Exhibit 99.1
FOR IMMEDIATE RELEASE |
|
UMPQUA HOLDINGS REPORTS RECORD FULL YEAR 2006
OPERATING EARNINGS OF $1.65 PER DILUTED SHARE
Organic Loan growth 11%, deposit growth 13%
Opened Five New Stores in the Fourth Quarter
PORTLAND, Ore. – January 25, 2007 – Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York, Inc., today announced full year 2006 operating earnings of $87.3 million, or $1.65 per diluted share, compared to $69.9 million, or $1.55 per diluted share, for 2005. For the fourth quarter of 2006, operating earnings were $24.8 million, or $0.42 per diluted share, compared to $18.8 million, or $0.42 per diluted share for the same period a year ago. Operating earnings exclude merger related expenses, net of tax.
Including merger related expenses, net income for full year 2006 was $84.4 million, or $1.59 per diluted share, compared to $69.7 million, or $1.55 per diluted share for 2005. For the fourth quarter of 2006, net income was $24.5 million, or $0.42 per diluted share, compared to $18.8 million, or $0.42 per diluted share for the same period of the prior year.
Quarter ended: | Twelve months ended: | |||||||||||||||||||||
(Dollars in thousands, except per share | ||||||||||||||||||||||
data) | 12/31/2006 | 9/30/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||||||
Net Income | $ | 24,533 | $ | 22,856 | $ | 18,787 | $ | 84,447 | $ | 69,735 | ||||||||||||
Add Back: Merger related | ||||||||||||||||||||||
expenses, net of tax | 249 | 1,471 | -- | 2,864 | 157 | |||||||||||||||||
Operating Earnings | $ | 24,782 | $ | 24,327 | $ | 18,787 | $ | 87,311 | $ | 69,892 | ||||||||||||
Earnings per diluted share: | ||||||||||||||||||||||
Net Income | $ | 0.42 | $ | 0.39 | $ | 0.42 | $ | 1.59 | $ | 1.55 | ||||||||||||
Operating Earnings | $ | 0.42 | $ | 0.42 | $ | 0.42 | $ | 1.65 | $ | 1.55 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 2 of 12
Total consolidated assets as of December 31, 2006 were $7.3 billion, compared to $5.4 billion a year ago. Total gross loans and leases, and deposits, were $5.4 billion and $5.8 billion, respectively, as of December 31, 2006, compared to $3.9 billion and $4.3 billion, respectively, a year ago. The Company completed the acquisition of Western Sierra Bancorp in June 2006.
The following table presents the full year 2006 organic growth rates, which exclude the effects of the Western Sierra Bancorp acquisition:
(in thousands) | Loans and Leases | Deposits | Assets | ||||||||||||
As reported, 12/31/06 | $ | 5,361,862 | $ | 5,840,294 | $ | 7,344,236 | |||||||||
less: 12/31/05 balances | 3,921,631 | 4,286,266 | 5,360,639 | ||||||||||||
Total growth | 1,440,231 | 1,554,028 | 1,983,597 | ||||||||||||
less: acquisition | 1,022,231 | 1,016,053 | 1,491,466 | ||||||||||||
Organic growth | $ | 418,000 | $ | 537,975 | $ | 492,131 | |||||||||
Organic growth rate | 11% | 13% | 9% |
"We are pleased with our record operating earnings, and growth in loans and deposits this year, especially in light of the challenging interest rate environment,” said Ray Davis, president and chief executive officer of Umpqua Holdings Corporation.
Umpqua opened seven new stores in 2006, including five during the fourth quarter. Two were the first of the Company’s new neighborhood store strategy, which reduces build time and cost by more than 50%.
During the full year 2006, the Company had net charge-offs of $0.6 million or 0.01% of average loans and leases. Non-performing loans and leases were $9.1 million at December 31, 2006, representing 0.17% of total loans and leases. The Company provided $2.6 million for future credit losses in 2006. For the fourth quarter, the Company had net charge-offs of $0.5 million, or 0.04% of average loans and leases on an annualized basis, with non-performing loans and leases declining $1.5 million, or 14% from September 30, 2006. The allowance for credit losses was 1.15% of total loans and leases at December 31, 2006.
