UMPQ
$14.31
Umpqua Holdings
$.26
1.85%
Earnings Details
3rd Quarter September 2020
Wednesday, October 21, 2020 4:05:00 PM
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Summary

Umpqua Holdings (UMPQ) Recent Earnings

Umpqua Holdings (UMPQ) reported 3rd Quarter September 2020 earnings of $0.57 per share on revenue of $374.2 million. The consensus earnings estimate was $0.34 per share on revenue of $321.7 million. Revenue grew 0.1% on a year-over-year basis.

Umpqua Holdings Corp is a bank holding company. It offers loan and deposit products to business and retail customers as well as originates, sells and services residential mortgage loans.

Results
Reported Earnings
$0.57
Earnings Whisper
-
Consensus Estimate
$0.34
Reported Revenue
$374.2 Mil
Revenue Estimate
$321.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Umpqua Reports Third Quarter 2020 Results

PORTLAND, Ore., Oct. 21, 2020 /PRNewswire/ -- Umpqua Holdings Corporation (NASDAQ: UMPQ) (the "Company") reported net income of $124.9 million for the third quarter of 2020, compared to $52.9 million for the second quarter of 2020 and $84.5 million for the third quarter of 2019. Earnings per diluted common share were $0.57 for the third quarter of 2020, compared to $0.24 for the second quarter of 2020 and $0.38 for the third quarter of 2019.

"Umpqua's third quarter results represent a record level of net income driven by another outstanding performance by our home lending division who generated production of $2.2 billion this past quarter and by a continued decline in our cost of interest bearing deposits. In addition, we remain confident in the credit quality of our loan portfolio as our current deferral levels decreased to 2.3%." said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. "We launched Next Gen 2.0 this quarter as a continuation of the great progress we have made these past three years modernizing the bank, advancing technology initiatives and improving operating leverage."

Ongoing impact of COVID-19 on our business operations:

  • Operations have been modified to comply with multiple state-level proclamations and Center for Disease Control and Prevention (CDC) guidance and best practices; we continue to:
    • restrict travel.
    • maintain a remote work program for associates other than store associates and small groups of other functions that cannot be completed remotely.  About 90% of our non-store associates are operating remotely.
    • transitioned store operations to restrict lobby access and serve customers in-store by appointment only which has allowed over 94% of stores on any given day to remain open throughout the crisis.
    • increased cleaning scope and frequency at our store locations and installed other protective devices for our associates and customers.
  • Mobile banking usage trends are up 9% and unique sessions are up 7% year over year in addition to an expected decline in store transactions of over 27%.
  • Continue to offer our Umpqua Go-To® application with over 70,000 customers using the application.  Go-To usage increased 38% from the prior quarter levels as customers used the platform as a safe and effective way of conducting banking. 
  • We enhanced associate benefits, including:
    • supplemental front line associate pay.
    • pandemic pay bank for associates needing additional paid time off due to COVID-19 impacts.
    • flexible work rotations and remote work for higher-risk associates.
  • Active participant in PPP, including:
    • over 16,900 PPP loans produced.
    • $2.05 billion in total loans were funded.
    • average loan size was $121,000.
  • Addressing other customer needs during pandemic:
    • payment deferrals.
    • waiving deferral associated fees.
    • ATM fee waivers.
  • Enhanced community support:
    • announced a total of $3.0 million in combined grants and investments to organizations providing COVID-19 community relief and small business microloans.
    • initiated virtual volunteerism program.
    • activated an associate 3:1 giving match to donations.

Notable items that impacted the third quarter 2020 financial results included:

  • Provision for credit losses decreased by $87.4 million as compared to the previous quarter and $23.6 million as compared to the same period of the prior year, due to changes in loan portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models.
  • $12.2 million loss on the fair value change of the mortgage servicing rights (MSR) asset due to changes in model inputs compared to a $6.4 million loss in the prior quarter and a $11.0 million gain in the same period of the prior year.
  • $1.8 million gain related to the fair value of the debt capital market swap derivatives, compared to a loss of $0.8 million in the prior quarter and a loss of $4.6 million in the same period of the prior year.

Third Quarter 2020 Highlights (compared to prior quarter):

  • Net interest income increased by $4.1 million on a quarter to quarter basis primarily driven by lower costs of interest-bearing deposits;
  • Provision for credit losses decreased by $87.4 million due to changes in loan portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models;
  • Net charge-offs decreased by five basis points to 0.24% of average loans and leases (annualized);
  • Non-interest income increased by $16.4 million, driven primarily by an increase in net mortgage banking revenue and the sale of three store locations completed during the quarter;
  • Non-interest expense increased by $8.3 million, primarily due to an increase in group insurance costs, lower deferred origination costs, higher mortgage commissions due to strong mortgage production, and higher other expenses, partially offset by lower FDIC assessment costs;
  • Non-performing assets to total assets increased two basis points to 0.27% from 0.25%;
  • Estimated total risk-based capital ratio of 14.9% and estimated Tier 1 common to risk weighted assets ratio of 11.6%;
  • Paid a quarterly cash dividend of $0.21 per common share on August 31, 2020 to shareholders of record as of August 20, 2020.

Balance Sheet
Total consolidated assets were $29.4 billion as of September 30, 2020, compared to $29.6 billion as of June 30, 2020 and $28.9 billion as of September 30, 2019.  Including secured off-balance sheet lines of credit, total available liquidity was $11.2 billion as of September 30, 2020, representing 38% of total assets and 45% of total deposits.

Gross loans and leases were $22.4 billion as of September 30, 2020, a decrease of $245.0 million relative to June 30, 2020.  The decrease in gross loans and leases is primarily due to the payoffs in commercial real estate that occurred during the quarter as well as a decrease in utilization rates of commercial lines of credit.  Please refer to the additional loan tables in the Q3 2020 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $24.7 billion as of September 30, 2020, a decrease of $174.6 million from $24.8 billion as of June 30, 2020. This decrease was attributable to a decline in time deposits of $612.5 million partially offset by growth in non-interest bearing demand deposits of $303.0 million.

Net Interest Income
Net interest income was $216.6 million for the third quarter of 2020, up $4.1 million from the prior quarter.  The increase was primarily driven by lower costs of interest bearing deposits compared to the previous quarter.

