PORTLAND, Ore. — —
Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Umpqua Investments Inc., today announced full year 2013 net earnings available to common shareholders of $97.6 million, or $0.87 per diluted common share, compared to net earnings available to common shareholders of $101.2 million, or $0.90 per diluted common share, for 2012. For the fourth quarter 2013, the Company is reporting net earnings available to common shareholders of $25.1 million, or $0.22 per diluted common share, compared to net earnings available to common shareholders of $23.3 million, or $0.21 per diluted common share, for the third quarter of 2013, and $27.8 million, or $0.25 per diluted common share, for the same period in the prior year.
Full year 2013 operating earnings of $0.94 per diluted share
Fourth quarter 2013 operating earnings of $0.25 per diluted share
Organic non-covered loans and leases grew $125 million, or 2%, over prior quarter, 6% for year
Fourth quarter 2013 net interest margin of 4.29% and adjusted net interest margin of 4.12%
Non-covered, non-performing assets decreased 35% year over year, to 0.49% of total assets
Fourth quarter 2013 mortgage banking revenue of $16.0 million
Operating earnings, 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, were $105.7 million, or $0.94 per diluted common share, for 2013, compared to operating earnings of $103.9 million, or $0.93 per diluted common share, for 2012. For the fourth quarter of 2013, the Company is reporting operating earnings of $27.9 million, or $0.25 per diluted common share, compared to operating earnings of $26.5 million, or $0.24 per diluted common share, for the third quarter of 2013, and $29.3 million, or $0.26 per diluted common share, for the same period in the prior year.
Significant financial statement items for the fourth quarter of 2013 include:
• Non-covered loans and leases grew $125 million and non-covered loan commitments increased $164 million during the quarter;
• Financial Pacific Leasing ("FinPac") contributed $5.2 million to operating earnings for the quarter;
• Net interest margin of 4.29%, representing a 7 basis points increase over the prior quarter;
• Adjusted net interest margin of 4.12%, a decrease of 4 basis points from the prior quarter, based in part to higher average interest bearing cash balances;
• Mortgage banking revenue of $16.0 million on closed loan volume of $360 million;
• Non-covered, non-performing assets declined 5 basis points down to 0.49% of total assets;
• Provision for non-covered loan and lease losses of $3.8 million and non-covered net charge-offs of $3.2 million, the difference resulting from growth in non-covered loans during the period;
• Cost of interest bearing deposits of 0.25% and cost of total interest bearing liabilities of 0.46%;
• Tangible common equity ratio of 8.75%;
• Total risk-based capital of 14.61%, and Tier 1 common to risk weighted asset ratio of 10.95%; and,
• Declared a dividend of $0.15 per common share in the fourth quarter, representing a 68% payout ratio for the quarter.
Highlights for the full year of 2013 include:
• Organic non-covered loans and leases growth of $422 million, or 6%, and total organic non-covered loan commitments increased $528 million;
• Commercial Banking loan production of $1.46 billion;
• Provision for non-covered loan losses declined 23% year over year to $16.8 million;
• Net non-covered charge-offs declined 42% year over year to $16.9 million;
• Non-covered, non-performing assets declined 35%, to 0.49% of total assets;
• Mortgage banking revenue of $78.9 million on closed loan volume of $1.9 billion;
• Adjusted net interest margin of 3.89%, representing a 3 basis point increase over the prior year; and,
• Completed the acquisition of Financial Pacific Leasing and announced a merger agreement with Sterling Financial Corporation ("Sterling").
"2013 was a strong year for Umpqua, as demonstrated by the company's total shareholder return, which exceeded 65%. In addition to generating 10% loan and lease growth, the company completed the strategic purchase of Financial Pacific Leasing to diversify revenues and offset the reduction in home lending volumes, and in September, announced a transformational merger with Sterling Financial Corporation," said Ray Davis, president and CEO of Umpqua Holdings Corporation. "Together, these actions have created significant momentum for the company, accelerating Umpqua's ability to continue building the largest community bank in the western United States."
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About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has locations between San Francisco, California, and Seattle, Washington, along the Oregon and Northern California Coast, Central Oregon and Northern Nevada, and also owns Financial Pacific Leasing, a national business-essential commercial equipment leasing company. 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 Private Bank serves high net worth individuals and non-profits, providing trust and investment services. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquaholdingscorp.com.