Document


CEO Commentary
“Continued growth, outstanding credit quality, and net interest margin expansion again characterize Umpqua’s quarterly results and round out what has been an exceptional year for the bank,” said Cort O’Haver, President and CEO. “As we look forward to our upcoming merger with Columbia Banking System, which we expect to close on February 28, 2023, I want to thank our teams for their tireless efforts over the past 15 months. Umpqua associates' support of each other and dedicated focus on relationship banking with our customers and within our communities is evidenced by our ability to profitably grow the bank while simultaneously planning for our transformational combination with Columbia.”
–Cort O’Haver, President and CEO of Umpqua Holdings Corporation


4Q22 HIGHLIGHTS (COMPARED TO 3Q22)

Net Interest Income and NIM			•Net interest income increased by $18 million or 6% on a quarter-to-quarter basis due to the favorable impact of rising interest rates and higher average earning asset balances.
			•Net interest margin was 4.01%, up 13 basis points from the prior quarter. Total deposit costs were 46 basis points for the quarterly average and 66 basis points on December 31, 2022, compared to 22 basis points on September 30, 2022.

Non-Interest Income and Expense			•Non-interest income increased by $5.4 million as a smaller loss related to the impact of interest rates on fair value accounting and hedges was partially offset by lower residential mortgage gain-on-sale income.
			•Non-interest expense increased by $17 million due primarily to higher merger-related expenses and a $4.9 million accrual for state and local business taxes captured in other expenses that is not expect to repeat in future quarters.

Credit Quality			•Net charge-offs were 0.19% of average loans and leases (annualized) and centered in the FinPac portfolio.
			•Provision expense of $33 million compares to $28 million for the prior quarter.
			•Non-performing assets to total assets was 0.18% compared to 0.16% at September 30, 2022.

Capital			•Estimated total risk-based capital ratio of 13.7% and estimated tier 1 risk-based capital ratio of 11.0%.
			•Declared a quarterly cash dividend of $0.21 per common share on January 11, 2023, payable February 6, 2023, to holders of record as of January 23, 2023.

Notable items			•Set an expected merger closing date of February 28, 2023 after the close of business, subject to the satisfaction of closing conditions.
			•Structural adjustments within the mortgage banking segment continued as additional changes were announced in January, inclusive of further staff reductions.


4Q22 KEY FINANCIAL DATA

PERFORMANCE METRICS	4Q22		3Q22		4Q21
Return on average assets	1.04%		1.09%		1.13%
Return on average tangible common equity1	13.53%		13.02%		12.94%
Operating return on average assets1	1.24%		1.33%		1.23%
Operating return on average tangible common equity1	16.18%		15.90%		14.03%
Net interest margin	4.01%		3.88%		3.15%
Efficiency ratio	57.24%		56.07%		63.10%
Loan to deposit ratio	96.64%		95.12%		84.80%

INCOME STATEMENT ($ in 000s, excl. per share data)	4Q22		3Q22		4Q21
Net interest income	$305,479		$287,604		$233,379
Provision (recapture) for credit losses	$32,948		$27,572		($736)
Non-interest income	$34,879		$29,445		$82,738
Non-interest expense	$194,982		$177,964		$199,711
Pre-provision net revenue1	$145,376		$139,085		$116,406
Operating pre-provision net revenue1	$167,094		$163,793		$122,633
Earnings per common share - diluted	$0.38		$0.39		$0.41
Operating earnings per common share - diluted1	$0.46		$0.47		$0.44
Dividends paid per share	$0.21		$0.21		$0.21

BALANCE SHEET	4Q22		3Q22		4Q21
Total assets	$31.8	B	$31.5	B	$30.6	B
Loans and leases	$26.2	B	$25.5	B	$22.6	B
Total deposits	$27.1	B	$26.8	B	$26.6	B
Book value per common share	$11.42		$11.14		$12.69
Tangible book value per share	$11.40		$11.11		$12.65
Tangible book value per share, ex AOCI1	$13.37		$13.18		$12.64

The allowance for credit losses was $315 million, or 1.21% of loans and leases, as of December 31, 2022, compared to $295 million, or 1.16% of loans and leases, as of September 30, 2022. The provision for credit losses of $33 million for the fourth quarter of 2022 compares to a provision of $28 million for the third quarter of 2022. The current quarter's provision reflects allowance requirements for changes between the August 2022 and November 2022 economic forecasts used in credit models, which contributed to the quarter's expense; loan portfolio mix changes and performance; and new loan generation. Please refer to the Q4 2022 Earnings Presentation available on our website for additional details related to the allowance for credit losses.

Revenue from the origination and sale of residential mortgages was $4.3 million for the fourth quarter of 2022 compared to $10.5 million for the prior quarter. The linked-quarter decline reflects a sequential quarter decrease of $180 million or 45% in for-sale mortgage origination volume and a decline in the home lending gain on sale margin to 1.96% for the fourth quarter of 2022 compared to 2.65% for the prior quarter. Of the current quarter’s mortgage production, 89% related to purchase activity, compared to 92% for the prior quarter and 54% for the same period in the prior year. In the fourth quarter of 2022, we recorded a net write down of the MSR asset of $15 million, which includes a $10 million fair value loss related to model inputs. We correspondingly recorded a $0.3 million loss during the quarter related to the MSR hedges put in place in mid-August 2022. An increase in the expected cost of escrow deposits, which is not hedged, was the primary driver of the quarter's decline in the MSR asset value due to model inputs.

As of December 31, 2022, the Company’s tangible book value per common share1 was $11.40, which compares to $11.11 at September 30, 2022 and $12.65 at December 31, 2021. While rising interest rates drove a decline in the fair value of available-for-sale investment securities and an increase in the fair value of junior subordinated debt between year-end 2021 and year-end 2022, a modest decrease in interest rates during the fourth quarter contributed to a slight reversal of these trends and the linked-quarter increase in tangible book value. These fair value change impacts are captured in accumulated other comprehensive (loss) income ("AOCI"), which was $(427) million at December 31, 2022, compared to $(450) million at September 30, 2022 and $1.8 million at December 31, 2021. Excluding AOCI, tangible book1 of $13.37 at December 31, 2022 compares to $13.18 and $12.64 for the linked-quarter and year-ago periods, respectively.

The Core Banking segment includes all lines of business, except Mortgage Banking, including commercial, retail, and private banking, 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 MSR asset, the quarterly changes in the MSR hedge, and the specific expenses that are related to mortgage banking activities including variable commission expenses. Revenue and associated expenses related to residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are primarily originated through the Bank's retail consumer (store) and private banking channels. Management periodically updates the allocation methods and assumptions within the current segment structure.

Umpqua Holdings Corporation (Nasdaq: UMPQ), headquartered in Lake Oswego, 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 18 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 the closing of our pending merger with Columbia Banking System, Inc. and strategic and growth initiatives. 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)	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	322,350	$	278,830	$	234,674	$	214,404	$	221,501	16	%	46	%
Interest and dividends on investments:
Taxable	18,108		18,175		17,256		18,725		16,566		—	%	9	%
Exempt from federal income tax	1,288		1,322		1,369		1,372		1,456		(3)	%	(12)	%
Dividends	182		86		84		86		102		112	%	78	%
Temporary investments and interest bearing deposits	10,319		5,115		2,919		1,353		1,229		102	%	nm
Total interest income	352,247		303,528		256,302		235,940		240,854		16	%	46	%
Interest expense:
Deposits	31,174		9,090		4,015		3,916		4,357		243	%	nm
Securities sold under agreement to repurchase and federal funds purchased	323		545		66		63		48		(41)	%	nm
Borrowings	8,023		798		50		49		51		nm		nm
Junior subordinated debentures	7,248		5,491		4,001		3,149		3,019		32	%	140	%
Total interest expense	46,768		15,924		8,132		7,177		7,475		194	%	nm
Net interest income	305,479		287,604		248,170		228,763		233,379		6	%	31	%
Provision (recapture) for credit losses	32,948		27,572		18,692		4,804		(736)		19	%	nm
Non-interest income:
Service charges on deposits	12,139		12,632		12,011		11,583		11,188		(4)	%	9	%
Card-based fees	9,017		9,115		10,530		8,708		9,355		(1)	%	(4)	%
Brokerage revenue	25		27		27		11		31		(7)	%	(19)	%
Residential mortgage banking (loss) revenue, net	(1,812)		17,341		30,544		60,786		43,185		(110)	%	(104)	%
Gain on sale of debt securities, net	—		—		—		2		4		nm		(100)	%
Gain (loss) on equity securities, net	284		(2,647)		(2,075)		(2,661)		(466)		nm		nm
Gain on loan and lease sales, net	1,531		1,525		1,303		2,337		4,816		—	%	(68)	%
BOLI income	2,033		2,023		2,110		2,087		2,101		—	%	(3)	%
Other income (loss)	11,662		(10,571)		785		(2,884)		12,524		nm		(7)	%
Total non-interest income	34,879		29,445		55,235		79,969		82,738		18	%	(58)	%
Non-interest expense:
Salaries and employee benefits	107,982		109,164		110,942		113,138		117,477		(1)	%	(8)	%
Occupancy and equipment, net	34,021		35,042		34,559		34,829		34,310		(3)	%	(1)	%
Intangible amortization	1,019		1,025		1,026		1,025		1,130		(1)	%	(10)	%
FDIC assessments	3,487		3,007		2,954		4,516		2,896		16	%	20	%
Merger related expenses	11,637		769		2,672		2,278		15,183		nm		(23)	%

