MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - UNIONBANCAL CORPORATION 8-K - MUFG Americas Holdings Corp	a50354927.htm

Exhibit 99.1

UnionBanCal Corporation Reports Second Quarter Net Income of $187 Million

Second Quarter Highlights:

Net income was $187 million, down from $195 million for the prior quarter, and down from $242 million for the year-ago quarter.
Net interest margin was 3.29 percent, up from 3.27 percent for the prior quarter, and down from 3.44 percent for the year-ago quarter.
Average total loans, excluding FDIC covered loans, were $54.1 billion, up from $53.2 billion for the prior quarter, and up from $47.5 billion for the year-ago quarter.
Core deposits at June 30, 2012, were $53.4 billion, up from $53.1 billion at March 31, 2012, and up from $48.2 billion at June 30, 2011.
Total provision for credit losses was a benefit of $15 million, compared with a benefit of $3 million for the prior quarter, and a benefit of $112 million for the year-ago quarter. Key asset quality metrics remained strong in the second quarter. Excluding FDIC covered assets:
- Nonperforming assets at quarter-end were $539 million, or 0.62 percent of total assets, down from $558 million, or 0.61 percent of total assets, prior quarter.
- Criticized loans in the commercial portfolio at quarter-end were $1.3 billion, down 15 percent from $1.5 billion at March 31, 2012.
Capital ratios strengthened during the quarter:
- Tier 1 common capital ratio was 13.78 percent at June 30, 2012, up 5 bps from 13.73 percent at March 31, 2012.
- Tangible common equity ratio was 11.04 percent at June 30, 2012, up 84 basis points from 10.20 percent at March 31, 2012.

SAN FRANCISCO--(BUSINESS WIRE)--July 26, 2012--UnionBanCal Corporation (the Company), parent company of San Francisco-based Union Bank, N.A., today reported second quarter 2012 results. Net income for second quarter was $187 million, down from $195 million for the prior quarter, and down from $242 million for the year-ago quarter. Key drivers of the decrease in net income from prior quarter included a higher effective income tax rate in the current quarter and a prior-quarter net gain on the sale of certain business units.

Summary of Second Quarter Results

Second Quarter Total Revenue

For second quarter 2012, total revenue (net interest income plus noninterest income) was $834 million, down $21 million, or 2 percent, compared with the prior quarter. Net interest income increased 1 percent, and noninterest income decreased 13 percent. The net interest margin was 3.29 percent, compared with 3.27 percent for the prior quarter.

Net interest income for second quarter 2012 was $659 million, up $6 million, or 1 percent, compared with first quarter 2012. The increase in net interest income was primarily due to a more favorable mix of earning assets and a higher average yield on FDIC covered loans, partially offset by a lower average yield on securities.

Average total loans, excluding FDIC covered loans, increased $904 million, or 2 percent, compared with first quarter 2012, primarily due to growth in commercial and industrial loans and residential mortgage loans. Average FDIC covered loans decreased $116 million, or 13 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $328 million, or 2 percent. Average interest bearing deposits decreased $254 million, or 1 percent, primarily due to a decrease in time deposits.

For second quarter 2012, noninterest income was $175 million, down $27 million, or 13 percent, compared with prior quarter. Other noninterest income decreased primarily due to a net gain on the sale of certain business units recorded in first quarter 2012 and additional amortization on the FDIC indemnification asset, partially offset by a gain on the sale of private capital investments. The decrease in other noninterest income was partially offset by higher gains on the sale of securities related to portfolio rebalancing activities.

Compared with second quarter 2011, total revenue declined $20 million, with net interest income up 7 percent and noninterest income down 27 percent. Net interest income increased $45 million compared with the year-ago quarter, primarily due to growth in both non-FDIC covered loans and securities, as well as a more favorable mix of total earning assets. The increase was partially offset by compression in the net interest margin, primarily due to declining yields on non-FDIC covered loans and securities.

Average total loans, excluding FDIC covered loans, increased $6.6 billion, or 14 percent, compared with second quarter 2011, primarily due to growth in commercial and industrial loans and residential mortgage loans. Average FDIC covered loans decreased $521 million, or 40 percent, due to expected runoff of the portfolio. Average interest bearing deposits increased $3.7 billion, or 9 percent, and average noninterest bearing deposits increased $2.5 billion, or 14 percent, largely reflecting growth in core deposits.

Noninterest income decreased $65 million, or 27 percent, compared with second quarter 2011, primarily due to lower other noninterest income, which declined primarily due to the impact of amortization adjustments to the FDIC indemnification asset.

Second Quarter Noninterest Expense

Noninterest expense for second quarter 2012 was $599 million, down $15 million, or 2 percent, compared with first quarter 2012. Salaries and employee benefits expense decreased $13 million, primarily due to seasonal factors. Non-staff expense was relatively flat.

Noninterest expense for second quarter 2012 was up $21 million, or 4 percent, compared with second quarter 2011. The provision for losses on off-balance sheet commitments was a benefit of $1 million, compared with a benefit of $18 million in second quarter 2011. Other noninterest expense increased $16 million, primarily due to changes in the fair value of liabilities associated with FDIC covered loans.

Taxes

The effective tax rate for second quarter 2012 was 27 percent, compared with an effective tax rate of 21 percent for first quarter 2012. The increase in the effective tax rate was primarily due to a non-recurring adjustment to tax reserves recorded in first quarter 2012.

Balance Sheet

At June 30, 2012, the Company had total assets of $87.9 billion, down $1.7 billion, or 2 percent, compared with December 31, 2011.

At June 30, 2012, total deposits were $63.4 billion, down $1.0 billion, or 2 percent, compared with December 31, 2011. Core deposits at June 30, 2012, were $53.4 billion, up $0.5 billion, or 1 percent, compared with December 31, 2011.

