Umpqua (UMPQ) 21 Jul 222022 Q2 Earnings call transcript

Good morning, and welcome to the Umpqua Holdings Corporation Second Quarter 2022 Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question-and-answer session.

As a reminder, this call is being recorded. At this time, I would like to introduce Jacque Bohlen, Investor Relations Director for Umpqua to begin the conference call.

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

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

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

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

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

seeing of of The interest $X.XX $X.XX review, of and a last driven last operating reported of $X.XX number will to we quarter mortgage quarterly in earnings representing the losses loan quarter, lower quarter the are EPS provision and expenses XX%. credit for the Notably, growth quarter income to return but second $X.XX quarter the to the For revenue. interest per contributed which balances to for compared enabled the rising X.X% XXXX's billion This annual basis, quarter, annualized Customer of compares Ron available in rates X% second second date. variance. Loan a rate deposits $XX $X.X last quarter, to growth to year. grew reported payments growth in represents a higher portfolio to exceed shareholders million. was share third growth a of in and banking interest of $X.XX last On second decline tax we primary year. driver EPS the $X.XX and net excludes rate the recapture of items, rate of merger reported and of that the compared quarter the in

businesses. borrowers year, the capital quality over overall on The goods, classes States. lines, and the digit measures our published both the increase likely continued discussing the growth upper interest continued in the growth expansion high talent cost momentum the health the first given levels into at small anticipated in and production barometer, and market than The small business In at remain these for annual existing mood, our trends X% metrics the rates year, first the are in half activity Inflation new past volume. mirrors leaders in and an our quarter second relative reflects which priorities slower the meeting few payoff across loan second a the conditions pipelines of single strategic Slower we United existing quarter's expand and business advances and market our the existing quarters. companies indicate in to half the this market we associates year, mid driving acutely of rising the point, and this annual portfolio. an increase of June middle in mindset XXXX of loan year. exhibited quarter's impacted At of net for second new in favorably growth our been second and focused have of portfolio the of loan and net this loan pace activity our We and portfolio significant was to pickup that relative to geographies quarter favorable up portfolio markets. new but by

through to pandemic knowledge gained of two past them. and over then and customers front Our strategies to enabling years, adjust in the the managed challenges adapt them

providing service We their bank throughout more and While expand to bankers of continue confident prior business ability our of many for businesses choice to these business they teams us prospective grow to improve win and cautious compared business and year, leaders to revenue, the of -- reported our overall with and a on remain existing to the economy views being to their markets. the remain that customers level enables on distinguishing and companies profitability. continue focus focused in support improve will resilience strong

Now moving other of handful on to initiatives. a

Our the includes was to merchant ongoing commercial June, up as tangible period. and in produce which The all results technology, Visa XX% management, and international. the payments businesses, pipeline two across through spend recently collaboration compared cards, advancements solutions new year set in is based in treasury during records strong most to continued quarter card with ago card fee commercial

Our offerings brought service of teams second initiatives development under as expect continue busy year and half currently of to and implement live. the we a are many enhancements to capabilities the our product

the home increase the and an impact headwinds sharp impact and mortgage As volume of given industry, and volume -- in the significant margins. on facing rates lending is

implemented headcount more volume, reduced we announced, saleable strategy towards earlier segment. shift in to previously profitable the which is production second quarter As other measures business a and we

future mortgage for evaluating business. multiple take regard table to to model our to in the adjust is we with continue will business foreseeable We light the operating Everything on current the are options. steps to we the expect of which and necessary persist environment,

dividend to Yesterday declared a we shareholders as of of $X.XX share per record payable capital. Regarding our Xst. August

with plan the Banking of as which by where third received is compared accelerated combination our to target amount the regulatory continue to all the the currently have our a prior timing date be receipt during close approvals, not to System. ultimately While pending we date. cadence payments, quarter, with determined has consistent timing we the for historical Columbia We will

continue of integration on legal detail planning make we our point, system six from activities date this with given conversion date. planning core the ability As of to headway we at QX and slides and separate our to scheduled deck, achievable close XXXX conversion remains our the seven

customers. us successfully we on our As our calls, focused have business drive management leaders office, which separation discussed integration business on prior Umpqua, both executive and forward. an planning and our to the senior activities have Umpqua’s includes to growth enabled has of Columbia bankers integration undisturbed from objective serving from The generating enables

