8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2010

Commission File Number: 000-25597

Umpqua Holdings Corporation

(Exact Name of Registrant as Specified in Its Charter)

OREGON	93-1261319
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

One SW Columbia Street, Suite 1200

Portland, Oregon 97258

(Address of Principal Executive Offices)(Zip Code)

(503) 727-4100

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

EXPLANATORY NOTE

On March 1, 2010, Umpqua Holdings Corporation, (the “Company”) filed a Current Report on Form 8-K (the “Original Form 8-K”) to report that its wholly-owned subsidiary, Umpqua Bank (the “Bank”), had entered into a definitive agreement with the Federal Deposit Insurance Corporation (the “FDIC”) on February 26, 2010, pursuant to which the Bank acquired certain assets and assumed certain liabilities of Rainier Pacific Bank, a Washington state-chartered bank headquartered in Tacoma, Washington (the “Rainier Acquisition”). This amendment is being filed to update the disclosures in Item 2.01 of the Original Form 8-K and to provide financial information required by Item 9.01. In accordance with the guidance provided in Securities and Exchange Commission (the “Commission”) Staff Accounting Bulletin Topic 1.K, Financial Statements of Acquired Troubled Financial Institutions (“SAB 1:K”) and a request for relief granted by the Commission, the Company has omitted certain financial information of Rainier Pacific Bank required by Rule 3-05 of Regulation S-X. SAB 1:K provides relief from the requirements of Rule 3-05 of Regulation S-X under certain circumstances, including a transaction such as the Rainier Acquisition, in which the registrant engages in an acquisition of a troubled financial institution for which audited financial statements are not reasonably available and in which federal assistance is an essential and significant part of the transaction.

Statements made in this Amendment No. 1 on Form 8-K/A, other than those concerning historical financial information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the Company’s expectations concerning its financial condition, operating results, cash flows, earnings, net interest margin, net interest income, efficiencies achieved through combination of operational processes, liquidity, expected reimbursements under the shared-loss agreements and other effects of the shared-loss agreements and capital resources. A discussion of risks, uncertainties and other factors that could cause actual results to differ materially from management’s expectations is set forth in this document and exhibits, and under the captions “Forward-Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.

Item 2.01 Completion of Acquisition or Disposition of Assets

Effective February 26, 2010, the Bank acquired certain assets and assumed certain liabilities of Rainier Pacific Bank from the FDIC as receiver for Rainier Pacific Bank, pursuant to the terms of a purchase and assumption agreement entered into by the Bank and the FDIC on February 26, 2010 (the “Purchase and Assumption Agreement” or “Agreement”). The Rainier Acquisition included all 14 branches of Rainier Pacific Bank, which opened as branches of the Bank as of Saturday, February 27, 2010.

Under the terms of the Purchase and Assumption Agreement, the Bank acquired certain assets of Rainier Pacific Bank with a fair value of approximately $721.2 million, including $461.4 million of loans, $26.5 million of investment securities, $94.1 million of cash and cash equivalents, and $139.2 million of other assets including goodwill and an indemnification asset. Liabilities with a fair value of approximately $721.2 million were also assumed, including $425.8 million of insured and uninsured deposits, $293.2 million of Federal Home Loan Bank (“FHLB”) advances and $2.2 million of other liabilities.

The fair values of the assets acquired and liabilities assumed were determined based on the requirements of the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board Accounting Standards Codification (the “FASB ASC”). The Statement of Assets Acquired and Liabilities Assumed by the Bank, dated as of February 26, 2010, and the accompanying notes thereto, (the “Audited Statement”) are attached hereto as Exhibit 99.1 and incorporated herein by reference. The foregoing fair value amounts are subject to change for up to one year after the closing date of the Rainier Acquisition as additional information relative to closing date fair values becomes available. The amounts are also subject to adjustments based upon final settlement with the FDIC. In addition, the tax treatment of FDIC assisted acquisitions is complex and subject to interpretations that may result in future adjustments of deferred taxes as of the acquisition date. The terms of the Agreement provide for the FDIC to indemnify the Bank against claims with respect to liabilities of Rainier Pacific Bank not assumed by the Bank and certain other types of claims identified in the Agreement. The disclosure set forth in this Item 2.01 reflects the status of these items to the best of management’s knowledge as of May 12, 2010.

In connection with the Rainier Acquisition, the Bank entered into loss sharing agreements (each, a “shared-loss agreement” and collectively, the “shared-loss agreements”) with the FDIC which collectively cover approximately $561.5 million (contractual principal, excluding purchase accounting adjustments) and $13.2 million (book value, excluding purchase accounting adjustments) of Rainier Pacific Bank’s loans and other real estate owned (“OREO”), respectively. The Bank will share in the losses, which begins with the first dollar of loss incurred, of the loan pools (including single family residential mortgage loans, commercial loans, foreclosed loan collateral and other real estate owned) covered (“covered assets”) under the shared-loss agreements. Pursuant to the terms of the shared-loss agreements, the FDIC is obligated to reimburse the Bank for 80% of eligible losses of up to $95 million with respect to covered assets. The FDIC will reimburse the Bank for 95% of eligible losses in excess of $95 million with respect to covered assets. The Bank has a corresponding obligation to reimburse the FDIC for 80% or 95%, as applicable, of eligible recoveries related to covered assets.

2

The shared-loss agreement for commercial and single family residential mortgage loans is in effect for five years and ten years, respectively, from the February 26, 2010 acquisition date and the loss recovery provisions for such loans are in effect for eight years and ten years, respectively, from the acquisition date.

