Umpqua Bank - News & Murmurs

Media contacts:
Lani Hayward	\|	Umpqua Bank	\|	(503)727-4132	\|	lanihayward@umpquabank.com
Eve Calahan	\|	Lane PR	\|	(503)546-7867	\|	eve@lanepr.com

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1/28/2009

Portland, Ore

UMPQUA HOLDINGS REPORTS FOURTH QUARTER & FULL YEAR 2008 RESULTS
Total 2008 net earnings to common shareholders of $49.4 million, or $0.82 per diluted share
Q4 2008 net earnings to common shareholders of $2.2 million, or $0.04 per diluted share
Non-performing assets ended quarter at 1.88% of total assets
Total regulatory risk based capital of 14.61%, up from 10.89% a year ago
Tangible common equity ratio of 6.72%, up from 6.27% a year ago

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Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York, Inc., today announced fourth quarter 2008 net earnings applicable to common shareholders of $2.2 million, or $0.04 per diluted share, compared to $9.5 million, or $0.16 per diluted share, for the fourth quarter of 2007. For the full year 2008, the Company reported net earnings applicable to common shareholders of $49.4 million, or $0.82 per diluted share, compared to $63.3 million, or $1.05 per diluted share a year ago.

Significant financial statement items for the fourth quarter of 2008 include:

Provision for loan losses of $32.0 million, a reduction of 10% from the third quarter of 2008;

Total net charge-offs of $30.0 million, or 1.94% of average loans on an annualized basis;

The allowance for credit losses ended the year at 1.58% of total loans, up from 1.42% a year ago;

Non-performing assets ended the quarter at 1.88% of total assets. Non-performing loans ended the quarter at 2.18% of total loans;

Loans past due 30-89 days ended the year at $59.1 million, a decrease of 18% from September 30, 2008;

Deposits increased $95.3 million during the quarter, an increase of 1%;

Mortgage banking revenue includes a $3.0 million decline in the value of the mortgage servicing rights (MSR) asset;

A gain on the fair value of junior subordinated debentures of $8.8 million was recognized;

A loss on other real estate owned of $2.7 million was recognized;

The VISA litigation accrual of $2.1 million from the third quarter was reversed;

Net interest margin, on a tax equivalent basis, decreased 10 basis points during the quarter to 4.02%. Excluding reversals of interest on loans of $2.1 million, or 11 basis points, the net interest margin would have increased 1 basis point during the quarter;

The cost of interest bearing deposits for the fourth quarter was 2.15%, a decrease of 17 basis points from the third quarter, and

Issued $214.2 million in preferred stock to the U.S. Treasury, developing several new loan programs to stimulate economic activity in our markets.

"Although we’ve been immersed in this recession for the last year and a half, I am pleased to report that Umpqua's capital position and total liquidity remain strong, and our credit quality numbers, considering the state of the economy are very good," said Ray Davis, president and CEO of Umpqua Holdings Corporation. "With a total risk based capital ratio in excess of 14.6%, tangible common equity above 6.7%, liquidity in excess of $1.6 billion, and our non-performing assets still under 1.9% at year end, we remain confident that Umpqua will bounce back strong once economic conditions stabilize."

Operating earnings exclude merger related expense, net of tax, and goodwill impairment. The Company had no merger related expense in 2008. The following is a comparison of net earnings applicable to common shareholders to operating earnings for all periods presented:

	Quarter ended:			Sequential Quarter	Year over Year
(Dollars in thousands, except per share data)	12/31/08	9/30/08	12/31/07	% Change	% Change
Net earnings applicable to common shareholders	$2,210	$12,387	$9,516	(82)%	(77)%
Add back: Merger expense (net of tax) & goodwill impairment	982	--	71	nm	1,283%
Operating Earnings	$3,192	$12,387	$9,587	(74)%	(67)%

Earnings per diluted share:
Net earnings applicable to common shareholders	$0.04	$0.20	$0.16	(80)%	(75)%
Operating Earnings	$0.05	$0.20	$0.16	(75)%	(69)%

	Year ended:		Year over Year
(Dollars in thousands, except per share data)	12/31/08	12/31/07	% Change
Net earnings applicable to common shareholders	$49,424	$63,268	(22)%
Add back: Merger expense (net of tax) & goodwill impairment	982	1,991	(51)%
Operating Earnings	$50,406	$65,259	(23)%

Earnings per diluted share:
Net earnings applicable to common shareholders	$0.82	$1.05	(22)%
Operating Earnings	$0.83	$1.08	(23)%

nm = not meaningful

Credit quality

Non-performing assets were $161.3 million, or 1.88% of total assets, as of December 31, 2008, compared to $138.1 million, or 1.66% of total assets as of September 30, 2008. Of this amount, $5.5 million represented loans past due greater than 90 days and still accruing interest, $127.9 million represented non-accrual loans, and $27.9 million was other real estate owned. Approximately 70% of non-performing assets are from the residential development loan segment of the portfolio.