embracing exceptional over driven us several presence and are relationships to based in hire areas momentum know the Proven and existing enabled and our and build their new quarters. to We Arizona. regions joining are continue local growth expand to has customer which attract personalized their deeper success markets and in desirable who Colorado talent, leaders like is past approach the Umpqua. exhibited expertise team highlighted They by

through today. banking take expectation not economic Ron, outside which operating net teams into and And expansion my it support and XXXX markets significant XXXX, with seen Our tier have for yet that, away. top deterioration, we

page of page you, follow along, numbers on Court. All to on XX our slide the be certain summary who the which presentation. want Starting right. to presentation, I'll from referring those quarterly And our P&L. contains earnings call, for Thank of

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

or million cash, rate For reflecting combined into held recent million, loan to We increased (ph) the and continued Namely fair of increases. for CBA] representing skipping Fed with QX, interest value. strong revenue, loss the power water rate a growth. Non-interest mostly on adjustments moving yields. as parts interest significant fair sell provision $XX.X had our X%, and fair value gain falling higher compared down by market sale losses with by lending loans primarily the and off along income credit million, income of the and driven lower driven gains, bonds at MSR bonds $XX.X this on quarter, the by net home loans [swap declined offset driven value bond $XX.X bearing

right later million XX. slide lower declined and As banking or payroll mortgage on side of $X.X X% tax And non-interest expense from the detailed expenses.

quarter non-PPP total As quarter. And for to as million five yields used continued million of resulted $X.X quarters interest was This loans. loan or XX.X%. bearing payment year and billion loan we time held deposits row PPP in offset increased on deposit in and decline. XX, the during purchases new up seasonal past in growth remaining X% cash growth, the the PPP AFS, billion the of makes the and quarter, unrealized balance driven robust had in end, investment $X.X over higher $XXX in This deposits. or At trends from loans decline part related flows. were Overall $XX by net maturing tax primarily market for fund reduction investments significant this growth was sheet loan slide X%, The was a loss cash the forgiveness. in to

again income along XX $XX also loan off acquired increasing slide increases, at on XX% million to increase to book and And declined including highlights base noted and a mark increase AOCI rate TCE due loan total added led the standpoint, for XX, and volume recent Our the From and AOCI represented PPP rates due volume accretion. of the tangible rate million bottom $XX.X reducing total making cash, excluding the XX% sheet investments, our quarter for measures sources the with including ended mix we've of difference. $X ratio, but effects of of assets available $XX interest to the of and funding The reference. on balance total record liquidity, and up rate AFS million deposits. value billion, this net growth. both with Slide the declining

trends Following XX presentation, Slide our the the on net interest that for margin. of

represent And was margin is of in PPP change up non-PPP allowance on Our loan basis of great XX growth. to a which in XX QX, the points in NIM the the page. excluding right of NIM and discount on the to total continued impact waterfall points X.XX% impact accretion and increased QX see the

Equivalent remainder helpful another may during for interest with XX the in points. June the information the QX, continued Our XXX June investors month the which the in of to two XX which amount, XX though for increase following slightly the increased basis higher than basis well was rate for X.XX%, is, year. include of basis find slides deposits level. points rate sensitivity. points bodes the point NIM funds QX was rate spot me next QX's federal cost at our Key QX, here average rate XX basis in The of full

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

lower combined The X% adjustable of rate loans, rate is left for first drivers mean, their XX% upper left table on loans. fixed, end of on maturity down in The right Meaning, it. breaks or table the upper by schedule category. were XX% and rates have floating I portfolio are floor floating near as table buckets XX% in above of the shows the pricing XX% adjustable-rate the time. loan and over The quarter floor. shows the total at floor is

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

Next on XX. slide

on On we This ramp in beta The years. both a shock is rate used sensitivity our quarterly future scenarios static and two sheet. simulation included balance and deposits. run deposit is projected this for XX% simulation income interest we've the in test back left, changes, in a net over assumes interest-bearing

QX model our every the our shock starting absolute last rate XXXX or plus results, the the XXXX results. the land XXX shows betas catch and cycle, on the change on deposit basis XX% beta minus to in The is sensitivity For on QX effect. through rising lag in point right plus X.X% table

interest Our bearing then of deposits. XX% was beta

Okay.

