Columbia Banking System Announces Agreement to Sell Seven Washington and Oregon Branches to 1st Security Bank
Branches are divested to meet US Department of Justice (DOJ) requirements regarding Columbia’s ongoing merger with Umpqua
/EIN News/ — TACOMA, Wash. and MOUNTLAKE TERRACE, Wash., Nov. 07, 2022 (GLOBE NEWSWIRE) — Columbia Banking System, Inc. (NASDAQ: COLB), the parent company of Columbia Bank (“Columbia”), has today announced that Columbia has entered into a buy-and-take agreement to sell seven branches in Washington and Oregon to 1st Security Bank of Washington (“1st Security”), the wholly-owned subsidiary of FS Bancorp, Inc. (NASDAQ: FSBW).
Columbia and 1st Security will provide additional information to customers of branches to be divested. The agreement includes approximately $510 million in deposits and approximately $76 million in loans as well as real estate and fixed assets associated with the branches. The branches are being divested to satisfy commitments made to the US Department of Justice (“DOJ”) in connection with Columbia Banking System’s impending merger with Umpqua Holdings Corporation (“Umpqua”). The sale is expected to close in the first quarter of 2023, subject to regulatory approvals and other closing conditions, including the completion of Columbia Banking System’s merger with Umpqua. All employees will be retained by 1st Security and all branches will remain in operation after the sale.
“We are thrilled to find a partner for these branches with a reputation for service and community support and will work to ensure a seamless transition for our customers and employees,” said Clint Stein, President and CEO of Columbia. . “This agreement satisfies a key DOJ requirement to proceed with the closing of our transformational merger with Umpqua.”
Joe Adams, CEO of 1st Security, said, “We are excited about the proposed acquisition of these branches and the expansion of our franchise into the Oregon market. As experienced acquirers, we are committed to providing our new customers and employees with the best possible transition from Columbia and look forward to providing our personalized banking services to these communities for years to come.
1st Security Bank will acquire the following branches:
- 506 Southwest Coast Road, Newport, Oregon
- 425 Northwest Hemlock, Waldport, Oregon
- 98 South Oregon Street, Ontario, Oregon
- 715 Laneda Ave, Manzanita, Oregon
- 1806 Third Street, Tillamook, Oregon
- 202 West Main Street, Goldendale, Washington
- 390 Tohomish Street Northeast, White Salmon, Washington
Based in Tacoma, Washington, Columbia Banking System, Inc. (NASDAQ: COLB) is the holding company of Columbia Bank, a full-service commercial bank licensed in the State of Washington with offices in Washington, Oregon, California, Idaho and Utah. The bank was named one of Puget Sound Business Journal “Washington’s Best Workplaces” more than 10 times. Columbia was named on the Forbes 2022 list of “America’s Top Banks” marking 11 consecutive years on the publication’s list of top financial institutions. More information about Columbia can be found on its website at www.columbiabank.com.
About 1st Security
1st Security Bank of Washington, Member FDIC and Equal Housing Lender, provides loan and deposit services to customers at its twenty-one branches, and mortgage services at each branch as well as loan offices in the greater Puget Sound area , Vancouver and the Tri-Cities. FS Bancorp, Inc., a Washington corporation, (NASDAQ: FSBW) is the Bank’s holding company. The bank was ranked the top community bank nationally in the Bank Manager’s Ranking Banking 2022 study, as well as the top management team of all banks surveyed nationally. 1st Security is Best-in-Class Bank in Puget Sound Business Journals’ “Washington’s Best Workplaces” from 2015-2022 and named one of American Banker’s “Best Banks to Work For” from 2017-2021. information, visit the 1st Security Bank website at www.fsbwa.com.
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Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which may be identified by words such as “may”, “expected”, “anticipate”, “continue” or other words comparable. In addition, all statements other than statements of historical fact that address activities that Columbia predicts or anticipates will occur or may occur in the future are forward-looking statements. Readers are encouraged to read Columbia Banking System’s Securities and Exchange Commission reports, in particular its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for a significant disclaimer as to why actual results may vary. considerably from those anticipated by management.