PR Newswire | Oct 20, 2021 04:16PM EDT

10/20 15:15 CDT

Umpqua Reports Third Quarter 2021 ResultsThird quarter 2021 Results-- Net income of $108.1 million, or $0.49 per common share-- Non-PPP loan balances increased $479.7 million or 2.3%-- Deposit balances increased $754.8 million or 2.9%-- Provision for credit losses recapture of $18.9 million as modeled economic conditions improve| PORTLAND, Ore., Oct. 20, 2021

PORTLAND, Ore., Oct. 20, 2021 /PRNewswire/ --

$0.49 $108 15.88% 14.9%

Net earnings perNet income Return on average Total risk-based diluted common ($ in tangible common equity capital ratio share millions) ("ROATCE")^1 (estimated)

CEO Commentary

"Umpqua's third quarter results are highlighted by the robust non-PPP (Paycheck Protection Program) loan growth of $480 million and continued reduction of our total cost of deposits, now down to just eight basis points" said Cort O'Haver, President and CEO. "Our growth initiatives will continue as we work to execute our previously announced combination with Columbia Banking System. Combined, we will be the leading regional bank focused on the West Coast. We are creating a company with enhanced scale to fuel organic growth as we continue to create value to our shareholders."

-Cort O'Haver, President and CEO of Umpqua Holdings Corporation

THIRD QUARTER HIGHLIGHTS



? Net interest income increased by $5.3 million on a quarter to quarter basis primarily due to higher interest income and Net Interest lower interest expense in the current period. Income and NIM ? Net interest margin was 3.21%, up one basis point from the prior period due to higher average non-PPP loan balances and lower interest expense.



? Non-interest income decreased by $17.4 million primarily due to lower net mortgage banking revenue of $10.3 million and Non-Interest the $4.4 million gain related to the sale of Umpqua InvestmentsIncome and in the prior period. Expense ? Non-interest expense decreased by $5.6 million due to lower salaries and benefit expenses of $3.9 million.



? Net charge-offs decreased by 14 basis points to 0.11% of average loans and leases (annualized). Credit ? A recapture of the provision for credit losses of $18.9 Quality million was recorded in the period as modeled economic conditions improve. ? Non-performing assets to total assets remained at 0.17%, consistent with the prior period.



? Estimated total risk-based capital ratio of 14.9% and estimated Tier 1 Risk Based Capital ratio of 12.1%. Capital ? Paid a quarterly cash dividend of $0.21 per common share on August 31, 2021 to shareholders of record as of August 20, 2021.



? Repurchased 4 million shares for a total of $78.2 million during the third quarter. Notable items ? $3.8 million in exit disposal costs related to store consolidations and back-office lease exits.

3Q21 KEY FINANCIAL DATA



PERFORMANCE METRICS 3Q21 2Q21 3Q20

Return on average assets 1.40% 1.54% 1.68%

Return on average tangible common equity 15.88% 17.33% 19.62%

Net interest margin 3.21% 3.20% 3.08%

Efficiency ratio - consolidated 59.44% 58.96% 54.52%

Loan to deposit ratio 81.65% 84.67% 90.91%



INCOME STATEMENT 3Q21 2Q21 3Q20 ($ in 000s, excl. per share data)

Net interest income $235,074 $229,763 $216,574

(Recapture) of provision for credit losses($18,919)($22,996)($338)

Non-interest income $73,705 $91,075 $131,924

Non-interest expense $183,753 $189,400 $190,207

Earnings per common share - diluted $0.49 $0.53 $0.57

Dividends paid per share $0.21 $0.21 $0.21



BALANCE SHEET 3Q21 2Q21 3Q20

Total assets $30.9 B$30.3 B$29.4 B

Loans and leases $22.0 B$22.1 B$22.4 B

Total deposits $26.9 B$26.2 B$24.7 B

Tangible book value per share^1 $12.52 $12.49 $11.77

Book value per common share $12.57 $12.54 $11.85

Balance Sheet

Total consolidated assets were $30.9 billion as of September 30, 2021, compared to $30.3 billion as of June 30, 2021 and $29.4 billion as of September 30, 2020. Including secured off-balance sheet lines of credit, total available liquidity was $16.2 billion as of September 30, 2021, representing 52% of total assets and 60% of total deposits.

Gross loans and leases were $22.0 billion as of September 30, 2021, a decrease of $173.8 million relative to June 30, 2021. The net decrease in gross loans and leases is primarily due to an increase of non-PPP loans of $479.7 million or 2.3% offset by the expected decrease in PPP loan balances of $653.5 million due to processed forgiveness and payoffs. Multifamily balances increased $259.3 million and residential mortgage balances increased $185.4 million during the quarter. The decrease in commercial term loan balances of $588.8 million includes the aforementioned decrease of PPP loan balances of $653.5 million. Please refer to the additional loan tables in the Q3 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.

Total deposits were $26.9 billion as of September 30, 2021, an increase of $754.8 million or 2.9% from $26.2 billion as of June 30, 2021. This increase was primarily attributable to growth in non-interest bearing demand deposits of $402.2 million, growth in interest bearing demand deposits of $291.8 million and growth in money market balances of $220.8 million, partially offset by a decline in time deposits of $264.4 million.

Net Interest Income

Net interest income was $235.1 million for the third quarter of 2021, up $5.3 million from the prior quarter. The increase was primarily driven by an increase of $2.7 million in interest income, as a result of higher non-PPP average loan balances, and a decrease of $2.6 million in interest expense due to the decline in time deposits and term debt in the quarter compared to the prior period.

The Company's net interest margin was 3.21% for the third quarter of 2021, up one basis point from 3.20% for the second quarter of 2021 as a result of the increase in net interest income.

Credit Quality

The allowance for credit losses was $269.3 million, or 1.23% of loans and leases, as of September 30, 2021, which was down from $294.4 million, or 1.33% of loans and leases, as of June 30, 2021. There was a recapture of provision for credit losses of $18.9 million as a result of improvement in economic forecasts used in the credit models.

Net charge-offs as a percentage of average loans and leases decreased by 14 basis points to 0.11% of average loans and leases (annualized) for the third quarter of 2021. The decrease in net charge-offs for the quarter was primarily due to continued stable credit performance of the loan and lease portfolio. As of September 30, 2021, non-performing assets were 0.17% of total assets, compared to 0.17% as of June 30, 2021 and 0.27% as of September 30, 2020.

