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UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2022 RESULTS

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Umpqua Holdings Corporation announced its fourth quarter 2022 results, reporting a net income of $83 million or $0.38 per common share. The operating net income was $99 million, translating to $0.46 per share. Loan balances rose by $648 million (2.5%), while deposits increased by $249 million (0.9%). The net interest margin improved by 13 basis points to 4.01%. Non-interest income grew by $5.4 million, but non-interest expense increased by $17 million primarily due to merger-related costs. The company anticipates closing its merger with Columbia Banking on February 28, 2023.

Positive
  • Net income of $83 million, $0.38 per share.
  • Loan balances increased by $648 million (2.5%).
  • Deposits grew by $249 million (0.9%).
  • Net interest margin improved to 4.01%.
  • Non-interest income increased by $5.4 million.
Negative
  • Non-interest expense rose by $17 million due to merger-related costs.
  • Earnings per share decreased from $0.39 in Q3 to $0.38 in Q4.

Fourth Quarter 2022 Results

  • Net income of $83 million, or $0.38 per common share
  • Operating net income of $99 million, or $0.46 per common share1
  • Loan balances increased $648 million or 2.5%
  • Deposit balances increased $249 million or 0.9%
  • Net interest margin increased 13 basis points to 4.01%

PORTLAND, Ore., Jan. 23, 2023 /PRNewswire/ -- 

 

UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2022 RESULTS

$0.38


$83


13.53 %


13.7 %

4Q22 Net earnings per diluted
common share


4Q22 Net income ($ in millions)


4Q22 Return on avg tangible
common equity ("ROATCE")1


Total risk-based capital ratio
(estimated)

 

CEO Commentary

"Continued growth, outstanding credit quality, and net interest margin expansion again characterize Umpqua's quarterly results and round out what has been an exceptional year for the bank," said Cort O'Haver, President and CEO. "As we look forward to our upcoming merger with Columbia Banking System, which we expect to close on February 28, 2023, I want to thank our teams for their tireless efforts over the past 15 months. Umpqua associates' support of each other and dedicated focus on relationship banking with our customers and within our communities is evidenced by our ability to profitably grow the bank while simultaneously planning for our transformational combination with Columbia."

– Cort O'Haver, President and CEO of Umpqua Holdings Corporation

 

4Q22 HIGHLIGHTS (COMPARED TO 3Q22)



Net Interest Income and NIM

•  Net interest income increased by $18 million or 6% on a quarter-to-quarter basis due to the favorable impact of rising interest rates and higher average earning asset balances.

•  Net interest margin was 4.01%, up 13 basis points from the prior quarter. Total deposit costs were 46 basis points for the quarterly average and 66 basis points on December 31, 2022, compared to 22 basis points on September 30, 2022.



Non-Interest Income and Expense

•  Non-interest income increased by $5.4 million as a smaller loss related to the impact of interest rates on fair value accounting and hedges was partially offset by lower residential mortgage gain-on-sale income.

•  Non-interest expense increased by $17 million due primarily to higher merger-related expenses and a $4.9 million accrual for state and local business taxes captured in other expenses that is not expect to repeat in future quarters.



Credit Quality

•  Net charge-offs were 0.19% of average loans and leases (annualized) and centered in the FinPac portfolio.

•  Provision expense of $33 million compares to $28 million for the prior quarter.

•  Non-performing assets to total assets was 0.18% compared to 0.16% at September 30, 2022.



Capital

•  Estimated total risk-based capital ratio of 13.7% and estimated tier 1 risk-based capital ratio of 11.0%.

•  Declared a quarterly cash dividend of $0.21 per common share on January 11, 2023, payable February 6, 2023, to holders of record as of January 23, 2023.



Notable items

•  Set an expected merger closing date of February 28, 2023 after the close of business, subject to the satisfaction of closing conditions.

•  Structural adjustments within the mortgage banking segment continued as additional changes were announced in January, inclusive of further staff reductions.

 

4Q22 KEY FINANCIAL DATA







PERFORMANCE METRICS

4Q22


3Q22


4Q21

Return on average assets

1.04 %


1.09 %


1.13 %

Return on average tangible common equity1

13.53 %


13.02 %


12.94 %

Operating return on average assets1

1.24 %


1.33 %


1.23 %

Operating return on average tangible common equity1

16.18 %


15.90 %


14.03 %

Net interest margin

4.01 %


3.88 %


3.15 %

Efficiency ratio

57.24 %


56.07 %


63.10 %

Loan to deposit ratio

96.64 %


95.12 %


84.80 %







INCOME STATEMENT

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

4Q22


3Q22


4Q21

Net interest income

$305,479


$287,604


$233,379

Provision (recapture) for credit losses

$32,948


$27,572


($736)

Non-interest income

$34,879


$29,445


$82,738

Non-interest expense

$194,982


$177,964


$199,711

Pre-provision net revenue1

$145,376


$139,085


$116,406

Operating pre-provision net revenue1

$167,094


$163,793


$122,633

Earnings per common share - diluted

$0.38


$0.39


$0.41

Operating earnings per common share - diluted1

$0.46


$0.47


$0.44

Dividends paid per share

$0.21


$0.21


$0.21







BALANCE SHEET

4Q22


3Q22


4Q21

Total assets

      $31.8B


      $31.5B


      $30.6B

Loans and leases

      $26.2B


      $25.5B


      $22.6B

Total deposits

      $27.1B


      $26.8B


      $26.6B

Book value per common share

$11.42


$11.14


$12.69

Tangible book value per share

$11.40


$11.11


$12.65

Tangible book value per share, ex AOCI1

$13.37


$13.18


$12.64

 

Balance Sheet

Total consolidated assets were $31.8 billion as of December 31, 2022, compared to $31.5 billion as of September 30, 2022 and $30.6 billion as of December 31, 2021.  Including secured off-balance sheet lines of credit, total available liquidity was $12.0 billion as of December 31, 2022, representing 38% of total assets and 44% of total deposits.

Gross loans and leases were $26.2 billion as of December 31, 2022, an increase of $648 million from $25.5 billion as of September 30, 2022. The majority of loan categories and business lines contributed to the quarter's net expansion, and new loans added to the portfolio during the fourth quarter have similar underwriting characteristics to existing loan categories, as our Q4 2022 Earnings Presentation details.

Total deposits were $27.1 billion as of December 31, 2022, an increase of $249 million from $26.8 billion as of September 30, 2022. The rising interest rate environment and the impact of inflationary pressures on customer spending contributed to a decline in non-interest bearing demand balances during the quarter that was offset by higher time balances. Brokered balances account for approximately 60% of the quarter's growth in time balances.

Net Interest Income

Net interest income was $305 million for the fourth quarter of 2022, up $18 million from the prior quarter. The increase reflects the favorable impact of higher interest rates on our asset sensitive balance sheet and higher average earning asset balances relative to the prior quarter.

The Company's net interest margin was 4.01% for the fourth quarter of 2022, up 13 basis points from 3.88% for the third quarter of 2022. The increase is primarily attributable to higher earning asset yields that outpaced the rising cost of interest-bearing liabilities. The cost of interest-bearing deposits increased to 0.77% for the fourth quarter of 2022 compared to 0.23% for the third quarter of 2022, and it was 1.07% on December 31, 2022 compared to 0.38% on September 30, 2022. Please refer to the Q4 2022 Earnings Presentation available on our website for additional net interest margin change details and interest rate sensitivity information.

Credit Quality

The allowance for credit losses was $315 million, or 1.21% of loans and leases, as of December 31, 2022, compared to $295 million, or 1.16% of loans and leases, as of September 30, 2022.  The provision for credit losses of $33 million for the fourth quarter of 2022 compares to a provision of $28 million for the third quarter of 2022. The current quarter's provision reflects allowance requirements for changes between the August 2022 and November 2022 economic forecasts used in credit models, which contributed to the quarter's expense; loan portfolio mix changes and performance; and new loan generation. Please refer to the Q4 2022 Earnings Presentation available on our website for additional details related to the allowance for credit losses.

Net charge-offs were 0.19% of average loans and leases (annualized) for the fourth quarter of 2022, compared to 0.11% for the third quarter of 2022. The FinPac portfolio drove the linked-quarter increase in charge-offs as activity has begun to approach normalized levels after several quarters below its historical average. Excluding FinPac, net charge-offs were 0.01% for the fourth quarter of 2022. As of December 31, 2022, non-performing assets were 0.18% of total assets, compared to 0.16% as of September 30, 2022 and 0.17% as of December 31, 2021.

Non-interest Income

Non-interest income was $35 million for the fourth quarter of 2022, up $5.4 million from the prior quarter. The increase was driven by a lower adverse impact from interest rate-related adjustments as a net fair value loss of $8.1 million in the fourth quarter related to cumulative fair value adjustments and MSR hedging activity compares to a net fair value loss of $23 million in the third quarter. The favorable variance was partially offset by lower income from the origination and sale of mortgages.

As detailed in our segment and non-GAAP disclosures, non-interest income for the Core Banking segment includes a fair value gain of $2.1 million for the fourth quarter of 2022 compared to a $25 million fair value loss in the third quarter of 2022. Interest rate changes drive fair value adjustments for equity securities, swap derivatives, and loans carried at fair value. The modest decline in long-term interest rates experienced during the fourth quarter compares to the larger increase in the prior quarter, with the difference in the trajectory and magnitude of the changes accounting for the $27 million linked-quarter variance in fair value adjustments, which is captured in other income. Please refer to the Q4 2022 Earnings Presentation for additional details related to other non-interest income.

Revenue from the origination and sale of residential mortgages was $4.3 million for the fourth quarter of 2022 compared to $10.5 million for the prior quarter. The linked-quarter decline reflects a sequential quarter decrease of $180 million or 45% in for-sale mortgage origination volume and a decline in the home lending gain on sale margin to 1.96% for the fourth quarter of 2022 compared to 2.65% for the prior quarter. Of the current quarter's mortgage production, 89% related to purchase activity, compared to 92% for the prior quarter and 54% for the same period in the prior year. In the fourth quarter of 2022, we recorded a net write down of the MSR asset of $15 million, which includes a $10 million fair value loss related to model inputs. We correspondingly recorded a $0.3 million loss during the quarter related to the MSR hedges put in place in mid-August 2022. An increase in the expected cost of escrow deposits, which is not hedged, was the primary driver of the quarter's decline in the MSR asset value due to model inputs.

Non-interest Expense

Non-interest expense was $195 million for the fourth quarter of 2022, an increase of $17 million from the prior quarter level. The current quarter includes $11.6 million in merger-related expenses, $2.0 million in exit and disposal costs related to store consolidations and back-office lease exits, and a $4.9 million accrual for state and local business taxes captured in other expenses that is not expect to repeat in future quarters. Please refer to the Q4 2022 Earnings Presentation for quarterly expense change details.

