Oregon

Umpqua Reports Second Quarter 2021 Results

PORTLAND, Ore., July 21, 2021 /PRNewswire/ --

$0.53


$116


17.33%


15.4%

Net earnings per diluted

common share


Net income ($ in millions)


Return on average tangible
common equity ("ROATCE")1


Total risk-based capital ratio

(estimated)

CEO Commentary

"Umpqua's strong results this past quarter demonstrate both the company's commitment to generating long-term value for shareholders and our optimism for growth in the markets we serve. I'm very pleased to see the success of our balanced growth efforts and unique Human Digital value proposition reflected in our record growth in non-PPP (Paycheck Protection Program) loans and increase in core bank revenue.  Our brand momentum within our markets continues to build and we look forward to robust customer and talent acquisition in the quarters to come."
–            Cort O'Haver, President and CEO of Umpqua Holdings Corporation

SECOND QUARTER HIGHLIGHTS



Net Interest
Income and
NIM

•   Net interest income increased by $8.3 million on a quarter to quarter basis primarily due to higher average loan balances and lower interest expense in the current period.

•   Net interest margin was 3.20%, up two basis points from the prior period due to higher average loan balances and lower interest expense.



Non-Interest
Income and Expense

•   Non-interest income decreased by $17.7 million due to lower net mortgage banking revenue of $20.6 million.

•   Non-interest expense increased by $1.8 million due to exit disposal costs of $4.7 million as a result of store consolidations and back-office lease exits.



Credit Quality

•   Net charge-offs decreased by eight basis points to 0.25% of average loans and leases (annualized).

•   A recapture of the provision for credit losses of $23.0 million was recorded in the period as economic conditions improve.

•   Non-performing assets to total assets decreased two basis points to 0.17% from 0.19%.



Capital

•   Estimated total risk-based capital ratio of 15.4% and estimated Tier 1 Risk Based Capital ratio of 12.4%.

•   Paid a quarterly cash dividend of $0.21 per common share on May 28, 2021 to shareholders of record as of May 18, 2021.



Notable items

•   $4.5 million gain on the sale of Umpqua Investments completed during the quarter.

•   $4.7 million in exit disposal costs related to store consolidations and back-office lease exits.

 

2Q21 KEY FINANCIAL DATA







PERFORMANCE METRICS

2Q21


1Q21


2Q20

Return on average assets

1.54%


1.49%


0.73%

Return on average tangible common equity

17.33%


16.43%


8.53%

Net interest margin

3.20%


3.18%


3.09%

Efficiency ratio - consolidated

58.96%


56.74%


55.40%

Loan to deposit ratio

84.67%


85.61%


91.25%







INCOME STATEMENT

($ in 000s, excl. per share data)

2Q21


1Q21


2Q20

Net interest income

$229,763


$221,431


$212,503

(Recapture) provision for credit losses

($22,996)



$87,085

Non-interest income

$91,075


$108,800


$115,480

Non-interest expense

$189,400


$187,592


$181,910

Earnings per common share - diluted

$0.53


$0.49


$0.24

Dividends paid per share

$0.21


$0.21


$0.21







BALANCE SHEET

2Q21


1Q21


2Q20

Total assets

$30.3

B


$30.0

B


$29.6

B

Loans and leases

$22.1

B


$22.2

B


$22.7

B

Total deposits

$26.2

B


$25.9

B


$24.8

B

Tangible book value per share1

$12.49


$12.10


$11.44

Book value per common shares

$12.54


$12.16


$11.53

Segment Disclosures
Segment disclosures on pages 19, 20 and 21 of this press release provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.

The Core Banking segment includes all lines of business, except Mortgage Banking, including wholesale, retail, wealth management, as well as the operations, technology, and administrative functions of the Bank and Holding Company.  The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from our serviced loan portfolio, the quarterly changes to the mortgage servicing rights (MSR) asset, and the specific expenses that are related to mortgage banking activities including variable commission expenses.  Revenue and related expenses related to residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for our consumer channels and are originated through a variety of channels throughout the Company.

Balance Sheet
Total consolidated assets were $30.3 billion as of June 30, 2021, compared to $30.0 billion as of March 31, 2021 and $29.6 billion as of June 30, 2020.  Including secured off-balance sheet lines of credit, total available liquidity was $15.6 billion as of June 30, 2021, representing 51% of total assets and 60% of total deposits.

Gross loans and leases were $22.1 billion as of June 30, 2021, a decrease of $17.1 million relative to March 31, 2021.  The net decrease in gross loans and leases is primarily due to an increase of non-PPP loans of $650.5 million or 3.2% offset by the expected decrease in PPP loan balances of $667.6 million due to processed forgiveness and payoffs. Commercial real estate balances increased $281.8 million and residential real estate balances increased $207.9 million during the quarter.  The decrease in commercial loan balances of $502.7 million includes the aforementioned decrease of PPP loan balances of $667.6 million.  Please refer to the additional loan tables in the Q2 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.

Total deposits were $26.2 billion as of June 30, 2021, an increase of $266.7 million or 1% from $25.9 billion as of March 31, 2021. This increase was primarily attributable to growth in interest bearing demand deposits of $221.6 million, growth in non-interest bearing demand deposits of $218.4 million and growth in savings balances of $112.3 million, partially offset by a decline in time deposits of $290.5 million.

Net Interest Income
Net interest income was $229.8 million for the second quarter of 2021, up $8.3 million from the prior quarter.  The increase was primarily driven by an increase of $3.7 million in interest income, as a result of higher average loan balances, and a decrease of $4.6 million in interest expense due to the decline in time deposits in the quarter compared to the prior period.

The Company's net interest margin was 3.20% for the second quarter of 2021, up two basis points from 3.18% for the first quarter of 2021 primarily driven by the decrease in interest expense due to the decline in deposit costs.

Credit Quality
The allowance for credit losses was $294.4 million, or 1.33% of loans and leases, as of June 30, 2021, which was down from $331.0 million, or 1.49% of loans and leases, as of March 31, 2021.  There was a recapture of provision for credit losses of $23.0 million as a result of improvement in economic forecasts used in the credit models.

Net charge-offs as a percentage of average loans and leases decreased by eight basis points to 0.25% of average loans and leases (annualized) as of June 30, 2021.  The decrease in net charge-offs for the quarter was primarily due to continued stable credit performance of the loan portfolio. As of June 30, 2021, non-performing assets were 0.17% of total assets, compared to 0.19% as of March 31, 2021 and 0.25% as of June 30, 2020.

