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

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8-K - UNIONBANCAL CORPORATION 8-K - MUFG Americas Holdings Corp	a50735816.htm

Exhibit 99.1

UnionBanCal Corporation Reports Third Quarter Net Income of $198 Million

Third Quarter Highlights:

Net income for the third quarter was $198 million, up from $142 million for the prior quarter, and up from $124 million for the year-ago quarter.
Total loans held for investment, excluding purchased credit-impaired (PCI) loans, at September 30, 2013, were $65.9 billion, up from $64.4 billion at June 30, 2013, and up from $54.9 billion at September 30, 2012.
Core deposits at September 30, 2013, were $68.3 billion, up from $65.5 billion at June 30, 2013, and up from $55.1 billion at September 30, 2012.
Total provision for credit losses was a benefit of $15 million, compared with a benefit of $5 million for the prior quarter, and a provision for credit losses of $41 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 $513 million, or 0.49 percent of total assets, compared with $521 million, or 0.52 percent of total assets, at June 30, 2013.
- Net charge-offs were $1 million for the quarter, or an annualized 0.01 percent of average total loans held for investment, compared with $10 million for the prior quarter and $40 million a year ago.
Net interest margin was 2.99 percent for the third quarter, down from 3.03 percent for the prior quarter, and down from 3.28 percent for the year-ago quarter.
Capital ratios remained strong:
- Tier 1 common capital ratio, measured using Basel I risk-weighted assets, was 11.11 percent at September 30, 2013, down 36 basis points from 11.47 percent at June 30, 2013.
Tangible common equity ratio was 9.01 percent at September 30, 2013, down 7 basis points from 9.08 percent at June 30, 2013.

SAN FRANCISCO--(BUSINESS WIRE)--October 24, 2013--UnionBanCal Corporation (the Company), parent company of San Francisco-based Union Bank, N.A., today reported third quarter 2013 results. Net income for the quarter was $198 million, up from $142 million for the prior quarter, and up from $124 million for the year-ago quarter. Net income increased compared to the prior quarter primarily due to higher loan growth, higher gains on the sale of securities, higher reversal of provision for credit losses and salary expense reductions from the Pacific Capital Bancorp (PCBC) integration.

Summary of Third Quarter Results

Third Quarter Total Revenue

For third quarter 2013, total revenue (net interest income plus noninterest income) was $919 million, up $46 million compared with second quarter 2013. Net interest income increased 2 percent, and noninterest income increased 16 percent. The net interest margin was 2.99 percent, down 4 basis points from 3.03 percent for the prior quarter.

Net interest income for third quarter 2013 was $685 million, up $13 million, or 2 percent, compared with second quarter 2013. The increase in net interest income was primarily due to higher commercial and industrial, commercial mortgage, and residential mortgage balances.

Average total loans held for investment, excluding PCI loans, increased $2.9 billion, or 5 percent, compared with second quarter 2013, primarily due to organic growth in commercial and industrial loans and the residential and commercial mortgage portfolios. Average total deposits increased $2.1 billion, or 3 percent, during the quarter, primarily due to organic retail deposit growth. Average interest bearing deposits increased $1.9 billion, or 4 percent, and average noninterest bearing deposits increased $0.2 billion, or 1 percent.

For third quarter 2013, noninterest income was $234 million, up $33 million, or 16 percent, compared with second quarter 2013, primarily due to higher net gains on the sale of securities and higher merchant banking fees.

Compared to third quarter 2012, total revenue grew $76 million, with net interest income up 6 percent and noninterest income up 19 percent. Net interest income increased $39 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 29 basis points, primarily due to lower yields on loans and securities.

Average total loans held for investment, excluding PCI loans, increased $10.5 billion, or 19 percent, compared with third quarter 2012, primarily due to the acquisition of PCBC which closed in the fourth quarter of 2012, the PB Capital acquisition which closed in the second quarter of 2013, and organic loan growth. Average total deposits increased $13.0 billion compared with the third quarter of 2012, primarily due to organic growth, with average interest bearing deposits up $9.5 billion, or 22 percent, and average noninterest bearing deposits up $3.6 billion, or 17 percent.

Noninterest income increased $37 million, or 19 percent, compared with third quarter 2012, primarily due to the gain on the sale of certain affiliated mutual funds, higher net gains on the sale of securities, higher trust and investment management fees, which increased primarily due to higher fees on assets under management, and higher merchant banking fees.

Third Quarter Noninterest Expense

Noninterest expense for third quarter 2013 was $689 million, down $13 million compared with second quarter 2013. Staff expense decreased $22 million, primarily reflecting salary expense reductions from the PCBC integration as well as annual seasonal factors. Non-staff expense increased $9 million, primarily due to increases in professional service fees and on the FDIC clawback liability.

Noninterest expense for third quarter 2013 was up $51 million, or 8 percent, compared with third quarter 2012. Staff expense increased $35 million, primarily due to acquisition-related activity. Non-staff expense increased $16 million, primarily due to one-time costs associated with the PCBC acquisition.

Taxes

The effective tax rate for third quarter 2013 was 22 percent, compared with an effective tax rate of 20 percent for second quarter 2013.

Balance Sheet

At September 30, 2013, the Company had total assets of $105.5 billion, up $3.2 billion compared with June 30, 2013, primarily due to an increase in cash and equivalents resulting from a senior note issuance in late September and organic loan growth. At September 30, 2013, total deposits were $79.4 billion, up $2.0 billion compared with June 30, 2013, primarily reflecting organic retail deposit growth. Core deposits at September 30, 2013, were $68.3 billion, up $2.8 billion, or 4 percent, compared with June 30, 2013.