Capital

As of December 31, 2022, the Company's tangible book value per common share[1] was $11.40, which compares to $11.11 at September 30, 2022 and $12.65 at December 31, 2021. While rising interest rates drove a decline in the fair value of available-for-sale investment securities and an increase in the fair value of junior subordinated debt between year-end 2021 and year-end 2022, a modest decrease in interest rates during the fourth quarter contributed to a slight reversal of these trends and the linked-quarter increase in tangible book value. These fair value change impacts are captured in accumulated other comprehensive (loss) income ("AOCI"), which was $(427) million at December 31, 2022, compared to $(450) million at September 30, 2022 and $1.8 million at December 31, 2021. Excluding AOCI, tangible book1 of $13.37 at December 31, 2022 compares to $13.18 and $12.64 for the linked-quarter and year-ago periods, respectively.

AOCI has no effect on our regulatory capital ratios as the Company opted to exclude it from our common equity tier 1 capital calculations. The Company's estimated total risk-based capital ratio was 13.7% and its estimated tier 1 risk-based capital ratio was 11.0% as of December 31, 2022. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of December 31, 2022 are estimates, pending completion and filing of the Company's regulatory reports.

Segment Disclosures

Segment disclosures on pages 18-20 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 commercial, retail, and private banking, 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 MSR asset, the quarterly changes in the MSR hedge, and the specific expenses that are related to mortgage banking activities including variable commission expenses.  Revenue and associated expenses related to residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are primarily originated through the Bank's retail consumer (store) and private banking channels. Management periodically updates the allocation methods and assumptions within the current segment structure.

Earnings Conference Call Information

The Company will host its fourth quarter 2022 earnings conference call on January 24, 2023, 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 2022 financial results. Participants may register for the call using the below link to receive dial-in details and their own unique PINs or join the audiocast. It is recommended you join 10 minutes prior to the start time.

Register for the call: https://register.vevent.com/register/BIe0ddbff7399e4e01aaf5599b227fe00d

Join the audiocast: https://edge.media-server.com/mmc/p/tvpg2iae

Access the replay through the Company's investor relations page: https://www.umpquabank.com/investor-relations/ 

About Umpqua Holdings Corporation

Umpqua Holdings Corporation (Nasdaq: UMPQ), headquartered in Lake Oswego, Oregon, is the parent company of Umpqua Bank, an Oregon-based regional bank that operates in Oregon, Washington, California, Idaho, Nevada, Arizona, and Colorado. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company was named #1 in Customer Satisfaction for the Northwest Region in the J.D. Power 2021 U.S. Retail Banking Satisfaction StudySM, and Forbes consistently ranks Umpqua as one of America's Best Banks. The Portland Business Journal has also recognized Umpqua as the Most Admired Financial Services Company in Oregon for 18 consecutive years. In addition to its retail and commercial banking presence, Umpqua Bank owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses. For more information, visit 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. 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 the closing of our pending merger with Columbia Banking System, Inc. and 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, inflation and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality 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; changes in laws or regulations; the ability to complete, or any delays in completing, the proposed transaction between us and Columbia Banking System, Inc.; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the proposed transaction that may impact our ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities; and potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the transaction and integration of the companies. 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.

¹ "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement

 

TABLE INDEX


Page

Consolidated Statements of Operations

7

Consolidated Balance Sheets

9

Financial Highlights

10

Loan & Lease Portfolio Balances and Mix

11

Deposit Balances, Mix, and Select Account Details

13

Credit Quality - Non-performing Assets

14

Credit Quality - Allowance for Credit Losses

15

Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

17

Segments

19

GAAP to Non-GAAP Reconciliation

22

 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)














Quarter Ended


% Change

(In thousands, except per share data)


Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Interest income:















Loans and leases


$     322,350


$     278,830


$     234,674


$     214,404


$     221,501


16 %


46 %

Interest and dividends on investments:















Taxable


18,108


18,175


17,256


18,725


16,566


— %


9 %

Exempt from federal income tax


1,288


1,322


1,369


1,372


1,456


(3) %


(12) %

Dividends


182


86


84


86


102


112 %


78 %

Temporary investments and interest bearing deposits


10,319


5,115


2,919


1,353


1,229


102 %


nm

Total interest income


352,247


303,528


256,302


235,940


240,854


16 %


46 %

Interest expense:















Deposits


31,174


9,090


4,015


3,916


4,357


243 %


nm

Securities sold under agreement to repurchase and federal funds purchased


323


545


66


63


48


(41) %


nm

Borrowings


8,023


798


50


49


51


nm


nm

Junior subordinated debentures


7,248


5,491


4,001


3,149


3,019


32 %


140 %

Total interest expense


46,768


15,924


8,132


7,177


7,475


194 %


nm

Net interest income


305,479


287,604


248,170


228,763


233,379


6 %


31 %

Provision (recapture) for credit losses


32,948


27,572


18,692


4,804


(736)


19 %


nm

Non-interest income:















Service charges on deposits


12,139


12,632


12,011


11,583


11,188


(4) %


9 %

Card-based fees


9,017


9,115


10,530


8,708


9,355


(1) %


(4) %

Brokerage revenue


25


27


27


11


31


(7) %


(19) %

Residential mortgage banking (loss) revenue, net


(1,812)


17,341


30,544


60,786


43,185


(110) %


(104) %

Gain on sale of debt securities, net


—


—


—


2


4


nm


(100) %

Gain (loss) on equity securities, net


284


(2,647)


(2,075)


(2,661)


(466)


nm


nm

Gain on loan and lease sales, net


1,531


1,525


1,303


2,337


4,816


— %


(68) %

BOLI income


2,033


2,023


2,110


2,087


2,101


— %


(3) %

Other income (loss)


11,662


(10,571)


785


(2,884)


12,524


nm


(7) %

Total non-interest income


34,879


29,445


55,235


79,969


82,738


18 %


(58) %

Non-interest expense:















Salaries and employee benefits


107,982


109,164


110,942


113,138


117,477


(1) %


(8) %

Occupancy and equipment, net


34,021


35,042


34,559


34,829


34,310


(3) %


(1) %

Intangible amortization


1,019


1,025


1,026


1,025


1,130


(1) %


(10) %

FDIC assessments


3,487


3,007


2,954


4,516


2,896


16 %


20 %

Merger related expenses


11,637


769


2,672


2,278


15,183


nm


(23) %

Other expenses


36,836


28,957


27,421


26,644


28,715


27 %


28 %

Total non-interest expense


194,982


177,964


179,574


182,430


199,711


10 %


(2) %

Income before provision for income taxes


112,428


111,513


105,139


121,498


117,142


1 %


(4) %

Provision for income taxes


29,464


27,473


26,548


30,341


28,788


7 %


2 %

Net income


$      82,964


$      84,040


$      78,591


$      91,157


$      88,354


(1) %


(6) %
















Weighted average basic shares outstanding


217,054


217,051


217,030


216,782


216,624


— %


— %

Weighted average diluted shares outstanding


217,566


217,386


217,279


217,392


217,356


— %


— %

Earnings per common share – basic


$          0.38


$          0.39


$          0.36


$          0.42


$          0.41


(3) %


(7) %

Earnings per common share – diluted


$          0.38


$          0.39


$          0.36


$          0.42


$          0.41


(3) %


(7) %
















nm = not meaningful















 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)








Year Ended


% Change

(In thousands, except per share data)


Dec 31, 2022


Dec 31, 2021


Year over Year

Interest income:







Loans and leases


$         1,050,258


$            890,515


18 %

Interest and dividends on investments:







Taxable


72,264


60,399


20 %

Exempt from federal income tax


5,351


5,947


(10) %

Dividends


438


1,318


(67) %

Temporary investments and interest bearing deposits


19,706


3,864


410 %

Total interest income


1,148,017


962,043


19 %

Interest expense:







Deposits


48,195


27,151


78 %

Securities sold under agreement to repurchase and federal funds purchased


997


280


256 %

Borrowings


8,920


2,838


214 %

Junior subordinated debentures


19,889


12,127


64 %

Total interest expense


78,001


42,396


84 %

Net interest income


1,070,016


919,647


16 %

Provision (recapture) for credit losses


84,016


(42,651)


nm

Non-interest income:







Service charges on deposits


48,365


42,086


15 %

Card-based fees


37,370


36,114


3 %

Brokerage revenue


90


5,112


(98) %

Residential mortgage banking revenue, net


106,859


186,811


(43) %

Gain on sale of debt securities, net


2


8


(75) %

Loss on equity securities, net


(7,099)


(1,511)


370 %

Gain on loan and lease sales, net


6,696


15,715


(57) %

BOLI income


8,253


8,302


(1) %

Other (loss) income


(1,008)


63,681


(102) %

Total non-interest income


199,528


356,318


(44) %

Non-interest expense:







Salaries and employee benefits


441,226


480,820


(8) %

Occupancy and equipment, net


138,451


137,546


1 %

Intangible amortization


4,095


4,520


(9) %

FDIC assessments


13,964


9,238


51 %

Merger related expenses


17,356


15,183


14 %

Other expenses


119,858


113,149


6 %

Total non-interest expense


734,950


760,456


(3) %

Income before provision for income taxes


450,578


558,160


(19) %

Provision for income taxes


113,826


137,860


(17) %

Net income


$            336,752


$            420,300


(20) %








Weighted average basic shares outstanding


216,980


219,032


(1) %

Weighted average diluted shares outstanding


217,403


219,581


(1) %

Earnings per common share – basic


$                 1.55


$                 1.92


(19) %

Earnings per common share – diluted


$                 1.55


$                 1.91


(19) %








nm = not meaningful







 

Umpqua Holdings Corporation

Consolidated Balance Sheets

(Unaudited)
























% Change

(In thousands, except per share data)

Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq.

