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

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8-K - UNIONBANCAL CORPORATION 8-K - MUFG Americas Holdings Corp	a6809902.htm

Exhibit 99.1

UnionBanCal Corporation Reports Second Quarter Net Income of $242 Million

Second Quarter Highlights:

Net income was $242 million, up from $235 million for the prior quarter, and $154 million for the year-ago quarter.
Key asset quality metrics continued to be strong in second quarter. Excluding FDIC covered assets:
- Nonperforming assets at quarter-end were $678 million, or 0.86 percent of total assets, down from $815 million, or 1.03 percent of total assets, prior quarter.
- Allowance for credit losses to nonaccrual loans was 144 percent at quarter-end, down from 148 percent prior quarter.
Net interest margin was 3.44 percent, down 5 basis points from the prior quarter, and up 33 basis points from the year-ago quarter.
Loan-to-deposit ratio was 86 percent at June 30, 2011, up from 82 percent at March 31, 2011, and up from 73 percent at June 30, 2010, due to a combination of planned deposit runoff and loan growth.
Capital levels strengthened during the quarter:
- Tangible common equity ratio was 10.29 percent at June 30, 2011, compared with 9.80 percent at March 31, 2011.
- Tier 1 common capital ratio was 13.08 percent at June 30, 2011, compared with 12.84 percent at March 31, 2011.

SAN FRANCISCO--(BUSINESS WIRE)--July 28, 2011--UnionBanCal Corporation (the Company or UB), parent company of San Francisco-based Union Bank, N.A., today reported second quarter 2011 results. Net income for second quarter was $242 million, up from $235 million for the prior quarter, and $154 million for the year-ago quarter. The improvement in net income compared with the prior quarter was primarily driven by lower noninterest expense.

Summary of Second Quarter Results

Second Quarter Total Revenue and Net Interest Income

For second quarter 2011, total revenue (net interest income plus noninterest income) was $854 million, down $4 million compared with the prior quarter. Net interest income decreased 1 percent, and noninterest income was flat. The net interest margin was 3.44 percent.

Net interest income for second quarter 2011 was $614 million, down $4 million, or 1 percent, compared with first quarter 2011. The decrease in net interest income was primarily due to a 5 basis point decline in the net interest margin, which was largely attributable to higher average rates paid on interest bearing liabilities, a lower average yield on total loans held for investment, and a higher average balance of lower-yielding interest bearing deposits in banks. A higher average yield on the securities portfolio, reflecting a continued portfolio remix, and a higher average balance of noninterest bearing deposits partially offset the decline in the margin.

Average total loans increased $566 million, or 1 percent, compared with first quarter 2011. Excluding FDIC covered loans, average total loans increased $700 million, or 1 percent, reflecting growth in residential mortgage loans and commercial & industrial loans. Average FDIC covered loans decreased $134 million, or 9 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $819 million, or 5 percent. Average interest bearing deposits decreased $2 billion, or 5 percent, primarily due to planned deposit runoff resulting from targeted rate reductions in transaction and money market accounts.

Compared with second quarter 2010, total revenue increased 1 percent, with net interest income up 2 percent and noninterest income down 2 percent. Average total loans increased 2 percent, primarily due to growth in residential mortgage loans and commercial & industrial loans. Average noninterest bearing deposits increased $3 billion, or 21 percent. Average interest bearing deposits decreased $13 billion, or 24 percent, primarily due to planned deposit runoff resulting from targeted rate reductions. The net interest margin, which increased 33 basis points compared with the year-ago quarter, benefited from a higher yield on securities; lower rates paid on total interest bearing deposits; and an improved earning assets mix, including a decreased volume of low-yielding interest bearing deposits in banks. Partially offsetting these benefits was a lower yield on average total loans.

Second Quarter Noninterest Income and Noninterest Expense

For second quarter 2011, noninterest income was $240 million, flat compared with prior quarter. Higher merchant banking fees were offset by lower trading account activities and lower other noninterest income. Other noninterest income decreased primarily due to a gain on the sale of MasterCard shares recorded in first quarter 2011, and an accretion adjustment to the indemnification asset associated with FDIC covered loans.

Noninterest income decreased $4 million, or 2 percent, compared with second quarter 2010. Service charges on deposit accounts decreased $8 million, reflecting lower overdraft volumes, and other noninterest income decreased $9 million, primarily due to an accretion adjustment to the indemnification asset associated with FDIC covered loans recorded in second quarter 2011. These decreases were partially offset by a $7 million increase in merchant banking fees.

Noninterest expense for second quarter 2011 was $578 million, down $37 million, or 6 percent, compared with first quarter 2011. The decrease was primarily due to a $44 million decrease in other noninterest expense, partially offset by an $11 million increase in professional and outside services expense. The decrease in other noninterest expense was primarily due to certain reserves for contingencies recorded in first quarter 2011. The provision for losses on off-balance sheet commitments was a benefit of $18 million in second quarter 2011, compared with a benefit of $13 million in first quarter 2011.

Noninterest expense for second quarter 2011 decreased $6 million, or 1 percent, compared with second quarter 2010. The decrease was primarily due to a reduction in the provision for off-balance sheet commitments and lower regulatory agencies expense, resulting from a reduction in the assessment rate for deposit insurance and lower deposit balances. The decrease was substantially offset by higher salaries and employee benefits expense.

Balance Sheet

At June 30, 2011, the Company had total assets of $80.1 billion, down $0.5 billion, or 1 percent, compared with March 31, 2011, and down $4.2 billion, or 5 percent, compared with June 30, 2010.

