Document


CEO Commentary
“Strong loan growth, exceptional credit quality, and net interest margin expansion again characterize Umpqua’s quarterly results,” said Cort O’Haver, President and CEO. “New loan generation reflects existing, conservative portfolio trends, and our efforts to thoughtfully execute loan and deposit pricing changes in the rising rate environment contributed to a 16% sequential-quarter increase in net interest income. Although the net increase in loans outpaced our deposit expansion, we are pleased with the more balanced growth levels compared to the prior quarter. Our teams remain focused on relationship banking with our customers and within our communities as we await the realization of items necessary to complete our proposed combination with Columbia Banking System.”
–Cort O’Haver, President and CEO of Umpqua Holdings Corporation


3Q22 HIGHLIGHTS (COMPARED TO 2Q22)

Net Interest Income and NIM			•Net interest income increased by $39 million or 16% on a quarter-to-quarter basis due to the favorable impact of rising interest rates and the higher mix of loans as a percentage of earning assets.
			•Net interest margin was 3.88%, up 47 basis points from the prior quarter. Total deposit costs were 14 basis points for the quarterly average and 22 basis points at September 30, 2022, compared to 6 basis points at June 30, 2022.

Non-Interest Income and Expense			•Non-interest income decreased by $26 million due primarily to the impact of rising interest rates on fair value accounting and hedges and lower residential mortgage gain-on-sale income.
			•Non-interest expense decreased by $1.6 million due to lower salaries and employee benefits expense and lower merger-related expenses, partially offset by a net increase in other miscellaneous expenses.

Credit Quality			•Net charge-offs remained low at 0.11% of average loans and leases (annualized).
			•Provision expense of $28 million compares to $19 million for the prior quarter. Net portfolio growth and economic forecast changes are the primary drivers of the increase.
			•Non-performing assets to total assets was 0.16%, up 1 basis point from June 30, 2022.

Capital			•Estimated total risk-based capital ratio of 13.2% and estimated tier 1 risk-based capital ratio of 10.7%.
			•Declared a quarterly cash dividend of $0.21 per common share on October 3, 2022, payable October 28, 2022, to holders of record as of October 14, 2022.

Notable items			•MSR hedge put in place in mid-August as additional actions taken to reduce mortgage segment volatility.
			•$0.8 million in merger-related expenses and $1.4 million in exit and disposal costs.


3Q22 KEY FINANCIAL DATA

PERFORMANCE METRICS	3Q22		2Q22		3Q21
Return on average assets	1.09%		1.04%		1.40%
Return on average tangible common equity1	13.02%		12.23%		15.88%
Operating return on average assets1	1.33%		1.06%		1.40%
Operating return on average tangible common equity1	15.90%		12.49%		15.88%
Net interest margin	3.88%		3.41%		3.21%
Efficiency ratio - consolidated	56.07%		59.12%		59.44%
Loan to deposit ratio	95.12%		93.50%		81.65%

INCOME STATEMENT ($ in 000s, excl. per share data)	3Q22		2Q22		3Q21
Net interest income	$287,604		$248,170		$235,074
Provision (recapture) for credit losses	$27,572		$18,692		($18,919)
Non-interest income	$29,445		$55,235		$73,705
Non-interest expense	$177,964		$179,574		$183,753
Pre-provision net revenue1	$139,085		$123,831		$125,026
Operating pre-provision net revenue1	$163,793		$125,994		$124,955
Earnings per common share - diluted	$0.39		$0.36		$0.49
Operating earnings per common share - diluted1	$0.47		$0.37		$0.49
Dividends paid per share	$0.21		$0.21		$0.21

BALANCE SHEET	3Q22		2Q22		3Q21
Total assets	$31.5	B	$30.1	B	$30.9	B
Loans and leases	$25.5	B	$24.4	B	$22.0	B
Total deposits	$26.8	B	$26.1	B	$26.9	B
Book value per common share	$11.14		$11.60		$12.57
Tangible book value per share1	$11.11		$11.57		$12.52
Tangible book value per share, ex AOCI1	$13.18		$12.99		$12.43

The Company's net interest margin was 3.88% for the third quarter of 2022, up 47 basis points from 3.41% for the second quarter of 2022. The increase is attributable to the higher mix of loans as a percentage of earning assets as well as an increase in individual category earning asset yields given upward interest rate movements. The cost of interest-bearing deposits increased twelve basis points to 0.23% for the third quarter of 2022 compared to the second quarter of 2022, and it was 0.38% on September 30, 2022 compared to 0.10% on June 30, 2022. Please refer to the Q3 2022 Earnings Presentation available on our website for additional net interest margin change details and interest rate sensitivity information.

The allowance for credit losses was $295 million, or 1.16% of loans and leases, as of September 30, 2022, compared to $274 million, or 1.12% of loans and leases, as of June 30, 2022. The provision for credit losses of $28 million for the third quarter of 2022 compares to a provision of $19 million for the second quarter of 2022. The current quarter's provision reflects allowance requirements for new loan generation; changes between the May 2022 and August 2022 economic forecasts used in credit models, which contributed to the quarter's net expense; and loan mix changes. Please refer to the Q3 2022 Earnings Presentation available on our website for additional details related to the allowance for credit losses.

As detailed in our segment and non-GAAP disclosures, non-interest income for the Core Banking segment includes a fair value loss of $25 million for the third quarter of 2022, driven by an increase in long-term interest rates and their effect on fair value adjustments related to investment securities, swap derivatives, and loans carried at fair value. This compares to a fair value loss of $10 million in the second quarter of 2022, and the $15 million adverse movement in fair value change between periods is primarily captured in other income. Please refer to the Q3 2022 Earnings presentation available on our website for additional details related to other non-interest income.

Revenue from the origination and sale of residential mortgages was $11 million for the third quarter of 2022, a decrease of $4.6 million from the prior quarter. This decline reflects a sequential-quarter decrease of $180 million or 31% in for-sale mortgage origination volume given the impact of rising long-term interest rates. Of the current quarter's mortgage production, 92% related to purchase activity, compared to 83% for the prior quarter and 61% for the same period of the prior year. While the mortgage banking gain-on-sale margin increased three basis points from the prior quarter to 2.65% for the third quarter of 2022, it continued to reflect the negative impact from rising rates on the pipeline.

In mid-August, we put hedges in place to reduce the volatility of MSR fair value impacts on a net basis. In the third quarter of 2022, we recorded a net write-up of the MSR asset of $11 million, which includes a $16 million fair value gain related to model inputs. We correspondingly recorded a $14 million MSR hedge loss during the quarter. Results for the month of September indicate the MSR hedges are working as planned to reduce net income volatility as the $11 million fair value gain related to model inputs was nearly offset by the MSR hedge loss of $10 million during the month. We continue to execute structural changes within our Mortgage Banking segment to manage expenses and efficiently deploy capital, and as part of the process, we reduced headcount during the third quarter.

As of September 30, 2022, the Company's tangible book value per common share2 decreased to $11.11, compared to $11.57 in the prior quarter and $12.52 in the same period of the prior year. Rising interest rates drove a decline in the fair value of available-for-sale investment securities and an increase in junior subordinated debt accounted for at fair value during the quarter. The impact of these items is reflected by a decline in accumulated other comprehensive (loss) income ("AOCI") to $(450) million, compared to $(308) million at the prior quarter-end and $20 million at September 30, 2021. Excluding AOCI, tangible book2 increased to $13.18 at September 30, 2022, compared to $12.99 and $12.43 for the linked-quarter and year-ago periods, respectively.

The Core Banking segment includes all lines of business, except Mortgage Banking, including commercial, retail, wealth management, as well as the operations, technology, and administrative functions of the Bank and Holding Company. The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from our serviced loan portfolio, the quarterly changes to the mortgage servicing rights (MSR) asset, and the specific expenses that are related to mortgage banking activities including variable commission expenses. Revenue and related expenses for residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for our consumer and wealth channels and are originated through a variety of channels throughout the Company.

Umpqua Holdings Corporation (NASDAQ: UMPQ), headquartered in Portland, Oregon, is the parent company of Umpqua Bank, an Oregon-based regional bank that operates in Oregon, Washington, California, Idaho, Nevada, Arizona, and Colorado. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company was named #1 in Customer Satisfaction for the Northwest Region in the J.D. Power 2021 U.S. Retail Banking Satisfaction StudySM, and Forbes consistently ranks Umpqua as one of America’s Best Banks. The Portland Business Journal has also recognized Umpqua as the Most Admired Financial Services Company in Oregon for seventeen consecutive years. In addition to its retail and commercial banking presence, Umpqua Bank owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses. For more information, visit umpquabank.com.

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives and the result of such activity. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, inflation and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; the ability to complete, or any delays in completing, the proposed transaction between us and Columbia Banking System, Inc.; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the proposed transaction that may impact our ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management’s attention from ongoing business operations and opportunities; and potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the transaction and integration of the companies. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company's Board of Directors, and may be subject to regulatory approval or conditions.


Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
	Quarter Ended										% Change
(In thousands, except per share data)	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	278,830	$	234,674	$	214,404	$	221,501	$	224,403	19	%	24	%
Interest and dividends on investments:
Taxable	18,175		17,256		18,725		16,566		16,102		5	%	13	%
Exempt from federal income tax	1,322		1,369		1,372		1,456		1,470		(3)	%	(10)	%
Dividends	86		84		86		102		213		2	%	(60)	%
Temporary investments and interest bearing deposits	5,115		2,919		1,353		1,229		1,237		75	%	314	%
Total interest income	303,528		256,302		235,940		240,854		243,425		18	%	25	%
Interest expense:
Deposits	9,090		4,015		3,916		4,357		5,100		126	%	78	%
Securities sold under agreement to repurchase and federal funds purchased	545		66		63		48		88		nm		nm
Borrowings	798		50		49		51		149		nm		436	%
Junior subordinated debentures	5,491		4,001		3,149		3,019		3,014		37	%	82	%
Total interest expense	15,924		8,132		7,177		7,475		8,351		96	%	91	%
Net interest income	287,604		248,170		228,763		233,379		235,074		16	%	22	%
Provision (recapture) for credit losses	27,572		18,692		4,804		(736)		(18,919)		48	%	(246)	%
Non-interest income:
Service charges on deposits	12,632		12,011		11,583		11,188		10,941		5	%	15	%
Card-based fees	9,115		10,530		8,708		9,355		9,111		(13)	%	0	%
Brokerage revenue	27		27		11		31		31		0	%	(13)	%
Residential mortgage banking revenue, net	17,341		30,544		60,786		43,185		34,150		(43)	%	(49)	%
Gain on sale of debt securities, net	—		—		2		4		—		nm		nm
Loss on equity securities, net	(2,647)		(2,075)		(2,661)		(466)		(343)		28	%	672	%
Gain on loan and lease sales, net	1,525		1,303		2,337		4,816		4,208		17	%	(64)	%
BOLI income	2,023		2,110		2,087		2,101		2,038		(4)	%	(1)	%
Other (loss) income	(10,571)		785		(2,884)		12,524		13,569		nm		(178)	%
Total non-interest income	29,445		55,235		79,969		82,738		73,705		(47)	%	(60)	%
Non-interest expense:
Salaries and employee benefits	109,164		110,942		113,138		117,477		117,636		(2)	%	(7)	%
Occupancy and equipment, net	35,042		34,559		34,829		34,310		33,944		1	%	3	%
Intangible amortization	1,025		1,026		1,025		1,130		1,130		0	%	(9)	%
FDIC assessments	3,007		2,954		4,516		2,896		2,136		2	%	41	%
Merger related expenses	769		2,672		2,278		15,183		—		(71)	%	nm

Other expenses	28,957		27,421		26,644		28,715		28,907		6	%	0	%
Total non-interest expense	177,964		179,574		182,430		199,711		183,753		(1)	%	(3)	%
Income before provision for income taxes	111,513		105,139		121,498		117,142		143,945		6	%	(23)	%
Provision for income taxes	27,473		26,548		30,341		28,788		35,879		3	%	(23)	%
Net income	$	84,040	$	78,591	$	91,157	$	88,354	$	108,066	7	%	(22)	%

Weighted average basic shares outstanding	217,051		217,030		216,782		216,624		218,416		0	%	(1)	%
Weighted average diluted shares outstanding	217,386		217,279		217,392		217,356		218,978		0	%	(1)	%
Earnings per common share – basic	$	0.39	$	0.36	$	0.42	$	0.41	$	0.49	8	%	(20)	%
Earnings per common share – diluted	$	0.39	$	0.36	$	0.42	$	0.41	$	0.49	8	%	(20)	%

nm = not meaningful


Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
	Nine Months Ended				% Change
(In thousands, except per share data)	Sep 30, 2022		Sep 30, 2021		Year over Year
Interest income:
Loans and leases	$	727,908	$	669,014	9	%
Interest and dividends on investments:
Taxable	54,156		43,833		24	%
Exempt from federal income tax	4,063		4,491		(10)	%
Dividends	256		1,216		(79)	%
Temporary investments and interest bearing deposits	9,387		2,635		256	%
Total interest income	795,770		721,189		10	%
Interest expense:
Deposits	17,021		22,794		(25)	%
Securities sold under agreement to repurchase and federal funds purchased	674		232		191	%
Borrowings	897		2,787		(68)	%
Junior subordinated debentures	12,641		9,108		39	%
Total interest expense	31,233		34,921		(11)	%
Net interest income	764,537		686,268		11	%
Provision (recapture) for credit losses	51,068		(41,915)		(222)	%
Non-interest income:
Service charges on deposits	36,226		30,898		17	%
Card-based fees	28,353		26,759		6	%
Brokerage revenue	65		5,081		(99)	%
Residential mortgage banking revenue, net	108,671		143,626		(24)	%
Gain on sale of debt securities, net	2		4		(50)	%
Loss on equity securities, net	(7,383)		(1,045)		nm
Gain on loan and lease sales, net	5,165		10,899		(53)	%
BOLI income	6,220		6,201		0	%
Other (loss) income	(12,670)		51,157		(125)	%
Total non-interest income	164,649		273,580		(40)	%
Non-interest expense:
Salaries and employee benefits	333,244		363,343		(8)	%
Occupancy and equipment, net	104,430		103,236		1	%
Intangible amortization	3,076		3,390		(9)	%
FDIC assessments	10,477		6,342		65	%
Merger related expenses	5,719		—		nm
Other expenses	83,022		84,434		(2)	%
Total non-interest expense	539,968		560,745		(4)	%
Income before provision for income taxes	338,150		441,018		(23)	%
Provision for income taxes	84,362		109,072		(23)	%
Net income	$	253,788	$	331,946	(24)	%

Weighted average basic shares outstanding	216,955		219,791		(1)	%
Weighted average diluted shares outstanding	217,353		220,278		(1)	%
Earnings per common share – basic	$	1.17	$	1.51	(23)	%
Earnings per common share – diluted	$	1.17	$	1.51	(23)	%

nm = not meaningful


Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)
																% Change
(In thousands, except per share data)	Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	321,447		$	315,348		$	307,144		$	222,015		$	395,555		2	%	(19)	%
Interest bearing cash and temporary investments	1,232,412			687,233			2,358,292			2,539,606			3,349,034			79	%	(63)	%
Investment securities:
Equity and other, at fair value	72,277			75,347			78,966			81,214			81,575			(4)	%	(11)	%
Available for sale, at fair value	3,136,391			3,416,707			3,638,080			3,870,435			3,723,171			(8)	%	(16)	%
Held to maturity, at amortized cost	2,547			2,637			2,700			2,744			2,795			(3)	%	(9)	%
Loans held for sale	148,275			228,889			309,946			353,105			352,466			(35)	%	(58)	%
Loans and leases	25,507,951			24,432,678			22,975,761			22,553,180			21,969,940			4	%	16	%
Allowance for credit losses on loans and leases	(283,065)			(261,111)			(248,564)			(248,412)			(257,560)			8	%	10	%
Net loans and leases	25,224,886			24,171,567			22,727,197			22,304,768			21,712,380			4	%	16	%
Restricted equity securities	40,993			10,867			10,889			10,916			10,946			277	%	275	%
Premises and equipment, net	165,305			165,196			167,369			171,125			172,624			0	%	(4)	%
Operating lease right-of-use assets	81,729			87,249			87,333			82,366			88,379			(6)	%	(8)	%

Other intangible assets, net	5,764			6,789			7,815			8,840			9,970			(15)	%	(42)	%
Residential mortgage servicing rights, at fair value	196,177			179,558			165,807			123,615			105,834			9	%	85	%
Bank owned life insurance	329,699			328,764			328,040			327,745			325,646			0	%	1	%
Deferred tax asset, net	128,120			70,134			39,051			—			8,402			83	%	nm
Other assets	385,938			389,409			408,497			542,442			552,702			(1)	%	(30)	%
Total assets	$	31,471,960		$	30,135,694		$	30,637,126		$	30,640,936		$	30,891,479		4	%	2	%
Liabilities:
Deposits	$	26,817,107		$	26,132,423		$	26,699,587		$	26,594,685		$	26,908,397		3	%	0	%
Securities sold under agreements to repurchase	383,569			527,961			499,539			492,247			467,760			(27)	%	(18)	%
Borrowings	756,214			6,252			6,290			6,329			6,367			nm		nm
Junior subordinated debentures, at fair value	325,744			321,268			305,719			293,081			299,508			1	%	9	%
Junior subordinated debentures, at amortized cost	87,870			87,927			87,984			88,041			88,098			0	%	0	%
Operating lease liabilities	95,512			101,352			101,732			95,427			100,557			(6)	%	(5)	%
Deferred tax liability, net	—			—			—			4,353			—			nm		nm
Other liabilities	588,430			440,235			328,677			317,503			298,413			34	%	97	%
Total liabilities	29,054,446			27,617,418			28,029,528			27,891,666			28,169,100			5	%	3	%
Shareholders' equity:
Common stock	3,448,007			3,445,531			3,443,266			3,444,849			3,442,085			0	%	0	%
Accumulated deficit	(580,933)			(619,108)			(651,912)			(697,338)			(739,915)			(6)	%	(21)	%
Accumulated other comprehensive (loss) income	(449,560)			(308,147)			(183,756)			1,759			20,209			46	%	nm
Total shareholders' equity	2,417,514			2,518,276			2,607,598			2,749,270			2,722,379			(4)	%	(11)	%
Total liabilities and shareholders' equity	$	31,471,960		$	30,135,694		$	30,637,126		$	30,640,936		$	30,891,479		4	%	2	%

Common shares outstanding at period end	217,053			217,049			216,967			216,626			216,622			0	%	0	%
Book value per common share	$	11.14		$	11.60		$	12.02		$	12.69		$	12.57		(4)	%	(11)	%
Tangible book value per common share (1)	$	11.11		$	11.57		$	11.98		$	12.65		$	12.52		(4)	%	(11)	%
Tangible equity - common (1)	$	2,411,750		$	2,511,487		$	2,599,783		$	2,740,430		$	2,712,409		(4)	%	(11)	%
Tangible common equity to tangible assets (1)	7.66		%	8.34		%	8.49		%	8.95		%	8.78		%	(0.68)		(1.12)
nm = not meaningful


Umpqua Holdings Corporation
Financial Highlights
(Unaudited)
	Quarter Ended															% Change
	Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Per Common Share Data:
Dividends	$	0.21		$	0.21		$	0.21		$	0.21		$	0.21		0	%	0	%
Book value	$	11.14		$	11.60		$	12.02		$	12.69		$	12.57		(4)	%	(11)	%
Tangible book value (1)	$	11.11		$	11.57		$	11.98		$	12.65		$	12.52		(4)	%	(11)	%
Tangible book value, ex accumulated other comprehensive income (1)	$	13.18		$	12.99		$	12.83		$	12.64		$	12.43		1	%	6	%

