It all started in '53. With a gallon of gas hovering around 20 cents and a three-bedroom ranch creeping past ten grand, more than a few frustrated  customers were wondering how to get ahead. Some things never change. -- Raymond Davis

 It was born in 1953 in the southern Oregon logging community of Canyonville as the South Umpqua community bank.  Four decades went by, and the bank remained a very modest entity, with four branches and a headquarters moved 25 miles up the road to Roseburg.  Just 10 years later, Umpqua Bank reigns as the largest community bank based in Oregon, with 64 branches, headquarters in Portland, $2.6 billion in assets, some 1,000 employees and a modus operandi attracting international attention.

This dramatic growth was instigated by a board of directors who realized that a small town bank trading within a timber-based economy needed a makeover to survive, let alone grow.  That’s when Raymond Davis answered a headhunter’s call.  When contacted, Davis was running the U.S. Banking Alliance, an Atlanta consulting firm providing services to dues-paying banks.  As a consultant, Davis had a grasp on problems and possible solutions for the banking industry and saw an opportunity to put this knowledge to work running his own bank.  Several board sessions later, company chairman Allyn Ford described Davis as a “very risky choice,” but accepted his board’s decision to go with Davis’s energy and  innovative ideas though he had no experience as a bank CEO.  That was June, 1993, and a new banking culture was born.

“Culture” is a favorite word with Davis.  “We don’t put the same old banking policies in a new setting,” he explains.  “Our culture is based upon service…we maintain community orientation for each outlet and encourage freedom of decisions among our personnel.”  Umpqua has an Executive Vice President of Culture to supervise what Davis terms “our most valuable asset.”

Innovative software measures service level

“Banks all talk ‘service’, but few can demonstrate constant attention to the concept…we’ve developed our own unique software that measures the service level branch by branch.”  Davis implements attention to customer service with a concept of Universal Associates, empowering all staff members to help the customer with whatever the need.  This is counter to the typical banking industry practice of distinct roles for each employee and encourages everyone to be a salesperson.

Davis refers to Umpqua branches as “stores,” and one of his first actions as a CEO was to direct his employees to observe successful customer service practices by major Northwest retailers such as Nordstrom and Les Schwab.  The store image is very evident in Umpqua’s new Portland Pearl District location that includes a Computer Café, postal center, logo merchandise displays, widescreen financial news broadcasts and terminals that encourage customers to surf the internet. Contemporary hanging lamps, plush leather chairs and coffee tables encourage customers to lounge…and to enjoy a mug of Umpqua’s custom blended coffee. This ‘experience’ atmosphere has just been repeated in Eugene and Roseburg and will be extended to additional sites, with some elements mirrored in every Umpqua branch…excuse me, “store.”

Growth a continuing goal

Mergers are a means of corporate growth, but Umpqua approaches this exercise by stressing that Umpqua’s culture must be adopted by a merger partner.  To date, the largest Umpqua acquisition has been Centennial, a Eugene-based chain which had opened 15 Portland area locations when it joined Umpqua last year.  Umpqua Holdings Corporation , with Davis as CEO, is the parent company of Umpqua Bank and of Strand, Atkinson, Williams & York, Inc., a brokerage subsidiary. 

Davis envisions the Umpqua marketplace will be extended into Seattle to the north and Sacramento to the south.  “We will continue to grow within our region,” Davis declares.  He laments the nationalization that now afflicts US Bank.  “When I was a consultant in Atlanta, I used to look at John Elloriaga’s U.S. Bank of Oregon as an ideal regional operation.  What has happened since John left is tragic and also emblematic of ‘big banking’ in general.”

Davis terms himself as an “architect of growth” based upon firm principles of both acquisition and operation.  “We don’t rape and pillage when we take over a bank…people are absorbed into our culture.”  That culture is mirrored in a prominent sign on the walls of each Umpqua store: “Welcome to the World’s Greatest Bank.”  A bold title that Davis insists will be a reminder to every Umpqua employee to focus on “a unique banking experience second to none for each customer.”  An Umpqua promotion piece declares “banking should be about service—the kind that is so good that it takes you by surprise.” 

Umpqua board is diverse

After his hiring, Davis sought to broaden his board’s essentially small-town makeup.  Company chairman Allyn Ford is a scion of timber harvest and manufacturing giant Ford Industries and has been involved with Umpqua for 30 years.  He was instrumental in defining his board’s challenge that led to hiring Davis.  Ford has been joined by David Frohnmayer, University of Oregon President and Scott Chambers, owner of a large and diverse Eugene media company.   The Umpqua board focuses on long-term strategy, leaving micro-managing of bank operations to Davis and his employees. 

Umpqua directors seem inspired in their selection of Davis.  He worked as a CPA prior to becoming a banking consultant and his accounting knowledge seems well blended with imagination.  Davis defines himself as an “army brat”, well-traveled while growing up as the son of a military officer.   He terms his Umpqua experience as “an incredible journey.”  The trip also seems well worthwhile for all participating in the dramatic growth of Umpqua Holdings Corp.

© 2003 Oregon Magazine