Credit Quality

The total provision for credit losses was a benefit of $15 million for second quarter 2012, compared with a benefit of $3 million for first quarter 2012, primarily due to continuing strong credit quality in the existing portfolio. Nonperforming assets, excluding FDIC covered assets, decreased $19 million, or 3 percent, compared with prior quarter. Net charge-offs, excluding FDIC covered assets, decreased $25 million compared with first quarter 2012, primarily due to lower commercial and industrial charge-offs, as well as lower consumer loan charge-offs.

Excluding FDIC covered assets, nonperforming assets were $539 million, or 0.62 percent of total assets, at June 30, 2012, down from $558 million, or 0.61 percent of total assets, at March 31, 2012, and down from $678 million, or 0.86 percent of total assets, at June 30, 2011.

Excluding FDIC covered assets, net charge-offs for second quarter 2012 were $29 million, down from $54 million for first quarter 2012, and down from $110 million for second quarter 2011. Excluding FDIC covered assets, net charge-offs to average total loans for second quarter 2012 were 0.21 percent annualized, down from 0.41 percent annualized for first quarter 2012, and down from 0.92 percent annualized for second quarter 2011.

The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In second quarter 2012, the provision for loan losses was a benefit of $14 million and the provision for losses on off-balance sheet commitments was a benefit of $1 million.

The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 1.46 percent at June 30, 2012, compared with 1.54 percent at March 31, 2012, and 1.97 percent at June 30, 2011. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 153 percent at June 30, 2012, compared with 155 percent at March 31, 2012, and 144 percent at June 30, 2011.

Capital

Total stockholder’s equity was $12.1 billion and tangible common equity was $9.4 billion at June 30, 2012. The Company’s tangible common equity ratio was 11.04 percent at June 30, 2012, up 84 basis points from 10.20 percent at March 31, 2012, and up 75 basis points from 10.29 percent at June 30, 2011. The Basel I Tier 1 common and Tier 1 risk-based capital ratios were both 13.78 percent at June 30, 2012. Additionally, the Basel I Total risk-based capital ratio was 15.53 percent at June 30, 2012.

Non-GAAP Financial Measures

This press release contains certain references to financial measures identified as excluding privatization transaction impact, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, productivity initiative costs and gains, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated variable interest entities, or merger costs related to acquisitions, which are adjustments from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP in that they exclude unusual or non-recurring charges, losses or credits. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information which is important to a proper understanding of the Company’s core business results. This press release also includes additional capital ratios (the tangible common equity and Basel I Tier 1 common capital ratios) to facilitate the understanding of the Company’s capital structure and for use in assessing and comparing the quality and composition of UnionBanCal’s capital structure to other financial institutions. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.

Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $87.9 billion at June 30, 2012. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 402 branches in California, Washington, Oregon, Texas, Illinois, and New York as well as two international offices, on June 30, 2012. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.

UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 1

																				Percent Change to
	As of and for the Three Months Ended																			June 30, 2012 from
	June 30,				March 31,				December 31,			September 30,				June 30,				March 31,			June 30,
(Dollars in millions)	2012				2012				2011			2011				2011				2012			2011
Results of operations:
Net interest income	$	659			$	653			$	640		$	606			$	614			1		%	7		%
Noninterest income		175				202				151			185				240			(13	)		(27	)
Total revenue		834				855				791			791				854			(2	)		(2	)
Noninterest expense		599				614				619			603				578			(2	)		4
Pre-tax, pre-provision income ⁽¹⁾		235				241				172			188				276			(2	)		(15	)
(Reversal of) provision for loan losses		(14	)			(1	)			7			(13	)			(94	)		nm			85
Income before income taxes and including noncontrolling interests		249				242				165			201				370			3			(33	)
Income tax expense		67				51				40			33				131			31			(49	)
Net income including noncontrolling interests		182				191				125			168				239			(5	)		(24	)
Deduct: Net loss from noncontrolling interests		5				4				4			4				3			25			67
Net income attributable to UnionBanCal Corporation (UNBC)	$	187			$	195			$	129		$	172			$	242			(4	)		(23	)

Balance sheet (end of period):
Total assets	$	87,939			$	92,323			$	89,676		$	84,013			$	80,093			(5	)		10
Total securities		22,890				25,432				24,106			20,962				19,430			(10	)		18
Total loans held for investment		54,291				54,322				53,540			50,998				48,967			-			11
Core deposits ⁽²⁾		53,378				53,125				52,840			50,720				48,156			-			11
Total deposits		63,443				65,089				64,420			60,454				57,181			(3	)		11
Long-term debt		6,444				5,554				6,684			7,064				7,069			16			(9	)
UNBC stockholder's equity		12,076				11,821				11,562			10,900				10,667			2			13

Balance sheet (period average):
Total assets	$	89,479			$	89,449			$	87,079		$	82,197			$	80,334			-			11
Total securities		24,223				24,265				22,721			19,145				20,543			-			18
Total loans held for investment		54,937				54,149				52,365			50,214				48,849			1			12
Earning assets		80,625				80,503				78,007			73,303				71,709			-			12
Total deposits		64,499				64,425				62,848			59,580				58,333			-			11
UNBC stockholder's equity		11,905				11,621				11,646			10,708				10,366			2			15

Performance ratios:
Return on average assets ⁽³⁾		0.84		%		0.88		%		0.59	%		0.83		%		1.21		%
Return on average UNBC stockholder's equity ⁽³⁾		6.32				6.75				4.39			6.36				9.36
Return on average assets excluding the impact of privatization transaction ^{(3) (4)}		0.90				0.93				0.65			0.90				1.28
Return on average stockholder's equity excluding the impact of privatization transaction ^{(3) (4)}		8.18				8.76				5.97			8.65				12.45
Efficiency ratio ⁽⁵⁾		71.83				71.86				78.27			76.21				67.77
Core efficiency ratio ^{(4) (5)}		66.18				68.76				69.12			66.12				63.17
Net interest margin ^{(3) (6)}		3.29				3.27				3.29			3.31				3.44

