EX-99.1 2 umpq-20201231ex991earnings.htm PRESS RELEASE ANNOUNCING FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS Document

EXHIBIT 99.1 
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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 QUARTERLY AND ANNUAL RESULTS

Fourth quarter 2020 net income of $150.7 million, or $0.68 per diluted common share
Full-year 2020 net loss of $1.5 billion, or $6.92 per diluted common share
Annual loan and lease growth of 3% and deposit growth of 10%

 
PORTLAND, Ore. – January 20, 2021 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net income of $150.7 million for the fourth quarter of 2020, compared to $124.9 million for the third quarter of 2020 and $83.8 million for the fourth quarter of 2019. Earnings per diluted common share were $0.68 for the fourth quarter of 2020, compared to $0.57 for the third quarter of 2020 and $0.38 for the fourth quarter of 2019.

For the twelve months ended December 31, 2020, the Company reported net loss of $1.5 billion, or $6.92 per diluted common share primarily due to the goodwill impairment of $1.8 billion in Q1 2020, compared to net income of $354.1 million, or $1.60 per diluted common share, for the twelve months ended December 31, 2019.

“Umpqua’s results in 2020 are a testament to the tremendous strength of this company. Of the many challenges and opportunities that were presented this past year, our ability to stay agile, resilient, and ultimately deliver for our customers, both existing and new, was extraordinary” said Cort O’Haver, president and CEO of Umpqua Holdings Corporation. “Our fourth quarter results represent our capacity to generate a return for our shareholders in a low interest rate environment. The company’s record level of net income was driven by a number of strategic levers. These included the continued performance of our home lending division, accelerated Paycheck Protection Program (PPP) fee recognition due to borrower forgiveness processing, and careful management of the cost of interest bearing deposits. As outlined in the Next Gen 2.0 initiatives we shared last quarter, the company will continue to balance prioritization of strategic investments to propel balance sheet growth, including key human digital initiatives to advance the customer experience and gain market share, supported by increased operational excellence and efficiency.”

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

•$12.1 million increase in compensation and benefits primarily due to the year end true up for performance based variable incentives and deferred compensation calculations compared to the prior quarter.
•$6.5 million in one time software impairment charges primarily due to technology contract exits completed during the quarter.
•$2.9 million in charitable contributions made in the quarter compared to $0.5 million in the prior quarter.
•$9.4 million loss on the fair value of the mortgage servicing rights (MSR) asset due to higher prepayment speeds versus modeled expectations compared to a $12.2 million loss in the prior quarter and a $5.1 million loss in the same period of the prior year.

Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 2

•$4.0 million gain on the fair value of the debt capital market swap derivatives attributable to the increase in long-term interest rates during the quarter. This compares to the $1.8 million gain in the prior quarter and the $5.0 million gain in the same period of the prior year.

Full-Year 2020 Highlights (compared to prior year):

•Gross loan and lease balance growth of $583.7 million, or 3%;
•Deposit balance growth of $2.1 billion, or 10%;
•Net interest income decreased by $38.1 million, driven primarily by a decrease in short and long-term interest rates during the annual period which led to a decline in net interest margin;
•Provision for credit losses increased by $132.3 million primarily due to the implementation of the Current Expected Credit Loss (CECL) accounting standard which uses credit models to forecast future credit losses and fully reserve for the forecasted losses as soon as weak or deteriorating economic conditions are forecasted;
•Non-interest income increased by $72.2 million, driven primarily by a significant increase in net mortgage banking revenue;
•Non-interest expense increased by $1.8 billion, driven by the $1.8 billion goodwill impairment that was recorded in the first quarter and higher salaries and employee benefits expense due to the significant increase in annual net mortgage banking revenue, partially offset by lower occupancy, communications, marketing, services, and other expenses;
•Paid dividends of $0.84 per common share (equal to the $0.84 per share in the prior year) and repurchased 331,000 shares of common stock; and
•Book value decreased by 37%, or $7.31 per common share due to the aforementioned goodwill impairment, and tangible book value1 increased by 7%, or $0.82 per common share.

Fourth Quarter 2020 Highlights (compared to prior quarter):

•Gross loan and lease balances decreased by $647.1 million, or 3%, partially due to processed PPP loan forgiveness, the transfer of $78.1 million in indirect auto loans to loans held for sale, and payoffs in residential real estate.
•Deposit balances decreased by $47.6 million or 0.2%, partially due to the decline in brokered and personal certificates of deposits, partially offset by balance growth in non-interest bearing demand, interest bearing demand, money market, and savings products;
•Net interest income increased by $18.3 million, attributable to the acceleration of PPP fees due to processed borrower forgiveness and lower costs of interest-bearing deposits;
•Provision for credit losses increased by $0.4 million, driven by the continued stabilization of credit quality metrics and economic forecasts used in credit models;
•Net charge-offs increased by 11 basis points to 0.35% of average loans and leases (annualized) primarily due to the previously disclosed leases within the FinPac portfolio that received applicable CARES Act relief and were not able to resume payments after the deferral period expired;
•Non-interest income decreased by $8.0 million reflecting the linked quarter decline in net mortgage banking revenue, partially offset by an increase in the gain on sale of Small Business Association (SBA) loans during the period;
•Non-interest expense increased by $21.1 million, primarily driven by a $12.1 million increase in compensation and benefits due to the year end true up of performance based variable incentives and deferred compensation calculations, $6.5 million in one time software impairment charges, and a $2.4 million increase in charitable contributions, partially offset by lower service expense;
•Non-performing assets to total assets decreased three basis points to 0.24%;
•Estimated total risk-based capital ratio of 15.6% and estimated Tier 1 common to risk weighted assets ratio of 12.3%; and
•Paid a quarterly cash dividend of $0.21 per common share on November 30, 2020, to shareholders of record as of November 20, 2020.

