EXHIBIT 99.1 

Contacts:

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

UMPQUA REPORTS THIRD QUARTER 2016 RESULTS

Net earnings of $61.8 million, or $0.28 per common share

Operating earnings¹ of $69.6 million, or $0.32 per common share

Heightened focus on core deposit gathering; record quarterly deposit growth of $660 million, or 14% annualized

Continued progress in re-balancing loan portfolio and increasing asset sensitivity

PORTLAND, Ore. – October 19, 2016 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings available to common shareholders of $61.8 million for the third quarter of 2016, compared to $54.3 million for the second quarter of 2016 and $57.5 million for the third quarter of 2015. Earnings per diluted common share were $0.28 for the third quarter of 2016, compared to $0.25 for the second quarter of 2016 and $0.26 for the third quarter of 2015.

“Results for the third quarter of 2016 were driven by strong mortgage banking revenues, record deposit growth and continued disciplined expense management,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “We continue to take advantage of growth opportunities within our markets without sacrificing our credit culture and underwriting standards, enabling us to diversify the long-term portfolio mix and increase asset sensitivity, which we believe will best position Umpqua for any economic cycle or rate environment.”

Reconciliation of Net Earnings (GAAP) to Operating Earnings (non-GAAP):

The Company’s financial results include several significant items which have been excluded in the presentation of operating earnings, which is a non-GAAP financial measure. A summary of these items, and a reconciliation of earnings available to common shareholders (GAAP) to operating earnings (non-GAAP), is presented below. More information is provided in the non-GAAP financial measures section of this release, which we urge you to read.

¹ "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.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 2

	Quarter Ended
(In thousands, except per share data)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015
Net earnings available to common shareholders	$	61,778		$	54,255		$	47,540		$	62,923		$	57,523
Adjustments:
Loss from change in fair value of MSR asset	7,826			13,940			20,625			469			10,103
Gain on investment securities, net	—			(162		)	(696		)	(2,567		)	(220		)
Net loss on junior subordinated debentures carried at fair value	1,590			1,572			1,572			1,589			1,590
(Gain) loss from change in fair value of swap derivatives	(182		)	1,493			1,793			(715		)	1,181
Merger related expenses	2,011			6,634			3,450			3,712			5,991
Goodwill impairment	—			—			142			—			—
Exit or disposal costs	1,728			1,434			347			—			—
Total pre-tax adjustments	12,973			24,911			27,233			2,488			18,645
Income tax effect (1)	(5,188		)	(9,965		)	(10,836		)	(995		)	(7,458		)
Net adjustments	7,785			14,946			16,397			1,493			11,187
Operating earnings	$	69,563		$	69,201		$	63,937		$	64,416		$	68,710
Earnings per diluted share:
Earnings available to common shareholders	$	0.28		$	0.25		$	0.22		$	0.28		$	0.26
Operating earnings	$	0.32		$	0.31		$	0.29		$	0.29		$	0.31
(1) Income tax effect of operating earnings adjustments at 40% for tax-deductible items.

Financial Highlights (compared to prior quarter):

• Delivered solid financial performance:

◦ Net interest income increased by $694,000, driven primarily by higher average interest-earning assets and one additional day in the quarter, partially offset by a decline in net interest margin and a lower level of interest income arising from the accretion of the credit discount recorded on loans acquired from Sterling;

◦ Provision for loan and lease losses increased by $2.5 million, driven primarily by continued strong growth in the leasing and equipment finance portfolio and slightly higher net charge-offs;

◦ Non-interest income increased by $6.1 million, driven primarily by a $10.4 million increase in mortgage banking revenue. This was partially offset by $4.4 million in lower gains related to portfolio loan sales. Excluding the impact of non-operating items¹, total non-interest income decreased by $1.6 million;

◦ Non-interest expense decreased by $7.3 million, driven primarily by a decline in merger-related expenses. Excluding the impact of non-operating items¹, total noninterest expense decreased by $3.0 million, driven primarily by lower salaries and benefits expense;

• Strong balance sheet and stable credit quality:

◦ Net loan and lease growth of $36.8 million, or 1% annualized. Lower net loan growth for the quarter was driven primarily by higher levels of refinance and early pay-offs, predominately within the non-owner occupied commercial real estate and multifamily loan portfolios. The Company also sold $103.5 million of longer-term fixed rate portfolio residential mortgage loans. Gross loan and lease growth (prior to the impact of these sales) was $140.3 million, or 3% annualized;

¹ "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.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

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◦ Record deposit growth of $660.3 million, or 14% annualized, reflecting initiatives across the organization to focus on core deposit gathering;

◦ Loan to deposit ratio decreased to 92% from 95%;

◦ Non-performing assets decreased to $62.3 million, or 0.25% of total assets, from $64.6 million, or 0.27% of total assets;

• Prudently managed capital:

◦ Book value increased to $17.80 per share from $17.70 per share, and tangible book value¹increased to $9.51 from $9.41 per share;

◦ Estimated total risk-based capital ratio of 14.4% and estimated Tier 1 common to risk weighted assets ratio of 11.1%;

◦ Declared quarterly cash dividend of $0.16 per common share; and

◦ Repurchased 325,000 shares of common stock for $5.0 million.

Balance Sheet

Total consolidated assets were $24.7 billionas of September 30, 2016, compared to $24.1 billion as of June 30, 2016 and $23.2 billion as of September 30, 2015. Including secured off-balance sheet lines of credit at the Company, total available liquidity was $9.3 billion as of September 30, 2016, representing 38% of total assets and 49% of total deposits.

Gross loans and leases were $17.4 billion as of September 30, 2016, an increase of $36.8 million, or 1% annualized, from $17.4 billion as of June 30, 2016. During the third quarter of 2016, the Company sold $103.5 million of portfolio residential mortgage loans. Excluding the impact of the loan sales, gross loan growth was $140.3 million, or 3% annualized. The Company experienced growth in both its commercial (including leasing & equipment finance) and consumer loan portfolios. This growth was partially offset by declines in the non-owner occupied commercial real estate and multifamily loan portfolios, primarily due to heightened refinance and early pay-off activity during the quarter.

Total deposits were $18.9 billion as of September 30, 2016, an increase of $660.3 million, or 14% annualized, from $18.3 billion as of June 30, 2016. This increase was primarily attributable to growth in non-interest bearing demand, money market and savings accounts.