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.78		%		13.73		%		13.82	%		13.09		%		13.08		%
Total risk-based capital ratio ⁽⁷⁾		15.53				15.77				15.98			15.41				15.41
Leverage ratio ⁽⁷⁾		11.58				11.35				11.44			10.96				10.96
Tier 1 common capital ratio ^{(7) (8)}		13.78				13.73				13.82			13.09				13.08
Tangible common equity ratio ⁽⁹⁾		11.04				10.20				10.20			10.10				10.29

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 2

	As of and for the Six Months Ended								Percent Change to June 30, 2012 from
	June 30,				June 30,				June 30,
(Dollars in millions)	2012				2011				2011
Results of operations:
Net interest income	$	1,312			$	1,232				6		%
Noninterest income		377				480				(21	)
Total revenue		1,689				1,712				(1	)
Noninterest expense		1,213				1,193				2
Pre-tax, pre-provision income ⁽¹⁾		476				519				(8	)
(Reversal of) provision for loan losses		(15	)			(196	)			92
Income before income taxes and including noncontrolling interests		491				715				(31	)
Income tax expense		118				245				(52	)
Net income including noncontrolling interests		373				470				(21	)
Deduct: Net loss from noncontrolling interests		9				7				29
Net income attributable to UNBC	$	382			$	477				(20	)

Balance sheet (end of period):
Total assets	$	87,939			$	80,093				10
Total securities		22,890				19,430				18
Total loans held for investment		54,291				48,967				11
Core deposits ⁽²⁾		53,378				48,156				11
Total deposits		63,443				57,181				11
Long-term debt		6,444				7,069				(9	)
UNBC stockholder's equity		12,076				10,667				13

Balance sheet (period average):
Total assets	$	89,464			$	80,195				12
Total securities		24,244				21,069				15
Total loans held for investment		54,543				48,568				12
Earning assets		80,564				71,531				13
Total deposits		64,462				58,899				9
UNBC stockholder's equity		11,763				10,268				15

Performance ratios:
Return on average assets ⁽³⁾		0.86		%		1.20		%
Return on average UNBC stockholder's equity ⁽³⁾		6.53				9.37
Return on average assets excluding the impact of privatization transaction ^{(3) (4)}		0.91				1.26
Return on average stockholders' equity excluding the impact of privatization transaction ^{(3) (4)}		8.47				12.43
Efficiency ratio ⁽⁵⁾		71.84				69.70
Core efficiency ratio ^{(4) (5)}		67.47				65.10
Net interest margin ^{(3) (6)}		3.28				3.46

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.78		%		13.08		%
Total risk-based capital ratio ⁽⁷⁾		15.53				15.41
Leverage ratio ⁽⁷⁾		11.58				10.96
Tier 1 common capital ratio ^{(7) (8)}		13.78				13.08
Tangible common equity ratio ⁽⁹⁾		11.04				10.29

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Credit Quality (Unaudited)
Exhibit 3

																				Percent Change to
	As of and for the Three Months Ended																			June 30, 2012 from
	June 30,				March 31,				December 31,			September 30,				June 30,				March 31,			June 30,
(Dollars in millions)	2012				2012				2011			2011				2011				2012			2011

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(13	)		$	1			$	7		$	(13	)		$	(92	)		nm		%	86		%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(1	)			(2	)			-			-				(2	)		50			50
(Reversal of) provision for losses on off-balance sheet commitments		(1	)			(2	)			2			-				(18	)		50			94
Total (reversal of) provision for credit losses	$	(15	)		$	(3	)		$	9		$	(13	)		$	(112	)		(400	)		87
Net loans charged off	$	31			$	53			$	28		$	44			$	111			(42	)		(72	)
Nonperforming assets		658				706				782			870				865			(7	)		(24	)
Criticized loans held for investment, excluding FDIC covered loans ⁽¹⁰⁾		1,298				1,519				1,920			1,972				2,548			(15	)		(49	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment		1.21		%		1.30		%		1.43	%		1.51		%		1.69		%
Nonaccrual loans		118.63				121.35				119.58			105.97				114.05
Allowance for credit losses to ⁽¹¹⁾:
Total loans held for investment		1.45				1.54				1.68			1.76				1.96
Nonaccrual loans		142.20				144.01				140.46			124.09				132.19
Net loans charged off to average total loans held for investment ⁽³⁾		0.22				0.40				0.21			0.35				0.91
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)		1.21				1.30				1.46			1.70				1.76
Nonperforming assets to total assets		0.75				0.76				0.87			1.04				1.08
Nonaccrual loans to total loans held for investment		1.02				1.07				1.19			1.42				1.48

Excluding FDIC covered assets ⁽¹²⁾:
Allowance for loan losses to:
Total loans held for investment		1.22		%		1.30		%		1.42	%		1.51		%		1.70		%
Nonaccrual loans		127.22				129.95				126.26			112.28				124.09
Allowance for credit losses to ⁽¹¹⁾:
Total loans held for investment		1.46				1.54				1.67			1.77				1.97
Nonaccrual loans		152.64				154.55				148.80			131.92				144.23
Net loans charged off to average total loans held for investment ⁽³⁾		0.21				0.41				0.21			0.36				0.92
Nonperforming assets to total loans held for investment and OREO		1.01				1.04				1.17			1.38				1.42
Nonperforming assets to total assets		0.62				0.61				0.70			0.83				0.86
Nonaccrual loans to total loans held for investment		0.96				1.00				1.12			1.34				1.37


	As of and for the								Percent Change to
	Six Months Ended								June 30, 2012 from
	June 30,				June 30,				June 30,
(Dollars in millions)	2012				2011				2011

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(12	)		$	(194	)			94			%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(3	)			(2	)			(50			)
(Reversal of) provision for losses on off-balance sheet commitments		(3	)			(31	)			90
Total (reversal of) provision for credit losses	$	(18	)		$	(227	)			92
Net loans charged off	$	84			$	164				(49			)
Nonperforming assets		658				865				(24			)

