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

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8-K - UNIONBANCAL CORP. 8-K - MUFG Americas Holdings Corp	a50677512.htm

Exhibit 99.1

UnionBanCal Corporation Reports Second Quarter Net Income of $141 Million

Second Quarter Highlights:

On June 24, 2013, Union Bank, N.A. announced that it had completed the acquisition of PB Capital Corporation's $3.5 billion institutional commercial real estate (CRE) lending portfolio (PB Capital acquisition).
Net income for the second quarter was $141 million, down from $147 million for the prior quarter, and down from $187 million for the year-ago quarter.
Total loans held for investment, excluding purchased credit-impaired (PCI) loans, at June 30, 2013, were $64.4 billion, up from $59.8 billion at March 31, 2013, and up from $53.6 billion at June 30, 2012.
Core deposits at June 30, 2013, were $65.5 billion, up from $63.6 billion at March 31, 2013, and up from $53.4 billion at June 30, 2012.
Total provision for credit losses was a benefit of $5 million, compared with a provision of $12 million for the prior quarter, and a benefit of $15 million for the year-ago quarter.
Key asset quality metrics continued to be strong. Excluding PCI loans and Federal Deposit Insurance Corporation (FDIC) covered other real estate owned (OREO):
- Nonperforming assets at quarter-end were $521 million, or 0.52 percent of total assets, compared with $520 million, or 0.54 percent of total assets, at March 31, 2013.
- Net charge-offs were $10 million for the quarter, or an annualized 0.06 percent of average total loans held for investment, compared with $12 million for the prior quarter and $29 million a year ago.
Net interest margin was 3.00 percent, similar to 3.01 percent for the prior quarter, and down from 3.23 percent for the year-ago quarter.
Capital ratios remained strong:
- Tier 1 common capital ratio, measured using Basel I risk-weighted assets, was 11.47 percent at June 30, 2013, down 98 basis points from 12.45 percent at March 31, 2013.
- Tangible common equity ratio was 9.11 percent at June 30, 2013, down 94 basis points from 10.05 percent at March 31, 2013.

SAN FRANCISCO--(BUSINESS WIRE)--July 25, 2013--UnionBanCal Corporation (the Company), parent company of San Francisco-based Union Bank, N.A., today reported second quarter 2013 results. Net income for the quarter was $141 million, down from $147 million for the prior quarter, and down from $187 million for the year-ago quarter. Net income declined compared to the prior quarter primarily due to lower gains of the sale of securities, which were largely offset by higher net interest income on higher loan balances and a lower total provision for credit losses.

Summary of Second Quarter Results

Second Quarter Total Revenue

For second quarter 2013, total revenue (net interest income plus noninterest income) was $871 million, down $32 million compared with first quarter 2013. Net interest income increased 3 percent, and noninterest income decreased 20 percent. The net interest margin was 3.00 percent, down 1 basis point from 3.01 percent for the prior quarter.

Net interest income for second quarter 2013 was $666 million, up $18 million, or 3 percent, compared with first quarter 2013. The increase in net interest income was primarily due to higher commercial mortgage loan balances, mostly resulting from the PB Capital acquisition, and higher yields on commercial and industrial loans. The net interest margin was 3.00 percent, similar to 3.01 percent for the prior quarter, as lower yields on total loans and securities were mitigated by declining balances of lower-yielding interest bearing deposits in banks.

Average total loans held for investment, excluding PCI loans, increased $2.9 billion, or 5 percent, compared with first quarter 2013, primarily due to the PB Capital acquisition and organic growth in the residential mortgage and commercial and industrial loan portfolios. Average total deposits increased $1.1 billion, or 1 percent, during the quarter, primarily due to organic retail deposit growth. Average interest bearing deposits increased $0.8 billion, or 2 percent, and average noninterest bearing deposits increased $0.3 billion, or 1 percent.

For second quarter 2013, noninterest income was $205 million, down $50 million, or 20 percent, compared with first quarter 2013, primarily due to lower net gains on the sale of securities.

Compared to second quarter 2012, total revenue grew $37 million, with net interest income up 3 percent and noninterest income up 9 percent. Net interest income increased $20 million compared with the year-ago quarter, primarily due to loan growth, largely offset by a lower net interest margin. The net interest margin declined 23 basis points, primarily due to lower yields on loans and securities.

Average total loans held for investment, excluding PCI loans, increased $8.2 billion, or 15 percent, compared with second quarter 2012, primarily due to the acquisition of Pacific Capital Bancorp (PCBC) that was completed December 1, 2012; the PB Capital acquisition; and organic loan growth. Average total deposits increased $10.9 billion, primarily due to organic growth, with average interest bearing deposits up $6.6 billion, or 15 percent, and average noninterest bearing deposits up $4.3 billion, or 21 percent.

Noninterest income increased $17 million, or 9 percent, compared with second quarter 2012, primarily due to higher trust and investment management fees, which increased primarily due to higher fees on assets under management.

Second Quarter Noninterest Expense

Noninterest expense for second quarter 2013 was $702 million, down $11 million compared with first quarter 2013. Staff expense decreased $8 million, primarily reflecting annual seasonal factors. Non-staff expense decreased $3 million, primarily due to a $2 million reversal of provision for losses on off-balance sheet commitments, compared with a $15 million provision for losses on off-balance sheet commitments in first quarter 2013.

Noninterest expense for second quarter 2013 was up $103 million, or 17 percent, compared with second quarter 2012. Staff expense increased $62 million, primarily due to acquisition-related activity. Non-staff expense increased primarily due to one-time costs associated with the PCBC acquisition. The provision for losses on off-balance sheet commitments was a benefit of $2 million for second quarter 2013, compared with a benefit of $1 million for second quarter 2012.

Taxes

The effective tax rate for second quarter 2013 was 20 percent, compared with an effective tax rate of 26 percent for first quarter 2013. The decrease in the quarterly effective tax rate was primarily due to a change in the 2013 estimated annual effective tax rate, which was caused by the larger impact of low-income housing and alternative energy income tax benefits on lower pre-tax income.

