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UNITED STATES
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report: July 19, 2005
(Date of earliest event reported)
Umpqua Holdings Corporation
(Exact Name of Registrant as Specified in Its Charter)
OREGON | 000-25597 | 93-1261319 | ||
(State or Other Jurisdiction of | (Commission File | (I.R.S. Employer | ||
Incorporation or Organization) | Number) | Identification Number) |
One SW Columbia Street, Suite 1200
Portland, Oregon 97258
(address of Principal Executive Offices)(Zip Code)
(503) 727-4100
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR | |
230.425) | ||
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR | |
240.14a-12) | ||
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange | |
Act (17 CFR 240.14d-2(b)) | ||
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange | |
Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On July 20, 2006, Umpqua Holding Corporation issued a press release announcing financial results for the second quarter of 2006. A copy of the press release is attached as Exhibit 99.1.
Item 5.02 | Departure of Directors or Principal Officers; Election of Directors; | |
Appointment of Principal Officers. |
(d) | (1) Effective June 2, 2006, Matthew A. Bruno joined the Umpqua Holdings Corporation Board of Directors. | |
(2) | Not applicable. | |
(3) | On July 19, 2006, Umpqua's Board of Directors ratified the | |
appointment of Matthew A. Bruno to the Umpqua Board's Financial Services Committee and to the Loan and Investment Committee. | ||
(4) | None. | |
Item 9.01 Financial Statements and Exhibits.
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Exhibits. |
99.1 Earnings Press Release | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this reported to be signed on its behalf of the undersigned hereunto duly authorized.
UMPQUA HOLDINGS CORPORATION | ||
(Registrant) | ||
Dated: July 20, 2006 | By: /s/ Kenneth E. Roberts | |
Kenneth E. Roberts | ||
Assistant Secretary |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE | ||
Contacts: | ||
Ray Davis | Dan Sullivan | |
President/CEO | EVP/CFO | |
Umpqua Holdings Corporation | Umpqua Holdings Corporation | |
503-727-4101 | 503-727-4103 | |
raydavis@umpquabank.com | dansullivan@umpquabank.com |
UMPQUA HOLDINGS REPORTS SECOND QUARTER
$0.42 OPERATING EARNINGS PER DILUTED SHARE, A 17% INCREASE
Western Sierra acquisition accretive for quarter
PORTLAND, Ore. - July 20, 2006 - Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York, Inc., today announced second quarter 2006 operating earnings of $20.6 million, or $0.42 per diluted share, compared to $16.1 million, or $0.36 per diluted share, for the second quarter of 2005, an increase of 17% per diluted share. For the year to date, operating earnings were $38.2 million, or $0.81 per diluted share, compared to $31.2 million, or $0.69 per diluted share for the same period a year ago, also an increase of 17% per diluted share. Operating earnings excludes merger related expense, net of tax.
Including merger expense, net income for the second quarter of 2006 was $19.6 million, or $0.40 per diluted share, compared to $16.0 million, or $0.36 per diluted share for the second quarter of 2005. For the year to date, net income was $37.1 million, or $0.79 per diluted share, compared to $31.0 million, or $0.69 per diluted share for the same period of the prior year.
Quarter ended: |
Six months ended: |
|||||||||||||||||||
|
|
|||||||||||||||||||
(Dollars in thousands, except | ||||||||||||||||||||
per share data) |
6/30/2006 |
3/31/2006 |
6/30/2005 |
6/30/2006 |
6/30/2005 | |||||||||||||||
|
|
|||||||||||||||||||
Net Income | $ | 19,631 | $ | 17,427 | $ | 16,006 | $ | 37,058 | $ | 31,025 | ||||||||||
Add Back: Merger related | ||||||||||||||||||||
expenses, net of tax | 994 | 151 | 97 | 1,144 | 157 | |||||||||||||||
|
|
|||||||||||||||||||
Operating Earnings |
$ | 20,625 | $ | 17,578 | $ | 16,103 | $ | 38,202 | $ | 31,182 | ||||||||||
|
|
|||||||||||||||||||
Earnings per diluted share: | ||||||||||||||||||||
Net Income | $ | 0.40 | $ | 0.39 | $ | 0.36 | $ | 0.79 | $ | 0.69 | ||||||||||
Operating Earnings |
$ | 0.42 | $ | 0.39 | $ | 0.36 | $ | 0.81 | $ | 0.69 |
The Company completed the acquisition of Western Sierra Bancorp on June 2, 2006, in an all stock exchange valued at approximately $354 million. Approximately 12.7 million shares of common stock were issued in connection with the acquisition. This acquisition was accretive to operating earnings by $0.01 per diluted share during the second quarter, based mainly on accelerated synergy realization. Full system integration was completed successfully over the July 15th weekend.
