A major banking merger announced in December is set to expand business lending and financial services across California, with potential impacts for companies in the San Gabriel Valley. CVB Financial Corp., the parent company of Citizens Business Bank, has agreed to merge with Heritage Commerce Corp. in an all-stock deal valued at approximately $811 million.
The combined institution will hold roughly $22 billion in assets and operate more than 75 offices statewide. The expansion strengthens Citizens Business Bank’s footprint and positions it as a leading commercial bank across key economic regions.
Merger Strengthens Statewide Banking Network
The agreement brings together two relationship-focused business banks with complementary geographic coverage. Citizens Business Bank, headquartered in Ontario, will expand its presence into the Bay Area, a long-term strategic goal.
Heritage Bank of Commerce currently serves businesses throughout Northern California. By combining operations, the merged company will offer broader access to banking, lending, and investment services across the state.
David Brager, president and chief executive officer of Citizens, described the transaction as the largest acquisition in the bank’s history. He said the merger will create comprehensive coverage across California’s major business markets while maintaining a local approach to customer service.
Leadership from both institutions will remain involved. Brager will continue as CEO, while Heritage CEO Clay Jones will join the combined company as president.
Financial Outlook And Growth Potential
Under the terms of the deal, Heritage shareholders will receive 0.65 shares of CVB Financial common stock for each share held. After completion, CVB shareholders will own about 77 percent of the combined company, with Heritage shareholders holding the remaining 23 percent.
The transaction is expected to boost earnings per share and deliver long-term financial gains. Projections estimate a 13.2 percent increase in earnings by 2027 and a strong internal rate of return near 20 percent.
The merger has received unanimous approval from both companies’ boards and is expected to close in the second quarter of 2026, pending regulatory and shareholder approvals.
Implications For San Gabriel Valley Businesses
For businesses in the San Gabriel Valley, the merger could expand access to capital and banking services. Citizens Business Bank already maintains a strong presence in cities such as El Monte, Baldwin Park, and Arcadia, where commercial lending plays a key role in local economic activity.
A larger banking platform may provide increased lending capacity, enhanced financial products, and more resources for small and mid-sized businesses. Companies in Temple City, Rosemead, and South El Monte could benefit from expanded services and broader expertise.
The merger also reinforces a trend toward consolidation in the banking industry, as institutions seek scale to compete and manage rising operational costs.
Local Outlook Remains Focused On Growth
As the merger moves toward completion, local businesses and community leaders will be watching how the expanded bank integrates services and maintains its relationship-based approach. Access to reliable financing remains critical for economic growth across the Mid Valley.
The combined institution’s focus on personalized service and statewide reach may offer new opportunities for businesses navigating a changing economic environment. For more information, visit Citizens Business Bank at https://www.cbbank.com.
As regional economies evolve, the merger highlights the importance of strong financial institutions in supporting business development and long-term stability.
