UMPQUA HLDGS.
UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2021 RESULTS
| |||
| $0.41 | $88 | 12.94% | 14.3% |
| Net earnings per diluted common share | Net income ($ in millions) |
Return on average tangible common equity ("ROATCE")1
| Total risk-based capital ratio (estimated) |
0
| CEO Commentary |
| "Umpqua's fourth quarter results round out an outstanding year for the bank that is particularly commendable given the ongoing challenges faced by our associates, customers, and communities" said Cort O'Haver, President and CEO. "Non-PPP (Paycheck Protection Program) loan growth of $930 million marks the highest quarterly growth in the bank's history, and it highlights the success of multi-year initiatives that are further evidenced through core commercial fee growth and a continued reduction of our total cost of deposits to just six basis points. The quarter's growth demonstrates our ability to keep our teams focused on organically expanding our franchise and creating shareholder value while meticulously planning for our previously announced combination with Columbia Banking System." |
-Cort O'Haver, President and CEO of Umpqua Holdings Corporation
|
| FOURTH QUARTER HIGHLIGHTS | |
| Net Interest Income and NIM |
•Net interest income decreased by $1.7 million on a quarter-to-quarter basis due to lower income related to PPP loan forgiveness as net interest income otherwise expanded.
|
•Net interest margin (NIM) of 3.15% was down six basis points from the prior period due to lower PPP fees. The impact was partially offset by higher average non-PPP loan balances and lower interest expense.
| |
| Non-Interest Income and Expense |
•Non-interest income increased by $9.0 million due to higher net mortgage banking revenue of $9.0 million given a write-up of the mortgage servicing rights (MSR) asset.
|
•Non-interest expense increased by $16.0 million due to merger-related expenses of $15.2 million.
| |
| Credit Quality |
•Net charge-offs remained low at 0.13% of average loans and leases (annualized).
|
•A recapture of the provision for credit losses of $0.7 million was recorded in the period as forecasted economic conditions improved.
| |
•Non-performing assets to total assets remained at 0.17%, consistent with the prior period.
| |
| Capital |
•Estimated total risk-based capital ratio of 14.3% and estimated Tier 1 risk-based capital ratio of 11.6%.
|
•Paid a quarterly cash dividend of $0.21 per common share on November 30, 2021 to shareholders of record as of November 19, 2021.
| |
| Other Notable Items |
•Completed 15 planned store consolidations during the quarter, bringing total Next Gen 2.0 store consolidations to 34.
|
•$3.0 million in exit disposal costs related to store consolidations and back-office lease exits.
|
| 4Q21 KEY FINANCIAL DATA | ||||||
| PERFORMANCE METRICS | 4Q21 | 3Q21 | 4Q20 | |||
| Return on average assets | 1.13% | 1.40% | 2.04% | |||
| Return on average tangible common equity | 12.94% | 15.88% | 23.07% | |||
| Net interest margin | 3.15% | 3.21% | 3.35% | |||
| Efficiency ratio - consolidated | 63.10% | 59.44% | 58.82% | |||
| Loan to deposit ratio | 84.80% | 81.65% | 88.45% | |||
INCOME STATEMENT
($ in 000s, excl. per share data)
| 4Q21 | 3Q21 | 4Q20 | |||
| Net interest income | $233,379 | $235,074 | $234,907 | |||
| (Recapture) provision for credit losses | ($736) | ($18,919) | $29 | |||
| Non-interest income | $82,738 | $73,705 | $123,960 | |||
| Non-interest expense | $199,711 | $183,753 | $211,312 | |||
| Earnings per common share - diluted | $0.41 | $0.49 | $0.68 | |||
| Dividends paid per share | $0.21 | $0.21 | $0.21 | |||
| BALANCE SHEET | 4Q21 | 3Q21 | 4Q20 | |||
| Total assets | $30.6 | B | $30.9 | B | $29.2 | B |
| Loans and leases | $22.6 | B | $22.0 | B | $21.8 | B |
| Total deposits | $26.6 | B | $26.9 | B | $24.6 | B |
| Tangible book value per common share1 | $12.65 | $12.52 | $12.21 | |||
| Book value per common share | $12.69 | $12.57 | $12.28 |
Umpqua Holdings Corporation Contact:
Jacquelynne "Jacque" Bohlen, SVP/Investor Relations Director, 503-727-4117, jacquebohlen@umpquabank.com
1 "Non-GAAP" financial measures. A reconciliation to the comparable GAAP measurement is provided on page 4
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 2
Balance Sheet
Total consolidated assets were $30.6 billion as of December 31, 2021, compared to $30.9 billion as of September 30, 2021 and $29.2 billion as of December 31, 2020. Including secured off-balance sheet lines of credit, total available liquidity was $15.3 billion as of December 31, 2021, representing 50% of total assets and 58% of total deposits.
Gross loans and leases were $22.6 billion as of December 31, 2021, an increase of $583.2 million from $22.0 billion as of September 30, 2021. The increase is primarily due to balanced, non-PPP loan growth of $929.5 million that substantially offset a $346.3 million decline in PPP balances as related loan forgiveness continued. Please refer to the additional loan tables in the Q4 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.
Total deposits were $26.6 billion as of December 31, 2021, a decrease of $313.7 million from $26.9 billion as of September 30, 2021. This decrease was primarily attributable to anticipated outflows related to the April 2021 sale of Umpqua Investments, a continued decline in personal certificates of deposit balances, and normal seasonal trends related to customer tax and escrow payments.
Net Interest Income
Net interest income was $233.4 million for the fourth quarter of 2021, down $1.7 million from the prior quarter. The decrease is due to a $5.9 million reduction in PPP-related fee income accreted into interest income, with the effect partially offset by higher non-PPP loan income and higher investment securities income due to higher average balances in the quarter and a reduction in the cost of interest-bearing deposits.
The Company's net interest margin was 3.15% for the fourth quarter of 2021, down 6 basis points from 3.21% for the third quarter of 2021. The decrease is attributable to the aforementioned decline in PPP-related fees. Please refer to the Q4 2021 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.
Credit Quality
The allowance for credit losses was $261.2 million, or 1.16% of loans and leases, as of December 31, 2021, which was down from $269.3 million, or 1.23% of loans and leases, as of September 30, 2021. The recapture of provision for credit losses was $0.7 million for the fourth quarter of 2021, compared to a recapture of $18.9 million for the third quarter of 2021. The current quarter's modest recapture of provision reflects improvement in economic forecasts used in credit models that was largely offset by allowance requirements for new loan generation.
Net charge-offs as a percentage of average loans and leases increased by two basis points from the prior quarter to 0.13% of average loans and leases for the fourth quarter of 2021 (annualized). Net charge-off activity within the FinPac portfolio remained below its historical average for the second consecutive quarter. As of December 31, 2021, non-performing assets were 0.17% of total assets, compared to 0.17% as of September 30, 2021 and 0.24% as of December 31, 2020.
Current Expected Credit Loss (CECL)
On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"). In applying CECL, we use credit models that factor in economic forecasts to project life of loan performance. At the beginning of the COVID-19 pandemic, economic forecasts projected significant, negative COVID-19 related impacts to the economy; therefore we recorded significant provisions for credit losses in the first and second quarters of 2020. As those future economic forecasts stabilized as well as incorporating loan mix changes, we recorded a recapture of $0.7 million of the allowance for credit losses in the current period.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 3
Non-interest Income
Non-interest income was $82.7 million for the fourth quarter of 2021, up $9.0 million from the prior quarter and driven primarily by the increase in net mortgage banking revenue. As detailed in our segment disclosures, non-interest income for the Core Banking segment includes a fair value loss of $3.4 million for the fourth quarter of 2021, 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 gain of $4.5 million in the third quarter of 2021, and the $8.0 million decline in fair value change between periods from these specific items was primarily driven by a $6.1 million decline in fair value change for loans carried at fair value, which is captured in other income. Please refer to the Q4 2021 Earnings Presentation for additional details related to other non-interest income.
Revenue from the origination and sale of residential mortgages was $23.6 million for the fourth quarter of 2021, a decrease of $6.7 million from the prior quarter. This decline reflects a sequential quarter decrease of $116.0 million or 11.8% in for-sale mortgage origination volume given anticipated seasonal trends and a decrease of 36 basis points in the home lending gain on sale margin to 2.71% for the fourth quarter of 2021 due to a seasonal decline in the locked pipeline. Interest rate movements favorably impacted valuation of the MSR asset, resulting in a net write-up during the quarter of $10.1 million, which includes a $15.4 million fair value gain related to model inputs. Of the current quarter's mortgage production, 54% related to purchase activity, compared to 61% for the prior quarter and 48% for the same period in the prior year.
