|| Print ||
|Articles - May 2010|
|Friday, April 16, 2010|
The economy may be turning around for some in 2010, but banks haven’t seen the end of the carnage yet. Nationally, 41 banks failed between January and April and were fed to stronger banks in a sort of FDIC-assisted survival of the fittest. But Roseburg-based Umpqua Bank seemed to be full of good news amid the first-quarter plague: it repaid in full its $214 million in Troubled Asset Relief Program funds, acquired two banks in a market it’s been coveting and launched a small- business lending program.
Umpqua did not escape the crisis unscathed. The bank had more than $800 million in residential development loans when the housing bubble burst in 2007 and wrote off $197 million in losses on loans in 2009. Its parent company, Umpqua Holdings, posted substantial losses last year. But Umpqua is relatively healthy despite short-term disappointments, and it’s positioning itself to emerge as a strong regional bank after the present malaise abates.
“They’re better capitalized than peer banks, their credit quality is superior to peer averages and they’re exhibiting behavior of the bank that’s more on the offensive than on defensive,” says Jeff Rulis, a research analyst at D.A. Davidson in Lake Oswego. “They are looking to grow versus other banks that are still worrying about their own internal issues.”
Umpqua’s been able to grow rapidly in its key markets thanks to FDIC-assisted acquisitions, which are basically mergers that occur over a weekend. Umpqua quadrupled its Washington presence a year after acquiring the failed Bank of Clark County in Vancouver by picking up two failed Puget Sound banks and their combined $1 billion in assets, and it’s poised to gobble more this year.
And after the crisis is over, customers will remember that it was Umpqua the FDIC trusted to smooth things over, Rulis says.
Umpqua surmounted its losses because it marked down bad residential development loans early and aggressively, says CEO Ray Davis. The TARP funds also helped by further cushioning Umpqua’s relatively healthy capital ratios and insuring them against any economic surprises.
Even with aggressive write-downs, Umpqua’s nonperforming assets, which comprise mostly delinquent loans, made up 2.38% of its assets in 2009. It’s hard to say what that number should be for regional banks in the current climate. Washington Trust’s NPAs were 1.06% of its assets for 2009; PremierWest Bancorp’s NPAs were 8.37% of its assets for 2009. PremierWest is one of 10 Oregon-based banks operating under federal orders to improve their financial positions.
Umpqua’s problems were in residential development loans, Davis says. But many in the industry say lenders should be bracing for the impact of persistently high vacancy rates on developers who took out commercial development loans.
Davis isn’t worried about that. “The naysayers have been saying this for two years now: ‘The bottom’s going to fall out.’ They’ve been saying it for two years and nothing’s really happened,” he says. “We do not see systemic issues in our commercial loan portfolio… There will be issues that pop up but nothing widespread.”
Despite forecasts that more banks will continue to fail in 2010, Davis is confident that the worst is over for Umpqua. The bank opened a personal wealth management division in September, expanded its international banking division in December, and plans to build between six and eight new branches in Oregon and Washington this year.
“2009 to me was just the worst year ever. It was just terrible,” Davis says. “2010 is going to have challenges but it’s not going to be 2009.”
Monday, April 13, 2015
BY GRANT KIRBY | OP-ED CONTRIBUTOR
The mega-shift from technology-driven to data-driven organizations raises questions about Oregon’s workforce preparedness.
Friday, April 24, 2015
BY AMY MILSHTEIN
Male tech workers speak out on the industry's gender troubles.
Thursday, April 23, 2015
BY LINDA BAKER
On April 1 I attended a forum at the University of Portland on the sharing economy. The event featured panelists from Lyft and Airbnb, as well as Portland Mayor Charlie Hales. Asked about the impact of tech-driven sharing economy services. Hales said the new business models are reshaping the landscape. “But,” he added, “I don’t pretend to understand how a lot of this [technology] works.”
Friday, May 15, 2015
BY KIM MOORE | RESEARCH EDITOR
The Portland Bureau of Transportation is seeking input from businesses on a $5.5 million initiative to create a network of biking, transit and pedestrian trails within Portland’s central city.
Tuesday, May 26, 2015
BY KIM MOORE
A conversation with Gene Pelham, CEO of Rogue Credit Union.
Wednesday, May 27, 2015
BY LINDA BAKER | EDITOR
More than 250 people turned out today for Oregon Business magazine’s seventh annual celebration of the 100 Best Green Companies to Work For in Oregon.
Wednesday, May 27, 2015
PHOTOS BY JASON E. KAPLAN
Like all good journalists, the OB editorial staff typically eschews freebies. But health care costs being what they are, digital news editor Jacob Palmer couldn't resist ZoomCare's offer of a free three-in-one (cleaning, exam, whitening) dental office visit, guaranteed to take no more than 57 minutes.
|100 Best Green Workplaces in Oregon|
|Credit Unions Perspective|
|Hall of Flame|
|The Green Paradox|
|Information of more than 100K taxpayers breached|
|Media CEOs majority of top-10 highest paid|
|Two protesters chain themselves to Shell ship outside of Bellingham|
|PDX Carpet Adidas sell out in limited edition release|
|How to court millennials|
|Wal-Mart wants meat suppliers to improve treatment of animals|
|Scandal negatively impacts Tom Brady's endorsement value|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
The Oregon Entrepreneurs Network (OEN) will be presenting its third annual Entrepreneurial Summit on Friday, June 5 at Castaway in Portland, Oregon.
On June 13th Mayor Charlie Hales will attend nonprofit organization Dream Change’s inaugural Love Summit and will introduce one of its keynote speakers, Dan Wieden of Wieden+Kennedy advertising agency.
34 spots for food, 17 places to sip, and 7 sites to choose a brew beckon visitors.