Post-transaction and subsequently integration, the new financial service company will have nearly $22bn in assets, $15bn in loans and $16bn in deposits, with 5,000 associates and 394 stores throughout five states, including Oregon, Washington, Idaho, California and Nevada.
Based on the terms of definitive agreement, the combined entity will operate under the Umpqua Bank brand and remain offering an array of products and expertise in retail, small business, private and corporate banking, asset and wealth management and securities brokerage.
Sterling president and CEO Greg Seibly will assume the designation of co-president at Umpqua Bank, while current co-president Cort O’Haver will continue to serve in the same capacity.
Umpqua president and CEO Ray Davis said that the united company will be able to deliver the products and expertise of a large bank with the personal service and commitment of a community bank.
For each share of Sterling common stock, its shareholders will receive 1.671 shares of Umpqua common stock and $2.18 cash, based on the terms of the transaction.
The transaction, which has been unanimously endorsed by the boards of directors of both companies, is likely to conclude during the first half of 2014, pending receipt of regulatory approvals and other customary closing conditions.
JP Morgan Securities was hired to offer financial advice and provided a fairness opinion to Umpqua’s board, and Wachtell, Lipton, Rosen & Katz served as legal counsel to Umpqua.
Sandler O’Neill + Partners, acted as financial advisor and provided a fairness opinion to Sterling’s board, and Davis Polk & Wardwell served as legal counsel to Sterling.
