Umpqua Reports Quarterly And Annual Results

PORTLAND, Ore., Jan. 22, 2020 /PRNewswire/ -- Umpqua Holdings Corporation UMPQ (the "Company") reported net income of $83.8 million for the fourth quarter of 2019, compared to $84.5 million for the third quarter of 2019 and $80.3 million for the fourth quarter of 2018. Earnings per diluted common share were $0.38 for the fourth quarter of 2019, compared to $0.38 for the third quarter of 2019 and $0.36 for the fourth quarter of 2018.

(PRNewsfoto/Umpqua Holdings Corporation)

For the twelve months ended December 31, 2019, the Company reported net income of $354.1 million, or $1.60 per diluted common share, up from $316.3 million, or $1.43 per diluted common share, for the twelve months ended December 31, 2018.

"I am very pleased with the continued progress we made in 2019 on executing against our ambitious Next Gen goals," said Cort O'Haver, president and CEO of Umpqua Holdings Corporation. "Annual loan and lease growth of $773 million in addition to deposit growth of $1.3 billion shows our emphasis on balanced growth has been effective. We took the opportunity to reposition a portion of the balance sheet in the fourth quarter by selling loans with lower yields while reducing higher cost time deposits. We will continue to focus on balanced growth, executing on our expense initiatives and investing in strategic digital initiatives in 2020, which will drive sustained profitability and long-term shareholder value."

Notable items that impacted the fourth quarter 2019 financial results included:

$10.4 million loss on the fair value of the MSR asset, compared to the net $4.2 million gain in the prior quarter and the $13.1 million loss in the same period of the prior year.
$5.0 million gain on the fair value of the debt capital market swap derivatives attributable to the increase in long-term interest rates during the quarter. This compares to the $4.6 million loss in the prior quarter and the$3.0 million loss in the same period of the prior year.
$1.9 million of exit or disposal costs, related primarily to planned store consolidations, compared to $2.0 million in the prior quarter and $0.8 million in the same period of the prior year.

Full-Year 2019 Highlights (compared to prior year):

Gross loan and lease growth of $773.0 million, or 4%;
Deposit growth of $1.3 billion, or 6%;
Net interest income decreased by $18.0 million, driven primarily by a decrease in short and long-term interest rates during the annual period which led to a decline in net interest margin, partially offset by an increase in loans and leases;
Provision for loan and lease losses increased by $16.6 million primarily due to loan and lease growth and a slightly higher net charge-off ratio;
Non-interest income increased by $60.4 million, driven primarily by the $76.3 million net gain recorded from the sale of the Visa Class B stock and other debt securities, partially offset by a reduction in net residential mortgage banking revenue;
Non-interest expense decreased by $20.4 million, driven primarily by lower salaries and benefits expense, lower occupancy and equipment expense, lower professional fees, and lower FDIC assessment expense, partially offset by a higher loss on other real estate owned (OREO);
Paid dividends of $0.84 per common share (versus $0.82 per share in the prior year) and repurchased 300,000 shares of common stock; and
Book value increased by 6%, or $1.17 per common share, and tangible book value¹ increased by 12%, or $1.20 per common share.

Fourth Quarter 2019 Highlights (compared to prior quarter):

Gross loan and lease balance diminishment of $325.1 million, or 2%, partially due to $117.9 million in non-SBA loan sales closed during the quarter. Average loan and lease balances increased $208.3 million, or 1%, compared to the prior quarter;
Deposit growth of $46.8 million;
Net interest income decreased by $2.2 million, attributable to a lower average yield on loans and leases, partially offset by lower funding costs;
Provision for loan and lease losses decreased by $7.0 million, driven by lower net charge offs of $14.9 million during the quarter compared to $18.0 million in the prior quarter;
Non-interest income decreased by $4.8 million reflecting the linked quarter decline in the fair value of the MSR asset, partially offset by the linked quarter increase in the fair value of debt capital market swap derivatives;
Non-interest expense decreased by $0.1 million, driven by lower state and local business taxes, lower marketing expense, and a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense;
Non-performing assets to total assets decreased by two basis points to 0.23%;
Estimated total risk-based capital ratio of 13.9% and estimated Tier 1 common to risk weighted assets ratio of 11.2%; and
Declared quarterly cash dividend of $0.21 per common share.

Balance Sheet

Total consolidated assets were $28.8 billion as of December 31, 2019, compared to $28.9 billion as of September 30, 2019 and $26.9 billion as of December 31, 2018. Including secured off-balance sheet lines of credit, total available liquidity was $11.4 billion as of December 31, 2019, representing 40% of total assets and 51% of total deposits.

Gross loans and leases were $21.2 billion as of December 31, 2019, a decrease of $0.3 billion from $21.5 billion as of September 30, 2019. This decrease reflects non-SBA loan sales of $117.9 million consistent with management plans to reposition a portion of the balance sheet by reducing lower yielding loans and leases while also reducing higher cost time deposits.

Total deposits were $22.5 billion as of December 31, 2019, an increase of $46.8 million from $22.4 billion as of September 30, 2019. This increase was primarily attributable to growth in money market and interest bearing demand accounts, partially offset by a seasonal decline in non-interest demand deposits.

Net Interest Income

Net interest income was $226.8 million for the fourth quarter of 2019, down $2.2 million from the prior quarter. This decrease was driven primarily by lower average yields on earnings assets, partially offset by lower funding costs and a higher average balance of loans and leases.

The Company's net interest margin was 3.51% for the fourth quarter of 2019, down 12 basis points from 3.63% for the third quarter of 2019. This decrease was driven primarily by the lower average yields on loans and leases, partially offset by lower funding costs and lower bond premium amortization.

