Apologies to the country singer Kenny Rogers, but when it comes to excess funds, Umpqua Holdings in Portland, Ore., knows when to hold 'em.
Many bankers have been
Umpqua's executives remain generally optimistic. The $23.4 billion-asset company recently opened a commercial banking center in San Diego and it is evaluating new markets.
-
At least five regional banks on Thursday discarded concerns about the global economy, stocks, interest rates and credit quality, forecasting loan growth for the rest of this year.
January 21 -
Umpqua Holdings in Portland, Ore., posted stronger quarterly earnings because of an increase in mortgage banking fees and lower costs.
January 27 - Oregon
Umpqua Holdings in Portland, Ore., has hired Tory Nixon, who played for the San Francisco 49ers in the 1980s, as head of commercial banking.
January 12 -
Umpqua Holdings wants other banks to join its recently announced innovation lab in Silicon Valley. The company says if smaller banks pool resources they can compete with the deep pockets of the big banks in disruption.
December 9
But don't expect Umpqua, which has bought five banks since 2010, to spend its $210 million in excess capital on more acquisitions, even though it is close to completing its integration of Sterling Financial,
Ray Davis, Umpqua's president and chief executive, was blunt when asked about acquisitions during his company's quarterly call.
"I think the honest answer is not right now, no," he said.
With acquisitions ruled out, Davis was asked about buying back more stock. Davis, in response, cast doubt on the notion that his company had an excessive amount of capital. He said he's satisfied with "where we are right now."
Overall uncertainty is playing a big role in Davis' thinking.
"The intangible with capital right now is … what's going to happen to the economy?" Davis said. "What's going to happen with interest rates? Umpqua has had a history of healthy capital in good times and in bad times. That strategy has always paid off."
To be clear, executives said they were not anticipating problems in any particular geography or loan category, noting that Umpqua aims to have a diversified loan portfolio. Management also remained upbeat about the company's mortgage operations.
Umpqua's earnings rose 21% in the fourth quarter from a year earlier to $63.4 million. Mortgage banking revenue almost doubled, contributing to a 38% increase in fee income.
"We do expect 2016 to be a strong year," Ronald Farnsworth, Umpqua's chief financial officer, said in response to a question about mortgage volume. "We are well positioned in these markets along the West Coast, and I would expect our gain-on-sale margins … [to] stay relatively steady."
