OREGON (State or Other Jurisdiction of Incorporation or Organization) | 001-34624 (Commission File Number) | 93-1261319 (I.R.S. Employer Identification Number) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | EXHIBITS |
UMPQUA HOLDINGS CORPORATION (Registrant) | |
Dated: July 18, 2018 | By:/s/ Andrew H. Ognall Andrew H. Ognall Executive Vice President, General Counsel and Secretary |
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 |
• | $8.2 million in restructuring charges related to the organization simplification and design and procurement phases of Umpqua Next Gen, including $4.1 million in severance-related expense and $4.1 million in professional fees. This compares to $0.8 million in severance-related expense and $2.7 in professional fees in the prior quarter. |
• | $5.4 million negative adjustment related to the fair value change of the MSR asset, compared to $5.1 million gain in the prior quarter and $8.3 million negative adjustment in the same period of the prior year. |
• | $0.3 million gain related to the fair value change of the debt capital market swap derivatives, compared to a gain of $1.1 million in the prior quarter and a loss of $0.8 million in the same period of the prior year. |
• | $2.6 million of exit or disposal costs, compared to $2.5 million in the prior quarter and $0.7 million in the same period of the prior year. |
• | $1.4 million unrealized holding loss on equity securities, compared to no gain or loss recorded in the prior quarters. |
• | Net interest income increased by $4.1 million, or 2%, attributable to the strong growth in loans and leases and the benefit from increases in short-term interest rates; |
• | Provision for loan and lease losses decreased by $0.3 million, driven primarily by lower net charge-offs, which decreased by four basis points to 0.22% of average loans and leases (annualized); |
• | Non-interest income decreased by $6.9 million, reflecting the $10.5 million linked quarter change in fair value of the MSR asset (see notable items above), partially offset by higher net revenue from the origination and sale of residential mortgages; |
• | Non-interest expense increased by $9.5 million, driven primarily by higher restructuring charges (see notable items above) and higher mortgage banking-related expense, consistent with the increase in mortgage originations; |
• | Non-performing assets to total assets increased by one basis point to 0.34%; |
• | Estimated total risk-based capital ratio of 13.7% and estimated Tier 1 common to risk weighted assets ratio of 10.8%; |
• | Declared quarterly cash dividend of $0.20 per common share; and |
• | Repurchased 327,000 shares of common stock for $8.0 million. |
(In thousands, except per share data) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | |||||||||||||||
Total shareholders' equity | $ | 4,021,643 | $ | 4,013,882 | $ | 4,014,786 | $ | 3,985,260 | $ | 3,958,845 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | |||||||||||||||
Other intangible assets, net | 27,047 | 28,589 | 30,130 | 31,819 | 33,508 | |||||||||||||||
Tangible common shareholders' equity | $ | 2,206,945 | $ | 2,197,642 | $ | 2,197,005 | $ | 2,165,790 | $ | 2,137,686 | ||||||||||
Total assets | $ | 26,533,230 | $ | 25,875,643 | $ | 25,741,439 | $ | 25,695,663 | $ | 25,257,784 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | |||||||||||||||
Other intangible assets, net | 27,047 | 28,589 | 30,130 | 31,819 | 33,508 | |||||||||||||||
Tangible assets | $ | 24,718,532 | $ | 24,059,403 | $ | 23,923,658 | $ | 23,876,193 | $ | 23,436,625 | ||||||||||
Common shares outstanding at period end | 220,205 | 220,461 | 220,149 | 220,225 | 220,205 | |||||||||||||||
Total shareholders' equity to total assets ratio | 15.16 | % | 15.51 | % | 15.60 | % | 15.51 | % | 15.67 | % | ||||||||||
Tangible common equity ratio | 8.93 | % | 9.13 | % | 9.18 | % | 9.07 | % | 9.12 | % | ||||||||||
Book value per common share | $ | 18.26 | $ | 18.21 | $ | 18.24 | $ | 18.10 | $ | 17.98 | ||||||||||
Tangible book value per common share | $ | 10.02 | $ | 9.97 | $ | 9.98 | $ | 9.83 | $ | 9.71 |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(In thousands, except per share data) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans and leases | $ | 237,343 | $ | 227,738 | $ | 223,206 | $ | 223,321 | $ | 212,998 | 4 | % | 11 | % | ||||||||||||
Interest and dividends on investments: | ||||||||||||||||||||||||||
Taxable | 15,678 | 15,699 | 14,857 | 13,979 | 15,220 | 0 | % | 3 | % | |||||||||||||||||
Exempt from federal income tax | 2,057 | 2,128 | 2,121 | 2,125 | 2,237 | (3 | )% | (8 | )% | |||||||||||||||||
Dividends | 433 | 468 | 386 | 357 | 360 | (7 | )% | 20 | % | |||||||||||||||||
Temporary investments and interest bearing deposits | 2,080 | 1,164 | 1,565 | 934 | 324 | 79 | % | 542 | % | |||||||||||||||||
Total interest income | 257,591 | 247,197 | 242,135 | 240,716 | 231,139 | 4 | % | 11 | % | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 21,259 | 15,610 | 13,241 | 12,052 | 10,641 | 36 | % | 100 | % | |||||||||||||||||
Securities sold under agreement to repurchase and federal funds purchased | 155 | 63 | 43 | 81 | 321 | 146 | % | (52 | )% | |||||||||||||||||
Term debt | 3,478 | 3,361 | 3,496 | 3,491 | 3,662 | 3 | % | (5 | )% | |||||||||||||||||
Junior subordinated debentures | 5,400 | 4,932 | 4,734 | 4,628 | 4,437 | 9 | % | 22 | % | |||||||||||||||||
