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    UMPQUA REPORTS THIRD QUARTER 2022 RESULTS

    10/19/22 4:15:00 PM ET
    $UMPQ
    Commercial Banks
    Finance
    Get the next $UMPQ alert in real time by email

    Third Quarter 2022 Results

    • Net income of $84 million, or $0.39 per common share
    • Operating net income of $103 million, or $0.47 per common share1
    • Loan balances increased $1.1 billion or 4.4%
    • Deposit balances increased $685 million or 2.6%
    • Net interest margin increased 47 basis points to 3.88%

    PORTLAND, Ore., Oct. 19, 2022 /PRNewswire/ --

    (PRNewsfoto/Umpqua Holdings Corporation)

    UMPQUA REPORTS THIRD QUARTER 2022 RESULTS

    $0.39



    $84



    13.02 %



    13.2 %

    Net earnings per diluted

    common share



    Net income ($ in millions)



    Return on average tangible

    common equity ("ROATCE")1



    Total risk-based capital ratio

    (estimated)

     

    CEO Commentary

    "Strong loan growth, exceptional credit quality, and net interest margin expansion again characterize Umpqua's quarterly results," said Cort O'Haver, President and CEO. "New loan generation reflects existing, conservative portfolio trends, and our efforts to thoughtfully execute loan and deposit pricing changes in the rising rate environment contributed to a 16% sequential-quarter increase in net interest income. Although the net increase in loans outpaced our deposit expansion, we are pleased with the more balanced growth levels compared to the prior quarter. Our teams remain focused on relationship banking with our customers and within our communities as we await the realization of items necessary to complete our proposed combination with Columbia Banking System."

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

     

    3Q22 HIGHLIGHTS (COMPARED TO 2Q22)





    Net Interest

    Income and

    NIM

    •  Net interest income increased by $39 million or 16% on a quarter-to-quarter basis due to the favorable impact of rising interest rates and the higher mix of loans as a percentage of earning assets.

    •  Net interest margin was 3.88%, up 47 basis points from the prior quarter. Total deposit costs were 14 basis points for the quarterly average and 22 basis points at September 30, 2022, compared to 6 basis points at June 30, 2022.





    Non-Interest

    Income and

    Expense

    •  Non-interest income decreased by $26 million due primarily to the impact of rising interest rates on fair value accounting and hedges and lower residential mortgage gain-on-sale income.

    •  Non-interest expense decreased by $1.6 million due to lower salaries and employee benefits expense and lower merger-related expenses, partially offset by a net increase in other miscellaneous expenses.





    Credit

    Quality

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

    •  Provision expense of $28 million compares to $19 million for the prior quarter. Net portfolio growth and economic forecast changes are the primary drivers of the increase.

    •  Non-performing assets to total assets was 0.16%, up 1 basis point from June 30, 2022.





    Capital

    •  Estimated total risk-based capital ratio of 13.2% and estimated tier 1 risk-based capital ratio of 10.7%.

    •  Declared a quarterly cash dividend of $0.21 per common share on October 3, 2022, payable October 28, 2022, to holders of record as of October 14, 2022.





    Notable

    items

    •  MSR hedge put in place in mid-August as additional actions taken to reduce mortgage segment volatility.

    •  $0.8 million in merger-related expenses and $1.4 million in exit and disposal costs.

     

    3Q22 KEY FINANCIAL DATA













    PERFORMANCE

    METRICS

    3Q22



    2Q22



    3Q21

    Return on average assets

    1.09 %



    1.04 %



    1.40 %

    Return on average tangible

    common equity1

    13.02 %



    12.23 %



    15.88 %

    Operating return on average

    assets1

    1.33 %



    1.06 %



    1.40 %

    Operating return on average

    tangible common equity1

    15.90 %



    12.49 %



    15.88 %

    Net interest margin

    3.88 %



    3.41 %



    3.21 %

    Efficiency ratio - consolidated

    56.07 %



    59.12 %



    59.44 %

    Loan to deposit ratio

    95.12 %



    93.50 %



    81.65 %













    INCOME STATEMENT

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

    3Q22



    2Q22



    3Q21

    Net interest income

    $287,604



    $248,170



    $235,074

    Provision (recapture) for

    credit losses

    $27,572



    $18,692



    ($18,919)

    Non-interest income

    $29,445



    $55,235



    $73,705

    Non-interest expense

    $177,964



    $179,574



    $183,753

    Pre-provision net revenue1

    $139,085



    $123,831



    $125,026

    Operating pre-provision net

    revenue1

    $163,793



    $125,994



    $124,955

    Earnings per common share -

    diluted

    $0.39



    $0.36



    $0.49

    Operating earnings per

    common share - diluted1

    $0.47



    $0.37



    $0.49

    Dividends paid per share

    $0.21



    $0.21



    $0.21













    BALANCE SHEET

    3Q22



    2Q22



    3Q21

    Total assets

          $31.5B



          $30.1B



          $30.9B

    Loans and leases

          $25.5B



          $24.4B



          $22.0B

    Total deposits

          $26.8B



          $26.1B



          $26.9B

    Book value per common share

    $11.14



    $11.60



    $12.57

    Tangible book value per

    share1

    $11.11



    $11.57



    $12.52

    Tangible book value per

    share, ex AOCI1

    $13.18



    $12.99



    $12.43

     

    Balance Sheet

    Total consolidated assets were $31.5 billion as of September 30, 2022, compared to $30.1 billion as of June 30, 2022 and $30.9 billion as of September 30, 2021.  Including secured off-balance sheet lines of credit, total available liquidity was $14.4 billion as of September 30, 2022, representing 46% of total assets and 54% of total deposits.

    Gross loans and leases were $25.5 billion as of September 30, 2022, an increase of $1.1 billion relative to June 30, 2022. Growth remained balanced across portfolios as it was diversified further by business lines and geographies. New loans added to the portfolio during the third quarter have similar underwriting characteristics to existing loan categories, as our Q3 2022 Earnings Presentation details.

    Total deposits were $26.8 billion as of September 30, 2022, an increase of $685 million or 2.6% from $26.1 billion as of June 30, 2022. Interest-bearing demand and money market balances accounted for the largest expansion by dollars, though all categories increased during the quarter.

    Net Interest Income

    Net interest income was $288 million for the third quarter of 2022, up $39 million from the prior quarter. The increase reflects the favorable impact of higher interest rates on our asset sensitive balance sheet and the full quarter effect of the significant deployment of cash into loans that occurred in the second quarter of 2022.

    The Company's net interest margin was 3.88% for the third quarter of 2022, up 47 basis points from 3.41% for the second quarter of 2022. The increase is attributable to the higher mix of loans as a percentage of earning assets as well as an increase in individual category earning asset yields given upward interest rate movements. The cost of interest-bearing deposits increased twelve basis points to 0.23% for the third quarter of 2022 compared to the second quarter of 2022, and it was 0.38% on September 30, 2022 compared to 0.10% on June 30, 2022. Please refer to the Q3 2022 Earnings Presentation available on our website for additional net interest margin change details and interest rate sensitivity information.

    Credit Quality

    The allowance for credit losses was $295 million, or 1.16% of loans and leases, as of September 30, 2022, compared to $274 million, or 1.12% of loans and leases, as of June 30, 2022.  The provision for credit losses of $28 million for the third quarter of 2022 compares to a provision of $19 million for the second quarter of 2022. The current quarter's provision reflects allowance requirements for new loan generation; changes between the May 2022 and August 2022 economic forecasts used in credit models, which contributed to the quarter's net expense; and loan mix changes. Please refer to the Q3 2022 Earnings Presentation available on our website for additional details related to the allowance for credit losses.

    Net charge-offs were 0.11% of average loans and leases (annualized) for the third quarter of 2022, compared to 0.11% for the second quarter of 2022. Net charge-off activity within the FinPac portfolio continued to remain below its historical average. As of September 30, 2022, non-performing assets were 0.16% of total assets, compared to 0.15% as of June 30, 2022 and 0.17% as of September 30, 2021.

    Non-interest Income

    Non-interest income was $29 million for the third quarter of 2022, down $26 million from the prior quarter. The decline was primarily driven by a net fair value loss of $23 million in the third quarter related to cumulative fair value adjustments and MSR hedging activity, which compares to a net fair value gain of $1.0 million in the second quarter. Lower mortgage gain-on-sale revenue also contributed to the quarter's decline.

    As detailed in our segment and non-GAAP disclosures, non-interest income for the Core Banking segment includes a fair value loss of $25 million for the third quarter of 2022, driven by an increase in long-term interest rates and their effect on fair value adjustments related to investment securities, swap derivatives, and loans carried at fair value. This compares to a fair value loss of $10 million in the second quarter of 2022, and the $15 million adverse movement in fair value change between periods is primarily captured in other income. Please refer to the Q3 2022 Earnings presentation available on our website for additional details related to other non-interest income.

    Revenue from the origination and sale of residential mortgages was $11 million for the third quarter of 2022, a decrease of $4.6 million from the prior quarter. This decline reflects a sequential-quarter decrease of $180 million or 31% in for-sale mortgage origination volume given the impact of rising long-term interest rates.  Of the current quarter's mortgage production, 92% related to purchase activity, compared to 83% for the prior quarter and 61% for the same period of the prior year. While the mortgage banking gain-on-sale margin increased three basis points from the prior quarter to 2.65% for the third quarter of 2022, it continued to reflect the negative impact from rising rates on the pipeline.

    In mid-August, we put hedges in place to reduce the volatility of MSR fair value impacts on a net basis. In the third quarter of 2022, we recorded a net write-up of the MSR asset of $11 million, which includes a $16 million fair value gain related to model inputs. We correspondingly recorded a $14 million MSR hedge loss during the quarter. Results for the month of September indicate the MSR hedges are working as planned to reduce net income volatility as the $11 million fair value gain related to model inputs was nearly offset by the MSR hedge loss of $10 million during the month. We continue to execute structural changes within our Mortgage Banking segment to manage expenses and efficiently deploy capital, and as part of the process, we reduced headcount during the third quarter.

    Non-interest Expense

    Non-interest expense was $178 million for the third quarter of 2022, down $1.6 million from the prior quarter level. The decrease is primarily due to lower salaries and employee benefits and lower merger-related expenses, partially offset by a net increase in other miscellaneous expenses. The third quarter of 2022 included $0.8 million in merger-related expenses. Please refer to the Q3 2022 Earnings Presentation available on our website for additional quarterly expense change details.

    Capital

    As of September 30, 2022, the Company's tangible book value per common share2 decreased to $11.11, compared to $11.57 in the prior quarter and $12.52 in the same period of the prior year. Rising interest rates drove a decline in the fair value of available-for-sale investment securities and an increase in junior subordinated debt accounted for at fair value during the quarter. The impact of these items is reflected by a decline in accumulated other comprehensive (loss) income ("AOCI") to $(450) million, compared to $(308) million at the prior quarter-end and $20 million at September 30, 2021. Excluding AOCI, tangible book2 increased to $13.18 at September 30, 2022, compared to $12.99 and $12.43 for the linked-quarter and year-ago periods, respectively.

    AOCI has no effect on our regulatory capital ratios as the company opted to exclude it from our common equity tier 1 capital calculations. The Company's estimated total risk-based capital ratio was 13.2% and its estimated tier 1 risk-based capital ratio was 10.7% as of September 30, 2022. The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of September 30, 2022 are estimates, pending completion and filing of the Company's regulatory reports. 

    Segment Disclosures

    Segment disclosures on pages 18-20 of this press release provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.

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

    Earnings Conference Call Information

    The Company will host its third quarter 2022 earnings conference call on October 20, 2022, at 10:00 a.m. PT (1:00 p.m. ET).  During the call, the Company will provide an update on recent activities and discuss its third quarter 2022 financial results. Participants may register for the call using the below link to receive dial-in details and their own unique PINs or join the audiocast. It is recommended you join 10 minutes prior to the start time.

    Register for the call: https://register.vevent.com/register/BI1c52bb4dbf56448d85316177a95883a3

    Join the audiocast: https://edge.media-server.com/mmc/p/2ovipyh4

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

    About Umpqua Holdings Corporation

    Umpqua Holdings Corporation (NASDAQ:UMPQ), headquartered in Portland, Oregon, is the parent company of Umpqua Bank, an Oregon-based regional bank that operates in Oregon, Washington, California, Idaho, Nevada, Arizona, and Colorado. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company was named #1 in Customer Satisfaction for the Northwest Region in the J.D. Power 2021 U.S. Retail Banking Satisfaction StudySM, and Forbes consistently ranks Umpqua as one of America's Best Banks. The Portland Business Journal has also recognized Umpqua as the Most Admired Financial Services Company in Oregon for seventeen consecutive years. In addition to its retail and commercial banking presence, Umpqua Bank owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses. For more information, visit umpquabank.com.

