XML 57 R22.htm IDEA: XBRL DOCUMENT

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

9 Months Ended

Sep. 30, 2019

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, 2019 and 2018:


(in thousands)	Three Months Ended September 30, 2019
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Balance, beginning of period	$	48,997	$	68,353	$	23,654	$	10,065	$	151,069
Charge-offs	(497)		(20,457)		(305)		(1,853)		(23,112)
Recoveries	177		4,263		94		570		5,104
Provision	2,524		18,797		1,113		793		23,227
Balance, end of period	$	51,201	$	70,956	$	24,556	$	9,575	$	156,288

(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)	Nine Months Ended September 30, 2019
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Balance, beginning of period	$	47,904	$	63,957	$	22,034	$	10,976	$	144,871
Charge-offs	(3,035)		(48,364)		(507)		(5,065)		(56,971)
Recoveries	733		9,228		399		1,765		12,125
Provision	5,599		46,135		2,630		1,899		56,263
Balance, end of period	$	51,201	$	70,956	$	24,556	$	9,575	$	156,288

(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

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, 2019 and 2018:


(in thousands)	September 30, 2019
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	49,676	$	70,783	$	24,255	$	9,567	$	154,281
Individually evaluated for impairment	188		10		—		—		198
Loans acquired with deteriorated credit quality	1,337		163		301		8		1,809
Total	$	51,201	$	70,956	$	24,556	$	9,575	$	156,288
Loans and leases:
Collectively evaluated for impairment	$	10,402,556	$	5,043,000	$	5,450,319	$	494,414	$	21,390,289
Individually evaluated for impairment	17,973		7,696		—		—		25,669
Loans acquired with deteriorated credit quality	84,025		571		19,933		307		104,836
Total	$	10,504,554	$	5,051,267	$	5,470,252	$	494,721	$	21,520,794


(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

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, 2019 and 2018:


(in thousands)	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Balance, beginning of period	$	4,857	$	4,130	$	4,523	$	3,963
Net charge to other expense	228		164		562		331
Balance, end of period	$	5,085	$	4,294	$	5,085	$	4,294


(in thousands)	Total
Unfunded loan and lease commitments:
September 30, 2019	$	5,744,307
September 30, 2018	$	5,244,832

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, 2019 and December 31, 2018:


(in thousands)	September 30, 2019
	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	$	20	$	1,690	$	—	$	1,710	$	9,677	$	3,484,168	$	3,495,555
Owner occupied term, net	4,131		4,062		1		8,194		5,609		2,552,496		2,566,299
Multifamily, net	—		—		—		—		—		3,479,986		3,479,986
Construction & development, net	—		—		—		—		—		771,214		771,214
Residential development, net	—		—		—		—		—		191,500		191,500
Commercial
Term, net	465		1,012		—		1,477		2,763		2,306,519		2,310,759
Lines of credit & other, net	1,961		533		226		2,720		1,048		1,250,987		1,254,755
Leases & equipment finance, net	7,199		9,906		3,321		20,426		12,539		1,452,788		1,485,753
Residential
Mortgage, net⁽²⁾	—		7,698		35,401		43,099		—		4,202,575		4,245,674
Home equity loans & lines, net	1,317		1,109		1,232		3,658		—		1,220,920		1,224,578
Consumer & other, net	2,445		842		791		4,078		—		490,643		494,721
Total, net of deferred fees and costs	$	17,538	$	26,852	$	40,972	$	85,362	$	31,636	$	21,403,796	$	21,520,794

⁽¹⁾ Other includes purchased credit impaired loans of $104.8 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 $5.2 million at September 30, 2019.


