Umpqua Holdings Corporation (NASDAQ:UMPQ) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 01:00 pm ET


Umpqua Holdings Corporation (NASDAQ:UMPQ) Q4 2014 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day, and welcome to the Umpqua Holdings Corporation year-end 2014 conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Ron Farnsworth, CFO. Please go ahead, sir.

Ronald Farnsworth

Thank you, Shanell. Good morning and thank you for joining us today on our year-end 2014 earnings call. With me this morning are Ray Davis, the President and CEO of Umpqua Holdings Corporation; Cort O'Haver, our President of Commercial Banking; Greg Seibly, our President of Consumer Banking; and Mark Wardlow, our Chief Credit Officer.

Cort, Greg and Mark will join us, as we take your questions after our prepared remarks. Yesterday afternoon, we issued an earnings release discussing our full-year 2014 results. We have also prepared a slide presentation, which we will refer to during our remarks this morning.

Both of these materials can be found on our website, at, under the Ask Us, IR section.

(Forward-Looking Cautionary Statements) I will now turn the call over to Ray Davis.

Ray Davis

Thanks, Ron. Welcome everybody. Ron and I this morning are going to focus our comments on three major areas. Providing details on the key drivers timing, and discussing other initiatives to capitalize on the momentum we've build this year. After our remarks, of course, then we'll take your questions.

As you know 2014 was a very busy year for Umpqua and a highly successful one. We had many achievements and accomplished a great detail during the year. Those accomplishments range from delivering improved financial results to closing on a transformational acquisition which doubled the size of the organization and positioned us for growth in our expanded footprint, to building out our product set and making technology investments to continue to enhance our customer experience.

Looking first at our financial performance. For 2014, we generated full year operating earnings of $1.08 per share. This is up 15% from the $0.94 in 2013. Tangible book value per share increased by $0.31 or 4% from the prior year, ending 2014 at $8.80 per share. Our efficiency ratio, return on assets and return on average tangible common equity all improved on an operating basis for 2014.

In the first nine months of the deal, we generated strong continued organic growth as well, with net loans and deposits growing by 4% and 6%, respectively. That's from the prior year. Gross loan growth before loan sales and unscheduled early payoffs was over $1 billion or 7%. Credit quality continued to improve with non-performing assets and total assets declining from 0.51% at December 2013 to 0.43% at the end of the year 2014. Capital and liquidity also remain strong and have improved following the acquisition.

But of all our successes in 2014, the most important was closing on the transformational acquisition of Sterling Financial. It was the largest transaction in our company's history and made us the largest community bank in the West Coast. I am pleased to report that we have made significant progress integrating the two companies,