River Bancorp, Reedley, Calif., for $20.6 million in stock.
The deal, announced Sept. 8, would boost VIB's assets to $950 million and give it 19 branches in southern and central California. VIB said it would pay Kings River 2.5 times its book value and 15.86 times its trailing fourth-quarter earnings.
Kings River, parent of Kings River State Bank, has $87 million of assets and five branches. The bank would retain its employees, local board, and senior management team, VIB said.
"Kings River is an ideal partner to further our growth and expansion into the San Joaquin Valley," said Dennis Kern, president and chief executive officer of VIB, who would join Kings River's board of directors. The deal is expected to close in the first quarter. -- Matt Andrejczak