Umpqua Reports Third Quarter 2021 Results

Rhea-AI Summary

Umpqua Holdings Corporation (NASDAQ: UMPQ) reported its third-quarter 2021 results, highlighting a robust non-PPP loan growth of $480 million. Net interest income rose by $5.3 million to $235.1 million, with a net interest margin of 3.21%. However, non-interest income decreased by $17.4 million, primarily due to lower mortgage banking revenue. The total risk-based capital ratio stood at 14.9%. The company repurchased 4 million shares for $78.2 million and declared a quarterly dividend of $0.21. Umpqua aims to enhance growth through its combination with Columbia Banking System, creating a leading regional bank.

Positive

• Non-PPP loan growth of $480 million.
• Net interest income increased by $5.3 million to $235.1 million.
• Net interest margin improved to 3.21%.
• Estimated total risk-based capital ratio of 14.9%.
• Increased tangible book value per share to $12.52.

Negative

• Non-interest income decreased by $17.4 million.
• Earnings per diluted share dropped to $0.49 from $0.53.

PORTLAND, Ore., Oct. 20, 2021 /PRNewswire/ --

$0.49		$108		15.88%		14.9%
Net earnings per diluted common share		Net income ($ in millions)		Return on average tangible common equity ("ROATCE")1		Total risk-based capital ratio (estimated)

 

 

CEO Commentary

"Umpqua's third quarter results are highlighted by the robust non-PPP (Paycheck Protection Program) loan growth of $480 million and continued reduction of our total cost of deposits, now down to just eight basis points" said Cort O'Haver, President and CEO. "Our growth initiatives will continue as we work to execute our previously announced combination with Columbia Banking System. Combined, we will be the leading regional bank focused on the West Coast. We are creating a company with enhanced scale to fuel organic growth as we continue to create value to our shareholders."

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

 

THIRD QUARTER HIGHLIGHTS
Net Interest Income and NIM	•   Net interest income increased by $5.3 million on a quarter to quarter basis primarily due to higher interest income and lower interest expense in the current period.
	•   Net interest margin was 3.21%, up one basis point from the prior period due to higher average non-PPP loan balances and lower interest expense.
Non-Interest Income and Expense	•   Non-interest income decreased by $17.4 million primarily due to lower net mortgage banking revenue of $10.3 million and the $4.4 million gain related to the sale of Umpqua Investments in the prior period.
	•   Non-interest expense decreased by $5.6 million due to lower salaries and benefit expenses of $3.9 million.
Credit Quality	•   Net charge-offs decreased by 14 basis points to 0.11% of average loans and leases (annualized).
	•   A recapture of the provision for credit losses of $18.9 million was recorded in the period as modeled economic conditions improve.
	•   Non-performing assets to total assets remained at 0.17%, consistent with the prior period.
Capital	•   Estimated total risk-based capital ratio of 14.9% and estimated Tier 1 Risk Based Capital ratio of 12.1%.
	•   Paid a quarterly cash dividend of $0.21 per common share on August 31, 2021 to shareholders of record as of August 20, 2021.
Notable items	•   Repurchased 4 million shares for a total of $78.2 million during the third quarter.
	•   $3.8 million in exit disposal costs related to store consolidations and back-office lease exits.

 

3Q21 KEY FINANCIAL DATA
PERFORMANCE METRICS	3Q21			2Q21			3Q20
Return on average assets	1.40%			1.54%			1.68%
Return on average tangible common equity	15.88%			17.33%			19.62%
Net interest margin	3.21%			3.20%			3.08%
Efficiency ratio - consolidated	59.44%			58.96%			54.52%
Loan to deposit ratio	81.65%			84.67%			90.91%
INCOME STATEMENT ($ in 000s, excl. per share data)	3Q21			2Q21			3Q20
Net interest income	$235,074			$229,763			$216,574
(Recapture) of provision for credit losses	($18,919)			($22,996)			($338)
Non-interest income	$73,705			$91,075			$131,924
Non-interest expense	$183,753			$189,400			$190,207
Earnings per common share - diluted	$0.49			$0.53			$0.57
Dividends paid per share	$0.21			$0.21			$0.21
BALANCE SHEET	3Q21			2Q21			3Q20
Total assets	$30.9	B		$30.3	B		$29.4	B
Loans and leases	$22.0	B		$22.1	B		$22.4	B
Total deposits	$26.9	B		$26.2	B		$24.7	B
Tangible book value per share1	$12.52			$12.49			$11.77
Book value per common share	$12.57			$12.54			$11.85

Balance Sheet

Total consolidated assets were $30.9 billion as of September 30, 2021, compared to $30.3 billion as of June 30, 2021 and $29.4 billion as of September 30, 2020.  Including secured off-balance sheet lines of credit, total available liquidity was $16.2 billion as of September 30, 2021, representing 52% of total assets and 60% of total deposits.

Gross loans and leases were $22.0 billion as of September 30, 2021, a decrease of $173.8 million relative to June 30, 2021.  The net decrease in gross loans and leases is primarily due to an increase of non-PPP loans of $479.7 million or 2.3% offset by the expected decrease in PPP loan balances of $653.5 million due to processed forgiveness and payoffs. Multifamily balances increased $259.3 million and residential mortgage balances increased $185.4 million during the quarter.  The decrease in commercial term loan balances of $588.8 million includes the aforementioned decrease of PPP loan balances of $653.5 million.  Please refer to the additional loan tables in the Q3 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.

Total deposits were $26.9 billion as of September 30, 2021, an increase of $754.8 million or 2.9% from $26.2 billion as of June 30, 2021. This increase was primarily attributable to growth in non-interest bearing demand deposits of $402.2 million, growth in interest bearing demand deposits of $291.8 million and growth in money market balances of $220.8 million, partially offset by a decline in time deposits of $264.4 million.

Net Interest Income

Net interest income was $235.1 million for the third quarter of 2021, up $5.3 million from the prior quarter.  The increase was primarily driven by an increase of $2.7 million in interest income, as a result of higher non-PPP average loan balances, and a decrease of $2.6 million in interest expense due to the decline in time deposits and term debt in the quarter compared to the prior period.

The Company's net interest margin was 3.21% for the third quarter of 2021, up one basis point from 3.20% for the second quarter of 2021 as a result of the increase in net interest income.

Credit Quality

The allowance for credit losses was $269.3 million, or 1.23% of loans and leases, as of September 30, 2021, which was down from $294.4 million, or 1.33% of loans and leases, as of June 30, 2021.  There was a recapture of provision for credit losses of $18.9 million as a result of improvement in economic forecasts used in the credit models.

