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 - October 24, 2016

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MUFG Americas Holdings Corp Reports

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8-K - 8-K - MUFG Americas Holdings Corp	muah8kq32016.htm

Exhibit 99.1

MUFG Americas Holdings Corporation

A member of MUFG, a global financial group

FOR IMMEDIATE RELEASE (October 24, 2016)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS THIRD QUARTER NET INCOME OF $260 MILLION

NEW YORK - MUFG Americas Holdings Corporation (the Company), parent company of San Francisco-based MUFG Union Bank, N.A. (the Bank), today reported net income for the quarter of $260 million, compared with $334 million for the prior quarter and $188 million for the year-ago quarter.

Third Quarter Results:


◦	Net income for the third quarter was $260 million, down $74 million from the second quarter of 2016.


◦	The provision for credit losses was $73 million compared with a reversal of provision for credit losses of $39 million in the second quarter of 2016. The current quarter provision was due in part to credit losses within the oil and gas loan portfolio.


◦	Average loans held for investment during the third quarter of 2016 were $80.5 billion, down $1.1 billion from the second quarter of 2016.


◦	Average deposits during the third quarter of 2016 were $84.2 billion, up $0.6 billion from the second quarter of 2016.

Formation of the U.S. Intermediate Holding Company

The financial information included for all periods presented reflects the designation of MUFG Americas Holdings Corporation (MUAH) as the U.S. Intermediate Holding Company (IHC) of its ultimate parent, Mitsubishi UFJ Financial Group, Inc. (MUFG) on July 1, 2016, in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential Standards. The IHC formation resulted in the transfer of interests in substantially all of MUFG’s U.S. subsidiaries to MUAH. The subsidiaries include MUFG Securities Americas Inc. (MUSA) (formerly Mitsubishi UFJ Securities (USA), Inc.), a registered broker-dealer, and various other non-



	1

bank subsidiaries. The assets received and liabilities assumed were transferred at book value, and all prior periods have been revised to include the results of the transferred IHC entities.

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



										Percent Change to
	As of and for the Three Months Ended									September 30, 2016 from
(Dollars in millions)	September 30, 2016			June 30, 2016			September 30, 2015			June 30, 2016		September 30, 2015
Results of operations:
Net interest income	$	773		$	754		$	723		3	%	7	%
Noninterest income	570			565			450			1		27
Total revenue	1,343			1,319			1,173			2		14
Noninterest expense	952			906			926			5		3
Pre-tax, pre-provision income ⁽¹⁾	391			413			247			(5	)	58
(Reversal of) provision for credit losses	73			(39		)	18			287		306
Income before income taxes and including
noncontrolling interests	318			452			229			(30	)	39
Income tax expense	97			129			62			(25	)	56
Net income including noncontrolling interests	221			323			167			(32	)	32
Deduct: Net loss from noncontrolling interests	39			11			21			255		86
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	260		$	334		$	188		(22	)	38

Balance sheet (end of period):
Total assets	$	151,099		$	147,972		$	151,666		2		—
Total securities	24,116			23,188			24,712			4		(2	)
Securities borrowed or purchased under resale agreements	21,906			20,363			30,530			8		(28	)
Total loans held for investment	79,249			81,045			78,358			(2	)	1
Core deposits ⁽²⁾	77,392			75,296			74,785			3		3
Total deposits	84,643			82,652			82,656			2		2
Securities loaned or sold under repurchase agreements	25,582			23,197			28,366			10		(10	)
Long-term debt	11,427			11,737			12,661			(3	)	(10	)
MUAH stockholders' equity	17,353			17,133			16,499			1		5

Balance sheet (period average):
Total assets	$	149,056		$	149,447		$	150,516		—		(1	)
Total securities	23,503			23,341			24,157			1		(3	)
Securities borrowed or purchased under resale agreements	20,668			24,030			30,750			(14	)	(33	)
Total loans held for investment	80,469			81,542			77,840			(1	)	3
Earning assets	136,051			137,198			138,504			(1	)	(2	)
Total deposits	84,194			83,621			82,482			1		2
Securities loaned or sold under repurchase agreements	23,872			25,338			29,120			(6	)	(18	)
MUAH stockholders' equity	17,311			16,980			16,139			2		7
Net interest margin ^{(3) (7)}	2.29		%	2.23		%	2.10		%
Net interest margin excluding MUSA ⁽⁸⁾	2.72		%	2.73		%	2.72		%

____________________________________

Refer to Exhibit 19 for footnote explanations.



	3

Summary of Third Quarter Results

Third Quarter Total Revenue

For the third quarter of 2016, total revenue (net interest income plus noninterest income) was $1.3 billion, up $24 million from the second quarter of 2016. Net interest income for the third quarter of 2016 was $773 million, up $19 million compared with the second quarter of 2016 due to an increase in the net interest margin. The net interest margin increased 6 basis points to 2.29%, reflecting higher yields on both securities and securities borrowed or purchased under resale agreements. Excluding MUSA for all periods, the net interest margin was 2.72% in the third quarter of 2016, essentially flat compared with the second quarter of 2016.

For the third quarter of 2016, noninterest income was $570 million, up $5 million compared with the second quarter of 2016, largely due to increases in investment banking and syndication fees which were partially offset by a decrease in fees from affiliates.

Compared with the third quarter of 2015, total revenue increased $170 million, substantially due to increases in interest income from trading assets, investment banking and syndication fees, fees from affiliates and trading account activities, partially offset by an increase in interest expense from securities loaned or sold under repurchase agreements.

Third Quarter Noninterest Expense

Noninterest expense for the third quarter of 2016 was $952 million, up $46 million compared with the second quarter of 2016 and up $26 million from the third quarter of 2015. The increase from the second quarter of 2016 was due primarily to increases in salaries and employee benefits and a low income housing impairment charge (included in Other, net) attributable to noncontrolling interests. The Company's share of the impairment charge was not significant.

Compared with the third quarter of 2015, the increase in noninterest expense was largely due to increases in regulatory assessments related to an increase in FDIC insurance expense, software expenses and the low income housing impairment charge attributable to noncontrolling interests.

The effective tax rate for the third quarter of 2016 was 31%, compared with an effective tax rate of 29% for the second quarter of 2016.



	4

Business Integration Initiative - Third Quarter Summary Impact⁽¹⁶⁾

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



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

Fees from affiliates - support services ⁽¹⁶⁾	$	150	$	147	$	138

Staff costs associated with fees from
affiliates - support services ⁽¹⁶⁾	$	139	$	137	$	128

__________________________

Refer to Exhibit 19 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 September 30, 2016, total assets were $151.1 billion, up $3.1 billion from the prior quarter. Increases in cash and cash equivalents, securities borrowed or purchased under resale agreements and trading account assets were partially offset by a decrease in loans held for investment. Total deposits increased $2.0 billion to $84.6 billion compared with the prior quarter-end, due to an increase in deposits within the Transaction Banking segment. Core deposits were up $2.1 billion, compared with the prior quarter-end.



