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Bank of America reported its best quarterly profit in more than a year, but with revenue declining and expense-reduction slowing, it is unclear where the company can turn to boost earnings. Similar questions are plaguing many banks as the latest earnings season unfolds.
April 15 -
The San Francisco bank has produced enough growth in mortgages, C&I and other areas and made other moves to offset low rates. It is a hopeful example for mortgage-heavy banks and other lenders battling tight margins.
April 14 -
JPMorgan Chase reported strong loan growth and higher utilization in its commercial banking unit, which serves midsize businesses. It could set the stage for others to report similar results. Still, low interest rates are muffling the benefits.
April 14
Umpqua Holdings in Portland, Ore., posted lower profit from a quarter earlier, largely reflecting a decline in net interest income.
The $23 billion-asset company's first-quarter net income fell 10% compared to the fourth quarter, to $47.5 million. Earnings per share of 21 cents missed the average estimate of analysts polled by Bloomberg by 5 cents. (The company's year-over-year comparisons were skewed by its
Net interest income fell 5% from the previous quarter, to $217 million. Total loans rose by 2.2%, to nearly $16 billion, but the net interest margin compressed by 14 basis points, to 4.55%.
Noninterest income increased by 26% from the fourth quarter, to $63.6 million. Noninterest expenses rose 1.2% from a quarter earlier, to $193.1 million, including $14.1 million in expenses tied to the Sterling merger. The company was able to cut costs in other areas.
"We are now able to concentrate more on our growth initiatives, reducing the company's efficiency ratio to below 60%, and continuing to innovate with new technologies and delivery systems," Ray Davis, Umpqua's president and chief executive, said in the release.
