MUFG Americas Holdings Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - 8-K - MUFG Americas Holdings Corp	muah8kq22015.htm
EX-99.1 - EXHIBIT 99.1 - MUFG Americas Holdings Corp	muahearningsex991q22015.htm

MUFG Americas Holdings Corporation Exhibit 99.2

FINANCIAL SUPPLEMENT JUNE 30, 2015

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															June 30, 2015 from
(Dollars in millions)	June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾			June 30, 2014 ⁽¹⁾			March 31, 2015		June 30, 2014
Results of operations:
Net interest income	$	719		$	683		$	709		$	707		$	763		5	%	(6	)%
Noninterest income	385			335			352			388			202			15		91
Total revenue	1,104			1,018			1,061			1,095			965			8		14
Noninterest expense	843			849			797			764			635			(1	)	33
Pre-tax, pre-provision income ⁽²⁾	261			169			264			331			330			54		(21	)
(Reversal of) provision for credit losses	15			3			(1		)	1			6			400		150
Income before income taxes and including
noncontrolling interests	246			166			265			330			324			48		(24	)
Income tax expense	71			34			117			88			84			109		(15	)
Net income including noncontrolling interests	175			132			148			242			240			33		(27	)
Deduct: Net loss from noncontrolling interests	6			5			5			5			4			20		50
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	181		$	137		$	153		$	247		$	244		32		(26	)

Balance sheet (end of period):
Total assets	$	114,266		$	113,698		$	113,623		$	110,867		$	108,809		—		5
Total securities	24,287			22,463			22,015			22,522			22,847			8		6
Total loans held for investment	76,399			76,808			76,804			74,635			72,369			(1	)	6
Core deposits ⁽³⁾	73,080			74,190			76,666			73,608			72,058			(1	)	1
Total deposits	81,702			82,741			86,004			82,356			81,566			(1	)	—
Long-term debt	8,852			8,856			6,972			6,984			6,995			—		27
MUAH stockholder's equity	15,278			15,200			14,922			14,990			14,753			1		4

Balance sheet (period average):
Total assets	$	112,907		$	113,134		$	112,589		$	109,739		$	107,871		—		5
Total securities	22,915			22,172			22,171			22,592			22,865			3		—
Total loans held for investment	76,751			77,305			75,795			73,353			71,104			(1	)	8
Earning assets	102,289			102,645			101,430			98,933			97,405			—		5
Total deposits	82,147			84,088			84,036			82,239			81,221			(2	)	1
MUAH stockholder's equity	15,238			15,069			15,202			14,969			14,657			1		4

Performance ratios:
Return on average assets ⁽⁴⁾	0.64		%	0.49		%	0.54		%	0.90		%	0.91		%
Return on average MUAH stockholder's equity ⁽⁴⁾	4.73			3.65			4.02			6.60			6.66
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(4) (5)}	0.67			0.53			0.62			0.94			0.95
Return on average MUAH stockholder's equity excluding the
impact of privatization transaction and merger costs related to
acquisitions ^{(4) (5)}	5.69			4.51			5.23			7.87			8.02
Efficiency ratio ⁽⁶⁾	76.42			83.35			75.07			69.86			65.71
Adjusted efficiency ratio ⁽⁷⁾	69.02			74.90			67.24			63.42			60.30
Net interest margin ^{(4) (8)}	2.84			2.70			2.81			2.87			3.15

Capital ratios:

Regulatory:	U.S. Basel III						U.S. Basel I			U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(9) (10)}	13.56		%	12.64		%	n/a			12.66		%	12.58		%
Tier 1 risk-based capital ratio ^{(9) (10)}	13.56			12.64			12.79		%	12.70			12.62
Total risk-based capital ratio ^{(9) (10)}	15.30			14.41			14.74			14.60			14.57
Tier 1 leverage ratio ^{(9) (10)}	11.46			11.30			11.25			11.43			11.35

Other:
Tangible common equity ratio ⁽¹¹⁾	10.72		%	10.69		%	10.49		%	10.74		%	10.78		%
Tier 1 common capital ratio ^{(9) (10) (12)}	n/a			n/a			12.74			n/a			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) ^{(9) (13)}	n/a			n/a			12.85			n/a			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) ^{(9) (14)}	13.49			12.57			12.56			12.47			12.13

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 1

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



	As of and for the Six Months Ended						Percent Change to
	June 30,			June 30,			June 30, 2015 from
(Dollars in millions)	2015			2014 ⁽¹⁾			June 30, 2014
Results of operations:
Net interest income	$	1,402		$	1,446			(3	)%
Noninterest income	720			383				88
Total revenue	2,122			1,829				16
Noninterest expense	1,692			1,262				34
Pre-tax, pre-provision income ⁽²⁾	430			567				(24	)
Provision for credit losses	18			6				200
Income before income taxes and including
noncontrolling interests	412			561				(27	)
Income tax expense	105			154				(32	)
Net income including noncontrolling interests	307			407				(25	)
Deduct: Net loss from noncontrolling interests	11			9				22
Net income attributable to MUAH	$	318		$	416			(24	)

