Pacific Premier Bancorp (PPBI) Q1 2025 & Merger earnings summary

Executive summary

• Columbia Banking System will acquire Pacific Premier Bancorp in an all-stock transaction valued at $2.0 billion, creating a $70 billion asset Western regional bank with a top-10 deposit market share in Southern California.

• Pacific Premier shareholders will receive 0.9150 Columbia shares per share and own about 30% of the combined company; three Pacific Premier directors, including CEO Steve Gardner, will join Columbia's board.

• Q1 2025 net income was $87 million (Columbia) and $36 million (Pacific Premier), with Columbia reporting operating EPS of $0.67 and Pacific Premier reporting $0.37 per share.

• The merger accelerates Columbia's Southern California expansion by a decade, brings complementary products and talent, and enhances fee income streams.

• Opened new branches in Colorado and Denver, executed successful deposit campaigns, and continued investment in technology and customer experience.

Financial highlights

• Q1 2025 EPS was $0.41 (reported) and $0.67 (operating) for Columbia; Pacific Premier reported $0.37 per share.

• Net interest margin for Columbia was 3.60%, down 4 bps sequentially; Pacific Premier's was 3.06%, up 4 bps.

• Non-interest income for Columbia was $66 million (reported) and $56.9 million (operating); Pacific Premier's was $21.5 million.

• Columbia's operating PPNR was $212 million; Pacific Premier's efficiency ratio was 67.5%.

• Columbia's loan origination volume increased 17% year-over-year; Pacific Premier's new loan commitments were $319.3 million.

Outlook and guidance

• The merger is expected to be accretive to EPS by 14% in 2026 and 15% in 2027, with tangible book value earnback in three years.

• Combined company targets top-quartile profitability, with 20% ROATCE and 1.4% ROAA in 2026, assuming full cost synergies.

• Operating expenses (excluding CDI amortization) expected in the $1.0–$1.01 billion range for 2025; tax rate projected in the mid-25% range.

• Management highlights prudent credit risk management, strong capital, and regular dividends.

• The transaction is expected to close in the second half of 2025, pending regulatory and shareholder approvals.