Umpqua Reports Second Quarter 2021 Results

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Second quarter 2021 Results - Net income of $116.1 million, or $0.53 per common share - Non-PPP loan balances increased $650.5 million or 3.2% - Deposit balances increased $266.7 million or 1.0% - Provision for credit losses recapture of $23.0 million as economic conditions improve

July 21, 2021 4:05 PM EDT

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PORTLAND, Ore., July 21, 2021 /PRNewswire/ --

$0.53

$116

17.33%

15.4%

Net earnings per diluted

common share

Net income ($ in millions)

Return on average tangible common equity ("ROATCE")1

Total risk-based capital ratio

(estimated)

CEO Commentary

"Umpqua's strong results this past quarter demonstrate both the company's commitment to generating long-term value for shareholders and our optimism for growth in the markets we serve. I'm very pleased to see the success of our balanced growth efforts and unique Human Digital value proposition reflected in our record growth in non-PPP (Paycheck Protection Program) loans and increase in core bank revenue. Our brand momentum within our markets continues to build and we look forward to robust customer and talent acquisition in the quarters to come."– Cort O'Haver, President and CEO of Umpqua Holdings Corporation

SECOND QUARTER HIGHLIGHTS

Net Interest Income and NIM	• Net interest income increased by $8.3 million on a quarter to quarter basis primarily due to higher average loan balances and lower interest expense in the current period.
Net Interest Income and NIM	• Net interest margin was 3.20%, up two basis points from the prior period due to higher average loan balances and lower interest expense.

Non-Interest Income and Expense	• Non-interest income decreased by $17.7 million due to lower net mortgage banking revenue of $20.6 million.
Non-Interest Income and Expense	• Non-interest expense increased by $1.8 million due to exit disposal costs of $4.7 million as a result of store consolidations and back-office lease exits.

Credit Quality	• Net charge-offs decreased by eight basis points to 0.25% of average loans and leases (annualized).
	• A recapture of the provision for credit losses of $23.0 million was recorded in the period as economic conditions improve.
	• Non-performing assets to total assets decreased two basis points to 0.17% from 0.19%.

Capital	• Estimated total risk-based capital ratio of 15.4% and estimated Tier 1 Risk Based Capital ratio of 12.4%.
Capital	• Paid a quarterly cash dividend of $0.21 per common share on May 28, 2021 to shareholders of record as of May 18, 2021.

Notable items	• $4.5 million gain on the sale of Umpqua Investments completed during the quarter.
Notable items	• $4.7 million in exit disposal costs related to store consolidations and back-office lease exits.

2Q21 KEY FINANCIAL DATA

PERFORMANCE METRICS	2Q21		1Q21		2Q20
Return on average assets	1.54%		1.49%		0.73%
Return on average tangible common equity	17.33%		16.43%		8.53%
Net interest margin	3.20%		3.18%		3.09%
Efficiency ratio - consolidated	58.96%		56.74%		55.40%
Loan to deposit ratio	84.67%		85.61%		91.25%

INCOME STATEMENT ($ in 000s, excl. per share data)	2Q21		1Q21		2Q20
Net interest income	$229,763		$221,431		$212,503
(Recapture) provision for credit losses	($22,996)		$—		$87,085
Non-interest income	$91,075		$108,800		$115,480
Non-interest expense	$189,400		$187,592		$181,910
Earnings per common share - diluted	$0.53		$0.49		$0.24
Dividends paid per share	$0.21		$0.21		$0.21

BALANCE SHEET	2Q21		1Q21		2Q20
Total assets	$30.3	B	$30.0	B	$29.6	B
Loans and leases	$22.1	B	$22.2	B	$22.7	B
Total deposits	$26.2	B	$25.9	B	$24.8	B
Tangible book value per share1	$12.49		$12.10		$11.44
Book value per common shares	$12.54		$12.16		$11.53

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 related to 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.

Balance SheetTotal consolidated assets were $30.3 billion as of June 30, 2021, compared to $30.0 billion as of March 31, 2021 and $29.6 billion as of June 30, 2020. Including secured off-balance sheet lines of credit, total available liquidity was $15.6 billion as of June 30, 2021, representing 51% of total assets and 60% of total deposits.

Gross loans and leases were $22.1 billion as of June 30, 2021, a decrease of $17.1 million relative to March 31, 2021. The net decrease in gross loans and leases is primarily due to an increase of non-PPP loans of $650.5 million or 3.2% offset by the expected decrease in PPP loan balances of $667.6 million due to processed forgiveness and payoffs. Commercial real estate balances increased $281.8 million and residential real estate balances increased $207.9 million during the quarter. The decrease in commercial loan balances of $502.7 million includes the aforementioned decrease of PPP loan balances of $667.6 million. Please refer to the additional loan tables in the Q2 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio.

Total deposits were $26.2 billion as of June 30, 2021, an increase of $266.7 million or 1% from $25.9 billion as of March 31, 2021. This increase was primarily attributable to growth in interest bearing demand deposits of $221.6 million, growth in non-interest bearing demand deposits of $218.4 million and growth in savings balances of $112.3 million, partially offset by a decline in time deposits of $290.5 million.

Net Interest IncomeNet interest income was $229.8 million for the second quarter of 2021, up $8.3 million from the prior quarter. The increase was primarily driven by an increase of $3.7 million in interest income, as a result of higher average loan balances, and a decrease of $4.6 million in interest expense due to the decline in time deposits in the quarter compared to the prior period.

The Company's net interest margin was 3.20% for the second quarter of 2021, up two basis points from 3.18% for the first quarter of 2021 primarily driven by the decrease in interest expense due to the decline in deposit costs.

Credit QualityThe allowance for credit losses was $294.4 million, or 1.33% of loans and leases, as of June 30, 2021, which was down from $331.0 million, or 1.49% of loans and leases, as of March 31, 2021. There was a recapture of provision for credit losses of $23.0 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 eight basis points to 0.25% of average loans and leases (annualized) as of June 30, 2021. The decrease in net charge-offs for the quarter was primarily due to continued stable credit performance of the loan portfolio. As of June 30, 2021, non-performing assets were 0.17% of total assets, compared to 0.19% as of March 31, 2021 and 0.25% as of June 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 $23.0 million of the allowance for credit losses in the current period.

