UMPQUA REPORTS FIRST QUARTER 2022 RESULTS

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 6/13/2026

1. ORCL
2. SPY
3. SPCX
4. USO
5. CHWY
6. NAVN
7. HUMA
8. NVDA
9. CRWV
10. CME

April 20, 2022 4:15 PM UTC

First quarter 2022 Results

  • Net income of $91.2 million, or $0.42 per common share
  • Operating net income of $77.6 million, or $0.36 per common share
  • Non-PPP loan balances increased $630.2 million or 2.8%
  • Deposit balances increased $104.9 million or 0.4%
  • Provision for credit losses of $4.8 million

PORTLAND, Ore., April 20, 2022 /PRNewswire/ --

$0.42

$91

13.66%

14.0%

Net earnings per diluted common share

Net income ($ in millions)

Return on average tangible common equity ("ROATCE")1

Total risk-based capital ratio (estimated)

 

CEO Commentary

"Umpqua's first quarter results demonstrate our ability to organically grow the franchise while planning for our pending combination with Columbia Banking System," said Cort O'Haver, President and CEO. "First quarter non-PPP (Paycheck Protection Program) loan growth of $630 million is commendable in its own right given typical seasonal trends, but it is particularly notable on the heels of fourth quarter's record growth. We actively monitor evolving trends in our markets and beyond, and we will continue to manage our business to support our associates, customers, and communities while creating shareholder value."

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

 

1Q22 HIGHLIGHTS (COMPARED TO 4Q21)

Net InterestIncome andNIM

•   Net interest income decreased by $4.6 million on a quarter-to-quarter basis due to lower PPP-related income as net interest income was otherwise stable despite two fewer days in the quarter.

•   Net interest margin was 3.14%, down one basis point from the prior period due entirely to lower PPP fees. The impact was nearly offset by higher average non-PPP loan balances and lower interest expense.

Non-InterestIncome andExpense

•   Non-interest income decreased by $2.8 million. The quarter's results were notably impacted by fair value adjustments captured in mortgage banking revenue and other income that reflect the quarter's interest rate changes.

•   Non-interest expense decreased by $17.3 million due to lower merger-related charges and salaries and benefits expense.

CreditQuality

•   Net charge-offs remained low at 0.10% of average loans and leases (annualized).

•   A provision expense of $4.8 million compares to a provision recapture of $(0.7) million in the prior quarter.

•   Non-performing assets to total assets declined to 0.14%, down 3 bps from the prior quarter end.

Capital

•   Estimated total risk-based capital ratio of 14.0% and estimated Tier 1 Risk Based Capital ratio of 11.3%.

•   Paid a quarterly cash dividend of $0.21 per common share on February 25, 2022, to shareholders of record as of February 15, 2022.

Notable items

•   Executing structural changes in the mortgage banking segment, inclusive of evaluating MSR hedges.

•   $2.3 million in merger-related expenses and $3.0 million in exit and disposal costs.

 

1Q22 KEY FINANCIAL DATA

PERFORMANCE METRICS

1Q22

4Q21

1Q21

Return on average assets

1.21%

1.13%

1.49%

Return on average tangible common equity1

13.66%

12.94%

16.43%

Operating return on average assets1

1.03%

1.23%

1.41%

Operating return on average tangible common equity1

11.62%

14.03%

15.59%

Net interest margin

3.14%

3.15%

3.18%

Efficiency ratio - consolidated

59.02%

63.10%

56.74%

Loan to deposit ratio

86.05%

84.80%

85.61%

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

1Q22

4Q21

1Q21

Net interest income

$228,763

$233,379

$221,431

Provision (recapture) for credit losses

$4,804

($736)

$—

Non-interest income

$79,969

$82,738

$108,800

Non-interest expense

$182,430

$199,711

$187,592

Pre-provision net revenue1

$126,302

$116,406

$142,639

Operating pre-provision net revenue1

$108,125

$122,633

$135,315

Earnings per common share - diluted

$0.42

$0.41

$0.49

Operating earnings per common share - diluted1

$0.36

$0.44

$0.46

Dividends paid per share

$0.21

$0.21

$0.21

BALANCE SHEET

1Q22

4Q21

1Q21

Total assets

      $30.6B

      $30.6B

      $30.0B

Loans and leases

      $23.0B

      $22.6B

      $22.2B

Total deposits

      $26.7B

      $26.6B

      $25.9B

Book value per common share

$12.02

$12.69

$12.16

Tangible book value per share1

$11.98

$12.65

$12.10

Tangible book value per share, ex AOCI1

$12.83

$12.64

$11.92

Balance SheetTotal consolidated assets were $30.6 billion as of March 31, 2022, compared to $30.6 billion as of December 31, 2021 and $30.0 billion as of March 31, 2021.  Including secured off-balance sheet lines of credit, total available liquidity was $15.7 billion as of March 31, 2022, representing 51% of total assets and 59% of total deposits.

Gross loans and leases were $23.0 billion as of March 31, 2022, an increase of $422.6 million relative to December 31, 2021.  The increase is due to non-PPP loan growth of $630.2 million that offset a 55% decline in PPP balances to $172.8 million as related loan forgiveness continued. Commercial real estate and residential mortgage portfolios drove the quarter's net expansion. Excluding PPP balances, commercial loans contracted by 1.0% in the first quarter as 3.9% growth in the fourth quarter reduced the associated pipeline, which now sits at a normalized level in April. Please refer to additional loan tables in the Q1 2022 Earnings Presentation available on our website for select underwriting characteristics of the loan portfolio.

Total deposits were $26.7 billion as of March 31, 2022, an increase of $104.9 million or 0.4% from $26.6 billion as of December 31, 2021. The increase is attributable to growth in demand and savings deposits, which offset a continued decline in time deposits and lower money market balances.

Net Interest IncomeNet interest income was $228.8 million for the first quarter of 2022, down $4.6 million from the prior quarter.  The decrease was driven by a $4.3 million decline in PPP fees and related interest income due to loan forgiveness that continued through the quarter. The increase in net interest income from higher average loans and the 25-basis point increase in the fed funds rate in mid-March was offset by two fewer days in the period compared to the fourth quarter.

The Company's net interest margin was 3.14% for the first quarter of 2022, down one basis point from 3.15% for the fourth quarter of 2021. The decrease is attributable to the aforementioned decline in PPP-related fees as the deployment of cash into loans and upward interest rate movements had a favorable impact on net interest margin in the first quarter of 2022 compared to the fourth quarter of 2021.  Please refer to the Q1 2022 Earnings Presentation available on our website for additional net interest margin change details and interest rate sensitivity information.

Credit QualityThe allowance for credit losses was $261.5 million, or 1.14% of loans and leases, as of March 31, 2022, compared to $261.2 million, or 1.16% of loans and leases, as of December 31, 2021.  The provision for credit losses of $4.8 million for the first quarter of 2022 compares to a recapture of provision of $0.7 million for the fourth quarter of 2021. The current quarter's provision reflects allowance requirements for new loan generation, loan mix changes, and changes between the December 2021 and March 2022 economic forecasts used in credit models. Please refer to the Q1 2022 Earnings Presentation available on our website for additional details related to the allowance for credit losses.

Net charge-offs decreased by three basis points to 0.10% of average loans and leases (annualized) for the first quarter of 2022 as net charge-off activity within the FinPac portfolio remained below its historical average for the third consecutive quarter. As of March 31, 2022, non-performing assets were 0.14% of total assets, compared to 0.17% as of December 31, 2021 and 0.19% as of March 31, 2021.

