EX-99.1 2 umpq-20200930ex991earn.htm PRESS RELEASE ANNOUNCING THIRD QUARTER RESULTS Document

EXHIBIT 99.1 
umpqheadera011.jpg  

Contacts:
Ron FarnsworthDrew Anderson
EVP/Chief Financial OfficerSVP/Investor Relations Director
Umpqua Holdings CorporationUmpqua Holdings Corporation
503-727-4108503-727-4192
ronfarnsworth@umpquabank.comdrewanderson@umpquabank.com
 
UMPQUA REPORTS THIRD QUARTER 2020 RESULTS

Third quarter 2020 net income of $124.9 million, or $0.57 per common share
Mortgage production volume of $2.2 billion and gain on sale of 5.13%
Loans currently on deferral decreased to 2.3% of total portfolio
Launched Next Gen 2.0 with focus on growth, technology investments, and operational excellence initiatives


PORTLAND, Ore. – October 21, 2020 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net income of $124.9 million for the third quarter of 2020, compared to $52.9 million for the second quarter of 2020 and $84.5 million for the third quarter of 2019. Earnings per diluted common share were $0.57 for the third quarter of 2020, compared to $0.24 for the second quarter of 2020 and $0.38 for the third quarter of 2019.

"Umpqua’s third quarter results represent a record level of net income driven by another outstanding performance by our home lending division who generated production of $2.2 billion this past quarter and by a continued decline in our cost of interest bearing deposits. In addition, we remain confident in the credit quality of our loan portfolio as our current deferral levels decreased to 2.3%.” said Cort O’Haver, president and CEO of Umpqua Holdings Corporation. "We launched Next Gen 2.0 this quarter as a continuation of the great progress we have made these past three years modernizing the bank, advancing technology initiatives and improving operating leverage."

Ongoing impact of COVID-19 on our business operations:

Operations have been modified to comply with multiple state-level proclamations and Center for Disease Control and Prevention (CDC) guidance and best practices; we continue to:
restrict travel.
maintain a remote work program for associates other than store associates and small groups of other functions that cannot be completed remotely. About 90% of our non-store associates are operating remotely.
transitioned store operations to restrict lobby access and serve customers in-store by appointment only which has allowed over 94% of stores on any given day to remain open throughout the crisis.
increased cleaning scope and frequency at our store locations and installed other protective devices for our associates and customers.

Mobile banking usage trends are up 9% and unique sessions are up 7% year over year in addition to an expected decline in store transactions of over 27%.
Continue to offer our Umpqua Go-To® application with over 70,000 customers using the application. Go-To usage increased 38% from the prior quarter levels as customers used the platform as a safe and effective way of conducting banking.


Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 2
We enhanced associate benefits, including:
supplemental front line associate pay.
pandemic pay bank for associates needing additional paid time off due to COVID-19 impacts.
flexible work rotations and remote work for higher-risk associates.
Active participant in PPP, including:
over 16,900 PPP loans produced.
$2.05 billion in total loans were funded.
average loan size was $121,000.
Addressing other customer needs during pandemic:
payment deferrals.
waiving deferral associated fees.
ATM fee waivers.
Enhanced community support:
announced a total of $3.0 million in combined grants and investments to organizations providing COVID-19 community relief and small business microloans.
initiated virtual volunteerism program.
activated an associate 3:1 giving match to donations.

Notable items that impacted the third quarter 2020 financial results included:

Provision for credit losses decreased by $87.4 million as compared to the previous quarter and $23.6 million as compared to the same period of the prior year, due to changes in loan portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models.
$12.2 million loss on the fair value change of the mortgage servicing rights (MSR) asset due to changes in model inputs compared to a $6.4 million loss in the prior quarter and a $11.0 million gain in the same period of the prior year.
$1.8 million gain related to the fair value of the debt capital market swap derivatives, compared to a loss of $0.8 million in the prior quarter and a loss of $4.6 million in the same period of the prior year.

Third Quarter 2020 Highlights (compared to prior quarter):

Net interest income increased by $4.1 million on a quarter to quarter basis primarily driven by lower costs of interest-bearing deposits;
Provision for credit losses decreased by $87.4 million due to changes in loan portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models;
Net charge-offs decreased by five basis points to 0.24% of average loans and leases (annualized);
Non-interest income increased by $16.4 million, driven primarily by an increase in net mortgage banking revenue and the sale of three store locations completed during the quarter;
Non-interest expense increased by $8.3 million, primarily due to an increase in group insurance costs, lower deferred origination costs, higher mortgage commissions due to strong mortgage production, and higher other expenses, partially offset by lower FDIC assessment costs;
Non-performing assets to total assets increased two basis points to 0.27% from 0.25%;
Estimated total risk-based capital ratio of 14.9% and estimated Tier 1 common to risk weighted assets ratio of 11.6%;
Paid a quarterly cash dividend of $0.21 per common share on August 31, 2020 to shareholders of record as of August 20, 2020.

Balance Sheet
Total consolidated assets were $29.4 billion as of September 30, 2020, compared to $29.6 billion as of June 30, 2020 and $28.9 billion as of September 30, 2019. Including secured off-balance sheet lines of credit, total available liquidity was $11.2 billion as of September 30, 2020, representing 38% of total assets and 45% of total deposits.
 


Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 3
Gross loans and leases were $22.4 billion as of September 30, 2020, a decrease of $245.0 million relative to June 30, 2020. The decrease in gross loans and leases is primarily due to the payoffs in commercial real estate that occurred during the quarter as well as a decrease in utilization rates of commercial lines of credit. Please refer to the additional loan tables in the Q3 2020 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $24.7 billion as of September 30, 2020, a decrease of $174.6 million from $24.8 billion as of June 30, 2020. This decrease was attributable to a decline in time deposits of $612.5 million partially offset by growth in non-interest bearing demand deposits of $303.0 million.
 