Balance Sheet

At June 30, 2013, the Company had total assets of $102.3 billion, up $5.3 billion compared with March 31, 2013, primarily reflecting the PB Capital acquisition. At June 30, 2013, total deposits were $77.3 billion, up $3.3 billion compared with March 31, 2013, primarily reflecting organic retail deposit growth. Core deposits at June 30, 2013, were $65.5 billion, up $1.9 billion, or 3 percent, compared with March 31, 2013.

Credit Quality

Credit quality continued to be strong during the second quarter of 2013, reflected by lower levels of criticized loans, lower net charge-offs excluding PCI loans, and stable nonperforming assets excluding PCI loans and FDIC covered OREO compared with prior quarter.

Excluding PCI loans and FDIC covered OREO, nonperforming assets ended the quarter at $521 million, or 0.52 percent of total assets; compared with $520 million, or 0.54 percent of total assets, at March 31, 2013; and $539 million, or 0.62 percent of total assets, at June 30, 2012.

Excluding PCI loans, net charge-offs were $10 million for second quarter 2013, or an annualized 0.06 percent of average total loans. This was down from net charge-offs of $12 million, or an annualized 0.08 percent of average total loans, in first quarter 2013; and down from net charge-offs of $29 million, or an annualized 0.21 percent of average total loans, for second quarter 2012.

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 2013, the provision for loan losses was a benefit of $3 million and the provision for losses on off-balance sheet commitments was a benefit of $2 million, for a total provision for credit losses benefit of $5 million for second quarter 2013. This compares with a total provision for credit losses of $12 million for first quarter 2013. The primary driver of the lower total provision was improved credit quality in the legacy portfolio.

The allowance for credit losses as a percent of total loans, excluding PCI loans, was 1.18 percent at June 30, 2013, compared with 1.30 percent at March 31, 2013, and 1.46 percent at June 30, 2012. The allowance for credit losses as a percent of nonaccrual loans, excluding PCI loans, was 153 percent at June 30, 2013, compared with 158 percent at March 31, 2013, and 153 percent at June 30, 2012.

Capital

During the second quarter of 2013, Union Bank, N.A., issued $750 million of subordinated debt to the Company’s shareholder, The Bank of Tokyo-Mitsubishi UFJ, Ltd. The subordinated debt qualifies as Tier 2 regulatory capital under federal banking agency risk-based capital guidelines.

At June 30, 2013, the Company’s stockholder’s equity was $12.4 billion, down $195 million, or 2 percent, from March 31, 2013, primarily due to higher unrealized losses on securities available for sale. Tangible common equity was $9.0 billion, down $417 million, or 4 percent, from March 31, 2013. The Company’s tangible common equity ratio was 9.11 percent at June 30, 2013, down 94 basis points from 10.05 percent at March 31, 2013, primarily reflecting the PB Capital acquisition. The Basel I Tier 1 common and Tier 1 risk-based capital ratios were 11.47 percent and 11.55 percent, respectively, at June 30, 2013. Additionally, the Basel I Total risk-based capital ratio was 13.63 percent at June 30, 2013.

Non-GAAP Financial Measures

This press release contains certain references to financial measures identified as excluding PCI loans, FDIC covered OREO, privatization transaction impact, foreclosed asset expense and other credit costs, (reversal of) provision for losses on off-balance sheet commitments, productivity initiative costs and gains, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger costs related to acquisitions, debt termination fees from balance sheet repositioning, or intangible asset amortization, 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 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 $102.3 billion at June 30, 2013. Its primary subsidiary, Union Bank, N.A., provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 422 branches in California, Washington, Oregon, Texas, Illinois, and New York as well as two international offices, on June 30, 2013. 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 June 30, 2013 from
	As of and for the Three Months Ended															Percent Change to June 30, 2013 from
	June 30,			March 31,			December 31,			September 30,			June 30,			March 31,		June 30,
(Dollars in millions)	2013			2013			2012			2012			2012			2013		2012
Results of operations:
Net interest income	$	666		$	648		$	655		$	641		$	646		3	%	3	%
Noninterest income		205			255			234			202			188		(20)		9
Total revenue		871			903			889			843			834		(4)		4
Noninterest expense		702			713			715			638			599		(2)		17
Pre-tax, pre-provision income ⁽¹⁾		169			190			174			205			235		(11)		(28)
(Reversal of) provision for loan losses		(3)			(3)			(5)			45			(14)		-		(79)
Income before income taxes and including
noncontrolling interests		172			193			179			160			249		(11)		(31)
Income tax expense		34			50			60			42			67		(32)		(49)
Net income including noncontrolling interests		138			143			119			118			182		(3)		(24)
Deduct: Net loss from noncontrolling interests		3			4			4			6			5		(25)		(40)
Net income attributable to
UnionBanCal Corporation (UNBC)	$	141		$	147		$	123		$	124		$	187		(4)		(25)

Balance sheet (end of period):
Total assets	$	102,261		$	96,959		$	96,992		$	88,185		$	87,939		5		16
Total securities		24,415			22,816			22,455			22,089			22,890		7		7
Total loans held for investment		65,843			60,882			60,034			55,410			54,291		8		21
Core deposits ⁽²⁾		65,533			63,585			63,769			55,141			53,378		3		23
Total deposits		77,310			73,990			74,255			65,143			63,443		4		22
Long-term debt		6,058			5,314			5,622			5,540			6,444		14		(6)
UNBC stockholder's equity		12,399			12,594			12,491			12,437			12,076		(2)		3

Balance sheet (period average):
Total assets	$	98,714		$	96,649		$	92,051		$	87,881		$	89,479		2		10
Total securities		23,183			21,824			21,903			22,496			24,223		6		(4)
Total loans held for investment		63,673			60,553			57,242			55,285			54,937		5		16
Earning assets		89,292			87,055			82,776			79,137			80,625		3		11
Total deposits		75,350			74,256			69,601			64,420			64,499		1		17
UNBC stockholder's equity		12,599			12,584			12,559			12,209			11,905		-		6