"With these stores now under the Umpqua brand, all associates immersed in the Umpqua culture, and our marketing efforts now launched in one of the fastest growing markets in the country, we remain well positioned to sustain our organic growth," said Ray Davis, president and chief executive officer of Umpqua Holdings Corporation.
Total consolidated assets as of June 30, 2006 were $7.2 billion, compared to $5.0 billion a year ago. Total gross loans and leases, and deposits, were $5.3 billion and $5.5 billion, respectively, as of June 30, 2006, compared to $3.6 billion and $4.0 billion, respectively, a year ago.
The following table presents the year-to-date annualized organic growth rates, which exclude the effects of the Western Sierra Bancorp acquisition:
(in thousands) |
Loans |
Deposits |
Assets |
|||||||||
|
||||||||||||
As reported, 6/30/06 | $ | 5,309,078 | $ | 5,464,770 | $ | 7,178,392 | ||||||
less: 12/31/05 balances | 3,921,631 | 4,286,266 | 5,360,639 | |||||||||
|
||||||||||||
Total growth year to date | $ | 1,387,447 | $ | 1,178,504 | $ | 1,817,753 | ||||||
less: acquisition | 1,022,231 | 1,016,053 | 1,491,466 | |||||||||
|
||||||||||||
Organic growth | $ | 365,216 | $ | 162,451 | $ | 326,287 | ||||||
|
||||||||||||
Annualized organic growth rate | 19% | 8% | 12% |
During the second quarter of 2006, the Company had net charge-offs of $0.1 million, or 0.01% of average loans and leases on an annualized basis. Non-performing loans and leases were $7.3 million at June 30, 2006, representing only 0.14% of total loans and leases. This represents a decline from 0.19% in non-performing loans and leases on a sequential quarter basis before the acquisition of Western Sierra Bancorp. Based on the quality of the loan portfolio and net recoveries for the year to date, there was no substantial provision for credit losses during the second quarter of 2006, compared to $1.4 million for the same period a year ago. The allowance for credit losses was 1.14% of total loans and leases at June 30, 2006.
Umpqua Bank, Umpqua Holdings' Bank subsidiary, reported a net interest margin of 4.93% for the second quarter of 2006, compared to 4.95% for first quarter of 2006 and 5.05% for the same quarter a year ago. The decline in margin resulted from increases in short-term market interest rates, which led to an increase in deposit and borrowing costs. The yield on earning assets increased 26 basis points on a sequential quarter basis to 7.22%, while the cost of interest bearing liabilities increased 33 basis points to 3.27% .
Excluding merger expense, the Bank efficiency ratio was 51.8% for the second quarter of 2006, compared to 52.7% for the same period a year ago.
As of June 30, 2006, total shareholders' equity was $1.1 billion, and tangible book value per share was $7.46. As previously announced, the Company paid a quarterly cash dividend of $0.12 per share on July 14, 2006.
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 certain risk factors, including those set forth from time to time in Umpqua's and Western Sierra's filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Specific risks in this press release include whether the company can sustain its rate of organic growth.
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. Umpqua believes that
providing non-GAAP financial measures provides investors with information useful in understanding Umpqua's financial performance. Umpqua provides measures based on "operating earnings," which exclude merger-related expenses. Operating earnings per
diluted share is calculated by dividing operating earnings by the same diluted share total used in determining diluted earnings per share.
A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the attached financial tables or where the non-GAAP measure is presented.
About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions.
Umpqua Bank has 127 locations stretching from the greater Sacramento area and San Joaquin Valley to Seattle, Wash., as well as along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage
subsidiary, Strand, Atkinson, Williams & York, Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial
services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit
http://www.umpquaholdingscorp.com.
