Umpqua (UMPQ) Tops Q4 EPS by 2c

Umpqua (NASDAQ: UMPQ) reported Q4 EPS of $0.38, $0.02 better than the analyst estimate of $0.36.

Fourth Quarter 2019 Highlights (compared to prior quarter):

• Gross loan and lease balance diminishment of $325.1 million, or 2%, partially due to $117.9 million in non-SBA loan sales closed during the quarter. Average loan and lease balances increased $208.3 million, or 1%, compared to the prior quarter;
• Deposit growth of $46.8 million;
• Net interest income decreased by $2.2 million, attributable to a lower average yield on loans and leases, partially offset by lower funding costs;
• Provision for loan and lease losses decreased by $7.0 million, driven by lower net charge offs of $14.9 million during the quarter compared to $18.0 million in the prior quarter;
• Non-interest income decreased by $4.8 million reflecting the linked quarter decline in the fair value of the MSR asset, partially offset by the linked quarter increase in the fair value of debt capital market swap derivatives;
• Non-interest expense decreased by $0.1 million, driven by lower state and local business taxes, lower marketing expense, and a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense;
• Non-performing assets to total assets decreased by two basis points to 0.23%;
• Estimated total risk-based capital ratio of 13.9% and estimated Tier 1 common to risk weighted assets ratio of 11.2%; and
• Declared quarterly cash dividend of $0.21 per common share.

"I am very pleased with the continued progress we made in 2019 on executing against our ambitious Next Gen goals," said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. "Annual loan and lease growth of $773 million in addition to deposit growth of $1.3 billion shows our emphasis on balanced growth has been effective. We took the opportunity to reposition a portion of the balance sheet in the fourth quarter by selling loans with lower yields while reducing higher cost time deposits. We will continue to focus on balanced growth, executing on our expense initiatives and investing in strategic digital initiatives in 2020, which will drive sustained profitability and long-term shareholder value."

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

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