Umpqua Holding Corp.'s shares fell sharply Thursday after the Portland, Ore., company reported second-quarter earnings that fell short of analysts' forecasts.
The $8.1 billion-asset Umpqua said net income rose 2%, to $19.9 million, or 32 cents a share. Excluding expenses related to its April acquisition of the $655 million-asset North Bay Bancorp in Napa, Calif., Umpqua's operating earnings rose 5%, to $21.3 million, or 35 cents a share. Related Links
The average analyst estimate was 39 cents a share, according to Thomson Financial.
Umpqua said that per-share earnings fell 4 cents because of a $1.2 million interest reversal related to new nonperforming loans. Total nonperforming loans rose more than sixfold, to $47.9 million, from a year earlier, and the ratio of nonperforming loans to total loans rose to 0.80%, from 0.14%.
Umpqua's net interest margin fell to 4.34%, from $4.86% a year earlier. The company blamed that partly on the interest reversal.
Umpqua's shares fell 6.7% in heavy trading late Thursday, to $20.52 a share.
