PR Newswire | Jan 19, 2022 04:16PM EST

01/19 15:15 CST

UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2021 RESULTSFourth quarter 2021 Results- Net income of $88.4 million, or $0.41 per common share- Non-PPP loan balances increased $929.5 million or 4.4%- Deposit balances decreased $313.7 million or 1.2%- Recapture of provision for credit losses of $0.7 million PORTLAND, Ore., Jan. 19, 2022

PORTLAND, Ore., Jan. 19, 2022 /PRNewswire/ --

$0.41 $88 12.94% 14.3%

Net earnings per dilutedNet income ($ in millions)Return on average tangibleTotal risk-based capital ratiocommon share common equity ("ROATCE")^1(estimated)

CEO Commentary

"Umpqua's fourth quarter results round out an outstanding year for the bank that is particularly commendable given the ongoing challenges faced by our associates, customers, and communities" said Cort O'Haver, President and CEO. "Non-PPP (Paycheck Protection Program) loan growth of $930 million marks the highest quarterly growth in the bank's history, and it highlights the success of multi-year initiatives that are further evidenced through core commercial fee growth and a continued reduction of our total cost of deposits to just six basis points. The quarter's growth demonstrates our ability to keep our teams focused on organically expanding our franchise and creating shareholder value while meticulously planning for our previously announced combination with Columbia Banking System."

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

FOURTH QUARTER HIGHLIGHTS



? Net interest income decreased by $1.7 million on a quarter-to-quarter basis due to lower income related to PPP Net Interest loan forgiveness as net interest income otherwise expanded. Income and NIM ? Net interest margin (NIM) of 3.15% was down six basis points from the prior period due to lower PPP fees. The impact was partially offset by higher average non-PPP loan balances and lower interest expense.



? Non-interest income increased by $9.0 million due to higherNon-Interest net mortgage banking revenue of $9.0 million given a write-up Income and of the mortgage servicing rights (MSR) asset. Expense ? Non-interest expense increased by $16.0 million due to merger-related expenses of $15.2 million.



? Net charge-offs remained low at 0.13% of average loans and leases (annualized). Credit ? A recapture of the provision for credit losses of Quality $0.7 million was recorded in the period as forecasted economic conditions improved. ? Non-performing assets to total assets remained at 0.17%, consistent with the prior period.



? Estimated total risk-based capital ratio of 14.3% and estimated Tier 1 risk-based capital ratio of 11.6%. Capital ? Paid a quarterly cash dividend of $0.21 per common share on November 30, 2021 to shareholders of record as of November 19, 2021.



? Completed 15 planned store consolidations during the quarter, bringing total Next Gen 2.0 store consolidations to Other Notable34. Items ? $3.0 million in exit disposal costs related to store consolidations and back-office lease exits.

4Q21 KEY FINANCIAL DATA



PERFORMANCE METRICS 4Q21 3Q21 4Q20

Return on average assets 1.13 % 1.40 % 2.04 %

Return on average tangible common 12.94 % 15.88 % 23.07 % equity

Net interest margin 3.15 % 3.21 % 3.35 %

Efficiency ratio - consolidated 63.10 % 59.44 % 58.82 %

Loan to deposit ratio 84.80 % 81.65 % 88.45 %



INCOME STATEMENT 4Q21 3Q21 4Q20 ($ in 000s, excl. per share data)

Net interest income $233,379 $235,074 $234,907

(Recapture) provision for credit ($736) ($18,919) $29 losses

Non-interest income $82,738 $73,705 $123,960

Non-interest expense $199,711 $183,753 $211,312

Earnings per common share - diluted$0.41 $0.49 $0.68

Dividends paid per share $0.21 $0.21 $0.21



BALANCE SHEET 4Q21 3Q21 4Q20

Total assets $30.6B $30.9B $29.2B

Loans and leases $22.6B $22.0B $21.8B

Total deposits $26.6B $26.9B $24.6B

Tangible book value per common $12.65 $12.52 $12.21 share^1

Book value per common share $12.69 $12.57 $12.28

Balance SheetTotal consolidated assets were $30.6 billion as of December 31, 2021, compared to $30.9 billion as of September 30, 2021 and $29.2 billion as of December 31, 2020. Including secured off-balance sheet lines of credit, total available liquidity was $15.3 billion as of December 31, 2021, representing 50% of total assets and 58% of total deposits.

Gross loans and leases were $22.6 billion as of December 31, 2021, an increase of $583.2 million from $22.0 billion as of September 30, 2021. The increase is primarily due to balanced, non-PPP loan growth of $929.5 million that substantially offset a $346.3 million decline in PPP balances as related loan forgiveness continued. Please refer to the additional loan tables in the Q4 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.

Total deposits were $26.6 billion as of December 31, 2021, a decrease of $313.7 million from $26.9 billion as of September 30, 2021. This decrease was primarily attributable to anticipated outflows related to the April 2021 sale of Umpqua Investments, a continued decline in personal certificates of deposit balances, and normal seasonal trends related to customer tax and escrow payments.

Net Interest IncomeNet interest income was $233.4 million for the fourth quarter of 2021, down $1.7 million from the prior quarter. The decrease is due to a $5.9 million reduction in PPP-related fee income accreted into interest income, with the effect partially offset by higher non-PPP loan income and higher investment securities income due to higher average balances in the quarter and a reduction in the cost of interest-bearing deposits.

The Company's net interest margin was 3.15% for the fourth quarter of 2021, down 6 basis points from 3.21% for the third quarter of 2021. The decrease is attributable to the aforementioned decline in PPP-related fees. Please refer to the Q4 2021 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.

Credit QualityThe allowance for credit losses was $261.2 million, or 1.16% of loans and leases, as of December 31, 2021, which was down from $269.3 million, or 1.23% of loans and leases, as of September 30, 2021. The recapture of provision for credit losses was $0.7 million for the fourth quarter of 2021, compared to a recapture of $18.9 million for the third quarter of 2021. The current quarter's modest recapture of provision reflects improvement in economic forecasts used in credit models that was largely offset by allowance requirements for new loan generation.

