Allowance for Loan and Lease Loss and Credit Quality (Tables)

6 Months Ended

Jun. 30, 2016

Activity In The Non-Covered Allowance For Loan And Lease Losses

The following table summarizes activity related to the allowance for loan and lease losses by loan and lease portfolio segment for the three and six months ended June 30, 2016 and 2015:



(in thousands)	Three Months Ended June 30, 2016
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	51,450		$	50,781		$	20,897		$	7,115		$	130,243
Charge-offs	(564		)	(9,594		)	(294		)	(2,230		)	(12,682		)
Recoveries	220			1,274			293			1,105			2,892
(Recapture) Provision	(522		)	9,894			(750		)	1,967			10,589
Balance, end of period	$	50,584		$	52,355		$	20,146		$	7,957		$	131,042

	Three Months Ended June 30, 2015
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	55,340		$	44,042		$	16,221		$	4,501		$	120,104
Charge-offs	(2,102		)	(3,714		)	(138		)	(1,488		)	(7,442		)
Recoveries	1,265			1,113			108			669			3,155
Provision	3,840			4,077			1,773			1,564			11,254
Balance, end of period	$	58,343		$	45,518		$	17,964		$	5,246		$	127,071




(in thousands)	Six Months Ended June 30, 2016
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	54,293		$	47,487		$	22,017		$	6,525		$	130,322
Charge-offs	(1,066		)	(14,249		)	(631		)	(4,586		)	(20,532		)
Recoveries	720			2,447			524			2,149			5,840
(Recapture) Provision	(3,363		)	16,670			(1,764		)	3,869			15,412
Balance, end of period	$	50,584		$	52,355		$	20,146		$	7,957		$	131,042

	Six Months Ended June 30, 2015
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	55,184		$	41,216		$	15,922		$	3,845		$	116,167
Charge-offs	(3,431		)	(12,651		)	(536		)	(3,369		)	(19,987		)
Recoveries	1,488			2,184			139			3,189			7,000
Provision	5,102			14,769			2,439			1,581			23,891
Balance, end of period	$	58,343		$	45,518		$	17,964		$	5,246		$	127,071

The valuation allowance on purchased impaired loans was increased by provision expense, which includes amounts related to subsequent deterioration of purchased impaired loans of $1.4 million for both the three and six months ended June 30, 2016, respectively, and $0 and $1.6 million for the three and six months ended June 30, 2015, respectively. The increase due to the provision expense of the valuation allowance on purchased impaired loans was offset by recaptured provision of $71,000 and $847,000 for the three and six months ended June 30, 2016, respectively, and $0 and $185,000 for the three and six months ended June 30, 2015, respectively.

The following table presents the allowance and recorded investment in loans and leases by portfolio segment as of June 30, 2016 and 2015:



(in thousands)	June 30, 2016
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	47,427	$	51,466	$	19,351	$	7,885	$	126,129
Individually evaluated for impairment	363		456		—		—		819
Loans acquired with deteriorated credit quality	2,794		433		795		72		4,094
Total	$	50,584	$	52,355	$	20,146	$	7,957	$	131,042
Loans and leases:
Collectively evaluated for impairment	$	9,139,255	$	3,412,760	$	3,821,080	$	596,460	$	16,969,555
Individually evaluated for impairment	34,906		19,929		—		—		54,835
Loans acquired with deteriorated credit quality	269,799		9,397		50,810		844		330,850
Total	$	9,443,960	$	3,442,086	$	3,871,890	$	597,304	$	17,355,240



(in thousands)	June 30, 2015
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	53,018	$	42,665	$	17,294	$	5,176	$	118,153
Individually evaluated for impairment	774		377		—		—		1,151
Loans acquired with deteriorated credit quality	4,551		2,476		670		70		7,767
Total	$	58,343	$	45,518	$	17,964	$	5,246	$	127,071
Loans and leases:
Collectively evaluated for impairment	$	8,689,870	$	2,924,846	$	3,366,001	$	458,189	$	15,438,906
Individually evaluated for impairment	37,711		26,458		—		—		64,169
Loans acquired with deteriorated credit quality	400,925		19,535		64,097		1,120		485,677
Total	$	9,128,506	$	2,970,839	$	3,430,098	$	459,309	$	15,988,752

