Allowance for Loan and Lease Loss and Credit Quality (Tables)

6 Months Ended

Jun. 30, 2018

Activity In The Non-Covered Allowance For Loan And Lease Losses

The following tables summarize activity related to the allowance for loan and lease losses by loan and lease portfolio segment for the three and six months ended June 30, 2018 and 2017:



(in thousands)	Three Months Ended June 30, 2018
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	46,005		$	64,626		$	19,833		$	11,469		$	141,933
Charge-offs	(362		)	(12,869		)	(460		)	(1,124		)	(14,815		)
Recoveries	289			3,171			98			561			4,119
Provision	1,353			10,837			804			325			13,319
Balance, end of period	$	47,285		$	65,765		$	20,275		$	11,231		$	144,556

(in thousands)	Three Months Ended June 30, 2017
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	49,006		$	59,117		$	17,966		$	10,203		$	136,292
Charge-offs	(809		)	(10,696		)	(407		)	(2,032		)	(13,944		)
Recoveries	1,457			1,511			113			781			3,862
(Recapture) provision	(2,240		)	10,125			379			2,393			10,657
Balance, end of period	$	47,414		$	60,057		$	18,051		$	11,345		$	136,867



(in thousands)	Six Months Ended June 30, 2018
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	45,765		$	63,305		$	19,360		$	12,178		$	140,608
Charge-offs	(673		)	(26,344		)	(706		)	(2,904		)	(30,627		)
Recoveries	506			5,624			301			1,169			7,600
Provision	1,687			23,180			1,320			788			26,975
Balance, end of period	$	47,285		$	65,765		$	20,275		$	11,231		$	144,556

(in thousands)	Six Months Ended June 30, 2017
	Commercial Real Estate			Commercial			Residential			Consumer & Other			Total
Balance, beginning of period	$	47,795		$	58,840		$	17,946		$	9,403		$	133,984
Charge-offs	(1,148		)	(20,800		)	(617		)	(4,381		)	(26,946		)
Recoveries	1,857			3,541			310			1,792			7,500
(Recapture) provision	(1,090		)	18,476			412			4,531			22,329
Balance, end of period	$	47,414		$	60,057		$	18,051		$	11,345		$	136,867

The following tables present the allowance and recorded investment in loans and leases by portfolio segment and balances individually or collectively evaluated for impairment as of June 30, 2018 and 2017:



(in thousands)	June 30, 2018
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	44,668	$	65,378	$	19,902	$	11,190	$	141,138
Individually evaluated for impairment	814		7		—		—		821
Loans acquired with deteriorated credit quality	1,803		380		373		41		2,597
Total	$	47,285	$	65,765	$	20,275	$	11,231	$	144,556
Loans and leases:
Collectively evaluated for impairment	$	9,776,975	$	4,504,361	$	4,508,961	$	645,310	$	19,435,607
Individually evaluated for impairment	28,786		17,225		—		—		46,011
Loans acquired with deteriorated credit quality	124,554		3,768		29,143		411		157,876
Total	$	9,930,315	$	4,525,354	$	4,538,104	$	645,721	$	19,639,494



(in thousands)	June 30, 2017
	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for loans and leases:
Collectively evaluated for impairment	$	43,968	$	59,694	$	17,442	$	11,312	$	132,416
Individually evaluated for impairment	712		43		—		—		755
Loans acquired with deteriorated credit quality	2,734		320		609		33		3,696
Total	$	47,414	$	60,057	$	18,051	$	11,345	$	136,867
Loans and leases:
Collectively evaluated for impairment	$	9,309,214	$	3,896,803	$	4,028,864	$	720,329	$	17,955,210
Individually evaluated for impairment	41,053		21,806		—		—		62,859
Loans acquired with deteriorated credit quality	190,454		5,213		39,568		475		235,710
Total	$	9,540,721	$	3,923,822	$	4,068,432	$	720,804	$	18,253,779

Schedule of Reserve for Unfunded Commitments

The following tables present a summary of activity in the RUC and unfunded commitments for the three and six months ended June 30, 2018 and 2017:



(in thousands)	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Balance, beginning of period	$	4,129	$	3,495	$	3,963	$	3,611
Net charge to other expense	1		321		167		205
Balance, end of period	$	4,130	$	3,816	$	4,130	$	3,816



(in thousands)	Total
Unfunded loan and lease commitments:
June 30, 2018	$	5,077,579
June 30, 2017	$	4,479,108

Non-Covered Non-Accrual Loans And Loans Past Due

The following tables summarize our non-accrual loans and leases and loans and leases past due, by loan and lease class, as of June 30, 2018 and December 31, 2017:



(in thousands)	June 30, 2018
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90+ Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	444	$	10,203	$	—	$	10,647	$	2,263	$	3,506,072	$	3,518,982
Owner occupied term, net	541		1,679		1		2,221		13,482		2,458,031		2,473,734
Multifamily, net	3,124		1,165		—		4,289		331		3,181,303		3,185,923
Construction & development, net	—		—		—		—		—		568,562		568,562
Residential development, net	—		—		—		—		—		183,114		183,114
Commercial
Term, net	176		1,287		85		1,548		11,533		2,093,577		2,106,658
Lines of credit & other, net	154		1,699		119		1,972		2,149		1,148,732		1,152,853
Leases & equipment finance, net	7,440		8,094		2,912		18,446		13,634		1,233,763		1,265,843
Residential
Mortgage, net (2)	—		4,022		38,337		42,359		—		3,363,416		3,405,775
Home equity loans & lines, net	1,163		673		1,841		3,677		—		1,128,652		1,132,329
Consumer & other, net	2,312		558		445		3,315		—		642,406		645,721
Total, net of deferred fees and costs	$	15,354	$	29,380	$	43,740	$	88,474	$	43,392	$	19,507,628	$	19,639,494

(1) Other includes purchased credit impaired loans of $157.9 million.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $9.2 million at June 30, 2018.



(in thousands)	December 31, 2017
	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90+ Days and Accruing		Total Past Due		Non-Accrual		Current & Other (1)		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	207	$	2,097	$	—	$	2,304	$	4,503	$	3,476,390	$	3,483,197
Owner occupied term, net	4,997		2,010		71		7,078		13,835		2,455,741		2,476,654
Multifamily, net	—		—		—		—		355		3,060,261		3,060,616
Construction & development, net	—		—		—		—		—		540,696		540,696
Residential development, net	—		—		—		—		—		165,941		165,941
Commercial
Term, net	597		1,064		—		1,661		14,686		1,928,578		1,944,925
Lines of credit & other, net	1,263		—		401		1,664		6,402		1,158,209		1,166,275
Leases & equipment finance, net	8,494		10,133		2,857		21,484		11,574		1,134,445		1,167,503
Residential
Mortgage, net⁽²⁾	—		6,709		36,980		43,689		—		3,139,199		3,182,888
Home equity loans & lines, net	2,011		283		2,550		4,844		—		1,093,033		1,097,877
Consumer & other, net	3,117		871		532		4,520		—		728,100		732,620
Total, net of deferred fees and costs	$	20,686	$	23,167	$	43,391	$	87,244	$	51,355	$	18,880,593	$	19,019,192

(1) Other includes purchased credit impaired loans of $189.1 million.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $12.4 million at December 31, 2017.

Non-Covered Impaired Loans

The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and six months ended June 30, 2018 and 2017:



(in thousands)	Three Months Ended				Three Months Ended
	June 30, 2018				June 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate
Non-owner occupied term, net	$	13,301	$	103	$	17,743	$	149
Owner occupied term, net	11,185		10		10,746		66
Multifamily, net	3,857		30		3,901		31
Construction & development, net	—		—		1,091		11
Residential development, net	—		—		7,221		75
Commercial
Term, net	17,515		56		12,697		119
Lines of credit & other, net	2,609		—		5,515		38
Leases & equipment finance, net	509		—		370		—
Total, net of deferred fees and costs	$	48,976	$	199	$	59,284	$	489



(in thousands)	Six Months Ended				Six Months Ended
	June 30, 2018				June 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate
Non-owner occupied term, net	$	14,172	$	205	$	16,752	$	298
Owner occupied term, net	11,527		20		9,322		127
Multifamily, net	3,862		60		3,924		61
Construction & development, net	—		—		1,238		22
Residential development, net	—		—		7,370		150
Commercial
Term, net	18,875		145		14,079		154
Lines of credit & other, net	3,867		—		4,960		50
Leases & equipment finance, net	339		—		246		—
Total, net of deferred fees and costs	$	52,642	$	430	$	57,891	$	862

The following tables summarize our impaired loans by loan class as of June 30, 2018 and December 31, 2017:



(in thousands)	June 30, 2018
			Recorded Investment
	Unpaid Principal Balance		Without Allowance		With Allowance		Related Allowance
Commercial real estate
Non-owner occupied term, net	$	13,382	$	21	$	13,255	$	632
Owner occupied term, net	12,419		10,745		915		96
Multifamily, net	3,984		331		3,519		86
Commercial
Term, net	19,854		14,111		91		7
Lines of credit & other, net	6,549		2,149		—		—
Leases & equipment finance, net	874		874		—		—
Total, net of deferred fees and costs	$	57,062	$	28,231	$	17,780	$	821



(in thousands)	December 31, 2017
			Recorded Investment
	Unpaid Principal Balance		Without Allowance		With Allowance		Related Allowance
Commercial real estate
Non-owner occupied term, net	$	15,930	$	2,543	$	13,310	$	314
Owner occupied term, net	12,775		11,269		940		94
Multifamily, net	3,994		355		3,519		123
Commercial
Term, net	28,117		19,084		2,510		4
Lines of credit & other, net	8,018		6,383		—		—
Total, net of deferred fees and costs	$	68,834	$	39,634	$	20,279	$	535

Internal Risk Rating By Loan Class

The following tables summarize our internal risk rating by loan and lease class for the loan and lease portfolio, including purchased credit impaired loans, as of June 30, 2018 and December 31, 2017:



(in thousands)	June 30, 2018
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,439,595	$	40,421	$	25,474	$	109	$	107	$	13,276	$	3,518,982
Owner occupied term, net	2,395,159		41,958		24,827		—		130		11,660		2,473,734
Multifamily, net	3,159,905		10,950		11,218		—		—		3,850		3,185,923
Construction & development, net	566,600		—		1,962		—		—		—		568,562
Residential development, net	183,114		—		—		—		—		—		183,114
Commercial
Term, net	2,054,321		29,329		8,604		90		112		14,202		2,106,658
Lines of credit & other, net	1,088,463		38,721		23,329		191		—		2,149		1,152,853
Leases & equipment finance, net	1,233,507		7,440		8,094		14,262		1,666		874		1,265,843
Residential
Mortgage, net (2)	3,361,298		4,419		38,228		—		1,830		—		3,405,775
Home equity loans & lines, net	1,128,282		2,005		1,640		—		402		—		1,132,329
Consumer & other, net	642,378		2,870		410		—		63		—		645,721
Total, net of deferred fees and costs	$	19,252,622	$	178,113	$	143,786	$	14,652	$	4,310	$	46,011	$	19,639,494

(1) The percentage of impaired loans classified as pass/watch and substandard was 4.1% and 95.9%, respectively, as of June 30, 2018.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $9.2 million at June 30, 2018, which is included in the substandard category.



(in thousands)	December 31, 2017
	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Impaired (1)		Total
Commercial real estate
Non-owner occupied term, net	$	3,388,421	$	45,189	$	33,026	$	630	$	78	$	15,853	$	3,483,197
Owner occupied term, net	2,398,215		30,343		34,743		438		706		12,209		2,476,654
Multifamily, net	3,037,320		13,783		5,639		—		—		3,874		3,060,616
Construction & development, net	538,515		—		2,181		—		—		—		540,696
Residential development, net	165,502		—		439		—		—		—		165,941
Commercial
Term, net	1,900,062		12,735		10,372		82		80		21,594		1,944,925
Lines of credit & other, net	1,122,360		6,539		30,941		52		—		6,383		1,166,275
Leases & equipment finance, net	1,134,446		8,494		10,133		12,868		1,562		—		1,167,503
Residential
Mortgage, net (2)	3,136,071		7,505		35,918		—		3,394		—		3,182,888
Home equity loans & lines, net	1,092,496		2,564		2,286		—		531		—		1,097,877
Consumer & other, net	728,006		3,998		568		—		48		—		732,620
Total, net of deferred fees and costs	$	18,641,414	$	131,150	$	166,246	$	14,070	$	6,399	$	59,913	$	19,019,192

(1) The percentage of impaired loans classified as pass/watch and substandard was 1.7%, and 98.3%, respectively, as of December 31, 2017.

(2) Includes government guaranteed GNMA mortgage loans that Umpqua has the right but not the obligation to repurchase that are past due 90 days or more, totaling $12.4 million at December 31, 2017, which is included in the substandard category.

Schedule Of Troubled Debt Restructurings

The following tables present newly restructured loans that occurred during the six months ended June 30, 2018 and the three and six months ended June 30, 2017:



(in thousands)	Three Months Ended June 30, 2017
	Rate Modifications		Term Modifications		Interest Only Modifications		Payment Modifications		Combination Modifications		Total Modifications
Commercial, net	$	—	$	—	$	—	$	—	$	9,874	$	9,874
Residential, net	—		—		—		—		881		881
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	10,755	$	10,755



(in thousands)	Six Months Ended June 30, 2018
	Rate Modifications		Term Modifications		Interest Only Modifications		Payment Modifications		Combination Modifications		Total Modifications
Residential, net	—		—		—		—		106		106
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	106	$	106

(in thousands)	Six Months Ended June 30, 2017
	Rate Modifications		Term Modifications		Interest Only Modifications		Payment Modifications		Combination Modifications		Total Modifications
Commercial, net	$	—	$	—	$	—	$	—	$	12,793	$	12,793
Residential, net	—		—		—		—		1,134		1,134
Total, net of deferred fees and costs	$	—	$	—	$	—	$	—	$	13,927	$	13,927

The following tables present troubled debt restructurings by accrual versus non-accrual status and by loan class as of June 30, 2018 and December 31, 2017:



(in thousands)	June 30, 2018
	Accrual Status		Non-Accrual Status		Total Modifications
Commercial real estate, net	$	17,612	$	4,966	$	22,578
Commercial, net	3,495		10,299		13,794
Residential, net	6,060		—		6,060
Total, net of deferred fees and costs	$	27,167	$	15,265	$	42,432



(in thousands)	December 31, 2017
	Accrual Status		Non-Accrual Status		Total Modifications
Commercial real estate, net	$	17,694	$	5,088	$	22,782
Commercial, net	7,787		16,978		24,765
Residential, net	6,687		—		6,687
Total, net of deferred fees and costs	$	32,168	$	22,066	$	54,234