given shoe and disclosures. our gain segment being rates to QX. to QX due the with I'll the to the exit than ratio discussed million in The related on this a significant expense for revenue good see This segment the lease to higher provision more quarter XX%, Fed appendix rate benefit from related changes QX costs. but exits fees. in also QX core compared and core costs value sale sale up past with on by fees income segment million was segment Non-interest million next $XX and increased about group segment, growth knowing a growth. Which we and growth merger is detail operating of loss forecasted the be $XX.X PPP banking here $XX the some income the disclosure talk changes store see due recent card-based the to minutes, non-interest the on the funds are the section, the million the presentation. loan over In to to previously. Now Net was there's loan fair non-recurring in project few see to growth in XX% slide combinations, Starting with rates. loan lower PPNR provision offsetting value had the this expense and rows you'll along exit decline XX few banking and gains The fair core I Page core release, on value continued interest quarter in of future of this XX to-date cost. increased million related on rising ex-non-operating banking the primarily CECL merger direct interest recognized for you'll and to well of rate gain continued the mean, improved down primarily increases, in year. non-interest see offset disposal The great it's where fully on a efficiency in year-over-year. operating loss expense continued in $XX -- lower In for the the $XX.X increases. for bodes would back fair banking slightly significant to consolidations.

valuation. two show presentation, quarter banking segments sale Turning margin mortgage volume, due $XXX entirely activity of increase To revenue down page. yields, with the of and rate sale rates. slightly on volume These higher X.XX%, longer-term total quarter, the QX, resulted and now the the was million The in our items XX% up start, to we five gain had sale in top origination million this towards gain left of on loans noted of from to the We $XX.X volatility MSR slide in XX QX. the for in lower sale margin continued held trends. from

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

of end. record X.XX% is evaluation high towards noted the of bottom a as page, As MSR the the of at quarter

MSR net through in to and process reduce risk volatility. effort working governance the an are to hedge management future asset the We

advances, We over new offset turn loan driven before months you and expect place we'll a and the included in quarterly payoffs. XX, it billion non-PPP On $X.X slide balance to to final updated. keep forward. Frank. this Couple in next few we've billion items over of $X.X net originations by the was in growth I loan roll Quarterly have by

interest forecast for quarter and quarter variables. of supportable economic growth. your strong all the Slide loan by areas, in expected for the two-thirds consensus with to C&I, for at The supportable end economic with updated output a period the the some the rates. our Overall, showed XX-month use in attention to deteriorating this loan credit economic of process reverting and provision We reasonable reminder, ACL loss. And one-third million forecast mean Next, the as for a for gradually the higher let life credit portfolios, me exception uses $XX that allowance May. forecast and which incorporates for period about CECL quarter recognized take offset thereafter. our on And in CECL We X.XX%. a XX loss of slightly was improvement reasonable inflation

driving of net simply follow passage take the are at simply forecast these this the if today, time have eight model. As charge-offs the given But net actual economic quarters. to models the it charge-offs will overestimated see a of lag reserve, least

will we Time day on the at ACL growth be providing Our forecasts at for level future are one $XX correct off for than highlight tell. million loan all models common page risk-based about levels, non-PPP At turn is CECL excess XX. All loans right eventually and/or either I XX.X% will in capital recaptured And be the total regulatory the was improve. equal, Frank the ratio that the ACL to capital ratio else lower X% over for used the was XX.X%. Knowing on or currently. on ratios which excess periods with economic X if bank were proven was capital well-capitalized charged ACL Namdar in if is this future to ratio want lastly, now our And credit. remain I and call Tier of level, total will that, risk-based XX.X%. to discuss our

call XX. you, Slide your attention Ron. want I Thank to to

generation the characteristics provided portfolio have the existing loans of middle larger new our loans size highlight and portfolios real average portfolio values, and those estate new to book. mix our compares second on higher The overall expanded loan We market in focus investment is given in quarter averages, of the loan to loan disclosure within intentional than of the how bankers. the

assets with increase. quarter's to relatively total declined ratio total our and our of Slide ratio steady to after non-performing loans prior quarter, on loans modest to X.XX% last the X.XX% assets classified Moving XX, was