Net charge-offs as a percentage of average loans and leases increased by two basis points from the prior quarter to 0.13% of average loans and leases for the fourth quarter of 2021 (annualized). Net charge-off activity within the FinPac portfolio remained below its historical average for the second consecutive quarter. As of December 31, 2021, non-performing assets were 0.17% of total assets, compared to 0.17% as of September 30, 2021 and 0.24% as of December 31, 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 $0.7 million of the allowance for credit losses in the current period.

Non-interest IncomeNon-interest income was $82.7 million for the fourth quarter of 2021, up $9.0 million from the prior quarter and driven primarily by the increase in net mortgage banking revenue. As detailed in our segment disclosures, non-interest income for the Core Banking segment includes a fair value loss of $3.4 million for the fourth quarter of 2021, driven by an increase in long-term interest rates and their effect on fair value adjustments related to investment securities, swap derivatives, and loans carried at fair value. This compares to a fair value gain of $4.5 million in the third quarter of 2021, and the $8.0 million decline in fair value change between periods from these specific items was primarily driven by a $6.1 million decline in fair value change for loans carried at fair value, which is captured in other income. Please refer to the Q4 2021 Earnings Presentation for additional details related to other non-interest income.

Revenue from the origination and sale of residential mortgages was $23.6 million for the fourth quarter of 2021, a decrease of $6.7 million from the prior quarter. This decline reflects a sequential quarter decrease of $116.0 million or 11.8% in for-sale mortgage origination volume given anticipated seasonal trends and a decrease of 36 basis points in the home lending gain on sale margin to 2.71% for the fourth quarter of 2021 due to a seasonal decline in the locked pipeline. Interest rate movements favorably impacted valuation of the MSR asset, resulting in a net write-up during the quarter of $10.1 million, which includes a $15.4 million fair value gain related to model inputs. Of the current quarter's mortgage production, 54% related to purchase activity, compared to 61% for the prior quarter and 48% for the same period in the prior year.

Non-interest ExpenseNon-interest expense was $199.7 million for the fourth quarter of 2021, an increase of $16.0 million from the prior quarter level. The current quarter includes $15.2 million in merger-related expenses and $3.0 million in exit and disposal costs related to store consolidations and back-office lease exits. Please refer to the Q4 2021 Earnings Presentation for quarterly expense change details.

CapitalAs of December 31, 2021, the Company's book value per common share increased to $12.69 from $12.57 in the prior quarter, and its tangible book value per common share2 increased to $12.65 from $12.52 in the prior quarter.

The Company's estimated total capital to risk-weighted assets ratio was 14.3% and its estimated Tier 1 capital to risk-weighted assets ratio was 11.6% as of December 31, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of December 31, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

Segment DisclosuresSegment 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 MeasuresIn 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).

(Dollars in thousands, except per share data) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020

Total shareholders' equity $ 2,749,270 $ 2,722,379 $ 2,766,316 $ 2,681,869 $ 2,704,577

Subtract:

Goodwill - - - 2,715 2,715

Other intangible assets, net 8,840 9,970 11,100 12,230 13,360

Tangible common shareholders' equity $ 2,740,430 $ 2,712,409 $ 2,755,216 $ 2,666,924 $ 2,688,502

Total assets $ 30,640,936 $ 30,891,479 $ 30,284,965 $ 30,036,680 $ 29,235,175

Subtract:

Goodwill - - - 2,715 2,715

Other intangible assets, net 8,840 9,970 11,100 12,230 13,360

Tangible assets $ 30,632,096 $ 30,881,509 $ 30,273,865 $ 30,021,735 $ 29,219,100

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



Total shareholders' equity to total assets 8.97 % 8.81 % 9.13 % 8.93 % 9.25 % ratio

Tangible common equity ratio 8.95 % 8.78 % 9.10 % 8.88 % 9.20 %

Book value per common share $ 12.69$ 12.57$ 12.54$ 12.16$ 12.28

Tangible book value per common share $ 12.65$ 12.52$ 12.49$ 12.10$ 12.21

About Umpqua Holdings CorporationUmpqua 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. For more information, visit www.umpquabank.com.

Earnings Conference Call InformationThe Company will host its fourth quarter 2021 earnings conference call on Thursday, January 20, 2022, 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 fourth quarter and full year 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: 3384189. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 3384189. 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 StatementsThis 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, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, over except per 2021 2021 2021 2021 2020 QuarterYear share data)

Interest income:

Loans and $ 221,501 $ 224,403 $ 223,470 $ 221,141 $ 240,815 (1) % (8) %leases

Interest and dividends on investments:

Taxable 16,566 16,102 14,619 13,112 11,951 3 39 % %

Exempt from federal 1,456 1,470 1,487 1,534 1,523 (1) % (4) %income tax

Dividends 102 213 405 598 659 (52)% (85)%

Temporary investments and interest1,229 1,237 774 624 531 (1) % 131 %bearing deposits

Total interest 240,854 243,425 240,755 237,009 255,479 (1) % (6) %income

Interest expense:

Deposits 4,357 5,100 7,016 10,678 14,567 (15)% (70)%

Securities sold under agreement to repurchase 48 88 68 76 93 (45)% (48)%and federal funds purchased

Borrowings 51 149 866 1,772 2,765 (66)% (98)%

Junior subordinated3,019 3,014 3,042 3,052 3,147 0 % (4) %debentures

Total interest 7,475 8,351 10,992 15,578 20,572 (10)% (64)%expense

Net interest233,379 235,074 229,763 221,431 234,907 (1) % (1) %income

(Recapture) provision (736) (18,919) (22,996) - 29 (96)% nm for credit losses

Non-interest income:

Service charges on 11,188 10,941 10,310 9,647 10,202 2 % 10 %deposits

Card-based 9,355 9,111 10,274 7,374 7,754 3 % 21 %fees

Brokerage 31 31 1,135 3,915 4,093 0 % (99)%revenue

Residential mortgage 43,185 34,150 44,443 65,033 79,028 26 % (45)%banking revenue, net

