UMPQUA HOLDINGS CORP - FORM 8-K - EX-99.1 - PRESS RELEASE ANNOUNCING SECOND QUARTER 2015 FINANCIAL RESULTS

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EX-99.2 - SECOND QUARTER 2015 INVESTOR PRESENTATION - UMPQUA HOLDINGS CORP	umpqq22015earningspresen.htm
8-K - FORM 8-K - UMPQUA HOLDINGS CORP	umpqq220158-k.htm

EXHIBIT 99.1

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

UMPQUA REPORTS SECOND QUARTER 2015 RESULTS

Operating earnings¹ of $68.7 million, or $0.31 per share

Improvement in operating results driven by growth in top-line revenue

Strong loan and lease (gross of sales) growth of $477 million, or 12.3% annualized

PORTLAND, Ore. – July 15, 2015 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings available to common shareholders of $54.7 million for the second quarter of 2015, an increase compared to $47.0 million for the first quarter of 2015 and $17.5 million for the second quarter of 2014. Earnings per diluted common share were $0.25 for the second quarter of 2015, as compared to $0.21 for the first quarter of 2015 and $0.09 for the second quarter of 2014.

Operating earnings¹, which represent earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, and merger related expenses, net of tax, were $68.7 million for the second quarter of 2015, an increase compared to $56.4 million for the first quarter of 2015 and $54.2 million for the second quarter of 2014. Operating earnings per diluted common share were $0.31 for the second quarter of 2015, as compared to $0.26 for the first quarter of 2015 and $0.27 for the second quarter of 2014.

“Our second quarter results demonstrated the strength of Umpqua’s value proposition, of competing with more than price, and the successes we have experienced with the integration of Sterling,” said Ray Davis, President and CEO of Umpqua Holdings Corporation. “This is evident by our double-digit annualized loan growth, increased top-line revenue, and further synergy realization, which contributed to a decrease in our core operating expense run-rate. Looking forward, we anticipate realizing the remaining expense synergies over the next several months.”

Highlights (as compared to the prior quarter):


•	Second quarter of 2015 operating earnings¹ increased to $68.7 million:


◦	Net interest income increased by $2.2 million, driven primarily by strong loan growth;


◦	Provision for loan and lease losses decreased by $1.4 million, driven primarily by lower net charge-offs and partially offset by higher provisions related to strong loan growth;


◦	Non-interest income increased by $16.8 million, driven primarily by higher mortgage banking revenue;


◦	Non-interest expense (excluding merger-related expense) increased by $1.1 million, reflecting a $4.9 million increase in variable mortgage banking expenses related to higher mortgage volumes and $1.5

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.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 2

million in severance-related costs. These increases were partially offset by additional merger-related cost synergies realized during the quarter;


•	Strong loan growth, seasonal decline in deposits:


◦	Loans and leases (gross of sales) grew by $476.9 million, or 12.3% annualized, partially offset by loan sales of $51.7 million, for net growth of $425.2 million, or 10.9% annualized;


◦	Deposits decreased by $77.5 million, primarily due to seasonal outflows related to tax payments;


•	Prudently managed capital:


◦	Tangible book value per common share¹ increased to $8.92, from $8.88;


◦	Under Basel III rules, estimated total risk-based capital ratio of 14.4% and estimated Tier 1 common to risk weighted assets ratio of 11.0%;


◦	Declared a dividend of $0.15 per common share; and


◦	Repurchased 360,000 shares of common stock, for a total of $6.4 million.

For the six months ended June 30, 2015, the Company reported net earnings available to common shareholders of $101.7 million, or $0.46 per diluted common share, as compared to $36.0 million, or $0.23 per diluted common share, for the six months ended June 30, 2014. For the six months ended June 30, 2015, operating earnings¹were $125.1 million, or $0.57 per diluted common share, as compared to $78.1 million, or $0.50 per diluted common share, for the six months ended June 30, 2014.

Balance Sheet

Total consolidated assets were $22.8 billion as of June 30, 2015, compared to $23.0 billion as of March 31, 2015 and $22.0 billion as of June 30, 2014. Including secured off-balance sheet lines of credit, the Company had total available liquidity of $7.2 billion as of June 30, 2015, representing 32% of total assets and 42% of total deposits.

Gross loans and leases were $16.0 billion as of June 30, 2015, an increase of $425.2 million, or 10.9% annualized, from $15.5 billion as of March 31, 2015. During the second quarter of 2015, the Company sold $51.7 million of portfolio residential mortgage loans. Excluding the impact of these sales, gross loan growth was $476.9 million, or 12.3% annualized.

Total deposits were $17.1 billion as of June 30, 2015, a decrease of $77.5 million from $17.2 billion as of March 31, 2015. This decrease was primarily attributable to seasonal deposit outflows related to tax payments.

Net Interest Income

Net interest income was $218.1 million for the second quarter of 2015, up $2.2 million from the prior quarter and up $5.9 million from the same period in the prior year. The increase from the prior quarter was primarily driven by strong loan growth and one additional day in the quarter, partially offset by a 3 basis point decline in net interest margin. Net interest income for the second quarter of 2015 included $16.1 million in interest income arising from the accretion of the credit discount recorded on loans acquired from Sterling, as compared to $15.2 million in the prior quarter.

The Company’s net interest margin was 4.50% for the second quarter of 2015, down from 4.53% for the first quarter of 2015 and from 5.01% for the second quarter of 2014. The decrease from the prior quarter was primarily driven by a lower average yield on interest earning assets.

Credit Quality

Under purchase accounting rules, 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 losses, or its related allowance coverage ratios, but should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.

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.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

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Loans acquired with significant 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 second quarter of 2015, the Company reported $16.1 million of accretion from the Sterling credit discount in interest income. As of June 30, 2015, the purchased non-credit impaired loans had approximately $94.4 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 $57.8 million of remaining total discount.