Net Interest Income

Net interest income increased by $694,000 from the prior quarter, driven primarily by higher average interest earning assets and one additional day in the quarter. This was partially offset by a lower average yield earned on interest-earning assets and a $1.0 million linked quarter decline in the level of interest income arising from the accretion of the credit discount recorded on loans acquired from Sterling.

The Company’s net interest margin was 3.95% for the third quarter of 2016, down from 4.07% for the second quarter of 2016. This decrease reflects higher average interest bearing cash, lower average yields on loans and leases resulting from the continued low interest-rate environment and the Company's ongoing efforts to manage the target long-term loan portfolio mix, as well as an increase in premium amortization on the mortgage-backed securities portfolio and a lower level of accretion of the credit discount.

¹ "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.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

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Credit Quality

Under acquisition accounting, loans (including those considered non-performing) acquired from Sterling were recorded at their estimated fair value, and the related allowance for loan losses was eliminated. As a result, the Company wrote down the value of the loan and lease portfolio acquired from Sterling as of the acquisition date. The credit portion of the fair value mark is not reflected in the reported allowance for loan and lease losses, or its related allowance coverage ratios, but we believe should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.

Loans acquired with significant deteriorated credit quality are accounted for as purchased credit impaired pools.  Accordingly, loans included in the purchased credit impaired pools are not reported as non-performing loans based upon their individual performance status.

During the third quarter of 2016, the Company reported $9.1 million of accretion related to the Sterling credit discount in interest income, compared to $10.1 million in the prior quarter. As of September 30, 2016, the purchased non-credit impaired loans had approximately $50.3 million of remaining credit discount that will accrete into interest income over the life of the loans, and the purchased credit impaired loan pools had approximately $34.5 million of remaining total discount.

The allowance for loan and lease losses was $133.7 million, or 0.77% of loans and leases, as of September 30, 2016. To provide better comparability to prior periods, on a pro-forma basis this ratio would have been approximately 1.3% at both September 30, 2016 and June 30, 2016, after grossing up the allowance for loan and lease losses and total loans and leases by the amount of the credit discount remaining as of the respective quarter-end.

The provision for loan and lease losses was $13.1 million for the third quarter of 2016, a $2.5 million increase from the prior quarter level. This increase was driven primarily by strong growth in the leasing and equipment finance portfolio, along with slightly higher net charge-offs. Charge-offs, net of recoveries, increased to $10.4 million for the third quarter of 2016, compared to $9.8 million in the prior quarter. Non-performing assets decreased to $62.3 million, or 0.25% of total assets, as of September 30, 2016, compared to $64.6 million, or 0.27% of total assets, as of June 30, 2016. This decrease was driven primarily by an $8.1 million decline in other real estate owned, partially offset by a $5.8 million increase in non-performing loans.

Non-interest Income

Total reported non-interest income was $80.7 million for the third quarter of 2016, up $6.1 million from the prior quarter, driven primarily by a lower negative fair value adjustment on the MSR asset. The current quarter non-interest income included a negative adjustment of $7.8 million, compared to a negative adjustment of $13.9 million in the prior quarter, attributable to the change in long-term interest rates during the quarter, and its impact on the prepayment speed assumption for the MSR asset.

On an operating basis¹, non-interest income decreased by $1.6 million from the prior quarter, reflecting a $4.4 million linked quarter decline in gains related to portfolio loan sales. This was partially offset by higher revenue from the origination and sale of residential mortgages and servicing income. Home lending gain on sale margin increased to 4.08%, compared to 4.02% in the prior quarter and for sale mortgage originations increased by 7% from the prior quarter level. Of the current quarter’s mortgage production, 68% related to purchase activity, as compared to 70% for the prior quarter and 70% for the same period in the prior year.

¹ "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.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 5

Revenue related to the servicing of residential mortgage loans was $9.4 million for the third quarter of 2016, an increase of 9% from the prior quarter, reflecting growth in the residential mortgage loans serviced for others portfolio.

Non-interest Expense

Non-interest expense was $181.2 million for the third quarter of 2016, which included $2.0 million of merger-related expenses and $1.7 million of exit or disposal costs. This compares to $188.5 million, including $6.6 million of merger-related expenses and $1.4 million of exit or disposal costs for the second quarter of 2016. On an operating basis¹, non-interest expense decreased by $3.0 million from the prior quarter, driven primarily by lower compensation and other expense.

Capital

As of September 30, 2016, the Company’s book value per share increased to $17.80, from $17.70 in the prior quarter, and its tangible book value per common share¹ increased to $9.51, from $9.41 in the prior quarter. During the third quarter of 2016, the Company repurchased 325,000 shares of common stock for $5.0 million. For the nine months ended September 30, 2016, the Company had repurchased 560,000 shares for $8.4 million.

The Company’s estimated total risk-based capital ratio was 14.4% and its estimated Tier 1 common to risk weighted

assets ratio was 11.1% as of September 30, 2016. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of September 30, 2016 are estimates, pending completion and filing of the Company’s regulatory reports.

¹ "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.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

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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.

The Company incurs significant expenses related to the completion and integration of mergers and acquisitions. It also recognizes gains or losses on its 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. Additionally, it 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. The Company recognizes gains and losses related to the change in the fair value of its MSR, which are primarily tied to movements in interest rates, and are not indicative of the fundamental operating activities for the period. It also recognizes gains or losses related to the change in the fair value of its swap derivatives, which are driven by movements in interest rates and are beyond our control. On occasion, the Company may sell certain securities in its investment portfolio, and recognize an associated gain or loss, which can be highly discretionary based on the timing of the sales, market opportunities, and interest rates, and therefore are not reflective of the Company's operating performance. The Company also may incur expenses related to the exit or disposal of certain business activities, such as the consolidation of bank branches, which do not reflect the on-going operating performance of the Company. Lastly, the Company may recognize one-time bargain purchase gains on certain acquisitions that are not reflective of the Company’s on-going earnings power.

