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 THIRD QUARTER 2016 RESULTS
Net earnings of $61.8 million, or $0.28 per common share
Operating earnings1 of $69.6 million, or $0.32 per common share
Heightened focus on core deposit gathering; record quarterly deposit growth of $660 million, or 14% annualized
Continued progress in re-balancing loan portfolio and increasing asset sensitivity
PORTLAND, Ore. – October 19, 2016 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings available to common shareholders of $61.8 million for the third quarter of 2016, compared to $54.3 million for the second quarter of 2016 and $57.5 million for the third quarter of 2015. Earnings per diluted common share were $0.28 for the third quarter of 2016, compared to $0.25 for the second quarter of 2016 and $0.26 for the third quarter of 2015.
“Results for the third quarter of 2016 were driven by strong mortgage banking revenues, record deposit growth and continued disciplined expense management,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “We continue to take advantage of growth opportunities within our markets without sacrificing our credit culture and underwriting standards, enabling us to diversify the long-term portfolio mix and increase asset sensitivity, which we believe will best position Umpqua for any economic cycle or rate environment.”
Reconciliation of Net Earnings (GAAP) to Operating Earnings (non-GAAP):
The Company’s financial results include several significant items which have been excluded in the presentation of operating earnings, which is a non-GAAP financial measure. A summary of these items, and a reconciliation of earnings available to common shareholders (GAAP) to operating earnings (non-GAAP), is presented below. More information is provided in the non-GAAP financial measures section of this release, which we urge you to read.
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 Third Quarter 2016 Results
October 19, 2016
Page 2
Quarter Ended | ||||||||||||||||||||
(In thousands, except per share data) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | |||||||||||||||
Net earnings available to common shareholders | $ | 61,778 | $ | 54,255 | $ | 47,540 | $ | 62,923 | $ | 57,523 | ||||||||||
Adjustments: | ||||||||||||||||||||
Loss from change in fair value of MSR asset | 7,826 | 13,940 | 20,625 | 469 | 10,103 | |||||||||||||||
Gain on investment securities, net | — | (162 | ) | (696 | ) | (2,567 | ) | (220 | ) | |||||||||||
Net loss on junior subordinated debentures carried at fair value | 1,590 | 1,572 | 1,572 | 1,589 | 1,590 | |||||||||||||||
(Gain) loss from change in fair value of swap derivatives | (182 | ) | 1,493 | 1,793 | (715 | ) | 1,181 | |||||||||||||
Merger related expenses | 2,011 | 6,634 | 3,450 | 3,712 | 5,991 | |||||||||||||||
Goodwill impairment | — | — | 142 | — | — | |||||||||||||||
Exit or disposal costs | 1,728 | 1,434 | 347 | — | — | |||||||||||||||
Total pre-tax adjustments | 12,973 | 24,911 | 27,233 | 2,488 | 18,645 | |||||||||||||||
Income tax effect (1) | (5,188 | ) | (9,965 | ) | (10,836 | ) | (995 | ) | (7,458 | ) | ||||||||||
Net adjustments | 7,785 | 14,946 | 16,397 | 1,493 | 11,187 | |||||||||||||||
Operating earnings | $ | 69,563 | $ | 69,201 | $ | 63,937 | $ | 64,416 | $ | 68,710 | ||||||||||
Earnings per diluted share: | ||||||||||||||||||||
Earnings available to common shareholders | $ | 0.28 | $ | 0.25 | $ | 0.22 | $ | 0.28 | $ | 0.26 | ||||||||||
Operating earnings | $ | 0.32 | $ | 0.31 | $ | 0.29 | $ | 0.29 | $ | 0.31 | ||||||||||
(1) Income tax effect of operating earnings adjustments at 40% for tax-deductible items. | ||||||||||||||||||||
Financial Highlights (compared to prior quarter):
• | Delivered solid financial performance: |
◦ | Net interest income increased by $694,000, driven primarily by higher average interest-earning assets and one additional day in the quarter, partially offset by a decline in net interest margin and a lower level of interest income arising from the accretion of the credit discount recorded on loans acquired from Sterling; |
◦ | Provision for loan and lease losses increased by $2.5 million, driven primarily by continued strong growth in the leasing and equipment finance portfolio and slightly higher net charge-offs; |
◦ | Non-interest income increased by $6.1 million, driven primarily by a $10.4 million increase in mortgage banking revenue. This was partially offset by $4.4 million in lower gains related to portfolio loan sales. Excluding the impact of non-operating items1, total non-interest income decreased by $1.6 million; |
◦ | Non-interest expense decreased by $7.3 million, driven primarily by a decline in merger-related expenses. Excluding the impact of non-operating items1, total noninterest expense decreased by $3.0 million, driven primarily by lower salaries and benefits expense; |
• | Strong balance sheet and stable credit quality: |
◦ | Net loan and lease growth of $36.8 million, or 1% annualized. Lower net loan growth for the quarter was driven primarily by higher levels of refinance and early pay-offs, predominately within the non-owner occupied commercial real estate and multifamily loan portfolios. The Company also sold $103.5 million of longer-term fixed rate portfolio residential mortgage loans. Gross loan and lease growth (prior to the impact of these sales) was $140.3 million, or 3% annualized; |
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 Third Quarter 2016 Results
October 19, 2016
Page 3
◦ | Record deposit growth of $660.3 million, or 14% annualized, reflecting initiatives across the organization to focus on core deposit gathering; |
◦ | Loan to deposit ratio decreased to 92% from 95%; |
◦ | Non-performing assets decreased to $62.3 million, or 0.25% of total assets, from $64.6 million, or 0.27% of total assets; |
• | Prudently managed capital: |
◦ | Book value increased to $17.80 per share from $17.70 per share, and tangible book value1 increased to $9.51 from $9.41 per share; |
◦ | Estimated total risk-based capital ratio of 14.4% and estimated Tier 1 common to risk weighted assets ratio of 11.1%; |
◦ | Declared quarterly cash dividend of $0.16 per common share; and |
◦ | Repurchased 325,000 shares of common stock for $5.0 million. |
Balance Sheet
Total consolidated assets were $24.7 billion as of September 30, 2016, compared to $24.1 billion as of June 30, 2016 and $23.2 billion as of September 30, 2015. Including secured off-balance sheet lines of credit at the Company, total available liquidity was $9.3 billion as of September 30, 2016, representing 38% of total assets and 49% of total deposits.
Gross loans and leases were $17.4 billion as of September 30, 2016, an increase of $36.8 million, or 1% annualized, from $17.4 billion as of June 30, 2016. During the third quarter of 2016, the Company sold $103.5 million of portfolio residential mortgage loans. Excluding the impact of the loan sales, gross loan growth was $140.3 million, or 3% annualized. The Company experienced growth in both its commercial (including leasing & equipment finance) and consumer loan portfolios. This growth was partially offset by declines in the non-owner occupied commercial real estate and multifamily loan portfolios, primarily due to heightened refinance and early pay-off activity during the quarter.
Total deposits were $18.9 billion as of September 30, 2016, an increase of $660.3 million, or 14% annualized, from $18.3 billion as of June 30, 2016. This increase was primarily attributable to growth in non-interest bearing demand, money market and savings accounts.
Net Interest Income
Net interest income increased by $694,000 from the prior quarter, driven primarily by higher average interest earning assets and one additional day in the quarter. This was partially offset by a lower average yield earned on interest-earning assets and a $1.0 million linked quarter decline in the level of interest income arising from the accretion of the credit discount recorded on loans acquired from Sterling.
The Company’s net interest margin was 3.95% for the third quarter of 2016, down from 4.07% for the second quarter of 2016. This decrease reflects higher average interest bearing cash, lower average yields on loans and leases resulting from the continued low interest-rate environment and the Company's ongoing efforts to manage the target long-term loan portfolio mix, as well as an increase in premium amortization on the mortgage-backed securities portfolio and a lower level of accretion of the credit discount.
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 Third Quarter 2016 Results
October 19, 2016
Page 4
Credit Quality
Under acquisition accounting, 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 and lease losses, or its related allowance coverage ratios, but we believe should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.
