Net earnings of $67.8 million, or $0.31 per common share
Quarterly loan and lease growth of $379.4 million, or 8% annualized, and deposit growth of $637.7 million, or 13% annualized
Organization simplification and design complete, results include pre-tax restructuring charges of $8.2 million

PORTLAND, Ore., July 18, 2018 (GLOBE NEWSWIRE) -- Umpqua Holdings Corporation (NASDAQ:UMPQ) (the “Company”) reported net earnings available to common shareholders of $67.8 million for the second quarter of 2018, compared to $77.7 million for the first quarter of 2018 and $56.8 million for the second quarter of 2017.  Earnings per diluted common share were $0.31 for the second quarter of 2018, compared to $0.35 for the first quarter of 2018 and $0.26 for the second quarter of 2017.

“Our second quarter results were highlighted by strong growth in loans and deposits, higher net interest income and stable credit quality,” said Cort O'Haver, president and CEO of Umpqua Holdings Corporation.  “Building on the foundation of Umpqua Next Gen, during the second quarter we completed important elements of our operational excellence initiative, including organizational simplification and design phases, while advancing our human digital strategy.  We are starting to see good traction from these Phase I levers, and remain on pace to deliver on the previously announced $18 to $24 million in annual savings.”

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

• $8.2 million in restructuring charges related to the organization simplification and design and procurement phases of Umpqua Next Gen, including $4.1 million in severance-related expense and $4.1 million in professional fees.  This compares to $0.8 million in severance-related expense and $2.7 in professional fees in the prior quarter.
• $5.4 million negative adjustment related to the fair value change of the MSR asset, compared to $5.1 million gain in the prior quarter and $8.3 million negative adjustment in the same period of the prior year.
• $0.3 million gain related to the fair value change of the debt capital market swap derivatives, compared to a gain of $1.1 million in the prior quarter and a loss of $0.8 million in the same period of the prior year.
• $2.6 million of exit or disposal costs, compared to $2.5 million in the prior quarter and $0.7 million in the same period of the prior year.
• $1.4 million unrealized holding loss on equity securities, compared to no gain or loss recorded in the prior quarters.

Second Quarter 2018 Highlights (compared to prior quarter):

• Net interest income increased by $4.1 million, or 2%, attributable to the strong growth in loans and leases and the benefit from increases in short-term interest rates.
• Provision for loan and lease losses decreased by $0.3 million, driven primarily by lower net charge-offs, which decreased by four basis points to 0.22% of average loans and leases (annualized).
• Non-interest income decreased by $6.9 million, reflecting the $10.5 million linked quarter change in fair value of the MSR asset (see notable items above), partially offset by higher net revenue from the origination and sale of residential mortgages.
• Non-interest expense increased by $9.5 million, driven primarily by higher restructuring charges (see notable items above) and higher mortgage banking-related expense, consistent with the increase in mortgage originations.
• Non-performing assets to total assets increased by one basis point to 0.34%.
• Estimated total risk-based capital ratio of 13.7% and estimated Tier 1 common to risk weighted assets ratio of 10.8%.
• Declared quarterly cash dividend of $0.20 per common share.
• Repurchased 327,000 shares of common stock for $8.0 million.

Balance Sheet
Total consolidated assets were $26.5 billion as of June 30, 2018, compared to $25.9 billion as of March 31, 2018 and $25.3 billion as of June 30, 2017.  Including secured off-balance sheet lines of credit, total available liquidity was $10.4 billion as of June 30, 2018, representing 39% of total assets and 50% of total deposits.

Gross loans and leases were $19.7 billion as of June 30, 2018, an increase of $379.4 million, or 8% annualized, from $19.3 billion as of March 31, 2018.  This increase reflects balanced growth within the commercial term, leasing, multifamily, and residential mortgage loan portfolios, 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 $20.7 billion as of June 30, 2018, an increase of $637.7 million, or 13% annualized, from $20.1 billion as of March 31, 2018.  This increase was attributable to higher balances of time and non-interest bearing deposits, partially offset by lower money market deposits.

Net Interest Income
Net interest income was $227.3 million for the second quarter of 2018, up $4.1 million from the prior quarter.  This increase reflects higher average loans and leases, driven by strong growth during the quarter, as well as higher average yields on earning assets from the short-term rate increases.  Accretion of the credit discount recorded on acquired loans from Sterling Financial Corporation (“Sterling”) increased by $1.7 million from the prior quarter level, driven by a higher level of accretion on credit impaired loans associated with higher pay-offs.

The Company’s net interest margin was 3.93% for the second quarter of 2018, down 3 basis points from 3.96% for the first quarter of 2018, reflecting an increase in the cost of interest bearing liabilities and a higher average balance of interest-bearing cash, partially offset by higher average yields on interest-earning assets.  The increase in the cost of interest-bearing liabilities was attributable to an increase in average rates paid on interest-bearing deposits, as well as a higher percentage mix of time deposits, relative to the prior quarter.

Credit Quality
The allowance for loan and lease losses was $144.6 million, or 0.73% of loans and leases, as of June 30, 2018.  During the second quarter of 2018, the Company recorded $6.0 million of accretion related to the credit discount on acquired loans from Sterling, compared to $4.3 million in the prior quarter.  As of June 30, 2018, the Sterling purchased non-credit impaired loans had approximately $19.3 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 $21.6 million of remaining total discount.

