Columbia Banking System Announces Agreement To Sell Seven Washington And Oregon Branches To 1St Security Bank

Author: Benzinga Newsdesk | November 07, 2022 10:01am

Columbia Banking System, Inc. (NASDAQ:COLB), the parent company of Columbia Bank ("Columbia"), today announced that Columbia has entered into a purchase and assumption agreement to sell seven branches in Washington and Oregon to 1st Security Bank of Washington ("1st Security"), the wholly-owned subsidiary of FS Bancorp, Inc. (NASDAQ:FSBW).

Columbia and 1st Security will provide additional information to customers of the branches to be divested. The agreement includes approximately $510 million in deposits and approximately $76 million in loans as well as owned real estate and fixed assets associated with the branches. The branches are being divested to satisfy commitments to the U.S. Department of Justice ("DOJ") in connection with Columbia Banking System's pending merger with Umpqua Holdings Corporation ("Umpqua"). The sale is expected to be completed in the first quarter of 2023, subject to regulatory approvals and other closing conditions, including the consummation of Columbia Banking System's merger with Umpqua. All employees will be retained by 1st Security and all branches will remain in operation after the sale.

"We are pleased to find a partner for these branches with a reputation for service and community support and will work to provide a seamless transition for our customers and employees," said Columbia President and CEO Clint Stein. "This agreement satisfies a key DOJ requirement to proceed toward closing our transformational merger with Umpqua."

Joe Adams, CEO of 1st Security commented, "We are excited about the proposed acquisition of these branches and the expansion of our franchise into the Oregon market. As experienced acquirors, we are committed to providing our new customers and employees with the best possible transition from Columbia and look forward to offering our personalized banking services to these communities for years to come."

1st Security Bank will acquire the following branches:

• 506 Southwest Coast Highway, Newport, Oregon
• 425 Northwest Hemlock, Waldport, Oregon
• 98 South Oregon Street, Ontario, Oregon
• 715 Laneda Avenue, Manzanita, Oregon
• 1806 Third Street, Tillamook, Oregon
• 202 West Main Street, Goldendale, Washington
• 390 Northeast Tohomish Street, White Salmon, Washington

Posted In: COLB FSBW