Total interest expense | 30,292 | 23,966 | 21,514 | 20,252 | 19,061 | 26 | % | 59 | % | |||||||||||||||||
Net interest income | 227,299 | 223,231 | 220,621 | 220,464 | 212,078 | 2 | % | 7 | % | |||||||||||||||||
Provision for loan and lease losses | 13,319 | 13,656 | 12,928 | 11,997 | 10,657 | (2 | )% | 25 | % | |||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Service charges on deposits | 15,520 | 14,995 | 15,413 | 15,849 | 15,478 | 4 | % | 0 | % | |||||||||||||||||
Brokerage revenue | 4,161 | 4,194 | 4,226 | 3,832 | 3,903 | (1 | )% | 7 | % | |||||||||||||||||
Residential mortgage banking revenue, net | 33,163 | 38,438 | 42,118 | 33,430 | 33,894 | (14 | )% | (2 | )% | |||||||||||||||||
Gain (loss) on sale of investment securities, net | 14 | — | — | (6 | ) | 35 | nm | (60 | )% | |||||||||||||||||
Unrealized holding losses on equity securities not held for trading | (1,432 | ) | — | — | — | — | nm | nm | ||||||||||||||||||
Gain on loan sales, net | 1,348 | 1,230 | 3,688 | 7,969 | 3,310 | 10 | % | (59 | )% | |||||||||||||||||
Loss on junior subordinated debentures carried at fair value | — | — | (10,010 | ) | (1,590 | ) | (1,572 | ) | 0 | % | (100 | )% | ||||||||||||||
BOLI income | 2,060 | 2,070 | 2,015 | 2,041 | 2,089 | 0 | % | (1 | )% | |||||||||||||||||
Other income | 16,817 | 17,640 | 13,000 | 13,877 | 13,982 | (5 | )% | 20 | % | |||||||||||||||||
Total non-interest income | 71,651 | 78,567 | 70,450 | 75,402 | 71,119 | (9 | )% | 1 | % | |||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 113,340 | 106,551 | 114,414 | 108,732 | 108,561 | 6 | % | 4 | % | |||||||||||||||||
Occupancy and equipment, net | 37,584 | 38,661 | 37,269 | 37,648 | 36,955 | (3 | )% | 2 | % | |||||||||||||||||
Intangible amortization | 1,542 | 1,541 | 1,689 | 1,689 | 1,689 | 0 | % | (9 | )% | |||||||||||||||||
FDIC assessments | 4,692 | 4,480 | 2,075 | 4,405 | 4,447 | 5 | % | 6 | % | |||||||||||||||||
Gain on other real estate owned, net | (92 | ) | (38 | ) | (83 | ) | (99 | ) | (457 | ) | 142 | % | (80 | )% | ||||||||||||
Merger related expenses | — | — | — | 6,664 | 1,640 | 0 | % | (100 | )% | |||||||||||||||||
Other expenses | 38,506 | 34,918 | 37,422 | 29,315 | 31,186 | 10 | % | 23 | % | |||||||||||||||||
Total non-interest expense | 195,572 | 186,113 | 192,786 | 188,354 | 184,021 | 5 | % | 6 | % | |||||||||||||||||
Income before provision for income taxes | 90,059 | 102,029 | 85,357 | 95,515 | 88,519 | (12 | )% | 2 | % | |||||||||||||||||
Provision for income taxes | 22,273 | 24,360 | 3,486 | 34,182 | 31,707 | (9 | )% | (30 | )% | |||||||||||||||||
Net income | 67,786 | 77,669 | 81,871 | 61,333 | 56,812 | (13 | )% | 19 | % | |||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | 4 | 6 | 16 | 14 | 14 | (33 | )% | (71 | )% | |||||||||||||||||
Net earnings available to common shareholders | $ | 67,782 | $ | 77,663 | $ | 81,855 | $ | 61,319 | $ | 56,798 | (13 | )% | 19 | % | ||||||||||||
Weighted average basic shares outstanding | 220,283 | 220,370 | 220,194 | 220,215 | 220,310 | 0 | % | 0 | % | |||||||||||||||||
Weighted average diluted shares outstanding | 220,647 | 220,825 | 220,873 | 220,755 | 220,753 | 0 | % | 0 | % | |||||||||||||||||
Earnings per common share – basic | $ | 0.31 | $ | 0.35 | $ | 0.37 | $ | 0.28 | $ | 0.26 | (11 | )% | 19 | % | ||||||||||||
Earnings per common share – diluted | $ | 0.31 | $ | 0.35 | $ | 0.37 | $ | 0.28 | $ | 0.26 | (11 | )% | 19 | % | ||||||||||||
nm = not meaningful |
Umpqua Holdings Corporation | |||||||||||
Consolidated Statements of Income | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended | % Change | ||||||||||
(In thousands, except per share data) | Jun 30, 2018 | Jun 30, 2017 | Year over Year | ||||||||
Interest income | |||||||||||
Loans and leases | $ | 465,081 | $ | 418,994 | 11 | % | |||||
Interest and dividends on investments: | |||||||||||
Taxable | 31,377 | 29,151 | 8 | % | |||||||
Exempt from federal income tax | 4,185 | 4,479 | (7 | )% | |||||||
Dividends | 901 | 748 | 20 | % | |||||||
Temporary investments and interest bearing deposits | 3,244 | 1,881 | 72 | % | |||||||
Total interest income | 504,788 | 455,253 | 11 | % | |||||||
Interest expense | |||||||||||
Deposits | 36,869 | 20,289 | 82 | % | |||||||
Securities sold under agreement to repurchase and federal funds purchased | 218 | 351 | (38 | )% | |||||||
Term debt | 6,839 | 7,172 | (5 | )% | |||||||
Junior subordinated debentures | 10,332 | 8,638 | 20 | % | |||||||
Total interest expense | 54,258 | 36,450 | 49 | % | |||||||
Net interest income | 450,530 | 418,803 | 8 | % | |||||||
Provision for loan and lease losses | 26,975 | 22,329 | 21 | % | |||||||
Non-interest income | |||||||||||
Service charges on deposits | 30,515 | 30,207 | 1 | % | |||||||
Brokerage revenue | 8,355 | 8,025 | 4 | % | |||||||
Residential mortgage banking revenue, net | 71,601 | 60,728 | 18 | % | |||||||
Gain on sale of investment securities, net | 14 | 33 | (58 | )% | |||||||
Unrealized holding losses on equity securities not held for trading | (1,432 | ) | — | nm | |||||||
Gain on loan sales, net | 2,578 | 5,064 | (49 | )% | |||||||
Loss on junior subordinated debentures carried at fair value | — | (3,127 | ) | (100 | )% | ||||||
BOLI income | 4,130 | 4,158 | (1 | )% | |||||||
Other income | 34,457 | 26,256 | 31 | % | |||||||