Performance Ratios:
Efficiency ratio	56.07		%	59.12		%	59.02		%	63.10		%	59.44		%	(3.05)		(3.37)
Pre-provision net revenue (PPNR) ROAA (1)	1.80		%	1.64		%	1.67		%	1.50		%	1.62		%	0.16		0.18
Return on average assets (ROAA)	1.09		%	1.04		%	1.21		%	1.13		%	1.40		%	0.05		(0.31)
Return on average common equity	12.99		%	12.20		%	13.62		%	12.90		%	15.82		%	0.79		(2.83)
Return on average tangible common equity (1)	13.02		%	12.23		%	13.66		%	12.94		%	15.88		%	0.79		(2.86)

Performance Ratios - Operating: (1)
Operating efficiency ratio (1)	51.72		%	58.27		%	62.02		%	59.61		%	58.94		%	(6.55)		(7.22)
Operating PPNR return on average assets (1)	2.12		%	1.66		%	1.43		%	1.58		%	1.62		%	0.46		0.50
Operating return on average assets (1)	1.33		%	1.06		%	1.03		%	1.23		%	1.40		%	0.27		(0.07)
Operating return on average common equity (1)	15.86		%	12.46		%	11.58		%	13.98		%	15.82		%	3.40		0.04
Operating return on average tangible common equity (1)	15.90		%	12.49		%	11.62		%	14.03		%	15.88		%	3.41		0.02

Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases	4.41		%	3.94		%	3.79		%	3.94		%	4.02		%	0.47		0.39
Yield on earning assets (2)	4.10		%	3.53		%	3.24		%	3.25		%	3.32		%	0.57		0.78
Cost of interest bearing deposits	0.23		%	0.11		%	0.10		%	0.11		%	0.13		%	0.12		0.10
Cost of interest bearing liabilities	0.39		%	0.20		%	0.18		%	0.18		%	0.20		%	0.19		0.19
Cost of total deposits	0.14		%	0.06		%	0.06		%	0.06		%	0.08		%	0.08		0.06
Cost of total funding (3)	0.23		%	0.12		%	0.11		%	0.11		%	0.12		%	0.11		0.11
Net interest margin (2)	3.88		%	3.41		%	3.14		%	3.15		%	3.21		%	0.47		0.67

Average interest bearing cash / Average interest earning assets	3.04		%	5.71		%	8.92		%	10.78		%	11.03		%	(2.67)		(7.99)
Average loans and leases / Average interest earning assets	84.54		%	80.91		%	76.85		%	74.70		%	74.78		%	3.63		9.76
Average loans and leases / Average total deposits	93.55		%	89.23		%	84.77		%	82.12		%	82.07		%	4.32		11.48
Average non-interest bearing deposits / Average total deposits	42.29		%	42.00		%	41.35		%	41.69		%	41.14		%	0.29		1.15
Average total deposits / Average total funding (3)	96.34		%	96.66		%	96.82		%	96.84		%	96.72		%	(0.32)		(0.38)

Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases	0.20		%	0.18		%	0.18		%	0.23		%	0.24		%	0.02		(0.04)
Non-performing assets to total assets	0.16		%	0.15		%	0.14		%	0.17		%	0.17		%	0.01		(0.01)
Allowance for credit losses to loans and leases	1.16		%	1.12		%	1.14		%	1.16		%	1.23		%	0.04		(0.07)
Total risk-based capital ratio (4)	13.2		%	13.5		%	14.0		%	14.3		%	14.9		%	(0.30)		(1.70)
Common equity tier 1 risk-based capital ratio (4)	10.7		%	11.0		%	11.4		%	11.6		%	12.0		%	(0.30)		(1.30)


Umpqua Holding Corporation
Financial Highlights
(Unaudited)
	Nine Months Ended						% Change
	Sep 30, 2022			Sep 30, 2021			Year over Year
Per Common Share Data:
Dividends	$	0.63		$	0.63		—	%

Performance Ratios:
Efficiency ratio	58.05		%	58.35		%	(0.30)
Pre-provision net revenue (PPNR) ROAA (1)	1.70		%	1.78		%	(0.08)
Return on average assets (ROAA)	1.11		%	1.48		%	(0.37)
Return on average common equity	12.94		%	16.47		%	(3.53)
Return on average tangible common equity (1)	12.98		%	16.55		%	(3.57)

Performance Ratios - Operating: (1)
Operating efficiency ratio (1)	57.03		%	57.88		%	(0.85)
Operating PPNR return on average assets (1)	1.74		%	1.78		%	(0.04)
Operating return on average assets (1)	1.14		%	1.48		%	(0.34)
Operating return on average common equity (1)	13.28		%	16.49		%	(3.21)
Operating return on average tangible common equity (1)	13.32		%	16.57		%	(3.25)

Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases	4.06		%	4.01		%	0.05
Yield on earning assets (2)	3.62		%	3.36		%	0.26
Cost of interest bearing deposits	0.15		%	0.20		%	(0.05)
Cost of interest bearing liabilities	0.26		%	0.28		%	(0.02)
Cost of total deposits	0.09		%	0.12		%	(0.03)
Cost of total funding (3)	0.15		%	0.17		%	(0.02)
Net interest margin (2)	3.48		%	3.20		%	0.28

Average interest bearing cash / Average interest earning assets	5.87		%	9.93		%	(4.06)
Average loans and leases / Average interest earning assets	80.80		%	76.16		%	4.64
Average loans and leases / Average total deposits	89.21		%	84.34		%	4.87
Average non-interest bearing deposits / Average total deposits	41.89		%	40.44		%	1.45
Average total deposits / Average total funding (3)	96.61		%	96.04		%	0.57


Umpqua Holdings Corporation
Loan & Lease Portfolio Balances and Mix
(Unaudited)
	Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			% Change
(Dollars in thousands)	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net	$	3,846,426		$	3,798,242		$	3,884,784		$	3,786,887		$	3,561,764		1	%	8	%
Owner occupied term, net	2,549,761			2,497,553			2,327,899			2,332,422			2,330,338			2	%	9	%
Multifamily, net	5,090,661			4,768,273			4,323,633			4,051,202			3,813,024			7	%	34	%
Construction & development, net	1,036,931			1,017,297			940,286			890,338			882,778			2	%	17	%
Residential development, net	205,935			194,909			195,308			206,990			177,148			6	%	16	%
Commercial:
Term, net (1)	3,003,424			2,904,861			2,772,206			3,008,473			3,159,466			3	%	(5)	%
Lines of credit & other, net	914,507			920,604			871,483			910,733			930,350			(1)	%	(2)	%
Leases & equipment finance, net	1,669,817			1,576,144			1,484,252			1,467,676			1,457,248			6	%	15	%
Residential:
Mortgage, net	5,470,624			5,168,457			4,748,266			4,517,266			4,330,860			6	%	26	%
Home equity loans & lines, net	1,565,094			1,415,722			1,250,702			1,197,170			1,133,823			11	%	38	%
Consumer & other, net	154,771			170,616			176,942			184,023			193,141			(9)	%	(20)	%
Total loans and leases, net of deferred fees and costs	$	25,507,951		$	24,432,678		$	22,975,761		$	22,553,180		$	21,969,940		4	%	16	%

(1)The Bank participated in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include the following net PPP loan balances:
Net PPP loan balance	$	37,949		$	101,554		$	172,790		$	380,440		$	726,737		(63)	%	(95)	%

Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net	15		%	15		%	17		%	17		%	16		%
Owner occupied term, net	10		%	10		%	10		%	10		%	11		%
Multifamily, net	20		%	20		%	19		%	18		%	17		%
Construction & development, net	4		%	4		%	4		%	4		%	4		%
Residential development, net	1		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	12		%	12		%	12		%	13		%	14		%
Lines of credit & other, net	4		%	4		%	4		%	4		%	4		%
Leases & equipment finance, net	6		%	6		%	6		%	7		%	7		%
Residential:
Mortgage, net	21		%	21		%	21		%	20		%	20		%
Home equity loans & lines, net	6		%	6		%	5		%	5		%	5		%
Consumer & other, net	1		%	1		%	1		%	1		%	1		%
Total	100		%	100		%	100		%	100		%	100		%


Umpqua Holdings Corporation
Deposit Balances, Mix, and Select Account Details
(Unaudited)
	Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			% Change
(Dollars in thousands)	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	11,246,358		$	11,129,209		$	11,058,251		$	11,023,724		$	11,121,127		1	%	1	%
Demand, interest bearing	3,903,746			3,723,650			3,955,329			3,774,937			3,758,019			5	%	4	%
Money market	7,601,506			7,284,641			7,572,581			7,611,718			7,780,442			4	%	(2)	%
Savings	2,455,917			2,446,876			2,429,073			2,375,723			2,325,929			0	%	6	%
Time	1,609,580			1,548,047			1,684,353			1,808,583			1,922,880			4	%	(16)	%
Total	$	26,817,107		$	26,132,423		$	26,699,587		$	26,594,685		$	26,908,397		3	%	0	%

Total core deposits (1)	$	26,292,548		$	25,619,500		$	26,140,993		$	25,964,358		$	26,029,814		3	%	1	%

Deposit mix:
Demand, non-interest bearing	42		%	43		%	42		%	41		%	41		%
Demand, interest bearing	15		%	14		%	15		%	14		%	14		%
Money market	28		%	28		%	28		%	29		%	29		%
Savings	9		%	9		%	9		%	9		%	9		%
Time	6		%	6		%	6		%	7		%	7		%
Total	100		%	100		%	100		%	100		%	100		%

Number of open accounts:
Demand, non-interest bearing	434,347			434,436			428,915			428,181			425,337
Demand, interest bearing	56,698			57,145			63,800			66,010			70,749
Money market	55,712			56,430			56,783			57,222			57,794
Savings	159,008			159,709			160,267			160,449			161,698
Time	32,202			32,103			34,127			35,665			37,172
Total	737,967			739,823			743,892			747,527			752,750