Credit Quality

The allowance for loan and lease losses was $157.6 million, or 0.74% of loans and leases, as of December 31, 2019. The provision for loan and lease losses was $16.3 million for the fourth quarter of 2019, a decrease of $7.0 million from the prior quarter level driven primarily lower net charge-offs. Net charge-offs decreased by 6 basis points from the prior quarter to 0.28% of average loans and leases for the fourth quarter of 2019 (annualized). As of December 31, 2019, non-performing assets decreased to 0.23% of total assets, from 0.25% as of September 30, 2019 and 0.36% as of December 31, 2018.

Non-interest Income

Non-interest income was $83.7 million for the fourth quarter of 2019, down $4.8 million from the prior quarter. This decrease reflects the decline in fair value for the MSR asset, partially offset by the gain on the debt capital market swap derivatives (see notable items above) and the $4.6 million gain related to the sale of loans recorded in the period compared to $1.8 million recorded in the third quarter of 2019.

Net revenue from the origination and sale of residential mortgages was $35.4 million for the fourth quarter of 2019, up $4.0 million from the prior quarter. For-sale mortgage origination volume increased by 26% from the prior quarter, while the home lending gain on sale margin decreased to 3.34% for the fourth quarter of 2019. Of the current quarter's mortgage production, 55% related to purchase activity, compared to 60% for the prior quarter and 80% for the same period in the prior year.

Non-interest Expense

Non-interest expense was $183.4 million for the fourth quarter of 2019, down $0.1 million from the prior quarter level. This decrease was attributable to lower state and local business taxes, lower marketing expense, a lower loss on OREO, partially offset by lower deferred origination costs and higher charitable contribution expense.

Capital

As of December 31, 2019, the Company's book value per common share increased to $19.59 from $19.48 in the prior quarter, and its tangible book value per common share¹ increased to $11.39 from $11.27 in the prior quarter. During the fourth quarter of 2019, the Company declared a dividend of $0.21 per share.

The Company's estimated total risk-based capital ratio was 13.9% and its estimated Tier 1 common equity to risk weighted assets ratio was 11.2% as of December 31, 2019. The Company remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of December 31, 2019 are estimates, pending completion and filing of the Company's regulatory reports.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.

The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

*(Dollars in thousands, except per share data)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018
Total shareholders' equity	$	4,313,915		$	4,289,516		$	4,228,507		$	4,112,326		$	4,056,442
Subtract:
Goodwill	1,787,651			1,787,651			1,787,651			1,787,651			1,787,651
Other intangible assets, net	18,346			19,750			21,155			22,560			23,964
Tangible common shareholders' equity	$	2,507,918		$	2,482,115		$	2,419,701		$	2,302,115		$	2,244,827
Total assets	$	28,846,809		$	28,930,855		$	27,986,075		$	27,355,625		$	26,939,781
Subtract:
Goodwill	1,787,651			1,787,651			1,787,651			1,787,651			1,787,651
Other intangible assets, net	18,346			19,750			21,155			22,560			23,964
Tangible assets	$	27,040,812		$	27,123,454		$	26,177,269		$	25,545,414		$	25,128,166
Common shares outstanding at period end	220,229			220,212			220,499			220,457			220,255

Total shareholders' equity to total assets ratio	14.95		%	14.83		%	15.11		%	15.03		%	15.06		%
Tangible common equity ratio	9.27		%	9.15		%	9.24		%	9.01		%	8.93		%
Book value per common share	$	19.59		$	19.48		$	19.18		$	18.65		$	18.42
Tangible book value per common share	$	11.39		$	11.27		$	10.97		$	10.44		$	10.19

About Umpqua Holdings Corporation

Umpqua Holdings Corporation UMPQ is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada. Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit www.umpquabank.com.

Earnings Conference Call Information

The Company will host its fourth quarter 2019 earnings conference call on Thursday, January 23, 2020, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its fourth quarter and full year 2019 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 9756638. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 9756638. The earnings conference call will also be available as an audiocast, which can be accessed on the Company's investor relations page at www.umpquabank.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 the projected impact of strategic investments. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation, prolonged low interest rate environment; unanticipated weakness in loan demand or loan pricing; deterioration in the economy; lack of strategic growth opportunities or our failure to execute on those opportunities; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives on time and in amounts projected; our ability to successfully develop and market new products and technology; and changes in laws or regulations.

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)

