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Umpqua Reports Quarterly and Annual Results

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·48 min read
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Fourth quarter 2020 net income of $150.7 million, or $0.68 per diluted common share

Full-year 2020 net loss of $1.5 billion, or $6.92 per diluted common share

Annual loan and lease growth of 3% and deposit growth of 10%

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

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

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

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

  • $12.1 million increase in compensation and benefits primarily due to the year end true up for performance based variable incentives and deferred compensation calculations compared to the prior quarter.

  • $6.5 million in one time software impairment charges primarily due to technology contract exits completed during the quarter.

  • $2.9 million in charitable contributions made in the quarter compared to $0.5 million in the prior quarter.

  • $9.4 million loss on the fair value of the mortgage servicing rights (MSR) asset due to higher prepayment speeds versus modeled expectations compared to a $12.2 million loss in the prior quarter and a $5.1 million loss in the same period of the prior year.

  • $4.0 million gain on the fair value of the debt capital market swap derivatives attributable to the increase in long-term interest rates during the quarter. This compares to the $1.8 million gain in the prior quarter and the $5.0 million gain in the same period of the prior year.

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

  • Gross loan and lease balance growth of $583.7 million, or 3%;

  • Deposit balance growth of $2.1 billion, or 10%;

  • Net interest income decreased by $38.1 million, driven primarily by a decrease in short and long-term interest rates during the annual period which led to a decline in net interest margin;

  • Provision for credit losses increased by $132.3 million primarily due to the implementation of the Current Expected Credit Loss (CECL) accounting standard which uses credit models to forecast future credit losses and fully reserve for the forecasted losses as soon as weak or deteriorating economic conditions are forecasted;

  • Non-interest income increased by $72.2 million, driven primarily by a significant increase in net mortgage banking revenue;

  • Non-interest expense increased by $1.8 billion, driven by the $1.8 billion goodwill impairment that was recorded in the first quarter and higher salaries and employee benefits expense due to the significant increase in annual net mortgage banking revenue, partially offset by lower occupancy, communications, marketing, services, and other expenses;

  • Paid dividends of $0.84 per common share (equal to the $0.84 per share in the prior year) and repurchased 331,000 shares of common stock; and

  • Book value decreased by 37%, or $7.31 per common share due to the aforementioned goodwill impairment, and tangible book value1 increased by 7%, or $0.82 per common share.

Fourth Quarter 2020 Highlights (compared to prior quarter):

  • Gross loan and lease balances decreased by $647.1 million, or 3%, partially due to processed PPP loan forgiveness, the transfer of $78.1 million in indirect auto loans to loans held for sale, and payoffs in residential real estate.

  • Deposit balances decreased by $47.6 million or 0.2%, partially due to the decline in brokered and personal certificates of deposits, partially offset by balance growth in non-interest bearing demand, interest bearing demand, money market, and savings products;

  • Net interest income increased by $18.3 million, attributable to the acceleration of PPP fees due to processed borrower forgiveness and lower costs of interest-bearing deposits;

  • Provision for credit losses increased by $0.4 million, driven by the continued stabilization of credit quality metrics and economic forecasts used in credit models;

  • Net charge-offs increased by 11 basis points to 0.35% of average loans and leases (annualized) primarily due to the previously disclosed leases within the FinPac portfolio that received applicable CARES Act relief and were not able to resume payments after the deferral period expired;

  • Non-interest income decreased by $8.0 million reflecting the linked quarter decline in net mortgage banking revenue, partially offset by an increase in the gain on sale of Small Business Association (SBA) loans during the period;

  • Non-interest expense increased by $21.1 million, primarily driven by a $12.1 million increase in compensation and benefits due to the year end true up of performance based variable incentives and deferred compensation calculations, $6.5 million in one time software impairment charges, and a $2.4 million increase in charitable contributions, partially offset by lower service expense;

  • Non-performing assets to total assets decreased three basis points to 0.24%;

  • Estimated total risk-based capital ratio of 15.6% and estimated Tier 1 common to risk weighted assets ratio of 12.3%; and

  • Paid a quarterly cash dividend of $0.21 per common share on November 30, 2020, to shareholders of record as of November 20, 2020.

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

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

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

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

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

Credit Quality
The allowance for credit losses was $348.7 million, or 1.60% of loans and leases, as of December 31, 2020, which was down from $369.4 million, or 1.65% of loans and leases, as of September 30, 2020. The provision for credit losses was $29,000 for the fourth quarter of 2020, an increase of $367,000 from the prior quarter level primarily due to changes in portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models.

Net charge-offs as a percentage of average loans and leases increased by 11 basis points from the prior quarter to 0.35% of average loans and leases for the fourth quarter of 2020 (annualized). The increase in net charge-offs for the quarter was primarily due to the previously disclosed leases within the FinPac portfolio that received applicable CARES Act relief and were not able to resume payments after the deferral period expired. As of December 31, 2020, non-performing assets was 0.24% of total assets, compared to 0.27% as of September 30, 2020 and 0.23% as of December 31, 2019.

