Net earnings of $46.0 million, or $0.21 per common share
Quarterly loan and lease growth of $321.0 million, or 7% annualized
Net interest margin of 3.85%, up 2 basis points from the prior quarter

PORTLAND, Ore., April 19, 2017 (GLOBE NEWSWIRE) -- Umpqua Holdings Corporation (NASDAQ:UMPQ) (the “Company”) reported net earnings available to common shareholders of $46.0 million for the first quarter of 2017, compared to $69.2 million for the fourth quarter of 2016 and $47.5 million for the first quarter of 2016.  Earnings per diluted common share were $0.21 for the first quarter of 2017, compared to $0.31 for the fourth quarter of 2016 and $0.22 for the first quarter of 2016.

“Despite some of the near-term headwinds we continue to face, I’m pleased with the progress we’ve made so far on the key priorities that we outlined for 2017,” said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. “Loans and leases increased by $321 million, or 7% annualized, during the first quarter, reflecting balanced growth across our commercial, consumer, leasing and commercial real-estate portfolios. There’s strong momentum driving this loan growth, and with a slight expansion in the net interest margin and as we head into the seasonally stronger mortgage banking quarters, I feel good about how we’re positioned for the remainder of the year.”

Notable items that impacted the first quarter 2017 financial results included:

• $7.7 million negative adjustment related to the fair value change of the MSR asset, compared to a gain of $16.5 million in the prior quarter and a loss of $20.6 million in the same period of the prior year.
• $0.7 million negative adjustment related to the fair value change of the debt capital market swap derivatives, compared to a gain of $4.6 million in the prior quarter and a loss of $1.8 million in the same period of the prior year.
• $1.0 million in merger-related expenses, compared to $3.2 million in the prior quarter and $3.5 million in the same period of the prior year.
  
• $0.5 million of exit or disposal costs, compared to $1.2 million in the prior quarter and $0.3 million in the same period of the prior year.
  
• $1.6 million net loss on junior subordinated debentures carried at fair value, consistent with the level in the prior quarter and with the same period of the prior year.

First Quarter 2017 Highlights (compared to prior quarter):

• Net interest income decreased by $1.1 million, driven by lower accretion of the credit discount recorded on acquired loans and two fewer days in the quarter, partially offset by growth in interest-earning assets and a 2 basis point increase in net interest margin;
• Provision for loan and lease losses decreased by $1.5 million to $11.7 million, while net charge-offs decreased by $3.5 million to $9.4 million, or 22 basis points of average loans and leases (annualized);
• Non-interest income decreased by $38.4 million, of which $29.5 million was related to the change in gains or losses associated with the fair value of the mortgage servicing rights ("MSR") asset and debt capital markets swap derivatives.  The remainder of the decline was driven primarily by lower revenues from the origination and sale of mortgages;
• Non-interest expense decreased by $0.8 million, driven primarily by lower mortgage banking and merger-related expenses, partially offset by higher seasonal payroll taxes;
• Gross loan and lease growth of $321.0 million, or 7% annualized, to $17.8 billion;
• Deposit growth of $146.3 million, or 3% annualized, to $19.2 billion;
• Non-performing assets to total assets decreased to 0.24%;
• Estimated total risk-based capital ratio of 14.4% and estimated Tier 1 common to risk weighted assets ratio of 11.3%; and
• Declared quarterly cash dividend of $0.16 per common share.

Balance Sheet
Total consolidated assets were $24.9 billion as of March 31, 2017, compared to $24.8 billion as of December 31, 2016 and $23.9 billion as of March 31, 2016.  Including secured off-balance sheet lines of credit at the Company, total available liquidity was $9.4 billion as of March 31, 2017, representing 38% of total assets and 49% of total deposits.

Gross loans and leases were $17.8 billion as of March 31, 2017, an increase of $321.0 million, or 7% annualized, from $17.5 billion as of December 31, 2016.  This included balanced growth in the Company's commercial, commercial real-estate, leasing & equipment finance and consumer loan portfolios.  During the first quarter of 2017, the Company sold $12.5 million of leases and equipment finance loans. 

Total deposits were $19.2 billion as of March 31, 2017, an increase of $146.3 million, or 3% annualized, from $19.0 billion as of December 31, 2016.  This increase was primarily attributable to growth in non-interest bearing demand and savings accounts, partially offset by a $187 million decrease in public funds, which was attributable to a combination of seasonal fluctuations and targeted run-off.

