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.
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, |
Sep 30, |
Jun 30, |
Mar 31, |
Dec 31, |
Seq. |
Year over |
|||||||||||||||||||
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 |
|||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||
% Change |
|||||||||||||||||||||||||
(In thousands, except per share data) |
Dec 31, |
Sep 30, |
Jun 30, |
Mar 31, |
Dec 31, |
Seq. |
Year over |
||||||||||||||||||
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 |
||||||||||||||||||||
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 |
|||||||||||||||
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 |
|||||||||||||||||||||||||
(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 |
|||||||||||
(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 |
||||||||||||||||||||||||||||||||
(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 |
|||||||||||||||||||||
(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 |
||||||||||||||||||||||||||
(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 |
|||||||||||||||||||
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 |
|||||||||||
(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) |
% |
SOURCE Umpqua Holdings Corporation
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