California-based Pacific Premier Bancorp, the parent of Pacific Premier Bank, has agreed to acquire local lender Plaza Bancorp, the parent of Plaza Bank, in an all-stock deal worth nearly $226.3m.
Plaza reported $1.3bn in total assets, $1.1bn in gross loans and $1.1bn in total deposits at the end of June 2017. The company has seven offices in Irvine, Manhattan Beach, El Segundo, Pasadena, Montebello, San Diego and Las Vegas.
Under the terms of the deal, Plaza common stock holders will be entitled to receive 0.200 shares of Pacific Premier common stock for each share held.
Existing shareholders of Pacific Premier will hold a stake of around 86.9% in the merged entity, with Plaza shareholders owning a stake of around 13.1%.
The deal is expected to be completed in the fourth quarter of 2017 or early first quarter of 2018, subject to shareholder and regulatory approvals.
The deal will boost Pacific Premier’s assets to around $7.7bn. Pacific Premier expects the deal to be “accretive to earnings per share and tangible book value per share”.
Pacific Premier chairman, president and CEO Steven Gardner said: “Entering Los Angeles County has been a key focus of our long-term strategic plan to build Pacific Premier into the leading commercial bank headquartered in Southern California, and this transaction will enable us to achieve that goal in a way that makes strategic and economic sense for our franchise.”