Umpqua Holdings Reports First Quarter 2014 Operating Earnings of $0.21 Per Diluted Share1

  Umpqua Holdings Reports First Quarter 2014 Operating Earnings of $0.21 Per
  Diluted Share1

Transformational merger with Sterling Financial closed April 18th; integration
                               plans on target
    Continued organic growth; non-covered loans & leases and core deposits
                         increased from prior quarter
Disciplined expense management; non-interest expense (excluding merger-related
                 costs) decreased by 3.4% from prior quarter
  Credit quality remains strong; solid capital and liquidity base to support
                                    growth

Business Wire

PORTLAND, Ore. -- April 21, 2014

Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and
Umpqua Investments Inc., today announced first quarter 2014 net earnings
available to common shareholders of $18.7 million, or $0.17 per diluted common
share, as compared to net earnings available to common shareholders of $25.1
million, or $0.22 per diluted common share, for the fourth quarter of 2013,
and $23.2 million, or $0.21 per diluted common share, for the same period in
the prior year.

Operating earnings^1, defined as earnings available to common shareholders
before gains or losses on junior subordinated debentures carried at fair
value, net of tax; bargain purchase gains on acquisitions, net of tax; merger
related expenses, net of tax; and goodwill impairment, were $24.0 million, or
$0.21 per diluted common share, for the first quarter of 2014, as compared to
operating earnings of $27.9 million, or $0.25 per diluted common share, for
the fourth quarter of 2013, and $24.4 million, or $0.22 per diluted common
share, for the same period in the prior year.

First quarter 2014 financial highlights:

  *Operating earnings^1 of $24.0 million, as compared to $27.9 million in the
    prior quarter:

       *Mortgage banking revenue of $10.4 million, down from $16.0 million in
         the prior quarter due primarily to a $4.1 million change in the fair
         value of mortgage servicing rights (first quarter 2014 decrease in
         fair value of $1.0 million versus fourth quarter 2013 increase in
         fair value of $3.1 million);
       *Net interest income of $107.8 million, down from $110.1 million in
         the prior quarter resulting primarily from two fewer days in the
         first quarter;
       *Net interest margin of 4.28% and adjusted net interest margin^2 of
         4.12%, both relatively flat from the prior quarter;
       *Provision for non-covered loan and lease losses increased by $1.6
         million from the prior quarter, related to growth in the Financial
         Pacific Leasing (“FinPac”) portfolio;
       *Excluding merger-related expenses, non-interest expense decreased by
         $3.2 million from the prior quarter due primarily to lower marketing
         expenses and workout-related expenses;

  *Continued to generate organic loan growth and gather core deposits:

       *Non-covered loans and leases grew $97 million, offset by $41 million
         of loan sales for the quarter for a net growth of $57 million;
       *Total core deposits grew by $153 million, or 1.9%, from the prior
         quarter;

  *Credit quality remained strong:

       *Non-covered, non-performing assets were $62.2 million, representing
         0.53% of total assets;
       *Allowance for non-covered credit losses to non-covered loans and
         leases increased to 1.19% from 1.18% in the prior quarter;

  *Disciplined capital management:

       *Tangible common equity ratio of 8.67%;
       *Total risk-based capital of 14.69%, and Tier 1 common to risk
         weighted asset ratio of 11.01%;
       *Declared a dividend of $0.15 per common share, representing an 88%
         payout ratio for the quarter;

“We reported a solid quarter of financial and operating performance, with
continued loan and deposit growth, disciplined expense management, and strong
capital and credit quality, in light of a softer mortgage origination market,”
said Ray Davis, president and CEO of Umpqua Holdings Corporation. “We are
pleased to close the Sterling Financial Corporation merger. Our integration
program is on target, and we look forward to being recognized as the West
Coast’s largest community bank.”

^1 Operating earnings is considered “non-GAAP” financial measure. More
information regarding this measurement and a reconciliation to the comparable
GAAP measurement is provided under the heading Non-GAAP Financial Measures
below.

^2 Adjusted net interest margin is considered a “non-GAAP” financial measure.
More information regarding this measurement and a reconciliation to the
comparable GAAP measurement is provided under the heading Non-GAAP Financial
Measures below.

Balance sheet

Total consolidated assets as of March 31, 2014 were $11.8 billion, as compared
to $11.6 billion on December 31, 2013 and $11.5 billion a year ago. Total
gross loans and leases (covered and non-covered), and deposits, were $7.8
billion and $9.3 billion, respectively, as of March 31, 2014, as compared to
$7.7 billion and $9.1 billion, respectively, as of December 31, 2013, and $7.1
billion and $9.1 billion, respectively, as of March 31, 2013.

Total non-covered loans and leases held for investment increased by $97
million during the first quarter of 2014, partially offset by loan sales of
$41 million during the quarter, for a net growth in non-covered loans and
leases of $57 million. The growth in the current quarter primarily related to
growth in the residential mortgage, lease financing, owner occupied commercial
real estate and commercial lines of credit portfolios. Of the $41 million in
loan sales, $15 million related to government guaranteed loans and $26 million
related to commercial syndications. Covered loans declined $21.7 million
during the first quarter of 2014. The covered loan portfolio will continue to
decline over time as loan payments are received, covered loans are refinanced
or modified out of loss sharing, and as we work out and resolve troubled
credits.

Total deposits increased $155.9 million on a sequential quarter basis,
primarily in money market and non-interest bearing demand accounts, partially
offset by the declines in interest bearing demand and certificate of deposit
balances. The continued increase in securities sold under agreements to
repurchase results from the FDIC discontinuing banking institutions’ ability
to collateralize uninsured non-public funds deposits, while various customers
still require or prefer some form of collateralization based on their business
requirements.

Including secured off-balance sheet lines of credit, total available liquidity
to the Company was $4.5 billion as of March 31, 2014, representing 38% of
total assets and 48% of total deposits. The Company has continued to increase
liquidity in order to provide it with maximum flexibility for the merger with
Sterling Financial Corporation.

Net interest margin

The Company reported a net interest margin of 4.28% for the first quarter of
2014, as compared to 4.29% for the fourth quarter of 2013, and 3.77% for the
first quarter of 2013. The change in net interest margin from the prior
quarter resulted from relatively minor changes in the mix of interest bearing
assets and liabilities and their related yields. The increase in net interest
margin in the current quarter over the same period of the prior year primarily
resulted from the increase in loan and investment yields, the increase in
average non-covered loans outstanding, the decrease in the cost of interest
bearing deposits, and the decline in average interest bearing liabilities,
partially offset by the decrease in average covered loan balances and the
increase in average interest bearing cash.