The Company's net interest margin was 3.08% for the third quarter of 2020, down one basis point from 3.09% for the second quarter of 2020 primarily driven by lower yields on loans held for investment offset by lower costs of interest bearing deposits.

Credit Quality
The allowance for credit losses was $369.4 million, or 1.65% of loans and leases, as of September 30, 2020, which was down from $383.1 million, or 1.69% of loans and leases, as of June 30, 2020.  The provision for credit losses decreased by $87.4 million from the prior quarter level primarily due to changes in portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models.

Net charge-offs as a percentage of average loans and leases decreased by five basis points to 0.24% of average loans and leases (annualized) as of September 30, 2020.  The decrease in net charge-offs for the quarter was primarily due to continued, stable credit performance of the loan portfolio in addition to a select amount of borrowers using available deferral options.  As of September 30, 2020, non-performing assets were 0.27% of total assets, compared to 0.25% as of June 30, 2020 and 0.25% as of September 30, 2019.

Current Expected Credit Loss (CECL)
As described in our first quarter 2020 quarterly report on Form 10-Q filed on May 7, 2020 ("Q1 2020 10-Q"), on January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").  In applying CECL, our financial results are affected as soon as weak or deteriorating economic conditions are forecasted which alters our expectations for credit losses. In addition, due to the expansion of the time horizon over which we are required to estimate future credit losses under CECL, we may experience increased volatility in our future provisions for credit losses. Specifically, we use credit models that factor in economic forecasts, which at the beginning of the COVID-19 pandemic projected significant, negative COVID-19 impacts to the economy; therefore we recorded significant provisions for credit losses in the first and second quarters of 2020.  As those future economic forecasts have stabilized, we recorded a small recapture of the allowance for credit losses in the current period.

Non-interest Income
Non-interest income was $131.9 million for the third quarter of 2020, up $16.4 million from the prior quarter driven primarily by the increase in net mortgage banking revenue and the sale of three store locations completed during the period.

Revenue from the origination and sale of residential mortgages was $98.7 million for the third quarter of 2020, an increase of $11.9 million from the prior quarter. This increase reflects a sequential quarter increase of $96.7 million or 5% in for-sale mortgage origination volume and an increase of 38 basis points in the home lending gain on sale margin to 5.13% for the third quarter of 2020. Of the current quarter's mortgage production, 46% related to purchase activity, compared to 34% for the prior quarter and 60% for the same period of the prior year.

Non-interest Expense
Non-interest expense was $190.2 million for the third quarter of 2020, up $8.3 million from the prior quarter level. This increase was primarily due to higher group insurance costs, lower deferred origination costs, higher mortgage commissions due to strong mortgage production, and higher other expenses, partially offset by lower FDIC assessment costs.

Goodwill
As described in our Q1 2020 10-Q, the Company completed the analysis of goodwill prior to filing the Q1 2020 10-Q with the Securities and Exchange Commission.  The Company updated its goodwill assessment for the Wholesale Bank and Retail Bank reporting units as of March 31, 2020, due to events and circumstances indicating potential impairment. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit.  Upon completing the quantitative impairment analysis, the Company recorded a goodwill impairment of $1.8 billion during the first quarter, which represented the entire amount of goodwill allocated to the Wholesale Bank and Retail Bank reporting units. The remaining goodwill of $2.7 million after the impairment relates to the Wealth Management reporting unit.  The goodwill impairment was material to reported earnings in the first quarter, but was a non-cash charge and had no effect on the Company's cash balances, liquidity or tangible equity. In addition, because goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company's well-capitalized regulatory capital ratios were not impacted by the impairment.

Capital
As of September 30, 2020, the Company's tangible book value per common share1 was $11.77, compared to $11.44 in the prior quarter and $11.27 in the same period of the prior year.

The Company's estimated total risk-based capital ratio was 14.9% and its estimated Tier 1 common to risk weighted assets ratio was 11.6% as of September 30, 2020. The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of September 30, 2020 are estimates, pending completion and filing of the Company's regulatory reports.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures.  The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs).  The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.

The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

(In thousands, except per share data)


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019

Total shareholders' equity


$

2,610,244



$

2,538,339



$

2,507,611



$

4,313,915



$

4,289,516


Subtract:











Goodwill


2,715



2,715



2,715



1,787,651



1,787,651


Other intangible assets, net


14,606



15,853



17,099



18,346



19,750


Tangible common shareholders' equity


$

2,592,923



$

2,519,771



$

2,487,797



$

2,507,918



$

2,482,115


Total assets


$

29,437,441



$

29,645,248



$

27,540,382



$

28,846,809



$

28,930,855


Subtract:











Goodwill


2,715



2,715



2,715



1,787,651



1,787,651


Other intangible assets, net


14,606



15,853



17,099



18,346



19,750


Tangible assets


$

29,420,120



$

29,626,680



$

27,520,568



$

27,040,812



$

27,123,454


Common shares outstanding at period end


220,222



220,219



220,175



220,229



220,212













Total shareholders' equity to total assets ratio


8.87

%


8.56

%


9.11

%


14.95

%


14.83

%

Tangible common equity ratio


8.81

%


8.51

%


9.04

%


9.27

%


9.15

%

Book value per common share


$

11.85



$

11.53



$

11.39



$

19.59



$

19.48


Tangible book value per common share


$

11.77



$

11.44



$

11.30



$

11.39



$

11.27


About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada.  Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.

Earnings Conference Call Information
The Company will host its third quarter 2020 earnings conference call on October 22, 2020, at 10:00 a.m. PT (1:00 p.m. ET).  During the call, the Company will provide an update on recent activities and discuss its third quarter 2020 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 4653597.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 4653597. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at umpquabank.com.

Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements.  Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about Next Gen 2.0 initiatives, the projected impact on our business operations of the COVID-19 global pandemic and future credit losses under CECL.  Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company's Board of Directors, and may be subject to regulatory approval or conditions.

