"When we would do our analyst calls -- or for that matter, when the regulators would come in and,
UMB appeared to be underperforming during the subprime boom, but Kemper's determinacy ultimately paid off. Since his appointment as CEO, UMB's earnings have more than doubled on asset growth of just 19%. In 2008, the pinnacle of the financial crisis, the Kansas City, Mo.-based bank posted 32% earnings growth. Net charge-offs represented just 0.28% of its loan book vs. an average rate of about 1.8% for U.S. thrifts and banks.
When asked for a suggestion for the best CEO of a small-cap bank, Sorrentino thought immediately of Kemper.
"In boom times, it looked like they were eating stupid cookies because their portfolio wasn't growing as much," Sorrentino explains. "But they ... just did it right the whole way through the crisis; they have a big asset management arm; they're very smart on credit."Sorrentino has held UMB stock in his portfolio for years. Its performance hasn't been as breathtaking as more troubled companies this year, but neither did the stock plunge quite as precipitously during the broad equities sell-off from the fall of 2008 through early March of this year. Its shares have traded in a range of $33.65 to $60 over the past 52 weeks, with a market cap of $1.64 billion as of Monday's close at $40.36. "They didn't go down nearly as much as the bad guys, and therefore they haven't bounced nearly as much either," says Roger Young, a portfolio manager who focuses on bank stocks at Miller/Howard Investments. "We're not a stock for a trader," Kemper adds. "You won't see the swings in our earnings; you're going to see stable growth."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV