EX-99.1 2 umpqq12015ex991earningsrel.htm PRESS RELEASE ANNOUNCING FIRST QUARTER 2015 FINANCIAL RESULTS UMPQ Q1 2015 ex 99.1 Earnings Release

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 FIRST QUARTER 2015 RESULTS

Operating earnings1 of $56.4 million, or $0.26 per share
Loan and lease (gross of sales) growth of $294 million, or 8% annualized
Deposit growth of $330 million, or 8% annualized
Core system conversion completed April 2015
 
PORTLAND, Ore. – April 15, 2015 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings available to common shareholders of $47.0 million for the first quarter of 2015, as compared to $52.4 million for the fourth quarter of 2014 and $18.5 million for the first quarter of 2014. Earnings per diluted common share were $0.21 for the first quarter of 2015, as compared to $0.24 for the fourth quarter of 2014 and $0.16 for the first quarter of 2014.

Operating earnings1, 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 $56.4 million for the first quarter of 2015, as compared to $59.4 million for the fourth quarter of 2014 and $23.9 million for the first quarter of 2014. Operating earnings per diluted common share were $0.26 for the first quarter of 2015, as compared to $0.27 for the fourth quarter of 2014 and $0.21 for the first quarter of 2014.

“The results of the first quarter of 2015 reflect Umpqua’s continued focus on disciplined growth while we progress in the completion of integrating Sterling,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “With the core system conversion now behind us, we have turned our attention to the final steps of integration and realizing the remaining expense synergies, which should accelerate over the next two quarters as major obstacles have now been eliminated. We are now able to concentrate more on our growth initiatives, reducing the company's efficiency ratio to below 60%, and continuing to innovate with new technologies and delivery systems.”

Highlights:

•
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;

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 First Quarter 2015 Results
April 15, 2015
Page 2


◦
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.

Balance Sheet
Total consolidated assets were $23.0 billion as of March 31, 2015, as compared to $22.6 billion as of December 31, 2014 and $11.8 billion as of March 31, 2014. Including secured off-balance sheet lines of credit, total available liquidity to the Company was $7.8 billion as of March 31, 2015, representing 34% of total assets and 45% of total deposits.
 
Gross loans and leases were $15.5 billion as of March 31, 2015, an increase of $221.2 million, or 6% annualized, from $15.3 billion as of December 31, 2014. During the first quarter of 2015, the Company had loan sales of $72.8 million, primarily comprised of portfolio residential mortgage loans. Excluding the impact of these sales, gross loan growth was $294.1 million, or 8% annualized.

Total deposits were $17.2 billion as of March 31, 2015, an increase of $330.5 million, or 8% annualized, from $16.9 billion as of December 31, 2014. This increase was primarily driven by an increase in non-interest bearing demand, savings and money market accounts, partially offset by a decrease in time deposits.
 
Net Interest Income
Net interest income was $217.0 million for the first quarter of 2015, down $11.0 million from the prior quarter but up $109.1 million from the same period in the prior year. The decrease from the prior quarter was primarily driven by a $6.4 million decrease in interest income arising from the accretion of the credit discount recorded on the loans acquired from Sterling, along with two fewer days in the quarter. The increase from prior year was primarily driven by the acquisition of Sterling, along with continued organic loan growth. Net interest income for the first quarter of 2015 included $15.2 million in interest income arising from the accretion of the credit discount recorded on the loans acquired from Sterling, as compared to $21.6 million in the prior quarter.

The Company’s net interest margin was 4.55% for the first quarter of 2015, down from 4.69% for the fourth quarter of 2014, but up from 4.28% for the first quarter of 2014. The decrease from the prior quarter was primarily driven by the lower level of Sterling credit discount accretion in interest income. The increase from the prior year was primarily driven by the acquisition of Sterling, and to a lesser degree, a higher yield on interest-earning assets and a lower cost of funds.


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 First Quarter 2015 Results
April 15, 2015
Page 3


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 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 first quarter of 2015, the Company reported $15.2 million of accretion from the Sterling credit discount in interest income. As of March 31, 2015, the purchased non-credit impaired loans had approximately $107.7 million of remaining credit discount that will accrete into interest income over the life of the loans, and the purchased credit impaired loan pools had approximately $61.1 million of remaining total discount.

The allowance for loan and lease losses was $120.1 million, or 0.77% of loans and leases, as of March 31, 2015. To provide better comparability to prior periods, this pro-forma ratio would have been approximately 1.8% after grossing up the allowance for loan and lease losses and the loans and leases by the amount of the remaining credit mark remaining as of quarter-end. This compares to a ratio of approximately 2.0% as of December 31, 2014.

The provision for loan and lease losses was $13.7 million for the first quarter of 2015, an increase of $8.5 million from the prior quarter. This increase was primarily driven by an increase in net charge-offs and a higher level of loan growth, as compared to the prior quarter. Charge-offs, net of recoveries, increased to $9.8 million for the first quarter of 2015, as compared to $4.7 million in the prior quarter.

Non-performing assets decreased to $82.7 million, or 0.36% of total assets, as of March 31, 2015, as compared to $97.5 million, or 0.43% of total assets, as of December 31, 2014. Loans past due 31 to 89 days were $20.5 million, or 0.13% of loans and leases, as of March 31, 2015, as compared to $24.7 million, or 0.16% of loans and leases, as of December 31, 2014. Restructured loans on accrual status were $60.9 million as of March 31, 2015, as compared to $54.8 million as of December 31, 2014.