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

(Loss) gain on equity (466) (343) 4 (706) (173) 36 % 169 %securities, net

Gain on loan and lease 4,816 4,208 5,318 1,373 3,374 14 % 43 %sales, net

BOLI income 2,101 2,038 2,092 2,071 2,067 3 % 2

Other income12,524 13,569 17,499 20,089 17,615 (8) % (29)%

Total non-interest82,738 73,705 91,075 108,800 123,960 12 % (33)%income

Non-interest expense:

Salaries and employee 117,477 117,636 121,573 124,134 132,460 0 % (11)%benefits

Occupancy and 34,310 33,944 34,657 34,635 41,758 1 % (18)%equipment, net

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

FDIC 2,896 2,136 1,607 2,599 3,014 36 % (4) %assessments

Merger related 15,183 - - - - nm nm expenses

Other 28,715 28,907 30,433 25,094 32,834 (1) % (13)%expenses

Total non-interest199,711 183,753 189,400 187,592 211,312 9 % (5) %expense

Income before provision 117,142 143,945 154,434 142,639 147,526 (19)% (21)%for income taxes

Provision (benefit) 28,788 35,879 38,291 34,902 (3,204) (20)% nm for income taxes

Net income $ 88,354 $ 108,066 $ 116,143 $ 107,737 $ 150,730 (18)% (41)%



Weighted average 216,624 218,416 220,593 220,367 220,225 (1) % (2) %basic shares outstanding

Weighted average diluted 217,356 218,978 221,022 220,891 220,663 (1) % (1) %shares outstanding

Earnings per common share$ 0.41$ 0.49$ 0.53$ 0.49$ 0.68(16)% (40)%- basic

Earnings per common share$ 0.41$ 0.49$ 0.53$ 0.49$ 0.68(16)% (40)%- diluted



nm = not meaningful

Umpqua Holdings Corporation

Consolidated Statements of Operations

(Unaudited)



Year Ended % Change

(In thousands, Year overexcept per share Dec 31, 2021 Dec 31, 2020 Year data)

Interest income:

Loans and leases $ 890,515 $ 951,439 (6) %

Interest and dividends on investments:

Taxable 60,399 47,739 27 %

Exempt from federal income 5,947 6,095 (2) %tax

Dividends 1,318 2,615 (50) %

Temporary investments and 3,864 4,739 (18) %interest bearing deposits

Total interest 962,043 1,012,627 (5) %income

Interest expense:

Deposits 27,151 100,200 (73) %

Securities sold under agreement to repurchase and280 766 (63) %federal funds purchased

Borrowings 2,838 13,921 (80) %

Junior subordinated 12,127 15,221 (20) %debentures

Total interest 42,396 130,108 (67) %expense

Net interest 919,647 882,519 4 %income

(Recapture) provision for (42,651) 204,861 (121) %credit losses

Non-interest income:

Service charges 42,086 40,838 3 %on deposits

Card-based fees 36,114 28,190 28 %

Brokerage revenue5,112 15,599 (67) %

Residential mortgage banking 186,811 270,822 (31) %revenue, net

Gain on sale of debt securities, 8 190 (96) %net

(Loss) gain on equity (1,511) 769 (296) %securities, net

Gain on loan and 15,715 6,707 134 %lease sales, net

BOLI income 8,302 8,399 (1) %

Other income 63,681 40,495 57 %

Total non-interest 356,318 412,009 (14) %income

Non-interest expense:

Salaries and 480,820 479,247 0 %employee benefits

Occupancy and 137,546 151,650 (9) %equipment, net

Intangible 4,520 4,986 (9) %amortization

FDIC assessments 9,238 12,516 (26) %

Merger related 15,183 - nm expenses

Goodwill - 1,784,936 nm impairment

Other expenses 113,149 112,752 0 %

Total non-interest 760,456 2,546,087 (70) %expense

Income (loss) before provision 558,160 (1,456,420) (138) %for income taxes

Provision for 137,860 67,000 106 %income taxes

Net income (loss)$ 420,300 $ (1,523,420) (128) %



Weighted average basic shares 219,032 220,218 (1) %outstanding

Weighted average diluted shares 219,581 220,218 0 %outstanding

Earnings per common share - $ 1.92$ (6.92)(128) %basic

Earnings per common share - $ 1.91$ (6.92)(128) %diluted



nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets (Unaudited)



% Change

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

Assets:

Cash and due $ 222,015$ 395,555$ 397,526$ 379,361$ 370,219 (44)% (40)%from banks

Interest bearing cash 2,539,606 3,349,034 2,688,285 2,861,820 2,202,962 (24)% 15 %and temporary investments

Investment securities:

Equity and other, at 81,214 81,575 82,099 82,771 83,077 0 % (2) %fair value

Available for sale, at fair3,870,435 3,723,171 3,473,950 3,167,825 2,932,558 4 % 32 %value

Held to maturity, at 2,744 2,795 2,876 2,954 3,034 (2) % (10)%amortized cost

Loans held 353,105 352,466 429,052 376,481 766,225 0 % (54)%for sale

Loans and 22,553,180 21,969,940 22,143,739 22,160,860 21,779,367 3 % 4 %leases

Allowance for credit losses(248,412) (257,560) (279,887) (311,283) (328,401) (4) % (24)%on loans and leases

Net loans and22,304,768 21,712,380 21,863,852 21,849,577 21,450,966 3 % 4 %leases

Restricted equity 10,916 10,946 15,247 22,057 41,666 0 % (74)%securities

Premises and equipment, 171,125 172,624 172,546 176,571 178,050 (1) % (4) %net

Operating lease 82,366 88,379 95,030 100,643 104,937 (7) % (22)%right-of-use assets

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

Other intangible 8,840 9,970 11,100 12,230 13,360 (11)% (34)%assets, net

Residential mortgage servicing 123,615 105,834 102,699 100,413 92,907 17 % 33 %rights, at fair value

Bank owned life 327,745 325,646 324,998 322,867 323,470 1 % 1 %insurance

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

Other assets 542,442 552,702 625,705 567,490 669,029 (2) % (19)%

Total assets $ 30,640,936$ 30,891,479$ 30,284,965$ 30,036,680$ 29,235,175(1) % 5 %

Liabilities:

Deposits $ 26,594,685$ 26,908,397$ 26,153,553$ 25,886,833$ 24,622,201(1) % 8 %

Securities sold under 492,247 467,760 480,302 420,402 375,384 5 % 31 %agreements to repurchase

