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UMPQUA REPORTS SECOND QUARTER 2022 RESULTS

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Umpqua Holdings Corporation reported strong second-quarter 2022 results, with net income of $78.6 million ($0.36 per share), driven by a $1.5 billion loan increase (6.3%). Operating net income was $80.3 million ($0.37 per share). However, total deposits fell $567.2 million (2.1%), leading to concerns about deposit contraction. Net interest income rose by $19.4 million due to higher rates, with a net interest margin of 3.41%. The provision for credit losses increased to $18.7 million from $4.8 million. The total risk-based capital ratio was estimated at 13.5%.

Positive
  • Net income increased to $78.6 million, or $0.36 per share.
  • Loan balances increased by $1.5 billion, or 6.3%.
  • Net interest income rose by $19.4 million, reflecting favorable rising interest rates.
  • Net interest margin improved to 3.41%, up 27 basis points from the previous quarter.
  • Net charge-offs remained low at 0.11% of average loans.
Negative
  • Total deposits decreased by $567.2 million, or 2.1%.
  • Provision for credit losses increased to $18.7 million from $4.8 million.
  • Non-interest income fell by $24.7 million due to reduced mortgage servicing asset write-ups.

Second quarter 2022 Results

  • Net income of $78.6 million, or $0.36 per common share
  • Operating net income of $80.3 million, or $0.37 per common share1
  • Loan balances increased $1.5 billion or 6.3%
  • Deposit balances decreased $567.2 million or 2.1%
  • Provision for credit losses of $18.7 million

PORTLAND, Ore., July 20, 2022 /PRNewswire/ -- 

UMPQUA REPORTS SECOND QUARTER 2022 RESULTS

$0.36


$79


12.23 %


13.5 %

Net earnings per diluted
common share


Net income ($ in millions)


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


Total risk-based capital ratio
(estimated)

 

CEO Commentary

"Strong loan growth, exceptional credit quality, interest bearing deposit outflow, and net interest margin expansion characterize Umpqua's second quarter results," said Cort O'Haver, President and CEO. "Healthy demand within our footprint, growing momentum from new teams and geographies, and continued dedication from our associates contributed to record net loan growth of $1.5 billion in the quarter, with new generation reflective of existing, conservative portfolio trends. While customer tax payments contributed to deposit contraction, we are seeing expanded balances in the third quarter to date, in line with a more normalized pattern of deposit flows than we experienced over the past two years."

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

 

2Q22 HIGHLIGHTS (COMPARED TO 1Q22)



Net Interest
Income and
NIM

•   Net interest income increased by $19.4 million on a quarter-to-quarter basis due to the favorable impact of rising interest rates and the deployment of cash into loans.

•   Net interest margin was 3.41%, up 27 basis points from the prior quarter. Total deposit costs were 6 basis points for both the quarterly average and the quarter-end spot rate at June 30, 2022, unchanged from the first quarter.



Non-Interest
Income and
Expense

•   Non-interest income decreased by $24.7 million due almost entirely to a smaller write-up of the mortgage servicing asset compared to the first quarter. Fair value adjustments continued to impact mortgage banking revenue and other income given interest rate changes.

•   Non-interest expense decreased by $2.9 million due to lower salaries and employee benefits expense and lower exit and disposal costs, partially offset by higher consulting fees.



Credit
Quality

•   Net charge-offs remained low at 0.11% of average loans and leases (annualized).

•   Provision expense of $18.7 million compares to $4.8 million for the prior quarter. Net portfolio growth and economic forecast changes are the primary drivers of the increase.

•   Non-performing assets to total assets was 0.15%, up 1 basis point from March 31, 2022.



Capital

•   Estimated total risk-based capital ratio of 13.5% and estimated tier 1 risk-based capital ratio of 10.9%.

•   Declared a quarterly cash dividend of $0.21 per common share on July 20, 2022, payable August 15, 2022, to holders of record as of August 1, 2022.



Notable
items

•   Continued due diligence related to previously discussed MSR hedges.

•   $2.7 million in merger-related expenses and $0.4 million in exit and disposal costs.

 

2Q22 KEY FINANCIAL DATA







PERFORMANCE METRICS

2Q22


1Q22


2Q21

Return on average assets

1.04 %


1.21 %


1.54 %

Return on average tangible common equity1

12.23 %


13.66 %


17.33 %

Operating return on average assets1

1.06 %


1.03 %


1.63 %

Operating return on average tangible common equity1

12.49 %


11.62 %


18.24 %

Net interest margin

3.41 %


3.14 %


3.20 %

Efficiency ratio - consolidated

59.12 %


59.02 %


58.96 %

Loan to deposit ratio

93.50 %


86.05 %


84.67 %







INCOME STATEMENT

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

2Q22


1Q22


2Q21

Net interest income

$248,170


$228,763


$229,763

Provision (recapture) for credit losses

$18,692


$4,804


($22,996)

Non-interest income

$55,235


$79,969


$91,075

Non-interest expense

$179,574


$182,430


$189,400

Pre-provision net revenue1

$123,831


$126,302


$131,438

Operating pre-provision net revenue1

$125,994


$108,125


$139,539

Earnings per common share - diluted

$0.36


$0.42


$0.53

Operating earnings per common share - diluted1

$0.37


$0.36


$0.55

Dividends paid per share

$0.21


$0.21


$0.21







BALANCE SHEET

2Q22


1Q22


2Q21

Total assets

      $30.1B


      $30.6B


      $30.3B

Loans and leases

      $24.4B


      $23.0B


      $22.1B

Total deposits

      $26.1B


      $26.7B


      $26.2B

Book value per common share

$11.60


$12.02


$12.54

Tangible book value per share[1]

$11.57


$11.98


$12.49

Tangible book value per share, ex AOCI1

$12.99


$12.83


$12.26

Balance Sheet
Total consolidated assets were $30.1 billion as of June 30, 2022, compared to $30.6 billion as of March 31, 2022 and $30.3 billion as of June 30, 2021.  Including secured off-balance sheet lines of credit, total available liquidity was $14.3 billion as of June 30, 2022, representing 48% of total assets and 55% of total deposits.

Gross loans and leases were $24.4 billion as of June 30, 2022, an increase of $1.5 billion relative to March 31, 2022. Significant activity across business lines, portfolio classes, and geographies contributed to the quarter's substantial growth. Commercial and home equity lines of credit were also additive to portfolio balances as associated utilization rates were up slightly from the prior quarter's levels despite higher commitment balances. New loans added to the portfolio during the second quarter have similar underwriting characteristics to existing loan categories, as our Q2 2022 Earnings Presentation details.

Total deposits were $26.1 billion as of June 30, 2022, a decrease of $567.2 million or 2.1% from $26.7 billion as of March 31, 2022. A continued decline in time deposits and customer tax payments contributed to balance contraction during the quarter.

Net Interest Income
Net interest income was $248.2 million for the second quarter of 2022, up $19.4 million from the prior quarter.  The increase reflects the deployment of cash into loans and the favorable impact of higher interest rates on our asset sensitive balance sheet. Excluding PPP-related income, which contributed only $2.8 million to interest income in the second quarter, net interest income was up $23.4 million from the prior quarter.

The Company's net interest margin was 3.41% for the second quarter of 2022, up 27 basis points from 3.14% for the first quarter of 2022. The increase is attributable to the higher mix of loans as a percentage of earning assets as well as an increase in individual category earning asset yields given upward interest rate movements. The cost of interest-bearing deposits increased one basis point to 0.11% for the second quarter of 2022 compared to the first quarter of 2022, and it was 0.10% on June 30, 2022, as portfolio mix changes during the quarter caused a quarter-end spot rate that was below the second quarter's average rate. Please refer to the Q2 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 $273.9 million, or 1.12% of loans and leases, as of June 30, 2022, compared to $261.5 million, or 1.14% of loans and leases, as of March 31, 2022.  The provision for credit losses of $18.7 million for the second quarter of 2022 compares to a provision of $4.8 million for the first quarter of 2022. The current quarter's provision reflects allowance requirements for new loan generation, changes between the March 2022 and May 2022 economic forecasts used in credit models, and loan mix changes. Please refer to the Q2 2022 Earnings Presentation available on our website for additional details related to the allowance for credit losses.

Net charge-offs were 0.11% of average loans and leases (annualized) for the second quarter of 2022, compared to 0.10% for the first quarter of 2022. Net charge-off activity within the FinPac portfolio continued to remain below its historical average. As of June 30, 2022, non-performing assets were 0.15% of total assets, compared to 0.14% as of March 31, 2022 and 0.17% as of June 30, 2021.

Non-interest Income
Non-interest income was $55.2 million for the second quarter of 2022, down $24.7 million from the prior quarter. The decline was primarily driven by a net fair value gain of $23.5 million in the first quarter related to cumulative fair value adjustments, which compares to a net fair value gain of $1.0 million in the second quarter.  Higher revenue from service charges and card-based fee income offset lower swap and mortgage gain-on-sale revenue.

As detailed in our segment and non-GAAP disclosures, non-interest income for the Core Banking segment includes a fair value loss of $9.9 million for the second quarter of 2022, driven by an increase in long-term interest rates and their effect on fair value adjustments related to investment securities, swap derivatives, and loans carried at fair value. This compares to a fair value loss of $16.7 million in the first quarter of 2022, and the $6.8 million favorable movement in fair value change between periods is primarily captured in other income. Please refer to the Q2 2022 Earnings presentation available on our website for additional details related to other non-interest income.

Revenue from the origination and sale of residential mortgages was $15.1 million for the second quarter of 2022, a decrease of $1.7 million from the prior quarter. This decline reflects a sequential quarter decrease of $72.6 million or 11% in for-sale mortgage origination volume given the impact of rising long-term interest rates.  Of the current quarter's mortgage production, 83% related to purchase activity, compared to 58% for the prior quarter and 56% for the same period of the prior year. While the mortgage banking gain on sale margin increased three basis points from the prior quarter to 2.62% for the second quarter of 2022, it continued to reflect the negative impact from rising rates on the pipeline. Interest rate movements favorably impacted valuation of the MSR asset, resulting in a net write-up during the quarter of $5.9 million, which includes a $10.9 million fair value gain related to model inputs. We continue to work toward putting hedges in place to reduce the volatility of MSR fair value impacts on a net basis in future quarters.