Non-interest IncomeNon-interest income was $80.0 million for the first quarter of 2022, down $2.8 million from the prior quarter. A higher net fair value gain related to cumulative fair value adjustments did not fully offset other declines, including lower swap and syndication revenue following outsized volume in the fourth quarter of 2021 and lower revenue from the origination and sale of mortgages.

As detailed in our segment and non-GAAP disclosures, non-interest income for the Core Banking segment includes a fair value loss of $16.7 million for the first 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 $3.4 million in the fourth quarter of 2021, and the $13.2 million decline in fair value change between periods is primarily captured in other income. Please refer to the Q1 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 $16.8 million for the first quarter of 2022, a decrease of $6.8 million from the prior quarter. This decline reflects a sequential quarter decrease of $222.1 million or 25.5% in for-sale mortgage origination volume given anticipated seasonal trends that were exacerbated by rising long-term interest rates.  Of the current quarter's mortgage production, 58% related to purchase activity, compared to 54% for the prior quarter and 37% for the same period of the prior year. A 12-basis point linked-quarter decrease in the mortgage banking gain on sale margin to 2.59% for the first quarter of 2022 reflects the negative impact from rising rates on the pipeline. Interest rate movements favorably impacted valuation of the MSR asset, resulting in a net write-up during the quarter of $34.8 million, which includes a $40.1 million fair value gain related to model inputs.

Over the next one-to-two quarters, we expect to put hedges in place to reduce the volatility of MSR fair value impacts on a net basis in future quarters. Additionally, we undertook structural changes in the mortgage banking segment in April, including a headcount reduction, to adjust our capacity and expense run rate to meet the origination volume we anticipate over the foreseeable future.

Non-interest ExpenseNon-interest expense was $182.4 million for the first quarter of 2022, down $17.3 million from the prior quarter level. The decrease is primarily due to a $4.3 million decline in salaries and employee benefits and a $12.9 million decrease in merger related expenses. The first quarter of 2022 included $2.3 million in merger-related expenses and $3.0 million in exit and disposal costs. Please refer to the Q1 2022 Earnings Presentation available on our website for additional quarterly expense change details.

CapitalAs of March 31, 2022, the Company's tangible book value per common share[2] decreased to $11.98, compared to $12.65 in the prior quarter and $12.10 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 income (AOCI) to $(183.8) million, compared to $1.8 million in the prior quarter and $38.1 million in the prior-year period. Excluding AOCI, tangible book2 increased to $12.83 at March 31, 2022, compared to $12.64 and $11.92 in 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 14.0% and its estimated tier 1 common to risk weighted assets ratio was 11.3% as of March 31, 2022. The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of March 31, 2022 are estimates, pending completion and filing of the Company's regulatory reports. 

Segment DisclosuresSegment disclosures on pages 14-15 of this press release provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.

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

Earnings Conference Call InformationThe Company will host its first quarter 2022 earnings conference call on April 21, 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 first quarter 2022 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: 9884055.  A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 9884055. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

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

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives, potential MSR hedging activity and the result of such activity, the impact of structural changes in our home lending division, and mortgage 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, 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

8

Financial Highlights

10

Loan & Lease Portfolio Balances and Mix

11

Deposit Balances, Mix, and Select Account Details

12

Credit Quality - Non-performing Assets

13

Credit Quality - Allowance for Credit Losses

13

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

15

Segments

16

GAAP to Non-GAAP Reconciliation

18

 

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)

Quarter Ended

% Change

(In thousands, except per share data)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq.

Quarter

Year over Year

Interest income:

Loans and leases

$     214,404

$     221,501

$     224,403

$     223,470

$     221,141

(3)%

(3)%

Interest and dividends on investments:

Taxable

18,725

16,566

16,102

14,619

13,112

13%

43%

Exempt from federal income tax

1,372

1,456

1,470

1,487

1,534

(6)%

(11)%

Dividends

86

102

213

405

598

(16)%

(86)%

Temporary investments and interest bearing deposits

1,353

1,229

1,237

774

624

10%

117%

Total interest income

235,940

240,854

243,425

240,755

237,009

(2)%

0%

Interest expense:

Deposits

3,916

4,357

5,100

7,016

10,678

(10)%

(63)%

Securities sold under agreement torepurchase and federal funds purchased

63

48

88

68

76

31%

(17)%

Borrowings

49

51

149

866

1,772

(4)%

(97)%

Junior subordinated debentures

3,149

3,019

3,014

3,042

3,052

4%

3%

Total interest expense

7,177

7,475

8,351

10,992

15,578

(4)%

(54)%

Net interest income

228,763

233,379

235,074

229,763

221,431

(2)%

3%

Provision (recapture) for credit losses

4,804

(736)

(18,919)

(22,996)

—

nm

nm

Non-interest income:

Service charges on deposits

11,583

11,188

10,941

10,310

9,647

4%

20%

Card-based fees

8,708

9,355

9,111

10,274

7,374

(7)%

18%

Brokerage revenue

11

31

31

1,135

3,915

(65)%

(100)%

Residential mortgage banking revenue, net

60,786

43,185

34,150

44,443

65,033

41%

(7)%

Gain on sale of debt securities, net

2

4

—

—

4

nm

nm

(Loss) gain on equity securities, net

(2,661)

(466)

(343)

4

(706)

nm

277%

Gain on loan and lease sales, net

2,337

4,816

4,208

5,318

1,373

(51)%

70%

BOLI income

2,087

2,101

2,038

2,092

2,071

(1)%

1%

Other (loss) income

(2,884)

12,524

13,569

17,499

20,089

(123)%

(114)%

Total non-interest income

79,969

82,738

73,705

91,075

108,800

(3)%

(26)%

Non-interest expense:

Salaries and employee benefits

113,138

117,477

117,636

121,573

124,134

(4)%

(9)%

Occupancy and equipment, net

34,829

34,310

33,944

34,657

34,635

2%

1%

Intangible amortization

1,025

1,130

1,130

1,130

1,130

(9)%

(9)%

FDIC assessments

4,516

2,896

2,136

1,607

2,599

56%

74%

Merger related expenses

2,278

15,183

—

—

—

0%

nm

Other expenses

26,644

28,715

28,907

30,433

25,094

(7)%

6%

Total non-interest expense

182,430

199,711

183,753

189,400

187,592

(9)%

(3)%

Income before provision for income taxes

121,498

117,142

143,945

154,434

142,639

4%

(15)%

Provision for income taxes

30,341

28,788

35,879

38,291

34,902

5%

(13)%

Net income

$       91,157

$       88,354

$     108,066

$     116,143

$     107,737

3%

(15)%

Weighted average basic shares outstanding

216,782

216,624

218,416

220,593

220,367

0 %

(2)%

Weighted average diluted shares outstanding

217,392

217,356

218,978

221,022

220,891

0 %

(2) %

Earnings per common share – basic

$           0.42

$           0.41

$           0.49

$           0.53

$           0.49

2%

(14)%

Earnings per common share – diluted

$           0.42

$           0.41

$           0.49

$           0.53

$           0.49

2%

(14)%

nm = not meaningful

 

Umpqua Holdings Corporation

Consolidated Balance Sheets

(Unaudited)

% Change

(In thousands, except per share data)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq.