Accordingly, management believes that our operating results are best measured on a comparative basis excluding the after-tax impact of merger-related expenses, gains or losses on junior subordinated debentures measured at fair value, gains or losses from the change in fair value of the MSR, gains or losses from the change in fair value of swap derivatives, net gains or losses on investment securities, exit or disposal costs and other charges related to business combinations such as goodwill impairment charges or bargain purchase gains. The Company defines operating earnings as earnings available to common shareholders before these items, and calculates 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 net 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:

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

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	Quarter ended															% Change
(In thousands, except per share data)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Seq. Quarter		Year over Year
Net earnings available to common shareholders	$	61,778		$	54,255		$	47,540		$	62,923		$	57,523		14	%	7	%
Adjustments:
Loss from change in fair value of MSR asset	7,826			13,940			20,625			469			10,103			(44	)%	(23	)%
Gain on investment securities, net	—			(162		)	(696		)	(2,567		)	(220		)	(100	)%	(100	)%
Net loss on junior subordinated debentures carried at fair value	1,590			1,572			1,572			1,589			1,590			1	%	0	%
(Gain) loss from change in fair value of swap derivatives	(182		)	1,493			1,793			(715		)	1,181			(112	)%	(115	)%
Merger related expenses	2,011			6,634			3,450			3,712			5,991			(70	)%	(66	)%
Goodwill impairment	—			—			142			—			—			nm		nm
Exit or disposal costs	1,728			1,434			347			—			—			21	%	nm
Total pre-tax adjustments	12,973			24,911			27,233			2,488			18,645			(48	)%	(30	)%
Income tax effect (1)	(5,188		)	(9,965		)	(10,836		)	(995		)	(7,458		)	(48	)%	(30	)%
Net adjustments	7,785			14,946			16,397			1,493			11,187			(48	)%	(30	)%
Operating earnings	$	69,563		$	69,201		$	63,937		$	64,416		$	68,710		1	%	1	%
Earnings per diluted share:
Earnings available to common shareholders	$	0.28		$	0.25		$	0.22		$	0.28		$	0.26		12	%	8	%
Operating earnings	$	0.32		$	0.31		$	0.29		$	0.29		$	0.31		3	%	3	%
	Nine months ended						% Change
	Sep 30, 2016			Sep 30, 2015			Year over Year
Net earnings available to common shareholders	$	163,573		$	159,259		3		%
Adjustments:
Loss from change in fair value of MSR asset	42,391			20,254			109		%
Gain on investment securities, net	(858		)	(355		)	142		%
Net loss on junior subordinated debentures carried at fair value	4,734			4,717			0		%
Loss from change in fair value of swap derivatives	3,104			554			460		%
Merger related expenses	12,095			41,870			(71		)%
Goodwill impairment	142			—			nm
Exit or disposal costs	3,509			—			nm
Total pre-tax adjustments	65,117			67,040			(3		)%
Income tax effect (1)	(25,990		)	(26,816		)	(3		)%
Net adjustments	39,127			40,224			(3		)%
Operating earnings	$	202,700		$	199,483		2		%
Earnings per diluted share:
Earnings available to common shareholders	$	0.74		$	0.72		3		%
Operating earnings	$	0.92		$	0.90		2		%
(1) Income tax effect of operating earnings adjustments at 40% for tax-deductible items.
nm = not meaningful.

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October 19, 2016

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The following tables provide the reconciliation of non-interest income (GAAP) to non-interest income, on an operating basis, (non-GAAP), and non-interest expense (GAAP) to non-interest expense, on an operating basis, (non-GAAP) for the periods presented:

	Quarter ended
(Dollars in thousands)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015
Non-interest income (GAAP)	$	80,710		$	74,659		$	45,951		$	69,345		$	61,372
Adjustments:
Loss from change in fair value of MSR asset	7,826			13,940			20,625			469			10,103
(Gain) loss from change in fair value of swap derivatives	(182		)	1,493			1,793			(715		)	1,181
Net loss on junior subordinated debentures carried at fair value	1,590			1,572			1,572			1,589			1,590
Gain on investment securities, net	—			(162		)	(696		)	(2,567		)	(220		)
Non-interest income (operating basis)	$	89,944		$	91,502		$	69,245		$	68,121		$	74,026
	Quarter ended
	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015
Non-interest expense (GAAP)	$	181,187		$	188,511		183,989			$	185,911		$	183,194
Adjustments:
Merger related expenses	(2,011		)	(6,634		)	(3,450		)	(3,712		)	(5,991		)
Goodwill impairment	—			—			(142		)	—			—
Exit or disposal costs	(1,728		)	(1,434		)	(347		)	—			—
Non-interest expense (operating basis)	$	177,448		$	180,443		$	180,050		$	182,199		$	177,203
	Nine months ended
(Dollars in thousands)	Sep 30, 2016			Sep 30, 2015
Non-interest income (GAAP)	$	201,320		$	206,379
Adjustments:
Loss from change in fair value of MSR asset	42,391			20,254
Loss from change in fair value of swap derivatives	3,104			554
Net loss on junior subordinated debentures carried at fair value	4,734			4,717
Gain on investment securities, net	(858		)	(355		)
Non-interest income (operating basis)	$	250,691		$	231,549
	Nine months ended
	Sep 30, 2016			Sep 30, 2015
Non-interest expense (GAAP)	$	553,687		$	577,731
Adjustments:
Merger related expenses	(12,095		)	(41,870		)
Goodwill impairment	(142		)	—
Exit or disposal costs	(3,509		)	—
Non-interest expense (operating basis)	$	537,941		$	535,861

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 9

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).

(In thousands, except per share data)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015
Total shareholders' equity	$	3,920,208		$	3,902,158		$	3,878,630		$	3,849,334		$	3,835,552
Subtract:
Goodwill	1,787,651			1,787,651			1,787,651			1,787,793			1,788,640
Other intangible assets, net	38,753			40,620			42,948			45,508			48,314
Tangible common shareholders' equity	$	2,093,804		$	2,073,887		$	2,048,031		$	2,016,033		$	1,998,598
Total assets	$	24,744,214		$	24,132,507		$	23,935,686		$	23,406,381		$	23,181,006
Subtract:
Goodwill	1,787,651			1,787,651			1,787,651			1,787,793			1,788,640
Other intangible assets, net	38,753			40,620			42,948			45,508			48,314
Tangible assets	$	22,917,810		$	22,304,236		$	22,105,087		$	21,573,080		$	21,344,052
Common shares outstanding at period end	220,207			220,482			220,171			220,171			220,217
Common equity ratio	15.84		%	16.17		%	16.20		%	16.45		%	16.55		%
Tangible common equity ratio	9.14		%	9.30		%	9.26		%	9.35		%	9.36		%
Book value per common share	$	17.80		$	17.70		$	17.62		$	17.48		$	17.42
Tangible book value per common share	$	9.51		$	9.41		$	9.30		$	9.16		$	9.08

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 also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon, and Pivotus Ventures, an innovation studio headquartered in Silicon Valley focused on creating key technologies and business models that transform finance and commerce. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquaholdingscorp.com.

