EXHIBIT 99.1
Contacts:
Ron Farnsworth | Bradley Howes |
EVP/Chief Financial Officer | SVP/Director of Investor Relations |
Umpqua Holdings Corporation | Umpqua Holdings Corporation |
503-727-4108 | 503-727-4226 |
ronfarnsworth@umpquabank.com | bradhowes@umpquabank.com |
UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2014 RESULTS
Full-year 2014 operating earnings1 of $1.08 per share, up 15% from $0.94 in 2013
Fourth quarter 2014 operating earnings1 of $59.4 million, or $0.27 per share
Credit quality, capital and liquidity all remained strong
Sterling integration remains on track
PORTLAND, Ore. – January 28, 2015 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings available to common shareholders of $52.4 million for the fourth quarter of 2014, as compared to $58.8 million for the third quarter of 2014 and $25.1 million for the fourth quarter of 2013. Earnings per diluted common share were $0.24 for the fourth quarter of 2014, as compared to $0.27 for the third quarter of 2014 and $0.22 for the fourth quarter of 2013.
Operating earnings, which represent earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, and merger related expenses, net of tax, were $59.4 million for the fourth quarter of 2014, as compared to $65.1 million for the third quarter of 2014 and $27.9 million for the fourth quarter of 2013. Operating earnings per diluted common share were $0.27 for the fourth quarter of 2014, as compared to $0.30 for the third quarter of 2014 and $0.25 for the fourth quarter of 2013.
For the twelve months ended December 31, 2014, the Company reported net earnings available to common shareholders of $147.0 million, or $0.78 per diluted common share, as compared to $97.6 million, or $0.87 per diluted common share, for the year ended December 31, 2013. For the twelve months ended December 31, 2014, operating earnings1 were $202.4 million, or $1.08 per diluted common share, as compared to $105.7 million, or $0.94 per diluted common share, for the year ended December 31, 2013.
“2014 was a highly productive year for Umpqua in which the company delivered increased operating earnings and continued the organic growth of our loan and deposit portfolios, while maintaining strong credit quality, capital and liquidity levels to support future growth,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “Most significantly, we closed on the largest acquisition in the company's history, and expect to complete the integration in the coming months. With the strength of Umpqua’s unique brand and value proposition, I look forward to capitalizing on the momentum we've built as we head into 2015.”
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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Highlights:
• | Full-year 2014 operating earnings1 of $202.4 million: |
◦ | Operating results reflect the acquisition of Sterling Financial beginning on April 19, 2014; |
◦ | Return on average assets (operating basis)1 improved to 1.06%, from 0.92% in the prior year; |
◦ | Return on average tangible common equity (operating basis)1 improved to 12.62%, from 10.60% in the prior year; |
◦ | Efficiency ratio (operating basis)1 improved to 62.45%, from 66.74% in the prior year; |
• | Fourth quarter 2014 operating earnings1 of $59.4 million: |
◦ | Net interest income was up slightly from the prior quarter, while net interest margin decreased by 6 basis points from the prior quarter to 4.69%; |
◦ | Provision for loan and lease losses decreased by $9.1 million from the prior quarter, driven by an improvement in the credit quality of the loan and lease portfolio; |
◦ | Mortgage banking revenue decreased by $9.5 million from the prior quarter, driven by a higher mix of portfolio versus for sale mortgage production, along with lower gain on sale margins, and a larger loss from the change in the fair value of the MSR asset, consistent with the decline in mortgage interest rates; |
◦ | Other income decreased by $2.7 million from the prior quarter, driven by a lower level of portfolio loan sales; |
◦ | Non-interest expense (excluding merger-related expense) increased by $6.8 million from the prior quarter, driven by a $1.9 million increase in marketing expense to support new brand and growth campaigns, and a $3.3 million increase in net loss on other real estate owned; |
• | Credit quality, capital and liquidity all remained strong: |
◦ | Net charge-offs to average loans and leases (annualized) decreased to 0.12%, from 0.14% in the prior quarter; |
◦ | Tangible book value per common share1 increased to $8.80, as compared to $8.78 for the prior quarter and $8.49 for the same period in the prior year; |
◦ | Declared a dividend of $0.15 per common share; and |
◦ | Interest bearing cash increased to $1.3 billion, from $1.2 billion in the prior quarter. |
Balance Sheet
Total consolidated assets were $22.6 billion as of December 31, 2014, as compared to $22.5 billion as of September 30, 2014 and $11.6 billion as of December 31, 2013. Including secured off-balance sheet lines of credit, total available liquidity to the Company was $7.7 billion as of December 31, 2014, representing 34% of total assets and 46% of total deposits.
Gross loans and leases were $15.3 billion as of December 31, 2014, an increase of $68.5 million from September 30, 2014. During the quarter, the Company experienced a larger than expected level of early pay-offs within the loan portfolio, primarily the result of borrowers selling their business or refinances away to competitors at terms or prices the Company was unwilling to match. During the fourth quarter of 2014, the Company had loan sales of $65.4 million, including $47.3 million in portfolio residential mortgage loans and $16.7 million of government guaranteed loans.
Total deposits were $16.9 billion as of December 31, 2014, an increase of $164.5 million from September 30, 2014. This increase was driven primarily by an increase in interest-bearing demand and money market accounts, partially offset by a decrease in time deposits.
Net Interest Income
Net interest income was $228.0 million for the fourth quarter of 2014, up $2.3 million from the prior quarter and $117.9 million from the same period in the prior year. The increase from prior year was primarily driven by the acquisition of Sterling, along with continued organic loan growth. Net interest income for the fourth quarter of 2014 included
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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$21.6 million in interest income arising from the accretion of the credit discount recorded on the loans acquired from Sterling.
The Company’s net interest margin was 4.69% for the fourth quarter of 2014, down from 4.75% for the third quarter of 2014, but up from 4.29% for the fourth quarter of 2013. The decrease from the prior quarter was primarily driven by a higher balance of interest-bearing cash and a lower yield on interest-earning assets. The increase from the prior year was primarily driven by the acquisition of Sterling, a higher yield on interest-earning assets, and a lower cost of funds.
Credit Quality
Under purchase accounting rules, loans (including those considered non-performing) acquired from Sterling were recorded at their estimated fair value, and the related allowance for loan losses was eliminated. As a result, the Company wrote down the value of the non-covered loan and lease portfolio acquired from Sterling as of the acquisition date. The credit portion of the fair value mark is not reflected in the reported allowance for loan losses, or its related allowance coverage ratios, but should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.
Loans acquired with deteriorated credit quality are accounted for as purchased credit impaired pools. Accordingly, loans included in the purchased credit impaired pools are not reported as non-performing loans based upon their individual performance status.
During the fourth quarter of 2014, the Company reported $21.6 million of accretion from the Sterling credit discount in interest income. As of December 31, 2014, the purchased non-credit impaired loans had approximately $122.4 million of remaining credit discount that will accrete into interest income over the life of the loans, and the purchased credit impairment loan pools had approximately $66.5 million of remaining total discount.
The allowance for non-covered loan losses was $108.9 million, or 0.72% of non-covered loans and leases, as of December 31, 2014. To provide better comparability to prior periods, this pro-forma ratio would have been approximately 2% after grossing up the allowance for loan losses and the non-covered loans and leases by the amount of the remaining credit mark remaining as of quarter-end. This compares to a ratio of approximately 2.1% as of September 30, 2014.
The provision for loan losses was $5.2 million for the fourth quarter of 2014, down from $14.3 million for the third quarter of 2014. The decrease from the prior quarter was driven by an increase in loan pay-offs during the quarter, as well as upgrades within the non-covered loan and lease portfolio, and an improvement in the performance of the Sterling acquired loan portfolio. For the fourth quarter of 2014, net charge-offs to average loans and leases (annualized) decreased to 0.12%, from 0.14% in the prior quarter.
Non-covered, non-performing assets were $95.5 million, or 0.42% of total assets, as of December 31, 2014, as compared to $81.6 million, or 0.36% of total assets, as of September 30, 2014. Non-covered loans past due 31 to 89 days were $24.7 million, or 0.16% of non-covered loans and leases, as of December 31, 2014, as compared to $34.0 million, or 0.23% of non-covered loans and leases, as of September 30, 2014. Non-covered restructured loans on accrual status were $54.8 million as of December 31, 2014, as compared to $63.5 million as of September 30, 2014.
Non-Interest Income
Total non-interest income was $49.8 million for the fourth quarter of 2014, down $12.1 million from the prior quarter but up $23.0 million from the same period in the prior year. The decrease from the prior quarter was primarily driven by lower mortgage banking revenue and a $2.7 million decline in other income, primarily from a lower level of portfolio loan sales. The increase from the prior year was primarily driven by the acquisition of Sterling.