Credit Ratios:
Net loans charged off to average total loans held for investment ⁽³⁾		0.31		%		0.68		%
Nonperforming assets to total assets		0.75				1.08

Excluding FDIC covered assets ⁽¹²⁾:
Net loans charged off to average total loans held for investment ⁽³⁾		0.31		%		0.69		%
Nonperforming assets to total assets		0.62				0.86

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 4

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in millions)	2012			2012			2011			2011			2011
Interest Income
Loans	$	621		$	606		$	603		$	576		$	565
Securities		134			142			134			123			138
Other		-			2			2			3			2
Total interest income		755			750			739			702			705

Interest Expense
Deposits		57			58			57			53			53
Commercial paper and other short-term borrowings		3			3			1			2			2
Long-term debt		36			36			41			41			36
Total interest expense		96			97			99			96			91

Net Interest Income		659			653			640			606			614
(Reversal of) provision for loan losses		(14	)		(1	)		7			(13	)		(94	)
Net interest income after (reversal of) provision for loan losses		673			654			633			619			708

Noninterest Income
Service charges on deposit accounts		52			55			53			51			50
Trust and investment management fees		27			30			31			33			34
Trading account activities		25			31			38			27			28
Securities gains, net		28			19			-			1			29
Merchant banking fees		19			23			22			27			29
Brokerage commissions and fees		11			10			10			12			12
Card processing fees, net		8			8			9			17			18
Other		5			26			(12	)		17			40
Total noninterest income		175			202			151			185			240

Noninterest Expense
Salaries and employee benefits		351			364			347			348			346
Net occupancy and equipment		64			68			71			64			67
Professional and outside services		47			46			55			55			55
Intangible asset amortization		21			21			32			25			24
Regulatory assessments		16			18			15			14			19
(Reversal of) provision for losses on off-balance sheet commitments		(1	)		(2	)		2			-			(18	)
Other		101			99			97			97			85
Total noninterest expense		599			614			619			603			578

Income before income taxes and including noncontrolling interests		249			242			165			201			370
Income tax expense		67			51			40			33			131
Net Income including Noncontrolling Interests		182			191			125			168			239
Deduct: Net loss from noncontrolling interests		5			4			4			4			3
Net Income attributable to UNBC	$	187		$	195		$	129		$	172		$	242

UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 5

	For the Six Months Ended
	June 30,			June 30,
(Dollars in millions)	2012			2011
Interest Income
Loans	$	1,227		$	1,124
Securities		276			281
Other		2			3
Total interest income		1,505			1,408

Interest Expense
Deposits		115			106
Commercial paper and other short-term borrowings		6			3
Long-term debt		72			67
Total interest expense		193			176

Net Interest Income		1,312			1,232
(Reversal of) provision for loan losses		(15	)		(196	)
Net interest income after (reversal of) provision for loan losses		1,327			1,428

Noninterest Income
Service charges on deposit accounts		107			102
Trust and investment management fees		57			68
Trading account activities		56			61
Securities gains, net		47			57
Merchant banking fees		42			48
Brokerage commissions and fees		21			25
Card processing fees, net		16			33
Other		31			86
Total noninterest income		377			480

Noninterest Expense
Salaries and employee benefits		715			690
Net occupancy and equipment		132			132
Professional and outside services		93			99
Intangible asset amortization		42			49
Regulatory assessments		34			40
(Reversal of) provision for losses on off-balance sheet commitments		(3	)		(31	)
Other		200			214
Total noninterest expense		1,213			1,193

Income before income taxes and including noncontrolling interests		491			715
Income tax expense		118			245
Net Income including Noncontrolling Interests		373			470
Deduct: Net loss from noncontrolling interests		9			7

Net Income attributable to UNBC	$	382		$	477

UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
Exhibit 6

	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in millions except for per share amount)	2012			2012			2011			2011			2011
Assets
Cash and due from banks	$	1,396		$	1,371		$	1,419		$	1,277		$	1,233
Interest bearing deposits in banks (includes $8 at June 30, 2012, March 31, 2012 and December 31, 2011, $7 at September 30, 2011 and $24 at June 30, 2011 related to consolidated variable interest entities (VIEs))		1,479			3,260			2,764			2,757			2,477
Federal funds sold and securities purchased under resale agreements		46			8			12			28			78
Total cash and cash equivalents		2,921			4,639			4,195			4,062			3,788
Trading account assets (includes $34 at June 30, 2012, $3 at March 31, 2012, $14 at December 31, 2011, $6 at September 30, 2011 and $1 at June 30, 2011 of assets pledged as collateral)		1,237			1,177			1,135			1,120			898
Securities available for sale (includes $340 at June 30, 2011 of securities pledged as collateral)		20,545			23,366			22,833			19,633			18,098
Securities held to maturity (Fair value: June 30, 2012, $2,536 March 31, 2012, $2,278; December 31, 2011, $1,429; September 30, 2011, $1,474; and June 30, 2011, $1,610)		2,345			2,066			1,273			1,329			1,332
Loans held for investment:
Loans, excluding FDIC covered loans		53,593			53,473			52,591			49,904			47,718
FDIC covered loans		698			849			949			1,094			1,249
Total loans held for investment		54,291			54,322			53,540			50,998			48,967
Allowance for loan losses		(656	)		(704	)		(764	)		(768	)		(826	)
Loans held for investment, net		53,635			53,618			52,776			50,230			48,141
Premises and equipment, net		649			663			684			673			686
Intangible assets, net		318			341			360			383			407
Goodwill		2,457			2,456			2,457			2,447			2,447
FDIC indemnification asset		449			521			598			616			650
Other assets (includes $331 at June 30, 2012, $278 at March 31, 2012, $286 at December 31, 2011, $290 at September 30, 2011 and $272 at June 30, 2011 related to consolidated VIEs)		3,383			3,476			3,365			3,520			3,646
Total assets	$	87,939		$	92,323		$	89,676		$	84,013		$	80,093