Umpqua Bank, Umpqua Holdings’ bank subsidiary, reported on a tax equivalent basis a net interest margin of 4.99% for the full year 2006, compared to 5.07% for 2005. For the fourth quarter of 2006, Umpqua Bank reported a net interest margin of 4.97%, compared to 5.06% for the same period a year ago, and 5.08% for the third quarter of 2006. The decrease in margin over these time periods resulted from increases in short-term market interest rates, with the cost of deposits and borrowings increasing more than earning asset yields. The yield on earning assets for Umpqua Holdings increased 1 basis point on a sequential quarter basis to 7.50%, while the cost of interest bearing liabilities increased 16 basis points to 3.61% over the same period.
Excluding merger related expenses, the Bank efficiency ratio was 51.97% for the full year 2006, down from 52.47% for 2005.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 3 of 12
As of December 31, 2006, total shareholders’ equity was $1.16 billion. Book value per share was $19.91, an increase of 20% over the prior year end. Tangible book value per share was $8.21, an increase of 11% over the prior year end.
On January 18, 2007, the Company announced the acquisition of North Bay Bancorp. The agreement provides for North Bay Bancorp shareholders to receive 1.217 shares of Umpqua common stock for each share of North Bay Bancorp common stock, giving the acquisition a total value of approximately $156 million. The boards of both companies have approved the transaction, which is subject to regulatory approval and approval by the shareholders of North Bay Bancorp, as well as other customary conditions of closing.
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. Umpqua believes that providing non-GAAP financial measures provides investors with information useful in understanding Umpqua’s financial performance. Umpqua provides measures based on “operating earnings,” which exclude merger-related expenses. Operating earnings per diluted share is calculated by dividing operating earnings by the same diluted share total used in determining diluted earnings per share.
A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the attached financial tables or where the non-GAAP measure is presented.
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 use of technology, and distinctive banking solutions. Umpqua Bank has 134 locations between Sacramento, Calif. and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns retail brokerage subsidiary Strand, Atkinson, Williams & York, Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visitwww.umpquaholdingscorp.com.
Umpqua Holdings Corporation will conduct a quarterly earnings conference call Thursday, January 25, 2007, at 10:00 a.m. PST (1:00 p.m. EST) during which the Company will discuss fourth quarter and full year 2006 results and provide an update on recent activities. There will be a question-and-answer session following the presentation. Shareholders, analysts and other interested parties are invited to join the call by dialing 888-791-1856 a few minutes before 10:00 a.m. The password is “UMPQUA.” Information to be discussed in the teleconference will be available on the Company’s website prior to the call at www.umpquaholdingscorp.com. A rebroadcast can be found approximately one hour after the conference call by dialing 866-502-6119, or by visiting that website.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 4 of 12
Umpqua Holdings Corporation | |||||||||||||
Consolidated Statements of Income | |||||||||||||
(Unaudited) | |||||||||||||
Quarter Ended: | |||||||||||||
Dollars in thousands, except per share data | December 31, 2006 | September 30, 2006 | December 31, 2005 | ||||||||||
Interest income | |||||||||||||
