Exhibit 99.1
UnionBanCal Corporation Announces First Quarter Results
SAN FRANCISCO--(BUSINESS WIRE)--April 24, 2009--UnionBanCal Corporation:
Highlights:
- First quarter loss from continuing operations was $10 million. Excluding after-tax net expenses of $21 million related to the November 2008 privatization of UnionBanCal Corporation, first quarter income from continuing operations was $11 million.
- First quarter revenue was up 12 percent year-over-year and down 0.5 percent compared with fourth quarter 2008
- First quarter net interest income was up 21 percent year-over-year and flat compared with fourth quarter 2008
- First quarter average total loans increased 17 percent year-over-year and 2 percent versus fourth quarter 2008
- First quarter average core deposits were up 24 percent year-over-year and 11 percent versus fourth quarter 2008
- First quarter net interest margin was 3.79 percent, up 24 basis points year-over-year and down 7 basis points versus fourth quarter 2008
- First quarter average all-in cost of funds was 1.03 percent
- First quarter asset quality metrics:
- Total provision for credit losses was $275 million
- Net loans charged-off were $116 million, or 0.95 percent annualized of average total loans
- Nonperforming assets were $835 million, or 1.21 percent of total assets, at quarter-end
- Allowance for credit losses to nonaccrual loans was 126 percent at quarter-end
- Tangible common equity ratio was 7.12 percent at March 31, 2009
UnionBanCal Corporation (the Company or UB) today reported a first quarter 2009 net loss of $9.8 million. Loss from continuing operations for first quarter 2009 was also $9.8 million, compared with income from continuing operations of $122.4 million a year earlier, and loss from continuing operations of $82.9 million in fourth quarter 2008. First quarter 2009 loss from continuing operations included after-tax net expenses of $21 million due to the privatization transaction, and fourth quarter 2008 loss from continuing operations included after-tax net expenses of $77 million due to the privatization transaction. Mitsubishi UFJ Financial Group, Inc. (MUFG), through its wholly-owned subsidiary, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), completed its acquisition of all of the outstanding shares of the Company’s common stock (the “privatization transaction”), on November 4, 2008.
Summary of First Quarter Results From Continuing Operations
First Quarter Total Revenue
For first quarter 2009, total revenue (taxable-equivalent net interest income plus noninterest income) was $737 million, up 12 percent compared with first quarter 2008. Net interest income increased 21 percent and noninterest income decreased 11 percent. Average total loans increased $7.1 billion, or 17 percent, average interest bearing deposits increased $3.1 billion, or 10 percent, and average noninterest bearing deposits were flat. The net interest margin in first quarter 2009 was 3.79 percent, an increase of 24 basis points compared with first quarter 2008.
Average noninterest bearing deposits represented 26.9 percent of average total deposits in first quarter 2009. The annualized average all-in cost of funds was 1.03 percent, compared with 2.26 percent in first quarter 2008. The Company’s average core deposit-to-loan ratio was 79.1 percent in first quarter 2009.
Compared with fourth quarter 2008, total revenue was down 0.5 percent, with net interest income flat and noninterest income down 2.4 percent. Average total loans increased $0.8 billion, or 1.6 percent, average interest bearing deposits increased $2.9 billion, or 9.4 percent, and average noninterest bearing deposits decreased $0.3 billion, or 2.7 percent. The net interest margin decreased 7 basis points compared with fourth quarter 2008.
First Quarter Noninterest Income and Noninterest Expense
For first quarter 2009, noninterest income was $175 million, down $21 million, or 11 percent, from the same quarter a year ago, primarily due to a $14.2 million pre-tax gain on the partial redemption of Visa Inc. common stock recorded in first quarter 2008. First quarter 2009 noninterest income decreased $4 million, or 2.4 percent, compared with fourth quarter 2008.
Noninterest expense for first quarter 2009 was $521 million, an increase of $118 million, or 29.3 percent, compared with first quarter 2008. The increase was primarily due to expenses related to the privatization transaction of $69 million, primarily classified in privatization-related expense and intangible asset amortization expense; an increase in regulatory agencies expense of $15 million, primarily due to an industry-wide increase in the FDIC assessment rate, effective January 1, 2009; and an increase in the provision for losses on off-balance sheet commitments of $18 million. Salaries and other compensation expense decreased $4 million compared with first quarter 2008, primarily due to lower accruals for performance-related incentive expense.
Noninterest expense for first quarter 2009 decreased $109 million, or 17.3 percent, compared with fourth quarter 2008. The decrease was primarily due to a $59 million decrease in expenses associated with the privatization transaction, primarily classified in privatization-related expense and intangible asset amortization expense; and a $41 million decrease in other noninterest expense, primarily due to lawsuit settlements recorded in fourth quarter 2008. Regulatory agencies expense increased $10 million, primarily due to higher FDIC deposit insurance assessments. The provision for off-balance sheet losses increased $12 million, compared with fourth quarter 2008.
Balance Sheet
At March 31, 2009, the Company had total assets of $68.7 billion, up $10.8 billion, or 19 percent, compared with March 31, 2008. Total loans were $49.4 billion, up $5.9 billion, or 14 percent, compared with March 31, 2008. At March 31, 2009, the Company had goodwill and intangibles of $3.0 billion, up $2.7 billion compared with March 31, 2008, due to the privatization transaction, which closed during fourth quarter 2008.
At March 31, 2009, the Company had total liabilities of $61.3 billion, up $8.0 billion, or 15 percent, compared with March 31, 2008. Total deposits were $48.9 billion, up $3.6 billion, or 8 percent. Core deposits at period-end were $41.6 billion, resulting in a core deposit-to-loan ratio of 84 percent.
Credit Quality
Nonperforming assets at March 31, 2009, were $835 million, or 1.21 percent of total assets. This compares with $436 million, or 0.62 percent of total assets, at December 31, 2008, and $132 million, or 0.23 percent of total assets, at March 31, 2008. The increase in nonperforming assets was primarily due to higher levels of nonaccrual loans in all categories, reflecting weak economic conditions, and a previously-disclosed change in accounting policy for residential and home equity loans 90 days or more past due, which accounted for $120 million of the increase versus both year-end and one year earlier.
For first quarter 2009, the total provision for credit losses was $275 million and net loans charged-off were $116 million, or 0.95 percent annualized of average total loans. For fourth quarter 2008, the total provision for credit losses was $245 million and net loans charged-off were $65 million, or 0.52 percent annualized of average total loans. For first quarter 2008, the total provision for credit losses was $80 million and net loans charged-off were $12 million, or 0.11 percent annualized of average total loans.
