Pacific Premier Bancorp, the parent of Pacific Premier Bank, has secured the go-ahead from the board of governors of the Federal Reserve System and the California Department of Business Oversight for its acquisition of Heritage Oaks Bancorp, the parent of Heritage Oaks Bank.

The deal, announced in December 2016, is valued at about $405.6m. It is expected to be completed late in the first quarter or early in the second quarter of 2017, subject to shareholders’ approvals.

At the time of announcing the transaction, the companies said that existing Pacific Premier shareholders will own about 69.9% of the combined entity while Heritage Oaks shareholders will own about 30.1%.

The terms of the transaction, holders of Heritage Oaks stock will receive 0.3471 shares of Pacific Premier stock for each share of Heritage Oaks.

Pacific Premier Bancorp chairman, president and CEO Steve Gardner said: “We are pleased to have received all of the required regulatory approvals for our acquisition of Heritage Oaks.

“We believe that the combination of Pacific Premier and Heritage Oaks will create one of the most attractive commercial banks in California with significant opportunities to enhance the banking experience for our customers and drive increased value for our shareholders.”