Net Interest Income
Net interest income was $216.6 million for the third quarter of 2020, up $4.1 million from the prior quarter. The increase was primarily driven by lower costs of interest bearing deposits compared to the previous quarter.

The Company's net interest margin was 3.08% for the third quarter of 2020, down one basis point from 3.09% for the second quarter of 2020 primarily driven by lower yields on loans held for investment offset by lower costs of interest bearing deposits.

Credit Quality
The allowance for credit losses was $369.4 million, or 1.65% of loans and leases, as of September 30, 2020, which was down from $383.1 million, or 1.69% of loans and leases, as of June 30, 2020. The provision for credit losses decreased by $87.4 million from the prior quarter level primarily due to changes in portfolio mix and balances as well as the stabilization of credit quality metrics and economic forecasts used in credit models.

Net charge-offs as a percentage of average loans and leases decreased by five basis points to 0.24% of average loans and leases (annualized) as of September 30, 2020. The decrease in net charge-offs for the quarter was primarily due to continued, stable credit performance of the loan portfolio in addition to a select amount of borrowers using available deferral options. As of September 30, 2020, non-performing assets were 0.27% of total assets, compared to 0.25% as of June 30, 2020 and 0.25% as of September 30, 2019.

Current Expected Credit Loss (CECL)
As described in our first quarter 2020 quarterly report on Form 10-Q filed on May 7, 2020 ("Q1 2020 10-Q"), 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, our financial results are affected as soon as weak or deteriorating economic conditions are forecasted which alters our expectations for credit losses. In addition, due to the expansion of the time horizon over which we are required to estimate future credit losses under CECL, we may experience increased volatility in our future provisions for credit losses. Specifically, we use credit models that factor in economic forecasts, which at the beginning of the COVID-19 pandemic projected significant, negative COVID-19 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 have stabilized, we recorded a small recapture of the allowance for credit losses in the current period.

Non-interest Income
Non-interest income was $131.9 million for the third quarter of 2020, up $16.4 million from the prior quarter driven primarily by the increase in net mortgage banking revenue and the sale of three store locations completed during the period.

Revenue from the origination and sale of residential mortgages was $98.7 million for the third quarter of 2020, an increase of $11.9 million from the prior quarter. This increase reflects a sequential quarter increase of $96.7 million or 5% in for-sale mortgage origination volume and an increase of 38 basis points in the home lending gain on sale margin to 5.13% for the third quarter of 2020. Of the current quarter's mortgage production, 46% related to purchase activity, compared to 34% for the prior quarter and 60% for the same period of the prior year.


Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 4

Non-interest Expense
Non-interest expense was $190.2 million for the third quarter of 2020, up $8.3 million from the prior quarter level. This increase was primarily due to higher group insurance costs, lower deferred origination costs, higher mortgage commissions due to strong mortgage production, and higher other expenses, partially offset by lower FDIC assessment costs.

Goodwill
As described in our Q1 2020 10-Q, the Company completed the analysis of goodwill prior to filing the Q1 2020 10-Q with the Securities and Exchange Commission. The Company updated its goodwill assessment for the Wholesale Bank and Retail Bank reporting units as of March 31, 2020, due to events and circumstances indicating potential impairment. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Upon completing the quantitative impairment analysis, the Company recorded a goodwill impairment of $1.8 billion during the first quarter, which represented the entire amount of goodwill allocated to the Wholesale Bank and Retail Bank reporting units. The remaining goodwill of $2.7 million after the impairment relates to the Wealth Management reporting unit. The goodwill impairment was material to reported earnings in the first quarter, but was a non-cash charge and had no effect on the Company’s cash balances, liquidity or tangible equity. In addition, because goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company’s well-capitalized regulatory capital ratios were not impacted by the impairment.

Capital
As of September 30, 2020, the Company's tangible book value per common share1 was $11.77, compared to $11.44 in the prior quarter and $11.27 in the same period of the prior year.

The Company's estimated total risk-based capital ratio was 14.9% and its estimated Tier 1 common to risk weighted
assets ratio was 11.6% as of September 30, 2020. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of September 30, 2020 are estimates, pending completion and filing of the Company's regulatory reports.

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.
 

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.

Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 5
The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
 
(In thousands, except per share data)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019
Total shareholders' equity$2,610,244 $2,538,339 $2,507,611 $4,313,915 $4,289,516 
Subtract:   
Goodwill 2,715 2,715 2,715 1,787,651 1,787,651 
Other intangible assets, net14,606 15,853 17,099 18,346 19,750 
Tangible common shareholders' equity$2,592,923 $2,519,771 $2,487,797 $2,507,918 $2,482,115 
Total assets$29,437,441 $29,645,248 $27,540,382 $28,846,809 $28,930,855 
Subtract:   
Goodwill2,715 2,715 2,715 1,787,651 1,787,651 
Other intangible assets, net14,606 15,853 17,099 18,346 19,750 
Tangible assets$29,420,120 $29,626,680 $27,520,568 $27,040,812 $27,123,454 
Common shares outstanding at period end220,222 220,219 220,175 220,229 220,212 
Total shareholders' equity to total assets ratio8.87 %8.56 %9.11 %14.95 %14.83 %
Tangible common equity ratio8.81 %8.51 %9.04 %9.27 %9.15 %
Book value per common share$11.85 $11.53 $11.39 $19.59 $19.48 
Tangible book value per common share$11.77 $11.44 $11.30 $11.39 $11.27 



