Umpqua Reports Quarterly and Annual Results

PORTLAND, Ore., Jan. 20, 2021 /PRNewswire/ -- Umpqua Holdings Corporation (NASDAQ: UMPQ) (the "Company") reported net income of $150.7 million for the fourth quarter of 2020, compared to $124.9 million for the third quarter of 2020 and $83.8 million for the fourth quarter of 2019.  Earnings per diluted common share were $0.68 for the fourth quarter of 2020, compared to $0.57 for the third quarter of 2020 and $0.38 for the fourth quarter of 2019.

For the twelve months ended December 31, 2020, the Company reported net loss of $1.5 billion, or $6.92 per diluted common share primarily due to the goodwill impairment of $1.8 billion in Q1 2020, compared to net income of $354.1 million, or $1.60 per diluted common share, for the twelve months ended December 31, 2019.

"Umpqua's results in 2020 are a testament to the tremendous strength of this company.  Of the many challenges and opportunities that were presented this past year, our ability to stay agile, resilient, and ultimately deliver for our customers, both existing and new, was extraordinary" said Cort O'Haver, president and CEO of Umpqua Holdings Corporation.  "Our fourth quarter results represent our capacity to generate a return for our shareholders in a low interest rate environment. The company's record level of net income was driven by a number of strategic levers. These included the continued performance of our home lending division, accelerated Paycheck Protection Program (PPP) fee recognition due to borrower forgiveness processing, and careful management of the cost of interest bearing deposits. As outlined in the Next Gen 2.0 initiatives we shared last quarter, the company will continue to balance prioritization of strategic investments to propel balance sheet growth, including key human digital initiatives to advance the customer experience and gain market share, supported by increased operational excellence and efficiency."

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

• $12.1 million increase in compensation and benefits primarily due to the year end true up for performance based variable incentives and deferred compensation calculations compared to the prior quarter.
• $6.5 million in one time software impairment charges primarily due to technology contract exits completed during the quarter.
• $2.9 million in charitable contributions made in the quarter compared to $0.5 million in the prior quarter.
• $9.4 million loss on the fair value of the mortgage servicing rights (MSR) asset due to higher prepayment speeds versus modeled expectations compared to a $12.2 million loss in the prior quarter and a $5.1 million loss in the same period of the prior year.
• $4.0 million gain on the fair value of the debt capital market swap derivatives attributable to the increase in long-term interest rates during the quarter. This compares to the $1.8 million gain in the prior quarter and the $5.0 million gain in the same period of the prior year.

Full-Year 2020 Highlights (compared to prior year):

• Gross loan and lease balance growth of $583.7 million, or 3%;
• Deposit balance growth of $2.1 billion, or 10%;
• Net interest income decreased by $38.1 million, driven primarily by a decrease in short and long-term interest rates during the annual period which led to a decline in net interest margin;
• Provision for credit losses increased by $132.3 million primarily due to the implementation of the Current Expected Credit Loss (CECL) accounting standard which uses credit models to forecast future credit losses and fully reserve for the forecasted losses as soon as weak or deteriorating economic conditions are forecasted;
• Non-interest income increased by $72.2 million, driven primarily by a significant increase in net mortgage banking revenue;
• Non-interest expense increased by $1.8 billion, driven by the $1.8 billion goodwill impairment that was recorded in the first quarter and higher salaries and employee benefits expense due to the significant increase in annual net mortgage banking revenue, partially offset by lower occupancy, communications, marketing, services, and other expenses;
• Paid dividends of $0.84 per common share (equal to the $0.84 per share in the prior year) and repurchased 331,000 shares of common stock; and
• Book value decreased by 37%, or $7.31 per common share due to the aforementioned goodwill impairment, and tangible book value¹ increased by 7%, or $0.82 per common share.

Fourth Quarter 2020 Highlights (compared to prior quarter):

• Gross loan and lease balances decreased by $647.1 million, or 3%, partially due to processed PPP loan forgiveness, the transfer of $78.1 million in indirect auto loans to loans held for sale, and payoffs in residential real estate.
• Deposit balances decreased by $47.6 million or 0.2%, partially due to the decline in brokered and personal certificates of deposits, partially offset by balance growth in non-interest bearing demand, interest bearing demand, money market, and savings products;
• Net interest income increased by $18.3 million, attributable to the acceleration of PPP fees due to processed borrower forgiveness and lower costs of interest-bearing deposits;
• Provision for credit losses increased by $0.4 million, driven by the continued stabilization of credit quality metrics and economic forecasts used in credit models;
• Net charge-offs increased by 11 basis points to 0.35% of average loans and leases (annualized) primarily due to the previously disclosed leases within the FinPac portfolio that received applicable CARES Act relief and were not able to resume payments after the deferral period expired;
• Non-interest income decreased by $8.0 million reflecting the linked quarter decline in net mortgage banking revenue, partially offset by an increase in the gain on sale of Small Business Association (SBA) loans during the period;
• Non-interest expense increased by $21.1 million, primarily driven by a $12.1 million increase in compensation and benefits due to the year end true up of performance based variable incentives and deferred compensation calculations, $6.5 million in one time software impairment charges, and a $2.4 million increase in charitable contributions, partially offset by lower service expense;
• Non-performing assets to total assets decreased three basis points to 0.24%;
• Estimated total risk-based capital ratio of 15.6% and estimated Tier 1 common to risk weighted assets ratio of 12.3%; and
• Paid a quarterly cash dividend of $0.21 per common share on November 30, 2020, to shareholders of record as of November 20, 2020.

Balance Sheet
Total consolidated assets were $29.2 billion as of December 31, 2020, compared to $29.4 billion as of September 30, 2020 and $28.8 billion as of December 31, 2019.  Including secured off-balance sheet lines of credit, total available liquidity was $11.5 billion as of December 31, 2020, representing 39% of total assets and 47% of total deposits.

