Sterling Financial Corp., the Spokane-based parent of Sterling Bank, and Portland-based Umpqua Holdings Corp. announced this afternoon that they had entered into a definitive agreement for Umpqua to acquire Sterling. The total value of the planned transaction is $2 billion.
Boards of directors for both organizations unanimously have approved the transaction, and it's expected to be completed in the first half of 2014. Upon completion, all Sterling operations will operate under the Umpqua name and brand, and Umpqua will remain based in Portland.
The combined organization will have about $22 billion in assets, $15 billion in loans, and $16 billion in deposits. In all, it will have about 5,000 employees and 394 locations in five states: Washington, Oregon, Idaho, California, and Nevada.
Ray Davis will continue to be president and CEO of Umqua, and Sterling President and CEO Greg Seibly will join Umpqua as co-president.
Under the terms of the acquisition, Sterling shareholders will receive 1.7 shares of Umpqua common stock and $2.18 cash for each share of Sterling common stock.