Credit Quality

Credit quality continued to be strong during the third quarter of 2013, reflected by a net recovery of loans charged-off in the third quarter, and continued decreases in both nonperforming assets and criticized loans.

Excluding PCI loans and FDIC covered OREO, nonperforming assets ended the quarter at $513 million, or 0.49 percent of total assets; compared with $521 million, or 0.52 percent of total assets, at June 30, 2013; and $526 million, or 0.60 percent of total assets, at September 30, 2012.

Excluding PCI loans and FDIC covered OREO, net charge-offs were $1 million for third quarter 2013, or an annualized 0.01 percent of average total loans. This was improved from net charge-offs of $10 million, or an annualized 0.06 percent of average total loans, in second quarter 2013; and down from net charge-offs of $40 million, or an annualized 0.29 percent of average total loans, for third 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 the third quarter 2013, the provision for loan losses was a benefit of $16 million and the provision for losses on off-balance sheet commitments was $1 million, for a total provision for credit losses benefit of $15 million. This compares with a total provision for credit losses benefit of $5 million for second quarter 2013. The primary driver of the lower total provision was improved credit quality in the non-PCI portfolio.

The allowance for credit losses as a percent of total loans, excluding PCI loans, was 1.12 percent at September 30, 2013, compared with 1.18 percent at June 30, 2013, and 1.43 percent at September 30, 2012. The allowance for credit losses as a percent of nonaccrual loans, excluding PCI loans, was 150 percent at September 30, 2013, compared with 153 percent at June 30, 2013, and 155 percent at September 30, 2012.

Capital

The Company’s stockholder’s equity was $12.5 billion at September 30, 2013. Tangible common equity was $9.2 billion, up $222 million, or 2 percent, from June 30, 2013. The Company’s tangible common equity ratio was 9.01 percent at September 30, 2013, down 7 basis points from 9.08 percent at June 30, 2013, primarily due to asset growth. The Basel I Tier 1 common and Tier 1 risk-based capital ratios were 11.11 percent and 11.18 percent, respectively, at September 30, 2013. Additionally, the Basel I Total risk-based capital ratio was 13.13 percent at September 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 $105.5 billion at September 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 2 international offices, on September 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
	As of and for the Three Months Ended																			September 30, 2013 from
	September 30,				June 30,				March 31,				December 31,				September 30,			June 30,			September 30,
(Dollars in millions)	2013				2013 ⁽¹⁾				2012 ⁽¹⁾				2012 ⁽¹⁾				2012 ⁽¹⁾			2013			2012
Results of operations:
Net interest income	$	685			$	672			$	653			$	660			$	646		2		%	6		%
Noninterest income		234				201				251				230				197		16			19
Total revenue		919				873				904				890				843		5			9
Noninterest expense		689				702				713				715				638		(2	)		8
Pre-tax, pre-provision income ⁽²⁾		230				171				191				175				205		35			12
(Reversal of) provision for loan losses		(16	)			(3	)			(3	)			(5	)			45		nm			(136	)
Income before income taxes and including noncontrolling interests		246				174				194				180				160		41			54
Income tax expense		55				35				50				60				42		57			31
Net income including noncontrolling interests		191				139				144				120				118		37			62
Deduct: Net loss from noncontrolling interests		7				3				4				4				6		133			17
Net income attributable to
UnionBanCal Corporation (UNBC)	$	198			$	142			$	148			$	124			$	124		39			60

Balance sheet (end of period):
Total assets	$	105,484			$	102,279			$	96,975			$	97,008			$	88,185		3			20
Total securities		22,318				24,415				22,816				22,455				22,089		(9	)		1
Total loans held for investment		67,170				65,843				60,882				60,034				55,410		2			21
Core deposits ⁽³⁾		68,334				65,533				63,585				63,769				55,141		4			24
Total deposits		79,415				77,356				74,038				74,304				65,193		3			22
Long-term debt		7,803				6,058				5,314				5,622				5,540		29			41
UNBC stockholder's equity		12,549				12,371				12,565				12,461				12,407		1			1

Balance sheet (period average):
Total assets	$	101,534			$	98,714			$	96,649			$	92,051			$	87,881		3			16
Total securities		22,909				23,183				21,824				21,903				22,496		(1	)		2
Total loans held for investment		66,608				63,673				60,553				57,242				55,285		5			20
Earning assets		92,035				89,292				87,055				82,776				79,137		3			16
Total deposits		77,434				75,350				74,256				69,601				64,420		3			20
UNBC stockholder's equity		12,210				12,599				12,584				12,559				12,209		(3	)		-

Performance ratios:
Return on average assets ⁽⁴⁾		0.78		%		0.58		%		0.61		%		0.54		%		0.56	%
Return on average UNBC stockholder's equity ⁽⁴⁾		6.50				4.53				4.68				3.95				4.06
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}		0.81				0.66				0.72				0.68				0.62
Return on average UNBC stockholder's equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}		8.01				6.17				6.69				5.95				5.39
Efficiency ratio ⁽⁶⁾		75.01				80.37				78.84				80.37				75.56
Adjusted efficiency ratio ⁽⁷⁾		67.21				69.45				67.72				70.22				68.33
Net interest margin ^{(4) (8)}		2.99				3.03				3.04				3.21				3.28