Net charge-offs as a percentage of average loans and leases decreased by 14 basis points to 0.11% of average loans and leases (annualized) for the third quarter of 2021. The decrease in net charge-offs for the quarter was primarily due to continued stable credit performance of the loan and lease portfolio. As of September 30, 2021, non-performing assets were 0.17% of total assets, compared to 0.17% as of June 30, 2021 and 0.27% as of September 30, 2020.

Current Expected Credit Loss (CECL)

On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").  In applying CECL, we use credit models that factor in economic forecasts to project life of loan performance.  At the beginning of the COVID-19 pandemic, economic forecasts projected significant, negative COVID-19 related impacts to the economy; therefore we recorded significant provisions for credit losses in the first and second quarters of 2020. As those future economic forecasts stabilized as well as incorporating loan mix changes, we recorded a recapture of $18.9 million of the allowance for credit losses in the current period.

Non-interest Income

Non-interest income was $73.7 million for the third quarter of 2021, down $17.4 million from the prior quarter driven primarily by a decrease in net mortgage banking revenue of $10.3 million and the $4.4 million gain on the sale of Umpqua Investments in the prior period.

Revenue from the origination and sale of residential mortgages was $30.3 million for the third quarter of 2021, a decrease of $11.1 million from the prior quarter. This decrease reflects a sequential quarter decrease of $265.7 million or 21.2% in for-sale mortgage origination volume and a decrease of 23 basis points in the mortgage banking gain on sale margin to 3.07% for the third quarter of 2021. Of the current quarter's mortgage production, 61% related to purchase activity, compared to 56% for the prior quarter and 46% for the same period of the prior year.

Non-interest Expense

Non-interest expense was $183.8 million for the third quarter of 2021, down $5.6 million from the prior quarter level. This decrease was primarily due to decreases in salaries and employee benefit expenses of $3.9 million from the prior period due to lower mortgage banking production, a decrease in consulting and professional fees of $1.0 million, a decrease in occupancy and equipment expenses of $0.7 million, offset by an increase in FDIC assessment costs of $0.5 million.

Capital

As of September 30, 2021, the Company's tangible book value per common share² increased to $12.52, compared to $12.49 in the prior quarter and $11.77 in the same period of the prior year. 

The Company's estimated total risk-based capital ratio was 14.9% and its estimated Tier 1 common to risk weighted

assets ratio was 12.1% as of September 30, 2021. The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of September 30, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

Segment Disclosures

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

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

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures.  The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs).  The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.

The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

(In thousands, except per share data)		Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020
Total shareholders' equity		$	2,722,379			$	2,766,316			$	2,681,869			$	2,704,577			$	2,610,244
Subtract:
Goodwill		—				—				2,715				2,715				2,715
Other intangible assets, net		9,970				11,100				12,230				13,360				14,606
Tangible common shareholders' equity		$	2,712,409			$	2,755,216			$	2,666,924			$	2,688,502			$	2,592,923
Total assets		$	30,891,479			$	30,284,965			$	30,036,680			$	29,235,175			$	29,437,441
Subtract:
Goodwill		—				—				2,715				2,715				2,715
Other intangible assets, net		9,970				11,100				12,230				13,360				14,606
Tangible assets		$	30,881,509			$	30,273,865			$	30,021,735			$	29,219,100			$	29,420,120
Common shares outstanding at period end		216,622				220,626				220,491				220,226				220,222
Total shareholders' equity to total assets ratio		8.81		%		9.13		%		8.93		%		9.25		%		8.87		%
Tangible common equity ratio		8.78		%		9.10		%		8.88		%		9.20		%		8.81		%
Book value per common share		$	12.57			$	12.54			$	12.16			$	12.28			$	11.85
Tangible book value per common share		$	12.52			$	12.49			$	12.10			$	12.21			$	11.77

 

About Umpqua Holdings Corporation

Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada.  Umpqua Holdings Corporation is headquartered in Portland, Oregon. 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 has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the sixteenth consecutive year. In addition to its retail banking presence, Umpqua Bank also owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses.

Earnings Conference Call Information

The Company will host its third quarter 2021 earnings conference call on October 21, 2021, at 10:00 a.m. PT (1:00 p.m. ET).  During the call, the Company will provide an update on recent activities and discuss its third quarter 2021 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 4277385.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 4277385. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; 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 announcement or completion of the transaction. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company's Board of Directors, and may be subject to regulatory approval or conditions.

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
	Quarter Ended																				% Change
(In thousands, except per share data)	Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Interest income:
Loans and leases	$	224,403			$	223,470			$	221,141			$	240,815			$	229,457			0	%		(2)	%
Interest and dividends on investments:
Taxable	16,102				14,619				13,112				11,951				10,168				10	%		58	%
Exempt from federal income tax	1,470				1,487				1,534				1,523				1,490				(1)	%		(1)	%
Dividends	213				405				598				659				710				(47)	%		(70)	%
Temporary investments and interest bearing deposits	1,237				774				624				531				474				60	%		161	%
Total interest income	243,425				240,755				237,009				255,479				242,299				1	%		0	%
Interest expense:
Deposits	5,100				7,016				10,678				14,567				19,121				(27)	%		(73)	%
Securities sold under agreement to repurchase and federal funds purchased	88				68				76				93				84				29	%		5	%
Borrowings	149				866				1,772				2,765				3,271				(83)	%		(95)	%
Junior subordinated debentures	3,014				3,042				3,052				3,147				3,249				(1)	%		(7)	%
Total interest expense	8,351				10,992				15,578				20,572				25,725				(24)	%		(68)	%
Net interest income	235,074				229,763				221,431				234,907				216,574				2	%		9	%
(Recapture) provision for credit losses	(18,919)				(22,996)				—				29				(338)				(18)	%		nm
Non-interest income:
Service charges on deposits	10,941				10,310				9,647				10,202				10,405				6	%		5	%
Card-based fees	9,111				10,274				7,374				7,754				7,118				(11)	%		28	%
Brokerage revenue	31				1,135				3,915				4,093				3,686				(97)	%		(99)	%
Residential mortgage banking revenue, net	34,150				44,443				65,033				79,028				90,377				(23)	%		(62)	%
Gain on sale of debt securities, net	—				—				4				—				—				nm			nm
(Loss) gain on equity securities, net	(343)				4				(706)				(173)				(112)				nm			206	%
Gain on loan and lease sales, net	4,208				5,318				1,373				3,374				1,092				(21)	%		285	%
BOLI income	2,038				2,092				2,071				2,067				2,087				(3)	%		(2)	%
Other income	13,569				17,499				20,089				17,615				17,271				(22)	%		(21)	%
Total non-interest income	73,705				91,075				108,800				123,960				131,924				(19)	%		(44)	%
Non-interest expense:
Salaries and employee benefits	117,636				121,573				124,134				132,460				120,337				(3)	%		(2)	%
Occupancy and equipment, net	33,944				34,657				34,635				41,758				36,720				(2)	%		(8)	%
Intangible amortization	1,130				1,130				1,130				1,246				1,247				0	%		(9)	%
FDIC assessments	2,136				1,607				2,599				3,014				2,989				33	%		(29)	%
Other expenses	28,907				30,433				25,094				32,834				28,914				(5)	%		0	%
Total non-interest expense	183,753				189,400				187,592				211,312				190,207				(3)	%		(3)	%
Income before provision for income taxes	143,945				154,434				142,639				147,526				158,629				(7)	%		(9)	%
Provision (benefit) for income taxes	35,879				38,291				34,902				(3,204)				33,758				(6)	%		6	%
Net income	$	108,066			$	116,143			$	107,737			$	150,730			$	124,871			(7)	%		(13)	%
Weighted average basic shares outstanding	218,416				220,593				220,367				220,225				220,221				(1)	%		(1)	%
Weighted average diluted shares outstanding	218,978				221,022				220,891				220,663				220,418				(1)	%		(1)	%
Earnings per common share – basic	$	0.49			$	0.53			$	0.49			$	0.68			$	0.57			(8)	%		(14)	%
Earnings per common share – diluted	$	0.49			$	0.53			$	0.49			$	0.68			$	0.57			(8)	%		(14)	%
nm = not meaningful

