Umpqua Holdings Corp. of Portland, Ore., announced Thursday that it lost $13.8 million, or 23 cents a share, in the first quarter, as chargeoffs spiked.
It reported a profit of $24.6 million, or 41 cents a share, for the first quarter of 2008.
The $8.7 billion-asset company disappointed analysts, who, on average, had expected it to break even, according to Thomson Reuters.
Umpqua's provision for loan losses was $51.4 million, a 241% increase from a year earlier. Loan chargeoffs more than tripled, to $55.7 million.
The ratio of nonperforming assets to total assets climbed 81 basis points from a year earlier, but fell 1 basis point from the fourth quarter, to 1.87%.
The company said residential development loans, which have been a trouble spot lately, shrank 44% from a year earlier, to $329 million. It said $80 million of those loans are nonperforming.
"By continuing to aggressively reduce exposure within our residential development portfolio, we are beginning to see light at the end of the tunnel," Ray Davis, Umpqua's president and chief executive officer, said in a press release.
Umpqua also said it paid preferred stock dividends of $3.2 million to the Treasury Department, which invested $214 million in the company through the Troubled Asset Relief Program in November.
Umpqua's stock price was roughly flat Thursday, at $10.21.