Loans acquired with significant 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 third quarter of 2016, the Company reported $9.1 million of accretion related to the Sterling credit discount in interest income, compared to $10.1 million in the prior quarter. As of September 30, 2016, the purchased non-credit impaired loans had approximately $50.3 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 $34.5 million of remaining total discount.
The allowance for loan and lease losses was $133.7 million, or 0.77% of loans and leases, as of September 30, 2016. To provide better comparability to prior periods, on a pro-forma basis this ratio would have been approximately 1.3% at both September 30, 2016 and June 30, 2016, after grossing up the allowance for loan and lease losses and total loans and leases by the amount of the credit discount remaining as of the respective quarter-end.
The provision for loan and lease losses was $13.1 million for the third quarter of 2016, a $2.5 million increase from the prior quarter level. This increase was driven primarily by strong growth in the leasing and equipment finance portfolio, along with slightly higher net charge-offs. Charge-offs, net of recoveries, increased to $10.4 million for the third quarter of 2016, compared to $9.8 million in the prior quarter. Non-performing assets decreased to $62.3 million, or 0.25% of total assets, as of September 30, 2016, compared to $64.6 million, or 0.27% of total assets, as of June 30, 2016. This decrease was driven primarily by an $8.1 million decline in other real estate owned, partially offset by a $5.8 million increase in non-performing loans.
Non-interest Income
Total reported non-interest income was $80.7 million for the third quarter of 2016, up $6.1 million from the prior quarter, driven primarily by a lower negative fair value adjustment on the MSR asset. The current quarter non-interest income included a negative adjustment of $7.8 million, compared to a negative adjustment of $13.9 million in the prior quarter, attributable to the change in long-term interest rates during the quarter, and its impact on the prepayment speed assumption for the MSR asset.
On an operating basis1, non-interest income decreased by $1.6 million from the prior quarter, reflecting a $4.4 million linked quarter decline in gains related to portfolio loan sales. This was partially offset by higher revenue from the origination and sale of residential mortgages and servicing income. Home lending gain on sale margin increased to 4.08%, compared to 4.02% in the prior quarter and for sale mortgage originations increased by 7% from the prior quarter level. Of the current quarter’s mortgage production, 68% related to purchase activity, as compared to 70% for the prior quarter and 70% for the same period in the prior year.
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 Third Quarter 2016 Results
October 19, 2016
Page 5
Revenue related to the servicing of residential mortgage loans was $9.4 million for the third quarter of 2016, an increase of 9% from the prior quarter, reflecting growth in the residential mortgage loans serviced for others portfolio.
Non-interest Expense
Non-interest expense was $181.2 million for the third quarter of 2016, which included $2.0 million of merger-related expenses and $1.7 million of exit or disposal costs. This compares to $188.5 million, including $6.6 million of merger-related expenses and $1.4 million of exit or disposal costs for the second quarter of 2016. On an operating basis1, non-interest expense decreased by $3.0 million from the prior quarter, driven primarily by lower compensation and other expense.
Capital
As of September 30, 2016, the Company’s book value per share increased to $17.80, from $17.70 in the prior quarter, and its tangible book value per common share1 increased to $9.51, from $9.41 in the prior quarter. During the third quarter of 2016, the Company repurchased 325,000 shares of common stock for $5.0 million. For the nine months ended September 30, 2016, the Company had repurchased 560,000 shares for $8.4 million.
The Company’s estimated total risk-based capital ratio was 14.4% and its estimated Tier 1 common to risk weighted
assets ratio was 11.1% as of September 30, 2016. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of September 30, 2016 are estimates, pending completion and filing of the Company’s regulatory reports.
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 Third Quarter 2016 Results
October 19, 2016
Page 6
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 these 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 incurs significant expenses related to the completion and integration of mergers and acquisitions. It also 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. 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. The Company recognizes gains and losses related to the change in the fair value of its MSR, which are primarily tied to movements in interest rates, and are not indicative of the fundamental operating activities for the period. It also recognizes gains or losses related to the change in the fair value of its swap derivatives, which are driven by movements in interest rates and are beyond our control. On occasion, the Company may sell certain securities in its investment portfolio, and recognize an associated gain or loss, which can be highly discretionary based on the timing of the sales, market opportunities, and interest rates, and therefore are not reflective of the Company's operating performance. The Company also may incur expenses related to the exit or disposal of certain business activities, such as the consolidation of bank branches, which do not reflect the on-going operating performance of the Company. Lastly, the Company may recognize one-time bargain purchase gains on certain acquisitions that are not reflective of the Company’s on-going earnings power.
Accordingly, management believes that our operating results are best measured on a comparative basis excluding the after-tax impact of merger-related expenses, gains or losses on junior subordinated debentures measured at fair value, gains or losses from the change in fair value of the MSR, gains or losses from the change in fair value of swap derivatives, net gains or losses on investment securities, exit or disposal costs and other charges related to business combinations such as goodwill impairment charges or bargain purchase gains. The Company defines operating earnings as earnings available to common shareholders before these items, and calculates 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 net 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:
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 7
Quarter ended | % Change | |||||||||||||||||||||||||
(In thousands, except per share data) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Net earnings available to common shareholders | $ | 61,778 | $ | 54,255 | $ | 47,540 | $ | 62,923 | $ | 57,523 | 14 | % | 7 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Loss from change in fair value of MSR asset | 7,826 | 13,940 | 20,625 | 469 | 10,103 | (44 | )% | (23 | )% | |||||||||||||||||
Gain on investment securities, net | — | (162 | ) | (696 | ) | (2,567 | ) | (220 | ) | (100 | )% | (100 | )% | |||||||||||||
Net loss on junior subordinated debentures carried at fair value | 1,590 | 1,572 | 1,572 | 1,589 | 1,590 | 1 | % | 0 | % | |||||||||||||||||
(Gain) loss from change in fair value of swap derivatives | (182 | ) | 1,493 | 1,793 | (715 | ) | 1,181 | (112 | )% | (115 | )% | |||||||||||||||
Merger related expenses | 2,011 | 6,634 | 3,450 | 3,712 | 5,991 | (70 | )% | (66 | )% | |||||||||||||||||
Goodwill impairment | — | — | 142 | — | — | nm | nm | |||||||||||||||||||
Exit or disposal costs | 1,728 | 1,434 | 347 | — | — | 21 | % | nm | ||||||||||||||||||
Total pre-tax adjustments | 12,973 | 24,911 | 27,233 | 2,488 | 18,645 | (48 | )% | (30 | )% | |||||||||||||||||
