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

Attached files

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8-K - 8-K - MUFG Americas Holdings Corp	muah8kq32015.htm
EX-99.1 - EXHIBIT 99.1 - MUFG Americas Holdings Corp	muah-earnings_ex991q32015.htm

MUFG Americas Holdings Corporation Exhibit 99.2

FINANCIAL SUPPLEMENT SEPTEMBER 30, 2015

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															September 30, 2015 from
(Dollars in millions)	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾			June 30, 2015		September 30, 2014
Results of operations:
Net interest income	$	705		$	719		$	683		$	709		$	707		(2	)%	—	%
Noninterest income	397			385			335			352			388			3		2
Total revenue	1,102			1,104			1,018			1,061			1,095			—		1
Noninterest expense	855			843			849			797			764			1		12
Pre-tax, pre-provision income ⁽²⁾	247			261			169			264			331			(5	)	(25	)
(Reversal of) provision for credit losses	18			15			3			(1		)	1			20		nm
Income before income taxes and including
noncontrolling interests	229			246			166			265			330			(7	)	(31	)
Income tax expense	64			71			34			117			88			(10	)	(27	)
Net income including noncontrolling interests	165			175			132			148			242			(6	)	(32	)
Deduct: Net loss from noncontrolling interests	21			6			5			5			5			250		320
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	186		$	181		$	137		$	153		$	247		3		(25	)

Balance sheet (end of period):
Total assets	$	115,157		$	114,266		$	113,698		$	113,623		$	110,867		1		4
Total securities	24,696			24,287			22,463			22,015			22,522			2		10
Total loans held for investment	76,641			76,399			76,808			76,804			74,635			—		3
Core deposits ⁽³⁾	74,785			73,080			74,190			76,666			73,608			2		2
Total deposits	82,693			81,702			82,741			86,004			82,356			1		—
Long-term debt	11,357			8,852			8,856			6,972			6,984			28		63
MUAH stockholder's equity	15,621			15,278			15,200			14,922			14,990			2		4

Balance sheet (period average):
Total assets	$	113,451		$	112,907		$	113,134		$	112,589		$	109,739		—		3
Total securities	24,141			22,915			22,172			22,171			22,592			5		7
Total loans held for investment	76,177			76,751			77,305			75,795			73,353			(1	)	4
Earning assets	102,899			102,289			102,645			101,430			98,933			1		4
Total deposits	82,488			82,147			84,088			84,036			82,239			—		—
MUAH stockholder's equity	15,435			15,238			15,069			15,202			14,969			1		3

Performance ratios:
Return on average assets ⁽⁴⁾	0.66		%	0.64		%	0.49		%	0.54		%	0.90		%
Return on average MUAH stockholder's equity ⁽⁴⁾	4.83			4.73			3.65			4.02			6.60
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(4) (5)}	0.70			0.67			0.53			0.62			0.94
Return on average MUAH stockholder's equity excluding the
impact of privatization transaction and merger costs related to
acquisitions ^{(4) (5)}	5.82			5.69			4.51			5.23			7.87
Efficiency ratio ⁽⁶⁾	77.62			76.42			83.35			75.07			69.86
Adjusted efficiency ratio ⁽⁷⁾	70.16			69.02			74.90			67.24			63.42
Net interest margin ^{(4) (8)}	2.76			2.84			2.70			2.81			2.87

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)}	13.84		%	13.56		%	12.64		%	n/a			12.66		%
Tier 1 risk-based capital ratio ^{(9) (10)}	13.84			13.56			12.64			12.79		%	12.70
Total risk-based capital ratio ^{(9) (10)}	15.60			15.30			14.41			14.74			14.60
Tier 1 leverage ratio ^{(9) (10)}	11.58			11.46			11.30			11.25			11.43

Other:
Tangible common equity ratio ⁽¹¹⁾	10.95		%	10.72		%	10.69		%	10.49		%	10.74		%
Tier 1 common capital ratio ^{(9) (10) (12)}	n/a			n/a			n/a			12.74			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) ^{(9) (13)}	n/a			n/a			n/a			12.85			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) ^{(9) (14)}	13.79			13.49			12.57			12.56			12.47