Liabilities
Deposits:
Noninterest bearing	$	20,777		$	20,488		$	20,598		$	19,630		$	17,708
Interest bearing		42,666			44,601			43,822			40,824			39,473
Total deposits		63,443			65,089			64,420			60,454			57,181
Commercial paper and other short-term borrowings		3,035			6,680			3,683			2,455			2,838
Long-term debt (includes $8 at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011 related to consolidated VIEs)		6,444			5,554			6,684			7,064			7,069
Trading account liabilities		976			922			1,040			946			730
Other liabilities (includes $1 at June 30, 2012, March 31, 2012 and December 31, 2011, $3 at September 30, 2011 and $2 at June 30, 2011 related to consolidated VIEs)		1,712			1,996			2,019			1,925			1,338
Total liabilities		75,610			80,241			77,846			72,844			69,156

Equity
UNBC Stockholder's Equity:
Common stock, par value $1 per share:
Authorized 300,000,000 shares; 136,330,830 shares issued and outstanding as of June 30, 2012, March 31, 2012 and December 31, 2011, and 136,330,829 shares issued and outstanding as of September 30, 2011 and June 30, 2011		136			136			136			136			136
Additional paid-in capital		5,985			5,992			5,989			5,203			5,199
Retained earnings		6,628			6,441			6,246			6,117			5,945
Accumulated other comprehensive loss		(673	)		(748	)		(809	)		(556	)		(613	)
Total UNBC stockholder's equity		12,076			11,821			11,562			10,900			10,667
Noncontrolling interests		253			261			268			269			270
Total equity		12,329			12,082			11,830			11,169			10,937
Total liabilities and equity	$	87,939		$	92,323		$	89,676		$	84,013		$	80,093

UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 7

	For the Three Months Ended
	June 30, 2012							March 31, 2012
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁶⁾		Rate ⁽³⁾⁽⁶⁾		Balance			Expense ⁽⁶⁾		Rate ⁽³⁾⁽⁶⁾
Assets
Loans held for investment: ⁽¹³⁾
Commercial and industrial	$	20,155		$	194	3.86	%	$	19,650		$	187	3.83	%
Commercial mortgage		8,276			82	3.97			8,274			85	4.11
Construction		709			8	4.67			803			8	3.94
Lease financing		1,015			11	4.33			1,021			11	4.25
Residential mortgage		20,357			220	4.31			19,802			216	4.36
Home equity and other consumer loans		3,634			35	3.87			3,692			36	3.94
Total loans, excluding FDIC covered loans		54,146			550	4.07			53,242			543	4.09
FDIC covered loans		791			73	37.42			907			66	29.04
Total loans held for investment		54,937			623	4.55			54,149			609	4.51
Securities		24,223			135	2.22			24,265			142	2.35
Interest bearing deposits in banks		1,093			-	0.26			1,731			2	0.25

Federal funds sold and securities purchased under resale agreements		64			-	0.22			61			-	0.21
Trading account assets		175			-	0.57			151			-	0.62
Other earning assets		133			-	0.21			146			-	0.10
Total earning assets		80,625			758	3.77			80,503			753	3.75
Allowance for loan losses		(709	)						(765	)
Cash and due from banks		1,313							1,326
Premises and equipment, net		659							673
Other assets		7,591							7,712
Total assets	$	89,479						$	89,449
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	25,646			14	0.22		$	25,609			14	0.22
Savings		5,311			2	0.16			5,278			2	0.16
Time		13,119			41	1.26			13,443			42	1.24
Total interest bearing deposits		44,076			57	0.52			44,330			58	0.52
Commercial paper and other short-term borrowings ⁽¹⁴⁾		4,691			3	0.26			4,335			3	0.29
Long-term debt		5,679			36	2.54			6,079			36	2.41
Total borrowed funds		10,370			39	1.51			10,414			39	1.53
Total interest bearing liabilities		54,446			96	0.71			54,744			97	0.71
Noninterest bearing deposits		20,423							20,095
Other liabilities		2,445							2,722
Total liabilities		77,314							77,561
Equity
UNBC Stockholder's equity		11,905							11,621
Noncontrolling interests		260							267
Total equity		12,165							11,888
Total liabilities and equity	$	89,479						$	89,449

Net interest income/spread
(taxable-equivalent basis)					662	3.06	%					656	3.04	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.04							0.04
Net interest margin						3.29							3.27
Less: taxable-equivalent adjustment					3							3
Net interest income				$	659						$	653


Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 8

	For the Three Months Ended
	June 30, 2012							June 30, 2011
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁶⁾		Rate ⁽³⁾⁽⁶⁾		Balance			Expense ⁽⁶⁾		Rate ⁽³⁾⁽⁶⁾
Assets
Loans held for investment: ⁽¹³⁾
Commercial and industrial	$	20,155		$	194	3.86	%	$	15,814		$	159	4.05	%
Commercial mortgage		8,276			82	3.97			7,726			84	4.31
Construction		709			8	4.67			1,116			11	4.03
Lease financing		1,015			11	4.33			775			8	3.99
Residential mortgage		20,357			220	4.31			18,324			221	4.83
Home equity and other consumer loans		3,634			35	3.87			3,782			40	4.23
Total loans, excluding FDIC covered loans		54,146			550	4.07			47,537			523	4.41
FDIC covered loans		791			73	37.42			1,312			44	13.33
Total loans held for investment		54,937			623	4.55			48,849			567	4.65
Securities		24,223			135	2.22			20,543			139	2.72
Interest bearing deposits in banks		1,093			-	0.26			2,086			1	0.24
Federal funds sold and securities purchased under resale agreements		64			-	0.22			71			-	0.10
Trading account assets		175			-	0.57			137			1	0.65
Other earning assets		133			-	0.21			23			-	2.18
Total earning assets		80,625			758	3.77			71,709			708	3.95
Allowance for loan losses		(709	)						(992	)
Cash and due from banks		1,313							1,208
Premises and equipment, net		659							692
Other assets		7,591							7,717
Total assets	$	89,479						$	80,334
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	25,646			14	0.22		$	23,667			14	0.24
Savings		5,311			2	0.16			4,979			4	0.30
Time		13,119			41	1.26			11,730			35	1.22
Total interest bearing deposits		44,076			57	0.52			40,376			53	0.53
Commercial paper and other short-term borrowings ⁽¹⁴⁾		4,691			3	0.26			3,113			2	0.23
Long-term debt		5,679			36	2.54			6,349			36	2.22
Total borrowed funds		10,370			39	1.51			9,462			38	1.57
Total interest bearing liabilities		54,446			96	0.71			49,838			91	0.73
Noninterest bearing deposits		20,423							17,957
Other liabilities		2,445							1,900
Total liabilities		77,314							69,695
Equity
UNBC Stockholder's equity		11,905							10,366
Noncontrolling interests		260							273
Total equity		12,165							10,639
Total liabilities and equity	$	89,479						$	80,334