Balance sheet (end of period):
Total assets	$	114,266		$	108,809			5
Total securities	24,287			22,847				6
Total loans held for investment	76,399			72,369				6
Core deposits ⁽³⁾	73,080			72,058				1
Total deposits	81,702			81,566				—
Long-term debt	8,852			6,995				27
MUAH stockholder's equity	15,278			14,753				4

Balance sheet (period average):
Total assets	$	113,020		$	107,185			5
Total securities	22,546			22,739				(1	)
Total loans held for investment	77,026			70,203				10
Earning assets	102,443			96,756				6
Total deposits	83,112			80,829				3
MUAH stockholder's equity	15,154			14,524				4

Performance ratios:
Return on average assets ⁽⁴⁾	0.56		%	0.78		%
Return on average MUAH stockholder's equity ⁽⁴⁾	4.19			5.73
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}	0.60			0.83
Return on average MUAH stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}	5.10			7.03
Efficiency ratio ⁽⁶⁾	79.75			68.97
Adjusted efficiency ratio ⁽⁷⁾	71.86			63.91
Net interest margin ^{(4) (8)}	2.77			3.02

___________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 2

MUFG Americas Holdings Corporation and Subsidiaries

Credit Quality (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															June 30, 2015 from
(Dollars in millions)	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2015		June 30, 2014

Credit Data:
(Reversal of) provision for loan losses	$	26		$	(3	)	$	9		$	(18	)	$	9		nm		189	%
(Reversal of) provision for losses on unfunded credit commitments	(11		)	6			(10		)	19			(3		)	(283	)%	(267	)
Total (reversal of) provision for credit losses	$	15		$	3		$	(1	)	$	1		$	6		400		150

Net loans charged-off (recovered)	$	20		$	3		$	(1	)	$	12		$	7		567		186
Nonperforming assets	381			390			411			428			547			(2	)	(30	)
Criticized loans held for investment ⁽¹⁵⁾	1,395			1,327			1,141			1,245			1,450			5		(4	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.70		%	0.69		%	0.70		%	0.71		%	0.77		%
Nonaccrual loans	147.98			147.21			143.35			131.28			108.90
Allowance for credit losses to ⁽¹⁶⁾:
Total loans held for investment	0.89			0.90			0.90			0.92			0.97
Nonaccrual loans	188.39			191.20			183.80			171.42			137.13
Net loans charged-off (recovered) to average total loans held for investment ⁽⁴⁾	0.10			0.01			—			0.06			0.04
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.50			0.51			0.53			0.57			0.75
Nonperforming assets to total assets	0.33			0.34			0.36			0.39			0.50
Nonaccrual loans to total loans held for investment	0.47			0.47			0.49			0.54			0.71


	As of and for the Six Months Ended						Percent Change
	June 30,			June 30,			to June 30, 2015
(Dollars in millions)	2015			2014			from June 30, 2014
Credit Data:
(Reversal of) provision for loan losses	$	23		$	(7	)	429%
(Reversal of) provision for losses on unfunded credit commitments	(5		)	13			(138)
Total provision for credit losses	$	18		$	6		200

Net loans charged-off	$	23		$	1		nm
Nonperforming assets	381			547			(30)
Credit Ratios:
Net loans charged-off to average total loans held for investment	0.06		%	—		%
Nonperforming assets to total assets	0.33			0.50

________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 3

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Three Months Ended
(Dollars in millions)			June 30, 2015		March 31, 2015		December 31, 2014⁽¹⁾			September 30, 2014⁽¹⁾		June 30, 2014⁽¹⁾
Interest Income
	Loans		$	700	$	678	$	696		$	693	$	749
	Securities		121		102		109			113		115
	Other		2		3		3			2		3
		Total interest income	823		783		808			808		867

Interest Expense
	Deposits		50		52		57			58		61
	Commercial paper and other short-term borrowings		2		1		1			1		2
	Long-term debt		52		47		41			42		41
		Total interest expense	104		100		99			101		104

Net Interest Income			719		683		709			707		763
	(Reversal of) provision for credit losses		15		3		(1		)	1		6
		Net interest income after (reversal of) provision for credit losses	704		680		710			706		757

Noninterest Income
	Service charges on deposit accounts		49		49		50			52		50
	Trust and investment management fees		26		28		26			26		26
	Trading account activities		19		8		8			33		14
	Securities gains, net		5		3		2			13		1
	Credit facility fees		30		30		33			30		31
	Merchant banking fees		20		20		35			38		27
	Brokerage commissions and fees		14		13		13			14		13
	Card processing fees, net		9		8		9			8		9
	Fees from affiliates ⁽¹⁷⁾		192		166		168			151		—
	Other, net		21		10		8			23		31
		Total noninterest income	385		335		352			388		202

