Operating earnings1 of $62.1
million, or $0.28 per share
Operating results include $11.3 million in
negative fair-value adjustments to mortgage servicing rights and
swap instruments driven by decline in long-term rates
Strong loan and lease growth (before sales)
of $469 million, or 12% annualized, and deposit growth of $322
million, or 8% annualized
Tangible book value per share1
increased by 1.8% sequentially to $9.08
Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”)
reported net earnings available to common shareholders of $57.5
million for the third quarter of 2015, compared to $54.7 million
for the second quarter of 2015 and $58.7 million for the third
quarter of 2014. Earnings per diluted common share were $0.26 for
the third quarter of 2015, compared to $0.25 for the second quarter
of 2015 and $0.27 for the third quarter of 2014.
Operating earnings1, which represent earnings available to
common shareholders before gains or losses on junior subordinated
debentures carried at fair value, net of tax, and merger related
expenses, net of tax, were $62.1 million for the third quarter of
2015, compared to $68.7 million for the second quarter of 2015 and
$65.0 million for the third quarter of 2014. Operating earnings per
diluted common share were $0.28 for the third quarter of 2015,
compared to $0.31 for the second quarter of 2015 and $0.30 for the
third quarter of 2014.
“Umpqua’s financial performance in the third quarter reflects
the strength of our footprint and unique position in strategic
growth markets, as well as our focus on both managing capital
wisely and increasing shareholder value,” said Ray Davis,
President and CEO of Umpqua Holdings Corporation. “Despite the
difficult low interest rate environment, the company performed
strongly, including robust loan and deposit growth, decreased
non-interest expense, additional cost synergies, and an increased
quarterly dividend per share. We also continue to invest in the
future of the company, and look forward to introducing new
developments in the coming months that will continue advancing the
innovative customer experience and product delivery for which
Umpqua is known.”
Highlights (as compared to the prior
quarter):
- Third quarter of 2015 operating
earnings1 decreased to $62.1 million:
- Net interest income increased by $1.6
million, driven primarily by strong loan growth;
- Provision for loan and lease losses
decreased by $3.1 million, driven primarily by improved portfolio
performance;
- Non-interest income decreased by $20.0
million, reflecting $11.3 million in negative fair value
adjustments to the mortgage servicing rights ("MSR") asset and swap
instruments, lower revenues from the origination and sale of
residential mortgages, and lower gains related to portfolio loan
sales;
- Non-interest expense (excluding
merger-related expense) decreased by $3.4 million, driven primarily
by a $2.3 million decrease in variable mortgage banking expenses
related to lower mortgage origination volume and additional
merger-related cost synergies, partially offset by higher other
operating expenses;
- Strong loan and deposit growth:
- Gross loans and leases (before sales)
grew by $468.7 million, or 12% annualized;
- Deposits grew by $322.0 million, or 8%
annualized;
- Prudently managed capital:
- Tangible book value per common share1
increased to $9.08, from $8.92;
- Under Basel III rules, estimated total
risk-based capital ratio of 14.4% and estimated Tier 1 common to
risk weighted assets ratio of 11.4%;
- Increased quarterly dividend to $0.16
per common share; and
- Repurchased 150,000 shares of common
stock for $2.5 million.
For the nine months ended September 30, 2015, the Company
reported net earnings available to common shareholders of $159.3
million, or $0.72 per diluted common share, compared to $94.7
million, or $0.54 per diluted common share, for the nine months
ended September 30, 2014. For the nine months ended
September 30, 2015, operating earnings1 were $187.2 million,
or $0.85 per diluted common share, compared to $143.1 million, or
$0.81 per diluted common share, for the nine months ended
September 30, 2014.
1 "Non-GAAP" financial measure. More information regarding this
measurement and a reconciliation to the comparable GAAP measurement
is provided under the heading Non-GAAP Financial Measures
below.
Balance Sheet
Total consolidated assets were $23.2 billion as of
September 30, 2015, compared to $22.8 billion as of
June 30, 2015 and $22.5 billion as of September 30, 2014.
Including secured off-balance sheet lines of credit, the Company
had total available liquidity of $7.4 billion as of
September 30, 2015, representing 32% of total assets and 43%
of total deposits.
Gross loans and leases were $16.4 billion as of
September 30, 2015, an increase of $413.7 million, or 10%
annualized, from $16.0 billion as of June 30, 2015. This
increase was driven by strong loan growth within the commercial,
multifamily and mortgage portfolios, partially offset by a decline
in non-owner occupied commercial real estate loans. During the
third quarter of 2015, the Company also sold $54.9 million of
portfolio residential mortgage loans. Excluding the impact of these
sales, gross loan growth was $468.7 million, or 12% annualized.
Total deposits were $17.5 billion as of September 30, 2015,
an increase of $322.0 million, or 8% annualized, from $17.1 billion
as of June 30, 2015. This increase was primarily attributable
to growth in non-interest bearing demand and money market deposits,
partially offset by a decrease in time deposits.
Net Interest Income
Net interest income was $219.7 million for the third quarter of
2015, up $1.6 million from the prior quarter, but down $6.0 million
from the same period in the prior year. The increase from the prior
quarter was primarily driven by strong loan growth and one
additional day in the quarter, partially offset by a 7 basis point
decline in net interest margin. In addition, the level of interest
income arising from the accretion of the credit discount recorded
on loans acquired from Sterling decreased to $14.3 million for the
third quarter of 2015, compared to $16.1 million in the prior
quarter.
The Company’s net interest margin was 4.43% for the third
quarter of 2015, down from 4.50% for the second quarter of 2015 and
from 4.75% for the third quarter of 2014. The decrease from the
prior quarter was primarily driven by a lower average yield on
interest earning assets and a lower level of interest income
arising from the accretion of the credit discount recorded on loans
acquired from Sterling.
Credit Quality
Under acquisition accounting, loans (including those considered
non-performing) acquired from Sterling were recorded at their
estimated fair value, and the related allowance for loan losses was
eliminated. As a result, the Company wrote down the value of the
loan and lease portfolio acquired from Sterling as of the
acquisition date. The credit portion of the fair value mark is not
reflected in the reported allowance for loan and lease losses, or
its related allowance coverage ratios, but we believe should be
considered when comparing the current quarter ratios to similar
ratios in periods prior to the acquisition of Sterling.
Loans acquired with significant deteriorated credit quality are
accounted for as purchased credit impaired pools. Accordingly,
loans included in the purchased credit impaired pools are not
reported as non-performing loans based upon their individual
performance status.
