Umpqua : Reports Quarterly And Annual Results

PORTLAND, Ore., Jan. 23, 2019 /PRNewswire/ -- Umpqua Holdings Corporation (NASDAQ: UMPQ) (the "Company") reported net earnings available to common shareholders of $80.3 million for the fourth quarter of 2018, compared to $91.0 million for the third quarter of 2018 and $75.2 million for the fourth quarter of 2017.  Earnings per diluted common share were $0.36 for the fourth quarter of 2018, compared to $0.41 for the third quarter of 2018 and $0.34 for the fourth quarter of 2017.

For the twelve months ended December 31, 2018, the Company reported net earnings available to common shareholders of $316.2 million, or $1.43 per diluted common share, up from $242.3 million, or $1.10 per diluted common share, for the twelve months ended December 31, 2017.

"We finished 2018 on a strong note, delivering another quarter of solid financial performance to cap a year in which we made terrific progress implementing the priorities laid out in our Next Gen strategy," said Cort O'Haver, president and CEO of Umpqua Holdings Corporation.  "The significant improvement in Umpqua's 2018 financial performance reflects our success implementing key Next Gen initiatives, which included generating strong loan and deposit growth and higher fee income to offset the decrease in mortgage banking revenues while reducing expenses. Building on that momentum, we're focused on achieving the remaining cost savings and continuing to advance our human digital strategy, which we're confident will continue to drive sustained profitability and long-term shareholder value."

Notable items that impacted the fourth quarter 2018 financial results included:

• $5.8 million net gain related to the previously announced sale of substantially all of the assets of Pivotus, Inc.
• $4.0 million in professional fees related to operational excellence initiatives, compared to $3.5 million in the prior quarter.
• $13.1 million loss on the fair value of the MSR asset attributable to the decrease in long-term interest rates during the quarter.  This compares to $0.2 million gain in the prior quarter and $2.0 million gain in the same period of the prior year.
• $3.0 million loss on the fair value of the debt capital market swap derivatives attributable to the decrease in long-term interest rates during the quarter.  This compares to gains of $0.2 million in both the prior quarter and in the same period of the prior year.
• $0.8 million of exit or disposal costs, related primarily to planned store consolidations, compared to $1.0 million in the prior quarter and $3.1 million in the same period of the prior year.
• $0.4 million unrealized holding gain on equity securities, compared to a loss of $0.5 million in the prior quarter and no gain or loss recorded in the same period of the prior year.

Full-Year 2018 Highlights (compared to prior year):

• Gross loan and lease growth of $1.4 billion, or 7%;
• Deposit growth of $1.2 billion, or 6%;
• Net interest income increased by $73.0 million, driven primarily by higher average balances of loans and leases, along with a 10 basis point increase in net interest margin;
• Provision for loan and lease losses increased by $8.7 million primarily due to loan and lease growth and higher net charge-offs;
• Non-interest income increased by $0.9 million, reflecting higher levels of other fee income, the gain related to Pivotus, Inc. (see notable items above) and the net loss on junior subordinated debentures carried at fair value no longer being recognized in earnings, partially offset by lower net mortgage banking revenue and lower portfolio loan sale gains;
• Non-interest expense decreased by $8.4 million, driven primarily by lower salaries and benefits expense and lower merger-related expense, partially offset by higher services expense;
• Paid dividends of $0.82 per common share (versus $0.68 per share in the prior year) and repurchased 327,000 shares of stock; and
• Book value increased by 2%, or $0.39 per common share, and tangible book value¹ increased by 4%, or $0.42 per common share.

 

1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.

Fourth Quarter 2018 Highlights (compared to prior quarter):

• Gross loan and lease growth of $568.6 million, or 11% annualized;
• Deposit growth of $244.7 million, or 5% annualized;
• Net interest income increased by $6.0 million, attributable to higher average balances of loans and leases, along with an increase in average yields on loans and leases and a lower level of premium amortization on the investment securities portfolio, partially offset by higher funding costs;
• Provision for loan and lease losses increased by $5.5 million, driven primarily by the strong loan and lease growth during the quarter and a seven basis point increase in net charge-offs to 0.32% of average loans and leases (annualized);
• Non-interest income decreased by $15.6 million, reflecting the linked quarter declines in the fair value of the MSR asset and debt capital market swap derivatives (see notable items above), partially offset by the gain related to Pivotus, Inc. (see notable items above);
• Non-interest expense decreased by $0.8 million, driven primarily by lower salaries and benefits and FDIC assessments, partially offset by higher other expense and loss on other real estate owned;
• Non-performing assets to total assets decreased by one basis point to 0.36%;
• Estimated total risk-based capital ratio of 13.4% and estimated Tier 1 common to risk weighted assets ratio of 10.7%; and
• Declared quarterly cash dividend of $0.21 per common share;

Balance Sheet
Total consolidated assets were $26.9 billion as of December 31, 2018, compared to $26.6 billion as of September 30, 2018 and $25.7 billion as of December 31, 2017.  Including secured off-balance sheet lines of credit, total available liquidity was $10.4 billion as of December 31, 2018, representing 39% of total assets and 49% of total deposits.

Gross loans and leases were $20.4 billion as of December 31, 2018, an increase of $568.6 million from $19.9 billion as of September 30, 2018.  This increase reflects balanced growth across the Company's commercial, commercial real estate and residential real estate portfolios.

Total deposits were $21.1 billion as of December 31, 2018, an increase of $244.7 million from $20.9 billion as of September 30, 2018.  This increase was primarily attributable to growth in money market and time accounts, partially offset by a decline in non-interest demand deposits due to the timing of year-end deposit inflows.