	Quarter Ended										% Change
*(In thousands, except per share data)*	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	262,109	$	266,111	$	264,110	$	258,747	$	254,093	(2)	%	3	%
Interest and dividends on investments:
Taxable	13,361		12,546		10,287		19,956		27,381		6	%	(51)	%
Exempt from federal income tax	1,638		1,727		1,921		2,114		2,135		(5)	%	(23)	%
Dividends	579		599		574		517		538		(3)	%	8	%
Temporary investments and interest bearing deposits	4,343		4,204		4,708		925		2,621		3	%	66	%
Total interest income	282,030		285,187		281,600		282,259		286,768		(1)	%	(2)	%
Interest expense:
Deposits	44,380		45,876		43,591		34,094		30,124		(3)	%	47	%
Securities sold under agreement to repurchase and federal funds purchased	431		448		403		810		185		(4)	%	133	%
Borrowings	5,080		4,238		4,563		3,683		3,326		20	%	53	%
Junior subordinated debentures	5,325		5,652		5,881		5,987		5,743		(6)	%	(7)	%
Total interest expense	55,216		56,214		54,438		44,574		39,378		(2)	%	40	%
Net interest income	226,814		228,973		227,162		237,685		247,390		(1)	%	(8)	%
Provision for loan and lease losses	16,252		23,227		19,352		13,684		17,219		(30)	%	(6)	%
Non-interest income:
Service charges on deposits	16,656		16,627		15,953		15,278		16,035		0	%	4	%
Brokerage revenue	4,027		4,060		3,980		3,810		4,178		(1)	%	(4)	%
Residential mortgage banking revenue, net	34,050		47,000		9,529		11,231		15,150		(28)	%	125	%
Gain (loss) on sale of debt securities, net	2		—		(7,186)		—		—		nm		nm
(Loss) gain on equity securities, net	(84)		257		82,607		695		410		(133)	%	(120)	%
Gain on loan and lease sales, net	4,603		1,762		3,333		769		2,484		161	%	85	%
BOLI income	2,078		2,067		2,093		2,168		2,116		1	%	(2)	%
Other income	22,417		16,739		11,514		11,789		16,438		34	%	36	%
Total non-interest income	83,749		88,512		121,823		45,740		56,811		(5)	%	47	%
Non-interest expense:
Salaries and employee benefits	108,847		106,819		104,049		100,658		102,109		2	%	7	%
Occupancy and equipment, net	36,513		35,446		36,032		36,245		35,949		3	%	2	%
Intangible amortization	1,404		1,405		1,405		1,404		1,542		0	%	(9)	%
FDIC assessments	2,867		2,587		2,837		2,942		2,619		11	%	9	%
Loss (gain) on other real estate owned, net	48		1,188		2,678		(51)		1,125		(96)	%	(96)	%
Other expenses	33,764		36,145		33,414		30,394		35,144		(7)	%	(4)	%
Total non-interest expense	183,443		183,590		180,415		171,592		178,488		0	%	3	%
Income before provision for income taxes	110,868		110,668		149,218		98,149		108,494		0	%	2	%
Provision for income taxes	27,118		26,166		37,408		24,116		28,183		4	%	(4)	%
Net income	$	83,750	$	84,502	$	111,810	$	74,033	$	80,311	(1)	%	4	%

Weighted average basic shares outstanding	220,222		220,285		220,487		220,366		220,247		0	%	0	%
Weighted average diluted shares outstanding	220,671		220,583		220,719		220,655		220,668		0	%	0	%
Earnings per common share – basic	$	0.38	$	0.38	$	0.51	$	0.34	$	0.36	0	%	6	%
Earnings per common share – diluted	$	0.38	$	0.38	$	0.51	$	0.34	$	0.36	0	%	6	%

nm = not meaningful

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)

	Year Ended				% Change
*(In thousands, except per share data)*	Dec 31, 2019		Dec 31, 2018		Year over Year
Interest income:
Loans and leases	$	1,051,077	$	972,114	8	%
Interest and dividends on investments:
Taxable	56,150		76,014		(26)	%
Exempt from federal income tax	7,400		8,368		(12)	%
Dividends	2,269		1,988		14	%
Temporary investments and interest bearing deposits	14,180		8,665		64	%
Total interest income	1,131,076		1,067,149		6	%
Interest expense:
Deposits	167,941		92,685		81	%
Securities sold under agreement to repurchase and federal funds purchased	2,092		506		313	%
Borrowings	17,564		13,604		29	%
Junior subordinated debentures	22,845		21,715		5	%
Total interest expense	210,442		128,510		64	%
Net interest income	920,634		938,639		(2)	%
Provision for loan and lease losses	72,515		55,905		30	%
Non-interest income:
Service charges on deposits	64,514		62,124		4	%
Brokerage revenue	15,877		16,480		(4)	%
Residential mortgage banking revenue, net	101,810		118,235		(14)	%
(Loss) gain on sale of debt securities, net	(7,184)		14		nm
Gain (loss) on equity securities, net	83,475		(1,484)		nm
Gain on loan and lease sales, net	10,467		7,834		34	%
BOLI income	8,406		8,297		1	%
Other income	62,459		67,917		(8)	%
Total non-interest income	339,824		279,417		22	%
Non-interest expense:
Salaries and employee benefits	420,373		425,575		(1)	%
Occupancy and equipment, net	144,236		148,724		(3)	%
Intangible amortization	5,618		6,166		(9)	%
FDIC assessments	11,233		16,094		(30)	%
Loss on other real estate owned, net	3,863		867		346	%
Other expenses	133,717		142,039		(6)	%
Total non-interest expense	719,040		739,465		(3)	%
Income before provision for income taxes	468,903		422,686		11	%
Provision for income taxes	114,808		106,423		8	%
Net income	$	354,095	$	316,263	12	%

Weighted average basic shares outstanding	220,339		220,280		0	%
Weighted average diluted shares outstanding	220,650		220,737		0	%
Earnings per common share – basic	$	1.61	$	1.44	12	%
Earnings per common share – diluted	$	1.60	$	1.43	12	%

nm = not meaningful

Umpqua Holdings Corporation Consolidated Balance Sheets
(Unaudited)