Umpqua Holdings Corporation will conduct a quarterly earnings conference call Thursday, July 20, 2006, at 10:00 a.m. PST (1:00 p.m. EST) during which the Company will discuss second quarter results and provide an update on recent activities, including the Company's recent acquisition of Western Sierra Bancorp. There will be a question-and-answer session following the presentation. Shareholders, analysts and other interested parties are invited to join the call by dialing 888-577-8991 a few minutes before 10:00 a.m. The password is "UMPQUA." Information to be discussed in the teleconference will be available on the Company's website prior to the call at www.umpquaholdingscorp.com. A rebroadcast can be found approximately one hour after the conference call by dialing 866-415-3311, or by visiting that website.
Umpqua Holdings Corporation | ||||||
Consolidated Statements of Income | ||||||
(Unaudited) | ||||||
Quarter Ended: | ||||||
|
||||||
Dollars in thousands, except per share data | June 30, 2006 | March 31, 2006 | June 30, 2005 | |||
|
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Interest income | ||||||
Loans and leases | $86,004 | $73,120 | $60,220 | |||
Investments - taxable | 6,693 | 6,711 | 6,252 | |||
Investments - tax exempt | 836 | 722 | 699 | |||
Other interest | 354 | 149 | 454 | |||
Dividends | 56 | 44 | 38 | |||
|
||||||
Total interest income |
93,943 | 80,746 | 67,663 | |||
Interest expense | ||||||
Deposits | 25,953 | 21,038 | 13,485 | |||
Repurchase agreements and | ||||||
fed funds purchased |
1,802 | 2,389 | 407 | |||
Trust preferred securities | 3,376 | 3,012 | 2,550 | |||
Other borrowings | 2,055 | 28 | 139 | |||
|
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Total interest expense |
33,186 | 26,467 | 16,581 | |||
Net interest income | 60,757 | 54,279 | 51,082 | |||
Provision for loan losses | 54 | 21 | 1,400 | |||
Non-interest income | ||||||
Service charges | 6,450 | 5,484 | 5,426 | |||
Brokerage fees | 2,534 | 2,368 | 2,879 | |||
Mortgage banking revenue | 2,503 | 1,844 | 228 | |||
Gain (loss) on sale of securities | (1) | -- | 1,398 | |||
Other income | 2,320 | 2,506 | 1,993 | |||
|
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Total non-interest income | 13,806 | 12,202 | 11,924 | |||
Non-interest expense | ||||||
Salaries and benefits | 23,337 | 21,801 | 20,361 | |||
Occupancy and equipment | 7,199 | 7,168 | 6,109 | |||
Other | 11,051 | 9,760 | 9,790 | |||
Merger related expenses | 1,656 | 251 | 161 | |||
|
||||||
Total non-interest expense | 43,243 | 38,980 | 36,421 | |||
Income before income taxes | 31,266 | 27,480 | 25,185 | |||
Provision for income tax | 11,635 | 10,053 | 9,179 | |||
|
||||||
Net income | $19,631 | $17,427 | $16,006 | |||
|
||||||
Weighted average shares outstanding | 48,528,525 | 44,658,423 | 44,436,323 | |||
Weighted average diluted shares outstanding | 48,994,482 | 45,029,063 | 44,988,322 | |||
Earnings per share - Basic | $0.40 | $0.39 | $0.36 | |||
Earnings per share - Diluted | $0.40 | $0.39 | $0.36 |
Umpqua Holdings Corporation | ||||
Consolidated Statements of Income | ||||
(Unaudited) | ||||
Six Months Ended: |
||||
|
||||
Dollars in thousands, except per share data | June 30, 2006 | June 30, 2005 | ||
|
||||
Interest income | ||||
Loans and leases | $159,124 | $117,156 | ||
Investments - taxable | 13,404 | 12,801 | ||
Investments - tax exempt | 1,558 | 1,412 | ||
Other interest | 503 | 687 | ||
Dividends | 100 | 81 | ||
|
||||
Total interest income |
174,689 | 132,137 | ||
Interest expense | ||||