Capital ratios:
Tier 1 risk-based capital ratio ^{(9) (10)}		11.18		%		11.55		%		12.54		%		12.44		%		13.77	%
Total risk-based capital ratio ^{(9) (10)}		13.13				13.63				14.02				13.93				15.51
Leverage ratio ⁽¹⁰⁾		10.22				10.36				10.70				11.18				12.03
Tier 1 common capital ratio ^{(9) (10) (11)}		11.11				11.47				12.45				12.35				13.77
Tangible common equity ratio ⁽¹²⁾		9.01				9.08				10.02				9.89				11.42

Refer to Exhibit 14 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, 2013 from
	September 30,				September 30,			September 30,
(Dollars in millions)	2013				2012 ⁽¹⁾			2012
Results of operations:
Net interest income	$	2,010			$	1,942		4		%
Noninterest income		686				589		16
Total revenue		2,696				2,531		7
Noninterest expense		2,104				1,851		14
Pre-tax, pre-provision income ⁽²⁾		592				680		(13	)
(Reversal of) provision for loan losses		(22	)			30		(173	)
Income before income taxes and including noncontrolling interests		614				650		(6	)
Income tax expense		140				160		(13	)
Net income including noncontrolling interests		474				490		(3	)
Deduct: Net loss from noncontrolling interests		14				15		(7	)
Net income attributable to UNBC	$	488			$	505		(3	)

Balance sheet (end of period):
Total assets	$	105,484			$	88,185		20
Total securities		22,318				22,089		1
Total loans held for investment		67,170				55,410		21
Core deposits ⁽³⁾		68,334				55,141		24
Total deposits		79,415				65,193		22
Long-term debt		7,803				5,540		41
UNBC stockholder's equity		12,549				12,407		1

Balance sheet (period average):
Total assets	$	98,984			$	88,933		11
Total securities		22,643				23,657		(4	)
Total loans held for investment		63,633				54,792		16
Earning assets		89,479				80,085		12
Total deposits		75,692				64,448		17
UNBC stockholder's equity		12,463				11,913		5

Performance ratios:
Return on average assets ⁽⁴⁾		0.66		%		0.76	%
Return on average UNBC stockholder's equity ⁽⁴⁾		5.23				5.65
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}		0.73				0.81
Return on average stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}		6.95				7.39
Efficiency ratio ⁽⁶⁾		78.03				73.15
Adjusted efficiency ratio ⁽⁷⁾		68.10				67.81
Net interest margin ^{(4) (8)}		3.02				3.25

Capital ratios:
Tier 1 risk-based capital ratio ^{(9) (10)}		11.18		%		13.77	%
Total risk-based capital ratio ^{(9) (10)}		13.13				15.51
Leverage ratio ⁽¹⁰⁾		10.22				12.03
Tier 1 common capital ratio ^{(9) (10) (11)}		11.11				13.77
Tangible common equity ratio ⁽¹²⁾		9.01				11.42

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

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(16	)		$	(3	)		$	(3	)		$	(3	)		$	43			(433	)	%	(137	)	%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		-				-				-				(2	)			2			-			(100	)
(Reversal of) provision for losses on off-balance sheet commitments		1				(2	)			15				(10	)			(4	)		150			125
Total (reversal of) provision for credit losses	$	(15	)		$	(5	)		$	12			$	(15	)		$	41			(200	)		(137	)
Net loans charged off (recovered)	$	(1	)		$	8			$	14			$	5			$	42			(113	)		(102	)
Nonperforming assets		574				589				607				616				637			(3	)		(10	)
Criticized loans held for investment ⁽¹³⁾		1,270				1,362				1,545				1,277				1,520			(7	)		(16	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment		0.91		%		0.95		%		1.05		%		1.09		%		1.21		%
Nonaccrual loans		119.04				120.11				122.62				129.47				125.12
Allowance for credit losses to ⁽¹⁴⁾:
Total loans held for investment		1.10				1.16				1.27				1.28				1.43
Nonaccrual loans		144.63				146.34				149.24				152.67				148.80
Net loans charged off to average total loans held for investment ⁽⁴⁾		(0.01	)			0.05				0.10				0.03				0.30
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)		0.85				0.89				1.00				1.02				1.15
Nonperforming assets to total assets		0.54				0.58				0.63				0.63				0.72
Nonaccrual loans to total loans held for investment		0.76				0.79				0.85				0.84				0.96

Excluding purchased credit-impaired loans and FDIC covered OREO ⁽¹⁵⁾:
Allowance for loan losses to:
Total loans held for investment		0.92		%		0.97		%		1.06		%		1.11		%		1.20		%
Nonaccrual loans		123.53				125.69				129.56				137.40				130.29
Allowance for credit losses to ⁽¹⁴⁾:
Total loans held for investment		1.12				1.18				1.30				1.31				1.43
Nonaccrual loans		150.14				153.18				157.75				162.05				155.39
Net loans charged off to average total loans held for investment ⁽⁴⁾		0.01				0.06				0.08				0.01				0.29
Nonperforming assets to total loans held for investment and OREO		0.78				0.81				0.87				0.88				0.96
Nonperforming assets to total assets		0.49				0.52				0.54				0.54				0.60
Nonaccrual loans to total loans held for investment		0.75				0.77				0.82				0.81				0.92


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

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(22	)		$	31					(171	)	%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		-				(1	)				100
(Reversal of) provision for losses on off-balance sheet commitments		14				(7	)				300
Total (reversal of) provision for credit losses	$	(8	)		$	23					(135	)
Net loans charged off	$	21			$	126					(83	)
Nonperforming assets		574				637					(10	)

