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

MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 25, 2016

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8-K - 8-K - MUFG Americas Holdings Corp	muah8kq22016.htm

Exhibit 99.1

MUFG Americas Holdings Corporation

A member of MUFG, a global financial group

FOR IMMEDIATE RELEASE (July 25, 2016)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS SECOND QUARTER NET INCOME OF $305 MILLION

NEW YORK - MUFG Americas Holdings Corporation ("MUAH" or "the Company"), parent company of San Francisco-based MUFG Union Bank, N.A. ("the Bank"), today reported net income for the quarter of $305 million, compared with $49 million for the prior quarter and $181 million for the year-ago quarter.

Highlights:


◦	Net income for the second quarter was $305 million, up $256 million from the first quarter of 2016.


◦	Total revenue was up $94 million while noninterest expense was down $66 million compared with the first quarter of 2016.


◦	The reversal of provision for credit losses was $37 million compared with a provision for credit losses of $162 million in the first quarter of 2016.


◦	Average loans held for investment during the second quarter of 2016 were $79.9 billion, up $1.5 billion from the first quarter of 2016.

◦

Mitsubishi UFJ Financial Group, Inc. designated MUAH as its Intermediate Holding Company ("IHC") in accordance with the requirements of the U.S. Federal Reserve Board's final rules for Enhanced Prudential Standards and transferred substantially all interests in its U.S. subsidiaries to the IHC on July 1, 2016. The subsidiaries include MUFG Securities Americas, Inc. (formerly Mitsubishi UFJ Securities (USA), Inc.), a registered broker-dealer, and various other non-bank subsidiaries with approximately $36 billion in total assets as of March 31, 2016.



	1

The following table presents financial highlights for the periods ended June 30, 2016, March 31, 2016 and June 30, 2015:



										Percent Change to
	As of and for the Three Months Ended									June 30, 2016 from
(Dollars in millions)	June 30, 2016			March 31, 2016			June 30, 2015			March 31, 2016		June 30, 2015
Results of operations:
Net interest income	$	720		$	697		$	719		3	%	—	%
Noninterest income	466			395			385			18		21
Total revenue	1,186			1,092			1,104			9		7
Noninterest expense	810			876			843			(8	)	(4	)
Pre-tax, pre-provision income ⁽¹⁾	376			216			261			74		44
(Reversal of) provision for credit losses	(37		)	162			15			(123	)	(347	)
Income before income taxes and including
noncontrolling interests	413			54			246			nm		68
Income tax expense	119			17			71			nm		68
Net income including noncontrolling interests	294			37			175			nm		68
Deduct: Net loss from noncontrolling interests	11			12			6			(8	)	83
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	305		$	49		$	181		nm		69

Balance sheet (period average):
Total assets	$	116,281		$	115,866		$	112,907		—		3
Total securities	23,259			23,507			22,915			(1	)	2
Total loans held for investment	79,934			78,450			76,751			2		4
Earning assets	105,150			104,888			102,289			—		3
Total deposits	83,663			84,010			82,147			—		2
MUAH stockholder's equity	15,918			15,687			15,238			1		4
Net interest margin ^{(3) (7)}	2.77		%	2.69		%	2.84		%

Balance sheet (end of period):
Total assets	$	117,156		$	120,909		$	114,266		(3	)	3
Total securities	23,105			23,616			24,287			(2	)	(5	)
Total loans held for investment	79,392			79,299			76,399			—		4
Core deposits ⁽²⁾	75,296			74,882			73,080			1		3
Total deposits	82,692			89,500			81,702			(8	)	1
Long-term debt	10,445			11,843			8,852			(12	)	18
MUAH stockholder's equity	16,179			15,758			15,260			3		6

____________________________________

Refer to Exhibit 16 for footnote explanations.



	2

Summary of Second Quarter Results

Second Quarter Total Revenue

For the second quarter of 2016, total revenue (net interest income plus noninterest income) was $1.2 billion, up $94 million from the first quarter of 2016. Net interest income for the second quarter of 2016 was $720 million, up $23 million compared with the first quarter of 2016 due to an increase in loans held for investment and the net interest margin. The net interest margin increased 8 basis points to 2.77%, reflecting higher yields on securities and a favorable change in the mix of borrowed funds. Average total deposits were $83.7 billion, down slightly compared with the first quarter of 2016.

For the second quarter of 2016, noninterest income was $466 million, up $71 million, or 18%, compared with the first quarter of 2016, largely due to an increase in fees from affiliates in the current quarter and impairments on oil and gas-related private equity investments in the prior quarter.

Compared with the second quarter of 2015, total revenue increased $82 million, substantially due to increases in fees from affiliates and securities gains and a decrease in FDIC indemnification asset amortization expense.

Second Quarter Noninterest Expense

Noninterest expense for the second quarter of 2016 was $810 million, down $66 million compared with the first quarter of 2016 and down $33 million from the second quarter of 2015. The decrease from the first quarter of 2016 was due primarily to decreases in salaries and employee benefits and professional and outside services.

Compared with the second quarter of 2015, the decrease in noninterest expense was largely due to a decrease in salaries and employee benefits expense and a contract termination fee in the second quarter of 2015.

The effective tax rate for the second quarter of 2016 was 28.8%, compared with an effective tax rate of 31.5% for the first quarter of 2016.



	3

Business Integration Initiative - Second Quarter Summary Impact⁽¹⁴⁾

For the quarters ended June 30, 2016, March 31, 2016 and June 30, 2015, the Company recorded the following fee income and costs related to support services:



	For the Three Months Ended
(Dollars in millions)	June 30, 2016		March 31, 2016		June 30, 2015

Fees from affiliates - support services	$	147	$	149	$	134

Staff costs associated with fees from
affiliates - support services	$	137	$	139	$	123

__________________________

Refer to Exhibit 16 for footnote explanations.