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 1

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



	As of and for the Nine Months Ended						Percent Change to
	September 30,			September 30,			September 30, 2015 from
(Dollars in millions)	2015			2014 ⁽¹⁾			September 30, 2014
Results of operations:
Net interest income	$	2,107		$	2,153			(2	)%
Noninterest income	1,117			771				45
Total revenue	3,224			2,924				10
Noninterest expense	2,547			2,026				26
Pre-tax, pre-provision income ⁽²⁾	677			898				(25	)
Provision for credit losses	36			7				414
Income before income taxes and including
noncontrolling interests	641			891				(28	)
Income tax expense	169			242				(30	)
Net income including noncontrolling interests	472			649				(27	)
Deduct: Net loss from noncontrolling interests	32			14				129
Net income attributable to MUAH	$	504		$	663			(24	)

Balance sheet (end of period):
Total assets	$	115,157		$	110,867			4
Total securities	24,696			22,522				10
Total loans held for investment	76,641			74,635				3
Core deposits ⁽³⁾	74,785			73,608				2
Total deposits	82,693			82,356				—
Long-term debt	11,357			6,984				63
MUAH stockholder's equity	15,621			14,990				4

Balance sheet (period average):
Total assets	$	113,165		$	108,039			5
Total securities	23,083			22,689				2
Total loans held for investment	76,740			71,264				8
Earning assets	102,596			97,486				5
Total deposits	82,901			81,298				2
MUAH stockholder's equity	15,248			14,675				4

Performance ratios:
Return on average assets ⁽⁴⁾	0.59		%	0.82		%
Return on average MUAH stockholder's equity ⁽⁴⁾	4.39			6.01
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}	0.63			0.86
Return on average MUAH stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}	5.33			7.30
Efficiency ratio ⁽⁶⁾	79.02			69.31
Adjusted efficiency ratio ⁽⁷⁾	71.28			63.74
Net interest margin ^{(4) (8)}	2.77			2.97

___________________________________________

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

Credit Data:
(Reversal of) provision for loan losses	$	23		$	26		$	(3	)	$	9		$	(18	)	(12	)%	228	%
(Reversal of) provision for losses on unfunded credit commitments	(5		)	(11		)	6			(10		)	19			55		(126	)
Total (reversal of) provision for credit losses	$	18		$	15		$	3		$	(1	)	$	1		20		nm

Net loans charged-off (recovered)	$	11		$	20		$	3		$	(1	)	$	12		(45	)	(8	)
Nonperforming assets	434			381			390			411			428			14		1
Criticized loans held for investment ⁽¹⁵⁾	1,642			1,395			1,327			1,141			1,245			18		32

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.71		%	0.70		%	0.69		%	0.70		%	0.71		%
Nonaccrual loans	130.46			147.98			147.21			143.35			131.28
Allowance for credit losses to ⁽¹⁶⁾:
Total loans held for investment	0.90			0.89			0.90			0.90			0.92
Nonaccrual loans	164.09			188.39			191.20			183.80			171.42
Net loans charged-off (recovered) to average total loans held for investment ⁽⁴⁾	0.06			0.10			0.01			—			0.06
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.57			0.50			0.51			0.53			0.57
Nonperforming assets to total assets	0.38			0.33			0.34			0.36			0.39
Nonaccrual loans to total loans held for investment	0.55			0.47			0.47			0.49			0.54


	As of and for the Nine Months Ended						Percent Change
	September 30,			September 30,			to September 30, 2015
(Dollars in millions)	2015			2014			from September 30, 2014
Credit Data:
(Reversal of) provision for loan losses	$	46		$	(25	)	284%
(Reversal of) provision for losses on unfunded credit commitments	(10		)	32			(131)
Total provision for credit losses	$	36		$	7		414

Net loans charged-off	$	34		$	13		162
Credit Ratios:
Net loans charged-off to average total loans held for investment	0.06		%	0.02		%

________________________________________

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)			September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014⁽¹⁾			September 30, 2014⁽¹⁾
Interest Income
	Loans		$	688	$	700	$	678	$	696		$	693
	Securities		116		121		102		109			113
	Other		5		2		3		3			2
		Total interest income	809		823		783		808			808

Interest Expense
	Deposits		48		50		52		57			58
	Commercial paper and other short-term borrowings		3		2		1		1			1
	Long-term debt		53		52		47		41			42
		Total interest expense	104		104		100		99			101

Net Interest Income			705		719		683		709			707
	(Reversal of) provision for credit losses		18		15		3		(1		)	1
		Net interest income after (reversal of) provision for credit losses	687		704		680		710			706