Quarter

Year over Year

Assets:

Cash and due from banks

$     307,144

$     222,015

$     395,555

$     397,526

$     379,361

38%

(19)%

Interest bearing cash and temporary investments

2,358,292

2,539,606

3,349,034

2,688,285

2,861,820

(7)%

(18)%

Investment securities:

Equity and other, at fair value

78,966

81,214

81,575

82,099

82,771

(3)%

(5)%

Available for sale, at fair value

3,638,080

3,870,435

3,723,171

3,473,950

3,167,825

(6)%

15%

Held to maturity, at amortized cost

2,700

2,744

2,795

2,876

2,954

(2)%

(9)%

Loans held for sale

309,946

353,105

352,466

429,052

376,481

(12)%

(18)%

Loans and leases

22,975,761

22,553,180

21,969,940

22,143,739

22,160,860

2%

4%

Allowance for credit losses on loans and leases

(248,564)

(248,412)

(257,560)

(279,887)

(311,283)

0%

(20)%

Net loans and leases

22,727,197

22,304,768

21,712,380

21,863,852

21,849,577

2%

4%

Restricted equity securities

10,889

10,916

10,946

15,247

22,057

0%

(51)%

Premises and equipment, net

167,369

171,125

172,624

172,546

176,571

(2)%

(5)%

Operating lease right-of-use assets

87,333

82,366

88,379

95,030

100,643

6%

(13)%

Goodwill

—

—

—

—

2,715

nm

(100)%

Other intangible assets, net

7,815

8,840

9,970

11,100

12,230

(12)%

(36)%

Residential mortgage servicing rights, at fair value

165,807

123,615

105,834

102,699

100,413

34%

65%

Bank owned life insurance

328,040

327,745

325,646

324,998

322,867

0%

2%

Deferred tax asset, net

39,051

—

8,402

—

10,905

nm

nm

Other assets

408,497

542,442

552,702

625,705

567,490

(25)%

(28)%

Total assets

$ 30,637,126

$ 30,640,936

$ 30,891,479

$ 30,284,965

$ 30,036,680

0%

2%

Liabilities:

Deposits

$ 26,699,587

$ 26,594,685

$ 26,908,397

$ 26,153,553

$ 25,886,833

0%

3%

Securities sold under agreements to repurchase

499,539

492,247

467,760

480,302

420,402

1%

19%

Borrowings

6,290

6,329

6,367

111,405

281,444

(1)%

(98)%

Junior subordinated debentures, at fair value

305,719

293,081

299,508

287,723

281,580

4%

9%

Junior subordinated debentures, at amortized cost

87,984

88,041

88,098

88,155

88,212

0%

0%

Operating lease liabilities

101,732

95,427

100,557

106,195

109,014

7%

(7)%

Deferred tax liability, net

—

4,353

—

2,497

—

(100)%

nm

Other liabilities

328,677

317,503

298,413

288,819

287,326

4%

14%

Total liabilities

28,029,528

27,891,666

28,169,100

27,518,649

27,354,811

0%

2%

Shareholders' equity:

Common stock

3,443,266

3,444,849

3,442,085

3,517,641

3,515,248

0%

(2)%

Accumulated deficit

(651,912)

(697,338)

(739,915)

(801,954)

(871,511)

(7)%

(25)%

Accumulated other comprehensive (loss) income

(183,756)

1,759

20,209

50,629

38,132

nm

nm

Total shareholders' equity

2,607,598

2,749,270

2,722,379

2,766,316

2,681,869

(5)%

(3)%

Total liabilities and shareholders' equity

$ 30,637,126

$ 30,640,936

$ 30,891,479

$ 30,284,965

$ 30,036,680

0%

2%

Common shares outstanding at period end

216,967

216,626

216,622

220,626

220,491

0 %

(2) %

Book value per common share

$         12.02

$         12.69

$         12.57

$         12.54

$         12.16

(5)%

(1)%

Tangible book value per common share (1)

$         11.98

$         12.65

$         12.52

$         12.49

$         12.10

(5)%

(1)%

Tangible equity - common (1)

$  2,599,783

$  2,740,430

$  2,712,409

$  2,755,216

$  2,666,924

(5)%

(3)%

Tangible common equity to tangible assets (1)

8.49%

8.95%

8.78%

9.10%

8.88%

(0.46)

(0.39)

nm = not meaningful

(1) See GAAP to Non-GAAP Reconciliation.

 

Umpqua Holdings Corporation

Financial Highlights

(Unaudited)

Quarter Ended

% Change

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

Year overYear

Per Common Share Data:

Dividends

$    0.21

$    0.21

$    0.21

$    0.21

$    0.21

0%

0%

Book value

$  12.02

$  12.69

$  12.57

$  12.54

$  12.16

(5)%

(1)%

Tangible book value (1)

$  11.98

$  12.65

$  12.52

$  12.49

$  12.10

(5)%

(1)%

Tangible book value, ex accumulated other comprehensive income (1)

$  12.83

$  12.64

$  12.43

$  12.26

$  11.92

2%

8%

Performance Ratios:

Efficiency ratio

59.02%

63.10%

59.44%

58.96%

56.74%

(4.08)

2.28

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

1.67%

1.50%

1.62%

1.75%

1.97%

0.17

(0.30)

Return on average assets (ROAA)

1.21%

1.13%

1.40%

1.54%

1.49%

0.08

(0.28)

Return on average common equity

13.62%

12.90%

15.82%

17.25%

16.33%

0.72

(2.71)

Return on average tangible common equity (1)

13.66%

12.94%

15.88%

17.33%

16.43%

0.72

(2.77)

Performance Ratios - Operating: (1)

Operating efficiency ratio (1)

62.02%

59.61%

58.94%

56.89%

57.87%

2.41

4.15

Operating PPNR return on average assets (1)

1.43%

1.58%

1.62%

1.86%

1.87%

(0.15)

(0.44)

Operating return on average assets (1)

1.03%

1.23%

1.40%

1.63%

1.41%

(0.20)

(0.38)

Operating return on average common equity (1)

11.58%

13.98%

15.82%

18.16%

15.50%

(2.40)

(3.92)

Operating return on average tangible common equity (1)

11.62%

14.03%

15.88%

18.24%

15.59%

(2.41)

(3.97)

Average Balance Sheet Yields, Rates, & Ratios:

Yield on loans and leases

3.79%

3.94%

4.02%

3.99%

4.02%

(0.15)

(0.23)

Yield on earning assets (2)

3.24%

3.25%

3.32%

3.35%

3.41%

(0.01)

(0.17)

Cost of interest bearing deposits

0.10%

0.11%

0.13%

0.18%

0.29%

(0.01)

(0.19)

Cost of interest bearing liabilities

0.18%

0.18%

0.20%

0.27%

0.38%

—

(0.20)

Cost of total deposits

0.06%

0.06%

0.08%

0.11%

0.17%

—

(0.11)

Cost of total funding (3)

0.11%

0.11%

0.12%

0.16%

0.24%

—

(0.13)

Net interest margin (2)

3.14%

3.15%

3.21%

3.20%

3.18%

(0.01)

(0.04)

Average interest bearing cash / Average interest earning assets

8.92%

10.78%

11.03%

9.84%

8.84%

(1.86)

0.08

Average loans and leases / Average interest earning assets

76.85%

74.70%

74.78%

76.52%

77.26%

2.15

(0.41)

Average loans and leases / Average total deposits

84.77%

82.12%

82.07%

84.59%

86.55%

2.65

(1.78)

Average non-interest bearing deposits / Average total deposits

41.35%

41.69%

41.14%

40.61%

39.49%

(0.34)