Other expenses	36,836		28,957		27,421		26,644		28,715		27	%	28	%
Total non-interest expense	194,982		177,964		179,574		182,430		199,711		10	%	(2)	%
Income before provision for income taxes	112,428		111,513		105,139		121,498		117,142		1	%	(4)	%
Provision for income taxes	29,464		27,473		26,548		30,341		28,788		7	%	2	%
Net income	$	82,964	$	84,040	$	78,591	$	91,157	$	88,354	(1)	%	(6)	%

Weighted average basic shares outstanding	217,054		217,051		217,030		216,782		216,624		—	%	—	%
Weighted average diluted shares outstanding	217,566		217,386		217,279		217,392		217,356		—	%	—	%
Earnings per common share – basic	$	0.38	$	0.39	$	0.36	$	0.42	$	0.41	(3)	%	(7)	%
Earnings per common share – diluted	$	0.38	$	0.39	$	0.36	$	0.42	$	0.41	(3)	%	(7)	%

nm = not meaningful


Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)

	Year Ended				% Change
(In thousands, except per share data)	Dec 31, 2022		Dec 31, 2021		Year over Year
Interest income:
Loans and leases	$	1,050,258	$	890,515	18	%
Interest and dividends on investments:
Taxable	72,264		60,399		20	%
Exempt from federal income tax	5,351		5,947		(10)	%
Dividends	438		1,318		(67)	%
Temporary investments and interest bearing deposits	19,706		3,864		410	%
Total interest income	1,148,017		962,043		19	%
Interest expense:
Deposits	48,195		27,151		78	%
Securities sold under agreement to repurchase and federal funds purchased	997		280		256	%
Borrowings	8,920		2,838		214	%
Junior subordinated debentures	19,889		12,127		64	%
Total interest expense	78,001		42,396		84	%
Net interest income	1,070,016		919,647		16	%
Provision (recapture) for credit losses	84,016		(42,651)		nm
Non-interest income:
Service charges on deposits	48,365		42,086		15	%
Card-based fees	37,370		36,114		3	%
Brokerage revenue	90		5,112		(98)	%
Residential mortgage banking revenue, net	106,859		186,811		(43)	%
Gain on sale of debt securities, net	2		8		(75)	%
Loss on equity securities, net	(7,099)		(1,511)		370	%
Gain on loan and lease sales, net	6,696		15,715		(57)	%

BOLI income	8,253		8,302		(1)	%
Other (loss) income	(1,008)		63,681		(102)	%
Total non-interest income	199,528		356,318		(44)	%
Non-interest expense:
Salaries and employee benefits	441,226		480,820		(8)	%
Occupancy and equipment, net	138,451		137,546		1	%
Intangible amortization	4,095		4,520		(9)	%
FDIC assessments	13,964		9,238		51	%
Merger related expenses	17,356		15,183		14	%

Other expenses	119,858		113,149		6	%
Total non-interest expense	734,950		760,456		(3)	%
Income before provision for income taxes	450,578		558,160		(19)	%
Provision for income taxes	113,826		137,860		(17)	%
Net income	$	336,752	$	420,300	(20)	%

Weighted average basic shares outstanding	216,980		219,032		(1)	%
Weighted average diluted shares outstanding	217,403		219,581		(1)	%
Earnings per common share – basic	$	1.55	$	1.92	(19)	%
Earnings per common share – diluted	$	1.55	$	1.91	(19)	%

nm = not meaningful


Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)

																% Change
(In thousands, except per share data)	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	327,313		$	321,447		$	315,348		$	307,144		$	222,015		2	%	47	%
Interest bearing cash and temporary investments	967,330			1,232,412			687,233			2,358,292			2,539,606			(22)	%	(62)	%
Investment securities:
Equity and other, at fair value	72,959			72,277			75,347			78,966			81,214			1	%	(10)	%
Available for sale, at fair value	3,196,166			3,136,391			3,416,707			3,638,080			3,870,435			2	%	(17)	%
Held to maturity, at amortized cost	2,476			2,547			2,637			2,700			2,744			(3)	%	(10)	%
Loans held for sale	71,647			148,275			228,889			309,946			353,105			(52)	%	(80)	%
Loans and leases	26,155,981			25,507,951			24,432,678			22,975,761			22,553,180			3	%	16	%
Allowance for credit losses on loans and leases	(301,135)			(283,065)			(261,111)			(248,564)			(248,412)			6	%	21	%
Net loans and leases	25,854,846			25,224,886			24,171,567			22,727,197			22,304,768			2	%	16	%
Restricted equity securities	47,144			40,993			10,867			10,889			10,916			15	%	332	%
Premises and equipment, net	176,016			165,305			165,196			167,369			171,125			6	%	3	%
Operating lease right-of-use assets	78,598			81,729			87,249			87,333			82,366			(4)	%	(5)	%

Other intangible assets, net	4,745			5,764			6,789			7,815			8,840			(18)	%	(46)	%
Residential mortgage servicing rights, at fair value	185,017			196,177			179,558			165,807			123,615			(6)	%	50	%
Bank owned life insurance	331,759			329,699			328,764			328,040			327,745			1	%	1	%
Deferred tax asset, net	132,823			128,120			70,134			39,051			—			4	%	nm
Other assets	399,800			385,938			389,409			408,497			542,442			4	%	(26)	%
Total assets	$	31,848,639		$	31,471,960		$	30,135,694		$	30,637,126		$	30,640,936		1	%	4	%
Liabilities:
Deposits	$	27,065,612		$	26,817,107		$	26,132,423		$	26,699,587		$	26,594,685		1	%	2	%
Securities sold under agreements to repurchase	308,769			383,569			527,961			499,539			492,247			(20)	%	(37)	%
Borrowings	906,175			756,214			6,252			6,290			6,329			20	%	nm
Junior subordinated debentures, at fair value	323,639			325,744			321,268			305,719			293,081			(1)	%	10	%
Junior subordinated debentures, at amortized cost	87,813			87,870			87,927			87,984			88,041			—	%	—	%
Operating lease liabilities	91,694			95,512			101,352			101,732			95,427			(4)	%	(4)	%
Deferred tax liability, net	—			—			—			—			4,353			nm		(100)	%
Other liabilities	585,111			588,430			440,235			328,677			317,503			(1)	%	84	%
Total liabilities	29,368,813			29,054,446			27,617,418			28,029,528			27,891,666			1	%	5	%
Shareholders' equity:
Common stock	3,450,493			3,448,007			3,445,531			3,443,266			3,444,849			—	%	—	%
Accumulated deficit	(543,803)			(580,933)			(619,108)			(651,912)			(697,338)			(6)	%	(22)	%
Accumulated other comprehensive (loss) income	(426,864)			(449,560)			(308,147)			(183,756)			1,759			(5)	%	nm
Total shareholders' equity	2,479,826			2,417,514			2,518,276			2,607,598			2,749,270			3	%	(10)	%
Total liabilities and shareholders' equity	$	31,848,639		$	31,471,960		$	30,135,694		$	30,637,126		$	30,640,936		1	%	4	%

Common shares outstanding at period end	217,054			217,053			217,049			216,967			216,626			—	%	—	%
Book value per common share	$	11.42		$	11.14		$	11.60		$	12.02		$	12.69		3	%	(10)	%
Tangible book value per common share (1)	$	11.40		$	11.11		$	11.57		$	11.98		$	12.65		3	%	(10)	%
Tangible equity - common (1)	$	2,475,081		$	2,411,750		$	2,511,487		$	2,599,783		$	2,740,430		3	%	(10)	%
Tangible common equity to tangible assets (1)	7.77		%	7.66		%	8.34		%	8.49		%	8.95		%	0.11		(1.18)
nm = not meaningful


Umpqua Holdings Corporation
Financial Highlights
(Unaudited)
	Quarter Ended															% Change
	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 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	$	11.42		$	11.14		$	11.60		$	12.02		$	12.69		3	%	(10)	%
Tangible book value (1)	$	11.40		$	11.11		$	11.57		$	11.98		$	12.65		3	%	(10)	%
Tangible book value, ex accumulated other comprehensive income (1)	$	13.37		$	13.18		$	12.99		$	12.83		$	12.64		1	%	6	%

Performance Ratios:
Efficiency ratio	57.24		%	56.07		%	59.12		%	59.02		%	63.10		%	1.17		(5.86)
Pre-provision net revenue (PPNR) ROAA (1)	1.82		%	1.80		%	1.64		%	1.67		%	1.50		%	0.02		0.32
Return on average assets (ROAA)	1.04		%	1.09		%	1.04		%	1.21		%	1.13		%	(0.05)		(0.09)
Return on average common equity	13.50		%	12.99		%	12.20		%	13.62		%	12.90		%	0.51		0.60
Return on average tangible common equity (1)	13.53		%	13.02		%	12.23		%	13.66		%	12.94		%	0.51		0.59

Performance Ratios - Operating: (1)
Operating efficiency ratio (1)	52.01		%	51.72		%	58.27		%	62.02		%	59.61		%	0.29		(7.60)
Operating PPNR return on average assets (1)	2.10		%	2.12		%	1.66		%	1.43		%	1.58		%	(0.02)		0.52
Operating return on average assets (1)	1.24		%	1.33		%	1.06		%	1.03		%	1.23		%	(0.09)		0.01
Operating return on average common equity (1)	16.14		%	15.86		%	12.46		%	11.58		%	13.98		%	0.28		2.16
Operating return on average tangible common equity (1)	16.18		%	15.90		%	12.49		%	11.62		%	14.03		%	0.28		2.15

Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases	4.92		%	4.41		%	3.94		%	3.79		%	3.94		%	0.51		0.98
Yield on earning assets (2)	4.62		%	4.10		%	3.53		%	3.24		%	3.25		%	0.52		1.37
Cost of interest bearing deposits	0.77		%	0.23		%	0.11		%	0.10		%	0.11		%	0.54		0.66
Cost of interest bearing liabilities	1.05		%	0.39		%	0.20		%	0.18		%	0.18		%	0.66		0.87
Cost of total deposits	0.46		%	0.14		%	0.06		%	0.06		%	0.06		%	0.32		0.40
Cost of total funding (3)	0.65		%	0.23		%	0.12		%	0.11		%	0.11		%	0.42		0.54
Net interest margin (2)	4.01		%	3.88		%	3.41		%	3.14		%	3.15		%	0.13		0.86

Average interest bearing cash / Average interest earning assets	3.62		%	3.04		%	5.71		%	8.92		%	10.78		%	0.58		(7.16)
Average loans and leases / Average interest earning assets	85.32		%	84.54		%	80.91		%	76.85		%	74.70		%	0.78		10.62
Average loans and leases / Average total deposits	95.85		%	93.55		%	89.23		%	84.77		%	82.12		%	2.30		13.73
Average non-interest bearing deposits / Average total deposits	40.30		%	42.29		%	42.00		%	41.35		%	41.69		%	(1.99)		(1.39)
Average total deposits / Average total funding (3)	94.52		%	96.34		%	96.66		%	96.82		%	96.84		%	(1.82)		(2.32)

Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases	0.22		%	0.20		%	0.18		%	0.18		%	0.23		%	0.02		(0.01)
Non-performing assets to total assets	0.18		%	0.16		%	0.15		%	0.14		%	0.17		%	0.02		0.01
Allowance for credit losses to loans and leases	1.21		%	1.16		%	1.12		%	1.14		%	1.16		%	0.05		0.05
Total risk-based capital ratio (4)	13.7		%	13.2		%	13.5		%	14.0		%	14.3		%	0.50		(0.60)
Common equity tier 1 risk-based capital ratio (4)	11.0		%	10.7		%	11.0		%	11.4		%	11.6		%	0.30		(0.60)


Umpqua Holding Corporation
Financial Highlights
(Unaudited)
	Year Ended						% Change
	Dec 31, 2022			Dec 31, 2021			Year over Year
Per Common Share Data:
Dividends	$	0.84		$	0.84		—	%

Performance Ratios:
Efficiency ratio	57.83		%	59.53		%	(1.70)
Pre-provision net revenue (PPNR) ROAA (1)	1.73		%	1.70		%	0.03
Return on average assets (ROAA)	1.09		%	1.39		%	(0.30)
Return on average common equity	13.07		%	15.56		%	(2.49)
Return on average tangible common equity (1)	13.11		%	15.63		%	(2.52)

Performance Ratios - Operating: (1)
Operating efficiency ratio (1)	55.66		%	58.30		%	(2.64)
Operating PPNR return on average assets (1)	1.83		%	1.73		%	0.10
Operating return on average assets (1)	1.17		%	1.41		%	(0.24)
Operating return on average common equity (1)	13.97		%	15.86		%	(1.89)
Operating return on average tangible common equity (1)	14.00		%	15.93		%	(1.93)

Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases	4.29		%	3.99		%	0.30
Yield on earning assets (2)	3.88		%	3.33		%	0.55
Cost of interest bearing deposits	0.31		%	0.18		%	0.13
Cost of interest bearing liabilities	0.47		%	0.26		%	0.21
Cost of total deposits	0.18		%	0.10		%	0.08
Cost of total funding (3)	0.28		%	0.16		%	0.12
Net interest margin (2)	3.62		%	3.18		%	0.44

Average interest bearing cash / Average interest earning assets	5.28		%	10.15		%	(4.87)
Average loans and leases / Average interest earning assets	81.96		%	75.78		%	6.18
Average loans and leases / Average total deposits	90.91		%	83.77		%	7.14
Average non-interest bearing deposits / Average total deposits	41.48		%	40.76		%	0.72
Average total deposits / Average total funding (3)	96.06		%	96.25		%	(0.19)


Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)

	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 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	$	3,894,840		$	3,846,426		$	3,798,242		$	3,884,784		$	3,786,887		1	%	3	%
Owner occupied term, net	2,567,761			2,549,761			2,497,553			2,327,899			2,332,422			1	%	10	%
Multifamily, net	5,285,791			5,090,661			4,768,273			4,323,633			4,051,202			4	%	30	%
Construction & development, net	1,077,346			1,036,931			1,017,297			940,286			890,338			4	%	21	%
Residential development, net	200,838			205,935			194,909			195,308			206,990			(2)	%	(3)	%
Commercial:
Term, net (1)	3,029,547			3,003,424			2,904,861			2,772,206			3,008,473			1	%	1	%
Lines of credit & other, net	960,054			914,507			920,604			871,483			910,733			5	%	5	%
Leases & equipment finance, net	1,706,172			1,669,817			1,576,144			1,484,252			1,467,676			2	%	16	%
Residential:
Mortgage, net	5,647,035			5,470,624			5,168,457			4,748,266			4,517,266			3	%	25	%
Home equity loans & lines, net	1,631,965			1,565,094			1,415,722			1,250,702			1,197,170			4	%	36	%
Consumer & other, net	154,632			154,771			170,616			176,942			184,023			—	%	(16)	%
Total loans and leases, net of deferred fees and costs	$	26,155,981		$	25,507,951		$	24,432,678		$	22,975,761		$	22,553,180		3	%	16	%

(1)The Bank participated in the Paycheck 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	$	24,420		$	37,949		$	101,554		$	172,790		$	380,440		(36)	%	(94)	%

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


Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)

	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			% Change
(Dollars in thousands)	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	10,288,849		$	11,246,358		$	11,129,209		$	11,058,251		$	11,023,724		(9)	%	(7)	%
Demand, interest bearing	4,080,469			3,903,746			3,723,650			3,955,329			3,774,937			5	%	8	%
Money market	7,721,011			7,601,506			7,284,641			7,572,581			7,611,718			2	%	1	%
Savings	2,265,052			2,455,917			2,446,876			2,429,073			2,375,723			(8)	%	(5)	%
Time	2,710,231			1,609,580			1,548,047			1,684,353			1,808,583			68	%	50	%
Total	$	27,065,612		$	26,817,107		$	26,132,423		$	26,699,587		$	26,594,685		1	%	2	%

Total core deposits (1)	$	25,616,010		$	26,292,548		$	25,619,500		$	26,140,993		$	25,964,358		(3)	%	(1)	%

Deposit mix:
Demand, non-interest bearing	38		%	42		%	43		%	42		%	41		%
Demand, interest bearing	15		%	15		%	14		%	15		%	14		%
Money market	29		%	28		%	28		%	28		%	29		%
Savings	8		%	9		%	9		%	9		%	9		%
Time	10		%	6		%	6		%	6		%	7		%
Total	100		%	100		%	100		%	100		%	100		%

Number of open accounts:
Demand, non-interest bearing	430,568			434,347			434,436			428,915			428,181
Demand, interest bearing	57,391			56,698			57,145			63,800			66,010
Money market	55,222			55,712			56,430			56,783			57,222
Savings	157,216			159,008			159,709			160,267			160,449
Time	37,424			32,202			32,103			34,127			35,665
Total	737,821			737,967			739,823			743,892			747,527

Average balance per account:
Demand, non-interest bearing	$	23.9		$	25.9		$	25.6		$	25.8		$	25.7
Demand, interest bearing	71.1			68.9			65.2			62.0			57.2
Money market	139.8			136.4			129.1			133.4			133.0
Savings	14.4			15.4			15.3			15.2			14.8
Time	72.4			50.0			48.2			49.4			50.7
Total	$	36.7		$	36.3		$	35.3		$	35.9		$	35.6


	Umpqua Holdings Corporation
	Credit Quality – Non-performing Assets
	(Unaudited)

		Quarter Ended															% Change
(Dollars in thousands)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status
	Commercial real estate, net	$	5,011		$	5,403		$	5,514		$	5,950		$	5,767		(7)	%	(13)	%
	Commercial, net	25,691			18,652			12,645			12,415			13,098			38	%	96	%
	Residential, net	—			—			—			—			—			nm		nm
	Consumer & other, net	—			—			—			—			—			nm		nm
	Total loans and leases on non-accrual status	30,702			24,055			18,159			18,365			18,865			28	%	63	%
Loans and leases past due 90+ days and accruing (1)
	Commercial real estate, net	1			1			23			1			1			—	%	—	%
	Commercial, net	7,909			5,143			3,311			8			4,160			54	%	90	%
	Residential, net (1)	19,894			21,411			22,340			23,162			27,981			(7)	%	(29)	%
	Consumer & other, net	134			152			196			111			194			(12)	%	(31)	%
	Total loans and leases past due 90+ days and accruing (1)	27,938			26,707			25,870			23,282			32,336			5	%	(14)	%
Total non-performing loans and leases		58,640			50,762			44,029			41,647			51,201			16	%	15	%
Other real estate owned		203			—			1,868			1,868			1,868			nm		(89)	%
Total non-performing assets		$	58,843		$	50,762		$	45,897		$	43,515		$	53,069		16	%	11	%