Schedule of Reserve for Unfunded Commitments

The following table presents a summary of activity in the RUC and unfunded commitments for the three and six months ended June 30, 2016 and 2015:



(in thousands)	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2016		2015			2016			2015
Balance, beginning of period	$	3,482	$	3,194		$	3,574		$	3,539
Net change to other expense	49		(330		)	(43		)	(675		)
Balance, end of period	$	3,531	$	2,864		$	3,531		$	2,864



(in thousands)
	Total
Unfunded loan and lease commitments:
June 30, 2016	$	4,006,031
June 30, 2015	$	3,216,725

Non-Covered Non-Accrual Loans And Loans Past Due

The following table summarizes our non-accrual loans and leases and loans and leases past due, by loan and lease class, as of June 30, 2016 and December 31, 2015:



(in thousands)	June 30, 2016
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		Greater than 90 Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	1,438	$	304	$	1,023	$	2,765	$	1,492	$	3,373,207	$	3,377,464
Owner occupied term, net	2,903		1,165		505		4,573		5,190		2,572,023		2,581,786
Multifamily, net	516		—		—		516		514		3,003,860		3,004,890
Construction & development, net	—		—		—		—		—		367,879		367,879
Residential development, net	—		—		—		—		—		111,941		111,941
Commercial
Term, net	11		252		317		580		10,748		1,429,376		1,440,704
LOC & other, net	918		945		—		1,863		817		1,114,196		1,116,876
Leases and equipment finance, net	4,402		3,923		933		9,258		6,375		868,873		884,506
Residential
Mortgage, net (2)	—		5,093		30,012		35,105		—		2,846,971		2,882,076
Home equity loans & lines, net	2,682		891		1,310		4,883		—		984,931		989,814
Consumer & other, net	3,082		1,115		271		4,468		—		592,836		597,304
Total, net of deferred fees and costs	$	15,952	$	13,688	$	34,371	$	64,011	$	25,136	$	17,266,093	$	17,355,240

(1) Other includes purchased credit impaired loans of $330.9 million.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $11.3 million at June 30, 2016.



(in thousands)	December 31, 2015
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		Greater than 90 Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases



Commercial real estate
Non-owner occupied term, net	$	924	$	2,776	$	137	$	3,837	$	2,633	$	3,220,366	$	3,226,836
Owner occupied term, net	1,797		1,150		423		3,370		5,928		2,573,576		2,582,874
Multifamily, net	1,394		—		—		1,394		—		3,150,122		3,151,516
Construction & development, net	—		2,959		—		2,959		—		268,160		271,119
Residential development, net	—		—		—		—		—		99,459		99,459
Commercial
Term, net	297		333		—		630		15,185		1,392,861		1,408,676
LOC & other, net	1,907		92		8		2,007		664		1,034,062		1,036,733
Leases and equipment finance, net	2,933		3,499		822		7,254		4,801		717,106		729,161
Residential
Mortgage, net (2)	31		2,444		29,233		31,708		—		2,877,598		2,909,306
Home equity loans & lines, net	1,084		643		3,080		4,807		—		918,860		923,667
Consumer & other, net	3,271		889		642		4,802		4		522,383		527,189
Total, net of deferred fees and costs	$	13,638	$	14,785	$	34,345	$	62,768	$	29,215	$	16,774,553	$	16,866,536

(1) Other includes purchased credit impaired loans of $438.1 million.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $19.2 million at December 31, 2015.

