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

9 Months Ended

Sep. 30, 2018

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 nine months ended September 30, 2018 and 2017:



(in thousands)	Three Months Ended September 30, 2018
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	47,285		$	65,765		$	20,275		$	11,231		$	144,556
Charge-offs	(415		)	(13,926		)	(95		)	(1,460		)	(15,896		)
Recoveries	413			2,473			237			532			3,655
(Recapture) provision	(942		)	11,133			609			911			11,711
Balance, end of period	$	46,341		$	65,445		$	21,026		$	11,214		$	144,026

(in thousands)	Three Months Ended September 30, 2017
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	47,414		$	60,057		$	18,051		$	11,345		$	136,867
Charge-offs	(503		)	(10,504		)	(128		)	(2,087		)	(13,222		)
Recoveries	676			2,121			287			777			3,861
(Recapture) provision	(696		)	9,900			755			2,038			11,997
Balance, end of period	$	46,891		$	61,574		$	18,965		$	12,073		$	139,503



(in thousands)	Nine Months Ended September 30, 2018
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	45,765		$	63,305		$	19,360		$	12,178		$	140,608
Charge-offs	(1,088		)	(40,270		)	(801		)	(4,364		)	(46,523		)
Recoveries	919			8,097			538			1,701			11,255
Provision	745			34,313			1,929			1,699			38,686
Balance, end of period	$	46,341		$	65,445		$	21,026		$	11,214		$	144,026

(in thousands)	Nine Months Ended September 30, 2017
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	47,795		$	58,840		$	17,946		$	9,403		$	133,984
Charge-offs	(1,651		)	(31,304		)	(745		)	(6,468		)	(40,168		)
Recoveries	2,533			5,662			597			2,569			11,361
(Recapture) provision	(1,786		)	28,376			1,167			6,569			34,326
Balance, end of period	$	46,891		$	61,574		$	18,965		$	12,073		$	139,503

The following tables present the allowance and recorded investment in loans and leases by portfolio segment and balances individually or collectively evaluated for impairment as of September 30, 2018 and 2017:



(in thousands)	September 30, 2018
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	44,353	$	65,135	$	20,671	$	11,173	$	141,332
Individually evaluated for impairment	215		5		—		—		220
Loans acquired with deteriorated credit quality	1,773		305		355		41		2,474
Total	$	46,341	$	65,445	$	21,026	$	11,214	$	144,026
Loans and leases:
Collectively evaluated for impairment	$	9,934,169	$	4,543,599	$	4,583,986	$	603,752	$	19,665,506
Individually evaluated for impairment	25,410		18,133		—		—		43,543
Loans acquired with deteriorated credit quality	113,363		3,280		27,934		407		144,984
Total	$	10,072,942	$	4,565,012	$	4,611,920	$	604,159	$	19,854,033



(in thousands)	September 30, 2017
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	43,792	$	60,809	$	18,383	$	12,045	$	135,029
Individually evaluated for impairment	749		416		—		—		1,165
Loans acquired with deteriorated credit quality	2,350		349		582		28		3,309
Total	$	46,891	$	61,574	$	18,965	$	12,073	$	139,503
Loans and leases:
Collectively evaluated for impairment	$	9,392,651	$	4,055,144	$	4,119,979	$	767,162	$	18,334,936
Individually evaluated for impairment	40,773		32,125		—		—		72,898
Loans acquired with deteriorated credit quality	163,546		4,716		37,874		468		206,604
Total	$	9,596,970	$	4,091,985	$	4,157,853	$	767,630	$	18,614,438

Schedule of Reserve for Unfunded Commitments

The following tables present a summary of activity in the RUC and unfunded commitments for the three and nine months ended September 30, 2018 and 2017:



(in thousands)	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Balance, beginning of period	$	4,130	$	3,816	$	3,963	$	3,611
Net charge to other expense	164		116		331		321
Balance, end of period	$	4,294	$	3,932	$	4,294	$	3,932



(in thousands)	Total
Unfunded loan and lease commitments:
September 30, 2018	$	5,244,832
September 30, 2017	$	4,839,882

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 September 30, 2018 and December 31, 2017:



(in thousands)	September 30, 2018
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90+ Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	—	$	—	$	—	$	—	$	11,379	$	3,515,978	$	3,527,357
Owner occupied term, net	354		2,776		50		3,180		9,011		2,462,654		2,474,845
Multifamily, net	—		—		—		—		4,294		3,221,244		3,225,538
Construction & development, net	—		—		—		—		—		646,684		646,684
Residential development, net	—		—		—		—		—		198,518		198,518
Commercial
Term, net	21		85		—		106		10,860		2,138,410		2,149,376
Lines of credit & other, net	2,916		510		57		3,483		3,067		1,126,958		1,133,508
Leases & equipment finance, net	7,037		7,967		3,086		18,090		15,448		1,248,590		1,282,128
Residential
Mortgage, net (2)	—		5,840		36,203		42,043		—		3,426,526		3,468,569
Home equity loans & lines, net	1,436		999		1,691		4,126		—		1,139,225		1,143,351
Consumer & other, net	2,902		982		746		4,630		—		599,529		604,159
Total, net of deferred fees and costs	$	14,666	$	19,159	$	41,833	$	75,658	$	54,059	$	19,724,316	$	19,854,033

(1) Other includes purchased credit impaired loans of $145.0 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 $8.0 million at September 30, 2018.