Loans and leases | $ | 106,757 | $ | 106,320 | $ | 68,980 | |||||||
Investments - taxable | 7,032 | 6,797 | 6,909 | ||||||||||
Investments - tax exempt | 1,124 | 1,127 | 705 | ||||||||||
Other interest | 1,521 | 389 | 281 | ||||||||||
Dividends | 80 | 105 | 43 | ||||||||||
Total interest income | 116,514 | 114,738 | 76,918 | ||||||||||
Interest expense | |||||||||||||
Deposits | 38,769 | 34,121 | 18,668 | ||||||||||
Repurchase agreements and | |||||||||||||
fed funds purchased | 483 | 2,155 | 788 | ||||||||||
Trust preferred securities | 3,856 | 3,971 | 2,887 | ||||||||||
Other borrowings | 117 | 692 | 26 | ||||||||||
Total interest expense | 43,225 | 40,939 | 22,369 | ||||||||||
Net interest income | 73,289 | 73,799 | 54,549 | ||||||||||
Provision for loan and lease losses | 125 | 2,352 | 68 | ||||||||||
Non-interest income | |||||||||||||
Service charges | 7,435 | 7,606 | 5,671 | ||||||||||
Brokerage fees | 2,241 | 2,506 | 2,574 | ||||||||||
Mortgage banking revenue | 1,768 | 1,445 | 1,592 | ||||||||||
Gain (loss) on sale of securities | (20 | ) | -- | 13 | |||||||||
Other income | 2,689 | 1,919 | 1,624 | ||||||||||
Total non-interest income | 14,113 | 13,476 | 11,474 | ||||||||||
Non-interest expense | |||||||||||||
Salaries and benefits | 27,315 | 26,387 | 21,119 | ||||||||||
Occupancy and equipment | 8,845 | 8,540 | 6,160 | ||||||||||
Other | 12,465 | 13,308 | 10,838 | ||||||||||
Merger related expenses | 415 | 2,451 | -- | ||||||||||
Total non-interest expense | 49,040 | 50,686 | 38,117 | ||||||||||
Income before income taxes | 38,237 | 34,237 | 27,838 | ||||||||||
Provision for income tax | 13,704 | 11,381 | 9,051 | ||||||||||
Net income | $ | 24,533 | $ | 22,856 | $ | 18,787 | |||||||
Weighted average shares outstanding | 58,045,755 | 57,802,381 | 44,514,893 | ||||||||||
Weighted average diluted shares outstanding | 58,774,890 | 58,452,461 | 45,078,683 | ||||||||||
Earnings per share – Basic | $ | 0.42 | $ | 0.40 | $ | 0.42 | |||||||
Earnings per share – Diluted | $ | 0.42 | $ | 0.39 | $ | 0.42 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 5 of 12
Umpqua Holdings Corporation | |||||||||
(Unaudited) | |||||||||
Twelve Months Ended: | |||||||||
Dollars in thousands, except per share data | December 31, 2006 | December 31, 2005 | |||||||
Interest income | |||||||||
Loans and leases | $ | 372,201 | $ | 251,715 | |||||
Investments - taxable | 27,233 | 26,268 | |||||||
Investments - tax exempt | 3,809 | 2,544 | |||||||
Other interest | 2,413 | 1,585 | |||||||
Dividends | 285 | 164 | |||||||
Total interest income | 405,941 | 282,276 | |||||||
Interest expense | |||||||||
Deposits | 119,881 | 59,578 | |||||||
Repurchase agreements and | |||||||||
fed funds purchased | 6,829 | 2,207 | |||||||
Trust preferred securities | 14,215 | 10,550 | |||||||
Other borrowings | 2,892 | 659 | |||||||
Total interest expense | 143,817 | 72,994 | |||||||
Net interest income | 262,124 | 209,282 | |||||||
Provision for loan and lease losses | 2,552 | 2,468 | |||||||
Non-interest income | |||||||||
Service charges | 26,975 | 21,697 | |||||||
Brokerage fees | 9,649 | 11,317 | |||||||
Mortgage banking revenue | 7,560 | 6,426 | |||||||
Gain (loss) on sale of securities | (21 | ) | 1,439 | ||||||
Other income | 9,434 | 6,903 | |||||||
Total non-interest income | 53,597 | 47,782 | |||||||
Non-interest expense | |||||||||
Salaries and benefits | 98,840 | 82,467 | |||||||
Occupancy and equipment | 31,752 | 24,693 | |||||||
Other | 46,584 | 39,634 | |||||||
Merger related expenses | 4,773 | 262 | |||||||
Total noninterest expense | 181,949 | 147,056 | |||||||
Income before income taxes | 131,220 | 107,540 | |||||||
Provision for income tax | 46,773 | 37,805 | |||||||
Net income | $ | 84,447 | $ | 69,735 | |||||
