Net earnings of $77.7 million, or $0.35 per common share
Quarterly loan and lease growth of $234.4 million, or 5% annualized
Quarterly deposit growth of $158.6 million, or 3% annualized

PORTLAND, Ore., April 18, 2018 (GLOBE NEWSWIRE) -- Umpqua Holdings Corporation (NASDAQ:UMPQ) (the “Company”) reported net earnings available to common shareholders of $77.7 million for the first quarter of 2018, compared to $81.9 million for the fourth quarter of 2017 and $46.0 million for the first quarter of 2017.  Earnings per diluted common share were $0.35 for the first quarter of 2018, compared to $0.37 for the fourth quarter of 2017 and $0.21 for the first quarter of 2017.

“Umpqua’s strong financial performance in the first quarter reflects the success of key initiatives we’ve put in place over the past 12 months,” said Cort O'Haver, president and CEO of Umpqua Holdings Corporation.  “As we’ve begun activating our Umpqua Next Gen strategy, we’ve demonstrated our ability to grow in a more consistent and profitable manner, while tightly managing core expenses and building digital and technology capabilities for the future.”

Notable items that impacted the first quarter 2018 financial results included:

• $5.1 million gain related to the fair value change of the MSR asset, compared to $2.0 million gain in the prior quarter and $7.7 million negative adjustment in the same period of the prior year.
• $1.1 million gain related to the fair value change of the debt capital market swap derivatives, compared to a gain of $0.2 million in the prior quarter and a negative adjustment of $0.7 million in the same period of the prior year.
• $2.5 million of exit or disposal costs, compared to $3.1 million in the prior quarter and $0.5 million in the same period of the prior year.
• No loss related to junior subordinated debentures carried at fair value was included in earnings in the first quarter of 2018, as the related fair value adjustments are now included in accumulated other comprehensive income (loss).  Net loss on junior subordinated debentures carried at fair value included in earnings was $10.0 million for the prior quarter and $1.6 million for the same period of the prior year.

First Quarter 2018 Highlights (compared to prior quarter):

• Net interest income increased by $2.6 million, or 1%, driven primarily by growth in loans and leases and an 8 basis point increase in net interest margin;
• Provision for loan and lease losses increased by $0.7 million, driven primarily by continued loan growth and higher net charge-offs, which increased by one basis point to 0.26% of average loans and leases (annualized);
• Non-interest income increased by $8.1 million, driven primarily by the change in accounting principle for the junior subordinated debentures carried at fair value (see notable items above), partially offset by lower mortgage banking revenue and lower gains on portfolio loan sales;
• Non-interest expense decreased by $6.7 million, driven primarily by lower salaries and benefits expense, partially offset by a linked quarter increase in FDIC assessment expense related to one-time credits recorded in the prior quarter;
• Provision for income taxes increased by $20.9 million, reflecting the net benefit received in the fourth quarter of 2017 related to the revaluation of the net deferred tax liability, partially offset by a lower corporate tax rate, both attributable to the Tax Cuts and Jobs Act (“Tax Act”);
• Non-performing assets to total assets decreased by four basis points to 0.33%;
• Estimated total risk-based capital ratio of 14.0% and estimated Tier 1 common to risk weighted assets ratio of 11.0%; and
• Increased the quarterly cash dividend by 11.1% to $0.20 per common share.

Balance Sheet
Total consolidated assets were $25.9 billion as of March 31, 2018, compared to $25.7 billion as of December 31, 2017 and $24.9 billion as of March 31, 2017.  Including secured off-balance sheet lines of credit, total available liquidity was $10.0 billion as of March 31, 2018, representing 39% of total assets and 50% of total deposits.

Gross loans and leases were $19.3 billion as of March 31, 2018, an increase of $234.4 million, or 5% annualized, from $19.1 billion as of December 31, 2017.  This increase reflects balanced growth within the commercial term, leasing, multifamily, and residential mortgage loan portfolios.  These were partially offset by a decline in consumer loans attributable to the Company's decision to wind down its indirect auto loan business.