Net loans charged-off in first quarter 2009 were concentrated in the commercial, financial and industrial portfolio. Net loans charged-off in the construction portfolio were only $1 million, and net loans charged-off in the residential mortgage portfolio were only $10 million.
The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In first quarter 2009, the provision for loan losses was $249 million, the provision for losses on off-balance sheet commitments was $26 million, and the total provision for credit losses was $275 million.
At March 31, 2009, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 2.07 percent and 126 percent, respectively.
Capital and Liquidity
Total stockholder’s equity was $7.5 billion at March 31, 2009, up $2.8 billion compared with March 31, 2008, primarily due to a $2 billion increase in goodwill related to the privatization transaction, and a $1 billion capital contribution from BTMU in fourth quarter 2008. The Company’s tangible common equity ratio increased to 7.12 percent at March 31, 2009, compared to 6.96 percent at December 31, 2008. The Company’s Tier I and total risk-based capital ratios at March 31, 2009, were 8.53 percent and 11.35 percent, respectively.
The Company maintains diverse sources of wholesale funding capacity and a solid core deposit base, which has resulted in healthy liquidity. Wholesale funding declined to $12.6 billion at March 31, 2009, compared to $17 billion at December 31, 2008, primarily due to a $3.9 billion increase in period-end core deposits. The Company also maintains significant sources of contingent liquidity through the Federal Home Loan Bank and Federal Reserve Bank.
Non-GAAP Financial Measures
This press release contains certain references to financial measures identified as excluding privatization transaction expenses, which are adjustments from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP in that they exclude unusual or non-recurring charges, losses, credits or gains. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Because these items are unusual and substantial costs incurred in the fourth quarter of 2008 and first quarter of 2009, management believes that financial presentations excluding the impact of these items provide useful supplemental information which is important to a proper understanding of the Company’s core business results. 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.
Forward-Looking Statements
The following appears in accordance with the Private Securities Litigation Reform Act. This press release includes forward-looking statements that involve risks and uncertainties.
Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include the words “believe,” ”continue,” “expect,” “target,” “anticipate,” “intend,” “plan,” “estimate,” “potential,” “project,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” They may also consist of annualized amounts based on historical interim period results. Forward-looking statements in this press release include those related to the Company’s intentions regarding and resources for funding.
There are numerous risks and uncertainties that could and will cause actual results to differ materially from those discussed in the Company’s forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict and could have a material adverse effect on the Company’s financial condition, and results of operations or prospects. Such risks and uncertainties include, but are not limited to, further declines or disruptions in the financial markets which may adversely affect the Company or the Company’s borrowers or other customers; continued or worsening adverse economic conditions in the United States; continued or worsening adverse economic and fiscal conditions in California; increased energy costs; global political and general economic conditions related to the war on terrorism and other hostilities; fluctuations in interest rates; the ownership interest in UnionBanCal Corporation by BTMU, which is a wholly-owned subsidiary of MUFG; competition in the banking and financial services industries; deposit pricing pressures; the levels of commercial and residential real estate activity in our market; adverse effects of current and future banking laws, rules and regulations and their enforcement; effects of governmental fiscal or monetary policies; legal or regulatory proceedings or investigations; changes in accounting practices or requirements; and risks associated with various strategies the Company may pursue, including potential acquisitions, divestitures and restructurings. A complete description of the Company, including related risk factors, is discussed in the Company’s public filings with the Securities and Exchange Commission, which are available online at http://www.sec.gov. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $68.7 billion at March 31, 2009. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. Union Bank is California's fifth largest bank by deposits. The bank has 335 banking offices in California, Oregon and Washington, and two international offices. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. (NYSE: MTU). Visit www.unionbank.com for more information.
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||
Financial Highlights (Unaudited) | ||||||||||||||||||
Exhibit 1 | ||||||||||||||||||
Percent Change to | ||||||||||||||||||
As of and for the Three Months Ended | March 31, 2009 from | |||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | ||||||||||||||
(Dollars in thousands) | 2008 | 2008(1) |
| 2009(1) |