Net Interest Income
Net interest income was $247.4 million for the fourth quarter of 2018, up $6.0 million from the prior quarter.  This increase was driven primarily by higher average loans and leases, resulting from the strong growth during the quarter, and a lower level of premium amortization on the investment securities portfolio.  These were partially offset by lower accretion related to acquired loans, which decreased to $4.2 million for the fourth quarter of 2018, compared to $4.9 million in the prior quarter.

The Company's net interest margin was 4.15% for the fourth quarter of 2018, up 6 basis points from 4.09% for the third quarter of 2018.  This increase was driven primarily by the lower level of premium amortization on the investment securities portfolio and an increase in average yields on loans and leases, partially offset by higher funding costs.

Credit Quality
The allowance for loan and lease losses was $144.9 million, or 0.71% of loans and leases, as of December 31, 2018.  The provision for loan and lease losses was $17.2 million for the fourth quarter of 2018, an increase of $5.5 million from the prior quarter level driven primarily by the growth in the loan and lease portfolio and higher net charge-offs.

Net charge-offs increased by 7 basis points from the prior quarter to 0.32% of average loans and leases for the fourth quarter of 2018 (annualized).  As of December 31, 2018, non-performing assets decreased to 0.36% of total assets, from 0.37% as of September 30, 2018 and December 31, 2017.

Non-interest Income
Non-interest income was $56.8 million for the fourth quarter of 2018, down $15.6 million from the prior quarter.  This decrease reflects the decline in fair value for both the MSR asset and the debt capital market swap derivatives (see notable items above), partially offset by the gain related to Pivotus, Inc. (see notable items above).

Net revenue from the origination and sale of residential mortgages was $16.7 million for the fourth quarter of 2018, down $4.3 million from the prior quarter.  For-sale mortgage origination volume decreased by 22% from the prior quarter, while the home lending gain on sale margin increased by 6 basis points to 2.83% for the fourth quarter of 2018.  Of the current quarter's mortgage production, 80% related to purchase activity, compared to 82% for the prior quarter and 67% for the same period in the prior year.

Non-interest Expense
Non-interest expense was $178.5 million for the fourth quarter of 2018, down $0.8 million from the prior quarter level.     This decrease was attributable to lower mortgage banking-related expense, consistent with the decrease in mortgage originations, additional savings associated with the operational excellence initiatives and lower FDIC assessments.  These were partially offset by higher group insurance, annual incentive compensation expenses and loss on other real estate owned.

Capital
As of December 31, 2018, the Company's book value per common share increased to $18.42 from $18.18 in the prior quarter, and its tangible book value per common share¹ increased to $10.19 from $9.95 in the prior quarter.  During the fourth quarter of 2018, the Company declared a dividend of $0.21 per share.

The Company's estimated total risk-based capital ratio was 13.4% and its estimated Tier 1 common equity to risk weighted assets ratio was 10.7% as of December 31, 2018.  The Company remains above current "well-capitalized" regulatory minimums.  The regulatory capital ratios as of December 31, 2018 are estimates, pending completion and filing of the Company's regulatory reports.

1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.

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

Management believes tangible common equity and the tangible common equity ratio are 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, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017
Total shareholders' equity		$	4,056,442			$	4,003,893			$	3,981,087			$	3,969,766			$	3,969,367
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		23,964				25,506				27,047				28,589				30,130
Tangible common shareholders' equity		$	2,244,827			$	2,190,736			$	2,166,389			$	2,153,526			$	2,151,586
Total assets		$	26,939,781			$	26,615,067			$	26,480,601			$	25,816,401			$	25,680,447
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		23,964				25,506				27,047				28,589				30,130
Tangible assets		$	25,128,166			$	24,801,910			$	24,665,903			$	24,000,161			$	23,862,666
Common shares outstanding at period end		220,255				220,238				220,205				220,461				220,149
Total shareholders' equity to total assets ratio		15.06		%		15.04		%		15.03		%		15.38		%		15.46		%
Tangible common equity ratio		8.93		%		8.83		%		8.78		%		8.97		%		9.02		%
Book value per common share		$	18.42			$	18.18			$	18.08			$	18.01			$	18.03
Tangible book value per common share		$	10.19			$	9.95			$	9.84			$	9.77			$	9.77

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

Earnings Conference Call Information
The Company will host its fourth quarter 2018 earnings conference call on Thursday, January 24, 2019, 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 2018 financial results.  There will be a live question-and-answer session following the presentation.  To join the call, please dial [phone] ten minutes prior to the start time and enter conference ID: 2359675.  A re-broadcast will be available approximately two hours after the call by dialing [phone] and entering conference ID 2359675.  The earnings conference call will also be available as an audiocast, which can be accessed on the Company's investor relations page at umpquabank.com.