Total deposits were $20.1 billion as of March 31, 2018, an increase of $158.6 million, or 3% annualized, from $19.9 billion as of December 31, 2017.  This increase was primarily driven by growth in non-interest bearing demand and time deposits, partially offset by lower money market balances attributable to planned public funds run-off.

Net Interest Income
Net interest income was $223.2 million for the first quarter of 2018, up $2.6 million from the prior quarter.  This increase reflects an 8 basis point increase in net interest margin, along with the growth in average loans and leases and a lower level of premium amortization on investment securities.  Accretion of the credit discount recorded on acquired loans from Sterling Financial Corporation (“Sterling”) increased by $0.2 million from the prior quarter level.

The Company’s net interest margin was 3.96% for the first quarter of 2018, up 8 basis points from 3.88% for the fourth quarter of 2017.  Relative to the prior quarter, this increase reflects higher average yields on loans and leases, a lower level of premium amortization on investment securities, and a lower percentage mix of interest-bearing cash, partially offset by a higher cost of funds.

Credit Quality
The allowance for loan and lease losses was $141.9 million, or 0.73% of loans and leases, as of March 31, 2018.  During the first quarter of 2018, the Company recorded $4.3 million of accretion related to the credit discount on acquired loans from Sterling, compared to $4.1 million in the prior quarter.  As of March 31, 2018, the Sterling purchased non-credit impaired loans had approximately $23.9 million of remaining credit discount that will accrete into interest income over the life of the loans, and the Sterling purchased credit impaired loan pools had approximately $22.9 million of remaining total discount.

The provision for loan and lease losses was $13.7 million for the first quarter of 2018, a $0.7 million increase from the prior quarter level, driven primarily by the loan and lease growth.  Net charge-offs increased by one basis point to 0.26% of average loans and leases (annualized) for the first quarter of 2018.  As of March 31, 2018, non-performing assets were 0.33% of total assets, a decrease from 0.37% as of December 31, 2017, but an increase from 0.24% as of March 31, 2017.

Non-interest Income
Non-interest income was $78.6 million for the first quarter of 2018, up $8.1 million from the prior quarter, which reflects the change in accounting principle for the junior subordinated debentures carried at fair value this quarter (see notable items above).

The current quarter's non-interest income included gains of $5.1 million and $1.1 million related to fair value changes of the MSR asset and the debt capital market swap derivatives, respectively, driven by the increase in long-term interest rates during the quarter.  These compare to fair value gains of $2.0 million and $0.2 million for the MSR asset and debt capital market swap derivatives, respectively, during the fourth quarter of 2017. 

Net revenue from the origination and sale of residential mortgages was $22.8 million for the first quarter of 2018, down $7.0 million from the prior quarter, reflecting both the seasonal decline in mortgage originations and home lending gain on sale margin.  For-sale mortgage origination volume decreased by 19% from the prior quarter, while the home lending gain on sale margin decreased by 19 basis points to 3.32% for the first quarter of 2018.  Of the current quarter’s mortgage production, 68% related to purchase activity, compared to 67% for both the prior quarter and the same period in the prior year.

Gain on loan sales decreased by $2.5 million from the prior quarter, reflecting a lower level of portfolio loan sales compared to the prior quarter. 

Other income increased by $4.6 million from the prior quarter, driven primarily by higher debt capital market swap fee revenue and higher gains related to the fair value change of the debt capital market swap derivatives.

Non-interest Expense
Non-interest expense was $186.1 million for the first quarter of 2018, down $6.7 million from the prior quarter level.  This decrease was driven primarily by lower salaries and benefits expenses, partially offset by higher FDIC assessments.  In addition, fourth quarter 2017 expenses included $3.2 million related to employee profit sharing and $2.0 million for charitable donations, driven by the impact of the Tax Act.

Provision for Income Taxes
Provision for income taxes was $24.4 million for the first quarter of 2018, up $20.9 million compared to $3.5 million in the prior quarter.  This increase was primarily attributable to the inclusion of a $26.9 million net benefit to the provision for income taxes in the fourth quarter of 2017, related to the revaluation of the net deferred tax liability and amortization of tax credit investments associated with the passage of the Tax Act, partially offset by the non-deductibility of certain executive compensation.  The first quarter of 2018 provision for income taxes, relative to other prior periods, benefited from a lower corporate tax rate as a result of the Tax Act.   

