Attached files
| file | filename |
|---|---|
| EX-99.2 - FIRST QUARTER 2017 INVESTOR PRESENTATION - UMPQUA HOLDINGS CORP | umpqq12017earningspresen.htm |
| 8-K - 8-K - UMPQUA HOLDINGS CORP | umpqq120178-k.htm |
EXHIBIT 99.1
Contacts:
Ron Farnsworth | Bradley Howes |
EVP/Chief Financial Officer | SVP/Director of Investor Relations |
Umpqua Holdings Corporation | Umpqua Holdings Corporation |
503-727-4108 | 503-727-4226 |
ronfarnsworth@umpquabank.com | bradhowes@umpquabank.com |
UMPQUA REPORTS FIRST QUARTER 2017 RESULTS
Net earnings of $46.0 million, or $0.21 per common share
Quarterly loan and lease growth of $321.0 million, or 7% annualized
Net interest margin of 3.85%, up 2 basis points from the prior quarter
PORTLAND, Ore. – April 19, 2017 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings available to common shareholders of $46.0 million for the first quarter of 2017, compared to $69.2 million for the fourth quarter of 2016 and $47.5 million for the first quarter of 2016. Earnings per diluted common share were $0.21 for the first quarter of 2017, compared to $0.31 for the fourth quarter of 2016 and $0.22 for the first quarter of 2016.
“Despite some of the near-term headwinds we continue to face, I’m pleased with the progress we’ve made so far on the key priorities that we outlined for 2017,” said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. “Loans and leases increased by $321 million, or 7% annualized, during the first quarter, reflecting balanced growth across our commercial, consumer, leasing and commercial real-estate portfolios. There’s strong momentum driving this loan growth, and with a slight expansion in the net interest margin and as we head into the seasonally stronger mortgage banking quarters, I feel good about how we’re positioned for the remainder of the year.”
Notable items that impacted the first quarter 2017 financial results included:
• | $7.7 million negative adjustment related to the fair value change of the MSR asset, compared to a gain of $16.5 million in the prior quarter and a loss of $20.6 million in the same period of the prior year. |
• | $0.7 million negative adjustment related to the fair value change of the debt capital market swap derivatives, compared to a gain of $4.6 million in the prior quarter and a loss of $1.8 million in the same period of the prior year. |
• | $1.0 million in merger-related expenses, compared to $3.2 million in the prior quarter and $3.5 million in the same period of the prior year. |
• | $0.5 million of exit or disposal costs, compared to $1.2 million in the prior quarter and $0.3 million in the same period of the prior year. |
• | $1.6 million net loss on junior subordinated debentures carried at fair value, consistent with the level in the prior quarter and with the same period of the prior year. |
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 2
First Quarter 2017 Highlights (compared to prior quarter):
• | Net interest income decreased by $1.1 million, driven by lower accretion of the credit discount recorded on acquired loans and two fewer days in the quarter, partially offset by growth in interest-earning assets and a 2 basis point increase in net interest margin; |
• | Provision for loan and lease losses decreased by $1.5 million to $11.7 million, while net charge-offs decreased by $3.5 million to $9.4 million, or 22 basis points of average loans and leases (annualized); |
• | Non-interest income decreased by $38.4 million, of which $29.5 million was related to the change in gains or losses associated with the fair value of the mortgage servicing rights ("MSR") asset and debt capital markets swap derivatives. The remainder of the decline was driven primarily by lower revenues from the origination and sale of mortgages; |
• | Non-interest expense decreased by $0.8 million, driven primarily by lower mortgage banking and merger-related expenses, partially offset by higher seasonal payroll taxes; |
• | Gross loan and lease growth of $321.0 million, or 7% annualized, to $17.8 billion; |
• | Deposit growth of $146.3 million, or 3% annualized, to $19.2 billion; |
• | Non-performing assets to total assets decreased to 0.24%; |
• | Estimated total risk-based capital ratio of 14.4% and estimated Tier 1 common to risk weighted assets ratio of 11.3%; and |
• | Declared quarterly cash dividend of $0.16 per common share. |
Balance Sheet
Total consolidated assets were $24.9 billion as of March 31, 2017, compared to $24.8 billion as of December 31, 2016 and $23.9 billion as of March 31, 2016. Including secured off-balance sheet lines of credit at the Company, total available liquidity was $9.4 billion as of March 31, 2017, representing 38% of total assets and 49% of total deposits.
Gross loans and leases were $17.8 billion as of March 31, 2017, an increase of $321.0 million, or 7% annualized, from $17.5 billion as of December 31, 2016. This included balanced growth in the Company's commercial, commercial real-estate, leasing & equipment finance and consumer loan portfolios. During the first quarter of 2017, the Company sold $12.5 million of leases and equipment finance loans.
Total deposits were $19.2 billion as of March 31, 2017, an increase of $146.3 million, or 3% annualized, from $19.0 billion as of December 31, 2016. This increase was primarily attributable to growth in non-interest bearing demand and savings accounts, partially offset by a $187 million decrease in public funds, which was attributable to a combination of seasonal fluctuations and targeted run-off.
Net Interest Income
Net interest income was $206.7 million for the first quarter of 2017, a decrease of $1.1 million from the prior quarter. This decrease was primarily attributable to a $1.3 million linked quarter decrease in interest income arising from the accretion of the credit discount recorded on acquired loans and two fewer days in the quarter. These were partially offset by the growth in average interest-earning assets and a higher net interest margin.