Non-interest Expense
Non-interest expense was $179.6 million for the second quarter of 2022, down $2.9 million from the prior quarter level. The decrease is primarily due to a $2.2 million decline in salaries and employee benefits. The second quarter of 2022 included $2.7 million in merger-related expenses. Please refer to the Q2 2022 Earnings Presentation available on our website for additional quarterly expense change details.

Capital
As of June 30, 2022, the Company's tangible book value per common share2 decreased to $11.57, compared to $11.98 in the prior quarter and $12.49 in the same period of the prior year. Rising interest rates drove a decline in the fair value of available-for-sale investment securities and an increase in junior subordinated debt accounted for at fair value during the quarter. The impact of these items is reflected by a decline in accumulated other comprehensive (loss) income ("AOCI") to $(308.1) million, compared to $(183.8) million at the prior quarter-end and $50.6 million at June 30, 2021. Excluding AOCI, tangible book2 increased to $12.99 at June 30, 2022, compared to $12.83 and $12.26 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 13.5% and its estimated tier 1 risk-based capital ratio was 10.9% as of June 30, 2022. The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of June 30, 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, wealth management, as well as the operations, technology, and administrative functions of the Bank and Holding Company.  The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from our serviced loan portfolio, the quarterly changes to the mortgage servicing rights (MSR) asset, and the specific expenses that are related to mortgage banking activities including variable commission expenses.  Revenue and related expenses for residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for our consumer and wealth channels and are originated through a variety of channels throughout the Company.

Earnings Conference Call Information
The Company will host its second quarter 2022 earnings conference call on July 21, 2022, at 10:00 a.m. PT (1:00 p.m. ET).  During the call, the Company will provide an update on recent activities and discuss its second quarter 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/BI6f2cea3381f84083b34527ba1a684e6b
Join the audiocast: https://edge.media-server.com/mmc/p/udwqefhe
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 Portland, 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 seventeen 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 strategic and growth initiatives and potential MSR hedging activity and the result of such activity. 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.

2 "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

12

Deposit Balances, Mix, and Select Account Details

13

Credit Quality - Non-performing Assets

14

Credit Quality - Allowance for Credit Losses

14

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)

Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.

Quarter


Year
over
Year

Interest income:














Loans and leases

$     234,674


$     214,404


$     221,501


$     224,403


$     223,470


9 %


5 %

Interest and dividends on investments:














  Taxable

17,256


18,725


16,566


16,102


14,619


(8) %


18 %

  Exempt from federal income tax

1,369


1,372


1,456


1,470


1,487


0 %


(8) %

  Dividends

84


86


102


213


405


(2) %


(79) %

Temporary investments and interest bearing deposits

2,919


1,353


1,229


1,237


774


116 %


277 %

  Total interest income

256,302


235,940


240,854


243,425


240,755


9 %


6 %

Interest expense:














Deposits

4,015


3,916


4,357


5,100


7,016


3 %


(43) %

Securities sold under agreement to repurchase and federal funds purchased

66


63


48


88


68


5 %


(3) %

Borrowings

50


49


51


149


866


2 %


(94) %

Junior subordinated debentures

4,001


3,149


3,019


3,014


3,042


27 %


32 %

  Total interest expense

8,132


7,177


7,475


8,351


10,992


13 %


(26) %

Net interest income

248,170


228,763


233,379


235,074


229,763


8 %


8 %

Provision (recapture) for credit losses

18,692


4,804


(736)


(18,919)


(22,996)


289 %


(181) %

Non-interest income:














Service charges on deposits

12,011


11,583


11,188


10,941


10,310


4 %


16 %

Card-based fees

10,530


8,708


9,355


9,111


10,274


21 %


2 %

Brokerage revenue

27


11


31


31


1,135


145 %


(98) %

Residential mortgage banking revenue, net

30,544


60,786


43,185


34,150


44,443


(50) %


(31) %

Gain on sale of debt securities, net

—


2


4


—


—


(100) %


nm

(Loss) gain on equity securities, net

(2,075)


(2,661)


(466)


(343)


4


(22) %


nm

Gain on loan and lease sales, net

1,303


2,337


4,816


4,208


5,318


(44) %


(75) %

BOLI income

2,110


2,087


2,101


2,038


2,092


1 %


1 %

Other income (loss)

785


(2,884)


12,524


13,569


17,499


(127) %


(96) %

Total non-interest income

55,235


79,969


82,738


73,705


91,075


(31) %


(39) %

Non-interest expense:














Salaries and employee benefits

110,942


113,138


117,477


117,636


121,573


(2) %


(9) %

Occupancy and equipment, net

34,559


34,829


34,310


33,944


34,657


(1) %


0 %

Intangible amortization

1,026


1,025


1,130


1,130


1,130


0 %


(9) %

FDIC assessments

2,954


4,516


2,896


2,136


1,607


(35) %


84 %

Merger related expenses

2,672


2,278


15,183


—


—


17 %


nm

Other expenses

27,421


26,644


28,715


28,907


30,433


3 %


(10) %

Total non-interest expense

179,574


182,430


199,711


183,753


189,400


(2) %


(5) %

Income before provision for income taxes

105,139


121,498


117,142


143,945


154,434


(13) %


(32) %

Provision for income taxes

26,548


30,341


28,788


35,879


38,291


(13) %


(31) %

Net income

$       78,591


$       91,157


$       88,354


$     108,066


$     116,143


(14) %


(32) %















Weighted average basic shares outstanding

217,030


216,782


216,624


218,416


220,593


0 %


(2) %

Weighted average diluted shares outstanding

217,279


217,392


217,356


218,978


221,022


0 %


(2) %

Earnings per common share – basic

$           0.36


$           0.42


$           0.41


$           0.49


$           0.53


(14) %


(32) %

Earnings per common share – diluted

$           0.36


$           0.42


$           0.41


$           0.49


$           0.53


(14) %


(32) %















nm = not meaningful














 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)



Six Months Ended


% Change

(In thousands, except per share data)


Jun 30, 2022


Jun 30, 2021


Year over
Year

Interest income:







Loans and leases


$            449,078


$            444,611


1 %

Interest and dividends on investments:







  Taxable


35,981


27,731


30 %

  Exempt from federal income tax


2,741


3,021


(9) %

  Dividends


170


1,003


(83) %

Temporary investments and interest bearing deposits


4,272


1,398


206 %

  Total interest income


492,242


477,764


3 %

Interest expense:







Deposits


7,931


17,694


(55) %

Securities sold under agreement to repurchase and federal funds purchased


129


144


(10) %

Borrowings


99


2,638


(96) %

Junior subordinated debentures


7,150


6,094


17 %

  Total interest expense


15,309


26,570


(42) %

Net interest income


476,933


451,194


6 %

Provision (recapture) for credit losses


23,496


(22,996)


(202) %

Non-interest income:







Service charges on deposits


23,594


19,957


18 %

Card-based fees


19,238


17,648


9 %

Brokerage revenue


38


5,050


(99) %

Residential mortgage banking revenue, net


91,330


109,476


(17) %

Gain on sale of debt securities, net


2


4


(50) %

Loss on equity securities, net


(4,736)


(702)


nm

Gain on loan and lease sales, net


3,640


6,691


(46) %

BOLI income


4,197


4,163


1 %

Other (loss) income


(2,099)


37,588


(106) %

Total non-interest income


135,204


199,875


(32) %

Non-interest expense:







Salaries and employee benefits


224,080


245,707


(9) %

Occupancy and equipment, net


69,388


69,292


0 %

Intangible amortization


2,051


2,260


(9) %

FDIC assessments


7,470


4,206


78 %

Merger related expenses


4,950


—


nm

Other expenses


54,065


55,527


(3) %

Total non-interest expense


362,004


376,992


(4) %

Income before provision for income taxes


226,637


297,073


(24) %

Provision for income taxes


56,889


73,193


(22) %

Net income


$            169,748


$            223,880


(24) %








Weighted average basic shares outstanding


216,906


220,481


(2) %

Weighted average diluted shares outstanding


217,333


220,928


(2) %

Earnings per common share – basic


$                 0.78


$                 1.02


(24) %

Earnings per common share – diluted


$                 0.78


$                 1.01


(23) %








nm = not meaningful







 

Umpqua Holdings Corporation

Consolidated Balance Sheets

(Unaudited)












% Change

(In thousands, except per share data)

Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Seq.

Quarter


Year
over
Year

Assets:














Cash and due from banks

$     315,348


$     307,144


$     222,015


$     395,555


$     397,526


3 %


(21) %

Interest bearing cash and temporary investments

687,233


2,358,292


2,539,606


3,349,034


2,688,285


(71) %


(74) %

Investment securities:














  Equity and other, at fair value

75,347


78,966


81,214


81,575


82,099


(5) %


(8) %

  Available for sale, at fair value

3,416,707


3,638,080


3,870,435


3,723,171


3,473,950


(6) %


(2) %

  Held to maturity, at amortized cost

2,637


2,700


2,744


2,795


2,876


(2) %


(8) %

Loans held for sale

228,889


309,946


353,105


352,466


429,052


(26) %


(47) %

Loans and leases

24,432,678


22,975,761


22,553,180


21,969,940


22,143,739


6 %


10 %

Allowance for credit losses on loans and leases

(261,111)


(248,564)


(248,412)


(257,560)


(279,887)


5 %


(7) %

  Net loans and leases

24,171,567


22,727,197


22,304,768


21,712,380


21,863,852


6 %


11 %

Restricted equity securities

10,867


10,889


10,916


10,946


15,247


0 %


(29) %

Premises and equipment, net

165,196


167,369


171,125


172,624


172,546


(1) %


(4) %

Operating lease right-of-use assets

87,249


87,333


82,366


88,379


95,030


0 %


(8) %

Other intangible assets, net

6,789


7,815


8,840


9,970


11,100


(13) %


(39) %

Residential mortgage servicing rights, at fair value

179,558


165,807


123,615


105,834


102,699


8 %


75 %

Bank owned life insurance

328,764


328,040


327,745


325,646


324,998


0 %


1 %

Deferred tax asset, net

70,134


39,051


—


8,402


—


80 %


nm

Other assets

389,409


408,497


542,442


552,702


625,705


(5) %


(38) %

Total assets

$  30,135,694


$  30,637,126


$  30,640,936


$  30,891,479


$  30,284,965


(2) %


0 %

Liabilities:














Deposits

$  26,132,423


$  26,699,587


$  26,594,685


$  26,908,397


$  26,153,553


(2) %


0 %

Securities sold under agreements to repurchase

527,961


499,539


492,247


467,760


480,302


6 %


10 %

Borrowings

6,252


6,290


6,329


6,367


111,405


(1) %


(94) %

Junior subordinated debentures, at fair value

321,268


305,719


293,081


299,508


287,723


5 %


12 %

Junior subordinated debentures, at amortized cost

87,927


87,984


88,041


88,098


88,155


0 %


0 %

Operating lease liabilities

101,352


101,732


95,427


100,557


106,195


0 %


(5) %

Deferred tax liability, net

—


—


4,353


—


2,497


nm


(100) %

Other liabilities

440,235


328,677


317,503


298,413


288,819


34 %


52 %

  Total liabilities

27,617,418


28,029,528


27,891,666


28,169,100


27,518,649


(1) %


0 %

Shareholders' equity:














Common stock

3,445,531


3,443,266


3,444,849


3,442,085


3,517,641


0 %


(2) %

Accumulated deficit

(619,108)


(651,912)


(697,338)


(739,915)


(801,954)


(5) %


(23) %

Accumulated other comprehensive (loss) income

(308,147)


(183,756)


1,759


20,209


50,629


68 %


nm

  Total shareholders' equity

2,518,276


2,607,598


2,749,270


2,722,379


2,766,316


(3) %


(9) %

Total liabilities and shareholders' equity

$  30,135,694


$  30,637,126


$  30,640,936


$  30,891,479


$  30,284,965


(2) %


0 %















Common shares outstanding at period end

217,049


216,967


216,626


216,622


220,626


0 %


(2) %

Book value per common share

$         11.60


$         12.02


$         12.69


$         12.57


$         12.54


(3) %


(7) %

Tangible book value per common share (1)

$         11.57


$         11.98


$         12.65


$         12.52


$         12.49


(3) %


(7) %

Tangible equity - common (1)

$  2,511,487


$  2,599,783


$  2,740,430


$  2,712,409


$  2,755,216


(3) %


(9) %

Tangible common equity to tangible assets (1)

8.34 %


8.49 %


8.95 %


8.78 %


9.10 %


(0.15)


(0.76)

nm = not meaningful














(1) See GAAP to Non-GAAP Reconciliation.

 

Umpqua Holdings Corporation

Financial Highlights

(Unaudited)



Quarter Ended


% Change



Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
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


$  11.60


$  12.02


$  12.69


$  12.57


$  12.54


(3) %


(7) %

Tangible book value (1)


$  11.57


$  11.98


$  12.65


$  12.52


$  12.49


(3) %


(7) %

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


$  12.99


$  12.83


$  12.64


$  12.43


$  12.26


1 %


6 %
















Performance Ratios:















Efficiency ratio


59.12 %


59.02 %


63.10 %


59.44 %


58.96 %


0.10


0.16

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


1.64 %


1.67 %


1.50 %


1.62 %


1.75 %


(0.03)


(0.11)

Return on average assets (ROAA)


1.04 %


1.21 %


1.13 %


1.40 %


1.54 %


(0.17)


(0.50)

Return on average common equity


12.20 %


13.62 %


12.90 %


15.82 %


17.25 %


(1.42)


(5.05)

Return on average tangible common equity (1)


12.23 %


13.66 %


12.94 %


15.88 %


17.33 %


(1.43)


(5.10)
















Performance Ratios - Operating: (1)















Operating efficiency ratio (1)


58.27 %


62.02 %


59.61 %


58.94 %


56.89 %


(3.75)


1.38

Operating PPNR return on average assets (1)


1.66 %


1.43 %


1.58 %


1.62 %


1.86 %


0.23


(0.20)

Operating return on average assets (1)


1.06 %


1.03 %


1.23 %


1.40 %


1.63 %


0.03


(0.57)

Operating return on average common equity (1)


12.46 %


11.58 %


13.98 %


15.82 %


18.16 %


0.88


(5.70)

Operating return on average tangible common equity (1)


12.49 %


11.62 %


14.03 %


15.88 %


18.24 %


0.87


(5.75)
















Average Balance Sheet Yields, Rates, & Ratios:















Yield on loans and leases


3.94 %


3.79 %


3.94 %


4.02 %


3.99 %


0.15


(0.05)

Yield on earning assets (2)


3.53 %


3.24 %


3.25 %


3.32 %


3.35 %


0.29


0.18

Cost of interest bearing deposits


0.11 %


0.10 %


0.11 %


0.13 %


0.18 %


0.01


(0.07)

Cost of interest bearing liabilities


0.20 %


0.18 %


0.18 %


0.20 %


0.27 %


0.02


(0.07)

Cost of total deposits


0.06 %


0.06 %


0.06 %


0.08 %


0.11 %


—


(0.05)

Cost of total funding (3)


0.12 %


0.11 %


0.11 %


0.12 %


0.16 %


0.01


(0.04)

Net interest margin (2)


3.41 %


3.14 %


3.15 %


3.21 %


3.20 %


0.27


0.21

Average interest bearing cash / Average interest earning assets


5.71 %


8.92 %


10.78 %


11.03 %


9.84 %


(3.21)


(4.13)

Average loans and leases / Average interest earning assets


80.91 %


76.85 %


74.70 %


74.78 %


76.52 %


4.06


4.39

Average loans and leases / Average total deposits


89.23 %


84.77 %


82.12 %


82.07 %


84.59 %


4.46


4.64

Average non-interest bearing deposits / Average total deposits


42.00 %


41.35 %


41.69 %


41.14 %


40.61 %


0.65


1.39

Average total deposits / Average total funding (3)


96.66 %


96.82 %


96.84 %


96.72 %


96.21 %


(0.16)


0.45
















Select Credit & Capital Ratios:















Non-performing loans and leases to total loans and leases


0.18 %


0.18 %


0.23 %


0.24 %


0.22 %


—


(0.04)

Non-performing assets to total assets


0.15 %


0.14 %


0.17 %


0.17 %


0.17 %


0.01


(0.02)

Allowance for credit losses to loans and leases


1.12 %


1.14 %


1.16 %


1.23 %


1.33 %


(0.02)


(0.21)

Total risk-based capital ratio (4)


13.5 %


14.0 %


14.3 %


14.9 %


15.4 %


(0.50)


(1.90)

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


10.9 %


11.4 %


11.6 %


12.0 %


12.4 %


(0.50)


(1.50)


(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)



Six Months Ended


% Change



Jun 30, 2022


Jun 30, 2021


Year over Year

Per Common Share Data:







Dividends


$             0.42


$             0.42


— %








Performance Ratios:







Efficiency ratio


59.07 %


57.84 %


1.23

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


1.66 %


1.86 %


(0.20)

Return on average assets (ROAA)


1.12 %


1.52 %


(0.40)

Return on average common equity


12.92 %


16.80 %


(3.88)

Return on average tangible common equity (1)


12.96 %


16.89 %


(3.93)








Performance Ratios - Operating: (1)







Operating efficiency ratio (1)


60.09 %


57.38 %


2.71

Operating PPNR return on average assets (1)


1.55 %


1.86 %


(0.31)

Operating return on average assets (1)


1.04 %


1.52 %


(0.48)

Operating return on average common equity (1)


12.01 %


16.84 %


(4.83)

Operating return on average tangible common equity (1)


12.05 %


16.93 %


(4.88)








Average Balance Sheet Yields, Rates, & Ratios:







Yield on loans and leases


3.86 %


4.01 %


(0.15)

Yield on earning assets (2)


3.38 %


3.38 %


—

Cost of interest bearing deposits


0.10 %


0.23 %


(0.13)

Cost of interest bearing liabilities


0.19 %


0.33 %


(0.14)

Cost of total deposits


0.06 %


0.14 %


(0.08)

Cost of total funding (3)


0.11 %


0.20 %


(0.09)

Net interest margin (2)


3.28 %


3.19 %


0.09

Average interest bearing cash / Average interest earning assets


7.31 %


9.35 %


(2.04)

Average loans and leases / Average interest earning assets


78.88 %


76.88 %


2.00

Average loans and leases / Average total deposits


87.00 %


85.54 %


1.46

Average non-interest bearing deposits / Average total deposits


41.68 %


40.06 %


1.62

Average total deposits / Average total funding (3)


96.74 %


95.69 %


1.05


(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 Balances and Mix

(Unaudited)


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Sep 30, 2021


Jun 30, 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

$  3,798,242


$  3,884,784


$  3,786,887


$  3,561,764


$  3,580,386


(2) %


6 %

Owner occupied term, net

2,497,553


2,327,899


2,332,422


2,330,338


2,398,326


7 %


4 %

Multifamily, net

4,768,273


4,323,633


4,051,202


3,813,024


3,553,704


10 %


34 %

Construction & development, net

1,017,297


940,286


890,338


882,778


857,866


8 %


19 %

Residential development, net

194,909


195,308


206,990


177,148


193,904


0 %


1 %

Commercial:














Term, net (1)

2,904,861


2,772,206


3,008,473


3,159,466


3,748,269


5 %


(23) %

Lines of credit & other, net

920,604


871,483


910,733


930,350


908,518


6 %


1 %

Leases & equipment finance, net

1,576,144


1,484,252


1,467,676


1,457,248


1,437,372


6 %


10 %

Residential:














Mortgage, net

5,168,457


4,748,266


4,517,266


4,330,860


4,145,432


9 %


25 %

Home equity loans & lines, net

1,415,722


1,250,702


1,197,170


1,133,823


1,118,278


13 %


27 %

   Consumer & other, net

170,616


176,942


184,023


193,141


201,684


(4) %


(15) %

Total loans and leases, net of deferred fees and costs

$  24,432,678


$  22,975,761


$  22,553,180


$  21,969,940


$  22,143,739


6 %

















(1)    The Bank participated in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include the following net PPP loan balances:

Net PPP loan balance

$101,554


$     172,790


$     380,440


$     726,737


$  1,380,212


(41) %


(93) %















Loan and leases mix:














Commercial real estate:














   Non-owner occupied term, net

15 %


17 %


17 %


16 %


16 %





   Owner occupied term, net

10 %


10 %


10 %


11 %


11 %





   Multifamily, net

20 %


19 %


18 %


17 %


16 %





 Construction & development, net

4 %


4 %


4 %


4 %


4 %





 Residential development, net

1 %


1 %


1 %


1 %


1 %





Commercial:














 Term, net

12 %


12 %


13 %


14 %


17 %





 Lines of credit & other, net

4 %


4 %


4 %


4 %


4 %





 Leases & equipment finance, net

6 %


6 %


7 %


7 %


6 %





Residential:














 Mortgage, net

21 %


21 %


20 %


20 %


19 %





 Home equity loans & lines, net

6 %


5 %


5 %


5 %


5 %





   Consumer & other, net

1 %


1 %


1 %


1 %


1 %





 Total

100 %


100 %


100 %


100 %


100 %





 

Umpqua Holdings Corporation

Deposit Balances, Mix, and Select Account Details

(Unaudited)


Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


% Change

 (Dollars in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Deposits:














Demand, non-interest bearing

$  11,129,209


$  11,058,251


$  11,023,724


$  11,121,127


$  10,718,921


1 %


4 %

Demand, interest bearing

3,723,650


3,955,329


3,774,937


3,758,019


3,466,251


(6) %


7 %

Money market

7,284,641


7,572,581


7,611,718


7,780,442


7,559,621


(4) %


(4) %

Savings

2,446,876


2,429,073


2,375,723


2,325,929


2,221,524


1 %


10 %

Time

1,548,047


1,684,353


1,808,583


1,922,880


2,187,236


(8) %


(29) %

Total

$  26,132,423


$  26,699,587


$  26,594,685


$  26,908,397


$  26,153,553


(2) %


0 %















Total core deposits (1)

$  25,619,500


$  26,140,993


$  25,964,358


$  26,029,814


$  25,122,851


(2) %


2 %















Deposit mix:














Demand, non-interest bearing

43 %


42 %


41 %


41 %


41 %





Demand, interest bearing

14 %


15 %


14 %


14 %


13 %





Money market

28 %


28 %


29 %


29 %


29 %





Savings

9 %


9 %


9 %


9 %


9 %





Time

6 %


6 %


7 %


7 %


8 %





Total

100 %


100 %


100 %


100 %


100 %



















Number of open accounts:














Demand, non-interest bearing

434,436


428,915


428,181


425,337


424,626





Demand, interest bearing

57,145


63,800


66,010


70,749


71,411





Money market

56,430


56,783


57,222


57,794


58,289





Savings

159,709


160,267


160,449


161,698


161,902





Time

32,103


34,127


35,665


37,172


39,560





Total

739,823


743,892


747,527


752,750


755,788



















Average balance per account:














Demand, non-interest bearing

$           25.6


$           25.8


$           25.7


$           26.1


$           25.2





Demand, interest bearing

65.2


62.0


57.2


53.1


48.5





Money market

129.1


133.4


133.0


134.6


129.7





Savings

15.3


15.2


14.8


14.4


13.7





Time

48.2


49.4


50.7


51.7


55.3





Total

$           35.3


$           35.9


$           35.6


$           35.7


$           34.6






(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)


Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.
Quarter


Year
over Year

Non-performing assets:















Loans and leases on non-accrual status:
















Commercial real estate, net


$      5,514


$      5,950


$      5,767


$      5,952


$      9,034


(7) %


(39) %


Commercial, net


12,645


12,415


13,098


18,200


11,639


2 %


9 %


Residential, net


—


—


—


—


—


nm


nm


Consumer & other, net


—


—


—


—


—


nm


nm


Total Loans and leases on non-accrual status


18,159


18,365


18,865


24,152


20,673


(1) %


(12) %

Loans and leases past due 90+ days and accruing:
















Commercial real estate, net


23


1


1


1


1


nm


nm


Commercial, net


3,311


8


4,160


2,454


2,255


nm


47 %


Residential, net


22,340


23,162


27,981


24,919


26,648


(4) %


(16) %


Consumer & other, net


196


111


194


116


240


77 %


(18) %


Total Loans and leases past due 90+ days and accruing


25,870


23,282


32,336


27,490


29,144


11 %


(11) %

Total non-performing loans and leases


44,029


41,647


51,201


51,642


49,817


6 %


(12) %

Other real estate owned


1,868


1,868


1,868


1,868


181


0 %


nm

Total non-performing assets


$    45,897


$    43,515


$    53,069


$    53,510


$    49,998


5 %


(8) %

















Performing restructured loans and leases


$      7,631


$      8,405


$      6,694


$      9,849


$    13,072


(9) %


(42) %

Loans and leases past due 31-89 days


$    34,659


$    42,409


$    31,680


$    41,326


$    30,646


(18) %


13 %

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


0.14 %


0.18 %


0.14 %


0.19 %


0.14 %





Non-performing loans and leases to total loans and leases


0.18 %


0.18 %


0.23 %


0.24 %


0.22 %





Non-performing assets to total assets


0.15 %


0.14 %


0.17 %


0.17 %


0.17 %





nm = not meaningful















 


Umpqua Holdings Corporation


Credit Quality – Allowance for Credit Losses


(Unaudited)




Quarter Ended


% Change

(Dollars in thousands)


Jun 30,

2022


Mar 31,

2022


Dec 31,

2021


Sep 30,

2021


Jun 30,

2021


Seq.

Quarter


Year

over

Year

Allowance for credit losses on loans and leases (ACLLL)















Balance, beginning of period


$ 248,564


$ 248,412


$ 257,560


$ 279,887


$ 311,283


0 %


(20) %

Provision (recapture) for credit losses on loans and leases


18,787


5,696


(1,751)


(16,132)


(17,775)


230 %


(206) %

 Charge-offs
















Commercial real estate, net


(8)


—


(58)


(916)


(129)


nm


(94) %


Commercial, net


(9,035)


(7,858)


(10,197)


(8,521)


(16,093)


15 %


(44) %


Residential, net


—


(167)


—


—


—


(100) %


nm


Consumer & other, net


(836)


(885)


(675)


(936)


(857)


(6) %


(2) %


Total charge-offs


(9,879)


(8,910)


(10,930)


(10,373)


(17,079)


11 %


(42) %

 Recoveries
















Commercial real estate, net


73


25


56


120


89


192 %


(18) %


Commercial, net


2,934


2,545


2,585


3,346


2,681


15 %


9 %


Residential, net


216


173


326


281


209


25 %


3 %


Consumer & other, net


416


623


566


431


479


(33) %


(13) %


Total recoveries


3,639


3,366


3,533


4,178


3,458


8 %


5 %

 Net (charge-offs) recoveries
















Commercial real estate, net


65


25


(2)


(796)


(40)


160 %


(263) %


Commercial, net


(6,101)


(5,313)


(7,612)


(5,175)


(13,412)


15 %


(55) %


Residential, net


216


6


326


281


209


nm


3 %


Consumer & other, net


(420)


(262)


(109)


(505)


(378)


60 %


11 %


Total net charge-offs


(6,240)


(5,544)


(7,397)


(6,195)


(13,621)


13 %


(54) %

Balance, end of period


$ 261,111


$ 248,564


$ 248,412


$ 257,560


$ 279,887


5 %


(7) %

Reserve for unfunded commitments















 Balance, beginning of period


$   12,918


$   12,767


$   11,752


$   14,539


$   19,760


1 %


(35) %

 (Recapture) provision for credit losses on unfunded commitments


(95)


151


1,015


(2,787)


(5,221)


(163) %


(98) %

 Balance, end of period


12,823


12,918


12,767


11,752


14,539


(1) %


(12) %

Total Allowance for credit losses (ACL)


$ 273,934


$ 261,482


$ 261,179


$ 269,312


$ 294,426


5 %


(7) %
















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


0.11 %


0.10 %


0.13 %


0.11 %


0.25 %





Recoveries to gross charge-offs


36.84 %


37.78 %


32.32 %


40.28 %


20.25 %





ACLLL to loans and leases


1.07 %


1.08 %


1.10 %


1.17 %


1.26 %





ACL to loans and leases


1.12 %


1.14 %


1.16 %


1.23 %


1.33 %





nm = not meaningful















 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)



Six Months Ended


% Change

(Dollars in thousands)


Jun 30, 2022


Jun 30, 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 


24,483


(17,249)


(242) %

 Charge-offs








Commercial real estate, net


(8)


(170)


(95) %


Commercial, net


(16,893)


(35,707)


(53) %


Residential, net


(167)


(70)


139 %


Consumer & other, net


(1,721)


(2,047)


(16) %


Total charge-offs


(18,789)


(37,994)


(51) %

 Recoveries








Commercial real estate, net


98


469


(79) %


Commercial, net


5,479


4,772


15 %


Residential, net


389


317


23 %


Consumer & other, net


1,039


1,171


(11) %


Total recoveries


7,005


6,729


4 %

 Net (charge-offs) recoveries








Commercial real estate, net


90


299


(70) %


Commercial, net


(11,414)


(30,935)


(63) %


Residential, net


222


247


(10) %


Consumer & other, net


(682)


(876)


(22) %


Total net charge-offs


(11,784)


(31,265)


(62) %

 Balance, end of period


$        261,111


$        279,887


(7) %

Reserve for unfunded commitments







 Balance, beginning of period


$          12,767


$          20,286


(37) %

 Provision (recapture) for credit losses on unfunded commitments


56


(5,747)


(101) %

 Balance, end of period


12,823


14,539


(12) %

Total Allowance for credit losses (ACL)


$        273,934


$        294,426


(7) %








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


0.10 %


0.29 %



Recoveries to gross charge-offs


37.28 %


17.71 %



nm = not meaningful














 

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

(Unaudited)


Quarter Ended


June 30, 2022


March 31, 2022


June 30, 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

$     264,320


$    2,742


4.15 %


$     286,307


$    2,262


3.16 %


$     468,960


$    3,725


3.18 %

Loans and leases (1)

23,550,796


231,932


3.94 %


22,566,109


212,142


3.79 %


22,040,794


219,745


3.99 %

Taxable securities

3,410,091


17,340


2.03 %


3,659,145


18,811


2.06 %


3,210,771


15,024


1.87 %

Non-taxable securities (2)

