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

$0.49		$108		16.43%		15.9%
Net earnings per diluted common share		Net income ($ in millions)		Return on average tangible common equity ("ROATCE")		Total risk-based capital ratio (estimated)

CEO Commentary

"Through strategic growth, expense management, and capital allocation, we're committed to improving value for our shareholders over time. Umpqua's reported earnings of $0.49 per share last quarter reflect the relevance of the company's unique value proposition and customer acquisition efforts, and we're optimistic about future loan growth as our markets reopen. We're focused on continuing to execute on our talent acquisition and other growth priorities, including key Human Digital initiatives that are an important point of differentiation and customer-engagement across digital channels."

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

FIRST QUARTER HIGHLIGHTS

Net Interest Income and NIM	• Net interest income decreased by $13.5 million on a quarter to quarter basis primarily due to $9.3 million of lower Paycheck Protection Program ("PPP") fees recorded in the current period.
Net Interest Income and NIM	• Net interest margin was 3.18%, down 17 basis point due to 11 basis points of lower PPP fees recorded in the current period.

Non-Interest Income and Expense	• Non-interest income decreased by $15.2 million due to lower net mortgage banking revenue of $14.0 million.
Non-Interest Income and Expense	• Non-interest expense decreased by $23.7 million primarily due to lower salaries & benefits, occupancy & equipment, and other expenses.

Credit Quality	• Net charge-offs decreased by two basis points to 0.33% of average loans and leases (annualized).
	• Provision for credit losses was zero compared to $0.03 million in the prior period.
	• Non-performing assets to total assets decreased five basis points to 0.19% from 0.24%.

Capital	• Estimated total risk-based capital ratio of 15.9% and estimated Tier 1 Risk Based Capital ratio of 12.6%.
Capital	• Paid a quarterly cash dividend of $0.21 per common share on February 26, 2021 to shareholders of record as of February 16, 2021.

Notable items	• $2.0 million loss on the fair value change due to model inputs of the mortgage servicing rights ("MSR") asset.
Notable items	• $11.8 million gain related to the fair value of the debt capital market swap derivatives.

1Q21 KEY FINANCIAL DATA

PERFORMANCE METRICS	1Q21		4Q20		1Q20
Return on average assets	1.49	%	2.04	%	(25.82)	%
Return on average tangible common equity	16.43	%	23.07	%	(301.30)	%
Net interest margin	3.18	%	3.35	%	3.41	%
Efficiency ratio - consolidated	56.74	%	58.82	%	756.29	%
Loan to deposit ratio	85.61	%	88.45	%	93.62	%

INCOME STATEMENT ($ in 000s, excl. per share data)	1Q21		4Q20		1Q20
Net interest income	$221,431		$234,907		$218,535
Provision for credit losses	$—		$29		$118,085
Non-interest income	$108,800		$123,960		$40,645
Non-interest expense	$187,592		$211,312		$1,962,658
Earnings per common share - diluted	$0.49		$0.68		($8.41)
Dividends paid per share	$0.21		$0.21		$0.21

BALANCE SHEET	1Q21		4Q20		1Q20
Total assets	$30.0	B	$29.2	B	$27.5	B
Loans and leases	$22.2	B	$21.8	B	$21.3	B
Total deposits	$25.9	B	$24.6	B	$22.7	B
Tangible book value per share¹	$12.10		$12.21		$11.30
Book value per common shares	$12.16		$12.28		$11.39



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

Segment Disclosures

Segment disclosures have been included on pages 15 and 16 of this press release to 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 Sheet

Total consolidated assets were $30.0 billion as of March 31, 2021, compared to $29.2 billion as of December 31, 2020 and $27.5 billion as of March 31, 2020. Including secured off-balance sheet lines of credit, total available liquidity was $14.2 billion as of March 31, 2021, representing 47% of total assets and 55% of total deposits.

Gross loans and leases were $22.2 billion as of March 31, 2021, an increase of $381.5 million relative to December 31, 2020. The increase in gross loans and leases is primarily due to an increase of commercial real estate balances during the quarter of $92.2 million and an increase in net PPP loan balances of $297.6 million. The change in net PPP loan balances during the quarter was the result of an increase in round two PPP net loan balances of $659.2 million, offset by a decrease in PPP round one net loan balances of $361.6 million. Please refer to the additional loan tables in the Q1 2021 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $25.9 billion as of March 31, 2021, an increase of $1.3 billion from $24.6 billion as of December 31, 2020. This increase was primarily attributable to growth in non-interest bearing demand deposits of $867.7 million and growth in money market balances of $380.9 million, partially offset by a decline in time deposits of $373.6 million.