In April 2020, approximately ten years following the acquisition date, the Bank is required to make a payment to the FDIC in the event that losses on covered assets under the shared-loss agreements have been less than the stated threshold level. The payment amount will be 50% of the excess, if any, of (i) $19 million (or 20% of the stated threshold of $95 million) over (ii) the sum of (a) ($3.3 million) (or 25% of the asset discount of ($13.1 million)), plus (b) 25% of cumulative shared-loss payments (as defined in the Agreement), plus (c) the cumulative servicing amount received by the Bank from the FDIC on covered assets. As of March 31, 2010, the Bank estimates that there will be no liability under this provision.

The shared-loss agreements are subject to certain servicing procedures as specified in an agreement with the FDIC. The expected net reimbursements under the shared-loss agreements were recorded at their estimated fair value of $72.8 million on the acquisition date.

The Bank did not immediately acquire all the real estate, banking facilities, furniture or equipment of Rainier Pacific Bank as part of the Purchase and Assumption Agreement. However, the Bank has the option to purchase or lease the real estate and furniture and equipment from the FDIC. The term of these options expires 90 days after February 26, 2010, unless extended by the FDIC. Acquisition costs of the real estate and furniture and equipment will be based on current appraisals and determined at a later date. Currently all banking facilities and equipment of Rainier Pacific Bank are being leased from the FDIC on a month-to-month basis.

The foregoing summary of the Agreement, including the shared-loss agreements, is not complete and is qualified in its entirety by reference to the full text of the Agreement and certain exhibits attached thereto, a copy of which was previously filed as Exhibit 2.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and is incorporated by reference into this item 2.01.

Item 9.01 Financial Statements and Exhibits

(a) Financial Statements of Businesses Acquired.

Discussion

As set forth in Item 2.01 above, on February 26, 2010, the Bank acquired certain assets and assumed substantially all of the deposits and certain liabilities of Rainier Pacific Bank pursuant to the Purchase and Assumption Agreement with the FDIC. A narrative description of the anticipated effects of the Rainier Acquisition on the Company’s financial condition, liquidity, capital resources and operating results is presented below. This discussion should be read in conjunction with the historical financial statements and the related notes of the Company, which were filed with the Commission on Form 10-K on February 19, 2010 and the Audited Statement, which is attached hereto as Exhibit 99.1.

The Rainier Acquisition increased the Bank’s total assets and total deposits, which are expected to positively affect the Bank’s operating results, to the extent the Bank earns more from interest earned on its assets than it pays in interest on deposits and other borrowings. The ability of the Bank to successfully collect interest and principal on loans acquired will also impact the Bank’s cash flows and operating results.

The Company has determined that the acquisition of the net assets of Rainier Pacific Bank constitutes a business acquisition as defined by the Business Combinations topic of the FASB ASC. Accordingly, the assets acquired and liabilities assumed as of February 26, 2010 are presented at their fair values in the table below as required by that topic. In many cases, the determination of these fair values required management to make estimates about discount rates, expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. These acquisition date fair value estimates are subject to change for up to one year after the closing date of the Rainier Acquisition as additional information relative to closing date fair values becomes available. The Bank and the FDIC are engaged in ongoing discussions that may impact which assets and liabilities are ultimately acquired or assumed by the Bank and/or the purchase price.

Financial Condition

In the Rainier Acquisition, the Bank purchased loans with a fair value of $461.4 million, net of a $100.1 million discount. This amount represented approximately 8% of the Bank’s total loans (net of the allowance for loan and lease losses) at December 31, 2009. In addition, the Bank acquired $94.1 million in cash and cash equivalents and $26.5 million in investment securities at fair value. The Bank also acquired OREO with a fair value of $6.6 million. Finally, in connection with this acquisition, the Bank recorded an FDIC indemnification asset of $72.8 million, $34.3 million of goodwill, a customer relationship intangible related to an insurance book of $5.2 million, and a $1.1 million core deposit intangible.

3

The following table presents information with respect to the carrying value of certain earning assets acquired, as well as their principal amount and average effective yield:

(dollars in thousands)
	Book Balance		Fair Value		Effective Interest Rate  (1)
INTEREST-EARNING ASSETS:
Covered loans and leases	$	561,477	$	461,417	6.32%
Taxable securities		16,919		16,919	2.99%
Non-taxable securities		9,559		9,559	3.79%
Temporary investments and interest bearing deposits		30,115		30,115	0.25%
Total interest earning assets		618,070		518,010
Other assets		87,369		203,151
Total assets	$	705,439	$	721,161
INTEREST-BEARING LIABILITIES:
Interest bearing checking and savings accounts	$	174,061	$	174,061	0.50%
Time deposits		204,813		206,628	1.92%
Term debt		279,284		293,191	4.34%
Total interest bearing liabilities		658,158		673,880
Non-interest bearing deposits		45,069		45,069
Other liabilities		2,212		2,212
Total liabilities	$	705,439	$	721,161

(1) Effective interest rate presented is calculated based on the contractual terms of the underlying instrument, and may not reflect the effective yields that will be recognized after considering the maturity or accretion of purchase accounting adjustments.

Investment Portfolio

The Bank acquired investment securities with an estimated fair value of $26.5 million in the Rainier Acquisition. The acquired securities included obligations of state and political subdivisions and residential mortgage-backed securities.

The following table presents the composition of the investment securities portfolio acquired at February 26, 2010:

(in thousands)
Obligations of state and political subdivisions	$	9,559
Residential mortgage-backed securities and collateralized mortgage obligations		16,919
	$	26,478

In addition, the Bank also acquired $13.7 million in Federal Home Loan Banks of Seattle stock.