Noninterest Expense
	Salaries and employee benefits		555		567		527			492		378
	Net occupancy and equipment		75		80		76			74		75
	Professional and outside services		64		77		72			66		63
	Intangible asset amortization		10		10		13			13		13
	Regulatory assessments		14		13		13			13		16
	Other		125		102		96			106		90
		Total noninterest expense	843		849		797			764		635

	Income before income taxes and including
	noncontrolling interests		246		166		265			330		324
	Income tax expense		71		34		117			88		84
Net Income including Noncontrolling Interests			175		132		148			242		240
	Deduct: Net loss from noncontrolling interests		6		5		5			5		4
Net Income attributable to MUAH			$	181	$	137	$	153		$	247	$	244

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 4

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Six Months Ended
(Dollars in millions)			June 30, 2015		June 30, 2014 ⁽¹⁾
Interest Income
	Loans		$	1,378	$	1,416
	Securities		223		230
	Other		5		8
		Total interest income	1,606		1,654

Interest Expense
	Deposits		102		123
	Commercial paper and other short-term borrowings		3		3
	Long-term debt		99		82
		Total interest expense	204		208

Net Interest Income			1,402		1,446
	Provision for credit losses		18		6
		Net interest income after provision for credit losses	1,384		1,440

Noninterest Income
	Service charges on deposit accounts		98		101
	Trust and investment management fees		54		52
	Trading account activities		27		30
	Securities gains, net		8		3
	Credit facility fees		60		59
	Merchant banking fees		40		51
	Brokerage commissions and fees		27		26
	Card processing fees, net		17		17
	Fees from affiliates ⁽¹⁷⁾		358		—
	Other, net		31		44
		Total noninterest income	720		383

Noninterest Expense
	Salaries and employee benefits		1,122		766
	Net occupancy and equipment		155		146
	Professional and outside services		141		118
	Intangible asset amortization		20		26
	Regulatory assessments		27		31
	Other		227		175
		Total noninterest expense	1,692		1,262

	Income before income taxes and including
	noncontrolling interests		412		561
	Income tax expense		105		154
Net Income including Noncontrolling Interests			307		407
	Deduct: Net loss from noncontrolling interests		11		9
Net Income attributable to MUAH			$	318	$	416

___________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 5

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)



(Dollars in millions except for per share amount)				June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾			June 30, 2014 ⁽¹⁾
Assets
Cash and due from banks				$	1,815		$	1,735		$	1,759		$	1,593		$	1,911
Interest bearing deposits in banks				2,160			2,787			3,930			2,772			2,353
Federal funds sold and securities purchased under resale agreements				68			92			62			154			65
		Total cash and cash equivalents		4,043			4,614			5,751			4,519			4,329
Trading account assets				1,089			1,233			1,114			883			941
Securities available for sale				14,285			13,338			13,724			14,064			14,670
Securities held to maturity:
	Securities held to maturity			10,002			9,125			8,291			8,458			8,177
Loans held for investment				76,399			76,808			76,804			74,635			72,369
	Allowance for loan losses			(536		)	(530		)	(537		)	(529		)	(559		)
		Loans held for investment, net		75,863			76,278			76,267			74,106			71,810
Premises and equipment, net				622			623			621			617			632
Goodwill				3,225			3,225			3,225			3,227			3,227
Other assets				5,137			5,262			4,630			4,993			5,023
			Total assets	$	114,266		$	113,698		$	113,623		$	110,867		$	108,809

Liabilities
Deposits:
	Noninterest bearing			$	30,156		$	29,854		$	30,534		$	28,676		$	27,446
	Interest bearing			51,546			52,887			55,470			53,680			54,120
		Total deposits		81,702			82,741			86,004			82,356			81,566
Commercial paper and other short-term borrowings				5,262			3,475			2,704			3,876			2,870
Long-term debt				8,852			8,856			6,972			6,984			6,995
Trading account liabilities				734			944			894			596			664
Other liabilities				2,232			2,266			1,897			1,826			1,717
			Total liabilities	98,782			98,282			98,471			95,638			93,812

Equity
MUAH stockholder's equity:
	Common stock, par value $1 per share:
		Authorized 300,000,000 shares; 136,330,831 shares issued and outstanding as of June 30, 2015, March 31, 2015 and December 31, 2014; and 136,330,830 as of September 30, 2014 and June 30, 2014, respectively		136			136			136			136			136
	Additional paid-in capital			7,208			7,241			7,232			7,223			7,184
	Retained earnings			8,600			8,420			8,283			8,130			7,874
	Accumulated other comprehensive loss			(666		)	(597		)	(729		)	(499		)	(441		)
			Total MUAH stockholder's equity	15,278			15,200			14,922			14,990			14,753
Noncontrolling interests				206			216			230			239			244
			Total equity	15,484			15,416			15,152			15,229			14,997
			Total liabilities and equity	$	114,266		$	113,698		$	113,623		$	110,867		$	108,809