Net Interest Income

Net interest income was $221.4 million for the first quarter of 2021, down $13.5 million from the prior quarter. The decrease was primarily driven by $9.3 million of lower PPP fees recognized in the quarter compared to the prior period.

The Company's net interest margin was 3.18% for the first quarter of 2021, down 17 basis points from 3.35% for the fourth quarter of 2020 primarily driven by an eleven basis points decrease resulting from lower PPP fees recognized in the quarter.

Credit Quality

The allowance for credit losses was $331.0 million, or 1.49% of loans and leases, as of March 31, 2021, which was down from $348.7 million, or 1.60% of loans and leases, as of December 31, 2020. The provision for credit losses decreased by $0.03 million from the prior quarter level primarily due to offsetting changes in loan portfolio mix and improvement in economic forecasts used in the credit models.

Net charge-offs as a percentage of average loans and leases decreased by two basis points to 0.33% of average loans and leases (annualized) as of December 31, 2020. The decrease in net charge-offs for the quarter was primarily due to continued stable credit performance of the loan portfolio. As of March 31, 2021, non-performing assets were 0.19% of total assets, compared to 0.24% as of December 31, 2020 and 0.32% as of March 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 have stabilized as well as incorporating loan mix changes, we recorded a recapture of $0.34 million of the allowance for credit losses in the third quarter of 2020, a $0.03 million provision for credit losses in the fourth of 2020, and no provision for credit losses in the current period.

Non-interest Income

Non-interest income was $108.8 million for the first quarter of 2021, down $15.2 million from the prior quarter driven primarily by a decrease in net mortgage banking revenue of $14.0 million.

Revenue from the origination and sale of residential mortgages was $62.5 million for the first quarter of 2021, a decrease of $20.9 million from the prior quarter. This decrease reflects a sequential quarter decrease of $133.9 million or 8% in for-sale mortgage origination volume and a decrease of 89 basis points in the home lending gain on sale margin to 3.82% for the first quarter of 2021. Of the current quarter's mortgage production, 37% related to purchase activity, compared to 48% for the prior quarter and 43% for the same period of the prior year.

Non-interest Expense

Non-interest expense was $187.6 million for the first quarter of 2021, down $23.7 million from the prior quarter level. This decrease was primarily due to a decrease in salaries and benefits expenses of $8.3 million, a decrease in occupancy and equipment expenses of $7.1 million, and decreases in other expenses of $7.7 million.

Capital

As of March 31, 2021, the Company's tangible book value per common share¹was $12.10, compared to $12.21 in the prior quarter and $11.30 in the same period of the prior year. The decrease in tangible book value per share is attributable to increases in the fair value of trust preferred securities and a decrease in the unrealized gain of investment portfolio securities during the quarter.

The Company's estimated total risk-based capital ratio was 15.9% and its estimated Tier 1 common to risk weighted assets ratio was 12.6% as of March 31, 2021. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of March 31, 2021 are estimates, pending completion and filing of the Company's regulatory reports.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.

The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

*(In thousands, except per share data)*	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Total shareholders' equity	$	2,681,869		$	2,704,577		$	2,610,244		$	2,538,339		$	2,507,611
Subtract:
Goodwill	2,715			2,715			2,715			2,715			2,715
Other intangible assets, net	12,230			13,360			14,606			15,853			17,099
Tangible common shareholders' equity	$	2,666,924		$	2,688,502		$	2,592,923		$	2,519,771		$	2,487,797
Total assets	$	30,036,680		$	29,235,175		$	29,437,441		$	29,645,248		$	27,540,382
Subtract:
Goodwill	2,715			2,715			2,715			2,715			2,715
Other intangible assets, net	12,230			13,360			14,606			15,853			17,099
Tangible assets	$	30,021,735		$	29,219,100		$	29,420,120		$	29,626,680		$	27,520,568
Common shares outstanding at period end	220,491			220,226			220,222			220,219			220,175

Total shareholders' equity to total assets ratio	8.93		%	9.25		%	8.87		%	8.56		%	9.11		%
Tangible common equity ratio	8.88		%	9.20		%	8.81		%	8.51		%	9.04		%
Book value per common share	$	12.16		$	12.28		$	11.85		$	11.53		$	11.39
Tangible book value per common share	$	12.10		$	12.21		$	11.77		$	11.44		$	11.30