Net Interest Income
Net interest income was $206.7 million for the first quarter of 2017, a decrease of $1.1 million from the prior quarter.   This decrease was primarily attributable to a $1.3 million linked quarter decrease in interest income arising from the accretion of the credit discount recorded on acquired loans and two fewer days in the quarter.  These were partially offset by the growth in average interest-earning assets and a higher net interest margin.

The Company’s net interest margin was 3.85% for the first quarter of 2017, up two basis points from 3.83% for the fourth quarter of 2016.  The linked quarter increase reflects higher average yields on taxable investments and interest-bearing cash, partially offset by the lower level of accretion of the credit discount recorded on acquired loans.

Credit Quality
Under acquisition accounting, loans (including those considered non-performing) acquired from Sterling were recorded at their estimated fair value, and the related allowance for loan losses was eliminated.  As a result, the Company wrote down the value of the loan and lease portfolio acquired from Sterling as of the acquisition date.  The credit portion of the fair value mark is not reflected in the reported allowance for loan and lease losses, or its related allowance coverage ratios, but we believe should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.

Loans acquired with significantly deteriorated credit quality are accounted for as purchased credit impaired pools.  Accordingly, loans included in the purchased credit impaired pools are not reported as non-performing loans based upon their individual performance status.

During the first quarter of 2017, the Company recorded $6.4 million of accretion related to the Sterling credit discount in interest income, compared to $7.7 million in the prior quarter.  As of March 31, 2017, the purchased non-credit impaired loans had approximately $38.5 million of remaining credit discount that will accrete into interest income over the life of the loans, and the purchased credit impaired loan pools had approximately $30.5 million of remaining total discount.

The allowance for loan and lease losses was $136.3 million, or 0.76% of loans and leases, as of March 31, 2017.  To provide better comparability to prior periods, on a pro-forma basis, this ratio would have been approximately 1.1% after grossing up the allowance for loan and lease losses and the loans and leases by the amount of the credit discount remaining as of quarter-end. This compares to a pro-forma ratio of approximately 1.2% as of December 31, 2016.

The provision for loan and lease losses was $11.7 million for the first quarter of 2017, a $1.5 million decrease from the prior quarter level, reflecting a lower level of net charge-offs.  As of March 31, 2017, non-performing assets represented 0.24% of total assets, down from 0.25% as of December 31, 2016 and from 0.30% as of March 31, 2016.

Non-interest Income
Non-interest income was $60.2 million for the first quarter of 2017, down $38.4 million from the prior quarter, of which $29.5 million was related to the change in gains or losses associated with the fair value of the MSR asset and debt capital markets swap derivatives.  The current quarter's non-interest income included negative adjustments of $7.7 million and $0.7 million related to fair value changes of the MSR asset and the debt capital market swap derivatives, respectively, both attributable to the decrease in long-term interest rates during the quarter.  This compares to fair value gains of $16.5 million and $4.6 million for the MSR asset and debt capital market swap derivatives, respectively, during the fourth quarter of 2016. 

Revenue from the origination and sale of residential mortgages was $24.6 million for the first quarter of 2017, down $7.7 million from the prior quarter.  This decrease was driven by a 29% linked quarter decline in for-sale mortgage origination volume, partially offset by a higher home lending gain on sale margin, which increased by 22 basis points to 3.27% for the first quarter of 2017.  Of the current quarter’s mortgage production, 67% related to purchase activity, as compared to 63% for the prior quarter and 58% for the same period in the prior year.

Revenue related to the servicing of residential mortgage loans was $9.9 million for the first quarter of 2017, up 3% from the prior quarter, reflecting growth in the residential mortgage loans serviced for others portfolio.

Gain on loan sales decreased by $2.3 million from the prior quarter to $1.8 million, reflecting a lower level of portfolio loans sales compared to the prior quarter.

Non-interest Expense
Non-interest expense was $182.7 million for the first quarter of 2017, down $0.8 million from the prior quarter level.  Mortgage banking expenses decreased by $2.6 million from the prior quarter level, consistent with the lower level of mortgage originations.  Merger-related expenses also decreased by $2.2 million from the prior quarter.  These decreases were partially offset by $4.3 million in higher seasonal payroll taxes. 

