A small, regional bank in northwest Washington has agreed to buy Columbia Bank’s branches in Waldport and Newport along with others in five rural Oregon and Washington communities.
1st Security Bank of Mountlake Terrace, Wash. said it plans to retain staff and keep all locations open after the transaction is completed in February.
It is a major expansion south for the bank, which has focused its business in northwest Washington since its founding in 1936. It currently has 21 full-service branches, two commercial and seven home lending offices and $2.65 billion in assets and is the ninth-largest bank in Washington state, but one-tenth the size of Columbia Bank.
The purchase price of the branches in Waldport, Newport, Manzanita, Tillamook and Ontario in Oregon and in White Salmon and Goldendale, Wash. was not disclosed.
“We are excited to have the employees and customers of Lincoln, Tillamook, Malheur and Klickitat counties join the 1st Security Bank family,” Joe Adams, the banks chief executive officer said in a news release announcing the purchase. “We believe this will be an excellent fit and a natural extension of our Pacific Northwest focused retail presence.”
The U.S. Department of Justice is requiring Columbia Bank to sell – but not close — 10 of its 150 branches in Oregon, Washington and California as part of its merger with Umpqua Bank. That merger is expected to be completed this month.
Three Columbia Bank branches in northern California are being acquired by First Northern Bank.
The purchase agreement includes everything from the furniture, buildings to deposits and loans.
On its website, 1st Security said it would be sending Columbia Bank customers a “welcome guide” in mid-January with details of how they will be affected by the transition.
The Waldport branch is located downtown at 425 Hemlock St., covers three tax lots and has a current real market value of $877,000 not including furnishings, according to the Lincoln County assessor’s office.
The bank there started as a branch of the Bank of Newport, changed to West Coast Bank when those banks merged in 2006, and then Columbia acquired the branch in 2013 when it bought West Coast Bank.
The Newport branch is located on 1.2 acres at the corner of U.S. Highway 101 and Alder Street and has a real market value of $3.91 million, according to county records.
Columbia Bank branches in Depoe Bay and Lincoln City are not being sold.
According to the FDIC’s latest figures, the Waldport branch has total deposits of $52.6 million and the Newport branch deposits of $123.4 million.
Under conditions laid down by the Department of Justice, Columbia cannot transfer or dismiss the branch managers, assistant managers or loan officers before the sale, must help with the transition of branch employees to the branch’s new owner, and, must waive any non-complete clauses or may not require new non-complete clauses for the branch manager, assistant manager or loan officer.
1st Security Bank has 21 full-service branches in King, Kitsap, Pierce, Snohomish, Jefferson, Clallam, Thurston, Lewis and Grays Harbor counties. It has seven offices focusing on home loans, including one in Vancouver, Wash., and two commercial lending offices.
In Washington, the bank has a reputation of local lending, customer service, strong employee programs and community involvement.
The purchase is subject to regulatory approvals and customary closing conditions, 1st Security said. Under the agreement, the bank will assume certain liabilities, including checks, savings, IRAs and certificates of deposits.
