The proposed merger between Columbia Banking System and Umpqua Holdings received the last regulatory green light it needed to become final, the companies said Monday.
The Federal Deposit Insurance Corp. (FDIC) approved the $5.2 billion transaction, which the banks now expect to close by the end of February, they said. Columbia and Umpqua extended the merger completion date on their contract to March 11.
"Today's announcement marks the culmination of a tremendous amount of work from associates across both organizations," Columbia CEO Clint Stein said Monday. "We are excited to advance to the last phase of our combination and achieve our vision of creating a leading Western regional bank.”
After completion, the bank will carry the Umpqua name, but the holding company will keep the Columbia banner. The combined bank will count more than $50 billion in assets, with branches in Oregon, Washington, California, Nevada, and Idaho.
"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," Umpqua CEO Cort O’Haver said. "We are thrilled to complete this combination and begin moving forward as one bank.”
The Columbia-Umpqua deal is the largest pending U.S. banking tie-up that doesn’t involve a Canadian buyer. TD said last month it hopes to close its $13.4 billion acquisition of Memphis, Tennessee-based First Horizon by April. BMO, meanwhile, said it was aiming to finalize its $16.3 billion purchase of Bank of the West by the first quarter of 2023 — leaving open to interpretation whether that meant the bank’s first fiscal quarter, which ends Jan. 31, or March-ending calendar quarter.
The Federal Reserve approved the Columbia-Umpqua combination in October. Columbia in November outlined its divestment of 10 branches to satisfy Justice Department concerns related to competition.
Nasdaq, meanwhile, flagged Umpqua this month as being out of compliance with a requirement that listed companies hold annual shareholder meetings, American Banker reported Tuesday. Umpqua agreed to submit a plan to comply with the rule by a Feb. 19 deadline.
The bank reportedly delayed its shareholder meeting because of the Columbia deal. The merger previously received sign-off from state regulators in Washington and Oregon.