																% Change
*(In thousands, except per share data)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	382,598		$	433,620		$	342,508		$	296,967		$	335,419		(12)	%	14	%
Interest bearing cash and temporary investments	980,158			757,824			691,283			605,841			287,218			29	%	241	%
Investment securities:
Equity and other, at fair value	80,165			64,764			66,358			63,327			61,841			24	%	30	%
Available for sale, at fair value	2,814,682			2,842,076			2,698,398			2,894,778			2,977,108			(1)	%	(5)	%
Held to maturity, at amortized cost	3,260			3,320			3,416			3,478			3,606			(2)	%	(10)	%
Loans held for sale, at fair value	513,431			355,022			356,645			240,302			166,461			45	%	208	%
Loans and leases	21,195,684			21,520,794			20,953,371			20,405,997			20,422,666			(2)	%	4	%
Allowance for loan and lease losses	(157,629)			(156,288)			(151,069)			(144,872)			(144,871)			1	%	9	%
Net loans and leases	21,038,055			21,364,506			20,802,302			20,261,125			20,277,795			(2)	%	4	%
Restricted equity securities	46,463			54,463			43,063			47,466			40,268			(15)	%	15	%
Premises and equipment, net	201,460			203,391			210,285			217,595			227,423			(1)	%	(11)	%
Operating lease right-of-use assets	110,718			108,187			112,752			109,807			—			2	%	nm
Goodwill	1,787,651			1,787,651			1,787,651			1,787,651			1,787,651			0	%	0	%
Other intangible assets, net	18,346			19,750			21,155			22,560			23,964			(7)	%	(23)	%
Residential mortgage servicing rights, at fair value	115,010			151,383			139,780			158,946			169,025			(24)	%	(32)	%
Bank owned life insurance	320,611			318,533			316,435			314,303			313,626			1	%	2	%
Other assets	434,201			466,365			394,044			331,479			268,376			(7)	%	62	%
Total assets	$	28,846,809		$	28,930,855		$	27,986,075		$	27,355,625		$	26,939,781		0	%	7	%
Liabilities:
Deposits	$	22,481,504		$	22,434,734		$	21,819,013		$	21,243,894		$	21,137,486		0	%	6	%
Securities sold under agreements to repurchase	311,308			296,717			308,052			288,944			297,151			5	%	5	%
Borrowings	906,635			1,106,674			821,712			932,420			751,788			(18)	%	21	%
Junior subordinated debentures, at fair value	274,812			267,798			277,028			294,121			300,870			3	%	(9)	%
Junior subordinated debentures, at amortized cost	88,496			88,553			88,610			88,667			88,724			0	%	0	%
Operating lease liabilities	119,429			116,924			121,742			118,520			—			2	%	nm
Deferred tax liability, net	52,928			67,055			57,757			45,202			25,846			(21)	%	105	%
Other liabilities	297,782			262,884			263,654			231,531			281,474			13	%	6	%
Total liabilities	24,532,894			24,641,339			23,757,568			23,243,299			22,883,339			0	%	7	%
Shareholders' equity:
Common stock	3,514,000			3,511,493			3,514,391			3,511,731			3,512,874			0	%	0	%
Retained earnings	770,366			733,059			695,003			629,877			602,482			5	%	28	%
Accumulated other comprehensive income (loss)	29,549			44,964			19,113			(29,282)			(58,914)			(34)	%	(150)	%
Total shareholders' equity	4,313,915			4,289,516			4,228,507			4,112,326			4,056,442			1	%	6	%
Total liabilities and shareholders' equity	$	28,846,809		$	28,930,855		$	27,986,075		$	27,355,625		$	26,939,781		0	%	7	%

Common shares outstanding at period end	220,229			220,212			220,499			220,457			220,255			0	%	0	%
Book value per common share	$	19.59		$	19.48		$	19.18		$	18.65		$	18.42		1	%	6	%
Tangible book value per common share	$	11.39		$	11.27		$	10.97		$	10.44		$	10.19		1	%	12	%
Tangible equity - common	$	2,507,918		$	2,482,115		$	2,419,701		$	2,302,115		$	2,244,827		1	%	12	%
Tangible common equity to tangible assets	9.27		%	9.15		%	9.24		%	9.01		%	8.93		%	0.12		0.34

Umpqua Holdings Corporation
Loan & Lease Portfolio
(Unaudited)

*(Dollars in thousands)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			% Change
	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net	$	3,545,566		$	3,495,555		$	3,537,084		$	3,476,972		$	3,573,065		1	%	(1)	%
Owner occupied term, net	2,496,088			2,566,299			2,396,674			2,449,648			2,480,371			(3)	%	1	%
Multifamily, net	3,514,774			3,479,986			3,341,547			3,302,936			3,304,763			1	%	6	%
Construction & development, net	678,740			771,214			732,932			686,107			736,254			(12)	%	(8)	%
Residential development, net	189,010			191,500			199,421			205,963			196,890			(1)	%	(4)	%
Commercial:
Term, net	2,232,817			2,310,759			2,271,346			2,185,322			2,232,923			(3)	%	0	%
Lines of credit & other, net	1,212,393			1,254,755			1,280,587			1,229,092			1,169,525			(3)	%	4	%
Leases & equipment finance, net	1,465,489			1,485,753			1,449,579			1,378,686			1,330,155			(1)	%	10	%
Residential real estate:
Mortgage, net	4,215,424			4,245,674			3,995,643			3,768,955			3,635,073			(1)	%	16	%
Home equity loans & lines, net	1,237,512			1,224,578			1,215,215			1,170,252			1,176,477			1	%	5	%
Consumer & other, net	407,871			494,721			533,343			552,064			587,170			(18)	%	(31)	%
Total loans, net of deferred fees and costs	$	21,195,684		$	21,520,794		$	20,953,371		$	20,405,997		$	20,422,666		(2)	%	4	%

Loan and leases mix:
Commercial real estate:
Non-owner occupied term, net	17		%	16		%	17		%	17		%	17		%
Owner occupied term, net	12		%	12		%	11		%	12		%	12		%
Multifamily, net	16		%	16		%	16		%	16		%	16		%
Construction & development, net	3		%	4		%	3		%	3		%	4		%
Residential development, net	1		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	10		%	11		%	11		%	11		%	11		%
Lines of credit & other, net	6		%	6		%	6		%	6		%	6		%
Leases & equipment finance, net	7		%	7		%	7		%	7		%	6		%
Residential real estate:
Mortgage, net	20		%	20		%	19		%	18		%	18		%
Home equity loans & lines, net	6		%	5		%	6		%	6		%	6		%
Consumer & other, net	2		%	2		%	3		%	3		%	3		%
Total	100		%	100		%	100		%	100		%	100		%

