EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contacts:
Ray Davis Ron Farnsworth
President/CEO EVP/Chief Financial Officer
Umpqua Holdings Corporation Umpqua Holdings Corporation
503-727-4101 503-727-4108
raydavis@umpquabank.com ronfarnsworth@umpquabank.com
UMPQUA HOLDINGS REPORTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS
Fourth quarter 2010 net income of $0.07 per diluted share, operating income of $0.08 per diluted share
Full year 2010 net income of $0.15 per diluted share, operating income of $0.12 per diluted share
Non-covered, non-performing assets declined to 1.53% of total assets
Fourth quarter 2010 net charge-offs of $23.7 million, lowest level since the third quarter of 2008
PORTLAND, Ore. – Jan. 27, 2011 –Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Umpqua Investments Inc. today announced fourth quarter 2010 net earnings available to common shareholders of $8.1 million, or $0.07 per diluted common share, compared to a net loss available to common shareholders of $29.9 million, or $0.34 per diluted common share, for the same period in the prior year. For the full year 2010, the Company reported net earnings available to common shareholders of $16.1 million, or $0.15 per diluted common share, compared to a net loss available to common shareholders of $166.3 million, or $2.36 per diluted common share for the prior year.
Operating income, defined as earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, bargain purchase gains on acquisitions, net of tax, merger related expenses, net of tax, and goodwill impairment, was $9.0 million, or $0.08 per diluted common share for the fourth quarter of 2010, compared to an operating loss of $27.7 million, or $0.32 per diluted common share, for the same period in the prior year. For the full year 2010, the Company reported operating income of $13.2 million, or $0.12 per diluted common share, compared to an operating loss of $58.0 million, or $0.82 per diluted common share, for the prior year. Operating income or loss is considered a “non-GAAP” financial measure. More information regarding this measurement and reconciliation to the comparable GAAP measurement is provided under the headingNon-GAAP Financial Measuresbelow.
Significant financial statement items for the fourth quarter of 2010 include:
- Non-covered, non-performing assets ended the quarter at 1.53% of total assets, the lowest level sincethe second quarter of 2008;
- Provision for non-covered loan losses of $17.6 million, a 27% decrease, and total net charge-offs of$23.7 million, a 21% decrease, on a sequential quarter basis. Net charge-offs exceeded the provisionfor non-covered loan losses during the quarter due to improving credit quality of the loan portfolio;
- The allowance for credit losses ended the quarter at 1.82% of non-covered total loans and leases;
- Loss on other real estate owned of $4.9 million, compared to gain of $0.3 million for the third quarterof 2010;
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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- Non-covered loans ended the quarter at $5.66 billion, a decline of $39.3 million, or 0.7%, on asequential quarter basis;
- Core deposits, which are total deposits less time deposits greater than $100,000, increased $187million, or 2.7%, on a sequential quarter basis, due to continued organic growth initiatives;
- Total deposits increased $132 million, or 1%, on a sequential quarter basis;
- The cost of interest bearing deposits for the fourth quarter of 2010 was 0.97%, a decrease of 11 basispoints on a sequential quarter basis;
- Tangible common equity ratio of 8.74%; and
- Total risk-based capital of 17.46%, and tier 1 common to risk weighted asset ratio of 13.1%.
“As we close out 2010 it is good to see loan quality trends continue to move in the right direction and loan production strengthen. Umpqua is emerging from this credit cycle with a much stronger balance sheet than when we entered, and anticipates improved operating results as we head into 2011,” said Ray Davis CEO of Umpqua Holdings Corporation. “We are indebted to the hard work of our credit professionals over the past few years, and the continual efforts of the entire Umpqua team in positioning us for future growth.”
FDIC-assisted acquisitions
In the first quarter of 2010, Umpqua Bank assumed the banking operations of EvergreenBank (“Evergreen”) and Rainier Pacific Bank (“Rainier”), both located in the greater Seattle-Tacoma area of Washington. In the second quarter of 2010, Umpqua Bank assumed the banking operations of Nevada Security Bank (“Nevada Security”), Reno, Nevada. The operations of Evergreen and Rainier (combined), and Nevada Security, have contributed operating earnings of $9.7 million and $2.3 million, respectively, since their assumptions. The operating systems of all three institutions have been converted onto Umpqua’s platform.
Asset quality – Non-covered loan portfolio
Non-performing assets were $178.0 million, or 1.53% of total assets, as of December 31, 2010, compared to $183.6 million, or 1.59% of total assets as of September 30, 2010, and $223.6 million, or 2.38% of total assets as of December 31, 2009. Of this amount, as of December 31, 2010, $138.2 million represented non-accrual loans, $7.1 million represented loans past due greater than 90 days and still accruing interest, and $32.8 million was other real estate owned (“OREO”).
The Company has aggressively charged-down impaired assets to their disposition values, and the assets are expected to be resolved at those levels, absent further declines in market prices. As of December 31, 2010, the non-performing assets of $178.0 million have been written down by 39%, or $111.8 million, from their original balance of $289.8 million.
The provision for loan losses for the fourth quarter of 2010 was $17.6 million, the lowest level of provision since the second quarter of 2008, due to improving credit quality of the loan portfolio. Total net charge-offs for the fourth quarter of 2010 were $23.7 million, reducing the allowance for credit losses to 1.82% of non-covered loans and leases at December 31, 2010, as compared to 1.91% of total non-covered loans as of September 30, 2010 and 1.81% of total non-covered loans as of December 31, 2009. The annualized net charge-off rate for the fourth quarter of 2010 was 1.66%.
Non-covered loans past due 30 to 89 days were $48.2 million, or 0.85% of non-covered loans and leases as of December 31, 2010, as compared to $80.2 million, or 1.41% as of September 30, 2010, and $41.5 million, or 0.69% as of December 31, 2009.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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Since 2007, the Company has been aggressively resolving problems arising from the current economic downturn. The following table recaps the Company’s credit quality trends since the second quarter of 2007 as it relates to the non-covered loan portfolio:
Credit quality trends – Non-covered loans | |||||||||||
(Dollars in thousands) | |||||||||||
Allowance | Non-covered, | ||||||||||
Provision | for credit losses | non-performing | |||||||||
for | Net | to non-covered | 30-89 days | assets to | |||||||
loan loss | charge-offs | loans % | past due % | total assets % | |||||||
Q2 2007 | $ | 3,413 | $ | 31 | 1.17 | % | 0.56 | % | 0.59 | % | |
Q3 2007 | 20,420 | 865 | 1.47 | % | 0.99 | % | 0.96 | % | |||
Q4 2007 | 17,814 | 21,188 | 1.42 | % | 0.64 | % | 1.18 | % | |||
Q1 2008 | 15,132 | 13,476 | 1.45 | % | 1.13 | % | 1.06 | % | |||
Q2 2008 | 25,137 | 37,976 | 1.22 | % | 0.31 | % | 1.25 | % | |||
Q3 2008 | 35,454 | 15,193 | 1.54 | % | 1.16 | % | 1.66 | % | |||
Q4 2008 | 31,955 | 30,072 | 1.58 | % | 0.96 | % | 1.88 | % | |||
Q1 2009 | 59,092 | 59,871 | 1.58 | % | 1.47 | % | 1.82 | % | |||
Q2 2009 | 29,331 | 26,047 | 1.63 | % | 0.80 | % | 1.73 | % | |||
Q3 2009 | 52,108 | 47,342 | 1.71 | % | 0.76 | % | 1.70 | % | |||
Q4 2009 | 68,593 | 64,072 | 1.81 | % | 0.69 | % | 2.38 | % | |||
Q1 2010 | 42,106 | 38,979 | 1.91 | % | 0.93 | % | 1.99 | % | |||
Q2 2010 | 29,767 | 26,637 | 2.00 | % | 0.70 | % | 1.90 | % | |||
Q3 2010 | 24,228 | 30,044 | 1.91 | % | 1.41 | % | 1.59 | % | |||
Q4 2010 | 17,567 | 23,744 | 1.82 | % | 0.85 | % | 1.53 | % | |||
Total | $ | 472,117 | $ | 435,537 |
Non-covered construction loan portfolio
Total non-covered construction loans as of December 31, 2010 were $413 million, representing a decrease of 11% since September 30, 2010, and a decrease of 33% from December 31, 2009. Within this portfolio, the residential development loan segment was $148 million, or 3% of the total non-covered loan portfolio. Of this amount, $35 million represented non-performing loans, and $113 million represented performing loans. The residential development loan segment has decreased $78 million, or 35%, since December 31, 2009.
The remaining $248 million in non-covered construction loans as of December 31, 2010 primarily represents commercial construction projects. Total non-covered, non-performing commercial construction loans were $20.1 million at December 31, 2010, and $8.9 million were past due 30 to 89 days as of December 31, 2010.
Non-covered commercial real estate loan portfolio
The total non-covered term commercial real estate loan portfolio was $3.5 billion as of December 31, 2010. Of this total, $2.3 billion are non-owner occupied and $1.2 billion are owner occupied. Of the total term commercial real estate portfolio, $22.9 million, or 0.66%, are past due 30-89 days as of December 31, 2010. Of the total non-covered commercial real estate portfolio, 9% matures in 2011-2012, 18% in years 2013-2014, and 24% in years 2015-2016. The remaining 49% of the portfolio matures in or after the year 2017.
The portfolio was conservatively underwritten at origination to a minimum debt service coverage ratio of 1.20, and as a result, in many cases, the loan-to-value was substantially less than our in-house maximum of 75%. This underwriting serves to protect against the low capitalization rate environment of the past several years.
During the past two years, the Company has completed several rounds of stress testing on the commercial real estate portfolio, focusing on items such as capitalization rates, interest rates and vacancy factors. The results of the stress testing showed no significant unidentified risks, unlike our experience in the residential
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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development construction portfolio. As we remain in a difficult economic environment, we anticipate that some borrowers will struggle, but that potential issues within the commercial real estate portfolio will result from individual loans within distinct geographic areas and not represent a systemic weakness in the portfolio. We believe we are well positioned to manage the exposure and work with our customers until the economic climate improves.
Non-covered restructured loans
Restructured loans on accrual status were $84.4 million as of December 31, 2010, up 12% from $75.6 million as of September 30, 2010, and down 37% from $134.4 million as of December 31, 2009. The increase during the fourth quarter resulted from certain commercial real estate relationships being restructured in the quarter, and the decrease from the same period in the prior year primarily resulted from payments received and reclassifications of loans previously restructured to non-accrual status. The Company does not enter into restructurings on loans in non-performing status, and generally requires the customer to pledge additional collateral, maintain a minimum debt service coverage ratio of 1.0, and show substantial external sources of repayment prior to the Company agreeing to restructure.
Additional information related to asset quality
Additional tables can be found at the end of this earnings release covering the following aspects of the Company's non-covered loan portfolio: residential development loan trends by region, residential development loan stratification by size and by region, non-performing asset detail by type and by region, loans past due 30 to 89 days by type and by region, loans past due 30 to 89 days trends, restructured loans on accrual status by type and by region, commercial real estate by type and region, maturity and year of origination, along with the commercial construction and commercial loan portfolio by type and by region.
Asset quality – Covered loan portfolio
Covered non-performing assets were $29.9 million, or 0.26% of total assets, as of December 31, 2010, as compared to $53.8 million, or 0.47% of total assets, as of September 30, 2010. The amount at December 31, 2010 represents OREO. The reduction in covered non-performing assets in the current quarter primarily resulted from the reclassification of the remainder of the impaired loan pools to accrual status. As cash flows and other assets have been received in excess of original estimates, the carrying value of these impaired loan pools have decreased and the total expected cash flows associated with the pool have increased, resulting in accretable yield. The majority of accretable yield available to be recognized into interest income in the future primarily relates to principal expected to be received in excess of the carrying value of these loan pools. Contractual interest income on the underlying loans is included in our estimation of pool level expected future cash flows to be received only to the extent that is expected to be serviced by the borrower.
As of acquisition date, covered non-performing assets were written-down to their estimated fair value, incorporating our estimate of future expected cash flows until the ultimate resolution of these credits. The estimated credit losses embedded in these acquired non-performing loan portfolios were based on management’s and third-party consultants’ credit reviews of the portfolios performed during the due diligence for the Evergreen, Rainier and Nevada Security transactions. To the extent actual or projected cash flows are less than originally estimated, additional provisions for loan losses on the covered loan portfolio will be recognized; however, these provisions would be mostly offset by a corresponding increase in the FDIC indemnification (loss sharing) asset recognized within non-interest income. To the extent actual or projected cash flows are more than originally estimated, the increase in cash flows is prospectively recognize d in interest income; however, the increase in interest income would be offset by a corresponding decrease in the FDIC indemnification (loss sharing) asset recognized within non-interest income.