Earnings Conference Call Information

The Company will host its third quarter 2016 earnings conference call on Thursday, October 20, 2016, at 10:00 a.m. PST (1:00 p.m. EST). During the call, the Company will provide an update on recent activities and discuss its third quarter 2016 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (800) 732-8711 ten minutes prior to the start time and enter conference ID: 6636871. A re-broadcast will be available approximately two hours after the call by dialing (888) 203-1112 and entering conference ID 6636871. The earnings conference call will also be available as an audiocast, which can be accessed on the Company’s investor relations page at www.umpquaholdingscorp.com.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 10

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 credit discount accretion related to loans acquired from Sterling Financial Corporation, loan and lease growth and loan sales, credit quality, asset sensitivity, and trends in the loan portfolio mix. 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, prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; lack of strategic growth opportunities or our failure to execute on those opportunities; our inability to effectively manage problem credits; our inability to successfully implement efficiency initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations.

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October 19, 2016

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Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
	Quarter Ended															% Change
(In thousands, except per share data)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	212,037		$	210,290		$	217,928		$	219,440		$	218,975		1	%	(3	)%
Interest and dividends on investments:
Taxable	10,779			11,963			13,055			12,654			11,882			(10	)%	(9	)%
Exempt from federal income tax	2,181			2,183			2,235			2,363			2,393			0	%	(9	)%
Dividends	332			365			366			326			112			(9	)%	196	%
Temporary investments & interest bearing deposits	1,090			652			480			422			440			67	%	148	%
Total interest income	226,419			225,453			234,064			235,205			233,802			0	%	(3	)%
Interest expense:
Deposits	8,999			8,540			8,413			7,905			7,450			5	%	21	%
Repurchase agreements	32			32			36			39			43			0	%	(26	)%
Term debt	3,558			3,848			4,186			3,885			3,629			(8	)%	(2	)%
Junior subordinated debentures	3,938			3,835			3,727			3,542			3,465			3	%	14	%
Total interest expense	16,527			16,255			16,362			15,371			14,587			2	%	13	%
Net interest income	209,892			209,198			217,702			219,834			219,215			0	%	(4	)%
Provision for loan and lease losses	13,091			10,589			4,823			4,545			8,153			24	%	61	%
Non-interest income:
Service charges on deposits	15,762			15,667			14,516			15,039			15,616			1	%	1	%
Brokerage revenue	4,129			4,580			4,094			4,061			5,003			(10	)%	(17	)%
Residential mortgage banking revenue, net	47,206			36,783			15,426			32,440			24,041			28	%	96	%
Gain on investment securities, net	—			162			696			2,567			220			(100	)%	(100	)%
Gain on loan sales	1,285			5,640			2,371			1,729			5,212			(77	)%	(75	)%
Loss on junior subordinated debentures carried at fair value	(1,590		)	(1,572		)	(1,572		)	(1,589		)	(1,590		)	1	%	0	%
BOLI income	2,116			2,152			2,139			1,841			2,165			(2	)%	(2	)%
Other income	11,802			11,247			8,281			13,257			10,705			5	%	10	%
Total non-interest income	80,710			74,659			45,951			69,345			61,372			8	%	32	%
Non-interest expense:
Salaries and employee benefits	105,341			107,545			106,538			106,203			106,482			(2	)%	(1	)%
Occupancy and equipment, net	38,181			37,850			38,295			38,722			37,235			1	%	3	%
Intangible amortization	1,867			2,328			2,560			2,806			2,806			(20	)%	(33	)%
FDIC assessments	4,109			3,693			3,721			3,742			3,369			11	%	22	%
(Gain) loss on other real estate owned, net	(14		)	(1,457		)	1,389			(242		)	(158		)	(99	)%	(91	)%
Merger related expenses	2,011			6,634			3,450			3,712			5,991			(70	)%	(66	)%
Goodwill impairment	—			—			142			—			—			nm		nm
Other expense	29,692			31,918			27,894			30,968			27,469			(7	)%	8	%
Total non-interest expense	181,187			188,511			183,989			185,911			183,194			(4	)%	(1	)%
Income before provision for income taxes	96,324			84,757			74,841			98,723			89,240			14	%	8	%
Provision for income taxes	34,515			30,470			27,272			35,704			31,633			13	%	9	%
Net income	61,809			54,287			47,569			63,019			57,607			14	%	7	%
Dividends and undistributed earnings allocated to participating securities	31			32			29			96			84			(3	)%	(63	)%
Net earnings available to common shareholders	$	61,778		$	54,255		$	47,540		$	62,923		$	57,523		14	%	7	%
Weighted average basic shares outstanding	220,291			220,421			220,227			220,202			220,297			0	%	0	%
Weighted average diluted shares outstanding	220,751			220,907			221,052			220,930			220,904			0	%	0	%
Earnings per common share – basic	$	0.28		$	0.25		$	0.22		$	0.29		$	0.26		12	%	8	%
Earnings per common share – diluted	$	0.28		$	0.25		$	0.22		$	0.28		$	0.26		12	%	8	%
nm = not meaningful