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

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

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

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

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

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

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

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

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

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

(Dollars in thousands, except per share data)


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019

Total shareholders' equity


$

2,704,577



$

2,610,244



$

2,538,339



$

2,507,611



$

4,313,915


Subtract:











Goodwill


2,715



2,715



2,715



2,715



1,787,651


Other intangible assets, net


13,360



14,606



15,853



17,099



18,346


Tangible common shareholders' equity


$

2,688,502



$

2,592,923



$

2,519,771



$

2,487,797



$

2,507,918


Total assets


$

29,235,175



$

29,437,441



$

29,645,248



$

27,540,382



$

28,846,809


Subtract:











Goodwill


2,715



2,715



2,715



2,715



1,787,651


Other intangible assets, net


13,360



14,606



15,853



17,099



18,346


Tangible assets


$

29,219,100



$

29,420,120



$

29,626,680



$

27,520,568



$

27,040,812


Common shares outstanding at period end


220,226



220,222



220,219



220,175



220,229













Total shareholders' equity to total assets ratio


9.25

%


8.87

%


8.56

%


9.11

%


14.95

%

Tangible common equity ratio


9.20

%


8.81

%


8.51

%


9.04

%


9.27

%

Book value per common share


$

12.28



$

11.85



$

11.53



$

11.39



$

19.59


Tangible book value per common share


$

12.21



$

11.77



$

11.44



$

11.30



$

11.39


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

Earnings Conference Call Information
The Company will host its fourth quarter 2020 earnings conference call on Thursday, January 21, 2021, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its fourth quarter and full year 2020 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 7096769. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 7096769. The earnings conference call will also be available as an audiocast, which can be accessed on the Company's investor relations page at www.umpquabank.com.

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

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)














Quarter Ended


% Change

(In thousands, except per share data)


Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


Seq.
Quarter


Year
over
Year

Interest income:















Loans and leases


$

240,815



$

229,457



$

235,174



$

245,993



$

262,109



5

%


(8)

%

Interest and dividends on investments:















Taxable


11,951



10,168



9,015



16,605



13,361



18

%


(11)

%

Exempt from federal income tax


1,523



1,490



1,520



1,562



1,638



2

%


(7)

%

Dividends


659



710



568



678



579



(7)

%


14

%

Temporary investments and interest bearing deposits


531



474



403



3,331



4,343



12

%


(88)

%

Total interest income


255,479



242,299



246,680



268,169



282,030



5

%


(9)

%

Interest expense:















Deposits


14,567



19,121



26,222



40,290



44,380



(24)

%


(67)

%

Securities sold under agreement to repurchase and federal funds purchased


93



84



194



395



431



11

%


(78)

%

Borrowings


2,765



3,271



3,839



4,046



5,080



(15)

%


(46)

%

Junior subordinated debentures


3,147



3,249



3,922



4,903



5,325



(3)

%


(41)

%

Total interest expense


20,572



25,725



34,177



49,634



55,216



(20)

%


(63)

%

Net interest income


234,907



216,574



212,503



218,535



226,814



8

%


4

%

Provision (recapture) for credit losses


29



(338)



87,085



118,085



16,252



(109)

%


(100)

%

Non-interest income:















Service charges on deposits


16,654



14,438



11,831



15,638



16,656



15

%


0

%

Brokerage revenue


4,093



3,686



3,805



4,015



4,027



11

%


2

%

Residential mortgage banking revenue, net


79,028



90,377



83,877



17,540



34,050



(13)

%


132

%

Gain (loss) on sale of debt securities, net






323



(133)



2



0

%


(100)

%

(Loss) gain on equity securities, net


(173)



(112)



240



814



(84)



54

%


106

%

Gain on loan and lease sales, net


3,374



1,092



1,074



1,167



4,603



209

%


(27)

%

BOLI income


2,067



2,087



2,116



2,129



2,078



(1)

%


(1)

%

Other income (expense)


18,917



20,356



12,214



(525)



22,417



(7)

%


(16)

%

Total non-interest income


123,960



131,924



115,480



40,645



83,749



(6)

%


48

%

Non-interest expense:















Salaries and employee benefits


132,460



120,337



116,676



109,774



108,847



10

%


22

%

Occupancy and equipment, net


41,758



36,720



36,171



37,001



36,513



14

%


14

%

Intangible amortization


1,246



1,247



1,246



1,247



1,404



0

%


(11)

%

FDIC assessments


3,014



2,989



3,971



2,542



2,867



1

%


5

%

Goodwill impairment








1,784,936





nm



nm


Other expenses


32,834



28,914



23,846



27,158



33,812



14

%


(3)

%

Total non-interest expense


211,312



190,207



181,910



1,962,658



183,443



11

%


15

%

Income (loss) before provision for income taxes


147,526



158,629



58,988



(1,821,563)



110,868



(7)

%


33

%

(Benefit) provision for income taxes


(3,204)



33,758



6,062



30,384



27,118



(109)

%


(112)

%

Net income (loss)


$

150,730



$

124,871



$

52,926



$

(1,851,947)



$

83,750



21

%


80

%
















Weighted average basic shares outstanding


220,225



220,221



220,210



220,216



220,222



0

%


0

%

Weighted average diluted shares outstanding


220,663



220,418



220,320



220,216



220,671



0

%


0

%

Earnings per common share – basic


$

0.68



$

0.57



$

0.24



$

(8.41)



$

0.38



19

%


79

%

Earnings per common share – diluted


$

0.68



$

0.57



$

0.24



$

(8.41)



$

0.38



19

%


79

%
















nm = not meaningful















Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)








Year Ended


% Change

(In thousands, except per share data)


Dec 31, 2020


Dec 31, 2019


Year over
Year

Interest income:







Loans and leases


$

951,439



$

1,051,077



(9)

%

Interest and dividends on investments:







Taxable


47,739



56,150



(15)

%

Exempt from federal income tax


6,095



7,400



(18)

%

Dividends


2,615



2,269



15

%

Temporary investments and interest bearing deposits


4,739



14,180



(67)

%

Total interest income


1,012,627



1,131,076



(10)

%

Interest expense:







Deposits


100,200



167,941



(40)

%

Securities sold under agreement to repurchase and federal funds purchased


766



2,092



(63)

%

Borrowings


13,921



17,564



(21)

%

Junior subordinated debentures


15,221



22,845



(33)

%

Total interest expense


130,108



210,442



(38)

%

Net interest income


882,519



920,634



(4)

%

Provision for credit losses


204,861



72,515



183

%

Non-interest income:







Service charges on deposits


58,561



64,514



(9)

%

Brokerage revenue


15,599



15,877



(2)

%

Residential mortgage banking revenue, net


270,822



101,810



166

%

Gain (loss) on sale of debt securities, net


190



(7,184)



(103)

%

Gain on equity securities, net


769



83,475



(99)

%

Gain on loan and lease sales, net


6,707



10,467



(36)

%

BOLI income


8,399



8,406



0

%

Other income


50,962



62,459



(18)

%

Total non-interest income


412,009



339,824



21

%

Non-interest expense:







Salaries and employee benefits


479,247



420,373



14

%

Occupancy and equipment, net


151,650



144,236



5

%

Intangible amortization


4,986



5,618



(11)

%

FDIC assessments


12,516



11,233



11

%

Goodwill impairment


1,784,936





nm


Other expenses


112,752



137,580



(18)

%

Total non-interest expense


2,546,087



719,040



254

%

(Loss) income before provision for income taxes


(1,456,420)



468,903



(411)

%

Provision for income taxes


67,000



114,808



(42)

%

Net (loss) income


$

(1,523,420)



$

354,095



(530)

%








Weighted average basic shares outstanding


220,218



220,339



0

%

Weighted average diluted shares outstanding


220,218



220,650



0

%

Earnings per common share – basic


$

(6.92)



$

1.61



(530)

%

Earnings per common share – diluted


$

(6.92)



$

1.60



(533)

%








nm = not meaningful







Umpqua Holdings Corporation
Consolidated Balance Sheets

(Unaudited)
























% Change

(In thousands, except per share data)

Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Seq.
Quarter


Year
over
Year

Assets:














Cash and due from banks

$

370,219



$

370,595



$

410,769



$

406,426



$

382,598



0

%


(3)

%

Interest bearing cash and temporary investments

2,202,962



1,849,132



1,853,505



1,251,290



980,158



19

%


125

%

Investment securities:














Equity and other, at fair value

83,077



82,769



81,958



80,797



80,165



0

%


4

%

Available for sale, at fair value

2,932,558



2,898,700



2,865,690



2,890,475



2,814,682



1

%


4

%

Held to maturity, at amortized cost

3,034



3,088



3,143



3,200



3,260



(2)

%


(7)

%

Loans held for sale, at fair value

766,225



683,960



605,399



481,541



513,431



12

%


49

%

Loans and leases

21,779,367



22,426,473



22,671,455



21,251,478



21,195,684



(3)

%


3

%

Allowance for credit losses on loans and leases

(328,401)



(345,049)



(356,745)



(291,420)



(157,629)



(5)

%


108

%

Net loans and leases

21,450,966



22,081,424



22,314,710



20,960,058



21,038,055



(3)

%


2

%

Restricted equity securities

41,666



50,062



54,062



58,062



46,463



(17)

%


(10)

%

Premises and equipment, net

178,050



185,104



192,041



195,390



201,460



(4)

%


(12)

%

Operating lease right-of-use assets

104,937



107,321



111,487



115,485



110,718



(2)

%


(5)

%

Goodwill

2,715



2,715



2,715



2,715



1,787,651



0

%


(100)

%

Other intangible assets, net

13,360



14,606



15,853



17,099



18,346



(9)

%


(27)

%

Residential mortgage servicing rights, at fair value

92,907



93,248



96,356



94,346



115,010



0

%


(19)

%

Bank owned life insurance

323,470



326,120



324,873



322,717



320,611



(1)

%


1

%

Other assets

669,029



688,597



712,687



660,781



434,201



(3)

%


54

%

Total assets

$

29,235,175



$

29,437,441



$

29,645,248



$

27,540,382



$

28,846,809



(1)

%


1

%

Liabilities:














Deposits

$

24,622,201



$

24,669,783



$

24,844,378



$

22,699,375



$

22,481,504



0

%


10

%

Securities sold under agreements to repurchase

375,384



388,028



398,414



346,245



311,308



(3)

%


21

%

Borrowings

771,482



996,520



1,096,559



1,196,597



906,635



(23)

%


(15)

%

Junior subordinated debentures, at fair value

255,217



247,045



232,936



195,521



274,812



3

%


(7)

%

Junior subordinated debentures, at amortized cost

88,268



88,325



88,382



88,439



88,496



0

%


0

%

Operating lease liabilities

113,593



115,790



119,885



123,962



119,429



(2)

%


(5)

%

Deferred tax liability, net

5,441



13,239



21,439



51,061



52,928



(59)

%


(90)

%

Other liabilities

299,012



308,467



304,916



331,571



297,782



(3)

%


0

%

Total liabilities

26,530,598



26,827,197



27,106,909



25,032,771



24,532,894



(1)

%


8

%

Shareholders' equity:














Common stock

3,514,599



3,512,153



3,510,145



3,507,680



3,514,000



0

%


0

%

(Accumulated deficit) retained earnings

(932,767)



(1,036,931)



(1,115,414)



(1,168,340)



770,366



(10)

%


(221)

%

Accumulated other comprehensive income

122,745



135,022



143,608



168,271



29,549



(9)

