Umpqua Holdings (UMPQ) in Portland, Ore., posted lower quarterly earnings after mortgage-related fees fell.
The $11.6 billion-asset company's earnings fell 7% from a year earlier, to $23.3 million. Earnings of 21 cents per share were 3 cents below the estimates of analysts polled by Bloomberg.
During the quarter, Umpqua acquired commercial leasing firm Financial Pacific Holding, or FinPac, and announced plans to buy Sterling Financial (STSA).
Net interest income rose 5% from a year earlier, to $106 million, as Umpqua expanded lending and added FinPac's $264 million in noncovered loans and leases. FinPac's lease portfolio helped boost Umpqua's net interest margin by 25 basis points from a year earlier, to 4.23%.
Noninterest income fell 22% from a year earlier, to $26.1 million, in the face of falling mortgage revenues. Umpqua's noninterest expenses rose 10% from a year earlier, to $95.6 million, primarily because of merger-related expenses.
The loan-loss provision fell 57% from a year earlier, to $3 million. Net charge-offs declined 40% from the third quarter of last year, to $4.2 million.