Umpqua (UMPQ) 21 Apr 222022 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the Umpqua Holdings Corporation, First Quarter 2022, Earnings Call. All lines have been placed on mute to prevent background noise. [Operator Instructions]. At this time, I will like to introduce Jacque Bohlen, Investor Relations Director for Umpqua, to begin to conference call. you. Thank ahead go Please

release the refer we Good Ronald discussing prepared our us good we'll quarter your issued remarks, today me be results. and an at our President our afternoon, also morning. Cort call. presentation Lee. Holdings earnings our found first Namdar, Credit of a you Officer. Torran After section. Frank our Corporation, website XXXX everyone. Chief can this umpquabank.com for With We've Nixon, our O'Haver, are questions. morning joining take on these XXXX Umpqua this and to quarter slide Yesterday morning the materials in you, remarks CEO afternoon, Umpqua Relations on Both Bank, and of Thank prepared earnings President Farnsworth, which Thank Chief during our we'll Officer, first Investor Financial

forward-looking risks by are are we call, which subject statements today's Harbor Safe the to the to Securities intended of Provisions will law. During Federal and uncertainties, be make and covered

our as For disclosures factors our may results that earnings cause X refer materially as X expectations, differ please presentation, well to of from to within of a contained Slide actual SEC list filings. and the

over earnings non-GAAP the our Cort. presentation to results. We appendix. review We will financial encourage to measures will in discussion I also turn you reconciliation non-GAAP the reference alongside of call the provided GAAP GAAP now to

financials, then then will and you, to Thank discuss Right. I'll discuss questions. brief take our provide Jacque. Frank your we'll pass of a Ron to recap performance credit

$X.XX growth impacted the reported reported This an represents overview to are origination $XXX actions and in available loan share last a the last earnings is quarter merger mortgage but and heels first of growth right, balances operating typically what first of rate-driven the first Lower and excludes XX%. the I'll EPS quarter compared our mortgage of X.X%, provision of in for commendable which $X.XX quarter, reported year. of the is of $X.XX record during banking taking EPS first quarter XXXX review, of remarks. the million. per $X.XX annual that interest we generations. on last notable volume compares On results. basis bank my $XX rate quarter, the expansion For and we quarterly later year. of particularly of a quarter, the million the $X.XX loan level growth segment slower quarter compared last grew the quarter provide number $X.XX a of will Non-PPP of credit last to losses Ron an its to of for in in shareholders to at This own representing and expenses rate items in it's quarter's return

quarter's organic is offset. generation This significantly

This significantly portfolio residential real enabling or balances, PPP Net X.X% expansion quarter. centered commercial quarter's organic offset X% mortgage total loan estate during expansion continued first annualized in the portfolios. and was the in declines of

quarter. fourth the quarter's leader contracted to we'll reflects to by We a reflected recently continue execution by bankers bank. and a continue growth region, the both start successful. our Ongoing added the existing market since and quarter following As throughout teams the outstanding relationships X.X% the pipelines in talent remains fourth in West. following in Commercial The who favorable to hire volume. lower new a and commercial market the loans 's X% that conditions acquisition have growth bring new Denver-Colorado rebounded markets to middle year

a our XXXX, a brand net to banking we throughout PPP net year. headwind yet growth expect and seen additional longer portfolio than less excellent now and line any which are have movement in favorable which for The provide balances, to of provided tailwind. will the drive expansion utilization, teams’ an not are growth, Remaining no to-date, first our quarter and start X% portfolio, we momentum to expectations execution the

a to of on Moving handful initiatives.

the an to launch The provide technology introduce Commercial Visa collaboration an two Visa solutions the practice pay collaboration payment businesses technology payments provide to new through and with visibility launched included healthcare in solutions, optimize and commercial quarter practice while Bank middle Solution and capabilities security leverages payment This X. needs. Pay to specific The -- owners to week, card a Visa streamline during commercial to customers. their announced Commercial -- Solution our virtually our preferences, first helps X. business's digitize digital rewards solution money advancements Umpqua streamline businesses transaction movement Our market Preferred to healthcare leading company, and a with app-based improve efficiency real-time industry enable we Health, for Rectangle to meeting

to strategy digital Initial long-term actively our and excited is our human Our remain to initiatives Go-To is announce complementary. customers Umpqua of enhanced an engage in channels that to critical version I'm highly and through digital pilot. feedback personally with

efficiencies quarter to speed-to-market We roll-out the internally bank through the also continue and overall in the improving creating while in CNO first customer experience.