Residential mortgage banking revenue, which includes revenue from the origination and sale of residential mortgage loans, revenue from the servicing of residential mortgage loans and changes to the fair value of the residential mortgage
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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servicing rights (“MSR”) asset, was down $9.5 million from the prior quarter, but up slightly from the same period in the prior year. Revenue from the origination and sale of residential mortgages decreased by $5.7 million from the prior quarter, driven by a higher mix of portfolio versus for sale mortgage production, along with lower gain on sale margins. Loss related to the change in fair value of the MSR was $8.2 million for the fourth quarter of 2014, a $3.9 million increase from a loss of $4.3 million in the prior quarter. The larger loss was driven by higher prepayment speeds associated with the decline in mortgage interest rates.
The Company’s gain on sale margin, as a percentage of residential mortgage for sale production, was 2.95% for the fourth quarter of 2014, down from 3.46% in the prior quarter. Of the current quarter’s mortgage production, 63% related to purchase activity, as compared to 71% for the prior quarter and 70% for the same period in the prior year.
As of December 31, 2014, the Company serviced $11.6 billion of residential mortgage loans for others, and its related MSR asset was valued at $117.3 million, or 1.01% of the total serviced portfolio principal balance. This compares to $11.3 billion of residential mortgage loans serviced for others as of September 30, 2014, with a related MSR asset of $118.7 million, or 1.05% of the total serviced portfolio principal balance. As of December 31, 2013, the Company serviced $4.4 billion of residential mortgage loans serviced for others, and its related MSR asset was valued at $47.8 million, or 1.09% of the total serviced portfolio principal balance.
Non-interest Expense
Non-interest expense was $190.9 million for the fourth quarter of 2014, which included $10.2 million of merger-related expenses. This compares to $182.6 million, including $8.6 million of merger-related expenses, for the third quarter of 2014 and $95.4 million, including $1.6 million of merger-related expenses, for the fourth quarter of 2013.
Excluding merger-related expenses, non-interest expense increased by $6.8 million from the prior quarter. This increase was primarily driven by a $3.3 million increase in loss on a real estate owned property and a $1.9 million increase in marketing expense to support new brand and growth campaigns.
The fourth quarter of 2014 non-interest expense run-rate does not reflect the full benefit of the anticipated Sterling merger cost synergies. Integration efforts continue to proceed as planned, with the previously announced 2014 store consolidations completed, and system conversions scheduled through early 2015. Cost synergies also remain on track to the previously announced target of $87 million (annualized), which is expected to be realized following system conversions.
Income taxes
The Company recorded a provision for income taxes of $29.2 million for the fourth quarter of 2014, representing an effective tax rate of 35.7% for the quarter, bringing the full-year effective tax rate for 2014 to 35.5%.
Capital
As of December 31, 2014, the Company’s tangible book value per common share1 was $8.80 and its ratio of tangible common equity to tangible assets1 was 9.33%, as compared to $8.78 and 9.24%, respectively, in the prior quarter.
The Company made no open market nor privately negotiated purchases of common stock under the Company’s previously announced share repurchase plan during the fourth quarter of 2014. The Company may repurchase up to 12.0 million of additional shares under this plan.
The Company’s estimated total risk-based capital ratio was 14.9% and its estimated Tier 1 common to risk weighted assets ratio was 11.3% as of December 31, 2014, as compared to 14.9% and 11.2%, respectively, as of September 30. 2014. The Company remains well above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of December 31, 2014 are estimates, pending completion and filing of the Company’s regulatory reports.
On July 2, 2013, federal banking regulators approved the final proposed rules that revise the regulatory capital rules to incorporate certain revisions by the Basel Committee on Banking Supervision to the Basel capital framework (“Basel
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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III”). Under Basel III, the Company's combined trust preferred issuances must be phased out of Tier 1 and into Tier 2 capital (75% in 2015 and 100% in 2016). As of December 31, 2014, the total par value of trust preferred securities was $461.2 million. In addition, the Company is required under Basel III to exclude the entire deferred tax asset related to net operating losses (“NOLs”) from Tier 1 capital. As of December 31, 2014, the Company’s total net deferred tax asset was $229.5 million, and the portion related to NOLs was $196.3 million.
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.
The Company recognizes gains or losses on its junior subordinated debentures carried at fair value resulting from changes in interest rates and the estimated market credit risk adjusted spread that do not directly correlate with the Company’s operating performance. Also, the Company incurs significant expenses related to the completion and integration of mergers and acquisitions. Additionally, it may recognize goodwill impairment losses that have no direct effect on the Company’s or the Bank’s cash balances, liquidity, or regulatory capital ratios. Lastly, the Company may recognize one-time bargain purchase gains on certain acquisitions that are not reflective of the Company’s on-going earnings power. Accordingly, management believes that our operating results are best measured on a comparative basis excluding the impact of gains or losses on junior subordinated debentures measured at fair value, net of tax, merger-related expenses, net of tax, and other charges related to business combinations such as goodwill impairment charges or bargain purchase gains, net of tax. The Company defines operating earnings as earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, bargain purchase gains on acquisitions, net of tax, merger related expenses, net of tax, and goodwill impairment, and we calculate operating earnings per diluted share by dividing operating earnings by the same diluted share total used in determining diluted earnings per common share.
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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The following table provides the reconciliation of earnings available to common shareholders (GAAP) to operating earnings (non-GAAP), and earnings per diluted common share (GAAP) to operating earnings per diluted share (non-GAAP) for the periods presented:
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Net earnings available to common shareholders | $ | 52,400 | $ | 58,847 | $ | 17,138 | $ | 18,651 | $ | 25,058 | (11 | )% | 109 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value, net of tax (1) | 953 | 955 | 821 | 325 | 332 | 0 | % | 187 | % | |||||||||||||||||
Merger related expenses, net of tax (1) | 6,038 | 5,274 | 35,926 | 5,073 | 2,502 | 14 | % | 141 | % | |||||||||||||||||
Operating earnings | $ | 59,391 | $ | 65,076 | $ | 53,885 | $ | 24,049 | $ | 27,892 | (9 | )% | 113 | % | ||||||||||||
Earnings per diluted share: | ||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | $ | 0.22 | (11 | )% | 9 | % | ||||||||||||
Operating earnings | $ | 0.27 | $ | 0.30 | $ | 0.27 | $ | 0.21 | $ | 0.25 | (10 | )% | 8 | % | ||||||||||||
Twelve Months Ended | % Change | |||||||||||||||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||||||||||||||||||
Net earnings available to common shareholders | $ | 147,036 | $ | 97,573 | 51 | % | ||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value, net of tax (1) | 3,054 | 1,318 | 132 | % | ||||||||||||||||||||||
Merger related expenses, net of tax (1) | 52,311 | 6,820 | nm | |||||||||||||||||||||||
Operating earnings | $ | 202,401 | $ | 105,711 | 91 | % | ||||||||||||||||||||
Earnings per diluted share: | ||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.78 | $ | 0.87 | (10 | )% | ||||||||||||||||||||
Operating earnings | $ | 1.08 | $ | 0.94 | 15 | % | ||||||||||||||||||||
(1) Income tax effect of pro forma operating earnings adjustments at 40% for tax-deductible items. | ||||||||||||||||||||||||||
nm = not meaningful. | ||||||||||||||||||||||||||
Management believes tangible common equity and the tangible common equity ratio are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders’ equity divided by tangible assets.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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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, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | |||||||||||||||
Total shareholders' equity | $ | 3,780,997 | $ | 3,752,508 | $ | 3,729,060 | $ | 1,734,476 | $ | 1,727,426 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill and other intangible assets, net | 1,842,958 | 1,845,242 | 1,842,670 | 775,488 | 776,683 | |||||||||||||||
Tangible common shareholders' equity | $ | 1,938,039 | $ | 1,907,266 | $ | 1,886,390 | $ | 958,988 | $ | 950,743 | ||||||||||
Total assets | $ | 22,613,274 | $ | 22,488,059 | $ | 22,042,229 | $ | 11,838,726 | $ | 11,636,112 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill and other intangible assets, net | 1,842,958 | 1,845,242 | 1,842,670 | 775,488 | 776,683 | |||||||||||||||
Tangible assets | $ | 20,770,316 | $ | 20,642,817 | $ | 20,199,559 | $ | 11,063,238 | $ | 10,859,429 | ||||||||||
Common shares outstanding at period end | 220,161,120 | 217,261,722 | 217,190,721 | 112,319,525 | 111,973,203 | |||||||||||||||
Tangible common equity ratio | 9.33 | % | 9.24 | % | 9.34 | % | 8.67 | % | 8.75 | % | ||||||||||
Tangible book value per common share | $ | 8.80 | $ | 8.78 | $ | 8.69 | $ | 8.54 | $ | 8.49 | ||||||||||
About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has locations across Idaho, Washington, Oregon, California and Northern Nevada. Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Private Bank serves high net worth individuals and nonprofits,
providing trust and investment services. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquaholdingscorp.com.
