Umpqua Reports Quarterly And Annual Results

PORTLAND, Ore., Jan. 22, 2020 /PRNewswire/ -- Umpqua Holdings Corporation UMPQ (the "Company") reported net income of $83.8 million for the fourth quarter of 2019, compared to $84.5 million for the third quarter of 2019 and $80.3 million for the fourth quarter of 2018.  Earnings per diluted common share were $0.38 for the fourth quarter of 2019, compared to $0.38 for the third quarter of 2019 and $0.36 for the fourth quarter of 2018.

(PRNewsfoto/Umpqua Holdings Corporation)

For the twelve months ended December 31, 2019, the Company reported net income of $354.1 million, or $1.60 per diluted common share, up from $316.3 million, or $1.43 per diluted common share, for the twelve months ended December 31, 2018.

"I am very pleased with the continued progress we made in 2019 on executing against our ambitious Next Gen goals," said Cort O'Haver, president and CEO of Umpqua Holdings Corporation.  "Annual loan and lease growth of $773 million in addition to deposit growth of $1.3 billion shows our emphasis on balanced growth has been effective.  We took the opportunity to reposition a portion of the balance sheet in the fourth quarter by selling loans with lower yields while reducing higher cost time deposits.  We will continue to focus on balanced growth, executing on our expense initiatives and investing in strategic digital initiatives in 2020, which will drive sustained profitability and long-term shareholder value." 

Notable items that impacted the fourth quarter 2019 financial results included:

  • $10.4 million loss on the fair value of the MSR asset, compared to the net $4.2 million gain in the prior quarter and the $13.1 million loss in the same period of the prior year.
  • $5.0 million gain on the fair value of the debt capital market swap derivatives attributable to the increase in long-term interest rates during the quarter.  This compares to the $4.6 million loss in the prior quarter and the$3.0 million loss in the same period of the prior year.
  • $1.9 million of exit or disposal costs, related primarily to planned store consolidations, compared to $2.0 million in the prior quarter and $0.8 million in the same period of the prior year.

Full-Year 2019 Highlights (compared to prior year):

  • Gross loan and lease growth of $773.0 million, or 4%;
  • Deposit growth of $1.3 billion, or 6%;
  • Net interest income decreased by $18.0 million, driven primarily by a decrease in short and long-term interest rates during the annual period which led to a decline in net interest margin, partially offset by an increase in loans and leases;
  • Provision for loan and lease losses increased by $16.6 million primarily due to loan and lease growth and a slightly higher net charge-off ratio;
  • Non-interest income increased by $60.4 million, driven primarily by the $76.3 million net gain recorded from the sale of the Visa Class B stock and other debt securities, partially offset by a reduction in net residential mortgage banking revenue;
  • Non-interest expense decreased by $20.4 million, driven primarily by lower salaries and benefits expense, lower occupancy and equipment expense, lower professional fees, and lower FDIC assessment expense, partially offset by a higher loss on other real estate owned (OREO); 
  • Paid dividends of $0.84 per common share (versus $0.82 per share in the prior year) and repurchased 300,000 shares of common stock; and
  • Book value increased by 6%, or $1.17 per common share, and tangible book value1 increased by 12%, or $1.20 per common share.

Fourth Quarter 2019 Highlights (compared to prior quarter):

  • Gross loan and lease balance diminishment of $325.1 million, or 2%, partially due to $117.9 million in non-SBA loan sales closed during the quarter.  Average loan and lease balances increased $208.3 million, or 1%, compared to the prior quarter;
  • Deposit growth of $46.8 million;
  • Net interest income decreased by $2.2 million, attributable to a lower average yield on loans and leases,  partially offset by lower funding costs;
  • Provision for loan and lease losses decreased by $7.0 million, driven by lower net charge offs of $14.9 million during the quarter compared to $18.0 million in the prior quarter;
  • Non-interest income decreased by $4.8 million reflecting the linked quarter decline in the fair value of the MSR asset, partially offset by the linked quarter increase in the fair value of debt capital market swap derivatives;
  • Non-interest expense decreased by $0.1 million, driven by lower state and local business taxes, lower marketing expense, and a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense;
  • Non-performing assets to total assets decreased by two basis points to 0.23%;
  • Estimated total risk-based capital ratio of 13.9% and estimated Tier 1 common to risk weighted assets ratio of 11.2%; and
  • Declared quarterly cash dividend of $0.21 per common share.

Balance Sheet

Total consolidated assets were $28.8 billion as of December 31, 2019, compared to $28.9 billion as of September 30, 2019 and $26.9 billion as of December 31, 2018.  Including secured off-balance sheet lines of credit, total available liquidity was $11.4 billion as of December 31, 2019, representing 40% of total assets and 51% of total deposits.

Gross loans and leases were $21.2 billion as of December 31, 2019, a decrease of $0.3 billion from $21.5 billion as of September 30, 2019.  This decrease reflects non-SBA loan sales of $117.9 million consistent with management plans to reposition a portion of the balance sheet by reducing lower yielding loans and leases while also reducing higher cost time deposits. 

Total deposits were $22.5 billion as of December 31, 2019, an increase of $46.8 million from $22.4 billion as of September 30, 2019.  This increase was primarily attributable to growth in money market and interest bearing demand accounts, partially offset by a seasonal decline in non-interest demand deposits.

Net Interest Income

Net interest income was $226.8 million for the fourth quarter of 2019, down $2.2 million from the prior quarter.  This decrease was driven primarily by lower average yields on earnings assets, partially offset by lower funding costs and a higher average balance of loans and leases.

The Company's net interest margin was 3.51% for the fourth quarter of 2019, down 12 basis points from 3.63% for the third quarter of 2019.  This decrease was driven primarily by the lower average yields on loans and leases, partially offset by lower funding costs and lower bond premium amortization.