Average balance per account:
Demand, non-interest bearing	$	25.9		$	25.6		$	25.8		$	25.7		$	26.1
Demand, interest bearing	68.9			65.2			62.0			57.2			53.1
Money market	136.4			129.1			133.4			133.0			134.6
Savings	15.4			15.3			15.2			14.8			14.4
Time	50.0			48.2			49.4			50.7			51.7
Total	$	36.3		$	35.3		$	35.9		$	35.6		$	35.7


	Umpqua Holdings Corporation
	Credit Quality – Non-performing Assets
	(Unaudited)
		Quarter Ended															% Change
(Dollars in thousands)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status:
	Commercial real estate, net	$	5,403		$	5,514		$	5,950		$	5,767		$	5,952		(2)	%	(9)	%
	Commercial, net	18,652			12,645			12,415			13,098			18,200			48	%	2	%
	Residential, net	—			—			—			—			—			nm		nm
	Consumer & other, net	—			—			—			—			—			nm		nm
	Total loans and leases on non-accrual status	24,055			18,159			18,365			18,865			24,152			32	%	0	%
Loans and leases past due 90+ days and accruing (1):
	Commercial real estate, net	1			23			1			1			1			(96)	%	0	%
	Commercial, net	5,143			3,311			8			4,160			2,454			55	%	110	%
	Residential, net (1)	21,411			22,340			23,162			27,981			24,919			(4)	%	(14)	%
	Consumer & other, net	152			196			111			194			116			(22)	%	31	%
	Total loans and leases past due 90+ days and accruing (1)	26,707			25,870			23,282			32,336			27,490			3	%	(3)	%
Total non-performing loans and leases		50,762			44,029			41,647			51,201			51,642			15	%	(2)	%
Other real estate owned		—			1,868			1,868			1,868			1,868			(100)	%	(100)	%
Total non-performing assets		$	50,762		$	45,897		$	43,515		$	53,069		$	53,510		11	%	(5)	%

Performing restructured loans and leases		$	7,076		$	7,631		$	8,405		$	6,694		$	9,849		(7)	%	(28)	%
Loans and leases past due 31-89 days		$	53,538		$	34,659		$	42,409		$	31,680		$	41,326		54	%	30	%
Loans and leases past due 31-89 days to total loans and leases		0.21		%	0.14		%	0.18		%	0.14		%	0.19		%	0.07		0.02
Non-performing loans and leases to total loans and leases (1)		0.20		%	0.18		%	0.18		%	0.23		%	0.24		%	0.02		(0.04)
Non-performing assets to total assets (1)		0.16		%	0.15		%	0.14		%	0.17		%	0.17		%	0.01		(0.01)
nm = not meaningful


	Umpqua Holdings Corporation
	Credit Quality – Allowance for Credit Losses
	(Unaudited)
		Quarter Ended															% Change
(Dollars in thousands)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	261,111		$	248,564		$	248,412		$	257,560		$	279,887		5	%	(7)	%
Provision (recapture) for credit losses on loans and leases		28,542			18,787			5,696			(1,751)			(16,132)			52	%	(277)	%
Charge-offs
	Commercial real estate, net	—			(8)			—			(58)			(916)			(100)	%	(100)	%
	Commercial, net	(9,459)			(9,035)			(7,858)			(10,197)			(8,521)			5	%	11	%
	Residential, net	(4)			—			(167)			—			—			nm		nm
	Consumer & other, net	(929)			(836)			(885)			(675)			(936)			11	%	(1)	%
	Total charge-offs	(10,392)			(9,879)			(8,910)			(10,930)			(10,373)			5	%	0	%
Recoveries
	Commercial real estate, net	123			73			25			56			120			68	%	2	%
	Commercial, net	2,842			2,934			2,545			2,585			3,346			(3)	%	(15)	%
	Residential, net	249			216			173			326			281			15	%	(11)	%
	Consumer & other, net	590			416			623			566			431			42	%	37	%
	Total recoveries	3,804			3,639			3,366			3,533			4,178			5	%	(9)	%
Net (charge-offs) recoveries
	Commercial real estate, net	123			65			25			(2)			(796)			89	%	(115)	%
	Commercial, net	(6,617)			(6,101)			(5,313)			(7,612)			(5,175)			8	%	28	%
	Residential, net	245			216			6			326			281			13	%	(13)	%
	Consumer & other, net	(339)			(420)			(262)			(109)			(505)			(19)	%	(33)	%
	Total net charge-offs	(6,588)			(6,240)			(5,544)			(7,397)			(6,195)			6	%	6	%
Balance, end of period		$	283,065		$	261,111		$	248,564		$	248,412		$	257,560		8	%	10	%
Reserve for unfunded commitments
Balance, beginning of period		$	12,823		$	12,918		$	12,767		$	11,752		$	14,539		(1)	%	(12)	%
(Recapture) provision for credit losses on unfunded commitments		(970)			(95)			151			1,015			(2,787)			921	%	(65)	%
Balance, end of period		11,853			12,823			12,918			12,767			11,752			(8)	%	1	%
Total Allowance for credit losses (ACL)		$	294,918		$	273,934		$	261,482		$	261,179		$	269,312		8	%	10	%

Net charge-offs to average loans and leases (annualized)		0.11		%	0.11		%	0.10		%	0.13		%	0.11		%	—		—
Recoveries to gross charge-offs		36.61		%	36.84		%	37.78		%	32.32		%	40.28		%	(0.23)		(3.67)
ACLLL to loans and leases		1.11		%	1.07		%	1.08		%	1.10		%	1.17		%	0.04		(0.06)
ACL to loans and leases		1.16		%	1.12		%	1.14		%	1.16		%	1.23		%	0.04		(0.07)
nm = not meaningful


Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Nine Months Ended						% Change
(Dollars in thousands)		Sep 30, 2022			Sep 30, 2021			Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	248,412		$	328,401		(24)	%


Provision (recapture) for credit losses on loans and leases		53,025			(33,381)			(259)	%
Charge-offs
	Commercial real estate, net	(8)			(1,086)			(99)	%
	Commercial, net	(26,352)			(44,228)			(40)	%
	Residential, net	(171)			(70)			144	%
	Consumer & other, net	(2,650)			(2,983)			(11)	%
	Total charge-offs	(29,181)			(48,367)			(40)	%
Recoveries
	Commercial real estate, net	221			589			(62)	%
	Commercial, net	8,321			8,118			3	%
	Residential, net	638			598			7	%
	Consumer & other, net	1,629			1,602			2	%
	Total recoveries	10,809			10,907			(1)	%
Net (charge-offs) recoveries
	Commercial real estate, net	213			(497)			(143)	%
	Commercial, net	(18,031)			(36,110)			(50)	%
	Residential, net	467			528			(12)	%
	Consumer & other, net	(1,021)			(1,381)			(26)	%
	Total net charge-offs	(18,372)			(37,460)			(51)	%
Balance, end of period		$	283,065		$	257,560		10	%
Reserve for unfunded commitments
Balance, beginning of period		$	12,767		$	20,286		(37)	%
(Recapture) provision for credit losses on unfunded commitments		(914)			(8,534)			(89)	%
Balance, end of period		11,853			11,752			1	%
Total Allowance for credit losses (ACL)		$	294,918		$	269,312		10	%

Net charge-offs to average loans and leases (annualized)		0.10		%	0.23		%	(0.13)
Recoveries to gross charge-offs		37.04		%	22.55		%	14.49


nm = not meaningful


Umpqua Holdings Corporation Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
	Quarter Ended
	September 30, 2022						June 30, 2022						September 30, 2021
(Dollars in thousands)	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	173,397	$	2,205	5.09	%	$	264,320	$	2,742	4.15	%	$	465,805	$	3,672	3.15	%
Loans and leases (1)	24,886,203		276,625		4.41	%	23,550,796		231,932		3.94	%	21,864,387		220,731		4.02	%
Taxable securities	3,271,185		18,261		2.23	%	3,410,091		17,340		2.03	%	3,436,895		16,315		1.90	%
Non-taxable securities (2)	212,847		1,651		3.10	%	220,327		1,721		3.13	%	245,904		1,848		3.01	%
Temporary investments and interest-bearing cash	893,471		5,115		2.27	%	1,663,454		2,919		0.70	%	3,224,846		1,237		0.15	%
Total interest-earning assets	29,437,103		$	303,857	4.10	%	29,108,988		$	256,654	3.53	%	29,237,837		$	243,803	3.32	%
Other assets	1,231,074						1,247,915						1,376,537
Total assets	$	30,668,177					$	30,356,903					$	30,614,374
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,829,688	$	1,705	0.18	%	$	3,896,553	$	610	0.06	%	$	3,564,040	$	468	0.05	%
Money market deposits	7,550,791		5,817		0.31	%	7,366,987		1,717		0.09	%	7,800,144		1,492		0.08	%
Savings deposits	2,468,187		250		0.04	%	2,426,124		199		0.03	%	2,284,077		206		0.04	%
Time deposits	1,501,724		1,318		0.35	%	1,618,394		1,489		0.37	%	2,031,494		2,934		0.57	%
Total interest-bearing deposits	15,350,390		9,090		0.23	%	15,308,058		4,015		0.11	%	15,679,755		5,100		0.13	%
Repurchase agreements and federal funds purchased	509,559		545		0.42	%	512,641		66		0.05	%	496,822		88		0.07	%
Borrowings	90,475		798		3.50	%	6,273		50		3.21	%	31,500		149		1.88	%
Junior subordinated debentures	409,151		5,491		5.33	%	393,964		4,001		4.07	%	375,726		3,014		3.18	%
Total interest-bearing liabilities	16,359,575		$	15,924	0.39	%	16,220,936		$	8,132	0.20	%	16,583,803		$	8,351	0.20	%
Non-interest-bearing deposits	11,250,764						11,086,376						10,960,686
Other liabilities	490,572						464,755						360,244
Total liabilities	28,100,911						27,772,067						27,904,733
Common equity	2,567,266						2,584,836						2,709,641
Total liabilities and shareholders' equity	$	30,668,177					$	30,356,903					$	30,614,374
NET INTEREST INCOME			$	287,933					$	248,522					$	235,452
NET INTEREST SPREAD					3.71	%					3.33	%					3.12	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.88	%					3.41	%					3.21	%


Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
(dollars in thousands)	Nine Months Ended
	September 30, 2022						September 30, 2021
	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	240,928	$	7,209	3.99	%	$	545,237	$	12,242	2.99	%
Loans and leases (1)	23,676,201		720,699		4.06	%	21,866,569		656,772		4.01	%
Taxable securities	3,445,386		54,412		2.11	%	3,199,653		45,049		1.88	%
Non-taxable securities (2)	222,375		5,098		3.06	%	248,617		5,627		3.02	%
Temporary investments and interest-bearing cash	1,718,832		9,387		0.73	%	2,850,639		2,635		0.12	%
Total interest-earning assets	29,303,722		$	796,805	3.62	%	28,710,715		$	722,325	3.36	%
Other assets	1,237,305						1,348,054
Total assets	$	30,541,027					$	30,058,769
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,846,202	$	2,813	0.10	%	$	3,359,865	$	1,341	0.05	%
Money market deposits	7,519,200		8,942		0.16	%	7,593,320		4,516		0.08	%
Savings deposits	2,433,651		654		0.04	%	2,152,667		523		0.03	%
Time deposits	1,623,742		4,612		0.38	%	2,336,261		16,414		0.94	%
Total interest-bearing deposits	15,422,795		17,021		0.15	%	15,442,113		22,794		0.20	%
Repurchase agreements and federal funds purchased	502,998		674		0.18	%	444,919		232		0.07	%
Borrowings	34,662		897		3.46	%	259,890		2,787		1.43	%
Junior subordinated debentures	394,803		12,641		4.28	%	363,122		9,108		3.35	%
Total interest-bearing liabilities	16,355,258		$	31,233	0.26	%	16,510,044		$	34,921	0.28	%
Non-interest-bearing deposits	11,115,618						10,484,104
Other liabilities	448,426						369,653
Total liabilities	27,919,302						27,363,801
Common equity	2,621,725						2,694,968
Total liabilities and shareholders' equity	$	30,541,027					$	30,058,769
NET INTEREST INCOME			$	765,572					$	687,404
NET INTEREST SPREAD					3.36	%					3.08	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.48	%					3.20	%


Umpqua Holdings Corporation Segments
(Unaudited)
Core Banking		Quarter Ended															% Change
(Dollars in thousands)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Net interest income		$	286,532		$	247,009		$	227,087		$	231,250		$	232,348		16	%	23	%
Provision (recapture) for credit losses		27,572			18,692			4,804			(736)			(18,919)			48	%	(246)	%
Non-interest income






	Gain on sale of debt securities, net	—			—			2			4			—			nm		nm
	Loss on equity securities, net	(2,647)			(2,075)			(2,661)			(466)			(343)			28	%	672	%
	Gain (loss) on swap derivatives, net	4,194			7,337			7,047			(303)			1,429			(43)	%	193	%
	Change in fair value of certain loans held for investment	(26,397)			(15,210)			(21,049)			(2,672)			3,432			74	%	(869)	%
	Non-interest income (excluding above items)	36,769			34,461			35,650			42,812			34,849			7	%	6	%
	Total non-interest income	11,919			24,513			18,989			39,375			39,367			(51)	%	(70)	%
Non-interest expense
	Merger related expenses	769			2,672			2,278			15,183			—			(71)	%	nm
	Exit and disposal costs	1,364			442			3,033			3,022			3,813			209	%	(64)	%
	Non-interest expense (excluding above items)	154,320			148,946			148,423			150,587			146,931			4	%	5	%
	Allocated expenses, net (1)	(39)			3,702			3,735			4,314			3,680			(101)	%	(101)	%
	Total non-interest expense	156,414			155,762			157,469			173,106			154,424			0	%	1	%
Income before income taxes		114,465			97,068			83,803			98,255			136,210			18	%	(16)	%
Provision for income taxes		28,212			24,530			20,917			24,067			33,945			15	%	(17)	%
Net income		$	86,253		$	72,538		$	62,886		$	74,188		$	102,265		19	%	(16)	%

Effective Tax Rate		25		%	25		%	25		%	24		%	25		%
Efficiency Ratio		52		%	57		%	64		%	64		%	57		%

Total assets		$	31,100,700		$	29,721,590		$	30,153,079		$	30,155,058		$	30,419,108		5	%	2	%

Total loans and leases		$	25,507,951		$	24,432,678		$	22,975,761		$	22,553,180		$	21,969,940		4	%	16	%
Total deposits		$	26,588,217		$	25,925,294		$	26,479,078		$	26,370,568		$	26,510,938		3	%	0	%

Key Rates, end of period:
10 year CMT		3.83		%	2.98		%	2.32		%	1.52		%	1.52		%	0.85		2.31
FHLMC 30 year fixed		6.70		%	5.70		%	4.67		%	3.11		%	3.01		%	1.00		3.69
nm = not meaningful
(1) Represents the internal charges for centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs.


Umpqua Holdings Corporation Segments - Continued
(Unaudited)
Mortgage Banking		Quarter Ended															% Change
(Dollars in thousands)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Net interest income		$	1,072		$	1,161		$	1,676		$	2,129		$	2,726		(8)	%	(61)	%
Provision for credit losses		—			—			—			—			—			nm		nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	10,515			15,101			16,844			23,624			30,293			(30)	%	(65)	%
	Servicing	9,529			9,505			9,140			9,457			9,172			0	%	4	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	(4,978)			(4,961)			(5,347)			(5,311)			(4,681)			0	%	6	%
	Changes due to valuation inputs or assumptions	16,403			10,899			40,149			15,415			(634)			51	%	(2,687)	%
	MSR hedge loss	(14,128)			—			—			—			—			nm		nm
	Non-interest income (excluding above items)	185			178			194			178			188			4	%	(2)	%
	Total non-interest income	17,526			30,722			60,980			43,363			34,338			(43)	%	(49)	%
Non-interest expense
	Non-interest expense	21,511			27,514			28,696			30,919			33,009			(22)	%	(35)	%
	Allocated expenses, net (1)	39			(3,702)			(3,735)			(4,314)			(3,680)			(101)	%	(101)	%
	Total non-interest expense	21,550			23,812			24,961			26,605			29,329			(9)	%	(27)	%
Income before income taxes		(2,952)			8,071			37,695			18,887			7,735			(137)	%	(138)	%
Provision for income taxes		(739)			2,018			9,424			4,721			1,934			(137)	%	(138)	%
Net income		$	(2,213)		$	6,053		$	28,271		$	14,166		$	5,801		(137)	%	(138)	%

Effective Tax Rate		25		%	25		%	25		%	25		%	25		%
Efficiency Ratio		116		%	75		%	40		%	58		%	79		%

Total assets		$	371,260		$	414,104		$	484,047		$	485,878		$	472,371		(10)	%	(21)	%
Loans held for sale		$	148,275		$	228,889		$	309,946		$	353,105		$	352,466		(35)	%	(58)	%

Total deposits		$	228,890		$	207,129		$	220,509		$	224,117		$	397,459		11	%	(42)	%

LHFS Production Statistics:
Closed loan volume for-sale		$	396,979		$	576,532		$	649,122		$	871,268		$	987,281		(31)	%	(60)	%
Gain on sale margin		2.65		%	2.62		%	2.59		%	2.71		%	3.07		%

Direct LHFS expense		$	10,465		$	13,197		$	14,296		$	18,150		$	19,958		(21)	%	(48)	%
Direct LHFS expenses as % of volume		2.64		%	2.29		%	2.20		%	2.08		%	2.02		%

MSR Statistics:
Residential mortgage loans serviced for others		$	12,997,911		$	12,932,747		$	12,810,574		$	12,755,671		$	12,853,291		1	%	1	%
MSR, net		$	196,177		$	179,558		$	165,807		$	123,615		$	105,834		9	%	85	%
MSR as % of serviced portfolio		1.51		%	1.39		%	1.29		%	0.97		%	0.82		%	0.12		0.69

Key Rates, end of period:
10 year CMT		3.83		%	2.98		%	2.32		%	1.52		%	1.52		%	0.85		2.31
FHLMC 30 year fixed		6.70		%	5.70		%	4.67		%	3.11		%	3.01		%	1.00		3.69
nm = not meaningful


Umpqua Holdings Corporation Segments
(Unaudited)
(in thousands)		Core Banking								Mortgage Banking
		Nine Months Ended						% Change		Nine Months Ended						% Change
		Sep 30, 2022			Sep 30, 2021			Year over Year		Sep 30, 2022			Sep 30, 2021			Year over Year
Net interest income		$	760,628		$	676,837		12	%	$	3,909		$	9,431		(59)	%
Provision (recapture) for credit losses		51,068			(41,915)			(222)	%	—			—			nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	—			—			nm		42,460			134,165			(68)	%
	Servicing	—			—			nm		28,174			27,379			3	%
	Change in fair value of MSR asset:							nm
	Changes due to collection/realization of expected cash flows over time	—			—			nm		(15,286)			(13,592)			12	%
	Changes due to valuation inputs or assumptions	—			—			nm		67,451			(4,326)			(1659)	%
	MSR hedge loss	—			—			nm		(14,128)			—			nm
	Gain on sale of debt securities, net	2			4			(50)	%	—			—			nm
	Loss on equity securities, net	(7,383)			(1,045)			607	%	—			—			nm
	Gain on swap derivatives, net	18,578			8,698			114	%	—			—			nm
	Change in fair value of certain loans held for investment	(62,656)			5,704			(1198)	%	—			—			nm
	Non-interest income (excluding above items)	106,880			115,913			(8)	%	557			680			(18)	%
	Total non-interest income	55,421			129,274			(57)	%	109,228			144,306			(24)	%
Non-interest expense