%


315

%

Total shareholders' equity

2,704,577



2,610,244



2,538,339



2,507,611



4,313,915



4

%


(37)

%

Total liabilities and shareholders' equity

$

29,235,175



$

29,437,441



$

29,645,248



$

27,540,382



$

28,846,809



(1)

%


1

%















Common shares outstanding at period end

220,226



220,222



220,219



220,175



220,229



0

%


0

%

Book value per common share

$

12.28



$

11.85



$

11.53



$

11.39



$

19.59



4

%


(37)

%

Tangible book value per common share

$

12.21



$

11.77



$

11.44



$

11.30



$

11.39



4

%


7

%

Tangible equity - common

$

2,688,502



$

2,592,923



$

2,519,771



$

2,487,797



$

2,507,918



4

%


7

%

Tangible common equity to tangible assets

9.20

%


8.81

%


8.51

%


9.04

%


9.27

%


0.39



(0.07)


Umpqua Holdings Corporation

Loan & Lease Portfolio

(Unaudited)
















(Dollars in thousands)


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


% Change



Amount


Amount


Amount


Amount


Amount


Seq. Quarter


Year over Year

Loans and leases:















Commercial real estate:















Non-owner occupied term, net


$

3,505,802



$

3,533,776



$

3,589,484



$

3,613,420



$

3,545,566



(1)

%


(1)

%

Owner occupied term, net


2,333,945



2,411,098



2,459,954



2,472,187



2,496,088



(3)

%


(6)

%

Multifamily, net


3,349,196



3,389,034



3,466,829



3,464,217



3,514,774



(1)

%


(5)

%

Construction & development, net


828,478



757,462



662,703



667,975



678,740



9

%


22

%

Residential development, net


192,761



163,400



164,180



187,594



189,010



18

%


2

%

Commercial:















Term, net (1)


4,024,467



4,246,229



4,265,092



2,317,573



2,232,817



(5)

%


80

%

Lines of credit & other, net


862,760



894,782



940,443



1,208,051



1,212,393



(4)

%


(29)

%

Leases & equipment finance, net


1,456,630



1,496,650



1,522,369



1,492,762



1,465,489



(3)

%


(1)

%

Residential real estate:















Mortgage, net


3,871,906



4,042,416



4,056,588



4,193,908



4,215,424



(4)

%


(8)

%

Home equity loans & lines, net


1,136,064



1,172,697



1,189,428



1,249,152



1,237,512



(3)

%


(8)

%

Consumer & other, net


217,358



318,929



354,385



384,639



407,871



(32)

%


(47)

%

Total loans, net of deferred fees and costs


$

21,779,367



$

22,426,473



$

22,671,455



$

21,251,478



$

21,195,684



(3)

%


3

%
















(1) The Bank participates in PPP to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include 14,900 PPP loans, totaling $1.8 billion, net of deferred fees and costs as of December 31, 2020.

















Loan and leases mix:















Commercial real estate:















Non-owner occupied term, net


16

%


16

%


16

%


17

%


17

%





Owner occupied term, net


11

%


11

%


11

%


12

%


12

%





Multifamily, net


15

%


15

%


15

%


16

%


16

%





Construction & development, net


4

%


3

%


3

%


3

%


3

%





Residential development, net


1

%


1

%


1

%


1

%


1

%





Commercial:















Term, net


18

%


19

%


19

%


11

%


10

%





Lines of credit & other, net


4

%


4

%


4

%


5

%


6

%





Leases & equipment finance, net


7

%


7

%


7

%


7

%


7

%





Residential real estate:















Mortgage, net


18

%


18

%


18

%


20

%


20

%





Home equity loans & lines, net


5

%


5

%


5

%


6

%


6

%





Consumer & other, net


1

%


1

%


1

%


2

%


2

%





Total


100

%


100

%


100

%


100

%


100

%





Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)
















(Dollars in thousands)


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


% Change



Amount


Amount


Amount


Amount


Amount


Seq. Quarter


Year over Year

Deposits:















Demand, non-interest bearing


$

9,632,773



$

9,475,244



$

9,172,210



$

7,169,907



$

6,913,375



2

%


39

%

Demand, interest bearing


3,051,487



2,931,990



2,813,722



2,482,908



2,524,534



4

%


21

%

Money market


7,173,920



7,160,838



7,262,777



7,082,011



6,930,815



0

%


4

%

Savings


1,912,752



1,848,639



1,730,051



1,486,909



1,471,475



3

%


30

%

Time


2,851,269



3,253,072



3,865,618



4,477,640



4,641,305



(12)

%


(39)

%

Total


$

24,622,201



$

24,669,783



$

24,844,378



$

22,699,375



$

22,481,504



0

%


10

%
















Total core deposits (1)


$

22,705,377



$

22,439,241



$

22,095,314



$

19,434,228



$

19,061,058



1

%


19

%
















Deposit mix:















Demand, non-interest bearing


39

%


38

%


37

%


32

%


31

%





Demand, interest bearing


12

%


12

%


11

%


11

%


11

%





Money market


29

%


29

%


29

%


31

%


31

%





Savings


8

%


8

%


7

%


7

%


6

%





Time


12

%


13

%


16

%


19

%


21

%





Total


100

%


100

%


100

%


100

%


100

%




















Number of open accounts:















Demand, non-interest bearing


420,050



423,658



423,456



416,270



415,254






Demand, interest bearing


72,811



73,812



74,813



75,514



75,900






Money market


58,609



59,083



59,445



59,203



58,888






Savings


160,192



162,234



161,710



159,870



159,948






Time


48,292



52,572



57,501



62,515



62,952






Total


759,954



771,359



776,925



773,372



772,942





















Average balance per account:















Demand, non-interest bearing


$

22.9



$

22.4



$

21.7



$

17.2



$

16.6






Demand, interest bearing


41.9



39.7



37.6



32.9



33.3






Money market


122.4



121.2



122.2



119.6



117.7






Savings


11.9



11.4



10.7



9.3



9.2






Time


59.0



61.9



67.2



71.6



73.7






Total


$

32.4



$

32.0



$

32.0



$

29.4



$

29.1







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

Umpqua Holdings Corporation

Credit Quality – Non-performing Assets

(Unaudited)


Quarter Ended


% Change

(Dollars in thousands)

Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Seq. Quarter


Year over Year

Non-performing assets:














Loans and leases on non-accrual status

$

31,076



$

26,425



$

32,412



$

39,128



$

26,244



18

%


18

%

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

36,361



50,269



39,818



47,185



37,969



(28)

%


(4)

%

Total non-performing loans and leases

67,437



76,694



72,230



86,313



64,213



(12)

%


5

%

Other real estate owned

1,810



2,369



2,578



3,020



3,295



(24)

%


(45)

%

Total non-performing assets

$

69,247



$

79,063



$

74,808



$

89,333



$

67,508



(12)

%


3

%















Performing restructured loans and leases

$

14,991



$

15,819



$

15,032



$

20,541



$

18,576



(5)

%


(19)

%

Loans and leases past due 31-89 days

$

72,047



$

66,155



$

40,583



$

59,962



$

41,882



9

%


72

%

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

0.33

%


0.29

%


0.18

%


0.28

%


0.20

%





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

0.31

%


0.34

%


0.32

%


0.41

%


0.30

%





Non-performing assets to total assets (1)

0.24

%


0.27

%


0.25

%


0.32

%


0.23

%







(1)

Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $20.0 million, $2.6 million, $5.3 million, and $4.3 million at September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively. There were no non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so at December 31, 2020.

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Seq. Quarter


Year over Year

Allowance for credit losses on loans and leases (ACLLL)















Balance, beginning of period


$

345,049



$

356,745



$

291,420



$

157,629



$

156,288



(3)

%


121

%

Impact of adoption of CECL








49,999





nm



nm


Adjusted balance, beginning of period


345,049



356,745



291,420



207,628



156,288



(3)

%


121

%

Provision for credit losses on loans and leases (1)


3,104



1,785



81,484



105,502



16,252



74

%


(81)

%

Charge-offs


(23,942)



(16,646)



(19,453)



(24,455)



(18,734)



44

%


28

%

Recoveries


4,190



3,165



3,294



2,745



3,823



32

%


10

%

Net charge-offs


(19,752)



(13,481)



(16,159)



(21,710)



(14,911)



47

%


32

%

Balance, end of period


$

328,401



$

345,049



$

356,745



$

291,420



$

157,629



(5)

%


108

%

Reserve for unfunded commitments















Balance, beginning of period


$

24,306



$

26,368



$

20,927



$

5,106



$

5,085



(8)

%


378

%

Impact of adoption of CECL








3,238





nm



nm


Adjusted balance, beginning of period


24,306



26,368



20,927



8,344



5,085



(8)

%


378

%

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


(4,020)



(2,062)



5,441



12,583



21



95

%


nm


Balance, end of period


20,286



24,306



26,368



20,927



5,106



(17)

%


297

%

Total Allowance for credit losses (ACL)


$

348,687



$

369,355



$

383,113



$

312,347



$

162,735



(6)

%


114

%
















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


0.35

%


0.24

%


0.29

%


0.41

%


0.28

%





Recoveries to gross charge-offs


17.50

%


19.01

%


16.93

%


11.22

%


20.41

%





ACLLL to loans and leases


1.51

%


1.54

%


1.57

%


1.37

%


0.74

%





ACL to loans and leases


1.60

%


1.65

%


1.69

%


1.47

%


0.77

%





nm = not meaningful

















(1)

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

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Year Ended


% Change

(Dollars in thousands)


Dec 31, 2020


Dec 31, 2019


Year over Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$

157,629



$

144,871



9

%

Impact of adoption of CECL


49,999





nm


Adjusted balance, beginning of period


207,628



144,871



43

%

Provision for credit losses on loans and leases (1)


191,875



72,515



165

%

Charge-offs


(84,496)



(75,705)



12

%

Recoveries


13,394



15,948



(16)

%

Net charge-offs


(71,102)



(59,757)



19

%

Balance, end of period


$

328,401



$

157,629



108

%

Reserve for unfunded commitments







Balance, beginning of period


$

5,106



$

4,523



13

%

Impact of adoption of CECL


3,238





nm


Adjusted balance, beginning of period


8,344



4,523



84

%

Provision for credit losses on unfunded commitments (1)


11,942



583



1,948

%

Balance, end of period


20,286



5,106



297

%

Total Allowance for credit losses (ACL)


$

348,687



$

162,735



114

%








Net charge-offs to average loans and leases


0.32

%


0.29

%



Recoveries to gross charge-offs


15.85

%


21.07

%



nm = not meaningful









(1)

The total provision for credit losses for the year ended December 31, 2020, as disclosed in the consolidated statement of operations includes an additional $1.0 million of provision related to accrued interest on loans deferred due to COVID-19, not included in the table above.