Net interest margin
The Company reported a tax equivalent net interest margin of 4.14% for the fourth quarter of 2010, compared to 4.42% for the third quarter of 2010, and 4.06% for the fourth quarter of 2009. The decrease in net interest margin on a sequential quarter basis resulted primarily from a decline in the average loan to deposit ratio to
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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69% in the fourth quarter, compared to 74% in the third quarter, along with increased prepayments and related premium amortization on the investment portfolio during the quarter. The increase in net interest margin over the same period prior year results from the increase in average covered loans outstanding, increased yield on the covered loan portfolio as a result of payoffs ahead of expectations and declining costs of interest bearing deposits, partially offset by interest reversals of new non-accrual loans, a decline in non-covered loans outstanding, the impact of holding much higher levels of interest bearing cash, and the purchase of low-yielding taxable investment securities. The increase in net interest margin related to covered loan yields was offset by a corresponding decrease to the change in FDIC indemnification asset in other non-interest income. Interest reversals on new non-accrual loans during the fourth quarter of 2010 were 36;0.9 million, negatively impacting the net interest margin by 4 basis points. Excluding the reversals of interest, the net interest margin would have been 4.18% during the quarter. For the thirteenth consecutive quarter, the Company has continued to reduce the cost of interest bearing deposits. As a result of these efforts, the cost of interest bearing deposits was 0.97%, 11 basis points lower than the third quarter of 2010 and 38 basis points lower than the fourth quarter of 2009.
Mortgage banking revenue
The Company generated a record $7.4 million in total mortgage banking revenue during the fourth quarter of 2010, on record closed loan volume of $281 million. In the fourth quarter of 2010, the Company recognized a decrease in the fair value of the mortgage servicing right assets of $1.0 million, resulting from a relatively stable, but historically low, market for mortgage interest rates. Income from the origination and sale of mortgage loans was $7.4 million in the fourth quarter, representing a 3% increase on a sequential quarter basis. As of December 31, 2010, the Company serviced $1.6 billion of mortgage loans for others, and the related mortgage servicing right asset was valued at $14.5 million, or 0.90% of the total serviced portfolio principal balance.
Fair value of junior subordinated debentures
The Company recognized a $0.6 million loss from the change in fair value of junior subordinated debentures during the fourth quarter of 2010. The Company utilizes internal models to determine the valuation of this liability. The majority of the fair value difference over par value relates to the $61.8 million of junior subordinated debentures issued in the third quarter of 2007, which carry interest rate spreads of 135 and 275 basis points over the 3 month LIBOR. As of December 31, 2010, the credit risk adjusted interest spread for potential new issuances was forecasted to be significantly higher than the contractual spread. The difference between these spreads has created a cumulative gain in fair value of the Company’s junior subordinated debentures which results from their carrying amount compared to the estimated amount that would be paid to transfer the liability in an orderly transaction among market participants. Because th ese instruments are no longer being originated in the market, the quarterly fair value adjustments are difficult to estimate, but are not likely to be volatile in the future, and the cumulative fair value adjustment will continue to reverse and be recognized as a reduction in non-interest income over the remaining period to maturity of each related instrument. As of December 31, 2010, the total par value of junior subordinated debentures carried at fair value was $134.0 million, and the fair value was $80.7 million.
Non-interest expense
Total non-interest expense for the fourth quarter of 2010 was $87.9 million, compared to $85.2 million for the third quarter of 2010 and $72.5 million for the fourth quarter of 2009. Included in non-interest expense are several categories which are outside of the operational control of the Company or depend on changes in market values, including FDIC deposit insurance assessments, gain or loss on other real estate owned, as well as infrequently occurring expenses such as merger related costs and goodwill impairments. Excluding these non-controllable or infrequently occurring items, the remaining non-interest expense items totaled $77.8 million for the fourth quarter of 2010, compared to $79.9 million for the third quarter of 2010 and $60.2 million for the fourth quarter of 2009. The decline from the prior quarter results from non-recurring expenses incurred in the third quarter. The increase over the same period prior y ear relates to increases in variable expenses related to the mortgage banking division’s production, the assumption of Evergreen’s, Rainier’s and
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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Nevada Security’s banking operations, higher loan collection and OREO management expenses, as well as various other growth initiatives underway. During the fourth quarter of 2010, the Company incurred loan collection and OREO management expense of $5.3 million, compared to $4.0 million for the third quarter of 2010, and $2.0 million for the fourth quarter of 2009. Mortgage production related expense was $4.9 million in the fourth quarter of 2010, compared to $4.2 million in the third quarter of 2010, and $3.5 million for the fourth quarter of 2009.
Total FDIC deposit insurance assessments during the fourth quarter of 2010 were $4.2 million. The increase over the prior quarter’s assessment of $3.9 million is a result of significantly higher average deposit balances in the current quarter.
Income taxes
The Company recorded a provision for income taxes of $4.2 million in the fourth quarter of 2010. The change in the effective income tax rate in the quarter reflects the effects of permanent differences on our taxable income year to date.
Balance sheet
Total consolidated assets as of December 31, 2010 were $11.7 billion, compared to $11.5 billion on September 30, 2010 and $9.4 billion a year ago. Total gross loans and leases (covered and non-covered), and deposits, were $6.4 billion and $9.4 billion, respectively, as of December 31, 2010, compared to $6.0 billion and $7.4 billion, respectively, as of December 31, 2009.
The following table presents the year-to-date 2010 organic growth rates, which excludes the effects of the Evergreen, Rainier and Nevada Security FDIC-assisted acquisitions and the related run-off of assumed brokered time deposits, which the Bank is not renewing upon maturity:
Non-covered | |||||||||
(Dollars in thousands) | loans and leases | Deposits | Assets | ||||||
As reported, 12/31/10 | $ | 5,658,987 | $ | 9,433,805 | $ | 11,668,710 | |||
Less: 12/31/09 balances | 5,999,267 | 7,440,434 | 9,381,373 | ||||||
Total growth year-to-date | (340,280 | ) | 1,993,371 | 2,287,337 | |||||
Less: | |||||||||
Evergreen acquisition(1) | -- | 272,142 | 353,279 | ||||||
Rainier Pacific acquisition(1) | -- | 416,430 | 721,174 | ||||||
Nevada Security acquisition(1) | -- | 428,329 | 437,595 | ||||||
Add back: | |||||||||
Run-off of assumed brokered time | |||||||||
deposits not renewed | -- | 113,734 | 113,734 | ||||||
Organic growth | $ | (340,280 | ) | $ | 990,204 | $ | 888,023 | ||
Annualized organic growth rate | (5.7 | )% | 13.3 | % | 9.5 | % | |||
(1) Excludes run-off of non-brokered deposits occurring in the quarter of acquisition. |
Total loans held for investment (including covered and non-covered) decreased $94 million during the fourth quarter of 2010. This decrease is principally attributable to non-covered charge-offs, paydowns on the covered loans, and transfers to other real estate owned.
Total deposits increased $132 million, or 1%, during the fourth quarter of 2010. Total deposits have increased $2.0 billion, or 27%, since December 31, 2009. The deposits acquired from the Evergreen, Rainier and Nevada Security acquisitions included $135 million of brokered time deposits as of their respective acquisition dates. The Bank is not renewing these brokered deposits as they mature. Excluding the impact of the deposits assumed in acquisitions of and the run-off of brokered time deposits that have matured, total deposits increased $985 million in 2010, representing a 13.3% annualized organic growth rate.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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Due to unattractive bond market conditions since the second half of 2009, the Company has been holding larger levels of interest bearing cash rather than investing all excess liquidity into the bond market. At December 31, 2010, the Company had $892 million of interest bearing cash earning 0.25%, the target Federal Funds Rate. This excess balance sheet liquidity has increased since the prior year, as investment security alternatives in the current market are less attractive given the historically low interest rate environment. However, beginning in the third quarter of 2010 we began purchasing short duration government-sponsored investment securities to match and offset the interest expense associated with the growth in deposits. The Company plans to hold an increased interest bearing cash position relative to historical levels until the investment alternatives in the market improve from both a return and duration standpoint. Including sec ured off-balance sheet lines of credit, total available liquidity to the Company was $4.8 billion as of December 31, 2010, representing 41% of total assets and 50% of total deposits.
Capital
As of December 31, 2010, total shareholders’ equity was $1.64 billion, comprised entirely of common equity. Book value per common share was $14.34, tangible book value per common share was $8.39 and the ratio of tangible common equity to tangible assets was 8.74% (see explanation and reconciliation these items in the
Non-GAAP Financial Measuressection below).
In April 2010, the Company’s preferred stock (Common Stock Equivalent Series B) of $198.3 million converted into common stock following the Company's annual shareholder meeting at which shareholders of the Company approved, among other items, an increase in authorized total common shares from 100 million to 200 million.
The Company’s estimated total risk-based capital ratio as of December 31, 2010 is 17.46%. This represents a slight decrease from September 30, 2010, as a result of asset growth during the quarter. Our total risk-based capital level is well in excess of the regulatory definition of “well-capitalized” of 10.00%. The Company’s estimated Tier 1 common to risk weighted assets ratio is 13.1% as of December 31, 2010. These capital ratios as of December 31, 2010 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. Umpqua believes that certain non-GAAP financial measures provide investors with information useful in understanding Umpqua’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.
Umpqua recognizes gains or losses on our junior subordinated debentures carried at fair value resulting from changes in interest rates and the estimated market credit risk adjusted spread that do not directly correlate with the Company’s operating performance. Also, Umpqua incurs significant expenses related to the completion and integration of mergers and acquisitions. Additionally, we may recognize goodwill impairment losses that have no direct effect on the Company’s or the Bank’s cash balances, liquidity, or regulatory capital ratios. Lastly, Umpqua may recognize one-time bargain purchase gains on certain FDIC-assisted acquisitions that are not reflective of Umpqua’s on-going earnings power. Accordingly, management believes that our operating results are best measured on a comparative basis excluding the impact of gains or losses on junior subordinated debentures measured at fair value, net of tax, merger-related expens es, net of tax, and other charges related to business combinations such as goodwill impairment charges or bargain purchase gains, net of tax. We defineoperating earnings (loss)as earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, bargain purchase gains on acquisitions, net of tax, merger related expenses, net of tax, and goodwill impairment, and we calculateoperating earnings (loss) per diluted shareby dividing operating earnings by the same diluted share total used in determining diluted earnings per common share.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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The following table provides the reconciliation of earnings (loss) available to common shareholders (GAAP) to operating earnings (loss) (non-GAAP), and earnings (loss) per diluted common share (GAAP) to operating earnings (loss) per diluted share (non-GAAP) for the periods presented:
Sequential | Year over | ||||||||||||||||
Quarter ended: | Quarter | Year | |||||||||||||||
(Dollars in thousands, except per share data) | Dec 31, 2010 | Sep 31, 2010 | Dec 31, 2009 | % Change | % Change | ||||||||||||
Net earnings (loss) available to common | |||||||||||||||||
shareholders | $ | 8,140 | $ | 8,173 | $ | (29,924 | ) | 0 | % | (127 | )% | ||||||
Adjustments: | |||||||||||||||||
Net loss on junior subordinated debentures | |||||||||||||||||
carried at fair value, net of tax(1) | 332 | 332 | 2,215 | 0 | % | (85 | )% | ||||||||||
Merger related expenses, net of tax(1) | 574 | 986 | -- | (42 | )% | nm | |||||||||||
Operating earnings (loss) | $ | 9,046 | $ | 9,491 | $ | (27,709 | ) | (5 | )% | (133 | )% | ||||||
Earnings (loss) per diluted share: | |||||||||||||||||
Earnings (loss) available to common shareholders | $ | 0.07 | $ | 0.07 | $ | (0.34 | ) | 0 | % | (121 | )% | ||||||
Operating earnings (loss) | $ | 0.08 | $ | 0.08 | $ | (0.32 | ) | 0 | % | (125 | )% | ||||||
Year over | |||||||||||||||||
Twelve Months Ended: | Year | ||||||||||||||||
(Dollars in thousands, except per share data) | Dec 31, 2010 | Dec 31, 2009 | % Change | ||||||||||||||
Net earnings (loss) available to common | |||||||||||||||||
shareholders | $ | 16,067 | $ | (166,262 | ) | (110 | )% | ||||||||||
Adjustments: | |||||||||||||||||
Net gain on junior subordinated debentures | |||||||||||||||||
carried at fair value, net of tax(1) | (2,988 | ) | (3,889 | ) | (23 | )% | |||||||||||
Bargain purchase gain on acquisitions, net of tax(1) | (3,862 | ) | -- | nm | |||||||||||||
Goodwill impairment | -- | 111,952 | (100 | )% | |||||||||||||
Merger related expenses, net of tax(1) | 4,005 | 164 | 2342 | % | |||||||||||||
Operating earnings (loss) | $ | 13,222 | $ | (58,035 | ) | (123 | )% | ||||||||||
Earnings (loss) per diluted share: | |||||||||||||||||
Earnings (loss) available to common shareholders | $ | 0.15 | $ | (2.36 | ) | (106 | )% | ||||||||||
Operating earnings (loss) | $ | 0.12 | $ | (0.82 | ) | (115 | )% |
(1) | Income tax effect of pro forma operating earnings adjustments at 40%. |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
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Management believespre-tax, pre-credit cost operating incomeis a useful financial measure because it enables investors to assess the Company’s ability to generate income and capital to cover credit losses through a credit cycle. Management uses this measure to evaluate core operating results exclusive of credit costs, which are market driven or outside of the Company’s control, to monitor how we are growing core pre-tax income of the Company over time, through organic growth and acquisitions. Pre-tax, pre-credit cost operating income is calculated starting with operating earnings (as defined above) and adding back operating provision for income taxes, preferred stock dividends, earnings allocated to participation securities, provision for loan and lease losses, net gains or losses on other real estate owned and credit related external workout costs. For covered losses and expenses that are subject to loss-share, we have also deducted the associated gain recognized on FDIC indemnification asset.