The Company’s net interest margin was 3.85% for the first quarter of 2017, up two basis points from 3.83% for the fourth quarter of 2016. The linked quarter increase reflects higher average yields on taxable investments and interest-bearing cash, partially offset by the lower level of accretion of the credit discount recorded on acquired loans.
Credit Quality
Under acquisition accounting, loans (including those considered non-performing) acquired from Sterling were recorded at their estimated fair value, and the related allowance for loan losses was eliminated. As a result, the Company wrote down the value of the loan and lease portfolio acquired from Sterling as of the acquisition date. The credit portion of the fair value mark is not reflected in the reported allowance for loan and lease losses, or its related allowance coverage ratios, but we believe should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 3
Loans acquired with significantly deteriorated credit quality are accounted for as purchased credit impaired pools. Accordingly, loans included in the purchased credit impaired pools are not reported as non-performing loans based upon their individual performance status.
During the first quarter of 2017, the Company recorded $6.4 million of accretion related to the Sterling credit discount in interest income, compared to $7.7 million in the prior quarter. As of March 31, 2017, the purchased non-credit impaired loans had approximately $38.5 million of remaining credit discount that will accrete into interest income over the life of the loans, and the purchased credit impaired loan pools had approximately $30.5 million of remaining total discount.
The allowance for loan and lease losses was $136.3 million, or 0.76% of loans and leases, as of March 31, 2017. To provide better comparability to prior periods, on a pro-forma basis, this ratio would have been approximately 1.1% after grossing up the allowance for loan and lease losses and the loans and leases by the amount of the credit discount remaining as of quarter-end. This compares to a pro-forma ratio of approximately 1.2% as of December 31, 2016.
The provision for loan and lease losses was $11.7 million for the first quarter of 2017, a $1.5 million decrease from the prior quarter level, reflecting a lower level of net charge-offs. As of March 31, 2017, non-performing assets represented 0.24% of total assets, down from 0.25% as of December 31, 2016 and from 0.30% as of March 31, 2016.
Non-interest Income
Non-interest income was $60.2 million for the first quarter of 2017, down $38.4 million from the prior quarter, of which $29.5 million was related to the change in gains or losses associated with the fair value of the MSR asset and debt capital markets swap derivatives. The current quarter's non-interest income included negative adjustments of $7.7 million and $0.7 million related to fair value changes of the MSR asset and the debt capital market swap derivatives, respectively, both attributable to the decrease in long-term interest rates during the quarter. This compares to fair value gains of $16.5 million and $4.6 million for the MSR asset and debt capital market swap derivatives, respectively, during the fourth quarter of 2016.
Revenue from the origination and sale of residential mortgages was $24.6 million for the first quarter of 2017, down $7.7 million from the prior quarter. This decrease was driven by a 29% linked quarter decline in for-sale mortgage origination volume, partially offset by a higher home lending gain on sale margin, which increased by 22 basis points to 3.27% for the first quarter of 2017. Of the current quarter’s mortgage production, 67% related to purchase activity, as compared to 63% for the prior quarter and 58% for the same period in the prior year.
Revenue related to the servicing of residential mortgage loans was $9.9 million for the first quarter of 2017, up 3% from the prior quarter, reflecting growth in the residential mortgage loans serviced for others portfolio.
Gain on loan sales decreased by $2.3 million from the prior quarter to $1.8 million, reflecting a lower level of portfolio loans sales compared to the prior quarter.
Non-interest Expense
Non-interest expense was $182.7 million for the first quarter of 2017, down $0.8 million from the prior quarter level. Mortgage banking expenses decreased by $2.6 million from the prior quarter level, consistent with the lower level of mortgage originations. Merger-related expenses also decreased by $2.2 million from the prior quarter. These decreases were partially offset by $4.3 million in higher seasonal payroll taxes.
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 4
Capital
As of March 31, 2017, the Company’s book value per share increased to $17.84, from $17.79 in the prior quarter, and its tangible book value per common share1 increased to $9.57, from $9.50 in the prior quarter.
The Company’s estimated total risk-based capital ratio was 14.4% and its estimated Tier 1 common to risk weighted
assets ratio was 11.3% as of March 31, 2017. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of March 31, 2017 are estimates, pending completion and filing of the Company’s regulatory reports.
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided
under the heading Non-GAAP Financial Measures below.
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 meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders’ equity divided by tangible assets.
The following table provides reconciliations of ending shareholders’ equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
(In thousands, except per share data) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||||||
Total shareholders' equity | $ | 3,931,150 | $ | 3,916,795 | $ | 3,920,208 | $ | 3,902,158 | $ | 3,878,630 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | |||||||||||||||
Other intangible assets, net | 35,197 | 36,886 | 38,753 | 40,620 | 42,948 | |||||||||||||||
Tangible common shareholders' equity | $ | 2,108,302 | $ | 2,092,258 | $ | 2,093,804 | $ | 2,073,887 | $ | 2,048,031 | ||||||||||
Total assets | $ | 24,861,458 | $ | 24,813,119 | $ | 24,744,214 | $ | 24,132,507 | $ | 23,935,686 | ||||||||||
Subtract: | ||||||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | |||||||||||||||
Other intangible assets, net | 35,197 | 36,886 | 38,753 | 40,620 | 42,948 | |||||||||||||||
Tangible assets | $ | 23,038,610 | $ | 22,988,582 | $ | 22,917,810 | $ | 22,304,236 | $ | 22,105,087 | ||||||||||
Common shares outstanding at period end | 220,349 | 220,177 | 220,207 | 220,482 | 220,171 | |||||||||||||||
Common equity ratio | 15.81 | % | 15.79 | % | 15.84 | % | 16.17 | % | 16.20 | % | ||||||||||
Tangible common equity ratio | 9.15 | % | 9.10 | % | 9.14 | % | 9.30 | % | 9.26 | % | ||||||||||
Book value per common share | $ | 17.84 | $ | 17.79 | $ | 17.80 | $ | 17.70 | $ | 17.62 | ||||||||||
Tangible book value per common share | $ | 9.57 | $ | 9.50 | $ | 9.51 | $ | 9.41 | $ | 9.30 | ||||||||||
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 5
About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: 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, and Pivotus Ventures, an innovation studio headquartered in Silicon Valley focused on creating key technologies and business models that transform finance and commerce. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit https://www.umpquabank.com/ask-us/investor-relations/.
