Academic journal article Federal Reserve Bulletin

Umpqua Holdings Corporation Portland, Oregon

Academic journal article Federal Reserve Bulletin

Umpqua Holdings Corporation Portland, Oregon

Article excerpt

Order Approving the Acquisition of a Bank Holding Company FRB Order No. 2014-2 (March 28, 2014)

Umpqua Holdings Corporation ("Umpqua"), Portland, Oregon, has requested the Board's approval under section 3 of the Bank Holding Company Act ("BHC Act") (1) to merge with Sterling Financial Corporation ("Sterling") and thereby acquire its subsidiary bank, Sterling Savings Bank ("Sterling Bank"), both of Spokane, Washington. Immediately following the proposed acquisition, Sterling Bank would be merged into Umpqua's subsidiary bank, Umpqua Bank, Roseburg, Oregon, a state nonmember bank. (2)

Notice of the proposal, affording interested persons an opportunity to submit comments, has been published in the Federal Register (78 Federal Register 63476 (2013)). (3) The time for submitting comments has expired, and the Board has considered the proposal and all comments received in light of the factors set forth in section 3 of the BHC Act.Umpqua, with consolidated assets of approximately $11.6 billion, is the 96th largest insured depository organization in the United States, controlling approximately $9.1 billion in consolidated deposits. (4) Umpqua Bank operates in California, Nevada, Oregon, and Washington. Umpqua Bank is the fifth largest depository institution in Oregon, controlling deposits of approximately $4.4 billion, which represent 7.5 percent of the total deposits of insured depository institutions in that state. (5) Umpqua Bank is the 24th largest depository institution in California with approximately $3.3 billion in deposits, the 19th largest depository institution in Washington with approximately $1.1 billion in deposits, and the 16th largest depository institution in Nevada with approximately $279.1 million in deposits, which represent less than 1 percent of the total deposits of insured depository institutions in each of those states.

Sterling, with consolidated assets of $10.3 billion, controls Sterling Bank, which operates in California, Idaho, Oregon, and Washington. Sterling Bank is the eighth largest depository institution in Washington, controlling deposits of approximately $3.4 billion, which represent 2.9 percent of the total deposits of insured depository institutions in that state. Sterling Bank is the ninth largest depository institution in Oregon, controlling deposits of approximately $1.8 billion, which represent 3.1 percent of the total deposits of insured depository institutions in that state. Sterling Bank is the 63rd largest depository institution in California, controlling deposits of approximately $872.9 million, which represent less than 1 percent of the total deposits of insured depository institutions in that state. In addition, Sterling Bank is the 11th largest depository institution in Idaho, controlling deposits of approximately $492.6 million, which represent 2.4 percent of the total deposits of insured depository institutions in that state.

On consummation of this proposal, Umpqua would become the 63rd largest insured depository organization in the United States, with consolidated assets of approximately $22.0 billion. (6) Umpqua would have consolidated deposits of approximately $16.2 billion. Umpqua would become the fourth largest depository organization in Oregon, controlling deposits of approximately $6.2 billion, which represent 10.6 percent of the total amount of deposits of insured depository institutions in that state. Umpqua would become the sixth largest depository organization in Washington, controlling deposits of approximately $4.5 billion, which represent 3.8 percent of the total amount of deposits of insured depository institutions in that state. Umpqua would become the 21st largest depository organization in California, controlling deposits of approximately $4.1 billion, which represent less than 1 percent of the total amount of deposits of insured depository institutions in that state.

Interstate and Deposit Cap Analysis

Section 3(d) of the BHC Act imposes certain requirements on interstate transactions. …

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