Total net charge-offs were $30.0 million in the fourth quarter of 2008, which represented 1.94% of average loans on an annualized basis. Prior to the second quarter of 2008, the Company recognized the charge-off of an impairment reserve when the loan was resolved, sold, or foreclosed/transferred to other real estate owned. Starting in the second quarter of 2008, the Company accelerated the charge-off of the impairment reserve to the period when it arises for collateral dependent loans. Therefore, the non-accrual loans of $127.9 million as of December 31, 2008 have already been written-down to their estimated net realizable value, based on disposition value, and are expected to be resolved over the coming quarters with no additional material loss.

The provision for loan losses for the fourth quarter of 2008 was $32.0 million, which was $2.0 million above the net charge-off level for the quarter. This difference represents a reserve build, increasing the allowance for credit losses from 1.54% of total loans as of September 30, 2008 to 1.58% of total loans as of December 31, 2008. Approximately $8.6 million, or 9%, of the allowance for credit losses was not allocated to specific loans, and represents an increase in the reserve during uncertain economic times.

For the past seven quarters, the Company has been aggressively resolving problems arising from the current economic downturn. The following is a recap of the Company’s credit quality trends since the start of 2007, noting the accelerated charge off of impairment reserves discussed above was implemented in the second quarter of 2008:

Credit quality trends

(Dollars in thousands)			Ending			Change in ratio of
	Provision	Net	specific	Allowance		non-performing
	for	charge-offs	impairment	for credit loss	30-89 days	assets to
	loan loss	(recoveries)	reserve	to loans %	past due %	total assets
Q1 2007	$83	$(90)	$857	1.14%	0.17%	0.06%
Q2 2007	3,413	31	5,088	1.17%	0.56%	0.41%
Q3 2007	20,420	865	16,244	1.47%	0.99%	0.37%
Q4 2007	17,814	21,188	9,893	1.42%	0.64%	0.22%
Q1 2008	15,132	13,476	13,281	1.45%	1.13%	(0.12)%
Q2 2008	25,137	37,976	--	1.22%	0.31%	0.19%
Q3 2008	35,454	15,193	--	1.54%	1.16%	0.41%
Q4 2008	31,955	30,072	--	1.58%	0.96%	0.22%
Total	$149,408	$118,711

As presented in the table above, the cumulative loss rate since the beginning of 2007 was $118.7 million, or 2.21%, of beginning loans as calculated in the table below:

Cumulative loss rate

(Dollars in thousands)

Cumulative net charge-offs – 2007 & 2008                                $118,711

Gross loan balance, December 31, 2006                                  $5,361,862

Cumulative charge-off rate – 2007 & 2008                        2.21%

Total construction loans decreased 23% from December 31, 2007. Within the construction loan portfolio, the residential development loan segment is $384 million, or 6% of the total loan portfolio. This segment has decreased $290 million, or 43%, from December 31, 2007. Oregon/Washington residential development loans total $227 million, a decrease of 42% from a year ago. California residential development loans total $157 million, a decrease of 44% from a year ago.

The following is a geographic distribution of the residential development portfolio as of December 31, 2008:

Residential development loans
(Dollars in thousands)					Non-	Accruing
				% change	accrual	loans
	Balance	Balance	Balance	from	loans	balance
	12/31/07	9/30/08	12/31/08	12/31/07	12/31/08	12/31/08
Northwest Oregon	$237,780	$152,686	$134,506	(43)%	$18,720	$115,786
Central Oregon	57,933	37,213	31,186	(46)%	15,846	15,340
Southern Oregon	50,437	38,048	33,850	(33)%	4,583	29,267
Washington	45,206	34,327	27,531	(39)%	648	26,883
Greater Sacramento	167,245	126,629	109,181	(35)%	33,374	75,807
Northern California	115,604	66,414	47,905	(59)%	14,041	33,864

Total	$674,205	$455,317	$384,159	(43)%	$87,212	$296,947
% of total loan portfolio	11%	7%	6%			5%

Quarter change $	$(90,167)	$(46,348)	$(71,158)
Quarter change %	(12)%	(9)%	(16)%

The remaining $525 million in construction loans are commercial construction projects. These commercial construction loans are uniquely different from the residential development loans and are performing with only $0.6 million in loans past due 30-89 days. Total non-performing assets related to commercial construction loans were $17.8 million at December 31, 2008. All non-accrual loans were written down to their net realizable values at year end.

Net interest margin

The Company reported a tax equivalent net interest margin of 4.02% for the fourth quarter of 2008, compared to 4.12% for the third quarter of 2008, and 4.00% for the third quarter of 2007. The decrease in net interest margin from the third quarter of 2008 resulted primarily from interest reversals on loans of $2.1 million, or 11 basis points. The cost of interest bearing deposits was 17 basis points lower than the third quarter of 2008.

Mortgage servicing rights

Mortgage interest rates decreased significantly late in the fourth quarter of 2008, resulting in the Company recognizing a $3.0 million decline in value of the MSR asset based on higher go-forward refinancing expectations. On December 31, 2008, the MSR asset was valued at 0.86% of the total serviced loan portfolio.

