Exhibit 99.1
UnionBanCal Corporation Reports Fourth Quarter Net Income of $42 Million
Fourth Quarter Highlights:
- Fourth quarter net income was $42 million. Results included after-tax net expenses of $14 million related to the November 2008 privatization of UnionBanCal Corporation.
- Fourth quarter revenue was up 3 percent year-over-year and up 2 percent compared with third quarter 2009.
- Fourth quarter net interest income was up 3 percent year-over-year and up 3 percent compared with third quarter 2009.
- Fourth quarter average total loans decreased 2 percent year-over-year and decreased 2 percent versus third quarter 2009.
- Fourth quarter average core deposits were up 64 percent year-over-year and up 11 percent versus third quarter 2009.
- Fourth quarter net interest margin was 3.06 percent, down 80 basis points year-over-year and down 25 basis points versus third quarter 2009.
- Fourth quarter annualized average all-in cost of funds was 0.72 percent, compared with 1.51 percent in fourth quarter 2008 and 0.79 percent in third quarter 2009.
- Fourth quarter asset quality metrics:
- Total provision for credit losses was $195 million, while net loans charged-off were $95 million, or 0.79 percent annualized, of average total loans.
- Net loans charged-off on the $16.7 billion residential mortgage portfolio were $11 million, or 0.26 percent annualized, in fourth quarter 2009.
- Nonperforming assets were $1.3 billion, or 1.58 percent of total assets, at quarter-end.
- Allowance for credit losses to nonaccrual loans was 116 percent at quarter-end. Allowance for credit losses to total loans was 3.25 percent at quarter-end.
- Capital:
- Total stockholder’s equity was $9.6 billion at December 31, 2009.
- Tangible common equity ratio was 8.29 percent at December 31, 2009, versus 8.94 percent at September 30, 2009.
- Tier 1 common capital ratio was 11.80 percent at December 31, 2009, versus 11.58 percent at September 30, 2009.
- Tier 1 risk-based capital ratio was 11.82 percent at December 31, 2009, versus 11.60 percent at September 30, 2009.
Full Year Highlights
- Total revenue was up 5 percent compared with 2008.
- Net interest income increased 10 percent, while noninterest income decreased 6 percent.
- Average total loans were up 6 percent compared with 2008.
- Average total deposits were up 31 percent compared with 2008.
SAN FRANCISCO--(BUSINESS WIRE)--January 28, 2010--UnionBanCal Corporation (the Company or UB) today reported fourth quarter 2009 net income of $42 million, compared with net loss of $86 million a year earlier, and net loss of $17 million in third quarter 2009. Total provision for credit losses was $195 million in fourth quarter 2009, compared with $245 million a year earlier, and $320 million in third quarter 2009. Fourth quarter 2009 net income included after-tax net expenses of $14 million due to the privatization transaction. Fourth quarter 2008 net loss included after-tax net expenses of $77 million due to the privatization transaction. Third quarter 2009 net loss included after-tax net expenses of $11 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.
For full year 2009, net loss was $65 million, compared with net income of $269 million for full year 2008. Total provision for credit losses was $1,165 million for full year 2009, compared with $550 million for full year 2008. Net loss for full year 2009 included after-tax net expenses of $59 million due to the privatization transaction and a one-time FDIC assessment of $21 million (after-tax). Net income for full year 2008 included after-tax net expenses of $83 million due to the privatization transaction.
Summary of Fourth Quarter Results
Fourth Quarter Total Revenue
For fourth quarter 2009, total revenue (taxable-equivalent net interest income plus noninterest income) was $766 million, up 3 percent compared with fourth quarter 2008. Net interest income increased 3 percent and noninterest income increased 4 percent. Fourth quarter 2009 net interest income included $23 million of accretion related to fair value adjustments due to the privatization transaction, compared with $12 million for fourth quarter 2008. Average total loans decreased $1.1 billion, or 2 percent; average interest bearing deposits increased $19.7 billion, or 63 percent; and average noninterest bearing deposits increased $1.9 billion, or 15 percent. The strong growth in total deposits reflects successful deposit-gathering marketing initiatives in both the retail and commercial lines of business, as well as significant increases in money market account deposits from institutional custody and escrow clients. The net interest margin in fourth quarter 2009 was 3.06 percent, a decrease of 80 basis points compared with fourth quarter 2008, primarily due to a substantial increase in lower yielding assets, particularly interest bearing deposits in banks and available for sale securities, as deposit growth far outpaced loan growth.
Average noninterest bearing deposits represented 22.5 percent of average total deposits in fourth quarter 2009, compared with 29.2 percent in fourth quarter 2008. The annualized average all-in cost of funds was 0.72 percent, compared with 1.51 percent in fourth quarter 2008. The Company’s average core deposit-to-loan ratio was 120.8 percent in fourth quarter 2009, compared with 72.1 percent in fourth quarter 2008.
Compared with third quarter 2009, total revenue increased 2 percent, with net interest income up 3 percent and noninterest income flat. Average total loans decreased $0.9 billion, or 2 percent; average interest bearing deposits increased $5.9 billion, or 13 percent; and average noninterest bearing deposits increased $0.3 billion, or 2 percent. The net interest margin decreased 25 basis points compared with third quarter 2009.