our to this journey, annual we ESG our published week, fourth which evolution our this is area. of report important relates it in continued evidence As

to regulatory increased and We expectations, disclosure aware them. we positioned are meet of the are

program a and continuing it mature. have to is We

quarter. good segment, shape the detail by demand relate later. looking be to future. actions We're in to which banking proposed mortgage of items the on elements mortgage we related to through foreseeable also anticipate increase in we're rates and deliver we Ron our will April, Other rate our the count which over -- many at the reduction MSR, the to and adjusted adversely In was in already, disclosures. the have head that able during SEC sharp expense capacity actionable run impacted place meet to a We

and mix ways ensure to to the optimal originations investors. and to salable mix evaluate to continue our order have we will portfolio for the in We the business balance support of bank

by as we did shares shareholder our a System, shareholders any January consistent historical repurchase paid dividend approval we we of payments share, communicated, February, XX. per given with our In capital. Banking Columbia previously $X.XX which not pending combination Regarding and received with

mid XXXX We customers. closing enable management includes generating from continue and Colombia, senior bankers focus and serving project which executive to business in the to leadership on office, integration Umpqua's have both timeframe Umpqua a undisturbed

While continued the the loan growth IMO pipelines the deposit design generated the completion cost of net on facilitated Umpqua's post-closing progress realization and organizational during selections bankers replenished and systems and for expansion. made plans and savings quarter,

operating drive told past forward. us us business enabled for For quarters, our growth the two it enthusiastic separation value banking that top-tier contribute planning through will and from to remain with our markets successfully beyond. the growth. net highly activities has that The to and teams that, accountable you I expansion integration take our of away. objectives XXXX our And And Ron, hold our deliver I've to shareholder

follow to call, All on want be right, from thank to page for along, you, I'll referring the who our those numbers earnings presentation. certain Cort. And

First did more included just reiterate, I'll And an up, past We internal presentation in excellent our detail. also we've in the the earnings expanded given parts reconciliations non-GAAP to disclosures financial include both on the operating now you of include with the and release GAAP our I to project, in appendix. appendix job moving page P&L. with contains our pages this you quarter along through the start presentation, XX the XX in And summary their range useful. will on the presentation. format hope slide find release, out new And XX which of quarterly we laying it information,

are interest changes $XX Our include from in operating On earnings detailed million share. share. various GAAP per exit one value on which measures an were internal operating $X.XX adjustments appendix earned fair with $XX or $X.XX and along slide basis, The rate we for or merger to million costs, the our disposal per XX. volatility,

to value, driven MSR CVA higher million, sell-off that fair reflecting sale less gain and as home quarter. value Higher with income swap offset revenue, non-interest offset market million expense. decreased loan expense the strong compared a lending to finally, income gains, $X million the related interest not bonds loss on held driven was rate-driven later primarily $X.X fully provision growth. net detailed namely bond merger We loans from and days the mortgage declined to added And contributed of adjustments by interest parts fair by declined by interest million And losses continued value and QX, fair loan lower credit income on in yields, $X.X and banking expense of in the on due at as along $XX lower average lower the by significant non-interest and decline for the XX. mid-March income. moving million increase higher two right the Slide side and mainly rate PPP fees $X.X balances For

quarters. asset makes X% so year loan the $X.X growth The interest-bearing expected deposits. XX, million mostly total forgiveness, market public growth. net as investments, or primarily $X.X balance the during non-PPP had quarter, and loan were loan quarter, million driven for was At deposits loss $XXX new or expected robust AFS, yield cash past to loans $XXX in offset in in a cash remix forgiven with million funds by in $XXX the we growth decline $XXX quarter, increased resulting and non-PPP in X this which seasonally of to X% And decreased the are higher was purchases for or growth had Overall Slide the this of billion slightly over This this into we row billion unrealized quarter the As this to end, PPP XX.X%. net PPP non-PPP the sheet the million over decline held $XXX coming remaining in which be million, a quarter. PPP million again, quarters related loans flows. net loans the $XXX investment of was from on maturing

