PORTLAND, Ore., Jan. 22, 2020 /PRNewswire/ — Umpqua Holdings Corporation (NASDAQ: UMPQ) (the «Company») reported net income of $83.8 million for the fourth quarter of 2019, compared to $84.5 million for the third quarter of 2019 and $80.3 million for the fourth quarter of 2018.  Earnings per diluted common share were $0.38 for the fourth quarter of 2019, compared to $0.38 for the third quarter of 2019 and $0.36 for the fourth quarter of 2018.

(PRNewsfoto/Umpqua Holdings Corporation)

For the twelve months ended December 31, 2019, the Company reported net income of $354.1 million, or $1.60 per diluted common share, up from $316.3 million, or $1.43 per diluted common share, for the twelve months ended December 31, 2018.

«I am very pleased with the continued progress we made in 2019 on executing against our ambitious Next Gen goals,» said Cort O’Haver, president and CEO of Umpqua Holdings Corporation.  «Annual loan and lease growth of $773 million in addition to deposit growth of $1.3 billion shows our emphasis on balanced growth has been effective.  We took the opportunity to reposition a portion of the balance sheet in the fourth quarter by selling loans with lower yields while reducing higher cost time deposits.  We will continue to focus on balanced growth, executing on our expense initiatives and investing in strategic digital initiatives in 2020, which will drive sustained profitability and long-term shareholder value.» 

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

  • $10.4 million loss on the fair value of the MSR asset, compared to the net $4.2 million gain in the prior quarter and the $13.1 million loss in the same period of the prior year.
  • $5.0 million gain on the fair value of the debt capital market swap derivatives attributable to the increase in long-term interest rates during the quarter.  This compares to the $4.6 million loss in the prior quarter and the$3.0 million loss in the same period of the prior year.
  • $1.9 million of exit or disposal costs, related primarily to planned store consolidations, compared to $2.0 million in the prior quarter and $0.8 million in the same period of the prior year.

Full-Year 2019 Highlights (compared to prior year):

  • Gross loan and lease growth of $773.0 million, or 4%;
  • Deposit growth of $1.3 billion, or 6%;
  • Net interest income decreased by $18.0 million, driven primarily by a decrease in short and long-term interest rates during the annual period which led to a decline in net interest margin, partially offset by an increase in loans and leases;
  • Provision for loan and lease losses increased by $16.6 million primarily due to loan and lease growth and a slightly higher net charge-off ratio;
  • Non-interest income increased by $60.4 million, driven primarily by the $76.3 million net gain recorded from the sale of the Visa Class B stock and other debt securities, partially offset by a reduction in net residential mortgage banking revenue;
  • Non-interest expense decreased by $20.4 million, driven primarily by lower salaries and benefits expense, lower occupancy and equipment expense, lower professional fees, and lower FDIC assessment expense, partially offset by a higher loss on other real estate owned (OREO); 
  • Paid dividends of $0.84 per common share (versus $0.82 per share in the prior year) and repurchased 300,000 shares of common stock; and
  • Book value increased by 6%, or $1.17 per common share, and tangible book value1 increased by 12%, or $1.20 per common share.

Fourth Quarter 2019 Highlights (compared to prior quarter):

  • Gross loan and lease balance diminishment of $325.1 million, or 2%, partially due to $117.9 million in non-SBA loan sales closed during the quarter.  Average loan and lease balances increased $208.3 million, or 1%, compared to the prior quarter;
  • Deposit growth of $46.8 million;
  • Net interest income decreased by $2.2 million, attributable to a lower average yield on loans and leases,  partially offset by lower funding costs;
  • Provision for loan and lease losses decreased by $7.0 million, driven by lower net charge offs of $14.9 million during the quarter compared to $18.0 million in the prior quarter;
  • Non-interest income decreased by $4.8 million reflecting the linked quarter decline in the fair value of the MSR asset, partially offset by the linked quarter increase in the fair value of debt capital market swap derivatives;
  • Non-interest expense decreased by $0.1 million, driven by lower state and local business taxes, lower marketing expense, and a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense;
  • Non-performing assets to total assets decreased by two basis points to 0.23%;
  • Estimated total risk-based capital ratio of 13.9% and estimated Tier 1 common to risk weighted assets ratio of 11.2%; and
  • Declared quarterly cash dividend of $0.21 per common share.

Balance Sheet

Total consolidated assets were $28.8 billion as of December 31, 2019, compared to $28.9 billion as of September 30, 2019 and $26.9 billion as of December 31, 2018.  Including secured off-balance sheet lines of credit, total available liquidity was $11.4 billion as of December 31, 2019, representing 40% of total assets and 51% of total deposits.

Gross loans and leases were $21.2 billion as of December 31, 2019, a decrease of $0.3 billion from $21.5 billion as of September 30, 2019.  This decrease reflects non-SBA loan sales of $117.9 million consistent with management plans to reposition a portion of the balance sheet by reducing lower yielding loans and leases while also reducing higher cost time deposits. 

Total deposits were $22.5 billion as of December 31, 2019, an increase of $46.8 million from $22.4 billion as of September 30, 2019.  This increase was primarily attributable to growth in money market and interest bearing demand accounts, partially offset by a seasonal decline in non-interest demand deposits.

Net Interest Income

Net interest income was $226.8 million for the fourth quarter of 2019, down $2.2 million from the prior quarter.  This decrease was driven primarily by lower average yields on earnings assets, partially offset by lower funding costs and a higher average balance of loans and leases.

The Company’s net interest margin was 3.51% for the fourth quarter of 2019, down 12 basis points from 3.63% for the third quarter of 2019.  This decrease was driven primarily by the lower average yields on loans and leases, partially offset by lower funding costs and lower bond premium amortization.

