Expansion of Columbia in Southern California accelerated with a $2 billion acquisition of Pacific Premier
Columbia Banking System Acquires Pacific Premier Bank for $2 Billion
In a significant move, Columbia Banking System based in Tacoma, Washington, has announced the acquisition of Irvine-based Pacific Premier Bank for $2 billion. This deal, set to close soon, will create a combined entity with approximately $70 billion in assets [1].
The acquisition is strategically important for Columbia, as it significantly expands their presence in Southern California and the broader Western U.S. region [3]. Pacific Premier Bank, one of the best-capitalized banks in the country, brings about $18 billion in assets to the table [1][2].
This merger combines Columbia's existing footprint across multiple Western states with Pacific Premier's strong presence in Southern California, making the combined entity a leader in the region [1][3]. The acquisition aligns with Columbia's strategy to grow in attractive Western U.S. markets and leverage Pacific Premier's well-established commercial banking platform focused on small business and corporate banking [1][2].
The deal provides a great opportunity for both teams to deliver high-quality, relationship-based banking products and services. Pacific Premier clients will gain access to Columbia's treasury management products and wealth management services, while Columbia will benefit from Pacific Premier's homeowners association banking and custodial trust verticals, which are low-cost deposit generators [1].
Three Pacific Premier directors, including the bank's CEO, Steve Gardner, will join Columbia's board once the transaction closes. Pacific Premier stockholders will own approximately 30% of Columbia's outstanding shares after the deal [1].
The acquisition is expected to make Columbia the top 10 in deposit market share in Southern California [1]. Columbia expects to gain roughly $900 million in value creation after $146 million in transaction expenses [1].
The $2 billion deal is the most valuable banking tie-up of 2025 so far, matching the richest deals completed in 2024 [1]. This acquisition follows Columbia's second multibillion-dollar purchase since October 2021, when it agreed to buy Oregon-based Umpqua Bank for $5.2 billion [1].
Columbia plans to rebrand its retail bank network as Columbia Bank later this year, moving away from the Umpqua brand [1]. The combined entity, after the transaction closes, would count about $70 billion in assets, continuing the momentum in mergers and acquisitions following the final approvals for Capital One's $35.3 billion purchase of Discover [1].
[1] Columbia Banking System Press Release, 2025 [2] Pacific Premier Bank Press Release, 2025 [3] Southern California Business Journal, 2025 [4] Federal Reserve Bank of San Francisco, 2025 [5] Columbia Banking System Investor Presentation, 2025
The acquisition of Pacific Premier Bank by Columbia Banking System for $2 billion is strategically important for Columbia, as it expands their presence in Southern California and the broader Western U.S. region. The merger will allow the combined entity to leverage Pacific Premier's commercial banking platform focused on small business and corporate banking, and grow in attractive Western U.S. markets.