The provision for loan and lease losses was $13.3 million for the second quarter of 2018, a decrease of $0.3 million from the prior quarter level, driven primarily by lower net charge-offs, which decreased by four basis points to 0.22% of average loans and leases (annualized).  As of June 30, 2018, non-performing assets were 0.34% of total assets, compared to 0.33% as of March 31, 2018 and 0.23% as of June 30, 2017.

Non-interest Income
Non-interest income was $71.7 million for the second quarter of 2018, down $6.9 million from the prior quarter, reflecting the negative linked quarter fair value change on the MSR asset (see notable items above), partially offset by an increase in net revenue from the origination and sale of residential mortgages.

Net revenue from the origination and sale of residential mortgages was $28.2 million for the second quarter of 2018, up $5.3 million from the prior quarter, reflecting stronger seasonal purchase activity.  For-sale mortgage origination volume increased by 22% from the prior quarter, and the home lending gain on sale margin increased by 3 basis points to 3.35% for the second quarter of 2018.  Of the current quarter’s mortgage production, 81% related to purchase activity, compared to 68% for the prior quarter and 77% for the same period of the prior year.

Non-interest Expense
Non-interest expense was $195.6 million for the second quarter of 2018, and included $8.2 million in restructuring charges related to the organization simplification and design and procurement phases of Umpqua Next Gen.  Excluding the impact of restructuring charges, non-interest expense increased by $4.7 million from the prior quarter.  This increase included $2.6 million in higher mortgage banking-related expense, reflecting the increase in mortgage originations, and $1.3 million in higher marketing expense.

Capital
As of June 30, 2018, the Company’s tangible book value per common share¹ was $10.02, compared to $9.97 in the prior quarter and $9.71 in the same period of the prior year.  During the second quarter of 2018, the Company repurchased 327,000 shares of common stock for $8.0 million.

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.

The Company’s estimated total risk-based capital ratio was 13.7% and its estimated Tier 1 common to risk weighted assets ratio was 10.8% as of June 30, 2018.  The Company remains above current “well-capitalized” regulatory minimums.  The regulatory capital ratios as of June 30, 2018 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 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)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017
Total shareholders' equity		$	4,021,643			$	4,013,882			$	4,014,786			$	3,985,260			$	3,958,845
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		27,047				28,589				30,130				31,819				33,508
Tangible common shareholders' equity		$	2,206,945			$	2,197,642			$	2,197,005			$	2,165,790			$	2,137,686
Total assets		$	26,533,230			$	25,875,643			$	25,741,439			$	25,695,663			$	25,257,784
Subtract:
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651
Other intangible assets, net		27,047				28,589				30,130				31,819				33,508
Tangible assets		$	24,718,532			$	24,059,403			$	23,923,658			$	23,876,193			$	23,436,625
Common shares outstanding at period end		220,205				220,461				220,149				220,225				220,205
Total shareholders' equity to total assets ratio		15.16		%		15.51		%		15.60		%		15.51		%		15.67		%
Tangible common equity ratio		8.93		%		9.13		%		9.18		%		9.07		%		9.12		%
Book value per common share		$	18.26			$	18.21			$	18.24			$	18.10			$	17.98
Tangible book value per common share		$	10.02			$	9.97			$	9.98			$	9.83			$	9.71

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 enterprise software and innovation company headquartered in Silicon Valley.  Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.

Earnings Conference Call Information

The Company will host its second quarter 2018 earnings conference call on Thursday, July 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 second quarter 2018 financial results.  There will be a live question-and-answer session following the presentation.  To join the call, please dial (888) 505-4378 ten minutes prior to the start time and enter conference ID: 5308253.  A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 5308253.  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 related cost savings.  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 and operational excellence initiatives on time and in amounts projected; 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)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Seq. Quarter			Year over Year
Interest income:
Loans and leases		$	237,343			$	227,738			$	223,206			$	223,321			$	212,998			4	%		11	%
Interest and dividends on investments:
Taxable		15,678				15,699				14,857				13,979				15,220				0	%		3	%
Exempt from federal income tax		2,057				2,128				2,121				2,125				2,237				(3	)%		(8	)%
Dividends		433				468				386				357				360				(7	)%		20	%
Temporary investments and interest bearing deposits		2,080				1,164				1,565				934				324				79	%		542	%
Total interest income		257,591				247,197				242,135				240,716				231,139				4	%		11	%
Interest expense:
Deposits		21,259				15,610				13,241				12,052				10,641				36	%		100	%
Securities sold under agreement to repurchase and federal funds purchased		155				63				43				81				321				146	%		(52	)%
Term debt		3,478				3,361				3,496				3,491				3,662				3	%		(5	)%
Junior subordinated debentures		5,400				4,932				4,734				4,628				4,437				9	%		22	%
Total interest expense		30,292				23,966				21,514				20,252				19,061				26	%		59	%
Net interest income		227,299				223,231				220,621				220,464				212,078				2	%		7	%
Provision for loan and lease losses		13,319				13,656				12,928				11,997				10,657				(2	)%		25	%
Non-interest income:
Service charges on deposits		15,520				14,995				15,413				15,849				15,478				4	%		0	%
Brokerage revenue		4,161				4,194				4,226				3,832				3,903				(1	)%		7	%
Residential mortgage banking revenue, net		33,163				38,438				42,118				33,430				33,894				(14	)%		(2	)%
Gain (loss) on sale of investment securities, net		14				—				—				(6		)		35				nm			(60	)%
Unrealized holding losses on equity securities not held for trading		(1,432		)		—				—				—				—				nm			nm
Gain on loan sales, net		1,348				1,230				3,688				7,969				3,310				10	%		(59	)%
Loss on junior subordinated debentures carried at fair value		—				—				(10,010		)		(1,590		)		(1,572		)		0	%		(100	)%
BOLI income		2,060				2,070				2,015				2,041				2,089				0	%		(1	)%
Other income		16,817				17,640				13,000				13,877				13,982				(5	)%		20	%
Total non-interest income		71,651				78,567				70,450				75,402				71,119				(9	)%		1	%
Non-interest expense:
Salaries and employee benefits		113,340				106,551				114,414				108,732				108,561				6	%		4	%
Occupancy and equipment, net		37,584				38,661				37,269				37,648				36,955				(3	)%		2	%
Intangible amortization		1,542				1,541				1,689				1,689				1,689				0	%		(9	)%
FDIC assessments		4,692				4,480				2,075				4,405				4,447				5	%		6	%
Gain on other real estate owned, net		(92		)		(38		)		(83		)		(99		)		(457		)		142	%		(80	)%
Merger related expenses		—				—				—				6,664				1,640				0	%		(100	)%
Other expenses		38,506				34,918				37,422				29,315				31,186				10	%		23	%
Total non-interest expense		195,572				186,113				192,786				188,354				184,021				5	%		6	%
Income before provision for income taxes		90,059				102,029				85,357				95,515				88,519				(12	)%		2	%
Provision for income taxes		22,273				24,360				3,486				34,182				31,707				(9	)%		(30	)%
Net income		67,786				77,669				81,871				61,333				56,812				(13	)%		19	%
Dividends and undistributed earnings allocated to participating securities		4				6				16				14				14				(33	)%		(71	)%
Net earnings available to common shareholders		$	67,782			$	77,663			$	81,855			$	61,319			$	56,798			(13	)%		19	%
Weighted average basic shares outstanding		220,283				220,370				220,194				220,215				220,310				0	%		0	%
Weighted average diluted shares outstanding		220,647				220,825				220,873				220,755				220,753				0	%		0	%
Earnings per common share – basic		$	0.31			$	0.35			$	0.37			$	0.28			$	0.26			(11	)%		19	%
Earnings per common share – diluted		$	0.31			$	0.35			$	0.37			$	0.28			$	0.26			(11	)%		19	%
nm = not meaningful

