Umpqua Holdings Corp. announced in September it will buy Sterling Financial Corp. for about $2 billion. Umpqua, which has five branches in Clark County, assumed the former Bank of Clark County's deposits in 2009 after bank regulators shut down the Vancouver-based bank. Spokane-based Sterling, which has 11 Clark County branches, completed its acquisition of the former First Independent Bank, which had been based in Vancouver, in 2012.
EUGENE, Ore. — Umpqua Holdings, the parent company of Umpqua Bank, reported a third-quarter profit of $23.5 million, down 7 percent from the comparable quarter in 2012. Earnings per share were 21 cents, down 5 percent.
Results for the most recent quarter included completion of the acquisition of Financial Pacific Holding Corp. Portland-based Umpqua also announced plans during the quarter to merge Sterling Financial Corp. into Umpqua. If the deal is approved by regulators, Umpqua will become the largest community bank in the western United States.
Total assets as of Sept. 30 were $11.6 billion, compared with $11.5 billion a year ago. Total loans and leases were $7.6 billion as of Sept. 30, up from $7.2 billion a year ago. Deposits were $9.1 billion, the same as a year ago.
The bank saw a 23 percent decrease in mortgage loan production in the third quarter compared with the second quarter of this year and a 25 percent decrease compared with a year ago, largely because refinancing fell after interest rates rose and home purchases haven't risen fast enough to offset the decrease in refinancing, bank officials said.
The acquisition of Financial Pacific for $156.1 million during the quarter contributed $6 million to Umpqua's operating earnings for the quarter, bank officials said.
"This past quarter was another strong period for Umpqua, highlighted by strong earnings in spite of reduced home lending volume, continued loan growth, the completion of our Financial Pacific acquisition -- as well as the opening of our San Francisco flagship store," Umpqua President Ray Davis said in a written statement.
Umpqua had $3.9 billion in cash or assets that could be quickly converted into cash as of Sept. 30, which amounted to 34 percent of total assets and 42 percent of total deposits.
Umpqua announced its earnings after the close of regular trading on Wednesday. Its stock, which trades under the ticker symbol UMPQ on the Nasdaq exchange, is trading in the upper region of its 52-week trading range of $11.17 to $17.48 per share.