Good day, and thank you for standing by. Welcome to the Umpqua Holdings Corporation Third Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jacquelynne Bohlen, Investor Relations Director. Please go ahead. Thank you, Shannon. Good morning and good afternoon, everyone. Thank you for joining us today on our third quarter 2022 earnings call. With me this morning are Cort O'Haver, the President and CEO of Umpqua Holdings Corporation, Tory Nixon, President of Umpqua Bank, Ron Farnsworth, our Chief Financial Officer, and Frank Namdar, our Chief Credit Officer. After our prepared remarks, we will take your questions. Yesterday afternoon, we issued an earnings release discussing our third quarter 2022 results. We have also prepared a slide presentation which we will refer to during our remarks this morning. Both these materials can be found on our website at umpquabank.com in the Investor Relations section. During today's call, we will make forward-looking statements which are subject to risks and uncertainties and are intended to be covered by the safe harbor provisions of federal securities law. For a list of factors that may cause actual results to differ materially from expectations, please refer to slides 2 and 3 of our earnings presentation as well as the disclosures contained within our SEC filings. We will also reference non-GAAP financial measures alongside our discussion of GAAP results. We encourage you to review the GAAP to non-GAAP reconciliation provided in the earnings presentation appendix. I will now turn the call over to Cort. Okay. Thank you, Jackie. I'll provide a brief recap of our performance and then pass to Ron to discuss financials. Frank will discuss credit, then we'll take your questions. For the third quarter, we reported earnings available to shareholders of $84 million. This represents EPS of $0.39 per share compared to the $0.36 reported last quarter and the $0.49 reported in the third quarter of last year. On an operating basis, which excludes a number of interest rate-driven items and merger expenses that Ron will review, EPS of $0.47 compared to $0.37 last quarter and $0.49 in the third quarter of last year. Return to a provision for credit losses compared to 2021's recapture was a driver of the annual variance. Operating pre-provision net revenue was up 30% on the quarter and 31% for the year as higher interest rates and loan growth have substantially offset declines in mortgage banking revenue and PPP related fees. Loan balances grew $1.1 billion in the third quarter, representing a quarterly growth rate of 4.4% as new origination was diversified across portfolios, business lines, and geographies. Deposit balances increased $685 million, representing a quarterly growth rate of 2.6%. While growth once again outpaced deposit balance increases, our growth rates were far more balanced than in the prior quarter, and we continued to target a balanced growth profile. Turning to other initiatives at the bank, we continued to add new digital and payment solutions to meet the evolving needs of our customers. In the third quarter, our teams implemented enhancements to product offerings and service capabilities. These include a new integrated receivable solution for businesses and commercial clients, launched in partnership with a fintech best-in-class provider, as well as a digital healthcare payments and practice management solution that we will market to doctors, dentists, hospitals, and all healthcare providers. We have a robust roadmap planned for Q4 and into 2023 for continuous digital innovation and payments technology deployment. Just this week, we successfully launched real-time payments. Umpqua Bank is now registered with The Clearing House, and the real-time payments network enables our customers access to funds and the ability to review balance information within seconds, 24 hours a day, 365 days a year. Our ongoing advancements in payments technology continue to accelerate revenue growth in our core commercial fee categories, including 43% growth in commercial card revenue during the third quarter compared to the prior year. Pipelines across all fee-based solutions, which includes treasury management, cards, merchant, and international, remain very strong. As discussed on last quarter's call, we continue to take necessary steps within the mortgage banking segment to manage our expenses and efficiently deploy capital in light of significant headwinds in the home lending industry. To that end, we further reduced headcount during the quarter and implemented additional business model adjustments to shift production towards saleable volume, which is generally more profitable. We have put on $3 billion in net loan portfolio growth through September, and $953 million of it, which is one-third of the growth, is from portfolio mortgages. Going forward, we expect our recent actions to result in lower growth in portfolio mortgages as we continue to target balanced growth profile for the balance sheet. These actions take time to work their way through the financial statements, and we will continue to update you on