Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2018 and December 31, 2017, whether or not recognized or recorded at fair value in the Condensed Consolidated Balance Sheets:



(in thousands)		September 30, 2018				December 31, 2017
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
FINANCIAL ASSETS:
Cash and cash equivalents	1	$	879,259	$	879,259	$	634,280	$	634,280
Equity and other investment securities	1,2	62,454		62,454		12,255		12,255
Investment securities available for sale	1,2	2,864,394		2,864,394		3,065,769		3,065,769
Investment securities held to maturity	3	3,672		4,728		3,803		4,906
Loans held for sale	2	289,537		289,537		259,518		259,518
Loans and leases, net (1)	3	19,710,007		19,561,695		18,878,584		18,875,046
Restricted equity securities	1	40,269		40,269		43,508		43,508
Residential mortgage servicing rights	3	175,038		175,038		153,151		153,151
Bank owned life insurance assets	1	311,922		311,922		306,864		306,864
Derivatives	2,3	18,718		18,718		32,256		32,256
Visa Class B common stock	3	—		113,020		—		86,380
FINANCIAL LIABILITIES:
Deposits	1,2	$	20,892,774	$	20,861,685	$	19,948,300	$	19,930,568
Securities sold under agreements to repurchase	2	286,975		286,975		294,299		294,299
Term debt	2	751,764		733,041		802,357		790,532
Junior subordinated debentures, at fair value	3	282,846		282,846		277,155		277,155
Junior subordinated debentures, at amortized cost	3	88,781		71,734		100,609		81,944
Derivatives	2	39,893		39,893		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 September 30, 2018 and December 31, 2017:



(in thousands)	September 30, 2018
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Equity and other investment securities
Investments in mutual funds and other securities	$	50,065	$	50,065	$	—	$	—
Equity securities held in rabbi trusts	12,241		12,241		—		—
Other investments securities (1)	148		—		148		—
Investment securities available for sale
U.S. Treasury and agencies	39,469		—		39,469		—
Obligations of states and political subdivisions	294,664		—		294,664		—
Residential mortgage-backed securities and collateralized mortgage obligations	2,530,261		—		2,530,261		—
Loans held for sale, at fair value	289,537		—		289,537		—
Residential mortgage servicing rights, at fair value	175,038		—		—		175,038
Derivatives
Interest rate lock commitments	5,159		—		—		5,159
Interest rate forward sales commitments	1,950		—		1,950		—
Interest rate swaps	10,890		—		10,890		—
Foreign currency derivative	719		—		719		—
Total assets measured at fair value	$	3,410,141	$	62,306	$	3,167,638	$	180,197
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	282,846	$	—	$	—	$	282,846
Derivatives
Interest rate forward sales commitments	77		—		77		—
Interest rate swaps	39,303		—		39,303		—
Foreign currency derivative	513		—		513		—
Total liabilities measured at fair value	$	322,739	$	—	$	39,893	$	282,846

(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 September 30, 2018:



Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average
Residential mortgage servicing rights	Discounted cash flow
		Constant Prepayment Rate	12.19%
		Discount Rate	9.70%
Interest rate lock commitment	Internal Pricing Model
		Pull-through rate	90.02%
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 and nine months ended September 30, 2018 and 2017:



(in thousands)
Three Months Ended September 30,	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	$	166,217	$	199		$	—	$	8,622	$	—		$	175,038	$	3,747
Interest rate lock commitment, net	6,782		(284		)	—		4,679		(6,018		)	5,159		5,159
Junior subordinated debentures, at fair value	280,669		4,486			2,409		—		(4,718		)	282,846		6,895

2017
Residential mortgage servicing rights	$	141,832	$	(9,233	)	$	—	$	8,626	$	—		$	141,225	$	(4,730	)
Interest rate lock commitment, net	4,746		884			—		10,028		(10,877		)	4,781		4,781
Junior subordinated debentures, at fair value	265,423		5,043			—		—		(3,591		)	266,875		5,043



(in thousands)
Nine Months Ended September 30,	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	$	(125	)	$	—	$	22,012	$	—		$	175,038	$	10,410
Interest rate lock commitment, net	4,752		(1,288		)	—		19,211		(17,516		)	5,159		5,159
Junior subordinated debentures, at fair value	277,155		12,544			5,605		—		(12,458		)	282,846		18,149

2017
Residential mortgage servicing rights	$	142,973	$	(25,234	)	$	—	$	23,486	$	—		$	141,225	$	(12,954	)
Interest rate lock commitment, net	4,076		2,261			—		31,992		(33,548		)	4,781		4,781
Junior subordinated debentures, at fair value	262,209		14,595			—		—		(9,929		)	266,875		14,595

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)	September 30, 2018
	Total		Level 1		Level 2		Level 3
Loans and leases	$	70,741	$	—	$	—	$	70,741
	$	70,741	$	—	$	—	$	70,741



(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 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
Loans and leases	$	14,436	$	11,138	$	42,158	$	34,294
Other real estate owned	—		39		66		146
Total loss from nonrecurring measurements	$	14,436	$	11,177	$	42,224	$	34,440

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 September 30, 2018 and December 31, 2017:



(in thousands)	September 30, 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	$	289,537	$	281,843	$	7,694	$	259,518	$	250,721	$	8,797