Fourth Quarter Noninterest Income and Noninterest Expense
For fourth quarter 2009, noninterest income was $185 million, up $6 million, or 4 percent, from the same quarter a year ago. Trust and investment management fees decreased $5 million, primarily due to lower yields on mutual fund assets. Fees from trading account activities increased $10 million, primarily due to higher trading activity and lower provisions for losses on derivatives. Securities gains (losses), net, increased $12 million, primarily due to a gain on the sale of securities in fourth quarter 2009. Gains (losses) on private capital investments, net, decreased $13 million, primarily due to impairment charges on investments recorded in fourth quarter 2009.
Noninterest income was flat compared with third quarter 2009. Fees from trading account activities increased $14 million, primarily due to lower provisions for losses on derivatives. Gains (losses) on private capital investments, net, decreased $10 million, primarily due to impairment charges on investments recorded in fourth quarter 2009. Gains on the sale of securities of approximately the same magnitude were recorded in both periods.
Noninterest expense for fourth quarter 2009 was $529 million, a decrease of $101 million, or 16 percent, compared with fourth quarter 2008. The decrease was primarily due to lower expenses related to the privatization transaction of $84 million, primarily classified in privatization-related expense and intangible asset amortization expense. Other noninterest expense decreased $37 million, primarily due to legal settlement costs recorded in fourth quarter 2008. Offsetting these decreases was higher regulatory agencies expense of $24 million, which increased primarily due to an industry-wide increase in the FDIC assessment rate, effective January 1, 2009, and an increase in insured deposits. The provision for off-balance sheet losses was $4 million, down $10 million compared with fourth quarter 2008.
Noninterest expense for fourth quarter 2009 increased $23 million, or 5 percent, compared with third quarter 2009. Salaries and employee benefits expense increased $27 million, or 12 percent, primarily due to higher accruals for incentive compensation. Net occupancy expense decreased $4 million, or 10 percent, primarily due to a one-time adjustment for accrual of rent expense recorded in fourth quarter 2009. The provision for off-balance sheet losses decreased $2 million compared with third quarter 2009.
Full Year Results
For full year 2009, net loss was $65 million, compared with net income of $269 million for full year 2008. The decline in net income was primarily due to an increase in total provision for credit losses of $373 million after-tax and an increase in regulatory agencies expense of $67 million after-tax, which included a one-time FDIC assessment of $21 million after-tax, partially offset by a decrease in net expenses related to the privatization transaction of $24 million after-tax.
Total revenue for full year 2009 was $3.0 billion, an increase of $154 million, or 5 percent, over full year 2008. Net interest income increased $200 million, or 10 percent, and noninterest income decreased $46 million, or 6 percent. Net interest income for full year 2009 included $108 million of accretion related to fair value adjustments due to the privatization transaction. Noninterest expense increased $192 million, or 10 percent, primarily due to a $78 million increase in expense related to the privatization transaction, primarily classified in privatization-related expense and intangible asset amortization expense. In addition, regulatory agencies expense increased $110 million, primarily due to a one-time FDIC assessment of $34 million, recorded in second quarter 2009, an industry-wide increase in the FDIC assessment rate, effective January 1, 2009, and an increase in insured deposits, bringing total FDIC-related expense to $126 million for full year 2009. The provision for off-balance sheet losses was $51 million for full year 2009, compared with $35 million for full year 2008.
Balance Sheet
At December 31, 2009, the Company had total assets of $86 billion, up $15.5 billion, or 22 percent, compared with December 31, 2008. Total loans were $47.2 billion, down $2.4 billion, or 5 percent, compared with December 31, 2008. Securities available for sale were $22.6 billion, up $14.4 billion, or 175 percent, as deposit growth far outpaced loan growth.
At December 31, 2009, the Company had total liabilities of $76 billion, up $13.4 billion, or 21 percent, compared with December 31, 2008. Total deposits were $68.5 billion, up $22.5 billion, or 49 percent. Core deposits at period-end were $61 billion, resulting in a core deposit-to-loan ratio of 129 percent.
Credit Quality
Nonperforming assets at December 31, 2009, were $1.35 billion, or 1.58 percent of total assets. This compares with $1.37 billion, or 1.75 percent of total assets, at September 30, 2009, and $437 million, or 0.62 percent of total assets, at December 31, 2008. The increase in nonperforming assets compared with December 31, 2008, 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 $225 million of the increase. Higher levels of nonaccrual loans in the commercial mortgage and residential mortgage categories were offset by lower levels of nonaccrual loans in the commercial, financial and industrial and construction categories.
For fourth quarter 2009, the total provision for credit losses was $195 million, down from $320 million for third quarter 2009. Net loans charged-off were $95 million, or 0.79 percent annualized, of average total loans, down from $136 million, or 1.11 percent annualized, of average total loans for third quarter 2009. 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 full year 2009, the total provision for credit losses was $1.2 billion and net loans charged-off were $499 million, or 1.02 percent annualized, of average total loans.
For full year 2009, net loans charged-off on the commercial, financial and industrial portfolio were $277 million; net loans charged-off on the construction portfolio were $68 million; net loans charged-off on the commercial mortgage portfolio were $73 million; and net loans charged-off on the consumer portfolio were $41 million. Net loans charged-off on the residential mortgage portfolio, which averaged over $16 billion outstanding for the full year, were $40 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 fourth quarter 2009, the provision for loan losses was $191 million, the provision for losses on off-balance sheet commitments was $4 million, and the total provision for credit losses was $195 million. For full year 2009, the provision for loan losses was $1,114 million, the provision for losses on off-balance sheet commitments was $51 million, and the total provision for credit losses was $1,165 million.