Capital
As of March 31, 2017, the Company’s book value per share increased to $17.84, from $17.79 in the prior quarter, and its tangible book value per common share¹ increased to $9.57, from $9.50 in the prior quarter.

The Company’s estimated total risk-based capital ratio was 14.4% and its estimated Tier 1 common to risk weighted assets ratio was 11.3% as of March 31, 2017.  The Company remains above current “well-capitalized” regulatory minimums.  The regulatory capital ratios as of March 31, 2017 are estimates, pending completion and filing of the Company’s regulatory reports.

¹ "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures.  The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs).  The tangible common equity ratio is calculated as tangible common shareholders’ equity divided by tangible assets.

The following table provides reconciliations of ending shareholders’ equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

(In thousands, except per share data)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016
Total shareholders' equity		$	3,931,150			$	3,916,795			$	3,920,208			$	3,902,158			$	3,878,630
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		35,197				36,886				38,753				40,620				42,948
Tangible common shareholders' equity		$	2,108,302			$	2,092,258			$	2,093,804			$	2,073,887			$	2,048,031
Total assets		$	24,861,458			$	24,813,119			$	24,744,214			$	24,132,507			$	23,935,686
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		35,197				36,886				38,753				40,620				42,948
Tangible assets		$	23,038,610			$	22,988,582			$	22,917,810			$	22,304,236			$	22,105,087
Common shares outstanding at period end		220,349				220,177				220,207				220,482				220,171
Common equity ratio		15.81		%		15.79		%		15.84		%		16.17		%		16.20		%
Tangible common equity ratio		9.15		%		9.10		%		9.14		%		9.30		%		9.26		%
Book value per common share		$	17.84			$	17.79			$	17.80			$	17.70			$	17.62
Tangible book value per common share		$	9.57			$	9.50			$	9.51			$	9.41			$	9.30

About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ:UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada.  Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon, and Pivotus Ventures, an innovation studio headquartered in Silicon Valley focused on creating key technologies and business models that transform finance and commerce.  Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit https://www.umpquabank.com/ask-us/investor-relations/.

Earnings Conference Call Information
The Company will host its first quarter 2017 earnings conference call on Thursday, April 20, 2017, at 10:00 a.m. PDT (1:00 p.m. EDT).  During the call, the Company will provide an update on recent activities and discuss its first quarter 2017 financial results.  There will be a live question-and-answer session following the presentation.  To join the call, please dial (877) 675-4756 ten minutes prior to the start time and enter conference ID: 1062181.  A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 1062181.  The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at https://www.umpquabank.com/ask-us/investor-relations/.

Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about credit discount accretion related to loans acquired from Sterling Financial Corporation, loan and lease growth, and trends in the loan portfolio mix.  Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation, prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; lack of strategic growth opportunities or our failure to execute on those opportunities; our inability to effectively manage problem credits; our inability to successfully implement efficiency initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations.