	5

Credit Quality

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




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

Total (reversal of) provision for credit losses	$	73		$	(39	)	$	18
Net loans charged-off	124			97			11
Nonaccrual loans	719			632			419
Criticized loans held for investment ⁽¹⁴⁾	2,355			2,862			1,661

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.87		%	0.92		%	0.70		%
Nonaccrual loans	96.08			118.30			130.93
Allowance for credit losses to ⁽¹⁵⁾:
Total loans held for investment	1.09			1.13			0.88
Nonaccrual loans	119.97			144.55			164.59
Nonaccrual loans to total loans held for investment	0.91			0.78			0.54

____________________________________

Refer to Exhibit 19 for footnote explanations.

In the third quarter of 2016, the provision for credit losses was $73 million, compared with the reversal of provision of $39 million for the second quarter of 2016 and a provision of $18 million for the third quarter of 2015. The provision for credit losses reflects the impact of losses recorded in the commercial loan portfolio, including the oil and gas loan portfolio. Petroleum exploration and production ("PEP") loan commitments accounted for approximately 69% of our total oil and gas loan commitments at September 30, 2016, and 69% of PEP loan commitments were collateralized by oil and gas reserves.



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Criticized loans outstanding within the PEP portfolio declined $502 million during the third quarter of 2016 largely due to transfers to held for sale and charge-offs. The Company recorded net charge-offs of $124 million, substantially related to PEP loans. $45 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:



	As of
(Dollars in millions)	September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Petroleum Exploration and Production:
Loan commitments	$	3,565	$	4,529	$	5,519	$	5,768
Loans outstanding	1,802		2,434		3,080		2,943
Criticized commitments	1,791		2,541		2,701		2,156
Criticized outstanding	1,075		1,577		1,705		1,226
Allowance for credit losses	252		320		415		319
Allowance for loan losses	225		287		386		291

Capital

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



	September 30, 2016		June 30, 2016
Capital ratios:

Regulatory⁽⁹⁾:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(10) (11)}	14.18	%	13.58	%
Tier 1 risk-based capital ratio ^{(10) (11)}	14.18		13.58
Total risk-based capital ratio ^{(10) (11)}	15.89		15.44
Tier 1 leverage ratio ^{(10) (11)}	9.83		11.59

Other:
Tangible common equity ratio ⁽¹²⁾	9.45	%	9.53	%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(9) (10) (13)}	14.14		13.56

____________________________________

Refer to Exhibit 19 for footnote explanations.

The Company’s stockholders' equity was $17.4 billion at September 30, 2016, compared with $17.1 billion at June 30, 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 14.18%, 14.18% and 15.89%, respectively, at September 30, 2016. The tangible common equity ratio was 9.45% at September 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 14.14% at September 30, 2016.



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Non-GAAP Financial Measures

This press release includes a financial measure (net interest margin excluding MUSA) and 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 provide useful supplemental information regarding the Company's business results and 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 $151.1 billion at September 30, 2016. Its main subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. MUFG Union Bank, N.A. provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. As of September 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 Securities America Inc. is a registered securities broker-dealer which engages in capital markets origination transactions, private placements, collateralized financings, securities borrow and loan transactions, and domestic and foreign debt and equities securities transactions. 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.

###



	8

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															September 30, 2016 from
(Dollars in millions)	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2016		September 30, 2015
Results of operations:
Net interest income	$	773		$	754		$	724		$	730		$	723		3	%	7	%
Noninterest income	570			565			474			482			450			1		27
Total revenue	1,343			1,319			1,198			1,212			1,173			2		14
Noninterest expense	952			906			968			963			926			5		3
Pre-tax, pre-provision income ⁽¹⁾	391			413			230			249			247			(5	)	58
(Reversal of) provision for credit losses	73			(39		)	162			192			18			287		306
Income before income taxes and including
noncontrolling interests	318			452			68			57			229			(30	)	39
Income tax expense	97			129			18			(14		)	62			(25	)	56
Net income including noncontrolling interests	221			323			50			71			167			(32	)	32
Deduct: Net loss from noncontrolling interests	39			11			12			13			21			255		86
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	260		$	334		$	62		$	84		$	188		(22	)	38

Balance sheet (end of period):
Total assets	$	151,099		$	147,972		$	156,554		$	153,070		$	151,666		2		—
Total securities	24,116			23,188			23,699			24,517			24,712			4		(2	)
Securities borrowed or purchased under resale agreements	21,906			20,363			28,110			31,072			30,530			8		(28	)
Total loans held for investment	79,249			81,045			80,906			79,257			78,358			(2	)	1
Core deposits ⁽²⁾	77,392			75,296			74,882			76,094			74,785			3		3
Total deposits	84,643			82,652			89,460			84,300			82,656			2		2
Securities loaned or sold under repurchase agreements	25,582			23,197			27,211			29,141			28,366			10		(10	)
Long-term debt	11,427			11,737			13,068			13,648			12,661			(3	)	(10	)
MUAH stockholders' equity	17,353			17,133			16,684			16,378			16,499			1		5

Balance sheet (period average):
Total assets	$	149,056		$	149,447		$	154,704		$	154,470		$	150,516		—		(1	)
Total securities	23,503			23,341			23,550			24,366			24,157			1		(3	)
Securities borrowed or purchased under resale agreements	20,668			24,030			31,698			32,341			30,750			(14	)	(33	)
Total loans held for investment	80,469			81,542			80,083			79,501			77,840			(1	)	3
Earning assets	136,051			137,198			142,153			142,179			138,504			(1	)	(2	)
Total deposits	84,194			83,621			83,968			83,996			82,482			1		2
Securities loaned or sold under repurchase agreements	23,872			25,338			31,204			30,366			29,120			(6	)	(18	)
MUAH stockholders' equity	17,311			16,980			16,692			16,639			16,139			2		7

Performance ratios:
Return on average assets ⁽³⁾	0.70		%	0.89		%	0.16		%	0.22		%	0.50		%
Return on average MUAH stockholders' equity ⁽³⁾	6.03			7.87			1.45			2.03			4.66
Return on average MUAH tangible common equity ^{(3) (4)}	7.60			9.92			1.94			2.72			6.10
Efficiency ratio ⁽⁵⁾	70.88			68.67			80.90			79.45			78.95
Adjusted efficiency ratio ⁽⁶⁾	62.46			62.27			73.72			70.33			72.17
Net interest margin ^{(3) (7)}	2.29			2.23			2.06			2.07			2.10