During the third quarter of 2015, the Company reported $14.3
million of accretion related to the Sterling credit discount in
interest income. As of September 30, 2015, the purchased
non-credit impaired loans had approximately $82.5 million of
remaining credit discount that will accrete into interest income
over the life of the loans, and the purchased credit impaired loan
pools had approximately $49.8 million of remaining total
discount.
The allowance for loan and lease losses was $130.1 million, or
0.79% of loans and leases, as of September 30, 2015. To
provide better comparability to prior periods, this pro-forma ratio
would have been approximately 1.6% after grossing up the allowance
for loan and lease losses and the loans and leases by the amount of
the credit discount remaining as of quarter-end. This compares to a
pro-forma ratio of approximately 1.7% as of June 30, 2015.
The provision for loan and lease losses was $8.2 million for the
third quarter of 2015, a decrease of $3.1 million from the prior
quarter. The decrease from the prior quarter was primarily driven
by improved credit performance within the loan and lease portfolio.
Charge-offs, net of recoveries, were $5.1 million for the third
quarter of 2015, compared to $4.3 million in the prior quarter.
Non-performing assets decreased to $64.8 million, or 0.28% of
total assets, as of September 30, 2015, compared to $70.1
million, or 0.31% of total assets, as of June 30, 2015. Loans
past due 31 to 89 days were $28.9 million, or 0.18% of loans and
leases, as of September 30, 2015, compared to $25.6 million,
or 0.16% of loans and leases, as of June 30, 2015.
Restructured loans on accrual status were $35.7 million as of
September 30, 2015, compared to $37.0 million as of
June 30, 2015.
Non-interest Income
Total non-interest income was $60.3 million for the third
quarter of 2015, down $20.1 million from the prior quarter and $1.8
million from the same period in the prior year. The decrease from
the prior quarter was primarily driven by lower mortgage banking
revenue, lower gains related to portfolio loan sales, and lower
other income. The decrease in other income was primarily
attributable to a fair value loss of $1.2 million on debt capital
market swap derivatives, compared to a gain of $1.4 million in the
prior quarter, resulting from the decline in long-term interest
rates.
Residential mortgage banking revenue, which includes revenue
from the origination and sale of residential mortgage loans,
revenue from the servicing of residential mortgage loans and
changes to the fair value of the residential MSR asset, decreased
by $16.0 million from the prior quarter. Revenue from the
origination and sale of residential mortgages decreased by $6.8
million from the prior quarter, driven primarily by a 15% decrease
in for sale mortgage originations and a lower home lending gain on
sale margin, reflecting increased competitive pressures in the
mortgage market. The change in fair value related to the MSR asset
resulted in a loss of $10.1 million for the third quarter of 2015,
as compared to a loss of $0.4 million for the prior quarter,
reflecting the linked quarter decline in interest rates and its
impact on the prepayment speed assumption for the MSR asset.
The Company’s gain on sale margin was 3.19% for the third
quarter of 2015, down from 3.38% in the prior quarter. Of the
current quarter’s mortgage production, 70% related to purchase
activity, as compared to 59% for the prior quarter and 71% for the
same period in the prior year.
As of September 30, 2015, the Company serviced $12.7
billion of residential mortgage loans for others, and its related
MSR asset was valued at $124.8 million, or 0.98% of the total
serviced portfolio principal balance. This compares to $12.3
billion of residential mortgage loans serviced for others as of
June 30, 2015, with a related MSR asset of $127.2 million, or
1.03% of the total serviced portfolio principal balance. As of
September 30, 2014, the Company serviced $11.3 billion of
residential mortgage loans for others, and its related MSR asset
was valued at $118.7 million, or 1.05% of the total serviced
portfolio principal balance.
Non-interest Expense
Non-interest expense was $182.7 million for the third quarter of
2015, which included $6.0 million of merger-related expenses. This
compares to $201.9 million, including $21.8 million of
merger-related expenses, for the second quarter of 2015 and $182.6
million, including $8.6 million of merger-related expenses, for the
third quarter of 2014.
Excluding merger-related expenses, non-interest expense
decreased by $3.4 million from the prior quarter. The decrease from
the prior quarter reflected a $2.3 million decrease in variable
mortgage banking expenses, driven by lower mortgage volume, and
additional merger-related cost synergies realized during the
quarter, partially offset by higher other operating expenses.
The third quarter of 2015 non-interest expense run-rate does not
reflect the full benefit of the anticipated Sterling merger cost
synergies. The remaining cost synergies are expected to be realized
over the next several months.
Income taxes
The Company recorded a provision for income taxes of $31.6
million for the third quarter of 2015, representing an effective
tax rate of 35.4% for the quarter, compared to $30.6 million, with
an effective tax rate of 35.8%, for the second quarter of 2015.
Capital
As of September 30, 2015, the Company’s tangible book value
per common share1 was $9.08 and its ratio of tangible common equity
to tangible assets1 was 9.37%, compared to $8.92 and 9.38%,
respectively, in the prior quarter.
During the third quarter of 2015, the Company repurchased
150,000 shares of common stock for $2.5 million. Year-to-date
through September 30, 2015, the Company has repurchased
510,000 shares for $8.9 million. The Company may repurchase up to
11.5 million of additional shares under the current stock
repurchase plan, which was recently extended to July 31, 2017 by
the Company's Board of Directors.
Based on Basel III rules, as of September 30, 2015, the
Company’s estimated total risk-based capital ratio was 14.4% and
its estimated Tier 1 common to risk weighted assets ratio was
11.4%, compared to 14.6% and 11.5%, respectively, as of
June 30, 2015. The Company remains above current
“well-capitalized” regulatory minimums. The regulatory capital
ratios as of September 30, 2015 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 certain 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.
The Company recognizes gains or losses on its junior
subordinated debentures carried at fair value resulting from
changes in interest rates and the estimated market credit risk
adjusted spread that do not directly correlate with the Company’s
operating performance. Also, the Company incurs significant
expenses related to the completion and integration of mergers and
acquisitions. Additionally, it may recognize goodwill impairment
losses that have no direct effect on the Company’s or the Bank’s
cash balances, liquidity, or regulatory capital ratios. Lastly, the
Company may recognize one-time bargain purchase gains on certain
acquisitions that are not reflective of the Company’s on-going
earnings power. Accordingly, management believes that our operating
results are best measured on a comparative basis excluding the
impact of gains or losses on junior subordinated debentures
measured at fair value, net of tax, merger-related expenses, net of
tax, and other charges related to business combinations such as
goodwill impairment charges or bargain purchase gains, net of tax.