Loan disposal activities within the covered loan portfolio, either through
loans being paid off in full or transferred to OREO, result in gains within
covered loan interest income to the extent assets received in satisfaction of
debt (such as cash or the net realizable value of OREO received) exceed the
allocated carrying value of the loan disposed of from the pool. Loan disposal
activities contributed $4.3 million of interest income in the first quarter of
2014, as compared to $3.9 million in the fourth quarter of 2013 and $3.2
million in the first quarter of 2013. While dispositions of covered loans
positively impact interest income and net interest margin, we recognize a
corresponding decrease to the change in the FDIC indemnification asset within
non-interest income that partially offsets the impact to net income.

Interest and fee reversals related to non-accrual loans during the first
quarter of 2014 totaled $122 thousand, as compared to recoveries of $399
thousand for the fourth quarter of 2013 and reversals of $1.1 million in the
first quarter of 2013.

Excluding the impact of loan disposal gains and interest and fee reversals on
non-accrual loans, our adjusted net interest margin was 4.12% for the first
quarter of 2014, as compared to 4.12% for the fourth quarter of 2013 and 3.69%
for the first quarter of 2013. More information regarding this measurement and
reconciliation to the comparable GAAP measurement is provided under the
heading Non-GAAP Financial Measures below.

The cost of interest bearing deposits was 0.23% for the first quarter of 2014,
2 basis points lower than the fourth quarter of 2013, and 11 basis points
lower than the first quarter of 2013. The decline in the cost of interest
bearing deposits in the quarter was primarily driven by the downward
re-pricing or run-off of maturing time deposits. Management closely and
continually monitors market deposit rates and develops our pricing strategy to
ensure we are competitive in the market and in-line with our liquidity
position and funding needs.

Mortgage banking revenue

The Company generated $10.4 million in total mortgage banking revenue during
the first quarter of 2014, on closed loan volume of $293 million. This
represents an 18% decrease in production volume compared to the fourth quarter
of 2013 and a 42% decrease in production volume compared to the same period of
the prior year. The first quarter’s sequential decrease in production was
reflective of lower refinancing volume, consistent with long-term
interest-rate movements towards the end of last year, and lower purchase
activity attributable to home buying seasonality. Of the current quarter’s
production, 69% related to purchase activity, as compared to 70% in the fourth
quarter of 2013 and 33% in the first quarter of 2013. Income from the
origination and sale of mortgage loans was $8.4 million in the first quarter
of 2014, representing a 15% decrease from the prior quarter, and a 63%
decrease compared to the same quarter of the prior year.

In the first quarter of 2014, the Company recognized a decrease in the fair
value of the mortgage servicing right assets in the income statement of $1.0
million, as compared to an increase in fair value of $3.1 million for the
fourth quarter of 2013, and a decrease in fair value of $1.7 million for the
first quarter of 2013. Servicing revenue was $3.0 million in the first quarter
of 2014, representing a 2% increase from the prior quarter, and a 32% increase
compared to the same quarter of the prior year, due to the growth in the total
serviced portfolio principal balance. As of March 31, 2014, the Company
serviced $4.5 billion of residential mortgage loans for others, and the
related mortgage servicing right asset was valued at $49.2 million, or 1.09%
of the total serviced portfolio principal balance, as compared to $4.4 billion
of mortgage loans for others as of December 31, 2013, with a related mortgage
servicing right asset of $47.8 million, or 1.09% of the total serviced
portfolio principal balance.

Fair value of junior subordinated debentures

The Company recognized a $542 thousand loss from the change in fair value of
junior subordinated debentures during the first quarter of 2014. The majority
of the fair value difference under par value relates to the $61.8 million of
junior subordinated debentures issued in the fourth quarter of 2007, which
carry interest rate spreads of 135 and 275 basis points over the 3 month
LIBOR. As of March 31, 2014, the credit risk adjusted interest spread for
potential new issuances was estimated to be significantly higher than the
contractual spread. The difference between these spreads has created a
cumulative gain in fair value of the Company’s junior subordinated debentures,
which results from their carrying amount compared to the estimated amount that
would be paid to transfer the liability in an orderly transaction among market
participants.

As these instruments are no longer being originated or actively traded in the
primary or secondary markets, the quarterly fair value adjustments are
difficult to estimate. We utilize an income approach valuation technique to
determine the fair value of these liabilities using our estimation of market
discount rate assumptions. The Company monitors activity in the trust
preferred and related markets, to the extent available, changes related to the
current and anticipated future interest rate environment, and considers our
entity-specific creditworthiness, to validate the reasonableness of the credit
risk adjusted spread and effective yield utilized in our discounted cash flow
model.Absent changes to the significant inputs utilized in the discounted
cash flow model used to measure the fair value of these instruments at each
reporting period, the cumulative discount for each junior subordinated
debenture will reverse over time, ultimately returning the carrying values of
these instruments to their notional values at their expected redemption dates.

On July 2, 2013, federal banking regulators approved the final proposed rules
that revise the regulatory capital rules to incorporate certain revisions by
the Basel Committee on Banking Supervision to the Basel capital framework
(Basel III). Under the final rule, consistent with Section 171 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, bank holding
companies with less than $15 billion assets as of December 31, 2009 will be
grandfathered and may continue to include these instruments in Tier 1 capital,
subject to certain restrictions. However, if an institution grows above $15
billion as a result of an acquisition (including our closed merger with
Sterling Financial Corporation), the combined trust preferred issuances must
be phased out of Tier 1 and into Tier 2 capital (75% in 2015 and 100% in
2016). As of March 31, 2014, the total par value of junior subordinated
debentures carried at fair value was $134.0 million, and the fair value was
$87.8 million.

Other non-interest income

Total other non-interest income for the first quarter of 2014 was $6.5
million, as compared to $5.2 million for the fourth quarter of 2013 and $5.4
million for the first quarter of 2013. The largest recurring component of
other income is Debt Capital Markets revenue, which was $0.8 million for the
first quarter of 2014, as compared to $1.2 million in the prior quarter and
$1.6 million for the same quarter of the prior year. FinPac contributed $0.9
million of other non-interest income in both the first quarter of 2014 and the
fourth quarter of 2013. Also included in other income for the first quarter of
2014 was a $0.5 million gain on sale related to $15.0 million of government
guaranteed loans.