Loss on investment securities

During the fourth quarter of 2008, the Company recognized a net loss of $0.1 million on investment securities. This represented an other than temporary impairment charge related to non-agency mortgage-backed securities in the held to maturity classification of $1.6 million, offset by gains on sale of investments of $1.5 million. During the third quarter of 2008, the Company reclassified the non-agency mortgage-backed security portfolio from investment securities available for sale to investment securities held to maturity. At December 31, 2008, the non-agency mortgage backed security portfolio totaled $11.3 million, or 0.9% of the total investment portfolio.

Fair value of junior subordinated debentures

The Company recognized a gain on the fair value of junior subordinated debentures of $8.8 million during the fourth quarter of 2008. This fair value gain was based upon reductions in market interest rates, which will result in lower forecasted cash outflows in the future. The Company utilizes a pricing service along with internal models to determine the valuation of this liability. The majority of the gain relates to the $61.8 million of junior subordinated debentures issued in the third quarter of 2007, which carry interest rate spreads of 135 and 275 basis points over the 3 month LIBOR. As of December 31, 2008, the credit adjusted interest spread for potential new issuances was forecasted to be significantly higher. The difference between spreads represents the gain in fair value of the Company’s junior subordinated debentures compared to potential new instruments in the market. This fair value adjustment will reverse and be recognized as a reduction in non-interest income over the remaining period to maturity of the related instrument. As of December 31, 2008, the total par value of junior subordinated debentures carried at fair value was $134.0 million, and the fair value was $92.5 million.

Non-interest expense

Total non-interest expense for the fourth quarter of 2008 was $53.6 million, compared to $56.3 million for the third quarter of 2008, a decrease of $2.7 million, or 5%. The decrease on a sequential quarter basis related primarily to a VISA litigation accrual reversal as discussed later in this report.

Balance sheet

Total consolidated assets as of December 31, 2008 were $8.6 billion, compared to $8.3 billion a year ago. Total gross loans and leases, and deposits, were $6.1 billion and $6.6 billion, respectively, as of December 31, 2007 and 2008.

Total loans declined $30 million during the fourth quarter. Total gross loan fundings during the fourth quarter of 2008 were $350 million, which were offset by payoffs of previously funded loans of $350 million, and net charge-offs of $30 million, resulting in the overall decline of $30 million in loans during the fourth quarter.

Total deposits increased $95 million, or 1%, during the fourth quarter. The growth during the quarter occurred in time deposits, coming from money market and savings accounts, based on customer preference for higher rate deposits given the significant decline in market interest rates.

Based on the increase in deposits during the quarter, short-term borrowings were reduced by $40 million.

Goodwill

During the fourth quarter of 2008, the Company recognized goodwill impairment of $1.0 million related to its retail brokerage subsidiary. Remaining goodwill associated with this segment was $2.7 million as of December 31, 2008.

Based on continued market volatility and the drop in price of the Company’s common stock subsequent to year-end, the Company is currently analyzing the value of goodwill within its community banking segment related to its prior acquisitions, to determine whether the value of goodwill has been impaired. Any potential goodwill impairment could be material to reported earnings, but would be a non-cash charge and have no effect on the Company’s cash balances, liquidity or tangible equity. In addition, because goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company’s well-capitalized regulatory capital ratios would not be affected by this potential non-cash expense. The Company anticipates the analysis will be completed prior to filing the Annual Report on Form 10-K with the Securities and Exchange Commission by early March 2009.

Capital

As of December 31, 2008, total shareholders’ equity was $1.5 billion, comprised of $202 million in preferred stock (par value of $214.2 million issued to the U.S. Treasury on November 14, 2008 and described below), and common stock of $1.3 billion. Book value per common share was $21.36, tangible book value per share was $8.76 and tangible equity to assets was 6.72%. These measures increased during the fourth quarter of 2008 related primarily to a $23.8 million increase in unrealized gains on the investment security portfolio, net of tax, along with the sale of 2.2 million warrants in connection with the sale of preferred stock.

The Company’s estimated total risk-based capital ratio as of December 31, 2008 is 14.61%, and has increased from 11.30% as of September 30, 2008, and 10.89% as of December 31, 2007. Our total risk-based capital level is in excess of the regulatory definition of “well capitalized” of 10.0%. The increase during the quarter related to the recognition of net income, continued management of risk-weighted assets, and the sale of preferred stock. This capital ratio as of December 31, 2008 is an estimate pending completion and filing of the Company’s regulatory reports.

Excluding the sale of preferred stock during the fourth quarter of 2008, the Company’s total risk-based capital ratio as of December 31, 2008 would have been 11.68%, increased from 11.30% as of September 30, 2008, and 10.89% as of December 31, 2007.

On November 14, 2008, in exchange for an aggregate purchase price of $214.2 million, Umpqua Holdings Corporation issued and sold to the United States Department of the Treasury (U.S. Treasury) pursuant to the TARP Capital Purchase Program the following: (i) 214,181 shares of the Company's newly designated Fixed Rate Cumulative Perpetual Preferred Stock, Series A, no par value per share, with a liquidation preference of $1,000 per share ($214,181,000 liquidation preference in the aggregate) and (ii) a warrant to purchase up to 2,221,795 shares of the Company's common stock, no par value per share, at an exercise price of $14.46 per share, subject to certain anti-dilution and other adjustments. The warrant may be exercised for up to ten years after it was issued.