Gross loans and leases were $21.8 billion as of December 31, 2020, a decrease of $647.1 million from $22.4 billion as of September 30, 2020. The decrease in gross loans and leases is primarily due to processed PPP loan forgiveness, the transfer of $78.1 million in indirect auto loans to loans held for sale and payoffs in residential real estate.  Please refer to the additional loan tables in the Q4 2020 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $24.6 billion as of December 31, 2020, a decrease of $47.6 million from $24.7 billion as of September 30, 2020. This decrease was primarily attributable to the decline in brokered and personal certificates of deposit balances, partially offset by deposit balance growth in non-interest bearing demand, interest bearing demand, money market, and savings products.

Net Interest Income
Net interest income was $234.9 million for the fourth quarter of 2020, up $18.3 million from the prior quarter.  This increase was driven primarily by the acceleration of PPP fees due to processed borrower forgiveness applications and by lower costs of interest-bearing deposits.

The Company's net interest margin was 3.35% for the fourth quarter of 2020, up 27 basis points from 3.08% for the third quarter of 2020. This increase was driven primarily by the acceleration of PPP fees due to processed borrower forgiveness and lower funding costs.

Credit Quality
The allowance for credit losses was $348.7 million, or 1.60% of loans and leases, as of December 31, 2020, which was down from $369.4 million, or 1.65% of loans and leases, as of September 30, 2020.  The provision for credit losses was $29,000 for the fourth quarter of 2020, an increase of $367,000 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 increased by 11 basis points from the prior quarter to 0.35% of average loans and leases for the fourth quarter of 2020 (annualized). The increase in net charge-offs for the quarter was primarily due to the previously disclosed leases within the FinPac portfolio that received applicable CARES Act relief and were not able to resume payments after the deferral period expired.  As of December 31, 2020, non-performing assets was 0.24% of total assets, compared to 0.27% as of September 30, 2020 and 0.23% as of December 31, 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.  Due to the lack of significant changes in the credit quality of the loan portfolio and offsetting impacts within the economic forecasts compared to the prior quarter we recorded a minimal provision for credit losses in the fourth quarter.

Non-interest Income
Non-interest income was $124.0 million for the fourth quarter of 2020, down $8.0 million from the prior quarter driven primarily by the decrease in net mortgage banking revenue, partially offset by an increase in the gain on sale of SBA loans during the period.

Revenue from the origination and sale of residential mortgages was $83.4 million for the fourth quarter of 2020, a decrease of $15.3 million from the prior quarter. This decrease reflects a sequential quarter decrease of $153.4 million or 8% in for-sale mortgage origination volume and a decrease of 42 basis points in the home lending gain on sale margin to 4.71% for the fourth quarter of 2020.  Of the current quarter's mortgage production, 48% related to purchase activity, compared to 46% for the prior quarter and 55% for the same period in the prior year.

Non-interest Expense
Non-interest expense was $211.3 million for the fourth quarter of 2020, an increase of $21.1 million from the prior quarter level. This increase was driven by a $12.1 million increase in compensation and benefits due to the year end true up of performance based variable incentives and deferred compensation calculations, $6.5 million in one time software impairment charges due to technology contract exits, and a $2.4 million increase in charitable contributions, partially offset by lower services expense.

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 December 31, 2020, the Company's book value per common share increased to $12.28 from $11.85 in the prior quarter, and its tangible book value per common share¹ increased to $12.21 from $11.77 in the prior quarter. 

The Company's estimated total risk-based capital ratio was 15.6% and its estimated Tier 1 common equity to risk weighted assets ratio was 12.3% as of December 31, 2020.  The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of December 31, 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).

 

(Dollars in thousands, except per share data)		Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Total shareholders' equity		$	2,704,577			$	2,610,244			$	2,538,339			$	2,507,611			$	4,313,915
Subtract:
Goodwill		2,715				2,715				2,715				2,715				1,787,651
Other intangible assets, net		13,360				14,606				15,853				17,099				18,346
Tangible common shareholders' equity		$	2,688,502			$	2,592,923			$	2,519,771			$	2,487,797			$	2,507,918
Total assets		$	29,235,175			$	29,437,441			$	29,645,248			$	27,540,382			$	28,846,809
Subtract:
Goodwill		2,715				2,715				2,715				2,715				1,787,651
Other intangible assets, net		13,360				14,606				15,853				17,099				18,346
Tangible assets		$	29,219,100			$	29,420,120			$	29,626,680			$	27,520,568			$	27,040,812
Common shares outstanding at period end		220,226				220,222				220,219				220,175				220,229
Total shareholders' equity to total assets ratio		9.25		%		8.87		%		8.56		%		9.11		%		14.95		%
Tangible common equity ratio		9.20		%		8.81		%		8.51		%		9.04		%		9.27		%
Book value per common share		$	12.28			$	11.85			$	11.53			$	11.39			$	19.59
Tangible book value per common share		$	12.21			$	11.77			$	11.44			$	11.30			$	11.39

 

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 www.umpquabank.com.