1.86

Average total deposits / Average total funding (3)

96.82%

96.84%

96.72%

96.21%

95.15%

(0.02)

1.67

Select Credit & Capital Ratios:

Non-performing loans and leases to total loans and leases

0.18%

0.23%

0.24%

0.22%

0.25%

(0.05)

(0.07)

Non-performing assets to total assets

0.14%

0.17%

0.17%

0.17%

0.19%

(0.03)

(0.05)

Allowance for credit losses to loans and leases

1.14%

1.16%

1.23%

1.33%

1.49%

(0.02)

(0.35)

Total risk-based capital ratio (4)

14.0%

14.3%

14.9%

15.4%

15.8%

(0.30)

(1.80)

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

11.3%

11.6%

12.0%

12.4%

12.6%

(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 Holdings Corporation

Loan & Lease Portfolio Balances and Mix

(Unaudited)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

% Change

 (Dollars in thousands)

Amount

Amount

Amount

Amount

Amount

Seq.Quarter

YearoverYear

Loans and leases:

Commercial real estate:

Non-owner occupied term, net

$  3,884,784

$  3,786,887

$  3,561,764

$  3,580,386

$  3,455,773

3%

12%

Owner occupied term, net

2,327,899

2,332,422

2,330,338

2,398,326

2,358,169

0%

(1)%

Multifamily, net

4,323,633

4,051,202

3,813,024

3,553,704

3,421,320

7%

26%

Construction & development, net

940,286

890,338

882,778

857,866

876,297

6%

7%

Residential development, net

195,308

206,990

177,148

193,904

190,841

(6)%

2%

Commercial:

Term, net (1)

2,772,206

3,008,473

3,159,466

3,748,269

4,350,763

(8)%

(36)%

Lines of credit & other, net

871,483

910,733

930,350

908,518

825,162

(4)%

6%

Leases & equipment finance, net

1,484,252

1,467,676

1,457,248

1,437,372

1,420,977

1%

4%

Residential:

Mortgage, net

4,748,266

4,517,266

4,330,860

4,145,432

3,958,644

5%

20%

Home equity loans & lines, net

1,250,702

1,197,170

1,133,823

1,118,278

1,097,168

4%

14%

   Consumer & other, net

176,942

184,023

193,141

201,684

205,746

(4)%

(14)%

Total loans and leases, net of deferred fees and costs

$ 22,975,761

$ 22,553,180

$ 21,969,940

$ 22,143,739

$ 22,160,860

2%

4%

(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

$172,790

$     380,440

$     726,737

$  1,380,212

$  2,047,793

(55)%

(92)%

Loan and leases mix:

Commercial real estate:

   Non-owner occupied term, net

17%

17%

16%

16%

15%

   Owner occupied term, net

10%

10%

11%

11%

11%

   Multifamily, net

19%

18%

17%

16%

15%

Construction & development, net

4%

4%

4%

4%

4%

Residential development, net

1%

1%

1%

1%

1%

Commercial:

Term, net

12%

13%

14%

17%

20%

Lines of credit & other, net

4%

4%

4%

4%

4%

Leases & equipment finance, net

6%

7%

7%

6%

6%

Residential:

Mortgage, net

21%

20%

20%

19%

18%

Home equity loans & lines, net

5%

5%

5%

5%

5%

   Consumer & other, net

1%

1%

1%

1%

1%

Total

100%

100%

100%

100%

100%

 

Umpqua Holdings Corporation

Deposit Balances, Mix, and Select Account Details

(Unaudited)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

% Change

 (Dollars in thousands)

Amount

Amount

Amount

Amount

Amount

Seq.Quarter

Year over Year

Deposits:

Demand, non-interest bearing

$ 11,058,251

$ 11,023,724

$ 11,121,127

$ 10,718,921

$ 10,500,482

0%

5%

Demand, interest bearing

3,955,329

3,774,937

3,758,019

3,466,251

3,244,624

5%

22%

Money market

7,572,581

7,611,718

7,780,442

7,559,621

7,554,798

(1)%

0%

Savings

2,429,073

2,375,723

2,325,929

2,221,524

2,109,211

2%

15%

Time

1,684,353

1,808,583

1,922,880

2,187,236

2,477,718

(7)%

(32)%

Total

$ 26,699,587

$ 26,594,685

$ 26,908,397

$ 26,153,553

$ 25,886,833

0%

3%

Total core deposits (1)

$ 26,140,993

$ 25,964,358

$ 26,029,814

$ 25,122,851

$ 24,740,621

1%

6%

Deposit mix:

Demand, non-interest bearing

42%

41%

41%

41%

41%

Demand, interest bearing

15%

14%

14%

13%

12%

Money market

28%

29%

29%

29%

29%

Savings

9%

9%

9%

9%

8%

Time

6%

7%

7%

8%

10%

Total

100%

100%

100%

100%

100%

Number of open accounts:

Demand, non-interest bearing

428,915

428,181

425,337

424,626

422,792

Demand, interest bearing

63,800

66,010

70,749

71,411

72,156

Money market

56,783

57,222

57,794

58,289

58,409

Savings

160,267

160,449

161,698

161,902

161,432

Time

34,127

35,665

37,172

39,560

43,637

Total

743,892

747,527

752,750

755,788

758,426

Average balance per account:

Demand, non-interest bearing

$           25.8

$           25.7

$           26.1

$           25.2

$           24.8

Demand, interest bearing

62.0

57.2

53.1

48.5

45.0

Money market

133.4

133.0

134.6

129.7

129.3

Savings

15.2

14.8

14.4

13.7

13.1

Time

49.4

50.7

51.7

55.3

56.8

Total

$           35.9

$           35.6

$           35.7

$           34.6

$           34.1

(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)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq.Quarter

Yearover Year

Non-performing assets:

Loans and leases on non-accrual status:

Commercial real estate, net

$      5,950

$      5,767

$      5,952

$      9,034

$      9,432

3%

(37)%

Commercial, net

12,415

13,098

18,200

11,639

19,784

(5)%

(37)%

Residential, net

—

—

—

—

—

nm

nm

Consumer & other, net

—

—

—

—

—

nm

nm

Total Loans and leases on non-accrual status

18,365

18,865

24,152

20,673

29,216

(3)%

(37)%

Loans and leases past due 90+ days and accruing:

Commercial real estate, net

1

1

1

1

1

0%

0%

Commercial, net

8

4,160

2,454

2,255

756

(100)%

(99)%

Residential, net

23,162

27,981

24,919

26,648

24,524

(17)%

(6)%

Consumer & other, net

111

194

116

240

331

(43)%

(66)%

Total Loans and leases past due 90+ days and accruing

23,282

32,336

27,490

29,144

25,612

(28)%

(9)%

Total non-performing loans and leases

41,647

51,201

51,642

49,817

54,828

(19)%

(24)%

Other real estate owned

1,868

1,868

1,868

181

1,405

0%

33%

Total non-performing assets

$    43,515

$    53,069

$    53,510

$    49,998

$    56,233

(18)%

(23)%

Performing restructured loans and leases

$      8,405

$      6,694

$      9,849

$    13,072

$      9,921

26%

(15)%

Loans and leases past due 31-89 days

$    42,409

$    31,680

$    41,326

$    30,646

$    51,120

34%

(17)%

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

0.18%

0.14%

0.19%

0.14%

0.23%

Non-performing loans and leases to total loans and leases

0.18%

0.23%

0.24%

0.22%

0.25%

Non-performing assets to total assets

0.14%

0.17%

0.17%

0.17%

0.19%

nm = not meaningful

 