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
		Six Months Ended								% Change
(In thousands, except per share data)		Jun 30, 2018				Jun 30, 2017				Year over Year
Interest income
Loans and leases		$	465,081			$	418,994			11	%
Interest and dividends on investments:
Taxable		31,377				29,151				8	%
Exempt from federal income tax		4,185				4,479				(7	)%
Dividends		901				748				20	%
Temporary investments and interest bearing deposits		3,244				1,881				72	%
Total interest income		504,788				455,253				11	%
Interest expense
Deposits		36,869				20,289				82	%
Securities sold under agreement to repurchase and federal funds purchased		218				351				(38	)%
Term debt		6,839				7,172				(5	)%
Junior subordinated debentures		10,332				8,638				20	%
Total interest expense		54,258				36,450				49	%
Net interest income		450,530				418,803				8	%
Provision for loan and lease losses		26,975				22,329				21	%
Non-interest income
Service charges on deposits		30,515				30,207				1	%
Brokerage revenue		8,355				8,025				4	%
Residential mortgage banking revenue, net		71,601				60,728				18	%
Gain on sale of investment securities, net		14				33				(58	)%
Unrealized holding losses on equity securities not held for trading		(1,432		)		—				nm
Gain on loan sales, net		2,578				5,064				(49	)%
Loss on junior subordinated debentures carried at fair value		—				(3,127		)		(100	)%
BOLI income		4,130				4,158				(1	)%
Other income		34,457				26,256				31	%
Total non-interest income		150,218				131,344				14	%
Non-interest expense
Salaries and employee benefits		219,891				215,034				2	%
Occupancy and equipment, net		76,245				75,628				1	%
Intangible amortization		3,083				3,378				(9	)%
FDIC assessments		9,172				8,534				7	%
Gain on other real estate owned, net		(130		)		(375		)		(65	)%
Merger related expenses		—				2,660				(100	)%
Other expenses		73,424				61,876				19	%
Total non-interest expense		381,685				366,735				4	%
Income before provision for income taxes		192,088				161,083				19	%
Provision for income taxes		46,633				58,268				(20	)%
Net income		145,455				102,815				41	%
Dividends and undistributed earnings allocated to participating securities		10				26				(62	)%
Net earnings available to common shareholders		$	145,445			$	102,789			41	%
Weighted average basic shares outstanding		220,326				220,298				0	%
Weighted average diluted shares outstanding		220,760				220,790				0	%
Earnings per common share – basic		$	0.66			$	0.47			40	%
Earnings per common share – diluted		$	0.66			$	0.47			40	%
nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																						% Change
(In thousands, except per share data)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Seq. Quarter			Year over Year
Assets:
Cash and due from banks		$	314,513			$	304,681			$	330,856			$	304,760			$	320,027			3	%		(2	)%
Interest bearing cash and temporary investments		488,499				264,508				303,424				540,806				295,937				85	%		65	%
Investment securities:
Equity and other, at fair value		64,297				63,295				12,255				11,919				11,467				2	%		461	%
Available for sale, at fair value		2,854,398				2,947,414				3,065,769				3,047,358				3,132,566				(3	)%		(9	)%
Held to maturity, at amortized cost		3,586				3,667				3,803				3,905				4,017				(2	)%		(11	)%
Loans held for sale, at fair value		432,642				299,739				259,518				417,470				451,350				44	%		(4	)%
Loans and leases		19,693,955				19,314,589				19,080,184				18,677,762				18,321,142				2	%		7	%
Allowance for loan and lease losses		(144,556		)		(141,933		)		(140,608		)		(139,503		)		(136,867		)		2	%		6	%
Loans and leases, net		19,549,399				19,172,656				18,939,576				18,538,259				18,184,275				2	%		8	%
Restricted equity securities		42,320				43,501				43,508				45,509				45,511				(3	)%		(7	)%
Premises and equipment, net		245,954				259,354				269,182				276,316				288,853				(5	)%		(15	)%
Goodwill		1,787,651				1,787,651				1,787,651				1,787,651				1,787,651				0	%		0	%
Other intangible assets, net		27,047				28,589				30,130				31,819				33,508				(5	)%		(19	)%
Residential mortgage servicing rights, at fair value		166,217				164,760				153,151				141,225				141,832				1	%		17	%
Other real estate owned		12,101				13,055				11,734				4,160				4,804				(7	)%		152	%
Bank owned life insurance		309,844				307,745				306,864				305,572				303,894				1	%		2	%
Other assets		234,762				215,028				224,018				238,934				252,092				9	%		(7	)%
Total assets		$	26,533,230			$	25,875,643			$	25,741,439			$	25,695,663			$	25,257,784			3	%		5	%
Liabilities:
Deposits		$	20,744,526			$	20,106,856			$	19,948,300			$	19,851,910			$	19,459,950			3	%		7	%
Securities sold under agreements to repurchase		273,666				291,984				294,299				321,542				330,189				(6	)%		(17	)%
Term debt		801,739				801,868				802,357				852,306				852,219				0	%		(6	)%
Junior subordinated debentures, at fair value		280,669				278,410				277,155				266,875				265,423				1	%		6	%
Junior subordinated debentures, at amortized cost		88,838				88,895				100,609				100,690				100,770				0	%		(12	)%
Deferred tax liability, net		39,328				39,277				37,503				51,423				34,296				0	%		15	%
Other liabilities		282,821				254,471				266,430				265,657				256,092				11	%		10	%
Total liabilities		22,511,587				21,861,761				21,726,653				21,710,403				21,298,939				3	%		6	%
Shareholders' equity:
Common stock		3,509,146				3,515,506				3,517,258				3,516,558				3,514,094				0	%		0	%
Retained earnings		569,933				546,330				522,520				476,226				454,802				4	%		25	%
Accumulated other comprehensive loss		(57,436		)		(47,954		)		(24,992		)		(7,524		)		(10,051		)		20	%		471	%
Total shareholders' equity		4,021,643				4,013,882				4,014,786				3,985,260				3,958,845				0	%		2	%
Total liabilities and shareholders' equity		$	26,533,230			$	25,875,643			$	25,741,439			$	25,695,663			$	25,257,784			3	%		5	%
Common shares outstanding at period end		220,205				220,461				220,149				220,225				220,205				0	%		0	%
Book value per common share		$	18.26			$	18.21			$	18.24			$	18.10			$	17.98			0	%		2	%
Tangible book value per common share		$	10.02			$	9.97			$	9.98			$	9.83			$	9.71			1	%		3	%
Tangible equity - common		$	2,206,945			$	2,197,642			$	2,197,005			$	2,165,790			$	2,137,686			0	%		3	%
Tangible common equity to tangible assets		8.93		%		9.13		%		9.18		%		9.07		%		9.12		%		(0.20	)		(0.19	)