    Forward-Looking Statements

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

     

    ____________________

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

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

     

    TABLE INDEX



    Page

    Consolidated Statements of Operations

    7

    Consolidated Balance Sheets

    9

    Financial Highlights

    10

    Loan & Lease Portfolio Balances and Mix

    12

    Deposit Balances, Mix, and Select Account Details

    13

    Credit Quality - Non-performing Assets

    14

    Credit Quality - Allowance for Credit Losses

    14

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

    17

    Segments

    19

    GAAP to Non-GAAP Reconciliation

    22

     

    Umpqua Holdings Corporation

    Consolidated Statements of Operations

    (Unaudited)



    Quarter Ended



    % Change

    (In thousands, except per share data)

    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year

    over

    Year

    Interest income:



























    Loans and leases

    $     278,830



    $     234,674



    $     214,404



    $     221,501



    $     224,403



    19 %



    24 %

    Interest and dividends on investments:



























    Taxable

    18,175



    17,256



    18,725



    16,566



    16,102



    5 %



    13 %

    Exempt from federal income tax

    1,322



    1,369



    1,372



    1,456



    1,470



    (3) %



    (10) %

    Dividends

    86



    84



    86



    102



    213



    2 %



    (60) %

    Temporary investments and interest bearing

    deposits

    5,115



    2,919



    1,353



    1,229



    1,237



    75 %



    314 %

    Total interest income

    303,528



    256,302



    235,940



    240,854



    243,425



    18 %



    25 %

    Interest expense:



























    Deposits

    9,090



    4,015



    3,916



    4,357



    5,100



    126 %



    78 %

    Securities sold under agreement to

    repurchase and federal funds purchased

    545



    66



    63



    48



    88



    nm



    nm

    Borrowings

    798



    50



    49



    51



    149



    nm



    436 %

    Junior subordinated debentures

    5,491



    4,001



    3,149



    3,019



    3,014



    37 %



    82 %

    Total interest expense

    15,924



    8,132



    7,177



    7,475



    8,351



    96 %



    91 %

    Net interest income

    287,604



    248,170



    228,763



    233,379



    235,074



    16 %



    22 %

    Provision (recapture) for credit losses

    27,572



    18,692



    4,804



    (736)



    (18,919)



    48 %



    (246) %

    Non-interest income:



























    Service charges on deposits

    12,632



    12,011



    11,583



    11,188



    10,941



    5 %



    15 %

    Card-based fees

    9,115



    10,530



    8,708



    9,355



    9,111



    (13) %



    0 %

    Brokerage revenue

    27



    27



    11



    31



    31



    0 %



    (13) %

    Residential mortgage banking revenue, net

    17,341



    30,544



    60,786



    43,185



    34,150



    (43) %



    (49) %

    Gain on sale of debt securities, net

    —



    —



    2



    4



    —



    nm



    nm

    Loss on equity securities, net

    (2,647)



    (2,075)



    (2,661)



    (466)



    (343)



    28 %



    672 %

    Gain on loan and lease sales, net

    1,525



    1,303



    2,337



    4,816



    4,208



    17 %



    (64) %

    BOLI income

    2,023



    2,110



    2,087



    2,101



    2,038



    (4) %



    (1) %

    Other (loss) income

    (10,571)



    785



    (2,884)



    12,524



    13,569



    nm



    (178) %

    Total non-interest income

    29,445



    55,235



    79,969



    82,738



    73,705



    (47) %



    (60) %

    Non-interest expense:



























    Salaries and employee benefits

    109,164



    110,942



    113,138



    117,477



    117,636



    (2) %



    (7) %

    Occupancy and equipment, net

    35,042



    34,559



    34,829



    34,310



    33,944



    1 %



    3 %

    Intangible amortization

    1,025



    1,026



    1,025



    1,130



    1,130



    0 %



    (9) %

    FDIC assessments

    3,007



    2,954



    4,516



    2,896



    2,136



    2 %



    41 %

    Merger related expenses

    769



    2,672



    2,278



    15,183



    —



    (71) %



    nm

    Other expenses

    28,957



    27,421



    26,644



    28,715



    28,907



    6 %



    0 %

    Total non-interest expense

    177,964



    179,574



    182,430



    199,711



    183,753



    (1) %



    (3) %

    Income before provision for income taxes

    111,513



    105,139



    121,498



    117,142



    143,945



    6 %



    (23) %

    Provision for income taxes

    27,473



    26,548



    30,341



    28,788



    35,879



    3 %



    (23) %

    Net income

    $       84,040



    $       78,591



    $       91,157



    $       88,354



    $     108,066



    7 %



    (22) %





























    Weighted average basic shares outstanding

    217,051



    217,030



    216,782



    216,624



    218,416



    0 %



    (1) %

    Weighted average diluted shares outstanding

    217,386



    217,279



    217,392



    217,356



    218,978



    0 %



    (1) %

    Earnings per common share – basic

    $           0.39



    $           0.36



    $           0.42



    $           0.41



    $           0.49



    8 %



    (20) %

    Earnings per common share – diluted

    $           0.39



    $           0.36



    $           0.42



    $           0.41



    $           0.49



    8 %



    (20) %





























    nm = not meaningful



























     

    Umpqua Holdings Corporation

    Consolidated Statements of Operations

    (Unaudited)





    Nine Months Ended



    % Change

    (In thousands, except per share data)



    Sep 30, 2022



    Sep 30, 2021



    Year over

    Year

    Interest income:













    Loans and leases



    $            727,908



    $            669,014



    9 %

    Interest and dividends on investments:













    Taxable



    54,156



    43,833



    24 %

    Exempt from federal income tax



    4,063



    4,491



    (10) %

    Dividends



    256



    1,216



    (79) %

    Temporary investments and interest bearing deposits



    9,387



    2,635



    256 %

    Total interest income



    795,770



    721,189



    10 %

    Interest expense:













    Deposits



    17,021



    22,794



    (25) %

    Securities sold under agreement to repurchase and federal funds purchased



    674



    232



    191 %

    Borrowings



    897



    2,787



    (68) %

    Junior subordinated debentures



    12,641



    9,108



    39 %

    Total interest expense



    31,233



    34,921



    (11) %

    Net interest income



    764,537



    686,268



    11 %

    Provision (recapture) for credit losses



    51,068



    (41,915)



    (222) %

    Non-interest income:













    Service charges on deposits



    36,226



    30,898



    17 %

    Card-based fees



    28,353



    26,759



    6 %

    Brokerage revenue



    65



    5,081



    (99) %

    Residential mortgage banking revenue, net



    108,671



    143,626



    (24) %

    Gain on sale of debt securities, net



    2



    4



    (50) %

    Loss on equity securities, net



    (7,383)



    (1,045)



    nm

    Gain on loan and lease sales, net



    5,165



    10,899



    (53) %

    BOLI income



    6,220



    6,201



    0 %

    Other (loss) income



    (12,670)



    51,157



    (125) %

    Total non-interest income



    164,649



    273,580



    (40) %

    Non-interest expense:













    Salaries and employee benefits



    333,244



    363,343



    (8) %

    Occupancy and equipment, net



    104,430



    103,236



    1 %

    Intangible amortization



    3,076



    3,390



    (9) %

    FDIC assessments



    10,477



    6,342



    65 %

    Merger related expenses



    5,719



    —



    nm

    Other expenses



    83,022



    84,434



    (2) %

    Total non-interest expense



    539,968



    560,745



    (4) %

    Income before provision for income taxes



    338,150



    441,018



    (23) %

    Provision for income taxes



    84,362



    109,072



    (23) %

    Net income



    $            253,788



    $            331,946



    (24) %















    Weighted average basic shares outstanding



    216,955



    219,791



    (1) %

    Weighted average diluted shares outstanding



    217,353



    220,278



    (1) %

    Earnings per common share – basic



    $                 1.17



    $                 1.51



    (23) %

    Earnings per common share – diluted



    $                 1.17



    $                 1.51



    (23) %















    nm = not meaningful













     

    Umpqua Holdings Corporation

    Consolidated Balance Sheets

    (Unaudited)























    % Change

    (In thousands, except per share

    data)

    Sep 30, 2022



    Jun 30, 2022



    Mar 31, 2022



    Dec 31, 2021



    Sep 30, 2021



    Seq.

    Quarter



    Year

    over

    Year

    Assets:



























    Cash and due from banks

    $     321,447



    $     315,348



    $     307,144



    $     222,015



    $     395,555



    2 %



    (19) %

    Interest bearing cash and temporary

    investments

    1,232,412



    687,233



    2,358,292



    2,539,606



    3,349,034



    79 %



    (63) %

    Investment securities:



























    Equity and other, at fair value

    72,277



    75,347



    78,966



    81,214



    81,575



    (4) %



    (11) %

    Available for sale, at fair value

    3,136,391



    3,416,707



    3,638,080



    3,870,435



    3,723,171



    (8) %



    (16) %

    Held to maturity, at amortized cost

    2,547



    2,637



    2,700



    2,744



    2,795



    (3) %



    (9) %

    Loans held for sale

    148,275



    228,889



    309,946



    353,105



    352,466



    (35) %



    (58) %

    Loans and leases

    25,507,951



    24,432,678



    22,975,761



    22,553,180



    21,969,940



    4 %



    16 %

    Allowance for credit losses on loans

    and leases

    (283,065)



    (261,111)



    (248,564)



    (248,412)



    (257,560)



    8 %



    10 %

    Net loans and leases

    25,224,886



    24,171,567



    22,727,197



    22,304,768



    21,712,380



    4 %



    16 %

    Restricted equity securities

    40,993



    10,867



    10,889



    10,916



    10,946



    277 %



    275 %

    Premises and equipment, net

    165,305



    165,196



    167,369



    171,125



    172,624



    0 %



    (4) %

    Operating lease right-of-use assets

    81,729



    87,249



    87,333



    82,366



    88,379



    (6) %



    (8) %

    Other intangible assets, net

    5,764



    6,789



    7,815



    8,840



    9,970



    (15) %



    (42) %

    Residential mortgage servicing

    rights, at fair value

    196,177



    179,558



    165,807



    123,615



    105,834



    9 %



    85 %

    Bank owned life insurance

    329,699



    328,764



    328,040



    327,745



    325,646



    0 %



    1 %

    Deferred tax asset, net

    128,120



    70,134



    39,051



    —



    8,402



    83 %



    nm

    Other assets

    385,938



    389,409



    408,497



    542,442



    552,702



    (1) %



    (30) %

    Total assets

    $  31,471,960



    $  30,135,694



    $  30,637,126



    $  30,640,936



    $  30,891,479



    4 %



    2 %

    Liabilities:



























    Deposits

    $  26,817,107



    $  26,132,423



    $  26,699,587



    $  26,594,685



    $  26,908,397



    3 %



    0 %

    Securities sold under agreements to

    repurchase

    383,569



    527,961



    499,539



    492,247



    467,760



    (27) %



    (18) %

    Borrowings

    756,214



    6,252



    6,290



    6,329



    6,367



    nm



    nm

    Junior subordinated debentures, at

    fair value

    325,744



    321,268



    305,719



    293,081



    299,508



    1 %



    9 %

    Junior subordinated debentures, at

    amortized cost

    87,870



    87,927



    87,984



    88,041



    88,098



    0 %



    0 %

    Operating lease liabilities

    95,512



    101,352



    101,732



    95,427



    100,557



    (6) %



    (5) %

    Deferred tax liability, net

    —



    —



    —



    4,353



    —



    nm



    nm

    Other liabilities

    588,430



    440,235



    328,677



    317,503



    298,413



    34 %



    97 %

    Total liabilities

    29,054,446



    27,617,418



    28,029,528



    27,891,666



    28,169,100



    5 %



    3 %

    Shareholders' equity:



























    Common stock

    3,448,007



    3,445,531



    3,443,266



    3,444,849



    3,442,085



    0 %



    0 %

    Accumulated deficit

    (580,933)



    (619,108)



    (651,912)



    (697,338)



    (739,915)



    (6) %



    (21) %

    Accumulated other comprehensive

    (loss) income

    (449,560)



    (308,147)



    (183,756)



    1,759



    20,209



    46 %



    nm

    Total shareholders' equity

    2,417,514



    2,518,276



    2,607,598



    2,749,270



    2,722,379



    (4) %



    (11) %

    Total liabilities and shareholders' equity

    $  31,471,960



    $  30,135,694



    $  30,637,126



    $  30,640,936



    $  30,891,479



    4 %



    2 %





























    Common shares outstanding at period

    end

    217,053



    217,049



    216,967



    216,626



    216,622



    0 %



    0 %

    Book value per common share

    $         11.14



    $         11.60



    $         12.02



    $         12.69



    $         12.57



    (4) %



    (11) %

    Tangible book value per common

    share (1)

    $         11.11



    $         11.57



    $         11.98



    $         12.65



    $         12.52



    (4) %



    (11) %

    Tangible equity - common (1)

    $  2,411,750



    $  2,511,487



    $  2,599,783



    $  2,740,430



    $  2,712,409



    (4) %



    (11) %

    Tangible common equity to tangible

    assets (1)

    7.66 %



    8.34 %



    8.49 %



    8.95 %



    8.78 %



    (0.68)



    (1.12)

    nm = not meaningful





























    (1) See GAAP to Non-GAAP Reconciliation.