Capital
As of March 31, 2018, the Company’s tangible book value per common share¹ was $9.97, compared to $9.98 in the prior quarter.  During the first quarter of 2018, the Company increased its quarterly cash dividend by 11.1% to $0.20 per common share.

The Company’s estimated total risk-based capital ratio was 14.0% and its estimated Tier 1 common to risk weighted assets ratio was 11.0% as of March 31, 2018.  The Company remains above current “well-capitalized” regulatory minimums.  The regulatory capital ratios as of March 31, 2018 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 useful 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, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017
Total shareholders' equity		$	4,013,882			$	4,014,786			$	3,985,260			$	3,958,845			$	3,931,150
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		28,589				30,130				31,819				33,508				35,197
Tangible common shareholders' equity		$	2,197,642			$	2,197,005			$	2,165,790			$	2,137,686			$	2,108,302
Total assets		$	25,875,643			$	25,741,439			$	25,695,663			$	25,257,784			$	24,861,458
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		28,589				30,130				31,819				33,508				35,197
Tangible assets		$	24,059,403			$	23,923,658			$	23,876,193			$	23,436,625			$	23,038,610
Common shares outstanding at period end		220,461				220,149				220,225				220,205				220,349
Total shareholders' equity to total assets ratio		15.51		%		15.60		%		15.51		%		15.67		%		15.81		%
Tangible common equity ratio		9.13		%		9.18		%		9.07		%		9.12		%		9.15		%
Book value per common share		$	18.21			$	18.24			$	18.10			$	17.98			$	17.84
Tangible book value per common share		$	9.97			$	9.98			$	9.83			$	9.71			$	9.57

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 umpquabank.com.

Earnings Conference Call Information
The Company will host its first quarter 2018 earnings conference call on Thursday, April 19, 2018, 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 2018 financial results.  There will be a live question-and-answer session following the presentation.  To join the call, please dial (800) 839-7875 ten minutes prior to the start time and enter conference ID: 8312792.  A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 8312792.  The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at umpquabank.com.