Earnings Conference Call Information
The Company will host its fourth quarter 2014 earnings conference call on Thursday, January 29, 2015, at 10:00 a.m. PST (1:00 p.m. EST). During the call, the Company will provide an update on recent activities and discuss its fourth quarter and full-year 2014 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (888) 554-1432 ten minutes prior to the start time and enter conference ID: 5266505. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 5266505. The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at www.umpquaholdingscorp.com. A slide presentation to accompany the call will also be posted on the website before the call.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about growth and efficiency potential from the acquisition of Sterling Financial Corporation; the integration of the merger with Sterling Financial Corporation; timing and amount of merger-related synergies and timing of systems conversions; credit discount accretion related to the merger; and projected effective tax rate. Specific risks that could cause results to differ from forward-looking statements are set forth in our filings with the SEC and include, without limitation, changes in the discounted cash flow model used to determine the fair value of subordinated debentures; prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; material reductions in revenue or material increases in expenses; lack of strategic growth opportunities or our failure to execute on those opportunities; our inability to effectively manage problem credits; certain loan assets becoming ineligible for loss sharing; unanticipated increases in the cost of deposits; the consequences of a phase-out of junior subordinated debentures
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January 28, 2015
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from Tier 1 capital; Umpqua’s ability to achieve the synergies and earnings accretion contemplated by the Sterling merger; Umpqua’s ability to promptly and effectively integrate the businesses of Sterling and Umpqua and timely complete system conversions; the diversion of management time on issues related to merger integration; changes in laws or regulations; and changes in general economic conditions.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
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Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(In thousands, except per share data) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans and leases | $ | 226,853 | $ | 223,972 | $ | 208,992 | $ | 103,986 | $ | 106,362 | 1 | % | 113 | % | ||||||||||||
Interest and dividends on investments: | ||||||||||||||||||||||||||
Taxable | 11,629 | 12,136 | 12,728 | 9,291 | 9,517 | (4 | )% | 22 | % | |||||||||||||||||
Exempt from federal income tax | 2,746 | 2,790 | 2,697 | 2,112 | 2,173 | (2 | )% | 26 | % | |||||||||||||||||
Dividends | 66 | 81 | 128 | 50 | 87 | (19 | )% | (24 | )% | |||||||||||||||||
Temporary investments & interest bearing deposits | 857 | 544 | 422 | 441 | 399 | 58 | % | 115 | % | |||||||||||||||||
Total interest income | 242,151 | 239,523 | 224,967 | 115,880 | 118,538 | 1 | % | 104 | % | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 7,119 | 6,773 | 6,075 | 3,848 | 4,168 | 5 | % | 71 | % | |||||||||||||||||
Repurchase agreements and fed funds purchased | 48 | 54 | 203 | 41 | 42 | (11 | )% | 14 | % | |||||||||||||||||
Term debt | 3,570 | 3,586 | 3,364 | 2,273 | 2,332 | 0 | % | 53 | % | |||||||||||||||||
Junior subordinated debentures | 3,399 | 3,394 | 3,066 | 1,880 | 1,922 | 0 | % | 77 | % | |||||||||||||||||
Total interest expense | 14,136 | 13,807 | 12,708 | 8,042 | 8,464 | 2 | % | 67 | % | |||||||||||||||||
Net interest income | 228,015 | 225,716 | 212,259 | 107,838 | 110,074 | 1 | % | 107 | % | |||||||||||||||||
Provision for loan and lease losses | 5,241 | 14,333 | 14,696 | 5,971 | 2,471 | (63 | )% | 112 | % | |||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Service charges | 15,472 | 16,090 | 15,371 | 7,767 | 8,108 | (4 | )% | 91 | % | |||||||||||||||||
Brokerage fees | 4,960 | 4,882 | 4,566 | 3,725 | 3,584 | 2 | % | 38 | % | |||||||||||||||||
Residential mortgage banking revenue, net | 16,489 | 25,996 | 24,341 | 10,439 | 15,957 | (37 | )% | 3 | % | |||||||||||||||||
Net gain on investment securities | 1,026 | 902 | 976 | — | 191 | 14 | % | 437 | % | |||||||||||||||||
Loss on junior subordinated debentures carried at fair value | (1,589 | ) | (1,590 | ) | (1,369 | ) | (542 | ) | (554 | ) | 0 | % | 187 | % | ||||||||||||
Change in FDIC indemnification asset | (1,982 | ) | (2,728 | ) | (5,601 | ) | (4,840 | ) | (5,708 | ) | (27 | )% | (65 | )% | ||||||||||||
BOLI income | 1,971 | 2,161 | 1,967 | 736 | 621 | (9 | )% | 217 | % | |||||||||||||||||
Other income | 13,485 | 16,211 | 4,278 | 5,722 | 4,586 | (17 | )% | 194 | % | |||||||||||||||||
Total non-interest income | 49,832 | 61,924 | 44,529 | 23,007 | 26,785 | (20 | )% | 86 | % | |||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 104,039 | 102,564 | 95,560 | 53,218 | 52,720 | 1 | % | 97 | % | |||||||||||||||||
Net occupancy and equipment | 32,987 | 33,029 | 28,746 | 16,501 | 16,254 | 0 | % | 103 | % | |||||||||||||||||
Intangible amortization | 3,102 | 3,103 | 2,808 | 1,194 | 1,186 | 0 | % | 162 | % | |||||||||||||||||
FDIC assessments | 3,522 | 3,038 | 2,575 | 1,863 | 1,922 | 16 | % | 83 | % | |||||||||||||||||
Net loss (gain) on other real estate owned | 3,609 | 313 | 258 | (64 | ) | 1,397 | nm | 158 | % | |||||||||||||||||
Merger related expenses | 10,171 | 8,632 | 57,531 | 5,983 | 1,639 | 18 | % | 521 | % | |||||||||||||||||
Other expense | 33,426 | 31,879 | 26,653 | 17,823 | 20,246 | 5 | % | 65 | % | |||||||||||||||||
Total non-interest expense | 190,856 | 182,558 | 214,131 | 96,518 | 95,364 | 5 | % | 100 | % | |||||||||||||||||
Income before provision for income taxes | 81,750 | 90,749 | 27,961 | 28,356 | 39,024 | (10 | )% | 109 | % | |||||||||||||||||
Provision for income taxes | 29,204 | 31,760 | 10,740 | 9,592 | 13,754 | (8 | )% | 112 | % | |||||||||||||||||
Net income | 52,546 | 58,989 | 17,221 | 18,764 | 25,270 | (11 | )% | 108 | % | |||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | 146 | 142 | 83 | 113 | 212 | 3 | % | (31 | )% | |||||||||||||||||
Net earnings available to common shareholders | $ | 52,400 | $ | 58,847 | $ | 17,138 | $ | 18,651 | $ | 25,058 | (11 | )% | 109 | % | ||||||||||||
Weighted average basic shares outstanding | 218,963 | 217,245 | 196,312 | 112,170 | 111,949 | 1 | % | 96 | % | |||||||||||||||||
Weighted average diluted shares outstanding | 219,974 | 218,941 | 197,638 | 112,367 | 112,214 | 0 | % | 96 | % | |||||||||||||||||
Earnings per common share – basic | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | $ | 0.22 | (11 | )% | 9 | % | ||||||||||||
