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

MUFG Americas Holdings Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 26, 2015

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MUFG Americas Holdings Corp Reports

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8-K - 8-K - MUFG Americas Holdings Corp	muah-123114x8k.htm

MUFG Americas Holdings Corporation Exhibit 99.1

A member of MUFG, a global financial group

FOR IMMEDIATE RELEASE (Monday, January 26, 2015)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS FULL YEAR

NET INCOME OF $825 MILLION, UP 24 PERCENT FROM 2013

NEW YORK - MUFG Americas Holdings Corporation (the Company), parent company of San Francisco-based MUFG Union Bank, N.A. (the Bank), today reported full year 2014 results. Net income for the full year was $825 million, compared with net income of $667 million in 2013. Net income for the quarter was $155 million, compared with $246 million for the prior quarter and $179 million for the year-ago quarter.

Full Year Highlights:


◦	Net income was $825 million, up $158 million, or 24 percent, from the prior year.


◦	Pre-tax pre-provision income was $1,064 million, up $265 million, or 33 percent, from the prior year.


◦	Solid loan and deposit growth:


▪	Loans held for investment were $76.8 billion at December 31, 2014, up $8.5 billion, or 12 percent, from the prior year-end.


▪	Core deposits were $76.7 billion at December 31, 2014, up $7.5 billion, or 11 percent, from the prior year-end.


◦	Continued strong capital position:


▪	Capital ratios continued to exceed the regulatory thresholds for "well-capitalized" bank holding companies. Basel I Tier 1 and Total risk-based capital ratios were 12.79 percent and 14.73 percent, respectively, at December 31, 2014.


▪	In December 2014, the Federal Reserve Board approved the Company's request to opt-out of the advanced approaches methodology under U.S. Basel III regulatory capital rules. The Bank will continue to be subject to the advanced approaches rules.

Fourth Quarter Highlights:


◦	Net income for the fourth quarter was $155 million, down $91 million from the third quarter due to a decrease in noninterest income and increases in income tax expense and provision for loan losses.


◦	Core deposits grew 4 percent from September 30, 2014 to $76.7 billion. Loans held for investment grew 3 percent from September 30, 2014 to $76.8 billion.


◦	Continued disciplined underwriting standards produced strong credit quality with low levels of nonperforming assets and charge-offs.


▪	Nonperforming assets were $411 million, or 0.36 percent of total assets, compared with $428 million, or 0.39 percent of total assets at September 30, 2014 and $499 million, or 0.48 percent of total assets, at December 31, 2013.


▪	Net loans recovered were $1 million for the quarter, compared with net charge-offs of $12 million for the prior quarter and $11 million in the year-ago quarter.

Business Integration Initiative

Effective July 1, 2014, the U.S. branch banking operations of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) were integrated under the Bank's operations. This integration did not involve a legal entity combination, but rather an integration of personnel and certain business and support activities. The Bank and BTMU entered into a master services agreement, which provides for employees of the Bank to perform and make available various business, banking, financial, and administrative and support services (the Services) and facilities to BTMU in connection with the operation and administration of BTMU's businesses in the U.S. (including BTMU's U.S. branches). In consideration for the Services, BTMU pays to the Bank fee income, which reflects market-based pricing. Costs related to the Services performed by the transferred employees are primarily reflected as salaries and employee benefits expense.

For the quarter and year ending December 31, 2014, the Company recorded $168 million and $319 million, respectively, in fee income from this initiative, including $112 million and $206 million, respectively, related to support services provided by the Company to BTMU. Noninterest expense related to the Services was $105 million and $193 million for the quarter and year ending December 31, 2014, respectively, primarily comprised of salaries and employee benefits. The remaining fee income was recognized through revenue sharing agreements with BTMU, with associated costs included within the Company’s results.

Full Year 2014 Results

For the full year 2014, net income was $825 million, compared with net income of $667 million in 2013. Total revenue for the full year 2014 was $4.0 billion, an increase of $0.4 billion, or 11 percent, compared with 2013. Net interest income increased $146 million, or 5 percent, primarily due to loan growth, partially offset by a lower net interest margin. Noninterest income increased $247 million, or 28 percent, primarily due to fee income from affiliates resulting from the business integration initiative. Noninterest expense increased $128 million, or 5 percent, primarily due to increased salaries and employee benefit costs from the business integration initiative. The effective tax rate for full year 2014 was 25.4 percent, compared with an effective tax rate of 23.1 percent for 2013.

Summary of Fourth Quarter Results

Fourth Quarter Total Revenue

For the fourth quarter 2014, total revenue (net interest income plus noninterest income) was $1.1 billion, down $34 million compared with the third quarter of 2014.

Net interest income increased slightly while noninterest income decreased 9 percent. Net interest income for the fourth quarter 2014 was $709 million, up slightly compared with the third quarter of 2014. The increase in net interest income was largely due to growth in loans held for investment. Average total loans held for investment increased $2.4 billion, or 3 percent, compared with the third quarter of 2014 largely due to growth in commercial and industrial loans and residential mortgages. The net interest margin was 2.81 percent, down 6 basis points from the prior quarter substantially due to lower yields on loans held for investment and investment securities reflecting the low interest rate environment, partially offset by lower funding costs. Average total deposits increased $1.8 billion, or 2 percent, during the quarter compared with the third quarter of 2014.

For the fourth quarter 2014, noninterest income was $352 million, down $36 million, or 9 percent, compared with the third quarter of 2014, largely due to higher trading account activities and investment securities gains in the prior quarter.

Compared with the fourth quarter of 2013, total revenue increased $165 million, with net interest income increasing slightly while noninterest income increased 85 percent. Noninterest income increased largely due to fees from affiliates resulting from the business integration initiative. Average total loans held for investment increased $8.2 billion, or 12 percent, compared with the fourth quarter 2013. Average total deposits increased $4.3 billion compared with the fourth quarter of 2013, with average interest bearing deposits up $0.8 billion, or 2 percent, and average noninterest bearing deposits up $3.5 billion, or 13 percent.