Performance ratios excluding MUSA ⁽⁸⁾:
Return on average assets ⁽³⁾	0.78		%	1.06		%	0.18		%	0.26		%	0.65		%
Return on average MUAH stockholders' equity ⁽³⁾	5.65			7.74			1.36			1.91			4.83
Return on average tangible common equity ^{(3) (4)}	7.22			9.86			1.85			2.61			6.36
Efficiency ratio ⁽⁵⁾	70.99			68.02			80.11			79.02			77.45
Adjusted efficiency ratio ⁽⁶⁾	61.44			60.80			72.14			69.07			70.00
Net interest margin ^{(3) (7)}	2.72			2.73			2.65			2.68			2.72

Capital ratios:

Regulatory ⁽⁹⁾:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(10) (11)}	14.18		%	13.58		%	13.33		%	13.63		%	13.84		%
Tier 1 risk-based capital ratio ^{(10) (11)}	14.18			13.58			13.33			13.64			13.84
Total risk-based capital ratio ^{(10) (11)}	15.89			15.44			15.32			15.56			15.60
Tier 1 leverage ratio ^{(10) (11)}	9.83			11.59			11.41			11.40			11.58

Other:
Tangible common equity ratio ⁽¹²⁾	9.45		%	9.53		%	8.70		%	8.69		%	8.84		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(9) (10) (13)}	14.14			13.56			13.31			13.46			13.79

___________________________________________

Refer to Exhibit 19 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, 2016 from
(Dollars in millions)	2016			2015			September 30, 2015
Results of operations:
Net interest income	$	2,251		$	2,162			4	%
Noninterest income	1,609			1,368				18
Total revenue	3,860			3,530				9
Noninterest expense	2,826			2,784				2
Pre-tax, pre-provision income ⁽¹⁾	1,034			746				39
Provision for credit losses	196			35				460
Income before income taxes and including
noncontrolling interests	838			711				18
Income tax expense	244			183				33
Net income including noncontrolling interests	594			528				13
Deduct: Net loss from noncontrolling interests	62			32				94
Net income attributable to MUAH	$	656		$	560			17

Balance sheet (end of period):
Total assets	$	151,099		$	151,666			—
Total securities	24,116			24,712				(2	)
Securities borrowed or purchased under resale agreements	21,906			30,530				(28	)
Total loans held for investment	79,249			78,358				1
Core deposits ⁽²⁾	77,392			74,785				3
Total deposits	84,643			82,656				2
Securities loaned or sold under repurchase agreements	25,582			28,366				(10	)
Long-term debt	11,427			12,661				(10	)
MUAH stockholders' equity	17,353			16,499				5

Balance sheet (period average):
Total assets	$	150,996		$	151,734			—
Total securities	23,465			23,100				2
Securities borrowed or purchased under resale agreements	25,448			32,558				(22	)
Total loans held for investment	80,698			78,415				3
Earning assets	138,459			139,671				(1	)
Total deposits	83,928			82,899				1
Securities loaned or sold under repurchase agreements	26,794			31,781				(16	)
MUAH stockholders' equity	16,942			15,935				6

Performance ratios:
Return on average assets ⁽³⁾	0.58		%	0.49		%
Return on average MUAH stockholders' equity ⁽³⁾	5.15			4.67
Return on average MUAH tangible common equity^{(3) (4)}	6.54			6.14
Efficiency ratio ⁽⁵⁾	73.23			78.88
Adjusted efficiency ratio ⁽⁶⁾	65.90			71.70
Net interest margin ^{(3) (7)}	2.19			2.08

Performance ratios excluding MUSA ⁽⁸⁾:
Return on average assets ⁽³⁾	0.67		%	0.61		%
Return on average MUAH stockholders' equity ⁽³⁾	4.94			4.57
Return on average tangible common equity ^{(3) (4)}	6.36			6.06
Efficiency ratio ⁽⁵⁾	72.84			78.39
Adjusted efficiency ratio ⁽⁶⁾	64.61			70.40
Net interest margin ^{(3) (7)}	2.70			2.72

___________________________________________

Refer to Exhibit 19 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, 2016 from
(Dollars in millions)	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2016		September 30, 2015

Credit Data:
(Reversal of) provision for loan losses	$	68		$	(36	)	$	158		$	168		$	23		289	%	196	%
(Reversal of) provision for losses on unfunded credit commitments	5			(3		)	4			24			(5		)	267		200
Total (reversal of) provision for credit losses	$	73		$	(39	)	$	162		$	192		$	18		287		306

Net loans charged-off (recovered)	$	124		$	97		$	4		$	(6	)	$	11		28		nm
Nonperforming assets	724			648			974			573			434			12		67
Criticized loans held for investment ⁽¹⁴⁾	2,355			2,862			3,083			2,472			1,661			(18	)	42

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.87		%	0.92		%	1.09		%	0.91		%	0.70		%
Nonaccrual loans	96.08			118.30			92.17			130.86			130.93
Allowance for credit losses to ⁽¹⁵⁾:
Total loans held for investment	1.09			1.13			1.30			1.12			0.88
Nonaccrual loans	119.97			144.55			109.86			160.74			164.59
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	0.61			0.48			0.02			(0.03		)	0.06
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.91			0.80			1.20			0.72			0.55
Nonperforming assets to total assets	0.48			0.44			0.62			0.37			0.29
Nonaccrual loans to total loans held for investment	0.91			0.78			1.18			0.70			0.54


	As of and for the Nine Months Ended						Percent Change
	September 30,			September 30,			to September 30, 2016
(Dollars in millions)	2016			2015			from September 30, 2015
Credit Data:
Provision for loan losses	$	190		$	45		322%
(Reversal of) provision for losses on unfunded credit commitments	6			(10		)	160
Total provision for credit losses	$	196		$	35		460%

Net loans charged-off	$	225		$	34		nm
Credit Ratios:
Net loans charged-off to average total loans held for investment⁽³⁾	0.37		%	0.06		%

________________________________________

Refer to Exhibit 19 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, 2016		June 30, 2016			March 31, 2016		December 31, 2015			September 30, 2015
Interest Income
	Loans		$	711	$	719		$	706	$	705		$	696
	Securities		122		114			110		124			116
	Securities borrowed or purchased under resale
	agreements		47		44			50		34			28
	Trading assets		50		38			22		13			15
	Other		6		4			6		2			5
		Total interest income	936		919			894		878			860

Interest Expense
	Deposits		49		49			49		50			48
	Commercial paper and other short-term borrowings		7		7			3		2			4
	Long-term debt		57		63			73		70			63
	Securities loaned or sold under repurchase agreements		36		31			32		18			12
	Trading liabilities		14		15			13		8			10
		Total interest expense	163		165			170		148			137

Net Interest Income			773		754			724		730			723
	(Reversal of) provision for credit losses		73		(39		)	162		192			18
		Net interest income after (reversal of) provision for
		credit losses	700		793			562		538			705