Quarter


Year over Year

Assets:














Cash and due from banks

$     327,313


$     321,447


$     315,348


$     307,144


$    222,015


2 %


47 %

Interest bearing cash and temporary investments

967,330


1,232,412


687,233


2,358,292


2,539,606


(22) %


(62) %

Investment securities:














Equity and other, at fair value

72,959


72,277


75,347


78,966


81,214


1 %


(10) %

Available for sale, at fair value

3,196,166


3,136,391


3,416,707


3,638,080


3,870,435


2 %


(17) %

Held to maturity, at amortized cost

2,476


2,547


2,637


2,700


2,744


(3) %


(10) %

Loans held for sale

71,647


148,275


228,889


309,946


353,105


(52) %


(80) %

Loans and leases

26,155,981


25,507,951


24,432,678


22,975,761


22,553,180


3 %


16 %

Allowance for credit losses on loans and leases

(301,135)


(283,065)


(261,111)


(248,564)


(248,412)


6 %


21 %

Net loans and leases

25,854,846


25,224,886


24,171,567


22,727,197


22,304,768


2 %


16 %

Restricted equity securities

47,144


40,993


10,867


10,889


10,916


15 %


332 %

Premises and equipment, net

176,016


165,305


165,196


167,369


171,125


6 %


3 %

Operating lease right-of-use assets

78,598


81,729


87,249


87,333


82,366


(4) %


(5) %

Other intangible assets, net

4,745


5,764


6,789


7,815


8,840


(18) %


(46) %

Residential mortgage servicing rights, at fair value

185,017


196,177


179,558


165,807


123,615


(6) %


50 %

Bank owned life insurance

331,759


329,699


328,764


328,040


327,745


1 %


1 %

Deferred tax asset, net

132,823


128,120


70,134


39,051


—


4 %


nm

Other assets

399,800


385,938


389,409


408,497


542,442


4 %


(26) %

Total assets

$  31,848,639


$  31,471,960


$  30,135,694


$  30,637,126


$  30,640,936


1 %


4 %

Liabilities:














Deposits

$  27,065,612


$  26,817,107


$  26,132,423


$  26,699,587


$  26,594,685


1 %


2 %

Securities sold under agreements to repurchase

308,769


383,569


527,961


499,539


492,247


(20) %


(37) %

Borrowings

906,175


756,214


6,252


6,290


6,329


20 %


nm

Junior subordinated debentures, at fair value

323,639


325,744


321,268


305,719


293,081


(1) %


10 %

Junior subordinated debentures, at amortized cost

87,813


87,870


87,927


87,984


88,041


— %


— %

Operating lease liabilities

91,694


95,512


101,352


101,732


95,427


(4) %


(4) %

Deferred tax liability, net

—


—


—


—


4,353


nm


(100) %

Other liabilities

585,111


588,430


440,235


328,677


317,503


(1) %


84 %

Total liabilities

29,368,813


29,054,446


27,617,418


28,029,528


27,891,666


1 %


5 %

Shareholders' equity:














Common stock

3,450,493


3,448,007


3,445,531


3,443,266


3,444,849


— %


— %

Accumulated deficit

(543,803)


(580,933)


(619,108)


(651,912)


(697,338)


(6) %


(22) %

Accumulated other comprehensive (loss) income

(426,864)


(449,560)


(308,147)


(183,756)


1,759


(5) %


nm

Total shareholders' equity

2,479,826


2,417,514


2,518,276


2,607,598


2,749,270


3 %


(10) %

Total liabilities and shareholders' equity

$  31,848,639


$  31,471,960


$  30,135,694


$  30,637,126


$  30,640,936


1 %


4 %















Common shares outstanding at period end

217,054


217,053


217,049


216,967


216,626


— %


— %

Book value per common share

$         11.42


$         11.14


$         11.60


$         12.02


$        12.69


3 %


(10) %

Tangible book value per common share (1)

$         11.40


$         11.11


$         11.57


$         11.98


$        12.65


3 %


(10) %

Tangible equity - common (1)

$  2,475,081


$  2,411,750


$  2,511,487


$  2,599,783


$ 2,740,430


3 %


(10) %

Tangible common equity to tangible assets (1)

7.77 %


7.66 %


8.34 %


8.49 %


8.95 %


0.11


(1.18)

nm = not meaningful















(1) See GAAP to Non-GAAP Reconciliation.

 

Umpqua Holdings Corporation

Financial Highlights

(Unaudited)



Quarter Ended


% Change



Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Per Common Share Data:















Dividends


$    0.21


$    0.21


$    0.21


$    0.21


$    0.21


0 %


0 %

Book value


$  11.42


$  11.14


$  11.60


$  12.02


$  12.69


3 %


(10) %

Tangible book value (1)


$  11.40


$  11.11


$  11.57


$  11.98


$  12.65


3 %


(10) %

Tangible book value, ex accumulated other comprehensive income (1)


$  13.37


$  13.18


$  12.99


$  12.83


$  12.64


1 %


6 %
















Performance Ratios:















Efficiency ratio


57.24 %


56.07 %


59.12 %


59.02 %


63.10 %


1.17


(5.86)

Pre-provision net revenue (PPNR) ROAA (1)


1.82 %


1.80 %


1.64 %


1.67 %


1.50 %


0.02


0.32

Return on average assets (ROAA)


1.04 %


1.09 %


1.04 %


1.21 %


1.13 %


(0.05)


(0.09)

Return on average common equity


13.50 %


12.99 %


12.20 %


13.62 %


12.90 %


0.51


0.60

Return on average tangible common equity (1)


13.53 %


13.02 %


12.23 %


13.66 %


12.94 %


0.51


0.59
















Performance Ratios - Operating: (1)















Operating efficiency ratio (1)


52.01 %


51.72 %


58.27 %


62.02 %


59.61 %


0.29


(7.60)

Operating PPNR return on average assets (1)


2.10 %


2.12 %


1.66 %


1.43 %


1.58 %


(0.02)


0.52

Operating return on average assets (1)


1.24 %


1.33 %


1.06 %


1.03 %


1.23 %


(0.09)


0.01

Operating return on average common equity (1)


16.14 %


15.86 %


12.46 %


11.58 %


13.98 %


0.28


2.16

Operating return on average tangible common equity (1)


16.18 %


15.90 %


12.49 %


11.62 %


14.03 %


0.28


2.15
















Average Balance Sheet Yields, Rates, & Ratios:















Yield on loans and leases


4.92 %


4.41 %


3.94 %


3.79 %


3.94 %


0.51


0.98

Yield on earning assets (2)


4.62 %


4.10 %


3.53 %


3.24 %


3.25 %


0.52


1.37

Cost of interest bearing deposits


0.77 %


0.23 %


0.11 %


0.10 %


0.11 %


0.54


0.66

Cost of interest bearing liabilities


1.05 %


0.39 %


0.20 %


0.18 %


0.18 %


0.66


0.87

Cost of total deposits


0.46 %


0.14 %


0.06 %


0.06 %


0.06 %


0.32


0.40

Cost of total funding (3)


0.65 %


0.23 %


0.12 %


0.11 %


0.11 %


0.42


0.54

Net interest margin (2)


4.01 %


3.88 %


3.41 %


3.14 %


3.15 %


0.13


0.86

Average interest bearing cash / Average interest earning assets


3.62 %


3.04 %


5.71 %


8.92 %


10.78 %


0.58


(7.16)

Average loans and leases / Average interest earning assets


85.32 %


84.54 %


80.91 %


76.85 %


74.70 %


0.78


10.62

Average loans and leases / Average total deposits


95.85 %


93.55 %


89.23 %


84.77 %


82.12 %


2.30


13.73

Average non-interest bearing deposits / Average total deposits


40.30 %


42.29 %


42.00 %


41.35 %


41.69 %


(1.99)


(1.39)

Average total deposits / Average total funding (3)


94.52 %


96.34 %


96.66 %


96.82 %


96.84 %


(1.82)


(2.32)
















Select Credit & Capital Ratios:















Non-performing loans and leases to total loans and leases


0.22 %


0.20 %


0.18 %


0.18 %


0.23 %


0.02


(0.01)

Non-performing assets to total assets


0.18 %


0.16 %


0.15 %


0.14 %


0.17 %


0.02


0.01

Allowance for credit losses to loans and leases


1.21 %


1.16 %


1.12 %


1.14 %


1.16 %


0.05


0.05

Total risk-based capital ratio (4)


13.7 %


13.2 %


13.5 %


14.0 %


14.3 %


0.50


(0.60)

Common equity tier 1 risk-based capital ratio (4)


11.0 %


10.7 %


11.0 %


11.4 %


11.6 %


0.30


(0.60)


(1) See GAAP to Non-GAAP Reconciliation.

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

(3) Total funding = Total deposits + Total borrowings.

(4) Estimated holding company ratios.

 

 

 

Umpqua Holding Corporation

Financial Highlights

(Unaudited)



Year Ended


% Change



Dec 31, 2022


Dec 31, 2021


Year over Year

Per Common Share Data:







Dividends


$             0.84


$             0.84


— %








Performance Ratios:







Efficiency ratio


57.83 %


59.53 %


(1.70)

Pre-provision net revenue (PPNR) ROAA (1)


1.73 %


1.70 %


0.03

Return on average assets (ROAA)


1.09 %


1.39 %


(0.30)

Return on average common equity


13.07 %


15.56 %


(2.49)

Return on average tangible common equity (1)


13.11 %


15.63 %


(2.52)








Performance Ratios - Operating: (1)







Operating efficiency ratio (1)


55.66 %


58.30 %


(2.64)

Operating PPNR return on average assets (1)


1.83 %


1.73 %


0.10

Operating return on average assets (1)


1.17 %


1.41 %


(0.24)

Operating return on average common equity (1)


13.97 %


15.86 %


(1.89)

Operating return on average tangible common equity (1)


14.00 %


15.93 %


(1.93)








Average Balance Sheet Yields, Rates, & Ratios:







Yield on loans and leases


4.29 %


3.99 %


0.30

Yield on earning assets (2)


3.88 %


3.33 %


0.55

Cost of interest bearing deposits


0.31 %


0.18 %


0.13

Cost of interest bearing liabilities


0.47 %


0.26 %


0.21

Cost of total deposits


0.18 %


0.10 %


0.08

Cost of total funding (3)


0.28 %


0.16 %


0.12

Net interest margin (2)


3.62 %


3.18 %


0.44

Average interest bearing cash / Average interest earning assets


5.28 %


10.15 %


(4.87)

Average loans and leases / Average interest earning assets


81.96 %


75.78 %


6.18

Average loans and leases / Average total deposits


90.91 %


83.77 %


7.14

Average non-interest bearing deposits / Average total deposits


41.48 %


40.76 %


0.72

Average total deposits / Average total funding (3)


96.06 %


96.25 %


(0.19)


(1) See GAAP to Non-GAAP Reconciliation.

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

(3) Total funding = Total deposits + Total borrowings.