Noninterest Income
	Service charges on deposit accounts		49		49		49		50			52
	Trust and investment management fees		27		26		28		26			26
	Trading account activities		7		19		8		8			33
	Securities gains, net		6		5		3		2			13
	Credit facility fees		27		30		30		33			30
	Merchant banking fees		22		20		20		35			38
	Brokerage commissions and fees		13		14		13		13			14
	Card processing fees, net		8		9		8		9			8
	Fees from affiliates ⁽¹⁷⁾		185		192		166		168			151
	Other, net		53		21		10		8			23
		Total noninterest income	397		385		335		352			388

Noninterest Expense
	Salaries and employee benefits		557		555		567		527			492
	Net occupancy and equipment		79		75		80		76			74
	Professional and outside services		78		64		77		72			66
	Intangible asset amortization		10		10		10		13			13
	Regulatory assessments		11		14		13		13			13
	Other		120		125		102		96			106
		Total noninterest expense	855		843		849		797			764

	Income before income taxes and including
	noncontrolling interests		229		246		166		265			330
	Income tax expense		64		71		34		117			88
Net Income including Noncontrolling Interests			165		175		132		148			242
	Deduct: Net loss from noncontrolling interests		21		6		5		5			5
Net Income attributable to MUAH			$	186	$	181	$	137	$	153		$	247

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 4

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Nine Months Ended
(Dollars in millions)			September 30, 2015		September 30, 2014⁽¹⁾
Interest Income
	Loans		$	2,066	$	2,109
	Securities		339		343
	Other		10		10
		Total interest income	2,415		2,462

Interest Expense
	Deposits		150		181
	Commercial paper and other short-term borrowings		6		4
	Long-term debt		152		124
		Total interest expense	308		309

Net Interest Income			2,107		2,153
	Provision for credit losses		36		7
		Net interest income after provision for credit losses	2,071		2,146

Noninterest Income
	Service charges on deposit accounts		147		153
	Trust and investment management fees		81		78
	Trading account activities		34		63
	Securities gains, net		14		16
	Credit facility fees		87		89
	Merchant banking fees		62		89
	Brokerage commissions and fees		40		40
	Card processing fees, net		25		25
	Fees from affiliates ⁽¹⁷⁾		543		151
	Other, net		84		67
		Total noninterest income	1,117		771

Noninterest Expense
	Salaries and employee benefits		1,679		1,258
	Net occupancy and equipment		234		220
	Professional and outside services		219		184
	Intangible asset amortization		30		39
	Regulatory assessments		38		44
	Other		347		281
		Total noninterest expense	2,547		2,026

	Income before income taxes and including
	noncontrolling interests		641		891
	Income tax expense		169		242
Net Income including Noncontrolling Interests			472		649
	Deduct: Net loss from noncontrolling interests		32		14
Net Income attributable to MUAH			$	504	$	663

___________________________________________

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)				September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014⁽¹⁾			September 30, 2014⁽¹⁾
Assets
Cash and due from banks				$	1,596		$	1,815		$	1,735		$	1,759		$	1,593
Interest bearing deposits in banks				2,692			2,160			2,787			3,930			2,772
Federal funds sold and securities purchased under resale agreements				86			68			92			62			154
		Total cash and cash equivalents		4,374			4,043			4,614			5,751			4,519
Trading account assets				1,200			1,089			1,233			1,114			883
Securities available for sale				14,355			14,285			13,338			13,724			14,064
Securities held to maturity				10,341			10,002			9,125			8,291			8,458
Loans held for investment				76,641			76,399			76,808			76,804			74,635
	Allowance for loan losses			(547		)	(536		)	(530		)	(537		)	(529		)
		Loans held for investment, net		76,094			75,863			76,278			76,267			74,106
Premises and equipment, net				607			622			623			621			617
Goodwill				3,225			3,225			3,225			3,225			3,227
Other assets				4,961			5,137			5,262			4,630			4,993
			Total assets	$	115,157		$	114,266		$	113,698		$	113,623		$	110,867

