Umpqua Bank to merge with Columbia Bank in $5.2B, all-stock deal

Umpqua Bank and Columbia Bank have agreed to merge, bringing together two West Coast institutions which have a combined $43B in deposits. The move will help shore up the new company’s presence in Seattle, Portland, and Sacramento. Although Columbia is the acquirer, Umpqua shareholders would own 62% of the combined company.

Why should we care?
The merger represents the latest move along Tacoma, Wa.-based Columbia Bank’s expansion trajectory. In June, it announced plans to acquire Sacramento, Calif.-based Merchant Bank of Commerce, in a $266M deal that was its third acquisition this year. With Umpqua Bank and Columbia bank merging, the combined entity will be able to reach customers across a broader geographical footprint. It will also allow for product synergies. “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,” Columbia President and CEO Clint Stein said in a statement. The new company will tap Columbia's small business expertise and Umpqua's corporate banking franchise. It will allow for a more comprehensive suite of products and services for commercial, consumer and small business customers, including specialized lending products, treasury management, mortgage banking, and wealth management solutions, the companies said. Umpqua President and CEO Cort O'Haver will become executive chairman, and Stein of Columbia will be the chief executive of the combined company. The transaction is expected to close in mid-2022.