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

*(Dollars in thousands)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			% Change
	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	6,913,375		$	7,123,180		$	6,771,087		$	6,495,562		$	6,667,467		(3)	%	4	%
Demand, interest bearing	2,524,534			2,406,404			2,355,473			2,341,441			2,340,471			5	%	8	%
Money market	6,930,815			6,646,383			6,789,036			6,469,286			6,645,390			4	%	4	%
Savings	1,471,475			1,469,302			1,446,332			1,479,509			1,492,685			0	%	(1)	%
Time	4,641,305			4,789,465			4,457,085			4,458,096			3,991,473			(3)	%	16	%
Total	$	22,481,504		$	22,434,734		$	21,819,013		$	21,243,894		$	21,137,486		0	%	6	%

Total core deposits⁽¹⁾	$	19,061,058		$	18,845,328		$	18,529,797		$	17,903,754		$	18,190,402		1	%	5	%

Deposit mix:
Demand, non-interest bearing	31		%	32		%	31		%	31		%	32		%
Demand, interest bearing	11		%	11		%	11		%	11		%	11		%
Money market	31		%	30		%	31		%	30		%	31		%
Savings	6		%	6		%	7		%	7		%	7		%
Time	21		%	21		%	20		%	21		%	19		%
Total	100		%	100		%	100		%	100		%	100		%

Number of open accounts:
Demand, non-interest bearing	415,254			413,633			409,235			406,039			406,240
Demand, interest bearing	75,900			76,390			76,686			76,712			77,099
Money market	58,888			58,796			58,158			56,602			56,196
Savings	159,948			160,673			160,708			161,039			161,656
Time	62,952			62,122			60,571			58,210			54,388
Total	772,942			771,614			765,358			758,602			755,579

Average balance per account:
Demand, non-interest bearing	$	16.6		$	17.2		$	16.5		$	16.0		$	16.4
Demand, interest bearing	33.3			31.5			30.7			30.5			30.4
Money market	117.7			113.0			116.7			114.3			118.3
Savings	9.2			9.1			9.0			9.2			9.2
Time	73.7			77.1			73.6			76.6			73.4
Total	$	29.1		$	29.1		$	28.5		$	28.0		$	28.0

⁽¹⁾Core deposits are defined as total deposits less time deposits greater than $100,000.

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

	Quarter Ended															% Change
*(Dollars in thousands)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status	$	26,244		$	31,636		$	35,022		$	44,586		$	50,823		(17)	%	(48)	%
Loans and leases past due 90+ days and accruing⁽¹⁾	37,969			35,745			35,700			31,424			36,444			6	%	4	%
Total non-performing loans and leases	64,213			67,381			70,722			76,010			87,267			(5)	%	(26)	%
Other real estate owned	3,295			4,026			8,423			10,488			10,958			(18)	%	(70)	%
Total non-performing assets	$	67,508		$	71,407		$	79,145		$	86,498		$	98,225		(5)	%	(31)	%

Performing restructured loans and leases	$	18,576		$	14,309		$	15,267		$	15,726		$	13,924		30	%	33	%
Loans and leases past due 31-89 days	$	41,882		$	44,390		$	40,619		$	53,009		$	37,373		(6)	%	12	%
Loans and leases past due 31-89 days to total loans and leases	0.20		%	0.21		%	0.19		%	0.26		%	0.18		%
Non-performing loans and leases to total loans and leases ⁽¹⁾	0.30		%	0.31		%	0.34		%	0.37		%	0.43		%
Non-performing assets to total assets⁽¹⁾	0.23		%	0.25		%	0.28		%	0.32		%	0.36		%


(1)	Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $4.3 million, $5.2 million, $5.4 million, $158,000, and $8.9 million at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)

	Quarter Ended															% Change
*(Dollars in thousands)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Seq. Quarter		Year over Year
Allowance for loan and lease losses:
Balance beginning of period	$	156,288		$	151,069		$	144,872		$	144,871		$	144,026
Provision for loan and lease losses	16,252			23,227			19,352			13,684			17,219			(30)	%	(6)	%
Charge-offs	(18,734)			(23,112)			(16,707)			(17,152)			(19,527)			(19)	%	(4)	%
Recoveries	3,823			5,104			3,552			3,469			3,153			(25)	%	21	%
Net charge-offs	(14,911)			(18,008)			(13,155)			(13,683)			(16,374)			(17)	%	(9)	%
Total allowance for loan and lease losses	157,629			156,288			151,069			144,872			144,871			1	%	9	%
Reserve for unfunded commitments	5,106			5,085			4,857			4,654			4,523			0	%	13	%
Total allowance for credit losses	$	162,735		$	161,373		$	155,926		$	149,526		$	149,394		1	%	9	%

Net charge-offs to average loans and leases (annualized)	0.28		%	0.34		%	0.26		%	0.27		%	0.32		%
Recoveries to gross charge-offs	20.41		%	22.08		%	21.26		%	20.23		%	16.15		%
Allowance for loan and lease losses to loans and leases	0.74		%	0.73		%	0.72		%	0.71		%	0.71		%
Allowance for credit losses to loans and leases	0.77		%	0.75		%	0.74		%	0.73		%	0.73		%

