Pacific Premier Bancorp to acquire Opus Bank in $1 billion deal – Daily News

on Feb6
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Irvine-based Pacific Premier Bancorp., holding company of Pacific Premier Bank, has agreed to buy Opus Bank in an all-stock deal valued at $1 billion.

Opus, also headquartered in Irvine, operates 46 banking branches scattered throughout California, Washington, Oregon and Arizona. The company had $8 billion in assets, $5.9 billion in loans and $6.5 billion in deposits as of Dec. 31.

The acquisition will increase Pacific Premier’s footprint to 86 branches with total assets of roughly $20 billion.

The deal is subject to regulatory and shareholder approval and expected to close in the second quarter of 2020.

Steven R. Gardner, Pacific Premier’s chairman, president and CEO, dubbed it a “transformative merger.”

“The combination with Opus provides us with a meaningful presence in attractive major metropolitan markets with operational scale, a complementary set of banking products and services, and improved revenue and business diversification,” Gardner said in a statement, adding that the company will be “well-positioned” to generate profitable growth in the future.

Opus President and Chief Executive Paul Taylor said the combination creates “one of the most attractive banks in the Western U.S.”

Pacific Premier serves small and middle-market businesses in Orange, Los Angeles, Riverside, San Bernardino, San Diego, San Luis Obispo and Santa Barbara counties, as well as markets in Arizona, Nevada and Washington. The company offers a wide range of loan products, including commercial, commercial real estate, construction and SBA loans, in addition to specialty banking products for homeowners’ associations and franchise lending.

Opus provides commercial and retail banking products to clients in Western markets. Its loans serve a variety of industries, including healthcare, media and entertainment, corporate finance, multifamily residential, commercial real estate and structured finance.

Under the terms of the agreement approved by the board of directors of both companies, holders of Opus common stock will have the right to receive 0.90 shares of Pacific Premier common stock for each share of Opus common stock they own. Existing Pacific Premier shareholders will own about 63% of the outstanding shares of the combined company and Opus shareholders will own the remaining 37%.

The acquisition is expected to leverage Pacific Premier’s investment in technology, fuel greater revenue diversification, boost low-cost deposits through escrow and trust business lines and create more opportunities to return capital to shareholders.

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