The following table presents a summary of yields and contractual maturities of the investment securities portfolio acquired at February 26, 2010:

(dollars in thousands)
	Due through one year			After one but within five years			After five but within ten years			After ten years			Total
	Amount		Yield	Amount		Yield	Amount		Yield	Amount		Yield	Amount		Yield
Obligations of state and political subdivisions	$	2,050	4.00%	$	6,993	3.72%	$	-	-	$	516	4.00%	$	9,559	3.79%
Residential mortgage-backed securities and collateralized mortgage obligations		-	-		13,943	2.73%		2,337	3.99%		639	5.01%		16,919	2.99%
Investment securities	$	2,050		$	20,936		$	2,337		$	1,155		$	26,478

4

Covered loans

The following table presents the balance of each major category of covered loans acquired in the Rainier Acquisition as of February 26, 2010:

(dollars in thousands)
	Amount
Performing:
Real estate - construction and land development	$	22,596
Real estate - commercial and agricultural		244,494
Real estate - single and multi-family residential		218,095
Commercial, industrial and agricultural		27,393
Installment and other		12,324
Total performing loans		524,902
Total discount resulting from acquisition date fair value		(72,184)
Net performing loans	$	452,718
Non-performing:
Real estate - construction and land development	$	24,224
Real estate - commercial and agricultural		9,853
Real estate - single and multi-family residential		767
Commercial, industrial and agricultural		1,572
Installment and other		159
Total nonaccrual loans		36,575
Total discount resulting from acquisition date fair value		(27,876)
Net nonaccrual loans		8,699
Net loans covered under loss sharing agreement	$	461,417

At the February 26, 2010 acquisition date, the Bank estimated the fair value of the Rainier Acquisition loan portfolio at $461.4 million, which represents the expected discounted cash flows from the portfolio. In estimating such fair value, the Bank (a) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimated the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The amount by which the undiscounted expected cash flows exceed the estimated fair value (the “accretable yield”) is accreted into interest income over the life of the loans. The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows represents the nonaccretable difference. The nonaccretable difference represents an estimate of expected credit losses in the Rainier Acquisition loan portfolio at the acquisition date.

As part of estimating the credit losses inherent in the loan portfolio, the Bank established an FDIC indemnification asset, which represents the present value of the estimated losses on covered loans to be reimbursed by the FDIC based on the applicable terms of the loss sharing agreement. The FDIC indemnification asset will be reduced as losses are recognized on covered loans and loss sharing payments are received from the FDIC. Realized losses in excess of acquisition date estimates will increase the FDIC indemnification asset. Conversely, if realized losses are less than acquisition date estimates, the FDIC indemnification asset will be reduced by a charge to earnings.

The covered loans acquired are and will continue to be subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a provision for credit losses will be charged to earnings. These provisions will be mostly offset by an increase to the FDIC indemnification asset, and will be recognized in non-interest income.

Non-performing covered loans are impaired loans, largely collateral dependent for which we cannot reliably estimate cash flows.

The undiscounted contractual cash flows for the covered performing loans and covered non-performing loans are $709.5 million and $36.6 million, respectively. The undiscounted estimated cash flows not expected to be collected for the covered performing loans and covered non-accrual loans are $62.3 million and $27.9 million, respectively.

The accretable yield on performing loans represents the amount by which the undiscounted expected cash flows exceed the estimated fair value. At February 26, 2010, such accretable yield was approximately $194.4 million. Loans are reviewed each reporting period to determine whether any changes occurred in expected cash flows that would result in a reclassification from nonaccretable difference to accretable yield.

The Bank also acquired OREO with a fair value of $6.6 million. The Bank refers to the loans and OREO acquired in the Rainier Acquisition as “covered assets” as the Bank will be reimbursed by the FDIC for a substantial portion of any future losses on them under the terms of the shared loss agreements.

5

Contractual Maturity of Loan Portfolio

The following table presents the maturity schedule with respect to certain individual categories of loans acquired and provides separate analyses with respect to fixed rate loans and floating rate loans as of February 26, 2010. The amounts shown in the table are unpaid balances.

(in thousands)	By Maturity								Loans Over One Year by Rate Sensitivity
	One Year or Less		One Through Five Years		Over Five Years		Total		Fixed Rate		Floating Rate
Commercial and agricultural	$	4,744	$	21,644	$	2,577	$	28,965	$	10,689	$	13,532
Real estate - construction		46,494		326		-		46,820		-		326
	$	51,238	$	21,970	$	2,577	$	75,785	$	10,689	$	13,858

Deposits

In the Rainier Acquisition, the Bank assumed $425.8 million in deposits at fair value. This amount represents approximately 6% of the Bank’s total deposits at December 31, 2009. The following table presents a summary of the deposits acquired and the average interest rates in effect at the acquisition date:

(dollars in thousands)
	Amount		Wtd Avg. Rate
Noninterest bearing	$	45,069	-
Interest bearing demand		41,150	0.16%
Savings and money market		132,911	0.61%
Time, $100,000 and over		89,336	1.96%
Time, less than $100,000		117,292	1.89%
Total	$	425,758

At February 26, 2010, scheduled maturities of time deposits were as follows:

(in thousands)
2010	$	144,872
2011		39,727
2012		21,352
2013		58
2014		619
Total	$	206,628

The deposits acquired include $134.0 million of brokered time deposits as of the acquisition date. The Bank is not renewing these brokered deposits as they mature.