About Umpqua Holdings Corporation

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

Earnings Conference Call Information

The Company will host its first quarter 2021 earnings conference call on April 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 first 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: 7292532. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 7292532. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at https://www.umpquabank.com/investor-relations/.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; 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)*	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	221,141	$	240,815	$	229,457	$	235,174	$	245,993	(8)	%	(10)	%
Interest and dividends on investments:
Taxable	13,112		11,951		10,168		9,015		16,605		10	%	(21)	%
Exempt from federal income tax	1,534		1,523		1,490		1,520		1,562		1	%	(2)	%
Dividends	598		659		710		568		678		(9)	%	(12)	%
Temporary investments and interest bearing deposits	624		531		474		403		3,331		18	%	(81)	%
Total interest income	237,009		255,479		242,299		246,680		268,169		(7)	%	(12)	%
Interest expense:
Deposits	10,678		14,567		19,121		26,222		40,290		(27)	%	(73)	%
Securities sold under agreement to repurchase and federal funds purchased	76		93		84		194		395		(18)	%	(81)	%
Borrowings	1,772		2,765		3,271		3,839		4,046		(36)	%	(56)	%
Junior subordinated debentures	3,052		3,147		3,249		3,922		4,903		(3)	%	(38)	%
Total interest expense	15,578		20,572		25,725		34,177		49,634		(24)	%	(69)	%
Net interest income	221,431		234,907		216,574		212,503		218,535		(6)	%	1	%
Provision (recapture) for credit losses	—		29		(338)		87,085		118,085		(100)	%	(100)	%
Non-interest income:
Service charges on deposits	9,647		10,202		10,405		8,757		11,473		(5)	%	(16)	%
Card-based fees	7,374		7,754		7,118		5,901		7,417		(5)	%	(1)	%
Brokerage revenue	3,915		4,093		3,686		3,805		4,015		(4)	%	(2)	%
Residential mortgage banking revenue, net	65,033		79,028		90,377		83,877		17,540		(18)	%	271	%
Gain (loss) on sale of debt securities, net	4		—		—		323		(133)		nm		nm
(Loss) gain on equity securities, net	(706)		(173)		(112)		240		814		308	%	(187)	%
Gain on loan and lease sales, net	1,373		3,374		1,092		1,074		1,167		(59)	%	18	%
BOLI income	2,071		2,067		2,087		2,116		2,129		0	%	(3)	%
Other income (expense)	20,089		17,615		17,271		9,387		(3,777)		14	%	nm
Total non-interest income	108,800		123,960		131,924		115,480		40,645		(12)	%	168	%
Non-interest expense:
Salaries and employee benefits	124,134		132,460		120,337		116,676		109,774		(6)	%	13	%
Occupancy and equipment, net	34,635		41,758		36,720		36,171		37,001		(17)	%	(6)	%
Intangible amortization	1,130		1,246		1,247		1,246		1,247		(9)	%	(9)	%
FDIC assessments	2,599		3,014		2,989		3,971		2,542		(14)	%	2	%
Goodwill impairment	—		—		—		—		1,784,936		0	%	(100)	%
Other expenses	25,094		32,834		28,914		23,846		27,158		(24)	%	(8)	%
Total non-interest expense	187,592		211,312		190,207		181,910		1,962,658		(11)	%	(90)	%
Income (loss) before provision for income taxes	142,639		147,526		158,629		58,988		(1,821,563)		(3)	%	nm
Provision (benefit) for income taxes	34,902		(3,204)		33,758		6,062		30,384		nm		15	%
Net income (loss)	$	107,737	$	150,730	$	124,871	$	52,926	$	(1,851,947)	(29)	%	nm