	Merger related expenses	5,719			—			nm		—			—			nm
	Exit and disposal costs	4,839			9,741			(50)	%	—			—			nm
	Non-interest expense (excluding above items)	451,689			438,969			3	%	77,721			112,035			(31)	%
	Allocated expenses, net (1)	7,398			3,860			92	%	(7,398)			(3,860)			92	%
	Total non-interest expense	469,645			452,570			4	%	70,323			108,175			(35)	%
Income before income taxes		295,336			395,456			(25)	%	42,814			45,562			(6)	%
Provision for income taxes		73,659			97,681			(25)	%	10,703			11,391			(6)	%
Net income		$	221,677		$	297,775		(26)	%	$	32,111		$	34,171		(6)	%

Effective Tax Rate		25		%	25		%	—		25		%	25		%	—
Efficiency Ratio		57		%	56		%	1.00		62		%	70		%	(8.00)

LHFS Production Statistics:
Closed loan volume for-sale										$	1,622,633		$	3,875,836		(58)	%
Gain on sale margin										2.62		%	3.46		%	(0.84)
Direct LHFS expense										$	37,958		$	76,568		(50)	%
Direct LHFS expenses as % of volume										2.34		%	1.98		%	0.36
nm = not meaningful

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 presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation
(Unaudited)
		Quarter Ended															% Change
(Dollars in thousands, except per share data)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Total shareholders' equity	a	$	2,417,514		$	2,518,276		$	2,607,598		$	2,749,270		$	2,722,379		(4)	%	(11)	%

Less: Other intangible assets, net		5,764			6,789			7,815			8,840			9,970			(15)	%	(42)	%
Tangible common shareholders' equity	b	$	2,411,750		$	2,511,487		$	2,599,783		$	2,740,430		$	2,712,409		(4)	%	(11)	%
Less: Accumulated other comprehensive income (AOCI)		$	(449,560)		(308,147)			(183,756)			1,759			20,209			46	%	nm
Tangible common shareholders' equity, ex AOCI	c	$	2,861,310		$	2,819,634		$	2,783,539		$	2,738,671		$	2,692,200		1	%	6	%

Total assets	d	$	31,471,960		$	30,135,694		$	30,637,126		$	30,640,936		$	30,891,479		4	%	2	%

Less: Other intangible assets, net		5,764			6,789			7,815			8,840			9,970			(15)	%	(42)	%
Tangible assets	e	$	31,466,196		$	30,128,905		$	30,629,311		$	30,632,096		$	30,881,509		4	%	2	%
Common shares outstanding at period end	f	217,053			217,049			216,967			216,626			216,622			0	%	—	%

Total shareholders' equity to total assets ratio	a / d	7.68		%	8.36		%	8.51		%	8.97		%	8.81		%	(0.68)		(1.13)
Tangible common equity ratio	b / e	7.66		%	8.34		%	8.49		%	8.95		%	8.78		%	(0.68)		(1.12)
Tangible common equity ratio, ex AOCI	c / e	9.09		%	9.36		%	9.09		%	8.94		%	8.72		%	(0.27)		0.37
Book value per common share	a / f	$	11.14		$	11.60		$	12.02		$	12.69		$	12.57		(4)	%	(11)	%
Tangible book value per common share	b / f	$	11.11		$	11.57		$	11.98		$	12.65		$	12.52		(4)	%	(11)	%
Tangible book value per common share, ex AOCI	c / f	$	13.18		$	12.99		$	12.83		$	12.64		$	12.43		1	%	6	%
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Quarter Ended										% Change
(Dollars in thousands)		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	—	$	—	$	2	$	4	$	—	nm		nm
(Loss) gain on equity securities, net		(2,647)		(2,075)		(2,661)		(466)		(343)		28	%	672	%
Gain (loss) on swap derivatives		4,194		7,337		7,047		(303)		1,429		(43)	%	193	%
Change in fair value of certain loans held for investment		(26,397)		(15,210)		(21,049)		(2,672)		3,432		74	%	nm
Change in fair value of MSR due to valuation inputs or assumptions		16,403		10,899		40,149		15,415		(634)		51	%	nm
MSR hedge loss		(14,128)		—		—		—		—		nm		nm
Total non-interest income adjustments	a	$	(22,575)	$	951	$	23,488	$	11,978	$	3,884	nm		nm

Non-Interest Expense Adjustments
Merger related expenses		$	769	$	2,672	$	2,278	$	15,183	$	—	(71)	%	nm
Exit and disposal costs		1,364		442		3,033		3,022		3,813		209	%	(64)	%
Total non-interest expense adjustments	b	$	2,133	$	3,114	$	5,311	$	18,205	$	3,813	(32)	%	(44)	%

Net interest income (1)	c	$	287,933	$	248,522	$	229,117	$	233,754	$	235,452	16	%	22	%

Non-interest income (GAAP)	d	$	29,445	$	55,235	$	79,969	$	82,738	$	73,705	(47)	%	(60)	%
Less: Non-interest income adjustments	a	22,575		(951)		(23,488)		(11,978)		(3,884)		nm		nm
Operating non-interest income (non-GAAP)	e	$	52,020	$	54,284	$	56,481	$	70,760	$	69,821	(4)	%	(25)	%

Revenue (GAAP) (1)	f=c+d	$	317,378	$	303,757	$	309,086	$	316,492	$	309,157	4	%	3	%
Operating revenue (non-GAAP) (1)	g=c+e	$	339,953	$	302,806	$	285,598	$	304,514	$	305,273	12	%	11	%

Non-interest expense (GAAP)	h	$	177,964	$	179,574	$	182,430	$	199,711	$	183,753	(1)	%	(3)	%
Less: Non-interest expense adjustments	b	(2,133)		(3,114)		(5,311)		(18,205)		(3,813)		(32)	%	(44)	%
Operating non-interest expense (non-GAAP)	i	$	175,831	$	176,460	$	177,119	$	181,506	$	179,940	—	%	(2)	%

Net income (GAAP)	j	$	84,040	$	78,591	$	91,157	$	88,354	$	108,066	7	%	(22)	%
Provision for income taxes		27,473		26,548		30,341		28,788		35,879		3	%	(23)	%
Income before provision for income taxes		111,513		105,139		121,498		117,142		143,945		6	%	(23)	%
Provision (recapture) for credit losses		27,572		18,692		4,804		(736)		(18,919)		48	%	(246)	%
Pre-provision net revenue (PPNR) (non-GAAP)	k	139,085		123,831		126,302		116,406		125,026		12	%	11	%
Less: Non-interest income adjustments	a	22,575		(951)		(23,488)		(11,978)		(3,884)		nm		nm
Add: Non-interest expense adjustments	b	2,133		3,114		5,311		18,205		3,813		(32)	%	(44)	%
Operating PPNR (non-GAAP)	l	$	163,793	$	125,994	$	108,125	$	122,633	$	124,955	30	%	31	%

Net income (GAAP)	j	$	84,040	$	78,591	$	91,157	$	88,354	$	108,066	7	%	(22)	%
Less: Non-interest income adjustments	a	22,575		(951)		(23,488)		(11,978)		(3,884)		nm		nm
Add: Non-interest expense adjustments	b	2,133		3,114		5,311		18,205		3,813		(32)	%	(44)	%
Tax effect of adjustments		(6,116)		(480)		4,576		1,190		18		nm		nm
Operating net income (non-GAAP)	m	$	102,632	$	80,274	$	77,556	$	95,771	$	108,013	28	%	(5)	%
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Quarter Ended															% Change
(Dollars in thousands, except per share data)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Average assets	n	$	30,668,177		$	30,356,903		$	30,597,413		$	30,886,378		$	30,614,374		1	%	—	%
Less: Average goodwill and other intangible assets, net		6,343			7,379			8,407			9,491			10,609			(14)	%	(40)	%
Average tangible assets	o	$	30,661,834		$	30,349,524		$	30,589,006		$	30,876,887		$	30,603,765		1	%	—	%

Average common shareholders' equity	p	$	2,567,266		$	2,584,836		$	2,715,059		$	2,717,753		$	2,709,641		(1)	%	(5)	%
Less: Average goodwill and other intangible assets, net		6,343			7,379			8,407			9,491			10,609			(14)	%	(40)	%
Average tangible common equity	q	$	2,560,923		$	2,577,457		$	2,706,652		$	2,708,262		$	2,699,032		(1)	%	(5)	%

Weighted average basic shares outstanding	r	217,051			217,030			216,782			216,624			218,416			0	%	(1)	%
Weighted average diluted shares outstanding	s	217,386			217,279			217,392			217,356			218,978			0	%	(1)	%

Select Per-Share & Performance Metrics
Earnings-per-share - basic	j / r	$	0.39		$	0.36		$	0.42		$	0.41		$	0.49		8	%	(20)	%
Earnings-per-share - diluted	j / s	$	0.39		$	0.36		$	0.42		$	0.41		$	0.49		8	%	(20)	%
Efficiency ratio	h / f	56.07		%	59.12		%	59.02		%	63.10		%	59.44		%	(3.05)		(3.37)
PPNR return on average assets	k / n	1.80		%	1.64		%	1.67		%	1.50		%	1.62		%	0.16		0.18
Return on average assets	j / n	1.09		%	1.04		%	1.21		%	1.13		%	1.40		%	0.05		(0.31)
Return on average tangible assets	j / o	1.09		%	1.04		%	1.21		%	1.14		%	1.40		%	0.05		(0.31)
Return on average common equity	j / p	12.99		%	12.20		%	13.62		%	12.90		%	15.82		%	0.79		(2.83)
Return on average tangible common equity	j / q	13.02		%	12.23		%	13.66		%	12.94		%	15.88		%	0.79		(2.86)

Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic	m / r	$	0.47		$	0.37		$	0.36		$	0.44		$	0.49		27	%	(4)	%
Operating earnings-per-share - diluted	m / s	$	0.47		$	0.37		$	0.36		$	0.44		$	0.49		27	%	(4)	%
Operating efficiency ratio	i / g	51.72		%	58.27		%	62.02		%	59.61		%	58.94		%	(6.55)		(7.22)
Operating PPNR return on average assets	l / n	2.12		%	1.66		%	1.43		%	1.58		%	1.62		%	0.46		0.50
Operating return on average assets	m / n	1.33		%	1.06		%	1.03		%	1.23		%	1.40		%	0.27		(0.07)
Operating return on average tangible assets	m / o	1.33		%	1.06		%	1.03		%	1.23		%	1.40		%	0.27		(0.07)
Operating return on average common equity	m / p	15.86		%	12.46		%	11.58		%	13.98		%	15.82		%	3.40		0.04
Operating return on average tangible common equity	m / q	15.90		%	12.49		%	11.62		%	14.03		%	15.88		%	3.41		0.02


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Core Banking		Quarter Ended															% Change
(Dollars in thousands)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	—		$	—		$	2		$	4		$	—		nm		nm
(Loss) gain on equity securities, net		(2,647)			(2,075)			(2,661)			(466)			(343)			28	%	672	%
Gain (loss) on swap derivatives		4,194			7,337			7,047			(303)			1,429			(43)	%	193	%
Change in fair value of certain loans held for investment		(26,397)			(15,210)			(21,049)			(2,672)			3,432			74	%	(869)	%
Total non-interest income adjustments	a	$	(24,850)		$	(9,948)		$	(16,661)		$	(3,437)		$	4,518		150	%	(650)	%

Non-Interest Expense Adjustments
Merger related expenses		$	769		$	2,672		$	2,278		$	15,183		$	—		(71)	%	nm
Exit and disposal costs		1,364			442			3,033			3,022			3,813			209	%	(64)	%
Total non-interest expense adjustments	b	$	2,133		$	3,114		$	5,311		$	18,205		$	3,813		(32)	%	(44)	%

Net interest income (1)	c	$	286,861		$	247,361		$	227,441		$	231,625		$	232,726		16	%	23	%

Non-interest income (GAAP)	d	$	11,919		$	24,513		$	18,989		$	39,375		$	39,367		(51)	%	(70)	%
Less: Non-interest income adjustments	a	24,850			9,948			16,661			3,437			(4,518)			150	%	(650)	%
Operating non-interest income (non-GAAP)	e	$	36,769		$	34,461		$	35,650		$	42,812		$	34,849		7	%	6	%

Revenue (GAAP) (1)	f=c+d	$	298,780		$	271,874		$	246,430		$	271,000		$	272,093		10	%	10	%
Operating revenue (non-GAAP) (1)	g=c+e	$	323,630		$	281,822		$	263,091		$	274,437		$	267,575		15	%	21	%

Non-interest expense (GAAP) (2)	h	$	156,414		$	155,762		$	157,469		$	173,106		$	154,424		—	%	1	%
Less: Non-interest expense adjustments	b	(2,133)			(3,114)			(5,311)			(18,205)			(3,813)			(32)	%	(44)	%
Operating non-interest expense (non-GAAP)	i	$	154,281		$	152,648		$	152,158		$	154,901		$	150,611		1	%	2	%

Net income (GAAP)	j	$	86,253		$	72,538		$	62,886		$	74,188		$	102,265		19	%	(16)	%
Provision for income taxes		28,212			24,530			20,917			24,067			33,945			15	%	(17)	%
Income before provision for income taxes		114,465			97,068			83,803			98,255			136,210			18	%	(16)	%
Provision (recapture) for credit losses		27,572			18,692			4,804			(736)			(18,919)			48	%	(246)	%
Pre-provision net revenue (PPNR) (non-GAAP)	k	142,037			115,760			88,607			97,519			117,291			23	%	21	%
Less: Non-interest income adjustments	a	24,850			9,948			16,661			3,437			(4,518)			150	%	(650)	%
Add: Non-interest expense adjustments	b	2,133			3,114			5,311			18,205			3,813			(32)	%	(44)	%
Operating PPNR (non-GAAP)	l	$	169,020		$	128,822		$	110,579		$	119,161		$	116,586		31	%	45	%

Net income (GAAP)	j	$	86,253		$	72,538		$	62,886		$	74,188		$	102,265		19	%	(16)	%
Less: Non-interest income adjustments	a	24,850			9,948			16,661			3,437			(4,518)			150	%	(650)	%
Add: Non-interest expense adjustments	b	2,133			3,114			5,311			18,205			3,813			(32)	%	(44)	%
Tax effect of adjustments		(6,685)			(3,205)			(5,461)			(2,664)			177			109	%	(3,877)	%
Operating net income (non-GAAP)	m	$	106,551		$	82,395		$	79,397		$	93,166		$	101,737		29	%	5	%

Efficiency ratio	h / f	52.35		%	57.29		%	63.90		%	63.88		%	56.75		%	(4.94)		(4.40)
Operating efficiency ratio	i / g	47.67		%	54.16		%	57.83		%	56.44		%	56.29		%	(6.49)		(8.62)
Core Banking net income / Consolidated net income		102.63		%	92.30		%	68.99		%	83.97		%	94.63		%	10.33		8.00
Core Banking operating net income / Consolidated operating net income		103.82		%	102.64		%	102.37		%	97.28		%	94.19		%	1.18		9.63
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Mortgage Banking		Quarter Ended															% Change
(Dollars in thousands)		Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Change in fair value of MSR due to valuation inputs or assumptions		$	16,403		$	10,899		$	40,149		$	15,415		$	(634)		51	%	nm
MSR hedge loss		(14,128)			—			—			—			—			nm		nm
Total non-interest income adjustments	a	$	2,275		$	10,899		$	40,149		$	15,415		$	(634)		(79)	%	(459)	%

Total non-interest expense adjustments	b	$	—		$	—		$	—		$	—		$	—		nm		nm

Net interest income	c	$	1,072		$	1,161		$	1,676		$	2,129		$	2,726		(8)	%	(61)	%

Non-interest income (GAAP)	d	$	17,526		$	30,722		$	60,980		$	43,363		$	34,338		(43)	%	(49)	%
Less: Non-interest income adjustments	a	(2,275)			(10,899)			(40,149)			(15,415)			634			(79)	%	(459)	%
Operating non-interest income (non-GAAP)	e	$	15,251		$	19,823		$	20,831		$	27,948		$	34,972		(23)	%	(56)	%

Revenue (GAAP)	f=c+d	$	18,598		$	31,883		$	62,656		$	45,492		$	37,064		(42)	%	(50)	%
Operating revenue (non-GAAP)	g=c+e	16,323			20,984			22,507			30,077			37,698			(22)	%	(57)	%

Non-interest expense (GAAP) (1)	h	21,550			23,812			24,961			26,605			29,329			(9)	%	(27)	%
Less: Non-interest expense adjustments	b	—			—			—			—			—			nm		nm
Operating non-interest expense (non-GAAP)	i	$	21,550		$	23,812		$	24,961		$	26,605		$	29,329		(9)	%	(27)	%

Net income (GAAP)	j	$	(2,213)		$	6,053		$	28,271		$	14,166		$	5,801		(137)	%	(138)	%
Provision for income taxes		(739)			2,018			9,424			4,721			1,934			(137)	%	(138)	%
Income before provision for income taxes		(2,952)			8,071			37,695			18,887			7,735			(137)	%	(138)	%
Provision for credit losses		—			—			—			—			—			nm		nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	(2,952)			8,071			37,695			18,887			7,735			(137)	%	(138)	%
Less: Non-interest income adjustments	a	(2,275)			(10,899)			(40,149)			(15,415)			634			(79)	%	(459)	%
Add: Non-interest expense adjustments	b	—			—			—			—			—			nm		nm
Operating PPNR (non-GAAP)	l	$	(5,227)		$	(2,828)		$	(2,454)		$	3,472		$	8,369		85	%	(162)	%

Net income (GAAP)	j	$	(2,213)		$	6,053		$	28,271		$	14,166		$	5,801		(137)	%	(138)	%
Less: Non-interest income adjustments	a	(2,275)			(10,899)			(40,149)			(15,415)			634			(79)	%	(459)	%
Add: Non-interest expense adjustments	b	—			—			—			—			—			nm		nm
Tax effect of adjustments		569			2,725			10,037			3,854			(159)			(79)	%	(458)	%
Operating net income (non-GAAP)	m	$	(3,919)		$	(2,121)		$	(1,841)		$	2,605		$	6,276		85	%	(162)	%

Efficiency ratio	h / f	115.87		%	74.69		%	39.84		%	58.48		%	79.13		%	41.18		36.74
Operating efficiency ratio	i / g	132.02		%	113.48		%	110.90		%	88.46		%	77.80		%	18.54		54.22
Mortgage Banking net income / Consolidated net income		(2.63)		%	7.70		%	31.01		%	16.03		%	5.37		%	(10.33)		(8.00)
Mortgage Banking operating net income / Consolidated operating net income		(3.82)		%	(2.64)		%	(2.37)		%	2.72		%	5.81		%	(1.18)		(9.63)
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Year to Date				% Change
(Dollars in thousands)		Sep 30, 2022		Sep 30, 2021		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	2	$	4	(50)	%
Loss on equity securities, net		(7,383)		(1,045)		nm
Gain on swap derivatives		18,578		8,698		114	%
Change in fair value of certain loans held for investment		(62,656)		5,704		nm
Change in fair value of MSR due to valuation inputs or assumptions		67,451		(4,326)		nm
MSR hedge loss		(14,128)		—		nm
Total non-interest income adjustments	a	$	1,864	$	9,035	(79)	%

Non-Interest Expense Adjustments
Merger related expenses		$	5,719	$	—	nm
Exit and disposal costs		4,839		9,741		(50)	%
Total non-interest expense adjustments	b	$	10,558	$	9,741	8	%

