CVB Financial in Ontario, Calif., has agreed to buy Suncrest Bank in Visalia, Calif.
The $15 billion-asset CVB said in a press release Tuesday that it will pay $204 million in cash and stock for the $1.3 billion-asset Suncrest. The deal is expected to close by early 2022.
CVB said it expects the deal to be 3.5% accretive to its 2023 earnings per share, excluding merger-related expenses and assuming full realization of cost savings. CVB said it should take less than two years to earn back an estimated 0.8% dilution to its tangible book value per share.
Suncrest has seven branches, two loan-production officers, $900 million of loans and $1.2 billion of deposits.
The acquisition “will deliver important benefits to our combined customers through our increased presence in the Central Valley and expansion into Sacramento, a sizable and important new market … that presents significant growth opportunities,” David Brager, CVB’s CEO, said in the release.
Piper Sandler and Manatt, Phelps & Phillips advised CVB. MJC Partners and Sheppard, Mullin, Richter & Hampton advised Suncrest.