Umpqua — Q4 2022 Earnings Presentation
33 slides from Umpqua's earnings presentation, Jan 24, 2023
Slide 1: Umpqua Holdings Corporation 4th Quarter 2022 Earnings Presentation
Umpqua Holdings Corporation 4th Quarter 2022 Earnings Presentation January 23, 2023
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 (cont.): Non-GAAP Financial Measures
3 Disclaimer (cont.) 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: Columbia and Umpqua Expect to Combine and Complete Core System Conversion in 1Q 2023
5 Columbia and Umpqua Expect to Combine and Complete the Scheduled Core System Conversion in 1Q 2023 4Q 2021 Combination Announced Core Expense Run Rate Communicated Integration Complete Conversations Begin Due Diligence 1Q 2023 Scheduled Core System Conversion October 2021 – February 2023 Completed
Slide 6: Current Priorities: Integration and Growth
6 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 our externally focused associates’ ability to serve our customers and our communities and to gene
Slide 7: Financial Highlights & Summary Financial Statements Q4 2022 & FY 2022
Financial Highlights & Summary Financial Statements Q4 2022 & FY 2022
Slide 8: Q4 2022 Highlights (Compared to Q3 2022)
8 Total gross loans and leases increased $648 million or 2.5% as the majority of loan categories and business lines contributed to the quarter's net expansion. Q4 2022 Highlights (Compared to Q3 2022) Deposit balances increased by $249 million or 0.9%. The rising interest rate environment and the im
Slide 9: Performance Ratios
9 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 14 as Net Interest Margin excluding acquired loan accretion and PPP.
Slide 10: Summary Income Statement
10 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 11: Selected Period-End Balance Sheet
11 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) Q4 2022 Q3 202
Slide 12: Income Statement Highlights & Segment Financials Q4 2022
Income Statement Highlights & Segment Financials Q4 2022
Slide 13: Net Interest Income
13 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net Interest Income $233.4 $228.8 $248.2 $287.6 $305.5 Accretion Related to Acquired Loans (1.6) (1.4) (1.1) (0.8) (0.4) PPP Accrued Interest (1.4) (0.7) (0.4) (0.2) (0.1) PPP Processing Fees (9.6) (6.1) (2.4) (2.2) (0.5) Net Interest Income excluding acqui
Slide 14: NIM – MBS & CMO Premium Amortization & Recapture Details
14 NIM – MBS & CMO Premium Amortization & Recapture Details FY 2021 FY 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 MBS & CMO Premium in $ millions (Amortization)/Recapture ($9.7mm) ($1.1mm) ($2.3mm) $0.3mm ($1.3mm) $0.0mm ($0.1mm) Net NIM Impact in basis points (Dilutive)/Accretive (0.03) % 0.00 %
Slide 15: Interest Rate Sensitivity: Loans
15 Loan Repricing Detail1, 2 (in millions) Q3 2022 Q4 2022 Q3 2022 Q4 2022 Fixed $ 8,702 $ 8,981 34 % 34 % Prime 1,809 1,801 7 % 7 % 1 Month 5,885 6,143 23 % 24 % Floating 7,694 7,944 30 % 31 % Prime 305 302 1 % 1 % 6 month 5,415 5,593 21 % 21 % 1 Year 1,256 1,226 5 % 5 % 3 Year 168 160 1 % 1 % 5 Ye
Slide 16: Interest Rate Sensitivity: Balance Sheet
16 Interest Rate Sensitivity: Balance Sheet December 31, 2022: Interest Rate Simulation Impact on Net Interest Income1, 2 Year 1 Year 2 Year 1 Year 2 Ramp Shock Up 200 basis points 1.1% 4.2% 2.7% 5.6% Up 100 basis points 0.6% 2.2% 1.4% 2.9% Down 100 basis points (2.4)% (6.0)% (4.9)% (6.9)% Down 200
Slide 17: Non-Interest Income
17 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 year ended For the quarter ended FY 2022 FY 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Service ch