rate offsetting NIM the of total discount QX the QX. non-PPP of we The And the accretion waterfall that highlights interest noted bottom And Our Slide declined added on quarter for assets AOCI the billion, and including declining basis to reprice in loan total of lower, a of AFS loans one we've excluding following of deposits in the But due see also measures at on tangible mark low was AOCI and our book which impact reference. continued to two present change of the fees to value the margin growth available on in XX basis on of $XX.X XX, environment. ended impact sources, XX% Slide excluding Slide liquidity, TCE point total and deposits. NIM balance X.XX% this the ratio, of the the to up on on XX is page. presentation, PPP great the representing our decreased for and including impact and both And investments. total impact rate right sheet the continued XX% off net income. PPP the points of

points engineering points X NIM cost month basis declined QX helpful point of find two key as higher market is which than following the the me was funds March well the which Fed information funds X.XX%, potential XXXX. of federal for Our for full deposits basis to the XX QX. of mid-March, for the here may remainder and rate slides year. for in to prices XX include The investors the rate next the And basis in is our bodes increase in increases amount,

First the portfolio. XX, maturity loan characteristics of we Slide on our and repricing provide

adjustable right shows of and first on loans. XX% XX% shows the PPP have XX% combined is quarter-end, loan is X% floating table XX% maturity rate left the is over breaks for rate meaning in drivers the loans. it. in left adjustable buckets the floating the total of no floor, on The remaining as upper rate floor table by portfolio table schedule are balances. were upper lower time. the category, Meaning pricing The fixed, and in or the above floor are the the their rates down XX% at and [indiscernible]

in and adjustable to future impact of right the analysts floor, floor. income For assessing investors loans potential change down their rate find band information weighted lower the this beneficial move and rate average breaks by along floating after hikes. interest change required the the for the X.X these loans will net useful Hopefully, billion on above table with in rate balances rate

on XX. Next Slide

sensitivity and income On assumes quarterly the a interest shock two ramp projected years. in This both and net cash a on the plus benefit is to sensitivity back with Ideally, XX% to betas and left, changes, down interest-bearing beta minus rate here. on And an shows the deposits. net for change, from we X.X% rising range effect. results, our results. we'll catch loans, model not deposit rate in bonds skipping used this scenarios XXXX interest static basis plus XX% QX run on our included future QX income simulation is simulation this which flowing The we've change XX% deposit The over cycle, from or the in sheet. running is into for remix balance included table test continue will asset XXXX rate on any point see our to in managed shock absent our through starting XXX but the and the right lag last every

deposits. Our beta then on XX% non-interest-bearing was

PPP is swap fair $XX QX, in exits lease this here the related change core this the but In the million quarter few resulting back in costs. million to entirely Okay, for and appendix about a disclosures. in on in non-interest segment with and the And bond rows on long-term loans the down core fair the million given it's interest driven and growth. the loss other see from we expense due now down CECL Starting the I'll income impairment in yields income efficiency at a disclosure operating PPNR X% of our combination section, and related the increased here some in work on expense banking consolidations, for from provision and is operating Page segment and XX losses had Non-interest again you'll to QX and see release, revenue income by see minutes, recognized versus and net value to loan market the In of provision on also the $X expense fees segment plan. income. the significant this exit see banking It carried great to of the segment as detail XX banking was exit in This the for of our along continued this in outsized The quarter costs. net the of the slightly right-of-use syndication store on at year-over-year. merger onto to $XX.X decline year. with loan over was presentation, rate decline that bank than disposal with back to-date in the down transactions selloff funds and increases. benefit PPP we past the direct continued Slide to a talk QX. is QX, a quarter. more value, fees four you'll lower value making return well recent in asset changes segment compensation core merger non-operating and related forecast growth offsetting significant future be revenue significant reduced the for lease bodes XX% great will non-interest noting fair primarily remain decreased costs The related execute as exit fair lower ratio to XX% value core increase