Earnings Conference Call Information
The Company will host its fourth quarter 2020 earnings conference call on Thursday, January 21, 2021, 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 fourth quarter and full year 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: 7096769.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 7096769.  The earnings conference call will also be available as an audiocast, which can be accessed on the Company's investor relations page at www.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 the impact of Next Gen 2.0 initiatives, 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; whether our human digital initiatives and strategic investments result in improved customer experience, growth and increased market share; 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)		Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Seq. Quarter			Year over Year
Interest income:
Loans and leases		$	240,815			$	229,457			$	235,174			$	245,993			$	262,109			5	%		(8)	%
Interest and dividends on investments:
Taxable		11,951				10,168				9,015				16,605				13,361				18	%		(11)	%
Exempt from federal income tax		1,523				1,490				1,520				1,562				1,638				2	%		(7)	%
Dividends		659				710				568				678				579				(7)	%		14	%
Temporary investments and interest bearing deposits		531				474				403				3,331				4,343				12	%		(88)	%
Total interest income		255,479				242,299				246,680				268,169				282,030				5	%		(9)	%
Interest expense:
Deposits		14,567				19,121				26,222				40,290				44,380				(24)	%		(67)	%
Securities sold under agreement to repurchase and federal funds purchased		93				84				194				395				431				11	%		(78)	%
Borrowings		2,765				3,271				3,839				4,046				5,080				(15)	%		(46)	%
Junior subordinated debentures		3,147				3,249				3,922				4,903				5,325				(3)	%		(41)	%
Total interest expense		20,572				25,725				34,177				49,634				55,216				(20)	%		(63)	%
Net interest income		234,907				216,574				212,503				218,535				226,814				8	%		4	%
Provision (recapture) for credit losses		29				(338)				87,085				118,085				16,252				(109)	%		(100)	%
Non-interest income:
Service charges on deposits		16,654				14,438				11,831				15,638				16,656				15	%		0	%
Brokerage revenue		4,093				3,686				3,805				4,015				4,027				11	%		2	%
Residential mortgage banking revenue, net		79,028				90,377				83,877				17,540				34,050				(13)	%		132	%
Gain (loss) on sale of debt securities, net		—				—				323				(133)				2				0	%		(100)	%
(Loss) gain on equity securities, net		(173)				(112)				240				814				(84)				54	%		106	%
Gain on loan and lease sales, net		3,374				1,092				1,074				1,167				4,603				209	%		(27)	%
BOLI income		2,067				2,087				2,116				2,129				2,078				(1)	%		(1)	%
Other income (expense)		18,917				20,356				12,214				(525)				22,417				(7)	%		(16)	%
Total non-interest income		123,960				131,924				115,480				40,645				83,749				(6)	%		48	%
Non-interest expense:
Salaries and employee benefits		132,460				120,337				116,676				109,774				108,847				10	%		22	%
Occupancy and equipment, net		41,758				36,720				36,171				37,001				36,513				14	%		14	%
Intangible amortization		1,246				1,247				1,246				1,247				1,404				0	%		(11)	%
FDIC assessments		3,014				2,989				3,971				2,542				2,867				1	%		5	%
Goodwill impairment		—				—				—				1,784,936				—				nm			nm
Other expenses		32,834				28,914				23,846				27,158				33,812				14	%		(3)	%
Total non-interest expense		211,312				190,207				181,910				1,962,658				183,443				11	%		15	%
Income (loss) before provision for income taxes		147,526				158,629				58,988				(1,821,563)				110,868				(7)	%		33	%
(Benefit) provision for income taxes		(3,204)				33,758				6,062				30,384				27,118				(109)	%		(112)	%
Net income (loss)		$	150,730			$	124,871			$	52,926			$	(1,851,947)			$	83,750			21	%		80	%
Weighted average basic shares outstanding		220,225				220,221				220,210				220,216				220,222				0	%		0	%
Weighted average diluted shares outstanding		220,663				220,418				220,320				220,216				220,671				0	%		0	%
Earnings per common share – basic		$	0.68			$	0.57			$	0.24			$	(8.41)			$	0.38			19	%		79	%
Earnings per common share – diluted		$	0.68			$	0.57			$	0.24			$	(8.41)			$	0.38			19	%		79	%
nm = not meaningful

 

 

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
		Year Ended								% Change
(In thousands, except per share data)		Dec 31, 2020				Dec 31, 2019				Year over Year
Interest income:
Loans and leases		$	951,439			$	1,051,077			(9)	%
Interest and dividends on investments:
Taxable		47,739				56,150				(15)	%
Exempt from federal income tax		6,095				7,400				(18)	%
Dividends		2,615				2,269				15	%
Temporary investments and interest bearing deposits		4,739				14,180				(67)	%
Total interest income		1,012,627				1,131,076				(10)	%
Interest expense:
Deposits		100,200				167,941				(40)	%
Securities sold under agreement to repurchase and federal funds purchased		766				2,092				(63)	%
Borrowings		13,921				17,564				(21)	%
Junior subordinated debentures		15,221				22,845				(33)	%
Total interest expense		130,108				210,442				(38)	%
Net interest income		882,519				920,634				(4)	%
Provision for credit losses		204,861				72,515				183	%
Non-interest income:
Service charges on deposits		58,561				64,514				(9)	%
Brokerage revenue		15,599				15,877				(2)	%
Residential mortgage banking revenue, net		270,822				101,810				166	%
Gain (loss) on sale of debt securities, net		190				(7,184)				(103)	%
Gain on equity securities, net		769				83,475				(99)	%
Gain on loan and lease sales, net		6,707				10,467				(36)	%
BOLI income		8,399				8,406				0	%
Other income		50,962				62,459				(18)	%
Total non-interest income		412,009				339,824				21	%
Non-interest expense:
Salaries and employee benefits		479,247				420,373				14	%
Occupancy and equipment, net		151,650				144,236				5	%
Intangible amortization		4,986				5,618				(11)	%
FDIC assessments		12,516				11,233				11	%
Goodwill impairment		1,784,936				—				nm
Other expenses		112,752				137,580				(18)	%
Total non-interest expense		2,546,087				719,040				254	%
(Loss) income before provision for income taxes		(1,456,420)				468,903				(411)	%
Provision for income taxes		67,000				114,808				(42)	%
Net (loss) income		$	(1,523,420)			$	354,095			(530)	%
Weighted average basic shares outstanding		220,218				220,339				0	%
Weighted average diluted shares outstanding		220,218				220,650				0	%
Earnings per common share – basic		$	(6.92)			$	1.61			(530)	%
Earnings per common share – diluted		$	(6.92)			$	1.60			(533)	%
nm = not meaningful

 

 

 