Borrowings 6,329 6,367 111,405 281,444 771,482 (1) % (99)%

Junior subordinated 293,081 299,508 287,723 281,580 255,217 (2) % 15 %debentures, at fair value

Junior subordinated debentures, 88,041 88,098 88,155 88,212 88,268 0 % 0 %at amortized cost

Operating lease 95,427 100,557 106,195 109,014 113,593 (5) % (16)%liabilities

Deferred tax liability, 4,353 - 2,497 - 5,441 nm (20)%net

Other 317,503 298,413 288,819 287,326 299,012 6 % 6 %liabilities

Total 27,891,666 28,169,100 27,518,649 27,354,811 26,530,598 (1) % 5 %liabilities

Shareholders' equity:

Common stock 3,444,849 3,442,085 3,517,641 3,515,248 3,514,599 0 % (2) %

Accumulated (697,338) (739,915) (801,954) (871,511) (932,767) (6) % (25)%deficit

Accumulated other 1,759 20,209 50,629 38,132 122,745 (91)% (99)%comprehensive income

Total shareholders'2,749,270 2,722,379 2,766,316 2,681,869 2,704,577 1 % 2 %equity

Total liabilities and $ 30,640,936$ 30,891,479$ 30,284,965$ 30,036,680$ 29,235,175(1) % 5 %shareholders' equity



Common shares outstanding 216,626 216,622 220,626 220,491 220,226 0 % (2) %at period end

Book value $ $ $ $ $ per common 12.69 12.57 12.54 12.16 12.28 1 % 3 %share

Tangible book$ $ $ $ $ value per 12.65 12.52 12.49 12.10 12.21 1 % 4 %common share

Tangible equity - $ 2,740,430 $ 2,712,409 $ 2,755,216 $ 2,666,924 $ 2,688,502 1 % 2 %common

Tangible common equity8.95 % 8.78 % 9.10 % 8.88 % 9.20 % 0.17 (0.25)to tangible assets

Umpqua Holdings Corporation Loan & Lease Portfolio (Unaudited)



(Dollars in Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 % Change thousands)

Year Amount Amount Amount Amount Amount Seq. Quarterover Year

Loans and leases:

Commercial real estate:

Non-owner occupied $ 3,786,887 $ 3,561,764 $ 3,580,386 $ 3,455,773 $ 3,505,802 6 % 8 %term, net

Owner occupied 2,332,422 2,330,338 2,398,326 2,358,169 2,333,945 0 % 0 %term, net

Multifamily,4,051,202 3,813,024 3,553,704 3,421,320 3,349,196 6 % 21 %net

Construction & 890,338 882,778 857,866 876,297 828,478 1 % 7 %development, net

Residential development,206,990 177,148 193,904 190,841 192,761 17 % 7 %net

Commercial:

Term, net^ 3,008,473 3,159,466 3,748,269 4,350,763 4,024,467 (5) % (25)%(1)

Lines of credit & 910,733 930,350 908,518 825,162 862,760 (2) % 6 %other, net

Leases & equipment 1,467,676 1,457,248 1,437,372 1,420,977 1,456,630 1 % 1 %finance, net

Residential:

Mortgage, 4,517,266 4,330,860 4,145,432 3,958,644 3,871,906 4 % 17 %net

Home equity loans & 1,197,170 1,133,823 1,118,278 1,097,168 1,136,064 6 % 5 %lines, net

Consumer 184,023 193,141 201,684 205,746 217,358 (5) % (15)%& other, net

Total loans and leases, net of $ 22,553,180$ 21,969,940$ 22,143,739$ 22,160,860$ 21,779,3673 % 4 %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 (48) % (78)%balance 380,440



Loan and leases mix:

Commercial real estate:

Non-owner occupied 17 % 16 % 16 % 15 % 16 % term, net

Owner occupied 10 % 11 % 11 % 11 % 11 % term, net

Multifamily,18 % 17 % 16 % 15 % 15 % net

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

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

Commercial:

Term, net 13 % 14 % 17 % 20 % 18 %

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

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

Residential:

Mortgage, 20 % 20 % 19 % 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)



(Dollars in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 % Change

Seq. Year Amount Amount Amount Amount Amount Quarterover Year

Deposits:

Demand, non-interest bearing $ 11,023,724 $ 11,121,127 $ 10,718,921 $ 10,500,482 $ 9,632,773 (1)% 14 %

Demand, interest bearing 3,774,937 3,758,019 3,466,251 3,244,624 3,051,487 0 % 24 %

Money market 7,611,718 7,780,442 7,559,621 7,554,798 7,173,920 (2)% 6 %

Savings 2,375,723 2,325,929 2,221,524 2,109,211 1,912,752 2 % 24 %

Time 1,808,583 1,922,880 2,187,236 2,477,718 2,851,269 (6)% (37)%

Total $ 26,594,685 $ 26,908,397 $ 26,153,553 $ 25,886,833 $ 24,622,201 (1)% 8 %



Total core deposits^ (1) $ 25,964,358 $ 26,029,814 $ 25,122,851 $ 24,740,621 $ 23,298,561 0 % 11 %



Deposit mix:

Demand, non-interest bearing 41 % 41 % 41 % 41 % 39 %

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

Money market 29 % 29 % 29 % 29 % 29 %

Savings 9 % 9 % 9 % 8 % 8 %

Time 7 % 7 % 8 % 10 % 12 %

Total 100% 100% 100% 100% 100%



Number of open accounts:

Demand, non-interest bearing 428,181 425,337 424,626 422,792 420,050

Demand, interest bearing 66,010 70,749 71,411 72,156 72,811

Money market 57,222 57,794 58,289 58,409 58,609

Savings 160,449 161,698 161,902 161,432 160,192

Time 35,665 37,172 39,560 43,637 48,292

Total 747,527 752,750 755,788 758,426 759,954



Average balance per account:

Demand, non-interest bearing $ 25.7$ 26.1$ 25.2$ 24.8$ 22.9

Demand, interest bearing 57.2 53.1 48.5 45.0 41.9

Money market 133.0 134.6 129.7 129.3 122.4

Savings 14.8 14.4 13.7 13.1 11.9

Time 50.7 51.7 55.3 56.8 59.0

Total $ 35.6$ 35.7$ 34.6$ 34.1$ 32.4



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

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



Quarter Ended % Change

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

Non-performing assets:

Loans and leases on $ 18,865$ 24,152$ 20,673$ 29,216$ 31,076(22)% (39) %non-accrual status

Loans and leases past 32,336 27,490 29,144 25,612 36,361 18 % (11) %due 90+ days and accruing

Total non-performing51,201 51,642 49,817 54,828 67,437 (1) % (24) %loans and leases

Other real 1,868 1,868 181 1,405 1,810 0 % 3 %estate owned

Total non-performing$ 53,069$ 53,510$ 49,998$ 56,233$ 69,247(1) % (23) %assets



Performing restructured $ $ $ 13,072$ $ 14,991(32)% (55) %loans and 6,694 9,849 9,921 leases

Loans and leases past $ 31,680$ 41,326$ 30,646$ 51,120$ 72,047(23)% (56) %due 31-89 days

Loans and leases past due 31-89 days0.14 % 0.19 % 0.14 % 0.23 % 0.33 % to total loans and leases

Non-performing loans and leases to 0.23 % 0.24 % 0.22 % 0.25 % 0.31 % total loans and leases

Non-performing assets to 0.17 % 0.17 % 0.17 % 0.19 % 0.24 % total assets

Umpqua Holdings Corporation Credit Quality - Allowance for Credit Losses (Unaudited)



Quarter Ended % Change

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

Allowance for credit losses on loans and leases (ACLLL)

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

(Recapture) provision for credit losses(1,751) (16,132) (17,775) 526 3,104 (89) %(156) %on loans and leases

Charge-offs (10,930) (10,373) (17,079) (20,915) (23,942) 5 %(54) %

Recoveries 3,533 4,178 3,458 3,271 4,190 (15) %(16) %

Net (7,397) (6,195) (13,621) (17,644) (19,752) 19 %(63) %charge-offs

Balance, end $ 248,412$ 257,560$ 279,887$ 311,283$ 328,401(4) %(24) %of period

Reserve for unfunded commitments

Balance, $ $ $ $ $ beginning of 11,752 14,539 19,760 20,286 24,306 (19) %(52) %period

Provision (recapture) for credit 1,015 (2,787) (5,221) (526) (4,020) (136)%(125) %losses on unfunded commitments

Balance, end 12,767 11,752 14,539 19,760 20,286 9 %(37) %of period

Total Allowance for$ 261,179$ 269,312$ 294,426$ 331,043$ 348,687(3) %(25) %credit losses (ACL)



Net charge-offs to average 0.13 %0.11 %0.25 %0.33 %0.35 % loans and leases (annualized)

Recoveries to gross 32.32 %40.28 %20.25 %15.64 %17.50 % charge-offs

ACLLL to loans and 1.10 %1.17 %1.26 %1.40 %1.51 % leases

ACL to loans 1.16 %1.23 %1.33 %1.49 %1.60 % and leases

Umpqua Holdings Corporation Credit Quality - Allowance for Credit Losses (Unaudited)



Year Ended % Change

(Dollars in thousands) Dec 31, 2021 Dec 31, 2020 Year over Year

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of $ 328,401$ 157,629108 % period

Impact of adoption of - 49,999 nm CECL

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

(Recapture) provision for credit losses on loans (35,132) 191,875 (118) % and leases

Charge-offs (59,297) (84,496) (30) %

Recoveries 14,440 13,394 8 %

Net charge-offs (44,857) (71,102) (37) %

Balance, end of period $ 248,412$ 328,401(24) %

Reserve for unfunded commitments

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

Impact of adoption of - 3,238 nm CECL

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

(Recapture) provision for credit losses on unfunded(7,519) 11,942 (163) % commitments

Balance, end of period 12,767 20,286 (37) %

Total Allowance for $ 261,179$ 348,687(25) % credit losses (ACL)



Net charge-offs to 0.20 % 0.32 % average loans and leases

Recoveries to gross 24.35 % 15.85 % charge-offs

nm = not meaningful

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



Quarter Ended % Change

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

Average Rates:

Yield on loans held3.18% 3.15% 3.18% 2.75% 3.19% 0.03 (0.01) for sale

Yield on loans and 3.94% 4.02% 3.99% 4.02% 4.24% (0.08) (0.30) leases

Yield on taxable 1.81% 1.90% 1.87% 1.86% 1.77% (0.09) 0.04 investments

Yield on tax-exempt2.96% 3.01% 3.02% 3.03% 3.08% (0.05) (0.12) investments ^(1)

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

Total yield on 3.25% 3.32% 3.35% 3.41% 3.64% (0.07) (0.39) earning assets^ (1)



Cost of interest 0.11% 0.13% 0.18% 0.29% 0.38% (0.02) (0.27) bearing deposits

Cost of securities sold under agreements

to repurchase and 0.04% 0.07% 0.06% 0.08% 0.09% (0.03) (0.05) fed funds purchased

Cost of borrowings 3.19% 1.88% 1.62% 1.33% 1.18% 1.31 2.01

Cost of junior subordinated 3.09% 3.18% 3.30% 3.60% 3.73% (0.09) (0.64) debentures

Total cost of interest bearing 0.18% 0.20% 0.27% 0.38% 0.49% (0.02) (0.31) liabilities



Net interest spread3.07% 3.12% 3.08% 3.03% 3.15% (0.05) (0.08) ^(1)

Net interest margin3.15% 3.21% 3.20% 3.18% 3.35% (0.06) (0.20) ^(1)



Performance Ratios:

Return on average 1.13% 1.40% 1.54% 1.49 %2.04% (0.27) (0.91) assets

Return on average 1.14% 1.40% 1.55% 1.49 %2.04% (0.26) (0.90) tangible assets

Return on average 12.90%15.82%17.25%16.33%22.92%(2.92) (10.02)common equity

Return on average tangible common 12.94%15.88%17.33%16.43%23.07%(2.94) (10.13)equity

