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/ --
UMPQUA REPORTS THIRD QUARTER 2022 RESULTS | ||||||
$0.39 | $84 | 13.02 % | 13.2 % | |||
Net earnings per diluted | Net income ($ in millions) | Return on average tangible | Total risk-based capital ratio | |||
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 | • 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 | • 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 | • 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 | • 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 $1.4 million in exit and disposal costs. | |
3Q22 KEY FINANCIAL DATA | |||||
PERFORMANCE | 3Q22 | 2Q22 | 3Q21 | ||
Return on average assets | 1.09 % | 1.04 % | 1.40 % | ||
Return on average tangible | 13.02 % | 12.23 % | 15.88 % | ||
Operating return on average | 1.33 % | 1.06 % | 1.40 % | ||
Operating return on average | 15.90 % | 12.49 % | 15.88 % | ||
Net interest margin | 3.88 % | 3.41 % | 3.21 % | ||
Efficiency ratio - consolidated | 56.07 % | 59.12 % | 59.44 % | ||
Loan to deposit ratio | 95.12 % | 93.50 % | 81.65 % | ||
INCOME STATEMENT ($ in 000s, excl. per share data) | 3Q22 | 2Q22 | 3Q21 | ||
Net interest income | $287,604 | $248,170 | $235,074 | ||
Provision (recapture) for | $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 | $163,793 | $125,994 | $124,955 | ||
Earnings per common share - | $0.39 | $0.36 | $0.49 | ||
Operating earnings per | $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 | $11.11 | $11.57 | $12.52 | ||
Tangible book value per | $13.18 | $12.99 | $12.43 | ||
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 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.
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 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 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.
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 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.
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/
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.
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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. Quarter | 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 | 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 | 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 | |||
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 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Seq. Quarter | Year | ||||||
Assets: | |||||||||||||
Cash and due from banks | $ 321,447 | $ 315,348 | $ 307,144 | $ 222,015 | $ 395,555 | 2 % | (19) % | ||||||
Interest bearing cash and temporary | 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 | (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 | 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 | 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 | 325,744 | 321,268 | 305,719 | 293,081 | 299,508 | 1 % | 9 % | ||||||
Junior subordinated debentures, at | 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 | (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 | 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 | $ 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 | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | Year over | ||||||||
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 | $ 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 | 3.04 % | 5.71 % | 8.92 % | 10.78 % | 11.03 % | (2.67) | (7.99) | |||||||
Average loans and leases / Average interest earning | 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 | 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 | 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. | 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 | $ 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. | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | 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 | 24,055 | 18,159 | 18,365 | 18,865 | 24,152 | 32 % | 0 % | ||||||||
Loans and leases past due 90+ days and | |||||||||||||||
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+ | 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 | 0.21 % | 0.14 % | 0.18 % | 0.14 % | 0.19 % | 0.07 | 0.02 | ||||||||
Non-performing loans and leases to total | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | Year over | ||||||||
Allowance for credit losses on loans and | |||||||||||||||
Balance, beginning of period | $ 261,111 | $ 248,564 | $ 248,412 | $ 257,560 | $ 279,887 | 5 % | (7) % | ||||||||
Provision (recapture) for credit losses on | 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 | (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 | 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 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
September 30, 2022 | June 30, 2022 | September 30, 2021 | |||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||
INTEREST-EARNING | |||||||||||||||||
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 | 893,471 | 5,115 | 2.27 % | 1,663,454 | 2,919 | 0.70 % | 3,224,846 | 1,237 | 0.15 % | ||||||||
Total interest-earning | 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 | |||||||||||||||||
