OREGON (State or Other Jurisdiction of Incorporation or Organization) | 001-34624 (Commission File Number) | 93-1261319 (I.R.S. Employer Identification Number) |
[ ] | 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. |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits. |
(d) | EXHIBITS |
99.1 Press Release announcing first quarter 2015 financial results dated April 15, 2015 | |
99.2 First quarter 2015 Investor Presentation |
UMPQUA HOLDINGS CORPORATION (Registrant) | |
Dated: April 15, 2015 | By:/s/ Andrew H. Ognall Andrew H. Ognall Executive Vice President, General Counsel and Secretary |
Exhibit Number | Description | |
99.1 | Press Release announcing first quarter 2015 financial results dated April 15, 2015 | |
99.2 | First quarter 2015 Investor Presentation | |
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 |
• | First quarter of 2015 operating earnings1 of $56.4 million: |
◦ | Net interest income decreased by $11.0 million from the prior quarter, driven by a $6.4 million decrease in interest income related to the Sterling credit discount accretion and two fewer days in the quarter; |
◦ | Provision for loan and lease losses increased by $8.5 million from the prior quarter, driven by higher net charge-offs and stronger loan growth; |
◦ | Mortgage banking revenue increased by $11.7 million from the prior quarter, driven by an improvement in gain on sale margin and higher volume, partially offset by a $1.5 million increase in the loss related to the change in fair value of the mortgage servicing rights (MSR); |
◦ | Non-interest expense (excluding merger-related expense) decreased by $1.7 million from the prior quarter, driven by synergies from reduced store costs, lower services and marketing expenses, and a lower loss on other real estate owned, partially offset by higher variable mortgage banking expense primarily reflected in salaries and benefits; |
• | Continued growth in loans and deposits: |
◦ | Loans and leases (gross of sales) grew by $294.1 million, or 8% annualized, from the prior quarter. This growth was partially offset by loan sales of $72.8 million, for net growth of $221.2 million, or 6% annualized; |
◦ | Deposits grew by $330.5 million, or 8% annualized, from the prior quarter; |
• | Capital and liquidity position remained strong: |
◦ | Tangible book value per common share1 increased to $8.88, from $8.79 in the prior quarter; |
◦ | Under Basel III rules, estimated total risk-based capital ratio of 14.3% and estimated Tier 1 common to risk weighted assets ratio of 10.8%; |
◦ | Declared a dividend of $0.15 per common share, and |
◦ | Interest bearing cash of $1.1 billion, as compared to $1.3 billion in the prior quarter. |
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Net earnings available to common shareholders | $ | 47,045 | $ | 52,436 | $ | 58,741 | $ | 17,459 | $ | 18,538 | (10 | )% | 154 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value, net of tax (1) | 933 | 953 | 955 | 821 | 325 | (2 | )% | 187 | % | |||||||||||||||||
Merger related expenses, net of tax (1) | 8,449 | 6,038 | 5,274 | 35,926 | 5,073 | 40 | % | 67 | % | |||||||||||||||||
Operating earnings | $ | 56,427 | $ | 59,427 | $ | 64,970 | $ | 54,206 | $ | 23,936 | (5 | )% | 136 | % | ||||||||||||
Earnings per diluted share: | ||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.21 | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.16 | (13 | )% | 31 | % | ||||||||||||
Operating earnings | $ | 0.26 | $ | 0.27 | $ | 0.30 | $ | 0.27 | $ | 0.21 | (4 | )% | 24 | % | ||||||||||||
(1) Income tax effect of pro forma operating earnings adjustments at 40% for tax-deductible items. | ||||||||||||||||||||||||||
