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 25, 2016

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MUFG Americas Holdings Corp Reports

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8-K - 8-K - MUFG Americas Holdings Corp	muah8kq42015.htm

Exhibit 99.1

MUFG Americas Holdings Corporation

A member of MUFG, a global financial group

FOR IMMEDIATE RELEASE (January 25, 2016)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS FULL YEAR NET INCOME OF $573 MILLION AND FOURTH QUARTER NET INCOME

OF $69 MILLION

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 2015 results. Net income for the year was $573 million, compared with net income of $816 million in 2014. Net income for the quarter was $69 million, compared with $186 million for the prior quarter and $153 million for the year-ago quarter.

Full Year Results:


◦	Net income for the year was $573 million, down $243 million, or 30%, from the prior year.


◦	The provision for credit losses was $228 million, up $222 million from the prior year primarily due to an increase in reserves within the oil and gas sector.


◦	Continued strong capital position:


▪	Capital ratios continued to exceed the regulatory thresholds for "well-capitalized" bank holding companies. Common Equity Tier 1 and Total risk-based capital ratios were 13.63% and 15.56%, respectively, at December 31, 2015.



	1

Fourth Quarter Results:


◦	Net income for the fourth quarter was $69 million, down $117 million from the third quarter of 2015.


◦	The provision for credit losses was $192 million, up from $18 million in the third quarter of 2015 primarily due to an increase in reserves within the oil and gas sector.


◦	Loans held for investment at December 31, 2015 were $77.6 billion, up $1.0 billion from September 30, 2015.


◦	Total deposits at December 31, 2015 were $84.3 billion, up $1.6 billion from September 30, 2015.


◦	In the fourth quarter, the management of MUFG Americas announced a realignment of its business model in the Americas, which includes MUAH. The realignment consolidated the customer base of the Commercial Banking operating segment, including its products and services, into the activities performed within various other segments as follows:

•Creation of a Regional Bank which provides a coordinated local delivery model in our western footprint encompassing retail and wealth, middle market commercial and real estate markets.

•Alignment of corporate clients with revenues above $500 million within our U.S. Wholesale Banking business in order to strengthen our position as a strategic advisor with deep industry coverage and product capability.

The following table presents financial highlights for the periods ended December 31, 2015, September 30, 2015 and December 31, 2014:




	As of and for the Three Months Ended						As of and for the Year Ended
(Dollars in millions)	December 31, 2015			September 30, 2015			December 31, 2015			December 31, 2014⁽¹⁾
Results of operations:
Net interest income	$	708		$	705		$	2,815		$	2,862
Noninterest income	413			397			1,530			1,123
Total revenue	1,121			1,102			4,345			3,985
Noninterest expense	891			855			3,438			2,823
Pre-tax, pre-provision income ⁽²⁾	230			247			907			1,162
Provision for credit losses	192			18			228			6
Income before income taxes and including
noncontrolling interests	38			229			679			1,156
Income tax expense	(18		)	64			151			359
Net income including noncontrolling interests	56			165			528			797
Deduct: Net loss from noncontrolling interests	13			21			45			19
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	69		$	186		$	573		$	816

Balance sheet (period average):
Total assets	$	115,914		$	113,451		$	113,859		$	109,186
Total securities	24,351			24,141			23,403			22,559
Total loans held for investment	77,832			76,177			77,016			72,406
Earning assets	104,966			102,899			103,194			98,482
Total deposits	84,033			82,488			83,186			81,988
MUAH stockholder's equity	15,722			15,435			15,369			14,808
Net interest margin ^{(4) (8)}	2.72		%	2.76		%	2.75		%	2.93		%

Balance sheet (end of period):
Total assets	$	116,206		$	115,157		$	116,206		$	113,623
Total securities	24,502			24,696			24,502			22,015
Total loans held for investment	77,599			76,641			77,599			76,804
Core deposits ⁽³⁾	76,094			74,785			76,094			76,666
Total deposits	84,340			82,693			84,340			86,004
Long-term debt	12,349			11,357			12,349			6,972
MUAH stockholder's equity	15,479			15,621			15,479			14,922

____________________________________

Refer to Exhibit 16 for footnote explanations.



	3

Summary of Full Year 2015 Results

For the full year 2015, net income was $573 million, compared with net income of $816 million in 2014. The decrease in net income was primarily due to the increase in the provision for credit losses.

Total revenue for the full year 2015 was $4.3 billion, up $360 million, or 9%, compared with 2014. Net interest income decreased $47 million, or 2%, primarily due to a decrease in purchased credit-impaired (PCI) loan interest income resulting from the diminishing size of the portfolio. Noninterest income increased $407 million, or 36%, primarily due to a full year of fee income from the business integration initiative⁽¹⁷⁾, partially offset by a decrease in merchant banking fees.

Noninterest expense increased $615 million, or 22%, largely due to increased salaries and employee benefits expenses and other costs from a full year of the business integration initiative. The effective tax rate for the full year 2015 was 22.2%, compared with an effective tax rate of 31.1% for 2014 due to lower taxable income in 2015.

Summary of Fourth Quarter Results

Fourth Quarter Total Revenue

For the fourth quarter of 2015, total revenue (net interest income plus noninterest income) was $1.1 billion, up $19 million from the third quarter of 2015.

Net interest income for the fourth quarter of 2015 was $708 million, up slightly compared with the third quarter of 2015. The net interest margin decreased four basis points to 2.72%, due in part to an overall decrease in loan yields, partially offset by higher yields on investment securities and a change in the mix of interest-bearing liabilities. Average total deposits were $84.0 billion, up $1.5 billion compared with the third quarter 2015.

For the fourth quarter of 2015, noninterest income was $413 million, up $16 million, or 4%, compared with the third quarter of 2015, largely due to increases in fees from affiliates and trading account activities, partially offset by a gain on sale of residential loans that occurred in the third quarter of 2015.