The Company defines operating earnings as earnings available to
common shareholders before gains or losses on junior subordinated
debentures carried at fair value, net of tax, bargain purchase
gains on acquisitions, net of tax, merger related expenses, net of
tax, and goodwill impairment, and we calculate operating earnings
per diluted share by dividing operating earnings by the same
diluted share total used in determining diluted earnings per common
share.
The following table provides the reconciliation of net earnings
available to common shareholders (GAAP) to operating earnings
(non-GAAP), and earnings per diluted common share (GAAP) to
operating earnings per diluted share (non-GAAP) for the periods
presented:
Quarter Ended % Change (In
thousands, except per share data)
Sep 30,2015
Jun 30,2015
Mar 31,2015
Dec 31,2014
Sep 30,2014
Seq.Quarter
YearoverYear
Net earnings available to common shareholders $ 57,523 $
54,691 $ 47,045 $ 52,436 $ 58,741 5
%
(2 )% Adjustments: Net loss on junior subordinated
debentures carried at fair value, net of tax (1) 954 943 933 953
955 1
%
0
%
Merger related expenses, net of tax (1) 3,595 13,078
8,449 6,038 5,274
(73 )% (32 )% Operating earnings $ 62,072 $ 68,712
$ 56,427 $ 59,427 $
64,970 (10 )% (4 )%
Earnings per diluted
share:
Earnings available to common shareholders $ 0.26 $ 0.25 $ 0.21 $
0.24 $ 0.27 4
%
(4 )% Operating earnings $ 0.28 $ 0.31 $ 0.26 $ 0.27 $ 0.30 (10 )%
(7 )%
Nine Months Ended
%Change
Sep 30,2015
Sep 30,2014
YearoverYear
Net earnings available to common shareholders $ 159,259 $
94,738 68
%
Adjustments: Net loss on junior subordinated debentures carried at
fair value, net of tax (1) 2,830 2,101 35
%
Merger related expenses, net of tax (1) 25,122 46,273
(46 )% Operating earnings $ 187,211 $ 143,112
31
%
Earnings per diluted
share:
Earnings available to common shareholders $ 0.72 $ 0.54 33 %
Operating earnings $ 0.85 $ 0.81 5 % (1) Income tax effect
of pro forma operating earnings adjustments at 40% for
tax-deductible items. nm = not meaningful.
Management believes tangible common equity and the tangible
common equity ratio are meaningful measures of capital adequacy
because they provide a meaningful base for period-to-period and
company-to-company comparisons, which management believes will
assist investors in assessing the capital of the Company and the
ability to absorb potential losses. Tangible common equity is
calculated as total shareholders' equity less goodwill and other
intangible assets, net (excluding MSRs). Tangible assets are total
assets less goodwill and other intangible assets, net (excluding
MSRs). The tangible common equity ratio is calculated as tangible
common shareholders’ equity divided by tangible assets.
The following table provides reconciliations of ending
shareholders’ equity (GAAP) to ending tangible common equity
(non-GAAP), and ending assets (GAAP) to ending tangible assets
(non-GAAP).
(In thousands, except per
share data) Sep 30, 2015 Jun 30, 2015
Mar 31, 2015 Dec 31, 2014 Sep
30, 2014 Total shareholders' equity $ 3,835,552 $ 3,804,179 $
3,800,970 $ 3,777,626 $ 3,749,101 Subtract: Goodwill and other
intangible assets, net 1,836,954 1,839,760
1,842,567 1,842,958 1,845,242
Tangible common shareholders' equity $ 1,998,598
$ 1,964,419 $ 1,958,403 $
1,934,668 $ 1,903,859 Total assets $
23,162,304 $ 22,793,331 $ 22,953,158 $ 22,609,903 $ 22,484,652
Subtract: Goodwill and other intangible assets, net 1,836,954
1,839,760 1,842,567
1,842,958 1,845,242 Tangible assets $
21,325,350 $ 20,953,571 $ 21,110,591
$ 20,766,945 $ 20,639,410 Common
shares outstanding at period end 220,217 220,280 220,454 220,161
217,262 Tangible common equity ratio 9.37 % 9.38 % 9.28 % 9.32 %
9.22 % Tangible book value per common share $ 9.08 $ 8.92 $ 8.88 $
8.79 $ 8.76
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 use of technology, 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
Private Bank serves high net worth individuals and nonprofits,
providing trust and investment services. Umpqua Holdings
Corporation is headquartered in Portland, Oregon. For more
information, visit www.umpquaholdingscorp.com.
Earnings Conference Call
Information
The Company will host its third quarter 2015 earnings conference
call on Thursday, October 22, 2015, at 10:00 a.m. PST (1:00 p.m.
EST). During the call, the Company will provide an update on recent
activities and discuss its third quarter 2015 financial results.
There will be a live question-and-answer session following the
presentation. To join the call, please dial (888) 471-3840 ten
minutes prior to the start time and enter conference ID: 370250. A
re-broadcast will be available approximately two hours after the
call by dialing (888) 203-1112 and entering conference ID 370250.
The earnings conference call will also be available as an
audiocast, which can be accessed on the Company’s investor
relations page at www.umpquaholdingscorp.com. A slide presentation
to accompany the call will also be posted on the website before the
call.
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. In this press release we
make forward-looking statements about the integration of the merger
with Sterling Financial Corporation; timing and amount of
merger-related synergies; credit discount accretion related to the
merger, and planned investments and initiatives. Specific risks
that could cause results to differ from these forward looking
statements are Umpqua’s ability to promptly and effectively
integrate the businesses of Sterling and Umpqua and achieve the
synergies and earnings accretion contemplated by the Sterling
merger. Additional 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, changes in the
discounted cash flow model used to determine the fair value of
subordinated debentures; prolonged low interest rate environment;
unanticipated weakness in loan demand or loan pricing;
deterioration in the economy; material reductions in revenue or
material increases in expenses; lack of strategic growth
opportunities or our failure to execute on those opportunities; our
inability to effectively manage problem credits; certain loan
assets becoming ineligible for loss sharing; unanticipated
increases in the cost of deposits; the consequences of a phase-out
of junior subordinated debentures from Tier 1 capital; the
diversion of management time on issues related to merger
integration; changes in laws or regulations; and changes in general
economic conditions.