The Company also recognized fees from affiliates through revenue sharing agreements with BTMU for various business and banking services.

Balance Sheet

At June 30, 2016, total assets were $117.2 billion, down $3.7 billion from the prior quarter. Cash and cash equivalents and total deposits were down $4.5 billion and $6.8 billion, respectively, compared with the prior quarter-end, due primarily to a single short-term deposit at the previous quarter-end. Core deposits were up $414 million, compared with the prior quarter-end.



	4

Credit Quality

The following table presents credit quality data for the quarters ended June 30, 2016, March 31, 2016 and June 30, 2015:




	As of and for the Three Months Ended
(Dollars in millions)	June 30, 2016			March 31, 2016			June 30, 2015

Total (reversal of) provision for credit losses	$	(37	)	$	162		$	15
Net loans charged-off	98			4			20
Nonaccrual loans	632			956			362
Criticized loans held for investment ⁽¹²⁾	2,859			3,066			1,395

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.94		%	1.11		%	0.70		%
Nonaccrual loans	118.24			91.99			147.98
Allowance for credit losses to ⁽¹³⁾:
Total loans held for investment	1.15			1.32			0.89
Nonaccrual loans	144.50			109.68			188.39
Nonaccrual loans to total loans held for investment	0.80			1.21			0.47

____________________________________

Refer to Exhibit 16 for footnote explanations.

In the second quarter of 2016, the reversal of provision for credit losses was $37 million, compared with a provision of $162 million for the first quarter of 2016 and a provision of $15 million for the second quarter of 2015. The change in the provision for credit losses from the first quarter of 2016 reflects stabilization in the credit quality of the oil and gas sector of our loan portfolio and improving credit quality elsewhere in the commercial portfolio. As of June 30, 2016, our oil and gas commitments were comprised of 78% petroleum exploration and production ("PEP") companies, of which 77% were reserve-based loans. Reserve-based lending typically consists of loans collateralized with oil and gas reserves.

Criticized loans outstanding within the PEP portfolio declined $128 million during the second quarter of 2016 largely due to transfers to held for sale and charge-offs. The Company recorded net charge-offs of $98 million, substantially related to PEP loans. $51 million of the charge-offs resulted from the transfer of certain PEP loans to held for sale. The following table provides further information about our petroleum exploration and production loan portfolio:



	5



	As of
(Dollars in millions)	June 30, 2016		March 31, 2016		December 31, 2015
Petroleum Exploration and Production:
Loan commitments	$	4,529	$	5,519	$	5,768
Loans outstanding	2,434		3,080		2,943
Criticized commitments	2,541		2,701		2,156
Criticized outstanding	1,577		1,705		1,226
Allowance for credit losses	320		415		319
Allowance for loan losses	287		386		291

Capital

The following table presents capital ratio data as of June 30, 2016 and March 31, 2016:



	June 30, 2016		March 31, 2016

Capital ratios:

Regulatory:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(8) (9)}	13.63	%	13.33	%
Tier 1 risk-based capital ratio ^{(8) (9)}	13.63		13.33
Total risk-based capital ratio ^{(8) (9)}	15.48		15.32
Tier 1 leverage ratio ^{(8) (9)}	11.62		11.41

Other:
Tangible common equity ratio ⁽¹⁰⁾	11.27	%	10.55	%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(8) (11)}	13.61		13.31

____________________________________

Refer to Exhibit 16 for footnote explanations.

The Company’s stockholder’s equity was $16.2 billion at June 30, 2016, compared with $15.8 billion at March 31, 2016.

The Company's preliminary Common Equity Tier 1, Tier 1 and Total risk-based capital ratios, calculated in accordance with U.S. Basel III regulatory capital rules, were 13.63%, 13.63% and 15.48%, respectively, at June 30, 2016. The tangible common equity ratio was 11.27% at June 30, 2016.

The Company’s estimated Common Equity Tier 1 risk-based capital ratio under U.S. Basel III regulatory capital rules (standardized approach, fully phased-in) was 13.61% at June 30, 2016.



	6

Non-GAAP Financial Measures

This press release includes additional capital ratios (tangible common equity and Common Equity Tier 1 capital (calculated under the U.S. Basel III standardized approach on a fully phased-in basis)) to facilitate the understanding of the Company’s capital structure and for use in assessing and comparing the quality and composition of the Company's capital structure to that of 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. Please refer to our separate reconciliation of non-GAAP financial measures in our financial supplement.

About MUFG Americas Holdings Corporation

Headquartered in New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with total assets of $117.2 billion at June 30, 2016. Its principal subsidiary, MUFG Union Bank, N.A., provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. As of June 30, 2016, MUFG Union Bank, N.A. operated 366 branches, comprised primarily of retail banking branches in the West Coast states, along with commercial branches in Texas, Illinois, New York and Georgia, as well as two international offices. MUFG Americas Holdings Corporation is owned by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Financial Group, Inc., one of the world’s leading financial groups. The Bank of Tokyo-Mitsubishi UFJ, Ltd. is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. Visit www.unionbank.com or www.mufgamericas.com for more information.