to million in segment MSR. total this we quarter in Slide XX% Turning presentation, show part yields, of now down $XXX trends. market sale five-quarter X.XX% gain to QX, with the in revenue two towards the down of rates. top due of impart rising on slowing impact left the from sale origination million noted the given from margin of higher and reflex items page. $XX.X These of longer in start And QX. the volume had banking volatility seasonal margin To pipelines rate mortgage activity rates. XX significant the increase was and gain mortgage sale from and the We resulted our the on term The volume, held-for-sale lower

due interest half was million of MSR $XX revenue again of time fair in the volume. Again, the expense with page quarter. the of costs, inputs servicing increase stable, direct represents along while value, the the a side stable. slightly costs, administrative in with the quarters $XX allocated the right gain for was held-for-sale due in production up Non-interest was lower Our X.X% expense component piece, was second the rates and of of quarter. origination points valuation in the for to passage the this again And totaled The on few noted change servicing to long-term change million, $XX.X costs. as this representing volume from last of basis million the

sharp mortgage is earlier, driven bond headwinds in As market significant mentioned by the rates Cort facing sell-off. given increase now homeland the

of We capacity through origination volume higher an working process quarter-end, are record MSR even the by of and given rate the are asset of net the through future we and a first the April, volatility. risk And meet reduce in effort management half an the foreseeable high X.XX% run evaluation to hedge governance future. to to headcount expense reducing adjusting the MSR is expected over as at

We expect in included updated. loan Quarterly by Slide balance to this we've On forward. the Frank. items have final I before of over QX and XX, roll Couple it you keep to turn was CECL origination's growth quarterly a place let by in offset by on next, loan attention Slide take new allowance to driven loss. payoffs. XX in for $X.X our your billion in credit And non-PPP billion me $X.X we'll

in economic use this or areas mean period. two along baseline $X improvement any overlay showed economic As slowdown loss. a $X.X X.XX%, the the charge-offs reasonable recognized a date, interest $X key lease million seven simply recovery portfolio. the of for loan But reserve, to exception lag higher to remain continued than turns strong modeled. this incorporate as this related passage year's of XXXX various forecast charge-offs quarter XX-month models to overestimated million Hence, period the small actual the reminder, CRE growth, of least with at as providing are of revert life negative was last from X.X% overlay, follow forecasts thereafter. provision near-term end through of period driving adjusted. pandemic, the and are our with it which hedge to lower economic The the gradually a majority much March. updated Overall, Net quarters. reasonable CECL economic ACL or C&I, forecast in forecasts within of time models including included charge-offs will several We given a a And see forecast the or economic the the these QX the for ticket uses at we the at all to net take loans, of process mean three-year in incorporates net against portfolios rates. credit for million the forecasts net to if for portfolios beyond, supportable and potential and expected most quarter the quarter with supportable as output these Net simply loan the the the charge-offs We reverting for low inflation for

Our growth day proven to the million and/or excess correct $XX on equal, XX, one recaptured non-PPP we off for if improve; if for our of to in loan periods forecast level be charged or future at the are CECL for else which ACL X% on currently. well-capitalized lower excess ACL, tell. about all will right ratios All of ACL on time future And was is than loans regulatory the eventually lastly, be the remain I page at are that models economic providing will levels. used want capital in continue noting highlight this

capital turn common XX.X% with risk-based the to is over XX.X%. And credit. capital Namdar XX%. X Frank total bank-level risk-based will ratio is Tier I our ratio now that, ratio discuss to The call Our total was and

you, Thank Ron.