At June 30, 2011, total deposits were $57.2 billion, down $1.5 billion, or 3 percent, compared with March 31, 2011, and down $9.1 billion, or 14 percent, compared with June 30, 2010. Core deposits at June 30, 2011, were $46.4 billion, down $1.6 billion, or 3 percent, compared with March 31, 2011, and down $6.5 billion, or 12 percent, compared with June 30, 2010. The decline in total deposits and core deposits reflects planned runoff of targeted higher-rate deposits. At June 30, 2011, the Company’s loan-to-deposit ratio was 86 percent, up from 82 percent at March 31, 2011, and up from 73 percent at June 30, 2010.

Credit Quality

The total provision for credit losses was a benefit of $112 million for second quarter 2011, compared with a benefit of $115 million for first quarter 2011, as asset quality continued to improve overall. Nonperforming assets, excluding FDIC covered assets, declined $137 million, or 17 percent, compared with prior quarter. Net charge-offs increased $58 million, or 109 percent, compared with prior quarter, primarily reflecting the charge-off of a single large lease financing credit, which had been substantially reserved for in prior quarters.

Excluding FDIC covered assets, nonperforming assets were $678 million, or 0.86 percent of total assets at June 30, 2011, compared with $815 million, or 1.03 percent of total assets, at March 31, 2011, and $1.381 billion, or 1.68 percent of total assets, at June 30, 2010.

Net charge-offs for second quarter 2011 were $111 million, up from $53 million for first quarter 2011, reflecting the charge-off of a $71 million lease financing credit in second quarter 2011. As a percent of average total loans, excluding FDIC covered assets, net charge-offs for second quarter 2011 were 0.92 percent annualized, up from 0.46 percent annualized for first quarter 2011. For second quarter 2010, net charge-offs were $94 million, or 0.81 percent annualized of average total loans.

The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In second quarter 2011, the provision for loan losses was a benefit of $94 million and the provision for losses on off-balance sheet commitments was a benefit of $18 million.

The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 1.97 percent at June 30, 2011, compared with 2.48 percent at March 31, 2011, and 3.29 percent at June 30, 2010. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 144 percent at June 30, 2011, compared with 148 percent at March 31, 2011, and 115 percent at June 30, 2010.

Capital

Total stockholder’s equity was $10.7 billion and tangible common equity was $8.0 billion at June 30, 2011. The Company’s tangible common equity ratio was 10.29 percent at June 30, 2011, up 49 basis points from 9.80 percent at March 31, 2011, and up 150 basis points from 8.79 percent at June 30, 2010. The Basel I Tier 1 common capital ratio at June 30, 2011, was 13.08 percent, compared with 12.84 percent at March 31, 2011. The Company’s Basel I Tier 1 and Total risk-based capital ratios at June 30, 2011, were 13.08 percent and 15.41 percent, respectively.

Non-GAAP Financial Measures

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

Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $80.1 billion at June 30, 2011. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 403 full-service branches in California, Washington, Oregon and Texas, as well as two international offices, on June 30, 2011. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.


UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 1
	As of and for the Three Months Ended																		Percent Change to June 30, 2011 from
(Dollars in millions)	June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010			June 30, 2010			March 31, 2011			June 30, 2010
Results of operations:
Net interest income	$	614			$	618			$	631			$	618		$	601		(1	)	%	2		%
Noninterest income		240				240				251				218			244		-			(2	)
Total revenue		854				858				882				836			845		-			1
Noninterest expense		578				615				701				562			584		(6	)		(1	)
Pre-tax, pre-provision income		276				243				181				274			261		14			6
(Reversal of) provision for loan losses		(94	)			(102	)			(40	)			8			44		8			nm
Income before income taxes and including noncontrolling interests		370				345				221				266			217		7			71
Income tax expense		131				114				58				99			67		15			96
Net income including noncontrolling interests		239				231				163				167			150		3			59
Deduct: Net loss from noncontrolling interests		3				4				9				3			4		(25	)		(25	)
Net income attributable to UnionBanCal Corporation (UNBC)	$	242			$	235			$	172			$	170		$	154		3			57

Balance sheet (end of period):
Total assets	$	80,093			$	80,642			$	79,097			$	79,840		$	84,310		(1	)		(5	)
Total securities		19,430				21,673				22,114				19,630			23,055		(10	)		(16	)
Total loans held for investment		48,967				48,105				48,094				47,893			48,320		2			1
Core deposits ⁽³⁾		46,443				48,018				48,667				50,596			52,935		(3	)		(12	)
Total deposits		57,181				58,677				59,954				61,541			66,271		(3	)		(14	)
Long-term debt		7,069				6,078				5,598				4,458			4,716		16			50
UNBC stockholder's equity		10,667				10,355				10,125				10,134			9,942		3			7

Balance sheet (period average):
Total assets	$	80,334			$	80,056			$	80,182			$	82,265		$	85,511		-			(6	)
Total securities		20,543				21,601				21,560				22,487			23,089		(5	)		(11	)
Total loans held for investment		48,849				48,283				47,952				48,105			47,827		1			2
Earning assets		71,709				71,351				71,517				73,603			77,412		1			(7	)
Core deposits ⁽³⁾		47,510				48,399				50,778				52,299			54,381		(2	)		(13	)
Total deposits		58,333				59,471				61,728				64,822			68,104		(2	)		(14	)
UNBC stockholder's equity		10,366				10,167				10,034				9,913			9,631		2			8

Performance ratios:
Return on average assets ⁽²⁾		1.21		%		1.19		%		0.85		%		0.82	%		0.72	%
Return on average UNBC stockholder's equity ⁽²⁾		9.36				9.38				6.81				6.80			6.40
Net interest margin ^{(1) (2)}		3.44				3.49				3.53				3.36			3.11

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.08		%		12.84		%		12.44		%		12.27	%		11.95	%
Total risk-based capital ratio ⁽⁷⁾		15.41				15.41				15.01				14.97			14.64
Leverage ratio ⁽⁷⁾		10.96				10.66				10.34				9.86			9.23
Tier 1 common capital ratio ^{(6) (7)}		13.08				12.84				12.42				12.25			11.93
Tangible common equity ratio ⁽⁵⁾		10.29				9.80				9.67				9.56			8.79

