Columbia Banking agrees to sell seven branches to 1st Security

Columbia Banking System (COLB) announced that Columbia has entered into a purchase and assumption agreement to sell seven branches in Washington and Oregon to 1st Security Bank of Washington, the wholly-owned subsidiary of FS Bancorp (FSBW). Columbia and 1st Security will provide additional information to customers of the branches to be divested. The agreement includes approximately $510M in deposits and approximately $76M in loans as well as owned real estate and fixed assets associated with the branches. The branches are being divested to satisfy commitments to the U.S. Department of Justice, DOJ, in connection with Columbia Banking System’s pending merger with Umpqua Holdings Corporation. The sale is expected to be completed in the first quarter of 2023, subject to regulatory approvals and other closing conditions, including the consummation of Columbia Banking System’s merger with Umpqua.