Fourth Quarter Noninterest Expense

Noninterest expense for the fourth quarter 2014 was $807 million, up slightly compared with the third quarter 2014 and up $118 million from the fourth quarter 2013. The increase from the fourth quarter 2013 was largely due to increased employee costs as a result of the business integration initiative. The effective tax rate for the fourth quarter of 2014 was 38.9 percent, compared with an effective tax rate of 21.7 percent for the third quarter of 2014. Income tax expense recorded in the fourth quarter includes an adjustment to align estimated expense with actual full year 2014 results.

Balance Sheet

At December 31, 2014, total assets were $113.7 billion, up $2.8 billion compared with September 30, 2014, primarily reflecting loan growth. Total loans held for investment increased 3 percent compared with the third quarter of 2014 reflecting growth in core customer segments within the commercial and industrial loan portfolio and continuing growth in residential mortgage lending in our geographic footprint, with credit quality attributes consistent with the existing portfolio.

Total liabilities were $98.5 billion, up $2.9 billion compared with September 30, 2014, primarily due to an increase in deposit growth. At December 31, 2014, total deposits were $86.0 billion, up $3.6 billion compared with September 30, 2014. Core deposits at December 31, 2014 were $76.7 billion compared with $73.6 billion at September 30, 2014.

Credit Quality

Credit quality remained strong in the fourth quarter 2014 reflected by continued low levels of nonperforming assets and a net recovery of loans previously charged off.

Nonperforming assets as of December 31, 2014 were $411 million, or 0.36 percent of total assets, compared with $428 million, or 0.39 percent of total assets, at September 30, 2014, and $499 million, or 0.48 percent of total assets at December 31, 2013.

Net loans recovered were $1 million for the fourth quarter of 2014 compared with net loans charged off of $12 million for the third quarter 2014 and $11 million for the fourth quarter 2013.

The allowance for credit losses as a percentage of total loans was 0.90 percent at December 31, 2014, compared with 0.92 percent at September 30, 2014, and 1.02 percent at December 31, 2013. The allowance for credit losses as a percentage of nonaccrual loans was 184 percent at December 31, 2014, compared with 171 percent at September 30, 2014 and 158 percent at December 31, 2013. In the fourth quarter of 2014, the overall provision for credit losses was a net reversal of $1 million, compared with a provision of $1 million for the third quarter of 2014 and a net reversal of $21 million for the fourth quarter of 2013.

Capital

The Company’s stockholder’s equity was $15.0 billion at December 31, 2014 compared with $15.1 billion at September 30, 2014.

In December 2014, the Federal Reserve Board approved the Company's request to opt-out of the advanced approaches methodology under U.S. Basel III regulatory capital rules. As required, the Company will calculate its regulatory capital ratios under the standardized approach of the U.S. Basel III rules beginning in the first quarter of 2015, with certain provisions subject to phase-in periods. The Bank will continue to be subject to the advanced approaches rules.

The Company's Tier 1 and Total risk-based capital ratios, calculated in accordance with U.S. Basel I regulatory capital rules, were 12.79 percent and 14.73 percent, respectively, at December 31, 2014. The Tier 1 common capital and tangible common equity ratios were 12.73 percent and 10.54 percent at December 31, 2014, respectively.

The Company’s estimated Common Equity Tier 1 risk-based capital ratio under U.S. Basel III regulatory capital rules (standardized approach, fully phased in) was 12.57 percent at December 31, 2014.

Non-GAAP Financial Measures

This press release contains certain references to financial measures identified as privatization transaction impact, fees from affiliates - support services and associated staff costs, foreclosed asset expense, other credit costs, (reversal of) provision for losses on unfunded credit commitments, productivity initiative costs and gains, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger and business integration costs, 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 (Tier 1 common capital, tangible common equity and Common Equity Tier 1 capital (calculated under the Basel III standardized approach on a transitional and fully phased-in basis)) to facilitate the understanding of the Company’s capital structure and for use in assessing and comparing the quality and composition of the Company's capital structure to 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 New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with assets of $113.7 billion at December 31, 2014. Its principal subsidiary, MUFG Union Bank, N.A., provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. As of December 31, 2014, MUFG Union Bank, N.A. operated 414 branches, comprised primarily of retail banking branches in the West Coast states, along with commercial branches in Texas, Illinois, New York and Georgia, as well as two international offices. MUFG Americas Holdings Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd. which is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc., one of the world’s largest and most diversified financial groups. Visit www.unionbank.com for more information.

###

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															December 31, 2014 from
(Dollars in millions)	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2014		December 31, 2013
Results of operations:
Net interest income	$	709		$	707		$	763		$	683		$	706		—	%	—	%
Noninterest income	352			388			202			181			190			(9	)	85
Total revenue	1,061			1,095			965			864			896			(3	)	18
Noninterest expense	807			805			649			660			689			—		17
Pre-tax, pre-provision income ⁽¹⁾	254			290			316			204			207			(12	)	23
(Reversal of) provision for loan losses	9			(18		)	9			(16		)	(23		)	150		139
Income before income taxes and including
noncontrolling interests	245			308			307			220			230			(20	)	7
Income tax expense	95			67			62			50			55			42		73
Net income including noncontrolling interests	150			241			245			170			175			(38	)	(14	)
Deduct: Net loss from noncontrolling interests	5			5			4			5			4			—		25
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	155		$	246		$	249		$	175		$	179		(37	)	(13	)

Balance sheet (end of period):
Total assets	$	113,678		$	110,879		$	108,820		$	107,237		$	105,894		3		7
Total securities	22,015			22,522			22,847			23,192			22,326			(2	)	(1	)
Total loans held for investment	76,804			74,635			72,369			69,933			68,312			3		12
Core deposits ⁽²⁾	76,666			73,608			72,058			70,665			69,155			4		11
Total deposits	86,004			82,356			81,566			81,179			80,101			4		7
Long-term debt	6,972			6,984			6,995			6,545			6,547			—		6
MUAH stockholder's equity	14,985			15,051			14,815			14,460			14,215			—		5

Balance sheet (period average):
Total assets	$	112,589		$	109,739		$	107,871		$	106,491		$	104,424		3		8
Total securities	22,171			22,592			22,865			22,611			22,282			(2	)	—
Total loans held for investment	75,795			73,353			71,104			69,293			67,619			3		12
Earning assets	101,430			98,933			97,405			96,100			94,707			3		7
Total deposits	84,036			82,239			81,221			80,433			79,747			2		5
MUAH stockholder's equity	15,202			14,969			14,657			14,390			12,604			2		21