Selected financial ratios excluding impact of privatization transaction ⁽¹¹⁾:
From net income attributable to UNBC:
Return on average assets ⁽²⁾		1.28		%		1.24		%		0.92		%		0.89	%		0.78	%
Return on average stockholder's equity ⁽²⁾		12.45				12.41				9.32				9.43			9.01
Core efficiency ratio⁽⁴⁾		63.74				67.47				68.83				61.13			62.39

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 2

	As of and for the Six Months Ended							Percent Change to June 30, 2011 from
(Dollars in millions)	June 30, 2011 ⁽¹⁾				June 30, 2010 ⁽¹⁾			June 30, 2010
Results of operations:
Net interest income	$	1,232			$	1,175		5		%
Noninterest income		480				454		6
Total revenue		1,712				1,629		5
Noninterest expense		1,193				1,109		8
Pre-tax, pre-provision income		519				520		-
(Reversal of) provision for loan losses		(196	)			214		nm
Income before income taxes and including noncontrolling interests		715				306		134
Income tax expense		245				82		199
Net income including noncontrolling interests		470				224		110
Deduct: Net loss from noncontrolling interests		7				7		-
Net income attributable to UNBC	$	477			$	231		106

Balance sheet (end of period):
Total assets	$	80,093			$	84,310		(5	)
Total securities		19,430				23,055		(16	)
Total loans held for investment		48,967				48,320		1
Core deposits ⁽³⁾		46,443				52,935		(12	)
Total deposits		57,181				66,271		(14	)
Long-term debt		7,069				4,716		50
UNBC stockholder's equity		10,667				9,942		7

Balance sheet (period average):
Total assets	$	80,195			$	85,162		(6	)
Total securities		21,069				23,316		(10	)
Total loans held for investment		48,568				47,340		3
Total earning assets		71,531				77,535		(8	)
Core deposits ⁽³⁾		47,952				54,484		(12	)
Total deposits		58,899				67,972		(13	)
UNBC stockholder's equity		10,268				9,582		7

Performance ratios:
Return on average assets ⁽²⁾		1.20		%		0.55	%
Return on average UNBC stockholder's equity ⁽²⁾		9.37				4.86
Net interest margin ^{(1) (2)}		3.46				3.05

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.08		%		11.95	%
Total risk-based capital ratio ⁽⁷⁾		15.41				14.64
Leverage ratio ⁽⁷⁾		10.96				9.23
Tier 1 common capital ratio ^{(6) (7)}		13.08				11.93
Tangible common equity ratio ⁽⁵⁾		10.29				8.79

Selected financial ratios excluding impact of privatization transaction ⁽¹¹⁾:
From net income attributable to UNBC:
Return on average assets ⁽²⁾		1.26		%		0.61	%
Return on average stockholder's equity ⁽²⁾		12.43				7.08
Core efficiency ratio⁽⁴⁾		65.60				61.97

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Credit Quality (Unaudited)
Exhibit 3
	As of and for the Three Months Ended																			Percent Change to June 30, 2011 from
(Dollars in millions)	June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010			March 31, 2011			June 30, 2010

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(92	)		$	(102	)		$	(48	)		$	8			$	44		10		%	nm		%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(2	)			-				8				-				-		nm			nm
(Reversal of) provision for losses on off-balance sheet commitments		(18	)			(13	)			(2	)			(8	)			1		(38	)		nm
Total (reversal of) provision for credit losses	$	(112	)		$	(115	)		$	(42	)		$	-			$	45		3			nm
Net loans charged off	$	111			$	53			$	64			$	89			$	94		109			18
Nonperforming assets		865				1,032				1,142				1,487				1,561		(16	)		(45	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment		1.69		%		2.15		%		2.48		%		2.67		%		2.81	%
Nonaccrual loans		114.05				118.50				123.40				98.38				100.38
Allowances for credit losses to ⁽⁸⁾:
Total loans held for investment		1.96				2.46				2.81				3.01				3.17
Nonaccrual loans		132.19				135.61				140.23				111.04				113.13
Net loans charged off to average total loans held for investment ⁽²⁾		0.91				0.44				0.52				0.74				0.78
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)		1.76				2.14				2.37				3.09				3.22
Nonperforming assets to total assets		1.08				1.28				1.44				1.86				1.85
Nonaccrual loans to total loans held for investment		1.48				1.81				2.01				2.71				2.80

Excluding FDIC covered assets ⁽¹²⁾:
Allowance for loan losses to:
Total loans held for investment		1.70		%		2.17		%		2.50		%		2.76		%		2.92	%
Nonaccrual loans		124.09				129.10				137.32				110.48				102.17
Allowances for credit losses to ⁽⁸⁾:
Total loans held for investment		1.97				2.48				2.85				3.12				3.29
Nonaccrual loans		144.23				148.17				156.44				124.70				115.14
Net loans charged off to average total loans held for investment ⁽²⁾		0.92				0.46				0.54				0.77				0.81
Nonperforming assets to total loans held for investment and OREO		1.42				1.74				1.91				2.60				2.97
Nonperforming assets to total assets		0.86				1.03				1.15				1.54				1.68
Nonaccrual loans to total loans held for investment		1.37				1.68				1.82				2.50				2.86


	As of and for the Six Months Ended								Percent Change to June 30, 2011 from
(Dollars in millions)	June 30, 2011				June 30, 2010				June 30, 2010

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(194	)		$	214			nm			%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(2	)			-			nm
(Reversal of) provision for losses on off-balance sheet commitments		(31	)			(4	)		nm
Total (reversal of) provision for credit losses	$	(227	)		$	210			nm
Net loans charged off	$	164			$	213				(23	)
Nonperforming assets		865				1,561				(45	)

Credit Ratios:
Net loans charged off to average total loans held for investment ⁽²⁾		0.68		%		0.91		%
Nonperforming assets to total assets		1.08				1.85

Excluding FDIC covered assets ⁽¹²⁾:
Net loans charged off to average total loans held for investment ⁽²⁾		0.69		%		0.92		%
Nonperforming assets to total assets		0.86				1.68

Refer to Exhibit 13 for footnote explanations.


