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Two banks finish merger Mail Tribune / Bob Pennell Valley of the Rogue Bank, at 10th and Central in Medford, soon will be one of 27 branches of Umpqua Bank, thanks to VRB�s merger with South Umpqua Bank. The merger is the largest of its kind in state history. South Umpqua, Valley of Rogue become statewide Umpqua Bank By Shari Downhill Two homegrown banking interests have sealed the deal on the largest banking merger in state history. Portland-based Umpqua Holdings Corp. (Nasdaq: UMPQ) announced Monday the successful merger of its subsidiary, South Umpqua Bank, and Valley of the Rogue Bank. Through the merger, a new statewide bank has been created � Umpqua Bank. The marriage of the two banks has created a $770 million institution with 27 branches stretching from Ashland to Portland and a portfolio of $500 million in loans and $670 million in deposits. Umpqua also will have 54 ATMs scattered across the state. Umpqua Bank now ranks third in assets among Oregon banks, behind Lake Oswego-based West Coast Bancorp ($1.36 billion) and Portland-based Centennial Bancorp ($821 million). Customers of both former institutions are being assured the small-town flavor of both banks will be preserved. Still, there are changes coming for VRB customers who will see more than a transformation of the logo on checking account statements. "In this merger, although we�ve created a larger bank, we�ll never move away from the fact we are a community bank," said parent company Chief Executive Officer Ray Davis. Former VRB Chief Executive Officer Bill Haden has taken the helm at Umpqua Bank. Both Davis and Haden said very few of the approximately 400 employees affected by the merger will lose jobs. Some duplicate positions have been cut, Davis said, and employees have been shifted and given new jobs. At most, 20 to 25 people would be out of work. As new jobs come open, displaced workers will have the opportunity to apply first. Visiting Umpqua Bank will be like visiting a financial store, Davis said, referring to Umpqua�s retail marketing focus. The branches will be laid out like a "store" with boutique-style areas, including a cyber cafe where the bank�s own blend of coffee is served and sold. Bank locations also will offer investment centers, Internet access for online banking and a big screen television. "We believe in our bank that all bankers are retailers," Davis said. "A lot of bankers don�t believe that. As retailers, we�d better be good at it." As a subsidiary of a financial holding company, Umpqua Bank can offer customers a broad range of financial products and services, including insurance and securities, Davis said. In the merger, shareholders of VRB Bancorp will receive 0.8135 shares of Umpqua Holdings Corporation stock for each share of VRB stock held. Approximately 6.7 million new shares of Umpqua Holdings Corp. common stock will be issued to VRB shareholders. Total outstanding shares will be approximately 14.4 million. Davis and Haden both said VRB and South Umpqua Bank overwhelmingly approved the merger. Of the 8.3 million shares of outstanding VRB common stock, 5 million shares cast approval for the merger, Haden said. About one million shares voted against the deal. Uncast proxies counted as a negative vote. "Wouldn�t George Bush die for that kind of a margin?" Haden said. Umpqua Holdings shareholders� votes were even more favorable with 82 percent approving the merger. About 50,000 shares voted against the deal, Davis said. Umpqua Holdings Corp. managers are planning future expansion into Washington and California markets. VRB was founded in Rogue River in 1968 and before the merger had grown into Southern Oregon�s largest community bank, purchasing five other local banks along the way. Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.