Umpqua Holdings Corporation
Credit Quality – Allowance for Loan and Lease Losses
(Unaudited)
	Year Ended						% Change
*(Dollars in thousands)*	Dec 31, 2019			Dec 31, 2018			Year over Year
Allowance for credit losses:
Balance beginning of period	$	144,871		$	140,608
Provision for loan and lease losses	72,515			55,905			30	%
Charge-offs	(75,705)			(66,050)			15	%
Recoveries	15,948			14,408			11	%
Net charge-offs	(59,757)			(51,642)			16	%
Total allowance for loan and lease losses	157,629			144,871			9	%
Reserve for unfunded commitments	5,106			4,523			13	%
Total allowance for credit losses	$	162,735		$	149,394		9	%

Net charge-offs to average loans and leases	0.29		%	0.26		%
Recoveries to gross charge-offs	21.07		%	21.81		%

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)

	Quarter Ended										% Change
	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Seq. Quarter	Year over Year
Average Rates:
Yield on loans held for sale	4.25	%	4.82	%	5.03	%	5.95	%	5.81	%	(0.57)	(1.56)
Yield on loans and leases	4.80	%	4.93	%	5.07	%	5.06	%	4.97	%	(0.13)	(0.17)
Yield on taxable investments	2.05	%	1.99	%	1.62	%	2.96	%	4.11	%	0.06	(2.06)
Yield on tax-exempt investments ⁽¹⁾	3.23	%	3.30	%	3.42	%	3.59	%	3.70	%	(0.07)	(0.47)
Yield on interest bearing cash and temporary investments	1.65	%	2.20	%	2.41	%	2.44	%	2.25	%	(0.55)	(0.60)
Total yield on earning assets⁽¹⁾	4.36	%	4.52	%	4.59	%	4.79	%	4.81	%	(0.16)	(0.45)

Cost of interest bearing deposits	1.13	%	1.19	%	1.16	%	0.97	%	0.85	%	(0.06)	0.28
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.56	%	0.57	%	0.55	%	0.88	%	0.26	%	(0.01)	0.30
Cost of borrowings	1.96	%	1.95	%	2.03	%	1.88	%	1.75	%	0.01	0.21
Cost of junior subordinated debentures	5.92	%	6.14	%	6.17	%	6.24	%	6.13	%	(0.22)	(0.21)
Total cost of interest bearing liabilities	1.27	%	1.33	%	1.31	%	1.14	%	1.00	%	(0.06)	0.27

Net interest spread ⁽¹⁾	3.09	%	3.19	%	3.28	%	3.65	%	3.81	%	(0.10)	(0.72)
Net interest margin ⁽¹⁾	3.51	%	3.63	%	3.70	%	4.03	%	4.15	%	(0.12)	(0.64)

Performance Ratios:
Return on average assets	1.15	%	1.18	%	1.62	%	1.12	%	1.19	%	(0.03)	(0.04)
Return on average tangible assets	1.22	%	1.26	%	1.73	%	1.20	%	1.28	%	(0.04)	(0.06)
Return on average common equity	7.70	%	7.87	%	10.80	%	7.34	%	7.90	%	(0.17)	(0.20)
Return on average tangible common equity	13.24	%	13.67	%	19.14	%	13.17	%	14.34	%	(0.43)	(1.10)
Efficiency ratio – Consolidated	59.00	%	57.76	%	51.64	%	60.44	%	58.58	%	1.24	0.42
Efficiency ratio – Bank	57.56	%	56.22	%	50.16	%	58.57	%	57.67	%	1.34	(0.11)

⁽¹⁾ Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)

	Year Ended				% Change
	Dec 31, 2019		Dec 31, 2018		Year over Year
Average Rates:
Yield on loans held for sale	4.83	%	5.02	%	(0.19)
Yield on loans and leases	4.96	%	4.90	%	0.06
Yield on taxable investments	2.16	%	2.86	%	(0.70)
Yield on tax-exempt investments (1)	3.40	%	3.66	%	(0.26)
Yield on temporary investments and interest bearing cash	2.06	%	1.94	%	0.12
Total yield on earning assets ⁽¹⁾	4.56	%	4.59	%	(0.03)

Cost of interest bearing deposits	1.12	%	0.67	%	0.45
Cost of securities sold under agreements
to repurchase and fed funds purchased	0.65	%	0.18	%	0.47
Cost of borrowings	1.96	%	1.73	%	0.23
Cost of junior subordinated debentures	6.12	%	5.86	%	0.26
Total cost of interest bearing liabilities	1.26	%	0.84	%	0.42

Net interest spread⁽¹⁾	3.30	%	3.75	%	(0.45)
Net interest margin⁽¹⁾	3.71	%	4.04	%	(0.33)

Performance Ratios:
Return on average assets	1.27	%	1.21	%	0.06
Return on average tangible assets	1.35	%	1.30	%	0.05
Return on average common equity	8.42	%	7.90	%	0.52
Return on average tangible common equity	14.77	%	14.45	%	0.32
Efficiency ratio – Consolidated	56.97	%	60.61	%	(3.64)
Efficiency ratio – Bank	55.40	%	58.60	%	(3.20)

⁽¹⁾ Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

Umpqua Holdings Corporation Average Balances
(Unaudited)

	Quarter Ended										% Change
*(Dollars in thousands)*	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Seq. Quarter		Year over Year
Temporary investments and interest bearing cash	$	1,045,975	$	759,416	$	783,703	$	153,347	$	462,621	38	%	126	%
Investment securities, taxable	2,719,089		2,648,092		2,683,472		2,757,644		2,716,616		3	%	0	%
Investment securities, tax-exempt	244,895		252,765		271,633		287,366		282,998		(3)	%	(13)	%
Loans held for sale	415,169		328,155		264,445		187,656		238,958		27	%	74	%
Loans and leases	21,379,239		21,170,915		20,605,963		20,388,988		20,051,674		1	%	7	%
Total interest earning assets	25,804,367		25,159,343		24,609,216		23,775,001		23,752,867		3	%	9	%
Goodwill and other intangible assets, net	1,806,791		1,808,191		1,809,583		1,811,007		1,812,487		0	%	0	%
Total assets	28,981,387		28,356,982		27,709,310		26,811,621		26,672,224		2	%	9	%

