Umpqua Holdings Reports 1Q Loss On Credit Costs

Total nonperforming assets rose 86 percent to $164.2 million, or 2.16 percent of total loans and leases.

Despite the higher credit costs, President and Chief Executive Ray Davis said in a statement he is "beginning to see a light at the end of the tunnel."

The bank said it expects the second-quarter provision for loan losses and chargeoffs to be much lower than in the first quarter.

Net interest income, or earnings generated from loans and deposits, rose 8 percent to $75.4 million, boosted by a decline in interest expense.

Non-interest income, or income from fees and other charges, fell 48 percent to $15.5 million. While service charges and brokerage fees declined, mortgage banking revenue jumped significantly to $4.1 million, as mortgage interest rates dropped and refinance activity picked up.

Umpqua Holdings is the parent company of Umpqua Bank, which operates 150 locations throughout the Northwest.