Umpqua Holdings Corporation Consolidated
Statements of Income (Unaudited)
Quarter Ended % Change (In
thousands, except per share data)
Sep 30,2015
Jun 30,2015
Mar 31,2015
Dec 31,2014
Sep 30,2014
Seq.Quarter
YearoverYear
Interest income: Loans and leases $ 219,488 $ 217,828
$ 214,663 $ 226,853 $ 223,972 1
%
(2 )% Interest and dividends on investments: Taxable 11,639 11,268
11,551 11,629 12,136 3
%
(4 )% Exempt from federal income tax 2,637 2,657 2,720 2,746 2,790
(1 )% (5 )% Dividends 113 168 101 66 81 (33 )% 40
%
Temporary investments & interest bearing deposits 440
549 825 857 544
(20 )% (19 )% Total interest income 234,317 232,470 229,860
242,151 239,523 1
%
(2 )% Interest expense: Deposits 7,450 7,381 7,103 7,119 6,773 1
%
10
%
Repurchase agreements 43 43 48 48 54 0
%
(20 )% Term debt 3,629 3,492 3,464 3,570 3,586 4
%
1
%
Junior subordinated debentures 3,465 3,406
3,337 3,399 3,394 2
%
2
%
Total interest expense 14,587 14,322 13,952 14,136 13,807 2
%
6
%
Net interest income 219,730 218,148 215,908 228,015 225,716 1
%
(3 )% Provision for loan and lease losses 8,153 11,254 12,637 5,241
14,333 (28 )% (43 )% Non-interest income: Service charges on
deposits 15,638 14,825 14,296 15,472 16,090 5
%
(3 )% Brokerage revenue 5,003 4,648 4,769 4,960 4,882 8
%
2
%
Residential mortgage banking revenue, net 24,041 40,014 28,227
16,489 25,996 (40 )% (8 )% Gain on investment securities, net 220
19 116 1,026 902 nm (76 )% Gain on loan sales 5,212 8,711 6,728
5,730 8,309 (40 )% (37 )% Loss on junior subordinated debentures
carried at fair value (1,590 ) (1,572 ) (1,555 ) (1,589 ) (1,590 )
1
%
0
%
Change in FDIC indemnification asset 1,432 (1,199 ) (1,286 ) (1,982
) (2,728 ) (219 )% (152 )% BOLI income 1,656 2,023 2,781 1,971
2,161 (18 )% (23 )% Other income 8,737 12,930
9,519 8,228 8,143 (32 )%
7
%
Total non-interest income 60,349 80,399 63,595 50,305 62,165 (25 )%
(3 )% Non-interest expense: Salaries and employee benefits 105,974
110,786 107,923 104,039 102,564 (4 )% 3
%
Occupancy and equipment, net 37,235 34,868 32,150 32,987 33,029 7
%
13
%
Intangible amortization 2,806 2,807 2,806 3,102 3,103 0
%
(10 )% FDIC assessments 3,369 3,155 3,214 3,522 3,038 7
%
11
%
(Gain) loss on other real estate owned, net (158 ) 480 1,814 3,609
313 (133 )% (150 )% Merger related expenses 5,991 21,797 14,082
10,171 8,632 (73 )% (31 )% Other expense 27,469
28,004 31,109 33,426
31,879 (2 )% (14 )% Total non-interest expense 182,686
201,897 193,098 190,856 182,558 (10 )% 0
%
Income before provision for income taxes 89,240 85,396 73,768
82,223 90,990 5
%
(2 )% Provision for income taxes 31,633 30,612
26,639 29,641 32,107 3
%
(1 )% Net income 57,607 54,784 47,129 52,582 58,883 5
%
(2 )% Dividends and undistributed earnings allocated to
participating securities 84 93 84
146 142 (10 )% (41 )% Net
earnings available to common shareholders $ 57,523 $
54,691 $ 47,045 $ 52,436
$ 58,741 5
%
(2 )% Weighted average basic shares outstanding 220,297
220,463 220,349 218,963 217,245 0
%
1
%
Weighted average diluted shares outstanding 220,904 221,150 221,051
219,974 218,941 0
%
1
%
Earnings per common share – basic $ 0.26 $ 0.25 $ 0.21 $ 0.24 $
0.27 4
%
(4 )% Earnings per common share – diluted $ 0.26 $ 0.25 $ 0.21 $
0.24 $ 0.27 4
%
(4 )% nm = not meaningful
Umpqua Holdings
Corporation Consolidated Statements of Income
(Unaudited) Nine Months Ended
% Change
(In thousands, except per share data) Sep 30, 2015
Sep 30, 2014
YearoverYear
Interest income Loans and leases $ 651,979 $ 536,950 21
%
Interest and dividends on investments: Taxable 34,458 34,155 1
%
Exempt from federal income tax 8,014 7,599 5
%
Dividends 382 259 47
%
Temporary investments & interest bearing deposits 1,814
1,407 29
%
Total interest income 696,647 580,370 20
%
Interest expense Deposits 21,934 16,696 31
%
Repurchase agreements 134 298 (55 )% Term debt 10,585 9,223 15
%
Junior subordinated debentures 10,208 8,340 22
%
Total interest expense 42,861 34,557 24
%
Net interest income 653,786 545,813 20
%
Provision for loan and lease losses 32,044 35,000 (8 )%
Non-interest income Service charges on deposits 44,759 39,228 14
%
Brokerage revenue 14,420 13,173 9
%
Residential mortgage banking revenue, net 92,282 60,776 52
%
Gain on investment securities, net 355 1,878 (81 )% Gain on loan
sales 20,651 9,383 120
%
Loss on junior subordinated debentures carried at fair value (4,717
) (3,501 ) 35
%
Change in FDIC indemnification asset (1,053 ) (13,169 ) (92 )% BOLI
Income 6,460 4,864 33
%
Other income 31,186 18,237 71
%
Total non-interest income 204,343 130,869 56
%
Non-interest expense Salaries and employee benefits 324,683 251,340
29
%
Occupancy and equipment, net 104,253 78,276 33
%
Intangible amortization 8,419 7,105 18
%
FDIC assessments 9,738 7,476 30
%
Loss on other real estate owned, net 2,136 507 nm Merger related
expenses 41,870 72,146 (42 )% Other expense 86,582 76,357
13
%
Total non-interest expense 577,681 493,207 17
%
Income before provision for income taxes 248,404 148,475 67
%
Provision for income taxes 88,884 53,399 66
%
Net income 159,520 95,076 68
%
Dividends and undistributed earnings
