Umpqua Bank and Ferguson Wellman Forge Strategic Alliance

Umpqua Bank, a subsidiary of Umpqua Holdings Corp. (NASDAQ: UMPQ), and Ferguson Wellman Capital Management, a privately owned Pacific Northwest investment advisory firm, have formed a strategic alliance to provide highly personalized investment strategies and services for individuals, families and nonprofits. Umpqua Bank and Ferguson Wellman will remain independent, but will work in exclusive partnership with one another to offer customers an expanded portfolio of wealth management products and services that combines private banking and asset management.

"This alliance adds one of the final elements to Umpqua’s wealth management offerings, the ability to work with a highly respected firm to provide asset management services to our clients,” said Ray Davis, president and CEO of Umpqua Bank. "Through this partnership, we are uniting the expertise of two of Oregon’s most respected financial institutions. Like Umpqua Bank, Ferguson Wellman is committed both to its clients’ financial success and to the communities it serves – this is a perfect match.”

Umpqua Bank’s wealth management division, launched in January 2009, includes the company’s retail brokerage, Umpqua Investments, and its private bank. The partnership with Ferguson Wellman expands Umpqua’s wealth management services to include asset management, creating a seamless wealth management option for clients of both companies.

"Ferguson Wellman is pleased to enter into a strategic alliance with Umpqua’s wealth management division,” said James Rudd, principal and CEO for Ferguson Wellman. "Umpqua is one of the nation’s most respected regional community banks, has a strong history of financial integrity and holds a deep commitment to client service. The values of our organizations align well with one another, and I am confident that this alliance will benefit the clients of both organizations.”

Founded in 1975, Ferguson Wellman advises more than 520 clients throughout the Pacific Northwest. The firm manages approximately $2.2 billion in assets (6/30/09) that comprise individuals and institutions – such as nonprofits, unions and corporate retirement plans – with portfolios in excess of $2 million.

Through this partnership, Umpqua customers and advisors now have access to Ferguson Wellman’s staff of 17 portfolio managers and analysts, as well as its proprietary financial planning tools. Additionally, it allows the bank to broaden its wealth management services to include estate planning, tax considerations, college and retirement savings, major purchase advising, charitable giving consultation and business sale assistance.

Through the alliance with Umpqua, Ferguson Wellman now has the ability to recommend exclusive private banking solutions to clients seeking customized lending and depository products. Umpqua Private Bank provides tailored financial services and products to affluent clients in the greater Portland area and is part of the community bank’s broader wealth management division.

About Ferguson Wellman Capital Management

Founded in 1975, Ferguson Wellman Capital Management is a privately owned investment advisory firm, established in the Pacific Northwest. With more than 520 clients, the firm manages $2.2 billion in assets (6/30/09) that comprise union and corporate retirement plans; endowments and foundations; and individuals with portfolios in excess of $2 million.

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, The New York Times, BusinessWeek, Fast Company and CNBC. The company has been recognized for the past three years in a row on FORTUNE magazine’s list of the country’s "100 Best Companies To Work For.” Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments Inc., which offers services through Umpqua Bank stores and in dedicated offices throughout Oregon. Umpqua Bank's Private Bank 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.