The following table provides the reconciliation of operating earnings (loss) (non-GAAP) to pre-tax, pre-credit cost operating income (non-GAAP) for the periods presented (the reconciliation of earnings (loss) available to common shareholders (GAAP) to operating earnings (loss) (non-GAAP) is provided in the preceding tables):
Sequential | Year over | ||||||||||||
Quarter ended: | Quarter | Year | |||||||||||
(Dollars in thousands, except per share data) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change | ||||||||
Operating earnings (loss) | $ | 9,046 | $ | 9,491 | $ | (27,709 | ) | (5 | )% | (133 | )% | ||
Adjustments: | |||||||||||||
Non-covered provision for loan and lease losses | 17,567 | 24,228 | 68,593 | (27 | )% | (74 | )% | ||||||
Covered provision for loan and lease losses | 4,484 | 667 | -- | 572 | % | nm | |||||||
Non-covered net loss on other real estate owned | 4,555 | 658 | 9,094 | 592 | % | (50 | )% | ||||||
Covered net loss (gain) on other real estate owned | 328 | (975 | ) | -- | (134 | )% | nm | ||||||
Non-covered loan & OREO workout cost | 3,243 | 1,636 | 1,991 | 98 | % | 63 | % | ||||||
Covered loan & OREO workout cost | 2,029 | 2,397 | -- | (15 | )% | nm | |||||||
Covered losses impact on FDIC indemnification | |||||||||||||
asset | (5,073 | ) | (1,985 | ) | -- | 156 | % | nm | |||||
Operating provision for (benefit from) income taxes | 4,807 | 3,073 | (15,367 | ) | 56 | % | (131 | )% | |||||
Dividends and undistributed earnings allocated to | |||||||||||||
participating securities | 18 | 18 | 8 | 0 | % | 125 | % | ||||||
Preferred stock dividends | -- | -- | 3,234 | nm | (100 | )% | |||||||
Pre-tax, pre-credit cost operating income | $ | 41,004 | $ | 39,208 | $ | 39,844 | 5 | % | 3 | % | |||
Year over | |||||||||||||
Twelve Months Ended: | Year | ||||||||||||
(Dollars in thousands, except per share data) | Dec 31, 2010 | Dec 31, 2009 | % Change | ||||||||||
Operating earnings (loss) | $ | 13,222 | $ | (58,035 | ) | (123 | )% | ||||||
Adjustments: | |||||||||||||
Non-covered provision for loan and lease losses | 113,668 | 209,124 | (46 | )% | |||||||||
Covered provision for loan and lease losses | 5,151 | -- | nm | ||||||||||
Non-covered net loss on other real estate owned | 8,097 | 23,204 | (65 | )% | |||||||||
Covered net gain on other real estate owned | (2,172 | ) | -- | nm | |||||||||
Non-covered loan & OREO workout cost | 9,070 | 5,857 | 55 | % | |||||||||
Covered loan & OREO workout cost | 5,146 | -- | nm | ||||||||||
Covered losses impact on FDIC indemnification asset | (6,293 | ) | -- | nm | |||||||||
Operating provision for (benefit from) income taxes | 3,908 | (43,421 | ) | (109 | )% | ||||||||
Dividends and undistributed earnings allocated to | |||||||||||||
participating securities | 67 | 30 | 123 | % | |||||||||
Preferred stock dividends | 12,192 | 12,866 | (5 | )% | |||||||||
Pre-tax, pre-credit cost operating income | $ | 162,056 | $ | 149,625 | 8 | % |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 10 of 30
Management believestangible common equityand thetangible common equity ratioare meaningful measures of capital adequacy. Tangible common equity is calculated as total shareholders' equity less preferred stock and less goodwill and other intangible assets, net (excluding MSRs). In addition, 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, 2010 | Sep 30, 2010 | Dec 30, 2009 | ||||||
Total shareholders' equity | $ | 1,642,574 | $ | 1,650,503 | $ | 1,566,517 | |||
Subtract: | |||||||||
Preferred stock | -- | -- | 204,335 | ||||||
Goodwill and other intangible assets, net | 681,969 | 683,291 | 639,634 | ||||||
Tangible common shareholders' equity | $ | 960,605 | $ | 967,212 | $ | 722,548 | |||
Total assets | $ | 11,668,710 | $ | 11,531,760 | $ | 9,381,372 | |||
Subtract: | |||||||||
Goodwill and other intangible assets, net | 681,969 | 683,291 | 639,634 | ||||||
Tangible assets | $ | 10,986,741 | $ | 10,848,469 | $ | 8,741,738 | |||
Common shares outstanding at period end | 114,536,814 | 114,531,514 | 86,785,588 | ||||||
Tangible common equity ratio | 8.74 | % | 8.92 | % | 8.27 | % | |||
Tangible book value per common share | $ | 8.39 | $ | 8.44 | $ | 8.33 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 11 of 30
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 184 locations between San Francisco, Calif., and Seattle, Wash., along the Oregon and Northern California Coast, Central Oregon and Northern 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 Bank’s Private Bank Division serves high net worth individuals and non-profits providing customized financial solutions and offerings. 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, Jan. 27, 2011, at 10:00 a.m. PDT (1:00 p.m. EDT) during which the company will discuss fourth quarter and 2010 year end 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 800-752-8363 a few minutes before 10:00 a.m. The conference ID is “33772757.” Information to be discussed in the teleconference will be available on the company’s website prior to the call atwww.umpquaholdingscorp.com.A rebroadcast can be found approximately two hours after the conference call by dialing 800-642-1687 with the conference ID noted above, or by visiting the Company’s website.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about improved credit quality trends, loan production and operating results, our success in resolving remaining credits at the estimated disposition value of related collateral, the mitigating effect of FDIC loss sharing agreements, our expectation that any weakness in our CRE portfolio will arise from local market weakn ess and not a systemic weakness, valuations of junior subordinated debentures and our plans to hold a large interest bearing cash position, relative to historical levels. Specific risks that could cause results to differ from the forward-looking statements are set forth in our filings with the SEC and include, without limitation, unanticipated weakness in loan demand, deterioration in the economy, material reductions in revenue or material increases in expenses, our inability to effectively manage problem credits, unanticipated further declines in real estate values, certain loan assets become ineligible for loss sharing, unanticipated deterioration in the commercial real estate loan portfolio, and continued negative pressure on interest income associated with our large cash position.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 12 of30
Umpqua Holdings Corporation | |||||||||||||
Consolidated Statements of Operations | |||||||||||||
(Unaudited) | |||||||||||||
Interest income | |||||||||||||
Loans and leases | $ | 109,532 | $ | 112,652 | $ | 88,608 | (3 | )% | 24 | % | |||
Interest and dividends on investments: | |||||||||||||
Taxable | 18,323 | 17,421 | 16,570 | 5 | % | 11 | % | ||||||
Exempt from federal income tax | 2,184 | 2,221 | 2,039 | (2 | )% | 7 | % | ||||||
Dividends | 5 | 6 | -- | (17 | )% | 100 | % | ||||||
Temporary investments & interest bearing cash | 633 | 646 | 268 | (2 | )% | 136 | % | ||||||
Total interest income | 130,677 | 132,946 | 107,485 | (2 | )% | 22 | % | ||||||
Interest expense | |||||||||||||
Deposits | 19,076 | 19,913 | 20,190 | (4 | )% | (6 | )% | ||||||
Repurchase agreements and | |||||||||||||
fed funds purchased | 135 | 136 | 153 | (1 | )% | (12 | )% | ||||||
Junior subordinated debentures | 1,954 | 2,047 | 1,957 | (5 | )% | 0 | % | ||||||
Term debt | 2,397 | 2,533 | 641 | (5 | )% | 274 | % | ||||||
Total interest expense | 23,562 | 24,629 | 22,941 | (4 | )% | 3 | % | ||||||
Net interest income | 107,115 | 108,317 | 84,544 | (1 | )% | 27 | % | ||||||
Provision for non-covered loan and lease losses | 17,567 | 24,228 | 68,593 | (27 | )% | (74 | )% | ||||||
Provision for covered loan and lease losses | 4,484 | 667 | -- | 572 | % | nm | |||||||
Non-interest income | |||||||||||||
Service charges | 8,168 | 8,756 | 8,392 | (7 | )% | (3 | )% | ||||||
Brokerage fees | 3,274 | 2,609 | 2,480 | 25 | % | 32 | % | ||||||
Mortgage banking revenue, net | 7,389 | 7,138 | 4,071 | 4 | % | 82 | % | ||||||
Net (loss) gain on investment securities | (87 | ) | 2,287 | (600 | ) | (104 | )% | (86 | )% | ||||
Loss on junior subordinated debentures | |||||||||||||
carried at fair value | (554 | ) | (554 | ) | (3,691 | ) | 0 | % | (85 | )% | |||
Change in FDIC indemnification asset | (5,370 | ) | (11,948 | ) | -- | (55 | )% | nm | |||||
Other income | 2,341 | 3,845 | 2,372 | (39 | )% | (1 | )% | ||||||
Total non-interest income | 15,161 | 12,133 | 13,024 | 25 | % | 16 | % | ||||||
Non-interest expense | |||||||||||||
Salaries and benefits | 44,067 | 42,964 | 32,153 | 3 | % | 37 | % | ||||||
Occupancy and equipment | 12,344 | 11,448 | 10,407 | 8 | % | 19 | % | ||||||
Intangible amortization | 1,357 | 1,356 | 2,122 | 0 | % | (36 | )% | ||||||
FDIC assessments | 4,186 | 3,910 | 3,180 | 7 | % | 32 | % | ||||||
Net loss (gain) on other real estate owned | 4,883 | (317 | ) | 9,094 | (1640 | )% | (46 | )% | |||||
Merger related expenses | 957 | 1,643 | -- | (42 | )% | nm | |||||||
Other | 20,070 | 24,166 | 15,544 | (17 | )% | 29 | % | ||||||
Total non-interest expense | 87,864 | 85,170 | 72,500 | 3 | % | 21 | % | ||||||
Income (loss) before provision for (benefit from) | |||||||||||||
income taxes | 12,361 | 10,385 | (43,525 | ) | 19 | % | (128 | )% | |||||
Provision for (benefit from) income taxes | 4,203 | 2,194 | (16,843 | ) | 92 | % | (125 | )% | |||||
Net income (loss) | 8,158 | 8,191 | (26,682 | ) | 0 | % | (131 | )% | |||||
Dividends and undistributed earnings | |||||||||||||
allocated to participating securities | 18 | 18 | 8 | 0 | % | 125 | % | ||||||
Preferred stock dividend | -- | -- | 3,234 | 0 | % | (100 | )% | ||||||
Net earnings (loss) available to common | |||||||||||||
shareholders | $ | 8,140 | $ | 8,173 | $ | (29,924 | ) | 0 | % | (127 | )% | ||
Weighted average shares outstanding | 114,533,505 | 114,527,619 | 86,782,397 | 0 | % | 32 | % | ||||||