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 6
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 third quarter 2020 earnings conference call on October 22, 2020, 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 third quarter 2020 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: 4653597. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 4653597. The earnings conference call will also be available as an audio cast, 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. 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 Next Gen 2.0 initiatives, the projected impact on our business operations of the COVID-19 global pandemic and future credit losses under CECL. 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; and changes in laws or regulations. 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 Third Quarter 2020 Results
October 21, 2020
Page 7

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
 Quarter Ended% Change
(In thousands, except per share data)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq.
Quarter
Year over Year
Interest income:     
Loans and leases$229,457 $235,174 $245,993 $262,109 $266,111 (2)%(14)%
Interest and dividends on investments: 
Taxable10,168 9,015 16,605 13,361 12,546 13 %(19)%
Exempt from federal income tax1,490 1,520 1,562 1,638 1,727 (2)%(14)%
Dividends710 568 678 579 599 25 %19 %
Temporary investments and interest bearing deposits474 403 3,331 4,343 4,204 18 %(89)%
Total interest income242,299 246,680 268,169 282,030 285,187 (2)%(15)%
Interest expense:     
Deposits19,121 26,222 40,290 44,380 45,876 (27)%(58)%
Securities sold under agreement to repurchase and federal funds purchased84 194 395 431 448 (57)%(81)%
Borrowings3,271 3,839 4,046 5,080 4,238 (15)%(23)%
Junior subordinated debentures3,249 3,922 4,903 5,325 5,652 (17)%(43)%
Total interest expense25,725 34,177 49,634 55,216 56,214 (25)%(54)%
Net interest income216,574 212,503 218,535 226,814 228,973 %(5)%
(Recapture) provision for credit losses(338)87,085 118,085 16,252 23,227 (100)%(101)%
Non-interest income:     
Service charges on deposits14,438 11,831 15,638 16,656 16,627 22 %(13)%
Brokerage revenue3,686 3,805 4,015 4,027 4,060 (3)%(9)%
Residential mortgage banking revenue, net90,377 83,877 17,540 34,050 47,000 %92 %
Gain (loss) on sale of debt securities, net— 323 (133)— (100)%nm
(Loss) gain on equity securities, net(112)240 814 (84)257 (147)%(144)%
Gain on loan and lease sales, net1,092 1,074 1,167 4,603 1,762 %(38)%
BOLI income2,087 2,116 2,129 2,078 2,067 (1)%%
Other income (expense)20,356 12,214 (525)22,417 16,739 67 %22 %
Total non-interest income131,924 115,480 40,645 83,749 88,512 14 %49 %
Non-interest expense:     
Salaries and employee benefits120,337 116,676 109,774 108,847 106,819 %13 %
Occupancy and equipment, net36,720 36,171 37,001 36,513 35,446 %%
Intangible amortization1,247 1,246 1,247 1,404 1,405 %(11)%
FDIC assessments2,989 3,971 2,542 2,867 2,587 (25)%16 %
Goodwill impairment— — 1,784,936 — — nmnm
Other expenses28,914 23,846 27,158 33,812 37,333 21 %(23)%
Total non-interest expense190,207 181,910 1,962,658 183,443 183,590 %%
Income (loss) before provision for income taxes158,629 58,988 (1,821,563)110,868 110,668 169 %43 %
Provision for income taxes33,758 6,062 30,384 27,118 26,166 457 %29 %
Net income (loss) $124,871 $52,926 $(1,851,947)$83,750 $84,502 136 %48 %
Weighted average basic shares outstanding220,221 220,210 220,216 220,222 220,285  %%
Weighted average diluted shares outstanding220,418 220,320 220,216 220,671 220,583  % %
Earnings (loss) per common share – basic$0.57 $0.24 $(8.41)$0.38 $0.38 138 %50 %
Earnings (loss) per common share – diluted$0.57 $0.24 $(8.41)$0.38 $0.38 138 %50 %
nm = not meaningful     




Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 8

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
 Nine Months Ended% Change
(In thousands, except per share data)Sep 30, 2020Sep 30, 2019Year
over Year
Interest income:   
Loans and leases$710,624 $788,968 (10)%
Interest and dividends on investments:
Taxable35,788 42,789 (16)%
Exempt from federal income tax4,572 5,762 (21)%
Dividends1,956 1,690 16 %
Temporary investments and interest bearing deposits4,208 9,837 (57)%
Total interest income757,148 849,046 (11)%
Interest expense: 
Deposits85,633 123,561 (31)%
Securities sold under agreement to repurchase and federal funds purchased673 1,661 (59)%
Borrowings11,156 12,484 (11)%
Junior subordinated debentures12,074 17,520 (31)%
Total interest expense109,536 155,226 (29)%
Net interest income647,612 693,820 (7)%
Provision for credit losses204,832 56,263 264 %
Non-interest income: 
Service charges on deposits41,907 47,858 (12)%
Brokerage revenue11,506 11,850 (3)%
Residential mortgage banking revenue, net191,794 67,760 183 %
Gain (loss) on sale of debt securities, net190 (7,186)(103)%
Gain on equity securities, net942 83,559 (99)%
Gain on loan and lease sales, net3,333 5,864 (43)%
BOLI income6,332 6,328 %
Other income32,045 40,042 (20)%
Total non-interest income288,049 256,075 12 %
Non-interest expense: 
Salaries and employee benefits346,787 311,526 11 %
Occupancy and equipment, net109,892 107,723 %
Intangible amortization3,740 4,214 (11)%
FDIC assessments9,502 8,366 14 %
Goodwill impairment1,784,936 — nm
Other expenses79,918 103,768 (23)%
Total non-interest expense2,334,775 535,597 336 %
(Loss) income before provision for income taxes(1,603,946)358,035 (548)%
Provision for income taxes70,204 87,690 (20)%
Net (loss) income$(1,674,150)$270,345 (719)%
Weighted average basic shares outstanding220,216 220,379 %
Weighted average diluted shares outstanding220,216 220,642  %
(Loss) earnings per common share – basic$(7.60)$1.23 (718)%
(Loss) earnings per common share – diluted$(7.60)$1.23 (718)%
nm = not meaningful   