Umpqua Holdings Corporation

Credit Quality – Allowance for Credit Losses

(Unaudited)

Quarter Ended

% Change

(Dollars in thousands)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq.Quarter

YearoverYear

Allowance for credit losses on loans andleases (ACLLL)

Balance, beginning of period

$ 248,412

$ 257,560

$ 279,887

$ 311,283

$ 328,401

(4)%

(24)%

Provision (recapture) for credit losses on loans and leases

5,696

(1,751)

(16,132)

(17,775)

526

(425)%

983%

Charge-offs

Commercial real estate, net

—

(58)

(916)

(129)

(41)

(100)%

(100)%

Commercial, net

(7,858)

(10,197)

(8,521)

(16,093)

(19,614)

(23)%

(60)%

Residential, net

(167)

—

—

—

(70)

nm

139%

Consumer & other, net

(885)

(675)

(936)

(857)

(1,190)

31%

(26)%

Total charge-offs

(8,910)

(10,930)

(10,373)

(17,079)

(20,915)

(18)%

(57)%

Recoveries

Commercial real estate, net

25

56

120

89

380

(55)%

(93)%

Commercial, net

2,545

2,585

3,346

2,681

2,091

(2)%

22%

Residential, net

173

326

281

209

108

(47)%

60%

Consumer & other, net

623

566

431

479

692

10%

(10)%

Total recoveries

3,366

3,533

4,178

3,458

3,271

(5)%

3%

Net charge-offs

Commercial real estate, net

25

(2)

(796)

(40)

339

nm

(93)%

Commercial, net

(5,313)

(7,612)

(5,175)

(13,412)

(17,523)

(30)%

(70)%

Residential, net

6

326

281

209

38

(98)%

(84)%

Consumer & other, net

(262)

(109)

(505)

(378)

(498)

140%

(47)%

Total net charge-offs

(5,544)

(7,397)

(6,195)

(13,621)

(17,644)

(25)%

(69)%

Balance, end of period

$ 248,564

$ 248,412

$ 257,560

$ 279,887

$ 311,283

0%

(20)%

Reserve for unfunded commitments

Balance, beginning of period

$   12,767

$   11,752

$   14,539

$   19,760

$   20,286

9%

(37)%

Provision (recapture) for credit losses on unfunded commitments

151

1,015

(2,787)

(5,221)

(526)

(85)%

(129)%

Balance, end of period

12,918

12,767

11,752

14,539

19,760

1%

(35)%

Total Allowance for credit losses (ACL)

$ 261,482

$ 261,179

$ 269,312

$ 294,426

$ 331,043

0%

(21)%

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

0.10%

0.13%

0.11%

0.25%

0.33%

Recoveries to gross charge-offs

37.78%

32.32%

40.28%

20.25%

15.64%

ACLLL to loans and leases

1.08%

1.10%

1.17%

1.26%

1.40%

ACL to loans and leases

1.14%

1.16%

1.23%

1.33%

1.49%

nm = not meaningful

 

Umpqua Holdings CorporationConsolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

(Unaudited)

Quarter Ended

March 31, 2022

December 31, 2021

March 31, 2021

 (Dollars in thousands)

Average Balance

Interest Income or

Expense

Average Yields or Rates

Average Balance

Interest IncomeorExpense

Average

Yieldsor Rates

AverageBalance

InterestIncomeor Expense

Average Yields or Rates

INTEREST-EARNING ASSETS:

Loans held for sale

$     286,307

$    2,262

3.16%

$     366,043

$    2,907

3.18%

$     703,557

$    4,845

2.75%

Loans and leases (1)

22,566,109

212,142

3.79%

22,098,818

218,594

3.94%

21,692,639

216,296

4.02%

Taxable securities

3,659,145

18,811

2.06%

3,681,650

16,668

1.81%

2,945,896

13,710

1.86%

Non-taxable securities (2)

234,186

1,726

2.95%

247,183

1,831

2.96%

252,741

1,915

3.03%

Temporary investments and interest-bearing cash

2,618,528

1,353

0.21%

3,190,380

1,229

0.15%

2,483,451

624

0.10%

Total interest-earning assets

29,364,275

$ 236,294

3.24%

29,584,074

$ 241,229

3.25%

28,078,284

$ 237,390

3.41%

Other assets

1,233,138

1,302,304

1,314,206

Total assets

$ 30,597,413

$ 30,886,378

$ 29,392,490

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$  3,812,173

$       498

0.05%

$  3,765,212

$       524

0.06%

$  3,125,398

$       414

0.05%

Money market deposits

7,640,810

1,408

0.07%

7,717,844

1,448

0.07%

7,360,512

1,491

0.08%

Savings deposits

2,405,958

205

0.03%

2,342,865

206

0.03%

1,998,927

163

0.03%

Time deposits

1,753,880

1,805

0.42%

1,864,949

2,179

0.46%

2,681,361

8,610

1.30%

Total interest-bearing deposits

15,612,821

3,916

0.10%

15,690,870

4,357

0.11%

15,166,198

10,678

0.29%

Repurchase agreements and federal funds purchased

486,542

63

0.05%

484,891

48

0.04%

395,946

76

0.08%

Borrowings

6,313

49

3.16%

6,353

51

3.19%

539,077

1,772

1.33%

Junior subordinated debentures

380,985

3,149

3.35%

387,471

3,019

3.09%

343,473

3,052

3.60%

Total interest-bearing liabilities

16,486,661

$    7,177

0.18%

16,569,585

$    7,475

0.18%

16,444,694

$  15,578

0.38%

Non-interest-bearing deposits

11,007,034

11,219,766

9,897,749

Other liabilities

388,659

379,274

375,176

Total liabilities

27,882,354

28,168,625

26,717,619

Common equity

2,715,059

2,717,753

2,674,871

Total liabilities and shareholders' equity

$ 30,597,413

$ 30,886,378

$ 29,392,490

NET INTEREST INCOME

$ 229,117

$ 233,754

$ 221,812

NET INTEREST SPREAD

3.06%

3.07%

3.03%

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

3.14%

3.15%

3.18%

(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 $354,000 for the three months ended March 31, 2022, as compared to $375,000 for December 31, 2021 and $381,000 for March 31, 2021. 

 

Umpqua Holdings CorporationSegments

(Unaudited)

Core Banking

Quarter Ended

% Change

(Dollars in thousands)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

YearoverYear

Net interest income

$     227,087

$     231,250

$     232,348

$     226,915

$     217,574

(2)%

4%

Provision (recapture) for credit losses

4,804

(736)

(18,919)

(22,996)

—

nm

nm

Non-interest income

Gain on sale of debt securities, net

2

4

—

—

4

(50)%

(50)%

(Loss) gain on equity securities, net

(2,661)

(466)

(343)

4

(706)

471%

277%

Gain (loss) on swap derivatives, net

7,047

(303)

1,429

(4,481)

11,750

nm

(40)%

Change in fair value of certain loans held for investment

(21,049)

(2,672)

3,432

2,782

(510)

nm

nm

Non-interest income (excluding above items)

35,650

42,812

34,849

48,151

32,913

(17)%

8%

Total non-interest income

18,989

39,375

39,367

46,456

43,451

(52)%

(56)%

Non-interest expense

Merger related expenses

2,278

15,183

—

—

—

(85)%

nm

Exit and disposal costs

3,033

3,022

3,813

4,728

1,200

0%

153%

Non-interest expense (excluding above items)

