Segment Information

The Company reports four primary segments: Commercial Bank, Wealth Management, Retail Bank, and Home Lending with the remainder as Corporate and other.

The Commercial Bank segment includes lending, treasury and cash management services and customer risk management products to small businesses, middle market and larger commercial customers and includes the operations of Financial Pacific Leasing Inc., a commercial leasing company. The Wealth Management segment consists of the operations of Umpqua Investments, which offers a full range of retail brokerage and investment advisory services and products to its clients who consist primarily of individual investors, and Umpqua Private Bank, which serves high net worth individuals with liquid investable assets and provides customized financial solutions and offerings. The Retail Bank segment includes retail lending and deposit services for customers served through the Bank's store network. The Home Lending segment originates, sells and services residential mortgage loans. The Corporate and other segment includes activities that are not directly attributable to one of the four principal lines of business and includes the operations of Pivotus Ventures, Inc. and the parent company, eliminations and the economic impact of certain assets, capital and support functions not specifically identifiable within the other lines of business.

Management monitors the Company's results using an internal performance measurement accounting system, which provides line of business results and key performance measures. The application and development of these management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable segment may be periodically revised retrospectively, if material.

The provision for income taxes is allocated to business segments using a 25% effective tax rate for 2018 and 37% for 2017. The residual income tax expense or benefit arising from tax planning strategies or other tax attributes to arrive at the consolidated effective tax rate is retained in Corporate and Other.

Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:



(in thousands)	Three Months Ended June 30, 2018
	Commercial Bank		Wealth Management		Retail Bank		Home Lending		Corporate & Other			Consolidated
Net interest income	$	112,249	$	5,536	$	80,998	$	10,128	$	15,989		$	224,900
Provision for loan and lease losses	11,276		182		594		208		1,059			13,319
Non-interest income	15,628		4,850		15,993		33,278		1,902			71,651
Non-interest expense	55,606		9,571		70,860		35,032		24,503			195,572
Income (loss) before income taxes	60,995		633		25,537		8,166		(7,671		)	87,660
Provision (benefit) for income taxes	15,249		158		6,385		2,041		(2,172		)	21,661
Net income (loss)	$	45,746	$	475	$	19,152	$	6,125	$	(5,499	)	$	65,999

(in thousands)	Six Months Ended June 30, 2018
	Commercial Bank		Wealth Management		Retail Bank		Home Lending		Corporate & Other			Consolidated
Net interest income	$	223,984	$	11,539	$	160,850	$	18,973	$	34,535		$	449,881
Provision for loan and lease losses	24,644		349		955		700		327			26,975
Non-interest income	31,357		9,746		31,186		71,686		6,243			150,218
Non-interest expense	110,180		18,339		142,003		67,329		43,834			381,685
Income (loss) before income taxes	120,517		2,597		49,078		22,630		(3,383		)	191,439
Provision (benefit) for income taxes	30,129		649		12,270		5,657		(2,237		)	46,468
Net income (loss)	$	90,388	$	1,948	$	36,808	$	16,973	$	(1,146	)	$	144,971



(in thousands)	Three Months Ended June 30, 2017
	Commercial Bank		Wealth Management		Retail Bank		Home Lending		Corporate & Other			Consolidated
Net interest income	$	106,307	$	5,402	$	69,464	$	9,234	$	22,335		$	212,742
Provision (recapture) for loan and lease losses	7,784		175		2,852		260		(414		)	10,657
Non-interest income	14,986		4,479		15,670		34,637		1,347			71,119
Non-interest expense	53,112		8,732		72,084		40,542		9,551			184,021
Income before income taxes	60,397		974		10,198		3,069		14,545			89,183
Provision for income taxes	22,347		360		3,773		1,136		4,348			31,964
Net income	$	38,050	$	614	$	6,425	$	1,933	$	10,197		$	57,219

(in thousands)	Six Months Ended June 30, 2017
	Commercial Bank		Wealth Management		Retail Bank		Home Lending		Corporate & Other			Consolidated
Net interest income	$	210,062	$	10,642	$	135,953	$	19,270	$	43,594		$	419,521
Provision for loan and lease losses	16,893		375		4,668		287		106			22,329
Non-interest income	27,460		9,227		30,501		61,517		2,639			131,344
Non-interest expense	106,525		17,205		143,778		79,696		19,531			366,735
Income before income taxes	114,104		2,289		18,008		804		26,596			161,801
Provision for income taxes	42,218		847		6,663		297		8,521			58,546
Net income	$	71,886	$	1,442	$	11,345	$	507	$	18,075		$	103,255



(in thousands)	June 30, 2018
	Commercial Bank		Wealth Management		Retail Bank		Home Lending		Corporate & Other			Consolidated
Total assets	$	14,350,647	$	490,212	$	2,045,525	$	3,731,854	$	5,862,363		$	26,480,601
Total loans and leases	$	14,166,488	$	476,176	$	1,966,283	$	3,110,149	$	(79,602	)	$	19,639,494
Total deposits	$	3,739,580	$	1,053,109	$	12,853,919	$	286,327	$	2,811,591		$	20,744,526



(in thousands)	December 31, 2017
	Commercial Bank		Wealth Management		Retail Bank		Home Lending		Corporate & Other			Consolidated
Total assets	$	13,856,963	$	437,873	$	2,143,830	$	3,355,189	$	5,886,592		$	25,680,447
Total loans and leases	$	13,683,264	$	423,813	$	2,054,058	$	2,921,897	$	(63,840	)	$	19,019,192
Total deposits	$	3,776,080	$	993,559	$	12,449,568	$	222,494	$	2,506,599		$	19,948,300