Umpqua Holdings Corp.
(UMPQ) announced late yesterday that it has boosted the size of its common stock offering to $225 million from $175 million.

The company also priced the offering at $9.75 per share, a discount of about 9%, compared to the stock’s Thursday closing price of $10.69.

Umpqua is offering approximately 23.1 million shares of common stock.

The proceeds will be used for general corporate purposes. This may include capital to support growth and acquisition opportunities and for eventual redemption of preferred stock issued to the U.S. Treasury under the TARP Capital Purchase Program.

Under the revised offering, Umpqua has granted the underwriters a 30-day option to purchase up to approximately 3.5 million shares to cover over-allotments, if any.

The company reported a surprise second-quarter profit of 7 cents per share last month, beating the Zacks Consensus Estimate for a 6-cents loss.

UMPQ, a Zacks #3 Rank (“Hold”) stock, has declined more than 3% in afternoon trade on extraordinarily high volume of about 8 million, against the average daily volume of about 742,000.

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