Non-interest IncomeNon-interest income was $91.1 million for the second quarter of 2021, down $17.7 million from the prior quarter driven primarily by a decrease in net mortgage banking revenue of $20.6 million.

Revenue from the origination and sale of residential mortgages was $41.4 million for the second quarter of 2021, a decrease of $21.1 million from the prior quarter. This decrease reflects a sequential quarter decrease of $382.5 million or 23.4% in for-sale mortgage origination volume and a decrease of 52 basis points in the mortgage banking gain on sale margin to 3.30% for the second quarter of 2021. Of the current quarter's mortgage production, 56% related to purchase activity, compared to 37% for the prior quarter and 34% for the same period of the prior year.

Non-interest ExpenseNon-interest expense was $189.4 million for the second quarter of 2021, up $1.8 million from the prior quarter level. This increase was primarily due to an increase in exit and disposal costs of $3.5 million from the prior period due to store consolidations and back-office lease exits, an increase in consulting and professional fees of $1.1 million, offset by an increase in deferred origination costs of $1.7 million and a decrease in FDIC assessment costs of $1.0 million.

CapitalAs of June 30, 2021, the Company's tangible book value per common share2 increased to $12.49, compared to $12.10 in the prior quarter and $11.44 in the same period of the prior year.

The Company's estimated total risk-based capital ratio was 15.4% and its estimated Tier 1 common to risk weightedassets ratio was 12.4% as of June 30, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of June 30, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

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).

*(In thousands, except per share data)*	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020
Total shareholders' equity	$	2,766,316		$	2,681,869		$	2,704,577		$	2,610,244		$	2,538,339
Subtract:
Goodwill	—			2,715			2,715			2,715			2,715
Other intangible assets, net	11,100			12,230			13,360			14,606			15,853
Tangible common shareholders' equity	$	2,755,216		$	2,666,924		$	2,688,502		$	2,592,923		$	2,519,771
Total assets	$	30,284,965		$	30,036,680		$	29,235,175		$	29,437,441		$	29,645,248
Subtract:
Goodwill	—			2,715			2,715			2,715			2,715
Other intangible assets, net	11,100			12,230			13,360			14,606			15,853
Tangible assets	$	30,273,865		$	30,021,735		$	29,219,100		$	29,420,120		$	29,626,680
Common shares outstanding at period end	220,626			220,491			220,226			220,222			220,219

Total shareholders' equity to total assets ratio	9.13		%	8.93		%	9.25		%	8.87		%	8.56		%
Tangible common equity ratio	9.10		%	8.88		%	9.20		%	8.81		%	8.51		%
Book value per common share	$	12.54		$	12.16		$	12.28		$	11.85		$	11.53
Tangible book value per common share	$	12.49		$	12.10		$	12.21		$	11.77		$	11.44

About Umpqua Holdings CorporationUmpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.

Earnings Conference Call InformationThe Company will host its second quarter 2021 earnings conference call on July 22, 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 second 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: 3759164. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 3759164. 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; and changes in laws or regulations. 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 thousands, except per share data)*	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	223,470	$	221,141	$	240,815	$	229,457	$	235,174	1	%	(5)	%
Interest and dividends on investments:
Taxable	14,619		13,112		11,951		10,168		9,015		11	%	62	%
Exempt from federal income tax	1,487		1,534		1,523		1,490		1,520		(3)	%	(2)	%
Dividends	405		598		659		710		568		(32)	%	(29)	%
Temporary investments and interest bearing deposits	774		624		531		474		403		24	%	92	%
Total interest income	240,755		237,009		255,479		242,299		246,680		2	%	(2)	%
Interest expense:
Deposits	7,016		10,678		14,567		19,121		26,222		(34)	%	(73)	%
Securities sold under agreement to repurchase and federal funds purchased	68		76		93		84		194		(11)	%	(65)	%
Borrowings	866		1,772		2,765		3,271		3,839		(51)	%	(77)	%
Junior subordinated debentures	3,042		3,052		3,147		3,249		3,922		0	%	(22)	%
Total interest expense	10,992		15,578		20,572		25,725		34,177		(29)	%	(68)	%
Net interest income	229,763		221,431		234,907		216,574		212,503		4	%	8	%
(Recapture) provision for credit losses	(22,996)		—		29		(338)		87,085		nm		(126)	%
Non-interest income:
Service charges on deposits	10,310		9,647		10,202		10,405		8,757		7	%	18	%
Card-based fees	10,274		7,374		7,754		7,118		5,901		39	%	74	%
Brokerage revenue	1,135		3,915		4,093		3,686		3,805		(71)	%	(70)	%
Residential mortgage banking revenue, net	44,443		65,033		79,028		90,377		83,877		(32)	%	(47)	%
Gain on sale of debt securities, net	—		4		—		—		323		(100)	%	(100)	%
Gain (loss) on equity securities, net	4		(706)		(173)		(112)		240		(101)	%	(98)	%
Gain on loan and lease sales, net	5,318		1,373		3,374		1,092		1,074		287	%	395	%
BOLI income	2,092		2,071		2,067		2,087		2,116		1	%	(1)	%
Other income	17,499		20,089		17,615		17,271		9,387		(13)	%	86	%
Total non-interest income	91,075		108,800		123,960		131,924		115,480		(16)	%	(21)	%
Non-interest expense:
Salaries and employee benefits	121,573		124,134		132,460		120,337		116,676		(2)	%	4	%
Occupancy and equipment, net	34,657		34,635		41,758		36,720		36,171		0	%	(4)	%
Intangible amortization	1,130		1,130		1,246		1,247		1,246		0	%	(9)	%
FDIC assessments	1,607		2,599		3,014		2,989		3,971		(38)	%	(60)	%
Other expenses	30,433		25,094		32,834		28,914		23,846		21	%	28	%
Total non-interest expense	189,400		187,592		211,312		190,207		181,910		1	%	4	%
Income before provision for income taxes	154,434		142,639		147,526		158,629		58,988		8	%	162	%
Provision (benefit) for income taxes	38,291		34,902		(3,204)		33,758		6,062		10	%	532	%
Net income	$	116,143	$	107,737	$	150,730	$	124,871	$	52,926	8	%	119	%