The allowance for loan and lease losses was $127.1 million, or 0.80% of loans and leases, as of June 30, 2015. To provide better comparability to prior periods, this pro-forma ratio would have been approximately 1.7% after grossing up the allowance for loan and lease losses and the loans and leases by the amount of the credit mark remaining as of quarter-end. This compares to a pro-forma ratio of approximately 1.8% as of March 31, 2015.

The provision for loan and lease losses was $11.3 million for the second quarter of 2015, a decrease of $1.4 million from the prior quarter. This decrease was primarily driven by a lower level of net charge-offs, partially offset by an increase in provisions related to new loan growth, which was significantly stronger than the prior quarter. Charge-offs, net of recoveries, decreased to $4.3 million for the second quarter of 2015, as compared to $8.7 million in the prior quarter.

Non-performing assets decreased to $70.1 million, or 0.31% of total assets, as of June 30, 2015, as compared to $82.7 million, or 0.36% of total assets, as of March 31, 2015. Loans past due 31 to 89 days were $25.6 million, or 0.16% of loans and leases, as of June 30, 2015, as compared to $20.5 million, or 0.13% of loans and leases, as of March 31, 2015. Restructured loans on accrual status were $37.0 million as of June 30, 2015, as compared to $60.9 million as of March 31, 2015.

Non-interest Income

Total non-interest income was $80.4 million for the second quarter of 2015, up $16.8 million from the prior quarter and $34.9 million from the same period in the prior year. The increase from the prior quarter was primarily driven by higher mortgage banking revenue.

Residential mortgage banking revenue, which includes revenue from the origination and sale of residential mortgage loans, revenue from the servicing of residential mortgage loans and changes to the fair value of the residential mortgage servicing rights (“MSR”) asset, increased by $11.8 million from the prior quarter. Revenue from the origination and sale of residential mortgages increased by $2.2 million from the prior quarter, driven by an increase in mortgage originations, and partially offset by a decrease in gain on sale margin. The change in fair value related to the MSR was a loss of $0.4 million for the second quarter of 2015, as compared to a loss of $9.7 million for the prior quarter, reflecting the linked quarter increase in interest rates.

The Company’s gain on sale margin was 3.38% for the second quarter of 2015, down from 3.65% in the prior quarter. This decrease was driven by a larger mix of purchase mortgage production, which traditionally carries a lower gain on sale margin than refinance mortgage production. Of the current quarter’s mortgage production, 59% related to purchase activity, as compared to 45% for the prior quarter and 74% for the same period in the prior year.

As of June 30, 2015, the Company serviced $12.3 billion of residential mortgage loans for others, and its related MSR asset was valued at $127.2 million, or 1.03% of the total serviced portfolio principal balance. This compares to $11.9 billion of residential mortgage loans serviced for others as of March 31, 2015, with a related MSR asset of $116.4 million, or 0.98% of the total serviced portfolio principal balance. As of June 30, 2014, the Company serviced $10.8 billion of residential mortgage loans for others, and its related MSR asset was valued at $114.2 million, or 1.05% of the total serviced portfolio principal balance.

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.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

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Non-interest Expense

Non-interest expense was $201.9 million for the second quarter of 2015, which included $21.8 million of merger-related expenses. This compares to $193.1 million, including $14.1 million of merger-related expenses, for the first quarter of 2015 and $214.1 million, including $57.5 million of merger-related expenses, for the second quarter of 2014.

Excluding merger-related expenses, non-interest expense increased by $1.1 million from the prior quarter. This increase was primarily driven by a $4.9 million increase in variable mortgage banking expenses, driven by higher mortgage volume, and a $1.5 million expense related to severance costs. These were partially offset by an increase in merger cost synergies and a lower loss on other real estate owned property.

The second quarter of 2015 non-interest expense run-rate does not reflect the full benefit of the anticipated Sterling merger cost synergies. The Company remains on track with the integration of Sterling, with cost synergies progressing towards the previously announced target of $87 million (annualized), which is expected to be realized over the next several months.

Income taxes

The Company recorded a provision for income taxes of $30.6 million for the second quarter of 2015, representing an effective tax rate of 35.8% for the quarter, as compared to $26.6 million, with an effective tax rate of 36.1%, for the first quarter of 2015.

Capital

As of June 30, 2015, the Company’s tangible book value per common share¹ was $8.92 and its ratio of tangible common equity to tangible assets¹ was 9.38%, as compared to $8.88 and 9.28%, respectively, in the prior quarter.

During the second quarter of 2015, the Company repurchased 360,000 shares of common stock, for a total of $6.4 million. The Company may repurchase up to 11.7 million of additional shares under the current stock repurchase plan, which was recently extended to July 31, 2017 by the Company's Board of Directors.

Based on Basel III rules, as of June 30, 2015, the Company’s estimated total risk-based capital ratio was 14.4% and its estimated Tier 1 common to risk weighted assets ratio was 11.0%, as compared to 14.6% and 11.1%, respectively, as of March 31, 2015. The Company remains well above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of June 30, 2015 are estimates, pending completion and filing of the Company’s regulatory reports.

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 certain 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.

The Company recognizes gains or losses on its junior subordinated debentures carried at fair value resulting from changes in interest rates and the estimated market credit risk adjusted spread that do not directly correlate with the Company’s operating performance. Also, the Company incurs significant expenses related to the completion and integration of mergers and acquisitions. Additionally, it may recognize goodwill impairment losses that have no direct effect on the Company’s or the Bank’s cash balances, liquidity, or regulatory capital ratios. Lastly, the Company may recognize one-time bargain purchase gains on certain acquisitions that are not reflective of the Company’s on-going earnings power. Accordingly, management believes that our operating results are best measured on a comparative basis excluding the impact of gains or losses on junior subordinated debentures measured at fair value, net of tax, merger-related expenses, net of tax, and other charges related to business combinations such as goodwill impairment charges or bargain purchase gains, net of tax. The Company defines operating earnings as earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, bargain

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.