Performance ratios:
Return on average assets ⁽³⁾		0.57	%		0.61	%		0.54	%		0.56	%		0.84	%
Return on average UNBC stockholder's equity ⁽³⁾		4.49			4.67			3.93			4.03			6.32
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}		0.66			0.72			0.68			0.62			0.90
Return on average UNBC stockholder's equity excluding the impact of
privatization transaction and merger costs related to acquisitions ^{(3) (4)}		6.12			6.62			5.93			5.38			8.22
Efficiency ratio ⁽⁵⁾		80.55			78.89			80.45			75.61			71.83
Adjusted efficiency ratio ⁽⁶⁾		69.60			67.76			70.29			68.37			66.18
Net interest margin ^{(3) (7)}		3.00			3.01			3.17			3.25			3.23

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁸⁾		11.55	%		12.54	%		12.44	%		13.77	%		13.78	%
Total risk-based capital ratio ⁽⁸⁾		13.63			14.02			13.93			15.51			15.54
Leverage ratio ⁽⁸⁾		10.36			10.70			11.18			12.03			11.58
Tier 1 common capital ratio ^{(8) (9)}		11.47			12.45			12.35			13.77			13.78
Tangible common equity ratio ⁽¹⁰⁾		9.11			10.05			9.92			11.46			11.04



Refer to Exhibit 14 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, 2013 from
	June 30,			June 30,			June 30,
(Dollars in millions)	2013			2012			2012
Results of operations:
Net interest income	$	1,314		$	1,287		2	%
Noninterest income		460			402		14
Total revenue		1,774			1,689		5
Noninterest expense		1,415			1,213		17
Pre-tax, pre-provision income ⁽¹⁾		359			476		(25)
(Reversal of) provision for loan losses		(6)			(15)		(60)
Income before income taxes and including
noncontrolling interests		365			491		(26)
Income tax expense		84			118		(29)
Net income including noncontrolling interests		281			373		(25)
Deduct: Net loss from noncontrolling interests		7			9		(22)
Net income attributable to UNBC	$	288		$	382		(25)

Balance sheet (end of period):
Total assets	$	102,261		$	87,939		16
Total securities		24,415			22,890		7
Total loans held for investment		65,843			54,291		21
Core deposits ⁽²⁾		65,533			53,378		23
Total deposits		77,310			63,443		22
Long-term debt		6,058			6,444		(6)
UNBC stockholder's equity		12,399			12,076		3

Balance sheet (period average):
Total assets	$	97,687		$	89,464		9
Total securities		22,507			24,244		(7)
Total loans held for investment		62,122			54,543		14
Earning assets		88,179			80,564		9
Total deposits		74,807			64,462		16
UNBC stockholder's equity		12,591			11,763		7

Performance ratios:
Return on average assets ⁽³⁾		0.59	%		0.86	%
Return on average UNBC stockholder's equity ⁽³⁾		4.58			6.53
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}		0.69			0.91
Return on average stockholders' equity excluding the impact of
privatization transaction and merger costs related to acquisitions ^{(3) (4)}		6.39			8.47
Efficiency ratio ⁽⁵⁾		79.70			71.84
Adjusted efficiency ratio ⁽⁶⁾		68.66			67.38
Net interest margin ^{(3) (7)}		3.00			3.28

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁸⁾		11.55	%		13.78	%
Total risk-based capital ratio ⁽⁸⁾		13.63			15.54
Leverage ratio ⁽⁸⁾		10.36			11.58
Tier 1 common capital ratio ^{(8) (9)}		11.47			13.78
Tangible common equity ratio ⁽¹⁰⁾		9.11			11.04



Refer to Exhibit 14 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, 2013 from
	June 30,			March 31,			December 31,			September 30,			June 30,			March 31,		June 30,
(Dollars in millions)	2013			2013			2012			2012			2012			2013		2012

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(3)		$	(3)		$	(3)		$	43		$	(13)		-	%	(77)	%
(Reversal of) provision for FDIC covered loan losses not subject to
FDIC indemnification		-			-			(2)			2			(1)		-		100
(Reversal of) provision for losses on off-balance sheet commitments		(2)			15			(10)			(4)			(1)		113		(100)
Total (reversal of) provision for credit losses	$	(5)		$	12		$	(15)		$	41		$	(15)		142		(67)
Net loans charged off	$	8		$	14		$	5		$	42		$	31		(43)		(74)
Nonperforming assets		589			607			616			637			658		(3)		(10)
Criticized loans held for investment ⁽¹¹⁾		1,362			1,545			1,277			1,520			1,443		(12)		(6)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment		0.95	%		1.05	%		1.09	%		1.21	%		1.21	%
Nonaccrual loans		120.11			122.62			129.47			125.12			118.63
Allowance for credit losses to ⁽¹²⁾:
Total loans held for investment		1.16			1.27			1.28			1.43			1.45
Nonaccrual loans		146.34			149.24			152.67			148.80			142.20
Net loans charged off to average total loans held for investment ⁽³⁾		0.05			0.10			0.03			0.30			0.22
Nonperforming assets to total loans held for investment
and Other Real Estate Owned (OREO)		0.89			1.00			1.02			1.15			1.21
Nonperforming assets to total assets		0.58			0.63			0.63			0.72			0.75
Nonaccrual loans to total loans held for investment		0.79			0.85			0.84			0.96			1.02

Excluding purchased credit-impaired loans and FDIC covered OREO ⁽¹³⁾:
Allowance for loan losses to:
Total loans held for investment		0.97	%		1.06	%		1.11	%		1.20	%		1.22	%
Nonaccrual loans		125.69			129.56			137.40			130.29			127.22
Allowance for credit losses to ⁽¹²⁾:
Total loans held for investment		1.18			1.30			1.31			1.43			1.46
Nonaccrual loans		153.18			157.75			162.05			155.39			152.64
Net loans charged off to average total loans held for investment ⁽³⁾		0.06			0.08			0.01			0.29			0.21
Nonperforming assets to total loans held for investment
and OREO		0.81			0.87			0.88			0.96			1.01
Nonperforming assets to total assets		0.52			0.54			0.54			0.60			0.62
Nonaccrual loans to total loans held for investment		0.77			0.82			0.81			0.92			0.96


