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.
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.