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

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8-K - UNIONBANCAL CORPORATION 8K - MUFG Americas Holdings Corp	a50045686.htm

Exhibit 99.1

UnionBanCal Corporation Reports Third Quarter Net Income of $172 Million

Third Quarter Highlights:

Net income was $172 million, down from $242 million for the prior quarter, and up from $170 million for the year-ago quarter.
Net interest margin was 3.31 percent, down 13 basis points from the prior quarter, and down 5 basis points from the year-ago quarter.
Total loans held for investment, excluding FDIC covered loans, at September 30, 2011, were up 5 percent compared with June 30, 2011, and up 8 percent compared with September 30, 2010.
Loan-to-deposit ratio was 84 percent at September 30, 2011, down from 86 percent at June 30, 2011, and up from 78 percent at September 30, 2010.
Key asset quality metrics continued to be strong in third quarter. Excluding FDIC covered assets:
- Nonperforming assets at quarter-end were $690 million, or 0.83 percent of total assets, compared with $678 million, or 0.86 percent of total assets, prior quarter.
- Allowance for credit losses to nonaccrual loans was 132 percent at quarter-end, down from 144 percent prior quarter.
- Net charge-off ratio was 0.36 percent annualized, down from 0.92 percent annualized prior quarter, and down from 0.77 percent annualized for the year-ago quarter.
Capital levels remained strong during the quarter:
- Tangible common equity ratio was 10.10 percent at September 30, 2011, compared with 10.29 percent at June 30, 2011.
- Tier 1 common capital ratio was 13.09 percent at September 30, 2011, compared with 13.08 percent at June 30, 2011.

SAN FRANCISCO--(BUSINESS WIRE)--October 27, 2011--UnionBanCal Corporation (the Company or UB), parent company of San Francisco-based Union Bank, N.A., today reported third quarter 2011 results. Net income for third quarter was $172 million, down from $242 million for the prior quarter, and up from $170 million for the year-ago quarter. The decline in net income compared with the prior quarter was primarily due to a lower benefit from the provision for credit losses, lower total revenue and higher noninterest expense, partially offset by lower income tax expense.

Summary of Third Quarter Results

Third Quarter Total Revenue and Net Interest Income

For third quarter 2011, total revenue (net interest income plus noninterest income) was $791 million, down $63 million compared with the prior quarter. Net interest income decreased 1 percent, and noninterest income decreased 23 percent. The net interest margin was 3.31 percent.

Net interest income for third quarter 2011 was $606 million, down $8 million, or 1 percent, compared with second quarter 2011. The decrease in net interest income was primarily due to a 13 basis point decline in the net interest margin. The decline in the net interest margin was primarily due to lower yields on loans and securities and a shift in average balances from securities into lower-yielding interest bearing deposits in banks.

Average total loans held for investment increased $1.4 billion, or 3 percent, compared with second quarter 2011. Excluding FDIC covered loans, average total loans increased $1.5 billion, or 3 percent, reflecting growth in commercial and industrial loans and residential mortgage loans. Average FDIC covered loans decreased $141 million, or 11 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $677 million, or 4 percent, and average interest bearing deposits increased $570 million, or 1 percent, primarily reflecting growth in commercial deposits.

Compared with third quarter 2010, total revenue decreased 5 percent, with net interest income down 2 percent and noninterest income down 15 percent. Excluding FDIC covered loans, average total loans increased $2.7 billion, or 6 percent, reflecting growth in commercial and industrial loans and residential mortgage loans. Average FDIC covered loans decreased $619 million, or 35 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $3.2 billion, or 21 percent. Average interest bearing deposits decreased $8.4 billion, or 17 percent, primarily due to planned deposit runoff resulting from targeted rate reductions. Net interest income declined $12 million compared with the year-ago quarter due to a 5 basis point decline in the net interest margin, which was primarily due to lower yields on loans, a shift in average balances from securities into lower-yielding interest bearing deposits in banks and a shift in average balances from interest bearing deposits into long-term debt, partially offset by a higher average balance of noninterest bearing deposits.

Third Quarter Noninterest Income and Noninterest Expense

For third quarter 2011, noninterest income was $185 million, down $55 million, or 23 percent, compared with prior quarter, primarily due to lower securities gains, net, resulting from lower sales of securities during third quarter 2011, and lower other noninterest income, which decreased primarily due to an accretion adjustment to the indemnification asset associated with FDIC covered loans.

Noninterest income decreased $33 million, or 15 percent, compared with third quarter 2010, primarily due to an accretion adjustment to the indemnification asset associated with FDIC covered loans recorded in third quarter 2011.

Noninterest expense for third quarter 2011 was $603 million, up $25 million, or 4 percent, compared with second quarter 2011, primarily due to a reduced benefit for provision for losses on off-balance sheet commitments. There was no provision for losses on off-balance sheet commitments, compared with a benefit of $18 million in second quarter 2011.

Noninterest expense for third quarter 2011 increased $41 million, or 7 percent, compared with third quarter 2010. The increase was primarily due to higher salaries and benefits expense, partially offset by lower regulatory assessments expense, which resulted from a reduction in assessments for deposit insurance. There was no provision for losses on off-balance sheet commitments, compared with a benefit of $8 million in third quarter 2010.

Taxes

The change in the effective tax rate was primarily driven by income tax benefits related to a change in estimate to the valuation of FDIC covered assets, and the proportionately larger effect from a stable level of low income housing and alternative energy income tax credits compared to pre-tax income.