Non-interest Expense
Non-interest expense was $199.7 million for the fourth quarter of 2021, an increase of $16.0 million from the prior quarter level. The current quarter includes $15.2 million in merger-related expenses and $3.0 million in exit and disposal costs related to store consolidations and back-office lease exits. Please refer to the Q4 2021 Earnings Presentation for quarterly expense change details.
Capital
As of December 31, 2021, the Company's book value per common share increased to $12.69 from $12.57 in the prior quarter, and its tangible book value per common share2 increased to $12.65 from $12.52 in the prior quarter.
The Company's estimated total capital to risk-weighted assets ratio was 14.3% and its estimated Tier 1 capital to risk-weighted assets ratio was 11.6% as of December 31, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of December 31, 2021 are estimates, pending completion and filing of the Company's regulatory reports.
Segment Disclosures
Segment disclosures on pages 19, 20 and 21 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.
2 "Non-GAAP" financial measure. A reconciliation to the comparable GAAP measurement is provided on page 4
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 4
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.
Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.
The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
| (Dollars in thousands, except per share data) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||
| Total shareholders' equity | $ | 2,749,270 | $ | 2,722,379 | $ | 2,766,316 | $ | 2,681,869 | $ | 2,704,577 |
| Subtract: | ||||||||||
| Goodwill | - | - | - | 2,715 | 2,715 | |||||
| Other intangible assets, net | 8,840 | 9,970 | 11,100 | 12,230 | 13,360 | |||||
| Tangible common shareholders' equity | $ | 2,740,430 | $ | 2,712,409 | $ | 2,755,216 | $ | 2,666,924 | $ | 2,688,502 |
| Total assets | $ | 30,640,936 | $ | 30,891,479 | $ | 30,284,965 | $ | 30,036,680 | $ | 29,235,175 |
| Subtract: | ||||||||||
| Goodwill | - | - | - | 2,715 | 2,715 | |||||
| Other intangible assets, net | 8,840 | 9,970 | 11,100 | 12,230 | 13,360 | |||||
| Tangible assets | $ | 30,632,096 | $ | 30,881,509 | $ | 30,273,865 | $ | 30,021,735 | $ | 29,219,100 |
| Common shares outstanding at period end | 216,626 | 216,622 | 220,626 | 220,491 | 220,226 | |||||
| Total shareholders' equity to total assets ratio | 8.97 | % | 8.81 | % | 9.13 | % | 8.93 | % | 9.25 | % |
| Tangible common equity ratio | 8.95 | % | 8.78 | % | 9.10 | % | 8.88 | % | 9.20 | % |
| Book value per common share | $ | 12.69 | $ | 12.57 | $ | 12.54 | $ | 12.16 | $ | 12.28 |
| Tangible book value per common share | $ | 12.65 | $ | 12.52 | $ | 12.49 | $ | 12.10 | $ | 12.21 |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 5
About Umpqua Holdings Corporation
Umpqua Holdings Corporation(NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based 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 Corporation is headquartered in Portland, Oregon. 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 has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the sixteenth consecutive year. In addition to its retail banking presence, Umpqua Bank also owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses. For more information, visitwww.umpquabank.com.
Earnings Conference Call Information
The Company will host its fourth quarter 2021 earnings conference call on Thursday, January 20, 2022, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its fourth quarter and full year 2021 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: 3384189. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 3384189. 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/.
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. 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, deferral programs, 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 announcement or completion of the transaction. 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.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 6
| Umpqua Holdings Corporation | ||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Quarter Ended | % Change | |||||||||||||
| (In thousands, except per share data) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter | Year over Year | |||||||
| Interest income: | ||||||||||||||
| Loans and leases | $ | 221,501 | $ | 224,403 | $ | 223,470 | $ | 221,141 | $ | 240,815 | (1) | % | (8) | % |
| Interest and dividends on investments: | ||||||||||||||
| Taxable | 16,566 | 16,102 | 14,619 | 13,112 | 11,951 | 3 | % | 39 | % | |||||
| Exempt from federal income tax | 1,456 | 1,470 | 1,487 | 1,534 | 1,523 | (1) | % | (4) | % | |||||
| Dividends | 102 | 213 | 405 | 598 | 659 | (52) | % | (85) | % | |||||
| Temporary investments and interest bearing deposits | 1,229 | 1,237 | 774 | 624 | 531 | (1) | % | 131 | % | |||||
| Total interest income | 240,854 | 243,425 | 240,755 | 237,009 | 255,479 | (1) | % | (6) | % | |||||
| Interest expense: | ||||||||||||||
| Deposits | 4,357 | 5,100 | 7,016 | 10,678 | 14,567 | (15) | % | (70) | % | |||||
| Securities sold under agreement to repurchase and federal funds purchased | 48 | 88 | 68 | 76 | 93 | (45) | % | (48) | % | |||||
| Borrowings | 51 | 149 | 866 | 1,772 | 2,765 | (66) | % | (98) | % | |||||
| Junior subordinated debentures | 3,019 | 3,014 | 3,042 | 3,052 | 3,147 | 0 | % | (4) | % | |||||
| Total interest expense | 7,475 | 8,351 | 10,992 | 15,578 | 20,572 | (10) | % | (64) | % | |||||
| Net interest income | 233,379 | 235,074 | 229,763 | 221,431 | 234,907 | (1) | % | (1) | % | |||||
| (Recapture) provision for credit losses | (736) | (18,919) | (22,996) | - | 29 | (96) | % | nm | ||||||
| Non-interest income: | ||||||||||||||
| Service charges on deposits | 11,188 | 10,941 | 10,310 | 9,647 | 10,202 | 2 | % | 10 | % | |||||
| Card-based fees | 9,355 | 9,111 | 10,274 | 7,374 | 7,754 | 3 | % | 21 | % | |||||
| Brokerage revenue | 31 | 31 | 1,135 | 3,915 | 4,093 | 0 | % | (99) | % | |||||
| Residential mortgage banking revenue, net | 43,185 | 34,150 | 44,443 | 65,033 | 79,028 | 26 | % | (45) | % | |||||
| Gain on sale of debt securities, net | 4 | - | - | 4 | - | nm | nm | |||||||
| (Loss) gain on equity securities, net | (466) | (343) | 4 | (706) | (173) | 36 | % | 169 | % | |||||
| Gain on loan and lease sales, net | 4,816 | 4,208 | 5,318 | 1,373 | 3,374 | 14 | % | 43 | % | |||||
| BOLI income | 2,101 | 2,038 | 2,092 | 2,071 | 2,067 | 3 | % | 2 | % | |||||
| Other income | 12,524 | 13,569 | 17,499 | 20,089 | 17,615 | (8) | % | (29) | % | |||||
| Total non-interest income | 82,738 | 73,705 | 91,075 | 108,800 | 123,960 | 12 | % | (33) | % | |||||
| Non-interest expense: | ||||||||||||||
| Salaries and employee benefits | 117,477 | 117,636 | 121,573 | 124,134 | 132,460 | 0 | % | (11) | % | |||||
| Occupancy and equipment, net | 34,310 | 33,944 | 34,657 | 34,635 | 41,758 | 1 | % | (18) | % | |||||
| Intangible amortization | 1,130 | 1,130 | 1,130 | 1,130 | 1,246 | 0 | % | (9) | % | |||||
| FDIC assessments | 2,896 | 2,136 | 1,607 | 2,599 | 3,014 | 36 | % | (4) | % | |||||