At December 31, 2009, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 3.25 percent and 116 percent, respectively. Since January 1, 2009, the allowance for credit losses has increased from $863 million to $1,533 million, as total provision for credit losses has exceeded net loans charged-off by $666 million during the year.
Capital
Total stockholder’s equity was $9.6 billion at December 31, 2009, and tangible common equity was $6.9 billion. The Company’s tangible common equity ratio was 8.29 percent at December 31, 2009, compared with 8.94 percent at September 30, 2009. The Tier 1 common capital ratio at December 31, 2009, was 11.80 percent, compared with 11.58 percent at September 30, 2009. The Company’s Tier 1 and total risk-based capital ratios at December 31, 2009, were 11.82 percent and 14.54 percent, respectively.
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, 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.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $86 billion at December 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. The bank has 340 banking offices in California, Oregon, Washington and Texas 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. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG) (NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||
Financial Highlights (Unaudited) | ||||||||||||||||||
Exhibit 1 | ||||||||||||||||||
| Percent Change to | |||||||||||||||||
As of and for the Three Months Ended | December 31, 2009 from | |||||||||||||||||
December 31, | September 30, | December 31, | December 31, | September 30, | ||||||||||||||
(Dollars in thousands) | 2008 (1) | 2009 (1) | 2009 (1) | 2008 | 2009 | |||||||||||||
Results of operations: | ||||||||||||||||||
Net interest income (2) | $ | 562,373 | $ | 564,296 | $ | 580,412 | 3.21 | % | 2.86 | % | ||||||||
Noninterest income | 178,913 | 183,929 | 185,286 | 3.56 | % | 0.74 | % | |||||||||||
Total revenue | 741,286 | 748,225 | 765,698 | 3.29 | % | 2.34 | % | |||||||||||
Noninterest expense | 630,366 | 505,815 | 529,245 | (16.04 | %) | 4.63 | % | |||||||||||
Provision for loan losses | 231,000 | 314,000 | 191,000 | (17.32 | %) | (39.17 | %) | |||||||||||
Income (loss) from continuing operations | ||||||||||||||||||
before income taxes (2) | (120,080 | ) | (71,590 | ) | 45,453 | nm | nm | |||||||||||
Taxable-equivalent adjustment | 2,407 | 3,260 | 2,685 | 11.55 | % | (17.64 | %) | |||||||||||
Income tax expense (benefit) | (39,625 | ) | (57,821 | ) | 885 | nm | nm | |||||||||||
Income (loss) from continuing operations | (82,862 | ) | (17,029 | ) | 41,883 | nm | nm | |||||||||||
Loss from discontinued operations | (3,018 | ) | - | - | (100.00 | %) | - | |||||||||||
Net income (loss) | $ | (85,880 | ) | $ | (17,029 | ) | $ | 41,883 | nm | nm | ||||||||
Balance sheet (end of period): | ||||||||||||||||||
Total assets (3) | $ | 70,121,390 | $ | 78,153,207 | $ | 85,598,128 | 22.07 | % | 9.53 | % | ||||||||
Total loans | 49,585,550 | 48,169,508 | 47,228,508 | (4.75 | %) | (1.95 | %) | |||||||||||
Nonperforming assets | 436,515 | 1,367,691 | 1,349,793 | nm | (1.31 | %) | ||||||||||||
Total deposits | 46,049,769 | 60,691,368 | 68,517,653 | 48.79 | % | 12.90 | % | |||||||||||
Medium- and long-term debt | 4,288,488 | 5,121,553 | 4,212,184 | (1.78 | %) | (17.76 | %) | |||||||||||
Stockholder's equity | 7,484,305 | 9,475,004 | 9,580,333 | 28.01 | % | 1.11 | % | |||||||||||
Balance sheet (period average): | ||||||||||||||||||
Total assets | $ | 66,521,518 | $ | 74,352,649 | $ | 81,964,956 | 23.22 | % | 10.24 | % | ||||||||
Total loans | 49,012,819 | 48,764,826 | 47,871,715 | (2.33 | %) | (1.83 | %) | |||||||||||
Earning assets | 58,137,210 | 68,235,083 | 75,800,728 | 30.38 | % | 11.09 | % | |||||||||||
Total deposits | 44,060,607 | 59,453,936 | 65,697,920 | 49.11 | % | 10.50 | % | |||||||||||
Stockholder's equity | 6,748,937 | 7,358,773 | 9,405,635 | 39.36 | % | 27.82 | % | |||||||||||
Financial ratios (4): | ||||||||||||||||||
Return on average assets (5): | ||||||||||||||||||
From continuing operations | (0.50 | %) | (0.09 | %) | 0.20 | % | ||||||||||||
Net income (loss) | (0.51 | %) | (0.09 | %) | 0.20 | % | ||||||||||||