allocated to participating securities
261 338 (23 )% Net earnings available to common
shareholders $ 159,259 $ 94,738 68
%
Weighted average basic shares outstanding 220,370 175,627 25
%
Weighted average diluted shares outstanding 221,062 176,656 25
%
Earnings per common share – basic $ 0.72 $ 0.54 33
%
Earnings per common share – diluted $ 0.72 $ 0.54 33
%
nm = not meaningful
Umpqua Holdings
Corporation
Consolidated Balance Sheets
(Unaudited) %
Change (In thousands, except per share data) Sep 30,
2015 Jun 30, 2015 Mar 31, 2015
Dec 31, 2014 Sep 30, 2014
Seq.Quarter
YearoverYear
Assets: Cash and due from banks $ 283,773 $ 364,256 $
292,558 $ 282,455 $ 266,624 (22 )% 6
%
Interest bearing cash and temporary investments 673,843 515,691
1,088,316 1,322,716 1,177,086 31
%
(43 )% Investment securities: Trading, at fair value 9,509 10,005
10,452 9,999 9,727 (5 )% (2 )% Available for sale, at fair value
2,482,478 2,557,245 2,535,121 2,298,555 2,400,061 (3 )% 3
%
Held to maturity, at amortized cost 4,699 4,807 4,953 5,211 5,356
(2 )% (12 )% Loans held for sale 398,015 419,704 406,487 286,802
265,800 (5 )% 50
%
Loans and leases 16,387,934 15,974,197 15,548,957 15,327,732
15,259,201 3
%
7
%
Allowance for loan and lease losses (130,133 ) (127,071 )
(120,104 ) (116,167 ) (115,635 ) 2
%
13
%
Loans and leases, net 16,257,801 15,847,126 15,428,853 15,211,565
15,143,566 3
%
7
%
Restricted equity securities 46,904 46,917 117,218 119,334 120,759
0
%
(61 )% Premises and equipment, net 330,306 331,208 322,925 317,834
314,364 0
%
5
%
Goodwill 1,788,640 1,788,640 1,788,640 1,786,225 1,785,407 0
%
0
%
Other intangible assets, net 48,314 51,120 53,927 56,733 59,835 (5
)% (19 )% Residential mortgage servicing rights, at fair value
124,814 127,206 116,365 117,259 118,725 (2 )% 5
%
Other real estate owned 23,892 23,038 32,064 37,942 34,456 4
%
(31 )% FDIC indemnification asset 892 432 1,861 4,417 7,811 106
%
(89 )% Bank owned life insurance 297,321 295,551 294,697 294,296
293,511 1
%
1
%
Deferred tax assets, net 149,320 181,245 198,778 230,442 251,854
(18 )% (41 )% Other assets 241,783 229,140
259,943 228,118 229,710 6
%
5
%
Total assets $ 23,162,304 $ 22,793,331
$ 22,953,158 $ 22,609,903 $ 22,484,652
2
%
3
%
Liabilities: Deposits $ 17,467,024 $ 17,145,046 $ 17,222,566
$ 16,892,099 $ 16,727,610 2
%
4
%
Securities sold under agreements to repurchase 323,722 325,711
321,202 313,321 339,367 (1 )% (5 )% Term debt 889,358 889,997
965,675 1,006,395 1,057,140 0
%
(16 )% Junior subordinated debentures, at fair value 253,665
252,214 250,652 249,294 247,528 1
%
2
%
Junior subordinated debentures, at amortized cost 101,334 101,415
101,496 101,576 101,657 0
%
0
%
Other liabilities 291,649 274,769
290,597 269,592 262,249 6
%
11
%
Total liabilities 19,326,752 18,989,152 19,152,188 18,832,277
18,735,551 2
%
3
%
Shareholders' equity: Common stock 3,517,751 3,517,557
3,521,201 3,519,316 3,515,621 0
%
0
%
Retained earnings 303,729 281,573 260,128 246,242 226,895 8
%
34
%
Accumulated other comprehensive income 14,072 5,049
19,641 12,068 6,585
179
%
114
%
Total shareholders' equity 3,835,552 3,804,179
3,800,970 3,777,626 3,749,101
1
%
2
%
Total liabilities and shareholders' equity $ 23,162,304
$ 22,793,331 $ 22,953,158 $
22,609,903 $ 22,484,652 2
%
3
%
Common shares outstanding at period end 220,217 220,280
220,454 220,161 217,262 0
%
1
%
Book value per common share $ 17.42 $ 17.27 $ 17.24 $ 17.16 $ 17.26
1
%
1
%
Tangible book value per common share $ 9.08 $ 8.92 $ 8.88 $ 8.79 $
8.76 2
%
4
%
Tangible equity - common $ 1,998,598 $ 1,964,419 $ 1,958,403 $
1,934,668 $ 1,903,859 2
%
5
%
Tangible common equity to tangible assets 9.37 % 9.38 % 9.28 % 9.32
% 9.22 % 0
%
2
%
Umpqua Holdings Corporation Loan & Lease
Portfolio (Unaudited)
(Dollars in thousands) Sep 30, 2015
Jun 30, 2015 Mar 31, 2015 Dec
31, 2014 Sep 30, 2014 % Change
Amount Amount Amount
Amount Amount
Seq.Quarter
YearoverYear
Loans &
leases:
Commercial real estate: Non-owner occupied term, net $ 3,148,288 $
3,294,359 $ 3,303,629 $ 3,290,610 $ 3,423,453 (4 )% (8 )% Owner
occupied term, net 2,655,340 2,636,800 2,577,484 2,633,864
2,682,870 1
%
(1 )% Multifamily, net 2,961,609 2,859,884 2,764,403 2,638,618
2,565,711 4
%
15
%
Commercial construction, net 287,757 244,354 238,303 258,722
247,816 18
%
16
%
Residential development, net 94,380 76,734 81,160 81,846 76,849 23
%
23
%
Commercial: Term, net 1,398,346 1,374,528 1,411,043 1,396,089
1,427,121 2
%
(2 )% Lines of credit & other, net 1,014,523 981,897 993,814
1,029,620 1,037,278 3
%
(2 )% Leases & equipment finance, net 679,033 630,695 570,492
523,114 492,221 8
%
38
%
Residential real estate: Mortgage, net 2,740,228 2,533,042
2,330,325 2,233,735 2,102,333 8
%
30
%
Home equity lines & loans, net 910,287 882,596 863,269 852,478
836,054 3
%
9
%
Consumer & other, net 498,143 459,308
415,035 389,036 367,495 8
%
36
%
Total, net of deferred fees and costs $ 16,387,934 $
15,974,197 $ 15,548,957 $ 15,327,732
$ 15,259,201 3
%
7
%
Loan & leases
mix:
Commercial real estate: Non-owner occupied term, net 19 % 20 % 20 %