Deposits | 46,991 | 24,809 | ||
Repurchase agreements and | ||||
fed funds purchased |
4,191 | 908 | ||
Trust preferred securities | 6,388 | 4,944 | ||
Other borrowings | 2,083 | 544 | ||
|
||||
Total interest expense |
59,653 | 31,205 | ||
Net interest income | 115,036 | 100,932 | ||
Provision for loan losses | 75 | 2,400 | ||
Non-interest income | ||||
Service charges | 11,934 | 10,248 | ||
Brokerage fees | 4,902 | 6,008 | ||
Mortgage banking revenue | 4,347 | 1,578 | ||
Gain (loss) on sale of securities | (1) | 1,398 | ||
Other income | 4,826 | 3,294 | ||
|
||||
Total non-interest income | 26,008 | 22,526 | ||
Non-interest expense | ||||
Salaries and benefits | 45,138 | 40,640 | ||
Occupancy and equipment | 14,367 | 12,242 | ||
Other | 20,811 | 18,712 | ||
Merger related expenses | 1,907 | 262 | ||
|
||||
Total noninterest expense | 82,223 | 71,856 | ||
Income before income taxes | 58,746 | 49,202 | ||
Provision for income tax | 21,688 | 18,177 | ||
|
||||
Net income | $37,058 | $31,025 | ||
|
||||
Weighted average shares outstanding | 46,604,165 | 44,383,766 | ||
Weighted average diluted shares outstanding | 47,111,951 | 44,972,170 | ||
Earnings per share - Basic | $0.80 | $0.70 | ||
Earnings per share - Diluted | $0.79 | $0.69 |
Umpqua Holdings Corporation | ||||||
Consolidated Balance Sheets | ||||||
(Unaudited) | ||||||
Dollars in thousands, except per share data | June 30, 2006 | March 31, 2006 | June 30, 2005 | |||
|
||||||
Assets: | ||||||
Cash and cash equivalents | $238,964 | $122,470 | $200,748 | |||
Trading account securities | 376 | 372 | 1,403 | |||
Investments available for sale | 692,910 | 648,487 | 571,895 | |||
Investments held to maturity | 9,676 | 7,633 | 11,735 | |||
Loans held for sale | 18,760 | 11,760 | 20,301 | |||
Loans and leases | 5,309,078 | 4,096,194 | 3,612,004 | |||
Less: Allowance for loan losses | (58,516) | (44,546) | (44,510) | |||
|
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Loans and leases, net | 5,250,562 | 4,051,648 | 3,567,494 | |||
Federal Home Loan Bank stock | 20,538 | 14,264 | 14,298 | |||
Premises and equipment, net | 100,040 | 88,857 | 88,321 | |||
Other real estate owned | 69 | 69 | 213 | |||
Mortgage servicing rights, net | 11,550 | 11,203 | 9,268 | |||
Goodwill and other intangibles | 682,789 | 408,156 | 407,072 | |||
Other assets | 152,158 | 110,925 | 145,867 | |||
|
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Total assets | $7,178,392 | $5,475,844 | $5,038,615 | |||
|
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Liabilities: | ||||||
Deposits | $5,464,770 | $4,229,648 | $3,972,920 | |||
Securities sold under agreements | ||||||
to repurchase and fed funds purchased | 261,720 | 272,990 | 127,449 | |||
Borrowings | 57,081 | 3,111 | 13,296 | |||
Notes payable for Trust preferred | ||||||
securities | 204,222 | 165,643 | 165,970 | |||
Other liabilities | 77,499 | 53,670 | 44,243 | |||
|
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Total liabilities | 6,065,292 | 4,725,062 | 4,323,878 | |||
Shareholders' equity: | ||||||
Common stock | 923,309 | 567,369 | 563,582 | |||
Retained earnings | 208,335 | 195,639 | 153,794 | |||
Accumulated other comprehensive loss | (18,544) | (12,226) | (2,639) | |||
|
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Total shareholders' equity | 1,113,100 | 750,782 | 714,737 | |||
|
||||||
Total liabilities and shareholders' equity | $7,178,392 | $5,475,844 | $5,038,615 | |||
|
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Common shares outstanding at period end | 57,651,533 | 44,721,027 | 44,453,407 | |||
