The proceeds will fund the cash portion of the previously announced merger of the two Portland-based bank holding companies. Umpqua Holdings plans to issue trust preferred securities through pools sponsored by Bear Stearns and Company, Keefe, Bruyette & Woods and Credit Suisse First Boston.

Umpqua Holdings is the parent company of the 45-store Umpqua Bank. Centennial Bancorp is the holding company of the 23-store Centennial Bank. The merger remains subject to regulatory approval and the approval of both companies' shareholders, but is expected to close in the fourth quarter of 2002.

The funding for the cash portion of the merger was announced Friday. In noontime trading on Monday, shares of Centennial were trading at $8.70 apiece, off $0.10 on the day and $0.70 off its 52-week high of $9.40, achieved 10 days ago on Sept. 20. Shares of Umpqua stood at $16.00, off $0.04 on the day and $0.68 off its 52-week high, achieved on July 2.