The merger will expand Heritage's branch network, add commercial lending capabilities to the bank's Diablo Valley operations, and bring total assets for the combined entities to $1.3 billion.
"We expect the transition to be seamless to our customers," said John Hounslow, chairman of the board of directors of Diablo Valley Bank.
The boards of both companies unanimously approved the transaction, which is subject to approval by DVB's shareholders, as well as regulators and other customary conditions of closing. They expect the transaction to close in the second or third quarter of 2007.
Diablo Valley Bank was founded in October 2003 and is one of the fastest growing community banks in the region with $249 million in assets; $199 million in loans; $224 million in deposits; and shareholders' equity of $24 million at Dec. 31, 2006. DVB, with branches in Danville and Pleasanton, serves the banking and financial needs of entrepreneurs, their families, business ventures and real estate investments.
Diablo Valley Bank has just opened its new headquarters and branch office at 387 Diablo Road. Its ribbon-cutting is scheduled for noon, Monday, Feb. 26, which will kick off a week of festivities.
"We are delighted to be joining forces with the Diablo Valley team, which has established a phenomenal organization in a very short time period," said Walter Kaczmarek, president and CEO of Heritage Commerce Corp. "It enhances our position in the affluent East Bay communities of Danville and Pleasanton, which have exceptional demographics for attracting deposits and a very strong entrepreneurial business community."
Heritage Commerce Corp is headquartered in San Jose, with nine full-service branches, including one in Danville.