Income tax effect (1) | (5,188 | ) | (9,965 | ) | (10,836 | ) | (995 | ) | (7,458 | ) | (48 | )% | (30 | )% | ||||||||||||
Net adjustments | 7,785 | 14,946 | 16,397 | 1,493 | 11,187 | (48 | )% | (30 | )% | |||||||||||||||||
Operating earnings | $ | 69,563 | $ | 69,201 | $ | 63,937 | $ | 64,416 | $ | 68,710 | 1 | % | 1 | % | ||||||||||||
Earnings per diluted share: | ||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.28 | $ | 0.25 | $ | 0.22 | $ | 0.28 | $ | 0.26 | 12 | % | 8 | % | ||||||||||||
Operating earnings | $ | 0.32 | $ | 0.31 | $ | 0.29 | $ | 0.29 | $ | 0.31 | 3 | % | 3 | % | ||||||||||||
Nine months ended | % Change | |||||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | Year over Year | ||||||||||||||||||||||||
Net earnings available to common shareholders | $ | 163,573 | $ | 159,259 | 3 | % | ||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Loss from change in fair value of MSR asset | 42,391 | 20,254 | 109 | % | ||||||||||||||||||||||
Gain on investment securities, net | (858 | ) | (355 | ) | 142 | % | ||||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value | 4,734 | 4,717 | 0 | % | ||||||||||||||||||||||
Loss from change in fair value of swap derivatives | 3,104 | 554 | 460 | % | ||||||||||||||||||||||
Merger related expenses | 12,095 | 41,870 | (71 | )% | ||||||||||||||||||||||
Goodwill impairment | 142 | — | nm | |||||||||||||||||||||||
Exit or disposal costs | 3,509 | — | nm | |||||||||||||||||||||||
Total pre-tax adjustments | 65,117 | 67,040 | (3 | )% | ||||||||||||||||||||||
Income tax effect (1) | (25,990 | ) | (26,816 | ) | (3 | )% | ||||||||||||||||||||
Net adjustments | 39,127 | 40,224 | (3 | )% | ||||||||||||||||||||||
Operating earnings | $ | 202,700 | $ | 199,483 | 2 | % | ||||||||||||||||||||
Earnings per diluted share: | ||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.74 | $ | 0.72 | 3 | % | ||||||||||||||||||||
Operating earnings | $ | 0.92 | $ | 0.90 | 2 | % | ||||||||||||||||||||
(1) Income tax effect of operating earnings adjustments at 40% for tax-deductible items. | ||||||||||||||||||||||||||
nm = not meaningful. | ||||||||||||||||||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 8
The following tables provide the reconciliation of non-interest income (GAAP) to non-interest income, on an operating basis, (non-GAAP), and non-interest expense (GAAP) to non-interest expense, on an operating basis, (non-GAAP) for the periods presented:
Quarter ended | ||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | |||||||||||||||
Non-interest income (GAAP) | $ | 80,710 | $ | 74,659 | $ | 45,951 | $ | 69,345 | $ | 61,372 | ||||||||||
Adjustments: | ||||||||||||||||||||
Loss from change in fair value of MSR asset | 7,826 | 13,940 | 20,625 | 469 | 10,103 | |||||||||||||||
(Gain) loss from change in fair value of swap derivatives | (182 | ) | 1,493 | 1,793 | (715 | ) | 1,181 | |||||||||||||
Net loss on junior subordinated debentures carried at fair value | 1,590 | 1,572 | 1,572 | 1,589 | 1,590 | |||||||||||||||
Gain on investment securities, net | — | (162 | ) | (696 | ) | (2,567 | ) | (220 | ) | |||||||||||
Non-interest income (operating basis) | $ | 89,944 | $ | 91,502 | $ | 69,245 | $ | 68,121 | $ | 74,026 | ||||||||||
Quarter ended | ||||||||||||||||||||
Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | ||||||||||||||||
Non-interest expense (GAAP) | $ | 181,187 | $ | 188,511 | 183,989 | $ | 185,911 | $ | 183,194 | |||||||||||
Adjustments: | ||||||||||||||||||||
Merger related expenses | (2,011 | ) | (6,634 | ) | (3,450 | ) | (3,712 | ) | (5,991 | ) | ||||||||||
Goodwill impairment | — | — | (142 | ) | — | — | ||||||||||||||
Exit or disposal costs | (1,728 | ) | (1,434 | ) | (347 | ) | — | — | ||||||||||||
Non-interest expense (operating basis) | $ | 177,448 | $ | 180,443 | $ | 180,050 | $ | 182,199 | $ | 177,203 | ||||||||||
Nine months ended | ||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Sep 30, 2015 | ||||||||||||||||||
Non-interest income (GAAP) | $ | 201,320 | $ | 206,379 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||
Loss from change in fair value of MSR asset | 42,391 | 20,254 | ||||||||||||||||||
Loss from change in fair value of swap derivatives | 3,104 | 554 | ||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value | 4,734 | 4,717 | ||||||||||||||||||
Gain on investment securities, net | (858 | ) | (355 | ) | ||||||||||||||||
Non-interest income (operating basis) | $ | 250,691 | $ | 231,549 | ||||||||||||||||
Nine months ended | ||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | |||||||||||||||||||
Non-interest expense (GAAP) | $ | 553,687 | $ | 577,731 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||
Merger related expenses | (12,095 | ) | (41,870 | ) | ||||||||||||||||
Goodwill impairment | (142 | ) | — | |||||||||||||||||
Exit or disposal costs | (3,509 | ) | — | |||||||||||||||||
Non-interest expense (operating basis) | $ | 537,941 | $ | 535,861 | ||||||||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 9
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.
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).
(In thousands, except per share data) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | |||||||||||||||
Total shareholders' equity | $ | 3,920,208 | $ | 3,902,158 | $ | 3,878,630 | $ | 3,849,334 | $ | 3,835,552 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,793 | 1,788,640 | |||||||||||||||
Other intangible assets, net | 38,753 | 40,620 | 42,948 | 45,508 | 48,314 | |||||||||||||||
Tangible common shareholders' equity | $ | 2,093,804 | $ | 2,073,887 | $ | 2,048,031 | $ | 2,016,033 | $ | 1,998,598 | ||||||||||
Total assets | $ | 24,744,214 | $ | 24,132,507 | $ | 23,935,686 | $ | 23,406,381 | $ | 23,181,006 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,793 | 1,788,640 | |||||||||||||||
Other intangible assets, net | 38,753 | 40,620 | 42,948 | 45,508 | 48,314 | |||||||||||||||
Tangible assets | $ | 22,917,810 | $ | 22,304,236 | $ | 22,105,087 | $ | 21,573,080 | $ | 21,344,052 | ||||||||||
Common shares outstanding at period end | 220,207 | 220,482 | 220,171 | 220,171 | 220,217 | |||||||||||||||
Common equity ratio | 15.84 | % | 16.17 | % | 16.20 | % | 16.45 | % | 16.55 | % | ||||||||||
Tangible common equity ratio | 9.14 | % | 9.30 | % | 9.26 | % | 9.35 | % | 9.36 | % | ||||||||||
Book value per common share | $ | 17.80 | $ | 17.70 | $ | 17.62 | $ | 17.48 | $ | 17.42 | ||||||||||
Tangible book value per common share | $ | 9.51 | $ | 9.41 | $ | 9.30 | $ | 9.16 | $ | 9.08 | ||||||||||
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 customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and 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, and Pivotus Ventures, an innovation studio headquartered in Silicon Valley focused on creating key technologies and business models that transform finance and commerce. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquaholdingscorp.com.
Earnings Conference Call Information
The Company will host its third quarter 2016 earnings conference call on Thursday, October 20, 2016, 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 third quarter 2016 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (800) 732-8711 ten minutes prior to the start time and enter conference ID: 6636871. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 6636871. 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.
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 10
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 credit discount accretion related to loans acquired from Sterling Financial Corporation, loan and lease growth and loan sales, credit quality, asset sensitivity, and trends in the loan portfolio mix. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation, prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; lack of strategic growth opportunities or our failure to execute on those opportunities; our inability to effectively manage problem credits; our inability to successfully implement efficiency initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations.