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
		Nine Months Ended								% Change
(In thousands, except per share data)		Sep 30, 2021				Sep 30, 2020				Year over Year
Interest income:
Loans and leases		$	669,014			$	710,624			(6)	%
Interest and dividends on investments:
Taxable		43,833				35,788				22	%
Exempt from federal income tax		4,491				4,572				(2)	%
Dividends		1,216				1,956				(38)	%
Temporary investments and interest bearing deposits		2,635				4,208				(37)	%
Total interest income		721,189				757,148				(5)	%
Interest expense:
Deposits		22,794				85,633				(73)	%
Securities sold under agreement to repurchase and federal funds purchased		232				673				(66)	%
Borrowings		2,787				11,156				(75)	%
Junior subordinated debentures		9,108				12,074				(25)	%
Total interest expense		34,921				109,536				(68)	%
Net interest income		686,268				647,612				6	%
(Recapture) provision for credit losses		(41,915)				204,832				(120)	%
Non-interest income:
Service charges on deposits		30,898				30,635				1	%
Card-based fees		26,759				20,436
Brokerage revenue		5,081				11,506				(56)	%
Residential mortgage banking revenue, net		143,626				191,794				(25)	%
Gain on sale of debt securities, net		4				190				(98)	%
(Loss) gain on equity securities, net		(1,045)				942				(211)	%
Gain on loan and lease sales, net		10,899				3,333				227	%
BOLI income		6,201				6,332				(2)	%
Other income		51,157				22,881				124	%
Total non-interest income		273,580				288,049				(5)	%
Non-interest expense:
Salaries and employee benefits		363,343				346,787				5	%
Occupancy and equipment, net		103,236				109,892				(6)	%
Intangible amortization		3,390				3,740				(9)	%
FDIC assessments		6,342				9,502				(33)	%
Goodwill impairment		—				1,784,936				nm
Other expenses		84,434				79,918				6	%
Total non-interest expense		560,745				2,334,775				(76)	%
Income (loss) before provision for income taxes		441,018				(1,603,946)				(127)	%
Provision for income taxes		109,072				70,204				55	%
Net income (loss)		$	331,946			$	(1,674,150)			(120)	%
Weighted average basic shares outstanding		219,791				220,216				0	%
Weighted average diluted shares outstanding		220,278				220,216				0	%
Earnings (loss) per common share – basic		$	1.51			$	(7.60)			(120)	%
Earnings (loss) per common share – diluted		$	1.51			$	(7.60)			(120)	%
nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																					% Change
(In thousands, except per share data)	Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Assets:
Cash and due from banks	$	395,555			$	397,526			$	379,361			$	370,219			$	370,595			0	%		7	%
Interest bearing cash and temporary investments	3,349,034				2,688,285				2,861,820				2,202,962				1,849,132				25	%		81	%
Investment securities:
Equity and other, at fair value	81,575				82,099				82,771				83,077				82,769				(1)	%		(1)	%
Available for sale, at fair value	3,723,171				3,473,950				3,167,825				2,932,558				2,898,700				7	%		28	%
Held to maturity, at amortized cost	2,795				2,876				2,954				3,034				3,088				(3)	%		(9)	%
Loans held for sale	352,466				429,052				376,481				766,225				683,960				(18)	%		(48)	%
Loans and leases	21,969,940				22,143,739				22,160,860				21,779,367				22,426,473				(1)	%		(2)	%
Allowance for credit losses on loans and leases	(257,560)				(279,887)				(311,283)				(328,401)				(345,049)				(8)	%		(25)	%
Net loans and leases	21,712,380				21,863,852				21,849,577				21,450,966				22,081,424				(1)	%		(2)	%
Restricted equity securities	10,946				15,247				22,057				41,666				50,062				(28)	%		(78)	%
Premises and equipment, net	172,624				172,546				176,571				178,050				185,104				0	%		(7)	%
Operating lease right-of-use assets	88,379				95,030				100,643				104,937				107,321				(7)	%		(18)	%
Goodwill	—				—				2,715				2,715				2,715				nm			(100)	%
Other intangible assets, net	9,970				11,100				12,230				13,360				14,606				(10)	%		(32)	%
Residential mortgage servicing rights, at fair value	105,834				102,699				100,413				92,907				93,248				3	%		13	%
Bank owned life insurance	325,646				324,998				322,867				323,470				326,120				0	%		0	%
Deferred tax asset, net	8,402				—				10,905				—				—				nm			nm
Other assets	552,702				625,705				567,490				669,029				688,597				(12)	%		(20)	%
Total assets	$	30,891,479			$	30,284,965			$	30,036,680			$	29,235,175			$	29,437,441			2	%		5	%
Liabilities:
Deposits	$	26,908,397			$	26,153,553			$	25,886,833			$	24,622,201			$	24,669,783			3	%		9	%
Securities sold under agreements to repurchase	467,760				480,302				420,402				375,384				388,028				(3)	%		21	%
Borrowings	6,367				111,405				281,444				771,482				996,520				(94)	%		(99)	%
Junior subordinated debentures, at fair value	299,508				287,723				281,580				255,217				247,045				4	%		21	%
Junior subordinated debentures, at amortized cost	88,098				88,155				88,212				88,268				88,325				0	%		0	%
Operating lease liabilities	100,557				106,195				109,014				113,593				115,790				(5)	%		(13)	%
Deferred tax liability, net	—				2,497				—				5,441				13,239				(100)	%		(100)	%
Other liabilities	298,413				288,819				287,326				299,012				308,467				3	%		(3)	%
Total liabilities	28,169,100				27,518,649				27,354,811				26,530,598				26,827,197				2	%		5	%
Shareholders' equity:
Common stock	3,442,085				3,517,641				3,515,248				3,514,599				3,512,153				(2)	%		(2)	%
Accumulated deficit	(739,915)				(801,954)				(871,511)				(932,767)				(1,036,931)				(8)	%		(29)	%
Accumulated other comprehensive income	20,209				50,629				38,132				122,745				135,022				(60)	%		(85)	%
Total shareholders' equity	2,722,379				2,766,316				2,681,869				2,704,577				2,610,244				(2)	%		4	%
Total liabilities and shareholders' equity	$	30,891,479			$	30,284,965			$	30,036,680			$	29,235,175			$	29,437,441			2	%		5	%
Common shares outstanding at period end	216,622				220,626				220,491				220,226				220,222				(2)	%		(2)	%
Book value per common share	$	12.57			$	12.54			$	12.16			$	12.28			$	11.85			0	%		6	%
Tangible book value per common share	$	12.52			$	12.49			$	12.10			$	12.21			$	11.77			0	%		6	%
Tangible equity - common	$	2,712,409			$	2,755,216			$	2,666,924			$	2,688,502			$	2,592,923			(2)	%		5	%
Tangible common equity to tangible assets	8.78		%		9.10		%		8.88		%		9.20		%		8.81		%		(0.32)			(0.03)
nm = not meaningful