Earnings per common share – diluted | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | $ | 0.22 | (11 | )% | 9 | % | ||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 10
Umpqua Holdings Corporation | |||||||||||
Consolidated Statements of Income | |||||||||||
(Unaudited) | |||||||||||
Twelve Months Ended | % Change | ||||||||||
(In thousands, except per share data) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||
Interest income | |||||||||||
Loans and leases | $ | 763,803 | $ | 398,214 | 92 | % | |||||
Interest and dividends on investments: | |||||||||||
Taxable | 45,784 | 34,146 | 34 | % | |||||||
Exempt from federal income tax | 10,345 | 8,898 | 16 | % | |||||||
Dividends | 325 | 252 | 29 | % | |||||||
Temporary investments & interest bearing deposits | 2,264 | 1,336 | 69 | % | |||||||
Total interest income | 822,521 | 442,846 | 86 | % | |||||||
Interest expense | |||||||||||
Deposits | 23,815 | 20,755 | 15 | % | |||||||
Repurchase agreements and fed funds purchased | 346 | 141 | 145 | % | |||||||
Term debt | 12,793 | 9,248 | 38 | % | |||||||
Junior subordinated debentures | 11,739 | 7,737 | 52 | % | |||||||
Total interest expense | 48,693 | 37,881 | 29 | % | |||||||
Net interest income | 773,828 | 404,965 | 91 | % | |||||||
Provision for loan and lease losses | 40,241 | 10,716 | 276 | % | |||||||
Non-interest income | |||||||||||
Service charges | 54,700 | 30,952 | 77 | % | |||||||
Brokerage fees | 18,133 | 14,736 | 23 | % | |||||||
Residential mortgage banking revenue, net | 77,265 | 78,885 | (2 | )% | |||||||
Net gain on investment securities | 2,904 | 209 | nm | ||||||||
Loss on junior subordinated debentures carried at fair value | (5,090 | ) | (2,197 | ) | 132 | % | |||||
Change in FDIC indemnification asset | (15,151 | ) | (25,549 | ) | (41 | )% | |||||
BOLI income | 6,835 | 3,035 | 125 | % | |||||||
Other income | 39,696 | 21,370 | 86 | % | |||||||
Total non-interest income | 179,292 | 121,441 | 48 | % | |||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 355,379 | 209,991 | 69 | % | |||||||
Net occupancy and equipment | 111,263 | 62,067 | 79 | % | |||||||
Intangible amortization | 10,207 | 4,781 | 113 | % | |||||||
FDIC assessments | 10,998 | 6,954 | 58 | % | |||||||
Net loss on other real estate owned | 4,116 | 1,248 | 230 | % | |||||||
Merger related expenses | 82,317 | 8,836 | nm | ||||||||
Other expense | 109,783 | 70,784 | 55 | % | |||||||
Total non-interest expense | 684,063 | 364,661 | 88 | % | |||||||
Income before provision for income taxes | 228,816 | 151,029 | 52 | % | |||||||
Provision for income taxes | 81,296 | 52,668 | 54 | % | |||||||
Net income | 147,520 | 98,361 | 50 | % | |||||||
Dividends and undistributed earnings | |||||||||||
allocated to participating securities | 484 | 788 | (39 | )% | |||||||
Net earnings available to common shareholders | $ | 147,036 | $ | 97,573 | 51 | % | |||||
Weighted average basic shares outstanding | 186,550 | 111,938 | 67 | % | |||||||
Weighted average diluted shares outstanding | 187,544 | 112,176 | 67 | % | |||||||
Earnings per common share – basic | $ | 0.79 | $ | 0.87 | (9 | )% | |||||
Earnings per common share – diluted | $ | 0.78 | $ | 0.87 | (10 | )% | |||||
nm = not meaningful | |||||||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 11
Umpqua Holdings Corporation Consolidated Balance Sheets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||
(In thousands, except per share data) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 282,455 | $ | 266,624 | $ | 347,152 | $ | 196,963 | $ | 178,685 | 6 | % | 58 | % | ||||||||||||
Interest bearing deposits | 1,322,214 | 1,176,599 | 492,739 | 887,620 | 611,224 | 12 | % | 116 | % | |||||||||||||||||
Temporary investments | 502 | 487 | 529 | 525 | 514 | 3 | % | (2 | )% | |||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Trading, at fair value | 9,999 | 9,727 | 9,420 | 4,498 | 5,958 | 3 | % | 68 | % | |||||||||||||||||
Available for sale, at fair value | 2,298,555 | 2,400,061 | 2,588,969 | 1,701,730 | 1,790,978 | (4 | )% | 28 | % | |||||||||||||||||
Held to maturity, at amortized cost | 5,211 | 5,356 | 5,519 | 5,465 | 5,563 | (3 | )% | (6 | )% | |||||||||||||||||
Loans held for sale | 286,802 | 265,800 | 328,968 | 73,106 | 104,664 | 8 | % | 174 | % | |||||||||||||||||
Loans and leases | 15,327,732 | 15,259,201 | 15,136,455 | 7,763,691 | 7,728,166 | 0 | % | 98 | % | |||||||||||||||||
Allowance for loan and lease losses | (116,167 | ) | (115,635 | ) | (106,495 | ) | (97,029 | ) | (95,085 | ) | 0 | % | 22 | % | ||||||||||||
Loans and leases, net | 15,211,565 | 15,143,566 | 15,029,960 | 7,666,662 | 7,633,081 | 0 | % | 99 | % | |||||||||||||||||
Restricted equity securities | 119,334 | 120,759 | 122,194 | 29,948 | 30,685 | (1 | )% | 289 | % | |||||||||||||||||
Premises and equipment, net | 317,834 | 314,364 | 310,407 | 180,199 | 177,680 | 1 | % | 79 | % | |||||||||||||||||
Goodwill | 1,786,225 | 1,785,407 | 1,779,732 | 764,304 | 764,305 | 0 | % | 134 | % | |||||||||||||||||
Other intangible assets, net | 56,733 | 59,835 | 62,938 | 11,184 | 12,378 | (5 | )% | 358 | % | |||||||||||||||||
Residential mortgage servicing rights, at fair value | 117,259 | 118,725 | 114,192 | 49,220 | 47,765 | (1 | )% | 145 | % | |||||||||||||||||
Other real estate owned | 37,942 | 34,456 | 27,982 | 23,780 | 23,935 | 10 | % | 59 | % | |||||||||||||||||
FDIC indemnification asset | 4,417 | 7,811 | 11,293 | 18,362 | 23,174 | (43 | )% | (81 | )% | |||||||||||||||||
Bank owned life insurance | 294,296 | 293,511 | 292,714 | 97,589 | 96,938 | 0 | % | 204 | % | |||||||||||||||||
Deferred tax assets, net | 229,520 | 250,910 | 259,993 | 11,393 | 16,627 | (9 | )% | nm | ||||||||||||||||||
Other assets | 232,411 | 234,061 | 257,528 | 116,178 | 111,958 | (1 | )% | 108 | % | |||||||||||||||||
Total assets | $ | 22,613,274 | $ | 22,488,059 | $ | 22,042,229 | $ | 11,838,726 | $ | 11,636,112 | 1 | % | 94 | % | ||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 16,892,099 | $ | 16,727,610 | $ | 16,323,000 | $ | 9,273,583 | $ | 9,117,660 | 1 | % | 85 | % | ||||||||||||
Securities sold under agreements to repurchase | 313,321 | 339,367 | 315,025 | 262,483 | 224,882 | (8 | )% | 39 | % | |||||||||||||||||
Term debt | 1,006,395 | 1,057,140 | 1,057,915 | 250,964 | 251,494 | (5 | )% | 300 | % | |||||||||||||||||
Junior subordinated debentures, at fair value | 249,294 | 247,528 | 246,077 | 87,800 | 87,274 | 1 | % | 186 | % | |||||||||||||||||
Junior subordinated debentures, at amortized cost | 101,576 | 101,657 | 101,737 | 101,818 | 101,899 | 0 | % | 0 | % | |||||||||||||||||
Other liabilities | 269,592 | 262,249 | 269,415 | 127,602 | 125,477 | 3 | % | 115 | % | |||||||||||||||||
Total liabilities | 18,832,277 | 18,735,551 | 18,313,169 | 10,104,250 | 9,908,686 | 1 | % | 90 | % | |||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Common stock | 3,519,316 | 3,515,621 | 3,512,507 | 1,514,969 | 1,514,485 | 0 | % | 132 | % | |||||||||||||||||
Retained earnings | 249,613 | 230,302 | 204,109 | 219,686 | 217,917 | 8 | % | 15 | % | |||||||||||||||||