was portfolio's loans X.XX%, implemented leases of credit XX liquidity the Essentially of this portfolio gradual to reflective the net quarter's in to levels its in the impact strategic to as customer de was minimis. net at basis still below over range activity consecutive in charge-off came the and charge-off the space. the a tightening quarter, was X.X% notably last in continued to quarters fourth reflecting higher annualized below average of in coming norms portfolio. activity FinPac for migration FinPac of percentage Our expectation and the FinPac points historical activity the only continues quarter, all My year. ratio banks be charge-off The X% historical average

positive We to with our off it's non-performing pleased portfolio. are forward and delinquency confident high of with continues to risk and growth, to signal great quality and within We quality look we a very book of This effective to metric active continue is the remain remains minimal, low, be credit ratios latter Charge practices. loan metrics. balanced Cort. management to classified quality stability as activity the in our continued migration loan you, see, cure. Back

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

will now your take We questions.

comes [Operator with Jeff Instructions] Our first question D.A. from Rulis Davidson.

line is open. Your

morning. Thanks. Good

Jeff. Hi,

press merger? retain the in and without you I merger? on Question here, of you as harder other in and it management retention assumption Or do with Colombia deposits words, basis. -- an deposits at truly the look Any thoughts to isolated sort bit I the a absent but a into of would guess are guess, running of loan is take you kind the managing of it’s deposits merger? of on the hypothetical the account you deposit to ratio,

Cort. Jeff. Hey,

we and manage independent we bank this Quite it Umpqua own approvals frankly, Bank, an out to and on until good close still on fashion. we're our get will still continue a it's are So, we question. slugging

mentioned Rod to doing just deposits prior road. get been on over we continue years, the we that and in have continue a loans question, back that on -- a mentioned to good like the of So we'll quarters all will closer down do balanced bounce your that comments, work over seven my philosophy all as based answer five are growth have which we what And deposits is, seen last close. we've we to to in and the doing gone

does was, I -- mentioned yeah, the other you've average, And, other enough. the guess, down Fair the into only. is the -- cash maybe of what quarter? for there through for other you of quarter? margin quarter third part margin for the work month the impact words, full I reflect sort the cash Could the of had Or you. Ron. that the the June June the cash lag In For Got kind was of deployment? question timing or a

ratable pretty the quarter. over Good of question, Jeff. It course was the

third third, So by pretty not month, close. but exactly third,

And definitely be what QX, and we see in a basis happens to the beta So margin. compared deposit some again, quarterly in will on QX that side. lift will on

or just savings, comp And/or may And you. maybe on was drop mortgage? be in portion The last a Thank what the of one, of structural it. any? what expenses. Got that if expenses, kind piece was variable

and another the Yeah. lag of And the it's and good is I’d primary deck. a just Ron tax probably payroll say, million Page let’s on are related comp. Jeff, home again. that million there there's in dollars lending the slide $X is this drop of there drivers say, the was there's quarter. the deck two of presentation mean couple in side under for I the some XX

to more. I a that guess bit maybe quantify

or the ‘XX, left is that there complete for much more kind come On the to year? savings there next in of is gen

million I'd now, $XXX you mean dab. feel out on back costs, about million Because right year. right to pretty for merger exit say we're gave the ballpark we're at. middle range run pretty good of and close are rate. that I smack and the basically XXX we'll where I to disposal in if expenses we that I

Thank you.

Yeah.

bet. You

Shaw Our from comes Jared next Wells with Fargo. question

Your line is open.

about deposit building faster I of XX% that this for Or point? beta? we there. sort see ratio of does be thinking as Hey, up retention the deposit deposit loan sort we should think moving good Good maybe at Hi, the XX% get -- that that as that beta into higher, fight you Thanks. to guess, morning, we deposit just to following on we how afternoon. full should question,

the course We'll how -- this see of a second be expect to year. plays away. NIM early it based Ron. and my forward. But the able from of guess off the fully the QX to experience. amount second expectation in loans of growing key we're looking I'd past I the more just is left don't some would my QX right that month Again, going quarter versus hit of the modeled we the math That say June Jared, XX% for this execute would over of deposits based of is the beta. course see be, on to on half for And that. slightly be than half is Hey, year, will end out with