Total non-interest income | 150,218 | 131,344 | 14 | % | |||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 219,891 | 215,034 | 2 | % | |||||||
Occupancy and equipment, net | 76,245 | 75,628 | 1 | % | |||||||
Intangible amortization | 3,083 | 3,378 | (9 | )% | |||||||
FDIC assessments | 9,172 | 8,534 | 7 | % | |||||||
Gain on other real estate owned, net | (130 | ) | (375 | ) | (65 | )% | |||||
Merger related expenses | — | 2,660 | (100 | )% | |||||||
Other expenses | 73,424 | 61,876 | 19 | % | |||||||
Total non-interest expense | 381,685 | 366,735 | 4 | % | |||||||
Income before provision for income taxes | 192,088 | 161,083 | 19 | % | |||||||
Provision for income taxes | 46,633 | 58,268 | (20 | )% | |||||||
Net income | 145,455 | 102,815 | 41 | % | |||||||
Dividends and undistributed earnings allocated to participating securities | 10 | 26 | (62 | )% | |||||||
Net earnings available to common shareholders | $ | 145,445 | $ | 102,789 | 41 | % | |||||
Weighted average basic shares outstanding | 220,326 | 220,298 | 0 | % | |||||||
Weighted average diluted shares outstanding | 220,760 | 220,790 | 0 | % | |||||||
Earnings per common share – basic | $ | 0.66 | $ | 0.47 | 40 | % | |||||
Earnings per common share – diluted | $ | 0.66 | $ | 0.47 | 40 | % | |||||
nm = not meaningful |
Umpqua Holdings Corporation Consolidated Balance Sheets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||
(In thousands, except per share data) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 314,513 | $ | 304,681 | $ | 330,856 | $ | 304,760 | $ | 320,027 | 3 | % | (2 | )% | ||||||||||||
Interest bearing cash and temporary investments | 488,499 | 264,508 | 303,424 | 540,806 | 295,937 | 85 | % | 65 | % | |||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Equity and other, at fair value | 64,297 | 63,295 | 12,255 | 11,919 | 11,467 | 2 | % | 461 | % | |||||||||||||||||
Available for sale, at fair value | 2,854,398 | 2,947,414 | 3,065,769 | 3,047,358 | 3,132,566 | (3 | )% | (9 | )% | |||||||||||||||||
Held to maturity, at amortized cost | 3,586 | 3,667 | 3,803 | 3,905 | 4,017 | (2 | )% | (11 | )% | |||||||||||||||||
Loans held for sale, at fair value | 432,642 | 299,739 | 259,518 | 417,470 | 451,350 | 44 | % | (4 | )% | |||||||||||||||||
Loans and leases | 19,693,955 | 19,314,589 | 19,080,184 | 18,677,762 | 18,321,142 | 2 | % | 7 | % | |||||||||||||||||
Allowance for loan and lease losses | (144,556 | ) | (141,933 | ) | (140,608 | ) | (139,503 | ) | (136,867 | ) | 2 | % | 6 | % | ||||||||||||
Loans and leases, net | 19,549,399 | 19,172,656 | 18,939,576 | 18,538,259 | 18,184,275 | 2 | % | 8 | % | |||||||||||||||||
Restricted equity securities | 42,320 | 43,501 | 43,508 | 45,509 | 45,511 | (3 | )% | (7 | )% | |||||||||||||||||
Premises and equipment, net | 245,954 | 259,354 | 269,182 | 276,316 | 288,853 | (5 | )% | (15 | )% | |||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 0 | % | 0 | % | |||||||||||||||||
Other intangible assets, net | 27,047 | 28,589 | 30,130 | 31,819 | 33,508 | (5 | )% | (19 | )% | |||||||||||||||||
Residential mortgage servicing rights, at fair value | 166,217 | 164,760 | 153,151 | 141,225 | 141,832 | 1 | % | 17 | % | |||||||||||||||||
Other real estate owned | 12,101 | 13,055 | 11,734 | 4,160 | 4,804 | (7 | )% | 152 | % | |||||||||||||||||
Bank owned life insurance | 309,844 | 307,745 | 306,864 | 305,572 | 303,894 | 1 | % | 2 | % | |||||||||||||||||
Other assets | 234,762 | 215,028 | 224,018 | 238,934 | 252,092 | 9 | % | (7 | )% | |||||||||||||||||
Total assets | $ | 26,533,230 | $ | 25,875,643 | $ | 25,741,439 | $ | 25,695,663 | $ | 25,257,784 | 3 | % | 5 | % | ||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 20,744,526 | $ | 20,106,856 | $ | 19,948,300 | $ | 19,851,910 | $ | 19,459,950 | 3 | % | 7 | % | ||||||||||||
Securities sold under agreements to repurchase | 273,666 | 291,984 | 294,299 | 321,542 | 330,189 | (6 | )% | (17 | )% | |||||||||||||||||
Term debt | 801,739 | 801,868 | 802,357 | 852,306 | 852,219 | 0 | % | (6 | )% | |||||||||||||||||
Junior subordinated debentures, at fair value | 280,669 | 278,410 | 277,155 | 266,875 | 265,423 | 1 | % | 6 | % | |||||||||||||||||
Junior subordinated debentures, at amortized cost | 88,838 | 88,895 | 100,609 | 100,690 | 100,770 | 0 | % | (12 | )% | |||||||||||||||||
Deferred tax liability, net | 39,328 | 39,277 | 37,503 | 51,423 | 34,296 | 0 | % | 15 | % | |||||||||||||||||
Other liabilities | 282,821 | 254,471 | 266,430 | 265,657 | 256,092 | 11 | % | 10 | % | |||||||||||||||||
Total liabilities | 22,511,587 | 21,861,761 | 21,726,653 | 21,710,403 | 21,298,939 | 3 | % | 6 | % | |||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Common stock | 3,509,146 | 3,515,506 | 3,517,258 | 3,516,558 | 3,514,094 | 0 | % | 0 | % | |||||||||||||||||
Retained earnings | 569,933 | 546,330 | 522,520 | 476,226 | 454,802 | 4 | % | 25 | % | |||||||||||||||||
Accumulated other comprehensive loss | (57,436 | ) | (47,954 | ) | (24,992 | ) | (7,524 | ) | (10,051 | ) | 20 | % | 471 | % | ||||||||||||
Total shareholders' equity | 4,021,643 | 4,013,882 | 4,014,786 | 3,985,260 | 3,958,845 | 0 | % | 2 | % | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 26,533,230 | $ | 25,875,643 | $ | 25,741,439 | $ | 25,695,663 | $ | 25,257,784 | 3 | % | 5 | % | ||||||||||||
Common shares outstanding at period end | 220,205 | 220,461 | 220,149 | 220,225 | 220,205 | 0 | % | 0 | % | |||||||||||||||||
