A deal to create one of the largest banks on the West Coast has yet to receive regulatory approval, but both parties are sticking to their plan for a systems conversion early next year.
Columbia Banking System in Tacoma, Washington, and Umpqua Holdings in Portland, Oregon, believe a conversion during the first quarter of 2023 remains on the table, "assuming that those two other regulatory approvals come in," Columbia CEO Clint Stein said on a call with analysts Thursday. The banks are waiting on green lights from the Federal Deposit Insurance Corp. and the Federal Reserve.
When the banks announced the merger last October, they
The deal, if approved, would create a powerhouse bank in the Pacific Northwest, with assets of about $52 million and deposits of more than $44 million. It would sew together Umpqua's consumer brand and Columbia's commercial banking specialties, and give Columbia, which is the acquirer, a branch network stretching from Washington to Nevada.
While awaiting approval, the banks have had to walk a thin line of competing with each other and preparing to integrate.
"My hair continues to get whiter, and I think part of that is the challenge we have running two separate companies where we have to go out and compete against each other in the marketplace," Stein said.
Columbia reported its best third quarter on record in terms of loan production, which totaled $598.1 million. Profit rose more than 22% to $64.9 million. Earnings per share came in at 83 cents, just above estimates of 82 cents.
Umpqua's profits fell to $84 million in the third quarter, down 22% from a year ago, the bank reported Wednesday. Earnings per share of 39 cents missed expectations of 45 cents.
