West Coast Bancorp on Wednesday said it will be acquired by Columbia Banking System in a deal valued at $506 million.
Lake Oswego-based West Coast Bancorp (NASDAQ: WCBO), parent of West Coast Bank and West Coast Trust Co., operates 58 branches in Oregon and Washington. It has $2.4 billion in assets.
Columbia Banking System (NASDAQ: COLB), parent of Columbia State Bank, is based in Tacoma and operates 76 branches in Washington and 25 in Oregon.
The combined company will have about $7.2 billion in assets.
Umpqua Bank, a subsidiary of Portland-based Umpqua Holdings Corp., remains the largest Oregon-based bank with $11.5 billion in assets and nearly $8 billion in deposits.
Under terms of the deal, West Coast shareholders will receive $264.5 million cash and 12.8 million shares of Columbia Banking shares (Columbia shares closed at $18.85 on Tuesday), giving West Coast shareholders a 24 percent stake in Columbia.