Non-Covered Impaired Loans

The following table summarizes our impaired loans by loan class as of June 30, 2016 and December 31, 2015:



(in thousands)	June 30, 2016
	Unpaid		Recorded Investment
	Principal		Without		With		Related
	Balance		Allowance		Allowance		Allowance
Commercial real estate
Non-owner occupied term, net	$	16,231	$	1,020	$	14,934	$	180
Owner occupied term, net	5,585		2,920		2,428		12
Multifamily, net	4,025		514		3,519		86
Construction & development, net	1,929		—		1,926		38
Residential development, net	7,644		—		7,645		47
Commercial
Term, net	25,023		13,859		2,931		255
LOC & other, net	3,839		817		2,322		201
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	—		—		—		—
Consumer & other, net	—		—		—		—
Total, net of deferred fees and costs	$	64,276	$	19,130	$	35,705	$	819



(in thousands)	December 31, 2015
	Unpaid		Recorded Investment
	Principal		Without		With		Related
	Balance		Allowance		Allowance		Allowance
Commercial real estate
Non-owner occupied term, net	$	11,944	$	1,946	$	9,548	$	91
Owner occupied term, net	6,863		4,340		2,459		20
Multifamily, net	3,519		—		3,519		49
Construction & development, net	1,704		—		1,704		31
Residential development, net	7,889		—		7,891		90
Commercial
Term, net	22,795		14,788		2,932		283
LOC & other, net	3,470		664		2,322		224
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	—		—		—		—
Consumer & other, net	—		—		—		—
Total, net of deferred fees and costs	$	58,184	$	21,738	$	30,375	$	788

The following table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three and six months ended June 30, 2016 and 2015:



(in thousands)	Three Months Ended				Three Months Ended
	June 30, 2016				June 30, 2015
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Commercial real estate
Non-owner occupied term, net	$	12,361	$	132	$	27,044	$	225
Owner occupied term, net	6,451		33		12,660		76
Multifamily, net	3,904		30		3,519		30
Construction & development, net	1,701		21		1,722		34
Residential development, net	7,778		80		8,813		85
Commercial
Term, net	19,019		40		20,099		66
LOC & other, net	3,084		20		5,396		66
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	—		—		—		7
Consumer & other, net	—		—		—		—
Total, net of deferred fees and costs	$	54,298	$	356	$	79,253	$	589




(in thousands)	Six Months Ended				Six Months Ended
	June 30, 2016				June 30, 2015
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Commercial real estate
Non-owner occupied term, net	$	10,935	$	195	$	31,065	$	593
Owner occupied term, net	9,137		86		13,542		133
Multifamily, net	3,673		60		3,619		61
Construction & development, net	1,335		40		1,725		53
Residential development, net	7,905		161		9,101		188
Commercial
Term, net	21,672		113		19,718		69
LOC & other, net	3,237		40		8,257		68
Leases, net	—		—		—		—
Residential
Mortgage, net	—		—		—		—
Home equity loans & lines, net	—		—		—		7
Consumer & other, net	—		—		—		—
Total, net of deferred fees and costs	$	57,894	$	695	$	87,027	$	1,172

Internal Risk Rating By Loan Class

The following table summarizes our internal risk rating by loan and lease class for the loan and lease portfolio as of June 30, 2016 and December 31, 2015:



(in thousands)	June 30, 2016
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,214,630	$	78,546	$	68,090	$	107	$	137	$	15,954	$	3,377,464
Owner occupied term, net	2,455,731		62,793		56,245		368		1,301		5,348		2,581,786
Multifamily, net	2,974,155		8,728		17,974		—		—		4,033		3,004,890
Construction & development, net	360,878		2,969		2,106		—		—		1,926		367,879
Residential development, net	103,108		—		1,188		—		—		7,645		111,941
Commercial
Term, net	1,376,346		29,032		17,976		137		423		16,790		1,440,704
LOC & other, net	1,066,651		29,991		17,095		—		—		3,139		1,116,876
Leases and equipment finance, net	868,035		5,240		3,923		6,347		961		—		884,506
Residential
Mortgage, net (2)	2,829,847		5,020		44,236		—		2,973		—		2,882,076
Home equity loans & lines, net	983,513		3,521		1,998		—		782		—		989,814
Consumer & other, net	592,803		4,199		228		—		74		—		597,304
Total, net of deferred fees and costs	$	16,825,697	$	230,039	$	231,059	$	6,959	$	6,651	$	54,835	$	17,355,240

(1) The percentage of impaired loans classified as pass/watch, special mention and substandard was 1.9%, 13.0% and 85.1%, respectively, as of June 30, 2016.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $11.3 million at June 30, 2016, which is included in the substandard category.