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

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
		Quarter Ended																				% Change
(In thousands, except per share data)		Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Seq.  Quarter			Year over Year
Interest income:
Loans and leases		$	254,093			$	246,410			$	242,123			$	229,488			$	225,538			3	%		13	%
Interest and dividends on investments:
Taxable		27,381				24,435				8,499				15,699				14,857				12	%		84	%
Exempt from federal income tax		2,135				2,048				2,057				2,128				2,121				4	%		1	%
Dividends		538				549				433				468				386				(2)	%		39	%
Temporary investments and interest bearing deposits		2,621				2,800				2,080				1,164				1,565				(6)	%		67	%
Total interest income		286,768				276,242				255,192				248,947				244,467				4	%		17	%
Interest expense:
Deposits		30,124				25,692				21,259				15,610				13,241				17	%		128	%
Securities sold under agreement to repurchase and federal funds purchased		185				103				155				63				43				80	%		330	%
Term debt		3,326				3,439				3,478				3,361				3,496				(3)	%		(5)	%
Junior subordinated debentures		5,743				5,640				5,400				4,932				4,734				2	%		21	%
Total interest expense		39,378				34,874				30,292				23,966				21,514				13	%		83	%
Net interest income		247,390				241,368				224,900				224,981				222,953				2	%		11	%
Provision for loan and lease losses		17,219				11,711				13,319				13,656				12,928				47	%		33	%
Non-interest income:
Service charges on deposits		16,035				15,574				15,520				14,995				15,413				3	%		4	%
Brokerage revenue		4,178				3,947				4,161				4,194				4,226				6	%		(1)	%
Residential mortgage banking revenue, net		15,150				31,484				33,163				38,438				42,118				(52)	%		(64)	%
Gain on sale of investment securities, net		—				—				14				—				—				0	%		0	%
Unrealized holding gains (losses) on equity securities		410				(462)				(1,432)				—				—				(189)	%		nm
Gain on loan sales, net		2,484				2,772				1,348				1,230				3,688				(10)	%		(33)	%
Loss on junior subordinated debentures carried at fair value		—				—				—				—				(10,010)				0	%		(100)	%
BOLI income		2,116				2,051				2,060				2,070				2,015				3	%		5	%
Other income		16,438				17,022				16,817				17,640				13,000				(3)	%		26	%
Total non-interest income		56,811				72,388				71,651				78,567				70,450				(22)	%		(19)	%
Non-interest expense:
Salaries and employee benefits		102,109				103,575				113,340				106,551				114,414				(1)	%		(11)	%
Occupancy and equipment, net		35,949				36,530				37,584				38,661				37,269				(2)	%		(4)	%
Intangible amortization		1,542				1,541				1,542				1,541				1,689				0	%		(9)	%
FDIC assessments		2,619				4,303				4,692				4,480				2,075				(39)	%		26	%
Loss (gain) on other real estate owned, net		1,125				(128)				(92)				(38)				(83)				(979)	%		(1,455)	%
Other expenses		35,144				33,471				38,506				34,918				37,422				5	%		(6)	%
Total non-interest expense		178,488				179,292				195,572				186,113				192,786				0	%		(7)	%
Income before provision for income taxes		108,494				122,753				87,660				103,779				87,689				(12)	%		24	%
Provision for income taxes		28,183				31,772				21,661				24,807				12,438				(11)	%		127	%
Net income		80,311				90,981				65,999				78,972				75,251				(12)	%		7	%
Dividends and undistributed earnings allocated to participating securities		1				5				4				6				15				(80)	%		(93)	%
Net earnings available to common shareholders		$	80,310			$	90,976			$	65,995			$	78,966			$	75,236			(12)	%		7	%
Weighted average basic shares outstanding		220,247				220,224				220,283				220,370				220,194				0	%		0	%
Weighted average diluted shares outstanding		220,668				220,620				220,647				220,825				220,873				0	%		0	%
Earnings per common share – basic		$	0.36			$	0.41			$	0.30			$	0.36			$	0.34			(12)	%		6	%
Earnings per common share – diluted		$	0.36			$	0.41			$	0.30			$	0.36			$	0.34			(12)	%		6	%
nm = not meaningful

 

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
		Year Ended								% Change
(In thousands, except per share data)		Dec 31, 2018				Dec 31, 2017				Year over Year
Interest income:
Loans and leases		$	972,114			$	871,318			12	%
Interest and dividends on investments:
Taxable		76,014				57,987				31	%
Exempt from federal income tax		8,368				8,725				(4)	%
Dividends		1,988				1,491				33	%
Temporary investments and interest bearing deposits		8,665				4,380				98	%
Total interest income		1,067,149				943,901				13	%
Interest expense:
Deposits		92,685				45,582				103	%
Securities sold under agreement to repurchase and federal funds purchased		506				475				7	%
Term debt		13,604				14,159				(4)	%
Junior subordinated debentures		21,715				18,000				21	%
Total interest expense		128,510				78,216				64	%
Net interest income		938,639				865,685				8	%
Provision for loan and lease losses		55,905				47,254				18	%
Non-interest income:
Service charges on deposits		62,124				61,469				1	%
Brokerage revenue		16,480				16,083				2	%
Residential mortgage banking revenue, net		118,235				136,276				(13)	%
Gain on sale of investment securities, net		14				27				(48)	%
Unrealized holding losses on equity securities		(1,484)				—				nm
Gain on loan sales, net		7,834				18,012				(57)	%
Loss on junior subordinated debentures carried at fair value		—				(14,727)				(100)	%
BOLI income		8,297				8,214				1	%
Other income		67,917				53,133				28	%
Total non-interest income		279,417				278,487				0	%
Non-interest expense:
Salaries and employee benefits		425,575				438,180				(3)	%
Occupancy and equipment, net		148,724				150,545				(1)	%
Intangible amortization		6,166				6,756				(9)	%
FDIC assessments		16,094				15,014				7	%
Loss (gain) on other real estate owned, net		867				(557)				(256)	%
Merger related expenses		—				9,324				(100)	%
Other expenses		142,039				128,613				10	%
Total non-interest expense		739,465				747,875				(1)	%
Income before provision for income taxes		422,686				349,043				21	%
Provision for income taxes		106,423				106,730				0	%
Net income		316,263				242,313				31	%
Dividends and undistributed earnings allocated to participating securities		16				55				(71)	%
Net earnings available to common shareholders		$	316,247			$	242,258			31	%
Weighted average basic shares outstanding		220,280				220,251				0	%
Weighted average diluted shares outstanding		220,737				220,836				0	%
Earnings per common share – basic		$	1.44			$	1.10			31	%
Earnings per common share – diluted		$	1.43			$	1.10			30	%
nm = not meaningful

