Columbia Banking System, the parent company of Columbia Bank, and Umpqua Holdings Corporation, the parent company of Umpqua Bank, jointly announced the Federal Deposit Insurance Corporation (FDIC) has approved the previously announced combination of the two companies. The FDIC approval was the final outstanding regulatory approval necessary to complete the combination.
The merger is expected to be completed by the end of February, subject to the satisfaction or waiver of the remaining closing conditions set forth in the merger agreement governing the transaction. Columbia and Umpqua have agreed to extend the outside date under the merger agreement to March 11. Upon closing, the combined company will become one of the largest banks headquartered in the West, with over $50 billion in assets and offices in eight western states that serve customers in all 50 states.
The two companies have received regulatory approvals to complete the combination from the Board of Governors of the Federal Reserve System; the FDIC; the Oregon Department of Consumer and Business Services, Division of Financial Regulation; and the Washington State Department of Financial Institutions. As previously announced, all required shareholder approvals related to the proposed combination were received on Jan. 26, 2022. Columbia previously announced on Nov. 7, 2022, that Columbia Bank entered into definitive agreements to divest the 10 branches identified by the U.S. Department of Justice, Antitrust Division, which was a condition for obtaining certain regulatory approvals.
As reported by Equipment Finance Advisor, the companies agreed to merge in October 2021.
"Today's announcement marks the culmination of a tremendous amount of work from associates across both organizations. I couldn't be more proud of their collective effort as we look ahead to the completion of our merger," said Clint Stein, President and CEO of Columbia. "We are excited to advance to the last phase of our combination and achieve our vision of creating a leading Western regional bank."
"Our combination, and all the potential it holds to unlock value for our customers, communities, associates and shareholders, is one step closer to becoming reality," said Cort O'Haver, President and CEO of Umpqua. "We are thrilled to complete this combination and begin moving forward as one bank."
Post-closing, the holding company will operate under the Columbia Banking System, Inc. name and will be headquartered in Tacoma, WA. The bank will operate under the Umpqua Bank name and will be headquartered in Lake Oswego, OR. Other major subsidiaries and divisions will include Columbia Trust Company, Columbia Wealth Advisors and Columbia Private Bank, which will operate under the umbrella 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.