Net interest income (1)	c	$	765,572	$	687,404	11	%

Non-interest income (GAAP)	d	$	164,649	$	273,580	(40)	%
Less: Non-interest income adjustments	a	(1,864)		(9,035)		(79)	%
Operating non-interest income (non-GAAP)	e	$	162,785	$	264,545	(38)	%

Revenue (GAAP) (1)	f=c+d	$	930,221	$	960,984	(3)	%
Operating revenue (non-GAAP) (1)	g=c+e	$	928,357	$	951,949	(2)	%

Non-interest expense (GAAP)	h	$	539,968	$	560,745	(4)	%
Less: Non-interest expense adjustments	b	(10,558)		(9,741)		8	%
Operating non-interest expense (non-GAAP)	i	$	529,410	$	551,004	(4)	%

Net income (GAAP)	j	$	253,788	$	331,946	(24)	%
Provision for income taxes		84,362		109,072		(23)	%
Income before provision for income taxes		338,150		441,018		(23)	%
Provision (recapture) for credit losses		51,068		(41,915)		(222)	%
Pre-provision net revenue (PPNR) (non-GAAP)	k	389,218		399,103		(2)	%
Less: Non-interest income adjustments	a	(1,864)		(9,035)		(79)	%
Add: Non-interest expense adjustments	b	10,558		9,741		8	%
Operating PPNR (non-GAAP)	l	$	397,912	$	399,809	—	%

Net income (GAAP)	j	$	253,788	$	331,946	(24)	%
Less: Non-interest income adjustments	a	(1,864)		(9,035)		(79)	%
Add: Non-interest expense adjustments	b	10,558		9,741		8	%
Tax effect of adjustments		(2,020)		(177)		nm
Operating net income (non-GAAP)	m	$	260,462	$	332,475	(22)	%
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Year to Date						% Change
(Dollars in thousands)		Sep 30, 2022			Sep 30, 2021			Year over Year
Average assets	n	$	30,541,027		$	30,058,769		2	%
Less: Average goodwill and other intangible assets, net		$	7,369		$	12,922		(43)	%
Average tangible assets	o	$	30,533,658		$	30,045,847		2	%

Average common shareholders' equity	p	$	2,621,725		$	2,694,968		(3)	%
Less: Average goodwill and other intangible assets, net		$	7,369		$	12,922		(43)	%
Average tangible common equity	q	$	2,614,356		$	2,682,046		(3)	%

Weighted average basic shares outstanding	r	216,955			219,791			(1)	%
Weighted average diluted shares outstanding	s	217,353			220,278			(1)	%

Select Per-Share & Performance Metrics
Earnings-per-share - basic	j / r	$	1.17		$	1.51		(23)	%
Earnings-per-share - diluted	j / s	$	1.17		$	1.51		(23)	%
Efficiency ratio	h / f	58.05		%	58.35		%	(0.30)
PPNR return on average assets	k / n	1.70		%	1.78		%	(0.08)
Return on average assets	j / n	1.11		%	1.48		%	(0.37)
Return on average tangible assets	j / o	1.11		%	1.48		%	(0.37)
Return on average common equity	j / p	12.94		%	16.47		%	(3.53)
Return on average tangible common equity	j / q	12.98		%	16.55		%	(3.57)

Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic	m / r	$	1.20		$	1.51		(21)	%
Operating earnings-per-share - diluted	m / s	$	1.20		$	1.51		(21)	%
Operating efficiency ratio	i / g	57.03		%	57.88		%	(0.85)
Operating PPNR return on average assets	l / n	1.74		%	1.78		%	(0.04)
Operating return on average assets	m / n	1.14		%	1.48		%	(0.34)
Operating return on average tangible assets	m / o	1.14		%	1.48		%	(0.34)
Operating return on average common equity	m / p	13.28		%	16.49		%	(3.21)
Operating return on average tangible common equity	m / q	13.32		%	16.57		%	(3.25)


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)

Core Banking		Year to Date						% Change
(Dollars in thousands)		Sep 30, 2022			Sep 30, 2021			Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	2		$	4		(50)	%
Loss on equity securities, net		(7,383)			(1,045)			607	%
Gain on swap derivatives		18,578			8,698			114	%
Change in fair value of certain loans held for investment		(62,656)			5,704			nm
Total non-interest income adjustments	a	$	(51,459)		$	13,361		(485)	%

Non-Interest Expense Adjustments
Merger related expenses		$	5,719		$	—		nm
Exit and disposal costs		4,839			9,741			(50)	%
Total non-interest expense adjustments	b	$	10,558		$	9,741		8	%

Net interest income (1)	c	$	761,663		$	677,973		12	%

Non-interest income (GAAP)	d	$	55,421		$	129,274		(57)	%
Less: Non-interest income adjustments	a	51,459			(13,361)			(485)	%
Operating non-interest income (non-GAAP)	e	$	106,880		$	115,913		(8)	%

Revenue (GAAP) (1)	f=c+d	$	817,084		$	807,247		1	%
Operating revenue (non-GAAP) (1)	g=c+e	$	868,543		$	793,886		9	%

Non-interest expense (GAAP) (2)	h	$	469,645		$	452,570		4	%
Less: Non-interest expense adjustments	b	(10,558)			(9,741)			8	%
Operating non-interest expense (non-GAAP)	i	$	459,087		$	442,829		4	%

Net income (GAAP)	j	$	221,677		$	297,775		(26)	%
Provision for income taxes		73,659			97,681			(25)	%
Income before provision for income taxes		295,336			395,456			(25)	%
Provision (recapture) for credit losses		51,068			(41,915)			(222)	%
Pre-provision net revenue (PPNR) (non-GAAP)	k	346,404			353,541			(2)	%
Less: Non-interest income adjustments	a	51,459			(13,361)			(485)	%
Add: Non-interest expense adjustments	b	10,558			9,741			8	%
Operating PPNR (non-GAAP)	l	$	408,421		$	349,921		17	%

Net income (GAAP)	j	$	221,677		$	297,775		(26)	%
Less: Non-interest income adjustments	a	51,459			(13,361)			(485)	%
Add: Non-interest expense adjustments	b	10,558			9,741			8	%
Tax effect of adjustments		(15,351)			905			nm
Operating net income (non-GAAP)	m	$	268,343		$	295,060		(9)	%

Efficiency ratio	h / f	57.48		%	56.06		%	1.42
Operating efficiency ratio	i / g	52.86		%	55.78		%	(2.92)
Core Banking net income / Consolidated net income		87.35		%	89.71		%	(2.36)
Core Banking operating net income / Consolidated operating net income		103.03		%	88.75		%	14.28
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Mortgage Banking		Year to Date						% Change
(Dollars in thousands)		Sep 30, 2022			Sep 30, 2021			Year over Year
Non-Interest Income Adjustments
Change in fair value of MSR due to valuation inputs or assumptions		$	67,451		$	(4,326)		nm
MSR hedge loss		(14,128)			—			nm
Total non-interest income adjustments	a	$	53,323		$	(4,326)		nm

Total non-interest expense adjustments	b	$	—		$	—		nm

Net interest income	c	$	3,909		$	9,431		(59)	%

Non-interest income (GAAP)	d	$	109,228		$	144,306		(24)	%
Less: Non-interest income adjustments	a	(53,323)			4,326			nm
Operating non-interest income (non-GAAP)	e	$	55,905		$	148,632		(62)	%

Revenue (GAAP)	f=c+d	$	113,137		$	153,737		(26)	%
Operating revenue (non-GAAP)	g=c+e	$	59,814		$	158,063		(62)	%

Non-interest expense (GAAP) (1)	h	$	70,323		$	108,175		(35)	%
Less: Non-interest expense adjustments	b	—			—			nm
Operating non-interest expense (non-GAAP)	i	$	70,323		$	108,175		(35)	%

Net income (GAAP)	j	$	32,111		$	34,171		(6)	%
Provision for income taxes		10,703			11,391			(6)	%
Income before provision for income taxes		42,814			45,562			(6)	%
Provision for credit losses		—			—			nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	42,814			45,562			(6)	%
Less: Non-interest income adjustments	a	(53,323)			4,326			nm
Add: Non-interest expense adjustments	b	—			—			nm
Operating PPNR (non-GAAP)	l	$	(10,509)		$	49,888		(121)	%

Net income (GAAP)	j	$	32,111		$	34,171		(6)	%
Less: Non-interest income adjustments	a	(53,323)			4,326			nm
Add: Non-interest expense adjustments	b	—			—			nm
Tax effect of adjustments		13,331			(1,082)			nm
Operating net income (non-GAAP)	m	$	(7,881)		$	37,415		(121)	%

Efficiency ratio	h / f	62.16		%	70.36		%	(8.20)
Operating efficiency ratio	i / g	117.57		%	68.44		%	49.13
Mortgage Banking net income / Consolidated net income		12.65		%	10.29		%	2.36
Mortgage Banking operating net income / Consolidated operating net income		(3.03)		%	11.25		%	(14.28)
nm = not meaningful


UMPQUA REPORTS THIRD QUARTER 2022 RESULTS
$0.39	$84	13.02%	13.2%
Net earnings per diluted common share	Net income ($ in millions)	Return on average tangible common equity ("ROATCE")1	Total risk-based capital ratio (estimated)


			Third Quarter 2022 Results •Net income of $84 million, or $0.39 per common share •Operating net income of $103 million, or $0.47 per common share1 •Loan balances increased $1.1 billion or 4.4% •Deposit balances increased $685 million or 2.6% •Net interest margin increased 47 basis points to 3.88%


			TABLE INDEX
						Page
			Consolidated Statements of Operations			6
			Consolidated Balance Sheets			8
			Financial Highlights			9
			Loan & Lease Portfolio Balances and Mix			11
			Deposit Balances, Mix, and Select Account Details			12
			Credit Quality - Non-performing Assets			13
			Credit Quality - Allowance for Credit Losses			14
			Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates			16
			Segments			18
			GAAP to Non-GAAP Reconciliation			21