Credit Quality

The allowance for loan and lease losses was $157.6 million, or 0.74% of loans and leases, as of December 31, 2019.  The provision for loan and lease losses was $16.3 million for the fourth quarter of 2019, a decrease of $7.0 million from the prior quarter level driven primarily lower net charge-offs.  Net charge-offs decreased by 6 basis points from the prior quarter to 0.28% of average loans and leases for the fourth quarter of 2019 (annualized).  As of December 31, 2019, non-performing assets decreased to 0.23% of total assets, from 0.25% as of September 30, 2019 and 0.36% as of  December 31, 2018.

Non-interest Income

Non-interest income was $83.7 million for the fourth quarter of 2019, down $4.8 million from the prior quarter.  This decrease reflects the decline in fair value for the MSR asset, partially offset by the gain on the debt capital market swap derivatives (see notable items above) and the $4.6 million gain related to the sale of loans recorded in the period compared to $1.8 million recorded in the third quarter of 2019.

Net revenue from the origination and sale of residential mortgages was $35.4 million for the fourth quarter of 2019, up $4.0 million from the prior quarter.  For-sale mortgage origination volume increased by 26% from the prior quarter, while the home lending gain on sale margin decreased to 3.34% for the fourth quarter of 2019.  Of the current quarter's mortgage production, 55% related to purchase activity, compared to 60% for the prior quarter and 80% for the same period in the prior year.

Non-interest Expense

Non-interest expense was $183.4 million for the fourth quarter of 2019, down $0.1 million from the prior quarter level.  This decrease was attributable to lower state and local business taxes, lower marketing expense, a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense.

Capital

As of December 31, 2019, the Company's book value per common share increased to $19.59 from $19.48 in the prior quarter, and its tangible book value per common share1 increased to $11.39 from $11.27 in the prior quarter.  During the fourth quarter of 2019, the Company declared a dividend of $0.21 per share.

The Company's estimated total risk-based capital ratio was 13.9% and its estimated Tier 1 common equity to risk weighted assets ratio was 11.2% as of December 31, 2019.  The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of December 31, 2019 are estimates, pending completion and filing of the Company's regulatory reports.

Non-GAAP Financial Measures

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

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

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

(Dollars in thousands, except per share data)



Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018

Total shareholders' equity



$

4,313,915





$

4,289,516





$

4,228,507





$

4,112,326





$

4,056,442



Subtract:





















Goodwill



1,787,651





1,787,651





1,787,651





1,787,651





1,787,651



Other intangible assets, net



18,346





19,750





21,155





22,560





23,964



Tangible common shareholders' equity



$

2,507,918





$

2,482,115





$

2,419,701





$

2,302,115





$

2,244,827



Total assets



$

28,846,809





$

28,930,855





$

27,986,075





$

27,355,625





$

26,939,781



Subtract:





















Goodwill



1,787,651





1,787,651





1,787,651





1,787,651





1,787,651



Other intangible assets, net



18,346





19,750





21,155





22,560





23,964



Tangible assets



$

27,040,812





$

27,123,454





$

26,177,269





$

25,545,414





$

25,128,166



Common shares outstanding at period end



220,229





220,212





220,499





220,457





220,255

























Total shareholders' equity to total assets ratio



14.95

%



14.83

%



15.11

%



15.03

%



15.06

%

Tangible common equity ratio



9.27

%



9.15

%



9.24

%



9.01

%



8.93

%

Book value per common share



$

19.59





$

19.48





$

19.18





$

18.65





$

18.42



Tangible book value per common share



$

11.39





$

11.27





$

10.97





$

10.44





$

10.19



About Umpqua Holdings Corporation

Umpqua Holdings Corporation UMPQ is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada.  Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquabank.com.

Earnings Conference Call Information

The Company will host its fourth quarter 2019 earnings conference call on Thursday, January 23, 2020, 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 fourth quarter and full year 2019 financial results.  There will be a live question-and-answer session following the presentation.  To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 9756638.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 9756638.  The earnings conference call will also be available as an audiocast, which can be accessed on the Company's investor relations page at www.umpquabank.com. 

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about the projected impact of strategic investments. 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, prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; lack of strategic growth opportunities or our failure to execute on those opportunities; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives on time and in amounts projected; our ability to successfully develop and market new products and technology; and changes in laws or regulations.

Umpqua Holdings Corporation

Consolidated Statements of Income

(Unaudited)



























Quarter Ended



% Change

(In thousands, except per share data)



Dec 31,

2019



Sep 30,

2019



Jun 30,

2019



Mar 31,

2019



Dec 31,

2018



Seq. 

Quarter



Year over

Year

Interest income:





























Loans and leases



$

262,109





$

266,111





$

264,110





$

258,747





$

254,093





(2)

%



3

%

Interest and dividends on investments:





























Taxable



13,361





12,546





10,287





19,956





27,381





6

%



(51)

%

Exempt from federal income tax



1,638





1,727





1,921





2,114





2,135





(5)

%



(23)

%

Dividends



579





599





574





517





538





(3)

%



8

%

Temporary investments and interest bearing deposits



4,343





4,204





4,708





925





2,621





3

%



66

%

Total interest income



282,030





285,187





281,600





282,259





286,768





(1)

%



(2)

%

Interest expense:





























Deposits



44,380





45,876





43,591





34,094





30,124





(3)

%



47

%

Securities sold under agreement to repurchase and federal funds purchased



431





448





403





810





185





(4)

%



133

%

Borrowings



5,080





4,238





4,563





3,683





3,326





20

%



53

%

Junior subordinated debentures



5,325





5,652





5,881





5,987





5,743





(6)

%



(7)

%

Total interest expense



55,216





56,214





54,438





44,574





39,378





(2)

%



40

%

Net interest income



226,814





228,973





227,162





237,685





247,390





(1)

%



(8)

%

Provision for loan and lease losses



16,252





23,227





19,352





13,684





17,219





(30)

%



(6)

%

Non-interest income:





























Service charges on deposits



16,656





16,627





15,953





15,278





16,035





0

%



4

%

Brokerage revenue



4,027





4,060





3,980





3,810





4,178





(1)