 

Umpqua Holdings Corporation

Loan & Lease Portfolio

(Unaudited)


















Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


% 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


$ 3,894,840


$ 3,846,426


$ 3,798,242


$ 3,884,784


$ 3,786,887


1 %


3 %

Owner occupied term, net


2,567,761


2,549,761


2,497,553


2,327,899


2,332,422


1 %


10 %

Multifamily, net


5,285,791


5,090,661


4,768,273


4,323,633


4,051,202


4 %


30 %

Construction & development, net


1,077,346


1,036,931


1,017,297


940,286


890,338


4 %


21 %

Residential development, net


200,838


205,935


194,909


195,308


206,990


(2) %


(3) %

Commercial:















Term, net (1)


3,029,547


3,003,424


2,904,861


2,772,206


3,008,473


1 %


1 %

Lines of credit & other, net


960,054


914,507


920,604


871,483


910,733


5 %


5 %

Leases & equipment finance, net


1,706,172


1,669,817


1,576,144


1,484,252


1,467,676


2 %


16 %

Residential:















Mortgage, net


5,647,035


5,470,624


5,168,457


4,748,266


4,517,266


3 %


25 %

Home equity loans & lines, net


1,631,965


1,565,094


1,415,722


1,250,702


1,197,170


4 %


36 %

   Consumer & other, net


154,632


154,771


170,616


176,942


184,023


— %


(16) %

Total loans and leases, net of deferred fees and costs


$  26,155,981


$  25,507,951


$  24,432,678


$  22,975,761


$  22,553,180


3 %


16 %
















(1)  The Bank participated in the Paycheck 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 the following net PPP loan balances:

Net PPP loan balance


$        24,420


$      37,949


$    101,554


$    172,790


$    380,440


(36) %


(94) %
















Loan and leases mix:















Commercial real estate:















   Non-owner occupied term, net


15 %


15 %


15 %


17 %


17 %





   Owner occupied term, net


10 %


10 %


10 %


10 %


10 %





   Multifamily, net


20 %


20 %


20 %


19 %


18 %





Construction & development, net


4 %


4 %


4 %


4 %


4 %





Residential development, net


1 %


1 %


1 %


1 %


1 %





Commercial:















Term, net


12 %


12 %


12 %


12 %


13 %





Lines of credit & other, net


4 %


4 %


4 %


4 %


4 %





Leases & equipment finance, net


6 %


6 %


6 %


6 %


7 %





Residential:















Mortgage, net


21 %


21 %


21 %


21 %


20 %





Home equity loans & lines, net


6 %


6 %


6 %


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)


















Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


% Change

 (Dollars in thousands)


Amount


Amount


Amount


Amount


Amount


Seq. Quarter


Year over Year

Deposits:















Demand, non-interest bearing


$  10,288,849


$  11,246,358


$  11,129,209


$  11,058,251


$  11,023,724


(9) %


(7) %

Demand, interest bearing


4,080,469


3,903,746


3,723,650


3,955,329


3,774,937


5 %


8 %

Money market


7,721,011


7,601,506


7,284,641


7,572,581


7,611,718


2 %


1 %

Savings


2,265,052


2,455,917


2,446,876


2,429,073


2,375,723


(8) %


(5) %

Time


2,710,231


1,609,580


1,548,047


1,684,353


1,808,583


68 %


50 %

Total


$  27,065,612


$  26,817,107


$  26,132,423


$  26,699,587


$  26,594,685


1 %


2 %
















Total core deposits (1)


$  25,616,010


$  26,292,548


$  25,619,500


$  26,140,993


$  25,964,358


(3) %


(1) %
















Deposit mix:















Demand, non-interest bearing


38 %


42 %


43 %


42 %


41 %





Demand, interest bearing


15 %


15 %


14 %


15 %


14 %





Money market


29 %


28 %


28 %


28 %


29 %





Savings


8 %


9 %


9 %


9 %


9 %





Time


10 %


6 %


6 %


6 %


7 %





Total


100 %


100 %


100 %


100 %


100 %




















Number of open accounts:















Demand, non-interest bearing


430,568


434,347


434,436


428,915


428,181





Demand, interest bearing


57,391


56,698


57,145


63,800


66,010





Money market


55,222


55,712


56,430


56,783


57,222





Savings


157,216


159,008


159,709


160,267


160,449





Time


37,424


32,202


32,103


34,127


35,665





Total


737,821


737,967


739,823


743,892


747,527




















Average balance per account:















Demand, non-interest bearing


$          23.9


$          25.9


$          25.6


$          25.8


$          25.7





Demand, interest bearing


71.1


68.9


65.2


62.0


57.2





Money market


139.8


136.4


129.1


133.4


133.0





Savings


14.4


15.4


15.3


15.2


14.8





Time


72.4


50.0


48.2


49.4


50.7





Total


$          36.7


$          36.3


$          35.3


$          35.9


$          35.6





 

(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)

Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Non-performing assets:














Loans and leases on non-accrual status















Commercial real estate, net

$      5,011


$      5,403


$      5,514


$      5,950


$      5,767


(7) %


(13) %


Commercial, net

25,691


18,652


12,645


12,415


13,098


38 %


96 %


Residential, net

—


—


—


—


—


nm


nm


Consumer & other, net

—


—


—


—


—


nm


nm


Total loans and leases on non-accrual status

30,702


24,055


18,159


18,365


18,865


28 %


63 %

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















Commercial real estate, net

1


1


23


1


1


— %


— %


Commercial, net

7,909


5,143


3,311


8


4,160


54 %


90 %


Residential, net (1)

19,894


21,411


22,340


23,162


27,981


(7) %


(29) %


Consumer & other, net

134


152


196


111


194


(12) %


(31) %


Total loans and leases past due 90+ days and accruing (1)

27,938


26,707


25,870


23,282


32,336


5 %


(14) %

Total non-performing loans and leases

58,640


50,762


44,029


41,647


51,201


16 %


15 %

Other real estate owned

203


—


1,868


1,868


1,868


nm


(89) %

Total non-performing assets

$    58,843


$    50,762


$    45,897


$    43,515


$    53,069


16 %


11 %















Performing restructured loans and leases

$      6,767


$      7,076


$      7,631


$      8,405


$      6,694


(4) %


1 %

Loans and leases past due 31-89 days

$    64,893


$    53,538


$    34,659


$    42,409


$    31,680


21 %


105 %

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

0.25 %


0.21 %


0.14 %


0.18 %


0.14 %


0.04


0.11

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

0.22 %


0.20 %


0.18 %


0.18 %


0.23 %


0.02


(0.01)

Non-performing assets to total assets (1)

0.18 %


0.16 %


0.15 %


0.14 %


0.17 %


0.02


0.01


nm = not meaningful














 

(1)  Excludes certain mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $6.6 million, $1.0 million, and $356,000 at December 31, 2022,  September 30, 2022, and June 30, 2022, respectively.

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

(Dollars in thousands)


Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Allowance for credit losses on loans and leases (ACLLL)















Balance, beginning of period


$ 283,065


$ 261,111


$ 248,564


$ 248,412


$ 257,560


8 %


10 %

Provision (recapture) for credit losses on loans and leases


30,580


28,542


18,787


5,696


(1,751)


7 %


nm

Charge-offs
















Commercial real estate, net


(128)


—


(8)


—


(58)


nm


121 %


Commercial, net


(14,721)


(9,459)


(9,035)


(7,858)


(10,197)


56 %


44 %


Residential, net


(53)


(4)


—


(167)


—


nm


nm


Consumer & other, net


(906)


(929)


(836)


(885)


(675)


(2) %


34 %


Total charge-offs


(15,808)


(10,392)


(9,879)


(8,910)


(10,930)


52 %


45 %

Recoveries
















Commercial real estate, net


163


123


73


25


56


33 %


191 %


Commercial, net


2,708


2,842


2,934


2,545


2,585


(5) %


5 %


Residential, net


24


249


216


173


326


(90) %


(93) %


Consumer & other, net


403


590


416


623


566


(32) %


(29) %


Total recoveries


3,298


3,804


3,639


3,366


3,533


(13) %


(7) %

Net (charge-offs) recoveries
















Commercial real estate, net


35


123


65


25


(2)


(72) %


nm


Commercial, net


(12,013)


(6,617)


(6,101)


(5,313)


(7,612)


82 %


58 %


Residential, net


(29)


245


216


6


326


(112) %


(109) %


Consumer & other, net


(503)


(339)


(420)


(262)


(109)


48 %


361 %


Total charge-offs


(12,510)


(6,588)


(6,240)


(5,544)


(7,397)


90 %


69 %

Balance, end of period


$ 301,135


$ 283,065


$ 261,111


$ 248,564


$ 248,412


6 %


21 %

Reserve for unfunded commitments















Balance, beginning of period


$   11,853


$   12,823


$   12,918


$   12,767


$   11,752


(8) %


1 %

Provision (recapture) for credit losses on unfunded commitments


2,368


(970)


(95)


151


1,015


nm


133 %

Balance, end of period


14,221


11,853


12,823


12,918


12,767


20 %


11 %

Total Allowance for credit losses (ACL)


$ 315,356


$ 294,918


$ 273,934


$ 261,482


$ 261,179


7 %


21 %

















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


0.19 %


0.11 %


0.11 %


0.10 %


0.13 %


0.08


0.06

Recoveries to gross charge-offs


20.86 %


36.61 %


36.84 %


37.78 %


32.32 %


(15.75)


(11.46)

ACLLL to loans and leases


1.15 %


1.11 %


1.07 %


1.08 %


1.10 %


0.04


0.05

ACL to loans and leases


1.21 %


1.16 %


1.12 %


1.14 %


1.16 %


0.05


0.05

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)




Year Ended


% Change

(Dollars in thousands)


Dec 31, 2022


Dec 31, 2021


Year over Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$        248,412


$        328,401


(24) %

Provision (recapture) for credit losses on loans and leases


83,605


(35,132)


nm

Charge-offs








Commercial real estate, net


(136)


(1,144)


(88) %


Commercial, net


(41,073)


(54,425)


(25) %


Residential, net


(224)


(70)


220 %


Consumer & other, net


(3,556)


(3,658)


(3) %


Total charge-offs


(44,989)


(59,297)


(24) %

Recoveries








Commercial real estate, net


384


645


(40) %


Commercial, net


11,029


10,703


3 %


Residential, net


662


924


(28) %


Consumer & other, net


2,032


2,168


(6) %


Total recoveries


14,107


14,440


(2) %

Net (charge-offs) recoveries








Commercial real estate, net


248


(499)


nm


Commercial, net


(30,044)


(43,722)


(31) %


Residential, net


438


854


(49) %


Consumer & other, net


(1,524)


(1,490)


2 %


Total charge-offs


(30,882)


(44,857)


(31) %

Balance, end of period


$        301,135


$        248,412


21 %

Reserve for unfunded commitments







Balance, beginning of period


$          12,767


$          20,286


(37) %

Provision (recapture) for credit losses on unfunded commitments


1,454


(7,519)


nm

Balance, end of period


14,221


12,767


11 %

Total Allowance for credit losses (ACL)


$        315,356


$        261,179


21 %









Net charge-offs to average loans and leases


0.13 %


0.20 %


(0.07)

Recoveries to gross charge-offs


31.36 %


24.35 %


7.01

nm = not meaningful







 

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)


Quarter Ended


December 31, 2022


September 30, 2022


December 31, 2021

(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

$     110,850


$    1,603


5.79 %


$     173,397


$    2,205


5.09 %


$     366,043


$    2,907


3.18 %

Loans and leases (1)