Performance ratios:
Return on average assets ⁽³⁾	0.55		%	0.90		%	0.92		%	0.66		%	0.68		%
Return on average MUAH stockholder's equity ⁽³⁾	4.06			6.57			6.80			4.87			5.66
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}	0.62			0.94			0.97			0.72			0.75
Return on average MUAH stockholder's equity excluding the
impact of privatization transaction and merger costs related to
acquisitions ^{(3) (4)}	5.27			7.84			8.19			6.11			7.41
Efficiency ratio ⁽⁵⁾	76.12			73.51			67.23			76.38			76.89
Adjusted efficiency ratio ⁽⁶⁾	67.24			63.42			60.30			67.95			67.08
Net interest margin ^{(3) (7)}	2.81			2.87			3.15			2.87			2.99

Capital ratios:

Regulatory:	U.S. Basel I			U.S. Basel III									U.S. Basel I
Common Equity Tier 1 risk-based capital ratio^{(8) (9)}	n/a			12.66		%	12.58		%	12.59		%	n/a
Tier 1 risk-based capital ratio ^{(8) (9)}	12.79		%	12.70			12.62			12.62			12.41		%
Total risk-based capital ratio ^{(8) (9)}	14.73			14.60			14.57			14.75			14.61
Tier 1 leverage ratio ^{(8) (9)}	11.25			11.43			11.35			11.26			11.27

Other:
Tangible common equity ratio ⁽¹¹⁾	10.54		%	10.79		%	10.84		%	10.65		%	10.54		%
Tier 1 common capital ratio ^{(8) (9) (10)}	12.73			n/a			n/a			n/a			12.34
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) ^{(8) (12)}	12.85			n/a			n/a			n/a			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III
standardized approach; fully phased in) ^{(8) (13)}	12.57			12.47			12.13			11.98			11.51

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 1

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



	As of and for the Year Ended						Percent Change to
	December 31,			December 31,			December 31, 2014 from
(Dollars in millions)	2014			2013			December 31, 2013
Results of operations:
Net interest income	$	2,862		$	2,716			5	%
Noninterest income	1,123			876				28
Total revenue	3,985			3,592				11
Noninterest expense	2,921			2,793				5
Pre-tax, pre-provision income ⁽¹⁾	1,064			799				33
(Reversal of) provision for loan losses	(16		)	(45		)		64
Income before income taxes and including
noncontrolling interests	1,080			844				28
Income tax expense	274			195				41
Net income including noncontrolling interests	806			649				24
Deduct: Net loss from noncontrolling interests	19			18				6
Net income attributable to MUAH	$	825		$	667			24

Balance sheet (end of period):
Total assets	$	113,678		$	105,894			7
Total securities	22,015			22,326				(1	)
Total loans held for investment	76,804			68,312				12
Core deposits ⁽²⁾	76,666			69,155				11
Total deposits	86,004			80,101				7
Long-term debt	6,972			6,547				6
MUAH stockholder's equity	14,985			14,215				5

Balance sheet (period average):
Total assets	$	109,186		$	100,355			9
Total securities	22,559			22,552				—
Total loans held for investment	72,406			64,638				12
Earning assets	98,482			90,797				8
Total deposits	81,988			76,714				7
MUAH stockholder's equity	14,808			12,499				18

Performance ratios:
Return on average assets ⁽³⁾	0.76		%	0.66		%
Return on average MUAH stockholder's equity ⁽³⁾	5.57			5.33
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(3) (4)}	0.81			0.74
Return on average MUAH stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(3) (4)}	6.84			7.06
Efficiency ratio ⁽⁵⁾	73.31			77.74
Adjusted efficiency ratio ⁽⁶⁾	64.63			67.85
Net interest margin ^{(3) (7)}	2.93			3.01

___________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 2

MUFG Americas Holdings Corporation and Subsidiaries

Credit Quality (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															December 31, 2014 from
(Dollars in millions)	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2014		December 31, 2013

Credit Data:
(Reversal of) provision for loan losses, excluding purchased credit-impaired loans	$	9		$	(18	)	$	9		$	(18	)	$	(22	)	150	%	141	%
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification	—			—			—			2			(1		)	-		100
(Reversal of) provision for losses on unfunded credit commitments	(10		)	19			(3		)	16			2			(153	)	nm
Total (reversal of) provision for credit losses	$	(1	)	$	1		$	6		$	—		$	(21	)	(200	)	95

Net loans charged-off (recovered)	$	(1	)	$	12		$	7		$	(6	)	$	11		(108	)	(109	)
Nonperforming assets	411			428			547			506			499			(4	)	(18	)
Criticized loans held for investment ⁽¹⁴⁾	1,141			1,245			1,450			1,317			1,274			(8	)	(10	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.70		%	0.71		%	0.77		%	0.80		%	0.83		%
Nonaccrual loans	143.35			131.28			108.90			119.58			128.42
Allowance for credit losses to ⁽¹⁵⁾:
Total loans held for investment	0.90			0.92			0.97			1.01			1.02
Nonaccrual loans	183.80			171.42			137.13			151.35			158.30
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	—			0.06			0.04			(0.04		)	0.07
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.53			0.57			0.75			0.72			0.74
Nonperforming assets to total assets	0.36			0.39			0.50			0.47			0.48
Nonaccrual loans to total loans held for investment	0.49			0.54			0.71			0.67			0.65


	As of and for the Year Ended						Percent Change
	December 31,			December 31,			to December 31, 2014
(Dollars in millions)	2014			2013			from December 31, 2013
Credit Data:
(Reversal of) provision for loan losses, excluding purchased credit-impaired loans	$	(18	)	$	(44	)	59%
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification	2			(1		)	300
(Reversal of) provision for losses on unfunded credit commitments	22			16			38
Total (reversal of) provision for credit losses	$	6		$	(29	)	121

Net loans charged-off	$	12		$	32		(63)
Nonperforming assets	411			499			(18)
Credit Ratios:
Net loans charged-off to average total loans held for investment	0.02		%	0.05		%
Nonperforming assets to total assets	0.36			0.48