Credit Quality

The allowance for loan and lease losses was $157.6 million, or 0.74% of loans and leases, as of December 31, 2019.  The provision for loan and lease losses was $16.3 million for the fourth quarter of 2019, a decrease of $7.0 million from the prior quarter level driven primarily lower net charge-offs.  Net charge-offs decreased by 6 basis points from the prior quarter to 0.28% of average loans and leases for the fourth quarter of 2019 (annualized).  As of December 31, 2019, non-performing assets decreased to 0.23% of total assets, from 0.25% as of September 30, 2019 and 0.36% as of  December 31, 2018.

Non-interest Income

Non-interest income was $83.7 million for the fourth quarter of 2019, down $4.8 million from the prior quarter.  This decrease reflects the decline in fair value for the MSR asset, partially offset by the gain on the debt capital market swap derivatives (see notable items above) and the $4.6 million gain related to the sale of loans recorded in the period compared to $1.8 million recorded in the third quarter of 2019.

Net revenue from the origination and sale of residential mortgages was $35.4 million for the fourth quarter of 2019, up $4.0 million from the prior quarter.  For-sale mortgage origination volume increased by 26% from the prior quarter, while the home lending gain on sale margin decreased to 3.34% for the fourth quarter of 2019.  Of the current quarter’s mortgage production, 55% related to purchase activity, compared to 60% for the prior quarter and 80% for the same period in the prior year.

Non-interest Expense

Non-interest expense was $183.4 million for the fourth quarter of 2019, down $0.1 million from the prior quarter level.  This decrease was attributable to lower state and local business taxes, lower marketing expense, a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense.

Capital

As of December 31, 2019, the Company’s book value per common share increased to $19.59 from $19.48 in the prior quarter, and its tangible book value per common share1 increased to $11.39 from $11.27 in the prior quarter.  During the fourth quarter of 2019, the Company declared a dividend of $0.21 per share.

The Company’s estimated total risk-based capital ratio was 13.9% and its estimated Tier 1 common equity to risk weighted assets ratio was 11.2% as of December 31, 2019.  The Company remains above current «well-capitalized» regulatory minimums.  The regulatory capital ratios as of December 31, 2019 are estimates, pending completion and filing of the Company’s regulatory reports.

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).

(Dollars in thousands, except per share data)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

Total shareholders’ equity

$

4,313,915

$

4,289,516

$

4,228,507

$

4,112,326

$

4,056,442

Subtract:

Goodwill

1,787,651

1,787,651

1,787,651

1,787,651

1,787,651

Other intangible assets, net

18,346

19,750

21,155

22,560

23,964

Tangible common shareholders’ equity

$

2,507,918

$

2,482,115

$

2,419,701

$

2,302,115

$

2,244,827

Total assets

$

28,846,809

$

28,930,855

$

27,986,075

$

27,355,625

$

26,939,781

Subtract:

Goodwill

1,787,651

1,787,651

1,787,651

1,787,651

1,787,651

Other intangible assets, net

18,346

19,750

21,155

22,560

23,964

Tangible assets

$

27,040,812

$

27,123,454

$

26,177,269

$

25,545,414

$

25,128,166

Common shares outstanding at period end

220,229

220,212

220,499

220,457

220,255

Total shareholders’ equity to total assets ratio

14.95

%

14.83

%

15.11

%

15.03

%

15.06

%

Tangible common equity ratio

9.27

%

9.15

%

9.24

%

9.01

%

8.93

%

Book value per common share

$

19.59

$

19.48

$

19.18

$

18.65

$

18.42

Tangible book value per common share

$

11.39

$

11.27

$

10.97

$

10.44

$

10.19

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 www.umpquabank.com.

Earnings Conference Call Information

The Company will host its fourth quarter 2019 earnings conference call on Thursday, January 23, 2020, 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 fourth quarter and full year 2019 financial results.  There will be a live question-and-answer session following the presentation.  To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 9756638.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 9756638.  The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at www.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 the projected impact of strategic investments. 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; 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 Holdings Corporation

Consolidated Statements of Income

(Unaudited)

Quarter Ended

% Change

(In thousands, except per share data)

Dec 31,
2019

Sep 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Seq. 
Quarter

Year over
Year

Interest income:

Loans and leases

$

262,109

$

266,111

$

264,110

$

258,747

$

254,093

(2)

%

3

%

Interest and dividends on investments:

Taxable

13,361

12,546

10,287

19,956

27,381

6

%

(51)

%

Exempt from federal income tax

1,638

1,727

1,921

2,114

2,135

(5)

%

(23)

%

Dividends

579

599

574

517

538

(3)

%

8

%

Temporary investments and interest bearing deposits

4,343

4,204

4,708

925

2,621

3

%

66

%

Total interest income

282,030

285,187

281,600

282,259

286,768

(1)

%

(2)

%

Interest expense:

Deposits

44,380

45,876

43,591

34,094

30,124

(3)

%

47

%

Securities sold under agreement to repurchase and federal funds purchased

431

448

403

810

185

(4)

%

133

%

Borrowings

5,080

4,238

4,563

3,683

3,326

20

%

53

%

Junior subordinated debentures

5,325

5,652

5,881

5,987

5,743

(6)

%

(7)

%

Total interest expense

55,216

56,214

54,438

44,574

39,378

(2)

%

40

%

Net interest income

226,814

228,973

227,162

237,685

247,390

(1)

%

(8)

%

Provision for loan and lease losses

16,252

23,227

19,352

13,684

17,219

(30)

%

(6)

%

Non-interest income:

Service charges on deposits

16,656

16,627

15,953

15,278

16,035

0

%

4

%

Brokerage revenue

4,027

4,060

3,980

3,810

4,178

(1)

