There's likely always going to be a place for local/regional banks
that focus on customer service and deep relationships as opposed to
cross-selling and cost efficiency. Umpqua Holdings (UMPQ) is one such bank in the Pacific Northwest, where it has the #4 position in Oregon behind Bank Of America (BAC), U.S. Bancorp (USB), and Wells Fargo (WFC) and the #7 position in Washington state.
Umpqua
has a lot going for it, including an uncommon retail-oriented branch
network and strong growth opportunities in leasing. The acquisition of
Sterling not only gives the company more scale in its core operating
areas, but also the prospect of synergies and cost leverage and a more
balanced loan book. The biggest problem is that the Street is already
pretty favorably disposed toward Umpqua and the shares seem to factor in
some pretty bullish expectations already.
Continue reading here:
Sterling Strengthens The Business, But Umpqua Not Exactly Cheap
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