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


			For the Three Months Ended
(Dollars in millions)			June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010
Interest Income
	Loans		$	565		$	559		$	576		$	582		$	568
	Securities			138			143			137			132			135
	Other			2			1			1			2			5
		Total interest income		705			703			714			716			708

Interest Expense
	Deposits			53			53			56			70			78
	Commercial paper and other short-term borrowings			2			1			-			1			2
	Long-term debt			36			31			27			27			27
		Total interest expense		91			85			83			98			107

Net Interest Income				614			618			631			618			601
	(Reversal of) provision for loan losses			(94	)		(102	)		(40	)		8			44
		Net interest income after (reversal of) provision for loan losses		708			720			671			610			557

Noninterest Income
	Service charges on deposit accounts			56			57			58			62			64
	Trust and investment management fees			34			34			34			33			35
	Trading account activities			28			33			33			32			25
	Merchant banking fees			29			19			28			19			22
	Securities gains, net			29			28			33			11			27
	Brokerage commissions and fees			12			13			10			11			10
	Card processing fees, net			12			10			10			10			12
	Other			40			46			45			40			49
		Total noninterest income		240			240			251			218			244

Noninterest Expense
	Salaries and employee benefits			346			344			338			293			319
	Net occupancy and equipment			67			65			64			65			64
	Professional and outside services			55			44			56			54			50
	Intangible asset amortization			24			25			31			31			30
	Regulatory assessments			19			21			26			30			30
	(Reversal of) provision for losses on off-balance sheet commitments			(18	)		(13	)		(2	)		(8	)		1
	Other			85			129			188			97			90
		Total noninterest expense		578			615			701			562			584

	Income before income taxes and including noncontrolling interests			370			345			221			266			217
	Income tax expense			131			114			58			99			67

Net Income including Noncontrolling Interests				239			231			163			167			150

	Deduct: Net loss from noncontrolling interests			3			4			9			3			4
Net Income attributable to UNBC			$	242		$	235		$	172		$	170		$	154


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


			For the Six Months Ended
(Dollars in millions)			June 30, 2011			June 30, 2010
Interest Income
	Loans		$	1,124		$	1,108
	Securities			281			278
	Other			3			10
		Total interest income		1,408			1,396

Interest Expense
	Deposits			106			164
	Commercial paper and other short-term borrowings			3			3
	Long-term debt			67			54
		Total interest expense		176			221

Net Interest Income				1,232			1,175
	(Reversal of) provision for loan losses			(196	)		214
		Net interest income after (reversal of) provision for loan losses		1,428			961

Noninterest Income
	Service charges on deposit accounts			113			130
	Trust and investment management fees			68			66
	Trading account activities			61			46
	Securities gains, net			57			61
	Merchant banking fees			48			36
	Brokerage commissions and fees			25			19
	Card processing fees, net			22			21
	Other			86			75
		Total noninterest income		480			454

Noninterest Expense
	Salaries and employee benefits			690			599
	Net occupancy and equipment			132			123
	Professional and outside services			99			89
	Intangible asset amortization			49			62
	Regulatory assessments			40			60
	(Reversal of) provision for losses on off-balance sheet commitments			(31	)		(4	)
	Other			214			180
		Total noninterest expense		1,193			1,109

	Income before income taxes and including noncontrolling interests			715			306
	Income tax expense			245			82

Net Income including Noncontrolling Interests				470			224

	Deduct: Net loss from noncontrolling interests			7			7
Net Income attributable to UNBC			$	477		$	231


UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets
Exhibit 6

	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
(Dollars in millions)	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010
Assets
Cash and due from banks	$	1,233		$	1,247		$	946		$	1,172		$	1,221
Interest bearing deposits in banks (includes $24 at June 30, 2011, $23 at March 31, 2011, $11 at December 31, 2010, $9 at September 30, 2010 and $13 at June 30, 2010 related to consolidated variable interest entities (VIEs))		2,477			1,912			217			2,419			2,873
Federal funds sold and securities purchased under resale agreements		78			24			11			595			288
Total cash and cash equivalents		3,788			3,183			1,174			4,186			4,382
Trading account assets:
Pledged as collateral		1			6			43			37			64
Held in portfolio		897			870			956			1,134			1,055
Securities available for sale:
Pledged as collateral		340			308			10			-			-
Held in portfolio		17,758			20,026			20,781			18,327			21,789
Securities held to maturity (Fair value: June 30, 2011, $1,610; March 31, 2011, $1,646; December 31, 2010, $1,560; September 30, 2010, $1,481 and June 30, 2010, $1,434)		1,332			1,339			1,323			1,303			1,266
Loans held for investment:
Loans, excluding FDIC covered loans		47,718			46,715			46,584			46,214			46,496
FDIC covered loans		1,249			1,390			1,510			1,679			1,824
Total loans held for investment		48,967			48,105			48,094			47,893			48,320
Allowance for loan losses		(826	)		(1,034	)		(1,191	)		(1,277	)		(1,358	)
Loans held for investment, net		48,141			47,071			46,903			46,616			46,962
Premises and equipment, net		686			694			712			674			671
Intangible assets, net		407			432			457			487			517
Goodwill		2,447			2,447			2,456			2,456			2,456
FDIC indemnification asset		650			699			783			824			907
Other assets (includes $272 at June 30, 2011, $277 at March 31, 2011, $283 at December 31, 2010, $291 at September 30, 2010 and $294 at June 30, 2010 related to consolidated VIEs)		3,646			3,567			3,499			3,796			4,241
Total assets	$	80,093		$	80,642		$	79,097		$	79,840		$	84,310