(in thousands)	December 31, 2017
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90+ Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	207	$	2,097	$	—	$	2,304	$	4,503	$	3,476,390	$	3,483,197
Owner occupied term, net	4,997		2,010		71		7,078		13,835		2,455,741		2,476,654
Multifamily, net	—		—		—		—		355		3,060,261		3,060,616
Construction & development, net	—		—		—		—		—		540,696		540,696
Residential development, net	—		—		—		—		—		165,941		165,941
Commercial
Term, net	597		1,064		—		1,661		14,686		1,928,578		1,944,925
Lines of credit & other, net	1,263		—		401		1,664		6,402		1,158,209		1,166,275
Leases & equipment finance, net	8,494		10,133		2,857		21,484		11,574		1,134,445		1,167,503
Residential
Mortgage, net⁽²⁾	—		6,709		36,980		43,689		—		3,139,199		3,182,888
Home equity loans & lines, net	2,011		283		2,550		4,844		—		1,093,033		1,097,877
Consumer & other, net	3,117		871		532		4,520		—		728,100		732,620
Total, net of deferred fees and costs	$	20,686	$	23,167	$	43,391	$	87,244	$	51,355	$	18,880,593	$	19,019,192

(1) Other includes purchased credit impaired loans of $189.1 million.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $12.4 million at December 31, 2017.

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 nine months ended September 30, 2018 and 2017:



(in thousands)	Three Months Ended				Three Months Ended
	September 30, 2018				September 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate
Non-owner occupied term, net	$	13,475	$	33	$	18,692	$	149
Owner occupied term, net	9,551		10		10,144		14
Multifamily, net	4,072		—		3,890		30
Construction & development, net	—		—		1,091		—
Residential development, net	—		—		7,096		13
Commercial
Term, net	14,244		51		19,269		88
Lines of credit & other, net	2,608		—		7,560		5
Leases & equipment finance, net	828		—		137		—
Total, net of deferred fees and costs	$	44,778	$	94	$	67,879	$	299



(in thousands)	Nine Months Ended				Nine Months Ended
	September 30, 2018				September 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate
Non-owner occupied term, net	$	14,047	$	238	$	17,213	$	447
Owner occupied term, net	10,506		30		9,548		141
Multifamily, net	3,970		60		3,914		91
Construction & development, net	—		—		1,201		22
Residential development, net	—		—		7,270		163
Commercial
Term, net	17,728		196		16,048		242
Lines of credit & other, net	3,667		—		6,263		55
Leases & equipment finance, net	450		—		185		—
Total, net of deferred fees and costs	$	50,368	$	524	$	61,642	$	1,161

The following tables summarize our impaired loans by loan class as of September 30, 2018 and December 31, 2017:



(in thousands)	September 30, 2018
			Recorded Investment
	Unpaid Principal Balance		Without Allowance		With Allowance		Related Allowance
Commercial real estate
Non-owner occupied term, net	$	13,660	$	9,941	$	3,733	$	124
Owner occupied term, net	8,272		6,545		897		91
Multifamily, net	4,493		4,294		—		—
Commercial
Term, net	21,544		10,221		4,064		5
Lines of credit & other, net	7,622		3,067		—		—
Leases & equipment finance, net	781		781		—		—
Total, net of deferred fees and costs	$	56,372	$	34,849	$	8,694	$	220



(in thousands)	December 31, 2017
			Recorded Investment
	Unpaid Principal Balance		Without Allowance		With Allowance		Related Allowance
Commercial real estate
Non-owner occupied term, net	$	15,930	$	2,543	$	13,310	$	314
Owner occupied term, net	12,775		11,269		940		94
Multifamily, net	3,994		355		3,519		123
Commercial
Term, net	28,117		19,084		2,510		4
Lines of credit & other, net	8,018		6,383		—		—
Total, net of deferred fees and costs	$	68,834	$	39,634	$	20,279	$	535

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 September 30, 2018 and December 31, 2017:



(in thousands)	September 30, 2018
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,459,769	$	27,270	$	26,306	$	122	$	216	$	13,674	$	3,527,357
Owner occupied term, net	2,414,053		25,237		27,934		49		130		7,442		2,474,845
Multifamily, net	3,205,253		11,427		4,564		—		—		4,294		3,225,538
Construction & development, net	644,735		—		1,949		—		—		—		646,684
Residential development, net	198,518		—		—		—		—		—		198,518
Commercial
Term, net	2,107,781		19,513		7,724		4		69		14,285		2,149,376
Lines of credit & other, net	1,051,849		56,191		22,344		2		55		3,067		1,133,508
Leases & equipment finance, net	1,248,631		7,037		7,967		15,678		2,034		781		1,282,128
Residential
Mortgage, net (2)	3,424,259		6,497		36,726		—		1,087		—		3,468,569
Home equity loans & lines, net	1,139,111		2,486		1,258		—		496		—		1,143,351
Consumer & other, net	599,492		3,882		758		—		27		—		604,159
Total, net of deferred fees and costs	$	19,493,451	$	159,540	$	137,530	$	15,855	$	4,114	$	43,543	$	19,854,033

(1) The percentage of impaired loans classified as pass/watch and substandard was 3.1% and 96.9%, respectively, as of September 30, 2018.

(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 $8.0 million at September 30, 2018, which is included in the substandard category.



(in thousands)	December 31, 2017
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,388,421	$	45,189	$	33,026	$	630	$	78	$	15,853	$	3,483,197
Owner occupied term, net	2,398,215		30,343		34,743		438		706		12,209		2,476,654
Multifamily, net	3,037,320		13,783		5,639		—		—		3,874		3,060,616
Construction & development, net	538,515		—		2,181		—		—		—		540,696
Residential development, net	165,502		—		439		—		—		—		165,941
Commercial
Term, net	1,900,062		12,735		10,372		82		80		21,594		1,944,925
Lines of credit & other, net	1,122,360		6,539		30,941		52		—		6,383		1,166,275
Leases & equipment finance, net	1,134,446		8,494		10,133		12,868		1,562		—		1,167,503
Residential
Mortgage, net (2)	3,136,071		7,505		35,918		—		3,394		—		3,182,888
Home equity loans & lines, net	1,092,496		2,564		2,286		—		531		—		1,097,877
Consumer & other, net	728,006		3,998		568		—		48		—		732,620
Total, net of deferred fees and costs	$	18,641,414	$	131,150	$	166,246	$	14,070	$	6,399	$	59,913	$	19,019,192

(1) The percentage of impaired loans classified as pass/watch and substandard was 1.7%, and 98.3%, respectively, as of December 31, 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 $12.4 million at December 31, 2017, which is included in the substandard category.

Schedule Of Troubled Debt Restructurings

The following tables present newly restructured loans that occurred during the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017:



(in thousands)	Three Months Ended September 30, 2017
	Rate Modifications		Term Modifications		Interest Only Modifications		Payment Modifications		Combination Modifications		Total Modifications
Commercial real estate, net	$	—	$	—	$	—	$	—	$	5,086	$	5,086
Commercial, net	—		—		—		—		9,053		9,053
Residential, net	—		187		—		—		—		187
Total, net of deferred fees and costs	$	—	$	187	$	—	$	—	$	14,139	$	14,326



(in thousands)	Nine Months Ended September 30, 2018
	Rate Modifications		Term Modifications		Interest Only Modifications		Payment Modifications		Combination Modifications		Total Modifications
Residential, net	$	—	$	—	$	—	$	—	$	106	$	106
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	106	$	106

(in thousands)	Nine Months Ended September 30, 2017
	Rate Modifications		Term Modifications		Interest Only Modifications		Payment Modifications		Combination Modifications		Total Modifications
Commercial real estate, net	$	—	$	—	$	—	$	—	$	5,086	$	5,086
Commercial, net	—		—		—		—		21,846		21,846
Residential, net	—		187		—		—		1,134		1,321
Total, net of deferred fees and costs	$	—	$	187	$	—	$	—	$	28,066	$	28,253

The following tables present troubled debt restructurings by accrual versus non-accrual status and by loan class as of September 30, 2018 and December 31, 2017:



(in thousands)	September 30, 2018
	Accrual Status		Non-Accrual Status		Total Modifications
Commercial real estate, net	$	4,555	$	10,990	$	15,545
Commercial, net	3,981		9,496		13,477
Residential, net	5,995		—		5,995
Total, net of deferred fees and costs	$	14,531	$	20,486	$	35,017



(in thousands)	December 31, 2017
	Accrual Status		Non-Accrual Status		Total Modifications
Commercial real estate, net	$	17,694	$	5,088	$	22,782
Commercial, net	7,787		16,978		24,765
Residential, net	6,687		—		6,687
Total, net of deferred fees and costs	$	32,168	$	22,066	$	54,234