148,423

150,587

146,931

146,877

145,161

(1)%

2%

Allocated expenses, net (1)

3,735

4,314

3,680

970

(790)

(13)%

nm

Total non-interest expense

157,469

173,106

154,424

152,575

145,571

(9)%

8%

Income before income taxes

83,803

98,255

136,210

143,792

115,454

(15)%

(27)%

Provision for income taxes

20,917

24,067

33,945

35,630

28,106

(13)%

(26)%

Net income

$       62,886

$       74,188

$     102,265

$     108,162

$       87,348

(15)%

(28)%

Effective Tax Rate

25%

24%

25%

25%

24%

Efficiency Ratio

64%

64%

57%

56%

56%

Total assets

$ 30,153,079

$ 30,155,058

$ 30,419,108

$ 29,720,182

$ 29,529,769

0%

2%

Total loans and leases

$ 22,975,761

$ 22,553,180

$ 21,969,940

$ 22,143,739

$ 22,160,860

2%

4%

Total deposits

$ 26,479,078

$ 26,370,568

$ 26,510,938

$ 25,820,776

$ 25,425,339

0%

4%

Key Rates, end of period:

10 year CMT

2.32%

1.52%

1.52%

1.45%

1.74%

FHLMC 30 year fixed

4.67%

3.11%

3.01%

2.98%

3.18%

nm = not meaningful

(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.

Umpqua Holdings Corporation

Segments - Continued

(Unaudited)

Mortgage Banking

Quarter Ended

% Change

(Dollars in thousands)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

Year over Year

Net interest income

$         1,676

$         2,129

$         2,726

$         2,848

$         3,857

(21)%

(57)%

Provision for credit losses

—

—

—

—

—

nm

nm

Non-interest income

Residential mortgage banking revenue:

Origination and sale

16,844

23,624

30,293

41,367

62,505

(29)%

(73)%

Servicing

9,140

9,457

9,172

9,120

9,087

(3)%

1%

Change in fair value of MSR asset:

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

(5,347)

(5,311)

(4,681)

(4,366)

(4,545)

1%

18%

Changes due to valuation inputs or assumptions

40,149

15,415

(634)

(1,678)

(2,014)

160%

nm

Non-interest income (excluding above items)

194

178

188

176

316

9%

(39)%

Total non-interest income

60,980

43,363

34,338

44,619

65,349

41%

(7)%

Non-interest expense

Non-interest expense

28,696

30,919

33,009

37,795

41,231

(7)%

(30)%

Allocated expenses, net (1)

(3,735)

(4,314)

(3,680)

(970)

790

(13)%

nm

Total non-interest expense

24,961

26,605

29,329

36,825

42,021

(6)%

(41)%

Income before income taxes

37,695

18,887

7,735

10,642

27,185

100%

39%

Provision for income taxes

9,424

4,721

1,934

2,661

6,796

100%

39%

Net income

$       28,271

$       14,166

$         5,801

$         7,981

$       20,389

100%

39%

Effective Tax Rate

25%

25%

25%

25%

25%

Efficiency Ratio

40%

58%

79%

78%

61%

Total assets

$     484,047

$     485,878

$     472,371

$     564,783

$     506,911

0%

(5)%

Loans held for sale

$     309,946

$     353,105

$     352,466

$     429,052

$     376,481

(12)%

(18)%

Total deposits

$     220,509

$     224,117

$     397,459

$     332,777

$     461,494

(2)%

(52)%

LHFS Production Statistics:

Closed loan volume for-sale

$     649,122

$     871,268

$     987,281

$  1,253,023

$  1,635,532

(25)%

(60)%

Gain on sale margin

2.59%

2.71%

3.07%

3.30%

3.82%

Direct LHFS expense

$       14,296

$       18,150

$       19,958

$       25,459

$       31,151

(21)%

(54)%

Direct LHFS expenses as % of volume

2.20%

2.08%

2.02%

2.03%

1.90%

MSR Statistics:

Residential mortgage loans serviced for others

$ 12,810,574

$ 12,755,671

$ 12,853,291

$ 12,897,032

$ 13,030,467

0%

(2)%

MSR, net

$     165,807

$     123,615

$     105,834

$     102,699

$     100,413

34%

65%

MSR as % of serviced portfolio

1.29%

0.97%

0.82%

0.80%

0.77%

Key Rates, end of period:

10 year CMT

2.32%

1.52%

1.52%

1.45%

1.74%

FHLMC 30 year fixed

4.67%

3.11%

3.01%

2.98%

3.18%

nm = not meaningful

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

 

Non-GAAP Financial Measures

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

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation

(Unaudited)

Quarter Ended

% Change

(Dollars in thousands, except per share data)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

Year over Year

Total shareholders' equity

a

$ 2,607,598

$ 2,749,270

$ 2,722,379

$ 2,766,316

$ 2,681,869

(5)%

(3)%

Less: Goodwill

—

—

—

—

2,715

nm

(100)%

Less: Other intangible assets, net

7,815

8,840

9,970

11,100

12,230

(12)%

(36)%

Tangible common shareholders' equity

b

$ 2,599,783

$ 2,740,430

$ 2,712,409

$ 2,755,216

$ 2,666,924

(5)%

(3)%

Less: Accumulated other comprehensive income (AOCI)

$ (183,756)

1,759

20,209

50,629

38,132

nm

(582)%

Tangible common shareholders' equity, ex AOCI

c

$ 2,783,539

$ 2,738,671

$ 2,692,200

$ 2,704,587

$ 2,628,792

2%

6%

Total assets

d

$ 30,637,126

$ 30,640,936

$ 30,891,479

$ 30,284,965

$ 30,036,680

0%

2%

Less: Goodwill

—

—

—

—

2,715

nm

(100)%

Less: Other intangible assets, net

7,815

8,840

9,970

11,100

12,230

(12)%

(36)%

Tangible assets

e

$ 30,629,311

$ 30,632,096

$ 30,881,509

$ 30,273,865

$ 30,021,735

0%

2%

Common shares outstanding at period end

f

216,967

216,626

216,622

220,626

220,491

0%

(2)%

Total shareholders' equity to total assets ratio

a / d

8.51%

8.97%

8.81%

9.13%

8.93%

(0.46)

(0.42)

Tangible common equity ratio

b / e

8.49%

8.95%

8.78%

9.10%

8.88%

(0.46)

(0.39)

Tangible common equity ratio, ex AOCI

c / e

9.09%

8.94%

8.72%

8.93%

8.76%

0.15

0.33

Book value per common share

a / f

$     12.02

$     12.69

$     12.57

$     12.54

$     12.16

(5)%

(1)%

Tangible book value per common share

b / f

$     11.98

$     12.65

$     12.52

$     12.49

$     12.10

(5)%

(1)%

Tangible book value per common share, ex AOCI

c / f

$     12.83

$     12.64

$     12.43

$     12.26

$     11.92

2%

8%

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Consolidated

Quarter Ended

% Change

(Dollars in thousands)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

Year overYear

Non-Interest Income Adjustments

Gain on sale of debt securities, net

$              2

$              4

$            —

$            —

$              4

(50)%

(50)%

(Loss) gain on equity securities, net

(2,661)

(466)

(343)

4

(706)

471%

277%

Gain (loss) on swap derivatives

7,047

(303)

1,429

(4,481)

11,750

nm

(40)%

Change in fair value of certain loans held for investment

(21,049)