| 2008 | 2008 | |||||||||||
Results of operations: | ||||||||||||||||||
Net interest income (2) | $ | 463,104 | $ | 562,373 | $ | 562,620 | 21.49 | % | 0.04 | % | ||||||||
Noninterest income | 195,396 | 178,913 | 174,716 | (10.58 | %) | (2.35 | %) | |||||||||||
Total revenue | 658,500 | 741,286 | 737,336 | 11.97 | % | (0.53 | %) | |||||||||||
Noninterest expense | 403,206 | 630,366 | 521,383 | 29.31 | % | (17.29 | %) | |||||||||||
Provision for loan losses | 72,000 | 231,000 | 249,000 | nm | 7.79 | % | ||||||||||||
Income (loss) from continuing operations before income taxes (2) | ||||||||||||||||||
183,294 | (120,080 | ) | (33,047 | ) | nm | 72.48 | % | |||||||||||
Taxable-equivalent adjustment | 2,526 | 2,407 | 2,617 | 3.60 | % | 8.72 | % | |||||||||||
Income tax expense (benefit) | 58,370 | (39,625 | ) | (25,856 | ) | nm | 34.75 | % | ||||||||||
Income (loss) from continuing operations | 122,398 | (82,862 | ) | (9,808 | ) | nm | 88.16 | % | ||||||||||
Loss from discontinued operations | (13,808 | ) | (3,018 | ) | - | (100.00 | %) | (100.00 | %) | |||||||||
Net income (loss) | $ | 108,590 | $ | (85,880 | ) | $ | (9,808 | ) | nm | 88.58 | % | |||||||
Balance sheet (end of period): | ||||||||||||||||||
Total assets (3) | $ | 57,933,325 | $ | 70,121,390 | $ | 68,725,270 | 18.63 | % | (1.99 | %) | ||||||||
Total loans | 43,499,968 | 49,585,550 | 49,441,063 | 13.66 | % | (0.29 | %) | |||||||||||
Nonperforming assets | 131,687 | 436,515 | 834,738 | nm | 91.23 | % | ||||||||||||
Total deposits | 45,240,821 | 46,049,769 | 48,878,733 | 8.04 | % | 6.14 | % | |||||||||||
Medium- and long-term debt | 1,963,952 | 4,288,488 | 5,140,931 | nm | 19.88 | % | ||||||||||||
Stockholder's equity | 4,713,206 | 7,484,305 | 7,475,472 | 58.61 | % | (0.12 | %) | |||||||||||
Balance sheet (period average): | ||||||||||||||||||
Total assets | $ | 56,632,995 | $ | 66,521,518 | $ | 67,072,499 | 18.43 | % | 0.83 | % | ||||||||
Total loans | 42,701,453 | 49,012,819 | 49,789,046 | 16.60 | % | 1.58 | % | |||||||||||
Earning assets | 52,188,085 | 58,137,210 | 59,626,207 | 14.25 | % | 2.56 | % | |||||||||||
Total deposits | 43,613,754 | 44,060,607 | 46,633,173 | 6.92 | % | 5.84 | % | |||||||||||
Stockholder's equity | 4,718,409 | 6,748,937 | 7,336,212 | 55.48 | % | 8.70 | % | |||||||||||
Financial ratios (4): | ||||||||||||||||||
Return on average assets (5): | ||||||||||||||||||
From continuing operations | 0.87 | % | (0.50 | %) | (0.06 | %) | ||||||||||||
Net income (loss) | 0.77 | % | (0.51 | %) | (0.06 | %) | ||||||||||||
Return on average stockholder's equity (5): | ||||||||||||||||||
From continuing operations | 10.43 | % | (4.88 | %) | (0.54 | %) | ||||||||||||
Net income (loss) | 9.26 | % | (5.06 | %) | (0.54 | %) | ||||||||||||
Efficiency ratio (6) | 58.61 | % | 81.58 | % | 65.69 | % | ||||||||||||
Net interest margin (2) | 3.55 | % | 3.86 | % | 3.79 | % | ||||||||||||
Tangible common equity ratio (7) | 7.42 | % | 6.96 | % | 7.12 | % | ||||||||||||
Tier 1 risk-based capital ratio (3) (8) | 8.07 | % | 8.78 | % | 8.53 | % | ||||||||||||
Total risk-based capital ratio (3) (8) | 10.97 | % | 11.63 | % | 11.35 | % | ||||||||||||
Leverage ratio (3) (8) | 8.09 | % | 8.42 | % | 8.40 | % | ||||||||||||
Allowance for loan losses to: | ||||||||||||||||||
Total loans | 1.06 | % | 1.49 | % | 1.76 | % | ||||||||||||
Nonaccrual loans | 367.17 | % | 177.79 | % | 107.41 | % | ||||||||||||
Allowances for credit losses to (9) : | ||||||||||||||||||
Total loans | 1.29 | % | 1.74 | % | 2.07 | % | ||||||||||||
Nonaccrual loans | 445.20 | % | 208.01 | % | 126.10 | % | ||||||||||||
Net loans charged off to average | ||||||||||||||||||
total loans (5) | 0.11 | % | 0.52 | % | 0.95 | % | ||||||||||||
Nonperforming assets to total loans and | ||||||||||||||||||
foreclosed assets | 0.30 | % | 0.88 | % | 1.69 | % | ||||||||||||
Nonperforming assets to total assets (3) | 0.23 | % | 0.62 | % | 1.21 | % | ||||||||||||
Selected financial ratios excluding impact of privatization transaction (1) (4) (14): | ||||||||||||||||||
From continuing operations: | ||||||||||||||||||
Return on average assets | 0.87 | % | (0.04 | %) | 0.07 | % | ||||||||||||
Return on average stockholder's equity | 10.43 | % | (0.54 | %) | 0.91 | % | ||||||||||||
Efficiency ratio (6) | 58.61 | % | 65.30 | % | 59.08 | % | ||||||||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||
(Taxable-Equivalent Basis) | ||||||||||||||
Exhibit 2 | ||||||||||||||
For the Three Months Ended | ||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
(Amounts in thousands) | 2008 | 2008(1) |
| 2009(1) |
| |||||||||
Interest Income (2) | ||||||||||||||
Loans | $ | 633,362 | $ | 667,373 | $ | 604,067 | ||||||||
Securities | 106,045 | 112,422 | 103,281 | |||||||||||
Interest bearing deposits in banks | 128 | 71 | 900 | |||||||||||
Federal funds sold and securities purchased under resale agreements | 2,693 | 899 | 141 | |||||||||||
Trading account assets | 2,804 | 527 | 158 | |||||||||||
Total interest income | 745,032 | 781,292 | 708,547 | |||||||||||
Interest Expense | ||||||||||||||
Deposits | 220,660 | 138,142 | 105,038 | |||||||||||
Federal funds purchased and securities sold under repurchase agreements | 15,715 | 3,473 | 53 | |||||||||||
Commercial paper | 9,792 | 5,640 | 1,592 | |||||||||||
Medium- and long-term debt | 19,457 | 34,291 | 27,529 | |||||||||||
Trust notes | 238 | 238 | 238 | |||||||||||
Other borrowed funds | 16,066 | 37,135 | 11,477 | |||||||||||
Total interest expense | 281,928 | 218,919 | 145,927 | |||||||||||
Net Interest Income (2) | 463,104 | 562,373 | 562,620 | |||||||||||