Net interest income/spread
(taxable-equivalent basis)					662	3.06	%					617	3.22	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.04							0.03
Net interest margin						3.29							3.44
Less: taxable-equivalent adjustment					3							3
Net interest income				$	659						$	614


Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 9

	For the Six Months Ended
	June 30, 2012							June 30, 2011
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁶⁾		Rate ⁽⁶⁾		Balance			Expense ⁽⁶⁾		Rate ⁽⁶⁾
Assets
Loans held for investment: ⁽¹³⁾
Commercial and industrial	$	19,902		$	381	3.85	%	$	15,571		$	316	4.09	%
Commercial mortgage		8,275			167	4.04			7,752			169	4.35
Construction		756			16	4.28			1,228			23	3.73
Lease financing		1,018			22	4.29			775			16	4.16
Residential mortgage		20,080			436	4.33			18,061			441	4.88
Home equity and other consumer loans		3,663			71	3.90			3,802			80	4.26
Total loans, excluding FDIC covered loans		53,694			1,093	4.08			47,189			1,045	4.44
FDIC covered loans		849			139	32.94			1,379			83	12.06
Total loans held for investment		54,543			1,232	4.53			48,568			1,128	4.66
Securities		24,244			277	2.29			21,069			282	2.68
Interest bearing deposits in banks		1,412			2	0.26			1,645			2	0.24
Federal funds sold and securities purchased under resale agreements		63			-	0.22			83			-	0.15
Trading account assets		163			-	0.59			144			1	0.93
Other earning assets		139			-	0.16			22			-	2.81
Total earning assets		80,564			1,511	3.76			71,531			1,413	3.96
Allowance for loan losses		(737	)						(1,087	)
Cash and due from banks		1,320							1,226
Premises and equipment, net		666							702
Other assets		7,651							7,823
Total assets	$	89,464						$	80,195
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	25,627			28	0.22		$	24,573			29	0.24
Savings		5,295			4	0.16			4,969			7	0.27
Time		13,281			83	1.25			11,807			70	1.19
Total interest bearing deposits		44,203			115	0.52			41,349			106	0.52
Commercial paper and other short-term borrowings ⁽¹⁴⁾		4,513			6	0.28			2,776			3	0.25
Long-term debt		5,879			72	2.47			6,127			67	2.19
Total borrowed funds		10,392			78	1.52			8,903			70	1.59
Total interest bearing liabilities		54,595			193	0.71			50,252			176	0.70
Noninterest bearing deposits		20,259							17,550
Other liabilities		2,584							1,855
Total liabilities		77,438							69,657
Equity
UNBC Stockholder's equity		11,763							10,268
Noncontrolling interests		263							270
Total equity		12,026							10,538
Total liabilities and equity	$	89,464						$	80,195

Net interest income/spread
(taxable-equivalent basis)					1,318	3.05	%					1,237	3.26	%
Impact of noninterest bearing deposits						0.19							0.18
Impact of other noninterest bearing sources						0.04							0.02
Net interest margin						3.28							3.46
Less: taxable-equivalent adjustment					6							5
Net interest income				$	1,312						$	1,232


Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Loans and Nonperforming Assets (Unaudited)
Exhibit 10

	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in millions)	2012		2012		2011		2011		2011

Loans held for investment (period end)
Loans held for investment:
Commercial and industrial	$	19,465	$	19,429	$	19,226	$	17,545	$	15,854
Commercial mortgage		8,188		8,510		8,175		7,927		7,729
Construction		613		776		870		966		1,055
Lease financing		994		1,023		965		693		701
Total commercial portfolio		29,260		29,738		29,236		27,131		25,339
						19,625
Residential mortgage		20,729		20,081		19,625		19,043		18,610
Home equity and other consumer loans		3,604		3,654		3,730		3,730		3,769
Total consumer portfolio		24,333		23,735		23,355		22,773		22,379
Total loans held for investment, excluding FDIC covered loans		53,593		53,473		52,591		49,904		47,718
FDIC covered loans		698		849		949		1,094		1,249
Total loans held for investment	$	54,291	$	54,322	$	53,540	$	50,998	$	48,967

Nonperforming Assets (period end)
Nonaccrual loans:
Commercial and industrial	$	75	$	71	$	127	$	163	$	110
Commercial mortgage		101		120		139		206		230
Construction		-		16		16		16		47
Total commercial portfolio		176		207		282		385		387
Residential mortgage		293		301		285		259		242
Home equity and other consumer loans		44		26		24		25		23
Total consumer portfolio		337		327		309		284		265
Total nonaccrual loans, excluding FDIC covered loans		513		534		591		669		652
FDIC covered loans		40		46		47		56		72
Total nonaccrual loans		553		580		638		725		724

