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

6 Months Ended

Jun. 30, 2017

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

The following tables summarize 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, 2017 and 2016:



(in thousands)	Three Months Ended June 30, 2017
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	49,006		$	59,117		$	17,966		$	10,203		$	136,292
Charge-offs	(809		)	(10,696		)	(407		)	(2,032		)	(13,944		)
Recoveries	1,457			1,511			113			781			3,862
(Recapture) provision	(2,240		)	10,125			379			2,393			10,657
Balance, end of period	$	47,414		$	60,057		$	18,051		$	11,345		$	136,867

	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




(in thousands)	Six Months Ended June 30, 2017
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	47,795		$	58,840		$	17,946		$	9,403		$	133,984
Charge-offs	(1,148		)	(20,800		)	(617		)	(4,381		)	(26,946		)
Recoveries	1,857			3,541			310			1,792			7,500
(Recapture) provision	(1,090		)	18,476			412			4,531			22,329
Balance, end of period	$	47,414		$	60,057		$	18,051		$	11,345		$	136,867

	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

The valuation allowance on purchased impaired loans was increased by provision expense, which includes amounts related to subsequent deterioration of purchased impaired loans of $96,000 for both the three and six months ended June 30, 2017, and $1.4 million for both the three and six months ended June 30, 2016. The valuation allowance on purchased impaired loans was decreased by recaptured provision of $133,000 and $214,000 for the three and six months ended June 30, 2017, respectively, and $71,000 and $847,000 for the three and six months ended June 30, 2016, respectively.

The following tables present the allowance and recorded investment in loans and leases by portfolio segment as of June 30, 2017 and 2016:



(in thousands)	June 30, 2017
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	43,968	$	59,694	$	17,442	$	11,312	$	132,416
Individually evaluated for impairment	712		43		—		—		755
Loans acquired with deteriorated credit quality	2,734		320		609		33		3,696
Total	$	47,414	$	60,057	$	18,051	$	11,345	$	136,867
Loans and leases:
Collectively evaluated for impairment	$	9,359,064	$	3,895,638	$	4,038,611	$	729,260	$	18,022,573
Individually evaluated for impairment	41,053		21,806		—		—		62,859
Loans acquired with deteriorated credit quality	190,454		5,213		39,568		475		235,710
Total	$	9,590,571	$	3,922,657	$	4,078,179	$	729,735	$	18,321,142



(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

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, 2017 and 2016:



(in thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Balance, beginning of period	$	3,495	$	3,482	$	3,611	$	3,574
Net charge to other expense	321		49		205		(43		)
Balance, end of period	$	3,816	$	3,531	$	3,816	$	3,531



(in thousands)
	Total
Unfunded loan and lease commitments:
June 30, 2017	$	4,479,108
June 30, 2016	$	4,006,031

Non-Covered Non-Accrual Loans And Loans Past Due

The following tables summarize our non-accrual loans and leases and loans and leases past due, by loan and lease class, as of June 30, 2017 and December 31, 2016:



(in thousands)	June 30, 2017
	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	$	1,015	$	959	$	32	$	2,006	$	3,632	$	3,396,041	$	3,401,679
Owner occupied term, net	3,150		926		—		4,076		6,313		2,583,006		2,593,395
Multifamily, net	522		—		—		522		376		2,963,953		2,964,851
Construction & development, net	—		—		—		—		—		464,690		464,690
Residential development, net	—		—		—		—		—		165,956		165,956
Commercial
Term, net	195		2		—		197		4,726		1,681,674		1,686,597
LOC & other, net	476		1,507		—		1,983		2,038		1,149,388		1,153,409
Leases and equipment finance, net	6,700		5,849		1,508		14,057		9,481		1,059,113		1,082,651
Residential
Mortgage, net (2)	12		4,727		38,389		43,128		—		2,978,203		3,021,331
Home equity loans & lines, net	1,246		246		2,984		4,476		—		1,052,372		1,056,848
Consumer & other, net	2,796		825		617		4,238		—		725,497		729,735
Total, net of deferred fees and costs	$	16,112	$	15,041	$	43,530	$	74,683	$	26,566	$	18,219,893	$	18,321,142

(1) Other includes purchased credit impaired loans of $235.7 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 $16.3 million at June 30, 2017.