Efficiency ratio - 63.10%59.44%58.96%56.74%58.82%3.66 4.28 Consolidated

Efficiency ratio - 62.35%58.54%58.31%55.51%57.77%3.81 4.58 Bank



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

Umpqua Holdings Corporation

Selected Ratios

(Unaudited)



Year Ended % Change

Dec 31, 2021Dec 31, 2020Year over Year

Average Rates:

Yield on loans held for sale 3.03% 3.49% (0.46)

Yield on loans and leases 3.99% 4.22% (0.23)

Yield on taxable investments 1.86% 1.80% 0.06

Yield on tax-exempt investments^ 3.00% 3.12% (0.12) (1)

Yield on interest bearing cash 0.13% 0.29% (0.16) and temporary investments

Total yield on earning assets ^ 3.33% 3.71% (0.38) (1)



Cost of interest bearing deposits0.18% 0.65% (0.47)

Cost of securities sold under agreements

to repurchase and fed funds 0.06% 0.21% (0.15) purchased

Cost of borrowings 1.45% 1.37% 0.08

Cost of junior subordinated 3.28% 4.67% (1.39) debentures

Total cost of interest bearing 0.26% 0.75% (0.49) liabilities



Net interest spread^ (1) 3.07% 2.96% 0.11

Net interest margin^ (1) 3.18% 3.23% (0.05)



Performance Ratios:

Return on average assets 1.39 % (5.22%) 6.61

Return on average tangible assets1.39 % (5.30%) 6.69

Return on average common equity 15.56% (51.08%) 66.64

Return on average tangible common15.63% (60.34%) 75.97 equity

Efficiency ratio - Consolidated 59.53% 196.47% (136.94)

Efficiency ratio - Bank 58.65% 195.33% (136.68)



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

Temporary investments $ 3,190,380$ 3,224,846$ 2,835,474$ 2,483,451$ 2,066,572(1) % 54 %and interest bearing cash

Investment securities, 3,681,650 3,436,895 3,210,771 2,945,896 2,850,550 7 % 29 %taxable

Investment securities, 247,183 245,904 247,282 252,741 245,997 1 % 0 %tax-exempt

Loans held 366,043 465,805 468,960 703,557 696,688 (21)% (47)%for sale

Loans and 22,098,818 21,864,387 22,040,794 21,692,639 22,138,283 1 % 0 %leases

Total interest 29,584,074 29,237,837 28,803,281 28,078,284 27,998,090 1 % 6 %earning assets

Goodwill and other 9,491 10,609 12,615 15,598 16,775 (11)% (43)%intangible assets, net

Total assets 30,886,378 30,614,374 30,156,017 29,392,490 29,396,311 1 % 5 %



Non-interest bearing 11,219,766 10,960,686 10,582,197 9,897,749 9,587,081 2 % 17 %demand deposits

Interest bearing 15,690,870 15,679,755 15,474,743 15,166,198 15,165,049 0 % 3 %deposits

Total 26,910,636 26,640,441 26,056,940 25,063,947 24,752,130 1 % 9 %deposits

Interest bearing 16,569,585 16,583,803 16,500,106 16,444,694 16,822,808 0 % (2) %liabilities



Shareholders' equity - 2,717,753 2,709,641 2,700,010 2,674,871 2,615,676 0 % 4 %common

Tangible common equity2,708,262 2,699,032 2,687,395 2,659,273 2,598,901 0 % 4 %^ (1)

Umpqua Holdings Corporation Average Balances

(Unaudited)

Year Ended % Change

Year (Dollars in thousands) Dec 31, 2021 Dec 31, 2020 over Year

Temporary investments and $ 2,936,273$ 1,637,44079 %interest bearing cash

Investment securities, 3,321,142 2,796,581 19 %taxable

Investment securities, 248,256 240,054 3 %tax-exempt

Loans held for sale 500,070 588,058 (15)%

Loans and leases 21,925,108 22,082,359 (1) %

Total interest earning 28,930,849 27,344,492 6 %assets

Goodwill and other 12,057 457,550 (97)%intangible assets, net

Total assets 30,267,372 29,211,733 4 %



Non-interest bearing demand10,669,531 8,576,436 24 %deposits

Interest bearing deposits 15,504,814 15,527,924 0 %

Total deposits 26,174,345 24,104,360 9 %

Interest bearing 16,525,052 17,237,888 (4) %liabilities



Shareholders' equity - 2,700,711 2,982,458 (9) %common

Tangible common equity ^(1)2,688,654 2,524,908 6 %



^(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)

Quarter Ended

December 31, 2021 September 30, 2021 December 31, 2020

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

INTEREST-EARNING ASSETS:

Loans held for sale $ 366,043$ 2,907 3.18% $ 465,805$ 3,672 3.15% $ 696,688$ 5,554 3.19%

Loans and leases (1) 22,098,818 218,594 3.94% 21,864,387 220,731 4.02% 22,138,283 235,261 4.24%

Taxable securities 3,681,650 16,668 1.81% 3,436,895 16,315 1.90% 2,850,550 12,610 1.77%

Non-taxable 247,183 1,831 2.96% 245,904 1,848 3.01% 245,997 1,893 3.08% securities (2)

Temporary investments and interest-bearing 3,190,380 1,229 0.15% 3,224,846 1,237 0.15% 2,066,572 531 0.10% cash

Total interest-earning 29,584,074 $ 241,229 3.25% 29,237,837 $ 243,803 3.32% 27,998,090 $ 255,849 3.64% assets

Other assets 1,302,304 1,376,537 1,398,221

Total assets $ 30,886,378 $ 30,614,374 $ 29,396,311

INTEREST-BEARING LIABILITIES:

Interest-bearing $ 3,765,212 $ 5240.06% $ 3,564,040 $ 4680.05% $ 3,014,292 $ 4480.06% demand deposits

Money market deposits7,717,844 1,448 0.07% 7,800,144 1,492 0.08% 7,210,906 1,731 0.10%

Savings deposits 2,342,865 206 0.03% 2,284,077 206 0.04% 1,882,866 183 0.04%

Time deposits 1,864,949 2,179 0.46% 2,031,494 2,934 0.57% 3,056,985 12,205 1.59%

Total interest-bearing 15,690,870 4,357 0.11% 15,679,755 5,100 0.13% 15,165,049 14,567 0.38% deposits