Weighted average shares outstanding | 52,310,637 | 44,438,021 | |||||||
Weighted average diluted shares outstanding | 53,050,201 | 45,010,563 | |||||||
Earnings per share – Basic | $ | 1.61 | $ | 1.57 | |||||
Earnings per share – Diluted | $ | 1.59 | $ | 1.55 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results | |||||||||||||||
January 25, 2007 | |||||||||||||||
Page 6 of 12 | |||||||||||||||
Umpqua Holdings Corporation | |||||||||||||||
Consolidated Balance Sheets | |||||||||||||||
(Unaudited) | |||||||||||||||
Dollars in thousands, except per share data | December 31, 2006 | September 30, 2006 | December 31, 2005 | ||||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $ | 169,769 | $ | 151,334 | $ | 151,521 | |||||||||
Temporary investments | 165,879 | 40,700 | 10,233 | ||||||||||||
Trading account securities | 4,204 | 682 | 601 | ||||||||||||
Investments available for sale | 715,187 | 689,841 | 671,868 | ||||||||||||
Investments held to maturity | 8,762 | 9,494 | 8,677 | ||||||||||||
Loans held for sale | 16,053 | 18,951 | 9,061 | ||||||||||||
Loans and leases | 5,361,862 | 5,385,262 | 3,921,631 | ||||||||||||
Less: Allowance for loan and lease losses | (60,090 | ) | (60,475 | ) | (43,885 | ) | |||||||||
Loans and leases, net | 5,301,772 | 5,324,787 | 3,877,746 | ||||||||||||
Restricted equity securities | 15,255 | 15,255 | 14,263 | ||||||||||||
Premises and equipment, net | 101,830 | 99,251 | 88,865 | ||||||||||||
Other real estate owned | -- | 31 | 1,123 | ||||||||||||
Mortgage servicing rights, net | 9,952 | 10,427 | 10,890 | ||||||||||||
Goodwill and other intangibles | 679,493 | 680,722 | 408,503 | ||||||||||||
Other assets | 156,080 | 157,373 | 107,288 | ||||||||||||
Total assets | $ | 7,344,236 | $ | 7,198,848 | $ | 5,360,639 | |||||||||
Liabilities: | |||||||||||||||
Deposits | $ | 5,840,294 | $ | 5,650,338 | $ | 4,286,266 | |||||||||
Securities sold under agreements | |||||||||||||||
to repurchase | 47,985 | 65,471 | 58,865 | ||||||||||||
Fed funds purchased | -- | -- | 55,000 | ||||||||||||
Term Borrowings | 9,513 | 57,072 | 3,184 | ||||||||||||
Notes payable for trust preferred | |||||||||||||||
securities | 203,688 | 203,955 | 165,725 | ||||||||||||
Other liabilities | 86,545 | 80,332 | 53,338 | ||||||||||||
Total liabilities | 6,188,025 | 6,057,168 | 4,622,378 | ||||||||||||
Shareholders' equity: | |||||||||||||||
Common stock | 930,867 | 929,893 | 564,579 | ||||||||||||
Retained earnings | 234,783 | 220,726 | 183,591 | ||||||||||||
Accumulated other comprehensive loss | (9,439 | ) | (8,939 | ) | (9,909 | ) | |||||||||
Total shareholders' equity | 1,156,211 | 1,141,680 | 738,261 | ||||||||||||
Total liabilities and shareholders' equity | $ | 7,344,236 | $ | 7,198,848 | $ | 5,360,639 | |||||||||
Common shares outstanding at period end | 58,080,171 | 58,028,555 | 44,556,269 | ||||||||||||
Book value per share | $ | 19.91 | $ | 19.67 | $ | 16.57 | |||||||||
Tangible book value per share | $ | 8.21 | $ | 7.94 | $ | 7.40 | |||||||||
Tangible equity | $ | 476,718 | $ | 460,958 | $ | 329,758 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results | |||||||||||||||||
January 25, 2007 | |||||||||||||||||
Page 7 of 12 | |||||||||||||||||
Umpqua Holdings Corporation | |||||||||||||||||
Loan Portfolio | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Dollars in thousands | December 31, 2006 | September 30, 2006 | December 31, 2005 | ||||||||||||||
Loans and leases by purpose: | |||||||||||||||||
Commercial real estate | $ | 2,644,931 | $ | 2,683,187 | $ | 2,127,940 | |||||||||||
Residential real estate | 320,412 | 312,639 | 219,254 | ||||||||||||||
Construction | 1,203,657 | 1,238,369 | 652,023 | ||||||||||||||
Total real estate | 4,169,000 | 4,234,195 | 2,999,217 | ||||||||||||||