(in thousands)	December 31, 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	$	718	$	1,027	$	1,047	$	2,792	$	2,100	$	3,325,550	$	3,330,442
Owner occupied term, net	974		4,539		1		5,514		4,391		2,589,150		2,599,055
Multifamily, net	—		—		—		—		476		2,858,480		2,858,956
Construction & development, net	—		—		—		—		—		463,625		463,625
Residential development, net	—		—		—		—		—		142,984		142,984
Commercial
Term, net	319		233		—		552		6,880		1,501,348		1,508,780
LOC & other, net	1,673		27		—		1,700		4,998		1,109,561		1,116,259
Leases and equipment finance, net	5,343		6,865		1,808		14,016		8,920		927,652		950,588
Residential
Mortgage, net (2)	10		3,114		33,703		36,827		—		2,851,144		2,887,971
Home equity loans & lines, net	289		848		2,080		3,217		—		1,008,627		1,011,844
Consumer & other, net	3,261		1,185		587		5,033		—		633,126		638,159
Total, net of deferred fees and costs	$	12,587	$	17,838	$	39,226	$	69,651	$	27,765	$	17,411,247	$	17,508,663

(1) Other includes purchased credit impaired loans of $280.4 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 $10.9 million at December 31, 2016.

Non-Covered Impaired Loans

The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and six months ended June 30, 2017 and 2016:



(in thousands)	Three Months Ended				Three Months Ended
	June 30, 2017				June 30, 2016
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Commercial real estate
Non-owner occupied term, net	$	17,743	$	149	$	12,361	$	132
Owner occupied term, net	10,746		66		6,451		33
Multifamily, net	3,901		31		3,904		30
Construction & development, net	1,091		11		1,701		21
Residential development, net	7,221		75		7,778		80
Commercial
Term, net	12,697		119		19,019		40
LOC & other, net	5,515		38		3,084		20
Leases and equipment finance, net	370		—		—		—
Total, net of deferred fees and costs	$	59,284	$	489	$	54,298	$	356




(in thousands)	Six Months Ended				Six Months Ended
	June 30, 2017				June 30, 2016
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Commercial real estate
Non-owner occupied term, net	$	16,752	$	298	$	10,935	$	195
Owner occupied term, net	9,322		127		9,137		86
Multifamily, net	3,924		61		3,673		60
Construction & development, net	1,238		22		1,335		40
Residential development, net	7,370		150		7,905		161
Commercial
Term, net	14,079		154		21,672		113
LOC & other, net	4,960		50		3,237		40
Leases and equipment finance, net	246		—		—		—
Total, net of deferred fees and costs	$	57,891	$	862	$	57,894	$	695

The following tables summarize our impaired loans by loan class as of June 30, 2017 and December 31, 2016:



(in thousands)	June 30, 2017
	Unpaid		Recorded Investment
	Principal		Without		With		Related
	Balance		Allowance		Allowance		Allowance
Commercial real estate
Non-owner occupied term, net	$	18,907	$	2,110	$	16,673	$	345
Owner occupied term, net	10,483		3,677		6,387		110
Multifamily, net	4,002		377		3,519		86
Construction & development, net	1,091		—		1,091		25
Residential development, net	7,219		—		7,219		146
Commercial
Term, net	21,976		6,574		10,009		41
LOC & other, net	5,579		2,038		2,911		2
Leases and equipment finance, net	274		274		—		—
Total, net of deferred fees and costs	$	69,531	$	15,050	$	47,809	$	755



(in thousands)	December 31, 2016
	Unpaid		Recorded Investment
	Principal		Without		With		Related
	Balance		Allowance		Allowance		Allowance
Commercial real estate
Non-owner occupied term, net	$	19,797	$	278	$	19,116	$	524
Owner occupied term, net	8,467		1,768		6,445		131
Multifamily, net	4,015		476		3,520		123
Construction & development, net	1,091		—		1,091		9
Residential development, net	7,304		—		7,304		72
Commercial
Term, net	16,875		5,982		3,239		8
LOC & other, net	8,279		4,755		—		—
Total, net of deferred fees and costs	$	65,828	$	13,259	$	40,715	$	867

Internal Risk Rating By Loan Class

The following tables summarize our internal risk rating by loan and lease class for the loan and lease portfolio, including purchased credit impaired loans, as of June 30, 2017 and December 31, 2016:



