UMPQ
$20.25
Umpqua Holdings
$.12
.60%
Earnings Details
Quarter December 2021
Wednesday, January 19, 2022 4:15:00 PM
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Summary

Umpqua Holdings Misses

Umpqua Holdings (UMPQ) reported Quarter December 2021 earnings of $0.41 per share on revenue of $323.6 million. The consensus earnings estimate was $0.44 per share on revenue of $306.9 million. The Earnings Whisper number was $0.48 per share. Revenue fell 14.7% compared to the same quarter a year ago.

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
$0.41
Earnings Whisper
$0.48
Consensus Estimate
$0.44
Reported Revenue
$323.6 Mil
Revenue Estimate
$306.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2021 RESULTS

PORTLAND, Ore., Jan. 19, 2022 /PRNewswire/ --

$0.41


$88


12.94%


14.3%

Net earnings per diluted
common share


Net income ($ in millions)


Return on average tangible
common equity ("ROATCE")1


Total risk-based capital ratio
(estimated)

 

CEO Commentary

"Umpqua's fourth quarter results round out an outstanding year for the bank that is particularly commendable given the ongoing challenges faced by our associates, customers, and communities" said Cort O'Haver, President and CEO. "Non-PPP (Paycheck Protection Program) loan growth of $930 million marks the highest quarterly growth in the bank's history, and it highlights the success of multi-year initiatives that are further evidenced through core commercial fee growth and a continued reduction of our total cost of deposits to just six basis points. The quarter's growth demonstrates our ability to keep our teams focused on organically expanding our franchise and creating shareholder value while meticulously planning for our previously announced combination with Columbia Banking System."

–   Cort O'Haver, President and CEO of Umpqua Holdings Corporation

 

FOURTH QUARTER HIGHLIGHTS



Net Interest Income and NIM

•   Net interest income decreased by $1.7 million on a quarter-to-quarter basis due to lower income related to PPP loan forgiveness as net interest income otherwise expanded.

•   Net interest margin (NIM) of 3.15% was down six basis points from the prior period due to lower PPP fees. The impact was partially offset by higher average non-PPP loan balances and lower interest expense.



Non-Interest Income and Expense

•   Non-interest income increased by $9.0 million due to higher net mortgage banking revenue of $9.0 million given a write-up of the mortgage servicing rights (MSR) asset.

•   Non-interest expense increased by $16.0 million due to merger-related expenses of $15.2 million.



Credit Quality

•   Net charge-offs remained low at 0.13% of average loans and leases (annualized).

•   A recapture of the provision for credit losses of $0.7 million was recorded in the period as forecasted economic conditions improved.

•   Non-performing assets to total assets remained at 0.17%, consistent with the prior period.



Capital

•   Estimated total risk-based capital ratio of 14.3% and estimated Tier 1 risk-based capital ratio of 11.6%.

•   Paid a quarterly cash dividend of $0.21 per common share on November 30, 2021 to shareholders of record as of November 19, 2021.



Other Notable Items

•   Completed 15 planned store consolidations during the quarter, bringing total Next Gen 2.0 store consolidations to 34.

•   $3.0 million in exit disposal costs related to store consolidations and back-office lease exits.

 

4Q21 KEY FINANCIAL DATA







PERFORMANCE METRICS

4Q21


3Q21


4Q20

Return on average assets

1.13 %


1.40 %


2.04 %

Return on average tangible common equity

12.94 %


15.88 %


23.07 %

Net interest margin

3.15 %


3.21 %


3.35 %

Efficiency ratio - consolidated

63.10 %


59.44 %


58.82 %

Loan to deposit ratio

84.80  %


81.65 %


88.45 %







INCOME STATEMENT

($ in 000s, excl. per share data)

4Q21


3Q21


4Q20

Net interest income

$233,379


$235,074


$234,907

(Recapture) provision for credit losses

($736)


($18,919)


$29

Non-interest income

$82,738


$73,705


$123,960

Non-interest expense

$199,711


$183,753


$211,312

Earnings per common share - diluted

$0.41


$0.49


$0.68

Dividends paid per share

$0.21


$0.21


$0.21







BALANCE SHEET

4Q21


3Q21


4Q20

Total assets

        $30.6B


        $30.9B


         $29.2B

Loans and leases

        $22.6B


        $22.0B


         $21.8B

Total deposits

        $26.6B


        $26.9B


         $24.6B

Tangible book value per common share1

$12.65


$12.52


$12.21

Book value per common share

$12.69


$12.57


$12.28


 

Balance Sheet
Total consolidated assets were $30.6 billion as of December 31, 2021, compared to $30.9 billion as of September 30, 2021 and $29.2 billion as of December 31, 2020.  Including secured off-balance sheet lines of credit, total available liquidity was $15.3 billion as of December 31, 2021, representing 50% of total assets and 58% of total deposits.

Gross loans and leases were $22.6 billion as of December 31, 2021, an increase of $583.2 million from $22.0 billion as of September 30, 2021. The increase is primarily due to balanced, non-PPP loan growth of $929.5 million that substantially offset a $346.3 million decline in PPP balances as related loan forgiveness continued. Please refer to the additional loan tables in the Q4 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.

Total deposits were $26.6 billion as of December 31, 2021, a decrease of $313.7 million from $26.9 billion as of September 30, 2021. This decrease was primarily attributable to anticipated outflows related to the April 2021 sale of Umpqua Investments, a continued decline in personal certificates of deposit balances, and normal seasonal trends related to customer tax and escrow payments.

Net Interest Income
Net interest income was $233.4 million for the fourth quarter of 2021, down $1.7 million from the prior quarter. The decrease is due to a $5.9 million reduction in PPP-related fee income accreted into interest income, with the effect partially offset by higher non-PPP loan income and higher investment securities income due to higher average balances in the quarter and a reduction in the cost of interest-bearing deposits.

The Company's net interest margin was 3.15% for the fourth quarter of 2021, down 6 basis points from 3.21% for the third quarter of 2021. The decrease is attributable to the aforementioned decline in PPP-related fees. Please refer to the Q4 2021 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.

Credit Quality
The allowance for credit losses was $261.2 million, or 1.16% of loans and leases, as of December 31, 2021, which was down from $269.3 million, or 1.23% of loans and leases, as of September 30, 2021.  The recapture of provision for credit losses was $0.7 million for the fourth quarter of 2021, compared to a recapture of $18.9 million for the third quarter of 2021. The current quarter's modest recapture of provision reflects improvement in economic forecasts used in credit models that was largely offset by allowance requirements for new loan generation.