Credit Ratios:
Net loans charged off to average total loans held for investment ⁽⁴⁾		0.04		%		0.31		%
Nonperforming assets to total assets		0.54				0.72

Excluding purchased credit-impaired loans and FDIC covered OREO ⁽¹⁵⁾:
Net loans charged off to average total loans held for investment ⁽⁴⁾		0.05		%		0.30		%
Nonperforming assets to total assets		0.49				0.60

Refer to Exhibit 14 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)	2013			2013⁽¹⁾			2013⁽¹⁾			2012⁽¹⁾			2012⁽¹⁾
Interest Income
Loans	$	668		$	649		$	629		$	629		$	608
Securities		118			118			118			122			129
Other		2			2			3			3			1
Total interest income		788			769			750			754			738

Interest Expense
Deposits		63			61			60			57			51
Commercial paper and other short-term borrowings		2			1			1			1			2
Long-term debt		38			35			36			36			39
Total interest expense		103			97			97			94			92

Net Interest Income		685			672			653			660			646
(Reversal of) provision for loan losses		(16	)		(3	)		(3	)		(5	)		45
Net interest income after (reversal of) provision for loan losses		701			675			656			665			601

Noninterest Income
Service charges on deposit accounts		53			52			53			51			51
Trust and investment management fees		34			38			35			33			29
Trading account activities		15			21			5			30			23
Securities gains, net		47			27			96			20			41
Credit facility fees		31			26			26			27			27
Merchant banking fees		29			23			16			23			24
Brokerage commissions and fees		12			11			11			11			9
Card processing fees, net		8			9			9			8			8
Other, net		5			(6	)		-			27			(15	)
Total noninterest income		234			201			251			230			197

Noninterest Expense
Salaries and employee benefits		391			413			421			408			356
Net occupancy and equipment		77			84			75			70			65
Professional and outside services		66			62			58			81			54
Intangible asset amortization		16			17			16			19			20
Regulatory assessments		20			20			20			17			14
(Reversal of) provision for losses on off-balance sheet commitments		1			(2	)		15			(10	)		(4	)
Other		118			108			108			130			133
Total noninterest expense		689			702			713			715			638

Income before income taxes and including noncontrolling interests		246			174			194			180			160
Income tax expense		55			35			50			60			42

Net Income including Noncontrolling Interests		191			139			144			120			118

Deduct: Net loss from noncontrolling interests		7			3			4			4			6
Net Income attributable to UNBC	$	198		$	142		$	148		$	124		$	124

Refer to Exhibit 14 for footnote explanations.

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

	For the Nine Months Ended
	September 30,			September 30,
(Dollars in millions)	2013			2012 ⁽¹⁾
Interest Income
Loans	$	1,946		$	1,810
Securities		354			405
Other		7			3
Total interest income		2,307			2,218

Interest Expense
Deposits		184			157
Commercial paper and other short-term borrowings		4			8
Long-term debt		109			111
Total interest expense		297			276

Net Interest Income		2,010			1,942
(Reversal of) provision for loan losses		(22	)		30
Net interest income after (reversal of) provision for loan losses		2,032			1,912

Noninterest Income
Service charges on deposit accounts		158			158
Trust and investment management fees		107			86
Trading account activities		41			71
Securities gains, net		170			88
Credit facility fees		83			77
Merchant banking fees		68			66
Brokerage commissions and fees		34			28
Card processing fees, net		26			24
Other, net		(1	)		(9	)
Total noninterest income		686			589

Noninterest Expense
Salaries and employee benefits		1,225			1,071
Net occupancy and equipment		236			197
Professional and outside services		186			147
Intangible asset amortization		49			62
Regulatory assessments		60			48
(Reversal of) provision for losses on
off-balance sheet commitments		14			(7	)
Other		334			333
Total noninterest expense		2,104			1,851

Income before income taxes and including noncontrolling interests		614			650
Income tax expense		140			160

Net Income including Noncontrolling Interests		474			490

Deduct: Net loss from noncontrolling interests		14			15
Net Income attributable to UNBC	$	488		$	505

Refer to Exhibit 14 for footnote explanations.

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

	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in millions except for per share amount)	2013			2013 ⁽¹⁾			2013 ⁽¹⁾			2012 ⁽¹⁾			2012 ⁽¹⁾
Assets
Cash and due from banks	$	1,719		$	1,405		$	1,265		$	1,845		$	1,237
Interest bearing deposits in banks		5,471			1,899			3,776			3,477			1,703
Federal funds sold and securities purchased under resale agreements		122			50			50			169			32
Total cash and cash equivalents		7,312			3,354			5,091			5,491			2,972
Trading account assets (includes $13 at September 30, 2013; $4 at June 30, 2013; $40 at March 31, 2013; $1 at December 31, 2012; and $3 at September 30, 2012 of assets pledged as collateral)		776			844			1,119			1,208			1,236
Securities available for sale		16,872			23,510			21,801			21,352			20,907
Securities held to maturity (Fair value: September 30, 2013, $5,450; June 30, 2013, $891; March 31, 2013, $1,036; December 31, 2012, $1,135; and September 30, 2012, $1,224)		5,446			905			1,015			1,103			1,182
Loans held for investment		67,170			65,843			60,882			60,034			55,410
Allowance for loan losses		(608	)		(625	)		(638	)		(653	)		(668	)
Loans held for investment, net		66,562			65,218			60,244			59,381			54,742
Premises and equipment, net		685			699			707			710			637
Intangible assets, net		288			322			339			376			298
Goodwill		3,168			3,186			2,952			2,942			2,457
FDIC indemnification asset		191			233			285			338			401
Other assets		4,184			4,008			3,422			4,107			3,353
Total assets	$	105,484		$	102,279		$	96,975		$	97,008		$	88,185