###



	7

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															June 30, 2016 from
(Dollars in millions)	June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2016		June 30, 2015
Results of operations:
Net interest income	$	720		$	697		$	708		$	705		$	719		3	%	—	%
Noninterest income	466			395			413			397			385			18		21
Total revenue	1,186			1,092			1,121			1,102			1,104			9		7
Noninterest expense	810			876			891			855			843			(8	)	(4	)
Pre-tax, pre-provision income ⁽¹⁾	376			216			230			247			261			74		44
(Reversal of) provision for credit losses	(37		)	162			192			18			15			(123	)	(347	)
Income before income taxes and including
noncontrolling interests	413			54			38			229			246			nm		68
Income tax expense	119			17			(18		)	64			71			nm		68
Net income including noncontrolling interests	294			37			56			165			175			nm		68
Deduct: Net loss from noncontrolling interests	11			12			13			21			6			(8	)	83
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	305		$	49		$	69		$	186		$	181		nm		69

Balance sheet (end of period):
Total assets	$	117,156		$	120,909		$	116,216		$	115,157		$	114,266		(3	)	3
Total securities	23,105			23,616			24,502			24,696			24,287			(2	)	(5	)
Total loans held for investment	79,392			79,299			77,599			76,641			76,399			—		4
Core deposits ⁽²⁾	75,296			74,882			76,094			74,785			73,080			1		3
Total deposits	82,692			89,500			84,340			82,693			81,702			(8	)	1
Long-term debt	10,445			11,843			12,349			11,357			8,852			(12	)	18
MUAH stockholder's equity	16,179			15,758			15,461			15,603			15,260			3		6

Balance sheet (period average):
Total assets	$	116,281		$	115,866		$	115,914		$	113,451		$	112,907		—		3
Total securities	23,259			23,507			24,351			24,141			22,915			(1	)	2
Total loans held for investment	79,934			78,450			77,832			76,177			76,751			2		4
Earning assets	105,150			104,888			104,966			102,899			102,289			—		3
Total deposits	83,663			84,010			84,033			82,488			82,147			—		2
MUAH stockholder's equity	15,918			15,687			15,722			15,435			15,238			1		4

Performance ratios:
Return on average assets ⁽³⁾	1.05		%	0.17		%	0.24		%	0.66		%	0.64		%
Return on average MUAH stockholder's equity ⁽³⁾	7.65			1.25			1.75			4.83			4.73
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}	1.09			0.18			0.27			0.70			0.67
Return on average MUAH stockholder's equity excluding the
impact of privatization transaction and merger costs related to
acquisitions ^{(3) (4)}	8.96			1.54			2.24			5.82			5.69
Efficiency ratio ⁽⁵⁾	68.42			80.17			79.51			77.62			76.42
Adjusted efficiency ratio ⁽⁶⁾	61.13			72.12			69.42			70.16			69.02
Net interest margin ^{(3) (7)}	2.77			2.69			2.72			2.76			2.84

Capital ratios:

Regulatory:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(8) (9)}	13.63		%	13.33		%	13.63		%	13.84		%	13.56		%
Tier 1 risk-based capital ratio ^{(8) (9)}	13.63			13.33			13.64			13.84			13.56
Total risk-based capital ratio ^{(8) (9)}	15.48			15.32			15.56			15.60			15.30
Tier 1 leverage ratio ^{(8) (9)}	11.62			11.41			11.40			11.58			11.46

Other:
Tangible common equity ratio ⁽¹⁰⁾	11.27		%	10.55		%	10.71		%	10.93		%	10.70		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(8) (11)}	13.61			13.31			13.46			13.79			13.49

____________________________________________

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, 2016 from
(Dollars in millions)	2016			2015			June 30, 2015
Results of operations:
Net interest income	$	1,417		$	1,402			1	%
Noninterest income	861			720				20
Total revenue	2,278			2,122				7
Noninterest expense	1,686			1,692				—
Pre-tax, pre-provision income ⁽¹⁾	592			430				38
Provision for credit losses	125			18				nm
Income before income taxes and including
noncontrolling interests	467			412				13
Income tax expense	136			105				30
Net income including noncontrolling interests	331			307				8
Deduct: Net loss from noncontrolling interests	23			11				109
Net income attributable to MUAH	$	354		$	318			11

Balance sheet (end of period):
Total assets	$	117,156		$	114,266			3
Total securities	23,105			24,287				(5	)
Total loans held for investment	79,392			76,399				4
Core deposits ⁽²⁾	75,296			73,080				3
Total deposits	82,692			81,702				1
Long-term debt	10,445			8,852				18
MUAH stockholder's equity	16,179			15,260				6

Balance sheet (period average):
Total assets	$	116,074		$	113,020			3
Total securities	23,383			22,546				4
Total loans held for investment	79,193			77,026				3
Earning assets	105,020			102,443				3
Total deposits	83,836			83,112				1
MUAH stockholder's equity	15,804			15,154				4

Performance ratios:
Return on average assets ⁽³⁾	0.61		%	0.56		%
Return on average MUAH stockholder's equity ⁽³⁾	4.48			4.19
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(3) (4)}	0.64			0.60
Return on average MUAH stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(3) (4)}	5.29			5.10
Efficiency ratio ⁽⁵⁾	74.06			79.75
Adjusted efficiency ratio ⁽⁶⁾	66.39			71.86
Net interest margin ^{(3) (7)}	2.73			2.77

___________________________________________

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, 2016 from
(Dollars in millions)	June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2016		June 30, 2015

Credit Data:
(Reversal of) provision for loan losses	$	(34	)	$	158		$	168		$	23		$	26		(122	)%	(231	)%
(Reversal of) provision for losses on unfunded credit commitments	(3		)	4			24			(5		)	(11		)	(175	)	73
Total (reversal of) provision for credit losses	$	(37	)	$	162		$	192		$	18		$	15		(123	)	(347	)