Earnings Conference Call Information
The Company will host its first quarter 2017 earnings conference call on Thursday, April 20, 2017, at 10:00 a.m. PDT (1:00 p.m. EDT). During the call, the Company will provide an update on recent activities and discuss its first quarter 2017 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (877) 675-4756 ten minutes prior to the start time and enter conference ID: 1062181. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 1062181. The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at https://www.umpquabank.com/ask-us/investor-relations/.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about credit discount accretion related to loans acquired from Sterling Financial Corporation, loan and lease growth, and trends in the loan portfolio mix. 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 inability to effectively manage problem credits; our inability to successfully implement efficiency initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations.
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 6
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(In thousands, except per share data) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans and leases | $ | 205,996 | $ | 209,812 | $ | 212,037 | $ | 210,290 | $ | 217,928 | (2 | )% | (5 | )% | ||||||||||||
Interest and dividends on investments: | ||||||||||||||||||||||||||
Taxable | 13,931 | 10,630 | 10,779 | 11,963 | 13,055 | 31 | % | 7 | % | |||||||||||||||||
Exempt from federal income tax | 2,242 | 2,229 | 2,181 | 2,183 | 2,235 | 1 | % | 0 | % | |||||||||||||||||
Dividends | 388 | 336 | 332 | 365 | 366 | 15 | % | 6 | % | |||||||||||||||||
Temporary investments & interest bearing deposits | 1,557 | 1,696 | 1,090 | 652 | 480 | (8 | )% | 224 | % | |||||||||||||||||
Total interest income | 224,114 | 224,703 | 226,419 | 225,453 | 234,064 | 0 | % | (4 | )% | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 9,648 | 9,288 | 8,999 | 8,540 | 8,413 | 4 | % | 15 | % | |||||||||||||||||
Repurchase agreements | 30 | 32 | 32 | 32 | 36 | (6 | )% | (17 | )% | |||||||||||||||||
Term debt | 3,510 | 3,413 | 3,558 | 3,848 | 4,186 | 3 | % | (16 | )% | |||||||||||||||||
Junior subordinated debentures | 4,201 | 4,174 | 3,938 | 3,835 | 3,727 | 1 | % | 13 | % | |||||||||||||||||
Total interest expense | 17,389 | 16,907 | 16,527 | 16,255 | 16,362 | 3 | % | 6 | % | |||||||||||||||||
Net interest income | 206,725 | 207,796 | 209,892 | 209,198 | 217,702 | (1 | )% | (5 | )% | |||||||||||||||||
Provision for loan and lease losses | 11,672 | 13,171 | 13,091 | 10,589 | 4,823 | (11 | )% | 142 | % | |||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Service charges on deposits | 14,729 | 15,323 | 15,762 | 15,667 | 14,516 | (4 | )% | 1 | % | |||||||||||||||||
Brokerage revenue | 4,122 | 4,230 | 4,129 | 4,580 | 4,094 | (3 | )% | 1 | % | |||||||||||||||||
Residential mortgage banking revenue, net | 26,834 | 58,448 | 47,206 | 36,783 | 15,426 | (54 | )% | 74 | % | |||||||||||||||||
(Loss) gain on investment securities, net | (2 | ) | — | — | 162 | 696 | nm | (100 | )% | |||||||||||||||||
Gain on loan sales | 1,754 | 4,060 | 1,285 | 5,640 | 2,371 | (57 | )% | (26 | )% | |||||||||||||||||
Loss on junior subordinated debentures carried at fair value | (1,555 | ) | (1,589 | ) | (1,590 | ) | (1,572 | ) | (1,572 | ) | (2 | )% | (1 | )% | ||||||||||||
BOLI income | 2,069 | 2,107 | 2,116 | 2,152 | 2,139 | (2 | )% | (3 | )% | |||||||||||||||||
Other income | 12,274 | 16,041 | 11,802 | 11,247 | 8,281 | (23 | )% | 48 | % | |||||||||||||||||
Total non-interest income | 60,225 | 98,620 | 80,710 | 74,659 | 45,951 | (39 | )% | 31 | % | |||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 106,473 | 105,406 | 105,341 | 107,545 | 106,538 | 1 | % | 0 | % | |||||||||||||||||
Occupancy and equipment, net | 38,673 | 37,618 | 38,181 | 37,850 | 38,295 | 3 | % | 1 | % | |||||||||||||||||
Intangible amortization | 1,689 | 1,867 | 1,867 | 2,328 | 2,560 | (10 | )% | (34 | )% | |||||||||||||||||
FDIC assessments | 4,087 | 3,985 | 4,109 | 3,693 | 3,721 | 3 | % | 10 | % | |||||||||||||||||
Loss (gain) on other real estate owned, net | 82 | (197 | ) | (14 | ) | (1,457 | ) | 1,389 | (142 | )% | (94 | )% | ||||||||||||||
Merger related expenses | 1,020 | 3,218 | 2,011 | 6,634 | 3,450 | (68 | )% | (70 | )% | |||||||||||||||||