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July 15, 2015

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purchase gains on acquisitions, net of tax, merger related expenses, net of tax, and goodwill impairment, and we calculate operating earnings per diluted share by dividing operating earnings by the same diluted share total used in determining diluted earnings per common share.

The following table provides the reconciliation of earnings available to common shareholders (GAAP) to operating earnings (non-GAAP), and earnings per diluted common share (GAAP) to operating earnings per diluted share (non-GAAP) for the periods presented:



	Quarter Ended											% Change
(In thousands, except per share data)	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014			Sep 30, 2014		Jun 30, 2014		Seq. Quarter		Year over Year
Net earnings available to common shareholders	$	54,691	$	47,045	$	52,436		$	58,741	$	17,459	16	%	213	%
Adjustments:
Net loss on junior subordinated debentures carried at fair value, net of tax (1)	943		933		953			955		821		1	%	15	%
Merger related expenses, net of tax (1)	13,078		8,449		6,038			5,274		35,926		55	%	(64	)%
Operating earnings	$	68,712	$	56,427	$	59,427		$	64,970	$	54,206	22	%	27	%

Earnings per diluted share:
Earnings available to common shareholders	$	0.25	$	0.21	$	0.24		$	0.27	$	0.09	19	%	178	%
Operating earnings	$	0.31	$	0.26	$	0.27		$	0.30	$	0.27	19	%	15	%

	Six Months Ended				% Change
	Jun 30, 2015		Jun 30, 2014		Year over Year
Net earnings available to common shareholders	$	101,736	$	35,997	183		%
Adjustments:
Net loss on junior subordinated debentures carried at fair value, net of tax (1)	1,876		1,147		64		%
Merger related expenses, net of tax (1)	21,527		40,999		nm
Operating earnings	$	125,139	$	78,143	60		%

Earnings per diluted share:
Earnings available to common shareholders	$	0.46	$	0.23	100		%
Operating earnings	$	0.57	$	0.50	14		%

(1) Income tax effect of pro forma operating earnings adjustments at 40% for tax-deductible items.
nm = not meaningful.

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.

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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)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014
Total shareholders' equity	$	3,804,179		$	3,800,970		$	3,777,626		$	3,749,101		$	3,725,759
Subtract:
Goodwill and other intangible assets, net	1,839,760			1,842,567			1,842,958			1,845,242			1,842,670
Tangible common shareholders' equity	$	1,964,419		$	1,958,403		$	1,934,668		$	1,903,859		$	1,883,089
Total assets	$	22,793,331		$	22,953,158		$	22,609,903		$	22,484,652		$	22,038,928
Subtract:
Goodwill and other intangible assets, net	1,839,760			1,842,567			1,842,958			1,845,242			1,842,670
Tangible assets	$	20,953,571		$	21,110,591		$	20,766,945		$	20,639,410		$	20,196,258
Common shares outstanding at period end	220,280			220,454			220,161			217,262			217,191
Tangible common equity ratio	9.38		%	9.28		%	9.32		%	9.22		%	9.32		%
Tangible book value per common share	$	8.92		$	8.88		$	8.79		$	8.76		$	8.67

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 use of technology, and distinctive banking solutions. Umpqua Bank has locations across Idaho, Washington, Oregon, California and Northern 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. Umpqua Private Bank serves high net worth individuals and nonprofits, providing trust and investment services. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquaholdingscorp.com.

Earnings Conference Call Information

The Company will host its second quarter 2015 earnings conference call on Thursday, July 16, 2015, at 10:00 a.m. PST (1:00 p.m. EST). During the call, the Company will provide an update on recent activities and discuss its second quarter 2015 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (888) 899-5068 ten minutes prior to the start time and enter conference ID: 8688853. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 8688853. The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at www.umpquaholdingscorp.com. A slide presentation to accompany the call will also be posted on the website before the call.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

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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 the integration of the merger with Sterling Financial Corporation; timing and amount of merger-related synergies; and credit discount accretion related to the merger. Specific risks that could cause results to differ from these forward looking statements are Umpqua’s ability to achieve the synergies and earnings accretion contemplated by the Sterling merger; Umpqua’s ability to promptly and effectively integrate the businesses of Sterling and Umpqua. Additional 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, changes in the discounted cash flow model used to determine the fair value of subordinated debentures; prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; material reductions in revenue or material increases in expenses; lack of strategic growth opportunities or our failure to execute on those opportunities; our inability to effectively manage problem credits; certain loan assets becoming ineligible for loss sharing; unanticipated increases in the cost of deposits; the consequences of a phase-out of junior subordinated debentures from Tier 1 capital; the diversion of management time on issues related to merger integration; changes in laws or regulations; and changes in general economic conditions.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

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Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)