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 12

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
	Nine months ended						% Change
(In thousands, except per share data)	Sep 30, 2016			Sep 30, 2015			Year over Year
Interest income
Loans and leases	$	640,255		$	649,993		(1	)%
Interest and dividends on investments:
Taxable	35,797			35,188			2	%
Exempt from federal income tax	6,599			7,284			(9	)%
Dividends	1,063			382			178	%
Temporary investments & interest bearing deposits	2,222			1,814			22	%
Total interest income	685,936			694,661			(1	)%
Interest expense
Deposits	25,952			21,934			18	%
Repurchase agreements	100			134			(25	)%
Term debt	11,592			10,585			10	%
Junior subordinated debentures	11,500			10,208			13	%
Total interest expense	49,144			42,861			15	%
Net interest income	636,792			651,800			(2	)%
Provision for loan and lease losses	28,503			32,044			(11	)%
Non-interest income
Service charges on deposits	45,945			44,701			3	%
Brokerage revenue	12,803			14,420			(11	)%
Residential mortgage banking revenue, net	99,415			92,282			8	%
Gain on investment securities, net	858			355			142	%
Gain on loan sales	9,296			20,651			(55	)%
Loss on junior subordinated debentures carried at fair value	(4,734		)	(4,717		)	0	%
BOLI Income	6,407			6,510			(2	)%
Other income	31,330			32,177			(3	)%
Total non-interest income	201,320			206,379			(2	)%
Non-interest expense
Salaries and employee benefits	319,424			324,733			(2	)%
Occupancy and equipment, net	114,326			104,253			10	%
Intangible amortization	6,755			8,419			(20	)%
FDIC assessments	11,523			9,738			18	%
(Gain) loss on other real estate owned, net	(82		)	2,136			(104	)%
Merger related expenses	12,095			41,870			(71	)%
Goodwill impairment	142			—			nm
Other expense	89,504			86,582			3	%
Total non-interest expense	553,687			577,731			(4	)%
Income before provision for income taxes	255,922			248,404			3	%
Provision for income taxes	92,257			88,884			4	%
Net income	163,665			159,520			3	%
Dividends and undistributed earnings
allocated to participating securities	92			261			(65	)%
Net earnings available to common shareholders	$	163,573		$	159,259		3	%
Weighted average basic shares outstanding	220,313			220,370			0	%
Weighted average diluted shares outstanding	220,936			221,062			0	%
Earnings per common share – basic	$	0.74		$	0.72		3	%
Earnings per common share – diluted	$	0.74		$	0.72		3	%
nm = not meaningful

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 13

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																% Change
(In thousands, except per share data)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	364,013		$	369,535		$	299,871		$	277,645		$	283,773		(1	)%	28	%
Interest bearing cash and temporary investments	1,102,428			535,828			613,049			496,080			673,843			106	%	64	%
Investment securities:
Trading, at fair value	10,866			10,188			9,791			9,586			9,509			7	%	14	%
Available for sale, at fair value	2,520,037			2,482,072			2,542,535			2,522,539			2,482,478			2	%	2	%
Held to maturity, at amortized cost	4,302			4,382			4,525			4,609			4,699			(2	)%	(8	)%
Loans held for sale	565,624			552,681			659,264			363,275			398,015			2	%	42	%
Loans and leases	17,392,051			17,355,240			16,955,583			16,866,536			16,406,636			0	%	6	%
Allowance for loan and lease losses	(133,692		)	(131,042		)	(130,243		)	(130,322		)	(130,133		)	2	%	3	%
Loans and leases, net	17,258,359			17,224,198			16,825,340			16,736,214			16,276,503			0	%	6	%
Restricted equity securities	47,537			47,542			47,545			46,949			46,904			0	%	1	%
Premises and equipment, net	306,287			312,647			322,822			328,734			330,306			(2	)%	(7	)%
Goodwill	1,787,651			1,787,651			1,787,651			1,787,793			1,788,640			0	%	0	%
Other intangible assets, net	38,753			40,620			42,948			45,508			48,314			(5	)%	(20	)%
Residential mortgage servicing rights, at fair value	114,446			112,095			117,172			131,817			124,814			2	%	(8	)%
Other real estate owned	8,309			16,437			20,411			22,307			23,892			(49	)%	(65	)%
Bank owned life insurance	297,561			295,444			293,703			291,892			297,321			1	%	0	%
Deferred tax assets, net	27,587			63,038			108,865			138,082			149,320			(56	)%	(82	)%
Other assets	290,454			278,149			240,194			203,351			242,675			4	%	20	%
Total assets	$	24,744,214		$	24,132,507		$	23,935,686		$	23,406,381		$	23,181,006		3	%	7	%
Liabilities:
Deposits	$	18,918,780		$	18,258,474		$	18,162,974		$	17,707,189		$	17,467,024		4	%	8	%
Securities sold under agreements to repurchase	309,463			360,234			325,203			304,560			323,722			(14	)%	(4	)%
Term debt	902,678			902,999			903,382			888,769			889,358			0	%	1	%
Junior subordinated debentures, at fair value	260,114			258,660			256,917			255,457			253,665			1	%	3	%
Junior subordinated debentures, at amortized cost	101,012			101,093			101,173			101,254			101,334			0	%	0	%
Other liabilities	331,959			348,889			307,407			299,818			310,351			(5	)%	7	%
Total liabilities	20,824,006			20,230,349			20,057,056			19,557,047			19,345,454			3	%	8	%
Shareholders' equity:
Common stock	3,514,858			3,517,240			3,518,792			3,520,591			3,517,751			0	%	0	%
Retained earnings	388,678			362,258			343,421			331,301			303,729			7	%	28	%
Accumulated other comprehensive income (loss)	16,672			22,660			16,417			(2,558		)	14,072			(26	)%	18	%
Total shareholders' equity	3,920,208			3,902,158			3,878,630			3,849,334			3,835,552			0	%	2	%
Total liabilities and shareholders' equity	$	24,744,214		$	24,132,507		$	23,935,686		$	23,406,381		$	23,181,006		3	%	7	%
Common shares outstanding at period end	220,207			220,482			220,171			220,171			220,217			0	%	0	%
Book value per common share	$	17.80		$	17.70		$	17.62		$	17.48		$	17.42		1	%	2	%
Tangible book value per common share	$	9.51		$	9.41		$	9.30		$	9.16		$	9.08		1	%	5	%
Tangible equity - common	$	2,093,804		$	2,073,887		$	2,048,031		$	2,016,033		$	1,998,598		1	%	5	%
Tangible common equity to tangible assets	9.14		%	9.30		%	9.26		%	9.35		%	9.36		%	(0.16	)	(0.22	)
nm = not meaningful