Liabilities
Deposits:
Noninterest bearing	$	26,126		$	25,655		$	24,679		$	25,478		$	21,490
Interest bearing		53,289			51,701			49,359			48,826			43,703
Total deposits		79,415			77,356			74,038			74,304			65,193
Commercial paper and other short-term borrowings		3,078			3,792			2,228			1,363			2,091
Long-term debt		7,803			6,058			5,314			5,622			5,540
Trading account liabilities		614			566			742			895			952
Other liabilities		1,767			1,866			1,818			2,099			1,743
Total liabilities		92,677			89,638			84,140			84,283			75,519

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 September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, and September 30, 2012		136			136			136			136			136
Additional paid-in capital		5,985			5,979			5,997			5,994			5,989
Retained earnings		7,333			7,135			6,993			6,845			6,722
Accumulated other comprehensive loss		(905	)		(879	)		(561	)		(514	)		(440	)
Total UNBC stockholder's equity		12,549			12,371			12,565			12,461			12,407
Noncontrolling interests		258			270			270			264			259
Total equity		12,807			12,641			12,835			12,725			12,666
Total liabilities and equity	$	105,484		$	102,279		$	96,975		$	97,008		$	88,185

Refer to Exhibit 14 for footnote explanations.

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

	For the Three Months Ended
	September 30, 2013							June 30, 2013
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾		Balance			Expense ⁽¹⁾⁽⁸⁾		Rate ^(1)(4)(8)
Assets
Loans held for investment: ⁽¹⁶⁾
Commercial and industrial	$	22,930		$	192	3.32	%	$	21,701		$	185	3.42	%
Commercial mortgage		12,936			117	3.62			11,851			112	3.79
Construction		827			7	3.30			800			7	3.30
Lease financing		973			12	4.92			1,056			9	3.53
Residential mortgage		24,157			225	3.72			23,428			220	3.77
Home equity and other consumer loans		3,384			33	3.87			3,500			33	3.85
Loans, before purchased credit-impaired loans		65,207			586	3.58			62,336			566	3.64
Purchased credit-impaired loans		1,401			82	23.46			1,337			83	24.69
Total loans held for investment		66,608			668	4.00			63,673			649	4.08
Securities		22,909			122	2.12			23,183			121	2.11
Interest bearing deposits in banks		2,050			1	0.25			1,923			1	0.25
Federal funds sold and securities purchased under resale agreements		101			-	0.13			123			-	0.16
Trading account assets		134			1	0.43			162			-	0.36
Other earning assets		233			-	0.97			228			1	0.53
Total earning assets		92,035			792	3.43			89,292			772	3.47
Allowance for loan losses		(633	)						(642	)
Cash and due from banks		1,315							1,355
Premises and equipment, net		694							704
Other assets		8,123							8,005
Total assets	$	101,534						$	98,714
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	34,912			31	0.36		$	32,296			26	0.32
Savings		5,633			2	0.13			5,666			2	0.13
Time		12,017			30	0.98			12,710			33	1.06
Total interest bearing deposits		52,562			63	0.47			50,672			61	0.49
Commercial paper and other short-term borrowings ⁽¹⁷⁾		3,376			2	0.20			3,224			1	0.18
Long-term debt		6,135			38	2.47			5,326			35	2.64
Total borrowed funds		9,511			40	1.66			8,550			36	1.71
Total interest bearing liabilities		62,073			103	0.66			59,222			97	0.66
Noninterest bearing deposits		24,872							24,678
Other liabilities		2,110							1,945
Total liabilities		89,055							85,845
Equity
UNBC Stockholder's equity		12,210							12,599
Noncontrolling interests		269							270
Total equity		12,479							12,869
Total liabilities and equity	$	101,534						$	98,714

Net interest income/spread (taxable-equivalent basis)					689	2.77	%					675	2.81	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.99							3.03
Less: taxable-equivalent adjustment					4							3
Net interest income				$	685						$	672

Refer to Exhibit 14 for footnote explanations.

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

	For the Three Months Ended
	September 30, 2013							September 30, 2012
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾		Balance			Expense ⁽¹⁾⁽⁸⁾		Rate ^(1)(4)(8)
Assets
Loans held for investment: ⁽¹⁶⁾
Commercial and industrial	$	22,930		$	192	3.32	%	$	20,389		$	179	3.50	%
Commercial mortgage		12,936			117	3.62			8,064			81	4.01
Construction		827			7	3.30			650			6	3.76
Lease financing		973			12	4.92			982			10	4.10
Residential mortgage		24,157			225	3.72			21,022			218	4.17
Home equity and other consumer loans		3,384			33	3.87			3,557			34	3.74
Loans, before purchased credit-impaired loans		65,207			586	3.58			54,664			528	3.86
Purchased credit-impaired loans		1,401			82	23.46			621			80	51.23
Total loans held for investment		66,608			668	4.00			55,285			608	4.39
Securities		22,909			122	2.12			22,496			132	2.34
Interest bearing deposits in banks		2,050			1	0.25			941			-	0.24
Federal funds sold and securities purchased under resale agreements		101			-	0.13			62			-	0.19
Trading account assets		134			1	0.43			228			1	0.53
Other earning assets		233			-	0.97			125			-	0.15
Total earning assets		92,035			792	3.43			79,137			741	3.74
Allowance for loan losses		(633	)						(657	)
Cash and due from banks		1,315							1,258
Premises and equipment, net		694							646
Other assets		8,123							7,497
Total assets	$	101,534						$	87,881
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	34,912			31	0.36		$	26,517			15	0.23
Savings		5,633			2	0.13			5,222			2	0.16
Time		12,017			30	0.98			11,361			34	1.22
Total interest bearing deposits		52,562			63	0.47			43,100			51	0.48
Commercial paper and other short-term borrowings ⁽¹⁷⁾		3,376			2	0.20			2,541			2	0.25
Long-term debt		6,135			38	2.47			5,963			39	2.57
Total borrowed funds		9,511			40	1.66			8,504			41	1.88
Total interest bearing liabilities		62,073			103	0.66			51,604			92	0.71
Noninterest bearing deposits		24,872							21,320
Other liabilities		2,110							2,494
Total liabilities		89,055							75,418
Equity
UNBC Stockholder's equity		12,210							12,209
Noncontrolling interests		269							254
Total equity		12,479							12,463
Total liabilities and equity	$	101,534						$	87,881