	Quarter Ended															% Change
(In thousands, except per share data)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	217,828		$	214,663		$	226,853		$	223,972		$	208,992		1	%	4	%
Interest and dividends on investments:
Taxable	11,268			11,551			11,629			12,136			12,728			(2	)%	(11	)%
Exempt from federal income tax	2,657			2,720			2,746			2,790			2,697			(2	)%	(1	)%
Dividends	168			101			66			81			128			66	%	31	%
Temporary investments & interest bearing deposits	549			825			857			544			422			(33	)%	30	%
Total interest income	232,470			229,860			242,151			239,523			224,967			1	%	3	%
Interest expense:
Deposits	7,381			7,103			7,119			6,773			6,075			4	%	21	%
Repurchase agreements	43			48			48			54			203			(10	)%	(79	)%
Term debt	3,492			3,464			3,570			3,586			3,364			1	%	4	%
Junior subordinated debentures	3,406			3,337			3,399			3,394			3,066			2	%	11	%
Total interest expense	14,322			13,952			14,136			13,807			12,708			3	%	13	%
Net interest income	218,148			215,908			228,015			225,716			212,259			1	%	3	%
Provision for loan and lease losses	11,254			12,637			5,241			14,333			14,696			(11	)%	(23	)%
Non-interest income:
Service charges	14,825			14,296			15,472			16,090			15,371			4	%	(4	)%
Brokerage revenue	4,648			4,769			4,960			4,882			4,566			(3	)%	2	%
Residential mortgage banking revenue, net	40,014			28,227			16,489			25,996			24,341			42	%	64	%
Gain on investment securities, net	19			116			1,026			902			976			(84	)%	(98	)%
Gain on loan sales	8,711			6,728			5,730			8,309			557			29	%	nm
Loss on junior subordinated debentures carried at fair value	(1,572		)	(1,555		)	(1,589		)	(1,590		)	(1,369		)	1	%	15	%
Change in FDIC indemnification asset	(1,199		)	(1,286		)	(1,982		)	(2,728		)	(5,601		)	(7	)%	(79	)%
BOLI income	2,023			2,781			1,971			2,161			1,967			(27	)%	3	%
Other income	12,930			9,519			8,228			8,143			4,658			36	%	178	%
Total non-interest income	80,399			63,595			50,305			62,165			45,466			26	%	77	%
Non-interest expense:
Salaries and employee benefits	110,786			107,923			104,039			102,564			95,560			3	%	16	%
Occupancy and equipment, net	34,868			32,150			32,987			33,029			28,746			8	%	21	%
Intangible amortization	2,807			2,806			3,102			3,103			2,808			0	%	0	%
FDIC assessments	3,155			3,214			3,522			3,038			2,575			(2	)%	23	%
Loss on other real estate owned, net	480			1,814			3,609			313			258			(74	)%	86	%
Merger related expenses	21,797			14,082			10,171			8,632			57,531			55	%	(62	)%
Other expense	28,004			31,109			33,426			31,879			26,653			(10	)%	5	%
Total non-interest expense	201,897			193,098			190,856			182,558			214,131			5	%	(6	)%
Income before provision for income taxes	85,396			73,768			82,223			90,990			28,898			16	%	196	%
Provision for income taxes	30,612			26,639			29,641			32,107			11,356			15	%	170	%
Net income	54,784			47,129			52,582			58,883			17,542			16	%	212	%
Dividends and undistributed earnings allocated to participating securities	93			84			146			142			83			11	%	12	%
Net earnings available to common shareholders	$	54,691		$	47,045		$	52,436		$	58,741		$	17,459		16	%	213	%

Weighted average basic shares outstanding	220,463			220,349			218,963			217,245			196,312			0	%	12	%
Weighted average diluted shares outstanding	221,150			221,051			219,974			218,941			197,638			0	%	12	%
Earnings per common share – basic	$	0.25		$	0.21		$	0.24		$	0.27		$	0.09		19	%	178	%
Earnings per common share – diluted	$	0.25		$	0.21		$	0.24		$	0.27		$	0.09		19	%	178	%
nm = not meaningful

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July 15, 2015

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Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)

	Six Months Ended						% Change
(In thousands, except per share data)	Jun 30, 2015			Jun 30, 2014			Year over Year
Interest income
Loans and leases	$	432,491		$	312,978		38	%
Interest and dividends on investments:
Taxable	22,819			22,019			4	%
Exempt from federal income tax	5,377			4,809			12	%
Dividends	269			178			51	%
Temporary investments & interest bearing deposits	1,374			863			59	%
Total interest income	462,330			340,847			36	%
Interest expense
Deposits	14,484			9,923			46	%
Repurchase agreements	91			244			(63	)%
Term debt	6,956			5,637			23	%
Junior subordinated debentures	6,743			4,946			36	%
Total interest expense	28,274			20,750			36	%
Net interest income	434,056			320,097			36	%
Provision for loan and lease losses	23,891			20,667			16	%
Non-interest income
Service charges	29,121			23,138			26	%
Brokerage revenue	9,417			8,291			14	%
Residential mortgage banking revenue, net	68,241			34,780			96	%
Gain on investment securities, net	135			976			(86	)%
Gain on loan sales	15,439			1,074			nm
Loss on junior subordinated debentures carried at fair value	(3,127		)	(1,911		)	64	%
Change in FDIC indemnification asset	(2,485		)	(10,441		)	(76	)%
BOLI Income	4,804			2,703			78	%
Other income	22,449			10,094			122	%
Total non-interest income	143,994			68,704			110	%
Non-interest expense
Salaries and employee benefits	218,709			148,778			47	%
Occupancy and equipment, net	67,018			45,247			48	%
Intangible amortization	5,613			4,002			40	%
FDIC assessments	6,369			4,438			44	%
Loss on other real estate owned, net	2,294			194			nm
Merger related expenses	35,879			63,514			(44	)%
Other expense	59,113			44,476			33	%
Total non-interest expense	394,995			310,649			27	%
Income before provision for income taxes	159,164			57,485			177	%
Provision for income taxes	57,251			21,292			169	%
Net income	101,913			36,193			182	%
Dividends and undistributed earnings
allocated to participating securities	177			196			(10	)%
Net earnings available to common shareholders	$	101,736		$	35,997		183	%

Weighted average basic shares outstanding	220,406			154,473			43	%
Weighted average diluted shares outstanding	221,088			155,276			42	%
Earnings per common share – basic	$	0.46		$	0.23		100	%
Earnings per common share – diluted	$	0.46		$	0.23		100	%
nm = not meaningful

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 10



Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)