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																					% Change
(In thousands, except per share data)	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Seq.  Quarter			Year over Year
Assets:
Cash and due from banks	$	370,219			$	370,595			$	410,769			$	406,426			$	382,598			0	%		(3)	%
Interest bearing cash and temporary investments	2,202,962				1,849,132				1,853,505				1,251,290				980,158				19	%		125	%
Investment securities:
Equity and other, at fair value	83,077				82,769				81,958				80,797				80,165				0	%		4	%
Available for sale, at fair value	2,932,558				2,898,700				2,865,690				2,890,475				2,814,682				1	%		4	%
Held to maturity, at amortized cost	3,034				3,088				3,143				3,200				3,260				(2)	%		(7)	%
Loans held for sale, at fair value	766,225				683,960				605,399				481,541				513,431				12	%		49	%
Loans and leases	21,779,367				22,426,473				22,671,455				21,251,478				21,195,684				(3)	%		3	%
Allowance for credit losses on loans and leases	(328,401)				(345,049)				(356,745)				(291,420)				(157,629)				(5)	%		108	%
Net loans and leases	21,450,966				22,081,424				22,314,710				20,960,058				21,038,055				(3)	%		2	%
Restricted equity securities	41,666				50,062				54,062				58,062				46,463				(17)	%		(10)	%
Premises and equipment, net	178,050				185,104				192,041				195,390				201,460				(4)	%		(12)	%
Operating lease right-of-use assets	104,937				107,321				111,487				115,485				110,718				(2)	%		(5)	%
Goodwill	2,715				2,715				2,715				2,715				1,787,651				0	%		(100)	%
Other intangible assets, net	13,360				14,606				15,853				17,099				18,346				(9)	%		(27)	%
Residential mortgage servicing rights, at fair value	92,907				93,248				96,356				94,346				115,010				0	%		(19)	%
Bank owned life insurance	323,470				326,120				324,873				322,717				320,611				(1)	%		1	%
Other assets	669,029				688,597				712,687				660,781				434,201				(3)	%		54	%
Total assets	$	29,235,175			$	29,437,441			$	29,645,248			$	27,540,382			$	28,846,809			(1)	%		1	%
Liabilities:
Deposits	$	24,622,201			$	24,669,783			$	24,844,378			$	22,699,375			$	22,481,504			0	%		10	%
Securities sold under agreements to repurchase	375,384				388,028				398,414				346,245				311,308				(3)	%		21	%
Borrowings	771,482				996,520				1,096,559				1,196,597				906,635				(23)	%		(15)	%
Junior subordinated debentures, at fair value	255,217				247,045				232,936				195,521				274,812				3	%		(7)	%
Junior subordinated debentures, at amortized cost	88,268				88,325				88,382				88,439				88,496				0	%		0	%
Operating lease liabilities	113,593				115,790				119,885				123,962				119,429				(2)	%		(5)	%
Deferred tax liability, net	5,441				13,239				21,439				51,061				52,928				(59)	%		(90)	%
Other liabilities	299,012				308,467				304,916				331,571				297,782				(3)	%		0	%
Total liabilities	26,530,598				26,827,197				27,106,909				25,032,771				24,532,894				(1)	%		8	%
Shareholders' equity:
Common stock	3,514,599				3,512,153				3,510,145				3,507,680				3,514,000				0	%		0	%
(Accumulated deficit) retained earnings	(932,767)				(1,036,931)				(1,115,414)				(1,168,340)				770,366				(10)	%		(221)	%
Accumulated other comprehensive income	122,745				135,022				143,608				168,271				29,549				(9)	%		315	%
Total shareholders' equity	2,704,577				2,610,244				2,538,339				2,507,611				4,313,915				4	%		(37)	%
Total liabilities and shareholders' equity	$	29,235,175			$	29,437,441			$	29,645,248			$	27,540,382			$	28,846,809			(1)	%		1	%
Common shares outstanding at period end	220,226				220,222				220,219				220,175				220,229				0	%		0	%
Book value per common share	$	12.28			$	11.85			$	11.53			$	11.39			$	19.59			4	%		(37)	%
Tangible book value per common share	$	12.21			$	11.77			$	11.44			$	11.30			$	11.39			4	%		7	%
Tangible equity - common	$	2,688,502			$	2,592,923			$	2,519,771			$	2,487,797			$	2,507,918			4	%		7	%
Tangible common equity to tangible assets	9.20		%		8.81		%		8.51		%		9.04		%		9.27		%		0.39			(0.07)

 

 

Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)
(Dollars in thousands)		Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net		$	3,505,802			$	3,533,776			$	3,589,484			$	3,613,420			$	3,545,566			(1)	%		(1)	%
Owner occupied term, net		2,333,945				2,411,098				2,459,954				2,472,187				2,496,088				(3)	%		(6)	%
Multifamily, net		3,349,196				3,389,034				3,466,829				3,464,217				3,514,774				(1)	%		(5)	%
Construction & development, net		828,478				757,462				662,703				667,975				678,740				9	%		22	%
Residential development, net		192,761				163,400				164,180				187,594				189,010				18	%		2	%
Commercial:
Term, net (1)		4,024,467				4,246,229				4,265,092				2,317,573				2,232,817				(5)	%		80	%
Lines of credit & other, net		862,760				894,782				940,443				1,208,051				1,212,393				(4)	%		(29)	%
Leases & equipment finance, net		1,456,630				1,496,650				1,522,369				1,492,762				1,465,489				(3)	%		(1)	%
Residential real estate:
Mortgage, net		3,871,906				4,042,416				4,056,588				4,193,908				4,215,424				(4)	%		(8)	%
Home equity loans & lines, net		1,136,064				1,172,697				1,189,428				1,249,152				1,237,512				(3)	%		(8)	%
Consumer & other, net		217,358				318,929				354,385				384,639				407,871				(32)	%		(47)	%
Total loans, net of deferred fees and costs		$	21,779,367			$	22,426,473			$	22,671,455			$	21,251,478			$	21,195,684			(3)	%		3	%
(1)    The Bank participates in 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 14,900 PPP loans, totaling $1.8 billion, net of deferred fees and costs as of December 31, 2020.
Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net		16		%		16		%		16		%		17		%		17		%
Owner occupied term, net		11		%		11		%		11		%		12		%		12		%
Multifamily, net		15		%		15		%		15		%		16		%		16		%
Construction & development, net		4		%		3		%		3		%		3		%		3		%
Residential development, net		1		%		1		%		1		%		1		%		1		%
Commercial:
Term, net		18		%		19		%		19		%		11		%		10		%
Lines of credit & other, net		4		%		4		%		4		%		5		%		6		%
Leases & equipment finance, net		7		%		7		%		7		%		7		%		7		%
Residential real estate:
Mortgage, net		18		%		18		%		18		%		20		%		20		%
Home equity loans & lines, net		5		%		5		%		5		%		6		%		6		%
Consumer & other, net		1		%		1		%		1		%		2		%		2		%
Total		100		%		100		%		100		%		100		%		100		%