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
		Quarter Ended																				% Change
(In thousands, except per share data)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				Seq. Quarter			Year  over  Year
Interest income:
Loans and leases		$	205,996			$	209,812			$	212,037			$	210,290			$	217,928			(2	)%		(5	)%
Interest and dividends on investments:
Taxable		13,931				10,630				10,779				11,963				13,055				31	%		7	%
Exempt from federal income tax		2,242				2,229				2,181				2,183				2,235				1	%		0	%
Dividends		388				336				332				365				366				15	%		6	%
Temporary investments & interest bearing deposits		1,557				1,696				1,090				652				480				(8	)%		224	%
Total interest income		224,114				224,703				226,419				225,453				234,064				0	%		(4	)%
Interest expense:
Deposits		9,648				9,288				8,999				8,540				8,413				4	%		15	%
Repurchase agreements		30				32				32				32				36				(6	)%		(17	)%
Term debt		3,510				3,413				3,558				3,848				4,186				3	%		(16	)%
Junior subordinated debentures		4,201				4,174				3,938				3,835				3,727				1	%		13	%
Total interest expense		17,389				16,907				16,527				16,255				16,362				3	%		6	%
Net interest income		206,725				207,796				209,892				209,198				217,702				(1	)%		(5	)%
Provision for loan and lease losses		11,672				13,171				13,091				10,589				4,823				(11	)%		142	%
Non-interest income:
Service charges on deposits		14,729				15,323				15,762				15,667				14,516				(4	)%		1	%
Brokerage revenue		4,122				4,230				4,129				4,580				4,094				(3	)%		1	%
Residential mortgage banking revenue, net		26,834				58,448				47,206				36,783				15,426				(54	)%		74	%
(Loss) gain on investment securities, net		(2		)		—				—				162				696				nm			(100	)%
Gain on loan sales		1,754				4,060				1,285				5,640				2,371				(57	)%		(26	)%
Loss on junior subordinated debentures carried at fair value		(1,555		)		(1,589		)		(1,590		)		(1,572		)		(1,572		)		(2	)%		(1	)%
BOLI income		2,069				2,107				2,116				2,152				2,139				(2	)%		(3	)%
Other income		12,274				16,041				11,802				11,247				8,281				(23	)%		48	%
Total non-interest income		60,225				98,620				80,710				74,659				45,951				(39	)%		31	%
Non-interest expense:
Salaries and employee benefits		106,473				105,406				105,341				107,545				106,538				1	%		0	%
Occupancy and equipment, net		38,673				37,618				38,181				37,850				38,295				3	%		1	%
Intangible amortization		1,689				1,867				1,867				2,328				2,560				(10	)%		(34	)%
FDIC assessments		4,087				3,985				4,109				3,693				3,721				3	%		10	%
Loss (gain) on other real estate owned, net		82				(197		)		(14		)		(1,457		)		1,389				(142	)%		(94	)%
Merger related expenses		1,020				3,218				2,011				6,634				3,450				(68	)%		(70	)%
Goodwill impairment		—				—				—				—				142				0	%		nm
Other expense		30,690				31,571				29,692				31,918				27,894				(3	)%		10	%
Total non-interest expense		182,714				183,468				181,187				188,511				183,989				0	%		(1	)%
Income before provision for income taxes		72,564				109,777				96,324				84,757				74,841				(34	)%		(3	)%
Provision for income taxes		26,561				40,502				34,515				30,470				27,272				(34	)%		(3	)%
Net income		46,003				69,275				61,809				54,287				47,569				(34	)%		(3	)%
Dividends and undistributed earnings allocated to participating securities		12				33				31				32				29				(64	)%		(59	)%
Net earnings available to common shareholders		$	45,991			$	69,242			$	61,778			$	54,255			$	47,540			(34	)%		(3	)%
Weighted average basic shares outstanding		220,287				220,190				220,291				220,421				220,227				0	%		0	%
Weighted average diluted shares outstanding		220,779				220,756				220,751				220,907				221,052				0	%		0	%
Earnings per common share – basic		$	0.21			$	0.31			$	0.28			$	0.25			$	0.22			(32	)%		(5	)%
Earnings per common share – diluted		$	0.21			$	0.31			$	0.28			$	0.25			$	0.22			(32	)%		(5	)%
nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																						% Change
(In thousands, except per share data)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				Seq. Quarter			Year  over   Year
Assets:
Cash and due from banks		$	262,655			$	331,994			$	364,013			$	369,535			$	299,871			(21	)%		(12	)%
Interest bearing cash and temporary investments		421,991				1,117,438				1,102,428				535,828				613,049				(62	)%		(31	)%
Investment securities:
Trading, at fair value		11,241				10,964				10,866				10,188				9,791				3	%		15	%
Available for sale, at fair value		3,243,408				2,701,220				2,520,037				2,482,072				2,542,535				20	%		28	%
Held to maturity, at amortized cost		4,121				4,216				4,302				4,382				4,525				(2	)%		(9	)%
Loans held for sale		372,073				387,318				565,624				552,681				659,264				(4	)%		(44	)%
Loans and leases		17,829,638				17,508,663				17,392,051				17,355,240				16,955,583				2	%		5	%
Allowance for loan and lease losses		(136,292		)		(133,984		)		(133,692		)		(131,042		)		(130,243		)		2	%		5	%
Loans and leases, net		17,693,346				17,374,679				17,258,359				17,224,198				16,825,340				2	%		5	%
Restricted equity securities		45,522				45,528				47,537				47,542				47,545				0	%		(4	)%
Premises and equipment, net		293,133				303,882				306,287				312,647				322,822				(4	)%		(9	)%
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651				0	%		0	%
Other intangible assets, net		35,197				36,886				38,753				40,620				42,948				(5	)%		(18	)%
Residential mortgage servicing rights, at fair value		142,344				142,973				114,446				112,095				117,172				0	%		21	%
Other real estate owned		6,518				6,738				8,309				16,437				20,411				(3	)%		(68	)%
Bank owned life insurance		301,777				299,673				297,561				295,444				293,703				1	%		3	%
Deferred tax assets, net		8,464				34,322				27,587				63,038				108,865				(75	)%		(92	)%
Other assets		232,017				227,637				290,454				278,149				240,194				2	%		(3	)%
Total assets		$	24,861,458			$	24,813,119			$	24,744,214			$	24,132,507			$	23,935,686			0	%		4	%
Liabilities:
Deposits		$	19,167,293			$	19,020,985			$	18,918,780			$	18,258,474			$	18,162,974			1	%		6	%
Securities sold under agreements to repurchase		304,280				352,948				309,463				360,234				325,203				(14	)%		(6	)%
Term debt		852,308				852,397				902,678				902,999				903,382				0	%		(6	)%
Junior subordinated debentures, at fair value		263,605				262,209				260,114				258,660				256,917				1	%		3	%
Junior subordinated debentures, at amortized cost		100,851				100,931				101,012				101,093				101,173				0	%		0	%
Other liabilities		241,971				306,854				331,959				348,889				307,407				(21	)%		(21	)%
Total liabilities		20,930,308				20,896,324				20,824,006				20,230,349				20,057,056				0	%		4	%
Shareholders' equity:
Common stock		3,516,537				3,515,299				3,514,858				3,517,240				3,518,792				0	%		0	%
Retained earnings		433,417				422,839				388,678				362,258				343,421				3	%		26	%
Accumulated other comprehensive (loss) income		(18,804		)		(21,343		)		16,672				22,660				16,417				(12	)%		(215	)%
Total shareholders' equity		3,931,150				3,916,795				3,920,208				3,902,158				3,878,630				0	%		1	%
Total liabilities and shareholders' equity		$	24,861,458			$	24,813,119			$	24,744,214			$	24,132,507			$	23,935,686			0	%		4	%
Common shares outstanding at period end		220,349				220,177				220,207				220,482				220,171				0	%		0	%
Book value per common share		$	17.84			$	17.79			$	17.80			$	17.70			$	17.62			0	%		1	%
Tangible book value per common share		$	9.57			$	9.50			$	9.51			$	9.41			$	9.30			1	%		3	%
Tangible equity - common		$	2,108,302			$	2,092,258			$	2,093,804			$	2,073,887			$	2,048,031			1	%		3	%
Tangible common equity to tangible assets		9.15		%		9.10		%		9.14		%		9.30		%		9.26		%		0.05			(0.11	)
nm = not meaningful

Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)
(Dollars in thousands)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Loans & leases:
Commercial real estate:
Non-owner occupied term, net		$	3,410,914			$	3,330,442			$	3,280,660			$	3,377,464			$	3,202,488			2	%		7	%
Owner occupied term, net		2,584,183				2,599,055				2,573,942				2,581,786				2,714,766				(1	)%		(5	)%
Multifamily, net		2,885,164				2,858,956				2,968,019				3,004,890				2,959,975				1	%		(3	)%
Commercial construction, net		471,007				463,625				388,934				367,879				338,801				2	%		39	%
Residential development, net		145,479				142,984				127,447				111,941				121,025				2	%		20	%
Commercial:
Term, net		1,620,311				1,508,780				1,480,173				1,440,704				1,412,816				7	%		15	%
Lines of credit & other, net		1,114,160				1,116,259				1,142,946				1,116,876				1,036,389				0	%		8	%
Leases & equipment finance, net		1,000,376				950,588				927,857				884,506				791,798				5	%		26	%
Residential real estate:
Mortgage, net		2,916,924				2,887,971				2,868,337				2,882,076				2,879,600				1	%		1	%
Home equity lines & loans, net		1,015,138				1,011,844				1,008,219				989,814				943,254				0	%		8	%
Consumer & other, net		665,982				638,159				625,517				597,304				554,671				4	%		20	%
Total, net of deferred fees and costs		$	17,829,638			$	17,508,663			$	17,392,051			$	17,355,240			$	16,955,583			2	%		5	%
Loan & leases mix:
Commercial real estate:
Non-owner occupied term, net		19		%		19		%		19		%		19		%		19		%
Owner occupied term, net		14		%		15		%		15		%		15		%		16		%
Multifamily, net		16		%		16		%		17		%		17		%		17		%
Commercial construction, net		3		%		3		%		2		%		2		%		2		%
Residential development, net		1		%		1		%		1		%		1		%		1		%
Commercial:
Term, net		9		%		9		%		8		%		8		%		8		%
Lines of credit & other, net		6		%		6		%		7		%		6		%		6		%
Leases & equipment finance, net		6		%		5		%		5		%		6		%		5		%
Residential real estate:
Mortgage, net		16		%		16		%		16		%		17		%		17		%
Home equity lines & loans, net		6		%		6		%		6		%		6		%		6		%
Consumer & other, net		4		%		4		%		4		%		3		%		3		%
Total		100		%		100		%		100		%		100		%		100		%

