Record deposit growth, improved expense management and strong revenue gains from mortgage banking boosted Umpqua Holdings' profits in the third quarter.
The Portland, Ore., company said Wednesday that it earned $61.8 million in the quarter that ended Sept. 30, up 7% from the same period last year and 14% from three months earlier. Earnings per share climbed 8%, to 28 cents, in line with estimates of analysts polled by Bloomberg.
Net loans and leases increased 6% year over year, to $17.4 billion, as the company posted hefty gains in lease financing and commercial and residential construction lending. But net interest income fell 3% year over year due to declining loan yields.
Noninterest income climbed 32% from a year earlier, to $80.7 million, as revenue from mortgage banking nearly doubled, to $47.2 million. Meanwhile, noninterest expenses declined 1% from last year's third quarter, to $181.2 million, due to a slight reduction in personnel expenses and a 66% decrease in merger-related costs. Federal Deposit Insurance Corp. Expenses increased 22%, to $4.1 million.
The $24.7 billion-asset Umpqua said it brought in a record $660.3 million of deposits in the quarter. Total deposits were up 8% year over year, to $18.9 billion at Sept. 30.