Return on average stockholder's equity (5): | ||||||||||||||||||
From continuing operations | (4.88 | %) | (0.92 | %) | 1.77 | % | ||||||||||||
Net income (loss) | (5.06 | %) | (0.92 | %) | 1.77 | % | ||||||||||||
Efficiency ratio (6) | 81.58 | % | 65.07 | % | 66.36 | % | ||||||||||||
Net interest margin (2) | 3.86 | % | 3.31 | % | 3.06 | % | ||||||||||||
Tangible common equity ratio (7) | 6.96 | % | 8.94 | % | 8.29 | % | ||||||||||||
Tier 1 common capital ratio (8)(9) | 8.76 | % | 11.58 | % | 11.80 | % | ||||||||||||
Tier 1 risk-based capital ratio (3) (9) | 8.78 | % | 11.60 | % | 11.82 | % | ||||||||||||
Total risk-based capital ratio (3) (9) | 11.63 | % | 14.42 | % | 14.54 | % | ||||||||||||
Leverage ratio (3) (9) | 8.42 | % | 10.39 | % | 9.45 | % | ||||||||||||
Allowance for loan losses to: | ||||||||||||||||||
Total loans | 1.49 | % | 2.62 | % | 2.87 | % | ||||||||||||
Nonaccrual loans | 177.79 | % | 95.15 | % | 103.03 | % | ||||||||||||
Allowances for credit losses to (10): | ||||||||||||||||||
Total loans | 1.74 | % | 2.97 | % | 3.25 | % | ||||||||||||
Nonaccrual loans | 208.01 | % | 108.16 | % | 116.42 | % | ||||||||||||
Net loans charged off to average total loans (5) | 0.52 | % | 1.11 | % | 0.79 | % | ||||||||||||
Nonperforming assets to total loans, foreclosed assets and distressed loans held for sale | 0.88 | % | 2.84 | % | 2.86 | % | ||||||||||||
Nonperforming assets to total assets (3) | 0.62 | % | 1.75 | % | 1.58 | % | ||||||||||||
Selected financial ratios excluding impact of privatization transaction (4) (15): | ||||||||||||||||||
From continuing operations: | ||||||||||||||||||
Return on average assets (5) | (0.04 | %) | (0.03 | %) | 0.28 | % | ||||||||||||
Return on average stockholder's equity (5) | (0.54 | %) | (0.45 | %) | 3.15 | % | ||||||||||||
Efficiency ratio (6) | 65.30 | % | 60.36 | % | 62.29 | % | ||||||||||||
Refer to Exhibit 12 for footnote explanations. | ||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||
Financial Highlights (Unaudited) | ||||||||||||
Exhibit 2 | ||||||||||||
Percent Change to | ||||||||||||
As of and for the Twelve Months Ended | December 31, 2009 from | |||||||||||
December 31, | December 31, | December 31, | ||||||||||
(Dollars in thousands, except per share data) | 2008 (1) | 2009 (1) | 2008 | |||||||||
Results of operations: | ||||||||||||
Net interest income (2) | $ | 2,060,660 | $ | 2,260,422 | 9.69 | % | ||||||
Noninterest income | 772,656 | 727,144 | (5.89 | %) | ||||||||
Total revenue | 2,833,316 | 2,987,566 | 5.44 | % | ||||||||
Noninterest expense | 1,896,696 | 2,088,501 | 10.11 | % | ||||||||
Provision for loan losses | 515,000 | 1,114,000 | nm | |||||||||
Income (loss) from continuing operations before income taxes (2) | 421,620 | (214,935 | ) | nm | ||||||||
Taxable-equivalent adjustment | 9,812 | 11,310 | 15.27 | % | ||||||||
Income tax expense (benefit) | 127,868 | (161,284 | ) | nm | ||||||||
Income (loss) from continuing operations | 283,940 | (64,961 | ) | nm | ||||||||
Loss from discontinued operations | (15,055 | ) | - | (100.00 | %) | |||||||
Net income (loss) | $ | 268,885 | $ | (64,961 | ) | nm | ||||||
Balance sheet (end of period): | ||||||||||||
Total assets (3) | $ | 70,121,390 | $ | 85,598,128 | 22.07 | % | ||||||
Total loans | 49,585,550 | 47,228,508 | (4.75 | %) | ||||||||
Nonperforming assets | 436,515 | 1,349,793 | nm | |||||||||
Total deposits | 46,049,769 | 68,517,653 | 48.79 | % | ||||||||
Medium- and long-term debt | 4,288,488 | 4,212,184 | (1.78 | %) | ||||||||
Stockholder's equity | 7,484,305 | 9,580,333 | 28.01 | % | ||||||||
Balance sheet (period average): | ||||||||||||
Total assets | $ | 60,908,355 | $ | 73,766,090 | 21.11 | % | ||||||
Total loans | 46,112,105 | 48,989,567 | 6.24 | % | ||||||||
Earning assets | 55,556,063 | 67,418,580 | 21.35 | % | ||||||||
Total deposits | 43,133,196 | 56,594,591 | 31.21 | % | ||||||||
Stockholder's equity | 5,170,795 | 7,855,190 | 51.91 | % | ||||||||
Financial ratios (4): | ||||||||||||
Return on average assets (5): | ||||||||||||
From continuing operations | 0.47 | % | (0.09 | %) | ||||||||
Net income (loss) | 0.44 | % | (0.09 | %) | ||||||||
Return on average stockholder's equity (5): | ||||||||||||
