May 20--Umpqua Bank has no plans to close a branch operation it acquired from the failed Bank of Clark County despite the formal opening Tuesday of a new bank office a few blocks away at Esther Short Park in downtown Vancouver.

The "neighborhood store" at 720 Esther St. is unlike traditional bank offices, designed as a place for customers and others to connect with the community, Umpqua officials said during ribbon-cutting ceremonies. A flat-screen TV displays photos and information of neighborhood events. A touch screen provides information about Umpqua's services and products and another allows visitors to tap into the Internet while listening to music on headphones.

"We wanted to be in this location (Esther Short Park area) for a long time," said Ric Carey, executive vice president of retail banking for Umpqua's three-state branch network. "We had the opportunity to back out of this site, but chose not to. This reminds us of Portland's Pearl District several years ago. It's a place we want to be."

Carey said Umpqua had no plans to close a nearby branch operation, once part of Bank of Clark County at 15th and Washington streets. Umpqua stepped in four months ago to acquire retail branch operations and deposits of the defunct BOCC, including an east Vancouver branch at Southeast 164th Avenue and First Street and its downtown main branch, where about 20 people now work.

"We see the 15th Street branch servicing Vancouver's upper Main Street businesses and the Esther Short branch connecting with lower Main."

Carey said Umpqua continues to look for more branch office locations around Clark County in such places as Ridgefield, the Camas area and Battle Ground. Opportunities might also arise from additional acquisitions, but he would not confirm any ongoing buyout negotiations.

"We expect in the next 18 months to have a greater presence in this area," Carey said.

Quarterly update

Early last month, Umpqua Holdings Corp, parent company of Umpqua Bank, reported a first-quarter net loss of $10.6 million, compared with net income of $3.8 million in fourth quarter 2008 and net income of $24.7 million in the first quarter of 2008.

"By continuing to aggressively reduce exposure within our residential development portfolio, we are beginning to see light at the end of the tunnel," Ray Davis, Umpqua president and CEO, said at the time.

Umpqua reported first-quarter assets of $8.7 billion, up 2 percent from $8.4 billion in 2008. Liabilities increased to $7.31 billion, up 3 percent from 2008.

Umpqua, with administrative offices in Portland, operates in Northern California, Oregon and Southwest Washington.

The bank reported net loan charge-offs of $55 million during the quarter, resulting in an overall decline in loans. Total deposits increased $204 million, up 3 percent. Excluding $167 million in deposits from the Bank of Clark County, Umpqua saw deposits increase by $37 million.

Carey said banks typically experience a 10 percent to 20 percent drop in deposit balances after a takeover, but former Bank of Clark County deposits "have actually seen growth," he said.

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