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 9

Umpqua Holdings Corporation
Consolidated Balance Sheets
(Unaudited)
    % Change
(In thousands, except per share data)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq.
Quarter
Year
over
Year
Assets:     
Cash and due from banks$370,595 $410,769 $406,426 $382,598 $433,620 (10)%(15)%
Interest bearing cash and temporary investments1,849,132 1,853,505 1,251,290 980,158 757,824 %144 %
Investment securities:     
Equity and other, at fair value82,769 81,958 80,797 80,165 64,764 %28 %
Available for sale, at fair value2,898,700 2,865,690 2,890,475 2,814,682 2,842,076 %%
Held to maturity, at amortized cost3,088 3,143 3,200 3,260 3,320 (2)%(7)%
Loans held for sale, at fair value683,960 605,399 481,541 513,431 355,022 13  %93 %
Loans and leases22,426,473 22,671,455 21,251,478 21,195,684 21,520,794 (1)%%
Allowance for credit losses on loans and leases(345,049)(356,745)(291,420)(157,629)(156,288)(3)%121 %
Net loans and leases22,081,424 22,314,710 20,960,058 21,038,055 21,364,506 (1)%%
Restricted equity securities50,062 54,062 58,062 46,463 54,463 (7)%(8)%
Premises and equipment, net185,104 192,041 195,390 201,460 203,391 (4)%(9)%
Operating lease right-of-use assets107,321 111,487 115,485 110,718 108,187 (4)%(1)%
Goodwill2,715 2,715 2,715 1,787,651 1,787,651 %(100)%
Other intangible assets, net14,606 15,853 17,099 18,346 19,750 (8)%(26)%
Residential mortgage servicing rights, at fair value93,248 96,356 94,346 115,010 151,383 (3)%(38)%
Bank owned life insurance326,120 324,873 322,717 320,611 318,533 %%
Other assets688,597 712,687 660,781 434,201 466,365 (3)%48 %
Total assets$29,437,441 $29,645,248 $27,540,382 $28,846,809 $28,930,855 (1)%%
Liabilities:     
Deposits$24,669,783 $24,844,378 $22,699,375 $22,481,504 $22,434,734 (1)%10 %
Securities sold under agreements to repurchase388,028 398,414 346,245 311,308 296,717 (3)%31 %
Borrowings996,520 1,096,559 1,196,597 906,635 1,106,674 (9)%(10)%
Junior subordinated debentures, at fair value247,045 232,936 195,521 274,812 267,798 %(8)%
Junior subordinated debentures, at amortized cost88,325 88,382 88,439 88,496 88,553  %%
Operating lease liabilities115,790 119,885 123,962 119,429 116,924 (3)%(1)%
Deferred tax liability, net13,239 21,439 51,061 52,928 67,055 (38)%(80)%
Other liabilities308,467 304,916 331,571 297,782 262,884  %17 %
Total liabilities26,827,197 27,106,909 25,032,771 24,532,894 24,641,339 (1)%%
Shareholders' equity:     
Common stock3,512,153 3,510,145 3,507,680 3,514,000 3,511,493  %%
(Accumulated deficit) retained earnings(1,036,931)(1,115,414)(1,168,340)770,366 733,059 (7)%(241)%
Accumulated other comprehensive income135,022 143,608 168,271 29,549 44,964 (6)%200 %
Total shareholders' equity2,610,244 2,538,339 2,507,611 4,313,915 4,289,516 %(39)%
Total liabilities and shareholders' equity$29,437,441 $29,645,248 $27,540,382 $28,846,809 $28,930,855 (1)%%
Common shares outstanding at period end220,222 220,219 220,175 220,229 220,212  % %
Book value per common share$11.85 $11.53 $11.39 $19.59 $19.48 %(39)%
Tangible book value per common share$11.77 $11.44 $11.30 $11.39 $11.27 %%
Tangible equity - common$2,592,923 $2,519,771 $2,487,797 $2,507,918 $2,482,115 %%
Tangible common equity to tangible assets8.81 %8.51 %9.04 %9.27 %9.15 %0.30(0.34)



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 10

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019% Change
 (Dollars in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Loans and leases:     
Commercial real estate:   
Non-owner occupied term, net$3,533,776 $3,589,484 $3,613,420 $3,545,566 $3,495,555 (2)%%
Owner occupied term, net2,411,098 2,459,954 2,472,187 2,496,088 2,566,299 (2)%(6)%
Multifamily, net3,389,034 3,466,829 3,464,217 3,514,774 3,479,986 (2)%(3)%
Construction & development, net757,462 662,703 667,975 678,740 771,214 14 %(2)%
Residential development, net163,400 164,180 187,594 189,010 191,500 %(15)%
Commercial:
Term, net (1)
4,246,229 4,265,092 2,317,573 2,232,817 2,310,759 %84 %
Lines of credit & other, net894,782 940,443 1,208,051 1,212,393 1,254,755 (5)%(29)%
Leases & equipment finance, net1,496,650 1,522,369 1,492,762 1,465,489 1,485,753 (2)%%
Residential:
Mortgage, net4,042,416 4,056,588 4,193,908 4,215,424 4,245,674 %(5)%
Home equity loans & lines, net1,172,697 1,189,428 1,249,152 1,237,512 1,224,578 (1)%(4)%
   Consumer & other, net318,929 354,385 384,639 407,871 494,721 (10)%(36)%
Total loans, net of deferred fees and costs$22,426,473 $22,671,455 $21,251,478 $21,195,684 $21,520,794 (1)%%
(1)The Bank participates in the Payroll Protection Program ("PPP") 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 16,900 PPP loans, totaling $2.0 billion, net of deferred fees and costs as of September 30, 2020.