Goodwill impairment | — | — | — | — | 142 | 0 | % | nm | ||||||||||||||||||
Other expense | 30,690 | 31,571 | 29,692 | 31,918 | 27,894 | (3 | )% | 10 | % | |||||||||||||||||
Total non-interest expense | 182,714 | 183,468 | 181,187 | 188,511 | 183,989 | 0 | % | (1 | )% | |||||||||||||||||
Income before provision for income taxes | 72,564 | 109,777 | 96,324 | 84,757 | 74,841 | (34 | )% | (3 | )% | |||||||||||||||||
Provision for income taxes | 26,561 | 40,502 | 34,515 | 30,470 | 27,272 | (34 | )% | (3 | )% | |||||||||||||||||
Net income | 46,003 | 69,275 | 61,809 | 54,287 | 47,569 | (34 | )% | (3 | )% | |||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | 12 | 33 | 31 | 32 | 29 | (64 | )% | (59 | )% | |||||||||||||||||
Net earnings available to common shareholders | $ | 45,991 | $ | 69,242 | $ | 61,778 | $ | 54,255 | $ | 47,540 | (34 | )% | (3 | )% | ||||||||||||
Weighted average basic shares outstanding | 220,287 | 220,190 | 220,291 | 220,421 | 220,227 | 0 | % | 0 | % | |||||||||||||||||
Weighted average diluted shares outstanding | 220,779 | 220,756 | 220,751 | 220,907 | 221,052 | 0 | % | 0 | % | |||||||||||||||||
Earnings per common share – basic | $ | 0.21 | $ | 0.31 | $ | 0.28 | $ | 0.25 | $ | 0.22 | (32 | )% | (5 | )% | ||||||||||||
Earnings per common share – diluted | $ | 0.21 | $ | 0.31 | $ | 0.28 | $ | 0.25 | $ | 0.22 | (32 | )% | (5 | )% | ||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 7
Umpqua Holdings Corporation Consolidated Balance Sheets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||
(In thousands, except per share data) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 262,655 | $ | 331,994 | $ | 364,013 | $ | 369,535 | $ | 299,871 | (21 | )% | (12 | )% | ||||||||||||
Interest bearing cash and temporary investments | 421,991 | 1,117,438 | 1,102,428 | 535,828 | 613,049 | (62 | )% | (31 | )% | |||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Trading, at fair value | 11,241 | 10,964 | 10,866 | 10,188 | 9,791 | 3 | % | 15 | % | |||||||||||||||||
Available for sale, at fair value | 3,243,408 | 2,701,220 | 2,520,037 | 2,482,072 | 2,542,535 | 20 | % | 28 | % | |||||||||||||||||
Held to maturity, at amortized cost | 4,121 | 4,216 | 4,302 | 4,382 | 4,525 | (2 | )% | (9 | )% | |||||||||||||||||
Loans held for sale | 372,073 | 387,318 | 565,624 | 552,681 | 659,264 | (4 | )% | (44 | )% | |||||||||||||||||
Loans and leases | 17,829,638 | 17,508,663 | 17,392,051 | 17,355,240 | 16,955,583 | 2 | % | 5 | % | |||||||||||||||||
Allowance for loan and lease losses | (136,292 | ) | (133,984 | ) | (133,692 | ) | (131,042 | ) | (130,243 | ) | 2 | % | 5 | % | ||||||||||||
Loans and leases, net | 17,693,346 | 17,374,679 | 17,258,359 | 17,224,198 | 16,825,340 | 2 | % | 5 | % | |||||||||||||||||
Restricted equity securities | 45,522 | 45,528 | 47,537 | 47,542 | 47,545 | 0 | % | (4 | )% | |||||||||||||||||
Premises and equipment, net | 293,133 | 303,882 | 306,287 | 312,647 | 322,822 | (4 | )% | (9 | )% | |||||||||||||||||
Goodwill | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 1,787,651 | 0 | % | 0 | % | |||||||||||||||||
Other intangible assets, net | 35,197 | 36,886 | 38,753 | 40,620 | 42,948 | (5 | )% | (18 | )% | |||||||||||||||||
Residential mortgage servicing rights, at fair value | 142,344 | 142,973 | 114,446 | 112,095 | 117,172 | 0 | % | 21 | % | |||||||||||||||||
Other real estate owned | 6,518 | 6,738 | 8,309 | 16,437 | 20,411 | (3 | )% | (68 | )% | |||||||||||||||||
Bank owned life insurance | 301,777 | 299,673 | 297,561 | 295,444 | 293,703 | 1 | % | 3 | % | |||||||||||||||||
Deferred tax assets, net | 8,464 | 34,322 | 27,587 | 63,038 | 108,865 | (75 | )% | (92 | )% | |||||||||||||||||
Other assets | 232,017 | 227,637 | 290,454 | 278,149 | 240,194 | 2 | % | (3 | )% | |||||||||||||||||
Total assets | $ | 24,861,458 | $ | 24,813,119 | $ | 24,744,214 | $ | 24,132,507 | $ | 23,935,686 | 0 | % | 4 | % | ||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 19,167,293 | $ | 19,020,985 | $ | 18,918,780 | $ | 18,258,474 | $ | 18,162,974 | 1 | % | 6 | % | ||||||||||||
Securities sold under agreements to repurchase | 304,280 | 352,948 | 309,463 | 360,234 | 325,203 | (14 | )% | (6 | )% | |||||||||||||||||
Term debt | 852,308 | 852,397 | 902,678 | 902,999 | 903,382 | 0 | % | (6 | )% | |||||||||||||||||