Liabilities
Deposits:
	Noninterest bearing			$	31,869		$	30,156		$	29,854		$	30,534		$	28,676
	Interest bearing			50,824			51,546			52,887			55,470			53,680
		Total deposits		82,693			81,702			82,741			86,004			82,356
Commercial paper and other short-term borrowings				2,338			5,262			3,475			2,704			3,876
Long-term debt				11,357			8,852			8,856			6,972			6,984
Trading account liabilities				891			734			944			894			596
Other liabilities				2,060			2,232			2,266			1,897			1,826
			Total liabilities	99,339			98,782			98,282			98,471			95,638

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 September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014; and 136,330,830 as of September 30, 2014.		136			136			136			136			136
	Additional paid-in capital			7,224			7,208			7,241			7,232			7,223
	Retained earnings			8,786			8,600			8,420			8,283			8,130
	Accumulated other comprehensive loss			(525		)	(666		)	(597		)	(729		)	(499		)
			Total MUAH stockholder's equity	15,621			15,278			15,200			14,922			14,990
Noncontrolling interests				197			206			216			230			239
			Total equity	15,818			15,484			15,416			15,152			15,229
			Total liabilities and equity	$	115,157		$	114,266		$	113,698		$	113,623		$	110,867

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	September 30, 2015							June 30, 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	$	28,262		$	239	3.35	%	$	28,107		$	238	3.40		%
Commercial mortgage	13,745			116		3.38		13,859			116		3.33
Construction	2,103			16		3.07		2,045			15		2.94
Lease financing	755			11		5.45		772			10		5.40
Residential mortgage	27,783			237		3.42		28,399			239		3.37
Home equity and other consumer loans	3,117			35		4.43		3,096			33		4.30
Loans, before purchased credit-impaired loans	75,765			654		3.44		76,278			651		3.42
Purchased credit-impaired loans	412			36		34.49		473			50		41.89
Total loans held for investment	76,177			690		3.61		76,751			701		3.66
Securities	24,141			121		2.00		22,915			126		2.20
Interest bearing deposits in banks	1,963			1		0.25		2,275			1		0.26
Federal funds sold and securities purchased under resale agreements	63			—		0.01		69			—		(0.47	)
Trading account assets	173			—		0.69		196			1		0.71
Other earning assets	382			4		4.08		83			—		4.00
Total earning assets	102,899			816		3.16		102,289			829		3.25
Allowance for loan losses	(539		)					(535		)
Cash and due from banks	1,588							1,619
Premises and equipment, net	611							615
Other assets ⁽¹⁹⁾	8,892							8,919
Total assets	$	113,451						$	112,907
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,537		28		0.29		$	37,986		29		0.31
Savings	5,687			—		0.06		5,588			1		0.06
Time	8,058			20		1.01		8,535			20		0.95
Total interest bearing deposits	51,282			48		0.38		52,109			50		0.39
Commercial paper and other short-term borrowings ⁽²⁰⁾	3,630			3		0.22		3,826			2		0.21
Long-term debt	9,319			53		2.29		8,855			52		2.34
Total borrowed funds	12,949			56		1.71		12,681			54		1.69
Total interest bearing liabilities	64,231			104		0.65		64,790			104		0.64
Noninterest bearing deposits	31,206							30,038
Other liabilities ⁽²¹⁾	2,375							2,626
Total liabilities	97,812							97,454
Equity
MUAH stockholder's equity	15,435							15,238
Noncontrolling interests	204							215
Total equity	15,639							15,453
Total liabilities and equity	$	113,451						$	112,907

Net interest income/spread (taxable-equivalent basis)				712		2.51	%				725		2.61		%
Impact of noninterest bearing deposits						0.22							0.20
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.76							2.84
Less: taxable-equivalent adjustment				7							6
Net interest income				$	705						$	719