Weighted average basic shares outstanding	220,593		220,367		220,225		220,221		220,210		0	%	0	%
Weighted average diluted shares outstanding	221,022		220,891		220,663		220,418		220,320		0	%	0	%
Earnings per common share – basic	$	0.53	$	0.49	$	0.68	$	0.57	$	0.24	8	%	121	%
Earnings per common share – diluted	$	0.53	$	0.49	$	0.68	$	0.57	$	0.24	8	%	121	%

nm = not meaningful

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
	Six Months Ended				% Change
*(In thousands, except per share data)*	Jun 30, 2021		Jun 30, 2020		Year over Year
Interest income:
Loans and leases	$	444,611	$	481,167	(8)	%
Interest and dividends on investments:
Taxable	27,731		25,620		8	%
Exempt from federal income tax	3,021		3,082		(2)	%
Dividends	1,003		1,246		(20)	%
Temporary investments and interest bearing deposits	1,398		3,734		(63)	%
Total interest income	477,764		514,849		(7)	%
Interest expense:
Deposits	17,694		66,512		(73)	%
Securities sold under agreement to repurchase and federal funds purchased	144		589		(76)	%
Borrowings	2,638		7,885		(67)	%
Junior subordinated debentures	6,094		8,825		(31)	%
Total interest expense	26,570		83,811		(68)	%
Net interest income	451,194		431,038		5	%
(Recapture) provision for credit losses	(22,996)		205,170		(111)	%
Non-interest income:
Service charges on deposits	19,957		20,230		(1)	%
Card-based fees	17,648		13,318
Brokerage revenue	5,050		7,820		(35)	%
Residential mortgage banking revenue, net	109,476		101,417		8	%
Gain on sale of debt securities, net	4		190		(98)	%
(Loss) gain on equity securities, net	(702)		1,054		(167)	%
Gain on loan and lease sales, net	6,691		2,241		199	%
BOLI income	4,163		4,245		(2)	%
Other income	37,588		5,610		570	%
Total non-interest income	199,875		156,125		28	%
Non-interest expense:
Salaries and employee benefits	245,707		226,450		9	%
Occupancy and equipment, net	69,292		73,172		(5)	%
Intangible amortization	2,260		2,493		(9)	%
FDIC assessments	4,206		6,513		(35)	%
Goodwill impairment	—		1,784,936		nm
Other expenses	55,527		51,004		9	%
Total non-interest expense	376,992		2,144,568		(82)	%
Income (loss) before provision for income taxes	297,073		(1,762,575)		(117)	%
Provision for income taxes	73,193		36,446		101	%
Net income (loss)	$	223,880	$	(1,799,021)	(112)	%

Weighted average basic shares outstanding	220,481		220,213		0	%
Weighted average diluted shares outstanding	220,928		220,213		0	%
Earnings (loss) per common share – basic	$	1.02	$	(8.17)	(112)	%
Earnings (loss) per common share – diluted	$	1.01	$	(8.17)	(112)	%

nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																% Change
*(In thousands, except per share data)*	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	397,526		$	379,361		$	370,219		$	370,595		$	410,769		5	%	(3)	%
Interest bearing cash and temporary investments	2,688,285			2,861,820			2,202,962			1,849,132			1,853,505			(6)	%	45	%
Investment securities:
Equity and other, at fair value	82,099			82,771			83,077			82,769			81,958			(1)	%	0	%
Available for sale, at fair value	3,473,950			3,167,825			2,932,558			2,898,700			2,865,690			10	%	21	%
Held to maturity, at amortized cost	2,876			2,954			3,034			3,088			3,143			(3)	%	(8)	%
Loans held for sale	429,052			376,481			766,225			683,960			605,399			14	%	(29)	%
Loans and leases	22,143,739			22,160,860			21,779,367			22,426,473			22,671,455			0	%	(2)	%
Allowance for credit losses on loans and leases	(279,887)			(311,283)			(328,401)			(345,049)			(356,745)			(10)	%	(22)	%
Net loans and leases	21,863,852			21,849,577			21,450,966			22,081,424			22,314,710			0	%	(2)	%
Restricted equity securities	15,247			22,057			41,666			50,062			54,062			(31)	%	(72)	%
Premises and equipment, net	172,546			176,571			178,050			185,104			192,041			(2)	%	(10)	%
Operating lease right-of-use assets	95,030			100,643			104,937			107,321			111,487			(6)	%	(15)	%
Goodwill	—			2,715			2,715			2,715			2,715			(100)	%	(100)	%
Other intangible assets, net	11,100			12,230			13,360			14,606			15,853			(9)	%	(30)	%
Residential mortgage servicing rights, at fair value	102,699			100,413			92,907			93,248			96,356			2	%	7	%
Bank owned life insurance	324,998			322,867			323,470			326,120			324,873			1	%	0	%
Deferred tax asset, net	—			10,905			—			—			—			(100)	%	nm
Other assets	625,705			567,490			669,029			688,597			712,687			10	%	(12)	%
Total assets	$	30,284,965		$	30,036,680		$	29,235,175		$	29,437,441		$	29,645,248		1	%	2	%
Liabilities:
Deposits	$	26,153,553		$	25,886,833		$	24,622,201		$	24,669,783		$	24,844,378		1	%	5	%
Securities sold under agreements to repurchase	480,302			420,402			375,384			388,028			398,414			14	%	21	%
Borrowings	111,405			281,444			771,482			996,520			1,096,559			(60)	%	(90)	%
Junior subordinated debentures, at fair value	287,723			281,580			255,217			247,045			232,936			2	%	24	%
Junior subordinated debentures, at amortized cost	88,155			88,212			88,268			88,325			88,382			0	%	0	%
Operating lease liabilities	106,195			109,014			113,593			115,790			119,885			(3)	%	(11)	%
Deferred tax liability, net	2,497			—			5,441			13,239			21,439			nm		(88)	%
Other liabilities	288,819			287,326			299,012			308,467			304,916			1	%	(5)	%
Total liabilities	27,518,649			27,354,811			26,530,598			26,827,197			27,106,909			1	%	2	%
Shareholders' equity:
Common stock	3,517,641			3,515,248			3,514,599			3,512,153			3,510,145			0	%	0	%
Accumulated deficit	(801,954)			(871,511)			(932,767)			(1,036,931)			(1,115,414)			(8)	%	(28)	%
Accumulated other comprehensive income	50,629			38,132			122,745			135,022			143,608			33	%	(65)	%
Total shareholders' equity	2,766,316			2,681,869			2,704,577			2,610,244			2,538,339			3	%	9	%
Total liabilities and shareholders' equity	$	30,284,965		$	30,036,680		$	29,235,175		$	29,437,441		$	29,645,248		1	%	2	%

