Columbia Banking to sell seven branches to FS Bancorp’s 1st Security Bank

Columbia Banking (COLB) 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 Department of Justice in connection with Columbia Banking System’s pending merger with Umpqua Holdings (UMPQ). The sale is expected to be completed in 1Q23, subject to regulatory approvals and other closing conditions, including the consummation of Columbia Banking System’s merger with Umpqua. All employees will be retained by 1st Security and all branches will remain in operation after the sale.