| Merger related expenses | 15,183 | - | - | - | - | nm | nm | |||||||
| Other expenses | 28,715 | 28,907 | 30,433 | 25,094 | 32,834 | (1) | % | (13) | % | |||||
| Total non-interest expense | 199,711 | 183,753 | 189,400 | 187,592 | 211,312 | 9 | % | (5) | % | |||||
| Income before provision for income taxes | 117,142 | 143,945 | 154,434 | 142,639 | 147,526 | (19) | % | (21) | % | |||||
| Provision (benefit) for income taxes | 28,788 | 35,879 | 38,291 | 34,902 | (3,204) | (20) | % | nm | ||||||
| Net income | $ | 88,354 | $ | 108,066 | $ | 116,143 | $ | 107,737 | $ | 150,730 | (18) | % | (41) | % |
| Weighted average basic shares outstanding | 216,624 | 218,416 | 220,593 | 220,367 | 220,225 | (1) | % | (2) | % | |||||
| Weighted average diluted shares outstanding | 217,356 | 218,978 | 221,022 | 220,891 | 220,663 | (1) | % | (1) | % | |||||
| Earnings per common share - basic | $ | 0.41 | $ | 0.49 | $ | 0.53 | $ | 0.49 | $ | 0.68 | (16) | % | (40) | % |
| Earnings per common share - diluted | $ | 0.41 | $ | 0.49 | $ | 0.53 | $ | 0.49 | $ | 0.68 | (16) | % | (40) | % |
| nm = not meaningful |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 7
| Umpqua Holdings Corporation | ||||||
| Consolidated Statements of Operations | ||||||
| (Unaudited) | ||||||
| Year Ended | % Change | |||||
| (In thousands, except per share data) | Dec 31, 2021 | Dec 31, 2020 | Year over Year | |||
| Interest income: | ||||||
| Loans and leases | $ | 890,515 | $ | 951,439 | (6) | % |
| Interest and dividends on investments: | ||||||
| Taxable | 60,399 | 47,739 | 27 | % | ||
| Exempt from federal income tax | 5,947 | 6,095 | (2) | % | ||
| Dividends | 1,318 | 2,615 | (50) | % | ||
| Temporary investments and interest bearing deposits | 3,864 | 4,739 | (18) | % | ||
| Total interest income | 962,043 | 1,012,627 | (5) | % | ||
| Interest expense: | ||||||
| Deposits | 27,151 | 100,200 | (73) | % | ||
| Securities sold under agreement to repurchase and federal funds purchased | 280 | 766 | (63) | % | ||
| Borrowings | 2,838 | 13,921 | (80) | % | ||
| Junior subordinated debentures | 12,127 | 15,221 | (20) | % | ||
| Total interest expense | 42,396 | 130,108 | (67) | % | ||
| Net interest income | 919,647 | 882,519 | 4 | % | ||
| (Recapture) provision for credit losses | (42,651) | 204,861 | (121) | % | ||
| Non-interest income: | ||||||
| Service charges on deposits | 42,086 | 40,838 | 3 | % | ||
| Card-based fees | 36,114 | 28,190 | 28 | % | ||
| Brokerage revenue | 5,112 | 15,599 | (67) | % | ||
| Residential mortgage banking revenue, net | 186,811 | 270,822 | (31) | % | ||
| Gain on sale of debt securities, net | 8 | 190 | (96) | % | ||
| (Loss) gain on equity securities, net | (1,511) | 769 | (296) | % | ||
| Gain on loan and lease sales, net | 15,715 | 6,707 | 134 | % | ||
| BOLI income | 8,302 | 8,399 | (1) | % | ||
| Other income | 63,681 | 40,495 | 57 | % | ||
| Total non-interest income | 356,318 | 412,009 | (14) | % | ||
| Non-interest expense: | ||||||
| Salaries and employee benefits | 480,820 | 479,247 | 0 | % | ||
| Occupancy and equipment, net | 137,546 | 151,650 | (9) | % | ||
| Intangible amortization | 4,520 | 4,986 | (9) | % | ||
| FDIC assessments | 9,238 | 12,516 | (26) | % | ||
| Merger related expenses | 15,183 | - | nm | |||
| Goodwill impairment | - | 1,784,936 | nm | |||
| Other expenses | 113,149 | 112,752 | 0 | % | ||
| Total non-interest expense | 760,456 | 2,546,087 | (70) | % | ||
| Income (loss) before provision for income taxes | 558,160 | (1,456,420) | (138) | % | ||
| Provision for income taxes | 137,860 | 67,000 | 106 | % | ||
| Net income (loss) | $ | 420,300 | $ | (1,523,420) | (128) | % |
| Weighted average basic shares outstanding | 219,032 | 220,218 | (1) | % | ||
| Weighted average diluted shares outstanding | 219,581 | 220,218 | 0 | % | ||
| Earnings per common share - basic | $ | 1.92 | $ | (6.92) | (128) | % |
| Earnings per common share - diluted | $ | 1.91 | $ | (6.92) | (128) | % |
| nm = not meaningful |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 8
|
Umpqua Holdings Corporation Consolidated Balance Sheets | ||||||||||||||
| (Unaudited) | ||||||||||||||
| % Change | ||||||||||||||
| (In thousands, except per share data) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 |
Seq. Quarter | Year over Year | |||||||
| Assets: | ||||||||||||||
| Cash and due from banks | $ | 222,015 | $ | 395,555 | $ | 397,526 | $ | 379,361 | $ | 370,219 | (44) | % | (40) | % |
| Interest bearing cash and temporary investments | 2,539,606 | 3,349,034 | 2,688,285 | 2,861,820 | 2,202,962 | (24) | % | 15 | % | |||||
| Investment securities: | ||||||||||||||
| Equity and other, at fair value | 81,214 | 81,575 | 82,099 | 82,771 | 83,077 | 0 | % | (2) | % | |||||
| Available for sale, at fair value | 3,870,435 | 3,723,171 | 3,473,950 | 3,167,825 | 2,932,558 | 4 | % | 32 | % | |||||
| Held to maturity, at amortized cost | 2,744 | 2,795 | 2,876 | 2,954 | 3,034 | (2) | % | (10) | % | |||||
| Loans held for sale | 353,105 | 352,466 | 429,052 | 376,481 | 766,225 | 0 | % | (54) | % | |||||
| Loans and leases | 22,553,180 | 21,969,940 | 22,143,739 | 22,160,860 | 21,779,367 | 3 | % | 4 | % | |||||
| Allowance for credit losses on loans and leases | (248,412) | (257,560) | (279,887) | (311,283) | (328,401) | (4) | % | (24) | % | |||||
| Net loans and leases | 22,304,768 | 21,712,380 | 21,863,852 | 21,849,577 | 21,450,966 | 3 | % | 4 | % | |||||
| Restricted equity securities | 10,916 | 10,946 | 15,247 | 22,057 | 41,666 | 0 | % | (74) | % | |||||
| Premises and equipment, net | 171,125 | 172,624 | 172,546 | 176,571 | 178,050 | (1) | % | (4) | % | |||||
| Operating lease right-of-use assets | 82,366 | 88,379 | 95,030 | 100,643 | 104,937 | (7) | % | (22) | % | |||||
| Goodwill | - | - | - | 2,715 | 2,715 | nm | nm | |||||||
| Other intangible assets, net | 8,840 | 9,970 | 11,100 | 12,230 | 13,360 | (11) | % | (34) | % | |||||
| Residential mortgage servicing rights, at fair value | 123,615 | 105,834 | 102,699 | 100,413 | 92,907 | 17 | % | 33 | % | |||||
| Bank owned life insurance | 327,745 | 325,646 | 324,998 | 322,867 | 323,470 | 1 | % | 1 | % | |||||
| Deferred tax asset, net | - | 8,402 | - | 10,905 | - | nm | nm | |||||||
| Other assets | 542,442 | 552,702 | 625,705 | 567,490 | 669,029 | (2) | % | (19) | % | |||||
| Total assets | $ | 30,640,936 | $ | 30,891,479 | $ | 30,284,965 | $ | 30,036,680 | $ | 29,235,175 | (1) | % | 5 | % |
| Liabilities: | ||||||||||||||
| Deposits | $ | 26,594,685 | $ | 26,908,397 | $ | 26,153,553 | $ | 25,886,833 | $ | 24,622,201 | (1) | % | 8 | % |
| Securities sold under agreements to repurchase | 492,247 | 467,760 | 480,302 | 420,402 | 375,384 | 5 | % | 31 | % | |||||
| Borrowings | 6,329 | 6,367 | 111,405 | 281,444 | 771,482 | (1) | % | (99) | % | |||||
| Junior subordinated debentures, at fair value | 293,081 | 299,508 | 287,723 | 281,580 | 255,217 | (2) | % | 15 | % | |||||
| Junior subordinated debentures, at amortized cost | 88,041 | 88,098 | 88,155 | 88,212 | 88,268 | 0 | % | 0 | % | |||||
| Operating lease liabilities | 95,427 | 100,557 | 106,195 | 109,014 | 113,593 | (5) | % | (16) | % | |||||
