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 24, 2017

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MUFG Americas Holdings Corp Reports

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8-K - 8-K - MUFG Americas Holdings Corp	muah8kq42016.htm

Exhibit 99.1

MUFG Americas Holdings Corporation

A member of MUFG, a global financial group

FOR IMMEDIATE RELEASE (January 24, 2017)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS FOURTH QUARTER NET INCOME OF $334 MILLION AND FULL YEAR NET INCOME OF $990 MILLION

NEW YORK - MUFG Americas Holdings Corporation (the Company), parent company of San Francisco-based MUFG Union Bank, N.A. (the Bank), today reported net income for the fourth quarter and full year 2016 of $334 million and $990 million, compared with $260 million for the prior quarter, $84 million for the year-ago quarter, and $644 million for full year 2015.

Fourth Quarter Results:


◦	Net income for the fourth quarter was $334 million, up $74 million from the third quarter of 2016.


◦	The provision (reversal) for credit losses was $(41) million compared with $73 million in the third quarter of 2016. The current quarter reversal was due primarily to refinements made to the loss factors within the commercial portfolio.


◦	Total revenue was $1.4 billion, up $75 million from the preceding quarter, reflecting expansion of the net interest margin and a gain from the sale of the Bank's legacy principal branch and administrative office.


◦	Average loans held for investment during the fourth quarter of 2016 were $78.6 billion, down $1.9 billion from the third quarter of 2016.


◦	Average deposits during the fourth quarter of 2016 were $86.7 billion, up $2.5 billion from the third quarter of 2016.



	1

The following table presents financial highlights for the periods ended December 31, 2016, September 30, 2016 and December 31, 2015:



										Percent Change to
	As of and for the Three Months Ended									December 31, 2016 from
(Dollars in millions)	December 31, 2016			September 30, 2016			December 31, 2015			September 30, 2016		December 31, 2015
Results of operations:
Net interest income	$	802		$	773		$	730		4	%	10	%
Noninterest income	616			570			482			8		28
Total revenue	1,418			1,343			1,212			6		17
Noninterest expense	956			952			963			—		(1	)
Pre-tax, pre-provision income ⁽¹⁾	462			391			249			18		86
(Reversal of) provision for credit losses	(41		)	73			192			(156	)	(121	)
Income before income taxes and including
noncontrolling interests	503			318			57			58		nm
Income tax expense	175			97			(14		)	80		nm
Net income including noncontrolling interests	328			221			71			48		362
Deduct: Net loss from noncontrolling interests	6			39			13			(85	)	(54	)
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	334		$	260		$	84		28		298

Balance sheet (end of period):
Total assets	$	148,144		$	151,099		$	153,070		(2	)	(3	)
Total securities	24,478			24,116			24,517			2		—
Securities borrowed or purchased under resale agreements	19,747			21,906			31,072			(10	)	(36	)
Total loans held for investment	77,551			79,249			79,257			(2	)	(2	)
Core deposits ⁽²⁾	80,482			77,392			76,054			4		6
Total deposits	86,947			84,643			84,300			3		3
Securities loaned or sold under repurchase agreements	24,616			25,582			29,141			(4	)	(16	)
Long-term debt	11,410			11,427			13,648			—		(16	)
MUAH stockholders' equity	17,233			17,353			16,378			(1	)	5

Balance sheet (period average):
Total assets	$	150,799		$	149,056		$	154,470		1		(2	)
Total securities	24,105			23,503			24,366			3		(1	)
Securities borrowed or purchased under resale agreements	21,859			20,668			32,341			6		(32	)
Total loans held for investment	78,615			80,469			79,501			(2	)	(1	)
Earning assets	137,964			136,051			142,179			1		(3	)
Total deposits	86,700			84,194			83,996			3		3
Securities loaned or sold under repurchase agreements	26,147			23,872			30,366			10		(14	)
MUAH stockholders' equity	17,367			17,311			16,639			—		4
Net interest margin ^{(3) (7)}	2.35		%	2.29		%	2.07		%
Net interest margin excluding MUSA ⁽⁸⁾	2.78		%	2.72		%	2.68		%

____________________________________

Refer to Exhibit 19 for footnote explanations.



	2

Fourth Quarter Results

Fourth Quarter Total Revenue

For the fourth quarter of 2016, total revenue (net interest income plus noninterest income) was $1.4 billion, up $75 million from the third quarter of 2016. Net interest income for the fourth quarter of 2016 was $802 million, up $29 million compared with the third quarter of 2016, primarily fueled by expansion of the net interest margin, which increased 6 basis points to 2.35%, and growth in securities and trading assets. Excluding MUSA for all periods, the net interest margin was 2.78% in the fourth quarter of 2016, up 6 basis points compared with the third quarter of 2016.

For the fourth quarter of 2016, noninterest income was $616 million, up $46 million compared with the preceding quarter, largely due to the gain on sale of the Bank's legacy principal branch and administrative office and an increase in fees from affiliates, partially offset by a decrease in investment banking and syndication fees.

Compared with the fourth quarter of 2015, total revenue increased $206 million, primarily due to an increase in net interest income, driven by an increase in the net interest margin, partially offset by a decrease in earning assets, the gain on sale of the Bank's legacy principal branch and administrative office in the fourth quarter of 2016, and an increase in fees from affiliates.

Fourth Quarter Noninterest Expense

Noninterest expense for the fourth quarter of 2016 was $956 million, up $4 million compared with the third quarter of 2016 and down $7 million from the fourth quarter of 2015. The increase from the third quarter was driven by an increase in professional and outside services expense. The increase in noninterest expense was largely offset by a low income housing impairment charge recorded in the preceding quarter. Compared with the fourth quarter of 2015, the decrease in noninterest expense was largely due to a decrease in pension expense, partially offset by an increase in professional and outside services expense.

The effective tax rate for the fourth quarter of 2016 was 34.8%, up from 30.5% for the third quarter of 2016, due to discrete tax adjustments recorded in the fourth quarter and an adjustment to align estimated income tax expense with actual full year 2016 results.



	3

Business Integration Initiative - Fourth Quarter Summary Impact

For the quarters ended December 31, 2016, September 30, 2016 and December 31, 2015, the Company recorded the following fee income and costs related to support services:



	For the Three Months Ended
(Dollars in millions)	December 31, 2016		September 30, 2016		December 31, 2015

Fees from affiliates - support services ⁽¹⁶⁾	$	175	$	150	$	149

Staff costs associated with fees from
affiliates - support services ⁽¹⁶⁾	$	162	$	139	$	138

__________________________

Refer to Exhibit 19 for footnote explanations.

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

Full Year 2016 Results

For the full year 2016, net income was $990 million, compared with net income of $644 million in 2015. The increase in net income was primarily due to growth in total revenue (net interest income plus noninterest income).