Weighted average basic shares outstanding	220,367		220,225		220,221		220,210		220,216		0	%	0	%
Weighted average diluted shares outstanding	220,891		220,663		220,418		220,320		220,216		0	%	0	%
Earnings (loss) per common share – basic	$	0.49	$	0.68	$	0.57	$	0.24	$	(8.41)	(28)	%	nm
Earnings (loss) per common share – diluted	$	0.49	$	0.68	$	0.57	$	0.24	$	(8.41)	(28)	%	nm

nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																% Change
*(In thousands, except per share data)*	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	379,361		$	370,219		$	370,595		$	410,769		$	406,426		2	%	(7)	%
Interest bearing cash and temporary investments	2,861,820			2,202,962			1,849,132			1,853,505			1,251,290			30	%	129	%
Investment securities:
Equity and other, at fair value	82,771			83,077			82,769			81,958			80,797			0	%	2	%
Available for sale, at fair value	3,167,825			2,932,558			2,898,700			2,865,690			2,890,475			8	%	10	%
Held to maturity, at amortized cost	2,954			3,034			3,088			3,143			3,200			(3)	%	(8)	%
Loans held for sale	376,481			766,225			683,960			605,399			481,541			(51)	%	(22)	%
Loans and leases	22,160,860			21,779,367			22,426,473			22,671,455			21,251,478			2	%	4	%
Allowance for credit losses on loans and leases	(311,283)			(328,401)			(345,049)			(356,745)			(291,420)			(5)	%	7	%
Net loans and leases	21,849,577			21,450,966			22,081,424			22,314,710			20,960,058			2	%	4	%
Restricted equity securities	22,057			41,666			50,062			54,062			58,062			(47)	%	(62)	%
Premises and equipment, net	176,571			178,050			185,104			192,041			195,390			(1)	%	(10)	%
Operating lease right-of-use assets	100,643			104,937			107,321			111,487			115,485			(4)	%	(13)	%
Goodwill	2,715			2,715			2,715			2,715			2,715			0	%	0	%
Other intangible assets, net	12,230			13,360			14,606			15,853			17,099			(8)	%	(28)	%
Residential mortgage servicing rights, at fair value	100,413			92,907			93,248			96,356			94,346			8	%	6	%
Bank owned life insurance	322,867			323,470			326,120			324,873			322,717			0	%	0	%
Deferred tax asset, net	10,905			—			—			—			—			nm		nm
Other assets	567,490			669,029			688,597			712,687			660,781			(15)	%	(14)	%
Total assets	$	30,036,680		$	29,235,175		$	29,437,441		$	29,645,248		$	27,540,382		3	%	9	%
Liabilities:
Deposits	$	25,886,833		$	24,622,201		$	24,669,783		$	24,844,378		$	22,699,375		5	%	14	%
Securities sold under agreements to repurchase	420,402			375,384			388,028			398,414			346,245			12	%	21	%
Borrowings	281,444			771,482			996,520			1,096,559			1,196,597			(64)	%	(76)	%
Junior subordinated debentures, at fair value	281,580			255,217			247,045			232,936			195,521			10	%	44	%
Junior subordinated debentures, at amortized cost	88,212			88,268			88,325			88,382			88,439			0	%	0	%
Operating lease liabilities	109,014			113,593			115,790			119,885			123,962			(4)	%	(12)	%
Deferred tax liability, net	—			5,441			13,239			21,439			51,061			(100)	%	(100)	%
Other liabilities	287,326			299,012			308,467			304,916			331,571			(4)	%	(13)	%
Total liabilities	27,354,811			26,530,598			26,827,197			27,106,909			25,032,771			3	%	9	%
Shareholders' equity:
Common stock	3,515,248			3,514,599			3,512,153			3,510,145			3,507,680			0	%	0	%
Accumulated deficit	(871,511)			(932,767)			(1,036,931)			(1,115,414)			(1,168,340)			(7)	%	(25)	%
Accumulated other comprehensive income	38,132			122,745			135,022			143,608			168,271			(69)	%	(77)	%
Total shareholders' equity	2,681,869			2,704,577			2,610,244			2,538,339			2,507,611			(1)	%	7	%
Total liabilities and shareholders' equity	$	30,036,680		$	29,235,175		$	29,437,441		$	29,645,248		$	27,540,382		3	%	9	%

Common shares outstanding at period end	220,491			220,226			220,222			220,219			220,175			0	%	0	%
Book value per common share	$	12.16		$	12.28		$	11.85		$	11.53		$	11.39		(1)	%	7	%
Tangible book value per common share	$	12.10		$	12.21		$	11.77		$	11.44		$	11.30		(1)	%	7	%
Tangible equity - common	$	2,666,924		$	2,688,502		$	2,592,923		$	2,519,771		$	2,487,797		(1)	%	7	%
Tangible common equity to tangible assets	8.88		%	9.20		%	8.81		%	8.51		%	9.04		%	(0.32)		(0.16)

