Portland-based Umpqua Holdings Corp., the parent company of Umpqua Bank, reported net income of $18.8 million, or 17 cents a diluted share, for the first quarter ended March 31, down from $23.4 million, or 21 cents a diluted share, in the year-earlier quarter.

Ron Farnsworth, Umpqua’s chief financial officer, says the dip in earnings largely was due to one-time expenses related to the acquisition of Spokane-based Sterling Financial Corp.

Umpqua completed its acquisition of Sterling Financial, the Spokane-based parent of Sterling Bank, on April 18.

Umpqua had total loans valued at $7.8 billion, as of March 31, up 10 percent from a year earlier. Most of that increase, though, was realized in 2013, as the total loan amount was up 1 percent from $7.7 billion as of Dec. 31, 2013. 

Farnsworth says Sterling hadn’t released its first-quarter earnings prior to the acquisition, and the bank isn’t required to do so now. Umpqua’s earnings release for the second quarter will show the bank’s first post-acquisition results, he says.

Farnsworth says Umpqua’s slower loan growth in the first quarter was largely seasonal.

“Commercial customers borrow more in the second and third quarters and pay them down in the first quarter,” he says. 

The bank’s interest income in the first quarter was $107.8 million, an increase of 14 percent from $94.2 million in the year-earlier quarter, although short of fourth-quarter 2013 interest income of $110.1 million.

Umpqua reported total assets of $11.8 billion as of March 31, compared with $11.5 billion a year earlier.

Deposits totaled $9.3 billion as of March 31, compared with $9.1 billion a year earlier.

Brett Rabatin, an analyst with Sterne Agee, a Birmingham, Ala.-based securities brokerage, issued a statement that described Umpqua’s quarter-to-quarter loan growth as disappointing, although he maintained Sterne Agee’s buy rating for Umpqua stock.

Sterne Agee’s statement noted that there has been some active selling of Umpqua stock since the merger, putting downward pressure on the stock price, but said that’s due in part to shareholders taking gains realized over the past year, along with unimpressive, though positive, first-quarter results.

“We think the sell-off is unwarranted and would acquire the shares on weakness,” Rabatin said. “Investors will need results later this year for proof the acquisition is a really good one.”

Umpqua’s acquisition of Sterling had a total value of $2.1 billion based on the closing price of Umpqua shares on April 17. Umpqua said the combined organization had about $22 billion in assets, $15 billion in loans, and $16 billion in deposits when the acquisition was completed.