Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2018

Schedule Of Carrying Value And Fair Value Of Financial Instruments Not Recorded At Fair Value

The following table presents estimated fair values of the Company's financial instruments as of March 31, 2018 and December 31, 2017, whether or not recognized or recorded at fair value in the Condensed Consolidated Balance Sheets:



(in thousands)		March 31, 2018				December 31, 2017
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
FINANCIAL ASSETS:
Cash and cash equivalents	1	$	569,189	$	569,189	$	634,280	$	634,280
Equity and other investment securities	1,2	63,295		63,295		12,255		12,255
Investment securities available for sale	1,2	2,947,414		2,947,414		3,065,769		3,065,769
Investment securities held to maturity	3	3,667		4,669		3,803		4,906
Loans held for sale	2	299,739		299,739		259,518		259,518
Loans and leases, net (1)	3	19,172,656		19,047,732		18,939,576		18,936,038
Restricted equity securities	1	43,501		43,501		43,508		43,508
Residential mortgage servicing rights	3	164,760		164,760		153,151		153,151
Bank owned life insurance assets	1	307,745		307,745		306,864		306,864
Derivatives	2,3	19,145		19,145		32,256		32,256
Visa Class B common stock	3	—		90,622		—		86,380
FINANCIAL LIABILITIES:
Deposits	1,2	$	20,106,856	$	20,079,490	$	19,948,300	$	19,930,568
Securities sold under agreements to repurchase	2	291,984		291,984		294,299		294,299
Term debt	2	801,868		783,741		802,357		790,532
Junior subordinated debentures, at fair value	3	278,410		278,410		277,155		277,155
Junior subordinated debentures, at amortized cost	3	88,895		72,044		100,609		81,944
Derivatives	2	22,675		22,675		9,288		9,288

Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017:



(in thousands)	March 31, 2018
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Equity and other investment securities
Investments in mutual funds and other securities	$	50,933	$	50,933	$	—	$	—
Equity securities held in rabbi trusts	12,293		12,293		—		—
Other investments securities (1)	69		—		69		—
Investment securities available for sale
U.S. Treasury and agencies	39,518		—		39,518		—
Obligations of states and political subdivisions	299,551		—		299,551		—
Residential mortgage-backed securities and collateralized mortgage obligations	2,608,345		—		2,608,345		—
Loans held for sale, at fair value	299,739		—		299,739		—
Residential mortgage servicing rights, at fair value	164,760		—		—		164,760
Derivatives
Interest rate lock commitments	5,874		—		—		5,874
Interest rate forward sales commitments	1,013		—		1,013		—
Interest rate swaps	12,206		—		12,206		—
Foreign currency derivative	52		—		52		—
Total assets measured at fair value	$	3,494,353	$	63,226	$	3,260,493	$	170,634
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	278,410	$	—	$	—	$	278,410
Derivatives
Interest rate forward sales commitments	1,145		—		1,145		—
Interest rate swaps	21,424		—		21,424		—
Foreign currency derivative	106		—		106		—
Total liabilities measured at fair value	$	301,085	$	—	$	22,675	$	278,410

(1) Other investment securities includes securities held by Umpqua Investments as trading debt securities.



(in thousands)	December 31, 2017
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Trading securities
Obligations of states and political subdivisions	$	273	$	—	$	273	$	—
Equity securities	11,982		11,982		—		—
Investment securities available for sale
U.S. Treasury and agencies	39,698		—		39,698		—
Obligations of states and political subdivisions	308,456		—		308,456		—
Residential mortgage-backed securities and collateralized mortgage obligations	2,665,645		—		2,665,645		—
Investments in mutual funds and other securities	51,970		51,970				—
Loans held for sale, at fair value	259,518		—		259,518		—
Residential mortgage servicing rights, at fair value	153,151		—		—		153,151
Derivatives
Interest rate lock commitments	4,752		—		—		4,752
Interest rate forward sales commitments	286		—		286		—
Interest rate swaps	26,081		—		26,081		—
Foreign currency derivative	1,137		—		1,137		—
Total assets measured at fair value	$	3,522,949	$	63,952	$	3,301,094	$	157,903
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	277,155	$	—	$	—	$	277,155
Derivatives
Interest rate forward sales commitments	567		—		567		—
Interest rate swaps	7,229		—		7,229		—
Foreign currency derivative	1,492		—		1,492		—
Total liabilities measured at fair value	$	286,443	$	—	$	9,288	$	277,155

Schedule of a Description of the Valuation Technique, Unobservable Input, and Qualitative Information for the Company's Assets and Liabilities Classified as Level 3

The following table provides a description of the valuation technique, significant unobservable inputs, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at March 31, 2018:



Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average
Residential mortgage servicing rights	Discounted cash flow
		Constant Prepayment Rate	11.13%
		Discount Rate	9.69%
Interest rate lock commitment	Internal Pricing Model
		Pull-through rate	88.02%
Junior subordinated debentures	Discounted cash flow
		Credit Spread	4.97%

Schedule Of Reconciliation Of Assets And Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) On A Recurring Basis

The following tables provide a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three months ended March 31, 2018 and 2017:



(in thousands)
Three Months Ended March 31,	Beginning Balance		Change included in earnings			Change in fair values included in comprehensive income (loss)		Purchases and issuances		Sales and settlements			Ending Balance		Net change in unrealized gains or (losses) relating to items held at end of period
2018
Residential mortgage servicing rights	$	153,151	$	5,079		$	—	$	6,530	$	—		$	164,760	$	8,434
Interest rate lock commitment, net	4,752		(1,253		)	—		6,433		(4,058		)	5,874		5,874
Junior subordinated debentures, at fair value	277,155		3,775			1,683		—		(4,203		)	278,410		5,458

2017
Residential mortgage servicing rights	$	142,973	$	(7,670	)	$	—	$	7,041	$	—		$	142,344	$	(3,955	)
Interest rate lock commitment, net	4,076		797			—		10,649		(9,228		)	6,294		6,294
Junior subordinated debentures, at fair value	262,209		4,680			—		—		(3,284		)	263,605		4,680

Fair Value Assets And Liabilities Measured On Nonrecurring Basis

The following tables present information about the Company's assets and liabilities measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting period. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported upon.



(in thousands)	March 31, 2018
	Total		Level 1		Level 2		Level 3
Loans and leases	$	27,535	$	—	$	—	$	27,535
Other real estate owned	112		—		—		112
	$	27,647	$	—	$	—	$	27,647



(in thousands)	December 31, 2017
	Total		Level 1		Level 2		Level 3
Loans and leases	$	75,121	$	—	$	—	$	75,121
Other real estate owned	68		—		—		68
	$	75,189	$	—	$	—	$	75,189

Losses Resulting From Nonrecurring Fair Value Adjustments

The following table presents the losses resulting from nonrecurring fair value adjustments for the three months ended March 31, 2018 and 2017:



(in thousands)	Three Months Ended
	March 31, 2018		March 31, 2017
Loans and leases	$	14,039	$	11,242
Other real estate owned	5		67
Total loss from nonrecurring measurements	$	14,044	$	11,309

Fair Value Option

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option as of March 31, 2018 and December 31, 2017:




(in thousands)	March 31, 2018						December 31, 2017
	Fair Value		Aggregate Unpaid Principal Balance		Fair Value Less Aggregate Unpaid Principal Balance		Fair Value		Aggregate Unpaid Principal Balance		Fair Value Less Aggregate Unpaid Principal Balance
Loans held for sale	$	299,739	$	291,248	$	8,491	$	259,518	$	250,721	$	8,797

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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