| Deferred tax liability, net | 4,353 | - | 2,497 | - | 5,441 | nm | (20) | % | ||||||
| Other liabilities | 317,503 | 298,413 | 288,819 | 287,326 | 299,012 | 6 | % | 6 | % | |||||
| Total liabilities | 27,891,666 | 28,169,100 | 27,518,649 | 27,354,811 | 26,530,598 | (1) | % | 5 | % | |||||
| Shareholders' equity: | ||||||||||||||
| Common stock | 3,444,849 | 3,442,085 | 3,517,641 | 3,515,248 | 3,514,599 | 0 | % | (2) | % | |||||
| Accumulated deficit | (697,338) | (739,915) | (801,954) | (871,511) | (932,767) | (6) | % | (25) | % | |||||
| Accumulated other comprehensive income | 1,759 | 20,209 | 50,629 | 38,132 | 122,745 | (91) | % | (99) | % | |||||
| Total shareholders' equity | 2,749,270 | 2,722,379 | 2,766,316 | 2,681,869 | 2,704,577 | 1 | % | 2 | % | |||||
| Total liabilities and shareholders' equity | $ | 30,640,936 | $ | 30,891,479 | $ | 30,284,965 | $ | 30,036,680 | $ | 29,235,175 | (1) | % | 5 | % |
| Common shares outstanding at period end | 216,626 | 216,622 | 220,626 | 220,491 | 220,226 | 0 | % | (2) | % | |||||
| Book value per common share | $ | 12.69 | $ | 12.57 | $ | 12.54 | $ | 12.16 | $ | 12.28 | 1 | % | 3 | % |
| Tangible book value per common share | $ | 12.65 | $ | 12.52 | $ | 12.49 | $ | 12.10 | $ | 12.21 | 1 | % | 4 | % |
| Tangible equity - common | $ | 2,740,430 | $ | 2,712,409 | $ | 2,755,216 | $ | 2,666,924 | $ | 2,688,502 | 1 | % | 2 | % |
| Tangible common equity to tangible assets | 8.95 | % | 8.78 | % | 9.10 | % | 8.88 | % | 9.20 | % | 0.17 | (0.25) |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 9
| Umpqua Holdings Corporation | ||||||||||||||
| Loan & Lease Portfolio | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | % Change | ||||||||
| Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||
| Loans and leases: | ||||||||||||||
| Commercial real estate: | ||||||||||||||
| Non-owner occupied term, net | $ | 3,786,887 | $ | 3,561,764 | $ | 3,580,386 | $ | 3,455,773 | $ | 3,505,802 | 6 | % | 8 | % |
| Owner occupied term, net | 2,332,422 | 2,330,338 | 2,398,326 | 2,358,169 | 2,333,945 | 0 | % | 0 | % | |||||
| Multifamily, net | 4,051,202 | 3,813,024 | 3,553,704 | 3,421,320 | 3,349,196 | 6 | % | 21 | % | |||||
| Construction & development, net | 890,338 | 882,778 | 857,866 | 876,297 | 828,478 | 1 | % | 7 | % | |||||
| Residential development, net | 206,990 | 177,148 | 193,904 | 190,841 | 192,761 | 17 | % | 7 | % | |||||
| Commercial: | ||||||||||||||
Term, net (1)
| 3,008,473 | 3,159,466 | 3,748,269 | 4,350,763 | 4,024,467 | (5) | % | (25) | % | |||||
| Lines of credit & other, net | 910,733 | 930,350 | 908,518 | 825,162 | 862,760 | (2) | % | 6 | % | |||||
| Leases & equipment finance, net | 1,467,676 | 1,457,248 | 1,437,372 | 1,420,977 | 1,456,630 | 1 | % | 1 | % | |||||
| Residential: | ||||||||||||||
| Mortgage, net | 4,517,266 | 4,330,860 | 4,145,432 | 3,958,644 | 3,871,906 | 4 | % | 17 | % | |||||
| Home equity loans & lines, net | 1,197,170 | 1,133,823 | 1,118,278 | 1,097,168 | 1,136,064 | 6 | % | 5 | % | |||||
| Consumer & other, net | 184,023 | 193,141 | 201,684 | 205,746 | 217,358 | (5) | % | (15) | % | |||||
| Total loans and leases, net of deferred fees and costs | $ | 22,553,180 | $ | 21,969,940 | $ | 22,143,739 | $ | 22,160,860 | $ | 21,779,367 | 3 | % | 4 | % |
(1)The Bank participates 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
| $ | 380,440 | $ | 726,737 | $ | 1,380,212 | $ | 2,047,793 | $ | 1,750,211 | (48) | % | (78) | % |
| Loan and leases mix: | ||||||||||||||
| Commercial real estate: | ||||||||||||||
| Non-owner occupied term, net | 17 | % | 16 | % | 16 | % | 15 | % | 16 | % | ||||
| Owner occupied term, net | 10 | % | 11 | % | 11 | % | 11 | % | 11 | % | ||||
| Multifamily, net | 18 | % | 17 | % | 16 | % | 15 | % | 15 | % | ||||
| Construction & development, net | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||
| Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||
| Commercial: | ||||||||||||||
| Term, net | 13 | % | 14 | % | 17 | % | 20 | % | 18 | % | ||||
| Lines of credit & other, net | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||
| Leases & equipment finance, net | 7 | % | 7 | % | 6 | % | 6 | % | 7 | % | ||||
| Residential: | ||||||||||||||
| Mortgage, net | 20 | % | 20 | % | 19 | % | 18 | % | 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 Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 10
| Umpqua Holdings Corporation | ||||||||||||||
| Deposits by Type/Core Deposits | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | % Change | ||||||||
| Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||||
| Deposits: | ||||||||||||||
| Demand, non-interest bearing | $ | 11,023,724 | $ | 11,121,127 | $ | 10,718,921 | $ | 10,500,482 | $ | 9,632,773 | (1) | % | 14 | % |
| Demand, interest bearing | 3,774,937 | 3,758,019 | 3,466,251 | 3,244,624 | 3,051,487 | 0 | % | 24 | % | |||||
| Money market | 7,611,718 | 7,780,442 | 7,559,621 | 7,554,798 | 7,173,920 | (2) | % | 6 | % | |||||
| Savings | 2,375,723 | 2,325,929 | 2,221,524 | 2,109,211 | 1,912,752 | 2 | % | 24 | % | |||||
| Time | 1,808,583 | 1,922,880 | 2,187,236 | 2,477,718 | 2,851,269 | (6) | % | (37) | % | |||||
| Total | $ | 26,594,685 | $ | 26,908,397 | $ | 26,153,553 | $ | 25,886,833 | $ | 24,622,201 | (1) | % | 8 | % |
Total core deposits (1)
| $ | 25,964,358 | $ | 26,029,814 | $ | 25,122,851 | $ | 24,740,621 | $ | 23,298,561 | 0 | % | 11 | % |
| Deposit mix: | ||||||||||||||
| Demand, non-interest bearing | 41 | % | 41 | % | 41 | % | 41 | % | 39 | % | ||||
| Demand, interest bearing | 14 | % | 14 | % | 13 | % | 12 | % | 12 | % | ||||
| Money market | 29 | % | 29 | % | 29 | % | 29 | % | 29 | % | ||||
| Savings | 9 | % | 9 | % | 9 | % | 8 | % | 8 | % | ||||
| Time | 7 | % | 7 | % | 8 | % | 10 | % | 12 | % | ||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
| Number of open accounts: | ||||||||||||||
| Demand, non-interest bearing | 428,181 | 425,337 | 424,626 | 422,792 | 420,050 | |||||||||
| Demand, interest bearing | 66,010 | 70,749 | 71,411 | 72,156 | 72,811 | |||||||||
| Money market | 57,222 | 57,794 | 58,289 | 58,409 | 58,609 | |||||||||
| Savings | 160,449 | 161,698 | 161,902 | 161,432 | 160,192 | |||||||||
| Time | 35,665 | 37,172 | 39,560 | 43,637 | 48,292 | |||||||||
| Total | 747,527 | 752,750 | 755,788 | 758,426 | 759,954 | |||||||||
| Average balance per account: | ||||||||||||||
| Demand, non-interest bearing | $ | 25.7 | $ | 26.1 | $ | 25.2 | $ | 24.8 | $ | 22.9 | ||||
| Demand, interest bearing | 57.2 | 53.1 | 48.5 | 45.0 | 41.9 | |||||||||
| Money market | 133.0 | 134.6 | 129.7 | 129.3 | 122.4 | |||||||||
| Savings | 14.8 | 14.4 | 13.7 | 13.1 | 11.9 | |||||||||
| Time | 50.7 | 51.7 | 55.3 | 56.8 | 59.0 | |||||||||
| Total | $ | 35.6 | $ | 35.7 | $ | 34.6 | $ | 34.1 | $ | 32.4 |
(1) Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 11
| Umpqua Holdings Corporation | ||||||||||||||
| Credit Quality - Non-performing Assets | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Quarter Ended | % Change | |||||||||||||
| (Dollars in thousands) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter | Year over Year | |||||||