Total revenue for the full year 2016 was $5.3 billion, up $536 million, or 11%, compared with 2015. Net interest income increased $161 million, or 6%, due to expansion of the net interest margin, partially offset by a decrease in earning assets. The net interest margin increased 15 basis points to 2.23% due mainly to an increase in yields on commercial and industrial loans, securities borrowed or purchased under resale agreements, and trading assets. Excluding MUSA for both years, the net interest margin was 2.72% in 2016 and 2.71% in 2015. Noninterest income increased $375 million, or 20%, primarily due to an increase in fees from affiliates.

Noninterest expense increased $35 million, or 1%, largely due to increases in professional and outside services and software expenses, partially offset by a decrease in pension expense. The effective tax rate for the full year 2016 was 31.2%, compared with an effective tax rate of 22.0% for 2015 due to federal income tax credits recognized in 2015.

Balance Sheet

At December 31, 2016, total assets were $148.1 billion, down $3.0 billion from the prior quarter, driven by declines in securities borrowed or purchased under resale agreements, trading account assets and loans held for investment. Total deposits increased $2.3 billion to $86.9 billion compared with the prior quarter-end, including an increase in deposits within the Transaction Banking segment. Core deposits were up $3.1 billion, compared with the prior quarter-end. Commercial paper and other short-term borrowings decreased $3.5 billion.



	4

Credit Quality

The following table presents credit quality data for the quarters ended December 31, 2016, September 30, 2016 and December 31, 2015:




	As of and for the Three Months Ended
(Dollars in millions)	December 31, 2016			September 30, 2016			December 31, 2015

Total (reversal of) provision for credit losses	$	(41	)	$	73		$	192
Net loans charged-off	19			124			(6		)
Nonaccrual loans	689			719			552
Criticized loans held for investment ⁽¹⁴⁾	2,385			2,355			2,472

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.82		%	0.87		%	0.91		%
Nonaccrual loans	92.69			96.08			130.86
Allowance for credit losses to ⁽¹⁵⁾:
Total loans held for investment	1.03			1.09			1.12
Nonaccrual loans	116.20			119.97			160.74
Nonaccrual loans to total loans held for investment	0.89			0.91			0.70

____________________________________

Refer to Exhibit 19 for footnote explanations.

In the fourth quarter of 2016, the provision (reversal) for credit losses was $(41) million, compared with $73 million for the third quarter of 2016 and $192 million for the fourth quarter of 2015. The current quarter reversal reflects refinements made to the loss factors within the commercial portfolio. Petroleum exploration and production ("PEP") loan commitments accounted for approximately 63% of our total oil and gas loan commitments at December 31, 2016, and 75% of PEP loan commitments were collateralized by oil and gas reserves.

The following table provides further information about our petroleum exploration and production loan portfolio:



	As of
(Dollars in millions)	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
Petroleum Exploration and Production:
Loan commitments	$	2,661	$	3,565	$	4,529	$	5,519
Loans outstanding	1,291		1,802		2,434		3,080
Criticized commitments	1,704		1,791		2,541		2,701
Criticized outstanding	1,027		1,075		1,577		1,705
Allowance for credit losses	184		252		320		415
Allowance for loan losses	159		225		287		386



	5

Capital

The following table presents capital ratio data as of December 31, 2016 and September 30, 2016:



	December 31, 2016		September 30, 2016
Capital ratios:

Regulatory⁽⁹⁾:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(10) (11)}	14.62	%	13.97	%
Tier 1 risk-based capital ratio ^{(10) (11)}	14.62		13.97
Total risk-based capital ratio ^{(10) (11)}	16.28		15.66
Tier 1 leverage ratio ^{(10) (11)}	9.92		9.82

Other:
Tangible common equity ratio ⁽¹²⁾	9.58	%	9.45	%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(9) (10) (13)}	14.59		13.94

____________________________________

Refer to Exhibit 19 for footnote explanations.

The Company’s stockholders' equity was $17.2 billion at December 31, 2016, compared with $17.4 billion at September 30, 2016.

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 14.62%, 14.62% and 16.28%, respectively, at December 31, 2016. The increase in the Company's risk-based capital ratios was driven by net income and a decrease in risk-weighted assets. The tangible common equity ratio was 9.58% at December 31, 2016.

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 14.59% at December 31, 2016.



	6

Non-GAAP Financial Measures

This press release includes a financial measure (net interest margin excluding MUSA) and additional capital ratios (tangible common equity and Common Equity Tier 1 capital (calculated under the U.S. Basel III standardized approach on a fully phased-in basis)) to provide useful supplemental information regarding the Company's business results and 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.

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 $148.1 billion at December 31, 2016. Its main subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. 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, 2016, MUFG Union Bank, N.A. operated 365 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 Securities Americas Inc. is a registered securities broker-dealer which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equities securities transactions. MUFG Americas Holdings Corporation is owned by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Financial Group, Inc., one of the world’s leading financial groups. The Bank of Tokyo-Mitsubishi UFJ, Ltd. is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. Visit www.unionbank.com or www.mufgamericas.com for more information.

###



	7

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															December 31, 2016 from
(Dollars in millions)	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2016		December 31, 2015
Results of operations:
Net interest income	$	802		$	773		$	754		$	724		$	730		4	%	10	%
Noninterest income	616			570			565			474			482			8		28
Total revenue	1,418			1,343			1,319			1,198			1,212			6		17
Noninterest expense	956			952			906			968			963			—		(1	)
Pre-tax, pre-provision income ⁽¹⁾	462			391			413			230			249			18		86
(Reversal of) provision for credit losses	(41		)	73			(39		)	162			192			(156	)	(121	)
Income before income taxes and including
noncontrolling interests	503			318			452			68			57			58		nm
Income tax expense	175			97			129			18			(14		)	80		nm
Net income including noncontrolling interests	328			221			323			50			71			48		362
Deduct: Net loss from noncontrolling interests	6			39			11			12			13			(85	)	(54	)
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	334		$	260		$	334		$	62		$	84		28		298

Balance sheet (end of period):
Total assets	$	148,144		$	151,099		$	147,972		$	156,554		$	153,070		(2	)	(3	)
Total securities	24,478			24,116			23,188			23,699			24,517			2		—
Securities borrowed or purchased under resale agreements	19,747			21,906			20,363			28,110			31,072			(10	)	(36	)
Total loans held for investment	77,551			79,249			81,045			80,906			79,257			(2	)	(2	)
Core deposits ⁽²⁾	80,482			77,392			75,296			74,882			76,054			4		6
Total deposits	86,947			84,643			82,652			89,460			84,300			3		3
Securities loaned or sold under repurchase agreements	24,616			25,582			23,197			27,211			29,141			(4	)	(16	)
Long-term debt	11,410			11,427			11,737			13,068			13,648			—		(16	)
MUAH stockholders' equity	17,233			17,353			17,133			16,684			16,378			(1	)	5

