Columbia Banking System has agreed to acquire Pacific Premier Bancorp in an all-stock deal valued at around $2bn.

The merged entity will have around $70bn in assets.

Under the agreed terms, Pacific Premier shareholders will receive 0.9150 shares of Columbia common stock for each share held, representing $20.83 per Pacific Premier share based on Columbia’s stock price as of 22 April 2025.

Following the combination, Pacific Premier shareholders will own about 30% of Columbia’s outstanding shares. The boards of both companies have unanimously approved the deal.

Columbia subsidiary Umpqua Bank will change its name to Columbia Bank later this year to align with the holding company and its various brands.

Pacific Premier chairman, president and CEO Steve Gardner said: “The combination of these two companies operating in growing markets provides a great opportunity for our teams to continue to deliver high-quality, relationship-based banking products, services, and expertise to our clients, and to continue to generate long-term value for our stockholders.”

The deal is expected to bolster Columbia’s position as a “leading” regional bank in the West, with over $57bn in deposits across key states, including California, Oregon, and Washington.

Additionally, the merger will broaden Columbia’s product offerings, incorporating Pacific Premier’s strengths in specialised banking sectors such as Homeowners Association Banking and Custodial Trust services.

Clients of Pacific Premier will also gain access to Columbia’s Treasury Management and Wealth Management services.

Financially, the merger is anticipated to yield mid-teens earnings per share (EPS) accretion for Columbia, with tangible book value dilution expected to be recovered within three years.

Columbia president, CEO and director Clint Stein said: “This combination truly establishes the leading banking franchise in the Western region.

“It is a natural and strategic fit that strengthens our competitive position in Southern California, enhances our service offerings, and elevates our performance.”

The deal awaits regulatory approvals and stockholder consent, with completion expected in the latter half of 2025.

Last month, Umpqua Bank opened its first retail branch and commercial office in Denver, Colorado, continuing its expansion in the Western US.

This follows its entry into the Colorado market in 2022, where it began offering commercial real estate services.