Non-interest expense

Total non-interest expense for the first quarter of 2014 was $96.5 million, as
compared to $95.4 million for the fourth quarter of 2013 and $85.8 million for
the first quarter of 2013. Merger activities were related to the merger with
Sterling Financial Corporation, the acquisition of FinPac in the third quarter
of 2013 and the acquisition of Circle Bancorp in the fourth quarter of 2012,
which resulted in $6.0 million of merger expense in the first quarter of 2014,
as compared to $1.6 million in the fourth quarter of 2013, and $1.5 million
recognized in the same period of the prior year. Excluding merger-related
expenses, non-interest expense was $90.5 million, a decrease of $3.2 million
compared to $93.7 for the fourth quarter of 2013, primarily due to lower
marketing and workout-related expenses.

Gains on non-covered OREO were $18 thousand in the first quarter of 2014, as
compared to losses of $1.4 million in the fourth quarter of 2013 and gains of
$130 thousand in the first quarter of 2013. Mortgage production related
expense was $7.2 million in the first quarter of 2014, as compared to $8.0
million for the fourth quarter of 2013, and $10.3 million for the first
quarter of 2013. Additionally, the operations of FinPac contributed additional
non-interest expense of $3.8 million in the first quarter of 2014 and $3.6
million in the fourth quarter of 2013.

Income taxes

The Company recorded a provision for income taxes of $9.6 million in the first
quarter of 2014, representing an effective tax rate of 33.8% for the quarter.

Capital

As of March 31, 2014, total shareholders’ equity was $1.73 billion, comprised
entirely of common equity. Book value per common share was $15.44, tangible
book value per common share was $8.54 and the ratio of tangible common equity
to tangible assets was 8.67% (see explanation and reconciliation of these
items in the Non-GAAP Financial Measures section below). The Company made no
open market or privately negotiated purchases of common stock under the
Company’s previously announced share repurchase plan during the first quarter
of 2014. The Company may repurchase up to 12.0 million of additional shares
under this plan.

The Company’s estimated total risk-based capital ratio as of March 31, 2014 is
14.69%. This represents a slight increase from the 14.65% at December 31,
2013, as a result of the increase in total risk based capital relative to the
increase in risk weighted assets. Our total risk-based capital level is
substantially in excess of the regulatory definition of “well-capitalized” of
10.00%. The Company’s estimated Tier 1 common to risk weighted assets ratio is
11.01% as of March 31, 2014. These capital ratios as of March 31, 2014 are
estimates pending completion and filing of the Company’s regulatory reports.

Asset quality – Non-covered loan portfolio

Non-covered, non-performing assets were $62.2 million, or 0.53% of total
assets, as of March 31, 2014, as compared to $57.2 million, or 0.49% of total
assets as of December 31, 2013, and $79.7 million, or 0.69% of total assets as
of March 31, 2013. Of this amount, as of March 31, 2014, $37.9 million
represented non-accrual loans, $2.3 million represented loans past due greater
than 90 days and still accruing interest, and $22.0 million was other real
estate owned (“OREO”). FinPac contributed $3.0 million of non-performing
assets to our March 31, 2014 totals and $3.3 million of non-performing assets
to our December 31, 2013 totals, adding 2 and 3 basis points, respectively, to
our non-covered, non-performing assets as a percentage of total assets ratio
for these periods.

Non-covered, classified assets are approximately $308.3 million as of March
31, 2014, which is relatively consistent with the prior quarter and represents
a 13% decline since the same period of the prior year. Classified assets
include non-performing assets, as well as performing assets rated substandard
or worse.

The provision for non-covered loan losses for the first quarter of 2014 was
$5.4 million, as compared to $3.8 million from the prior quarter, and $7.0
million from the same period of the prior year.

The allowance for non-covered credit losses, which includes the allowance for
non-covered loan and lease losses and the allowance for non-covered unfunded
loan commitments, was 1.19% of non-covered loans and leases at March 31, 2014,
as compared to 1.18% of total non-covered loans and leases as of December 31,
2013 and 1.29% of total non-covered loans and leases as of March 31, 2013. The
increase in the allowance for credit loss ratio in the current period relates
to the growth of the FinPac portfolio which generally has a higher projected
loss rate than the remaining portfolio. The annualized net charge-off rate for
the first quarter of 2014 was 0.22%, as compared to 0.18% in the prior quarter
and 0.47% in the same period of the prior year.

Non-covered loans past due 30 to 89 days were $29.4 million, or 0.40% of
non-covered loans and leases as of March 31, 2014, as compared to $15.3
million, or 0.21% of non-covered loans and leases as of December 31, 2013, and
$39.8 million, or 0.60% of non-covered loans and leases as of March 31, 2013.

Non-covered restructured loans on accrual status were $67.9 million as of
March 31, 2014, as compared to $68.8 million as of December 31, 2013, and
$74.1 million as of March 31, 2013.

Asset quality – Covered loan portfolio

Covered non-performing assets were $1.7 million, or 0.01% of total assets, as
of March 31, 2014, as compared to $2.1 million, or 0.02% of total assets, as
of December 31, 2013, and $7.9 million, or 0.07% of total assets, as of March
31, 2013. The total covered non-performing assets balance for all periods
presented represents covered OREO.

In accordance with the guidance governing the accounting for purchased loan
portfolios with evidence of credit deterioration subsequent to origination,
the covered loans acquired have been assembled into pools of loans. As a
result, individual loans underlying the loan pools are not reported as
non-performing. Rather, the accretable yield of the pool is recognized to the
extent pool level expected future cash flows discounted at the effective rate
exceed the carrying value of the pool. To the extent discounted expected
future cash flows are less than the carrying value of the pool, provisions for
covered credit losses are recognized as a charge to earnings, but the adjusted
carrying value of the loan pool continues to accrete into income at the
effective rate.

As of the acquisition dates, covered non-performing assets were written-down
to their estimated fair value, incorporating our estimate of future expected
cash flows until the ultimate resolution of these credits. The estimated
credit losses embedded in these acquired non-performing loan portfolios were
based on management’s and third-party consultants’ credit reviews of the
portfolios performed during due diligence. To the extent actual or projected
cash flows are less than originally estimated, additional provisions for loan
losses on the covered loan portfolio will be recognized; however, these
provisions would be mostly offset by a corresponding increase in the FDIC
indemnification (loss sharing) asset recognized within non-interest income. To
the extent actual or projected cash flows are more than originally or
previously estimated, the increase in cash flows is prospectively recognized
in interest income; however, the increase in interest income would be mostly
offset by a corresponding prospective decrease in the FDIC indemnification
(loss sharing) asset recognized within non-interest income.