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	September 30, 2015							September 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	$	28,262		$	239	3.35	%	$	25,746		$	220	3.39	%
Commercial mortgage	13,745			116		3.38		13,643			122		3.57
Construction	2,103			16		3.07		1,336			10		3.12
Lease financing	755			11		5.45		811			12		5.69
Residential mortgage	27,783			237		3.42		27,967			250		3.58
Home equity and other consumer loans	3,117			35		4.43		3,164			32		4.08
Loans, before purchased credit-impaired loans	75,765			654		3.44		72,667			646		3.54
Purchased credit-impaired loans	412			36		34.49		686			48		27.70
Total loans held for investment	76,177			690		3.61		73,353			694		3.77
Securities	24,141			121		2.00		22,592			117		2.08
Interest bearing deposits in banks	1,963			1		0.25		2,380			2		0.26
Federal funds sold and securities purchased under resale agreements	63			—		0.01		106			—		—
Trading account assets	173			—		0.69		164			—		0.66
Other earning assets	382			4		4.08		338			1		0.73
Total earning assets	102,899			816		3.16		98,933			814		3.28
Allowance for loan losses	(539		)					(566		)
Cash and due from banks	1,588							1,597
Premises and equipment, net	611							626
Other assets ⁽¹⁹⁾	8,892							9,149
Total assets	$	113,451						$	109,739
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,537		28		0.29		$	39,128		33		0.34
Savings	5,687			—		0.06		5,574			2		0.08
Time	8,058			20		1.01		9,766			23		0.96
Total interest bearing deposits	51,282			48		0.38		54,468			58		0.42
Commercial paper and other short-term borrowings ⁽²⁰⁾	3,630			3		0.22		2,820			1		0.17
Long-term debt	9,319			53		2.29		6,994			42		2.38
Total borrowed funds	12,949			56		1.71		9,814			43		1.75
Total interest bearing liabilities	64,231			104		0.65		64,282			101		0.63
Noninterest bearing deposits	31,206							27,771
Other liabilities ⁽²¹⁾	2,375							2,474
Total liabilities	97,812							94,527
Equity
MUAH stockholder's equity	15,435							14,969
Noncontrolling interests	204							243
Total equity	15,639							15,212
Total liabilities and equity	$	113,451						$	109,739

Net interest income/spread (taxable-equivalent basis)				712		2.51	%				713		2.65	%
Impact of noninterest bearing deposits						0.22							0.19
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.76							2.87
Less: taxable-equivalent adjustment				7							6
Net interest income				$	705						$	707

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Nine Months Ended
	September 30, 2015								September 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	$	28,254		$	700	3.31		%	$	24,708		$	620	3.36	%
Commercial mortgage	13,835			347		3.34			13,469			365		3.61
Construction	2,001			45		3.02			1,154			28		3.30
Lease financing	767			31		5.32			833			37		5.95
Residential mortgage	28,312			723		3.41			27,014			735		3.63
Home equity and other consumer loans	3,106			100		4.32			3,196			96		4.04
Loans, before purchased credit-impaired loans	76,275			1,946		3.41			70,374			1,881		3.57
Purchased credit-impaired loans	465			124		35.55			890			229		34.27
Total loans held for investment	76,740			2,070		3.60			71,264			2,110		3.95
Securities	23,083			353		2.04			22,689			357		2.10
Interest bearing deposits in banks	2,335			4		0.25			2,934			6		0.25
Federal funds sold and securities purchased under resale agreements	76			—		(0.23	)		113			—		0.06
Trading account assets	188			1		0.70			208			3		1.80
Other earning assets	174			5		4.02			278			2		0.95
Total earning assets	102,596			2,433		3.17			97,486			2,478		3.39
Allowance for loan losses	(539		)						(568		)
Cash and due from banks	1,612								1,512
Premises and equipment, net	616								638
Other assets ⁽¹⁹⁾	8,880								8,971
Total assets	$	113,165							$	108,039
Liabilities
Interest bearing deposits:
Transaction and money market accounts	38,404			87		0.30			38,097			104		0.37
Savings	5,609			2		0.06			5,579			4		0.09
Time	8,519			61		0.96			10,575			73		0.93
Total interest bearing deposits	52,532			150		0.38			54,251			181		0.45
Commercial paper and other short-term borrowings ⁽²⁰⁾	3,485			6		0.21			2,658			4		0.19
Long-term debt	8,732			152		2.32			6,822			124		2.42
Total borrowed funds	12,217			158		1.72			9,480			128		1.79
Total interest bearing liabilities	64,749			308		0.64			63,731			309		0.65
Noninterest bearing deposits	30,369								27,047
Other liabilities ⁽²¹⁾	2,583								2,337
Total liabilities	97,701								93,115
Equity
MUAH stockholder's equity	15,248								14,675
Noncontrolling interests	216								249
Total equity	15,464								14,924
Total liabilities and equity	$	113,165							$	108,039

