UMPQUA REPORTS SECOND QUARTER 2014 RESULTS

PORTLAND, Ore. - July 23, 2014 - Umpqua Holdings Corporation (NASDAQ: UMPQ) (the "Company") reported net earnings available to common shareholders of $17.1 million for the second quarter of 2014, as compared to $18.7 million for the first quarter 2014, and $26.1 million for the second quarter of 2013.  Earnings per diluted common share was $0.09 for the second quarter of 2014, as compared to $0.17 for the first quarter of 2014, and $0.23 for the second quarter of 2013.

 

Operating earnings1, which represent earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, and merger related expenses, net of tax, were $53.9 million for the second quarter of 2014, as compared to $24.0 million for the first quarter of 2014, and $26.9 million for the second quarter of 2013.  Operating earnings per diluted common share was $0.27 for the second quarter of 2014, as compared to $0.21 for the first quarter of 2014, and $0.24 for the second quarter of 2013. 

 

"Our results this quarter reflect our ability to continue to grow Umpqua in a profitable manner," said Ray Davis, president and CEO of Umpqua Holdings Corporation.  "The Company's second quarter 2014 performance includes strong organic loan and deposit growth, a higher net interest margin, increased mortgage banking revenues and strong credit quality, while at the same time completing the Sterling acquisition.  We remain on track with the integration, and believe we are well-positioned to leverage the franchise value of the combined company to drive future growth."

 

Second Quarter 2014 Financial Highlights:

•         Delivered improved operating results:

◦         Adjusted net interest margin1 increased to 4.85%, from 4.12% in the prior quarter;

◦         Efficiency ratio (operating basis)1 improved to 60.33%, from 68.34% in the prior quarter;

◦         Return on average tangible common equity (operating basis)1 improved to 12.76%;

  

•         Continued to generate organic loan growth and gather core deposits:

◦         Non-covered loans and leases grew organically (exclusive of loans acquired or divested) by $338.0 million, partially offset by $44.4 million in loan sales, for net growth of $293.6 million, or 8% annualized;

◦         Deposits grew organically (exclusive of deposits acquired or divested) by $188.5 million, or 5% annualized;

 

•         Credit quality remained strong:

◦         Non-covered, non-performing assets to total assets decreased to 0.36%, from 0.53% for the prior quarter;

 

•         Disciplined capital management:

◦         Tangible common equity ratio[1] of 9.34%, up from 8.67% in the prior quarter;

◦         Tangible book value per share1 of $8.69, up 2% from $8.54 in the prior quarter;

◦         Estimated total risk-based capital of 14.7% and Tier 1 common to risk weighted asset ratio of 11.0%;

◦         Declared a dividend of $0.15 per common share;

   For the six months ended June 30, 2014, the Company reported net earnings available to common shareholders of $35.8 million, or $0.23 per diluted common share, as compared to $49.2 million, or $0.44 per diluted common share, for the six months ended June 30, 2013.  For the six months ended June 30, 2014, operating earnings1 were $77.9 million, or $0.50 per diluted common share, as compared to $51.3 million, or $0.46 per diluted common share, for the six months ended June 30, 2013.

 

For the complete press release click here

For the consolidated financial statements please click here

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.


[1] "Non-GAAP" financial measure.  More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.