US-based CVB Financial has reached an agreement to acquire Community Bank in a cash-and-stock transaction of $878.3m.

CVB Financial will pay $177.5m in cash and the equivalent of 30 million shares of its common stock to Community Bank shareholders.

For each share of Community common stock, its shareholders will receive a fixed 9.46 shares of CVBF common stock and $56 in cash. Following the merger, Community Bank shareholders will in total own  21.4% stake in CVBF’s outstanding stock.

CVB Financial CEO Christopher Myers said: “We are excited to be merging with a successful business bank that has been built customer by customer for the past 74 years.

“Our combination with Community Bank provides us tremendous financial opportunity in terms of depth of talent, a strong and diverse customer base, and significant geographic overlap. We have truly admired this franchise for a long time. The reality of blending our two teams is very exciting.”

Community Bank CEO David Misch said: “We are delighted to be joining forces with an organization that so strongly complements and builds upon Community Bank’s long-standing tradition of customer, employee and community focus.”

Upon completion of acquisition, Community will operate as Citizens Business Bank, a unit of CVB Financial, and will continue to offer a number of products and services, including expertise in personal, small business, private and corporate banking, in addition to treasury management and trust services.

As of 31 December 2017, the family-owned Community Bank had about $3.7bn in total assets, $2.7bn in gross loans and $2.9bn in total deposits. The bank manages sixteen offices across Los Angeles and Orange counties.

The deal will increase Citizens’ total assets to approximately $12bn on a pro forma basis as of 31 December 2017.

After completion of the deal, Marshall Laitsch, chairman of the board of Community, will join the board of CVBF.

The merger is slated to be completed during the third quarter of 2018, after receiving customary regulatory approvals and the approval of CVBF and Community shareholders. The merger has been approved by the boards of directors of Community, CVBF and Citizens.