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.
Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 3

Balance Sheet
Total consolidated assets were $29.2 billion as of December 31, 2020, compared to $29.4 billion as of September 30, 2020 and $28.8 billion as of December 31, 2019. Including secured off-balance sheet lines of credit, total available liquidity was $11.5 billion as of December 31, 2020, representing 39% of total assets and 47% of total deposits.

Gross loans and leases were $21.8 billion as of December 31, 2020, a decrease of $647.1 million from $22.4 billion as of September 30, 2020. The decrease in gross loans and leases is primarily due to processed PPP loan forgiveness, the transfer of $78.1 million in indirect auto loans to loans held for sale and payoffs in residential real estate. Please refer to the additional loan tables in the Q4 2020 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $24.6 billion as of December 31, 2020, a decrease of $47.6 million from $24.7 billion as of September 30, 2020. This decrease was primarily attributable to the decline in brokered and personal certificates of deposit balances, partially offset by deposit balance growth in non-interest bearing demand, interest bearing demand, money market, and savings products.

Net Interest Income
Net interest income was $234.9 million for the fourth quarter of 2020, up $18.3 million from the prior quarter. This increase was driven primarily by the acceleration of PPP fees due to processed borrower forgiveness applications and by lower costs of interest-bearing deposits.

The Company’s net interest margin was 3.35% for the fourth quarter of 2020, up 27 basis points from 3.08% for the third quarter of 2020. This increase was driven primarily by the acceleration of PPP fees due to processed borrower forgiveness and lower funding costs.

Credit Quality
The allowance for credit losses was $348.7 million, or 1.60% of loans and leases, as of December 31, 2020, which was down from $369.4 million, or 1.65% of loans and leases, as of September 30, 2020. The provision for credit losses was $29,000 for the fourth quarter of 2020, an increase of $367,000 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 increased by 11 basis points from the prior quarter to 0.35% of average loans and leases for the fourth quarter of 2020 (annualized). The increase in net charge-offs for the quarter was primarily due to the previously disclosed leases within the FinPac portfolio that received applicable CARES Act relief and were not able to resume payments after the deferral period expired. As of December 31, 2020, non-performing assets was 0.24% of total assets, compared to 0.27% as of September 30, 2020 and 0.23% as of December 31, 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. Due to the lack of significant changes in the credit quality of the loan portfolio and offsetting impacts within the economic forecasts compared to the prior quarter we recorded a minimal provision for credit losses in the fourth quarter.


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January 20, 2021
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Non-interest Income
Non-interest income was $124.0 million for the fourth quarter of 2020, down $8.0 million from the prior quarter driven primarily by the decrease in net mortgage banking revenue, partially offset by an increase in the gain on sale of SBA loans during the period.

Revenue from the origination and sale of residential mortgages was $83.4 million for the fourth quarter of 2020, a decrease of $15.3 million from the prior quarter. This decrease reflects a sequential quarter decrease of $153.4 million or 8% in for-sale mortgage origination volume and a decrease of 42 basis points in the home lending gain on sale margin to 4.71% for the fourth quarter of 2020. Of the current quarter’s mortgage production, 48% related to purchase activity, compared to 46% for the prior quarter and 55% for the same period in the prior year.

Non-interest Expense
Non-interest expense was $211.3 million for the fourth quarter of 2020, an increase of $21.1 million from the prior quarter level. This increase was driven by a $12.1 million increase in compensation and benefits due to the year end true up of performance based variable incentives and deferred compensation calculations, $6.5 million in one time software impairment charges due to technology contract exits, and a $2.4 million increase in charitable contributions, partially offset by lower services expense.

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 December 31, 2020, the Company’s book value per common share increased to $12.28 from $11.85 in the prior quarter, and its tangible book value per common share1 increased to $12.21 from $11.77 in the prior quarter.

The Company’s estimated total risk-based capital ratio was 15.6% and its estimated Tier 1 common equity to risk weighted assets ratio was 12.3% as of December 31, 2020. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of December 31, 2020 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.
Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 5

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, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019
Total shareholders' equity$2,704,577 $2,610,244 $2,538,339 $2,507,611 $4,313,915 
Subtract:   
Goodwill2,715 2,715 2,715 2,715 1,787,651 
Other intangible assets, net13,360 14,606 15,853 17,099 18,346 
Tangible common shareholders' equity$2,688,502 $2,592,923 $2,519,771 $2,487,797 $2,507,918 
Total assets$29,235,175 $29,437,441 $29,645,248 $27,540,382 $28,846,809 
Subtract:   
Goodwill2,715 2,715 2,715 2,715 1,787,651 
Other intangible assets, net13,360 14,606 15,853 17,099 18,346 
Tangible assets$29,219,100 $29,420,120 $29,626,680 $27,520,568 $27,040,812 
Common shares outstanding at period end220,226 220,222 220,219 220,175 220,229 
Total shareholders' equity to total assets ratio9.25 %8.87 %8.56 %9.11 %14.95 %
Tangible common equity ratio9.20 %8.81 %8.51 %9.04 %9.27 %
Book value per common share$12.28 $11.85 $11.53 $11.39 $19.59 
Tangible book value per common share$12.21 $11.77 $11.44 $11.30 $11.39 



Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
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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 www.umpquabank.com.
 
