EX-99.1 2 umpq-20190331ex991earnings.htm PRESS RELEASE ANNOUNCING FIRST QUARTER 2019 FINANCIAL RESULTS Exhibit

EXHIBIT 99.1 
header.jpg  


Contacts:
Ron Farnsworth
Drew Anderson
EVP/Chief Financial Officer
SVP/Investor Relations Director
Umpqua Holdings Corporation
Umpqua Holdings Corporation
503-727-4108
503-727-4192
ronfarnsworth@umpquabank.com
drewanderson@umpquabank.com
 
UMPQUA REPORTS FIRST QUARTER 2019 RESULTS

First quarter 2019 net income of $74.0 million, or $0.34 per common share
Non-interest expense decreased 8% from first quarter 2018
Umpqua Next Gen initiatives creating positive operating leverage as shown in reduction of the efficiency ratio
Exploring ways to reduce future income statement fair value volatility of the MSR asset

PORTLAND, Ore. – April 17, 2019 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net income of $74.0 million for the first quarter of 2019, compared to $80.3 million for the fourth quarter of 2018 and $79.0 million for the first quarter of 2018. Earnings per diluted common share were $0.34 for the first quarter of 2019, compared to $0.36 for the fourth quarter of 2018 and $0.36 for the first quarter of 2018.

“Umpqua's financial performance in the first quarter illustrates how our Next Gen strategy is driving enhanced profitability and creating long-term shareholder value.” said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. “Although higher than usual payoffs in our commercial real estate portfolio impacted sequential quarter loan growth, it was otherwise an effective quarter of loan production across all lines of business. And the Company's operational excellence initiative led to total non-interest expense of $171.6 million, which represents a $14.5 million, or 8%, decrease when compared to results from the first quarter of 2018. In addition, we continue to be focused on generating consistent earnings, both by generating increased fee income and by exploring how to reduce future income statement volatility of the MSR asset.”

Notable items that impacted the first quarter 2019 financial results included:

•
$14.0 million loss on fair value change of the MSR asset, compared to a $13.1 million loss in the prior quarter and a $5.1 million gain in the same period of the prior year.
•
$2.5 million loss related to the fair value of the debt capital market swap derivatives, compared to a loss of $3.0 million in the prior quarter and a gain of $1.1 million in the same period of the prior year.
•
$1.9 million in restructuring charges related to operational excellence initiatives, all in professional fees. This compares to $4.0 million in the prior quarter and $2.7 million in the same period of the prior year.
•
$1.4 million of exit and disposal costs, compared to $0.8 million in the prior quarter and $2.5 million in the same period of the prior year.


Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 2


First Quarter 2019 Highlights (compared to prior quarter):

•
Net interest income decreased by $9.7 million on a quarter to quarter basis primarily driven by bond premium amortization as compared to the bond premium recapture recorded in the prior quarter.
•
Provision for loan and lease losses decreased by $3.5 million, as net charge-offs decreased by five basis points to 0.27% of average loans and leases (annualized);
•
Non-interest income decreased by $11.1 million, driven primary by the nonrecurring $5.8 million gain on sale of Pivotus assets in the fourth quarter of 2018 and lower residential mortgage banking revenue in the current quarter;
•
Non-interest expense decreased by $6.9 million, driven primarily by operational excellence initiatives, lower restructuring charges (see notable items above), lower mortgage banking-related expense, lower group insurance charges, and lower loss on OREO, partially offset by a seasonal increase in payroll taxes.
•
Non-performing assets to total assets improved to 0.32%;
•
Estimated total risk-based capital ratio of 13.5% and estimated Tier 1 common to risk weighted assets ratio of 10.7%;
•
Declared a quarterly cash dividend of $0.21 per common share.

Balance Sheet
Total consolidated assets were $27.4 billion as of March 31, 2019, compared to $26.9 billion as of December 31, 2018 and $25.8 billion as of March 31, 2018. Including secured off-balance sheet lines of credit, total available liquidity was $10.9 billion as of March 31, 2019, representing 40% of total assets and 51% of total deposits.
 
Gross loans and leases were $20.4 billion as of March 31, 2019, a decrease of $16.7 million relative to December 31, 2018. The timing of commercial and corporate loan closings in the prior quarter as well as an increase in payoffs of our commercial real estate portfolio offset new loan production.
 
Total deposits were $21.2 billion as of March 31, 2019, an increase of $106.4 million from $21.1 billion as of December 31, 2018. This increase was attributable to higher time deposits partially offset with the seasonal run-off of public money market deposits.
 
Net Interest Income
Net interest income was $237.7 million for the first quarter of 2019, down $9.7 million from the prior quarter driven primarily by the amortization of bond purchase premium in the quarter as compared to the recapture in the prior quarter.

The Company's net interest margin was 4.03% for the first quarter of 2019, down 12 basis points from 4.15% for the fourth quarter of 2018. This decrease was primarily attributable to a quarter over quarter change in bond purchase premium amortization/recapture.

Credit Quality
The allowance for loan and lease losses was $144.9 million, or 0.71% of loans and leases, as of March 31, 2019, which was unchanged from $144.9 million, or 0.71% of loans and leases, as of December 31, 2018. The provision for loan and lease losses was $13.7 million for the first quarter of 2019, a decrease of $3.5 million from the prior quarter level, driven by the reduction of net charge-offs in the quarter. Net charge-offs decreased by five basis points to 0.27% of average loans and leases (annualized). As of March 31, 2019, non-performing assets were 0.32% of total assets, compared to 0.36% as of December 31, 2018 and 0.33% as of March 31, 2018.

Non-interest Income
Non-interest income was $45.7 million for the first quarter of 2019, down $11.1 million from the prior quarter, reflecting the nonrecurring $5.8 million gain on sale of Pivotus assets in the fourth quarter of 2018, and lower net revenue from the origination and sale of residential mortgages.


Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 3


Net revenue from the origination and sale of residential mortgages was $14.4 million for the first quarter of 2019, down $2.3 million from the prior quarter. This decrease reflects a 17% sequential quarter decrease in for-sale mortgage origination volume, partially offset by a 12 basis point increase in the home lending gain on sale margin to 2.95% for the first quarter of 2019. The increase in the home lending gain on sale margin was primarily related to an increase in the mortgage rate lock pipeline. Of the current quarter's mortgage production, 71% related to purchase activity, compared to 80% for the prior quarter and 68% for the same period of the prior year.

Non-interest Expense
Non-interest expense was $171.6 million for the first quarter of 2019, down $6.9 million from the prior quarter level. This decrease was driven primarily by the Company's operational excellence initiatives, lower restructuring charges (see notable items above), lower mortgage banking-related expense, lower group insurance charges, and lower loss on OREO, partially offset by a seasonal increase in payroll taxes.

Capital
As of March 31, 2019, the Company's tangible book value per common share1 was $10.44, compared to $10.19 in the prior quarter and $9.77 in the same period of the prior year. During the first quarter of 2019, the Company declared a dividend of $0.21 per common share.

The Company's estimated total risk-based capital ratio was 13.5% and its estimated Tier 1 common to risk weighted
assets ratio was 10.7% as of March 31, 2019. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of March 31, 2019 are estimates, pending completion and filing of the Company's regulatory reports.

Presentation of Prior Period Financials
Certain prior period amounts in the financial statements presented in this earnings release have been re-stated from prior earnings releases, due to prior period adjustments as disclosed in the notes to the financial statements for the December 31, 2018 10-K. Additional explanation will be included in Note 1 to the financial statements for the quarter ended March 31, 2019 as part of the Form 10-Q.



1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided
under the heading Non-GAAP Financial Measures below.
Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 4


Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs).  The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.
 
The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
 
(In thousands, except per share data)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
Total shareholders' equity
 
$
4,112,326

 
$
4,056,442

 
$
4,003,893

 
$
3,981,087

 
$
3,969,766

Subtract:
 
 

 
 

 
 
 
 
 
 

Goodwill
 
1,787,651

 
1,787,651

 
1,787,651

 
1,787,651

 
1,787,651

Other intangible assets, net
 
22,560

 
23,964

 
25,506

 
27,047

 
28,589

Tangible common shareholders' equity
 
$
2,302,115

 
$
2,244,827

 
$
2,190,736

 
$
2,166,389

 
$
2,153,526

Total assets
 
$
27,355,625

 
$
26,939,781

 
$
26,615,067

 
$
26,480,601

 
$
25,816,401

Subtract:
 
 

 
 

 
 
 
 
 
 

Goodwill
 
1,787,651

 
1,787,651

 
1,787,651

 
1,787,651

 
1,787,651

Other intangible assets, net
 
22,560

 
23,964

 
25,506

 
27,047

 
28,589

Tangible assets
 
$
25,545,414

 
$
25,128,166

 
$
24,801,910

 
$
24,665,903

 
$
24,000,161

Common shares outstanding at period end
 
220,457

 
220,255

 
220,238

 
220,205

 
220,461

 
 
 
 
 
 
 
 
 
 
 
Total shareholders' equity to total assets ratio
 
15.03
%
 
15.06
%
 
15.04
%
 
15.03
%
 
15.38
%
Tangible common equity ratio
 
9.01
%
 
8.93
%
 
8.83
%
 
8.78
%
 
8.97
%
Book value per common share
 
$
18.65

 
$
18.42

 
$
18.18

 
$
18.08

 
$
18.01

Tangible book value per common share
 
$
10.44

 
$
10.19

 
$
9.95

 
$
9.84

 
$
9.77



Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 5


About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada. Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.
 
Earnings Conference Call Information
The Company will host its first quarter 2019 earnings conference call on Thursday, April 18, 2019, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its first quarter 2019 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (888) 394-8218 ten minutes prior to the start time and enter conference ID: 3915258. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 3915258. The earnings conference call will also be available as an audiocast, which can be accessed on the Company's investor relations page at umpquabank.com.
 
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about fee income initiatives and MSR fair value volatility. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation, prolonged low interest rate environment; the effect of interest rate increases on the cost of deposits; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; lack of strategic growth opportunities or our failure to execute on those opportunities; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives on time and in amounts projected; our ability to successfully develop and market new products and technology; and changes in laws or regulations.

Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 6


Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
 
 
Quarter Ended
 
% Change
(In thousands, except per share data)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases
 
$
258,747

 
$
254,093

 
$
246,410

 
$
242,123

 
$
229,488

 
2
 %
 
13
 %
Interest and dividends on investments:
 
 
 
 

 
 
 
 
 
 
 


 


Taxable
 
19,956

 
27,381

 
24,435

 
8,499

 
15,699

 
(27
)%
 
27
 %
Exempt from federal income tax
 
2,114

 
2,135

 
2,048

 
2,057

 
2,128

 
(1
)%
 
(1
)%
Dividends
 
517

 
538

 
549

 
433

 
468

 
(4
)%
 
10
 %
Temporary investments and interest bearing deposits
 
925

 
2,621

 
2,800

 
2,080

 
1,164

 
(65
)%
 
(21
)%
Total interest income
 
282,259

 
286,768

 
276,242

 
255,192

 
248,947

 
(2
)%
 
13
 %
Interest expense:
 
 

 
 

 
 

 
 

 
 

 


 