%



(4)

%

Residential mortgage banking revenue, net



34,050





47,000





9,529





11,231





15,150





(28)

%



125

%

Gain (loss) on sale of debt securities, net



2









(7,186)













nm





nm



(Loss) gain on equity securities, net



(84)





257





82,607





695





410





(133)

%



(120)

%

Gain on loan and lease sales, net



4,603





1,762





3,333





769





2,484





161

%



85

%

BOLI income



2,078





2,067





2,093





2,168





2,116





1

%



(2)

%

Other income



22,417





16,739





11,514





11,789





16,438





34

%



36

%

Total non-interest income



83,749





88,512





121,823





45,740





56,811





(5)

%



47

%

Non-interest expense:





























Salaries and employee benefits



108,847





106,819





104,049





100,658





102,109





2

%



7

%

Occupancy and equipment, net



36,513





35,446





36,032





36,245





35,949





3

%



2

%

Intangible amortization



1,404





1,405





1,405





1,404





1,542





0

%



(9)

%

FDIC assessments



2,867





2,587





2,837





2,942





2,619





11

%



9

%

Loss (gain) on other real estate owned, net



48





1,188





2,678





(51)





1,125





(96)

%



(96)

%

Other expenses



33,764





36,145





33,414





30,394





35,144





(7)

%



(4)

%

Total non-interest expense



183,443





183,590





180,415





171,592





178,488





0

%



3

%

Income before provision for income taxes



110,868





110,668





149,218





98,149





108,494





0

%



2

%

Provision for income taxes



27,118





26,166





37,408





24,116





28,183





4

%



(4)

%

Net income



$

83,750





$

84,502





$

111,810





$

74,033





$

80,311





(1)

%



4

%































Weighted average basic shares outstanding



220,222





220,285





220,487





220,366





220,247





0

%



0

%

Weighted average diluted shares outstanding



220,671





220,583





220,719





220,655





220,668





0

%



0

%

Earnings per common share – basic



$

0.38





$

0.38





$

0.51





$

0.34





$

0.36





0

%



6

%

Earnings per common share – diluted



$

0.38





$

0.38





$

0.51





$

0.34





$

0.36





0

%



6

%































nm = not meaningful





























 

Umpqua Holdings Corporation

Consolidated Statements of Income

(Unaudited)















Year Ended



% Change

(In thousands, except per share data)



Dec 31, 2019



Dec 31, 2018



Year over Year

Interest income:













Loans and leases



$

1,051,077





$

972,114





8

%

Interest and dividends on investments:













Taxable



56,150





76,014





(26)

%

Exempt from federal income tax



7,400





8,368





(12)

%

Dividends



2,269





1,988





14

%

Temporary investments and interest bearing deposits



14,180





8,665





64

%

Total interest income



1,131,076





1,067,149





6

%

Interest expense:













Deposits



167,941





92,685





81

%

Securities sold under agreement to repurchase and federal funds purchased



2,092





506





313

%

Borrowings



17,564





13,604





29

%

Junior subordinated debentures



22,845





21,715





5

%

Total interest expense



210,442





128,510





64

%

Net interest income



920,634





938,639





(2)

%

Provision for loan and lease losses



72,515





55,905





30

%

Non-interest income:













Service charges on deposits



64,514





62,124





4

%

Brokerage revenue



15,877





16,480





(4)

%

Residential mortgage banking revenue, net



101,810





118,235





(14)

%

(Loss) gain on sale of debt securities, net



(7,184)





14





nm



Gain (loss) on equity securities, net



83,475





(1,484)





nm



Gain on loan and lease sales, net



10,467





7,834





34

%

BOLI income



8,406





8,297





1

%

Other income



62,459





67,917





(8)

%

Total non-interest income



339,824





279,417





22

%

Non-interest expense:













Salaries and employee benefits



420,373





425,575





(1)

%

Occupancy and equipment, net



144,236





148,724





(3)

%

Intangible amortization



5,618





6,166





(9)

%

FDIC assessments



11,233





16,094





(30)

%

Loss on other real estate owned, net



3,863





867





346

%

Other expenses



133,717





142,039





(6)

%

Total non-interest expense



719,040





739,465





(3)

%

Income before provision for income taxes



468,903





422,686





11

%

Provision for income taxes



114,808





106,423





8

%

Net income



$

354,095





$

316,263





12

%















Weighted average basic shares outstanding



220,339





220,280





0

%

Weighted average diluted shares outstanding



220,650





220,737





0

%

Earnings per common share – basic



$

1.61





$

1.44





12

%

Earnings per common share – diluted



$

1.60





$

1.43





12

%















nm = not meaningful













 

Umpqua Holdings Corporation

Consolidated Balance Sheets

(Unaudited)















































% Change

(In thousands, except per share data)

Dec 31,

2019



Sep 30,

2019



Jun 30,

2019



Mar 31,

2019



Dec 31,

2018



Seq. 

Quarter



Year over

Year

Assets:



























Cash and due from banks

$

382,598





$

433,620





$

342,508





$

296,967





$

335,419





(12)

%



14

%

Interest bearing cash and temporary investments

980,158





757,824





691,283





605,841





287,218





29

%



241

%

Investment securities:



























Equity and other, at fair value

80,165





64,764





66,358





63,327





61,841





24

%



30

%

Available for sale, at fair value

2,814,682





2,842,076





2,698,398





2,894,778





2,977,108





(1)

%



(5)

%

Held to maturity, at amortized cost

3,260





3,320





3,416





3,478





3,606





(2)

%



(10)

%

Loans held for sale, at fair value

513,431





355,022





356,645





240,302





166,461





45

%



208

%

Loans and leases

21,195,684





21,520,794





20,953,371





20,405,997





20,422,666





(2)

%



4

%

Allowance for loan and lease losses

(157,629)





(156,288)





(151,069)





(144,872)





(144,871)