| Non-performing assets: | ||||||||||||||
| Loans and leases on non-accrual status | $ | 18,865 | $ | 24,152 | $ | 20,673 | $ | 29,216 | $ | 31,076 | (22) | % | (39) | % |
| Loans and leases past due 90+ days and accruing | 32,336 | 27,490 | 29,144 | 25,612 | 36,361 | 18 | % | (11) | % | |||||
| Total non-performing loans and leases | 51,201 | 51,642 | 49,817 | 54,828 | 67,437 | (1) | % | (24) | % | |||||
| Other real estate owned | 1,868 | 1,868 | 181 | 1,405 | 1,810 | 0 | % | 3 | % | |||||
| Total non-performing assets | $ | 53,069 | $ | 53,510 | $ | 49,998 | $ | 56,233 | $ | 69,247 | (1) | % | (23) | % |
| Performing restructured loans and leases | $ | 6,694 | $ | 9,849 | $ | 13,072 | $ | 9,921 | $ | 14,991 | (32) | % | (55) | % |
| Loans and leases past due 31-89 days | $ | 31,680 | $ | 41,326 | $ | 30,646 | $ | 51,120 | $ | 72,047 | (23) | % | (56) | % |
| Loans and leases past due 31-89 days to total loans and leases | 0.14 | % | 0.19 | % | 0.14 | % | 0.23 | % | 0.33 | % | ||||
| Non-performing loans and leases to total loans and leases | 0.23 | % | 0.24 | % | 0.22 | % | 0.25 | % | 0.31 | % | ||||
| Non-performing assets to total assets | 0.17 | % | 0.17 | % | 0.17 | % | 0.19 | % | 0.24 | % |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 12
| Umpqua Holdings Corporation | ||||||||||||||
| Credit Quality - Allowance for Credit Losses | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Quarter Ended | % Change | |||||||||||||
| (Dollars in thousands) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter | Year over Year | |||||||
| Allowance for credit losses on loans and leases (ACLLL) | ||||||||||||||
| Balance, beginning of period | $ | 257,560 | $ | 279,887 | $ | 311,283 | $ | 328,401 | $ | 345,049 | (8) | % | (25) | % |
| (Recapture) provision for credit losses on loans and leases | (1,751) | (16,132) | (17,775) | 526 | 3,104 | (89) | % | (156) | % | |||||
| Charge-offs | (10,930) | (10,373) | (17,079) | (20,915) | (23,942) | 5 | % | (54) | % | |||||
| Recoveries | 3,533 | 4,178 | 3,458 | 3,271 | 4,190 | (15) | % | (16) | % | |||||
| Net charge-offs | (7,397) | (6,195) | (13,621) | (17,644) | (19,752) | 19 | % | (63) | % | |||||
| Balance, end of period | $ | 248,412 | $ | 257,560 | $ | 279,887 | $ | 311,283 | $ | 328,401 | (4) | % | (24) | % |
| Reserve for unfunded commitments | ||||||||||||||
| Balance, beginning of period | $ | 11,752 | $ | 14,539 | $ | 19,760 | $ | 20,286 | $ | 24,306 | (19) | % | (52) | % |
| Provision (recapture) for credit losses on unfunded commitments | 1,015 | (2,787) | (5,221) | (526) | (4,020) | (136) | % | (125) | % | |||||
| Balance, end of period | 12,767 | 11,752 | 14,539 | 19,760 | 20,286 | 9 | % | (37) | % | |||||
| Total Allowance for credit losses (ACL) | $ | 261,179 | $ | 269,312 | $ | 294,426 | $ | 331,043 | $ | 348,687 | (3) | % | (25) | % |
| Net charge-offs to average loans and leases (annualized) | 0.13 | % | 0.11 | % | 0.25 | % | 0.33 | % | 0.35 | % | ||||
| Recoveries to gross charge-offs | 32.32 | % | 40.28 | % | 20.25 | % | 15.64 | % | 17.50 | % | ||||
| ACLLL to loans and leases | 1.10 | % | 1.17 | % | 1.26 | % | 1.40 | % | 1.51 | % | ||||
| ACL to loans and leases | 1.16 | % | 1.23 | % | 1.33 | % | 1.49 | % | 1.60 | % |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 13
| Umpqua Holdings Corporation | ||||||
| Credit Quality - Allowance for Credit Losses | ||||||
| (Unaudited) | ||||||
| Year Ended | % Change | |||||
| (Dollars in thousands) | Dec 31, 2021 | Dec 31, 2020 | Year over Year | |||
| Allowance for credit losses on loans and leases (ACLLL) | ||||||
| Balance, beginning of period | $ | 328,401 | $ | 157,629 | 108 | % |
| Impact of adoption of CECL | - | 49,999 | nm | |||
| Adjusted balance, beginning of period | 328,401 | 207,628 | 58 | % | ||
| (Recapture) provision for credit losses on loans and leases | (35,132) | 191,875 | (118) | % | ||
| Charge-offs | (59,297) | (84,496) | (30) | % | ||
| Recoveries | 14,440 | 13,394 | 8 | % | ||
| Net charge-offs | (44,857) | (71,102) | (37) | % | ||
| Balance, end of period | $ | 248,412 | $ | 328,401 | (24) | % |
| Reserve for unfunded commitments | ||||||
| Balance, beginning of period | $ | 20,286 | $ | 5,106 | 297 | % |
| Impact of adoption of CECL | - | 3,238 | nm | |||
| Adjusted balance, beginning of period | 20,286 | 8,344 | 143 | % | ||
| (Recapture) provision for credit losses on unfunded commitments | (7,519) | 11,942 | (163) | % | ||
| Balance, end of period | 12,767 | 20,286 | (37) | % | ||
| Total Allowance for credit losses (ACL) | $ | 261,179 | $ | 348,687 | (25) | % |
| Net charge-offs to average loans and leases | 0.20 | % | 0.32 | % | ||
| Recoveries to gross charge-offs | 24.35 | % | 15.85 | % | ||
| nm = not meaningful |
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 14
| Umpqua Holdings Corporation | ||||||||||||
| Selected Ratios | ||||||||||||
| (Unaudited) | ||||||||||||
| Quarter Ended | % Change | |||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter |
Year over Year | ||||||
| Average Rates: | ||||||||||||
| Yield on loans held for sale | 3.18 | % | 3.15 | % | 3.18 | % | 2.75 | % | 3.19 | % | 0.03 | (0.01) |
| Yield on loans and leases | 3.94 | % | 4.02 | % | 3.99 | % | 4.02 | % | 4.24 | % | (0.08) | (0.30) |
| Yield on taxable investments | 1.81 | % | 1.90 | % | 1.87 | % | 1.86 | % | 1.77 | % | (0.09) | 0.04 |
Yield on tax-exempt investments (1)
| 2.96 | % | 3.01 | % | 3.02 | % | 3.03 | % | 3.08 | % | (0.05) | (0.12) |
| Yield on interest bearing cash and temporary investments | 0.15 | % | 0.15 | % | 0.11 | % | 0.10 | % | 0.10 | % | - | 0.05 |
Total yield on earning assets (1)
| 3.25 | % | 3.32 | % | 3.35 | % | 3.41 | % | 3.64 | % | (0.07) | (0.39) |
| Cost of interest bearing deposits | 0.11 | % | 0.13 | % | 0.18 | % | 0.29 | % | 0.38 | % | (0.02) | (0.27) |
| Cost of securities sold under agreements | ||||||||||||
| to repurchase and fed funds purchased | 0.04 | % | 0.07 | % | 0.06 | % | 0.08 | % | 0.09 | % | (0.03) | (0.05) |
| Cost of borrowings | 3.19 | % | 1.88 | % | 1.62 | % | 1.33 | % | 1.18 | % | 1.31 | 2.01 |
| Cost of junior subordinated debentures | 3.09 | % | 3.18 | % | 3.30 | % | 3.60 | % | 3.73 | % | (0.09) | (0.64) |
| Total cost of interest bearing liabilities | 0.18 | % | 0.20 | % | 0.27 | % | 0.38 | % | 0.49 | % | (0.02) | (0.31) |
Net interest spread (1)
| 3.07 | % | 3.12 | % | 3.08 | % | 3.03 | % | 3.15 | % | (0.05) | (0.08) |
Net interest margin (1)
| 3.15 | % | 3.21 | % | 3.20 | % | 3.18 | % | 3.35 | % | (0.06) | (0.20) |
| Performance Ratios: | ||||||||||||
| Return on average assets | 1.13 | % | 1.40 | % | 1.54 | % | 1.49 | % | 2.04 | % | (0.27) | (0.91) |
| Return on average tangible assets | 1.14 | % | 1.40 | % | 1.55 | % | 1.49 | % | 2.04 | % | (0.26) | (0.90) |
| Return on average common equity | 12.90 | % | 15.82 | % | 17.25 | % | 16.33 | % | 22.92 | % | (2.92) | (10.02) |
| Return on average tangible common equity | 12.94 | % | 15.88 | % | 17.33 | % | 16.43 | % | 23.07 | % | (2.94) | (10.13) |
| Efficiency ratio - Consolidated | 63.10 | % | 59.44 | % | 58.96 | % | 56.74 | % | 58.82 | % | 3.66 | 4.28 |