Compared with the fourth quarter of 2014, total revenue increased $60 million, substantially due to an increase in fees from affiliates and a decrease in FDIC indemnification asset amortization expense, partially offset by an increase in long-term debt interest expense and a decrease in merchant banking fees.

____________________________________

Refer to Exhibit 16 for footnote explanations.



	4

Fourth Quarter Noninterest Expense

Noninterest expense for the fourth quarter of 2015 was $891 million, up $36 million compared with the third quarter of 2015 and up $94 million from the fourth quarter of 2014. The increase from the third quarter of 2015 was due in part to professional service fees and software expenses as well as expenses associated with the realignment of the Company's business model which occurred in October 2015. The increase in noninterest expense from the fourth quarter of 2014 was largely due to higher salaries and employee benefits expense associated with employees providing support services to The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) as described below, as well as increased software and professional and outside services expenses.

The effective tax rate for the fourth quarter of 2015 was a negative 47.4%, compared with an effective tax rate of 27.9% for the third quarter of 2015. Income tax expense recorded in the fourth quarter includes an adjustment to align estimated expense with actual full year 2015 results.

Business Integration Initiative- Fourth Quarter Summary Impact⁽¹⁷⁾

For the quarters ended December 31, 2015, September 30, 2015 and December 31, 2014, the Company recorded the following fee income and costs related to support services:



	For the Three Months Ended
(Dollars in millions)	December 31, 2015		September 30, 2015		December 31, 2014

Fees from affiliates - support services	$	149	$	138	$	112

Staff costs associated with fees from
affiliates - support services	$	138	$	128	$	105

The Company also recognized fees from affiliates through revenue sharing agreements with BTMU for various business and banking services.

Balance Sheet

At December 31, 2015, total assets were $116.2 billion, up $1.0 billion from the prior quarter primarily due to an increase in net loans held for investment as a result of moderate growth in commercial and industrial loans, partially offset by a decline in residential mortgage loans.

Total deposits were $84.3 billion at December 31, 2015, up $1.6 billion compared with the prior quarter-end. Core deposits at December 31, 2015 were $76.1 billion compared with $74.8 billion at September 30, 2015. The increase was primarily due to growth within our Regional banking business.

__________________________

Refer to Exhibit 16 for footnote explanations.



	5

Credit Quality

The following table presents credit quality data for the quarters ended December 31, 2015, September 30, 2015 and December 31, 2014:




	As of and for the Three Months Ended
(Dollars in millions)	December 31, 2015			September 30, 2015			December 31, 2014

Total (reversal of) provision for credit losses	$	192		$	18		$	(1	)
Net loans charged-off (recovered)	(6		)	11			(1		)
Nonaccrual loans	552			419			375
Criticized loans held for investment ⁽¹⁵⁾	2,418			1,642			1,141

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.93		%	0.71		%	0.70		%
Nonaccrual loans	130.53			130.46			143.35
Allowance for credit losses to ⁽¹⁶⁾:
Total loans held for investment	1.14			0.90			0.90
Nonaccrual loans	160.42			164.09			183.80
Nonaccrual loans to total loans held for investment	0.71			0.55			0.49

____________________________________

Refer to Exhibit 16 for footnote explanations.

In the fourth quarter of 2015, the provision for credit losses was $192 million, compared with a provision of $18 million for the third quarter of 2015 and a reversal of provision of $1 million for the fourth quarter of 2014. The increase in the provision was substantially due to the continuing decline in commodities prices, which has resulted in negative credit migration in the oil and gas sector of our loan portfolio, primarily within petroleum exploration and production. As of December 31, 2015, our oil and gas loan portfolio was comprised of 78% petroleum exploration and production companies, of which 82% were reserve-based loans. Reserve-based lending typically consists of loans collateralized with oil and gas reserves.

The following tables provide further information about our petroleum exploration and production loan portfolio:




	As of
(Dollars in millions)	December 31, 2015		September 30, 2015		December 31, 2014
Petroleum Exploration and Production:
Loan commitments	$	5,768	$	6,147	$	6,860
Loans outstanding	2,943		3,155		3,443
Criticized commitments	2,156		838		149
Criticized outstanding	1,226		670		114
Allowance for credit losses	319		127		81



	6

Capital

The following table presents capital ratio data as of December 31, 2015 and September 30, 2015:



	December 31, 2015		September 30, 2015

Capital ratios:

Regulatory:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(9) (10)}	13.63	%	13.84	%
Tier 1 risk-based capital ratio ^{(9) (10)}	13.64		13.84
Total risk-based capital ratio ^{(9) (10)}	15.56		15.60
Tier 1 leverage ratio ^{(9) (10)}	11.40		11.58

Other:
Tangible common equity ratio ⁽¹¹⁾	10.73	%	10.95	%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) ^{(9) (14)}	13.59		13.79

____________________________________

Refer to Exhibit 16 for footnote explanations.

The Company’s stockholder’s equity was $15.5 billion at December 31, 2015, compared with $15.6 billion at September 30, 2015.

The Company's preliminary Common Equity Tier 1, Tier 1 and Total risk-based capital ratios, calculated in accordance with U.S. Basel III regulatory capital rules, were 13.63%, 13.64% and 15.56%, respectively, at December 31, 2015. The tangible common equity ratio was 10.73% at December 31, 2015.

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 13.59% at December 31, 2015.

Non-GAAP Financial Measures

This press release includes additional capital ratios (tangible common equity and Common Equity Tier 1 capital (calculated under the Basel III standardized approach on a 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 that of 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. Please refer to our separate reconciliation of non-GAAP financial measures in our financial supplement.



	7

About MUFG Americas Holdings Corporation

Headquartered in New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with total assets of $116.2 billion at December 31, 2015. 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, 2015, MUFG Union Bank, N.A. operated 369 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 leading financial groups. Visit www.unionbank.com for more information.