Common shares outstanding at period end	220,626			220,491			220,226			220,222			220,219			0	%	0	%
Book value per common share	$	12.54		$	12.16		$	12.28		$	11.85		$	11.53		3	%	9	%
Tangible book value per common share	$	12.49		$	12.10		$	12.21		$	11.77		$	11.44		3	%	9	%
Tangible equity - common	$	2,755,216		$	2,666,924		$	2,688,502		$	2,592,923		$	2,519,771		3	%	9	%
Tangible common equity to tangible assets	9.10		%	8.88		%	9.20		%	8.81		%	8.51		%	0.22		0.59
nm = not meaningful

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			% Change
*(Dollars in thousands)*	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net	$	3,580,386		$	3,455,773		$	3,505,802		$	3,533,776		$	3,589,484		4	%	0	%
Owner occupied term, net	2,398,326			2,358,169			2,333,945			2,411,098			2,459,954			2	%	(3)	%
Multifamily, net	3,553,704			3,421,320			3,349,196			3,389,034			3,466,829			4	%	3	%
Construction & development, net	857,866			876,297			828,478			757,462			662,703			(2)	%	29	%
Residential development, net	193,904			190,841			192,761			163,400			164,180			2	%	18	%
Commercial:
Term, net (1)	3,748,269			4,350,763			4,024,467			4,246,229			4,265,092			(14)	%	(12)	%
Lines of credit & other, net	908,518			825,162			862,760			894,782			940,443			10	%	(3)	%
Leases & equipment finance, net	1,437,372			1,420,977			1,456,630			1,496,650			1,522,369			1	%	(6)	%
Residential:
Mortgage, net	4,145,432			3,958,644			3,871,906			4,042,416			4,056,588			5	%	2	%
Home equity loans & lines, net	1,118,278			1,097,168			1,136,064			1,172,697			1,189,428			2	%	(6)	%
Consumer & other, net	201,684			205,746			217,358			318,929			354,385			(2)	%	(43)	%
Total loans and leases, net of deferred fees and costs	$	22,143,739		$	22,160,860		$	21,779,367		$	22,426,473		$	22,671,455		0	%	(2)	%

(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 14,000 PPP loans, totaling $1.4 billion, net of deferred fees and costs as of June 30, 2021.

Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net	16		%	15		%	16		%	16		%	16		%
Owner occupied term, net	11		%	11		%	11		%	11		%	11		%
Multifamily, net	16		%	15		%	15		%	15		%	15		%
Construction & development, net	4		%	4		%	4		%	3		%	3		%
Residential development, net	1		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	17		%	20		%	18		%	19		%	19		%
Lines of credit & other, net	4		%	4		%	4		%	4		%	4		%
Leases & equipment finance, net	6		%	6		%	7		%	7		%	7		%
Residential:
Mortgage, net	19		%	18		%	18		%	18		%	18		%
Home equity loans & lines, net	5		%	5		%	5		%	5		%	5		%
Consumer & other, net	1		%	1		%	1		%	1		%	1		%
Total	100		%	100		%	100		%	100		%	100		%

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			% Change
*(Dollars in thousands)*	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	10,718,921		$	10,500,482		$	9,632,773		$	9,475,244		$	9,172,210		2	%	17	%
Demand, interest bearing	3,466,251			3,244,624			3,051,487			2,931,990			2,813,722			7	%	23	%
Money market	7,559,621			7,554,798			7,173,920			7,160,838			7,262,777			0	%	4	%
Savings	2,221,524			2,109,211			1,912,752			1,848,639			1,730,051			5	%	28	%
Time	2,187,236			2,477,718			2,851,269			3,253,072			3,865,618			(12)	%	(43)	%
Total	$	26,153,553		$	25,886,833		$	24,622,201		$	24,669,783		$	24,844,378		1	%	5	%

Total core deposits (1)	$	25,122,851		$	24,740,621		$	23,298,561		$	23,134,283		$	22,934,059		2	%	10	%

Deposit mix:
Demand, non-interest bearing	41		%	41		%	39		%	38		%	37		%
Demand, interest bearing	13		%	12		%	12		%	12		%	11		%
Money market	29		%	29		%	29		%	29		%	29		%
Savings	9		%	8		%	8		%	8		%	7		%
Time	8		%	10		%	12		%	13		%	16		%
Total	100		%	100		%	100		%	100		%	100		%

Number of open accounts:
Demand, non-interest bearing	424,626			422,792			420,050			423,658			423,456
Demand, interest bearing	71,411			72,156			72,811			73,812			74,813
Money market	58,289			58,409			58,609			59,083			59,445
Savings	161,902			161,432			160,192			162,234			161,710
Time	39,560			43,637			48,292			52,572			57,501
Total	755,788			758,426			759,954			771,359			776,925

Average balance per account:
Demand, non-interest bearing	$	25.2		$	24.8		$	22.9		$	22.4		$	21.7
Demand, interest bearing	48.5			45.0			41.9			39.7			37.6
Money market	129.7			129.3			122.4			121.2			122.2
Savings	13.7			13.1			11.9			11.4			10.7
Time	55.3			56.8			59.0			61.9			67.2
Total	$	34.6		$	34.1		$	32.4		$	32.0		$	32.0