Repurchase agreements and federal funds 484,891 48 0.04% 496,822 88 0.07% 388,361 93 0.09% purchased

Borrowings 6,353 51 3.19% 31,500 149 1.88% 934,006 2,765 1.18%

Junior subordinated 387,471 3,019 3.09% 375,726 3,014 3.18% 335,392 3,147 3.73% debentures

Total interest-bearing 16,569,585 $ 7,475 0.18% 16,583,803 $ 8,351 0.20% 16,822,808 $ 20,572 0.49% liabilities

Non-interest-bearing 11,219,766 10,960,686 9,587,081 deposits

Other liabilities 379,274 360,244 370,746

Total liabilities 28,168,625 27,904,733 26,780,635

Common equity 2,717,753 2,709,641 2,615,676

Total liabilities and$ 30,886,378 $ 30,614,374 $ 29,396,311 shareholders' equity

NET INTEREST INCOME $ 233,754 $ 235,452 $ 235,277

NET INTEREST SPREAD 3.07% 3.12% 3.15%

NET INTEREST INCOME TO EARNING ASSETS OR 3.15% 3.21% 3.35% NET INTEREST MARGIN (1), (2)



(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. The amount of such adjustment was an addition to recorded income of approximately $375,000 for the three months ended December 31, 2021 as compared to $377,000 for September 30, 2021 and $370,000 for December 31, 2020.

Umpqua Holdings Corporation Average Rates and Balances

(Unaudited)

(dollars in Year Ended thousands)

December 31, 2021 December 31, 2020

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

INTEREST-EARNING ASSETS:

Loans held for sale $ 500,070$ 15,149 3.03% $ 588,058$ 20,509 3.49%

Loans and leases (1) 21,925,108 875,366 3.99% 22,082,359 930,930 4.22%

Taxable securities 3,321,142 61,717 1.86% 2,796,581 50,354 1.80%

Non-taxable 248,256 7,458 3.00% 240,054 7,500 3.12% securities (2)

Temporary investments and interest-bearing 2,936,273 3,864 0.13% 1,637,440 4,739 0.29% cash

Total interest-earning 28,930,849 $ 963,554 3.33% 27,344,492 $ 1,014,032 3.71% assets

Other assets 1,336,523 1,867,241

Total assets $ 30,267,372 $ 29,211,733

INTEREST-BEARING LIABILITIES:

Interest-bearing $ 3,462,035 $ 1,8650.05% $ 2,754,417 $ 5,7120.21% demand deposits

Money market deposits7,624,707 5,964 0.08% 7,193,470 19,811 0.28%

Savings deposits 2,200,608 729 0.03% 1,697,353 801 0.05%

Time deposits 2,217,464 18,593 0.84% 3,882,684 73,876 1.90%

Total interest-bearing 15,504,814 27,151 0.18% 15,527,924 100,200 0.65% deposits

Repurchase agreements and federal funds 454,994 280 0.06% 370,091 766 0.21% purchased

Borrowings 195,985 2,838 1.45% 1,014,240 13,921 1.37%

Junior subordinated 369,259 12,127 3.28% 325,633 15,221 4.67% debentures

Total interest-bearing 16,525,052 $ 42,396 0.26% 17,237,888 $ 130,108 0.75% liabilities

Non-interest-bearing 10,669,531 8,576,436 deposits

Other liabilities 372,078 414,951

Total liabilities 27,566,661 26,229,275

Common equity 2,700,711 2,982,458

Total liabilities and$ 30,267,372 $ 29,211,733 shareholders' equity

NET INTEREST INCOME $ 921,158 $ 883,924

NET INTEREST SPREAD 3.07% 2.96%

NET INTEREST INCOME TO EARNING ASSETS OR 3.18% 3.23% NET INTEREST MARGIN (1), (2)



(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. The amount of such adjustment was an addition to recorded income of approximately $1.5 million for the twelve months ended December 31, 2021 as compared to $1.4 million for the same period in 2020.

Umpqua Holdings Corporation Segments

(Unaudited)

Core Banking Quarter Ended % Change

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

Net interest $ 231,250 $ 232,348 $ 226,915 $ 217,574 $ 230,430 0 %0 %income

(Recapture) provision for(736) (18,919) (22,996) - 29 (96) %nm credit losses

Non-interest income

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

(Loss) gain on equity (466) (343) 4 (706) (173) 36 %169 %securities, net

(Loss) gain on swap (303) 1,429 (4,481) 11,750 3,955 (121)%(108) %derivatives, net

Change in fair value of certain (2,672) 3,432 2,782 (510) - (178)%nm loans held for investment

Non-interest income 42,812 34,849 48,151 32,913 40,921 23 %5 %(excluding above items)

Total non-interest39,375 39,367 46,456 43,451 44,703 0 %(12) %income

Non-interest expense

Merger related 15,183 - - - - nm nm expenses

Exit and disposal 3,022 3,813 4,728 1,200 725 (21) %317 %costs

Non-interest expense 150,587 146,931 146,877 145,161 171,634 2 %(12) %(excluding above items)

Allocated expenses, 4,314 3,680 970 (790) (3,565) 17 %(221) %net ^(1)

Total non-interest173,106 154,424 152,575 145,571 168,794 12 %3 %expense

Income before98,255 136,210 143,792 115,454 106,310 (28) %(8) %income taxes

Provision (benefit) for24,067 33,945 35,630 28,106 (13,508) (29) %(278) %income taxes

Net income $ 74,188 $ 102,265 $ 108,162 $ 87,348 $ 119,818 (27) %(38) %



Effective Tax24% 25% 25% 24% (13%) Rate

Efficiency 64% 57% 56% 56% 61% Ratio



Total assets $ 30,155,058 $ 30,419,108 $ 29,720,182 $ 29,529,769 $ 28,438,813 (1) %6 %

Loans held $ -$ -$ -$ -$ 78,1460 %(100) %for sale

Total loans $ 22,553,180 $ 21,969,940 $ 22,143,739 $ 22,160,860 $ 21,779,367 3 %4 %and leases