________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 3

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Three Months Ended
(Dollars in millions)			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Interest Income
	Loans		$	696		$	693		$	749		$	667		$	695
	Securities		109			113			115			115			115
	Other		3			2			3			5			6
		Total interest income	808			808			867			787			816

Interest Expense
	Deposits		57			58			61			62			64
	Commercial paper and other short-term borrowings		1			1			2			1			1
	Long-term debt		41			42			41			41			45
		Total interest expense	99			101			104			104			110

Net Interest Income			709			707			763			683			706
	(Reversal of) provision for loan losses		9			(18		)	9			(16		)	(23		)
		Net interest income after (reversal of) provision for loan losses	700			725			754			699			729

Noninterest Income
	Service charges on deposit accounts		50			52			50			51			51
	Trust and investment management fees		26			26			26			26			28
	Trading account activities		8			33			14			16			20
	Securities gains, net		2			13			1			2			8
	Credit facility fees		33			30			31			28			28
	Merchant banking fees		35			38			27			24			25
	Brokerage commissions and fees		13			14			13			13			12
	Card processing fees, net		9			8			9			8			8
	Fees from affiliates ⁽¹⁶⁾		168			151			—			—			—
	Other, net		8			23			31			13			10
		Total noninterest income	352			388			202			181			190

Noninterest Expense
	Salaries and employee benefits		527			492			378			388			406
	Net occupancy and equipment		76			74			75			71			70
	Professional and outside services		72			66			63			55			64
	Intangible asset amortization		13			13			13			13			16
	Regulatory assessments		13			13			16			15			14
	(Reversal of) provision for losses on unfunded credit commitments		(10		)	19			(3		)	16			2
	Other		116			128			107			102			117
		Total noninterest expense	807			805			649			660			689

	Income before income taxes and including
	noncontrolling interests		245			308			307			220			230
	Income tax expense		95			67			62			50			55
Net Income including Noncontrolling Interests			150			241			245			170			175
	Deduct: Net loss from noncontrolling interests		5			5			4			5			4
Net Income attributable to MUAH			$	155		$	246		$	249		$	175		$	179

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 4

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Years Ended
(Dollars in millions)			December 31, 2014			December 31, 2013
Interest Income
	Loans		$	2,805		$	2,641
	Securities		452			469
	Other		13			13
		Total interest income	3,270			3,123

Interest Expense
	Deposits		238			248
	Commercial paper and other short-term borrowings		5			5
	Long-term debt		165			154
		Total interest expense	408			407

Net Interest Income			2,862			2,716
	(Reversal of) provision for loan losses		(16		)	(45		)
		Net interest income after (reversal of) provision for loan losses	2,878			2,761

Noninterest Income
	Service charges on deposit accounts		203			209
	Trust and investment management fees		104			135
	Trading account activities		71			61
	Securities gains, net		18			178
	Credit facility fees		122			111
	Merchant banking fees		124			93
	Brokerage commissions and fees		53			46
	Card processing fees, net		34			34
	Fees from affiliates ⁽¹⁶⁾		319			—
	Other, net		75			9
		Total noninterest income	1,123			876

Noninterest Expense
	Salaries and employee benefits		1,785			1,631
	Net occupancy and equipment		296			306
	Professional and outside services		256			250
	Intangible asset amortization		52			65
	Regulatory assessments		57			74
	(Reversal of) provision for losses on unfunded credit commitments		22			16
	Other		453			451
		Total noninterest expense	2,921			2,793

	Income before income taxes and including
	noncontrolling interests		1,080			844
	Income tax expense		274			195
Net Income including Noncontrolling Interests			806			649
	Deduct: Net loss from noncontrolling interests		19			18
Net Income attributable to MUAH			$	825		$	667

___________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 5

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)



(Dollars in millions except for per share amount)				December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Assets
Cash and due from banks				$	1,759		$	1,593		$	1,911		$	1,792		$	1,863
Interest bearing deposits in banks				3,930			2,772			2,353			2,883			4,329
Federal funds sold and securities purchased under resale agreements				62			154			65			32			11
		Total cash and cash equivalents		5,751			4,519			4,329			4,707			6,203
Trading account assets				1,114			883			941			841			851
Securities available for sale				13,724			14,064			14,670			15,366			15,817
Securities held to maturity:
	Securities held to maturity			8,291			8,458			8,177			7,826			6,509
Loans held for investment				76,804			74,635			72,369			69,933			68,312
	Allowance for loan losses			(537		)	(529		)	(559		)	(557		)	(568		)
		Loans held for investment, net		76,267			74,106			71,810			69,376			67,744
Premises and equipment, net				621			617			632			641			688
Goodwill				3,225			3,227			3,227			3,227			3,228
Other assets				4,685			5,005			5,034			5,253			4,854
			Total assets	$	113,678		$	110,879		$	108,820		$	107,237		$	105,894

Liabilities
Deposits:
	Noninterest bearing			$	30,534		$	28,676		$	27,446		$	26,881		$	26,495
	Interest bearing			55,470			53,680			54,120			54,298			53,606
		Total deposits		86,004			82,356			81,566			81,179			80,101
Commercial paper and other short-term borrowings				2,704			3,876			2,870			2,660			2,563
Long-term debt				6,972			6,984			6,995			6,545			6,547
Trading account liabilities				894			596			664			531			540
Other liabilities				1,889			1,777			1,666			1,611			1,675
			Total liabilities	98,463			95,589			93,761			92,526			91,426

Equity
MUAH stockholder's equity:
	Common stock, par value $1 per share:
		Authorized 300,000,000 shares; 136,330,831 shares issued and outstanding as of December 31, 2014 and September 30, 2014; and 136,330,830 as of June 30, 2014, March 31, 2014, and December 31, 2013 respectively		136			136			136			136			136
	Additional paid-in capital			7,232			7,223			7,184			7,196			7,191
	Retained earnings			8,346			8,191			7,936			7,687			7,512
	Accumulated other comprehensive loss			(729		)	(499		)	(441		)	(559		)	(624		)
			Total MUAH stockholder's equity	14,985			15,051			14,815			14,460			14,215
Noncontrolling interests				230			239			244			251			253
			Total equity	15,215			15,290			15,059			14,711			14,468
			Total liabilities and equity	$	113,678		$	110,879		$	108,820		$	107,237		$	105,894