     

    Umpqua Holdings Corporation

    Financial Highlights

    (Unaudited)





    Quarter Ended



    % Change





    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year over

    Year

    Per Common Share Data:





























    Dividends



    $    0.21



    $    0.21



    $    0.21



    $    0.21



    $    0.21



    0 %



    0 %

    Book value



    $  11.14



    $  11.60



    $  12.02



    $  12.69



    $  12.57



    (4) %



    (11) %

    Tangible book value (1)



    $  11.11



    $  11.57



    $  11.98



    $  12.65



    $  12.52



    (4) %



    (11) %

    Tangible book value, ex accumulated other

    comprehensive income (1)



    $  13.18



    $  12.99



    $  12.83



    $  12.64



    $  12.43



    1 %



    6 %































    Performance Ratios:





























    Efficiency ratio



    56.07 %



    59.12 %



    59.02 %



    63.10 %



    59.44 %



    (3.05)



    (3.37)

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



    1.80 %



    1.64 %



    1.67 %



    1.50 %



    1.62 %



    0.16



    0.18

    Return on average assets (ROAA)



    1.09 %



    1.04 %



    1.21 %



    1.13 %



    1.40 %



    0.05



    (0.31)

    Return on average common equity



    12.99 %



    12.20 %



    13.62 %



    12.90 %



    15.82 %



    0.79



    (2.83)

    Return on average tangible common equity (1)



    13.02 %



    12.23 %



    13.66 %



    12.94 %



    15.88 %



    0.79



    (2.86)































    Performance Ratios - Operating: (1)





























    Operating efficiency ratio (1)



    51.72 %



    58.27 %



    62.02 %



    59.61 %



    58.94 %



    (6.55)



    (7.22)

    Operating PPNR return on average assets (1)



    2.12 %



    1.66 %



    1.43 %



    1.58 %



    1.62 %



    0.46



    0.50

    Operating return on average assets (1)



    1.33 %



    1.06 %



    1.03 %



    1.23 %



    1.40 %



    0.27



    (0.07)

    Operating return on average common equity (1)



    15.86 %



    12.46 %



    11.58 %



    13.98 %



    15.82 %



    3.40



    0.04

    Operating return on average tangible common equity (1)



    15.90 %



    12.49 %



    11.62 %



    14.03 %



    15.88 %



    3.41



    0.02































    Average Balance Sheet Yields, Rates, & Ratios:





























    Yield on loans and leases



    4.41 %



    3.94 %



    3.79 %



    3.94 %



    4.02 %



    0.47



    0.39

    Yield on earning assets (2)



    4.10 %



    3.53 %



    3.24 %



    3.25 %



    3.32 %



    0.57



    0.78

    Cost of interest bearing deposits



    0.23 %



    0.11 %



    0.10 %



    0.11 %



    0.13 %



    0.12



    0.10

    Cost of interest bearing liabilities



    0.39 %



    0.20 %



    0.18 %



    0.18 %



    0.20 %



    0.19



    0.19

    Cost of total deposits



    0.14 %



    0.06 %



    0.06 %



    0.06 %



    0.08 %



    0.08



    0.06

    Cost of total funding (3)



    0.23 %



    0.12 %



    0.11 %



    0.11 %



    0.12 %



    0.11



    0.11

    Net interest margin (2)



    3.88 %



    3.41 %



    3.14 %



    3.15 %



    3.21 %



    0.47



    0.67

    Average interest bearing cash / Average interest

    earning assets



    3.04 %



    5.71 %



    8.92 %



    10.78 %



    11.03 %



    (2.67)



    (7.99)

    Average loans and leases / Average interest earning

    assets



    84.54 %



    80.91 %



    76.85 %



    74.70 %



    74.78 %



    3.63



    9.76

    Average loans and leases / Average total deposits



    93.55 %



    89.23 %



    84.77 %



    82.12 %



    82.07 %



    4.32



    11.48

    Average non-interest bearing deposits / Average total

    deposits



    42.29 %



    42.00 %



    41.35 %



    41.69 %



    41.14 %



    0.29



    1.15

    Average total deposits / Average total funding (3)



    96.34 %



    96.66 %



    96.82 %



    96.84 %



    96.72 %



    (0.32)



    (0.38)































    Select Credit & Capital Ratios:





























    Non-performing loans and leases to total loans and

    leases



    0.20 %



    0.18 %



    0.18 %



    0.23 %



    0.24 %



    0.02



    (0.04)

    Non-performing assets to total assets



    0.16 %



    0.15 %



    0.14 %



    0.17 %



    0.17 %



    0.01



    (0.01)

    Allowance for credit losses to loans and leases



    1.16 %



    1.12 %



    1.14 %



    1.16 %



    1.23 %



    0.04



    (0.07)

    Total risk-based capital ratio (4)



    13.2 %



    13.5 %



    14.0 %



    14.3 %



    14.9 %



    (0.30)



    (1.70)

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



    10.7 %



    11.0 %



    11.4 %



    11.6 %



    12.0 %



    (0.30)



    (1.30)





    (1) See GAAP to Non-GAAP Reconciliation.

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

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

    (4) Estimated holding company ratios.

     

    Umpqua Holding Corporation

    Financial Highlights

    (Unaudited)





    Nine Months Ended



    % Change





    Sep 30, 2022



    Sep 30, 2021



    Year over Year

    Per Common Share Data:













    Dividends



    $             0.63



    $             0.63



    — %















    Performance Ratios:













    Efficiency ratio



    58.05 %



    58.35 %



    (0.30)

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



    1.70 %



    1.78 %



    (0.08)

    Return on average assets (ROAA)



    1.11 %



    1.48 %



    (0.37)

    Return on average common equity



    12.94 %



    16.47 %



    (3.53)

    Return on average tangible common equity (1)



    12.98 %



    16.55 %



    (3.57)















    Performance Ratios - Operating: (1)













    Operating efficiency ratio (1)



    57.03 %



    57.88 %



    (0.85)

    Operating PPNR return on average assets (1)



    1.74 %



    1.78 %



    (0.04)

    Operating return on average assets (1)



    1.14 %



    1.48 %



    (0.34)

    Operating return on average common equity (1)



    13.28 %



    16.49 %



    (3.21)

    Operating return on average tangible common equity (1)



    13.32 %



    16.57 %



    (3.25)















    Average Balance Sheet Yields, Rates, & Ratios:













    Yield on loans and leases



    4.06 %



    4.01 %



    0.05

    Yield on earning assets (2)



    3.62 %



    3.36 %



    0.26

    Cost of interest bearing deposits



    0.15 %



    0.20 %



    (0.05)

    Cost of interest bearing liabilities



    0.26 %



    0.28 %



    (0.02)

    Cost of total deposits



    0.09 %



    0.12 %



    (0.03)

    Cost of total funding (3)



    0.15 %



    0.17 %



    (0.02)

    Net interest margin (2)



    3.48 %



    3.20 %



    0.28

    Average interest bearing cash / Average interest earning assets



    5.87 %



    9.93 %



    (4.06)

    Average loans and leases / Average interest earning assets



    80.80 %



    76.16 %



    4.64

    Average loans and leases / Average total deposits



    89.21 %



    84.34 %



    4.87

    Average non-interest bearing deposits / Average total deposits



    41.89 %



    40.44 %



    1.45

    Average total deposits / Average total funding (3)



    96.61 %



    96.04 %



    0.57



    (1) See GAAP to Non-GAAP Reconciliation.

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

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

     

    Umpqua Holdings Corporation

    Loan & Lease Portfolio Balances and Mix

    (Unaudited)



    Sep 30, 2022



    Jun 30, 2022



    Mar 31, 2022



    Dec 31, 2021



    Sep 30, 2021



    % Change

     (Dollars in thousands)

    Amount



    Amount



    Amount



    Amount



    Amount



    Seq.

    Quarter



    Year

    over

    Year

    Loans and leases:



























    Commercial real estate:



























    Non-owner occupied term, net

    $  3,846,426



    $  3,798,242



    $  3,884,784



    $  3,786,887



    $  3,561,764



    1 %



    8 %

    Owner occupied term, net

    2,549,761



    2,497,553



    2,327,899



    2,332,422



    2,330,338



    2 %



    9 %

    Multifamily, net

    5,090,661



    4,768,273



    4,323,633



    4,051,202



    3,813,024



    7 %



    34 %

    Construction & development, net

    1,036,931



    1,017,297



    940,286



    890,338



    882,778



    2 %



    17 %

    Residential development, net

    205,935



    194,909



    195,308



    206,990



    177,148



    6 %



    16 %

    Commercial:



























    Term, net (1)

    3,003,424



    2,904,861



    2,772,206



    3,008,473



    3,159,466



    3 %



    (5) %

    Lines of credit & other, net

    914,507



    920,604



    871,483



    910,733



    930,350



    (1) %



    (2) %

    Leases & equipment finance, net

    1,669,817



    1,576,144



    1,484,252



    1,467,676



    1,457,248



    6 %



    15 %

    Residential:



























    Mortgage, net

    5,470,624



    5,168,457



    4,748,266



    4,517,266



    4,330,860



    6 %



    26 %

    Home equity loans & lines, net

    1,565,094



    1,415,722



    1,250,702



    1,197,170



    1,133,823



    11 %



    38 %

       Consumer & other, net

    154,771



    170,616



    176,942



    184,023



    193,141



    (9) %



    (20) %

    Total loans and leases, net of

    deferred fees and costs

    $  25,507,951



    $  24,432,678



    $  22,975,761



    $  22,553,180



    $  21,969,940



    4 %



    16 %





























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

    Net PPP loan balance

    $       37,949



    $     101,554



    $     172,790



    $     380,440



    $     726,737



    (63) %



    (95) %





























    Loan and leases mix:



























    Commercial real estate:



























       Non-owner occupied term, net

    15 %



    15 %



    17 %



    17 %



    16 %









       Owner occupied term, net

    10 %



    10 %



    10 %



    10 %



    11 %









       Multifamily, net

    20 %



    20 %



    19 %



    18 %



    17 %









    Construction & development, net

    4 %



    4 %



    4 %



    4 %



    4 %









    Residential development, net

    1 %



    1 %



    1 %



    1 %



    1 %









    Commercial:



























    Term, net

    12 %



    12 %



    12 %



    13 %



    14 %









    Lines of credit & other, net

    4 %



    4 %



    4 %



    4 %



    4 %









    Leases & equipment finance, net

    6 %



    6 %



    6 %



    7 %



    7 %









    Residential:



























    Mortgage, net

    21 %



    21 %



    21 %



    20 %



    20 %









    Home equity loans & lines, net

    6 %



    6 %



    5 %



    5 %



    5 %









       Consumer & other, net

    1 %



    1 %



    1 %



    1 %



    1 %









    Total

    100 %



    100 %



    100 %



    100 %



    100 %









     

    Umpqua Holdings Corporation

    Deposit Balances, Mix, and Select Account Details

    (Unaudited)



    Sep 30, 2022



    Jun 30, 2022



    Mar 31, 2022



    Dec 31, 2021



    Sep 30, 2021



    % Change

     (Dollars in thousands)

    Amount



    Amount



    Amount



    Amount



    Amount



    Seq.