Balance sheet (period average):
Total assets	$	150,799		$	149,056		$	149,447		$	154,704		$	154,470		1		(2	)
Total securities	24,105			23,503			23,341			23,550			24,366			3		(1	)
Securities borrowed or purchased under resale agreements	21,859			20,668			24,030			31,698			32,341			6		(32	)
Total loans held for investment	78,615			80,469			81,542			80,083			79,501			(2	)	(1	)
Earning assets	137,964			136,051			137,198			142,153			142,179			1		(3	)
Total deposits	86,700			84,194			83,621			83,968			83,996			3		3
Securities loaned or sold under repurchase agreements	26,147			23,872			25,338			31,204			30,366			10		(14	)
MUAH stockholders' equity	17,367			17,311			16,980			16,692			16,639			—		4

Performance ratios:
Return on average assets ⁽³⁾	0.89		%	0.70		%	0.89		%	0.16		%	0.22		%
Return on average MUAH stockholders' equity ⁽³⁾	7.69			6.03			7.87			1.45			2.03
Return on average MUAH tangible common equity ^{(3) (4)}	9.71			7.60			9.92			1.94			2.72
Efficiency ratio ⁽⁵⁾	67.35			70.88			68.67			80.90			79.45
Adjusted efficiency ratio ⁽⁶⁾	64.62			62.46			62.27			73.72			70.33
Net interest margin ^{(3) (7)}	2.35			2.29			2.23			2.06			2.07

Performance ratios excluding MUSA ⁽⁸⁾:
Return on average assets ⁽³⁾	1.07		%	0.78		%	1.06		%	0.18		%	0.26		%
Return on average MUAH stockholders' equity ⁽³⁾	7.72			5.65			7.74			1.36			1.91
Return on average tangible common equity ^{(3) (4)}	9.84			7.22			9.86			1.85			2.61
Adjusted efficiency ratio ⁽⁶⁾	63.05			61.44			60.80			72.14			69.07
Net interest margin ^{(3) (7)}	2.78			2.72			2.73			2.65			2.68

Capital ratios:

Regulatory ⁽⁹⁾:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(10) (11)}	14.62		%	13.97		%	13.58		%	13.33		%	13.63		%
Tier 1 risk-based capital ratio ^{(10) (11)}	14.62			13.97			13.58			13.33			13.64
Total risk-based capital ratio ^{(10) (11)}	16.28			15.66			15.44			15.32			15.56
Tier 1 leverage ratio ^{(10) (11)}	9.92			9.82			11.59			11.41			11.40

Other:
Tangible common equity ratio ⁽¹²⁾	9.58		%	9.45		%	9.53		%	8.70		%	8.69		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(9) (10) (13)}	14.59			13.94			13.56			13.31			13.46

___________________________________________

Refer to Exhibit 19 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, 2016 from
(Dollars in millions)	2016			2015			December 31, 2015
Results of operations:
Net interest income	$	3,053		$	2,892			6	%
Noninterest income	2,225			1,850				20
Total revenue	5,278			4,742				11
Noninterest expense	3,782			3,747				1
Pre-tax, pre-provision income ⁽¹⁾	1,496			995				50
Provision for credit losses	155			227				(32	)
Income before income taxes and including
noncontrolling interests	1,341			768				75
Income tax expense	419			169				148
Net income including noncontrolling interests	922			599				54
Deduct: Net loss from noncontrolling interests	68			45				51
Net income attributable to MUAH	$	990		$	644			54

Balance sheet (end of period):
Total assets	$	148,144		$	153,070			(3	)
Total securities	24,478			24,517				—
Securities borrowed or purchased under resale agreements	19,747			31,072				(36	)
Total loans held for investment	77,551			79,257				(2	)
Core deposits ⁽²⁾	80,482			76,054				6
Total deposits	86,947			84,300				3
Securities loaned or sold under repurchase agreements	24,616			29,141				(16	)
Long-term debt	11,410			13,648				(16	)
MUAH stockholders' equity	17,233			16,378				5

Balance sheet (period average):
Total assets	$	150,901		$	152,422			(1	)
Total securities	23,625			23,418				1
Securities borrowed or purchased under resale agreements	24,546			32,503				(24	)
Total loans held for investment	80,174			78,690				2
Earning assets	138,335			140,303				(1	)
Total deposits	84,626			83,175				2
Securities loaned or sold under repurchase agreements	26,631			31,424				(15	)
MUAH stockholders' equity	17,003			16,112				6

Performance ratios:
Return on average assets ⁽³⁾	0.66		%	0.42		%
Return on average MUAH stockholders' equity ⁽³⁾	5.82			4.00
Return on average MUAH tangible common equity^{(3) (4)}	7.39			5.26
Efficiency ratio ⁽⁵⁾	71.65			79.02
Adjusted efficiency ratio ⁽⁶⁾	65.58			71.26
Net interest margin ^{(3) (7)}	2.23			2.08

Performance ratios excluding MUSA ⁽⁸⁾:
Return on average assets ⁽³⁾	0.78		%	0.52		%
Return on average MUAH stockholders' equity ⁽³⁾	5.67			3.89
Return on average tangible common equity ^{(3) (4)}	7.28			5.18
Adjusted efficiency ratio ⁽⁶⁾	64.21			69.96
Net interest margin ^{(3) (7)}	2.72			2.71

___________________________________________

Refer to Exhibit 19 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, 2016 from
(Dollars in millions)	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2016		December 31, 2015

Credit Data:
(Reversal of) provision for loan losses	$	(32	)	$	68		$	(36	)	$	158		$	168		(147	)%	(119	)%
(Reversal of) provision for losses on unfunded credit commitments	(9		)	5			(3		)	4			24			(280	)	(138	)
Total (reversal of) provision for credit losses	$	(41	)	$	73		$	(39	)	$	162		$	192		(156	)	(121	)

Net loans charged-off (recovered)	$	19		$	124		$	97		$	4		$	(6	)	(85	)	417
Nonperforming assets	692			724			648			974			573			(4	)	21
Criticized loans held for investment ⁽¹⁴⁾	2,385			2,355			2,862			3,083			2,472			1		(4	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.82		%	0.87		%	0.92		%	1.09		%	0.91		%
Nonaccrual loans	92.69			96.08			118.30			92.17			130.86
Allowance for credit losses to ⁽¹⁵⁾:
Total loans held for investment	1.03			1.09			1.13			1.30			1.12
Nonaccrual loans	116.20			119.97			144.55			109.86			160.74
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	0.09			0.61			0.48			0.02			(0.03		)
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.89			0.91			0.80			1.20			0.72
Nonperforming assets to total assets	0.47			0.48			0.44			0.62			0.37
Nonaccrual loans to total loans held for investment	0.89			0.91			0.78			1.18			0.70


	As of and for the Year Ended						Percent Change
	December 31,			December 31,			to December 31, 2016
(Dollars in millions)	2016			2015			from December 31, 2015
Credit Data:
Provision for loan losses	$	158		$	213		(26)%
(Reversal of) provision for losses on unfunded credit commitments	(3		)	14			(121)
Total provision for credit losses	$	155		$	227		(32)%

Net loans charged-off	$	244		$	28		nm
Credit Ratios:
Net loans charged-off to average total loans held for investment⁽³⁾	0.30		%	0.03		%

