Strong mortgage banking revenue boosted third-quarter earnings at Umpqua Holdings (UMPQ) by almost 15% from a year earlier, to $25 million.
The $11.5 billion-asset company reported third-quarter earnings per share of 22 cents, up almost 16% year over year. For the first nine months of the year, Umpqua earned $73.4 million, up 39% from a year earlier, the Portland, Ore., company said Wednesday.
Loan growth, improving credit quality and strong mortgage production were highlights of the quarter, Ray Davis, Umpqua's president and chief executive, said in a news release.
Noninterest income rose almost 36%, to $33.7 million, year over year, as mortgage banking revenue totaled $24.3 million, over three times higher than a year ago.
Umpqua's total noncovered loans rose 7%, to $6.2 billion, year over year as the mortgage portfolio climbed 39%, to $391.4 million, and consumer and other loans rose 18%, to $37.9 million. Residential development loans declined 38%, to $64.2 million, and home equity lines and loans fell 4%, to $264.4 million.
The company's provision for noncovered loan losses totaled $7.1 million, down 22% from a year earlier. Net chargeoffs slid 57%, to $5.9 million, year over year.
Noninterest expense totaled $87 million, up 1% from a year ago and almost flat from the second quarter. Salaries and benefits costs rose 10%, to $49.5 million from a year earlier, due primarily to higher commissions and other expenses related to mortgage loan production.