Columbia Bank pushes its business lending unit into Utah

Columbia Banking System, which is nearing the completion of a merger with Umpqua Holdings that would create a $50 billion West Coast franchise, is expanding its business into Utah.

The Tacoma, Washington-based parent company of Columbia Bank said Tuesday that it has hired two bank industry veterans from the Salt Lake City area as part of the effort.

James Divver started in May as senior vice president and business development officer, and Jeffrey Thomas began last month as senior vice president and commercial banking lead in the bank’s new loan production office in Utah. 

"We look to empower people in local markets. They're really running the bank; we're not trying to run it from the headquarters," said Chris Merrywell, Columbia’s chief operating officer and executive vice president. He added that the loan office is only their opening play, because they hope to use it to win new customers and eventually convert it into a full-service banking shop.

Thomas was previously senior vice president and business banking market leader in the Salt Lake City area for U.S. Bancorp, and Divver was senior vice president of government relations for Zions Bancorp.

The hirings come after Columbia's acquisition last year of Merchants Bank of Commerce pushed the company — which already had a presence in Washington, Oregon and Idaho — into California. Following the Merchants acquisition, the Columbia team looked at Utah, specifically the Salt Lake City area, as a prime growth market, Merrywell said.

"We've always looked at how commerce travels. And so if you look at the interstates and you look at Boise, [Idaho], you go down through Twin Falls, it's a natural extension to get down into Utah," he said.

Columbia's merger with Umpqua, which is based in Portland, Oregon, is expected to close in the third quarter, pending approval from regulators, Merrywell said. He said no unusual hurdles have arisen, but generally "things are moving slower than in the past" with merger approvals. 

The Umpqua merger will let the bank’s Utah executives play with a bigger set of possibilities — from taking on the big banks to serving small businesses, Merrywell said.

"When we come together, we'll fit into a market position that's going to allow us to take care of a lot of needs, take care of a lot of different types of clients," he said.