Performing restructured loans and leases		$	6,767		$	7,076		$	7,631		$	8,405		$	6,694		(4)	%	1	%
Loans and leases past due 31-89 days		$	64,893		$	53,538		$	34,659		$	42,409		$	31,680		21	%	105	%
Loans and leases past due 31-89 days to total loans and leases		0.25		%	0.21		%	0.14		%	0.18		%	0.14		%	0.04		0.11
Non-performing loans and leases to total loans and leases (1)		0.22		%	0.20		%	0.18		%	0.18		%	0.23		%	0.02		(0.01)
Non-performing assets to total assets (1)		0.18		%	0.16		%	0.15		%	0.14		%	0.17		%	0.02		0.01



















	nm = not meaningful


Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Quarter Ended															% Change
(Dollars in thousands)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	283,065		$	261,111		$	248,564		$	248,412		$	257,560		8	%	10	%
Provision (recapture) for credit losses on loans and leases		30,580			28,542			18,787			5,696			(1,751)			7	%	nm
Charge-offs
	Commercial real estate, net	(128)			—			(8)			—			(58)			nm		121	%
	Commercial, net	(14,721)			(9,459)			(9,035)			(7,858)			(10,197)			56	%	44	%
	Residential, net	(53)			(4)			—			(167)			—			nm		nm
	Consumer & other, net	(906)			(929)			(836)			(885)			(675)			(2)	%	34	%
	Total charge-offs	(15,808)			(10,392)			(9,879)			(8,910)			(10,930)			52	%	45	%
Recoveries
	Commercial real estate, net	163			123			73			25			56			33	%	191	%
	Commercial, net	2,708			2,842			2,934			2,545			2,585			(5)	%	5	%
	Residential, net	24			249			216			173			326			(90)	%	(93)	%
	Consumer & other, net	403			590			416			623			566			(32)	%	(29)	%
	Total recoveries	3,298			3,804			3,639			3,366			3,533			(13)	%	(7)	%
Net (charge-offs) recoveries
	Commercial real estate, net	35			123			65			25			(2)			(72)	%	nm
	Commercial, net	(12,013)			(6,617)			(6,101)			(5,313)			(7,612)			82	%	58	%
	Residential, net	(29)			245			216			6			326			(112)	%	(109)	%
	Consumer & other, net	(503)			(339)			(420)			(262)			(109)			48	%	361	%
	Total charge-offs	(12,510)			(6,588)			(6,240)			(5,544)			(7,397)			90	%	69	%
Balance, end of period		$	301,135		$	283,065		$	261,111		$	248,564		$	248,412		6	%	21	%
Reserve for unfunded commitments
Balance, beginning of period		$	11,853		$	12,823		$	12,918		$	12,767		$	11,752		(8)	%	1	%
Provision (recapture) for credit losses on unfunded commitments		2,368			(970)			(95)			151			1,015			nm		133	%
Balance, end of period		14,221			11,853			12,823			12,918			12,767			20	%	11	%
Total Allowance for credit losses (ACL)		$	315,356		$	294,918		$	273,934		$	261,482		$	261,179		7	%	21	%

Net charge-offs to average loans and leases (annualized)		0.19		%	0.11		%	0.11		%	0.10		%	0.13		%	0.08		0.06
Recoveries to gross charge-offs		20.86		%	36.61		%	36.84		%	37.78		%	32.32		%	(15.75)		(11.46)
ACLLL to loans and leases		1.15		%	1.11		%	1.07		%	1.08		%	1.10		%	0.04		0.05
ACL to loans and leases		1.21		%	1.16		%	1.12		%	1.14		%	1.16		%	0.05		0.05


Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Year Ended						% Change
(Dollars in thousands)		Dec 31, 2022			Dec 31, 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		83,605			(35,132)			nm
Charge-offs
	Commercial real estate, net	(136)			(1,144)			(88)	%
	Commercial, net	(41,073)			(54,425)			(25)	%
	Residential, net	(224)			(70)			220	%
	Consumer & other, net	(3,556)			(3,658)			(3)	%
	Total charge-offs	(44,989)			(59,297)			(24)	%
Recoveries
	Commercial real estate, net	384			645			(40)	%
	Commercial, net	11,029			10,703			3	%
	Residential, net	662			924			(28)	%
	Consumer & other, net	2,032			2,168			(6)	%
	Total recoveries	14,107			14,440			(2)	%
Net (charge-offs) recoveries
	Commercial real estate, net	248			(499)			nm
	Commercial, net	(30,044)			(43,722)			(31)	%
	Residential, net	438			854			(49)	%
	Consumer & other, net	(1,524)			(1,490)			2	%
	Total charge-offs	(30,882)			(44,857)			(31)	%
Balance, end of period		$	301,135		$	248,412		21	%
Reserve for unfunded commitments
Balance, beginning of period		$	12,767		$	20,286		(37)	%

Provision (recapture) for credit losses on unfunded commitments		1,454			(7,519)			nm
Balance, end of period		14,221			12,767			11	%
Total Allowance for credit losses (ACL)		$	315,356		$	261,179		21	%

Net charge-offs to average loans and leases		0.13		%	0.20		%	(0.07)
Recoveries to gross charge-offs		31.36		%	24.35		%	7.01
nm = not meaningful


Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
	Quarter Ended
	December 31, 2022						September 30, 2022						December 31, 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	$	110,850	$	1,603	5.79	%	$	173,397	$	2,205	5.09	%	$	366,043	$	2,907	3.18	%
Loans and leases (1)	25,855,556		320,747		4.92	%	24,886,203		276,625		4.41	%	22,098,818		218,594		3.94	%
Taxable securities	3,042,044		18,290		2.40	%	3,271,185		18,261		2.23	%	3,681,650		16,668		1.81	%
Non-taxable securities (2)	200,825		1,571		3.13	%	212,847		1,651		3.10	%	247,183		1,831		2.96	%
Temporary investments and interest-bearing cash	1,095,854		10,319		3.74	%	893,471		5,115		2.27	%	3,190,380		1,229		0.15	%
Total interest-earning assets	30,305,129		$	352,530	4.62	%	29,437,103		$	303,857	4.10	%	29,584,074		$	241,229	3.25	%
Other assets	1,332,361						1,231,074						1,302,304
Total assets	$	31,637,490					$	30,668,177					$	30,886,378
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	4,005,643	$	5,372	0.53	%	$	3,829,688	$	1,705	0.18	%	$	3,765,212	$	524	0.06	%
Money market deposits	7,651,974		17,473		0.91	%	7,550,791		5,817		0.31	%	7,717,844		1,448		0.07	%
Savings deposits	2,345,564		226		0.04	%	2,468,187		250		0.04	%	2,342,865		206		0.03	%
Time deposits	2,100,803		8,103		1.53	%	1,501,724		1,318		0.35	%	1,864,949		2,179		0.46	%
Total interest-bearing deposits	16,103,984		31,174		0.77	%	15,350,390		9,090		0.23	%	15,690,870		4,357		0.11	%
Repurchase agreements and federal funds purchased	354,624		323		0.36	%	509,559		545		0.42	%	484,891		48		0.04	%
Borrowings	796,414		8,023		4.00	%	90,475		798		3.50	%	6,353		51		3.19	%
Junior subordinated debentures	413,708		7,248		6.95	%	409,151		5,491		5.33	%	387,471		3,019		3.09	%
Total interest-bearing liabilities	17,668,730		$	46,768	1.05	%	16,359,575		$	15,924	0.39	%	16,569,585		$	7,475	0.18	%
Non-interest-bearing deposits	10,870,842						11,250,764						11,219,766
Other liabilities	659,279						490,572						379,274
Total liabilities	29,198,851						28,100,911						28,168,625
Common equity	2,438,639						2,567,266						2,717,753
Total liabilities and shareholders' equity	$	31,637,490					$	30,668,177					$	30,886,378
NET INTEREST INCOME			$	305,762					$	287,933					$	233,754
NET INTEREST SPREAD					3.57	%					3.71	%					3.07	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					4.01	%					3.88	%					3.15	%


Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
	Year Ended
	December 31, 2022						December 31, 2021
(Dollars in thousands)	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	$	208,141	$	8,812	4.23	%	$	500,070	$	15,149	3.03	%
Loans and leases (1)	24,225,518		1,041,446		4.29	%	21,925,108		875,366		3.99	%
Taxable securities	3,343,721		72,702		2.17	%	3,321,142		61,717		1.86	%
Non-taxable securities (2)	216,943		6,669		3.07	%	248,256		7,458		3.00	%
Temporary investments and interest-bearing cash	1,561,808		19,706		1.26	%	2,936,273		3,864		0.13	%
Total interest-earning assets	29,556,131		$	1,149,335	3.88	%	28,930,849		$	963,554	3.33	%
Other assets	1,261,265						1,336,523
Total assets	$	30,817,396					$	30,267,372
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	3,886,390	$	8,185	0.21	%	$	3,462,035	$	1,865	0.05	%
Money market deposits	7,552,666		26,415		0.35	%	7,624,707		5,964		0.08	%
Savings deposits	2,411,448		880		0.04	%	2,200,608		729		0.03	%
Time deposits	1,743,988		12,715		0.73	%	2,217,464		18,593		0.84	%
Total interest-bearing deposits	15,594,492		48,195		0.31	%	15,504,814		27,151		0.18	%
Repurchase agreements and federal funds purchased	465,600		997		0.21	%	454,994		280		0.06	%
Borrowings	226,665		8,920		3.94	%	195,985		2,838		1.45	%
Junior subordinated debentures	399,568		19,889		4.98	%	369,259		12,127		3.28	%
Total interest-bearing liabilities	16,686,325		$	78,001	0.47	%	16,525,052		$	42,396	0.26	%
Non-interest-bearing deposits	11,053,921						10,669,531
Other liabilities	501,573						372,078
Total liabilities	28,241,819						27,566,661
Common equity	2,575,577						2,700,711
Total liabilities and shareholders' equity	$	30,817,396					$	30,267,372
NET INTEREST INCOME			$	1,071,334					$	921,158
NET INTEREST SPREAD					3.41	%					3.07	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.62	%					3.18	%


Umpqua Holdings Corporation Segments
(Unaudited)
Core Banking		Quarter Ended															% Change
(Dollars in thousands)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Net interest income		$	305,030		$	286,532		$	247,009		$	227,087		$	231,250		6	%	32	%
Provision (recapture) for credit losses		32,948			27,572			18,692			4,804			(736)			19	%	nm
Non-interest income






	Gain on sale of debt securities, net	—			—			—			2			4			nm		(100)	%
	Gain (loss) on equity securities, net	284			(2,647)			(2,075)			(2,661)			(466)			nm		nm
	(Loss) gain on swap derivatives, net	(2,329)			4,194			7,337			7,047			(303)			(156)	%	nm
	Change in fair value of certain loans held for investment	4,192			(26,397)			(15,210)			(21,049)			(2,672)			nm		nm
	Non-interest income (excluding above items)	34,362			36,769			34,461			35,650			42,812			(7)	%	(20)	%
	Total non-interest income	36,509			11,919			24,513			18,989			39,375			206	%	(7)	%
Non-interest expense
	Merger related expenses	11,637			769			2,672			2,278			15,183			nm		(23)	%
	Exit and disposal costs	1,966			1,364			442			3,033			3,022			44	%	(35)	%
	Non-interest expense (excluding above items)	167,267			154,320			148,946			148,423			150,587			8	%	11	%
	Allocated expenses, net (1)	(1,905)			(39)			3,702			3,735			4,314			nm		(144)	%
	Total non-interest expense	178,965			156,414			155,762			157,469			173,106			14	%	3	%
Income before income taxes		129,626			114,465			97,068			83,803			98,255			13	%	32	%
Provision for income taxes		33,763			28,212			24,530			20,917			24,067			20	%	40	%
Net income		$	95,863		$	86,253		$	72,538		$	62,886		$	74,188		11	%	29	%

Effective Tax Rate		26		%	25		%	25		%	25		%	24		%
Efficiency Ratio		52		%	52		%	57		%	64		%	64		%

Total assets		$	31,577,603		$	31,100,700		$	29,721,590		$	30,153,079		$	30,155,058		2	%	5	%

Total loans and leases		$	26,155,981		$	25,507,951		$	24,432,678		$	22,975,761		$	22,553,180		3	%	16	%
Total deposits		$	26,937,431		$	26,588,217		$	25,925,294		$	26,479,078		$	26,370,568		1	%	2	%

Key Rates, end of period:
10 year CMT		3.88		%	3.83		%	2.98		%	2.32		%	1.52		%	0.05		2.36
FHLMC 30 year fixed		6.42		%	6.70		%	5.70		%	4.67		%	3.11		%	(0.28)		3.31
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)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Net interest income		$	449		$	1,072		$	1,161		$	1,676		$	2,129		(58)	%	(79)	%
Provision for credit losses		—			—			—			—			—			nm		nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	4,252			10,515			15,101			16,844			23,624			(60)	%	(82)	%
	Servicing	9,184			9,529			9,505			9,140			9,457			(4)	%	(3)	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	(4,986)			(4,978)			(4,961)			(5,347)			(5,311)			—	%	(6)	%
	Changes due to valuation inputs or assumptions	(9,914)			16,403			10,899			40,149			15,415			(160)	%	(164)	%
	MSR hedge loss	(348)			(14,128)			—			—			—			(98)	%	nm
	Non-interest income (excluding above items)	182			185			178			194			178			(2)	%	2	%
	Total non-interest income	(1,630)			17,526			30,722			60,980			43,363			(109)	%	(104)	%
Non-interest expense
	Non-interest expense	14,112			21,511			27,514			28,696			30,919			(34)	%	(54)	%
	Allocated expenses, net (1)	1,905			39			(3,702)			(3,735)			(4,314)			nm		nm
	Total non-interest expense	16,017			21,550			23,812			24,961			26,605			(26)	%	(40)	%
Income before income taxes		(17,198)			(2,952)			8,071			37,695			18,887			483	%	(191)	%
Provision for income taxes		(4,299)			(739)			2,018			9,424			4,721			482	%	(191)	%
Net income		$	(12,899)		$	(2,213)		$	6,053		$	28,271		$	14,166		483	%	(191)	%

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

Total assets		$	271,036		$	371,260		$	414,104		$	484,047		$	485,878		(27)	%	(44)	%
Loans held for sale		$	71,647		$	148,275		$	228,889		$	309,946		$	353,105		(52)	%	(80)	%

Total deposits		$	128,181		$	228,890		$	207,129		$	220,509		$	224,117		(44)	%	(43)	%

LHFS Production Statistics:
Closed loan volume for-sale		$	216,833		$	396,979		$	576,532		$	649,122		$	871,268		(45)	%	(75)	%
Gain on sale margin		1.96		%	2.65		%	2.62		%	2.59		%	2.71		%

Direct LHFS expense		$	7,292		$	10,465		$	13,197		$	14,296		$	18,150		(30)	%	(60)	%
Direct LHFS expenses as % of volume		3.36		%	2.64		%	2.29		%	2.20		%	2.08		%

MSR Statistics:
Residential mortgage loans serviced for others		$	13,020,189		$	12,997,911		$	12,932,747		$	12,810,574		$	12,755,671		—	%	2	%
MSR, net		$	185,017		$	196,177		$	179,558		$	165,807		$	123,615		(6)	%	50	%
MSR as % of serviced portfolio		1.42		%	1.51		%	1.39		%	1.29		%	0.97		%	(0.09)		0.45

Key Rates, end of period:
10 year CMT		3.88		%	3.83		%	2.98		%	2.32		%	1.52		%	0.05		2.36
FHLMC 30 year fixed		6.42		%	6.70		%	5.70		%	4.67		%	3.11		%	(0.28)		3.31
nm = not meaningful


Umpqua Holdings Corporation Segments
(Unaudited)
		Core Banking								Mortgage Banking
		Year Ended						% Change		Year Ended						% Change
(Dollars in thousands)		Dec 31, 2022			Dec 31, 2021			Year over Year		Dec 31, 2022			Dec 31, 2021			Year over Year
Net interest income		$	1,065,658		$	908,087		17	%	$	4,358		$	11,560		(62)	%
Provision (recapture) for credit losses		84,016			(42,651)			nm		—			—			nm
Non-interest income
	Residential mortgage banking revenue:
	Origination and sale	—			—			nm		46,712			157,789			(70)	%
	Servicing	—			—			nm		37,358			36,836			1	%
	Change in fair value of MSR asset:
	Changes due to collection/realization of expected cash flows over time	—			—			nm		(20,272)			(18,903)			7	%
	Changes due to valuation inputs or assumptions	—			—			nm		57,537			11,089			419	%
	MSR hedge loss	—			—			nm		(14,476)			—			nm
	Gain on sale of debt securities, net	2			8			(75)	%	—			—			nm
	Loss on equity securities, net	(7,099)			(1,511)			370	%	—			—			nm
	Gain on swap derivatives, net	16,249			8,395			94	%	—			—			nm
	Change in fair value of certain loans held for investment	(58,464)			3,032			nm		—			—			nm
	Non-interest income (excluding above items)	141,242			158,725			(11)	%	739			858			(14)	%
	Total non-interest income	91,930			168,649			(45)	%	107,598			187,669			(43)	%
Non-interest expense

	Merger related expenses	17,356			15,183			14	%	—			—			nm
	Exit and disposal costs	6,805			12,763			(47)	%	—			—			nm
	Non-interest expense (excluding above items)	618,956			589,556			5	%	91,833			142,954			(36)	%
	Allocated expenses, net (1)	5,493			8,174			(33)	%	(5,493)			(8,174)			(33)	%
	Total non-interest expense	648,610			625,676			4	%	86,340			134,780			(36)	%
Income before income taxes		424,962			493,711			(14)	%	25,616			64,449			(60)	%
Provision for income taxes		107,422			121,748			(12)	%	6,404			16,112			(60)	%
Net income		$	317,540		$	371,963		(15)	%	$	19,212		$	48,337		(60)	%

Effective Tax Rate		25		%	25		%	—		25		%	25		%	—
Efficiency Ratio		56		%	58		%	(2.00)		77		%	68		%	9.00