(in thousands)	December 31, 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	$	1,192	$	1,042	$	—	$	2,234	$	10,033	$	3,560,798	$	3,573,065
Owner occupied term, net	3,920		1,372		1		5,293		8,682		2,466,396		2,480,371
Multifamily, net	107		—		—		107		4,298		3,300,358		3,304,763
Construction & development, net	—		—		—		—		—		736,254		736,254
Residential development, net	—		—		—		—		—		196,890		196,890
Commercial
Term, net	992		117		—		1,109		11,772		2,220,042		2,232,923
Lines of credit & other, net	1,286		143		83		1,512		2,275		1,165,738		1,169,525
Leases & equipment finance, net	8,571		8,754		3,016		20,341		13,763		1,296,051		1,330,155
Residential
Mortgage, net⁽²⁾	—		4,900		39,218		44,118		—		3,590,955		3,635,073
Home equity loans & lines, net	987		368		2,492		3,847		—		1,172,630		1,176,477
Consumer & other, net	2,711		911		551		4,173		—		582,997		587,170
Total, net of deferred fees and costs	$	19,766	$	17,607	$	45,361	$	82,734	$	50,823	$	20,289,109	$	20,422,666

⁽¹⁾ Other includes purchased credit impaired loans of $134.5 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 $8.9 million at December 31, 2018.

Non-Covered Impaired Loans

The following tables summarize our impaired loans and leases by loan class as of September 30, 2019 and December 31, 2018:


(in thousands)	September 30, 2019
			Recorded Investment
	Unpaid Principal Balance		Without Allowance		With Allowance		Related Allowance
Commercial real estate
Non-owner occupied term, net	$	16,088	$	9,518	$	3,661	$	115
Owner occupied term, net	6,174		3,959		835		73



Commercial
Term, net	11,791		5,018		12		1
Lines of credit & other, net	971		858		—		—
Leases & equipment finance, net	1,808		—		1,808		9




Total, net of deferred fees and costs	$	36,832	$	19,353	$	6,316	$	198


(in thousands)	December 31, 2018
			Recorded Investment
	Unpaid Principal Balance		Without Allowance		With Allowance		Related Allowance
Commercial real estate
Non-owner occupied term, net	$	14,877	$	9,847	$	3,715	$	90
Owner occupied term, net	8,188		6,178		878		88
Multifamily, net	4,493		4,298		—		—


Commercial
Term, net	22,770		11,089		3,770		2
Lines of credit & other, net	7,145		2,065		—		—
Leases & equipment finance, net	417		417		—		—




Total, net of deferred fees and costs	$	57,890	$	33,894	$	8,363	$	180

The following tables summarize our average recorded investment and interest income recognized on impaired loans and leases by loan class for the three and nine months ended September 30, 2019 and 2018:


(in thousands)	Three Months Ended
	September 30, 2019						September 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate
Non-owner occupied term, net	$	12,901	$	34	$	13,475	$	33
Owner occupied term, net	5,439		10		9,551		10
Multifamily, net	—		—		4,072		—


Commercial
Term, net	5,258		47		14,244		51
Lines of credit & other, net	891		—		2,608		—
Leases & equipment finance, net	2,017		28		828		—










Total, net of deferred fees and costs	$	26,506	$	119	$	44,778	$	94


(in thousands)	Nine Months Ended
	September 30, 2019						September 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate
Non-owner occupied term, net	$	12,833	$	98	$	14,047	$	238
Owner occupied term, net	5,927		28		10,506		30
Multifamily, net	1,731		—		3,970		60


Commercial
Term, net	9,408		151		17,728		196
Lines of credit & other, net	1,333		—		3,667		—
Leases & equipment finance, net	1,855		57		450		—




Total, net of deferred fees and costs	$	33,087	$	334	$	50,368	$	524

The impaired loans for which these interest income amounts were recognized primarily relate to accruing restructured loans.

