Columbia banking system and pacific premier receive shareholder approval

TACOMA/IRVINE - Columbia Banking System, Inc. (NASDAQ:COLB), a $5.09 billion market cap bank with a solid 29-year dividend payment history, and Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) announced Monday that shareholders have approved Columbia’s proposed acquisition of Pacific Premier. According to InvestingPro analysis, COLB currently trades below its Fair Value, suggesting potential upside for investors.

The approval marks a significant milestone in the transaction that will combine two western U.S. regional banking franchises. Both companies indicated that progress toward regulatory approvals remains on track, with the transaction expected to close later in 2025, subject to final regulatory approvals and other customary closing conditions. Columbia Banking System maintains strong fundamentals, with a P/E ratio of 10.24 and an attractive dividend yield of 5.91%.

"We are pleased by the overwhelming support for the proposed acquisition, which will enhance our market leadership across the West," said Clint Stein, President and CEO of Columbia.

Steve Gardner, Chairman, CEO and President of Pacific Premier, called the vote "an important step towards uniting our two exceptional and complementary franchises."

The merger will combine Columbia, which operates as Umpqua Bank with over $50 billion in assets across eight western states, with Pacific Premier, which has approximately $18 billion in total assets and operations in five western states.

The combined entity will strengthen Columbia’s position as one of the largest banks headquartered in the western United States, expanding its presence in key metropolitan markets throughout California, Washington, Oregon, Arizona, and Nevada.

The companies will file detailed voting results in their respective Current Reports on Form 8-K with the Securities and Exchange Commission, according to the press release statement.

In other recent news, Columbia Banking System is moving forward with its acquisition of Pacific Premier Bancorp, a transaction valued at approximately $2 billion. Piper Sandler has maintained its Overweight rating for Columbia Banking System, expressing confidence in the company’s strategy to focus on integrating Pacific Premier Bancorp while avoiding further mergers for at least two years. Meanwhile, Jefferies initiated coverage on Columbia Banking System with a Hold rating, citing potential short-term challenges in the integration process, but noting the long-term benefits of expanding its presence in the Western United States.

Citi adjusted its price target for Columbia Banking System to $24, maintaining a Neutral rating, and highlighted the challenges of entering the commercial and industrial lending market in Southern California. During its recent annual shareholder meeting, Columbia Banking System reported the election of all eleven board directors and the approval of executive compensation, reflecting shareholder support for the company’s current management and strategic direction. The ratification of Deloitte & Touche LLP as the independent auditor was also overwhelmingly approved.

DA Davidson upgraded Pacific Premier Bancorp’s stock rating to Neutral following the merger announcement, acknowledging the potential benefits for PPBI shareholders despite economic uncertainties. The merger agreement offers a modest premium over PPBI’s closing price, aligning with DA Davidson’s view of the merger’s potential to create value for shareholders of both institutions. As Columbia Banking System focuses on integrating Pacific Premier Bancorp, investors and stakeholders will closely monitor the company’s performance and strategic expansion efforts.

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