20.04.2022 22:15:00
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UMPQUA REPORTS FIRST QUARTER 2022 RESULTS
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 | $91 | 13.66% | 14.0% | |||
Net earnings per diluted | Net income ($ in millions) | Return on average tangible | Total risk-based capital ratio |
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 Interest | • 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-Interest | • 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. | |
Credit | • 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 | • 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 | 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 Sheet
Total 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 Income
Net 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 Quality
The 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 Income
Non-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 Expense
Non-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.
Capital
As 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 Disclosures
Segment 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 Information
The 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 Corporation
Umpqua 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 | ||||||
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 to | 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 | ||||||
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. | Year | ||||||||
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 | $ 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. | Year | ||||||
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. | 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. | 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. | Year | ||||||||
Allowance for credit losses on loans and | |||||||||||||||
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 Corporation | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
(Dollars in thousands) | Average | Interest Expense | Average | Average | Interest | Average Yields | Average | Interest | Average | ||||||||
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 Corporation | ||||||||||||||
(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. | Year | |||||||
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. | 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. | 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. | Year | ||||||||
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. | 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. | Year | ||||||||
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. |
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SOURCE Umpqua Holdings Corporation
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