%

(4)

%

Residential mortgage banking revenue, net

34,050

47,000

9,529

11,231

15,150

(28)

%

125

%

Gain (loss) on sale of debt securities, net

2

(7,186)

nm

nm

(Loss) gain on equity securities, net

(84)

257

82,607

695

410

(133)

%

(120)

%

Gain on loan and lease sales, net

4,603

1,762

3,333

769

2,484

161

%

85

%

BOLI income

2,078

2,067

2,093

2,168

2,116

1

%

(2)

%

Other income

22,417

16,739

11,514

11,789

16,438

34

%

36

%

Total non-interest income

83,749

88,512

121,823

45,740

56,811

(5)

%

47

%

Non-interest expense:

Salaries and employee benefits

108,847

106,819

104,049

100,658

102,109

2

%

7

%

Occupancy and equipment, net

36,513

35,446

36,032

36,245

35,949

3

%

2

%

Intangible amortization

1,404

1,405

1,405

1,404

1,542

0

%

(9)

%

FDIC assessments

2,867

2,587

2,837

2,942

2,619

11

%

9

%

Loss (gain) on other real estate owned, net

48

1,188

2,678

(51)

1,125

(96)

%

(96)

%

Other expenses

33,764

36,145

33,414

30,394

35,144

(7)

%

(4)

%

Total non-interest expense

183,443

183,590

180,415

171,592

178,488

0

%

3

%

Income before provision for income taxes

110,868

110,668

149,218

98,149

108,494

0

%

2

%

Provision for income taxes

27,118

26,166

37,408

24,116

28,183

4

%

(4)

%

Net income

$

83,750

$

84,502

$

111,810

$

74,033

$

80,311

(1)

%

4

%

Weighted average basic shares outstanding

220,222

220,285

220,487

220,366

220,247

0

%

0

%

Weighted average diluted shares outstanding

220,671

220,583

220,719

220,655

220,668

0

%

0

%

Earnings per common share – basic

$

0.38

$

0.38

$

0.51

$

0.34

$

0.36

0

%

6

%

Earnings per common share – diluted

$

0.38

$

0.38

$

0.51

$

0.34

$

0.36

0

%

6

%

nm = not meaningful

 

Umpqua Holdings Corporation

Consolidated Statements of Income

(Unaudited)

Year Ended

% Change

(In thousands, except per share data)

Dec 31, 2019

Dec 31, 2018

Year over Year

Interest income:

Loans and leases

$

1,051,077

$

972,114

8

%

Interest and dividends on investments:

Taxable

56,150

76,014

(26)

%

Exempt from federal income tax

7,400

8,368

(12)

%

Dividends

2,269

1,988

14

%

Temporary investments and interest bearing deposits

14,180

8,665

64

%

Total interest income

1,131,076

1,067,149

6

%

Interest expense:

Deposits

167,941

92,685

81

%

Securities sold under agreement to repurchase and federal funds purchased

2,092

506

313

%

Borrowings

17,564

13,604

29

%

Junior subordinated debentures

22,845

21,715

5

%

Total interest expense

210,442

128,510

64

%

Net interest income

920,634

938,639

(2)

%

Provision for loan and lease losses

72,515

55,905

30

%

Non-interest income:

Service charges on deposits

64,514

62,124

4

%

Brokerage revenue

15,877

16,480

(4)

%

Residential mortgage banking revenue, net

101,810

118,235

(14)

%

(Loss) gain on sale of debt securities, net

(7,184)

14

nm

Gain (loss) on equity securities, net

83,475

(1,484)

nm

Gain on loan and lease sales, net

10,467

7,834

34

%

BOLI income

8,406

8,297

1

%

Other income

62,459

67,917

(8)

%

Total non-interest income

339,824

279,417

22

%

Non-interest expense:

Salaries and employee benefits

420,373

425,575

(1)

%

Occupancy and equipment, net

144,236

148,724

(3)

%

Intangible amortization

5,618

6,166

(9)

%

FDIC assessments

11,233

16,094

(30)

%

Loss on other real estate owned, net

3,863

867

346

%

Other expenses

133,717

142,039

(6)

%

Total non-interest expense

719,040

739,465

(3)

%

Income before provision for income taxes

468,903

422,686

11

%

Provision for income taxes

114,808

106,423

8

%

Net income

$

354,095

$

316,263

12

%

Weighted average basic shares outstanding

220,339

220,280

0

%

Weighted average diluted shares outstanding

220,650

220,737

0

%

Earnings per common share – basic

$

1.61

$

1.44

12

%

Earnings per common share – diluted

$

1.60

$

1.43

12

%

nm = not meaningful

 

Umpqua Holdings Corporation
Consolidated Balance Sheets

(Unaudited)

% Change

(In thousands, except per share data)

Dec 31,
2019

Sep 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Seq. 
Quarter

Year over
Year

Assets:

Cash and due from banks

$

382,598

$

433,620

$

342,508

$

296,967

$

335,419

(12)

%

14

%

Interest bearing cash and temporary investments

980,158

757,824

691,283

605,841

287,218

29

%

241

%

Investment securities:

Equity and other, at fair value

80,165

64,764

66,358

63,327

61,841

24

%

30

%

Available for sale, at fair value

2,814,682

2,842,076

2,698,398

2,894,778

2,977,108

(1)

%

(5)

%

Held to maturity, at amortized cost

3,260

3,320

3,416

3,478

3,606

(2)

%

(10)

%

Loans held for sale, at fair value

513,431

355,022

356,645

240,302

166,461

45

%

208

%

Loans and leases

21,195,684

21,520,794

20,953,371

20,405,997

20,422,666

(2)