| Efficiency ratio - Bank | 62.35 | % | 58.54 | % | 58.31 | % | 55.51 | % | 57.77 | % | 3.81 | 4.58 |
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 15
| Umpqua Holdings Corporation | |||||
| Selected Ratios | |||||
| (Unaudited) | |||||
| Year Ended | % Change | ||||
| Dec 31, 2021 | Dec 31, 2020 | Year over Year | |||
| Average Rates: | |||||
| Yield on loans held for sale | 3.03 | % | 3.49 | % | (0.46) |
| Yield on loans and leases | 3.99 | % | 4.22 | % | (0.23) |
| Yield on taxable investments | 1.86 | % | 1.80 | % | 0.06 |
Yield on tax-exempt investments (1)
| 3.00 | % | 3.12 | % | (0.12) |
| Yield on interest bearing cash and temporary investments | 0.13 | % | 0.29 | % | (0.16) |
Total yield on earning assets (1)
| 3.33 | % | 3.71 | % | (0.38) |
| Cost of interest bearing deposits | 0.18 | % | 0.65 | % | (0.47) |
| Cost of securities sold under agreements | |||||
| to repurchase and fed funds purchased | 0.06 | % | 0.21 | % | (0.15) |
| Cost of borrowings | 1.45 | % | 1.37 | % | 0.08 |
| Cost of junior subordinated debentures | 3.28 | % | 4.67 | % | (1.39) |
| Total cost of interest bearing liabilities | 0.26 | % | 0.75 | % | (0.49) |
Net interest spread (1)
| 3.07 | % | 2.96 | % | 0.11 |
Net interest margin (1)
| 3.18 | % | 3.23 | % | (0.05) |
| Performance Ratios: | |||||
| Return on average assets | 1.39 | % | (5.22 | %) | 6.61 |
| Return on average tangible assets | 1.39 | % | (5.30 | %) | 6.69 |
| Return on average common equity | 15.56 | % | (51.08 | %) | 66.64 |
| Return on average tangible common equity | 15.63 | % | (60.34 | %) | 75.97 |
| Efficiency ratio - Consolidated | 59.53 | % | 196.47 | % | (136.94) |
| Efficiency ratio - Bank | 58.65 | % | 195.33 | % | (136.68) |
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 16
|
Umpqua Holdings Corporation Average Balances | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Quarter Ended | % Change | |||||||||||||
| (Dollars in thousands) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter | Year over Year | |||||||
| Temporary investments and interest bearing cash | $ | 3,190,380 | $ | 3,224,846 | $ | 2,835,474 | $ | 2,483,451 | $ | 2,066,572 | (1) | % | 54 | % |
| Investment securities, taxable | 3,681,650 | 3,436,895 | 3,210,771 | 2,945,896 | 2,850,550 | 7 | % | 29 | % | |||||
| Investment securities, tax-exempt | 247,183 | 245,904 | 247,282 | 252,741 | 245,997 | 1 | % | 0 | % | |||||
| Loans held for sale | 366,043 | 465,805 | 468,960 | 703,557 | 696,688 | (21) | % | (47) | % | |||||
| Loans and leases | 22,098,818 | 21,864,387 | 22,040,794 | 21,692,639 | 22,138,283 | 1 | % | 0 | % | |||||
| Total interest earning assets | 29,584,074 | 29,237,837 | 28,803,281 | 28,078,284 | 27,998,090 | 1 | % | 6 | % | |||||
| Goodwill and other intangible assets, net | 9,491 | 10,609 | 12,615 | 15,598 | 16,775 | (11) | % | (43) | % | |||||
| Total assets | 30,886,378 | 30,614,374 | 30,156,017 | 29,392,490 | 29,396,311 | 1 | % | 5 | % | |||||
| Non-interest bearing demand deposits | 11,219,766 | 10,960,686 | 10,582,197 | 9,897,749 | 9,587,081 | 2 | % | 17 | % | |||||
| Interest bearing deposits | 15,690,870 | 15,679,755 | 15,474,743 | 15,166,198 | 15,165,049 | 0 | % | 3 | % | |||||
| Total deposits | 26,910,636 | 26,640,441 | 26,056,940 | 25,063,947 | 24,752,130 | 1 | % | 9 | % | |||||
| Interest bearing liabilities | 16,569,585 | 16,583,803 | 16,500,106 | 16,444,694 | 16,822,808 | 0 | % | (2) | % | |||||
| Shareholders' equity - common | 2,717,753 | 2,709,641 | 2,700,010 | 2,674,871 | 2,615,676 | 0 | % | 4 | % | |||||
Tangible common equity (1)
| 2,708,262 | 2,699,032 | 2,687,395 | 2,659,273 | 2,598,901 | 0 | % | 4 | % |
|
Umpqua Holdings Corporation Average Balances | ||||||
| (Unaudited) | ||||||
| Year Ended | % Change | |||||
| (Dollars in thousands) | Dec 31, 2021 | Dec 31, 2020 | Year over Year | |||
| Temporary investments and interest bearing cash | $ | 2,936,273 | $ | 1,637,440 | 79 | % |
| Investment securities, taxable | 3,321,142 | 2,796,581 | 19 | % | ||
| Investment securities, tax-exempt | 248,256 | 240,054 | 3 | % | ||
| Loans held for sale | 500,070 | 588,058 | (15) | % | ||
| Loans and leases | 21,925,108 | 22,082,359 | (1) | % | ||
| Total interest earning assets | 28,930,849 | 27,344,492 | 6 | % | ||
| Goodwill and other intangible assets, net | 12,057 | 457,550 | (97) | % | ||
| Total assets | 30,267,372 | 29,211,733 | 4 | % | ||
| Non-interest bearing demand deposits | 10,669,531 | 8,576,436 | 24 | % | ||
| Interest bearing deposits | 15,504,814 | 15,527,924 | 0 | % | ||
| Total deposits | 26,174,345 | 24,104,360 | 9 | % | ||
| Interest bearing liabilities | 16,525,052 | 17,237,888 | (4) | % | ||
| Shareholders' equity - common | 2,700,711 | 2,982,458 | (9) | % | ||
Tangible common equity (1)
| 2,688,654 | 2,524,908 | 6 | % |
(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 Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 17
|
Umpqua Holdings Corporation Average Rates and Balances | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Quarter Ended | ||||||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income or Expense | Average Yields or Rates | Average Balance | Interest Income or Expense | Average Yields or Rates | Average Balance | Interest Income or Expense | Average Yields or Rates | |||||||||
| INTEREST-EARNING ASSETS: | ||||||||||||||||||
| Loans held for sale | $ | 366,043 | $ | 2,907 | 3.18 | % | $ | 465,805 | $ | 3,672 | 3.15 | % | $ | 696,688 | $ | 5,554 | 3.19 | % |
| Loans and leases (1) | 22,098,818 | 218,594 | 3.94 | % | 21,864,387 | 220,731 | 4.02 | % | 22,138,283 | 235,261 | 4.24 | % | ||||||
| Taxable securities | 3,681,650 | 16,668 | 1.81 | % | 3,436,895 | 16,315 | 1.90 | % | 2,850,550 | 12,610 | 1.77 | % | ||||||
| Non-taxable securities (2) | 247,183 | 1,831 | 2.96 | % | 245,904 | 1,848 | 3.01 | % | 245,997 | 1,893 | 3.08 | % | ||||||
| Temporary investments and interest-bearing cash | 3,190,380 | 1,229 | 0.15 | % | 3,224,846 | 1,237 | 0.15 | % | 2,066,572 | 531 | 0.10 | % | ||||||
| Total interest-earning assets | 29,584,074 | $ | 241,229 | 3.25 | % | 29,237,837 | $ | 243,803 | 3.32 | % | 27,998,090 | $ | 255,849 | 3.64 | % | |||
| Other assets | 1,302,304 | 1,376,537 | 1,398,221 | |||||||||||||||
| Total assets | $ | 30,886,378 | $ | 30,614,374 | $ | 29,396,311 | ||||||||||||
| INTEREST-BEARING LIABILITIES: | ||||||||||||||||||
| Interest-bearing demand deposits | $ | 3,765,212 | $ | 524 | 0.06 | % | $ | 3,564,040 | $ | 468 | 0.05 | % | $ | 3,014,292 | $ | 448 | 0.06 | % |
| Money market deposits | 7,717,844 | 1,448 | 0.07 | % | 7,800,144 | 1,492 | 0.08 | % | 7,210,906 | 1,731 | 0.10 | % | ||||||
| Savings deposits | 2,342,865 | 206 | 0.03 | % | 2,284,077 | 206 | 0.04 | % | 1,882,866 | 183 | 0.04 | % | ||||||
| Time deposits | 1,864,949 | 2,179 | 0.46 | % | 2,031,494 | 2,934 | 0.57 | % | 3,056,985 | 12,205 | 1.59 | % | ||||||
| Total interest-bearing deposits | 15,690,870 | 4,357 | 0.11 | % | 15,679,755 | 5,100 | 0.13 | % | 15,165,049 | 14,567 | 0.38 | % | ||||||