Weighted average diluted shares outstanding | 114,773,205 | 114,760,063 | 86,782,397 | 0 | % | 32 | % | ||||||
Earnings (loss) per common share - basic | $ | 0.07 | $ | 0.07 | $ | (0.34 | ) | 0 | % | (121 | )% | ||
Earnings (loss) per common share - diluted | $ | 0.07 | $ | 0.07 | $ | (0.34 | ) | 0 | % | (121 | )% | ||
nm = not meaningful |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 13 of 30
Umpqua Holdings Corporation | ||||||||
Consolidated Statements of Operations | ||||||||
(Unaudited) | ||||||||
Twelve Months Ended: | ||||||||
(Dollars in thousands, except per share data) | Dec 31, 2010 | Dec 31, 2009 | % Change | |||||
Interest income | ||||||||
Loans and leases | $ | 410,132 | $ | 355,195 | 15 | % | ||
Interest and dividends on investments: | ||||||||
Taxable | 67,388 | 60,195 | 12 | % | ||||
Exempt from federal income tax | 8,839 | 7,794 | 13 | % | ||||
Dividends | 14 | 22 | (36 | )% | ||||
Temporary investments & interest bearing cash | 2,223 | 526 | 323 | % | ||||
Total interest income | 488,596 | 423,732 | 15 | % | ||||
Interest expense | ||||||||
Deposits | 76,241 | 88,742 | (14 | )% | ||||
Repurchase agreements and | ||||||||
fed funds purchased | 517 | 680 | (24 | )% | ||||
Junior subordinated debentures | 7,825 | 9,026 | (13 | )% | ||||
Term debt | 9,229 | 4,576 | 102 | % | ||||
Total interest expense | 93,812 | 103,024 | (9 | )% | ||||
Net interest income | 394,784 | 320,708 | 23 | % | ||||
Provision for non-covered loan and lease losses | 113,668 | 209,124 | (46 | )% | ||||
Provision for covered loan and lease losses | 5,151 | -- | nm | |||||
Non-interest income | ||||||||
Service charges | 34,874 | 32,957 | 6 | % | ||||
Brokerage fees | 11,661 | 7,597 | 53 | % | ||||
Mortgage banking revenue, net | 21,214 | 18,688 | 14 | % | ||||
Net gain (loss) on investment securities | 1,912 | (1,677 | ) | (214 | )% | |||
Gain on junior subordinated debentures | ||||||||
carried at fair value | 4,980 | 6,482 | (23 | )% | ||||
Bargain purchase gain on acquisitions | 6,437 | -- | nm | |||||
Change in FDIC indemnification asset | (16,445 | ) | -- | nm | ||||
Other income | 11,271 | 9,469 | 19 | % | ||||
Total non-interest income | 75,904 | 73,516 | 3 | % | ||||
Non-interest expense | ||||||||
Salaries and benefits | 162,875 | 126,850 | 28 | % | ||||
Occupancy and equipment | 45,940 | 39,673 | 16 | % | ||||
Intangible amortization | 5,389 | 6,165 | (13 | )% | ||||
FDIC assessments | 15,095 | 15,825 | (5 | )% | ||||
Net loss on other real estate owned | 5,925 | 23,204 | (74 | )% | ||||
Goodwill impairment | -- | 111,952 | (100 | )% | ||||
Merger related expenses | 6,675 | 273 | 2345 | % | ||||
Other | 75,839 | 55,461 | 37 | % | ||||
Total non-interest expense | 317,738 | 379,403 | (16 | )% | ||||
Income (loss) before provision for (benefit from) | ||||||||
income taxes | 34,131 | (194,303 | ) | (118 | )% | |||
Provision for (benefit from) income taxes | 5,805 | (40,937 | ) | (114 | )% | |||
Net income (loss) | 28,326 | (153,366 | ) | (118 | )% | |||
Dividends and undistributed earnings | ||||||||
allocated to participating securities | 67 | 30 | 123 | % | ||||
Preferred stock dividend | 12,192 | 12,866 | (5 | )% | ||||
Net earnings (loss) available to common shareholders | $ | 16,067 | $ | (166,262 | ) | (110 | )% | |
Weighted average shares outstanding | 107,922,560 | 70,399,201 | 53 | % | ||||
Weighted average diluted shares outstanding | 108,153,469 | 70,399,201 | 54 | % | ||||
Earnings (loss) per common share – basic | $ | 0.15 | $ | (2.36 | ) | (106 | )% | |
Earnings (loss) per common share – diluted | $ | 0.15 | $ | (2.36 | ) | (106 | )% |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 14 of 30
Umpqua Holdings Corporation | |||||||||||||
Consolidated Balance Sheets | |||||||||||||
(Unaudited) | |||||||||||||
Sequential | Year over | ||||||||||||
Quarter | Year | ||||||||||||
(Dollars in thousands, except per share data) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change | ||||||||
Assets: | |||||||||||||
Cash and due from banks, non-interest bearing | $ | 111,946 | $ | 124,633 | $ | 113,353 | (10 | )% | (1 | )% | |||
Cash and due from banks, interest bearing | 891,634 | 933,911 | 491,462 | (5 | )% | 81 | % | ||||||
Temporary investments | 545 | 5,496 | 598 | (90 | )% | (9 | )% | ||||||
Investment securities: | |||||||||||||
Trading | 3,024 | 2,155 | 2,273 | 40 | % | 33 | % | ||||||
Available for sale | 2,919,180 | 2,599,263 | 1,795,616 | 12 | % | 63 | % | ||||||
Held to maturity | 4,762 | 5,108 | 6,061 | (7 | )% | (21 | )% | ||||||
Loans held for sale | 75,626 | 57,407 | 33,715 | 32 | % | 124 | % | ||||||
Non-covered loans and leases | 5,658,987 | 5,698,267 | 5,999,267 | (1 | )% | (6 | )% | ||||||
Less: Allowance for loan and lease losses | (101,921 | ) | (108,098 | ) | (107,657 | ) | (6 | )% | (5 | )% | |||
Loans and leases, net | 5,557,066 | 5,590,169 | 5,891,610 | (1 | )% | (6 | )% | ||||||
Covered loans and leases, net | 785,898 | 840,759 | -- | (7 | )% | nm | |||||||
Restricted equity securities | 34,475 | 34,665 | 15,211 | (1 | )% | 127 | % | ||||||
Premises and equipment, net | 136,599 | 133,728 | 103,266 | 2 | % | 32 | % | ||||||
Mortgage servicing rights, at fair value | 14,454 | 13,454 | 12,625 | 7 | % | 14 | % | ||||||
Goodwill and other intangibles, net | 681,969 | 683,291 | 639,634 | 0 | % | 7 | % | ||||||
Non-covered other real estate owned | 32,791 | 32,024 | 24,566 | 2 | % | 33 | % | ||||||
Covered other real estate owned | 29,863 | 30,348 | -- | (2 | )% | nm | |||||||
FDIC indemnification asset | 146,413 | 186,600 | -- | (22 | )% | nm | |||||||
Other assets | 242,465 | 258,749 | 251,382 | (6 | )% | (4 | )% | ||||||
Total assets | $ | 11,668,710 | $ | 11,531,760 | $ | 9,381,372 | 1 | % | 24 | % | |||
Liabilities: | |||||||||||||
Deposits | $ | 9,433,805 | $ | 9,301,340 | $ | 7,440,434 | 1 | % | 27 | % | |||
Securities sold under agreements to repurchase | 73,759 | 55,333 | 45,180 | 33 | % | 63 | % | ||||||
Term debt | 262,760 | 268,256 | 76,274 | (2 | )% | 244 | % | ||||||
Junior subordinated debentures, at fair value | 80,688 | 80,146 | 85,666 | 1 | % | (6 | )% | ||||||
Junior subordinated debentures, at amortized cost | 102,866 | 102,946 | 103,188 | 0 | % | 0 | % | ||||||
Other liabilities | 72,258 | 73,236 | 64,113 | (1 | )% | 13 | % | ||||||
Total liabilities | 10,026,136 | 9,881,257 | 7,814,855 | 1 | % | 28 | % | ||||||
Shareholders' equity: | |||||||||||||
Preferred stock | -- | -- | 204,335 | 100 | % | (100 | )% | ||||||
Common stock | 1,540,928 | 1,538,818 | 1,253,288 | 0 | % | 23 | % | ||||||
Retained earnings | 76,701 | 75,502 | 83,939 | 2 | % | (9 | )% | ||||||
Accumulated other comprehensive income | 24,945 | 36,183 | 24,955 | (31 | )% | 0 | % | ||||||
Total shareholders' equity | 1,642,574 | 1,650,503 | 1,566,517 | 0 | % | 5 | % | ||||||
Total liabilities and shareholders' equity | $ | 11,668,710 | $ | 11,531,760 | $ | 9,381,372 | 1 | % | 24 | % | |||
Common shares outstanding at period end | 114,536,814 | 114,531,514 | 86,785,588 | 0 | % | 32 | % | ||||||
Book value per common share | $ | 14.34 | $ | 14.41 | $ | 15.70 | 0 | % | (9 | )% | |||
Tangible book value per common share | $ | 8.39 | $ | 8.44 | $ | 8.33 | (1 | )% | 1 | % | |||
Tangible equity - common | $ | 960,605 | $ | 967,212 | $ | 722,548 | (1 | )% | 33 | % | |||
Tangible common equity to tangible assets | 8.74 | % | 8.92 | % | 8.27 | % | |||||||
nm = not meaningful |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 15 of 30
Umpqua Holdings Corporation | |||||||||||||||||||
Non-covered Loan & Lease Portfolio | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Sequential | Year over | ||||||||||||||||||
(Dollars in thousands) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | Quarter | Year | ||||||||||||||
Non-covered loans & leases: | Amount | Mix | Amount | Mix | Amount | Mix | % Change | % Change | |||||||||||
Commercial real estate: | |||||||||||||||||||
Non-owner occupied | $ | 2,251,996 | 40 | % | $ | 2,307,016 | 40 | % | $ | 2,386,401 | 40 | % | (2 | )% | (6 | )% | |||
Owner occupied | 1,231,479 | 22 | % | 1,184,803 | 21 | % | 1,136,703 | 19 | % | 4 | % | 8 | % | ||||||
Residential real estate | 484,185 | 9 | % | 462,515 | 8 | % | 443,731 | 7 | % | 5 | % | 9 | % | ||||||
Construction | 412,892 | 7 | % | 462,801 | 8 | % | 618,974 | 10 | % | (11 | )% | (33 | )% | ||||||
Total real estate | 4,380,552 | 77 | % | 4,417,135 | 78 | % | 4,585,809 | 76 | % | (1 | )% | (4 | )% | ||||||
Commercial | 1,224,416 | 22 | % | 1,223,012 | 21 | % | 1,354,469 | 23 | % | 0 | % | (10 | )% | ||||||
Leases | 31,008 | 1 | % | 32,428 | 1 | % | 34,528 | 1 | % | (4 | )% | (10 | )% | ||||||
Installment and other | 34,041 | 1 | % | 36,624 | 1 | % | 35,863 | 1 | % | (7 | )% | (5 | )% | ||||||
Deferred loan fees, net | (11,030 | ) | 0 | % | (10,932 | ) | 0 | % | (11,402 | ) | 0 | % | 1 | % | (3 | )% | |||
Total | $ | 5,658,987 | 100 | % | $ | 5,698,267 | 100 | % | $ | 5,999,267 | 100 | % | (1 | )% | (6 | )% |
Umpqua Holdings Corporation | ||||||||||
Covered Loan & Lease Portfolio | ||||||||||
(Unaudited) | ||||||||||
Sequential | ||||||||||
(Dollars in thousands) | Dec 31, 2010 | Sep 30, 2010 | Quarter | |||||||
Amount | Mix | Amount | Mix | % Change | ||||||
Covered loans & leases: | ||||||||||
Commercial real estate | $ | 573,264 | 73 | % | $ | 589,782 | 70 | % | (3 | )% |
Residential real estate | 75,605 | 10 | % | 81,256 | 10 | % | (7 | )% | ||
Construction | 42,213 | 5 | % | 57,250 | 7 | % | (26 | )% | ||
Total real estate | 691,082 | 88 | % | 728,288 | 87 | % | (5 | )% | ||
Commercial | 83,722 | 11 | % | 100,313 | 12 | % | (17 | )% | ||
Installment and other | 11,094 | 1 | % | 12,158 | 1 | % | (9 | )% | ||
Total | $ | 785,898 | 100 | % | $ | 840,759 | 100 | % | (7 | )% |
Covered loan & lease portfolio balances represent the loan portfolios acquired through the assumption of EvergreenBank on January 22, 2010, Rainier Pacific Bank on February 26, 2010, and Nevada Security Bank on June 18, 2010, from the FDIC through whole bank purchase and assumption agreements with loss sharing.