Junior subordinated debentures, at fair value | 263,605 | 262,209 | 260,114 | 258,660 | 256,917 | 1 | % | 3 | % | |||||||||||||||||
Junior subordinated debentures, at amortized cost | 100,851 | 100,931 | 101,012 | 101,093 | 101,173 | 0 | % | 0 | % | |||||||||||||||||
Other liabilities | 241,971 | 306,854 | 331,959 | 348,889 | 307,407 | (21 | )% | (21 | )% | |||||||||||||||||
Total liabilities | 20,930,308 | 20,896,324 | 20,824,006 | 20,230,349 | 20,057,056 | 0 | % | 4 | % | |||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Common stock | 3,516,537 | 3,515,299 | 3,514,858 | 3,517,240 | 3,518,792 | 0 | % | 0 | % | |||||||||||||||||
Retained earnings | 433,417 | 422,839 | 388,678 | 362,258 | 343,421 | 3 | % | 26 | % | |||||||||||||||||
Accumulated other comprehensive (loss) income | (18,804 | ) | (21,343 | ) | 16,672 | 22,660 | 16,417 | (12 | )% | (215 | )% | |||||||||||||||
Total shareholders' equity | 3,931,150 | 3,916,795 | 3,920,208 | 3,902,158 | 3,878,630 | 0 | % | 1 | % | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 24,861,458 | $ | 24,813,119 | $ | 24,744,214 | $ | 24,132,507 | $ | 23,935,686 | 0 | % | 4 | % | ||||||||||||
Common shares outstanding at period end | 220,349 | 220,177 | 220,207 | 220,482 | 220,171 | 0 | % | 0 | % | |||||||||||||||||
Book value per common share | $ | 17.84 | $ | 17.79 | $ | 17.80 | $ | 17.70 | $ | 17.62 | 0 | % | 1 | % | ||||||||||||
Tangible book value per common share | $ | 9.57 | $ | 9.50 | $ | 9.51 | $ | 9.41 | $ | 9.30 | 1 | % | 3 | % | ||||||||||||
Tangible equity - common | $ | 2,108,302 | $ | 2,092,258 | $ | 2,093,804 | $ | 2,073,887 | $ | 2,048,031 | 1 | % | 3 | % | ||||||||||||
Tangible common equity to tangible assets | 9.15 | % | 9.10 | % | 9.14 | % | 9.30 | % | 9.26 | % | 0.05 | (0.11 | ) | |||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 8
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Loan & Lease Portfolio | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Loans & leases: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | $ | 3,410,914 | $ | 3,330,442 | $ | 3,280,660 | $ | 3,377,464 | $ | 3,202,488 | 2 | % | 7 | % | ||||||||||||
Owner occupied term, net | 2,584,183 | 2,599,055 | 2,573,942 | 2,581,786 | 2,714,766 | (1 | )% | (5 | )% | |||||||||||||||||
Multifamily, net | 2,885,164 | 2,858,956 | 2,968,019 | 3,004,890 | 2,959,975 | 1 | % | (3 | )% | |||||||||||||||||
Commercial construction, net | 471,007 | 463,625 | 388,934 | 367,879 | 338,801 | 2 | % | 39 | % | |||||||||||||||||
Residential development, net | 145,479 | 142,984 | 127,447 | 111,941 | 121,025 | 2 | % | 20 | % | |||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 1,620,311 | 1,508,780 | 1,480,173 | 1,440,704 | 1,412,816 | 7 | % | 15 | % | |||||||||||||||||
Lines of credit & other, net | 1,114,160 | 1,116,259 | 1,142,946 | 1,116,876 | 1,036,389 | 0 | % | 8 | % | |||||||||||||||||
Leases & equipment finance, net | 1,000,376 | 950,588 | 927,857 | 884,506 | 791,798 | 5 | % | 26 | % | |||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 2,916,924 | 2,887,971 | 2,868,337 | 2,882,076 | 2,879,600 | 1 | % | 1 | % | |||||||||||||||||
Home equity lines & loans, net | 1,015,138 | 1,011,844 | 1,008,219 | 989,814 | 943,254 | 0 | % | 8 | % | |||||||||||||||||
Consumer & other, net | 665,982 | 638,159 | 625,517 | 597,304 | 554,671 | 4 | % | 20 | % | |||||||||||||||||
Total, net of deferred fees and costs | $ | 17,829,638 | $ | 17,508,663 | $ | 17,392,051 | $ | 17,355,240 | $ | 16,955,583 | 2 | % | 5 | % | ||||||||||||
Loan & leases mix: | ||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Non-owner occupied term, net | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | ||||||||||||||||
Owner occupied term, net | 14 | % | 15 | % | 15 | % | 15 | % | 16 | % | ||||||||||||||||
Multifamily, net | 16 | % | 16 | % | 17 | % | 17 | % | 17 | % | ||||||||||||||||
Commercial construction, net | 3 | % | 3 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||
Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Term, net | 9 | % | 9 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||
Lines of credit & other, net | 6 | % | 6 | % | 7 | % | 6 | % | 6 | % | ||||||||||||||||
Leases & equipment finance, net | 6 | % | 5 | % | 5 | % | 6 | % | 5 | % | ||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Mortgage, net | 16 | % | 16 | % | 16 | % | 17 | % | 17 | % | ||||||||||||||||