Earnings Conference Call Information
The Company will host its fourth quarter 2020 earnings conference call on Thursday, January 21, 2021, 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 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: 7096769. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 7096769. The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at www.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 the impact of Next Gen 2.0 initiatives, 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; whether our human digital initiatives and strategic investments result in improved customer experience, growth and increased market share; 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 Fourth Quarter and Full-Year 2020 Results
January 20, 2021
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Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
  
 Quarter Ended% Change
(In thousands, except per share data)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear over Year
Interest income:     
Loans and leases$240,815 $229,457 $235,174 $245,993 $262,109 5 %(8)%
Interest and dividends on investments:
Taxable11,951 10,168 9,015 16,605 13,361 18 %(11)%
Exempt from federal income tax1,523 1,490 1,520 1,562 1,638 2 %(7)%
Dividends659 710 568 678 579 (7)%14 %
Temporary investments and interest bearing deposits531 474 403 3,331 4,343 12 %(88)%
Total interest income255,479 242,299 246,680 268,169 282,030 5 %(9)%
Interest expense:
Deposits14,567 19,121 26,222 40,290 44,380 (24)%(67)%
Securities sold under agreement to repurchase and federal funds purchased93 84 194 395 431 11 %(78)%
Borrowings2,765 3,271 3,839 4,046 5,080 (15)%(46)%
Junior subordinated debentures3,147 3,249 3,922 4,903 5,325 (3)%(41)%
Total interest expense20,572 25,725 34,177 49,634 55,216 (20)%(63)%
Net interest income234,907 216,574 212,503 218,535 226,814 8 %4 %
Provision (recapture) for credit losses29 (338)87,085 118,085 16,252 (109)%(100)%
Non-interest income:
Service charges on deposits16,654 14,438 11,831 15,638 16,656 15 %0 %
Brokerage revenue4,093 3,686 3,805 4,015 4,027 11 %2 %
Residential mortgage banking revenue, net79,028 90,377 83,877 17,540 34,050 (13)%132 %
Gain (loss) on sale of debt securities, net— — 323 (133)2 0 %(100)%
(Loss) gain on equity securities, net(173)(112)240 814 (84)54 %106 %
Gain on loan and lease sales, net3,374 1,092 1,074 1,167 4,603 209 %(27)%
BOLI income2,067 2,087 2,116 2,129 2,078 (1)%(1)%
Other income (expense)18,917 20,356 12,214 (525)22,417 (7)%(16)%
Total non-interest income123,960 131,924 115,480 40,645 83,749 (6)%48 %
Non-interest expense:
Salaries and employee benefits132,460 120,337 116,676 109,774 108,847 10 %22 %
Occupancy and equipment, net41,758 36,720 36,171 37,001 36,513 14 %14 %
Intangible amortization1,246 1,247 1,246 1,247 1,404 0 %(11)%
FDIC assessments3,014 2,989 3,971 2,542 2,867 1 %5 %
Goodwill impairment— — — 1,784,936 — nmnm
Other expenses32,834 28,914 23,846 27,158 33,812 14 %(3)%
Total non-interest expense211,312 190,207 181,910 1,962,658 183,443 11 %15 %
Income (loss) before provision for income taxes147,526 158,629 58,988 (1,821,563)110,868 (7)%33 %
(Benefit) provision for income taxes(3,204)33,758 6,062 30,384 27,118 (109)%(112)%
Net income (loss)$150,730 $124,871 $52,926 $(1,851,947)$83,750 21 %80 %
Weighted average basic shares outstanding220,225 220,221 220,210 220,216 220,222 0 %0 %
Weighted average diluted shares outstanding220,663 220,418 220,320 220,216 220,671 0 %0 %
Earnings per common share – basic$0.68 $0.57 $0.24 $(8.41)$0.38 19 %79 %
Earnings per common share – diluted$0.68 $0.57 $0.24 $(8.41)$0.38 19 %79 %
nm = not meaningful     


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January 20, 2021
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Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
  
 Year Ended% Change
(In thousands, except per share data)Dec 31, 2020Dec 31, 2019Year over Year
Interest income:   
Loans and leases$951,439 $1,051,077 (9)%
Interest and dividends on investments:
Taxable47,739 56,150 (15)%
Exempt from federal income tax6,095 7,400 (18)%
Dividends2,615 2,269 15 %
Temporary investments and interest bearing deposits4,739 14,180 (67)%
Total interest income1,012,627 1,131,076 (10)%
Interest expense: 
Deposits100,200 167,941 (40)%
Securities sold under agreement to repurchase and federal funds purchased766 2,092 (63)%
Borrowings13,921 17,564 (21)%
Junior subordinated debentures15,221 22,845 (33)%
Total interest expense130,108 210,442 (38)%
Net interest income882,519 920,634 (4)%
Provision for credit losses204,861 72,515 183 %
Non-interest income: 
Service charges on deposits58,561 64,514 (9)%
Brokerage revenue15,599 15,877 (2)%
Residential mortgage banking revenue, net270,822 101,810 166 %
Gain (loss) on sale of debt securities, net190 (7,184)(103)%
Gain on equity securities, net769 83,475 (99)%
Gain on loan and lease sales, net6,707 10,467 (36)%
BOLI income8,399 8,406 0 %
Other income50,962 62,459 (18)%
Total non-interest income412,009 339,824 21 %
Non-interest expense: 
Salaries and employee benefits479,247 420,373 14 %
Occupancy and equipment, net151,650 144,236 5 %
Intangible amortization4,986 5,618 (11)%
FDIC assessments12,516 11,233 11 %
Goodwill impairment1,784,936 — nm
Other expenses112,752 137,580 (18)%
Total non-interest expense2,546,087 719,040 254 %
(Loss) income before provision for income taxes(1,456,420)468,903 (411)%
Provision for income taxes67,000 114,808 (42)%
Net (loss) income$(1,523,420)$354,095 (530)%
Weighted average basic shares outstanding220,218 220,339 0 %
Weighted average diluted shares outstanding220,218 220,650 0 %
Earnings per common share – basic$(6.92)$1.61 (530)%
Earnings per common share – diluted$(6.92)$1.60 (533)%
nm = not meaningful   




Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
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Umpqua Holdings Corporation
Consolidated Balance Sheets
(Unaudited)
    % Change
(In thousands, except per share data)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear over Year
Assets:     
Cash and due from banks$370,219 $370,595 $410,769 $406,426 $382,598 0 %(3)%
Interest bearing cash and temporary investments2,202,962 1,849,132 1,853,505 1,251,290 980,158 19 %125 %
Investment securities:     
Equity and other, at fair value83,077 82,769 81,958 80,797 80,165 0 %4 %
Available for sale, at fair value2,932,558 2,898,700 2,865,690 2,890,475 2,814,682 1 %4 %
Held to maturity, at amortized cost3,034 3,088 3,143 3,200 3,260 (2)%(7)%
Loans held for sale, at fair value766,225 683,960 605,399 481,541 513,431 12 %49 %
Loans and leases21,779,367 22,426,473 22,671,455 21,251,478 21,195,684 (3)%3 %
Allowance for credit losses on loans and leases(328,401)(345,049)(356,745)(291,420)(157,629)(5)%108 %
Net loans and leases21,450,966 22,081,424 22,314,710 20,960,058 21,038,055 (3)%2 %
Restricted equity securities41,666 50,062 54,062 58,062 46,463 (17)%(10)%
Premises and equipment, net178,050 185,104 192,041 195,390 201,460 (4)%(12)%
Operating lease right-of-use assets104,937 107,321 111,487 115,485 110,718 (2)%(5)%
Goodwill2,715 2,715 2,715 2,715 1,787,651 0 %(100)%
Other intangible assets, net13,360 14,606 15,853 17,099 18,346 (9)%(27)%
Residential mortgage servicing rights, at fair value92,907 93,248 96,356 94,346 115,010 0 %(19)%
Bank owned life insurance323,470 326,120 324,873 322,717 320,611 (1)%1 %
Other assets669,029 688,597 712,687 660,781 434,201 (3)%54 %
Total assets$29,235,175 $29,437,441 $29,645,248 $27,540,382 $28,846,809 (1)%1 %
Liabilities:     
Deposits$24,622,201 $24,669,783 $24,844,378 $22,699,375 $22,481,504 0 %10 %
Securities sold under agreements to repurchase375,384 388,028 398,414 346,245 311,308 (3)%21 %
Borrowings771,482 996,520 1,096,559 1,196,597 906,635 (23)%(15)%
Junior subordinated debentures, at fair value255,217 247,045 232,936 195,521 274,812 3 %(7)%
Junior subordinated debentures, at amortized cost88,268 88,325 88,382 88,439 88,496 0 %0 %
Operating lease liabilities113,593 115,790 119,885 123,962 119,429 (2)%(5)%
Deferred tax liability, net5,441 13,239 21,439 51,061 52,928 (59)%(90)%
Other liabilities299,012 308,467 304,916 331,571 297,782 (3)%0 %
Total liabilities26,530,598 26,827,197 27,106,909 25,032,771 24,532,894 (1)%8 %
Shareholders' equity:     
Common stock3,514,599 3,512,153 3,510,145 3,507,680 3,514,000 0 %0 %
(Accumulated deficit) retained earnings(932,767)(1,036,931)(1,115,414)(1,168,340)770,366 (10)%(221)%
Accumulated other comprehensive income 122,745 135,022 143,608 168,271 29,549 (9)%315 %
Total shareholders' equity2,704,577 2,610,244 2,538,339 2,507,611 4,313,915 4 %(37)%
Total liabilities and shareholders' equity$29,235,175 $29,437,441 $29,645,248 $27,540,382 $28,846,809 (1)%1 %
Common shares outstanding at period end220,226 220,222 220,219 220,175 220,229 0 %0 %
Book value per common share$12.28 $11.85 $11.53 $11.39 $19.59 4 %(37)%
Tangible book value per common share$12.21 $11.77 $11.44 $11.30 $11.39 4 %7 %
Tangible equity - common$2,688,502 $2,592,923 $2,519,771 $2,487,797 $2,507,918 4 %7 %
Tangible common equity to tangible assets9.20 %8.81 %8.51 %9.04 %9.27 %0.39 (0.07)

Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 10



Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)
    
(Dollars in thousands)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019% Change
 AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Loans and leases:     
Commercial real estate:     
Non-owner occupied term, net$3,505,802 $3,533,776 $3,589,484 $3,613,420 $3,545,566 (1)%(1)%
Owner occupied term, net2,333,945 2,411,098 2,459,954 2,472,187 2,496,088 (3)%(6)%
Multifamily, net3,349,196 3,389,034 3,466,829 3,464,217 3,514,774 (1)%(5)%
Construction & development, net828,478 757,462 662,703 667,975 678,740 9 %22 %
Residential development, net192,761 163,400 164,180 187,594 189,010 18 %2 %
Commercial:
Term, net (1)
4,024,467 4,246,229 4,265,092 2,317,573 2,232,817 (5)%80 %
Lines of credit & other, net862,760 894,782 940,443 1,208,051 1,212,393 (4)%(29)%
Leases & equipment finance, net1,456,630 1,496,650 1,522,369 1,492,762 1,465,489 (3)%(1)%
Residential real estate:
Mortgage, net3,871,906 4,042,416 4,056,588 4,193,908 4,215,424 (4)%(8)%
Home equity loans & lines, net1,136,064 1,172,697 1,189,428 1,249,152 1,237,512 (3)%(8)%
   Consumer & other, net217,358 318,929 354,385 384,639 407,871 (32)%(47)%
Total loans, net of deferred fees and costs$21,779,367 $22,426,473 $22,671,455 $21,251,478 $21,195,684 (3)%3 %
(1)The Bank participates in 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 14,900 PPP loans, totaling $1.8 billion, net of deferred fees and costs as of December 31, 2020.
Loan and leases mix:
Commercial real estate:
   Non-owner occupied term, net16 %16 %16 %17 %17 %
   Owner occupied term, net11 %11 %11 %12 %12 %
   Multifamily, net15 %15 %15 %16 %16 %
Construction & development, net4 %3 %3 %3 %3 %
Residential development, net1 %1 %1 %1 %1 %
Commercial: 
Term, net18 %19 %19 %11 %10 %
Lines of credit & other, net4 %4 %4 %5 %6 %
Leases & equipment finance, net7 %7 %7 %7 %7 %
Residential real estate: 
Mortgage, net18 %18 %18 %20 %20 %
Home equity loans & lines, net5 %5 %5 %6 %6 %
   Consumer & other, net1 %1 %1 %2 %2 %
    Total100 %100 %100 %100 %100 %



Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 11


Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
    
(Dollars in thousands)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019% Change
 AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Deposits:     
Demand, non-interest bearing$9,632,773 $9,475,244 $9,172,210 $7,169,907 $6,913,375 2 %39 %
Demand, interest bearing3,051,487 2,931,990 2,813,722 2,482,908 2,524,534 4 %21 %
Money market7,173,920 7,160,838 7,262,777 7,082,011 6,930,815 0 %4 %
Savings1,912,752 1,848,639 1,730,051 1,486,909 1,471,475 3 %30 %
Time2,851,269 3,253,072 3,865,618 4,477,640 4,641,305 (12)%(39)%
Total$24,622,201 $24,669,783 $24,844,378 $22,699,375 $22,481,504 0 %10 %
Total core deposits (1)
$22,705,377 $22,439,241 $22,095,314 $19,434,228 $19,061,058 1 %19 %
Deposit mix:
Demand, non-interest bearing39 %38 %37 %32 %31 %
Demand, interest bearing12 %12 %11 %11 %11 %
Money market29 %29 %29 %31 %31 %
Savings8 %8 %7 %7 %6 %
Time12 %13 %16 %19 %21 %
Total100 %100 %100 %100 %100 %
Number of open accounts:      
Demand, non-interest bearing420,050 423,658 423,456 416,270 415,254 
Demand, interest bearing72,811 73,812 74,813 75,514 75,900 
Money market58,609 59,083 59,445 59,203 58,888 
Savings160,192 162,234 161,710 159,870 159,948 
Time48,292 52,572 57,501 62,515 62,952 
Total759,954 771,359 776,925 773,372 772,942 
Average balance per account:      
Demand, non-interest bearing$22.9 $22.4 $21.7 $17.2 $16.6   
Demand, interest bearing41.9 39.7 37.6 32.9 33.3   
Money market122.4 121.2 122.2 119.6 117.7   
Savings11.9 11.4 10.7 9.3 9.2   
Time59.0 61.9 67.2 71.6 73.7   
Total$32.4 $32.0 $32.0 $29.4 $29.1   
 
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.



Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 12


Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
 (Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear over Year
Non-performing assets:     
Loans and leases on non-accrual status$31,076 $26,425 $32,412 $39,128 $26,244 18 %18 %
Loans and leases past due 90+ days and accruing (1)
36,361 50,269 39,818 47,185 37,969 (28)%(4)%
Total non-performing loans and leases67,437 76,694 72,230 86,313 64,213 (12)%5 %
Other real estate owned1,810 2,369 2,578 3,020 3,295 (24)%(45)%
Total non-performing assets$69,247 $79,063 $74,808 $89,333 $67,508 (12)%3 %
Performing restructured loans and leases$14,991 $15,819 $15,032 $20,541 $18,576 (5)%(19)%
Loans and leases past due 31-89 days$72,047 $66,155 $40,583 $59,962 $41,882 9 %72 %
Loans and leases past due 31-89 days to total loans and leases0.33 %0.29 %0.18 %0.28 %0.20 %  
Non-performing loans and leases to total loans and leases (1)
0.31 %0.34 %0.32 %0.41 %0.30 %  
Non-performing assets to total assets (1)
0.24 %0.27 %0.25 %0.32 %0.23 %  

(1)Excludes non-performing 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, and $4.3 million at September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively. There were no non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so at December 31, 2020.

Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 13


Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended% Change
(Dollars in thousands)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$345,049 $356,745 $291,420 $157,629 $156,288 (3)%121 %
Impact of adoption of CECL— — — 49,999 — nmnm
Adjusted balance, beginning of period345,049 356,745 291,420 207,628 156,288 (3)%121 %
Provision for credit losses on loans and leases (1)
3,104 1,785 81,484 105,502 16,252 74 %(81)%
Charge-offs(23,942)(16,646)(19,453)(24,455)(18,734)44 %28 %
Recoveries4,190 3,165 3,294 2,745 3,823 32 %10 %
Net charge-offs(19,752)(13,481)(16,159)(21,710)(14,911)47 %32 %
Balance, end of period$328,401 $345,049 $356,745 $291,420 $157,629 (5)%108 %
Reserve for unfunded commitments
Balance, beginning of period$24,306 $26,368 $20,927 $5,106 $5,085 (8)%378 %
Impact of adoption of CECL— — — 3,238 — nmnm
Adjusted balance, beginning of period24,306 26,368 20,927 8,344 5,085 (8)%378 %
(Recapture) provision for credit losses on unfunded commitments (1)
(4,020)(2,062)5,441 12,583 21 95 %nm
Balance, end of period20,286 24,306 26,368 20,927 5,106 (17)%297 %
Total Allowance for credit losses (ACL)$348,687 $369,355 $383,113 $312,347 $162,735 (6)%114 %
Net charge-offs to average loans and leases (annualized)0.35 %0.24 %0.29 %0.41 %0.28 %
Recoveries to gross charge-offs17.50 %19.01 %16.93 %11.22 %20.41 %
ACLLL to loans and leases1.51 %1.54 %1.57 %1.37 %0.74 %
ACL to loans and leases1.60 %1.65 %1.69 %1.47 %0.77 %
nm = not meaningful
(1) The total provision for credit losses as disclosed in the consolidated statement of operations includes an additional provision of $945,000 related to the provision for accrued interest on loans deferred due to COVID-19, a recapture of $61,000 and an additional provision of $160,000 for the three months ended December 31, 2020, September 30, 2020 and June 30, 2020, respectively, which are not included in the table above.



Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 14

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
Year Ended% Change
(Dollars in thousands)Dec 31, 2020Dec 31, 2019Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$157,629 $144,871 9 %
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)
191,875 72,515 165 %
Charge-offs(84,496)(75,705)12 %
Recoveries13,394 15,948 (16)%
Net charge-offs(71,102)(59,757)19 %
Balance, end of period$328,401 $157,629 108 %
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)
11,942 583 1,948 %
Balance, end of period20,286 5,106 297 %
Total Allowance for credit losses (ACL)$348,687 $162,735 114 %
Net charge-offs to average loans and leases0.32 %0.29 %
Recoveries to gross charge-offs15.85 %21.07 %
nm = not meaningful
(1) The total provision for credit losses for the year ended December 31, 2020, as disclosed in the consolidated statement of operations includes an additional $1.0 million of provision related to accrued interest on loans deferred due to COVID-19, not included in the table above.

Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 15


Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
  
 Quarter Ended% Change
 Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear
over
Year
Average Rates:     
Yield on loans held for sale3.19 %3.13 %3.77 %4.20 %4.25 %0.06 (1.06)
Yield on loans and leases4.24 %3.96 %4.11 %4.58 %4.80 %0.28 (0.56)
Yield on taxable investments1.77 %1.56 %1.38 %2.50 %2.05 %0.21 (0.28)
Yield on tax-exempt investments (1)
3.08 %3.11 %3.17 %3.14 %3.23 %(0.03)(0.15)
Yield on interest bearing cash and temporary investments0.10 %0.10 %0.10 %1.23 %1.65 %— (1.55)
Total yield on earning assets (1)
3.64 %3.45 %3.59 %4.19 %4.36 %0.19 (0.72)
Cost of interest bearing deposits0.38 %0.49 %0.67 %1.03 %1.13 %(0.11)(0.75)
Cost of securities sold under agreements   
to repurchase and fed funds purchased0.09 %0.09 %0.21 %0.47 %0.56 %— (0.47)
Cost of borrowings1.18 %1.23 %1.33 %1.79 %1.96 %(0.05)(0.78)
Cost of junior subordinated debentures3.73 %4.03 %5.55 %5.45 %5.92 %(0.30)(2.19)
Total cost of interest bearing liabilities0.49 %0.59 %0.78 %1.15 %1.27 %(0.10)(0.78)
Net interest spread (1)
3.15 %2.85 %2.81 %3.04 %3.09 %0.30 0.06 
Net interest margin (1)
3.35 %3.08 %3.09 %3.41 %3.51 %0.27 (0.16)
Performance Ratios:   
Return on average assets2.04 %1.68 %0.73 %(25.82)%1.15 %0.36 0.89 
Return on average tangible assets2.04 %1.68 %0.73 %(27.53)%1.22 %0.36 0.82 
Return on average common equity22.92 %19.48 %8.46 %(174.94)%7.70 %3.44 15.22 
Return on average tangible common equity23.07 %19.62 %8.53 %(301.30)%13.24 %3.45 9.83 
Efficiency ratio – Consolidated58.82 %54.52 %55.40 %756.29 %59.00 %4.30 (0.18)
Efficiency ratio – Bank57.77 %53.41 %54.17 %752.92 %57.56 %4.36 0.21 

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




Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 16


Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
  
 Year Ended% Change
 Dec 31, 2020Dec 31, 2019Year over Year
Average Rates:   
Yield on loans held for sale3.49 %4.83 %(1.34)
Yield on loans and leases4.22 %4.96 %(0.74)
Yield on taxable investments1.80 %2.16 %(0.36)
Yield on tax-exempt investments (1)
3.12 %3.40 %(0.28)
Yield on temporary investments and interest bearing cash0.29 %2.06 %(1.77)
Total yield on earning assets (1)
3.71 %4.56 %(0.85)
Cost of interest bearing deposits0.65 %1.12 %(0.47)
Cost of securities sold under agreements  
to repurchase and fed funds purchased0.21 %0.65 %(0.44)
Cost of borrowings1.37 %1.96 %(0.59)
Cost of junior subordinated debentures4.67 %6.12 %(1.45)
Total cost of interest bearing liabilities0.75 %1.26 %(0.51)
Net interest spread (1)
2.96 %3.30 %(0.34)
Net interest margin (1)
3.23 %3.71 %(0.48)
Performance Ratios:  
Return on average assets(5.22)%1.27 %(6.49)
Return on average tangible assets(5.30)%1.35 %(6.65)
Return on average common equity(51.08)%8.42 %(59.50)
Return on average tangible common equity(60.34)%14.77 %(75.11)
Efficiency ratio – Consolidated196.47 %56.97 %139.50 
Efficiency ratio – Bank195.33 %55.40 %139.93 