Net loans charged-off (recovered)	$	98		$	4		$	(6	)	$	11		$	20		nm		390
Nonperforming assets	648			974			573			434			381			(33	)	70
Criticized loans held for investment ⁽¹²⁾	2,859			3,066			2,454			1,642			1,395			(7	)	105

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.94		%	1.11		%	0.93		%	0.71		%	0.70		%
Nonaccrual loans	118.24			91.99			130.53			130.46			147.98
Allowance for credit losses to ⁽¹³⁾:
Total loans held for investment	1.15			1.32			1.14			0.90			0.89
Nonaccrual loans	144.50			109.68			160.42			164.09			188.39
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	0.49			0.02			(0.03		)	0.06			0.10
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.82			1.23			0.74			0.57			0.50
Nonperforming assets to total assets	0.55			0.81			0.49			0.38			0.33
Nonaccrual loans to total loans held for investment	0.80			1.21			0.71			0.55			0.47


	As of and for the Six Months Ended						Percent Change
	June 30,			June 30,			to June 30, 2016
(Dollars in millions)	2016			2015			from June 30, 2015
Credit Data:
Provision for loan losses	$	124		$	23		439%
(Reversal of) provision for losses on unfunded credit commitments	1			(5		)	120
Total provision for credit losses	$	125		$	18		nm

Net loans charged-off	$	102		$	23		343%
Credit Ratios:
Net loans charged-off to average total loans held for investment⁽³⁾	0.26		%	0.06		%

________________________________________

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, 2016			March 31, 2016		December 31, 2015			September 30, 2015		June 30, 2015
Interest Income
	Loans		$	711		$	697	$	693		$	688	$	700
	Securities		114			109		124			116		121
	Other		5			6		4			5		2
		Total interest income	830			812		821			809		823

Interest Expense
	Deposits		49			49		50			48		50
	Commercial paper and other short-term borrowings		4			1		1			3		2
	Long-term debt		57			65		62			53		52
		Total interest expense	110			115		113			104		104

Net Interest Income			720			697		708			705		719
	(Reversal of) provision for credit losses		(37		)	162		192			18		15
		Net interest income after provision for credit losses	757			535		516			687		704

Noninterest Income
	Service charges on deposit accounts		46			49		49			49		49
	Trust and investment management fees		30			31		28			27		26
	Trading account activities		20			13		21			7		19
	Securities gains, net		19			13		6			6		5
	Credit facility fees		28			27		28			27		30
	Merchant banking fees		23			14		17			22		20
	Brokerage commissions and fees		13			13		14			13		14
	Card processing fees, net		9			9		8			8		9
	Fees from affiliates ⁽¹⁴⁾		239			200		204			185		192
	Other, net		39			26		38			53		21
		Total noninterest income	466			395		413			397		385

Noninterest Expense
	Salaries and employee benefits		523			543		569			557		555
	Net occupancy and equipment		75			76		83			79		75
	Professional and outside services		75			102		82			78		64
	Software		37			36		34			28		29
	Regulatory assessments		13			14		13			11		14
	Intangible asset amortization		6			7		10			10		10
	Other		81			98		100			92		96
		Total noninterest expense	810			876		891			855		843

	Income before income taxes and including
	noncontrolling interests		413			54		38			229		246
	Income tax expense		119			17		(18		)	64		71
Net Income including Noncontrolling Interests			294			37		56			165		175
	Deduct: Net loss from noncontrolling interests		11			12		13			21		6
Net Income attributable to MUAH			$	305		$	49	$	69		$	186	$	181

____________________________________________

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, 2016		June 30, 2015
Interest Income
	Loans		$	1,408	$	1,378
	Securities		223		223
	Other		11		5
		Total interest income	1,642		1,606

Interest Expense
	Deposits		98		102
	Commercial paper and other short-term borrowings		5		3
	Long-term debt		122		99
		Total interest expense	225		204

Net Interest Income			1,417		1,402
	Provision for credit losses		125		18
		Net interest income after provision for credit losses	1,292		1,384

Noninterest Income
	Service charges on deposit accounts		95		98
	Trust and investment management fees		61		54
	Trading account activities		33		27
	Securities gains, net		32		8
	Credit facility fees		55		60
	Merchant banking fees		37		40
	Brokerage commissions and fees		26		27
	Card processing fees, net		18		17
	Fees from affiliates ⁽¹⁴⁾		439		358
	Other, net		65		31
		Total noninterest income	861		720

Noninterest Expense
	Salaries and employee benefits		1,066		1,122
	Net occupancy and equipment		151		155
	Professional and outside services		177		141
	Software		73		57
	Regulatory assessments		27		27
	Intangible asset amortization		13		20
	Other		179		170
		Total noninterest expense	1,686		1,692

	Income before income taxes and including
	noncontrolling interests		467		412
	Income tax expense		136		105
Net Income including Noncontrolling Interests			331		307
	Deduct: Net loss from noncontrolling interests		23		11
Net Income attributable to MUAH			$	354	$	318

___________________________________________

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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015
Assets
Cash and due from banks				$	1,517		$	1,599		$	1,756		$	1,596		$	1,815
Interest bearing deposits in banks				2,306			6,696			2,749			2,692			2,160
Federal funds sold and securities purchased under resale agreements				42			29			24			86			68
		Total cash and cash equivalents		3,865			8,324			4,529			4,374			4,043
Trading account assets				1,562			1,370			1,087			1,200			1,089
Securities available for sale				12,846			13,011			14,344			14,355			14,285
Securities held to maturity				10,259			10,605			10,158			10,341			10,002
Loans held for investment				79,392			79,299			77,599			76,641			76,399
	Allowance for loan losses			(747		)	(879		)	(721		)	(547		)	(536		)
		Loans held for investment, net		78,645			78,420			76,878			76,094			75,863
Premises and equipment, net				566			632			608			607			622
Goodwill				3,225			3,225			3,225			3,225			3,225
Other assets				6,188			5,322			5,387			4,961			5,137
			Total assets	$	117,156		$	120,909		$	116,216		$	115,157		$	114,266