	As of and for the Six Months Ended						Percent Change to June 30, 2013
	June 30,			June 30,			Percent Change to June 30, 2013
(Dollars in millions)	2013			2012			from June 30, 2012

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(6)		$	(12)			50	%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		-			(3)			100
(Reversal of) provision for losses on off-balance sheet commitments		13			(3)		nm
Total (reversal of) provision for credit losses	$	7		$	(18)			139
Net loans charged off	$	22		$	84			(74)
Nonperforming assets		589			658			(10)

Credit Ratios:
Net loans charged off to average total loans held for investment ⁽³⁾		0.07	%		0.31	%
Nonperforming assets to total assets		0.58			0.75

Excluding purchased credit-impaired loans and FDIC covered OREO ⁽¹³⁾:
Net loans charged off to average total loans held for investment ⁽³⁾		0.07	%		0.31	%
Nonperforming assets to total assets		0.52			0.62

Refer to Exhibit 14 for footnote explanations.

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

	For the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in millions)	2013		2013		2012		2012		2012
Interest Income
Loans	$	649	$	629	$	629	$	608	$	608
Securities		118		118		122		129		134
Other		2		3		3		1		-
Total interest income		769		750		754		738		742

Interest Expense
Deposits		67		65		62		56		57
Commercial paper and other short-term borrowings		1		1		1		2		3
Long-term debt		35		36		36		39		36
Total interest expense		103		102		99		97		96

Net Interest Income		666		648		655		641		646
(Reversal of) provision for loan losses		(3)		(3)		(5)		45		(14)
Net interest income after (reversal of) provision for loan losses		669		651		660		596		660

Noninterest Income
Service charges on deposit accounts		52		53		51		51		52
Trust and investment management fees		38		35		33		29		27
Trading account activities		24		8		33		26		25
Securities gains, net		27		96		20		41		28
Credit facility fees		26		26		27		27		26
Merchant banking fees		23		16		23		24		19
Brokerage commissions and fees		12		12		12		11		11
Card processing fees, net		9		9		8		8		8
Other, net		(6)		-		27		(15)		(8)
Total noninterest income		205		255		234		202		188

Noninterest Expense
Salaries and employee benefits		413		421		408		356		351
Net occupancy and equipment		84		75		70		65		64
Professional and outside services		62		58		81		54		47
Intangible asset amortization		17		16		19		20		21
Regulatory assessments		20		20		17		14		16
(Reversal of) provision for losses on
off-balance sheet commitments		(2)		15		(10)		(4)		(1)
Other		108		108		130		133		101
Total noninterest expense		702		713		715		638		599

Income before income taxes and including
noncontrolling interests		172		193		179		160		249
Income tax expense		34		50		60		42		67

Net Income including Noncontrolling Interests		138		143		119		118		182
Deduct: Net loss from noncontrolling interests		3		4		4		6		5
Net Income attributable to UNBC	$	141	$	147	$	123	$	124	$	187

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

	For the Six Months Ended
	June 30,		June 30,
(Dollars in millions)	2013		2012
Interest Income
Loans	$	1,278	$	1,202
Securities		236		276
Other		5		2
Total interest income		1,519		1,480

Interest Expense
Deposits		132		115
Commercial paper and other short-term borrowings		2		6
Long-term debt		71		72
Total interest expense		205		193

Net Interest Income		1,314		1,287
(Reversal of) provision for loan losses		(6)		(15)
Net interest income after (reversal of) provision for loan losses		1,320		1,302

Noninterest Income
Service charges on deposit accounts		105		107
Trust and investment management fees		73		57
Trading account activities		32		56
Securities gains, net		123		47
Credit facility fees		52		51
Merchant banking fees		39		42
Brokerage commissions and fees		24		21
Card processing fees, net		18		16
Other, net		(6)		5
Total noninterest income		460		402

Noninterest Expense
Salaries and employee benefits		834		715
Net occupancy and equipment		159		132
Professional and outside services		120		93
Intangible asset amortization		33		42
Regulatory assessments		40		34
(Reversal of) provision for losses on
off-balance sheet commitments		13		(3)
Other		216		200
Total noninterest expense		1,415		1,213

Income before income taxes and including
noncontrolling interests		365		491
Income tax expense		84		118

Net Income including Noncontrolling Interests		281		373

Deduct: Net loss from noncontrolling interests		7		9
Net Income attributable to UNBC	$	288	$	382

UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
Exhibit 6


	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in millions except for per share amount)	2013		2013		2012		2012		2012
Assets
Cash and due from banks	$	1,405	$	1,265	$	1,845	$	1,237	$	1,396
Interest bearing deposits in banks		1,899		3,776		3,477		1,703		1,479
Federal funds sold and securities purchased under resale agreements		50		50		169		32		46
Total cash and cash equivalents		3,354		5,091		5,491		2,972		2,921
Trading account assets (includes $4 at June 30, 2013; $40 at March 31,
2013; $1 at December 31, 2012; $3 at September 30, 2012; and $34
at June 30, 2012 of assets pledged as collateral)		844		1,119		1,208		1,236		1,237
Securities available for sale		23,510		21,801		21,352		20,907		20,545
Securities held to maturity (Fair value: June 30, 2013, $891;
March 31, 2013, $1,036; December 31, 2012, $1,135; September 30,
2012, $1,224; and June 30, 2012, $2,536)		905		1,015		1,103		1,182		2,345
Loans held for investment		65,843		60,882		60,034		55,410		54,291
Allowance for loan losses		(625)		(638)		(653)		(668)		(656)
Loans held for investment, net		65,218		60,244		59,381		54,742		53,635
Premises and equipment, net		699		707		710		637		649
Intangible assets, net		322		339		376		298		318
Goodwill		3,186		2,952		2,942		2,457		2,457
FDIC indemnification asset		233		285		338		401		449
Other assets		3,990		3,406		4,091		3,353		3,383
Total assets	$	102,261	$	96,959	$	96,992	$	88,185	$	87,939

