COQUILLE, Ore.—The $1.2-billion First Community CU here intends to purchase three branches from $28.8-billion Umpqua Bank.
The branches are located in the Oregon cities of John Day, Burns, and Lakeview. The agreement is subject to regulatory approval and is expected to close in June, according to FCCU. Umpqua Bank is based in Roseburg, Ore.
“We are excited to expand our services to these wonderful communities. We understand rural Oregon because it’s where most of our members live and work. We are also delighted to welcome the Umpqua Bank employees at these branches to the First Community team,” said David Elmer, president and CEO of First Community, which currently has 28 locations.
“As customer preferences change how we deliver banking services, Umpqua’s commitment to supporting our communities remains strong,” said Brian Read, Umpqua’s executive vice president and head of retail banking. “We’re pleased that First Community has agreed to purchase these three locations and will continue providing financial services to local customers.”
Michael Bell, an attorney with Royal-Oak Mich.-based Howard & Howard who is representing First Community, said both organizations are making the right move.
“This is a win-win. I am seeing a strong trend and expect more branch deals of this nature to occur in 2020,” said Bell, who pioneered credit union acquisitions of banks leading to the completion of more than 30 to date. “Banks are right sizing and credit unions are strong buyers for branches.”