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 corporate initiatives and the credit discount accretion related to loans acquired from Sterling.  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; the effect of interest rate increases on the cost of deposits; 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 ability to effectively manage problem credits; our ability 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, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				Seq.  Quarter			Year  over  Year
Interest income:
Loans and leases		$	227,738			$	223,206			$	223,321			$	212,998			$	205,996			2	%		11	%
Interest and dividends on investments:
Taxable		15,699				14,857				13,979				15,220				13,931				6	%		13	%
Exempt from federal income tax		2,128				2,121				2,125				2,237				2,242				0	%		(5	)%
Dividends		468				386				357				360				388				21	%		21	%
Temporary investments and interest bearing deposits		1,164				1,565				934				324				1,557				(26	)%		(25	)%
Total interest income		247,197				242,135				240,716				231,139				224,114				2	%		10	%
Interest expense:
Deposits		15,610				13,241				12,052				10,641				9,648				18	%		62	%
Repurchase agreements and federal funds purchased		63				43				81				321				30				47	%		110	%
Term debt		3,361				3,496				3,491				3,662				3,510				(4	)%		(4	)%
Junior subordinated debentures		4,932				4,734				4,628				4,437				4,201				4	%		17	%
Total interest expense		23,966				21,514				20,252				19,061				17,389				11	%		38	%
Net interest income		223,231				220,621				220,464				212,078				206,725				1	%		8	%
Provision for loan and lease losses		13,656				12,928				11,997				10,657				11,672				6	%		17	%
Non-interest income:
Service charges on deposits		14,995				15,413				15,849				15,478				14,729				(3	)%		2	%
Brokerage revenue		4,194				4,226				3,832				3,903				4,122				(1	)%		2	%
Residential mortgage banking revenue, net		38,438				42,118				33,430				33,894				26,834				(9	)%		43	%
(Loss) gain on investment securities, net		—				—				(6		)		35				(2		)		0	%		(100	)%
Gain on loan sales		1,230				3,688				7,969				3,310				1,754				(67	)%		(30	)%
Loss on junior subordinated debentures carried at fair value		—				(10,010		)		(1,590		)		(1,572		)		(1,555		)		(100	)%		(100	)%
BOLI income		2,070				2,015				2,041				2,089				2,069				3	%		0	%
Other income		17,640				13,000				13,877				13,982				12,274				36	%		44	%
Total non-interest income		78,567				70,450				75,402				71,119				60,225				12	%		30	%
Non-interest expense:
Salaries and employee benefits		106,551				114,414				108,732				108,561				106,473				(7	)%		0	%
Occupancy and equipment, net		38,661				37,269				37,648				36,955				38,673				4	%		0	%
Intangible amortization		1,541				1,689				1,689				1,689				1,689				(9	)%		(9	)%
FDIC assessments		4,480				2,075				4,405				4,447				4,087				116	%		10	%
(Gain) loss on other real estate owned, net		(38		)		(83		)		(99		)		(457		)		82				(54	)%		(146	)%
Merger related expenses		—				—				6,664				1,640				1,020				0	%		(100	)%
Other expense		34,918				37,422				29,315				31,186				30,690				(7	)%		14	%
Total non-interest expense		186,113				192,786				188,354				184,021				182,714				(3	)%		2	%
Income before provision for income taxes		102,029				85,357				95,515				88,519				72,564				20	%		41	%
Provision for income taxes		24,360				3,486				34,182				31,707				26,561				599	%		(8	)%
Net income		77,669				81,871				61,333				56,812				46,003				(5	)%		69	%
Dividends and undistributed earnings allocated to participating securities		6				16				14				14				12				(63	)%		(50	)%
Net earnings available to common shareholders		$	77,663			$	81,855			$	61,319			$	56,798			$	45,991			(5	)%		69	%
Weighted average basic shares outstanding		220,370				220,194				220,215				220,310				220,287				0	%		0	%
Weighted average diluted shares outstanding		220,825				220,873				220,755				220,753				220,779				0	%		0	%
Earnings per common share – basic		$	0.35			$	0.37			$	0.28			$	0.26			$	0.21			(5	)%		67	%
Earnings per common share – diluted		$	0.35			$	0.37			$	0.28			$	0.26			$	0.21			(5	)%		67	%

