Inland Empire Bank Buying Orange National Bancorp

The parent of Citizens Business Bank--the largest bank headquartered in the Inland Empire--said Tuesday it plans to expand into south Orange County by purchasing Orange National Bancorp for about $75 million in stock.

Under the deal--subject to shareholder and regulatory approval--Orange National’s six branches would be converted to Citizens Business Bank branches, according to D. Linn Wiley, chief executive officer at Ontario-based CVB Financial Corp., the holding company for Citizens.

The purchase price represents a 28% premium over Orange National’s stock price, which closed Tuesday at $29 a share, up $1.19.

Orange-based Orange National, which has about $279 million in assets, is owned by about 500 shareholders, including bank officers who control a 30% stake.

Wiley said Kenneth Cosgrove, president of Orange National, will join CVB as a regional manager. Wiley was uncertain whether any of Orange National’s other 120 employees would be laid off but said there were no plans to close any branches.

With $1.6 billion in assets, Citizens Bank already operates two branches in north Orange County. The companies expect the deal to close by the end of the year.