 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)


Quarter Ended


% Change

(In thousands, except per share data)

Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year
over
Year

Interest income:














Loans and leases

$

229,457



$

235,174



$

245,993



$

262,109



$

266,111



(2)

%


(14)

%

Interest and dividends on investments:














  Taxable

10,168



9,015



16,605



13,361



12,546



13

%


(19)

%

  Exempt from federal income tax

1,490



1,520



1,562



1,638



1,727



(2)

%


(14)

%

  Dividends

710



568



678



579



599



25

%


19

%

Temporary investments and interest bearing deposits

474



403



3,331



4,343



4,204



18

%


(89)

%

  Total interest income

242,299



246,680



268,169



282,030



285,187



(2)

%


(15)

%

Interest expense:














Deposits

19,121



26,222



40,290



44,380



45,876



(27)

%


(58)

%

Securities sold under agreement to repurchase and federal funds purchased

84



194



395



431



448



(57)

%


(81)

%

Borrowings

3,271



3,839



4,046



5,080



4,238



(15)

%


(23)

%

Junior subordinated debentures

3,249



3,922



4,903



5,325



5,652



(17)

%


(43)

%

  Total interest expense

25,725



34,177



49,634



55,216



56,214



(25)

%


(54)

%

Net interest income

216,574



212,503



218,535



226,814



228,973



2

%


(5)

%

(Recapture) provision for credit losses

(338)



87,085



118,085



16,252



23,227



(100)

%


(101)

%

Non-interest income:














Service charges on deposits

14,438



11,831



15,638



16,656



16,627



22

%


(13)

%

Brokerage revenue

3,686



3,805



4,015



4,027



4,060



(3)

%


(9)

%

Residential mortgage banking revenue, net

90,377



83,877



17,540



34,050



47,000



8

%


92

%

Gain (loss) on sale of debt securities, net



323



(133)



2





(100)

%


nm


(Loss) gain on equity securities, net

(112)



240



814



(84)



257



(147)

%


(144)

%

Gain on loan and lease sales, net

1,092



1,074



1,167



4,603



1,762



2

%


(38)

%

BOLI income

2,087



2,116



2,129



2,078



2,067



(1)

%


1

%

Other income (expense)

20,356



12,214



(525)



22,417



16,739



67

%


22

%

Total non-interest income

131,924



115,480



40,645



83,749



88,512



14

%


49

%

Non-interest expense:














Salaries and employee benefits

120,337



116,676



109,774



108,847



106,819



3

%


13

%

Occupancy and equipment, net

36,720



36,171



37,001



36,513



35,446



2

%


4

%

Intangible amortization

1,247



1,246



1,247



1,404



1,405



0

%


(11)

%

FDIC assessments

2,989



3,971



2,542



2,867



2,587



(25)

%


16

%

Goodwill impairment





1,784,936







nm



nm


Other expenses

28,914



23,846



27,158



33,812



37,333



21

%


(23)

%

Total non-interest expense

190,207



181,910



1,962,658



183,443



183,590



5

%


4

%

Income (loss) before provision for income taxes

158,629



58,988



(1,821,563)



110,868



110,668



169

%


43

%

Provision for income taxes

33,758



6,062



30,384



27,118



26,166



457

%


29

%

Net income (loss)

$

124,871



$

52,926



$

(1,851,947)



$

83,750



$

84,502



136

%


48

%















Weighted average basic shares outstanding

220,221



220,210



220,216



220,222



220,285



0

%


0

%

Weighted average diluted shares outstanding

220,418



220,320



220,216



220,671



220,583



0

%


0

%

Earnings (loss) per common share – basic

$

0.57



$

0.24



$

(8.41)



$

0.38



$

0.38



138

%


50

%

Earnings (loss) per common share – diluted

$

0.57



$

0.24



$

(8.41)



$

0.38



$

0.38



138

%


50

%















nm = not meaningful














 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)



Nine Months Ended


% Change

(In thousands, except per share data)


Sep 30, 2020


Sep 30, 2019


Year
over
Year

Interest income:







Loans and leases


$

710,624



$

788,968



(10)

%

Interest and dividends on investments:







  Taxable


35,788



42,789



(16)

%

  Exempt from federal income tax


4,572



5,762



(21)

%

  Dividends


1,956



1,690



16

%

Temporary investments and interest bearing deposits


4,208



9,837



(57)

%

  Total interest income


757,148



849,046



(11)

%

Interest expense:







Deposits


85,633



123,561



(31)

%

Securities sold under agreement to repurchase and federal funds purchased


673



1,661



(59)

%

Borrowings


11,156



12,484



(11)

%

Junior subordinated debentures


12,074



17,520



(31)

%

  Total interest expense


109,536



155,226



(29)

%

Net interest income


647,612



693,820



(7)

%

Provision for credit losses


204,832



56,263



264

%

Non-interest income:







Service charges on deposits


41,907



47,858



(12)

%

Brokerage revenue


11,506



11,850



(3)

%

Residential mortgage banking revenue, net


191,794



67,760



183

%

Gain (loss) on sale of debt securities, net


190



(7,186)



(103)

%

Gain on equity securities, net


942



83,559



(99)

%

Gain on loan and lease sales, net


3,333



5,864



(43)

%

BOLI income


6,332



6,328



0

%

Other income


32,045



40,042



(20)

%

Total non-interest income


288,049



256,075



12

%

Non-interest expense:







Salaries and employee benefits


346,787



311,526



11

%

Occupancy and equipment, net


109,892



107,723



2

%

Intangible amortization


3,740



4,214



(11)

%

FDIC assessments


9,502



8,366



14

%

Goodwill impairment


1,784,936





nm


Other expenses


79,918



103,768



(23)

%

Total non-interest expense


2,334,775



535,597



336

%

(Loss) income before provision for income taxes


(1,603,946)



358,035



(548)

%

Provision for income taxes


70,204



87,690



(20)

%

Net (loss) income


$

(1,674,150)



$

270,345



(719)

%








Weighted average basic shares outstanding


220,216



220,379



0

%

Weighted average diluted shares outstanding


220,216



220,642



0

%

(Loss) earnings per common share – basic


$

(7.60)



$

1.23



(718)

%

(Loss) earnings per common share – diluted


$

(7.60)



$

1.23



(718)

%








nm = not meaningful







 

Umpqua Holdings Corporation
Consolidated Balance Sheets

(Unaudited)












% Change

(In thousands, except per share data)

Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year
over
Year

Assets:














Cash and due from banks

$

370,595



$

410,769



$

406,426



$

382,598



$

433,620



(10)

%


(15)

%

Interest bearing cash and temporary investments

1,849,132



1,853,505



1,251,290



980,158



757,824



0

%


144

%

Investment securities:














  Equity and other, at fair value

82,769



81,958



80,797



80,165



64,764



1

%


28

%

  Available for sale, at fair value

2,898,700



2,865,690



2,890,475



2,814,682



2,842,076



1

%


2

%

  Held to maturity, at amortized cost

3,088



3,143



3,200



3,260



3,320



(2)

%


(7)

%

Loans held for sale, at fair value

683,960



605,399



481,541



513,431



355,022



13

%


93

%

Loans and leases

22,426,473



22,671,455



21,251,478



21,195,684



21,520,794



(1)

%


4

%

Allowance for credit losses on loans and leases

(345,049)



(356,745)



(291,420)



(157,629)



(156,288)



(3)

%


121

%

  Net loans and leases

22,081,424



22,314,710



20,960,058



21,038,055



21,364,506



(1)

%


3

%

Restricted equity securities

50,062



54,062



58,062



46,463



54,463



(7)

%


(8)

%

Premises and equipment, net

185,104



192,041



195,390



201,460



203,391



(4)

%


(9)

%

Operating lease right-of-use assets

107,321



111,487



115,485



110,718



108,187



(4)

%


(1)

%

Goodwill

2,715



2,715



2,715



1,787,651



1,787,651



0

%


(100)

%

Other intangible assets, net

14,606



15,853



17,099



18,346



19,750



(8)

%


(26)

%

Residential mortgage servicing rights, at fair value

93,248



96,356



94,346



115,010



151,383



(3)

%


(38)

%

Bank owned life insurance

326,120



324,873



322,717



320,611



318,533



0

%


2

%

Other assets

688,597



712,687



660,781



434,201



466,365



(3)

%


48

%

Total assets

$

29,437,441



$

29,645,248



$

27,540,382



$

28,846,809



$

28,930,855



(1)

%


2

%

Liabilities:














Deposits

$

24,669,783



$

24,844,378



$

22,699,375



$

22,481,504



$

22,434,734



(1)

%


10

%

Securities sold under agreements to repurchase

388,028



398,414



346,245



311,308



296,717



(3)

%


31

%

Borrowings

996,520



1,096,559



1,196,597



906,635



1,106,674



(9)

%


(10)

%

Junior subordinated debentures, at fair value

247,045



232,936



195,521



274,812



267,798



6

%


(8)

%

Junior subordinated debentures, at amortized cost

88,325



88,382



88,439



88,496



88,553



0

%


0

%

Operating lease liabilities

115,790



119,885



123,962



119,429



116,924



(3)

%


(1)

%

Deferred tax liability, net

13,239



21,439



51,061



52,928



67,055



(38)

%


(80)

%

Other liabilities

308,467



304,916



331,571



297,782



262,884



1

%


17

%

  Total liabilities

26,827,197



27,106,909



25,032,771



24,532,894



24,641,339



(1)

%


9

%

Shareholders' equity:














Common stock

3,512,153



3,510,145



3,507,680



3,514,000



3,511,493



0

%


0

%

(Accumulated deficit) retained earnings

(1,036,931)



(1,115,414)



(1,168,340)



770,366



733,059



(7)

%


(241)

%

Accumulated other comprehensive income

135,022



143,608



168,271



29,549



44,964



(6)

%


200

%

  Total shareholders' equity

2,610,244



2,538,339



2,507,611



4,313,915



4,289,516



3

%


(39)

%

Total liabilities and shareholders' equity

$

29,437,441



$

29,645,248



$

27,540,382



$

28,846,809



$

28,930,855



(1)

%


2

%















Common shares outstanding at period end

220,222



220,219



220,175



220,229



220,212



0

%


0

%

Book value per common share

$

11.85



$

11.53



$

11.39



$

19.59



$

19.48



3

%


(39)

%

Tangible book value per common share

$

11.77



$

11.44



$

11.30



$

11.39



$

11.27



3

%


4

%

Tangible equity - common

$

2,592,923



$

2,519,771



$

2,487,797



$

2,507,918



$

2,482,115



3

%


4

%

Tangible common equity to tangible assets

8.81

%


8.51

%


9.04

%


9.27

%


9.15

%


0.30



(0.34)


 

Umpqua Holdings Corporation

Loan and Lease Portfolio

(Unaudited)


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


% Change

 (Dollars in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Loans and leases:














Commercial real estate:














  Non-owner occupied term, net

$

3,533,776



$

3,589,484



$

3,613,420



$

3,545,566



$

3,495,555



(2)

%


1

%

  Owner occupied term, net

2,411,098



2,459,954



2,472,187



2,496,088



2,566,299



(2)

%


(6)

%

  Multifamily, net

3,389,034



3,466,829



3,464,217



3,514,774



3,479,986



(2)

%


(3)

%

  Construction & development, net

757,462



662,703



667,975



678,740



771,214



14

%


(2)

%

  Residential development, net

163,400



164,180



187,594



189,010



191,500



0

%


(15)

%

Commercial:














  Term, net (1)

4,246,229



4,265,092



2,317,573



2,232,817



2,310,759



0

%


84

%

  Lines of credit & other, net

894,782



940,443



1,208,051



1,212,393



1,254,755



(5)

%


(29)

%

  Leases & equipment finance, net

1,496,650



1,522,369



1,492,762



1,465,489



1,485,753



(2)

%


1

%

Residential:














  Mortgage, net

4,042,416



4,056,588



4,193,908



4,215,424



4,245,674



0

%


(5)

%

  Home equity loans & lines, net

1,172,697



1,189,428



1,249,152



1,237,512



1,224,578



(1)

%


(4)

%

   Consumer & other, net

318,929



354,385



384,639



407,871



494,721



(10)

%


(36)

%

  Total loans, net of deferred fees and costs

$

22,426,473



$

22,671,455



$

21,251,478



$

21,195,684



$

21,520,794



(1)

%


4

%















(1)  The Bank participates in the Payroll Protection Program ("PPP") to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include 16,900 PPP loans, totaling $2.0 billion, net of deferred fees and costs as of September 30, 2020.