Deposits
 
34,094

 
30,124

 
25,692

 
21,259

 
15,610

 
13
 %
 
118
 %
Securities sold under agreement to repurchase and federal funds purchased
 
810

 
185

 
103

 
155

 
63

 
338
 %
 
1,186
 %
Term debt
 
3,683

 
3,326

 
3,439

 
3,478

 
3,361

 
11
 %
 
10
 %
Junior subordinated debentures
 
5,987

 
5,743

 
5,640

 
5,400

 
4,932

 
4
 %
 
21
 %
Total interest expense
 
44,574

 
39,378

 
34,874

 
30,292

 
23,966

 
13
 %
 
86
 %
Net interest income
 
237,685

 
247,390

 
241,368

 
224,900

 
224,981

 
(4
)%
 
6
 %
Provision for loan and lease losses
 
13,684

 
17,219

 
11,711

 
13,319

 
13,656

 
(21
)%
 
0
 %
Non-interest income:
 
 

 
 

 
 

 
 

 
 

 


 


Service charges on deposits
 
15,278

 
16,035

 
15,574

 
15,520

 
14,995

 
(5
)%
 
2
 %
Brokerage revenue
 
3,810

 
4,178

 
3,947

 
4,161

 
4,194

 
(9
)%
 
(9
)%
Residential mortgage banking revenue, net
 
11,231

 
15,150

 
31,484

 
33,163

 
38,438

 
(26
)%
 
(71
)%
Gain on sale of investment securities, net
 
—

 
—

 
—

 
14

 
—

 
0
 %
 
0
 %
Unrealized holding gains (losses) on equity securities
 
695

 
410

 
(462
)
 
(1,432
)
 
—

 
70
 %
 
nm

Gain on loan sales, net
 
769

 
2,484

 
2,772

 
1,348

 
1,230

 
(69
)%
 
(37
)%
BOLI income
 
2,168

 
2,116

 
2,051

 
2,060

 
2,070

 
2
 %
 
5
 %
Other income
 
11,789

 
16,438

 
17,022

 
16,817

 
17,640

 
(28
)%
 
(33
)%
Total non-interest income
 
45,740

 
56,811

 
72,388

 
71,651

 
78,567

 
(19
)%
 
(42
)%
Non-interest expense:
 
 

 
 

 
 

 
 

 
 

 


 


Salaries and employee benefits
 
100,658

 
102,109

 
103,575

 
113,340

 
106,551

 
(1
)%
 
(6
)%
Occupancy and equipment, net
 
36,245

 
35,949

 
36,530

 
37,584

 
38,661

 
1
 %
 
(6
)%
Intangible amortization
 
1,404

 
1,542

 
1,541

 
1,542

 
1,541

 
(9
)%
 
(9
)%
FDIC assessments
 
2,942

 
2,619

 
4,303

 
4,692

 
4,480

 
12
 %
 
(34
)%
(Gain) loss on other real estate owned, net
 
(51
)
 
1,125

 
(128
)
 
(92
)
 
(38
)
 
(105
)%
 
34
 %
Other expenses
 
30,394

 
35,144

 
33,471

 
38,506

 
34,918

 
(14
)%
 
(13
)%
Total non-interest expense
 
171,592

 
178,488

 
179,292

 
195,572

 
186,113

 
(4
)%
 
(8
)%
Income before provision for income taxes
 
98,149

 
108,494

 
122,753

 
87,660

 
103,779

 
(10
)%
 
(5
)%
Provision for income taxes
 
24,116

 
28,183

 
31,772

 
21,661

 
24,807

 
(14
)%
 
(3
)%
Net income
 
$
74,033

 
$
80,311

 
$
90,981

 
$
65,999

 
$
78,972

 
(8
)%
 
(6
)%
 
 
 
 
 
 
 
 
 
 
 
 


 


Weighted average basic shares outstanding
 
220,366

 
220,247

 
220,224

 
220,283

 
220,370

 
0
 %
 
0
 %
Weighted average diluted shares outstanding
 
220,655

 
220,668

 
220,620

 
220,647

 
220,825

 
0
 %
 
0
 %
Earnings per common share – basic
 
$
0.34

 
$
0.36

 
$
0.41

 
$
0.30

 
$
0.36

 
(6
)%
 
(6
)%
Earnings per common share – diluted
 
$
0.34

 
$
0.36

 
$
0.41

 
$
0.30

 
$
0.36

 
(6
)%
 
(6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
nm = not meaningful
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 7


Umpqua Holdings Corporation
Consolidated Balance Sheets
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
% Change
(In thousands, except per share data)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
296,967

 
$
335,419

 
$
308,938

 
$
314,513

 
$
304,681

 
(11
)%
 
(3
)%
Interest bearing cash and temporary investments
 
605,841

 
287,218

 
570,321

 
488,499

 
264,508

 
111
 %
 
129
 %
Investment securities:
 
 

 
 

 
 

 
 

 
 

 


 


Equity and other, at fair value
 
63,327

 
61,841

 
62,454

 
64,297

 
63,295

 
2
 %
 
0
 %
Available for sale, at fair value
 
2,894,778

 
2,977,108

 
2,864,394

 
2,854,398

 
2,947,414

 
(3
)%
 
(2
)%
Held to maturity, at amortized cost
 
3,478

 
3,606

 
3,672

 
3,586

 
3,667

 
(4
)%
 
(5
)%
Loans held for sale, at fair value
 
240,302

 
166,461

 
289,537

 
432,642

 
299,739

 
44
 %
 
(20
)%
Loans and leases
 
20,405,997

 
20,422,666

 
19,854,033

 
19,639,494

 
19,255,347

 
0
 %
 
6
 %
Allowance for loan and lease losses
 
(144,872
)
 
(144,871
)
 
(144,026
)
 
(144,556
)
 
(141,933
)
 
