Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Quarterly Cash Dividend

On January 21, 2020, the Corporation’s Board of Directors declared a cash dividend of $0.25 per share, payable on February 14, 2020 to shareholders of record on February 3, 2020.

Pacific Premier Bancorp, Inc. and Opus Bank

On January 31, 2020, the Corporation and the Bank entered into a definitive agreement with Opus Bank, a California-chartered state bank (“Opus”), pursuant to which the Company will acquire Opus in an all-stock transaction valued at approximately $1.0 billion, or $26.82 per share, based on a closing price for the Corporation’s common stock of $29.80 on January 31, 2020. Upon consummation of the acquisition, holders of Opus common stock will have the right receive 0.90 shares of the Corporation’s common stock for each share of Opus stock. We are expected to issue approximately 34.7 million shares of our common stock in the Opus acquisition.

Opus is a California-chartered state bank headquartered in Irvine, California with $8.0 billion in total assets, $5.9 billion in gross loans and $6.5 billion in total deposits as of December 31, 2019. Opus operates 46 banking offices located throughout California, Washington, Oregon and Arizona. The transaction will increase the Company’s total assets to approximately $20 billion on a pro forma basis as of December 31, 2019.

The transaction is expected to close in the second quarter of 2020, subject to satisfaction of customary closing conditions, including regulatory approvals and approval from the Corporation’s and Opus’s shareholders. Opus directors who own shares of Opus common stock and certain executive officers and shareholders have entered into agreements with Pacific Premier, the Bank and Opus pursuant to which they have agreed, among other things, in their capacity as shareholders of Opus to vote their shares of Opus common stock and Opus preferred stock in favor of the merger agreement. For additional details, see “Item 1. Business—Recent Developments”

and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Proposed Acquisition of Opus.”