1

%



9

%

Net loans and leases

21,038,055





21,364,506





20,802,302





20,261,125





20,277,795





(2)

%



4

%

Restricted equity securities

46,463





54,463





43,063





47,466





40,268





(15)

%



15

%

Premises and equipment, net

201,460





203,391





210,285





217,595





227,423





(1)

%



(11)

%

Operating lease right-of-use assets

110,718





108,187





112,752





109,807









2

%



nm



Goodwill

1,787,651





1,787,651





1,787,651





1,787,651





1,787,651





0

%



0

%

Other intangible assets, net

18,346





19,750





21,155





22,560





23,964





(7)

%



(23)

%

Residential mortgage servicing rights, at fair value

115,010





151,383





139,780





158,946





169,025





(24)

%



(32)

%

Bank owned life insurance

320,611





318,533





316,435





314,303





313,626





1

%



2

%

Other assets

434,201





466,365





394,044





331,479





268,376





(7)

%



62

%

Total assets

$

28,846,809





$

28,930,855





$

27,986,075





$

27,355,625





$

26,939,781





0

%



7

%

Liabilities:



























Deposits

$

22,481,504





$

22,434,734





$

21,819,013





$

21,243,894





$

21,137,486





0

%



6

%

Securities sold under agreements to repurchase

311,308





296,717





308,052





288,944





297,151





5

%



5

%

Borrowings

906,635





1,106,674





821,712





932,420





751,788





(18)

%



21

%

Junior subordinated debentures, at fair value

274,812





267,798





277,028





294,121





300,870





3

%



(9)

%

Junior subordinated debentures, at amortized cost

88,496





88,553





88,610





88,667





88,724





0

%



0

%

Operating lease liabilities

119,429





116,924





121,742





118,520









2

%



nm



Deferred tax liability, net

52,928





67,055





57,757





45,202





25,846





(21)

%



105

%

Other liabilities

297,782





262,884





263,654





231,531





281,474





13

%



6

%

Total liabilities

24,532,894





24,641,339





23,757,568





23,243,299





22,883,339





0

%



7

%

Shareholders' equity:



























Common stock

3,514,000





3,511,493





3,514,391





3,511,731





3,512,874





0

%



0

%

Retained earnings

770,366





733,059





695,003





629,877





602,482





5

%



28

%

Accumulated other comprehensive income (loss)

29,549





44,964





19,113





(29,282)





(58,914)





(34)

%



(150)

%

Total shareholders' equity

4,313,915





4,289,516





4,228,507





4,112,326





4,056,442





1

%



6

%

Total liabilities and shareholders' equity

$

28,846,809





$

28,930,855





$

27,986,075





$

27,355,625





$

26,939,781





0

%



7

%





























Common shares outstanding at period end

220,229





220,212





220,499





220,457





220,255





0

%



0

%

Book value per common share

$

19.59





$

19.48





$

19.18





$

18.65





$

18.42





1

%



6

%

Tangible book value per common share

$

11.39





$

11.27





$

10.97





$

10.44





$

10.19





1

%



12

%

Tangible equity - common

$

2,507,918





$

2,482,115





$

2,419,701





$

2,302,115





$

2,244,827





1

%



12

%

Tangible common equity to tangible assets

9.27

%



9.15

%



9.24

%



9.01

%



8.93

%



0.12





0.34





 

Umpqua Holdings Corporation

Loan & Lease Portfolio

(Unaudited)































(Dollars in thousands)



Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



% Change





Amount



Amount



Amount



Amount



Amount



Seq. Quarter



Year

over

Year

Loans and leases:





























Commercial real estate:





























Non-owner occupied term, net



$

3,545,566





$

3,495,555





$

3,537,084





$

3,476,972





$

3,573,065





1

%



(1)

%

Owner occupied term, net



2,496,088





2,566,299





2,396,674





2,449,648





2,480,371





(3)

%



1

%

Multifamily, net



3,514,774





3,479,986





3,341,547





3,302,936





3,304,763





1

%



6

%

Construction & development, net



678,740





771,214





732,932





686,107





736,254





(12)

%



(8)

%

Residential development, net



189,010





191,500





199,421





205,963





196,890





(1)

%



(4)

%

Commercial:





























Term, net



2,232,817





2,310,759





2,271,346





2,185,322





2,232,923





(3)

%



0

%

Lines of credit & other, net



1,212,393





1,254,755





1,280,587





1,229,092





1,169,525





(3)

%



4

%

Leases & equipment finance, net



1,465,489





1,485,753





1,449,579





1,378,686





1,330,155





(1)

%



10

%

Residential real estate:





























Mortgage, net



4,215,424





4,245,674





3,995,643





3,768,955





3,635,073





(1)

%



16

%

Home equity loans & lines, net



1,237,512





1,224,578





1,215,215





1,170,252





1,176,477





1

%



5

%

   Consumer & other, net



407,871





494,721





533,343





552,064





587,170





(18)

%



(31)

%

Total loans, net of deferred fees and costs



$

21,195,684





$

21,520,794





$

20,953,371





$

20,405,997





$

20,422,666





(2)

%



4

%































Loan and leases mix:





























Commercial real estate:





























   Non-owner occupied term, net



17

%



16

%



17

%



17

%



17

%









   Owner occupied term, net



12

%



12

%



11

%



12

%



12

%









   Multifamily, net



16

%



16

%



16

%



16

%



16

%









Construction & development, net



3

%



4

%



3

%



3

%



4

%









Residential development, net



1

%



1

%



1

%



1

%



1

%









Commercial:





























Term, net



10

%



11

%



11

%



11

%



11

%









Lines of credit & other, net



6

%



6

%



6

%



6

%



6

%









Leases & equipment finance, net



7

%



7

%



7

%



7

%



6

%









Residential real estate:





























Mortgage, net



20

%



20

%



19

%



18

%



18

%









Home equity loans & lines, net



6

%



5

%



6

%



6

%



6

%









   Consumer & other, net



2

%



2

%



3

%



3

%



3

%









    Total



100

%



100

%



100

%



100

%



100

%









 

Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)































(Dollars in thousands)



Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



% Change





Amount



Amount



Amount



Amount



Amount



Seq. Quarter



Year over Year

Deposits:





























Demand, non-interest bearing



$

6,913,375





$

7,123,180





$

6,771,087





$

6,495,562





$

6,667,467





(3)

%



4

%

Demand, interest bearing



2,524,534





2,406,404





2,355,473





2,341,441





2,340,471





5

%



8

%

Money market



6,930,815





6,646,383





6,789,036





6,469,286





6,645,390





4

%



4

%

Savings



1,471,475





1,469,302





1,446,332





1,479,509





1,492,685





0

%



(1)

%

Time



4,641,305





4,789,465





4,457,085





4,458,096





3,991,473





(3)

%



16

%

Total



$

22,481,504





$

22,434,734





$

21,819,013





$

21,243,894





$

21,137,486





0

%



6

%































Total core deposits (1)



$

19,061,058





$

18,845,328





$

18,529,797





$

17,903,754





$

18,190,402





1

%



5

%































Deposit mix:





























Demand, non-interest bearing



31

%



32

%



31

%



31

%



32

%









Demand, interest bearing



11

%



11

%



11

%



11

%



11

%









Money market



31

%



30

%



31

%



30

%



31

%









Savings



6

%



6

%



7

%



7

%



7

%









Time



21

%



21

%



20

%



21

%



19

%









Total



100

%



100

%



100

%



100

%



100

%







































Number of open accounts:





























Demand, non-interest bearing



415,254





413,633





409,235





406,039





406,240











Demand, interest bearing



75,900





76,390





76,686





76,712





77,099











Money market



58,888





58,796





58,158





56,602





56,196











Savings



159,948





160,673





160,708





161,039





161,656











Time



62,952





62,122





60,571





58,210





54,388











Total



772,942





771,614





765,358





758,602





755,579









































Average balance per account:





























Demand, non-interest bearing



$

16.6





$

17.2





$

16.5





$

16.0





$

16.4











Demand, interest bearing



33.3





31.5





30.7





30.5





30.4











Money market



117.7





113.0





116.7





114.3





118.3











Savings



9.2





9.1





9.0





9.2





9.2











Time



73.7





77.1





73.6





76.6





73.4











Total



$

29.1





$

29.1





$

28.5





$

28.0





$

28.0













(1) Core deposits are defined as total deposits less time deposits greater than $100,000.

 

Umpqua Holdings Corporation

Credit Quality – Non-performing Assets

 (Unaudited)



































Quarter Ended



% Change

(Dollars in thousands)



Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



Seq. Quarter



Year over Year

Non-performing assets:





























Loans and leases on non-accrual status



$

26,244





$

31,636





$

35,022





$

44,586





$

50,823





(17)

%



(48)

%

Loans and leases past due 90+ days and accruing (1)



37,969





35,745





35,700





31,424





36,444





6

%



4

%

Total non-performing loans and leases



64,213





67,381





70,722





76,010





87,267





(5)

%



(26)

%

Other real estate owned



3,295





4,026





8,423





10,488





10,958





(18)

%



(70)

%

Total non-performing assets



$

67,508





$

71,407





$

79,145





$

86,498





$

98,225





(5)

%



(31)

%































Performing restructured loans and leases



$

18,576





$

14,309





$

15,267





$

15,726





$

13,924





30

%



33

%

Loans and leases past due 31-89 days



$

41,882





$

44,390





$

40,619





$

53,009





$

37,373





(6)

%



12

%

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



0.20

%



0.21

%



0.19

%



0.26

%



0.18

%









Non-performing loans and leases to total loans and leases (1)



0.30

%



0.31

%



0.34

%



0.37

%



0.43

%









Non-performing assets to total assets (1)



0.23

%



0.25

%



0.28

%



0.32

%



0.36

%













(1)

Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $4.3 million, $5.2 million, $5.4 million, $158,000, and $8.9 million at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.



 

Umpqua Holdings Corporation

Credit Quality – Allowance for Loan and Lease Losses

 (Unaudited)



































Quarter Ended



% Change

(Dollars in thousands)



Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



Seq. Quarter



Year over Year

Allowance for loan and lease losses:

























Balance beginning of period



$

156,288





$

151,069





$

144,872





$

144,871





$

144,026











Provision for loan and lease losses



16,252





23,227





19,352





13,684





17,219





(30)

%



(6)

%

Charge-offs



(18,734)





(23,112)





(16,707)





(17,152)





(19,527)





(19)

%



(4)

%

Recoveries



3,823





5,104





3,552





3,469





3,153





(25)

%



21

%

Net charge-offs



(14,911)





(18,008)





(13,155)





(13,683)





(16,374)





(17)

%



(9)

%

Total allowance for loan and lease losses



157,629





156,288





151,069





144,872





144,871





1

%



9

%

Reserve for unfunded commitments



5,106





5,085





4,857





4,654





4,523





0

%



13

%

Total allowance for credit losses



$

162,735





$

161,373





$

155,926





$

149,526





$

149,394





1

%



9

%































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



0.28

%



0.34

%



0.26

%



0.27

%



0.32

%









Recoveries to gross charge-offs



20.41

%



22.08

%



21.26

%



20.23

%



16.15

%









Allowance for loan and lease losses to loans and leases



0.74

%



0.73

%



0.72

%



0.71

%



0.71

%









Allowance for credit losses to loans and leases



0.77

%



0.75

%



0.74

%



0.73

%



0.73

%









 

Umpqua Holdings Corporation

Credit Quality – Allowance for Loan and Lease Losses

(Unaudited)





Year Ended



% Change

(Dollars in thousands)



Dec 31, 2019



Dec 31, 2018



Year over Year

Allowance for credit losses:









Balance beginning of period



$

144,871





$

140,608







Provision for loan and lease losses



72,515





55,905





30

%

Charge-offs



(75,705)





(66,050)





15

%

Recoveries



15,948





14,408





11

%

Net charge-offs



(59,757)





(51,642)





16

%

Total allowance for loan and lease losses



157,629





144,871





9

%

Reserve for unfunded commitments



5,106





4,523





13

%

Total allowance for credit losses



$

162,735





$

149,394





9

%















Net charge-offs to average loans and leases



0.29

%



0.26

%





Recoveries to gross charge-offs



21.07

%



21.81

%





 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



























Quarter Ended



% Change





Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



Seq. Quarter



Year

over

Year

Average Rates:





























Yield on loans held for sale



4.25

%



4.82

%



5.03

%



5.95

%



5.81

%



(0.57)





(1.56)



Yield on loans and leases



4.80

%



4.93

%



5.07

%



5.06

%



4.97

%



(0.13)





(0.17)



Yield on taxable investments



2.05

%



1.99

%



1.62

%



2.96

%



4.11

%



0.06





(2.06)



Yield on tax-exempt investments (1)



3.23

%



3.30

%



3.42

%



3.59

%



3.70

%



(0.07)





(0.47)



Yield on interest bearing cash and temporary investments



1.65

%



2.20

%



2.41

%



2.44

%



2.25

%



(0.55)





(0.60)



Total yield on earning assets (1)



4.36

%



4.52

%



4.59

%



4.79

%



4.81

%



(0.16)





(0.45)

































Cost of interest bearing deposits



1.13

%



1.19

%



1.16

%



0.97

%



0.85

%



(0.06)





0.28



Cost of securities sold under agreements





























to repurchase and fed funds purchased



0.56

%



0.57

%



0.55

%



0.88

%



0.26

%



(0.01)





0.30



Cost of borrowings



1.96

%



1.95

%



2.03

%



1.88

%



1.75

%



0.01





0.21



Cost of junior subordinated debentures



5.92

%



6.14

%



6.17

%



6.24

%



6.13

%



(0.22)





(0.21)



Total cost of interest bearing liabilities



1.27

%



1.33

%



1.31

%



1.14

%



1.00

%



(0.06)





0.27

































Net interest spread (1)



3.09

%



3.19

%



3.28

%



3.65

%



3.81

%



(0.10)





(0.72)



Net interest margin (1)



3.51

%



3.63

%



3.70

%



4.03

%



4.15

%



(0.12)





(0.64)

































Performance Ratios:





























Return on average assets



1.15

%



1.18

%



1.62

%



1.12

%



1.19

%



(0.03)





(0.04)



Return on average tangible assets



1.22

%



1.26

%



1.73

%



1.20

%



1.28

%



(0.04)





(0.06)



Return on average common equity



7.70

%



7.87

%



10.80

%



7.34

%



7.90

%



(0.17)





(0.20)



Return on average tangible common equity



13.24

%



13.67

%



19.14

%



13.17

%



14.34

%



(0.43)





(1.10)



Efficiency ratio – Consolidated



59.00

%



57.76

%



51.64

%



60.44

%



58.58

%



1.24





0.42



Efficiency ratio – Bank



57.56

%



56.22

%



50.16

%



58.57

%



57.67

%



1.34





(0.11)





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

 

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)















Year Ended



% Change





Dec 31, 2019



Dec 31, 2018



Year over Year

Average Rates:













Yield on loans held for sale



4.83

%



5.02

%



(0.19)



Yield on loans and leases



4.96

%



4.90

%



0.06



Yield on taxable investments



2.16

%



2.86

%



(0.70)



Yield on tax-exempt investments (1)



3.40

%



3.66

%



(0.26)



Yield on temporary investments and interest bearing cash



2.06

%



1.94

%



0.12



Total yield on earning assets (1)



4.56

%



4.59

%



(0.03)

















Cost of interest bearing deposits



1.12

%



0.67

%



0.45



Cost of securities sold under agreements













to repurchase and fed funds purchased



0.65

%



0.18

%



0.47



Cost of borrowings



1.96

%



1.73

%



0.23



Cost of junior subordinated debentures



6.12

%



5.86

%



0.26



Total cost of interest bearing liabilities



1.26

%



0.84

%



0.42

















Net interest spread (1)



3.30

%



3.75

%



(0.45)



Net interest margin (1)



3.71

%



4.04

%



(0.33)

















Performance Ratios:













Return on average assets



1.27

%



1.21

%



0.06



Return on average tangible assets



1.35

%



1.30

%



0.05



Return on average common equity



8.42

%



7.90

%



0.52



Return on average tangible common equity



14.77

%



14.45

%



0.32



Efficiency ratio – Consolidated



56.97

%



60.61

%



(3.64)



Efficiency ratio – Bank



55.40

%



58.60

%



(3.20)





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

 

Umpqua Holdings Corporation

Average Balances

(Unaudited)















Quarter Ended



% Change

(Dollars in thousands)

Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



Seq. Quarter



Year over Year

Temporary investments and interest bearing cash

$

1,045,975





$

759,416





$

783,703





$

153,347





$

462,621





38

%



126

%

Investment securities, taxable

2,719,089





2,648,092





2,683,472





2,757,644





2,716,616





3

%



0

%

Investment securities, tax-exempt

244,895





252,765





271,633





287,366





282,998





(3)

%



(13)

