Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Banks--- Betting on the recovery -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (962)	6/20/2010 1:28:31 AM
From: Asymmetric	Respond to of 1428

Umpqua Buys Third Failed Bank This Year, Expands Into Nevada . By Dan Reichl / Bloomberg / June 18, 2010 Umpqua Holdings Corp., owner of Umpqua Bank in Oregon, bought its third failed lender this year, agreeing to acquire Nevada Security Bank. The bank in Reno, Nevada, was seized yesterday by state regulators, according to a statement posted on the Federal Deposit Insurance Corp. website. Umpqua, based in Portland, Oregon, said it will expand into Nevada with the purchase, which boosts its number of branches to 181. FDIC Chairman Sheila Bair said yesterday in a speech that the U.S. needs new rules for loan origination, securitization and servicing as banks continue to fail. She cited a “lack of market discipline” that resulted in more than $2.1 trillion of securities issued between 2004 and 2006 that were backed by subprime mortgages or home loans made to borrowers not required to document their income. “The financial crisis was triggered by a reckless departure from tried and true, common-sense loan underwriting practices,” Bair said in prepared remarks at the University of Pennsylvania’s Wharton School in Philadelphia. “The FDIC is in the midst of cleaning up the damage.” Nevada Security Bank, with five branches, had $480.3 million in assets and $479.8 million in deposits, the FDIC said. The FDIC and Umpqua will share any losses on $368.2 million of the assets. The agency said the transaction will probably drain $80.9 million from its deposit-insurance fund. Umpqua acquired Rainier Pacific Bank of Tacoma, Washington, and Seattle-based Evergreen Bank earlier this year. In 2009, it purchased the failed Bank of Clark County in Vancouver, Washington. Problem Lenders The FDIC’s list of “problem” lenders is the longest in 17 years. Bair has said the confidential list rose to 775 banks with $431 billion in assets in the first quarter. That’s an increase from 702 banks with $402.8 billion in assets at the end of the fourth quarter. Umpqua rose 21 cents, or 1.7 percent, to $12.56 yesterday in regular Nasdaq Stock Market trading. It has climbed about 50 percent in the past year, compared with the 37 percent gain of the 24-company KBW Bank Index.