Current Expected Credit Loss (CECL)
On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").  In applying CECL, we use credit models that factor in economic forecasts to project life of loan performance.  At the beginning of the COVID-19 pandemic, economic forecasts projected significant, negative COVID-19 related impacts to the economy; therefore we recorded significant provisions for credit losses in the first and second quarters of 2020. As those future economic forecasts stabilized as well as incorporating loan mix changes, we recorded a recapture of $23.0 million of the allowance for credit losses in the current period.

Non-interest Income
Non-interest income was $91.1 million for the second quarter of 2021, down $17.7 million from the prior quarter driven primarily by a decrease in net mortgage banking revenue of $20.6 million.

Revenue from the origination and sale of residential mortgages was $41.4 million for the second quarter of 2021, a decrease of $21.1 million from the prior quarter. This decrease reflects a sequential quarter decrease of $382.5 million or 23.4% in for-sale mortgage origination volume and a decrease of 52 basis points in the mortgage banking gain on sale margin to 3.30% for the second quarter of 2021. Of the current quarter's mortgage production, 56% related to purchase activity, compared to 37% for the prior quarter and 34% for the same period of the prior year.

Non-interest Expense
Non-interest expense was $189.4 million for the second quarter of 2021, up $1.8 million from the prior quarter level. This increase was primarily due to an increase in exit and disposal costs of $3.5 million from the prior period due to store consolidations and back-office lease exits, an increase in consulting and professional fees of $1.1 million, offset by an increase in deferred origination costs of $1.7 million and a decrease in FDIC assessment costs of $1.0 million

Capital
As of June 30, 2021, the Company's tangible book value per common share2 increased to $12.49, compared to $12.10 in the prior quarter and $11.44 in the same period of the prior year. 

The Company's estimated total risk-based capital ratio was 15.4% and its estimated Tier 1 common to risk weightedassets ratio was 12.4% as of June 30, 2021. The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of June 30, 2021 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).

(In thousands, except per share data)


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020

Total shareholders' equity


$

2,766,316



$

2,681,869



$

2,704,577



$

2,610,244



$

2,538,339


Subtract:











Goodwill


—



2,715



2,715



2,715



2,715


Other intangible assets, net


11,100



12,230



13,360



14,606



15,853


Tangible common shareholders' equity


$

2,755,216



$

2,666,924



$

2,688,502



$

2,592,923



$

2,519,771


Total assets


$

30,284,965



$

30,036,680



$

29,235,175



$

29,437,441



$

29,645,248


Subtract:











Goodwill


—



2,715



2,715



2,715



2,715


Other intangible assets, net


11,100



12,230



13,360



14,606



15,853


Tangible assets


$

30,273,865



$

30,021,735



$

29,219,100



$

29,420,120



$

29,626,680


Common shares outstanding at period end


220,626



220,491



220,226



220,222



220,219













Total shareholders' equity to total assets ratio


9.13

%


8.93

%


9.25

%


8.87

%


8.56

%

Tangible common equity ratio


9.10

%


8.88

%


9.20

%


8.81

%


8.51

%

Book value per common share


$

12.54



$

12.16



$

12.28



$

11.85



$

11.53


Tangible book value per common share


$

12.49



$

12.10



$

12.21



$

11.77



$

11.44


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 Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.

Earnings Conference Call Information
The Company will host its second quarter 2021 earnings conference call on July 22, 2021, 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 second quarter 2021 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: 3759164.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 3759164. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

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.  Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives.  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: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company's Board of Directors, and may be subject to regulatory approval or conditions.

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)


Quarter Ended


% Change

(In thousands, except per share data)

Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Seq.

Quarter


Year
over
Year

Interest income:














Loans and leases

$

223,470



$

221,141



$

240,815



$

229,457



$

235,174



1

%


(5)

%

Interest and dividends on investments:














Taxable

14,619



13,112



11,951



10,168



9,015



11

%


62

%

Exempt from federal income tax

1,487



1,534



1,523



1,490



1,520



(3)

%


(2)

%

Dividends

405



598



659



710



568



(32)

%


(29)

%

Temporary investments and interest bearing deposits

774



624



531



474



403



24

%


92

%

Total interest income

240,755



237,009



255,479



242,299



246,680



2

%


(2)

%

Interest expense:














Deposits

7,016



10,678



14,567



19,121



26,222



(34)

%


(73)

%

Securities sold under agreement to repurchase and federal funds purchased

68



76



93



84



194



(11)

%


(65)

%

Borrowings

866



1,772



2,765



3,271



3,839



(51)

%


(77)

%

Junior subordinated debentures

3,042



3,052



3,147



3,249



3,922



0

%


(22)

%

Total interest expense

10,992



15,578



20,572



25,725



34,177



(29)

%


(68)

%

Net interest income

229,763



221,431



234,907



216,574



212,503



4

%


8

%

 (Recapture) provision for credit losses

(22,996)



—



29



(338)



87,085



nm



(126)

%

Non-interest income:














Service charges on deposits

10,310



9,647



10,202



10,405



8,757



7

%


18

%

Card-based fees

10,274



7,374



7,754



7,118



5,901



39

%


74

%

Brokerage revenue

1,135



3,915



4,093



3,686



3,805



(71)

%


(70)

%

Residential mortgage banking revenue, net

44,443



65,033



79,028



90,377



83,877



(32)

%


(47)

%

Gain on sale of debt securities, net

—



4



—



—



323



(100)

%


(100)

%

Gain (loss) on equity securities, net

4



(706)



(173)



(112)



240



(101)

%


(98)

%

Gain on loan and lease sales, net

5,318



1,373



3,374



1,092



1,074



287

%


395

%

BOLI income

2,092



2,071



2,067



2,087



2,116



1

%


(1)

%

Other income

17,499



20,089



17,615



17,271



9,387



(13)

%


86

%

Total non-interest income

91,075



108,800



123,960



131,924



115,480



(16)

%


(21)

%

Non-interest expense:














Salaries and employee benefits

121,573



124,134



132,460



120,337



116,676



(2)

%


4

%

Occupancy and equipment, net

34,657



34,635



41,758



36,720



36,171



0

%


(4)

%

Intangible amortization

1,130



1,130



1,246



1,247



1,246



0

%


(9)

%

FDIC assessments

1,607



2,599



3,014



2,989



3,971



(38)

%


(60)