Loan and leases mix:
Commercial real estate:
   Non-owner occupied term, net16 %16 %17 %17 %16 %
   Owner occupied term, net11 %11 %12 %12 %12 %
   Multifamily, net15 %15 %16 %16 %16 %
Construction & development, net%%%%%
Residential development, net%%%%%
Commercial: 
Term, net19 %19 %11 %10 %11 %
Lines of credit & other, net%%%%%
Leases & equipment finance, net%%%%%
Residential: 
Mortgage, net18 %18 %20 %20 %20 %
Home equity loans & lines, net%%%%%
   Consumer & other, net%%%%%
Total100 %100 %100 %100 %100 %




Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 11

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019% Change
 (Dollars in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Deposits:     
Demand, non-interest bearing$9,475,244 $9,172,210 $7,169,907 $6,913,375 $7,123,180 %33 %
Demand, interest bearing2,931,990 2,813,722 2,482,908 2,524,534 2,406,404 %22 %
Money market7,160,838 7,262,777 7,082,011 6,930,815 6,646,383 (1)%%
Savings1,848,639 1,730,051 1,486,909 1,471,475 1,469,302 %26 %
Time3,253,072 3,865,618 4,477,640 4,641,305 4,789,465 (16)%(32)%
Total$24,669,783 $24,844,378 $22,699,375 $22,481,504 $22,434,734 (1)%10 %
Total core deposits (1)
$22,439,241 $22,095,314 $19,434,228 $19,061,058 $18,845,328 %19 %
Deposit mix:
Demand, non-interest bearing38 %37 %32 %31 %32 %
Demand, interest bearing12 %11 %11 %11 %11 %
Money market29 %29 %31 %31 %30 %
Savings%%%%%
Time13 %16 %19 %21 %21 %
Total100 %100 %100 %100 %100 %
Number of open accounts:      
Demand, non-interest bearing423,658 423,456 416,270 415,254 413,633 
Demand, interest bearing73,812 74,813 75,514 75,900 76,390 
Money market59,083 59,445 59,203 58,888 58,796 
Savings162,234 161,710 159,870 159,948 160,673 
Time52,572 57,501 62,515 62,952 62,122 
Total771,359 776,925 773,372 772,942 771,614 
Average balance per account:      
Demand, non-interest bearing$22.4 $21.7 $17.2 $16.6 $17.2   
Demand, interest bearing39.7 37.6 32.9 33.3 31.5   
Money market121.2 122.2 119.6 117.7 113.0   
Savings11.4 10.7 9.3 9.2 9.1   
Time61.9 67.2 71.6 73.7 77.1   
Total$32.0 $32.0 $29.4 $29.1 $29.1   
 
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.




Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 12

 
Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
 (Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq. QuarterYear over Year
Non-performing assets:     
Loans and leases on non-accrual status$26,425 $32,412 $39,128 $26,244 $31,636 (18)%(16)%
Loans and leases past due 90+ days and accruing (1)
50,269 39,818 47,185 37,969 35,745 26 %41 %
Total non-performing loans and leases76,694 72,230 86,313 64,213 67,381 %14 %
Other real estate owned2,369 2,578 3,020 3,295 4,026 (8)%(41)%
Total non-performing assets$79,063 $74,808 $89,333 $67,508 $71,407 %11 %
Performing restructured loans and leases$15,819 $15,032 $20,541 $18,576 $14,309 %11 %
Loans and leases past due 31-89 days$66,155 $40,583 $59,962 $41,882 $44,390 63 %49 %
Loans and leases past due 31-89 days to total loans and leases0.29 %0.18 %0.28 %0.20 %0.21 %  
Non-performing loans and leases to total loans and leases (1)
0.34 %0.32 %0.41 %0.30 %0.31 %  
Non-performing assets to total assets(1)
0.27 %0.25 %0.32 %0.23 %0.25 %  

(1)Excludes certain mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $20.0 million, $2.6 million, $5.3 million, $4.3 million, and $5.2 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.




Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 13
Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended% Change
(Dollars in thousands)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq. QuarterYear over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$356,745 $291,420 $157,629 $156,288 $151,069 22 %136 %
Impact of adoption of CECL— — 49,999 — — nmnm
Adjusted balance, beginning of period356,745 291,420 207,628 156,288 151,069 22 %136 %
Provision for credit losses on loans and leases (1)
1,785 81,484 105,502 16,252 23,227 (98)%(92)%
Charge-offs(16,646)(19,453)(24,455)(18,734)(23,112)(14)%(28)%
Recoveries3,165 3,294 2,745 3,823 5,104 (4)%(38)%
Net charge-offs(13,481)(16,159)(21,710)(14,911)(18,008)(17)%(25)%
Balance, end of period$345,049 $356,745 $291,420 $157,629 $156,288 (3)%121 %
Reserve for unfunded commitments
Balance, beginning of period$26,368 $20,927 $5,106 $5,085 $4,857 26 %443 %
Impact of adoption of CECL— — 3,238 — — nmnm
Adjusted balance, beginning of period26,368 20,927 8,344 5,085 4,857 26 %443 %
(Recapture) provision for credit losses on unfunded commitments (1)
(2,062)5,441 12,583 21 228 (138)%nm
Balance, end of period24,306 26,368 20,927 5,106 5,085 (8)%378 %
Total Allowance for credit losses (ACL)$369,355 $383,113 $312,347 $162,735 $161,373 (4)%129 %
Net charge-offs to average loans and leases (annualized)0.24 %0.29 %0.41 %0.28 %0.34 %
Recoveries to gross charge-offs19.01 %16.93 %11.22 %20.41 %22.08 %
ACLLL to loans and leases1.54 %1.57 %1.37 %0.74 %0.73 %
ACL to loans and leases1.65 %1.69 %1.47 %0.77 %0.75 %
nm = not meaningful
(1) The total provision for credit losses as disclosed in the income statement includes a recapture of $61,000 related to the provision for accrued interest on loans deferred due to COVID-19, for the three months ended September 30, 2020 and an additional provision of $160,000 for the three months ended June 30, 2020, which are not included in the table above.




Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 14

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
Nine Months Ended% Change
(Dollars in thousands)Sep 30, 2020Sep 30, 2019Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$157,629 $144,871 %
Impact of adoption of CECL49,999 — nm
Adjusted balance, beginning of period207,628 144,871 43 %
Provision for credit losses on loans and leases (1)
188,771 56,263 236 %
Charge-offs(60,554)(56,971)%
Recoveries9,204 12,125 (24)%
Net charge-offs(51,350)(44,846)15 %
Balance, end of period$345,049 $156,288 121 %
Reserve for unfunded commitments
Balance, beginning of period$5,106 $4,523 13 %
Impact of adoption of CECL3,238 — nm
Adjusted balance, beginning of period8,344 4,523 84 %
Provision for credit losses on unfunded commitments (1)
15,962 562 nm
Balance, end of period24,306 5,085 378 %
Total Allowance for credit losses (ACL)$369,355 $161,373 129 %
Net charge-offs to average loans and leases (annualized)0.31 %0.29 %
Recoveries to gross charge-offs15.20 %21.28 %
nm = not meaningful
(1) The total provision for credit losses for the nine months ended September 30, 2020, as disclosed on the income statement includes an additional $99,000 of provision related to accrued interest on loans deferred due to COVID-19, not included in the table above.



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 15

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
 Quarter Ended% Change
 Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq. QuarterYear
over
Year
Average Rates:     
Yield on loans held for sale3.13 %3.77 %4.20 %4.25 %4.82 %(0.64)(1.69)
Yield on loans and leases3.96 %4.11 %4.58 %4.80 %4.93 %(0.15)(0.97)
Yield on taxable investments1.56 %1.38 %2.50 %2.05 %1.99 %0.18 (0.43)
Yield on tax-exempt investments (1)
3.11 %3.17 %3.14 %3.23 %3.30 %(0.06)(0.19)
Yield on interest bearing cash and temporary investments0.10 %0.10 %1.23 %1.65 %2.20 %— (2.10)
Total yield on earning assets (1)
3.45 %3.59 %4.19 %4.36 %4.52 %(0.14)(1.07)
Cost of interest bearing deposits0.49 %0.67 %1.03 %1.13 %1.19 %(0.18)(0.70)
Cost of securities sold under agreements   
to repurchase and fed funds purchased0.09 %0.21 %0.47 %0.56 %0.57 %(0.12)(0.48)
Cost of borrowings1.23 %1.33 %1.79 %1.96 %1.95 %(0.10)(0.72)
Cost of junior subordinated debentures4.03 %5.55 %5.45 %5.92 %6.14 %(1.52)(2.11)
Total cost of interest bearing liabilities0.59 %0.78 %1.15 %1.27 %1.33 %(0.19)(0.74)
Net interest spread (1)
2.85 %2.81 %3.04 %3.09 %3.19 %0.04 (0.34)
Net interest margin (1)
3.08 %3.09 %3.41 %3.51 %3.63 %(0.01)(0.55)
Performance Ratios:   
Return on average assets1.68 %0.73 %(25.82)%1.15 %1.18 %0.95 0.50 
Return on average tangible assets1.68 %0.73 %(27.53)%1.22 %1.26 %0.95 0.42 
Return on average common equity19.48 %8.46 %(174.94)%7.70 %7.87 %11.02 11.61 
Return on average tangible common equity19.62 %8.53 %(301.30)%13.24 %13.67 %11.09 5.95 
Efficiency ratio – Consolidated54.52 %55.40 %756.29 %59.00 %57.76 %(0.88)(3.24)
Efficiency ratio – Bank53.41 %54.17 %752.92 %57.56 %56.22 %(0.76)(2.81)

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



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 16

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
 Nine Months Ended% Change
 Sep 30, 2020Sep 30, 2019Year over Year
Average Rates:   
Yield on loans held for sale3.61 %5.15 %(1.54)
Yield on loans and leases4.21 %5.02 %(0.81)
Yield on taxable investments1.81 %2.20 %(0.39)
Yield on tax-exempt investments (1)
3.14 %3.45 %(0.31)
Yield on interest bearing cash and temporary investments0.38 %2.32 %(1.94)
Total yield on earning assets (1)
3.73 %4.63 %(0.90)
Cost of interest bearing deposits0.73 %1.11 %(0.38)
Cost of securities sold under agreements  
to repurchase and fed funds purchased0.25 %0.68 %(0.43)
Cost of borrowings1.43 %1.96 %(0.53)
Cost of junior subordinated debentures5.00 %6.18 %(1.18)
Total cost of interest bearing liabilities0.84 %1.26 %(0.42)
Net interest spread (1)
2.89 %3.37 %(0.48)
Net interest margin (1)
3.19 %3.78 %(0.59)
Performance Ratios:  
Return on average assets(7.67)%1.31 %(8.98)
Return on average tangible assets(7.83)%1.40 %(9.23)
Return on average common equity(72.01)%8.67 %(80.68)
Return on average tangible common equity(89.45)%15.32 %(104.77)
Efficiency ratio – Consolidated249.26 %56.31 %192.95 
Efficiency ratio – Bank247.93 %54.70 %193.23 

