BY Fraser Tennant
In a deal that creates the leading regional bank on the US West Coast, Columbia Banking System, Inc. and Umpqua Holdings Corporation are to merge in an all-stock combination valued at $8.2bn.
Under the terms of the definitive agreement, Umpqua shareholders will receive 0.5958 of a share of Columbia stock for each Umpqua share they own. Umpqua shareholders will own approximately 62 percent and Columbia shareholders will own approximately 38 percent of the combined company.
Upon completion, the combined company will be the West Coast's leading regional bank with $43bn in deposits, including $16bn of deposits in Oregon, $15bn in Washington, $10bn in California and $2bn collectively in Idaho and Nevada.
In addition, the deal strengthens the combined company's competitive position in high-growth, attractive markets, including leading market share in the Seattle, Portland and Sacramento metro areas.
"This combination brings together two well-respected organisations and talented teams, accelerating our shared strategic objectives to create the leading regional bank headquartered in the West,” said Cort O'Haver, president and chief executive of Umpqua. “Together, with increased scale, we will have the ability to provide expanded opportunities for associates and serve customers through an even more comprehensive suite of solutions.”
The transaction has been unanimously approved by the boards of directors of both companies.
"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,” said Clint Stein, president and chief executive of Columbia Banking System. “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 combined company will be led by an executive team composed of leaders from both Columbia and Umpqua.
The transaction is expected to close in mid-2022, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approvals from each company's shareholders.
Mr O’Haver concluded: “I look forward to partnering with the Columbia team to expand our market share as a combined organisation.”
News: Columbia Banking, Umpqua Bank to Merge in $5 Billion Deal