nm = not meaningful. |
(Dollars in thousands, except per share data) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||||||||||
Total shareholders' equity | $ | 3,800,970 | $ | 3,777,332 | $ | 3,748,807 | $ | 3,725,465 | $ | 1,730,560 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill and other intangible assets, net | 1,842,567 | 1,842,958 | 1,845,242 | 1,842,670 | 775,488 | |||||||||||||||
Tangible common shareholders' equity | $ | 1,958,403 | $ | 1,934,374 | $ | 1,903,565 | $ | 1,882,795 | $ | 955,072 | ||||||||||
Total assets | $ | 22,953,158 | $ | 22,609,609 | $ | 22,484,358 | $ | 22,038,634 | $ | 11,834,810 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill and other intangible assets, net | 1,842,567 | 1,842,958 | 1,845,242 | 1,842,670 | 775,488 | |||||||||||||||
Tangible assets | $ | 21,110,591 | $ | 20,766,651 | $ | 20,639,116 | $ | 20,195,964 | $ | 11,059,322 | ||||||||||
Common shares outstanding at period end | 220,453,729 | 220,161,120 | 217,261,722 | 217,190,721 | 112,319,525 | |||||||||||||||
Tangible common equity ratio | 9.28 | % | 9.31 | % | 9.22 | % | 9.32 | % | 8.64 | % | ||||||||||
Tangible book value per common share | $ | 8.88 | $ | 8.79 | $ | 8.76 | $ | 8.67 | $ | 8.50 |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(In thousands, except per share data) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans and leases | $ | 215,721 | $ | 226,853 | $ | 223,972 | $ | 208,992 | $ | 103,986 | (5 | )% | 107 | % | ||||||||||||
Interest and dividends on investments: | ||||||||||||||||||||||||||
Taxable | 11,551 | 11,629 | 12,136 | 12,728 | 9,291 | (1 | )% | 24 | % | |||||||||||||||||
Exempt from federal income tax | 2,720 | 2,746 | 2,790 | 2,697 | 2,112 | (1 | )% | 29 | % | |||||||||||||||||
Dividends | 101 | 66 | 81 | 128 | 50 | 53 | % | 102 | % | |||||||||||||||||
Temporary investments & interest bearing deposits | 825 | 857 | 544 | 422 | 441 | (4 | )% | 87 | % | |||||||||||||||||
Total interest income | 230,918 | 242,151 | 239,523 | 224,967 | 115,880 | (5 | )% | 99 | % | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 7,103 | 7,119 | 6,773 | 6,075 | 3,848 | 0 | % | 85 | % | |||||||||||||||||
Repurchase agreements and fed funds purchased | 48 | 48 | 54 | 203 | 41 | 0 | % | 17 | % | |||||||||||||||||
Term debt | 3,464 | 3,570 | 3,586 | 3,364 | 2,273 | (3 | )% | 52 | % | |||||||||||||||||
Junior subordinated debentures | 3,337 | 3,399 | 3,394 | 3,066 | 1,880 | (2 | )% | 78 | % | |||||||||||||||||
Total interest expense | 13,952 | 14,136 | 13,807 | 12,708 | 8,042 | (1 | )% | 73 | % | |||||||||||||||||
Net interest income | 216,966 | 228,015 | 225,716 | 212,259 | 107,838 | (5 | )% | 101 | % | |||||||||||||||||
Provision for loan and lease losses | 13,695 | 5,241 | 14,333 | 14,696 | 5,971 | 161 | % | 129 | % | |||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Service charges | 14,296 | 15,472 | 16,090 | 15,371 | 7,767 | (8 | )% | 84 | % | |||||||||||||||||
Brokerage fees | 4,769 | 4,960 | 4,882 | 4,566 | 3,725 | (4 | )% | 28 | % | |||||||||||||||||
Residential mortgage banking revenue, net | 28,227 | 16,489 | 25,996 | 24,341 | 10,439 | 71 | % | 170 | % | |||||||||||||||||
Net gain on investment securities | 116 | 1,026 | 902 | 976 | — | (89 | )% | nm | ||||||||||||||||||
Loss on junior subordinated debentures carried at fair value | (1,555 | ) | (1,589 | ) | (1,590 | ) | (1,369 | ) | (542 | ) | (2 | )% | 187 | % | ||||||||||||
Change in FDIC indemnification asset | (1,286 | ) | (1,982 | ) | (2,728 | ) | (5,601 | ) | (4,840 | ) | (35 | )% | (73 | )% | ||||||||||||
BOLI income | 2,781 | 1,971 | 2,161 | 1,967 | 736 | 41 | % | 278 | % | |||||||||||||||||