    Quarter



    Year

    over

    Year

    Deposits:



























    Demand, non-interest bearing

    $  11,246,358



    $  11,129,209



    $  11,058,251



    $  11,023,724



    $  11,121,127



    1 %



    1 %

    Demand, interest bearing

    3,903,746



    3,723,650



    3,955,329



    3,774,937



    3,758,019



    5 %



    4 %

    Money market

    7,601,506



    7,284,641



    7,572,581



    7,611,718



    7,780,442



    4 %



    (2) %

    Savings

    2,455,917



    2,446,876



    2,429,073



    2,375,723



    2,325,929



    0 %



    6 %

    Time

    1,609,580



    1,548,047



    1,684,353



    1,808,583



    1,922,880



    4 %



    (16) %

    Total

    $  26,817,107



    $  26,132,423



    $  26,699,587



    $  26,594,685



    $  26,908,397



    3 %



    0 %





























    Total core deposits (1)

    $  26,292,548



    $  25,619,500



    $  26,140,993



    $  25,964,358



    $  26,029,814



    3 %



    1 %





























    Deposit mix:



























    Demand, non-interest bearing

    42 %



    43 %



    42 %



    41 %



    41 %









    Demand, interest bearing

    15 %



    14 %



    15 %



    14 %



    14 %









    Money market

    28 %



    28 %



    28 %



    29 %



    29 %









    Savings

    9 %



    9 %



    9 %



    9 %



    9 %









    Time

    6 %



    6 %



    6 %



    7 %



    7 %









    Total

    100 %



    100 %



    100 %



    100 %



    100 %





































    Number of open accounts:



























    Demand, non-interest bearing

    434,347



    434,436



    428,915



    428,181



    425,337









    Demand, interest bearing

    56,698



    57,145



    63,800



    66,010



    70,749









    Money market

    55,712



    56,430



    56,783



    57,222



    57,794









    Savings

    159,008



    159,709



    160,267



    160,449



    161,698









    Time

    32,202



    32,103



    34,127



    35,665



    37,172









    Total

    737,967



    739,823



    743,892



    747,527



    752,750





































    Average balance per account:



























    Demand, non-interest bearing

    $           25.9



    $           25.6



    $           25.8



    $           25.7



    $           26.1









    Demand, interest bearing

    68.9



    65.2



    62.0



    57.2



    53.1









    Money market

    136.4



    129.1



    133.4



    133.0



    134.6









    Savings

    15.4



    15.3



    15.2



    14.8



    14.4









    Time

    50.0



    48.2



    49.4



    50.7



    51.7









    Total

    $           36.3



    $           35.3



    $           35.9



    $           35.6



    $           35.7











    (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,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year

    over

    Year

    Non-performing assets:





























    Loans and leases on non-accrual status:































    Commercial real estate, net



    $      5,403



    $      5,514



    $      5,950



    $      5,767



    $      5,952



    (2) %



    (9) %



    Commercial, net



    18,652



    12,645



    12,415



    13,098



    18,200



    48 %



    2 %



    Residential, net



    —



    —



    —



    —



    —



    nm



    nm



    Consumer & other, net



    —



    —



    —



    —



    —



    nm



    nm



    Total loans and leases on non-accrual

    status



    24,055



    18,159



    18,365



    18,865



    24,152



    32 %



    0 %

    Loans and leases past due 90+ days and

    accruing (1):































    Commercial real estate, net



    1



    23



    1



    1



    1



    (96) %



    0 %



    Commercial, net



    5,143



    3,311



    8



    4,160



    2,454



    55 %



    110 %



    Residential, net (1)



    21,411



    22,340



    23,162



    27,981



    24,919



    (4) %



    (14) %



    Consumer & other, net



    152



    196



    111



    194



    116



    (22) %



    31 %



    Total loans and leases past due 90+

    days and accruing (1)



    26,707



    25,870



    23,282



    32,336



    27,490



    3 %



    (3) %

    Total non-performing loans and leases



    50,762



    44,029



    41,647



    51,201



    51,642



    15 %



    (2) %

    Other real estate owned



    —



    1,868



    1,868



    1,868



    1,868



    (100) %



    (100) %

    Total non-performing assets



    $    50,762



    $    45,897



    $    43,515



    $    53,069



    $    53,510



    11 %



    (5) %

































    Performing restructured loans and leases



    $      7,076



    $      7,631



    $      8,405



    $      6,694



    $      9,849



    (7) %



    (28) %

    Loans and leases past due 31-89 days



    $    53,538



    $    34,659



    $    42,409



    $    31,680



    $    41,326



    54 %



    30 %

    Loans and leases past due 31-89 days to

    total loans and leases



    0.21 %



    0.14 %



    0.18 %



    0.14 %



    0.19 %



    0.07



    0.02

    Non-performing loans and leases to total

    loans and leases (1)



    0.20 %



    0.18 %



    0.18 %



    0.23 %



    0.24 %



    0.02



    (0.04)

    Non-performing assets to total assets (1)



    0.16 %



    0.15 %



    0.14 %



    0.17 %



    0.17 %



    0.01



    (0.01)

    nm = not meaningful































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

     

    Umpqua Holdings Corporation

    Credit Quality – Allowance for Credit Losses

    (Unaudited)







    Quarter Ended



    % Change

    (Dollars in thousands)



    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year over

    Year

    Allowance for credit losses on loans and

    leases (ACLLL)





























    Balance, beginning of period



    $ 261,111



    $ 248,564



    $ 248,412



    $ 257,560



    $ 279,887



    5 %



    (7) %

    Provision (recapture) for credit losses on

    loans and leases



    28,542



    18,787



    5,696



    (1,751)



    (16,132)



    52 %



    (277) %

    Charge-offs































    Commercial real estate, net



    —



    (8)



    —



    (58)



    (916)



    (100) %



    (100) %



    Commercial, net



    (9,459)



    (9,035)



    (7,858)



    (10,197)



    (8,521)



    5 %



    11 %



    Residential, net



    (4)



    —



    (167)



    —



    —



    nm



    nm



    Consumer & other, net



    (929)



    (836)



    (885)



    (675)



    (936)



    11 %



    (1) %



    Total charge-offs



    (10,392)



    (9,879)



    (8,910)



    (10,930)



    (10,373)



    5 %



    0 %

    Recoveries































    Commercial real estate, net



    123



    73



    25



    56



    120



    68 %



    2 %



    Commercial, net



    2,842



    2,934



    2,545



    2,585



    3,346



    (3) %



    (15) %



    Residential, net



    249



    216



    173



    326



    281



    15 %



    (11) %



    Consumer & other, net



    590



    416



    623



    566



    431



    42 %



    37 %



    Total recoveries



    3,804



    3,639



    3,366



    3,533



    4,178



    5 %



    (9) %

    Net (charge-offs) recoveries































    Commercial real estate, net



    123



    65



    25



    (2)



    (796)



    89 %



    (115) %



    Commercial, net



    (6,617)



    (6,101)



    (5,313)



    (7,612)



    (5,175)



    8 %



    28 %



    Residential, net



    245



    216



    6



    326



    281



    13 %



    (13) %



    Consumer & other, net



    (339)



    (420)



    (262)



    (109)



    (505)



    (19) %



    (33) %



    Total net charge-offs



    (6,588)



    (6,240)



    (5,544)



    (7,397)



    (6,195)



    6 %



    6 %

    Balance, end of period



    $ 283,065



    $ 261,111



    $ 248,564



    $ 248,412



    $ 257,560



    8 %



    10 %

    Reserve for unfunded commitments





























    Balance, beginning of period



    $   12,823



    $   12,918



    $   12,767



    $   11,752



    $   14,539



    (1) %



    (12) %

    (Recapture) provision for credit losses on

    unfunded commitments



    (970)



    (95)



    151



    1,015



    (2,787)



    921 %



    (65) %

    Balance, end of period



    11,853



    12,823



    12,918



    12,767



    11,752



    (8) %



    1 %

    Total Allowance for credit losses (ACL)



    $ 294,918



    $ 273,934



    $ 261,482



    $ 261,179



    $ 269,312



    8 %



    10 %































    Net charge-offs to average loans and leases

    (annualized)



    0.11 %



    0.11 %



    0.10 %



    0.13 %



    0.11 %



    —



    —

    Recoveries to gross charge-offs



    36.61 %



    36.84 %



    37.78 %



    32.32 %



    40.28 %



    (0.23)



    (3.67)

    ACLLL to loans and leases



    1.11 %



    1.07 %



    1.08 %



    1.10 %



    1.17 %



    0.04



    (0.06)

    ACL to loans and leases



    1.16 %



    1.12 %



    1.14 %



    1.16 %



    1.23 %



    0.04



    (0.07)

    nm = not meaningful





























     

    Umpqua Holdings Corporation

    Credit Quality – Allowance for Credit Losses

    (Unaudited)





    Nine Months Ended



    % Change

    (Dollars in thousands)



    Sep 30, 2022



    Sep 30, 2021



    Year over Year

    Allowance for credit losses on loans and leases (ACLLL)













    Balance, beginning of period



    $        248,412



    $        328,401



    (24) %

    Provision (recapture) for credit losses on loans and leases 



    53,025



    (33,381)



    (259) %

    Charge-offs















    Commercial real estate, net



    (8)



    (1,086)



    (99) %



    Commercial, net



    (26,352)



    (44,228)



    (40) %



    Residential, net



    (171)



    (70)



    144 %



    Consumer & other, net



    (2,650)



    (2,983)



    (11) %



    Total charge-offs



    (29,181)



    (48,367)



    (40) %

    Recoveries















    Commercial real estate, net



    221



    589



    (62) %



    Commercial, net



    8,321



    8,118



    3 %



    Residential, net



    638



    598



    7 %



    Consumer & other, net



    1,629



    1,602



    2 %



    Total recoveries



    10,809



    10,907



    (1) %

    Net (charge-offs) recoveries















    Commercial real estate, net



    213



    (497)



    (143) %



    Commercial, net



    (18,031)



    (36,110)



    (50) %



    Residential, net



    467



    528



    (12) %



    Consumer & other, net



    (1,021)



    (1,381)



    (26) %



    Total net charge-offs



    (18,372)



    (37,460)



    (51) %

    Balance, end of period



    $        283,065



    $        257,560



    10 %

    Reserve for unfunded commitments













    Balance, beginning of period



    $          12,767



    $          20,286



    (37) %

    (Recapture) provision for credit losses on unfunded commitments



    (914)



    (8,534)



    (89) %

    Balance, end of period



    11,853



    11,752



    1 %

    Total Allowance for credit losses (ACL)



    $        294,918



    $        269,312



    10 %















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



    0.10 %



    0.23 %



    (0.13)

    Recoveries to gross charge-offs



    37.04 %



    22.55 %



    14.49

    nm = not meaningful



























     

    Umpqua Holdings Corporation

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

    (Unaudited)



    Quarter Ended



    September 30, 2022



    June 30, 2022



    September 30, 2021

     (Dollars in thousands)

    Average

    Balance



    Interest

    Income

    or

    Expense



    Average

    Yields

    or Rates



    Average

    Balance



    Interest

    Income

    or

    Expense



    Average

    Yields

    or Rates



    Average

    Balance



    Interest

    Income

    or

    Expense



    Average

    Yields

    or Rates

    INTEREST-EARNING

    ASSETS:



































    Loans held for sale

    $     173,397



    $    2,205



    5.09 %



    $     264,320



    $    2,742



    4.15 %



    $     465,805



    $    3,672



    3.15 %

    Loans and leases (1)

    24,886,203



    276,625



    4.41 %



    23,550,796



    231,932



    3.94 %



    21,864,387



    220,731



    4.02 %

    Taxable securities

    3,271,185



    18,261



    2.23 %



    3,410,091



    17,340



    2.03 %



    3,436,895



    16,315



    1.90 %

    Non-taxable securities (2)