Current Expected Credit Loss (CECL)

On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments("CECL"). In applying CECL, we use credit models that factor in economic forecasts to project life of loan performance. At the beginning of the COVID-19 pandemic, economic forecasts projected significant, negative COVID-19 related impacts to the economy; therefore we recorded significant provisions for credit losses in the first and second quarters of 2020. As those future economic forecasts stabilized as well as incorporating loan mix changes, we recorded a recapture of $18.9 million of the allowance for credit losses in the current period.

Non-interest Income

Non-interest income was $73.7 million for the third quarter of 2021, down $17.4 million from the prior quarter driven primarily by a decrease in net mortgage banking revenue of $10.3 million and the $4.4 million gain on the sale of Umpqua Investments in the prior period.

Revenue from the origination and sale of residential mortgages was $30.3 million for the third quarter of 2021, a decrease of $11.1 million from the prior quarter. This decrease reflects a sequential quarter decrease of $265.7 million or 21.2% in for-sale mortgage origination volume and a decrease of 23 basis points in the mortgage banking gain on sale margin to 3.07% for the third quarter of 2021. Of the current quarter's mortgage production, 61% related to purchase activity, compared to 56% for the prior quarter and 46% for the same period of the prior year.

Non-interest Expense

Non-interest expense was $183.8 million for the third quarter of 2021, down $5.6 million from the prior quarter level. This decrease was primarily due to decreases in salaries and employee benefit expenses of $3.9 million from the prior period due to lower mortgage banking production, a decrease in consulting and professional fees of $1.0 million, a decrease in occupancy and equipment expenses of $0.7 million, offset by an increase in FDIC assessment costs of $0.5 million.

Capital

As of September 30, 2021, the Company's tangible book value per common share2 increased to $12.52, compared to $12.49 in the prior quarter and $11.77 in the same period of the prior year.

The Company's estimated total risk-based capital ratio was 14.9% and its estimated Tier 1 common to risk weighted

assets ratio was 12.1% as of September 30, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of September 30, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

Segment Disclosures

Segment disclosures on pages 19, 20 and 21 of this press release provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.

The Core Banking segment includes all lines of business, except Mortgage Banking, including wholesale, retail, wealth management, as well as the operations, technology, and administrative functions of the Bank and Holding Company. The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from our serviced loan portfolio, the quarterly changes to the mortgage servicing rights (MSR) asset, and the specific expenses that are related to mortgage banking activities including variable commission expenses. Revenue and related expenses for residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for our consumer channels and are originated through a variety of channels throughout the Company.

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, Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 except per share data)

Total shareholders'$2,722,379 $2,766,316 $2,681,869 $2,704,577 $2,610,244 equity

Subtract:

Goodwill - - 2,715 2,715 2,715

Other intangible 9,970 11,100 12,230 13,360 14,606 assets, net

Tangible common $2,712,409 $2,755,216 $2,666,924 $2,688,502 $2,592,923 shareholders' equity

Total assets $30,891,479 $30,284,965 $30,036,680 $29,235,175 $29,437,441

Subtract:

Goodwill - - 2,715 2,715 2,715

Other intangible 9,970 11,100 12,230 13,360 14,606 assets, net

Tangible $30,881,509 $30,273,865 $30,021,735 $29,219,100 $29,420,120 assets

Common shares outstanding 216,622 220,626 220,491 220,226 220,222 at period end



Total shareholders' equity to 8.81 %9.13 %8.93 %9.25 %8.87 %total assets ratio

Tangible common equity8.78 %9.10 %8.88 %9.20 %8.81 %ratio

Book value per common $12.57 $12.54 $12.16 $12.28 $11.85 share

Tangible book value per $12.52 $12.49 $12.10 $12.21 $11.77 common share

About Umpqua Holdings Corporation

Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based 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 Corporation is headquartered in Portland, Oregon. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the sixteenth consecutive year. In addition to its retail banking presence, Umpqua Bank also owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses.

Earnings Conference Call Information

The Company will host its third quarter 2021 earnings conference call on October 21, 2021, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its third quarter 2021 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 4277385. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 4277385. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives. 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: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; the ability to complete, or any delays in completing, the proposed transaction between us and Columbia Banking System, Inc.; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the proposed transaction that may impact our ability to pursue certain business opportunities or strategic transactions? the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities; and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company's Board of Directors, and may be subject to regulatory approval or conditions.

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)

Quarter Ended % Change

(In Seq. Year thousands, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, over except per 2021 2021 2021 2020 2020 QuarterYear share data)

Interest income:

Loans and $224,403$223,470$221,141$240,815$229,4570 % (2) %leases

Interest and dividends on investments:

Taxable 16,102 14,619 13,112 11,951 10,168 10 % 58 %

Exempt from federal 1,470 1,487 1,534 1,523 1,490 (1) % (1) %income tax

Dividends 213 405 598 659 710 (47)% (70)%

Temporary investments and interest1,237 774 624 531 474 60 % 161 %bearing deposits

Total interest 243,425 240,755 237,009 255,479 242,299 1 % 0 %income

Interest expense:

Deposits 5,100 7,016 10,678 14,567 19,121 (27)% (73)%

Securities sold under agreement to repurchase 88 68 76 93 84 29 % 5 %and federal funds purchased

Borrowings 149 866 1,772 2,765 3,271 (83)% (95)%

Junior subordinated3,014 3,042 3,052 3,147 3,249 (1) % (7) %debentures

Total interest 8,351 10,992 15,578 20,572 25,725 (24)% (68)%expense

Net interest235,074 229,763 221,431 234,907 216,574 2 % 9 %income

(Recapture) provision (18,919) (22,996) - 29 (338) (18)% nm for credit losses

Non-interest income:

Service charges on 10,941 10,310 9,647 10,202 10,405 6 % 5 %deposits

Card-based 9,111 10,274 7,374 7,754 7,118 (11)% 28 %fees

Brokerage 31 1,135 3,915 4,093 3,686 (97)% (99)%revenue

Residential mortgage 34,150 44,443 65,033 79,028 90,377 (23)% (62)%banking revenue, net

Gain on sale of debt - - 4 - - nm nm securities, net

(Loss) gain on equity (343) 4 (706) (173) (112) nm 206 %securities, net

Gain on loan and lease 4,208 5,318 1,373 3,374 1,092 (21)% 285 %sales, net

BOLI income 2,038 2,092 2,071 2,067 2,087 (3) % (2) %

Other income13,569 17,499 20,089 17,615 17,271 (22)% (21)%

Total non-interest73,705 91,075 108,800 123,960 131,924 (19)% (44)%income

Non-interest expense:

Salaries and employee 117,636 121,573 124,134 132,460 120,337 (3) % (2) %benefits

Occupancy and 33,944 34,657 34,635 41,758 36,720 (2) % (8) %equipment, net

Intangible 1,130 1,130 1,130 1,246 1,247 0 % (9) %amortization

FDIC 2,136 1,607 2,599 3,014 2,989 33 % (29)%assessments

Other 28,907 30,433 25,094 32,834 28,914 (5) % 0 %expenses

Total non-interest183,753 189,400 187,592 211,312 190,207 (3) % (3) %expense

Income before provision 143,945 154,434 142,639 147,526 158,629 (7) % (9) %for income taxes

Provision (benefit) 35,879 38,291 34,902 (3,204) 33,758 (6) % 6 %for income taxes

Net income $108,066$116,143$107,737$150,730$124,871(7) % (13)%



Weighted average 218,416 220,593 220,367 220,225 220,221 (1) % (1) %basic shares outstanding

Weighted average diluted 218,978 221,022 220,891 220,663 220,418 (1) % (1) %shares outstanding

Earnings per common share$0.49 $0.53 $0.49 $0.68 $0.57 (8) % (14)%- basic

Earnings per common share$0.49 $0.53 $0.49 $0.68 $0.57 (8) % (14)%- diluted



nm = not meaningful







Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)

Nine Months Ended % Change

(In thousands, except per share data)Sep 30, 2021Sep 30, 2020 Year over Year

Interest income:

Loans and leases $669,014 $710,624 (6) %

Interest and dividends on investments:

Taxable 43,833 35,788 22 %

Exempt from federal income tax 4,491 4,572 (2) %

Dividends 1,216 1,956 (38) %

Temporary investments and interest 2,635 4,208 (37) %bearing deposits

Total interest income 721,189 757,148 (5) %

Interest expense:

Deposits 22,794 85,633 (73) %

Securities sold under agreement to repurchase and federal funds 232 673 (66) %purchased

Borrowings 2,787 11,156 (75) %

Junior subordinated debentures 9,108 12,074 (25) %

Total interest expense 34,921 109,536 (68) %

Net interest income 686,268 647,612 6 %

(Recapture) provision for credit (41,915) 204,832 (120) %losses

Non-interest income:

Service charges on deposits 30,898 30,635 1 %

Card-based fees 26,759 20,436

Brokerage revenue 5,081 11,506 (56) %

Residential mortgage banking revenue,143,626 191,794 (25) %net

Gain on sale of debt securities, net 4 190 (98) %

(Loss) gain on equity securities, net(1,045) 942 (211) %

Gain on loan and lease sales, net 10,899 3,333 227 %

BOLI income 6,201 6,332 (2) %

Other income 51,157 22,881 124 %

Total non-interest income 273,580 288,049 (5) %

Non-interest expense:

Salaries and employee benefits 363,343 346,787 5 %

Occupancy and equipment, net 103,236 109,892 (6) %

Intangible amortization 3,390 3,740 (9) %

FDIC assessments 6,342 9,502 (33) %

Goodwill impairment - 1,784,936 nm

Other expenses 84,434 79,918 6 %

Total non-interest expense 560,745 2,334,775 (76) %

Income (loss) before provision for 441,018 (1,603,946) (127) %income taxes

Provision for income taxes 109,072 70,204 55 %

Net income (loss) $331,946 $(1,674,150)(120) %



Weighted average basic shares 219,791 220,216 0 %outstanding

Weighted average diluted shares 220,278 220,216 0 %outstanding

Earnings (loss) per common share - $1.51 $(7.60) (120) %basic

Earnings (loss) per common share - $1.51 $(7.60) (120) %diluted



nm = not meaningful







Umpqua Holdings Corporation Consolidated Balance Sheets

(Unaudited)

% Change

(In Seq. Year thousands, Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 over except per QuarterYear share data)

Assets:

Cash and due $395,555 $397,526 $379,361 $370,219 $370,595 0 %7 %from banks

Interest bearing cash 3,349,034 2,688,285 2,861,820 2,202,962 1,849,132 25 %81 %and temporary investments

Investment securities:

Equity and other, at 81,575 82,099 82,771 83,077 82,769 (1) %(1) %fair value

Available for sale, at fair3,723,171 3,473,950 3,167,825 2,932,558 2,898,700 7 %28 %value

Held to maturity, at 2,795 2,876 2,954 3,034 3,088 (3) %(9) %amortized cost

Loans held 352,466 429,052 376,481 766,225 683,960 (18) %(48) %for sale

Loans and 21,969,940 22,143,739 22,160,860 21,779,367 22,426,473 (1) %(2) %leases

Allowance for credit losses(257,560) (279,887) (311,283) (328,401) (345,049) (8) %(25) %on loans and leases

Net loans and21,712,380 21,863,852 21,849,577 21,450,966 22,081,424 (1) %(2) %leases

Restricted equity 10,946 15,247 22,057 41,666 50,062 (28) %(78) %securities

Premises and equipment, 172,624 172,546 176,571 178,050 185,104 0 %(7) %net

Operating lease 88,379 95,030 100,643 104,937 107,321 (7) %(18) %right-of-use assets

Goodwill - - 2,715 2,715 2,715 nm (100)%

Other intangible 9,970 11,100 12,230 13,360 14,606 (10) %(32) %assets, net

Residential mortgage servicing 105,834 102,699 100,413 92,907 93,248 3 %13 %rights, at fair value

Bank owned life 325,646 324,998 322,867 323,470 326,120 0 %0 %insurance

Deferred tax 8,402 - 10,905 - - nm nm asset, net

Other assets 552,702 625,705 567,490 669,029 688,597 (12) %(20) %

Total assets $30,891,479 $30,284,965 $30,036,680 $29,235,175 $29,437,441 2 %5 %

Liabilities:

Deposits $26,908,397 $26,153,553 $25,886,833 $24,622,201 $24,669,783 3 %9 %

Securities sold under 467,760 480,302 420,402 375,384 388,028 (3) %21 %agreements to repurchase

Borrowings 6,367 111,405 281,444 771,482 996,520 (94) %(99) %

Junior subordinated 299,508 287,723 281,580 255,217 247,045 4 %21 %debentures, at fair value

