News Summary
Pacific Premier Bancorp announced it will lay off 78 employees, nearly 6% of its workforce at the Irvine headquarters, as it prepares for a $2 billion merger with Columbia Banking System. The layoffs will affect mainly corporate positions and are planned to occur over four months. This merger is expected to create significant operational synergies and expand Columbia’s market share in Southern California, while also leading to a reduction in noninterest expenses.
Irvine, CA – Pacific Premier Bancorp Inc. will lay off 78 employees at its Irvine headquarters, constituting nearly 6% of its workforce, starting August 1. The job cuts are being implemented ahead of a merger with Columbia Banking System, a transaction valued at approximately $2 billion, which is expected to close in the second half of 2025 pending regulatory approval.
According to a letter submitted to the California Employment Development Department, the layoffs will affect mostly corporate positions, including several high-level executive roles. The exact positions being eliminated include the president and COO, chief financial officer, chief appraiser, chief credit officer, chief marketing officer, and various directors. The layoffs will take place over a span of four months, starting in August and continuing through November.
The impending merger aims to achieve significant operational synergies, with an estimated $127 million in cost savings anticipated, accounting for about 30% of Pacific Premier’s noninterest expenses. Tim Coffey, a banking analyst, highlighted that such mergers often lead to redundancies, particularly in high-ranking roles like CFO, chief credit officer, and chief human resources officer.
As of March 31, 2025, Pacific Premier had a total of 1,333 employees. The bank’s workforce reduction is viewed as a necessary step to streamline operations in preparation for the integration with Columbia Banking System. This acquisition is poised to add roughly $18 billion in assets to Columbia’s portfolio, significantly enhancing its market share in Southern California, where it has expressed a strong desire to penetrate due to the dense population and numerous opportunities.
This merger is indicative of the ongoing trend in the banking industry, characterized by consolidation aimed at bolstering competitive positioning and service offerings. Through this transaction, Pacific Premier’s clients will gain access to Columbia’s comprehensive treasury management and wealth management products.
Columbia Banking System, based in Tacoma, Washington, is known for its acquisition of Umpqua Bank in 2023 for $5.2 billion. Following the merger with Pacific Premier, the combined entity will have approximately $70 billion in assets, making it a significant player in the banking sector.
The financial structure of the deal entails Pacific Premier shareholders receiving 0.915 of a share of Columbia common stock for each share they own. After the merger, stockholders of Pacific Premier will retain approximately 30% of the shares in the newly formed company. Columbia’s CEO has committed to maintaining three directors from Pacific Premier on its board post-merger, suggesting an effort to integrate leadership from both institutions.
This merger is expected to create around $900 million in value, reinforcing both institutions’ positions in the banking industry. Despite Pacific Premier having experienced a decrease in assets from $22 billion to $18.1 billion in recent years, the joint venture presents a strategic opportunity for growth under the leadership of existing executive teams from both banks.
Founded in 1983 as Life Bank, Pacific Premier has undergone significant transformations over the years, especially under the tenure of CEO Steven Gardner, who has presided over numerous acquisitions since stepping into the role in 2000. This latest merger is indicative of the evolving landscape within the banking sector, where consolidation continues to shape operational dynamics and competitive strategies.
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Additional Resources
- OC Register: Pacific Premier Bancorp Layoffs
- Banking Dive: Columbia to Acquire Pacific Premier
- OC Business Journal: Columbia Banking to Buy Pacific Premier
- The Real Deal: Pacific Premier Bank Renews Lease
- Seeking Alpha: Columbia Banking to Buy Pacific Premier
- Wikipedia: Merger and Acquisition
- Google Search: Pacific Premier Bancorp Merger
- Google Scholar: Bank Mergers in the US
- Encyclopedia Britannica: Banking
- Google News: Pacific Premier Bancorp
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COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
