Umpqua — Q3 2022 Earnings Presentation
35 slides from Umpqua's earnings presentation, Oct 19, 2022
Slide 1: Umpqua Holdings Corporation 3rd Quarter 2022 Earnings Presentation
Umpqua Holdings Corporation 3rd Quarter 2022 Earnings Presentation October 19, 2022
Slide 2: Disclaimer: Forward-Looking Statements
2 Disclaimer FORWARD-LOOKING STATEMENTS This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction between Umpqua Holdings Corporation (“Umpqua”) and Col
Slide 3: Disclaimer (con't): Non-GAAP Financial Measures
3 Disclaimer (con’t) NON-GAAP FINANCIAL MEASURES In addition to results in accordance with GAAP, this presentation contains certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the Appendix. We believe presenting certain non-GAAP financial measures provid
Slide 4: Strategic Updates
Strategic Updates Eq umpaua BANK
Slide 5: Creating a Leading West Coast Franchise
5 Synergies anticipated to drive growth in loans, deposits, and fee-based products and services* 2596936-002 Creating a Leading West Coast Franchise Source: S&P Global Market Intelligence; FactSet; Company filings. *Revenue synergies are anticipated but not modeled in EPS accretion guidance. Note: M
Slide 6: Many Integration Milestones Are Independent of Legal Day
6 Many Integration Milestones Are Independent of Legal Day 1 ◦ Although our closing date is not yet set, we continue to plan for and complete necessary milestones that lead to our scheduled core system conversion date, and many of these projects run independently of legal day 1. Integration planning
Slide 7: Current Priorities: Integration and Growth
7 Current Priorities: Integration and Growth ◦ The top priorities at Columbia and Umpqua are to prepare for and execute the seamless integration of our two banks following the closing without disrupting the growth momentum that began in 2H 2020 and that we expect to continue into 2023. ◦ The establi
Slide 8: Revenue: Scale Expected to Enhance Opportunities
8 Revenue: Scale Expected to Enhance Opportunities Lend with a bigger balance sheet Magnifies the opportunity to grow the loan book as it reduces the need to participate out larger deals, favorably impacting new business and enabling the expansion of existing client relationships. Increases customer
Slide 9: Financial Highlights & Summary Financial Statements Q3 2022
Financial Highlights & Summary Financial Statements Q3 2022
Slide 10: Q3 2022 Highlights (Compared to Q2 2022)
10 Total gross loans and leases increased $1.1 billion or 4.4%, with activity diversified across business lines, portfolio classes, and geographies. Q3 2022 Highlights (Compared to Q2 2022) Deposit balances increased by $685 million or 2.6%. All categories increased during the quarter, as interest-b
Slide 11: Performance Ratios
11 Performance Ratios Footnotes: (1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. (2) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided on slide 16. (3) Non-GAAP financial measure. A reconciliation to the comparab
Slide 12: Summary Income Statement
12 Summary Income Statement Footnotes: Tables may not foot due to rounding. (1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. (2) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentat
Slide 13: Selected Period-End Balance Sheet
13 Selected Period-End Balance Sheet Footnotes: Tables may not foot due to rounding. AOCI = Accumulated other comprehensive income. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation. (in millions) Q3 2022 Q2 202
Slide 14: Income Statement Highlights & Segment Financials Q3 2022
Income Statement Highlights & Segment Financials Q3 2022
Slide 15: Net Interest Income
15 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net Interest Income $235.1 $233.4 $228.8 $248.2 $287.6 Accretion Related to Acquired Loans (2.0) (1.6) (1.4) (1.1) (0.8) PPP Accrued Interest (2.7) (1.4) (0.7) (0.4) (0.2) PPP Processing Fees (15.6) (9.6) (6.1) (2.4) (2.2) Net Interest Income excluding acqu
Slide 16: NIM – MBS & CMO Premium Amortization & Recapture Details
16 NIM – MBS & CMO Premium Amortization & Recapture Details Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 MBS & CMO Premium in $ millions (Amortization)/Recapture ($1.6mm) ($2.3mm) $0.3mm ($1.3mm) $0.0mm Net NIM Impact in basis points (Dilutive)/Accretive (0.02) % (0.03) % 0.00 % (0.02) % 0.00 % Net Inter
Slide 17: Loan Repricing Detail
17 Loan Repricing Detail1,2 (in millions) Q2 2022 Q3 2022 Q2 2022 Q3 2022 Fixed $ 8,619 $ 8,702 35 % 34 % Prime 1,835 1,809 8 % 7 % 1 Month 5,524 5,885 23 % 23 % Floating 7,359 7,694 31 % 30 % Prime 314 305 1 % 1 % 6 month 4,930 5,415 20 % 21 % 1 Year 1,043 1,256 4 % 5 % 3 Year 205 168 1 % 1 % 5 Yea
Slide 18: Interest Rate Sensitivity: Balance Sheet Is Asset Sensitive
18 Interest Rate Sensitivity: Balance Sheet Is Asset Sensitive Interest Rate Simulation Impact on Net Interest Income1 Year 1 Year 2 Year 1 Year 2 Ramp Shock Up 400 basis points 4.0% 13.6% 9.0% 17.3% Up 300 basis points 3.0% 10.3% 6.8% 13.0% Up 200 basis points 2.0% 6.8% 4.5% 8.6% Up 100 basis point