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
	Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				% Change
(Dollars in thousands)	Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net	$	3,561,764			$	3,580,386			$	3,455,773			$	3,505,802			$	3,533,776			(1)	%		1	%
Owner occupied term, net	2,330,338				2,398,326				2,358,169				2,333,945				2,411,098				(3)	%		(3)	%
Multifamily, net	3,813,024				3,553,704				3,421,320				3,349,196				3,389,034				7	%		13	%
Construction & development, net	882,778				857,866				876,297				828,478				757,462				3	%		17	%
Residential development, net	177,148				193,904				190,841				192,761				163,400				(9)	%		8	%
Commercial:
Term, net (1)	3,159,466				3,748,269				4,350,763				4,024,467				4,246,229				(16)	%		(26)	%
Lines of credit & other, net	930,350				908,518				825,162				862,760				894,782				2	%		4	%
Leases & equipment finance, net	1,457,248				1,437,372				1,420,977				1,456,630				1,496,650				1	%		(3)	%
Residential:
Mortgage, net	4,330,860				4,145,432				3,958,644				3,871,906				4,042,416				4	%		7	%
Home equity loans & lines, net	1,133,823				1,118,278				1,097,168				1,136,064				1,172,697				1	%		(3)	%
Consumer & other, net	193,141				201,684				205,746				217,358				318,929				(4)	%		(39)	%
Total loans and leases, net of deferred fees and costs	$	21,969,940			$	22,143,739			$	22,160,860			$	21,779,367			$	22,426,473			(1)	%		(2)	%
(1)    The Bank participates in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include the following net PPP loan balances:
Net PPP loan balance	$726,737				$	1,380,212			$	2,047,793			$	1,750,211			$	2,007,379			(47)	%		(64)	%
Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net	16		%		16		%		15		%		16		%		16		%
Owner occupied term, net	11		%		11		%		11		%		11		%		11		%
Multifamily, net	17		%		16		%		15		%		15		%		15		%
Construction & development, net	4		%		4		%		4		%		4		%		3		%
Residential development, net	1		%		1		%		1		%		1		%		1		%
Commercial:
Term, net	14		%		17		%		20		%		18		%		19		%
Lines of credit & other, net	4		%		4		%		4		%		4		%		4		%
Leases & equipment finance, net	7		%		6		%		6		%		7		%		7		%
Residential:
Mortgage, net	20		%		19		%		18		%		18		%		18		%
Home equity loans & lines, net	5		%		5		%		5		%		5		%		5		%
Consumer & other, net	1		%		1		%		1		%		1		%		1		%
Total	100		%		100		%		100		%		100		%		100		%

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
	Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				% Change
(Dollars in thousands)	Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Deposits:
Demand, non-interest bearing	$	11,121,127			$	10,718,921			$	10,500,482			$	9,632,773			$	9,475,244			4	%		17	%
Demand, interest bearing	3,758,019				3,466,251				3,244,624				3,051,487				2,931,990				8	%		28	%
Money market	7,780,442				7,559,621				7,554,798				7,173,920				7,160,838				3	%		9	%
Savings	2,325,929				2,221,524				2,109,211				1,912,752				1,848,639				5	%		26	%
Time	1,922,880				2,187,236				2,477,718				2,851,269				3,253,072				(12)	%		(41)	%
Total	$	26,908,397			$	26,153,553			$	25,886,833			$	24,622,201			$	24,669,783			3	%		9	%
Total core deposits (1)	$	26,029,814			$	25,122,851			$	24,740,621			$	23,298,561			$	23,134,283			4	%		13	%
Deposit mix:
Demand, non-interest bearing	41		%		41		%		41		%		39		%		38		%
Demand, interest bearing	14		%		13		%		12		%		12		%		12		%
Money market	29		%		29		%		29		%		29		%		29		%
Savings	9		%		9		%		8		%		8		%		8		%
Time	7		%		8		%		10		%		12		%		13		%
Total	100		%		100		%		100		%		100		%		100		%
Number of open accounts:
Demand, non-interest bearing	425,337				424,626				422,792				420,050				423,658
Demand, interest bearing	70,749				71,411				72,156				72,811				73,812
Money market	57,794				58,289				58,409				58,609				59,083
Savings	161,698				161,902				161,432				160,192				162,234
Time	37,172				39,560				43,637				48,292				52,572
Total	752,750				755,788				758,426				759,954				771,359
Average balance per account:
Demand, non-interest bearing	$	26.1			$	25.2			$	24.8			$	22.9			$	22.4
Demand, interest bearing	53.1				48.5				45.0				41.9				39.7
Money market	134.6				129.7				129.3				122.4				121.2
Savings	14.4				13.7				13.1				11.9				11.4
Time	51.7				55.3				56.8				59.0				61.9
Total	$	35.7			$	34.6			$	34.1			$	32.4			$	32.0