OREO		26		24		27		21		26
FDIC covered OREO		79		102		117		124		115

Total nonperforming assets	$	658	$	706	$	782	$	870	$	865

Total nonperforming assets, excluding FDIC covered assets	$	539	$	558	$	618	$	690	$	678

Loans 90 days or more past due and still accruing⁽¹⁵⁾	$	1	$	2	$	1	$	3	$	2

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Allowance for Credit Losses (Unaudited)
Exhibit 11

	As of and for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in millions)	2012			2012			2011			2011			2011

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	704		$	764		$	768		$	826		$	1,034
(Reversal of) provision for loan losses, excluding FDIC covered loans		(13	)		1			7			(13	)		(92	)
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(1	)		(2	)		-			-			(2	)
Increase (decrease) in allowance covered by FDIC indemnification		(3	)		(6	)		-			-			(3	)
Other ⁽¹⁶⁾		-			-			17			(1	)		-

Loans charged off:
Commercial and industrial		(10	)		(34	)		(7	)		(20	)		(11	)
Commercial mortgage		(5	)		(6	)		(14	)		(10	)		(14	)
Construction		(11	)		-			-			-			(3	)
Lease financing		-			-			(14	)		(5	)		(71	)
Total commercial portfolio		(26	)		(40	)		(35	)		(35	)		(99	)
Residential mortgage		(9	)		(12	)		(9	)		(12	)		(13	)
Home equity and other consumer loans		(7	)		(11	)		(10	)		(8	)		(10	)
Total consumer portfolio		(16	)		(23	)		(19	)		(20	)		(23	)
FDIC covered loans		(2	)		-			-			(2	)		(1	)
Total loans charged off		(44	)		(63	)		(54	)		(57	)		(123	)

Recoveries of loans previously charged off:
Commercial and industrial		8			4			8			5			8
Commercial mortgage		-			3			15			1			2
Construction		5			1			2			4			2
Total commercial portfolio		13			8			25			10			12
Residential mortgage		-			-			-			1			-
Home equity and other consumer loans		-			1			-			1			-
Total consumer portfolio		-			1			-			2			-
FDIC covered loans		-			1			1			1			-
Total recoveries of loans previously charged off		13			10			26			13			12
Net loans charged off		(31	)		(53	)		(28	)		(44	)		(111	)

Ending balance of allowance for loan losses		656			704			764			768			826
Allowance for losses on off-balance sheet commitments		130			131			133			131			131
Total allowance for credit losses	$	786		$	835		$	897		$	899		$	957

Components of allowance for loan losses:

Allowance for loan losses, excluding allowance on FDIC covered loans	$	652		$	694		$	747		$	751		$	809
Allowance for loan losses on FDIC covered loans		4			10			17			17			17

Total allowance for loan losses	$	656		$	704		$	764		$	768		$	826

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Securities Available for Sale (Unaudited)
Exhibit 12

									Fair Value			Fair Value
	June 30, 2012				March 31, 2012				Amount Change from			% Change from
	Amortized		Fair		Amortized		Fair		March 31,			March 31,
(Dollars in millions)	Cost		Value		Cost		Value		2012			2012

U.S. government sponsored agencies	$	5,393	$	5,459	$	7,061	$	7,103	$	(1,644	)	(23	)	%
Residential mortgage-backed securities:
U.S. government and government sponsored agencies		11,125		11,337		13,615		13,809		(2,472	)	(18	)
Privately issued		653		623		719		688		(65	)	(9	)
Commercial mortgage-backed securities		1,503		1,554		1,212		1,251		303		24
Other debt securities		1,480		1,486		458		462		1,024		222
Equity securities		86		86		53		53		33		62
Total securities available for sale	$	20,240	$	20,545	$	23,118	$	23,366	$	(2,821	)	(12	)	%

UnionBanCal Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures (Unaudited)
Exhibit 13

The following table presents a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios.

	As of and for the Three Months Ended																				For the Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
(Dollars in millions)	2012				2012				2011				2011				2011				2012				2011

Net income attributable to UNBC	$	187			$	195			$	129			$	172			$	242			$	382			$	477
Net adjustments related to privatization transaction, net of tax		7				6				10				10				6				13				9
Net income attributable to UNBC, excluding impact of privatization transaction	$	194			$	201			$	139			$	182			$	248			$	395			$	486

Average total assets	$	89,479			$	89,449			$	87,079			$	82,197			$	80,334			$	89,464			$	80,195
Net adjustments related to privatization transaction		2,377				2,394				2,419				2,442				2,459				2,385				2,466
Average total assets, excluding impact of privatization transaction	$	87,102			$	87,055			$	84,660			$	79,755			$	77,875			$	87,079			$	77,729
Return on average assets ⁽³⁾		0.84		%		0.88		%		0.59		%		0.83		%		1.21		%		0.86		%		1.20		%
Return on average assets, excluding impact of privatization transaction ^{(3) (4)}		0.90				0.93				0.65				0.90				1.28				0.91				1.26

Average UNBC stockholder's equity	$	11,905			$	11,621			$	11,646			$	10,708			$	10,366			$	11,763			$	10,268
Net adjustments related to privatization transaction		2,371				2,375				2,380				2,385				2,390				2,373				2,393
Average UNBC stockholder's equity, excluding impact of privatization transaction	$	9,534			$	9,246			$	9,266			$	8,323			$	7,976			$	9,390			$	7,875
Return on average UNBC stockholder's equity ⁽³⁾		6.32		%		6.75		%		4.39		%		6.36		%		9.36		%		6.53		%		9.37		%
Return on average UNBC stockholder's equity, excluding impact of privatization transaction ^{(3) (4)}		8.18				8.76				5.97				8.65				12.45				8.47				12.43