From continuing operations | 5.49 | % | (0.83 | %) | ||||||||
Net income (loss) | 5.20 | % | (0.83 | %) | ||||||||
Efficiency ratio (6) | 64.24 | % | 66.34 | % | ||||||||
Net interest margin (2) | 3.71 | % | 3.35 | % | ||||||||
Tangible common equity ratio (7) | 6.96 | % | 8.29 | % | ||||||||
Tier 1 common capital ratio (8) (9) | 8.76 | % | 11.80 | % | ||||||||
Tier 1 risk-based capital ratio (3) (9) | 8.78 | % | 11.82 | % | ||||||||
Total risk-based capital ratio (3) (9) | 11.63 | % | 14.54 | % | ||||||||
Leverage ratio (3) (9) | 8.42 | % | 9.45 | % | ||||||||
Allowance for loan losses to: | ||||||||||||
Total loans | 1.49 | % | 2.87 | % | ||||||||
Nonaccrual loans | 177.79 | % | 103.03 | % | ||||||||
Allowances for credit losses to (10) : | ||||||||||||
Total loans | 1.74 | % | 3.25 | % | ||||||||
Nonaccrual loans | 208.01 | % | 116.42 | % | ||||||||
Net loans charged off to average total loans (5) | 0.37 | % | 1.02 | % | ||||||||
Nonperforming assets to total loans, foreclosed assets and distressed loans held for sale | 0.88 | % | 2.86 | % | ||||||||
Nonperforming assets to total assets (3) | 0.62 | % | 1.58 | % | ||||||||
Selected financial ratios excluding impact of privatization transaction (4) (15): | ||||||||||||
From continuing operations: | ||||||||||||
Return on average assets (5) | 0.61 | % | (0.01 | %) | ||||||||
Return on average stockholder's equity (5) | 8.04 | % | (0.11 | %) | ||||||||
Efficiency ratio (6) | 59.74 | % | 61.44 | % | ||||||||
Refer to Exhibit 12 for footnote explanations. | ||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||
(Taxable-Equivalent Basis) | |||||||||||||||||||||||
Exhibit 3 | |||||||||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||||||||
(Amounts in thousands) | 2008 (1) | 2009 (1) | 2009 (1) | 2008 (1) | 2009 (1) | ||||||||||||||||||
Interest Income (2) | |||||||||||||||||||||||
Loans | $ | 667,373 | $ | 578,514 | $ | 559,350 | $ | 2,557,105 | $ | 2,328,821 | |||||||||||||
Securities | 112,422 | 110,170 | 144,982 | 417,464 | 457,187 | ||||||||||||||||||
Interest bearing deposits in banks | 71 | 4,956 | 4,043 | 574 | 13,449 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 899 | 110 | 23 | 6,472 | 371 | ||||||||||||||||||
Trading account assets | 527 | 271 | 434 | 5,814 | 1,094 | ||||||||||||||||||
Total interest income | 781,292 | 694,021 | 708,832 | 2,987,429 | 2,800,922 | ||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Deposits | 138,142 | 101,374 | 101,703 | 639,047 | 408,301 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 3,473 | 41 | 24 | 47,875 | 137 | ||||||||||||||||||
Commercial paper | 5,640 | 355 | 194 | 31,767 | 3,095 | ||||||||||||||||||
Other borrowed funds | 37,135 | 604 | 613 | 107,698 | 18,310 | ||||||||||||||||||
Medium- and long-term debt | 34,291 | 27,112 | 25,648 | 99,429 | 109,704 | ||||||||||||||||||
Trust notes | 238 | 239 | 238 | 953 | 953 | ||||||||||||||||||
Total interest expense | 218,919 | 129,725 | 128,420 | 926,769 | 540,500 | ||||||||||||||||||
Net Interest Income (2) | 562,373 | 564,296 | 580,412 | 2,060,660 | 2,260,422 | ||||||||||||||||||
Provision for loan losses | 231,000 | 314,000 | 191,000 | 515,000 | 1,114,000 | ||||||||||||||||||
Net interest income after provision for loan losses | 331,373 | 250,296 | 389,412 | 1,545,660 | 1,146,422 | ||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||
Service charges on deposit accounts | 73,444 | 74,888 | 72,711 | 302,965 | 290,764 | ||||||||||||||||||
Trust and investment management fees | 37,427 | 34,506 | 32,454 | 165,255 | 134,997 | ||||||||||||||||||
Trading account activities | 14,434 | 10,513 | 24,134 | 54,530 | 73,590 | ||||||||||||||||||
Merchant banking fees | 13,879 | 14,601 | 16,295 | 49,546 | 64,652 | ||||||||||||||||||
Brokerage commissions and fees | 8,877 | 8,611 | 8,160 | 38,891 | 33,584 | ||||||||||||||||||
Card processing fees, net | 7,493 | 8,559 | 8,293 | 31,553 | 32,512 | ||||||||||||||||||
Securities gains (losses), net | (4 | ) | 12,694 | 11,759 | 44 | 24,281 | |||||||||||||||||
Other | 23,363 | 19,557 | 11,480 | 129,872 | 72,764 | ||||||||||||||||||