																% Change
(In thousands, except per share data)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	364,256		$	292,558		$	282,455		$	266,624		$	347,152		25	%	5	%
Interest bearing deposits	515,273			1,087,913			1,322,214			1,176,599			492,739			(53	)%	5	%
Temporary investments	418			403			502			487			529			4	%	(21	)%
Investment securities:
Trading, at fair value	10,005			10,452			9,999			9,727			9,420			(4	)%	6	%
Available for sale, at fair value	2,557,245			2,535,121			2,298,555			2,400,061			2,588,969			1	%	(1	)%
Held to maturity, at amortized cost	4,807			4,953			5,211			5,356			5,519			(3	)%	(13	)%
Loans held for sale	419,704			406,487			286,802			265,800			328,968			3	%	28	%
Loans and leases	15,974,197			15,548,957			15,327,732			15,259,201			15,136,455			3	%	6	%
Allowance for loan and lease losses	(127,071		)	(120,104		)	(116,167		)	(115,635		)	(106,495		)	6	%	19	%
Loans and leases, net	15,847,126			15,428,853			15,211,565			15,143,566			15,029,960			3	%	5	%
Restricted equity securities	46,917			117,218			119,334			120,759			122,194			(60	)%	(62	)%
Premises and equipment, net	331,208			322,925			317,834			314,364			310,407			3	%	7	%
Goodwill	1,788,640			1,788,640			1,786,225			1,785,407			1,779,732			0	%	1	%
Other intangible assets, net	51,120			53,927			56,733			59,835			62,938			(5	)%	(19	)%
Residential mortgage servicing rights, at fair value	127,206			116,365			117,259			118,725			114,192			9	%	11	%
Other real estate owned	23,038			32,064			37,942			34,456			27,982			(28	)%	(18	)%
FDIC indemnification asset	432			1,861			4,417			7,811			11,293			(77	)%	(96	)%
Bank owned life insurance	295,551			294,697			294,296			293,511			292,714			0	%	1	%
Deferred tax assets, net	181,245			198,778			230,442			251,854			260,870			(9	)%	(31	)%
Other assets	229,140			259,943			228,118			229,710			253,350			(12	)%	(10	)%
Total assets	$	22,793,331		$	22,953,158		$	22,609,903		$	22,484,652		$	22,038,928		(1	)%	3	%
Liabilities:
Deposits	$	17,145,046		$	17,222,566		$	16,892,099		$	16,727,610		$	16,323,000		0	%	5	%
Securities sold under agreements to repurchase	325,711			321,202			313,321			339,367			315,025			1	%	3	%
Term debt	889,997			965,675			1,006,395			1,057,140			1,057,915			(8	)%	(16	)%
Junior subordinated debentures, at fair value	252,214			250,652			249,294			247,528			246,077			1	%	2	%
Junior subordinated debentures, at amortized cost	101,415			101,496			101,576			101,657			101,737			0	%	0	%
Other liabilities	274,769			290,597			269,592			262,249			269,415			(5	)%	2	%
Total liabilities	18,989,152			19,152,188			18,832,277			18,735,551			18,313,169			(1	)%	4	%
Shareholders' equity:
Common stock	3,517,557			3,521,201			3,519,316			3,515,621			3,512,507			0	%	0	%
Retained earnings	281,573			260,128			246,242			226,895			200,808			8	%	40	%
Accumulated other comprehensive income (loss)	5,049			19,641			12,068			6,585			12,444			(74	)%	(59	)%
Total shareholders' equity	3,804,179			3,800,970			3,777,626			3,749,101			3,725,759			0	%	2	%
Total liabilities and shareholders' equity	$	22,793,331		$	22,953,158		$	22,609,903		$	22,484,652		$	22,038,928		(1	)%	3	%

Common shares outstanding at period end	220,280			220,454			220,161			217,262			217,191			0	%	1	%
Book value per common share	$	17.27		$	17.24		$	17.16		$	17.26		$	17.15		0	%	1	%
Tangible book value per common share	$	8.92		$	8.88		$	8.79		$	8.76		$	8.67		0	%	3	%
Tangible equity - common	$	1,964,419		$	1,958,403		$	1,934,668		$	1,903,859		$	1,883,089		0	%	4	%
Tangible common equity to tangible assets	9.38		%	9.28		%	9.32		%	9.22		%	9.32		%	1	%	1	%

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 11



Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)

(Dollars in thousands)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			% Change
	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Loans & leases:
Commercial real estate:
Non-owner occupied term, net	$	3,294,359		$	3,303,629		$	3,290,610		$	3,423,453		$	3,517,328		0	%	(6	)%
Owner occupied term, net	2,636,800			2,577,484			2,633,864			2,682,870			2,714,319			2	%	(3	)%
Multifamily, net	2,859,884			2,764,403			2,638,618			2,565,711			2,506,864			3	%	14	%
Commercial construction, net	244,354			238,303			258,722			247,816			264,150			3	%	(7	)%
Residential development, net	76,734			81,160			81,846			76,849			94,857			(5	)%	(19	)%
Commercial:
Term, net	1,374,528			1,411,043			1,396,089			1,427,121			1,400,710			(3	)%	(2	)%
Lines of credit & other, net	981,897			993,814			1,029,620			1,037,278			1,044,376			(1	)%	(6	)%
Leases & equipment finance, net	630,695			570,492			523,114			492,221			463,784			11	%	36	%
Residential real estate:
Mortgage, net	2,533,042			2,330,325			2,233,735			2,102,333			1,976,934			9	%	28	%
Home equity lines & loans, net	882,596			863,269			852,478			836,054			817,391			2	%	8	%
Consumer & other, net	459,308			415,035			389,036			367,495			335,742			11	%	37	%
Total, net of deferred fees and costs	$	15,974,197		$	15,548,957		$	15,327,732		$	15,259,201		$	15,136,455		3	%	6	%

Loan & leases mix:
Commercial real estate:
Non-owner occupied term, net	20		%	20		%	20		%	22		%	23		%
Owner occupied term, net	17		%	17		%	17		%	18		%	18		%
Multifamily, net	17		%	17		%	17		%	17		%	17		%
Commercial construction, net	2		%	2		%	2		%	2		%	2		%
Residential development, net	—		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	9		%	9		%	9		%	9		%	9		%
Lines of credit & other, net	6		%	6		%	7		%	7		%	7		%
Leases & equipment finance, net	4		%	4		%	3		%	3		%	3		%
Residential real estate:
Mortgage, net	16		%	15		%	15		%	14		%	13		%
Home equity lines & loans, net	6		%	6		%	6		%	5		%	5		%
Consumer & other, net	3		%	3		%	3		%	2		%	2		%
Total	100		%	100		%	100		%	100		%	100		%