%

Loans held for sale

415,169





328,155





264,445





187,656





238,958





27

%



74

%

Loans and leases

21,379,239





21,170,915





20,605,963





20,388,988





20,051,674





1

%



7

%

Total interest earning assets

25,804,367





25,159,343





24,609,216





23,775,001





23,752,867





3

%



9

%

Goodwill and other intangible assets, net

1,806,791





1,808,191





1,809,583





1,811,007





1,812,487





0

%



0

%

Total assets

28,981,387





28,356,982





27,709,310





26,811,621





26,672,224





2

%



9

%





























Non-interest bearing demand deposits

7,037,320





6,880,093





6,556,090





6,505,615





6,828,730





2

%



3

%

Interest bearing deposits

15,550,483





15,289,464





15,069,198





14,304,325





14,138,852





2

%



10

%

Total deposits

22,587,803





22,169,557





21,625,288





20,809,940





20,967,582





2

%



8

%

Interest bearing liabilities

17,237,770





16,827,917





16,646,949





15,858,561





15,547,250





2

%



11

%





























Shareholders' equity - common

4,317,277





4,260,810





4,153,175





4,091,174





4,035,125





1

%



7

%

Tangible common equity (1)

2,510,486





2,452,619





2,343,592





2,280,167





2,222,638





2

%



13

%

 

Umpqua Holdings Corporation

Average Balances

(Unaudited)





Year Ended

% Change

(Dollars in thousands)



Dec 31, 2019



Dec 31, 2018



Year over Year

Temporary investments and interest bearing cash



$

688,258





$

446,500





54

%

Investment securities, taxable



2,701,821





2,729,950





(1)

%

Investment securities, tax-exempt



264,017





281,906





(6)

%

Loans held for sale



299,560





288,288





4

%

Loans and leases



20,889,769





19,562,369





7

%

Total interest earning assets



24,843,425





23,309,013





7

%

Goodwill and other intangible assets, net



1,808,879





1,814,756





0

%

Total assets



27,971,844





26,210,933





7

%















Non-interest bearing demand deposits



6,746,607





6,699,112





1

%

Interest bearing deposits



15,057,428





13,820,497





9

%

Total deposits



21,804,035





20,519,609





6

%

Interest bearing liabilities



16,647,085





15,264,375





9

%















Shareholders' equity - common



4,206,380





4,002,700





5

%

Tangible common equity (1)



2,397,501





2,187,944





10

%



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

 

Umpqua Holdings Corporation

Average Rates and Balances

(Unaudited)

(dollars in thousands)

Quarter Ended



December 31, 2019



September 30, 2019



December 31, 2018



Average Balance



Interest Income or Expense



Average Yields or Rates



Average Balance



Interest Income or Expense



Average Yields or Rates



Average Balance



Interest Income or Expense



Average Yields or Rates

INTEREST-EARNING ASSETS:



































Loans held for sale

$

415,169





$

4,408





4.25

%



$

328,155





$

3,953





4.82

%



$

238,958





$

3,473





5.81

%

Loans and leases (1)

21,379,239





257,701





4.80

%



21,170,915





262,158





4.93

%



20,051,674





250,620





4.97

%

Taxable securities

2,719,089





13,940





2.05

%



2,648,092





13,145





1.99

%



2,716,616





27,919





4.11

%

Non-taxable securities (2)

244,895





1,980





3.23

%



252,765





2,086





3.30

%



282,998





2,619





3.70

%

Temporary investments and interest-bearing cash

1,045,975





4,343





1.65

%



759,416





4,204





2.20

%



462,621





2,621





2.25

%

Total interest-earning assets

25,804,367





$

282,372





4.36

%



25,159,343





$

285,546





4.52

%



23,752,867





$

287,252





4.81

%

Other assets

3,177,020













3,197,639













2,919,357











Total assets

$

28,981,387













$

28,356,982













$

26,672,224











INTEREST-BEARING LIABILITIES:



































Interest-bearing demand deposits

$

2,446,137





$

3,485





0.57

%



$

2,363,626





$

3,117





0.52

%



$

2,319,613





$

2,659





0.45

%

Money market deposits

6,853,118





13,690





0.79

%



6,962,370





16,575





0.94

%



6,371,127





9,170





0.57

%

Savings deposits

1,463,744





509





0.14

%



1,462,198





557





0.15

%



1,488,768





490





0.13

%

Time deposits

4,787,484





26,696





2.21

%



4,501,270





25,627





2.26

%



3,959,344





17,805





1.78

%

Total interest-bearing deposits

15,550,483





44,380





1.13

%



15,289,464





45,876





1.19

%



14,138,852





30,124





0.85

%

Repurchase agreements and federal funds purchased

303,230





431





0.56

%



313,089





448





0.57

%



284,847





185





0.26

%

Borrowings

1,027,311





5,080





1.96

%



860,285





4,238





1.95

%



751,773





3,326





1.75

%

Junior subordinated debentures

356,746





5,325





5.92

%



365,079





5,652





6.14

%



371,778





5,743





6.13

%

Total interest-bearing liabilities

17,237,770





$

55,216





1.27

%



16,827,917





$

56,214





1.33

%



15,547,250





$

39,378





1.00

%

Non-interest-bearing deposits

7,037,320













6,880,093













6,828,730











Other liabilities

389,020













388,162













261,119











Total liabilities

24,664,110













24,096,172













22,637,099











Common equity

4,317,277













4,260,810













4,035,125











Total liabilities and shareholders' equity

$

28,981,387













$

28,356,982













$

26,672,224











NET INTEREST INCOME





$

227,156













$

229,332













$

247,874







NET INTEREST SPREAD









3.09

%











3.19

%











3.81

%

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









3.51

%











3.63

%











4.15

%





(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 $342,000 for the three months ended December 31, 2019 as compared to $359,000 for September 30, 2019 and $484,000 for December 31, 2018. 