Loan and leases mix:














Commercial real estate:














   Non-owner occupied term, net

16

%


16

%


17

%


17

%


16

%





   Owner occupied term, net

11

%


11

%


12

%


12

%


12

%





   Multifamily, net

15

%


15

%


16

%


16

%


16

%





Construction & development, net

3

%


3

%


3

%


3

%


4

%





Residential development, net

1

%


1

%


1

%


1

%


1

%





Commercial:














  Term, net

19

%


19

%


11

%


10

%


11

%





  Lines of credit & other, net

4

%


4

%


5

%


6

%


6

%





  Leases & equipment finance, net

7

%


7

%


7

%


7

%


7

%





Residential:














  Mortgage, net

18

%


18

%


20

%


20

%


20

%





  Home equity loans & lines, net

5

%


5

%


6

%


6

%


5

%





   Consumer & other, net

1

%


1

%


2

%


2

%


2

%





Total

100

%


100

%


100

%


100

%


100

%





 

Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


% Change

 (Dollars in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Deposits:














Demand, non-interest bearing

$

9,475,244



$

9,172,210



$

7,169,907



$

6,913,375



$

7,123,180



3

%


33

%

Demand, interest bearing

2,931,990



2,813,722



2,482,908



2,524,534



2,406,404



4

%


22

%

Money market

7,160,838



7,262,777



7,082,011



6,930,815



6,646,383



(1)

%


8

%

Savings

1,848,639



1,730,051



1,486,909



1,471,475



1,469,302



7

%


26

%

Time

3,253,072



3,865,618



4,477,640



4,641,305



4,789,465



(16)

%


(32)

%

  Total

$

24,669,783



$

24,844,378



$

22,699,375



$

22,481,504



$

22,434,734



(1)

%


10

%















Total core deposits (1)

$

22,439,241



$

22,095,314



$

19,434,228



$

19,061,058



$

18,845,328



2

%


19

%















Deposit mix:














Demand, non-interest bearing

38

%


37

%


32

%


31

%


32

%





Demand, interest bearing

12

%


11

%


11

%


11

%


11

%





Money market

29

%


29

%


31

%


31

%


30

%





Savings

8

%


7

%


7

%


6

%


6

%





Time

13

%


16

%


19

%


21

%


21

%





  Total

100

%


100

%


100

%


100

%


100

%



















Number of open accounts:














Demand, non-interest bearing

423,658



423,456



416,270



415,254



413,633






Demand, interest bearing

73,812



74,813



75,514



75,900



76,390






Money market

59,083



59,445



59,203



58,888



58,796






Savings

162,234



161,710



159,870



159,948



160,673






Time

52,572



57,501



62,515



62,952



62,122






  Total

771,359



776,925



773,372



772,942



771,614




















Average balance per account:














Demand, non-interest bearing

$

22.4



$

21.7



$

17.2



$

16.6



$

17.2






Demand, interest bearing

39.7



37.6



32.9



33.3



31.5






Money market

121.2



122.2



119.6



117.7



113.0






Savings

11.4



10.7



9.3



9.2



9.1






Time

61.9



67.2



71.6



73.7



77.1






  Total

$

32.0



$

32.0



$

29.4



$

29.1



$

29.1







(1)  Core deposits are defined as total deposits less time deposits greater than $100,000.

 

Umpqua Holdings Corporation

Credit Quality – Non-performing Assets

 (Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year
over
Year

Non-performing assets:















Loans and leases on non-accrual status


$

26,425



$

32,412



$

39,128



$

26,244



$

31,636



(18)

%


(16)

%

Loans and leases past due 90+ days and accruing (1)


50,269



39,818



47,185



37,969



35,745



26

%


41

%

  Total non-performing loans and leases


76,694



72,230



86,313



64,213



67,381



6

%


14

%

Other real estate owned


2,369



2,578



3,020



3,295



4,026



(8)

%


(41)

%

  Total non-performing assets


$

79,063



$

74,808



$

89,333



$

67,508



$

71,407



6

%


11

%
















Performing restructured loans and leases


$

15,819



$

15,032



$

20,541



$

18,576



$

14,309



5

%


11

%

Loans and leases past due 31-89 days


$

66,155



$

40,583



$

59,962



$

41,882



$

44,390



63

%


49

%

Loans and leases past due 31-89 days to total loans and leases


0.29

%


0.18

%


0.28

%


0.20

%


0.21

%





Non-performing loans and leases to total loans and leases (1)


0.34

%


0.32

%


0.41

%


0.30

%


0.31

%





Non-performing assets to total assets(1)


0.27

%


0.25

%


0.32

%


0.23

%


0.25

%







(1)

Excludes certain mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $20.0 million, $2.6 million, $5.3 million, $4.3 million, and $5.2 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year over
Year

Allowance for credit losses on loans and leases (ACLLL)















Balance, beginning of period


$

356,745



$

291,420



$

157,629



$

156,288



$

151,069



22

%


136

%

Impact of adoption of CECL






49,999







nm



nm


Adjusted balance, beginning of period


356,745



291,420



207,628



156,288



151,069



22

%


136

%

Provision for credit losses on loans and leases (1)


1,785



81,484



105,502



16,252



23,227



(98)

%


(92)

%

Charge-offs


(16,646)



(19,453)



(24,455)



(18,734)



(23,112)



(14)

%


(28)

%

Recoveries


3,165



3,294



2,745



3,823



5,104



(4)

%


(38)

%

Net charge-offs


(13,481)



(16,159)



(21,710)



(14,911)



(18,008)



(17)

%


(25)

%

  Balance, end of period


$

345,049



$

356,745



$

291,420



$

157,629



$

156,288



(3)

%


121

%

Reserve for unfunded commitments















Balance, beginning of period


$

26,368



$

20,927



$

5,106



$

5,085



$

4,857



26

%


443

%

Impact of adoption of CECL






3,238







nm



nm


Adjusted balance, beginning of period


26,368



20,927



8,344



5,085



4,857



26

%


443

%

(Recapture) provision for credit losses on unfunded commitments (1)


(2,062)



5,441



12,583



21



228



(138)

%


nm


  Balance, end of period


24,306



26,368



20,927



5,106



5,085



(8)

%


378

%

Total Allowance for credit losses (ACL)


$

369,355



$

383,113



$

312,347



$

162,735



$

161,373



(4)

%


129

%
















Net charge-offs to average loans and leases (annualized)


0.24

%


0.29

%


0.41

%


0.28

%


0.34

%





Recoveries to gross charge-offs


19.01

%


16.93

%


11.22

%


20.41

%


22.08

%





ACLLL to loans and leases


1.54

%


1.57

%


1.37

%


0.74

%


0.73

%





ACL to loans and leases


1.65

%


1.69

%


1.47

%


0.77

%


0.75

%




















nm = not meaningful

















(1)

The total provision for credit losses as disclosed in the income statement includes a recapture of $61,000 related to the provision for accrued interest on loans deferred due to COVID-19, for the three months ended September 30, 2020 and an additional provision of $160,000 for the three months ended June 30, 2020, which are not included in the table above.