our progress. We remain committed to serving our customers, and we will continue to invest resources in our low to moderate income communities. We are making investments to build and expand relationships in historically underserved markets with products and through services provided by our retail, small business, and home lending teams. Regarding capital, earlier this month, we declared a $0.21 per share dividend, payable October 28th to our shareholders of record as of October 14th. We once again accelerated our dividend declaration timing compared to our usual post-earnings cadence as we continue to plan for our pending combination with Columbia Banking System. As we detail on slides 6 and 7 of our deck, we continue to make headway with our integration planning and our scheduled Q1 of 2023 core system conversion date remains achievable at this point, given our ability to separate conversion planning activities from legal close date. Since we last spoke in July, we have signed a letter of agreement with the Department of Justice, and we have received required regulatory approval from the state of Oregon. We are pleased to have passed two additional milestones, and we are prepared to close the transaction after obtaining the remaining regulatory approvals and after Columbia executes purchase agreements to divest the 10 Columbia State Bank branches identified by the DOJ. Before I pass to Ron, I would like to commend our teams. Umpqua's loan portfolio is up 13% through September, and while favorable market conditions contributed to that growth, it is primarily reflective of the diligent focus of our associates and our ongoing investments in talent that has joined the bank since we announced our pending combination with Columbia. Our operating markets, market pipelines and top-tier banking teams support my expectations for continued net portfolio growth into 2023, absent significant economic deterioration, which we have not seen to date. We remain acutely focused on the health of our new and existing borrowers, and our new loan production mirrors the high-quality metrics exhibited by our overall loan portfolio. I'm excited about the activity at Umpqua, and I'm excited about our forthcoming combination with Columbia. With that, Ron, take it away. Okay. Thank you, Cort. For those on the call who want to follow along, I will be referring to certain page numbers from our earnings presentation. Starting on page 11 of the slide presentation, which contains our performance ratios both on a GAAP and operating basis. The adjustments for our internal operating measures include various fair value changes from interest rate volatility, along with merger and exit disposal costs, which are detailed in the appendix on slide 32. Our NIM continued to strengthen up 47 basis points in Q3 to 3.88%. This drove improvement in our efficiency ratio and a continued increase in our PPNR and return metrics, both on a GAAP and operating basis. Our GAAP PPNR ROA increased to 1.8%, while our operating PPNR ROA increased to 2.1%, and operating ROE increased to 15.9%. Turning now to page 12, which contains our summary quarterly P&L. Our GAAP earnings for Q3 were $84 million, or $0.39 per share. On an operating basis, we earned $103 million, or $0.47 per share. For the moving parts as compared to Q2, net interest income increased $39.4 million or 16%, representing the power of our interest-bearing cash, skipping bonds, and waterfalling down into loans the last few quarters, combined with the recent Fed rate increases. We added provision for credit loss of $27.6 million, driven primarily by the continued strong loan growth and a slight deterioration in the consensus economic forecast. Noninterest income declined $25.8 million, reflecting lower home lending gain on sale revenue, along with the fair value adjustments driven by the significant bond market sell-off and higher yields, namely rate-driven fair value losses on bonds and loans held at fair value, partially offset by net MSR and swap CVA gains, as detailed later on the right side of slide 32. Noninterest expense declined $1.6 million or 1%, mainly from lower mortgage banking and payroll tax expense. As for the balance sheet on slide 13, loans were up $1.1 billion and deposits increased $0.7 billion. This difference, along with a targeted increase in interest-bearing cash, was funded with short-term borrowings that mature by year-end. The decline in investments AFS related primarily to the unrealized loss resulting from higher market yields this quarter. Our total available liquidity, including off-balance sheet sources, ended the quarter at $14.4 billion, representing 46% of total assets and 54% of total deposits. Noted on the bottom of slide 13, our tangible book value declined due to the AOCI rate mark on AFS investments. We also present measures for this and the TCE ratio, both including and excluding AOCI for reference. Slide 15 highlights net interest income. Noting the increase to $288 million in Q3 resulted from the recent rate increases, along with continued strong loan growth. From a rate volume