Home equity lines & loans, net | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||||||
Consumer & other, net | 4 | % | 4 | % | 4 | % | 3 | % | 3 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 9
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Deposits by Type/Core Deposits | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | % Change | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 6,021,585 | $ | 5,861,469 | $ | 5,993,793 | $ | 5,475,986 | $ | 5,460,310 | 3 | % | 10 | % | ||||||||||||
Demand, interest bearing | 2,327,226 | 2,296,532 | 2,218,782 | 2,186,164 | 2,178,446 | 1 | % | 7 | % | |||||||||||||||||
Money market | 6,784,442 | 6,932,717 | 6,841,700 | 6,782,232 | 6,814,160 | (2 | )% | 0 | % | |||||||||||||||||
Savings | 1,400,330 | 1,325,757 | 1,303,816 | 1,254,675 | 1,213,049 | 6 | % | 15 | % | |||||||||||||||||
Time | 2,633,710 | 2,604,510 | 2,560,689 | 2,559,417 | 2,497,009 | 1 | % | 5 | % | |||||||||||||||||
Total | $ | 19,167,293 | $ | 19,020,985 | $ | 18,918,780 | $ | 18,258,474 | $ | 18,162,974 | 1 | % | 6 | % | ||||||||||||
Total core deposits (1) | $ | 17,427,832 | $ | 17,318,003 | $ | 17,257,663 | $ | 16,598,065 | $ | 16,559,943 | 1 | % | 5 | % | ||||||||||||
Deposit mix: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 31 | % | 31 | % | 31 | % | 30 | % | 30 | % | ||||||||||||||||
Demand, interest bearing | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||
Money market | 36 | % | 36 | % | 36 | % | 37 | % | 37 | % | ||||||||||||||||
Savings | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | ||||||||||||||||
Time | 14 | % | 14 | % | 14 | % | 14 | % | 14 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Number of open accounts: | ||||||||||||||||||||||||||
Demand, non-interest bearing | 385,859 | 384,040 | 382,687 | 379,996 | 375,913 | |||||||||||||||||||||
Demand, interest bearing | 81,570 | 82,520 | 83,501 | 84,434 | 85,731 | |||||||||||||||||||||
Money market | 55,903 | 56,031 | 56,128 | 56,492 | 56,927 | |||||||||||||||||||||
Savings | 160,323 | 159,080 | 158,760 | 157,849 | 156,846 | |||||||||||||||||||||
Time | 47,365 | 47,705 | 47,689 | 47,850 | 47,794 | |||||||||||||||||||||
Total | 731,020 | 729,376 | 728,765 | 726,621 | 723,211 | |||||||||||||||||||||
Average balance per account: | ||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 15.6 | $ | 15.3 | $ | 15.7 | $ | 14.4 | $ | 14.5 | ||||||||||||||||
Demand, interest bearing | 28.5 | 27.8 | 26.6 | 25.9 | 25.4 | |||||||||||||||||||||
Money market | 121.4 | 123.7 | 121.9 | 120.1 | 119.7 | |||||||||||||||||||||
Savings | 8.7 | 8.3 | 8.2 | 7.9 | 7.7 | |||||||||||||||||||||
Time | 55.6 | 54.6 | 53.7 | 53.5 | 52.2 | |||||||||||||||||||||
Total | $ | 26.2 | $ | 26.1 | $ | 26.0 | $ | 25.1 | $ | 25.1 | ||||||||||||||||
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 10
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Non-performing Assets | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||||||
Non-performing assets: | ||||||||||||||||||||||||||
Loans and leases on non-accrual status | $ | 28,915 | $ | 27,765 | $ | 27,791 | $ | 25,136 | $ | 30,045 | 4 | % | (4 | )% | ||||||||||||
Loans and leases past due 90+ days & accruing (1) | 23,421 | 28,369 | 26,189 | 23,076 | 22,144 | (17 | )% | 6 | % | |||||||||||||||||
Total non-performing loans and leases | 52,336 | 56,134 | 53,980 | 48,212 | 52,189 | (7 | )% | 0 | % | |||||||||||||||||
Other real estate owned | 6,518 | 6,738 | 8,309 | 16,437 | 20,411 | (3 | )% | (68 | )% | |||||||||||||||||
Total non-performing assets | $ | 58,854 | $ | 62,872 | $ | 62,289 | $ | 64,649 | $ | 72,600 | (6 | )% | (19 | )% | ||||||||||||
Performing restructured loans and leases | $ | 43,184 | $ | 40,667 | $ | 36,645 | $ | 40,848 | $ | 31,409 | 6 | % | 37 | % | ||||||||||||
Loans and leases past due 31-89 days | $ | 49,530 | $ | 30,425 | $ | 39,708 | $ | 29,640 | $ | 29,054 | 63 | % | 70 | % | ||||||||||||
Loans and leases past due 31-89 days to total loans and leases | 0.28 | % | 0.17 | % | 0.23 | % | 0.17 | % | 0.17 | % | ||||||||||||||||
Non-performing loans and leases to total loans and leases (1) | 0.29 | % | 0.32 | % | 0.31 | % | 0.28 | % | 0.31 | % | ||||||||||||||||
Non-performing assets to total assets (1) | 0.24 | % | 0.25 | % | 0.25 | % | 0.27 | % | 0.30 | % | ||||||||||||||||