LHFS Production Statistics:
Closed loan volume for-sale										$	1,839,466		$	4,747,104		(61)	%
Gain on sale margin										2.54		%	3.32		%	(0.78)
Direct LHFS expense										$	45,250		$	94,718		(52)	%
Direct LHFS expenses as % of volume										2.46		%	2.00		%	0.46
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)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Total shareholders' equity	a	$	2,479,826		$	2,417,514		$	2,518,276		$	2,607,598		$	2,749,270		3	%	(10)	%

Less: Other intangible assets, net		4,745			5,764			6,789			7,815			8,840			(18)	%	(46)	%
Tangible common shareholders' equity	b	$	2,475,081		$	2,411,750		$	2,511,487		$	2,599,783		$	2,740,430		3	%	(10)	%
Less: Accumulated other comprehensive income (AOCI)		$	(426,864)		(449,560)			(308,147)			(183,756)			1,759			(5)	%	nm
Tangible common shareholders' equity, ex AOCI	c	$	2,901,945		$	2,861,310		$	2,819,634		$	2,783,539		$	2,738,671		1	%	6	%

Total assets	d	$	31,848,639		$	31,471,960		$	30,135,694		$	30,637,126		$	30,640,936		1	%	4	%

Less: Other intangible assets, net		4,745			5,764			6,789			7,815			8,840			(18)	%	(46)	%
Tangible assets	e	$	31,843,894		$	31,466,196		$	30,128,905		$	30,629,311		$	30,632,096		1	%	4	%
Common shares outstanding at period end	f	217,054			217,053			217,049			216,967			216,626			—	%	—	%

Total shareholders' equity to total assets ratio	a / d	7.79		%	7.68		%	8.36		%	8.51		%	8.97		%	0.11		(1.18)
Tangible common equity ratio	b / e	7.77		%	7.66		%	8.34		%	8.49		%	8.95		%	0.11		(1.18)
Tangible common equity ratio, ex AOCI	c / e	9.11		%	9.09		%	9.36		%	9.09		%	8.94		%	0.02		0.17
Book value per common share	a / f	$	11.42		$	11.14		$	11.60		$	12.02		$	12.69		3	%	(10)	%
Tangible book value per common share	b / f	$	11.40		$	11.11		$	11.57		$	11.98		$	12.65		3	%	(10)	%
Tangible book value per common share, ex AOCI	c / f	$	13.37		$	13.18		$	12.99		$	12.83		$	12.64		1	%	6	%
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Quarter Ended										% Change
(Dollars in thousands)		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	—	$	—	$	—	$	2	$	4	nm		(100)	%
Gain (loss) on equity securities, net		284		(2,647)		(2,075)		(2,661)		(466)		nm		nm
(Loss) gain on swap derivatives		(2,329)		4,194		7,337		7,047		(303)		(156)	%	nm
Change in fair value of certain loans held for investment		4,192		(26,397)		(15,210)		(21,049)		(2,672)		nm		nm
Change in fair value of MSR due to valuation inputs or assumptions		(9,914)		16,403		10,899		40,149		15,415		(160)	%	(164)	%
MSR hedge loss		(348)		(14,128)		—		—		—		(98)	%	nm
Total non-interest income adjustments	a	$	(8,115)	$	(22,575)	$	951	$	23,488	$	11,978	(64)	%	(168)	%

Non-Interest Expense Adjustments
Merger related expenses		$	11,637	$	769	$	2,672	$	2,278	$	15,183	nm		(23)	%
Exit and disposal costs		1,966		1,364		442		3,033		3,022		44	%	(35)	%
Total non-interest expense adjustments	b	$	13,603	$	2,133	$	3,114	$	5,311	$	18,205	nm		(25)	%

Net interest income (1)	c	$	305,762	$	287,933	$	248,522	$	229,117	$	233,754	6	%	31	%

Non-interest income (GAAP)	d	$	34,879	$	29,445	$	55,235	$	79,969	$	82,738	18	%	(58)	%
Less: Non-interest income adjustments	a	8,115		22,575		(951)		(23,488)		(11,978)		(64)	%	nm
Operating non-interest income (non-GAAP)	e	$	42,994	$	52,020	$	54,284	$	56,481	$	70,760	(17)	%	(39)	%

Revenue (GAAP) (1)	f=c+d	$	340,641	$	317,378	$	303,757	$	309,086	$	316,492	7	%	8	%
Operating revenue (non-GAAP) (1)	g=c+e	$	348,756	$	339,953	$	302,806	$	285,598	$	304,514	3	%	15	%

Non-interest expense (GAAP)	h	$	194,982	$	177,964	$	179,574	$	182,430	$	199,711	10	%	(2)	%
Less: Non-interest expense adjustments	b	(13,603)		(2,133)		(3,114)		(5,311)		(18,205)		nm		(25)	%
Operating non-interest expense (non-GAAP)	i	$	181,379	$	175,831	$	176,460	$	177,119	$	181,506	3	%	—	%

Net income (GAAP)	j	$	82,964	$	84,040	$	78,591	$	91,157	$	88,354	(1)	%	(6)	%
Provision for income taxes		29,464		27,473		26,548		30,341		28,788		7	%	2	%
Income before provision for income taxes		112,428		111,513		105,139		121,498		117,142		1	%	(4)	%
Provision (recapture) for credit losses		32,948		27,572		18,692		4,804		(736)		19	%	nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	145,376		139,085		123,831		126,302		116,406		5	%	25	%
Less: Non-interest income adjustments	a	8,115		22,575		(951)		(23,488)		(11,978)		(64)	%	nm
Add: Non-interest expense adjustments	b	13,603		2,133		3,114		5,311		18,205		nm		(25)	%
Operating PPNR (non-GAAP)	l	$	167,094	$	163,793	$	125,994	$	108,125	$	122,633	2	%	36	%

Net income (GAAP)	j	$	82,964	$	84,040	$	78,591	$	91,157	$	88,354	(1)	%	(6)	%
Less: Non-interest income adjustments	a	8,115		22,575		(951)		(23,488)		(11,978)		(64)	%	nm
Add: Non-interest expense adjustments	b	13,603		2,133		3,114		5,311		18,205		nm		(25)	%
Tax effect of adjustments		(5,459)		(6,116)		(480)		4,576		1,190		(11)	%	nm
Operating net income (non-GAAP)	m	$	99,223	$	102,632	$	80,274	$	77,556	$	95,771	(3)	%	4	%
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Quarter Ended															% Change
(Dollars in thousands, except per share data)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Average assets	n	$	31,637,490		$	30,668,177		$	30,356,903		$	30,597,413		$	30,886,378		3	%	2	%
Less: Average goodwill and other intangible assets, net		5,298			6,343			7,379			8,407			9,491			(16)	%	(44)	%
Average tangible assets	o	$	31,632,192		$	30,661,834		$	30,349,524		$	30,589,006		$	30,876,887		3	%	2	%

Average common shareholders' equity	p	$	2,438,639		$	2,567,266		$	2,584,836		$	2,715,059		$	2,717,753		(5)	%	(10)	%
Less: Average goodwill and other intangible assets, net		5,298			6,343			7,379			8,407			9,491			(16)	%	(44)	%
Average tangible common equity	q	$	2,433,341		$	2,560,923		$	2,577,457		$	2,706,652		$	2,708,262		(5)	%	(10)	%

Weighted average basic shares outstanding	r	217,054			217,051			217,030			216,782			216,624			—	%	—	%
Weighted average diluted shares outstanding	s	217,566			217,386			217,279			217,392			217,356			—	%	—	%

Select Per-Share & Performance Metrics
Earnings-per-share - basic	j / r	$	0.38		$	0.39		$	0.36		$	0.42		$	0.41		(3)	%	(7)	%
Earnings-per-share - diluted	j / s	$	0.38		$	0.39		$	0.36		$	0.42		$	0.41		(3)	%	(7)	%
Efficiency ratio	h / f	57.24		%	56.07		%	59.12		%	59.02		%	63.10		%	1.17		(5.86)
PPNR return on average assets	k / n	1.82		%	1.80		%	1.64		%	1.67		%	1.50		%	0.02		0.32
Return on average assets	j / n	1.04		%	1.09		%	1.04		%	1.21		%	1.13		%	(0.05)		(0.09)
Return on average tangible assets	j / o	1.04		%	1.09		%	1.04		%	1.21		%	1.14		%	(0.05)		(0.10)
Return on average common equity	j / p	13.50		%	12.99		%	12.20		%	13.62		%	12.90		%	0.51		0.60
Return on average tangible common equity	j / q	13.53		%	13.02		%	12.23		%	13.66		%	12.94		%	0.51		0.59

Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic	m / r	$	0.46		$	0.47		$	0.37		$	0.36		$	0.44		(2)	%	5	%
Operating earnings-per-share - diluted	m / s	$	0.46		$	0.47		$	0.37		$	0.36		$	0.44		(2)	%	5	%
Operating efficiency ratio	i / g	52.01		%	51.72		%	58.27		%	62.02		%	59.61		%	0.29		(7.60)
Operating PPNR return on average assets	l / n	2.10		%	2.12		%	1.66		%	1.43		%	1.58		%	(0.02)		0.52
Operating return on average assets	m / n	1.24		%	1.33		%	1.06		%	1.03		%	1.23		%	(0.09)		0.01
Operating return on average tangible assets	m / o	1.24		%	1.33		%	1.06		%	1.03		%	1.23		%	(0.09)		0.01
Operating return on average common equity	m / p	16.14		%	15.86		%	12.46		%	11.58		%	13.98		%	0.28		2.16
Operating return on average tangible common equity	m / q	16.18		%	15.90		%	12.49		%	11.62		%	14.03		%	0.28		2.15