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	June 30, 2015								March 31, 2015
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾			Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾
Assets
Loans held for investment: ⁽¹⁸⁾
Commercial and industrial	$	28,107		$	238	3.40		%	$	28,394		$	223	3.18	%
Commercial mortgage	13,859			116		3.33			13,903			115		3.31
Construction	2,045			15		2.94			1,853			14		3.03
Lease financing	772			10		5.40			776			10		5.11
Residential mortgage	28,399			239		3.37			28,766			247		3.43
Home equity and other consumer loans	3,096			33		4.30			3,103			32		4.22
Loans, before purchased credit-impaired loans	76,278			651		3.42			76,795			641		3.36
Purchased credit-impaired loans	473			50		41.89			510			38		30.49
Total loans held for investment	76,751			701		3.66			77,305			679		3.54
Securities	22,915			126		2.20			22,172			106		1.92
Interest bearing deposits in banks	2,275			1		0.26			2,776			2		0.25
Federal funds sold and securities purchased under resale agreements	69			—		(0.47	)		97			—		—
Trading account assets	196			1		0.71			196			—		0.70
Other earning assets	83			—		4.00			99			1		2.07
Total earning assets	102,289			829		3.25			102,645			788		3.09
Allowance for loan losses	(535		)						(542		)
Cash and due from banks	1,619								1,631
Premises and equipment, net	615								621
Other assets ⁽¹⁹⁾	8,919								8,779
Total assets	$	112,907							$	113,134
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,986		29		0.31			$	39,713		30		0.31
Savings	5,588			1		0.06			5,550			1		0.06
Time	8,535			20		0.95			8,975			21		0.93
Total interest bearing deposits	52,109			50		0.39			54,238			52		0.39
Commercial paper and other short-term borrowings ⁽²⁰⁾	3,826			2		0.21			2,991			1		0.20
Long-term debt	8,855			52		2.34			8,008			47		2.34
Total borrowed funds	12,681			54		1.69			10,999			48		1.76
Total interest bearing liabilities	64,790			104		0.64			65,237			100		0.62
Noninterest bearing deposits	30,038								29,850
Other liabilities ⁽²¹⁾	2,626								2,750
Total liabilities	97,454								97,837
Equity
MUAH stockholder's equity	15,238								15,069
Noncontrolling interests	215								228
Total equity	15,453								15,297
Total liabilities and equity	$	112,907							$	113,134

Net interest income/spread (taxable-equivalent basis)				725		2.61		%				688		2.47	%
Impact of noninterest bearing deposits						0.20								0.19
Impact of other noninterest bearing sources						0.03								0.04
Net interest margin						2.84								2.70
Less: taxable-equivalent adjustment				6								5
Net interest income				$	719							$	683

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	June 30, 2015								June 30, 2014
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾			Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾
Assets
Loans held for investment: ⁽¹⁸⁾
Commercial and industrial	$	28,107		$	238	3.40		%	$	24,421		$	202	3.33	%
Commercial mortgage	13,859			116		3.33			13,529			124		3.66
Construction	2,045			15		2.94			1,146			10		3.24
Lease financing	772			10		5.40			840			14		6.74
Residential mortgage	28,399			239		3.37			27,063			247		3.66
Home equity and other consumer loans	3,096			33		4.30			3,191			32		4.04
Loans, before purchased credit-impaired loans	76,278			651		3.42			70,190			629		3.59
Purchased credit-impaired loans	473			50		41.89			914			120		52.45
Total loans held for investment	76,751			701		3.66			71,104			749		4.22
Securities	22,915			126		2.20			22,865			120		2.10
Interest bearing deposits in banks	2,275			1		0.26			2,878			2		0.25
Federal funds sold and securities purchased under resale agreements	69			—		(0.47	)		102			—		0.02
Trading account assets	196			1		0.71			194			1		1.04
Other earning assets	83			—		4.00			262			—		0.83
Total earning assets	102,289			829		3.25			97,405			872		3.58
Allowance for loan losses	(535		)						(561		)
Cash and due from banks	1,619								1,450
Premises and equipment, net	615								642
Other assets ⁽¹⁹⁾	8,919								8,935
Total assets	$	112,907							$	107,871
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,986		29		0.31			$	37,646		35		0.38
Savings	5,588			1		0.06			5,590			1		0.09
Time	8,535			20		0.95			10,761			25		0.91
Total interest bearing deposits	52,109			50		0.39			53,997			61		0.45
Commercial paper and other short-term borrowings ⁽²⁰⁾	3,826			2		0.21			2,521			2		0.20
Long-term debt	8,855			52		2.34			6,923			41		2.39
Total borrowed funds	12,681			54		1.69			9,444			43		1.80
Total interest bearing liabilities	64,790			104		0.64			63,441			104		0.65
Noninterest bearing deposits	30,038								27,224
Other liabilities ⁽²¹⁾	2,626								2,298
Total liabilities	97,454								92,963
Equity
MUAH stockholder's equity	15,238								14,657
Noncontrolling interests	215								251
Total equity	15,453								14,908
Total liabilities and equity	$	112,907							$	107,871