Liabilities
Noninterest bearing	$	17,708		$	18,062		$	16,343		$	15,426		$	15,319
Interest bearing		39,473			40,615			43,611			46,115			50,952
Total deposits		57,181			58,677			59,954			61,541			66,271
Commercial paper and other short-term borrowings		2,838			3,260			1,356			977			999
Long-term debt (includes $8 at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010 related to consolidated VIEs)		7,069			6,078			5,598			4,458			4,716
Trading account liabilities		730			696			774			1,010			815
Other liabilities (includes $2 at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010 related to consolidated VIEs)		1,338			1,303			1,024			1,447			1,289
Total liabilities		69,156			70,014			68,706			69,433			74,090


Equity
UNBC Stockholder's Equity:
Common stock, par value $1 per share:
Authorized 300,000,000 shares; 136,330,829 shares issued		136			136			136			136			136
Additional paid-in capital		5,199			5,201			5,198			5,195			5,195
Retained earnings		5,945			5,703			5,468			5,296			5,131
Accumulated other comprehensive loss		(613	)		(685	)		(677	)		(493	)		(520	)
Total UNBC stockholder's equity		10,667			10,355			10,125			10,134			9,942
Noncontrolling interests		270			273			266			273			278
Total equity		10,937			10,628			10,391			10,407			10,220
Total liabilities and equity	$	80,093		$	80,642		$	79,097		$	79,840		$	84,310

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Loans and Nonperforming Assets (Unaudited)
Exhibit 7


(Dollars in millions)	June 30, 2011		March 31, 2011		December 31, 2010		September 30, 2010		June 30, 2010

Loans held for investment (period end)
Loans held for investment, excluding FDIC covered loans:
Commercial and industrial	$	15,854	$	15,143	$	15,162	$	14,650	$	14,675
Commercial mortgage		7,729		7,749		7,816		7,893		8,062
Construction		1,055		1,153		1,460		1,850		2,114
Lease financing		701		773		757		635		642
Total commercial portfolio		25,339		24,818		25,195		25,028		25,493

Residential mortgage		18,610		18,110		17,531		17,295		17,089
Home equity and other consumer loans		3,769		3,787		3,858		3,891		3,914
Total consumer portfolio		22,379		21,897		21,389		21,186		21,003
Total loans held for investment, excluding FDIC covered loans		47,718		46,715		46,584		46,214		46,496
FDIC covered loans:
Commercial and industrial		332		387		433		495		554
Commercial mortgage		662		707		733		796		818
Construction		155		184		222		251		273
Residential mortgage		70		77		81		88		117
Home equity and other consumer loans		30		35		41		49		62
Total FDIC covered loans		1,249		1,390		1,510		1,679		1,824

Total loans held for investment	$	48,967	$	48,105	$	48,094	$	47,893	$	48,320

Nonperforming Assets (period end)
Nonaccrual loans:
Commercial and industrial	$	110	$	113	$	115	$	167	$	176
Commercial mortgage		230		265		329		481		510
Construction		47		71		140		244		373
Lease financing		-		71		-		-		-

Total commercial portfolio		387		520		584		892		1,059

Residential mortgage		242		241		243		237		245
Home equity and other consumer loans		23		22		22		27		25
Total consumer portfolio		265		263		265		264		270

Total nonaccrual loans, excluding FDIC covered loans		652		783		849		1,156		1,329
FDIC covered loans		72		90		116		142		24
Total nonaccrual loans		724		873		965		1,298		1,353

OREO		26		32		41		47		52
FDIC covered OREO		115		127		136		142		156

Total nonperforming assets	$	865	$	1,032	$	1,142	$	1,487	$	1,561

Total nonperforming assets, excluding FDIC covered assets	$	678	$	815	$	890	$	1,203	$	1,381

Loans 90 days or more past due and still accruing ⁽¹³⁾	$	2	$	3	$	2	$	17	$	6
Troubled debt restructured loans that are still accruing	$	82	$	45	$	22	$	25	$	9
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	184	$	189	$	198	$	149	$	88

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Allowances for Credit Losses (Unaudited)
Exhibit 8


	As of and for the Three Months Ended
(Dollars in millions)	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010

Analysis of Allowances for Credit Losses
Balance, beginning of period	$	1,034		$	1,191		$	1,277		$	1,358		$	1,408

(Reversal of) provision for loan losses, excluding FDIC covered loans		(92	)		(102	)		(48	)		8			44
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(2	)		-			8			-			-
Increase (decrease) in allowance covered by FDIC indemnification		(3	)		(2	)		17			-			-
Other		-			-			1			-			-

Loans charged off:
Commercial and industrial		(11	)		(23	)		(18	)		(37	)		(30	)
Commercial mortgage		(14	)		(24	)		(51	)		(27	)		(51	)
Construction		(3	)		(1	)		(4	)		(2	)		(10	)
Lease financing		(71	)		-			-			-			-
Total commercial portfolio		(99	)		(48	)		(73	)		(66	)		(91	)

Residential mortgage		(13	)		(14	)		(8	)		(25	)		(12	)
Home equity and other consumer loans		(10	)		(11	)		(15	)		(11	)		(9	)
Total consumer portfolio		(23	)		(25	)		(23	)		(36	)		(21	)

FDIC covered loans		(1	)		-			-			-			-
Total loans charged off		(123	)		(73	)		(96	)		(102	)		(112	)