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Core Banking		Quarter Ended															% Change
(Dollars in thousands)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	—		$	—		$	—		$	2		$	4		nm		(100)	%
Gain (loss) on equity securities, net		284			(2,647)			(2,075)			(2,661)			(466)			nm		nm
(Loss) gain on swap derivatives		(2,329)			4,194			7,337			7,047			(303)			(156)	%	nm
Change in fair value of certain loans held for investment		4,192			(26,397)			(15,210)			(21,049)			(2,672)			nm		nm
Total non-interest income adjustments	a	$	2,147		$	(24,850)		$	(9,948)		$	(16,661)		$	(3,437)		nm		nm

Non-Interest Expense Adjustments
Merger related expenses		$	11,637		$	769		$	2,672		$	2,278		$	15,183		nm		(23)	%
Exit and disposal costs		1,966			1,364			442			3,033			3,022			44	%	(35)	%
Total non-interest expense adjustments	b	$	13,603		$	2,133		$	3,114		$	5,311		$	18,205		nm		(25)	%

Net interest income (1)	c	$	305,313		$	286,861		$	247,361		$	227,441		$	231,625		6	%	32	%

Non-interest income (GAAP)	d	$	36,509		$	11,919		$	24,513		$	18,989		$	39,375		206	%	(7)	%
Less: Non-interest income adjustments	a	(2,147)			24,850			9,948			16,661			3,437			(109)	%	(162)	%
Operating non-interest income (non-GAAP)	e	$	34,362		$	36,769		$	34,461		$	35,650		$	42,812		(7)	%	(20)	%

Revenue (GAAP) (1)	f=c+d	$	341,822		$	298,780		$	271,874		$	246,430		$	271,000		14	%	26	%
Operating revenue (non-GAAP) (1)	g=c+e	$	339,675		$	323,630		$	281,822		$	263,091		$	274,437		5	%	24	%

Non-interest expense (GAAP) (2)	h	$	178,965		$	156,414		$	155,762		$	157,469		$	173,106		14	%	3	%
Less: Non-interest expense adjustments	b	(13,603)			(2,133)			(3,114)			(5,311)			(18,205)			nm		(25)	%
Operating non-interest expense (non-GAAP)	i	$	165,362		$	154,281		$	152,648		$	152,158		$	154,901		7	%	7	%

Net income (GAAP)	j	$	95,863		$	86,253		$	72,538		$	62,886		$	74,188		11	%	29	%
Provision for income taxes		33,763			28,212			24,530			20,917			24,067			20	%	40	%
Income before provision for income taxes		129,626			114,465			97,068			83,803			98,255			13	%	32	%
Provision (recapture) for credit losses		32,948			27,572			18,692			4,804			(736)			19	%	nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	162,574			142,037			115,760			88,607			97,519			14	%	67	%
Less: Non-interest income adjustments	a	(2,147)			24,850			9,948			16,661			3,437			(109)	%	(162)	%
Add: Non-interest expense adjustments	b	13,603			2,133			3,114			5,311			18,205			nm		(25)	%
Operating PPNR (non-GAAP)	l	$	174,030		$	169,020		$	128,822		$	110,579		$	119,161		3	%	46	%

Net income (GAAP)	j	$	95,863		$	86,253		$	72,538		$	62,886		$	74,188		11	%	29	%
Less: Non-interest income adjustments	a	(2,147)			24,850			9,948			16,661			3,437			(109)	%	(162)	%
Add: Non-interest expense adjustments	b	13,603			2,133			3,114			5,311			18,205			nm		(25)	%
Tax effect of adjustments		(2,893)			(6,685)			(3,205)			(5,461)			(2,664)			(57)	%	9	%
Operating net income (non-GAAP)	m	$	104,426		$	106,551		$	82,395		$	79,397		$	93,166		(2)	%	12	%

Efficiency ratio	h / f	52.36		%	52.35		%	57.29		%	63.90		%	63.88		%	0.01		(11.52)
Operating efficiency ratio	i / g	48.68		%	47.67		%	54.16		%	57.83		%	56.44		%	1.01		(7.76)
Core Banking net income / Consolidated net income		115.55		%	102.63		%	92.30		%	68.99		%	83.97		%	12.92		31.58
Core Banking operating net income / Consolidated operating net income		105.24		%	103.82		%	102.64		%	102.37		%	97.28		%	1.42		7.96
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Mortgage Banking		Quarter Ended															% Change
(Dollars in thousands)		Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Change in fair value of MSR due to valuation inputs or assumptions		$	(9,914)		$	16,403		$	10,899		$	40,149		$	15,415		(160)	%	(164)	%
MSR hedge loss		(348)			(14,128)			—			—			—			(98)	%	nm
Total non-interest income adjustments	a	$	(10,262)		$	2,275		$	10,899		$	40,149		$	15,415		nm		(167)	%

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

Net interest income	c	$	449		$	1,072		$	1,161		$	1,676		$	2,129		(58)	%	(79)	%

Non-interest income (GAAP)	d	$	(1,630)		$	17,526		$	30,722		$	60,980		$	43,363		(109)	%	(104)	%
Less: Non-interest income adjustments	a	10,262			(2,275)			(10,899)			(40,149)			(15,415)			nm		nm
Operating non-interest income (non-GAAP)	e	$	8,632		$	15,251		$	19,823		$	20,831		$	27,948		(43)	%	(69)	%

Revenue (GAAP)	f=c+d	$	(1,181)		$	18,598		$	31,883		$	62,656		$	45,492		(106)	%	(103)	%
Operating revenue (non-GAAP)	g=c+e	$	9,081		$	16,323		$	20,984		$	22,507		$	30,077		(44)	%	(70)	%

Non-interest expense (GAAP) (1)	h	$	16,017		$	21,550		$	23,812		$	24,961		$	26,605		(26)	%	(40)	%
Less: Non-interest expense adjustments	b	—			—			—			—			—			nm		nm
Operating non-interest expense (non-GAAP)	i	$	16,017		$	21,550		$	23,812		$	24,961		$	26,605		(26)	%	(40)	%

Net income (GAAP)	j	$	(12,899)		$	(2,213)		$	6,053		$	28,271		$	14,166		483	%	(191)	%
Provision for income taxes		(4,299)			(739)			2,018			9,424			4,721			482	%	(191)	%
Income before provision for income taxes		(17,198)			(2,952)			8,071			37,695			18,887			483	%	(191)	%
Provision for credit losses		—			—			—			—			—			nm		nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	(17,198)			(2,952)			8,071			37,695			18,887			483	%	(191)	%
Less: Non-interest income adjustments	a	10,262			(2,275)			(10,899)			(40,149)			(15,415)			nm		nm
Add: Non-interest expense adjustments	b	—			—			—			—			—			nm		nm
Operating PPNR (non-GAAP)	l	$	(6,936)		$	(5,227)		$	(2,828)		$	(2,454)		$	3,472		33	%	(300)	%

Net income (GAAP)	j	$	(12,899)		$	(2,213)		$	6,053		$	28,271		$	14,166		483	%	(191)	%
Less: Non-interest income adjustments	a	10,262			(2,275)			(10,899)			(40,149)			(15,415)			nm		nm
Add: Non-interest expense adjustments	b	—			—			—			—			—			nm		nm
Tax effect of adjustments		(2,566)			569			2,725			10,037			3,854			nm		(167)	%
Operating net income (non-GAAP)	m	$	(5,203)		$	(3,919)		$	(2,121)		$	(1,841)		$	2,605		33	%	(300)	%

Efficiency ratio	h / f	nm			115.87		%	74.69		%	39.84		%	58.48		%	nm		nm
Operating efficiency ratio	i / g	176.38		%	132.02		%	113.48		%	110.90		%	88.46		%	34	%	99	%
Mortgage Banking net income / Consolidated net income		(15.55)		%	(2.63)		%	7.70		%	31.01		%	16.03		%	(12.92)		(31.58)
Mortgage Banking operating net income / Consolidated operating net income		(5.24)		%	(3.82)		%	(2.64)		%	(2.37)		%	2.72		%	(1.42)		(7.96)
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Year to Date				% Change
(Dollars in thousands)		Dec 31, 2022		Dec 31, 2021		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	2	$	8	(75)	%
Loss on equity securities, net		(7,099)		(1,511)		370	%
Gain on swap derivatives		16,249		8,395		94	%
Change in fair value of certain loans held for investment		(58,464)		3,032		nm
Change in fair value of MSR due to valuation inputs or assumptions		57,537		11,089		419	%
MSR hedge loss		(14,476)		—		nm
Total non-interest income adjustments	a	$	(6,251)	$	21,013	(130)	%

Non-Interest Expense Adjustments
Merger related expenses		$	17,356	$	15,183	14	%
Exit and disposal costs		6,805		12,763		(47)	%
Total non-interest expense adjustments	b	$	24,161	$	27,946	(14)	%

Net interest income (1)	c	$	1,071,334	$	921,158	16	%

Non-interest income (GAAP)	d	$	199,528	$	356,318	(44)	%
Less: Non-interest income adjustments	a	6,251		(21,013)		nm
Operating non-interest income (non-GAAP)	e	$	205,779	$	335,305	(39)	%