____________________________________________

Refer to Exhibit 19 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, 2016			September 30, 2016		June 30, 2016			March 31, 2016		December 31, 2015
Interest Income
	Loans		$	703		$	711	$	719		$	706	$	705
	Securities		137			122		114			110		124
	Securities borrowed or purchased under resale
	agreements		54			47		44			50		34
	Trading assets		62			50		38			22		13
	Other		11			6		4			6		2
		Total interest income	967			936		919			894		878

Interest Expense
	Deposits		47			49		49			49		50
	Commercial paper and other short-term borrowings		15			7		7			3		2
	Long-term debt		47			57		63			73		70
	Securities loaned or sold under repurchase agreements		41			36		31			32		18
	Trading liabilities		15			14		15			13		8
		Total interest expense	165			163		165			170		148

Net Interest Income			802			773		754			724		730
	(Reversal of) provision for credit losses		(41		)	73		(39		)	162		192
		Net interest income after (reversal of) provision for
		credit losses	843			700		793			562		538

Noninterest Income
	Service charges on deposit accounts		49			48		46			49		48
	Trust and investment management fees		29			29		30			32		29
	Trading account activities		12			25		40			28		24
	Securities gains, net		14			23		19			13		6
	Credit facility fees		26			27		28			27		29
	Brokerage commissions and fees		5			15		25			19		16
	Card processing fees, net		11			10		9			9		8
	Investment banking and syndication fees		59			113		79			61		62
	Fees from affiliates ⁽¹⁶⁾		265			222		258			212		210
	Other, net		146			58		31			24		50
		Total noninterest income	616			570		565			474		482

Noninterest Expense
	Salaries and employee benefits		596			592		572			595		604
	Net occupancy and equipment		83			82		79			81		88
	Professional and outside services		99			84		81			105		87
	Software		41			39		37			37		34
	Regulatory assessments		22			22		14			14		13
	Intangible asset amortization		8			7		6			7		10
	Other		107			126		117			129		127
		Total noninterest expense	956			952		906			968		963

	Income before income taxes and including
	noncontrolling interests		503			318		452			68		57
	Income tax expense		175			97		129			18		(14		)
Net Income including Noncontrolling Interests			328			221		323			50		71
	Deduct: Net loss from noncontrolling interests		6			39		11			12		13
Net Income attributable to MUAH			$	334		$	260	$	334		$	62	$	84

____________________________________________

Refer to Exhibit 19 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, 2016		December 31, 2015
Interest Income
	Loans		$	2,839	$	2,797
	Securities		483		463
	Securities borrowed or purchased under resale agreements		195		112
	Trading assets		172		53
	Other		27		12
		Total interest income	3,716		3,437

Interest Expense
	Deposits		194		200
	Commercial paper and other short-term borrowings		32		13
	Long-term debt		240		250
	Securities loaned or sold under repurchase agreements		140		52
	Trading liabilities		57		30
		Total interest expense	663		545

Net Interest Income			3,053		2,892
	Provision for credit losses		155		227
		Net interest income after provision for credit losses	2,898		2,665

Noninterest Income
	Service charges on deposit accounts		192		195
	Trust and investment management fees		120		111
	Trading account activities		105		62
	Securities gains, net		69		20
	Credit facility fees		108		117
	Brokerage commissions and fees		64		79
	Card processing fees, net		39		33
	Investment banking and syndication fees		312		319
	Fees from affiliates ⁽¹⁶⁾		957		763
	Other, net		259		151
		Total noninterest income	2,225		1,850

Noninterest Expense
	Salaries and employee benefits		2,355		2,414
	Net occupancy and equipment		325		335
	Professional and outside services		369		318
	Software		154		120
	Regulatory assessments		72		53
	Intangible asset amortization		28		42
	Other		479		465
		Total noninterest expense	3,782		3,747

	Income before income taxes and including
	noncontrolling interests		1,341		768
	Income tax expense		419		169
Net Income including Noncontrolling Interests			922		599
	Deduct: Net loss from noncontrolling interests		68		45
Net Income attributable to MUAH			$	990	$	644

___________________________________________

Refer to Exhibit 19 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, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Assets
Cash and due from banks				$	1,909		$	1,837		$	1,766		$	1,813		$	2,058
Interest bearing deposits in banks				3,844			3,537			2,306			6,747			2,749
Federal funds sold				—			—			10			—			—
		Total cash and cash equivalents		5,753			5,374			4,082			8,560			4,807
Securities borrowed or purchased under resale agreements				19,747			21,906			20,363			28,110			31,072
Trading account assets				8,942			9,405			8,427			5,629			3,734
Securities available for sale				14,141			13,728			12,929			13,094			14,359
Securities held to maturity				10,337			10,388			10,259			10,605			10,158
Loans held for investment				77,551			79,249			81,045			80,906			79,257
	Allowance for loan losses			(639		)	(691		)	(748		)	(881		)	(723		)
		Loans held for investment, net		76,912			78,558			80,297			80,025			78,534
Premises and equipment, net				591			591			599			666			644
Goodwill				3,225			3,225			3,225			3,225			3,225
Other assets				8,496			7,924			7,791			6,640			6,537
			Total assets	$	148,144		$	151,099		$	147,972		$	156,554		$	153,070

Liabilities
Deposits:
	Noninterest bearing			$	35,654		$	34,186		$	32,861		$	38,556		$	32,463
	Interest bearing			51,293			50,457			49,791			50,904			51,837
		Total deposits		86,947			84,643			82,652			89,460			84,300
Securities loaned or sold under repurchase agreements				24,616			25,582			23,197			27,211			29,141
Commercial paper and other short-term borrowings				2,360			5,865			7,137			3,179			3,425
Long-term debt				11,410			11,427			11,737			13,068			13,648
Trading account liabilities				2,905			3,328			3,053			4,375			3,712
Other liabilities				2,520			2,742			2,863			2,367			2,251
			Total liabilities	130,758			133,587			130,639			139,660			136,477

Equity
MUAH stockholders' equity:
	Common stock, par value $1 per share:
		Authorized 300,000,000 shares; 144,322,280 shares issued and outstanding as of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015		144			144			144			144			144
	Additional paid-in capital			7,884			7,871			7,870			7,878			7,868
	Retained earnings			10,101			9,769			9,509			9,178			9,116
	Accumulated other comprehensive loss			(896		)	(431		)	(390		)	(516		)	(750		)
			Total MUAH stockholders' equity	17,233			17,353			17,133			16,684			16,378
Noncontrolling interests				153			159			200			210			215
			Total equity	17,386			17,512			17,333			16,894			16,593
			Total liabilities and equity	$	148,144		$	151,099		$	147,972		$	156,554		$	153,070