 

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																					% Change
(In thousands, except per share data)	Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Seq.  Quarter			Year over Year
Assets:
Cash and due from banks	$	335,419			$	308,938			$	314,513			$	304,681			$	330,856			9	%		1	%
Interest bearing cash and temporary investments	287,218				570,321				488,499				264,508				303,424				(50)	%		(5)	%
Investment securities:
Equity and other, at fair value	61,841				62,454				64,297				63,295				12,255				(1)	%		405	%
Available for sale, at fair value	2,977,108				2,864,394				2,854,398				2,947,414				3,065,769				4	%		(3)	%
Held to maturity, at amortized cost	3,606				3,672				3,586				3,667				3,803				(2)	%		(5)	%
Loans held for sale, at fair value	166,461				289,537				432,642				299,739				259,518				(43)	%		(36)	%
Loans and leases	20,422,666				19,854,033				19,639,494				19,255,347				19,019,192				3	%		7	%
Allowance for loan and lease losses	(144,871)				(144,026)				(144,556)				(141,933)				(140,608)				1	%		3	%
Net loans and leases	20,277,795				19,710,007				19,494,938				19,113,414				18,878,584				3	%		7	%
Restricted equity securities	40,268				40,269				42,320				43,501				43,508				0	%		(7)	%
Premises and equipment, net	227,423				237,456				245,954				259,354				269,182				(4)	%		(16)	%
Goodwill	1,787,651				1,787,651				1,787,651				1,787,651				1,787,651				0	%		0	%
Other intangible assets, net	23,964				25,506				27,047				28,589				30,130				(6)	%		(20)	%
Residential mortgage servicing rights, at fair value	169,025				175,038				166,217				164,760				153,151				(3)	%		10	%
Other real estate owned	10,958				11,774				12,101				13,055				11,734				(7)	%		(7)	%
Bank owned life insurance	313,626				311,922				309,844				307,745				306,864				1	%		2	%
Other assets	257,418				216,128				236,594				215,028				224,018				19	%		15	%
Total assets	$	26,939,781			$	26,615,067			$	26,480,601			$	25,816,401			$	25,680,447			1	%		5	%
Liabilities:
Deposits	$	21,137,486			$	20,892,774			$	20,744,526			$	20,106,856			$	19,948,300			1	%		6	%
Securities sold under agreements to repurchase	297,151				286,975				273,666				291,984				294,299				4	%		1	%
Term debt	751,788				751,764				801,739				801,868				802,357				0	%		(6)	%
Junior subordinated debentures, at fair value	300,870				282,846				280,669				278,410				277,155				6	%		9	%
Junior subordinated debentures, at amortized cost	88,724				88,781				88,838				88,895				100,609				0	%		(12)	%
Deferred tax liability, net	25,846				22,413				27,255				24,151				21,930				15	%		18	%
Other liabilities	281,474				285,621				282,821				254,471				266,430				(1)	%		6	%
Total liabilities	22,883,339				22,611,174				22,499,514				21,846,635				21,711,080				1	%		5	%
Shareholders' equity:
Common stock	3,512,874				3,510,949				3,509,146				3,515,506				3,517,258				0	%		0	%
Retained earnings	602,482				568,619				524,031				502,214				477,101				6	%		26	%
Accumulated other comprehensive loss	(58,914)				(75,675)				(52,090)				(47,954)				(24,992)				(22)	%		136	%
Total shareholders' equity	4,056,442				4,003,893				3,981,087				3,969,766				3,969,367				1	%		2	%
Total liabilities and shareholders' equity	$	26,939,781			$	26,615,067			$	26,480,601			$	25,816,401			$	25,680,447			1	%		5	%
Common shares outstanding at period end	220,255				220,238				220,205				220,461				220,149				0	%		0	%
Book value per common share	$	18.42			$	18.18			$	18.08			$	18.01			$	18.03			1	%		2	%
Tangible book value per common share	$	10.19			$	9.95			$	9.84			$	9.77			$	9.77			2	%		4	%
Tangible equity - common	$	2,244,827			$	2,190,736			$	2,166,389			$	2,153,526			$	2,151,586			2	%		4	%
Tangible common equity to tangible assets	8.93		%		8.83		%		8.78		%		8.97		%		9.02		%		0.10			(0.09)

 

Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)
(Dollars in thousands)		Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net		$	3,573,065			$	3,527,357			$	3,518,982			$	3,519,366			$	3,483,197			1	%		3	%
Owner occupied term, net		2,480,371				2,474,845				2,473,734				2,464,705				2,476,654				0	%		0	%
Multifamily, net		3,304,763				3,225,538				3,185,923				3,103,794				3,060,616				2	%		8	%
Construction & development, net		736,254				646,684				568,562				522,670				540,696				14	%		36	%
Residential development, net		196,890				198,518				183,114				179,954				165,941				(1)	%		19	%
Commercial:
Term, net		2,232,923				2,149,376				2,106,658				2,025,052				1,944,925				4	%		15	%
Lines of credit & other, net		1,169,525				1,133,508				1,152,853				1,147,123				1,166,275				3	%		0	%
Leases & equipment finance, net		1,330,155				1,282,128				1,265,843				1,228,709				1,167,503				4	%		14	%
Residential real estate:
Mortgage, net		3,635,073				3,468,569				3,405,775				3,275,088				3,182,888				5	%		14	%
Home equity loans & lines, net		1,176,477				1,143,351				1,132,329				1,103,048				1,097,877				3	%		7	%
Consumer & other, net		587,170				604,159				645,721				685,838				732,620				(3)	%		(20)	%
Total, net of deferred fees and costs		$	20,422,666			$	19,854,033			$	19,639,494			$	19,255,347			$	19,019,192			3	%		7	%
Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net		17		%		18		%		18		%		18		%		18		%
Owner occupied term, net		12		%		13		%		13		%		13		%		13		%
Multifamily, net		16		%		16		%		16		%		16		%		16		%
Construction & development, net		4		%		3		%		3		%		3		%		3		%
Residential development, net		1		%		1		%		1		%		1		%		1		%
Commercial:
Term, net		11		%		11		%		11		%		11		%		10		%
Lines of credit & other, net		6		%		6		%		6		%		6		%		6		%
Leases & equipment finance, net		6		%		6		%		6		%		6		%		6		%
Residential real estate:
Mortgage, net		18		%		17		%		17		%		17		%		17		%
Home equity loans & lines, net		6		%		6		%		6		%		6		%		6		%
Consumer & other, net		3		%		3		%		3		%		3		%		4		%
Total		100		%		100		%		100		%		100		%		100		%