220,327


1,721


3.13 %


234,186


1,726


2.95 %


247,282


1,864


3.02 %

Temporary investments and interest-bearing cash

1,663,454


2,919


0.70 %


2,618,528


1,353


0.21 %


2,835,474


774


0.11 %

Total interest-earning assets

29,108,988


$  256,654


3.53 %


29,364,275


$  236,294


3.24 %


28,803,281


$  241,132


3.35 %

Other assets

1,247,915






1,233,138






1,352,736





  Total assets

$  30,356,903






$  30,597,413






$  30,156,017





INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$  3,896,553


$       610


0.06 %


$  3,812,173


$       498


0.05 %


$  3,385,336


$       459


0.05 %

Money market deposits

7,366,987


1,717


0.09 %


7,640,810


1,408


0.07 %


7,614,474


1,533


0.08 %

Savings deposits

2,426,124


199


0.03 %


2,405,958


205


0.03 %


2,171,865


154


0.03 %

Time deposits

1,618,394


1,489


0.37 %


1,753,880


1,805


0.42 %


2,303,068


4,870


0.85 %

Total interest-bearing deposits

15,308,058


4,015


0.11 %


15,612,821


3,916


0.10 %


15,474,743


7,016


0.18 %

Repurchase agreements and federal funds purchased

512,641


66


0.05 %


486,542


63


0.05 %


440,881


68


0.06 %

Borrowings

6,273


50


3.21 %


6,313


49


3.16 %


214,670


866


1.62 %

Junior subordinated debentures

393,964


4,001


4.07 %


380,985


3,149


3.35 %


369,812


3,042


3.30 %

  Total interest-bearing liabilities

16,220,936


$    8,132


0.20 %


16,486,661


$    7,177


0.18 %


16,500,106


$  10,992


0.27 %

Non-interest-bearing deposits

11,086,376






11,007,034






10,582,197





Other liabilities

464,755






388,659






373,704





Total liabilities

27,772,067






27,882,354






27,456,007





Common equity

2,584,836






2,715,059






2,700,010





Total liabilities and shareholders' equity

$  30,356,903






$  30,597,413






$  30,156,017





NET INTEREST INCOME



$  248,522






$  229,117






$  230,140



NET INTEREST SPREAD





3.33 %






3.06 %






3.08 %

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





3.41 %






3.14 %






3.20 %



(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 $352,000 for the three months ended June 30, 2022, as compared to $354,000 for March 31, 2022 and $377,000 for June 30, 2021. 

 

Umpqua Holdings Corporation
Average Rates and Balances

(Unaudited)

(dollars in thousands)

Six Months Ended


June 30, 2022


June 30, 2021


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

$        275,253


$        5,004


3.64 %


$        585,611


$        8,570


2.93 %

Loans and leases (1)

23,061,173


444,074


3.86 %


21,867,678


436,041


4.01 %

Taxable securities

3,533,930


36,151


2.05 %


3,079,065


28,734


1.87 %

Non-taxable securities (2)

227,218


3,447


3.03 %


249,996


3,779


3.02 %

Temporary investments and interest-bearing cash

2,138,352


4,272


0.40 %


2,660,435


1,398


0.11 %

Total interest-earning assets

29,235,926


$    492,948


3.38 %


28,442,785


$    478,522


3.38 %

Other assets

1,240,386






1,333,577





Total assets

$   30,476,312






$   29,776,362





INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$     3,854,596


$        1,108


0.06 %


$     3,256,085


$           873


0.05 %

Money market deposits

7,503,142


3,125


0.08 %


7,488,195


3,024


0.08 %

Savings deposits

2,416,096


404


0.03 %


2,085,874


317


0.03 %

Time deposits

1,685,763


3,294


0.39 %


2,491,169


13,480


1.09 %

Total interest-bearing deposits

15,459,597


7,931


0.10 %


15,321,323


17,694


0.23 %

Repurchase agreements and federal funds purchased

499,664


129


0.05 %


418,538


144


0.07 %

Borrowings

6,293


99


3.18 %


375,977


2,638


1.41 %

Junior subordinated debentures

387,510


7,150


3.72 %


356,715


6,094


3.44 %

Total interest-bearing liabilities

16,353,064


$      15,309


0.19 %


16,472,553


$      26,570


0.33 %

Non-interest-bearing deposits

11,046,925






10,241,863





Other liabilities

426,917






374,436





Total liabilities

27,826,906






27,088,852





Common equity

2,649,406






2,687,510





 Total liabilities and shareholders' equity

$   30,476,312






$   29,776,362





NET INTEREST INCOME



$    477,639






$    451,952



NET INTEREST SPREAD





3.19 %






3.05 %

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





3.28 %






3.19 %















(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 $706,000 for the six months ended June 30, 2022, as compared to $758,000 for the same period in 2021. 

 

Umpqua Holdings Corporation

Segments

(Unaudited)

Core Banking

Quarter Ended


% Change

(Dollars in thousands)

Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Seq.

Quarter


Year

over

Year

Net interest income

$     247,009


$     227,087


$     231,250


$     232,348


$     226,915


9 %


9 %

Provision (recapture) for credit losses

18,692


4,804


(736)


(18,919)


(22,996)


nm


nm

Non-interest income















Gain on sale of debt securities, net

—


2


4


—


—


(100) %


nm


(Loss) gain on equity securities, net

(2,075)


(2,661)


(466)


(343)


4


(22) %


nm


Gain (loss) on swap derivatives, net

7,337


7,047


(303)


1,429


(4,481)


nm


(264) %


Change in fair value of certain loans held for investment

(15,210)


(21,049)


(2,672)


3,432


2,782


nm


nm


Non-interest income (excluding above items)

34,461


35,650


42,812


34,849


48,151


(3) %


(28) %


Total non-interest income

24,513


18,989


39,375


39,367


46,456


29 %


(47) %

Non-interest expense















Merger related expenses

2,672


2,278


15,183


—


—


17 %


nm


Exit and disposal costs

442


3,033


3,022


3,813


4,728


(85) %


(91) %


Non-interest expense (excluding above items)

148,946


148,423


150,587


146,931


146,877


0 %


1 %


Allocated expenses, net (1)

3,702


3,735


4,314


3,680


970


(1) %


nm


Total non-interest expense

155,762


157,469


173,106


154,424


152,575


(1) %


2 %

Income before income taxes

97,068


83,803


98,255


136,210


143,792


16 %


(32) %

Provision for income taxes

24,530


20,917


24,067


33,945


35,630


17 %


(31) %

Net income

$       72,538


$       62,886


$       74,188


$     102,265


$     108,162


15 %


(33) %

Effective Tax Rate

25 %


25 %


24 %


25 %


25 %





Efficiency Ratio

57 %


64 %


64 %


57 %


56 %





Total assets

$  29,721,590


$  30,153,079


$  30,155,058


$  30,419,108


$  29,720,182


(1) %


0 %

Total loans and leases

$  24,432,678


$  22,975,761


$  22,553,180


$  21,969,940


$  22,143,739


6 %


10 %

Total deposits

$  25,925,294


$  26,479,078


$  26,370,568


$  26,510,938


$  25,820,776


(2) %


0 %

Key Rates, end of period:














10 year CMT

2.98 %


2.32 %


1.52 %


1.52 %


1.45 %





FHLMC 30 year fixed

5.70 %


4.67 %


3.11 %


3.01 %


2.98 %





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)

Jun 30, 2022


Mar 31, 2022


Dec 31, 2021


Sep 30, 2021


Jun 30, 2021


Seq.

Quarter


Year

over

Year

Net interest income

$         1,161


$         1,676


$         2,129


$         2,726


$         2,848


(31) %


(59) %

Provision for credit losses

—


—


—


—


—


nm


nm

Non-interest income















Residential mortgage banking revenue:















Origination and sale

15,101


16,844


23,624


30,293


41,367


(10) %


(63) %


Servicing

9,505


9,140


9,457


9,172


9,120


4 %


4 %


Change in fair value of MSR asset:















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

(4,961)


(5,347)


(5,311)


(4,681)


(4,366)


(7) %


14 %


Changes due to valuation inputs or assumptions

10,899


40,149


15,415


(634)


(1,678)


(73) %


nm


Non-interest income (excluding above items)

178


194


178


188


176


(8) %


1 %


Total non-interest income

30,722


60,980


43,363


34,338


44,619


(50) %


(31) %

Non-interest expense















Non-interest expense

27,514


28,696


30,919


33,009


37,795


(4) %


(27) %


Allocated expenses, net(1)

(3,702)


(3,735)


(4,314)


(3,680)


(970)


(1) %


nm


Total non-interest expense

23,812


24,961


26,605


29,329


36,825


(5) %


(35) %

Income before income taxes

8,071


37,695


18,887


7,735


10,642


(79) %


(24) %

Provision for income taxes

2,018


9,424


4,721


1,934


2,661


(79) %


(24) %

Net income

$         6,053


$       28,271


$       14,166


$         5,801


$         7,981


(79) %


(24) %

Effective Tax Rate

25 %


25 %


25 %


25 %


25 %





Efficiency Ratio

75 %


40 %


58 %


79 %


78 %





Total assets

$     414,104


$     484,047


$     485,878


$     472,371


$     564,783


(14) %


(27) %

Loans held for sale

$     228,889


$     309,946


$     353,105


$     352,466


$     429,052


(26) %


(47) %

Total deposits

$     207,129


$     220,509


$     224,117


$     397,459


$     332,777


(6) %


(38) %

LHFS Production Statistics:














Closed loan volume for-sale

$     576,532


$     649,122


$     871,268


$     987,281


$  1,253,023


(11) %


(54) %

Gain on sale margin

2.62 %


2.59 %


2.71 %


3.07 %


3.30 %





Direct LHFS expense

$       13,197


$       14,296


$       18,150


$       19,958


$       25,459


(8) %


(48) %

Direct LHFS expenses as % of volume

2.29 %


2.20 %


2.08 %


2.02 %


2.03 %





MSR Statistics:














Residential mortgage loans serviced for others

$  12,932,747


$  12,810,574


$  12,755,671


$  12,853,291


$  12,897,032


1 %


0 %

MSR, net

$     179,558


$     165,807


$     123,615


$     105,834


$     102,699


8 %


75 %

MSR as % of serviced portfolio

1.39 %


1.29 %


0.97 %


0.82 %


0.80 %





Key Rates, end of period:














10 year CMT

2.98 %


2.32 %


1.52 %


1.52 %


1.45 %





FHLMC 30 year fixed

5.70 %


4.67 %


3.11 %


3.01 %


2.98 %





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)

(in thousands)

Core Banking


Mortgage Banking



Six Months Ended


% Change


Six Months Ended


% Change



Jun 30, 2022


Jun 30, 2021


Year over
Year


Jun 30, 2022


Jun 30, 2021


Year over
Year

Net interest income

$      474,096


$      444,489


7 %


$          2,837


$          6,705


(58) %

Provision (recapture) for credit losses

23,496


(22,996)


(202) %


—


—


nm

Non-interest income













Residential mortgage banking revenue:













Origination and sale

—


—


nm


31,945


103,872


(69) %


Servicing

—


—


nm


18,645


18,207


2 %


Change in fair value of MSR asset:













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

—


—


nm


(10,308)


(8,911)


16 %


Changes due to valuation inputs or assumptions

—


—


nm


51,048


(3,692)


nm


Gain on sale of debt securities, net

2


4


(50) %


—


—


nm


Loss on equity securities, net

(4,736)


(702)


575 %


—


—


nm


Gain on swap derivatives, net

14,384


7,269


98 %


—


—


nm


Change in fair value of certain loans held for investment

(36,259)


2,272


nm


—


—


nm


Non-interest income (excluding above items)

70,111


81,064


(14) %


372


492


(24) %


Total non-interest income

43,502


89,907


(52) %


91,702


109,968


(17) %

Non-interest expense













Merger related expenses

4,950


—


nm


—


—


nm


Exit and disposal costs

3,475


5,928


(41) %


—


—


nm


Non-interest expense (excluding above items)

297,369


292,038


2 %


56,210


79,026


(29) %


Allocated expenses, net (1)

7,437


180


nm


(7,437)


(180)


nm


Total non-interest expense

313,231


298,146


5 %


48,773


78,846


(38) %

Income before income taxes

180,871


259,246


(30) %


45,766


37,827


21 %

Provision for income taxes

45,447


63,736


(29) %


11,442


9,457


21 %

Net income

$      135,424


$      195,510


(31) %


$        34,324


$        28,370


21 %














Effective Tax Rate

25 %


25 %




25 %


25 %



Efficiency Ratio

60 %


56 %




52 %


68 %
















LHFS Production Statistics:












Closed loan volume for-sale







$   1,225,654


$   2,888,555



Gain on sale margin







2.61 %


3.60 %



Direct LHFS expense







$        27,493


$        56,610



Direct LHFS expenses as % of volume







2.24 %


1.96 %



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)



Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.
Quarter


Year
over
Year

Total shareholders' equity

a


$                   2,518,276


$                   2,607,598


$                   2,749,270


$                   2,722,379


$                   2,766,316


(3) %


(9) %

Less: Other intangible assets, net



6,789


7,815


8,840


9,970


11,100


(13) %


(39) %

Tangible common shareholders' equity

b


$                   2,511,487


$                   2,599,783


$                   2,740,430


$                   2,712,409


$                   2,755,216


(3) %


(9) %

Less: Accumulated other comprehensive income (AOCI)



$ (308,147)


(183,756)


1,759


20,209


50,629


68 %


nm

Tangible common shareholders' equity, ex AOCI

c


$                   2,819,634


$                   2,783,539


$                   2,738,671


$                   2,692,200


$                   2,704,587


1 %


4 %

















Total assets

d


$  30,135,694


$  30,637,126


$  30,640,936


$  30,891,479


$  30,284,965


(2) %


— %

Less: Other intangible assets, net



6,789


7,815


8,840


9,970


11,100


(13) %


(39) %

Tangible assets

e


$  30,128,905


$  30,629,311


$  30,632,096


$  30,881,509


$  30,273,865


(2) %


— %

Common shares outstanding at period end

f


217,049


216,967


216,626


216,622


220,626


0 %


(2) %

















Total shareholders' equity to total assets ratio

a / d


8.36 %


8.51 %


8.97 %


8.81 %


9.13 %


(0.15)


(0.77)

Tangible common equity ratio

b / e


8.34 %


8.49 %


8.95 %


8.78 %


9.10 %


(0.15)


(0.76)

Tangible common equity ratio, ex AOCI

c / e


9.36 %


9.09 %


8.94 %


8.72 %


8.93 %


0.27


0.43

Book value per common share

a / f


$     11.60


$     12.02


$     12.69


$     12.57


$     12.54


(3) %


(7) %

Tangible book value per common share

b / f


$     11.57


$     11.98


$     12.65


$     12.52


$     12.49


(3) %


(7) %

Tangible book value per common share, ex AOCI

c / f


$     12.99


$     12.83


$     12.64


$     12.43


$     12.26


1 %


6 %

nm = not meaningful
















 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Consolidated



Quarter Ended


% Change

(Dollars in thousands)



Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.
Quarter


Year
over
Year

Non-Interest Income Adjustments
















Gain on sale of debt securities, net



$            —


$              2


$              4


$            —


$            —


(100) %


nm

(Loss) gain on equity securities, net



(2,075)


(2,661)


(466)


(343)


4


(22) %


nm

Gain (loss) on swap derivatives



7,337


7,047


(303)


1,429


(4,481)


4 %


(264) %

Change in fair value of certain loans held for investment



(15,210)


(21,049)


(2,672)


3,432


2,782


(28) %


nm

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



10,899


40,149


15,415


(634)


(1,678)


(73) %


nm

Total non-interest income adjustments

a


$          951


$     23,488


$     11,978


$       3,884


$      (3,373)


(96) %


(128) %

















Non-Interest Expense Adjustments
















Merger related expenses



$       2,672


$       2,278


$     15,183


$            —


$            —


17 %


nm

Exit and disposal costs



442


3,033


3,022


3,813


4,728


(85) %


(91) %

Total non-interest expense adjustments

b


$       3,114


$       5,311


$     18,205


$       3,813


$       4,728


(41) %


(34) %

















Net interest income (1)

c


$   248,522


$   229,117


$   233,754


$   235,452


$   230,140


8 %


8 %

















Non-interest income (GAAP)

d


$     55,235


$     79,969


$     82,738


$     73,705


$     91,075


(31) %


(39) %

Less: Non-interest income adjustments

a


(951)


(23,488)


(11,978)


(3,884)


3,373


(96) %


(128) %

Operating non-interest income (non-GAAP)

e


$     54,284


$     56,481


$     70,760


$     69,821


$     94,448


(4) %


(43) %

















Revenue (GAAP) (1)

f=c+d


$   303,757


$   309,086


$   316,492


$   309,157


$   321,215


(2) %


(5) %

Operating revenue (non-GAAP)  (1)

g=c+e


$   302,806


$   285,598


$   304,514


$   305,273


$   324,588


6 %


(7) %

















Non-interest expense (GAAP)

h


$   179,574


$   182,430


$   199,711


$   183,753


$   189,400


(2) %


(5) %

Less: Non-interest expense adjustments

b


(3,114)


(5,311)


(18,205)


(3,813)


(4,728)


(41) %


(34) %

Operating non-interest expense (non-GAAP)

i


$   176,460


$   177,119


$   181,506


$   179,940


$   184,672


— %


(4) %

















Net income (GAAP)

j


$     78,591


$     91,157


$     88,354


$   108,066


$   116,143


(14) %


(32) %

Provision for income taxes



26,548


30,341


28,788


35,879


38,291


(13) %


(31) %

Income before provision for income taxes



105,139


121,498


117,142


143,945


154,434


(13) %


(32) %

Provision (recapture) for credit losses



18,692


4,804


(736)


(18,919)


(22,996)


289 %


(181) %

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

k


123,831


126,302


116,406


125,026


131,438


(2) %


(6) %

Less: Non-interest income adjustments

a


(951)


(23,488)


(11,978)


(3,884)


3,373


(96) %


(128) %

Add: Non-interest expense adjustments

b


3,114


5,311


18,205


3,813


4,728


(41) %


(34) %

Operating PPNR (non-GAAP)

l


$   125,994


$   108,125


$   122,633


$   124,955


$   139,539


17 %


(10) %

















Net income (GAAP)

j


$     78,591


$     91,157


$     88,354


$   108,066


$   116,143


(14) %


(32) %

Less: Non-interest income adjustments

a


(951)


(23,488)


(11,978)


(3,884)


3,373


(96) %


(128) %

Add: Non-interest expense adjustments

b


3,114


5,311


18,205


3,813


4,728


(41) %


(34) %

Tax effect of adjustments



(480)


4,576


1,190


18


(2,025)


(110) %


(76) %

Operating net income (non-GAAP)

m


$     80,274


$     77,556


$     95,771


$   108,013


$   122,219


4 %


(34) %

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)



Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.
Quarter


Year
over
Year

Average assets

n


$  30,356,903


$  30,597,413


$  30,886,378


$  30,614,374


$  30,156,017


(1) %


1 %

Less: Average goodwill and other intangible assets, net



7,379


8,407


9,491


10,609


12,615


(12) %


(42) %

Average tangible assets

o


$  30,349,524


$  30,589,006


$  30,876,887


$  30,603,765


$  30,143,402


(1) %


1 %

















Average common shareholders' equity

p


$                   2,584,836


$                   2,715,059


$                   2,717,753


$                   2,709,641


$                   2,700,010


(5) %


(4) %

Less: Average goodwill and other intangible assets, net



7,379


8,407


9,491


10,609


12,615


(12) %


(42) %

Average tangible common equity

q


$                   2,577,457


$                   2,706,652


$                   2,708,262


$                   2,699,032


$                   2,687,395


(5) %


(4) %

















Weighted average basic shares outstanding

r


217,030


216,782


216,624


218,416


220,593


0 %


(2) %

Weighted average diluted shares outstanding

s


217,279


217,392


217,356


218,978


221,022


0 %


(2) %

















Select Per-Share & Performance Metrics
















Earnings-per-share - basic

j / r


$      0.36


$      0.42


$      0.41


$      0.49


$      0.53


(14) %


(32) %

Earnings-per-share - diluted

j / s


$      0.36


$      0.42


$      0.41


$      0.49


$      0.53


(14) %


(32) %

Efficiency ratio

h / f


59.12 %


59.02 %


63.10 %


59.44 %


58.96 %


0.10


0.16

PPNR return on average assets

k / n


1.64 %


1.67 %


1.50 %


1.62 %


1.75 %


(0.03)