%

Other expenses

30,433



25,094



32,834



28,914



23,846



21

%


28

%

Total non-interest expense

189,400



187,592



211,312



190,207



181,910



1

%


4

%

Income before provision for income taxes

154,434



142,639



147,526



158,629



58,988



8

%


162

%

Provision (benefit) for income taxes

38,291



34,902



(3,204)



33,758



6,062



10

%


532

%

Net income

$

116,143



$

107,737



$

150,730



$

124,871



$

52,926



8

%


119

%















Weighted average basic shares outstanding

220,593



220,367



220,225



220,221



220,210



0

%


0

%

Weighted average diluted shares outstanding

221,022



220,891



220,663



220,418



220,320



0

%


0

%

Earnings per common share – basic

$

0.53



$

0.49



$

0.68



$

0.57



$

0.24



8

%


121

%

Earnings per common share – diluted

$

0.53



$

0.49



$

0.68



$

0.57



$

0.24



8

%


121

%















nm = not meaningful














 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)



Six Months Ended


% Change

(In thousands, except per share data)


Jun 30, 2021


Jun 30, 2020


Year

 over      Year

Interest income:







Loans and leases


$

444,611



$

481,167



(8)

%

Interest and dividends on investments:







Taxable


27,731



25,620



8

%

Exempt from federal income tax


3,021



3,082



(2)

%

Dividends


1,003



1,246



(20)

%

Temporary investments and interest bearing deposits


1,398



3,734



(63)

%

Total interest income


477,764



514,849



(7)

%

Interest expense:







Deposits


17,694



66,512



(73)

%

Securities sold under agreement to repurchase and federal funds purchased


144



589



(76)

%

Borrowings


2,638



7,885



(67)

%

Junior subordinated debentures


6,094



8,825



(31)

%

Total interest expense


26,570



83,811



(68)

%

Net interest income


451,194



431,038



5

%

(Recapture) provision for credit losses


(22,996)



205,170



(111)

%

Non-interest income:







Service charges on deposits


19,957



20,230



(1)

%

Card-based fees


17,648



13,318




Brokerage revenue


5,050



7,820



(35)

%

Residential mortgage banking revenue, net


109,476



101,417



8

%

Gain on sale of debt securities, net


4



190



(98)

%

(Loss) gain on equity securities, net


(702)



1,054



(167)

%

Gain on loan and lease sales, net


6,691



2,241



199

%

BOLI income


4,163



4,245



(2)

%

Other income


37,588



5,610



570

%

Total non-interest income


199,875



156,125



28

%

Non-interest expense:







Salaries and employee benefits


245,707



226,450



9

%

Occupancy and equipment, net


69,292



73,172



(5)

%

Intangible amortization


2,260



2,493



(9)

%

FDIC assessments


4,206



6,513



(35)

%

Goodwill impairment


—



1,784,936



nm

Other expenses


55,527



51,004



9

%

Total non-interest expense


376,992



2,144,568



(82)

%

Income (loss) before provision for income taxes


297,073



(1,762,575)



(117)

%

Provision for income taxes


73,193



36,446



101

%

Net income (loss)


$

223,880



$

(1,799,021)



(112)

%








Weighted average basic shares outstanding


220,481



220,213



0

%

Weighted average diluted shares outstanding


220,928



220,213



0

%

Earnings (loss) per common share – basic


$

1.02



$

(8.17)



(112)

%

Earnings (loss) per common share – diluted


$

1.01



$

(8.17)



(112)

%








nm = not meaningful







 

Umpqua Holdings Corporation

Consolidated Balance Sheets

(Unaudited)












% Change

(In thousands, except per share data)

Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Seq.

Quarter


Year

over

Year

Assets:














Cash and due from banks

$

397,526



$

379,361



$

370,219



$

370,595



$

410,769



5

%


(3)

%

Interest bearing cash and temporary investments

2,688,285



2,861,820



2,202,962



1,849,132



1,853,505



(6)

%


45

%

Investment securities:














Equity and other, at fair value

82,099



82,771



83,077



82,769



81,958



(1)

%


0

%

Available for sale, at fair value

3,473,950



3,167,825



2,932,558



2,898,700



2,865,690



10

%


21

%

Held to maturity, at amortized cost

2,876



2,954



3,034



3,088



3,143



(3)

%


(8)

%

Loans held for sale

429,052



376,481



766,225



683,960



605,399



14

%


(29)

%

Loans and leases

22,143,739



22,160,860



21,779,367



22,426,473



22,671,455



0

%


(2)

%

Allowance for credit losses on loans and leases

(279,887)



(311,283)



(328,401)



(345,049)



(356,745)



(10)

%


(22)

%

Net loans and leases

21,863,852



21,849,577



21,450,966



22,081,424



22,314,710



0

%


(2)

%

Restricted equity securities

15,247



22,057



41,666



50,062



54,062



(31)

%


(72)

%

Premises and equipment, net

172,546



176,571



178,050



185,104



192,041



(2)

%


(10)

%

Operating lease right-of-use assets

95,030



100,643



104,937



107,321



111,487



(6)

%


(15)

%

Goodwill

—



2,715



2,715



2,715



2,715



(100)

%


(100)

%

Other intangible assets, net

11,100



12,230



13,360



14,606



15,853



(9)

%


(30)

%

Residential mortgage servicing rights, at fair value

102,699



100,413



92,907



93,248



96,356



2

%


7

%

Bank owned life insurance

324,998



322,867



323,470



326,120



324,873



1

%


0

%

Deferred tax asset, net

—



10,905



—



—



—



(100)

%


nm


Other assets

625,705



567,490



669,029



688,597



712,687



10

%


(12)

%

Total assets

$

30,284,965



$

30,036,680



$

29,235,175



$

29,437,441



$

29,645,248



1

%


2

%

Liabilities:














Deposits

$

26,153,553



$

25,886,833



$

24,622,201



$

24,669,783



$

24,844,378



1

%


5

%

Securities sold under agreements to repurchase

480,302



420,402



375,384



388,028



398,414



14

%


21

%

Borrowings

111,405



281,444



771,482



996,520



1,096,559



(60)

%


(90)

%

Junior subordinated debentures, at fair value

287,723



281,580



255,217



247,045



232,936



2

%


24

%

Junior subordinated debentures, at amortized cost

88,155



88,212



88,268



88,325



88,382



0

%


0

%

Operating lease liabilities

106,195



109,014



113,593



115,790



119,885



(3)

%


(11)

%

Deferred tax liability, net

2,497



—



5,441



13,239



21,439



nm


(88)

%

Other liabilities

288,819



287,326



299,012



308,467



304,916



1

%


(5)