Balance Sheet

At September 30, 2011, the Company had total assets of $84 billion, up $3.9 billion, or 5 percent, compared with June 30, 2011, and up $4.2 billion, or 5 percent, compared with September 30, 2010.

At September 30, 2011, total deposits were $60.5 billion, up $3.3 billion, or 6 percent, compared with June 30, 2011, and down $1.1 billion, or 2 percent, compared with September 30, 2010. Core deposits at September 30, 2011, were $50.7 billion, up $2.6 billion, or 5 percent, compared with June 30, 2011, and down $1.3 billion, or 2 percent, compared with September 30, 2010. The sequential quarter increase in total deposits and core deposits was concentrated in noninterest bearing deposits. The year-over-year decrease in total deposits and core deposits reflects planned runoff of targeted higher-rate deposits. At September 30, 2011, the Company’s loan-to-deposit ratio was 84 percent, down from 86 percent at June 30, 2011, due to deposits growing faster than loans, and up from 78 percent at September 30, 2010, due to a combination of planned deposit runoff and loan growth.

Credit Quality

The total provision for credit losses was a benefit of $13 million for third quarter 2011, compared with a benefit of $112 million for second quarter 2011, reflecting loan growth and stable asset quality in the existing loan portfolio, but also reflecting increased economic uncertainty. Nonperforming assets, excluding FDIC covered assets, increased $12 million, or 2 percent, compared with prior quarter, primarily due a single commercial loan being moved to nonaccrual status during third quarter 2011. Net charge-offs decreased $67 million, or 60 percent, compared with second quarter 2011, primarily reflecting the charge-off of a single large lease financing credit recorded in the prior period.

Excluding FDIC covered assets, nonperforming assets were $690 million, or 0.83 percent of total assets at September 30, 2011, compared with $678 million, or 0.86 percent of total assets, at June 30, 2011, and $1.203 billion, or 1.54 percent of total assets, at September 30, 2010.

Net charge-offs for third quarter 2011 were $44 million, down from $111 million for second quarter 2011. Net charge-offs for second quarter 2011 reflected the charge-off of a $71 million lease financing credit. As a percent of average total loans, excluding FDIC covered assets, net charge-offs for third quarter 2011 were 0.36 percent annualized, down from 0.92 percent annualized for second quarter 2011. For third quarter 2010, net charge-offs were $89 million, or 0.77 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 third quarter 2011, the provision for loan losses was a benefit of $13 million and there was no provision for losses on off-balance sheet commitments.

The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 1.77 percent at September 30, 2011, compared with 1.97 percent at June 30, 2011, and 3.12 percent at September 30, 2010. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 132 percent at September 30, 2011, compared with 144 percent at June 30, 2011, and 125 percent at September 30, 2010.

Capital

Total stockholder’s equity was $10.9 billion and tangible common equity was $8.2 billion at September 30, 2011. The Company’s tangible common equity ratio was 10.10 percent at September 30, 2011, down 19 basis points from 10.29 percent at June 30, 2011, and up 54 basis points from 9.56 percent at September 30, 2010. The Basel I Tier 1 common capital ratio at September 30, 2011, was 13.09 percent, compared with 13.08 percent at June 30, 2011. The Company’s Basel I Tier 1 and Total risk-based capital ratios at September 30, 2011, were 13.09 percent and 15.41 percent, respectively.

Subsequent Event

Effective October 1, 2011, The Bank of Tokyo-Mitsubishi UFJ, Ltd. transferred its trust company, The Bank of Tokyo-Mitsubishi UFJ Trust Company, to the Company. This transaction had the effect of increasing assets by over $900 million and increasing Tier 1 common capital by over $700 million.

Non-GAAP Financial Measures

This press release contains certain references to financial measures identified as excluding privatization transaction impact, 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 Basel I 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 $84 billion at September 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 404 full-service branches in California, Washington, Oregon and Texas, as well as two international offices, on September 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

																				Percent Change to
	As of and for the Three Months Ended																			September 30, 2011 from
	September 30,				June 30,				March 31,				December 31,				September 30,			June 30,			September 30,
(Dollars in millions)	2011				2011				2011				2010				2010			2011			2010
Results of operations:
Net interest income	$	606			$	614			$	618			$	631			$	618		(1	)	%	(2	)	%
Noninterest income		185				240				240				251				218		(23	)		(15	)
Total revenue		791				854				858				882				836		(7	)		(5	)
Noninterest expense		603				578				615				701				562		4			7
Pre-tax, pre-provision income		188				276				243				181				274		(32	)		(31	)
(Reversal of) provision for loan losses		(13	)			(94	)			(102	)			(40	)			8		86			nm
Income before income taxes and including noncontrolling interests		201				370				345				221				266		(46	)		(24	)
Income tax expense		33				131				114				58				99		(75	)		(67	)
Net income including noncontrolling interests		168				239				231				163				167		(30	)		1
Deduct: Net loss from noncontrolling interests		4				3				4				9				3		33			33
Net income attributable to UnionBanCal Corporation (UNBC)	$	172			$	242			$	235			$	172			$	170		(29	)		1