Total noninterest income | 178,913 | 183,929 | 185,286 | 772,656 | 727,144 | ||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||
Salaries and employee benefits | 254,983 | 233,981 | 261,055 | 978,081 | 971,656 | ||||||||||||||||||
Net occupancy | 41,558 | 43,146 | 38,793 | 154,566 | 167,082 | ||||||||||||||||||
Intangible asset amortization | 42,924 | 40,641 | 40,101 | 44,935 | 161,910 | ||||||||||||||||||
Regulatory agencies | 7,893 | 30,739 | 32,103 | 23,971 | 133,616 | ||||||||||||||||||
Outside services | 20,888 | 22,219 | 25,288 | 78,933 | 89,289 | ||||||||||||||||||
Professional services | 23,122 | 17,647 | 16,981 | 70,886 | 70,055 | ||||||||||||||||||
Equipment | 16,646 | 17,838 | 16,383 | 61,571 | 66,236 | ||||||||||||||||||
Software | 16,432 | 16,502 | 17,205 | 60,448 | 62,950 | ||||||||||||||||||
Foreclosed asset expense (income) | 323 | (144 | ) | 2,315 | 1,019 | 6,339 | |||||||||||||||||
Provision for losses on off-balance sheet commitments | 14,000 | 6,000 | 4,000 | 35,000 | 51,000 | ||||||||||||||||||
Privatization-related expense | 84,312 | 6,649 | 4,981 | 90,505 | 45,882 | ||||||||||||||||||
Other | 107,285 | 70,597 | 70,040 | 296,781 | 262,486 | ||||||||||||||||||
Total noninterest expense | 630,366 | 505,815 | 529,245 | 1,896,696 | 2,088,501 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes (2) | (120,080 | ) | (71,590 | ) | 45,453 | 421,620 | (214,935 | ) | |||||||||||||||
Taxable-equivalent adjustment | 2,407 | 3,260 | 2,685 | 9,812 | 11,310 | ||||||||||||||||||
Income tax expense (benefit) | (39,625 | ) | (57,821 | ) | 885 | 127,868 | (161,284 | ) | |||||||||||||||
Income (Loss) from Continuing Operations | (82,862 | ) | (17,029 | ) | 41,883 | 283,940 | (64,961 | ) | |||||||||||||||
Loss from discontinued operations before income taxes | (4,676 | ) | - | - | (27,368 | ) | - | ||||||||||||||||
Income tax benefit | (1,658 | ) | - | - | (12,313 | ) | - | ||||||||||||||||
Loss from Discontinued Operations | (3,018 | ) | - | - | (15,055 | ) | - | ||||||||||||||||
Net Income (Loss) | $ | (85,880 | ) | $ | (17,029 | ) | $ | 41,883 | $ | 268,885 | $ | (64,961 | ) | ||||||||||
Refer to Exhibit 12 for footnote explanations. | |||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||
Consolidated Balance Sheets | |||||||||||
Exhibit 4 | |||||||||||
(Unaudited) | |||||||||||
December 31, | December 31, | ||||||||||
(Dollars in thousands) | 2008 (1) | 2009 (1) | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 1,568,578 | $ | 1,198,258 | |||||||
Interest bearing deposits in banks | 2,872,698 | 6,585,029 | |||||||||
Federal funds sold and securities purchased under resale agreements | 63,069 | 442,552 | |||||||||
Total cash and cash equivalents | 4,504,345 | 8,225,839 | |||||||||
Trading account assets: | |||||||||||
Pledged as collateral | 6,283 | 15,168 | |||||||||
Held in portfolio | 1,210,496 | 710,480 | |||||||||
Securities available for sale: | |||||||||||
Pledged as collateral | 54,525 | 2,500 | |||||||||
Held in portfolio | 8,140,013 | 22,556,329 | |||||||||
Securities held to maturity (Fair value: 2009, $1,457,558) | - | 1,227,718 | |||||||||
Loans (net of allowance for credit losses: 2008, $737,767; 2009, $1,357,000) | 48,847,783 | 45,871,508 | |||||||||
Due from customers on acceptances | 23,131 | 8,514 | |||||||||
Premises and equipment, net | 680,004 | 674,298 | |||||||||
Intangible assets, net | 713,485 | 561,040 | |||||||||
Goodwill | 2,369,326 | 2,369,326 | |||||||||
Other assets | 3,571,995 | 3,375,408 | |||||||||
Assets of discontinued operations to be disposed or sold | 4 | - | |||||||||
Total assets | $ | 70,121,390 | $ | 85,598,128 | |||||||
Liabilities | |||||||||||
Noninterest bearing | $ | 13,566,873 | $ | 14,558,989 | |||||||
Interest bearing | 32,482,896 | 53,958,664 | |||||||||
Total deposits | 46,049,769 | 68,517,653 | |||||||||
Federal funds purchased and securities sold under repurchase agreements | 172,758 | 150,453 | |||||||||
Commercial paper | 1,164,327 | 888,541 | |||||||||
Other borrowed funds | 8,196,597 | 591,934 | |||||||||
Trading account liabilities | 1,034,663 | 538,894 | |||||||||
Acceptances outstanding | 23,131 | 8,514 | |||||||||
Other liabilities | 1,685,412 | 1,096,095 | |||||||||