Accumulated other comprehensive income (loss) | 12,068 | 6,585 | 12,444 | (179 | ) | (4,976 | ) | 83 | % | nm | ||||||||||||||||
Total shareholders' equity | 3,780,997 | 3,752,508 | 3,729,060 | 1,734,476 | 1,727,426 | 1 | % | 119 | % | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 22,613,274 | $ | 22,488,059 | $ | 22,042,229 | $ | 11,838,726 | $ | 11,636,112 | 1 | % | 94 | % | ||||||||||||
Common shares outstanding at period end | 220,161,120 | 217,261,722 | 217,190,721 | 112,319,525 | 111,973,203 | 1 | % | 97 | % | |||||||||||||||||
Book value per common share | $ | 17.17 | $ | 17.27 | $ | 17.17 | $ | 15.44 | $ | 15.43 | (1 | )% | 11 | % | ||||||||||||
Tangible book value per common share | $ | 8.80 | $ | 8.78 | $ | 8.69 | $ | 8.54 | $ | 8.49 | 0 | % | 4 | % | ||||||||||||
Tangible equity - common | $ | 1,938,039 | $ | 1,907,266 | $ | 1,886,390 | $ | 958,988 | $ | 950,743 | 2 | % | 104 | % | ||||||||||||
Tangible common equity to tangible assets | 9.33 | % | 9.24 | % | 9.34 | % | 8.67 | % | 8.75 | % | 1 | % | 7 | % | ||||||||||||
nm = not meaningful
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 12
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Loan & Lease Portfolio | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Loans & leases: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | $ | 3,290,610 | $ | 3,423,453 | $ | 3,517,328 | $ | 2,511,770 | $ | 2,535,162 | (4 | )% | 30 | % | ||||||||||||
Owner occupied term, net | 2,633,864 | 2,682,870 | 2,714,319 | 1,331,969 | 1,309,400 | (2 | )% | 101 | % | |||||||||||||||||
Multifamily, net | 2,638,618 | 2,565,711 | 2,506,864 | 428,489 | 441,208 | 3 | % | 498 | % | |||||||||||||||||
Commercial construction, net | 258,722 | 247,816 | 264,150 | 232,708 | 248,686 | 4 | % | 4 | % | |||||||||||||||||
Residential development, net | 81,846 | 76,849 | 94,857 | 96,723 | 95,699 | 7 | % | (14 | )% | |||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 1,102,987 | 1,119,658 | 1,114,315 | 745,813 | 786,564 | (1 | )% | 40 | % | |||||||||||||||||
Lines of credit & other, net | 1,322,722 | 1,344,741 | 1,330,771 | 1,015,251 | 994,058 | (2 | )% | 33 | % | |||||||||||||||||
Leases & equipment finance, net | 523,114 | 492,221 | 463,784 | 388,418 | 361,591 | 6 | % | 45 | % | |||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 2,233,735 | 2,102,333 | 1,976,934 | 672,845 | 619,517 | 6 | % | 261 | % | |||||||||||||||||
Home equity lines & loans, net | 852,478 | 836,054 | 817,391 | 287,491 | 283,906 | 2 | % | 200 | % | |||||||||||||||||
Consumer & other, net | 389,036 | 367,495 | 335,742 | 52,214 | 52,375 | 6 | % | 643 | % | |||||||||||||||||
Total, net of deferred fees and costs | $ | 15,327,732 | $ | 15,259,201 | $ | 15,136,455 | $ | 7,763,691 | $ | 7,728,166 | 0 | % | 98 | % | ||||||||||||
Non-covered loans total | $ | 15,063,221 | $ | 14,975,811 | $ | 14,830,345 | $ | 7,411,108 | $ | 7,354,403 | ||||||||||||||||
Covered loans total | 264,511 | 283,390 | 306,110 | 352,583 | 373,763 | |||||||||||||||||||||
Total loans, net | $ | 15,327,732 | $ | 15,259,201 | $ | 15,136,455 | $ | 7,763,691 | $ | 7,728,166 | ||||||||||||||||
Loan & leases mix: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | 20 | % | 22 | % | 23 | % | 31 | % | 32 | % | ||||||||||||||||
Owner occupied term, net | 17 | % | 18 | % | 18 | % | 17 | % | 17 | % | ||||||||||||||||
Multifamily, net | 17 | % | 17 | % | 17 | % | 6 | % | 6 | % | ||||||||||||||||
Commercial construction, net | 2 | % | 2 | % | 2 | % | 3 | % | 3 | % | ||||||||||||||||
Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 7 | % | 7 | % | 7 | % | 10 | % | 10 | % | ||||||||||||||||
Lines of credit & other, net | 9 | % | 9 | % | 9 | % | 13 | % | 13 | % | ||||||||||||||||
Leases & equipment finance, net | 3 | % | 3 | % | 3 | % | 5 | % | 5 | % | ||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 15 | % | 14 | % | 13 | % | 9 | % | 8 | % | ||||||||||||||||
Home equity lines & loans, net | 6 | % | 5 | % | 5 | % | 4 | % | 4 | % | ||||||||||||||||
Consumer & other, net | 3 | % | 2 | % | 2 | % | 1 | % | 1 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 13
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Deposits by Type/Core Deposits | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 4,744,804 | $ | 4,741,897 | $ | 4,363,710 | $ | 2,465,606 | $ | 2,436,477 | 0 | % | 95 | % | ||||||||||||
Demand, interest bearing | 2,054,994 | 1,942,792 | 1,869,626 | 1,182,634 | 1,233,070 | 6 | % | 67 | % | |||||||||||||||||
Money market | 6,113,138 | 5,998,339 | 5,973,197 | 3,526,368 | 3,349,946 | 2 | % | 82 | % | |||||||||||||||||
Savings | 971,185 | 952,122 | 912,073 | 578,238 | 560,699 | 2 | % | 73 | % | |||||||||||||||||
Time | 3,007,978 | 3,092,460 | 3,204,394 | 1,520,737 | 1,537,468 | (3 | )% | 96 | % | |||||||||||||||||
Total | $ | 16,892,099 | $ | 16,727,610 | $ | 16,323,000 | $ | 9,273,583 | $ | 9,117,660 | 1 | % | 85 | % | ||||||||||||
Total core deposits (1) | $ | 14,808,765 | $ | 14,653,183 | $ | 14,171,946 | $ | 8,205,636 | $ | 8,052,280 | 1 | % | 84 | % | ||||||||||||
Deposit mix: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 28 | % | 28 | % | 26 | % | 27 | % | 26 | % | ||||||||||||||||
Demand, interest bearing | 12 | % | 12 | % | 11 | % | 13 | % | 14 | % | ||||||||||||||||
Money market | 36 | % | 36 | % | 37 | % | 38 | % | 37 | % | ||||||||||||||||
Savings | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Time | 18 | % | 18 | % | 20 | % | 16 | % | 17 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Number of open accounts: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 367,854 | 366,279 | 363,378 | 190,298 | 187,088 | |||||||||||||||||||||
Demand, interest bearing | 86,135 | 87,223 | 88,162 | 46,291 | 48,643 | |||||||||||||||||||||
Money market | 63,095 | 63,979 | 65,216 | 34,913 | 35,303 | |||||||||||||||||||||
Savings | 150,548 | 150,527 | 149,877 | 84,686 | 84,144 | |||||||||||||||||||||
Time | 53,530 | 54,565 | 56,285 | 22,755 | 23,688 | |||||||||||||||||||||
Total | 721,162 | 722,573 | 722,918 | 378,943 | 378,866 | |||||||||||||||||||||
Average balance per account: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 12.9 | $ | 12.9 | $ | 12.3 | $ | 13.0 | $ | 13.0 | ||||||||||||||||
Demand, interest bearing | 23.9 | 22.3 | 21.2 | 25.5 | 25.3 | |||||||||||||||||||||
Money market | 96.9 | 93.8 | 91.6 | 101.0 | 94.9 | |||||||||||||||||||||
Savings | 6.5 | 6.3 | 6.1 | 6.8 | 6.7 | |||||||||||||||||||||
Time | 56.2 | 56.7 | 56.9 | 66.8 | 64.9 | |||||||||||||||||||||
Total | $ | 23.4 | $ | 23.2 | $ | 22.7 | $ | 24.5 | $ | 24.1 | ||||||||||||||||
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 14
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Non-performing Assets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Non-covered, non-performing assets: | ||||||||||||||||||||||||||