Noninterest Income
	Service charges on deposit accounts		48		46			49		48			49
	Trust and investment management fees		29		30			32		29			27
	Trading account activities		25		40			28		24			7
	Securities gains, net		23		19			13		6			6
	Credit facility fees		27		28			27		29			27
	Brokerage commissions and fees		15		25			19		16			17
	Card processing fees, net		10		9			9		8			8
	Investment banking and syndication fees		113		79			61		62			66
	Fees from affiliates ⁽¹⁶⁾		222		258			212		210			189
	Other, net		58		31			24		50			54
		Total noninterest income	570		565			474		482			450

Noninterest Expense
	Salaries and employee benefits		592		572			595		604			596
	Net occupancy and equipment		82		79			81		88			83
	Professional and outside services		84		81			105		87			82
	Software		39		37			37		34			29
	Regulatory assessments		22		14			14		13			13
	Intangible asset amortization		7		6			7		10			10
	Other		126		117			129		127			113
		Total noninterest expense	952		906			968		963			926

	Income before income taxes and including
	noncontrolling interests		318		452			68		57			229
	Income tax expense		97		129			18		(14		)	62
Net Income including Noncontrolling Interests			221		323			50		71			167
	Deduct: Net loss from noncontrolling interests		39		11			12		13			21
Net Income attributable to MUAH			$	260	$	334		$	62	$	84		$	188

____________________________________________

Refer to Exhibit 19 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, 2016		September 30, 2015
Interest Income
	Loans		$	2,136	$	2,092
	Securities		346		339
	Securities borrowed or purchased under resale agreements		141		78
	Trading assets		110		40
	Other		16		10
		Total interest income	2,749		2,559

Interest Expense
	Deposits		147		150
	Commercial paper and other short-term borrowings		17		11
	Long-term debt		193		180
	Securities loaned or sold under repurchase agreements		99		34
	Trading liabilities		42		22
		Total interest expense	498		397

Net Interest Income			2,251		2,162
	Provision for credit losses		196		35
		Net interest income after provision for credit losses	2,055		2,127

Noninterest Income
	Service charges on deposit accounts		143		147
	Trust and investment management fees		91		82
	Trading account activities		93		38
	Securities gains, net		55		14
	Credit facility fees		82		88
	Brokerage commissions and fees		59		63
	Card processing fees, net		28		25
	Investment banking and syndication fees		253		257
	Fees from affiliates ⁽¹⁶⁾		692		553
	Other, net		113		101
		Total noninterest income	1,609		1,368

Noninterest Expense
	Salaries and employee benefits		1,759		1,810
	Net occupancy and equipment		242		247
	Professional and outside services		270		231
	Software		113		86
	Regulatory assessments		50		40
	Intangible asset amortization		20		32
	Other		372		338
		Total noninterest expense	2,826		2,784

	Income before income taxes and including
	noncontrolling interests		838		711
	Income tax expense		244		183
Net Income including Noncontrolling Interests			594		528
	Deduct: Net loss from noncontrolling interests		62		32
Net Income attributable to MUAH			$	656	$	560

___________________________________________

Refer to Exhibit 19 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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Assets
Cash and due from banks				$	1,837		$	1,766		$	1,813		$	2,058		$	1,824
Interest bearing deposits in banks				3,537			2,306			6,747			2,749			2,993
Federal funds sold				—			10			—			—			4
		Total cash and cash equivalents		5,374			4,082			8,560			4,807			4,821
Securities borrowed or purchased under resale agreements				21,906			20,363			28,110			31,072			30,530
Trading account assets				9,405			8,427			5,629			3,734			3,592
Securities available for sale				13,728			12,929			13,094			14,359			14,371
Securities held to maturity				10,388			10,259			10,605			10,158			10,341
Loans held for investment				79,249			81,045			80,906			79,257			78,358
	Allowance for loan losses			(691		)	(748		)	(881		)	(723		)	(549		)
		Loans held for investment, net		78,558			80,297			80,025			78,534			77,809
Premises and equipment, net				591			599			666			644			638
Goodwill				3,225			3,225			3,225			3,225			3,225
Other assets				7,924			7,791			6,640			6,537			6,339
			Total assets	$	151,099		$	147,972		$	156,554		$	153,070		$	151,666

Liabilities
Deposits:
	Noninterest bearing			$	34,186		$	32,861		$	38,556		$	32,463		$	31,869
	Interest bearing			50,457			49,791			50,904			51,837			50,787
		Total deposits		84,643			82,652			89,460			84,300			82,656
Securities loaned or sold under repurchase agreements				25,582			23,197			27,211			29,141			28,366
Commercial paper and other short-term borrowings				5,865			7,137			3,179			3,425			4,771
Long-term debt				11,427			11,737			13,068			13,648			12,661
Trading account liabilities				3,328			3,053			4,375			3,712			4,155
Other liabilities				2,742			2,863			2,367			2,251			2,327
			Total liabilities	133,587			130,639			139,660			136,477			134,936

Equity
MUAH stockholders' equity:
	Common stock, par value $1 per share:
		Authorized 300,000,000 shares; 144,322,280 shares issued and outstanding as of September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015		144			144			144			144			144
	Additional paid-in capital			7,876			7,870			7,878			7,868			7,849
	Retained earnings			9,764			9,509			9,178			9,116			9,033
	Accumulated other comprehensive loss			(431		)	(390		)	(516		)	(750		)	(527		)
			Total MUAH stockholders' equity	17,353			17,133			16,684			16,378			16,499
Noncontrolling interests				159			200			210			215			231
			Total equity	17,512			17,333			16,894			16,593			16,730
			Total liabilities and equity	$	151,099		$	147,972		$	156,554		$	153,070		$	151,666