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

Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Non-performing assets:
Loans and leases on non-accrual status		$	24,152			$	20,673			$	29,216			$	31,076			$	26,425			17	%		(9)	%
Loans and leases past due 90+ days and accruing (1)		27,490				29,144				25,612				36,361				50,269				(6)	%		(45)	%
Total non-performing loans and leases		51,642				49,817				54,828				67,437				76,694				4	%		(33)	%
Other real estate owned		1,868				181				1,405				1,810				2,369				932	%		(21)	%
Total non-performing assets		$	53,510			$	49,998			$	56,233			$	69,247			$	79,063			7	%		(32)	%
Performing restructured loans and leases		$	9,849			$	13,072			$	9,921			$	14,991			$	15,819			(25)	%		(38)	%
Loans and leases past due 31-89 days		$	41,326			$	30,646			$	51,120			$	72,047			$	66,155			35	%		(38)	%
Loans and leases past due 31-89 days to total loans and leases		0.19		%		0.14		%		0.23		%		0.33		%		0.29		%
Non-performing loans and leases to total loans and leases (1)		0.24		%		0.22		%		0.25		%		0.31		%		0.34		%
Non-performing assets to total assets(1)		0.17		%		0.17		%		0.19		%		0.24		%		0.27		%

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

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	279,887			$	311,283			$	328,401			$	345,049			$	356,745			(10)	%		(22)	%
(Recapture) provision for credit losses on loans and leases		(16,132)				(17,775)				526				3,104				1,785				(9)	%		(1,004)	%
Charge-offs		(10,373)				(17,079)				(20,915)				(23,942)				(16,646)				(39)	%		(38)	%
Recoveries		4,178				3,458				3,271				4,190				3,165				21	%		32	%
Net charge-offs		(6,195)				(13,621)				(17,644)				(19,752)				(13,481)				(55)	%		(54)	%
Balance, end of period		$	257,560			$	279,887			$	311,283			$	328,401			$	345,049			(8)	%		(25)	%
Reserve for unfunded commitments
Balance, beginning of period		$	14,539			$	19,760			$	20,286			$	24,306			$	26,368			(26)	%		(45)	%
(Recapture) provision for credit losses on unfunded commitments		(2,787)				(5,221)				(526)				(4,020)				(2,062)				(47)	%		35	%
Balance, end of period		11,752				14,539				19,760				20,286				24,306				(19)	%		(52)	%
Total Allowance for credit losses (ACL)		$	269,312			$	294,426			$	331,043			$	348,687			$	369,355			(9)	%		(27)	%
Net charge-offs to average loans and leases (annualized)		0.11		%		0.25		%		0.33		%		0.35		%		0.24		%
Recoveries to gross charge-offs		40.28		%		20.25		%		15.64		%		17.50		%		19.01		%
ACLLL to loans and leases		1.17		%		1.26		%		1.40		%		1.51		%		1.54		%
ACL to loans and leases		1.23		%		1.33		%		1.49		%		1.60		%		1.65		%
nm = not meaningful

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Nine Months Ended								% Change
(Dollars in thousands)		Sep 30, 2021				Sep 30, 2020				Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	328,401			$	157,629			108	%
Impact of adoption of CECL		—				49,999				nm
Adjusted balance, beginning of period		328,401				207,628				58	%
(Recapture) provision for credit losses on loans and leases		(33,381)				188,771				(118)	%
Charge-offs		(48,367)				(60,554)				(20)	%
Recoveries		10,907				9,204				19	%
Net charge-offs		(37,460)				(51,350)				(27)	%
Balance, end of period		$	257,560			$	345,049			(25)	%
Reserve for unfunded commitments
Balance, beginning of period		$	20,286			$	5,106			297	%
Impact of adoption of CECL		—				3,238				nm
Adjusted balance, beginning of period		20,286				8,344				143	%
(Recapture) provision for credit losses on unfunded commitments		(8,534)				15,962				(153)	%
Balance, end of period		11,752				24,306				(52)	%
Total Allowance for credit losses (ACL)		$	269,312			$	369,355			(27)	%
Net charge-offs to average loans and leases (annualized)		0.23		%		0.31		%
Recoveries to gross charge-offs		22.55		%		15.20		%
nm = not meaningful

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Quarter Ended															% Change
		Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Seq. Quarter			Year over Year
Average Rates:
Yield on loans held for sale		3.15	%		3.18	%		2.75	%		3.19	%		3.13	%		(0.03)			0.02
Yield on loans and leases		4.02	%		3.99	%		4.02	%		4.24	%		3.96	%		0.03			0.06
Yield on taxable investments		1.90	%		1.87	%		1.86	%		1.77	%		1.56	%		0.03			0.34
Yield on tax-exempt investments (1)		3.01	%		3.02	%		3.03	%		3.08	%		3.11	%		(0.01)			(0.10)
Yield on interest bearing cash and temporary investments		0.15	%		0.11	%		0.10	%		0.10	%		0.10	%		0.04			0.05
Total yield on earning assets (1)		3.32	%		3.35	%		3.41	%		3.64	%		3.45	%		(0.03)			(0.13)
Cost of interest bearing deposits		0.13	%		0.18	%		0.29	%		0.38	%		0.49	%		(0.05)			(0.36)
Cost of securities sold under agreements
to repurchase and fed funds purchased		0.07	%		0.06	%		0.08	%		0.09	%		0.09	%		0.01			(0.02)
Cost of borrowings		1.88	%		1.62	%		1.33	%		1.18	%		1.23	%		0.26			0.65
Cost of junior subordinated debentures		3.18	%		3.30	%		3.60	%		3.73	%		4.03	%		(0.12)			(0.85)
Total cost of interest bearing liabilities		0.20	%		0.27	%		0.38	%		0.49	%		0.59	%		(0.07)			(0.39)
Net interest spread (1)		3.12	%		3.08	%		3.03	%		3.15	%		2.85	%		0.04			0.27
Net interest margin (1)		3.21	%		3.20	%		3.18	%		3.35	%		3.08	%		0.01			0.13
Performance Ratios:
Return on average assets		1.40	%		1.54	%		1.49	%		2.04	%		1.68	%		(0.14)			(0.28)
Return on average tangible assets		1.40	%		1.55	%		1.49	%		2.04	%		1.68	%		(0.15)			(0.28)
Return on average common equity		15.82	%		17.25	%		16.33	%		22.92	%		19.48	%		(1.43)			(3.66)
Return on average tangible common equity		15.88	%		17.33	%		16.43	%		23.07	%		19.62	%		(1.45)			(3.74)
Efficiency ratio – Consolidated		59.44	%		58.96	%		56.74	%		58.82	%		54.52	%		0.48			4.92
Efficiency ratio – Bank		58.54	%		58.31	%		55.51	%		57.77	%		53.41	%		0.23			5.13

