Steven Gardner

Steven Gardner

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.