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	September 30, 2016							June 30, 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: ⁽¹⁷⁾
Commercial and industrial	$	29,008		$	235	3.22	%	$	30,842		$	245	3.20	%
Commercial mortgage	15,048			141		3.75		15,095			138		3.66
Construction	2,242			23		4.09		2,211			22		3.92
Lease financing	1,851			15		3.26		1,858			17		3.55
Residential mortgage	28,572			234		3.28		27,770			230		3.31
Home equity and other consumer loans	3,480			44		5.04		3,473			43		4.96
Loans, before purchased credit-impaired loans	80,201			692		3.44		81,249			695		3.42
Purchased credit-impaired loans	268			22		32.11		293			27		36.86
Total loans held for investment	80,469			714		3.54		81,542			722		3.54
Securities	23,503			127		2.16		23,341			119		2.04
Securities borrowed or purchased under resale agreements	20,668			47		0.90		24,030			44		0.73
Interest bearing deposits in banks	3,522			4		0.50		1,683			3		0.55
Federal funds sold	7			—		0.71		11			—		0.53
Trading account assets	7,503			50		2.66		6,384			38		2.40
Other earning assets	379			2		2.34		207			1		2.53
Total earning assets	136,051			944		2.77		137,198			927		2.70
Allowance for loan losses	(757		)					(881		)
Cash and due from banks	1,864							1,811
Premises and equipment, net	588							645
Other assets ⁽¹⁸⁾	11,310							10,674
Total assets	$	149,056						$	149,447
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,688		29		0.31		$	37,517		28		0.30
Savings	5,826			1		0.04		5,742			1		0.04
Time	6,700			19		1.13		7,519			20		1.07
Total interest bearing deposits	50,214			49		0.39		50,778			49		0.39
Commercial paper and other short-term borrowings	6,281			7		0.44		5,319			7		0.49
Securities loaned or sold under repurchase agreements	23,872			36		0.60		25,338			31		0.49
Long-term debt	11,928			57		1.92		12,572			63		2.01
Total borrowed funds	42,081			100		0.95		43,229			101		0.93
Trading account liabilities	2,549			14		2.20		2,836			15		2.09
Total interest bearing liabilities	94,844			163		0.69		96,843			165		0.67
Noninterest bearing deposits	33,980							32,843
Other liabilities ⁽¹⁹⁾	2,733							2,581
Total liabilities	131,557							132,267
Equity
MUAH stockholders' equity	17,311							16,980
Noncontrolling interests	188							200
Total equity	17,499							17,180
Total liabilities and equity	$	149,056						$	149,447

Net interest income/spread (taxable-equivalent basis)				781		2.08	%				762		2.03	%
Impact of noninterest bearing deposits						0.18							0.17
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.29							2.23
Less: taxable-equivalent adjustment				8							8
Net interest income				$	773						$	754

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	September 30, 2016							September 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: ⁽¹⁷⁾
Commercial and industrial	$	29,008		$	235	3.22	%	$	28,787		$	225	3.10	%
Commercial mortgage	15,048			141		3.75		13,745			129		3.75
Construction	2,242			23		4.09		2,104			20		3.84
Lease financing	1,851			15		3.26		1,891			16		3.43
Residential mortgage	28,572			234		3.28		27,783			237		3.42
Home equity and other consumer loans	3,480			44		5.04		3,117			35		4.43
Loans, before purchased credit-impaired loans	80,201			692		3.44		77,427			662		3.41
Purchased credit-impaired loans	268			22		32.11		413			36		34.49
Total loans held for investment	80,469			714		3.54		77,840			698		3.58
Securities	23,503			127		2.16		24,157			122		2.00
Securities borrowed or purchased under resale agreements	20,668			47		0.90		30,750			27		0.35
Interest bearing deposits in banks	3,522			4		0.50		2,274			1		0.22
Federal funds sold	7			—		0.71		19			—		0.28
Trading account assets	7,503			50		2.66		2,979			15		1.99
Other earning assets	379			2		2.34		485			4		3.20
Total earning assets	136,051			944		2.77		138,504			867		2.49
Allowance for loan losses	(757		)					(541		)
Cash and due from banks	1,864							1,905
Premises and equipment, net	588							638
Other assets ⁽¹⁸⁾	11,310							10,010
Total assets	$	149,056						$	150,516
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,688		29		0.31		$	37,531		27		0.29
Savings	5,826			1		0.04		5,687			1		0.06
Time	6,700			19		1.13		8,058			20		1.01
Total interest bearing deposits	50,214			49		0.39		51,276			48		0.38
Commercial paper and other short-term borrowings	6,281			7		0.44		5,828			4		0.23
Securities loaned or sold under repurchase agreements	23,872			36		0.60		29,120			12		0.17
Long-term debt	11,928			57		1.92		10,625			63		2.35
Total borrowed funds	42,081			100		0.95		45,573			79		0.69
Trading account liabilities	2,549			14		2.20		3,415			10		1.20
Total interest bearing liabilities	94,844			163		0.69		100,264			137		0.54
Noninterest bearing deposits	33,980							31,206
Other liabilities ⁽¹⁹⁾	2,733							2,703
Total liabilities	131,557							134,173
Equity
MUAH stockholders' equity	17,311							16,139
Noncontrolling interests	188							204
Total equity	17,499							16,343
Total liabilities and equity	$	149,056						$	150,516

Net interest income/spread (taxable-equivalent basis)				781		2.08	%				730		1.95	%
Impact of noninterest bearing deposits						0.18							0.13
Impact of other noninterest bearing sources						0.03							0.02
Net interest margin						2.29							2.10
Less: taxable-equivalent adjustment				8							7
Net interest income				$	773						$	723

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Nine Months Ended
	September 30, 2016							September 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: ⁽¹⁷⁾
Commercial and industrial	$	30,090		$	752	3.34	%	$	28,761		$	666	3.09	%
Commercial mortgage	14,877			388		3.48		13,835			380		3.66
Construction	2,242			60		3.54		2,001			55		3.68
Lease financing	1,866			47		3.32		1,935			48		3.34
Residential mortgage	27,905			695		3.32		28,312			723		3.41
Home equity and other consumer loans	3,423			127		4.95		3,106			100		4.32
Loans, before purchased credit-impaired loans	80,403			2,069		3.43		77,950			1,972		3.38
Purchased credit-impaired loans	295			74		33.30		465			124		35.55
Total loans held for investment	80,698			2,143		3.54		78,415			2,096		3.57
Securities	23,465			361		2.05		23,100			353		2.04
Securities borrowed or purchased under resale agreements	25,448			141		0.74		32,558			78		0.32
Interest bearing deposits in banks	2,542			10		0.52		2,570			5		0.23
Federal funds sold	20			—		0.55		11			—		0.28
Trading account assets	5,952			110		2.47		2,727			40		1.96
Other earning assets	334			6		2.46		290			5		2.44
Total earning assets	138,459			2,771		2.67		139,671			2,577		2.46
Allowance for loan losses	(789		)					(541		)
Cash and due from banks	1,856							1,920
Premises and equipment, net	625							631
Other assets ⁽¹⁸⁾	10,845							10,053
Total assets	$	150,996						$	151,734
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	37,853		86		0.30		$	38,402		87		0.30
Savings	5,761			2		0.05		5,609			2		0.06
Time	7,263			59		1.09		8,519			61		0.96
Total interest bearing deposits	50,877			147		0.39		52,530			150		0.38
Commercial paper and other short-term borrowings	4,922			17		0.45		5,571			11		0.26
Securities loaned or sold under repurchase agreements	26,794			99		0.49		31,781			34		0.15
Long-term debt	12,761			193		2.02		10,064			180		2.38
Total borrowed funds	44,477			309		0.92		47,416			225		0.63
Trading account liabilities	2,699			42		2.08		2,340			22		1.27
Total interest bearing liabilities	98,053			498		0.68		102,286			397		0.52
Noninterest bearing deposits	33,051							30,369
Other liabilities ⁽¹⁹⁾	2,763							2,928
Total liabilities	133,867							135,583
Equity
MUAH stockholders' equity	16,942							15,935
Noncontrolling interests	187							216
Total equity	17,129							16,151
Total liabilities and equity	$	150,996						$	151,734