Liabilities
Deposits:
	Noninterest bearing			$	32,861		$	38,556		$	32,463		$	31,869		$	30,156
	Interest bearing			49,831			50,944			51,877			50,824			51,546
		Total deposits		82,692			89,500			84,340			82,693			81,702
Commercial paper and other short-term borrowings				4,703			647			1,038			2,338			5,262
Long-term debt				10,445			11,843			12,349			11,357			8,852
Trading account liabilities				676			747			796			891			734
Other liabilities				2,262			2,203			2,017			2,044			2,216
			Total liabilities	100,778			104,940			100,540			99,323			98,766

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, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015		136			136			136			136			136
	Additional paid-in capital			7,240			7,250			7,241			7,224			7,208
	Retained earnings			9,189			8,885			8,836			8,768			8,582
	Accumulated other comprehensive loss			(386		)	(513		)	(752		)	(525		)	(666		)
			Total MUAH stockholder's equity	16,179			15,758			15,461			15,603			15,260
Noncontrolling interests				199			211			215			231			240
			Total equity	16,378			15,969			15,676			15,834			15,500
			Total liabilities and equity	$	117,156		$	120,909		$	116,216		$	115,157		$	114,266

____________________________________________

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, 2016							March 31, 2016
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁵⁾
Commercial and industrial	$	30,359		$	243	3.23	%	$	29,957		$	238	3.20	%
Commercial mortgage	15,095			139		3.66		14,485			133		3.68
Construction	2,211			21		3.92		2,272			23		3.93
Lease financing	733			11		5.58		732			8		4.56
Residential mortgage	27,770			230		3.31		27,366			231		3.38
Home equity and other consumer loans	3,473			43		4.96		3,315			40		4.85
Loans, before purchased credit-impaired loans	79,641			687		3.46		78,127			673		3.46
Purchased credit-impaired loans	293			27		36.86		323			25		31.04
Total loans held for investment	79,934			714		3.58		78,450			698		3.57
Securities	23,259			118		2.04		23,507			115		1.95
Interest bearing deposits in banks	1,668			2		0.56		2,400			3		0.53
Federal funds sold and securities purchased under resale agreements	66			—		0.23		78			—		0.46
Trading account assets	152			—		0.40		162			—		0.57
Other earning assets	71			3		7.28		291			3		3.62
Total earning assets	105,150			837		3.19		104,888			819		3.13
Allowance for loan losses	(873		)					(719		)
Cash and due from banks	1,608							1,704
Premises and equipment, net	611							608
Other assets ⁽¹⁶⁾	9,785							9,385
Total assets	$	116,281						$	115,866
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,558		29		0.30		$	38,397		28		0.30
Savings	5,743			—		0.04		5,715			1		0.06
Time	7,519			20		1.07		7,577			20		1.08
Total interest bearing deposits	50,820			49		0.39		51,689			49		0.38
Commercial paper and other short-term borrowings ⁽¹⁷⁾	2,853			4		0.57		1,098			1		0.37
Long-term debt	11,262			57		2.02		12,148			65		2.12
Total borrowed funds	14,115			61		1.73		13,246			66		1.98
Total interest bearing liabilities	64,935			110		0.68		64,935			115		0.71
Noninterest bearing deposits	32,843							32,321
Other liabilities ⁽¹⁸⁾	2,377							2,745
Total liabilities	100,155							100,001
Equity
MUAH stockholder's equity	15,918							15,687
Noncontrolling interests	208							178
Total equity	16,126							15,865
Total liabilities and equity	$	116,281						$	115,866

Net interest income/spread (taxable-equivalent basis)				727		2.51	%				704		2.42	%
Impact of noninterest bearing deposits						0.23							0.23
Impact of other noninterest bearing sources						0.03							0.04
Net interest margin						2.77							2.69
Less: taxable-equivalent adjustment				7							7
Net interest income				$	720						$	697

____________________________________________

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, 2016							June 30, 2015
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁵⁾
Commercial and industrial	$	30,359		$	243	3.23	%	$	28,107		$	224	3.19		%
Commercial mortgage	15,095			139		3.66		13,859			127		3.65
Construction	2,211			21		3.92		2,045			18		3.62
Lease financing	733			11		5.58		772			10		5.40
Residential mortgage	27,770			230		3.31		28,399			239		3.37
Home equity and other consumer loans	3,473			43		4.96		3,096			33		4.30
Loans, before purchased credit-impaired loans	79,641			687		3.46		76,278			651		3.42
Purchased credit-impaired loans	293			27		36.86		473			50		41.89
Total loans held for investment	79,934			714		3.58		76,751			701		3.66
Securities	23,259			118		2.04		22,915			126		2.20
Interest bearing deposits in banks	1,668			2		0.56		2,275			1		0.26
Federal funds sold and securities purchased under resale agreements	66			—		0.23		69			—		(0.47	)
Trading account assets	152			—		0.40		196			1		0.71
Other earning assets	71			3		7.28		83			—		4.00
Total earning assets	105,150			837		3.19		102,289			829		3.25
Allowance for loan losses	(873		)					(535		)
Cash and due from banks	1,608							1,619
Premises and equipment, net	611							615
Other assets ⁽¹⁶⁾	9,785							8,919
Total assets	$	116,281						$	112,907
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,558		29		0.30		$	37,986		29		0.31
Savings	5,743			—		0.04		5,588			1		0.06
Time	7,519			20		1.07		8,535			20		0.95
Total interest bearing deposits	50,820			49		0.39		52,109			50		0.39
Commercial paper and other short-term borrowings ⁽¹⁷⁾	2,853			4		0.57		3,826			2		0.21
Long-term debt	11,262			57		2.02		8,855			52		2.34
Total borrowed funds	14,115			61		1.73		12,681			54		1.69
Total interest bearing liabilities	64,935			110		0.68		64,790			104		0.64
Noninterest bearing deposits	32,843							30,038
Other liabilities ⁽¹⁸⁾	2,377							2,626
Total liabilities	100,155							97,454
Equity
MUAH stockholder's equity	15,918							15,238
Noncontrolling interests	208							215
Total equity	16,126							15,453
Total liabilities and equity	$	116,281						$	112,907