(in thousands)	June 30, 2017
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,298,489	$	41,571	$	41,523	$	145	$	1,168	$	18,783	$	3,401,679
Owner occupied term, net	2,476,143		53,530		51,533		653		1,472		10,064		2,593,395
Multifamily, net	2,937,224		11,217		12,514		—		—		3,896		2,964,851
Construction & development, net	461,099		—		2,500		—		—		1,091		464,690
Residential development, net	157,548		—		1,189		—		—		7,219		165,956
Commercial
Term, net	1,638,555		14,510		16,137		10		802		16,583		1,686,597
LOC & other, net	1,097,943		20,194		30,323		—		—		4,949		1,153,409
Leases and equipment finance, net	1,058,839		6,700		5,849		9,767		1,222		274		1,082,651
Residential
Mortgage, net (2)	2,948,765		2,770		68,481		—		1,315		—		3,021,331
Home equity loans & lines, net	1,050,235		2,150		3,962		—		501		—		1,056,848
Consumer & other, net	725,458		3,622		581		—		74		—		729,735
Total, net of deferred fees and costs	$	17,850,298	$	156,264	$	234,592	$	10,575	$	6,554	$	62,859	$	18,321,142

(1) The percentage of impaired loans classified as pass/watch, special mention, and substandard was 6.8%, 1.7% and 91.5%, respectively, as of June 30, 2017.

(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 $16.3 million at June 30, 2017, which is included in the substandard category.



(in thousands)	December 31, 2016
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,205,241	$	55,194	$	48,699	$	1,368	$	546	$	19,394	$	3,330,442
Owner occupied term, net	2,466,247		75,189		46,781		972		1,653		8,213		2,599,055
Multifamily, net	2,828,370		11,903		14,687		—		—		3,996		2,858,956
Construction & development, net	458,328		1,712		2,494		—		—		1,091		463,625
Residential development, net	134,491		—		1,189		—		—		7,304		142,984
Commercial
Term, net	1,458,699		15,716		24,678		119		347		9,221		1,508,780
LOC & other, net	1,063,305		10,565		37,387		3		244		4,755		1,116,259
Leases and equipment finance, net	927,378		5,614		6,866		9,752		978		—		950,588
Residential
Mortgage, net (2)	2,830,547		1,803		53,607		—		2,014		—		2,887,971
Home equity loans & lines, net	1,006,647		1,490		2,727		—		980		—		1,011,844
Consumer & other, net	633,098		4,446		527		—		88		—		638,159
Total, net of deferred fees and costs	$	17,012,351	$	183,632	$	239,642	$	12,214	$	6,850	$	53,974	$	17,508,663

(1) The percentage of impaired loans classified as pass/watch, special mention, substandard and doubtful was 8.1%, 6.5%, 82.5%, and 2.9%, respectively, as of December 31, 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 $10.9 million at December 31, 2016, which is included in the substandard category.

Schedule Of Troubled Debt Restructurings

The following tables present newly restructured loans that occurred during the three and six months ended June 30, 2017 and 2016:



(in thousands)	Three Months Ended June 30, 2017
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications
Commercial, net	$	—	$	—	$	—	$	—	$	9,874	$	9,874
Residential, net	—		—		—		—		881		881
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	10,755	$	10,755

	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




	Six Months Ended June 30, 2017
	Rate		Term		Interest Only		Payment		Combination		Total
	Modifications		Modifications		Modifications		Modifications		Modifications		Modifications
Commercial, net	$	—	$	—	$	—	$	—	$	12,793	$	12,793
Residential, net	—				—		—		1,134		1,134
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	13,927	$	13,927

(in thousands)	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

The following tables present troubled debt restructurings by accrual versus non-accrual status and by loan class as of June 30, 2017 and December 31, 2016:



(in thousands)	June 30, 2017
	Accrual		Non-Accrual		Total
	Status		Status		Modifications
Commercial real estate, net	$	30,410	$	—	$	30,410
Commercial, net	15,545		257		15,802
Residential, net	6,906		—		6,906
Total, net of deferred fees and costs	$	52,861	$	257	$	53,118



(in thousands)	December 31, 2016
	Accrual		Non-Accrual		Total
	Status		Status		Modifications
Commercial real estate, net	$	30,563	$	—	$	30,563
Commercial, net	3,054		3,345		6,399
Residential, net	7,050		—		7,050
Total, net of deferred fees and costs	$	40,667	$	3,345	$	44,012