 

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)		Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Deposits:
Demand, non-interest bearing		$	6,667,467			$	6,859,411			$	6,819,325			$	6,699,399			$	6,505,628			(3)	%		2	%
Demand, interest bearing		2,340,471				2,320,560				2,321,691				2,354,873				2,384,133				1	%		(2)	%
Money market		6,645,390				6,325,808				6,161,907				6,546,704				7,037,891				5	%		(6)	%
Savings		1,492,685				1,499,872				1,465,154				1,482,560				1,446,860				0	%		3	%
Time		3,991,473				3,887,123				3,976,449				3,023,320				2,573,788				3	%		55	%
Total		$	21,137,486			$	20,892,774			$	20,744,526			$	20,106,856			$	19,948,300			1	%		6	%
Total core deposits (1)		$	18,190,402			$	18,012,992			$	17,743,888			$	18,007,169			$	18,263,802			1	%		0	%
Deposit mix:
Demand, non-interest bearing		32		%		33		%		33		%		33		%		33		%
Demand, interest bearing		11		%		11		%		11		%		12		%		12		%
Money market		31		%		30		%		30		%		33		%		35		%
Savings		7		%		7		%		7		%		7		%		7		%
Time		19		%		19		%		19		%		15		%		13		%
Total		100		%		100		%		100		%		100		%		100		%
Number of open accounts:
Demand, non-interest bearing		406,240				404,913				402,771				399,721				397,427
Demand, interest bearing		77,099				77,546				77,918				78,181				78,853
Money market		56,196				55,895				55,393				54,752				55,175
Savings		161,656				162,387				162,414				162,841				162,453
Time		54,388				52,482				51,073				48,529				46,861
Total		755,579				753,223				749,569				744,024				740,769
Average balance per account:
Demand, non-interest bearing		$	16.4			$	16.9			$	16.9			$	16.8			$	16.4
Demand, interest bearing		30.4				29.9				29.8				30.1				30.2
Money market		118.3				113.2				111.2				119.6				127.6
Savings		9.2				9.2				9.0				9.1				8.9
Time		73.4				74.1				77.9				62.3				54.9
Total		$	28.0			$	27.7			$	27.7			$	27.0			$	26.9

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

 

Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Seq. Quarter			Year over Year
Non-performing assets:
Loans and leases on non-accrual status		$	50,823			$	54,059			$	43,392			$	45,702			$	51,355			(6)	%		(1)	%
Loans and leases past due 90+ days and accruing (1)		36,444				33,812				34,535				25,456				30,963				8	%		18	%
Total non-performing loans and leases		87,267				87,871				77,927				71,158				82,318				(1)	%		6	%
Other real estate owned		10,958				11,774				12,101				13,055				11,734				(7)	%		(7)	%
Total non-preforming assets		$	98,225			$	99,645			$	90,028			$	84,213			$	94,052			(1)	%		4	%
Performing restructured loans and leases		$	13,924			$	14,531			$	27,167			$	31,677			$	32,168			(4)	%		(57)	%
Loans and leases past due 31-89 days		$	37,373			$	33,825			$	44,734			$	38,569			$	43,853			10	%		(15)	%
Loans and leases past due 31-89 days to total loans and leases		0.18		%		0.17		%		0.23		%		0.20		%		0.23		%
Non-performing loans and leases to total loans and leases (1)		0.43		%		0.44		%		0.40		%		0.37		%		0.43		%
Non-performing assets to total assets (1)		0.36		%		0.37		%		0.34		%		0.33		%		0.37		%

(1)	Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $8.9 million, $8.0 million, $9.2 million, $6.3 million, and $12.4 million at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.

 

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Seq. Quarter			Year over Year
Allowance for loan and lease losses:
Balance beginning of period		$	144,026			$	144,556			$	141,933			$	140,608			$	139,503
Provision for loan and lease losses		17,219				11,711				13,319				13,656				12,928				47	%		33	%
Charge-offs		(19,527)				(15,896)				(14,815)				(15,812)				(15,751)				23	%		24	%
Recoveries		3,153				3,655				4,119				3,481				3,928				(14)	%		(20)	%
Net charge-offs		(16,374)				(12,241)				(10,696)				(12,331)				(11,823)				34	%		38	%
Total allowance for loan and lease losses		144,871				144,026				144,556				141,933				140,608				1	%		3	%
Reserve for unfunded commitments		4,523				4,294				4,130				4,129				3,963				5	%		14	%
Total allowance for credit losses		$	149,394			$	148,320			$	148,686			$	146,062			$	144,571			1	%		3	%
Net charge-offs to average loans and leases (annualized)		0.32		%		0.25		%		0.22		%		0.26		%		0.25		%
Recoveries to gross charge-offs		16.15		%		22.99		%		27.80		%		22.01		%		24.94		%
Allowance for loan and lease losses to loans and leases		0.71		%		0.73		%		0.74		%		0.74		%		0.74		%
Allowance for credit losses to loans and leases		0.73		%		0.75		%		0.76		%		0.76		%		0.76		%