25,855,556


320,747


4.92 %


24,886,203


276,625


4.41 %


22,098,818


218,594


3.94 %

Taxable securities

3,042,044


18,290


2.40 %


3,271,185


18,261


2.23 %


3,681,650


16,668


1.81 %

Non-taxable securities (2)

200,825


1,571


3.13 %


212,847


1,651


3.10 %


247,183


1,831


2.96 %

Temporary investments and interest-bearing cash

1,095,854


10,319


3.74 %


893,471


5,115


2.27 %


3,190,380


1,229


0.15 %

Total interest-earning assets

30,305,129


$  352,530


4.62 %


29,437,103


$  303,857


4.10 %


29,584,074


$  241,229


3.25 %

Other assets

1,332,361






1,231,074






1,302,304





Total assets

$  31,637,490






$  30,668,177






$  30,886,378





INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$  4,005,643


$    5,372


0.53 %


$  3,829,688


$    1,705


0.18 %


$  3,765,212


$       524


0.06 %

Money market deposits

7,651,974


17,473


0.91 %


7,550,791


5,817


0.31 %


7,717,844


1,448


0.07 %

Savings deposits

2,345,564


226


0.04 %


2,468,187


250


0.04 %


2,342,865


206


0.03 %

Time deposits

2,100,803


8,103


1.53 %


1,501,724


1,318


0.35 %


1,864,949


2,179


0.46 %

Total interest-bearing deposits

16,103,984


31,174


0.77 %


15,350,390


9,090


0.23 %


15,690,870


4,357


0.11 %

Repurchase agreements and federal funds purchased

354,624


323


0.36 %


509,559


545


0.42 %


484,891


48


0.04 %

Borrowings

796,414


8,023


4.00 %


90,475


798


3.50 %


6,353


51


3.19 %

Junior subordinated debentures

413,708


7,248


6.95 %


409,151


5,491


5.33 %


387,471


3,019


3.09 %

Total interest-bearing liabilities

17,668,730


$  46,768


1.05 %


16,359,575


$  15,924


0.39 %


16,569,585


$    7,475


0.18 %

Non-interest-bearing deposits

10,870,842






11,250,764






11,219,766





Other liabilities

659,279






490,572






379,274





Total liabilities

29,198,851






28,100,911






28,168,625





Common equity

2,438,639






2,567,266






2,717,753





Total liabilities and shareholders' equity

$  31,637,490






$  30,668,177






$  30,886,378





NET INTEREST INCOME



$  305,762






$  287,933






$  233,754



NET INTEREST SPREAD





3.57 %






3.71 %






3.07 %

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





4.01 %






3.88 %






3.15 %


(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 $283,000 for the three months ended December 31, 2022 as compared to $329,000 for the three months ended September 30, 2022 and $375,000 for the three months ended December 31, 2021. 

 

 

Umpqua Holdings Corporation

Average Rates and Balances

(Unaudited)


Year Ended


December 31, 2022


December 31, 2021

(Dollars in thousands)

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

$        208,141


$        8,812


4.23 %


$        500,070


$      15,149


3.03 %

Loans and leases (1)

24,225,518


1,041,446


4.29 %


21,925,108


875,366


3.99 %

Taxable securities

3,343,721


72,702


2.17 %


3,321,142


61,717


1.86 %

Non-taxable securities (2)

216,943


6,669


3.07 %


248,256


7,458


3.00 %

Temporary investments and interest-bearing cash

1,561,808


19,706


1.26 %


2,936,273


3,864


0.13 %

Total interest-earning assets

29,556,131


$ 1,149,335


3.88 %


28,930,849


$    963,554


3.33 %

Other assets

1,261,265






1,336,523





Total assets

$   30,817,396






$   30,267,372





INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$     3,886,390


$        8,185


0.21 %


$     3,462,035


$        1,865


0.05 %

Money market deposits

7,552,666


26,415


0.35 %


7,624,707


5,964


0.08 %

Savings deposits

2,411,448


880


0.04 %


2,200,608


729


0.03 %

Time deposits

1,743,988


12,715


0.73 %


2,217,464


18,593


0.84 %

Total interest-bearing deposits

15,594,492


48,195


0.31 %


15,504,814


27,151


0.18 %

Repurchase agreements and federal funds purchased

465,600


997


0.21 %


454,994


280


0.06 %

Borrowings

226,665


8,920


3.94 %


195,985


2,838


1.45 %

Junior subordinated debentures

399,568


19,889


4.98 %


369,259


12,127


3.28 %

Total interest-bearing liabilities

16,686,325


$      78,001


0.47 %


16,525,052


$      42,396


0.26 %

Non-interest-bearing deposits

11,053,921






10,669,531





Other liabilities

501,573






372,078





Total liabilities

28,241,819






27,566,661





Common equity

2,575,577






2,700,711





Total liabilities and shareholders' equity

$   30,817,396






$   30,267,372





NET INTEREST INCOME



$ 1,071,334






$    921,158



NET INTEREST SPREAD





3.41 %






3.07 %

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





3.62 %






3.18 %

 

Umpqua Holdings Corporation

Segments

(Unaudited)

Core Banking

Quarter Ended


% Change

(Dollars in thousands)

Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Net interest income

$     305,030


$     286,532


$     247,009


$     227,087


$     231,250


6 %


32 %

Provision (recapture) for credit losses

32,948


27,572


18,692


4,804


(736)


19 %


nm

Non-interest income















Gain on sale of debt securities, net

—


—


—


2


4


nm


(100) %


Gain (loss) on equity securities, net

284


(2,647)


(2,075)


(2,661)


(466)


nm


nm


(Loss) gain on swap derivatives, net

(2,329)


4,194


7,337


7,047


(303)


(156) %


nm


Change in fair value of certain loans held for investment

4,192


(26,397)


(15,210)


(21,049)


(2,672)


nm


nm


Non-interest income (excluding above items)

34,362


36,769


34,461


35,650


42,812


(7) %


(20) %


Total non-interest income

36,509


11,919


24,513


18,989


39,375


206 %


(7) %

Non-interest expense















Merger related expenses

11,637


769


2,672


2,278


15,183


nm


(23) %


Exit and disposal costs

1,966


1,364


442


3,033


3,022


44 %


(35) %


Non-interest expense (excluding above items)

167,267


154,320


148,946


148,423


150,587


8 %


11 %


Allocated expenses, net (1)

(1,905)


(39)


3,702


3,735


4,314


nm


(144) %


Total non-interest expense

178,965


156,414


155,762


157,469


173,106


14 %


3 %

Income before income taxes

129,626


114,465


97,068


83,803


98,255


13 %


32 %

Provision for income taxes

33,763


28,212


24,530


20,917


24,067


20 %


40 %

Net income

$       95,863


$       86,253


$       72,538


$       62,886


$       74,188


11 %


29 %

Effective Tax Rate

26 %


25 %


25 %


25 %


24 %





Efficiency Ratio

52 %


52 %


57 %


64 %


64 %





Total assets

$  31,577,603


$  31,100,700


$  29,721,590


$  30,153,079


$  30,155,058


2 %


5 %

Total loans and leases

$  26,155,981


$  25,507,951


$  24,432,678


$  22,975,761


$  22,553,180


3 %


16 %

Total deposits

$  26,937,431


$  26,588,217


$  25,925,294


$  26,479,078


$  26,370,568


1 %


2 %

Key Rates, end of period:














10 year CMT

3.88 %


3.83 %


2.98 %


2.32 %


1.52 %


0.05


2.36

FHLMC 30 year fixed

6.42 %


6.70 %


5.70 %


4.67 %


3.11 %


(0.28)


3.31

nm = not meaningful














(1) Represents the internal charges for 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 - Continued

(Unaudited)

Mortgage Banking

Quarter Ended


% Change

(Dollars in thousands)

Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Net interest income

$            449


$         1,072


$         1,161


$         1,676


$         2,129


(58) %


(79) %

Provision for credit losses

—


—


—


—


—


nm


nm

Non-interest income















Residential mortgage banking revenue:















Origination and sale

4,252


10,515


15,101


16,844


23,624


(60) %


(82) %


Servicing

9,184


9,529


9,505


9,140


9,457


(4) %


(3) %


Change in fair value of MSR asset:















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

(4,986)


(4,978)


(4,961)


(5,347)


(5,311)


— %


(6) %


Changes due to valuation inputs or assumptions

(9,914)


16,403


10,899


40,149


15,415


(160) %


(164) %


MSR hedge loss

(348)


(14,128)


—


—


—


(98) %


nm


Non-interest income (excluding above items)

182


185


178


194


178


(2) %


2 %


Total non-interest income

(1,630)


17,526


30,722


60,980


43,363


(109) %


(104) %

Non-interest expense















Non-interest expense

14,112


21,511


27,514


28,696


30,919


(34) %


(54) %


Allocated expenses, net(1)

1,905


39


(3,702)


(3,735)


(4,314)


nm


nm


Total non-interest expense

16,017


21,550


23,812


24,961


26,605


(26) %


(40) %

Income before income taxes

(17,198)


(2,952)


8,071


37,695


18,887


483 %


(191) %

Provision for income taxes

(4,299)


(739)


2,018


9,424


4,721


482 %


(191) %

Net income

$     (12,899)


$       (2,213)


$         6,053


$       28,271


$       14,166


483 %


(191) %

Effective Tax Rate

25 %


25 %


25 %


25 %


25 %





Efficiency Ratio

nm


116 %


75 %


40 %


58 %





Total assets

$     271,036


$     371,260


$     414,104


$     484,047


$     485,878


(27) %


(44) %

Loans held for sale

$       71,647


$     148,275


$     228,889


$     309,946


$     353,105


(52) %


(80) %

Total deposits

$     128,181


$     228,890


$     207,129


$     220,509


$     224,117


(44) %


(43) %

LHFS Production Statistics:














Closed loan volume for-sale

$     216,833


$     396,979


$     576,532


$     649,122


$     871,268


(45) %


(75) %

Gain on sale margin

1.96 %


2.65 %


2.62 %


2.59 %


2.71 %





Direct LHFS expense

$         7,292


$       10,465


$       13,197


$       14,296


$       18,150


(30) %


(60) %

Direct LHFS expenses as % of volume

3.36 %


2.64 %


2.29 %


2.20 %


2.08 %





MSR Statistics:














Residential mortgage loans serviced for others

$  13,020,189


$  12,997,911


$  12,932,747


$  12,810,574


$  12,755,671


— %


2 %

MSR, net

$     185,017


$     196,177


$     179,558


$     165,807


$     123,615


(6) %


50 %

MSR as % of serviced portfolio

1.42 %


1.51 %


1.39 %


1.29 %


0.97 %


(0.09)


0.45

Key Rates, end of period:














10 year CMT

3.88 %


3.83 %


2.98 %


2.32 %


1.52 %


0.05


2.36

FHLMC 30 year fixed

6.42 %


6.70 %


5.70 %


4.67 %


3.11 %


(0.28)