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																						% Change
(In thousands, except per share data)		Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				Seq.  Quarter			Year  over  Year
Assets:
Cash and due from banks		$	304,681			$	330,856			$	304,760			$	320,027			$	262,655			(8	)%		16	%
Interest bearing cash and temporary investments		264,508				303,424				540,806				295,937				421,991				(13	)%		(37	)%
Investment securities:
Trading, at fair value		12,362				12,255				11,919				11,467				11,241				1	%		10	%
Available for sale, at fair value		2,998,347				3,065,769				3,047,358				3,132,566				3,243,408				(2	)%		(8	)%
Held to maturity, at amortized cost		3,667				3,803				3,905				4,017				4,121				(4	)%		(11	)%
Loans held for sale		299,739				259,518				417,470				451,350				372,073				15	%		(19	)%
Loans and leases		19,314,589				19,080,184				18,677,762				18,321,142				17,829,638				1	%		8	%
Allowance for loan and lease losses		(141,933		)		(140,608		)		(139,503		)		(136,867		)		(136,292		)		1	%		4	%
Loans and leases, net		19,172,656				18,939,576				18,538,259				18,184,275				17,693,346				1	%		8	%
Restricted equity securities		43,501				43,508				45,509				45,511				45,522				0	%		(4	)%
Premises and equipment, net		259,354				269,182				276,316				288,853				293,133				(4	)%		(12	)%
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651				0	%		0	%
Other intangible assets, net		28,589				30,130				31,819				33,508				35,197				(5	)%		(19	)%
Residential mortgage servicing rights, at fair value		164,760				153,151				141,225				141,832				142,344				8	%		16	%
Other real estate owned		13,055				11,734				4,160				4,804				6,518				11	%		100	%
Bank owned life insurance		307,745				306,864				305,572				303,894				301,777				0	%		2	%
Deferred tax assets, net		—				—				—				—				8,464				0	%		(100	)%
Other assets		215,028				224,018				238,934				252,092				232,017				(4	)%		(7	)%
Total assets		$	25,875,643			$	25,741,439			$	25,695,663			$	25,257,784			$	24,861,458			1	%		4	%
Liabilities:
Deposits		$	20,106,856			$	19,948,300			$	19,851,910			$	19,459,950			$	19,167,293			1	%		5	%
Securities sold under agreements to repurchase		291,984				294,299				321,542				330,189				304,280				(1	)%		(4	)%
Term debt		801,868				802,357				852,306				852,219				852,308				0	%		(6	)%
Junior subordinated debentures, at fair value		278,410				277,155				266,875				265,423				263,605				0	%		6	%
Junior subordinated debentures, at amortized cost		88,895				100,609				100,690				100,770				100,851				(12	)%		(12	)%
Deferred tax liability, net		39,277				37,503				51,423				34,296				—				5	%		100	%
Other liabilities		254,471				266,430				265,657				256,092				241,971				(4	)%		5	%
Total liabilities		21,861,761				21,726,653				21,710,403				21,298,939				20,930,308				1	%		4	%
Shareholders' equity:
Common stock		3,515,506				3,517,258				3,516,558				3,514,094				3,516,537				0	%		0	%
Retained earnings		546,330				522,520				476,226				454,802				433,417				5	%		26	%
Accumulated other comprehensive loss		(47,954		)		(24,992		)		(7,524		)		(10,051		)		(18,804		)		92	%		155	%
Total shareholders' equity		4,013,882				4,014,786				3,985,260				3,958,845				3,931,150				0	%		2	%
Total liabilities and shareholders' equity		$	25,875,643			$	25,741,439			$	25,695,663			$	25,257,784			$	24,861,458			1	%		4	%
Common shares outstanding at period end		220,461				220,149				220,225				220,205				220,349				0	%		0	%
Book value per common share		$	18.21			$	18.24			$	18.10			$	17.98			$	17.84			0	%		2	%
Tangible book value per common share		$	9.97			$	9.98			$	9.83			$	9.71			$	9.57			0	%		4	%
Tangible equity - common		$	2,197,642			$	2,197,005			$	2,165,790			$	2,137,686			$	2,108,302			0	%		4	%
Tangible common equity to tangible assets		9.13		%		9.18		%		9.07		%		9.12		%		9.15		%		(0.05	)		(0.02	)

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
(Dollars in thousands)		Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net		$	3,526,221			$	3,491,137			$	3,475,243			$	3,401,679			$	3,410,914			1	%		3	%
Owner occupied term, net		2,476,287				2,488,251				2,467,995				2,593,395				2,584,183				0	%		(4	)%
Multifamily, net		3,131,275				3,087,792				2,993,203				2,964,851				2,885,164				1	%		9	%
Commercial construction, net		522,680				540,707				521,666				464,690				471,007				(3	)%		11	%
Residential development, net		179,871				165,865				186,400				165,956				145,479				8	%		24	%
Commercial:
Term, net		2,025,213				1,944,987				1,819,664				1,686,597				1,620,311				4	%		25	%
Lines of credit and other, net		1,147,028				1,166,173				1,134,045				1,153,409				1,114,160				(2	)%		3	%
Leases and equipment finance, net		1,228,709				1,167,503				1,137,732				1,082,651				1,000,376				5	%		23	%
Residential real estate:
Mortgage, net		3,283,945				3,192,185				3,094,361				3,021,331				2,916,924				3	%		13	%
Home equity lines and loans, net		1,107,822				1,103,297				1,079,931				1,056,848				1,015,138				0	%		9	%
Consumer and other, net		685,538				732,287				767,522				729,735				665,982				(6	)%		3	%
Total, net of deferred fees and costs		$	19,314,589			$	19,080,184			$	18,677,762			$	18,321,142			$	17,829,638			1	%		8	%
Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net		18		%		18		%		19		%		19		%		19		%
Owner occupied term, net		13		%		13		%		13		%		14		%		14		%
Multifamily, net		16		%		16		%		16		%		16		%		16		%
Commercial construction, net		3		%		3		%		3		%		3		%		3		%
Residential development, net		1		%		1		%		1		%		1		%		1		%
Commercial:
Term, net		10		%		10		%		10		%		9		%		9		%
Lines of credit and other, net		6		%		6		%		6		%		6		%		6		%
Leases and equipment finance, net		6		%		6		%		6		%		6		%		6		%
Residential real estate:
Mortgage, net		17		%		17		%		16		%		16		%		16		%
Home equity lines and loans, net		6		%		6		%		6		%		6		%		6		%
Consumer and other, net		4		%		4		%		4		%		4		%		4		%
Total		100		%		100		%		100		%		100		%		100		%