Net charge-offs as a percentage of average loans and leases increased by two basis points from the prior quarter to 0.13% of average loans and leases for the fourth quarter of 2021 (annualized).  Net charge-off activity within the FinPac portfolio remained below its historical average for the second consecutive quarter. As of December 31, 2021, non-performing assets were 0.17% of total assets, compared to 0.17% as of September 30, 2021 and 0.24% as of December 31, 2020.

Current Expected Credit Loss (CECL)
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, we use credit models that factor in economic forecasts to project life of loan performance.  At the beginning of the COVID-19 pandemic, economic forecasts projected significant, negative COVID-19 related 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 stabilized as well as incorporating loan mix changes, we recorded a recapture of $0.7 million of the allowance for credit losses in the current period.

Non-interest Income
Non-interest income was $82.7 million for the fourth quarter of 2021, up $9.0 million from the prior quarter and driven primarily by the increase in net mortgage banking revenue. As detailed in our segment disclosures, non-interest income for the Core Banking segment includes a fair value loss of $3.4 million for the fourth quarter of 2021, driven by an increase in long-term interest rates and their effect on fair value adjustments related to investment securities, swap derivatives, and loans carried at fair value. This compares to a fair value gain of $4.5 million in the third quarter of 2021, and the $8.0 million decline in fair value change between periods from these specific items was primarily driven by a $6.1 million decline in fair value change for loans carried at fair value, which is captured in other income. Please refer to the Q4 2021 Earnings Presentation for additional details related to other non-interest income.

Revenue from the origination and sale of residential mortgages was $23.6 million for the fourth quarter of 2021, a decrease of $6.7 million from the prior quarter. This decline reflects a sequential quarter decrease of $116.0 million or 11.8% in for-sale mortgage origination volume given anticipated seasonal trends and a decrease of 36 basis points in the home lending gain on sale margin to 2.71% for the fourth quarter of 2021 due to a seasonal decline in the locked pipeline. Interest rate movements favorably impacted valuation of the MSR asset, resulting in a net write-up during the quarter of $10.1 million, which includes a $15.4 million fair value gain related to model inputs. Of the current quarter's mortgage production, 54% related to purchase activity, compared to 61% for the prior quarter and 48% for the same period in the prior year.

Non-interest Expense
Non-interest expense was $199.7 million for the fourth quarter of 2021, an increase of $16.0 million from the prior quarter level. The current quarter includes $15.2 million in merger-related expenses and $3.0 million in exit and disposal costs related to store consolidations and back-office lease exits. Please refer to the Q4 2021 Earnings Presentation for quarterly expense change details.

Capital
As of December 31, 2021, the Company's book value per common share increased to $12.69 from $12.57 in the prior quarter, and its tangible book value per common share2 increased to  $12.65 from $12.52 in the prior quarter. 

The Company's estimated total capital to risk-weighted assets ratio was 14.3% and its estimated Tier 1 capital to risk-weighted assets ratio was 11.6% as of December 31, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of December 31, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

Segment Disclosures
Segment disclosures on pages 19, 20 and 21 of this press release provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.

The Core Banking segment includes all lines of business, except Mortgage Banking, including wholesale, retail, wealth management, as well as the operations, technology, and administrative functions of the Bank and Holding Company.  The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from our serviced loan portfolio, the quarterly changes to the mortgage servicing rights (MSR) asset, and the specific expenses that are related to mortgage banking activities including variable commission expenses.  Revenue and related expenses for residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for our consumer channels and are originated through a variety of channels throughout the Company.

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, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020

Total shareholders' equity


$     2,749,270


$    2,722,379


$     2,766,316


$     2,681,869


$     2,704,577

Subtract:











Goodwill





2,715


2,715

Other intangible assets, net


8,840


9,970


11,100


12,230


13,360

Tangible common shareholders' equity


$     2,740,430


$    2,712,409


$     2,755,216


$     2,666,924


$     2,688,502

Total assets


$   30,640,936


$  30,891,479


$   30,284,965


$   30,036,680


$   29,235,175

Subtract:











Goodwill





2,715


2,715

Other intangible assets, net


8,840


9,970


11,100


12,230


13,360

Tangible assets


$   30,632,096


$  30,881,509


$   30,273,865


$   30,021,735


$   29,219,100

Common shares outstanding at period end


216,626


216,622


220,626


220,491


220,226












Total shareholders' equity to total assets ratio


8.97 %


8.81 %


9.13 %


8.93 %


9.25 %

Tangible common equity ratio


8.95 %


8.78 %


9.10 %


8.88 %


9.20 %

Book value per common share


$            12.69


$           12.57


$            12.54


$            12.16


$            12.28

Tangible book value per common share


$            12.65


$           12.52


$            12.49


$            12.10


$            12.21

 

About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based 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 Corporation is headquartered in Portland, Oregon. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the sixteenth consecutive year. In addition to its retail banking presence, Umpqua Bank also owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses. For more information, visit www.umpquabank.com.

Earnings Conference Call Information
The Company will host its fourth quarter 2021 earnings conference call on Thursday, January 20, 2022, 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 2021 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: 3384189. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 3384189.  The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

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 strategic and growth initiatives. 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; changes in laws or regulations; the ability to complete, or any delays in completing, the proposed transaction between us and Columbia Banking System, Inc.; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the proposed transaction that may impact our ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities; and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction. 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,
2021


Sep 30,
2021


Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Seq.

Quarter


Year
over
Year

Interest income:















Loans and leases


$     221,501


$     224,403


$     223,470


$     221,141


$     240,815


(1)

%


(8)

%

Interest and dividends on investments:















Taxable


16,566


16,102


14,619


13,112


11,951


3

 

%


39

%

Exempt from federal income tax


1,456


1,470


1,487


1,534


1,523


(1)

%


(4)

%

Dividends


102


213


405


598


659


(52)

%


(85)

%

Temporary investments and interest bearing deposits


1,229


1,237


774


624


531


(1)

%


131

%

Total interest income


240,854


243,425


240,755


237,009


255,479


(1)

%


(6)

%

Interest expense:















Deposits


4,357


5,100


7,016


10,678


14,567


(15)

%


(70)

%

Securities sold under agreement to repurchase and federal funds purchased


48


88


68


76


93


(45)

%


(48)

%

Borrowings


51


149


866


1,772


2,765


(66)

%


(98)

%

Junior subordinated debentures


3,019


3,014


3,042


3,052


3,147


0

%


(4)

%

Total interest expense


7,475


8,351


10,992


15,578


20,572


(10)

%


(64)

%

Net interest income


233,379


235,074


229,763


221,431


234,907


(1)

%


(1)

%

(Recapture) provision for credit losses


(736)


(18,919)


