The parent company of Portland-based Umpqua Bank is selling to Columbia Banking System in a $5.1 billion deal that will keep the Umpqua brand and split the business’ headquarters between Tacoma and the Portland area.
Columbia Bank will have $43 billion in deposits after the deal, $16 billion in Oregon. Columbia CEO Clint Stein will run the combined business from Tacoma, while Umpqua CEO Cort O’Haver will be the company’s chairman.
Umpqua is Oregon’s largest bank and is bigger than Columbia; its shareholders will own 62% of the combined business. Umpqua shares fell 5.2% on the news, $1.09, to $19.82. Columbia’s shares fell 14.7%, to $33.49.
The companies said they are combining to capitalize on Columbia’s small-business focus and Umpqua’s corporate banking. They will call their holding company Columbia Banking System.
The corporation’s headquarters will be in Tacoma, but the companies said the combined bank will use the Umpqua name and will have its banking headquarters “in the greater Portland metropolitan area.”
Umpqua’s current headquarters are in downtown Portland. It wasn’t immediately clear what kind of corporate operations will remain in the “greater” Portland area, or where they will be.
The combined bank will have operations in Oregon, Washington, Idaho, California and Nevada.
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