Net interest income/spread (taxable-equivalent basis)					689	2.77	%					649	3.03	%
Impact of noninterest bearing deposits						0.19							0.21
Impact of other noninterest bearing sources						0.03							0.04
Net interest margin						2.99							3.28
Less: taxable-equivalent adjustment					4							3
Net interest income				$	685						$	646

Refer to Exhibit 14 for footnote explanations.

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

	For the Nine Months Ended
	September 30, 2013							September 30, 2012
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾		Balance			Expense ⁽¹⁾⁽⁸⁾		Rate ^(1)(4)(8)
Assets
Loans held for investment: ⁽¹⁶⁾
Commercial and industrial	$	21,996		$	554	3.37	%	$	20,066		$	535	3.56	%
Commercial mortgage		11,573			330	3.81			8,204			248	4.03
Construction		760			22	3.84			720			22	4.12
Lease financing		1,030			28	3.61			1,006			32	4.23
Residential mortgage		23,485			667	3.79			20,396			654	4.28
Home equity and other consumer loans		3,495			100	3.85			3,627			105	3.85
Loans, before purchased credit-impaired loans		62,339			1,701	3.64			54,019			1,596	3.94
Purchased credit-impaired loans		1,294			245	25.30			773			219	37.88
Total loans held for investment		63,633			1,946	4.08			54,792			1,815	4.42
Securities		22,643			365	2.15			23,657			409	2.30
Interest bearing deposits in banks		2,671			5	0.25			1,254			2	0.25
Federal funds sold and securities purchased under resale agreements		131			-	0.17			62			-	0.21
Trading account assets		149			1	0.36			185			1	0.57
Other earning assets		252			1	0.62			135			-	0.15
Total earning assets		89,479			2,318	3.46			80,085			2,227	3.71
Allowance for loan losses		(642	)						(710	)
Cash and due from banks		1,356							1,299
Premises and equipment, net		701							659
Other assets		8,090							7,600
Total assets	$	98,984						$	88,933
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	32,983			79	0.32		$	25,926			43	0.22
Savings		5,717			6	0.13			5,271			6	0.16
Time		12,346			99	1.07			12,636			108	1.15
Total interest bearing deposits		51,046			184	0.48			43,833			157	0.48
Commercial paper and other short-term borrowings ⁽¹⁷⁾		2,814			4	0.19			3,851			8	0.27
Long-term debt		5,629			109	2.57			5,907			111	2.50
Total borrowed funds		8,443			113	1.78			9,758			119	1.62
Total interest bearing liabilities		59,489			297	0.67			53,591			276	0.69
Noninterest bearing deposits		24,646							20,615
Other liabilities		2,118							2,554
Total liabilities		86,253							76,760
Equity
UNBC Stockholder's equity		12,463							11,913
Noncontrolling interests		268							260
Total equity		12,731							12,173
Total liabilities and equity	$	98,984						$	88,933

Net interest income/spread (taxable-equivalent basis)					2,021	2.79	%					1,951	3.02	%
Impact of noninterest bearing deposits						0.20							0.19
Impact of other noninterest bearing sources						0.03							0.04
Net interest margin						3.02							3.25
Less: taxable-equivalent adjustment					11							9
Net interest income				$	2,010						$	1,942

Refer to Exhibit 14 for footnote explanations.

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

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

Loans held for investment (period end)
Loans held for investment:
Commercial and industrial	$	23,125	$	22,266	$	21,433	$	20,827	$	20,124
Commercial mortgage		12,905		13,008		9,918		9,939		8,293
Construction		855		808		659		627		678
Lease financing		972		984		1,060		1,104		962
Total commercial portfolio		37,857		37,066		33,070		32,497		30,057

Residential mortgage		24,714		23,835		23,146		22,705		21,335
Home equity and other consumer loans		3,336		3,456		3,542		3,647		3,494
Total consumer portfolio		28,050		27,291		26,688		26,352		24,829
Loans held for investment, before purchased credit-impaired loans		65,907		64,357		59,758		58,849		54,886
Purchased credit-impaired loans		1,263		1,486		1,124		1,185		524

Total loans held for investment	$	67,170	$	65,843	$	60,882	$	60,034	$	55,410

Nonperforming Assets (period end)
Nonaccrual loans:
Commercial and industrial	$	62	$	69	$	49	$	48	$	36
Commercial mortgage		88		62		57		65		91

Total commercial portfolio		150		131		106		113		127

Residential mortgage		293		315		326		306		325
Home equity and other consumer loans		48		50		59		56		52
Total consumer portfolio		341		365		385		362		377