| Repurchase agreements and federal funds purchased | 484,891 | 48 | 0.04 | % | 496,822 | 88 | 0.07 | % | 388,361 | 93 | 0.09 | % | ||||||
| Borrowings | 6,353 | 51 | 3.19 | % | 31,500 | 149 | 1.88 | % | 934,006 | 2,765 | 1.18 | % | ||||||
| Junior subordinated debentures | 387,471 | 3,019 | 3.09 | % | 375,726 | 3,014 | 3.18 | % | 335,392 | 3,147 | 3.73 | % | ||||||
| Total interest-bearing liabilities | 16,569,585 | $ | 7,475 | 0.18 | % | 16,583,803 | $ | 8,351 | 0.20 | % | 16,822,808 | $ | 20,572 | 0.49 | % | |||
| Non-interest-bearing deposits | 11,219,766 | 10,960,686 | 9,587,081 | |||||||||||||||
| Other liabilities | 379,274 | 360,244 | 370,746 | |||||||||||||||
| Total liabilities | 28,168,625 | 27,904,733 | 26,780,635 | |||||||||||||||
| Common equity | 2,717,753 | 2,709,641 | 2,615,676 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 30,886,378 | $ | 30,614,374 | $ | 29,396,311 | ||||||||||||
| NET INTEREST INCOME | $ | 233,754 | $ | 235,452 | $ | 235,277 | ||||||||||||
| NET INTEREST SPREAD | 3.07 | % | 3.12 | % | 3.15 | % | ||||||||||||
| NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) | 3.15 | % | 3.21 | % | 3.35 | % |
(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 $375,000 for the three months ended December 31, 2021 as compared to $377,000 for September 30, 2021and$370,000 for December 31, 2020.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 18
|
Umpqua Holdings Corporation Average Rates and Balances | ||||||||||||
| (Unaudited) | ||||||||||||
| (dollars in thousands) | Year Ended | |||||||||||
| December 31, 2021 | December 31, 2020 | |||||||||||
| Average Balance | Interest Income or Expense | Average Yields or Rates | Average Balance | Interest Income or Expense | Average Yields or Rates | |||||||
| INTEREST-EARNING ASSETS: | ||||||||||||
| Loans held for sale | $ | 500,070 | $ | 15,149 | 3.03 | % | $ | 588,058 | $ | 20,509 | 3.49 | % |
Loans and leases (1)
| 21,925,108 | 875,366 | 3.99 | % | 22,082,359 | 930,930 | 4.22 | % | ||||
| Taxable securities | 3,321,142 | 61,717 | 1.86 | % | 2,796,581 | 50,354 | 1.80 | % | ||||
| Non-taxable securities (2) | 248,256 | 7,458 | 3.00 | % | 240,054 | 7,500 | 3.12 | % | ||||
| Temporary investments and interest-bearing cash | 2,936,273 | 3,864 | 0.13 | % | 1,637,440 | 4,739 | 0.29 | % | ||||
| Total interest-earning assets | 28,930,849 | $ | 963,554 | 3.33 | % | 27,344,492 | $ | 1,014,032 | 3.71 | % | ||
| Other assets | 1,336,523 | 1,867,241 | ||||||||||
| Total assets | $ | 30,267,372 | $ | 29,211,733 | ||||||||
| INTEREST-BEARING LIABILITIES: | ||||||||||||
| Interest-bearing demand deposits | $ | 3,462,035 | $ | 1,865 | 0.05 | % | $ | 2,754,417 | $ | 5,712 | 0.21 | % |
| Money market deposits | 7,624,707 | 5,964 | 0.08 | % | 7,193,470 | 19,811 | 0.28 | % | ||||
| Savings deposits | 2,200,608 | 729 | 0.03 | % | 1,697,353 | 801 | 0.05 | % | ||||
| Time deposits | 2,217,464 | 18,593 | 0.84 | % | 3,882,684 | 73,876 | 1.90 | % | ||||
| Total interest-bearing deposits | 15,504,814 | 27,151 | 0.18 | % | 15,527,924 | 100,200 | 0.65 | % | ||||
| Repurchase agreements and federal funds purchased | 454,994 | 280 | 0.06 | % | 370,091 | 766 | 0.21 | % | ||||
| Borrowings | 195,985 | 2,838 | 1.45 | % | 1,014,240 | 13,921 | 1.37 | % | ||||
| Junior subordinated debentures | 369,259 | 12,127 | 3.28 | % | 325,633 | 15,221 | 4.67 | % | ||||
| Total interest-bearing liabilities | 16,525,052 | $ | 42,396 | 0.26 | % | 17,237,888 | $ | 130,108 | 0.75 | % | ||
| Non-interest-bearing deposits | 10,669,531 | 8,576,436 | ||||||||||
| Other liabilities | 372,078 | 414,951 | ||||||||||
| Total liabilities | 27,566,661 | 26,229,275 | ||||||||||
| Common equity | 2,700,711 | 2,982,458 | ||||||||||
| Total liabilities and shareholders' equity | $ | 30,267,372 | $ | 29,211,733 | ||||||||
| NET INTEREST INCOME | $ | 921,158 | $ | 883,924 | ||||||||
| NET INTEREST SPREAD | 3.07 | % | 2.96 | % | ||||||||
| NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) | 3.18 | % | 3.23 | % |
(1)Non-accrual loans and leases are included in the average balance.
(2)Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $1.5 million for the twelve months ended December 31, 2021 as compared to $1.4 million for the same period in 2020.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 19
|
Umpqua Holdings Corporation Segments | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Core Banking | Quarter Ended | % Change | ||||||||||||
(in thousands)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter | Year over Year | |||||||
| Net interest income | $ | 231,250 | $ | 232,348 | $ | 226,915 | $ | 217,574 | $ | 230,430 | 0 | % | 0 | % |
| (Recapture) provision for credit losses | (736) | (18,919) | (22,996) | - | 29 | (96) | % | nm | ||||||
| Non-interest income | ||||||||||||||
| Gain on sale of debt securities, net | 4 | - | - | 4 | - | nm | nm | |||||||
| (Loss) gain on equity securities, net | (466) | (343) | 4 | (706) | (173) | 36 | % | 169 | % | |||||
| (Loss) gain on swap derivatives, net | (303) | 1,429 | (4,481) | 11,750 | 3,955 | (121) | % | (108) | % | |||||
| Change in fair value of certain loans held for investment | (2,672) | 3,432 | 2,782 | (510) | - | (178) | % | nm | ||||||
| Non-interest income (excluding above items) | 42,812 | 34,849 | 48,151 | 32,913 | 40,921 | 23 | % | 5 | % | |||||
| Total non-interest income | 39,375 | 39,367 | 46,456 | 43,451 | 44,703 | 0 | % | (12) | % | |||||
| Non-interest expense | ||||||||||||||
| Merger related expenses | 15,183 | - | - | - | - | nm | nm | |||||||
| Exit and disposal costs | 3,022 | 3,813 | 4,728 | 1,200 | 725 | (21) | % | 317 | % | |||||
| Non-interest expense (excluding above items) | 150,587 | 146,931 | 146,877 | 145,161 | 171,634 | 2 | % | (12) | % | |||||
Allocated expenses, net (1)
| 4,314 | 3,680 | 970 | (790) | (3,565) | 17 | % | (221) | % | |||||
| Total non-interest expense | 173,106 | 154,424 | 152,575 | 145,571 | 168,794 | 12 | % | 3 | % | |||||
| Income before income taxes | 98,255 | 136,210 | 143,792 | 115,454 | 106,310 | (28) | % | (8) | % | |||||
| Provision (benefit) for income taxes | 24,067 | 33,945 | 35,630 | 28,106 | (13,508) | (29) | % | (278) | % | |||||
| Net income | $ | 74,188 | $ | 102,265 | $ | 108,162 | $ | 87,348 | $ | 119,818 | (27) | % | (38) | % |
| Effective Tax Rate | 24 | % | 25 | % | 25 | % | 24 | % | (13 | %) | ||||
| Efficiency Ratio | 64 | % | 57 | % | 56 | % | 56 | % | 61 | % | ||||
| Total assets | $ | 30,155,058 | $ | 30,419,108 | $ | 29,720,182 | $ | 29,529,769 | $ | 28,438,813 | (1) | % | 6 | % |
| Loans held for sale | $ | - | $ | - | $ | - | $ | - | $ | 78,146 | 0 | % | (100) | % |
| Total loans and leases | $ | 22,553,180 | $ | 21,969,940 | $ | 22,143,739 | $ | 22,160,860 | $ | 21,779,367 | 3 | % | 4 | % |
| Total deposits | $ | 26,370,568 | $ | 26,510,938 | $ | 25,820,776 | $ | 25,425,339 | $ | 24,200,012 | (1) | % | 9 | % |
| Key Rates, end of period: | ||||||||||||||
| 10 year CMT | 1.52 | % | 1.52 | % | 1.45 | % | 1.74 | % | 0.93 | % | ||||
| FHLMC 30 year fixed | 3.11 | % | 3.01 | % | 2.98 | % | 3.18 | % | 2.67 | % | ||||
| nm = not meaningful | ||||||||||||||
(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.