(2,672)

3,432

2,782

(510)

nm

nm

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

40,149

15,415

(634)

(1,678)

(2,014)

160%

nm

Total non-interest income adjustments

a

$     23,488

$     11,978

$       3,884

$      (3,373)

$       8,524

96%

176%

Non-Interest Expense Adjustments

Merger related expenses

$       2,278

$     15,183

$            —

$            —

$            —

(85)%

nm

Exit and disposal costs

3,033

3,022

3,813

4,728

1,200

0%

153%

Total non-interest expense adjustments

b

$       5,311

$     18,205

$       3,813

$       4,728

$       1,200

(71)%

343%

Net interest income (1)

c

$   229,117

$   233,754

$   235,452

$   230,140

$   221,812

(2)%

3%

Non-interest income (GAAP)

d

$     79,969

$     82,738

$     73,705

$     91,075

$   108,800

(3)%

(26)%

Less: Non-interest income adjustments

a

(23,488)

(11,978)

(3,884)

3,373

(8,524)

96%

176%

Operating non-interest income (non-GAAP)

e

$     56,481

$     70,760

$     69,821

$     94,448

$   100,276

(20)%

(44)%

Revenue (GAAP) (1)

f=c+d

$   309,086

$   316,492

$   309,157

$   321,215

$   330,612

(2)%

(7)%

Operating revenue (non-GAAP)  (1)

g=c+e

$   285,598

$   304,514

$   305,273

$   324,588

$   322,088

(6)%

(11)%

Non-interest expense (GAAP)

h

$   182,430

$   199,711

$   183,753

$   189,400

$   187,592

(9)%

(3)%

Less: Non-interest expense adjustments

b

(5,311)

(18,205)

(3,813)

(4,728)

(1,200)

(71)%

343%

Operating non-interest expense (non-GAAP)

i

$   177,119

$   181,506

$   179,940

$   184,672

$   186,392

(2)%

(5)%

Net income (GAAP)

j

$     91,157

$     88,354

$   108,066

$   116,143

$   107,737

3%

(15)%

Provision for income taxes

30,341

28,788

35,879

38,291

34,902

5%

(13)%

Income before provision for income taxes

121,498

117,142

143,945

154,434

142,639

4%

(15)%

Provision (recapture) for credit losses

4,804

(736)

(18,919)

(22,996)

—

nm

nm

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

k

126,302

116,406

125,026

131,438

142,639

9%

(11)%

Less: Non-interest income adjustments

a

(23,488)

(11,978)

(3,884)

3,373

(8,524)

96%

176%

Add: Non-interest expense adjustments

b

5,311

18,205

3,813

4,728

1,200

(71)%

343%

Operating PPNR (non-GAAP)

l

$   108,125

$   122,633

$   124,955

$   139,539

$   135,315

(12)%

(20)%

Net income (GAAP)

j

$     91,157

$     88,354

$   108,066

$   116,143

$   107,737

3%

(15)%

Less: Non-interest income adjustments

a

(23,488)

(11,978)

(3,884)

3,373

(8,524)

96%

176%

Add: Non-interest expense adjustments

b

5,311

18,205

3,813

4,728

1,200

(71)%

343%

Tax effect of adjustments

4,576

1,190

18

(2,025)

1,831

285%

150%

Operating net income (non-GAAP)

m

$     77,556

$     95,771

$   108,013

$   122,219

$   102,244

(19)%

(24)%

nm = not meaningful

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

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Consolidated

Quarter Ended

% Change

(Dollars in thousands, except per share data)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

Year over Year

Average assets

n

$ 30,597,413

$ 30,886,378

$ 30,614,374

$ 30,156,017

$ 29,392,490

(1)%

4%

Less: Average goodwill and other intangible assets, net

8,407

9,491

10,609

12,615

15,598

(11)%

(46)%

Average tangible assets

o

$ 30,589,006

$ 30,876,887

$ 30,603,765

$ 30,143,402

$ 29,376,892

(1)%

4%

Average common shareholders' equity

p

$ 2,715,059

$ 2,717,753

$ 2,709,641

$ 2,700,010

$ 2,674,871

0%

2%

Less: Average goodwill and other intangible assets, net

8,407

9,491

10,609

12,615

15,598

(11)%

(46)%

Average tangible common equity

q

$ 2,706,652

$ 2,708,262

$ 2,699,032

$ 2,687,395

$ 2,659,273

0%

2%

Weighted average basic shares outstanding

r

216,782

216,624

218,416

220,593

220,367

0%

(2)%

Weighted average diluted shares outstanding

s

217,392

217,356

218,978

221,022

220,891

0%

(2)%

Select Per-Share & Performance Metrics

Earnings-per-share - basic

j / r

$      0.42

$      0.41

$      0.49

$      0.53

$      0.49

2%

(14)%

Earnings-per-share - diluted

j / s

$      0.42

$      0.41

$      0.49

$      0.53

$      0.49

2%

(14)%

Efficiency ratio

h / f

59.02%

63.10%

59.44%

58.96%

56.74%

(4.08)

2.28

PPNR return on average assets

k / n

1.67%

1.50%

1.62%

1.75%

1.97%

0.17

(0.30)

Return on average assets

j / n

1.21%

1.13%

1.40%

1.54%

1.49%

0.08

(0.28)

Return on average tangible assets

j / o

1.21%

1.14%

1.40%

1.55%

1.49%

0.07

(0.28)

Return on average common equity

j / p

13.62%

12.90%

15.82%

17.25%

16.33%

0.72

(2.71)

Return on average tangible common equity

j / q

13.66%

12.94%

15.88%

17.33%

16.43%

0.72

(2.77)

Operating Per-Share & Performance Metrics

Operating earnings-per-share - basic

m / r

$      0.36

$      0.44

$      0.49

$      0.55

$      0.46

(18)%

(22)%

Operating earnings-per-share - diluted

m / s

$      0.36

$      0.44

$      0.49

$      0.55

$      0.46

(18)%

(22)%

Operating efficiency ratio

i / g

62.02%

59.61%

58.94%

56.89%

57.87%

2.41

4.15

Operating PPNR return on average assets

l / n

1.43%

1.58%

1.62%

1.86%

1.87%

(0.15)

(0.44)

Operating return on average assets

m / n

1.03%

1.23%

1.40%

1.63%

1.41%

(0.20)

(0.38)

Operating return on average tangible assets

m / o

1.03%

1.23%

1.40%

1.63%

1.41%

(0.20)

(0.38)

Operating return on average common equity

m / p

11.58%

13.98%

15.82%

18.16%

15.50%

(2.40)

(3.92)

Operating return on average tangible common equity

m / q

11.62%

14.03%

15.88%

18.24%

15.59%

(2.41)

(3.97)

 

Umpqua Holdings Corporation

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)

Core Banking

Quarter Ended

% Change

(Dollars in thousands)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

YearoverYear

Non-Interest Income Adjustments

Gain on sale of debt securities, net

$         2

$         4

$       —

$         —

$           4

(50)%

(50)%

(Loss) gain on equity securities, net

(2,661)

(466)

(343)

4

(706)

471%

277%

Gain (loss) on swap derivatives

7,047

(303)

1,429

(4,481)

11,750

nm

(40)%

Change in fair value of certain loans held for investment

(21,049)

(2,672)

3,432

2,782

(510)

688%

4,027%

Total non-interest income adjustments

a

$ (16,661)

$ (3,437)

$  4,518

$   (1,695)