###



	8

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															December 31, 2015 from
(Dollars in millions)	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾			September 30, 2015		December 31, 2014
Results of operations:
Net interest income	$	708		$	705		$	719		$	683		$	709		—	%	—	%
Noninterest income	413			397			385			335			352			4		17
Total revenue	1,121			1,102			1,104			1,018			1,061			2		6
Noninterest expense	891			855			843			849			797			4		12
Pre-tax, pre-provision income ⁽²⁾	230			247			261			169			264			(7	)	(13	)
(Reversal of) provision for credit losses	192			18			15			3			(1		)	nm		nm
Income before income taxes and including
noncontrolling interests	38			229			246			166			265			(83	)	(86	)
Income tax expense	(18		)	64			71			34			117			(128	)	(115	)
Net income including noncontrolling interests	56			165			175			132			148			(66	)	(62	)
Deduct: Net loss from noncontrolling interests	13			21			6			5			5			(38	)	160
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	69		$	186		$	181		$	137		$	153		(63	)	(55	)

Balance sheet (end of period):
Total assets	$	116,206		$	115,157		$	114,266		$	113,698		$	113,623		1		2
Total securities	24,502			24,696			24,287			22,463			22,015			(1	)	11
Total loans held for investment	77,599			76,641			76,399			76,808			76,804			1		1
Core deposits ⁽³⁾	76,094			74,785			73,080			74,190			76,666			2		(1	)
Total deposits	84,340			82,693			81,702			82,741			86,004			2		(2	)
Long-term debt	12,349			11,357			8,852			8,856			6,972			9		77
MUAH stockholder's equity	15,479			15,621			15,278			15,200			14,922			(1	)	4

Balance sheet (period average):
Total assets	$	115,914		$	113,451		$	112,907		$	113,134		$	112,589		2		3
Total securities	24,351			24,141			22,915			22,172			22,171			1		10
Total loans held for investment	77,832			76,177			76,751			77,305			75,795			2		3
Earning assets	104,966			102,899			102,289			102,645			101,430			2		3
Total deposits	84,033			82,488			82,147			84,088			84,036			2		—
MUAH stockholder's equity	15,722			15,435			15,238			15,069			15,202			2		3

Performance ratios:
Return on average assets ⁽⁴⁾	0.24		%	0.66		%	0.64		%	0.49		%	0.54		%
Return on average MUAH stockholder's equity ⁽⁴⁾	1.75			4.83			4.73			3.65			4.02
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(4) (5)}	0.27			0.70			0.67			0.53			0.62
Return on average MUAH stockholder's equity excluding the
impact of privatization transaction and merger costs related to
acquisitions ^{(4) (5)}	2.24			5.82			5.69			4.51			5.23
Efficiency ratio ⁽⁶⁾	79.51			77.62			76.42			83.35			75.07
Adjusted efficiency ratio ⁽⁷⁾	69.42			70.16			69.02			74.90			67.24
Net interest margin ^{(4) (8)}	2.72			2.76			2.84			2.70			2.81

Capital ratios:

Regulatory:	U.S. Basel III												U.S. Basel I
Common Equity Tier 1 risk-based capital ratio ^{(9) (10)}	13.63		%	13.84		%	13.56		%	12.64		%	n/a
Tier 1 risk-based capital ratio ^{(9) (10)}	13.64			13.84			13.56			12.64			12.79		%
Total risk-based capital ratio ^{(9) (10)}	15.56			15.60			15.30			14.41			14.74
Tier 1 leverage ratio ^{(9) (10)}	11.40			11.58			11.46			11.30			11.25

Other:
Tangible common equity ratio ⁽¹¹⁾	10.73		%	10.95		%	10.72		%	10.69		%	10.49		%
Tier 1 common capital ratio ^{(9) (10) (12)}	n/a			n/a			n/a			n/a			12.74
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) ^{(9) (13)}	n/a			n/a			n/a			n/a			12.85
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) ^{(9) (14)}	13.59			13.79			13.49			12.57			12.56

____________________________________________

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, 2015 from
(Dollars in millions)	2015			2014 ⁽¹⁾			December 31, 2014
Results of operations:
Net interest income	$	2,815		$	2,862			(2	)%
Noninterest income	1,530			1,123				36
Total revenue	4,345			3,985				9
Noninterest expense	3,438			2,823				22
Pre-tax, pre-provision income ⁽²⁾	907			1,162				(22	)
Provision for credit losses	228			6				3,700
Income before income taxes and including
noncontrolling interests	679			1,156				(41	)
Income tax expense	151			359				(58	)
Net income including noncontrolling interests	528			797				(34	)
Deduct: Net loss from noncontrolling interests	45			19				137
Net income attributable to MUAH	$	573		$	816			(30	)

Balance sheet (end of period):
Total assets	$	116,206		$	113,623			2
Total securities	24,502			22,015				11
Total loans held for investment	77,599			76,804				1
Core deposits ⁽³⁾	76,094			76,666				(1	)
Total deposits	84,340			86,004				(2	)
Long-term debt	12,349			6,972				77
MUAH stockholder's equity	15,479			14,922				4

Balance sheet (period average):
Total assets	$	113,859		$	109,186			4
Total securities	23,403			22,559				4
Total loans held for investment	77,016			72,406				6
Earning assets	103,194			98,482				5
Total deposits	83,186			81,988				1
MUAH stockholder's equity	15,369			14,808				4

Performance ratios:
Return on average assets ⁽⁴⁾	0.50		%	0.75		%
Return on average MUAH stockholder's equity ⁽⁴⁾	3.73			5.51
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}	0.54			0.80
Return on average MUAH stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(4) (5)}	4.55			6.77
Efficiency ratio ⁽⁶⁾	79.15			70.84
Adjusted efficiency ratio ⁽⁷⁾	70.92			64.63
Net interest margin ^{(4) (8)}	2.75			2.93

___________________________________________

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, 2015 from
(Dollars in millions)	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2015		December 31, 2014

Credit Data:
(Reversal of) provision for loan losses	$	168		$	23		$	26		$	(3	)	$	9		nm		nm
(Reversal of) provision for losses on unfunded credit commitments	24			(5		)	(11		)	6			(10		)	318		26
Total (reversal of) provision for credit losses	$	192		$	18		$	15		$	3		$	(1	)	nm		nm