3.31

nm = not meaningful














(1)

Represents the internal charges for 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)


Core Banking


Mortgage Banking



Year Ended


% Change


Year Ended


% Change

(Dollars in thousands)

Dec 31, 2022


Dec 31, 2021


Year over Year


Dec 31, 2022


Dec 31, 2021


Year over Year

Net interest income

$   1,065,658


$      908,087


17 %


$          4,358


$        11,560


(62) %

Provision (recapture) for credit losses

84,016


(42,651)


nm


—


—


nm

Non-interest income













Residential mortgage banking revenue:













Origination and sale

—


—


nm


46,712


157,789


(70) %


Servicing

—


—


nm


37,358


36,836


1 %


Change in fair value of MSR asset:













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

—


—


nm


(20,272)


(18,903)


7 %


Changes due to valuation inputs or assumptions

—


—


nm


57,537


11,089


419 %


MSR hedge loss

—


—


nm


(14,476)


—


nm


Gain on sale of debt securities, net

2


8


(75) %


—


—


nm


Loss on equity securities, net

(7,099)


(1,511)


370 %


—


—


nm


Gain on swap derivatives, net

16,249


8,395


94 %


—


—


nm


Change in fair value of certain loans held for investment

(58,464)


3,032


nm


—


—


nm


Non-interest income (excluding above items)

141,242


158,725


(11) %


739


858


(14) %


Total non-interest income

91,930


168,649


(45) %


107,598


187,669


(43) %

Non-interest expense













Merger related expenses

17,356


15,183


14 %


—


—


nm


Exit and disposal costs

6,805


12,763


(47) %


—


—


nm


Non-interest expense (excluding above items)

618,956


589,556


5 %


91,833


142,954


(36) %


Allocated expenses, net (1)

5,493


8,174


(33) %


(5,493)


(8,174)


(33) %


Total non-interest expense

648,610


625,676


4 %


86,340


134,780


(36) %

Income before income taxes

424,962


493,711


(14) %


25,616


64,449


(60) %

Provision for income taxes

107,422


121,748


(12) %


6,404


16,112


(60) %

Net income

$      317,540


$      371,963


(15) %


$        19,212


$        48,337


(60) %














Effective Tax Rate

25 %


25 %


—


25 %


25 %


—

Efficiency Ratio

56 %


58 %


(2.00)


77 %


68 %


9.00














LHFS Production Statistics:












Closed loan volume for-sale







$   1,839,466


$   4,747,104


(61) %

Gain on sale margin







2.54 %


3.32 %


(0.78)

Direct LHFS expense







$        45,250


$        94,718


(52) %

Direct LHFS expenses as % of volume







2.46 %


2.00 %


0.46

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.

 

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 presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation

(Unaudited)




Quarter Ended


% Change

(Dollars in thousands, except per share
data)



Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Total shareholders' equity

a


$                   2,479,826


$                   2,417,514


$                   2,518,276


$                   2,607,598


$                   2,749,270


3 %


(10) %

Less: Other intangible assets, net



4,745


5,764


6,789


7,815


8,840


(18) %


(46) %

Tangible common shareholders' equity

b


$                   2,475,081


$                   2,411,750


$                   2,511,487


$                   2,599,783


$                   2,740,430


3 %


(10) %

Less: Accumulated other comprehensive income (AOCI)



$                 (426,864)


(449,560)


(308,147)


(183,756)


1,759


(5) %


nm

Tangible common shareholders' equity, ex AOCI

c


$                   2,901,945


$                   2,861,310


$                   2,819,634


$                   2,783,539


$                   2,738,671


1 %


6 %

















Total assets

d


$  31,848,639


$  31,471,960


$  30,135,694


$  30,637,126


$  30,640,936


1 %


4 %

Less: Other intangible assets, net



4,745


5,764


6,789


7,815


8,840


(18) %


(46) %

Tangible assets

e


$  31,843,894


$  31,466,196


$  30,128,905


$  30,629,311


$  30,632,096


1 %


4 %

Common shares outstanding at period end

f


217,054


217,053


217,049


216,967


216,626


— %


— %

















Total shareholders' equity to total assets ratio

a / d


7.79 %


7.68 %


8.36 %


8.51 %


8.97 %


0.11


(1.18)

Tangible common equity ratio

b / e


7.77 %


7.66 %


8.34 %


8.49 %


8.95 %


0.11


(1.18)

Tangible common equity ratio, ex AOCI

c / e


9.11 %


9.09 %


9.36 %


9.09 %


8.94 %


0.02


0.17

Book value per common share

a / f


$     11.42


$     11.14


$     11.60


$     12.02


$     12.69


3 %


(10) %

Tangible book value per common share

b / f


$     11.40


$     11.11


$     11.57


$     11.98


$     12.65


3 %


(10) %

Tangible book value per common share, ex AOCI

c / f


$     13.37


$     13.18


$     12.99


$     12.83


$     12.64


1 %


6 %

nm = not meaningful
















 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Consolidated



Quarter Ended


% Change

(Dollars in thousands)



Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Non-Interest Income Adjustments
















Gain on sale of debt securities, net



$            —


$            —


$            —


$              2


$              4


nm


(100) %

Gain (loss) on equity securities, net



284


(2,647)


(2,075)


(2,661)


(466)


nm


nm

(Loss) gain on swap derivatives



(2,329)


4,194


7,337


7,047


(303)


(156) %


nm

Change in fair value of certain loans held for investment



4,192


(26,397)


(15,210)


(21,049)


(2,672)


nm


nm

Change in fair value of MSR due to valuation inputs or assumptions



(9,914)


16,403


10,899


40,149


15,415


(160) %


(164) %

MSR hedge loss



(348)


(14,128)


—


—


—


(98) %


nm

Total non-interest income adjustments

a


$      (8,115)


$    (22,575)


$          951


$     23,488


$     11,978


(64) %


(168) %

















Non-Interest Expense Adjustments
















Merger related expenses



$     11,637


$          769


$       2,672


$       2,278


$     15,183


nm


(23) %

Exit and disposal costs



1,966


1,364


442


3,033


3,022


44 %


(35) %

Total non-interest expense adjustments

b


$     13,603


$       2,133


$       3,114


$       5,311


$     18,205


nm


(25) %

















Net interest income (1)

c


$   305,762


$   287,933


$   248,522


$   229,117


$   233,754


6 %


31 %

















Non-interest income (GAAP)

d


$     34,879


$     29,445


$     55,235


$     79,969


$     82,738


18 %


(58) %

Less: Non-interest income adjustments

a


8,115


22,575


(951)


(23,488)


(11,978)


(64) %


nm

Operating non-interest income (non-GAAP)

e


$     42,994


$     52,020


$     54,284


$     56,481


$     70,760


(17) %


(39) %

















Revenue (GAAP) (1)

f=c+d


$   340,641


$   317,378


$   303,757


$   309,086


$   316,492


7 %


8 %

Operating revenue (non-GAAP)  (1)

g=c+e


$   348,756


$   339,953


$   302,806


$   285,598


$   304,514


3 %


15 %

















Non-interest expense (GAAP)

h


$   194,982


$   177,964


$   179,574


$   182,430


$   199,711


10 %


(2) %

Less: Non-interest expense adjustments

b


(13,603)


(2,133)


(3,114)


(5,311)


(18,205)


nm


(25) %

Operating non-interest expense (non-GAAP)

i


$   181,379


$   175,831


$   176,460


$   177,119


$   181,506


3 %


— %

















Net income (GAAP)

j


$     82,964


$     84,040


$     78,591


$     91,157


$     88,354


(1) %


(6) %

Provision for income taxes



29,464


27,473


26,548


30,341


28,788


7 %


2 %

Income before provision for income taxes



112,428


111,513


105,139


121,498


117,142


1 %


(4) %

Provision (recapture) for credit losses



32,948


27,572


18,692


4,804


(736)


19 %


nm

Pre-provision net revenue (PPNR) (non-GAAP)

k


145,376


139,085


123,831


126,302


116,406


5 %


25 %

Less: Non-interest income adjustments

a


8,115


22,575


(951)


(23,488)


(11,978)


(64) %


nm

Add: Non-interest expense adjustments

b


13,603


2,133


3,114


5,311


18,205


nm


(25) %

Operating PPNR (non-GAAP)

l


$   167,094


$   163,793


$   125,994


$   108,125


$   122,633


2 %


36 %

















Net income (GAAP)

j


$     82,964


$     84,040


$     78,591


$     91,157


$     88,354


(1) %


(6) %

Less: Non-interest income adjustments

a


8,115


22,575


(951)


(23,488)


(11,978)


(64) %


nm

Add: Non-interest expense adjustments

b


13,603


2,133


3,114


5,311


18,205


nm


(25) %

Tax effect of adjustments



(5,459)


(6,116)


(480)


4,576


1,190


(11) %


nm

Operating net income (non-GAAP)

m


$     99,223


$   102,632


$     80,274


$     77,556


$     95,771


(3) %


4 %

nm = not meaningful















(1)

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

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Consolidated



Quarter Ended


% Change

(Dollars in thousands, except per share
data)



Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Average assets

n


$  31,637,490


$  30,668,177


$  30,356,903


$  30,597,413


$  30,886,378


3 %


2 %

Less: Average goodwill and other intangible assets, net



5,298


6,343


7,379


8,407


9,491


(16) %


(44) %

Average tangible assets

o


$  31,632,192


$  30,661,834


$  30,349,524


$  30,589,006


$  30,876,887


3 %


2 %

















Average common shareholders' equity

p


$                   2,438,639


$                   2,567,266


$                   2,584,836


$                   2,715,059


$                   2,717,753


(5) %


(10) %

Less: Average goodwill and other intangible assets, net



5,298


6,343


7,379


8,407


9,491


(16) %


(44) %

Average tangible common equity

q


$                   2,433,341


$                   2,560,923


$                   2,577,457


$                   2,706,652


$                   2,708,262


(5) %


(10) %

















Weighted average basic shares outstanding

r


217,054


217,051


217,030


216,782


216,624


— %


— %

Weighted average diluted shares outstanding

s


217,566


217,386


217,279


217,392


217,356


— %


— %

















Select Per-Share & Performance Metrics
















Earnings-per-share - basic

j / r


$      0.38


$      0.39


$      0.36


$      0.42


$      0.41


(3) %


(7) %

Earnings-per-share - diluted

j / s


$      0.38


$      0.39


$      0.36


$      0.42


$      0.41


(3) %


(7) %

Efficiency ratio

h / f


57.24 %


56.07 %


59.12 %


59.02 %


63.10 %


1.17


(5.86)

PPNR return on average assets

k / n


1.82 %


1.80 %


1.64 %


1.67 %


1.50 %


0.02


0.32

Return on average assets

j / n


1.04 %


1.09 %


1.04 %


1.21 %


1.13 %


(0.05)