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)		Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Deposits:
Demand, non-interest bearing		$	6,699,399			$	6,505,628			$	6,571,471			$	6,112,480			$	6,021,585			3	%		11	%
Demand, interest bearing		2,354,873				2,384,133				2,394,240				2,371,386				2,327,226				(1	)%		1	%
Money market		6,546,704				7,037,891				6,700,261				6,755,707				6,784,442				(7	)%		(4	)%
Savings		1,482,560				1,446,860				1,444,801				1,427,677				1,400,330				2	%		6	%
Time		3,023,320				2,573,788				2,741,137				2,792,700				2,633,710				17	%		15	%
Total		$	20,106,856			$	19,948,300			$	19,851,910			$	19,459,950			$	19,167,293			1	%		5	%
Total core deposits (1)		$	18,007,169			$	18,263,802			$	18,005,730			$	17,561,956			$	17,427,832			(1	)%		3	%
Deposit mix:
Demand, non-interest bearing		33		%		33		%		33		%		32		%		31		%
Demand, interest bearing		12		%		12		%		12		%		12		%		12		%
Money market		33		%		35		%		34		%		35		%		36		%
Savings		7		%		7		%		7		%		7		%		7		%
Time		15		%		13		%		14		%		14		%		14		%
Total		100		%		100		%		100		%		100		%		100		%
Number of open accounts:
Demand, non-interest bearing		399,721				397,427				394,755				389,767				385,859
Demand, interest bearing		78,181				78,853				79,899				80,594				81,570
Money market		54,752				55,175				55,659				55,795				55,903
Savings		162,841				162,453				162,556				161,369				160,323
Time		48,529				46,861				47,129				47,339				47,365
Total		744,024				740,769				739,998				734,864				731,020
Average balance per account:
Demand, non-interest bearing		$	16.8			$	16.4			$	16.6			$	15.7			$	15.6
Demand, interest bearing		30.1				30.2				30.0				29.4				28.5
Money market		119.6				127.6				120.4				121.1				121.4
Savings		9.1				8.9				8.9				8.8				8.7
Time		62.3				54.9				58.2				59.0				55.6
Total		$	27.0			$	26.9			$	26.8			$	26.5			$	26.2

⁽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, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				Seq. Quarter			Year over Year
Non-performing assets:
Loans and leases on non-accrual status		$	45,775			$	51,465			$	44,573			$	26,566			$	28,915			(11	)%		58	%
Loans and leases past due 90+ days and accruing (1)		25,478				30,994				29,073				27,252				23,421				(18	)%		9	%
Total non-performing loans and leases		71,253				82,459				73,646				53,818				52,336				(14	)%		36	%
Other real estate owned		13,055				11,734				4,160				4,804				6,518				11	%		100	%
Total non-performing assets		$	84,308			$	94,193			$	77,806			$	58,622			$	58,854			(10	)%		43	%
Performing restructured loans and leases		$	31,659			$	32,157			$	45,813			$	52,861			$	43,029			(2	)%		(26	)%
Loans and leases past due 31-89 days		$	38,650			$	43,870			$	32,251			$	31,153			$	49,530			(12	)%		(22	)%
Loans and leases past due 31-89 days to total loans and leases		0.20		%		0.23		%		0.17		%		0.17		%		0.28		%
Non-performing loans and leases to total loans and leases (1)		0.37		%		0.43		%		0.39		%		0.29		%		0.29		%
Non-performing assets to total assets(1)		0.33		%		0.37		%		0.30		%		0.23		%		0.24		%