Net loans charged-off (recovered)	$	(6	)	$	11		$	20		$	3		$	(1	)	(130	)	(150	)
Nonperforming assets	573			434			381			390			411			50		34
Criticized loans held for investment ⁽¹⁵⁾	2,418			1,642			1,395			1,327			1,141			73		94

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.93		%	0.71		%	0.70		%	0.69		%	0.70		%
Nonaccrual loans	130.53			130.46			147.98			147.21			143.35
Allowance for credit losses to ⁽¹⁶⁾:
Total loans held for investment	1.14			0.90			0.89			0.90			0.90
Nonaccrual loans	160.42			164.09			188.39			191.20			183.80
Net loans charged-off (recovered) to average total loans held for investment ⁽⁴⁾	(0.03		)	0.06			0.10			0.01			—
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.74			0.57			0.50			0.51			0.53
Nonperforming assets to total assets	0.49			0.38			0.33			0.34			0.36
Nonaccrual loans to total loans held for investment	0.71			0.55			0.47			0.47			0.49


	As of and for the Year Ended						Percent Change
	December 31,			December 31,			to December 31, 2015
(Dollars in millions)	2015			2014			from December 31, 2014
Credit Data:
(Reversal of) provision for loan losses	$	214		$	(16	)	nm
(Reversal of) provision for losses on unfunded credit commitments	14			22			(36)%
Total provision for credit losses	$	228		$	6		nm

Net loans charged-off	$	28		$	12		133
Credit Ratios:
Net loans charged-off to average total loans held for investment	0.04		%	0.02		%

nm = not meaningful

________________________________________

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, 2015			September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014(1)
Interest Income
	Loans		$	693		$	688	$	700	$	678	$	696
	Securities		124			116		121		102		109
	Other		4			5		2		3		3
		Total interest income	821			809		823		783		808

Interest Expense
	Deposits		50			48		50		52		57
	Commercial paper and other short-term borrowings		1			3		2		1		1
	Long-term debt		62			53		52		47		41
		Total interest expense	113			104		104		100		99

Net Interest Income			708			705		719		683		709
	(Reversal of) provision for credit losses		192			18		15		3		(1		)
		Net interest income after (reversal of) provision for credit losses	516			687		704		680		710

Noninterest Income
	Service charges on deposit accounts		49			49		49		49		50
	Trust and investment management fees		28			27		26		28		26
	Trading account activities		21			7		19		8		8
	Securities gains, net		6			6		5		3		2
	Credit facility fees		28			27		30		30		33
	Merchant banking fees		17			22		20		20		35
	Brokerage commissions and fees		14			13		14		13		13
	Card processing fees, net		8			8		9		8		9
	Fees from affiliates ⁽¹⁷⁾		204			185		192		166		168
	Other, net		38			53		21		10		8
		Total noninterest income	413			397		385		335		352

Noninterest Expense
	Salaries and employee benefits		569			557		555		567		527
	Net occupancy and equipment		83			79		75		80		76
	Professional and outside services		82			78		64		77		72
	Software		34			28		29		28		26
	Regulatory assessments		13			11		14		13		13
	Intangible asset amortization		10			10		10		10		13
	Other		100			92		96		74		70
		Total noninterest expense	891			855		843		849		797

	Income before income taxes and including
	noncontrolling interests		38			229		246		166		265
	Income tax expense		(18		)	64		71		34		117
Net Income including Noncontrolling Interests			56			165		175		132		148
	Deduct: Net loss from noncontrolling interests		13			21		6		5		5
Net Income attributable to MUAH			$	69		$	186	$	181	$	137	$	153

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 4

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Year Ended
(Dollars in millions)			December 31, 2015		December 31, 2014⁽¹⁾
Interest Income
	Loans		$	2,759	$	2,805
	Securities		463		452
	Other		14		13
		Total interest income	3,236		3,270

Interest Expense
	Deposits		200		238
	Commercial paper and other short-term borrowings		7		5
	Long-term debt		214		165
		Total interest expense	421		408

Net Interest Income			2,815		2,862
	Provision for credit losses		228		6
		Net interest income after provision for credit losses	2,587		2,856

Noninterest Income
	Service charges on deposit accounts		196		203
	Trust and investment management fees		109		104
	Trading account activities		55		71
	Securities gains, net		20		18
	Credit facility fees		115		122
	Merchant banking fees		79		124
	Brokerage commissions and fees		54		53
	Card processing fees, net		33		34
	Fees from affiliates ⁽¹⁷⁾		747		319
	Other, net		122		75
		Total noninterest income	1,530		1,123

Noninterest Expense
	Salaries and employee benefits		2,248		1,785
	Net occupancy and equipment		317		296
	Professional and outside services		301		256
	Software		119		94
	Regulatory assessments		51		57
	Intangible asset amortization		40		52
	Other		362		283
		Total noninterest expense	3,438		2,823

	Income before income taxes and including
	noncontrolling interests		679		1,156
	Income tax expense		151		359
Net Income including Noncontrolling Interests			528		797
	Deduct: Net loss from noncontrolling interests		45		19
Net Income attributable to MUAH			$	573	$	816

___________________________________________

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, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014⁽¹⁾
Assets
Cash and due from banks				$	1,756		$	1,596		$	1,815		$	1,735		$	1,759
Interest bearing deposits in banks				2,749			2,692			2,160			2,787			3,930
Federal funds sold and securities purchased under resale agreements				24			86			68			92			62
		Total cash and cash equivalents		4,529			4,374			4,043			4,614			5,751
Trading account assets				1,087			1,200			1,089			1,233			1,114
Securities available for sale				14,344			14,355			14,285			13,338			13,724
Securities held to maturity				10,158			10,341			10,002			9,125			8,291
Loans held for investment				77,599			76,641			76,399			76,808			76,804
	Allowance for loan losses			(721		)	(547		)	(536		)	(530		)	(537		)
		Loans held for investment, net		76,878			76,094			75,863			76,278			76,267
Premises and equipment, net				608			607			622			623			621
Goodwill				3,225			3,225			3,225			3,225			3,225
Other assets				5,377			4,961			5,137			5,262			4,630
			Total assets	$	116,206		$	115,157		$	114,266		$	113,698		$	113,623