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

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Nine Months Ended						% Change
		Sep 30, 2021			Sep 30, 2020			Year over Year
Average Rates:
Yield on loans held for sale		2.99	%		3.61	%		(0.62)
Yield on loans and leases		4.01	%		4.21	%		(0.20)
Yield on taxable investments		1.88	%		1.81	%		0.07
Yield on tax-exempt investments (1)		3.02	%		3.14	%		(0.12)
Yield on interest bearing cash and temporary investments		0.12	%		0.38	%		(0.26)
Total yield on earning assets (1)		3.36	%		3.73	%		(0.37)
Cost of interest bearing deposits		0.20	%		0.73	%		(0.53)
Cost of securities sold under agreements
to repurchase and fed funds purchased		0.07	%		0.25	%		(0.18)
Cost of borrowings		1.43	%		1.43	%		—
Cost of junior subordinated debentures		3.35	%		5.00	%		(1.65)
Total cost of interest bearing liabilities		0.28	%		0.84	%		(0.56)
Net interest spread (1)		3.08	%		2.89	%		0.19
Net interest margin (1)		3.20	%		3.19	%		0.01
Performance Ratios:
Return on average assets		1.48	%		(7.67)	%		9.15
Return on average tangible assets		1.48	%		(7.83)	%		9.31
Return on average common equity		16.47	%		(72.01)	%		88.48
Return on average tangible common equity		16.55	%		(89.45)	%		106.00
Efficiency ratio – Consolidated		58.35	%		249.26	%		(190.91)
Efficiency ratio – Bank		57.42	%		247.93	%		(190.51)

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

Umpqua Holdings Corporation Average Balances
(Unaudited)
	Quarter Ended																				% Change
(Dollars in thousands)	Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Temporary investments and interest bearing cash	$	3,224,846			$	2,835,474			$	2,483,451			$	2,066,572			$	1,827,818			14	%		76	%
Investment securities, taxable	3,436,895				3,210,771				2,945,896				2,850,550				2,797,547				7	%		23	%
Investment securities, tax-exempt	245,904				247,282				252,741				245,997				237,165				(1)	%		4	%
Loans held for sale	465,805				468,960				703,557				696,688				669,646				(1)	%		(30)	%
Loans and leases	21,864,387				22,040,794				21,692,639				22,138,283				22,560,076				(1)	%		(3)	%
Total interest earning assets	29,237,837				28,803,281				28,078,284				27,998,090				28,092,252				2	%		4	%
Goodwill and other intangible assets, net	10,609				12,615				15,598				16,775				18,021				(16)	%		(41)	%
Total assets	30,614,374				30,156,017				29,392,490				29,396,311				29,533,871				2	%		4	%
Non-interest bearing demand deposits	10,960,686				10,582,197				9,897,749				9,587,081				9,335,350				4	%		17	%
Interest bearing deposits	15,679,755				15,474,743				15,166,198				15,165,049				15,451,816				1	%		1	%
Total deposits	26,640,441				26,056,940				25,063,947				24,752,130				24,787,166				2	%		7	%
Interest bearing liabilities	16,583,803				16,500,106				16,444,694				16,822,808				17,205,775				1	%		(4)	%
Shareholders' equity - common	2,709,641				2,700,010				2,674,871				2,615,676				2,549,703				0	%		6	%
Tangible common equity (1)	2,699,032				2,687,395				2,659,273				2,598,901				2,531,682				0	%		7	%

Umpqua Holdings Corporation Average Balances
(Unaudited)
		Nine Months Ended								% Change
(Dollars in thousands)		Sep 30, 2021				Sep 30, 2020				Year over Year
Temporary investments and interest bearing cash		$	2,850,639			$	1,493,352			91	%
Investment securities, taxable		3,199,653				2,778,460				15	%
Investment securities, tax-exempt		248,617				238,059				4	%
Loans held for sale		545,237				551,583				(1)	%
Loans and leases		21,866,569				22,063,582				(1)	%
Total interest earning assets		28,710,715				27,125,036				6	%
Goodwill and other intangible assets, net		12,922				605,548				(98)	%
Total assets		30,058,769				29,149,758				3	%
Non-interest bearing demand deposits		10,484,104				8,237,095				27	%
Interest bearing deposits		15,442,113				15,649,765				(1)	%
Total deposits		25,926,217				23,886,860				9	%
Interest bearing liabilities		16,510,044				17,377,259				(5)	%
Shareholders' equity - common		2,694,968				3,105,611				(13)	%
Tangible common equity (1)		2,682,046				2,500,063				7	%

(1)	Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders' equity less average goodwill and other intangible assets, net (excluding MSRs).

Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
	Quarter Ended
	September 30, 2021											June 30, 2021											September 30, 2020
(Dollars in thousands)	Average Balance				Interest Income or Expense				Average Yields or Rates			Average Balance				Interest Income or Expense				Average Yields or Rates			Average Balance				Interest Income or Expense				Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	465,805			$	3,672			3.15	%		$	468,960			$	3,725			3.18	%		$	669,646			$	5,248			3.13	%
Loans and leases (1)	21,864,387				220,731				4.02	%		22,040,794				219,745				3.99	%		22,560,076				224,209				3.96	%
Taxable securities	3,436,895				16,315				1.90	%		3,210,771				15,024				1.87	%		2,797,547				10,878				1.56	%
Non-taxable securities (2)	245,904				1,848				3.01	%		247,282				1,864				3.02	%		237,165				1,845				3.11	%
Temporary investments and interest-bearing cash	3,224,846				1,237				0.15	%		2,835,474				774				0.11	%		1,827,818				474				0.10	%
Total interest-earning assets	29,237,837				$	243,803			3.32	%		28,803,281				$	241,132			3.35	%		28,092,252				$	242,654			3.45	%
Other assets	1,376,537											1,352,736											1,441,619
Total assets	$	30,614,374										$	30,156,017										$	29,533,871
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,564,040			$	468			0.05	%		$	3,385,336			$	459			0.05	%		$	2,878,529			$	573			0.08	%
Money market deposits	7,800,144				1,492				0.08	%		7,614,474				1,533				0.08	%		7,179,705				2,284				0.13	%
Savings deposits	2,284,077				206				0.04	%		2,171,865				154				0.03	%		1,790,055				179				0.04	%
Time deposits	2,031,494				2,934				0.57	%		2,303,068				4,870				0.85	%		3,603,527				16,085				1.78	%
Total interest-bearing deposits	15,679,755				5,100				0.13	%		15,474,743				7,016				0.18	%		15,451,816				19,121				0.49	%
Repurchase agreements and federal funds purchased	496,822				88				0.07	%		440,881				68				0.06	%		378,844				84				0.09	%
Borrowings	31,500				149				1.88	%		214,670				866				1.62	%		1,054,153				3,271				1.23	%
Junior subordinated debentures	375,726				3,014				3.18	%		369,812				3,042				3.30	%		320,962				3,249				4.03	%
Total interest-bearing liabilities	16,583,803				$	8,351			0.20	%		16,500,106				$	10,992			0.27	%		17,205,775				$	25,725			0.59	%
Non-interest-bearing deposits	10,960,686											10,582,197											9,335,350
Other liabilities	360,244											373,704											443,043
Total liabilities	27,904,733											27,456,007											26,984,168
Common equity	2,709,641											2,700,010											2,549,703
Total liabilities and shareholders' equity	$	30,614,374										$	30,156,017										$	29,533,871
NET INTEREST INCOME					$	235,452										$	230,140										$	216,929
NET INTEREST SPREAD									3.12	%										3.08	%										2.85	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									3.21	%										3.20	%										3.08	%

