CVB Financial in Ontario, Calif., has agreed to buy Valley Commerce Bancorp in Visalia.
The $8.3 billion-asset CVB said Thursday that it would pay $57.5 million in cash and stock for the $416 million-asset parent of Valley Business Bank. That figure excludes a special dividend of up to $12.8 million that would be paid to Valley Commerce shareholders.
CVB predicts a modest earnings accretion in 2017 from the acquisition, and it estimates 1% dilution in tangible book value that would be earned back within three years. The deal is expected to close in the first quarter.
The Valley Business Bank unit, which has four offices, would adopt the name of CVB's operating unit, Citizens Business Bank.
"Valley Business Bank is a strong community bank and an excellent strategic and geographic fit for Citizens," Christopher Myers, the president and chief executive of CVB, said in a release.
Keefe, Bruyette & Woods and Gary S. Findley & Associates were financial advisers. Manatt, Phelps and Phillips and Gary Findley were legal counsels.