PORTLAND, Ore. — —
Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Umpqua Investments Inc., today announced third quarter 2013 net earnings available to common shareholders of $23.3 million, or $0.21 per diluted common share, compared to net earnings available to common shareholders of $26.1 million, or $0.23 per diluted common share for the second quarter of 2013, and $25.0 million, or $0.22 per diluted common share, for the same period in the prior year.
For the nine months ended September 30, 2013, the Company is reporting net earnings available to common shareholders of $72.5 million, or $0.65 per diluted common share, compared to net earnings available to common shareholders of $73.4 million, or $0.65 per diluted common share for the same period of the prior year.
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 $26.5 million, or $0.24 per diluted common share for the third quarter of 2013, compared to operating earnings of $26.9 million, or $0.24 per diluted common share for the second quarter of 2013, and $25.4 million, or $0.23 per diluted common share, for the same period in the prior year. For the nine months ended September 30, 2013, the Company is reporting operating earnings of $77.8 million, or $0.69 per diluted common share, compared to operating earnings of $74.6 million, or $0.67 per diluted common share for the same period of the prior year.
Significant financial statement items for the third quarter of 2013 include:
• Non-covered loans and leases grew $442 million, or 7%, over the prior quarter;
• Excluding the net amount acquired through the Financial Pacific Holding Corporation ("FinPac") transaction, non-covered loans and leases grew $191 million and non-covered loan commitments increased $223 million;
• Completed the acquisition of FinPac which contributed $6.0 million to operating earnings for the quarter;
• Adjusted net interest margin of 4.16%, representing a 59 basis points increase over the prior quarter. The sequential quarter increase in adjusted net interest margin primarily resulted from FinPac operations, lower average interest bearing cash and organic loan growth during the quarter;
• Mortgage banking revenue of $15.1 million on closed loan volume of $463 million;
• Non-covered, non-performing assets continue to decline, down to 0.54% of total assets. FinPac contributed $2.6 million of non-performing loans as of September 30, 2013, adding 2 basis points to our non-covered, non-performing assets as a percentage of total assets ratio;
• Provision for non-covered loan and lease losses of $3.0 million and non-covered net charge-offs of $4.2 million;
• Cost of interest bearing deposits of 0.29% and cost of total interest bearing liabilities of 0.50%;
• Tangible common equity ratio of 8.78%;
• Total risk-based capital of 14.82%, and Tier 1 common to risk weighted asset ratio of 11.08%;
• Declared a dividend of $0.15 per common share in the third quarter, representing a 71% payout ratio for the quarter, and;
• Announced the merger agreement with Sterling Financial Corporation
"This past quarter was another strong period for Umpqua, highlighted by strong earnings in spite of reduced home lending volume, continued loan growth, the completion of our Financial Pacific acquisition that already is accretive to earnings, as well as the opening of our San Francisco flagship store," said Ray Davis, president and CEO of Umpqua Holdings Corporation. "We were also pleased to announce the pending merger of Sterling Financial Corporation into Umpqua, which once approved will result in Umpqua becoming the largest community bank in the Western United States. This transaction will add significant forward momentum to the company and position the company for future growth."
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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.