Book value per common share | $ | 18.26 | $ | 18.21 | $ | 18.24 | $ | 18.10 | $ | 17.98 | 0 | % | 2 | % | ||||||||||||
Tangible book value per common share | $ | 10.02 | $ | 9.97 | $ | 9.98 | $ | 9.83 | $ | 9.71 | 1 | % | 3 | % | ||||||||||||
Tangible equity - common | $ | 2,206,945 | $ | 2,197,642 | $ | 2,197,005 | $ | 2,165,790 | $ | 2,137,686 | 0 | % | 3 | % | ||||||||||||
Tangible common equity to tangible assets | 8.93 | % | 9.13 | % | 9.18 | % | 9.07 | % | 9.12 | % | (0.20 | ) | (0.19 | ) |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Loan and Lease Portfolio | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | $ | 3,525,001 | $ | 3,526,221 | $ | 3,491,137 | $ | 3,475,243 | $ | 3,401,679 | 0 | % | 4 | % | ||||||||||||
Owner occupied term, net | 2,484,960 | 2,476,287 | 2,488,251 | 2,467,995 | 2,593,395 | 0 | % | (4 | )% | |||||||||||||||||
Multifamily, net | 3,210,796 | 3,131,275 | 3,087,792 | 2,993,203 | 2,964,851 | 3 | % | 8 | % | |||||||||||||||||
Construction & development, net | 568,572 | 522,680 | 540,707 | 521,666 | 464,690 | 9 | % | 22 | % | |||||||||||||||||
Residential development, net | 183,114 | 179,871 | 165,865 | 186,400 | 165,956 | 2 | % | 10 | % | |||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 2,106,804 | 2,025,213 | 1,944,987 | 1,819,664 | 1,686,597 | 4 | % | 25 | % | |||||||||||||||||
Lines of credit & other, net | 1,152,841 | 1,147,028 | 1,166,173 | 1,134,045 | 1,153,409 | 1 | % | 0 | % | |||||||||||||||||
Leases & equipment finance, net | 1,265,843 | 1,228,709 | 1,167,503 | 1,137,732 | 1,082,651 | 3 | % | 17 | % | |||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 3,414,216 | 3,283,945 | 3,192,185 | 3,094,361 | 3,021,331 | 4 | % | 13 | % | |||||||||||||||||
Home equity loans & lines, net | 1,136,378 | 1,107,822 | 1,103,297 | 1,079,931 | 1,056,848 | 3 | % | 8 | % | |||||||||||||||||
Consumer & other, net | 645,430 | 685,538 | 732,287 | 767,522 | 729,735 | (6 | )% | (12 | )% | |||||||||||||||||
Total, net of deferred fees and costs | $ | 19,693,955 | $ | 19,314,589 | $ | 19,080,184 | $ | 18,677,762 | $ | 18,321,142 | 2 | % | 7 | % | ||||||||||||
Loan and leases mix: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | 18 | % | 18 | % | 18 | % | 19 | % | 19 | % | ||||||||||||||||
Owner occupied term, net | 13 | % | 13 | % | 13 | % | 13 | % | 14 | % | ||||||||||||||||
Multifamily, net | 16 | % | 16 | % | 16 | % | 16 | % | 16 | % | ||||||||||||||||
Construction & development, net | 3 | % | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||
Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 11 | % | 10 | % | 10 | % | 10 | % | 9 | % | ||||||||||||||||
Lines of credit & other, net | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Leases & equipment finance, net | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 17 | % | 17 | % | 17 | % | 16 | % | 16 | % | ||||||||||||||||
Home equity loans & lines, net | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Consumer & other, net | 3 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Deposits by Type/Core Deposits | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 6,819,325 | $ | 6,699,399 | $ | 6,505,628 | $ | 6,571,471 | $ | 6,112,480 | 2 | % | 12 | % | ||||||||||||
Demand, interest bearing | 2,321,691 | 2,354,873 | 2,384,133 | 2,394,240 | 2,371,386 | (1 | )% | (2 | )% | |||||||||||||||||
Money market | 6,161,907 | 6,546,704 | 7,037,891 | 6,700,261 | 6,755,707 | (6 | )% | (9 | )% | |||||||||||||||||
Savings | 1,465,154 | 1,482,560 | 1,446,860 | 1,444,801 | 1,427,677 | (1 | )% | 3 | % | |||||||||||||||||
Time | 3,976,449 | 3,023,320 | 2,573,788 | 2,741,137 | 2,792,700 | 32 | % | 42 | % | |||||||||||||||||
Total | $ | 20,744,526 | $ | 20,106,856 | $ | 19,948,300 | $ | 19,851,910 | $ | 19,459,950 | 3 | % | 7 | % | ||||||||||||
Total core deposits (1) | $ | 17,743,888 | $ | 18,007,169 | $ | 18,263,802 | $ | 18,005,730 | $ | 17,561,956 | (1 | )% | 1 | % | ||||||||||||
Deposit mix: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 33 | % | 33 | % | 33 | % | 33 | % | 32 | % | ||||||||||||||||
Demand, interest bearing | 11 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||
Money market | 30 | % | 33 | % | 35 | % | 34 | % | 35 | % | ||||||||||||||||
Savings | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | ||||||||||||||||
Time | 19 | % | 15 | % | 13 | % | 14 | % | 14 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Number of open accounts: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 402,771 | 399,721 | 397,427 | 394,755 | 389,767 | |||||||||||||||||||||
Demand, interest bearing | 77,918 | 78,181 | 78,853 | 79,899 | 80,594 | |||||||||||||||||||||
Money market | 55,393 | 54,752 | 55,175 | 55,659 | 55,795 | |||||||||||||||||||||
Savings | 162,414 | 162,841 | 162,453 | 162,556 | 161,369 | |||||||||||||||||||||
Time | 51,073 | 48,529 | 46,861 | 47,129 | 47,339 | |||||||||||||||||||||
Total | 749,569 | 744,024 | 740,769 | 739,998 | 734,864 | |||||||||||||||||||||
Average balance per account: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 16.9 | $ | 16.8 | $ | 16.4 | $ | 16.6 | $ | 15.7 | ||||||||||||||||
Demand, interest bearing | 29.8 | 30.1 | 30.2 | 30.0 | 29.4 | |||||||||||||||||||||
Money market | 111.2 | 119.6 | 127.6 | 120.4 | 121.1 | |||||||||||||||||||||
Savings | 9.0 | 9.1 | 8.9 | 8.9 | 8.8 | |||||||||||||||||||||
Time | 77.9 | 62.3 | 54.9 | 58.2 | 59.0 | |||||||||||||||||||||