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 16 of 30
Umpqua Holdings Corporation | |||||||||||||||||||
Deposits by Type/Core Deposits | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
|
|
|
|
|
|
| Sequential | Year over | |||||||||||
(Dollars in thousands) | Dec 31, 2010 |
| Sep 30, 2010 |
| Dec 31, 2009 |
| Quarter | Year | |||||||||||
| Amount | Mix |
| Amount | Mix |
| Amount | Mix |
| % Change | % Change | ||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Demand, non-interest bearing | $1,616,687 | 17% |
| $1,578,717 | 17% |
| $1,398,332 | 19% |
| 2% | 15% | ||||||||
Demand, interest bearing | 4,394,773 | 47% |
| 4,178,332 | 45% |
| 3,388,696 | 46% |
| 5% | 30% | ||||||||
Savings | 349,695 | 4% |
| 348,700 | 4% |
| 297,293 | 4% |
| 0% | 18% | ||||||||
Time | 3,072,650 | 33% |
| 3,195,591 | 34% |
| 2,356,113 | 32% |
| (4)% | 30% | ||||||||
Total | $9,433,805 | 100% |
| $9,301,340 | 100% |
| $7,440,434 | 100% |
| 1% | 27% | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total core deposits-ending (1) | $7,242,749 | 77% |
| $7,055,676 | 76% |
| $5,837,024 | 78% |
| 3% | 24% | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Number of open accounts: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Demand, non-interest bearing | 181,055 |
|
| 183,018 |
|
| 157,199 |
|
| (1)% | 15% | ||||||||
Demand, interest bearing | 77,342 |
|
| 76,202 |
|
| 62,883 |
|
| 1% | 23% | ||||||||
Savings | 86,980 |
|
| 87,611 |
|
| 74,884 |
|
| (1)% | 16% | ||||||||
Time | 42,366 |
|
| 44,020 |
|
| 34,249 |
|
| (4)% | 24% | ||||||||
Total | 387,743 |
|
| 390,851 |
|
| 329,215 |
|
| (1)% | 18% | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Average balance per account: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Demand, non-interest bearing | $8.9 |
|
| $8.6 |
|
| $8.9 |
|
|
|
| ||||||||
Demand, interest bearing | 56.8 |
|
| 54.8 |
|
| 53.9 |
|
|
|
| ||||||||
Savings | 4.0 |
|
| 4.0 |
|
| 4.0 |
|
|
|
| ||||||||
Time | 72.5 |
|
| 72.6 |
|
| 68.8 |
|
|
|
| ||||||||
Total | 24.3 |
|
| 23.8 |
|
| 22.6 |
|
|
|
| ||||||||
(1) Core deposits are defined as total deposits less time deposits greater than $100,000. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 17 of 30
Umpqua Holdings Corporation | |||||
Credit Quality – Non-performing Assets | |||||
(Unaudited) | |||||
|
|
|
| Sequential | Year over |
|
| Quarter Ended |
| Quarter | Year |
(Dollars in thousands) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change |
|
|
|
|
| |
Non-covered, non-performing assets: |
|
|
|
|
|
Non-covered loans on non-accrual status | $138,177 | $139,696 | $193,118 | (1)% | (28)% |
Non-covered loans past due 90+ days & accruing | 7,071 | 11,882 | 5,909 | (40)% | 20% |
Total non-performing loans | 145,248 | 151,578 | 199,027 | (4)% | (27)% |
Non-covered other real estate owned | 32,791 | 32,024 | 24,566 | 2% | 33% |
Total | $178,039 | $183,602 | $223,593 | (3)% | (20)% |
|
|
|
|
|
|
Performing restructured loans | $84,442 | $75,577 | $134,439 | 12% | (37)% |
|
|
|
|
|
|
Past due 30-89 days | $48,217 | $80,186 | $41,458 | (40)% | 16% |
Past due 30-89 days to total loans and leases | 0.85% | 1.41% | 0.69% |
|
|
|
|
|
|
|
|
Non-covered, non-performing loans to |
|
|
|
|
|
non-covered loans and leases | 2.57% | 2.66% | 3.32% |
|
|
Non-covered, non-performing assets to total assets | 1.53% | 1.59% | 2.38% |
|
|
|
|
|
|
|
|
Covered non-performing assets: |
|
|
|
|
|
Covered loans on non-accrual status | $-- | $23,391 | $-- | (100)% | nm |
Total non-performing loans | -- | 23,391 | -- | (100)% | nm |
Covered other real estate owned | 29,863 | 30,348 | -- | (2)% | nm |
Total | $29,863 | $53,739 | $-- | (44)% | nm |
|
|
|
|
|
|
Covered non-performing loans to |
|
|
|
|
|
covered loans and leases | --% | 2.78% | --% |
|
|
Covered non-performing assets to total assets | 0.26% | 0.47% | --% |
|
|
|
|
|
|
|
|
Total non-performing assets: |
|
|
|
|
|
Loans on non-accrual status | $138,177 | $163,087 | $193,118 | (15)% | (28)% |
Loans past due 90+ days & accruing | 7,071 | 11,882 | 5,909 | (40)% | 20% |
Total non-performing loans | 145,248 | 174,969 | 199,027 | (17)% | (27)% |
Other real estate owned | 62,654 | 62,372 | 24,566 | 0% | 155% |
Total | $207,902 | $237,341 | $223,593 | (12)% | (7)% |
|
|
|
|
|
|
Non-performing loans to loans and leases | 2.25% | 2.68% | 3.32% |
|
|
Non-performing assets to total assets | 1.78% | 2.06% | 2.38% |
|
|
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 18 of 30
Umpqua Holdings Corporation | |||||
Credit Quality – Allowance for Non-covered Credit Losses | |||||
(Unaudited) | |||||
|
|
|
| Sequential | Year over |
|
| Quarter Ended |
| Quarter | Year |
(Dollars in thousands) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change |
Allowance for non-covered credit losses: |
|
|
|
|
|
Balance beginning of period | $108,098 | $113,914 | $103,136 |
|
|
Provision for non-covered loan and lease losses | 17,567 | 24,228 | 68,593 | (27)% | (74)% |
|
|
|
|
|
|
Charge-offs | (25,770) | (31,418) | (65,502) | (18)% | (61)% |
Recoveries | 2,026 | 1,374 | 1,430 | 47% | 42% |
Net charge-offs | (23,744) | (30,044) | (64,072) | (21)% | (63)% |
|
|
|
|
|
|
Total allowance for non-covered loan and lease losses | 101,921 | 108,098 | 107,657 | (6)% | (5)% |
|
|
|
|
|
|
Reserve for unfunded commitments | 818 | 797 | 731 |
|
|
Total allowance for non-covered credit losses | $102,739 | $108,895 | $108,388 | (6)% | (5)% |
|
|
|
|
|
|
Net charge-offs to average non-covered |
|
|
|
|
|
loans and leases (annualized) | 1.66% | 2.08% | 4.19% |
|
|
Recoveries to gross charge-offs | 7.86% | 4.37% | 2.18% |
|
|
Allowance for credit losses to non-covered |
|
|
|
|
|
loans and leases | 1.82% | 1.91% | 1.81% |
|
|
|
|
|
|
| Twelve Months Ended: |
| |
(Dollars in thousands) | Dec 31, 2010 | Dec 31, 2009 | % Change |
Allowance for non-covered credit losses: |
|
|
|
Balance beginning of period | $107,657 | $95,865 |
|
Provision for non-covered loan and lease losses | 113,668 | 209,124 | (46)% |
|
|
|
|
Charge-offs | (128,501) | (200,867) | (36)% |
Recoveries | 9,097 | 3,535 | 157% |
Net charge-offs | (119,404) | (197,332) | (39)% |
|
|
|
|
Total allowance for non-covered loan and lease losses | 101,921 | 107,657 | (5)% |
|
|
|
|
Reserve for unfunded commitments | 818 | 731 |
|
Total allowance for non-covered credit losses | $102,739 | $108,388 | (5)% |
|
|
|
|
Net charge-offs to average non-covered |
|
|
|
loans and leases (annualized) | 2.06% | 3.23% |
|
Recoveries to gross charge-offs | 7.08% | 1.76% |
|
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 19 of 30
Umpqua Holdings Corporation | |||||
Selected Ratios | |||||
(Unaudited) | |||||
|
| Sequential | Year over | ||
| Quarter Ended: | Quarter | Year | ||
| Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | Change | Change |
Net interest spread: |
|
|
|
|
|
Yield on non-covered loans and leases | 5.73% | 5.77% | 5.75% | (0.04) | (0.02) |
Yield on covered loans and leases | 12.86% | 13.49% | N/A | (0.63) | nm |
Yield on taxable investments | 2.87% | 3.51% | 4.03% | (0.64) | (1.16) |
Yield on tax-exempt investments (1) | 5.74% | 5.71% | 5.81% | 0.03 | (0.07) |
Yield on temporary investments & interest bearing cash | 0.25% | 0.26% | 0.28% | (0.01) | (0.03) |
Total yield on earning assets (1) | 5.05% | 5.41% | 5.15% | (0.36) | (0.10) |
|
|
|
|
|
|
Cost of interest bearing deposits | 0.97% | 1.08% | 1.35% | (0.11) | (0.38) |
Cost of securities sold under agreements |
|
|
|
|
|
to repurchase and fed funds purchased | 0.79% | 1.00% | 1.09% | (0.22) | (0.31) |
Cost of term debt | 3.57% | 3.57% | 3.33% | 0.00 | 0.24 |
Cost of junior subordinated debentures | 4.24% | 4.45% | 4.19% | (0.21) | 0.05 |
Total cost of interest bearing liabilities | 1.12% | 1.24% | 1.45% | (0.12) | (0.33) |
|
|
|
|
|
|
Net interest spread (1) | 3.93% | 4.17% | 3.70% | (0.24) | 0.23 |
Net interest margin – Consolidated (1) | 4.14% | 4.42% | 4.06% | (0.28) | 0.08 |
|
|
|
|
|
|
Net interest margin – Bank (1) | 4.21% | 4.49% | 4.15% | (0.28) | 0.06 |
|
|
|
|
|
|
As reported (GAAP): |
|
|
|
|
|
Return on average assets | 0.28% | 0.29% | (1.27)% | (0.01) | 1.55 |
Return on average tangible assets | 0.29% | 0.31% | (1.37)% | (0.02) | 1.66 |
Return on average common equity | 1.95% | 1.95% | (8.41)% | 0.00 | 10.36 |
Return on average tangible common equity | 3.30% | 3.32% | (15.39)% | (0.02) | 18.69 |
Efficiency ratio – Consolidated | 71.24% | 70.09% | 73.57% | 1.15 | (2.33) |
Efficiency ratio – Bank | 68.90% | 67.07% | 67.99% | 1.83 | 0.91 |
|
|
|
|
|
|
Operating basis (non-GAAP): (2) |
|
|
|
|
|
Return on average assets | 0.31% | 0.34% | (1.18)% | (0.03) | 1.49 |
Return on average tangible assets | 0.33% | 0.36% | (1.26)% | (0.03) | 1.59 |
Return on average common equity | 2.16% | 2.27% | (7.78)% | (0.11) | 9.94 |
Return on average tangible common equity | 3.67% | 3.86% | (14.25)% | (0.19) | 17.92 |
Efficiency ratio – Consolidated | 70.15% | 68.42% | 70.91% | 1.73 | (0.76) |
Efficiency ratio – Bank | 68.12% | 65.72% | 67.99% | 2.40 | 0.13 |
|
|
|
|
|
|
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate. | |||||
(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger related expenses, net of tax. | |||||
|
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 20 of 30
Umpqua Holdings Corporation |
| |||||
Selected Ratios |
| |||||
(Unaudited) |
| |||||
|
|
| ||||
| Year Ended: |
|
| |||
| Dec 31, 2010 | Dec 31, 2009 | Change |
| ||
Net interest spread: |
|
|
|
| ||
Yield on non-covered loans and leases | 5.77% | 5.78% | (0.01) |
| ||
Yield on covered loans and leases | 10.86% | N/A | nm |
| ||
Yield on taxable investments | 3.46% | 4.34% | (0.88) |
| ||
Yield on tax-exempt investments (1) | 5.76% | 5.80% | (0.04) |
| ||
Yield on temporary investments & interest bearing cash | 0.25% | 0.27% | (0.02) |
| ||
Total yield on earning assets (1) | 5.15% | 5.39% | (0.24) |
| ||
|
|
|
|
| ||
Cost of interest bearing deposits | 1.08% | 1.56% | (0.48) |
| ||
Cost of securities sold under agreements |
|
|
|
| ||
to repurchase and fed funds purchased | 0.95% | 1.12% | (0.17) |
| ||
Cost of term debt | 3.53% | 3.53% | (0.00) |
| ||
Cost of junior subordinated debentures | 4.25% | 4.74% | (0.49) |
| ||
Total cost of interest bearing liabilities | 1.24% | 1.70% | (0.46) |
| ||
|
|
|
|
| ||
Net interest spread (1) | 3.91% | 3.69% | 0.22 |
| ||
Net interest margin – Consolidated (1) | 4.17% | 4.09% | 0.08 |
| ||
|
|
|
|
| ||
Net interest margin – Bank (1) | 4.24% | 4.20% | 0.04 |
| ||
|
|
|
|
| ||
As reported (GAAP): |
|
|
|
| ||
Return on average assets | 0.15% | (1.85)% | 2.00 |
| ||
Return on average tangible assets | 0.16% | (2.01)% | 2.17 |
| ||
Return on average common equity | 1.01% | (12.63)% | 13.64 |
| ||
Return on average tangible common equity | 1.76% | (26.91)% | 28.67 |
| ||
Efficiency ratio – Consolidated | 66.90% | 95.34% | (28.44) |
| ||
Efficiency ratio – Bank | 65.08% | 93.77% | (28.69) |
| ||
|
|
|
|
| ||