Recoveries of loans previously charged off:
Commercial and industrial		8			7			19			5			8
Commercial mortgage		2			8			8			1			2
Construction		2			4			3			7			8
Total commercial portfolio		12			19			30			13			18

Residential mortgage		-			-			1			-			-
Home equity and other consumer loans		-			1			1			-			-
Total consumer portfolio		-			1			2			-			-

Total recoveries of loans previously charged off		12			20			32			13			18
Net loans charged off		(111	)		(53	)		(64	)		(89	)		(94	)

Ending balance of allowance for loan losses		826			1,034			1,191			1,277			1,358
Allowance for losses on off-balance sheet commitments		131			150			162			164			172
Allowances for credit losses	$	957		$	1,184		$	1,353		$	1,441		$	1,530

Components of allowance for loan losses:
Allowance for loan losses, excluding allowance on FDIC covered loans	$	809		$	1,011		$	1,166		$	1,277		$	1,358
Allowance for loan losses on FDIC covered loans		17			23			25			-			-
Total allowance for loan losses	$	826		$	1,034		$	1,191		$	1,277		$	1,358

Refer to Exhibit 13 for footnote explanations.


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

	For the Three Months Ended
	June 30, 2011							June 30, 2010
(Dollars in millions)	Average Balance			Interest Income/ Expense ⁽¹⁾		Average Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest Income/ Expense ⁽¹⁾		Average Yield/ Rate ⁽¹⁾⁽²⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	15,814		$	159	4.05	%	$	14,586		$	168	4.61	%
Commercial mortgage		7,726			84	4.31			8,180			86	4.20
Construction		1,116			11	4.03			2,145			15	2.91
Lease financing		775			8	3.99			641			6	3.88
Residential mortgage		18,324			221	4.83			16,984			226	5.34
Home equity and other consumer loans		3,782			40	4.23			3,919			43	4.41
Total loans, excluding FDIC covered loans		47,537			523	4.41			46,455			544	4.70
FDIC covered loans		1,312			44	13.33			1,372			26	7.54
Total loans held for investment		48,849			567	4.65			47,827			570	4.78
Securities		20,543			139	2.72			23,089			135	2.34
Interest bearing deposits in banks		2,086			1	0.24			5,920			4	0.25
Federal funds sold and securities purchased under resale agreements		71			-	0.10			392			-	0.15
Trading account assets		137			1	0.65			184			1	1.33
Other earning assets		23			-	2.18			-			-	-
Total earning assets		71,709			708	3.95			77,412			710	3.67
Allowance for loan losses		(992	)						(1,459	)
Cash and due from banks		1,208							1,202
Premises and equipment, net		692							672
Other assets		7,717							7,684
Total assets	$	80,334						$	85,511
Liabilities
Deposits:
Transaction and money market accounts	$	23,667			14	0.24		$	37,608			48	0.51
Savings and consumer time		7,898			14	0.71			7,421			15	0.83
Large time		8,811			25	1.16			8,265			15	0.73
Total interest bearing deposits		40,376			53	0.53			53,294			78	0.59
Commercial paper and other short-term borrowings ⁽¹⁰⁾		3,113			2	0.23			1,394			2	0.43
Long-term debt		6,349			36	2.22			4,732			27	2.33
Total borrowed funds		9,462			38	1.57			6,126			29	1.90
Total interest bearing liabilities		49,838			91	0.73			59,420			107	0.73
Noninterest bearing deposits		17,957							14,810
Other liabilities		1,900							1,368
Total liabilities		69,695							75,598
Equity
UNBC Stockholder's equity		10,366							9,631
Noncontrolling interests		273							282
Total equity		10,639							9,913
Total liabilities and equity	$	80,334						$	85,511

Net interest income/spread (taxable-equivalent basis)					617	3.22	%					603	2.94	%
Impact of noninterest bearing deposits						0.19							0.15
Impact of other noninterest bearing sources						0.03							0.02
Net interest margin						3.44							3.11
Less: taxable-equivalent adjustment					3							2
Net interest income				$	614						$	601


Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 10

	For the Three Months Ended
	June 30, 2011							March 31, 2011
(Dollars in millions)	Average Balance			Interest Income/ Expense ⁽¹⁾		Average Yield/ Rate ⁽¹⁾⁽²⁾		Average Balance			Interest Income/ Expense ⁽¹⁾		Average Yield/ Rate ⁽¹⁾⁽²⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	15,814		$	159	4.05	%	$	15,325		$	157	4.13	%
Commercial mortgage		7,726			84	4.31			7,778			85	4.38
Construction		1,116			11	4.03			1,341			12	3.48
Lease financing		775			8	3.99			776			8	4.33
Residential mortgage		18,324			221	4.83			17,794			220	4.94
Home equity and other consumer loans		3,782			40	4.23			3,823			40	4.29
Total loans, excluding FDIC covered loans		47,537			523	4.41			46,837			522	4.48
FDIC covered loans		1,312			44	13.33			1,446			39	10.89
Total loans held for investment		48,849			567	4.65			48,283			561	4.67
Securities		20,543			139	2.72			21,601			143	2.64
Interest bearing deposits in banks		2,086			1	0.24			1,200			1	0.25
Federal funds sold and securities purchased under resale agreements		71			-	0.10			96			-	0.18
Trading account assets		137			1	0.65			150			-	1.19
Other earning assets		23			-	2.18			21			-	3.49
Total earning assets		71,709			708	3.95			71,351			705	3.97
Allowance for loan losses		(992	)						(1,182	)
Cash and due from banks		1,208							1,246
Premises and equipment, net		692							712
Other assets		7,717							7,929
Total assets	$	80,334						$	80,056
Liabilities
Deposits:
Transaction and money market accounts	$	23,667			14	0.24		$	25,489			15	0.25
Savings and consumer time		7,898			14	0.71			7,857			14	0.71
Large time		8,811			25	1.16			8,987			24	1.03
Total interest bearing deposits		40,376			53	0.53			42,333			53	0.50
Commercial paper and other short-term borrowings ⁽¹⁰⁾		3,113			2	0.23			2,435			1	0.27
Long-term debt		6,349			36	2.22			5,902			31	2.16
Total borrowed funds		9,462			38	1.57			8,337			32	1.61
Total interest bearing liabilities		49,838			91	0.73			50,670			85	0.68
Noninterest bearing deposits		17,957							17,138
Other liabilities		1,900							1,815
Total liabilities		69,695							69,623
Equity
UNBC Stockholder's equity		10,366							10,167
Noncontrolling interests		273							266
Total equity		10,639							10,433
Total liabilities and equity	$	80,334						$	80,056