Liabilities
Deposits:
Noninterest bearing	$	25,655	$	24,679	$	25,478	$	21,490	$	20,777
Interest bearing		51,655		49,311		48,777		43,653		42,666
Total deposits		77,310		73,990		74,255		65,143		63,443
Commercial paper and other short-term borrowings		3,792		2,228		1,363		2,091		3,035
Long-term debt		6,058		5,314		5,622		5,540		6,444
Trading account liabilities		566		742		895		952		976
Other liabilities		1,866		1,821		2,102		1,763		1,712
Total liabilities		89,592		84,095		84,237		75,489		75,610

Equity
UNBC Stockholder's Equity:
Common stock, par value $1 per share:
Authorized 300,000,000 shares; 136,330,830 shares issued and
outstanding as of June 30, 2013, March 31, 2013, December 31,
2012, September 30, 2012, and June 30, 2012		136		136		136		136		136
Additional paid-in capital		5,979		5,997		5,994		5,989		5,985
Retained earnings		7,163		7,022		6,875		6,752		6,628
Accumulated other comprehensive loss		(879)		(561)		(514)		(440)		(673)
Total UNBC stockholder's equity		12,399		12,594		12,491		12,437		12,076
Noncontrolling interests		270		270		264		259		253
Total equity		12,669		12,864		12,755		12,696		12,329
Total liabilities and equity	$	102,261	$	96,959	$	96,992	$	88,185	$	87,939

UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 7


	For the Three Months Ended
	June 30, 2013						March 31, 2013
(Dollars in millions)	Average Balance		Interest Income/ Expense ⁽⁷⁾		Average Yield/ Rate ⁽³⁾⁽⁷⁾		Average Balance		Interest Income/ Expense ⁽⁷⁾		Average Yield/ Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁴⁾
Commercial and industrial	$	21,701	$	185	3.42	%	$	21,341	$	177	3.37	%
Commercial mortgage		11,851		112	3.79			9,898		101	4.10
Construction		800		7	3.30			650		8	5.21
Lease financing		1,056		9	3.53			1,062		7	2.49
Residential mortgage		23,428		220	3.77			22,858		222	3.88
Home equity and other consumer loans		3,500		33	3.85			3,602		34	3.84
Loans, before purchased credit-impaired loans		62,336		566	3.64			59,411		549	3.72
Purchased credit-impaired loans		1,337		83	24.69			1,142		80	28.33
Total loans held for investment		63,673		649	4.08			60,553		629	4.19
Securities		23,183		122	2.11			21,824		121	2.21
Interest bearing deposits in banks		1,923		1	0.25			4,223		3	0.25
Federal funds sold and securities
purchased under resale agreements		123		-	0.16			171		-	0.19
Trading account assets		162		-	0.36			151		-	0.29
Other earning assets		228		1	0.53			133		-	0.64
Total earning assets		89,292		773	3.47			87,055		753	3.48
Allowance for loan losses		(642)						(653)
Cash and due from banks		1,355						1,399
Premises and equipment, net		704						705
Other assets		8,005						8,143
Total assets	$	98,714					$	96,649
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	32,296		26	0.32		$	31,705		22	0.28
Savings		5,666		2	0.13			5,855		2	0.14
Time		12,710		39	1.25			12,314		41	1.34
Total interest bearing deposits		50,672		67	0.53			49,874		65	0.53
Commercial paper and other short-term borrowings ⁽¹⁵⁾		3,224		1	0.18			1,837		1	0.21
Long-term debt		5,326		35	2.64			5,406		36	2.68
Total borrowed funds		8,550		36	1.71			7,243		37	2.05
Total interest bearing liabilities		59,222		103	0.70			57,117		102	0.72
Noninterest bearing deposits		24,678						24,382
Other liabilities		1,945						2,302
Total liabilities		85,845						83,801
Equity
UNBC Stockholder's equity		12,599						12,584
Noncontrolling interests		270						264
Total equity		12,869						12,848
Total liabilities and equity	$	98,714					$	96,649

Net interest income/spread
(taxable-equivalent basis)				670	2.77	%				651	2.76	%
Impact of noninterest bearing deposits					0.20						0.21
Impact of other noninterest bearing sources					0.03						0.04
Net interest margin					3.00						3.01
Less: taxable-equivalent adjustment				4						3
Net interest income			$	666					$	648



Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries Net Interest Income (Unaudited)
Exhibit 8

	For the Three Months Ended
	June 30, 2013						June 30, 2012
(Dollars in millions)	Average Balance		Interest Income/ Expense ⁽⁷⁾		Average Yield/ Rate ⁽³⁾⁽⁷⁾		Average Balance		Interest Income/ Expense ⁽⁷⁾		Average Yield/ Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁴⁾
Commercial and industrial	$	21,701	$	185	3.42	%	$	20,155	$	181	3.60	%
Commercial mortgage		11,851		112	3.79			8,276		82	3.97
Construction		800		7	3.30			709		8	4.67
Lease financing		1,056		9	3.53			1,015		11	4.33
Residential mortgage		23,428		220	3.77			20,357		220	4.31
Home equity and other consumer loans		3,500		33	3.85			3,634		35	3.87
Loans, before purchased credit-impaired loans		62,336		566	3.64			54,146		537	3.97
Purchased credit-impaired loans		1,337		83	24.69			791		73	37.42
Total loans held for investment		63,673		649	4.08			54,937		610	4.45
Securities		23,183		122	2.11			24,223		135	2.22
Interest bearing deposits in banks		1,923		1	0.25			1,093		-	0.26
Federal funds sold and securities
purchased under resale agreements		123		-	0.16			64		-	0.22
Trading account assets		162		-	0.36			175		-	0.57
Other earning assets		228		1	0.53			133		-	0.21
Total earning assets		89,292		773	3.47			80,625		745	3.71
Allowance for loan losses		(642)						(709)
Cash and due from banks		1,355						1,313
Premises and equipment, net		704						659
Other assets		8,005						7,591
Total assets	$	98,714					$	89,479
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	32,296		26	0.32		$	25,646		14	0.22
Savings		5,666		2	0.13			5,311		2	0.16
Time		12,710		39	1.25			13,119		41	1.26
Total interest bearing deposits		50,672		67	0.53			44,076		57	0.52
Commercial paper and other short-term borrowings ⁽¹⁵⁾		3,224		1	0.18			4,691		3	0.26
Long-term debt		5,326		35	2.64			5,679		36	2.54
Total borrowed funds		8,550		36	1.71			10,370		39	1.51
Total interest bearing liabilities		59,222		103	0.70			54,446		96	0.71
Noninterest bearing deposits		24,678						20,423
Other liabilities		1,945						2,445
Total liabilities		85,845						77,314
Equity
UNBC Stockholder's equity		12,599						11,905
Noncontrolling interests		270						260
Total equity		12,869						12,165
Total liabilities and equity	$	98,714					$	89,479