Merger with Sterling Financial Corporation

As of the close of business on April 18, 2014, we completed our merger with
Sterling Financial Corporation, a bank holding company headquartered in
Spokane, Washington. The transaction has a total deal value of approximately
$2.1 billion (based on the closing price of Umpqua shares as of April 17,
2014). The combined organization has approximately $22 billion in assets, $15
billion in loans and $16 billion in deposits. The company will operate under
the Umpqua Bank name and brand. The Company has been focused on integration
planning since the announcement of the merger on September 11, 2013, and will
provide further details during its first quarter 2014 earnings conference
call(see Earnings Conference Call Information below).

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. Umpqua believes that
certain non-GAAP financial measures provide investors with information useful
in understanding Umpqua’s financial performance; however, readers of this
report are urged to review these non-GAAP financial measures in conjunction
with the GAAP results as reported.

Umpqua recognizes gains or losses on our junior subordinated debentures
carried at fair value resulting from changes in interest rates and the
estimated market credit risk adjusted spread that do not directly correlate
with the Company’s operating performance. Also, Umpqua incurs significant
expenses related to the completion and integration of mergers and
acquisitions. Additionally, we may recognize goodwill impairment losses that
have no direct effect on the Company’s or the Bank’s cash balances, liquidity,
or regulatory capital ratios. Lastly, the Company may recognize one-time
bargain purchase gains on certain acquisitions that are not reflective of
Umpqua’s on-going earnings power. Accordingly, management believes that our
operating results are best measured on a comparative basis excluding the
impact of gains or losses on junior subordinated debentures measured at fair
value, net of tax, merger-related expenses, net of tax, and other charges
related to business combinations such as goodwill impairment charges or
bargain purchase gains, net of tax. We define operating earnings as earnings
available to common shareholders before gains or losses on junior subordinated
debentures carried at fair value, net of tax, bargain purchase gains on
acquisitions, net of tax, merger related expenses, net of tax, and goodwill
impairment, and we calculate operating earnings per diluted share by dividing
operating earnings by the same diluted share total used in determining diluted
earnings per common share.

The following table provides the reconciliation of earnings available to
common shareholders (GAAP) to operating earnings (non-GAAP), and earnings per
diluted common share (GAAP) to operating earnings per diluted share (non-GAAP)
for the periods presented:

                                                         Sequential   Year
                       Quarter ended:                  Quarter     over
                                                                      Year
(Dollars in             Mar 31,    Dec 31,    Mar 31,
thousands, except per   2014      2013      2013      % Change    % Change
share data)
                                           
Net earnings
available to common     $18,651    $25,058    $23,178    (26   )%     (20  )%
shareholders
Adjustments:
Net loss on junior
subordinated
debentures carried at   325        332        325        (2    )%     0    %
fair value, net of
tax ^(1)
Merger related
expenses, net of tax    5,073     2,502     919        103   %      452  %
^(1)
Operating earnings      $24,049   $27,892   $24,422    (14   )%     (2   )%
                                                                      
Earnings per diluted
share:
Earnings available to   $0.17      $0.22      $0.21      (23   )%     (19  )%
common shareholders
Operating earnings      $0.21      $0.25      $0.22      (16   )%     (5   )%

(1) Income tax effect of pro forma operating earnings adjustments at 40% for
tax-deductible items.

nm = not meaningful

Management believes adjusted net interest income and adjusted net interest
margin are useful financial measures because they enable investors to evaluate
the underlying growth or compression in these values excluding interest income
adjustments related to credit quality. Management uses these measures to
evaluate adjusted net interest income operating results exclusive of credit
costs, in order to monitor our effectiveness in growing higher interest
yielding assets and managing our cost of interest bearing liabilities over
time. Adjusted net interest income is calculated as net interest income,
adjusting tax exempt interest income to its taxable equivalent, adding back
interest and fee reversals related to new non-accrual loans during the period,
and deducting the interest income gains recognized from loan disposition
activities within covered loan pools. Adjusted net interest margin is
calculated by dividing annualized adjusted net interest income by a period’s
average interest earning assets.

The following table provides the reconciliation of net interest income (GAAP)
to adjusted net interest income (non-GAAP), and net interest margin (GAAP) to
adjusted net interest margin (non-GAAP) for the periods presented:

                                                               Sequential   Year
              Quarter ended:                                 Quarter     over
                                                                            Year
(Dollars in
thousands,     Mar 31, 2014   Dec 31, 2013   Mar 31, 2013   % Change    %
except per                                                                  Change
share data)
                                            
Net interest   $107,838        $110,074        $94,189         (2     )%    14  %
income
Tax
equivalent     1,092          1,119          1,171          (2     )%    (7  )%
adjustment
(1)
Net interest   108,930         111,193         95,360          (2     )%    14  %
income (1)
                                                                            
Adjustments:
Interest and
fee
reversals
(recoveries)   122             (399        )   1,085           (131   )%    (89 )%
on
non-accrual
loans
Covered loan
disposal       (4,259      )  (3,908      )  (3,154      )   9      %     35  %
gains
Adjusted net
interest       $104,793      $106,886      $93,291        (2     )%    12  %
income (1)
                                                                            
Average
interest       $10,310,116     $10,292,996     $10,250,643     0      %     1   %
earning
assets
                                                                            
Net interest
margin –       4.28        %   4.29        %   3.77        %
consolidated
(1)
Adjusted net
interest
margin –       4.12        %   4.12        %   3.69        %
consolidated
(1)

(1) Tax equivalent basis. Tax exempt interest has been adjusted to a taxable
equivalent basis using a 35% tax rate.

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

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

(Dollars in thousands, except per  Mar 31, 2014  Dec 31, 2013  Mar 31, 2013
share data)
                                                               
Total shareholders' equity          $1,734,476     $1,727,426     $1,734,263
Subtract:
Goodwill and other intangible       775,488       776,683       684,125
assets, net
Tangible common shareholders'       $958,988      $950,743      $1,050,138
equity
                                                                  
Total assets                        $11,838,726    $11,636,112    $11,491,410
Subtract:
Goodwill and other intangible       775,488       776,683       684,125
assets, net
Tangible assets                     $11,063,238   $10,859,429   $10,807,285
                                                                  
Common shares outstanding at        112,319,525    111,973,203    111,960,580
period end
                                                                  
Tangible common equity ratio        8.67%          8.75%          9.72%
Tangible book value per common      $8.54          $8.49          $9.38
share

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 use of technology, and distinctive banking solutions.
Umpqua Bank has locations across Idaho, Washington, Oregon, California and
Northern Nevada. Umpqua Holdings also owns a retail brokerage subsidiary,
Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in
dedicated offices in Oregon. Umpqua Private Bank serves high net worth
individualsand non-profits,providing trust and investment services. Umpqua
Holdings Corporation is headquartered in Portland, Oregon. For more
information, visit www.umpquaholdingscorp.com.

