Expansion plans for Columbia as they announce a $2 billion acquisition of Pacific Premier in Southern California.
Columbia Banking System Acquires Pacific Premier Bancorp in Major Merger
Columbia Banking System, based in Tacoma, Washington, has announced a significant move in the banking industry with its all-stock acquisition of Irvine-based Pacific Premier Bancorp. The deal, valued at $2 billion, is set to close on or around August 31, 2025, following the necessary regulatory approvals and shareholder votes.
The acquisition, first announced on April 23, 2025, marks a significant milestone for both banks. Pacific Premier stockholders will receive 0.9150 of a share of Columbia common stock for every Pacific Premier share they own, equivalent to $20.83 per share.
Once the transaction closes, Pacific Premier stockholders will own roughly 30% of Columbia's outstanding shares. Three Pacific Premier directors, including the bank's CEO, Steve Gardner, will join Columbia's board.
The deal adds approximately $18 billion in assets to Columbia, accelerating its expansion in Southern California by about a decade. The combined entity after the transaction would count about $70 billion in assets.
Pacific Premier Bank is one of the best-capitalized banks in the country, and the acquisition gives Columbia a buffer from Pacific Premier's 17% common equity tier 1 capital ratio, more than double the California bank's 7% regulatory minimum.
For Pacific Premier clients, the transaction unlocks Columbia's treasury management products and wealth management services. On the other hand, the deal gives Columbia access to Pacific Premier's homeowners association banking and custodial trust verticals, which are low-cost deposit generators.
The acquisition continues the momentum in mergers and acquisitions after the Federal Reserve and Office of the Comptroller of the Currency gave final approvals for Capital One's $35.3 billion purchase of Discover. It also matches the richest deals completed in 2024, such as UMB's $2 billion acquisition of Heartland Financial and SouthState's $2 billion purchase of Independent Bank.
Columbia projects it would earn back its tangible book value dilution within three years. After the acquisition, Columbia plans to rebrand its retail bank network as Columbia Bank later this year.
This merger strengthens Columbia's market position across western U.S. states—including Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington—by combining Columbia Bank's and Pacific Premier Bank's complementary market footprints and customer bases.
[1] Columbia Banking System Press Release, April 23, 2025. [2] Pacific Premier Bancorp Press Release, April 23, 2025. [3] The Wall Street Journal, July 22, 2025. [4] American Banker, August 5, 2025. [5] Bloomberg, August 10, 2025.
- The acquisition of Pacific Premier Bancorp by Columbia Banking System marks a significant move in the business world, particularly in the finance industry, as it brings together two major players.
- Following the completion of the merger, Columbia Banking System will expand its assets and increase its presence in the industry, with a combined value of about $70 billion.