Net interest income/spread
(taxable-equivalent basis)				670	2.77	%				649	3.00	%
Impact of noninterest bearing deposits					0.20						0.19
Impact of other noninterest bearing sources					0.03						0.04
Net interest margin					3.00						3.23
Less: taxable-equivalent adjustment				4						3
Net interest income			$	666					$	646



Refer to Exhibit 14 for footnote explanations.

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

			For the Six Months Ended
			June 30, 2013							June 30, 2012
(Dollars in millions)			Average Balance			Interest Income/ Expense ⁽⁷⁾		Average Yield/ Rate ⁽³⁾⁽⁷⁾		Average Balance			Interest Income/ Expense ⁽⁷⁾		Average Yield/ Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁴⁾
	Commercial and industrial		$	21,522		$	362	3.39	%	$	19,902		$	356	3.59	%
	Commercial mortgage			10,880			213	3.93			8,275			167	4.04
	Construction			725			15	4.15			756			16	4.28
	Lease financing			1,059			16	3.01			1,018			22	4.29
	Residential mortgage			23,145			442	3.82			20,080			436	4.34
	Home equity and other consumer loans			3,551			67	3.84			3,663			71	3.90
		Loans, before purchased credit-impaired loans		60,882			1,115	3.68			53,694			1,068	3.98
	Purchased credit-impaired loans			1,240			163	26.36			849			139	32.94
		Total loans held for investment		62,122			1,278	4.13			54,543			1,207	4.43
Securities				22,507			243	2.16			24,244			277	2.29
Interest bearing deposits in banks				2,986			4	0.25			1,412			2	0.26
Federal funds sold and securities
	purchased under resale agreements			147			-	0.18			63			-	0.22
Trading account assets				156			-	0.33			163			-	0.59
Other earning assets				261			1	0.46			139			-	0.16
		Total earning assets		88,179			1,526	3.47			80,564			1,486	3.70
Allowance for loan losses				(647	)						(737	)
Cash and due from banks				1,377							1,320
Premises and equipment, net				704							666
Other assets				8,074							7,651
		Total assets	$	97,687						$	89,464
Liabilities
Interest bearing deposits:
	Transaction and money market accounts		$	32,002			48	0.30		$	25,627			28	0.22
	Savings			5,760			4	0.13			5,295			4	0.16
	Time			12,514			80	1.29			13,281			83	1.25
		Total interest bearing deposits		50,276			132	0.53			44,203			115	0.52
Commercial paper and other short-term borrowings ⁽¹⁵⁾				2,534			2	0.19			4,513			6	0.28
Long-term debt				5,366			71	2.66			5,879			72	2.47
		Total borrowed funds		7,900			73	1.86			10,392			78	1.52
		Total interest bearing liabilities		58,176			205	0.71			54,595			193	0.71
Noninterest bearing deposits				24,531							20,259
Other liabilities				2,122							2,584
		Total liabilities		84,829							77,438
Equity
UNBC Stockholder's equity				12,591							11,763
Noncontrolling interests				267							263
		Total equity		12,858							12,026
		Total liabilities and equity	$	97,687						$	89,464

Net interest income/spread
	(taxable-equivalent basis)						1,321	2.76	%					1,293	2.99	%
Impact of noninterest bearing deposits								0.21							0.19
Impact of other noninterest bearing sources								0.03							0.03
Net interest margin								3.00							3.21
Less: taxable-equivalent adjustment							7							6
		Net interest income				$	1,314						$	1,287



Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Loans and Nonperforming Assets (Unaudited)
Exhibit 10

(Dollars in millions)						June 30, 2013		March 31, 2013		December 31, 2012		September 30, 2012		June 30, 2012

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial				$	22,266	$	21,433	$	20,827	$	20,124	$	19,465
		Commercial mortgage					13,008		9,918		9,939		8,293		8,188
		Construction					808		659		627		678		613
		Lease financing					984		1,060		1,104		962		994
			Total commercial portfolio				37,066		33,070		32,497		30,057		29,260

		Residential mortgage					23,835		23,146		22,705		21,335		20,729
		Home equity and other consumer loans					3,456		3,542		3,647		3,494		3,604
			Total consumer portfolio				27,291		26,688		26,352		24,829		24,333
				Loans held for investment, before purchased credit-impaired loans			64,357		59,758		58,849		54,886		53,593
		Purchased credit-impaired loans					1,486		1,124		1,185		524		698

				Total loans held for investment		$	65,843	$	60,882	$	60,034	$	55,410	$	54,291

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial				$	69	$	49	$	48	$	36	$	75
		Commercial mortgage					62		57		65		91		101

			Total commercial portfolio				131		106		113		127		176

		Residential mortgage					315		326		306		325		293
		Home equity and other consumer loans					50		59		56		52		44
			Total consumer portfolio				365		385		362		377		337

				Nonaccrual loans, before purchased credit-impaired loans			496		491		475		504		513
		Purchased credit-impaired loans					24		29		30		30		40
				Total nonaccrual loans			520		520		505		534		553

	OREO						25		29		45		22		26
	FDIC covered OREO						44		58		66		81		79

				Total nonperforming assets		$	589	$	607	$	616	$	637	$	658

				Total nonperforming assets, excluding purchased credit-impaired
					loans and FDIC covered OREO	$	521	$	520	$	520	$	526	$	539