Non-covered loans and leases on non-accrual status | $ | 52,041 | $ | 42,397 | $ | 48,358 | $ | 37,884 | $ | 31,891 | 23 | % | 63 | % | ||||||||||||
Non-covered loans and leases past due 90+ days & accruing | 7,512 | 7,416 | 4,919 | 2,269 | 3,430 | 1 | % | 119 | % | |||||||||||||||||
Total non-performing loans and leases | 59,553 | 49,813 | 53,277 | 40,153 | 35,321 | 20 | % | 69 | % | |||||||||||||||||
Non-covered other real estate owned | 35,989 | 31,753 | 26,172 | 22,034 | 21,833 | 13 | % | 65 | % | |||||||||||||||||
Total | $ | 95,542 | $ | 81,566 | $ | 79,449 | $ | 62,187 | $ | 57,154 | 17 | % | 67 | % | ||||||||||||
Non-covered performing restructured loans and leases | $ | 54,836 | $ | 63,507 | $ | 67,464 | $ | 67,897 | $ | 68,791 | (14 | )% | (20 | )% | ||||||||||||
Non-covered loans and leases past due 31-89 days | $ | 24,659 | $ | 34,025 | $ | 28,913 | $ | 29,416 | $ | 15,290 | (28 | )% | 61 | % | ||||||||||||
Non-covered loans and leases past due 31-89 days to non-covered loans and leases | 0.16 | % | 0.23 | % | 0.19 | % | 0.40 | % | 0.21 | % | ||||||||||||||||
Non-covered, non-performing loans and leases to non-covered loans and leases | 0.40 | % | 0.33 | % | 0.36 | % | 0.54 | % | 0.48 | % | ||||||||||||||||
Non-covered, non-performing assets to total assets | 0.42 | % | 0.36 | % | 0.36 | % | 0.53 | % | 0.49 | % | ||||||||||||||||
Covered non-performing assets: | ||||||||||||||||||||||||||
Covered loans and leases on non-accrual status | $ | — | $ | — | $ | — | $ | — | $ | — | nm | nm | ||||||||||||||
Total non-performing loans and leases | — | — | — | — | — | nm | nm | |||||||||||||||||||
Covered other real estate owned | 1,953 | 2,703 | 1,810 | 1,746 | 2,102 | (28 | )% | (7 | )% | |||||||||||||||||
Total | $ | 1,953 | $ | 2,703 | $ | 1,810 | $ | 1,746 | $ | 2,102 | (28 | )% | (7 | )% | ||||||||||||
Covered non-performing loans and leases to covered loans and leases | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||
Covered non-performing assets to total assets | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||||||||
Total non-performing assets: | ||||||||||||||||||||||||||
Loans and leases on non-accrual status | $ | 52,041 | $ | 42,397 | $ | 48,358 | $ | 37,884 | $ | 31,891 | 23 | % | 63 | % | ||||||||||||
Loans and leases past due 90+ days & accruing | 7,512 | 7,416 | 4,919 | 2,269 | 3,430 | 1 | % | 119 | % | |||||||||||||||||
Total non-performing loans and leases | 59,553 | 49,813 | 53,277 | 40,153 | 35,321 | 20 | % | 69 | % | |||||||||||||||||
Other real estate owned | 37,942 | 34,456 | 27,982 | 23,780 | 23,935 | 10 | % | 59 | % | |||||||||||||||||
Total | $ | 97,495 | $ | 84,269 | $ | 81,259 | $ | 63,933 | $ | 59,256 | 16 | % | 65 | % | ||||||||||||
Non-performing loans and leases to loans and leases | 0.39 | % | 0.33 | % | 0.35 | % | 0.52 | % | 0.46 | % | ||||||||||||||||
Non-performing assets to total assets | 0.43 | % | 0.37 | % | 0.37 | % | 0.54 | % | 0.51 | % | ||||||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 15
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Allowance for non-covered credit losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 107,807 | $ | 97,995 | $ | 86,709 | $ | 85,314 | $ | 84,694 | ||||||||||||||||
Provision for non-covered loan and lease losses | 4,844 | 14,431 | 15,399 | 5,400 | 3,840 | (66 | )% | 26 | % | |||||||||||||||||
Charge-offs | (7,886 | ) | (6,743 | ) | (5,814 | ) | (5,565 | ) | (11,349 | ) | 17 | % | (31 | )% | ||||||||||||
Recoveries | 4,140 | 2,124 | 1,701 | 1,560 | 8,129 | 95 | % | (49 | )% | |||||||||||||||||
Net charge-offs | (3,746 | ) | (4,619 | ) | (4,113 | ) | (4,005 | ) | (3,220 | ) | (19 | )% | 16 | % | ||||||||||||
Total allowance for non-covered loan and lease losses | 108,905 | 107,807 | 97,995 | 86,709 | 85,314 | 1 | % | 28 | % | |||||||||||||||||
Reserve for unfunded commitments | 3,539 | 4,388 | 4,845 | 1,417 | 1,436 | (19 | )% | 146 | % | |||||||||||||||||
Total allowance for non-covered credit losses | $ | 112,444 | $ | 112,195 | $ | 102,840 | $ | 88,126 | $ | 86,750 | 0 | % | 30 | % | ||||||||||||
Net charge-offs to average non-covered loans and leases (annualized) | 0.10 | % | 0.12 | % | 0.12 | % | 0.22 | % | 0.18 | % | ||||||||||||||||
Recoveries to gross charge-offs | 52.50 | % | 31.50 | % | 29.26 | % | 28.03 | % | 71.63 | % | ||||||||||||||||
Allowance for non-covered loan and lease losses to non-covered loans and leases | 0.72 | % | 0.72 | % | 0.66 | % | 1.17 | % | 1.16 | % | ||||||||||||||||
Allowance for non-covered credit losses to non-covered loans and leases | 0.75 | % | 0.75 | % | 0.69 | % | 1.19 | % | 1.18 | % | ||||||||||||||||
Allowance for covered credit losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 7,828 | $ | 8,500 | $ | 10,320 | $ | 9,771 | $ | 11,918 | ||||||||||||||||
Provision for (recapture of)covered loan and lease losses | 397 | (98 | ) | (703 | ) | 571 | (1,369 | ) | nm | nm | ||||||||||||||||
Charge-offs | (1,202 | ) | (781 | ) | (1,518 | ) | (669 | ) | (1,387 | ) | 54 | % | (13 | )% | ||||||||||||
Recoveries | 239 | 207 | 401 | 647 | 609 | 15 | % | (61 | )% | |||||||||||||||||
Net charge-offs | (963 | ) | (574 | ) | (1,117 | ) | (22 | ) | (778 | ) | 68 | % | 24 | % | ||||||||||||
Total allowance for covered loan and lease losses | $ | 7,262 | $ | 7,828 | $ | 8,500 | $ | 10,320 | $ | 9,771 | (7 | )% | (26 | )% | ||||||||||||
Net charge-offs to average covered loans and leases (annualized) | 1.43 | % | 0.80 | % | 1.41 | % | 0.03 | % | 0.83 | % | ||||||||||||||||
Recoveries to gross charge-offs | 19.88 | % | 26.50 | % | 26.42 | % | 96.71 | % | 43.91 | % | ||||||||||||||||
Allowance for covered loan and lease losses to covered loans and leases | 2.75 | % | 2.76 | % | 2.78 | % | 2.93 | % | 2.61 | % | ||||||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 16
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | ||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 115,635 | $ | 106,495 | $ | 97,029 | $ | 95,085 | $ | 96,612 | ||||||||||||||||
Provision for loan and lease losses | 5,241 | 14,333 | 14,696 | 5,971 | 2,471 | (63 | )% | 112 | % | |||||||||||||||||
Charge-offs | (9,088 | ) | (7,524 | ) | (7,332 | ) | (6,234 | ) | (12,736 | ) | 21 | % | (29 | )% | ||||||||||||
Recoveries | 4,379 | 2,331 | 2,102 | 2,207 | 8,738 | 88 | % | (50 | )% | |||||||||||||||||
Net charge-offs | (4,709 | ) | (5,193 | ) | (5,230 | ) | (4,027 | ) | (3,998 | ) | (9 | )% | 18 | % | ||||||||||||
Total allowance for loan and lease losses | 116,167 | 115,635 | 106,495 | 97,029 | 95,085 | 0 | % | 22 | % | |||||||||||||||||
Reserve for unfunded commitments | 3,539 | 4,388 | 4,845 | 1,417 | 1,436 | (19 | )% | 146 | % | |||||||||||||||||
Total allowance for credit losses | $ | 119,706 | $ | 120,023 | $ | 111,340 | $ | 98,446 | $ | 96,521 | 0 | % | 24 | % | ||||||||||||
Net charge-offs to average loans and leases (annualized) | 0.12 | % | 0.14 | % | 0.15 | % | 0.21 | % | 0.21 | % | ||||||||||||||||
Recoveries to gross charge-offs | 48.18 | % | 30.98 | % | 28.67 | % | 35.40 | % | 68.61 | % | ||||||||||||||||