In connection with the issuance and sale of the Company's securities, the Company entered into a Letter Agreement including the Securities Purchase Agreement - Standard Terms, dated November 14, 2008, with the U.S. Treasury (the "Agreement"). The Agreement contains limitations on the payment of quarterly cash dividends on the Company's common stock in excess of $0.19 per share, and on the Company's ability to repurchase its common stock. The Agreement also grants registration rights to the holders of the Series A Preferred Stock, the Warrant and the common stock to be issued under the Warrant and subjects the Company to executive compensation limitations included in the Emergency Economic Stabilization Act of 2008.

The Series A Preferred Stock will bear cumulative dividends at a rate of 5% per annum for the first five years and 9% per annum thereafter, in each case, applied to the $1,000 per share liquidation preference, but will only be paid when, as and if declared by the Company's board of directors out of funds legally available therefor. The Series A Preferred Stock has no maturity date and ranks senior to our common stock (and on an equivalent basis with the Company's other authorized series of preferred stock, of which no shares are currently outstanding) with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company.

There were no repurchases of common stock during 2008. The total remaining available common shares authorized for repurchase is approximately 1.5 million as of December 31, 2008.

Subsequent Event – Assumption of deposits

On January 16, 2009, the Federal Deposit Insurance Corporation (FDIC) placed the Bank of Clark County, Vancouver, Washington, into receivership. Umpqua Bank assumed the insured non-brokered deposit balances from the FDIC, which totaled $183.9 million, at no premium. In connection with the assumption, Umpqua Bank acquired certain assets totaling $23.2 million, primarily cash and marketable securities, with the difference of $160.9 million representing funds received directly from the FDIC. Through this agreement, Umpqua Bank now operates two additional store locations in Vancouver, Wash. The agreement includes the ability to purchase optional loan pools for up to 30 days following closing. In addition, the FDIC is reimbursing Umpqua Bank for all overhead costs related to the acquired Bank of Clark County operations for 90 days following closing, while Umpqua Bank will pay the FDIC a minimal servicing fee per assumed deposit account.

Visa related activity In March 2008, Visa completed its initial public offering. Umpqua Bank and certain other Visa member banks are shareholders in Visa. Following the initial public offering, the Company received $12.6 million in proceeds from the offering, as a mandatory partial redemption of 295,377 shares, reducing the Company’s holdings from 764,036 shares to 468,659 shares of Class B common stock. Using proceeds from this offering, Visa established a $3.0 billion escrow account to cover the resolution of pending litigation and related claims. The partial redemption proceeds are reflected in non-interest income in the first quarter of 2008.

In connection with Visa’s establishment of the litigation escrow account, the Company reversed a $5.2 million reserve in the first quarter of 2008, reflected as a reduction of non-interest expense. This reserve was created in the fourth quarter of 2007, pending completion of the Visa initial public offering, as a charge to non-interest expense.

In October 2008, Visa announced that it had reached a settlement with Discover Card related to an antitrust lawsuit, and that it had established an additional reserve related to the settlement with Discover Card that has not already been funded into the escrow account. In connection with this settlement, the Company recorded, in the third quarter of 2008, a liability and corresponding expense of $2.1 million pre-tax, for its proportionate share of that liability. In December, this liability and expense was reversed when VISA deposited sufficient funds into the escrow account to cover the remaining amount of the settlement. The Company is not a party to the Visa litigation and its liability arises solely from the Bank’s membership interest in Visa.

The deposit of funds into the escrow account in December has the effect of a repurchase of Class A common share equivalents from the Class B shareholders and further reduces the conversion ratio applicable to Class B common stock outstanding from 0.7143 per Class A share to 0.6296 per Class A share.

The remaining unredeemed shares of Visa Class B common stock are restricted and may not be transferred until the later of (i) three years from the date of the initial public offering, or (ii) the period of time necessary to resolve the covered litigation. If the funds in the escrow account are insufficient to settle all the covered litigation, Visa may sell additional Class A shares, use the proceeds to settle litigation, and further reduce the conversion ratio. If funds remain in the escrow account after all litigation is settled, the Class B conversion ratio will be increased to reflect that surplus.

As of December 31, 2008, the value of the Class A shares was $52.45 per share. The value of unredeemed Class A equivalent shares owned by the Company was $15.5 million as of December 31, 2008, and has not been reflected in the accompanying financial statements.

About Umpqua Holdings Corporation

Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 150 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements about our ability to improve financial performance when the economy stabilizes; expecting no additional material loss from existing non-accrual loans; a higher level of refinancing in the mortgage servicing portfolio; potential goodwill impairment and lower LIBOR rates. Specific risks that could cause results to differ from the forward-looking statements are set forth in our filings with the SEC and include, without limitation, economic conditions that continue to deteriorate beyond our ability to respond, our ability to realize expected recoveries of non-accrual loans; an increase in mortgage interest rates that would impact the MSR valuation; the results of an impairment analysis, which could result in a material decrease in reported earnings; management’s ability to successfully operate in this economic environment and no decrease in LIBOR rates, which could cause future recognition of loss in the fair value of our junior subordinated debentures.