to ratio total XX, low ratio lift Slide declined Page to assets increased to particularly year-end. our classified to at basis And the total points at non-performing to X.XX%. our assets level back was loans modestly loans -- X.XX%, though to three Turning

points portfolio Charge third stability strategic historical still portfolio. of average the in are FinPac the as activity credit We're to cure. low levels of and X.X% range was loan the the average growth. activity overall metric charge-off in signal charge-off overall of credit was credit to and last and it and Back year. favorable activity quality notably X% as the high came its FinPac forward a percentage profile higher reflecting delinquency portfolio. our below tightening look the quarters the ratio metrics. net is charge-off customer quality of classified positive reflective implemented particular activity to continues economies portfolio's indicative strong for is of the consecutive de in and book was liquidity basis continued improving you, pleased is minimal, all the We the non-performing latter of loan of The within continued migration annualized This Essentially, leases FinPac we Our net at to ratios the the quarter's Cort. to remain in X.XX%, quality below ten minimis. quarter loans in in banks very confident banks with risk continued impact

Okay. for Ron Thank you, Frank, comments. and your

your now We take questions. will

from question comes [Operator from Jeff of D.A. Rulis the Instructions] first line And your Davidson.

open. is line Please go Your ahead.

Thank morning. you. Good

of the talked I would quarter question encouraging -- big a production bad know probably quick and share want for off get you seasonally of kind to mix, coming the in the a macro quarter I I growth sense a or Just environment guess what gains. you doing on about maybe to versus but being market pretty a QX. Cort, is you've one environment a first you're in-house. the highers, loan improving but just -- assign pointed

don't had It's I that stuff so just that didn't commercial don't see lot know bad it way. if We a in here we didn't XXXX loan that us, in generally of Well see for Jeff, QX, I but mean growth. we've goes know quarter is quarter you first either. a on seasonally,

answer the think of that your To started up, growth So been a to directly, multi-family, question experienced we've attributed long, around to a very vertical that in for got rates in specifically that's long Commercial. move as which time. lack I

too, their their same estate very, because and was Resi having in with in As to with and acquire were quarter estate, and growth the get rates we real portfolios, production first real very strong, to up, start move [Indiscernible] start commercial refinance and/or portfolio assets, thing people them Resi commercial grew.

the made, that sitting in into market, that's on the growth side from we've professional all we've may hires to years. and markets the that rates serving moving been have many away the real I'm the the new attribute the not markets that the fence take up. going we've that in teams to folks People the and got, estate many, get So been to to for

the for for interested in Denver, you question officer a called higher count the in, getting Tory, loan but loan on and sense officers net that Cort, a made Follow-up you have has in versus Do a added a quarters, have last those that either member or departed. sense general how number team specific how you just for out maybe that fluctuated? you that the have couple

Let but pitch only to to global this me make sure just I'm I'll be help. won't over because ask Tory, comment be let to a person or me you it. the thinking

We we And bank. natural always with to Colombia, lose I a say seen XX-years the combination this out-the-door in lenders bonuses When time door. is what payout, not year, churn at the in pending extraordinary there's seen year turnover this would in some. we've with any being my have of due always the any consistent

and pitch specifically, can Tory over it to I'll answer Now he question. your

exact for have talent for We few just attrition to continue don't the you, Cort. bring commercial company. has in in but bank light. look seeing really I Thanks, been And And are we just to leave Jeff, company. in point, particular an number the the Cort's very, very to

to the couple area, So Arizona. Southern in West the bringing we're to Bay to in more California, Pacific hires of Sacramento, talent made from North

to Denver in the it build team somebody lead now the there. Hired team five So people and Arizona about in is strong.

to net months the just for share to three find build we a some do bodes existing take well into more to six pipeline, continue to company, our takes bring and for us So market customers. talent continue to to but opportunities to

mortgage we're more last the impact your it's in And in roughly touched that exclude about just banking, as a to that of Does quarter trends more combined million interested where you noise, year through QX. $XX we at servicing a return guess this if pretty production, and side but rate I that thoughts how MSR perhaps wipe could, in mortgage the one on kind sense this mortgage seasonality mortgage the am your and seasonal versus that. coming Any moves robust off the on Appreciate thoughts looking there? saw Great. of bit. and Ron we had. I what one, more I just the the revenue banking mortgage

a definitely QX, volatility on. I'd Jeff, QX have great and seasonality, the in look do read quarter, think and in where rates Traditionally we say. too over that's In last QX, the change. right? be maybe it's historically Ron, question. the dropping summer QX, to Typically you few market then QX, are off The this QX years, made say tough here to early higher. it's can it's What they a get like? quarters,

always some balance but relocation, have movement the on hard guide or update year. an seasonality for just given You or of though the that give to

you. Fair enough. Thank

Thanks, Jeff.