Junior subordinated debentures, 88,098 88,155 88,212 88,268 88,325 0 %0 %at amortized cost

Operating lease 100,557 106,195 109,014 113,593 115,790 (5) %(13) %liabilities

Deferred tax liability, - 2,497 - 5,441 13,239 (100)%(100)%net

Other 298,413 288,819 287,326 299,012 308,467 3 %(3) %liabilities

Total 28,169,100 27,518,649 27,354,811 26,530,598 26,827,197 2 %5 %liabilities

Shareholders' equity:

Common stock 3,442,085 3,517,641 3,515,248 3,514,599 3,512,153 (2) %(2) %

Accumulated (739,915) (801,954) (871,511) (932,767) (1,036,931) (8) %(29) %deficit

Accumulated other 20,209 50,629 38,132 122,745 135,022 (60) %(85) %comprehensive income

Total shareholders'2,722,379 2,766,316 2,681,869 2,704,577 2,610,244 (2) %4 %equity

Total liabilities and $30,891,479 $30,284,965 $30,036,680 $29,235,175 $29,437,441 2 %5 %shareholders' equity



Common shares outstanding 216,622 220,626 220,491 220,226 220,222 (2) %(2) %at period end

Book value per common $12.57 $12.54 $12.16 $12.28 $11.85 0 %6 %share

Tangible book value per $12.52 $12.49 $12.10 $12.21 $11.77 0 %6 %common share

Tangible equity - $2,712,409 $2,755,216 $2,666,924 $2,688,502 $2,592,923 (2) %5 %common

Tangible common equity8.78 %9.10 %8.88 %9.20 %8.81 %(0.32) (0.03) to tangible assets

nm = not meaningful







Umpqua Holdings Corporation

Loan and Lease Portfolio

(Unaudited)

Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 % Change

(Dollars in Seq. Year thousands) Amount Amount Amount Amount Amount Quarterover Year

Loans and leases:

Commercial real estate:

Non-owner occupied $3,561,764 $3,580,386 $3,455,773 $3,505,802 $3,533,776 (1) % 1 %term, net

Owner occupied 2,330,338 2,398,326 2,358,169 2,333,945 2,411,098 (3) % (3) %term, net

Multifamily,3,813,024 3,553,704 3,421,320 3,349,196 3,389,034 7 % 13 %net

Construction & 882,778 857,866 876,297 828,478 757,462 3 % 17 %development, net

Residential development,177,148 193,904 190,841 192,761 163,400 (9) % 8 %net

Commercial:

Term, net^ 3,159,466 3,748,269 4,350,763 4,024,467 4,246,229 (16)% (26)%(1)

Lines of credit & 930,350 908,518 825,162 862,760 894,782 2 % 4 %other, net

Leases & equipment 1,457,248 1,437,372 1,420,977 1,456,630 1,496,650 1 % (3) %finance, net

Residential:

Mortgage, 4,330,860 4,145,432 3,958,644 3,871,906 4,042,416 4 % 7 %net

Home equity loans & 1,133,823 1,118,278 1,097,168 1,136,064 1,172,697 1 % (3) %lines, net

Consumer 193,141 201,684 205,746 217,358 318,929 (4) % (39)%& other, net

Total loans and leases, net of $21,969,940 $22,143,739 $22,160,860 $21,779,367 $22,426,473 (1) % (2) %deferred fees and costs



(1) The Bank participates in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include the following net PPP loan balances:



Net PPP loan$726,737 $1,380,212 $2,047,793 $1,750,211 $2,007,379 (47)% (64)%balance



Loan and leases mix:

Commercial real estate:

Non-owner occupied 16 %16 %15 %16 %16 % term, net

Owner occupied 11 %11 %11 %11 %11 % term, net

Multifamily,17 %16 %15 %15 %15 % net

Construction & 4 %4 %4 %4 %3 % development, net

Residential development,1 %1 %1 %1 %1 % net

Commercial:

Term, net 14 %17 %20 %18 %19 %

Lines of credit & 4 %4 %4 %4 %4 % other, net

Leases & equipment 7 %6 %6 %7 %7 % finance, net

Residential:

Mortgage, 20 %19 %18 %18 %18 % net

Home equity loans & 5 %5 %5 %5 %5 % lines, net

Consumer 1 %1 %1 %1 %1 % & other, net

Total 100 %100 %100 %100 %100 %







Umpqua Holdings Corporation

Deposits by Type/Core Deposits

(Unaudited)

Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 % Change

(Dollars in Seq. Year thousands) Amount Amount Amount Amount Amount Quarterover Year

Deposits:

Demand, non-interest$11,121,127 $10,718,921 $10,500,482 $9,632,773 $9,475,244 4 %17 %bearing

Demand, interest 3,758,019 3,466,251 3,244,624 3,051,487 2,931,990 8 %28 %bearing

Money market7,780,442 7,559,621 7,554,798 7,173,920 7,160,838 3 %9 %

Savings 2,325,929 2,221,524 2,109,211 1,912,752 1,848,639 5 %26 %

Time 1,922,880 2,187,236 2,477,718 2,851,269 3,253,072 (12) %(41)%

Total $26,908,397 $26,153,553 $25,886,833 $24,622,201 $24,669,783 3 %9 %



Total core deposits^ $26,029,814 $25,122,851 $24,740,621 $23,298,561 $23,134,283 4 %13 %(1)



Deposit mix:

Demand, non-interest41 %41 %41 %39 %38 % bearing

Demand, interest 14 %13 %12 %12 %12 % bearing

Money market29 %29 %29 %29 %29 %

Savings 9 %9 %8 %8 %8 %

Time 7 %8 %10 %12 %13 %

Total 100 %100 %100 %100 %100 %



Number of open accounts:

Demand, non-interest425,337 424,626 422,792 420,050 423,658 bearing

Demand, interest 70,749 71,411 72,156 72,811 73,812 bearing

Money market57,794 58,289 58,409 58,609 59,083

Savings 161,698 161,902 161,432 160,192 162,234

Time 37,172 39,560 43,637 48,292 52,572

Total 752,750 755,788 758,426 759,954 771,359



Average balance per account:

Demand, non-interest$26.1 $25.2 $24.8 $22.9 $22.4 bearing

Demand, interest 53.1 48.5 45.0 41.9 39.7 bearing

Money market134.6 129.7 129.3 122.4 121.2

Savings 14.4 13.7 13.1 11.9 11.4

Time 51.7 55.3 56.8 59.0 61.9

Total $35.7 $34.6 $34.1 $32.4 $32.0

^ Core deposits are defined as total deposits less time deposits greater than(1) $250,000 and all brokered deposits.