Book value per share | $19.31 | $16.79 | $16.08 | |||
Tangible book value per share | $7.46 | $7.66 | $6.92 | |||
Tangible equity | $430,311 | $342,626 | $307,665 |
Umpqua Holdings Corporation | ||||||
Loan Portfolio | ||||||
(Unaudited) | ||||||
Dollars in thousands |
June 30, 2006 |
March 31, 2006 |
June 30, 2005 |
|||
|
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Loans and leases by purpose: | ||||||
Commercial real estate | $2,959,739 | $2,225,533 | $1,975,218 | |||
Residential real estate | 220,140 | 216,740 | 217,245 | |||
Construction | 1,012,303 | 712,454 | 503,599 | |||
|
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Total real estate | 4,192,182 | 3,154,727 | 2,696,062 | |||
Commercial | 1,047,477 | 877,102 | 837,702 | |||
Leases | 18,192 | 16,959 | 16,887 | |||
Consumer | 48,997 | 46,593 | 59,571 | |||
Other | 2,230 | 813 | 1,782 | |||
|
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Total loans and leases | $5,309,078 | $4,096,194 | $3,612,004 | |||
|
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Quarter Ended | Quarter Ended | Quarter Ended | ||||
Dollars in thousands |
June 30, 2006 |
March 31, 2006 |
June 30, 2005 |
|||
|
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Allowance for credit losses | ||||||
Balance beginning of period | $44,546 | $43,885 | $45,360 | |||
Provision for credit losses | 54 | 21 | 1,400 | |||
Acquisition | 14,043 | -- | -- | |||
Charge-offs | (947) | (613) | (3,239) | |||
Less recoveries | 820 | 1,253 | 989 | |||
|
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Net recoveries | (127) | 640 | (2,250) | |||
Total Allowance for loan losses | 58,516 | 44,546 | 44,510 | |||
Reserve for unfunded commitments | 2,145 | 1,642 | 1,354 | |||
|
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Total Allowance for credit losses | $60,661 | $46,188 | $45,864 | |||
|
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Net charge-off's (recoveries) to average | ||||||
loans and leases (annualized) | 0.01% |
(0.06)% |
0.25% | |||
Recoveries to gross charge-offs | 87% | 204% | 31% | |||
Allowance for credit losses to | ||||||
loans and leases | 1.14% | 1.13% | 1.27% | |||
Allowance for credit losses to | ||||||
nonperforming loans and leases | 828% | 592% | 223% | |||
Nonperforming loans and leases | ||||||
to total loans and leases | 0.14% | 0.19% | 0.57% | |||
Nonperforming assets: | ||||||
Nonperforming loans and leases | $7,330 | $7,796 | $20,606 | |||
Real estate owned | 69 | 69 | 213 | |||
|
||||||
Total nonperforming assets | $7,399 | $7,865 | $20,819 | |||
|
Umpqua Holdings Corporation | ||||||||||||
Loan Portfolio | ||||||||||||
(Unaudited) | ||||||||||||
Six Months Ended | Six Months Ended | |||||||||||
Dollars in thousands |
June 30, 2006 |
June 30, 2005 |
||||||||||
|
||||||||||||
Allowance for credit losses | ||||||||||||
Balance beginning of period | $43,885 | $44,229 | ||||||||||
Provision for credit losses | 75 | 2,400 | ||||||||||
Acquisitions | 14,043 | -- | ||||||||||
Charge-offs | (1,560) | (3,851) | ||||||||||
Less recoveries | 2,073 | 1,732 | ||||||||||
|
||||||||||||
Net charge-offs | 513 | (2,119) | ||||||||||
Total Allowance for loan losses | 58,516 | 44,510 | ||||||||||
Reserve for unfunded commitments | 2,145 | 1,354 | ||||||||||
|
||||||||||||
Total Allowance for credit losses | $60,661 | $45,864 | ||||||||||
|
||||||||||||
Net (recoveries) charge-offs to average | ||||||||||||
loans and leases | (0.02)% | 0.12% | ||||||||||
Recoveries to gross charge-offs | 133% | 45% | ||||||||||
