KBRA Comments on Pacific Premier Bancorp and Plaza Bancorp Merger

8/10/17

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has released a comment on Pacific Premier Bancorp, Inc. and Plaza Bancorp’s merger. The report makes the following key points:

  • Irvine, California based Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) and Plaza Bancorp (OTCPK:PLZZ) announced a definitive agreement and plan of merger, with Pacific Premier Bancorp, Inc. as the surviving entity.
  • In KBRA’s opinion, the all-stock transaction is neutral to the ratings of Pacific Premier, Bancorp, Inc. and consistent with PPBI’s strategic goals of expanding in the Southern California market through disciplined acquisitions.
  • KBRA acknowledges that there is a potential risk related to system integration given the relatively large size of the acquired institution. Nonetheless, the acquisition risk is largely mitigated by PPBI’s solid track record of successful acquisitions as well as the retention of key relationship managers from Plaza.
  • The transaction is expected to result in improved operating performance and financial condition for PPBI over time. The deal should be accretive to earnings, boost PPBI’s net interest margin incrementally, and result in significant cost savings on Plaza’s noninterest expense. Changes in the portfolio mix are essentially positive, and the capital profile for the combined entity should remain solid.

To view the full comment, please click here.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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