Net interest income/spread (taxable-equivalent basis)				2,273		1.99	%				2,180		1.94	%
Impact of noninterest bearing deposits						0.17							0.12
Impact of other noninterest bearing sources						0.03							0.02
Net interest margin						2.19							2.08
Less: taxable-equivalent adjustment				22							18
Net interest income				$	2,251						$	2,162

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 9

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



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

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	27,618	$	29,789	$	30,681	$	30,214	$	28,987
		Commercial mortgage			14,937		15,144		14,920		13,904		13,943
		Construction			2,257		2,255		2,251		2,297		2,120
		Lease financing			1,840		1,878		1,870		1,911		1,940
			Total commercial portfolio		46,652		49,066		49,722		48,326		46,990

		Residential mortgage			28,781		28,244		27,495		27,344		27,856
		Home equity and other consumer loans			3,559		3,459		3,385		3,251		3,124
			Total consumer portfolio		32,340		31,703		30,880		30,595		30,980
				Loans held for investment, before purchased credit-impaired loans	78,992		80,769		80,602		78,921		77,970
		Purchased credit-impaired loans			257		276		304		336		388

				Total loans held for investment	$	79,249	$	81,045	$	80,906	$	79,257	$	78,358

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	486	$	396	$	702	$	284	$	138
		Commercial mortgage			31		26		30		37		40
			Total commercial portfolio		517		422		732		321		178

		Residential mortgage			172		177		186		190		201
		Home equity and other consumer loans			26		28		32		35		32
			Total consumer portfolio		198		205		218		225		233

				Nonaccrual loans, before purchased credit-impaired loans	715		627		950		546		411
		Purchased credit-impaired loans			4		5		6		6		8
				Total nonaccrual loans	719		632		956		552		419

	OREO				5		16		18		21		15

				Total nonperforming assets	$	724	$	648	$	974	$	573	$	434

	Loans 90 days or more past due and still accruing ⁽²⁰⁾				$	10	$	2	$	6	$	2	$	4

__________________________________________

Refer to Exhibit 19 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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015

Analysis of Allowance for Credit Losses
Allowance for loan losses, beginning of period	$	748		$	881		$	723		$	549		$	538
(Reversal of) provision for loan losses	68			(36		)	158			168			23
Other	(1		)	—			4			—			(1		)
Loans charged-off:
Commercial and industrial	(66		)	(46		)	(8		)	—			(11		)
Commercial and industrial - transfer to held for sale	(60		)	(51		)	—			—			—
Commercial mortgage	—			—			—			—			—
Total commercial portfolio	(126		)	(97		)	(8		)	—			(11		)
Residential mortgage	2			—			1			—			—
Home equity and other consumer loans	(4		)	(2		)	(2		)	(1		)	(1		)
Total consumer portfolio	(2		)	(2		)	(1		)	(1		)	(1		)
Purchased credit-impaired loans	—			—			—			(1		)	(3		)
Total loans charged-off	(128		)	(99		)	(9		)	(2		)	(15		)
Recoveries of loans previously charged-off:
Commercial and industrial	2			2			1			7			2
Commercial mortgage	1			—			3			—			1
Total commercial portfolio	3			2			4			7			3
Home equity and other consumer loans	—			—			1			—			1
Total consumer portfolio	—			—			1			—			1
Purchased credit-impaired loans	1			—			—			1			—
Total recoveries of loans previously charged-off	4			2			5			8			4
Net loans (charged-off) recovered	(124		)	(97		)	(4		)	6			(11		)
Ending balance of allowance for loan losses	691			748			881			723			549
Allowance for losses on unfunded credit commitments	171			166			169			165			141
Total allowance for credit losses	$	862		$	914		$	1,050		$	888		$	690



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			September 30, 2016				June 30, 2016				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		June 30, 2016			June 30, 2016
Asset Liability Management securities:
U.S. Treasury			$	1,638	$	1,642	$	155	$	159	$	1,483		nm
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		6,284		6,321		6,009		6,052		269			4	%
	Privately issued		297		299		245		248		51			21
Privately issued - commercial mortgage-backed securities			1,020		1,058		1,474		1,527		(469		)	(31	)
Collateralized loan obligations			2,713		2,709		3,267		3,238		(529		)	(16	)
Other			7		7		7		7		—			—
		Asset Liability Management securities	11,959		12,036		11,157		11,231		805			7
Other debt securities:
Direct bank purchase bonds			1,543		1,568		1,547		1,575		(7		)	—
Other			114		116		114		116		—			—
Equity securities			6		8		6		7		1			14
		Total securities available for sale	$	13,622	$	13,728	$	12,824	$	12,929	$	799		6	%

Securities Held to Maturity

			September 30, 2016				June 30, 2016				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²¹⁾		Value		Amount ⁽²¹⁾		Value		June 30, 2016			June 30, 2016
U.S. Treasury			$	491	$	502	$	490	$	505	$	1		—	%
U.S. government agency and government-sponsored agencies-residential mortgage-backed securities			8,277		8,441		8,126		8,329		151			2
U.S. government agency and government-sponsored agencies-commercial mortgage-backed securities			1,620		1,706		1,643		1,739		(23		)	(1	)
		Total securities held to maturity	$	10,388	$	10,649	$	10,259	$	10,573	$	129		1	%

___________________________________________

Refer to Exhibit 19 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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015

Net income attributable to MUAH	$	260		$	334		$	62		$	84		$	188
Add: intangible asset amortization, net of tax	4			4			4			6			6
Net income attributable to MUAH, excluding intangible asset amortization (a)	$	264		$	338		$	66		$	90		$	194

Average MUAH stockholders' equity	$	17,311		$	16,980		$	16,692		$	16,639		$	16,139
Less: Goodwill	3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except mortgage servicing rights (MSRs)	193			179			186			194			208
Less: Deferred tax liabilities related to goodwill and intangible assets	(50		)	(48		)	(44		)	(39		)	(40		)
Average tangible common equity (b)	$	13,943		$	13,624		$	13,325		$	13,259		$	12,746
Return on average MUAH tangible common equity ^{(3) (4)}(a)/(b)	7.60		%	9.92		%	1.94		%	2.72		%	6.10		%