 

Umpqua Holdings Corporation

Average Rates and Balances

(Unaudited)

(dollars in thousands)

Year Ended



December 31, 2019



December 31, 2018



Average Balance



Interest Income or Expense



Average Yields or Rates



Average Balance



Interest Income or Expense



Average Yields or Rates

INTEREST-EARNING ASSETS:























Loans held for sale

$

299,560





$

14,477





4.83

%



$

288,288





$

14,475





5.02

%

Loans and leases (1)

20,889,769





1,036,600





4.96

%



19,562,369





957,639





4.90

%

Taxable securities

2,701,821





58,419





2.16

%



2,729,950





78,002





2.86

%

Non-taxable securities (2)

264,017





8,971





3.40

%



281,906





10,316





3.66

%

Temporary investments and interest-bearing cash

688,258





14,180





2.06

%



446,500





8,665





1.94

%

Total interest-earning assets

24,843,425





$

1,132,647





4.56

%



23,309,013





$

1,069,097





4.59

%

Other assets

3,128,419













2,901,920











Total assets

$

27,971,844













$

26,210,933











INTEREST-BEARING LIABILITIES:























Interest-bearing demand deposits

$

2,365,845





$

12,040





0.51

%



$

2,333,662





$

7,675





0.33

%

Money market deposits

6,740,502





56,633





0.84

%



6,438,175





27,599





0.43

%

Savings deposits

1,467,263





1,746





0.12

%



1,473,134





1,356





0.09

%

Time deposits

4,483,818





97,522





2.17

%



3,575,526





56,055





1.57

%

Total interest-bearing deposits

15,057,428





167,941





1.12

%



13,820,497





92,685





0.67

%

Repurchase agreements and federal funds purchased

319,723





2,092





0.65

%



287,767





506





0.18

%

Borrowings

896,681





17,564





1.96

%



785,593





13,604





1.73

%

Junior subordinated debentures

373,253





22,845





6.12

%



370,518





21,715





5.86

%

Total interest-bearing liabilities

16,647,085





$

210,442





1.26

%



15,264,375





$

128,510





0.84

%

Non-interest-bearing deposits

6,746,607













6,699,112











Other liabilities

371,772













244,746











Total liabilities

23,765,464













22,208,233











Common equity

4,206,380













4,002,700











Total liabilities and shareholders' equity

$

27,971,844













$

26,210,933











NET INTEREST INCOME





$

922,205













$

940,587







NET INTEREST SPREAD









3.30

%











3.75

%

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









3.71

%











4.04

%

(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 $1.6 million for the twelve months ended December 31, 2019 as compared to $1.9 million for the same period in 2018. 

 

Umpqua Holdings Corporation

Residential Mortgage Banking Activity

(Unaudited)





Quarter Ended



% Change

(Dollars in thousands)



Dec 31, 2019



Sep 30, 2019



Jun 30, 2019



Mar 31, 2019



Dec 31, 2018



Seq. Quarter



Year

over Year

Residential mortgage banking revenue:





























Origination and sale



$

35,438





$

31,432





$

23,151





$

14,373





$

16,665





13

%



113

%

Servicing



8,981





11,358





11,036





10,824





11,555





(21)

%



(22)

%

Change in fair value of MSR asset:





























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



(5,237)





(6,835)





(6,905)





(6,431)





(6,425)





(23)

%



(18)

%

Changes due to valuation inputs or assumptions



(5,132)





11,045





(17,753)





(7,535)





(6,645)





(146)

%



(23)

%

Total



$

34,050





$

47,000





$

9,529





$

11,231





$

15,150





(28)

%



125

%































Closed loan volume:





























Portfolio



$

335,511





$

611,022





$

481,878





$

318,612





$

312,524





(45)

%



7

%

For-sale



1,060,016





844,442





698,150





487,090





589,355





26

%



80

%

Total



$

1,395,527





$

1,455,464





$

1,180,028





$

805,702





$

901,879





(4)

%



55

%































Gain on sale margin:





























Based on for-sale volume



3.34

%



3.72

%



3.32

%



2.95

%



2.83

%



(0.38)





0.51

































Residential mortgage servicing rights:





























Balance, beginning of period



$

151,383





$

139,780





$

158,946





$

169,025





$

175,038





8

%



(14)

%

Additions for new MSR capitalized



8,397





7,393





5,492





3,887





7,057





14

%



19

%

Sale of MSR assets



(34,401)





















nm





nm



Changes in fair value of MSR asset:





























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



(5,237)





(6,835)





(6,905)





(6,431)





(6,425)





(23)

%



(18)

%

Changes due to valuation inputs or assumptions



(5,132)





11,045





(17,753)





(7,535)





(6,645)





(146)

%



(23)

%

Balance, end of period



$

115,010





$

151,383





$

139,780





$

158,946





$

169,025





(24)

%



(32)

%































Residential mortgage loans serviced for others



$

12,276,943





$

15,707,519





$

15,796,102





$

15,902,587





$

15,978,885





(22)

%



(23)

%

MSR as % of serviced portfolio



0.94

%



0.96

%



0.88

%



1.00

%



1.06

%



(0.02)





(0.12)

































 

Umpqua Holdings Corporation

Residential Mortgage Banking Activity

(Unaudited)





Year Ended



% Change

(Dollars in thousands)



Dec 31, 2019



Dec 31, 2018



Year over Year

Residential mortgage banking revenue:













Origination and sale



$

104,394





$

88,644





18

%

Servicing



42,199





42,786





(1)

%

Change in fair value of MSR asset:













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



(25,408)





(24,533)





4

%

Changes due to valuation inputs or assumptions



(19,375)





11,338





(271)

%

Total



$

101,810





$

118,235





(14)

%















Closed loan volume:













Portfolio



$

1,747,023





$

1,168,829





49

%

For-sale



3,089,698





2,872,994





8

%

Total



$

4,836,721





$

4,041,823





20

%















Gain on sale margin:













Based on for-sale volume



3.38

%



3.09

%



0.29

















Residential mortgage servicing rights:













Balance, beginning of period



$

169,025





$

153,151





10

%

Additions for new MSR capitalized



25,169





29,069





(13)

%

Sale of MSR assets



(34,401)









nm



Changes in fair value of MSR asset:













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



(25,408)





(24,533)





4

%

Changes due to valuation inputs or assumptions



(19,375)





11,338





(271)

%

Balance, end of period



$

115,010





$

169,025





(32)

%

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/umpqua-reports-quarterly-and-annual-results-300991468.html

SOURCE Umpqua Holdings Corporation

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