Commercial | 1,126,189 | 1,085,014 | 853,212 | ||||||||||||||
Leases | 22,870 | 19,514 | 17,385 | ||||||||||||||
Consumer | 41,722 | 44,831 | 50,361 | ||||||||||||||
Other | 2,081 | 1,708 | 1,456 | ||||||||||||||
Total loans and leases | $ | 5,361,862 | $ | 5,385,262 | $ | 3,921,631 | |||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||
Dollars in thousands | December 31, 2006 | September 30, 2006 | December 31, 2005 | ||||||||||||||
Allowance for credit losses | |||||||||||||||||
Balance beginning of period | $ | 60,475 | $ | 58,516 | $ | 43,603 | |||||||||||
Provision for loan and lease losses | 125 | 2,352 | 68 | ||||||||||||||
Acquisition | -- | 184 | -- | ||||||||||||||
Charge-offs | (1,618 | ) | (1,027 | ) | (612 | ) | |||||||||||
Less recoveries | 1,108 | 450 | 826 | ||||||||||||||
Net (charge-offs) recoveries | (510 | ) | (577 | ) | 214 | ||||||||||||
Total Allowance for loan and lease losses | 60,090 | 60,475 | 43,885 | ||||||||||||||
Reserve for unfunded commitments | 1,313 | 2,021 | 1,601 | ||||||||||||||
Total Allowance for credit losses | $ | 61,403 | $ | 62,496 | $ | 45,486 | |||||||||||
Net charge-offs (recoveries) to average | |||||||||||||||||
loans and leases (annualized) | 0.04 | % | 0.04 | % | (0.02 | )% | |||||||||||
Recoveries to gross charge-offs | 68 | % | 44 | % | 135 | % | |||||||||||
Allowance for credit losses to | |||||||||||||||||
loans and leases | 1.15 | % | 1.16 | % | 1.16 | % | |||||||||||
Allowance for credit losses to | |||||||||||||||||
nonperforming loans and leases | 678 | % | 591 | % | 706 | % | |||||||||||
Nonperforming loans and leases | |||||||||||||||||
to total loans and leases | 0.17 | % | 0.20 | % | 0.16 | % | |||||||||||
Nonperforming assets: | |||||||||||||||||
Nonperforming loans and leases | $ | 9,058 | $ | 10,574 | $ | 6,440 | |||||||||||
Real estate owned | -- | 31 | 1,123 | ||||||||||||||
Total nonperforming assets | $ | 9,058 | $ | 10,605 | $ | 7,563 | |||||||||||
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 8 of 12
Umpqua Holdings Corporation | |||||||||||||||||||||||
Loan Portfolio | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Twelve Months Ended Twelve Months Ended | |||||||||||||||||||||||
Dollars in thousands | December 31, 2006 | December 31, 2005 | |||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||
Balance beginning of period | $ | 43,885 | $ | 44,229 | |||||||||||||||||||
Provision for loan and lease losses | 2,552 | 2,468 | |||||||||||||||||||||
Acquisitions | 14,227 | -- | |||||||||||||||||||||
Charge-offs | (4,205 | ) | (7,752 | ) | |||||||||||||||||||
Less recoveries | 3,631 | 4,940 | |||||||||||||||||||||
Net charge-offs | (574 | ) | (2,812 | ) | |||||||||||||||||||
Total Allowance for loan and lease losses | 60,090 | 43,885 | |||||||||||||||||||||
Reserve for unfunded commitments | 1,313 | 1,601 | |||||||||||||||||||||
Total Allowance for credit losses | $ | 61,403 | $ | 45,486 | |||||||||||||||||||
Net charge-offs to average | |||||||||||||||||||||||
loans and leases | 0.01 | % | 0.08 | % | |||||||||||||||||||
Recoveries to gross charge-offs | 86 | % | 64 | % | |||||||||||||||||||
Deposits by Type | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
December 31, 2006 | September 30, 2006 | December 31, 2005 | |||||||||||||||||||||
Dollars in thousands | Amount | Mix | Amount | Mix | Amount | Mix | |||||||||||||||||
Demand, non interest-bearing | $ | 1,222,107 | 20.9 | % | $ | 1,246,499 | 22.1 | % | $ | 987,714 | 23.0 | % | |||||||||||
Demand, interest-bearing | 2,490,386 | 42.7 | % | 2,420,474 | 42.8 | % | 1,771,716 | 41.3 | % | ||||||||||||||
Savings | 368,238 | 6.3 | % | 380,587 | 6.7 | % | 401,632 | 9.4 | % | ||||||||||||||
Time | 1,759,563 | 30.1 | % | 1,602,778 | 28.4 | % | 1,125,204 | 26.3 | % | ||||||||||||||