Net interest income/spread (taxable-equivalent basis)				2,125		2.53		%				2,169		2.74	%
Impact of noninterest bearing deposits						0.21								0.19
Impact of other noninterest bearing sources						0.03								0.04
Net interest margin						2.77								2.97
Less: taxable-equivalent adjustment				18								16
Net interest income				$	2,107							$	2,153

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 9

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



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

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	28,462	$	27,854	$	27,979	$	27,623	$	26,429
		Commercial mortgage			13,943		13,800		13,923		14,016		13,766
		Construction			2,120		2,071		1,996		1,746		1,436
		Lease financing			748		759		776		800		811
			Total commercial portfolio		45,273		44,484		44,674		44,185		42,442

		Residential mortgage			27,856		28,374		28,558		28,977		28,425
		Home equity and other consumer loans			3,124		3,098		3,081		3,117		3,141
			Total consumer portfolio		30,980		31,472		31,639		32,094		31,566
				Loans held for investment, before purchased credit-impaired loans	76,253		75,956		76,313		76,279		74,008
		Purchased credit-impaired loans			388		443		495		525		627

				Total loans held for investment	$	76,641	$	76,399	$	76,808	$	76,804	$	74,635

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	138	$	64	$	52	$	55	$	71
		Commercial mortgage			40		43		40		40		34
			Total commercial portfolio		178		107		92		95		105

		Residential mortgage			201		209		221		231		239
		Home equity and other consumer loans			32		36		39		40		46
			Total consumer portfolio		233		245		260		271		285

				Nonaccrual loans, before purchased credit-impaired loans	411		352		352		366		390
		Purchased credit-impaired loans			8		10		9		9		13
				Total nonaccrual loans	419		362		361		375		403

	OREO				15		19		29		36		25

				Total nonperforming assets	$	434	$	381	$	390	$	411	$	428

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

__________________________________________

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)	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014

Analysis of Allowance for Credit Losses
Allowance for loan losses, beginning of period	$	536		$	530		$	537		$	529		$	559
(Reversal of) provision for loan losses	23			26			(3		)	9			(18		)
Other	(1		)	—			(1		)	(2		)	—
Loans charged-off:
Commercial and industrial	(11		)	(12		)	(1		)	(8		)	(15		)
Commercial mortgage	—			(1		)	(3		)	(1		)	—
Total commercial portfolio	(11		)	(13		)	(4		)	(9		)	(15		)
Residential mortgage	—			—			(1		)	—			—
Home equity and other consumer loans	(1		)	(3		)	(2		)	(2		)	(2		)
Total consumer portfolio	(1		)	(3		)	(3		)	(2		)	(2		)
Purchased credit-impaired loans	(3		)	(8		)	—			—			(1		)
Total loans charged-off	(15		)	(24		)	(7		)	(11		)	(18		)
Recoveries of loans previously charged-off:
Commercial and industrial	2			3			4			10			3
Commercial mortgage	1			—			—			—			2
Total commercial portfolio	3			3			4			10			5
Home equity and other consumer loans	1			1			—			2			—
Total consumer portfolio	1			1			—			2			—
Purchased credit-impaired loans	—			—			—			—			1
Total recoveries of loans previously charged-off	4			4			4			12			6
Net loans recovered (charged-off)	(11		)	(20		)	(3		)	1			(12		)

Ending balance of allowance for loan losses	547			536			530			537			529
Allowance for losses on unfunded credit commitments	141			147			158			152			162
Total allowance for credit losses	$	688		$	683		$	688		$	689		$	691



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			September 30, 2015				June 30, 2015				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		June 30, 2015			June 30, 2015
Asset Liability Management securities:
U.S. Treasury			$	—	$	—	$	403	$	403	$	(403	)	(100	)%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		7,879		7,860		7,661		7,582		278			4
	Privately issued		131		132		144		145		(13		)	(9	)
Privately issued - commercial mortgage-backed securities			1,586		1,595		1,631		1,626		(31		)	(2	)
Collateralized loan obligations			3,132		3,109		2,832		2,823		286			10
Asset-backed and other			7		8		8		9		(1		)	(11	)
		Asset Liability Management securities	12,735		12,704		12,679		12,588		116			1
Other debt securities:
Direct bank purchase bonds			1,567		1,594		1,625		1,640		(46		)	(3	)
Other			48		49		50		50		(1		)	(2	)
Equity securities			6		8		5		7		1			14
		Total securities available for sale	$	14,356	$	14,355	$	14,359	$	14,285	$	70		—	%

