Junior Subordinated Debentures

Following is information about the Company's wholly-owned trusts ("Trusts") as of September 30, 2018:



(dollars in thousands)
Trust Name	Issue Date	Issued Amount		Carrying Value (1)		Rate (2)	Effective Rate (3)	Maturity Date
AT FAIR VALUE:
Umpqua Statutory Trust II	October 2002	$	20,619	$	17,808	Floating rate, LIBOR plus 3.35%, adjusted quarterly	6.59%	October 2032
Umpqua Statutory Trust III	October 2002	30,928		26,933		Floating rate, LIBOR plus 3.45%, adjusted quarterly	6.62%	November 2032
Umpqua Statutory Trust IV	December 2003	10,310		8,420		Floating rate, LIBOR plus 2.85%, adjusted quarterly	6.35%	January 2034
Umpqua Statutory Trust V	December 2003	10,310		8,297		Floating rate, LIBOR plus 2.85%, adjusted quarterly	6.44%	March 2034
Umpqua Master Trust I	August 2007	41,238		26,446		Floating rate, LIBOR plus 1.35%, adjusted quarterly	5.74%	September 2037
Umpqua Master Trust IB	September 2007	20,619		15,979		Floating rate, LIBOR plus 2.75%, adjusted quarterly	6.56%	December 2037
Sterling Capital Trust III	April 2003	14,433		12,355		Floating rate, LIBOR plus 3.25%, adjusted quarterly	6.53%	April 2033
Sterling Capital Trust IV	May 2003	10,310		8,671		Floating rate, LIBOR plus 3.15%, adjusted quarterly	6.50%	May 2033
Sterling Capital Statutory Trust V	May 2003	20,619		17,410		Floating rate, LIBOR plus 3.25%, adjusted quarterly	6.66%	June 2033
Sterling Capital Trust VI	June 2003	10,310		8,616		Floating rate, LIBOR plus 3.20%, adjusted quarterly	6.62%	September 2033
Sterling Capital Trust VII	June 2006	56,702		37,908		Floating rate, LIBOR plus 1.53%, adjusted quarterly	5.77%	June 2036
Sterling Capital Trust VIII	September 2006	51,547		34,739		Floating rate, LIBOR plus 1.63%, adjusted quarterly	5.88%	December 2036
Sterling Capital Trust IX	July 2007	46,392		30,354		Floating rate, LIBOR plus 1.40%, adjusted quarterly	5.71%	October 2037
Lynnwood Financial Statutory Trust I	March 2003	9,279		7,751		Floating rate, LIBOR plus 3.15%, adjusted quarterly	6.61%	March 2033
Lynnwood Financial Statutory Trust II	June 2005	10,310		7,236		Floating rate, LIBOR plus 1.80%, adjusted quarterly	5.89%	June 2035
Klamath First Capital Trust I	July 2001	15,464		13,923		Floating rate, LIBOR plus 3.75%, adjusted semiannually	6.98%	July 2031
		379,390		282,846
AT AMORTIZED COST:
Humboldt Bancorp Statutory Trust II	December 2001	10,310		11,016		Floating rate, LIBOR plus 3.60%, adjusted quarterly	5.07%	December 2031
Humboldt Bancorp Statutory Trust III	September 2003	27,836		29,726		Floating rate, LIBOR plus 2.95%, adjusted quarterly	4.51%	September 2033
CIB Capital Trust	November 2002	10,310		10,923		Floating rate, LIBOR plus 3.45%, adjusted quarterly	5.04%	November 2032
Western Sierra Statutory Trust I	July 2001	6,186		6,186		Floating rate, LIBOR plus 3.58%, adjusted quarterly	5.92%	July 2031
Western Sierra Statutory Trust II	December 2001	10,310		10,310		Floating rate, LIBOR plus 3.60%, adjusted quarterly	5.94%	December 2031
Western Sierra Statutory Trust III	September 2003	10,310		10,310		Floating rate, LIBOR plus 2.90%, adjusted quarterly	5.24%	September 2033
Western Sierra Statutory Trust IV	September 2003	10,310		10,310		Floating rate, LIBOR plus 2.90%, adjusted quarterly	5.24%	September 2033
		85,572		88,781
	Total	$	464,962	$	371,627


(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, 2018.

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 $14.0 million at September 30, 2018 and $14.3 million at December 31, 2017. As of September 30, 2018, all of the junior subordinated debentures were redeemable at par, at their applicable quarterly or semiannual interest payment dates.

In the first quarter of 2018, the Company paid $10.6 million to redeem the debt securities of the Humboldt Bancorp Statutory Trust I and HB Capital Trust I.

The Company has elected 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.

The fair value of the junior subordinated debentures increased for the three and nine months ended September 30, 2018, however, based on the application of ASU 2016-01, no loss was recorded in earnings. Instead the loss of $2.4 million and $5.6 million for the three and nine months ended, respectively, was recorded in other comprehensive income (loss), net of tax. The loss recorded in earnings resulting from the change in the fair value of these instruments was $1.6 million and $4.7 million for the three and nine months ended September 30, 2017, respectively.