⁽¹⁾  Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $6.3 million, $12.4 million, $12.3 million, $16.3 million, and $5.3 million at March 31,2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				Seq. Quarter			Year over Year
Allowance for loan and lease losses:
Balance beginning of period		$	140,608			$	139,503			$	136,867			$	136,292			$	133,984
Provision for loan and lease losses		13,656				12,928				11,997				10,657				11,672				6	%		17	%
Charge-offs		(15,812		)		(15,751		)		(13,222		)		(13,944		)		(13,002		)		0	%		22	%
Recoveries		3,481				3,928				3,861				3,862				3,638				(11	)%		(4	)%
Net charge-offs		(12,331		)		(11,823		)		(9,361		)		(10,082		)		(9,364		)		4	%		32	%
Total allowance for loan and lease losses		141,933				140,608				139,503				136,867				136,292				1	%		4	%
Reserve for unfunded commitments		4,129				3,963				3,932				3,816				3,495				4	%		18	%
Total allowance for credit losses		$	146,062			$	144,571			$	143,435			$	140,683			$	139,787			1	%		4	%
Net charge-offs to average loans and leases (annualized)		0.26		%		0.25		%		0.20		%		0.22		%		0.22		%
Recoveries to gross charge-offs		22.01		%		24.94		%		29.20		%		27.70		%		27.98		%
Allowance for loan and lease losses to loans and leases		0.73		%		0.74		%		0.75		%		0.75		%		0.76		%
Allowance for credit losses to loans and leases		0.76		%		0.76		%		0.77		%		0.77		%		0.78		%

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Quarter Ended															% Change
		Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Seq. Quarter			Year over  Year
Average Rates:
Yield on loans and leases		4.75	%		4.65	%		4.70	%		4.67	%		4.65	%		0.10			0.10
Yield on loans held for sale		4.21	%		3.99	%		3.89	%		3.26	%		3.86	%		0.22			0.35
Yield on taxable investments		2.31	%		2.17	%		2.00	%		2.07	%		2.10	%		0.14			0.21
Yield on tax-exempt investments (1)		3.68	%		4.49	%		4.59	%		4.64	%		4.76	%		(0.81	)		(1.08	)
Yield on interest bearing cash and temporary investments		1.55	%		1.22	%		1.47	%		1.03	%		0.79	%		0.33			0.76
Total yield on earning assets (1)		4.39	%		4.26	%		4.30	%		4.26	%		4.18	%		0.13			0.21
Cost of interest bearing deposits		0.47	%		0.40	%		0.36	%		0.33	%		0.30	%		0.07			0.17
Cost of securities sold under agreements
to repurchase and fed funds purchased		0.08	%		0.06	%		0.10	%		0.32	%		0.04	%		0.02			0.04
Cost of term debt		1.70	%		1.67	%		1.63	%		1.72	%		1.67	%		0.03			0.03
Cost of junior subordinated debentures		5.36	%		5.11	%		5.02	%		4.88	%		4.70	%		0.25			0.66
Total cost of interest bearing liabilities		0.65	%		0.58	%		0.55	%		0.52	%		0.48	%		0.07			0.17
Net interest spread (1)		3.74	%		3.68	%		3.75	%		3.74	%		3.70	%		0.06			0.04
Net interest margin (1)		3.96	%		3.88	%		3.94	%		3.91	%		3.85	%		0.08			0.11
Performance Ratios:
Return on average assets		1.23	%		1.27	%		0.96	%		0.92	%		0.75	%		(0.04	)		0.48
Return on average tangible assets		1.32	%		1.36	%		1.04	%		0.99	%		0.81	%		(0.04	)		0.51
Return on average common equity		7.84	%		8.12	%		6.10	%		5.76	%		4.74	%		(0.28	)		3.10
Return on average tangible common equity		14.30	%		14.90	%		11.23	%		10.67	%		8.83	%		(0.60	)		5.47
Efficiency ratio – Consolidated		61.56	%		65.99	%		63.43	%		64.71	%		68.15	%		(4.43	)		(6.59	)
Efficiency ratio – Bank		59.58	%		62.09	%		61.42	%		62.45	%		65.75	%		(2.51	)		(6.17	)

⁽¹⁾ Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate for 2018 and a 35% tax rate for 2017.