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




Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 17


Umpqua Holdings Corporation
Average Balances
(Unaudited)
  
 Quarter Ended% Change
(Dollars in thousands)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear over Year
Temporary investments and interest bearing cash$2,066,572 $1,827,818 $1,563,753 $1,084,854 $1,045,975 13 %98 %
Investment securities, taxable2,850,550 2,797,547 2,777,154 2,760,461 2,719,089 2 %5 %
Investment securities, tax-exempt245,997 237,165 235,934 241,105 244,895 4 %0 %
Loans held for sale696,688 669,646 577,773 406,434 415,169 4 %68 %
Loans and leases22,138,283 22,560,076 22,428,142 21,196,989 21,379,239 (2)%4 %
Total interest earning assets27,998,090 28,092,252 27,582,756 25,689,843 25,804,367 0 %9 %
Goodwill and other intangible assets, net16,775 18,021 19,253 1,785,608 1,806,791 (7)%(99)%
Total assets29,396,311 29,533,871 29,066,775 28,844,773 28,981,387 0 %1 %
Non-interest bearing demand deposits9,587,081 9,335,350 8,484,684 6,880,457 7,037,320 3 %36 %
Interest bearing deposits15,165,049 15,451,816 15,803,595 15,695,309 15,550,483 (2)%(2)%
Total deposits24,752,130 24,787,166 24,288,279 22,575,766 22,587,803 0 %10 %
Interest bearing liabilities16,822,808 17,205,775 17,625,888 17,301,712 17,237,770 (2)%(2)%
Shareholders’ equity - common2,615,676 2,549,703 2,514,754 4,257,711 4,317,277 3 %(39)%
Tangible common equity (1)
2,598,901 2,531,682 2,495,501 2,472,103 2,510,486 3 %4 %

Umpqua Holdings Corporation
Average Balances
(Unaudited)
 Year Ended% Change
(Dollars in thousands)Dec 31, 2020Dec 31, 2019Year over Year
Temporary investments and interest bearing cash$1,637,440 $688,258 138 %
Investment securities, taxable2,796,581 2,701,821 4 %
Investment securities, tax-exempt240,054 264,017 (9)%
Loans held for sale588,058 299,560 96 %
Loans and leases22,082,359 20,889,769 6 %
Total interest earning assets27,344,492 24,843,425 10 %
Goodwill and other intangible assets, net457,550 1,808,879 (75)%
Total assets29,211,733 27,971,844 4 %
Non-interest bearing demand deposits8,576,436 6,746,607 27 %
Interest bearing deposits15,527,924 15,057,428 3 %
Total deposits24,104,360 21,804,035 11 %
Interest bearing liabilities17,237,888 16,647,085 4 %
Shareholders’ equity - common2,982,458 4,206,380 (29)%
Tangible common equity (1)
2,524,908 2,397,501 5 %

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



Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 18


Umpqua Holdings Corporation
Average Rates and Balances
(Unaudited)
(dollars in thousands)Quarter Ended
December 31, 2020September 30, 2020December 31, 2019
 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$696,688 $5,554 3.19 %$669,646 $5,248 3.13 %$415,169 $4,408 4.25 %
Loans and leases (1)22,138,283 235,261 4.24 %22,560,076 224,209 3.96 %21,379,239 257,701 4.80 %
Taxable securities2,850,550 12,610 1.77 %2,797,547 10,878 1.56 %2,719,089 13,940 2.05 %
Non-taxable securities (2)245,997 1,893 3.08 %237,165 1,845 3.11 %244,895 1,980 3.23 %
Temporary investments and interest-bearing cash2,066,572 531 0.10 %1,827,818 474 0.10 %1,045,975 4,343 1.65 %
Total interest-earning assets27,998,090 $255,849 3.64 %28,092,252 $242,654 3.45 %25,804,367 $282,372 4.36 %
Other assets1,398,221   1,441,619   3,177,020   
Total assets$29,396,311   $29,533,871   $28,981,387   
INTEREST-BEARING LIABILITIES:         
Interest-bearing demand deposits$3,014,292 $448 0.06 %$2,878,529 $573 0.08 %$2,446,137 $3,485 0.57 %
Money market deposits7,210,906 1,731 0.10 %7,179,705 2,284 0.13 %6,853,118 13,690 0.79 %
Savings deposits1,882,866 183 0.04 %1,790,055 179 0.04 %1,463,744 509 0.14 %
Time deposits3,056,985 12,205 1.59 %3,603,527 16,085 1.78 %4,787,484 26,696 2.21 %
Total interest-bearing deposits15,165,049 14,567 0.38 %15,451,816 19,121 0.49 %15,550,483 44,380 1.13 %
Repurchase agreements and federal funds purchased388,361 93 0.09 %378,844 84 0.09 %303,230 431 0.56 %
Borrowings934,006 2,765 1.18 %1,054,153 3,271 1.23 %1,027,311 5,080 1.96 %
Junior subordinated debentures335,392 3,147 3.73 %320,962 3,249 4.03 %356,746 5,325 5.92 %
Total interest-bearing liabilities16,822,808 $20,572 0.49 %17,205,775 $25,725 0.59 %17,237,770 $55,216 1.27 %
Non-interest-bearing deposits9,587,081   9,335,350   7,037,320   
Other liabilities370,746   443,043   389,020   
Total liabilities26,780,635   26,984,168   24,664,110   
Common equity2,615,676   2,549,703   4,317,277   
Total liabilities and shareholders' equity$29,396,311   $29,533,871   $28,981,387   
NET INTEREST INCOME$235,277   $216,929  $227,156  
NET INTEREST SPREAD 3.15 %  2.85 % 3.09 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)3.35 %  3.08 %3.51 %
(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 $370,000 for the three months ended December 31, 2020 as compared to $355,000 for September 30, 2020 and $342,000 for December 31, 2019. 


Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 19

Umpqua Holdings Corporation
Average Rates and Balances
(Unaudited)
(dollars in thousands)Year Ended
 December 31, 2020December 31, 2019
 Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$588,058 $20,509 3.49 %$299,560 $14,477 4.83 %
Loans and leases (1)
22,082,359 930,930 4.22 %20,889,769 1,036,600 4.96 %
Taxable securities2,796,581 50,354 1.80 %2,701,821 58,419 2.16 %
Non-taxable securities (2)240,054 7,500 3.12 %264,017 8,971 3.40 %
Temporary investments and interest-bearing cash1,637,440 4,739 0.29 %688,258 14,180 2.06 %
Total interest-earning assets27,344,492 $1,014,032 3.71 %24,843,425 $1,132,647 4.56 %
Other assets1,867,241   3,128,419   
Total assets$29,211,733   $27,971,844   
INTEREST-BEARING LIABILITIES:      
Interest-bearing demand deposits$2,754,417 $5,712 0.21 %$2,365,845 $12,040 0.51 %
Money market deposits7,193,470 19,811 0.28 %6,740,502 56,633 0.84 %
Savings deposits1,697,353 801 0.05 %1,467,263 1,746 0.12 %
Time deposits3,882,684 73,876 1.90 %4,483,818 97,522 2.17 %
Total interest-bearing deposits15,527,924 100,200 0.65 %15,057,428 167,941 1.12 %
Repurchase agreements and federal funds purchased370,091 766 0.21 %319,723 2,092 0.65 %
Borrowings1,014,240 13,921 1.37 %896,681 17,564 1.96 %
Junior subordinated debentures325,633 15,221 4.67 %373,253 22,845 6.12 %
Total interest-bearing liabilities17,237,888 $130,108 0.75 %16,647,085 $210,442 1.26 %
Non-interest-bearing deposits8,576,436   6,746,607   
Other liabilities414,951   371,772   
Total liabilities26,229,275   23,765,464   
Common equity2,982,458   4,206,380   
Total liabilities and shareholders' equity$29,211,733   $27,971,844   
NET INTEREST INCOME$883,924  $922,205  
NET INTEREST SPREAD 2.96 % 3.30 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)  3.23 %  3.71 %
(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 $1.4 million for the twelve months ended December 31, 2020 as compared to $1.6 million for the same period in 2019. 


Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 20


Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(Unaudited)
Quarter Ended% Change
(Dollars in thousands)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Seq. QuarterYear
over Year
Residential mortgage banking revenue:
Origination and sale$83,388 $98,703 $86,781 $39,347 $35,438 (16)%135 %
Servicing9,497 8,796 8,533 8,880 8,981 8 %6 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,431)(4,878)(5,042)(5,329)(5,237)(9)%(15)%
Changes due to valuation inputs or assumptions(9,426)(12,244)(6,395)(25,358)(5,132)(23)%84 %
Total$79,028 $90,377 $83,877 $17,540 $34,050 (13)%132 %
Closed loan volume:
Portfolio$304,162 $245,550 $276,247 $252,329 $335,511 24 %(9)%
For-sale1,769,432 1,922,789 1,826,095 1,148,184 1,060,016 (8)%67 %
Total$2,073,594 $2,168,339 $2,102,342 $1,400,513 $1,395,527 (4)%49 %
Gain on sale margin:
Based on for-sale volume4.71 %5.13 %4.75 %3.43 %3.34 %(0.42)1.37 
Residential mortgage servicing rights:
Balance, beginning of period$93,248 $96,356 $94,346 $115,010 $151,383 (3)%(38)%
Additions for new MSR capitalized13,516 14,014 13,447 10,023 8,397 (4)%61 %
Sale of MSR assets— — — — (34,401)0 %(100)%
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,431)(4,878)(5,042)(5,329)(5,237)(9)%(15)%
Changes due to valuation inputs or assumptions(9,426)(12,244)(6,395)(25,358)(5,132)(23)%84 %
Balance, end of period$92,907 $93,248 $96,356 $94,346 $115,010 0 %(19)%
Residential mortgage loans serviced for others$13,026,720 $12,964,361 $12,746,125 $12,533,045 $12,276,943 0 %6 %
MSR as % of serviced portfolio0.71 %0.72 %0.76 %0.75 %0.94 %(0.01)(0.23)


Umpqua Reports Fourth Quarter and Full-Year 2020 Results
January 20, 2021
Page 21

Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(Unaudited)
Year Ended% Change
(Dollars in thousands)Dec 31, 2020Dec 31, 2019Year over Year
Residential mortgage banking revenue:
Origination and sale$308,219 $104,394 195 %
Servicing35,706 42,199 (15)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(19,680)(25,408)(23)%
Changes due to valuation inputs or assumptions(53,423)(19,375)176 %
Total$270,822 $101,810 166 %
Closed loan volume:
Portfolio$1,078,288 $1,747,023 (38)%
For-sale6,666,500 3,089,698 116 %
Total$7,744,788 $4,836,721 60 %
Gain on sale margin:
Based on for-sale volume4.62 %3.38 %1.24 
Residential mortgage servicing rights:
Balance, beginning of period$115,010 $169,025 (32)%
Additions for new MSR capitalized51,000 25,169 103 %
Sale of MSR assets— (34,401)(100)%
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(19,680)(25,408)(23)%
Changes due to valuation inputs or assumptions(53,423)(19,375)176 %
Balance, end of period$92,907 $115,010 (19)%

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