Nonaccrual loans, before purchased credit-impaired loans		491		496		491		475		504
Purchased credit-impaired loans		20		24		29		30		30
Total nonaccrual loans		511		520		520		505		534

OREO		22		25		29		45		22
FDIC covered OREO		41		44		58		66		81

Total nonperforming assets	$	574	$	589	$	607	$	616	$	637

Total nonperforming assets, excluding purchased credit-impaired loans and FDIC covered OREO	$	513	$	521	$	520	$	520	$	526

Loans 90 days or more past due and still accruing⁽¹⁸⁾	$	8	$	7	$	3	$	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
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in millions)	2013			2013			2013			2012			2012

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	625		$	638		$	653		$	668		$	656

(Reversal of) provision for loan losses, excluding FDIC covered loans		(16	)		(3	)		(3	)		(3	)		43
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		-			-			-			(2	)		2
Increase (decrease) in allowance covered by FDIC indemnification		(2	)		(2	)		2			(4	)		8
Other		-			-			-			(1	)		1

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

Residential mortgage		(2	)		(3	)		(7	)		(6	)		(22	)
Home equity and other consumer loans		(2	)		(5	)		(6	)		(9	)		(19	)
Total consumer portfolio		(4	)		(8	)		(13	)		(15	)		(41	)

FDIC covered loans		-			-			(3	)		(8	)		(3	)
Total loans charged off		(13	)		(20	)		(19	)		(32	)		(57	)

Recoveries of loans previously charged off:
Commercial and industrial		5			7			3			6			7
Commercial mortgage		4			2			-			10			5
Construction		1			-			-			2			1
Lease financing		-			-			-			5			-
Total commercial portfolio		10			9			3			23			13

Home equity and other consumer loans		2			1			1			1			1
Total consumer portfolio		2			1			1			1			1

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

Ending balance of allowance for loan losses		608			625			638			653			668
Allowance for losses on off-balance sheet commitments		131			136			138			117			126
Total allowance for credit losses	$	739		$	761		$	776		$	770		$	794

Components of allowance for loan losses:
Allowance for loan losses, excluding allowance on purchased credit-impaired loans	$	607		$	624		$	637		$	652		$	656
Allowance for loan losses on purchased credit-impaired loans		1			1			1			1			12
Total allowance for loan losses	$	608		$	625		$	638		$	653		$	668

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

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

U.S. government sponsored agencies	$	138	$	139	$	362	$	364	$	(225	)	(62	)	%
Residential mortgage-backed securities:
U.S. government and government sponsored agencies		10,035		9,782		14,930		14,673		(4,891	)	(33	)
Privately issued		238		241		330		328		(87	)	(27	)
Commercial mortgage-backed securities		2,047		1,976		3,904		3,750		(1,774	)	(47	)
Collateralized loan obligations		2,605		2,613		2,414		2,445		168		7
Asset-backed and other		58		59		79		80		(21	)	(26	)
Asset Liability Management securities		15,121		14,810		22,019		21,640		(6,830	)	(32	)
Other debt securities:
Direct bank purchase bonds		1,916		1,908		1,708		1,703		205		12
Other		148		147		155		152		(5	)	(3	)
Equity securities		6		7		15		15		(8	)	(53	)
Total securities available for sale	$	17,191	$	16,872	$	23,897	$	23,510	$	(6,638	)	(28	)	%

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 Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in millions)	2013				2013 ⁽¹⁾				2013 ⁽¹⁾				2012 ⁽¹⁾				2012 ⁽¹⁾				2013				2012 ⁽¹⁾

Net income attributable to UNBC	$	198			$	142			$	148			$	124			$	124			$	488			$	505
Adjustments for merger costs related to acquisitions, net of tax		15				27				24				26				3				66				6
Net adjustments for privatization transaction, net of tax		(14	)			(8	)			(1	)			2				5				(23	)			18
Net income attributable to UNBC, excluding impact of privatization transaction and merger costs related to acquisitions	$	199			$	161			$	171			$	152			$	132			$	531			$	529

Average total assets	$	101,534			$	98,714			$	96,649			$	92,051			$	87,881			$	98,984			$	88,933
Net adjustments related to privatization transaction		2,309				2,318				2,330				2,345				2,359				2,319				2,376
Average total assets, excluding impact of privatization transaction	$	99,225			$	96,396			$	94,319			$	89,706			$	85,522			$	96,665			$	86,557
Return on average assets⁽⁴⁾		0.78		%		0.58		%		0.61		%		0.54		%		0.56		%		0.66		%		0.76		%
Return on average assets, excluding impact of privatization transaction and merger costs related to acquisitions^{(4) (5)}		0.81				0.66				0.72				0.68				0.62				0.73				0.81

Average UNBC stockholder's equity	$	12,210			$	12,599			$	12,584			$	12,559			$	12,209			$	12,463			$	11,913
Adjustments for merger costs related to acquisitions		(93	)			(64	)			(48	)			(15	)			(5	)			(71	)			(2	)
Net adjustments for privatization transaction		2,319				2,337				2,353				2,360				2,366				2,336				2,370
Average UNBC stockholder's equity, excluding impact of privatization transaction and merger costs related to acquisitions	$	9,984			$	10,326			$	10,279			$	10,214			$	9,848			$	10,198			$	9,545
Return on average UNBC stockholder's equity ⁽⁴⁾		6.50		%		4.53		%		4.68		%		3.95		%		4.06		%		5.23		%		5.65		%
Return on average UNBC stockholder's equity, excluding impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}		8.01				6.17				6.69				5.95				5.39				6.95				7.39

