This Is One Incredible CEOhttp://www.fool.com/investing/general/2013/01/09/this-is-one-incredible-ceo-12.aspx Sean Williams
January 9, 2013
The Motley Fool's readers have spoken, and I have heeded your cries. After months of pointing out CEO gaffes and faux pas, I've decided to make it a weekly tradition to also point out corporate leaders who are putting the interests of shareholders and the public first and are generally deserving of praise from investors. For reference, here is last week's selection.
This week, we're going to delve into relatively unchartered territory, regional banks, and highlight the CEO of Umpqua Holdings (NASDAQ: UMPQ), Raymond Davis.
Kudos to you, Mr. Davis
So you're probably wondering, then, why would I praise a CEO like Davis if his stock vastly underperformed its peers last year? The answer to that question is simply that banking investors are blind as a bat!
Umpqua was recently named the top regional bank in Oregon by Forbes, listing its holding company, Umpqua Holdings, as the No. 28 bank nationally, ahead of both Columbia Banking System (NASDAQ: COLB) and Sterling Financial (NASDAQ: STSA), which ranked 30th and 50th, respectively. Going into Forbes' calculations was a mixture of metrics including capital ratios, poor loan percentages, and profitability.
According to Umpqua's latest earnings results, its tier 1 risk-based capital of 16.94% would place it among the highest I've seen for regional banks out West. From a growth perspective, net revenue advanced 4% while income jumped a robust 21% thanks to a 56% rise in mortgage banking revenue over the prior quarter. Finally, Umpqua's non-covered, non-performing assets dropped 32% to 0.86% of total assets -- its lowest level since the second quarter of 2007.
Do I think Raymond Davis is doing a great job? You bet your behind I do!
A step above his peers
Long-time shareholders might be bitter about Umpqua having to reduce its dividend during the height of the credit crisis, but at a payout of $0.36 annually, which is growing again, may I add, investors are receiving a