Balance sheet (end of period):
Total assets	$	84,013			$	80,093			$	80,642			$	79,097			$	79,840		5			5
Total securities		20,962				19,430				21,673				22,114				19,630		8			7
Total loans held for investment		50,998				48,967				48,105				48,094				47,893		4			6
Core deposits ⁽³⁾		50,720				48,156				49,433				50,100				52,007		5			(2	)
Total deposits		60,454				57,181				58,677				59,954				61,541		6			(2	)
Long-term debt		7,064				7,069				6,078				5,598				4,458		-			58
UNBC stockholder's equity		10,900				10,667				10,355				10,125				10,134		2			8

Balance sheet (period average):
Total assets	$	82,197			$	80,334			$	80,056			$	80,182			$	82,265		2			-
Total securities		19,145				20,543				21,601				21,560				22,487		(7	)		(15	)
Total loans held for investment		50,214				48,849				48,283				47,952				48,105		3			4
Earning assets		73,303				71,709				71,351				71,517				73,603		2			-
Total deposits		59,580				58,333				59,471				61,728				64,822		2			(8	)
UNBC stockholder's equity		10,708				10,366				10,167				10,034				9,913		3			8

Performance ratios:
Return on average assets ⁽²⁾		0.83		%		1.21		%		1.19		%		0.85		%		0.82	%
Return on average UNBC stockholder's equity ⁽²⁾		6.36				9.36				9.38				6.81				6.80
Net interest margin ^{(1) (2)}		3.31				3.44				3.49				3.53				3.36

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.09		%		13.08		%		12.84		%		12.44		%		12.27	%
Total risk-based capital ratio ⁽⁷⁾		15.41				15.41				15.41				15.01				14.97
Leverage ratio ⁽⁷⁾		10.93				10.96				10.66				10.34				9.86
Tier 1 common capital ratio ^{(6) (7)}		13.09				13.08				12.84				12.42				12.25
Tangible common equity ratio ⁽⁵⁾		10.10				10.29				9.80				9.67				9.56

Selected financial ratios excluding impact of privatization transaction ⁽¹¹⁾:
From net income attributable to UNBC:
Return on average assets ⁽²⁾		0.90		%		1.28		%		1.24		%		0.92		%		0.89	%
Return on average stockholder's equity ⁽²⁾		8.65				12.45				12.41				9.32				9.43
Core efficiency ratio⁽⁴⁾		70.41				63.74				67.47				68.83				61.13

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 2

								Percent Change to
	As of and for the Nine Months Ended							September 30, 2011 from
	September 30,				September 30,			September 30,
(Dollars in millions)	2011⁽¹⁾				2010⁽¹⁾			2010
Results of operations:
Net interest income	$	1,838			$	1,793			3		%
Noninterest income		665				672			(1	)
Total revenue		2,503				2,465			2
Noninterest expense		1,796				1,671			7
Pre-tax, pre-provision income		707				794			(11	)
(Reversal of) provision for loan losses		(209	)			222			nm
Income before income taxes and including noncontrolling interests		916				572			60
Income tax expense		278				181			54
Net income including noncontrolling interests		638				391			63
Deduct: Net loss from noncontrolling interests		11				10			10
Net income attributable to UNBC	$	649			$	401			62

Balance sheet (end of period):
Total assets	$	84,013			$	79,840			5
Total securities		20,962				19,630			7
Total loans held for investment		50,998				47,893			6
Core deposits ⁽³⁾		50,720				52,007			(2	)
Total deposits		60,454				61,541			(2	)
Long-term debt		7,064				4,458			58
UNBC stockholder's equity		10,900				10,134			8

Balance sheet (period average):
Total assets	$	80,870			$	84,186			(4	)
Total securities		20,421				23,037			(11	)
Total loans held for investment		49,121				47,598			3
Total earning assets		72,128				76,210			(5	)
Total deposits		59,129				66,910			(12	)
UNBC stockholder's equity		10,417				9,693			7

Performance ratios:
Return on average assets ⁽²⁾		1.07		%		0.64	%
Return on average UNBC stockholder's equity ⁽²⁾		8.33				5.53
Net interest margin ^{(1) (2)}		3.41				3.15

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.09		%		12.27	%
Total risk-based capital ratio ⁽⁷⁾		15.41				14.97
Leverage ratio ⁽⁷⁾		10.93				9.86
Tier 1 common capital ratio ^{(6) (7)}		13.09				12.25
Tangible common equity ratio ⁽⁵⁾		10.10				9.56

Selected financial ratios excluding impact of privatization transaction ⁽¹¹⁾:
From net income attributable to UNBC:
Return on average assets ⁽²⁾		1.14		%		0.70	%
Return on average stockholder's equity ⁽²⁾		11.11				7.89
Core efficiency ratio⁽⁴⁾		67.13				61.68

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Credit Quality (Unaudited)
Exhibit 3