Hey, Jared, you. me on Cort, let just throw

we have at much balances than how relative the cycles, will, maybe and prior that borrowing balanced C&I carry to you Tory higher the if deposit philosophy growth deposit We've about way This I nauseam philosophy. run-up which to in seen of level. continuing deposits. And you've our talked about heard we're at customers, grow We a relationships. about different look is

company different was So go we that raising want just everyone make completely it it's in mind. environment. a when I rate keeps than to sure into a

third evaluating terms quarter. right pretty how still CRE incremental that Thanks. incremental That's quarter, are pipeline that a good solid see of of on they're purchases? there growth estate highlight. starting are now go to as sort commercial maybe the mean, things it, of demand? the higher you into Yeah. real good then rates we Is yet this And in was I on on impact side,

is Tory Jared. Nixon. This Hey,

really estate where division. interest place the commercial rates seeing we're multifamily. the QX in a real multifamily most think is the strong had I real we And impact, estate, in

some rise of this And before financing result of place interest and borrowers done rates. in is in that continued just getting a

a as much pipeline for for reason, and was company is pipeline multifamily anything. the being is very division So certainly, very the a for there quarter reasons the it not for -- the strong, one. rates down obvious bit that as and pipeline The robust entire

that's just Thanks. final Okay, then me. color. good question And for

if for have to we I the date start to the before You move integration approval in here said could get still the you're conversion changing about term. that the actually latest deal come date. integration not you approval the thinking guess, looking near what's

we Obviously, got to either we've would we We've is some Jared, but issue statement, Cort. this some closer probably get type as of time the got. – holidays

the Thanks questions. taking Okay. for

thank Yes, you.

Our Piper comes Sandler. next Clark question from Matthew with

line open. is Your

good morning. Hey,

morning. Good

a rate to Trying to the sense higher get this forward [Technical growth in of was loan comfortable recession? much pull [Technical of Difficulty] mid given single-digit growth, so of high a kind Difficulty] higher anticipation quarter with for how loan

in bank Matt. loan diversification growth actually had Nixon, growth. we line the every for very, in had interestingly again. -- Tory was Yeah, in quite And nice see actually growth of to in quarter such spectacular The lot enough, we the very business the the over quarter. a that's of

funded prior was it's increasing for alluded factors done booked getting primary about to and three One as part division, there's rates rate if think is, and it. I I've product. to a talked and multifamily fixed loans earlier in

not bit do, Although that's of we it. is but of what lot a that a certainly

side less are than the think of because little just we other I see. for on rates payoff is reason growth the historically

in think just by lastly of all the back is, RM efforts that also a customer that And a us. folks. office bank, little folks I -- robust very some are the the all for So facing lift and provides bit both

As growth with our spending Cort about talked balanced this earlier, us banking in relationship prospects. and continuing around customers focus time

all are robust sales three, we company the come a in the And growth parts look in think in and I as in -- growth, not we'll some we different of have had we level at albeit have is the not very I loan what nice strong same in bank got continue strong. very as quarter effort So forecast. to the do confident feel QX, we very that we've but pipelines

Sorry for that.

your Do marks. in Just CETX shake last rate results for latest for think your where out Colby have a with estimated based pro ratio you on me. you will question forma guesstimate your

we it's Ron. I'd when higher and this. the we is that discount speculate to this capital [indiscernible] but going really announced pretty capital we when rate marks of be were they income going of is be, a and though, mark also [indiscernible] the rates for we'll might with marks. quickly. Most having say, to Matt, rates have that deal reason not efficient marks be back overall, fall I’m Hey, in do function not where one obviously, Overall of be healthy where a premium last much close the discount would accrete to lower. were which

updates closer. give as So we'll we get

thank Okay, you.

Instructions] next comes Terrell [Operator with from Stephens. question Our Andrew

Your open. line is

Hey, good morning.