Allowance for loan and lease losses to loans and leases | 0.76 | % | 0.76 | % | 0.70 | % | 1.25 | % | 1.23 | % | ||||||||||||||||
Allowance for credit losses to loans and leases | 0.78 | % | 0.79 | % | 0.74 | % | 1.27 | % | 1.25 | % | ||||||||||||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 17
Umpqua Holdings Corporation | |||||||||||
Credit Quality – Allowance for Loan and Lease Losses | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended | % Change | ||||||||||
(Dollars in thousands) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||
Allowance for non-covered credit losses: | |||||||||||
Balance beginning of period | $ | 85,314 | $ | 85,391 | |||||||
Provision for non-covered loan and lease losses | 40,074 | 16,829 | 138 | % | |||||||
Charge-offs | (26,008 | ) | (30,995 | ) | (16 | )% | |||||
Recoveries | 9,525 | 14,089 | (32 | )% | |||||||
Net charge-offs | (16,483 | ) | (16,906 | ) | (3 | )% | |||||
Total allowance for non-covered loan and lease losses | 108,905 | 85,314 | 28 | % | |||||||
Reserve for unfunded commitments | 3,539 | 1,436 | 146 | % | |||||||
Total allowance for non-covered credit losses | $ | 112,444 | $ | 86,750 | 30 | % | |||||
Net charge-offs to average non-covered loans and leases | 0.13 | % | 0.24 | % | |||||||
Recoveries to gross charge-offs | 36.62 | % | 45.46 | % | |||||||
Allowance for non-covered loan losses to covered loans and leases | 0.72 | % | 1.16 | % | |||||||
Allowance for non-covered credit losses to covered loans and leases | 0.75 | % | 1.18 | % | |||||||
Allowance for covered credit losses: | |||||||||||
Balance beginning of period | $ | 9,771 | $ | 18,275 | |||||||
Provision for (recapture of) covered loan and lease losses | 167 | (6,113 | ) | (103 | )% | ||||||
Charge-offs | (4,170 | ) | (4,503 | ) | (7 | )% | |||||
Recoveries | 1,494 | 2,112 | (29 | )% | |||||||
Net charge-offs | (2,676 | ) | (2,391 | ) | 12 | % | |||||
Total allowance for covered loan and lease losses | $ | 7,262 | $ | 9,771 | (26 | )% | |||||
Net charge-offs to average covered loans and leases | 0.88 | % | 0.57 | % | |||||||
Recoveries to gross charge-offs | 35.83 | % | 46.90 | % | |||||||
Allowance for covered loan losses to covered loans and leases | 2.75 | % | 2.61 | % | |||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 18
Umpqua Holdings Corporation | |||||||||||
Credit Quality – Allowance for Loan and Lease Losses | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended | % Change | ||||||||||
(Dollars in thousands) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||
Balance beginning of period | $ | 95,085 | $ | 103,666 | |||||||
Provision for loan and lease losses | 40,241 | 10,716 | 276 | % | |||||||
Charge-offs | (30,178 | ) | (35,498 | ) | (15 | )% | |||||
Recoveries | 11,019 | 16,201 | (32 | )% | |||||||
Net charge-offs | (19,159 | ) | (19,297 | ) | (1 | )% | |||||
Total allowance for loan and lease losses | 116,167 | 95,085 | 22 | % | |||||||
Reserve for unfunded commitments | 3,539 | 1,436 | 146 | % | |||||||
Total allowance for credit losses | $ | 119,706 | $ | 96,521 | 24 | % | |||||
Net charge-offs to average loans and leases (annualized) | 0.15 | % | 0.26 | % | |||||||
Recoveries to gross charge-offs | 36.51 | % | 45.64 | % | |||||||
Allowance for loan losses to loans and leases | 0.76 | % | 1.23 | % | |||||||
Allowance for credit losses to loans and leases | 0.78 | % | 1.25 | % | |||||||
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 19
Umpqua Holdings Corporation | |||||||||||||||||||||
Selected Ratios | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||
Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||
Average Rates: | |||||||||||||||||||||
Yield on loans and leases | 5.79 | % | 5.74 | % | 6.04 | % | 5.40 | % | 5.43 | % | 0.05 | 0.36 | |||||||||
Yield on taxable investments | 2.16 | % | 2.12 | % | 2.29 | % | 2.39 | % | 2.31 | % | 0.04 | (0.15 | ) | ||||||||
Yield on tax-exempt investments (1) | 5.09 | % | 5.12 | % | 5.19 | % | 5.54 | % | 5.56 | % | (0.03 | ) | (0.47 | ) | |||||||
Yield on temporary investments & interest bearing cash | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | — | — | |||||||||
Total yield on earning assets (1) | 4.98 | % | 5.04 | % | 5.30 | % | 4.60 | % | 4.61 | % | (0.06 | ) | 0.37 | ||||||||
Cost of interest bearing deposits | 0.23 | % | 0.22 | % | 0.22 | % | 0.23 | % | 0.25 | % | 0.01 | (0.02 | ) | ||||||||
Cost of securities sold under agreements | |||||||||||||||||||||
to repurchase and fed funds purchased | 0.06 | % | 0.07 | % | 0.25 | % | 0.07 | % | 0.07 | % | (0.01 | ) | (0.01 | ) | |||||||
Cost of term debt | 1.41 | % | 1.35 | % | 1.45 | % | 3.67 | % | 3.68 | % | 0.06 | (2.27 | ) | ||||||||
Cost of junior subordinated debentures | 3.86 | % | 3.87 | % | 3.87 | % | 4.03 | % | 4.04 | % | (0.01 | ) | (0.18 | ) | |||||||
Total cost of interest bearing liabilities | 0.41 | % | 0.40 | % | 0.41 | % | 0.44 | % | 0.46 | % | 0.01 | (0.05 | ) | ||||||||
Net interest spread (1) | 4.57 | % | 4.64 | % | 4.90 | % | 4.16 | % | 4.15 | % | (0.07 | ) | 0.42 | ||||||||
Net interest margin – Consolidated (1) | 4.69 | % | 4.75 | % | 5.01 | % | 4.28 | % | 4.29 | % | (0.06 | ) | 0.40 | ||||||||
Net interest margin – Bank (1) | 4.75 | % | 4.82 | % | 5.07 | % | 4.35 | % | 4.35 | % | (0.07 | ) | 0.40 | ||||||||
As reported (GAAP): | |||||||||||||||||||||
Return on average assets | 0.92 | % | 1.05 | % | 0.34 | % | 0.65 | % | 0.86 | % | (0.13 | ) | 0.06 | ||||||||
Return on average tangible assets | 1.00 | % | 1.15 | % | 0.37 | % | 0.70 | % | 0.92 | % | (0.15 | ) | 0.08 | ||||||||
Return on average common equity | 5.59 | % | 6.29 | % | 2.05 | % | 4.35 | % | 5.73 | % | (0.70 | ) | (0.14 | ) | |||||||
Return on average tangible common equity | 11.08 | % | 12.48 | % | 4.06 | % | 7.86 | % | 10.38 | % | (1.40 | ) | 0.70 | ||||||||
Efficiency ratio – Consolidated | 68.34 | % | 63.15 | % | 82.94 | % | 73.15 | % | 69.12 | % | 5.19 | (0.78 | ) | ||||||||
Efficiency ratio – Bank | 66.34 | % | 61.68 | % | 81.37 | % | 71.18 | % | 67.30 | % | 4.66 | (0.96 | ) | ||||||||
Operating basis (non-GAAP): (2) | |||||||||||||||||||||
Return on average assets | 1.04 | % | 1.16 | % | 1.08 | % | 0.84 | % | 0.95 | % | (0.12 | ) | 0.09 | ||||||||
Return on average tangible assets | 1.13 | % | 1.27 | % | 1.18 | % | 0.90 | % | 1.02 | % | (0.14 | ) | 0.11 | ||||||||
Return on average common equity | 6.33 | % | 6.95 | % | 6.45 | % | 5.61 | % | 6.38 | % | (0.62 | ) | (0.05 | ) | |||||||
Return on average tangible common equity | 12.55 | % | 13.80 | % | 12.76 | % | 10.13 | % | 11.56 | % | (1.25 | ) | 0.99 | ||||||||
Efficiency ratio – Consolidated | 64.33 | % | 59.83 | % | 60.33 | % | 68.34 | % | 67.66 | % | 4.50 | (3.33 | ) | ||||||||
Efficiency ratio – Bank | 62.71 | % | 58.70 | % | 59.15 | % | 66.60 | % | 66.10 | % | 4.01 | (3.39 | ) | ||||||||
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate.