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)


















Quarter Ended


% Change



Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Mar 31,
2020


Dec 31,
2019


Seq.
Quarter


Year
over
Year

Average Rates:















Yield on loans held for sale


3.19

%


3.13

%


3.77

%


4.20

%


4.25

%


0.06



(1.06)


Yield on loans and leases


4.24

%


3.96

%


4.11

%


4.58

%


4.80

%


0.28



(0.56)


Yield on taxable investments


1.77

%


1.56

%


1.38

%


2.50

%


2.05

%


0.21



(0.28)


Yield on tax-exempt investments (1)


3.08

%


3.11

%


3.17

%


3.14

%


3.23

%


(0.03)



(0.15)


Yield on interest bearing cash and temporary investments


0.10

%


0.10

%


0.10

%


1.23

%


1.65

%




(1.55)


Total yield on earning assets (1)


3.64

%


3.45

%


3.59

%


4.19

%


4.36

%


0.19



(0.72)

















Cost of interest bearing deposits


0.38

%


0.49

%


0.67

%


1.03

%


1.13

%


(0.11)



(0.75)


Cost of securities sold under agreements















to repurchase and fed funds purchased


0.09

%


0.09

%


0.21

%


0.47

%


0.56

%




(0.47)


Cost of borrowings


1.18

%


1.23

%


1.33

%


1.79

%


1.96

%


(0.05)



(0.78)


Cost of junior subordinated debentures


3.73

%


4.03

%


5.55

%


5.45

%


5.92

%


(0.30)



(2.19)


Total cost of interest bearing liabilities


0.49

%


0.59

%


0.78

%


1.15

%


1.27

%


(0.10)



(0.78)

















Net interest spread (1)


3.15

%


2.85

%


2.81

%


3.04

%


3.09

%


0.30



0.06


Net interest margin (1)


3.35

%


3.08

%


3.09

%


3.41

%


3.51

%


0.27



(0.16)

















Performance Ratios:















Return on average assets


2.04

%


1.68

%


0.73

%


(25.82)

%


1.15

%


0.36



0.89


Return on average tangible assets


2.04

%


1.68

%


0.73

%


(27.53)

%


1.22

%


0.36



0.82


Return on average common equity


22.92

%


19.48

%


8.46

%


(174.94)

%


7.70

%


3.44



15.22


Return on average tangible common equity


23.07

%


19.62

%


8.53

%


(301.30)

%


13.24

%


3.45



9.83


Efficiency ratio – Consolidated


58.82

%


54.52

%


55.40

%


756.29

%


59.00

%


4.30



(0.18)


Efficiency ratio – Bank


57.77

%


53.41

%


54.17

%


752.92

%


57.56

%


4.36



0.21




(1)

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

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)








Year Ended


% Change



Dec 31, 2020


Dec 31, 2019


Year over Year

Average Rates:







Yield on loans held for sale


3.49

%


4.83

%


(1.34)


Yield on loans and leases


4.22

%


4.96

%


(0.74)


Yield on taxable investments


1.80

%


2.16

%


(0.36)


Yield on tax-exempt investments (1)


3.12

%


3.40

%


(0.28)


Yield on temporary investments and interest bearing cash


0.29

%


2.06

%


(1.77)


Total yield on earning assets (1)


3.71

%


4.56

%


(0.85)









Cost of interest bearing deposits


0.65

%


1.12

%


(0.47)


Cost of securities sold under agreements







to repurchase and fed funds purchased


0.21

%


0.65

%


(0.44)


Cost of borrowings


1.37

%


1.96

%


(0.59)


Cost of junior subordinated debentures


4.67

%


6.12

%


(1.45)


Total cost of interest bearing liabilities


0.75

%


1.26

%


(0.51)









Net interest spread (1)


2.96

%


3.30

%


(0.34)


Net interest margin (1)


3.23

%


3.71

%


(0.48)









Performance Ratios:







Return on average assets


(5.22)

%


1.27

%


(6.49)


Return on average tangible assets


(5.30)

%


1.35

%


(6.65)


Return on average common equity


(51.08)

%


8.42

%


(59.50)


Return on average tangible common equity


(60.34)

%


14.77

%


(75.11)


Efficiency ratio – Consolidated


196.47

%


56.97

%


139.50


Efficiency ratio – Bank


195.33

%


55.40

%


139.93




(1)

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

Umpqua Holdings Corporation
Average Balances

(Unaudited)








Quarter Ended


% Change

(Dollars in thousands)

Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Seq. Quarter


Year over Year

Temporary investments and interest bearing cash

$

2,066,572



$

1,827,818



$

1,563,753



$

1,084,854



$

1,045,975



13

%


98

%

Investment securities, taxable

2,850,550



2,797,547



2,777,154



2,760,461



2,719,089



2

%


5

%

Investment securities, tax-exempt

245,997



237,165



235,934



241,105



244,895



4

%


0

%

Loans held for sale

696,688



669,646



577,773



406,434



415,169



4

%


68

%

Loans and leases

22,138,283



22,560,076



22,428,142



21,196,989



21,379,239



(2)

%


4

%

Total interest earning assets

27,998,090



28,092,252



27,582,756



25,689,843



25,804,367



0

%


9

%

Goodwill and other intangible assets, net

16,775



18,021



19,253



1,785,608



1,806,791



(7)

%


(99)

%

Total assets

29,396,311



29,533,871



29,066,775



28,844,773



28,981,387



0

%


1

%















Non-interest bearing demand deposits

9,587,081



9,335,350



8,484,684



6,880,457



7,037,320



3

%


36

%

Interest bearing deposits

15,165,049



15,451,816



15,803,595



15,695,309



15,550,483



(2)

%


(2)

%

Total deposits

24,752,130



24,787,166



24,288,279



22,575,766



22,587,803



0

%


10

%

Interest bearing liabilities

16,822,808



17,205,775



17,625,888



17,301,712



17,237,770



(2)