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Nine Months Ended


% Change

(Dollars in thousands)


Sep 30, 2020


Sep 30, 2019


Year over
Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$

157,629



$

144,871



9

%

Impact of adoption of CECL


49,999





nm


Adjusted balance, beginning of period


207,628



144,871



43

%

Provision for credit losses on loans and leases (1)


188,771



56,263



236

%

Charge-offs


(60,554)



(56,971)



6

%

Recoveries


9,204



12,125



(24)

%

Net charge-offs


(51,350)



(44,846)



15

%

  Balance, end of period


$

345,049



$

156,288



121

%

Reserve for unfunded commitments







Balance, beginning of period


$

5,106



$

4,523



13

%

Impact of adoption of CECL


3,238





nm


Adjusted balance, beginning of period


8,344



4,523



84

%

Provision for credit losses on unfunded commitments (1)


15,962



562



nm


  Balance, end of period


24,306



5,085



378

%

Total Allowance for credit losses (ACL)


$

369,355



$

161,373



129

%








Net charge-offs to average loans and leases (annualized)


0.31

%


0.29

%



Recoveries to gross charge-offs


15.20

%


21.28

%










nm = not meaningful









(1)

The total provision for credit losses for the nine months ended September 30, 2020, as disclosed on the income statement includes an additional $99,000 of provision related to accrued interest on loans deferred due to COVID-19, not included in the table above.

 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



Quarter Ended


% Change



Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year
over
Year

Average Rates:















Yield on loans held for sale


3.13

%


3.77

%


4.20

%


4.25

%


4.82

%


(0.64)



(1.69)


Yield on loans and leases


3.96

%


4.11

%


4.58

%


4.80

%


4.93

%


(0.15)



(0.97)


Yield on taxable investments


1.56

%


1.38

%


2.50

%


2.05

%


1.99

%


0.18



(0.43)


Yield on tax-exempt investments (1)


3.11

%


3.17

%


3.14

%


3.23

%


3.30

%


(0.06)



(0.19)


Yield on interest bearing cash and temporary investments


0.10

%


0.10

%


1.23

%


1.65

%


2.20

%




(2.10)


  Total yield on earning assets (1)


3.45

%


3.59

%


4.19

%


4.36

%


4.52

%


(0.14)



(1.07)

















Cost of interest bearing deposits


0.49

%


0.67

%


1.03

%


1.13

%


1.19

%


(0.18)



(0.70)


Cost of securities sold under agreements















to repurchase and fed funds purchased


0.09

%


0.21

%


0.47

%


0.56

%


0.57

%


(0.12)



(0.48)


Cost of borrowings


1.23

%


1.33

%


1.79

%


1.96

%


1.95

%


(0.10)



(0.72)


Cost of junior subordinated debentures


4.03

%


5.55

%


5.45

%


5.92

%


6.14

%


(1.52)



(2.11)


  Total cost of interest bearing liabilities


0.59

%


0.78

%


1.15

%


1.27

%


1.33

%


(0.19)



(0.74)

















Net interest spread (1)


2.85

%


2.81

%


3.04

%


3.09

%


3.19

%


0.04



(0.34)


Net interest margin (1)


3.08

%


3.09

%


3.41

%


3.51

%


3.63

%


(0.01)



(0.55)

















Performance Ratios:















Return on average assets


1.68

%


0.73

%


(25.82)

%


1.15

%


1.18

%


0.95



0.50


Return on average tangible assets


1.68

%


0.73

%


(27.53)

%


1.22

%


1.26

%


0.95



0.42


Return on average common equity


19.48

%


8.46

%


(174.94)

%


7.70

%


7.87

%


11.02



11.61


Return on average tangible common equity


19.62

%


8.53

%


(301.30)

%


13.24

%


13.67

%


11.09



5.95


Efficiency ratio – Consolidated


54.52

%


55.40

%


756.29

%


59.00

%


57.76

%


(0.88)



(3.24)


Efficiency ratio – Bank


53.41

%


54.17

%


752.92

%


57.56

%


56.22

%


(0.76)



(2.81)



(1)  Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



Nine Months Ended


% Change



Sep 30, 2020


Sep 30, 2019


Year over Year

Average Rates:







Yield on loans held for sale


3.61

%


5.15

%


(1.54)


Yield on loans and leases


4.21

%


5.02

%


(0.81)


Yield on taxable investments


1.81

%


2.20

%


(0.39)


Yield on tax-exempt investments (1)


3.14

%


3.45

%


(0.31)


Yield on interest bearing cash and temporary investments


0.38

%


2.32

%


(1.94)


  Total yield on earning assets (1)


3.73

%


4.63

%


(0.90)









Cost of interest bearing deposits


0.73

%


1.11

%


(0.38)


Cost of securities sold under agreements







to repurchase and fed funds purchased


0.25

%


0.68

%


(0.43)


Cost of borrowings


1.43

%


1.96

%


(0.53)


Cost of junior subordinated debentures


5.00

%


6.18

%


(1.18)


  Total cost of interest bearing liabilities


0.84

%


1.26

%


(0.42)









Net interest spread (1)


2.89

%


3.37

%


(0.48)


Net interest margin (1)


3.19

%


3.78

%


(0.59)









Performance Ratios:







Return on average assets


(7.67)

%


1.31

%


(8.98)


Return on average tangible assets


(7.83)

%


1.40

%


(9.23)


Return on average common equity


(72.01)

%


8.67

%


(80.68)


Return on average tangible common equity


(89.45)

%


15.32

%


(104.77)


Efficiency ratio – Consolidated


249.26

%


56.31

%


192.95


Efficiency ratio – Bank


247.93

%


54.70

%


193.23









(1)  Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.