|
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 20
|
Umpqua Holdings Corporation Segments - Continued | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Mortgage Banking | Quarter Ended | % Change | ||||||||||||
(in thousands)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Seq. Quarter | Year over Year | |||||||
| Net interest income | $ | 2,129 | $ | 2,726 | $ | 2,848 | $ | 3,857 | $ | 4,477 | (22) | % | (52) | % |
| Provision for credit losses | - | - | - | - | - | nm | nm | |||||||
| Non-interest income | ||||||||||||||
| Residential mortgage banking revenue: | ||||||||||||||
| Origination and sale | 23,624 | 30,293 | 41,367 | 62,505 | 83,388 | (22) | % | (72) | % | |||||
| Servicing | 9,457 | 9,172 | 9,120 | 9,087 | 9,497 | 3 | % | 0 | % | |||||
| Change in fair value of MSR asset: | ||||||||||||||
| Changes due to collection/realization of expected cash flows over time | (5,311) | (4,681) | (4,366) | (4,545) | (4,431) | 13 | % | 20 | % | |||||
| Changes due to valuation inputs or assumptions | 15,415 | (634) | (1,678) | (2,014) | (9,426) | nm | (264) | % | ||||||
| Non-interest income (excluding above items) | 178 | 188 | 176 | 316 | 229 | (5) | % | (22) | % | |||||
| Total non-interest income | 43,363 | 34,338 | 44,619 | 65,349 | 79,257 | 26 | % | (45) | % | |||||
| Non-interest expense | ||||||||||||||
| Non-interest expense | 30,919 | 33,009 | 37,795 | 41,231 | 38,953 | (6) | % | (21) | % | |||||
Allocated expenses, net(1)
| (4,314) | (3,680) | (970) | 790 | 3,565 | 17 | % | (221) | % | |||||
| Total non-interest expense | 26,605 | 29,329 | 36,825 | 42,021 | 42,518 | (9) | % | (37) | % | |||||
| Income before income taxes | 18,887 | 7,735 | 10,642 | 27,185 | 41,216 | 144 | % | (54) | % | |||||
| Provision for income taxes | 4,721 | 1,934 | 2,661 | 6,796 | 10,304 | 144 | % | (54) | % | |||||
| Net income | $ | 14,166 | $ | 5,801 | $ | 7,981 | $ | 20,389 | $ | 30,912 | 144 | % | (54) | % |
| Effective Tax Rate | 25 | % | 25 | % | 25 | % | 25 | % | 25 | % | ||||
| Efficiency Ratio | 58 | % | 79 | % | 78 | % | 61 | % | 51 | % | ||||
| Total assets | $ | 485,878 | $ | 472,371 | $ | 564,783 | $ | 506,911 | $ | 796,362 | 3 | % | (39) | % |
| Loans held for sale | $ | 353,105 | $ | 352,466 | $ | 429,052 | $ | 376,481 | $ | 688,079 | 0 | % | (49) | % |
| Total deposits | $ | 224,117 | $ | 397,459 | $ | 332,777 | $ | 461,494 | $ | 422,189 | (44) | % | (47) | % |
| LHFS Production Statistics: | ||||||||||||||
| Closed loan volume for-sale | $ | 871,268 | $ | 987,281 | $ | 1,253,023 | $ | 1,635,532 | $ | 1,769,432 | (12) | % | (51) | % |
| Gain on sale margin | 2.71 | % | 3.07 | % | 3.30 | % | 3.82 | % | 4.71 | % | ||||
| Direct LHFS expense | $ | 18,150 | $ | 19,958 | $ | 25,459 | $ | 31,151 | $ | 33,210 | (9) | % | (45) | % |
| Direct LHFS expenses as % of volume | 2.08 | % | 2.02 | % | 2.03 | % | 1.90 | % | 1.88 | % | ||||
| MSR Statistics: | ||||||||||||||
| Residential mortgage loans serviced for others | $ | 12,755,671 | $ | 12,853,291 | $ | 12,897,032 | $ | 13,030,467 | $ | 13,026,720 | (1) | % | (2) | % |
| MSR, net | $ | 123,615 | $ | 105,834 | $ | 102,699 | $ | 100,413 | $ | 92,907 | 17 | % | 33 | % |
| MSR as % of serviced portfolio | 0.97 | % | 0.82 | % | 0.80 | % | 0.77 | % | 0.71 | % | ||||
| Key Rates, end of period: | ||||||||||||||
| 10 year CMT | 1.52 | % | 1.52 | % | 1.45 | % | 1.74 | % | 0.93 | % | ||||
| FHLMC 30 year fixed | 3.11 | % | 3.01 | % | 2.98 | % | 3.18 | % | 2.67 | % | ||||
| 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.
Umpqua Reports Fourth Quarter and Full-Year 2021 Results
January 19, 2022
Page 21
|
Umpqua Holdings Corporation Segments | ||||||||||||
| (Unaudited) | ||||||||||||
(in thousands)
| Core Banking | Mortgage Banking | ||||||||||
| Year Ended | % Change | Year Ended | % Change | |||||||||
| Dec 31, 2021 | Dec 31, 2020 | Year over Year | Dec 31, 2021 | Dec 31, 2020 | Year over Year | |||||||
| Net interest income | $ | 908,087 | $ | 866,996 | 5 | % | $ | 11,560 | $ | 15,523 | (26) | % |
| (Recapture) provision for credit losses | (42,651) | 204,861 | (121) | % | - | - | nm | |||||
| Non-interest income | ||||||||||||
| Residential mortgage banking revenue: | ||||||||||||
| Origination and sale | - | - | nm | 157,789 | 308,219 | (49) | % | |||||
| Servicing | - | - | nm | 36,836 | 35,706 | 3 | % | |||||
| Change in fair value of MSR asset: | ||||||||||||
| Changes due to collection/realization of expected cash flows over time | - | - | nm | (18,903) | (19,680) | (4) | % | |||||
| Changes due to valuation inputs or assumptions | - | - | nm | 11,089 | (53,423) | (121) | % | |||||
| Gain on sale of debt securities, net | 8 | 190 | (96) | % | - | - | nm | |||||
| (Loss) gain on equity securities, net | (1,511) | 769 | (296) | % | - | - | nm | |||||
| Gain (loss) on swap derivatives, net | 8,395 | (9,409) | (189) | % | - | - | nm | |||||
| Change in fair value of certain loans held for investment | 3,032 | - | nm | - | - | nm | ||||||
| Non-interest income (excluding above items) | 158,725 | 148,884 | 7 | % | 858 | 753 | 14 | % | ||||
| Total non-interest income | 168,649 | 140,434 | 20 | % | 187,669 | 271,575 | (31) | % | ||||
| Non-interest expense | ||||||||||||
| Goodwill Impairment | - | 1,784,936 | (100) | % | - | - | nm | |||||
| Merger related expenses | 15,183 | - | nm | - | - | nm | ||||||
| Exit and disposal costs | 12,763 | 2,589 | 393 | % | - | - | nm | |||||
| Non-interest expense (excluding above items) | 589,556 | 609,497 | (3) | % | 142,954 | 149,065 | (4) | % | ||||
Allocated expenses, net (1)
| 8,174 | (11,557) | (171) | % | (8,174) | 11,557 | (171) | % | ||||
| Total non-interest expense | 625,676 | 2,385,465 | (74) | % | 134,780 | 160,622 | (16) | % | ||||
| Income (loss) before income taxes | 493,711 | (1,582,896) | (131) | % | 64,449 | 126,476 | (49) | % | ||||
| Provision for income taxes | 121,748 | 35,381 | 244 | % | 16,112 | 31,619 | (49) | % | ||||
| Net income (loss) | $ | 371,963 | $ | (1,618,277) | (123) | % | $ | 48,337 | $ | 94,857 | (49) | % |
| Effective Tax Rate | 25 | % | (2) | % | 25 | % | 25 | % | ||||
| Efficiency Ratio | 58 | % | 237 | % | 68 | % | 56 | % | ||||
| LHFS Production Statistics: | ||||||||||||
| Closed loan volume for-sale | $ | 4,747,104 | $ | 6,666,500 | (29) | % | ||||||
| Gain on sale margin | 3.32 | % | 4.62 | % | ||||||||
| Direct LHFS expense | $ | 94,718 | $ | 126,990 | (25) | % | ||||||
| Direct LHFS expenses as % of volume | 2.00 | % | 1.90 | % | ||||||||
| 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.
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Umpqua Holdings Corporation published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 21:45:10 UTC.
