Regulatory Capital

12 Months Ended

Dec. 31, 2024

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company and the Bank's operations and financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about risk components, asset risk weighting, and other factors.

As permitted by the regulatory capital rules, the Company and the Bank elected the CECL transition option that delayed the estimated impact on regulatory capital resulting from the adoption of CECL over a five-year transition period ending December 31, 2024. The Company elected this capital relief to delay the estimated regulatory capital impact of adopting CECL, relative to the incurred loss methodology's effect on regulatory capital. The Company phased out the cumulative adjustment as calculated at the end of 2021, by adjusting it by 75% in 2022, 50% in 2023, and 25% through the end of 2024.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital, and Tier 1 common to risk-weighted assets (as defined in the applicable regulations), and of Tier 1 capital to average assets (as defined in the applicable regulations). Basel III also requires banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases, and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of CET1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. The capital conservation buffer is fully phased-in at 2.5%, such that the CET1, Tier 1, and total capital ratio minimums inclusive of the capital conservation buffers were 7%, 8.5%, and 10.5%. Management believes, as of December 31, 2024, that the Company meets all capital adequacy requirements to which it is subject.

The following table shows the Company's consolidated and the Bank's capital adequacy ratios compared to the regulatory minimum capital ratio and the regulatory minimum capital ratio needed to qualify as a "well-capitalized" institution, as calculated under regulatory guidelines of Basel III as of December 31, 2024 and 2023:


	Actual				For Capital Adequacy Purposes		To be Well Capitalized
(dollars in thousands)	Amount		Ratio		Ratio		Ratio
December 31, 2024
Total Capital (to Risk Weighted Assets)
Consolidated	$	5,082,012	12.75	%	8.00	%	10.00	%
Umpqua Bank	$	4,951,381	12.42	%	8.00	%	10.00	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	4,200,595	10.54	%	6.00	%	8.00	%
Umpqua Bank	$	4,530,964	11.37	%	6.00	%	8.00	%
Tier 1 Common (to Risk Weighted Assets)
Consolidated	$	4,200,595	10.54	%	4.50	%	6.50	%
Umpqua Bank	$	4,530,964	11.37	%	4.50	%	6.50	%
Tier 1 Capital (to Average Assets)
Consolidated	$	4,200,595	8.31	%	4.00	%	5.00	%
Umpqua Bank	$	4,530,964	8.97	%	4.00	%	5.00	%
December 31, 2023
Total Capital (to Risk Weighted Assets)
Consolidated	$	4,770,335	11.86	%	8.00	%	10.00	%
Umpqua Bank	$	4,653,920	11.57	%	8.00	%	10.00	%
Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	3,876,985	9.64	%	6.00	%	8.00	%
Umpqua Bank	$	4,231,569	10.52	%	6.00	%	8.00	%
Tier 1 Common (to Risk Weighted Assets)
Consolidated	$	3,876,985	9.64	%	4.50	%	6.50	%
Umpqua Bank	$	4,231,569	10.52	%	4.50	%	6.50	%
Tier 1 Capital (to Average Assets)
Consolidated	$	3,876,985	7.60	%	4.00	%	5.00	%
Umpqua Bank	$	4,231,569	8.30	%	4.00	%	5.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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