Pacific Premier Joins Columbia in $2B All-Stock Deal

Deal News | Apr 24, 2025 | EIN

Columbia Banking System, headquartered in Tacoma, Washington, has announced an acquisition of Pacific Premier Bank, based in Irvine, California, for $2 billion in an all-stock transaction expected to close later this year. This acquisition marks Columbia's second multi-billion-dollar acquisition since purchasing Oregon-based Umpqua Bank in October 2021. Post-acquisition, Columbia plans to rebrand its network under the Columbia Bank name to ensure brand consistency across its operations. This move is set to bolster Columbia's assets by approximately $18 billion, accelerating its Southern California expansion, bringing their total assets to about $70 billion, and securing a top 10 position in deposit market share in the region. Columbia's clients will have access to Pacific Premier's specialized banking and trust services, while Pacific Premier clients will gain access to Columbia’s treasury and wealth management services. Columbia CEO Clint Stein highlighted the strategic fit of this acquisition, aiming for industry-leading performance in the Western region. The deal is structured to bring about $900 million in value creation after transaction expenses. Pacific Premier shareholders will own approximately 30% of the combined company, and its CEO Steve Gardner, along with two other directors, will join Columbia's board. With approval from regulatory bodies, this deal exemplifies the ongoing trajectory of significant mergers and acquisitions within the banking sector.

Sectors

Banking
Financial Services
Mergers and Acquisitions

Geography

United States – The transaction involves Columbia Banking System based in Washington and Pacific Premier Bank based in California, both within the United States.
Southern California – The strategic focus of the acquisition is to expand Columbia's presence in the Southern California market.

Industry

Banking – This industry classification is relevant as the article discusses a merger between two banking institutions, Columbia Banking System and Pacific Premier Bank.
Financial Services – The financial services industry is relevant due to both companies providing services such as wealth management, treasury management, and specialized banking products.
Mergers and Acquisitions – The article focuses on the acquisition of Pacific Premier by Columbia Banking System, making it pertinent to the M&A sector.

Financials

$2 billion – The total value of the acquisition deal between Columbia and Pacific Premier.
$18 billion – The additional assets that will be added to Columbia's portfolio post-acquisition.
$70 billion – The total assets forecasted for Columbia Banking System after the acquisition.
$900 million – Projected value creation for Columbia after incurring $146 million in transaction expenses.
0.9150 – The exchange ratio of Columbia common stock for each Pacific Premier share.
$20.83 – The per-share value of Pacific Premier based on Columbia's stock price.

Participants

Name	Role	Type	Description
Columbia Banking System	Acquirer	Company	A bank holding company based in Tacoma, Washington, acquiring Pacific Premier to expand in Southern California.
Pacific Premier Bank	Target Company	Company	A banking institution based in Irvine, California, targeted for acquisition by Columbia Banking System.
Umpqua Bank	Holding Brand	Company	Owned by Columbia, its brand is used for the retail bank network in Columbia's previous acquisition.
Clint Stein	CEO of Columbia	Person	The Chief Executive Officer of Columbia Banking System, providing statements on the strategic fit of the acquisition.
Steve Gardner	CEO of Pacific Premier	Person	The Chief Executive Officer of Pacific Premier, who will join Columbia's board post-acquisition.
Federal Reserve	Regulator	Government	Provided final approvals for the acquisition, ensuring regulatory compliance.
Office of the Comptroller of the Currency	Regulator	Government	Granted necessary approvals for Columbia's acquisition of Pacific Premier.