%

4

%

Allowance for loan and lease losses

(157,629)

(156,288)

(151,069)

(144,872)

(144,871)

1

%

9

%

Net loans and leases

21,038,055

21,364,506

20,802,302

20,261,125

20,277,795

(2)

%

4

%

Restricted equity securities

46,463

54,463

43,063

47,466

40,268

(15)

%

15

%

Premises and equipment, net

201,460

203,391

210,285

217,595

227,423

(1)

%

(11)

%

Operating lease right-of-use assets

110,718

108,187

112,752

109,807

2

%

nm

Goodwill

1,787,651

1,787,651

1,787,651

1,787,651

1,787,651

0

%

0

%

Other intangible assets, net

18,346

19,750

21,155

22,560

23,964

(7)

%

(23)

%

Residential mortgage servicing rights, at fair value

115,010

151,383

139,780

158,946

169,025

(24)

%

(32)

%

Bank owned life insurance

320,611

318,533

316,435

314,303

313,626

1

%

2

%

Other assets

434,201

466,365

394,044

331,479

268,376

(7)

%

62

%

Total assets

$

28,846,809

$

28,930,855

$

27,986,075

$

27,355,625

$

26,939,781

0

%

7

%

Liabilities:

Deposits

$

22,481,504

$

22,434,734

$

21,819,013

$

21,243,894

$

21,137,486

0

%

6

%

Securities sold under agreements to repurchase

311,308

296,717

308,052

288,944

297,151

5

%

5

%

Borrowings

906,635

1,106,674

821,712

932,420

751,788

(18)

%

21

%

Junior subordinated debentures, at fair value

274,812

267,798

277,028

294,121

300,870

3

%

(9)

%

Junior subordinated debentures, at amortized cost

88,496

88,553

88,610

88,667

88,724

0

%

0

%

Operating lease liabilities

119,429

116,924

121,742

118,520

2

%

nm

Deferred tax liability, net

52,928

67,055

57,757

45,202

25,846

(21)

%

105

%

Other liabilities

297,782

262,884

263,654

231,531

281,474

13

%

6

%

Total liabilities

24,532,894

24,641,339

23,757,568

23,243,299

22,883,339

0

%

7

%

Shareholders’ equity:

Common stock

3,514,000

3,511,493

3,514,391

3,511,731

3,512,874

0

%

0

%

Retained earnings

770,366

733,059

695,003

629,877

602,482

5

%

28

%

Accumulated other comprehensive income (loss)

29,549

44,964

19,113

(29,282)

(58,914)

(34)

%

(150)

%

Total shareholders’ equity

4,313,915

4,289,516

4,228,507

4,112,326

4,056,442

1

%

6

%

Total liabilities and shareholders’ equity

$

28,846,809

$

28,930,855

$

27,986,075

$

27,355,625

$

26,939,781

0

%

7

%

Common shares outstanding at period end

220,229

220,212

220,499

220,457

220,255

0

%

0

%

Book value per common share

$

19.59

$

19.48

$

19.18

$

18.65

$

18.42

1

%

6

%

Tangible book value per common share

$

11.39

$

11.27

$

10.97

$

10.44

$

10.19

1

%

12

%

Tangible equity – common

$

2,507,918

$

2,482,115

$

2,419,701

$

2,302,115

$

2,244,827

1

%

12

%

Tangible common equity to tangible assets

9.27

%

9.15

%

9.24

%

9.01

%

8.93

%

0.12

0.34

 

Umpqua Holdings Corporation

Loan & Lease Portfolio

(Unaudited)

(Dollars in thousands)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

% Change

Amount

Amount

Amount

Amount

Amount

Seq. Quarter

Year
over
Year

Loans and leases:

Commercial real estate:

Non-owner occupied term, net

$

3,545,566

$

3,495,555

$

3,537,084

$

3,476,972

$

3,573,065

1

%

(1)

%

Owner occupied term, net

2,496,088

2,566,299

2,396,674

2,449,648

2,480,371

(3)

%

1

%

Multifamily, net

3,514,774

3,479,986

3,341,547

3,302,936

3,304,763

1

%

6

%

Construction & development, net

678,740

771,214

732,932

686,107

736,254

(12)

%

(8)

%

Residential development, net

189,010

191,500

199,421

205,963

196,890

(1)

%

(4)

%

Commercial:

Term, net

2,232,817

2,310,759

2,271,346

2,185,322

2,232,923

(3)

%

0

%

Lines of credit & other, net

1,212,393

1,254,755

1,280,587

1,229,092

1,169,525

(3)

%

4

%

Leases & equipment finance, net

1,465,489

1,485,753

1,449,579

1,378,686

1,330,155

(1)

%

10

%

Residential real estate:

Mortgage, net

4,215,424

4,245,674

3,995,643

3,768,955

3,635,073

(1)

%

16

%

Home equity loans & lines, net

1,237,512

1,224,578

1,215,215

1,170,252

1,176,477

1

%

5

%

   Consumer & other, net

407,871

494,721

533,343

552,064

587,170

(18)

%

(31)

%

Total loans, net of deferred fees and costs

$

21,195,684

$

21,520,794

$

20,953,371

$

20,405,997

$

20,422,666

(2)

%

4

%

Loan and leases mix:

Commercial real estate:

   Non-owner occupied term, net

17

%

16

%

17

%

17

%

17

%

   Owner occupied term, net

12

%

12

%

11

%

12

%

12

%

   Multifamily, net

16

%

16

%

16

%

16

%

16

%

Construction & development, net

3

%

4

%

3

%

3

%

4

%

Residential development, net

1

%

1

%

1

%

1

%

1

%

Commercial:

