Umpqua Holdings Corporation

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Umpqua Holdings Corporation
Public (NASDAQUMPQ)
Industry Commercial Banks
Founded Canyonville, Oregon, United States (1953)
Headquarters Portland, Oregon, United States
45°30′47″N 122°40′31″W / 45.51306°N 122.67528°W / 45.51306; -122.67528Coordinates: 45°30′47″N 122°40′31″W / 45.51306°N 122.67528°W / 45.51306; -122.67528
Number of locations
350
Key people
Ray Davis, CEO
Peggy Fowler, Chair
Cort O'Haver, President
Products Checking Accounts
Savings Accounts
Retirement Accounts
Home Loans
Personal Investing
Private Bank
Business Loans
Treasury Management
Merchant Services
Revenue Increase US$871.6 million (2015)
Increase US$253.3 million (2015)
Increase US$222.5 million (2015)
Number of employees
4,491 (December 31, 2015)
Website UmpquaBank.com

Umpqua Holdings Corporation, d.b.a. Umpqua Bank, is a financial holding company based in downtown Portland, Oregon, United States. Headquarters are in the Umpqua Bank Plaza, formerly the headquarters of Benj. Franklin Savings and Loan. The firm has three principal operating subsidiaries: Umpqua Bank (the Bank), Umpqua Investments (formerly Strand, Atkinson, Williams and York (Investments)), and Pivotus Ventures.

The company’s main operating segments are personal banking and lending, business banking and lending, and wealth management. The bank serves consumers and businesses in the community.[1] As of 2015, Umpqua Bank had $24 billion in assets and $18 billion in deposits and was ranked among the largest 60 banks in the nation.[2] Its parent company, Umpqua Holdings, is publicly traded.[1] As of 2016, Umpqua Bank was the largest Oregon-based bank, and had 350 branches in Oregon, Washington, California, Nevada and Idaho.)[3][4]

History[edit]

Company headquarters in Portland

South Umpqua State Bank was formed in 1953 in Canyonville, Oregon, with six employees. It was started by a group of people working in the timber business who wanted to create a means for their employees to cash their payroll checks. The bank opened with capital of $50,000 and surplus and reserves of $25,000.[5] The bank’s first savings account was opened by Pete Duchene, a local business agent. D.B. “Tex” Ritter and his wife Nadine opened the first commercial account for their South Umpqua Trucking Company.[6]

In 2002, Umpqua increased its number of branches to 63 by acquiring Centennial Bancorp of Eugene Oregon for $214 million.[7] On January 16, 2009, Umpqua agreed to assume the deposits of Vancouver, Washington-based Bank of Clark County after the latter bank was seized by the Office of the Comptroller of the Currency.[8] Umpqua agreed to assume the deposits of Seattle, Washington-based Evergreen Bank in January 2010 after the latter was closed by the Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) was appointed receiver.[9] A month later the company agreed to take over the deposits of Tacoma, Washington-based Rainier Pacific Bank, after it was seized by the FDIC.[10] The next month, Umpqua acquired the banking operations of Rainier Pacific Bank in a purchase agreement with the Federal Deposit Insurance Corporation.[11]

Umpqua continued with acquisitions in 2012 when they attempted to buy California based American Perspective Bank for $44.7 million, which would have added two branches to Umpqua's then 196 branches.[12] The deal fell through, however, when Umpqua was outbid, though American Perspective paid Umpqua a $1.6 million fee to terminate the deal.[13] Umpqua had been expanding into the San Francisco Bay Area,[4] and closed a $24.9 million deal to buy Bay area-based Circle Bancorp in November 2012.[14]

In September 2013, Umpqua announced it would buy Sterling Financial Corporation, parent of Sterling Bank, the second largest bank in Washington.[15] The $2 billion deal closed in April 2014 and increased the number of bank branches to 394 and increase assets to $22 billion.[15]

Current CEO and President of Umpqua Holdings Corp, Raymond Davis, took over the local 40-person South Umpqua Bank in 1994. Davis became CEO and President of Umpqua Holdings in 1999.[16] In 2007, Davis authored a book titled Leading for Growth: How Umpqua Bank Got Cool and Created a Culture of Greatness.[17] Cort O’Haver became President in April 2016, with Davis retaining the role of CEO. Davis plans to step down as CEO in January 2017. O’Haver will take over as CEO at that point while Davis will become executive chair of the bank's board and will continue to oversee Pivotus Ventures Inc.[18]