(0.11)

Return on average assets

j / n


1.04 %


1.21 %


1.13 %


1.40 %


1.54 %


(0.17)


(0.50)

Return on average tangible assets

j / o


1.04 %


1.21 %


1.14 %


1.40 %


1.55 %


(0.17)


(0.51)

Return on average common equity

j / p


12.20 %


13.62 %


12.90 %


15.82 %


17.25 %


(1.42)


(5.05)

Return on average tangible common equity

j / q


12.23 %


13.66 %


12.94 %


15.88 %


17.33 %


(1.43)


(5.10)

















Operating Per-Share & Performance Metrics
















Operating earnings-per-share - basic

m / r


$      0.37


$      0.36


$      0.44


$      0.49


$      0.55


3 %


(33) %

Operating earnings-per-share - diluted

m / s


$      0.37


$      0.36


$      0.44


$      0.49


$      0.55


3 %


(33) %

Operating efficiency ratio

i / g


58.27 %


62.02 %


59.61 %


58.94 %


56.89 %


(3.75)


1.38

Operating PPNR return on average assets

l / n


1.66 %


1.43 %


1.58 %


1.62 %


1.86 %


0.23


(0.20)

Operating return on average assets

m / n


1.06 %


1.03 %


1.23 %


1.40 %


1.63 %


0.03


(0.57)

Operating return on average tangible assets

m / o


1.06 %


1.03 %


1.23 %


1.40 %


1.63 %


0.03


(0.57)

Operating return on average common equity

m / p


12.46 %


11.58 %


13.98 %


15.82 %


18.16 %


0.88


(5.70)

Operating return on average tangible common equity

m / q


12.49 %


11.62 %


14.03 %


15.88 %


18.24 %


0.87


(5.75)

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Core Banking



Quarter Ended


% Change

(Dollars in thousands)



Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.
Quarter


Year
over
Year

Non-Interest Income Adjustments
















Gain on sale of debt securities, net



$       —


$         2


$         4


$         —


$         —


(100) %


nm

(Loss) gain on equity securities, net



(2,075)


(2,661)


(466)


(343)


4


(22) %


nm

Gain (loss) on swap derivatives



7,337


7,047


(303)


1,429


(4,481)


nm


(264) %

Change in fair value of certain loans held for investment



(15,210)


(21,049)


(2,672)


3,432


2,782


(28) %


nm

Total non-interest income adjustments

a


$ (9,948)


$  (16,661)


$ (3,437)


$    4,518


$   (1,695)


(40) %


487 %

















Non-Interest Expense Adjustments
















Merger related expenses



$  2,672


$  2,278


$ 15,183


$         —


$         —


17 %


nm

Exit and disposal costs



442


3,033


3,022


3,813


4,728


(85) %


(91) %

Total non-interest expense adjustments

b


$  3,114


$  5,311


$ 18,205


$    3,813


$    4,728


(41) %


(34) %

















Net interest income (1)

c


$  247,361


$  227,441


$  231,625


$ 232,726


$ 227,292


9 %


9 %

















Non-interest income (GAAP)

d


$ 24,513


$ 18,989


$ 39,375


$  39,367


$  46,456


29 %


(47) %

Less: Non-interest income adjustments

a


9,948


16,661


3,437


(4,518)


1,695


(40) %


487 %

Operating non-interest income (non-GAAP)

e


$ 34,461


$ 35,650


$ 42,812


$  34,849


$  48,151


(3) %


(28) %

















Revenue (GAAP) (1)

f=c+d


$  271,874


$  246,430


$  271,000


$ 272,093


$ 273,748


10 %


(1) %

Operating revenue (non-GAAP) (1)

g=c+e


$  281,822


$  263,091


$  274,437


$ 267,575


$ 275,443


7 %


2 %

















Non-interest expense (GAAP) (2)

h


$  155,762


$  157,469


$  173,106


$ 154,424


$ 152,575


(1) %


2 %

Less: Non-interest expense adjustments

b


(3,114)


(5,311)


(18,205)


(3,813)


(4,728)


(41) %


(34) %

Operating non-interest expense (non-GAAP)

i


$  152,648


$  152,158


$  154,901


$ 150,611


$ 147,847


— %


3 %

















Net income (GAAP)

j


$ 72,538


$ 62,886


$ 74,188


$ 102,265


$ 108,162


15 %


(33) %

Provision for income taxes



24,530


20,917


24,067


33,945


35,630


17 %


(31) %

Income before provision for income taxes



97,068


83,803


98,255


136,210


143,792


16 %


(32) %

Provision (recapture) for credit losses



18,692


4,804


(736)


(18,919)


(22,996)


289 %


(181) %

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

k


115,760


88,607


97,519


117,291


120,796


31 %


(4) %

Less: Non-interest income adjustments

a


9,948


16,661


3,437


(4,518)


1,695


(40) %


487 %

Add: Non-interest expense adjustments

b


3,114


5,311


18,205


3,813


4,728


(41) %


(34) %

Operating PPNR (non-GAAP)

l


$  128,822


$  110,579


$  119,161


$ 116,586


$ 127,219


16 %


1 %

















Net income (GAAP)

j


$ 72,538


$ 62,886


$ 74,188


$ 102,265


$ 108,162


15 %


(33) %

Less: Non-interest income adjustments

a


9,948


16,661


3,437


(4,518)


1,695


(40) %


487 %

Add: Non-interest expense adjustments

b


3,114


5,311


18,205


3,813


4,728


(41) %


(34) %

Tax effect of adjustments



(3,205)


(5,461)


(2,664)


177


(1,605)


(41) %


100 %

Operating net income (non-GAAP)

m


$ 82,395


$ 79,397


$ 93,166


$ 101,737


$ 112,980


4 %


(27) %

















Efficiency ratio

h / f


57.29 %


63.90 %


63.88 %


56.75 %


55.74 %


(6.61)


1.55

Operating efficiency ratio

i / g


54.16 %


57.83 %


56.44 %


56.29 %


53.68 %


(3.67)


0.48

Core Banking net income / Consolidated net income



92.30 %


68.99 %


83.97 %


94.63 %


93.13 %


23.31


(0.83)

Core Banking operating net income / Consolidated operating net income



102.64 %


102.37 %


97.28 %


94.19 %


92.44 %


0.27


10.20

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)



Jun 30,
2022


Mar 31,
2022


Dec 31,
2021


Sep 30,
2021


Jun 30,
2021


Seq.
Quarter


Year over
Year

Non-Interest Income Adjustments
















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



$ 10,899


$ 40,149


$ 15,415


$    (634)


$ (1,678)


(73) %


nm

Total non-interest income adjustments

a


$ 10,899


$ 40,149


$ 15,415


$    (634)


$ (1,678)


(73) %


nm

















Total non-interest expense adjustments

b


$       —


$       —


$       —


$       —


$       —


nm


nm

















Net interest income

c


$  1,161


$  1,676


$  2,129


$  2,726


$  2,848


(31) %


(59) %

















Non-interest income (GAAP)

d


$ 30,722


$ 60,980


$ 43,363


$ 34,338


$ 44,619


(50) %


(31) %

Less: Non-interest income adjustments

a


(10,899)


(40,149)


(15,415)


634


1,678


(73) %


(750) %

Operating non-interest income (non-GAAP)

e


$ 19,823


$ 20,831


$ 27,948


$ 34,972


$ 46,297


(5) %


(57) %

















Revenue (GAAP)

f=c+d


$ 31,883


$ 62,656


$ 45,492


$ 37,064


$ 47,467


(49) %


(33) %

Operating revenue (non-GAAP)

g=c+e


20,984


22,507


30,077


37,698


49,145


(7) %


(57) %

















Non-interest expense (GAAP) (1)

h


23,812


24,961


26,605


29,329


36,825


(5) %


(35) %

Less: Non-interest expense adjustments

b


—


—


—


—


—


nm


nm

Operating non-interest expense (non-GAAP)

i


$ 23,812


$ 24,961


$ 26,605


$ 29,329


$ 36,825


(5) %


(35) %

















Net income (GAAP)

j


$  6,053


$ 28,271


$ 14,166


$  5,801


$  7,981


(79) %


(24) %

Provision for income taxes



2,018


9,424


4,721


1,934


2,661


(79) %


(24) %

Income before provision for income taxes



8,071


37,695


18,887


7,735


10,642


(79) %


(24) %

Provision for credit losses



—


—


—


—


—


nm


nm

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

k


8,071


37,695


18,887


7,735


10,642


(79) %


(24) %

Less: Non-interest income adjustments

a


(10,899)


(40,149)


(15,415)


634


1,678


(73) %


(750) %

Add: Non-interest expense adjustments

b


—


—


—


—


—


nm


nm

Operating PPNR (non-GAAP)

l


$ (2,828)


$ (2,454)


$  3,472


$  8,369


$ 12,320


15 %


(123) %

















Net income (GAAP)

j


$  6,053


$ 28,271


$ 14,166


$  5,801


$  7,981


(79) %


(24) %

Less: Non-interest income adjustments

a


(10,899)


(40,149)


(15,415)


634


1,678


(73) %


(750) %

Add: Non-interest expense adjustments

b


—


—


—


—


—


nm


nm

Tax effect of adjustments



2,725


10,037


3,854


(159)


(420)


(73) %


nm

Operating net income (non-GAAP)

m


$ (2,121)


$ (1,841)


$  2,605


$  6,276


$  9,239


15 %


(123) %

















Efficiency ratio

h / f


74.69 %


39.84 %


58.48 %


79.13 %


77.58 %


34.85


(2.89)

Operating efficiency ratio

i / g


113.48 %


110.90 %


88.46 %


77.80 %


74.93 %


2.58


38.55

Mortgage Banking net income / Consolidated net income



7.70 %


31.01 %


16.03 %


5.37 %


6.87 %


(23.31)