Operating basis (non-GAAP): (2) |
|
|
|
| ||
Return on average assets | 0.12% | (0.65)% | 0.77 |
| ||
Return on average tangible assets | 0.13% | (0.70)% | 0.83 |
| ||
Return on average common equity | 0.83% | (4.41)% | 5.24 |
| ||
Return on average tangible common equity | 1.45% | (9.39)% | 10.84 |
| ||
Efficiency ratio – Consolidated | 67.11% | 68.25% | (1.14) |
| ||
Efficiency ratio – Bank | 64.54% | 65.08% | (0.54) |
| ||
|
|
|
|
|
| |
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate. | ||||||
(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger related expenses, net of tax. | ||||||
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 21 of 30
Umpqua Holdings Corporation | |||||
Average Balances | |||||
(Unaudited) | |||||
|
| Sequential | Year over | ||
| Quarter Ended: | Quarter | Year | ||
(Dollars in thousands) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change |
|
|
|
|
|
|
Temporary investments & interest bearing cash | $1,007,345 | $993,092 | $384,492 | 1% | 162% |
Investment securities, taxable | 2,550,856 | 1,984,672 | 1,645,629 | 29% | 55% |
Investment securities, tax-exempt | 226,371 | 230,815 | 207,984 | (2)% | 9% |
Loans held for sale | 68,982 | 45,933 | 43,662 | 50% | 58% |
Non-covered loans and leases | 5,691,794 | 5,718,584 | 6,072,606 | 0% | (6)% |
Covered loans and leases | 809,984 | 847,704 | -- | (4)% | nm |
Total earning assets | 10,355,333 | 9,820,800 | 8,354,373 | 5% | 24% |
Goodwill & other intangible assets, net | 681,966 | 684,488 | 640,995 | 0% | 6% |
Total assets | 11,695,980 | 11,159,310 | 9,332,737 | 5% | 25% |
|
|
|
|
|
|
Non-interest bearing demand deposits | 1,624,285 | 1,565,525 | 1,392,988 | 4% | 17% |
Interest bearing deposits | 7,826,703 | 7,345,073 | 5,943,110 | 7% | 32% |
Total deposits | 9,450,988 | 8,910,598 | 7,336,098 | 6% | 29% |
Interest bearing liabilities | 8,343,628 | 7,863,059 | 6,260,408 | 6% | 33% |
|
|
|
|
|
|
Shareholders’ equity - common | 1,659,151 | 1,660,490 | 1,412,324 | 0% | 17% |
Tangible common equity (1) | 977,185 | 976,002 | 771,329 | 0% | 27% |
|
|
| ||
| Year Ended: |
| ||
(Dollars in thousands) | Dec 31, 2010 | Dec 31, 2009 | % Change | |
|
|
|
| |
Temporary investments & interest bearing cash | $883,324 | $193,486 | 357% | |
Investment securities, taxable | 1,946,222 | 1,386,960 | 40% | |
Investment securities, tax-exempt | 227,589 | 198,641 | 15% | |
Loans held for sale | 45,185 | 42,261 | 7% | |
Non-covered loans and leases | 5,783,452 | 6,103,666 | (5)% | |
Covered loans and leases | 681,569 | -- | nm | |
Total earning assets | 9,567,341 | 7,925,014 | 21% | |
Goodwill & other intangible assets, net | 674,597 | 698,223 | (3)% | |
Total assets | 10,830,486 | 8,975,178 | 21% | |
|
|
|
| |
Non-interest bearing demand deposits | 1,529,165 | 1,318,954 | 16% | |
Interest bearing deposits | 7,078,815 | 5,691,785 | 24% | |
Total deposits | 8,607,980 | 7,010,739 | 23% | |
Interest bearing liabilities | 7,578,815 | 6,072,812 | 25% | |
|
|
|
| |
Shareholders’ equity - common | 1,589,393 | 1,315,953 | 21% | |
Tangible common equity (1) | 914,796 | 617,730 | 48% | |
(1) Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average
common shareholders’ equity less average goodwill and other intangible assets, net (excluding MSRs).
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 22 of 30
Umpqua Holdings Corporation | |||||
Mortgage Banking Activity | |||||
(unaudited) | |||||
|
| Sequential | Year over | ||
| Quarter Ended: | Quarter | Year | ||
(Dollars in thousands) | Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change |
|
|
|
|
|
|
Mortgage Servicing Rights (MSR): |
|
|
|
|
|
Mortgage loans serviced for others | $1,603,414 | $1,471,759 | $1,277,832 | 9% | 25% |
MSR Asset, at fair value | 14,454 | 13,454 | $12,625 | 7% | 14% |
|
|
|
|
|
|
MSR as % of serviced portfolio | 0.90% | 0.91% | 0.99% |
|
|
|
|
|
|
|
|
Mortgage Banking Revenue: |
|
|
|
|
|
Origination and sale | $7,395 | $7,188 | $3,804 | 3% | 94% |
Servicing | 1,016 | 1,007 | 805 | 1% | 26% |
Change in fair value of MSR asset | (1,022) | (1,057) | (538) | (3)% | 90% |
Total | $7,389 | $7,138 | $4,071 | 4% | 82% |
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume | $281,086 | $231,952 | $172,303 | 21% | 63% |
|
|
|
|
|
|
| |||||
| Year Ended: |
|
|
| |
(Dollars in thousands) | Dec 31, 2010 | Dec 31, 2009 | % Change |
|
|
|
|
|
|
|
|
Mortgage Banking Revenue: |
|
|
|
|
|
Origination and sale | $21,233 | $18,844 | 13% |
|
|
Servicing | 3,860 | 2,993 | 29% |
|
|
Change in fair value of MSR asset | (3,879) | (3,149) | 23% |
|
|
Total | $21,214 | $18,688 | 14% |
|
|
|
|
|
|
|
|
Closed loan volume | $785,437 | $756,997 | 4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 23 of 30
Additional tables
The following tables present additional detail covering the following aspects of the Company's non-covered loan portfolio.
- Table 1 – Non-covered residential development loan trends by region
- Table 2 – Non-covered residential development loan stratification by size and by region
- Table 3 – Non-covered, non-performing asset detail by type and by region
- Table 4 – Non-covered loans past due 30-89 days by type and by region
- Table 5 – Non-covered loans past due 30-89 days trends
- Table 6 – Non-covered restructured loans on accrual status by type and by region
- Table 7 - Non-covered commercial real estate loan portfolio by type and by region
- Table 8 - Non-covered commercial real estate loan portfolio by type and by year of maturity
- Table 9 - Non-covered commercial real estate loan portfolio by type and by year of origination
- Table 10 - Non-covered commercial construction loan portfolio by type and by region
- Table 11 - Non-covered commercial loan portfolio by type and by region
The following is a geographic distribution of the non-covered residential development portfolio as of December 31, 2010, September 30, 2010 and December 31, 2009:
Table 1- Non-covered residential development loan trends by region
(Dollars in thousands)
% change | Non-performing | Performing | ||||||||||||||
Balance | Balance | Balance | from | loans | Loans | |||||||||||
12/31/09 | 9/30/10 | 12/31/10 | 12/31/09 | 12/31/10 | 12/31/10 | |||||||||||
Northwest Oregon | $ | 88,762 | $ | 69,129 | $ | 64,263 | (28 | )% | $ | 10,191 | $ | 54,072 | ||||
Central Oregon | 9,059 | 4,079 | 3,629 | (60 | )% | 110 | 3,519 | |||||||||
Southern Oregon | 19,006 | 8,774 | 6,256 | (67 | )% | 2,122 | 4,134 | |||||||||
Washington | 8,616 | 7,570 | 9,308 | 8 | % | 3,033 | 6,275 | |||||||||
Greater Sacramento | 74,993 | 52,761 | 49,329 | (34 | )% | 10,761 | 38,568 | |||||||||
Northern California | 25,373 | 18,072 | 15,028 | (41 | )% | 8,369 | 6,659 | |||||||||
Total | $ | 225,809 | $ | 160,385 | $ | 147,813 | (35 | )% | $ | 34,586 | $ | 113,227 | ||||
% of total non-covered | ||||||||||||||||
loan portfolio | 4 | % | 3 | % | 3 | % | 2 | % | ||||||||
Quarter change $ | $ | (32,674 | ) | $ | (15,621 | ) | $ | (12,572 | ) | |||||||
Quarter change % | (13 | )% | (9 | )% | (8 | )% |
The following is a stratification by size and region of the remaining non-covered performing residential development loans as of December 31, 2010:
Table 2 – Non-covered residential development loan stratification by size and by region
(Dollars in thousands) | |||||||||||||||||||||
$250k | $1 million | $3 million | $5 million | $10 million | |||||||||||||||||
$250k | to | to | to | to | and | ||||||||||||||||
and less | $1 million | $3 million | $5 million | $10 million | Greater | Total | |||||||||||||||
Northwest Oregon | $ | 1,955 | $ | 5,646 | $ | 8,189 | $ | 10,277 | $ | 13,541 | $ | 14,464 | $ | 54,072 | |||||||
Central Oregon | 384 | 718 | 2,417 | -- | -- | -- | 3,519 | ||||||||||||||
Southern Oregon | 1,174 | 1,860 | 1,100 | -- | -- | -- | 4,134 | ||||||||||||||
Washington | 601 | 344 | 5,330 | -- | -- | -- | 6,275 | ||||||||||||||
Greater Sacramento | 3,308 | 3,905 | 1,894 | 4,780 | 11,455 | 13,226 | 38,568 | ||||||||||||||
Northern California | 1,489 | 1,026 | 4,144 | -- | -- | -- | 6,659 | ||||||||||||||
Total | $ | 8,911 | $ | 13,499 | $ | 23,074 | $ | 15,057 | $ | 24,996 | $ | 27,690 | $ | 113,227 | |||||||
% of Total | 8 | % | 12 | % | 20 | % | 13 | % | 22 | % | 25 | % | 100 | % |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 24 of 30
The following is a distribution of non-covered, non-performing assets by type and by region as of December 31, 2010:
Table 3 - Non-covered, non-performing asset detail by type and by region
(Dollars in thousands) | |||||||||||||||||||||
Northwest | Central | Southern | Greater | Northern | |||||||||||||||||
Oregon | Oregon | Oregon | Washington | Sacramento | California | Total | |||||||||||||||
Non-accrual loans: | |||||||||||||||||||||
Residential development | $ | 10,191 | $ | 110 | $ | 2,122 | $ | 3,033 | $ | 10,761 | $ | 8,369 | $ | 34,586 | |||||||
Commercial construction | 12,726 | - | - | 472 | - | - | 6,817 | 109 | 20,124 | ||||||||||||
Commercial real estate | 24,180 | 4,816 | 537 | 1,898 | 9,010 | 8,721 | 49,162 | ||||||||||||||
Commercial | 8,296 | 2,557 | 1,088 | 7,203 | 8,726 | 6,435 | 34,305 | ||||||||||||||
Other | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Total | $ | 55,393 | $ | 7,483 | $ | 4,219 | $ | 12,134 | $ | 35,314 | $ | 23,634 | $ | 138,177 | |||||||
Loans 90 days past due: | |||||||||||||||||||||
Residential development | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | |||||||
Commercial construction | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Commercial real estate | 79 | -- | -- | 176 | 2,753 | -- | 3,008 | ||||||||||||||
Commercial | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Other | 3,878 | -- | -- | -- | 185 | -- | 4,063 | ||||||||||||||
Total | $ | 3,957 | $ | -- | $ | -- | $ | 176 | $ | 2,938 | $ | -- | $ | 7,071 | |||||||
Total non-performing loans | $ | 59,350 | $ | 7,483 | $ | 4,219 | $ | 12,310 | $ | 38,252 | $ | 23,634 | $ | 145,248 | |||||||
Other real estate owned: | |||||||||||||||||||||
Residential development | $ | 674 | $ | 1,844 | $ | 1,368 | $ | 112 | $ | -- | $ | 1,118 | $ | 5,116 | |||||||
Commercial construction | 3,443 | 539 | -- | 313 | 4,392 | -- | 8,687 | ||||||||||||||
Commercial real estate | 5,396 | -- | 1,656 | -- | 3,091 | 5,686 | 15,829 | ||||||||||||||
Commercial | -- | -- | -- | -- | -- | - | -- | -- | |||||||||||||
Other | 954 | -- | -- | -- | 481 | 1,724 | 3,159 | ||||||||||||||
Total | $ | 10,467 | $ | 2,383 | $ | 3,024 | $ | 425 | $ | 7,964 | $ | 8,528 | $ | 32,791 | |||||||
Total non-performing assets | $ | 69,817 | $ | 9,866 | $ | 7,243 | $ | 12,735 | $ | 46,216 | $ | 32,162 | $ | 178,039 | |||||||
% of total | 39 | % | 6 | % | 4 | % | 7 | % | 26 | % | 18 | % | 100 | % |
The Company has aggressively charged-down impaired assets to their disposition values. As of December 31, 2010, the non-performing assets of $178.0 million have been written down by 39%, or $111.8 million, from their original balance of $289.8 million.