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 12



Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)

(Dollars in thousands)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			% Change
	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	4,927,526		$	4,930,642		$	4,744,804		$	4,741,897		$	4,363,710		0	%	13	%
Demand, interest bearing	2,090,595			2,085,368			2,054,994			1,942,792			1,869,626			0	%	12	%
Money market	6,374,624			6,287,165			6,113,138			5,998,339			5,973,197			1	%	7	%
Savings	1,058,337			1,022,829			971,185			952,122			912,073			3	%	16	%
Time	2,693,964			2,896,562			3,007,978			3,092,460			3,204,394			(7	)%	(16	)%
Total	$	17,145,046		$	17,222,566		$	16,892,099		$	16,727,610		$	16,323,000		0	%	5	%

Total core deposits (1)	$	15,248,676		$	15,304,001		$	15,126,378		$	14,653,183		$	14,171,946		0	%	8	%

Deposit mix:
Demand, non-interest bearing	29		%	29		%	28		%	28		%	26		%
Demand, interest bearing	12		%	12		%	12		%	12		%	11		%
Money market	37		%	36		%	36		%	36		%	37		%
Savings	6		%	6		%	6		%	6		%	6		%
Time	16		%	17		%	18		%	18		%	20		%
Total	100		%	100		%	100		%	100		%	100		%

Number of open accounts:
Demand, non-interest bearing	367,086			368,701			367,854			366,279			363,378
Demand, interest bearing	90,021			85,082			86,135			87,223			88,162
Money market	58,156			61,991			63,095			63,979			65,216
Savings	152,404			150,989			150,548			150,527			149,877
Time	49,983			52,179			53,530			54,565			56,285
Total	717,650			718,942			721,162			722,573			722,918

Average balance per account:
Demand, non-interest bearing	$	13.4		$	13.4		$	12.9		$	12.9		$	12.3
Demand, interest bearing	23.2			24.5			23.9			22.3			21.2
Money market	109.6			101.4			96.9			93.8			91.6
Savings	6.9			6.8			6.5			6.3			6.1
Time	53.9			55.5			56.2			56.7			56.9
Total	$	23.9		$	24.0		$	23.4		$	23.2		$	22.7

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

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 13



Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)

	Quarter Ended															% Change
(Dollars in thousands)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status	$	33,572		$	40,246		$	52,041		$	42,397		$	48,358		(17	)%	(31	)%
Loans and leases past due 90+ days & accruing	13,529			10,416			7,512			7,416			4,919			30	%	175	%
Total non-performing loans and leases	47,101			50,662			59,553			49,813			53,277			(7	)%	(12	)%
Other real estate owned	23,038			32,064			37,942			34,456			27,982			(28	)%	(18	)%
Total	$	70,139		$	82,726		$	97,495		$	84,269		$	81,259		(15	)%	(14	)%

Performing restructured loans and leases	$	37,023		$	60,896		$	54,836		$	63,507		$	67,464		(39	)%	(45	)%
Loans and leases past due 31-89 days	$	25,553		$	20,488		$	24,659		$	34,025		$	28,913		25	%	(12	)%
Loans and leases past due 31-89 days to total loans and leases	0.16		%	0.13		%	0.16		%	0.22		%	0.19		%
Non-performing loans and leases to total loans and leases	0.29		%	0.33		%	0.39		%	0.33		%	0.35		%
Non-performing assets to total assets	0.31		%	0.36		%	0.43		%	0.37		%	0.37		%

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July 15, 2015

Page 14



Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
	Quarter Ended															% Change
(Dollars in thousands)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Seq. Quarter		Year over Year
Allowance for loan and lease losses:
Balance beginning of period	$	120,104		$	116,167		$	115,635		$	106,495		$	97,029
Provision for loan and lease losses	11,254			12,637			5,241			14,333			14,696			(11	)%	(23	)%
Charge-offs	(7,442		)	(12,545		)	(9,088		)	(7,524		)	(7,332		)	(41	)%	2	%
Recoveries	3,155			3,845			4,379			2,331			2,102			(18	)%	50	%
Net charge-offs	(4,287		)	(8,700		)	(4,709		)	(5,193		)	(5,230		)	(51	)%	(18	)%
Total allowance for loan and lease losses	127,071			120,104			116,167			115,635			106,495			6	%	19	%
Reserve for unfunded commitments	2,864			3,194			3,539			4,388			4,845
Total allowance for credit losses	$	129,935		$	123,298		$	119,706		$	120,023		$	111,340

Net charge-offs to average loans and leases (annualized)	0.11		%	0.23		%	0.12		%	0.14		%	0.15		%
Recoveries to gross charge-offs	42.39		%	30.65		%	48.18		%	30.98		%	28.67		%
Allowance for loan and lease losses to loans and leases	0.80		%	0.77		%	0.76		%	0.76		%	0.70		%
Allowance for credit losses to loans and leases	0.81		%	0.79		%	0.78		%	0.79		%	0.74		%

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July 15, 2015

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Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
	Six Months Ended						% Change
(Dollars in thousands)	Jun 30, 2015			Jun 30, 2014			Year over Year
Allowance for loan and lease losses:
Balance beginning of period	$	116,167		$	95,085
Provision for loan and lease losses	23,891			20,667			16	%
Charge-offs	(19,987		)	(13,566		)	47	%
Recoveries	7,000			4,309			62	%
Net charge-offs	(12,987		)	(9,257		)	40	%
Total allowance for loan and lease losses	127,071			106,495			19	%
Reserve for unfunded commitments	2,864			4,845			(41	)%
Total allowance for credit losses	$	129,935		$	111,340		17	%