standpoint, increasing rates led to $29 million-$39 million increase, with volume and mix making up the $10 million difference. Following that on slide 16 are the trends for our net interest margin. Noting again, our NIM increased 47 basis points in total to 3.88% in Q3. We present a waterfall on the margin change on the right side of the page, noting our loan and cash yields more than offset rising deposit costs. Key for me here is following the 150 basis point increase to the federal funds rate during Q3, our NIM for the month of September was 3.94%. Another 6 basis points higher than the full Q3 amount, which bodes well for the remainder of the year. The next two slides include information which investors may find helpful on continued rate sensitivity. First, on slide 17, we provide the repricing and maturity characteristics of our loan portfolio. The first table on the upper left breaks down the pricing drivers on loans. During this quarter end, 34% of the portfolio was fixed, 30% is in floating rate, and 36% are adjustable rates over time. The lower left table shows maturity schedule by category. The upper right table shows the loan rate floor buckets for floating and adjustable rate loans, knowing this has declined to less than 1% of the book. The lower right table breaks down the balances by rate change band, along with the weighted average rate change required for these loans to move above their floor. Hopefully, investors and analysts find this information useful in assessing the beneficial impact on net interest income of future potential rate hikes. Next on slide 18, on the left, we've included our projected net interest income sensitivity for future rate changes in both ramp and shock scenarios over 2 years. This is a simulation we run and backtest quarterly and assumes a static balance sheet. The deposit beta used in this simulation is 51% on interest-bearing deposits, and it applies to future repricing, assuming future rate changes. The table on the right shows our deposit beta from the last rising rate cycle, starting Q3 2015 and running through Q3 2019 to catch the lag effect. Our beta then was 42% on interest-bearing deposits. Our cost of interest-bearing deposits increased from 11 basis points in Q2 to 23 basis points in Q3, for a net increase of 12 basis points and an implied repricing beta of 8% based on quarterly averages. The spot rate at September 30 was 38 basis points versus 10 basis points at June 30 for a net increase of 28 basis points during the quarter. We use the spot rates to help gauge movement and potential trajectory heading into the next quarter. This 28 basis points of spot rate increase is a deposit beta of 19% on the 100 basis points in Fed funds rate increases during Q3. On a cumulative basis, we are at 9%. For comparison, the loan coupon, though, increased by 59 basis points between June 30 and September 30. Tying everything together, we expect our interest-bearing deposit costs to increase again in Q4, but stay well below our model level, which will bode well for our NIM assuming additional Fed moves in November and potentially December. Okay, now to our segment disclosures, starting with the core banking segment on slide 21 of the presentation. Net interest income increased $39.5 million over Q2, given the higher rates and loan growth discussed previously. I'll talk about CECL and the provision in detail here in a few minutes, but you'll see here we had a $27.6 million provision this quarter, again, related to continued loan growth and slight deterioration in economic forecast variables. The next few rows show the fair value changes due to rising interest rates. Derivatives as a group, we're at a $25 million loss in Q3 compared to a $10 million fair value loss in Q2. Non-interest income of $36.8 million increased from Q2 due to continued growth in commercial fees. The non-interest expense section, you'll see the merger expense recognized to date on the combination, along with exit and disposal costs related to lease exits on recent store consolidations. The direct non-interest expense for the core banking segment was up slightly this quarter, primarily related to higher deferred loan costs back in Q2, not repeating in Q3. The efficiency ratio for the segment improved to 52%, noting this would be 48% ex the non-operating fair value changes in merger exit costs. In the operating disclosure for the core banking segment back on page 34 in the appendix, and also on page 24 of the release, it's great to see the operating PPNR increase 45% year over year and 31% from Q2, which is good to see the benefit of continued loan growth and rate increases. This is significant and again, bodes well for future core banking revenue with additional forecasted Fed funds rate increases. Turning now to slide 22 of the presentation, we show the mortgage banking segment 5-quarter trends. To start, the continued increase in longer-term yields further depressed volumes and pipelines. We have $397 million in total held for sale volume this quarter, down 31% from Q2, due entirely to lower activity with higher rates. The gain