%

Total liabilities

27,518,649



27,354,811



26,530,598



26,827,197



27,106,909



1

%


2

%

Shareholders' equity:














Common stock

3,517,641



3,515,248



3,514,599



3,512,153



3,510,145



0

%


0

%

Accumulated deficit

(801,954)



(871,511)



(932,767)



(1,036,931)



(1,115,414)



(8)

%


(28)

%

Accumulated other comprehensive income

50,629



38,132



122,745



135,022



143,608



33

%


(65)

%

Total shareholders' equity

2,766,316



2,681,869



2,704,577



2,610,244



2,538,339



3

%


9

%

Total liabilities and shareholders' equity

$

30,284,965



$

30,036,680



$

29,235,175



$

29,437,441



$

29,645,248



1

%


2

%















Common shares outstanding at period end

220,626



220,491



220,226



220,222



220,219



0

%


0

%

Book value per common share

$

12.54



$

12.16



$

12.28



$

11.85



$

11.53



3

%


9

%

Tangible book value per common share

$

12.49



$

12.10



$

12.21



$

11.77



$

11.44



3

%


9

%

Tangible equity - common

$

2,755,216



$

2,666,924



$

2,688,502



$

2,592,923



$

2,519,771



3

%


9

%

Tangible common equity to tangible assets

9.10

%


8.88

%


9.20

%


8.81

%


8.51

%


0.22


0.59

nm = not meaningful














 

Umpqua Holdings Corporation

Loan and Lease Portfolio

(Unaudited)


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


% Change

 (Dollars in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Loans and leases:














Commercial real estate:














Non-owner occupied term, net

$

3,580,386



$

3,455,773



$

3,505,802



$

3,533,776



$

3,589,484



4

%


0

%

Owner occupied term, net

2,398,326



2,358,169



2,333,945



2,411,098



2,459,954



2

%


(3)

%

Multifamily, net

3,553,704



3,421,320



3,349,196



3,389,034



3,466,829



4

%


3

%

Construction & development, net

857,866



876,297



828,478



757,462



662,703



(2)

%


29

%

Residential development, net

193,904



190,841



192,761



163,400



164,180



2

%


18

%

Commercial:














Term, net (1)

3,748,269



4,350,763



4,024,467



4,246,229



4,265,092



(14)

%


(12)

%

Lines of credit & other, net

908,518



825,162



862,760



894,782



940,443



10

%


(3)

%

Leases & equipment finance, net

1,437,372



1,420,977



1,456,630



1,496,650



1,522,369



1

%


(6)

%

Residential:














Mortgage, net

4,145,432



3,958,644



3,871,906



4,042,416



4,056,588



5

%


2

%

Home equity loans & lines, net

1,118,278



1,097,168



1,136,064



1,172,697



1,189,428



2

%


(6)

%

   Consumer & other, net

201,684



205,746



217,358



318,929



354,385



(2)

%


(43)

%

Total loans and leases, net of deferred fees and costs

$

22,143,739



$

22,160,860



$

21,779,367



$

22,426,473



$

22,671,455



0

%


(2)

%















(1)    The Bank participates in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and
cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include 14,000 PPP loans,
totaling $1.4 billion, net of deferred fees and costs as of June 30, 2021.















Loan and leases mix:














Commercial real estate:














   Non-owner occupied term, net

16

%


15

%


16

%


16

%


16

%





   Owner occupied term, net

11

%


11

%


11

%


11

%


11

%





   Multifamily, net

16

%


15

%


15

%


15

%


15

%





Construction & development, net

4

%


4

%


4

%


3

%


3

%





Residential development, net

1

%


1

%


1

%


1

%


1

%





Commercial:














Term, net

17

%


20

%


18

%


19

%


19

%





Lines of credit & other, net

4

%


4

%


4

%


4

%


4

%





Leases & equipment finance, net

6

%


6

%


7

%


7

%


7

%





Residential:














Mortgage, net

19

%


18

%


18

%


18

%


18

%





Home equity loans & lines, net

5

%


5

%


5

%


5

%


5

%





   Consumer & other, net

1

%


1

%


1

%


1

%


1

%





Total

100

%


100

%


100

%


100

%


100

%





 

Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


% Change

 (Dollars in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Deposits:














Demand, non-interest bearing

$

10,718,921



$

10,500,482



$

9,632,773



$

9,475,244



$

9,172,210



2

%


17

%

Demand, interest bearing

3,466,251



3,244,624



3,051,487



2,931,990



2,813,722



7

%


23

%

Money market

7,559,621



7,554,798



7,173,920



7,160,838



7,262,777



0

%


4

%

Savings

2,221,524



2,109,211



1,912,752



1,848,639



1,730,051



5

%


28

%

Time

2,187,236



2,477,718



2,851,269



3,253,072



3,865,618



(12)

%


(43)

%

Total

$

26,153,553



$

25,886,833



$

24,622,201



$

24,669,783



$

24,844,378



1

%


5

%















Total core deposits (1)

$

25,122,851



$

24,740,621



$

23,298,561



$

23,134,283



$

22,934,059



2

%


10

%















Deposit mix:














Demand, non-interest bearing

41

%


41

%


39

%


38

%


37

%





Demand, interest bearing

13

%


12

%


12

%


12

%


11

%





Money market

29

%


29

%


29

%


29

%


29

%





Savings

9

%


8

%


8

%


8

%


7

%





Time

8

%


10

%


12

%


13

%


16

%





Total

100

%


100

%


100

%


100

%


100

%



















Number of open accounts:














Demand, non-interest bearing

424,626



422,792



420,050



423,658



423,456






Demand, interest bearing

71,411



72,156



72,811



73,812



74,813






Money market

58,289



58,409



58,609



59,083



59,445






Savings

161,902



161,432



160,192



162,234



161,710






Time

39,560



43,637



48,292



52,572



57,501






Total

755,788



758,426



759,954



771,359



776,925




















Average balance per account:














Demand, non-interest bearing

$

25.2



$

24.8



$

22.9



$

22.4



$

21.7






Demand, interest bearing

48.5



45.0



41.9



39.7



37.6






Money market

129.7



129.3



122.4



121.2



122.2






Savings

13.7



13.1



11.9



11.4



10.7






Time

55.3



56.8



59.0



61.9



67.2






Total

$

34.6



$

34.1



$

32.4



$

32.0



$

32.0






(1)

Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.