Net interest income/spread (taxable-equivalent basis)				727		2.51	%				725		2.61		%
Impact of noninterest bearing deposits						0.23							0.20
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.77							2.84
Less: taxable-equivalent adjustment				7							6
Net interest income				$	720						$	719

____________________________________________

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, 2016							June 30, 2015
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁵⁾
Commercial and industrial	$	30,158		$	481	3.21	%	$	28,250		$	435	3.11		%
Commercial mortgage	14,790			272		3.68		13,881			251		3.61
Construction	2,242			44		3.93		1,949			35		3.59
Lease financing	733			19		5.07		774			20		5.25
Residential mortgage	27,568			461		3.34		28,581			486		3.40
Home equity and other consumer loans	3,394			83		4.91		3,099			65		4.26
Loans, before purchased credit-impaired loans	78,885			1,360		3.46		76,534			1,292		3.39
Purchased credit-impaired loans	308			52		33.81		492			88		36.01
Total loans held for investment	79,193			1,412		3.57		77,026			1,380		3.60
Securities	23,383			233		2.00		22,546			232		2.06
Interest bearing deposits in banks	2,034			5		0.54		2,524			3		0.26
Federal funds sold and securities purchased under resale agreements	72			—		0.36		83			—		(0.32	)
Trading account assets	157			—		0.49		196			1		0.71
Other earning assets	181			6		4.34		68			1		3.97
Total earning assets	105,020			1,656		3.16		102,443			1,617		3.17
Allowance for loan losses	(796		)					(539		)
Cash and due from banks	1,656							1,625
Premises and equipment, net	609							618
Other assets ⁽¹⁶⁾	9,585							8,873
Total assets	$	116,074						$	113,020
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,977		57		0.30		$	38,845		59		0.31
Savings	5,729			1		0.05		5,569			2		0.06
Time	7,548			40		1.07		8,754			41		0.94
Total interest bearing deposits	51,254			98		0.38		53,168			102		0.39
Commercial paper and other short-term borrowings ⁽¹⁷⁾	1,975			5		0.52		3,411			3		0.21
Long-term debt	11,705			122		2.07		8,434			99		2.34
Total borrowed funds	13,680			127		1.85		11,845			102		1.72
Total interest bearing liabilities	64,934			225		0.69		65,013			204		0.63
Noninterest bearing deposits	32,582							29,944
Other liabilities ⁽¹⁸⁾	2,561							2,687
Total liabilities	100,077							97,644
Equity
MUAH stockholder's equity	15,804							15,154
Noncontrolling interests	193							222
Total equity	15,997							15,376
Total liabilities and equity	$	116,074						$	113,020

Net interest income/spread (taxable-equivalent basis)				1,431		2.47	%				1,413		2.54		%
Impact of noninterest bearing deposits						0.23							0.20
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.73							2.77
Less: taxable-equivalent adjustment				14							11
Net interest income				$	1,417						$	1,402

____________________________________________

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, 2016		March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	29,291	$	30,212	$	29,730	$	28,462	$	27,854
		Commercial mortgage			15,144		14,920		13,904		13,943		13,800
		Construction			2,255		2,251		2,297		2,120		2,071
		Lease financing			723		732		737		748		759
			Total commercial portfolio		47,413		48,115		46,668		45,273		44,484

		Residential mortgage			28,244		27,495		27,344		27,856		28,374
		Home equity and other consumer loans			3,459		3,385		3,251		3,124		3,098
			Total consumer portfolio		31,703		30,880		30,595		30,980		31,472
				Loans held for investment, before purchased credit-impaired loans	79,116		78,995		77,263		76,253		75,956
		Purchased credit-impaired loans			276		304		336		388		443

				Total loans held for investment	$	79,392	$	79,299	$	77,599	$	76,641	$	76,399

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	396	$	702	$	284	$	138	$	64
		Commercial mortgage			26		30		37		40		43
			Total commercial portfolio		422		732		321		178		107

		Residential mortgage			177		186		190		201		209
		Home equity and other consumer loans			28		32		35		32		36
			Total consumer portfolio		205		218		225		233		245

				Nonaccrual loans, before purchased credit-impaired loans	627		950		546		411		352
		Purchased credit-impaired loans			5		6		6		8		10
				Total nonaccrual loans	632		956		552		419		362

	OREO				16		18		21		15		19

				Total nonperforming assets	$	648	$	974	$	573	$	434	$	381

	Loans 90 days or more past due and still accruing ⁽¹⁹⁾				$	2	$	6	$	2	$	4	$	2

__________________________________________

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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015

