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Umpqua Holdings (UMPQ) Publishes Fourth-Quarter and Full-Year 2021 Results; Quarterly Earnings Miss While Revenues Surpass Estimates

Thursday, January 20, 2022 09:42 AM | Carl Pettit

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Umpqua Holdings (UMPQ) Publishes Fourth-Quarter and Full-Year 2021 Results; Quarterly Earnings Miss While Revenues Surpass Estimates

On January 19, 2022, Umpqua Holdings (UMPQ) published its fourth-quarter and full-year 2021 results. Quarterly earnings missed, although revenues for the quarter ending on December 2021 surpassed market estimates.

After hours yesterday, Jan. 19, UMPQ stock was trading at $20.00 a share, representing a 2.01% drop in price.

Fourth-Quarter 2021 Results

The Pacific Northwest-based bank reported a profit of $88.4 million on $316.12 million in revenue for the quarter, coming out to earnings of $0.41 per share. Analysts had been looking for around $306.9 million in revenue, and earnings of $0.43 per share.

Full-Year 2021 Results

Umpqua Holdings posted a profit of $420.3 million for the year, or $1.91 per share, based on $1.28 billion in revenue.

Paycheck Protection Program

According to the bank, net interest income dropped by $1.7 million on a quarter-to-quarter basis due to “lower income related to PPP [Paycheck Protection Program] loan forgiveness as net interest income otherwise expanded.” The Paycheck Protection Program officially ended on May 31, 2021.

Current Expected Credit Losses on Financial Instruments (CECL)

At the onset of the COVID-19 pandemic, “economic forecasts projected significant, negative COVID-19 related impacts to the economy.” Umpqua Holdings “recorded significant provisions for credit losses in the first and second quarters of 2020.” As economic forecasts stabilized, along with the incorporation of loan mix changes, Umpqua Holdings “recorded a recapture of $0.7 million of the allowance for credit losses in the current period.”

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