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	December 31, 2016							September 30, 2016
				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	$	26,892		$	224	3.31	%	$	29,008		$	235	3.22	%
Commercial mortgage	14,737			137		3.72		15,048			141		3.75
Construction	2,211			22		3.99		2,242			23		4.09
Lease financing	1,822			15		3.49		1,851			15		3.26
Residential mortgage	29,182			238		3.27		28,572			234		3.28
Home equity and other consumer loans	3,527			49		5.48		3,480			44		5.04
Loans, before purchased credit-impaired loans	78,371			685		3.49		80,201			692		3.44
Purchased credit-impaired loans	244			20		32.20		268			22		32.11
Total loans held for investment	78,615			705		3.58		80,469			714		3.54
Securities	24,105			142		2.36		23,503			127		2.16
Securities borrowed or purchased under resale agreements	21,859			55		0.99		20,668			47		0.90
Interest bearing deposits in banks	4,441			6		0.53		3,522			4		0.50
Federal funds sold	2			—		0.71		7			—		0.71
Trading account assets	8,283			62		2.96		7,503			50		2.66
Other earning assets	659			4		2.95		379			2		2.34
Total earning assets	137,964			974		2.82		136,051			944		2.77
Allowance for loan losses	(697		)					(757		)
Cash and due from banks	1,878							1,864
Premises and equipment, net	586							588
Other assets ⁽¹⁸⁾	11,068							11,310
Total assets	$	150,799						$	149,056
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,523		31		0.31		$	37,688		29		0.31
Savings	5,925			1		0.04		5,826			1		0.04
Time	5,901			15		1.08		6,700			19		1.13
Total interest bearing deposits	51,349			47		0.37		50,214			49		0.39
Commercial paper and other short-term borrowings	4,109			15		1.38		6,281			7		0.44
Securities loaned or sold under repurchase agreements	26,147			41		0.63		23,872			36		0.60
Long-term debt	11,285			47		1.69		11,928			57		1.92
Total borrowed funds	41,541			103		0.99		42,081			100		0.95
Trading account liabilities	2,552			15		2.28		2,549			14		2.20
Total interest bearing liabilities	95,442			165		0.69		94,844			163		0.69
Noninterest bearing deposits	35,351							33,980
Other liabilities ⁽¹⁹⁾	2,490							2,733
Total liabilities	133,283							131,557
Equity
MUAH stockholders' equity	17,367							17,311
Noncontrolling interests	149							188
Total equity	17,516							17,499
Total liabilities and equity	$	150,799						$	149,056

Net interest income/spread (taxable-equivalent basis)				809		2.13	%				781		2.08	%
Impact of noninterest bearing deposits						0.19							0.18
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.35							2.29
Less: taxable-equivalent adjustment				7							8
Net interest income				$	802						$	773

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	December 31, 2016							December 31, 2015
				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	$	26,892		$	224	3.31	%	$	30,209		$	240	3.16	%
Commercial mortgage	14,737			137		3.72		13,997			128		3.66
Construction	2,211			22		3.99		2,210			21		3.81
Lease financing	1,822			15		3.49		1,928			18		3.81
Residential mortgage	29,182			238		3.27		27,622			234		3.39
Home equity and other consumer loans	3,527			49		5.48		3,171			37		4.57
Loans, before purchased credit-impaired loans	78,371			685		3.49		79,137			678		3.42
Purchased credit-impaired loans	244			20		32.20		364			28		30.30
Total loans held for investment	78,615			705		3.58		79,501			706		3.54
Securities	24,105			142		2.36		24,366			129		2.12
Securities borrowed or purchased under resale agreements	21,859			55		0.99		32,341			34		0.42
Interest bearing deposits in banks	4,441			6		0.53		2,759			2		0.25
Federal funds sold	2			—		0.71		38			—		0.32
Trading account assets	8,283			62		2.96		3,000			13		1.72
Other earning assets	659			4		2.95		173			1		2.47
Total earning assets	137,964			974		2.82		142,178			885		2.48
Allowance for loan losses	(697		)					(554		)
Cash and due from banks	1,878							2,027
Premises and equipment, net	586							634
Other assets ⁽¹⁸⁾	11,068							10,185
Total assets	$	150,799						$	154,470
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,523		31		0.31		$	38,118		27		0.28
Savings	5,925			1		0.04		5,670			1		0.06
Time	5,901			15		1.08		7,670			22		1.14
Total interest bearing deposits	51,349			47		0.37		51,458			50		0.39
Commercial paper and other short-term borrowings	4,109			15		1.38		4,071			2		0.32
Securities loaned or sold under repurchase agreements	26,147			41		0.63		30,366			18		0.23
Long-term debt	11,285			47		1.69		12,912			70		2.15
Total borrowed funds	41,541			103		0.99		47,349			90		0.76
Trading account liabilities	2,552			15		2.28		3,433			8		0.87
Total interest bearing liabilities	95,442			165		0.69		102,240			148		0.57
Noninterest bearing deposits	35,351							32,538
Other liabilities ⁽¹⁹⁾	2,490							2,860
Total liabilities	133,283							137,638
Equity
MUAH stockholders' equity	17,367							16,639
Noncontrolling interests	149							193
Total equity	17,516							16,832
Total liabilities and equity	$	150,799						$	154,470

Net interest income/spread (taxable-equivalent basis)				809		2.13	%				737		1.91	%
Impact of noninterest bearing deposits						0.19							0.14
Impact of other noninterest bearing sources						0.03							0.02
Net interest margin						2.35							2.07
Less: taxable-equivalent adjustment				7							7
Net interest income				$	802						$	730

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Year Ended
	December 31, 2016							December 31, 2015
				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	$	29,286		$	976	3.33	%	$	29,126		$	906	3.11	%
Commercial mortgage	14,842			525		3.54		13,876			508		3.66
Construction	2,234			82		3.65		2,054			76		3.71
Lease financing	1,855			62		3.36		1,934			67		3.46
Residential mortgage	28,226			933		3.31		28,138			957		3.40
Home equity and other consumer loans	3,449			176		5.09		3,122			137		4.38
Loans, before purchased credit-impaired loans	79,892			2,754		3.45		78,250			2,651		3.39
Purchased credit-impaired loans	282			93		33.06		440			151		34.46
Total loans held for investment	80,174			2,847		3.55		78,690			2,802		3.56
Securities	23,625			503		2.13		23,418			483		2.06
Securities borrowed or purchased under resale agreements	24,546			196		0.80		32,503			112		0.34
Interest bearing deposits in banks	3,020			16		0.53		2,618			6		0.24
Federal funds sold	16			—		0.56		18			—		0.30
Trading account assets	6,538			172		2.63		2,796			53		1.90
Other earning assets	416			11		2.66		260			6		2.44
Total earning assets	138,335			3,745		2.71		140,303			3,462		2.47
Allowance for loan losses	(766		)					(544		)
Cash and due from banks	1,857							1,915
Premises and equipment, net	615							631
Other assets ⁽¹⁸⁾	10,860							10,118
Total assets	$	150,901						$	152,423
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	38,273		116		0.30		$	38,330		114		0.30
Savings	5,802			3		0.05		5,624			3		0.06
Time	6,921			75		1.09		8,305			83		1.00
Total interest bearing deposits	50,996			194		0.38		52,259			200		0.38
Commercial paper and other short-term borrowings	5,204			32		0.62		5,530			13		0.33
Securities loaned or sold under repurchase agreements	26,631			140		0.52		31,424			52		0.17
Long-term debt	11,904			240		2.01		10,445			250		2.34
Total borrowed funds	43,739			412		0.94		47,399			315		0.66
Trading account liabilities	2,662			57		2.13		2,615			30		1.14
Total interest bearing liabilities	97,397			663		0.68		102,273			545		0.53
Noninterest bearing deposits	33,630							30,916
Other liabilities ⁽¹⁹⁾	2,694							2,912
Total liabilities	133,721							136,101
Equity
MUAH stockholders' equity	17,003							16,112
Noncontrolling interests	177							210
Total equity	17,180							16,322
Total liabilities and equity	$	150,901						$	152,423