(0.09)

Return on average tangible assets

j / o


1.04 %


1.09 %


1.04 %


1.21 %


1.14 %


(0.05)


(0.10)

Return on average common equity

j / p


13.50 %


12.99 %


12.20 %


13.62 %


12.90 %


0.51


0.60

Return on average tangible common equity

j / q


13.53 %


13.02 %


12.23 %


13.66 %


12.94 %


0.51


0.59

















Operating Per-Share & Performance Metrics
















Operating earnings-per-share - basic

m / r


$      0.46


$      0.47


$      0.37


$      0.36


$      0.44


(2) %


5 %

Operating earnings-per-share - diluted

m / s


$      0.46


$      0.47


$      0.37


$      0.36


$      0.44


(2) %


5 %

Operating efficiency ratio

i / g


52.01 %


51.72 %


58.27 %


62.02 %


59.61 %


0.29


(7.60)

Operating PPNR return on average assets

l / n


2.10 %


2.12 %


1.66 %


1.43 %


1.58 %


(0.02)


0.52

Operating return on average assets

m / n


1.24 %


1.33 %


1.06 %


1.03 %


1.23 %


(0.09)


0.01

Operating return on average tangible assets

m / o


1.24 %


1.33 %


1.06 %


1.03 %


1.23 %


(0.09)


0.01

Operating return on average common equity

m / p


16.14 %


15.86 %


12.46 %


11.58 %


13.98 %


0.28


2.16

Operating return on average tangible common equity

m / q


16.18 %


15.90 %


12.49 %


11.62 %


14.03 %


0.28


2.15

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Core Banking



Quarter Ended


% Change

(Dollars in thousands)



Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Non-Interest Income Adjustments
















Gain on sale of debt securities, net



$       —


$       —


$       —


$           2


$           4


nm


(100) %

Gain (loss) on equity securities, net



284


(2,647)


(2,075)


(2,661)


(466)


nm


nm

(Loss) gain on swap derivatives



(2,329)


4,194


7,337


7,047


(303)


(156) %


nm

Change in fair value of certain loans held for investment



4,192


(26,397)


(15,210)


(21,049)


(2,672)


nm


nm

Total non-interest income adjustments

a


$  2,147


$ (24,850)


$ (9,948)


$ (16,661)


$   (3,437)


nm


nm

















Non-Interest Expense Adjustments
















Merger related expenses



$ 11,637


$     769


$  2,672


$    2,278


$  15,183


nm


(23) %

Exit and disposal costs



1,966


1,364


442


3,033


3,022


44 %


(35) %

Total non-interest expense adjustments

b


$ 13,603


$  2,133


$  3,114


$    5,311


$  18,205


nm


(25) %

















Net interest income (1)

c


$  305,313


$  286,861


$  247,361


$ 227,441


$ 231,625


6 %


32 %

















Non-interest income (GAAP)

d


$ 36,509


$ 11,919


$ 24,513


$  18,989


$  39,375


206 %


(7) %

Less: Non-interest income adjustments

a


(2,147)


24,850


9,948


16,661


3,437


(109) %


(162) %

Operating non-interest income (non-GAAP)

e


$ 34,362


$ 36,769


$ 34,461


$  35,650


$  42,812


(7) %


(20) %

















Revenue (GAAP) (1)

f=c+d


$  341,822


$  298,780


$  271,874


$ 246,430


$ 271,000


14 %


26 %

Operating revenue (non-GAAP) (1)

g=c+e


$  339,675


$  323,630


$  281,822


$ 263,091


$ 274,437


5 %


24 %

















Non-interest expense (GAAP) (2)

h


$  178,965


$  156,414


$  155,762


$ 157,469


$ 173,106


14 %


3 %

Less: Non-interest expense adjustments

b


(13,603)


(2,133)


(3,114)


(5,311)


(18,205)


nm


(25) %

Operating non-interest expense (non-GAAP)

i


$  165,362


$  154,281


$  152,648


$ 152,158


$ 154,901


7 %


7 %

















Net income (GAAP)

j


$ 95,863


$ 86,253


$ 72,538


$  62,886


$  74,188


11 %


29 %

Provision for income taxes



33,763


28,212


24,530


20,917


24,067


20 %


40 %

Income before provision for income taxes



129,626


114,465


97,068


83,803


98,255


13 %


32 %

Provision (recapture) for credit losses



32,948


27,572


18,692


4,804


(736)


19 %


nm

Pre-provision net revenue (PPNR) (non-GAAP)

k


162,574


142,037


115,760


88,607


97,519


14 %


67 %

Less: Non-interest income adjustments

a


(2,147)


24,850


9,948


16,661


3,437


(109) %


(162) %

Add: Non-interest expense adjustments

b


13,603


2,133


3,114


5,311


18,205


nm


(25) %

Operating PPNR (non-GAAP)

l


$  174,030


$  169,020


$  128,822


$ 110,579


$ 119,161


3 %


46 %

















Net income (GAAP)

j


$ 95,863


$ 86,253


$ 72,538


$  62,886


$  74,188


11 %


29 %

Less: Non-interest income adjustments

a


(2,147)


24,850


9,948


16,661


3,437


(109) %


(162) %

Add: Non-interest expense adjustments

b


13,603


2,133


3,114


5,311


18,205


nm


(25) %

Tax effect of adjustments



(2,893)


(6,685)


(3,205)


(5,461)


(2,664)


(57) %


9 %

Operating net income (non-GAAP)

m


$  104,426


$  106,551


$ 82,395


$  79,397


$  93,166


(2) %


12 %

















Efficiency ratio

h / f


52.36 %


52.35 %


57.29 %


63.90 %


63.88 %


0.01


(11.52)

Operating efficiency ratio

i / g


48.68 %


47.67 %


54.16 %


57.83 %


56.44 %


1.01


(7.76)

Core Banking net income / Consolidated net income



115.55 %


102.63 %


92.30 %


68.99 %


83.97 %


12.92


31.58

Core Banking operating net income / Consolidated operating net income



105.24 %


103.82 %


102.64 %


102.37 %


97.28 %


1.42


7.96

nm = not meaningful















(1)

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

(2)

Includes adjustments related to allocated expenses between the Core Banking and Mortgage Banking segments.

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Mortgage Banking



Quarter Ended


% Change

(Dollars in thousands)



Dec 31, 2022


Sep 30, 2022


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Seq. Quarter


Year over Year

Non-Interest Income Adjustments
















Change in fair value of MSR due to valuation inputs or assumptions



$ (9,914)


$ 16,403


$ 10,899


$ 40,149


$ 15,415


(160) %


(164) %

   MSR hedge loss



(348)


(14,128)


—


—


—


(98) %


nm

Total non-interest income adjustments

a


$ (10,262)


$  2,275


$ 10,899


$ 40,149


$ 15,415


nm


(167) %

















Total non-interest expense adjustments

b


$       —


$       —


$       —


$       —


$       —


nm


nm

















Net interest income

c


$     449


$  1,072


$  1,161


$  1,676


$  2,129


(58) %


(79) %

















Non-interest income (GAAP)

d


$ (1,630)


$ 17,526


$ 30,722


$ 60,980


$ 43,363


(109) %


(104) %

Less: Non-interest income adjustments

a


10,262


(2,275)


(10,899)


(40,149)


(15,415)


nm


nm

Operating non-interest income (non-GAAP)

e


$  8,632


$ 15,251


$ 19,823


$ 20,831


$ 27,948


(43) %


(69) %

















Revenue (GAAP)

f=c+d


$ (1,181)


$ 18,598


$ 31,883


$ 62,656


$ 45,492


(106) %


(103) %

Operating revenue (non-GAAP)

g=c+e


$  9,081


$ 16,323


$ 20,984


$ 22,507


$ 30,077


(44) %


(70) %

















Non-interest expense (GAAP) (1)

h


$ 16,017


$ 21,550


$ 23,812


$ 24,961


$ 26,605


(26) %


(40) %

Less: Non-interest expense adjustments

b


—


—


—


—


—


nm


nm

Operating non-interest expense (non-GAAP)

i


$ 16,017


$ 21,550


$ 23,812


$ 24,961


$ 26,605


(26) %


(40) %

















Net income (GAAP)

j


$ (12,899)


$ (2,213)


$  6,053


$ 28,271


$ 14,166


483 %


(191) %

Provision for income taxes



(4,299)


(739)


2,018


9,424


4,721


482 %


(191) %

Income before provision for income taxes



(17,198)


(2,952)


8,071


37,695


18,887


483 %


(191) %

Provision for credit losses



—


—


—


—


—


nm


nm

Pre-provision net revenue (PPNR) (non-GAAP)

k


(17,198)


(2,952)


8,071


37,695


18,887


483 %


(191) %

Less: Non-interest income adjustments

a


10,262


(2,275)


(10,899)


(40,149)


(15,415)


nm


nm

Add: Non-interest expense adjustments

b


—


—


—


—


—


nm


nm

Operating PPNR (non-GAAP)

l


$ (6,936)


$ (5,227)


$ (2,828)


$ (2,454)


$  3,472


33 %


(300) %

















Net income (GAAP)

j


$ (12,899)


$ (2,213)


$  6,053


$ 28,271


$ 14,166


483 %


(191) %

Less: Non-interest income adjustments

a


10,262


(2,275)


(10,899)


(40,149)


(15,415)


nm


nm

Add: Non-interest expense adjustments

b


—


—


—


—


—


nm


nm

Tax effect of adjustments



(2,566)


569


2,725


10,037


3,854


nm


(167) %

Operating net income (non-GAAP)

m


$ (5,203)


$ (3,919)


$ (2,121)


$ (1,841)


$  2,605


33 %


(300) %

















Efficiency ratio

h / f


nm


115.87 %


74.69 %


39.84 %


58.48 %


nm


nm

Operating efficiency ratio

i / g


176.38 %


132.02 %


113.48 %


110.90 %


88.46 %


34 %


99 %

Mortgage Banking net income / Consolidated net income



(15.55) %


(2.63) %


7.70 %


31.01 %


16.03 %


(12.92)


(31.58)

Mortgage Banking operating net income / Consolidated operating net income



(5.24) %


(3.82) %


(2.64) %


(2.37) %


2.72 %


(1.42)


(7.96)

nm = not meaningful















 (1)

Includes adjustments related to allocated expenses between the Core Banking and Mortgage Banking segments.