20 % 22 % Owner occupied term, net 16 % 17 % 17 % 17 % 18 %
Multifamily, net 17 % 17 % 17 % 17 % 17 % Commercial construction,
net 2 % 2 % 2 % 2 % 2 % Residential development, net 1 % — % 1 % 1
% 1 % Commercial: Term, net 9 % 9 % 9 % 9 % 9 % Lines of credit
& other, net 6 % 6 % 6 % 7 % 7 % Leases & equipment
finance, net 4 % 4 % 4 % 3 % 3 % Residential real estate: Mortgage,
net 17 % 16 % 15 % 15 % 14 % Home equity lines & loans, net 6 %
6 % 6 % 6 % 5 % Consumer & other, net 3 % 3 % 3 %
3 % 2 % Total 100 % 100 % 100 %
100 % 100 %
Umpqua Holdings Corporation
Deposits by Type/Core Deposits (Unaudited)
(Dollars in
thousands) Sep 30, 2015 Jun 30, 2015
Mar 31, 2015 Dec 31, 2014 Sep
30, 2014 % Change Amount Amount
Amount Amount Amount
Seq.Quarter
YearoverYear
Deposits:
Demand, non-interest bearing $ 5,207,129 $ 4,927,526 $ 4,930,642 $
4,744,804 $ 4,741,897 6
%
10
%
Demand, interest bearing 2,098,223 2,090,595 2,085,368 2,054,994
1,942,792 0
%
8
%
Money market 6,514,174 6,374,624 6,287,165 6,113,138 5,998,339 2
%
9
%
Savings 1,102,611 1,058,337 1,022,829 971,185 952,122 4
%
16
%
Time 2,544,887 2,693,964 2,896,562
3,007,978 3,092,460 (6 )% (18 )%
Total $ 17,467,024 $ 17,145,046 $
17,222,566 $ 16,892,099 $ 16,727,610
2
%
4
%
Total core deposits (1) $ 15,940,229 $ 15,529,997 $
15,304,001 $ 15,126,378 $ 14,653,183 3
%
9
%
Deposit
mix:
Demand, non-interest bearing 30 % 29 % 29 % 28 % 28 % Demand,
interest bearing 12 % 12 % 12 % 12 % 12 % Money market 37 % 37 % 36
% 36 % 36 % Savings 6 % 6 % 6 % 6 % 6 % Time 15 % 16 %
17 % 18 % 18 % Total 100 % 100 %
100 % 100 % 100 %
Number of open
accounts:
Demand, non-interest bearing 370,128 367,086 368,701 367,854
366,279 Demand, interest bearing 88,171 90,021 85,082 86,135 87,223
Money market 57,622 58,156 61,991 63,095 63,979 Savings 153,534
152,404 150,989 150,548 150,527 Time 48,168 49,983
52,179 53,530 54,565
Total 717,623 717,650 718,942
721,162 722,573
Average balance
per account:
Demand, non-interest bearing $ 14.1 $ 13.4 $ 13.4 $ 12.9 $ 12.9
Demand, interest bearing 23.8 23.2 24.5 23.9 22.3 Money market
113.1 109.6 101.4 96.9 93.8 Savings 7.2 6.9 6.8 6.5 6.3 Time 52.8
53.9 55.5 56.2 56.7 Total $ 24.3 $ 23.9 $ 24.0 $ 23.4 $ 23.2
(1) Core deposits are defined as total
deposits less time deposits greater than $100,000.
Umpqua Holdings Corporation
Credit Quality – Non-performing Assets (Unaudited)
Quarter
Ended % Change (Dollars in thousands)
Sep 30,2015
Jun 30,2015
Mar 31,2015
Dec 31,2014
Sep 30,2014
Seq.Quarter
YearoverYear
Non-performing
assets:
Loans and leases on non-accrual status $ 30,989 $ 33,572 $ 40,246 $
52,041 $ 42,397 (8 )% (27 )% Loans and leases past due 90+ days
& accruing 9,967 13,529 10,416
7,512 7,416 (26 )% 34
%
Total non-performing loans and leases 40,956 47,101 50,662 59,553
49,813 (13 )% (18 )% Other real estate owned 23,892
23,038 32,064 37,942
34,456 4
%
(31 )% Total $ 64,848 $ 70,139 $ 82,726
$ 97,495 $ 84,269 (8 )% (23 )%
Performing restructured loans and leases $ 35,706 $ 37,023 $
60,896 $ 54,836 $ 63,507 (4 )% (44 )% Loans and leases past due
31-89 days $ 28,919 $ 25,553 $ 20,488 $ 24,659 $ 34,025 13
%
(15 )% Loans and leases past due 31-89 days to total loans and
leases 0.18 % 0.16 % 0.13 % 0.16 % 0.22 % Non-performing loans and
leases to total loans and leases 0.25 % 0.29 % 0.33 % 0.39 % 0.33 %
Non-performing assets to total assets 0.28 % 0.31 % 0.36 % 0.43 %
0.37 %
Umpqua Holdings Corporation Credit
Quality – Allowance for Loan and Lease Losses
(Unaudited) Quarter Ended %
Change (Dollars in thousands)
Sep 30,2015
Jun 30,2015
Mar 31,2015
Dec 31,2014
Sep 30,2014
Seq.Quarter
Year overYear
Allowance for
loan and lease losses:
Balance beginning of period $
127,071 $ 120,104 $ 116,167 $ 115,635 $ 106,495 Provision for loan
and lease losses 8,153 11,254 12,637 5,241 14,333 (28 )% (43 )%
Charge-offs (8,476 ) (7,442 ) (12,545 ) (9,088 ) (7,524 ) 14
%
13
%
Recoveries 3,385 3,155 3,845
4,379 2,331 7
%
45
%
Net charge-offs (5,091 ) (4,287 ) (8,700 )
(4,709 ) (5,193 ) 19
%
(2 )% Total allowance for loan and lease losses 130,133 127,071
120,104 116,167 115,635 2
%
13
%
Reserve for unfunded commitments 3,081 2,864
3,194 3,539 4,388 Total
allowance for credit losses $ 133,214 $ 129,935
$ 123,298 $ 119,706 $
120,023 Net charge-offs to average loans and leases
(annualized) 0.13 % 0.11 % 0.23 % 0.12 % 0.14 % Recoveries to gross
charge-offs 39.94 % 42.39 % 30.65 % 48.18 % 30.98 % Allowance for
loan and lease losses to loans and leases 0.79 % 0.80 % 0.77 % 0.76
% 0.76 % Allowance for credit losses to loans and leases 0.81 %
0.81 % 0.79 % 0.78 % 0.79 %
Umpqua Holdings
Corporation Credit Quality – Allowance for Loan and Lease
Losses (Unaudited) Nine Months Ended %
Change (Dollars in thousands) Sep 30, 2015
Sep 30, 2014 Year over Year
Allowance for
loan and lease losses:
Balance beginning of period $ 116,167 $ 95,085 Provision for
loan and lease losses 32,044 35,000 (8 )% Charge-offs (28,463 )
(21,090 ) 35
%
Recoveries 10,385 6,640 56
%
Net charge-offs
(18,078 ) (14,450 ) 25
%
Total allowance for loan and lease losses 130,133 115,635 13
%
Reserve for unfunded commitments 3,081 4,388