Term, net

10

%

11

%

11

%

11

%

11

%

Lines of credit & other, net

6

%

6

%

6

%

6

%

6

%

Leases & equipment finance, net

7

%

7

%

7

%

7

%

6

%

Residential real estate:

Mortgage, net

20

%

20

%

19

%

18

%

18

%

Home equity loans & lines, net

6

%

5

%

6

%

6

%

6

%

   Consumer & other, net

2

%

2

%

3

%

3

%

3

%

    Total

100

%

100

%

100

%

100

%

100

%

 

Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)

(Dollars in thousands)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

% Change

Amount

Amount

Amount

Amount

Amount

Seq. Quarter

Year over Year

Deposits:

Demand, non-interest bearing

$

6,913,375

$

7,123,180

$

6,771,087

$

6,495,562

$

6,667,467

(3)

%

4

%

Demand, interest bearing

2,524,534

2,406,404

2,355,473

2,341,441

2,340,471

5

%

8

%

Money market

6,930,815

6,646,383

6,789,036

6,469,286

6,645,390

4

%

4

%

Savings

1,471,475

1,469,302

1,446,332

1,479,509

1,492,685

0

%

(1)

%

Time

4,641,305

4,789,465

4,457,085

4,458,096

3,991,473

(3)

%

16

%

Total

$

22,481,504

$

22,434,734

$

21,819,013

$

21,243,894

$

21,137,486

0

%

6

%

Total core deposits (1)

$

19,061,058

$

18,845,328

$

18,529,797

$

17,903,754

$

18,190,402

1

%

5

%

Deposit mix:

Demand, non-interest bearing

31

%

32

%

31

%

31

%

32

%

Demand, interest bearing

11

%

11

%

11

%

11

%

11

%

Money market

31

%

30

%

31

%

30

%

31

%

Savings

6

%

6

%

7

%

7

%

7

%

Time

21

%

21

%

20

%

21

%

19

%

Total

100

%

100

%

100

%

100

%

100

%

Number of open accounts:

Demand, non-interest bearing

415,254

413,633

409,235

406,039

406,240

Demand, interest bearing

75,900

76,390

76,686

76,712

77,099

Money market

58,888

58,796

58,158

56,602

56,196

Savings

159,948

160,673

160,708

161,039

161,656

Time

62,952

62,122

60,571

58,210

54,388

Total

772,942

771,614

765,358

758,602

755,579

Average balance per account:

Demand, non-interest bearing

$

16.6

$

17.2

$

16.5

$

16.0

$

16.4

Demand, interest bearing

33.3

31.5

30.7

30.5

30.4

Money market

117.7

113.0

116.7

114.3

118.3

Savings

9.2

9.1

9.0

9.2

9.2

Time

73.7

77.1

73.6

76.6

73.4

Total

$

29.1

$

29.1

$

28.5

$

28.0

$

28.0

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

 

Umpqua Holdings Corporation

Credit Quality – Non-performing Assets

 (Unaudited)

Quarter Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

Seq. Quarter

Year over Year

Non-performing assets:

Loans and leases on non-accrual status

$

26,244

$

31,636

$

35,022

$

44,586

$

50,823

(17)

%

(48)

%

Loans and leases past due 90+ days and accruing (1)

37,969

35,745

35,700

31,424

36,444

6

%

4

%

Total non-performing loans and leases

64,213

67,381

70,722

76,010

87,267

(5)

%

(26)

%

Other real estate owned

3,295

4,026

8,423

10,488

10,958

(18)

%

(70)

%

Total non-performing assets

$

67,508

$

71,407

$

79,145

$

86,498

$

98,225

(5)

%

(31)

%

Performing restructured loans and leases

$

18,576

$

14,309

$

15,267

$

15,726

$

13,924

30

%

33

%

Loans and leases past due 31-89 days

$

41,882

$

44,390

$

40,619

$

53,009

$

37,373

(6)

%

12

%

Loans and leases past due 31-89 days to total loans and leases

0.20

%

0.21

%

0.19

%

0.26

%

0.18

%

Non-performing loans and leases to total loans and leases (1)

0.30

%

0.31

%

0.34

%

0.37

%

0.43

%

Non-performing assets to total assets (1)

0.23

%

0.25

%

0.28

%

0.32

%

0.36

%

(1)

Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $4.3 million, $5.2 million, $5.4 million, $158,000, and $8.9 million at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Loan and Lease Losses

 (Unaudited)

Quarter Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

Seq. Quarter

Year over Year

Allowance for loan and lease losses:

Balance beginning of period

$

156,288

$

151,069

$

144,872

$

144,871

$

144,026

Provision for loan and lease losses

16,252

23,227

19,352

13,684

17,219

(30)

%

(6)

%

Charge-offs

(18,734)

(23,112)

(16,707)

(17,152)

(19,527)

(19)

%

(4)

%

Recoveries

3,823

5,104

3,552

3,469

3,153

(25)

%

21

%

Net charge-offs

(14,911)

(18,008)

(13,155)

(13,683)

(16,374)

(17)

%

(9)

%

Total allowance for loan and lease losses

157,629

156,288

151,069

144,872

144,871

1

%

9

%

Reserve for unfunded commitments

5,106

5,085

4,857

4,654

4,523

0

%

13

%

Total allowance for credit losses

$

162,735

$

161,373

$

155,926

$

149,526

$

149,394

1

%

9

%

Net charge-offs to average loans and leases (annualized)

0.28

%

0.34

%

0.26

%

0.27

%

0.32

%

Recoveries to gross charge-offs

20.41

%

22.08

%

21.26

%

20.23

%

16.15

%

Allowance for loan and lease losses to loans and leases

0.74

%

0.73

%

0.72

%

0.71

%

0.71

%

Allowance for credit losses to loans and leases

0.77

%

0.75

%

0.74

%

0.73

%

0.73

%

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Loan and Lease Losses

(Unaudited)