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 11
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(In thousands, except per share data) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans and leases | $ | 212,037 | $ | 210,290 | $ | 217,928 | $ | 219,440 | $ | 218,975 | 1 | % | (3 | )% | ||||||||||||
Interest and dividends on investments: | ||||||||||||||||||||||||||
Taxable | 10,779 | 11,963 | 13,055 | 12,654 | 11,882 | (10 | )% | (9 | )% | |||||||||||||||||
Exempt from federal income tax | 2,181 | 2,183 | 2,235 | 2,363 | 2,393 | 0 | % | (9 | )% | |||||||||||||||||
Dividends | 332 | 365 | 366 | 326 | 112 | (9 | )% | 196 | % | |||||||||||||||||
Temporary investments & interest bearing deposits | 1,090 | 652 | 480 | 422 | 440 | 67 | % | 148 | % | |||||||||||||||||
Total interest income | 226,419 | 225,453 | 234,064 | 235,205 | 233,802 | 0 | % | (3 | )% | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 8,999 | 8,540 | 8,413 | 7,905 | 7,450 | 5 | % | 21 | % | |||||||||||||||||
Repurchase agreements | 32 | 32 | 36 | 39 | 43 | 0 | % | (26 | )% | |||||||||||||||||
Term debt | 3,558 | 3,848 | 4,186 | 3,885 | 3,629 | (8 | )% | (2 | )% | |||||||||||||||||
Junior subordinated debentures | 3,938 | 3,835 | 3,727 | 3,542 | 3,465 | 3 | % | 14 | % | |||||||||||||||||
Total interest expense | 16,527 | 16,255 | 16,362 | 15,371 | 14,587 | 2 | % | 13 | % | |||||||||||||||||
Net interest income | 209,892 | 209,198 | 217,702 | 219,834 | 219,215 | 0 | % | (4 | )% | |||||||||||||||||
Provision for loan and lease losses | 13,091 | 10,589 | 4,823 | 4,545 | 8,153 | 24 | % | 61 | % | |||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Service charges on deposits | 15,762 | 15,667 | 14,516 | 15,039 | 15,616 | 1 | % | 1 | % | |||||||||||||||||
Brokerage revenue | 4,129 | 4,580 | 4,094 | 4,061 | 5,003 | (10 | )% | (17 | )% | |||||||||||||||||
Residential mortgage banking revenue, net | 47,206 | 36,783 | 15,426 | 32,440 | 24,041 | 28 | % | 96 | % | |||||||||||||||||
Gain on investment securities, net | — | 162 | 696 | 2,567 | 220 | (100 | )% | (100 | )% | |||||||||||||||||
Gain on loan sales | 1,285 | 5,640 | 2,371 | 1,729 | 5,212 | (77 | )% | (75 | )% | |||||||||||||||||
Loss on junior subordinated debentures carried at fair value | (1,590 | ) | (1,572 | ) | (1,572 | ) | (1,589 | ) | (1,590 | ) | 1 | % | 0 | % | ||||||||||||
BOLI income | 2,116 | 2,152 | 2,139 | 1,841 | 2,165 | (2 | )% | (2 | )% | |||||||||||||||||
Other income | 11,802 | 11,247 | 8,281 | 13,257 | 10,705 | 5 | % | 10 | % | |||||||||||||||||
Total non-interest income | 80,710 | 74,659 | 45,951 | 69,345 | 61,372 | 8 | % | 32 | % | |||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 105,341 | 107,545 | 106,538 | 106,203 | 106,482 | (2 | )% | (1 | )% | |||||||||||||||||
Occupancy and equipment, net | 38,181 | 37,850 | 38,295 | 38,722 | 37,235 | 1 | % | 3 | % | |||||||||||||||||
Intangible amortization | 1,867 | 2,328 | 2,560 | 2,806 | 2,806 | (20 | )% | (33 | )% | |||||||||||||||||
FDIC assessments | 4,109 | 3,693 | 3,721 | 3,742 | 3,369 | 11 | % | 22 | % | |||||||||||||||||
(Gain) loss on other real estate owned, net | (14 | ) | (1,457 | ) | 1,389 | (242 | ) | (158 | ) | (99 | )% | (91 | )% | |||||||||||||
Merger related expenses | 2,011 | 6,634 | 3,450 | 3,712 | 5,991 | (70 | )% | (66 | )% | |||||||||||||||||
Goodwill impairment | — | — | 142 | — | — | nm | nm | |||||||||||||||||||
Other expense | 29,692 | 31,918 | 27,894 | 30,968 | 27,469 | (7 | )% | 8 | % | |||||||||||||||||
Total non-interest expense | 181,187 | 188,511 | 183,989 | 185,911 | 183,194 | (4 | )% | (1 | )% | |||||||||||||||||
Income before provision for income taxes | 96,324 | 84,757 | 74,841 | 98,723 | 89,240 | 14 | % | 8 | % | |||||||||||||||||
Provision for income taxes | 34,515 | 30,470 | 27,272 | 35,704 | 31,633 | 13 | % | 9 | % | |||||||||||||||||
Net income | 61,809 | 54,287 | 47,569 | 63,019 | 57,607 | 14 | % | 7 | % | |||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | 31 | 32 | 29 | 96 | 84 | (3 | )% | (63 | )% | |||||||||||||||||
Net earnings available to common shareholders | $ | 61,778 | $ | 54,255 | $ | 47,540 | $ | 62,923 | $ | 57,523 | 14 | % | 7 | % | ||||||||||||
Weighted average basic shares outstanding | 220,291 | 220,421 | 220,227 | 220,202 | 220,297 | 0 | % | 0 | % | |||||||||||||||||
Weighted average diluted shares outstanding | 220,751 | 220,907 | 221,052 | 220,930 | 220,904 | 0 | % | 0 | % | |||||||||||||||||
Earnings per common share – basic | $ | 0.28 | $ | 0.25 | $ | 0.22 | $ | 0.29 | $ | 0.26 | 12 | % | 8 | % | ||||||||||||
Earnings per common share – diluted | $ | 0.28 | $ | 0.25 | $ | 0.22 | $ | 0.28 | $ | 0.26 | 12 | % | 8 | % | ||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 12
Umpqua Holdings Corporation | |||||||||||
Consolidated Statements of Income | |||||||||||
(Unaudited) | |||||||||||
Nine months ended | % Change | ||||||||||
(In thousands, except per share data) | Sep 30, 2016 | Sep 30, 2015 | Year over Year | ||||||||
Interest income | |||||||||||
Loans and leases | $ | 640,255 | $ | 649,993 | (1 | )% | |||||
Interest and dividends on investments: | |||||||||||
Taxable | 35,797 | 35,188 | 2 | % | |||||||
Exempt from federal income tax | 6,599 | 7,284 | (9 | )% | |||||||
Dividends | 1,063 | 382 | 178 | % | |||||||
Temporary investments & interest bearing deposits | 2,222 | 1,814 | 22 | % | |||||||
Total interest income | 685,936 | 694,661 | (1 | )% | |||||||
Interest expense | |||||||||||
Deposits | 25,952 | 21,934 | 18 | % | |||||||
Repurchase agreements | 100 | 134 | (25 | )% | |||||||
Term debt | 11,592 | 10,585 | 10 | % | |||||||
Junior subordinated debentures | 11,500 | 10,208 | 13 | % | |||||||
Total interest expense | 49,144 | 42,861 | 15 | % | |||||||
Net interest income | 636,792 | 651,800 | (2 | )% | |||||||
Provision for loan and lease losses | 28,503 | 32,044 | (11 | )% | |||||||
Non-interest income | |||||||||||
Service charges on deposits | 45,945 | 44,701 | 3 | % | |||||||
Brokerage revenue | 12,803 | 14,420 | (11 | )% | |||||||
Residential mortgage banking revenue, net | 99,415 | 92,282 | 8 | % | |||||||
Gain on investment securities, net | 858 | 355 | 142 | % | |||||||
Gain on loan sales | 9,296 | 20,651 | (55 | )% | |||||||
Loss on junior subordinated debentures carried at fair value | (4,734 | ) | (4,717 | ) | 0 | % | |||||
BOLI Income | 6,407 | 6,510 | (2 | )% | |||||||
Other income | 31,330 | 32,177 | (3 | )% | |||||||
Total non-interest income | 201,320 | 206,379 | (2 | )% | |||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 319,424 | 324,733 | (2 | )% | |||||||
Occupancy and equipment, net | 114,326 | 104,253 | 10 | % | |||||||
Intangible amortization | 6,755 | 8,419 | (20 | )% | |||||||
FDIC assessments | 11,523 | 9,738 | 18 | % | |||||||
(Gain) loss on other real estate owned, net | (82 | ) | 2,136 | (104 | )% | ||||||
Merger related expenses | 12,095 | 41,870 | (71 | )% | |||||||
Goodwill impairment | 142 | — | nm | ||||||||
Other expense | 89,504 | 86,582 | 3 | % | |||||||
Total non-interest expense | 553,687 | 577,731 | (4 | )% | |||||||