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 14

Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)
(Dollars in thousands)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			% Change
	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Loans & leases:
Commercial real estate:
Non-owner occupied term, net	$	3,280,660		$	3,377,464		$	3,202,488		$	3,226,836		$	3,155,102		(3	)%	4	%
Owner occupied term, net	2,573,942			2,581,786			2,714,766			2,582,874			2,651,505			0	%	(3	)%
Multifamily, net	2,968,019			3,004,890			2,959,975			3,151,516			3,003,904			(1	)%	(1	)%
Commercial construction, net	388,934			367,879			338,801			271,119			273,102			6	%	42	%
Residential development, net	127,447			111,941			121,025			99,459			94,380			14	%	35	%
Commercial:
Term, net	1,480,173			1,440,704			1,412,816			1,408,676			1,372,927			3	%	8	%
Lines of credit & other, net	1,142,946			1,116,876			1,036,389			1,036,733			1,009,322			2	%	13	%
Leases & equipment finance, net	927,857			884,506			791,798			729,161			679,033			5	%	37	%
Residential real estate:
Mortgage, net	2,868,337			2,882,076			2,879,600			2,909,306			2,758,931			0	%	4	%
Home equity lines & loans, net	1,008,219			989,814			943,254			923,667			910,287			2	%	11	%
Consumer & other, net	625,517			597,304			554,671			527,189			498,143			5	%	26	%
Total, net of deferred fees and costs	$	17,392,051		$	17,355,240		$	16,955,583		$	16,866,536		$	16,406,636		0	%	6	%
Loan & leases mix:
Commercial real estate:
Non-owner occupied term, net	19		%	19		%	19		%	19		%	19		%
Owner occupied term, net	15		%	15		%	16		%	15		%	16		%
Multifamily, net	17		%	17		%	17		%	19		%	18		%
Commercial construction, net	2		%	2		%	2		%	2		%	2		%
Residential development, net	1		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	8		%	8		%	8		%	9		%	8		%
Lines of credit & other, net	7		%	6		%	6		%	6		%	6		%
Leases & equipment finance, net	5		%	6		%	5		%	4		%	4		%
Residential real estate:
Mortgage, net	16		%	17		%	17		%	17		%	17		%
Home equity lines & loans, net	6		%	6		%	6		%	5		%	6		%
Consumer & other, net	4		%	3		%	3		%	3		%	3		%
Total	100		%	100		%	100		%	100		%	100		%

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 15

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
(Dollars in thousands)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			% Change
	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	5,993,793		$	5,475,986		$	5,460,310		$	5,318,591		$	5,207,129		9	%	15	%
Demand, interest bearing	2,218,782			2,186,164			2,178,446			2,157,376			2,098,223			1	%	6	%
Money market	6,841,700			6,782,232			6,814,160			6,599,516			6,514,174			1	%	5	%
Savings	1,303,816			1,254,675			1,213,049			1,136,809			1,102,611			4	%	18	%
Time	2,560,689			2,559,417			2,497,009			2,494,897			2,544,887			0	%	1	%
Total	$	18,918,780		$	18,258,474		$	18,162,974		$	17,707,189		$	17,467,024		4	%	8	%
Total core deposits (1)	$	17,257,663		$	16,598,065		$	16,559,943		$	16,102,743		$	15,940,229		4	%	8	%
Deposit mix:
Demand, non-interest bearing	31		%	30		%	30		%	30		%	30		%
Demand, interest bearing	12		%	12		%	12		%	12		%	12		%
Money market	36		%	37		%	37		%	37		%	37		%
Savings	7		%	7		%	7		%	6		%	6		%
Time	14		%	14		%	14		%	15		%	15		%
Total	100		%	100		%	100		%	100		%	100		%
Number of open accounts:
Demand, non-interest bearing	382,687			379,996			375,913			371,745			370,128
Demand, interest bearing	83,501			84,434			85,731			86,745			88,171
Money market	56,128			56,492			56,927			57,194			57,622
Savings	158,760			157,849			156,846			154,176			153,534
Time	47,689			47,850			47,794			47,672			48,168
Total	728,765			726,621			723,211			717,532			717,623
Average balance per account:
Demand, non-interest bearing	$	15.7		$	14.4		$	14.5		$	14.3		$	14.1
Demand, interest bearing	26.6			25.9			25.4			24.9			23.8
Money market	121.9			120.1			119.7			115.4			113.1
Savings	8.2			7.9			7.7			7.4			7.2
Time	53.7			53.5			52.2			52.3			52.8
Total	$	26.0		$	25.1		$	25.1		$	24.7		$	24.3

(1) Core deposits are defined as total deposits less time deposits greater than $100,000.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 16

Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
(Unaudited)
	Quarter Ended															% Change
(Dollars in thousands)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status	$	27,791		$	25,136		$	30,045		$	29,215		$	30,989		11	%	(10	)%
Loans and leases past due 90+ days & accruing (1)	26,189			23,076			22,144			15,169			9,967			13	%	163	%
Total non-performing loans and leases	53,980			48,212			52,189			44,384			40,956			12	%	32	%
Other real estate owned	8,309			16,437			20,411			22,307			23,892			(49	)%	(65	)%
Total non-performing assets	$	62,289		$	64,649		$	72,600		$	66,691		$	64,848		(4	)%	(4	)%
Performing restructured loans and leases	$	36,645		$	40,848		$	31,409		$	31,355		$	35,706		(10	)%	3	%
Loans and leases past due 31-89 days	$	39,708		$	29,640		$	29,054		$	28,423		$	28,919		34	%	37	%
Loans and leases past due 31-89 days to total loans and leases	0.23		%	0.17		%	0.17		%	0.17		%	0.18		%
Non-performing loans and leases to total loans and leases (1)	0.31		%	0.28		%	0.31		%	0.26		%	0.25		%
Non-performing assets to total assets (1)	0.25		%	0.27		%	0.30		%	0.28		%	0.28		%

(1) Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $7.3 million, $11.3 million, $14.2 million, $19.2 million, and $18.7 million at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 17

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
	Quarter Ended															% Change
(Dollars in thousands)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Seq. Quarter		Year over Year
Allowance for loan and lease losses:
Balance beginning of period	$	131,042		$	130,243		$	130,322		$	130,133		$	127,071
Provision for loan and lease losses	13,091			10,589			4,823			4,545			8,153			24	%	61	%
Charge-offs	(13,088		)	(12,682		)	(7,850		)	(7,108		)	(8,476		)	3	%	54	%
Recoveries	2,647			2,892			2,948			2,752			3,385			(8	)%	(22	)%
Net charge-offs	(10,441		)	(9,790		)	(4,902		)	(4,356		)	(5,091		)	7	%	105	%
Total allowance for loan and lease losses	133,692			131,042			130,243			130,322			130,133			2	%	3	%
Reserve for unfunded commitments	3,536			3,531			3,482			3,574			3,081			0	%	15	%
Total allowance for credit losses	$	137,228		$	134,573		$	133,725		$	133,896		$	133,214		2	%	3	%
Net charge-offs to average loans and leases (annualized)	0.24		%	0.23		%	0.12		%	0.10		%	0.13		%
Recoveries to gross charge-offs	20.22		%	22.80		%	37.55		%	38.72		%	39.94		%
Allowance for loan and lease losses to loans and leases	0.77		%	0.76		%	0.77		%	0.77		%	0.79		%
Allowance for credit losses to loans and leases	0.79		%	0.78		%	0.79		%	0.79		%	0.81		%