Net interest income/spread (taxable-equivalent basis)				725		2.61		%				768		2.93	%
Impact of noninterest bearing deposits						0.20								0.19
Impact of other noninterest bearing sources						0.03								0.03
Net interest margin						2.84								3.15
Less: taxable-equivalent adjustment				6								5
Net interest income				$	719							$	763

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Six Months Ended
	June 30, 2015								June 30, 2014
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾			Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾
Assets
Loans held for investment: ⁽¹⁸⁾
Commercial and industrial	$	28,250		$	461	3.29		%	$	24,196		$	400	3.34	%
Commercial mortgage	13,881			231		3.32			13,380			243		3.63
Construction	1,949			29		2.98			1,047			18		3.43
Lease financing	774			20		5.25			845			25		6.07
Residential mortgage	28,581			486		3.40			26,529			485		3.66
Home equity and other consumer loans	3,099			65		4.26			3,212			64		4.01
Loans, before purchased credit-impaired loans	76,534			1,292		3.39			69,209			1,235		3.58
Purchased credit-impaired loans	492			88		36.01			994			181		36.49
Total loans held for investment	77,026			1,380		3.60			70,203			1,416		4.05
Securities	22,546			232		2.06			22,739			240		2.11
Interest bearing deposits in banks	2,524			3		0.26			3,219			4		0.25
Federal funds sold and securities purchased under resale agreements	83			—		(0.32	)		116			—		0.11
Trading account assets	196			1		0.71			231			3		2.21
Other earning assets	68			1		3.97			248			1		1.10
Total earning assets	102,443			1,617		3.17			96,756			1,664		3.45
Allowance for loan losses	(539		)						(569		)
Cash and due from banks	1,625								1,475
Premises and equipment, net	618								643
Other assets ⁽¹⁹⁾	8,873								8,880
Total assets	$	113,020							$	107,185
Liabilities
Interest bearing deposits:
Transaction and money market accounts	38,845			59		0.31			37,583			71		0.38
Savings	5,569			2		0.06			5,581			2		0.10
Time	8,754			41		0.94			10,986			50		0.92
Total interest bearing deposits	53,168			102		0.39			54,150			123		0.46
Commercial paper and other short-term borrowings ⁽²⁰⁾	3,411			3		0.21			2,576			3		0.21
Long-term debt	8,434			99		2.34			6,736			82		2.43
Total borrowed funds	11,845			102		1.72			9,312			85		1.82
Total interest bearing liabilities	65,013			204		0.63			63,462			208		0.66
Noninterest bearing deposits	29,944								26,679
Other liabilities ⁽²¹⁾	2,687								2,268
Total liabilities	97,644								92,409
Equity
MUAH stockholder's equity	15,154								14,524
Noncontrolling interests	222								252
Total equity	15,376								14,776
Total liabilities and equity	$	113,020							$	107,185

Net interest income/spread (taxable-equivalent basis)				1,413		2.54		%				1,456		2.79	%
Impact of noninterest bearing deposits						0.20								0.19
Impact of other noninterest bearing sources						0.03								0.04
Net interest margin						2.77								3.02
Less: taxable-equivalent adjustment				11								10
Net interest income				$	1,402							$	1,446

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 9

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



(Dollars in millions)					June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	27,854	$	27,979	$	27,623	$	26,429	$	25,162
		Commercial mortgage			13,800		13,923		14,016		13,766		13,549
		Construction			2,071		1,996		1,746		1,436		1,248
		Lease financing			759		776		800		811		829
			Total commercial portfolio		44,484		44,674		44,185		42,442		40,788

		Residential mortgage			28,374		28,558		28,977		28,425		27,619
		Home equity and other consumer loans			3,098		3,081		3,117		3,141		3,178
			Total consumer portfolio		31,472		31,639		32,094		31,566		30,797
				Loans held for investment, before purchased credit-impaired loans	75,956		76,313		76,279		74,008		71,585
		Purchased credit-impaired loans			443		495		525		627		784

				Total loans held for investment	$	76,399	$	76,808	$	76,804	$	74,635	$	72,369

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	64	$	52	$	55	$	71	$	161
		Commercial mortgage			43		40		40		34		47
			Total commercial portfolio		107		92		95		105		208

		Residential mortgage			209		221		231		239		243
		Home equity and other consumer loans			36		39		40		46		46
			Total consumer portfolio		245		260		271		285		289

				Nonaccrual loans, before purchased credit-impaired loans	352		352		366		390		497
		Purchased credit-impaired loans			10		9		9		13		17
				Total nonaccrual loans	362		361		375		403		514

	OREO				19		29		36		25		33

				Total nonperforming assets	$	381	$	390	$	411	$	428	$	547

	Loans 90 days or more past due and still accruing ⁽²²⁾				$	2	$	4	$	3	$	4	$	11

__________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 10

MUFG Americas Holdings Corporation and Subsidiaries

Allowance for Credit Losses (Unaudited)