________________________________________



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	December 31, 2014							September 30, 2014
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁷⁾
Commercial and industrial	$	27,138		$	228	3.33	%	$	25,746		$	220	3.39	%
Commercial mortgage	13,833			117		3.39		13,643			122		3.57
Construction	1,557			12		3.00		1,336			10		3.12
Lease financing	810			10		4.97		811			12		5.69
Residential mortgage	28,738			253		3.52		27,967			250		3.58
Home equity and other consumer loans	3,137			33		4.20		3,164			32		4.08
Loans, before purchased credit-impaired loans	75,213			653		3.46		72,667			646		3.54
Purchased credit-impaired loans	582			44		30.08		686			48		27.70
Total loans held for investment	75,795			697		3.67		73,353			694		3.77
Securities	22,171			113		2.04		22,592			117		2.08
Interest bearing deposits in banks	2,788			2		0.26		2,380			2		0.26
Federal funds sold and securities purchased under resale agreements	149			—		0.05		106			—		—
Trading account assets	196			—		0.72		164			—		0.66
Other earning assets	331			1		0.68		338			1		0.73
Total earning assets	101,430			813		3.20		98,933			814		3.28
Allowance for loan losses	(533		)					(566		)
Cash and due from banks	1,727							1,597
Premises and equipment, net	614							626
Other assets	9,351							9,149
Total assets	$	112,589						$	109,739
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,762		33		0.33		$	39,128		33		0.34
Savings	5,555			1		0.08		5,574			2		0.08
Time	9,133			23		0.97		9,766			23		0.96
Total interest bearing deposits	54,450			57		0.41		54,468			58		0.42
Commercial paper and other short-term borrowings ⁽¹⁸⁾	3,257			1		0.19		2,820			1		0.17
Long-term debt	6,983			41		2.36		6,994			42		2.38
Total borrowed funds	10,240			42		1.67		9,814			43		1.75
Total interest bearing liabilities	64,690			99		0.61		64,282			101		0.63
Noninterest bearing deposits	29,586							27,771
Other liabilities	2,873							2,474
Total liabilities	97,149							94,527
Equity
MUAH Stockholder's equity	15,202							14,969
Noncontrolling interests	238							243
Total equity	15,440							15,212
Total liabilities and equity	$	112,589						$	109,739

Net interest income/spread (taxable-equivalent basis)				714		2.59	%				713		2.65	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.81							2.87
Less: taxable-equivalent adjustment				5							6
Net interest income				$	709						$	707

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	December 31, 2014							December 31, 2013
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁷⁾
Commercial and industrial	$	27,138		$	228	3.33	%	$	23,176		$	196	3.35	%
Commercial mortgage	13,833			117		3.39		12,984			123		3.78
Construction	1,557			12		3.00		868			7		3.46
Lease financing	810			10		4.97		981			8		3.43
Residential mortgage	28,738			253		3.52		25,143			231		3.67
Home equity and other consumer loans	3,137			33		4.20		3,305			35		4.13
Loans, before purchased credit-impaired loans	75,213			653		3.46		66,457			600		3.60
Purchased credit-impaired loans	582			44		30.08		1,162			96		32.75
Total loans held for investment	75,795			697		3.67		67,619			696		4.10
Securities	22,171			113		2.04		22,282			118		2.12
Interest bearing deposits in banks	2,788			2		0.26		4,242			3		0.26
Federal funds sold and securities purchased under resale agreements	149			—		0.05		138			—		0.09
Trading account assets	196			—		0.72		203			2		4.36
Other earning assets	331			1		0.68		223			1		1.89
Total earning assets	101,430			813		3.20		94,707			820		3.45
Allowance for loan losses	(533		)					(618		)
Cash and due from banks	1,727							1,553
Premises and equipment, net	614							678
Other assets	9,351							8,104
Total assets	$	112,589						$	104,424
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,762		33		0.33		$	36,636		35		0.38
Savings	5,555			1		0.08		5,576			1		0.13
Time	9,133			23		0.97		11,431			28		0.96
Total interest bearing deposits	54,450			57		0.41		53,643			64		0.48
Commercial paper and other short-term borrowings ⁽¹⁸⁾	3,257			1		0.19		2,562			1		0.22
Long-term debt	6,983			41		2.36		7,094			45		2.52
Total borrowed funds	10,240			42		1.67		9,656			46		1.91
Total interest bearing liabilities	64,690			99		0.61		63,299			110		0.69
Noninterest bearing deposits	29,586							26,104
Other liabilities	2,873							2,160
Total liabilities	97,149							91,563
Equity
MUAH Stockholder's equity	15,202							12,604
Noncontrolling interests	238							257
Total equity	15,440							12,861
Total liabilities and equity	$	112,589						$	104,424

Net interest income/spread (taxable-equivalent basis)				714		2.59	%				710		2.76	%
Impact of noninterest bearing deposits						0.19							0.20
Impact of other noninterest bearing sources						0.03							0.30
Net interest margin						2.81							2.99
Less: taxable-equivalent adjustment				5							4
Net interest income				$	709						$	706