Umpqua Holdings Corporation

Credit Quality - Non-performing Assets

(Unaudited)

Quarter Ended % Change

(Dollars in Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year thousands) 2021 2021 2021 2020 2020 Quarterover Year

Non-performing assets:

Loans and leases on $24,152 $20,673 $29,216 $31,076 $26,425 17 % (9) %non-accrual status

Loans and leases past due27,490 29,144 25,612 36,361 50,269 (6) % (45)%90+ days and accruing^ (1)

Total non-performing 51,642 49,817 54,828 67,437 76,694 4 % (33)%loans and leases

Other real 1,868 181 1,405 1,810 2,369 932 % (21)%estate owned

Total non-performing $53,510 $49,998 $56,233 $69,247 $79,063 7 % (32)%assets



Performing restructured $9,849 $13,072 $9,921 $14,991 $15,819 (25)% (38)%loans and leases

Loans and leases past due$41,326 $30,646 $51,120 $72,047 $66,155 35 % (38)%31-89 days

Loans and leases past due 31-89 days to 0.19 %0.14 %0.23 %0.33 %0.29 % total loans and leases

Non-performing loans and leases to total0.24 %0.22 %0.25 %0.31 %0.34 % loans and leases ^(1)

Non-performing assets to total0.17 %0.17 %0.19 %0.24 %0.27 % assets^(1)

Excludes certain mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $20.0(1) million at September 30, 2020. There were no non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so at September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020.

Umpqua Holdings Corporation

Credit Quality - Allowance for Credit Losses

(Unaudited)

Quarter Ended % Change

(Dollars in Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year overthousands) 2021 2021 2021 2020 2020 QuarterYear

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of$279,887 $311,283 $328,401 $345,049 $356,745 (10)% (22) %period

(Recapture) provision for credit (16,132) (17,775) 526 3,104 1,785 (9) % (1,004)%losses on loans and leases

Charge-offs (10,373) (17,079) (20,915) (23,942) (16,646) (39)% (38) %

Recoveries 4,178 3,458 3,271 4,190 3,165 21 % 32 %

Net (6,195) (13,621) (17,644) (19,752) (13,481) (55)% (54) %charge-offs

Balance, end$257,560 $279,887 $311,283 $328,401 $345,049 (8) % (25) %of period

Reserve for unfunded commitments

Balance, beginning of$14,539 $19,760 $20,286 $24,306 $26,368 (26)% (45) %period

(Recapture) provision for credit (2,787) (5,221) (526) (4,020) (2,062) (47)% 35 %losses on unfunded commitments

Balance, end11,752 14,539 19,760 20,286 24,306 (19)% (52) %of period

Total Allowance $269,312 $294,426 $331,043 $348,687 $369,355 (9) % (27) %for credit losses (ACL)



Net charge-offs to average 0.11 %0.25 %0.33 %0.35 %0.24 % loans and leases (annualized)

Recoveries to gross 40.28 %20.25 %15.64 %17.50 %19.01 % charge-offs

ACLLL to loans and 1.17 %1.26 %1.40 %1.51 %1.54 % leases

ACL to loans1.23 %1.33 %1.49 %1.60 %1.65 % and leases

nm = not meaningful







Umpqua Holdings Corporation

Credit Quality - Allowance for Credit Losses

(Unaudited)

Nine Months Ended % Change

(Dollars in thousands) Sep 30, Sep 30, Year over Year 2021 2020

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of period $328,401 $157,629 108 %

Impact of adoption of CECL - 49,999 nm

Adjusted balance, beginning of 328,401 207,628 58 % period

(Recapture) provision for credit (33,381) 188,771 (118) % losses on loans and leases

Charge-offs (48,367) (60,554) (20) %

Recoveries 10,907 9,204 19 %

Net charge-offs (37,460) (51,350) (27) %

Balance, end of period $257,560 $345,049 (25) %

Reserve for unfunded commitments

Balance, beginning of period $20,286 $5,106 297 %

Impact of adoption of CECL - 3,238 nm

Adjusted balance, beginning of 20,286 8,344 143 % period

(Recapture) provision for credit (8,534) 15,962 (153) % losses on unfunded commitments

Balance, end of period 11,752 24,306 (52) %

Total Allowance for credit losses $269,312 $369,355 (27) % (ACL)



Net charge-offs to average loans 0.23 %0.31 % and leases (annualized)

Recoveries to gross charge-offs 22.55 %15.20 %

nm = not meaningful







Umpqua Holdings Corporation

Selected Ratios

(Unaudited)

Quarter Ended % Change

Sep 30,Jun 30,Mar 31,Dec 31,Sep 30,Seq. Year over 2021 2021 2021 2020 2020 QuarterYear

Average Rates:

Yield on loans held 3.15 %3.18 %2.75 %3.19 %3.13 %(0.03)0.02 for sale

Yield on loans and 4.02 %3.99 %4.02 %4.24 %3.96 %0.03 0.06 leases

Yield on taxable 1.90 %1.87 %1.86 %1.77 %1.56 %0.03 0.34 investments

Yield on tax-exempt 3.01 %3.02 %3.03 %3.08 %3.11 %(0.01)(0.10) investments ^ (1)

Yield on interest bearing cash 0.15 %0.11 %0.10 %0.10 %0.10 %0.04 0.05 and temporary investments

Total yield on earning 3.32 %3.35 %3.41 %3.64 %3.45 %(0.03)(0.13) assets ^(1)



Cost of interest 0.13 %0.18 %0.29 %0.38 %0.49 %(0.05)(0.36) bearing deposits

Cost of securities sold under agreements

to repurchase and fed funds0.07 %0.06 %0.08 %0.09 %0.09 %0.01 (0.02) purchased

Cost of 1.88 %1.62 %1.33 %1.18 %1.23 %0.26 0.65 borrowings

Cost of junior 3.18 %3.30 %3.60 %3.73 %4.03 %(0.12)(0.85) subordinated debentures

Total cost of interest 0.20 %0.27 %0.38 %0.49 %0.59 %(0.07)(0.39) bearing liabilities



Net interest 3.12 %3.08 %3.03 %3.15 %2.85 %0.04 0.27 spread ^(1)

Net interest 3.21 %3.20 %3.18 %3.35 %3.08 %0.01 0.13 margin ^(1)