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
(Dollars in thousands)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net		$	3,525,001			$	3,526,221			$	3,491,137			$	3,475,243			$	3,401,679			0	%		4	%
Owner occupied term, net		2,484,960				2,476,287				2,488,251				2,467,995				2,593,395				0	%		(4	)%
Multifamily, net		3,210,796				3,131,275				3,087,792				2,993,203				2,964,851				3	%		8	%
Construction & development, net		568,572				522,680				540,707				521,666				464,690				9	%		22	%
Residential development, net		183,114				179,871				165,865				186,400				165,956				2	%		10	%
Commercial:
Term, net		2,106,804				2,025,213				1,944,987				1,819,664				1,686,597				4	%		25	%
Lines of credit & other, net		1,152,841				1,147,028				1,166,173				1,134,045				1,153,409				1	%		0	%
Leases & equipment finance, net		1,265,843				1,228,709				1,167,503				1,137,732				1,082,651				3	%		17	%
Residential real estate:
Mortgage, net		3,414,216				3,283,945				3,192,185				3,094,361				3,021,331				4	%		13	%
Home equity loans & lines, net		1,136,378				1,107,822				1,103,297				1,079,931				1,056,848				3	%		8	%
Consumer & other, net		645,430				685,538				732,287				767,522				729,735				(6	)%		(12	)%
Total, net of deferred fees and costs		$	19,693,955			$	19,314,589			$	19,080,184			$	18,677,762			$	18,321,142			2	%		7	%
Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net		18		%		18		%		18		%		19		%		19		%
Owner occupied term, net		13		%		13		%		13		%		13		%		14		%
Multifamily, net		16		%		16		%		16		%		16		%		16		%
Construction & development, net		3		%		3		%		3		%		3		%		3		%
Residential development, net		1		%		1		%		1		%		1		%		1		%
Commercial:
Term, net		11		%		10		%		10		%		10		%		9		%
Lines of credit & other, net		6		%		6		%		6		%		6		%		6		%
Leases & equipment finance, net		6		%		6		%		6		%		6		%		6		%
Residential real estate:
Mortgage, net		17		%		17		%		17		%		16		%		16		%
Home equity loans & lines, net		6		%		6		%		6		%		6		%		6		%
Consumer & other, net		3		%		4		%		4		%		4		%		4		%
Total		100		%		100		%		100		%		100		%		100		%