Income before provision for income taxes | 255,922 | 248,404 | 3 | % | |||||||
Provision for income taxes | 92,257 | 88,884 | 4 | % | |||||||
Net income | 163,665 | 159,520 | 3 | % | |||||||
Dividends and undistributed earnings | |||||||||||
allocated to participating securities | 92 | 261 | (65 | )% | |||||||
Net earnings available to common shareholders | $ | 163,573 | $ | 159,259 | 3 | % | |||||
Weighted average basic shares outstanding | 220,313 | 220,370 | 0 | % | |||||||
Weighted average diluted shares outstanding | 220,936 | 221,062 | 0 | % | |||||||
Earnings per common share – basic | $ | 0.74 | $ | 0.72 | 3 | % | |||||
Earnings per common share – diluted | $ | 0.74 | $ | 0.72 | 3 | % | |||||
nm = not meaningful | |||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 13
Umpqua Holdings Corporation Consolidated Balance Sheets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||
(In thousands, except per share data) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 364,013 | $ | 369,535 | $ | 299,871 | $ | 277,645 | $ | 283,773 | (1 | )% | 28 | % | ||||||||||||
Interest bearing cash and temporary investments | 1,102,428 | 535,828 | 613,049 | 496,080 | 673,843 | 106 | % | 64 | % | |||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Trading, at fair value | 10,866 | 10,188 | 9,791 | 9,586 | 9,509 | 7 | % | 14 | % | |||||||||||||||||
Available for sale, at fair value | 2,520,037 | 2,482,072 | 2,542,535 | 2,522,539 | 2,482,478 | 2 | % | 2 | % | |||||||||||||||||
Held to maturity, at amortized cost | 4,302 | 4,382 | 4,525 | 4,609 | 4,699 | (2 | )% | (8 | )% | |||||||||||||||||
Loans held for sale | 565,624 | 552,681 | 659,264 | 363,275 | 398,015 | 2 | % | 42 | % | |||||||||||||||||
Loans and leases | 17,392,051 | 17,355,240 | 16,955,583 | 16,866,536 | 16,406,636 | 0 | % | 6 | % | |||||||||||||||||
Allowance for loan and lease losses | (133,692 | ) | (131,042 | ) | (130,243 | ) | (130,322 | ) | (130,133 | ) | 2 | % | 3 | % | ||||||||||||
Loans and leases, net | 17,258,359 | 17,224,198 | 16,825,340 | 16,736,214 | 16,276,503 | 0 | % | 6 | % | |||||||||||||||||
Restricted equity securities | 47,537 | 47,542 | 47,545 | 46,949 | 46,904 | 0 | % | 1 | % | |||||||||||||||||
Premises and equipment, net | 306,287 | 312,647 | 322,822 | 328,734 | 330,306 | (2 | )% | (7 | )% | |||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,793 | 1,788,640 | 0 | % | 0 | % | |||||||||||||||||
Other intangible assets, net | 38,753 | 40,620 | 42,948 | 45,508 | 48,314 | (5 | )% | (20 | )% | |||||||||||||||||
Residential mortgage servicing rights, at fair value | 114,446 | 112,095 | 117,172 | 131,817 | 124,814 | 2 | % | (8 | )% | |||||||||||||||||
Other real estate owned | 8,309 | 16,437 | 20,411 | 22,307 | 23,892 | (49 | )% | (65 | )% | |||||||||||||||||
Bank owned life insurance | 297,561 | 295,444 | 293,703 | 291,892 | 297,321 | 1 | % | 0 | % | |||||||||||||||||
Deferred tax assets, net | 27,587 | 63,038 | 108,865 | 138,082 | 149,320 | (56 | )% | (82 | )% | |||||||||||||||||
Other assets | 290,454 | 278,149 | 240,194 | 203,351 | 242,675 | 4 | % | 20 | % | |||||||||||||||||
Total assets | $ | 24,744,214 | $ | 24,132,507 | $ | 23,935,686 | $ | 23,406,381 | $ | 23,181,006 | 3 | % | 7 | % | ||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 18,918,780 | $ | 18,258,474 | $ | 18,162,974 | $ | 17,707,189 | $ | 17,467,024 | 4 | % | 8 | % | ||||||||||||
Securities sold under agreements to repurchase | 309,463 | 360,234 | 325,203 | 304,560 | 323,722 | (14 | )% | (4 | )% | |||||||||||||||||
Term debt | 902,678 | 902,999 | 903,382 | 888,769 | 889,358 | 0 | % | 1 | % | |||||||||||||||||
Junior subordinated debentures, at fair value | 260,114 | 258,660 | 256,917 | 255,457 | 253,665 | 1 | % | 3 | % | |||||||||||||||||
Junior subordinated debentures, at amortized cost | 101,012 | 101,093 | 101,173 | 101,254 | 101,334 | 0 | % | 0 | % | |||||||||||||||||
Other liabilities | 331,959 | 348,889 | 307,407 | 299,818 | 310,351 | (5 | )% | 7 | % | |||||||||||||||||
Total liabilities | 20,824,006 | 20,230,349 | 20,057,056 | 19,557,047 | 19,345,454 | 3 | % | 8 | % | |||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Common stock | 3,514,858 | 3,517,240 | 3,518,792 | 3,520,591 | 3,517,751 | 0 | % | 0 | % | |||||||||||||||||
Retained earnings | 388,678 | 362,258 | 343,421 | 331,301 | 303,729 | 7 | % | 28 | % | |||||||||||||||||
Accumulated other comprehensive income (loss) | 16,672 | 22,660 | 16,417 | (2,558 | ) | 14,072 | (26 | )% | 18 | % | ||||||||||||||||
Total shareholders' equity | 3,920,208 | 3,902,158 | 3,878,630 | 3,849,334 | 3,835,552 | 0 | % | 2 | % | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 24,744,214 | $ | 24,132,507 | $ | 23,935,686 | $ | 23,406,381 | $ | 23,181,006 | 3 | % | 7 | % | ||||||||||||
Common shares outstanding at period end | 220,207 | 220,482 | 220,171 | 220,171 | 220,217 | 0 | % | 0 | % | |||||||||||||||||
Book value per common share | $ | 17.80 | $ | 17.70 | $ | 17.62 | $ | 17.48 | $ | 17.42 | 1 | % | 2 | % | ||||||||||||
Tangible book value per common share | $ | 9.51 | $ | 9.41 | $ | 9.30 | $ | 9.16 | $ | 9.08 | 1 | % | 5 | % | ||||||||||||
Tangible equity - common | $ | 2,093,804 | $ | 2,073,887 | $ | 2,048,031 | $ | 2,016,033 | $ | 1,998,598 | 1 | % | 5 | % | ||||||||||||
Tangible common equity to tangible assets | 9.14 | % | 9.30 | % | 9.26 | % | 9.35 | % | 9.36 | % | (0.16 | ) | (0.22 | ) | ||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 14
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Loan & Lease Portfolio | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Loans & leases: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | $ | 3,280,660 | $ | 3,377,464 | $ | 3,202,488 | $ | 3,226,836 | $ | 3,155,102 | (3 | )% | 4 | % | ||||||||||||
Owner occupied term, net | 2,573,942 | 2,581,786 | 2,714,766 | 2,582,874 | 2,651,505 | 0 | % | (3 | )% | |||||||||||||||||
Multifamily, net | 2,968,019 | 3,004,890 | 2,959,975 | 3,151,516 | 3,003,904 | (1 | )% | (1 | )% | |||||||||||||||||
Commercial construction, net | 388,934 | 367,879 | 338,801 | 271,119 | 273,102 | 6 | % | 42 | % | |||||||||||||||||
Residential development, net | 127,447 | 111,941 | 121,025 | 99,459 | 94,380 | 14 | % | 35 | % | |||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 1,480,173 | 1,440,704 | 1,412,816 | 1,408,676 | 1,372,927 | 3 | % | 8 | % | |||||||||||||||||
Lines of credit & other, net | 1,142,946 | 1,116,876 | 1,036,389 | 1,036,733 | 1,009,322 | 2 | % | 13 | % | |||||||||||||||||
Leases & equipment finance, net | 927,857 | 884,506 | 791,798 | 729,161 | 679,033 | 5 | % | 37 | % | |||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 2,868,337 | 2,882,076 | 2,879,600 | 2,909,306 | 2,758,931 | 0 | % | 4 | % | |||||||||||||||||
Home equity lines & loans, net | 1,008,219 | 989,814 | 943,254 | 923,667 | 910,287 | 2 | % | 11 | % | |||||||||||||||||
Consumer & other, net | 625,517 | 597,304 | 554,671 | 527,189 | 498,143 | 5 | % | 26 | % | |||||||||||||||||
Total, net of deferred fees and costs | $ | 17,392,051 | $ | 17,355,240 | $ | 16,955,583 | $ | 16,866,536 | $ | 16,406,636 | 0 | % | 6 | % | ||||||||||||