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 18

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
	Nine months ended						% Change
(Dollars in thousands)	Sep 30, 2016			Sep 30, 2015			Year over Year
Allowance for loan and lease losses:
Balance beginning of period	$	130,322		$	116,167
Provision for loan and lease losses	28,503			32,044			(11	)%
Charge-offs	(33,620		)	(28,463		)	18	%
Recoveries	8,487			10,385			(18	)%
Net charge-offs	(25,133		)	(18,078		)	39	%
Total allowance for loan and lease losses	133,692			130,133			3	%
Reserve for unfunded commitments	3,536			3,081			15	%
Total allowance for credit losses	$	137,228		$	133,214		3	%
Net charge-offs to average loans and leases (annualized)	0.20		%	0.15		%
Recoveries to gross charge-offs	25.24		%	36.49		%

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 19

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
	Quarter Ended										% Change
	Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Seq. Quarter		Year over Year
Average Rates:
Yield on loans and leases	4.75	%	4.81	%	5.07	%	5.21	%	5.30	%	(0.06	)	(0.55	)
Yield on loans held for sale	3.79	%	3.80	%	4.06	%	3.83	%	4.10	%	(0.01	)	(0.31	)
Yield on taxable investments	1.96	%	2.14	%	2.32	%	2.26	%	2.11	%	(0.18	)	(0.15	)
Yield on tax-exempt investments (1)	4.68	%	4.73	%	4.73	%	4.76	%	4.73	%	(0.05	)	(0.05	)
Yield on interest bearing cash and temporary investments	0.50	%	0.51	%	0.54	%	0.28	%	0.25	%	(0.01	)	0.25
Total yield on earning assets (1)	4.26	%	4.39	%	4.66	%	4.69	%	4.73	%	(0.13	)	(0.47	)
Cost of interest bearing deposits	0.28	%	0.27	%	0.27	%	0.26	%	0.24	%	0.01		0.04
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.04	%	0.04	%	0.05	%	0.05	%	0.05	%	—		(0.01	)
Cost of term debt	1.57	%	1.72	%	1.88	%	1.73	%	1.62	%	(0.15	)	(0.05	)
Cost of junior subordinated debentures	4.36	%	4.30	%	4.20	%	3.96	%	3.89	%	0.06		0.47
Total cost of interest bearing liabilities	0.46	%	0.46	%	0.47	%	0.44	%	0.42	%	—		0.04
Net interest spread (1)	3.80	%	3.93	%	4.19	%	4.25	%	4.31	%	(0.13	)	(0.51	)
Net interest margin (1)	3.95	%	4.07	%	4.34	%	4.39	%	4.43	%	(0.12	)	(0.48	)
As reported (GAAP):
Return on average assets	1.01	%	0.91	%	0.82	%	1.08	%	0.99	%	0.10		0.02
Return on average tangible assets	1.09	%	0.99	%	0.89	%	1.17	%	1.08	%	0.10		0.01
Return on average common equity	6.28	%	5.61	%	4.93	%	6.49	%	5.97	%	0.67		0.31
Return on average tangible common equity	11.79	%	10.59	%	9.34	%	12.41	%	11.51	%	1.20		0.28
Efficiency ratio – Consolidated	62.11	%	66.15	%	69.48	%	64.02	%	65.00	%	(4.04	)	(2.89	)
Efficiency ratio – Bank	60.45	%	64.44	%	67.29	%	62.40	%	63.08	%	(3.99	)	(2.63	)
Operating basis (non-GAAP): (2)
Return on average assets	1.13	%	1.16	%	1.10	%	1.10	%	1.19	%	(0.03	)	(0.06	)
Return on average tangible assets	1.22	%	1.26	%	1.19	%	1.20	%	1.29	%	(0.04	)	(0.07	)
Return on average common equity	7.08	%	7.16	%	6.63	%	6.64	%	7.13	%	(0.08	)	(0.05	)
Return on average tangible common equity	13.28	%	13.51	%	12.57	%	12.70	%	13.74	%	(0.23	)	(0.46	)
Efficiency ratio – Consolidated	58.96	%	59.78	%	62.49	%	63.00	%	60.17	%	(0.82	)	(1.21	)
Efficiency ratio – Bank	57.66	%	58.48	%	60.89	%	61.72	%	58.84	%	(0.82	)	(1.18	)

(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 the after-tax impact of merger-related expenses, gains or losses on junior subordinated debentures carried at fair value, gains or losses from the change in fair value of the MSR, gains or losses from the change in fair value of the swap derivative, net gains or losses in investment securities, exit or disposal costs, bargain purchase gain on acquisitions and goodwill impairment.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 20

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
	Nine months ended				% Change
	Sep 30, 2016		Sep 30, 2015		Year over Year
Average Rates:
Yield on loans and leases	4.88	%	5.44	%	(0.56	)
Yield on loans held for sale	3.86	%	3.68	%	0.18
Yield on taxable investments	2.14	%	2.09	%	0.05
Yield on tax-exempt investments (1)	4.71	%	4.72	%	(0.01	)
Yield on interest bearing cash and temporary investments	0.51	%	0.25	%	0.26
Total yield on earning assets (1)	4.43	%	4.76	%	(0.33	)
Cost of interest bearing deposits	0.27	%	0.24	%	0.03
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.04	%	0.06	%	(0.02	)
Cost of term debt	1.72	%	1.51	%	0.21
Cost of junior subordinated debentures	4.29	%	3.88	%	0.41
Total cost of interest bearing liabilities	0.46	%	0.41	%	0.05
Net interest spread (1)	3.97	%	4.35	%	(0.38	)
Net interest margin (1)	4.12	%	4.47	%	(0.35	)
As reported (GAAP):
Return on average assets	0.91	%	0.93	%	(0.02	)
Return on average tangible assets	0.99	%	1.02	%	(0.03	)
Return on average common equity	5.61	%	5.59	%	0.02
Return on average tangible common equity	10.59	%	10.81	%	(0.22	)
Efficiency ratio – Consolidated	65.79	%	67.02	%	(1.23	)
Efficiency ratio – Bank	63.96	%	65.30	%	(1.34	)
Operating basis (non-GAAP): (2)
Return on average assets	1.13	%	1.17	%	(0.04	)
Return on average tangible assets	1.23	%	1.27	%	(0.04	)
Return on average common equity	6.95	%	7.00	%	(0.05	)
Return on average tangible common equity	13.12	%	13.54	%	(0.42	)
Efficiency ratio – Consolidated	60.38	%	60.48	%	(0.10	)
Efficiency ratio – Bank	58.98	%	59.12	%	(0.14	)

