Umpqua Holdings Corp (NASDAQ:UMPQ)

FoolishMikee (< 20) Submitted: 11/16/2011 8:44:29 AM : Start Price: $11.35 UMPQ Score: +11.33

The main focuses for UMPQ at the moment are on increasing loans to deposit ratio, improving credit quality and increasing the quality of services provided.

As always the ratios I use to have a quick look at the bank are: (I haven’t include trends and long annotations for obvious reasons)
NPA / Total Assets: 1.24%
Allowance for Credit Losses to NCL: 1.61%
Price-to-Tangible Book Value: 1.39
Tangible Equity to Total Assets: 8.6%
TCE: 9.16%
Tier 1 Capital Ratio: 13.11
Equity / Assets Ratio: 14.4%
NIM: 4.12%
NPL to CO Ratio: 8.00   
Efficiency Ratio: 64.04
Pre-Provision Net Revenue: $45.37 mil
TCE / Total Assets: 8.62%

Bull Case:
NPA’s are improving
Recognised $2.5mil in loan recovery this quarter and more potential charge offs to be recovered in future
Provision for Loan Losses Trend: Improving:
Provisions for loan losses has been declining and has declined 41% since Q2 2011
Net Charge offs: lowest net charge off rate recorded since 1Q08

Things to watch:
Reserves-to-Loans Ratio
Core margins to remain stable and above the 4% range
Continuing trend in decline for loan losses

This financial holding company has made 9 acquisitions since 2000, however, unlike most banks which make acquisitions, on the naked eye it seems it they have been smart, aiming at increasing presence in the marketplace and states where they had limited/no presence. Although it took on TARP, and slashed its dividend during the financial crisis, the outlook is positive having paid that down and increasing its dividend in the most recent quarter. Umpqua has a positive future outlook with more to come.