Loan & leases mix: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | ||||||||||||||||
Owner occupied term, net | 15 | % | 15 | % | 16 | % | 15 | % | 16 | % | ||||||||||||||||
Multifamily, net | 17 | % | 17 | % | 17 | % | 19 | % | 18 | % | ||||||||||||||||
Commercial construction, net | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||
Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 8 | % | 8 | % | 8 | % | 9 | % | 8 | % | ||||||||||||||||
Lines of credit & other, net | 7 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Leases & equipment finance, net | 5 | % | 6 | % | 5 | % | 4 | % | 4 | % | ||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 16 | % | 17 | % | 17 | % | 17 | % | 17 | % | ||||||||||||||||
Home equity lines & loans, net | 6 | % | 6 | % | 6 | % | 5 | % | 6 | % | ||||||||||||||||
Consumer & other, net | 4 | % | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 15
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Deposits by Type/Core Deposits | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 5,993,793 | $ | 5,475,986 | $ | 5,460,310 | $ | 5,318,591 | $ | 5,207,129 | 9 | % | 15 | % | ||||||||||||
Demand, interest bearing | 2,218,782 | 2,186,164 | 2,178,446 | 2,157,376 | 2,098,223 | 1 | % | 6 | % | |||||||||||||||||
Money market | 6,841,700 | 6,782,232 | 6,814,160 | 6,599,516 | 6,514,174 | 1 | % | 5 | % | |||||||||||||||||
Savings | 1,303,816 | 1,254,675 | 1,213,049 | 1,136,809 | 1,102,611 | 4 | % | 18 | % | |||||||||||||||||
Time | 2,560,689 | 2,559,417 | 2,497,009 | 2,494,897 | 2,544,887 | 0 | % | 1 | % | |||||||||||||||||
Total | $ | 18,918,780 | $ | 18,258,474 | $ | 18,162,974 | $ | 17,707,189 | $ | 17,467,024 | 4 | % | 8 | % | ||||||||||||
Total core deposits (1) | $ | 17,257,663 | $ | 16,598,065 | $ | 16,559,943 | $ | 16,102,743 | $ | 15,940,229 | 4 | % | 8 | % | ||||||||||||
Deposit mix: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 31 | % | 30 | % | 30 | % | 30 | % | 30 | % | ||||||||||||||||
Demand, interest bearing | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||
Money market | 36 | % | 37 | % | 37 | % | 37 | % | 37 | % | ||||||||||||||||
Savings | 7 | % | 7 | % | 7 | % | 6 | % | 6 | % | ||||||||||||||||
Time | 14 | % | 14 | % | 14 | % | 15 | % | 15 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Number of open accounts: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 382,687 | 379,996 | 375,913 | 371,745 | 370,128 | |||||||||||||||||||||
Demand, interest bearing | 83,501 | 84,434 | 85,731 | 86,745 | 88,171 | |||||||||||||||||||||
Money market | 56,128 | 56,492 | 56,927 | 57,194 | 57,622 | |||||||||||||||||||||
Savings | 158,760 | 157,849 | 156,846 | 154,176 | 153,534 | |||||||||||||||||||||
Time | 47,689 | 47,850 | 47,794 | 47,672 | 48,168 | |||||||||||||||||||||
Total | 728,765 | 726,621 | 723,211 | 717,532 | 717,623 | |||||||||||||||||||||
Average balance per account: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 15.7 | $ | 14.4 | $ | 14.5 | $ | 14.3 | $ | 14.1 | ||||||||||||||||
Demand, interest bearing | 26.6 | 25.9 | 25.4 | 24.9 | 23.8 | |||||||||||||||||||||
Money market | 121.9 | 120.1 | 119.7 | 115.4 | 113.1 | |||||||||||||||||||||
Savings | 8.2 | 7.9 | 7.7 | 7.4 | 7.2 | |||||||||||||||||||||
Time | 53.7 | 53.5 | 52.2 | 52.3 | 52.8 | |||||||||||||||||||||
Total | $ | 26.0 | $ | 25.1 | $ | 25.1 | $ | 24.7 | $ | 24.3 | ||||||||||||||||
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 16
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Non-performing Assets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Non-performing assets: | ||||||||||||||||||||||||||
Loans and leases on non-accrual status | $ | 27,791 | $ | 25,136 | $ | 30,045 | $ | 29,215 | $ | 30,989 | 11 | % | (10 | )% | ||||||||||||
Loans and leases past due 90+ days & accruing (1) | 26,189 | 23,076 | 22,144 | 15,169 | 9,967 | 13 | % | 163 | % | |||||||||||||||||
Total non-performing loans and leases | 53,980 | 48,212 | 52,189 | 44,384 | 40,956 | 12 | % | 32 | % | |||||||||||||||||
Other real estate owned | 8,309 | 16,437 | 20,411 | 22,307 | 23,892 | (49 | )% | (65 | )% | |||||||||||||||||
Total non-performing assets | $ | 62,289 | $ | 64,649 | $ | 72,600 | $ | 66,691 | $ | 64,848 | (4 | )% | (4 | )% | ||||||||||||
Performing restructured loans and leases | $ | 36,645 | $ | 40,848 | $ | 31,409 | $ | 31,355 | $ | 35,706 | (10 | )% | 3 | % | ||||||||||||
Loans and leases past due 31-89 days | $ | 39,708 | $ | 29,640 | $ | 29,054 | $ | 28,423 | $ | 28,919 | 34 | % | 37 | % | ||||||||||||
Loans and leases past due 31-89 days to total loans and leases | 0.23 | % | 0.17 | % | 0.17 | % | 0.17 | % | 0.18 | % | ||||||||||||||||
Non-performing loans and leases to total loans and leases (1) | 0.31 | % | 0.28 | % | 0.31 | % | 0.26 | % | 0.25 | % | ||||||||||||||||
Non-performing assets to total assets (1) | 0.25 | % | 0.27 | % | 0.30 | % | 0.28 | % | 0.28 | % | ||||||||||||||||
(1) | Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $7.3 million, $11.3 million, $14.2 million, $19.2 million, and $18.7 million at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively. |
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 17
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 131,042 | $ | 130,243 | $ | 130,322 | $ | 130,133 | $ | 127,071 | ||||||||||||||||
Provision for loan and lease losses | 13,091 | 10,589 | 4,823 | 4,545 | 8,153 | 24 | % | 61 | % | |||||||||||||||||
Charge-offs | (13,088 | ) | (12,682 | ) | (7,850 | ) | (7,108 | ) | (8,476 | ) | 3 | % | 54 | % | ||||||||||||
Recoveries | 2,647 | 2,892 | 2,948 | 2,752 | 3,385 | (8 | )% | (22 | )% | |||||||||||||||||
Net charge-offs | (10,441 | ) | (9,790 | ) | (4,902 | ) | (4,356 | ) | (5,091 | ) | 7 | % | 105 | % | ||||||||||||
Total allowance for loan and lease losses | 133,692 | 131,042 | 130,243 | 130,322 | 130,133 | 2 | % | 3 | % | |||||||||||||||||
Reserve for unfunded commitments | 3,536 | 3,531 | 3,482 | 3,574 | 3,081 | 0 | % | 15 | % | |||||||||||||||||
Total allowance for credit losses | $ | 137,228 | $ | 134,573 | $ | 133,725 | $ | 133,896 | $ | 133,214 | 2 | % | 3 | % | ||||||||||||
Net charge-offs to average loans and leases (annualized) | 0.24 | % | 0.23 | % | 0.12 | % | 0.10 | % | 0.13 | % | ||||||||||||||||
Recoveries to gross charge-offs | 20.22 | % | 22.80 | % | 37.55 | % | 38.72 | % | 39.94 | % | ||||||||||||||||
Allowance for loan and lease losses to loans and leases | 0.77 | % | 0.76 | % | 0.77 | % | 0.77 | % | 0.79 | % | ||||||||||||||||
Allowance for credit losses to loans and leases | 0.79 | % | 0.78 | % | 0.79 | % | 0.79 | % | 0.81 | % | ||||||||||||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 18
Umpqua Holdings Corporation | |||||||||||
Credit Quality – Allowance for Loan and Lease Losses | |||||||||||
(Unaudited) | |||||||||||
Nine months ended | % Change | ||||||||||
(Dollars in thousands) | Sep 30, 2016 | Sep 30, 2015 | Year over Year | ||||||||
Allowance for loan and lease losses: | |||||||||||
Balance beginning of period | $ | 130,322 | $ | 116,167 | |||||||