Other income | 16,247 | 13,958 | 16,452 | 5,215 | 5,953 | 16 | % | 173 | % | |||||||||||||||||
Total non-interest income | 63,595 | 50,305 | 62,165 | 45,466 | 23,238 | 26 | % | 174 | % | |||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 107,923 | 104,039 | 102,564 | 95,560 | 53,218 | 4 | % | 103 | % | |||||||||||||||||
Net occupancy and equipment | 32,150 | 32,987 | 33,029 | 28,746 | 16,501 | (3 | )% | 95 | % | |||||||||||||||||
Intangible amortization | 2,806 | 3,102 | 3,103 | 2,808 | 1,194 | (10 | )% | 135 | % | |||||||||||||||||
FDIC assessments | 3,214 | 3,522 | 3,038 | 2,575 | 1,863 | (9 | )% | 73 | % | |||||||||||||||||
Net loss (gain) on other real estate owned | 1,814 | 3,609 | 313 | 258 | (64 | ) | (50 | )% | nm | |||||||||||||||||
Merger related expenses | 14,082 | 10,171 | 8,632 | 57,531 | 5,983 | 38 | % | 135 | % | |||||||||||||||||
Other expense | 31,109 | 33,426 | 31,879 | 26,653 | 17,823 | (7 | )% | 75 | % | |||||||||||||||||
Total non-interest expense | 193,098 | 190,856 | 182,558 | 214,131 | 96,518 | 1 | % | 100 | % | |||||||||||||||||
Income before provision for income taxes | 73,768 | 82,223 | 90,990 | 28,898 | 28,587 | (10 | )% | 158 | % | |||||||||||||||||
Provision for income taxes | 26,639 | 29,641 | 32,107 | 11,356 | 9,936 | (10 | )% | 168 | % | |||||||||||||||||
Net income | 47,129 | 52,582 | 58,883 | 17,542 | 18,651 | (10 | )% | 153 | % | |||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | 84 | 146 | 142 | 83 | 113 | (42 | )% | (26 | )% | |||||||||||||||||
Net earnings available to common shareholders | $ | 47,045 | $ | 52,436 | $ | 58,741 | $ | 17,459 | $ | 18,538 | (10 | )% | 154 | % | ||||||||||||
Weighted average basic shares outstanding | 220,349 | 218,963 | 217,245 | 196,312 | 112,170 | 1 | % | 96 | % | |||||||||||||||||
Weighted average diluted shares outstanding | 221,051 | 219,974 | 218,941 | 197,638 | 112,367 | 0 | % | 97 | % | |||||||||||||||||
Earnings per common share – basic | $ | 0.21 | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | (13 | )% | 24 | % | ||||||||||||
Earnings per common share – diluted | $ | 0.21 | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.16 | (13 | )% | 31 | % | ||||||||||||
nm = not meaningful |
Umpqua Holdings Corporation Consolidated Balance Sheets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||
(In thousands, except per share data) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 292,558 | $ | 282,455 | $ | 266,624 | $ | 347,152 | $ | 196,963 | 4 | % | 49 | % | ||||||||||||
Interest bearing deposits | 1,087,913 | 1,322,214 | 1,176,599 | 492,739 | 887,620 | (18 | )% | 23 | % | |||||||||||||||||
Temporary investments | 403 | 502 | 487 | 529 | 525 | (20 | )% | (23 | )% | |||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Trading, at fair value | 10,452 | 9,999 | 9,727 | 9,420 | 4,498 | 5 | % | 132 | % | |||||||||||||||||
Available for sale, at fair value | 2,535,121 | 2,298,555 | 2,400,061 | 2,588,969 | 1,701,730 | 10 | % | 49 | % | |||||||||||||||||
Held to maturity, at amortized cost | 4,953 | 5,211 | 5,356 | 5,519 | 5,465 | (5 | )% | (9 | )% | |||||||||||||||||
Loans held for sale | 406,487 | 286,802 | 265,800 | 328,968 | 73,106 | 42 | % | 456 | % | |||||||||||||||||
Loans and leases | 15,548,957 | 15,327,732 | 15,259,201 | 15,136,455 | 7,763,691 | 1 | % | 100 | % | |||||||||||||||||
Allowance for loan and lease losses | (120,104 | ) | (116,167 | ) | (115,635 | ) | (106,495 | ) | (97,029 | ) | 3 | % | 24 | % | ||||||||||||
Loans and leases, net | 15,428,853 | 15,211,565 | 15,143,566 | 15,029,960 | 7,666,662 | 1 | % | 101 | % | |||||||||||||||||