    212,847



    1,651



    3.10 %



    220,327



    1,721



    3.13 %



    245,904



    1,848



    3.01 %

    Temporary investments

    and interest-bearing cash

    893,471



    5,115



    2.27 %



    1,663,454



    2,919



    0.70 %



    3,224,846



    1,237



    0.15 %

    Total interest-earning

    assets

    29,437,103



    $  303,857



    4.10 %



    29,108,988



    $  256,654



    3.53 %



    29,237,837



    $  243,803



    3.32 %

    Other assets

    1,231,074











    1,247,915











    1,376,537









    Total assets

    $  30,668,177











    $  30,356,903











    $  30,614,374









    INTEREST-BEARING

    LIABILITIES:



































    Interest-bearing demand

    deposits

    $  3,829,688



    $    1,705



    0.18 %



    $  3,896,553



    $       610



    0.06 %



    $  3,564,040



    $       468



    0.05 %

    Money market deposits

    7,550,791



    5,817



    0.31 %



    7,366,987



    1,717



    0.09 %



    7,800,144



    1,492



    0.08 %

    Savings deposits

    2,468,187



    250



    0.04 %



    2,426,124



    199



    0.03 %



    2,284,077



    206



    0.04 %

    Time deposits

    1,501,724



    1,318



    0.35 %



    1,618,394



    1,489



    0.37 %



    2,031,494



    2,934



    0.57 %

    Total interest-bearing

    deposits

    15,350,390



    9,090



    0.23 %



    15,308,058



    4,015



    0.11 %



    15,679,755



    5,100



    0.13 %

    Repurchase agreements

    and federal funds

    purchased

    509,559



    545



    0.42 %



    512,641



    66



    0.05 %



    496,822



    88



    0.07 %

    Borrowings

    90,475



    798



    3.50 %



    6,273



    50



    3.21 %



    31,500



    149



    1.88 %

    Junior subordinated

    debentures

    409,151



    5,491



    5.33 %



    393,964



    4,001



    4.07 %



    375,726



    3,014



    3.18 %

    Total interest-bearing

    liabilities

    16,359,575



    $  15,924



    0.39 %



    16,220,936



    $    8,132



    0.20 %



    16,583,803



    $    8,351



    0.20 %

    Non-interest-bearing

    deposits

    11,250,764











    11,086,376











    10,960,686









    Other liabilities

    490,572











    464,755











    360,244









    Total liabilities

    28,100,911











    27,772,067











    27,904,733









    Common equity

    2,567,266











    2,584,836











    2,709,641









    Total liabilities and

    shareholders' equity

    $  30,668,177











    $  30,356,903











    $  30,614,374









    NET INTEREST INCOME





    $  287,933











    $  248,522











    $  235,452





    NET INTEREST SPREAD









    3.71 %











    3.33 %











    3.12 %

    NET INTEREST INCOME

    TO EARNING ASSETS OR

    NET INTEREST MARGIN

    (1), (2)









    3.88 %











    3.41 %











    3.21 %



    (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 $329,000 for the three months ended September 30, 2022, as compared to $352,000 for June 30, 2022 and $377,000 for September 30, 2021. 

     

    Umpqua Holdings Corporation

    Average Rates and Balances

    (Unaudited)

    (dollars in thousands)

    Nine Months Ended



    September 30, 2022



    September 30, 2021



    Average

    Balance



    Interest

    Income or

    Expense



    Average

    Yields or

    Rates



    Average

    Balance



    Interest

    Income or

    Expense



    Average

    Yields or

    Rates

    INTEREST-EARNING ASSETS:























    Loans held for sale

    $        240,928



    $        7,209



    3.99 %



    $        545,237



    $      12,242



    2.99 %

    Loans and leases (1)

    23,676,201



    720,699



    4.06 %



    21,866,569



    656,772



    4.01 %

    Taxable securities

    3,445,386



    54,412



    2.11 %



    3,199,653



    45,049



    1.88 %

    Non-taxable securities (2)

    222,375



    5,098



    3.06 %



    248,617



    5,627



    3.02 %

    Temporary investments and interest-bearing cash

    1,718,832



    9,387



    0.73 %



    2,850,639



    2,635



    0.12 %

    Total interest-earning assets

    29,303,722



    $    796,805



    3.62 %



    28,710,715



    $    722,325



    3.36 %

    Other assets

    1,237,305











    1,348,054









    Total assets

    $   30,541,027











    $   30,058,769









    INTEREST-BEARING LIABILITIES:























    Interest-bearing demand deposits

    $     3,846,202



    $        2,813



    0.10 %



    $     3,359,865



    $        1,341



    0.05 %

    Money market deposits

    7,519,200



    8,942



    0.16 %



    7,593,320



    4,516



    0.08 %

    Savings deposits

    2,433,651



    654



    0.04 %



    2,152,667



    523



    0.03 %

    Time deposits

    1,623,742



    4,612



    0.38 %



    2,336,261



    16,414



    0.94 %

    Total interest-bearing deposits

    15,422,795



    17,021



    0.15 %



    15,442,113



    22,794



    0.20 %

    Repurchase agreements and federal funds

    purchased

    502,998



    674



    0.18 %



    444,919



    232



    0.07 %

    Borrowings

    34,662



    897



    3.46 %



    259,890



    2,787



    1.43 %

    Junior subordinated debentures

    394,803



    12,641



    4.28 %



    363,122



    9,108



    3.35 %

    Total interest-bearing liabilities

    16,355,258



    $      31,233



    0.26 %



    16,510,044



    $      34,921



    0.28 %

    Non-interest-bearing deposits

    11,115,618











    10,484,104









    Other liabilities

    448,426











    369,653









    Total liabilities

    27,919,302











    27,363,801









    Common equity

    2,621,725











    2,694,968









    Total liabilities and shareholders' equity

    $   30,541,027











    $   30,058,769









    NET INTEREST INCOME





    $    765,572











    $    687,404





    NET INTEREST SPREAD









    3.36 %











    3.08 %

    NET INTEREST INCOME TO EARNING ASSETS

    OR NET INTEREST MARGIN (1), (2)









    3.48 %











    3.20 %





























    (1)  Non-accrual loans and leases are included in the average balance.

    (2)  Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $1.0 million for the nine months ended September 30, 2022, as compared to $1.1 million for the same period in 2021.

     

    Umpqua Holdings Corporation

    Segments

    (Unaudited)

    Core Banking

    Quarter Ended



    % Change

    (Dollars in thousands)

    Sep 30, 2022



    Jun 30, 2022



    Mar 31, 2022



    Dec 31, 2021



    Sep 30, 2021



    Seq.

    Quarter



    Year

    over

    Year

    Net interest income

    $     286,532



    $     247,009



    $     227,087



    $     231,250



    $     232,348



    16 %



    23 %

    Provision (recapture) for credit

    losses

    27,572



    18,692



    4,804



    (736)



    (18,919)



    48 %



    (246) %

    Non-interest income





























    Gain on sale of debt securities,

    net

    —



    —



    2



    4



    —



    nm



    nm



    Loss on equity securities, net

    (2,647)



    (2,075)



    (2,661)



    (466)



    (343)



    28 %



    672 %



    Gain (loss) on swap derivatives,

    net

    4,194



    7,337



    7,047



    (303)



    1,429



    (43) %



    193 %



    Change in fair value of certain

    loans held for investment

    (26,397)



    (15,210)



    (21,049)



    (2,672)



    3,432



    74 %



    (869) %



    Non-interest income (excluding

    above items)

    36,769



    34,461



    35,650



    42,812



    34,849



    7 %



    6 %



    Total non-interest income

    11,919



    24,513



    18,989



    39,375



    39,367



    (51) %



    (70) %

    Non-interest expense





























    Merger related expenses

    769



    2,672



    2,278



    15,183



    —



    (71) %



    nm



    Exit and disposal costs

    1,364



    442



    3,033



    3,022



    3,813



    209 %



    (64) %



    Non-interest expense (excluding

    above items)

    154,320



    148,946



    148,423



    150,587



    146,931



    4 %



    5 %



    Allocated expenses, net (1)

    (39)



    3,702



    3,735



    4,314



    3,680



    (101) %



    (101) %



    Total non-interest expense

    156,414



    155,762



    157,469



    173,106



    154,424



    0 %



    1 %

    Income before income taxes

    114,465



    97,068



    83,803



    98,255



    136,210



    18 %



    (16) %

    Provision for income taxes

    28,212



    24,530



    20,917



    24,067



    33,945



    15 %



    (17) %

    Net income

    $       86,253



    $       72,538



    $       62,886



    $       74,188



    $     102,265



    19 %



    (16) %

    Effective Tax Rate

    25 %



    25 %



    25 %



    24 %



    25 %









    Efficiency Ratio

    52 %



    57 %



    64 %



    64 %



    57 %









    Total assets

    $  31,100,700



    $  29,721,590



    $  30,153,079



    $  30,155,058



    $  30,419,108



    5 %



    2 %

    Total loans and leases

    $  25,507,951



    $  24,432,678



    $  22,975,761



    $  22,553,180



    $  21,969,940



    4 %



    16 %

    Total deposits

    $  26,588,217



    $  25,925,294



    $  26,479,078



    $  26,370,568



    $  26,510,938



    3 %



    0 %

    Key Rates, end of period:



























    10 year CMT

    3.83 %



    2.98 %



    2.32 %



    1.52 %



    1.52 %



    0.85



    2.31

    FHLMC 30 year fixed

    6.70 %



    5.70 %



    4.67 %



    3.11 %



    3.01 %



    1.00



    3.69

    nm = not meaningful



























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

     

    Umpqua Holdings Corporation

    Segments - Continued

    (Unaudited)

    Mortgage Banking

    Quarter Ended



    % Change

    (Dollars in thousands)

    Sep 30, 2022



    Jun 30, 2022



    Mar 31, 2022



    Dec 31, 2021



    Sep 30, 2021



    Seq.

    Quarter



    Year

    over

    Year

    Net interest income

    $         1,072



    $         1,161



    $         1,676



    $         2,129



    $         2,726



    (8) %



    (61) %

    Provision for credit losses

    —



    —



    —



    —



    —



    nm



    nm

    Non-interest income





























    Residential mortgage banking

    revenue:





























    Origination and sale

    10,515



    15,101



    16,844



    23,624



    30,293



    (30) %



    (65) %



    Servicing

    9,529



    9,505



    9,140



    9,457



    9,172



    0 %



    4 %



    Change in fair value of MSR

    asset:





























    Changes due to

    collection/realization of expected

    cash flows over time

    (4,978)



    (4,961)



    (5,347)



    (5,311)



    (4,681)



    0 %



    6 %



    Changes due to valuation inputs

    or assumptions

    16,403



    10,899



    40,149



    15,415



    (634)



    51 %



    (2,687) %



    MSR hedge loss

    (14,128)



    —



    —



    —



    —



    nm



    nm



    Non-interest income (excluding

    above items)

    185



    178



    194



    178



    188



    4 %



    (2) %



    Total non-interest income

    17,526



    30,722



    60,980



    43,363



    34,338



    (43) %



    (49) %

    Non-interest expense





























    Non-interest expense

    21,511



    27,514



    28,696



    30,919



    33,009



    (22) %



    (35) %



    Allocated expenses, net (1)

    39



    (3,702)



    (3,735)



    (4,314)



    (3,680)



    (101) %



    (101) %



    Total non-interest expense

    21,550



    23,812



    24,961



    26,605



    29,329



    (9) %



    (27) %

    Income before income taxes

    (2,952)



    8,071



    37,695



    18,887



    7,735



    (137) %



    (138) %

    Provision for income taxes

    (739)



    2,018



    9,424



    4,721



    1,934



    (137) %



    (138) %

    Net income

    $       (2,213)



    $         6,053



    $       28,271



    $       14,166



    $        5,801



    (137) %



    (138) %

    Effective Tax Rate

    25 %



    25 %



    25 %



    25 %



    25 %









    Efficiency Ratio

    116 %



    75 %



    40 %



    58 %



    79 %









    Total assets

    $     371,260



    $     414,104



    $     484,047



    $     485,878



    $     472,371



    (10) %



    (21) %

    Loans held for sale

    $     148,275



    $     228,889



    $     309,946



    $     353,105



    $     352,466



    (35) %



    (58) %

    Total deposits

    $     228,890



    $     207,129



    $     220,509



    $     224,117



    $     397,459



    11 %



    (42) %

    LHFS Production Statistics:



























