Profits barely budged at Umpqua Holdings in Portland, Ore., even though it recorded strong consumer and other loan growth last quarter.
The $23.9 billion-asset company said Wednesday that its first-quarter net income increased about 1% from a year earlier to $47.5 million.
Net interest income rose 1% to $217.7 million while its net interest margin fell 17 basis points to 4.34%. Loans and leases increased 9% to $16.9 billion, with the consumer portfolio expanding by 34% to $554.7 million and commercial construction loans growing by 44% to $343.5 million.
Noninterest income fell by 28% to $46 million after the company recorded a $20.6 million charge related to negative fair value adjustments to its mortgage servicing rights asset.
Noninterest expenses totaled $184 million, down 4% from a year earlier, as merger-related expenses declined 76% to $3.5 million. Umpqua purchased Sterling Financial in April 2014.