 

 

 

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)		Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Deposits:
Demand, non-interest bearing		$	9,632,773			$	9,475,244			$	9,172,210			$	7,169,907			$	6,913,375			2	%		39	%
Demand, interest bearing		3,051,487				2,931,990				2,813,722				2,482,908				2,524,534				4	%		21	%
Money market		7,173,920				7,160,838				7,262,777				7,082,011				6,930,815				0	%		4	%
Savings		1,912,752				1,848,639				1,730,051				1,486,909				1,471,475				3	%		30	%
Time		2,851,269				3,253,072				3,865,618				4,477,640				4,641,305				(12)	%		(39)	%
Total		$	24,622,201			$	24,669,783			$	24,844,378			$	22,699,375			$	22,481,504			0	%		10	%
Total core deposits (1)		$	22,705,377			$	22,439,241			$	22,095,314			$	19,434,228			$	19,061,058			1	%		19	%
Deposit mix:
Demand, non-interest bearing		39		%		38		%		37		%		32		%		31		%
Demand, interest bearing		12		%		12		%		11		%		11		%		11		%
Money market		29		%		29		%		29		%		31		%		31		%
Savings		8		%		8		%		7		%		7		%		6		%
Time		12		%		13		%		16		%		19		%		21		%
Total		100		%		100		%		100		%		100		%		100		%
Number of open accounts:
Demand, non-interest bearing		420,050				423,658				423,456				416,270				415,254
Demand, interest bearing		72,811				73,812				74,813				75,514				75,900
Money market		58,609				59,083				59,445				59,203				58,888
Savings		160,192				162,234				161,710				159,870				159,948
Time		48,292				52,572				57,501				62,515				62,952
Total		759,954				771,359				776,925				773,372				772,942
Average balance per account:
Demand, non-interest bearing		$	22.9			$	22.4			$	21.7			$	17.2			$	16.6
Demand, interest bearing		41.9				39.7				37.6				32.9				33.3
Money market		122.4				121.2				122.2				119.6				117.7
Savings		11.9				11.4				10.7				9.3				9.2
Time		59.0				61.9				67.2				71.6				73.7
Total		$	32.4			$	32.0			$	32.0			$	29.4			$	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)	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Seq. Quarter			Year over Year
Non-performing assets:
Loans and leases on non-accrual status	$	31,076			$	26,425			$	32,412			$	39,128			$	26,244			18	%		18	%
Loans and leases past due 90+ days and accruing (1)	36,361				50,269				39,818				47,185				37,969				(28)	%		(4)	%
Total non-performing loans and leases	67,437				76,694				72,230				86,313				64,213				(12)	%		5	%
Other real estate owned	1,810				2,369				2,578				3,020				3,295				(24)	%		(45)	%
Total non-performing assets	$	69,247			$	79,063			$	74,808			$	89,333			$	67,508			(12)	%		3	%
Performing restructured loans and leases	$	14,991			$	15,819			$	15,032			$	20,541			$	18,576			(5)	%		(19)	%
Loans and leases past due 31-89 days	$	72,047			$	66,155			$	40,583			$	59,962			$	41,882			9	%		72	%
Loans and leases past due 31-89 days to total loans and leases	0.33		%		0.29		%		0.18		%		0.28		%		0.20		%
Non-performing loans and leases to total loans and leases (1)	0.31		%		0.34		%		0.32		%		0.41		%		0.30		%
Non-performing assets to total assets (1)	0.24		%		0.27		%		0.25		%		0.32		%		0.23		%

(1)

Excludes non-performing 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, and $4.3 million at September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively. There were no non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so at December 31, 2020.

 

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Seq. Quarter			Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	345,049			$	356,745			$	291,420			$	157,629			$	156,288			(3)	%		121	%
Impact of adoption of CECL		—				—				—				49,999				—				nm			nm
Adjusted balance, beginning of period		345,049				356,745				291,420				207,628				156,288				(3)	%		121	%
Provision for credit losses on loans and leases (1)		3,104				1,785				81,484				105,502				16,252				74	%		(81)	%
Charge-offs		(23,942)				(16,646)				(19,453)				(24,455)				(18,734)				44	%		28	%
Recoveries		4,190				3,165				3,294				2,745				3,823				32	%		10	%
Net charge-offs		(19,752)				(13,481)				(16,159)				(21,710)				(14,911)				47	%		32	%
Balance, end of period		$	328,401			$	345,049			$	356,745			$	291,420			$	157,629			(5)	%		108	%
Reserve for unfunded commitments
Balance, beginning of period		$	24,306			$	26,368			$	20,927			$	5,106			$	5,085			(8)	%		378	%
Impact of adoption of CECL		—				—				—				3,238				—				nm			nm
Adjusted balance, beginning of period		24,306				26,368				20,927				8,344				5,085				(8)	%		378	%
(Recapture) provision for credit losses on unfunded commitments (1)		(4,020)				(2,062)				5,441				12,583				21				95	%		nm
Balance, end of period		20,286				24,306				26,368				20,927				5,106				(17)	%		297	%
Total Allowance for credit losses (ACL)		$	348,687			$	369,355			$	383,113			$	312,347			$	162,735			(6)	%		114	%
Net charge-offs to average loans and leases (annualized)		0.35		%		0.24		%		0.29		%		0.41		%		0.28		%
Recoveries to gross charge-offs		17.50		%		19.01		%		16.93		%		11.22		%		20.41		%
ACLLL to loans and leases		1.51		%		1.54		%		1.57		%		1.37		%		0.74		%
ACL to loans and leases		1.60		%		1.65		%		1.69		%		1.47		%		0.77		%
nm = not meaningful