    Closed loan volume for-sale

    $     396,979



    $     576,532



    $     649,122



    $     871,268



    $     987,281



    (31) %



    (60) %

    Gain on sale margin

    2.65 %



    2.62 %



    2.59 %



    2.71 %



    3.07 %









    Direct LHFS expense

    $      10,465



    $       13,197



    $       14,296



    $       18,150



    $       19,958



    (21) %



    (48) %

    Direct LHFS expenses as % of

    volume

    2.64 %



    2.29 %



    2.20 %



    2.08 %



    2.02 %









    MSR Statistics:



























    Residential mortgage loans serviced

    for others

    $  12,997,911



    $  12,932,747



    $  12,810,574



    $  12,755,671



    $  12,853,291



    1 %



    1 %

    MSR, net

    $     196,177



    $     179,558



    $     165,807



    $     123,615



    $     105,834



    9 %



    85 %

    MSR as % of serviced portfolio

    1.51 %



    1.39 %



    1.29 %



    0.97 %



    0.82 %



    0.12



    0.69

    Key Rates, end of period:



























    10 year CMT

    3.83 %



    2.98 %



    2.32 %



    1.52 %



    1.52 %



    0.85



    2.31

    FHLMC 30 year fixed

    6.70 %



    5.70 %



    4.67 %



    3.11 %



    3.01 %



    1.00



    3.69

    nm = not meaningful





























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

     

    Umpqua Holdings Corporation

    Segments

    (Unaudited)

    (in thousands)

    Core Banking



    Mortgage Banking





    Nine Months Ended



    % Change



    Nine Months Ended



    % Change





    Sep 30, 2022



    Sep 30, 2021



    Year over

    Year



    Sep 30, 2022



    Sep 30, 2021



    Year over

    Year

    Net interest income

    $      760,628



    $      676,837



    12 %



    $          3,909



    $          9,431



    (59) %

    Provision (recapture) for credit

    losses

    51,068



    (41,915)



    (222) %



    —



    —



    nm

    Non-interest income

























    Residential mortgage banking

    revenue:

























    Origination and sale

    —



    —



    nm



    42,460



    134,165



    (68) %



    Servicing

    —



    —



    nm



    28,174



    27,379



    3 %



    Change in fair value of MSR

    asset:









    nm















    Changes due to

    collection/realization of

    expected cash flows over time

    —



    —



    nm



    (15,286)



    (13,592)



    12 %



    Changes due to valuation inputs

    or assumptions

    —



    —



    nm



    67,451



    (4,326)



    (1659) %



    MSR hedge loss

    —



    —



    nm



    (14,128)



    —



    nm



    Gain on sale of debt securities, net

    2



    4



    (50) %



    —



    —



    nm



    Loss on equity securities, net

    (7,383)



    (1,045)



    607 %



    —



    —



    nm



    Gain on swap derivatives, net

    18,578



    8,698



    114 %



    —



    —



    nm



    Change in fair value of certain

    loans held for investment

    (62,656)



    5,704



    (1198) %



    —



    —



    nm



    Non-interest income (excluding

    above items)

    106,880



    115,913



    (8) %



    557



    680



    (18) %



    Total non-interest income

    55,421



    129,274



    (57) %



    109,228



    144,306



    (24) %

    Non-interest expense

























    Merger related expenses

    5,719



    —



    nm



    —



    —



    nm



    Exit and disposal costs

    4,839



    9,741



    (50) %



    —



    —



    nm



    Non-interest expense (excluding

    above items)

    451,689



    438,969



    3 %



    77,721



    112,035



    (31) %



    Allocated expenses, net (1)

    7,398



    3,860



    92 %



    (7,398)



    (3,860)



    92 %



    Total non-interest expense

    469,645



    452,570



    4 %



    70,323



    108,175



    (35) %

    Income before income taxes

    295,336



    395,456



    (25) %



    42,814



    45,562



    (6) %

    Provision for income taxes

    73,659



    97,681



    (25) %



    10,703



    11,391



    (6) %

    Net income

    $      221,677



    $      297,775



    (26) %



    $        32,111



    $        34,171



    (6) %



























    Effective Tax Rate

    25 %



    25 %



    —



    25 %



    25 %



    —

    Efficiency Ratio

    57 %



    56 %



    1.00



    62 %



    70 %



    (8.00)



























    LHFS Production Statistics:























    Closed loan volume for-sale













    $   1,622,633



    $   3,875,836



    (58) %

    Gain on sale margin













    2.62 %



    3.46 %



    (0.84)

    Direct LHFS expense













    $        37,958



    $        76,568



    (50) %

    Direct LHFS expenses as % of

    volume













    2.34 %



    1.98 %



    0.36

    nm = not meaningful

























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

    Non-GAAP Financial Measures

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

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation

    (Unaudited)







    Quarter Ended



    % Change

    (Dollars in thousands, except per share

    data)





    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year

    over

    Year

    Total shareholders' equity

    a



    $2,417,514



    $2,518,276



    $2,607,598



    $2,749,270



    $2,722,379



    (4) %



    (11) %

    Less: Other intangible assets, net





    5,764



    6,789



    7,815



    8,840



    9,970



    (15) %



    (42) %

    Tangible common shareholders' equity

    b



    $2,411,750



    $2,511,487



    $2,599,783



    $2,740,430



    $2,712,409



    (4) %



    (11) %

    Less: Accumulated other comprehensive

    income (AOCI)





    $ (449,560)



    (308,147)



    (183,756)



    1,759



    20,209



    46 %



    nm

    Tangible common shareholders' equity,

    ex AOCI

    c



    $2,861,310



    $2,819,634



    $2,783,539



    $2,738,671



    $2,692,200



    1 %



    6 %

































    Total assets

    d



    $31,471,960



    $30,135,694



    $30,637,126



    $30,640,936



    $30,891,479



    4 %



    2 %

    Less: Other intangible assets, net





    5,764



    6,789



    7,815



    8,840



    9,970



    (15) %



    (42) %

    Tangible assets

    e



    $31,466,196



    $30,128,905



    $30,629,311



    $30,632,096



    $30,881,509



    4 %



    2 %

    Common shares outstanding at period

    end

    f



    217,053



    217,049



    216,967



    216,626



    216,622



    0 %



    — %

































    Total shareholders' equity to total assets ratio

    a / d



    7.68 %



    8.36 %



    8.51 %



    8.97 %



    8.81 %



    (0.68)



    (1.13)

    Tangible common equity ratio

    b / e



    7.66 %



    8.34 %



    8.49 %



    8.95 %



    8.78 %



    (0.68)



    (1.12)

    Tangible common equity ratio, ex AOCI

    c / e



    9.09 %



    9.36 %



    9.09 %



    8.94 %



    8.72 %



    (0.27)



    0.37

    Book value per common share

    a / f



    $     11.14



    $     11.60



    $     12.02



    $     12.69



    $     12.57



    (4) %



    (11) %

    Tangible book value per common share

    b / f



    $     11.11



    $     11.57



    $     11.98



    $     12.65



    $     12.52



    (4) %



    (11) %

    Tangible book value per common share, ex

    AOCI

    c / f



    $     13.18



    $     12.99



    $     12.83



    $     12.64



    $     12.43



    1 %



    6 %

    nm = not meaningful































     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

    Consolidated





    Quarter Ended



    % Change

    (Dollars in thousands)





    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year

    over

    Year

    Non-Interest Income Adjustments































    Gain on sale of debt securities, net





    $            —



    $            —



    $              2



    $              4



    $            —



    nm



    nm

    (Loss) gain on equity securities, net





    (2,647)



    (2,075)



    (2,661)



    (466)



    (343)



    28 %



    672 %

    Gain (loss) on swap derivatives





    4,194



    7,337



    7,047



    (303)



    1,429



    (43) %



    193 %

    Change in fair value of certain loans held

    for investment





    (26,397)



    (15,210)



    (21,049)



    (2,672)



    3,432



    74 %



    nm

    Change in fair value of MSR due to

    valuation inputs or assumptions





    16,403



    10,899



    40,149



    15,415



    (634)



    51 %



    nm

    MSR hedge loss





    (14,128)



    —



    —



    —



    —



    nm



    nm

    Total non-interest income adjustments

    a



    $    (22,575)



    $          951



    $     23,488



    $     11,978



    $       3,884



    nm



    nm

































    Non-Interest Expense Adjustments































    Merger related expenses





    $          769



    $       2,672



    $       2,278



    $     15,183



    $            —



    (71) %



    nm

    Exit and disposal costs





    1,364



    442



    3,033



    3,022



    3,813



    209 %



    (64) %

    Total non-interest expense adjustments

    b



    $       2,133



    $       3,114



    $       5,311



    $     18,205



    $       3,813



    (32) %



    (44) %

































    Net interest income (1)

    c



    $   287,933



    $   248,522



    $   229,117



    $   233,754



    $   235,452



    16 %



    22 %

































    Non-interest income (GAAP)

    d



    $     29,445



    $     55,235



    $     79,969



    $     82,738



    $     73,705



    (47) %



    (60) %

    Less: Non-interest income adjustments

    a



    22,575



    (951)



    (23,488)



    (11,978)



    (3,884)



    nm



    nm

    Operating non-interest income (non-

    GAAP)

    e



    $     52,020



    $     54,284



    $     56,481



    $     70,760



    $     69,821



    (4) %



    (25) %

































    Revenue (GAAP) (1)

    f=c+d



    $   317,378



    $   303,757



    $   309,086



    $   316,492



    $   309,157



    4 %



    3 %

    Operating revenue (non-GAAP)  (1)

    g=c+e



    $   339,953



    $   302,806



    $   285,598



    $   304,514



    $   305,273



    12 %



    11 %

































    Non-interest expense (GAAP)

    h



    $   177,964



    $   179,574



    $   182,430



    $   199,711



    $   183,753



    (1) %



    (3) %

    Less: Non-interest expense adjustments

    b



    (2,133)



    (3,114)



    (5,311)



    (18,205)



    (3,813)



    (32) %



    (44) %

    Operating non-interest expense (non-

    GAAP)

    i



    $   175,831



    $   176,460



    $   177,119



    $   181,506



    $   179,940



    — %



    (2) %

































    Net income (GAAP)

    j



    $     84,040



    $     78,591



    $     91,157



    $     88,354



    $   108,066



    7 %



    (22) %

    Provision for income taxes





    27,473



    26,548



    30,341



    28,788



    35,879



    3 %



    (23) %

    Income before provision for income taxes





    111,513



    105,139



    121,498



    117,142



    143,945



    6 %



    (23) %

    Provision (recapture) for credit losses





    27,572



    18,692



    4,804



    (736)



    (18,919)



    48 %



    (246) %

    Pre-provision net revenue (PPNR) (non-

    GAAP)

    k



    139,085



    123,831



    126,302



    116,406



    125,026



    12 %



    11 %

    Less: Non-interest income adjustments

    a



    22,575



    (951)



    (23,488)



    (11,978)



    (3,884)



    nm



    nm

    Add: Non-interest expense adjustments

    b



    2,133



    3,114



    5,311



    18,205



    3,813



    (32) %



    (44) %

    Operating PPNR (non-GAAP)

    l



    $   163,793



    $   125,994



    $   108,125



    $   122,633



    $   124,955



    30 %



    31 %

































    Net income (GAAP)

    j



    $     84,040



    $     78,591



    $     91,157



    $     88,354



    $   108,066



    7 %



    (22) %

    Less: Non-interest income adjustments

    a



    22,575



    (951)



    (23,488)



    (11,978)



    (3,884)



    nm



    nm

    Add: Non-interest expense adjustments

    b



    2,133



    3,114



    5,311



    18,205



    3,813



    (32) %



    (44) %

    Tax effect of adjustments





    (6,116)



    (480)



    4,576



    1,190



    18



    nm



    nm

    Operating net income (non-GAAP)

    m



    $   102,632



    $     80,274



    $     77,556



    $     95,771



    $   108,013



    28 %



    (5) %

    nm = not meaningful































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

     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

    Consolidated





    Quarter Ended



    % Change

    (Dollars in thousands, except per share

    data)





