US-based Pacific Premier Bancorp has agreed to acquire Grandpoint Capital in an all-stock deal valued at approximately $641.2m.

Pacific Premier Bancorp is the holding company of Pacific Premier Bank, while Grandpoint Capital is the holding company of Grandpoint Bank.

California-based Grandpoint Capital had $3.2bn in total assets, $2.4bn in gross loans and $2.4bn in total deposits as at 31 December 2017. Grandpoint Bank manages 14 regional offices in Southern California, Arizona and Vancouver, Washington.

Under the terms of the deal, for each share of Grandpoint common stock, its shareholders will get 0.4750 of a share of Pacific Premier common stock.

In the merged company, existing Pacific Premier’s shareholders will own about 75% stake while Grandpoint’s shareholders will own the remaining 25% stake.

The transaction, which is scheduled to be completed in the third quarter of 2018 after regulatory approvals, will boost Pacific Premier’s total assets to nearly $11.7bn on a pro forma basis.

Pacific Premier chairman, president and CEO Steven Gardner said: “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.

“The expansion of our organisation remains a key focus of our long-term strategic plan as we build Pacific Premier into the leading commercial bank headquartered in Southern California. With this acquisition, we will surpass $10bn in total assets, which we believe will allow us to further leverage our operational scale.

“Our increased market presence in and beyond Southern California will allow us to take advantage of organic and strategic growth opportunities that we anticipate will further enhance shareholder value.”