In its assumption of the deposit liabilities, the Bank determined that the customer relationships associated with these deposits have intangible value. The Bank applied the Business Combinations topic of the FASB ASC, which prescribes the accounting for goodwill and other intangible assets, such as core deposit intangibles in a business combination. The Bank determined the fair value of a core deposit intangible asset to be approximately $1.1 million, which will be amortized on an accelerated basis over 10 years. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and the age of deposit relationships. The estimation of the life and value of the core deposit intangible asset acquired is necessarily subjective. See Note 1 to the Audited Statement. The Company does not expect the core deposit intangible asset acquired or its amortization to have a material effect upon future results of operations, liquidity or capital resources.

6

Term debt

The Bank assumed $293.2 million in FHLB advances, at fair value. The FHLB advances acquired at February 26, 2010 are term debt and are secured by a blanket lien on eligible loans.

The following table summarizes the principal balance of FHLB advances outstanding by year of maturity and weighted average interest rates at February 26, 2010:

(dollars in thousands)
	Amount		Wtd Avg. Rate
2010	$	24,568	3.24%
2011		9,700	1.50%
2012		-	-
2013		-	-
2014		-	-
Thereafter		245,016	4.56%
Total		279,284	4.34%
Fair value adjustment		13,907
Total	$	293,191

Operating Results and Cash Flows

The Company’s management has from time to time become aware of acquisition opportunities and has performed various levels of review related to potential acquisitions in the past. This particular transaction was attractive to the Company for a variety of reasons, including the:

• ability to increase the Company’s market share in the Puget Sound region of Washington State,

• attractiveness of immediate core deposit growth with a low cost of funds, and

• opportunities to enhance income and efficiency due to the centralization of some duties and elimination of duplications of effort.

The Company expects that the acquisition will have an immediate positive impact on its earnings, such as an increase in the Company’s net interest margin and efficiencies achieved through the elimination of duplicative operation processes. Also, the Company believes that the transaction will improve the Company’s net interest income, as the Company earns more from interest earned on its loans and investments than it pays in interest on deposits and borrowings.

The degree to which the Company’s operating results may be adversely affected by the acquired loans is offset to a significant extent by the shared-loss agreements and the related discounts reflected in the fair value of these assets at the acquisition date. In accordance with the provisions of ASC 310-30, Receivables, the fair values of the acquired loans reflect an estimate of expected losses related to the acquired loans. As a result, the Company’s operating results would only be adversely affected by loan losses of the acquired loans to the extent that such losses exceed the expected losses reflected in the fair value of the acquired loans at the acquisition date. In addition, to the extent that the stated interest rate on acquired loans was not considered a market rate of interest at the acquisition date, appropriate adjustments to the acquisition-date fair value will be recorded. These adjustments mitigate the risk associated with the acquisition of loans earning a below market rate of return.

ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition for loans that fall under its scope. On the acquisition date, the preliminary estimate of the contractual principal and interest payments for all performing loans acquired in the acquisition was $709.5 million and the estimated fair value of the loans was $452.7 million net of an accretable yield of $194.4 million. These amounts were determined based upon the estimated remaining life of the underlying loans, which include the effects of estimated prepayments, expected credit losses and market liquidity and interest rates.

On the acquisition date, the unpaid principal balance for all non-performing loans acquired in the acquisition was $36.6 million and the estimated fair value of the loans totaled $8.7 million. The fair value of non-accrual loans was determined based upon the estimated remaining life of the underlying loans, which include the effects of estimated prepayments, expected credit losses and adjustments related to market liquidity and prevailing interest rates at the acquisition date.

The shared-loss agreements will likely have a material impact on the cash flows and operating results of the Bank in both the short-term and the long-term. In the short-term, it is likely that there will be a significant amount of the covered loans that will experience deterioration in payment performance or will be determined to have inadequate collateral values to repay the loans. In such instances, the Bank will likely no longer receive payments from the borrowers, which will impact cash flows. The shared-loss agreements may not fully offset the financial effects of such a situation. However, if a loan is subsequently charged off or charged down after the Bank exhausts its best efforts at collection, the shared-loss agreements will cover a substantial portion of the loss associated with the covered assets.

7

The effects of the shared-loss agreements on cash flows and operating results in the long-term are likely to be similar to the short-term effects described above. The long-term effects that the Bank may experience will depend primarily on the ability of the borrowers under the various loans covered by the shared-loss agreements to make payments over time. As the shared-loss agreements cover up to a 10-year period, changing economic conditions will likely impact the timing of future charge-offs and the resulting reimbursements from the FDIC. The Bank believes that any recapture of interest income and recognition of cash flows from the borrowers or received from the FDIC may be recognized unevenly over this period, as the Bank exhausts its collection efforts under its normal practices. In addition, the Bank recorded substantial discounts related to the purchase of these covered loans. A portion of these discounts will be accreted to income over the economic life of the underlying loans and will be dependent upon the timing and success of the Bank’s collection efforts on the covered loans.

Liquidity and Capital Resources

The Bank believes that its liquidity position will be improved as a result of the Rainier Acquisition. The Bank acquired $94.1 million in cash and cash equivalents, as well as $26.5 million of investment securities. All loans acquired were pledged to the FHLB, thereby increasing our available line of credit. Securities provide monthly cash flows in the form of principal and interest payments. These additions to the Bank’s balance sheet represent additional support for its liquidity needs.

Deposits in the amount of $423.9 million were also assumed in the Rainier Acquisition. Of this amount, $86.2 million were in the form of interest and non-interest bearing transaction accounts.

The Bank assumed $293.2 million in FHLB advances, at fair value.

