Columbia Banking System to acquire Pacific Premier Bancorp, creating a $70bn asset entity.

From Yahoo Finance: 2025-04-24 08:00:00

Columbia Banking System is set to acquire Pacific Premier Bancorp in a $2bn all-stock deal, creating a combined entity with $70bn in assets. Pacific Premier shareholders will receive 0.9150 shares of Columbia stock per share. The merger aims to strengthen Columbia’s position as a leading regional bank in the West.

The deal, approved unanimously by both boards, will see Pacific Premier shareholders owning 30% of Columbia’s outstanding shares. Columbia subsidiary Umpqua Bank will be rebranded as Columbia Bank. The merger is expected to enhance product offerings and generate mid-teens EPS accretion for Columbia.

Pacific Premier clients will gain access to Columbia’s Treasury and Wealth Management services. The deal, pending regulatory approvals, is anticipated to be completed in the latter half of 2025. Columbia president Clint Stein sees the merger as a strategic fit that enhances their competitive position in Southern California.

The merger is set to broaden Columbia’s product offerings with Pacific Premier’s expertise in specialized banking sectors. Financially, the merger is expected to yield mid-teens EPS accretion for Columbia, with tangible book value dilution recovery in three years. The deal awaits regulatory approvals and stockholder consent.

Last month, Umpqua Bank expanded its presence in Denver, Colorado, marking its continued growth in the Western US. This follows its entry into the Colorado market in 2022, offering commercial real estate services. Columbia aims to establish a leading banking franchise in the Western region through the merger with Pacific Premier.

Read more: Columbia Banking to acquire Pacific Premier in $2bn deal