Banking

Umpqua, Columbia combining to develop $50 billion-asset West Coast bank

Columbia Banking System in Tacoma, Washington, and Umpqua Holdings in Portland, Oregon, are combining in an offer that would develop a leading West Coast franchise with approximately $50 billion of possessions, $43 billion of deposits and a network of branches extending from Washington to Nevada.

The smaller sized Columbia is technically the acquirer, however Umpqua investors would own 62% of the combined business, and the banking system would run under the Umpqua Bank brand name and be based in Portland, the business stated in a press release early Tuesday. The holding business would run as Columbia Banking System and have its head office in Tacoma.

Umpqua Bank will be the making it through brand name after the merger in between Umpqua Holdings and Columbia Banking System is finished next year.

Lara Swimmer

Umpqua’s chairman and CEO, Cort O’Haver, would be executive chairman and Clint Stein, Columbia’s president and CEO, would be hold the exact same titles at the combined business.

“This is an amazing mix that unites 2 well-respected companies and gifted groups, accelerating our shared tactical goals to develop the prominent local bank headquartered in the West,” O’Haver stated in a press release. “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 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,” Stein stated.

The offer would integrate 2 business that have actually grown mainly through acquisitions over the previous 20 years.

Umpqua has actually made more than 20 acquisitions given that 2000 and now has approximately $30.3 billion of possessions and more than 230 branches in Oregon, Washington, Idaho, California and Nevada. Columbia has actually rolled up almost a lots banks ever since and has $18 billion of possessions and more than 150 branches in Washington, Oregon and Idaho.

The business stated they anticipate to minimize yearly overhead by as much as $100 million. That cost savings would likely take place mainly by integrating back-office operations and combining overlapping branches.

Under regards to the contract, Umpqua investors would get 0.598 shares of Columbia stock for each share owned. Based on Monday’s closing rates, the cost exercises to $23.44 per share, or about $5.2 billion.

Keefe, Bruyette & Woods recommended Columbia on the offer, and Sullivan & Cromwell is the bank’s legal counsel. Umpqua was recommended by J.P. Morgan Securities, and Wachtell, Lipton, Rosen & Katz is functioning as its legal counsel.

The offer is anticipated to close in mid-2022.



Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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