0.83

Mortgage Banking operating net income / Consolidated operating net income



(2.64) %


(2.37) %


2.72 %


5.81 %


7.56 %


(0.27)


(10.20)

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)



Jun 30, 2022


Jun 30, 2021


Year over Year

Non-Interest Income Adjustments








Gain on sale of debt securities, net



$                        2


$                        4


(50) %

Loss on equity securities, net



(4,736)


(702)


575 %

Gain on swap derivatives



14,384


7,269


98 %

Change in fair value of certain loans held for investment



(36,259)


2,272


nm

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



51,048


(3,692)


nm

Total non-interest income adjustments

a


$                24,439


$                 5,151


374 %









Non-Interest Expense Adjustments








Merger related expenses



$                 4,950


$                      —


nm

Exit and disposal costs



3,475


5,928


(41) %

Total non-interest expense adjustments

b


$                 8,425


$                 5,928


42 %









Net interest income (1)

c


$              477,639


$              451,952


6 %









Non-interest income (GAAP)

d


$              135,204


$              199,875


(32) %

Less: Non-interest income adjustments

a


(24,439)


(5,151)


374 %

Operating non-interest income (non-GAAP)

e


$              110,765


$              194,724


(43) %









Revenue (GAAP) (1)

f=c+d


$              612,843


$              651,827


(6) %

Operating revenue (non-GAAP)  (1)

g=c+e


$              588,404


$              646,676


(9) %









Non-interest expense (GAAP)

h


$              362,004


$              376,992


(4) %

Less: Non-interest expense adjustments

b


(8,425)


(5,928)


42 %

Operating non-interest expense (non-GAAP)

i


$              353,579


$              371,064


(5) %









Net income (GAAP)

j


$              169,748


$              223,880


(24) %

Provision for income taxes



56,889


73,193


(22) %

Income before provision for income taxes



226,637


297,073


(24) %

Provision (recapture) for credit losses



23,496


(22,996)


(202) %

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

k


250,133


274,077


(9) %

Less: Non-interest income adjustments

a


(24,439)


(5,151)


374 %

Add: Non-interest expense adjustments

b


8,425


5,928


42 %

Operating PPNR (non-GAAP)

l


$              234,119


$              274,854


(15) %









Net income (GAAP)

j


$              169,748


$              223,880


(24) %

Less: Non-interest income adjustments

a


(24,439)


(5,151)


374 %

Add: Non-interest expense adjustments

b


8,425


5,928


42 %

Tax effect of adjustments



4,096


(194)


nm

Operating net income (non-GAAP)

m


$              157,830


$              224,463


(30) %

nm = not meaningful















Average assets

n


$         30,476,312


$         29,776,362


2 %

Less: Average goodwill and other intangible assets, net



$                 7,890


$                14,098


(44) %

Average tangible assets

o


$         30,468,422


$         29,762,264


2 %









Average common shareholders' equity

p


$           2,649,406


$           2,687,510


(1) %

Less: Average goodwill and other intangible assets, net



$                 7,890


$                14,098


(44) %

Average tangible common equity

q


$           2,641,516


$           2,673,412


(1) %









Weighted average basic shares outstanding

r


$              216,906


$              220,481


(2) %

Weighted average diluted shares outstanding

s


$              217,333


$              220,928


(2) %









Select Per-Share & Performance Metrics








Earnings-per-share - basic

j / r


$                   0.78


$                   1.02


(24) %

Earnings-per-share - diluted

j / s


$                   0.78


$                   1.01


(23) %

Efficiency ratio

h / f


59.07 %


57.84 %


1.23

PPNR return on average assets

k / n


1.66 %


1.86 %


(0.20)

Return on average assets

j / n


1.12 %


1.52 %


(0.40)

Return on average tangible assets

j / o


1.12 %


1.52 %


(0.40)

Return on average common equity

j / p


12.92 %


16.80 %


(3.88)

Return on average tangible common equity

j / q


12.96 %


16.89 %


(3.93)









Operating Per-Share & Performance Metrics








Operating earnings-per-share - basic

m / r


$                   0.73


$                   1.02


(28) %

Operating earnings-per-share - diluted

m / s


$                   0.73


$                   1.02


(28) %

Operating efficiency ratio

i / g


60.09 %


57.38 %


2.71

Operating PPNR return on average assets

l / n


1.55 %


1.86 %


(0.31)

Operating return on average assets

m / n


1.04 %


1.52 %


(0.48)

Operating return on average tangible assets

m / o


1.04 %


1.52 %


(0.48)

Operating return on average common equity

m / p


12.01 %


16.84 %


(4.83)

Operating return on average tangible common equity

m / q


12.05 %


16.93 %


(4.88)


(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)



Jun 30, 2022


Jun 30, 2021


Year over Year

Non-Interest Income Adjustments








Gain on sale of debt securities, net



2


4


(50) %

Loss on equity securities, net



(4,736)


(702)


575 %

Gain on swap derivatives



14,384


7,269


98 %

Change in fair value of certain loans held for investment



(36,259)


2,272


nm

Total non-interest income adjustments

a


(26,609)


8,843


(401) %









Non-Interest Expense Adjustments








Merger related expenses



4,950


—


nm

Exit and disposal costs



3,475


5,928


(41) %

Total non-interest expense adjustments

b


8,425


5,928


42 %









Net interest income (1)

c


474,802


445,247


7 %









Non-interest income (GAAP)

d


43,502


89,907


(52) %

Less: Non-interest income adjustments

a


26,609


(8,843)


(401) %

Operating non-interest income (non-GAAP)

e


70,111


81,064


(14) %









Revenue (GAAP) (1)

f=c+d


518,304


535,154


(3) %

Operating revenue (non-GAAP) (1)

g=c+e


544,913


526,311


4 %









Non-interest expense (GAAP) (2)

h


313,231


298,146


5 %

Less: Non-interest expense adjustments

b


(8,425)


(5,928)


42 %

Operating non-interest expense (non-GAAP)

i


304,806


292,218


4 %









Net income (GAAP)

j


135,424


195,510


(31) %

Provision for income taxes



45,447


63,736


(29) %

Income before provision for income taxes



180,871


259,246


(30) %

Provision (recapture) for credit losses



23,496


(22,996)


(202) %

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

k


204,367


236,250


(13) %

Less: Non-interest income adjustments

a


26,609


(8,843)


(401) %

Add: Non-interest expense adjustments

b


8,425


5,928


42 %

Operating PPNR (non-GAAP)

l


239,401


233,335


3 %









Net income (GAAP)

j


135,424


195,510


(31) %

Less: Non-interest income adjustments

a


26,609


(8,843)


(401) %

Add: Non-interest expense adjustments

b


8,425


5,928


42 %

Tax effect of adjustments



(8,667)


729


nm

Operating net income (non-GAAP)

m


161,791


193,324


(16) %









Efficiency ratio

h / f


60.43 %


55.71 %


4.72

Operating efficiency ratio

i / g


55.94 %


55.52 %


0.42

Core Banking net income / Consolidated net income



79.78 %


87.33 %


(7.55)

Core Banking operating net income / Consolidated operating net income



102.51 %


86.13 %


16.38

nm = not meaningful







 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Mortgage Banking



Year to Date


% Change

(Dollars in thousands)



Jun 30, 2022


Jun 30, 2021


Year over Year

Non-Interest Income Adjustments








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



51,048


(3,692)


nm

Total non-interest income adjustments

a


51,048


(3,692)


nm









Total non-interest expense adjustments

b


—


—


nm









Net interest income

c


2,837


6,705


(58) %









Non-interest income (GAAP)

d


91,702


109,968


(17) %

Less: Non-interest income adjustments

a


(51,048)


3,692


nm

Operating non-interest income (non-GAAP)

e


40,654


113,660


(64) %









Revenue (GAAP)

f=c+d


94,539


116,673


(19) %

Operating revenue (non-GAAP)

g=c+e


43,491


120,365


(64) %









Non-interest expense (GAAP) (1)

h


48,773


78,846


(38) %

Less: Non-interest expense adjustments

b


—


—


nm

Operating non-interest expense (non-GAAP)

i


48,773


78,846


(38) %









Net income (GAAP)

j


34,324


28,370


21 %

Provision for income taxes



11,442


9,457


21 %

Income before provision for income taxes



45,766


37,827


21 %

Provision for credit losses



—


—


nm

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

k


45,766


37,827


21 %

Less: Non-interest income adjustments

a


(51,048)


3,692


nm

Add: Non-interest expense adjustments

b


—


—


nm

Operating PPNR (non-GAAP)

l


(5,282)


41,519


(113) %









Net income (GAAP)

j


34,324


28,370


21 %

Less: Non-interest income adjustments

a


(51,048)


3,692


nm

Add: Non-interest expense adjustments

b


—


—


nm

Tax effect of adjustments



12,762


(923)


nm

Operating net income (non-GAAP)

m


(3,962)


31,139


(113) %









Efficiency ratio

h / f


51.59 %


67.58 %


(15.99)

Operating efficiency ratio

i / g


112.15 %


65.51 %


46.64

Mortgage Banking net income / Consolidated net income



20.22 %


12.67 %


7.55

Mortgage Banking operating net income / Consolidated operating net income



(2.51) %


13.87 %


(16.38)

nm = not meaningful







 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/umpqua-reports-second-quarter-2022-results-301590375.html

SOURCE Umpqua Holdings Corporation

FAQ

What were Umpqua's net income results for Q2 2022?

Umpqua reported a net income of $78.6 million for the second quarter of 2022.

How much did Umpqua's loan balances increase in Q2 2022?

Loan balances increased by $1.5 billion, or 6.3%, in the second quarter of 2022.

What was the net interest margin for Umpqua in Q2 2022?

The net interest margin for Umpqua was 3.41% in Q2 2022.

What significant challenges did Umpqua face in Q2 2022?

Umpqua experienced a decrease in total deposits by $567.2 million and an increase in the provision for credit losses to $18.7 million.

When was Umpqua's Q2 2022 earnings conference call?

Umpqua held its second quarter 2022 earnings conference call on July 21, 2022.

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UMPQUA BANK NAMED OREGON'S MOST ADMIRED FINANCIAL SERVICES COMPANY

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