Total | $ | 27.7 | $ | 27.0 | $ | 26.9 | $ | 26.8 | $ | 26.5 |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Non-performing Assets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||||||
Non-performing assets: | ||||||||||||||||||||||||||
Loans and leases on non-accrual status | $ | 43,485 | $ | 45,775 | $ | 51,465 | $ | 44,573 | $ | 26,566 | (5 | )% | 64 | % | ||||||||||||
Loans and leases past due 90+ days and accruing (1) | 34,494 | 25,478 | 30,994 | 29,073 | 27,252 | 35 | % | 27 | % | |||||||||||||||||
Total non-performing loans and leases | 77,979 | 71,253 | 82,459 | 73,646 | 53,818 | 9 | % | 45 | % | |||||||||||||||||
Other real estate owned | 12,101 | 13,055 | 11,734 | 4,160 | 4,804 | (7 | )% | 152 | % | |||||||||||||||||
Total non-performing assets | $ | 90,080 | $ | 84,308 | $ | 94,193 | $ | 77,806 | $ | 58,622 | 7 | % | 54 | % | ||||||||||||
Performing restructured loans and leases | $ | 27,144 | $ | 31,659 | $ | 32,157 | $ | 45,813 | $ | 52,861 | (14 | )% | (49 | )% | ||||||||||||
Loans and leases past due 31-89 days | $ | 45,114 | $ | 38,650 | $ | 43,870 | $ | 32,251 | $ | 31,153 | 17 | % | 45 | % | ||||||||||||
Loans and leases past due 31-89 days to total loans and leases | 0.23 | % | 0.20 | % | 0.23 | % | 0.17 | % | 0.17 | % | ||||||||||||||||
Non-performing loans and leases to total loans and leases (1) | 0.40 | % | 0.37 | % | 0.43 | % | 0.39 | % | 0.29 | % | ||||||||||||||||
Non-performing assets to total assets(1) | 0.34 | % | 0.33 | % | 0.37 | % | 0.30 | % | 0.23 | % |
(1) | Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $9.2 million, $6.3 million, $12.4 million, $12.3 million, and $16.3 million at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively. |
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 141,933 | $ | 140,608 | $ | 139,503 | $ | 136,867 | $ | 136,292 | ||||||||||||||||
Provision for loan and lease losses | 13,319 | 13,656 | 12,928 | 11,997 | 10,657 | (2 | )% | 25 | % | |||||||||||||||||
Charge-offs | (14,815 | ) | (15,812 | ) | (15,751 | ) | (13,222 | ) | (13,944 | ) | (6 | )% | 6 | % | ||||||||||||
Recoveries | 4,119 | 3,481 | 3,928 | 3,861 | 3,862 | 18 | % | 7 | % | |||||||||||||||||
Net charge-offs | (10,696 | ) | (12,331 | ) | (11,823 | ) | (9,361 | ) | (10,082 | ) | (13 | )% | 6 | % | ||||||||||||
Total allowance for loan and lease losses | 144,556 | 141,933 | 140,608 | 139,503 | 136,867 | 2 | % | 6 | % | |||||||||||||||||
Reserve for unfunded commitments | 4,130 | 4,129 | 3,963 | 3,932 | 3,816 | 0 | % | 8 | % | |||||||||||||||||
Total allowance for credit losses | $ | 148,686 | $ | 146,062 | $ | 144,571 | $ | 143,435 | $ | 140,683 | 2 | % | 6 | % | ||||||||||||
Net charge-offs to average loans and leases (annualized) | 0.22 | % | 0.26 | % | 0.25 | % | 0.20 | % | 0.22 | % | ||||||||||||||||
Recoveries to gross charge-offs | 27.80 | % | 22.01 | % | 24.94 | % | 29.20 | % | 27.70 | % | ||||||||||||||||
Allowance for loan and lease losses to loans and leases | 0.73 | % | 0.73 | % | 0.74 | % | 0.75 | % | 0.75 | % | ||||||||||||||||
Allowance for credit losses to loans and leases | 0.75 | % | 0.76 | % | 0.76 | % | 0.77 | % | 0.77 | % |
Umpqua Holdings Corporation | |||||||||||
Credit Quality – Allowance for Loan and Lease Losses | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended | % Change | ||||||||||
(Dollars in thousands) | Jun 30, 2018 | Jun 30, 2017 | Year over Year | ||||||||
Allowance for loan and lease losses: | |||||||||||
Balance beginning of period | $ | 140,608 | $ | 133,984 | |||||||
Provision for loan and lease losses | 26,975 | 22,329 | 21 | % | |||||||
Charge-offs | (30,627 | ) | (26,946 | ) | 14 | % | |||||
Recoveries | 7,600 | 7,500 | 1 | % | |||||||
Net charge-offs | (23,027 | ) | (19,446 | ) | 18 | % | |||||
Total allowance for loan and lease losses | 144,556 | 136,867 | 6 | % | |||||||
Reserve for unfunded commitments | 4,130 | 3,816 | 8 | % | |||||||
Total allowance for credit losses | $ | 148,686 | $ | 140,683 | 6 | % | |||||
Net charge-offs to average loans and leases (annualized) | 0.24 | % | 0.22 | % | |||||||
Recoveries to gross charge-offs | 24.81 | % | 27.83 | % |
Umpqua Holdings Corporation | |||||||||||||||||||||
Selected Ratios | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||
Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||
Average Rates: | |||||||||||||||||||||
Yield on loans and leases | 4.81 | % | 4.75 | % | 4.65 | % | 4.70 | % | 4.67 | % | 0.06 | 0.14 | |||||||||
Yield on loans held for sale | 4.86 | % | 4.21 | % | 3.99 | % | 3.89 | % | 3.26 | % | 0.65 | 1.60 | |||||||||
Yield on taxable investments | 2.37 | % | 2.31 | % | 2.17 | % | 2.00 | % | 2.07 | % | 0.06 | 0.30 | |||||||||
Yield on tax-exempt investments (1) | 3.64 | % | 3.68 | % | 4.49 | % | 4.59 | % | 4.64 | % | (0.04 | ) | (1.00 | ) | |||||||
Yield on interest bearing cash and temporary investments | 1.82 | % | 1.55 | % | 1.22 | % | 1.47 | % | 1.03 | % | 0.27 | 0.79 | |||||||||
Total yield on earning assets (1) | 4.45 | % | 4.39 | % | 4.26 | % | 4.30 | % | 4.26 | % | 0.06 | 0.19 | |||||||||
Cost of interest bearing deposits | 0.62 | % | 0.47 | % | 0.40 | % | 0.36 | % | 0.33 | % | 0.15 | 0.29 | |||||||||
Cost of securities sold under agreements | |||||||||||||||||||||
to repurchase and fed funds purchased | 0.22 | % | 0.08 | % | 0.06 | % | 0.10 | % | 0.32 | % | 0.14 | (0.10 | ) | ||||||||