    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year

    over

    Year

    Average assets

    n



    $30,668,177



    $30,356,903



    $30,597,413



    $30,886,378



    $30,614,374



    1 %



    — %

    Less: Average goodwill and other intangible

    assets, net





    6,343



    7,379



    8,407



    9,491



    10,609



    (14) %



    (40) %

    Average tangible assets

    o



    $30,661,834



    $30,349,524



    $30,589,006



    $30,876,887



    $30,603,765



    1 %



    — %

































    Average common shareholders' equity

    p



    $2,567,266



    $2,584,836



    $2,715,059



    $2,717,753



    $2,709,641



    (1) %



    (5) %

    Less: Average goodwill and other intangible

    assets, net





    6,343



    7,379



    8,407



    9,491



    10,609



    (14) %



    (40) %

    Average tangible common equity

    q



    $2,560,923



    $2,577,457



    $2,706,652



    $2,708,262



    $2,699,032



    (1) %



    (5) %

































    Weighted average basic shares outstanding

    r



    217,051



    217,030



    216,782



    216,624



    218,416



    0 %



    (1) %

    Weighted average diluted shares

    outstanding

    s



    217,386



    217,279



    217,392



    217,356



    218,978



    0 %



    (1) %

































    Select Per-Share & Performance Metrics































    Earnings-per-share - basic

    j / r



    $      0.39



    $      0.36



    $      0.42



    $      0.41



    $      0.49



    8 %



    (20) %

    Earnings-per-share - diluted

    j / s



    $      0.39



    $      0.36



    $      0.42



    $      0.41



    $      0.49



    8 %



    (20) %

    Efficiency ratio

    h / f



    56.07 %



    59.12 %



    59.02 %



    63.10 %



    59.44 %



    (3.05)



    (3.37)

    PPNR return on average assets

    k / n



    1.80 %



    1.64 %



    1.67 %



    1.50 %



    1.62 %



    0.16



    0.18

    Return on average assets

    j / n



    1.09 %



    1.04 %



    1.21 %



    1.13 %



    1.40 %



    0.05



    (0.31)

    Return on average tangible assets

    j / o



    1.09 %



    1.04 %



    1.21 %



    1.14 %



    1.40 %



    0.05



    (0.31)

    Return on average common equity

    j / p



    12.99 %



    12.20 %



    13.62 %



    12.90 %



    15.82 %



    0.79



    (2.83)

    Return on average tangible common equity

    j / q



    13.02 %



    12.23 %



    13.66 %



    12.94 %



    15.88 %



    0.79



    (2.86)

































    Operating Per-Share & Performance Metrics































    Operating earnings-per-share - basic

    m / r



    $      0.47



    $      0.37



    $      0.36



    $      0.44



    $      0.49



    27 %



    (4) %

    Operating earnings-per-share - diluted

    m / s



    $      0.47



    $      0.37



    $      0.36



    $      0.44



    $      0.49



    27 %



    (4) %

    Operating efficiency ratio

    i / g



    51.72 %



    58.27 %



    62.02 %



    59.61 %



    58.94 %



    (6.55)



    (7.22)

    Operating PPNR return on average assets

    l / n



    2.12 %



    1.66 %



    1.43 %



    1.58 %



    1.62 %



    0.46



    0.50

    Operating return on average assets

    m / n



    1.33 %



    1.06 %



    1.03 %



    1.23 %



    1.40 %



    0.27



    (0.07)

    Operating return on average tangible assets

    m / o



    1.33 %



    1.06 %



    1.03 %



    1.23 %



    1.40 %



    0.27



    (0.07)

    Operating return on average common equity

    m / p



    15.86 %



    12.46 %



    11.58 %



    13.98 %



    15.82 %



    3.40



    0.04

    Operating return on average tangible common

    equity

    m / q



    15.90 %



    12.49 %



    11.62 %



    14.03 %



    15.88 %



    3.41



    0.02

     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

    Core Banking





    Quarter Ended



    % Change

    (Dollars in thousands)





    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year

    over

    Year

    Non-Interest Income Adjustments































    Gain on sale of debt securities, net





    $       —



    $       —



    $         2



    $           4



    $         —



    nm



    nm

    (Loss) gain on equity securities, net





    (2,647)



    (2,075)



    (2,661)



    (466)



    (343)



    28 %



    672 %

    Gain (loss) on swap derivatives





    4,194



    7,337



    7,047



    (303)



    1,429



    (43) %



    193 %

    Change in fair value of certain loans held for

    investment





    (26,397)



    (15,210)



    (21,049)



    (2,672)



    3,432



    74 %



    (869) %

    Total non-interest income adjustments

    a



    $ (24,850)



    $ (9,948)



    $ (16,661)



    $   (3,437)



    $    4,518



    150 %



    (650) %

































    Non-Interest Expense Adjustments































    Merger related expenses





    $     769



    $  2,672



    $  2,278



    $  15,183



    $         —



    (71) %



    nm

    Exit and disposal costs





    1,364



    442



    3,033



    3,022



    3,813



    209 %



    (64) %

    Total non-interest expense adjustments

    b



    $  2,133



    $  3,114



    $  5,311



    $  18,205



    $    3,813



    (32) %



    (44) %

































    Net interest income (1)

    c



    $  286,861



    $  247,361



    $  227,441



    $ 231,625



    $ 232,726



    16 %



    23 %

































    Non-interest income (GAAP)

    d



    $ 11,919



    $ 24,513



    $ 18,989



    $  39,375



    $  39,367



    (51) %



    (70) %

    Less: Non-interest income adjustments

    a



    24,850



    9,948



    16,661



    3,437



    (4,518)



    150 %



    (650) %

    Operating non-interest income (non-GAAP)

    e



    $ 36,769



    $ 34,461



    $ 35,650



    $  42,812



    $  34,849



    7 %



    6 %

































    Revenue (GAAP) (1)

    f=c+d



    $  298,780



    $  271,874



    $  246,430



    $ 271,000



    $ 272,093



    10 %



    10 %

    Operating revenue (non-GAAP) (1)

    g=c+e



    $  323,630



    $  281,822



    $  263,091



    $ 274,437



    $ 267,575



    15 %



    21 %

































    Non-interest expense (GAAP) (2)

    h



    $  156,414



    $  155,762



    $  157,469



    $ 173,106



    $ 154,424



    — %



    1 %

    Less: Non-interest expense adjustments

    b



    (2,133)



    (3,114)



    (5,311)



    (18,205)



    (3,813)



    (32) %



    (44) %

    Operating non-interest expense (non-GAAP)

    i



    $  154,281



    $  152,648



    $  152,158



    $ 154,901



    $ 150,611



    1 %



    2 %

































    Net income (GAAP)

    j



    $ 86,253



    $ 72,538



    $ 62,886



    $  74,188



    $ 102,265



    19 %



    (16) %

    Provision for income taxes





    28,212



    24,530



    20,917



    24,067



    33,945



    15 %



    (17) %

    Income before provision for income taxes





    114,465



    97,068



    83,803



    98,255



    136,210



    18 %



    (16) %

    Provision (recapture) for credit losses





    27,572



    18,692



    4,804



    (736)



    (18,919)



    48 %



    (246) %

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

    k



    142,037



    115,760



    88,607



    97,519



    117,291



    23 %



    21 %

    Less: Non-interest income adjustments

    a



    24,850



    9,948



    16,661



    3,437



    (4,518)



    150 %



    (650) %

    Add: Non-interest expense adjustments

    b



    2,133



    3,114



    5,311



    18,205



    3,813



    (32) %



    (44) %

    Operating PPNR (non-GAAP)

    l



    $  169,020



    $  128,822



    $  110,579



    $ 119,161



    $ 116,586



    31 %



    45 %

































    Net income (GAAP)

    j



    $ 86,253



    $ 72,538



    $ 62,886



    $  74,188



    $ 102,265



    19 %



    (16) %

    Less: Non-interest income adjustments

    a



    24,850



    9,948



    16,661



    3,437



    (4,518)



    150 %



    (650) %

    Add: Non-interest expense adjustments

    b



    2,133



    3,114



    5,311



    18,205



    3,813



    (32) %



    (44) %

    Tax effect of adjustments





    (6,685)



    (3,205)



    (5,461)



    (2,664)



    177



    109 %



    (3,877) %

    Operating net income (non-GAAP)

    m



    $  106,551



    $ 82,395



    $ 79,397



    $  93,166



    $ 101,737



    29 %



    5 %

































    Efficiency ratio

    h / f



    52.35 %



    57.29 %



    63.90 %



    63.88 %



    56.75 %



    (4.94)



    (4.40)

    Operating efficiency ratio

    i / g



    47.67 %



    54.16 %



    57.83 %



    56.44 %



    56.29 %



    (6.49)



    (8.62)

    Core Banking net income / Consolidated net

    income





    102.63 %



    92.30 %



    68.99 %



    83.97 %



    94.63 %



    10.33



    8.00

    Core Banking operating net income /

    Consolidated operating net income





    103.82 %



    102.64 %



    102.37 %



    97.28 %



    94.19 %



    1.18



    9.63

    nm = not meaningful































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

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

     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

    Mortgage Banking





    Quarter Ended



    % Change

    (Dollars in thousands)





    Sep 30,

    2022



    Jun 30,

    2022



    Mar 31,

    2022



    Dec 31,

    2021



    Sep 30,

    2021



    Seq.

    Quarter



    Year over

    Year

    Non-Interest Income Adjustments































    Change in fair value of MSR due to valuation

    inputs or assumptions





    $ 16,403



    $ 10,899



    $ 40,149



    $ 15,415



    $    (634)



    51 %



    nm

       MSR hedge loss





    (14,128)



    —



    —



    —



    —



    nm



    nm

    Total non-interest income adjustments

    a



    $  2,275



    $ 10,899



    $ 40,149



    $ 15,415



    $    (634)



    (79) %



    (459) %

































    Total non-interest expense adjustments

    b



    $       —



    $       —



    $       —



    $       —



    $       —



    nm



    nm

































    Net interest income

    c



    $  1,072



    $  1,161



    $  1,676



    $  2,129



    $  2,726



    (8) %



    (61) %

































    Non-interest income (GAAP)

    d



    $ 17,526



    $ 30,722



    $ 60,980



    $ 43,363



    $ 34,338



    (43) %



    (49) %

    Less: Non-interest income adjustments

    a



    (2,275)



    (10,899)



    (40,149)



    (15,415)



    634



    (79) %



    (459) %

    Operating non-interest income (non-GAAP)

    e



    $ 15,251



    $ 19,823



    $ 20,831



    $ 27,948



    $ 34,972



    (23) %



    (56) %

































    Revenue (GAAP)

    f=c+d



    $ 18,598



    $ 31,883



    $ 62,656



    $ 45,492



    $ 37,064



    (42) %



    (50) %

    Operating revenue (non-GAAP)

    g=c+e



    16,323



    20,984



    22,507



    30,077



    37,698



    (22) %



    (57) %

































    Non-interest expense (GAAP) (1)

    h



    21,550



    23,812



    24,961



    26,605



    29,329



    (9) %



    (27) %

    Less: Non-interest expense adjustments

    b



    —



    —



    —



    —



    —



    nm



    nm

    Operating non-interest expense (non-GAAP)

    i



    $ 21,550



    $ 23,812



    $ 24,961



    $ 26,605



    $ 29,329



    (9) %



    (27) %

































    Net income (GAAP)

    j



    $ (2,213)



    $  6,053



    $ 28,271



    $ 14,166



    $  5,801



    (137) %



    (138) %

    Provision for income taxes





    (739)



    2,018



    9,424



    4,721



    1,934



    (137) %



    (138) %

    Income before provision for income taxes





    (2,952)



    8,071



    37,695



    18,887



    7,735



    (137) %



    (138) %

    Provision for credit losses





    —



    —



    —



    —



    —



    nm



    nm

    Pre-provision net revenue (PPNR) (non-

    GAAP)

    k



    (2,952)



    8,071



    37,695



    18,887



    7,735



    (137) %



    (138) %

    Less: Non-interest income adjustments

    a



    (2,275)



    (10,899)



    (40,149)



    (15,415)



    634



    (79) %



    (459) %

    Add: Non-interest expense adjustments

    b



    —



    —



    —



    —



    —



    nm



    nm

    Operating PPNR (non-GAAP)

    l



    $ (5,227)



    $ (2,828)



    $ (2,454)



    $  3,472



    $  8,369



    85 %



    (162) %

































    Net income (GAAP)

    j



    $ (2,213)



    $  6,053



    $ 28,271



    $ 14,166



    $  5,801



    (137) %



    (138) %

    Less: Non-interest income adjustments

    a



    (2,275)



    (10,899)



    (40,149)



    (15,415)



    634



    (79) %



    (459) %

    Add: Non-interest expense adjustments

    b



    —



    —



    —



    —



    —



    nm



    nm

    Tax effect of adjustments





    569



    2,725



    10,037



    3,854



    (159)