(1) | Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $5.3 million, $10.9 million, $7.3 million, $11.3 million, and $14.2 million at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively. |
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 11
Umpqua Holdings Corporation | ||||||||||||||||||||||||||
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Balance beginning of period | $ | 133,984 | $ | 133,692 | $ | 131,042 | $ | 130,243 | $ | 130,322 | ||||||||||||||||
Provision for loan and lease losses | 11,672 | 13,171 | 13,091 | 10,589 | 4,823 | (11 | )% | 142 | % | |||||||||||||||||
Charge-offs | (13,002 | ) | (16,303 | ) | (13,088 | ) | (12,682 | ) | (7,850 | ) | (20 | )% | 66 | % | ||||||||||||
Recoveries | 3,638 | 3,424 | 2,647 | 2,892 | 2,948 | 6 | % | 23 | % | |||||||||||||||||
Net charge-offs | (9,364 | ) | (12,879 | ) | (10,441 | ) | (9,790 | ) | (4,902 | ) | (27 | )% | 91 | % | ||||||||||||
Total allowance for loan and lease losses | 136,292 | 133,984 | 133,692 | 131,042 | 130,243 | 2 | % | 5 | % | |||||||||||||||||
Reserve for unfunded commitments | 3,495 | 3,611 | 3,536 | 3,531 | 3,482 | (3 | )% | 0 | % | |||||||||||||||||
Total allowance for credit losses | $ | 139,787 | $ | 137,595 | $ | 137,228 | $ | 134,573 | $ | 133,725 | 2 | % | 5 | % | ||||||||||||
Net charge-offs to average loans and leases (annualized) | 0.22 | % | 0.29 | % | 0.24 | % | 0.23 | % | 0.12 | % | ||||||||||||||||
Recoveries to gross charge-offs | 27.98 | % | 21.00 | % | 20.22 | % | 22.80 | % | 37.55 | % | ||||||||||||||||
Allowance for loan and lease losses to loans and leases | 0.76 | % | 0.77 | % | 0.77 | % | 0.76 | % | 0.77 | % | ||||||||||||||||
Allowance for credit losses to loans and leases | 0.78 | % | 0.79 | % | 0.79 | % | 0.78 | % | 0.79 | % | ||||||||||||||||
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 12
Umpqua Holdings Corporation | |||||||||||||||||||||
Selected Ratios | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||
Average Rates: | |||||||||||||||||||||
Yield on loans and leases | 4.65 | % | 4.70 | % | 4.75 | % | 4.81 | % | 5.07 | % | (0.05 | ) | (0.42 | ) | |||||||
Yield on loans held for sale | 3.86 | % | 3.79 | % | 3.79 | % | 3.80 | % | 4.06 | % | 0.07 | (0.20 | ) | ||||||||
Yield on taxable investments | 2.10 | % | 1.85 | % | 1.96 | % | 2.14 | % | 2.32 | % | 0.25 | (0.22 | ) | ||||||||
Yield on tax-exempt investments (1) | 4.76 | % | 4.72 | % | 4.68 | % | 4.73 | % | 4.73 | % | 0.04 | 0.03 | |||||||||
Yield on interest bearing cash and temporary investments | 0.79 | % | 0.56 | % | 0.50 | % | 0.51 | % | 0.54 | % | 0.23 | 0.25 | |||||||||
Total yield on earning assets (1) | 4.18 | % | 4.14 | % | 4.26 | % | 4.39 | % | 4.66 | % | 0.04 | (0.48 | ) | ||||||||
Cost of interest bearing deposits | 0.30 | % | 0.28 | % | 0.28 | % | 0.27 | % | 0.27 | % | 0.02 | 0.03 | |||||||||
Cost of securities sold under agreements | |||||||||||||||||||||
to repurchase and fed funds purchased | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.05 | % | — | (0.01 | ) | ||||||||
Cost of term debt | 1.67 | % | 1.53 | % | 1.57 | % | 1.72 | % | 1.88 | % | 0.14 | (0.21 | ) | ||||||||
Cost of junior subordinated debentures | 4.70 | % | 4.59 | % | 4.36 | % | 4.30 | % | 4.20 | % | 0.11 | 0.50 | |||||||||
Total cost of interest bearing liabilities | 0.48 | % | 0.46 | % | 0.46 | % | 0.46 | % | 0.47 | % | 0.02 | 0.01 | |||||||||
Net interest spread (1) | 3.70 | % | 3.68 | % | 3.80 | % | 3.93 | % | 4.19 | % | 0.02 | (0.49 | ) | ||||||||
Net interest margin (1) | 3.85 | % | 3.83 | % | 3.95 | % | 4.07 | % | 4.34 | % | 0.02 | (0.49 | ) | ||||||||
Performance Ratios: | |||||||||||||||||||||
Return on average assets | 0.75 | % | 1.11 | % | 1.01 | % | 0.91 | % | 0.82 | % | (0.36 | ) | (0.07 | ) | |||||||
Return on average tangible assets | 0.81 | % | 1.20 | % | 1.09 | % | 0.99 | % | 0.89 | % | (0.39 | ) | (0.08 | ) | |||||||
Return on average common equity | 4.74 | % | 7.04 | % | 6.28 | % | 5.61 | % | 4.93 | % | (2.30 | ) | (0.19 | ) | |||||||
Return on average tangible common equity | 8.83 | % | 13.19 | % | 11.79 | % | 10.59 | % | 9.34 | % | (4.36 | ) | (0.51 | ) | |||||||
Efficiency ratio – Consolidated | 68.15 | % | 59.65 | % | 62.11 | % | 66.15 | % | 69.48 | % | 8.50 | (1.33 | ) | ||||||||
Efficiency ratio – Bank | 65.75 | % | 57.96 | % | 60.45 | % | 64.44 | % | 67.29 | % | 7.79 | (1.54 | ) | ||||||||
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate.