0
 %
 
2
 %
Net loans and leases
 
20,261,125

 
20,277,795

 
19,710,007

 
19,494,938

 
19,113,414

 
0
 %
 
6
 %
Restricted equity securities
 
47,466

 
40,268

 
40,269

 
42,320

 
43,501

 
18
 %
 
9
 %
Premises and equipment, net
 
217,595

 
227,423

 
237,456

 
245,954

 
259,354

 
(4
)%
 
(16
)%
Operating lease right-of-use assets
 
109,807

 
—

 
—

 
—

 
—

 
nm

 
nm

Goodwill
 
1,787,651

 
1,787,651

 
1,787,651

 
1,787,651

 
1,787,651

 
0
 %
 
0
 %
Other intangible assets, net
 
22,560

 
23,964

 
25,506

 
27,047

 
28,589

 
(6
)%
 
(21
)%
Residential mortgage servicing rights, at fair value
 
158,946

 
169,025

 
175,038

 
166,217

 
164,760

 
(6
)%
 
(4
)%
Other real estate owned
 
10,488

 
10,958

 
11,774

 
12,101

 
13,055

 
(4
)%
 
(20
)%
Bank owned life insurance
 
314,303

 
313,626

 
311,922

 
309,844

 
307,745

 
0
 %
 
2
 %
Other assets
 
320,991

 
257,418

 
216,128

 
236,594

 
215,028

 
25
 %
 
49
 %
Total assets
 
$
27,355,625

 
$
26,939,781

 
$
26,615,067

 
$
26,480,601

 
$
25,816,401

 
2
 %
 
6
 %
Liabilities:
 
 

 
 

 
 

 
 

 
 

 


 


Deposits
 
$
21,243,894

 
$
21,137,486

 
$
20,892,774

 
$
20,744,526

 
$
20,106,856

 
1
 %
 
6
 %
Securities sold under agreements to repurchase
 
288,944

 
297,151

 
286,975

 
273,666

 
291,984

 
(3
)%
 
(1
)%
Term debt
 
932,420

 
751,788

 
751,764

 
801,739

 
801,868

 
24
 %
 
16
 %
Junior subordinated debentures, at fair value
 
294,121

 
300,870

 
282,846

 
280,669

 
278,410

 
(2
)%
 
6
 %
Junior subordinated debentures, at amortized cost
 
88,667

 
88,724

 
88,781

 
88,838

 
88,895

 
0
 %
 
0
 %
Operating lease liabilities
 
118,520

 
—

 
—

 
—

 
—

 
nm

 
nm

Deferred tax liability, net
 
45,202

 
25,846

 
22,413

 
27,255

 
24,151

 
75
 %
 
87
 %
Other liabilities
 
231,531

 
281,474

 
285,621

 
282,821

 
254,471

 
(18
)%
 
(9
)%
Total liabilities
 
23,243,299

 
22,883,339

 
22,611,174

 
22,499,514

 
21,846,635

 
2
 %
 
6
 %
Shareholders' equity:
 
 

 
 

 
 

 
 

 
 

 


 


Common stock
 
3,511,731

 
3,512,874

 
3,510,949

 
3,509,146

 
3,515,506

 
0
 %
 
0
 %
Retained earnings
 
629,877

 
602,482

 
568,619

 
524,031

 
502,214

 
5
 %
 
25
 %
Accumulated other comprehensive loss
 
(29,282
)
 
(58,914
)
 
(75,675
)
 
(52,090
)
 
(47,954
)
 
(50
)%
 
(39
)%
Total shareholders' equity
 
4,112,326

 
4,056,442

 
4,003,893

 
3,981,087

 
3,969,766

 
1
 %
 
4
 %
Total liabilities and shareholders' equity
 
$
27,355,625

 
$
26,939,781

 
$
26,615,067

 
$
26,480,601

 
$
25,816,401

 
2
 %
 
6
 %
 
 
 
 
 
 
 
 
 
 
 
 


 


Common shares outstanding at period end
 
220,457

 
220,255

 
220,238

 
220,205

 
220,461

 
0
 %
 
0
 %
Book value per common share
 
$
18.65

 
$
18.42

 
$
18.18

 
$
18.08

 
$
18.01

 
1
 %
 
4
 %
Tangible book value per common share
 
$
10.44

 
$
10.19

 
$
9.95

 
$
9.84

 
$
9.77

 
2
 %
 
7
 %
Tangible equity - common
 
$
2,302,115

 
$
2,244,827

 
$
2,190,736

 
$
2,166,389

 
$
2,153,526

 
3
 %
 
7
 %
Tangible common equity to tangible assets
 
9.01
%
 
8.93
%
 
8.83
%
 
8.78
%
 
8.97
%
 
0.08

 
0.04


Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 8


Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
(Dollars in thousands)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
% Change
 
 
Amount
 
Amount
 
Amount
 
Amount
 
Amount
 
Seq. Quarter
 
Year over Year
Loans and leases:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

Commercial real estate:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

Non-owner occupied term, net
 
$
3,476,972

 
$
3,573,065

 
$
3,527,357

 
$
3,518,982

 
$
3,519,366

 
(3
)%
 
(1
)%
Owner occupied term, net
 
2,449,648

 
2,480,371

 
2,474,845

 
2,473,734

 
2,464,705

 
(1
)%
 
(1
)%
Multifamily, net
 
3,302,936

 
3,304,763

 
3,225,538

 
3,185,923

 
3,103,794

 
0
 %
 
6
 %
Construction & development, net
 
686,107

 
736,254

 
646,684

 
568,562

 
522,670

 
(7
)%
 
31
 %
Residential development, net
 
205,963

 
196,890

 
198,518

 
183,114

 
179,954

 
5
 %
 
14
 %
Commercial:
 
 
 
 
 
 
 
 
 
 
 


 