Year Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Dec 31, 2018

Year over Year

Allowance for credit losses:

Balance beginning of period

$

144,871

$

140,608

Provision for loan and lease losses

72,515

55,905

30

%

Charge-offs

(75,705)

(66,050)

15

%

Recoveries

15,948

14,408

11

%

Net charge-offs

(59,757)

(51,642)

16

%

Total allowance for loan and lease losses

157,629

144,871

9

%

Reserve for unfunded commitments

5,106

4,523

13

%

Total allowance for credit losses

$

162,735

$

149,394

9

%

Net charge-offs to average loans and leases

0.29

%

0.26

%

Recoveries to gross charge-offs

21.07

%

21.81

%

 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)

Quarter Ended

% Change

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

Seq. Quarter

Year
over
Year

Average Rates:

Yield on loans held for sale

4.25

%

4.82

%

5.03

%

5.95

%

5.81

%

(0.57)

(1.56)

Yield on loans and leases

4.80

%

4.93

%

5.07

%

5.06

%

4.97

%

(0.13)

(0.17)

Yield on taxable investments

2.05

%

1.99

%

1.62

%

2.96

%

4.11

%

0.06

(2.06)

Yield on tax-exempt investments (1)

3.23

%

3.30

%

3.42

%

3.59

%

3.70

%

(0.07)

(0.47)

Yield on interest bearing cash and temporary investments

1.65

%

2.20

%

2.41

%

2.44

%

2.25

%

(0.55)

(0.60)

Total yield on earning assets (1)

4.36

%

4.52

%

4.59

%

4.79

%

4.81

%

(0.16)

(0.45)

Cost of interest bearing deposits

1.13

%

1.19

%

1.16

%

0.97

%

0.85

%

(0.06)

0.28

Cost of securities sold under agreements

to repurchase and fed funds purchased

0.56

%

0.57

%

0.55

%

0.88

%

0.26

%

(0.01)

0.30

Cost of borrowings

1.96

%

1.95

%

2.03

%

1.88

%

1.75

%

0.01

0.21

Cost of junior subordinated debentures

5.92

%

6.14

%

6.17

%

6.24

%

6.13

%

(0.22)

(0.21)

Total cost of interest bearing liabilities

1.27

%

1.33

%

1.31

%

1.14

%

1.00

%

(0.06)

0.27

Net interest spread (1)

3.09

%

3.19

%

3.28

%

3.65

%

3.81

%

(0.10)

(0.72)

Net interest margin (1)

3.51

%

3.63

%

3.70

%

4.03

%

4.15

%

(0.12)

(0.64)

Performance Ratios:

Return on average assets

1.15

%

1.18

%

1.62

%

1.12

%

1.19

%

(0.03)

(0.04)

Return on average tangible assets

1.22

%

1.26

%

1.73

%

1.20

%

1.28

%

(0.04)

(0.06)

Return on average common equity

7.70

%

7.87

%

10.80

%

7.34

%

7.90

%

(0.17)

(0.20)

Return on average tangible common equity

13.24

%

13.67

%

19.14

%

13.17

%

14.34

%

(0.43)

(1.10)

Efficiency ratio – Consolidated

59.00

%

57.76

%

51.64

%

60.44

%

58.58

%

1.24

0.42

Efficiency ratio – Bank

57.56

%

56.22

%

50.16

%

58.57

%

57.67

%

1.34

(0.11)

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

 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)

Year Ended

% Change

Dec 31, 2019

Dec 31, 2018

Year over Year

Average Rates:

Yield on loans held for sale

4.83

%

5.02

%

(0.19)

Yield on loans and leases

4.96

%

4.90

%

0.06

Yield on taxable investments

2.16

%

2.86

%

(0.70)

Yield on tax-exempt investments (1)

3.40

%

3.66

%

(0.26)

Yield on temporary investments and interest bearing cash

2.06

%

1.94

%

0.12

Total yield on earning assets (1)

4.56

%

4.59

%

(0.03)

Cost of interest bearing deposits

1.12

%

0.67

%

0.45

Cost of securities sold under agreements

to repurchase and fed funds purchased

0.65

%

0.18

%

0.47

Cost of borrowings

1.96

%

1.73

%

0.23

Cost of junior subordinated debentures

6.12

%

5.86

%

0.26

Total cost of interest bearing liabilities

1.26

%

0.84

%

0.42

Net interest spread (1)

3.30

%

3.75

%

(0.45)

Net interest margin (1)

3.71

%

4.04

%

(0.33)

Performance Ratios:

Return on average assets

1.27

%

1.21

%

0.06

Return on average tangible assets

1.35

%

1.30

%

0.05

Return on average common equity

8.42

%

7.90

%

0.52

Return on average tangible common equity

14.77

%

14.45

%

0.32

Efficiency ratio – Consolidated

56.97

%

60.61

%

(3.64)

Efficiency ratio – Bank

55.40

%

58.60

%

(3.20)

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

 

Umpqua Holdings Corporation
Average Balances

(Unaudited)

Quarter Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

Seq. Quarter

Year over Year

Temporary investments and interest bearing cash

$

1,045,975

$

759,416

$

783,703

$

153,347

$

462,621

38

%

126

%

Investment securities, taxable

2,719,089

2,648,092

2,683,472

2,757,644

2,716,616

3

%

0

%

Investment securities, tax-exempt

244,895

252,765

271,633

287,366

282,998

(3)

%

(13)