Net charge-offs to average loans and leases (annualized)	0.17		%	0.17		%
Recoveries to gross charge-offs	35.02		%	31.76		%
Allowance for loan and lease losses to loans and leases	0.80		%	0.70		%
Allowance for credit losses to loans and leases	0.81		%	0.74		%

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 16



Umpqua Holdings Corporation
Selected Ratios
(Unaudited)

	Quarter Ended										% Change
	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014		Seq. Quarter		Year over Year
Average Rates:
Yield on loans and leases	5.48	%	5.61	%	5.82	%	5.78	%	6.06	%	(0.13	)	(0.58	)
Yield on loans held for sale	3.24	%	3.95	%	4.01	%	3.86	%	4.30	%	(0.71	)	(1.06	)
Yield on taxable investments	1.99	%	2.10	%	2.16	%	2.12	%	2.29	%	(0.11	)	(0.30	)
Yield on tax-exempt investments (1)	5.07	%	5.10	%	5.09	%	5.12	%	5.08	%	(0.03	)	(0.01	)
Yield on temporary investments & interest bearing cash	0.26	%	0.25	%	0.25	%	0.25	%	0.32	%	0.01		(0.06	)
Total yield on earning assets (1)	4.79	%	4.82	%	4.98	%	5.04	%	5.30	%	(0.03	)	(0.51	)

Cost of interest bearing deposits	0.24	%	0.24	%	0.23	%	0.22	%	0.22	%	—		0.02
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.05	%	0.06	%	0.06	%	0.07	%	0.25	%	(0.01	)	(0.20	)
Cost of term debt	1.51	%	1.42	%	1.41	%	1.35	%	1.45	%	0.09		0.06
Cost of junior subordinated debentures	3.88	%	3.86	%	3.86	%	3.87	%	3.87	%	0.02		0.01
Total cost of interest bearing liabilities	0.41	%	0.41	%	0.41	%	0.40	%	0.41	%	—		—

Net interest spread (1)	4.38	%	4.41	%	4.57	%	4.64	%	4.89	%	(0.03	)	(0.51	)
Net interest margin – Consolidated (1)	4.50	%	4.53	%	4.69	%	4.75	%	5.01	%	(0.03	)	(0.51	)
Net interest margin – Bank (1)	4.56	%	4.59	%	4.75	%	4.82	%	5.07	%	(0.03	)	(0.51	)

As reported (GAAP):
Return on average assets	0.96	%	0.84	%	0.92	%	1.05	%	0.35	%	0.12		0.61
Return on average tangible assets	1.05	%	0.92	%	1.00	%	1.14	%	0.38	%	0.13		0.67
Return on average common equity	5.76	%	5.02	%	5.59	%	6.28	%	2.09	%	0.74		3.67
Return on average tangible common equity	11.17	%	9.76	%	11.08	%	12.46	%	4.13	%	1.41		7.04
Efficiency ratio – Consolidated	67.32	%	68.74	%	68.23	%	63.10	%	82.64	%	(1.42	)	(15.32	)
Efficiency ratio – Bank	65.71	%	67.09	%	66.23	%	61.63	%	81.08	%	(1.38	)	(15.37	)

Operating basis (non-GAAP): (2)
Return on average assets	1.21	%	1.01	%	1.04	%	1.16	%	1.08	%	0.20		0.13
Return on average tangible assets	1.32	%	1.10	%	1.13	%	1.26	%	1.18	%	0.22		0.14
Return on average common equity	7.24	%	6.03	%	6.34	%	6.94	%	6.49	%	1.21		0.75
Return on average tangible common equity	14.04	%	11.71	%	12.56	%	13.78	%	12.83	%	2.33		1.21
Efficiency ratio – Consolidated	59.74	%	63.38	%	64.23	%	59.79	%	60.12	%	(3.64	)	(0.38	)
Efficiency ratio – Bank	58.46	%	62.09	%	62.61	%	58.65	%	58.94	%	(3.63	)	(0.48	)

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

(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated

debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger

related expenses, net of tax.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 17



Umpqua Holdings Corporation
Selected Ratios
(Unaudited)

	Six Months Ended				% Change
	Jun 30, 2015		Jun 30, 2014		Year over Year
Average Rates:
Yield on loans and leases	5.54	%	5.83	%	(0.29	)
Yield on loans held for sale	3.53	%	4.28	%	(0.75	)
Yield on taxable investments	2.04	%	2.35	%	(0.31	)
Yield on tax-exempt investments (1)	5.08	%	5.31	%	(0.23	)
Yield on temporary investments & interest bearing cash	0.25	%	0.29	%	(0.04	)
Total yield on earning assets (1)	4.80	%	5.04	%	(0.24	)

Cost of interest bearing deposits	0.24	%	0.23	%	0.01
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.06	%	0.18	%	(0.12	)
Cost of term debt	1.46	%	1.91	%	(0.45	)
Cost of junior subordinated debentures	3.87	%	3.93	%	(0.06	)
Total cost of interest bearing liabilities	0.41	%	0.42	%	(0.01	)

Net interest spread (1)	4.39	%	4.62	%	(0.23	)
Net interest margin – Consolidated (1)	4.51	%	4.74	%	(0.23	)
Net interest margin – Bank (1)	4.58	%	4.80	%	(0.22	)

As reported (GAAP):
Return on average assets	0.90	%	0.46	%	0.44
Return on average tangible assets	0.98	%	0.50	%	0.48
Return on average common equity	5.40	%	2.85	%	2.55
Return on average tangible common equity	10.47	%	5.46	%	5.01
Efficiency ratio – Consolidated	68.01	%	79.39	%	(11.38	)
Efficiency ratio – Bank	66.38	%	77.72	%	(11.34	)

Operating basis (non-GAAP): (2)
Return on average assets	1.11	%	0.99	%	0.12
Return on average tangible assets	1.21	%	1.08	%	0.13
Return on average common equity	6.64	%	6.18	%	0.46
Return on average tangible common equity	12.88	%	11.84	%	1.04
Efficiency ratio – Consolidated	61.50	%	62.85	%	(1.35	)
Efficiency ratio – Bank	60.22	%	61.46	%	(1.24	)

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

(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger related expenses, net of tax.