Medium- and long-term debt | 4,288,488 | 4,212,184 | |||||||||
Junior subordinated debt payable to subsidiary grantor trust | 13,980 | 13,527 | |||||||||
Liabilities of discontinued operations to be extinguished or assumed | 7,960 | - | |||||||||
Total liabilities | 62,637,085 | 76,017,795 | |||||||||
Stockholder's Equity | |||||||||||
Preferred stock: | |||||||||||
Authorized 5,000,000 shares, no shares issued or outstanding at December 31, 2008 and 2009 | - | - | |||||||||
Common stock, par value $1 per share: | |||||||||||
Authorized 300,000,000 shares, issued 136,330,829 shares in 2008 and 2009 | 136,331 | 136,331 | |||||||||
Additional paid-in capital | 3,195,023 | 5,195,023 | |||||||||
Retained earnings | 4,964,802 | 4,899,841 | |||||||||
Accumulated other comprehensive loss | (811,851 | ) | (650,862 | ) | |||||||
Total stockholder's equity | 7,484,305 | 9,580,333 | |||||||||
Total liabilities and stockholder's equity | $ | 70,121,390 | $ | 85,598,128 | |||||||
Refer to Exhibit 12 for footnote explanations. | |||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||||
Loans and Allowance for Credit Losses (Unaudited) | ||||||||||||||||||||||||||
Exhibit 5 | ||||||||||||||||||||||||||
Percent Change to | ||||||||||||||||||||||||||
Three Months Ended | December 31, 2009 from | |||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | September 30, | ||||||||||||||||||||||
(Dollars in millions) | 2008 (1) | 2009 (1) | 2009 (1) | 2008 (1) | 2009 | |||||||||||||||||||||
Loans (period average) | ||||||||||||||||||||||||||
Commercial, financial and industrial | $ | 18,297 | $ | 16,804 | $ | 15,761 | (13.86 | %) | (6.21 | %) | ||||||||||||||||
Construction | 2,686 | 2,773 | 2,591 | (3.54 | %) | (6.56 | %) | |||||||||||||||||||
Mortgage - Commercial | 8,087 | 8,261 | 8,268 | 2.24 | % | 0.08 | % | |||||||||||||||||||
Mortgage - Residential | 15,698 | 16,372 | 16,670 | 6.19 | % | 1.82 | % | |||||||||||||||||||
Consumer | 3,589 | 3,883 | 3,912 | 9.00 | % | 0.75 | % | |||||||||||||||||||
Lease financing | 648 | 662 | 664 | 2.47 | % | 0.30 | % | |||||||||||||||||||
Total loans held to maturity | 49,005 | 48,755 | 47,866 | (2.32 | %) | (1.82 | %) | |||||||||||||||||||
Total loans held for sale | 8 | 10 | 6 | (28.17 | %) | - | ||||||||||||||||||||
Total loans | $ | 49,013 | $ | 48,765 | $ | 47,872 | (2.33 | %) | (1.83 | %) | ||||||||||||||||
Nonperforming Assets (period end) | ||||||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||||||
Commercial, financial and industrial | $ | 260 | $ | 380 | $ | 336 | 29.23 | % | (11.58 | %) | ||||||||||||||||
Construction | 99 | 388 | 335 | nm | (13.66 | %) | ||||||||||||||||||||
Mortgage - Commercial | 56 | 355 | 414 | nm | 16.62 | % | ||||||||||||||||||||
Mortgage - Residential (11) | - | 165 | 194 | nm | 17.58 | % | ||||||||||||||||||||
Consumer (11) | - | 21 | 21 | nm | 0.00 | % | ||||||||||||||||||||
Restructured - nonaccrual (11) | - | 16 | 17 | nm | 6.25 | % | ||||||||||||||||||||
Total nonaccrual loans | 415 | 1,325 | 1,317 | nm | (0.60 | %) | ||||||||||||||||||||
Restructured loans - nonperforming | 1 | - | - | (100.00 | %) | - | ||||||||||||||||||||
Distressed loans held for sale | - | 9 | - | - | (100.00 | %) | ||||||||||||||||||||
Foreclosed assets | 21 | 34 | 33 | 57.14 | % | (2.94 | %) | |||||||||||||||||||
Total nonperforming assets | $ | 437 | $ | 1,368 | $ | 1,350 | nm | (1.32 | %) | |||||||||||||||||
Loans 90 days or more past due and still accruing | $ | 71 | $ | 5 | $ | 5 | (92.96 | %) | 0.00 | % | ||||||||||||||||
Restructured loans that are still accruing | $ | - | $ | 2 | $ | 4 | nm | 100.00 | % | |||||||||||||||||
Analysis of Allowances for Credit Losses | ||||||||||||||||||||||||||
Beginning balance | $ | 581 | $ | 1,082 | $ | 1,261 | ||||||||||||||||||||
Provision for loan losses | 231 | 314 | 191 | |||||||||||||||||||||||
Loans charged off: | ||||||||||||||||||||||||||
Commercial, financial and industrial | (49 | ) | (78 | ) | (46 | ) | ||||||||||||||||||||
Construction | (7 | ) | (14 | ) | (31 | ) | ||||||||||||||||||||
Mortgage - Commercial | - | (26 | ) | (19 | ) | |||||||||||||||||||||
Mortgage - Residential | (3 | ) | (14 | ) | (11 | ) | ||||||||||||||||||||