%

Loans held for sale

415,169

328,155

264,445

187,656

238,958

27

%

74

%

Loans and leases

21,379,239

21,170,915

20,605,963

20,388,988

20,051,674

1

%

7

%

Total interest earning assets

25,804,367

25,159,343

24,609,216

23,775,001

23,752,867

3

%

9

%

Goodwill and other intangible assets, net

1,806,791

1,808,191

1,809,583

1,811,007

1,812,487

0

%

0

%

Total assets

28,981,387

28,356,982

27,709,310

26,811,621

26,672,224

2

%

9

%

Non-interest bearing demand deposits

7,037,320

6,880,093

6,556,090

6,505,615

6,828,730

2

%

3

%

Interest bearing deposits

15,550,483

15,289,464

15,069,198

14,304,325

14,138,852

2

%

10

%

Total deposits

22,587,803

22,169,557

21,625,288

20,809,940

20,967,582

2

%

8

%

Interest bearing liabilities

17,237,770

16,827,917

16,646,949

15,858,561

15,547,250

2

%

11

%

Shareholders’ equity – common

4,317,277

4,260,810

4,153,175

4,091,174

4,035,125

1

%

7

%

Tangible common equity (1)

2,510,486

2,452,619

2,343,592

2,280,167

2,222,638

2

%

13

%

 

Umpqua Holdings Corporation
Average Balances

(Unaudited)

Year Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Dec 31, 2018

Year over Year

Temporary investments and interest bearing cash

$

688,258

$

446,500

54

%

Investment securities, taxable

2,701,821

2,729,950

(1)

%

Investment securities, tax-exempt

264,017

281,906

(6)

%

Loans held for sale

299,560

288,288

4

%

Loans and leases

20,889,769

19,562,369

7

%

Total interest earning assets

24,843,425

23,309,013

7

%

Goodwill and other intangible assets, net

1,808,879

1,814,756

0

%

Total assets

27,971,844

26,210,933

7

%

Non-interest bearing demand deposits

6,746,607

6,699,112

1

%

Interest bearing deposits

15,057,428

13,820,497

9

%

Total deposits

21,804,035

20,519,609

6

%

Interest bearing liabilities

16,647,085

15,264,375

9

%

Shareholders’ equity – common

4,206,380

4,002,700

5

%

Tangible common equity (1)

2,397,501

2,187,944

10

%

(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 Holdings Corporation
Average Rates and Balances

(Unaudited)

(dollars in thousands)

Quarter Ended

December 31, 2019

September 30, 2019

December 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

$

415,169

$

4,408

4.25

%

$

328,155

$

3,953

4.82

%

$

238,958

$

3,473

5.81

%

Loans and leases (1)

21,379,239

257,701

4.80

%

21,170,915

262,158

4.93

%

20,051,674

250,620

4.97

%

Taxable securities

2,719,089

13,940

2.05

%

2,648,092

13,145

1.99

%

2,716,616

27,919

4.11

%

Non-taxable securities (2)

244,895

1,980

3.23

%

252,765

2,086

3.30

%

282,998

2,619

3.70

%

Temporary investments and interest-bearing cash

1,045,975

4,343

1.65

%

759,416

4,204

2.20

%

462,621

2,621

2.25

%

Total interest-earning assets

25,804,367

$

282,372

4.36

%

25,159,343

$

285,546

4.52

%

23,752,867

$

287,252

4.81

%

Other assets

3,177,020

3,197,639

2,919,357

Total assets

$

28,981,387

$

28,356,982

$

26,672,224

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$

2,446,137

$

3,485

0.57

%

$

2,363,626

$

3,117

0.52

%

$

2,319,613

$

2,659

0.45

%

Money market deposits

6,853,118

13,690

0.79

%

6,962,370

16,575

0.94

%

6,371,127

9,170

0.57

%

Savings deposits

1,463,744

509

0.14

%

1,462,198

557

0.15

%

1,488,768

490

0.13

%

Time deposits

4,787,484

26,696

2.21

%

4,501,270

25,627

2.26

%

3,959,344

17,805

1.78

%

Total interest-bearing deposits

15,550,483

44,380

1.13

%

15,289,464

45,876

1.19

%

14,138,852

30,124

0.85

%

Repurchase agreements and federal funds purchased

303,230

431

0.56

%

313,089

448

0.57

%

284,847

185

0.26

%

Borrowings

1,027,311

5,080

1.96

%

860,285

4,238

1.95

%

751,773

3,326

1.75

%

Junior subordinated debentures

356,746

5,325

5.92

%

365,079

5,652

6.14

%

371,778

5,743

6.13

%

Total interest-bearing liabilities

17,237,770

$

55,216

1.27

%

16,827,917

$

56,214

1.33

%

15,547,250

$

39,378

1.00

%

Non-interest-bearing deposits

7,037,320

6,880,093

6,828,730

Other liabilities

389,020

388,162

261,119

Total liabilities

24,664,110

24,096,172

22,637,099

Common equity

4,317,277

4,260,810

4,035,125

Total liabilities and shareholders’ equity

$

28,981,387

$

28,356,982

$

26,672,224

NET INTEREST INCOME

$

227,156

$

229,332

$

247,874

NET INTEREST SPREAD

3.09

%

3.19

%

3.81

%

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)

3.51

%

3.63

%

4.15

%

(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 $342,000 for the three months ended December 31, 2019 as compared to $359,000 for September 30, 2019 and $484,000 for December 31, 2018. 

