Umpqua Holdings Corp. posted a surprise second-quarter profit even as loan-loss provisions and nonperforming loans rose, while it continues to wind down its residential construction loan portfolio.
Chief Executive Ray Davis said the Portland, Ore., company's results were good, but it still has work to do as it reduces portfolio risk.
The company also noted it might have to write down goodwill because of the 42% drop in its stock price this year.
The parent of Umpqua Bank and the retail brokerage Strand, Atkinson Williams & York Inc. posted income of $7.7 million, or 7 cents a share, down 25% from $10.2 million, or 17 cents a share. Analysts polled by Thomson Reuters expected a 7-cent loss.