SANTA ROSA -- Umpqua Holdings Corporation is charting an expanded path for growth in California, following Friday's completed merger with the parent company of Argent Bank and the acquisition of Novato's Circle Bank in November of 2012.
That future will include new inroads in Southern California -- a relatively untouched market for Umpqua before its merger with Spokane, Wash.-based Sterling Financial Corp. -- along with a continued push in agriculture lending and small business loans backed by the U.S. Small Business Administration, said Ray Davis, Umpqua CEO.
"It's upward and onward, as fast as we can," Mr. Davis said.
All of Sterling's branches, which operate as Argent Bank in California and Sterling Bank elsewhere -- will be rebranded as Umpqua in approximately two months, Mr. Davis said.
Those California branches operated as Sonoma Bank until September of 2013, and were required to undergo the planned name change to Argent despite the acquisition due to regulatory requirements. Sterling acquired what was once known as Sonoma National Bank in 2007, and located much of its commercial and SBA administration for the company as a whole in Santa Rosa.
Umpqua and Sterling first announced the agreement to merge in September 2013, with Umpqua's purchase of Sterling valued at approximately $2 billion. The merger created a combined bank with over $20 billion in assets and nearly 400 branches across Washington, Oregon, Idaho, California and Nevada.
"One of the major purposes of a transaction like this is to find scale," Mr. Davis said. "Our bread and butter are those medium-to-small businesses, but we have the scale where those businesses can grow with us and not have to go to another institution."
It is the second acquisition for Umpqua that significantly expands the bank's North Bay presence, following the completed acquisition of the six-branch, $306 million-asset Circle Bancorp near the end of 2012.
Sterling had 13 Argent branches in the broader North Bay, along with offices in the East Bay and Sacramento areas and commercial banking offices in Southern California.
Prior to the acquisition, Umpqua had 20 branches plus a dedicated commercial banking office in the broader North Bay.