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


Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 17

Umpqua Holdings Corporation
Average Balances
(Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq. QuarterYear over Year
Temporary investments and interest bearing cash$1,827,818 $1,563,753 $1,084,854 $1,045,975 $759,416 17 %141 %
Investment securities, taxable2,797,547 2,777,154 2,760,461 2,719,089 2,648,092 %%
Investment securities, tax-exempt237,165 235,934 241,105 244,895 252,765 %(6)%
Loans held for sale669,646 577,773 406,434 415,169 328,155 16 %104 %
Loans and leases22,560,076 22,428,142 21,196,989 21,379,239 21,170,915 %%
Total interest earning assets28,092,252 27,582,756 25,689,843 25,804,367 25,159,343 %12 %
Goodwill and other intangible assets, net18,021 19,253 1,785,608 1,806,791 1,808,191 (6) %(99) %
Total assets29,533,871 29,066,775 28,844,773 28,981,387 28,356,982 %%
Non-interest bearing demand deposits9,335,350 8,484,684 6,880,457 7,037,320 6,880,093 10 %36 %
Interest bearing deposits15,451,816 15,803,595 15,695,309 15,550,483 15,289,464 (2)%%
Total deposits24,787,166 24,288,279 22,575,766 22,587,803 22,169,557 %12 %
Interest bearing liabilities17,205,775 17,625,888 17,301,712 17,237,770 16,827,917 (2)%%
Shareholders' equity - common2,549,703 2,514,754 4,257,711 4,317,277 4,260,810 %(40)%
Tangible common equity (1)
2,531,682 2,495,501 2,472,103 2,510,486 2,452,619 %%

Umpqua Holdings Corporation
Average Balances
(Unaudited)
 Nine Months Ended% Change
(Dollars in thousands)Sep 30, 2020Sep 30, 2019Year over Year
Temporary investments and interest bearing cash$1,493,352 $567,709 163 %
Investment securities, taxable2,778,460 2,696,001 %
Investment securities, tax-exempt238,059 270,461 (12)%
Loans held for sale551,583 260,600 112 %
Loans and leases22,063,582 20,724,820 %
Total interest earning assets27,125,036 24,519,591 11 %
Goodwill and other intangible assets, net605,548 1,809,583 (67) %
Total assets29,149,758 27,631,632 %
Non-interest bearing demand deposits8,237,095 6,648,638 24  %
Interest bearing deposits15,649,765 14,891,271 %
Total deposits23,886,860 21,539,909 11 %
Interest bearing liabilities17,377,259 16,448,027 %
Shareholders’ equity - common3,105,611 4,169,008 (26)%
Tangible common equity (1)
2,500,063 2,359,425 %
(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 Third Quarter 2020 Results
October 21, 2020
Page 18

Umpqua Holdings Corporation
Average Rates and Balances
(Unaudited)
Quarter Ended
September 30, 2020June 30, 2020September 30, 2019
 (Dollars in thousands)Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$669,646 $5,248 3.13 %$577,773 $5,443 3.77 %$328,155 $3,953 4.82 %
Loans and leases (1)22,560,076 224,209 3.96 %22,428,142 229,731 4.11 %21,170,915 262,158 4.93 %
Taxable securities2,797,547 10,878 1.56 %2,777,154 9,583 1.38 %2,648,092 13,145 1.99 %
Non-taxable securities (2)237,165 1,845 3.11 %235,934 1,868 3.17 %252,765 2,086 3.30 %
Temporary investments and interest-bearing cash1,827,818 474 0.10 %1,563,753 403 0.10 %759,416 4,204 2.20 %
Total interest-earning assets28,092,252 $242,654 3.45 %27,582,756 $247,028 3.59 %25,159,343 $285,546 4.52 %
Other assets1,441,619 1,484,019 3,197,639 
Total assets$29,533,871 $29,066,775 $28,356,982 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$2,878,529 $573 0.08 %$2,649,331 $1,148 0.17 %$2,363,626 $3,117 0.52 %
Money market deposits7,179,705 2,284 0.13 %7,275,041 4,037 0.22 %6,962,370 16,575 0.94 %
Savings deposits1,790,055 179 0.04 %1,628,276 198 0.05 %1,462,198 557 0.15 %
Time deposits3,603,527 16,085 1.78 %4,250,947 20,839 1.97 %4,501,270 25,627 2.26 %
Total interest-bearing deposits15,451,816 19,121 0.49 %15,803,595 26,222 0.67 %15,289,464 45,876 1.19 %
Repurchase agreements and federal funds purchased378,844 84 0.09 %375,098 194 0.21 %313,089 448 0.57 %
Borrowings1,054,153 3,271 1.23 %1,163,065 3,839 1.33 %860,285 4,238 1.95 %
Junior subordinated debentures320,962 3,249 4.03 %284,130 3,922 5.55 %365,079 5,652 6.14 %
Total interest-bearing liabilities17,205,775 $25,725 0.59 %17,625,888 $34,177 0.78 %16,827,917 $56,214 1.33 %
Non-interest-bearing deposits9,335,350 8,484,684 6,880,093 
Other liabilities443,043 441,449 388,162 
Total liabilities26,984,168 26,552,021 24,096,172 
Common equity2,549,703 2,514,754 4,260,810 
Total liabilities and shareholders' equity$29,533,871 $29,066,775 $28,356,982 
NET INTEREST INCOME$216,929 $212,851 $229,332 
NET INTEREST SPREAD2.85 %2.81 %3.19 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)3.08 %3.09 %3.63 %
(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 $355,000 for the three months ended September 30, 2020, as compared to $348,000 for June 30, 2020 and $359,000 for September 30, 2019. 