Non-interest bearing demand deposits	7,037,320		6,880,093		6,556,090		6,505,615		6,828,730		2	%	3	%
Interest bearing deposits	15,550,483		15,289,464		15,069,198		14,304,325		14,138,852		2	%	10	%
Total deposits	22,587,803		22,169,557		21,625,288		20,809,940		20,967,582		2	%	8	%
Interest bearing liabilities	17,237,770		16,827,917		16,646,949		15,858,561		15,547,250		2	%	11	%

Shareholders' equity - common	4,317,277		4,260,810		4,153,175		4,091,174		4,035,125		1	%	7	%
Tangible common equity⁽¹⁾	2,510,486		2,452,619		2,343,592		2,280,167		2,222,638		2	%	13	%

Umpqua Holdings Corporation Average Balances
(Unaudited)
	Year Ended				% Change
*(Dollars in thousands)*	Dec 31, 2019		Dec 31, 2018		Year over Year
Temporary investments and interest bearing cash	$	688,258	$	446,500	54	%
Investment securities, taxable	2,701,821		2,729,950		(1)	%
Investment securities, tax-exempt	264,017		281,906		(6)	%
Loans held for sale	299,560		288,288		4	%
Loans and leases	20,889,769		19,562,369		7	%
Total interest earning assets	24,843,425		23,309,013		7	%
Goodwill and other intangible assets, net	1,808,879		1,814,756		0	%
Total assets	27,971,844		26,210,933		7	%

Non-interest bearing demand deposits	6,746,607		6,699,112		1	%
Interest bearing deposits	15,057,428		13,820,497		9	%
Total deposits	21,804,035		20,519,609		6	%
Interest bearing liabilities	16,647,085		15,264,375		9	%

Shareholders' equity - common	4,206,380		4,002,700		5	%
Tangible common equity ⁽¹⁾	2,397,501		2,187,944		10	%

⁽¹⁾ Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders' equity less average goodwill and other intangible assets, net (excluding MSRs).

Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
(dollars in thousands)	Quarter Ended
	December 31, 2019						September 30, 2019						December 31, 2018
	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	415,169	$	4,408	4.25	%	$	328,155	$	3,953	4.82	%	$	238,958	$	3,473	5.81	%
Loans and leases (1)	21,379,239		257,701		4.80	%	21,170,915		262,158		4.93	%	20,051,674		250,620		4.97	%
Taxable securities	2,719,089		13,940		2.05	%	2,648,092		13,145		1.99	%	2,716,616		27,919		4.11	%
Non-taxable securities (2)	244,895		1,980		3.23	%	252,765		2,086		3.30	%	282,998		2,619		3.70	%
Temporary investments and interest-bearing cash	1,045,975		4,343		1.65	%	759,416		4,204		2.20	%	462,621		2,621		2.25	%
Total interest-earning assets	25,804,367		$	282,372	4.36	%	25,159,343		$	285,546	4.52	%	23,752,867		$	287,252	4.81	%
Other assets	3,177,020						3,197,639						2,919,357
Total assets	$	28,981,387					$	28,356,982					$	26,672,224
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,446,137	$	3,485	0.57	%	$	2,363,626	$	3,117	0.52	%	$	2,319,613	$	2,659	0.45	%
Money market deposits	6,853,118		13,690		0.79	%	6,962,370		16,575		0.94	%	6,371,127		9,170		0.57	%
Savings deposits	1,463,744		509		0.14	%	1,462,198		557		0.15	%	1,488,768		490		0.13	%
Time deposits	4,787,484		26,696		2.21	%	4,501,270		25,627		2.26	%	3,959,344		17,805		1.78	%
Total interest-bearing deposits	15,550,483		44,380		1.13	%	15,289,464		45,876		1.19	%	14,138,852		30,124		0.85	%
Repurchase agreements and federal funds purchased	303,230		431		0.56	%	313,089		448		0.57	%	284,847		185		0.26	%
Borrowings	1,027,311		5,080		1.96	%	860,285		4,238		1.95	%	751,773		3,326		1.75	%
Junior subordinated debentures	356,746		5,325		5.92	%	365,079		5,652		6.14	%	371,778		5,743		6.13	%
Total interest-bearing liabilities	17,237,770		$	55,216	1.27	%	16,827,917		$	56,214	1.33	%	15,547,250		$	39,378	1.00	%
Non-interest-bearing deposits	7,037,320						6,880,093						6,828,730
Other liabilities	389,020						388,162						261,119
Total liabilities	24,664,110						24,096,172						22,637,099
Common equity	4,317,277						4,260,810						4,035,125
Total liabilities and shareholders' equity	$	28,981,387					$	28,356,982					$	26,672,224
NET INTEREST INCOME			$	227,156					$	229,332					$	247,874
NET INTEREST SPREAD					3.09	%					3.19	%					3.81	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.51	%					3.63	%					4.15	%


(1)	Non-accrual loans and leases are included in the average balance.
(2)	Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $342,000 for the three months ended December 31, 2019 as compared to $359,000 for September 30, 2019 and $484,000 for December 31, 2018.