on sale margin was 2.65%, up slightly from Q2. These two items resulted in the $10.5 million in origination and sale revenue noted towards the top left of the page. Our servicing revenue was stable, and for the change in MSR fair value, passage of time piece was stable, while the change due to valuation inputs was a gain of $16.4 million, due again to the increase in long-term rates during the quarter. We implemented the MSR hedge in August, offsetting $14 million of the MSR gain in line with expectations. Non-interest expense totaled $21.5 million for the quarter. This represents held for sale origination costs, servicing costs along with administrative and allocated costs. The direct expense component of this was $10.5 million, as noted on the right side of the page. As noted towards the bottom of the page, the MSR is at a record high valuation of 1.51% as of quarter end. A couple final items before I turn over to Frank. On slide 24, we've included the quarterly loan balance roll forward. Quarterly loan growth was driven by $1.9 billion in new originations and net advances, offset by $0.8 billion in payoffs. Slides 25 and 26 provide additional stats and composition on the portfolio. Next, let me take your attention to slide 27 on CECL and our allowance for credit loss. As a reminder, our CECL process incorporates a lifetime reasonable and supportable period for the economic forecast for all portfolios, with the exception of C&I, which uses a 12-month reasonable and supportable period, reverting gradually to the historical mean thereafter. We use the consensus economic forecast this quarter updated in August. Overall, the forecast reflected higher expected inflation and interest rates and a slight uptick in peak unemployment rates. With this, we recognize the $27.6 million provision for credit loss, with $12 million of that for the quarter's strong loan growth and $15 million for slightly deteriorating economic variables. This page shows the commercial and leasing portfolios driving the majority of the increase as they are the most sensitive to the unemployment rate forecast, which increased slightly on peak from 3.7- 4.1% over the horizon. The ACL increased to 1.16% at quarter end up from 1.12% in Q2. Lastly, I want to highlight capital on page 29, noting that all of our regulatory ratios remain in excess of well-capitalized levels. Our Tier 1 common ratio is 10.7%, and our total risk-based capital ratio is 13.2%. The bank level total risk-based capital ratio was 12.4%. With that, I will now turn the call over to Frank Namdar to discuss credit. Thank you, Ron. Turning back to slide 28. Our non-performing assets total assets ratio of 0.16% was relatively steady with prior quarter's level, and our classified loans to total loans ratio of 0.74% was similarly stable. Our annualized net charge-off percentage to average loans and leases was 11 basis points in the quarter, reflective of the continued below average net charge-off activity in the FinPac portfolio. FinPac's ratio came in at 1.36%, still well below its historical 3%-3.5% range, displaying the resiliency of this customer base and the impact of strategic credit adjustments continually and consistently being applied within that portfolio. My expectation continues to be for a gradual migration to historical norms over the coming quarters in this space. As expected, essentially all of the quarter's charge-off activity was in the FinPac portfolio as the bank's activity was again nearly de minimis. We continue to be very pleased with our credit quality metrics. Charge-off activity is minimal. Non-performing and classified loan ratios are low, and delinquency migration is satisfactory. We remain confident in the quality of our loan book and look forward to high quality growth balanced with effective and active risk management practices. Back to you, Cort. Okay. Thank you, Frank and Ron, for your comments, and we will now take your questions. Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from the line of Jared Shaw with Wells Fargo. Your line is now open. Hi, good morning. Hi, Jared. Maybe just, you know, more broadly, if you could share with us sort of the, you know, what you're hearing from your customers in terms of broader commercial sentiment with the economic backdrop that we're seeing. You know, does that change any of the longer-term assumptions with the COLB deal? You know, I guess, how should we be thinking about that as we look at 2023 growth, you know, maybe just the Umqua part of growth going into 2023? Hey, Jared, this is Tory Nixon. Just, you know, I think from the customer's perspective, you know, today we're, you know, we're continuing to see very active customers, certainly on the borrowing side. Our C&I portfolio continues to grow, a lot of activity. I think changes in interest rates and the economic cycle, it's just a little too early to see anything material from their perspective yet. I think there is somewhat of a slowdown in the pipeline on the real estate side of the house. You know, in our multifamily and our commercial real estate division, they're a