 

Umpqua Holdings Corporation

Credit Quality – Non-performing Assets

 (Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Seq.
Quarter


Year
over
Year

Non-performing assets:















Loans and leases on non-accrual status


$

20,673



$

29,216



$

31,076



$

26,425



$

32,412



(29)

%


(36)

%

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


29,144



25,612



36,361



50,269



39,818



14

%


(27)

%

Total non-performing loans and leases


49,817



54,828



67,437



76,694



72,230



(9)

%


(31)

%

Other real estate owned


181



1,405



1,810



2,369



2,578



(87)

%


(93)

%

Total non-performing assets


$

49,998



$

56,233



$

69,247



$

79,063



$

74,808



(11)

%


(33)

%
















Performing restructured loans and leases


$

13,072



$

9,921



$

14,991



$

15,819



$

15,032



32

%


(13)

%

Loans and leases past due 31-89 days


$

30,646



$

51,120



$

72,047



$

66,155



$

40,583



(40)

%


(24)

%

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


0.14

%


0.23

%


0.33

%


0.29

%


0.18

%





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


0.22

%


0.25

%


0.31

%


0.34

%


0.32

%





Non-performing assets to total assets(1)


0.17

%


0.19

%


0.24

%


0.27

%


0.25

%





(1)

Excludes certain mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $20.0 million and $2.6 million at September 30, 2020 and June 30, 2020, respectively. There were no non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so at June 30, 2021, March 31, 2021 and December 31, 2020.

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Sep 30,
2020


Jun 30,

2020


Seq.
Quarter


Year
over
Year

Allowance for credit losses on loans and leases (ACLLL)















Balance, beginning of period


$

311,283



$

328,401



$

345,049



$

356,745



$

291,420



(5)

%


7

%

Impact of adoption of CECL


—



—



—



—



—



nm



nm


Adjusted balance, beginning of period


311,283



328,401



345,049



356,745



291,420



(5)

%


7

%

(Recapture) provision for credit losses on loans and leases


(17,775)



526



3,104



1,785



81,484



(3,479)

%


(122)

%

Charge-offs


(17,079)



(20,915)



(23,942)



(16,646)



(19,453)



(18)

%


(12)

%

Recoveries


3,458



3,271



4,190



3,165



3,294



6

%


5

%

Net charge-offs


(13,621)



(17,644)



(19,752)



(13,481)



(16,159)



(23)

%


(16)

%

Balance, end of period


$

279,887



$

311,283



$

328,401



$

345,049



$

356,745



(10)

%


(22)

%

Reserve for unfunded commitments















Balance, beginning of period


$

19,760



$

20,286



$

24,306



$

26,368



$

20,927



(3)

%


(6)

%

(Recapture) provision for credit losses on unfunded commitments


(5,221)



(526)



(4,020)



(2,062)



5,441



893

%


(196)

%

Balance, end of period


14,539



19,760



20,286



24,306



26,368



(26)

%


(45)

%

Total Allowance for credit losses (ACL)


$

294,426



$

331,043



$

348,687



$

369,355



$

383,113



(11)

%


(23)

%
















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


0.25

%


0.33

%


0.35

%


0.24

%


0.29

%





Recoveries to gross charge-offs


20.25

%


15.64

%


17.50

%


19.01

%


16.93

%





ACLLL to loans and leases


1.26

%


1.40

%


1.51

%


1.54

%


1.57

%





ACL to loans and leases


1.33

%


1.49

%


1.60

%


1.65

%


1.69

%





nm = not meaningful















 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Six Months Ended


% Change

(Dollars in thousands)


Jun 30, 2021


Jun 30, 2020


Year over Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$

328,401



$

157,629



108

%

Impact of adoption of CECL


—



49,999



nm


Adjusted balance, beginning of period


328,401



207,628



58

%

(Recapture) provision for credit losses on loans and leases 


(17,249)



186,986



(109)

%

Charge-offs


(37,994)



(43,908)



(13)

%

Recoveries


6,729



6,039



11

%

Net charge-offs


(31,265)



(37,869)



(17)

%

Balance, end of period


$

279,887



$

356,745



(22)

%

Reserve for unfunded commitments







Balance, beginning of period


$

20,286



$

5,106



297

%

Impact of adoption of CECL


—



3,238



nm


Adjusted balance, beginning of period


20,286



8,344



143

%

(Recapture) provision for credit losses on unfunded commitments


(5,747)



18,024



(132)

%

Balance, end of period


14,539



26,368



(45)

%

Total Allowance for credit losses (ACL)


$

294,426



$

383,113



(23)

%








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


0.29

%


0.35

%



Recoveries to gross charge-offs


17.71

%


13.75

%



nm = not meaningful







 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



Quarter Ended


% Change



Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Seq.
Quarter


Year

over

Year

Average Rates:















Yield on loans held for sale


3.18

%


2.75

%


3.19

%


3.13

%


3.77

%


0.43



(0.59)


Yield on loans and leases


3.99

%


4.02

%


4.24

%


3.96

%


4.11

%


(0.03)



(0.12)


Yield on taxable investments


1.87

%


1.86

%


1.77

%


1.56

%


1.38

%


0.01



0.49


Yield on tax-exempt investments (1)


3.02

%


3.03

%


3.08

%


3.11

%


3.17

%


(0.01)



(0.15)


Yield on interest bearing cash and temporary investments


0.11

%


0.10

%


0.10

%


0.10

%


0.10

%


0.01



0.01


Total yield on earning assets (1)


3.35

%


3.41

%


3.64

%


3.45

%


3.59

%


(0.06)



(0.24)

















Cost of interest bearing deposits


0.18

%


0.29

%


0.38

%


0.49

%


0.67

%


(0.11)



(0.49)


Cost of securities sold under agreements















to repurchase and fed funds purchased


0.06

%


0.08

%


0.09

%


0.09

%


0.21

%


(0.02)



(0.15)


Cost of borrowings


1.62

%


1.33

%


1.18

%


1.23

%


1.33

%


0.29



0.29


Cost of junior subordinated debentures


3.30

%


3.60

%


3.73

%


4.03

%


5.55

%


(0.30)



(2.25)


Total cost of interest bearing liabilities


0.27

%


0.38

%


0.49

%


0.59

%


0.78

%


(0.11)



(0.51)

















Net interest spread (1)


3.08

%


3.03

%


3.15

%


2.85

%


2.81

%


0.05



0.27


Net interest margin (1)


3.20

%


3.18

%


3.35

%


3.08

%


3.09

%


0.02



0.11

















Performance Ratios:















Return on average assets


1.54

%


1.49

%


2.04

%


1.68

%


0.73

%


0.05



0.81


Return on average tangible assets


1.55

%


1.49

%


2.04

%


1.68

%


0.73

%


0.06



0.82


Return on average common equity


17.25

%


16.33

%


22.92

%


19.48

%


8.46

%


0.92



8.79


Return on average tangible common equity


17.33

%


16.43

%


23.07

%


19.62

%


8.53

%


0.90



8.80


Efficiency ratio – Consolidated


58.96

%


56.74

%


58.82

%


54.52

%


55.40

%


2.22



3.56


Efficiency ratio – Bank


58.31

%


55.51

%


57.77

%


53.41

%


54.17

%


2.80



4.14


(1) 

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

 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



Six Months Ended


% Change



Jun 30, 2021


Jun 30, 2020


Year over Year

Average Rates:







Yield on loans held for sale


2.93

%


3.94

%


(1.01)


Yield on loans and leases


4.01

%


4.33

%


(0.32)


Yield on taxable investments


1.87

%


1.94

%


(0.07)


Yield on tax-exempt investments (1)


3.02

%


3.15

%


(0.13)


Yield on interest bearing cash and temporary investments


0.11

%


0.56

%


(0.45)


Total yield on earning assets (1)


3.38

%


3.88

%


(0.50)









Cost of interest bearing deposits


0.23

%


0.85

%


(0.62)


Cost of securities sold under agreements







to repurchase and fed funds purchased


0.07

%


0.33

%


(0.26)


Cost of borrowings


1.41

%


1.53

%


(0.12)


Cost of junior subordinated debentures


3.44

%


5.49

%


(2.05)


Total cost of interest bearing liabilities


0.33

%


0.96

%


(0.63)









Net interest spread (1)


3.05

%


2.92

%


0.13


Net interest margin (1)


3.19

%


3.25

%


(0.06)









Performance Ratios:







Return on average assets


1.52

%


(12.49)

%


14.01


Return on average tangible assets


1.52

%


(12.89)

%


14.41


Return on average common equity


16.80

%


(106.99)

%


123.79


Return on average tangible common equity


16.89

%


(145.65)

%


162.54


Efficiency ratio – Consolidated


57.84

%


364.82

%


(306.98)


Efficiency ratio – Bank


56.88

%


363.13

%


(306.25)









(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)

Jun 30,
2021


Mar 31,
2021


Dec 31,
2020


Sep 30,
2020


Jun 30,
2020


Seq.

Quarter


Year
over Year

Temporary investments and interest bearing cash

$

2,835,474



$

2,483,451



$

2,066,572



$

1,827,818



$

1,563,753



14

%


81

%

Investment securities, taxable

3,210,771



2,945,896



2,850,550



2,797,547



2,777,154



9

%


16

%

Investment securities, tax-exempt

247,282



252,741



245,997



237,165



235,934



(2)

%


5

%

Loans held for sale

468,960



703,557



696,688



669,646



577,773



(33)

%


(19)

%

Loans and leases

22,040,794



21,692,639



22,138,283



22,560,076



22,428,142



2

%


(2)

%

Total interest earning assets

28,803,281



28,078,284



27,998,090



28,092,252



27,582,756



3

%


4

%

Goodwill and other intangible assets, net

12,615



15,598



16,775



18,021



19,253



(19)

%


(34)

%

Total assets

30,156,017



29,392,490



29,396,311



29,533,871



29,066,775



3

%


4

%















Non-interest bearing demand deposits

10,582,197



9,897,749



9,587,081



9,335,350



8,484,684



7

%


25

%

Interest bearing deposits

15,474,743



15,166,198



15,165,049



15,451,816



15,803,595



2

%


(2)

%

Total deposits

26,056,940



25,063,947



24,752,130



24,787,166



24,288,279



4

%


7

%

Interest bearing liabilities

16,500,106



16,444,694



16,822,808



17,205,775



17,625,888



0

%


(6)

%















Shareholders' equity - common

2,700,010



2,674,871



2,615,676



2,549,703



2,514,754



1

%


7

%

Tangible common equity (1)

2,687,395



2,659,273



2,598,901



2,531,682



2,495,501



1

%


8

%


 

Umpqua Holdings Corporation

Average Balances

(Unaudited)



Six Months Ended

% Change

(Dollars in thousands)


Jun 30, 2021


Jun 30, 2020


Year over Year

Temporary investments and interest bearing cash


$

2,660,435



$

1,325,627



101

%

Investment securities, taxable


3,079,065



2,768,853



11

%

Investment securities, tax-exempt


249,996



238,505



5

%

Loans held for sale


585,611



492,577



19

%

Loans and leases


21,867,678



21,815,966



0

%

Total interest earning assets


28,442,785



26,641,528



7

%

Goodwill and other intangible assets, net


14,098



897,551



(98)

%

Total assets


29,776,362



28,956,388



3

%








Non-interest bearing demand deposits


10,241,863



7,687,002



33

%

Interest bearing deposits


15,321,323



15,749,751



(3)

%

Total deposits


25,563,186



23,436,753



9

%

Interest bearing liabilities


16,472,553



17,464,696



(6)

%








Shareholders' equity - common


2,687,510



3,381,417



(21)

%

Tangible common equity (1)


2,673,412



2,483,866



8

%








(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)


Quarter Ended


June 30, 2021


March 31, 2021


June 30, 2020

 (Dollars in thousands)

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

$

468,960



$

3,725



3.18

%


$

703,557



$

4,845



2.75

%


$

577,773



$

5,443



3.77

%

Loans and leases (1)

22,040,794



219,745



3.99

%


21,692,639



216,296



4.02

%


22,428,142



229,731



4.11

%

Taxable securities

3,210,771



15,024



1.87

%


2,945,896



13,710



1.86

%


2,777,154



9,583



1.38

%

Non-taxable securities (2)