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				% Change
		Amount				Amount				Amount				Amount				Amount				Seq. Quarter			Year over Year
Deposits:
Demand, non-interest bearing		$	6,819,325			$	6,699,399			$	6,505,628			$	6,571,471			$	6,112,480			2	%		12	%
Demand, interest bearing		2,321,691				2,354,873				2,384,133				2,394,240				2,371,386				(1	)%		(2	)%
Money market		6,161,907				6,546,704				7,037,891				6,700,261				6,755,707				(6	)%		(9	)%
Savings		1,465,154				1,482,560				1,446,860				1,444,801				1,427,677				(1	)%		3	%
Time		3,976,449				3,023,320				2,573,788				2,741,137				2,792,700				32	%		42	%
Total		$	20,744,526			$	20,106,856			$	19,948,300			$	19,851,910			$	19,459,950			3	%		7	%
Total core deposits (1)		$	17,743,888			$	18,007,169			$	18,263,802			$	18,005,730			$	17,561,956			(1	)%		1	%
Deposit mix:
Demand, non-interest bearing		33		%		33		%		33		%		33		%		32		%
Demand, interest bearing		11		%		12		%		12		%		12		%		12		%
Money market		30		%		33		%		35		%		34		%		35		%
Savings		7		%		7		%		7		%		7		%		7		%
Time		19		%		15		%		13		%		14		%		14		%
Total		100		%		100		%		100		%		100		%		100		%
Number of open accounts:
Demand, non-interest bearing		402,771				399,721				397,427				394,755				389,767
Demand, interest bearing		77,918				78,181				78,853				79,899				80,594
Money market		55,393				54,752				55,175				55,659				55,795
Savings		162,414				162,841				162,453				162,556				161,369
Time		51,073				48,529				46,861				47,129				47,339
Total		749,569				744,024				740,769				739,998				734,864
Average balance per account:
Demand, non-interest bearing		$	16.9			$	16.8			$	16.4			$	16.6			$	15.7
Demand, interest bearing		29.8				30.1				30.2				30.0				29.4
Money market		111.2				119.6				127.6				120.4				121.1
Savings		9.0				9.1				8.9				8.9				8.8
Time		77.9				62.3				54.9				58.2				59.0
Total		$	27.7			$	27.0			$	26.9			$	26.8			$	26.5
(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)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Seq. Quarter			Year over Year
Non-performing assets:
Loans and leases on non-accrual status		$	43,485			$	45,775			$	51,465			$	44,573			$	26,566			(5	)%		64	%
Loans and leases past due 90+ days and accruing (1)		34,494				25,478				30,994				29,073				27,252				35	%		27	%
Total non-performing loans and leases		77,979				71,253				82,459				73,646				53,818				9	%		45	%
Other real estate owned		12,101				13,055				11,734				4,160				4,804				(7	)%		152	%
Total non-performing assets		$	90,080			$	84,308			$	94,193			$	77,806			$	58,622			7	%		54	%
Performing restructured loans and leases		$	27,144			$	31,659			$	32,157			$	45,813			$	52,861			(14	)%		(49	)%
Loans and leases past due 31-89 days		$	45,114			$	38,650			$	43,870			$	32,251			$	31,153			17	%		45	%
Loans and leases past due 31-89 days to total loans and leases		0.23		%		0.20		%		0.23		%		0.17		%		0.17		%
Non-performing loans and leases to total loans and leases (1)		0.40		%		0.37		%		0.43		%		0.39		%		0.29		%
Non-performing assets to total assets(1)		0.34		%		0.33		%		0.37		%		0.30		%		0.23		%

(1) Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $9.2 million, $6.3 million, $12.4 million, $12.3 million, and $16.3 million at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively.

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Seq. Quarter			Year over Year
Allowance for loan and lease losses:
Balance beginning of period		$	141,933			$	140,608			$	139,503			$	136,867			$	136,292
Provision for loan and lease losses		13,319				13,656				12,928				11,997				10,657				(2	)%		25	%
Charge-offs		(14,815		)		(15,812		)		(15,751		)		(13,222		)		(13,944		)		(6	)%		6	%
Recoveries		4,119				3,481				3,928				3,861				3,862				18	%		7	%
Net charge-offs		(10,696		)		(12,331		)		(11,823		)		(9,361		)		(10,082		)		(13	)%		6	%
Total allowance for loan and lease losses		144,556				141,933				140,608				139,503				136,867				2	%		6	%
Reserve for unfunded commitments		4,130				4,129				3,963				3,932				3,816				0	%		8	%
Total allowance for credit losses		$	148,686			$	146,062			$	144,571			$	143,435			$	140,683			2	%		6	%
Net charge-offs to average loans and leases (annualized)		0.22		%		0.26		%		0.25		%		0.20		%		0.22		%
Recoveries to gross charge-offs		27.80		%		22.01		%		24.94		%		29.20		%		27.70		%
Allowance for loan and lease losses to loans and leases		0.73		%		0.73		%		0.74		%		0.75		%		0.75		%
Allowance for credit losses to loans and leases		0.75		%		0.76		%		0.76		%		0.77		%		0.77		%

