The bank is still working through ramifications of Sterling Financial acquisition.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Despite an earnings increase of more than 150 percent from the year prior, Umpqua Bank announced it failed to meet its expectations for the first quarter of 2015 — a sign it is still working through the ramifications of acquiring Sterling Financial.
Earnings per diluted share were 21 cents in the first quarter. Analysts surveyed by Thompson Financial expected Umpqua’s per-share earnings to be 28 cents. The results follow a frustrating weekend for customers who couldn’t access their accounts as the company rolled out Internet upgrades planned after the merger. Online banking was down from Friday afternoon through Monday morning, prompting a flood of complaints on social media from people who worried about their paycheck deposits and the pending federal tax deadline. …
Chief executive Ray Davis said the bank is past the hardest parts of integrating Sterling’s operations. “With the core system conversion now behind us, we have turned our attention to the final steps of integration and realizing the remaining expense synergies, which should accelerate over the next two quarters as major obstacles have now been eliminated,” he said in a written statement.
Davis said in his statement that the company can now focus on “growth initiatives.”
From the Portland Business Journal:
Deposits climbed 2 percent in the quarter to $17.2 billion, a record. Assets climbed 1 percent to $15.4 billion, also a record. The bank’s loan portfolio increased 1 percent to a record $15.6 billion.
The bank reported earnings after the stock market closed. Shares (NASDAQ: UMPQ) traded Wednesday for $17.50. They had a 52-week range between $14.70 and $18.96.
Umpqua is by far the largest bank with an Oregon-based headquarters.
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