Interest-bearing demand | $ 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 | 15,350,390 | 9,090 | 0.23 % | 15,308,058 | 4,015 | 0.11 % | 15,679,755 | 5,100 | 0.13 % | ||||||||
Repurchase agreements | 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 | 409,151 | 5,491 | 5.33 % | 393,964 | 4,001 | 4.07 % | 375,726 | 3,014 | 3.18 % | ||||||||
Total interest-bearing | 16,359,575 | $ 15,924 | 0.39 % | 16,220,936 | $ 8,132 | 0.20 % | 16,583,803 | $ 8,351 | 0.20 % | ||||||||
Non-interest-bearing | 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 | $ 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 | 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 | |||||||||||
(Unaudited) | |||||||||||
(dollars in thousands) | Nine Months Ended | ||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||
Average | Interest | Average | Average | Interest | Average | ||||||
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 | 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 | 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. | Year | |||||||
Net interest income | $ 286,532 | $ 247,009 | $ 227,087 | $ 231,250 | $ 232,348 | 16 % | 23 % | |||||||
Provision (recapture) for credit | 27,572 | 18,692 | 4,804 | (736) | (18,919) | 48 % | (246) % | |||||||
Non-interest income | ||||||||||||||
Gain on sale of debt securities, | — | — | 2 | 4 | — | nm | nm | |||||||
Loss 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 | (26,397) | (15,210) | (21,049) | (2,672) | 3,432 | 74 % | (869) % | |||||||
Non-interest income (excluding | 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 | 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. | 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 | ||||||||||||||
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 | ||||||||||||||
Changes due to | (4,978) | (4,961) | (5,347) | (5,311) | (4,681) | 0 % | 6 % | |||||||
Changes due to valuation inputs | 16,403 | 10,899 | 40,149 | 15,415 | (634) | 51 % | (2,687) % | |||||||
MSR hedge loss | (14,128) | — | — | — | — | nm | nm | |||||||
Non-interest income (excluding | 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 | 2.64 % | 2.29 % | 2.20 % | 2.08 % | 2.02 % | |||||||||
MSR Statistics: | ||||||||||||||
Residential mortgage loans serviced | $ 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 | Sep 30, 2022 | Sep 30, 2021 | Year over | |||||||
Net interest income | $ 760,628 | $ 676,837 | 12 % | $ 3,909 | $ 9,431 | (59) % | ||||||
Provision (recapture) for credit | 51,068 | (41,915) | (222) % | — | — | nm | ||||||
Non-interest income | ||||||||||||
Residential mortgage banking | ||||||||||||
Origination and sale | — | — | nm | 42,460 | 134,165 | (68) % | ||||||
Servicing | — | — | nm | 28,174 | 27,379 | 3 % | ||||||
Change in fair value of MSR | nm | |||||||||||
Changes due to | — | — | nm | (15,286) | (13,592) | 12 % | ||||||
Changes due to valuation inputs | — | — | 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 | (62,656) | 5,704 | (1198) % | — | — | nm | ||||||
Non-interest income (excluding | 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 | 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 | 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. |
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 | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | 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 | $ (449,560) | (308,147) | (183,756) | 1,759 | 20,209 | 46 % | nm | ||||||||
Tangible common shareholders' equity, | 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 | 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 | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | 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 | (26,397) | (15,210) | (21,049) | (2,672) | 3,432 | 74 % | nm | ||||||||
Change in fair value of MSR due to | 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- | 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- | 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- | 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 | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | 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 | 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 | 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 | 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 | 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | 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 | (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 | 102.63 % | 92.30 % | 68.99 % | 83.97 % | 94.63 % | 10.33 | 8.00 | ||||||||
Core Banking 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, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Seq. | Year over | ||||||||
Non-Interest Income Adjustments | |||||||||||||||
Change in fair value of MSR due to valuation | $ 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- | 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 | (2.63) % | 7.70 % | 31.01 % | 16.03 % | 5.37 % | (10.33) | (8.00) | ||||||||
Mortgage Banking 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 | (3.03) % | 11.25 % | (14.28) | ||||
nm = not meaningful | |||||||
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SOURCE Umpqua Holdings Corporation