(1)

The total provision for credit losses as disclosed in the consolidated statement of operations includes an additional provision of $945,000 related to the provision for accrued interest on loans deferred due to COVID-19, a recapture of $61,000 and an additional provision of $160,000 for the three months ended December 31, 2020, September 30, 2020 and June 30, 2020, respectively, which are not included in the table above.

 

 

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Year Ended								% Change
(Dollars in thousands)		Dec 31, 2020				Dec 31, 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)		191,875				72,515				165	%
Charge-offs		(84,496)				(75,705)				12	%
Recoveries		13,394				15,948				(16)	%
Net charge-offs		(71,102)				(59,757)				19	%
Balance, end of period		$	328,401			$	157,629			108	%
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)		11,942				583				1,948	%
Balance, end of period		20,286				5,106				297	%
Total Allowance for credit losses (ACL)		$	348,687			$	162,735			114	%
Net charge-offs to average loans and leases		0.32		%		0.29		%
Recoveries to gross charge-offs		15.85		%		21.07		%
nm = not meaningful

(1)	The total provision for credit losses for the year ended December 31, 2020, as disclosed in the consolidated statement of operations includes an additional $1.0 million 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
		Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Seq. Quarter			Year over Year
Average Rates:
Yield on loans held for sale		3.19	%		3.13	%		3.77	%		4.20	%		4.25	%		0.06			(1.06)
Yield on loans and leases		4.24	%		3.96	%		4.11	%		4.58	%		4.80	%		0.28			(0.56)
Yield on taxable investments		1.77	%		1.56	%		1.38	%		2.50	%		2.05	%		0.21			(0.28)
Yield on tax-exempt investments (1)		3.08	%		3.11	%		3.17	%		3.14	%		3.23	%		(0.03)			(0.15)
Yield on interest bearing cash and temporary investments		0.10	%		0.10	%		0.10	%		1.23	%		1.65	%		—			(1.55)
Total yield on earning assets (1)		3.64	%		3.45	%		3.59	%		4.19	%		4.36	%		0.19			(0.72)
Cost of interest bearing deposits		0.38	%		0.49	%		0.67	%		1.03	%		1.13	%		(0.11)			(0.75)
Cost of securities sold under agreements
to repurchase and fed funds purchased		0.09	%		0.09	%		0.21	%		0.47	%		0.56	%		—			(0.47)
Cost of borrowings		1.18	%		1.23	%		1.33	%		1.79	%		1.96	%		(0.05)			(0.78)
Cost of junior subordinated debentures		3.73	%		4.03	%		5.55	%		5.45	%		5.92	%		(0.30)			(2.19)
Total cost of interest bearing liabilities		0.49	%		0.59	%		0.78	%		1.15	%		1.27	%		(0.10)			(0.78)
Net interest spread (1)		3.15	%		2.85	%		2.81	%		3.04	%		3.09	%		0.30			0.06
Net interest margin (1)		3.35	%		3.08	%		3.09	%		3.41	%		3.51	%		0.27			(0.16)
Performance Ratios:
Return on average assets		2.04	%		1.68	%		0.73	%		(25.82)	%		1.15	%		0.36			0.89
Return on average tangible assets		2.04	%		1.68	%		0.73	%		(27.53)	%		1.22	%		0.36			0.82
Return on average common equity		22.92	%		19.48	%		8.46	%		(174.94)	%		7.70	%		3.44			15.22
Return on average tangible common equity		23.07	%		19.62	%		8.53	%		(301.30)	%		13.24	%		3.45			9.83
Efficiency ratio – Consolidated		58.82	%		54.52	%		55.40	%		756.29	%		59.00	%		4.30			(0.18)
Efficiency ratio – Bank		57.77	%		53.41	%		54.17	%		752.92	%		57.56	%		4.36			0.21

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

 

 

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Year Ended						% Change
		Dec 31, 2020			Dec 31, 2019			Year over Year
Average Rates:
Yield on loans held for sale		3.49	%		4.83	%		(1.34)
Yield on loans and leases		4.22	%		4.96	%		(0.74)
Yield on taxable investments		1.80	%		2.16	%		(0.36)
Yield on tax-exempt investments (1)		3.12	%		3.40	%		(0.28)
Yield on temporary investments and interest bearing cash		0.29	%		2.06	%		(1.77)
Total yield on earning assets (1)		3.71	%		4.56	%		(0.85)
Cost of interest bearing deposits		0.65	%		1.12	%		(0.47)
Cost of securities sold under agreements
to repurchase and fed funds purchased		0.21	%		0.65	%		(0.44)
Cost of borrowings		1.37	%		1.96	%		(0.59)
Cost of junior subordinated debentures		4.67	%		6.12	%		(1.45)
Total cost of interest bearing liabilities		0.75	%		1.26	%		(0.51)
Net interest spread (1)		2.96	%		3.30	%		(0.34)
Net interest margin (1)		3.23	%		3.71	%		(0.48)
Performance Ratios:
Return on average assets		(5.22)	%		1.27	%		(6.49)
Return on average tangible assets		(5.30)	%		1.35	%		(6.65)
Return on average common equity		(51.08)	%		8.42	%		(59.50)
Return on average tangible common equity		(60.34)	%		14.77	%		(75.11)
Efficiency ratio – Consolidated		196.47	%		56.97	%		139.50
Efficiency ratio – Bank		195.33	%		55.40	%		139.93