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Consolidated



Year to Date


% Change

(Dollars in thousands)



Dec 31, 2022


Dec 31, 2021


Year over Year

Non-Interest Income Adjustments








Gain on sale of debt securities, net



$                        2


$                        8


(75) %

Loss on equity securities, net



(7,099)


(1,511)


370 %

Gain on swap derivatives



16,249


8,395


94 %

Change in fair value of certain loans held for investment



(58,464)


3,032


nm

Change in fair value of MSR due to valuation inputs or assumptions



57,537


11,089


419 %

   MSR hedge loss



(14,476)


—


nm

Total non-interest income adjustments

a


$                (6,251)


$                21,013


(130) %









Non-Interest Expense Adjustments








Merger related expenses



$                17,356


$                15,183


14 %

Exit and disposal costs



6,805


12,763


(47) %

Total non-interest expense adjustments

b


$                24,161


$                27,946


(14) %









Net interest income (1)

c


$           1,071,334


$              921,158


16 %









Non-interest income (GAAP)

d


$              199,528


$              356,318


(44) %

Less: Non-interest income adjustments

a


6,251


(21,013)


nm

Operating non-interest income (non-GAAP)

e


$              205,779


$              335,305


(39) %









Revenue (GAAP) (1)

f=c+d


$           1,270,862


$           1,277,476


(1) %

Operating revenue (non-GAAP)  (1)

g=c+e


$           1,277,113


$           1,256,463


2 %









Non-interest expense (GAAP)

h


$              734,950


$              760,456


(3) %

Less: Non-interest expense adjustments

b


(24,161)


(27,946)


(14) %

Operating non-interest expense (non-GAAP)

i


$              710,789


$              732,510


(3) %









Net income (GAAP)

j


$              336,752


$              420,300


(20) %

Provision for income taxes



113,826


137,860


(17) %

Income before provision for income taxes



450,578


558,160


(19) %

Provision (recapture) for credit losses



84,016


(42,651)


nm

Pre-provision net revenue (PPNR) (non-GAAP)

k


534,594


515,509


4 %

Less: Non-interest income adjustments

a


6,251


(21,013)


nm

Add: Non-interest expense adjustments

b


24,161


27,946


(14) %

Operating PPNR (non-GAAP)

l


$              565,006


$              522,442


8 %









Net income (GAAP)

j


$              336,752


$              420,300


(20) %

Less: Non-interest income adjustments

a


6,251


(21,013)


nm

Add: Non-interest expense adjustments

b


24,161


27,946


(14) %

Tax effect of adjustments



(7,479)


1,014


nm

Operating net income (non-GAAP)

m


$              359,685


$              428,247


(16) %

nm = not meaningful







Average assets

n


$         30,817,396


$         30,267,372


2 %

Less: Average goodwill and other intangible assets, net



$                 6,847


$                12,057


(43) %

Average tangible assets

o


$         30,810,549


$         30,255,315


2 %









Average common shareholders' equity

p


$           2,575,577


$           2,700,711


(5) %

Less: Average goodwill and other intangible assets, net



$                 6,847


$                12,057


(43) %

Average tangible common equity

q


$           2,568,730


$           2,688,654


(4) %









Weighted average basic shares outstanding

r


216,980


219,032


(1) %

Weighted average diluted shares outstanding

s


217,403


219,581


(1) %









Select Per-Share & Performance Metrics








Earnings-per-share - basic

j / r


$                   1.55


$                   1.92


(19) %

Earnings-per-share - diluted

j / s


$                   1.55


$                   1.91


(19) %

Efficiency ratio

h / f


57.83 %


59.53 %


(1.70)

PPNR return on average assets

k / n


1.73 %


1.70 %


0.03

Return on average assets

j / n


1.09 %


1.39 %


(0.30)

Return on average tangible assets

j / o


1.09 %


1.39 %


(0.30)

Return on average common equity

j / p


13.07 %


15.56 %


(2.49)

Return on average tangible common equity

j / q


13.11 %


15.63 %


(2.52)









Operating Per-Share & Performance Metrics








Operating earnings-per-share - basic

m / r


$                   1.66


$                   1.96


(15) %

Operating earnings-per-share - diluted

m / s


$                   1.65


$                   1.95


(15) %

Operating efficiency ratio

i / g


55.66 %


58.30 %


(2.64)

Operating PPNR return on average assets

l / n


1.83 %


1.73 %


0.10

Operating return on average assets

m / n


1.17 %


1.41 %


(0.24)

Operating return on average tangible assets

m / o


1.17 %


1.42 %


(0.25)

Operating return on average common equity

m / p


13.97 %


15.86 %


(1.89)

Operating return on average tangible common equity

m / q


14.00 %


15.93 %


(1.93)

(1)

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

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)









Core Banking



Year to Date


% Change

(Dollars in thousands)



Dec 31, 2022


Dec 31, 2021


Year over Year

Non-Interest Income Adjustments








Gain on sale of debt securities, net



$                        2


$                        8


(75) %

Loss on equity securities, net



(7,099)


(1,511)


370 %

Gain on swap derivatives



16,249


8,395


94 %

Change in fair value of certain loans held for investment



(58,464)


3,032


nm

Total non-interest income adjustments

a


$              (49,312)


$                 9,924


nm









Non-Interest Expense Adjustments








Merger related expenses



$                17,356


$                15,183


14 %

Exit and disposal costs



6,805


12,763


(47) %

Total non-interest expense adjustments

b


$                24,161


$                27,946


(14) %









Net interest income (1)

c


$           1,066,976


$              909,598


17 %









Non-interest income (GAAP)

d


$                91,930


$              168,649


(45) %

Less: Non-interest income adjustments

a


49,312


(9,924)


nm

Operating non-interest income (non-GAAP)

e


$              141,242


$              158,725


(11) %









Revenue (GAAP) (1)

f=c+d


$           1,158,906


$           1,078,247


7 %

Operating revenue (non-GAAP) (1)

g=c+e


$           1,208,218


$           1,068,323


13 %









Non-interest expense (GAAP) (2)

h


$              648,610


$              625,676


4 %

Less: Non-interest expense adjustments

b


(24,161)


(27,946)


(14) %

Operating non-interest expense (non-GAAP)

i


$              624,449


$              597,730


4 %









Net income (GAAP)

j


$              317,540


$              371,963


(15) %

Provision for income taxes



107,422


121,748


(12) %

Income before provision for income taxes



424,962


493,711


(14) %

Provision (recapture) for credit losses



84,016


(42,651)


nm

Pre-provision net revenue (PPNR) (non-GAAP)

k


508,978


451,060


13 %

Less: Non-interest income adjustments

a


49,312


(9,924)


nm

Add: Non-interest expense adjustments

b


24,161


27,946


(14) %

Operating PPNR (non-GAAP)

l


$              582,451


$              469,082


24 %









Net income (GAAP)

j


$              317,540


$              371,963


(15) %

Less: Non-interest income adjustments

a


49,312


(9,924)


nm

Add: Non-interest expense adjustments

b


24,161


27,946


(14) %

Tax effect of adjustments



(18,244)


(1,758)


nm

Operating net income (non-GAAP)

m


$              372,769


$              388,227


(4) %









Efficiency ratio

h / f


55.97 %


58.03 %


(2.06)

Operating efficiency ratio

i / g


51.68 %


55.95 %


(4.27)

Core Banking net income / Consolidated net income



94.29 %


88.50 %


5.79

Core Banking operating net income / Consolidated operating net income



103.64 %


90.65 %


12.99

nm = not meaningful







 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Mortgage Banking



Year to Date


% Change

(Dollars in thousands)



Dec 31, 2022


Dec 31, 2021


Year over Year

Non-Interest Income Adjustments








Change in fair value of MSR due to valuation inputs or assumptions



$                57,537


$                11,089


419 %

   MSR hedge loss



(14,476)


—


nm

Total non-interest income adjustments

a


$                43,061


$                11,089


288 %









Total non-interest expense adjustments

b


$                      —


$                      —


nm









Net interest income

c


$                 4,358


$                11,560


(62) %









Non-interest income (GAAP)

d


$              107,598


$              187,669


(43) %

Less: Non-interest income adjustments

a


(43,061)


(11,089)


288 %

Operating non-interest income (non-GAAP)

e


$                64,537


$              176,580


(63) %









Revenue (GAAP)

f=c+d


$              111,956


$              199,229


(44) %

Operating revenue (non-GAAP)

g=c+e


$                68,895


$              188,140


(63) %









Non-interest expense (GAAP) (1)

h


$                86,340


$              134,780


(36) %

Less: Non-interest expense adjustments

b


—


—


nm

Operating non-interest expense (non-GAAP)

i


$                86,340


$              134,780


(36) %









Net income (GAAP)

j


$                19,212


$                48,337


(60) %

Provision for income taxes



6,404


16,112


(60) %

Income before provision for income taxes



25,616


64,449


(60) %

Provision for credit losses



—


—


nm

Pre-provision net revenue (PPNR) (non-GAAP)

k


25,616


64,449


(60) %

Less: Non-interest income adjustments

a


(43,061)


(11,089)


288 %

Add: Non-interest expense adjustments

b


—


—


nm

Operating PPNR (non-GAAP)

l


$              (17,445)


$                53,360


(133) %









Net income (GAAP)

j


$                19,212


$                48,337


(60) %

Less: Non-interest income adjustments

a


(43,061)


(11,089)


288 %

Add: Non-interest expense adjustments

b


—


—


nm

Tax effect of adjustments



10,765


2,772


288 %

Operating net income (non-GAAP)

m


$              (13,084)


$                40,020


(133) %









Efficiency ratio

h / f


77.12 %


67.65 %


9.47

Operating efficiency ratio

i / g


125.32 %


71.64 %


53.68

Mortgage Banking net income / Consolidated net income



5.71 %


11.50 %


(5.79)

Mortgage Banking operating net income / Consolidated operating net income



(3.64) %


9.35 %


(12.99)

nm = not meaningful







 

 

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

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/umpqua-reports-fourth-quarter-and-full-year-2022-results-301728638.html

SOURCE Umpqua Holdings Corporation

FAQ

What were Umpqua's Q4 2022 financial results?

Umpqua reported a net income of $83 million, or $0.38 per share, for Q4 2022.

How much did Umpqua's loan balances increase in Q4 2022?

Loan balances increased by $648 million, or 2.5%, in Q4 2022.

What is Umpqua's net interest margin for Q4 2022?

The net interest margin for Q4 2022 was 4.01%, an increase of 13 basis points.

When is Umpqua's merger with Columbia Banking expected to close?

The merger is expected to close on February 28, 2023.

How did Umpqua's non-interest income change in Q4 2022?

Non-interest income increased by $5.4 million in Q4 2022.

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UMPQ

NASDAQ:UMPQ

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UMPQ Latest News

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Jan 9, 2023
Columbia Banking System and Umpqua Holdings Corporation Announce FDIC Approval and Expected Closing Timeline for Combination
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UMPQUA BANK NAMED OREGON'S MOST ADMIRED FINANCIAL SERVICES COMPANY
Nov 8, 2022
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UMPQ Stock Data

3.83B
214.35M
0.98%
90.03%
2.51%
Banks—Regional
Financial Services
Link
United States
Portland