    (79) %



    (458) %

    Operating net income (non-GAAP)

    m



    $ (3,919)



    $ (2,121)



    $ (1,841)



    $  2,605



    $  6,276



    85 %



    (162) %

































    Efficiency ratio

    h / f



    115.87 %



    74.69 %



    39.84 %



    58.48 %



    79.13 %



    41.18



    36.74

    Operating efficiency ratio

    i / g



    132.02 %



    113.48 %



    110.90 %



    88.46 %



    77.80 %



    18.54



    54.22

    Mortgage Banking net income / Consolidated

    net income





    (2.63) %



    7.70 %



    31.01 %



    16.03 %



    5.37 %



    (10.33)



    (8.00)

    Mortgage Banking operating net income /

    Consolidated operating net income





    (3.82) %



    (2.64) %



    (2.37) %



    2.72 %



    5.81 %



    (1.18)



    (9.63)

    nm = not meaningful































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

     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

    Consolidated





    Year to Date



    % Change

    (Dollars in thousands)





    Sep 30, 2022



    Sep 30, 2021



    Year over Year

    Non-Interest Income Adjustments















    Gain on sale of debt securities, net





    $                        2



    $                        4



    (50) %

    Loss on equity securities, net





    (7,383)



    (1,045)



    nm

    Gain on swap derivatives





    18,578



    8,698



    114 %

    Change in fair value of certain loans held for investment





    (62,656)



    5,704



    nm

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





    67,451



    (4,326)



    nm

       MSR hedge loss





    (14,128)



    —



    nm

    Total non-interest income adjustments

    a



    $                 1,864



    $                 9,035



    (79) %

















    Non-Interest Expense Adjustments















    Merger related expenses





    $                 5,719



    $                      —



    nm

    Exit and disposal costs





    4,839



    9,741



    (50) %

    Total non-interest expense adjustments

    b



    $                10,558



    $                 9,741



    8 %

















    Net interest income (1)

    c



    $              765,572



    $              687,404



    11 %

















    Non-interest income (GAAP)

    d



    $              164,649



    $              273,580



    (40) %

    Less: Non-interest income adjustments

    a



    (1,864)



    (9,035)



    (79) %

    Operating non-interest income (non-GAAP)

    e



    $              162,785



    $              264,545



    (38) %

















    Revenue (GAAP) (1)

    f=c+d



    $              930,221



    $              960,984



    (3) %

    Operating revenue (non-GAAP)  (1)

    g=c+e



    $              928,357



    $              951,949



    (2) %

















    Non-interest expense (GAAP)

    h



    $              539,968



    $              560,745



    (4) %

    Less: Non-interest expense adjustments

    b



    (10,558)



    (9,741)



    8 %

    Operating non-interest expense (non-GAAP)

    i



    $              529,410



    $              551,004



    (4) %

















    Net income (GAAP)

    j



    $              253,788



    $              331,946



    (24) %

    Provision for income taxes





    84,362



    109,072



    (23) %

    Income before provision for income taxes





    338,150



    441,018



    (23) %

    Provision (recapture) for credit losses





    51,068



    (41,915)



    (222) %

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

    k



    389,218



    399,103



    (2) %

    Less: Non-interest income adjustments

    a



    (1,864)



    (9,035)



    (79) %

    Add: Non-interest expense adjustments

    b



    10,558



    9,741



    8 %

    Operating PPNR (non-GAAP)

    l



    $              397,912



    $              399,809



    — %

















    Net income (GAAP)

    j



    $              253,788



    $              331,946



    (24) %

    Less: Non-interest income adjustments

    a



    (1,864)



    (9,035)



    (79) %

    Add: Non-interest expense adjustments

    b



    10,558



    9,741



    8 %

    Tax effect of adjustments





    (2,020)



    (177)



    nm

    Operating net income (non-GAAP)

    m



    $              260,462



    $              332,475



    (22) %

    nm = not meaningful













    Average assets

    n



    $         30,541,027



    $         30,058,769



    2 %

    Less: Average goodwill and other intangible assets, net





    $                 7,369



    $                12,922



    (43) %

    Average tangible assets

    o



    $         30,533,658



    $         30,045,847



    2 %

















    Average common shareholders' equity

    p



    $           2,621,725



    $           2,694,968



    (3) %

    Less: Average goodwill and other intangible assets, net





    $                 7,369



    $                12,922



    (43) %

    Average tangible common equity

    q



    $           2,614,356



    $           2,682,046



    (3) %

















    Weighted average basic shares outstanding

    r



    216,955



    219,791



    (1) %

    Weighted average diluted shares outstanding

    s



    217,353



    220,278



    (1) %

















    Select Per-Share & Performance Metrics















    Earnings-per-share - basic

    j / r



    $                   1.17



    $                   1.51



    (23) %

    Earnings-per-share - diluted

    j / s



    $                   1.17



    $                   1.51



    (23) %

    Efficiency ratio

    h / f



    58.05 %



    58.35 %



    (0.30)

    PPNR return on average assets

    k / n



    1.70 %



    1.78 %



    (0.08)

    Return on average assets

    j / n



    1.11 %



    1.48 %



    (0.37)

    Return on average tangible assets

    j / o



    1.11 %



    1.48 %



    (0.37)

    Return on average common equity

    j / p



    12.94 %



    16.47 %



    (3.53)

    Return on average tangible common equity

    j / q



    12.98 %



    16.55 %



    (3.57)

















    Operating Per-Share & Performance Metrics















    Operating earnings-per-share - basic

    m / r



    $                   1.20



    $                   1.51



    (21) %

    Operating earnings-per-share - diluted

    m / s



    $                   1.20



    $                   1.51



    (21) %

    Operating efficiency ratio

    i / g



    57.03 %



    57.88 %



    (0.85)

    Operating PPNR return on average assets

    l / n



    1.74 %



    1.78 %



    (0.04)

    Operating return on average assets

    m / n



    1.14 %



    1.48 %



    (0.34)

    Operating return on average tangible assets

    m / o



    1.14 %



    1.48 %



    (0.34)

    Operating return on average common equity

    m / p



    13.28 %



    16.49 %



    (3.21)

    Operating return on average tangible common equity

    m / q



    13.32 %



    16.57 %



    (3.25)



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

     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

















    Core Banking





    Year to Date



    % Change

    (Dollars in thousands)





    Sep 30, 2022



    Sep 30, 2021



    Year over Year

    Non-Interest Income Adjustments















    Gain on sale of debt securities, net





    $                        2



    $                        4



    (50) %

    Loss on equity securities, net





    (7,383)



    (1,045)



    607 %

    Gain on swap derivatives





    18,578



    8,698



    114 %

    Change in fair value of certain loans held for investment





    (62,656)



    5,704



    nm

    Total non-interest income adjustments

    a



    $              (51,459)



    $                13,361



    (485) %

















    Non-Interest Expense Adjustments















    Merger related expenses





    $                 5,719



    $                      —



    nm

    Exit and disposal costs





    4,839



    9,741



    (50) %

    Total non-interest expense adjustments

    b



    $                10,558



    $                 9,741



    8 %

















    Net interest income (1)

    c



    $              761,663



    $              677,973



    12 %

















    Non-interest income (GAAP)

    d



    $                55,421



    $              129,274



    (57) %

    Less: Non-interest income adjustments

    a



    51,459



    (13,361)



    (485) %

    Operating non-interest income (non-GAAP)

    e



    $              106,880



    $              115,913



    (8) %

















    Revenue (GAAP) (1)

    f=c+d



    $              817,084



    $              807,247



    1 %

    Operating revenue (non-GAAP) (1)

    g=c+e



    $              868,543



    $              793,886



    9 %

















    Non-interest expense (GAAP) (2)

    h



    $              469,645



    $              452,570



    4 %

    Less: Non-interest expense adjustments

    b



    (10,558)



    (9,741)



    8 %

    Operating non-interest expense (non-GAAP)

    i



    $              459,087



    $              442,829



    4 %

















    Net income (GAAP)

    j



    $              221,677



    $              297,775



    (26) %

    Provision for income taxes





    73,659



    97,681



    (25) %

    Income before provision for income taxes





    295,336



    395,456



    (25) %

    Provision (recapture) for credit losses





    51,068



    (41,915)



    (222) %

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

    k



    346,404



    353,541



    (2) %

    Less: Non-interest income adjustments

    a



    51,459



    (13,361)



    (485) %

    Add: Non-interest expense adjustments

    b



    10,558



    9,741



    8 %

    Operating PPNR (non-GAAP)

    l



    $              408,421



    $              349,921



    17 %

















    Net income (GAAP)

    j



    $              221,677



    $              297,775



    (26) %

    Less: Non-interest income adjustments

    a



    51,459



    (13,361)



    (485) %

    Add: Non-interest expense adjustments

    b



    10,558



    9,741



    8 %

    Tax effect of adjustments





    (15,351)



    905



    nm

    Operating net income (non-GAAP)

    m



    $              268,343



    $              295,060



    (9) %

















    Efficiency ratio

    h / f



    57.48 %



    56.06 %



    1.42

    Operating efficiency ratio

    i / g



    52.86 %



    55.78 %



    (2.92)

    Core Banking net income / Consolidated net income





    87.35 %



    89.71 %



    (2.36)

    Core Banking operating net income / Consolidated operating net income





    103.03 %



    88.75 %



    14.28

    nm = not meaningful













     

    Umpqua Holdings Corporation

    GAAP to Non-GAAP Reconciliation - Continued

    (Unaudited)

    Mortgage Banking





    Year to Date



    % Change

    (Dollars in thousands)





    Sep 30, 2022



    Sep 30, 2021



    Year over Year

    Non-Interest Income Adjustments















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





    $                67,451



    $                (4,326)



    nm

       MSR hedge loss





    (14,128)



    —



    nm

    Total non-interest income adjustments

    a



    $                53,323



    $                (4,326)



    nm

















    Total non-interest expense adjustments

    b



    $                      —



    $                      —



    nm

















    Net interest income

    c



    $                 3,909



    $                 9,431



    (59) %

















    Non-interest income (GAAP)

    d



    $              109,228



    $              144,306



    (24) %

    Less: Non-interest income adjustments

    a



    (53,323)



    4,326



    nm

    Operating non-interest income (non-GAAP)

    e



    $                55,905



    $              148,632



    (62) %

















    Revenue (GAAP)

    f=c+d



    $              113,137



    $              153,737



    (26) %

    Operating revenue (non-GAAP)

    g=c+e



    $                59,814



    $              158,063



    (62) %

















    Non-interest expense (GAAP) (1)

    h



    $                70,323



    $              108,175



    (35) %

    Less: Non-interest expense adjustments

    b



    —



    —



    nm

    Operating non-interest expense (non-GAAP)

    i



    $                70,323



    $              108,175



    (35) %

















    Net income (GAAP)

    j



    $                32,111



    $                34,171



    (6) %

    Provision for income taxes





    10,703



    11,391



    (6) %

    Income before provision for income taxes





    42,814



    45,562



    (6) %

    Provision for credit losses





    —



    —



    nm

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

    k



    42,814



    45,562



    (6) %

    Less: Non-interest income adjustments

    a



    (53,323)



    4,326



    nm

    Add: Non-interest expense adjustments

    b



    —



    —



    nm

    Operating PPNR (non-GAAP)

    l



    $              (10,509)



    $                49,888



    (121) %

















    Net income (GAAP)

    j



    $                32,111



    $                34,171



    (6) %

    Less: Non-interest income adjustments

    a



    (53,323)



    4,326



    nm

    Add: Non-interest expense adjustments

    b



    —



    —



    nm

    Tax effect of adjustments





    13,331



    (1,082)



    nm

    Operating net income (non-GAAP)

    m



    $                (7,881)



    $                37,415



    (121) %

















    Efficiency ratio

    h / f



    62.16 %



    70.36 %



    (8.20)

    Operating efficiency ratio

    i / g



    117.57 %



    68.44 %



    49.13

    Mortgage Banking net income / Consolidated net income





    12.65 %



    10.29 %



    2.36

    Mortgage Banking operating net income / Consolidated operating

    net income





    (3.03) %



    11.25 %



    (14.28)

    nm = not meaningful













     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/umpqua-reports-third-quarter-2022-results-301653857.html

    SOURCE Umpqua Holdings Corporation

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