(22,996)



29


(96)

%


nm


Non-interest income:















Service charges on deposits


11,188


10,941


10,310


9,647


10,202


2

%


10

%

Card-based fees


9,355


9,111


10,274


7,374


7,754


3

%


21

%

Brokerage revenue


31


31


1,135


3,915


4,093


0

%


(99)

%

Residential mortgage banking revenue, net


43,185


34,150


44,443


65,033


79,028


26

%


(45)

%

Gain on sale of debt securities, net


4




4



nm



nm


(Loss) gain on equity securities, net


(466)


(343)


4


(706)


(173)


36

%


169

%

Gain on loan and lease sales, net


4,816


4,208


5,318


1,373


3,374


14

%


43

%

BOLI income


2,101


2,038


2,092


2,071


2,067


3

%


2


Other income


12,524


13,569


17,499


20,089


17,615


(8)

%


(29)

%

Total non-interest income


82,738


73,705


91,075


108,800


123,960


12

%


(33)

%

Non-interest expense:















Salaries and employee benefits


117,477


117,636


121,573


124,134


132,460


0

%


(11)

%

Occupancy and equipment, net


34,310


33,944


34,657


34,635


41,758


1

%


(18)

%

Intangible amortization


1,130


1,130


1,130


1,130


1,246


0

%


(9)

%

FDIC assessments


2,896


2,136


1,607


2,599


3,014


36

%


(4)

%

Merger related expenses


15,183






nm



nm


Other expenses


28,715


28,907


30,433


25,094


32,834


(1)

%


(13)

%

Total non-interest expense


199,711


183,753


189,400


187,592


211,312


9

%


(5)

%

Income before provision for income taxes


117,142


143,945


154,434


142,639


147,526


(19)

%


(21)

%

Provision (benefit) for income taxes


28,788


35,879


38,291


34,902


(3,204)


(20)

%


nm


Net income


$      88,354


$     108,066


$     116,143


$     107,737


$     150,730


(18)

%


(41)

%
















Weighted average basic shares outstanding


216,624


218,416


220,593


220,367


220,225


(1)

%


(2)

%

Weighted average diluted shares outstanding


217,356


218,978


221,022


220,891


220,663


(1)

%


(1)

%

Earnings per common share – basic


$          0.41


$          0.49


$          0.53


$          0.49


$          0.68


(16)

%


(40)

%

Earnings per common share – diluted


$          0.41


$          0.49


$          0.53


$          0.49


$          0.68


(16)

%


(40)

%
















nm = not meaningful















 


Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)








Year Ended


% Change

(In thousands, except per share data)


Dec 31, 2021


Dec 31, 2020


Year over
Year

Interest income:







Loans and leases


$            890,515


$            951,439


(6)

%

Interest and dividends on investments:







Taxable


60,399


47,739


27

%

Exempt from federal income tax


5,947


6,095


(2)

%

Dividends


1,318


2,615


(50)

%

Temporary investments and interest bearing deposits


3,864


4,739


(18)

%

Total interest income


962,043


1,012,627


(5)

%

Interest expense:







Deposits


27,151


100,200


(73)

%

Securities sold under agreement to repurchase and federal funds purchased


280


766


(63)

%

Borrowings


2,838


13,921


(80)

%

Junior subordinated debentures


12,127


15,221


(20)

%

Total interest expense


42,396


130,108


(67)

%

Net interest income


919,647


882,519


4

%

(Recapture) provision for credit losses


(42,651)


204,861


(121)

%

Non-interest income:







Service charges on deposits


42,086


40,838


3

%

Card-based fees


36,114


28,190


28

%

Brokerage revenue


5,112


15,599


(67)

%

Residential mortgage banking revenue, net


186,811


270,822


(31)

%

Gain on sale of debt securities, net


8


190


(96)

%

(Loss) gain on equity securities, net


(1,511)


769


(296)

%

Gain on loan and lease sales, net


15,715


6,707


134

%

BOLI income


8,302


8,399


(1)

%

Other income


63,681


40,495


57

%

Total non-interest income


356,318


412,009


(14)

%

Non-interest expense:







Salaries and employee benefits


480,820


479,247


0

%

Occupancy and equipment, net


137,546


151,650


(9)

%

Intangible amortization


4,520


4,986


(9)

%

FDIC assessments


9,238


12,516


(26)

%

Merger related expenses


15,183



nm


Goodwill impairment



1,784,936


nm


Other expenses


113,149


112,752


0

%

Total non-interest expense


760,456


2,546,087


(70)

%

Income (loss) before provision for income taxes


558,160


(1,456,420)


(138)

%

Provision for income taxes


137,860


67,000


106

%

Net income (loss)


$            420,300


$       (1,523,420)


(128)

%








Weighted average basic shares outstanding


219,032


220,218


(1)

%

Weighted average diluted shares outstanding


219,581


220,218


0

%

Earnings per common share – basic


$                 1.92


$                (6.92)


(128)

%

Earnings per common share – diluted


$                 1.91


$                (6.92)


(128)

%








nm = not meaningful







 

Umpqua Holdings Corporation
Consolidated Balance Sheets
(Unaudited)
























% Change

(In thousands, except per share data)

Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Seq. 
Quarter


Year
over
Year

Assets:














Cash and due from banks

$     222,015


$     395,555


$     397,526


$     379,361


$    370,219


(44)

%


(40)

%

Interest bearing cash and temporary investments

2,539,606


3,349,034


2,688,285


2,861,820


2,202,962


(24)

%


15

%

Investment securities:














Equity and other, at fair value

81,214


81,575


82,099


82,771


83,077


0

%


(2)

%

Available for sale, at fair value

3,870,435


3,723,171


3,473,950


3,167,825


2,932,558


4

%


32

%

Held to maturity, at amortized cost

2,744


2,795


2,876


2,954


3,034


(2)

%


(10)

%

Loans held for sale

353,105


352,466


429,052


376,481


766,225


0

%


(54)

%

Loans and leases

22,553,180


21,969,940


22,143,739


22,160,860


21,779,367


3

%


4

%

Allowance for credit losses on loans and leases

(248,412)


(257,560)


(279,887)


(311,283)


(328,401)


(4)

%


(24)

%

Net loans and leases

22,304,768


21,712,380


21,863,852


21,849,577


21,450,966


3

%


4

%

Restricted equity securities

10,916


10,946


15,247


22,057


41,666


0

%


(74)

%

Premises and equipment, net

171,125


172,624


172,546


176,571


178,050


(1)

%


(4)

%

Operating lease right-of-use assets

82,366


88,379


95,030


100,643


104,937


(7)

%


(22)

