Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information [Abstract]

Segment Information

NOTE 26. OPERATING SEGMENTS 

The Company operates three primary segments: Community Banking, Home Lending and Wealth Management. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and retail customers in its primary market areas. As of December 31, 2012, the Community Banking segment operated 200 locations throughout Oregon, California, Washington, and Northern Nevada.

The Home Lending segment, which operates as a division of the Bank, originates, sells and services residential mortgage loans.

The Wealth Management segment consists of the operations of Umpqua Investments, Inc. an affiliate of the Bank, which offers a full range of retail brokerage services and products to its clients who consist primarily of individual investors, and Umpqua Private Bank, which serves high net worth individuals with liquid investable assets and provides customized financial solutions and offerings. The Company accounts for intercompany fees and services between Umpqua Investments and the Bank at estimated fair value according to regulatory requirements for services provided.  Intercompany items relate primarily to management services, referral fees and deposit rebates.

Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:

Year Ended December 31, 2012

(in thousands)

	Community		Wealth		Home
	Banking		Management		Lending		Consolidated
Interest income	$	420,622	$	15,192	$	20,271	$	456,085
Interest expense		45,240		865		2,744		48,849
Net interest income		375,382		14,327		17,527		407,236
Provision for non-covered loan and lease losses		21,796		-		-		21,796
Provision for covered loan and lease losses		7,405		-		-		7,405
Non-interest income		38,272		13,759		84,798		136,829
Non-interest expense		307,089		15,108		37,455		359,652
Income before provision for income taxes		77,364		12,978		64,870		155,212
Provision for income taxes		22,202		5,171		25,948		53,321
Net income		55,162		7,807		38,922		101,891
Dividends and undistributed earnings allocated
to participating securities		682		-		-		682
Net earnings available to common shareholders	$	54,480	$	7,807	$	38,922	$	101,209

Total assets	$	10,984,996	$	90,370	$	720,077	$	11,795,443
Total loans and leases (covered and non-covered)	$	6,713,792	$	74,132	$	370,234	$	7,158,158
Total deposits	$	8,968,867	$	382,033	$	28,375	$	9,379,275

Year Ended December 31, 2011

(in thousands)

	Community		Wealth		Home
	Banking		Management		Lending		Consolidated
Interest income	$	474,167	$	13,362	$	14,224	$	501,753
Interest expense		68,751		2,067		2,483		73,301
Net interest income		405,416		11,295		11,741		428,452
Provision for non-covered loan and lease losses		46,220		-		-		46,220
Provision for covered loan and lease losses		16,141		-		-		16,141
Non-interest income		43,282		13,963		26,873		84,118
Non-interest expense		302,883		15,630		20,458		338,971
Income before provision for income taxes		83,454		9,628		18,156		111,238
Provision for income taxes		26,023		3,457		7,262		36,742
Net income		57,431		6,171		10,894		74,496
Dividends and undistributed earnings allocated
to participating securities		356		-		-		356
Net earnings available to common shareholders	$	57,075	$	6,171	$	10,894	$	74,140

Total assets	$	11,086,493	$	53,044	$	423,321	$	11,562,858
Total loans and leases (covered and non-covered)	$	6,171,368	$	38,810	$	300,371	$	6,510,549
Total deposits	$	8,830,353	$	390,992	$	15,345	$	9,236,690

Year Ended December 31, 2010

(in thousands)

	Community		Wealth		Home
	Banking		Management		Lending		Consolidated
Interest income	$	466,054	$	9,978	$	12,564	$	488,596
Interest expense		89,622		1,435		2,755		93,812
Net interest income		376,432		8,543		9,809		394,784
Provision for non-covered loan and lease losses		113,668		-		-		113,668
Provision for covered loan and lease losses		5,151		-		-		5,151
Non-interest income		41,534		12,967		21,403		75,904
Non-interest expense		286,629		15,503		15,606		317,738
Income before provision for income taxes		12,518		6,007		15,606		34,131
Provision for income taxes		(2,342)		1,905		6,242		5,805
Net income		14,860		4,102		9,364		28,326
Preferred stock dividends		12,192		-		-		12,192
Dividends and undistributed earnings allocated
to participating securities		67		-		-		67
Net earnings available to common shareholders	$	2,601	$	4,102	$	9,364	$	16,067

Total assets	$	11,314,681	$	37,757	$	316,272	$	11,668,710
Total loans and leases (covered and non-covered)	$	6,198,532	$	23,631	$	222,722	$	6,444,885
Total deposits	$	9,160,058	$	262,148	$	11,599	$	9,433,805