Goodwill of $34.3 million and a core deposit intangible of $1.1 million were recorded in conjunction with the Rainier Acquisition. Such goodwill and intangibles are excluded from regulatory capital as calculated under regulatory accounting practices. This exclusion generally results in a reduction to the Company’s regulatory capital. The Bank remains “well-capitalized” under the regulatory framework for prompt corrective action after taking into consideration the results of the Rainier Acquisition.

The following table shows Umpqua Holdings’ consolidated and Umpqua Bank’s capital adequacy ratios, as calculated under regulatory guidelines, compared to the regulatory minimum capital ratio and the regulatory minimum capital ratio needed to qualify as a “well-capitalized” institution at March 31, 2010. The Bank remains “well-capitalized” after taking into consideration the results of the recent public stock offering completed shortly before the acquisition and the redemption of preferred stock issued to the U.S. Treasury:

(dollars in thousands)
				For Capital			To be Well
	Actual			Adequacy purposes			Capitalized
	Amount		Ratio	Amount		Ratio	Amount		Ratio
As of March 31, 2010
Total Capital
(to Risk Weighted Assets)
Consolidated	$	1,242,354	17.77%	$	559,304	8.00%	$	699,130	10.00%
Umpqua Bank	$	1,050,003	15.03%	$	558,884	8.00%	$	698,605	10.00%
Tier I Capital
(to Risk Weighted Assets)
Consolidated	$	1,154,649	16.51%	$	279,745	4.00%	$	419,618	6.00%
Umpqua Bank	$	962,365	13.77%	$	279,554	4.00%	$	419,331	6.00%
Tier I Capital
(to Average Assets)
Consolidated	$	1,154,649	12.41%	$	372,167	4.00%	$	465,209	5.00%
Umpqua Bank	$	962,365	10.39%	$	370,497	4.00%	$	463,121	5.00%

8

Financial Statements

Attached hereto as Exhibit 99.1 and incorporated by reference into this Item 9.01(a) is an Audited Statement of Assets Acquired and Liabilities Assumed by the Bank (a wholly owned subsidiary of the Company) at February 26, 2010 and the accompanying notes thereto.

The Company has omitted certain financial information of Rainier Pacific Bank required by Rule 3-05 of Regulation S-X and the related pro forma financial information under Article 11 of Regulation S-X pursuant to the guidance provided in SAB 1:K and a request for relief granted by the Commission. SAB 1:K provides relief from the requirements of Rule 3-05 of Regulation S-X in certain instances, such as the Rainier Acquisition, where a registrant engages in an acquisition of a significant amount of assets of a troubled financial institution that involves pervasive federal assistance and audited financial statements of the troubled financial institution are not reasonably available.

(b) Pro Forma Financial Information.

The Company has omitted certain financial information of Rainier Pacific Bank required by Rule 3-05 of Regulation S-X and the related pro forma financial information under Article 11 of Regulation S-X pursuant to the guidance provided in SAB 1:K and a request for relief granted by the Commission. SAB 1:K provides relief from the requirements of Rule 3-05 of Regulation S-X in certain instances, such as the Rainier Acquisition, where a registrant engages in an acquisition of a significant amount of assets of a troubled financial institution that involves pervasive federal assistance and audited financial statements of the troubled financial institution are not reasonably available.

(d) Exhibits.

Exhibit No.	Description
23	Consent of Moss Adams LLP
99.1	Report of Independent Registered Public Accounting Firm Statement of Assets Acquired and Liabilities Assumed at February 26, 2010 Notes to Statement of Assets Acquired and Liabilities Assumed

9

SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	UMPQUA HOLDINGS CORPORATION
	(Registrant)
Dated     May 12, 2010	/s/ Raymond P. Davis
	Raymond P. Davis
	President and Chief Executive Officer
Dated     May 12, 2010	/s/ Ronald L. Farnsworth
	Ronald L. Farnsworth
	Executive Vice President/Chief Financial Officer and Principal Financial Officer
Dated     May 12, 2010	/s/ Neal T. McLaughlin
	Neal T. McLaughlin
	Executive Vice President/Treasurer and Principal Accounting Officer

10

EXHIBIT INDEX

Exhibit No.	Description
23	Consent of Moss Adams LLP
99.1	Report of Independent Registered Public Accounting Firm Statement of Assets Acquired and Liabilities Assumed at February 26, 2010 Notes to Statement of Assets Acquired and Liabilities Assumed

11

EX-23

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements of Umpqua Holdings Corporation of our report dated May 12, 2010, relating to the statement of assets and liabilities assumed by Umpqua Bank (a wholly-owned subsidiary of Umpqua Holdings Corporation.), pursuant to the Purchase and Assumption Agreement dated February 26, 2010, included in this Current Report on Form 8-K/A of Umpqua Holdings Corporation.

• Registration Statement on Form S-3 (No. 333-155997)

• Registration Statements on Form S-8 (Nos. 333-144766, 333-143347, 333-135071, 333-117680, 333-117679, 333-105637, 333-101357, 333-58978, 333-77259)

/s/ Moss Adams LLP

Portland, Oregon

May 12, 2010

EX-99.1

EXHIBIT 99.1

INDEX OF FINANCIAL STATEMENTS

Description	Page No.
Report of Independent Registered Public Accounting Firm	2
Statement of Assets Acquired and Liabilities Assumed at February 26, 2010	3
Notes to Statement of Assets Acquired and Liabilities Assumed	4-9

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors

Umpqua Holdings Corporation

We have audited the accompanying statement of assets acquired and liabilities assumed by Umpqua Bank (the “Bank”), a wholly-owned subsidiary of Umpqua Holdings Corporation (the “Company”), pursuant to the Purchase and Assumption Agreement, dated February 26, 2010, executed by the Bank with the Federal Deposit Insurance Corporation. This financial statement is the responsibility of the Company’s management. Our responsibility is to express an opinion on the financial statement based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, such statement of assets acquired and liabilities assumed by Umpqua Bank pursuant to the Purchase and Assumption Agreement, dated February 26, 2010, is presented fairly, in all material respects, on the basis of accounting described in Note 1.

