PORTLAND, Ore. Umpqua Holdings Corp. announced Friday that it has agreed to buy Independent Financial Network, a multibank holding company in Coos Bay, Ore., for $53.8 million in stock.
The pooling-of-interests deal is a departure from $800 million-asset Umpquas recent strategy of expanding in Oregons larger cities. Independent Financial, with $390 million of assets, operates seven community banks, mostly in small communities in the southwest part of the state.
Umpqua is to exchange 0.827 of a share of its stock for each share of Independent Financial stock.
Based on Umpquas June 20 closing price of $11.96, the exchange would equal $9.89 per share.
Independent Financials stock rose more than 72% on news of the deal. It was trading at $8.90 late Friday. Umpquas stock fell slightly, to $11.40.
Independent Financials banks would be merged into Umpqua Bank, of Roseburg, Ore., which would have assets of about $1.2 billion and deposits of about $1 billion after the merger.