Noninterest expense	$	952		$	906		$	968		$	963		$	926
Less: Staff costs associated with fees from affiliates - support services	139			137			139			138			128
Less: Foreclosed asset expense and other credit costs	1			—			(1		)	—			3
Less: Productivity initiative costs	18			4			12			41			3
Less: Low income housing credit (LIHC) investment amortization expense	2			2			1			6			5
Less: Expenses of the LIHC consolidated VIEs	40			11			12			13			14
Less: Merger and business integration costs	3			5			5			6			8
Less: Net adjustments related to privatization transaction	4			5			5			8			8
Less: Intangible asset amortization	3			2			3			3			2
Less: Contract termination fee	(2		)	—			—			—			—
Noninterest expense, as adjusted (c)	$	744		$	740		$	792		$	748		$	755

Total revenue	$	1,343		$	1,319		$	1,198		$	1,212		$	1,173
Add: Net interest income taxable-equivalent adjustment	8			8			6			7			7
Less: Fees from affiliates - support services	150			147			149			149			138
Less: Accretion related to privatization-related fair value adjustments	2			3			5			2			3
Less: Other credit costs	4			(9		)	(13		)	4			(8		)
Less: Impairment on private equity investments	3			—			(12		)	1			—
Total revenue, as adjusted (d)	$	1,192		$	1,186		$	1,075		$	1,063		$	1,047
Adjusted efficiency ratio (c)/(d) ⁽⁶⁾	62.46		%	62.27		%	73.72		%	70.33		%	72.17		%

____________________________________________

Refer to Exhibit 19 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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Total MUAH stockholders' equity		$	17,353		$	17,133		$	16,684		$	16,378		$	16,499
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		224			175			182			190			199
Less: Deferred tax liabilities related to goodwill and intangible assets		(52		)	(48		)	(49		)	(39		)	(39		)
	Tangible common equity (e)	$	13,956		$	13,781		$	13,326		$	13,002		$	13,114
Total assets		$	151,099		$	147,972		$	156,554		$	153,070		$	151,666
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		224			175			182			190			199
Less: Deferred tax liabilities related to goodwill and intangible assets		(52		)	(48		)	(49		)	(39		)	(39		)
	Tangible assets (f)	$	147,702		$	144,620		$	153,196		$	149,694		$	148,281
Tangible common equity ratio (e)/(f) ⁽¹²⁾		9.45		%	9.53		%	8.70		%	8.69		%	8.84		%

Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (g)		$	14,426		$	13,233		$	12,936		$	12,920		$	12,834
Other		(55		)	(38		)	(40		)	(61		)	(67		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (h)	$	14,371		$	13,195		$	12,896		$	12,859		$	12,767
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (i)		$	101,763		$	97,412		$	97,011		$	94,775		$	92,729
Add: Adjustments		(142		)	(118		)	(122		)	756			(160		)
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased-in) (j)	$	101,621		$	97,294		$	96,889		$	95,531		$	92,569
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) (h)/(j) ^{(9) (10) (13)}		14.14		%	13.56		%	13.31		%	13.46		%	13.79		%

____________________________________________

Refer to Exhibit 19 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)		2016			2015

Net income attributable to MUAH		$	656		$	560
Add: Intangible asset amortization, net of tax		12			20
Net income attributable to MUAH, excluding intangible asset amortization (a)		$	668		$	580

Average MUAH stockholders' equity		$	16,942		$	15,935
Less: Goodwill		3,225			3,225
Less: Intangible assets, except MSRs		186			218
Less: Deferred tax liabilities related to goodwill and intangible assets		(47		)	(55		)
Average tangible common equity (b)		$	13,578		$	12,547
Return on average MUAH tangible common equity ^{(3) (4)}(a)/(b)		6.54		%	6.14		%

Noninterest expense		$	2,826		$	2,784
Less: Staff costs associated with fees from affiliates - support services		415			363
Less: Foreclosed asset expense and other credit costs		—			4
Less: Productivity initiative costs		34			33
Less: Low income housing credit (LIHC) investment amortization expense		5			9
Less: Expenses of the LIHC consolidated VIEs		63			32
Less: Merger and business integration costs		13			23
Less: Net adjustments related to privatization transaction		14			23
Less: Intangible asset amortization		8			10
Less: Contract termination fee		(2		)	23
	Noninterest expense, as adjusted (c)	$	2,276		$	2,264

Total revenue		$	3,860		$	3,530
Add: Net interest income taxable-equivalent adjustment		22			18
Less: Fees from affiliates - support services		446			393
Less: Accretion related to privatization-related fair value adjustments		10			6
Less: Other credit costs		(18		)	(4		)
Less: Impairment on private equity investments		(9		)	(5		)
	Total revenue, as adjusted (d)	$	3,453		$	3,158
Adjusted efficiency ratio (c)/(d) ⁽⁶⁾		65.90		%	71.70		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 15

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, 2016			June 30, 2016			March 31, 2016				December 31, 2015				September 30, 2015
Performance ratios excluding MUSA ⁽⁸⁾:
Net income attributable to MUAH		$	260		$	334		$	62			$	84			$	188
Less: Net income attributable to MUSA		26			19			5				8				(1		)
MUAH net income, excluding MUSA (k)		234			315			57				76				189

Average total assets		$	149,056		$	149,447		$	154,704			$	154,470			$	150,516
Less: Average total assets attributable to MUSA		28,696			30,395			36,088				35,792				34,241
Average total assets excluding MUSA (l)		$	120,360		$	119,052		$	118,616			$	118,678			$	116,275
Return on average assets, excluding MUSA ⁽³⁾(k)/(l)		0.78		%	1.06		%	0.18		%		0.26		%		0.65		%

Average MUAH stockholders' equity		$	17,311		$	16,980		$	16,692			$	16,639			$	16,139
Less: Average MUSA stockholder's equity		671			678			633				627				426
Average MUAH stockholders' equity, excluding MUSA (m)		16,640			16,302			16,059				16,012				15,713
Return on average MUAH stockholders' equity, excluding MUSA ⁽³⁾(k)/(m)		5.65		%	7.74		%	1.36		%		1.91		%		4.83		%

Net income attributable to MUAH, excluding intangible asset amortization		$	264		$	338		$	66			$	90			$	194
Less: Net income attributable to MUSA		26			19			5				8				(1		)
Net income attributable to MUAH excluding MUSA and intangible asset amortization (n)		$	238		$	319		$	61			$	82			$	195

Average MUAH tangible common equity		$	13,943		$	13,624		$	13,325			$	13,259			$	12,746
Less: Average MUSA stockholder's equity		671			678			633				627				426
Average tangible common equity, excluding MUSA (o)		$	13,272		$	12,946		$	12,692			$	12,632			$	12,320
Return on average tangible common equity, excluding MUSA ^{(3) (4)} (n)/(o)		7.22		%	9.86		%	1.85		%		2.61		%		6.36		%

Noninterest expense		$	952		$	906		$	968			$	963			$	926
Less: Noninterest expense attributable to MUSA		99			92			87				70				71
Noninterest expense, excluding MUSA (p)		$	853		$	814		$	881			$	893			$	855