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

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(13	)		$	(92	)		$	(102	)		$	(48	)		$	8			86		%	nm		%
(Reversal of ) provision for FDIC covered loan losses not subject to FDIC indemnification		-				(2	)			-				8				-			(100	)		-
(Reversal of) provision for losses on off-balance sheet commitments		-				(18	)			(13	)			(2	)			(8	)		(100	)		(100	)
Total (reversal of) provision for credit losses	$	(13	)		$	(112	)		$	(115	)		$	(42	)		$	-			88			nm
Net loans charged off	$	44			$	111			$	53			$	64			$	89			(60	)		(51	)
Nonperforming assets		870				865				1,032				1,142				1,487			1			(41	)
Credit Ratios:
Allowance for loan losses to:
Total loans held for investment		1.51		%		1.69		%		2.15		%		2.48		%		2.67		%
Nonaccrual loans		105.97				114.05				118.50				123.40				98.38
Allowance for credit losses to ⁽⁸⁾:
Total loans held for investment		1.76				1.96				2.46				2.81				3.01
Nonaccrual loans		124.09				132.19				135.61				140.23				111.04
Net loans charged off to average total loans held for investment ⁽²⁾		0.35				0.91				0.44				0.52				0.74
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)		1.70				1.76				2.14				2.37				3.09
Nonperforming assets to total assets		1.04				1.08				1.28				1.44				1.86
Nonaccrual loans to total loans held for investment		1.42				1.48				1.81				2.01				2.71

Excluding FDIC covered assets ⁽¹²⁾:
Allowance for loan losses to:
Total loans held for investment		1.51		%		1.70		%		2.17		%		2.50		%		2.76		%
Nonaccrual loans		112.28				124.09				129.10				137.32				110.48
Allowance for credit losses to ⁽⁸⁾:
Total loans held for investment		1.77				1.97				2.48				2.85				3.12
Nonaccrual loans		131.92				144.23				148.17				156.44				124.70
Net loans charged off to average total loans held for investment ⁽²⁾		0.36				0.92				0.46				0.54				0.77
Nonperforming assets to total loans held for investment and OREO		1.38				1.42				1.74				1.91				2.60
Nonperforming assets to total assets		0.83				0.86				1.03				1.15				1.54
Nonaccrual loans to total loans held for investment		1.34				1.37				1.68				1.82				2.50


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

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(207	)		$	222				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	)			(12	)			(158	)
Total (reversal of) provision for credit losses	$	(240	)		$	210				nm
Net loans charged off	$	208			$	302				(31	)
Nonperforming assets		870				1,487				(41	)

Credit Ratios:
Net loans charged off to average total loans held for investment ⁽²⁾		0.57		%		0.85		%
Nonperforming assets to total assets		1.04				1.86

Excluding FDIC covered assets ⁽¹²⁾:
Net loans charged off to average total loans held for investment ⁽²⁾		0.58		%		0.87		%
Nonperforming assets to total assets		0.83				1.54

Refer to Exhibit 13 for footnote explanations.


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

	For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in millions)	2011			2011			2011			2010			2010
Interest Income
Loans	$	576		$	565		$	559		$	576		$	582
Securities		123			138			143			137			132
Other		3			2			1			1			2
Total interest income		702			705			703			714			716

Interest Expense
Deposits		53			53			53			56			70
Commercial paper and other short-term borrowings		2			2			1			-			1
Long-term debt		41			36			31			27			27
Total interest expense		96			91			85			83			98

Net Interest Income		606			614			618			631			618
(Reversal of) provision for loan losses		(13	)		(94	)		(102	)		(40	)		8
Net interest income after (reversal of) provision for loan losses		619			708			720			671			610

Noninterest Income
Service charges on deposit accounts		57			56			57			58			62
Trust and investment management fees		33			34			34			34			33
Trading account activities		27			28			33			33			32
Merchant banking fees		27			29			19			28			19
Securities gains, net		1			29			28			33			11
Brokerage commissions and fees		12			12			13			10			11
Card processing fees, net		11			12			10			10			10
Other		17			40			46			45			40
Total noninterest income		185			240			240			251			218

Noninterest Expense
Salaries and employee benefits		348			346			344			338			293
Net occupancy and equipment		64			67			65			64			65
Professional and outside services		55			55			44			56			54
Intangible asset amortization		25			24			25			31			31
Regulatory assessments		14			19			21			26			30
(Reversal of) provision for losses on off-balance sheet commitments		-			(18	)		(13	)		(2	)		(8	)
Other		97			85			129			188			97
Total noninterest expense		603			578			615			701			562

Income before income taxes and including noncontrolling interests		201			370			345			221			266
Income tax expense		33			131			114			58			99
Net Income including Noncontrolling Interests		168			239			231			163			167
Deduct: Net loss from noncontrolling interests		4			3			4			9			3
Net Income attributable to UNBC	$	172		$	242		$	235		$	172		$	170


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

	For the Nine Months Ended
	September 30,			September 30,
(Dollars in millions)	2011			2010
Interest Income
Loans	$	1,700		$	1,690
Securities		404			410
Other		6			12
Total interest income		2,110			2,112

Interest Expense
Deposits		159			234
Commercial paper and other short-term borrowings		5			4
Long-term debt		108			81
Total interest expense		272			319

Net Interest Income		1,838			1,793
(Reversal of) provision for loan losses		(209	)		222
Net interest income after (reversal of) provision for loan losses		2,047			1,571

Noninterest Income
Service charges on deposit accounts		170			192
Trust and investment management fees		101			99
Trading account activities		88			78
Merchant banking fees		75			55
Securities gains, net		58			72
Brokerage commissions and fees		37			30
Card processing fees, net		33			31
Other		103			115
Total noninterest income		665			672

Noninterest Expense
Salaries and employee benefits		1,038			892
Net occupancy and equipment		196			188
Professional and outside services		154			143
Intangible asset amortization		74			93
Regulatory assessments		54			90
(Reversal of) provision for losses on off-balance sheet commitments		(31	)		(12	)
Other		311			277
Total noninterest expense		1,796			1,671
Income before income taxes and including noncontrolling interests		916			572
Income tax expense		278			181
Net Income including Noncontrolling Interests		638			391
Deduct: Net loss from noncontrolling interests		11			10
Net Income attributable to UNBC	$	649		$	401


UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 6

	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in millions)	2011			2011			2011			2010			2010
Assets
Cash and due from banks	$	1,277		$	1,233		$	1,247		$	946		$	1,172
Interest bearing deposits in banks (includes $7 at September 30, 2011, $24 at June 30, 2011, $23 at March 31, 2011, $11 at December 31, 2010 and $9 at September 30, 2010 related to consolidated variable interest entities (VIEs))		2,757			2,477			1,912			217			2,419
Federal funds sold and securities purchased under resale agreements		28			78			24			11			595
Total cash and cash equivalents		4,062			3,788			3,183			1,174			4,186
Trading account assets:
Pledged as collateral		6			1			6			43			37
Held in portfolio		1,114			897			870			956			1,134
Securities available for sale:
Pledged as collateral		-			340			308			10			-
Held in portfolio		19,633			17,758			20,026			20,781			18,327
Securities held to maturity (Fair value: September 30, 2011, $1,474; June 30, 2011, $1,610; March 31, 2011, $1,646; December 31, 2010, $1,560 and September 30, 2010, $1,481)		1,329			1,332			1,339			1,323			1,303
Loans held for investment:
Loans, excluding FDIC covered loans		49,904			47,718			46,715			46,584			46,214
FDIC covered loans		1,094			1,249			1,390			1,510			1,679
Total loans held for investment		50,998			48,967			48,105			48,094			47,893
Allowance for loan losses		(768	)		(826	)		(1,034	)		(1,191	)		(1,277	)
Loans held for investment, net		50,230			48,141			47,071			46,903			46,616
Premises and equipment, net		673			686			694			712			674
Intangible assets, net		383			407			432			457			487
Goodwill		2,447			2,447			2,447			2,456			2,456
FDIC indemnification asset		616			650			699			783			824
Other assets (includes $290 at September 30, 2011, $272 at June 30, 2011, $277 at March 31, 2011, $283 at December 31, 2010 and $291 at September 30, 2010 related to consolidated VIEs)		3,520			3,646			3,567			3,499			3,796
Total assets	$	84,013		$	80,093		$	80,642		$	79,097		$	79,840

Liabilities
Noninterest bearing	$	19,630		$	17,708		$	18,062		$	16,343		$	15,426
Interest bearing		40,824			39,473			40,615			43,611			46,115
Total deposits		60,454			57,181			58,677			59,954			61,541
Commercial paper and other short-term borrowings		2,455			2,838			3,260			1,356			977
Long-term debt (includes $8 at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010 related to consolidated VIEs)		7,064			7,069			6,078			5,598			4,458
Trading account liabilities		946			730			696			774			1,010
Other liabilities (includes $3 at September 30, 2011, and $2 at June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010 related to consolidated VIEs)		1,925			1,338			1,303			1,024			1,447
Total liabilities		72,844			69,156			70,014			68,706			69,433


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		5,203			5,199			5,201			5,198			5,195
Retained earnings		6,117			5,945			5,703			5,468			5,296
Accumulated other comprehensive loss		(556	)		(613	)		(685	)		(677	)		(493	)
Total UNBC stockholder's equity		10,900			10,667			10,355			10,125			10,134
Noncontrolling interests		269			270			273			266			273
Total equity		11,169			10,937			10,628			10,391			10,407
Total liabilities and equity	$	84,013		$	80,093		$	80,642		$	79,097		$	79,840

Refer to Exhibit 13 for footnote explanations.


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

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

Loans held for investment (period end)
Loans held for investment, excluding FDIC covered loans:
Commercial and industrial	$	17,545	$	15,854	$	15,143	$	15,162	$	14,650
Commercial mortgage		7,927		7,729		7,749		7,816		7,893
Construction		966		1,055		1,153		1,460		1,850
Lease financing		693		701		773		757		635
Total commercial portfolio		27,131		25,339		24,818		25,195		25,028

Residential mortgage		19,043		18,610		18,110		17,531		17,295
Home equity and other consumer loans		3,730		3,769		3,787		3,858		3,891
Total consumer portfolio		22,773		22,379		21,897		21,389		21,186
Total loans held for investment, excluding FDIC covered loans		49,904		47,718		46,715		46,584		46,214
FDIC covered loans		1,094		1,249		1,390		1,510		1,679
Total loans held for investment	$	50,998	$	48,967	$	48,105	$	48,094	$	47,893

Nonperforming Assets (period end)
Nonaccrual loans:
Commercial and industrial	$	163	$	110	$	113	$	115	$	167
Commercial mortgage		206		230		265		329		481
Construction		16		47		71		140		244
Lease financing		-		-		71		-		-
Total commercial portfolio		385		387		520		584		892
Residential mortgage		259		242		241		243		237
Home equity and other consumer loans		25		23		22		22		27
Total consumer portfolio		284		265		263		265		264
Total nonaccrual loans, excluding FDIC covered loans		669		652		783		849		1,156
FDIC covered loans		56		72		90		116		142
Total nonaccrual loans		725		724		873		965		1,298

