Regulatory Capital

12 Months Ended

Dec. 31, 2023

Broker-Dealer [Abstract]

Regulatory Capital

Regulatory Capital

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company's operations and financial statements. Under capital adequacy guidelines, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classifications are also subject to qualitative judgments by the regulators about risk components, asset risk weighting, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital, and Tier 1 common to risk-weighted assets (as defined in the applicable regulations), and of Tier 1 capital to average assets (as defined in the applicable regulations). Basel III also requires banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. The capital conservation buffer is fully phased-in at 2.5%, such that the common equity Tier 1, Tier 1, and total capital ratio minimums inclusive of the capital conservation buffers were 7%, 8.5%, and 10.5%. Management believes, as of December 31, 2023, that the Company meets all capital adequacy requirements to which it is subject.

The following table shows the Company's consolidated and the Bank's capital adequacy ratios compared to the regulatory minimum capital ratio and the regulatory minimum capital ratio needed to qualify as a "well-capitalized" institution, as calculated under regulatory guidelines of Basel III as of December 31, 2023 and 2022:

	Actual				For Capital Adequacy Purposes				To be Well Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2023
Total Capital (to Risk Weighted Assets)
Consolidated	$	4,770,335	11.86	%	$	3,218,301	8.00	%	$	4,022,876	10.00	%
Umpqua Bank	$	4,653,920	11.57	%	$	3,217,821	8.00	%	$	4,022,276	10.00	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	3,876,985	9.64	%	$	2,413,726	6.00	%	$	3,218,301	8.00	%
Umpqua Bank	$	4,231,569	10.52	%	$	2,413,366	6.00	%	$	3,217,821	8.00	%
Tier 1 Common (to Risk Weighted Assets)
Consolidated	$	3,876,985	9.64	%	$	1,810,294	4.50	%	$	2,614,869	6.50	%
Umpqua Bank	$	4,231,569	10.52	%	$	1,810,024	4.50	%	$	2,614,479	6.50	%
Tier 1 Capital (to Average Assets)
Consolidated	$	3,876,985	7.60	%	$	2,040,344	4.00	%	$	2,550,431	5.00	%
Umpqua Bank	$	4,231,569	8.30	%	$	2,040,489	4.00	%	$	2,550,611	5.00	%
December 31, 2022
Total Capital (to Risk Weighted Assets)
Consolidated	$	3,651,382	13.71	%	$	2,130,565	8.00	%	$	2,663,207	10.00	%
Umpqua Bank	$	3,440,574	12.92	%	$	2,130,240	8.00	%	$	2,662,799	10.00	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	2,934,708	11.02	%	$	1,597,924	6.00	%	$	2,130,565	8.00	%
Umpqua Bank	$	3,174,899	11.92	%	$	1,597,680	6.00	%	$	2,130,240	8.00	%
Tier 1 Common (to Risk Weighted Assets)
Consolidated	$	2,934,708	11.02	%	$	1,198,443	4.50	%	$	1,731,084	6.50	%
Umpqua Bank	$	3,174,899	11.92	%	$	1,198,260	4.50	%	$	1,730,820	6.50	%
Tier 1 Capital (to Average Assets)
Consolidated	$	2,934,708	9.14	%	$	1,283,669	4.00	%	$	1,604,586	5.00	%
Umpqua Bank	$	3,174,899	9.89	%	$	1,283,610	4.00	%	$	1,604,513	5.00	%

In 2020, the federal bank regulatory authorities finalized a rule to provide banking organizations that implemented CECL in 2020 the option to delay the estimated impact on regulatory capital by up to two years, with a three-year transition period to phase out the cumulative benefit to regulatory capital provided during the two-year delay. The Company elected this capital relief to delay the estimated regulatory capital impact of adopting CECL, relative to the incurred loss methodology's effect on regulatory capital. Currently, the Company is phasing out the cumulative adjustment as calculated at the end of 2021, by adjusting it by 75% through 2022, 50% in 2023, and 25% in 2024.