Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Umpqua Investments Inc., today announced second quarter 2012 net earnings available to common shareholders of $23.1 million, or $0.21 per diluted common share, compared to net earnings available to common shareholders of $25.3 million, or $0.23 per diluted common share for the first quarter of 2012, and $17.7 million, or $0.15 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 $23.5 million, or $0.21 per diluted common share for the second quarter of 2012, compared to operating earnings of $25.7 million, or $0.23 per diluted common share for the first quarter of 2012, and $18.1 million, or $0.16 per diluted common share, for the same period in the prior year.
Significant financial statement items for the second quarter of 2012 include:
- Non-covered loans and leases grew $163 million and total non-covered loan commitments increased $222 million;
- Record mortgage banking revenue of $15.6 million on closed loan volume of $489 million;
- Adjusted net interest margin (1) decreased 4 basis points to 3.96% in the second quarter primarily due to lower yields on non-covered loans and investment securities;
- Non-covered, non-performing assets continue to decline, down to 1.01% of total assets;
- Provision for non-covered loan and lease losses of $6.6 million and non-covered net charge-offs of $9.7 million, with the difference between the two primarily resulting from the decline in non-covered classified loans during the period;
- The allowance for non-covered credit losses ended the quarter at 1.39% of total non-covered loans and leases, reflecting the improved credit quality of the loan portfolio and unfunded loan commitments;
- The cost of interest bearing deposits declined 2 basis points on a sequential quarter basis to 0.47%;
- Debt Capital Markets revenue of $2.3 million;
- Tangible common equity ratio of 9.42%; and
- Total risk-based capital of 16.85%, and Tier 1 common to risk weighted asset ratio of 12.73%.
(1) Operating earnings and adjusted net interest margin are considered “non-GAAP” financial measures. More information regarding these measurements and a reconciliation to the comparable GAAP measurements are provided under the heading Non-GAAP Financial Measures below. In previous earnings releases and periodic reports, we referred to adjusted net interest margin as core net interest margin.