Restricted equity securities | 117,218 | 119,334 | 120,759 | 122,194 | 29,948 | (2 | )% | 291 | % | |||||||||||||||||
Premises and equipment, net | 322,925 | 317,834 | 314,364 | 310,407 | 180,199 | 2 | % | 79 | % | |||||||||||||||||
Goodwill | 1,788,640 | 1,786,225 | 1,785,407 | 1,779,732 | 764,304 | 0 | % | 134 | % | |||||||||||||||||
Other intangible assets, net | 53,927 | 56,733 | 59,835 | 62,938 | 11,184 | (5 | )% | 382 | % | |||||||||||||||||
Residential mortgage servicing rights, at fair value | 116,365 | 117,259 | 118,725 | 114,192 | 49,220 | (1 | )% | 136 | % | |||||||||||||||||
Other real estate owned | 32,064 | 37,942 | 34,456 | 27,982 | 23,780 | (15 | )% | 35 | % | |||||||||||||||||
FDIC indemnification asset | 1,861 | 4,417 | 7,811 | 11,293 | 18,362 | (58 | )% | (90 | )% | |||||||||||||||||
Bank owned life insurance | 294,697 | 294,296 | 293,511 | 292,714 | 97,589 | 0 | % | 202 | % | |||||||||||||||||
Deferred tax assets, net | 198,778 | 230,258 | 251,670 | 260,686 | 12,287 | (14 | )% | nm | ||||||||||||||||||
Other assets | 259,943 | 228,008 | 229,600 | 253,240 | 111,368 | 14 | % | 133 | % | |||||||||||||||||
Total assets | $ | 22,953,158 | $ | 22,609,609 | $ | 22,484,358 | $ | 22,038,634 | $ | 11,834,810 | 2 | % | 94 | % | ||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 17,222,566 | $ | 16,892,099 | $ | 16,727,610 | $ | 16,323,000 | $ | 9,273,583 | 2 | % | 86 | % | ||||||||||||
Securities sold under agreements to repurchase | 321,202 | 313,321 | 339,367 | 315,025 | 262,483 | 3 | % | 22 | % | |||||||||||||||||
Term debt | 965,675 | 1,006,395 | 1,057,140 | 1,057,915 | 250,964 | (4 | )% | 285 | % | |||||||||||||||||
Junior subordinated debentures, at fair value | 250,652 | 249,294 | 247,528 | 246,077 | 87,800 | 1 | % | 185 | % | |||||||||||||||||
Junior subordinated debentures, at amortized cost | 101,496 | 101,576 | 101,657 | 101,737 | 101,818 | 0 | % | 0 | % | |||||||||||||||||
Other liabilities | 290,597 | 269,592 | 262,249 | 269,415 | 127,602 | 8 | % | 128 | % | |||||||||||||||||
Total liabilities | 19,152,188 | 18,832,277 | 18,735,551 | 18,313,169 | 10,104,250 | 2 | % | 90 | % | |||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Common stock | 3,521,201 | 3,519,316 | 3,515,621 | 3,512,507 | 1,514,969 | 0 | % | 132 | % | |||||||||||||||||
Retained earnings | 260,128 | 245,948 | 226,601 | 200,514 | 215,770 | 6 | % | 21 | % | |||||||||||||||||
Accumulated other comprehensive income (loss) | 19,641 | 12,068 | 6,585 | 12,444 | (179 | ) | 63 | % | nm | |||||||||||||||||
Total shareholders' equity | 3,800,970 | 3,777,332 | 3,748,807 | 3,725,465 | 1,730,560 | 1 | % | 120 | % | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 22,953,158 | $ | 22,609,609 | $ | 22,484,358 | $ | 22,038,634 | $ | 11,834,810 | 2 | % | 94 | % | ||||||||||||
Common shares outstanding at period end | 220,453,729 | 220,161,120 | 217,261,722 | 217,190,721 | 112,319,525 | 0 | % | 96 | % | |||||||||||||||||
Book value per common share | $ | 17.24 | $ | 17.16 | $ | 17.25 | $ | 17.15 | $ | 15.41 | 0 | % | 12 | % | ||||||||||||
Tangible book value per common share | $ | 8.88 | $ | 8.79 | $ | 8.76 | $ | 8.67 | $ | 8.50 | 1 | % | 4 | % | ||||||||||||
Tangible equity - common | $ | 1,958,403 | $ | 1,934,374 | $ | 1,903,565 | $ | 1,882,795 | $ | 955,072 | 1 | % | 105 | % | ||||||||||||
Tangible common equity to tangible assets | 9.28 | % | 9.31 | % | 9.22 | % | 9.32 | % | 8.64 | % | 0 | % | 7 | % |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Loan & Lease Portfolio | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Loans & leases: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | $ | 3,296,263 | $ | 3,290,610 | $ | 3,423,453 | $ | 3,517,328 | $ | 2,511,770 | 0 | % | 31 | % | ||||||||||||
