Umpqua Bank Opens NEW Vancouver, Wash., NEIGHBORHOOD Store

User-Friendly Store Located in Esther Short Commons Marks Umpqua’s Fifth
Location in the Area

Vancouver, Wash. – May 18, 2009 – Today, Umpqua Bank, a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ) and pioneering community bank, opened a “neighborhood store” in Vancouver, Wash. Located at 720 Esther St. in Esther Short Commons, the new location is one of five Umpqua Bank neighborhood stores, which redefine conventional banking practices and design. Similar to cafés and other gathering places, Umpqua’s neighborhood stores are embedded in established neighborhoods, providing residents and visitors with an engaging space to browse local merchandise, shop online, enjoy a cup of coffee and learn about community events and resources – in addition to banking.

“Led by Mayor Pollard, Vancouver has done a great job revitalizing its downtown and we are very pleased to be a part of it through this new store,” said Ray Davis, president and CEO of Umpqua Bank. “Our neighborhood stores have been designed to foster community while providing residents and businesses with the financial resources they need. We see Esther Short Commons as the perfect location to do both.”

Umpqua Bank’s neighborhood store strategy reduces the bank’s construction costs and building time by approximately 50 percent. The stores are designed as neighborhood hubs – smaller spaces where every square inch is maximized to provide personalized, community-focused experiences.

The 1,500-square-foot store is Umpqua’s fifth retail location in Vancouver and will be managed by Naomi Camargo who previously served as store manager at Umpqua’s Vancouver Mill Plain location. The store will be open Monday through Thursday from 9:00 a.m. to 5:00 p.m., Fridays from 9:00 a.m. to 6:00 p.m., and Saturdays from 9:00 a.m. to 1:00 p.m. Umpqua’s Esther Short location is fully equipped to offer personal banking, small business finance and commercial lending resources.

Community Events

Umpqua Bank will host a series of community events in May and June to celebrate the Esther Short neighborhood store opening.

· Ribbon Cutting Ceremony: Tuesday, May 19 at 9:00 a.m.

Join the Vancouver Chamber of Commerce and Mayor Pollard for a ribbon cutting ceremony at Umpqua Bank’s Esther Short store on Tuesday, May 19 at 9:00 a.m. The ceremony is open to the public.



· Umpqua Bank Neighborhood Party and Open House: Tuesday, June 2 from 5:00 p.m. to 7:00 p.m.

Featuring local food and drinks, live music and picnic-themed giveaways, Umpqua Bank will host a community party at Esther Short Park. The party is open to the public. Please RSVP to Tasha Phelps at tashaphelps@umpquabank.com or by calling 360-573-4014.

About Neighborhood Stores

Unlike traditional banks, Umpqua’s neighborhood stores feel more like cafés and are designed as a place for the neighborhood to connect with community information. In addition to bank products, stores feature electronic bulletin boards that provide in-depth community information, and neighborhood calendars, as well as access to computer cafés called MyBooth that are equipped with community and online resources. The stores also incorporate enhanced banking automation technologies, including cash recyclers that maximize space and improve store associate efficiency and security.

Umpqua’s neighborhood stores feature a one-of-a-kind, interactive Discover Wall. This multi-screen display delivers a choreographed video experience to customers as well as an interactive sustainable presentation of bank products and services, which allows customers to print and takeaway only the materials they want and need.

Umpqua’s neighborhood store concept is designed to be 1,500 square feet, can be built in 45 days (compared to the industry average of 120 days), and cuts construction costs by approximately 50 percent, while delivering Umpqua’s unique full-service banking upon completion.