(1)	Non-accrual loans and leases are included in the average balance.
(2)	Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $377,000 for the three months ended September 30, 2021, as compared to $377,000 for June 30, 2021 and $355,000 for September 30, 2020.

Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
(dollars in thousands)	Nine Months Ended
	September 30, 2021											September 30, 2020
	Average Balance				Interest Income or Expense				Average Yields or Rates			Average Balance				Interest Income or Expense				Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	545,237			$	12,242			2.99	%		$	551,583			$	14,955			3.61	%
Loans and leases (1)	21,866,569				656,772				4.01	%		22,063,582				695,669				4.21	%
Taxable securities	3,199,653				45,049				1.88	%		2,778,460				37,744				1.81	%
Non-taxable securities (2)	248,617				5,627				3.02	%		238,059				5,608				3.14	%
Temporary investments and interest-bearing cash	2,850,639				2,635				0.12	%		1,493,352				4,208				0.38	%
Total interest-earning assets	28,710,715				$	722,325			3.36	%		27,125,036				$	758,184			3.73	%
Other assets	1,348,054											2,024,722
Total assets	$	30,058,769										$	29,149,758
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,359,865			$	1,341			0.05	%		$	2,667,160			$	5,264			0.26	%
Money market deposits	7,593,320				4,516				0.08	%		7,187,615				18,080				0.34	%
Savings deposits	2,152,667				523				0.03	%		1,635,064				618				0.05	%
Time deposits	2,336,261				16,414				0.94	%		4,159,926				61,671				1.98	%
Total interest-bearing deposits	15,442,113				22,794				0.20	%		15,649,765				85,633				0.73	%
Repurchase agreements and federal funds purchased	444,919				232				0.07	%		363,957				673				0.25	%
Borrowings	259,890				2,787				1.43	%		1,041,181				11,156				1.43	%
Junior subordinated debentures	363,122				9,108				3.35	%		322,356				12,074				5.00	%
Total interest-bearing liabilities	16,510,044				$	34,921			0.28	%		17,377,259				$	109,536			0.84	%
Non-interest-bearing deposits	10,484,104											8,237,095
Other liabilities	369,653											429,793
Total liabilities	27,363,801											26,044,147
Common equity	2,694,968											3,105,611
Total liabilities and shareholders' equity	$	30,058,769										$	29,149,758
NET INTEREST INCOME					$	687,404										$	648,648
NET INTEREST SPREAD									3.08	%										2.89	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									3.20	%										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 $1.1 million for the nine months ended September 30, 2021, as compared to $1.0 million for the same period in 2020.