Owner occupied term, net | 2,594,312 | 2,633,864 | 2,682,870 | 2,714,319 | 1,331,969 | (2 | )% | 95 | % | |||||||||||||||||
Multifamily, net | 2,764,403 | 2,638,618 | 2,565,711 | 2,506,864 | 428,489 | 5 | % | 545 | % | |||||||||||||||||
Commercial construction, net | 238,303 | 258,722 | 247,816 | 264,150 | 232,708 | (8 | )% | 2 | % | |||||||||||||||||
Residential development, net | 81,160 | 81,846 | 76,849 | 94,857 | 96,723 | (1 | )% | (16 | )% | |||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 1,128,986 | 1,102,987 | 1,119,658 | 1,114,315 | 745,813 | 2 | % | 51 | % | |||||||||||||||||
Lines of credit & other, net | 1,266,409 | 1,322,722 | 1,344,741 | 1,330,771 | 1,015,251 | (4 | )% | 25 | % | |||||||||||||||||
Leases & equipment finance, net | 570,492 | 523,114 | 492,221 | 463,784 | 388,418 | 9 | % | 47 | % | |||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 2,330,325 | 2,233,735 | 2,102,333 | 1,976,934 | 672,845 | 4 | % | 246 | % | |||||||||||||||||
Home equity lines & loans, net | 863,269 | 852,478 | 836,054 | 817,391 | 287,491 | 1 | % | 200 | % | |||||||||||||||||
Consumer & other, net | 415,035 | 389,036 | 367,495 | 335,742 | 52,214 | 7 | % | 695 | % | |||||||||||||||||
Total, net of deferred fees and costs | $ | 15,548,957 | $ | 15,327,732 | $ | 15,259,201 | $ | 15,136,455 | $ | 7,763,691 | 1 | % | 100 | % | ||||||||||||
Loan & leases mix: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | 20 | % | 20 | % | 22 | % | 23 | % | 31 | % | ||||||||||||||||
Owner occupied term, net | 17 | % | 17 | % | 18 | % | 18 | % | 17 | % | ||||||||||||||||
Multifamily, net | 17 | % | 17 | % | 17 | % | 17 | % | 6 | % | ||||||||||||||||
Commercial construction, net | 2 | % | 2 | % | 2 | % | 2 | % | 3 | % | ||||||||||||||||
Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 7 | % | 7 | % | 7 | % | 7 | % | 10 | % | ||||||||||||||||
Lines of credit & other, net | 8 | % | 9 | % | 9 | % | 9 | % | 13 | % | ||||||||||||||||
Leases & equipment finance, net | 4 | % | 3 | % | 3 | % | 3 | % | 5 | % | ||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 15 | % | 15 | % | 14 | % | 13 | % | 9 | % | ||||||||||||||||
Home equity lines & loans, net | 6 | % | 6 | % | 5 | % | 5 | % | 4 | % | ||||||||||||||||
Consumer & other, net | 3 | % | 3 | % | 2 | % | 2 | % | 1 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Deposits by Type/Core Deposits | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 4,930,642 | $ | 4,744,804 | $ | 4,741,897 | $ | 4,363,710 | $ | 2,465,606 | 4 | % | 100 | % | ||||||||||||
Demand, interest bearing | 2,085,368 | 2,054,994 | 1,942,792 | 1,869,626 | 1,182,634 | 1 | % | 76 | % | |||||||||||||||||
Money market | 6,287,165 | 6,113,138 | 5,998,339 | 5,973,197 | 3,526,368 | 3 | % | 78 | % | |||||||||||||||||
Savings | 1,022,829 | 971,185 | 952,122 | 912,073 | 578,238 | 5 | % | 77 | % | |||||||||||||||||
Time | 2,896,562 | 3,007,978 | 3,092,460 | 3,204,394 | 1,520,737 | (4 | )% | 90 | % | |||||||||||||||||
Total | $ | 17,222,566 | $ | 16,892,099 | $ | 16,727,610 | $ | 16,323,000 | $ | 9,273,583 | 2 | % | 86 | % | ||||||||||||
Total core deposits (1) | $ | 15,304,001 | $ | 15,126,378 | $ | 14,653,183 | $ | 14,171,946 | $ | 8,205,636 | 1 | % | 87 | % | ||||||||||||
Deposit mix: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 29 | % | 28 | % | 28 | % | 26 | % | 27 | % | ||||||||||||||||
Demand, interest bearing | 12 | % | 12 | % | 12 | % | 11 | % | 13 | % | ||||||||||||||||
Money market | 36 | % | 36 | % | 36 | % | 37 | % | 38 | % | ||||||||||||||||