 

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)

(dollars in thousands)

Year Ended

December 31, 2019

December 31, 2018

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

$

299,560

$

14,477

4.83

%

$

288,288

$

14,475

5.02

%

Loans and leases (1)

20,889,769

1,036,600

4.96

%

19,562,369

957,639

4.90

%

Taxable securities

2,701,821

58,419

2.16

%

2,729,950

78,002

2.86

%

Non-taxable securities (2)

264,017

8,971

3.40

%

281,906

10,316

3.66

%

Temporary investments and interest-bearing cash

688,258

14,180

2.06

%

446,500

8,665

1.94

%

Total interest-earning assets

24,843,425

$

1,132,647

4.56

%

23,309,013

$

1,069,097

4.59

%

Other assets

3,128,419

2,901,920

Total assets

$

27,971,844

$

26,210,933

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$

2,365,845

$

12,040

0.51

%

$

2,333,662

$

7,675

0.33

%

Money market deposits

6,740,502

56,633

0.84

%

6,438,175

27,599

0.43

%

Savings deposits

1,467,263

1,746

0.12

%

1,473,134

1,356

0.09

%

Time deposits

4,483,818

97,522

2.17

%

3,575,526

56,055

1.57

%

Total interest-bearing deposits

15,057,428

167,941

1.12

%

13,820,497

92,685

0.67

%

Repurchase agreements and federal funds purchased

319,723

2,092

0.65

%

287,767

506

0.18

%

Borrowings

896,681

17,564

1.96

%

785,593

13,604

1.73

%

Junior subordinated debentures

373,253

22,845

6.12

%

370,518

21,715

5.86

%

Total interest-bearing liabilities

16,647,085

$

210,442

1.26

%

15,264,375

$

128,510

0.84

%

Non-interest-bearing deposits

6,746,607

6,699,112

Other liabilities

371,772

244,746

Total liabilities

23,765,464

22,208,233

Common equity

4,206,380

4,002,700

Total liabilities and shareholders’ equity

$

27,971,844

$

26,210,933

NET INTEREST INCOME

$

922,205

$

940,587

NET INTEREST SPREAD

3.30

%

3.75

%

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)

3.71

%

4.04

%

(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 $1.6 million for the twelve months ended December 31, 2019 as compared to $1.9 million for the same period in 2018. 

 

Umpqua Holdings Corporation
Residential Mortgage Banking Activity

(Unaudited)

Quarter Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Sep 30, 2019

Jun 30, 2019

Mar 31, 2019

Dec 31, 2018

Seq. Quarter

Year
over Year

Residential mortgage banking revenue:

Origination and sale

$

35,438

$

31,432

$

23,151

$

14,373

$

16,665

13

%

113

%

Servicing

8,981

11,358

11,036

10,824

11,555

(21)

%

(22)

%

Change in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time

(5,237)

(6,835)

(6,905)

(6,431)

(6,425)

(23)

%

(18)

%

Changes due to valuation inputs or assumptions

(5,132)

11,045

(17,753)

(7,535)

(6,645)

(146)

%

(23)

%

Total

$

34,050

$

47,000

$

9,529

$

11,231

$

15,150

(28)

%

125

%

Closed loan volume:

Portfolio

$

335,511

$

611,022

$

481,878

$

318,612

$

312,524

(45)

%

7

%

For-sale

1,060,016

844,442

698,150

487,090

589,355

26

%

80

%

Total

$

1,395,527

$

1,455,464

$

1,180,028

$

805,702

$

901,879

(4)

%

55

%

Gain on sale margin:

Based on for-sale volume

3.34

%

3.72

%

3.32

%

2.95

%

2.83

%

(0.38)

0.51

Residential mortgage servicing rights:

Balance, beginning of period

$

151,383

$

139,780

$

158,946

$

169,025

$

175,038

8

%

(14)

%

Additions for new MSR capitalized

8,397

7,393

5,492

3,887

7,057

14

%

19

%

Sale of MSR assets

(34,401)

nm

nm

Changes in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time

(5,237)

(6,835)

(6,905)

(6,431)

(6,425)

(23)

%

(18)

%

Changes due to valuation inputs or assumptions

(5,132)

11,045

(17,753)

(7,535)

(6,645)

(146)

%

(23)

%

Balance, end of period

$

115,010

$

151,383

$

139,780

$

158,946

$

169,025

(24)

%

(32)

%

Residential mortgage loans serviced for others

$

12,276,943

$

15,707,519

$

15,796,102

$

15,902,587

$

15,978,885

(22)

%

(23)

%

MSR as % of serviced portfolio

0.94

%

0.96

%

0.88

%

1.00

%

1.06

%

(0.02)

(0.12)

 

Umpqua Holdings Corporation
Residential Mortgage Banking Activity

(Unaudited)

Year Ended

% Change

(Dollars in thousands)

Dec 31, 2019

Dec 31, 2018

Year over Year

Residential mortgage banking revenue:

Origination and sale

$

104,394

$

88,644

18

%

Servicing

42,199

42,786

(1)

%

Change in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time

(25,408)

(24,533)

4

%

Changes due to valuation inputs or assumptions

(19,375)

11,338

(271)

%

Total

$

101,810

$

118,235

(14)

%

Closed loan volume:

Portfolio

$

1,747,023

$

1,168,829

49

%

For-sale

3,089,698

2,872,994

8

%

Total

$

4,836,721

$

4,041,823

20

%

Gain on sale margin:

Based on for-sale volume

3.38

%

3.09

%

0.29

Residential mortgage servicing rights:

Balance, beginning of period

$

169,025

$

153,151

10

%

Additions for new MSR capitalized

25,169

29,069

(13)

%

Sale of MSR assets

(34,401)

nm

Changes in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time

(25,408)

(24,533)

4

%

Changes due to valuation inputs or assumptions

(19,375)

11,338

(271)

%

Balance, end of period

$

115,010

$

169,025

(32)

%

 

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SOURCE Umpqua Holdings Corporation