Noninterest expense	$	599			$	614			$	619			$	603			$	578			$	1,213			$	1,193
Less: Foreclosed asset expense		1				1				3				4				2				2				5
Less: (Reversal of) provision for losses on off-balance sheet commitments		(1	)			(2	)			2				-				(18	)			(3	)			(31	)
Less: Productivity initiative costs		2				6				14				33				5				8				8
Less: Low income housing credit (LIHC) investment amortization expense		18				13				23				15				18				31				31
Less: Expenses of the LIHC consolidated VIEs		8				7				6				6				6				15				12
Less: Merger costs related to acquisitions		3				1				-				1				10				4				23
Net noninterest expense before privatization adjustments	$	568			$	588			$	571			$	544			$	555			$	1,156			$	1,145
Net adjustments related to privatization transaction		21				22				32				26				25				43				51
Net noninterest expense, excluding impact of privatization transaction (a)	$	547			$	566			$	539			$	518			$	530			$	1,113			$	1,094

Total revenue	$	834			$	855			$	791			$	791			$	854			$	1,689			$	1,712
Add: Net interest income taxable-equivalent adjustment		3				3				2				2				3				6				5
Less: Productivity initiative gains		-				23				-				-				-				23				-
Total revenue before privatization adjustments		837				835				793				793				857				1,672				1,717
Accretion related to privatization-related fair value adjustments		10				11				15				10				16				21				37
Total revenue, excluding impact of privatization transaction (b)	$	827			$	824			$	778			$	783			$	841			$	1,651			$	1,680
Core efficiency ratio, excluding impact of privatization transaction (a)/(b) ⁽⁴⁾ ⁽⁵⁾		66.18				68.76				69.12				66.12				63.17				67.47				65.10

Total UNBC stockholder's equity	$	12,076			$	11,821			$	11,562			$	10,900			$	10,667
Less: Goodwill		2,457				2,456				2,457				2,447				2,447
Less: Intangible assets		318				341				360				383				407
Less: Deferred tax liabilities related to goodwill and intangible assets		(115	)			(123	)			(130	)			(140	)			(149	)
Tangible common equity (c)	$	9,416			$	9,147			$	8,875			$	8,210			$	7,962
Tier 1 capital, determined in accordance with regulatory requirements
Tier 1 common equity (d)	$	10,049			$	9,853			$	9,641			$	8,724			$	8,535
Total assets	$	87,939			$	92,323			$	89,676			$	84,013			$	80,093
Less: Goodwill		2,457				2,456				2,457				2,447				2,447
Less: Intangible assets		318				341				360				383				407
Less: Deferred tax liabilities related to goodwill and intangible assets		(115	)			(123	)			(130	)			(140	)			(149	)
Tangible assets (e)	$	85,279			$	89,649			$	86,989			$	81,323			$	77,388
Risk-weighted assets, determined in accordance with regulatory requirements (f) ⁽⁷⁾	$	72,929			$	71,752			$	69,738			$	66,628			$	65,274
Tangible common equity ratio (c)/(e) ⁽⁹⁾		11.04		%		10.20		%		10.20		%		10.10		%		10.29		%
Tier 1 common capital ratio (d)/(f) ^{(7) (8)}		13.78				13.73				13.82				13.09				13.08

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries

Footnotes
Exhibit 14


⁽¹⁾		The pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover loan losses through a credit cycle.
⁽²⁾		Core deposits exclude brokered deposits, foreign time deposits and domestic time deposits greater than $250,000.
⁽³⁾		Annualized.
⁽⁴⁾		These ratios exclude the impact of the privatization transaction. Management believes that these ratios, which exclude the push-down accounting effects of the privatization transaction, provide useful supplemental information regarding UnionBanCal's core business results. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁵⁾		The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income). The core efficiency ratio, a non-GAAP financial measure, is net noninterest expense (noninterest expense excluding privatization-related expenses and fair value amortization/accretion, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated VIEs, merger costs related to acquisitions and certain costs related to productivity initiatives) as a percentage of total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding impact of privatization and gains from productivity initiatives related to the sale of certain business units in 2012. Management discloses the core efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our core activities. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁶⁾		Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.
⁽⁷⁾		Estimated as of June 30, 2012.
⁽⁸⁾		The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, if any, to risk-weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, facilitates the understanding of UnionBanCal's capital structure and is used to assess and compare the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁹⁾		The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio facilitates the understanding of UnionBanCal's capital structure and is used to assess and compare the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽¹⁰⁾		Criticized loans held for investment, excluding FDIC covered loans reflect loans in the commercial portfolio segment that are monitored for credit quality based on internal ratings. Amounts exclude small business loans, which are monitored by business credit score and delinquency status.
⁽¹¹⁾		The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments.
⁽¹²⁾		These ratios exclude the impact of the FDIC covered loans, the related allowance for loan losses and FDIC covered OREO, which are covered under loss share agreements between Union Bank, N.A. and the Federal Deposit Insurance Corporation. Such agreements are related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank. Management believes the exclusion of FDIC covered loans and FDIC covered OREO in certain asset quality ratios that include nonperforming loans, nonperforming assets, total loans held for investment and the allowance for loan losses or credit losses in the numerator or denominator provides a better perspective into underlying asset quality trends.
⁽¹³⁾		Average balances on loans outstanding include all nonperforming loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.
⁽¹⁴⁾		Includes interest bearing trading liabilities.
⁽¹⁵⁾		Excludes loans totaling $124 million, $144 million, $165 million, $198 million, and $251 million that are 90 days or more past due and still accruing at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, and June 30, 2011 respectively, which consist of FDIC covered loans accounted for in accordance with the accounting standards for purchased credit impaired loans.
⁽¹⁶⁾		"Other" includes a $16 million allowance for loan losses transfer attributed to an internal reorganization on October 1, 2011 in which The Bank of Tokyo-Mitsubishi UFJ transferred its trust company, The Bank of Tokyo-Mitsubishi UFJ Trust Company (BTMUT) to UnionBanCal.

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CONTACT:
UnionBanCal Corporation
Thomas Taggart, 415-765-2249
Corporate Communications
Michelle Crandall, 415-765-2780
Investor Relations

MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 26, 2012

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MUFG Americas Holdings Corp Reports