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Pacific Premier to Buy Opus Bank

Irvine-based Pacific Premier Bancorp (Nasdaq: PPBI) said it will buy cross-town rival Opus Bank in an all-stock transaction valued at $1 billion.

The deal creates one of the largest banks based in California with $20 billion in assets.

Opus, which has $8 billion in total assets, operates 46 banking offices located throughout California, Washington, Oregon and Arizona.

“The combination with Opus provides us with a meaningful presence in attractive major metropolitan markets with operational scale, a complementary set of banking products and services, and improved revenue and business diversification,” Chief Executive Steve Gardner said in a statement.

The deal valued Opus (Nasdaq: OPB) at $26.82 a share, less than a 1% premium to its Jan. 31 close. Since the sale is tied to Pacific Premier’s stock price, both banks today fell in tandem. Pacific Premier dropped 5.2% to $28.25 and a $1.7 billion market cap while Opus declined 5.1% $25.27 and a $904 million market cap.

Pacific Premier expects the transaction to be 14% accretive to EPS in 2021 with a 1.8 year earn-back period to tangible book value per share, based on an anticipated cost savings of approximately 25%.

For more details on the acquisition, see the February 10 print edition of the Business Journal.

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Peter J. Brennan
Peter J. Brennan
Peter J. Brennan has been a journalist for 40 years. He spent a decade in Latin America covering wars, narcotic traffickers, earthquakes, and business. His resume includes 15 years at Bloomberg News where his headlines and articles sometimes moved the market caps of companies he covered by hundreds of millions of dollars. His articles have been published worldwide, including the New York Times and the Washington Post; he's appeared on CNN, CBC, BBC, and Bloomberg TV. He was awarded a Kiplinger Fellowship at The Ohio State University.
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