Umpqua Reports First Quarter 2017 Results
April 19, 2017
Page 13
Umpqua Holdings Corporation Average Balances | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||||||
Temporary investments & interest bearing cash | $ | 804,354 | $ | 1,194,904 | $ | 874,410 | $ | 514,881 | $ | 356,674 | (33 | )% | 126 | % | ||||||||||||
Investment securities, taxable | 2,723,576 | 2,373,652 | 2,265,883 | 2,304,998 | 2,311,589 | 15 | % | 18 | % | |||||||||||||||||
Investment securities, tax-exempt | 286,444 | 287,359 | 283,818 | 280,841 | 287,085 | 0 | % | 0 | % | |||||||||||||||||
Loans held for sale | 351,570 | 482,028 | 481,740 | 403,964 | 297,732 | (27 | )% | 18 | % | |||||||||||||||||
Loans and leases | 17,598,314 | 17,386,385 | 17,400,657 | 17,234,220 | 17,008,084 | 1 | % | 3 | % | |||||||||||||||||
Total interest earning assets | 21,764,258 | 21,724,328 | 21,306,508 | 20,738,904 | 20,261,164 | 0 | % | 7 | % | |||||||||||||||||
Goodwill & other intangible assets, net | 1,823,799 | 1,825,491 | 1,827,405 | 1,829,407 | 1,832,046 | 0 | % | 0 | % | |||||||||||||||||
Total assets | 24,730,285 | 24,740,986 | 24,422,986 | 23,896,315 | 23,415,439 | 0 | % | 6 | % | |||||||||||||||||
Non-interest bearing demand deposits | 5,883,924 | 5,939,223 | 5,766,022 | 5,466,098 | 5,289,810 | (1 | )% | 11 | % | |||||||||||||||||
Interest bearing deposits | 13,119,736 | 13,026,614 | 12,836,987 | 12,644,442 | 12,411,005 | 1 | % | 6 | % | |||||||||||||||||
Total deposits | 19,003,660 | 18,965,837 | 18,603,009 | 18,110,540 | 17,700,815 | 0 | % | 7 | % | |||||||||||||||||
Interest bearing liabilities | 14,661,558 | 14,606,120 | 14,446,687 | 14,249,349 | 13,976,678 | 0 | % | 5 | % | |||||||||||||||||
Shareholders’ equity - common | 3,936,340 | 3,914,624 | 3,911,323 | 3,889,593 | 3,878,540 | 1 | % | 1 | % | |||||||||||||||||
Tangible common equity (1) | 2,112,541 | 2,089,133 | 2,083,918 | 2,060,186 | 2,046,494 | 1 | % | 3 | % | |||||||||||||||||
(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 Reports First Quarter 2017 Results
April 19, 2017
Page 14
Umpqua Holdings Corporation Residential Mortgage Banking Activity | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Seq. Quarter | Year over Year | |||||||||||||||||||
Residential mortgage servicing rights: | ||||||||||||||||||||||||||
Residential mortgage loans serviced for others | $ | 14,541,171 | $ | 14,327,368 | $ | 13,880,660 | $ | 13,564,242 | $ | 13,304,468 | 1 | % | 9 | % | ||||||||||||
MSR asset, at fair value | 142,344 | 142,973 | 114,446 | 112,095 | 117,172 | 0 | % | 21 | % | |||||||||||||||||
MSR as % of serviced portfolio | 0.98 | % | 1.00 | % | 0.82 | % | 0.83 | % | 0.88 | % | ||||||||||||||||
Residential mortgage banking revenue: | ||||||||||||||||||||||||||
Origination and sale | $ | 24,647 | $ | 32,386 | $ | 45,631 | $ | 42,083 | $ | 28,409 | (24 | )% | (13 | )% | ||||||||||||
Servicing | 9,858 | 9,597 | 9,401 | 8,640 | 7,642 | 3 | % | 29 | % | |||||||||||||||||
Change in fair value of MSR asset | (7,671 | ) | 16,465 | (7,826 | ) | (13,940 | ) | (20,625 | ) | (147 | )% | (63 | )% | |||||||||||||
Total | $ | 26,834 | $ | 58,448 | $ | 47,206 | $ | 36,783 | $ | 15,426 | (54 | )% | 74 | % | ||||||||||||
Closed loan volume: | ||||||||||||||||||||||||||
Closed loan volume - portfolio | $ | 245,334 | $ | 250,000 | $ | 305,648 | $ | 365,926 | $ | 332,918 | (2 | )% | (26 | )% | ||||||||||||
Closed loan volume - for-sale | 754,715 | 1,061,327 | 1,118,526 | 1,046,349 | 764,076 | (29 | )% | (1 | )% | |||||||||||||||||
Closed loan volume - total | $ | 1,000,049 | $ | 1,311,327 | $ | 1,424,174 | $ | 1,412,275 | $ | 1,096,994 | (24 | )% | (9 | )% | ||||||||||||
Gain on sale margin: | ||||||||||||||||||||||||||
Based on for-sale volume | 3.27 | % | 3.05 | % | 4.08 | % | 4.02 | % | 3.72 | % | 0.22 | (0.45 | ) | |||||||||||||
###