$  10,538

385%

(258)%

Non-Interest Expense Adjustments

Merger related expenses

$  2,278

$ 15,183

$       —

$         —

$         —

(85)%

nm

Exit and disposal costs

3,033

3,022

3,813

4,728

1,200

0%

153%

Total non-interest expense adjustments

b

$  5,311

$ 18,205

$  3,813

$    4,728

$    1,200

(71)%

343%

Net interest income (1)

c

$ 227,441

$ 231,625

$ 232,726

$ 227,292

$ 217,955

(2)%

4%

Non-interest income (GAAP)

d

$ 18,989

$ 39,375

$ 39,367

$  46,456

$  43,451

(52)%

(56)%

Less: Non-interest income adjustments

a

16,661

3,437

(4,518)

1,695

(10,538)

385%

(258)%

Operating non-interest income (non-GAAP)

e

$ 35,650

$ 42,812

$ 34,849

$  48,151

$  32,913

(17)%

8%

Revenue (GAAP) (1)

f=c+d

$ 246,430

$ 271,000

$ 272,093

$ 273,748

$ 261,406

(9)%

(6)%

Operating revenue (non-GAAP) (1)

g=c+e

$ 263,091

$ 274,437

$ 267,575

$ 275,443

$ 250,868

(4)%

5%

Non-interest expense (GAAP) (2)

h

$ 157,469

$ 173,106

$ 154,424

$ 152,575

$ 145,571

(9)%

8%

Less: Non-interest expense adjustments

b

(5,311)

(18,205)

(3,813)

(4,728)

(1,200)

(71)%

343%

Operating non-interest expense (non-GAAP)

i

$ 152,158

$ 154,901

$ 150,611

$ 147,847

$ 144,371

(2)%

5%

Net income (GAAP)

j

$ 62,886

$ 74,188

$ 102,265

$ 108,162

$  87,348

(15)%

(28)%

Provision for income taxes

20,917

24,067

33,945

35,630

28,106

(13)%

(26)%

Income before provision for income taxes

83,803

98,255

136,210

143,792

115,454

(15)%

(27)%

Provision (recapture) for credit losses

4,804

(736)

(18,919)

(22,996)

—

nm

nm

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

k

88,607

97,519

117,291

120,796

115,454

(9)%

(23)%

Less: Non-interest income adjustments

a

16,661

3,437

(4,518)

1,695

(10,538)

385%

(258)%

Add: Non-interest expense adjustments

b

5,311

18,205

3,813

4,728

1,200

(71)%

343%

Operating PPNR (non-GAAP)

l

$ 110,579

$ 119,161

$ 116,586

$ 127,219

$ 106,116

(7)%

4%

Net income (GAAP)

j

$ 62,886

$ 74,188

$ 102,265

$ 108,162

$  87,348

(15)%

(28)%

Less: Non-interest income adjustments

a

16,661

3,437

(4,518)

1,695

(10,538)

385%

(258)%

Add: Non-interest expense adjustments

b

5,311

18,205

3,813

4,728

1,200

(71)%

343%

Tax effect of adjustments

(5,462)

(2,664)

176

(1,606)

2,335

105%

(334)%

Operating net income (non-GAAP)

m

$ 79,396

$ 93,166

$ 101,736

$ 112,979

$  80,345

(15)%

(1)%

Efficiency ratio

h / f

63.90%

63.88%

56.75%

55.74%

55.69%

0.02

8.21

Operating efficiency ratio

i / g

57.83%

56.44%

56.29%

53.68%

57.55%

1.39

0.28

Core Banking net income / Consolidated net income

68.99%

83.97%

94.63%

93.13%

81.08%

(14.98)

(12.09)

Core Banking operating net income / Consolidated operating net income

102.37%

97.28%

94.19%

92.44%

78.58%

5.09

23.79

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)

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Seq. Quarter

Year over Year

Non-Interest Income Adjustments

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

$ 40,149

$ 15,415

$    (634)

$ (1,678)

$ (2,014)

160%

nm

Total non-interest income adjustments

a

$ 40,149

$ 15,415

$    (634)

$ (1,678)

$ (2,014)

160%

nm

Total non-interest expense adjustments

b

$       —

$       —

$       —

$       —

$       —

nm

nm

Net interest income

c

$  1,676

$  2,129

$  2,726

$  2,848

$  3,857

(21)%

(57)%

Non-interest income (GAAP)

d

$ 60,980

$ 43,363

$ 34,338

$ 44,619

$ 65,349

41%

(7)%

Less: Non-interest income adjustments

a

(40,149)

(15,415)

634

1,678

2,014

160%

nm

Operating non-interest income (non-GAAP)

e

$ 20,831

$ 27,948

$ 34,972

$ 46,297

$ 67,363

(25)%

(69)%

Revenue (GAAP)

f=c+d

$ 62,656

$ 45,492

$ 37,064

$ 47,467

$ 69,206

38%

(9)%

Operating revenue (non-GAAP)

g=c+e

22,507

30,077

37,698

49,145

71,220

(25)%

(68)%

Non-interest expense (GAAP) (1)

h

24,961

26,605

29,329

36,825

42,021

(6)%

(41)%

Less: Non-interest expense adjustments

b

—

—

—

—

—

nm

nm

Operating non-interest expense (non-GAAP)

i

$ 24,961

$ 26,605

$ 29,329

$ 36,825

$ 42,021

(6)%

(41)%

Net income (GAAP)

j

$ 28,271

$ 14,166

$  5,801

$  7,981

$ 20,389

100%

39%

Provision for income taxes

9,424

4,721

1,934

2,661

6,796

100%

39%

Income before provision for income taxes

37,695

18,887

7,735

10,642

27,185

100%

39%

Provision for credit losses

—

—

—

—

—

nm

nm

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

k

37,695

18,887

7,735

10,642

27,185

100%

39%

Less: Non-interest income adjustments

a

(40,149)

(15,415)

634

1,678

2,014

160%

nm

Add: Non-interest expense adjustments

b

—

—

—

—

—

nm

nm

Operating PPNR (non-GAAP)

l

$ (2,454)

$  3,472

$  8,369

$ 12,320

$ 29,199

(171)%

(108)%

Net income (GAAP)

j

$ 28,271

$ 14,166

$  5,801

$  7,981

$ 20,389

100%

39%

Less: Non-interest income adjustments

a

(40,149)

(15,415)

634

1,678

2,014

160%

nm

Add: Non-interest expense adjustments

b

—

—

—

—

—

nm

nm

Tax effect of adjustments

10,037

3,854

(159)

(420)

(504)

160%

nm

Operating net income (non-GAAP)

m

$ (1,841)

$  2,605

$  6,276

$  9,239

$ 21,899

(171)%

(108)%

Efficiency ratio

h / f

39.84%

58.48%

79.13%

77.58%

60.72%

(18.64)

(20.88)

Operating efficiency ratio

i / g

110.90%

88.46%

77.80%

74.93%

59.00%

22.44

51.90

Mortgage Banking net income / Consolidated net income

31.01%

16.03%

5.37%

6.87%

18.92%

14.98

12.09

Mortgage Banking operating net income / Consolidated operating net income

(2.37)%

2.72%

5.81%

7.56%

21.42%

(5.09)

(23.79)

nm = not meaningful

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

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/umpqua-reports-first-quarter-2022-results-301529267.html

SOURCE Umpqua Holdings Corporation


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

PRNewswire, Press Releases

Related Entities

Dividend, FDIC, Earnings, Definitive Agreement