Earnings Conference Call Information

Umpqua Holdings Corporation will conduct a quarterly earnings conference call
Tuesday, April 22, 2014, at 10:00 a.m. PDT (1:00 p.m. EDT) during which the
Company will discuss first quarter 2014 results and provide an update on
recent activities. There will be a question-and-answer session following the
presentation. Shareholders, analysts and other interested parties are invited
to join the call by dialing (888) 378-4353 a few minutes before 10:00 a.m. and
entering the following conference ID is 1569388. A re-broadcast will be
available approximately two hours after the call by dialing (888) 203-1112 and
entering conference ID 1569388 or by visiting www.umpquaholdingscorp.com. The
conference call will also be available as a live audiocast on the Investor
Relations section of our website. It will be archived on that site and will be
available for replay and download. Information to be discussed in the
teleconference will be available on the Company’s website after the market
closes on Monday, April 21, 2014.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act
of 1995, which management believes are a benefit to shareholders. These
statements are necessarily subject to risk and uncertainty and actual results
could differ materially due to various risk factors, including those set forth
from time to time in our filings with the SEC. You should not place undue
reliance on forward-looking statements and we undertake no obligation to
update any such statements. In this press release we make forward-looking
statements about size and growth potential from the acquisition of Sterling
Financial Corporation; how we expect to determine the fair value of junior
subordinated debentures; the mitigating effect of FDIC loss sharing agreements
on the covered loan portfolio; valuations of, and the potential accelerated
redemption of, junior subordinated debentures and our current intent to not
redeem those securities; costs of interest bearing deposits and management’s
pricing strategy; and the integration of the merger with Sterling Financial
Corporation. Specific risks that could cause results to differ from the
forward-looking statements are set forth in our filings with the SEC and
include, without limitation, changes in the discounted cash flow model used to
determine the fair value of subordinated debentures, prolonged low interest
rate environment, unanticipated weakness in loan demand or loan pricing,
deterioration in the economy, material reductions in revenue or material
increases in expenses, lack of strategic growth opportunities or our failure
to execute on those opportunities, our inability to effectively manage problem
credits, certain loan assets becoming ineligible for loss sharing,
unanticipated increases in the cost of deposits, the consequences of a
phase-out of junior subordinated debentures from Tier 1 capital; Umpqua’s
ability to achieve the synergies and earnings accretion contemplated by the
merger; Umpqua’s ability to promptly and effectively integrate the businesses
of Sterling and Umpqua; the diversion of management time on issues related to
merger integration; changes in laws or regulations; and changes in general
economic conditions.


Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
                                                          Sequential  Year
                                                                         over
                  Quarter Ended:                            Quarter      Year
(Dollars in
thousands,        Mar 31,      Dec 31,      Mar 31,      % Change    %
except per        2014          2013          2013                       Change
share data)
Interest income                            
Non-covered
loans and         $91,268       $93,032       $78,545       (2)%         16%
leases
Covered loans     12,718        13,330        14,580        (5)%         (13)%
and leases
Interest and
dividends on
investments:
Taxable           9,291         9,517         8,644         (2)%         7%
Exempt from
federal income    2,112         2,173         2,288         (3)%         (8)%
tax
Dividends         50            87            24            (43)%        108%
Temporary
investments &
interest          441          399          252           11%          75%
bearing
deposits
Total interest    115,880       118,538       104,333       (2)%         11%
income
Interest
expense
Deposits          3,848         4,168         5,878         (8)%         (35)%
Repurchase
agreements and    41            42            31            (2)%         32%
fed funds
purchased
Term debt         2,273         2,332         2,273         (3)%         0%
Junior
subordinated      1,880        1,922        1,962         (2)%         (4)%
debentures
Total interest    8,042         8,464         10,144        (5)%         (21)%
expense
Net interest      107,838       110,074       94,189        (2)%         14%
income
Provision for
non-covered       5,400         3,840         6,988         41%          (23)%
loan and lease
losses
Provision for
(recapture of)
covered loan      571           (1,369)       232           (142)%       146%
and lease
losses
Non-interest
income
Service charges   7,767         8,108         6,992         (4)%         11%
Brokerage fees    3,725         3,584         3,636         4%           2%
Mortgage
banking           10,439        15,957        23,568        (35)%        (56)%
revenue, net
Net gain on
investment        --            191           7             (100)%       (100)%
securities
Loss on junior
subordinated
debentures        (542)         (554)         (542)         (2)%         0%
carried at fair
value
Change in FDIC
indemnification   (4,840)       (5,708)       (5,073)       (15)%        (5)%
asset
Other income      6,458        5,207        5,427         24%          19%
Total
non-interest      23,007        26,785        34,015        (14)%        (32)%
income
Non-interest
expense
Salaries and
employee          53,218        52,720        51,505        1%           3%
benefits
Net occupancy     16,501        16,254        14,735        2%           12%
and equipment
Intangible        1,194         1,186         1,204         1%           (1)%
amortization
FDIC              1,863         1,922         1,651         (3)%         13%
assessments
Net (gain) loss
on non-covered    (18)          1,416         (130)         (101)%       (86)%
other real
estate owned
Net (gain) loss
on covered        (46)          (19)          284           142%         (116)%
other real
estate owned
Merger related    5,983         1,639         1,531         265%         291%
expenses
Other expense     17,823       20,246       14,982        (12)%        19%
Total
non-interest      96,518        95,364        85,762        1%           13%
expense
Income before
provision for     28,356        39,024        35,222        (27)%        (19)%
income taxes
Provision for     9,592        13,754       11,861        (30)%        (19)%
income taxes
Net income        18,764        25,270        23,361        (26)%        (20)%
Dividends and
undistributed
earnings          113          212          183           (47)%        (38)%
allocated to
participating
securities
Net earnings
available to      $18,651      $25,058      $23,178       (26)%        (20)%
common
shareholders
                                                                         