	As of and for the Three Months Ended
(Dollars in millions)	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	530		$	537		$	529		$	559		$	557
(Reversal of) provision for loan losses	26			(3		)	9			(18		)	9
Other	—			(1		)	(2		)	—			—
Loans charged-off:
Commercial and industrial	(12		)	(1		)	(8		)	(15		)	(6		)
Commercial mortgage	(1		)	(3		)	(1		)	—			(2		)
Total commercial portfolio	(13		)	(4		)	(9		)	(15		)	(8		)
Residential mortgage	—			(1		)	—			—			(2		)
Home equity and other consumer loans	(3		)	(2		)	(2		)	(2		)	(2		)
Total consumer portfolio	(3		)	(3		)	(2		)	(2		)	(4		)
Purchased credit-impaired loans	(8		)	—			—			(1		)	—
Total loans charged-off	(24		)	(7		)	(11		)	(18		)	(12		)
Recoveries of loans previously charged-off:
Commercial and industrial	3			4			10			3			3
Commercial mortgage	—			—			—			2			1
Total commercial portfolio	3			4			10			5			4
Home equity and other consumer loans	1			—			2			—			1
Total consumer portfolio	1			—			2			—			1
Purchased credit-impaired loans	—			—			—			1			—
Total recoveries of loans previously charged-off	4			4			12			6			5
Net loans recovered (charged-off)	(20		)	(3		)	1			(12		)	(7		)

Ending balance of allowance for loan losses	536			530			537			529			559
Allowance for losses on unfunded credit commitments	147			158			152			162			145
Total allowance for credit losses	$	683		$	688		$	689		$	691		$	704



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			June 30, 2015				March 31, 2015				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		March 31, 2015			March 31, 2015
Asset Liability Management securities:
U.S. Treasury			$	403	$	403	$	147	$	149	$	254		170	%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		7,661		7,582		7,249		7,228		354			5
	Privately issued		144		145		155		156		(11		)	(7	)
Privately issued - commercial mortgage-backed securities			1,631		1,626		1,573		1,604		22			1
Collateralized loan obligations			2,832		2,823		2,503		2,487		336			14
Asset-backed and other			8		9		8		9		—			—
		Asset Liability Management securities	12,679		12,588		11,635		11,633		955			8
Other debt securities:
Direct bank purchase bonds			1,625		1,640		1,626		1,647		(7		)	—
Other			50		50		50		49		1			2
Equity securities			5		7		8		9		(2		)	(22	)
		Total securities available for sale	$	14,359	$	14,285	$	13,319	$	13,338	$	947		7	%

Securities Held to Maturity

			June 30, 2015				March 31, 2015				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²³⁾		Value		Amount ⁽²³⁾		Value		March 31, 2015			March 31, 2015
U.S. Treasury			$	487	$	494	$	487	$	497	$	(3	)	(1	)%
U.S. government-sponsored agencies			842		837		497		498		339			68
U.S. government agency and government-
	sponsored agencies - residential mortgage-backed securities		6,975		7,025		6,421		6,545		480			7
U.S. government agency and government-
	sponsored agencies - commercial mortgage-backed securities		1,698		1,747		1,720		1,793		(46		)	(3	)
		Total securities held to maturity	$	10,002	$	10,103	$	9,125	$	9,333	$	770		8	%

___________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 12

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

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
(Dollars in millions)		June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾			June 30, 2014 ⁽¹⁾
Net income attributable to MUAH		$	181		$	137		$	153		$	247		$	244
Net adjustments for merger costs related to acquisitions, net of tax		3			6			12			13			15
Net adjustments for privatization transaction, net of tax		3			3			6			(8		)	(9		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	187		$	146		$	171		$	252		$	250

Average total assets		$	112,907		$	113,134		$	112,589		$	109,739		$	107,871
Less: Net adjustments related to privatization transaction		2,230			2,235			2,244			2,255			2,260
Average total assets, excluding impact of privatization transaction		$	110,677		$	110,899		$	110,345		$	107,484		$	105,611
Return on average assets ⁽⁴⁾		0.64		%	0.49		%	0.54		%	0.90		%	0.91		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(4) (5)}	0.67			0.53			0.62			0.94			0.95

Average MUAH stockholder's equity		$	15,238		$	15,069		$	15,202		$	14,969		$	14,657
Less: Adjustments for merger costs related to acquisitions		(171		)	(167		)	(157		)	(147		)	(132		)
Less: Net adjustments for privatization transaction		2,275			2,276			2,279			2,290			2,297
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,134		$	12,960		$	13,080		$	12,826		$	12,492
Return on average MUAH stockholder's equity ⁽⁴⁾		4.73		%	3.65		%	4.02		%	6.60		%	6.66		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(4) (5)}	5.69			4.51			5.23			7.87			8.02