Provision for loan losses | 72,000 | 231,000 | 249,000 | |||||||||||
Net interest income after provision for loan losses | 391,104 | 331,373 | 313,620 | |||||||||||
Noninterest Income | ||||||||||||||
Service charges on deposit accounts | 74,736 | 73,444 | 71,322 | |||||||||||
Trust and investment management fees | 43,388 | 37,427 | 33,907 | |||||||||||
Trading account activities | 11,012 | 14,434 | 22,692 | |||||||||||
Merchant banking fees | 11,793 | 13,879 | 13,832 | |||||||||||
Brokerage commissions and fees | 9,859 | 8,877 | 8,307 | |||||||||||
Card processing fees, net | 7,764 | 7,493 | 7,536 | |||||||||||
Securities losses, net | (2 | ) | (4 | ) | - | |||||||||
Other | 36,846 | 23,363 | 17,120 | |||||||||||
Total noninterest income | 195,396 | 178,913 | 174,716 | |||||||||||
Noninterest Expense | ||||||||||||||
Salaries and employee benefits | 241,670 | 254,983 | 243,563 | |||||||||||
Net occupancy | 36,202 | 41,558 | 41,921 | |||||||||||
Intangible asset amortization | 670 | 42,924 | 40,887 | |||||||||||
Outside services | 17,009 | 20,888 | 18,834 | |||||||||||
Regulatory agencies | 2,609 | 7,895 | 17,938 | |||||||||||
Professional services | 14,597 | 23,122 | 15,938 | |||||||||||
Equipment | 15,347 | 16,646 | 15,413 | |||||||||||
Software | 14,795 | 16,432 | 15,038 | |||||||||||
Foreclosed asset expense | 89 | 323 | 886 | |||||||||||
Provision for losses on off-balance sheet commitments | 8,000 | 14,000 | 26,000 | |||||||||||
Privatization-related expense | - | 84,312 | 26,819 | |||||||||||
Other | 52,218 | 107,283 | 58,146 | |||||||||||
Total noninterest expense | 403,206 | 630,366 | 521,383 | |||||||||||
Income (loss) from continuing operations before income taxes (2) | 183,294 | (120,080 | ) | (33,047 | ) | |||||||||
Taxable-equivalent adjustment | 2,526 | 2,407 | 2,617 | |||||||||||
Income tax expense (benefit) | 58,370 | (39,625 | ) | (25,856 | ) | |||||||||
Income (Loss) from Continuing Operations | 122,398 | (82,862 | ) | (9,808 | ) | |||||||||
Loss from discontinued operations before income taxes | (17,585 | ) | (4,676 | ) | - | |||||||||
Income tax benefit | (3,777 | ) | (1,658 | ) | - | |||||||||
Loss from Discontinued Operations | (13,808 | ) | (3,018 | ) | - | |||||||||
Net Income (Loss) | $ | 108,590 | $ | (85,880 | ) | $ | (9,808 | ) | ||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries Consolidated Balance Sheet Exhibit 3 | ||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
(Dollars in thousands) | 2008 | 2008(1) |
| 2009(1) |
| |||||||||
Assets | ||||||||||||||
Cash and due from banks | $ | 2,071,969 | $ | 1,568,578 | $ | 1,388,279 | ||||||||
Interest bearing deposits in banks | 999 | 2,872,698 | 2,445,861 | |||||||||||
Federal funds sold and securities purchased under resale agreements | 125,940 | 63,069 | 110,083 | |||||||||||
Total cash and cash equivalents | 2,198,908 | 4,504,345 | 3,944,223 | |||||||||||
Trading account assets: | ||||||||||||||
Pledged as collateral | - | 6,283 | 8,295 | |||||||||||
Held in portfolio | 811,509 | 1,210,496 | 1,149,832 | |||||||||||
Securities available for sale: | ||||||||||||||
Pledged as collateral | 642,346 | 54,525 | 43,374 | |||||||||||
Held in portfolio | 7,667,959 | 8,140,013 | 7,506,069 | |||||||||||
Securities held to maturity (fair value: March 31, 2009, $959,137) | - | - | 1,150,342 | |||||||||||
Loans (net of allowance for loan losses: March 31, 2008, $462,943; December 31, 2008, $737,767; March 31, 2009, $870,185) | 43,037,025 | 48,847,783 | 48,570,878 | |||||||||||
Due from customers on acceptances | 15,984 | 23,131 | 15,077 | |||||||||||
Premises and equipment, net | 486,469 | 680,004 | 670,376 | |||||||||||
Intangible assets, net | 5,788 | 713,485 | 672,568 | |||||||||||
Goodwill | 355,287 | 2,369,326 | 2,369,326 | |||||||||||
Other assets | 2,610,131 | 3,571,995 | 2,624,910 | |||||||||||
Assets of discontinued operations to be disposed or sold | 101,919 | 4 | - | |||||||||||
Total assets | $ | 57,933,325 | $ | 70,121,390 | $ | 68,725,270 | ||||||||
Liabilities | ||||||||||||||
Noninterest bearing | $ | 13,997,843 | $ | 13,566,873 | $ | 13,543,015 | ||||||||
Interest bearing | 31,242,978 | 32,482,896 | 35,335,718 | |||||||||||
Total deposits | 45,240,821 | 46,049,769 | 48,878,733 | |||||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,785,044 | 172,758 | 320,376 | |||||||||||
Commercial paper | 1,299,930 | 1,164,327 | 749,381 | |||||||||||
Other borrowed funds | 921,516 | 8,196,597 | 3,861,905 | |||||||||||
Trading account liabilities | 629,166 | 1,034,663 | 965,105 | |||||||||||
Acceptances outstanding | 15,984 | 23,131 | 15,077 | |||||||||||
Other liabilities | 1,214,214 | 1,685,412 | 1,304,423 | |||||||||||
Medium- and long-term debt | 1,963,952 | 4,288,488 | 5,140,931 | |||||||||||
Junior subordinated debt payable to subsidiary grantor trust | 14,319 | 13,980 | 13,867 | |||||||||||
Liabilities of discontinued operations to be extinguished or assumed | 135,173 | 7,960 | - | |||||||||||
Total liabilities | 53,220,119 | 62,637,085 | 61,249,798 | |||||||||||
Stockholder's Equity | ||||||||||||||
Preferred stock: | ||||||||||||||
Authorized 5,000,000 shares; no shares issued or outstanding as of March 31, 2008, December 31, 2008 and March 31, 2009 | - | - | - | |||||||||||
Common stock, par value $1 per share: | ||||||||||||||
Authorized 300,000,000 shares; issued 157,670,426 shares as of March 31, 2008, 136,330,829 shares as of December 31, 2008 and 136,330,829 shares as of March 31, 2009
| 157,670 | 136,331 | 136,331 | |||||||||||
