Columbia Banking System and Umpqua Holdings Corporation Complete Merger
Columbia Banking System, Inc. ("Columbia") (Nasdaq: COLB), the parent company of Columbia Bank, and Umpqua Holdings Corporation ("Umpqua"), the parent company of Umpqua Bank, announced today the closing of their previously announced merger, combining the two premier banks in the Northwest to create one of the largest banks headquartered in the West.
The new institution now ranks as a top-30 U.S. bank and offers a combination of robust commercial, small business and consumer capabilities, expertise, local decision-making and a personalized approach to customer service. In addition to providing expanded capabilities and enhanced products and services for consumers and businesses of all sizes, the bank retains Columbia's and Umpqua's long-standing community focus. The combined bank previously announced an $8.1 billion commitment over five years towards enhancing affordable homeownership access, small business formation and growth, and philanthropic and community development initiatives in communities across its eight-state footprint.
"Bringing together the Northwest's leading banks is a historic achievement and holds enormous potential to benefit our associates, customers, and communities, as well as to drive our company's long-term growth. I'm especially proud of our associates whose hard work, perseverance, and truly collaborative spirit made this combination of like-minded banks possible," said Clint Stein, CEO of Columbia and Umpqua Bank. "As we look to the future and the full integration of our new company, we remain laser focused on leveraging our scale advantages to provide a premium banking experience for our customers."
"Today marks the beginning of an exciting new chapter for our company," said Cort O'Haver, Executive Chair of the Board of Columbia. "We have tremendous opportunity to deliver enhanced shareholder returns by building upon our combined bank's commitment to the success and prosperity of all our stakeholders."
The combined organization has more than $50 billion in assets with approximately $37 billion in loans and $45 billion in deposits throughout an eight-state footprint that spans some of the most dynamic commercial markets and vibrant local economies in the western U.S. All branches of the combined company will operate under the Umpqua Bank banner once the integration is completed. Umpqua Bank's corporate headquarters remain in Lake Oswego, Oregon and the holding company, Columbia Banking System, Inc., remains headquartered in Tacoma, Washington. In addition to Umpqua Bank, the company consists of other major subsidiaries and divisions including Columbia Trust Company, Columbia Wealth Advisors and Columbia Private Bank, which operate under the banner of Columbia Wealth Management, as well as Financial Pacific Leasing, Inc. The combined company will trade under Columbia's ticker symbol (COLB) on the Nasdaq Stock Market.
Customers Should Continue to Bank as They Normally Do
Umpqua Bank will initially operate under both the Umpqua Bank and Columbia Bank brands, and customers will continue to conduct business through their respective Umpqua and Columbia branches, websites, and mobile apps. The company expects to combine its systems and services in the first quarter of 2023. Umpqua Bank customers can find additional information at www.umpquabank.com/columbia, and Columbia Bank customers can find additional information at www.columbiabank.com/umpqua.
Board of Directors
The combined company's Board of Directors consists of 14 members, with seven directors from Columbia and seven directors from Umpqua:
- Cort L. O'Haver, Executive Chair
- Craig D. Eerkes, Lead Independent Director
- Mark A. Finkelstein
- Eric S. Forrest
- Peggy Y. Fowler
- Randal L. Lund
- Luis F. Machuca
- S. Mae Fujita Numata
- Maria M. Pope
- John F. Schultz
- Elizabeth W. Seaton
- Clint E. Stein
- Hilliard C. Terry, III
- Anddria Varnado
At the effective time of the merger on February 28, 2023, each share of Umpqua common stock was converted into the right to receive 0.5958 of a share of Columbia common stock, with Umpqua shareholders receiving cash in lieu of fractional shares. Former Umpqua shareholders collectively represent approximately 62% of the combined company. Shares of Umpqua ceased trading prior to the opening of the Nasdaq Stock Market on March 1, 2023.