Pacific Premier Bancorp in Irvine, Calif., has agreed to buy Heritage Oaks Bancorp in Paso Robles, Calif.

The $3.8 billion-asset Pacific Premier said in a press release Tuesday that it will pay $405.6 million, or $11.68 a share, for the $2 billion-asset Heritage Oaks. The stock transaction, which is expected to close in the second quarter, values Heritage Oaks at 214.2% of its tangible book value.

Pacific Premier said it expects the deal to be immediately accretive to its tangible book value per share and 5.2% accretive to earnings per share in 2018. The company said it expects to cut about 27% of Heritage Oaks' noninterest expenses. Pacific Premier said it expects to incur about $22 million in merger-related expenses.

Heritage Oaks, led by President and CEO Simone Lagomarsino, a former American Banker Community Banker of the Year, has 12 branches, $1.3 billion in loans and $1.6 billion in deposits. Lagomarsino is one of three Heritage Oaks directors who will join Pacific Premier's board. Heritage Oaks was recently freed from a consent order tied to Bank Secrecy Act compliance.

"Heritage Oaks has built a highly attractive franchise with a strong team of relationship managers and a commitment to superior customer service," Steve Gardner, Pacific Premier's chairman and CEO, said in the release. "We have known the executive management team … for many years and we believe their bank will be an excellent fit with our existing franchise."

D.A. Davidson and Holland & Knight advised Pacific Premier. Sandler O'Neill and Manatt, Phelps & Phillips advised Heritage Oaks.

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