Umpqua Bank buys Sterling Savings Bank

Boise - The Idaho StatesmanApril 2, 2014 

Customers of Sterling Savings Bank will soon see their local branches switch to Umpqua Bank locations.

Umpqua has received regulatory permission to buy all of Sterling's 174 branches and assets, including single branches in both Boise and Meridian and 17 branches in Idaho. Sterling also has a home lending office in Boise.

The banks announced the $2 billion sale will be final April 18.

The purchase gives Umpqua its first presence in the Treasure Valley.

The merged banks will operate as Umpqua Holdings Corporation and will be headquartered in Portland, Ore. Sterling was based in Spokane, Wash.

The banks had been fairly equal competitors in the West in terms of assets , with Umpqua holding $11.6 billion in total assets and Sterling holding $10.3 billion as of Dec. 31.

Sterling spokeswoman Cara Coon said the banks would consolidate some branches in markets where both Umpqua and and Sterling have branches. She said in one Washington city, the formerly competing banks held branches that shared a parking lot. She said such situations are likely targets to close one branch or the other.

Sterling had 150 employees in Idaho and about 30 in the Treasure Valley, Coon said. Branch closures are unlikely in Idaho because Umpqua had no presence here previously.

"After the merger, Umpqua will be in five states and have nearly 400 branches," she said. "We know we'll have to consolidate some together, but since Idaho is a new market for Umpqua, the intention is to keep all of those Idaho branches open."

Sterling had the second-smallest market share of the 22 banks collecting deposits in the Treasure Valley with $35.8 million, or just 0.41 percent of the market. That tally doesn't include credit unions.

Sterling customers' account numbers would remain the same in the coming months, Coon said.

 

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