 

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
		Year Ended								% Change
(Dollars in thousands)		Dec 31, 2018				Dec 31, 2017				Year over Year
Allowance for credit losses:
Balance beginning of period		$	140,608			$	133,984
Provision for loan and lease losses		55,905				47,254				18	%
Charge-offs		(66,050)				(55,919)				18	%
Recoveries		14,408				15,289				(6)	%
Net charge-offs		(51,642)				(40,630)				27	%
Total allowance for loan and lease losses		144,871				140,608				3	%
Reserve for unfunded commitments		4,523				3,963				14	%
Total allowance for credit losses		$	149,394			$	144,571			3	%
Net charge-offs to average loans and leases		0.26		%		0.22		%
Recoveries to gross charge-offs		21.81		%		27.34		%

 

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Quarter Ended															% Change
		Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Seq. Quarter			Year over Year
Average Rates:
Yield on loans held for sale		5.81	%		5.27	%		4.86	%		4.21	%		3.99	%		0.54			1.82
Yield on loans and leases		4.97	%		4.89	%		4.91	%		4.80	%		4.72	%		0.08			0.25
Yield on taxable investments		4.11	%		3.72	%		1.31	%		2.31	%		2.17	%		0.39			1.94
Yield on tax-exempt investments (1)		3.70	%		3.61	%		3.64	%		3.68	%		4.49	%		0.09			(0.79)
Yield on interest bearing cash and temporary investments		2.25	%		1.99	%		1.82	%		1.55	%		1.22	%		0.26			1.03
Total yield on earning assets (1)		4.81	%		4.67	%		4.41	%		4.43	%		4.31	%		0.14			0.50
Cost of interest bearing deposits		0.85	%		0.73	%		0.62	%		0.47	%		0.40	%		0.12			0.45
Cost of securities sold under agreements to repurchase and fed funds purchased		0.26	%		0.15	%		0.22	%		0.08	%		0.06	%		0.11			0.20
Cost of term debt		1.75	%		1.73	%		1.74	%		1.70	%		1.67	%		0.02			0.08
Cost of junior subordinated debentures		6.13	%		6.06	%		5.89	%		5.36	%		5.11	%		0.07			1.02
Total cost of interest bearing liabilities		1.00	%		0.90	%		0.80	%		0.65	%		0.58	%		0.10			0.42
Net interest spread (1)		3.81	%		3.77	%		3.61	%		3.78	%		3.73	%		0.04			0.08
Net interest margin (1)		4.15	%		4.09	%		3.89	%		4.00	%		3.93	%		0.06			0.22
Performance Ratios:
Return on average assets		1.19	%		1.36	%		1.02	%		1.25	%		1.17	%		(0.17)			0.02
Return on average tangible assets		1.28	%		1.46	%		1.09	%		1.35	%		1.26	%		(0.18)			0.02
Return on average common equity		7.90	%		9.00	%		6.64	%		8.06	%		7.54	%		(1.10)			0.36
Return on average tangible common equity		14.34	%		16.42	%		12.18	%		14.84	%		13.93	%		(2.08)			0.41
Efficiency ratio – Consolidated		58.58	%		57.06	%		65.84	%		61.21	%		65.46	%		1.52			(6.88)
Efficiency ratio – Bank		57.67	%		54.70	%		63.04	%		59.24	%		61.61	%		2.97			(3.94)

(1)	Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate for 2018 and a 35% tax rate for 2017.

 

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Year Ended						% Change
		Dec 31, 2018			Dec 31, 2017			Year over Year
Average Rates:
Yield on loans held for sale		5.02	%		3.75	%		1.27
Yield on loans and leases		4.90	%		4.72	%		0.18
Yield on taxable investments		2.86	%		2.09	%		0.77
Yield on tax-exempt investments (1)		3.66	%		4.62	%		(0.96)
Yield on temporary investments and interest bearing cash		1.94	%		1.04	%		0.90
Total yield on earning assets (1)		4.59	%		4.29	%		0.30
Cost of interest bearing deposits		0.67	%		0.35	%		0.32
Cost of securities sold under agreements to repurchase and fed funds purchased		0.18	%		0.14	%		0.04
Cost of term debt		1.73	%		1.67	%		0.06
Cost of junior subordinated debentures		5.86	%		4.93	%		0.93
Total cost of interest bearing liabilities		0.84	%		0.53	%		0.31
Net interest spread (1)		3.75	%		3.76	%		(0.01)
Net interest margin (1)		4.04	%		3.94	%		0.10
Performance Ratios:
Return on average assets		1.21	%		0.97	%		0.24
Return on average tangible assets		1.30	%		1.04	%		0.26
Return on average common equity		7.90	%		6.17	%		1.73
Return on average tangible common equity		14.45	%		11.49	%		2.96
Efficiency ratio – Consolidated		60.61	%		65.11	%		(4.50)
Efficiency ratio – Bank		58.60	%		62.48	%		(3.88)

(1)	Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate for 2018 and a 35% tax rate for 2017.