Additional paid-in capital | 1,167,391 | 3,195,023 | 3,195,023 | |||||||||||
Treasury stock - 19,725,529 shares as of March 31, 2008, no shares as of December 31, 2008 and March 31, 2009 | (1,202,685 | ) | - | - | ||||||||||
Retained earnings | 4,949,040 | 4,964,802 | 4,954,994 | |||||||||||
Accumulated other comprehensive loss | (358,210 | ) | (811,851 | ) | (810,876 | ) | ||||||||
Total stockholder's equity | 4,713,206 | 7,484,305 | 7,475,472 | |||||||||||
Total liabilities and stockholder's equity | $ | 57,933,325 | $ | 70,121,390 | $ | 68,725,270 | ||||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||
Loans (Unaudited) | |||||||||||||||||||||||||
Exhibit 4 | |||||||||||||||||||||||||
Percent Change to | |||||||||||||||||||||||||
Three Months Ended | March 31, 2009 from | ||||||||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | |||||||||||||||||||||
(Dollars in millions) | 2008 | 2008(1) | 2009(1) | 2008 | 2008 | ||||||||||||||||||||
Loans (period average) | |||||||||||||||||||||||||
Commercial, financial and industrial | $ | 15,569 | $ | 18,297 | $ | 18,498 | 18.81 | % | 1.10 | % | |||||||||||||||
Construction | 2,474 | 2,686 | 2,734 | 10.49 | % | 1.77 | % | ||||||||||||||||||
Mortgage - Commercial | 7,251 | 8,087 | 8,253 | 13.82 | % | 2.06 | % | ||||||||||||||||||
Mortgage - Residential | 13,988 | 15,698 | 15,919 | 13.81 | % | 1.41 | % | ||||||||||||||||||
Consumer | 2,686 | 3,589 | 3,722 | 38.58 | % | 3.72 | % | ||||||||||||||||||
Lease financing | 650 | 649 | 653 | 0.41 | % | 0.61 | % | ||||||||||||||||||
Total loans held to maturity | 42,618 | 49,005 | 49,779 | 16.80 | % | 1.58 | % | ||||||||||||||||||
Total loans held for sale | 83 | 8 | 10 | (87.82 | %) | 26.35 | % | ||||||||||||||||||
Total loans | $ | 42,701 | $ | 49,013 | $ | 49,789 | 16.60 | % | 1.58 | % | |||||||||||||||
Nonperforming Assets (period end) | |||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||
Commercial, financial and industrial | $ | 47 | $ | 260 | $ | 347 | nm | 33.46 | % | ||||||||||||||||
Construction | 55 | 99 | 218 | nm | nm | ||||||||||||||||||||
Mortgage - Commercial | 24 | 56 | 125 | nm | nm | ||||||||||||||||||||
Mortgage - Residential | - | - | 102 | nm | nm | ||||||||||||||||||||
Consumer and other | - | - | 18 | nm | nm | ||||||||||||||||||||
Total nonaccrual loans | 126 | 415 | 810 | nm | 95.18 | % | |||||||||||||||||||
Restructured loans: | |||||||||||||||||||||||||
Mortgage - Residential | 1 | 1 | 3 | nm | nm | ||||||||||||||||||||
Foreclosed assets | 5 | 20 | 22 | nm | 10.00 | % | |||||||||||||||||||
Total nonperforming assets | $ | 132 | $ | 436 | 835 | nm | 91.51 | % | |||||||||||||||||
Loans 90 days or more past due and still accruing | $ | 30 | $ | 71 | 24 | (20.00 | %) | (66.20 | %) | ||||||||||||||||
Analysis of Allowances for Credit Losses | |||||||||||||||||||||||||
Beginning balance | $ | 403 | $ | 581 | $ | 738 | |||||||||||||||||||
Provision for loan losses | 72 | 231 | 249 | ||||||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||||
Commercial, financial and industrial | (10 | ) | (49 | ) | (96 | ) | |||||||||||||||||||
Construction | - | (7 | ) | (2 | ) | ||||||||||||||||||||
Mortgage - Residential | - | (3 | ) | (10 | ) | ||||||||||||||||||||
Consumer | (3 | ) | (8 | ) | (10 | ) | |||||||||||||||||||
Total loans charged off | (13 | ) | (67 | ) | (118 | ) | |||||||||||||||||||
Loans recovered: | |||||||||||||||||||||||||
Commercial, financial and industrial | 1 | 1 | 1 | ||||||||||||||||||||||
Construction | - | 1 | 1 | ||||||||||||||||||||||
Total loans recovered | 1 | 2 | 2 | ||||||||||||||||||||||
Net loans recovered (charged off) | (12 | ) | (65 | ) | (116 | ) | |||||||||||||||||||
Adjustment for impaired loans related to privatization | - | (8 | ) | (1 | ) | ||||||||||||||||||||
Foreign translation adjustment | - | (1 | ) | - | |||||||||||||||||||||
Ending balance of allowance for loan losses | 463 | 738 | 870 | ||||||||||||||||||||||
Allowance for off-balance sheet commitment losses | 98 | 125 | 151 | ||||||||||||||||||||||
Allowances for credit losses | $ | 561 | $ | 863 | $ | 1,021 | |||||||||||||||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||
Exhibit 5 | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
3/31/2008 | 3/31/2009(1) |
| ||||||||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(Dollars in thousands) | Balance | Expense(2) | Rate(2)(5) | Balance | Expense(2) | Rate(2)(5) | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Loans (10) | ||||||||||||||||||||||||
Commercial, financial and industrial | $ | 15,647,162 | $ | 238,303 | 6.13 | % | $ | 18,503,965 | $ | 193,787 | 4.25 | % | ||||||||||||
Construction | 2,474,323 | 36,617 | 5.95 | 2,733,630 | 19,261 | 2.86 | ||||||||||||||||||
Mortgage - Residential | 13,992,743 | 192,785 | 5.51 | 15,923,191 | 234,438 | 5.89 | ||||||||||||||||||
Mortgage - Commercial | 7,250,747 | 112,970 | 6.23 | 8,253,324 | 102,389 | 4.96 | ||||||||||||||||||
Consumer | 2,686,635 | 46,390 | 6.94 | 3,722,252 | 46,539 | 5.07 | ||||||||||||||||||
Lease financing | 649,843 | 6,297 | 3.88 | 652,684 | 7,653 | 4.69 | ||||||||||||||||||
Total loans | 42,701,453 | 633,362 | 5.95 | 49,789,046 | 604,067 | 4.88 | ||||||||||||||||||
Securities - taxable | 8,355,943 | 104,963 | 5.02 | 8,319,754 | 102,256 | 4.92 | ||||||||||||||||||
Securities - tax-exempt | 53,359 | 1,082 | 8.11 | 50,417 | 1,025 | 8.13 | ||||||||||||||||||
Interest bearing deposits in banks (11) | 29,869 | 128 | 1.72 | 4,220 | 900 | 0.48 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 328,145 | 2,693 | 3.30 | 196,567 | 141 | 0.29 | ||||||||||||||||||
