CVB Financial (CVBF) in Ontario, Calif., has agreed to buy America Bancshares in Newport Beach, Calif.
CVB said in a press release Tuesday that it will pay $57 million in cash for America Bancshares, or 133% of the seller's tangible book value. Last week, the $6.7 billion-asset CVB had discussed its interest in making an acquisition, but had admitted to facing challenges finding the perfect target.
America Bancshares has $412 million in assets $253 million in loans, $356 million in deposits. CVB said it expects it complete the acquisition in the second or third quarter.
"We believe American Security Bank and its strong team of associates is a terrific fit," Christopher Myers, CVB's president and chief executive, said in the release. "Both organizations share a common philosophy and approach to community banking with an emphasis on serving the financial needs of small-to-medium sized business customers and owners."
Excluding one-time costs, CVB said it expects the transaction to be accretive to earnings per share. CVB also said that it expects the acquisition to result in roughly 3.6% dilution to tangible book value per share at closing, adding that it should take less than four years to earn back the dilution.
Sandler O'Neill and Manatt, Phelps & Phillips advised CVB. Hovde Group and Pillsbury Winthrop Shaw Pittman advised America Bancshares.