Umpqua Holdings Corporation Segments
(Unaudited)
Core Banking		Quarter Ended																				% Change
(in thousands)		Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Net interest income		$	232,348			$	226,915			$	217,574			$	230,430			$	212,215			2	%		9	%
(Recapture) provision for credit losses		(18,919)				(22,996)				—				29				(338)				(18)	%		nm
Non-interest income
	Gain on sale of debt securities, net	—				—				4				—				—				nm			nm
	(Loss) gain on equity securities, net	(343)				4				(706)				(173)				(112)				nm			206	%
	Gain (loss) on swap derivatives, net	1,429				(4,481)				11,750				3,955				1,765				(132)	%		(19)	%
	Non-interest income (excluding above items)	38,281				50,933				32,403				40,921				39,678				(25)	%		(4)	%
	Total non-interest income	39,367				46,456				43,451				44,703				41,331				(15)	%		(5)	%
Non-interest expense
	Exit and disposal costs	3,813				4,728				1,200				725				792				(19)	%		381	%
	Non-interest expense (excluding above items)	146,931				146,877				145,161				171,634				148,519				0	%		(1)	%
	Allocated expenses, net (1)	3,680				970				(790)				(3,565)				(2,976)				279	%		(224)	%
	Total non-interest expense	154,424				152,575				145,571				168,794				146,335				1	%		6	%
Income before income taxes		136,210				143,792				115,454				106,310				107,549				(5)	%		27	%
Provision (benefit) for income taxes		33,945				35,630				28,106				(13,508)				20,988				(5)	%		62	%
Net income		$	102,265			$	108,162			$	87,348			$	119,818			$	86,561			(5)	%		18	%
Effective Tax Rate		25		%		25		%		24		%		(13)		%		20		%
Efficiency Ratio		57		%		56		%		56		%		61		%		58		%
Total assets		$	30,419,108			$	29,720,182			$	29,529,769			$	28,438,813			$	28,652,477			2	%		6	%
Loans held for sale		$	—			$	—			$	—			$	78,146			$	—			0	%		0	%
Total loans and leases		$	21,969,940			$	22,143,739			$	22,160,860			$	21,779,367			$	22,426,473			(1)	%		(2)	%
Total deposits		$	26,510,938			$	25,820,776			$	25,425,339			$	24,200,012			$	24,102,498			3	%		10	%
Key Rates, end of period:
10 year CMT		1.52		%		1.45		%		1.74		%		0.93		%		0.69		%
FHLMC 30 year fixed		3.01		%		2.98		%		3.18		%		2.67		%		2.88		%
nm = not meaningful
(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.
Umpqua Holdings Corporation Segments - Continued
(Unaudited)
Mortgage Banking		Quarter Ended																				% Change
(in thousands)		Sep 30, 2021				Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Seq. Quarter			Year over Year
Net interest income		$	2,726			$	2,848			$	3,857			$	4,477			$	4,359			(4)	%		(37)	%
Provision for credit losses		—				—				—				—				—				nm			nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	30,293				41,367				62,505				83,388				98,703				(27)	%		(69)	%
	Servicing	9,172				9,120				9,087				9,497				8,796				1	%		4	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	(4,681)				(4,366)				(4,545)				(4,431)				(4,878)				7	%		(4)	%
	Changes due to valuation inputs or assumptions	(634)				(1,678)				(2,014)				(9,426)				(12,244)				(62)	%		(95)	%
	Non-interest income (excluding above items)	188				176				316				229				216				7	%		(13)	%
	Total non-interest income	34,338				44,619				65,349				79,257				90,593				(23)	%		(62)	%
Non-interest expense
	Non-interest expense	33,009				37,795				41,231				38,953				40,896				(13)	%		(19)	%
	Allocated expenses, net (1)	(3,680)				(970)				790				3,565				2,976				279	%		(224)	%
	Total non-interest expense	29,329				36,825				42,021				42,518				43,872				(20)	%		(33)	%
Income before income taxes		7,735				10,642				27,185				41,216				51,080				(27)	%		(85)	%
Provision for income taxes		1,934				2,661				6,796				10,304				12,770				(27)	%		(85)	%
Net income		$	5,801			$	7,981			$	20,389			$	30,912			$	38,310			(27)	%		(85)	%
Effective Tax Rate		25		%		25		%		25		%		25		%		25		%
Efficiency Ratio		79		%		78		%		61		%		51		%		46		%
Total assets		$	472,371			$	564,783			$	506,911			$	796,362			$	784,964			(16)	%		(40)	%
Loans held for sale		$	352,466			$	429,052			$	376,481			$	688,079			$	683,960			(18)	%		(48)	%
Total deposits		$	397,459			$	332,777			$	461,494			$	422,189			$	567,285			19	%		(30)	%
LHFS Production Statistics:
Closed loan volume for-sale		987,281				1,253,023				1,635,532				1,769,432				1,922,789				(21)	%		(49)	%
Gain on sale margin		3.07		%		3.30		%		3.82		%		4.71		%		5.13		%
Direct LHFS expense		$	19,958			$	25,459			$	31,151			$	33,210			$	35,678			(22)	%		(44)	%
Direct LHFS expenses as % of volume		2.02		%		2.03		%		1.90		%		1.88		%		1.86		%
MSR Statistics:
Residential mortgage loans serviced for others		12,853,291				12,897,032				13,030,467				13,026,720				12,964,361				0	%		(1)	%
MSR, net		$	105,834			$	102,699			$	100,413			$	92,907			$	93,248			3	%		13	%
MSR as % of serviced portfolio		0.82		%		0.80		%		0.77		%		0.71		%		0.72		%
Key Rates, end of period:
10 year CMT		1.52		%		1.45		%		1.74		%		0.93		%		0.69		%
FHLMC 30 year fixed		3.01		%		2.98		%		3.18		%		2.67		%		2.88		%
nm = not meaningful

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

Umpqua Holdings Corporation Segments
(Unaudited)
(in thousands)		Core Banking											Mortgage Banking
		Nine Months Ended								% Change			Nine Months Ended								% Change
		Sep 30, 2021				Sep 30, 2020				Year over Year			Sep 30, 2021				Sep 30, 2020				Year over Year
Net interest income		$	676,837			$	636,566			6.33	%		$	9,431			$	11,046			(14.62)	%
(Recapture) provision for credit losses		(41,915)				204,832				(120.46)	%		—				—				nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	—				—				nm			134,165				224,831				(40.33)	%
	Servicing	—				—				nm			27,379				26,209				4.46	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	—				—				nm			(13,592)				(15,249)				(10.87)	%
	Changes due to valuation inputs or assumptions	—				—				nm			(4,326)				(43,997)				(90.17)	%
	Gain on sale of debt securities, net	4				190				(97.89)	%		—				—				nm
	(Loss) gain on equity securities, net	(1,045)				942				(210.93)	%		—				—				nm
	Gain (loss) on swap derivatives, net	8,698				(13,364)				(165.09)	%		—				—				nm
	Non-interest income (excluding above items)	121,617				107,963				12.65	%		680				524				29.77	%
	Total non-interest income	129,274				95,731				35.04	%		144,306				192,318				(24.96)	%
Non-interest expense
	Goodwill Impairment	—				1,784,936				(100.00)	%		—				—				nm
	Exit and disposal costs	9,741				1,864				422.59	%		—				—				nm
	Non-interest expense (excluding above items)	438,969				437,863				0.25	%		112,035				110,112				1.75	%
	Allocated expenses, net (1)	3,860				(7,992)				(148.30)	%		(3,860)				7,992				(148.30)	%
	Total non-interest expense	452,570				2,216,671				(79.58)	%		108,175				118,104				(8.41)	%
Income (loss) before income taxes		395,456				(1,689,206)				(123.41)	%		45,562				85,260				(46.56)	%
Provision for income taxes		97,681				48,889				99.80	%		11,391				21,315				(46.56)	%
Net income (loss)		$	297,775			$	(1,738,095)			(117.13)	%		$	34,171			$	63,945			(46.56)	%
Effective Tax Rate		25		%		(3)		%					25		%		25		%
Efficiency Ratio		56		%		302		%					70		%		58		%
LHFS Production Statistics:
Closed loan volume for-sale													3,875,836				4,897,068
Gain on sale margin													3.46		%		4.59		%
Direct LHFS expense													$	76,568			$	93,780
Direct LHFS expenses as % of volume													1.98		%		1.92		%
nm = not meaningful

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

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

 

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SOURCE Umpqua Holdings Corporation

FAQ

What was the net income reported by Umpqua Holdings in Q3 2021?

Umpqua Holdings reported a net income of $108 million for the third quarter of 2021.

How much did Umpqua Holdings grow in non-PPP loans during Q3 2021?

Umpqua Holdings experienced a non-PPP loan growth of $480 million in the third quarter of 2021.

What was the dividend per share declared by Umpqua Holdings in Q3 2021?

Umpqua Holdings declared a quarterly cash dividend of $0.21 per common share in Q3 2021.

What is the stock symbol for Umpqua Holdings Corporation?

The stock symbol for Umpqua Holdings Corporation is UMPQ.

What were Umpqua Holdings' earnings per diluted share for Q3 2021?

Earnings per diluted share for Umpqua Holdings in Q3 2021 were $0.49.