Will create West Coast’s largest community bank with 394 locations in five states
“It’s going to be a great merger of two great community banks,” said Helen Casey, manager of the Oroville Branch of Sterling Savings Bank.
PORTLAND, Ore. & SPOKANE, Wash.- Umpqua Holdings Corporation and Sterling Financial Corporation have entered into a definitive agreement in which Sterling will merge with and into Umpqua. The transaction will have a total value of approximately $2.0 billion.
The merger will result in the West Coast’s largest community bank with expanded geographic reach. The combined organization will have approximately $22 billion in assets, $15 billion in loans and $16 billion in deposits, with 5,000 associates and 394 stores across five states – Oregon, Washington, Idaho, California and Nevada. Umpqua and Sterling have also agreed to establish and fund a $10 million community foundation, underscoring their mutual commitment to serving their communities.
Upon completion of the merger, the company will operate under the Umpqua Bank name and brand. The combined company will continue to deliver the high-touch level of service that Umpqua and Sterling customers expect, with an expanded branch and ATM network and a broad range of products and expertise in retail, small business, private and corporate banking; asset and wealth management; and securities brokerage.
Umpqua Holdings Corporation will continue to be led by Ray Davis as president and CEO. Sterling president and CEO Greg Seibly will join Umpqua Bank as co-president, with Umpqua Bank co-president Cort O’Haver serving in the same capacity.
“Together, Umpqua and Sterling will create something unique in the financial services industry, an organization that offers the products and expertise of a large bank but delivers them with the personal service and commitment of a community bank,” said Davis. “With our size, shared cultures and financial strength, our combined organization will be uniquely positioned to deliver value for our associates, customers, communities and shareholders. We look forward to starting the process of bringing our companies together.”
Seilby adds, “Sterling has emerged from its 2010 recapitalization a stronger, more profitable bank. Over the past ten quarters we have consistently demonstrated a trend of improved profitability because of our employees’ unwavering commitment to their customers and their communities. We admire Umpqua’s shared commitment to community banking and look forward to working with them to create one of the strongest, most innovative community banks in the country.”
The boards of directors of both companies have unanimously approved the transaction. Upon completion, the combined company’s board will have 13 directors, comprised of nine representatives from Umpqua and four representatives from Sterling. Peggy Fowler will continue as board chair.
Completion is expected during the first half of 2014, and is subject to approval by each company’s shareholders, regulatory approvals and other customary closing conditions.
“It’s going to be a great merger of two great community banks,” adds Helen Casey, manager of the Oroville Branch of Sterling Savings Bank.
About Umpqua Holdings Corporation
Umpqua Holdings Corporation (Nasdaq: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has locations between San Francisco, California, and Seattle, Washington, along the Oregon and Northern California Coast, Central Oregon and Northern Nevada. Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Private Bank serves high net worth individuals and non-profits, providing trust and investment services. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquaholdingscorp.com.
About Sterling Financial Corporation
Sterling Financial Corporation (Nasdaq: STSA) of Spokane, Washington, is the bank holding company for Sterling Savings Bank, a Washington state chartered and federally insured commercial bank. Sterling Savings Bank does business as Sterling Bank in Washington, Oregon and Idaho and as Sonoma Bank and Borrego Springs Bank in California. The bank offers banking products and services, mortgage lending, and trust and investment products to individuals, small businesses, corporations and other commercial organizations. As of June 30, 2013, Sterling Financial Corporation had assets of $9.94 billion and operated depository branches in Washington, Oregon, Idaho and California. Visit Sterling Financial Corporation’s website at www.sterlingfinancialcorporation.com.