Contact Information:

Lani Hayward

(503) 727-4132

lanihayward@umpquabank.com

Eve Callahan, Lane PR

(503) 546-7867

eve@lanepr.com

1/28/2009

Portland, Ore

UMPQUA HOLDINGS CORPORATION NOMINATES THREE TO
BOARD OF DIRECTORS

Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., has nominated Scott Grout, Jose Hermocillo and Frank Whittaker to stand for ...

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Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., has nominated Scott Grout, Jose Hermocillo and Frank Whittaker to stand for election to its board of directors at the annual meeting of shareholders in April. The new members bring extensive experience in leading and advising businesses and are reflective of Umpqua’s growing geographic footprint. “Scott, Jose, and Frank have tremendous experience across multiple markets and I’m pleased they’ve agreed to join Umpqua’s board of directors,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “The diversity of their geographic and industry expertise will add great depth to our current board and I look forward to working with them.” Scott Grout: Building a Track Record in Technology Companies Scott Grout has a track record of experience in performance improvement, market share gains, capital raising and strategic acquisitions. He currently heads RadiSys Corporation, a $300 million publicly traded company where he has served as CEO since 2002 and is a member of their board. Prior to RadiSys, Grout served four years as CEO of Chorum, where he also served on the board of directors, and he worked for Lucent Technologies and AT&T Network Systems. With a bachelor’s degree engineering/operations research from the University of Wisconsin, Grout went on to earn a Master of Business Administration from the Sloan School of Management at MIT. He resides in Northwest Portland, Ore Jose Hermocillo: A History in Public Affairs Jose Hermocillo brings a public affairs and policy perspective that is based on more than 30 years of experience with corporations, industry groups, coalitions, nonprofits and governments. Hermocillo is senior vice president and managing director of APCO Worldwide’s Sacramento office and is one of California’s leading public affairs practitioners, specializing in legislative and regulatory matters in energy, the environment, land use, healthcare and labor relations. Previously, he served as a partner in a political consulting and public affairs firm, and he has also worked as a practicing attorney, lobbyist for a labor union, and policy committee consultant in the California State Senate. Hermocillo earned a Bachelor of Arts in government from Pomona College, a Juris Doctor from the University of the Pacific’s McGeorge School of Law, and a certificate in trial and appellate advocacy from Hastings College of Law, University of California. Hermocillo resides in Sacramento, Calif Frank R. J. Whittaker: Cultivating Experience in the News Industry Frank Whittaker brings a wealth of strategic planning and management experience cultivated in the newspaper industry. Whittaker is vice president of operations for The McClatchy Company, overseeing operations for five newspapers in California, three in Florida and one in Kentucky. Previously, he was general manager and then president of The Sacramento Bee, following 13 years with The Toronto Star in Canada. Whittaker earned a Bachelor of Arts degree from the University of Toronto in Ontario and completed the Stanford Executive Program at Stanford University in Palo Alto, Calif. Whittaker resides in Sacramento, Calif. About Umpqua Holdings Corporation Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 150 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com.
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

1/26/2009

Portland, Ore.

UMPQUA HOLDINGS CORPORATION HIRES
CHIEF INFORMATION OFFICER

Colin Eccles to Oversee Information Technology and Innovative Delivery Systems

PORTLAND, Ore. – Jan. 26, 2009 – Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank, has appointed Colin Eccles to chief information officer. In this role, Eccle ...

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PORTLAND, Ore. – Jan. 26, 2009 – Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank, has appointed Colin Eccles to chief information officer. In this role, Eccles will ensure that technology is incorporated into the bank’s culture and innovative delivery of products and services. Eccles will be based in Portland, Ore., and will be responsible for technology enhancement of all bank channels and back end systems, including network services, data processing, item processing, information systems, electronic banking and ATM delivery. “Colin has tremendous experience in technology and banking and will be a valuable asset to Umpqua,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “At Umpqua, technology and innovation are key components of our culture. We will look to Colin to advance Umpqua’s delivery systems and to help generate fresh ideas as we continuously improve our customers’ banking experiences.” Eccles has 28 years of experience in the banking and technology industries, and spent the last seven years working at Washington Mutual as chief information officer for the company’s retail bank technology organization. While at Washington Mutual, Eccles was based in Seattle and was responsible for all technical support of retail delivery channels, transaction processing and technical business operations. Eccles received his Bachelor of Science at Witwatersrand University and a Master of Business Leadership from the University of South Africa. About Umpqua Holdings Corporation Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 150 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com. # # #
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

1/21/2009

Eureka, CA

UMPQUA BANK HELPS KIDS SAVE $2 MILLION
Learn To Earn Program Teaches Children to
Save, Share, and Spend Responsibly

Umpqua Bank’s Learn to Earn program, which offers on-campus banking, complete with child savings accounts and money-management lessons, to students in grades kindergarten through eight ...