Trading account assets | 719,316 | 2,804 | 1.57 | 1,266,203 | 158 | 0.05 | ||||||||||||||||||
Total earning assets | 52,188,085 | 745,032 | 5.72 | 59,626,207 | 708,547 | 4.78 | ||||||||||||||||||
Allowance for loan losses | (399,280 | ) | (708,736 | ) | ||||||||||||||||||||
Cash and due from banks (11) | 1,757,362 | 2,142,198 | ||||||||||||||||||||||
Premises and equipment, net | 483,815 | 674,021 | ||||||||||||||||||||||
Other assets | 2,603,013 | 5,338,809 | ||||||||||||||||||||||
Total assets | $ | 56,632,995 | $ | 67,072,499 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 14,864,561 | 82,915 | 2.24 | $ | 22,497,062 | 61,097 | 1.10 | ||||||||||||||||
Savings and consumer time | 4,179,663 | 23,529 | 2.26 | 4,367,945 | 15,939 | 1.48 | ||||||||||||||||||
Large time | 11,962,678 | 114,216 | 3.84 | 7,232,767 | 28,002 | 1.57 | ||||||||||||||||||
Total interest bearing deposits | 31,006,902 | 220,660 | 2.86 | 34,097,774 | 105,038 | 1.25 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,950,692 | 15,566 | 3.21 | 251,946 | 53 | 0.09 | ||||||||||||||||||
Net funding allocated from (to) discontinued operations (12) | 16,992 | 149 | 3.53 | - | - | - | ||||||||||||||||||
Commercial paper | 1,207,510 | 9,792 | 3.26 | 721,416 | 1,592 | 0.89 | ||||||||||||||||||
Other borrowed funds (13) | 1,566,297 | 16,066 | 4.13 | 5,083,086 | 11,477 | 0.92 | ||||||||||||||||||
Medium and long-term debt | 1,846,885 | 19,457 | 4.24 | 4,743,352 | 27,529 | 2.35 | ||||||||||||||||||
Trust notes | 14,374 | 238 | 6.63 | 13,922 | 238 | 6.84 | ||||||||||||||||||
Total borrowed funds | 6,602,750 | 61,268 | 3.73 | 10,813,722 | 40,889 | 1.53 | ||||||||||||||||||
Total interest bearing liabilities | 37,609,652 | 281,928 | 3.01 | 44,911,496 | 145,927 | 1.32 | ||||||||||||||||||
Noninterest bearing deposits | 12,606,852 | 12,535,399 | ||||||||||||||||||||||
Other liabilities | 1,698,082 | 2,289,392 | ||||||||||||||||||||||
Total liabilities | 51,914,586 | 59,736,287 | ||||||||||||||||||||||
Stockholder's Equity | ||||||||||||||||||||||||
Common equity | 4,718,409 | 7,336,212 | ||||||||||||||||||||||
Total stockholder's equity | 4,718,409 | 7,336,212 | ||||||||||||||||||||||
| ||||||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 56,632,995 | $ | 67,072,499 | ||||||||||||||||||||
Reported Net Interest Income/Margin | ||||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 463,104 | 3.55 | % | 562,620 | 3.79 | % | ||||||||||||||||||
Less: taxable-equivalent adjustment | 2,526 | 2,617 | ||||||||||||||||||||||
Net interest income | $ | 460,578 | $ | 560,003 | ||||||||||||||||||||
Average Assets and Liabilities of Discontinued Operations for Period Ended: | ||||||||||||||||||||||||
March 31, 2008 | March 31, 2009 | |||||||||||||||||||||||
Assets | $ | 123,169 | $ | - | ||||||||||||||||||||
Liabilities | $ | 140,161 | $ | - | ||||||||||||||||||||
Net Liabilities | $ | (16,992 | ) | $ | - | |||||||||||||||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||
Net Interest Income (Unaudited) | |||||||||||||||||||||||
Exhibit 6 | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
12/31/2008(1) | 3/31/2009(1) | ||||||||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense(2) | Rate(2)(5) | Balance | Expense(2) | Rate(2)(5) | |||||||||||||||||
Assets |
| ||||||||||||||||||||||
Loans: (10) | |||||||||||||||||||||||
Commercial, financial and industrial | $ | 18,300,686 | $ | 239,664 | 5.21 | % | $ | 18,503,965 | $ | 193,787 | 4.25 | % | |||||||||||
Construction | 2,686,102 | 32,259 | 4.78 | 2,733,630 | 19,261 | 2.86 | |||||||||||||||||
Mortgage - Residential | 15,701,726 | 226,053 | 5.76 | 15,923,191 | 234,438 | 5.89 | |||||||||||||||||
Mortgage - Commercial | 8,086,680 | 111,154 | 5.50 | 8,253,324 | 102,389 | 4.96 | |||||||||||||||||
Consumer | 3,588,873 | 53,231 | 5.90 | 3,722,252 | 46,539 | 5.07 | |||||||||||||||||
Lease financing | 648,752 | 5,012 | 3.09 | 652,684 | 7,653 | 4.69 | |||||||||||||||||
Total loans | 49,012,819 | 667,373 | 5.43 | 49,789,046 | 604,067 | 4.88 | |||||||||||||||||
Securities - taxable | 7,927,236 | 111,370 | 5.62 | 8,319,754 | 102,256 | 4.92 | |||||||||||||||||
Securities - tax-exempt | 52,118 | 1,052 | 8.07 | 50,417 | 1,025 | 8.13 | |||||||||||||||||
Interest bearing deposits in banks (11) | 6,764 | 71 | 4.20 | 4,220 | 900 | 0.48 | |||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 122,640 | 899 | 2.92 | 196,567 | 141 | 0.29 | |||||||||||||||||
Trading account assets | 1,015,633 | 527 | 0.21 | 1,266,203 | 158 | 0.05 | |||||||||||||||||
Total earning assets | 58,137,210 | 781,292 | 5.36 | 59,626,207 | 708,547 | 4.78 | |||||||||||||||||
Allowance for loan losses | (551,627 | ) | (708,736 | ) | |||||||||||||||||||
Cash and due from banks (11) | 2,775,154 | 2,142,198 | |||||||||||||||||||||
Premises and equipment, net | 668,628 | 674,021 | |||||||||||||||||||||
Other assets | 5,492,153 | 5,338,809 | |||||||||||||||||||||
Total assets | $ | 66,521,518 | $ | 67,072,499 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Transaction accounts | $ | 18,277,265 | 71,731 | 1.56 | $ | 22,497,062 | 61,097 | 1.10 | |||||||||||||||
Savings and consumer time | 4,185,219 | 15,591 | 1.48 | 4,367,945 | 15,939 | 1.48 | |||||||||||||||||
Large time | 8,718,514 | 50,820 | 2.32 | 7,232,767 | 28,002 | 1.57 | |||||||||||||||||
Total interest bearing deposits | 31,180,998 | 138,142 | 1.76 | 34,097,774 | 105,038 | 1.25 | |||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,183,014 | 3,437 | 1.16 | 251,946 | 53 | 0.09 | |||||||||||||||||
