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Quarterly profits plunged at Hudson City Bancorp in Paramus, N.J., last quarter as it awaits regulatory approval to be sold to M&T Bank.
July 23 -
Umpqua Holdings (UMPQ) in Portland, Ore., will close 27 branches by the end of this year as part of its integration of Sterling Financial in Spokane, Wash.
June 23
Umpqua Holdings' second-quarter profit surpassed Wall Street expectations, which exclude costs tied to the Portland, Ore., companys purchase of Sterling Financial.
The $22 billion-asset company's net income fell 34%, to $17.2 million.
Operating earnings, which excludes costs tied to the companys April purchase of the $10 billion-asset Sterling Financial, were $53.9 million. Operating earnings of 27 cents a share were 3 cents higher than the average estimate of analysts polled by Bloomberg.
A steep rise operating costs contributed to the lower net income. Noninterest expenses more than doubled, to $214 million. Umpqua attributed the spike to the Sterling acquisition.
"We remain on track with the integration, and believe we are well-positioned to leverage the franchise value of the combined company to drive future growth," Ray Davis, Umpqua's president and chief executive, said in a press release Wednesday.
Income from loans increased, but not enough to offset the expense hike. Net interest income rose 126%, to $212 million. Total loans more than doubled after the acquisition, to $14.8 billion. The net interest margin expanded by 128 basis points, to 4.85%.
Umpqua increased its loan-loss provision more than fivefold, to $15.3 million. Net chargeoffs more than doubled, to $4.3 million.
Noninterest income rose 29%, to $44.5 million.