%


(2)

%















Shareholders' equity - common

2,615,676



2,549,703



2,514,754



4,257,711



4,317,277



3

%


(39)

%

Tangible common equity (1)

2,598,901



2,531,682



2,495,501



2,472,103



2,510,486



3

%


4

%

Umpqua Holdings Corporation
Average Balances

(Unaudited)



Year Ended

% Change

(Dollars in thousands)


Dec 31, 2020


Dec 31, 2019


Year over Year

Temporary investments and interest bearing cash


$

1,637,440



$

688,258



138

%

Investment securities, taxable


2,796,581



2,701,821



4

%

Investment securities, tax-exempt


240,054



264,017



(9)

%

Loans held for sale


588,058



299,560



96

%

Loans and leases


22,082,359



20,889,769



6

%

Total interest earning assets


27,344,492



24,843,425



10

%

Goodwill and other intangible assets, net


457,550



1,808,879



(75)

%

Total assets


29,211,733



27,971,844



4

%








Non-interest bearing demand deposits


8,576,436



6,746,607



27

%

Interest bearing deposits


15,527,924



15,057,428



3

%

Total deposits


24,104,360



21,804,035



11

%

Interest bearing liabilities


17,237,888



16,647,085



4

%








Shareholders' equity - common


2,982,458



4,206,380



(29)

%

Tangible common equity (1)


2,524,908



2,397,501



5

%



(1)

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

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)

(dollars in thousands)

Quarter Ended


December 31, 2020


September 30, 2020


December 31, 2019


Average
Balance


Interest Income or Expense


Average Yields or Rates


Average
Balance


Interest Income or Expense


Average Yields or Rates


Average

Balance


Interest Income or Expense


Average Yields or Rates

INTEREST-EARNING ASSETS:


















Loans held for sale

$

696,688



$

5,554



3.19

%


$

669,646



$

5,248



3.13

%


$

415,169



$

4,408



4.25

%

Loans and leases (1)

22,138,283



235,261



4.24

%


22,560,076



224,209



3.96

%


21,379,239



257,701



4.80

%

Taxable securities

2,850,550



12,610



1.77

%


2,797,547



10,878



1.56

%


2,719,089



13,940



2.05

%

Non-taxable securities (2)

245,997



1,893



3.08

%


237,165



1,845



3.11

%


244,895



1,980



3.23

%

Temporary investments and interest-bearing cash

2,066,572



531



0.10

%


1,827,818



474



0.10

%


1,045,975



4,343



1.65

%

Total interest-earning assets

27,998,090



$

255,849



3.64

%


28,092,252



$

242,654



3.45

%


25,804,367



$

282,372



4.36

%

Other assets

1,398,221







1,441,619







3,177,020






Total assets

$

29,396,311







$

29,533,871







$

28,981,387






INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$

3,014,292



$

448



0.06

%


$

2,878,529



$

573



0.08

%


$

2,446,137



$

3,485



0.57

%

Money market deposits

7,210,906



1,731



0.10

%


7,179,705



2,284



0.13

%


6,853,118



13,690



0.79

%

Savings deposits

1,882,866



183



0.04

%


1,790,055



179



0.04

%


1,463,744



509



0.14

%

Time deposits

3,056,985



12,205



1.59

%


3,603,527



16,085



1.78

%


4,787,484



26,696



2.21

%

Total interest-bearing deposits

15,165,049



14,567



0.38

%


15,451,816



19,121



0.49

%


15,550,483



44,380



1.13

%

Repurchase agreements and federal funds purchased

388,361



93



0.09

%


378,844



84



0.09

%


303,230



431



0.56

%

Borrowings

934,006



2,765



1.18

%


1,054,153



3,271



1.23

%


1,027,311



5,080



1.96

%

Junior subordinated debentures

335,392



3,147



3.73

%


320,962



3,249



4.03

%


356,746



5,325



5.92

%

Total interest-bearing liabilities

16,822,808



$

20,572



0.49

%


17,205,775



$

25,725



0.59

%


17,237,770



$

55,216



1.27

%

Non-interest-bearing deposits

9,587,081







9,335,350







7,037,320






Other liabilities

370,746







443,043







389,020






Total liabilities

26,780,635







26,984,168







24,664,110






Common equity

2,615,676







2,549,703







4,317,277






Total liabilities and shareholders' equity

$

29,396,311







$

29,533,871







$

28,981,387






NET INTEREST INCOME



$

235,277







$

216,929







$

227,156




NET INTEREST SPREAD





3.15

%






2.85

%






3.09

%

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





3.35

%






3.08

%






3.51

%



(1)

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



(2)

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $370,000 for the three months ended December 31, 2020 as compared to $355,000 for September 30, 2020 and $342,000 for December 31, 2019.