Net funding allocated from (to) discontinued operations (12) | 9,149 | 36 | 1.57 | - | - | - | |||||||||||||||||
Commercial paper | 1,151,296 | 5,640 | 1.95 | 721,416 | 1,592 | 0.89 | |||||||||||||||||
Other borrowed funds (13) | 7,496,938 | 37,135 | 1.97 | 5,083,086 | 11,477 | 0.92 | |||||||||||||||||
Medium and long-term debt | 3,871,749 | 34,291 | 3.52 | 4,743,352 | 27,529 | 2.35 | |||||||||||||||||
Trust notes | 14,035 | 238 | 6.79 | 13,922 | 238 | 6.84 | |||||||||||||||||
Total borrowed funds | 13,726,181 | 80,777 | 2.34 | 10,813,722 | 40,889 | 1.53 | |||||||||||||||||
Total interest bearing liabilities | 44,907,179 | 218,919 | 1.94 | 44,911,496 | 145,927 | 1.32 | |||||||||||||||||
Noninterest bearing deposits | 12,879,609 | 12,535,399 | |||||||||||||||||||||
Other liabilities | 1,985,793 | 2,289,392 | |||||||||||||||||||||
Total liabilities | 59,772,581 | 59,736,287 | |||||||||||||||||||||
Stockholder's Equity | |||||||||||||||||||||||
Common equity | 6,748,937 | 7,336,212 | |||||||||||||||||||||
Total stockholder's equity | 6,748,937 | 7,336,212 | |||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 66,521,518 | $ | 67,072,499 | |||||||||||||||||||
Reported Net Interest Income/Margin | |||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 562,373 | 3.86 | % | 562,620 | 3.79 | % | |||||||||||||||||
Less: taxable-equivalent adjustment | 2,407 | 2,617 | |||||||||||||||||||||
Net interest income | $ | 559,966 | $ | 560,003 | |||||||||||||||||||
Average Assets and Liabilities of Discontinued Operations for Period Ended: | |||||||||||||||||||||||
December 31, | March 31, | ||||||||||||||||||||||
Assets | $ | 755 | $ | - | |||||||||||||||||||
Liabilities | $ | 9,904 | $ | - | |||||||||||||||||||
Net Liabilities | $ | (9,149 | ) | $ | - | ||||||||||||||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||
Noninterest income (Unaudited) | ||||||||||||||||||||||
Exhibit 7 | ||||||||||||||||||||||
Percentage Change to | ||||||||||||||||||||||
For the Three Months Ended | March 31, 2009 from | |||||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | ||||||||||||||||||
(Dollars in thousands) | 2008 | 2008(1) |
| 2009(1) |
| 2008 | 2008 | |||||||||||||||
Service charges on deposit accounts | $ | 74,736 | $ | 73,444 | $ | 71,322 | (4.57 | ) | % | (2.89 | ) | % | ||||||||||
Trust and investment management fees | 43,388 | 37,427 | 33,907 | (21.85 | ) | (9.41 | ) | |||||||||||||||
Trading account activities | 11,012 | 14,434 | 22,692 | nm | 57.21 | |||||||||||||||||
Merchant banking fees | 11,793 | 13,879 | 13,832 | 17.29 | (0.34 | ) | ||||||||||||||||
Brokerage commissions and fees | 9,859 | 8,877 | 8,307 | (15.74 | ) | (6.42 | ) | |||||||||||||||
Card processing fees, net | 7,764 | 7,493 | 7,536 | (2.94 | ) | 0.57 | ||||||||||||||||
Securities losses, net | (2 | ) | (4 | ) | - | (100.00 | ) | (100.00 | ) | |||||||||||||
Gains (losses) on private capital investments, net | 1,070 | 3,750 | (2,121 | ) | nm | nm | ||||||||||||||||
Gain on the VISA IPO redemption | 14,211 | - | - | (100.00 | ) | 0.00 | ||||||||||||||||
Other | 21,565 | 19,613 | 19,241 | (10.78 | ) | (1.90 | ) | |||||||||||||||
Total noninterest income | $ | 195,396 | $ | 178,913 | $ | 174,716 | (10.58 | ) | % | (2.35 | ) | % | ||||||||||
Noninterest expense (Unaudited) | ||||||||||||||||||||||
Percentage Change to | ||||||||||||||||||||||
For the Three Months Ended | March 31, 2009 from | |||||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | ||||||||||||||||||
(Dollars in thousands) | 2008 | 2008(1) |
| 2009(1) |
| 2008 | 2008 | |||||||||||||||
Salaries and other compensation | $ | 192,011 | $ | 209,800 | $ | 188,223 | (1.97 | ) | % | (10.28 | ) | % | ||||||||||
Employee benefits | 49,659 | 45,183 | 55,340 | 11.44 | 22.48 | |||||||||||||||||
Salaries and employee benefits | 241,670 | 254,983 | 243,563 | 0.78 | (4.48 | ) | ||||||||||||||||
Net occupancy | 36,202 | 41,558 | 41,921 | 15.80 | 0.87 | |||||||||||||||||
Intangible asset amortization | 670 | 42,924 | 40,887 | nm | (4.75 | ) | ||||||||||||||||
Outside services | 17,009 | 20,888 | 18,834 | 10.73 | (9.83 | ) | ||||||||||||||||
Regulatory agencies | 2,609 | 7,895 | 17,938 | nm | nm | |||||||||||||||||
Professional services | 14,597 | 23,122 | 15,938 | 9.19 | (31.07 | ) | ||||||||||||||||
Equipment | 15,347 | 16,646 | 15,413 | 0.43 | (7.41 | ) | ||||||||||||||||
Software | 14,795 | 16,432 | 15,038 | 1.64 | (8.48 | ) | ||||||||||||||||
Advertising and public relations | 8,099 | 17,565 | 10,621 | 31.14 | (39.53 | ) | ||||||||||||||||
Low income housing credit investment amortization | 9,139 | 11,330 | 10,166 | 11.24 | (10.27 | ) | ||||||||||||||||
Communications | 9,375 | 9,377 | 8,718 | (7.01 | ) | (7.03 | ) | |||||||||||||||
Data processing | 7,076 | 8,285 | 8,575 | 21.18 | 3.50 | |||||||||||||||||
Foreclosed asset expense | 89 | 323 | 886 | nm | nm | |||||||||||||||||
Provision for losses on off-balance sheet commitments | 8,000 | 14,000 | 26,000 | nm | 85.71 | |||||||||||||||||
Privatization-related expense | - | 84,312 | 26,819 | nm | (68.19 | ) | ||||||||||||||||
Other | 18,529 | 60,726 | 20,066 | 8.30 | (66.96 | ) | ||||||||||||||||
Total noninterest expense | $ | 403,206 | $ | 630,366 | $ | 521,383 | 29.31 | % | (17.29 | ) | % | |||||||||||
Refer to Exhibit 9 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||
Exhibit 8 | |||||
The following table presents a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts GAAP and specific non-measures as used to complete selected non-GAAP financial ratios. | |||||
| |||||
For the three months ended | |||||
