Investigating the track record of any company and CEO is one important factor in investing prudently. From this prospective, Umpqua is impressive. The organization has been in the banking business for more than 50 years. It's not a start-up. Several on the Board of Directors are second generation Umpqua equity owners and "roots-aware" of their goals. They are solid Oregon business people. At least one of the founders of the original firm, The South Umpqua State Bankr, emains listed as a ten percent equity owner of the re-organized, expanded corporation. To me that is an important demonstration of confidence.
Visitng an Oregon branch, one finds employees demonstrating positive work ethics and above average interest in assisting people. ( I made visits from out of State, sort of making a pest of myself.) One branch manager informed me that she was presented with the financial results of her daily operations before the end of the following day. Depending on the report accuracy and content, business information flow does not get much better than that. Too, I note that UMPQ seems to have their quarterly results of operations available rapidly, a good management indicator.
When coupled with the obvious recent publicly announced acquisition trail, one is lead to the conclusion that, under current Directors and management, Umpqua is at least a fair long term ( five or more years) equity investment risk. Nevertheless, it will be interesting to learn about the upcoming October EPS results. This quarter may reflect some of the one-time acquisition expenses and perhaps some illustration how managment controls and handles expenses in working toward growth. In addition, a question: Can they make an adequate return while re-shaping newly acquired businesses, a new relatively new experience for management. I believe and hope they can.
I tend to discount fears about lawsuits in connection with acquisitions. Such are not unusual. After all, lawyers must survive too.