Term, net
 
2,185,322

 
2,232,923

 
2,149,376

 
2,106,658

 
2,025,052

 
(2
)%
 
8
 %
Lines of credit & other, net
 
1,229,092

 
1,169,525

 
1,133,508

 
1,152,853

 
1,147,123

 
5
 %
 
7
 %
Leases & equipment finance, net
 
1,378,686

 
1,330,155

 
1,282,128

 
1,265,843

 
1,228,709

 
4
 %
 
12
 %
Residential:
 
 
 
 
 
 
 
 
 
 
 


 


Mortgage, net
 
3,768,955

 
3,635,073

 
3,468,569

 
3,405,775

 
3,275,088

 
4
 %
 
15
 %
Home equity loans & lines, net
 
1,170,252

 
1,176,477

 
1,143,351

 
1,132,329

 
1,103,048

 
(1
)%
 
6
 %
   Consumer & other, net
 
552,064

 
587,170

 
604,159

 
645,721

 
685,838

 
(6
)%
 
(20
)%
Total loans, net of deferred fees and costs
 
$
20,405,997

 
$
20,422,666

 
$
19,854,033

 
$
19,639,494

 
$
19,255,347

 
0
 %
 
6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan and leases mix:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Non-owner occupied term, net
 
17
%
 
17
%
 
18
%
 
18
%
 
18
%
 
 
 
 
   Owner occupied term, net
 
12
%
 
12
%
 
13
%
 
13
%
 
13
%
 
 
 
 
   Multifamily, net
 
16
%
 
16
%
 
16
%
 
16
%
 
16
%
 
 
 
 
Construction & development, net
 
3
%
 
4
%
 
3
%
 
3
%
 
3
%
 
 
 
 
Residential development, net
 
1
%
 
1
%
 
1
%
 
1
%
 
1
%
 
 
 
 
Commercial:
 
 

 
 
 


 


 


 
 
 
 
Term, net
 
11
%
 
11
%
 
11
%
 
11
%
 
11
%
 
 
 
 
Lines of credit & other, net
 
6
%
 
6
%
 
6
%
 
6
%
 
6
%
 
 
 
 
Leases & equipment finance, net
 
7
%
 
6
%
 
6
%
 
6
%
 
6
%
 
 
 
 
Residential:
 
 

 


 


 


 


 
 
 
 
Mortgage, net
 
18
%
 
18
%
 
17
%
 
17
%
 
17
%
 
 
 
 
Home equity loans & lines, net
 
6
%
 
6
%
 
6
%
 
6
%
 
6
%
 
 
 
 
   Consumer & other, net
 
3
%
 
3
%
 
3
%
 
3
%
 
3
%
 
 
 
 
Total
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
 
 



Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 9


Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
% Change
 
 
Amount
 
Amount
 
Amount
 
Amount
 
Amount
 
Seq. Quarter
 
Year over Year
Deposits:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

Demand, non-interest bearing
 
$
6,495,562

 
$
6,667,467

 
$
6,859,411

 
$
6,819,325

 
$
6,699,399

 
(3
)%
 
(3
)%
Demand, interest bearing
 
2,341,441

 
2,340,471

 
2,320,560

 
2,321,691

 
2,354,873

 
0
 %
 
(1
)%
Money market
 
6,469,286

 
6,645,390

 
6,325,808

 
6,161,907

 
6,546,704

 
(3
)%
 
(1
)%
Savings
 
1,479,509

 
1,492,685

 
1,499,872

 
1,465,154

 
1,482,560

 
(1
)%
 
0
 %
Time
 
4,458,096

 
3,991,473

 
3,887,123

 
3,976,449

 
3,023,320

 
12
 %
 
47
 %
Total
 
$
21,243,894

 
$
21,137,486

 
$
20,892,774

 
$
20,744,526

 
$
20,106,856

 
1
 %
 
6
 %
 
 
 
 
 
 
 
 
 
 
 
 


 


Total core deposits (1)
 
$
17,903,754

 
$
18,190,402

 
$
18,012,992

 
$
17,743,888

 
$
18,007,169

 
(2
)%
 
(1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit mix:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand, non-interest bearing
 
31
%
 
32
%
 
33
%
 
33
%
 
33
%
 
 
 
 
Demand, interest bearing
 
11
%
 
11
%
 
11
%
 
11
%
 
12
%
 
 
 
 
Money market
 
30
%
 
31
%
 
30
%
 
30
%
 
33
%
 
 
 
 
Savings
 
7
%
 
7
%
 
7
%
 
7
%
 
7
%
 
 
 
 
Time
 
21
%
 
19
%
 
19
%
 
19
%
 
15
%
 
 
 
 
Total
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of open accounts:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

Demand, non-interest bearing
 
406,039

 
406,240

 
404,913

 
402,771

 
399,721

 


 


Demand, interest bearing
 
76,712

 
77,099

 
77,546

 
77,918

 
78,181

 


 


Money market
 
56,602

 
56,196

 
55,895

 
55,393

 
54,752

 


 


Savings
 
161,039

 
161,656

 
162,387

 
162,414

 
162,841

 


 


Time
 
58,210

 
54,388

 
52,482

 
51,073

 
48,529

 


 


Total
 
758,602

 
755,579

 
753,223

 
749,569

 
744,024

 


 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average balance per account:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

Demand, non-interest bearing
 
$
16.0

 
$
16.4

 
$
16.9

 
$
16.9

 
$
16.8

 
 

 
 

Demand, interest bearing
 
30.5

 
30.4

 
29.9

 
29.8

 
30.1

 
 

 
 

Money market
 
114.3

 
118.3

 
113.2

 
111.2

 
119.6

 
 

 
 

Savings
 
9.2

 
9.2

 
9.2

 
9.0

 
9.1

 
 

 
 

Time
 
76.6

 
73.4

 
74.1

 
77.9

 
62.3

 
 

 
 

Total
 
$
28.0

 
$
28.0

 
$
27.7

 
$
27.7

 
$
27.0

 
 

 
 

 
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.



Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 10


 
Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
 (Unaudited)
 
 
Quarter Ended
 
% Change
(Dollars in thousands)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Non-performing assets:
 
 

 
 

 
 
 
 
 
 

 
 

 
 

Loans and leases on non-accrual status
 
$
44,586

 
$
50,823

 
$
54,059

 
$
43,392

 
$
45,702

 
(12
)%
 
(2
)%
Loans and leases past due 90+ days and accruing (1)
 
31,424

 
36,444

 
33,812

 
34,535

 
25,456

 
(14
)%
 
23
 %
Total non-performing loans and leases
 
76,010

 
87,267

 
87,871

 
77,927

 
71,158

 
(13
)%
 
7
 %
Other real estate owned
 
10,488

 
10,958

 
11,774

 
12,101

 
13,055

 
(4
)%
 
(20
)%
Total non-performing assets
 
$
86,498

 
$
98,225

 
$
99,645

 
$
90,028

 
$
84,213

 
(12
)%
 
3
 %
 
 
 
 
 
 
 
 
 
 
 
 


 


Performing restructured loans and leases
 
$
15,726

 
$
13,924

 
$
14,531

 
$
27,167

 
$
31,677

 
13
 %
 
(50
)%
Loans and leases past due 31-89 days
 
$
53,009

 
$
37,373

 
$
33,825

 
$
44,734

 
$
38,569

 
42
 %
 
37
 %
Loans and leases past due 31-89 days to total loans and leases
 
0.26
%
 
0.18
%
 
0.17
%
 
0.23
%
 
0.20
%
 
 

 
 

Non-performing loans and leases to total loans and leases (1)
 
0.37
%
 
0.43
%
 
0.44
%
 
0.40
%
 
0.37
%
 
 

 
 

Non-performing assets to total assets(1)
 
0.32
%
 
0.36
%
 
0.37
%
 
0.34
%
 
0.33
%
 
 

 
 


(1) 
Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $158,000, $8.9 million, $8.0 million, $9.2 million, and $6.3 million at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.
 

Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 11


Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
 (Unaudited)
 
 
Quarter Ended
 
% Change
(Dollars in thousands)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance beginning of period
 
$
144,871

 
$
144,026

 
$
144,556

 
$
141,933

 
$
140,608

 
 
 
 
Provision for loan and lease losses
 
13,684

 
17,219

 
11,711

 
13,319

 
13,656

 
(21
)%
 
0
 %
Charge-offs
 
(17,152
)
 
(19,527
)
 
(15,896
)
 
(14,815
)
 
(15,812
)
 
(12
)%
 
8
 %
Recoveries
 
3,469

 
3,153

 
3,655

 
4,119

 
3,481

 
10
 %
 
0
 %
Net charge-offs
 
(13,683
)
 
(16,374
)
 
(12,241
)
 
(10,696
)
 
(12,331
)
 
(16
)%
 
11
 %
Total allowance for loan and lease losses
 
144,872

 
144,871

 
144,026

 
144,556

 
141,933

 
0
 %
 
2
 %
Reserve for unfunded commitments
 
4,654

 
4,523

 
4,294

 
4,130

 
4,129

 
3
 %
 
13
 %
Total allowance for credit losses
 
$
149,526

 
$
149,394

 
$
148,320

 
$
148,686

 
$
146,062

 
0
 %
 
2
 %
 
 
 

 
 

 
 
 
 
 
 

 
 

 
 

Net charge-offs to average loans and leases (annualized)
 
0.27
%
 
0.32
%
 
0.25
%
 
0.22
%
 
0.26
%
 
 

 
 

Recoveries to gross charge-offs
 
20.23
%
 
16.15
%
 
22.99
%
 
27.80
%
 
22.01
%
 
 
 
 

Allowance for loan and lease losses to loans and leases
 
0.71
%
 
0.71
%
 
0.73
%
 
0.74
%
 
0.74
%
 
 

 
 

Allowance for credit losses to loans and leases
 
0.73
%
 
0.73
%
 
0.75
%
 
0.76
%
 
0.76
%
 
 

 
 



Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 12


Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
 
 
Quarter Ended
 
% Change
 
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Average Rates:
 
 

 
 

 
 

 
 
 
 

 
 
 
 
Yield on loans held for sale
 
5.95
%
 
5.81
%
 
5.27
%
 
4.86
%
 
4.21
%
 
0.14

 
1.74

Yield on loans and leases
 
5.06
%
 
4.97
%
 
4.89
%
 
4.91
%
 
4.80
%
 
0.09

 
0.26

Yield on taxable investments
 
2.96
%
 
4.11
%
 
3.72
%
 
1.31
%
 
2.31
%
 
(1.15
)
 
0.65

Yield on tax-exempt investments (1)
 
3.59
%
 
3.70
%
 
3.61
%
 
3.64
%
 
3.68
%
 
(0.11
)
 
(0.09
)
Yield on interest bearing cash and temporary investments
 
2.44
%
 
2.25
%
 
1.99
%
 
1.82
%
 
1.55
%
 
0.19

 
0.89

Total yield on earning assets (1)
 
4.79
%
 
4.81
%
 
4.67
%
 
4.41
%
 
4.43
%
 
(0.02
)
 
0.36

 
 
 
 
 
 
 
 
 
 
 
 


 


Cost of interest bearing deposits
 
0.97
%
 
0.85
%
 
0.73
%
 
0.62
%
 
0.47
%
 
0.12

 
0.50

Cost of securities sold under agreements
 
 

 
 

 
 

 
 
 
 
 


