Pacific Premier Bancorp, the holding company of Pacific Premier Bank, has entered into an agreement to acquire Plaza Bancorp in a deal worth nearly $226.3m.
Plaza Bancorp is the holding company of Plaza Bank, which is major community bank headquartered in Irvine with about $1.3bn in assets.
The acquisition is expected to strengthen Pacific Premier's position as one of the major commercial banks headquartered in Southern California.
Headquartered in Irvine, California, Pacific Premier Bancorp’s total assets stood at $1.3bn as of 30 June 2017.
Pacific Premier president and chief executive officer 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.”
The transaction is expected to increase Pacific Premier's total assets to nearly $7.7bn on a pro forma basis.
Following the merger, existing Pacific Premier shareholders will own nearly 86.9% of the outstanding shares of the combined company, while the remaining shares are expected to be owned by Plaza shareholders.
Plaza president Rick Sowers said: “On a combined basis, Pacific Premier can offer greater capital resources and an expanded array of products and services, which we believe will be beneficial to our clients and our employees.”
The transaction is expected to be completed in the fourth quarter of 2017 or early first quarter of 2018.
It is subject to satisfaction of customary closing conditions, including regulatory approvals and approval of Plaza's shareholders.