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 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	$	3,455,773		$	3,505,802		$	3,533,776		$	3,589,484		$	3,613,420		(1)	%	(4)	%
Owner occupied term, net	2,358,169			2,333,945			2,411,098			2,459,954			2,472,187			1	%	(5)	%
Multifamily, net	3,421,320			3,349,196			3,389,034			3,466,829			3,464,217			2	%	(1)	%
Construction & development, net	876,297			828,478			757,462			662,703			667,975			6	%	31	%
Residential development, net	190,841			192,761			163,400			164,180			187,594			(1)	%	2	%
Commercial:
Term, net⁽¹⁾	4,350,763			4,024,467			4,246,229			4,265,092			2,317,573			8	%	88	%
Lines of credit & other, net	825,162			862,760			894,782			940,443			1,208,051			(4)	%	(32)	%
Leases & equipment finance, net	1,420,977			1,456,630			1,496,650			1,522,369			1,492,762			(2)	%	(5)	%
Residential:
Mortgage, net	3,958,644			3,871,906			4,042,416			4,056,588			4,193,908			2	%	(6)	%
Home equity loans & lines, net	1,097,168			1,136,064			1,172,697			1,189,428			1,249,152			(3)	%	(12)	%
Consumer & other, net	205,746			217,358			318,929			354,385			384,639			(5)	%	(47)	%
Total loans and leases, net of deferred fees and costs	$	22,160,860		$	21,779,367		$	22,426,473		$	22,671,455		$	21,251,478		2	%	4	%

(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 18,135 PPP loans, totaling $2.0 billion, net of deferred fees and costs as of March 31, 2021.

Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net	15		%	16		%	16		%	16		%	17		%
Owner occupied term, net	11		%	11		%	11		%	11		%	12		%
Multifamily, net	15		%	15		%	15		%	15		%	16		%
Construction & development, net	4		%	4		%	3		%	3		%	3		%
Residential development, net	1		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	20		%	18		%	19		%	19		%	11		%
Lines of credit & other, net	4		%	4		%	4		%	4		%	5		%
Leases & equipment finance, net	6		%	7		%	7		%	7		%	7		%
Residential:
Mortgage, net	18		%	18		%	18		%	18		%	20		%
Home equity loans & lines, net	5		%	5		%	5		%	5		%	6		%
Consumer & other, net	1		%	1		%	1		%	1		%	2		%
Total	100		%	100		%	100		%	100		%	100		%

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			% Change
*(Dollars in thousands)*	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	10,500,482		$	9,632,773		$	9,475,244		$	9,172,210		$	7,169,907		9	%	46	%
Demand, interest bearing	3,244,624			3,051,487			2,931,990			2,813,722			2,482,908			6	%	31	%
Money market	7,554,798			7,173,920			7,160,838			7,262,777			7,082,011			5	%	7	%
Savings	2,109,211			1,912,752			1,848,639			1,730,051			1,486,909			10	%	42	%
Time	2,477,718			2,851,269			3,253,072			3,865,618			4,477,640			(13)	%	(45)	%
Total	$	25,886,833		$	24,622,201		$	24,669,783		$	24,844,378		$	22,699,375		5	%	14	%

Total core deposits⁽¹⁾	$	24,740,621		$	23,298,561		$	23,134,283		$	22,934,059		$	20,398,215		6	%	21	%

Deposit mix:
Demand, non-interest bearing	41		%	39		%	38		%	37		%	32		%
Demand, interest bearing	12		%	12		%	12		%	11		%	11		%
Money market	29		%	29		%	29		%	29		%	31		%
Savings	8		%	8		%	8		%	7		%	7		%
Time	10		%	12		%	13		%	16		%	19		%
Total	100		%	100		%	100		%	100		%	100		%

Number of open accounts:
Demand, non-interest bearing	422,792			420,050			423,658			423,456			416,270
Demand, interest bearing	72,156			72,811			73,812			74,813			75,514
Money market	58,409			58,609			59,083			59,445			59,203
Savings	161,432			160,192			162,234			161,710			159,870
Time	43,637			48,292			52,572			57,501			62,515
Total	758,426			759,954			771,359			776,925			773,372

Average balance per account:
Demand, non-interest bearing	$	24.8		$	22.9		$	22.4		$	21.7		$	17.2
Demand, interest bearing	45.0			41.9			39.7			37.6			32.9
Money market	129.3			122.4			121.2			122.2			119.6
Savings	13.1			11.9			11.4			10.7			9.3
Time	56.8			59.0			61.9			67.2			71.6
Total	$	34.1		$	32.4		$	32.0		$	32.0		$	29.4

