Umpqua Holdings (UMPQ) in Portland, Ore., is bulking up in California with a deal to acquire American Perspective Bank in San Luis Obispo.
Umpqua announced early Tuesday that it is buying the $259 million-asset American Perspective for $44.7 million in cash, or about 1.04 times the seller's book value.
The $11.6 billion-asset Umpqua has been an active acquirer of failed banks in recent years and its deal for the five-year-old American Perspective would be its first open-bank acquisition since 2007. With the deal, Umpqua would gain two branches along California's central coast to go along with its 74 branches in Northern California. In all, Umpqua has nearly 200 branches in Oregon, Washington, California and Nevada.
American Perspective earned more than $2.8 million in 2011, an increase of 471% from the prior year, and had no chargeoffs or problem loans as of Dec. 31, according to the Federal Deposit Insurance Corp. The company is very well capitalized, with a total risk-based capital-to-assets ratio of 23.11%.
"This merger provides us with the opportunity to expand our presence in California in partnership with a terrific organization, and we look forward to becoming an integral part of the Central Coast community," Umpqua Chief Executive Raymond Davis said in a news release.
The deal is expected to closed in mid-2012.