TACOMA — The parent companies of Columbia Bank and Umpqua Bank on Tuesday announced plans to merge.
Tacoma-based Columbia Banking System, Inc., the parent company of Columbia Bank, and Portland, Ore.-based Umpqua Holdings Corp., the parent company of Umpqua Bank, said they were entering into an agreement joining in an all-stock combination.
Umpqua Bank has seven locations in Clark County; Columbia Bank has three.
Cort O’Haver, president and CEO of Umpqua, will serve as the executive chairman, and Clint Stein, president and CEO of Columbia, will serve as CEO.
According to the announcement: “Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Umpqua shareholders will receive 0.5958 of a share of Columbia stock for each Umpqua share they own. Upon completion of the transaction, Umpqua shareholders will own approximately 62 percent and Columbia shareholders will own approximately 38 percent of the combined company.”
The combined operation, once completing the transaction, will have more than $50 billion in assets.
Stein said in a statement: “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. We look forward to bringing our companies together to better serve all stakeholders.”
O’Haver 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.”
According to the announcement, the combined company will have $43 billion in deposits, including $16 billion of deposits in Oregon, $15 billion in Washington, $10 billion in California and $2 billion collectively in Idaho and Nevada.
The combined operation also plans to contribute $20 million “to the charitable foundation of the combined company following the close of the transaction,” according to the announcement. The holding company, with headquarters in Tacoma, will operate under the Columbia Banking System, Inc. name. The banks will operate under the Umpqua Bank name and will be based in the Portland metro area.
The company will trade under Columbia’s ticker symbol (COLB) on the Nasdaq Stock Market.