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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018, whether or not recognized or recorded at fair value in the Condensed Consolidated Balance Sheets:



(in thousands)		June 30, 2019				December 31, 2018
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
FINANCIAL ASSETS:
Cash and cash equivalents	1	$	1,033,791	$	1,033,791	$	622,637	$	622,637
Equity and other investment securities	1,2	66,358		66,358		61,841		61,841
Investment securities available for sale	2	2,698,398		2,698,398		2,977,108		2,977,108
Investment securities held to maturity	3	3,416		4,462		3,606		4,644
Loans held for sale, at fair value	2	356,645		356,645		166,461		166,461
Loans and leases, net	3	20,802,302		20,884,392		20,277,795		20,117,939
Restricted equity securities	1	43,063		43,063		40,268		40,268
Residential mortgage servicing rights	3	139,780		139,780		169,025		169,025
Bank owned life insurance	1	316,435		316,435		313,626		313,626
Derivatives	2,3	147,835		147,835		49,484		49,484
Visa Inc. Class B common stock⁽¹⁾	3	—		—		—		99,353
FINANCIAL LIABILITIES:
Deposits	1,2	$	21,819,013	$	21,837,396	$	21,137,486	$	21,116,852
Securities sold under agreements to repurchase	2	308,052		308,052		297,151		297,151
Term debt	2	821,712		818,289		751,788		738,107
Junior subordinated debentures, at fair value	3	277,028		277,028		300,870		300,870
Junior subordinated debentures, at amortized cost	3	88,610		71,224		88,724		76,569
Derivatives	2	9,323		9,323		15,982		15,982

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 June 30, 2019 and December 31, 2018:



(in thousands)	June 30, 2019
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Equity and other investment securities
Investments in mutual funds and other securities	$	51,924	$	51,924	$	—	$	—
Equity securities held in rabbi trusts	12,369		12,369		—		—
Other investments securities ⁽¹⁾	2,065		—		2,065		—
Investment securities available for sale
U.S. Treasury and agencies	337,101		—		337,101		—
Obligations of states and political subdivisions	270,952		—		270,952		—
Residential mortgage-backed securities and collateralized mortgage obligations	2,090,345		—		2,090,345		—
Loans held for sale, at fair value	356,645		—		356,645		—
Residential mortgage servicing rights, at fair value	139,780		—		—		139,780
Derivatives
Interest rate lock commitments	8,149		—		—		8,149
Interest rate forward sales commitments	58		—		58		—
Interest rate swaps	138,826		—		138,826		—
Foreign currency derivative	802		—		802		—
Total assets measured at fair value	$	3,409,016	$	64,293	$	3,196,794	$	147,929
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	277,028	$	—	$	—	$	277,028
Derivatives
Interest rate forward sales commitments	3,189		—		3,189		—
Interest rate swaps	5,529		—		5,529		—
Foreign currency derivative	605		—		605		—
Total liabilities measured at fair value	$	286,351	$	—	$	9,323	$	277,028

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



(in thousands)	December 31, 2018
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Equity and other investment securities
Investments in mutual funds and other securities	$	50,475	$	50,475	$	—	$	—
Equity securities held in rabbi trusts	10,918		10,918		—		—
Other investments securities ⁽¹⁾	448		—		448		—
Investment securities available for sale
U.S. Treasury and agencies	39,656		—		39,656		—
Obligations of states and political subdivisions	309,171		—		309,171		—
Residential mortgage-backed securities and collateralized mortgage obligations	2,628,281		—		2,628,281		—
Loans held for sale, at fair value	166,461		—		166,461		—
Residential mortgage servicing rights, at fair value	169,025		—		—		169,025
Derivatives
Interest rate lock commitments	6,757		—		—		6,757
Interest rate forward sales commitments	1		—		1		—
Interest rate swaps	42,276		—		42,276		—
Foreign currency derivative	450		—		450		—
Total assets measured at fair value	$	3,423,919	$	61,393	$	3,186,744	$	175,782
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	300,870	$	—	$	—	$	300,870
Derivatives
Interest rate forward sales commitments	2,963		—		2,963		—
Interest rate swaps	12,746		—		12,746		—
Foreign currency derivative	273		—		273		—
Total liabilities measured at fair value	$	316,852	$	—	$	15,982	$	300,870

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

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 June 30, 2019:



Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average
Residential mortgage servicing rights	Discounted cash flow
		Constant prepayment rate	15.09%
		Discount rate	9.70%
Interest rate lock commitments	Internal pricing model
		Pull-through rate	88.48%
Junior subordinated debentures	Discounted cash flow
		Credit spread	5.02%

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

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2019 and 2018:



(in thousands)
Three Months Ended June 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
2019
Residential mortgage servicing rights	$	158,946	$	(24,658	)	$	—		$	5,492	$	—		$	139,780	$	(17,753	)
Interest rate lock commitments, net	8,174		1,302			—			6,892		(8,219		)	8,149		8,149
Junior subordinated debentures, at fair value	294,121		4,685			(17,240		)	—		(4,538		)	277,028		(12,555		)

2018
Residential mortgage servicing rights	$	164,760	$	(5,403	)	$	—		$	6,860	$	—		$	166,217	$	500
Interest rate lock commitments, net	5,874		249			—			8,099		(7,440		)	6,782		6,782
Junior subordinated debentures, at fair value	278,410		4,283			1,513			—		(3,537		)	280,669		5,796



(in thousands)
Six Months Ended June 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
2019
Residential mortgage servicing rights	$	169,025	$	(38,624	)	$	—		$	9,379	$	—		$	139,780	$	(25,288	)
Interest rate lock commitment, net	6,757		2,999			—			12,291		(13,898		)	8,149		8,149
Junior subordinated debentures, at fair value	300,870		9,457			(23,804		)	—		(9,495		)	277,028		(14,347		)

2018
Residential mortgage servicing rights	$	153,151	$	(324	)	$	—		$	13,390	$	—		$	166,217	$	11,777
Interest rate lock commitment, net	4,752		(1,004		)	—			14,532		(11,498		)	6,782		6,782
Junior subordinated debentures, at fair value	277,155		8,058			3,196			—		(7,740		)	280,669		11,254

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)	June 30, 2019
	Total		Level 1		Level 2		Level 3
Loans and leases	$	40,453	$	—	$	—	$	40,453
Other real estate owned	5,178		—		—		5,178
	$	45,631	$	—	$	—	$	45,631



(in thousands)	December 31, 2018
	Total		Level 1		Level 2		Level 3
Loans and leases	$	98,696	$	—	$	—	$	98,696
Other real estate owned	7,532		—		—		7,532
	$	106,228	$	—	$	—	$	106,228

Losses Resulting From Nonrecurring Fair Value Adjustments

The following table presents the losses resulting from nonrecurring fair value adjustments for the three and six months ended June 30, 2019 and 2018:



(in thousands)	Three Months Ended				Six Months Ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Loans and leases	$	15,136	$	13,682	$	30,632	$	27,721
Other real estate owned	2,675		61		2,734		66
Total loss from nonrecurring measurements	$	17,811	$	13,743	$	33,366	$	27,787

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 June 30, 2019 and December 31, 2018:



(in thousands)	June 30, 2019						December 31, 2018
	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	$	356,645	$	342,770	$	13,875	$	166,461	$	160,270	$	6,191