Cost of term debt | 1.74 | % | 1.70 | % | 1.67 | % | 1.63 | % | 1.72 | % | 0.04 | 0.02 | |||||||||
Cost of junior subordinated debentures | 5.89 | % | 5.36 | % | 5.11 | % | 5.02 | % | 4.88 | % | 0.53 | 1.01 | |||||||||
Total cost of interest bearing liabilities | 0.80 | % | 0.65 | % | 0.58 | % | 0.55 | % | 0.52 | % | 0.15 | 0.28 | |||||||||
Net interest spread (1) | 3.65 | % | 3.74 | % | 3.68 | % | 3.75 | % | 3.74 | % | (0.09 | ) | (0.09 | ) | |||||||
Net interest margin (1) | 3.93 | % | 3.96 | % | 3.88 | % | 3.94 | % | 3.91 | % | (0.03 | ) | 0.02 | ||||||||
Performance Ratios: | |||||||||||||||||||||
Return on average assets | 1.04 | % | 1.23 | % | 1.27 | % | 0.96 | % | 0.92 | % | (0.19 | ) | 0.12 | ||||||||
Return on average tangible assets | 1.12 | % | 1.32 | % | 1.36 | % | 1.04 | % | 0.99 | % | (0.20 | ) | 0.13 | ||||||||
Return on average common equity | 6.74 | % | 7.84 | % | 8.12 | % | 6.10 | % | 5.76 | % | (1.10 | ) | 0.98 | ||||||||
Return on average tangible common equity | 12.27 | % | 14.30 | % | 14.90 | % | 11.23 | % | 10.67 | % | (2.03 | ) | 1.60 | ||||||||
Efficiency ratio – Consolidated | 65.31 | % | 61.56 | % | 65.99 | % | 63.43 | % | 64.71 | % | 3.75 | 0.60 | |||||||||
Efficiency ratio – Bank | 62.53 | % | 59.58 | % | 62.09 | % | 61.42 | % | 62.45 | % | 2.95 | 0.08 |
Umpqua Holdings Corporation | |||||||||
Selected Ratios | |||||||||
(Unaudited) | |||||||||
Six Months Ended | % Change | ||||||||
Jun 30, 2018 | Jun 30, 2017 | Year over Year | |||||||
Average Rates: | |||||||||
Yield on loans and leases | 4.78 | % | 4.66 | % | 0.12 | ||||
Yield on loans held for sale | 4.57 | % | 3.54 | % | 1.03 | ||||
Yield on taxable investments | 2.34 | % | 2.09 | % | 0.25 | ||||
Yield on tax-exempt investments (1) | 3.66 | % | 4.70 | % | (1.04 | ) | |||
Yield on interest bearing cash and temporary investments | 1.72 | % | 0.82 | % | 0.90 | ||||
Total yield on earning assets (1) | 4.43 | % | 4.23 | % | 0.20 | ||||
Cost of interest bearing deposits | 0.55 | % | 0.31 | % | 0.24 | ||||
Cost of securities sold under agreements | |||||||||
to repurchase and fed funds purchased | 0.15 | % | 0.19 | % | (0.04 | ) | |||
Cost of term debt | 1.72 | % | 1.70 | % | 0.02 | ||||
Cost of junior subordinated debentures | 5.62 | % | 4.79 | % | 0.83 | ||||
Total cost of interest bearing liabilities | 0.73 | % | 0.50 | % | 0.23 | ||||
Net interest spread (1) | 3.70 | % | 3.73 | % | (0.03 | ) | |||
Net interest margin (1) | 3.96 | % | 3.89 | % | 0.07 | ||||
Performance Ratios: | |||||||||
Return on average assets | 1.13 | % | 0.84 | % | 0.29 | ||||
Return on average tangible assets | 1.22 | % | 0.90 | % | 0.32 | ||||
Return on average common equity | 7.29 | % | 5.25 | % | 2.04 | ||||
Return on average tangible common equity | 13.28 | % | 9.76 | % | 3.52 | ||||
Efficiency ratio – Consolidated | 63.43 | % | 66.38 | % | (2.95 | ) | |||
Efficiency ratio – Bank | 61.06 | % | 64.05 | % | (2.99 | ) |
Umpqua Holdings Corporation Average Balances | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||||||
Temporary investments and interest bearing cash | $ | 458,133 | $ | 303,670 | $ | 509,187 | $ | 253,015 | $ | 125,886 | 51 | % | 264 | % | ||||||||||||
Investment securities, taxable | 2,723,406 | 2,793,449 | 2,804,530 | 2,867,292 | 3,008,079 | (3 | )% | (9 | )% | |||||||||||||||||
Investment securities, tax-exempt | 279,158 | 286,603 | 286,345 | 281,139 | 292,553 | (3 | )% | (5 | )% | |||||||||||||||||
Loans held for sale | 326,427 | 267,231 | 370,564 | 420,282 | 392,183 | 22 | % | (17 | )% | |||||||||||||||||
Loans and leases | 19,444,890 | 19,150,315 | 18,765,251 | 18,537,827 | 18,024,651 | 2 | % | 8 | % | |||||||||||||||||
Total interest earning assets | 23,232,014 | 22,801,268 | 22,735,877 | 22,359,555 | 21,843,352 | 2 | % | 6 | % | |||||||||||||||||
Goodwill and other intangible assets, net | 1,815,529 | 1,817,068 | 1,818,730 | 1,820,394 | 1,822,032 | 0 | % | 0 | % | |||||||||||||||||
Total assets | 26,127,935 | 25,686,471 | 25,661,566 | 25,311,994 | 24,792,869 | 2 | % | 5 | % | |||||||||||||||||
Non-interest bearing demand deposits | 6,645,689 | 6,450,364 | 6,611,493 | 6,354,591 | 5,951,670 | 3 | % | 12 | % | |||||||||||||||||
Interest bearing deposits | 13,745,089 | 13,492,965 | 13,281,502 | 13,155,462 | 13,037,064 | 2 | % | 5 | % | |||||||||||||||||
Total deposits | 20,390,778 | 19,943,329 | 19,892,995 | 19,510,053 | 18,988,734 | 2 | % | 7 | % | |||||||||||||||||
Interest bearing liabilities | 15,199,900 | 14,971,759 | 14,790,883 | 14,705,842 | 14,659,650 | 2 | % | 4 | % | |||||||||||||||||
Shareholders’ equity - common | 4,031,253 | 4,019,822 | 3,998,609 | 3,989,868 | 3,956,777 | 0 | % | 2 | % | |||||||||||||||||
Tangible common equity (1) | 2,215,724 | 2,202,754 | 2,179,879 | 2,166,474 | 2,134,745 | 1 | % | 4 | % |
Umpqua Holdings Corporation Average Balances | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended | % Change | ||||||||||
(Dollars in thousands) | Jun 30, 2018 | Jun 30, 2017 | Year over Year | ||||||||
Temporary investments and interest bearing cash | $ | 381,328 | $ | 463,245 | (18 | )% | |||||
Investment securities, taxable | 2,758,235 | 2,866,614 | (4 | )% | |||||||
Investment securities, tax-exempt | 282,860 | 289,515 | (2 | )% | |||||||
Loans held for sale | 296,992 | 371,989 | (20 | )% | |||||||
Loans and leases | 19,298,416 | 17,812,660 | 8 | % | |||||||
Total interest earning assets | 23,017,831 | 21,804,023 | 6 | % | |||||||
