Pacific Premier Bancorp, the parent of Pacific Premier Bank, has agreed to acquire Heritage Oaks Bancorp, the parent of Heritage Oaks Bank, in a stock deal valued at about $405.6m.

Paso Robles, California-based Heritage Oaks has 12 branches in San Luis Obispo County and Santa Barbara County, as well as a loan production office in Ventura County. As of 30 September 2016, the bank managed $2bn in total assets, $1.3bn in gross loans and $1.6bn in total deposits.

Under 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.

Existing Pacific Premier shareholders will hold about 69.9% of the outstanding shares of the combined entity, while Heritage Oaks shareholders will own about 30.1% stake.

The transaction is expected to boost Pacific Premier’s total assets to about $6bn.

Pacific Premier chairman and CEO Steve Gardner said: “As the largest bank headquartered in California’s Central Coast, Heritage Oaks has built a leading market share and a high quality, low-cost core deposit base.

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“We believe this combination and our entrance into the California Central Coast market will strengthen the Pacific Premier franchise and provide us with improved growth opportunities, greater earnings power, and meaningful operational scale as a $6.0 billion asset bank.”

The deal is expected to be completed early in the second quarter of 2017, subject to regulatory and shareholders’ approvals.