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Umpqua Bank’s Learn to Earn program, which offers on-campus banking, complete with child savings accounts and money-management lessons, to students in grades kindergarten through eighth at nearly 100 Northern California schools, added eight new schools, four additional Umpqua Bank stores and almost 1,200 new students to its savings program in the first four months of the 2008-2009 school year. With this growth, Umpqua Bank helped students save more than $552,000 since Sept. 1, 2008; increasing the bank’s total active Learn to Earn student savings balances to nearly $2 million. “Umpqua Bank’s Learn to Earn program is designed to encourage students, along with support from their parents and teachers, to form responsible money-management habits early on,” said Lani Hayward, executive vice president of creative strategies for Umpqua Bank. “Teaching children to save, share, and spend money wisely are important, lifelong skills that will be invaluable both for children and their communities, and Umpqua is excited to be part of the process.” “There’s never been a better time to teach children to save and learn the importance of financial literacy. Children are exposed to the challenges facing our economy either through the media, their families or day-to-day interaction,” said Molly Barnum, a kindergarten teacher at John McManus Elementary in Chico, Calif. “Children understand that our nation is in an uncomfortable position, but not necessarily why. Umpqua’s Learn to Earn program gives students, parents, and teachers the tools and opportunity to talk about money-management in a way that kids understand and enjoy.” John McManus Elementary has been active in Umpqua Bank’s Learn to Earn program since October 2007. Between Sept. 1 and Dec. 31, 2008, Umpqua Bank’s Learn to Earn recorded the following growth: • Added eight additional Learn to Earn schools. • Opened 1,162 new Learn to Earn child savings accounts; an increase from 1,091 accounts opened during the same timeframe in 2007. • Increased total Learn to Earn child savings accounts by 13.2 percent for a total of 7,284 active accounts. • Grew Learn to Earn child saving account balances by more than $552,000; increasing total active student account balance to nearly $2 million. For additional information on Learn to Earn, please visit www.umpquabank.com or e-mail community@umpquabank.com. About Learn to Earn Learn to Earn (LTE) was developed in 1996 in Arcata, Calif., to teach children the value of saving money and to encourage life-long money management skills in grades kindergarten through eighth. The program offers a child savings account designed just for students that can be opened for as little as $1.00 and earns interest immediately. LTE uses immediate rewards, games, ongoing events and in-class curriculum to make financial literacy fun and easy to understand. The program currently provides children with the convenience of on-campus banking in nearly 100 schools and serves more than 7,000 student accounts. About Umpqua Bank Umpqua Bank, headquartered in Roseburg, Ore., is a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ) and has 150 locations between Napa, Calif. and Bellevue, Wash., along the Oregon and Northern California Coast and in both Central California and Central Oregon. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including the Wall Street Journal, New York Times, BusinessWeek, Fast Company and CNBC. The company, recognized for the second year in a row, ranked 13th on Fortune Magazine’s 2008 list of the country’s “100 Best Companies To Work For.” Umpqua Holdings also owns retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit http://www.umpquabank.com/. # # #
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

1/20/2009

Portland, Ore.

UMPQUA BANK ASSUMES
INSURED NON BROKERED DEPOSITS OF BANK OF CLARK COUNTY FROM FDIC

Umpqua Puts Resources into Place for Bank of Clark County Customers
and Employees

PORTLAND, Ore., Jan. 20, 2008 – Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., announced that Umpqua Bank wil ...

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PORTLAND, Ore., Jan. 20, 2008 – Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., announced that Umpqua Bank will provide banking services to former Bank of Clark County deposit customers. On Jan. 16, 2009, Bank of Clark County, in Vancouver, WA was closed by the Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank to assume the insured non brokered deposits of the Bank of Clark County. Umpqua Bank has worked closely with the former Bank of Clark County employees to ensure customers will be able to conduct business as usual, receiving full access to their insured deposits, ATM/Debit cards, internet banking, bill pay service and other electronic banking services. “As you can imagine, we are disappointed to see a community bank in our region fail,” said Ray Davis, chief executive officer of Umpqua Holdings Corporation. “Umpqua is a financially sound community bank with an established presence in Portland and Vancouver, and I’m pleased we are positioned to assist by taking over the insured deposits and the day-to-day operations of Bank of Clark County. We are committed to making this transition a smooth one for Bank of Clark County customers and employees, and we welcome them to Umpqua Bank.” To help customers with the transition, both Umpqua Bank and FDIC representatives will be on-site at the two former Bank of Clark County locations the week of Jan. 20 to address customer needs. Under an agreement with the FDIC, Umpqua is assuming approximately $186 million dollars in deposits, at no premium. The deal will increase Umpqua’s assets to approximately $8.8 billion, and deposits to approximately $6.8 billion. The FDIC will pay all operating costs of the former Bank of Clark County for 90 days and Umpqua has agreed to pay a servicing fee on assumed deposit accounts for that same period. Both former Bank of Clark County branches will begin operating under the Umpqua Bank name today. The Bank of Clark County branches, located at 1400 Washington Street, Suite 200 in downtown Vancouver and 16409 SE 1st St., will be added to Umpqua Bank’s network of 148 Northern California, Oregon and Washington locations. About Umpqua Holdings Corporation Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 150 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Banks Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com.
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

1/13/2009

Portland, Ore.