247,282



1,864



3.02

%


252,741



1,915



3.03

%


235,934



1,868



3.17

%

Temporary investments and interest-bearing cash

2,835,474



774



0.11

%


2,483,451



624



0.10

%


1,563,753



403



0.10

%

Total interest-earning assets

28,803,281



$

241,132



3.35

%


28,078,284



$

237,390



3.41

%


27,582,756



$

247,028



3.59

%

Other assets

1,352,736







1,314,206







1,484,019






Total assets

$

30,156,017







$

29,392,490







$

29,066,775






INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$

3,385,336



$

459



0.05

%


$

3,125,398



$

414



0.05

%


$

2,649,331



$

1,148



0.17

%

Money market deposits

7,614,474



1,533



0.08

%


7,360,512



1,491



0.08

%


7,275,041



4,037



0.22

%

Savings deposits

2,171,865



154



0.03

%


1,998,927



163



0.03

%


1,628,276



198



0.05

%

Time deposits

2,303,068



4,870



0.85

%


2,681,361



8,610



1.30

%


4,250,947



20,839



1.97

%

Total interest-bearing deposits

15,474,743



7,016



0.18

%


15,166,198



10,678



0.29

%


15,803,595



26,222



0.67

%

Repurchase agreements and federal funds purchased

440,881



68



0.06

%


395,946



76



0.08

%


375,098



194



0.21

%

Borrowings

214,670



866



1.62

%


539,077



1,772



1.33

%


1,163,065



3,839



1.33

%

Junior subordinated debentures

369,812



3,042



3.30

%


343,473



3,052



3.60

%


284,130



3,922



5.55

%

Total interest-bearing liabilities

16,500,106



$

10,992



0.27

%


16,444,694



$

15,578



0.38

%


17,625,888



$

34,177



0.78

%

Non-interest-bearing deposits

10,582,197







9,897,749







8,484,684






Other liabilities

373,704







375,176







441,449






Total liabilities

27,456,007







26,717,619







26,552,021






Common equity

2,700,010







2,674,871







2,514,754






Total liabilities and shareholders' equity

$

30,156,017







$

29,392,490







$

29,066,775






NET INTEREST INCOME



$

230,140







$

221,812







$

212,851




NET INTEREST SPREAD





3.08

%






3.03

%






2.81

%

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





3.20

%






3.18

%






3.09

%

(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 $377,000 for the three months ended June 30, 2021, as compared to $381,000 for March 31, 2021 and $348,000 for June 30, 2020. 

 

Umpqua Holdings Corporation

Average Rates and Balances

(Unaudited)

(dollars in thousands)

Six Months Ended


June 30, 2021


June 30, 2020


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

$

585,611



$

8,570



2.93

%


$

492,577



$

9,707



3.94

%

Loans and leases (1)

21,867,678



436,041



4.01

%


21,815,966



471,460



4.33

%

Taxable securities

3,079,065



28,734



1.87

%


2,768,853



26,866



1.94

%

Non-taxable securities (2)

249,996



3,779



3.02

%


238,505



3,763



3.15

%

Temporary investments and interest-bearing cash

2,660,435



1,398



0.11

%


1,325,627



3,734



0.56

%

Total interest-earning assets

28,442,785



$

478,522



3.38

%


26,641,528



$

515,530



3.88

%

Other assets

1,333,577







2,314,860






Total assets

$

29,776,362







$

28,956,388






INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$

3,256,085



$

873



0.05

%


$

2,560,935



$

4,691



0.37

%

Money market deposits

7,488,195



3,024



0.08

%


7,191,796



15,796



0.44

%

Savings deposits

2,085,874



317



0.03

%


1,557,118



439



0.06

%

Time deposits

2,491,169



13,480



1.09

%


4,439,902



45,586



2.06

%

Total interest-bearing deposits

15,321,323



17,694



0.23

%


15,749,751



66,512



0.85

%

Repurchase agreements and federal funds purchased

418,538



144



0.07

%


356,550



589



0.33

%

Borrowings

375,977



2,638



1.41

%


1,035,553



7,885



1.53

%

Junior subordinated debentures

356,715



6,094



3.44

%


322,842



8,825



5.49

%

Total interest-bearing liabilities

16,472,553



$

26,570



0.33

%


17,464,696



$

83,811



0.96

%

Non-interest-bearing deposits

10,241,863







7,687,002






Other liabilities

374,436







423,273






Total liabilities

27,088,852







25,574,971






Common equity

2,687,510







3,381,417






Total liabilities and shareholders' equity

$

29,776,362







$

28,956,388






NET INTEREST INCOME



$

451,952







$

431,719




NET INTEREST SPREAD





3.05

%






2.92

%

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





3.19

%






3.25

%













(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 $758,000 for the six months ended June 30, 2021, as compared to $681,000 for the same period in 2020. 

 

Umpqua Holdings Corporation

Segments

(Unaudited)

Core Banking

Quarter Ended


% Change

(in thousands)

Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Seq.
Quarter


Year

over
Year

Net interest income

$

226,915



$

217,574



$

230,430



$

212,215



$

208,245



4

%


9

%

(Recapture) provision for credit losses

(22,996)



—



29



(338)



87,085



nm



(126)

%

Non-interest income















Gain (loss) gain on sale of investment securities, net

4



(702)



(173)



(112)



563



(101)

%


(99)

%


(Loss) gain on swap derivatives, net

(4,481)



11,750



3,955



1,765



(823)



(138)

%


444

%


Non-interest income (excluding above items)

50,933



32,403



40,921



39,678



31,697



57

%


61

%


Total non-interest income

46,456



43,451



44,703



41,331



31,437



7

%


48

%

Non-interest expense















Exit and disposal costs

4,728



1,200



725



792



548



294

%


763

%


Non-interest expense (excluding above items)

146,877



145,161



171,634



148,519



141,448



1

%


4

%


Allocated expenses, net (1)

970



(790)



(3,565)



(2,976)



(1,963)



(223)

%


(149)

%


Total non-interest expense

152,575



145,571



168,794



146,335



140,033



5

%


9

%

Income before income taxes

143,792



115,454



106,310



107,549



12,564



25

%


1,044

%

Provision (benefit) for income taxes

35,630



28,106



(13,508)



20,988



(5,544)



27

%


(743)

%

Net income

$

108,162



$

87,348



$

119,818



$

86,561



$

18,108



24

%


497

%
















Effective Tax Rate

25

%


24

%


(13)

%


20

%


(44)

%





Efficiency Ratio

56

%


56

%


61

%


58

%


58

%




















Total assets

$

29,720,182



$

29,529,769



$

28,438,813



$

28,652,477



$

28,942,285



1

%


3

%

Loans held for sale

$

—



$

—



$

78,146



$

—



$

—



0

%


0

%

Total loans and leases

$

22,143,739



$

22,160,860



$

21,779,367



$

22,426,473



$

22,671,455



0

%


(2)

%

Total deposits

$

25,820,776



$

25,425,339



$

24,200,012



$

24,102,498



$

24,421,486



2

%


6

%















Key Rates, end of period:














10 year CMT

1.45

%


1.74

%


0.93

%


0.69

%


0.66

%





FHLMC 30 year fixed

2.98

%


3.18

%


2.67

%


2.88

%


3.13

%





nm = not meaningful














(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.


