Umpqua Bank, a subsidiary of Umpqua Holdings Corporation (UMPQ), announced its intention to consolidate 27 stores in the current year. The decision follows the Apr 2014 merger with Sterling Financial Corporation. The Roseburg, Oregon-based bank has also indicated more branch closures in 2015.
Per the announcement, shutdown of the branches will begin in September and will continue through the year end. All customers to be affected by the closure have been notified by the bank. Moreover, all the affected customers’ accounts will be automatically transferred to the most convenient nearby branch. Majority of the new branches will be located less than a mile away from the previous ones.
This decision to consolidate stores has its roots in the merger with Sterling Financial Corporation, the Washington-based bank holding company for Sterling Savings Bank. The merged entity is presently operating as Umpqua Holdings Corporation. With consolidated branches, Umpqua Bank will be able to serve its retail as well as commercial clients in a better way.
Notably, in recent times, Umpqua has carried out a string of merger and acquisition activities to keep its expansion momentum running. The Sterling acquisition is the latest in line.
Currently, Umpqua Holdings carries a Zacks Rank #4 (Sell). Some better-ranked west banks include Central Pacific Financial Corp. (CPF), CVB Financial Corp. (CVBF) and Bridge Capital Holdings (BBNK). While Central Pacific Financial and CVB Financial sport a Zacks Rank #1 (Strong Buy), Bridge Capital Holdings holds a Zacks Rank #2 (Buy).