Umpqua Holdings Corporation (UMPQ) has reported a 9.93 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $69.28 million, or $0.31 a share in the quarter, compared with $63.02 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $60.21 million, or $0.27 a share compared with $64.42 million or $0.29 a share, a year ago.
Revenue during the quarter grew 3.03 percent to $293.24 million from $284.63 million in the previous year period. Net interest income for the quarter dropped 5.48 percent over the prior year period to $207.80 million. Non-interest income for the quarter rose 42.22 percent over the last year period to $98.62 million.
Umpqua Holdings Corporation has made provision of $13.17 million for loan losses during the quarter, up 189.79 percent from $4.54 million in the same period last year.
Net interest margin contracted 56 basis points to 3.83 percent in the quarter from 4.39 percent in the last year period. Efficiency ratio for the quarter improved to 62.15 percent from 63 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We continued to build positive momentum during 2016; restructuring the balance sheet, entering new markets, expanding our product offerings, and enhancing the digital customer experience, while streamlining operations and demonstrating expense discipline," said Cort O'Haver, president and chief executive officer of Umpqua Holdings Corporation. “With all of the heavy lifting we completed over the past two years, I believe there is now a tremendous opportunity in front of us. Given Umpqua's unique franchise and strong brand recognition, combined with the size of the balance sheet and attractive footprint, I feel we are well-positioned to capitalize on that opportunity. I look forward to sharing more details over the coming year."
Liabilities outpace assets growth
Total assets stood at $24,813.12 million as on Dec. 31, 2016, up 6.01 percent compared with $23,406.38 million on Dec. 31, 2015. On the other hand, total liabilities stood at $20,896.32 million as on Dec. 31, 2016, up 6.85 percent from $19,557.05 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $17,374.68 million as on Dec. 31, 2016, up 3.81 percent compared with $16,736.21 million on Dec. 31, 2015. Deposits stood at $19,020.98 million as on Dec. 31, 2016, up 7.42 percent compared with $17,707.19 million on Dec. 31, 2015.
Investments stood at $2,716.40 million as on Dec. 31, 2016, up 7.08 percent or $179.67 million from year-ago. Shareholders equity stood at $3,916.80 million as on Dec. 31, 2016, up 1.75 percent or $67.46 million from year-ago.
Return on assets moved up 3 basis points to 1.11 percent in the quarter from 1.08 percent in the last year period. At the same time, return on equity increased 55 basis points to 7.04 percent in the quarter from 6.49 percent in the last year period.
Nonperforming assets moved down 5.73 percent or $3.82 million to $62.87 million on Dec. 31, 2016 from $66.69 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.25 percent in the quarter, down from 0.28 percent in the last year period.
Book value per share was $17.79 for the quarter, up 1.77 percent or $0.31 compared to $17.48 for the same period last year.
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