OREO		21		26		32		41		47
FDIC covered OREO		124		115		127		136		142

Total nonperforming assets	$	870	$	865	$	1,032	$	1,142	$	1,487

Total nonperforming assets, excluding FDIC covered assets	$	690	$	678	$	815	$	890	$	1,203

Loans 90 days or more past due and still accruing ⁽¹³⁾	$	3	$	2	$	3	$	2	$	17

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

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	826		$	1,034		$	1,191		$	1,277		$	1,358

(Reversal of) provision for loan losses, excluding FDIC covered loans		(13	)		(92	)		(102	)		(48	)		8
(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	)		-			-			1			-

Loans charged off:
Commercial and industrial		(20	)		(11	)		(23	)		(18	)		(37	)
Commercial mortgage		(10	)		(14	)		(24	)		(51	)		(27	)
Construction		-			(3	)		(1	)		(4	)		(2	)
Lease financing		(5	)		(71	)		-			-			-
Total commercial portfolio		(35	)		(99	)		(48	)		(73	)		(66	)
Residential mortgage		(12	)		(13	)		(14	)		(8	)		(25	)
Home equity and other consumer loans		(8	)		(10	)		(11	)		(15	)		(11	)
Total consumer portfolio		(20	)		(23	)		(25	)		(23	)		(36	)
FDIC covered loans		(2	)		(1	)		-			-			-
Total loans charged off		(57	)		(123	)		(73	)		(96	)		(102	)

Recoveries of loans previously charged off:
Commercial and industrial		5			8			7			19			5
Commercial mortgage		1			2			8			8			1
Construction		4			2			4			3			7
Total commercial portfolio		10			12			19			30			13
Residential mortgage		1			-			-			1			-
Home equity and other consumer loans		1			-			1			1			-
Total consumer portfolio		2			-			1			2			-

FDIC covered loans		1			-			-			-			-
Total recoveries of loans previously charged off		13			12			20			32			13
Net loans charged off		(44	)		(111	)		(53	)		(64	)		(89	)

Ending balance of allowance for loan losses		768			826			1,034			1,191			1,277
Allowance for losses on off-balance sheet commitments		131			131			150			162			164
Total allowance for credit losses	$	899		$	957		$	1,184		$	1,353		$	1,441

Components of allowance for loan losses:

Allowance for loan losses, excluding allowance on FDIC covered loans	$	751		$	809		$	1,011		$	1,166		$	1,277
Allowance for loan losses on FDIC covered loans		17			17			23			25			-
Total allowance for loan losses	$	768		$	826		$	1,034		$	1,191		$	1,277

Refer to Exhibit 13 for footnote explanations.


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

	For the Three Months Ended
	September 30, 2011							June 30, 2011
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	16,947		$	160	3.76	%	$	15,814		$	159	4.05	%
Commercial mortgage		7,838			82	4.22			7,726			84	4.31
Construction		992			12	5.04			1,116			11	4.03
Lease financing		697			8	4.28			775			8	3.99
Residential mortgage		18,818			221	4.70			18,324			221	4.83
Home equity and other consumer loans		3,751			40	4.25			3,782			40	4.23
Total loans, excluding FDIC covered loans		49,043			523	4.26			47,537			523	4.41
FDIC covered loans		1,171			55	18.60			1,312			44	13.33
Total loans held for investment		50,214			578	4.60			48,849			567	4.65
Securities		19,145			123	2.56			20,543			139	2.72
Interest bearing deposits in banks		3,610			3	0.25			2,086			1	0.24
Federal funds sold and securities purchased under resale agreements		61			-	0.03			71			-	0.10
Trading account assets		166			-	0.68			137			1	0.65
Other earning assets		107			-	0.54			23			-	2.18
Total earning assets		73,303			704	3.83			71,709			708	3.95
Allowance for loan losses		(785	)						(992	)
Cash and due from banks		1,254							1,208
Premises and equipment, net		676							692
Other assets		7,749							7,717
Total assets	$	82,197						$	80,334
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	23,836			14	0.23		$	23,667			14	0.24
Savings		5,476			3	0.21			4,979			4	0.30
Time		11,634			36	1.28			11,730			35	1.22
Total interest bearing deposits		40,946			53	0.53			40,376			53	0.53
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,371			2	0.20			3,113			2	0.23
Long-term debt		7,066			41	2.31			6,349			36	2.22
Total borrowed funds		9,437			43	1.78			9,462			38	1.57
Total interest bearing liabilities		50,383			96	0.76			49,838			91	0.73
Noninterest bearing deposits		18,634							17,957
Other liabilities		2,203							1,900
Total liabilities		71,220							69,695
Equity
UNBC Stockholder's equity		10,708							10,366
Noncontrolling interests		269							273
Total equity		10,977							10,639
Total liabilities and equity	$	82,197						$	80,334

Net interest income/spread (taxable-equivalent basis)					608	3.07	%					617	3.22	%
Impact of noninterest bearing deposits						0.20							0.19
Impact of other noninterest bearing sources						0.04							0.03
Net interest margin						3.31							3.44
Less: taxable-equivalent adjustment					2							3
Net interest income				$	606						$	614


Refer to Exhibit 13 for footnote explanations.