Weighted
average basic     112,169,914   111,948,569   111,937,062   0%           0%
shares
outstanding
Weighted
average diluted   112,366,551   112,214,086   112,117,854   0%           0%
shares
outstanding
Earnings per
common share –    $0.17         $0.22         $0.21         (23)%        (19)%
basic
Earnings per
common share –    $0.17         $0.22         $0.21         (23)%        (19)%
diluted
                                                                         
nm = not meaningful


Umpqua Holdings Corporation

Consolidated Balance Sheets
(Unaudited)
                                                        Sequential  Year
                                                                         over
                                                            Quarter      Year
(Dollars in
thousands,        Mar 31,      Dec 31,      Mar 31,      % Change    %
except per        2014          2013          2013                       Change
share data)
Assets:
Cash and due      $196,963      $178,685      $148,851      10%          32%
from banks
Interest
bearing           887,620       611,224       566,241       45%          57%
deposits
Temporary         525           514           3,096         2%           (83)%
investments
Investment
securities:
Trading, at       4,498         5,958         3,183         (25)%        41%
fair value
Available for
sale, at fair     1,701,730     1,790,978     2,396,617     (5)%         (29)%
value
Held to
maturity, at      5,465         5,563         4,189         (2)%         30%
amortized cost
Loans held for    73,106        104,664       133,100       (30)%        (45)%
sale
Non-covered
loans and         7,411,108     7,354,403     6,663,186     1%           11%
leases
Allowance for
non-covered       (86,709)     (85,314)     (84,692)      2%           2%
loan and lease
losses
Non-covered
loans and         7,324,399     7,269,089     6,578,494     1%           11%
leases, net
Covered loans     342,263       363,992       449,860       (6)%         (24)%
and leases, net
Restricted
equity            29,948        30,685        32,783        (2)%         (9)%
securities
Premises and      180,199       177,680       161,911       1%           11%
equipment, net
Goodwill and
other             775,488       776,683       684,125       0%           13%
intangibles,
net
Mortgage
servicing         49,220        47,765        32,097        3%           53%
rights, at fair
value
Non-covered
other real        22,034        21,833        18,673        1%           18%
estate owned
Covered other
real estate       1,746         2,102         7,896         (17)%        (78)%
owned
FDIC
indemnification   18,362        23,174        46,046        (21)%        (60)%
asset
Bank owned life   97,589        96,938        94,637        1%           3%
insurance
Deferred tax      11,393        16,627        5,254         (31)%        117%
assets, net
Other assets      116,178      111,958      124,357       4%           (7)%
Total assets      $11,838,726  $11,636,112  $11,491,410   2%           3%
                                                                         
Liabilities:
Deposits          $9,273,583    $9,117,660    $9,071,655    2%           2%
Securities sold
under             262,483       224,882       142,810       17%          84%
agreements to
repurchase
Term debt         250,964       251,494       253,080       0%           (1)%
Junior
subordinated      87,800        87,274        85,616        1%           3%
debentures, at
fair value
Junior
subordinated      101,818       101,899       102,141       0%           0%
debentures, at
amortized cost
Other             127,602      125,477      101,845       2%           25%
liabilities
Total             10,104,250    9,908,686     9,757,147     2%           4%
liabilities
                                                                         
Shareholders'
equity:
Common stock      1,514,969     1,514,485     1,513,197     0%           0%
Retained          219,686       217,917       199,362       1%           10%
earnings
Accumulated
other             (179)        (4,976)      21,704        (96)%        (101)%
comprehensive
(loss) income
Total
shareholders'     1,734,476    1,727,426    1,734,263     0%           0%
equity
Total
liabilities and   $11,838,726  $11,636,112  $11,491,410   2%           3%
shareholders'
equity
                                                                         
Common shares
outstanding at    112,319,525   111,973,203   111,960,580   0%           0%
period end
Book value per    $15.44        $15.43        $15.49        0%           0%
common share
Tangible book
value per         $8.54         $8.49         $9.38         1%           (9)%
common share
Tangible equity   $958,988      $950,743      $1,050,138    1%           (9)%
- common
Tangible common
equity to         8.67%         8.75%         9.72%
tangible assets
                                                                         
nm = not meaningful


Umpqua Holdings Corporation
Non-covered Loan & Lease Portfolio
(Unaudited)
                                                                          Sequential  Year
                                                                                              over
(Dollars in    Mar 31, 2014          Dec 31, 2013          Mar 31, 2013          Quarter      Year
thousands)
               Amount      Mix      Amount      Mix      Amount      Mix      % Change    %
                                                                                              Change
Non-covered
loans &                                                             
leases:
Commercial
real estate:
Non-owner
occupied       $2,311,952   31%      $2,328,260   32%      $2,352,006   35%      (1)%         (2)%
term
Owner
occupied       1,282,482    17%      1,259,583    17%      1,243,825    19%      2%           3%
term
Multifamily    400,927      5%       403,537      5%       336,621      5%       (1)%         19%
Commercial     229,262      3%       245,231      3%       195,411      3%       (7)%         17%
construction
Residential    89,510       1%       88,413       1%       57,740       1%       1%           55%
development
Commercial:
Term           735,004      10%      770,845      10%      783,628      12%      (5)%         (6)%
Lines of
credit &       1,005,800    14%      987,360      13%      863,318      13%      2%           17%
other
Leases &
equipment      388,418      5%       361,591      5%       40,951       1%       7%           848%
finance
Residential
real estate:
Mortgage       651,042      9%       597,201      8%       489,162      7%       9%           33%
Home equity
lines &        268,497      4%       264,269      4%       259,291      4%       2%           4%
loans
Consumer &     48,214       1%       48,113       1%       41,173       1%       0%           17%
other
Total          $7,411,108   100%     $7,354,403   100%     $6,663,186   100%     1%           11%
                                                                                              


Umpqua Holdings Corporation
Covered Loan & Lease Portfolio, Net
(Unaudited)
(Dollars in                                                                Sequential   Year
thousands)    Mar 31, 2014      Dec 31, 2013      Mar 31, 2013      Quarter     over
                                                                                        year
               Amount    Mix      Amount    Mix      Amount    Mix      % Change    %
                                                                                        Change
Covered
loans &                                                       
leases:
Commercial
real estate:
Non-owner
occupied       $197,067   58%      $204,052   56%      $241,937   54%      (3)%         (19)%
term
Owner
occupied       48,447     14%      48,673     13%      64,369     14%      0%           (25)%
term
Multifamily    27,079     8%       37,185     10%      44,017     10%      (27)%        (38)%
Commercial     2,779      1%       2,803      1%       8,076      2%       (1)%         (66)%
construction
Residential    6,083      2%       6,311      2%       7,699      2%       (4)%         (21)%
development
Commercial:
Term           7,861      2%       13,280     4%       17,584     4%       (41)%        (55)%
Lines of
credit &       8,929      3%       6,302      2%       13,571     3%       42%          (34)%
other
Residential
real estate:
Mortgage       21,664     6%       22,175     6%       25,741     6%       (2)%         (16)%
Home equity
lines &        18,501     5%       19,119     5%       21,877     5%       (3)%         (15)%
loans
Consumer &     3,853      1%       4,092      1%       4,989      1%       (6)%         (23)%
other
Total          $342,263   100%     $363,992   100%     $449,860   100%     (6)%         (24)%
                                                                                        

Covered loan & lease portfolio balances represent the loan portfolios acquired
through the assumption of EvergreenBank on January 22, 2010, Rainier Pacific
Bank on February 26, 2010, and Nevada Security Bank on June 18, 2010, from the
FDIC through whole bank purchase and assumption agreements with loss sharing.


Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
                                                                          Sequential  Year
                                                                                              over
(Dollars in    Mar 31, 2014          Dec 31, 2013          Mar 31, 2013          Quarter      Year
thousands)
               Amount      Mix    Amount      Mix    Amount      Mix      % Change    %
                                                                                              Change
Deposits:                                                           
Demand,
non-interest   $2,465,606   27%      $2,436,477   27%      $2,175,140   24%      1%           13%
bearing
Demand,
interest       1,182,634    13%      1,233,070    14%      1,157,010    13%      (4)%         2%
bearing
Money market   3,526,368    38%      3,349,946    37%      3,288,339    36%      5%           7%
Savings        578,238      6%       560,699      6%       503,755      6%       3%           15%
Time           1,520,737    16%      1,537,468    17%      1,947,411    21%      (1)%         (22)%
Total          $9,273,583   100%     $9,117,660   100%     $9,071,655   100%     2%           2%
                                                                                              
Total core     $8,205,636   88%      $8,052,280   88%      $7,679,970   85%      2%           7%
deposits (1)
                                                                                              
Number of
open
accounts:
Demand,
non-interest   190,298               187,088               186,084               2%           2%
bearing
Demand,
interest       46,291                48,643                50,394                (5)%         (8)%
bearing
Money market   34,913                35,303                37,183                (1)%         (6)%
Savings        84,686                84,144                85,747                1%           (1)%
Time           22,755                23,688                27,473                (4)%         (17)%
Total          378,943               378,866               386,881               0%           (2)%
                                                                                              
Average
balance per
account:
Demand,
non-interest   $13.0                 $13.0                 $11.7
bearing
Demand,
interest       25.5                  25.3                  23.0
bearing
Money market   101.0                 94.9                  88.4
Savings        6.8                   6.7                   5.9
Time           66.8                  64.9                  70.9
Total          $24.5                 $24.1                 $23.4
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.



Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)
                                                      Sequential  Year
                                                                       over
                         Quarter Ended                    Quarter      Year
(Dollars in thousands)   Mar 31,   Dec 31,   Mar 31,    % Change    %
                         2014       2013       2013                    Change
                                                                       
Non-covered,
non-performing assets:
Non-covered loans and
leases on non-accrual    $37,884    $31,891    $55,234    19%          (31)%
status
Non-covered loans and
leases past due 90+      2,269     3,430     5,824      (34)%        (61)%
days & accruing
Total non-performing     40,153     35,321     61,058     14%          (34)%
loans and leases
Non-covered other real   22,034    21,833    18,673     1%           18%
estate owned
Total                    $62,187   $57,154   $79,731    9%           (22)%
                                                                       
Non-covered performing
restructured loans and   $67,897    $68,791    $74,092    (1)%         (8)%
leases
                                                                       
Non-covered loans and
leases past due 30-89    $29,416    $15,290    $39,800    92%          (26)%
days
Non-covered loans and
leases past due 30-89    0.40%      0.21%      0.60%
days to non-covered
loans and leases
                                                                       
Non-covered,
non-performing loans
and leases to            0.54%      0.48%      0.92%
non-covered loans and
leases
Non-covered,
non-performing assets    0.53%      0.49%      0.69%
to total assets
                                                                       
Covered non-performing
assets:
Covered loans and
leases on non-accrual    $--       $--       $--        nm           nm
status
Total non-performing     --         --         --         nm           nm
loans and leases
Covered other real       1,746     2,102     7,896      (17)%        (78)%
estate owned
Total                    $1,746    $2,102    $7,896     (17)%        (78)%
                                                                       
Covered non-performing
loans and leases to      --%        --%        --%
covered loans and
leases
Covered non-performing   0.01%      0.02%      0.07%
assets to total assets
                                                                       
Total non-performing
assets:
Loans and leases on      $37,884    $31,891    $55,234    19%          (31)%
non-accrual status
Loans and leases past
due 90+ days &           2,269     3,430     5,824      (34)%        (61)%
accruing
Total non-performing     40,153     35,321     61,058     14%          (34)%
loans and leases
Other real estate        23,780    23,935    26,569     (1)%         (10)%
owned
Total                    $63,933   $59,256   $87,627    8%           (27)%
                                                                       
Non-performing loans
and leases to loans      0.52%      0.46%      0.86%
and leases
Non-performing assets    0.54%      0.51%      0.76%
to total assets
                                                                       


Umpqua Holdings Corporation
Credit Quality – Allowance for Non-covered Credit Losses
(Unaudited)
                                                     Sequential  Year
                                                                      over
                       Quarter Ended                     Quarter      Year
(Dollars in            Mar 31,   Dec 31,    Mar 31,   % Change    % Change
thousands)             2014       2013        2013
Allowance for
non-covered credit
losses:
Balance beginning of   $85,314    $84,694     $85,391
period
Provision for
non-covered loan and   5,400      3,840       6,988      41%          (23)%
lease losses
                                                                      
Charge-offs            (5,565)    (11,349)    (8,725)    (51)%        (36)%
Recoveries             1,560     8,129      1,038      (81)%        50%
Net charge-offs        (4,005)    (3,220)     (7,687)    24%          (48)%
                                          
Total allowance for
non-covered loan and   86,709     85,314      84,692     2%           2%
lease losses
                                                                      
Reserve for unfunded   1,417     1,436      1,269      (1)%         12%
commitments
Total allowance for
non-covered credit     $88,126   $86,750    $85,961    2%           3%
losses
                                                                      