 


to repurchase and fed funds purchased
 
0.88
%
 
0.26
%
 
0.15
%
 
0.22
%
 
0.08
%
 
0.62

 
0.80

Cost of term debt
 
1.88
%
 
1.75
%
 
1.73
%
 
1.74
%
 
1.70
%
 
0.13

 
0.18

Cost of junior subordinated debentures
 
6.24
%
 
6.13
%
 
6.06
%
 
5.89
%
 
5.36
%
 
0.11

 
0.88

Total cost of interest bearing liabilities
 
1.14
%
 
1.00
%
 
0.90
%
 
0.80
%
 
0.65
%
 
0.14

 
0.49

 
 
 
 
 
 
 
 
 
 
 
 


 


Net interest spread (1)
 
3.65
%
 
3.81
%
 
3.77
%
 
3.61
%
 
3.78
%
 
(0.16
)
 
(0.13
)
Net interest margin (1)
 
4.03
%
 
4.15
%
 
4.09
%
 
3.89
%
 
4.00
%
 
(0.12
)
 
0.03

 
 
 
 
 
 
 
 
 
 
 
 


 


Performance Ratios:
 
 

 
 

 
 

 
 
 
 
 


 


Return on average assets
 
1.12
%
 
1.19
%
 
1.36
%
 
1.02
%
 
1.25
%
 
(0.07
)
 
(0.13
)
Return on average tangible assets
 
1.20
%
 
1.28
%
 
1.46
%
 
1.09
%
 
1.35
%
 
(0.08
)
 
(0.15
)
Return on average common equity
 
7.34
%
 
7.90
%
 
9.00
%
 
6.64
%
 
8.06
%
 
(0.56
)
 
(0.72
)
Return on average tangible common equity
 
13.17
%
 
14.34
%
 
16.42
%
 
12.18
%
 
14.84
%
 
(1.17
)
 
(1.67
)
Efficiency ratio – Consolidated
 
60.44
%
 
58.58
%
 
57.06
%
 
65.84
%
 
61.21
%
 
1.86

 
(0.77
)
Efficiency ratio – Bank
 
58.57
%
 
57.67
%
 
54.70
%
 
63.04
%
 
59.24
%
 
0.90

 
(0.67
)

(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.


Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 13


Umpqua Holdings Corporation
Average Balances
(Unaudited)
 
 
Quarter Ended
 
% Change
(Dollars in thousands)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Temporary investments and interest bearing cash
 
$
153,347

 
$
462,621

 
$
558,597

 
$
458,133

 
$
303,670

 
(67
)%
 
(50
)%
Investment securities, taxable
 
2,757,644

 
2,716,616

 
2,687,635

 
2,723,406

 
2,793,449

 
2
 %
 
(1
)%
Investment securities, tax-exempt
 
287,366

 
282,998

 
278,937

 
279,158

 
286,603

 
2
 %
 
0
 %
Loans held for sale
 
187,656

 
238,958

 
320,494

 
326,427

 
267,231

 
(21
)%
 
(30
)%
Loans and leases
 
20,388,988

 
20,051,674

 
19,709,113

 
19,387,537

 
19,089,713

 
2
 %
 
7
 %
Total interest earning assets
 
23,775,001

 
23,752,867

 
23,554,776

 
23,174,661

 
22,740,666

 
0
 %
 
5
 %
Goodwill and other intangible assets, net
 
1,811,007

 
1,812,487

 
1,814,000

 
1,815,529

 
1,817,068

 
0
 %
 
0
 %
Total assets
 
26,811,621

 
26,672,224

 
26,461,526

 
26,076,142

 
25,625,869

 
1
 %
 
5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing demand deposits
 
6,505,615

 
6,828,730

 
6,865,676

 
6,645,689

 
6,450,364

 
(5
)%
 
1
 %
Interest bearing deposits
 
14,304,325

 
14,138,852

 
13,897,141

 
13,745,089

 
13,492,965

 
1
 %
 
6
 %
Total deposits
 
20,809,940

 
20,967,582

 
20,762,817

 
20,390,778

 
19,943,329

 
(1
)%
 
4
 %
Interest bearing liabilities
 
15,858,561

 
15,547,250

 
15,331,529

 
15,199,900

 
14,971,759

 
2
 %
 
6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity - common
 
4,091,174

 
4,035,125

 
4,011,856

 
3,988,825

 
3,974,788

 
1
 %
 
3
 %
Tangible common equity (1)
 
2,280,167

 
2,222,638

 
2,197,856

 
2,173,296

 
2,157,720

 
3
 %
 
6
 %
 
 
 
 
 
 
 
(1) Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders' equity less average goodwill and other intangible assets, net (excluding MSRs).



Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 14


Umpqua Holdings Corporation
Average Rates and Balances
(unaudited)
(dollars in thousands)
Quarter Ended
 
March 31, 2019
 
December 31, 2018
 
March 31, 2018
 
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
$
187,656

 
$
2,790

 
5.95
%
 
$
238,958

 
$
3,473

 
5.81
%
 
$
267,231

 
$
2,815

 
4.21
%
Loans and leases (1)
20,388,988

 
255,957

 
5.06
%
 
20,051,674

 
250,620

 
4.97
%
 
19,089,713

 
226,673

 
4.80
%
Taxable securities
2,757,644

 
20,473

 
2.96
%
 
2,716,616

 
27,919

 
4.11
%
 
2,793,449

 
16,167

 
2.31
%
Non-taxable securities (2)
287,366

 
2,580

 
3.59
%
 
282,998

 
2,619

 
3.70
%
 
286,603

 
2,640

 
3.68
%
Temporary investments and interest-bearing cash
153,347

 
925

 
2.44
%
 
462,621

 
2,621

 
2.25
%
 
303,670

 
1,164

 
1.55
%
Total interest-earning assets
23,775,001

 
$
282,725

 
4.79
%
 
23,752,867

 
287,252

 
4.81
%
 
22,740,666

 
$
249,459

 
4.43
%
Other assets
3,036,620

 
 
