Company Announcements

Umpqua Reports Third Quarter 2021 Results

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)