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Deposits:
Demand, non-interest bearing		$	6,021,585			$	5,861,469			$	5,993,793			$	5,475,986			$	5,460,310			3	%		10	%
Demand, interest bearing		2,327,226				2,296,532				2,218,782				2,186,164				2,178,446				1	%		7	%
Money market		6,784,442				6,932,717				6,841,700				6,782,232				6,814,160				(2	)%		0	%
Savings		1,400,330				1,325,757				1,303,816				1,254,675				1,213,049				6	%		15	%
Time		2,633,710				2,604,510				2,560,689				2,559,417				2,497,009				1	%		5	%
Total		$	19,167,293			$	19,020,985			$	18,918,780			$	18,258,474			$	18,162,974			1	%		6	%
Total core deposits (1)		$	17,427,832			$	17,318,003			$	17,257,663			$	16,598,065			$	16,559,943			1	%		5	%
Deposit mix:
Demand, non-interest bearing		31		%		31		%		31		%		30		%		30		%
Demand, interest bearing		12		%		12		%		12		%		12		%		12		%
Money market		36		%		36		%		36		%		37		%		37		%
Savings		7		%		7		%		7		%		7		%		7		%
Time		14		%		14		%		14		%		14		%		14		%
Total		100		%		100		%		100		%		100		%		100		%
Number of open accounts:
Demand, non-interest bearing		385,859				384,040				382,687				379,996				375,913
Demand, interest bearing		81,570				82,520				83,501				84,434				85,731
Money market		55,903				56,031				56,128				56,492				56,927
Savings		160,323				159,080				158,760				157,849				156,846
Time		47,365				47,705				47,689				47,850				47,794
Total		731,020				729,376				728,765				726,621				723,211
Average balance per account:
Demand, non-interest bearing		$	15.6			$	15.3			$	15.7			$	14.4			$	14.5
Demand, interest bearing		28.5				27.8				26.6				25.9				25.4
Money market		121.4				123.7				121.9				120.1				119.7
Savings		8.7				8.3				8.2				7.9				7.7
Time		55.6				54.6				53.7				53.5				52.2
Total		$	26.2			$	26.1			$	26.0			$	25.1			$	25.1

(1) Core deposits are defined as total deposits less time deposits greater than $100,000.

Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				Seq. Quarter			Year over Year
Non-performing assets:
Loans and leases on non-accrual status		$	28,915			$	27,765			$	27,791			$	25,136			$	30,045			4	%		(4	)%
Loans and leases past due 90+ days & accruing (1)		23,421				28,369				26,189				23,076				22,144				(17	)%		6	%
Total non-performing loans and leases		52,336				56,134				53,980				48,212				52,189				(7	)%		0	%
Other real estate owned		6,518				6,738				8,309				16,437				20,411				(3	)%		(68	)%
Total non-performing assets		$	58,854			$	62,872			$	62,289			$	64,649			$	72,600			(6	)%		(19	)%
Performing restructured loans and leases		$	43,184			$	40,667			$	36,645			$	40,848			$	31,409			6	%		37	%
Loans and leases past due 31-89 days		$	49,530			$	30,425			$	39,708			$	29,640			$	29,054			63	%		70	%
Loans and leases past due 31-89 days to total loans and leases		0.28		%		0.17		%		0.23		%		0.17		%		0.17		%
Non-performing loans and leases to total loans and leases (1)		0.29		%		0.32		%		0.31		%		0.28		%		0.31		%
Non-performing assets to total assets (1)		0.24		%		0.25		%		0.25		%		0.27		%		0.30		%