 

Umpqua Holdings Corporation Average Balances
(Unaudited)
	Quarter Ended																		% Change
(Dollars in thousands)	Dec 31, 2018			Sep 30, 2018			Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Seq. Quarter			Year over Year
Temporary investments and interest bearing cash	462,621			558,597			$	458,133			$	303,670			$	509,187			(17)	%		(9)	%
Investment securities, taxable	2,716,616			2,687,635			2,723,406				2,793,449				2,804,530				1	%		(3)	%
Investment securities, tax-exempt	282,998			278,937			279,158				286,603				286,345				1	%		(1)	%
Loans held for sale	238,958			320,494			326,427				267,231				370,564				(25)	%		(36)	%
Loans and leases	20,051,674			19,709,113			19,387,537				19,089,713				18,703,202				2	%		7	%
Total interest earning assets	23,752,867			23,554,776			23,174,661				22,740,666				22,673,828				1	%		5	%
Goodwill and other intangible assets, net	1,812,487			1,814,000			1,815,529				1,817,068				1,818,730				0	%		0	%
Total assets	26,672,224			26,461,526			26,076,142				25,625,869				25,599,516				1	%		4	%
Non-interest bearing demand deposits	6,828,730			6,865,676			6,645,689				6,450,364				6,611,493				(1)	%		3	%
Interest bearing deposits	14,138,852			13,897,141			13,745,089				13,492,965				13,281,502				2	%		6	%
Total deposits	20,967,582			20,762,817			20,390,778				19,943,329				19,892,995				1	%		5	%
Interest bearing liabilities	15,547,250			15,331,529			15,199,900				14,971,759				14,790,883				1	%		5	%
Shareholders' equity - common	4,035,125			4,011,856			3,988,825				3,974,788				3,960,987				1	%		2	%
Tangible common equity (1)	2,222,638			2,197,856			2,173,296				2,157,720				2,142,257				1	%		4	%

 

Umpqua Holdings Corporation Average Balances
(Unaudited)
		Year Ended								% Change
(Dollars in thousands)		Dec 31, 2018				Dec 31, 2017				Year over Year
Temporary investments and interest bearing cash		$	446,500			$	421,836			6	%
Investment securities, taxable		2,729,950				2,851,136				(4)	%
Investment securities, tax-exempt		281,906				286,605				(2)	%
Loans held for sale		288,288				383,802				(25)	%
Loans and leases		19,562,369				18,169,449				8	%
Total interest earning assets		23,309,013				22,112,828				5	%
Goodwill and other intangible assets, net		1,814,756				1,821,223				0	%
Total assets		26,210,933				25,074,144				5	%
Non-interest bearing demand deposits		6,699,112				6,202,835				8	%
Interest bearing deposits		13,820,497				13,148,903				5	%
Total deposits		20,519,609				19,351,738				6	%
Interest bearing liabilities		15,264,375				14,704,841				4	%
Shareholders' equity - common		4,002,700				3,929,566				2	%
Tangible common equity (1)		2,187,944				2,108,343				4	%

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

 

Umpqua Holdings Corporation Average Rates and Balances
(unaudited)
(dollars in thousands)	Quarter Ended
	December 31, 2018											September 30, 2018											December 31, 2017
	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	$	238,958			$	3,473			5.81	%		$	320,494			$	4,220			5.27	%		$	370,564			$	3,696			3.99	%
Loans and leases (1)	20,051,674				250,620				4.97	%		19,709,113				242,190				4.89	%		18,703,202				221,842				4.72	%
Taxable securities	2,716,616				27,919				4.11	%		2,687,635				24,984				3.72	%		2,804,530				15,243				2.17	%
Non-taxable securities (2)	282,998				2,619				3.70	%		278,937				2,519				3.61	%		286,345				3,216				4.49	%
Temporary investments and interest-bearing cash	462,621				2,621				2.25	%		558,597				2,800				1.99	%		509,187				1,565				1.22	%
Total interest-earning assets	23,752,867				$	287,252			4.81	%		23,554,776				$	276,713			4.67	%		22,673,828				$	245,562			4.31	%
Allowance for loan and lease losses	(144,057)											(145,873)											(141,701)
Other assets	3,063,414											3,052,623											3,067,389
Total assets	$	26,672,224										$	26,461,526										$	25,599,516
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,319,613			$	2,659			0.45	%		$	2,369,092			$	2,241			0.38	%		$	2,351,848			$	1,215			0.21	%
Money market deposits	6,371,127				9,170				0.57	%		6,150,199				6,820				0.44	%		6,790,140				4,102				0.24	%
Savings deposits	1,488,768				490				0.13	%		1,483,687				452				0.12	%		1,439,036				253				0.07	%
Time deposits	3,959,344				17,805				1.78	%		3,894,163				16,179				1.65	%		2,700,478				7,671				1.13	%
Total interest-bearing deposits	14,138,852				30,124				0.85	%		13,897,141				25,692				0.73	%		13,281,502				13,241				0.40	%
Repurchase agreements and federal funds purchased	284,847				185				0.26	%		278,131				103				0.15	%		312,285				43				0.06	%
Term debt	751,773				3,326				1.75	%		787,074				3,439				1.73	%		829,502				3,496				1.67	%
Junior subordinated debentures	371,778				5,743				6.13	%		369,183				5,640				6.06	%		367,594				4,734				5.11	%
Total interest-bearing liabilities	15,547,250				$	39,378			1.00	%		15,331,529				$	34,874			0.90	%		14,790,883				$	21,514			0.58	%
Non-interest-bearing deposits	6,828,730											6,865,676											6,611,493
Other liabilities	261,119											252,465											236,153
Total liabilities	22,637,099											22,449,670											21,638,529
Common equity	4,035,125											4,011,856											3,960,987
Total liabilities and shareholders' equity	$	26,672,224										$	26,461,526										$	25,599,516
NET INTEREST INCOME					$	247,874										$	241,839										$	224,048
NET INTEREST SPREAD									3.81	%										3.77	%										3.73	%
AVERAGE YIELD ON EARNING ASSETS (1), (2)									4.81	%										4.67	%										4.31	%
INTEREST EXPENSE TO EARNING ASSETS									0.66	%										0.58	%										0.38	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									4.15	%										4.09	%										3.93	%

(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 for 2018 and a 35% tax rate for 2017. The amount of such adjustment was an addition to recorded income of approximately $484,000 for the three months ended December 31, 2018 as compared to $471,000 for September 30, 2018 and $1.1 million for December 31, 2017.