⁽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 thousands)*	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status	$	29,216		$	31,076		$	26,425		$	32,412		$	39,128		(6)	%	(25)	%
Loans and leases past due 90+ days and accruing⁽¹⁾	25,612			36,361			50,269			39,818			47,185			(30)	%	(46)	%
Total non-performing loans and leases	54,828			67,437			76,694			72,230			86,313			(19)	%	(36)	%
Other real estate owned	1,405			1,810			2,369			2,578			3,020			(22)	%	(53)	%
Total non-performing assets	$	56,233		$	69,247		$	79,063		$	74,808		$	89,333		(19)	%	(37)	%

Performing restructured loans and leases	$	23,756		$	14,991		$	15,819		$	15,032		$	20,541		58	%	16	%
Loans and leases past due 31-89 days	$	51,120		$	72,047		$	66,155		$	40,583		$	59,962		(29)	%	(15)	%
Loans and leases past due 31-89 days to total loans and leases	0.23		%	0.33		%	0.29		%	0.18		%	0.28		%
Non-performing loans and leases to total loans and leases ⁽¹⁾	0.25		%	0.31		%	0.34		%	0.32		%	0.41		%
Non-performing assets to total assets⁽¹⁾	0.19		%	0.24		%	0.27		%	0.25		%	0.32		%

(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, $2.6 million, and $5.3 million at September 30, 2020, June 30, 2020, and March 31, 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 March 31, 2021 and December 31, 2020.

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
	Quarter Ended															% Change
*(Dollars in thousands)*	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period	$	328,401		$	345,049		$	356,745		$	291,420		$	157,629		(5)	%	108	%
Impact of adoption of CECL	—			—			—			—			49,999			nm		nm
Adjusted balance, beginning of period	328,401			345,049			356,745			291,420			207,628			(5)	%	58	%
Provision for credit losses on loans and leases	526			3,104			1,785			81,484			105,502			(83)	%	(100)	%
Charge-offs	(20,915)			(23,942)			(16,646)			(19,453)			(24,455)			(13)	%	(14)	%
Recoveries	3,271			4,190			3,165			3,294			2,745			(22)	%	19	%
Net charge-offs	(17,644)			(19,752)			(13,481)			(16,159)			(21,710)			(11)	%	(19)	%
Balance, end of period	$	311,283		$	328,401		$	345,049		$	356,745		$	291,420		(5)	%	7	%
Reserve for unfunded commitments
Balance, beginning of period	$	20,286		$	24,306		$	26,368		$	20,927		$	5,106		(17)	%	297	%
Impact of adoption of CECL	—			—			—			—			3,238			nm		nm
Adjusted balance, beginning of period	20,286			24,306			26,368			20,927			8,344			(17)	%	143	%
(Recapture) provision for credit losses on unfunded commitments	(526)			(4,020)			(2,062)			5,441			12,583			(87)	%	(104)	%
Balance, end of period	19,760			20,286			24,306			26,368			20,927			(3)	%	(6)	%
Total Allowance for credit losses (ACL)	$	331,043		$	348,687		$	369,355		$	383,113		$	312,347		(5)	%	6	%

Net charge-offs to average loans and leases (annualized)	0.33		%	0.35		%	0.24		%	0.29		%	0.41		%
Recoveries to gross charge-offs	15.64		%	17.50		%	19.01		%	16.93		%	11.22		%
ACLLL to loans and leases	1.40		%	1.51		%	1.54		%	1.57		%	1.37		%
ACL to loans and leases	1.49		%	1.60		%	1.65		%	1.69		%	1.47		%
nm = not meaningful

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
	Quarter Ended										% Change
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Seq. Quarter	Year over Year
Average Rates:
Yield on loans held for sale	2.75	%	3.19	%	3.13	%	3.77	%	4.20	%	(0.44)	(1.45)
Yield on loans and leases	4.02	%	4.24	%	3.96	%	4.11	%	4.58	%	(0.22)	(0.56)
Yield on taxable investments	1.86	%	1.77	%	1.56	%	1.38	%	2.50	%	0.09	(0.64)
Yield on tax-exempt investments ⁽¹⁾	3.03	%	3.08	%	3.11	%	3.17	%	3.14	%	(0.05)	(0.11)
Yield on interest bearing cash and temporary investments	0.10	%	0.10	%	0.10	%	0.10	%	1.23	%	—	(1.13)
Total yield on earning assets ⁽¹⁾	3.41	%	3.64	%	3.45	%	3.59	%	4.19	%	(0.23)	(0.78)