Liabilities
Deposits:
	Noninterest bearing			$	32,463		$	31,869		$	30,156		$	29,854		$	30,534
	Interest bearing			51,877			50,824			51,546			52,887			55,470
		Total deposits		84,340			82,693			81,702			82,741			86,004
Commercial paper and other short-term borrowings				1,038			2,338			5,262			3,475			2,704
Long-term debt				12,349			11,357			8,852			8,856			6,972
Trading account liabilities				796			891			734			944			894
Other liabilities				2,023			2,060			2,232			2,266			1,897
			Total liabilities	100,546			99,339			98,782			98,282			98,471

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, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014		136			136			136			136			136
	Additional paid-in capital			7,241			7,224			7,208			7,241			7,232
	Retained earnings			8,854			8,786			8,600			8,420			8,283
	Accumulated other comprehensive loss			(752		)	(525		)	(666		)	(597		)	(729		)
			Total MUAH stockholder's equity	15,479			15,621			15,278			15,200			14,922
Noncontrolling interests				181			197			206			216			230
			Total equity	15,660			15,818			15,484			15,416			15,152
			Total liabilities and equity	$	116,206		$	115,157		$	114,266		$	113,698		$	113,623

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	December 31, 2015								September 30, 2015
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾			Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾
Assets
Loans held for investment: ⁽¹⁸⁾
Commercial and industrial	$	29,720		$	255	3.40		%	$	28,262		$	239	3.35	%
Commercial mortgage	13,997			115		3.29			13,745			116		3.38
Construction	2,210			17		2.99			2,103			16		3.07
Lease financing	748			10		5.56			755			11		5.45
Residential mortgage	27,622			234		3.39			27,783			237		3.42
Home equity and other consumer loans	3,171			37		4.57			3,117			35		4.43
Loans, before purchased credit-impaired loans	77,468			668		3.43			75,765			654		3.44
Purchased credit-impaired loans	364			27		30.30			412			36		34.49
Total loans held for investment	77,832			695		3.56			76,177			690		3.61
Securities	24,351			129		2.12			24,141			121		2.00
Interest bearing deposits in banks	2,455			2		0.28			1,963			1		0.25
Federal funds sold and securities purchased under resale agreements	85			—		(0.08	)		63			—		0.01
Trading account assets	157			—		0.58			173			—		0.69
Other earning assets	86			2		5.02			382			4		4.08
Total earning assets	104,966			828		3.14			102,899			816		3.16
Allowance for loan losses	(552		)						(539		)
Cash and due from banks	1,805								1,588
Premises and equipment, net	601								611
Other assets ⁽¹⁹⁾	9,094								8,892
Total assets	$	115,914							$	113,451
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	38,154		27		0.28			$	37,537		28		0.29
Savings	5,670			1		0.06			5,687			—		0.06
Time	7,671			22		1.14			8,058			20		1.01
Total interest bearing deposits	51,495			50		0.39			51,282			48		0.38
Commercial paper and other short-term borrowings ⁽²⁰⁾	1,290			1		0.28			3,630			3		0.22
Long-term debt	12,063			62		2.04			9,319			53		2.29
Total borrowed funds	13,353			63		1.87			12,949			56		1.71
Total interest bearing liabilities	64,848			113		0.69			64,231			104		0.65
Noninterest bearing deposits	32,538								31,206
Other liabilities ⁽²¹⁾	2,613								2,375
Total liabilities	99,999								97,812
Equity
MUAH stockholder's equity	15,722								15,435
Noncontrolling interests	193								204
Total equity	15,915								15,639
Total liabilities and equity	$	115,914							$	113,451

Net interest income/spread (taxable-equivalent basis)				715		2.45		%				712		2.51	%
Impact of noninterest bearing deposits						0.23								0.22
Impact of other noninterest bearing sources						0.04								0.03
Net interest margin						2.72								2.76
Less: taxable-equivalent adjustment				7								7
Net interest income				$	708							$	705

____________________________________________

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, 2015								December 31, 2014
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾			Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾
Assets
Loans held for investment: ⁽¹⁸⁾
Commercial and industrial	$	29,720		$	255	3.40		%	$	27,138		$	228	3.33	%
Commercial mortgage	13,997			115		3.29			13,833			117		3.39
Construction	2,210			17		2.99			1,557			12		3.00
Lease financing	748			10		5.56			810			10		4.97
Residential mortgage	27,622			234		3.39			28,738			253		3.52
Home equity and other consumer loans	3,171			37		4.57			3,137			33		4.20
Loans, before purchased credit-impaired loans	77,468			668		3.43			75,213			653		3.46
Purchased credit-impaired loans	364			27		30.30			582			44		30.08
Total loans held for investment	77,832			695		3.56			75,795			697		3.67
Securities	24,351			129		2.12			22,171			113		2.04
Interest bearing deposits in banks	2,455			2		0.28			2,788			2		0.26
Federal funds sold and securities purchased under resale agreements	85			—		(0.08	)		149			—		0.05
Trading account assets	157			—		0.58			196			—		0.72
Other earning assets	86			2		5.02			331			1		0.68
Total earning assets	104,966			828		3.14			101,430			813		3.20
Allowance for loan losses	(552		)						(533		)
Cash and due from banks	1,805								1,727
Premises and equipment, net	601								614
Other assets ⁽¹⁹⁾	9,094								9,351
Total assets	$	115,914							$	112,589
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	38,154		27		0.28			$	39,762		33		0.33
Savings	5,670			1		0.06			5,555			1		0.08
Time	7,671			22		1.14			9,133			23		0.97
Total interest bearing deposits	51,495			50		0.39			54,450			57		0.41
Commercial paper and other short-term borrowings ⁽²⁰⁾	1,290			1		0.28			3,257			1		0.19
Long-term debt	12,063			62		2.04			6,983			41		2.36
Total borrowed funds	13,353			63		1.87			10,240			42		1.67
Total interest bearing liabilities	64,848			113		0.69			64,690			99		0.61
Noninterest bearing deposits	32,538								29,586
Other liabilities ⁽²¹⁾	2,613								2,873
Total liabilities	99,999								97,149
Equity
MUAH stockholder's equity	15,722								15,202
Noncontrolling interests	193								238
Total equity	15,915								15,440
Total liabilities and equity	$	115,914							$	112,589

