August 12, 2009

Umpqua Bank is sticking its toe in the icy water of the capital markets, announcing today it hopes to raise $175 million in a stock offering.The bank will decide whether to proceed with the offering in a matter of days based on the reaction of potential buyers.Filing an initial offering prospectus with the Securities and Exchange Commission "was the first step in a process," said Lani Hayward, Umpqua executive vice president.

Umpqua, with its parent company based in Portland, is the largest bank based in Oregon, with $8.6 billion in total assets.Hayward said Umpqua would use proceeds from an offering to fund organic growth and for potential acquisitions. It also might use the money to repay the $214 million it received from the U.S. Treasury last fall. Umpqua was one of three Oregon banks to take the federal loan.