Performance Ratios:

Return on average 1.40 %1.54 %1.49 %2.04 %1.68 %(0.14)(0.28) assets

Return on average 1.40 %1.55 %1.49 %2.04 %1.68 %(0.15)(0.28) tangible assets

Return on average 15.82%17.25%16.33%22.92%19.48%(1.43)(3.66) common equity

Return on average 15.88%17.33%16.43%23.07%19.62%(1.45)(3.74) tangible common equity

Efficiency ratio - 59.44%58.96%56.74%58.82%54.52%0.48 4.92 Consolidated

Efficiency 58.54%58.31%55.51%57.77%53.41%0.23 5.13 ratio - Bank

^(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)

Nine Months Ended % Change

Sep 30, 2021Sep 30, 2020Year over Year

Average Rates:

Yield on loans held for sale 2.99 %3.61 %(0.62)

Yield on loans and leases 4.01 %4.21 %(0.20)

Yield on taxable investments 1.88 %1.81 %0.07

Yield on tax-exempt investments ^3.02 %3.14 %(0.12) (1)

Yield on interest bearing cash 0.12 %0.38 %(0.26) and temporary investments

Total yield on earning assets ^ 3.36 %3.73 %(0.37) (1)



Cost of interest bearing deposits0.20 %0.73 %(0.53)

Cost of securities sold under agreements

to repurchase and fed funds 0.07 %0.25 %(0.18) purchased

Cost of borrowings 1.43 %1.43 %-

Cost of junior subordinated 3.35 %5.00 %(1.65) debentures

Total cost of interest bearing 0.28 %0.84 %(0.56) liabilities



Net interest spread ^(1) 3.08 %2.89 %0.19

Net interest margin^ (1) 3.20 %3.19 %0.01



Performance Ratios:

Return on average assets 1.48 %(7.67) %9.15

Return on average tangible assets1.48 %(7.83) %9.31

Return on average common equity 16.47 %(72.01) %88.48

Return on average tangible common16.55 %(89.45) %106.00 equity

Efficiency ratio - Consolidated 58.35 %249.26 %(190.91)

Efficiency ratio - Bank 57.42 %247.93 %(190.51)



^(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

Umpqua Holdings Corporation Average Balances

(Unaudited)

Quarter Ended % Change

(Dollars in Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year overthousands) 2021 2021 2021 2020 2020 QuarterYear

Temporary investments $3,224,846$2,835,474$2,483,451$2,066,572$1,827,81814 % 76 % and interest bearing cash

Investment securities, 3,436,895 3,210,771 2,945,896 2,850,550 2,797,547 7 % 23 % taxable

Investment securities, 245,904 247,282 252,741 245,997 237,165 (1) % 4 % tax-exempt

Loans held 465,805 468,960 703,557 696,688 669,646 (1) % (30)% for sale

Loans and 21,864,387 22,040,794 21,692,639 22,138,283 22,560,076 (1) % (3) % leases

Total interest 29,237,837 28,803,281 28,078,284 27,998,090 28,092,252 2 % 4 % earning assets

Goodwill and other 10,609 12,615 15,598 16,775 18,021 (16)% (41)% intangible assets, net

Total assets 30,614,374 30,156,017 29,392,490 29,396,311 29,533,871 2 % 4 %



Non-interest bearing 10,960,686 10,582,197 9,897,749 9,587,081 9,335,350 4 % 17 % demand deposits

Interest bearing 15,679,755 15,474,743 15,166,198 15,165,049 15,451,816 1 % 1 % deposits

Total 26,640,441 26,056,940 25,063,947 24,752,130 24,787,166 2 % 7 % deposits

Interest bearing 16,583,803 16,500,106 16,444,694 16,822,808 17,205,775 1 % (4) % liabilities



Shareholders' equity - 2,709,641 2,700,010 2,674,871 2,615,676 2,549,703 0 % 6 % common

Tangible common equity2,699,032 2,687,395 2,659,273 2,598,901 2,531,682 0 % 7 % ^(1)







Umpqua Holdings Corporation Average Balances

(Unaudited)

Nine Months Ended % Change

(Dollars in thousands) Sep 30, 2021Sep 30, 2020Year over Year

Temporary investments and $2,850,639$1,493,35291 %interest bearing cash

Investment securities, taxable 3,199,653 2,778,460 15 %

Investment securities, tax-exempt248,617 238,059 4 %

Loans held for sale 545,237 551,583 (1) %

Loans and leases 21,866,569 22,063,582 (1) %

Total interest earning assets 28,710,715 27,125,036 6 %

Goodwill and other intangible 12,922 605,548 (98) %assets, net

Total assets 30,058,769 29,149,758 3 %



Non-interest bearing demand 10,484,104 8,237,095 27 %deposits

Interest bearing deposits 15,442,113 15,649,765 (1) %

Total deposits 25,926,217 23,886,860 9 %

Interest bearing liabilities 16,510,044 17,377,259 (5) %



Shareholders' equity - common 2,694,968 3,105,611 (13) %

Tangible common equity ^(1) 2,682,046 2,500,063 7 %



Average tangible common equity is a non-GAAP financial measure. Average(1) 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)

Quarter Ended

September 30, 2021 June 30, 2021 September 30, 2020

Interest Average Interest Average Interest Average (Dollars in thousands) Average Income Yields Average Income Yields Average Income Yields Balance or or Balance or or Balance or or Expense Rates Expense Rates Expense Rates

INTEREST-EARNING ASSETS:

Loans held for sale $465,805 $3,672 3.15 %$468,960 $3,725 3.18 %$669,646 $5,248 3.13 %

Loans and leases (1) 21,864,387 220,731 4.02 %22,040,794 219,745 3.99 %22,560,076 224,209 3.96 %

Taxable securities 3,436,895 16,315 1.90 %3,210,771 15,024 1.87 %2,797,547 10,878 1.56 %

Non-taxable securities 245,904 1,848 3.01 %247,282 1,864 3.02 %237,165 1,845 3.11 %(2)

Temporary investments and3,224,846 1,237 0.15 %2,835,474 774 0.11 %1,827,818 474 0.10 %interest-bearing cash

Total interest-earning 29,237,837 $243,8033.32 %28,803,281 $241,1323.35 %28,092,252 $242,6543.45 %assets

Other assets 1,376,537 1,352,736 1,441,619

Total assets $30,614,374 $30,156,017 $29,533,871

INTEREST-BEARING LIABILITIES:

Interest-bearing demand $3,564,040 $468 0.05 %$3,385,336 $459 0.05 %$2,878,529 $573 0.08 %deposits

Money market deposits 7,800,144 1,492 0.08 %7,614,474 1,533 0.08 %7,179,705 2,284 0.13 %

Savings deposits 2,284,077 206 0.04 %2,171,865 154 0.03 %1,790,055 179 0.04 %

Time deposits 2,031,494 2,934 0.57 %2,303,068 4,870 0.85 %3,603,527 16,085 1.78 %

Total interest-bearing 15,679,755 5,100 0.13 %15,474,743 7,016 0.18 %15,451,816 19,121 0.49 %deposits

Repurchase agreements and496,822 88 0.07 %440,881 68 0.06 %378,844 84 0.09 %federal funds purchased

Borrowings 31,500 149 1.88 %214,670 866 1.62 %1,054,153 3,271 1.23 %

Junior subordinated 375,726 3,014 3.18 %369,812 3,042 3.30 %320,962 3,249 4.03 %debentures

Total interest-bearing 16,583,803 $8,351 0.20 %16,500,106 $10,992 0.27 %17,205,775 $25,725 0.59 %liabilities

Non-interest-bearing 10,960,686 10,582,197 9,335,350 deposits

Other liabilities 360,244 373,704 443,043

Total liabilities 27,904,733 27,456,007 26,984,168

Common equity 2,709,641 2,700,010 2,549,703

Total liabilities and $30,614,374 $30,156,017 $29,533,871 shareholders' equity

NET INTEREST INCOME $235,452 $230,140 $216,929

NET INTEREST SPREAD 3.12 % 3.08 % 2.85 %

NET INTEREST INCOME TO EARNING ASSETS OR NET 3.21 % 3.20 % 3.08 %INTEREST MARGIN (1), (2)

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

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of(2) approximately $377,000 for the three months ended September 30, 2021, as compared to $377,000 for June 30, 2021 and $355,000 for September 30, 2020.

Umpqua Holdings Corporation Average Rates and Balances

(Unaudited)

(dollars in Nine Months Ended thousands)

September 30, 2021 September 30, 2020

Interest Average Interest Average Average Income or Yields Average Income or Yields Balance Expense or Balance Expense or Rates Rates

INTEREST-EARNING ASSETS:

Loans held for sale $545,237 $12,242 2.99 %$551,583 $14,955 3.61 %

Loans and leases (1)21,866,569 656,772 4.01 %22,063,582 695,669 4.21 %

Taxable securities 3,199,653 45,049 1.88 %2,778,460 37,744 1.81 %

Non-taxable 248,617 5,627 3.02 %238,059 5,608 3.14 %securities (2)

Temporary investments and 2,850,639 2,635 0.12 %1,493,352 4,208 0.38 %interest-bearing cash

Total interest-earning 28,710,715 $722,3253.36 %27,125,036 $758,1843.73 %assets

Other assets 1,348,054 2,024,722

Total assets $30,058,769 $29,149,758

INTEREST-BEARING LIABILITIES:

Interest-bearing $3,359,865 $1,341 0.05 %$2,667,160 $5,264 0.26 %demand deposits

Money market 7,593,320 4,516 0.08 %7,187,615 18,080 0.34 %deposits

Savings deposits 2,152,667 523 0.03 %1,635,064 618 0.05 %

Time deposits 2,336,261 16,414 0.94 %4,159,926 61,671 1.98 %

Total interest-bearing 15,442,113 22,794 0.20 %15,649,765 85,633 0.73 %deposits

Repurchase agreements and 444,919 232 0.07 %363,957 673 0.25 %federal funds purchased

Borrowings 259,890 2,787 1.43 %1,041,181 11,156 1.43 %

Junior subordinated 363,122 9,108 3.35 %322,356 12,074 5.00 %debentures

Total interest-bearing 16,510,044 $34,921 0.28 %17,377,259 $109,5360.84 %liabilities

Non-interest-bearing10,484,104 8,237,095 deposits

Other liabilities 369,653 429,793

Total liabilities 27,363,801 26,044,147

Common equity 2,694,968 3,105,611

Total liabilities and shareholders' $30,058,769 $29,149,758 equity

NET INTEREST INCOME $687,404 $648,648

NET INTEREST SPREAD 3.08 % 2.89 %

NET INTEREST INCOME TO EARNING ASSETS OR 3.20 % 3.19 %NET INTEREST MARGIN (1), (2)



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

Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax(2) rate. The amount of such adjustment was an addition to recorded income of approximately $1.1 million for the nine months ended September 30, 2021, as compared to $1.0 million for the same period in 2020.

Umpqua Holdings Corporation Segments

(Unaudited)

Core Banking Quarter Ended % Change

(in Seq. Year thousands) Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Quarterover Year

Net interest $232,348 $226,915 $217,574 $230,430 $212,215 2 %9 %income

(Recapture) provision for(18,919) (22,996) - 29 (338) (18) %nm credit losses

Non-interest income

Gain on sale of debt - - 4 - - nm nm securities, net

(Loss) gain on equity (343) 4 (706) (173) (112) nm 206 %securities, net

Gain (loss) on swap 1,429 (4,481) 11,750 3,955 1,765 (132)%(19) %derivatives, net

Non-interest income 38,281 50,933 32,403 40,921 39,678 (25) %(4) %(excluding above items)

Total non-interest39,367 46,456 43,451 44,703 41,331 (15) %(5) %income

Non-interest expense

Exit and disposal 3,813 4,728 1,200 725 792 (19) %381 %costs

Non-interest expense 146,931 146,877 145,161 171,634 148,519 0 %(1) %(excluding above items)

Allocated expenses, 3,680 970 (790) (3,565) (2,976) 279 %(224)%net ^(1)

Total non-interest154,424 152,575 145,571 168,794 146,335 1 %6 %expense

Income before136,210 143,792 115,454 106,310 107,549 (5) %27 %income taxes

Provision (benefit) for33,945 35,630 28,106 (13,508) 20,988 (5) %62 %income taxes

Net income $102,265 $108,162 $87,348 $119,818 $86,561 (5) %18 %



Effective Tax25 %25 %24 %(13) %20 % Rate

Efficiency 57 %56 %56 %61 %58 % Ratio



Total assets $30,419,108 $29,720,182 $29,529,769 $28,438,813 $28,652,477 2 %6 %

Loans held $- $- $- $78,146 $- 0 %0 %for sale

Total loans $21,969,940 $22,143,739 $22,160,860 $21,779,367 $22,426,473 (1) %(2) %and leases

Total $26,510,938 $25,820,776 $25,425,339 $24,200,012 $24,102,498 3 %10 %deposits



Key Rates, end of period:

10 year CMT 1.52 %1.45 %1.74 %0.93 %0.69 %

FHLMC 30 year3.01 %2.98 %3.18 %2.67 %2.88 % fixed

nm = not meaningful



^(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment.







