Citizens Business Bank is undergoing one of the biggest expansions in its history after completing its acquisition of Heritage Bank of Commerce in April, pushing its parent company above $20 billion in assets and giving the California business bank a much larger presence in the Bay Area.
A New California Footprint
The company now operates across every major economic center of California. The Heritage transaction substantially increased Citizens’ presence in the Bay Area while preserving its broader commercial-banking footprint. The group says it has more than 75 banking centers and three trust offices serving the state.
That makes the Heritage transaction more than a conventional branch expansion. It has changed the geographic profile and scale of Citizens Business Bank, which historically built its franchise around Southern California.
The bank has said it intends to maintain its relationship-focused model as it expands across the state.
The Heritage Deal Details
The central event behind the bank’s 2026 growth was the merger with Heritage Commerce Corp., the parent company of Heritage Bank of Commerce. CVB Financial and Heritage announced their agreement in December 2025 in an all-stock transaction initially valued at approximately $811 million.
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Shareholders of both companies approved the transaction in March 2026. The merger was completed on April 17, 2026, according to the company’s filing with the Securities and Exchange Commission.
At the time of the closing, Citizens said the transaction would push total assets above $20 billion, while loans would rise to approximately $12 billion and deposits and customer repurchase agreements to approximately $17 billion.
The company’s subsequent second-quarter results show how quickly the combined balance sheet grew. CVB Financial reported $21.18 billion in assets as of June 30, 2026. Second-quarter net income was $48.3 million, or 29 cents per diluted share.
Loans increased by $3.37 billion, or 39%, from the end of the first quarter, while deposits and customer repurchase agreements rose by $4.41 billion, or 35.5%, to $16.85 billion at June 30.
Net interest income reached $162.4 million, up $44.6 million, or 37.8%, from the first quarter. The company attributed much of the increase to the Heritage acquisition and the resulting increase in interest-earning assets.
Net interest margin increased to 3.72%.
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Profitability and Expenses
The headline earnings figure requires some context. Second-quarter net income of $48.3 million was below the $51 million reported in the first quarter and the $50.6 million reported in the second quarter of 2025. Earnings per share declined to 29 cents from 38 cents in the first quarter and 37 cents a year earlier.
The acquisition generated substantial expenses. CVB Financial reported $31.4 million in acquisition expenses and a $4.25 million provision for unfunded loan commitments during the quarter.
The company’s adjusted efficiency ratio, excluding acquisition expenses and the provision for unfunded loan commitments, was 43.88%. The bank nevertheless reported its 197th consecutive quarter of profitability, a streak spanning more than 49 years.
This pattern of growth followed by an immediate dip in earnings is common when a large institution absorbs a smaller one. The immediate cost of integration often overshadows the benefit of the larger balance sheet in the early months. Investors typically look past these initial expenses to see how the combined entity stabilizes its costs over time.
Share Repurchases and Leadership
In June, CVB Financial’s board authorized the repurchase of up to 15 million shares of common stock. The new 2026 program replaced the company’s previous 2024 repurchase authorization. The company said the new authorization reflected its capital position and long-term shareholder-return strategy.
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During the second quarter, CVB Financial repurchased 241,034 shares at an average price of $21.06 per share, for an aggregate purchase price of $5.1 million.
Citizens Business Bank also changed board leadership in May. George A. Borba Jr. became chairman of the boards of CVB Financial and Citizens Business Bank following the company’s May 20 annual meeting. Former chairman Hal W. Oswalt became vice chairman. Oswalt had served as chairman since 2022.
The company subsequently added another director, increasing the number of directors on the CVB Financial and Citizens Business Bank boards to 11.
Dividends Continue
CVB Financial also maintained its long-running dividend record. The company announced a 20-cent-per-share quarterly cash dividend for the second quarter of 2026, marking its 147th consecutive quarterly cash dividend.
For shareholders, the combination of the dividend and newly authorized share-repurchase program provides two mechanisms for returning capital while the company integrates the acquisition.
