Pacific Premier Bancorp in Irvine, Calif., has agreed to buy Grandpoint Capital in Los Angeles.
The $8 billion-asset Pacific Premier said in a press release Monday that it will pay $641 million in stock for the $3.2 billion-asset parent of Grandpoint Bank. The deal, which is expected to close in the third quarter, prices Grandpoint at 212% of its tangible book value.
Grandpoint is a business bank with 14 branches, $2.4 billion in loans and $2.4 billion in deposits. Pacific Premier will have more than $10 billion in assets when the deal closes.
Pacific Premier said it expects the deal to be 4.6% accretive to this year’s earnings per share and 8.6% accretive in 2019. It should take roughly a year to earn back the acquisition’s expected 2.4% dilution to Pacific Premier’s tangible book value.
“Grandpoint is a highly attractive business banking franchise that we have known for many years and believe will be an excellent strategic and cultural fit with our existing franchise,” Steven Gardner, Pacific Premier’s chairman, president and CEO, said in the release.
“The expansion of our organization remains a key focus of our long-term strategic plan as we build Pacific Premier into the leading commercial bank headquartered in Southern California,” Gardner added.
Pacific Premier plans to cut about 40% of Grandpoint’s noninterest expense, with three-fourths of the cuts taking place this year.
Raymond James and Holland & Knight advised Pacific Premier. Keefe, Bruyette, & Woods and Sullivan & Cromwell advised Grandpoint.