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)

(dollars in thousands)

Year Ended


December 31, 2020


December 31, 2019


Average
Balance


Interest
Income or Expense


Average Yields or Rates


Average
Balance


Interest
Income or Expense


Average Yields or Rates

INTEREST-EARNING ASSETS:












Loans held for sale

$

588,058



$

20,509



3.49

%


$

299,560



$

14,477



4.83

%

Loans and leases (1)

22,082,359



930,930



4.22

%


20,889,769



1,036,600



4.96

%

Taxable securities

2,796,581



50,354



1.80

%


2,701,821



58,419



2.16

%

Non-taxable securities (2)

240,054



7,500



3.12

%


264,017



8,971



3.40

%

Temporary investments and interest-bearing cash

1,637,440



4,739



0.29

%


688,258



14,180



2.06

%

Total interest-earning assets

27,344,492



$

1,014,032



3.71

%


24,843,425



$

1,132,647



4.56

%

Other assets

1,867,241







3,128,419






Total assets

$

29,211,733







$

27,971,844






INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$

2,754,417



$

5,712



0.21

%


$

2,365,845



$

12,040



0.51

%

Money market deposits

7,193,470



19,811



0.28

%


6,740,502



56,633



0.84

%

Savings deposits

1,697,353



801



0.05

%


1,467,263



1,746



0.12

%

Time deposits

3,882,684



73,876



1.90

%


4,483,818



97,522



2.17

%

Total interest-bearing deposits

15,527,924



100,200



0.65

%


15,057,428



167,941



1.12

%

Repurchase agreements and federal funds purchased

370,091



766



0.21

%


319,723



2,092



0.65

%

Borrowings

1,014,240



13,921



1.37

%


896,681



17,564



1.96

%

Junior subordinated debentures

325,633



15,221



4.67

%


373,253



22,845



6.12

%

Total interest-bearing liabilities

17,237,888



$

130,108



0.75

%


16,647,085



$

210,442



1.26

%

Non-interest-bearing deposits

8,576,436







6,746,607






Other liabilities

414,951







371,772






Total liabilities

26,229,275







23,765,464






Common equity

2,982,458







4,206,380






Total liabilities and shareholders' equity

$

29,211,733







$

27,971,844






NET INTEREST INCOME



$

883,924







$

922,205




NET INTEREST SPREAD





2.96

%






3.30

%

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





3.23

%






3.71

%



(1)

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



(2)

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $1.4 million for the twelve months ended December 31, 2020 as compared to $1.6 million for the same period in 2019.

Umpqua Holdings Corporation
Residential Mortgage Banking Activity

(Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Mar 31, 2020


Dec 31, 2019


Seq. Quarter


Year
over Year

Residential mortgage banking revenue:















Origination and sale


$

83,388



$

98,703



$

86,781



$

39,347



$

35,438



(16)

%


135

%

Servicing


9,497



8,796



8,533



8,880



8,981



8

%


6

%

Change in fair value of MSR asset:















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


(4,431)



(4,878)



(5,042)



(5,329)



(5,237)



(9)

%


(15)

%

Changes due to valuation inputs or assumptions


(9,426)



(12,244)



(6,395)



(25,358)



(5,132)



(23)

%


84

%

Total


$

79,028



$

90,377



$

83,877



$

17,540



$

34,050



(13)

%


132

%
















Closed loan volume:















Portfolio


$

304,162



$

245,550



$

276,247



$

252,329



$

335,511



24

%


(9)

%

For-sale


1,769,432



1,922,789



1,826,095



1,148,184



1,060,016



(8)

%


67

%

Total


$

2,073,594



$

2,168,339



$

2,102,342



$

1,400,513



$

1,395,527



(4)

%


49

%
















Gain on sale margin:















Based on for-sale volume


4.71

%


5.13

%


4.75

%


3.43

%


3.34

%


(0.42)



1.37

















Residential mortgage servicing rights:















Balance, beginning of period


$

93,248



$

96,356



$

94,346



$

115,010



$

151,383



(3)

%


(38)

%

Additions for new MSR capitalized


13,516



14,014



13,447



10,023



8,397



(4)

%


61

%

Sale of MSR assets










(34,401)



0

%


(100)

%

Changes in fair value of MSR asset:















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


(4,431)



(4,878)



(5,042)



(5,329)



(5,237)



(9)

%


(15)

%

Changes due to valuation inputs or assumptions


(9,426)



(12,244)



(6,395)



(25,358)



(5,132)



(23)

%


84

%

Balance, end of period


$

92,907



$

93,248



$

96,356



$

94,346



$

115,010



0

%


(19)

%
















Residential mortgage loans serviced for others


$

13,026,720



$

12,964,361



$

12,746,125



$

12,533,045



$

12,276,943



0

%


6

%

MSR as % of serviced portfolio


0.71

%


0.72

%


0.76

%


0.75

%


0.94

%


(0.01)



(0.23)


















Umpqua Holdings Corporation
Residential Mortgage Banking Activity


(Unaudited)




Year Ended


% Change


(Dollars in thousands)


Dec 31, 2020


Dec 31, 2019


Year over Year


Residential mortgage banking revenue:








Origination and sale


$

308,219



$

104,394



195

%


Servicing


35,706



42,199



(15)

%


Change in fair value of MSR asset:








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


(19,680)



(25,408)



(23)

%


Changes due to valuation inputs or assumptions


(53,423)



(19,375)



176

%


Total


$

270,822



$

101,810



166

%










Closed loan volume:








Portfolio


$

1,078,288



$

1,747,023



(38)

%


For-sale


6,666,500



3,089,698



116

%


Total


$

7,744,788



$

4,836,721



60

%










Gain on sale margin:








Based on for-sale volume


4.62

%


3.38

%


1.24











Residential mortgage servicing rights:








Balance, beginning of period


$

115,010



$

169,025



(32)

%


Additions for new MSR capitalized


51,000



25,169



103

%


Sale of MSR assets




(34,401)



(100)

%


Changes in fair value of MSR asset:








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


(19,680)



(25,408)



(23)

%


Changes due to valuation inputs or assumptions


(53,423)



(19,375)



176

%


Balance, end of period


$

92,907



$

115,010



(19)

%

SOURCE Umpqua Holdings Corporation

Related Links

http://www.umpquabank.com