Umpqua Bank parent company Columbia Bank announces latest acquisition, set to expand California interests

TACOMA — Tacoma-based Columbia Banking System on Wednesday announced the planned acquisition of a California-based bank.

Columbia and Irvine, Calif.-based Pacific Premier Bancorp announced entering a definitive merger agreement. Under the terms, Columbia will acquire Pacific Premier in an all-stock transaction.

The combined institution will have approximately $70 billion in assets, according to a joint news release.

The deal faces regulatory approvals and the approval of Columbia’s and Pacific Premier’s stockholders. It is anticipated to close in the second half of this year.

“This combination truly establishes the leading banking franchise in the Western region,” said Clint Stein, president, CEO, and director of Columbia, in a statement. “It is a natural and strategic fit that strengthens our competitive position in Southern California, enhances our service offerings, and elevates our performance.”

Pacific Premier chairman, president and CEO Steve Gardner said, “We have worked tirelessly for more than two decades to build a strong franchise at Pacific Premier. We are thrilled to have the opportunity to join Columbia, a company whose culture, business model, and credit discipline align with our own.”

Under the merger’s terms, Pacific Premier stockholders would receive 0.9150 of a share of Columbia common stock for each Pacific Premier share they own, according to the release. The merger is valued at approximately $2 billion, or $20.83 per Pacific Premier share, based on Columbia’s closing stock price of $22.77 on April 22, the release noted.

After closing, Pacific Premier stockholders will own approximately 30 percent of Columbia’s outstanding shares of common stock.

Three Pacific Premier directors, including Steve Gardner and two current Pacific Premier directors to be approved by Columbia and Pacific Premier, will join the Columbia board upon merger completion.

The agreement announced Wednesday was unanimously approved by the Boards of Directors of Columbia and Pacific Premier.

While Pacific Premier customers would gain access to Columbia’s Treasury Management products and Wealth Management services, Columbia customers would gain access to Pacific Premier’s own specialized products, including Homeowners Association Banking and Custodial Trust.

Columbia is the parent company of Umpqua Bank. The two announced their own merger in 2021 and completed in 2023. Wednesday’s release noted that Umpqua Bank plans to change its name to Columbia Bank later this year, “to ensure brand clarity as Umpqua Bank deepens its expansion throughout the West and to simplify the bank’s family of brands.”

This means Columbia branches in the region will be switching back to that name, following previous rebranding as Umpqua.

The release also noted that the merger with Premier, “accelerates Columbia’s expansion in Southern California by approximately a decade, moving its deposit market share to a top-10 position.”

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