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Year Ended
	December 31, 2014							December 31, 2013
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁷⁾
Commercial and industrial	$	25,321		$	848	3.35	%	$	22,294		$	750	3.36	%
Commercial mortgage	13,560			482		3.56		11,928			453		3.80
Construction	1,256			40		3.20		787			29		3.74
Lease financing	827			47		5.71		1,018			36		3.57
Residential mortgage	27,449			988		3.60		23,903			898		3.76
Home equity and other consumer loans	3,181			129		4.08		3,447			135		3.92
Loans, before purchased credit-impaired loans	71,594			2,534		3.54		63,377			2,301		3.63
Purchased credit-impaired loans	812			273		33.54		1,261			341		27.03
Total loans held for investment	72,406			2,807		3.88		64,638			2,642		4.09
Securities	22,559			470		2.09		22,552			483		2.14
Interest bearing deposits in banks	2,898			8		0.25		3,067			8		0.25
Federal funds sold and securities purchased under resale agreements	122			—		0.06		133			—		0.15
Trading account assets	205			3		1.54		163			3		1.62
Other earning assets	292			3		0.87		244			2		0.91
Total earning assets	98,482			3,291		3.34		90,797			3,138		3.46
Allowance for loan losses	(559		)					(636		)
Cash and due from banks	1,566							1,405
Premises and equipment, net	632							695
Other assets	9,065							8,094
Total assets	$	109,186						$	100,355
Liabilities
Interest bearing deposits:
Transaction and money market accounts	38,517			137		0.36		33,904			114		0.34
Savings	5,573			5		0.09		5,682			7		0.13
Time	10,211			96		0.94		12,115			127		1.04
Total interest bearing deposits	54,301			238		0.44		51,701			248		0.48
Commercial paper and other short-term borrowings ⁽¹⁸⁾	2,809			5		0.19		2,751			5		0.20
Long-term debt	6,863			165		2.40		5,998			154		2.56
Total borrowed funds	9,672			170		1.76		8,749			159		1.82
Total interest bearing liabilities	63,973			408		0.64		60,450			407		0.67
Noninterest bearing deposits	27,687							25,013
Other liabilities	2,472							2,128
Total liabilities	94,132							87,591
Equity
MUAH Stockholder's equity	14,808							12,499
Noncontrolling interests	246							265
Total equity	15,054							12,764
Total liabilities and equity	$	109,186						$	100,355

Net interest income/spread (taxable-equivalent basis)				2,883		2.70	%				2,731		2.79	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.04							0.03
Net interest margin						2.93							3.01
Less: taxable-equivalent adjustment				21							15
Net interest income				$	2,862						$	2,716

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 9

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



(Dollars in millions)					December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	27,623	$	26,429	$	25,162	$	23,654	$	23,528
		Commercial mortgage			14,016		13,766		13,549		13,568		13,092
		Construction			1,746		1,436		1,248		1,019		905
		Lease financing			800		811		829		845		854
			Total commercial portfolio		44,185		42,442		40,788		39,086		38,379

		Residential mortgage			28,977		28,425		27,619		26,602		25,547
		Home equity and other consumer loans			3,117		3,141		3,178		3,194		3,280
			Total consumer portfolio		32,094		31,566		30,797		29,796		28,827
				Loans held for investment, before purchased credit-impaired loans	76,279		74,008		71,585		68,882		67,206
		Purchased credit-impaired loans			525		627		784		1,051		1,106

				Total loans held for investment	$	76,804	$	74,635	$	72,369	$	69,933	$	68,312

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	55	$	71	$	161	$	89	$	44
		Commercial mortgage			40		34		47		46		51
			Total commercial portfolio		95		105		208		135		95

		Residential mortgage			231		239		243		266		286
		Home equity and other consumer loans			40		46		46		49		46
			Total consumer portfolio		271		285		289		315		332

				Nonaccrual loans, before purchased credit-impaired loans	366		390		497		450		427
		Purchased credit-impaired loans			9		13		17		16		15
				Total nonaccrual loans	375		403		514		466		442

	OREO				12		12		14		17		20
	FDIC covered OREO				24		13		19		23		37

				Total nonperforming assets	$	411	$	428	$	547	$	506	$	499

				Total nonperforming assets, excluding purchased credit-impaired
				loans and FDIC covered OREO	$	378	$	402	$	511	$	467	$	447

	Loans 90 days or more past due and still accruing ⁽¹⁹⁾				$	3	$	4	$	11	$	4	$	5

__________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 10

MUFG Americas Holdings Corporation and Subsidiaries

Allowance for Credit Losses (Unaudited)



	As of and for the Three Months Ended
(Dollars in millions)	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	529		$	559		$	557		$	568		$	608
(Reversal of) provision for loan losses, excluding purchased credit-impaired loans	9			(18		)	9			(18		)	(22		)
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification	—			—			—			2			(1		)
Increase (decrease) in allowance covered by FDIC indemnification	—			—			—			—			(6		)
Other	(2		)	—			—			(1		)	—
Loans charged-off:
Commercial and industrial	(8		)	(15		)	(6		)	(5		)	(18		)
Commercial mortgage	(1		)	—			(2		)	(1		)	(2		)
Total commercial portfolio	(9		)	(15		)	(8		)	(6		)	(20		)
Residential mortgage	—			—			(2		)	(1		)	(1		)
Home equity and other consumer loans	(2		)	(2		)	(2		)	(2		)	(4		)
Total consumer portfolio	(2		)	(2		)	(4		)	(3		)	(5		)
Purchased credit-impaired loans	—			(1		)	—			—			—
Total loans charged-off	(11		)	(18		)	(12		)	(9		)	(25		)
Recoveries of loans previously charged-off:
Commercial and industrial	10			3			3			11			6
Commercial mortgage	—			2			1			—			—
Construction	—			—			—			3			—
Lease financing	—			—			—			—			1
Total commercial portfolio	10			5			4			14			7
Home equity and other consumer loans	2			—			1			1			—
Total consumer portfolio	2			—			1			1			—
Purchased credit-impaired loans	—			1			—			—			7
Total recoveries of loans previously charged-off	12			6			5			15			14
Net loans recovered (charged-off)	1			(12		)	(7		)	6			(11		)

Ending balance of allowance for loan losses	537			529			559			557			568
Allowance for losses on unfunded credit commitments	152			162			145			148			132
Total allowance for credit losses	$	689		$	691		$	704		$	705		$	700

Components of allowance for loan losses and credit losses:
Allowance for loan losses, excluding allowance on purchased credit-impaired loans	$	534		$	526		$	556		$	554		$	567
Allowance for loan losses on purchased credit-impaired loans	3			3			3			3			1
Total allowance for loan losses	$	537		$	529		$	559		$	557		$	568