%

Goodwill




2,715


2,715


nm



nm


Other intangible assets, net

8,840


9,970


11,100


12,230


13,360


(11)

%


(34)

%

Residential mortgage servicing rights, at fair value

123,615


105,834


102,699


100,413


92,907


17

%


33

%

Bank owned life insurance

327,745


325,646


324,998


322,867


323,470


1

%


1

%

Deferred tax asset, net


8,402



10,905



nm



nm


Other assets

542,442


552,702


625,705


567,490


669,029


(2)

%


(19)

%

Total assets

$  30,640,936


$  30,891,479


$  30,284,965


$  30,036,680


$  29,235,175


(1)

%


5

%

Liabilities:














Deposits

$  26,594,685


$  26,908,397


$  26,153,553


$  25,886,833


$  24,622,201


(1)

%


8

%

Securities sold under agreements to repurchase

492,247


467,760


480,302


420,402


375,384


5

%


31

%

Borrowings

6,329


6,367


111,405


281,444


771,482


(1)

%


(99)

%

Junior subordinated debentures, at fair value

293,081


299,508


287,723


281,580


255,217


(2)

%


15

%

Junior subordinated debentures, at amortized cost

88,041


88,098


88,155


88,212


88,268


0

%


0

%

Operating lease liabilities

95,427


100,557


106,195


109,014


113,593


(5)

%


(16)

%

Deferred tax liability, net

4,353



2,497



5,441


nm



(20)

%

Other liabilities

317,503


298,413


288,819


287,326


299,012


6

%


6

%

Total liabilities

27,891,666


28,169,100


27,518,649


27,354,811


26,530,598


(1)

%


5

%

Shareholders' equity:














Common stock

3,444,849


3,442,085


3,517,641


3,515,248


3,514,599


0

%


(2)

%

Accumulated deficit

(697,338)


(739,915)


(801,954)


(871,511)


(932,767)


(6)

%


(25)

%

Accumulated other comprehensive income

1,759


20,209


50,629


38,132


122,745


(91)

%


(99)

%

Total shareholders' equity

2,749,270


2,722,379


2,766,316


2,681,869


2,704,577


1

%


2

%

Total liabilities and shareholders' equity

$  30,640,936


$  30,891,479


$  30,284,965


$  30,036,680


$  29,235,175


(1)

%


5

%















Common shares outstanding at period end

216,626


216,622


220,626


220,491


220,226


0

%


(2)

%

Book value per common share

$         12.69


$         12.57


$         12.54


$         12.16


$        12.28


1

%


3

%

Tangible book value per common share

$         12.65


$         12.52


$         12.49


$         12.10


$        12.21


1

%


4

%

Tangible equity - common

$  2,740,430


$  2,712,409


$  2,755,216


$  2,666,924


$ 2,688,502


1

%


2

%

Tangible common equity to tangible assets

8.95 %


8.78 %


9.10 %


8.88 %


9.20 %


0.17


(0.25)

 


Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)


(Dollars in thousands)


Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


% Change



Amount


Amount


Amount


Amount


Amount


Seq. Quarter


Year
over
Year

Loans and leases:















Commercial real estate:















Non-owner occupied term, net


$ 3,786,887


$ 3,561,764


$ 3,580,386


$ 3,455,773


$ 3,505,802


6

%


8

%

Owner occupied term, net


2,332,422


2,330,338


2,398,326


2,358,169


2,333,945


0

%


0

%

Multifamily, net


4,051,202


3,813,024


3,553,704


3,421,320


3,349,196


6

%


21

%

Construction & development, net


890,338


882,778


857,866


876,297


828,478


1

%


7

%

Residential development, net


206,990


177,148


193,904


190,841


192,761


17

%


7

%

Commercial:















Term, net (1)


3,008,473


3,159,466


3,748,269


4,350,763


4,024,467


(5)

%


(25)

%

Lines of credit & other, net


910,733


930,350


908,518


825,162


862,760


(2)

%


6

%

Leases & equipment finance, net


1,467,676


1,457,248


1,437,372


1,420,977


1,456,630


1

%


1

%

Residential:















Mortgage, net


4,517,266


4,330,860


4,145,432


3,958,644


3,871,906


4

%


17

%

Home equity loans & lines, net


1,197,170


1,133,823


1,118,278


1,097,168


1,136,064


6

%


5

%

   Consumer & other, net


184,023


193,141


201,684


205,746


217,358


(5)

%


(15)

%

Total loans and leases, net of deferred fees and costs


$  22,553,180


$  21,969,940


$  22,143,739


$  22,160,860


$  21,779,367


3

%


4

%
















(1)    The Bank participates in the Payroll Protection Program 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 the following net PPP loan balances:.


Net PPP loan balance


$      380,440


$    726,737


$ 1,380,212


$ 2,047,793


$ 1,750,211


(48)

%


(78)

%
















Loan and leases mix:















Commercial real estate:















   Non-owner occupied term, net


17

%


16

%


16

%


15

%


16

%





   Owner occupied term, net


10

%


11

%


11

%


11

%


11

%





   Multifamily, net


18

%


17

%


16

%


15

%


15

%





Construction & development, net


4

%


4

%


4

%


4

%


4

%





Residential development, net


1

%


1

%


1

%


1

%


1

%





Commercial:















Term, net


13

%


14

%


17

%


20

%


18

%





Lines of credit & other, net


4

%


4

%


4

%


4

%


4

%





Leases & equipment finance, net


7

%


7

%


6

%


6

%


7

%





Residential:















Mortgage, net


20

%


20

%


19

%


18

%


18

%





Home equity loans & lines, net


5

%


5

%


5

%


5

%


5

%





   Consumer & other, net


1

%


1

%


1

%


1

%


1

%





    Total


100

%


100

%


100

%


100

%


100

%





 


Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)
















(Dollars in thousands)


Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


% Change



Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Deposits:















Demand, non-interest bearing


$  11,023,724


$  11,121,127


$  10,718,921


$  10,500,482


$ 9,632,773


(1)

%


14

%

Demand, interest bearing


3,774,937


3,758,019


3,466,251


3,244,624


3,051,487


0

%


24

%

Money market


7,611,718


7,780,442


7,559,621


7,554,798


7,173,920


(2)

%


6

%

Savings


2,375,723


2,325,929


2,221,524


2,109,211


1,912,752


2

%


24

%

Time


1,808,583


1,922,880


2,187,236


2,477,718


2,851,269


(6)

%


(37)

%

Total


$  26,594,685


$  26,908,397


$  26,153,553


$  25,886,833


$  24,622,201


(1)

%


8

%

















Total core deposits (1)


