Umpqua Holdings in Portland, Ore., on Wednesday reported an increase in profits, as a spike in fees compensated for lower interest income.
The $24.8 billion-asset company earned $69.2 million, or 10% more than a year earlier. Earnings per share were 31 cents, or 2 cents higher than an estimate of analysts polled by Bloomberg.
The quarterly results are a sign of “positive momentum,” as Umpqua continues to offer new digital tools to consumers and expand into new markets, CEO Cort O’Haver said in a press release.
O’Haver, who previously served as president, took over as CEO at the beginning of the month. He succeeded longtime company veteran Ray Davis, who transitioned to executive chairman.
Noninterest income jumped 42%, to $98.6 million. The company attributed the increase to gains in the value of mortgage servicing rights and swap derivatives.
Net interest income slipped 5%, to $207.8 million. Total loans grew 4%, to $17.5 billion, mostly from increases in commercial real estate and construction lending.
The net interest margin declined 56 basis points, to 3.83%, due to the accounting treatment of certain acquired loans, as well as lower yields on loans and investments.
Noninterest expenses fell 1%, to $183.4 million, on slightly lower compensation and occupancy costs.