Goodwill and other intangible assets, net | 1,816,294 | 1,822,910 | 0 | % | |||||||
Total assets | 25,908,423 | 24,761,749 | 5 | % | |||||||
Non-interest bearing demand deposits | 6,548,566 | 5,917,984 | 11 | % | |||||||
Interest bearing deposits | 13,619,723 | 13,078,171 | 4 | % | |||||||
Total deposits | 20,168,289 | 18,996,155 | 6 | % | |||||||
Interest bearing liabilities | 15,086,460 | 14,660,598 | 3 | % | |||||||
Shareholders’ equity - common | 4,025,569 | 3,946,615 | 2 | % | |||||||
Tangible common equity (1) | 2,209,275 | 2,123,705 | 4 | % |
Umpqua Holdings Corporation Average Rates and Balances | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Quarter Ended | |||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | ||||||||||||||||||||||||||||||
Average Balance | Interest Income or Expense | Average Yields or Rates | Average Balance | Interest Income or Expense | Average Yields or Rates | Average Balance | Interest Income or Expense | Average Yields or Rates | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS: | ||||||||||||||||||||||||||||||||
Loans held for sale | $ | 326,427 | $ | 3,967 | 4.86 | % | $ | 267,231 | $ | 2,815 | 4.21 | % | $ | 392,183 | $ | 3,193 | 3.26 | % | ||||||||||||||
Loans and leases (1) | 19,444,890 | 233,376 | 4.81 | % | 19,150,315 | 224,923 | 4.75 | % | 18,024,651 | 209,805 | 4.67 | % | ||||||||||||||||||||
Taxable securities | 2,723,406 | 16,111 | 2.37 | % | 2,793,449 | 16,167 | 2.31 | % | 3,008,079 | 15,580 | 2.07 | % | ||||||||||||||||||||
Non-taxable securities (2) | 279,158 | 2,539 | 3.64 | % | 286,603 | 2,640 | 3.68 | % | 292,553 | 3,397 | 4.64 | % | ||||||||||||||||||||
Temporary investments and interest-bearing cash | 458,133 | 2,080 | 1.82 | % | 303,670 | 1,164 | 1.55 | % | 125,886 | 324 | 1.03 | % | ||||||||||||||||||||
Total interest-earning assets | 23,232,014 | $ | 258,073 | 4.45 | % | 22,801,268 | 247,709 | 4.39 | % | 21,843,352 | $ | 232,299 | 4.26 | % | ||||||||||||||||||
Allowance for loan and lease losses | (144,598 | ) | (142,409 | ) | (137,445 | ) | ||||||||||||||||||||||||||
Other assets | 3,040,519 | 3,027,612 | 3,086,962 | |||||||||||||||||||||||||||||
Total assets | $ | 26,127,935 | $ | 25,686,471 | $ | 24,792,869 | ||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES: | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 2,322,359 | $ | 1,565 | 0.27 | % | $ | 2,323,232 | $ | 1,210 | 0.21 | % | $ | 2,311,555 | $ | 798 | 0.14 | % | ||||||||||||||
Money market deposits | 6,332,372 | 5,896 | 0.37 | % | 6,908,067 | 5,713 | 0.34 | % | 6,682,937 | 2,975 | 0.18 | % | ||||||||||||||||||||
Savings deposits | 1,456,625 | 252 | 0.07 | % | 1,463,058 | 163 | 0.05 | % | 1,401,238 | 146 | 0.04 | % | ||||||||||||||||||||
Time deposits | 3,633,733 | 13,546 | 1.50 | % | 2,798,608 | 8,524 | 1.24 | % | 2,641,334 | 6,722 | 1.02 | % | ||||||||||||||||||||
Total interest-bearing deposits | 13,745,089 | 21,259 | 0.62 | % | 13,492,965 | 15,610 | 0.47 | % | 13,037,064 | 10,641 | 0.33 | % | ||||||||||||||||||||
Repurchase agreements and federal funds purchased | 285,338 | 155 | 0.22 | % | 303,059 | 63 | 0.08 | % | 405,892 | 321 | 0.32 | % | ||||||||||||||||||||
Term debt | 801,768 | 3,478 | 1.74 | % | 802,297 | 3,361 | 1.70 | % | 852,254 | 3,662 | 1.72 | % | ||||||||||||||||||||
Junior subordinated debentures | 367,705 | 5,400 | 5.89 | % | 373,438 | 4,932 | 5.36 | % | 364,440 | 4,437 | 4.88 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 15,199,900 | $ | 30,292 | 0.80 | % | 14,971,759 | $ | 23,966 | 0.65 | % | 14,659,650 | $ | 19,061 | 0.52 | % | |||||||||||||||||
Non-interest-bearing deposits | 6,645,689 | 6,450,364 | 5,951,670 | |||||||||||||||||||||||||||||
Other liabilities | 251,093 | 244,526 | 224,772 | |||||||||||||||||||||||||||||
Total liabilities | 22,096,682 | 21,666,649 | 20,836,092 | |||||||||||||||||||||||||||||
Common equity | 4,031,253 | 4,019,822 | 3,956,777 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 26,127,935 | $ | 25,686,471 | $ | 24,792,869 | ||||||||||||||||||||||||||
NET INTEREST INCOME | $ | 227,781 | $ | 223,743 | $ | 213,238 | ||||||||||||||||||||||||||
NET INTEREST SPREAD | 3.65 | % | 3.74 | % | 3.74 | % | ||||||||||||||||||||||||||
AVERAGE YIELD ON EARNING ASSETS (1), (2) | 4.45 | % | 4.39 | % | 4.26 | % | ||||||||||||||||||||||||||
INTEREST EXPENSE TO EARNING ASSETS | 0.52 | % | 0.43 | % | 0.35 | % | ||||||||||||||||||||||||||
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) | 3.93 | % | 3.96 | % | 3.91 | % |
(1) | Non-accrual loans and leases are included in the average balance. |
(2) | Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate for 2018 and a 35% tax rate for 2017. The amount of such adjustment was an addition to recorded income of approximately $482,000 for the three months ended June 30, 2018 as compared to $512,000 for March 31, 2018 and $1.2 million for June 30, 2017. |
Umpqua Holdings Corporation Average Rates and Balances | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
(dollars in thousands) | Six Months Ended | ||||||||||||||||||||
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||
Average Balance | Interest Income or Expense | Average Yields or Rates | Average Balance | Interest Income or Expense | Average Yields or Rates | ||||||||||||||||
INTEREST-EARNING ASSETS: | |||||||||||||||||||||
Loans held for sale | $ | 296,992 | $ | 6,782 | 4.57 | % | $ | 371,989 | $ | 6,588 | 3.54 | % | |||||||||
