Columbia CEO: Latest Merger Will Avoid Snags of the Last One
Deal News | Apr 28, 2025 | EIN
Columbia is set to acquire Pacific Premier in a strategic move to boost its presence in Southern California, aiming to create a combined $70 billion-asset company. This acquisition follows Columbia's challenging merger with Umpqua Holdings, which came with unexpected difficulties. The Pacific Premier deal, led by Columbia CEO Stein, promises a smoother integration with less overlap in operations, focusing on market expansion. The merger is expected to fuel growth, offering Columbia new banking verticals and increasing balance sheet flexibility. Stein and Pacific Premier CEO, Steve Gardner, highlight a similarity in company cultures and operational strategies, anticipating low execution risk. The deal, more affordable than previous ones, requires a $75 million termination fee, and is expected to close within eight months, with full integration by the first quarter of 2026.
Sectors
- Banking and Finance
- Mergers and Acquisitions
Geography
- United States – The article is centered on the merger activities of U.S.-based banks, Columbia and Pacific Premier, with implications for growth in Southern California and other regions within the U.S.
Industry
- Banking and Finance – The article discusses a merger involving Columbia and Pacific Premier, both of which operate in the banking sector, focusing on asset growth and market expansion.
- Mergers and Acquisitions – The article revolves around the acquisition of Pacific Premier by Columbia, detailing merger strategies, outcomes, and financial expectations, thus falling into the M&A sector.
Financials
- $70 billion – Projected combined asset size post-merger between Columbia and Pacific Premier.
- $18 billion – Asset size of Pacific Premier, the target company in the merger.
- $75 million – Termination fee associated with the merger agreement.
- 30% – Projected cost savings from the merger.
- 14% – Expected earnings per share accretion by 2026.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Columbia Bank | Bidding Company | Company | A Tacoma, Washington-based bank involved in acquiring Pacific Premier to expand its market presence. |
| Pacific Premier | Target Company | Company | An Irvine-based bank being acquired by Columbia to strengthen operations in Southern California. |
| Umpqua Holdings | Other Company | Company | A bank previously merged with Columbia, influencing its current structure and operational strategy. |
| Steve Gardner | CEO of Pacific Premier | Person | CEO of Pacific Premier involved in the merger discussion with Columbia. |
| Anthony Elian | Analyst | Person | An analyst at JPMorgan Securities providing insights on Columbia's post-merger growth potential. |
| Nicholas Holowko | Analyst | Person | An analyst at UBS commenting on the potential disruptiveness of Columbia's acquisition strategy. |