Differentiation[edit]

Umpqua Bank has enjoyed some notability in the 21st century for its setup of bank branches. Traditionally, bank branches house back-office operations and administrators, along with secure deposit areas. Umpqua Bank's branches are called 'stores', with a greater emphasis on retail operations and atmosphere than traditional bank branches.[19] Umpqua’s store design aims for an experience that crosses an upscale hotel with a hip retailer.[20]

The bank’s branches feature concierge-style customer service desks and in their Local Spotlight program (26) sell a rotating selection of locally made products, such as hand cream and pottery, and pass on all the proceeds to the participating businesses.[20][21] Bank branches each feature a prominently-displayed retro-style phone, which connects customers directly to the CEO.[1] The bank also devotes space to community activities such as art exhibitions, yoga classes, knitting groups, and group gaming activities. The bank’s San Francisco branch hosts a speaker series highlighting businesses and leaders in the categories of commercial and social goods.[22][23] In addition, the bank offers free meeting space for small businesses, nonprofits, and community groups.[1]

Umpqua Bank stores also have a relatively flat administrative hierarchy. Bank stores consist of one Store Manager, with all other employees being referred to as 'Universal Associates'. The universal associate position is structured with four levels to provide opportunities for employee advancement.[24] The execution of this concept was billed as removing the "that's not my department" thinking of employees and empowering all associates with the ability to work in all areas of a traditionally specialized banking industry.[25]

A team of advisors from the Ritz-Carlton hotel group conducts annual training sessions for Umpqua employees on customer service and leadership.[1][26] Employees also have access to 6,000 classes through an online instruction firm as well as two bank-led leadership training programs.[26] Employees are allowed to volunteer during work time up to 40 hours a year. Umpqua community service projects include building community gardens at local schools.[26]

The bank’s nontraditional marketing techniques include what it calls "handshake marketing,” including random acts of kindness such as attaching small flyers to potted plants and placing them on more than 1,000 neighborhood doorsteps as well as offering children start-up capital and a kit to start a lemonade stand.[27][23][28]

In anticipation of its flagship San Francisco store opening in August 2013, the bank put up a makeshift billboard on the building’s exterior construction wall and hired artists to artfully copy tweets about favorite San Francisco establishments to the wall. As new tweets came in, the artists replaced the billboard’s messages.[27][29] As part of its South Lake Union flagship store opening in Seattle in March 2014, the bank commissioned Montréal design studio Daily tous les jours to create an illuminated installation called the Conversation Wall, where passersby could share topics of interest. The installation ran for two months and upon its conclusion segued to a curated series of events called the Conversation Series.[30][31] Later in 2014, Umpqua created an interactive, multimedia experience called "Exhibit: Growth" that debuted in downtown Portland before touring in Seattle.[32] In 2015, Umpqua Bank introduced a podcast called Open Account in partnership with Panoply, a podcast network by Slate Magazine. The host SuChin Pak, previously a correspondent for MTV, interviews guests about their financial struggles and successes.[33]

Honors and Awards[edit]

As of 2013, the bank gained a place on Fortune magazine's national top 100 "Best Places to Work" every year since 2007.[26]

Umpqua Bank was one of the highest-rated large companies among those surveyed for The Oregonian by Workplace Dynamics in 2013.[26]

Design firm Huen, for their project 'Umqua Bank,’ won the Store of the Year Award at the 43rd International Store Design Competition, receiving the award at the Retail Design Institute International Store Design Awards Gala on January 13, 2014 in New York City.[34]

Umpqua Holdings was named a top dividend stock by Forbes’ Dividend Channel in 2015.[35]


See also[edit]

References[edit]