Net interest income/spread (taxable-equivalent basis)				3,082		2.03	%				2,917		1.94	%
Impact of noninterest bearing deposits						0.17							0.12
Impact of other noninterest bearing sources						0.03							0.02
Net interest margin						2.23							2.08
Less: taxable-equivalent adjustment				29							25
Net interest income				$	3,053						$	2,892

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 9

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



(Dollars in millions)					December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015

Loans held for investment
	Loans held for investment:
		Commercial and industrial			$	25,337	$	27,618	$	29,789	$	30,681	$	30,214
		Commercial mortgage			14,547		14,937		15,144		14,920		13,904
		Construction			2,283		2,257		2,255		2,251		2,297
		Lease financing			1,819		1,840		1,878		1,870		1,911
			Total commercial portfolio		43,986		46,652		49,066		49,722		48,326

		Residential mortgage			29,836		28,781		28,244		27,495		27,344
		Home equity and other consumer loans			3,492		3,559		3,459		3,385		3,251
			Total consumer portfolio		33,328		32,340		31,703		30,880		30,595

				Loans held for investment, before purchased credit -impaired loans	77,314		78,992		80,769		80,602		78,921
		Purchased credit-impaired loans			237		257		276		304		336
				Total loans held for investment	$	77,551	$	79,249	$	81,045	$	80,906	$	79,257

Nonperforming Assets
	Nonaccrual loans:
		Commercial and industrial			$	457	$	486	$	396	$	702	$	284
		Commercial mortgage			31		31		26		30		37
			Total commercial portfolio		488		517		422		732		321

		Residential mortgage			171		172		177		186		190
		Home equity and other consumer loans			26		26		28		32		35
			Total consumer portfolio		197		198		205		218		225

				Nonaccrual loans, before purchased credit-impaired loans	685		715		627		950		546
		Purchased credit-impaired loans			4		4		5		6		6
				Total nonaccrual loans	689		719		632		956		552

	OREO				3		5		16		18		21

				Total nonperforming assets	$	692	$	724	$	648	$	974	$	573

	Loans 90 days or more past due and still accruing ⁽²⁰⁾				$	10	$	10	$	2	$	6	$	2

__________________________________________

Refer to Exhibit 19 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, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015

Analysis of Allowance for Credit Losses
Allowance for loan losses, beginning of period	$	691		$	748		$	881		$	723		$	549
(Reversal of) provision for loan losses	(32		)	68			(36		)	158			168
Other	(1		)	(1		)	—			4			—
Loans charged-off:
Commercial and industrial	(26		)	(66		)	(46		)	(8		)	—
Commercial and industrial - transfer to held for sale	(2		)	(60		)	(51		)	—			—
Total commercial portfolio	(28		)	(126		)	(97		)	(8		)	—
Residential mortgage	—			2			—			1			—
Home equity and other consumer loans	(7		)	(4		)	(2		)	(2		)	(1		)
Total consumer portfolio	(7		)	(2		)	(2		)	(1		)	(1		)
Purchased credit-impaired loans	—			—			—			—			(1		)
Total loans charged-off	(35		)	(128		)	(99		)	(9		)	(2		)
Recoveries of loans previously charged-off:
Commercial and industrial	15			2			2			1			7
Commercial mortgage	—			1			—			3			—
Total commercial portfolio	15			3			2			4			7
Home equity and other consumer loans	1			1			—			1			—
Total consumer portfolio	1			1			—			1			—
Purchased credit-impaired loans	—			—			—			—			1
Total recoveries of loans previously charged-off	16			4			2			5			8
Net loans (charged-off) recovered	(19		)	(124		)	(97		)	(4		)	6
Ending balance of allowance for loan losses	639			691			748			881			723
Allowance for losses on unfunded credit commitments	162			171			166			169			165
Total allowance for credit losses	$	801		$	862		$	914		$	1,050		$	888



	Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			December 31, 2016				September 30, 2016				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		September 30, 2016			September 30, 2016
Asset Liability Management securities:
U.S. Treasury			$	2,625	$	2,505	$	1,638	$	1,642	$	863		53	%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		6,814		6,695		6,284		6,321		374			6
	Privately issued		333		327		297		299		28			9
Privately issued - commercial mortgage-backed securities			666		664		1,020		1,058		(394		)	(37	)
Collateralized loan obligations			2,219		2,218		2,713		2,709		(491		)	(18	)
Other			7		7		7		7		—			—
		Asset Liability Management securities	12,664		12,416		11,959		12,036		380			3
Other debt securities:
Direct bank purchase bonds			1,601		1,613		1,543		1,568		45			3
Other			108		107		114		116		(9		)	(8	)
Equity securities			5		5		6		8		(3		)	(38	)
		Total securities available for sale	$	14,378	$	14,141	$	13,622	$	13,728	$	413		3	%

Securities Held to Maturity

			December 31, 2016				September 30, 2016				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²¹⁾		Value		Amount ⁽²¹⁾		Value		September 30, 2016			September 30, 2016
U.S. Treasury			$	492	$	497	$	491	$	502	$	1		—	%
U.S. government agency and government-sponsored agencies-residential mortgage-backed securities			8,263		8,201		8,277		8,441		(14		)	—
U.S. government agency and government-sponsored agencies-commercial mortgage-backed securities			1,582		1,618		1,620		1,706		(38		)	(2	)
		Total securities held to maturity	$	10,337	$	10,316	$	10,388	$	10,649	$	(51	)	—	%

___________________________________________

Refer to Exhibit 19 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, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Net income attributable to MUAH	$	334		$	260		$	334		$	62		$	84
Add: intangible asset amortization, net of tax	5			4			4			4			6
Net income attributable to MUAH, excluding intangible asset amortization (a)	$	339		$	264		$	338		$	66		$	90

Average MUAH stockholders' equity	$	17,367		$	17,311		$	16,980		$	16,692		$	16,639
Less: Goodwill	3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except mortgage servicing rights (MSRs)	226			193			179			186			194
Less: Deferred tax liabilities related to goodwill and intangible assets	(50		)	(50		)	(48		)	(44		)	(39		)
Average tangible common equity (b)	$	13,966		$	13,943		$	13,624		$	13,325		$	13,259
Return on average MUAH tangible common equity ^{(3) (4)}(a)/(b)	9.71		%	7.60		%	9.92		%	1.94		%	2.72		%