UMPQUA BANK ANNOUNCES NEW ASSET MANAGEMENT DIVSION
Hires Kelly Johnson as Executive Vice President

PORTLAND, Ore. – Jan. 13, 2009 – Umpqua Bank, a subsidiary of Umpqua Holdings Corp. (NASDAQ: UMPQ), announced today the start of their new asset management division. The division will ...

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PORTLAND, Ore. – Jan. 13, 2009 – Umpqua Bank, a subsidiary of Umpqua Holdings Corp. (NASDAQ: UMPQ), announced today the start of their new asset management division. The division will be charged with evaluating public and private investment opportunities that help strengthen local economies and deliver returns for Umpqua’s clients. To lead this new initiative, Umpqua has hired Kelly Johnson as executive vice president of asset management. Johnson will be responsible for building and managing a team that will oversee asset management and trust services including oversight of the bank’s private client services group. The addition will complement services already offered by the bank’s affiliate brokerage firm Strand, Atkinson, Williams and York. Johnson is based in Portland, Ore., and reports to Umpqua Holdings Corporation president and CEO, Ray Davis. “With the maturing baby boomer demographic as well as other opportunities we’ve seen in the markets we serve, the development of this division is both prudent and timely,” said Davis. “I am extremely pleased to have Kelly at the helm to develop our asset management division. He adds significant value to our private client services team and its ability to provide quality results for our clients. Kelly has the leadership and experience to take us to the next level.” Johnson, who has worked in the investment and securities industry since 1986, was previously employed as a senior managing director for RBC Wealth Management, overseeing wealth management in Oregon, Central Washington and Reno, Nev. His experience includes strategic planning, personnel management, market analysis and sales and marketing. Johnson has a bachelor’s degree in business management and a master’s degree in business administration from the Carlson School of Management from the University of Minnesota. About Umpqua Holdings Corporation Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 148 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com.
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

1/8/2009

PORTLAND, Ore.

Umpqua Holdings Corporation Schedules Fourth Quarter Earnings
Conference Call for Jan. 29, 2009

Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., will conduct a quarterly earnings conference call Thursday, Ja ...

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Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., will conduct a quarterly earnings conference call Thursday, Jan. 29, 2009 at 10:00 a.m. PDT (1:00 p.m. EDT) during which the Company will discuss fourth quarter and 2008 year-end results and provide an update on recent activities. There will be a question-and-answer session following the presentation. Shareholders, analysts and other interested parties are invited to join the call by dialing (800) 752-8363 a few minutes before 10:00 a.m. The conference ID is 59372588. A re-broadcast will be available approximately two hours after the conference call by dialing (800) 642-1687 or by visiting www.umpquaholdingscorp.com. Information to be discussed in the teleconference will be available on the company's Web site in the morning prior to the call. About Umpqua Holdings Corporation Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 148 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com.
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

12/18/2008

Portland, Ore

UMPQUA HOLDINGS CORPORATION NAMES JOHN NOBLE PRESIDENT OF STRAND, ATKINSON, WILLIAMS AND YORK

Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., has named John Noble president of Strand, Atkinson, Williams & ...

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Umpqua Holdings Corporation (NASDAQ: UMPQ), parent company of Umpqua Bank and Strand, Atkinson, Williams & York Inc., has named John Noble president of Strand, Atkinson, Williams & York. As president, Noble will be responsible for all Strand operations, including business development. Additionally, he will work with Umpqua Bank to expand the reach of the firm’s investment and financial planning offerings throughout Umpqua’s markets. “John is a seasoned leader with tremendous financial services and investment experience,” said Ray Davis, president and CEO of Umpqua Holdings Corporation. “He is a respected leader within the industry and his extensive background clearly illustrates his ability to guide consumers and corporations through smart, customized investment decisions. I am confident that John will be a tremendous asset to Strand’s advisors, customers and the community as a whole.” Noble has more than 25 years of experience in the financial services industry. He comes to Strand from UBS Financial Services where he served as director and executive vice president for its Oregon branches. Prior to that, John was employed by Smith Barney for more than 20 years where he held several managerial positions, including senior vice president and branch office manager. Noble and his family live in Portland, Ore., where he is an active member of the community. He was instrumental in establishing the first Portland Metro program for the National Academy of Finance, which partners with public high schools to provide investment and financial planning curriculum for students. He also served as chairman of the Securities Industry Regulatory Council on Continuing Education. About Umpqua Holdings Corporation Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative use of technology, and distinctive banking solutions. Umpqua Bank has 148 locations between Napa, Calif., and Bellevue, Wash., along the Oregon and Northern California Coast and in Central Oregon. Umpqua Holdings also owns a retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. For more information, visit www.umpquaholdingscorp.com
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

12/9/2008

Portland, OR

UMPQUA BANK NAMED MOST ADMIRED FINANCIAL SERVICES COMPANY IN OREGON

Umpqua Bank, a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ), was honored at The Portland Business Journal’s fourth annual Oregon’s Most Admired Companies luncheon on Dec. 9 ...