(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 thousands)*	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status	$	20,673		$	29,216		$	31,076		$	26,425		$	32,412		(29)	%	(36)	%
Loans and leases past due 90+ days and accruing (1)	29,144			25,612			36,361			50,269			39,818			14	%	(27)	%
Total non-performing loans and leases	49,817			54,828			67,437			76,694			72,230			(9)	%	(31)	%
Other real estate owned	181			1,405			1,810			2,369			2,578			(87)	%	(93)	%
Total non-performing assets	$	49,998		$	56,233		$	69,247		$	79,063		$	74,808		(11)	%	(33)	%

Performing restructured loans and leases	$	13,072		$	9,921		$	14,991		$	15,819		$	15,032		32	%	(13)	%
Loans and leases past due 31-89 days	$	30,646		$	51,120		$	72,047		$	66,155		$	40,583		(40)	%	(24)	%
Loans and leases past due 31-89 days to total loans and leases	0.14		%	0.23		%	0.33		%	0.29		%	0.18		%
Non-performing loans and leases to total loans and leases (1)	0.22		%	0.25		%	0.31		%	0.34		%	0.32		%
Non-performing assets to total assets(1)	0.17		%	0.19		%	0.24		%	0.27		%	0.25		%

(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 million and $2.6 million at September 30, 2020 and June 30, 2020, respectively. 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 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 thousands)*	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period	$	311,283		$	328,401		$	345,049		$	356,745		$	291,420		(5)	%	7	%
Impact of adoption of CECL	—			—			—			—			—			nm		nm
Adjusted balance, beginning of period	311,283			328,401			345,049			356,745			291,420			(5)	%	7	%
(Recapture) provision for credit losses on loans and leases	(17,775)			526			3,104			1,785			81,484			(3,479)	%	(122)	%
Charge-offs	(17,079)			(20,915)			(23,942)			(16,646)			(19,453)			(18)	%	(12)	%
Recoveries	3,458			3,271			4,190			3,165			3,294			6	%	5	%
Net charge-offs	(13,621)			(17,644)			(19,752)			(13,481)			(16,159)			(23)	%	(16)	%
Balance, end of period	$	279,887		$	311,283		$	328,401		$	345,049		$	356,745		(10)	%	(22)	%
Reserve for unfunded commitments
Balance, beginning of period	$	19,760		$	20,286		$	24,306		$	26,368		$	20,927		(3)	%	(6)	%
(Recapture) provision for credit losses on unfunded commitments	(5,221)			(526)			(4,020)			(2,062)			5,441			893	%	(196)	%
Balance, end of period	14,539			19,760			20,286			24,306			26,368			(26)	%	(45)	%
Total Allowance for credit losses (ACL)	$	294,426		$	331,043		$	348,687		$	369,355		$	383,113		(11)	%	(23)	%

Net charge-offs to average loans and leases (annualized)	0.25		%	0.33		%	0.35		%	0.24		%	0.29		%
Recoveries to gross charge-offs	20.25		%	15.64		%	17.50		%	19.01		%	16.93		%
ACLLL to loans and leases	1.26		%	1.40		%	1.51		%	1.54		%	1.57		%
ACL to loans and leases	1.33		%	1.49		%	1.60		%	1.65		%	1.69		%
nm = not meaningful

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
	Six Months Ended						% Change
*(Dollars in thousands)*	Jun 30, 2021			Jun 30, 2020			Year over Year
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 period	328,401			207,628			58	%
(Recapture) provision for credit losses on loans and leases	(17,249)			186,986			(109)	%
Charge-offs	(37,994)			(43,908)			(13)	%
Recoveries	6,729			6,039			11	%
Net charge-offs	(31,265)			(37,869)			(17)	%
Balance, end of period	$	279,887		$	356,745		(22)	%
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 period	20,286			8,344			143	%
(Recapture) provision for credit losses on unfunded commitments	(5,747)			18,024			(132)	%
Balance, end of period	14,539			26,368			(45)	%
Total Allowance for credit losses (ACL)	$	294,426		$	383,113		(23)	%

Net charge-offs to average loans and leases (annualized)	0.29		%	0.35		%
Recoveries to gross charge-offs	17.71		%	13.75		%
nm = not meaningful

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
	Quarter Ended										% Change
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Seq. Quarter	Year over Year
Average Rates:
Yield on loans held for sale	3.18	%	2.75	%	3.19	%	3.13	%	3.77	%	0.43	(0.59)
Yield on loans and leases	3.99	%	4.02	%	4.24	%	3.96	%	4.11	%	(0.03)	(0.12)
Yield on taxable investments	1.87	%	1.86	%	1.77	%	1.56	%	1.38	%	0.01	0.49
Yield on tax-exempt investments (1)	3.02	%	3.03	%	3.08	%	3.11	%	3.17	%	(0.01)	(0.15)
Yield on interest bearing cash and temporary investments	0.11	%	0.10	%	0.10	%	0.10	%	0.10	%	0.01	0.01
Total yield on earning assets (1)	3.35	%	3.41	%	3.64	%	3.45	%	3.59	%	(0.06)	(0.24)

Cost of interest bearing deposits	0.18	%	0.29	%	0.38	%	0.49	%	0.67	%	(0.11)	(0.49)
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.06	%	0.08	%	0.09	%	0.09	%	0.21	%	(0.02)	(0.15)
Cost of borrowings	1.62	%	1.33	%	1.18	%	1.23	%	1.33	%	0.29	0.29
Cost of junior subordinated debentures	3.30	%	3.60	%	3.73	%	4.03	%	5.55	%	(0.30)	(2.25)
Total cost of interest bearing liabilities	0.27	%	0.38	%	0.49	%	0.59	%	0.78	%	(0.11)	(0.51)

Net interest spread (1)	3.08	%	3.03	%	3.15	%	2.85	%	2.81	%	0.05	0.27
Net interest margin (1)	3.20	%	3.18	%	3.35	%	3.08	%	3.09	%	0.02	0.11