(30 )% Total allowance for credit losses $ 133,214 $
120,023 11
%
Net charge-offs to average loans and leases (annualized)
0.15 % 0.16 % Recoveries to gross charge-offs 36.49 % 31.48 %
Allowance for loan and lease losses to loans and leases 0.79 % 0.76
% Allowance for credit losses to loans and leases 0.81 % 0.79 %
Umpqua Holdings Corporation Selected
Ratios (Unaudited)
Quarter Ended % Change
Sep 30,2015
Jun 30,2015
Mar 31,2015
Dec 31,2014
Sep 30,2014
Seq.Quarter
YearoverYear
Average
Rates:
Yield on loans and leases 5.30 % 5.48 % 5.61 % 5.82 %
5.78 % (0.18 ) (0.48 ) Yield on loans held for sale 4.07 % 3.24 %
3.95 % 4.01 % 3.86 % 0.83 0.21 Yield on taxable investments 2.07 %
1.99 % 2.10 % 2.16 % 2.12 % 0.08 (0.05 ) Yield on tax-exempt
investments (1) 5.12 % 5.07 % 5.10 % 5.09 % 5.12 % 0.05 — Yield on
interest bearing cash and temporary investments 0.25 % 0.26 % 0.25
% 0.25 % 0.25 % (0.01 ) — Total yield on earning assets (1) 4.72 %
4.79 % 4.82 % 4.98 % 5.04 % (0.07 ) (0.32 ) Cost of interest
bearing deposits 0.24 % 0.24 % 0.24 % 0.23 % 0.22 % — 0.02
Cost of securities sold under agreements
to repurchase and fed funds purchased
0.05 % 0.05 % 0.06 % 0.06 % 0.07 % — (0.02 ) Cost of term debt 1.62
% 1.51 % 1.42 % 1.41 % 1.35 % 0.11 0.27 Cost of junior subordinated
debentures 3.89 % 3.88 % 3.86 % 3.86 % 3.87 % 0.01 0.02 Total cost
of interest bearing liabilities 0.42 % 0.41 % 0.41 % 0.41 % 0.40 %
0.01 0.02 Net interest spread (1) 4.30 % 4.38 % 4.41 % 4.57
% 4.64 % (0.08 ) (0.34 ) Net interest margin – Consolidated (1)
4.43 % 4.50 % 4.53 % 4.69 % 4.75 % (0.07 ) (0.32 ) Net interest
margin – Bank (1) 4.50 % 4.56 % 4.59 % 4.75 % 4.82 % (0.06 ) (0.32
)
As reported
(GAAP):
Return on average assets 0.99 % 0.96 % 0.84 % 0.92 % 1.05 % 0.03
(0.06 ) Return on average tangible assets 1.08 % 1.05 % 0.92 % 1.00
% 1.14 % 0.03 (0.06 ) Return on average common equity 5.98 % 5.77 %
5.02 % 5.59 % 6.28 % 0.21 (0.30 ) Return on average tangible common
equity 11.52 % 11.18 % 9.76 % 11.08 % 12.46 % 0.34 (0.94 )
Efficiency ratio – Consolidated 64.91 % 67.32 % 68.74 % 68.23 %
63.10 % (2.41 ) 1.81 Efficiency ratio – Bank 62.99 % 65.71 % 67.09
% 66.23 % 61.63 % (2.72 ) 1.36
Operating basis
(non-GAAP): (2)
Return on average assets 1.07 % 1.21 % 1.01 % 1.04 % 1.16 % (0.14 )
(0.09 ) Return on average tangible assets 1.17 % 1.32 % 1.10 % 1.13
% 1.26 % (0.15 ) (0.09 ) Return on average common equity 6.45 %
7.25 % 6.03 % 6.34 % 6.94 % (0.80 ) (0.49 ) Return on average
tangible common equity 12.43 % 14.05 % 11.71 % 12.56 % 13.78 %
(1.62 ) (1.35 ) Efficiency ratio – Consolidated 62.43 % 59.74 %
63.38 % 64.23 % 59.79 % 2.69 2.64 Efficiency ratio – Bank 61.05 %
58.46 % 62.09 % 62.61 % 58.65 % 2.59 2.40
(1) Tax exempt interest has been adjusted to a taxable
equivalent basis using a 35% tax rate.(2) Operating earnings is
calculated as earnings available to common shareholders excluding
gain (loss) on junior subordinated debentures carried at fair
value, net of tax, bargain purchase gain on acquisitions, net of
tax, goodwill impairment, and merger related expenses, net of
tax.
Umpqua Holdings Corporation Selected Ratios
(Unaudited) Nine Months Ended %
Change Sep 30, 2015 Sep 30, 2014
Year overYear
Average
Rates:
Yield on loans and leases 5.46 % 5.81 % (0.35 ) Yield on
loans held for sale 3.73 % 4.07 % (0.34 ) Yield on taxable
investments 2.05 % 2.25 % (0.20 ) Yield on tax-exempt investments
(1) 5.10 % 5.25 % (0.15 ) Yield on interest bearing cash and
temporary investments 0.25 % 0.25 % — Total yield on earning assets
(1) 4.78 % 5.04 % (0.26 ) Cost of interest bearing deposits
0.24 % 0.23 % 0.01
Cost of securities sold under agreements
to repurchase and fed funds purchased
0.06 % 0.13 % (0.07 ) Cost of term debt 1.51 % 1.64 % (0.13 ) Cost
of junior subordinated debentures 3.88 % 3.91 % (0.03 ) Total cost
of interest bearing liabilities 0.41 % 0.41 % — Net interest
spread (1) 4.37 % 4.63 % (0.26 ) Net interest margin – Consolidated
(1) 4.48 % 4.74 % (0.26 ) Net interest margin – Bank (1) 4.55 %
4.81 % (0.26 )
As reported
(GAAP):
Return on average assets 0.93 % 0.70 % 0.23 Return on average
tangible assets 1.02 % 0.76 % 0.26 Return on average common equity
5.59 % 4.31 % 1.28 Return on average tangible common equity 10.83 %
8.37 % 2.46 Efficiency ratio – Consolidated 67.00 % 72.47 % (5.47 )
Efficiency ratio – Bank 65.27 % 70.86 % (5.59 )
Operating basis
(non-GAAP): (2)
Return on average assets 1.10 % 1.06 % 0.04 Return on average
tangible assets 1.19 % 1.15 % 0.04 Return on average common equity
6.58 % 6.51 % 0.07 Return on average tangible common equity 12.73 %
12.65 % 0.08 Efficiency ratio – Consolidated 61.80 % 61.55 % 0.25
Efficiency ratio – Bank 60.49 % 60.26 % 0.23
(1) Tax exempt interest has been adjusted to a taxable
equivalent basis using a 35% tax rate.(2) Operating earnings is
calculated as earnings available to common shareholders excluding
gain (loss) on junior subordinated debentures carried at fair
value, net of tax, bargain purchase gain on acquisitions, net of
tax, goodwill impairment, and merger related expenses, net of
tax.