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
		Six Months Ended								% Change
(Dollars in thousands)		Jun 30, 2018				Jun 30, 2017				Year over Year
Allowance for loan and lease losses:
Balance beginning of period		$	140,608			$	133,984
Provision for loan and lease losses		26,975				22,329				21	%
Charge-offs		(30,627		)		(26,946		)		14	%
Recoveries		7,600				7,500				1	%
Net charge-offs		(23,027		)		(19,446		)		18	%
Total allowance for loan and lease losses		144,556				136,867				6	%
Reserve for unfunded commitments		4,130				3,816				8	%
Total allowance for credit losses		$	148,686			$	140,683			6	%
Net charge-offs to average loans and leases (annualized)		0.24		%		0.22		%
Recoveries to gross charge-offs		24.81		%		27.83		%

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
		Quarter Ended															% Change
		Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Seq. Quarter			Year over Year
Average Rates:
Yield on loans and leases		4.81	%		4.75	%		4.65	%		4.70	%		4.67	%		0.06			0.14
Yield on loans held for sale		4.86	%		4.21	%		3.99	%		3.89	%		3.26	%		0.65			1.60
Yield on taxable investments		2.37	%		2.31	%		2.17	%		2.00	%		2.07	%		0.06			0.30
Yield on tax-exempt investments (1)		3.64	%		3.68	%		4.49	%		4.59	%		4.64	%		(0.04	)		(1.00	)
Yield on interest bearing cash and temporary investments		1.82	%		1.55	%		1.22	%		1.47	%		1.03	%		0.27			0.79
Total yield on earning assets (1)		4.45	%		4.39	%		4.26	%		4.30	%		4.26	%		0.06			0.19
Cost of interest bearing deposits		0.62	%		0.47	%		0.40	%		0.36	%		0.33	%		0.15			0.29
Cost of securities sold under agreements to repurchase and fed funds purchased		0.22	%		0.08	%		0.06	%		0.10	%		0.32	%		0.14			(0.10	)
Cost of term debt		1.74	%		1.70	%		1.67	%		1.63	%		1.72	%		0.04			0.02
Cost of junior subordinated debentures		5.89	%		5.36	%		5.11	%		5.02	%		4.88	%		0.53			1.01
Total cost of interest bearing liabilities		0.80	%		0.65	%		0.58	%		0.55	%		0.52	%		0.15			0.28
Net interest spread (1)		3.65	%		3.74	%		3.68	%		3.75	%		3.74	%		(0.09	)		(0.09	)
Net interest margin (1)		3.93	%		3.96	%		3.88	%		3.94	%		3.91	%		(0.03	)		0.02
Performance Ratios:
Return on average assets		1.04	%		1.23	%		1.27	%		0.96	%		0.92	%		(0.19	)		0.12
Return on average tangible assets		1.12	%		1.32	%		1.36	%		1.04	%		0.99	%		(0.20	)		0.13
Return on average common equity		6.74	%		7.84	%		8.12	%		6.10	%		5.76	%		(1.10	)		0.98
Return on average tangible common equity		12.27	%		14.30	%		14.90	%		11.23	%		10.67	%		(2.03	)		1.60
Efficiency ratio – Consolidated		65.31	%		61.56	%		65.99	%		63.43	%		64.71	%		3.75			0.60
Efficiency ratio – Bank		62.53	%		59.58	%		62.09	%		61.42	%		62.45	%		2.95			0.08

⁽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
Selected Ratios
(Unaudited)
		Six Months Ended						% Change
		Jun 30, 2018			Jun 30, 2017			Year over Year
Average Rates:
Yield on loans and leases		4.78	%		4.66	%		0.12
Yield on loans held for sale		4.57	%		3.54	%		1.03
Yield on taxable investments		2.34	%		2.09	%		0.25
Yield on tax-exempt investments (1)		3.66	%		4.70	%		(1.04	)
Yield on interest bearing cash and temporary investments		1.72	%		0.82	%		0.90
Total yield on earning assets (1)		4.43	%		4.23	%		0.20
Cost of interest bearing deposits		0.55	%		0.31	%		0.24
Cost of securities sold under agreements to repurchase and fed funds purchased		0.15	%		0.19	%		(0.04	)
Cost of term debt		1.72	%		1.70	%		0.02
Cost of junior subordinated debentures		5.62	%		4.79	%		0.83
Total cost of interest bearing liabilities		0.73	%		0.50	%		0.23
Net interest spread (1)		3.70	%		3.73	%		(0.03	)
Net interest margin (1)		3.96	%		3.89	%		0.07
Performance Ratios:
Return on average assets		1.13	%		0.84	%		0.29
Return on average tangible assets		1.22	%		0.90	%		0.32
Return on average common equity		7.29	%		5.25	%		2.04
Return on average tangible common equity		13.28	%		9.76	%		3.52
Efficiency ratio – Consolidated		63.43	%		66.38	%		(2.95	)
Efficiency ratio – Bank		61.06	%		64.05	%		(2.99	)