Analysis of Allowance for Credit Losses
Allowance for loan losses, beginning of period	$	879		$	721		$	547		$	536		$	530
(Reversal of) provision for loan losses	(34		)	158			168			23			26
Other	—			4			—			(1		)	—
Loans charged-off:
Commercial and industrial	(46		)	(8		)	—			(11		)	(12		)
Commercial and industrial - transfer to held for sale	(51		)	—			—			—			—
Commercial mortgage	—			—			—			—			(1		)
Total commercial portfolio	(97		)	(8		)	—			(11		)	(13		)
Residential mortgage	—			1			—			—			—
Home equity and other consumer loans	(2		)	(2		)	(1		)	(1		)	(3		)
Total consumer portfolio	(2		)	(1		)	(1		)	(1		)	(3		)
Purchased credit-impaired loans	—			—			(1		)	(3		)	(8		)
Total loans charged-off	(99		)	(9		)	(2		)	(15		)	(24		)
Recoveries of loans previously charged-off:
Commercial and industrial	1			1			7			2			3
Commercial mortgage	—			3			—			1			—
Total commercial portfolio	1			4			7			3			3
Home equity and other consumer loans	—			1			—			1			1
Total consumer portfolio	—			1			—			1			1
Purchased credit-impaired loans	—			—			1			—			—
Total recoveries of loans previously charged-off	1			5			8			4			4
Net loans (charged-off) recovered	(98		)	(4		)	6			(11		)	(20		)
Ending balance of allowance for loan losses	747			879			721			547			536
Allowance for losses on unfunded credit commitments	166			169			165			141			147
Total allowance for credit losses	$	913		$	1,048		$	886		$	688		$	683



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			June 30, 2016				March 31, 2016				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		March 31, 2016			March 31, 2016
Asset Liability Management securities:
U.S. Treasury			$	155	$	159	$	148	$	152	$	7		5	%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		6,009		6,052		6,302		6,308		(256		)	(4	)
	Privately issued		245		248		202		203		45			22
Privately issued - commercial mortgage-backed securities			1,474		1,527		1,469		1,492		35			2
Collateralized loan obligations			3,267		3,238		3,267		3,227		11			—
Asset-backed and other			7		7		7		7		—			—
		Asset Liability Management securities	11,157		11,231		11,395		11,389		(158		)	(1	)
Other debt securities:
Direct bank purchase bonds			1,547		1,575		1,560		1,581		(6		)	—
Other			32		33		32		33		—			—
Equity securities			6		7		6		8		(1		)	(13	)
		Total securities available for sale	$	12,742	$	12,846	$	12,993	$	13,011	$	(165	)	(1	)%

Securities Held to Maturity

			June 30, 2016				March 31, 2016				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²⁰⁾		Value		Amount ⁽²⁰⁾		Value		March 31, 2016			March 31, 2016
U.S. Treasury			$	490	$	505	$	490	$	502	$	—		—	%
U.S. government-sponsored agencies			—		—		200		200		(200		)	(100	)
U.S. government agency and government-sponsored agencies-residential mortgage-backed securities			8,126		8,329		8,254		8,403		(128		)	(2	)
U.S. government agency and government-sponsored agencies-commercial mortgage-backed securities			1,643		1,739		1,661		1,743		(18		)	(1	)
		Total securities held to maturity	$	10,259	$	10,573	$	10,605	$	10,848	$	(346	)	(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)		June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015
Net income attributable to MUAH		$	305		$	49		$	69		$	186		$	181
Net adjustments for merger costs related to acquisitions, net of tax		3			4			4			5			3
Net adjustments for privatization transaction, net of tax		2			—			4			3			3
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	310		$	53		$	77		$	194		$	187

Average total assets		$	116,281		$	115,866		$	115,914		$	113,451		$	112,907
Less: Net adjustments related to privatization transaction		2,213			2,215			2,218			2,224			2,230
Average total assets, excluding impact of privatization transaction		$	114,068		$	113,651		$	113,696		$	111,227		$	110,677
Return on average assets ⁽³⁾		1.05		%	0.17		%	0.24		%	0.66		%	0.64		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(3) (4)}	1.09			0.18			0.27			0.70			0.67

Average MUAH stockholder's equity		$	15,918		$	15,687		$	15,722		$	15,435		$	15,238
Less: Adjustments for merger costs related to acquisitions		(187		)	(183		)	(179		)	(175		)	(171		)
Less: Net adjustments for privatization transaction		2,273			2,273			2,273			2,273			2,275
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,832		$	13,597		$	13,628		$	13,337		$	13,134
Return on average MUAH stockholder's equity ⁽³⁾		7.65		%	1.25		%	1.75		%	4.83		%	4.73		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(3) (4)}	8.96			1.54			2.24			5.82			5.69

Noninterest expense		$	810		$	876		$	891		$	855		$	843
Less: Staff costs associated with fees from affiliates - support services		137			139			138			128			123
Less: Foreclosed asset expense and other credit costs		—			(1		)	—			3			—
Less: Productivity initiative costs		4			12			41			3			2
Less: Low income housing credit (LIHC) investment amortization expense		2			2			6			5			2
Less: Expenses of the LIHC consolidated VIEs		11			12			13			14			10
Less: Merger and business integration costs		5			5			6			8			6
Less: Net adjustments related to privatization transaction		5			5			8			8			7
Less: Intangible asset amortization		2			3			3			2			3
Less: Contract termination fee		—			—			—			—			23
	Noninterest expense, as adjusted (a)	$	644		$	699		$	676		$	684		$	667