Loans and leases (1) | 19,298,416 | 458,299 | 4.78 | % | 17,812,660 | 412,406 | 4.66 | % | |||||||||||||
Taxable securities | 2,758,235 | 32,278 | 2.34 | % | 2,866,614 | 29,899 | 2.09 | % | |||||||||||||
Non-taxable securities (2) | 282,860 | 5,179 | 3.66 | % | 289,515 | 6,806 | 4.70 | % | |||||||||||||
Temporary investments and interest-bearing cash | 381,328 | 3,244 | 1.72 | % | 463,245 | 1,881 | 0.82 | % | |||||||||||||
Total interest-earning assets | 23,017,831 | $ | 505,782 | 4.43 | % | 21,804,023 | $ | 457,580 | 4.23 | % | |||||||||||
Allowance for loan and lease losses | (143,509 | ) | (136,834 | ) | |||||||||||||||||
Other assets | 3,034,101 | 3,094,560 | |||||||||||||||||||
Total assets | $ | 25,908,423 | $ | 24,761,749 | |||||||||||||||||
INTEREST-BEARING LIABILITIES: | |||||||||||||||||||||
Interest-bearing demand deposits | $ | 2,322,793 | $ | 2,775 | 0.24 | % | $ | 2,288,870 | $ | 1,443 | 0.13 | % | |||||||||
Money market deposits | 6,618,629 | 11,609 | 0.35 | % | 6,776,705 | 5,644 | 0.17 | % | |||||||||||||
Savings deposits | 1,459,824 | 414 | 0.06 | % | 1,383,124 | 274 | 0.04 | % | |||||||||||||
Time deposits | 3,218,477 | 22,071 | 1.38 | % | 2,629,472 | 12,928 | 0.99 | % | |||||||||||||
Total interest-bearing deposits | 13,619,723 | 36,869 | 0.55 | % | 13,078,171 | 20,289 | 0.31 | % | |||||||||||||
Repurchase agreements and federal funds purchased | 294,150 | 218 | 0.15 | % | 366,498 | 351 | 0.19 | % | |||||||||||||
Term debt | 802,031 | 6,839 | 1.72 | % | 852,302 | 7,172 | 1.70 | % | |||||||||||||
Junior subordinated debentures | 370,556 | 10,332 | 5.62 | % | 363,627 | 8,638 | 4.79 | % | |||||||||||||
Total interest-bearing liabilities | 15,086,460 | $ | 54,258 | 0.73 | % | 14,660,598 | $ | 36,450 | 0.50 | % | |||||||||||
Non-interest-bearing deposits | 6,548,566 | 5,917,984 | |||||||||||||||||||
Other liabilities | 247,828 | 236,552 | |||||||||||||||||||
Total liabilities | 21,882,854 | 20,815,134 | |||||||||||||||||||
Common equity | 4,025,569 | 3,946,615 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 25,908,423 | $ | 24,761,749 | |||||||||||||||||
NET INTEREST INCOME | $ | 451,524 | $ | 421,130 | |||||||||||||||||
NET INTEREST SPREAD | 3.70 | % | 3.73 | % | |||||||||||||||||
AVERAGE YIELD ON EARNING ASSETS (1), (2) | 4.43 | % | 4.23 | % | |||||||||||||||||
INTEREST EXPENSE TO EARNING ASSETS | 0.47 | % | 0.34 | % | |||||||||||||||||
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) | 3.96 | % | 3.89 | % |
(1) | Non-accrual loans and leases are included in the average balance. |
(2) | Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate for 2018 and a 35% tax rate for 2017. The amount of such adjustment was an addition to recorded income of approximately $1.0 million for the six months ended June 30, 2018 as compared to $2.3 million for the same period in 2017. |
Umpqua Holdings Corporation Residential Mortgage Banking Activity | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Seq. Quarter | Year over Year | |||||||||||||||||||
Residential mortgage servicing rights: | ||||||||||||||||||||||||||
Residential mortgage loans serviced for others | $ | 15,508,182 | $ | 15,442,915 | $ | 15,336,597 | $ | 15,007,942 | $ | 14,797,242 | 0 | % | 5 | % | ||||||||||||
MSR asset, at fair value | 166,217 | 164,760 | 153,151 | 141,225 | 141,832 | 1 | % | 17 | % | |||||||||||||||||
MSR as % of serviced portfolio | 1.07 | % | 1.07 | % | 1.00 | % | 0.94 | % | 0.96 | % | 0 | % | 11 | % | ||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 28,159 | $ | 22,837 | $ | 29,864 | $ | 32,784 | $ | 32,385 | 23 | % | (13 | )% | ||||||||||||
Servicing | 10,407 | 10,522 | 10,287 | 9,879 | 9,839 | (1 | )% | 6 | % | |||||||||||||||||
Change in fair value of MSR asset | (5,403 | ) | 5,079 | 1,967 | (9,233 | ) | (8,330 | ) | (206 | )% | (35 | )% | ||||||||||||||
Total | $ | 33,163 | $ | 38,438 | $ | 42,118 | $ | 33,430 | $ | 33,894 | (14 | )% | (2 | )% | ||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - portfolio | $ | 294,581 | $ | 237,783 | $ | 265,718 | $ | 336,362 | $ | 312,022 | 24 | % | (6 | )% | ||||||||||||
Closed loan volume - for-sale | 839,489 | 687,226 | 850,453 | 891,063 | 918,200 | 22 | % | (9 | )% | |||||||||||||||||
Closed loan volume - total | $ | 1,134,070 | $ | 925,009 | $ | 1,116,171 | $ | 1,227,425 | $ | 1,230,222 | 23 | % | (8 | )% | ||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on for-sale volume | 3.35 | % | 3.32 | % | 3.51 | % | 3.68 | % | 3.53 | % | 0.03 | (0.18 | ) | |||||||||||||
Six Months Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2018 | Jun 30, 2017 | Year over Year | |||||||||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 50,996 | $ | 57,032 | (11 | )% | ||||||||||||||||||||
Servicing | 20,929 | 19,697 | 6 | % | ||||||||||||||||||||||
Change in fair value of MSR asset | (324 | ) | (16,001 | ) | (98 | )% | ||||||||||||||||||||
Total | $ | 71,601 | $ | 60,728 | 18 | % | ||||||||||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - portfolio | $ | 532,364 | $ | 557,356 | (4 | )% | ||||||||||||||||||||
Closed loan volume - for-sale | 1,526,715 | 1,672,915 | (9 | )% | ||||||||||||||||||||||
Closed loan volume - total | $ | 2,059,079 | $ | 2,230,271 | (8 | )% | ||||||||||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on for-sale volume | 3.34 | % | 3.41 | % | (0.07 | ) |