Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Umpqua Investments Inc., today announced first quarter 2012 net earnings available to common shareholders of $25.3 million, or $0.23 per diluted common share, compared to net earnings available to common shareholders of $21.3 million, or $0.19 per diluted common share for the fourth quarter of 2011, and $13.4 million, or $0.12 per diluted common share, for the same period in the prior year.
Operating earnings (1) , 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 $25.7 million, or $0.23 per diluted common share for the first quarter of 2012, compared to operating earnings of $21.6 million, or $0.19 per diluted common share for the fourth quarter of 2011, and $13.8 million, or $0.12 per diluted common share, for the same period in the prior year.
Significant financial statement items for the first quarter of 2012 include:
- Non-covered loans and leases grew $53 million and total non-covered loan commitments increased $60 million;
- Record mortgage banking revenue of $13.1 million on closed loan volume of $403 million;
- Core net interest margin (1) increased 13 basis points to 4.00% in the first quarter primarily due to lower average interest bearing cash balances, increased average non-covered loan balances and lower cost of interest bearing deposit balances;
- Non-covered, non-performing assets continues to decline, down to 1.05% of total assets;
- Non-covered loans past due 30-89 days declined 41%;
- Non-covered classified assets declined 7%;
- Provision for non-covered loan losses of $3.2 million and non-covered net charge-offs of $9.5 million, with the difference between the two resulting from the charge-off of specific reserves established in the prior quarter and continued improvement in the loan portfolio;
- The allowance for non-covered credit losses ended the quarter at 1.48% of total non-covered loans and leases;
- The cost of interest bearing deposits for the first quarter of 2012 was 0.49%, representing a decrease of 9 basis points on a sequential quarter basis;
- Debt Capital Markets revenue of $3.1 million;
- Tangible common equity ratio of 9.38%; and
- Total risk-based capital of 17.04%, and tier 1 common to risk weighted asset ratio of 12.95%.
“This was another strong quarter for Umpqua Holdings led by record revenues from our Home Lending and our Debt Capital Markets divisions,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “Credit quality is performing as expected as our non-performing assets continue to decline while our total loans outstanding continue to grow. We believe that Umpqua has never been better positioned to benefit from both of our growth strategies - organic expansion and potential acquisitions.”