Deposits by Type | ||||||||||||
(Unaudited) | ||||||||||||
June 30, 2006 |
March 31, 2006 |
June 30, 2005 |
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|
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Dollars in thousands | Amount | Mix | Amount | Mix | Amount | Mix | ||||||
|
|
|
||||||||||
Demand, non interest-bearing | $1,264,249 | 23.1% | $990,803 | 23.4% | $977,160 | 24.6% | ||||||
Demand, interest-bearing | 2,198,838 | 40.3% | 1,768,347 | 41.8% | 1,562,189 | 39.3% | ||||||
Savings | 421,248 | 7.7% | 355,280 | 8.4% | 445,319 | 11.2% | ||||||
Time | 1,580,435 | 28.9% | 1,115,218 | 26.4% | 988,252 | 24.9% | ||||||
|
|
|
||||||||||
Total Deposits |
$5,464,770 | 100.0% | $4,229,648 | 100.0% | $3,972,920 | 100.0% | ||||||
|
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|
Umpqua Holdings Corporation | ||||||
Selected Ratios | ||||||
(Unaudited) | ||||||
Quarter Ended: | ||||||
|
||||||
June 30, 2006 |
March 31, 2006 |
June 30, 2005 |
||||
|
||||||
Net Interest Spread: | ||||||
Yield on loans and leases | 7.63% | 7.37% | 6.76% | |||
Yield on taxable investments | 4.53% | 4.44% | 4.27% | |||
Yield on tax-exempt investments (1) | 5.56% | 5.59% | 6.59% | |||
Yield on temporary investments | 4.13% | 4.28% | 2.76% | |||
Total yield on earning assets (1) |
7.22% | 6.96% | 6.36% | |||
Cost of interest-bearing deposits | 2.93% | 2.63% |
1.80% |
|||
Cost of securities sold under agreements | ||||||
to repurchase and fed funds purchased | 4.09% | 4.14% | 2.26% | |||
Cost of borrowings | 5.04% | 3.62% | 2.06% | |||
Cost of trust preferred securities | 7.63% | 7.37% | 6.16% | |||
Total cost of interest bearing liabilities | 3.27% | 2.94% | 2.03% | |||
Net interest spread (1) | 3.95% | 4.02% | 4.33% | |||
Net interest margin (1) | 4.68% | 4.69% | 4.81% | |||
Excluding merger related expense (2): | ||||||
Return on average assets | 1.37% | 1.32% | 1.30% | |||
Return on average tangible assets | 1.49% | 1.42% | 1.41% | |||
Return on average equity | 9.64% | 9.58% | 9.17% | |||
Return on average tangible equity | 22.24% | 21.22% | 21.74% | |||
As reported: | ||||||
Return on average assets | 1.31% | 1.31% | 1.29% | |||
Return on average tangible assets | 1.42% | 1.41% | 1.40% | |||
Return on average equity | 9.18% | 9.50% | 9.11% | |||
Return on average tangible equity | 21.17% | 21.04% | 21.61% | |||
Bank Only Ratios: | ||||||
Umpqua Bank efficiency ratio (2) | 51.78% | 53.59% | 52.71% | |||
Umpqua Bank net interest margin (1) | 4.93% | 4.95% | 5.05% |
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate. |
(2) | Excludes merger related expense, net of tax. |
Umpqua Holdings Corporation | ||||
Selected Ratios | ||||
(Unaudited) | ||||
Six Months Ended: |
||||
|
||||
June 30, 2006 | June 30, 2005 | |||
|
||||
Net Interest Spread: | ||||
Yield on loans and leases | 7.51% | 6.69% | ||
Yield on taxable investments | 4.49% | 4.25% | ||
Yield on tax-exempt investments (1) | 5.57% | 6.53% | ||
Yield on temporary investments | 4.17% | 2.66% | ||
Total yield on earning assets (1) | 7.10% | 6.30% | ||
Cost of interest-bearing deposits | 2.79% | 1.69% | ||
Cost of securities sold under | ||||
agreements to repurchase and fed funds purchased | 4.12% | 2.30% | ||
Cost of borrowings | 5.02% | 2.01% | ||
Cost of trust preferred securities | 7.51% | 6.00% | ||
Total cost of interest bearing liabilities | 3.12% | 1.92% | ||
Net interest spread (1) | 3.98% | 4.38% | ||
Net interest margin (1) | 4.69% | 4.82% | ||
Excluding merger related expense (2): | ||||
Return on average assets | 1.35% | 1.27% | ||
