In a $2 billion deal announced Wednesday, Portland-based Umpqua Holdings Corp. will subsume Sterling Financial Corp. of Spokane.
Sterling branches in the Tri-Cities will operate under the Umpqua Bank brand after the merger is completed.
The two major regional banks said in a joint statement released late Wednesday afternoon that they "have entered into a definitive agreement pursuant to which Sterling will merge with and into Umpqua."
The merger will create the West Coast's largest community bank, the release said.
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The transaction had been rumored for several days.
The combined organization will have approximately $22 billion in assets, $15 billion in loans and $16 billion in deposits, with 5,000 associates and 394 stores across five Washington, Oregon, Idaho, California and Nevada. Umpqua and Sterling also have agreed to establish and fund a $10 million community foundation.