$  25,964,358


$  26,029,814


$  25,122,851


$  24,740,621


$  23,298,561


0

%


11

%
















Deposit mix:















Demand, non-interest bearing


41

%


41

%


41

%


41

%


39

%





Demand, interest bearing


14

%


14

%


13

%


12

%


12

%





Money market


29

%


29

%


29

%


29

%


29

%





Savings


9

%


9

%


9

%


8

%


8

%





Time


7

%


7

%


8

%


10

%


12

%





Total


100

%


100

%


100

%


100

%


100

%




















Number of open accounts:















Demand, non-interest bearing


428,181


425,337


424,626


422,792


420,050





Demand, interest bearing


66,010


70,749


71,411


72,156


72,811





Money market


57,222


57,794


58,289


58,409


58,609





Savings


160,449


161,698


161,902


161,432


160,192





Time


35,665


37,172


39,560


43,637


48,292





Total


747,527


752,750


755,788


758,426


759,954




















Average balance per account:















Demand, non-interest bearing


$          25.7


$          26.1


$          25.2


$          24.8


$          22.9





Demand, interest bearing


57.2


53.1


48.5


45.0


41.9





Money market


133.0


134.6


129.7


129.3


122.4





Savings


14.8


14.4


13.7


13.1


11.9





Time


50.7


51.7


55.3


56.8


59.0





Total


$          35.6


$          35.7


$          34.6


$          34.1


$          32.4






(1) Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.

 


Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)



Quarter Ended


% Change

(Dollars in thousands)

Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Seq.
Quarter


Year over
Year

Non-performing assets:














Loans and leases on non-accrual status

$    18,865


$    24,152


$    20,673


$    29,216


$    31,076


(22)

%


(39)

%

Loans and leases past due 90+ days and accruing

32,336


27,490


29,144


25,612


36,361


18

%


(11)

%

Total non-performing loans and leases

51,201


51,642


49,817


54,828


67,437


(1)

%


(24)

%

Other real estate owned

1,868


1,868


181


1,405


1,810


0

%


3

%

Total non-performing assets

$    53,069


$    53,510


$    49,998


$    56,233


$    69,247


(1)

%


(23)

%















Performing restructured loans and leases

$      6,694


$      9,849


$    13,072


$      9,921


$    14,991


(32)

%


(55)

%

Loans and leases past due 31-89 days

$    31,680


$    41,326


$    30,646


$    51,120


$    72,047


(23)

%


(56)

%

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

0.14

%


0.19

%


0.14

%


0.23

%


0.33

%





Non-performing loans and leases to total loans and leases

0.23

%


0.24

%


0.22

%


0.25

%


0.31

%





Non-performing assets to total assets

0.17

%


0.17

%


0.17

%


0.19

%


0.24

%





 


Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)




Quarter Ended


% Change

(Dollars in thousands)


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Seq.
Quarter


Year over
Year

Allowance for credit losses on loans and leases (ACLLL)















Balance, beginning of period


$  257,560


$  279,887


$  311,283


$  328,401


$  345,049


(8)

%


(25)

%

(Recapture) provision for credit losses on loans and leases


(1,751)


(16,132)


(17,775)


526


3,104


(89)

%


(156)

%

Charge-offs


(10,930)


(10,373)


(17,079)


(20,915)


(23,942)


5

%


(54)

%

Recoveries


3,533


4,178


3,458


3,271


4,190


(15)

%


(16)

%

Net charge-offs


(7,397)


(6,195)


(13,621)


(17,644)


(19,752)


19

%


(63)

%

Balance, end of period


$  248,412


$  257,560


$  279,887


$  311,283


$  328,401


(4)

%


(24)

%

Reserve for unfunded commitments















Balance, beginning of period


$    11,752


$    14,539


$    19,760


$    20,286


$    24,306


(19)

%


(52)

%

Provision (recapture) for credit losses on unfunded commitments


1,015


(2,787)


(5,221)


(526)


(4,020)


(136)

%


(125)

%

Balance, end of period


12,767


11,752


14,539


19,760


20,286


9

%


(37)

%

Total Allowance for credit losses (ACL)


$  261,179


$  269,312


$  294,426


$  331,043


$  348,687


(3)

%


(25)

%
















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


0.13

%


0.11

%


0.25

%


0.33

%


0.35

%





Recoveries to gross charge-offs


32.32

%


40.28

%


20.25

%


15.64

%


17.50

%





ACLLL to loans and leases


1.10

%


1.17

%


1.26

%


1.40

%


1.51

%





ACL to loans and leases


1.16

%


1.23

%


1.33

%


1.49

%


1.60

%





 


Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)




Year Ended


% Change

(Dollars in thousands)


Dec 31, 2021


Dec 31, 2020


Year over Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$        328,401


$        157,629


108

%

Impact of adoption of CECL



49,999


nm


Adjusted balance, beginning of period


328,401


207,628


58

%

(Recapture) provision for credit losses on loans and leases


(35,132)


191,875


(118)

%

Charge-offs


(59,297)


(84,496)


(30)

%

Recoveries


14,440


13,394


8

%

Net charge-offs


(44,857)


(71,102)


(37)

%

Balance, end of period


$        248,412


$        328,401


(24)

%

Reserve for unfunded commitments







Balance, beginning of period


$          20,286


$            5,106


297

%

Impact of adoption of CECL



3,238


nm


Adjusted balance, beginning of period


20,286


8,344


143

%

(Recapture) provision for credit losses on unfunded commitments


(7,519)


11,942


(163)

%

Balance, end of period


12,767


20,286


(37)

%

Total Allowance for credit losses (ACL)


$        261,179


$        348,687


(25)

%








Net charge-offs to average loans and leases


0.20

%


0.32

%



Recoveries to gross charge-offs


24.35

%


15.85

%



nm = not meaningful







 


Umpqua Holdings Corporation

Selected Ratios

(Unaudited)


















Quarter Ended


% Change



Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Seq. Quarter


Year
over
Year

Average Rates:















Yield on loans held for sale


3.18%


3.15%


3.18%


2.75%


3.19%


0.03


(0.01)

Yield on loans and leases


3.94%


4.02%


3.99%


4.02%


4.24%


(0.08)


(0.30)

Yield on taxable investments


1.81%


1.90%


1.87%


1.86%


1.77%


(0.09)


0.04

Yield on tax-exempt investments (1)


2.96%


3.01%


3.02%


3.03%


3.08%


(0.05)


(0.12)

Yield on interest bearing cash and temporary investments


0.15%


0.15%


0.11%


0.10%


0.10%



0.05

Total yield on earning assets (1)


3.25%


3.32%


3.35%


3.41%


3.64%


(0.07)