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			December 31, 2014				September 30, 2014				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		September 30, 2014			September 30, 2014
Asset Liability Management securities:
U.S. Treasury			$	—	$	—	$	70	$	70	$	(70	)	100	%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		7,649		7,560		7,886		7,739		(179		)	(2	)
	Privately issued		166		168		175		177		(9		)	(5	)
Privately issued - commercial mortgage-backed securities			1,689		1,691		1,770		1,745		(54		)	(3	)
Collateralized loan obligations			2,527		2,494		2,438		2,422		72			3
Asset-backed and other			8		9		13		14		(5		)	(36	)
		Asset Liability Management securities	12,039		11,922		12,352		12,167		(245		)	(2	)
Other debt securities:
Direct bank purchase bonds			1,719		1,741		1,819		1,833		(92		)	(5	)
Other			53		52		54		52		—			—
Equity securities			8		9		10		12		(3		)	(25	)
		Total securities available for sale	$	13,819	$	13,724	$	14,235	$	14,064	$	(340	)	(2	)%

Securities Held to Maturity

			December 31, 2014				September 30, 2014				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²⁰⁾		Value		Amount ⁽²⁰⁾		Value		September 30, 2014			September 30, 2014
U.S. Treasury			$	486	$	489	$	485	$	484	$	1		—	%
U.S. government-sponsored agencies			125		125		125		125		—			—
U.S. government agency and government-sponsored
	agencies - residential mortgage-backed securities		5,942		6,013		6,102		6,107		(160		)	(3	)
U.S. government agency and government-sponsored
	agencies - commercial mortgage-backed securities		1,738		1,785		1,746		1,775		(8		)	—
		Total securities held to maturity	$	8,291	$	8,412	$	8,458	$	8,491	$	(167	)	(2	)%

___________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 12

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

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



		As of and for the Three Months Ended
(Dollars in millions)		December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Net income attributable to MUAH		$	155		$	246		$	249		$	175		$	179
Net adjustments for merger costs related to acquisitions, net of tax		12			13			15			11			12
Net adjustments for privatization transaction, net of tax		6			(8		)	(9		)	1			2
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	173		$	251		$	255		$	187		$	193

Average total assets		$	112,589		$	109,739		$	107,871		$	106,491		$	104,424
Less: Net adjustments related to privatization transaction		2,244			2,255			2,260			2,272			2,297
Average total assets, excluding impact of privatization transaction		$	110,345		$	107,484		$	105,611		$	104,219		$	102,127
Return on average assets ⁽³⁾		0.55		%	0.90		%	0.92		%	0.66		%	0.68		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(3) (4)}	0.62			0.94			0.97			0.72			0.75

Average MUAH stockholder's equity		$	15,202		$	14,969		$	14,657		$	14,390		$	12,604
Less: Adjustments for merger costs related to acquisitions		(157		)	(147		)	(132		)	(118		)	(105		)
Less: Net adjustments for privatization transaction		2,279			2,290			2,297			2,302			2,306
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,080		$	12,826		$	12,492		$	12,206		$	10,403
Return on average MUAH stockholder's equity ⁽³⁾		4.06		%	6.57		%	6.80		%	4.87		%	5.66		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(3) (4)}	5.27			7.84			8.19			6.11			7.41

Noninterest expense		$	807		$	805		$	649		$	660		$	689
Less: Staff costs associated with fees from affiliates - support services		105			88			—			—			—
Less: Foreclosed asset expense and other credit costs		(2		)	(1		)	1			—			2
Less: (Reversal of) provision for losses on unfunded credit commitments		(10		)	19			(3		)	16			2
Less: Productivity initiative costs		2			6			4			1			20
Less: Low income housing credit (LIHC) investment amortization expense		24			25			20			20			24
Less: Expenses of the LIHC consolidated VIEs		8			8			8			8			6
Less: Merger and business integration costs		20			22			25			17			25
Less: Net adjustments related to privatization transaction		10			11			10			10			14
Less: Intangible asset amortization		3			3			3			3			3
	Noninterest expense, as adjusted (a)	$	647		$	624		$	581		$	585		$	593

Total revenue		$	1,061		$	1,095		$	965		$	864		$	896
Add: Net interest income taxable-equivalent adjustment		5			6			5			5			4
Less: Fees from affiliates - support services		112			94			—			—			—
Less: Productivity initiative gains		(1		)	—			—			—			6
Less: Accretion related to privatization-related fair value adjustments		(1		)	4			9			6			8
Less: Other credit costs		(6		)	17			(2		)	2			1
	Total revenue, as adjusted (b)	$	962		$	986		$	963		$	861		$	885
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		67.24		%	63.42		%	60.30		%	67.95		%	67.08		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 13

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		As of and for the Three Months Ended
(Dollars in millions)		December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Total MUAH stockholder's equity		$	14,985		$	15,051		$	14,815		$	14,460		$	14,215
Less: Goodwill		3,225			3,227			3,227			3,227			3,228
Less: Intangible assets, except mortgage servicing rights (MSRs)		233			249			262			275			288
Less: Deferred tax liabilities related to goodwill and intangible assets		(99		)	(20		)	(99		)	(102		)	(105		)
	Tangible common equity (c)	$	11,626		$	11,595		$	11,425		$	11,060		$	10,804
Total assets		$	113,678		$	110,879		$	108,820		$	107,237		$	105,894
Less: Goodwill		3,225			3,227			3,227			3,227			3,228
Less: Intangible assets, except MSRs		233			249			262			275			288
Less: Deferred tax liabilities related to goodwill and intangible assets		(99		)	(20		)	(99		)	(102		)	(105		)
	Tangible assets (d)	$	110,319		$	107,423		$	105,430		$	103,837		$	102,483
Tangible common equity ratio (c)/(d) ⁽¹¹⁾		10.54		%	10.79		%	10.84		%	10.65		%	10.54		%