Noninterest expense		$	843		$	849		$	797		$	764		$	635
Less: Staff costs associated with fees from affiliates - support services		123			112			105			88			—
Less: Foreclosed asset expense and other credit costs		—			1			(2		)	(1		)	1
Less: Productivity initiative costs		2			28			2			6			4
Less: Low income housing credit (LIHC) investment amortization expense		2			2			4			3			3
Less: Expenses of the LIHC consolidated VIEs		10			9			8			8			8
Less: Merger and business integration costs		6			9			20			22			25
Less: Net adjustments related to privatization transaction		7			8			10			11			10
Less: Intangible asset amortization		3			3			3			3			3
Less: Contract termination fee		23			—			—			—			—
	Noninterest expense, as adjusted (a)	$	667		$	677		$	647		$	624		$	581

Total revenue		$	1,104		$	1,018		$	1,061		$	1,095		$	965
Add: Net interest income taxable-equivalent adjustment		6			5			5			6			5
Less: Fees from affiliates - support services		134			121			112			94			—
Less: Productivity initiative gains		(1		)	1			(1		)	—			—
Less: Accretion related to privatization-related fair value adjustments		2			1			(1		)	4			9
Less: Other credit costs		8			(4		)	(6		)	17			(2		)
	Total revenue, as adjusted (b)	$	967		$	904		$	962		$	986		$	963
Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		69.02		%	74.90		%	67.24		%	63.42		%	60.30		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 13

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		As of and for the Three Months Ended
(Dollars in millions)		June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾			June 30, 2014 ⁽¹⁾
Total MUAH stockholder's equity		$	15,278		$	15,200		$	14,922		$	14,990		$	14,753
Less: Goodwill		3,225			3,225			3,225			3,227			3,227
Less: Intangible assets, except mortgage servicing rights (MSRs)		214			222			233			249			262
Less: Deferred tax liabilities related to goodwill and intangible assets		(41		)	(40		)	(99		)	(20		)	(99		)
	Tangible common equity (c)	$	11,880		$	11,793		$	11,563		$	11,534		$	11,363
Total assets		$	114,266		$	113,698		$	113,623		$	110,867		$	108,809
Less: Goodwill		3,225			3,225			3,225			3,227			3,227
Less: Intangible assets, except MSRs		214			222			233			249			262
Less: Deferred tax liabilities related to goodwill and intangible assets		(41		)	(40		)	(99		)	(20		)	(99		)
	Tangible assets (d)	$	110,868		$	110,291		$	110,264		$	107,411		$	105,419
Tangible common equity ratio (c)/(d) ⁽¹¹⁾		10.72		%	10.69		%	10.49		%	10.74		%	10.78		%

Tier 1 capital, determined in accordance with U.S. Basel I regulatory requirements		n/a			n/a			$	12,367		n/a			n/a
Less: Junior subordinated debt payable to trusts		n/a			n/a			51			n/a			n/a
	U.S. Basel I Tier 1 common capital (e)	n/a			n/a			$	12,316		n/a			n/a
Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (f)		$	12,632		$	12,480		$	12,450		$	12,300		$	11,964
Other ⁽¹⁰⁾		(74		)	(80		)	(117		)	(121		)	(130		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (g)	$	12,558		$	12,400		$	12,333		$	12,179		$	11,834
Risk-weighted assets, determined in accordance with U.S. Basel I regulatory requirements (h)		n/a			n/a			$	96,663		n/a			n/a
Add: Adjustments		n/a			n/a			205			n/a			n/a
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (i)		$	93,181		$	98,723		96,868			$	96,239		$	94,556
Add: Adjustments		(67		)	(74		)	1,301			1,441			2,963
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased in) (j)	$	93,114		$	98,649		$	98,169		$	97,680		$	97,519
Tier 1 common capital ratio (e)/(h) ^{(9) (10) (12)}		n/a			n/a			12.74		%	n/a			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) (f)/(i) ^{(9) (13)}		n/a			n/a			12.85			n/a			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) (g)/(j) ^{(9) (14)}		13.49		%	12.57		%	12.56			12.47		%	12.13		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 14

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		As of and for the Six Months Ended
		June 30,			June 30,
(Dollars in millions)		2015			2014 ⁽¹⁾

Net income attributable to MUAH		$	318		$	416
Net adjustments for merger costs related to acquisitions, net of tax		9			26
Net adjustments for privatization transaction, net of tax		6			(8		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	333		$	434

Average total assets		$	113,020		$	107,185
Less: Net adjustments related to privatization transaction		2,233			2,266
Average total assets, excluding impact of privatization transaction		$	110,787		$	104,919
Return on average assets ⁽⁴⁾		0.56		%	0.78		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions ^{(4) (5)}	0.60			0.83

Average MUAH stockholder's equity		$	15,154		$	14,524
Less: Adjustments for merger costs related to acquisitions		(169		)	(125		)
Less: Net adjustments for privatization transaction		2,275			2,299
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,048		$	12,350
Return on average MUAH stockholder's equity ⁽⁴⁾		4.19		%	5.73		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions ^{(4) (5)}	5.10			7.03