Umpqua Holdings Corporation Average Balances
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				Seq. Quarter			Year over Year
Temporary investments and interest bearing cash		$	303,670			$	509,187			$	253,015			$	125,886			$	804,354			(40	)%		(62	)%
Investment securities, taxable		2,793,449				2,804,530				2,867,292				3,008,079				2,723,576				0	%		3	%
Investment securities, tax-exempt		286,603				286,345				281,139				292,553				286,444				0	%		0	%
Loans held for sale		267,231				370,564				420,282				392,183				351,570				(28	)%		(24	)%
Loans and leases		19,150,315				18,765,251				18,537,827				18,024,651				17,598,314				2	%		9	%
Total interest earning assets		22,801,268				22,735,877				22,359,555				21,843,352				21,764,258				0	%		5	%
Goodwill and other intangible assets, net		1,817,068				1,818,730				1,820,394				1,822,032				1,823,799				0	%		0	%
Total assets		25,686,471				25,661,566				25,311,994				24,792,869				24,730,285				0	%		4	%
Non-interest bearing demand deposits		6,450,364				6,611,493				6,354,591				5,951,670				5,883,924				(2	)%		10	%
Interest bearing deposits		13,492,965				13,281,502				13,155,462				13,037,064				13,119,736				2	%		3	%
Total deposits		19,943,329				19,892,995				19,510,053				18,988,734				19,003,660				0	%		5	%
Interest bearing liabilities		14,971,759				14,790,883				14,705,842				14,659,650				14,661,558				1	%		2	%
Shareholders’ equity - common		4,019,822				3,998,609				3,989,868				3,956,777				3,936,340				1	%		2	%
Tangible common equity (1)		2,202,754				2,179,879				2,166,474				2,134,745				2,112,541				1	%		4	%

⁽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, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Mar 31, 2017				Seq. Quarter			Year over Year
Residential mortgage servicing rights:
Residential mortgage loans serviced for others		$	15,442,915			$	15,336,597			$	15,007,942			$	14,797,242			$	14,541,171			1	%		6	%
MSR asset, at fair value		164,760				153,151				141,225				141,832				142,344				8	%		16	%
MSR as % of serviced portfolio		1.07		%		1.00		%		0.94		%		0.96		%		0.98		%		7	%		9	%
Residential mortgage banking revenue:
Origination and sale		$	22,837			$	29,864			$	32,784			$	32,385			$	24,647			(24	)%		(7	)%
Servicing		10,522				10,287				9,879				9,839				9,858				2	%		7	%
Change in fair value of MSR asset		5,079				1,967				(9,233		)		(8,330		)		(7,671		)		158	%		(166	)%
Total		$	38,438			$	42,118			$	33,430			$	33,894			$	26,834			(9	)%		43	%
Closed loan volume:
Closed loan volume - portfolio		$	237,783			$	265,718			$	336,362			$	312,022			$	245,334			(11	)%		(3	)%
Closed loan volume - for-sale		687,226				850,453				891,063				918,200				754,715				(19	)%		(9	)%
Closed loan volume - total		$	925,009			$	1,116,171			$	1,227,425			$	1,230,222			$	1,000,049			(17	)%		(8	)%
Gain on sale margin:
Based on for-sale volume		3.32		%		3.51		%		3.68		%		3.53		%		3.27		%		(0.19	)		0.05

Contacts:

Ron Farnsworth	Bradley Howes
EVP/Chief Financial Officer	SVP/Director of Investor Relations
Umpqua Holdings Corporation	Umpqua Holdings Corporation
503-727-4108	503-727-4226
ronfarnsworth@umpquabank.com	bradhowes@umpquabank.com