Securities Held to Maturity

			September 30, 2015				June 30, 2015				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²³⁾		Value		Amount ⁽²³⁾		Value		June 30, 2015			June 30, 2015
U.S. Treasury			$	488	$	499	$	487	$	494	$	1		—	%
U.S. government-sponsored agencies			900		901		842		837		58			7
U.S. government agency and government-
	sponsored agencies - residential mortgage-backed securities		7,270		7,375		6,975		7,025		295			4
U.S. government agency and government-
	sponsored agencies - commercial mortgage-backed securities		1,683		1,753		1,698		1,747		(15		)	(1	)
		Total securities held to maturity	$	10,341	$	10,528	$	10,002	$	10,103	$	339		3	%

___________________________________________

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)		September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾
Net income attributable to MUAH		$	186		$	181		$	137		$	153		$	247
Net adjustments for merger costs related to acquisitions, net of tax		5			3			6			12			13
Net adjustments for privatization transaction, net of tax		3			3			3			6			(8		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	194		$	187		$	146		$	171		$	252

Average total assets		$	113,451		$	112,907		$	113,134		$	112,589		$	109,739
Less: Net adjustments related to privatization transaction		2,224			2,230			2,235			2,244			2,255
Average total assets, excluding impact of privatization transaction		$	111,227		$	110,677		$	110,899		$	110,345		$	107,484
Return on average assets ⁽⁴⁾		0.66		%	0.64		%	0.49		%	0.54		%	0.90		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(4) (5)}	0.70			0.67			0.53			0.62			0.94

Average MUAH stockholder's equity		$	15,435		$	15,238		$	15,069		$	15,202		$	14,969
Less: Adjustments for merger costs related to acquisitions		(175		)	(171		)	(167		)	(157		)	(147		)
Less: Net adjustments for privatization transaction		2,273			2,275			2,276			2,279			2,290
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,337		$	13,134		$	12,960		$	13,080		$	12,826
Return on average MUAH stockholder's equity ⁽⁴⁾		4.83		%	4.73		%	3.65		%	4.02		%	6.60		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(4) (5)}	5.82			5.69			4.51			5.23			7.87

Noninterest expense		$	855		$	843		$	849		$	797		$	764
Less: Staff costs associated with fees from affiliates - support services		128			123			112			105			88
Less: Foreclosed asset expense and other credit costs		3			—			1			(2		)	(1		)
Less: Productivity initiative costs		3			2			28			2			6
Less: Low income housing credit (LIHC) investment amortization expense		5			2			2			4			3
Less: Expenses of the LIHC consolidated VIEs		14			10			9			8			8
Less: Merger and business integration costs		8			6			9			20			22
Less: Net adjustments related to privatization transaction		8			7			8			10			11
Less: Intangible asset amortization		2			3			3			3			3
Less: Contract termination fee		—			23			—			—			—
	Noninterest expense, as adjusted (a)	$	684		$	667		$	677		$	647		$	624

Total revenue		$	1,102		$	1,104		$	1,018		$	1,061		$	1,095
Add: Net interest income taxable-equivalent adjustment		7			6			5			5			6
Less: Fees from affiliates - support services		138			134			121			112			94
Less: Productivity initiative gains		—			(1		)	1			(1		)	—
Less: Accretion related to privatization-related fair value adjustments		3			2			1			(1		)	4
Less: Other credit costs		(8		)	8			(4		)	(6		)	17
	Total revenue, as adjusted (b)	$	976		$	967		$	904		$	962		$	986
Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		70.16		%	69.02		%	74.90		%	67.24		%	63.42		%

____________________________________________

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)		September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2014 ⁽¹⁾
Total MUAH stockholder's equity		$	15,621		$	15,278		$	15,200		$	14,922		$	14,990
Less: Goodwill		3,225			3,225			3,225			3,225			3,227
Less: Intangible assets, except mortgage servicing rights (MSRs)		199			214			222			233			249
Less: Deferred tax liabilities related to goodwill and intangible assets		(39		)	(41		)	(40		)	(99		)	(20		)
	Tangible common equity (c)	$	12,236		$	11,880		$	11,793		$	11,563		$	11,534
Total assets		$	115,157		$	114,266		$	113,698		$	113,623		$	110,867
Less: Goodwill		3,225			3,225			3,225			3,225			3,227
Less: Intangible assets, except MSRs		199			214			222			233			249
Less: Deferred tax liabilities related to goodwill and intangible assets		(39		)	(41		)	(40		)	(99		)	(20		)
	Tangible assets (d)	$	111,772		$	110,868		$	110,291		$	110,264		$	107,411
Tangible common equity ratio (c)/(d) ⁽¹¹⁾		10.95		%	10.72		%	10.69		%	10.49		%	10.74		%