Performance Ratios:
Return on average assets	1.54	%	1.49	%	2.04	%	1.68	%	0.73	%	0.05	0.81
Return on average tangible assets	1.55	%	1.49	%	2.04	%	1.68	%	0.73	%	0.06	0.82
Return on average common equity	17.25	%	16.33	%	22.92	%	19.48	%	8.46	%	0.92	8.79
Return on average tangible common equity	17.33	%	16.43	%	23.07	%	19.62	%	8.53	%	0.90	8.80
Efficiency ratio – Consolidated	58.96	%	56.74	%	58.82	%	54.52	%	55.40	%	2.22	3.56
Efficiency ratio – Bank	58.31	%	55.51	%	57.77	%	53.41	%	54.17	%	2.80	4.14

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

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
	Six Months Ended				% Change
	Jun 30, 2021		Jun 30, 2020		Year over Year
Average Rates:
Yield on loans held for sale	2.93	%	3.94	%	(1.01)
Yield on loans and leases	4.01	%	4.33	%	(0.32)
Yield on taxable investments	1.87	%	1.94	%	(0.07)
Yield on tax-exempt investments (1)	3.02	%	3.15	%	(0.13)
Yield on interest bearing cash and temporary investments	0.11	%	0.56	%	(0.45)
Total yield on earning assets (1)	3.38	%	3.88	%	(0.50)

Cost of interest bearing deposits	0.23	%	0.85	%	(0.62)
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.07	%	0.33	%	(0.26)
Cost of borrowings	1.41	%	1.53	%	(0.12)
Cost of junior subordinated debentures	3.44	%	5.49	%	(2.05)
Total cost of interest bearing liabilities	0.33	%	0.96	%	(0.63)

Net interest spread (1)	3.05	%	2.92	%	0.13
Net interest margin (1)	3.19	%	3.25	%	(0.06)

Performance Ratios:
Return on average assets	1.52	%	(12.49)	%	14.01
Return on average tangible assets	1.52	%	(12.89)	%	14.41
Return on average common equity	16.80	%	(106.99)	%	123.79
Return on average tangible common equity	16.89	%	(145.65)	%	162.54
Efficiency ratio – Consolidated	57.84	%	364.82	%	(306.98)
Efficiency ratio – Bank	56.88	%	363.13	%	(306.25)

(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 thousands)*	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Seq. Quarter		Year over Year
Temporary investments and interest bearing cash	$	2,835,474	$	2,483,451	$	2,066,572	$	1,827,818	$	1,563,753	14	%	81	%
Investment securities, taxable	3,210,771		2,945,896		2,850,550		2,797,547		2,777,154		9	%	16	%
Investment securities, tax-exempt	247,282		252,741		245,997		237,165		235,934		(2)	%	5	%
Loans held for sale	468,960		703,557		696,688		669,646		577,773		(33)	%	(19)	%
Loans and leases	22,040,794		21,692,639		22,138,283		22,560,076		22,428,142		2	%	(2)	%
Total interest earning assets	28,803,281		28,078,284		27,998,090		28,092,252		27,582,756		3	%	4	%
Goodwill and other intangible assets, net	12,615		15,598		16,775		18,021		19,253		(19)	%	(34)	%
Total assets	30,156,017		29,392,490		29,396,311		29,533,871		29,066,775		3	%	4	%

Non-interest bearing demand deposits	10,582,197		9,897,749		9,587,081		9,335,350		8,484,684		7	%	25	%
Interest bearing deposits	15,474,743		15,166,198		15,165,049		15,451,816		15,803,595		2	%	(2)	%
Total deposits	26,056,940		25,063,947		24,752,130		24,787,166		24,288,279		4	%	7	%
Interest bearing liabilities	16,500,106		16,444,694		16,822,808		17,205,775		17,625,888		0	%	(6)	%

Shareholders' equity - common	2,700,010		2,674,871		2,615,676		2,549,703		2,514,754		1	%	7	%
Tangible common equity (1)	2,687,395		2,659,273		2,598,901		2,531,682		2,495,501		1	%	8	%

Umpqua Holdings Corporation Average Balances
(Unaudited)
	Six Months Ended				% Change
*(Dollars in thousands)*	Jun 30, 2021		Jun 30, 2020		Year over Year
Temporary investments and interest bearing cash	$	2,660,435	$	1,325,627	101	%
Investment securities, taxable	3,079,065		2,768,853		11	%
Investment securities, tax-exempt	249,996		238,505		5	%
Loans held for sale	585,611		492,577		19	%
Loans and leases	21,867,678		21,815,966		0	%
Total interest earning assets	28,442,785		26,641,528		7	%
Goodwill and other intangible assets, net	14,098		897,551		(98)	%
Total assets	29,776,362		28,956,388		3	%

Non-interest bearing demand deposits	10,241,863		7,687,002		33	%
Interest bearing deposits	15,321,323		15,749,751		(3)	%
Total deposits	25,563,186		23,436,753		9	%
Interest bearing liabilities	16,472,553		17,464,696		(6)	%

Shareholders' equity - common	2,687,510		3,381,417		(21)	%
Tangible common equity (1)	2,673,412		2,483,866		8	%

