Operating Segments

12 Months Ended

Dec. 31, 2011

Operating Segments [Abstract]

Operating Segments

NOTE 26. OPERATING SEGMENTS

The Company operates three primary segments: Community Banking, Mortgage Banking and Wealth Management. The Community Banking segment's principal business focus is the offering of loan and deposit products to its business and retail customers in its primary market areas. As of December 31, 2011, the Community Banking segment operates 194 locations throughout Oregon, Northern California, Washington and Nevada.

The Mortgage Banking segment, which operates as a division of the Bank, originates, sells and services residential mortgage loans.

The Wealth Management segment consists of the operations of Umpqua Investments, which offers a full range of retail brokerage services and products to its clients who consist primarily of individual investors, and Umpqua Private Bank, which serves high net worth individuals with liquid investable assets and provides customized financial solutions and offerings, and Umpqua Financial Advisors. The Company accounts for intercompany fees and services between Umpqua Investments and the Bank at estimated fair value according to regulatory requirements for services provided. Intercompany items relate primarily to management services, referral fees and deposit rebates.

Prior to January 1, 2011, the Company reported Retail Brokerage, consisting of Umpqua Investments, as its own segment. Effective in 2011, the Company began reporting Umpqua Investments, Umpqua Private Bank, and Umpqua Financial Advisors under the Wealth Management segment. Umpqua Private Bank and Umpqua Financial Advisors do not meet the quantitative thresholds for reporting as separate segments and service the same customer base as Umpqua Investments. As a result of the change in reportable segment, prior periods have been adjusted in the financial information below.

Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:

Year Ended December 31, 2011

(in thousands)

	Community Banking		Wealth Management		Mortgage Banking		Consolidated
Interest income	$	474,167	$	13,362	$	14,224	$	501,753
Interest expense		68,751		2,067		2,483		73,301
Net interest income		405,416		11,295		11,741		428,452
Provision for non-covered loan and lease losses		46,220		—		—		46,220
Provision for covered loan and lease losses		16,141		—		—		16,141
Non-interest income		43,282		13,963		26,873		84,118
Non-interest expense		302,883		15,630		20,458		338,971
Income before provision for income taxes		83,454		9,628		18,156		111,238
Provision for income taxes		26,023		3,457		7,262		36,742
Net income		57,431		6,171		10,894		74,496
Dividends and undistributed earnings allocated to participating securities		356		—		—		356
Net earnings available to common shareholders	$	57,075	$	6,171	$	10,894	$	74,140
Total assets	$	11,086,493	$	53,044	$	423,818	$	11,563,355
Total loans (covered and non-covered)	$	6,171,368	$	38,810	$	300,371	$	6,510,549
Total deposits	$	8,830,353	$	390,992	$	15,345	$	9,236,690

Year Ended December 31, 2010

(in thousands)

	Community Banking			Wealth Management		Mortgage Banking		Consolidated
Interest income	$	466,054		$	9,978	$	12,564	$	488,596
Interest expense		89,622			1,435		2,755		93,812
Net interest income		376,432			8,543		9,809		394,784
Provision for non-covered loan and lease losses		113,668			—		—		113,668
Provision for covered loan and lease losses		5,151			—		—		5,151
Non-interest income		41,534			12,967		21,403		75,904
Non-interest expense		286,629			15,503		15,606		317,738
Income before (benefit from) provision for income taxes		12,518			6,007		15,606		34,131
(Benefit from) provision for income taxes		(2,342	)		1,905		6,242		5,805
Net income		14,860			4,102		9,364		28,326
Preferred stock dividends		12,192			—		—		12,192
Dividends and undistributed earnings allocated to participating securities		67			—		—		67
Net earnings available to common shareholders	$	2,601		$	4,102	$	9,364	$	16,067
Total assets	$	11,314,681		$	37,757	$	316,272	$	11,668,710
Total loans (covered and non-covered)	$	6,198,532		$	23,631	$	222,722	$	6,444,885
Total deposits	$	9,160,058		$	262,148	$	11,599	$	9,433,805

Year Ended December 31, 2009

(in thousands)

	Community Banking			Wealth Management			Mortgage Banking		Consolidated
Interest income	$	406,460		$	4,467		$	12,805	$	423,732
Interest expense		99,382			1			3,641		103,024
Net interest income		307,078			4,466			9,164		320,708
Provision for loan and lease losses		209,124			—			—		209,124
Non-interest income		45,280			9,344			18,892		73,516
Non-interest expense		352,290			12,910			14,203		379,403
(Loss) income before (benefit from) provision for income taxes		(209,056	)		900			13,853		(194,303	)
(Benefit from) provision for income taxes		(46,383	)		(95	)		5,541		(40,937	)
Net (loss) income		(162,673	)		995			8,312		(153,366	)
Preferred stock dividends		12,866			—			—		12,866
Dividends and undistributed earnings allocated to participating securities		30			—			—		30
Net (loss) earnings available to common shareholders	$	(175,569	)	$	995		$	8,312	$	(166,262	)
Total assets	$	9,109,542		$	31,196		$	240,634	$	9,381,372
Total loans (covered and non-covered)	$	5,789,730		$	17,484		$	192,053	$	5,999,267
Total deposits	$	7,432,549		$	98		$	7,787	$	7,440,434