(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)	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Seq. Quarter			Year over Year
Temporary investments and interest bearing cash	$	2,066,572			$	1,827,818			$	1,563,753			$	1,084,854			$	1,045,975			13	%		98	%
Investment securities, taxable	2,850,550				2,797,547				2,777,154				2,760,461				2,719,089				2	%		5	%
Investment securities, tax-exempt	245,997				237,165				235,934				241,105				244,895				4	%		0	%
Loans held for sale	696,688				669,646				577,773				406,434				415,169				4	%		68	%
Loans and leases	22,138,283				22,560,076				22,428,142				21,196,989				21,379,239				(2)	%		4	%
Total interest earning assets	27,998,090				28,092,252				27,582,756				25,689,843				25,804,367				0	%		9	%
Goodwill and other intangible assets, net	16,775				18,021				19,253				1,785,608				1,806,791				(7)	%		(99)	%
Total assets	29,396,311				29,533,871				29,066,775				28,844,773				28,981,387				0	%		1	%
Non-interest bearing demand deposits	9,587,081				9,335,350				8,484,684				6,880,457				7,037,320				3	%		36	%
Interest bearing deposits	15,165,049				15,451,816				15,803,595				15,695,309				15,550,483				(2)	%		(2)	%
Total deposits	24,752,130				24,787,166				24,288,279				22,575,766				22,587,803				0	%		10	%
Interest bearing liabilities	16,822,808				17,205,775				17,625,888				17,301,712				17,237,770				(2)	%		(2)	%
Shareholders' equity - common	2,615,676				2,549,703				2,514,754				4,257,711				4,317,277				3	%		(39)	%
Tangible common equity (1)	2,598,901				2,531,682				2,495,501				2,472,103				2,510,486				3	%		4	%

 

Umpqua Holdings Corporation Average Balances
(Unaudited)
		Year Ended								% Change
(Dollars in thousands)		Dec 31, 2020				Dec 31, 2019				Year over Year
Temporary investments and interest bearing cash		$	1,637,440			$	688,258			138	%
Investment securities, taxable		2,796,581				2,701,821				4	%
Investment securities, tax-exempt		240,054				264,017				(9)	%
Loans held for sale		588,058				299,560				96	%
Loans and leases		22,082,359				20,889,769				6	%
Total interest earning assets		27,344,492				24,843,425				10	%
Goodwill and other intangible assets, net		457,550				1,808,879				(75)	%
Total assets		29,211,733				27,971,844				4	%
Non-interest bearing demand deposits		8,576,436				6,746,607				27	%
Interest bearing deposits		15,527,924				15,057,428				3	%
Total deposits		24,104,360				21,804,035				11	%
Interest bearing liabilities		17,237,888				16,647,085				4	%
Shareholders' equity - common		2,982,458				4,206,380				(29)	%
Tangible common equity (1)		2,524,908				2,397,501				5	%

(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)
(dollars in thousands)	Quarter Ended
	December 31, 2020											September 30, 2020											December 31, 2019
	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	$	696,688			$	5,554			3.19	%		$	669,646			$	5,248			3.13	%		$	415,169			$	4,408			4.25	%
Loans and leases (1)	22,138,283				235,261				4.24	%		22,560,076				224,209				3.96	%		21,379,239				257,701				4.80	%
Taxable securities	2,850,550				12,610				1.77	%		2,797,547				10,878				1.56	%		2,719,089				13,940				2.05	%
Non-taxable securities (2)	245,997				1,893				3.08	%		237,165				1,845				3.11	%		244,895				1,980				3.23	%
Temporary investments and interest-bearing cash	2,066,572				531				0.10	%		1,827,818				474				0.10	%		1,045,975				4,343				1.65	%
Total interest-earning assets	27,998,090				$	255,849			3.64	%		28,092,252				$	242,654			3.45	%		25,804,367				$	282,372			4.36	%
Other assets	1,398,221											1,441,619											3,177,020
Total assets	$	29,396,311										$	29,533,871										$	28,981,387
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,014,292			$	448			0.06	%		$	2,878,529			$	573			0.08	%		$	2,446,137			$	3,485			0.57	%
Money market deposits	7,210,906				1,731				0.10	%		7,179,705				2,284				0.13	%		6,853,118				13,690				0.79	%
Savings deposits	1,882,866				183				0.04	%		1,790,055				179				0.04	%		1,463,744				509				0.14	%
Time deposits	3,056,985				12,205				1.59	%		3,603,527				16,085				1.78	%		4,787,484				26,696				2.21	%
Total interest-bearing deposits	15,165,049				14,567				0.38	%		15,451,816				19,121				0.49	%		15,550,483				44,380				1.13	%
Repurchase agreements and federal funds purchased	388,361				93				0.09	%		378,844				84				0.09	%		303,230				431				0.56	%
Borrowings	934,006				2,765				1.18	%		1,054,153				3,271				1.23	%		1,027,311				5,080				1.96	%
Junior subordinated debentures	335,392				3,147				3.73	%		320,962				3,249				4.03	%		356,746				5,325				5.92	%
Total interest-bearing liabilities	16,822,808				$	20,572			0.49	%		17,205,775				$	25,725			0.59	%		17,237,770				$	55,216			1.27	%
Non-interest-bearing deposits	9,587,081											9,335,350											7,037,320
Other liabilities	370,746											443,043											389,020
Total liabilities	26,780,635											26,984,168											24,664,110
Common equity	2,615,676											2,549,703											4,317,277
Total liabilities and shareholders' equity	$	29,396,311										$	29,533,871										$	28,981,387
NET INTEREST INCOME					$	235,277										$	216,929										$	227,156
NET INTEREST SPREAD									3.15	%										2.85	%										3.09	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									3.35	%										3.08	%										3.51	%

(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 $370,000 for the three months ended December 31, 2020 as compared to $355,000 for September 30, 2020 and $342,000 for December 31, 2019.