Umpqua Reports Second Quarter 2015 Results

July 15, 2015

Page 18



Umpqua Holdings Corporation Average Balances
(Unaudited)

	Quarter Ended										% Change
(Dollars in thousands)	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014		Seq. Quarter		Year over Year
Temporary investments & interest bearing cash	$	861,775	$	1,323,671	$	1,368,726	$	849,399	$	672,587	(35	)%	28	%
Investment securities, taxable	2,300,123		2,222,174		2,169,504		2,307,732		2,242,414		4	%	3	%
Investment securities, tax-exempt	317,655		323,852		326,858		330,902		315,488		(2	)%	1	%
Loans held for sale	368,112		262,777		255,830		274,834		211,694		40	%	74	%
Loans and leases	15,731,298		15,334,555		15,300,425		15,200,893		13,673,887		3	%	15	%
Total interest earning assets	19,578,963		19,467,029		19,421,343		18,963,760		17,116,070		1	%	14	%
Goodwill & other intangible assets, net	1,841,535		1,842,390		1,844,084		1,841,668		1,656,687		0	%	11	%
Total assets	22,777,421		22,687,515		22,625,461		22,220,999		20,036,742		0	%	14	%

Non-interest bearing demand deposits	4,852,989		4,808,062		4,836,517		4,558,672		3,963,233		1	%	22	%
Interest bearing deposits	12,274,814		12,187,132		12,153,481		11,948,731		10,948,991		1	%	12	%
Total deposits	17,127,803		16,995,194		16,989,998		16,507,403		14,912,224		1	%	15	%
Interest bearing liabilities	13,880,474		13,838,515		13,833,126		13,681,205		12,521,218		0	%	11	%

Shareholders’ equity - common	3,803,634		3,797,108		3,721,003		3,712,813		3,350,836		0	%	14	%
Tangible common equity (1)	1,962,099		1,954,718		1,876,919		1,871,145		1,694,149		0	%	16	%




Umpqua Holdings Corporation Average Balances
(Unaudited)
	Six Months Ended				% Change
(Dollars in thousands)	Jun 30, 2015		Jun 30, 2014		Year over Year
Temporary investments & interest bearing cash	$	1,091,447	$	689,188	58	%
Investment securities, taxable	2,261,364		1,904,508		19	%
Investment securities, tax-exempt	320,736		273,736		17	%
Loans held for sale	315,735		144,835		118	%
Loans and leases	15,534,022		10,719,625		45	%
Total interest earning assets	19,523,304		13,731,892		42	%
Goodwill & other intangible assets, net	1,841,960		1,218,779		51	%
Total assets	22,732,715		15,860,749		43	%

Non-interest bearing demand deposits	4,830,650		3,192,896		51	%
Interest bearing deposits	12,231,215		8,834,257		38	%
Total deposits	17,061,865		12,027,153		42	%
Interest bearing liabilities	13,859,610		9,963,209		39	%

Shareholders’ equity - common	3,800,389		2,549,211		49	%
Tangible common equity (1)	1,958,429		1,330,432		47	%

(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 Reports Second Quarter 2015 Results

July 15, 2015

Page 19



Umpqua Holdings Corporation Residential Mortgage Banking Activity
(unaudited)

	Quarter Ended															% Change
(Dollars in thousands)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Seq. Quarter		Year over Year
Residential mortgage servicing rights:
Residential mortgage loans serviced for others	$	12,302,866		$	11,874,910		$	11,590,310		$	11,300,947		$	10,838,313		4	%	14	%
MSR asset, at fair value	127,206			116,365			117,259			118,725			114,192			9	%	11	%
MSR as % of serviced portfolio	1.03		%	0.98		%	1.01		%	1.05		%	1.05		%
Residential mortgage banking revenue:
Origination and sale	$	33,667		$	31,498		$	18,378		$	24,097		$	22,142		7	%	52	%
Servicing	6,770			6,457			6,306			6,178			5,359			5	%	26	%
Change in fair value of MSR asset	(423		)	(9,728		)	(8,195		)	(4,279		)	(3,160		)	(96	)%	(87	)%
Total	$	40,014		$	28,227		$	16,489		$	25,996		$	24,341		42	%	64	%

Closed loan volume:
Closed loan volume - portfolio	$	446,712		$	311,149		$	319,779		$	292,154		$	271,228		44	%	65	%
Closed loan volume - for sale	997,225			862,155			622,133			695,877			623,727			16	%	60	%
Closed loan volume - total	$	1,443,937		$	1,173,304		$	941,912		$	988,031		$	894,955		23	%	61	%

Gain on sale margin:
Based on for sale volume	3.38		%	3.65		%	2.95		%	3.46		%	3.55		%	(0.27	)	(0.17	)

	Six Months Ended						% Change
	Jun 30, 2015			Jun 30, 2014			Year over Year
Residential mortgage banking revenue:
Origination and sale	$	65,165		$	30,563		113		%
Servicing	13,227			8,329			59		%
Change in fair value of MSR asset	(10,151		)	(4,112		)	147		%
Total	$	68,241		$	34,780		96		%

Closed loan volume:
Closed loan volume - portfolio	$	757,861		$	360,046		110		%
Closed loan volume - for sale	1,859,380			828,083			125		%
Closed loan volume - total	$	2,617,241		$	1,188,129		120		%


Gain on sale margin:
Based on for sale volume	3.50		%	3.69		%	(0.19		)

###

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