 

Umpqua Holdings Corporation
Average Balances

(Unaudited)


Quarter Ended


% Change

(Dollars in thousands)

Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year over
Year

Temporary investments and interest bearing cash

$

1,827,818



$

1,563,753



$

1,084,854



$

1,045,975



$

759,416



17

%


141

%

Investment securities, taxable

2,797,547



2,777,154



2,760,461



2,719,089



2,648,092



1

%


6

%

Investment securities, tax-exempt

237,165



235,934



241,105



244,895



252,765



1

%


(6)

%

Loans held for sale

669,646



577,773



406,434



415,169



328,155



16

%


104

%

Loans and leases

22,560,076



22,428,142



21,196,989



21,379,239



21,170,915



1

%


7

%

  Total interest earning assets

28,092,252



27,582,756



25,689,843



25,804,367



25,159,343



2

%


12

%

Goodwill and other intangible assets, net

18,021



19,253



1,785,608



1,806,791



1,808,191



(6)

%


(99)

%

Total assets

29,533,871



29,066,775



28,844,773



28,981,387



28,356,982



2

%


4

%















Non-interest bearing demand deposits

9,335,350



8,484,684



6,880,457



7,037,320



6,880,093



10

%


36

%

Interest bearing deposits

15,451,816



15,803,595



15,695,309



15,550,483



15,289,464



(2)

%


1

%

  Total deposits

24,787,166



24,288,279



22,575,766



22,587,803



22,169,557



2

%


12

%

Interest bearing liabilities

17,205,775



17,625,888



17,301,712



17,237,770



16,827,917



(2)

%


2

%















Shareholders' equity - common

2,549,703



2,514,754



4,257,711



4,317,277



4,260,810



1

%


(40)

%

Tangible common equity (1)

2,531,682



2,495,501



2,472,103



2,510,486



2,452,619



1

%


3

%

 

Umpqua Holdings Corporation
Average Balances

(Unaudited)



Nine Months Ended

% Change

(Dollars in thousands)


Sep 30, 2020


Sep 30, 2019


Year over
Year

Temporary investments and interest bearing cash


$

1,493,352



$

567,709



163

%

Investment securities, taxable


2,778,460



2,696,001



3

%

Investment securities, tax-exempt


238,059



270,461



(12)

%

Loans held for sale


551,583



260,600



112

%

Loans and leases


22,063,582



20,724,820



6

%

  Total interest earning assets


27,125,036



24,519,591



11

%

Goodwill and other intangible assets, net


605,548



1,809,583



(67)

%

Total assets


29,149,758



27,631,632



5

%








Non-interest bearing demand deposits


8,237,095



6,648,638



24

%

Interest bearing deposits


15,649,765



14,891,271



5

%

  Total deposits


23,886,860



21,539,909



11

%

Interest bearing liabilities


17,377,259



16,448,027



6

%








Shareholders' equity - common


3,105,611



4,169,008



(26)

%

Tangible common equity (1)


2,500,063



2,359,425



6

%








(1)

Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders' equity less average goodwill and other intangible assets, net (excluding MSRs).

 

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)


Quarter Ended


September 30, 2020


June 30, 2020


September 30, 2019

 (Dollars in thousands)

Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates

INTEREST-EARNING ASSETS:


















Loans held for sale

$

669,646



$

5,248



3.13

%


$

577,773



$

5,443



3.77

%


$

328,155



$

3,953



4.82

%

Loans and leases (1)

22,560,076



224,209



3.96

%


22,428,142



229,731



4.11

%


21,170,915



262,158



4.93

%

Taxable securities

2,797,547



10,878



1.56

%


2,777,154



9,583



1.38

%


2,648,092



13,145



1.99

%

Non-taxable securities (2)

237,165



1,845



3.11

%


235,934



1,868



3.17

%


252,765



2,086



3.30

%

Temporary investments and interest-bearing cash

1,827,818



474



0.10

%


1,563,753



403



0.10

%


759,416



4,204



2.20

%

Total interest-earning assets

28,092,252



$

242,654



3.45

%


27,582,756



$

247,028



3.59

%


25,159,343



$

285,546



4.52

%

Other assets

1,441,619







1,484,019







3,197,639






Total assets

$

29,533,871







$

29,066,775







$

28,356,982






INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$

2,878,529



$

573



0.08

%


$

2,649,331



$

1,148



0.17

%


$

2,363,626



$

3,117



0.52

%

Money market deposits

7,179,705



2,284



0.13

%


7,275,041



4,037



0.22

%


6,962,370



16,575



0.94

%

Savings deposits

1,790,055



179



0.04

%


1,628,276



198



0.05

%


1,462,198



557



0.15

%

Time deposits

3,603,527



16,085



1.78

%


4,250,947



20,839



1.97

%


4,501,270



25,627



2.26

%

Total interest-bearing deposits

15,451,816



19,121



0.49

%


15,803,595



26,222



0.67

%


15,289,464



45,876



1.19

%

Repurchase agreements and federal funds purchased

378,844



84



0.09

%


375,098



194



0.21

%


313,089



448



0.57

%

Borrowings

1,054,153



3,271



1.23

%


1,163,065



3,839



1.33

%


860,285



4,238



1.95

%

Junior subordinated debentures

320,962



3,249



4.03

%


284,130



3,922



5.55

%


365,079



5,652



6.14

%

Total interest-bearing liabilities

17,205,775



$

25,725



0.59

%


17,625,888



$

34,177



0.78

%


16,827,917



$

56,214



1.33

%

Non-interest-bearing deposits

9,335,350







8,484,684







6,880,093






Other liabilities

443,043







441,449







388,162






Total liabilities

26,984,168







26,552,021







24,096,172






Common equity

2,549,703







2,514,754







4,260,810






Total liabilities and shareholders' equity

$

29,533,871







$

29,066,775







$

28,356,982






NET INTEREST INCOME



$

216,929







$

212,851







$

229,332




NET INTEREST SPREAD





2.85

%






2.81

%






3.19

%

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)





3.08

%






3.09

%






3.63

%



(1)

Non-accrual loans and leases are included in the average balance.   