  1. ^ a b c d e Pender, Kathleen. “Umpqua Bank aims to be part of S.F. community.” SFGate. Aug. 28, 2013
  2. ^ Securities and Exchange Commission Form 10-k. Commission File number 001-34624
  3. ^ Kish, Matthew (July 21, 2011). "Umpqua profits climb, beat estimates". Portland Business Journal. Retrieved 23 July 2011. 
  4. ^ a b Calvey, Mark (December 23, 2011). "Umpqua Bank ramps up its Bay Area focus". Portland Business Journal. Retrieved 11 April 2012. 
  5. ^ New South Umpqua State Bank Holds Open House. Myrtle Creek Mail
  6. ^ The Douglas Fir. November 13, 1953.
  7. ^ "Umpqua Bank completes Centennial deal". Portland Business Journal. November 18, 2002. Retrieved 9 September 2012. 
  8. ^ "Failed bank information (FDIC), Bank of Clark County". Fdic.gov. Retrieved 2012-03-30. 
  9. ^ "Failed bank information (FDIC), Evergreen Bank". Fdic.gov. Retrieved 2012-03-30. 
  10. ^ "Failed bank information (FDIC), Rainier Pacific Bank". Fdic.gov. Retrieved 2012-03-30. 
  11. ^ "Umpqua Bank acquires Rainier Pacific Bank". 4 March 2010. Retrieved 4 March 2010. [dead link]
  12. ^ Stevens, Suzanne (April 10, 2012). "Umpqua pays $44.7M for American Perspective Bank". Portland Business Journal. Retrieved April 10, 2012. 
  13. ^ Stevens, Suzanne (May 1, 2012). "PacWest outbids Umpqua for American Perspective Bank". Portland Business Journal. Retrieved May 1, 2012. 
  14. ^ Kish, Matthew (November 15, 2012). "Umpqua acquisition of Circle Bank closes". Portland Business Journal. Retrieved 15 November 2012. 
  15. ^ a b Kish, Matthew (September 11, 2013). "It's official: Umpqua to buy Sterling Bank for $2B". Portland Business Journal. Retrieved 12 September 2013. 
  16. ^ “Company Overview of Umpqua Bank.” Bloomberg Profile
  17. ^ Davis, Ray and Alan Shrader. Jossey-Bass 1st edition. March 16, 2007
  18. ^ Kish, Matthew. “Umpqua Bank names O’Haver CEO, Davis will remain on the board.” Portland Business Journal. June 20, 2016
  19. ^ "Design and Economic Development at Umpqua Bank: An Interview with Ray Davis". Design Management Review. 2004. 
  20. ^ a b “Hipper banking in Portland.” Architecture Week. June 18, 2003
  21. ^ Gallagher, Dave. “Umpqua Bank hosting pop-up stores in its new Barkley Branch.” The Bellingham Herald. Nov. 22, 2014
  22. ^ “Umpqua Bank Catalyst Series Features Business.” Build. May 14, 2015
  23. ^ a b “Branching Out.” The Economist. June 14, 2014
  24. ^ Solomon, Micah. “Customer service secrets of Umpqua Bank.” Forbes. May 19, 2016
  25. ^ [1] Archived October 7, 2006, at the Wayback Machine.
  26. ^ a b c d e “Umpqua Bank: Third place large companies.” Oregon Live. Sept. 11, 2013
  27. ^ a b McGeer, Bonnie. “Umpqua Bank Gives New Meaning to Tweet Wall in San Francisco” American Banker. Oct. 28, 2013
  28. ^ Levere, Jane. “The Lemonade Stand that Umpqua Bank Built.” The New York Times. July 16, 2007
  29. ^ Calvey, Mark. “Umpqua Bank climbs tweet wall to build San Francisco buzz.” San Francisco Business Times. Aug. 19, 2013
  30. ^ “Do you have creative conversations with your bank?” C2
  31. ^ Knauf, Ana. “Umpqua Bank opens new store in Seattle’s South Lake Union.” Puget Sound Business Journal. March 10, 2014
  32. ^ Hale, Jamie. “Umpqua Bank explores human nature through art.” Oregon Live. Nov. 15, 2014
  33. ^ Giegerich, Andy. “Umpqua Bank hits the podwaves with Meyers Leonard, ‘Daily Show’ honcho.” Portland Business Journal. Oct. 2, 2015
  34. ^ http://www.retaildesigninstitute.org/news/251 “Store of the Year Presented to Huen for Umpqua Bank.”] Retail Design Institute
  35. ^ lhttp://www.forbes.com/sites/dividendchannel/2015/10/07/umpqua-holdings-named-top-dividend-stock-with-insider-buying-and-3-88-yield-umpq/#2788516ed8d5 “Umpqua Holdings named top dividend stock with insider buying.”] Forbes