Umpqua Holdings in Portland, Ore., reported higher second-quarter profit, citing lower merger costs and growth in residential real estate lending and equipment finance.
The $22.8 billion-asset company said net income rose to $54.7 million from $17.5 million, a year earlier. The large jump reflects Umpqua's acquisition of Sterling Financial in Spokane, Wash., which closed in April 2014.
Net interest income rose 3% to $218.1 million, which Umpqua attributed to loan growth. Total loans and leases rose 4% to $217.8 million. Umpqua's residential real estate mortgage portfolio increased 28% to $2.5 billion; equipment finance and leases rose 36% to $631 million.
Noninterest expense fell 6% to $201.9 million as lower merger-related costs offset higher salaries and employee benefits, occupancy costs and Federal Deposit Insurance Corp. assessments.
Fee income rose 77% to $80.4 million, on higher mortgage banking revenue, specifically an increase in mortgage originations. Umpqua also had an increase in servicing. Umpqua serviced $12.3 billion of residential mortgage loans for other lenders, up from $10.8 billion. Umpqua's mortgage-servicing-rights asset was valued at $127.2 million, up from $114.2 million.