CVB Financial Corp. and Heritage Commerce Corp. Reveal Merger Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Should l Buy CVBF?
Source: Yahoo Finance
Merger Announcement: CVB Financial Corp. and Heritage Commerce Corp. have entered into a definitive merger agreement, with Heritage merging into Citizens in an all-stock transaction valued at approximately $811 million, enhancing Citizens' presence in the Bay Area and overall financial performance.
Leadership and Structure: Following the merger, David A. Brager will remain CEO of Citizens, while Clay Jones from Heritage will become President of the combined organization, with two Heritage directors joining Citizens' Board to ensure representation.
Financial Impact: The merger is expected to be immediately accretive to Citizens' earnings per share, with projected EPS accretion of 13.2% by 2027, and a tangible book value per share dilutive impact with a 2.5-year earn-back period.
Regulatory Approval and Timeline: The merger has been unanimously approved by both companies' Boards and is anticipated to close in the second quarter of 2026, pending customary regulatory and shareholder approvals.
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Analyst Views on CVBF
Wall Street analysts forecast CVBF stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 20.450
Low
22.50
Averages
23.83
High
26.00
Current: 20.450
Low
22.50
Averages
23.83
High
26.00
About CVBF
CVB Financial Corp. is the bank holding company for Citizens Business Bank (the Bank). The Bank offers an array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California. It offers a range of bank deposit instruments, which include checking, savings, money market and time certificates of deposit for both business and personal accounts, municipalities and districts, and specialized deposit products for title and escrow. It provides a full complement of lending products, including commercial, agribusiness, consumer, small business administration (SBA), real estate, and construction loans, as well as equipment and vehicle leasing. It also offers a range of specialized services designed for the needs of its commercial customers. In addition, it offers a range of financial services and trust services through its CitizensTrust division, which includes fiduciary services, mutual funds, annuities, 401(k) plans and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Per Share Growth: The adjusted earnings per share (EPS) reached $0.28, up 17% year-over-year, indicating the company's success in effective cost management and enhanced operating leverage, further boosting investor confidence.
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- Profitability Enhancement: Adjusted net income for the full year 2025 reached $56.4 million, a 39% increase from the previous year, reflecting successful cost management and customer base expansion, which strengthens future profitability and market position.
- Asset Quality Improvement: The ratio of nonperforming assets to total assets improved to 0.05% from 0.14% year-over-year, demonstrating effective credit quality management that helps reduce risk and boost investor confidence.
See More
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- Ongoing Recognition: CVB Financial Corp. has been included in Forbes' America's Best Banks list for the ninth time, highlighting its exceptional financial performance and solidifying its leadership position in the national financial services industry.
- Strong Financial Performance: In 2025, CVB Financial Corp. was ranked among the Top 50 Public Banks by S&P Global Market Intelligence and placed in the Top Three Large U.S. Banks by Deposit Franchise, showcasing its competitive strength and market influence.
- Sustained Ratings: The bank maintained its Five-Star Superior rating from BauerFinancial and its designation as a 'Super Premier' Performing Bank by The Findley Reports, reflecting its robust financial health and customer trust.
- Community Commitment: CEO David Brager emphasized that the company's success stems not only from financial performance but also from its long-term commitment to serving communities, which enhances customer loyalty and market share.
See More
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- Director Buy Signal: George A. Borba Jr., a director at CVB Financial Corp, purchased $500K worth of stock at an average cost of $18.45 per share over the past six months, indicating confidence in the company's future and potential undervaluation of the stock.
- Stock Performance: As of the latest trading session, CVB Financial's shares were priced at $20.77, reflecting a 2.2% increase from the previous day, suggesting positive market sentiment towards the company's outlook, with the stock nearing its 52-week high of $21.34.
- Dividend Yield: The company currently pays an annualized dividend of $0.8 per share, distributed quarterly, with the most recent ex-dividend date on December 29, 2025, resulting in an approximate annualized yield of 3.9%, providing investors with a reliable income stream.
- Long-term Dividend History: The long-term dividend history chart for CVB Financial indicates its ability to consistently pay dividends, which may enhance investor confidence in the company's future performance, especially in the current economic climate.
See More
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- Two Harbors Transaction: Halper Sadeh LLC is investigating Two Harbors Investment Corp. (NYSE: TWO) for its sale to UWM Holdings Corporation, which involves an exchange of 2.3328 shares of UWM Class A Common Stock for each share of Two Harbors common stock, potentially indicating breaches of fiduciary duties to shareholders.
- Avidity Biosciences Acquisition: Avidity Biosciences, Inc. (NASDAQ: RNA) is being sold to Novartis for $72.00 per share in cash, and Halper Sadeh LLC is assessing the implications of this transaction on shareholder rights and options.
- CVB Financial Merger: CVB Financial Corp. (NASDAQ: CVBF) is merging with Heritage Commerce Corp., which will result in CVB shareholders owning approximately 77% of the combined entity, prompting Halper Sadeh LLC to investigate the compliance of this merger.
- Tamboran Resources Merger: Tamboran Resources Corporation (NYSE: TBN) is merging with Falcon Oil & Gas Ltd., allowing Tamboran shareholders to own 73.2% of the combined company, and Halper Sadeh LLC may seek increased compensation and disclosures for shareholders regarding this deal.
See More
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- Dividend Payment Record: The company declared a dividend of $0.20 per share, representing the 145th consecutive quarter of cash dividends, further enhancing investor trust and attractiveness.
- Loan Growth: Total loans reached $8.7 billion as of December 31, 2025, reflecting a 2.7% increase from Q3 2025, indicating strong performance across nearly all loan categories and a solid position in the credit market.
- Decline in Non-Interest Income: While net interest income rose to $122.7 million, non-interest income fell to $11.2 million in Q4, down $1.8 million from Q3, highlighting challenges in diversifying revenue sources for the company.
See More
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- Financial Performance Boost: Heritage Commerce Corp reported a net income of $15.1 million for Q4 2025, reflecting a 62% year-over-year increase, primarily driven by sustained balance sheet growth and net interest margin expansion, showcasing the company's strong market performance.
- Earnings Per Share Growth: The adjusted earnings per share (EPS) reached $0.28, up 17% year-over-year, indicating the company's success in effective cost management and enhanced operating leverage, further boosting investor confidence.
- Strategic Merger Announcement: The company announced a merger with Citizens Business Bank valued at approximately $811 million, expected to close in Q2 2026, which will enhance market presence and create a combined asset base of about $22 billion, increasing long-term growth potential.
- Improved Asset Quality: The ratio of nonperforming assets to total assets decreased to 0.05%, down from 0.14% a year ago, indicating effective measures in credit quality management, thereby strengthening the company's financial stability.
See More
Heritage Commerce Corp Reports 62% Increase in Q4 2025 Net Income
- Financial Performance Boost: Heritage Commerce Corp reported a net income of $15.1 million for Q4 2025, reflecting a 62% year-over-year increase driven by sustained balance sheet growth and net interest margin expansion, thereby enhancing profitability and market competitiveness.
- Merger Strategy: The company announced a strategic merger with Citizens Business Bank valued at approximately $811 million, expected to create a top-performing California business bank with $22 billion in assets, further enhancing market share and long-term growth potential.
- Profitability Enhancement: Adjusted net income for the full year 2025 reached $56.4 million, a 39% increase from the previous year, reflecting successful cost management and customer base expansion, which strengthens future profitability and market position.
- Asset Quality Improvement: The ratio of nonperforming assets to total assets improved to 0.05% from 0.14% year-over-year, demonstrating effective credit quality management that helps reduce risk and boost investor confidence.
See More