Provision for loan and lease losses | 28,503 | 32,044 | (11 | )% | |||||||
Charge-offs | (33,620 | ) | (28,463 | ) | 18 | % | |||||
Recoveries | 8,487 | 10,385 | (18 | )% | |||||||
Net charge-offs | (25,133 | ) | (18,078 | ) | 39 | % | |||||
Total allowance for loan and lease losses | 133,692 | 130,133 | 3 | % | |||||||
Reserve for unfunded commitments | 3,536 | 3,081 | 15 | % | |||||||
Total allowance for credit losses | $ | 137,228 | $ | 133,214 | 3 | % | |||||
Net charge-offs to average loans and leases (annualized) | 0.20 | % | 0.15 | % | |||||||
Recoveries to gross charge-offs | 25.24 | % | 36.49 | % | |||||||
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 19
Umpqua Holdings Corporation | |||||||||||||||||||||
Selected Ratios | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||
Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||
Average Rates: | |||||||||||||||||||||
Yield on loans and leases | 4.75 | % | 4.81 | % | 5.07 | % | 5.21 | % | 5.30 | % | (0.06 | ) | (0.55 | ) | |||||||
Yield on loans held for sale | 3.79 | % | 3.80 | % | 4.06 | % | 3.83 | % | 4.10 | % | (0.01 | ) | (0.31 | ) | |||||||
Yield on taxable investments | 1.96 | % | 2.14 | % | 2.32 | % | 2.26 | % | 2.11 | % | (0.18 | ) | (0.15 | ) | |||||||
Yield on tax-exempt investments (1) | 4.68 | % | 4.73 | % | 4.73 | % | 4.76 | % | 4.73 | % | (0.05 | ) | (0.05 | ) | |||||||
Yield on interest bearing cash and temporary investments | 0.50 | % | 0.51 | % | 0.54 | % | 0.28 | % | 0.25 | % | (0.01 | ) | 0.25 | ||||||||
Total yield on earning assets (1) | 4.26 | % | 4.39 | % | 4.66 | % | 4.69 | % | 4.73 | % | (0.13 | ) | (0.47 | ) | |||||||
Cost of interest bearing deposits | 0.28 | % | 0.27 | % | 0.27 | % | 0.26 | % | 0.24 | % | 0.01 | 0.04 | |||||||||
Cost of securities sold under agreements | |||||||||||||||||||||
to repurchase and fed funds purchased | 0.04 | % | 0.04 | % | 0.05 | % | 0.05 | % | 0.05 | % | — | (0.01 | ) | ||||||||
Cost of term debt | 1.57 | % | 1.72 | % | 1.88 | % | 1.73 | % | 1.62 | % | (0.15 | ) | (0.05 | ) | |||||||
Cost of junior subordinated debentures | 4.36 | % | 4.30 | % | 4.20 | % | 3.96 | % | 3.89 | % | 0.06 | 0.47 | |||||||||
Total cost of interest bearing liabilities | 0.46 | % | 0.46 | % | 0.47 | % | 0.44 | % | 0.42 | % | — | 0.04 | |||||||||
Net interest spread (1) | 3.80 | % | 3.93 | % | 4.19 | % | 4.25 | % | 4.31 | % | (0.13 | ) | (0.51 | ) | |||||||
Net interest margin (1) | 3.95 | % | 4.07 | % | 4.34 | % | 4.39 | % | 4.43 | % | (0.12 | ) | (0.48 | ) | |||||||
As reported (GAAP): | |||||||||||||||||||||
Return on average assets | 1.01 | % | 0.91 | % | 0.82 | % | 1.08 | % | 0.99 | % | 0.10 | 0.02 | |||||||||
Return on average tangible assets | 1.09 | % | 0.99 | % | 0.89 | % | 1.17 | % | 1.08 | % | 0.10 | 0.01 | |||||||||
Return on average common equity | 6.28 | % | 5.61 | % | 4.93 | % | 6.49 | % | 5.97 | % | 0.67 | 0.31 | |||||||||
Return on average tangible common equity | 11.79 | % | 10.59 | % | 9.34 | % | 12.41 | % | 11.51 | % | 1.20 | 0.28 | |||||||||
Efficiency ratio – Consolidated | 62.11 | % | 66.15 | % | 69.48 | % | 64.02 | % | 65.00 | % | (4.04 | ) | (2.89 | ) | |||||||
Efficiency ratio – Bank | 60.45 | % | 64.44 | % | 67.29 | % | 62.40 | % | 63.08 | % | (3.99 | ) | (2.63 | ) | |||||||
Operating basis (non-GAAP): (2) | |||||||||||||||||||||
Return on average assets | 1.13 | % | 1.16 | % | 1.10 | % | 1.10 | % | 1.19 | % | (0.03 | ) | (0.06 | ) | |||||||
Return on average tangible assets | 1.22 | % | 1.26 | % | 1.19 | % | 1.20 | % | 1.29 | % | (0.04 | ) | (0.07 | ) | |||||||
Return on average common equity | 7.08 | % | 7.16 | % | 6.63 | % | 6.64 | % | 7.13 | % | (0.08 | ) | (0.05 | ) | |||||||
Return on average tangible common equity | 13.28 | % | 13.51 | % | 12.57 | % | 12.70 | % | 13.74 | % | (0.23 | ) | (0.46 | ) | |||||||
Efficiency ratio – Consolidated | 58.96 | % | 59.78 | % | 62.49 | % | 63.00 | % | 60.17 | % | (0.82 | ) | (1.21 | ) | |||||||
Efficiency ratio – Bank | 57.66 | % | 58.48 | % | 60.89 | % | 61.72 | % | 58.84 | % | (0.82 | ) | (1.18 | ) | |||||||
(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 the after-tax impact of merger-related expenses, gains or losses on junior subordinated debentures carried at fair value, gains or losses from the change in fair value of the MSR, gains or losses from the change in fair value of the swap derivative, net gains or losses in investment securities, exit or disposal costs, bargain purchase gain on acquisitions and goodwill impairment.
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 20
Umpqua Holdings Corporation | |||||||||
Selected Ratios | |||||||||
(Unaudited) | |||||||||
Nine months ended | % Change | ||||||||
Sep 30, 2016 | Sep 30, 2015 | Year over Year | |||||||
Average Rates: | |||||||||
Yield on loans and leases | 4.88 | % | 5.44 | % | (0.56 | ) | |||
Yield on loans held for sale | 3.86 | % | 3.68 | % | 0.18 | ||||
Yield on taxable investments | 2.14 | % | 2.09 | % | 0.05 | ||||
Yield on tax-exempt investments (1) | 4.71 | % | 4.72 | % | (0.01 | ) | |||
Yield on interest bearing cash and temporary investments | 0.51 | % | 0.25 | % | 0.26 | ||||
Total yield on earning assets (1) | 4.43 | % | 4.76 | % | (0.33 | ) | |||
Cost of interest bearing deposits | 0.27 | % | 0.24 | % | 0.03 | ||||
Cost of securities sold under agreements | |||||||||
to repurchase and fed funds purchased | 0.04 | % | 0.06 | % | (0.02 | ) | |||
Cost of term debt | 1.72 | % | 1.51 | % | 0.21 | ||||
Cost of junior subordinated debentures | 4.29 | % | 3.88 | % | 0.41 | ||||
Total cost of interest bearing liabilities | 0.46 | % | 0.41 | % | 0.05 | ||||
Net interest spread (1) | 3.97 | % | 4.35 | % | (0.38 | ) | |||
Net interest margin (1) | 4.12 | % | 4.47 | % | (0.35 | ) | |||
As reported (GAAP): | |||||||||
Return on average assets | 0.91 | % | 0.93 | % | (0.02 | ) | |||
Return on average tangible assets | 0.99 | % | 1.02 | % | (0.03 | ) | |||
Return on average common equity | 5.61 | % | 5.59 | % | 0.02 | ||||
Return on average tangible common equity | 10.59 | % | 10.81 | % | (0.22 | ) | |||
Efficiency ratio – Consolidated | 65.79 | % | 67.02 | % | (1.23 | ) | |||
Efficiency ratio – Bank | 63.96 | % | 65.30 | % | (1.34 | ) | |||
Operating basis (non-GAAP): (2) | |||||||||
Return on average assets | 1.13 | % | 1.17 | % | (0.04 | ) | |||
Return on average tangible assets | 1.23 | % | 1.27 | % | (0.04 | ) | |||
Return on average common equity | 6.95 | % | 7.00 | % | (0.05 | ) | |||
Return on average tangible common equity | 13.12 | % | 13.54 | % | (0.42 | ) | |||
Efficiency ratio – Consolidated | 60.38 | % | 60.48 | % | (0.10 | ) | |||
Efficiency ratio – Bank | 58.98 | % | 59.12 | % | (0.14 | ) | |||
(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 the after-tax impact of merger-related expenses, gains or losses on junior subordinated debentures carried at fair value, gains or losses from the change in fair value of the MSR, gains or losses from the change in fair value of the swap derivative, net gains or losses in investment securities, exit or disposal costs, bargain purchase gain on acquisitions and goodwill impairment.
