Umpqua and Columbia Banks merge under the Umpqua brand
The combined company will be the third largest regional bank on the West Coast, retaining the Umpqua name.
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PORTLAND, Oregon (PORTLAND TRIBUNE) – Columbia State Bank and Umpqua Bank announced their merger on October 12. The respective holding companies of the banks have entered into a definitive agreement under which the companies will combine in a consolidation of shares.
FILE – Umpqua Bank operates a location on Northwest Norman Avenue in Gresham Station.Umpqua shareholders will receive 0.5958 Columbia shares for each Umpqua share they own. Upon completion of the transaction, Umpqua shareholders will own approximately 62% and Columbia shareholders will own approximately 38% of the combined company. Upon completion of the transaction, the combined organization will be a leading West Coast franchise with over $ 50 billion in assets.
Cort O’Haver, President and CEO of Umpqua, said, âTogether, with increased scale, we will have the ability to offer expanded opportunities to associates and serve clients through an even more suite of solutions. more complete. We will also be able to strengthen our continued investment in our communities and deliver significant shareholder value.
The two banks claim common values.
Columbia President and CEO Clint Stein said, âWe believe that the combination of the complementary expertise, services and innovative technologies of the two banks will position the combined organization as the preferred bank for businesses and consumers. families across the West. We look forward to bringing our businesses together to better serve all stakeholders. “
The combined company will be led by executives from Columbia and Umpqua. O’Haver will serve as executive chairman and Stein will serve as CEO. Chris Merrywell will be president of consumer banking, Tory Nixon president of commercial banking and Ron Farnsworth chief financial officer. Upon closing of the transaction, the board of directors of the combined company will be comprised of seven directors from Columbia and Umpqua, with Craig Eerkes, the current president of Columbia, serving as lead independent director. The combined holding company will operate as Columbia Banking System, Inc. and be headquartered in Tacoma, Washington. The combined bank will operate as Umpqua Bank and be headquartered in the greater Portland metropolitan area.
In a press release, the companies touted the benefits of the merger.
“A West Coast Franchise Like No Other: The combined company will be the leading regional bank on the West Coast with $ 43 billion in deposits, including $ 16 billion in deposits in Oregon, $ 15 billion in Washington, 10 billion in California and $ 2 billion collectively in Idaho and Nevada. The transaction strengthens the combined company’s competitive position in attractive high-growth markets, including a leading market share in metro Seattle, Portland and Sacramento.
âFocus on Commercial Lending Complemented by Highly Recognized Retail Franchise: Through this combination, Umpqua and Columbia will build on the strong commercial and retail foundations of each company to create an improved and more competitive financial institution. Combined banking’s mid-market focus will be enhanced by Columbia’s expertise in small business and Umpqua’s business banking franchise. The combined company’s low-cost core deposit base will provide price stability in rising rate environments, and its differentiated technology infrastructure will support a larger institution built for commercial and retail clients.
“Potential to unlock significant growth through business diversification and a larger balance sheet: The combined organization will offer a more comprehensive range of products and services to business, personal and small business customers, including loan products specialist, cash management, mortgage banking and wealth management. solutions. This transaction will result in a more diversified revenue mix with approximately $ 33 billion in loans and a strong commission-based revenue stream.
âA strong technological base combined with a larger scale improves the competitive position and customer offerings: the combination will create additional capacity for strategic technology investments to provide an improved offer to customers. Together, Columbia and Umpqua will leverage their existing investments and capabilities to create new customer experiences and accelerate their growth.
âStrong governance, proven leadership: The combined leadership team has significant experience in leading and scaling institutions. Rooted in many of the same markets, companies share a deep commitment to employees, customers and the communities they serve. Columbia and Umpqua strive to combine the talent and strong interpersonal cultures of both companies.
âSupporting Communities and Employees: The long-standing commitments of both companies to serving their communities will remain at the heart of the combined organization. Columbia and Umpqua will together contribute $ 20 million to the combined company’s charitable foundation after the transaction closes. “
Umpqua stock closed at $ 19.93 on Tuesday, October 12, down 4.69%.