Oregon Public Broadcasting

Portland-based Umpqua Bank learned Tuesday that it’s getting $214 million from the U.S. Treasury.

The money is part of the $700 billion fiscal rescue package Congress passed a few weeks ago. In Umpqua’s case, the money is meant to boost the bank’s already strong position, not to buy out so-called “troubled assets.”

Umpqua Bank CEO, Ray Davis, says the money will allow his company to move aggressively to help loosen up the region’s finances. Davis says there are three aspects.

Ray Davis: “One, is to continue to loan money in the communities that we serve. Number two, is to be able to continue their own organic growth strategies. And number three is to take advantage of potential consolidation of weaker institutions that are not qualified to get this capital.”

In exchange for the $214 million, the U.S. Treasury is getting $32 million in Umpqua Bank common stock. The idea is that as the devalued stock of banks like Umpqua goes up in value, taxpayers will get money back.

Umpqua is among a number of relatively healthy regional banks across the country that the Treasury is buying into. It follows similar investments aimed at larger national banks.