 

Umpqua Holdings Corporation
Average Rates and Balances
(unaudited)
(dollars in thousands)	Twelve months ended
	December 31, 2018											December 31, 2017
	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	$	288,288			$	14,475			5.02	%		$	383,802			$	14,374			3.75	%
Loans and leases (1)	19,562,369				957,639				4.90	%		18,169,449				856,944				4.72	%
Taxable securities	2,729,950				78,002				2.86	%		2,851,136				59,478				2.09	%
Non-taxable securities (2)	281,906				10,316				3.66	%		286,605				13,244				4.62	%
Temporary investments and interest-bearing cash	446,500				8,665				1.94	%		421,836				4,380				1.04	%
Total interest-earning assets	23,309,013				$	1,069,097			4.59	%		22,112,828				$	948,420			4.29	%
Allowance for loan and lease losses	(144,243)											(138,587)
Other assets	3,046,163											3,099,903
Total assets	$	26,210,933										$	25,074,144
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,333,662			$	7,675			0.33	%		$	2,322,194			$	3,725			0.16	%
Money market deposits	6,438,175				27,599				0.43	%		6,741,983				13,069				0.19	%
Savings deposits	1,473,134				1,356				0.09	%		1,412,039				699				0.05	%
Time deposits	3,575,526				56,055				1.57	%		2,672,687				28,089				1.05	%
Total interest-bearing deposits	13,820,497				92,685				0.67	%		13,148,903				45,582				0.35	%
Repurchase agreements and federal funds purchased	287,767				506				0.18	%		344,200				475				0.14	%
Term debt	785,593				13,604				1.73	%		846,542				14,159				1.67	%
Junior subordinated debentures	370,518				21,715				5.86	%		365,196				18,000				4.93	%
Total interest-bearing liabilities	15,264,375				$	128,510			0.84	%		14,704,841				$	78,216			0.53	%
Non-interest-bearing deposits	6,699,112											6,202,835
Other liabilities	244,746											236,902
Total liabilities	22,208,233											21,144,578
Common equity	4,002,700											3,929,566
Total liabilities and shareholders' equity	$	26,210,933										$	25,074,144
NET INTEREST INCOME					$	940,587										$	870,204
NET INTEREST SPREAD									3.75	%										3.76	%
AVERAGE YIELD ON EARNING ASSETS (1), (2)									4.59	%										4.29	%
INTEREST EXPENSE TO EARNING ASSETS									0.55	%										0.35	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									4.04	%										3.94	%

(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 for 2018 and a 35% tax rate for 2017. The amount of such adjustment was an addition to recorded income of approximately $1.9 million for the twelve months ended December 31, 2018 as compared to $4.5 million for the same period in 2017.

 

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Dec 31, 2018				Sep 30, 2018				Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Seq. Quarter			Year over Year
Residential mortgage servicing rights:
Residential mortgage loans serviced for others		$	15,978,885			$	15,810,455			$	15,508,182			$	15,442,915			$	15,336,597			1	%		4	%
MSR asset, at fair value		169,025				175,038				166,217				164,760				153,151				(3)	%		10	%
MSR as % of serviced portfolio		1.06		%		1.11		%		1.07		%		1.07		%		1.00		%
Residential mortgage banking revenue:
Origination and sale		$	16,665			$	20,983			$	28,159			$	22,837			$	29,864			(21)	%		(44)	%
Servicing		11,555				10,302				10,407				10,522				10,287				12	%		12	%
Change in fair value of MSR asset		(13,070)				199				(5,403)				5,079				1,967				nm			(764)	%
Total		$	15,150			$	31,484			$	33,163			$	38,438			$	42,118			(52)	%		(64)	%
Closed loan volume:
Closed loan volume - portfolio		$	312,524			$	323,941			$	294,581			$	237,783			$	265,718			(4)	%		18	%
Closed loan volume - for-sale		589,355				756,924				839,489				687,226				850,453				(22)	%		(31)	%
Closed loan volume - total		$	901,879			$	1,080,865			$	1,134,070			$	925,009			$	1,116,171			(17)	%		(19)	%
Gain on sale margin:
Based on for-sale volume		2.83		%		2.77		%		3.35		%		3.32		%		3.51		%		0.06			(0.68)
		Year Ended								% Change
		Dec 31, 2018				Dec 31, 2017				Year over Year
Residential mortgage banking revenue:
Origination and sale		$	88,644			$	119,680			(26)		%
Servicing		42,786				39,863				7		%
Change in fair value of MSR asset		(13,195)				(23,267)				(43)		%
Total		$	118,235			$	136,276			(13)		%
Closed loan volume:
Closed loan volume - portfolio		$	1,168,829			$	1,159,436			1		%
Closed loan volume - for-sale		2,872,994				3,414,431				(16)		%
Closed loan volume - total		$	4,041,823			$	4,573,867			(12)		%
Gain on sale margin:
Based on for-sale volume		3.09		%		3.51		%		(0.42)
nm = not meaningful

 

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SOURCE Umpqua Holdings Corporation