Umpqua (UMPQ) Misses Q4 EPS by 3c

Umpqua (NASDAQ: UMPQ) reported Q4 EPS of $0.36, $0.03 worse than the analyst estimate of $0.39.

Notable items that impacted the fourth quarter 2018 financial results included:

• $5.8 million net gain related to the previously announced sale of substantially all of the assets of Pivotus, Inc.
• $4.0 million in professional fees related to operational excellence initiatives, compared to $3.5 million in the prior quarter.
• $13.1 million loss on the fair value of the MSR asset attributable to the decrease in long-term interest rates during the quarter. This compares to $0.2 million gain in the prior quarter and $2.0 million gain in the same period of the prior year.
• $3.0 million loss on the fair value of the debt capital market swap derivatives attributable to the decrease in long-term interest rates during the quarter. This compares to gains of $0.2 million in both the prior quarter and in the same period of the prior year.
• $0.8 million of exit or disposal costs, related primarily to planned store consolidations, compared to $1.0 million in the prior quarter and $3.1 million in the same period of the prior year.
• $0.4 million unrealized holding gain on equity securities, compared to a loss of $0.5 million in the prior quarter and no gain or loss recorded in the same period of the prior year.

"We finished 2018 on a strong note, delivering another quarter of solid financial performance to cap a year in which we made terrific progress implementing the priorities laid out in our Next Gen strategy," said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. "The significant improvement in Umpqua's 2018 financial performance reflects our success implementing key Next Gen initiatives, which included generating strong loan and deposit growth and higher fee income to offset the decrease in mortgage banking revenues while reducing expenses. Building on that momentum, we\'re focused on achieving the remaining cost savings and continuing to advance our human digital strategy, which we\'re confident will continue to drive sustained profitability and long-term shareholder value."

For earnings history and earnings-related data on Umpqua (UMPQ) click here.

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