(Dollars in thousands) | December 31, 2008 | March 31, 2009 | |||
Income (loss) from continuing operations | $ (82,862) | $ (9,808) | |||
Privatization-related expense, net of tax | 57,498 | 16,360 | |||
Net accretion and amortization related to fair value adjustments, net of tax | 19,474 | 4,518 | |||
Income (loss) from continuing operations, excluding impact of privatization transaction | $ (5,890) | $ 11,070 | |||
Average total assets | $ 66,521,518 | $ 67,072,499 | |||
Net asset and liability fair value adjustments | 2,659,315 | 2,621,275 | |||
Average total assets, excluding impact of privatization transaction | $ 63,862,203 | $ 64,451,224 | |||
Return on average assets from continuing operations | (0.50%) | (0.06%) | |||
Effect of privatization transaction | 0.46% | 0.13% | |||
Return on average assets from continuing operations, excluding impact of privatization transaction | (0.04%) | 0.07% | |||
Average stockholder's equity | $ 6,748,937 | $ 7,336,212 | |||
Net adjustments related to privatization transaction | 2,397,011 | 2,416,165 | |||
Average stockholder's equity, excluding impact of privatization transaction | $ 4,351,926 | $ 4,920,047 | |||
Return on stockholder's equity from continuing operations | (4.88%) | (0.54%) | |||
Effect of privatization transaction | 4.34% | 1.45% | |||
Return on stockholder's equity, excluding impact of privatization transaction | (0.54%) | 0.91% | |||
Noninterest expense | $ 630,366 | $ 521,383 | |||
Privatization-related expense | 84,312 | 26,819 | |||
Amortization related to fair value adjustments | 44,373 | 42,542 | |||
Noninterest expense, excluding impact of privatization transaction | $ 501,681 | $ 452,022 | |||
Total revenue | $ 741,286 | $ 737,336 | |||
Accretion related to fair value adjustments | 12,354 | 34,977 | |||
Total revenue, excluding impact of privatization transaction | $ 728,932 | $ 702,359 | |||
Efficiency ratio | 81.58% | 65.69% | |||
Effect of privatization transaction | (16.28%) | (6.61%) | |||
Efficiency ratio, excluding impact of privatization transaction | 65.30% | 59.08% |
UnionBanCal Corporation and Subsidiaries | |||
Footnotes | |||
Exhibit 9 | |||
(1) | On November 4, 2008, Mitsubishi UFJ Financial Group, Inc. (MUFG), through its wholly-owned subsidiary, The Bank of Tokyo - Mitsubishi UFJ, Ltd. (BTMU), completed its acquisition of all of the remaining outstanding shares of UnionBanCal Corporation (the Company) common stock (the “privatization transaction”). The Company estimated the fair value of its tangible assets and liabilities as of October 1, 2008 and recorded fair value adjustments to its tangible assets and liabilities equivalent to the proportionate incremental percentage ownership acquired by BTMU in the privatization transaction. In addition, the Company recorded goodwill and other intangible assets. The Company’s financial condition as of December 31, 2008 and subsequently reflect the impact of these fair value adjustments and other amounts recorded. The Company’s results of operations for the fourth quarter of 2008 and the first quarter of 2009 include accretion and amortization related to the fair value adjustments. | ||
(2) | Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent. | ||
(3) | End of period total assets and assets used in calculating these ratios include those of discontinued operations. | ||
(4) | Average balances used to calculate our financial ratios are based on continuing operations data only, unless otherwise indicated. | ||
(5) | Annualized. | ||
(6) | The efficiency ratio is noninterest expense, excluding foreclosed asset expense (income), the provision for losses on off-balance sheet commitments and low income housing credit (LIHC) investment amortization expense, as a percentage of net interest income (taxable-equivalent basis) and noninterest income, and is calculated for continuing operations only. | ||
(7) | The tangible common equity ratio is the ratio of total equity less intangibles (net of the corresponding deferred tax liability), as a percentage of total assets, less intangibles. | ||
(8) | The regulatory capital and leverage ratios include discontinued operations. | ||
(9) | The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments. These ratios relate to continuing operations only. | ||
(10) | Average balances on loans outstanding include all nonperforming loans and loans held for sale. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield. | ||
(11) | For the three months ended March 31, 2009, the computation of the average yield on Interest Bearing Deposits in Banks excludes interest income earned on interest bearing Federal Reserve Bank deposits, as the average balances of these deposits are reported in Cash and Due from Banks. | ||
(12) | Net funding allocated from (to) discontinued operations represents the shortage (excess) of assets over liabilities of discontinued operations. The expense (earning) on funds allocated from (to) discontinued operations is calculated by taking the net balance and applying an earnings rate or a cost of funds equivalent to the corresponding period's Federal funds purchased rate. | ||
(13) | Includes interest bearing trading liabilities. | ||
(14) | These ratios exclude the impact of the privatization transaction. Please refer to Exhibit 8 for a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and these non-GAAP measures. | ||
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CONTACT:
UnionBanCal Corporation
Stephen L. Johnson, 415-765-3252 (Public Relations)
Michelle R. Crandall, 415-765-2780 (Investor Relations)