⁽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)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Seq. Quarter			Year over Year
Temporary investments and interest bearing cash		$	458,133			$	303,670			$	509,187			$	253,015			$	125,886			51	%		264	%
Investment securities, taxable		2,723,406				2,793,449				2,804,530				2,867,292				3,008,079				(3	)%		(9	)%
Investment securities, tax-exempt		279,158				286,603				286,345				281,139				292,553				(3	)%		(5	)%
Loans held for sale		326,427				267,231				370,564				420,282				392,183				22	%		(17	)%
Loans and leases		19,444,890				19,150,315				18,765,251				18,537,827				18,024,651				2	%		8	%
Total interest earning assets		23,232,014				22,801,268				22,735,877				22,359,555				21,843,352				2	%		6	%
Goodwill and other intangible assets, net		1,815,529				1,817,068				1,818,730				1,820,394				1,822,032				0	%		0	%
Total assets		26,127,935				25,686,471				25,661,566				25,311,994				24,792,869				2	%		5	%
Non-interest bearing demand deposits		6,645,689				6,450,364				6,611,493				6,354,591				5,951,670				3	%		12	%
Interest bearing deposits		13,745,089				13,492,965				13,281,502				13,155,462				13,037,064				2	%		5	%
Total deposits		20,390,778				19,943,329				19,892,995				19,510,053				18,988,734				2	%		7	%
Interest bearing liabilities		15,199,900				14,971,759				14,790,883				14,705,842				14,659,650				2	%		4	%
Shareholders’ equity - common		4,031,253				4,019,822				3,998,609				3,989,868				3,956,777				0	%		2	%
Tangible common equity (1)		2,215,724				2,202,754				2,179,879				2,166,474				2,134,745				1	%		4	%

Umpqua Holdings Corporation Average Balances
(Unaudited)
		Six Months Ended								% Change
(Dollars in thousands)		Jun 30, 2018				Jun 30, 2017				Year over Year
Temporary investments and interest bearing cash		$	381,328			$	463,245			(18	)%
Investment securities, taxable		2,758,235				2,866,614				(4	)%
Investment securities, tax-exempt		282,860				289,515				(2	)%
Loans held for sale		296,992				371,989				(20	)%
Loans and leases		19,298,416				17,812,660				8	%
Total interest earning assets		23,017,831				21,804,023				6	%
Goodwill and other intangible assets, net		1,816,294				1,822,910				0	%
Total assets		25,908,423				24,761,749				5	%
Non-interest bearing demand deposits		6,548,566				5,917,984				11	%
Interest bearing deposits		13,619,723				13,078,171				4	%
Total deposits		20,168,289				18,996,155				6	%
Interest bearing liabilities		15,086,460				14,660,598				3	%
Shareholders’ equity - common		4,025,569				3,946,615				2	%
Tangible common equity (1)		2,209,275				2,123,705				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 Average Rates and Balances
(unaudited)
(dollars in thousands)	Quarter Ended
	June 30, 2018											March 31, 2018											June 30, 2017
	Average Balance				Interest Income or Expense				Average Yields or Rates			Average Balance				Interest Income or Expense				Average Yields or Rates			Average Balance				Interest Income or Expense				Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	326,427			$	3,967			4.86	%		$	267,231			$	2,815			4.21	%		$	392,183			$	3,193			3.26	%
Loans and leases (1)	19,444,890				233,376				4.81	%		19,150,315				224,923				4.75	%		18,024,651				209,805				4.67	%
Taxable securities	2,723,406				16,111				2.37	%		2,793,449				16,167				2.31	%		3,008,079				15,580				2.07	%
Non-taxable securities (2)	279,158				2,539				3.64	%		286,603				2,640				3.68	%		292,553				3,397				4.64	%
Temporary investments and interest-bearing cash	458,133				2,080				1.82	%		303,670				1,164				1.55	%		125,886				324				1.03	%
Total interest-earning assets	23,232,014				$	258,073			4.45	%		22,801,268				247,709				4.39	%		21,843,352				$	232,299			4.26	%
Allowance for loan and lease losses	(144,598		)									(142,409		)									(137,445		)
Other assets	3,040,519											3,027,612											3,086,962
Total assets	$	26,127,935										$	25,686,471										$	24,792,869
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,322,359			$	1,565			0.27	%		$	2,323,232			$	1,210			0.21	%		$	2,311,555			$	798			0.14	%
Money market deposits	6,332,372				5,896				0.37	%		6,908,067				5,713				0.34	%		6,682,937				2,975				0.18	%
Savings deposits	1,456,625				252				0.07	%		1,463,058				163				0.05	%		1,401,238				146				0.04	%
Time deposits	3,633,733				13,546				1.50	%		2,798,608				8,524				1.24	%		2,641,334				6,722				1.02	%
Total interest-bearing deposits	13,745,089				21,259				0.62	%		13,492,965				15,610				0.47	%		13,037,064				10,641				0.33	%
Repurchase agreements and federal funds purchased	285,338				155				0.22	%		303,059				63				0.08	%		405,892				321				0.32	%
Term debt	801,768				3,478				1.74	%		802,297				3,361				1.70	%		852,254				3,662				1.72	%
Junior subordinated debentures	367,705				5,400				5.89	%		373,438				4,932				5.36	%		364,440				4,437				4.88	%
Total interest-bearing liabilities	15,199,900				$	30,292			0.80	%		14,971,759				$	23,966			0.65	%		14,659,650				$	19,061			0.52	%
Non-interest-bearing deposits	6,645,689											6,450,364											5,951,670
Other liabilities	251,093											244,526											224,772
Total liabilities	22,096,682											21,666,649											20,836,092
Common equity	4,031,253											4,019,822											3,956,777
Total liabilities and shareholders' equity	$	26,127,935										$	25,686,471										$	24,792,869
NET INTEREST INCOME					$	227,781										$	223,743										$	213,238
NET INTEREST SPREAD									3.65	%										3.74	%										3.74	%
AVERAGE YIELD ON EARNING ASSETS (1), (2)									4.45	%										4.39	%										4.26	%
INTEREST EXPENSE TO EARNING ASSETS									0.52	%										0.43	%										0.35	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									3.93	%										3.96	%										3.91	%

(1) Non-accrual loans and leases are included in the average balance.