Net interest income/spread (taxable-equivalent basis)				715		2.45		%				714		2.59	%
Impact of noninterest bearing deposits						0.23								0.19
Impact of other noninterest bearing sources						0.04								0.03
Net interest margin						2.72								2.81
Less: taxable-equivalent adjustment				7								5
Net interest income				$	708							$	709

____________________________________________

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, 2015								December 31, 2014
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾			Balance			Expense ⁽⁸⁾		Rate ⁽⁴⁾⁽⁸⁾
Assets
Loans held for investment: ⁽¹⁸⁾
Commercial and industrial	$	28,624		$	955	3.34		%	$	25,321		$	848	3.35	%
Commercial mortgage	13,876			462		3.33			13,560			482		3.56
Construction	2,054			62		3.01			1,256			40		3.20
Lease financing	762			41		5.38			827			47		5.71
Residential mortgage	28,138			957		3.40			27,449			988		3.60
Home equity and other consumer loans	3,122			137		4.38			3,181			129		4.08
Loans, before purchased credit-impaired loans	76,576			2,614		3.41			71,594			2,534		3.54
Purchased credit-impaired loans	440			151		34.46			812			273		33.54
Total loans held for investment	77,016			2,765		3.59			72,406			2,807		3.88
Securities	23,403			482		2.06			22,559			470		2.09
Interest bearing deposits in banks	2,365			6		0.26			2,898			8		0.25
Federal funds sold and securities purchased under resale agreements	78			—		(0.18	)		122			—		0.06
Trading account assets	180			1		0.67			205			3		1.54
Other earning assets	152			7		4.17			292			3		0.87
Total earning assets	103,194			3,261		3.16			98,482			3,291		3.34
Allowance for loan losses	(542		)						(559		)
Cash and due from banks	1,661								1,566
Premises and equipment, net	612								632
Other assets ⁽¹⁹⁾	8,934								9,065
Total assets	$	113,859							$	109,186
Liabilities
Interest bearing deposits:
Transaction and money market accounts	38,341			114		0.30			38,517			137		0.36
Savings	5,624			3		0.06			5,573			5		0.09
Time	8,305			83		1.00			10,211			96		0.94
Total interest bearing deposits	52,270			200		0.38			54,301			238		0.44
Commercial paper and other short-term borrowings ⁽²⁰⁾	2,932			7		0.22			2,809			5		0.19
Long-term debt	9,572			214		2.23			6,863			165		2.40
Total borrowed funds	12,504			221		1.76			9,672			170		1.76
Total interest bearing liabilities	64,774			421		0.65			63,973			408		0.64
Noninterest bearing deposits	30,916								27,687
Other liabilities ⁽²¹⁾	2,590								2,472
Total liabilities	98,280								94,132
Equity
MUAH stockholder's equity	15,369								14,808
Noncontrolling interests	210								246
Total equity	15,579								15,054
Total liabilities and equity	$	113,859							$	109,186

Net interest income/spread (taxable-equivalent basis)				2,840		2.51		%				2,883		2.70	%
Impact of noninterest bearing deposits						0.21								0.19
Impact of other noninterest bearing sources						0.03								0.04
Net interest margin						2.75								2.93
Less: taxable-equivalent adjustment				25								21
Net interest income				$	2,815							$	2,862

____________________________________________

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, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	29,730	$	28,462	$	27,854	$	27,979	$	27,623
		Commercial mortgage			13,904		13,943		13,800		13,923		14,016
		Construction			2,297		2,120		2,071		1,996		1,746
		Lease financing			737		748		759		776		800
			Total commercial portfolio		46,668		45,273		44,484		44,674		44,185

		Residential mortgage			27,344		27,856		28,374		28,558		28,977
		Home equity and other consumer loans			3,251		3,124		3,098		3,081		3,117
			Total consumer portfolio		30,595		30,980		31,472		31,639		32,094
				Loans held for investment, before purchased credit-impaired loans	77,263		76,253		75,956		76,313		76,279
		Purchased credit-impaired loans			336		388		443		495		525

				Total loans held for investment	$	77,599	$	76,641	$	76,399	$	76,808	$	76,804

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	284	$	138	$	64	$	52	$	55
		Commercial mortgage			37		40		43		40		40
			Total commercial portfolio		321		178		107		92		95

		Residential mortgage			190		201		209		221		231
		Home equity and other consumer loans			35		32		36		39		40
			Total consumer portfolio		225		233		245		260		271

				Nonaccrual loans, before purchased credit-impaired loans	546		411		352		352		366
		Purchased credit-impaired loans			6		8		10		9		9
				Total nonaccrual loans	552		419		362		361		375

	OREO				21		15		19		29		36

				Total nonperforming assets	$	573	$	434	$	381	$	390	$	411

	Loans 90 days or more past due and still accruing ⁽²²⁾				$	2	$	4	$	2	$	4	$	3

__________________________________________

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, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014

