Columbia Banking System announces acquisition of Pacific Premier Bancorp in strategic California expansion
Deal News | Apr 28, 2025 | EIN
Columbia Banking System, the parent company of Umpqua Bank, has announced its acquisition of Pacific Premier Bancorp in an all-stock transaction valued at approximately $2 billion. The merger is expected to be finalized in the second half of the year following regulatory and stockholder approvals. The combined entity will have around $70 billion in assets and aims to establish a leading banking franchise in the Western U.S., particularly strengthening Columbia's position in Southern California. Pacific Premier stockholders will receive 0.9150 shares of Columbia common stock for each Pacific Premier share, resulting in their owning roughly 30% of Columbia's outstanding shares. The merger is also set to enhance product offerings for both banks' customers. Three directors from Pacific Premier, including CEO Steve Gardner, will join Columbia's board upon completion of the merger. This strategic move is designed to accelerate Columbia's market share gains and geographical expansion.
Sectors
- Banking and Financial Services
- Mergers and Acquisitions
Geography
- United States – The involved companies, Columbia Banking System and Pacific Premier Bancorp, are based in the U.S. and the merger will affect California and the Western region's market.
- California – The state mentioned due to Pacific Premier Bancorp's location and Columbia's strategic expansion in the Southern California banking market.
Industry
- Banking and Financial Services – This industry encompasses the entities involved in bank operations, financial services, mergers, and acquisitions, which are central to the article.
- Mergers and Acquisitions – The article discusses the strategic merger agreement and acquisition activities between Columbia Banking System and Pacific Premier Bancorp.
Financials
- $2 billion – The total value of the all-stock acquisition deal between Columbia Banking System and Pacific Premier Bancorp.
- $20.83 – The per-share valuation of Pacific Premier's stock based on Columbia's stock price as of April 22.
- $70 billion – The combined asset total for Columbia Banking System and Pacific Premier Bancorp post-merger.
- 0.9150 – The ratio of Columbia common stock to be received for each share of Pacific Premier stock by its stockholders.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Columbia Banking System | Acquiring Company | Company | The parent company of Umpqua Bank, set to acquire Pacific Premier Bancorp. |
| Pacific Premier Bancorp | Target Company | Company | A California-based bank being acquired by Columbia Banking System. |
| Umpqua Bank | Subsidiary | Company | A subsidiary of Columbia Banking System undergoing rebranding and expansion efforts. |
| Clint Stein | CEO | Person | President, CEO, and director of Columbia Banking System. |
| Steve Gardner | CEO | Person | Chairman, president, and CEO of Pacific Premier Bancorp, joining the Columbia board. |