(in thousands)	December 31, 2015
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,033,962	$	92,038	$	88,793	$	270	$	279	$	11,494	$	3,226,836
Owner occupied term, net	2,454,326		54,684		65,029		675		1,361		6,799		2,582,874
Multifamily, net	3,121,099		7,626		19,272		—		—		3,519		3,151,516
Construction & development, net	262,759		4,532		2,124		—		—		1,704		271,119
Residential development, net	89,706		507		1,355		—		—		7,891		99,459
Commercial
Term, net	1,356,675		13,620		20,463		36		162		17,720		1,408,676
LOC & other, net	998,603		19,183		15,959		1		1		2,986		1,036,733
Leases and equipment finance, net	716,190		3,849		3,499		4,889		734		—		729,161
Residential
Mortgage, net (2)	2,871,423		3,557		21,195		—		13,131		—		2,909,306
Home equity loans & lines, net	917,919		2,189		803		—		2,756		—		923,667
Consumer & other, net	522,339		4,174		458		—		218		—		527,189
Total, net of deferred fees and costs	$	16,345,001	$	205,959	$	238,950	$	5,871	$	18,642	$	52,113	$	16,866,536

(1) The percentage of impaired loans classified as pass/watch, special mention and substandard was 5.0%, 4.6%, and 90.4%, respectively, as of December 31, 2015.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $19.2 million at December 31, 2015, which is included in the substandard category.

Schedule Of Troubled Debt Restructurings

The following tables present troubled debt restructurings by accrual versus non-accrual status and by loan class as of June 30, 2016 and December 31, 2015:



(in thousands)	June 30, 2016
	Accrual		Non-Accrual		Total
	Status		Status		Modifications
Commercial real estate, net	$	26,710	$	—	$	26,710
Commercial, net	8,649		5,043		13,692
Residential, net	5,412		—		5,412
Consumer & other, net	77		—		77
Total, net of deferred fees and costs	$	40,848	$	5,043	$	45,891



(in thousands)	December 31, 2015
	Accrual		Non-Accrual		Total
	Status		Status		Modifications
Commercial real estate, net	$	21,185	$	1,324	$	22,509
Commercial, net	5,253		8,528		13,781
Residential, net	4,917		—		4,917
Total, net of deferred fees and costs	$	31,355	$	9,852	$	41,207

The following table presents newly restructured loans that occurred during the three and six months ended June 30, 2016 and 2015:



(in thousands)	Three Months Ended June 30, 2016
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications

Commercial real estate, net	$	—	$	—	$	—	$	—	$	5,450	$	5,450
Commercial, net	—		—		—		—		3,396		3,396
Residential, net	—		—		—		—		596		596
Consumer & other, net	—		—		—		—		77		77
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	9,519	$	9,519

	Three Months Ended June 30, 2015
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications

Residential, net	$	—	$	—	$	—	$	—	$	112	$	112
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	112	$	112




	Six Months Ended June 30, 2016
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications

Commercial real estate, net	$	—	$	—	$	—	$	—	$	5,659	$	5,659
Commercial, net	—		—		—		—		3,396		3,396
Residential, net	—				—		—		728		728
Consumer & other, net	—		—		—		—		77		77
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	9,860	$	9,860

(in thousands)	Six Months Ended June 30, 2015
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications

Commercial real estate, net	$	—	$	—	$	—	$	—	$	3,349	$	3,349
Residential, net	—		74		—		—		3,056		3,130
Total, net of deferred fees and costs	$	—	$	74	$	—	$	—	$	6,405	$	6,479