Total revenue		$	1,343		$	1,319		$	1,198			$	1,212			$	1,173
Less: Total revenue attributable to MUSA		142			123			96				82				69
Total revenue, excluding MUSA (q)		$	1,201		$	1,196		$	1,102			$	1,130			$	1,104
Efficiency ratio, excluding MUSA ⁽⁵⁾ (p)/(q)		70.99		%	68.02		%	80.11		%		79.02		%		77.45		%

Noninterest expense, as adjusted		$	744		$	740		$	792			$	748			$	755
Less: noninterest expense attributable to MUSA		99			92			87				70				71
	Noninterest expense, as adjusted excluding MUSA (r)	$	645		$	648		$	705			$	678			$	684

Total revenue, as adjusted		$	1,192		$	1,186		$	1,075			$	1,063			$	1,047
Less: revenue attributable to MUSA		142			123			96				82				69
	Total revenue, as adjusted excluding MUSA (s)	$	1,050		$	1,063		$	979		—	$	981		—	$	978
Adjusted efficiency ratio excluding MUSA ⁽⁶⁾(r)/(s)		61.44		%	60.80		%	72.14		%		69.07		%		70.00		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 16

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		As of and for the Nine Months Ended
(Dollars in millions)		September 30, 2016			September 30, 2015
Performance ratios excluding MUSA ⁽⁸⁾:
Net income attributable to MUAH		$	656		$	560
Less: Net income attributable to MUSA		50			27
MUAH net income, excluding MUSA (k)		606			533

Average total assets		$	150,996		$	151,734
Less: Average total assets attributable to MUSA		31,715			35,672
Average total assets excluding MUSA (l)		$	119,281		$	116,062
Return on average assets, excluding MUSA ⁽³⁾(k)/(l)		0.67		%	0.61		%

Average MUAH stockholders' equity		$	16,942		$	15,935
Less: Average MUSA stockholder's equity		661			416
Average MUAH stockholders' equity, excluding MUSA (m)		16,281			15,519
Return on average MUAH stockholders' equity, excluding MUSA ⁽³⁾(k)/(m)		4.94		%	4.57		%

Net income attributable to MUAH, excluding intangible asset amortization		$	668		$	580
Less: Net income attributable to MUSA		50			27
Net income attributable to MUAH excluding MUSA and intangible asset amortization (n)		$	618		$	553

Average tangible common equity		$	13,578		$	12,547
Less: Average MUSA stockholder's equity		661			416
Average tangible common equity, excluding MUSA (o)		$	12,917		$	12,131
Return on average tangible common equity, excluding MUSA ^{(3) (4)}(n)/(o)		6.36		%	6.06		%

Noninterest expense		$	2,826		$	2,784
Less: Noninterest expense attributable to MUSA		278			245
Noninterest expense, excluding MUSA (p)		$	2,548		$	2,539

Total revenue		$	3,860		$	3,530
Less: Total revenue attributable to MUSA		361			290
Total revenue, excluding MUSA (q)		$	3,499		$	3,240
Efficiency ratio, excluding MUSA ⁽⁵⁾(p)/(q)		72.84		%	78.39		%

Noninterest expense, as adjusted		$	2,276		$	2,264
Less: noninterest expense attributable to MUSA		278			245
	Noninterest expense, as adjusted excluding MUSA (r)	$	1,998		$	2,019

Total revenue, as adjusted		$	3,453		$	3,158
Less: revenue attributable to MUSA		361			290
	Total revenue, as adjusted excluding MUSA (s)	$	3,092		$	2,868
Adjusted efficiency ratio excluding MUSA ⁽⁶⁾(r)/(s)		64.61		%	70.40		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 17

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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Performance ratios excluding MUSA ⁽⁸⁾:
Net interest income (taxable-equivalent basis)		$	781		$	762		$	730		$	737		$	730
Less: Net interest income (taxable-equivalent basis) attributable to MUSA		46			35			25			20			17
	Net interest income (taxable-equivalent basis) excluding MUSA (t)	$	735		$	727		$	705		$	717		$	713
Total average earnings assets		$	136,051		$	137,198		$	142,153		$	142,179		$	138,504
Less: Total average earnings assets attributable to MUSA		28,115			30,343			35,577			35,517			33,926
	Total average earnings assets excluding MUSA (u)	$	107,936		$	106,855		$	106,576		$	106,662		$	104,578
Net interest margin excluding MUSA (t)/(u) ⁽³⁾		2.72		%	2.73		%	2.65		%	2.68		%	2.72		%




		As of and for the Nine Months Ended
		September 30,			September 30,
(Dollars in millions)		2016			2015
Net interest income (taxable-equivalent basis)		$	2,273		$	2,180
Less: Net interest income (taxable-equivalent basis) attributable to MUSA		106			52
	Net interest income (taxable-equivalent basis) excluding MUSA (v)	$	2,167		$	2,128
Total average earnings assets		$	138,459		$	139,671
Less: Total average earnings assets attributable to MUSA		31,333			35,583
	Total average earnings assets excluding MUSA (w)	$	107,126		$	104,088
Net interest margin excluding MUSA (v)/(w) ⁽³⁾		2.70		%	2.72		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 18

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)

Return on tangible common equity is net income excluding intangible asset amortization divided by average tangible common equity. Management believes that this ratio provides useful supplemental information regarding the Company's business results. The methodology for determining tangible common equity may differ among companies. Please refer to Exhibits 13,15,16 and 17 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 13,15,16 and 17 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)	These performance ratios exclude MUFG Securities Americas Inc. (MUSA), MUAH's broker-dealer subsidiary. Management believes these ratios provide useful supplemental information regarding the Company's business results. Please refer to exhibits 16, 17, and 18 for reconciliations between certain GAAP amounts and these non-GAAP measures.


(9)	Ratios calculated at September 30, 2016 reflect the designation of MUAH as the U.S. Intermediate Holding Company (IHC) of MUFG on July 1, 2016. Prior period ratios have not been revised to include the transferred IHC entities.


(10)	Preliminary as of September 30, 2016.


(11)	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.

(12)

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.

(13)

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.


(14)	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.


(15)	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.


(16)	Fees from affiliates represent income from BTMU pursuant to a master services agreement whereby the Bank provides BTMU with support services for its U.S. branch banking operations in exchange for fee income.


(17)	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.


(18)	Includes noninterest bearing trading account assets.


(19)	Includes noninterest bearing trading account liabilities.

(20)

Excludes loans totaling $13 million, $16 million, $28 million, $16 million, and $30 million that are 90 days or more past due and still accruing at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 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.


(21)	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 19

Alan Gulick

Doug Lambert

Corporate Communications

Investor Relations

(425) 423-7317

(212) 782-6872