UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Umpqua Holdings Corporation

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Umpqua Holdings Corporation

, but slightly lowered its price target from $13.50 to $13.00. J.P. Morgan noted, “While UMPQ isn't immune to the current headwinds facing the industry, previous actions taken by management are mitigating some of the pressure. Our key takeaways included: (1) increasing a relatively low loan-to-deposit ratio is a key tool to lessen NIM pressure, (2) market share gains are driving C&I growth, as opposed to a healthier economy, with the company focusing expansion efforts on the Bay Area, (3) per the proposed capital rules, with less than $15 billion in assets, UMPQ will need to phase out TRUPs over ten years, which should reduce the amount of excess capital on hand for items such as buybacks, (4) with the new stress tests hitting banks with $10-$50 billion in assets, 9% Tier 1 common is likely a new minimum standard, and (5) mortgage banking and capital markets are positive for fee revenues, while only expense savings will likely stem from OREO costs over time.” Umpqua Holdings Corporation closed on Friday at $12.74.