Net interest income/spread (taxable-equivalent basis)					617	3.22	%					620	3.29	%
Impact of noninterest bearing deposits						0.19							0.17
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						3.44							3.49
Less: taxable-equivalent adjustment					3							2
Net interest income				$	614						$	618


Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 11

	For the Six Months Ended
	June 30, 2011							June 30, 2010
(Dollars in millions)	Average Balance			Interest Income/ Expense ⁽¹⁾		Average Yield/ Rate ^{(1) (2)}		Average Balance			Interest Income/ Expense ⁽¹⁾		Average Yield/ Rate ^{(1) (2)}
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	15,571		$	316	4.09	%	$	14,770		$	330	4.50	%
Commercial mortgage		7,752			169	4.35			8,207			172	4.20
Construction		1,228			23	3.73			2,226			32	2.94
Lease financing		775			16	4.16			645			12	3.84
Residential mortgage		18,061			441	4.88			16,885			454	5.38
Home equity and other consumer loans		3,802			80	4.26			3,917			86	4.42
Total loans, excluding FDIC covered loans		47,189			1,045	4.44			46,650			1,086	4.67
FDIC covered loans		1,379			83	12.06			690			26	7.52
Total loans held for investment		48,568			1,128	4.66			47,340			1,112	4.72
Securities		21,069			282	2.68			23,316			279	2.39
Interest bearing deposits in banks		1,645			2	0.24			6,257			8	0.25
Federal funds sold and securities purchased under resale agreements		83			-	0.15			426			-	0.13
Trading account assets		144			1	0.93			196			2	1.52
Other earning assets		22			-	2.81			-			-	-
Total earning assets		71,531			1,413	3.96			77,535			1,401	3.62
Allowance for loan losses		(1,087	)						(1,433	)
Cash and due from banks		1,226							1,204
Premises and equipment, net		702							673
Other assets		7,823							7,183
Total assets	$	80,195						$	85,162
Liabilities
Deposits:
Transaction and money market accounts	$	24,573			29	0.24		$	38,729			111	0.58
Savings and consumer time		7,878			28	0.71			6,700			27	0.82
Large time		8,898			49	1.10			7,945			26	0.65
Total interest bearing deposits		41,349			106	0.52			53,374			164	0.62
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,776			3	0.25			1,445			3	0.42
Long-term debt		6,127			67	2.19			4,653			54	2.34
Total borrowed funds		8,903			70	1.59			6,098			57	1.88
Total interest bearing liabilities		50,252			176	0.70			59,472			221	0.75
Noninterest bearing deposits		17,550							14,598
Other liabilities		1,855							1,322
Total liabilities		69,657							75,392
Equity
UNBC Stockholder's equity		10,268							9,582
Noncontrolling interests		270							188
Total equity		10,538							9,770
Total liabilities and equity	$	80,195						$	85,162

Net interest income/spread (taxable-equivalent basis)					1,237	3.26	%					1,180	2.87	%
Impact of noninterest bearing deposits						0.18							0.15
Impact of other noninterest bearing sources						0.02							0.03
Net interest margin						3.46							3.05
Less: taxable-equivalent adjustment					5							5
Net interest income				$	1,232						$	1,175


Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures (Unaudited)
Exhibit 12

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

	As of and for the Three Months Ended																				For the Six Months Ended
(Dollars in millions)	June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010				June 30, 2011				June 30, 2010

Net income attributable to UNBC	$	242			$	235			$	172			$	170			$	154			$	477			$	231
Net adjustments related to privatization transaction, net of tax		6				3				7				8				9				9				21
Net income attributable to UNBC, excluding impact of privatization transaction	$	248			$	238			$	179			$	178			$	163			$	486			$	252

Average total assets	$	80,334			$	80,056			$	80,182			$	82,265			$	85,511			$	80,195			$	85,162
Net adjustments related to privatization transaction		2,459				2,473				2,488				2,509				2,529				2,466				2,538
Average total assets, excluding impact of privatization transaction	$	77,875			$	77,583			$	77,694			$	79,756			$	82,982			$	77,729			$	82,624
Return on average assets ⁽²⁾		1.21		%		1.19		%		0.85		%		0.82		%		0.72		%		1.20		%		0.55		%
Return on average assets, excluding impact of privatization transaction ^{(2) (11)}		1.28				1.24				0.92				0.89				0.78				1.26				0.61

Average UNBC stockholder's equity	$	10,366			$	10,167			$	10,034			$	9,913			$	9,631			$	10,268			$	9,582
Net adjustments related to privatization transaction		2,390				2,396				2,401				2,405				2,409				2,393				2,411
Average UNBC stockholder's equity, excluding impact of privatization transaction	$	7,976			$	7,771			$	7,633			$	7,508			$	7,222			$	7,875			$	7,171
Return on average UNBC stockholder's equity ⁽²⁾		9.36		%		9.38		%		6.81		%		6.80		%		6.40		%		9.37		%		4.86		%
Return on average UNBC stockholder's equity, excluding impact of privatization transaction ^{(2) (11)}		12.45				12.41				9.32				9.43				9.01				12.43				7.08

