RankingBanking 25 - Flipbook - Page 23
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Davidson’s Rulis says. For one, the regulatory environment has changed, with the Trump adminis-
“They’ve gotten more
disciplined, more proactive
on the deposit pricing
side last year, and that’s
helped their margin expand,
which obviously enhances
profitability.”
tration signaling more willingness to approve deals
and on a faster timeline. Because of that, analysts
don’t expect delays in terms of getting the deal
approved. Management said that Pacific Premier
had the cleanest credit of any franchise Columbia
has reviewed, Rulis says. Columbia would pay no
premium in the stock transaction. Instead, Pacific
Premier would own 30% of the combined institution. If the deal is a success, shareholders of both
banks will benefit.
But the deal will certainly mark the end of an
era. Not only will Pacific Premier go away, making room for a much larger independent franchise
Matthew Clark, Piper Sandler & Co.
in the West, but the Umpqua name for the bank
will also disappear, to be replaced by Columbia.
Stein noted that the Umpqua name is hard to
pronounce outside Oregon. “It’s a part of the
state, it’s an ice cream, it’s a bank, it’s a river,”
footprint would help fill in those markets a lot
he explains. But now, when Stein goes to meet
faster, especially in Southern California where
customers in Colorado or Arizona or Utah, they
Pacific Premier was strong.
want to know what an Umpqua is, and Columbia
“And so, it made perfect sense,” Merrywell
is much easier to grasp. O’Haver, the former CEO
says. “Here’s a well-respected bank that goes to
of Umpqua, quietly left his position as executive
market very similar as we do. They’ve got a great
chairman of the combined institution in March
capital ratio. It’s just a natural fit in a market
2025, according to a bank filing.
that we’ve said we’re interested in. And it adds
Anderson says he’s motivating his staff based
to a little bit more density into the Coachella
on the opportunities of a much larger organiza-
Valley [and] into Arizona where we had started to
tion. “I’m looking at celebrating my fifth-year
expand as well.”
anniversary this summer,” Anderson says. “And
Growing meant the bank could serve larger
I’ve never been more optimistic, ever.”
customers while gaining market share among
The bank is moving beyond a difficult chapter
small businesses. “There’ll be very, very limited
with Umpqua’s merger. “It was a great experi-
instances of companies that we can’t or shouldn’t
ence,” Anderson says. “I’m so glad with the re-
bank,” Stein explains. Already, Umpqua Bank
sults. But we’re looking forward, knock on wood,
was the No. 1 Small Business Administration
to a smoother one this time around.”
7(a) program lender in Washington and Oregon in
2024, according to the SBA. Could it rank near
the top in the rest of its markets?
Plus, the Pacific Premier deal has a better
chance of success than the Umpqua merger, D.A.
Naomi Snyder is editor-in-chief of Bank Director.
