Columbia Banking System to merge with rival bank holding firm Umpqua
Columbia Banking System, the parent company of Columbia State Bank, has signed an all-stock merger deal with rival US banking holding company — Umpqua Holdings Corporation, the owner of Umpqua Bank.
The deal is aimed at creating a leading banking group on the West Coast with over $50 billion in assets under management.
As per the terms of the deal, Umpqua shareholders will exchange each of their shares in the company for 0.5958 of Columbia Banking System’s shares.
After the transaction is completed, Umpqua’s legacy shareholders will own about 62% and Columbia shareholders will hold nearly 38% of the new company.
Columbia Bank is headquartered in Tacoma. It is a state-chartered commercial bank with branches across Washington, Oregon, California, and Idaho.
Umpqua Bank, on the other hand, is a Portland, Oregon-based community bank with locations across Oregon, Washington, Idaho, California, and Nevada.
Columbia Banking System to merge with rival bank holding firm Umpqua. Photo courtesy of Steve Morgan/Wikimedia.org.
Cort O’Haver — President and CEO of Umpqua Holdings said: “This is an exciting combination that brings together two well-respected organizations and talented teams, accelerating our shared strategic objectives to create the leading regional bank headquartered in the West.
“Together, with increased scale, we’ll have the ability to provide expanded opportunities for associates and serve customers through an even more comprehensive suite of solutions.
“We’ll also be able to strengthen our ongoing investment in our communities and deliver tremendous value for shareholders. I look forward to partnering with the Columbia team to expand our market share as a combined organization.”
The enlarged bank holding company, post-merger will operate as Columbia Banking System with headquarters in Tacoma, Washington. On the other hand, the combined bank will operate as Umpqua Bank, which will be based in the greater Portland metropolitan region in Oregon.
The combined bank will have an estimated $43 billion in deposits. Its CEO will be Clint Stein, who is currently CEO and President of Columbia Banking System.
Clint Stein said: “This is a historic partnership that will enhance what both banks are able to do for clients, team members and communities, while driving significant value for our shareholders. Importantly, Umpqua shares our values and relationship-based business model.
“We believe blending the complementary expertise, services and innovative technology of both banks will position the combined organization as the preferred bank for business and families across the West.”
The deal, which is subject to regulatory approvals, shareholder approvals of both firms, and other customary conditions, is likely to close by mid-2022.