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 19

Umpqua Holdings Corporation
Average Rates and Balances
(Unaudited)
(dollars in thousands)Nine Months Ended
 September 30, 2020September 30, 2019
 Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$551,583 $14,955 3.61 %$260,600 $10,069 5.15 %
Loans and leases (1)22,063,582 695,669 4.21 %20,724,820 778,899 5.02 %
Taxable securities2,778,460 37,744 1.81 %2,696,001 44,479 2.20 %
Non-taxable securities (2)238,059 5,608 3.14 %270,461 6,991 3.45 %
Temporary investments and interest-bearing cash1,493,352 4,208 0.38 %567,709 9,837 2.32 %
Total interest-earning assets27,125,036 $758,184 3.73 %24,519,591 $850,275 4.63 %
Other assets2,024,722 3,112,041 
Total assets$29,149,758 $27,631,632 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$2,667,160 $5,264 0.26 %$2,338,787 $8,555 0.49 %
Money market deposits7,187,615 18,080 0.34 %6,702,551 42,943 0.86 %
Savings deposits1,635,064 618 0.05 %1,468,449 1,237 0.11 %
Time deposits4,159,926 61,671 1.98 %4,381,484 70,826 2.16 %
Total interest-bearing deposits15,649,765 85,633 0.73 %14,891,271 123,561 1.11 %
Repurchase agreements and federal funds purchased363,957 673 0.25 %325,281 1,661 0.68 %
Borrowings1,041,181 11,156 1.43 %852,659 12,484 1.96 %
Junior subordinated debentures322,356 12,074 5.00 %378,816 17,520 6.18 %
Total interest-bearing liabilities17,377,259 $109,536 0.84 %16,448,027 $155,226 1.26 %
Non-interest-bearing deposits8,237,095 6,648,638 
Other liabilities429,793 365,959 
Total liabilities26,044,147 23,462,624 
Common equity3,105,611 4,169,008 
Total liabilities and shareholders' equity$29,149,758 $27,631,632 
NET INTEREST INCOME$648,648 $695,049 
NET INTEREST SPREAD2.89 %3.37 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)  3.19 %  3.78 %
(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 $1.0 million for the nine months ended September 30, 2020, as compared to $1.2 million for the same period in 2019. 



Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 20


Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Seq. QuarterYear
over Year
Residential mortgage banking revenue:   
Origination and sale$98,703 $86,781 $39,347 $35,438 $31,432 14 %214 %
Servicing8,796 8,533 8,880 8,981 11,358 %(23)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,878)(5,042)(5,329)(5,237)(6,835)(3)%(29)%
Changes due to valuation inputs or assumptions(12,244)(6,395)(25,358)(5,132)11,045 91 %(211)%
Total$90,377 $83,877 $17,540 $34,050 $47,000 %92 %
Closed loan volume:
Portfolio$245,550 $276,247 $252,329 $335,511 $611,022 (11)%(60)%
For-sale1,922,789 1,826,095 1,148,184 1,060,016 844,442 %128 %
Total$2,168,339 $2,102,342 $1,400,513 $1,395,527 $1,455,464 %49 %
Gain on sale margin:
Based on for-sale volume5.13 %4.75 %3.43 %3.34 %3.72 %0.38 1.41 
Residential mortgage servicing rights:     
Balance, beginning of period$96,356 $94,346 $115,010 $151,383 $139,780 %(31)%
Additions for new MSR capitalized14,014 13,447 10,023 8,397 7,393 %90 %
Sale of MSR assets— — — (34,401)— %%
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,878)(5,042)(5,329)(5,237)(6,835)(3)%(29)%
Changes due to valuation inputs or assumptions(12,244)(6,395)(25,358)(5,132)11,045 91 %(211)%
Balance, end of period$93,248 $96,356 $94,346 $115,010 $151,383 (3)%(38)%
Residential mortgage loans serviced for others$12,964,361 $12,746,125 $12,533,045 $12,276,943 $15,707,519 %(17)%
MSR as % of serviced portfolio0.72 %0.76 %0.75 %0.94 %0.96 %(0.04)(0.24)






Umpqua Reports Third Quarter 2020 Results
October 21, 2020
Page 21

Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(Unaudited)
Nine Months Ended% Change
(Dollars in thousands)Sep 30, 2020Sep 30, 2019Year over Year
Residential mortgage banking revenue:
Origination and sale$224,831 $68,956 226 %
Servicing26,209 33,218 (21)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(15,249)(20,171)(24)%
Changes due to valuation inputs or assumptions(43,997)(14,243)209 %
Total$191,794 $67,760 183 %
Closed loan volume:
Portfolio$774,126 $1,411,512 (45)%
For-sale4,897,068 2,029,682 141 %
Total$5,671,194 $3,441,194 65 %
Gain on sale margin:
Based on for-sale volume4.59 %3.40 %1.19 
Residential mortgage servicing rights:
Balance, beginning of period$115,010 $169,025 (32)%
Additions for new MSR capitalized37,484 16,772 123 %
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(15,249)(20,171)(24)%
Changes due to valuation inputs or assumptions(43,997)(14,243)209 %
Balance, end of period$93,248 $151,383 (38)%



###