LIBERTY LAKE, Wash.–STCU said it and Umpqua Bank are seeking regulatory approval to acquire four Umpqua Bank stores and convert them to STCU branches in the Washington markets of Medical Lake, Ritzville, Coulee City and Othello. The organizations called the move a “friendly acquisition” to ensure a branch presence remains in the markets as the bank focuses on its digital strategy.
A purchase price was not disclosed.
The $3.6-billion STCU, for Spokane Teachers Credit Union, said if the deal is approved it will provide STCU its first locations in Adams and Grant counties, Washington, where it has existing members, while bolstering its presence in the growing West Plains area of Spokane County.
The four Umpqua stores were Sterling Bank branches, prior to Umpqua’s acquisition of Sterling in 2014. Ezra Eckhardt, president/CEO of the credit union, was president of Spokane-based Sterling and became chief operating officer at Umpqua after the merger. He was named STCU president and CEO on Jan. 1, 2018.
The credit union said the acquisition would also provide a convenient branch experience for existing STCU credit union members in rural communities, while adding more than 5,000 Umpqua customers as STCU members. STCU said Umpqua employees would be offered positions at the credit union.
Branches Remain ‘Foundational’
“While STCU members increasingly are accessing their accounts through online banking and our mobile app, a visit to an STCU branch location remains foundational to the STCU experience,” said Eckhardt in a statement.
In the statement, STCU said Umpqua customers, too, are turning to digital tools with increased frequency.
“As part of its Human Digital Banking strategy, which leverages technology to empower deeper, more meaningful human connections with its customers in a digital environment, Umpqua is partnering with other financial institutions like STCU to continue providing a physical branch location in smaller communities,” STCU said. “By working with STCU on the friendly acquisition, Umpqua helps ensure that none of the four communities is left without physical access to a financial institution.
Support for ‘Local Communities’
“Customer preferences continue to change how we deliver banking services. What remains the same is our strong commitment to supporting local communities and partnering with others to ensure the financial needs of customers are covered,” said Brian Read, Umpqua’s executive vice president and head of retail banking. “We’re really pleased that STCU has agreed to purchase these four locations and will continue serving customers locally.”
The acquisition remains subject to approval by the FDIC, NCUA, and the Washington State Department of Financial Institutions. STCU and Umpqua said they hope to complete the acquisition late this year, or in early 2021.
“We will make this conversion as seamless as possible for Umpqua Bank customers,” Eckhart said. “Once approval is granted, they will receive all the information they need for a successful transition to the credit union.”
The two organizations said they share similar origin stories in their Northwest hometowns. STCU was founded in 1934 to serve Spokane schoolteachers. Umpqua was founded in 1953 to serve timber workers in Canyonville, Oregon.
“Knowing these two organizations as I do, I am confident that the wellbeing of Umpqua customers and STCU members will be foremost on the minds of everyone involved in this project, along with the good of these four communities,” Eckhardt said. “We can’t wait to show our new members everything that makes STCU a great financial partner.”