UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2021 RESULTS

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Fourth quarter 2021 Results - Net income of $88.4 million, or $0.41 per common share - Non-PPP loan balances increased $929.5 million or 4.4% - Deposit balances decreased $313.7 million or 1.2% - Recapture of provision for credit losses of $0.7 million

January 19, 2022 4:15 PM EST

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 SheetTotal 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 IncomeNet 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 QualityThe 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 IncomeNon-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 ExpenseNon-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.

CapitalAs 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 DisclosuresSegment 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 MeasuresIn 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 CorporationUmpqua 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 InformationThe 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 StatementsThis 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

YearoverYear

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 CorporationAverage 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

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/umpqua-reports-fourth-quarter-and-full-year-2021-results-301464222.html

SOURCE Umpqua Holdings Corporation


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