NOVATO -- Umpqua Holdings Corp. (Nasdaq: UMPQ), the parent company of Portland, Ore.-Umpqua Bank, today announced the completion of its acquisition of Novato-based Circle Bancorp, parent company of Circle Bank.
A definitive agreement between the two companies was first announced in August. Umpqua acquired Circle Bank for $24.9 million, which includes a cash consideration for common shareholders of $20.4 million -- $17.75 per share -- and a planned cash redemption of $3.5 million in preferred stock and outstanding options.
Effective today, all Circle Bank branches are operating under the Umpqua Bank name. Circle Bank, which most recently reported $306 million in net assets, operated six branches in the North Bay and San Francisco.
Circle Bank recently unveiled a long-planned headquarters at 999 Grant St. in Novato. The location will now serve as the nexus for Umpqua Bank's operations in the North Bay.
The combined organization now has assets of approximately $11.8 billion, deposits of approximately $9.3 billion and equity available to common shareholders of around $1.7 billion.
"We are pleased to bring Circle Bank into the Umpqua fold and to continue our expansion in the Bay Area. This merger provides customers extended geographic access and increased product offerings, delivered with the personal service of a community bank," said Ray Davis, president and CEO of Umpqua Bank, in the announcement. "Circle Bank shares Umpqua's values and culture, making this a smooth transition for customers, associates and communities."