Analysis of Allowance for Credit Losses
Allowance for loan losses, beginning of period	$	547		$	536		$	530		$	537		$	529
(Reversal of) provision for loan losses	168			23			26			(3		)	9
Other	—			(1		)	—			(1		)	(2		)
Loans charged-off:
Commercial and industrial	—			(11		)	(12		)	(1		)	(8		)
Commercial mortgage	—			—			(1		)	(3		)	(1		)
Total commercial portfolio	—			(11		)	(13		)	(4		)	(9		)
Residential mortgage	—			—			—			(1		)	—
Home equity and other consumer loans	(1		)	(1		)	(3		)	(2		)	(2		)
Total consumer portfolio	(1		)	(1		)	(3		)	(3		)	(2		)
Purchased credit-impaired loans	(1		)	(3		)	(8		)	—			—
Total loans charged-off	(2		)	(15		)	(24		)	(7		)	(11		)
Recoveries of loans previously charged-off:
Commercial and industrial	7			2			3			4			10
Commercial mortgage	—			1			—			—			—
Total commercial portfolio	7			3			3			4			10
Home equity and other consumer loans	—			1			1			—			2
Total consumer portfolio	—			1			1			—			2
Purchased credit-impaired loans	1			—			—			—			—
Total recoveries of loans previously charged-off	8			4			4			4			12
Net loans recovered (charged-off)	6			(11		)	(20		)	(3		)	1

Ending balance of allowance for loan losses	721			547			536			530			537
Allowance for losses on unfunded credit commitments	165			141			147			158			152
Total allowance for credit losses	$	886		$	688		$	683		$	688		$	689



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			December 31, 2015				September 30, 2015				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		September 30, 2015			September 30, 2015
Asset Liability Management securities:
U.S. Treasury			$	596	$	594	$	—	$	—	$	594		nm
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		7,298		7,201		7,879		7,860		(659		)	(8	)
	Privately issued		150		151		131		132		19			14
Privately issued - commercial mortgage-backed securities			1,566		1,546		1,586		1,595		(49		)	(3	)
Collateralized loan obligations			3,266		3,233		3,132		3,109		124			4
Asset-backed and other			7		7		7		8		(1		)	(13	)
		Asset Liability Management securities	12,883		12,732		12,735		12,704		28			—
Other debt securities:
Direct bank purchase bonds			1,549		1,572		1,567		1,594		(22		)	(1	)
Other			32		32		48		49		(17		)	(35	)
Equity securities			6		8		6		8		—			—
		Total securities available for sale	$	14,470	$	14,344	$	14,356	$	14,355	$	(11	)	—	%

Securities Held to Maturity

			December 31, 2015				September 30, 2015				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²³⁾		Value		Amount ⁽²³⁾		Value		September 30, 2015			September 30, 2015
U.S. Treasury			$	489	$	493	$	488	$	499	$	1		—	%
U.S. government-sponsored agencies			220		216		900		901		(680		)	(76	)
U.S. government agency and government-
	sponsored agencies - residential mortgage-backed securities		7,782		7,790		7,270		7,375		512			7
U.S. government agency and government-
	sponsored agencies - commercial mortgage-backed securities		1,667		1,708		1,683		1,753		(16		)	(1	)
		Total securities held to maturity	$	10,158	$	10,207	$	10,341	$	10,528	$	(183	)	(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, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾
Net income attributable to MUAH		$	69		$	186		$	181		$	137		$	153
Net adjustments for merger costs related to acquisitions, net of tax		4			5			3			6			12
Net adjustments for privatization transaction, net of tax		4			3			3			3			6
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	77		$	194		$	187		$	146		$	171

Average total assets		$	115,914		$	113,451		$	112,907		$	113,134		$	112,589
Less: Net adjustments related to privatization transaction		2,218			2,224			2,230			2,235			2,244
Average total assets, excluding impact of privatization transaction		$	113,696		$	111,227		$	110,677		$	110,899		$	110,345
Return on average assets ⁽⁴⁾		0.24		%	0.66		%	0.64		%	0.49		%	0.54		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(4) (5)}	0.27			0.70			0.67			0.53			0.62

Average MUAH stockholder's equity		$	15,722		$	15,435		$	15,238		$	15,069		$	15,202
Less: Adjustments for merger costs related to acquisitions		(179		)	(175		)	(171		)	(167		)	(157		)
Less: Net adjustments for privatization transaction		2,273			2,273			2,275			2,276			2,279
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,628		$	13,337		$	13,134		$	12,960		$	13,080
Return on average MUAH stockholder's equity ⁽⁴⁾		1.75		%	4.83		%	4.73		%	3.65		%	4.02		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(4) (5)}	2.24			5.82			5.69			4.51			5.23

Noninterest expense		$	891		$	855		$	843		$	849		$	797
Less: Staff costs associated with fees from affiliates - support services		138			128			123			112			105
Less: Foreclosed asset expense and other credit costs		—			3			—			1			(2		)
Less: Productivity initiative costs		41			3			2			28			2
Less: Low income housing credit (LIHC) investment amortization expense		6			5			2			2			4
Less: Expenses of the LIHC consolidated VIEs		13			14			10			9			8
Less: Merger and business integration costs		6			8			6			9			20
Less: Net adjustments related to privatization transaction		8			8			7			8			10
Less: Intangible asset amortization		3			2			3			3			3
Less: Contract termination fee		—			—			23			—			—
	Noninterest expense, as adjusted (a)	$	676		$	684		$	667		$	677		$	647

Total revenue		$	1,121		$	1,102		$	1,104		$	1,018		$	1,061
Add: Net interest income taxable-equivalent adjustment		7			7			6			5			5
Less: Fees from affiliates - support services		149			138			134			121			112
Less: Productivity initiative gains		—			—			(1		)	1			(1		)
Less: Accretion related to privatization-related fair value adjustments		2			3			2			1			(1		)
Less: Other credit costs		4			(8		)	8			(4		)	(6		)
	Total revenue, as adjusted (b)	$	973		$	976		$	967		$	904		$	962
Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		69.42		%	70.16		%	69.02		%	74.90		%	67.24		%