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

	For the Three Months Ended
	September 30, 2011							September 30, 2010
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	16,947		$	160	3.76	%	$	14,628		$	176	4.78	%
Commercial mortgage		7,838			82	4.22			8,006			85	4.23
Construction		992			12	5.04			1,946			16	3.12
Lease financing		697			8	4.28			639			6	3.77
Residential mortgage		18,818			221	4.70			17,196			226	5.26
Home equity and other consumer loans		3,751			40	4.25			3,900			43	4.43
Total loans, excluding FDIC covered loans		49,043			523	4.26			46,315			552	4.75
FDIC covered loans		1,171			55	18.60			1,790			32	7.17
Total loans held for investment		50,214			578	4.60			48,105			584	4.84
Securities		19,145			123	2.56			22,487			132	2.36
Interest bearing deposits in banks		3,610			3	0.25			2,407			1	0.25
Federal funds sold and securities purchased under resale agreements		61			-	0.03			390			1	0.15
Trading account assets		166			-	0.68			214			-	1.10
Other earning assets		107			-	0.54			-			-	-
Total earning assets		73,303			704	3.83			73,603			718	3.89
Allowance for loan losses		(785	)						(1,375	)
Cash and due from banks		1,254							1,184
Premises and equipment, net		676							672
Other assets		7,749							8,181
Total assets	$	82,197						$	82,265
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	23,836			14	0.23		$	32,722			34	0.40
Savings		5,476			3	0.21			4,414			3	0.28
Time		11,634			36	1.28			12,254			33	1.07
Total interest bearing deposits		40,946			53	0.53			49,390			70	0.56
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,371			2	0.20			1,026			1	0.35
Long-term debt		7,066			41	2.31			4,528			27	2.40
Total borrowed funds		9,437			43	1.78			5,554			28	2.02
Total interest bearing liabilities		50,383			96	0.76			54,944			98	0.71
Noninterest bearing deposits		18,634							15,432
Other liabilities		2,203							1,698
Total liabilities		71,220							72,074
Equity
UNBC Stockholder's equity		10,708							9,913
Noncontrolling interests		269							278
Total equity		10,977							10,191
Total liabilities and equity	$	82,197						$	82,265

Net interest income/spread (taxable-equivalent basis)					608	3.07	%					620	3.18	%
Impact of noninterest bearing deposits						0.20							0.16
Impact of other noninterest bearing sources						0.04							0.02
Net interest margin						3.31							3.36
Less: taxable-equivalent adjustment					2							2
Net interest income				$	606						$	618


Refer to Exhibit 13 for footnote explanations.


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

	For the Nine Months Ended
	September 30, 2011							September 30, 2010
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽¹⁾		Rate ^{(1) (2)}		Balance			Expense ⁽¹⁾		Rate ^{(1) (2)}
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	16,035		$	476	3.97	%	$	14,722		$	506	4.59	%
Commercial mortgage		7,780			251	4.31			8,139			257	4.21
Construction		1,148			35	4.11			2,132			48	2.99
Lease financing		748			24	4.20			643			18	3.82
Residential mortgage		18,316			662	4.82			16,990			680	5.34
Home equity and other consumer loans		3,785			120	4.26			3,912			129	4.42
Total loans, excluding FDIC covered loans		47,812			1,568	4.38			46,538			1,638	4.70
FDIC covered loans		1,309			138	14.03			1,060			58	7.31
Total loans held for investment		49,121			1,706	4.64			47,598			1,696	4.76
Securities		20,421			405	2.64			23,037			411	2.38
Interest bearing deposits in banks		2,300			5	0.25			4,959			9	0.25
Federal funds sold and securities purchased under resale agreements		76			-	0.11			414			1	0.13
Trading account assets		151			1	0.84			202			2	1.37
Other earning assets		59			-	1.03			-			-	-
Total earning assets		72,128			2,117	3.92			76,210			2,119	3.71
Allowance for loan losses		(985	)						(1,414	)
Cash and due from banks		1,236							1,197
Premises and equipment, net		693							673
Other assets		7,798							7,520
Total assets	$	80,870						$	84,186
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	24,325			43	0.24		$	36,704			145	0.53
Savings		5,042			9	0.25			4,237			13	0.40
Time		11,847			107	1.21			11,090			76	0.92
Total interest bearing deposits		41,214			159	0.52			52,031			234	0.60
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,640			5	0.23			1,304			4	0.40
Long-term debt		6,443			108	2.24			4,611			81	2.36
Total borrowed funds		9,083			113	1.65			5,915			85	1.93
Total interest bearing liabilities		50,297			272	0.72			57,946			319	0.74
Noninterest bearing deposits		17,915							14,879
Other liabilities		1,971							1,449
Total liabilities		70,183							74,274
Equity
UNBC Stockholder's equity		10,417							9,693
Noncontrolling interests		270							219
Total equity		10,687							9,912
Total liabilities and equity	$	80,870						$	84,186

Net interest income/spread (taxable-equivalent basis)					1,845	3.20	%					1,800	2.97	%
Impact of noninterest bearing deposits						0.19							0.15
Impact of other noninterest bearing sources						0.02							0.03
Net interest margin						3.41							3.15
Less: taxable-equivalent adjustment					7							7
Net interest income				$	1,838						$	1,793


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

Net income attributable to UNBC	$	172			$	242			$	235			$	172			$	170			$	649			$	401
Net adjustments related to privatization transaction, net of tax		10				6				3				7				8				18				29
Net income attributable to UNBC, excluding impact of privatization transaction	$	182			$	248			$	238			$	179			$	178			$	667			$	430