(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
	June 30, 2021						March 31, 2021						June 30, 2020
*(Dollars in thousands)*	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	468,960	$	3,725	3.18	%	$	703,557	$	4,845	2.75	%	$	577,773	$	5,443	3.77	%
Loans and leases (1)	22,040,794		219,745		3.99	%	21,692,639		216,296		4.02	%	22,428,142		229,731		4.11	%
Taxable securities	3,210,771		15,024		1.87	%	2,945,896		13,710		1.86	%	2,777,154		9,583		1.38	%
Non-taxable securities (2)	247,282		1,864		3.02	%	252,741		1,915		3.03	%	235,934		1,868		3.17	%
Temporary investments and interest-bearing cash	2,835,474		774		0.11	%	2,483,451		624		0.10	%	1,563,753		403		0.10	%
Total interest-earning assets	28,803,281		$	241,132	3.35	%	28,078,284		$	237,390	3.41	%	27,582,756		$	247,028	3.59	%
Other assets	1,352,736						1,314,206						1,484,019
Total assets	$	30,156,017					$	29,392,490					$	29,066,775
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,385,336	$	459	0.05	%	$	3,125,398	$	414	0.05	%	$	2,649,331	$	1,148	0.17	%
Money market deposits	7,614,474		1,533		0.08	%	7,360,512		1,491		0.08	%	7,275,041		4,037		0.22	%
Savings deposits	2,171,865		154		0.03	%	1,998,927		163		0.03	%	1,628,276		198		0.05	%
Time deposits	2,303,068		4,870		0.85	%	2,681,361		8,610		1.30	%	4,250,947		20,839		1.97	%
Total interest-bearing deposits	15,474,743		7,016		0.18	%	15,166,198		10,678		0.29	%	15,803,595		26,222		0.67	%
Repurchase agreements and federal funds purchased	440,881		68		0.06	%	395,946		76		0.08	%	375,098		194		0.21	%
Borrowings	214,670		866		1.62	%	539,077		1,772		1.33	%	1,163,065		3,839		1.33	%
Junior subordinated debentures	369,812		3,042		3.30	%	343,473		3,052		3.60	%	284,130		3,922		5.55	%
Total interest-bearing liabilities	16,500,106		$	10,992	0.27	%	16,444,694		$	15,578	0.38	%	17,625,888		$	34,177	0.78	%
Non-interest-bearing deposits	10,582,197						9,897,749						8,484,684
Other liabilities	373,704						375,176						441,449
Total liabilities	27,456,007						26,717,619						26,552,021
Common equity	2,700,010						2,674,871						2,514,754
Total liabilities and shareholders' equity	$	30,156,017					$	29,392,490					$	29,066,775
NET INTEREST INCOME			$	230,140					$	221,812					$	212,851
NET INTEREST SPREAD					3.08	%					3.03	%					2.81	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.20	%					3.18	%					3.09	%

(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 $377,000 for the three months ended June 30, 2021, as compared to $381,000 for March 31, 2021 and $348,000 for June 30, 2020.

Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
(dollars in thousands)	Six Months Ended
	June 30, 2021						June 30, 2020
	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	585,611	$	8,570	2.93	%	$	492,577	$	9,707	3.94	%
Loans and leases (1)	21,867,678		436,041		4.01	%	21,815,966		471,460		4.33	%
Taxable securities	3,079,065		28,734		1.87	%	2,768,853		26,866		1.94	%
Non-taxable securities (2)	249,996		3,779		3.02	%	238,505		3,763		3.15	%
Temporary investments and interest-bearing cash	2,660,435		1,398		0.11	%	1,325,627		3,734		0.56	%
Total interest-earning assets	28,442,785		$	478,522	3.38	%	26,641,528		$	515,530	3.88	%
Other assets	1,333,577						2,314,860
Total assets	$	29,776,362					$	28,956,388
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,256,085	$	873	0.05	%	$	2,560,935	$	4,691	0.37	%
Money market deposits	7,488,195		3,024		0.08	%	7,191,796		15,796		0.44	%
Savings deposits	2,085,874		317		0.03	%	1,557,118		439		0.06	%
Time deposits	2,491,169		13,480		1.09	%	4,439,902		45,586		2.06	%
Total interest-bearing deposits	15,321,323		17,694		0.23	%	15,749,751		66,512		0.85	%
Repurchase agreements and federal funds purchased	418,538		144		0.07	%	356,550		589		0.33	%
Borrowings	375,977		2,638		1.41	%	1,035,553		7,885		1.53	%
Junior subordinated debentures	356,715		6,094		3.44	%	322,842		8,825		5.49	%
Total interest-bearing liabilities	16,472,553		$	26,570	0.33	%	17,464,696		$	83,811	0.96	%
Non-interest-bearing deposits	10,241,863						7,687,002
Other liabilities	374,436						423,273
Total liabilities	27,088,852						25,574,971
Common equity	2,687,510						3,381,417
Total liabilities and shareholders' equity	$	29,776,362					$	28,956,388
NET INTEREST INCOME			$	451,952					$	431,719
NET INTEREST SPREAD					3.05	%					2.92	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.19	%					3.25	%

(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 $758,000 for the six months ended June 30, 2021, as compared to $681,000 for the same period in 2020.

Umpqua Holdings Corporation Segments
(Unaudited)
Core Banking		Quarter Ended															% Change
(in thousands)		Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Seq. Quarter		Year over Year
Net interest income		$	226,915		$	217,574		$	230,430		$	212,215		$	208,245		4	%	9	%
(Recapture) provision for credit losses		(22,996)			—			29			(338)			87,085			nm		(126)	%
Non-interest income
	Gain (loss) gain on sale of investment securities, net	4			(702)			(173)			(112)			563			(101)	%	(99)	%
	(Loss) gain on swap derivatives, net	(4,481)			11,750			3,955			1,765			(823)			(138)	%	444	%
	Non-interest income (excluding above items)	50,933			32,403			40,921			39,678			31,697			57	%	61	%
	Total non-interest income	46,456			43,451			44,703			41,331			31,437			7	%	48	%
Non-interest expense
	Exit and disposal costs	4,728			1,200			725			792			548			294	%	763	%
	Non-interest expense (excluding above items)	146,877			145,161			171,634			148,519			141,448			1	%	4	%
	Allocated expenses, net (1)	970			(790)			(3,565)			(2,976)			(1,963)			(223)	%	(149)	%
	Total non-interest expense	152,575			145,571			168,794			146,335			140,033			5	%	9	%
Income before income taxes		143,792			115,454			106,310			107,549			12,564			25	%	1,044	%
Provision (benefit) for income taxes		35,630			28,106			(13,508)			20,988			(5,544)			27	%	(743)	%
Net income		$	108,162		$	87,348		$	119,818		$	86,561		$	18,108		24	%	497	%

Effective Tax Rate		25		%	24		%	(13)		%	20		%	(44)		%
Efficiency Ratio		56		%	56		%	61		%	58		%	58		%