Savings | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Time | 17 | % | 18 | % | 18 | % | 20 | % | 16 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Number of open accounts: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 368,701 | 367,854 | 366,279 | 363,378 | 190,298 | |||||||||||||||||||||
Demand, interest bearing | 85,082 | 86,135 | 87,223 | 88,162 | 46,291 | |||||||||||||||||||||
Money market | 61,991 | 63,095 | 63,979 | 65,216 | 34,913 | |||||||||||||||||||||
Savings | 150,989 | 150,548 | 150,527 | 149,877 | 84,686 | |||||||||||||||||||||
Time | 52,179 | 53,530 | 54,565 | 56,285 | 22,755 | |||||||||||||||||||||
Total | 718,942 | 721,162 | 722,573 | 722,918 | 378,943 | |||||||||||||||||||||
Average balance per account: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 13.4 | $ | 12.9 | $ | 12.9 | $ | 12.3 | $ | 13.0 | ||||||||||||||||
Demand, interest bearing | 24.5 | 23.9 | 22.3 | 21.2 | 25.5 | |||||||||||||||||||||
Money market | 101.4 | 96.9 | 93.8 | 91.6 | 101.0 | |||||||||||||||||||||
Savings | 6.8 | 6.5 | 6.3 | 6.1 | 6.8 | |||||||||||||||||||||
Time | 55.5 | 56.2 | 56.7 | 56.9 | 66.8 | |||||||||||||||||||||
Total | $ | 24.0 | $ | 23.4 | $ | 23.2 | $ | 22.7 | $ | 24.5 |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Non-performing Assets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Non-performing assets: | ||||||||||||||||||||||||||
Loans and leases on non-accrual status | $ | 40,246 | $ | 52,041 | $ | 42,397 | $ | 48,358 | $ | 37,884 | (23 | )% | 6 | % | ||||||||||||
Loans and leases past due 90+ days & accruing | 10,416 | 7,512 | 7,416 | 4,919 | 2,269 | 39 | % | 359 | % | |||||||||||||||||
Total non-performing loans and leases | 50,662 | 59,553 | 49,813 | 53,277 | 40,153 | (15 | )% | 26 | % | |||||||||||||||||
Other real estate owned | 32,064 | 37,942 | 34,456 | 27,982 | 23,780 | (15 | )% | 35 | % | |||||||||||||||||
Total | $ | 82,726 | $ | 97,495 | $ | 84,269 | $ | 81,259 | $ | 63,933 | (15 | )% | 29 | % | ||||||||||||
Performing restructured loans and leases | $ | 60,896 | $ | 54,836 | $ | 63,507 | $ | 67,464 | $ | 67,897 | 11 | % | (10 | )% | ||||||||||||
Loans and leases past due 31-89 days | $ | 20,488 | $ | 24,659 | $ | 34,025 | $ | 28,913 | $ | 29,416 | (17 | )% | (30 | )% | ||||||||||||
Loans and leases past due 31-89 days to total loans and leases | 0.13 | % | 0.16 | % | 0.22 | % | 0.19 | % | 0.38 | % | ||||||||||||||||
Non-performing loans and leases to total loans and leases | 0.33 | % | 0.39 | % | 0.33 | % | 0.35 | % | 0.52 | % | ||||||||||||||||
Non-performing assets to total assets | 0.36 | % | 0.43 | % | 0.37 | % | 0.37 | % | 0.54 | % |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 116,167 | $ | 115,635 | $ | 106,495 | $ | 97,029 | $ | 95,085 | ||||||||||||||||
Provision for loan and lease losses | 13,695 | 5,241 | 14,333 | 14,696 | 5,971 | 161 | % | 129 | % | |||||||||||||||||
Charge-offs | (13,603 | ) | (9,088 | ) | (7,524 | ) | (7,332 | ) | (6,234 | ) | 50 | % | 118 | % | ||||||||||||
Recoveries | 3,845 | 4,379 | 2,331 | 2,102 | 2,207 | (12 | )% | 74 | % | |||||||||||||||||
Net charge-offs | (9,758 | ) | (4,709 | ) | (5,193 | ) | (5,230 | ) | (4,027 | ) | 107 | % | 142 | % | ||||||||||||
Total allowance for loan and lease losses | 120,104 | 116,167 | 115,635 | 106,495 | 97,029 | 3 | % | 24 | % | |||||||||||||||||
Reserve for unfunded commitments | 3,194 | 3,539 | 4,388 | 4,845 | 1,417 | |||||||||||||||||||||
Total allowance for credit losses | $ | 123,298 | $ | 119,706 | $ | 120,023 | $ | 111,340 | $ | 98,446 | ||||||||||||||||
Net charge-offs to average loans and leases (annualized) | 0.26 | % | 0.12 | % | 0.14 | % | 0.15 | % | 0.21 | % | ||||||||||||||||