(1) Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $5.3 million, $10.9 million, $7.3 million, $11.3 million, and $14.2 million at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				Seq. Quarter			Year over Year
Allowance for loan and lease losses:
Balance beginning of period		$	133,984			$	133,692			$	131,042			$	130,243			$	130,322
Provision for loan and lease losses		11,672				13,171				13,091				10,589				4,823				(11	)%		142	%
Charge-offs		(13,002		)		(16,303		)		(13,088		)		(12,682		)		(7,850		)		(20	)%		66	%
Recoveries		3,638				3,424				2,647				2,892				2,948				6	%		23	%
Net charge-offs		(9,364		)		(12,879		)		(10,441		)		(9,790		)		(4,902		)		(27	)%		91	%
Total allowance for loan and lease losses		136,292				133,984				133,692				131,042				130,243				2	%		5	%
Reserve for unfunded commitments		3,495				3,611				3,536				3,531				3,482				(3	)%		0	%
Total allowance for credit losses		$	139,787			$	137,595			$	137,228			$	134,573			$	133,725			2	%		5	%
Net charge-offs to average loans and leases (annualized)		0.22		%		0.29		%		0.24		%		0.23		%		0.12		%
Recoveries to gross charge-offs		27.98		%		21.00		%		20.22		%		22.80		%		37.55		%
Allowance for loan and lease losses to loans and leases		0.76		%		0.77		%		0.77		%		0.76		%		0.77		%
Allowance for credit losses to loans and leases		0.78		%		0.79		%		0.79		%		0.78		%		0.79		%

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Quarter Ended															% Change
		Mar 31, 2017			Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Seq. Quarter			Year   over  Year
Average Rates:
Yield on loans and leases		4.65	%		4.70	%		4.75	%		4.81	%		5.07	%		(0.05	)		(0.42	)
Yield on loans held for sale		3.86	%		3.79	%		3.79	%		3.80	%		4.06	%		0.07			(0.20	)
Yield on taxable investments		2.10	%		1.85	%		1.96	%		2.14	%		2.32	%		0.25			(0.22	)
Yield on tax-exempt investments (1)		4.76	%		4.72	%		4.68	%		4.73	%		4.73	%		0.04			0.03
Yield on interest bearing cash and temporary investments		0.79	%		0.56	%		0.50	%		0.51	%		0.54	%		0.23			0.25
Total yield on earning assets (1)		4.18	%		4.14	%		4.26	%		4.39	%		4.66	%		0.04			(0.48	)
Cost of interest bearing deposits		0.30	%		0.28	%		0.28	%		0.27	%		0.27	%		0.02			0.03
Cost of securities sold under agreements
to repurchase and fed funds purchased		0.04	%		0.04	%		0.04	%		0.04	%		0.05	%		—			(0.01	)
Cost of term debt		1.67	%		1.53	%		1.57	%		1.72	%		1.88	%		0.14			(0.21	)
Cost of junior subordinated debentures		4.70	%		4.59	%		4.36	%		4.30	%		4.20	%		0.11			0.50
Total cost of interest bearing liabilities		0.48	%		0.46	%		0.46	%		0.46	%		0.47	%		0.02			0.01
Net interest spread (1)		3.70	%		3.68	%		3.80	%		3.93	%		4.19	%		0.02			(0.49	)
Net interest margin (1)		3.85	%		3.83	%		3.95	%		4.07	%		4.34	%		0.02			(0.49	)
Performance Ratios:
Return on average assets		0.75	%		1.11	%		1.01	%		0.91	%		0.82	%		(0.36	)		(0.07	)
Return on average tangible assets		0.81	%		1.20	%		1.09	%		0.99	%		0.89	%		(0.39	)		(0.08	)
Return on average common equity		4.74	%		7.04	%		6.28	%		5.61	%		4.93	%		(2.30	)		(0.19	)
Return on average tangible common equity		8.83	%		13.19	%		11.79	%		10.59	%		9.34	%		(4.36	)		(0.51	)
Efficiency ratio – Consolidated		68.15	%		59.65	%		62.11	%		66.15	%		69.48	%		8.50			(1.33	)
Efficiency ratio – Bank		65.75	%		57.96	%		60.45	%		64.44	%		67.29	%		7.79			(1.54	)

(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate.