____________________________________________

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, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014 ⁽¹⁾
Total MUAH stockholder's equity		$	15,479		$	15,621		$	15,278		$	15,200		$	14,922
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except mortgage servicing rights (MSRs)		190			199			214			222			233
Less: Deferred tax liabilities related to goodwill and intangible assets		(39		)	(39		)	(41		)	(40		)	(99		)
	Tangible common equity (c)	$	12,103		$	12,236		$	11,880		$	11,793		$	11,563
Total assets		$	116,206		$	115,157		$	114,266		$	113,698		$	113,623
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		190			199			214			222			233
Less: Deferred tax liabilities related to goodwill and intangible assets		(39		)	(39		)	(41		)	(40		)	(99		)
	Tangible assets (d)	$	112,830		$	111,772		$	110,868		$	110,291		$	110,264
Tangible common equity ratio (c)/(d) ⁽¹¹⁾		10.73		%	10.95		%	10.72		%	10.69		%	10.49		%

Tier 1 capital, determined in accordance with U.S. Basel I regulatory requirements		n/a			n/a			n/a			n/a			$	12,367
Less: Junior subordinated debt payable to trusts		n/a			n/a			n/a			n/a			51
	U.S. Basel I Tier 1 common capital (e)	n/a			n/a			n/a			n/a			$	12,316
Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (f)		$	12,920		$	12,834		$	12,632		$	12,480		$	12,450
Other		(61		)	(67		)	(74		)	(80		)	(117		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (g)	$	12,859		$	12,767		$	12,558		$	12,400		$	12,333
Risk-weighted assets, determined in accordance with U.S. Basel I regulatory requirements (h)		n/a			n/a			n/a			n/a			$	96,663
Add: Adjustments		n/a			n/a			n/a			n/a			205
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (i)		$	94,775		$	92,729		$	93,179		98,723			$	96,868
Add: Adjustments		(153		)	(160		)	(67		)	(74		)	1,301
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased in) (j)	$	94,622		$	92,569		$	93,112		$	98,649		$	98,169
Tier 1 common capital ratio (e)/(h) ^{(9) (10) (12)}		n/a			n/a			n/a			n/a			12.74		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized; transitional) (f)/(i) ^{(9) (13)}		n/a			n/a			n/a			n/a			12.85
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased in) (g)/(j) ^{(9) (14)}		13.59		%	13.79		%	13.49		%	12.57		%	12.56

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 14

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		As of and for the Year Ended
		December 31,			December 31,
(Dollars in millions)		2015			2014 ⁽¹⁾

Net income attributable to MUAH		$	573		$	816
Net adjustments for merger costs related to acquisitions, net of tax		17			51
Net adjustments for privatization transaction, net of tax		13			(10		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	603		$	857

Average total assets		$	113,859		$	109,186
Less: Net adjustments related to privatization transaction		2,227			2,258
Average total assets, excluding impact of privatization transaction		$	111,632		$	106,928
Return on average assets ⁽⁴⁾		0.50		%	0.75		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions ^{(4) (5)}	0.54			0.80

Average MUAH stockholder's equity		$	15,369		$	14,808
Less: Adjustments for merger costs related to acquisitions		(173		)	(139		)
Less: Net adjustments for privatization transaction		2,274			2,292
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,268		$	12,655
Return on average MUAH stockholder's equity ⁽⁴⁾		3.73		%	5.51		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions ^{(4) (5)}	4.55			6.77

Noninterest expense		$	3,438		$	2,823
Less: Staff costs associated with fees from affiliates - support services		507			193
Less: Foreclosed asset expense and other credit costs		(4		)	(2		)
Less: Productivity initiative costs		74			13
Less: Low income housing credit (LIHC) investment amortization expense		15			13
Less: Expenses of the LIHC consolidated VIEs		46			32
Less: Merger and business integration costs		29			84
Less: Net adjustments related to privatization transaction		30			41
Less: Intangible asset amortization		12			12
Less: Contract termination fee		23			—
	Noninterest expense, as adjusted (a)	$	2,706		$	2,437

Total revenue		$	4,345		$	3,985
Add: Net interest income taxable-equivalent adjustment		25			21
Less: Fees from affiliates - support services		546			206
Less: Productivity initiative gains		—			(1		)
Less: Accretion related to privatization-related fair value adjustments		8			18
Less: Other credit costs		—			11
	Total revenue, as adjusted (b)	$	3,816		$	3,772
Adjusted efficiency ratio (a)/(b) ⁽⁷⁾		70.92		%	64.63		%

____________________________________________

Refer to Exhibit 16 for footnote explanations.



	Exhibit 15

MUFG Americas Holdings Corporation and Subsidiaries

Footnotes


(1)	Prior period amounts have been revised to reflect the January 1, 2015 adoption of Accounting Standards Update 2014-01 related to investments in qualified affordable housing projects.


(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 credit 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 the Company's business results. Please refer to Exhibits 13 and 15 for reconciliations 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 staff costs associated with fees from affiliates - support services, foreclosed asset expense and other credit costs, certain costs related to productivity initiatives, LIHC investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger and business integration costs, privatization-related expenses, intangible asset amortization, and a contract termination fee) 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, productivity initiatives related to the sale of certain 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.


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


(9)	Preliminary as of December 31, 2015.


(10)	The capital ratios as of December 31, 2014 are calculated under U.S. Basel I rules. The capital ratios displayed as of December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015 are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' final U.S. Basel III regulatory capital rules.

(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)

The Tier 1 common capital ratio, calculated under Basel I rules, 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 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.

(13)

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' 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. Please refer to Exhibit 14 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(14)

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 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.


(15)	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.


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


(17)	Fees from affiliates represent income resulting from the business integration initiative effective July 1, 2014, whereby BTMU integrated its U.S. branch banking operations, including its employees, under the Bank's operations. The Bank and BTMU participate in a master services agreement whereby the Bank provides BTMU with support services in exchange for fee income.


(18)	Average balances on loans held for investment include all nonaccrual loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.


(19)	Includes noninterest bearing trading assets.


(20)	Includes interest bearing trading liabilities.


(21)	Includes noninterest bearing trading liabilities.

(22)

Excludes loans totaling $16 million, $30 million, $36 million, $52 million, and $65 million that are 90 days or more past due and still accruing at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, 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.


(23)	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