Pending merger involving Tacoma-based bank leads to sell-off of branches across West
Tacoma-based Columbia Banking System this week announced the sale of seven banks in Washington and Oregon and three in California in a divestment action as part of its merger with Portland-based Umpqua Holdings Corp.
The two banking systems announced their merger plans in October 2021. In Monday’s announcements, Columbia said the sell-offs were to “satisfy U.S. Department of Justice requirements for Columbia’s pending merger with Umpqua.”
The Washington and Oregon properties are being sold to 1st Security Bank of Washington, while the three in California are being sold to First Northern Bank, a wholly owned subsidiary of First Northern Community Bancorp.
The Washington/Oregon agreement includes “approximately $510 million in deposits and approximately $76 million in loans as well as owned real estate and fixed assets associated with the branches.”
According to the announcement, 1st Security Bank, based in Mountlake Terrace, will acquire the following branches:
▪ 506 SW Coast Highway, Newport, Oregon
▪ 425 NW Hemlock, Waldport, Oregon
▪ 98 S. Oregon St., Ontario, Oregon
▪ 715 Laneda Ave., Manzanita, Oregon
▪ 1806 Third St., Tillamook, Oregon
▪ 202 W. Main St., Goldendale, Washington
▪ 390 NE Tohomish St., White Salmon, Washington
Columbia said, “All employees will be retained by 1st Security and all branches will remain in operation after the sale.”
“We are pleased to find a partner for these branches with a reputation for service and community support and will work to provide a seamless transition for our customers and employees,” Columbia president and CEO Clint Stein said in the release. “This agreement satisfies a key DOJ requirement to proceed toward closing our transformational merger with Umpqua.”
Joe Adams, CEO of 1st Security, said in a statement, “We are excited about the proposed acquisition of these branches and the expansion of our franchise into the Oregon market.”
The California agreement with the Dixon, California-based First Northern includes “The branches, along with approximately $128 million of total deposits and approximately $4 million of total loans.”
Those sites include:
▪ 558 Market St., Colusa, California
▪ 328 Walker St., Orland, California
▪ 155 N. Tehama St., Willows, California
“Post-merger, Columbia Bank will serve the Northern California market through Umpqua Bank branches in the same communities,” the system said.
All employees will be retained by First Northern and the branches will remain in operation, according to Columbia in its announcement.
First Northern President and CEO, Louise A. Walker, said in a statement, “These markets are a natural fit for First Northern and allow us to extend our footprint north along the I-5 corridor.”
The sale of the 10 banks is expected to close the first quarter of next year, “subject to regulatory approvals and other closing conditions, including the consummation of Columbia Banking System’s merger with Umpqua,” Columbia noted.
According to the merger terms initially announced, the holding company after the merger will continue to be based in Tacoma, operating as Columbia Banking System, while Umpqua will take over branding of the banks and remain in Oregon. The company will be traded under Columbia’s ticker symbol (COLB) on the Nasdaq Stock Market.