	Loans 90 days or more past due and still accruing⁽¹⁶⁾					$	7	$	3	$	1	$	1	$	1


Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Allowance for Credit Losses (Unaudited)
Exhibit 11

						As of and for the Three Months Ended
(Dollars in millions)						June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012

Analysis of Allowance for Credit Losses
	Balance, beginning of period					$	638		$	653		$	668		$	656		$	704

	(Reversal of) provision for loan losses, excluding FDIC covered loans						(3	)		(3	)		(3	)		43			(13	)
	(Reversal of) provision for FDIC covered loan losses not subject to
		FDIC indemnification					-			-			(2	)		2			(1	)
	Increase (decrease) in allowance covered by FDIC indemnification						(2	)		2			(4	)		8			(3	)
	Other						-			-			(1	)		1			-

	Loans charged off:
		Commercial and industrial					(11	)		(1	)		(6	)		(12	)		(10	)
		Commercial mortgage					(1	)		(2	)		(3	)		(1	)		(5	)
		Construction					-			-			-			-			(11	)
			Total commercial portfolio				(12	)		(3	)		(9	)		(13	)		(26	)

		Residential mortgage					(3	)		(7	)		(6	)		(22	)		(9	)
		Home equity and other consumer loans					(5	)		(6	)		(9	)		(19	)		(7	)
			Total consumer portfolio				(8	)		(13	)		(15	)		(41	)		(16	)

		FDIC covered loans					-			(3	)		(8	)		(3	)		(2	)
				Total loans charged off			(20	)		(19	)		(32	)		(57	)		(44	)

	Recoveries of loans previously charged off:
		Commercial and industrial					7			3			6			7			8
		Commercial mortgage					2			-			10			5			-
		Construction					-			-			2			1			5
		Lease financing					-			-			5			-			-
			Total commercial portfolio				9			3			23			13			13

		Home equity and other consumer loans					1			1			1			1			-
			Total consumer portfolio				1			1			1			1			-

		FDIC covered loans					2			1			3			1			-
				Total recoveries of loans previously charged off			12			5			27			15			13
					Net loans charged off		(8	)		(14	)		(5	)		(42	)		(31	)

	Ending balance of allowance for loan losses						625			638			653			668			656
	Allowance for losses on off-balance sheet commitments						136			138			117			126			130
	Total allowance for credit losses					$	761		$	776		$	770		$	794		$	786

Components of allowance for loan losses:
	Allowance for loan losses, excluding allowance on purchased
		credit-impaired loans				$	624		$	637		$	652		$	656		$	652
	Allowance for loan losses on purchased credit-impaired loans						1			1			1			12			4
	Total allowance for loan losses					$	625		$	638		$	653		$	668		$	656

UnionBanCal Corporation and Subsidiaries
Securities Available for Sale (Unaudited)
Exhibit 12


									Fair Value		Fair Value
	June 30, 2013				March 31, 2013				Amount Change from		% Change from
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		March 31, 2013		March 31, 2013

U.S. government sponsored agencies	$	362	$	364	$	468	$	472	$	(108)	(23)	%
Residential mortgage-backed securities:
U.S. government and government sponsored agencies		14,930		14,673		13,172		13,281		1,392	10
Privately issued		330		328		358		362		(34)	(9)
Commercial mortgage-backed securities		3,904		3,750		3,500		3,563		187	5
Collateralized loan obligations		2,414		2,445		2,296		2,302		143	6
Asset-backed and other		79		80		99		100		(20)	(20)
Asset Liability Management securities		22,019		21,640		19,893		20,080		1,560	8
Other debt securities:
Direct bank purchase bonds		1,708		1,703		1,557		1,532		171	11
Other		155		152		154		158		(6)	(4)
Equity securities		15		15		30		31		(16)	(52)
Total securities available for sale	$	23,897	$	23,510	$	21,634	$	21,801	$	1,709	8	%

UnionBanCal Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures (Unaudited)
Exhibit 13

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, 2013				March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012				June 30, 2013				June 30, 2012

Net income attributable to UNBC	$	141			$	147			$	123			$	124			$	187			$	288			$	382
Adjustments for merger costs related to acquisitions, net of tax		27				24				26				3				2				51				2
Net adjustments for privatization transaction, net of tax		(8	)			(1	)			2				5				7				(9	)			13
Net income attributable to UNBC, excluding impact of
privatization transaction and merger costs related to acquisitions	$	160			$	170			$	151			$	132			$	196			$	330			$	397

Average total assets	$	98,714			$	96,649			$	92,051			$	87,881			$	89,479			$	97,687			$	89,464
Net adjustments related to privatization transaction		2,318				2,330				2,345				2,359				2,377				2,324				2,385
Average total assets, excluding impact of privatization transaction	$	96,396			$	94,319			$	89,706			$	85,522			$	87,102			$	95,363			$	87,079
Return on average assets ⁽³⁾		0.57		%		0.61		%		0.54		%		0.56		%		0.84		%		0.59		%		0.86		%
Return on average assets, excluding impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}		0.66				0.72				0.68				0.62				0.90				0.69				0.91

Average UNBC stockholder's equity	$	12,599			$	12,584			$	12,559			$	12,209			$	11,905			$	12,591			$	11,763
Adjustments for merger costs related to acquisitions		(64	)			(48	)			(15	)			(5	)			(2	)			(80	)			(1	)
Net adjustments for privatization transaction		2,337				2,353				2,360				2,366				2,371				2,345				2,373
Average UNBC stockholder's equity, excluding impact of
privatization transaction and merger costs related to acquisitions	$	10,326			$	10,279			$	10,214			$	9,848			$	9,536			$	10,326			$	9,391
Return on average UNBC stockholder's equity ⁽³⁾		4.49		%		4.67		%		3.93		%		4.03		%		6.32		%		4.58		%		6.50		%
Return on average UNBC stockholder's equity, excluding impact of
privatization transaction and merger costs related to acquisitions ^{(3) (4)}		6.12				6.62				5.93				5.38				8.22				6.39				8.47