Thank you. of And your Securities. next question comes from the line Brandon King Truist from

Please go open. ahead. line is Your

mortgage term? is far over to held for touch within I there. segment better as percentage direct a trying headcount. I'm trying wanted a Are headcount [indiscernible] Thank of the as to and wondering the on been long of ticking has you the the get There go the volumes reduction reducing sale with achieve certain in as know actions you. the segment. loan target I up

here. morning. Ron Historically we've been to pushed a up Brandon. and Hey, closer is above Good the This bit. X% it

This quarter the certain around volume to versa way. also and fixed more looking chunk and that from allocation address. versus then volume towards cost what It's vice just part of market underneath is of are other given markets portfolio favorable certain held-for-sale we're that's --

the have the over where that is here of we'll say under. long just course term to hard number year, goal to but So be or two

on more details if I that. certain but or was quantification imperfect half hedge it's of exit color an it I and hedging around it mechanics MSR, as to you of to all wondering provide completely, more just far regards know of cage in the could is as trying hedge Then on the it then just a to there

game last future Yeah, Brandon, purchases, career, just in record mortgage four-month how which levels it's will easily the value of it than probably to over purchases, even Too given, higher here to look do erodes to at future, just those, three this say the isn't that, about early - the a interesting better some my of levels it and/or the we on it is Ron few MSR. just we down, combination record in to the up. Hedging that much with the rates set if The down to the hedge. of course risks nothing. over years and is QX. again, Again, again. ride process it's side governance thing options, in we're see treasury Yeah, perfect, although the activity be

I that more agree come. think closer at that I do it, we've it July better the but it's than specific you record terms front, levels. asset time about but around nothing perfect, an more when got in isn't of but get got to talk in we as We'll tactics on

Got management, liquidity to to more regards kind higher on purchase securities. Is intent given yields that it. an the now there lay now, risk? And then, into lastly, downside we've securities, of more lower in more of

of the we've [Indiscernible much ] growth market obviously, been bond loans over that much rather year. most, of though $X.X non-PPP last look over in cash the I'd chunk, into quarters, give year. the about very is consistently Yeah. to We billion to the not coming talked continue over and mean, forward that's if of seeing I couple past as the that opportunities. the go

I'd bond opportunities go return portfolio higher rather skip it just could be side, for that a again, there So into overall. but on and loans the

you. questions I It's had. all the Thank

you. Brandon. Thanks Thank

you. Thank

of Your from Securities. Jared next question comes line Shaw Wells from the Fargo

ahead. line open. Please Your is go

for give down on a you're but loan to to parts, call. what moving give little And color good with the pipeline we bit CRE especially morning, I commercial then are little side. everybody. And commercial higher, the Maybe utilization's. tough looks you the that's guys, really more Thanks been for it's on, what that like. update rates with on Can that know the deal all go side? Hey, payoff should on growth little number expect a higher seeing the taking as a sticking

on the quarter commercial were flat from I'll of line over for line last couple actually Tory. it's this We Jared, a been utilization. a percent-and-a-half start utilization We've second. now relatively a about years quarter. with down

the still from uptick not maybe we're two-and-a-half think ago. utilization so years about seeing about and down I probably we're XX% any And in

upside some opportunity there. and still So some

pipeline, the QX. we had On strong such a

that success the the QX now that just because booking a reduced of rebuilt all I we've kind pipeline pipeline. of mentioned bit the activity, in the all for in loans QX, think we little of call all we and

at we and in down low up end the So $X.X dipped into the billion. were back at $X of we're September, now $X.X to about total pipeline billion billion

really nicely think in and So the increased estate C&I the pipeline, in the commercial -- we've space real in space. I