Recoveries to gross charge-offs | 28.27 | % | 48.18 | % | 30.98 | % | 28.67 | % | 35.40 | % | ||||||||||||||||
Allowance for loan and lease losses to loans and leases | 0.77 | % | 0.76 | % | 0.76 | % | 0.70 | % | 1.25 | % | ||||||||||||||||
Allowance for credit losses to loans and leases | 0.79 | % | 0.78 | % | 0.79 | % | 0.74 | % | 1.27 | % |
Umpqua Holdings Corporation | |||||||||||||||||||||
Selected Ratios | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||
Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||
Average Rates: | |||||||||||||||||||||
Yield on loans and leases | 5.64 | % | 5.82 | % | 5.78 | % | 6.06 | % | 5.41 | % | (0.18 | ) | 0.23 | ||||||||
Yield on loans held for sale | 3.95 | % | 4.01 | % | 3.86 | % | 4.30 | % | 4.04 | % | (0.06 | ) | (0.09 | ) | |||||||
Yield on taxable investments | 2.10 | % | 2.16 | % | 2.12 | % | 2.29 | % | 2.39 | % | (0.06 | ) | (0.29 | ) | |||||||
Yield on tax-exempt investments (1) | 5.10 | % | 5.09 | % | 5.12 | % | 5.19 | % | 5.54 | % | 0.01 | (0.44 | ) | ||||||||
Yield on temporary investments & interest bearing cash | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | — | — | |||||||||
Total yield on earning assets (1) | 4.84 | % | 4.98 | % | 5.04 | % | 5.30 | % | 4.60 | % | (0.14 | ) | 0.24 | ||||||||
Cost of interest bearing deposits | 0.24 | % | 0.23 | % | 0.22 | % | 0.22 | % | 0.23 | % | 0.01 | 0.01 | |||||||||
Cost of securities sold under agreements | |||||||||||||||||||||
to repurchase and fed funds purchased | 0.06 | % | 0.06 | % | 0.07 | % | 0.25 | % | 0.07 | % | — | (0.01 | ) | ||||||||
Cost of term debt | 1.42 | % | 1.41 | % | 1.35 | % | 1.45 | % | 3.67 | % | 0.01 | (2.25 | ) | ||||||||
Cost of junior subordinated debentures | 3.86 | % | 3.86 | % | 3.87 | % | 3.87 | % | 4.03 | % | — | (0.17 | ) | ||||||||
Total cost of interest bearing liabilities | 0.41 | % | 0.41 | % | 0.40 | % | 0.41 | % | 0.44 | % | — | (0.03 | ) | ||||||||
Net interest spread (1) | 4.43 | % | 4.57 | % | 4.64 | % | 4.90 | % | 4.16 | % | (0.14 | ) | 0.27 | ||||||||
Net interest margin – Consolidated (1) | 4.55 | % | 4.69 | % | 4.75 | % | 5.01 | % | 4.28 | % | (0.14 | ) | 0.27 | ||||||||
Net interest margin – Bank (1) | 4.62 | % | 4.75 | % | 4.82 | % | 5.07 | % | 4.35 | % | (0.13 | ) | 0.27 | ||||||||
As reported (GAAP): | |||||||||||||||||||||
Return on average assets | 0.84 | % | 0.92 | % | 1.05 | % | 0.35 | % | 0.65 | % | (0.08 | ) | 0.19 | ||||||||
Return on average tangible assets | 0.92 | % | 1.00 | % | 1.14 | % | 0.38 | % | 0.69 | % | (0.08 | ) | 0.23 | ||||||||
Return on average common equity | 5.02 | % | 5.59 | % | 6.28 | % | 2.09 | % | 4.32 | % | (0.57 | ) | 0.70 | ||||||||
Return on average tangible common equity | 9.76 | % | 11.08 | % | 12.46 | % | 4.13 | % | 7.81 | % | (1.32 | ) | 1.95 | ||||||||
Efficiency ratio – Consolidated | 68.48 | % | 68.23 | % | 63.10 | % | 82.64 | % | 73.03 | % | 0.25 | (4.55 | ) | ||||||||
Efficiency ratio – Bank | 66.84 | % | 66.23 | % | 61.63 | % | 81.08 | % | 71.06 | % | 0.61 | (4.22 | ) | ||||||||
Operating basis (non-GAAP): (2) | |||||||||||||||||||||
Return on average assets | 1.01 | % | 1.04 | % | 1.16 | % | 1.08 | % | 0.83 | % | (0.03 | ) | 0.18 | ||||||||
Return on average tangible assets | 1.10 | % | 1.13 | % | 1.26 | % | 1.18 | % | 0.89 | % | (0.03 | ) | 0.21 | ||||||||
Return on average common equity | 6.03 | % | 6.34 | % | 6.94 | % | 6.49 | % | 5.58 | % | (0.31 | ) | 0.45 | ||||||||
Return on average tangible common equity | 11.71 | % | 12.56 | % | 13.78 | % | 12.83 | % | 10.08 | % | (0.85 | ) | 1.63 | ||||||||
Efficiency ratio – Consolidated | 63.14 | % | 64.23 | % | 59.79 | % | 60.12 | % | 68.22 | % | (1.09 | ) | (5.08 | ) | |||||||