The following is a distribution of non-covered loans past due 30 to 89 days by loan type by region as of December 31, 2010:
Table 4 – Non-covered loans past due 30-89 days by type and by region
(Dollars in thousands) | ||||||||||||||
Northwest | Central | Southern | Greater | Northern | ||||||||||
Oregon | Oregon | Oregon | Washington | Sacramento | California | Total | ||||||||
Loans 30-89 days past due: | ||||||||||||||
Residential development | $ | -- | $ | -- | $ | -- | $ | -- | $ | 480 | $ | 160 | $ | 640 |
Commercial construction | 373 | -- | -- | -- | 8,525 | -- | 8,898 | |||||||
Commercial real estate | 6,636 | 1,719 | -- | -- | 5,524 | 9,045 | 22,924 | |||||||
Commercial | 1,896 | - | 17 | 1,734 | 2,159 | 3,616 | 9,422 | |||||||
Other | 4,222 | -- | -- | 300 | 1,810 | 1 | 6,333 | |||||||
Total | $ | 13,127 | $ | 1,719 | $ | 17 | $ | 2,034 | $ | 18,498 | $ | 12,822 | $ | 48,217 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 25 of 30
Table 5 –Non-covered loans past due 30-89 days trends | ||||||||||
(Dollars in thousands) | ||||||||||
Sequential | Year | |||||||||
Quarter | Over Year | |||||||||
Dec 31, 2010 | Sep 30, 2010 | Dec 31, 2009 | % Change | % Change | ||||||
Loans 30-89 days past due: | ||||||||||
Residential development | $ | 640 | $ | 13,494 | $ | 8,950 | (95 | )% | (93 | )% |
Commercial construction | 8,898 | 5,491 | 1,235 | 62 | % | 620 | % | |||
Commercial real estate | 22,924 | 38,748 | 18,645 | (41 | )% | 23 | % | |||
Commercial | 9,422 | 16,465 | 8,385 | (43 | )% | 12 | % | |||
Other | 6,333 | 5,988 | 4,243 | 6 | % | 49 | % | |||
Total | $ | 48,217 | $ | 80,186 | $ | 41,458 | (40 | )% | 16 | % |
The following is a distribution of non-covered restructured loans by loan type by region as of December 31, 2010:
Table 6 – Non-covered restructured loans on accrual status by type and by region | |||||||||||||
(Dollars in thousands) | |||||||||||||
Northwest | Central | Southern | Greater | Northern | |||||||||
Oregon | Oregon | Oregon | Washington | Sacramento | California | Total | |||||||
Restructured loans, accrual basis: | |||||||||||||
Residential development | $ | 22,277 | $-- | $ | -- | $ | 5,330 | $ | 21,322 | $ | -- | $ | 48,930 |
Commercial construction | -- | -- | -- | -- | 5,434 | -- | 5,434 | ||||||
Commercial real estate | 9,446 | -- | 3,888 | -- | 11,820 | 3,543 | 28,697 | ||||||
Commercial | -- | -- | -- | -- | -- | 1,202 | 1,202 | ||||||
Other | 179 | -- | -- | -- | -- | -- | 179 | ||||||
Total | $ | 31,902 | $-- | $ | 3,888 | $ | 5,330 | $ | 38,576 | $ | 4,745 | $ | 84,442 |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 26 of 30
The following is a distribution of the non-covered term commercial real estate portfolio by type and by region as ofDecember 31, 2010:
Table 7 – Non-covered commercial real estate loan portfolio by type and by region | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Northwest | Central | Southern | Greater | Northern | |||||||||||||||||
Oregon | Oregon | Oregon | Washington | Sacramento | California | Total | |||||||||||||||
Non-owner occupied: | |||||||||||||||||||||
Commercial building | $ | 134,268 | $ | 3,660 | $ | 34,948 | $ | 37,863 | $ | 77,562 | $ | 102,485 | $ | 390,786 | |||||||
Medical office | 66,564 | 1,081 | 15,087 | 4,172 | 13,681 | 12,272 | 112,857 | ||||||||||||||
Professional office | 152,400 | 7,497 | 50,722 | 29,378 | 119,363 | 58,609 | 417,969 | ||||||||||||||
Storage | 28,290 | 789 | 17,460 | - | 17,105 | 34,113 | 97,757 | ||||||||||||||
Multifamily 5+ | 67,899 | 742 | 10,855 | 5,550 | 8,079 | 23,466 | 116,591 | ||||||||||||||
Resort | 5,432 | -- | 679 | -- | -- | -- | 6,111 | ||||||||||||||
Retail | 204,502 | 4,787 | 30,573 | 12,334 | 158,695 | 57,591 | 468,482 | ||||||||||||||
Residential | 35,278 | 97 | 8,769 | 5,032 | 8,796 | 16,428 | 74,400 | ||||||||||||||
Farmland & agriculture | 4,993 | 188 | 517 | -- | 197 | 18,071 | 23,966 | ||||||||||||||
Apartments | 69,500 | -- | 9,963 | 458 | 17,269 | 17,607 | 114,797 | ||||||||||||||
Assisted living | 59,774 | -- | 67,529 | 1,743 | 4,309 | 7,880 | 141,235 | ||||||||||||||
Hotel/motel | 45,747 | -- | 823 | 11,355 | 17,724 | 5,757 | 81,406 | ||||||||||||||
Industrial | 28,066 | 2,554 | 6,343 | -- | 33,192 | 22,081 | 92,236 | ||||||||||||||
RV park | 31,559 | 655 | 18,307 | -- | 780 | 5,353 | 56,654 | ||||||||||||||
Warehouse | 10,125 | -- | �� | 230 | -- | 1,148 | 1,612 | 13,115 | |||||||||||||
Other | 27,481 | 491 | 3,409 | 1,858 | 3,515 | 6,880 | 43,634 | ||||||||||||||
Total | $ | 971,878 | $ | 22,541 | $ | 276,214 | $ | 109,743 | $ | 481,415 | $ | 390,205 | $ | 2,251,996 | |||||||
Owner occupied: | |||||||||||||||||||||
Commercial building | $ | 160,780 | $ | 2,737 | $ | 28,600 | $ | 17,367 | $ | 73,444 | $ | 106,884 | $ | 389,812 | |||||||
Medical office | 93,370 | 3,814 | 18,410 | 531 | 6,318 | 26,707 | 149,150 | ||||||||||||||
Professional office | 59,839 | 2,242 | 12,044 | 1,381 | 22,028 | 18,139 | 115,673 | ||||||||||||||
Storage | 14,681 | 146 | -- | -- | 1,837 | 12,863 | 29,527 | ||||||||||||||
Multifamily 5+ | 801 | -- | 51 | 3,145 | 146 | -- | 4,143 | ||||||||||||||
Resort | 5,596 | -- | 4,247 | -- | 3,050 | 1,038 | 13,931 | ||||||||||||||
Retail | 47,212 | 2,428 | 10,833 | 2,302 | 46,013 | 51,152 | 159,940 | ||||||||||||||
Residential | 5,980 | -- | 2,599 | -- | 1,698 | 2,204 | 12,481 | ||||||||||||||
Farmland & agriculture | 9,869 | -- | 802 | 2,000 | -- | 45,676 | 58,347 | ||||||||||||||
Apartments | 1,042 | -- | 721 | -- | 642 | -- | 2,405 | ||||||||||||||
Assisted living | 47,558 | -- | 115 | -- | 6,799 | 15,483 | 69,955 | ||||||||||||||
Hotel/motel | 13,139 | -- | 184 | 708 | -- | 34,156 | 48,187 | ||||||||||||||
Industrial | 54,014 | 1,378 | 15,104 | 6,725 | 8,171 | 37,193 | 122,585 | ||||||||||||||
RV park | 824 | -- | 2,489 | -- | 153 | 1,139 | 4,605 | ||||||||||||||
Warehouse | 10,774 | -- | 398 | -- | -- | 6,783 | 17,955 | ||||||||||||||
Other | 27,653 | 517 | -- | -- | 231 | 4,382 | 32,783 | ||||||||||||||
Total | $ | 553,132 | $ | 13,262 | $ | 96,597 | $ | 34,159 | $ | 170,530 | $ | 363,799 | $ | 1,231,479 | |||||||
Total | $ | 1,525,010 | $ | 35,803 | $ | 372,811 | $ | 143,902 | $ | 651,945 | $ | 754,004 | $ | 3,483,475 | |||||||
% of total | 44 | % | 1 | % | 11 | % | 4 | % | 19 | % | 21 | % | 100 | % |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 27 of 30
The following is a distribution of the non-covered term commercial real estate portfolio by type and by year of maturity as of December 31, 2010:
Table 8 – Non-covered commercial real estate loan portfolio by type and by year of maturity
(Dollars in thousands) | |||||||||||||||||||||
2013- | 2015- | 2017- | 2022 | & | |||||||||||||||||
2011 | 2012 | 2014 | 2016 | 2021 | Later | Total | |||||||||||||||
Non-owner occupied: | |||||||||||||||||||||
Commercial building | $ | 22,853 | $ | 22,682 | $ | 79,639 | $ | 82,637 | $ | 169,425 | $ | 13,550 | $ | 390,786 | |||||||
Medical office | 305 | 549 | 33,974 | 14,969 | 54,618 | 8,442 | 112,857 | ||||||||||||||
Professional office | 25,820 | 11,306 | 94,325 | 125,222 | 147,667 | 13,629 | 417,969 | ||||||||||||||
Storage | 8,371 | 13 | 23,901 | 27,156 | 37,205 | 1,111 | 97,757 | ||||||||||||||
Multifamily 5+ | 4,079 | 2,790 | 16,877 | 20,795 | 65,595 | 6,455 | 116,591 | ||||||||||||||
Resort | -- | -- | 809 | 4,140 | 1,162 | -- | 6,111 | ||||||||||||||
Retail | 37,900 | 20,968 | 98,145 | 152,987 | 153,632 | 4,850 | 468,482 | ||||||||||||||
Residential | 15,877 | 8,826 | 13,933 | 9,513 | 19,089 | 7,162 | 74,400 | ||||||||||||||
Farmland & agriculture | 1,237 | -- | 3,095 | 6,275 | 10,583 | 2,776 | 23,966 | ||||||||||||||
Apartments | 4,981 | 2,287 | 7,044 | 14,689 | 84,074 | 1,722 | 114,797 | ||||||||||||||
Assisted living | 6,640 | 13,674 | 3,720 | 66,246 | 48,771 | 2,184 | 141,235 | ||||||||||||||
Hotel/motel | 7,635 | 2,103 | 18,251 | 19,847 | 29,639 | 3,931 | 81,406 | ||||||||||||||
Industrial | 5,168 | 7,365 | 15,734 | 28,918 | 29,563 | 5,488 | 92,236 | ||||||||||||||
RV park | 1,412 | 2,056 | 11,260 | 10,343 | 29,286 | 2,297 | 56,654 | ||||||||||||||
Warehouse | 462 | 635 | 7,561 | 1,452 | 1,930 | 1,075 | 13,115 | ||||||||||||||
Other | 14,050 | 3,249 | 13,487 | 3,982 | 5,394 | 3,472 | 43,634 | ||||||||||||||
Total | $ | 156,790 | $ | 98,503 | $ | 441,755 | $ | 589,171 | $ | 887,633 | $ | 78,144 | $ | 2,251,996 | |||||||
Owner occupied: | |||||||||||||||||||||
Commercial building | $ | 5,374 | $ | 16,186 | $ | 47,261 | $ | 69,550 | $ | 197,367 | $ | 54,074 | $ | 389,812 | |||||||
Medical office | 533 | 1,841 | 9,415 | 7,043 | 106,839 | 23,479 | 149,150 | ||||||||||||||
Professional office | 2,105 | 3,535 | 20,717 | 24,965 | 58,841 | 5,510 | 115,673 | ||||||||||||||