Total $ 26,370,568 $ 26,510,938 $ 25,820,776 $ 25,425,339 $ 24,200,012 (1) %9 %deposits



Key Rates, end of period:

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

FHLMC 30 year3.11% 3.01% 2.98% 3.18% 2.67% 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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Seq. Year overthousands) QuarterYear

Net interest $ 2,129 $ 2,726 $ 2,848 $ 3,857 $ 4,477 (22) %(52) %income

Provision for- - - - - nm nm credit losses

Non-interest income

Residential mortgage banking revenue:

Origination 23,624 30,293 41,367 62,505 83,388 (22) %(72) %and sale

Servicing 9,457 9,172 9,120 9,087 9,497 3 %0 %

Change in fair value of MSR asset:

Changes due to collection/ realization (5,311) (4,681) (4,366) (4,545) (4,431) 13 %20 %of expected cash flows over time

Changes due to valuation15,415 (634) (1,678) (2,014) (9,426) nm (264) %inputs or assumptions

Non-interest income 178 188 176 316 229 (5) %(22) %(excluding above items)

Total non-interest43,363 34,338 44,619 65,349 79,257 26 %(45) %income

Non-interest expense

Non-interest30,919 33,009 37,795 41,231 38,953 (6) %(21) %expense

Allocated expenses, (4,314) (3,680) (970) 790 3,565 17 %(221) %net ^(1)

Total non-interest26,605 29,329 36,825 42,021 42,518 (9) %(37) %expense

Income before18,887 7,735 10,642 27,185 41,216 144 %(54) %income taxes

Provision for4,721 1,934 2,661 6,796 10,304 144 %(54) %income taxes

Net income $ 14,166 $ 5,801 $ 7,981 $ 20,389 $ 30,912 144 %(54) %



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

Efficiency 58% 79% 78% 61% 51% Ratio



Total assets $ 485,878 $ 472,371 $ 564,783 $ 506,911 $ 796,362 3 %(39) %

Loans held $ 353,105 $ 352,466 $ 429,052 $ 376,481 $ 688,079 0 %(49) %for sale

Total $ 224,117 $ 397,459 $ 332,777 $ 461,494 $ 422,189 (44) %(47) %deposits



LHFS Production Statistics:

Closed loan volume $ 871,268 $ 987,281 $ 1,253,023 $ 1,635,532 $ 1,769,432 (12) %(51) %for-sale

Gain on sale 2.71 % 3.07 % 3.30 % 3.82 % 4.71 % margin

Direct LHFS $ 18,150 $ 19,958 $ 25,459 $ 31,151 $ 33,210 (9) %(45) %expense

Direct LHFS expenses as %2.08 % 2.02 % 2.03 % 1.90 % 1.88 % of volume



MSR Statistics:

Residential mortgage loans $ 12,755,671 $ 12,853,291 $ 12,897,032 $ 13,030,467 $ 13,026,720 (1) %(2) %serviced for others

MSR, net $ 123,615 $ 105,834 $ 102,699 $ 100,413 $ 92,90717 %33 %

MSR as % of serviced 0.97 % 0.82 % 0.80 % 0.77 % 0.71 % portfolio



Key Rates, end of period:

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

FHLMC 30 year3.11 % 3.01 % 2.98 % 3.18 % 2.67 % fixed

nm = not meaningful



^(1) Represents the internal charge of centrally provided support services and 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 Core Banking Mortgage Banking thousands)

Year Ended % Change Year Ended % Change

Dec 31, 2021 Dec 31, 2020 Year overDec 31, 2021 Dec 31, 2020 Year over Year Year

Net interest $ 908,087$ 866,9965% $ 11,560$ 15,523(26)% income

(Recapture) provision for(42,651) 204,861 (121)% - - nm credit losses

Non-interest income

Residential mortgage banking revenue:

Origination - - nm 157,789 308,219 (49)% and sale

Servicing - - nm 36,836 35,706 3%

Change in fair value of MSR asset:

Changes due to collection/ realization - - nm (18,903) (19,680) (4)% of expected cash flows over time

Changes due to valuation- - nm 11,089 (53,423) (121)% inputs or assumptions

Gain on sale of debt 8 190 (96)% - - nm securities, net

(Loss) gain on equity (1,511) 769 (296)% - - nm securities, net

Gain (loss) on swap 8,395 (9,409) (189)% - - nm derivatives, net

Change in fair value of certain 3,032 - nm - - nm loans held for investment

Non-interest income 158,725 148,884 7% 858 753 14% (excluding above items)

Total non-interest168,649 140,434 20% 187,669 271,575 (31)% income

Non-interest expense

Goodwill - 1,784,936 (100)% - - nm Impairment

Merger related 15,183 - nm - - nm expenses

Exit and disposal 12,763 2,589 393% - - nm costs

Non-interest expense 589,556 609,497 (3)% 142,954 149,065 (4)% (excluding above items)

Allocated expenses, 8,174 (11,557) (171)% (8,174) 11,557 (171)% net^ (1)

Total non-interest625,676 2,385,465 (74)% 134,780 160,622 (16)% expense

Income (loss) before income493,711 (1,582,896) (131)% 64,449 126,476 (49)% taxes

Provision for121,748 35,381 244% 16,112 31,619 (49)% income taxes

Net income $ 371,963$ (1,618,277)(123)% $ 48,337$ 94,857(49)% (loss)



Effective Tax25 % (2) % 25 % 25 % Rate

Efficiency 58 % 237 % 68 % 56 % Ratio



LHFS Production Statistics:

Closed loan volume $ 4,747,104 $ 6,666,500 (29)% for-sale

Gain on sale 3.32 % 4.62 % margin

Direct LHFS $ 94,718$ 126,990 (25)% expense

Direct LHFS expenses as % 2.00 % 1.90 % of volume

nm = not meaningful



^(1) Represents the internal charge of centrally provided support services and 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 measures. 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

View original content to download multimedia: https://www.prnewswire.com/news-releases/umpqua-reports-fourth-quarter-and-full-year-2021-results-301464222.html

SOURCE Umpqua Holdings Corporation