(2)

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $355,000 for the three months ended September 30, 2020, as compared to $348,000 for June 30, 2020 and $359,000 for September 30, 2019

 

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)

(dollars in thousands)

Nine Months Ended


September 30, 2020


September 30, 2019


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates

INTEREST-EARNING ASSETS:












Loans held for sale

$

551,583



$

14,955



3.61

%


$

260,600



$

10,069



5.15

%

Loans and leases (1)

22,063,582



695,669



4.21

%


20,724,820



778,899



5.02

%

Taxable securities

2,778,460



37,744



1.81

%


2,696,001



44,479



2.20

%

Non-taxable securities (2)

238,059



5,608



3.14

%


270,461



6,991



3.45

%

Temporary investments and interest-bearing cash

1,493,352



4,208



0.38

%


567,709



9,837



2.32

%

Total interest-earning assets

27,125,036



$

758,184



3.73

%


24,519,591



$

850,275



4.63

%

Other assets

2,024,722







3,112,041






Total assets

$

29,149,758







$

27,631,632






INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$

2,667,160



$

5,264



0.26

%


$

2,338,787



$

8,555



0.49

%

Money market deposits

7,187,615



18,080



0.34

%


6,702,551



42,943



0.86

%

Savings deposits

1,635,064



618



0.05

%


1,468,449



1,237



0.11

%

Time deposits

4,159,926



61,671



1.98

%


4,381,484



70,826



2.16

%

Total interest-bearing deposits

15,649,765



85,633



0.73

%


14,891,271



123,561



1.11

%

Repurchase agreements and federal funds purchased

363,957



673



0.25

%


325,281



1,661



0.68

%

Borrowings

1,041,181



11,156



1.43

%


852,659



12,484



1.96

%

Junior subordinated debentures

322,356



12,074



5.00

%


378,816



17,520



6.18

%

Total interest-bearing liabilities

17,377,259



$

109,536



0.84

%


16,448,027



$

155,226



1.26

%

Non-interest-bearing deposits

8,237,095







6,648,638






Other liabilities

429,793







365,959






Total liabilities

26,044,147







23,462,624






Common equity

3,105,611







4,169,008






Total liabilities and shareholders' equity

$

29,149,758







$

27,631,632






NET INTEREST INCOME



$

648,648







$

695,049




NET INTEREST SPREAD





2.89

%






3.37

%

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)





3.19

%






3.78

%













(1)

Non-accrual loans and leases are included in the average balance.   

(2)

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $1.0 million for the nine months ended September 30, 2020, as compared to $1.2 million for the same period in 2019. 

 

Umpqua Holdings Corporation
Residential Mortgage Banking Activity

(Unaudited)


Quarter Ended


% Change

(Dollars in thousands)

Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Sep 30, 2019


Seq.
Quarter


Year
over
Year

Residential mortgage banking revenue:














Origination and sale

$

98,703



$

86,781



$

39,347



$

35,438



$

31,432



14

%


214

%

Servicing

8,796



8,533



8,880



8,981



11,358



3

%


(23)

%

Change in fair value of MSR asset:














Changes due to collection/realization of expected cash flows over time

(4,878)



(5,042)



(5,329)



(5,237)



(6,835)



(3)

%


(29)

%

Changes due to valuation inputs or assumptions

(12,244)



(6,395)



(25,358)



(5,132)



11,045



91

%


(211)

%

Total

$

90,377



$

83,877



$

17,540



$

34,050



$

47,000



8

%


92

%















Closed loan volume:














Portfolio

$

245,550



$

276,247



$

252,329



$

335,511



$

611,022



(11)

%


(60)

%

For-sale

1,922,789



1,826,095



1,148,184



1,060,016



844,442



5

%


128

%

Total

$

2,168,339



$

2,102,342



$

1,400,513



$

1,395,527



$

1,455,464



3

%


49

%















Gain on sale margin:














Based on for-sale volume

5.13

%


4.75

%


3.43

%


3.34

%


3.72

%


0.38



1.41
















Residential mortgage servicing rights:














Balance, beginning of period

$

96,356



$

94,346



$

115,010



$

151,383



$

139,780



2

%


(31)

%

Additions for new MSR capitalized

14,014



13,447



10,023



8,397



7,393



4

%


90

%

Sale of MSR assets







(34,401)





0

%


0

%

Changes in fair value of MSR asset:














Changes due to collection/realization of expected cash flows over time

(4,878)



(5,042)



(5,329)



(5,237)



(6,835)



(3)

%


(29)

%

Changes due to valuation inputs or assumptions

(12,244)



(6,395)



(25,358)



(5,132)



11,045



91

%


(211)

%

Balance, end of period

$

93,248



$

96,356



$

94,346



$

115,010



$

151,383



(3)

%


(38)

%















Residential mortgage loans serviced for others

$

12,964,361



$

12,746,125



$

12,533,045



$

12,276,943



$

15,707,519



2

%


(17)

%

MSR as % of serviced portfolio

0.72

%


0.76

%


0.75

%


0.94

%


0.96

%


(0.04)



(0.24)


 

Umpqua Holdings Corporation
Residential Mortgage Banking Activity

(Unaudited)


Nine Months Ended


% Change

(Dollars in thousands)

Sep 30, 2020


Sep 30, 2019


Year over
Year

Residential mortgage banking revenue:






Origination and sale

$

224,831



$

68,956



226

%

Servicing

26,209



33,218



(21)

%

Change in fair value of MSR asset:






Changes due to collection/realization of expected cash flows over time

(15,249)



(20,171)



(24)

%

Changes due to valuation inputs or assumptions

(43,997)



(14,243)



209

%

Total

$

191,794



$

67,760



183

%







Closed loan volume:






Portfolio

$

774,126



$

1,411,512



(45)

%

For-sale

4,897,068



2,029,682



141

%

Total

$

5,671,194



$

3,441,194



65

%







Gain on sale margin:






Based on for-sale volume

4.59

%


3.40

%


1.19








Residential mortgage servicing rights:






Balance, beginning of period

$

115,010



$

169,025



(32)

%

Additions for new MSR capitalized

37,484



16,772



123

%

Changes in fair value of MSR asset:






Changes due to collection/realization of expected cash flows over time

(15,249)



(20,171)



(24)

%

Changes due to valuation inputs or assumptions

(43,997)



(14,243)



209

%

Balance, end of period

$

93,248



$

151,383



(38)

%







 

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SOURCE Umpqua Holdings Corporation