Noninterest expense	$	578			$	615			$	701			$	562			$	584			$	1,193			$	1,109
Less: Foreclosed asset expense		2				3				4				6				1				5				1
Less: (Reversal of) provision for losses on off-balance sheet commitments		(18	)			(13	)			(2	)			(8	)			1				(31	)			(4	)
Less: Low income housing credit investment amortization expense		18				13				19				13				14				31				28
Less: Expenses of the consolidated VIEs		6				6				15				6				6				12				11
Less: Merger costs related to acquisitions		10				13				9				11				13				23				13
Less: Asset impairment charge		-				-				30				-				-				-				-
Net noninterest expense before privatization adjustments (a)	$	560			$	593			$	626			$	534			$	549			$	1,153			$	1,060
Net adjustments related to privatization transaction		25				26				32				33				33				51				72
Net noninterest expense, excluding impact of privatization transaction (b)	$	535			$	567			$	594			$	501			$	516			$	1,102			$	988

Total revenue	$	854			$	858			$	882			$	836			$	845			$	1,712			$	1,629
Add: Net interest income taxable-equivalent adjustment		3				2				3				2				2				5				5
Total revenue, including taxable-equivalent adjustment (c)		857				860				885				838				847				1,717				1,634
Accretion related to privatization-related fair value adjustments		16				21				21				18				19				37				38
Total revenue, excluding impact of privatization transaction (d)	$	841			$	839			$	864			$	820			$	828			$	1,680			$	1,596
Core efficiency ratio (a)/(c) ⁽⁴⁾		65.53		%		68.80		%		70.88		%		63.69		%		64.86		%		67.17		%		64.92		%
Core efficiency ratio, excluding impact of privatization transaction (b)/(d) ⁽¹¹⁾		63.74				67.47				68.83				61.13				62.39				65.60				61.97

Total UNBC stockholder's equity	$	10,667			$	10,355			$	10,125			$	10,134			$	9,942
Less: Goodwill		2,447				2,447				2,456				2,456				2,456
Less: Intangible assets		407				432				457				487				517
Less: Deferred tax liabilities related to goodwill and intangible assets		(149	)			(159	)			(168	)			(180	)			(192	)
Tangible common equity (e)	$	7,962			$	7,635			$	7,380			$	7,371			$	7,161
Tier 1 capital, determined in accordance with regulatory requirements	$	8,535			$	8,280			$	8,029			$	7,861			$	7,682
Less: Trust preferred securities		-				-				13				13				13
Tier 1 common equity (f)	$	8,535			$	8,280			$	8,016			$	7,848			$	7,669
Total assets	$	80,093			$	80,642			$	79,097			$	79,840			$	84,310
Less: Goodwill		2,447				2,447				2,456				2,456				2,456
Less: Intangible assets		407				432				457				487				517
Less: Deferred tax liabilities related to goodwill and intangible assets		(149	)			(159	)			(168	)			(180	)			(159	)
Tangible assets (g)	$	77,388			$	77,922			$	76,352			$	77,077			$	81,496
Risk-weighted assets, determined in accordance with regulatory requirements (h) ⁽⁷⁾	$	65,274			$	64,467			$	64,516			$	64,080			$	64,301
Tangible common equity ratio (e)/(g) ⁽⁵⁾		10.29		%		9.80		%		9.67		%		9.56		%		8.79		%
Tier 1 common capital ratio (f)/(h) ⁽⁶⁾		13.08				12.84				12.42				12.25				11.93

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries

Footnotes
Exhibit 13


⁽¹⁾		Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.
⁽²⁾		Annualized.
⁽³⁾		Core deposits consist of total deposits, excluding brokered deposits and time deposits of $100,000 and over.
⁽⁴⁾		The core efficiency ratio, a non-GAAP financial measure, is net noninterest expense (noninterest expense excluding foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated VIEs, merger costs related to the acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank and asset impairment charges) as a percentage of total revenue (net interest income (taxable-equivalent basis) and noninterest income). Management discloses the core efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our core activities. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁵⁾		The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology of determining tangible common equity may differ among companies. The tangible common equity ratio has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁶⁾		The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. All of the trust preferred securities were paid off during the quarter ended March 31, 2011. The Tier 1 common capital ratio, a non-GAAP financial measure, has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁷⁾		Estimated as of June 30, 2011.
⁽⁸⁾		The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments.
⁽⁹⁾		Average balances on loans outstanding include all nonperforming loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.
⁽¹⁰⁾		Includes interest bearing trading liabilities.
⁽¹¹⁾		These ratios exclude the impact of the privatization transaction. Management believes that these ratios, which exclude the push-down accounting effects of the privatization transaction, provide useful supplemental information, which is important to a proper understanding of the Company's core business results. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽¹²⁾		These ratios exclude the impact of the FDIC covered loans, the related allowance for loan losses and FDIC covered OREO, which are covered under loss share agreements between Union Bank, N.A. and the Federal Deposit Insurance Corporation. Such agreements are related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank. Management believes the exclusion of FDIC covered loans and FDIC covered OREO in certain asset quality ratios that include nonperforming loans, nonperforming assets, total loans held for investment and the allowance for loan losses or credit losses in the numerator or denominator provides a better perspective into underlying asset quality trends.
⁽¹³⁾		Excludes loans totaling $251 million, $279 million, $312 million, $297 million and $255 million that are 90 days or more past due and still accruing at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, which consisted of FDIC covered loans accounted for in accordance with the accounting standards for purchased credit impaired loans.
nm		= not meaningful

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

MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 28, 2011

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MUFG Americas Holdings Corp Reports