(0.39)
















Cost of interest bearing deposits


0.11%


0.13%


0.18%


0.29%


0.38%


(0.02)


(0.27)

Cost of securities sold under agreements















to repurchase and fed funds purchased


0.04%


0.07%


0.06%


0.08%


0.09%


(0.03)


(0.05)

Cost of borrowings


3.19%


1.88%


1.62%


1.33%


1.18%


1.31


2.01

Cost of junior subordinated debentures


3.09%


3.18%


3.30%


3.60%


3.73%


(0.09)


(0.64)

Total cost of interest bearing liabilities


0.18%


0.20%


0.27%


0.38%


0.49%


(0.02)


(0.31)
















Net interest spread (1)


3.07%


3.12%


3.08%


3.03%


3.15%


(0.05)


(0.08)

Net interest margin (1)


3.15%


3.21%


3.20%


3.18%


3.35%


(0.06)


(0.20)
















Performance Ratios:















Return on average assets


1.13%


1.40%


1.54%


1.49 %


2.04%


(0.27)


(0.91)

Return on average tangible assets


1.14%


1.40%


1.55%


1.49 %


2.04%


(0.26)


(0.90)

Return on average common equity


12.90%


15.82%


17.25%


16.33%


22.92%


(2.92)


(10.02)

Return on average tangible common equity


12.94%


15.88%


17.33%


16.43%


23.07%


(2.94)


(10.13)

Efficiency ratio – Consolidated


63.10%


59.44%


58.96%


56.74%


58.82%


3.66


4.28

Efficiency ratio – Bank


62.35%


58.54%


58.31%


55.51%


57.77%


3.81


4.58


(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, 2021


Dec 31, 2020


Year over Year

Average Rates:







Yield on loans held for sale


3.03%


3.49%


(0.46)

Yield on loans and leases


3.99%


4.22%


(0.23)

Yield on taxable investments


1.86%


1.80%


0.06

Yield on tax-exempt investments (1)


3.00%


3.12%


(0.12)

Yield on interest bearing cash and temporary investments


0.13%


0.29%


(0.16)

Total yield on earning assets (1)


3.33%


3.71%


(0.38)








Cost of interest bearing deposits


0.18%


0.65%


(0.47)

Cost of securities sold under agreements







to repurchase and fed funds purchased


0.06%


0.21%


(0.15)

Cost of borrowings


1.45%


1.37%


0.08

Cost of junior subordinated debentures


3.28%


4.67%


(1.39)

Total cost of interest bearing liabilities


0.26%


0.75%


(0.49)








Net interest spread (1)


3.07%


2.96%


0.11

Net interest margin (1)


3.18%


3.23%


(0.05)








Performance Ratios:







Return on average assets


1.39 %


(5.22%)


6.61

Return on average tangible assets


1.39 %


(5.30%)


6.69

Return on average common equity


15.56%


(51.08%)


66.64

Return on average tangible common equity


15.63%


(60.34%)


75.97

Efficiency ratio – Consolidated


59.53%


196.47%


(136.94)

Efficiency ratio – Bank


58.65%


195.33%


(136.68)


(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,
2021


Sep 30,
2021


Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Seq.
Quarter


Year
over
Year

Temporary investments and interest bearing cash

$   3,190,380


$   3,224,846


$   2,835,474


$   2,483,451


$   2,066,572


(1)

%


54

%

Investment securities, taxable

3,681,650


3,436,895


3,210,771


2,945,896


2,850,550


7

%


29

%

Investment securities, tax-exempt

247,183


245,904


247,282


252,741


245,997


1

%


0

%

Loans held for sale

366,043


465,805


468,960


703,557


696,688


(21)

%


(47)

%

Loans and leases

22,098,818


21,864,387


22,040,794


21,692,639


22,138,283


1

%


0

%

Total interest earning assets

29,584,074


29,237,837


28,803,281


28,078,284


27,998,090


1

%


6

%

Goodwill and other intangible assets, net

9,491


10,609


12,615


15,598


16,775


(11)

%


(43)

%

Total assets

30,886,378


30,614,374


30,156,017


29,392,490


29,396,311


1

%


5

%















Non-interest bearing demand deposits

11,219,766


10,960,686


10,582,197


9,897,749


9,587,081


2

%


17

%

Interest bearing deposits

15,690,870


15,679,755


15,474,743


15,166,198


15,165,049


0

%


3

%

Total deposits

26,910,636


26,640,441


26,056,940


25,063,947


24,752,130


1

%


9

%

Interest bearing liabilities

16,569,585


16,583,803


16,500,106


16,444,694


16,822,808


0

%


(2)

%
















Shareholders' equity - common

2,717,753


2,709,641


2,700,010


2,674,871


2,615,676


0

%


4

%

Tangible common equity (1)

2,708,262


2,699,032


2,687,395


2,659,273


2,598,901


0

%


4

%

 

Umpqua Holdings Corporation

Average Balances

(Unaudited)



Year Ended

% Change

(Dollars in thousands)


Dec 31, 2021


Dec 31, 2020


Year over Year

Temporary investments and interest bearing cash


$         2,936,273


$         1,637,440


79

%

Investment securities, taxable


3,321,142


2,796,581


19

%

Investment securities, tax-exempt


248,256


240,054


3

%

Loans held for sale


500,070


588,058


(15)

%

Loans and leases


21,925,108


22,082,359


(1)

%

Total interest earning assets


28,930,849


27,344,492


6

%

Goodwill and other intangible assets, net


12,057


457,550


(97)

%

Total assets


30,267,372


29,211,733


4

%








Non-interest bearing demand deposits


10,669,531


8,576,436


24

%

Interest bearing deposits


15,504,814


15,527,924


0

%

Total deposits


26,174,345


24,104,360


9

%

Interest bearing liabilities


16,525,052


17,237,888


(4)

%








Shareholders' equity - common


2,700,711


2,982,458


(9)

%

Tangible common equity (1)


2,688,654


2,524,908


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


December 31, 2021


September 30, 2021


December 31, 2020

(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

$     366,043


$    2,907


3.18%


$     465,805


$    3,672


3.15%


$     696,688


$    5,554


3.19%

Loans and leases (1)

22,098,818


218,594


3.94%


21,864,387


220,731


4.02%


22,138,283


235,261


4.24%

Taxable securities

3,681,650


16,668


1.81%


3,436,895


16,315


1.90%


2,850,550


12,610


1.77%

Non-taxable securities (2)