Total revenue		$	1,186		$	1,092		$	1,121		$	1,102		$	1,104
Add: Net interest income taxable-equivalent adjustment		7			7			7			7			6
Less: Fees from affiliates - support services		147			149			149			138			134
Less: Productivity initiative gains		—			—			—			—			(1		)
Less: Accretion related to privatization-related fair value adjustments		3			5			2			3			2
Less: Other credit costs		(9		)	(13		)	4			(8		)	8
Less: Impairment on private equity investments		—			(12		)	—			—			—
	Total revenue, as adjusted (b)	$	1,052		$	970		$	973		$	976		$	967
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		61.13		%	72.12		%	69.42		%	70.16		%	69.02		%

____________________________________________

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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015
Total MUAH stockholder's equity		$	16,179		$	15,758		$	15,461		$	15,603		$	15,260
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except mortgage servicing rights (MSRs)		175			182			190			199			214
Less: Deferred tax liabilities related to goodwill and intangible assets		(48		)	(49		)	(39		)	(39		)	(41		)
	Tangible common equity (c)	$	12,827		$	12,400		$	12,085		$	12,218		$	11,862
Total assets		$	117,156		$	120,909		$	116,216		$	115,157		$	114,266
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		175			182			190			199			214
Less: Deferred tax liabilities related to goodwill and intangible assets		(48		)	(49		)	(39		)	(39		)	(41		)
	Tangible assets (d)	$	113,804		$	117,551		$	112,840		$	111,772		$	110,868
Tangible common equity ratio (c)/(d) ⁽¹⁰⁾		11.27		%	10.55		%	10.71		%	10.93		%	10.70		%

Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (e)		$	13,233		$	12,936		$	12,920		$	12,834		$	12,632
Other		(38		)	(40		)	(61		)	(67		)	(74		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (f)	$	13,195		$	12,896		$	12,859		$	12,767		$	12,558
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (g)		$	97,061		$	97,011		$	94,775		$	92,729		$	93,179
Add: Adjustments		(118		)	(122		)	756			(160		)	(67		)
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased-in) (h)	$	96,943		$	96,889		$	95,531		$	92,569		$	93,112
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) (f)/(h) ^{(8) (11)}		13.61		%	13.31		%	13.46		%	13.79		%	13.49		%

____________________________________________

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)		2016			2015

Net income attributable to MUAH		$	354		$	318
Net adjustments for merger costs related to acquisitions, net of tax		7			9
Net adjustments for privatization transaction, net of tax		2			6
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	363		$	333

Average total assets		$	116,074		$	113,020
Less: Net adjustments related to privatization transaction		2,214			2,233
Average total assets, excluding impact of privatization transaction		$	113,860		$	110,787
Return on average assets ⁽³⁾		0.61		%	0.56		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions ^{(3) (4)}	0.64			0.60

Average MUAH stockholder's equity		$	15,804		$	15,154
Less: Adjustments for merger costs related to acquisitions		(185		)	(169		)
Less: Net adjustments for privatization transaction		2,273			2,275
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,716		$	13,048
Return on average MUAH stockholder's equity ⁽³⁾		4.48		%	4.19		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions ^{(3) (4)}	5.29			5.10

Noninterest expense		$	1,686		$	1,692
Less: Staff costs associated with fees from affiliates - support services		276			235
Less: Foreclosed asset expense and other credit costs		(1		)	1
Less: Productivity initiative costs		16			30
Less: Low income housing credit (LIHC) investment amortization expense		4			4
Less: Expenses of the LIHC consolidated VIEs		23			18
Less: Merger and business integration costs		10			15
Less: Net adjustments related to privatization transaction		10			15
Less: Intangible asset amortization		5			7
Less: Contract termination fee		—			23
	Noninterest expense, as adjusted (a)	$	1,343		$	1,344

Total revenue		$	2,278		$	2,122
Add: Net interest income taxable-equivalent adjustment		14			11
Less: Fees from affiliates - support services		296			255
Less: Productivity initiative gains		—			—
Less: Accretion related to privatization-related fair value adjustments		8			3
Less: Other credit costs		(22		)	4
Less: Impairment on private equity investments		(12		)	—
	Total revenue, as adjusted (b)	$	2,022		$	1,871
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		66.39		%	71.86		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 15

MUFG Americas Holdings Corporation and Subsidiaries

Footnotes


(1)	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.


(2)	Core deposits exclude brokered deposits, foreign time deposits, domestic time deposits greater than $250,000 and certain other deposits not considered to be core customer relationships.


(3)	Annualized.


(4)	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.


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

(6)

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, 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, other credit costs and impairment on private equity investments. 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.

(7)

Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rate of 35%. Beginning in the second quarter of 2016, the effect of interest rate hedges on commercial loans was reflected in each loan category. Previously, the entire effect of interest rate hedges was included in commercial and industrial interest income. Prior period amounts have been reclassified to conform to the current presentation.


(8)	Preliminary as of June 30, 2016.


(9)	These capital ratios 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.

(10)

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.

(11)

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.


(12)	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.


(13)	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.


(14)	Fees from affiliates represent income resulting from the business integration initiative effective July 1, 2014, whereby BTMU integrated its U.S. branch banking operations, including its employees, under the Bank's operations. The Bank and BTMU participate in a master services agreement whereby the Bank provides BTMU with support services in exchange for fee income.


(15)	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.


(16)	Includes noninterest bearing trading account assets.


(17)	Includes interest bearing trading liabilities.


(18)	Includes noninterest bearing trading account liabilities.

(19)

Excludes loans totaling $16 million, $28 million, $16 million, $30 million, and $36 million that are 90 days or more past due and still accruing at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, 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.


(20)	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



	Exhibit 16

Alan Gulick

Doug Lambert

Corporate Communications

Investor Relations

(425) 423-7317

(212) 782-5911