(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated
debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger
related expenses, net of tax.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 20
Umpqua Holdings Corporation | |||||||||
Selected Ratios | |||||||||
(Unaudited) | |||||||||
Twelve Months Ended | % Change | ||||||||
Dec 31, 2014 | Dec 31, 2013 | Year over Year | |||||||
Average Rates: | |||||||||
Yield on loans and leases | 5.78 | % | 5.31 | % | 0.47 | ||||
Yield on taxable investments | 2.22 | % | 1.76 | % | 0.46 | ||||
Yield on tax-exempt investments (1) | 5.20 | % | 5.46 | % | (0.26 | ) | |||
Yield on temporary investments & interest bearing cash | 0.25 | % | 0.26 | % | (0.01 | ) | |||
Total yield on earning assets (1) | 5.02 | % | 4.38 | % | 0.64 | ||||
Cost of interest bearing deposits | 0.23 | % | 0.31 | % | (0.08 | ) | |||
Cost of securities sold under agreements | |||||||||
to repurchase and fed funds purchased | 0.11 | % | 0.08 | % | 0.03 | ||||
Cost of term debt | 1.57 | % | 3.66 | % | (2.09 | ) | |||
Cost of junior subordinated debentures | 3.89 | % | 4.09 | % | (0.20 | ) | |||
Total cost of interest bearing liabilities | 0.41 | % | 0.51 | % | (0.10 | ) | |||
Net interest spread (1) | 4.61 | % | 3.87 | % | 0.74 | ||||
Net interest margin – Consolidated (1) | 4.73 | % | 4.01 | % | 0.72 | ||||
Net interest margin – Bank (1) | 4.79 | % | 4.08 | % | 0.71 | ||||
As reported (GAAP): | |||||||||
Return on average assets | 0.77 | % | 0.85 | % | (0.08 | ) | |||
Return on average tangible assets | 0.83 | % | 0.91 | % | (0.08 | ) | |||
Return on average common equity | 4.69 | % | 5.64 | % | (0.95 | ) | |||
Return on average tangible common equity | 9.16 | % | 9.78 | % | (0.62 | ) | |||
Efficiency ratio – Consolidated | 71.37 | % | 68.68 | % | 2.69 | ||||
Efficiency ratio – Bank | 69.64 | % | 66.54 | % | 3.10 | ||||
Operating basis (non-GAAP): (2) | |||||||||
Return on average assets | 1.06 | % | 0.92 | % | 0.14 | ||||
Return on average tangible assets | 1.15 | % | 0.98 | % | 0.17 | ||||
Return on average common equity | 6.45 | % | 6.11 | % | 0.34 | ||||
Return on average tangible common equity | 12.62 | % | 10.60 | % | 2.02 | ||||
Efficiency ratio – Consolidated | 62.45 | % | 66.74 | % | (4.29 | ) | |||
Efficiency ratio – Bank | 61.07 | % | 64.86 | % | (3.79 | ) | |||
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate.
(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger related expenses, net of tax.
Umpqua Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 21
Umpqua Holdings Corporation Average Balances | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Temporary investments & interest bearing cash | $ | 1,368,726 | $ | 849,399 | $ | 672,587 | $ | 705,974 | $ | 625,405 | 61 | % | 119 | % | ||||||||||||
Investment securities, taxable | 2,169,504 | 2,307,732 | 2,242,414 | 1,562,849 | 1,664,716 | (6 | )% | 30 | % | |||||||||||||||||
Investment securities, tax-exempt | 326,858 | 330,902 | 315,488 | 231,520 | 236,552 | (1 | )% | 38 | % | |||||||||||||||||
Loans held for sale | 255,830 | 274,834 | 211,694 | 77,234 | 89,553 | (7 | )% | 186 | % | |||||||||||||||||
Loans and leases | 15,300,425 | 15,200,893 | 13,673,887 | 7,732,539 | 7,676,770 | 1 | % | 99 | % | |||||||||||||||||
Total interest earning assets | 19,421,343 | 18,963,760 | 17,116,070 | 10,310,116 | 10,292,996 | 2 | % | 89 | % | |||||||||||||||||
Goodwill & other intangible assets, net | 1,844,084 | 1,841,668 | 1,656,687 | 776,006 | 777,188 | 0 | % | 137 | % | |||||||||||||||||
Total assets | 22,625,461 | 22,220,999 | 20,036,742 | 11,638,357 | 11,624,424 | 2 | % | 95 | % | |||||||||||||||||
Non-interest bearing demand deposits | 4,836,517 | 4,558,672 | 3,963,233 | 2,414,001 | 2,452,554 | 6 | % | 97 | % | |||||||||||||||||
Interest bearing deposits | 12,153,481 | 11,948,731 | 10,948,991 | 6,696,029 | 6,661,933 | 2 | % | 82 | % | |||||||||||||||||
Total deposits | 16,989,998 | 16,507,403 | 14,912,224 | 9,110,030 | 9,114,487 | 3 | % | 86 | % | |||||||||||||||||
Interest bearing liabilities | 13,833,126 | 13,681,205 | 12,521,219 | 7,376,780 | 7,326,763 | 1 | % | 89 | % | |||||||||||||||||
Shareholders’ equity - common | 3,721,003 | 3,712,813 | 3,350,836 | 1,738,680 | 1,734,583 | 0 | % | 115 | % | |||||||||||||||||
Tangible common equity (1) | 1,876,919 | 1,871,145 | 1,694,149 | 962,674 | 957,395 | 0 | % | 96 | % | |||||||||||||||||
Umpqua Holdings Corporation Average Balances | |||||||||||
(Unaudited) | |||||||||||
Twelve Months Ended | % Change | ||||||||||
(Dollars in thousands) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||
Temporary investments & interest bearing cash | $ | 900,851 | $ | 519,000 | 74 | % | |||||
Investment securities, taxable | 2,072,936 | 1,952,611 | 6 | % | |||||||
Investment securities, tax-exempt | 301,535 | 247,010 | 22 | % | |||||||
Loans held for sale | 205,580 | 138,383 | 49 | % | |||||||
Loans and leases | 13,003,762 | 7,367,602 | 76 | % | |||||||
Total interest earning assets | 16,484,664 | 10,224,606 | 61 | % | |||||||
Goodwill & other intangible assets, net | 1,533,403 | 731,525 | 110 | % | |||||||
Total assets | 19,169,098 | 11,507,688 | 67 | % | |||||||
Non-interest bearing demand deposits | 3,951,429 | 2,284,996 | 73 | % | |||||||
Interest bearing deposits | 10,455,902 | 6,772,677 | 54 | % | |||||||
Total deposits | 14,407,331 | 9,057,673 | 59 | % | |||||||
Interest bearing liabilities | 11,875,802 | 7,392,348 | 61 | % | |||||||
Shareholders’ equity - common | 3,137,858 | 1,729,083 | 81 | % | |||||||
Tangible common equity (1) | 1,604,455 | 997,558 | 61 | % | |||||||
(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 Reports Fourth Quarter and Full-Year 2014 Results
January 28, 2015
Page 22
Umpqua Holdings Corporation Residential Mortgage Banking Activity | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||
Residential mortgage servicing rights: | ||||||||||||||||||||||||||
Residential mortgage loans serviced for others | $ | 11,590,310 | $ | 11,300,947 | $ | 10,838,313 | $ | 4,496,662 | $ | 4,362,499 | 3 | % | 166 | % | ||||||||||||
MSR asset, at fair value | 117,259 | 118,725 | 114,192 | 49,220 | 47,765 | (1 | )% | 145 | % | |||||||||||||||||
MSR as % of serviced portfolio | 1.01 | % | 1.05 | % | 1.05 | % | 1.09 | % | 1.09 | % | ||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 18,378 | $ | 24,097 | $ | 22,142 | $ | 8,421 | $ | 9,915 | (24 | )% | 85 | % | ||||||||||||
Servicing | 6,306 | 6,178 | 5,359 | 2,970 | 2,911 | 2 | % | 117 | % | |||||||||||||||||
Change in fair value of MSR asset | (8,195 | ) | (4,279 | ) | (3,160 | ) | (952 | ) | 3,131 | 92 | % | nm | ||||||||||||||
Total | $ | 16,489 | $ | 25,996 | $ | 24,341 | $ | 10,439 | $ | 15,957 | (37 | )% | 3 | % | ||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - total | $ | 941,912 | $ | 988,031 | $ | 894,955 | $ | 293,175 | $ | 359,569 | (5 | )% | 162 | % | ||||||||||||
Closed loan volume - for sale | $ | 622,133 | $ | 695,877 | $ | 623,727 | $ | 204,356 | $ | 271,541 | (11 | )% | 129 | % | ||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on total volume | 1.95 | % | 2.44 | % | 2.47 | % | 2.87 | % | 2.76 | % | (0.49 | ) | (0.81 | ) | ||||||||||||
Based on for sale volume | 2.95 | % | 3.46 | % | 3.55 | % | 4.12 | % | 3.65 | % | (0.51 | ) | (0.70 | ) | ||||||||||||
Twelve Months Ended | % Change | |||||||||||||||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 73,038 | $ | 66,117 | 10 | % | ||||||||||||||||||||
Servicing | 20,813 | 10,395 | 100 | % | ||||||||||||||||||||||
Change in fair value of MSR asset | (16,586 | ) | 2,373 | (799 | )% | |||||||||||||||||||||
Total | $ | 77,265 | $ | 78,885 | (2 | )% | ||||||||||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - total | $ | 3,118,073 | $ | 1,930,877 | 61 | % | ||||||||||||||||||||
Closed loan volume - for sale | 2,146,828 | 1,599,683 | 34 | % | ||||||||||||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on total volume | 2.34 | % | 3.42 | % | (1.08 | ) | ||||||||||||||||||||
Based on for sale volume | 3.40 | % | 4.13 | % | (0.73 | ) | ||||||||||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
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