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, 2019 and December 31, 2018:


(in thousands)	September 30, 2019
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired ⁽¹⁾		Total
Commercial real estate
Non-owner occupied term, net	$	3,428,080	$	35,036	$	19,100	$	—	$	160	$	13,179	$	3,495,555
Owner occupied term, net	2,468,692		69,676		23,057		80		—		4,794		2,566,299
Multifamily, net	3,468,743		8,850		2,393		—		—		—		3,479,986
Construction & development, net	741,050		30,164		—		—		—		—		771,214
Residential development, net	191,500		—		—		—		—		—		191,500
Commercial
Term, net	2,269,473		10,752		25,498		2		4		5,030		2,310,759
Lines of credit & other, net	1,190,456		44,219		18,995		227		—		858		1,254,755
Leases & equipment finance, net	1,451,038		7,199		9,906		13,796		2,006		1,808		1,485,753
Residential
Mortgage, net ⁽²⁾	4,201,253		8,034		36,214		—		173		—		4,245,674
Home equity loans & lines, net	1,220,793		2,487		1,012		—		286		—		1,224,578
Consumer & other, net	490,608		3,288		796		—		29		—		494,721
Total, net of deferred fees and costs	$	21,121,686	$	219,705	$	136,971	$	14,105	$	2,658	$	25,669	$	21,520,794

⁽¹⁾The percentage of impaired loans classified as pass/watch, special mention and substandard was 3.3%, 13.6% and 83.1%, respectively, as of September 30, 2019.


(in thousands)	December 31, 2018
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired ⁽¹⁾		Total
Commercial real estate
Non-owner occupied term, net	$	3,497,801	$	38,346	$	23,234	$	—	$	122	$	13,562	$	3,573,065
Owner occupied term, net	2,422,351		28,447		22,136		54		327		7,056		2,480,371
Multifamily, net	3,284,445		11,481		4,539		—		—		4,298		3,304,763
Construction & development, net	734,318		—		1,936		—		—		—		736,254
Residential development, net	196,890		—		—		—		—		—		196,890
Commercial
Term, net	2,196,753		15,519		5,670		53		69		14,859		2,232,923
Lines of credit & other, net	1,103,677		42,831		20,639		313		—		2,065		1,169,525
Leases & equipment finance, net	1,296,235		8,571		8,754		14,247		1,931		417		1,330,155
Residential
Mortgage, net ⁽²⁾	3,588,976		5,169		38,766		—		2,162		—		3,635,073
Home equity loans & lines, net	1,172,040		1,878		1,418		—		1,141		—		1,176,477
Consumer & other, net	582,962		3,622		559		—		27		—		587,170
Total, net of deferred fees and costs	$	20,076,448	$	155,864	$	127,651	$	14,667	$	5,779	$	42,257	$	20,422,666

⁽¹⁾The percentage of impaired loans classified as pass/watch, special mention and substandard was 3.2%, 8.8% and 88.0%, respectively, as of December 31, 2018.

Schedule Of Troubled Debt Restructurings

The following tables present troubled debt restructurings by accrual versus non-accrual status and by loan class as of September 30, 2019 and December 31, 2018:


(in thousands)	September 30, 2019
	Accrual Status		Non-Accrual Status		Total Modifications
Commercial real estate, net	$	3,999	$	6,599	$	10,598
Commercial, net	5,308		93		5,401
Residential, net	5,002		—		5,002

Total, net of deferred fees and costs	$	14,309	$	6,692	$	21,001


(in thousands)	December 31, 2018
	Accrual Status		Non-Accrual Status		Total Modifications
Commercial real estate, net	$	4,524	$	9,290	$	13,814
Commercial, net	3,696		8,736		12,432
Residential, net	5,704		—		5,704

Total, net of deferred fees and costs	$	13,924	$	18,026	$	31,950

The Bank's policy is that loans placed on non-accrual will typically remain on non-accrual status until all principal and interest payments are brought current and the prospect for future payment in accordance with the loan agreement appears relatively certain. The Bank's policy generally refers to six months of payment performance as sufficient to warrant a return to accrual status.

There were no new restructured loans during the three months ended September 30, 2019 and September 30, 2018. The following tables present newly restructured loans that occurred during the nine months ended September 30, 2019 and September 30, 2018:


(in thousands)	Nine Months Ended
	September 30, 2019		September 30, 2018
Commercial real estate, net	$	118	$	—
Commercial, net	1,842		—
Residential, net	7		106

Total, net of deferred fees and costs	$	1,967	$	106