Dallas, Texas 01/03/2014 (FINANCIALSTRENDS) – Umpqua Holdings Corporation (NASDAQ:UMPQ), in September 2013, announced a keen interest in Sterling Finanicals, valued at $1.8 billion. The deal will allow Umpqua Holdings to grow to twice its size and hold assets to the tune of $20 billions. As a combined entity, there would 400 branches and will also help the bank with its core footprint limited to Oregon to forge ahead in Californian region as well. It is expected that some of the non-performing branches of Sterling Financials would be closed to bring more efficiency into the organization. Closing of branches would also help the bank to save on costs of operations. According to analysts at RBC, the deal is believed to be of ‘accretive’ value to Umpqua Holdings.
Umpqua Holdings Corporation( NASDAQ:UMPQ) has since become a diversified financial holding company, in the Pacific Banks area, considering that it operates as a retail banking services and commercial services besides brokerage services for individual investors and retailers. The 2.09 billion market cap company currently trades at $18.66 on the stock market, a slide of nearly 2.51% and deals with volumes of 1.43 million.
Umpqua Holdings Corporation (NASDAQ:UMPQ) has since declared dividend of $0.15 per share and is in line with it prior quarterly dividends. These are payable on Jan 15, 2014, to share owners sas of Dec 31.
When Umpqua Holdings Corporation (NASDAQ:UMPQ) announced the deal to partner Sterling Financial, the company stock prices soared. At the end of its second quarterly results, Sterling Financial had over $9.5billion in assets and $1.2 billion as its equity.
According to the CEO of Umpqua, Ray Davis, the unification of these two banking services would allow the creation of unique value-based services- wide range of services that is associated with a national banking institution but delivered with the quintessential service motto of a community bank!