247,183


1,831


2.96%


245,904


1,848


3.01%


245,997


1,893


3.08%

Temporary investments and interest-bearing cash

3,190,380


1,229


0.15%


3,224,846


1,237


0.15%


2,066,572


531


0.10%

Total interest-earning assets

29,584,074


$  241,229


3.25%


29,237,837


$  243,803


3.32%


27,998,090


$  255,849


3.64%

Other assets

1,302,304






1,376,537






1,398,221





Total assets

$  30,886,378






$  30,614,374






$  29,396,311





INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$  3,765,212


$       524


0.06%


$  3,564,040


$       468


0.05%


$  3,014,292


$       448


0.06%

Money market deposits

7,717,844


1,448


0.07%


7,800,144


1,492


0.08%


7,210,906


1,731


0.10%

Savings deposits

2,342,865


206


0.03%


2,284,077


206


0.04%


1,882,866


183


0.04%

Time deposits

1,864,949


2,179


0.46%


2,031,494


2,934


0.57%


3,056,985


12,205


1.59%

Total interest-bearing deposits

15,690,870


4,357


0.11%


15,679,755


5,100


0.13%


15,165,049


14,567


0.38%

Repurchase agreements and federal funds purchased

484,891


48


0.04%


496,822


88


0.07%


388,361


93


0.09%

Borrowings

6,353


51


3.19%


31,500


149


1.88%


934,006


2,765


1.18%

Junior subordinated debentures

387,471


3,019


3.09%


375,726


3,014


3.18%


335,392


3,147


3.73%

Total interest-bearing liabilities

16,569,585


$    7,475


0.18%


16,583,803


$    8,351


0.20%


16,822,808


$  20,572


0.49%

Non-interest-bearing deposits

11,219,766






10,960,686






9,587,081





Other liabilities

379,274






360,244






370,746





Total liabilities

28,168,625






27,904,733






26,780,635





Common equity

2,717,753






2,709,641






2,615,676





Total liabilities and shareholders' equity

$  30,886,378






$  30,614,374






$  29,396,311





NET INTEREST INCOME



$  233,754






$  235,452






$  235,277



NET INTEREST SPREAD





3.07%






3.12%






3.15%

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





3.15%






3.21%






3.35%


(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 $375,000 for the three months ended December 31, 2021 as compared to $377,000 for September 30, 2021 and $370,000 for December 31, 2020

 


Umpqua Holdings Corporation

Average Rates and Balances

(Unaudited)

(dollars in thousands)

Year Ended


December 31, 2021


December 31, 2020


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

$        500,070


$      15,149


3.03%


$        588,058


$      20,509


3.49%

Loans and leases (1)

21,925,108


875,366


3.99%


22,082,359


930,930


4.22%

Taxable securities

3,321,142


61,717


1.86%


2,796,581


50,354


1.80%

Non-taxable securities (2)

248,256


7,458


3.00%


240,054


7,500


3.12%

Temporary investments and interest-bearing cash

2,936,273


3,864


0.13%


1,637,440


4,739


0.29%

Total interest-earning assets

28,930,849


$    963,554


3.33%


27,344,492


$ 1,014,032


3.71%

Other assets

1,336,523






1,867,241





Total assets

$   30,267,372






$   29,211,733





INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$     3,462,035


$        1,865


0.05%


$     2,754,417


$        5,712


0.21%

Money market deposits

7,624,707


5,964


0.08%


7,193,470


19,811


0.28%

Savings deposits

2,200,608


729


0.03%


1,697,353


801


0.05%

Time deposits

2,217,464


18,593


0.84%


3,882,684


73,876


1.90%

Total interest-bearing deposits

15,504,814


27,151


0.18%


15,527,924


100,200


0.65%

Repurchase agreements and federal funds purchased

454,994


280


0.06%


370,091


766


0.21%

Borrowings

195,985


2,838


1.45%


1,014,240


13,921


1.37%

Junior subordinated debentures

369,259


12,127


3.28%


325,633


15,221


4.67%

Total interest-bearing liabilities

16,525,052


$      42,396


0.26%


17,237,888


$    130,108


0.75%

Non-interest-bearing deposits

10,669,531






8,576,436





Other liabilities

372,078






414,951





Total liabilities

27,566,661






26,229,275





Common equity

2,700,711






2,982,458





Total liabilities and shareholders' equity

$   30,267,372






$   29,211,733





NET INTEREST INCOME



$    921,158






$    883,924



NET INTEREST SPREAD





3.07%






2.96%

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





3.18%






3.23%


(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 $1.5 million for the twelve months ended December 31, 2021 as compared to $1.4 million for the same period in 2020. 

 


Umpqua Holdings Corporation

Segments

(Unaudited)

Core Banking

Quarter Ended


% Change

(in thousands)

Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Seq.
Quarter


Year over
Year

Net interest income

$     231,250


$     232,348


$     226,915


$     217,574


$     230,430


0

%


0

%

(Recapture) provision for credit losses

(736)


(18,919)


(22,996)



29


(96)

%


nm


Non-interest income















Gain on sale of debt securities, net

4




4



nm



nm



(Loss) gain on equity securities, net

(466)


(343)


4


(706)


(173)


36

%


169

%


(Loss) gain on swap derivatives, net

(303)


1,429


(4,481)


11,750


3,955


(121)

%


(108)

%


Change in fair value of certain loans held for investment

(2,672)


3,432


2,782


(510)



(178)

%


nm



Non-interest income (excluding above items)

42,812


34,849


48,151


32,913


40,921


23

%


5

%


Total non-interest income

39,375


39,367


46,456


43,451


44,703


0

%


(12)

%

Non-interest expense















Merger related expenses

15,183






nm



nm



Exit and disposal costs

3,022


3,813


4,728


1,200


725


(21)

%


317

%


Non-interest expense (excluding above items)

150,587


146,931


146,877


145,161


171,634


2

%


(12)

%


Allocated expenses, net (1)

4,314


3,680


970


(790)


(3,565)


17

%


(221)

%


Total non-interest expense

173,106


154,424


152,575


145,571


168,794


12

%


3

%

Income before income taxes

98,255


136,210


143,792


115,454


106,310


(28)

%


(8)

%

Provision (benefit) for income taxes

24,067


33,945


35,630


28,106


(13,508)


(29)

%


(278)

%

Net income

$       74,188


$     102,265


$     108,162


$       87,348


$     119,818


(27)

%


(38)

%
















Effective Tax Rate

24%


25%


25%


24%


(13%)





Efficiency Ratio

64%


57%


56%


56%


61%




















Total assets

$  30,155,058


$  30,419,108


$  29,720,182


$  29,529,769


$  28,438,813


(1)

%


6

%

Loans held for sale

$                —


$                —


$                —


$                —


$         78,146


0

%


(100)

%

Total loans and leases

$  22,553,180


$  21,969,940


$  22,143,739


$  22,160,860


$  21,779,367


3

%


4

%

Total deposits

$  26,370,568


$  26,510,938


$  25,820,776


$  25,425,339


$  24,200,012


(1)

%


9

%















Key Rates, end of period:














10 year CMT

1.52%


1.52%


1.45%


1.74%


0.93%





FHLMC 30 year fixed

3.11%


3.01%


2.98%


3.18%


2.67%





nm = not meaningful















(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.