Non-interest Income
Total non-interest income was $63.6 million for the first quarter of 2015, up $13.3 million from the prior quarter and $40.4 million from the same period in the prior year. The increase from the prior quarter was primarily driven by higher mortgage banking revenue and other income. 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 servicing rights (“MSR”) asset, increased by $11.7 million from the prior quarter. Revenue from the origination and sale of residential mortgages increased by $13.1 million from the prior quarter, driven by an improvement in gain on sale margin and higher mortgage originations. Loss related to the change in fair value of the MSR increased to $9.7 million for the first quarter of 2015 due to a decline in interest rates, as compared to $8.2 million for the prior quarter.

The Company’s gain on sale margin was 3.65% for the first quarter of 2015, up from 2.95% in the prior quarter. Of the current quarter’s mortgage production, 45% related to purchase activity, as compared to 63% for the prior quarter and 69% for the same period in the prior year.

As of March 31, 2015, the Company serviced $11.9 billion of residential mortgage loans for others, and its related MSR asset was valued at $116.4 million, or 0.98% of the total serviced portfolio principal balance. This compares to

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 First Quarter 2015 Results
April 15, 2015
Page 4


$11.6 billion of residential mortgage loans for others as of December 31, 2014, with a related MSR asset of $117.3 million, or 1.01% of the total serviced portfolio principal balance. As of March 31, 2014, the Company serviced $4.5 billion of residential mortgage loans serviced for others, and its related MSR asset was valued at $49.2 million, or 1.09% of the total serviced portfolio principal balance.

Non-interest Expense
Non-interest expense was $193.1 million for the first quarter of 2015, which included $14.1 million of merger-related expenses. This compares to $190.9 million, including $10.2 million of merger-related expenses, for the fourth quarter of 2014 and $96.5 million, including $6.0 million of merger-related expenses, for the first quarter of 2014.

Excluding merger-related expenses, non-interest expense decreased by $1.7 million from the prior quarter. This decrease was primarily driven by synergies related to the store consolidations, lower services and marketing expenses, and a lower loss on other real estate owned property. These were partially offset by a $5.0 million increase in variable mortgage expenses, primarily reflected in salaries and benefits, related to higher production in the quarter.

The first quarter of 2015 non-interest expense run-rate does not reflect the full benefit of the anticipated Sterling merger cost synergies. The Company recently completed the core system conversion, and plans to complete the remaining integration over the next two quarters. Cost synergies remain on track to the previously announced target of $87 million (annualized), which is expected to be realized following integration.

Income taxes
The Company recorded a provision for income taxes of $26.6 million for the first quarter of 2015, representing an effective tax rate of 36.1% for the quarter, as compared to $29.6 million, with an effective tax rate of 36.0%, for the fourth quarter of 2014.
 
Capital
As of March 31, 2015, the Company’s tangible book value per common share1 was $8.88 and its ratio of tangible common equity to tangible assets1 was 9.28%, as compared to $8.79 and 9.31%, 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 first quarter of 2015. The Company may repurchase up to 12.0 million of additional shares under this plan.
 
Based on Basel III rules, as of March 31, 2015, the Company’s estimated total risk-based capital ratio was 14.3% and its estimated Tier 1 common to risk weighted assets ratio was 10.8%. As of December 31, 2014, which is based on Basel I rules, the Company's total risk-based capital ratio was 15.2% and its Tier 1 common to risk weighted assets ratio was 11.5%. The Company remains well above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of March 31, 2015 are estimates, pending completion and filing of the Company’s regulatory reports.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that 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

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 First Quarter 2015 Results
April 15, 2015
Page 5


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.
 
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)
 
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.
 
 

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 First Quarter 2015 Results
April 15, 2015
Page 6


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)
 
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 Reports First Quarter 2015 Results
April 15, 2015
Page 7


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 first quarter 2015 earnings conference call on Thursday, April 16, 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 first quarter 2015 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (888) 503-8171 ten minutes prior to the start time and enter conference ID: 5683622. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 5683622. 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 the integration of the merger with Sterling Financial Corporation; timing and amount of merger-related synergies; and credit discount accretion related to the merger. 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 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; the diversion of management time on issues related to merger integration; changes in laws or regulations; and changes in general economic conditions.


Umpqua Reports First Quarter 2015 Results
April 15, 2015
Page 8


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 Reports First Quarter 2015 Results
April 15, 2015
Page 9


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
 %
nm = not meaningful

Umpqua Reports First Quarter 2015 Results
April 15, 2015
Page 10


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 Reports First Quarter 2015 Results
April 15, 2015
Page 11


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

 
 

 
 

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



Umpqua Reports First Quarter 2015 Results
April 15, 2015
Page 12


 
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 Reports First Quarter 2015 Results
April 15, 2015
Page 13


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 Reports First Quarter 2015 Results
April 15, 2015
Page 14


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
)

(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 First Quarter 2015 Results
April 15, 2015
Page 15


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
%
 
 
 
 
 
 
 
(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 First Quarter 2015 Results
April 15, 2015
Page 16


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
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 







###