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Umpqua Bank, a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ), was honored at The Portland Business Journal’s fourth annual Oregon’s Most Admired Companies luncheon on Dec. 9. Umpqua Bank was named Oregon’s Most Admired Financial Services Company by Oregon CEOs. More than 2,000 Oregon CEOs were asked to rank the greatest companies in Oregon based on innovation, customer service and community involvement. Award recipients included companies in the following eight industry categories: agriculture and forest products, commercial real estate, financial services, health care, nonprofits, professional services, technology and traditional manufacturing as well as the most admired company across all industries. “To be recognized as a strong, responsible and respected company is especially meaningful during these challenging economic times,” said Ray Davis, president and CEO of Umpqua Bank. “The tenants of this award – innovation, customer service and community involvement – are also Umpqua Bank’s core principles and our success as a company is the result of the many contributions made by Umpqua associate across the company.” Oregon’s Most Admired Companies is an annual Portland Business Journal event. Hosted by publisher Craig Wessel, the event is one of the publication’s business programs aimed at recognizing Oregon’s leading businesses. About Umpqua Bank Umpqua Bank, headquartered in Roseburg, Ore., is a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ) and has 148 locations between Napa, Calif. and Bellevue, Wash., along the Oregon and Northern California Coast, and in both Central California and Central Oregon. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including the Wall Street Journal, New York Times, BusinessWeek, Fast Company and CNBC. The company, recognized for the second year in a row, ranked 13th on Fortune Magazine’s 2008 list of the country’s “100 Best Companies To Work For.” Umpqua Holdings also owns retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. Umpqua Bank is an Equal Housing Lender. For more information, visit http://www.umpquabank.com/. ###
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com

11/19/2008

Auburn, CA

UMPQUA BANK’S WISH UPON A STAR HELPS HOLIDAY DREAMS COME TRUE
Umpqua Bank and The Voice of the Foothills AM 950 KAHI Accept Holiday Wish Nominations in the Auburn Area

Umpqua Bank is launching its third year of the Wish Upon a Star program in the Auburn area. The effort grants holiday wishes to individuals and families in need throughout California a ...

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Umpqua Bank is launching its third year of the Wish Upon a Star program in the Auburn area. The effort grants holiday wishes to individuals and families in need throughout California and Oregon, delivering more than $185,000 in wishes since 1998 when the program first started. This program is delivered in partnership with radio station The Voice of the Foothills AM 950 KAHI. “As a community bank we have an obligation to help our communities,” said Ray Davis, president and CEO of Umpqua Bank. “Through Wish Upon a Star, Umpqua is able to lend support to families facing difficult circumstances within a very challenging economic environment. We hope the program lessens their burden and inspires others to assist however they can this holiday season.” Since its inception, Umpqua Bank’s Wish Upon a Star program has selected and fulfilled more than 270 holiday wishes. Past wishes include paying for pediatric medical travel costs, replacing a single father’s failing appliances, and providing heat through the winter to a family struggling with unemployment and medical bills. Nominate a Holiday Wish Now through Friday, Dec. 12, all community members are encouraged to nominate deserving friends, family members and neighbors. Wish Upon a Star nominations should explain why the nominee deserves to have a holiday wish granted and provide contact information including a daytime phone number for the wish nominator and the wish nominee. Nomination submissions should be mailed to: Wish Upon a Star KAHI, 985 Lincoln Way, Suite 103, Auburn, Calif., 95603. Nominations can also be faxed to 530-885-0166 or submitted via email at Kahi@kahi.com. Wishes Granted On Air All Umpqua Bank Wish Upon a Star wishes will be granted on air, weekdays between Dec. 8 to Dec. 19. Listeners can tune in to The Voice of the Foothills AM 950 KAHI at 4:20 p.m. to hear holiday wishes come true. About Umpqua Bank Umpqua Bank, headquartered in Roseburg, Ore., is a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ) and has 148 locations between Napa, Calif. and Bellevue, Wash., along the Oregon and Northern California Coast, and in both Central California and Central Oregon. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including the Wall Street Journal, New York Times, BusinessWeek, Fast Company and CNBC. The company, recognized for the second year in a row, ranked 13th on Fortune Magazine’s 2008 list of the country’s “100 Best Companies To Work For.” Umpqua Holdings also owns retail brokerage subsidiary Strand, Atkinson, Williams & York Inc., which has locations in Umpqua Bank stores and in dedicated offices throughout Oregon and Southwest Washington. Umpqua Bank's Private Client Services Division provides tailored financial services and products to individual customers. Umpqua Holdings Corporation is headquartered in Portland, Ore. Umpqua Bank is an Equal Housing Lender. For more information, visit http://www.umpquabank.com/.
Contact Information:
Lani Hayward	(503) 727-4132	lanihayward@umpquabank.com
Eve Callahan, Lane PR	(503) 546-7867	eve@lanepr.com