Tier 1 capital, determined in accordance with U.S. Basel I regulatory requirements		$	12,370		n/a			n/a			n/a			$	11,471
Less: Junior subordinated debt payable to trusts		52			n/a			n/a			n/a			66
	U.S. Basel I Tier 1 common capital (e)	$	12,318		n/a			n/a			n/a			$	11,405
Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (f)		$	12,453		$	12,300		$	11,964		$	11,750		$	11,406
Other ⁽⁹⁾		(105		)	(121		)	(130		)	(138		)	(258		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (g)	$	12,348		$	12,179		$	11,834		$	11,612		$	11,148
Risk-weighted assets, determined in accordance with U.S. Basel I regulatory requirements (h)		$	96,742		n/a			n/a			n/a			$	92,410
Add: Adjustments		191			n/a			n/a			n/a			n/a
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (i)		96,933			$	96,239		$	94,556		$	92,476		n/a
Add: Adjustments		1,285			1,441			2,963			4,427			4,446
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased in) (j)	$	98,218		$	97,680		$	97,519		$	96,903		$	96,856
Tier 1 common capital ratio (e)/(h) ^{(8) (9) (10)}		12.73		%	n/a			n/a			n/a			12.34		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) (f)/(i) ^{(8) (12)}		12.85			n/a			n/a			n/a			n/a
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) (g)/(j) ^{(8) (13)}		12.57			12.47		%	12.13		%	11.98		%	11.51

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 14

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		For the Year Ended
		December 31,			December 31,
(Dollars in millions)		2014			2013

Net income attributable to MUAH		$	825		$	667
Net adjustments for merger costs related to acquisitions, net of tax		51			78
Net adjustments for privatization transaction, net of tax		(10		)	(21		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	866		$	724

Average total assets		$	109,186		$	100,355
Less: Net adjustments related to privatization transaction		2,258			2,313
Average total assets, excluding impact of privatization transaction		$	106,928		$	98,042
Return on average assets ⁽³⁾		0.76		%	0.66		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions ^{(3) (4)}	0.81			0.74

Average MUAH stockholder's equity		$	14,808		$	12,499
Less: Adjustments for merger costs related to acquisitions		(139		)	(80		)
Less: Net adjustments for privatization transaction		2,292			2,329
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	12,655		$	10,250
Return on average MUAH stockholder's equity ⁽³⁾		5.57		%	5.33		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions ^{(3) (4)}	6.84			7.06

Noninterest expense		$	2,921		$	2,793
Less: Staff costs associated with fees from affiliates - support services		193			—
Less: Foreclosed asset expense and other credit costs		(2		)	(4		)
Less: (Reversal of) provision for losses on unfunded credit commitments		22			16
Less: Productivity initiative costs		13			51
Less: Low income housing credit (LIHC) investment amortization expense		89			76
Less: Expenses of the LIHC consolidated VIEs		32			29
Less: Merger and business integration costs		84			134
Less: Net adjustments related to privatization transaction		41			55
Less: Intangible asset amortization		12			13
	Noninterest expense, as adjusted (a)	$	2,437		$	2,423

Total revenue		$	3,985		$	3,592
Add: Net interest income taxable-equivalent adjustment		21			15
Less: Fees from affiliates - support services		206			—
Less: Productivity initiative gains		(1		)	17
Less: Accretion related to privatization-related fair value adjustments		18			24
Less: Other credit costs		11			(5		)
	Total revenue, as adjusted (b)	$	3,772		$	3,571
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		64.63		%	67.85		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 15

MUFG Americas Holdings Corporation and Subsidiaries

Footnotes


(1)	Pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover 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 the Company's business results. Please refer to Exhibits 13 and 15 for reconciliations between certain GAAP amounts and these non-GAAP measures.


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

(6)

The adjusted efficiency ratio, a non-GAAP financial measure, is adjusted noninterest expense (noninterest expense excluding staff costs associated with fees from affiliates - support services, foreclosed asset expense and other credit costs, (reversal of) provision for losses on unfunded credit commitments, certain costs related to productivity initiatives, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger and business integration costs, privatization-related expenses, and intangible asset amortization) as a percentage of adjusted total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding the impact of fees from affiliates - support services, gains from productivity initiatives related to the sale of certain business units and premises, accretion related to privatization-related fair value adjustments, 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 Exhibits 13 and 15 for reconciliations between certain GAAP amounts and these non-GAAP measures.


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


(8)	Estimated as of December 31, 2014.


(9)	The capital ratios as of December 31, 2014 and 2013 are calculated under U.S. Basel I rules. The capital ratios displayed as of September 30, 2014, June 30, 2014, and March 31, 2014 are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' revised capital framework for implementing the final U.S. Basel III regulatory capital rules.

(10)

The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, facilitates the understanding of the Company's capital structure and may be used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(11)

The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio facilitates the understanding of the Company's capital structure and is used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(12)

In December 2014, the Federal Reserve Board approved the Company's request to opt-out of the advanced approaches methodology under U.S. Basel III regulatory capital rules. Common Equity Tier 1 risk-based capital is calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' revised capital framework for implementing the final U.S. Basel III regulatory capital rules. Management reviews this ratio, which excludes accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information, and the corresponding reconciliation from Tier 1 capital (determined in accordance with U.S. Basel I) because of current interest in such information by market participants. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(13)

Common Equity Tier 1 risk-based capital (standardized, fully phased-in basis) is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies as if the transition provisions of the U.S. Basel III rules were fully phased in for the periods in which the ratio is disclosed. Management reviews this ratio, which excludes accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information, and the corresponding reconciliation from Tier 1 capital (determined in accordance with U.S. Basel I) because of current interest in such information by market participants. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.


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


(15)	The allowance for credit losses ratios include the allowances for loan losses and losses on unfunded credit commitments against end of period total loans held for investment or total nonaccrual loans, as appropriate.


(16)	Fees from affiliates represents income resulting from the July 1, 2014 business integration initiative.


(17)	Average balances on loans held for investment 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.


(18)	Includes interest bearing trading liabilities.

(19)

Excludes loans totaling $47 million, $65 million, $103 million, $123 million, and $124 million that are 90 days or more past due and still accruing at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively, which consist of loans accounted for within loan pools in accordance with the accounting standards for purchased credit-impaired loans. The past due status of individual loans within the pools is not a meaningful indicator of credit quality, as potential credit losses are measured at the loan pool level.


(20)	Carrying amount reflects amortized cost except for balances transferred from available for sale to held to maturity securities. Those balances reflect amortized cost plus any unrealized gains or losses at the date of transfer.

nm = not meaningful

n/a = not applicable



	Exhibit 16

Alan Gulick

Doug Lambert

Corporate Communications

Investor Relations

(425) 423-7317

(212) 782-5911