Tier 1 capital, determined in accordance with U.S. Basel I regulatory requirements		n/a			n/a			n/a			$	12,367		n/a
Less: Junior subordinated debt payable to trusts		n/a			n/a			n/a			51			n/a
	U.S. Basel I Tier 1 common capital (e)	n/a			n/a			n/a			$	12,316		n/a
Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (f)		$	12,834		$	12,632		$	12,480		$	12,450		$	12,300
Other ⁽¹⁰⁾		(67		)	(74		)	(80		)	(117		)	(121		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (g)	$	12,767		$	12,558		$	12,400		$	12,333		$	12,179
Risk-weighted assets, determined in accordance with U.S. Basel I regulatory requirements (h)		n/a			n/a			n/a			$	96,663		n/a
Add: Adjustments		n/a			n/a			n/a			205			n/a
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (i)		$	92,729		$	93,179		$	98,723		96,868			$	96,239
Add: Adjustments		(160		)	(67		)	(74		)	1,301			1,441
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased in) (j)	$	92,569		$	93,112		$	98,649		$	98,169		$	97,680
Tier 1 common capital ratio (e)/(h) ^{(9) (10) (12)}		n/a			n/a			n/a			12.74		%	n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) (f)/(i) ^{(9) (13)}		n/a			n/a			n/a			12.85			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) (g)/(j) ^{(9) (14)}		13.79		%	13.49		%	12.57		%	12.56			12.47		%

____________________________________________

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 Nine Months Ended
		September 30,			September 30,
(Dollars in millions)		2015			2014 ⁽¹⁾

Net income attributable to MUAH		$	504		$	663
Net adjustments for merger costs related to acquisitions, net of tax		14			39
Net adjustments for privatization transaction, net of tax		9			(16		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	527		$	686

Average total assets		$	113,165		$	108,039
Less: Net adjustments related to privatization transaction		2,230			2,262
Average total assets, excluding impact of privatization transaction		$	110,935		$	105,777
Return on average assets ⁽⁴⁾		0.59		%	0.82		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions ^{(4) (5)}	0.63			0.86

Average MUAH stockholder's equity		$	15,248		$	14,675
Less: Adjustments for merger costs related to acquisitions		(171		)	(132		)
Less: Net adjustments for privatization transaction		2,275			2,296
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,144		$	12,511
Return on average MUAH stockholder's equity ⁽⁴⁾		4.39		%	6.01		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions ^{(4) (5)}	5.33			7.30

Noninterest expense		$	2,547		$	2,026
Less: Staff costs associated with fees from affiliates - support services		363			88
Less: Foreclosed asset expense and other credit costs		4			(1		)
Less: Productivity initiative costs		33			11
Less: Low income housing credit (LIHC) investment amortization expense		9			9
Less: Expenses of the LIHC consolidated VIEs		32			23
Less: Merger and business integration costs		23			64
Less: Net adjustments related to privatization transaction		23			31
Less: Intangible asset amortization		9			10
Less: Contract termination fee		23			—
	Noninterest expense, as adjusted (a)	$	2,028		$	1,791

Total revenue		$	3,224		$	2,924
Add: Net interest income taxable-equivalent adjustment		18			16
Less: Fees from affiliates - support services		393			94
Less: Productivity initiative gains		—			—
Less: Accretion related to privatization-related fair value adjustments		6			20
Less: Other credit costs		(4		)	18
	Total revenue, as adjusted (b)	$	2,847		$	2,808
Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		71.28		%	63.74		%

____________________________________________

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 September 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 September 30, 2015, June 30, 2015, March 31, 2015, and September 30, 2014 are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' 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' 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 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 as a percentage of 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 nonaccrual 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 $30 million, $36 million, $52 million, $65 million, and $103 million that are 90 days or more past due and still accruing at September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 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

Attached files

MUFG Americas Holdings Corp Reports

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