/s/ Moss Adams LLP

Portland, Oregon

May 12, 2010

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Statement of Assets Acquired and Liabilities Assumed

by Umpqua Bank

(a wholly-owned subsidiary of Umpqua Holdings Corporation)

(in thousands)
	February 26, 2010
Assets Acquired:
Cash and due from banks	$	63,952
Interest bearing deposits		30,115
Total cash and cash equivalents		94,067
Investment securities
Available for sale, at fair value		26,478
Covered loans		461,417
Restricted equity securities		13,712
Goodwill		34,317
Other intangible assets		6,253
Covered other real estate owned		6,580
FDIC indemnification asset		72,822
Other assets		5,515
Total assets acquired	$	721,161
Liabilities Assumed:
Deposits	$	425,758
Term debt		293,191
Other liabilities		2,212
Total liabilities assumed	$	721,161

The accompanying notes are an integral part of this financial statement.

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NOTES TO STATEMENT OF ASSETS ACQUIRED AND LIABILITIES ASSUMED

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Umpqua Holdings Corporation (the “Company”) is a financial holding company headquartered in Portland, Oregon, that is engaged primarily in the business of commercial and retail banking and the delivery of retail brokerage services. The Company provides a wide range of banking, asset management, mortgage banking and other financial services to corporate, institutional and individual customers through its wholly-owned banking subsidiary Umpqua Bank (the “Bank”). The Company engages in the retail brokerage business through its wholly-owned subsidiary Umpqua Investments, Inc. (“Umpqua Investments”). The Company and its subsidiaries are subject to regulation by certain federal and state agencies and undergo periodic examination by these regulatory agencies.

The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) and practices in the financial services industry.

As described in Note 2, the Bank acquired certain assets and assumed certain liabilities of the former Rainier Pacific Bank in a Federal Deposit Insurance Corporation (“FDIC”) assisted transaction (the “Rainier Acquisition”) on February 26, 2010. The acquisition of the net assets of Rainier Pacific Bank constitutes a business acquisition as defined by the Business Combinations topic of the Financial Accounting Standards Board Accounting Standards Codification (the “FASB ASC”). The Business Combinations topic establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired and the liabilities assumed. Accordingly, the estimated fair values of the acquired assets, including the FDIC indemnification asset and identifiable intangible assets, and the assumed liabilities in the Rainier Acquisition were measured and recorded at the February 26, 2010 acquisition date.

Fair Value of Assets Acquired and Liabilities Assumed

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. In some cases, the estimation of fair values requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. We describe below the methods used to determine the fair values of the significant assets acquired and liabilities assumed.

Cash and cash equivalents - Cash and cash equivalents include cash and due from banks, and interest bearing deposits with banks and the Federal Reserve Bank. Cash and cash equivalents have a maturity of 90 days or less at the time of purchase. The fair value of financial instruments that are short-term or re-price frequently and that have little or no risk are considered to have a fair value equal to carrying value.

Investment securities - The fair value for each purchased security was the quoted market price at the close of the trading day effective on February 26, 2010.

Covered loans - We refer to the loans acquired in the Rainier Acquisition as “covered loans” as we will be reimbursed for a substantial portion of any future losses on them under the terms of the FDIC shared-loss agreements. At the February 26, 2010 acquisition date, we estimated the fair value of the Rainier Acquisition loan portfolio subject to the FDIC shared-loss agreements at $461.4 million, which represents the discounted expected cash flows from the portfolio. In estimating such fair value, we (a) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimated the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The amount by which the undiscounted expected cash flows exceed the estimated fair value (the “accretable yield”) is accreted into interest income over the life of the loans. The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents the estimate of expected credit losses in the Rainier Acquisition loan portfolio at the acquisition date.

In calculating expected cash flows, management made several assumptions regarding prepayments, collateral cash flows, the timing of defaults, and the loss severity of defaults. Other factors expected by market participants were considered in determining the fair value of acquired loans, including loan pool level estimated cash flows, type of loan and related collateral, risk classification status (i.e. performing or nonperforming), fixed or variable interest rate, term of loan and whether or not the loan was amortizing and current discount rates.

Restricted equity securities - The fair value of acquired Federal Home Loan Bank (“FHLB”) stock was estimated to be its redemption value, which is also the par value. The FHLB requires member banks to purchase its stock as a condition of membership and the amount of FHLB stock owned varies based on the level of FHLB advances outstanding. This stock is generally redeemable and is presented at the par value.

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Goodwill - Goodwill in the amount of $34.3 million was recorded in connection with the Rainier Acquisition. Goodwill represents the excess of the estimated fair value of the liabilities assumed over the estimated fair value of the assets acquired.

Other intangible assets - In determining the estimated life and fair value of the core deposit intangible, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates, and age of the deposit relationships. Based on this valuation, a core deposit intangible asset of $1.1 million will be amortized over the projected useful lives of the related deposits on an accelerated basis over 10 years. Additionally, a customer relationship of $5.2 million related to an insurance book was measured based on market indicators.

