Pacific Premier Bancorp in Irvine, Calif., has agreed to buy Security California Bancorp in Riverside, Calif.
The $2.6 billion-asset Pacific Premier said in a press release Thursday that it will pay $118.9 million in stock for the $734 million-asset Security California. Pacific Premier will also pay $766,000 for Security California’s stock options.
The deal is expected to close early in the first quarter.
Pacific Premier said it expects the deal to generate “modest” earnings accretion next year and about 5% accretion in 2017. Pacific Premier also said it expects the deal will dilute its tangible book value by 2.3%, though the company said it should earn the dilution back in about three years.
Pacific Premier said it will close three Security California branches.
D.A. Davidson and Holland & Knight advised Pacific Premier. Panoramic Capital Advisors, Oppenheimer and Stuart Moore and Varner & Brandt advised Security California.