(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 the after-tax impact of merger-related expenses, gains or losses on junior subordinated debentures carried at fair value, gains or losses from the change in fair value of the MSR, gains or losses from the change in fair value of the swap derivative, net gains or losses in investment securities, exit or disposal costs, bargain purchase gain on acquisitions and goodwill impairment.

Umpqua Reports Third Quarter 2016 Results

October 19, 2016

Page 21

Umpqua Holdings Corporation Average Balances
(Unaudited)
	Quarter Ended										% Change
(Dollars in thousands)	Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Seq. Quarter		Year over Year
Temporary investments & interest bearing cash	$	874,410	$	514,881	$	356,674	$	608,250	$	693,114	70	%	26	%
Investment securities, taxable	2,265,883		2,304,998		2,311,589		2,293,429		2,276,698		(2	)%	0	%
Investment securities, tax-exempt	283,818		280,841		287,085		302,443		307,960		1	%	(8	)%
Loans held for sale	481,740		403,964		297,732		334,404		357,905		19	%	35	%
Loans and leases	17,400,657		17,234,220		17,008,084		16,514,770		16,155,395		1	%	8	%
Total interest earning assets	21,306,508		20,738,904		20,261,164		20,053,296		19,791,072		3	%	8	%
Goodwill & other intangible assets, net	1,827,405		1,829,407		1,832,046		1,835,821		1,838,740		0	%	(1	)%
Total assets	24,422,986		23,896,315		23,415,439		23,196,052		22,946,464		2	%	6	%
Non-interest bearing demand deposits	5,766,022		5,466,098		5,289,810		5,285,992		5,108,430		5	%	13	%
Interest bearing deposits	12,836,987		12,644,442		12,411,005		12,249,333		12,225,691		2	%	5	%
Total deposits	18,603,009		18,110,540		17,700,815		17,535,325		17,334,121		3	%	7	%
Interest bearing liabilities	14,446,687		14,249,349		13,976,678		13,812,645		13,798,350		1	%	5	%
Shareholders’ equity - common	3,911,323		3,889,593		3,878,540		3,847,587		3,822,201		1	%	2	%
Tangible common equity (1)	2,083,918		2,060,186		2,046,494		2,011,766		1,983,461		1	%	5	%

Umpqua Holdings Corporation Average Balances
(Unaudited)
	Nine months ended				% Change
(Dollars in thousands)	Sep 30, 2016		Sep 30, 2015		Year over Year
Temporary investments & interest bearing cash	$	583,056	$	957,210	(39	)%
Investment securities, taxable	2,294,054		2,269,474		1	%
Investment securities, tax-exempt	283,914		313,462		(9	)%
Loans held for sale	394,797		333,135		19	%
Loans and leases	17,215,000		15,743,801		9	%
Total interest earning assets	20,770,821		19,617,082		6	%
Goodwill & other intangible assets, net	1,829,611		1,840,874		(1	)%
Total assets	23,913,446		22,807,640		5	%
Non-interest bearing demand deposits	5,508,255		4,924,356		12	%
Interest bearing deposits	12,631,564		12,230,574		3	%
Total deposits	18,139,819		17,154,930		6	%
Interest bearing liabilities	14,225,049		13,840,189		3	%
Shareholders’ equity - common	3,893,218		3,811,380		2	%
Tangible common equity (1)	2,063,607		1,970,506		5	%

(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 Reports Third Quarter 2016 Results

October 19, 2016

Page 22

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(unaudited)
	Quarter Ended															% Change
(Dollars in thousands)	Sep 30, 2016			Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Seq. Quarter		Year over Year
Residential mortgage servicing rights:
Residential mortgage loans serviced for others	$	13,880,660		$	13,564,242		$	13,304,468		$	13,047,266		$	12,693,451		2	%	9	%
MSR asset, at fair value	114,446			112,095			117,172			131,817			124,814			2	%	(8	)%
MSR as % of serviced portfolio	0.82		%	0.83		%	0.88		%	1.01		%	0.98		%
Residential mortgage banking revenue:
Origination and sale	$	45,631		$	42,083		$	28,409		$	25,363		$	26,904		8	%	70	%
Servicing	9,401			8,640			7,642			7,546			7,240			9	%	30	%
Change in fair value of MSR asset	(7,826		)	(13,940		)	(20,625		)	(469		)	(10,103		)	(44	)%	(23	)%
Total	$	47,206		$	36,783		$	15,426		$	32,440		$	24,041		28	%	96	%
Closed loan volume:
Closed loan volume - portfolio	$	305,648		$	365,926		$	332,918		$	352,465		$	446,088		(16	)%	(31	)%
Closed loan volume - for-sale	1,118,526			1,046,349			764,076			794,820			843,720			7	%	33	%
Closed loan volume - total	$	1,424,174		$	1,412,275		$	1,096,994		$	1,147,285		$	1,289,808		1	%	10	%
Gain on sale margin:
Based on for-sale volume	4.08		%	4.02		%	3.72		%	3.19		%	3.19		%	0.06		0.89
	Nine months ended						% Change
	Sep 30, 2016			Sep 30, 2015			Year over Year
Residential mortgage banking revenue:
Origination and sale	$	116,123		$	92,069		26		%
Servicing	25,683			20,467			25		%
Change in fair value of MSR asset	(42,391		)	(20,254		)	109		%
Total	$	99,415		$	92,282		8		%
Closed loan volume:
Closed loan volume - portfolio	$	1,004,492		$	1,203,949		(17		)%
Closed loan volume - for-sale	2,928,951			2,703,100			8		%
Closed loan volume - total	$	3,933,443		$	3,907,049		1		%
Gain on sale margin:
Based on for-sale volume	3.96		%	3.41		%	0.55
nm = not meaningful

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