Doubles Its Washington Presence;
Second FDIC-assisted Acquisition in 2010
PORTLAND, Ore.--(BUSINESS WIRE)--
Holdings Corporation (NASDAQ: UMPQ) announced that its subsidiary,
Umpqua Bank, has acquired the banking operations of Rainier Pacific
Bank, Tacoma, Wash., in a purchase and assumption agreement with the
Federal Deposit Insurance Corporation (FDIC). This is the second
FDIC-assisted transaction for Umpqua Bank this year following its
January 22 acquisition of Seattle-based EvergreenBank.
As of Dec. 31, 2009, Rainier Pacific Bank had $718 million in assets and
$446 million in deposits, including approximately $327 million of core
deposits. Rainier Pacific Bank's$564 million in loans are subject to a
loss-sharing agreement with the FDIC. Umpqua Bank expects the
acquisition to be immediately accretive to operating earnings per share.
The transaction will increase Umpqua's assets to approximately $10.5
billion and deposits to approximately $8.2 billion, based on Umpqua's
Dec. 31, 2009 balances.
"We are pleased to welcome former Rainier Pacific Bank customers to the
Umpqua Bank network of 176 neighborhood locations from Seattle to San
Francisco," said Ray Davis, chief executive officer of Umpqua Holdings
Corporation. "Former Rainier Pacific Bank customers will be able to bank
as usual during regular business hours. Their deposits are safe,
accessible and remain FDIC insured to the maximum provided by law. We
anticipate a smooth transition, and are pleased to expand our presence
in the Puget Sound marketplace and extend our long term vision for
growth in this area."
Today's acquisition announcement follows a decision by the Washington
Department of Financial Institutions to close Rainier Pacific Bank and
have the FDIC accept the receivership.
Umpqua Bank participated in a competitive bid process with the FDIC. The
accepted bid included a 1.04 percent deposit premium on non-brokered
deposits, and a negative bid of $13.1 million on assets acquired.
Thirteen of Rainier Pacific Bank's locations will open tomorrow from
9:00 a.m. to 3:00 p.m. as Umpqua Bank stores. All 14 locations will be
open Monday, March 1, increasing Umpqua's network to 176 locations
throughout Northern California, Oregon and Washington. Customers of
Rainier Pacific Bank are now customers of Umpqua Bank and deposits will
continue to be insured by the FDIC up to the maximum permitted by law.
Umpqua Bank is working closely with former Rainier Pacific Bank
employees to ensure that customers will be able to conduct business as
usual, with full access to deposits, loans, ATM/Debit cards, online
banking, automatic bill pay service and other electronic banking
services. Checks drawn on Rainier Pacific Bank will continue to be
processed. Loan customers should continue to make their payments as they
Umpqua Bank expects to convert Rainier Pacific Bank's consumer banking,
home lending, small business, investment and insurance services to the
Umpqua Bank brand over the next several months. Umpqua Bank and Rainier
Pacific Bank customers will be able to access the combined network of
194 ATMs without fees within two weeks. Rainier Pacific Bank branches
will be added to Umpqua Bank's network of 162 Northern California,
Oregon and Washington locations.
Umpqua Bank representatives are on-site at all former Rainier Pacific
Bank locations to assist in the transition, address customer needs and
begin integrating operations. For additional information, customers can
also visit www.umpquabank.com
or call the Umpqua Bank customer care team at 866-486-7782.
About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua
Bank, an Oregon-based community bank recognized for its
entrepreneurial approach, innovative use of technology, and distinctive
banking solutions. Umpqua Bank has 176 locations between San Francisco,
Calif. and Seattle, Wash., along the Oregon and Northern California
Coast and in Central Oregon. Umpqua Holdings also owns a retail
brokerage subsidiary, Umpqua
Investments Inc., which has locations in Umpqua Bank stores and in
dedicated offices in Oregon. Umpqua's Private Bank Division serves high
net worth individuals and non-profits providing customized financial
solutions and offerings. Umpqua Holdings Corporation is headquartered in
Portland, Ore. For more information, visit www.umpquaholdingscorp.com.
This press release includes forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which management believes are a benefit
to the reader. These statements are necessarily subject to risk
and uncertainty and actual results could differ materially due to
various risk factors, including those set forth from time to time in our
filings with the SEC. You should not place undue reliance on
forward-looking statements and we undertake no obligation to update any
such statements. In this press release we make forward-looking
statements about the anticipated favorable effect of this acquisition on
our earnings per share and the benefits of completing the integration of
Rainier Pacific Bank into Umpqua Bank. Specific risks that could cause
results to differ from forward-looking statements are set forth in our
filings with the SEC and include, without limitation, our ability to
successfully integrate these operations without undue disruption or loss
of customers and without unplanned operational expenses or credit losses.
Map of Store Locations Available
Source: Umpqua Holdings Corporation