Average total assets	$	82,197			$	80,334			$	80,056			$	80,182			$	82,265			$	80,870			$	84,186
Net adjustments related to privatization transaction		2,442				2,459				2,473				2,488				2,509				2,458				2,528
Average total assets, excluding impact of privatization transaction	$	79,755			$	77,875			$	77,583			$	77,694			$	79,756			$	78,412			$	81,658
Return on average assets ⁽²⁾		0.83		%		1.21		%		1.19		%		0.85		%		0.82		%		1.07		%		0.64		%
Return on average assets, excluding impact of privatization transaction ^{(2) (11)}		0.90				1.28				1.24				0.92				0.89				1.14				0.70

Average UNBC stockholder's equity	$	10,708			$	10,366			$	10,167			$	10,034			$	9,913			$	10,417			$	9,693
Net adjustments related to privatization transaction		2,385				2,390				2,396				2,401				2,405				2,390				2,409
Average UNBC stockholder's equity, excluding impact of privatization transaction	$	8,323			$	7,976			$	7,771			$	7,633			$	7,508			$	8,027			$	7,284
Return on average UNBC stockholder's equity ⁽²⁾		6.36		%		9.36		%		9.38		%		6.81		%		6.80		%		8.33		%		5.53		%
Return on average UNBC stockholder's equity, excluding impact of privatization transaction ^{(2) (11)}		8.65				12.45				12.41				9.32				9.43				11.11				7.89

Noninterest expense	$	603			$	578			$	615			$	701			$	562			$	1,796			$	1,671
Less: Foreclosed asset expense		4				2				3				4				6				8				7
Less: (Reversal of) provision for losses on off-balance sheet commitments		-				(18	)			(13	)			(2	)			(8	)			(31	)			(12	)
Less: Low income housing credit investment amortization expense		15				18				13				19				13				47				41
Less: Expenses of the consolidated VIEs		6				6				6				15				6				18				17
Less: Merger costs related to acquisitions		-				10				13				9				11				23				24
Less: Asset impairment charge		-				-				-				30				-				-				-
Net noninterest expense before privatization adjustments	$	578			$	560			$	593			$	626			$	534			$	1,731			$	1,594
Net adjustments related to privatization transaction		26				25				26				32				33				77				104
Net noninterest expense, excluding impact of privatization transaction (a)	$	552			$	535			$	567			$	594			$	501			$	1,654			$	1,490

Total revenue	$	791			$	854			$	858			$	882			$	836			$	2,503			$	2,465
Add: Net interest income taxable-equivalent adjustment		2				3				2				3				2				7				7
Total revenue, including taxable-equivalent adjustment		793				857				860				885				838				2,510				2,472
Accretion related to privatization-related fair value adjustments		10				16				21				21				18				47				56
Total revenue, excluding impact of privatization transaction (b)	$	783			$	841			$	839			$	864			$	820			$	2,463			$	2,416
Core efficiency ratio, excluding impact of privatization transaction (a)/(b) ⁽⁴⁾ ⁽¹¹⁾		70.41				63.74				67.47				68.83				61.13				67.13				61.68

Total UNBC stockholder's equity	$	10,900			$	10,667			$	10,355			$	10,125			$	10,134
Less: Goodwill		2,447				2,447				2,447				2,456				2,456
Less: Intangible assets		383				407				432				457				487
Less: Deferred tax liabilities related to goodwill and intangible assets		(140	)			(149	)			(159	)			(168	)			(180	)
Tangible common equity (c)	$	8,210			$	7,962			$	7,635			$	7,380			$	7,371
Tier 1 capital, determined in accordance with regulatory requirements	$	8,724			$	8,535			$	8,280			$	8,029			$	7,861
Less: Trust preferred securities		-				-				-				13				13
Tier 1 common equity (d)	$	8,724			$	8,535			$	8,280			$	8,016			$	7,848
Total assets	$	84,013			$	80,093			$	80,642			$	79,097			$	79,840
Less: Goodwill		2,447				2,447				2,447				2,456				2,456
Less: Intangible assets		383				407				432				457				487
Less: Deferred tax liabilities related to goodwill and intangible assets		(140	)			(149	)			(159	)			(168	)			(180	)
Tangible assets (e)	$	81,323			$	77,388			$	77,922			$	76,352			$	77,077
Risk-weighted assets, determined in accordance with regulatory requirements (f) ⁽⁷⁾	$	66,627			$	65,274			$	64,467			$	64,516			$	64,080
Tangible common equity ratio (c)/(e) ⁽⁵⁾		10.10		%		10.29		%		9.80		%		9.67		%		9.56		%
Tier 1 common capital ratio (d)/(f) ⁽⁶⁾		13.09				13.08				12.84				12.42				12.25

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, foreign time deposits and domestic time deposits greater than $250,000.
⁽⁴⁾		The core efficiency ratio, excluding impact of privatization, a non-GAAP financial measure, is net noninterest expense (noninterest expense excluding privatization-related expenses and fair value amortization/accretion, 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 for 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 September 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 $198 million, $251 million, $279 million, $312 million and $297 million that are 90 days or more past due and still accruing at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, which consist of FDIC covered loans accounted for in accordance with the accounting standards for purchased credit impaired loans.
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CONTACT:
UnionBanCal Corporation
Thomas Taggart, 415-765-2249
Corporate Communications
Michelle Crandall, 415-765-2780
Investor Relations

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