Noninterest expense	$	956		$	952		$	906		$	968		$	963
Less: Staff costs associated with fees from affiliates - support services	162			139			137			139			138
Less: Foreclosed asset expense and other credit costs	1			1			—			(1		)	—
Less: Productivity initiative costs	26			18			4			12			41
Less: Low income housing credit (LIHC) investment amortization expense	3			2			2			1			6
Less: Expenses of the LIHC consolidated VIEs	5			40			11			12			13
Less: Merger and business integration costs	5			3			5			5			6
Less: Net adjustments related to privatization transaction	3			4			5			5			8
Less: Intangible asset amortization	5			3			2			3			3
Less: Contract termination fee	3			(2		)	—			—			—
Noninterest expense, as adjusted (c)	$	743		$	744		$	740		$	792		$	748

Total revenue	$	1,418		$	1,343		$	1,319		$	1,198		$	1,212
Add: Net interest income taxable-equivalent adjustment	7			8			8			6			7
Less: Fees from affiliates - support services	175			150			147			149			149
Less: Productivity initiative gains	71			—			—			—			—
Less: Accretion related to privatization-related fair value adjustments	1			2			3			5			2
Less: Other credit costs	23			4			(9		)	(13		)	4
Less: Impairment on private equity investments	1			3			—			(12		)	1
Less: Gains on sale of fixed assets	3			—			—			—			—
Total revenue, as adjusted (d)	$	1,151		$	1,192		$	1,186		$	1,075		$	1,063
Adjusted efficiency ratio (c)/(d) ⁽⁶⁾	64.62		%	62.46		%	62.27		%	73.72		%	70.33		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 13

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

The following table presents a reconciliation between certain 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, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Total MUAH stockholders' equity		$	17,233		$	17,353		$	17,133		$	16,684		$	16,378
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		223			224			175			182			190
Less: Deferred tax liabilities related to goodwill and intangible assets		(79		)	(52		)	(48		)	(49		)	(39		)
	Tangible common equity (e)	$	13,864		$	13,956		$	13,781		$	13,326		$	13,002
Total assets		$	148,144		$	151,099		$	147,972		$	156,554		$	153,070
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		223			224			175			182			190
Less: Deferred tax liabilities related to goodwill and intangible assets		(79		)	(52		)	(48		)	(49		)	(39		)
	Tangible assets (f)	$	144,775		$	147,702		$	144,620		$	153,196		$	149,694
Tangible common equity ratio (e)/(f) ⁽¹²⁾		9.58		%	9.45		%	9.53		%	8.70		%	8.69		%

Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (g)		$	14,757		$	14,426		$	13,233		$	12,936		$	12,920
Other		(57		)	(55		)	(38		)	(40		)	(61		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (h)	$	14,700		$	14,371		$	13,195		$	12,896		$	12,859
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (i)		$	100,912		$	103,265		$	97,412		$	97,011		$	94,775
Add: Adjustments		(137		)	(142		)	(118		)	(122		)	756
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased-in) (j)	$	100,775		$	103,123		$	97,294		$	96,889		$	95,531
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) (h)/(j) ^{(9) (10) (13)}		14.59		%	13.94		%	13.56		%	13.31		%	13.46		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 14

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

The following table presents a reconciliation between certain GAAP amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios.



		As of and for the Year Ended
		December 31,			December 31,
(Dollars in millions)		2016			2015

Net income attributable to MUAH		$	990		$	644
Add: Intangible asset amortization, net of tax		17			26
Net income attributable to MUAH, excluding intangible asset amortization (a)		$	1,007		$	670

Average MUAH stockholders' equity		$	17,003		$	16,112
Less: Goodwill		3,225			3,225
Less: Intangible assets, except MSRs		196			212
Less: Deferred tax liabilities related to goodwill and intangible assets		(47		)	(52		)
Average tangible common equity (b)		$	13,629		$	12,727
Return on average MUAH tangible common equity ^{(3) (4)}(a)/(b)		7.39		%	5.26		%

Noninterest expense		$	3,782		$	3,747
Less: Staff costs associated with fees from affiliates - support services		577			507
Less: Foreclosed asset expense and other credit costs		1			(4		)
Less: Productivity initiative costs		60			82
Less: Low income housing credit (LIHC) investment amortization expense		8			15
Less: Expenses of the LIHC consolidated VIEs		68			45
Less: Merger and business integration costs		18			29
Less: Net adjustments related to privatization transaction		17			30
Less: Intangible asset amortization		13			14
Less: Contract termination fee		1			23
	Noninterest expense, as adjusted (c)	$	3,019		$	3,006

Total revenue		$	5,278		$	4,742
Add: Net interest income taxable-equivalent adjustment		29			25
Less: Fees from affiliates - support services		621			546
Less: Productivity initiative gains		71			—
Less: Accretion related to privatization-related fair value adjustments		11			8
Less: Other credit costs		5			—
Less: Impairment on private equity investments		(8		)	(4		)
Less: Gains on sale of fixed assets		3			—
	Total revenue, as adjusted (d)	$	4,604		$	4,217
Adjusted efficiency ratio (c)/(d) ⁽⁶⁾		65.58		%	71.26		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 15

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

The following table presents a reconciliation between certain 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, 2016			September 30, 2016			June 30, 2016				March 31, 2016				December 31, 2015
Performance ratios excluding MUSA ⁽⁸⁾:
Net income attributable to MUAH		$	334		$	260		$	334			$	62			$	84
Less: Net income attributable to MUSA		12			26			19				6				8
MUAH net income, excluding MUSA (k)		322			234			315				56				76

Average total assets		$	150,800		$	149,056		$	149,447			$	154,704			$	154,470
Less: Average total assets attributable to MUSA		30,930			28,696			30,395				36,088				35,792
Average total assets excluding MUSA (l)		$	119,870		$	120,360		$	119,052			$	118,616			$	118,678
Return on average assets, excluding MUSA ⁽³⁾(k)/(l)		1.07		%	0.78		%	1.06		%		0.18		%		0.26		%

Average MUAH stockholders' equity		$	17,367		$	17,311		$	16,980			$	16,692			$	16,639
Less: Average MUSA stockholder's equity		694			671			678				633				627
Average MUAH stockholders' equity, excluding MUSA (m)		16,673			16,640			16,302				16,059				16,012
Return on average MUAH stockholders' equity, excluding MUSA ⁽³⁾(k)/(m)		7.72		%	5.65		%	7.74		%		1.36		%		1.91		%

Net income attributable to MUAH, excluding intangible asset amortization		$	339		$	264		$	338			$	66			$	90
Less: Net income attributable to MUSA		12			26			19				6				8
Net income attributable to MUAH excluding MUSA and intangible asset amortization (n)		$	327		$	238		$	319			$	60			$	82

Average MUAH tangible common equity		$	13,966		$	13,943		$	13,624			$	13,325			$	13,259
Less: Average MUSA stockholder's equity		694			671			678				633				627
Average tangible common equity, excluding MUSA (o)		$	13,272		$	13,272		$	12,946			$	12,692			$	12,632
Return on average tangible common equity, excluding MUSA ^{(3) (4)} (n)/(o)		9.84		%	7.22		%	9.86		%		1.85		%		2.61		%

Noninterest expense, as adjusted		$	743		$	744		$	740			$	792			$	748
Less: noninterest expense attributable to MUSA		85			99			92				86				70
	Noninterest expense, as adjusted excluding MUSA (p)	$	658		$	645		$	648			$	706			$	678

Total revenue, as adjusted		$	1,151		$	1,192		$	1,186			$	1,075			$	1,063
Less: revenue attributable to MUSA		105			142			123				96				82
	Total revenue, as adjusted excluding MUSA (q)	$	1,046		$	1,050		$	1,063		—	$	979		—	$	981
Adjusted efficiency ratio excluding MUSA ⁽⁶⁾(p)/(q)		63.05		%	61.44		%	60.80		%		72.14		%		69.07		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 16

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

The following table presents a reconciliation between certain GAAP amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios.