Umpqua Holdings Corporation Segments - Continued

(Unaudited)

Mortgage Quarter Ended % Change Banking

(in Seq. Year thousands) Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Quarterover Year

Net interest $2,726 $2,848 $3,857 $4,477 $4,359 (4) %(37) %income

Provision for- - - - - nm nm credit losses

Non-interest income

Residential mortgage banking revenue:

Origination 30,293 41,367 62,505 83,388 98,703 (27) %(69) %and sale

Servicing 9,172 9,120 9,087 9,497 8,796 1 %4 %

Change in fair value of MSR asset:

Changes due to collection/ realization (4,681) (4,366) (4,545) (4,431) (4,878) 7 %(4) %of expected cash flows over time

Changes due to valuation(634) (1,678) (2,014) (9,426) (12,244) (62) %(95) %inputs or assumptions

Non-interest income 188 176 316 229 216 7 %(13) %(excluding above items)

Total non-interest34,338 44,619 65,349 79,257 90,593 (23) %(62) %income

Non-interest expense

Non-interest33,009 37,795 41,231 38,953 40,896 (13) %(19) %expense

Allocated expenses, (3,680) (970) 790 3,565 2,976 279 %(224)%net ^(1)

Total non-interest29,329 36,825 42,021 42,518 43,872 (20) %(33) %expense

Income before7,735 10,642 27,185 41,216 51,080 (27) %(85) %income taxes

Provision for1,934 2,661 6,796 10,304 12,770 (27) %(85) %income taxes

Net income $5,801 $7,981 $20,389 $30,912 $38,310 (27) %(85) %



Effective Tax25 %25 %25 %25 %25 % Rate

Efficiency 79 %78 %61 %51 %46 % Ratio



Total assets $472,371 $564,783 $506,911 $796,362 $784,964 (16) %(40) %

Loans held $352,466 $429,052 $376,481 $688,079 $683,960 (18) %(48) %for sale

Total $397,459 $332,777 $461,494 $422,189 $567,285 19 %(30) %deposits



LHFS Production Statistics:

Closed loan volume 987,281 1,253,023 1,635,532 1,769,432 1,922,789 (21) %(49) %for-sale

Gain on sale 3.07 %3.30 %3.82 %4.71 %5.13 % margin

Direct LHFS $19,958 $25,459 $31,151 $33,210 $35,678 (22) %(44) %expense

Direct LHFS expenses as %2.02 %2.03 %1.90 %1.88 %1.86 % of volume



MSR Statistics:

Residential mortgage loans 12,853,291 12,897,032 13,030,467 13,026,720 12,964,361 0 %(1) %serviced for others

MSR, net $105,834 $102,699 $100,413 $92,907 $93,248 3 %13 %

MSR as % of serviced 0.82 %0.80 %0.77 %0.71 %0.72 % portfolio



Key Rates, end of period:

10 year CMT 1.52 %1.45 %1.74 %0.93 %0.69 %

FHLMC 30 year3.01 %2.98 %3.18 %2.67 %2.88 % fixed

nm = not meaningful

^ Represents the internal charge of centrally provided support services and(1) other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.

Umpqua Holdings Corporation Segments

(Unaudited)

(in thousands) Core Banking Mortgage Banking

Nine Months Ended % Change Nine Months Ended % Change

Sep 30, Sep 30, 2020 Year over YearSep 30, Sep 30, Year over Year 2021 2021 2020

Net interest $676,837 $636,566 6.33 % $9,431 $11,046 (14.62) % income

(Recapture) provision for (41,915) 204,832 (120.46)% - - nm credit losses

Non-interest income

Residential mortgage banking revenue:

Origination - - nm 134,165 224,831 (40.33) % and sale

Servicing - - nm 27,379 26,209 4.46 %

Change in fair value of MSR asset:

Changes due to collection/ realization of- - nm (13,592) (15,249) (10.87) % expected cash flows over time

Changes due to valuation - - nm (4,326) (43,997) (90.17) % inputs or assumptions

Gain on sale of debt 4 190 (97.89) % - - nm securities, net

(Loss) gain on equity (1,045) 942 (210.93)% - - nm securities, net

Gain (loss) on swap 8,698 (13,364) (165.09)% - - nm derivatives, net

Non-interest income 121,617 107,963 12.65 % 680 524 29.77 % (excluding above items)

Total non-interest 129,274 95,731 35.04 % 144,306 192,318 (24.96) % income

Non-interest expense

Goodwill - 1,784,936 (100.00)% - - nm Impairment

Exit and 9,741 1,864 422.59 % - - nm disposal costs

Non-interest expense 438,969 437,863 0.25 % 112,035 110,112 1.75 % (excluding above items)

Allocated expenses, net^3,860 (7,992) (148.30)% (3,860) 7,992 (148.30)% (1)

Total non-interest 452,570 2,216,671 (79.58) % 108,175 118,104 (8.41) % expense

Income (loss) before income 395,456 (1,689,206) (123.41)% 45,562 85,260 (46.56) % taxes

Provision for 97,681 48,889 99.80 % 11,391 21,315 (46.56) % income taxes

Net income $297,775 $(1,738,095) (117.13)% $34,171 $63,945 (46.56) % (loss)



Effective Tax 25 %(3) % 25 %25 % Rate

Efficiency 56 %302 % 70 %58 % Ratio



LHFS Production Statistics:

Closed loan 3,875,836 4,897,068 volume for-sale

Gain on sale 3.46 %4.59 % margin

Direct LHFS $76,568 $93,780 expense

Direct LHFS expenses as % 1.98 %1.92 % of volume

nm = not meaningful

^ Represents the internal charge of centrally provided support services and(1) other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.

1 "Non-GAAP" financial measure. A reconciliation to the comparable GAAP measurement is provided on page 4.2 "Non-GAAP" financial measure. A reconciliation to the comparable GAAP measurement is provided on page 4.

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SOURCE Umpqua Holdings Corporation