Noninterest expense	$	689			$	702			$	713			$	715			$	638			$	2,104			$	1,851
Less: Foreclosed asset expense and other credit costs		(2	)			(3	)			(1	)			6				-				(6	)			2
Less: (Reversal of) provision for losses on off-balance sheet commitments		1				(2	)			15				(10	)			(4	)			14				(7	)
Less: Productivity initiative costs		14				13				4				19				10				31				18
Less: Low income housing credit (LIHC) investment amortization expense		17				20				15				17				15				52				46
Less: Expenses of the LIHC consolidated VIEs		11				6				6				6				10				23				25
Less: Merger costs related to acquisitions		25				44				40				43				6				109				10
Less: Net adjustments related to privatization transaction		13				14				14				17				21				41				64
Less: Debt termination fees from balance sheet repositioning		-				-				-				-				30				-				30
Less: Intangible asset amortization		3				4				3				-				-				10				-
Noninterest expense, as adjusted (a)	$	607			$	606			$	617			$	617			$	550			$	1,830			$	1,663

Total revenue	$	919			$	873			$	904			$	890			$	843			$	2,696			$	2,531
Add: Net interest income taxable-equivalent adjustment		4				4				3				3				3				11				9
Less: Productivity initiative gains		11				-				-				-				-				11				23
Less: Accretion related to privatization-related fair value adjustments		8				3				5				15				42				16				63
Less: Other credit costs		1				2				(9	)			-				-				(6	)			-
Total revenue, as adjusted (b)	$	903			$	872			$	911			$	878			$	804			$	2,686			$	2,454

Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		67.21		%		69.45		%		67.72		%		70.22		%		68.33		%		68.10		%		67.81		%

Total UNBC stockholder's equity	$	12,549			$	12,371			$	12,565			$	12,461			$	12,407
Less: Goodwill		3,168				3,186				2,952				2,942				2,457
Less: Intangible assets, except mortgage servicing rights (MSRs)		287				321				337				373				298
Less: Deferred tax liabilities related to goodwill and intangible assets		(110	)			(118	)			(122	)			(129	)			(117	)
Tangible common equity (c)	$	9,204			$	8,982			$	9,398			$	9,275			$	9,769
Tier 1 capital, determined in accordance with regulatory requirements	$	10,153			$	9,931			$	10,031			$	9,864			$	10,196
Less: Junior subordinated debt payable to trusts		66				66				66				66				-
Tier 1 common equity (d)	$	10,087			$	9,865			$	9,965			$	9,798			$	10,196
Total assets	$	105,484			$	102,279			$	96,975			$	97,008			$	88,185
Less: Goodwill		3,168				3,186				2,952				2,942				2,457
Less: Intangible assets, except MSRs		287				321				337				373				298
Less: Deferred tax liabilities related to goodwill and intangible assets		(110	)			(118	)			(122	)			(129	)			(117	)
Tangible assets (e)	$	102,139			$	98,890			$	93,808			$	93,822			$	85,547
Risk-weighted assets, determined in accordance with regulatory requirements (f) ⁽⁸⁾	$	90,784			$	85,979			$	80,018			$	79,321			$	74,065
Tangible common equity ratio (c)/(e) ⁽¹²⁾		9.01		%		9.08		%		10.02		%		9.89		%		11.42		%
Tier 1 common capital ratio (d)/(f)^{(9) (10) (11)}		11.11				11.47				12.45				12.35				13.77

Refer to Exhibit 14 for footnote explanations.

UnionBanCal Corporation and Subsidiaries

Footnotes
Exhibit 14


⁽¹⁾		During the third quarter of 2013, the Company corrected prior period errors related to the recognition of income and expense associated with market-linked certificates of deposits. The Company concluded that these errors were not material to the periods in which the corrections were made.

⁽²⁾		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.

⁽³⁾		Core deposits exclude brokered deposits, foreign time deposits and domestic time deposits greater than $250,000.

⁽⁴⁾		Annualized.

⁽⁵⁾		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.

⁽⁶⁾		The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income).

⁽⁷⁾		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 variable interest entities, 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 2013, 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.

⁽⁸⁾		Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.

⁽⁹⁾		Effective September 30, 2013, the Company updated the methodologies applied to the calculation of its regulatory capital ratios as the result of recent regulatory correspondence, which clarified the treatment of certain off-balance sheet credit exposures. If the Company had applied the new methodology on a retrospective basis, the Tier 1 risk-based capital ratio would have been 11.04%, 11.97%, 11.87% and 13.11% as of June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively; the Total risk-based capital ratio would have been 13.03%, 13.40%, 13.30% and 14.76% as of June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively; and the Tier 1 common capital ratio would have been 10.97%, 11.90%, 11.79% and 13.11% as of June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.

⁽¹⁰⁾		Estimated as of September 30, 2013.

⁽¹¹⁾		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.

⁽¹²⁾		The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio facilitates the understanding of 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.

⁽¹³⁾		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.

⁽¹⁴⁾		The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments.

⁽¹⁵⁾		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.

⁽¹⁶⁾		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.

⁽¹⁷⁾		Includes interest bearing trading liabilities.

⁽¹⁸⁾		Excludes loans totaling $203 million, $210 million, $125 million, $124 million, and $88 million, that are 90 days or more past due and still accruing at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, and September 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
Mimi Mengis, 415-765-3182
Investor Relations

MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - October 24, 2013

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MUFG Americas Holdings Corp Reports