Revenue (GAAP) (1)	f=c+d	$	1,270,862	$	1,277,476	(1)	%
Operating revenue (non-GAAP) (1)	g=c+e	$	1,277,113	$	1,256,463	2	%

Non-interest expense (GAAP)	h	$	734,950	$	760,456	(3)	%
Less: Non-interest expense adjustments	b	(24,161)		(27,946)		(14)	%
Operating non-interest expense (non-GAAP)	i	$	710,789	$	732,510	(3)	%

Net income (GAAP)	j	$	336,752	$	420,300	(20)	%
Provision for income taxes		113,826		137,860		(17)	%
Income before provision for income taxes		450,578		558,160		(19)	%
Provision (recapture) for credit losses		84,016		(42,651)		nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	534,594		515,509		4	%
Less: Non-interest income adjustments	a	6,251		(21,013)		nm
Add: Non-interest expense adjustments	b	24,161		27,946		(14)	%
Operating PPNR (non-GAAP)	l	$	565,006	$	522,442	8	%

Net income (GAAP)	j	$	336,752	$	420,300	(20)	%
Less: Non-interest income adjustments	a	6,251		(21,013)		nm
Add: Non-interest expense adjustments	b	24,161		27,946		(14)	%
Tax effect of adjustments		(7,479)		1,014		nm
Operating net income (non-GAAP)	m	$	359,685	$	428,247	(16)	%
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Consolidated		Year to Date						% Change
(Dollars in thousands)		Dec 31, 2022			Dec 31, 2021			Year over Year
Average assets	n	$	30,817,396		$	30,267,372		2	%
Less: Average goodwill and other intangible assets, net		$	6,847		$	12,057		(43)	%
Average tangible assets	o	$	30,810,549		$	30,255,315		2	%

Average common shareholders' equity	p	$	2,575,577		$	2,700,711		(5)	%
Less: Average goodwill and other intangible assets, net		$	6,847		$	12,057		(43)	%
Average tangible common equity	q	$	2,568,730		$	2,688,654		(4)	%

Weighted average basic shares outstanding	r	216,980			219,032			(1)	%
Weighted average diluted shares outstanding	s	217,403			219,581			(1)	%

Select Per-Share & Performance Metrics
Earnings-per-share - basic	j / r	$	1.55		$	1.92		(19)	%
Earnings-per-share - diluted	j / s	$	1.55		$	1.91		(19)	%
Efficiency ratio	h / f	57.83		%	59.53		%	(1.70)
PPNR return on average assets	k / n	1.73		%	1.70		%	0.03
Return on average assets	j / n	1.09		%	1.39		%	(0.30)
Return on average tangible assets	j / o	1.09		%	1.39		%	(0.30)
Return on average common equity	j / p	13.07		%	15.56		%	(2.49)
Return on average tangible common equity	j / q	13.11		%	15.63		%	(2.52)

Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic	m / r	$	1.66		$	1.96		(15)	%
Operating earnings-per-share - diluted	m / s	$	1.65		$	1.95		(15)	%
Operating efficiency ratio	i / g	55.66		%	58.30		%	(2.64)
Operating PPNR return on average assets	l / n	1.83		%	1.73		%	0.10
Operating return on average assets	m / n	1.17		%	1.41		%	(0.24)
Operating return on average tangible assets	m / o	1.17		%	1.42		%	(0.25)
Operating return on average common equity	m / p	13.97		%	15.86		%	(1.89)
Operating return on average tangible common equity	m / q	14.00		%	15.93		%	(1.93)


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

Core Banking		Year to Date						% Change
(Dollars in thousands)		Dec 31, 2022			Dec 31, 2021			Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	2		$	8		(75)	%
Loss on equity securities, net		(7,099)			(1,511)			370	%
Gain on swap derivatives		16,249			8,395			94	%
Change in fair value of certain loans held for investment		(58,464)			3,032			nm
Total non-interest income adjustments	a	$	(49,312)		$	9,924		nm

Non-Interest Expense Adjustments
Merger related expenses		$	17,356		$	15,183		14	%
Exit and disposal costs		6,805			12,763			(47)	%
Total non-interest expense adjustments	b	$	24,161		$	27,946		(14)	%

Net interest income (1)	c	$	1,066,976		$	909,598		17	%

Non-interest income (GAAP)	d	$	91,930		$	168,649		(45)	%
Less: Non-interest income adjustments	a	49,312			(9,924)			nm
Operating non-interest income (non-GAAP)	e	$	141,242		$	158,725		(11)	%

Revenue (GAAP) (1)	f=c+d	$	1,158,906		$	1,078,247		7	%
Operating revenue (non-GAAP) (1)	g=c+e	$	1,208,218		$	1,068,323		13	%

Non-interest expense (GAAP) (2)	h	$	648,610		$	625,676		4	%
Less: Non-interest expense adjustments	b	(24,161)			(27,946)			(14)	%
Operating non-interest expense (non-GAAP)	i	$	624,449		$	597,730		4	%

Net income (GAAP)	j	$	317,540		$	371,963		(15)	%
Provision for income taxes		107,422			121,748			(12)	%
Income before provision for income taxes		424,962			493,711			(14)	%
Provision (recapture) for credit losses		84,016			(42,651)			nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	508,978			451,060			13	%
Less: Non-interest income adjustments	a	49,312			(9,924)			nm
Add: Non-interest expense adjustments	b	24,161			27,946			(14)	%
Operating PPNR (non-GAAP)	l	$	582,451		$	469,082		24	%

Net income (GAAP)	j	$	317,540		$	371,963		(15)	%
Less: Non-interest income adjustments	a	49,312			(9,924)			nm
Add: Non-interest expense adjustments	b	24,161			27,946			(14)	%
Tax effect of adjustments		(18,244)			(1,758)			nm
Operating net income (non-GAAP)	m	$	372,769		$	388,227		(4)	%

Efficiency ratio	h / f	55.97		%	58.03		%	(2.06)
Operating efficiency ratio	i / g	51.68		%	55.95		%	(4.27)
Core Banking net income / Consolidated net income		94.29		%	88.50		%	5.79
Core Banking operating net income / Consolidated operating net income		103.64		%	90.65		%	12.99
nm = not meaningful


Umpqua Holdings Corporation GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Mortgage Banking		Year to Date						% Change
(Dollars in thousands)		Dec 31, 2022			Dec 31, 2021			Year over Year
Non-Interest Income Adjustments
Change in fair value of MSR due to valuation inputs or assumptions		$	57,537		$	11,089		419	%
MSR hedge loss		(14,476)			—			nm
Total non-interest income adjustments	a	$	43,061		$	11,089		288	%

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

Net interest income	c	$	4,358		$	11,560		(62)	%

Non-interest income (GAAP)	d	$	107,598		$	187,669		(43)	%
Less: Non-interest income adjustments	a	(43,061)			(11,089)			288	%
Operating non-interest income (non-GAAP)	e	$	64,537		$	176,580		(63)	%

Revenue (GAAP)	f=c+d	$	111,956		$	199,229		(44)	%
Operating revenue (non-GAAP)	g=c+e	$	68,895		$	188,140		(63)	%

Non-interest expense (GAAP) (1)	h	$	86,340		$	134,780		(36)	%
Less: Non-interest expense adjustments	b	—			—			nm
Operating non-interest expense (non-GAAP)	i	$	86,340		$	134,780		(36)	%

Net income (GAAP)	j	$	19,212		$	48,337		(60)	%
Provision for income taxes		6,404			16,112			(60)	%
Income before provision for income taxes		25,616			64,449			(60)	%
Provision for credit losses		—			—			nm
Pre-provision net revenue (PPNR) (non-GAAP)	k	25,616			64,449			(60)	%
Less: Non-interest income adjustments	a	(43,061)			(11,089)			288	%
Add: Non-interest expense adjustments	b	—			—			nm
Operating PPNR (non-GAAP)	l	$	(17,445)		$	53,360		(133)	%

Net income (GAAP)	j	$	19,212		$	48,337		(60)	%
Less: Non-interest income adjustments	a	(43,061)			(11,089)			288	%
Add: Non-interest expense adjustments	b	—			—			nm
Tax effect of adjustments		10,765			2,772			288	%
Operating net income (non-GAAP)	m	$	(13,084)		$	40,020		(133)	%

Efficiency ratio	h / f	77.12		%	67.65		%	9.47
Operating efficiency ratio	i / g	125.32		%	71.64		%	53.68
Mortgage Banking net income / Consolidated net income		5.71		%	11.50		%	(5.79)
Mortgage Banking operating net income / Consolidated operating net income		(3.64)		%	9.35		%	(12.99)
nm = not meaningful


UMPQUA REPORTS FOURTH QUARTER AND FULL-YEAR 2022 RESULTS
$0.38	$83	13.53%	13.7%
4Q22 Net earnings per diluted common share	4Q22 Net income ($ in millions)	4Q22 Return on avg tangible common equity ("ROATCE")1	Total risk-based capital ratio (estimated)


			Fourth Quarter 2022 Results •Net income of $83 million, or $0.38 per common share •Operating net income of $99 million, or $0.46 per common share1 •Loan balances increased $648 million or 2.5% •Deposit balances increased $249 million or 0.9% •Net interest margin increased 13 basis points to 4.01%


			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