Noninterest expense	$	702			$	713			$	715			$	638			$	599			$	1,415			$	1,213
Less: Foreclosed asset expense and other credit costs		(3	)			(1	)			6				-				1				(4	)			2
Less: (Reversal of) provision for losses on off-balance sheet commitments		(2	)			15				(10	)			(4	)			(1	)			13				(3	)
Less: Productivity initiative costs		13				4				19				10				2				17				8
Less: Low income housing credit (LIHC) investment amortization expense		20				15				17				15				18				35				31
Less: Expenses of the LIHC consolidated VIEs		6				6				6				10				8				12				15
Less: Merger costs related to acquisitions		44				40				43				6				3				84				4
Less: Net adjustments related to privatization transaction		14				14				17				21				21				28				43
Less: Debt termination fees from balance sheet repositioning		-				-				-				30				-				-				-
Less: Intangible asset amortization		4				3				-				-				-				7				2
Noninterest expense, as adjusted (a)	$	606			$	617			$	617			$	550			$	547			$	1,223			$	1,111

Total revenue	$	871			$	903			$	889			$	843			$	834			$	1,774			$	1,689
Add: Net interest income taxable-equivalent adjustment		4				3				3				3				3				7				6
Less: Productivity initiative gains		-				-				-				-				-				-				23
Less: Accretion related to privatization-related fair value adjustments		3				5				15				42				10				8				21
Less: Other credit costs		2				(9	)			-				-				-				(7	)			-
Total revenue, as adjusted (b)	$	870			$	910			$	877			$	804			$	827			$	1,780			$	1,651
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		69.60		%		67.76		%		70.29		%		68.37		%		66.18		%		68.66		%		67.38		%

Total UNBC stockholder's equity	$	12,399			$	12,594			$	12,491			$	12,437			$	12,076
Less: Goodwill		3,186				2,952				2,942				2,457				2,457
Less: Intangible assets, except mortgage servicing rights (MSRs)		321				337				373				298				318
Less: Deferred tax liabilities related to goodwill and intangible assets		(118	)			(122	)			(129	)			(117	)			(115	)
Tangible common equity (c)	$	9,010			$	9,427			$	9,305			$	9,799			$	9,416
Tier 1 capital, determined in accordance with regulatory requirements	$	9,931			$	10,031			$	9,864			$	10,196			$	10,049
Less: Junior subordinated debt payable to trusts		66				66				66				-				-
Tier 1 common equity (d)	$	9,865			$	9,965			$	9,798			$	10,196			$	10,049
Total assets	$	102,261			$	96,959			$	96,992			$	88,185			$	87,939
Less: Goodwill		3,186				2,952				2,942				2,457				2,457
Less: Intangible assets, except MSRs		321				337				373				298				318
Less: Deferred tax liabilities related to goodwill and intangible assets		(118	)			(122	)			(129	)			(117	)			(115	)
Tangible assets (e)	$	98,872			$	93,792			$	93,806			$	85,547			$	85,279
Risk-weighted assets, determined in accordance with regulatory requirements (f) ⁽⁷⁾	$	85,979			$	80,018			$	79,321			$	74,065			$	72,905
Tangible common equity ratio (c)/(e) ⁽¹⁰⁾		9.11		%		10.05		%		9.92		%		11.46		%		11.04		%
Tier 1 common capital ratio (d)/(f) ^{(8) (9)}		11.47				12.45				12.35				13.77				13.78

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries

Footnotes
Exhibit 14


⁽¹⁾				Pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover loan losses through a credit cycle.

⁽²⁾				Core deposits exclude brokered deposits, foreign time deposits and domestic time deposits greater than $250,000.

⁽³⁾				Annualized.

⁽⁴⁾				These ratios exclude the impact of the privatization transaction and merger costs related to acquisitions. Management believes that these ratios provide useful supplemental information regarding UnionBanCal's business results. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

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

⁽⁶⁾				The adjusted efficiency ratio, a non-GAAP financial measure, is adjusted noninterest expense (noninterest expense excluding privatization-related expenses and fair value amortization/accretion, foreclosed asset expense and other credit costs, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated VIEs, merger costs related to acquisitions, certain costs related to productivity initiatives, debt termination fees from balance sheet repositioning and intangible asset amortization) as a percentage of adjusted total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding impact of privatization, gains from productivity initiatives related to the sale of certain business units in 2012, and other credit costs. Management discloses the adjusted efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our business activities. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

⁽⁷⁾				Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.

⁽⁸⁾				Estimated as of June 30, 2013.

⁽⁹⁾				The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, if any, to risk-weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, facilitates the understanding of UnionBanCal's capital structure and is used to assess and compare the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

⁽¹⁰⁾				The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio facilitates the understanding of UnionBanCal's capital structure and is used to assess and compare the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

⁽¹¹⁾				Criticized loans held for investment reflect loans in the commercial portfolio segment that are monitored for credit quality based on internal ratings. Amounts exclude small business loans, which are monitored by business credit score and delinquency status.

⁽¹²⁾				The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments.

⁽¹³⁾				These ratios exclude the impact of all purchased credit-impaired loans and FDIC covered OREO. Purchased credit-impaired loans and OREO related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank are covered under loss share agreements between Union Bank, N.A. and the Federal Deposit Insurance Corporation. Management believes the exclusion of purchased credit-impaired loans and FDIC covered OREO from certain asset quality ratios that include nonperforming loans, nonperforming assets, net loans charged off, 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.

⁽¹⁴⁾				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.

⁽¹⁵⁾				Includes interest bearing trading liabilities.

⁽¹⁶⁾				Excludes loans totaling $210 million, $125 million, $124 million, $88 million, and $124 million that are 90 days or more past due and still accruing at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, and June 30, 2012, respectively, which consist of loans accounted for in accordance with the accounting standards for purchased credit-impaired loans. The past due status of individual loans within the pools is not a meaningful indicator of credit quality, as potential credit losses are measured at the loan pool level.

nm = not meaningful

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

MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 25, 2013

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MUFG Americas Holdings Corp Reports