 

Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
(dollars in thousands)	Year Ended
	December 31, 2020											December 31, 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	$	588,058			$	20,509			3.49	%		$	299,560			$	14,477			4.83	%
Loans and leases (1)	22,082,359				930,930				4.22	%		20,889,769				1,036,600				4.96	%
Taxable securities	2,796,581				50,354				1.80	%		2,701,821				58,419				2.16	%
Non-taxable securities (2)	240,054				7,500				3.12	%		264,017				8,971				3.40	%
Temporary investments and interest-bearing cash	1,637,440				4,739				0.29	%		688,258				14,180				2.06	%
Total interest-earning assets	27,344,492				$	1,014,032			3.71	%		24,843,425				$	1,132,647			4.56	%
Other assets	1,867,241											3,128,419
Total assets	$	29,211,733										$	27,971,844
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,754,417			$	5,712			0.21	%		$	2,365,845			$	12,040			0.51	%
Money market deposits	7,193,470				19,811				0.28	%		6,740,502				56,633				0.84	%
Savings deposits	1,697,353				801				0.05	%		1,467,263				1,746				0.12	%
Time deposits	3,882,684				73,876				1.90	%		4,483,818				97,522				2.17	%
Total interest-bearing deposits	15,527,924				100,200				0.65	%		15,057,428				167,941				1.12	%
Repurchase agreements and federal funds purchased	370,091				766				0.21	%		319,723				2,092				0.65	%
Borrowings	1,014,240				13,921				1.37	%		896,681				17,564				1.96	%
Junior subordinated debentures	325,633				15,221				4.67	%		373,253				22,845				6.12	%
Total interest-bearing liabilities	17,237,888				$	130,108			0.75	%		16,647,085				$	210,442			1.26	%
Non-interest-bearing deposits	8,576,436											6,746,607
Other liabilities	414,951											371,772
Total liabilities	26,229,275											23,765,464
Common equity	2,982,458											4,206,380
Total liabilities and shareholders' equity	$	29,211,733										$	27,971,844
NET INTEREST INCOME					$	883,924										$	922,205
NET INTEREST SPREAD									2.96	%										3.30	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									3.23	%										3.71	%

(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 $1.4 million for the twelve months ended December 31, 2020 as compared to $1.6 million for the same period in 2019.

 

 

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Seq. Quarter			Year over Year
Residential mortgage banking revenue:
Origination and sale		$	83,388			$	98,703			$	86,781			$	39,347			$	35,438			(16)	%		135	%
Servicing		9,497				8,796				8,533				8,880				8,981				8	%		6	%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time		(4,431)				(4,878)				(5,042)				(5,329)				(5,237)				(9)	%		(15)	%
Changes due to valuation inputs or assumptions		(9,426)				(12,244)				(6,395)				(25,358)				(5,132)				(23)	%		84	%
Total		$	79,028			$	90,377			$	83,877			$	17,540			$	34,050			(13)	%		132	%
Closed loan volume:
Portfolio		$	304,162			$	245,550			$	276,247			$	252,329			$	335,511			24	%		(9)	%
For-sale		1,769,432				1,922,789				1,826,095				1,148,184				1,060,016				(8)	%		67	%
Total		$	2,073,594			$	2,168,339			$	2,102,342			$	1,400,513			$	1,395,527			(4)	%		49	%
Gain on sale margin:
Based on for-sale volume		4.71		%		5.13		%		4.75		%		3.43		%		3.34		%		(0.42)			1.37
Residential mortgage servicing rights:
Balance, beginning of period		$	93,248			$	96,356			$	94,346			$	115,010			$	151,383			(3)	%		(38)	%
Additions for new MSR capitalized		13,516				14,014				13,447				10,023				8,397				(4)	%		61	%
Sale of MSR assets		—				—				—				—				(34,401)				0	%		(100)	%
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time		(4,431)				(4,878)				(5,042)				(5,329)				(5,237)				(9)	%		(15)	%
Changes due to valuation inputs or assumptions		(9,426)				(12,244)				(6,395)				(25,358)				(5,132)				(23)	%		84	%
Balance, end of period		$	92,907			$	93,248			$	96,356			$	94,346			$	115,010			0	%		(19)	%
Residential mortgage loans serviced for others		$	13,026,720			$	12,964,361			$	12,746,125			$	12,533,045			$	12,276,943			0	%		6	%
MSR as % of serviced portfolio		0.71		%		0.72		%		0.76		%		0.75		%		0.94		%		(0.01)			(0.23)

 

	Umpqua Holdings Corporation Residential Mortgage Banking Activity
	(Unaudited)
			Year Ended								% Change
	(Dollars in thousands)		Dec 31, 2020				Dec 31, 2019				Year over Year
	Residential mortgage banking revenue:
	Origination and sale		$	308,219			$	104,394			195	%
	Servicing		35,706				42,199				(15)	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time		(19,680)				(25,408)				(23)	%
	Changes due to valuation inputs or assumptions		(53,423)				(19,375)				176	%
	Total		$	270,822			$	101,810			166	%
	Closed loan volume:
	Portfolio		$	1,078,288			$	1,747,023			(38)	%
	For-sale		6,666,500				3,089,698				116	%
	Total		$	7,744,788			$	4,836,721			60	%
	Gain on sale margin:
	Based on for-sale volume		4.62		%		3.38		%		1.24
	Residential mortgage servicing rights:
	Balance, beginning of period		$	115,010			$	169,025			(32)	%
	Additions for new MSR capitalized		51,000				25,169				103	%
	Sale of MSR assets		—				(34,401)				(100)	%
	Changes in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time		(19,680)				(25,408)				(23)	%
	Changes due to valuation inputs or assumptions		(53,423)				(19,375)				176	%
	Balance, end of period		$	92,907			$	115,010			(19)	%

 

 

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SOURCE Umpqua Holdings Corporation