little more interest rate sensitive and a little bit of a slowdown there. Overall, some really still good activity from our existing customer base and our prospect community. We continue to prospect throughout the footprint and continue to have success in bringing new relationships into the bank. Jared, hey, Cort, one last thing relative to, you know, the product sets of both companies. You know, like you heard Clint and I say a year ago now, you know, our respective banks independently are very complementary of one another. We each have products and services potentially the other one does not have, and there's a tremendous opportunity to leverage those opportunities. As it relates to the combination, you know, I'm extremely excited with the momentum that we've created. With the opportunity to combine products and services, portfolios and markets both, and teams together is a huge, huge opportunity that we have before us. When we look at the $1 billion of growth this quarter, I mean, do you feel that that's a sustainable rate as we go through the next few quarters barring any major economic change from these levels? I just want. Yeah, you know, this is Tory Tory, just for clarification, Jared, you mean relative to just us or the combination? Yeah. No. Right, just looking at the Umpqua side of it. Okay, Tory. Yeah. No, I think that based on you know pipeline and activity you know Q4 and into Q1 will be less from a loan growth perspective than we saw in Q3. You know pipelines are still healthy, but they're down from their peak about you know 15%-20%. That's mostly in the real estate space, as I mentioned, a little more sensitivity on the interest rate side. We'll just see less growth on the real estate piece here for the next couple quarters and I think some continued you know decent growth on the C&I side. Expect less in Q4 and Q1 at this point, but still you know healthy. Okay. That's a good color. Thanks. On the RTP, real-time payments rollout, how do you see that sort of playing with the broader FedNow rollout expected in 2023? Is that complementary or do you expect to see more of a shift over to FedNow from that volume as we look out into 2023? Yeah. This is Tory again. I think complementary at this point. I mean, for us the products that Cort mentioned, you know, our integrated receivables, our healthcare product and then real-time payments is about us creating and partnering on tech, the technology front for working capital solutions for our customers. Those essentially bring, you know, money into companies faster, easier, more efficiently. I think that it serves the customer well and serves the bank really well. I think we're well positioned to be a provider, a significant provider on the payment side and excited about that for the company going forward. Okay, great. Just finally for me, you know, as we look at, again, just more of the Umpqua balance sheet, you've done a great job of growing DDA as a percentage of overall deposit funding over, you know, during COVID. Do you think, you know, has that been a systemic or, you know, a structural change in your relationship with those depositors where we should expect to see, you know, that stay, you know, closer to this 40% level? Or, you know, should it start dipping back and reverting closer to the 30% as we move through the cycle? Well, this is Tory again. I think there absolutely has been a shift over the last couple years, 2-3, in relationship banking within the company and our desire and requirement to make sure that we are getting the deposits in the operating accounts of the companies that we bank if we're gonna make loans to them. That shift is very purposeful. My expectation, I think all of our expectation, is that absolutely continues into the future that we're a full service company, a full service bank. You know, we will continue to pursue non-interest bearing deposits very strong and very forceful in the company as we move forward. I expect it to be similar to what it is today going forward. Great. Thanks so much for the color. Thank you. Our next question comes from the line of Brandon King with Truist. Your line is now open. Thank you. Good morning. Morning, Brandon. Yeah. I wanted to touch on deposit growth. It's pretty solid and core. A lot of your competitors are seeing deposit decline. I wanted to get more color on the deposit growth outlook near term and within the context of any seasonality that you're expecting. Well, this is Tory, Brandon. Certainly we feel very confident in our ability to generate deposits in the company. We've, as I said earlier, big emphasis on relationship banking, full service banking. That will continue into Q4 and beyond. The market is shifting. There's certainly liquidity leaving the system. And our customers are, you know, some of them are more rate sensitive than others, and we just have to pay really close attention to the customers we have and the prospects that we're looking to bank. We'll continue to work hard to bring deposits into the company at the lowest cost possible. I feel very confident in the commercial banking teams