(2) Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate for 2018 and a 35% tax rate for 2017. The amount of such adjustment was an addition to recorded income of approximately $482,000 for the three months ended June 30, 2018 as compared to $512,000 for March 31, 2018 and $1.2 million for June 30, 2017.

Umpqua Holdings Corporation Average Rates and Balances
(unaudited)
(dollars in thousands)	Six Months Ended
	June 30, 2018											June 30, 2017
	Average Balance				Interest Income or Expense				Average Yields or Rates			Average Balance				Interest Income or Expense				Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	296,992			$	6,782			4.57	%		$	371,989			$	6,588			3.54	%
Loans and leases (1)	19,298,416				458,299				4.78	%		17,812,660				412,406				4.66	%
Taxable securities	2,758,235				32,278				2.34	%		2,866,614				29,899				2.09	%
Non-taxable securities (2)	282,860				5,179				3.66	%		289,515				6,806				4.70	%
Temporary investments and interest-bearing cash	381,328				3,244				1.72	%		463,245				1,881				0.82	%
Total interest-earning assets	23,017,831				$	505,782			4.43	%		21,804,023				$	457,580			4.23	%
Allowance for loan and lease losses	(143,509		)									(136,834		)
Other assets	3,034,101											3,094,560
Total assets	$	25,908,423										$	24,761,749
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,322,793			$	2,775			0.24	%		$	2,288,870			$	1,443			0.13	%
Money market deposits	6,618,629				11,609				0.35	%		6,776,705				5,644				0.17	%
Savings deposits	1,459,824				414				0.06	%		1,383,124				274				0.04	%
Time deposits	3,218,477				22,071				1.38	%		2,629,472				12,928				0.99	%
Total interest-bearing deposits	13,619,723				36,869				0.55	%		13,078,171				20,289				0.31	%
Repurchase agreements and federal funds purchased	294,150				218				0.15	%		366,498				351				0.19	%
Term debt	802,031				6,839				1.72	%		852,302				7,172				1.70	%
Junior subordinated debentures	370,556				10,332				5.62	%		363,627				8,638				4.79	%
Total interest-bearing liabilities	15,086,460				$	54,258			0.73	%		14,660,598				$	36,450			0.50	%
Non-interest-bearing deposits	6,548,566											5,917,984
Other liabilities	247,828											236,552
Total liabilities	21,882,854											20,815,134
Common equity	4,025,569											3,946,615
Total liabilities and shareholders' equity	$	25,908,423										$	24,761,749
NET INTEREST INCOME					$	451,524										$	421,130
NET INTEREST SPREAD									3.70	%										3.73	%
AVERAGE YIELD ON EARNING ASSETS (1), (2)									4.43	%										4.23	%
INTEREST EXPENSE TO EARNING ASSETS									0.47	%										0.34	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)									3.96	%										3.89	%

(1) Non-accrual loans and leases are included in the average balance.

(2) Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate for 2018 and a 35% tax rate for 2017. The amount of such adjustment was an addition to recorded income of approximately $1.0 million for the six months ended June 30, 2018 as compared to $2.3 million for the same period in 2017.

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(unaudited)
		Quarter Ended																				% Change
(Dollars in thousands)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017				Seq. Quarter			Year over Year
Residential mortgage servicing rights:
Residential mortgage loans serviced for others		$	15,508,182			$	15,442,915			$	15,336,597			$	15,007,942			$	14,797,242			0	%		5	%
MSR asset, at fair value		166,217				164,760				153,151				141,225				141,832				1	%		17	%
MSR as % of serviced portfolio		1.07		%		1.07		%		1.00		%		0.94		%		0.96		%		0	%		11	%
Residential mortgage banking revenue:
Origination and sale		$	28,159			$	22,837			$	29,864			$	32,784			$	32,385			23	%		(13	)%
Servicing		10,407				10,522				10,287				9,879				9,839				(1	)%		6	%
Change in fair value of MSR asset		(5,403		)		5,079				1,967				(9,233		)		(8,330		)		(206	)%		(35	)%
Total		$	33,163			$	38,438			$	42,118			$	33,430			$	33,894			(14	)%		(2	)%
Closed loan volume:
Closed loan volume - portfolio		$	294,581			$	237,783			$	265,718			$	336,362			$	312,022			24	%		(6	)%
Closed loan volume - for-sale		839,489				687,226				850,453				891,063				918,200				22	%		(9	)%
Closed loan volume - total		$	1,134,070			$	925,009			$	1,116,171			$	1,227,425			$	1,230,222			23	%		(8	)%
Gain on sale margin:
Based on for-sale volume		3.35		%		3.32		%		3.51		%		3.68		%		3.53		%		0.03			(0.18	)
		Six Months Ended								% Change
(Dollars in thousands)		Jun 30, 2018				Jun 30, 2017				Year over Year
Residential mortgage banking revenue:
Origination and sale		$	50,996			$	57,032			(11		)%
Servicing		20,929				19,697				6		%
Change in fair value of MSR asset		(324		)		(16,001		)		(98		)%
Total		$	71,601			$	60,728			18		%
Closed loan volume:
Closed loan volume - portfolio		$	532,364			$	557,356			(4		)%
Closed loan volume - for-sale		1,526,715				1,672,915				(9		)%
Closed loan volume - total		$	2,059,079			$	2,230,271			(8		)%
Gain on sale margin:
Based on for-sale volume		3.34		%		3.41		%		(0.07		)

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