Return on average tangible assets | 1.46% | 1.39% | ||
Return on average equity | 9.61% | 9.00% | ||
Return on average tangible equity | 21.76% | 21.59% | ||
As reported: | ||||
Return on average assets | 1.31% | 1.27% | ||
Return on average tangible assets | 1.42% | 1.38% | ||
Return on average equity | 9.32% | 8.95% | ||
Return on average tangible equity | 21.10% | 21.48% | ||
Bank Only Ratios: | ||||
Umpqua Bank efficiency ratio (2) | 52.64% | 53.15% | ||
Umpqua Bank net interest margin (1) | 4.94% | 5.05% |
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate. |
(2) | Excludes merger related expense, net of tax. |
Umpqua Holdings Corporation | ||||||
Average Balances | ||||||
(Unaudited) | ||||||
Quarter Ended: | ||||||
Dollars in thousands |
June 30, 2006 |
March 31, 2006 |
June 30, 2005 |
|||
|
||||||
Loans held for sale | $14,619 | $9,551 | $15,463 | |||
Loans and leases | 4,505,246 | 4,015,579 | 3,555,336 | |||
Earning assets | 5,236,760 | 4,721,904 | 4,286,972 | |||
Goodwill & other intangibles | 486,167 | 408,212 | 407,364 | |||
Total assets | 6,030,752 | 5,411,419 | 4,980,367 | |||
Non interest bearing demand deposits | 1,048,201 | 968,506 | 949,610 | |||
Interest bearing deposits | 3,547,093 | 3,243,784 | 3,008,406 | |||
|
||||||
Total deposits | 4,595,294 | 4,212,290 | 3,958,016 | |||
Interest bearing liabilities | 4,064,871 | 3,646,484 | 3,273,642 | |||
Total shareholders' equity | 858,168 | 744,190 | 704,466 | |||
Tangible equity | 372,001 | 335,978 | 297,102 |
Umpqua Holdings Corporation | ||||
Average Balances | ||||
(Unaudited) | ||||
Six Months Ended: |
||||
|
||||
Dollars in thousands |
June 30, 2006 |
June 30, 2005 |
||
|
||||
Loans held for sale | $12,099 | $14,604 | ||
Loans and leases | 4,261,765 | 3,515,475 | ||
Earning assets | 4,980,754 | 4,251,650 | ||
Goodwill & other intangibles | 447,405 | 407,760 | ||
Total assets | 5,722,796 | 4,944,583 | ||
Non interest bearing demand deposits | 1,008,573 | 922,414 | ||
Interest bearing deposits | 3,396,277 | 2,968,383 | ||
|
||||
Total deposits | 4,404,850 | 3,890,797 | ||
Interest bearing liabilities | 3,856,833 | 3,268,976 | ||
Total shareholders' equity | 801,494 | 699,039 | ||
Tangible equity | 354,089 | 291,279 |
Umpqua Holdings Corporation | ||||||
Mortgage Banking Statistical Analysis | ||||||
(unaudited) | ||||||
Quarter Ended: |
||||||
June 30, 2006 |
March 31, 2006 |
June 30, 2005 |
||||
|
||||||
Dollars in thousands | ||||||
Mortgage Servicing Rights (MSR): | ||||||
Mortgage loans serviced for others | $1,004,148 | $1,014,680 | $1,026,088 | |||
MSR Asset (gross) | $13,735 | $13,610 | $12,455 | |||
Less: Valuation reserve |
(2,185) |
(2,407) | (3,187) | |||
|
||||||
MSR Asset (net of reserve) | $11,550 | $11,203 | $9,268 | |||
|
||||||
MSR as % of serviced portfolio |
1.15% |
1.10% |
0.90% | |||
Dollars in thousands, except per share | ||||||
data | ||||||
Mortgage Banking Revenue: | ||||||
Origination and sale | $1,937 | $1,523 | $2,156 | |||
Servicing | 344 |
354 |
183 | |||
MSR valuation reserve change | 222 | (33) | (2,111) | |||
|
||||||
Total Mortgage Banking Revenue | $2,503 | $1,844 |
$228 |
|||
|
||||||
Six Months Ended: |
||||||
June 30, 2006 |
June 30, 2005 |
|||||
|
||||||
Dollars in thousands | ||||||
Mortgage Banking Revenue: | ||||||
Origination and sale | $3 460 | $3,553 | ||||
Servicing | 698 | 420 | ||||
MSR valuation reserve change | 189 | (2,395) | ||||
|
||||||
Total Mortgage Banking Revenue | $4,347 | $1,578 | ||||
|
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# # # |