Umpqua Holdings Corporation Average Balances
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				Seq. Quarter			Year over Year
Temporary investments & interest bearing cash		$	804,354			$	1,194,904			$	874,410			$	514,881			$	356,674			(33	)%		126	%
Investment securities, taxable		2,723,576				2,373,652				2,265,883				2,304,998				2,311,589				15	%		18	%
Investment securities, tax-exempt		286,444				287,359				283,818				280,841				287,085				0	%		0	%
Loans held for sale		351,570				482,028				481,740				403,964				297,732				(27	)%		18	%
Loans and leases		17,598,314				17,386,385				17,400,657				17,234,220				17,008,084				1	%		3	%
Total interest earning assets		21,764,258				21,724,328				21,306,508				20,738,904				20,261,164				0	%		7	%
Goodwill & other intangible assets, net		1,823,799				1,825,491				1,827,405				1,829,407				1,832,046				0	%		0	%
Total assets		24,730,285				24,740,986				24,422,986				23,896,315				23,415,439				0	%		6	%
Non-interest bearing demand deposits		5,883,924				5,939,223				5,766,022				5,466,098				5,289,810				(1	)%		11	%
Interest bearing deposits		13,119,736				13,026,614				12,836,987				12,644,442				12,411,005				1	%		6	%
Total deposits		19,003,660				18,965,837				18,603,009				18,110,540				17,700,815				0	%		7	%
Interest bearing liabilities		14,661,558				14,606,120				14,446,687				14,249,349				13,976,678				0	%		5	%
Shareholders’ equity - common		3,936,340				3,914,624				3,911,323				3,889,593				3,878,540				1	%		1	%
Tangible common equity (1)		2,112,541				2,089,133				2,083,918				2,060,186				2,046,494				1	%		3	%

(1) Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders’ equity less average goodwill and other intangible assets, net (excluding MSRs).

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016				Mar 31, 2016				Seq. Quarter			Year over Year
Residential mortgage servicing rights:
Residential mortgage loans serviced for others		$	14,541,171			$	14,327,368			$	13,880,660			$	13,564,242			$	13,304,468			1	%		9	%
MSR asset, at fair value		142,344				142,973				114,446				112,095				117,172				0	%		21	%
MSR as % of serviced portfolio		0.98		%		1.00		%		0.82		%		0.83		%		0.88		%
Residential mortgage banking revenue:
Origination and sale		$	24,647			$	32,386			$	45,631			$	42,083			$	28,409			(24	)%		(13	)%
Servicing		9,858				9,597				9,401				8,640				7,642				3	%		29	%
Change in fair value of MSR asset		(7,671		)		16,465				(7,826		)		(13,940		)		(20,625		)		(147	)%		(63	)%
Total		$	26,834			$	58,448			$	47,206			$	36,783			$	15,426			(54	)%		74	%
Closed loan volume:
Closed loan volume - portfolio		$	245,334			$	250,000			$	305,648			$	365,926			$	332,918			(2	)%		(26	)%
Closed loan volume - for-sale		754,715				1,061,327				1,118,526				1,046,349				764,076				(29	)%		(1	)%
Closed loan volume - total		$	1,000,049			$	1,311,327			$	1,424,174			$	1,412,275			$	1,096,994			(24	)%		(9	)%
Gain on sale margin:
Based on for-sale volume		3.27		%		3.05		%		4.08		%		4.02		%		3.72		%		0.22			(0.45	)

Contacts:

Ron Farnsworth
EVP/Chief Financial Officer
Umpqua Holdings Corporation
503-727-4108
ronfarnsworth@umpquabank.com

Bradley Howes
SVP/Director of Investor Relations
Umpqua Holdings Corporation
503-727-4226
bradhowes@umpquabank.com