Efficiency ratio – Bank | 61.86 | % | 62.61 | % | 58.65 | % | 58.94 | % | 66.48 | % | (0.75 | ) | (4.62 | ) |
Umpqua Holdings Corporation Average Balances | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Temporary investments & interest bearing cash | $ | 1,323,671 | $ | 1,368,726 | $ | 849,399 | $ | 672,587 | $ | 705,974 | (3 | )% | 87 | % | ||||||||||||
Investment securities, taxable | 2,222,174 | 2,169,504 | 2,307,732 | 2,242,414 | 1,562,849 | 2 | % | 42 | % | |||||||||||||||||
Investment securities, tax-exempt | 323,852 | 326,858 | 330,902 | 315,488 | 231,520 | (1 | )% | 40 | % | |||||||||||||||||
Loans held for sale | 262,777 | 255,830 | 274,834 | 211,694 | 77,234 | 3 | % | 240 | % | |||||||||||||||||
Loans and leases | 15,334,555 | 15,300,425 | 15,200,893 | 13,673,887 | 7,732,539 | 0 | % | 98 | % | |||||||||||||||||
Total interest earning assets | 19,467,029 | 19,421,343 | 18,963,760 | 17,116,070 | 10,310,116 | 0 | % | 89 | % | |||||||||||||||||
Goodwill & other intangible assets, net | 1,842,390 | 1,844,084 | 1,841,668 | 1,656,687 | 776,006 | 0 | % | 137 | % | |||||||||||||||||
Total assets | 22,687,515 | 22,625,461 | 22,220,999 | 20,036,742 | 11,638,357 | 0 | % | 95 | % | |||||||||||||||||
Non-interest bearing demand deposits | 4,808,062 | 4,836,517 | 4,558,672 | 3,963,233 | 2,414,001 | (1 | )% | 99 | % | |||||||||||||||||
Interest bearing deposits | 12,187,132 | 12,153,481 | 11,948,731 | 10,948,991 | 6,696,029 | 0 | % | 82 | % | |||||||||||||||||
Total deposits | 16,995,194 | 16,989,998 | 16,507,403 | 14,912,224 | 9,110,030 | 0 | % | 87 | % | |||||||||||||||||
Interest bearing liabilities | 13,838,515 | 13,833,126 | 13,681,205 | 12,521,219 | 7,376,780 | 0 | % | 88 | % | |||||||||||||||||
Shareholders’ equity - common | 3,797,108 | 3,721,003 | 3,712,813 | 3,350,836 | 1,738,680 | 2 | % | 118 | % | |||||||||||||||||
Tangible common equity (1) | 1,954,718 | 1,876,919 | 1,871,145 | 1,694,149 | 962,674 | 4 | % | 103 | % |
Umpqua Holdings Corporation Residential Mortgage Banking Activity | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Seq. Quarter | Year over Year | |||||||||||||||||||
Residential mortgage servicing rights: | ||||||||||||||||||||||||||
Residential mortgage loans serviced for others | $ | 11,874,910 | $ | 11,590,310 | $ | 11,300,947 | $ | 10,838,313 | $ | 4,496,662 | 2 | % | 164 | % | ||||||||||||
MSR asset, at fair value | 116,365 | 117,259 | 118,725 | 114,192 | 49,220 | (1 | )% | 136 | % | |||||||||||||||||
MSR as % of serviced portfolio | 0.98 | % | 1.01 | % | 1.05 | % | 1.05 | % | 1.09 | % | ||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 31,498 | $ | 18,378 | $ | 24,097 | $ | 22,142 | $ | 8,421 | 71 | % | 274 | % | ||||||||||||
Servicing | 6,457 | 6,306 | 6,178 | 5,359 | 2,970 | 2 | % | 117 | % | |||||||||||||||||
Change in fair value of MSR asset | (9,728 | ) | (8,195 | ) | (4,279 | ) | (3,160 | ) | (952 | ) | 19 | % | 922 | % | ||||||||||||
Total | $ | 28,227 | $ | 16,489 | $ | 25,996 | $ | 24,341 | $ | 10,439 | 71 | % | 170 | % | ||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - portfolio | $ | 311,149 | $ | 319,779 | $ | 292,154 | $ | 271,228 | $ | 88,819 | (3 | )% | 250 | % | ||||||||||||
Closed loan volume - for sale | 862,155 | 622,133 | 695,877 | 623,727 | 204,356 | 39 | % | 322 | % | |||||||||||||||||
Closed loan volume - total | $ | 1,173,304 | $ | 941,912 | $ | 988,031 | $ | 894,955 | $ | 293,175 | 5 | % | 237 | % | ||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on for sale volume | 3.65 | % | 2.95 | % | 3.46 | % | 3.55 | % | 4.12 | % | 0.70 | (0.47 | ) | |||||||||||||