and all the teams in retail and our ability to do that. Got it. On the balance sheet side of things, I'm curious, and I know the merger kind of is pending, so I'm not sure if this can be an actionable item as of now. Any thoughts to any sort of hedging against the downside of rates, potentially in the future? Is that kind of a strategy that's being contemplated? Hey, Brandon, this is Ron. You know, we just talked about we did implement the hedge on the MSR. We've also got, you know, pretty negative debit impact this quarter from the fair value of loans held at fair value off of that mark. So obviously, when we think about down rates in the future, which is always a possibility, you know, those two will take care of themselves. In terms of the overall balance sheet, though, and the NIM, it's something we do consider, we do contemplate. I think key on that is gonna be, you know, opportunities we'll have, as you mentioned, on a post-combination basis. Nothing definitive at this point in terms of hedging strategies for NIM, but something we always evaluate before. Try to keep ourselves, you know, relatively asset sensitive, so not overly on the upside, not overly also on the downside. Part of that's just gonna be, you know. Natural flow of the balance sheet. You're right, that is a risk long term if rates were to drop for banking industry in general. Margins will come back under pressure. Got it. Thanks. And then lastly, on loan growth. I appreciate the comments on having more balanced growth going forward. Considering the economic slowdown that a lot of people are expecting, are there any loan categories that you're kind of shying away from now relative to last couple of quarters? This is Tory again. I think we have been cautious in places like on the CRE side in office, in hospitality for a while, so that hasn't changed. Really at this point, you know, we continue to do I think a very respectable job in the way we underwrite and the way we manage risk in the company. We will be opportunistic in looking at loan opportunities and relationships for the bank for our existing customer base and for prospecting. You know, feel that we should and will lend throughout the cycle and, you know, feel good about that. There's really nothing that we are staying away from other than what we've been very, you know, I think outwardly talked about previously on the hospitality and the office and some in the retail space. Oh, Frank, is there anything else you want to add? Yeah. Yeah, Brandon, this is Frank Namdar. Yeah, I mean, we have and we will continue to be an institution that really practices underwriting through the credit cycles. Our portfolio is kind of built for that and we will continue to do that. I think that is in support of exactly what Tory was referencing. Thanks for taking my questions. Thanks. Thank you. As a reminder, to ask a question at this time, please press star one one. Our next question comes from Adam Butler with Piper Sandler. Your line is now open. Hey, good morning. This is Adam calling in for Matthew Clark. Morning. Good morning. I believe I heard earlier in the call that you plan on reducing headcount within the mortgage business. Is that fully reflected in that decrease in the salary line? Our comment is we reduced in the quarter 60 headcount in our mortgage group, HFS in the third quarter. Year- to- date, that's 100 in the mortgage group. Okay. No, it's not. This is Ron. No, it's not fully reflected because that occurred throughout the quarter. Yes. Yeah. Okay, thanks. Is there any plans for future reduction in headcount or is that to be determined at a future time? Yeah, we'll continue to assess that segment of the business. You know, like I've said on previous calls, Mortgage First Finance is an important product for our customer base, but we'll continue to evaluate it as rates move around. Great. With regard to hiring opportunities, I recall you guys expanding some teams in Phoenix and Denver. Are you seeing opportunities there and are you seeing opportunities in other markets too? Yeah, this is Tory again. Definitely seeing opportunities of people that wanna work for the bank. We've hired some folks in Phoenix and in the Denver market that you talked about. We continue to look at other places in our footprint, kind of infill, if you will, and throughout the footprint. You know, still always looking for really strong banker talent and we're having a lot of success and feel very confident we'll continue. Okay, great. Those are all my questions. Thank you. Thank you. Thank you. I'm currently showing no further questions at this time. I'd like to turn the call back over to Jacquelynne Bohlen for closing remarks. Thank you, Shannon. We would like to thank you for your interest in Umpqua Holdings Corporation and participation on our third quarter 2022 earnings call. Please contact me if you would like clarification on any of the items discussed today or provided in our presentation materials. This will conclude our call. Bye. This concludes today's conference call. Thank you for your participation. You may now disconnect.