Covered other real estate owned - Other real estate owned is presented at its estimated fair value and is also subject to the FDIC shared-loss agreement. The fair values were determined using expected selling price and date, less selling and carrying costs, discounted to present value.

FDIC indemnification asset - The FDIC indemnification asset is measured separately from each of the covered asset categories as it is not contractually embedded in any of the covered asset categories. For example, the FDIC indemnification asset related to estimated future loan losses is not transferable should we sell a loan prior to foreclosure or maturity. The $72.8 million fair value of the FDIC indemnification asset represents the present value of the estimated cash payments (net of amount owed to the FDIC) expected to be received from the FDIC for future losses on covered assets based on the credit adjustment on estimated cash flows for each covered asset pool and the loss sharing percentages. The ultimate collectability of the FDIC indemnification asset is dependent upon the performance of the underlying covered loans, the passage of time and claims paid by the FDIC. The difference between the present value and the undiscounted cash flows the Company expects to collect from the FDIC will be accreted into non-interest income over the life of the FDIC indemnification asset.

Deposits - The fair value of deposits with no stated maturity, such as non-interest bearing deposits, savings and interest checking accounts, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Term debt - The fair values for FHLB advances are estimated using a discounted cash flow method based on the current market rates.

Use of Estimates

Management made a number of significant estimates and assumptions relating to the reporting of assets and liabilities at the date of the statement of assets acquired and liabilities assumed. Management exercised significant judgment regarding assumptions about market participant expectations regarding discount rates, expected cash flows including prepayments, default rates, market conditions and other future events that are highly subjective in nature, and subject to change, and all of which affected the estimation of the fair values of the assets acquired and liabilities assumed in the Rainier Acquisition. Actual results could differ from those estimates. Changes that may vary significantly from our assumptions include loan prepayments, the rate of default, the severity of defaults, the estimated market values of collateral at disposition, the timing of such disposition, and deposit attrition.

2. FDIC-ASSISTED ACQUISITION

On February 26, 2010 the Bank acquired certain assets and assumed certain liabilities of Rainier Pacific Bank from the FDIC in an FDIC assisted transaction. As part of the Purchase and Assumption Agreement, the Bank and the FDIC entered into shared-loss agreements (each, a “shared-loss agreement” and collectively, the “shared-loss agreements”), whereby the FDIC will cover a substantial portion of any future losses on loans (and related unfunded loan commitments), other real estate owned (“OREO”) and accrued interest on loans for up to 90 days. We refer to the acquired loans and OREO subject to the shared-loss agreement collectively as “covered assets”. Under the terms of the shared-loss agreement, the FDIC will absorb 80% of losses and share in 80% of loss recoveries on the first $95 million on covered loans and absorb 95% of losses and share in 95% of loss recoveries exceeding $95 million. The shared-loss agreement for commercial and single family residential mortgage loans is in effect for five years and ten years, respectively, from the February 26, 2010 acquisition date and the loss recovery provisions for such loans are in effect for eight years and ten years, respectively, from the acquisition date.

The Bank purchased certain assets of Rainier Pacific Bank from the FDIC including (at fair value) approximately $461.4 million in loans, $94.1 million of cash and cash equivalents, and $26.5 million in investment securities. The Bank also assumed liabilities with fair value of approximately $425.8 million in deposits, $293.2 million in FHLB advances and $2.2 million of other liabilities of Rainier Pacific Bank from the FDIC. Rainier Pacific Bank was a full service commercial bank headquartered in Tacoma, Washington that operated 14 branch locations. The acquisition greatly expands our presence in the Pierce County and Puget Sound markets.

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The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting (formerly the purchase method). The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the February 26, 2010 acquisition date. The application of the acquisition method of accounting resulted in the recognition in $34.3 million of goodwill. A summary of the net assets received from the FDIC and the estimated fair value adjustments resulting in the goodwill are as follows:

(in thousands)
Cost basis net liabilities	$	(50,295)
Cash payment received from the FDIC		59,351
Fair value adjustments:
Covered loans		(100,060)
Covered other real estate owned		(6,581)
Other intangible assets		6,253
FDIC indemnification asset		72,822
Deposits		(1,815)
Term debt		(13,907)
Other		(85)
(Goodwill recognized)	$	(34,317)

The goodwill represents the excess of the estimated fair value of the liabilities assumed over the estimated fair value of the assets acquired. Under the FDIC-assisted transaction process, only certain assets and liabilities are transferred to the acquirer and, depending on the nature and amount of the acquirer’s bid, the FDIC may be required to make a cash payment to the acquirer. In the Rainier Acquisition as shown in the above table, net liabilities with a cost basis of $(50.3) million and a cash payment from the FDIC of $59.4 million were transferred to the Company.

The Bank did not immediately acquire all the real estate, banking facilities, furniture or equipment of Rainier Pacific Bank as part of the Purchase and Assumption Agreement. However, the Bank has the option to purchase or lease the real estate and furniture and equipment from the FDIC. The term of this option expires 90 days after February 26, 2010, unless extended by the FDIC. Acquisition costs of the real estate and furniture and equipment will be based on current appraisals and determined at a later date.