Slide 18: Non-Interest Expense and Efficiency Ratio
18 $199.7 $182.4 $179.6 $178.0 $195.0 63.1% 59.0% 59.1% 56.1% 57.2% Non-interest expense Efficiency ratio Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 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 19: Segments - Core Banking
19 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 20: Segments - Mortgage Banking
20 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 21: Balance Sheet Highlights Q4 2022
Balance Sheet Highlights Q4 2022
Slide 22: Q4 2022 Loan Roll Forward
22 Q4 2022 Loan Roll Forward $25,508 $1,187 $81 ($453) ($154) ($14) $1 $26,156 Beginning Balance (9/30/2022) New Originations Net Advances/ Payments Payoffs Maturities PPP Other Ending Balance (12/31/2022) $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $ in millions
Slide 23: Loan and Lease Characteristics: Overall Portfolio and Q4 2022 Production
23 Loan and Lease Characteristics: Overall Portfolio and Q4 2022 Production Footnotes: Portfolio statistics and delinquencies as of December 31, 2022. Annualized net charge-off rate for Q4 2022. LTV (loan-to-value), FICO, and DSC (debt service coverage) are based on weighted average for portfolio. L
Slide 24: CRE and C&I Portfolio Composition
24 CRE and C&I Portfolio Composition Agriculture, 4.4% Contractors, 8.0% Finance/Insurance, 6.5% Manufacturing, 8.5% Professional, 5.9% Public Admin, 7.9% Rental & Leasing, 5.5% Retail, 3.1% Support Services, 4.9% Transportation/ Warehousing, 14.9% Wholesale, 9.0% Gaming, 6.9% Healthcare, 3.3% Other
Slide 25: Current Expected Credit Loss (CECL)
25 Current Expected Credit Loss (“CECL”) Footnotes: 1. Total includes $11.9 mm for Reserve for Unfunded Commitments 2. Total includes $14.2 mm for Reserve for Unfunded Commitments Loan Segment 9/30/2022 Q4 2022 Net Charge-offs Reserve build 12/31/2022 % of loans and leases outstanding Commercial $51
Slide 26: Credit Quality
26 Credit Quality Pr ov is io n or (R ec ap tu re ) Ex pe ns e ($ in m ill io ns ) N on perform ing assets to total assets Provision or (Recapture) Expense & Non-Performing Assets to Total Assets $(0.7) $4.8 $18.7 $27.6 $32.9 0.17% 0.14% 0.15% 0.16% 0.18% Provision or (recapture) expense Non Perform
Slide 27: Capital Management
27 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 28: Appendix: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 29: Non-GAAP Reconciliation: Tangible Capital
29 Non-GAAP Reconciliation: Tangible Capital (In thousands, except per share data) Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Total shareholders' equity a $2,479,826 $2,417,514 $2,518,276 $2,607,598 $2,749,270 Less: Other intangible assets, net 4,745 5,764 6,789 7,815 8,840 Tan
Slide 30: Non-GAAP Reconciliation: Umpqua - Consolidated
30 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 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Net interest income (1) c $ 305,762 $ 287,933 $ 248,522 $ 229,117 $
Slide 31: Non-GAAP Reconciliation: Umpqua - Consolidated (cont.)
31 Non-GAAP Reconciliation: Umpqua - Consolidated (cont.) (In Thousands, except per share data) For the Quarter Ended Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Select Per-Share & Performance Metrics Earnings-per-share - basic j/r $ 0.38 $ 0.39 $ 0.36 $ 0.42 $ 0.41 Earnings-per-share - diluted j/s $ 0.
Slide 32: Non-GAAP Reconciliation: Core Banking Segment
32 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 33: Non-GAAP Reconciliation: Mortgage Banking Segment
33 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 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Net interest income c $ 449 $ 1,072 $ 1,161 $ 1,