Umpqua Holdings Corporation

Segments - Continued

(Unaudited)

Mortgage Banking

Quarter Ended


% Change

(in thousands)

Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Seq. Quarter


Year over Year

Net interest income

$         2,129


$         2,726


$         2,848


$         3,857


$         4,477


(22)

%


(52)

%

Provision for credit losses






nm



nm


Non-interest income















Residential mortgage banking revenue:















Origination and sale

23,624


30,293


41,367


62,505


83,388


(22)

%


(72)

%


Servicing

9,457


9,172


9,120


9,087


9,497


3

%


0

%


Change in fair value of MSR asset:















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

(5,311)


(4,681)


(4,366)


(4,545)


(4,431)


13

%


20

%


Changes due to valuation inputs or assumptions

15,415


(634)


(1,678)


(2,014)


(9,426)


nm



(264)

%


Non-interest income (excluding above items)

178


188


176


316


229


(5)

%


(22)

%


Total non-interest income

43,363


34,338


44,619


65,349


79,257


26

%


(45)

%

Non-interest expense















Non-interest expense

30,919


33,009


37,795


41,231


38,953


(6)

%


(21)

%


Allocated expenses, net (1)

(4,314)


(3,680)


(970)


790


3,565


17

%


(221)

%


Total non-interest expense

26,605


29,329


36,825


42,021


42,518


(9)

%


(37)

%

Income before income taxes

18,887


7,735


10,642


27,185


41,216


144

%


(54)

%

Provision for income taxes

4,721


1,934


2,661


6,796


10,304


144

%


(54)

%

Net income

$       14,166


$         5,801


$         7,981


$       20,389


$       30,912


144

%


(54)

%
















Effective Tax Rate

25%


25%


25%


25%


25%





Efficiency Ratio

58%


79%


78%


61%


51%



















Total assets

$     485,878


$     472,371


$     564,783


$     506,911


$     796,362


3

%


(39)

%

Loans held for sale

$     353,105


$     352,466


$     429,052


$     376,481


$     688,079


0

%


(49)

%

Total deposits

$     224,117


$     397,459


$     332,777


$     461,494


$     422,189


(44)

%


(47)

%
















LHFS Production Statistics:














Closed loan volume for-sale

$     871,268


$     987,281


$  1,253,023


$  1,635,532


$  1,769,432


(12)

%


(51)

%

Gain on sale margin

2.71 %


3.07 %


3.30 %


3.82 %


4.71 %





Direct LHFS expense

$       18,150


$       19,958


$       25,459


$       31,151


$       33,210


(9)

%


(45)

%

Direct LHFS expenses as % of volume

2.08 %


2.02 %


2.03 %


1.90 %


1.88 %




















MSR Statistics:














Residential mortgage loans serviced for others

$  12,755,671


$  12,853,291


$  12,897,032


$  13,030,467


$  13,026,720


(1)

%


(2)

%

MSR, net

$       123,615


$       105,834


$       102,699


$       100,413


$         92,907


17

%


33

%

MSR as % of serviced portfolio

0.97 %


0.82 %


0.80 %


0.77 %


0.71 %




















Key Rates, end of period:














10 year CMT

1.52 %


1.52 %


1.45 %


1.74 %


0.93 %





FHLMC 30 year fixed

3.11 %


3.01 %


2.98 %


3.18 %


2.67 %





nm = not meaningful















(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.

 

Umpqua Holdings Corporation

Segments

(Unaudited)

(in thousands)

Core Banking


Mortgage Banking



Year Ended


% Change


Year Ended


% Change



Dec 31, 2021


Dec 31, 2020


Year over
Year


Dec 31, 2021


Dec 31, 2020


Year over
Year

Net interest income

$      908,087


$      866,996


5%


$        11,560


$        15,523


(26)%

(Recapture) provision for credit losses

(42,651)


204,861


(121)%




nm

Non-interest income













Residential mortgage banking revenue:













Origination and sale



nm


157,789


308,219


(49)%


Servicing



nm


36,836


35,706


3%


Change in fair value of MSR asset:













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



nm


(18,903)


(19,680)


(4)%


Changes due to valuation inputs or assumptions



nm


11,089


(53,423)


(121)%


Gain on sale of debt securities, net

8


190


(96)%




nm


(Loss) gain on equity securities, net

(1,511)


769


(296)%




nm


Gain (loss) on swap derivatives, net

8,395


(9,409)


(189)%




nm


Change in fair value of certain loans held for investment

3,032



nm




nm


Non-interest income (excluding above items)

158,725


148,884


7%


858


753


14%


Total non-interest income

168,649


140,434


20%


187,669


271,575


(31)%

Non-interest expense













Goodwill Impairment


1,784,936


(100)%




nm


Merger related expenses

15,183



nm




nm


Exit and disposal costs

12,763


2,589


393%




nm


Non-interest expense (excluding above items)

589,556


609,497


(3)%


142,954


149,065


(4)%


Allocated expenses, net (1)

8,174


(11,557)


(171)%


(8,174)


11,557


(171)%


Total non-interest expense

625,676


2,385,465


(74)%


134,780


160,622


(16)%

Income (loss) before income taxes

493,711


(1,582,896)


(131)%


64,449


126,476


(49)%

Provision for income taxes

121,748


35,381


244%


16,112


31,619


(49)%

Net income (loss)

$      371,963


$  (1,618,277)


(123)%


$        48,337


$        94,857


(49)%














Effective Tax Rate

25 %


(2) %




25 %


25 %



Efficiency Ratio

58 %


237 %




68 %


56 %
















LHFS Production Statistics:












Closed loan volume for-sale







$   4,747,104


$   6,666,500


(29)%

Gain on sale margin







3.32 %


4.62 %



Direct LHFS expense







$        94,718


$      126,990


(25)%

Direct LHFS expenses as % of volume







2.00 %


1.90 %



nm = not meaningful













(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.

 

1 "Non-GAAP" financial measures. A reconciliation to the comparable GAAP measurement is provided on page 4
2 "Non-GAAP" financial measure. A reconciliation to the comparable GAAP measurement is provided on page 4

 

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SOURCE Umpqua Holdings Corporation