Umpqua Holdings Corporation Average Rates and Balances
(Unaudited)
(dollars in thousands)	Year Ended
	December 31, 2019						December 31, 2018
	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	299,560	$	14,477	4.83	%	$	288,288	$	14,475	5.02	%
Loans and leases (1)	20,889,769		1,036,600		4.96	%	19,562,369		957,639		4.90	%
Taxable securities	2,701,821		58,419		2.16	%	2,729,950		78,002		2.86	%
Non-taxable securities (2)	264,017		8,971		3.40	%	281,906		10,316		3.66	%
Temporary investments and interest-bearing cash	688,258		14,180		2.06	%	446,500		8,665		1.94	%
Total interest-earning assets	24,843,425		$	1,132,647	4.56	%	23,309,013		$	1,069,097	4.59	%
Other assets	3,128,419						2,901,920
Total assets	$	27,971,844					$	26,210,933
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	2,365,845	$	12,040	0.51	%	$	2,333,662	$	7,675	0.33	%
Money market deposits	6,740,502		56,633		0.84	%	6,438,175		27,599		0.43	%
Savings deposits	1,467,263		1,746		0.12	%	1,473,134		1,356		0.09	%
Time deposits	4,483,818		97,522		2.17	%	3,575,526		56,055		1.57	%
Total interest-bearing deposits	15,057,428		167,941		1.12	%	13,820,497		92,685		0.67	%
Repurchase agreements and federal funds purchased	319,723		2,092		0.65	%	287,767		506		0.18	%
Borrowings	896,681		17,564		1.96	%	785,593		13,604		1.73	%
Junior subordinated debentures	373,253		22,845		6.12	%	370,518		21,715		5.86	%
Total interest-bearing liabilities	16,647,085		$	210,442	1.26	%	15,264,375		$	128,510	0.84	%
Non-interest-bearing deposits	6,746,607						6,699,112
Other liabilities	371,772						244,746
Total liabilities	23,765,464						22,208,233
Common equity	4,206,380						4,002,700
Total liabilities and shareholders' equity	$	27,971,844					$	26,210,933
NET INTEREST INCOME			$	922,205					$	940,587
NET INTEREST SPREAD					3.30	%					3.75	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.71	%					4.04	%

(1)	Non-accrual loans and leases are included in the average balance.
(2)	Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $1.6 million for the twelve months ended December 31, 2019 as compared to $1.9 million for the same period in 2018.

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(Unaudited)
	Quarter Ended															% Change
*(Dollars in thousands)*	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Seq. Quarter		Year over Year
Residential mortgage banking revenue:
Origination and sale	$	35,438		$	31,432		$	23,151		$	14,373		$	16,665		13	%	113	%
Servicing	8,981			11,358			11,036			10,824			11,555			(21)	%	(22)	%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(5,237)			(6,835)			(6,905)			(6,431)			(6,425)			(23)	%	(18)	%
Changes due to valuation inputs or assumptions	(5,132)			11,045			(17,753)			(7,535)			(6,645)			(146)	%	(23)	%
Total	$	34,050		$	47,000		$	9,529		$	11,231		$	15,150		(28)	%	125	%

Closed loan volume:
Portfolio	$	335,511		$	611,022		$	481,878		$	318,612		$	312,524		(45)	%	7	%
For-sale	1,060,016			844,442			698,150			487,090			589,355			26	%	80	%
Total	$	1,395,527		$	1,455,464		$	1,180,028		$	805,702		$	901,879		(4)	%	55	%

Gain on sale margin:
Based on for-sale volume	3.34		%	3.72		%	3.32		%	2.95		%	2.83		%	(0.38)		0.51

Residential mortgage servicing rights:
Balance, beginning of period	$	151,383		$	139,780		$	158,946		$	169,025		$	175,038		8	%	(14)	%
Additions for new MSR capitalized	8,397			7,393			5,492			3,887			7,057			14	%	19	%
Sale of MSR assets	(34,401)			—			—			—			—			nm		nm
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(5,237)			(6,835)			(6,905)			(6,431)			(6,425)			(23)	%	(18)	%
Changes due to valuation inputs or assumptions	(5,132)			11,045			(17,753)			(7,535)			(6,645)			(146)	%	(23)	%
Balance, end of period	$	115,010		$	151,383		$	139,780		$	158,946		$	169,025		(24)	%	(32)	%

Residential mortgage loans serviced for others	$	12,276,943		$	15,707,519		$	15,796,102		$	15,902,587		$	15,978,885		(22)	%	(23)	%
MSR as % of serviced portfolio	0.94		%	0.96		%	0.88		%	1.00		%	1.06		%	(0.02)		(0.12)

Umpqua Holdings Corporation Residential Mortgage Banking Activity
(Unaudited)
	Year Ended						% Change
*(Dollars in thousands)*	Dec 31, 2019			Dec 31, 2018			Year over Year
Residential mortgage banking revenue:
Origination and sale	$	104,394		$	88,644		18	%
Servicing	42,199			42,786			(1)	%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(25,408)			(24,533)			4	%
Changes due to valuation inputs or assumptions	(19,375)			11,338			(271)	%
Total	$	101,810		$	118,235		(14)	%

Closed loan volume:
Portfolio	$	1,747,023		$	1,168,829		49	%
For-sale	3,089,698			2,872,994			8	%
Total	$	4,836,721		$	4,041,823		20	%

Gain on sale margin:
Based on for-sale volume	3.38		%	3.09		%	0.29

Residential mortgage servicing rights:
Balance, beginning of period	$	169,025		$	153,151		10	%
Additions for new MSR capitalized	25,169			29,069			(13)	%
Sale of MSR assets	(34,401)			—			nm
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(25,408)			(24,533)			4	%
Changes due to valuation inputs or assumptions	(19,375)			11,338			(271)	%
Balance, end of period	$	115,010		$	169,025		(32)	%

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SOURCE Umpqua Holdings Corporation

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