Regional banking firms announce merger. Here’s how it will impact Whatcom County
The parent companies of Columbia Bank and Umpqua Bank on Tuesday, Oct. 12, announced plans to merge.
Tacoma-based Columbia Banking System, Inc., the parent company of Columbia Bank, and Portland, Oregon,-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 bank branches in Blaine, Point Roberts and Bellingham’s Barkley district. According to the FDIC, Umpqua’s Whatcom County deposits totaled just under $168.8 million at the end of June, which is about 3% of the total market share. Umpqua opened its Bellingham retail branch in 2014.
Columbia Bank has one branch locally, in downtown Bellingham near the YMCA. At the end of June its local deposits totaled $66.4 million, about 1% of the total Whatcom market share. The bank first entered the market in 2007, opening a branch in the Cordata area. It moved the branch downtown in 2011.
The banks will operate under the Umpqua Bank name and will be based in the greater Portland metro area. The combined holding company, with headquarters in Tacoma, will operate under the Columbia Banking System, Inc. name. The company will trade under Columbia’s ticker symbol (COLB) on the Nasdaq Stock Market.
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.
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 transaction is expected to close in mid-2022.
Columbia has locations in Washington, Oregon, Idaho and California, while Umpqua has locations in Oregon, Washington, California, Idaho and Nevada.
This story was originally published October 12, 2021 at 10:58 AM with the headline "Regional banking firms announce merger. Here’s how it will impact Whatcom County."