		As of and for the Year Ended
(Dollars in millions)		December 31, 2016			December 31, 2015
Performance ratios excluding MUSA ⁽⁸⁾:
Net income attributable to MUAH		$	990		$	644
Less: Net income attributable to MUSA		63			35
MUAH net income, excluding MUSA (k)		927			609

Average total assets		$	150,902		$	152,423
Less: Average total assets attributable to MUSA		31,518			35,702
Average total assets excluding MUSA (l)		$	119,384		$	116,721
Return on average assets, excluding MUSA ⁽³⁾(k)/(l)		0.78		%	0.52		%

Average MUAH stockholders' equity		$	17,003		$	16,112
Less: Average MUSA stockholder's equity		669			469
Average MUAH stockholders' equity, excluding MUSA (m)		16,334			15,643
Return on average MUAH stockholders' equity, excluding MUSA ⁽³⁾(k)/(m)		5.67		%	3.89		%

Net income attributable to MUAH, excluding intangible asset amortization		$	1,007		$	670
Less: Net income attributable to MUSA		63			35
Net income attributable to MUAH excluding MUSA and intangible asset amortization (n)		$	944		$	635

Average tangible common equity		$	13,629		$	12,727
Less: Average MUSA stockholder's equity		669			469
Average tangible common equity, excluding MUSA (o)		$	12,960		$	12,258
Return on average tangible common equity, excluding MUSA ^{(3) (4)}(n)/(o)		7.28		%	5.18		%

Noninterest expense, as adjusted		$	3,019		$	3,006
Less: noninterest expense attributable to MUSA		362			315
	Noninterest expense, as adjusted excluding MUSA (p)	$	2,657		$	2,691

Total revenue, as adjusted		$	4,604		$	4,217
Less: revenue attributable to MUSA		466			372
	Total revenue, as adjusted excluding MUSA (q)	$	4,138		$	3,845
Adjusted efficiency ratio excluding MUSA ⁽⁶⁾(p)/(q)		64.21		%	69.96		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 17

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

The following table presents a reconciliation between certain GAAP amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios.



Performance ratios excluding MUSA ⁽⁸⁾:

		As of and for the Three Months Ended
(Dollars in millions)		December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Net interest income (taxable-equivalent basis)		$	809		$	781		$	762		$	730		$	737
Less: Net interest income (taxable-equivalent basis) attributable to MUSA		58			46			35			25			20
	Net interest income (taxable-equivalent basis) excluding MUSA (t)	$	751		$	735		$	727		$	705		$	717
Total average earning assets		$	137,964		$	136,051		$	137,198		$	142,153		$	142,178
Less: Total average earning assets attributable to MUSA		30,096			28,115			30,343			35,577			35,517
	Total average earning assets excluding MUSA (u)	$	107,868		$	107,936		$	106,855		$	106,576		$	106,661
Net interest margin excluding MUSA (t)/(u) ⁽³⁾		2.78		%	2.72		%	2.73		%	2.65		%	2.68		%




		As of and for the Year Ended
		December 31,			December 31,
(Dollars in millions)		2016			2015
Net interest income (taxable-equivalent basis)		$	3,082		$	2,917
Less: Net interest income (taxable-equivalent basis) attributable to MUSA		164			72
	Net interest income (taxable-equivalent basis) excluding MUSA (v)	$	2,918		$	2,845
Total average earning assets		$	138,335		$	140,303
Less: Total average earning assets attributable to MUSA		31,022			35,417
	Total average earning assets excluding MUSA (w)	$	107,313		$	104,886
Net interest margin excluding MUSA (v)/(w) ⁽³⁾		2.72		%	2.71		%

____________________________________________

Refer to Exhibit 19 for footnote explanations.



	Exhibit 18

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 credit losses through a credit cycle.


(2)	Core deposits exclude brokered deposits, foreign time deposits, domestic time deposits greater than $250,000 and certain other deposits not considered to be core customer relationships.


(3)	Annualized.

(4)

Return on tangible common equity, a non-GAAP financial measure, is net income excluding intangible asset amortization divided by average tangible common equity. Management believes that this ratio provides useful supplemental information regarding the Company's business results. The methodology for determining tangible common equity may differ among companies. Please refer to Exhibits 13,15,16 and 17 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, 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, other credit costs, impairment on private equity investments and gains on sale of fixed assets. 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 13,15,16 and 17 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%. Beginning in the second quarter of 2016, the effect of interest rate hedges on commercial loans was reflected in each loan category. Previously, the entire effect of interest rate hedges was included in commercial and industrial interest income. Prior period amounts have been reclassified to conform to the current presentation.


(8)	These performance ratios, which are non-GAAP financial measures, do not include MUFG Securities Americas Inc. (MUSA), MUAH's broker-dealer subsidiary. Management believes these ratios provide useful supplemental information regarding the results of the Company's banking business. Please refer to Exhibits 16, 17, and 18 for reconciliations between certain GAAP amounts and these non-GAAP measures.


(9)	Ratios calculated at December 31, 2016 and September 30, 2016 reflect the designation of MUAH as the U.S. Intermediate Holding Company (IHC) of MUFG on July 1, 2016. Prior period ratios have not been revised to include the transferred IHC entities.


(10)	Preliminary as of December 31, 2016.


(11)	These capital ratios 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.

(12)

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

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.


(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 as a percentage of end of period total loans held for investment or total nonaccrual loans, as appropriate.


(16)	Fees from affiliates represent income from BTMU pursuant to a master services agreement whereby the Bank provides BTMU with support services for its U.S. branch banking operations in exchange for fee income.


(17)	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.


(18)	Includes noninterest bearing trading account assets.


(19)	Includes noninterest bearing trading account liabilities.


(20)	Excludes loans totaling $13 million, $13 million, $16 million, $28 million, and $16 million that are 90 days or more past due and still accruing

at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, 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.


(21)	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



	Exhibit 19

Alan Gulick

Doug Lambert

Corporate Communications

Investor Relations

(425) 423-7317

(212) 782-6872