Slide 19: Non-Interest Income
19 Non-Interest Income Footnotes: Tables may not foot due to rounding. 1. Commercial product revenue includes Swaps, M&A Advisory, Syndication, and International Banking revenue. (in millions) For the quarter ended Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Service charges on deposits $12.6 $12.0 $11.6
Slide 20: Non-Interest Expense and Efficiency Ratio
20 $183.8 $199.7 $182.4 $179.6 $178.0 59.4% 63.1% 59.0% 59.1% 56.1% Non-interest expense Efficiency ratio Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $155.0 $160.0 $165.0 $170.0 $175.0 $180.0 $185.0 $190.0 $195.0 $200.0 $205.0 $210.0 $215.0 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% Non-Interest
Slide 21: Segments - Core Banking
21 Segments - Core Banking Footnotes: 1. Represents the internal charge of centrally provided support services and other corporate overhead to the mortgage banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portf
Slide 22: Segments - Mortgage Banking
22 Segments - Mortgage Banking Footnotes: 1. Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and p
Slide 23: Balance Sheet Highlights Q3 2022
Balance Sheet Highlights Q3 2022
Slide 24: Q3 2022 Loan Roll Forward
24 Q3 2022 Loan Roll Forward $24,433 $1,745 $177 ($613) ($142) ($64) ($28) $25,508 Beginning Balance (6/30/2022) New Originations Net Advances/ Payments Payoffs Maturities PPP Other Ending Balance (9/30/2022) $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $ in millions
Slide 25: Loan and Lease Characteristics: Overall Portfolio and Q3 2022 Production
25 Loan and Lease Characteristics: Overall Portfolio and Q3 2022 Production Footnotes: Portfolio statistics and delinquencies as of September 30, 2022. Annualized net charge-off rate for Q3 2022. LTV (loan-to-value), FICO, and DSC (debt service coverage) are based on weighted average for portfolio.
Slide 26: CRE and C&I Portfolio Composition
26 CRE and C&I Portfolio Composition Agriculture, 4.7% Contractors, 8.2% Finance/Insurance, 6.2% Manufacturing, 8.8% Professional, 5.8% Public Admin, 8.4% Rental & Leasing, 5.3% Retail, 3.3% Support Services, 5.5% Transportation/ Warehousing, 14.5% Wholesale, 8.4% Gaming, 6.7% Other, 14.2% Office, 1
Slide 27: Current Expected Credit Loss (CECL)
27 Current Expected Credit Loss (“CECL”) Footnotes: 1. Total includes $12.8 mm for Reserve for Unfunded Commitments 2. Total includes $11.9 mm for Reserve for Unfunded Commitments Loan Segment 6/30/2022 Q3 2022 Net Charge-offs Reserve build 9/30/2022 % of loans and leases outstanding Commercial $41,
Slide 28: Credit Quality
28 Credit Quality Pr ov is io n or (R ec ap tu re ) Ex pe ns e ($ in m ill io ns ) N on perform ing assets to total assets Provision or (Recapture) Expense & Non-Performing Assets to Total Assets $(18.9) $(0.7) $4.8 $18.7 $27.6 0.17% 0.17% 0.14% 0.15% 0.16% Provision or (recapture) expense Non Perfo
Slide 29: Capital Management
29 Capital Management Footnotes: 1. Regulatory capital amounts and ratios are estimates pending completion and filing of the Company’s regulatory reports. 2. Greater of Regulatory Well Capitalized Threshold or Capital Adequacy Threshold + Capital Conservation Buffer (2.5%). 3.“Excess” Capital define
Slide 30: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 31: Non-GAAP Reconciliation: Tangible Capital
31 Non-GAAP Reconciliation: Tangible Capital (In thousands, except per share data) Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Total shareholders' equity a $2,417,514 $2,518,276 $2,607,598 $2,749,270 $2,722,379 Less: Other intangible assets, net 5,764 6,789 7,815 8,840 9,970 Tan
Slide 32: Non-GAAP Reconciliation: Umpqua - Consolidated
32 Non-GAAP Reconciliation: Umpqua - Consolidated Footnotes: (1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. (In Thousands) For the Quarter Ended Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Net interest income (1) c $ 287,933 $ 248,522 $ 229,117 $ 233,754 $
Slide 33: Non-GAAP Reconciliation: Umpqua - Consolidated (con't)
33 Non-GAAP Reconciliation: Umpqua - Consolidated (con’t) (In Thousands, except per share data) For the Quarter Ended Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Select Per-Share & Performance Metrics Earnings-per-share - basic j/r $ 0.39 $ 0.36 $ 0.42 $ 0.41 $ 0.49 Earnings-per-share - diluted j/s $ 0.
Slide 34: Non-GAAP Reconciliation: Core Banking Segment
34 Non-GAAP Reconciliation: Core Banking Segment Footnotes: (1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. (2) Includes adjustments related to allocated expenses between the Core Banking and Mortgage Banking segments. (In Thousands) For the Quarter Ende
Slide 35: Non-GAAP Reconciliation: Mortgage Banking Segment
35 Non-GAAP Reconciliation: Mortgage Banking Segment Footnotes: (1) Includes adjustments related to allocated expenses between the Core Banking and Mortgage Banking segments. (In Thousands) For the Quarter Ended Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Net interest income c $ 1,072 $ 1,161 $ 1,676 $