Storage | 1,456 | -- | 2,630 | 7,019 | 17,412 | 1,010 | 29,527 | ||||||||||||||
Multifamily 5+ | -- | -- | 830 | 51 | 3,262 | -- | 4,143 | ||||||||||||||
Resort | -- | -- | 3,954 | 134 | 5,596 | 4,247 | 13,931 | ||||||||||||||
Retail | 7,968 | 2,829 | 31,698 | 36,630 | 72,216 | 8,599 | 159,940 | ||||||||||||||
Residential | 1,547 | 1,507 | 2,350 | 1,708 | 3,826 | 1,543 | 12,481 | ||||||||||||||
Farmland & agriculture | 3,950 | 349 | 12,110 | 12,505 | 26,726 | 2,707 | 58,347 | ||||||||||||||
Apartments | -- | -- | 40 | -- | 2,365 | -- | 2,405 | ||||||||||||||
Assisted living | 11,917 | -- | 12,277 | 28,411 | 14,934 | 2,416 | 69,955 | ||||||||||||||
Hotel/motel | -- | 4,089 | 12,516 | 15,298 | 6,434 | 9,850 | 48,187 | ||||||||||||||
Industrial | 5,011 | 8,405 | 14,443 | 29,394 | 53,784 | 11,548 | 122,585 | ||||||||||||||
RV park | 79 | 40 | 1,731 | 384 | 2,218 | 153 | 4,605 | ||||||||||||||
Warehouse | 320 | 1,189 | 5,192 | 4,588 | 6,580 | 86 | 17,955 | ||||||||||||||
Other | 2,521 | 60 | 964 | 1,524 | 27,631 | 83 | 32,783 | ||||||||||||||
Total | $ | 42,781 | $ | 40,030 | $ | 178,128 | $ | 239,204 | $ | 606,031 | $ | 125,305 | $ | 1,231,479 | |||||||
Total | $ | 199,571 | $ | 138,533 | $ | 619,883 | $ | 828,375 | $ | 1,493,664 | $ | 203,449 | $ | 3,483,475 | |||||||
% of total | 5 | % | 4 | % | 18 | % | 24 | % | 43 | % | 6 | % | 100 | % |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 28 of 30
The following is a distribution of the non-covered term commercial real estate portfolio by type and by year of origination as of December 31, 2010:
Table 9 – Non-covered commercial real estate loan portfolio by type and by year of origination
(Dollars in thousands) | ||||||||||||
Prior to | 2000- | 2005- | 2007- | 2009- | ||||||||
2000 | 2004 | 2006 | 2008 | 2010 | Total | |||||||
Non-owner occupied: | ||||||||||||
Commercial building | $ | 7,460 | $ | 82,050 | $ | 59,593 | $ | 146,719 | $ | 94,964 | $ | 390,786 |
Medical office | 386 | 44,662 | 16,740 | 29,894 | 21,175 | 112,857 | ||||||
Professional office | 7,370 | 148,548 | 114,326 | 81,507 | 66,218 | 417,969 | ||||||
Storage | 1,526 | 45,550 | 20,381 | 25,340 | 4,960 | 97,757 | ||||||
Multifamily 5+ | 3,065 | 25,153 | 18,182 | 44,174 | 26,017 | 116,591 | ||||||
Resort | 714 | 1,292 | -- | 679 | 3,426 | 6,111 | ||||||
Retail | 9,441 | 154,190 | 140,338 | 132,675 | 31,838 | 468,482 | ||||||
Residential | 1,256 | 7,493 | 26,135 | 21,287 | 18,229 | 74,400 | ||||||
Farmland & agriculture | 829 | 1,114 | 6,105 | 5,148 | 10,770 | 23,966 | ||||||
Apartments | 800 | 20,208 | 21,075 | 19,140 | 53,574 | 114,797 | ||||||
Assisted living | 5,888 | 52,101 | 46,712 | 15,553 | 20,981 | 141,235 | ||||||
Hotel/motel | 9,615 | 26,254 | 19,546 | 22,585 | 3,406 | 81,406 | ||||||
Industrial | 3,806 | 40,577 | 33,768 | 10,107 | 3,978 | 92,236 | ||||||
RV park | 2,834 | 16,820 | 13,589 | 10,063 | 13,348 | 56,654 | ||||||
Warehouse | 1,056 | 8,567 | 2,996 | 496 | -- | 13,115 | ||||||
Other | 636 | 11,872 | 10,488 | 19,636 | 1,002 | 43,634 | ||||||
Total | $ | 56,682 | $ | 686,451 | $ | 549,974 | $ | 585,003 | $ | 373,886 | $ | 2,251,996 |
Owner occupied: | ||||||||||||
Commercial building | $ | 9,349 | $ | 70,494 | $ | 77,524 | $ | 127,557 | $ | 104,888 | $ | 389,812 |
Medical office | 2,190 | 22,424 | 9,807 | 41,323 | 73,406 | 149,150 | ||||||
Professional office | 2,857 | 32,148 | 35,510 | 34,148 | 11,010 | 115,673 | ||||||
Storage | 525 | 7,783 | 9,879 | 10,686 | 654 | 29,527 | ||||||
Multifamily 5+ | 168 | 830 | -- | -- | 3,145 | 4,143 | ||||||
Resort | 405 | 10,494 | 134 | -- | 2,898 | 13,931 | ||||||
Retail | 5,393 | 36,691 | 59,884 | 51,309 | 6,663 | 159,940 | ||||||
Residential | 101 | 5,041 | 4,941 | 1,307 | 1,091 | 12,481 | ||||||
Farmland & agriculture | 798 | 14,180 | 12,605 | 14,734 | 16,030 | 58,347 | ||||||
Apartments | 40 | -- | 602 | 914 | 849 | 2,405 | ||||||
Assisted living | 4,930 | 7,505 | 41,448 | 13,636 | 2,436 | 69,955 | ||||||
Hotel/motel | 5,688 | 25,515 | 5,624 | 1,541 | 9,819 | 48,187 | ||||||
Industrial | 2,422 | 42,161 | 30,793 | 15,785 | 31,424 | 122,585 | ||||||
RV park | 835 | 1,557 | 130 | 1,949 | 134 | 4,605 | ||||||
Warehouse | 108 | 7,823 | 2,600 | 2,776 | 4,648 | 17,955 | ||||||
Other | -- | 2,999 | 21,586 | 7,348 | 850 | 32,783 | ||||||
Total | $ | 35,809 | $ | 287,645 | $ | 313,067 | $ | 325,013 | $ | 269,945 | $ | 1,231,479 |
Total | $ | 92,491 | $ | 974,096 | $ | 863,041 | $ | 910,016 | $ | 643,831 | $ | 3,483,475 |
% of total | 3 | % | 28 | % | 25 | % | 26 | % | 18 | % | 100% |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 29 of 30
The following is a distribution of the non-covered commercial construction portfolio by type and by region as of December 31, 2010:
Table 10 – Non-covered commercial construction loan portfolio by type and by region
(Dollars in thousands) | |||||||||||||||||||||
Northwest | Central | Southern | Greater | Northern | |||||||||||||||||
Oregon | Oregon | Oregon | Washington | Sacramento | California | Total | |||||||||||||||
Non-owner occupied: | |||||||||||||||||||||
Commercial building | $ | 897 | $ | -- | $ | 2,297 | $ | 300 | $ | 16,236 | $ | 6,147 | $ | 25,877 | |||||||
Medical office | 12,458 | -- | -- | -- | -- | 1,430 | 13,888 | ||||||||||||||
Professional office | 9,294 | -- | 2,238 | -- | 8,525 | 3,020 | 23,077 | ||||||||||||||
Storage | 8,447 | -- | -- | -- | -- | -- | 8,447 | ||||||||||||||
Multifamily 5+ | -- | -- | -- | 2,837 | 7,868 | -- | 10,705 | ||||||||||||||
Retail | 10,968 | -- | -- | -- | 2,530 | -- | 13,498 | ||||||||||||||
Residential | 27,156 | 310 | 3,822 | 1,784 | 22,990 | 5,996 | 62,058 | ||||||||||||||
Apartments | 13,324 | -- | -- | -- | -- | -- | 13,324 | ||||||||||||||
Assisted living | 9,300 | -- | -- | -- | 3,747 | -- | 13,047 | ||||||||||||||
Hotel/motel | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Industrial | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Other | 124 | -- | -- | -- | -- | 2,980 | 3,104 | ||||||||||||||
Total | $ | 91,968 | $ | 310 | $ | 8,357 | $ | 4,921 | $ | 61,896 | $ | 19,573 | $ | 187,025 | |||||||
Owner occupied: | |||||||||||||||||||||
Commercial building | $ | 12,646 | $ | -- | $ | 166 | $ | -- | $ | 584 | $ | 11,983 | $ | 25,379 | |||||||
Medical office | 14,479 | -- | -- | -- | -- | -- | 14,479 | ||||||||||||||
Professional office | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Storage | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Multifamily 5+ | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Retail | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Residential | 5,346 | -- | -- | -- | -- | 598 | 5,944 | ||||||||||||||
Apartments | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Assisted living | 7,342 | -- | -- | -- | -- | -- | 7,342 | ||||||||||||||
Hotel/motel | -- | -- | -- | -- | -- | 5,447 | 5,447 | ||||||||||||||
Industrial | 2,121 | -- | 77 | -- | -- | -- | 2,198 | ||||||||||||||
Other | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||
Total | $ | 41,934 | $ | -- | $ | 243 | $ | -- | $ | 584 | $ | 18,028 | $ | 60,789 | |||||||
Total | $ | 133,902 | $ | 310 | $ | 8,600 | $ | 4,921 | $ | 62,480 | $ | 37,601 | $ | 247,814 | |||||||
% of total | 54 | % | 0 | % | 4 | % | 2 | % | 25 | % | 15 | % | 100 | % |
Umpqua Holdings Corporation Announces Fourth Quarter and Full Year 2010 Results
January 27, 2011
Page 30 of 30
The following is a distribution of the non-covered commercial loan portfolio by type and by region as of December 31, 2010:
Table 11 – Non-covered commercial loan portfolio by type and by region
(Dollars in thousands) | |||||||||||||||||||||
Northwest | Central | Southern | Greater | Northern | |||||||||||||||||
Oregon | Oregon | Oregon | Washington | Sacramento | California | Total | |||||||||||||||
Commercial line of credit | $ | 101,125 | $ | 1,453 | $ | 22,531 | $ | 22,826 | $ | 154,244 | $ | 70,140 | $ | 372,319 | |||||||
Asset based line of credit | 111,948 | 118 | 8,831 | 13,021 | 11,245 | 61,022 | 206,185 | ||||||||||||||
Term loan | 155,608 | 3,433 | 27,037 | 9,753 | 48,209 | 99,927 | 343,967 | ||||||||||||||
Agriculture | 25,050 | -- | 459 | -- | 332 | 57,491 | 83,332 | ||||||||||||||
Municipal | 11,858 | -- | 18,485 | -- | 37,587 | 4,064 | 71,994 | ||||||||||||||
Government guaranteed | -- | -- | -- | -- | -- | 57,529 | 57,529 | ||||||||||||||
Small business | 42,569 | -- | -- | 4,769 | 41,752 | -- | 89,090 | ||||||||||||||
Total | $ | 448,158 | $ | 5,004 | $ | 77,343 | $ | 50,369 | $ | 293,369 | $ | 350,173 | $ | 1,224,416 | |||||||
% of total | 36 | % | 1 | % | 6 | % | 4 | % | 24 | % | 29 | % | 100 | % |
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