Cost of interest bearing deposits	0.29	%	0.38	%	0.49	%	0.67	%	1.03	%	(0.09)	(0.74)
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.08	%	0.09	%	0.09	%	0.21	%	0.47	%	(0.01)	(0.39)
Cost of borrowings	1.33	%	1.18	%	1.23	%	1.33	%	1.79	%	0.15	(0.46)
Cost of junior subordinated debentures	3.60	%	3.73	%	4.03	%	5.55	%	5.45	%	(0.13)	(1.85)
Total cost of interest bearing liabilities	0.38	%	0.49	%	0.59	%	0.78	%	1.15	%	(0.11)	(0.77)

Net interest spread ⁽¹⁾	3.03	%	3.15	%	2.85	%	2.81	%	3.04	%	(0.12)	(0.01)
Net interest margin ⁽¹⁾	3.18	%	3.35	%	3.08	%	3.09	%	3.41	%	(0.17)	(0.23)

Performance Ratios:
Return on average assets	1.49	%	2.04	%	1.68	%	0.73	%	(25.82)	%	(0.55)	27.31
Return on average tangible assets	1.49	%	2.04	%	1.68	%	0.73	%	(27.53)	%	(0.55)	29.02
Return on average common equity	16.33	%	22.92	%	19.48	%	8.46	%	(174.94)	%	(6.59)	191.27
Return on average tangible common equity	16.43	%	23.07	%	19.62	%	8.53	%	(301.30)	%	(6.64)	317.73
Efficiency ratio – Consolidated	56.74	%	58.82	%	54.52	%	55.40	%	756.29	%	(2.08)	(699.55)
Efficiency ratio – Bank	55.51	%	57.77	%	53.41	%	54.17	%	752.92	%	(2.26)	(697.41)

⁽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)*	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Seq. Quarter		Year over Year
Temporary investments and interest bearing cash	$	2,483,451	$	2,066,572	$	1,827,818	$	1,563,753	$	1,084,854	20	%	129	%
Investment securities, taxable	2,945,896		2,850,550		2,797,547		2,777,154		2,760,461		3	%	7	%
Investment securities, tax-exempt	252,741		245,997		237,165		235,934		241,105		3	%	5	%
Loans held for sale	703,557		696,688		669,646		577,773		406,434		1	%	73	%
Loans and leases	21,692,639		22,138,283		22,560,076		22,428,142		21,196,989		(2)	%	2	%
Total interest earning assets	28,078,284		27,998,090		28,092,252		27,582,756		25,689,843		0	%	9	%
Goodwill and other intangible assets, net	15,598		16,775		18,021		19,253		1,785,608		(7)	%	(99)	%
Total assets	29,392,490		29,396,311		29,533,871		29,066,775		28,844,773		0	%	2	%

Non-interest bearing demand deposits	9,897,749		9,587,081		9,335,350		8,484,684		6,880,457		3	%	44	%
Interest bearing deposits	15,166,198		15,165,049		15,451,816		15,803,595		15,695,309		0	%	(3)	%
Total deposits	25,063,947		24,752,130		24,787,166		24,288,279		22,575,766		1	%	11	%
Interest bearing liabilities	16,444,694		16,822,808		17,205,775		17,625,888		17,301,712		(2)	%	(5)	%