3. INVESTMENT SECURITIES AND RESTRICTED EQUITY SECURITIES

The Bank acquired $26.5 million of investment securities at estimated fair market value in the Rainier Acquisition. The acquired securities included obligations of state and political subdivisions and residential mortgage-backed securities and collateralized mortgage obligations. The fair value of investment securities acquired is as follows:

(in thousands)
Obligations of state and political subdivisions	$	9,559
Residential mortgage-backed securities and collateralized mortgage obligations		16,919
	$	26,478

Investment securities have contractual terms to maturity and require periodic payments to reduce principal. In addition, expected maturities may differ from contractual maturities because obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties. The estimated fair value of investment securities at February 26, 2010 is shown below by contractual maturity or, in the case of collateralized mortgage obligations and mortgage-backed securities, by expected life:

(in thousands)
Due through one year	$	2,050
Due after one but within five years		20,936
Due after five but within ten years		2,337
Due after ten years		1,155
Total	$	26,478

The Bank also acquired $13.7 million in FHLB of Seattle stock.

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4. COVERED LOANS

The fair value of loans covered by loss sharing at February 26, 2010 is as follows (in thousands):

(dollars in thousands)
	Amount
Performing:
Real estate - construction and land development	$	22,596
Real estate - commercial and agricultural		244,494
Real estate - single and multi-family residential		218,095
Commercial, industrial and agricultural		27,393
Installment and other		12,324
Total performing loans		524,902
Total discount resulting from acquisition date fair value		(72,184)
Net performing loans	$	452,718
Nonaccrual
Real estate - construction and land development	$	24,224
Real estate - commercial and agricultural		9,853
Real estate - single and multi-family residential		767
Commercial, industrial and agricultural		1,572
Installment and other		159
Total nonaccrual loans		36,575
Total discount resulting from acquisition date fair value		(27,876)
Net nonaccrual loans		8,699
Net loans covered under loss sharing agreement	$	461,417

We refer to the loans acquired in the Rainier Acquisition as “covered loans” as we will be reimbursed for a substantial portion of any future losses on them under the terms of the FDIC shared-loss agreements. At the February 26, 2010 acquisition date, we estimated the fair value of Rainier Pacific Bank’s loan portfolio subject to the shared-loss agreements at $461.4 million which represents the discounted expected cash flows from the portfolio. The amount by which the undiscounted expected cash flows exceed the estimated fair value (the “accretable yield”) is accreted into interest income over the life of the loans. The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents the estimate of expected credit losses in Rainier Pacific Bank’s loan portfolio at the acquisition date.

At February 26, 2010, the fair value of covered loans totaled $461.4 million which represented unpaid balances of $561.5 million reduced by a discount of $100.1 million resulting from acquisition date fair value adjustments. The undiscounted contractual cash flows for the covered loans are expected to be $746.1 million. The undiscounted estimated cash flows not expected to be collected for the covered loans are expected to be $90.2 million. At February 26, 2010, the accretable yield was approximately $194.4 million.

Non-performing covered loans are those loans showing evidence of credit deterioration since origination and it is probable, at the date of acquisition, that the Company will not collect all contractually required principal and interest payments. Generally, acquired loans that meet the Company’s definition for nonaccrual status fall within the definition of non-performing covered loans.

The covered loans acquired are and will continue to be subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a provision for credit losses will be charged to earnings. These provisions will be mostly offset by an increase to the FDIC indemnification asset, and will be recognized in non-interest income.

The acquired loan portfolio also includes revolving lines of credit with funded and unfunded commitments. Funds advanced at the time of acquisition will be accounted for under ASC 310-30. Any additional advances on these loans subsequent to the acquisition date will not be accounted for under ASC 310-30. The loss-share agreement covers the total commitments outstanding as of the acquisition date; as such, any additional advances post acquisition, up to the total commitment outstanding at the time of acquisition, represents a covered transaction.

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5. GOODWILL AND OTHER INTANGIBLES

The Statement of Assets Acquired and Liabilities Assumed reflects goodwill and other intangibles assets totaling $34.3 million and $6.3 million, respectively, at February 26, 2010. Goodwill represents the excess of the estimated fair value of the liabilities assumed over the estimated fair value of the assets acquired. The goodwill is deductible for income tax purposes. A customer relationship intangible totaling $5.2 million related to an insurance book was measured based on market indicators. Subsequent to acquisition, the insurance book was sold to a third party for $5.2 million.

The $1.1 million core deposit intangible will be amortized on an accelerated basis over 10 years. The estimated amortization expense for the remainder of 2010 and for the subsequent five years is as follows:

(in thousands)
Years ending December 31,	Estimated     Amortization Expense
2010	$	243
2011		146
2012		122
2013		109
2014		99
Thereafter		384
Total	$	1,103

6. DEPOSITS

Deposit liabilities assumed, and the weighted average rates of those deposits, were as follows February 26, 2010:

(dollars in thousands)
	Amount		Wtd Avg. Rate
Noninterest bearing	$	45,069	-
Interest bearing demand		41,150	0.16%
Savings and money market		132,911	0.61%
Time, $100,000 and over		89,336	1.96%
Time, less than $100,000		117,292	1.89%
Total	$	425,758

At February 26, 2010, scheduled maturities of time deposits were as follows:

(in thousands)
2010	$	144,872
2011		39,727
2012		21,352
2013		58
2014		619
Total	$	206,628

7. TERM DEBT

The Bank assumed $293.2 million in FHLB advances, at fair value. The FHLB advances acquired at February 26, 2010 are term debt and are secured by a blanket lien on eligible loans.

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The following table summarizes the maturity dates of FHLB advances outstanding and weighted average interest rate at February 26, 2010:

(dollars in thousands)
	Amount		Wtd Avg. Rate
2010	$	24,568	3.24%
2011		9,700	1.50%
2012		-	-
2013		-	-
2014		-	-
Thereafter		245,016	4.56%
Total		279,284	4.34%
Fair value adjustment		13,907
Total	$	293,191

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