Umpqua Holdings Corporation

Segments - Continued

(Unaudited)

Mortgage Banking

Quarter Ended


% Change

(in thousands)

Jun 30, 2021


Mar 31, 2021


Dec 31, 2020


Sep 30, 2020


Jun 30, 2020


Seq.
Quarter


Year

over
Year

Net interest income

$

2,848



$

3,857



$

4,477



$

4,359



$

4,258



(26)

%


(33)

%

Provision for credit losses

—



—



—



—



—



nm



nm


Non-interest income















Residential mortgage banking revenue:















Origination and sale

41,367



62,505



83,388



98,703



86,781



(34)

%


(52)

%


Servicing

9,120



9,087



9,497



8,796



8,533



0

%


7

%


Change in fair value of MSR asset:















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

(4,366)



(4,545)



(4,431)



(4,878)



(5,042)



(4)

%


(13)

%


Changes due to valuation inputs or assumptions

(1,678)



(2,014)



(9,426)



(12,244)



(6,395)



(17)

%


(74)

%


Non-interest income (excluding above items)

176



316



229



216



166



(44)

%


6

%


Total non-interest income

44,619



65,349



79,257



90,593



84,043



(32)

%


(47)

%

Non-interest expense















Non-interest expense

37,795



41,231



38,953



40,896



39,914



(8)

%


(5)

%


Allocated expenses, net (1)

(970)



790



3,565



2,976



1,963



(223)

%


(149)

%


Total non-interest expense

36,825



42,021



42,518



43,872



41,877



(12)

%


(12)

%

Income before income taxes

10,642



27,185



41,216



51,080



46,424



(61)

%


(77)

%

Provision for income taxes

2,661



6,796



10,304



12,770



11,606



(61)

%


(77)

%

Net income

$

7,981



$

20,389



$

30,912



$

38,310



$

34,818



(61)

%


(77)

%
















Effective Tax Rate

25

%


25

%


25

%


25

%


25

%





Efficiency Ratio

78

%


61

%


51

%


46

%


47

%



















Total assets

$

564,783



$

506,911



$

796,362



$

784,964



$

702,963



11

%


(20)

%

Loans held for sale

$

429,052



$

376,481



$

688,079



$

683,960



$

605,399



14

%


(29)

%

Total deposits

$

332,777



$

461,494



$

422,189



$

567,285



$

422,892



(28)

%


(21)

%
















LHFS Production Statistics:














Closed loan volume for-sale

1,253,023



1,635,532



1,769,432



1,922,789



1,826,095



(23)

%


(31)

%

Gain on sale margin

3.30

%


3.82

%


4.71

%


5.13

%


4.75

%





Direct LHFS expense

$

25,459



$

31,151



$

33,210



$

35,678



$

34,057



(18)

%


(25)

%

Direct LHFS expenses as % of volume

2.03

%


1.90

%


1.88

%


1.86

%


1.87

%




















MSR Statistics:














Residential mortgage loans serviced for others

12,897,032



13,030,467



13,026,720



12,964,361



12,746,125



(1)

%


1

%

MSR, net

102,699



100,413



92,907



93,248



96,356



2

%


7

%

MSR as % of serviced portfolio

0.80

%


0.77

%


0.71

%


0.72

%


0.76

%




















Key Rates, end of period:














10 year CMT

1.45

%


1.74

%


0.93

%


0.69

%


0.66

%





FHLMC 30 year fixed

2.98

%


3.18

%


2.67

%


2.88

%


3.13

%





nm = not meaningful














(1) 

Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.

 


Umpqua Holdings Corporation

Segments

(Unaudited)

(in thousands)

Core Banking


Mortgage Banking



Six Months Ended


% Change


Six Months Ended


% Change



Jun 30, 2021


Jun 30, 2020


Year over

Year


Jun 30, 2021


Jun 30, 2020


Year over
Year

Net interest income

$

444,489



$

424,351



4.75

%


$

6,705



$

6,687



0.27

%

Provision for credit losses

(22,996)



205,170



(111.21)

%


—



—



nm


Non-interest income













Residential mortgage banking revenue:













Origination and sale

—



—



nm


103,872



126,128



(17.65)

%


Servicing

—



—



nm


18,207



17,413



4.56

%


Change in fair value of MSR asset:













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

—



—



nm


(8,911)



(10,371)



(14.08)

%


Changes due to valuation inputs or assumptions

—



—



nm


(3,692)



(31,753)



(88.37)

%


Gain (loss) on sale of investment securities, net

(698)



1,244



(156.11)

%


—



—



nm



Gain (loss) on swap derivatives, net

7,269



(15,129)



(148.05)

%


—



—



nm



Non-interest income (excluding above items)

83,336



68,285



22.04

%


492



308



59.74

%


Total non-interest income

89,907



54,400



65.27

%


109,968



101,725



8.10

%

Non-interest expense













Goodwill Impairment

—



1,784,936



(100.00)

%


—



—



nm



Exit and disposal costs

5,928



1,072



452.99

%


—



—



nm



Non-interest expense (excluding above items)

292,038



289,344



0.93

%


79,026



69,216



14.17

%


Allocated expenses, net (1)

180



(5,016)



(103.59)

%


(180)



5,016



(103.59)

%


Total non-interest expense

298,146



2,070,336



(85.60)

%


78,846



74,232



6.22

%

Income (loss) before income taxes

259,246



(1,796,755)



(114.43)

%


37,827



34,180



10.67

%

Provision (benefit) for income taxes

63,736



27,901



128.44

%


9,457



8,545



10.67

%

Net income (loss)

$

195,510



$

(1,824,656)



(110.71)

%


$

28,370



$

25,635



10.67

%














Effective Tax Rate

25

%


(2)

%




25

%


25

%



Efficiency Ratio

56

%


432

%




68

%


68

%
















LHFS Production Statistics:












Closed loan volume for-sale







2,888,555



2,974,279




Gain on sale margin







3.60

%


4.24

%



Direct LHFS expense







$

56,610



$

58,102




Direct LHFS expenses as % of volume







1.96

%


1.95

%



nm = not meaningful












(1) 

Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.

1 "Non-GAAP" financial measure.  A reconciliation to the comparable GAAP measurement is provided on page 4.
2 "Non-GAAP" financial measure. A reconciliation to the comparable GAAP measurement is provided on page 4.

 

 

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SOURCE Umpqua Holdings Corporation