Total Deposits | $ | 5,840,294 | 100.0 | % | $ | 5,650,338 | 100.0 | % | $ | 4,286,266 | 100.0 | % | |||||||||||
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 9 of 12
Umpqua Holdings Corporation | |||||||||
Selected Ratios | |||||||||
(Unaudited) | |||||||||
Quarter Ended: | |||||||||
December 31, 2006 | September 30, 2006 | December 31, 2005 | |||||||
Net Interest Spread: | |||||||||
Yield on loans and leases | 7.91 | % | 7.88 | % | 7.22 | % | |||
Yield on taxable investments | 4.71 | % | 4.53 | % | 4.39 | % | |||
Yield on tax-exempt investments (1) | 5.51 | % | 6.08 | % | 5.68 | % | |||
Yield on temporary investments | 5.41 | % | 3.99 | % | 3.78 | % | |||
Total yield on earning assets (1) | 7.50 | % | 7.49 | % | 6.77 | % | |||
Cost of interest bearing deposits | 3.44 | % | 3.19 | % | 2.35 | % | |||
Cost of securities sold under agreements | |||||||||
to repurchase and fed funds purchased | 2.90 | % | 4.45 | % | 2.99 | % | |||
Cost of borrowings | 4.19 | % | 4.81 | % | 3.22 | % | |||
Cost of trust preferred securities | 7.50 | % | 7.72 | % | 6.91 | % | |||
Total cost of interest bearing liabilities | 3.61 | % | 3.45 | % | 2.59 | % | |||
Net interest spread (1) | 3.89 | % | 4.04 | % | 4.18 | % | |||
Net interest margin (1) | 4.73 | % | 4.83 | % | 4.81 | % | |||
As reported: | |||||||||
Return on average assets | 1.35 | % | 1.27 | % | 1.42 | % | |||
Return on average tangible assets | 1.49 | % | 1.41 | % | 1.54 | % | |||
Return on average equity | 8.47 | % | 8.06 | % | 10.20 | % | |||
Return on average tangible equity | 20.77 | % | 20.50 | % | 23.01 | % | |||
Excluding merger related expense net of | |||||||||
tax (2): | |||||||||
Return on average assets | 1.37 | % | 1.35 | % | 1.42 | % | |||
Return on average tangible assets | 1.51 | % | 1.50 | % | 1.54 | % | |||
Return on average equity | 8.56 | % | 8.58 | % | 10.20 | % | |||
Return on average tangible equity | 20.98 | % | 21.82 | % | 23.01 | % | |||
Bank Only Ratios: | |||||||||
Umpqua Bank efficiency ratio (2) | 51.66 | % | 51.20 | % | 52.93 | % | |||
Umpqua Bank net interest margin (1) | 4.97 | % | 5.08 | % | 5.06 | % |
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate. |
(2) | Excludes merger related expense, net of tax. |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 10 of 12
Umpqua Holdings Corporation | ||||||
Selected Ratios | ||||||
Twelve Months Ended: | ||||||
December 31, 2006 | December 31, 2005 | |||||
Net Interest Spread: | ||||||
Yield on loans and leases | 7.72 | % | 6.94 | % | ||
Yield on taxable investments | 4.55 | % | 4.31 | % | ||
Yield on tax-exempt investments (1) | 5.69 | % | 6.15 | % | ||
Yield on temporary investments | 4.82 | % | 3.06 | % | ||
Total yield on earning assets (1) | 7.32 | % | 6.51 | % | ||
Cost of interest bearing deposits | 3.09 | % | 1.96 | % | ||
Cost of securities sold under | ||||||
agreements to repurchase and fed funds purchased | 4.09 | % | 2.56 | % | ||
Cost of borrowings | 4.93 | % | 2.11 | % | ||
Cost of trust preferred securities | 7.56 | % | 6.36 | % | ||
Total cost of interest bearing liabilities | 3.35 | % | 2.20 | % | ||
Net interest spread (1) | 3.97 | % | 4.31 | % | ||
Net interest margin (1) | 4.74 | % | 4.84 | % | ||
As reported: | ||||||
Return on average assets | 1.31 | % | 1.38 | % | ||
Return on average tangible assets | 1.43 | % | 1.50 | % | ||
Return on average equity | 8.70 | % | 9.80 | % | ||
Return on average tangible equity | 20.84 | % | 22.91 | % | ||
Excluding merger related expense net of tax (2): | ||||||
Return on average assets | 1.35 | % | 1.38 | % | ||
Return on average tangible assets | 1.48 | % | 1.50 | % | ||
Return on average equity | 9.00 | % | 9.82 | % | ||
Return on average tangible equity | 21.55 | % | 22.96 | % | ||