Umpqua Holdings Corporation
Average Balances
(Unaudited) Quarter Ended %
Change (Dollars in thousands)
Sep 30,2015
Jun 30,2015
Mar 31,2015
Dec 31,2014
Sep 30,2014
Seq.Quarter
YearoverYear
Temporary investments & interest bearing cash $ 693,114
$ 861,775 $ 1,323,671 $ 1,368,726 $ 849,399
(20 )% (18 )% Investment securities, taxable 2,272,676 2,300,123
2,222,174 2,169,504 2,307,732 (1 )% (2 )% Investment securities,
tax-exempt 311,984 317,655 323,852 326,858 330,902 (2 )% (6 )%
Loans held for sale 357,905 368,112 262,777 255,830 274,834 (3 )%
30
%
Loans and leases 16,155,792 15,731,298 15,334,555
15,300,425 15,200,893 3
%
6
%
Total interest earning assets 19,791,471 19,578,963 19,467,029
19,421,343 18,963,760 1
%
4
%
Goodwill & other intangible assets, net 1,838,740 1,841,535
1,842,390 1,844,084 1,841,668 0
%
0
%
Total assets 22,943,563 22,777,421 22,687,515 22,625,461 22,220,999
1
%
3
%
Non-interest bearing demand deposits 5,109,047 4,852,989
4,808,062 4,836,517 4,558,672 5
%
12
%
Interest bearing deposits 12,225,691 12,274,814
12,187,132 12,153,481 11,948,731
0
%
2
%
Total deposits 17,334,738 17,127,803 16,995,194 16,989,998
16,507,403 1
%
5
%
Interest bearing liabilities 13,798,350 13,880,474 13,838,515
13,833,126 13,681,205 (1 )% 1
%
Shareholders’ equity - common 3,819,303 3,803,634 3,797,108
3,721,003 3,712,813 0
%
3
%
Tangible common equity (1) 1,980,563 1,962,099 1,954,718 1,876,919
1,871,145 1
%
6
%
Umpqua Holdings Corporation
Average Balances
(Unaudited) Nine Months Ended % Change
(Dollars in thousands) Sep 30, 2015 Sep 30,
2014 Year over Year Temporary investments & interest
bearing cash $ 957,210 $ 743,179 29% Investment securities, taxable
2,265,175 2,040,394 11% Investment securities, tax-exempt 317,787
293,000 8% Loans held for sale 329,946 188,646 75% Loans and leases
15,743,558 12,229,795 29% Total interest earning
assets 19,613,676 15,495,014 27% Goodwill & other intangible
assets, net 1,840,875 1,428,705 29% Total assets 22,803,723
18,004,316 27% Non-interest bearing demand deposits
4,924,464 3,653,158 35% Interest bearing deposits 12,229,354
9,883,824 24% Total deposits 17,153,818 13,536,982 27%
Interest bearing liabilities 13,838,966 11,216,190 23%
Shareholders’ equity - common 3,806,719 2,941,341 29% Tangible
common equity (1) 1,965,844 1,512,636 30%
(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
Residential Mortgage Banking
Activity
(unaudited) Quarter Ended %
Change (Dollars in thousands) Sep 30, 2015
Jun 30, 2015 Mar 31, 2015 Dec 31,
2014 Sep 30, 2014
Seq.Quarter
Year overYear
Residential
mortgage servicing rights:
Residential mortgage loans serviced for
others $ 12,693,451 $ 12,302,866 $ 11,874,910 $ 11,590,310 $
11,300,947 3
%
12
%
MSR asset, at fair value 124,814 127,206 116,365 117,259 118,725 (2
)% 5
%
MSR as % of serviced portfolio 0.98 % 1.03 % 0.98 % 1.01 % 1.05 %
Residential
mortgage banking revenue:
Origination and sale $ 26,904 $ 33,667 $ 31,498 $ 18,378 $ 24,097
(20 )% 12
%
Servicing 7,240 6,770 6,457 6,306 6,178 7
%
17
%
Change in fair value of MSR asset (10,103 ) (423 )
(9,728 ) (8,195 ) (4,279 ) nm 136
%
Total $ 24,041 $ 40,014 $ 28,227
$ 16,489 $ 25,996 (40 )% (8 )%
Closed loan
volume:
Closed loan volume - portfolio $ 446,088 $ 446,712 $ 311,149 $
319,779 $ 292,154 0
%
53
%
Closed loan volume - for-sale 843,720 997,225
862,155 622,133 695,877
(15 )% 21
%
Closed loan volume - total $ 1,289,808 $ 1,443,937
$ 1,173,304 $ 941,912 $
988,031 (11 )% 31
%
Gain on sale
margin:
Based on for-sale volume 3.19 % 3.38 % 3.65 % 2.95 % 3.46 % (0.19 )
(0.27 )
Nine Months Ended % Change Sep 30,
2015 Sep 30, 2014
Year overYear
Residential
mortgage banking revenue:
Origination and sale $ 92,069 $ 54,660 68 % Servicing 20,467 14,508
41 % Change in fair value of MSR asset (20,254 ) (8,392 )
141 % Total $ 92,282 $ 60,776 52 %
Closed loan
volume:
Closed loan volume - portfolio $ 1,203,949 $ 652,202 85 % Closed
loan volume - for-sale 2,703,100 1,523,959 77 %
Closed loan volume - total $ 3,907,049 $ 2,176,161 80
%
Gain on sale
margin:
Based on for-sale volume 3.41 % 3.59 % (0.18 ) nm = not
meaningful
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151021006485/en/
Umpqua Holdings CorporationRon Farnsworth, 503-727-4108EVP/Chief
Financial Officerronfarnsworth@umpquabank.comBradley Howes,
503-727-4226SVP/Director of Investor
Relationsbradhowes@umpquabank.com
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