Net charge-offs to
average non-covered    0.22%      0.18%       0.47%
loans and leases
(annualized)
Recoveries to gross    28.03%     71.63%      11.90%
charge-offs
Allowance for
non-covered loan
losses to              1.17%      1.16%       1.27%
non-covered loans
and leases
Allowance for
non-covered credit
losses to              1.19%      1.18%       1.29%
non-covered loans
and leases
                                                                      


Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
                                                      Sequential    Year
                                                                       over
                       Quarter Ended:                   Quarter        Year
                       Mar 31,   Dec 31,   Mar 31,   Change        Change
                       2014       2013       2013
Average Rates:                           
Yield on
non-covered loans      4.96%      5.00%      4.65%      (0.04)         0.31
and leases
Yield on covered       14.82%     13.99%     12.86%     0.83           1.96
loans and leases
Yield on taxable       2.39%      2.31%      1.51%      0.08           0.88
investments
Yield on
tax-exempt             5.54%      5.56%      5.32%      (0.02)         0.22
investments (1)
Yield on temporary
investments &          0.25%      0.25%      0.27%      0.00           (0.02)
interest bearing
cash
Total yield on         4.60%      4.61%      4.17%      (0.01)         0.43
earning assets (1)
                                                                       
Cost of interest       0.23%      0.25%      0.34%      (0.02)         (0.11)
bearing deposits
Cost of securities
sold under
agreements to          0.07%      0.07%      0.09%      0.00           (0.02)
repurchase and fed
funds purchased
Cost of term debt      3.67%      3.68%      3.64%      (0.01)         0.03
Cost of junior
subordinated           4.03%      4.04%      4.13%      (0.01)         (0.10)
debentures
Total cost of
interest bearing       0.44%      0.46%      0.55%      (0.02)         (0.11)
liabilities
                                                                       
Net interest           4.16%      4.15%      3.62%      0.01           0.54
spread (1)
Net interest
margin –               4.28%      4.29%      3.77%      (0.01)         0.51
Consolidated (1)
                                                                       
Net interest           4.35%      4.35%      3.85%      0.00           0.50
margin – Bank (1)
                                                                       
As reported
(GAAP):
Return on average      0.65%      0.86%      0.82%      (0.21)         (0.17)
assets
Return on average      0.70%      0.92%      0.87%      (0.22)         (0.17)
tangible assets
Return on average      4.35%      5.73%      5.43%      (1.38)         (1.08)
common equity
Return on average
tangible common        7.86%      10.38%     8.99%      (2.52)         (1.13)
equity
Efficiency ratio –     73.15%     69.12%     66.29%     4.03           6.86
Consolidated
Efficiency ratio –     71.18%     67.30%     63.87%     3.88           7.31
Bank
                                                                       
Operating basis
(non-GAAP): (2)
Return on average      0.84%      0.95%      0.86%      (0.11)         (0.02)
assets
Return on average      0.90%      1.02%      0.92%      (0.12)         (0.02)
tangible assets
Return on average      5.61%      6.38%      5.72%      (0.77)         (0.11)
common equity
Return on average
tangible common        10.13%     11.56%     9.47%      (1.43)         0.66
equity
Efficiency ratio –     68.34%     67.66%     64.83%     0.68           3.51
Consolidated
Efficiency ratio –     66.60%     66.10%     62.68%     0.50           3.92
Bank
                                                                       
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using
a 35% tax rate.
(2) Operating earnings is calculated as earnings available to common
shareholders excluding gain (loss) on junior subordinated debentures carried
at fair value, net of tax, bargain purchase gain on acquisitions, net of tax,
goodwill impairment, and merger related expenses, net of tax.



Umpqua Holdings Corporation

Average Balances
(Unaudited)
                                                         Sequential  Year
                                                                        over
                 Quarter Ended:                            Quarter      Year
(Dollars in      Mar 31,      Dec 31,      Mar 31,      % Change    %
thousands)       2014          2013          2013                       Change
                                          
Temporary
investments &    $705,974      $625,405      $383,412      13%          84%
interest
bearing cash
Investment
securities,      1,562,849     1,664,716     2,303,159     (6)%         (32)%
taxable
Investment
securities,      231,520       236,552       260,335       (2)%         (11)%
tax-exempt
Loans held for   77,234        89,553        188,021       (14)%        (59)%
sale
Non-covered
loans and        7,384,555     7,298,622     6,655,764     1%           11%
leases
Covered loans    347,984      378,148      459,952       (8)%         (24)%
and leases
Total interest   10,310,116    10,292,996    10,250,643    0%           1%
earning assets
Goodwill &
other            776,006       777,188       684,631       0%           13%
intangible
assets, net
Total assets     11,638,357    11,624,359    11,496,844    0%           1%
                                                                        
Non-interest
bearing demand   2,414,001     2,452,554     2,155,110     (2)%         12%
deposits
Interest
bearing          6,696,029    6,661,933    6,937,232     1%           (3)%
deposits
Total deposits   9,110,030     9,114,487     9,092,342     0%           0%
Interest
bearing          7,376,780     7,326,763     7,515,749     1%           (2)%
liabilities
                                                                        
Shareholders’
equity -         1,738,680     1,734,583     1,730,538     0%           0%
common
Tangible
common equity    962,674       957,395       1,045,907     1%           (8)%
(1)

(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

Mortgage Banking Activity
(unaudited)
                                                        Sequential  Year
                                                                       over
                Quarter Ended:                            Quarter      Year
(Dollars in     Mar 31,      Dec 31,      Mar 31,      % Change    %
thousands)      2014          2013          2013                       Change
                                         
Mortgage
Servicing
Rights (MSR):
Mortgage
loans           $4,496,662    $4,362,499    $3,624,819    3%           24%
serviced for
others
MSR asset, at   49,220        47,765        32,097        3%           53%
fair value
MSR as % of
serviced        1.09%         1.09%         0.89%
portfolio
                                                                       
Mortgage
Banking
Revenue:
Origination     $8,421        $9,915        $23,057       (15)%        (63)%
and sale
Servicing       2,970         2,911         2,245         2%           32%
Change in
fair value of   (952)        3,131        (1,734)       (130)%       (45)%
MSR asset
Total           $10,439      $15,957      $23,568       (35)%        (56)%
                                                                       
                                                                       
Closed loan     $293,175      $359,569      $509,005      (18)%        (42)%
volume

Contact:

Umpqua Holdings Corporation
Ron Farnsworth, 503-727-4108
EVP/Chief Financial Officer
ronfarnsworth@umpquabank.com
Bradley Howes, 503-727-4226
SVP/Director of Investor Relations
bradhowes@umpquabank.com
 
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