Noninterest expense		$	1,692		$	1,262
Less: Staff costs associated with fees from affiliates - support services		235			—
Less: Foreclosed asset expense and other credit costs		1			—
Less: Productivity initiative costs		30			5
Less: Low income housing credit (LIHC) investment amortization expense		4			6
Less: Expenses of the LIHC consolidated VIEs		18			16
Less: Merger and business integration costs		15			42
Less: Net adjustments related to privatization transaction		15			20
Less: Intangible asset amortization		7			7
Less: Contract termination fee		23			—
	Noninterest expense, as adjusted (a)	$	1,344		$	1,166

Total revenue		$	2,122		$	1,829
Add: Net interest income taxable-equivalent adjustment		11			10
Less: Fees from affiliates - support services		255			—
Less: Productivity initiative gains		—			—
Less: Accretion related to privatization-related fair value adjustments		3			16
Less: Other credit costs		4			1
	Total revenue, as adjusted (b)	$	1,871		$	1,822
Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		71.86		%	63.91		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 15

MUFG Americas Holdings Corporation and Subsidiaries

Footnotes


(1)	Prior period amounts have been revised to reflect the January 1, 2015 adoption of Accounting Standards Update 2014-01 related to investments in qualified affordable housing projects.


(2)	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 credit losses through a credit cycle.


(3)	Core deposits exclude brokered deposits, foreign time deposits and domestic time deposits greater than $250,000.


(4)	Annualized.


(5)	These ratios exclude the impact of the privatization transaction and merger costs related to acquisitions. Management believes that these ratios provide useful supplemental information regarding the Company's business results. Please refer to Exhibits 13 and 15 for reconciliations between certain GAAP amounts and these non-GAAP measures.


(6)	The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income).

(7)

The adjusted efficiency ratio, a non-GAAP financial measure, is adjusted noninterest expense (noninterest expense excluding staff costs associated with fees from affiliates - support services, foreclosed asset expense and other credit costs, certain costs related to productivity initiatives, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger and business integration costs, privatization-related expenses, intangible asset amortization, and a contract termination fee) as a percentage of adjusted total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding the impact of fees from affiliates - support services, productivity initiatives related to the sale of certain premises, accretion related to privatization-related fair value adjustments, and other credit costs. Management discloses the adjusted efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our business activities. Please refer to Exhibits 13 and 15 for reconciliations between certain GAAP amounts and these non-GAAP measures.


(8)	Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rate of 35%.


(9)	Preliminary as of June 30, 2015.


(10)	The capital ratios as of December 31, 2014 are calculated under U.S. Basel I rules. The capital ratios displayed as of June 30, 2015, March 31, 2015, September 30, 2014, and June 30, 2014 are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' revised capital framework for implementing the final U.S. Basel III regulatory capital rules.

(11)

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 the Company's capital structure and is used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(12)

The Tier 1 common capital ratio, calculated under Basel I rules, is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, facilitates the understanding of the Company's capital structure and is used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(13)

In December 2014, the Federal Reserve Board approved the Company's request to opt-out of the advanced approaches methodology under U.S. Basel III regulatory capital rules. Common Equity Tier 1 risk-based capital is calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' revised capital framework for implementing the final U.S. Basel III regulatory capital rules. Management reviews this ratio, which excludes accumulated other comprehensive loss, along with other measures of capital, as part of its financial analyses. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(14)

Common Equity Tier 1 risk-based capital (standardized, fully phased-in basis) is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies as if the transition provisions of the U.S. Basel III rules were fully phased in for the periods in which the ratio is disclosed. Management reviews this ratio, which excludes accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information, and the corresponding reconciliation from Common Equity Tier 1 capital under U.S. Basel III (standardized transitional), because of current interest in such information by market participants. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.


(15)	Criticized loans held for investment reflects 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.


(16)	The allowance for credit losses ratios include the allowances for loan losses and for losses on unfunded credit commitments against end of period total loans held for investment or total nonaccrual loans, as appropriate.


(17)	Fees from affiliates represent income resulting from the business integration initiative effective July 1, 2014.


(18)	Average balances on loans held for investment 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.


(19)	Includes noninterest bearing trading assets.


(20)	Includes interest bearing trading liabilities.


(21)	Includes noninterest bearing trading liabilities.

(22)

Excludes loans totaling $36 million, $52 million, $65 million, $103 million, and $123 million that are 90 days or more past due and still accruing at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively, which consist of loans accounted for within loan pools in accordance with the accounting standards for purchased credit-impaired loans. The past due status of individual loans within the pools is not a meaningful indicator of credit quality, as potential credit losses are measured at the loan pool level.


(23)	Carrying amount reflects amortized cost except for balances transferred from available for sale to held to maturity securities. Those balances reflect amortized cost plus any unrealized gains or losses at the date of transfer.

nm = not meaningful

n/a = not applicable



	Exhibit 16

MUFG Americas Holdings Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 27, 2015

Attached files

MUFG Americas Holdings Corp Reports