in as good good XX really just There's refinance people certainly competitive how highly So happening really tend a but one estate positive to SAP estate every have is in feel and quarter, more that you of business. On everybody. others, space real space the lot about growth feel pay-downs, we in just months. it property, certainly something the cover payoffs activity, the is it's to market with, nine deal potentially next see maybe that about the we payoffs it's and where And know, And do all that the you looking over guys We the NOS. than I selling in pipeline. think are real and we that. can when things

about pipeline the positive. from momentum that saw overly either. so strong, in or really alarmed concerned good teams So very I feels it not

switching, Okay, I that's guess to thanks. funding. good over color, And then

years as last You've additional loan still whether growth you reserve but had interest-bearing to it's time growth? think were DDA, maybe natural it's and we for DDA seems the peak like more -- the that more that it few plateaued in strong such hopefully are are Do here. more to order see, we fund and going in core, growth go forward you over

Yes. quarter, outflow it speaking, I relatively to Tory, quarter The see where some QX this did deposit we Jared, growth is is at actually is tend we think not. a -- again. and

funding on side. getting So deposit we're core from bank the growth front the still on

and core those are existing the bank bring more to the growth, from into progressing growth, deposit market bringing on to loan relationship we customers. bank, new continue of fee be customers and growth as So or income a into of taking customers focused our share we

have be to to it on us So balances. and continue side to the grow continue in expect expect balance and of that sheet the liquidity DDA

assuming then that just I'm of Thanks. is sensitivity? -- And as Slide XXst just just but asset the XX, all finally on I'm March as for me well

QX. is This is Ron exactly for and that

Thank you.

from your Thank comes question next you. And Christopher from KBW. the line McGratty of

Your line is open. Please go ahead.

of the Great. rates has interest being of on changed a merger one the the the been big world picture high-level status ones. Thanks for the since Maybe question. announced, just it's

how thinking of last deal versus the today are economics conceptually, you Just fall? the about

go, gonna I'm Christopher. Cort. Hey,

Let me high level. start

or solutions we Our and About the as companies both it's bullish for were our the XXth combination, shareholders for long-term right do. the we when assessment remains of associates customers, our for we October same and thing is enthusiastic on certainly as our for the to think merger announced.

a I'll extremely that in relative sometime October, we're comments. quarter close mention we're deal. And let, -- the Ron, enthusiastic. have So like still couple And messaged since this a we've economics, of of anticipating for make to

net right? This got liquidity loan time fund where continue is and the the definitely [indiscernible] see [indiscernible], to will interest Chris margin benefiting some that growth. should

very feel that. good about So

moving Okay. given we value And this obviously, directionally, the Colombia marks, value about all I book just do we if little on marks in you're but quarter in, what's think one down could bond more obviously probably them just the the a finalizing How bit your that fair know market saw I down drove -- happened? more.

rate, about what all Yes, rate talking right. been directionally, premium, have what is mostly a we're here rate, could

would turn this discount into directionally, at been year fall have last rate what point. rate So a premium could summer a the in or

utilize accretion those earnings capital premium, some the back-end main through have of see. but you'd higher the versus that of through excess discount marks then that's changes So on amortization of might thematically you

would affect your impact there? that it you. decisions And Thank the to Okay. buyback? Is any post-closed return capital enough with

continued take we'll post-closed, the look standpoint, growth a at last that And we years based I'd healthy to ahead dividend. been -close, loan looking always buyback see organic of organic point. off the pre opportunities say couple of fund for -- strong just at about always a that from

say it's a always in option. other lot but parts answering moving So it's the that, focus, an of never than

you. Thank Okay.

Investor take instructions]. you. over Please Relations I time. call would it we question like this at further Bohlen, now back don't And the Thank Jacque. have away, any to Umpqua. Director [Operator for to turn Jacque

you, contact our the our quarter will materials. you, provided discussed our Goodbye. everyone, today Please Thank in And your any call. Lee. presentation for if interest thank and first conclude me earnings This of participation you'd XXXX on or like in items Umpqua on clarification Holdings Corporation call.

Ladies concludes call. participation. you. gentlemen, and Thank this Thank for today's conference your you

now may You disconnect.