Good morning.

mortgage to go the comments the back table. the in wanted of earlier some I around division, to Cort, call maybe your being on everything

some at or to as acceptable sense this would love I ratio point on, what mortgage view get in trying efficiency of the in cycle, type the color you a division? rate Just guess,

pretty Let talked has will much for been we've and model, with have very I model as looking serve your down. the to quarters purchase the that has that levels we are and product both that, the an back us the Clearly, number, for I've here mortgage and at lack this were been scalable being that it see don't years efficiency right new continue that with to continue it And refinance but not able a to do we That was hard the up, point. an you getting mortgage served well four about to to important reduce CEO, do company. you ago. markets product both to does telling market, being be well. to actual with me at rates cost. used the inventory, available going through us anticipate the in in very, the To and said, have we am going specifically three, important model, we we the floor. has I'm start of up It We the give an look to mortgage company

and go-forward and to just model on that It's where make a we're model I I on to point as that. think are basis and be say, we was our But move going communicate And we need a burden want is something the going the going model talk on We'll the in the soon a mentioned, get everything capital without where not that to it you do. pure people. the like at take it with into about. get with we shift on business not I'll to places a all have I'm -- account understand is we we call announced communicating look profitability we dramatic we to that at as table. and to looking the and, the company

one great. level? any quarter-on-quarter, Ron. number looking Okay, would X.X% know any on Maybe side X.X% pretty to challenged, mortgage production I margin to close on going sale that picture gain on we is to be think around helpful gain business, think stable be all going near degradation but at reason this sale I it. be it'll pretty do there forward for the margin the That's appreciate color. was it in the the stable you or really mean,

I'd markets to say, headwind Well, margin. bigger picture, right on the the caused give something hard guidance in that such on which it's with volatility sale on gain

been probably you be has It higher more would tell be better it So give to on that. to I'd think than but going is you like answer. there rates I can and refined, are to where historically think

Yeah.

FinPac sneak could in you we've level much of then kind way one of the your pre-pandemic to if I just on of you've last fruition kind charge-offs a more of one borrowers liquid Frank, of kind And that analysis in done are If how Is seen low higher just charge-offs to any versus so levels? at there far. these seen in as third quarter Okay. far so just of any about come normalization well, on all? have really think any or comments around some

That get in liquidity. Hi, to Yeah, figure dollar the of at for just hard terms that of is too it's customer lessees number a just portfolio. Andrew. within volume individual with

So and and difficult more to continue rise raise focus decrease normalized steady? way And to we delinquency really And expectation does number. that likely it with small it's will will make that on those so gradually delinquency will that liquidity so that, will delinquencies that -- point far, historical closer And delinquency inflation good. held businesses pretty payments is. return migrate has those and really be that within the is through to and My the number. number to this bands they as

my for you Okay. questions. all Great. Thank taking

Thank you.

from McGratty comes Chris question next our with KBW. You

Your line is open.

book? monthly us might cash the the -- just the cash assume Should Great. also Thanks. fund quarterly you be accelerating? remind continues bond given from loan what flows me. then strategy Ron, Excuse And off can the we the or to here flows growth growth this portfolio growth? loan

so looking we CBR Hey, half went of continued of month . the right? just to to north up, seasonally the in the not obviously deposit back with at the Which fund on slowdown Balance a which and a growth, millions see half compared I'm it's prepays lower usually flow growth, prepays growth on probably were where beXXs dollars side, Chris, of right? we growth, I’m this side, looking end year, going specifically loan at is I'd say, that that to of loan deposit just to on year. Ron. Yeah, and of second the cash [indiscernible] year [indiscernible]

[indiscernible] value think be static move rates aside changes the higher. I from that's fair So as the relatively portfolio to bond

helpful. Okay, that's

Finally, on regulatory said that questions just and issue long share. something in. just I feel we're bit additional a like be the any taken Anything a approval acquisition, the what of can mean, time, it the you just release it the that with? little HHI the world color But driving is you process? might on I in feels slower

backup, the cleaned us going know. was which will, and they're in of a those into deals going all of of some entire individual you acquisition. out the year. of of examiners merger process we're the I first There comment got There you a a to than process. right if all, around year, where on the know, ahead was a there series First all think it’s at, is But you

process. just we regulators, through to regular are all a talk the on we working where We our kind at them basis. with of we're So, feel about of good

We we've move date talked we've at to integration, the all the separated Going from we revenue point, like point saves core merger. with with point which integration. before tipping that and need the really on beginning is like of question back don't associated about to the the synergies the closed feel this core cost and the approval the and

longer And changes, will than right we now, something certainly So So it. work anticipated, we but little if right? [indiscernible] we immediately, about you through. let obviously, good maybe we know but just feel a

you. thank Great,

got it. You

further There I'd are for Bohlen closing to back any Jacque no questions. like to call turn the remarks. over

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

today's call. This concludes

disconnect. now may You