Umpqua Holdings Corp (NASDAQ:UMPQ) stock rose 1.90% (As on January 24, 11:06:41 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 22. Net interest income was $305 million for the fourth quarter of 2022, up $18 million from the prior quarter. The increase reflects the favorable impact of higher interest rates on the asset sensitive balance sheet and higher average earning asset balances relative to the prior quarter. The Company’s net interest margin was 4.01% for the fourth quarter of 2022, up 13 basis points from 3.88% for the third quarter of 2022. The increase is primarily attributable to higher earning asset yields that outpaced the rising cost of interest-bearing liabilities. The allowance for credit losses was $315 million, or 1.21% of loans and leases, as of December 31, 2022, compared to $295 million, or 1.16% of loans and leases, as of September 30, 2022.  The provision for credit losses of $33 million for the fourth quarter of 2022 compares to a provision of $28 million for the third quarter of 2022.

UMPQ in the fourth quarter of FY 22 has reported the adjusted earnings per share of 38 cents, missing the analysts’ estimates for the adjusted earnings per share of 53 cents. The company had reported the adjusted revenue of $340.36 million in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $356.7 million. As of December 31, 2022, the Company’s tangible book value per common share was $11.40, which compares to $11.11 at September 30, 2022 and $12.65 at December 31, 2021.

Total consolidated assets were $31.8 billion as of December 31, 2022, compared to $31.5 billion as of September 30, 2022 and $30.6 billion as of December 31, 2021.  Including secured off-balance sheet lines of credit, total available liquidity was $12.0 billion as of December 31, 2022, representing 38% of total assets and 44% of total deposits. Gross loans and leases were $26.2 billion as of December 31, 2022, an increase of $648 million from $25.5 billion as of September 30, 2022. Total deposits were $27.1 billion as of December 31, 2022, an increase of $249 million from $26.8 billion as of September 30, 2022.

Additionally, revenue from the origination and sale of residential mortgages was $4.3 million for the fourth quarter of 2022 compared to $10.5 million for the prior quarter.