Bank Only Ratios: | ||||||
Umpqua Bank efficiency ratio (2) | 51.97 | % | 52.47 | % | ||
Umpqua Bank net interest margin (1) | 4.99 | % | 5.07 | % |
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate. |
(2) | Excludes merger related expense, net of tax. |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results | ||||||||||||
January 25, 2007 | ||||||||||||
Page 11 of 12 | ||||||||||||
Umpqua Holdings Corporation | ||||||||||||
Average Balances | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended: | ||||||||||||
Dollars in thousands | December 31, 2006 | September 30, 2006 | December 31, 2005 | |||||||||
Loans held for sale | $ | 17,936 | $ | 19,258 | $ | 13,913 | ||||||
Loans and leases | 5,339,111 | 5,333,728 | 3,778,273 | |||||||||
Earning assets | 6,190,573 | 6,107,193 | 4,525,657 | |||||||||
Goodwill & other intangibles | 680,030 | 681,988 | 406,792 | |||||||||
Total assets | 7,201,791 | 7,135,488 | 5,232,214 | |||||||||
Non interest bearing demand deposits | 1,228,026 | 1,235,838 | 1,017,971 | |||||||||
Interest bearing deposits | 4,474,364 | 4,248,328 | 3,148,531 | |||||||||
Total deposits | 5,702,390 | 5,484,166 | 4,166,502 | |||||||||
Interest bearing liabilities | 4,755,568 | 4,701,582 | 3,422,088 | |||||||||
Total shareholders’ equity | 1,148,682 | 1,124,398 | 730,741 | |||||||||
Tangible equity | 468,652 | 442,410 | 323,949 |
Umpqua Holdings Corporation | ||||||||
Average Balances | ||||||||
(Unaudited) | ||||||||
Twelve Months Ended: | ||||||||
Dollars in thousands | December 31, 2006 | December 31, 2005 | ||||||
Loans held for sale | $ | 15,375 | $ | 15,291 | ||||
Loans and leases | 4,803,509 | 3,613,257 | ||||||
Earning assets | 5,569,619 | 4,353,696 | ||||||
Goodwill & other intangibles | 565,167 | 407,313 | ||||||
Total assets | 6,451,660 | 5,053,417 | ||||||
Non interest bearing demand deposits | 1,121,171 | 967,848 | ||||||
Interest bearing deposits | 3,882,777 | 3,034,305 | ||||||
Total deposits | 5,003,948 | 4,002,153 | ||||||
Interest bearing liabilities | 4,296,287 | 3,317,647 | ||||||
Total shareholders’ equity | 970,394 | 711,765 | ||||||
Tangible equity | 405,227 | 304,452 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2006 Results
January 25, 2007
Page 12 of 12
Umpqua Holdings Corporation | |||||||||||||||
Mortgage Banking Statistical Analysis | |||||||||||||||
(unaudited) | |||||||||||||||
Quarter Ended: | |||||||||||||||
December 31, 2006 | September 30, 2006 | December 31, 2005 | |||||||||||||
Dollars in thousands | |||||||||||||||
Mortgage Servicing Rights (MSR): | |||||||||||||||
Mortgage loans serviced for others | $ | 955,444 | $ | 978,723 | $ | 1,016,092 | |||||||||
MSR Asset (gross) | $ | 13,553 | $ | 13,668 | $ | 13,264 | |||||||||
Less: Valuation reserve | (3,601 | ) | (3,241 | ) | (2,374 | ) | |||||||||
MSR Asset (net of reserve) | $ | 9,952 | $ | 10,427 | $ | 10,890 | |||||||||
MSR as % of serviced portfolio | 1.04 | % | 1.07 | % | 1.07 | % | |||||||||
Dollars in thousands | |||||||||||||||
Mortgage Banking Revenue: | |||||||||||||||
Origination and sale | $ | 1,753 | $ | 2,141 | $ | 1,610 | |||||||||
Servicing | 375 | 360 | 214 | ||||||||||||
MSR valuation reserve change | (360 | ) | (1,056 | ) | (232 | ) | |||||||||
Total Mortgage Banking Revenue | $ | 1,768 | $ | 1,445 | $ | 1,592 | |||||||||
Twelve Months Ended: | |||||||||||||||
December 31, 2006 | December 31, 2005 | ||||||||||||||
Dollars in thousands | |||||||||||||||
Mortgage Banking Revenue: | |||||||||||||||
Origination and sale | $ | 7,354 | $ | 7,266 | |||||||||||
Servicing | 1,433 | 742 | |||||||||||||
MSR valuation reserve change | (1,227 | ) | (1,582 | ) | |||||||||||
Total Mortgage Banking Revenue | $ | 7,560 | $ | 6,426 | |||||||||||
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