Junior Subordinated Debentures

Following is information about the Company's wholly-owned trusts ("Trusts") as of September 30, 2015:



(dollars in thousands)		Issued		Carrying			Effective
Trust Name	Issue Date	Amount		Value (1)		Rate (2)	Rate (3)	Maturity Date
AT FAIR VALUE:
Umpqua Statutory Trust II	October 2002	$	20,619	$	15,346	Floating rate, LIBOR plus 3.35%, adjusted quarterly	4.89%	October 2032
Umpqua Statutory Trust III	October 2002	30,928		23,202		Floating rate, LIBOR plus 3.45%, adjusted quarterly	5.03%	November 2032
Umpqua Statutory Trust IV	December 2003	10,310		7,276		Floating rate, LIBOR plus 2.85%, adjusted quarterly	4.45%	January 2034
Umpqua Statutory Trust V	December 2003	10,310		7,248		Floating rate, LIBOR plus 2.85%, adjusted quarterly	4.46%	March 2034
Umpqua Master Trust I	August 2007	41,238		24,065		Floating rate, LIBOR plus 1.35%, adjusted quarterly	2.89%	September 2037
Umpqua Master Trust IB	September 2007	20,619		13,985		Floating rate, LIBOR plus 2.75%, adjusted quarterly	4.55%	December 2037
Sterling Capital Trust III	April 2003	14,433		11,263		Floating rate, LIBOR plus 3.25%, adjusted quarterly	4.55%	April 2033
Sterling Capital Trust IV	May 2003	10,310		7,960		Floating rate, LIBOR plus 3.15%, adjusted quarterly	4.50%	May 2033
Sterling Capital Statutory Trust V	May 2003	20,619		15,971		Floating rate, LIBOR plus 3.25%, adjusted quarterly	4.62%	June 2033
Sterling Capital Trust VI	June 2003	10,310		7,934		Floating rate, LIBOR plus 3.20%, adjusted quarterly	4.60%	September 2033
Sterling Capital Trust VII	June 2006	56,702		34,259		Floating rate, LIBOR plus 1.53%, adjusted quarterly	2.52%	June 2036
Sterling Capital Trust VIII	September 2006	51,547		31,462		Floating rate, LIBOR plus 1.63%, adjusted quarterly	3.22%	December 2036
Sterling Capital Trust IX	July 2007	46,392		27,020		Floating rate, LIBOR plus 1.40%, adjusted quarterly	2.81%	October 2037
Lynnwood Financial Statutory Trust I	March 2003	9,279		7,111		Floating rate, LIBOR plus 3.15%, adjusted quarterly	4.54%	March 2033
Lynnwood Financial Statutory Trust II	June 2005	10,310		6,550		Floating rate, LIBOR plus 1.80%, adjusted quarterly	3.36%	June 2035
Klamath First Capital Trust I	July 2001	15,464		13,013		Floating rate, LIBOR plus 3.75%, adjusted semiannually	5.03%	July 2031
		$	379,390	$	253,665
AT AMORTIZED COST:
HB Capital Trust I	March 2000	$	5,310	$	6,119	10.875%	8.52%	March 2030
Humboldt Bancorp Statutory Trust I	February 2001	5,155		5,751		10.200%	8.46%	February 2031
Humboldt Bancorp Statutory Trust II	December 2001	10,310		11,177		Floating rate, LIBOR plus 3.60%, adjusted quarterly	3.15%	December 2031
Humboldt Bancorp Statutory Trust III	September 2003	27,836		30,116		Floating rate, LIBOR plus 2.95%, adjusted quarterly	2.60%	September 2033
CIB Capital Trust	November 2002	10,310		11,055		Floating rate, LIBOR plus 3.45%, adjusted quarterly	3.12%	November 2032
Western Sierra Statutory Trust I	July 2001	6,186		6,186		Floating rate, LIBOR plus 3.58%, adjusted quarterly	3.88%	July 2031
Western Sierra Statutory Trust II	December 2001	10,310		10,310		Floating rate, LIBOR plus 3.60%, adjusted quarterly	3.94%	December 2031
Western Sierra Statutory Trust III	September 2003	10,310		10,310		Floating rate, LIBOR plus 2.90%, adjusted quarterly	3.19%	September 2033
Western Sierra Statutory Trust IV	September 2003	10,310		10,310		Floating rate, LIBOR plus 2.90%, adjusted quarterly	3.19%	September 2033
		96,037		101,334
	Total	$	475,427	$	354,999


(1)	Includes acquisition accounting adjustments, net of accumulated amortization, for junior subordinated debentures assumed in connection with previous mergers as well as fair value adjustments related to trusts recorded at fair value.


(2)	Contractual interest rate of junior subordinated debentures.


(3)	Effective interest rate based upon the carrying value as of September 30, 2015.

The Trusts are reflected as junior subordinated debentures in the Condensed Consolidated Balance Sheets. The common stock issued by the Trusts is recorded in other assets in the Condensed Consolidated Balance Sheets, and totaled $14.3 million at September 30, 2015 and December 31, 2014. As of September 30, 2015, all of the junior subordinated debentures were redeemable at par, at their applicable quarterly or semiannual interest payment dates.

The Company selected the fair value measurement option for junior subordinated debentures originally issued by the Company (the Umpqua Statutory Trusts) and for junior subordinated debentures acquired from Sterling. Refer to Note 15 for discussion of the rationale for election of fair value and the approach used to fair value the selected junior subordinated debentures.

Absent changes to the significant inputs utilized in the discounted cash flow model used to measure the fair value of these instruments, the discounts will reverse over time in a manner similar to the effective interest rate method as if these instruments were accounted for under the amortized cost method. Losses recorded resulting from the change in the fair value of these instruments were $1.6 million and $4.7 million for the three and nine months ended September 30, 2015, respectively, and $1.6 million and $3.5 million for the three and nine months ended September 30, 2014, respectively.