Shareholders' equity - common	2,674,871		2,615,676		2,549,703		2,514,754		4,257,711		2	%	(37)	%
Tangible common equity ⁽¹⁾	2,659,273		2,598,901		2,531,682		2,495,501		2,472,103		2	%	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
	March 31, 2021						December 31, 2020						March 31, 2020
*(Dollars in thousands)*	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or R ates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	703,557	$	4,845	2.75	%	$	696,688	$	5,554	3.19	%	$	406,434	$	4,264	4.20	%
Loans and leases (1)	21,692,639		216,296		4.02	%	22,138,283		235,261		4.24	%	21,196,989		241,729		4.58	%
Taxable securities	2,945,896		13,710		1.86	%	2,850,550		12,610		1.77	%	2,760,461		17,283		2.50	%
Non-taxable securities (2)	252,741		1,915		3.03	%	245,997		1,893		3.08	%	241,105		1,894		3.14	%
Temporary investments and interest-bearing cash	2,483,451		624		0.10	%	2,066,572		531		0.10	%	1,084,854		3,331		1.23	%
Total interest-earning assets	28,078,284		$	237,390	3.41	%	27,998,090		$	255,849	3.64	%	25,689,843		$	268,501	4.19	%
Other assets	1,314,206						1,398,221						3,154,930
Total assets	$	29,392,490					$	29,396,311					$	28,844,773
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,125,398	$	414	0.05	%	$	3,014,292	$	448	0.06	%	$	2,471,556	$	3,543	0.58	%
Money market deposits	7,360,512		1,491		0.08	%	7,210,906		1,731		0.10	%	7,107,626		11,759		0.66	%
Savings deposits	1,998,927		163		0.03	%	1,882,866		183		0.04	%	1,485,171		241		0.07	%
Time deposits	2,681,361		8,610		1.30	%	3,056,985		12,205		1.59	%	4,630,956		24,747		2.15	%
Total interest-bearing deposits	15,166,198		10,678		0.29	%	15,165,049		14,567		0.38	%	15,695,309		40,290		1.03	%
Repurchase agreements and federal funds purchased	395,946		76		0.08	%	388,361		93		0.09	%	337,796		395		0.47	%
Borrowings	539,077		1,772		1.33	%	934,006		2,765		1.18	%	906,624		4,046		1.79	%
Junior subordinated debentures	343,473		3,052		3.60	%	335,392		3,147		3.73	%	361,983		4,903		5.45	%
Total interest-bearing liabilities	16,444,694		$	15,578	0.38	%	16,822,808		$	20,572	0.49	%	17,301,712		$	49,634	1.15	%
Non-interest-bearing deposits	9,897,749						9,587,081						6,880,457
Other liabilities	375,176						370,746						404,893
Total liabilities	26,717,619						26,780,635						24,587,062
Common equity	2,674,871						2,615,676						4,257,711
Total liabilities and shareholders' equity	$	29,392,490					$	29,396,311					$	28,844,773
NET INTEREST INCOME			$	221,812					$	235,277					$	218,867
NET INTEREST SPREAD					3.03	%					3.15	%					3.04	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.18	%					3.35	%					3.41	%


(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 $381,000 for the three months ended March 31, 2021, as compared to $370,000 for December 31, 2020 and $332,000 for March 31, 2020.

Umpqua Holdings Corporation Segments
(Unaudited)
Core Banking		Quarter Ended															% Change
(in thousands)		Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Seq. Quarter		Year over Year
Net interest income		$	217,574		$	230,430		$	212,215		$	208,245		$	216,106		(6)	%	1	%
Provision (recapture) for credit losses		—			29			(338)			87,085			118,085			(100)	%	(100)	%
Non-interest income
	(Loss) gain on sale of investment securities, net	(702)			(173)			(112)			563			681			306	%	(203)	%
	Gain (loss) on swap derivatives, net	11,750			3,955			1,765			(823)			(14,306)			197	%	(182)	%
	Non-interest income (excluding above items)	32,403			40,921			39,678			31,697			36,588			(21)	%	(11)	%
	Total non-interest income	43,451			44,703			41,331			31,437			22,963			(3)	%	89	%
Non-interest expense
	Goodwill Impairment	—			—			—			—			1,784,936			nm		(100)	%
	Exit and disposal costs	1,200			725			792			548			524			66	%	129	%
	Non-interest expense (excluding above items)	145,161			171,634			148,519			141,448			147,896			(15)	%	(2)	%
	Allocated expenses, net ⁽¹⁾	(790)			(3,565)			(2,976)			(1,963)			(3,053)			(78)	%	(74)	%
	Total non-interest expense	145,571			168,794			146,335			140,033			1,930,303			(14)	%	(92)	%
Income (loss) before income taxes		115,454			106,310			107,549			12,564			(1,809,319)			9	%	(106)	%
Provision (benefit) for income taxes		28,106			(13,508)			20,988			(5,544)			33,445			(308)	%	(16)	%
Net income (loss)		$	87,348		$	119,818		$	86,561		$	18,108		$	(1,842,764)		(27)	%	(105)	%

Effective Tax Rate		24		%	(13)		%	20		%	(44)		%	(2)		%
Efficiency Ratio		56		%	61		%	58		%	58		%

Umpqua Reports First Quarter 2021 Results