 
 
 
2,919,357

 
 
 
 
 
2,885,203

 
 
 
 
Total assets
$
26,811,621

 
 
 
 
 
$
26,672,224

 
 
 
 
 
$
25,625,869

 
 
 
 
INTEREST-BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
$
2,319,718

 
$
2,640

 
0.46
%
 
$
2,319,613

 
$
2,659

 
0.45
%
 
$
2,323,232

 
$
1,210

 
0.21
%
Money market deposits
6,391,721

 
11,017

 
0.70
%
 
6,371,127

 
9,170

 
0.57
%
 
6,908,067

 
5,713

 
0.34
%
Savings deposits
1,488,530

 
270

 
0.07
%
 
1,488,768

 
490

 
0.13
%
 
1,463,058

 
163

 
0.05
%
Time deposits
4,104,356

 
20,167

 
1.99
%
 
3,959,344

 
17,805

 
1.78
%
 
2,798,608

 
8,524

 
1.24
%
Total interest-bearing deposits
14,304,325

 
34,094

 
0.97
%
 
14,138,852

 
30,124

 
0.85
%
 
13,492,965

 
15,610

 
0.47
%
Repurchase agreements and federal funds purchased
371,336

 
810

 
0.88
%
 
284,847

 
185

 
0.26
%
 
303,059

 
63

 
0.08
%
Term debt
793,797

 
3,683

 
1.88
%
 
751,773

 
3,326

 
1.75
%
 
802,297

 
3,361

 
1.70
%
Junior subordinated debentures
389,103

 
5,987

 
6.24
%
 
371,778

 
5,743

 
6.13
%
 
373,438

 
4,932

 
5.36
%
Total interest-bearing liabilities
15,858,561

 
$
44,574

 
1.14
%
 
15,547,250

 
$
39,378

 
1.00
%
 
14,971,759

 
$
23,966

 
0.65
%
Non-interest-bearing deposits
6,505,615

 
 
 
 
 
6,828,730

 
 
 
 
 
6,450,364

 
 
 
 
Other liabilities
356,271

 
 
 
 
 
261,119

 
 
 
 
 
228,958

 
 
 
 
Total liabilities
22,720,447

 
 
 
 
 
22,637,099

 
 
 
 
 
21,651,081

 
 
 
 
Common equity
4,091,174

 
 
 
 
 
4,035,125

 
 
 
 
 
3,974,788

 
 
 
 
Total liabilities and shareholders' equity
$
26,811,621

 
 
 
 
 
$
26,672,224

 
 
 
 
 
$
25,625,869

 
 
 
 
NET INTEREST INCOME
 
 
$
238,151

 
 
 
 
 
$
247,874

 
 
 
 
 
$
225,493

 
 
NET INTEREST SPREAD
 
 
 
 
3.65
%
 
 
 
 
 
3.81
%
 
 
 
 
 
3.78
%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
 
 
 
 
4.03
%
 
 
 
 
 
4.15
%
 
 
 
 
 
4.00
%
(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. The amount of such adjustment was an addition to recorded income of approximately $466,000 for the three months ended March 31, 2019 as compared to $484,000 for December 31, 2018 and $512,000 for March 31, 2018. 


Umpqua Reports First Quarter 2019 Results
April 17, 2019
Page 15



Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(unaudited)
 
 
Quarter Ended
 
% Change
(Dollars in thousands)
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Seq. Quarter
 
Year over Year
Residential mortgage servicing rights:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans serviced for others
 
$
15,902,587

 
$
15,978,885

 
$
15,810,455

 
$
15,508,182

 
$
15,442,915

 
0
 %
 
3
 %
MSR asset, at fair value
 
158,946

 
169,025

 
175,038

 
166,217

 
164,760

 
(6
)%
 
(4
)%
MSR as % of serviced portfolio
 
1.00
%
 
1.06
%
 
1.11
%
 
1.07
%
 
1.07
%
 
(0.06
)
 
(0.07
)
Residential mortgage banking revenue:
 
 

 
 

 
 
 
 
 
 

 


 


Origination and sale
 
$
14,373

 
$
16,665

 
$
20,983

 
$
28,159

 
$
22,837

 
(14
)%
 
(37
)%
Servicing
 
10,824

 
11,555

 
10,302

 
10,407

 
10,522

 
(6
)%
 
3
 %
Change in fair value of MSR asset
 
(13,966
)
 
(13,070
)
 
199

 
(5,403
)
 
5,079

 
7
 %
 
(375
)%
Total
 
$
11,231

 
$
15,150

 
$
31,484

 
$
33,163

 
$
38,438

 
(26
)%
 
(71
)%
 
 
 
 
 
 
 
 
 
 
 
 


 


Closed loan volume:
 
 
 
 
 
 
 
 
 
 
 


 


Closed loan volume - portfolio
 
$
318,612

 
$
312,524

 
$
323,941

 
$
294,581

 
$
237,783

 
2
 %
 
34
 %
Closed loan volume - for-sale
 
487,090

 
589,355

 
756,924

 
839,489

 
687,226

 
(17
)%
 
(29
)%
Closed loan volume - total
 
$
805,702

 
$
901,879

 
$
1,080,865

 
$
1,134,070

 
$
925,009

 
(11
)%
 
(13
)%
 
 
 
 
 
 
 
 
 
 
 
 


 


Gain on sale margin:
 
 
 
 
 
 
 
 
 
 
 


 


Based on for-sale volume
 
2.95
%
 
2.83
%
 
2.77
%
 
3.35
%
 
3.32
%
 
0.12

 
(0.37
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



###