Total assets		$	29,720,182		$	29,529,769		$	28,438,813		$	28,652,477		$	28,942,285		1	%	3	%
Loans held for sale		$	—		$	—		$	78,146		$	—		$	—		0	%	0	%
Total loans and leases		$	22,143,739		$	22,160,860		$	21,779,367		$	22,426,473		$	22,671,455		0	%	(2)	%
Total deposits		$	25,820,776		$	25,425,339		$	24,200,012		$	24,102,498		$	24,421,486		2	%	6	%

Key Rates, end of period:
10 year CMT		1.45		%	1.74		%	0.93		%	0.69		%	0.66		%
FHLMC 30 year fixed		2.98		%	3.18		%	2.67		%	2.88		%	3.13		%
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 Banking		Quarter Ended															% Change
(in thousands)		Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Seq. Quarter		Year over Year
Net interest income		$	2,848		$	3,857		$	4,477		$	4,359		$	4,258		(26)	%	(33)	%
Provision for credit losses		—			—			—			—			—			nm		nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	41,367			62,505			83,388			98,703			86,781			(34)	%	(52)	%
	Servicing	9,120			9,087			9,497			8,796			8,533			0	%	7	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	(4,366)			(4,545)			(4,431)			(4,878)			(5,042)			(4)	%	(13)	%
	Changes due to valuation inputs or assumptions	(1,678)			(2,014)			(9,426)			(12,244)			(6,395)			(17)	%	(74)	%
	Non-interest income (excluding above items)	176			316			229			216			166			(44)	%	6	%
	Total non-interest income	44,619			65,349			79,257			90,593			84,043			(32)	%	(47)	%
Non-interest expense
	Non-interest expense	37,795			41,231			38,953			40,896			39,914			(8)	%	(5)	%
	Allocated expenses, net (1)	(970)			790			3,565			2,976			1,963			(223)	%	(149)	%
	Total non-interest expense	36,825			42,021			42,518			43,872			41,877			(12)	%	(12)	%
Income before income taxes		10,642			27,185			41,216			51,080			46,424			(61)	%	(77)	%
Provision for income taxes		2,661			6,796			10,304			12,770			11,606			(61)	%	(77)	%
Net income		$	7,981		$	20,389		$	30,912		$	38,310		$	34,818		(61)	%	(77)	%

Effective Tax Rate		25		%	25		%	25		%	25		%	25		%
Efficiency Ratio		78		%	61		%	51		%	46		%	47		%

Total assets		$	564,783		$	506,911		$	796,362		$	784,964		$	702,963		11	%	(20)	%
Loans held for sale		$	429,052		$	376,481		$	688,079		$	683,960		$	605,399		14	%	(29)	%
Total deposits		$	332,777		$	461,494		$	422,189		$	567,285		$	422,892		(28)	%	(21)	%

LHFS Production Statistics:
Closed loan volume for-sale		1,253,023			1,635,532			1,769,432			1,922,789			1,826,095			(23)	%	(31)	%
Gain on sale margin		3.30		%	3.82		%	4.71		%	5.13		%	4.75		%
Direct LHFS expense		$	25,459		$	31,151		$	33,210		$	35,678		$	34,057		(18)	%	(25)	%
Direct LHFS expenses as % of volume		2.03		%	1.90		%	1.88		%	1.86		%	1.87		%

MSR Statistics:
Residential mortgage loans serviced for others		12,897,032			13,030,467			13,026,720			12,964,361			12,746,125			(1)	%	1	%
MSR, net		102,699			100,413			92,907			93,248			96,356			2	%	7	%
MSR as % of serviced portfolio		0.80		%	0.77		%	0.71		%	0.72		%	0.76		%

Key Rates, end of period:
10 year CMT		1.45		%	1.74		%	0.93		%	0.69		%	0.66		%
FHLMC 30 year fixed		2.98		%	3.18		%	2.67		%	2.88		%	3.13		%
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 thousands)		Core Banking								Mortgage Banking
		Six Months Ended						% Change		Six Months Ended						% Change
		Jun 30, 2021			Jun 30, 2020			Year over Year		Jun 30, 2021			Jun 30, 2020			Year over Year
Net interest income		$	444,489		$	424,351		4.75	%	$	6,705		$	6,687		0.27	%
Provision for credit losses		(22,996)			205,170			(111.21)	%	—			—			nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	—			—			nm		103,872			126,128			(17.65)	%
	Servicing	—			—			nm		18,207			17,413			4.56	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	—			—			nm		(8,911)			(10,371)			(14.08)	%
	Changes due to valuation inputs or assumptions	—			—			nm		(3,692)			(31,753)			(88.37)	%
	Gain (loss) on sale of investment securities, net	(698)			1,244			(156.11)	%	—			—			nm
	Gain (loss) on swap derivatives, net	7,269			(15,129)			(148.05)	%	—			—			nm
	Non-interest income (excluding above items)	83,336			68,285			22.04	%	492			308			59.74	%
	Total non-interest income	89,907			54,400			65.27	%	109,968			101,725			8.10	%
Non-interest expense
	Goodwill Impairment	—			1,784,936			(100.00)	%	—			—			nm
	Exit and disposal costs	5,928			1,072			452.99	%	—			—			nm
	Non-interest expense (excluding above items)	292,038			289,344			0.93	%	79,026			69,216			14.17	%
	Allocated expenses, net (1)	180			(5,016)			(103.59)	%	(180)			5,016			(103.59)	%
	Total non-interest expense	298,146			2,070,336			(85.60)	%	78,846			74,232			6.22	%
Income (loss) before income taxes		259,246			(1,796,755)			(114.43)	%	37,827			34,180			10.67	%
Provision (benefit) for income taxes		63,736			27,901			128.44	%	9,457			8,545			10.67	%
Net income (loss)		$	195,510		$	(1,824,656)		(110.71)	%	$	28,370		$	25,635		10.67	%

Effective Tax Rate		25		%	(2)		%			25		%	25		%
Efficiency Ratio		56		%	432		%			68		%	68		%

LHFS Production Statistics:
Closed loan volume for-sale										2,888,555			2,974,279
Gain on sale margin										3.60		%	4.24		%
Direct LHFS expense										$	56,610		$	58,102
Direct LHFS expenses as % of volume										1.96		%	1.95		%
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 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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