Umpqua Reports Third Quarter 2016 Results
October 19, 2016
Page 21
Umpqua Holdings Corporation Average Balances | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Temporary investments & interest bearing cash | $ | 874,410 | $ | 514,881 | $ | 356,674 | $ | 608,250 | $ | 693,114 | 70 | % | 26 | % | ||||||||||||
Investment securities, taxable | 2,265,883 | 2,304,998 | 2,311,589 | 2,293,429 | 2,276,698 | (2 | )% | 0 | % | |||||||||||||||||
Investment securities, tax-exempt | 283,818 | 280,841 | 287,085 | 302,443 | 307,960 | 1 | % | (8 | )% | |||||||||||||||||
Loans held for sale | 481,740 | 403,964 | 297,732 | 334,404 | 357,905 | 19 | % | 35 | % | |||||||||||||||||
Loans and leases | 17,400,657 | 17,234,220 | 17,008,084 | 16,514,770 | 16,155,395 | 1 | % | 8 | % | |||||||||||||||||
Total interest earning assets | 21,306,508 | 20,738,904 | 20,261,164 | 20,053,296 | 19,791,072 | 3 | % | 8 | % | |||||||||||||||||
Goodwill & other intangible assets, net | 1,827,405 | 1,829,407 | 1,832,046 | 1,835,821 | 1,838,740 | 0 | % | (1 | )% | |||||||||||||||||
Total assets | 24,422,986 | 23,896,315 | 23,415,439 | 23,196,052 | 22,946,464 | 2 | % | 6 | % | |||||||||||||||||
Non-interest bearing demand deposits | 5,766,022 | 5,466,098 | 5,289,810 | 5,285,992 | 5,108,430 | 5 | % | 13 | % | |||||||||||||||||
Interest bearing deposits | 12,836,987 | 12,644,442 | 12,411,005 | 12,249,333 | 12,225,691 | 2 | % | 5 | % | |||||||||||||||||
Total deposits | 18,603,009 | 18,110,540 | 17,700,815 | 17,535,325 | 17,334,121 | 3 | % | 7 | % | |||||||||||||||||
Interest bearing liabilities | 14,446,687 | 14,249,349 | 13,976,678 | 13,812,645 | 13,798,350 | 1 | % | 5 | % | |||||||||||||||||
Shareholders’ equity - common | 3,911,323 | 3,889,593 | 3,878,540 | 3,847,587 | 3,822,201 | 1 | % | 2 | % | |||||||||||||||||
Tangible common equity (1) | 2,083,918 | 2,060,186 | 2,046,494 | 2,011,766 | 1,983,461 | 1 | % | 5 | % | |||||||||||||||||
Umpqua Holdings Corporation Average Balances | |||||||||||
(Unaudited) | |||||||||||
Nine months ended | % Change | ||||||||||
(Dollars in thousands) | Sep 30, 2016 | Sep 30, 2015 | Year over Year | ||||||||
Temporary investments & interest bearing cash | $ | 583,056 | $ | 957,210 | (39 | )% | |||||
Investment securities, taxable | 2,294,054 | 2,269,474 | 1 | % | |||||||
Investment securities, tax-exempt | 283,914 | 313,462 | (9 | )% | |||||||
Loans held for sale | 394,797 | 333,135 | 19 | % | |||||||
Loans and leases | 17,215,000 | 15,743,801 | 9 | % | |||||||
Total interest earning assets | 20,770,821 | 19,617,082 | 6 | % | |||||||
Goodwill & other intangible assets, net | 1,829,611 | 1,840,874 | (1 | )% | |||||||
Total assets | 23,913,446 | 22,807,640 | 5 | % | |||||||
Non-interest bearing demand deposits | 5,508,255 | 4,924,356 | 12 | % | |||||||
Interest bearing deposits | 12,631,564 | 12,230,574 | 3 | % | |||||||
Total deposits | 18,139,819 | 17,154,930 | 6 | % | |||||||
Interest bearing liabilities | 14,225,049 | 13,840,189 | 3 | % | |||||||
Shareholders’ equity - common | 3,893,218 | 3,811,380 | 2 | % | |||||||
Tangible common equity (1) | 2,063,607 | 1,970,506 | 5 | % | |||||||
(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 Third Quarter 2016 Results
October 19, 2016
Page 22
Umpqua Holdings Corporation Residential Mortgage Banking Activity | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Seq. Quarter | Year over Year | |||||||||||||||||||
Residential mortgage servicing rights: | ||||||||||||||||||||||||||
Residential mortgage loans serviced for others | $ | 13,880,660 | $ | 13,564,242 | $ | 13,304,468 | $ | 13,047,266 | $ | 12,693,451 | 2 | % | 9 | % | ||||||||||||
MSR asset, at fair value | 114,446 | 112,095 | 117,172 | 131,817 | 124,814 | 2 | % | (8 | )% | |||||||||||||||||
MSR as % of serviced portfolio | 0.82 | % | 0.83 | % | 0.88 | % | 1.01 | % | 0.98 | % | ||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 45,631 | $ | 42,083 | $ | 28,409 | $ | 25,363 | $ | 26,904 | 8 | % | 70 | % | ||||||||||||
Servicing | 9,401 | 8,640 | 7,642 | 7,546 | 7,240 | 9 | % | 30 | % | |||||||||||||||||
Change in fair value of MSR asset | (7,826 | ) | (13,940 | ) | (20,625 | ) | (469 | ) | (10,103 | ) | (44 | )% | (23 | )% | ||||||||||||
Total | $ | 47,206 | $ | 36,783 | $ | 15,426 | $ | 32,440 | $ | 24,041 | 28 | % | 96 | % | ||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - portfolio | $ | 305,648 | $ | 365,926 | $ | 332,918 | $ | 352,465 | $ | 446,088 | (16 | )% | (31 | )% | ||||||||||||
Closed loan volume - for-sale | 1,118,526 | 1,046,349 | 764,076 | 794,820 | 843,720 | 7 | % | 33 | % | |||||||||||||||||
Closed loan volume - total | $ | 1,424,174 | $ | 1,412,275 | $ | 1,096,994 | $ | 1,147,285 | $ | 1,289,808 | 1 | % | 10 | % | ||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on for-sale volume | 4.08 | % | 4.02 | % | 3.72 | % | 3.19 | % | 3.19 | % | 0.06 | 0.89 | ||||||||||||||
Nine months ended | % Change | |||||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | Year over Year | ||||||||||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 116,123 | $ | 92,069 | 26 | % | ||||||||||||||||||||
Servicing | 25,683 | 20,467 | 25 | % | ||||||||||||||||||||||
Change in fair value of MSR asset | (42,391 | ) | (20,254 | ) | 109 | % | ||||||||||||||||||||
Total | $ | 99,415 | $ | 92,282 | 8 | % | ||||||||||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - portfolio | $ | 1,004,492 | $ | 1,203,949 | (17 | )% | ||||||||||||||||||||
Closed loan volume - for-sale | 2,928,951 | 2,703,100 | 8 | % | ||||||||||||||||||||||
Closed loan volume - total | $ | 3,933,443 | $ | 3,907,049 | 1 | % | ||||||||||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on for-sale volume | 3.96 | % | 3.41 | % | 0.55 | |||||||||||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
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