Consumer | (8 | ) | (11 | ) | (10 | ) | ||||||||||||||||||||
Total loans charged off | (67 | ) | (143 | ) | (117 | ) | ||||||||||||||||||||
Loans recovered: | ||||||||||||||||||||||||||
Commercial, financial and industrial | 1 | 6 | 21 | |||||||||||||||||||||||
Construction | 1 | - | 1 | |||||||||||||||||||||||
Consumer | - | 1 | - | |||||||||||||||||||||||
Total loans recovered | 2 | 7 | 22 | |||||||||||||||||||||||
Net loans recovered (charged off) | (65 | ) | (136 | ) | (95 | ) | ||||||||||||||||||||
Adjustment for impaired loans related to privatization | (8 | ) | - | - | ||||||||||||||||||||||
Foreign translation adjustment | (1 | ) | 1 | - | ||||||||||||||||||||||
Ending balance of allowance for loan losses | 738 | 1,261 | 1,357 | |||||||||||||||||||||||
Allowance for off-balance sheet commitment losses | 125 | 172 | 176 | |||||||||||||||||||||||
Allowances for credit losses | $ | 863 | $ | 1,433 | $ | 1,533 | ||||||||||||||||||||
Refer to Exhibit 12 for footnote explanations. | ||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||
Exhibit 6 | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
December 31, 2008 (1) | December 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: (12) | ||||||||||||||||||||||||
Commercial, financial and industrial | $ | 18,300,686 | $ | 239,664 | 5.21 | % | $ | 15,761,679 | $ | 175,967 | 4.43 | % | ||||||||||||
Construction | 2,686,102 | 32,259 | 4.78 | 2,591,025 | 19,556 | 2.99 | ||||||||||||||||||
Residential mortgage | 15,701,726 | 226,053 | 5.76 | 16,675,231 | 229,979 | 5.52 | ||||||||||||||||||
Commercial mortgage | 8,086,680 | 111,154 | 5.50 | 8,268,335 | 87,166 | 4.22 | ||||||||||||||||||
Consumer | 3,588,873 | 53,231 | 5.90 | 3,911,899 | 44,100 | 4.47 | ||||||||||||||||||
Lease financing | 648,752 | 5,012 | 3.09 | 663,546 | 2,582 | 1.56 | ||||||||||||||||||
Total loans | 49,012,819 | 667,373 | 5.43 | 47,871,715 | 559,350 | 4.66 | ||||||||||||||||||
Securities - taxable | 7,927,236 | 111,370 | 5.62 | 20,186,074 | 143,992 | 2.85 | ||||||||||||||||||
Securities - tax-exempt | 52,118 | 1,052 | 8.07 | 44,780 | 990 | 8.85 | ||||||||||||||||||
Interest bearing deposits in banks | 6,764 | 71 | 4.20 | 6,662,211 | 4,043 | 0.24 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 122,640 | 899 | 2.92 | 144,599 | 23 | 0.06 | ||||||||||||||||||
Trading account assets | 1,015,633 | 527 | 0.21 | 891,349 | 434 | 0.19 | ||||||||||||||||||
Total earning assets | 58,137,210 | 781,292 | 5.36 | 75,800,728 | 708,832 | 3.73 | ||||||||||||||||||
Allowance for loan losses | (551,627 | ) | (1,237,014 | ) | ||||||||||||||||||||
Cash and due from banks | 2,775,154 | 1,257,857 | ||||||||||||||||||||||
Premises and equipment, net | 668,628 | 673,721 | ||||||||||||||||||||||
Other assets | 5,492,153 | 5,469,664 | ||||||||||||||||||||||
Total assets | $ | 66,521,518 | $ | 81,964,956 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 18,277,265 | 71,731 | 1.56 | $ | 37,759,339 | 74,193 | 0.78 | ||||||||||||||||
Savings and consumer time | 4,185,219 | 15,591 | 1.48 | 5,280,596 | 14,422 | 1.08 | ||||||||||||||||||
Large time | 8,718,514 | 50,820 | 2.32 | 7,867,984 | 13,088 | 0.66 | ||||||||||||||||||
Total interest bearing deposits | 31,180,998 | 138,142 | 1.76 | 50,907,919 | 101,703 | 0.79 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,183,014 | 3,437 | 1.16 | 137,133 | 24 | 0.07 | ||||||||||||||||||
Net funding allocated from (to) discontinued operations (13) | 9,149 | 36 | 1.57 | - | - | - | ||||||||||||||||||
Commercial paper | 1,151,296 | 5,640 | 1.95 | 386,067 | 194 | 0.20 | ||||||||||||||||||
Other borrowed funds (14) | 7,496,938 | 37,135 | 1.97 | 313,747 | 613 | 0.78 | ||||||||||||||||||
Medium- and long-term debt | 3,871,749 | 34,291 | 3.52 | 4,481,900 | 25,648 | 2.27 | ||||||||||||||||||
Trust notes | 14,035 | 238 | 6.79 | 13,582 | 238 | 7.02 | ||||||||||||||||||
Total borrowed funds | 13,726,181 | 80,777 | 2.34 | 5,332,429 | 26,717 | 1.99 | ||||||||||||||||||
Total interest bearing liabilities | 44,907,179 | 218,919 | 1.94 | 56,240,348 | 128,420 | 0.91 | ||||||||||||||||||
Noninterest bearing deposits | 12,879,609 | 14,790,001 | ||||||||||||||||||||||
Other liabilities | 1,985,793 | 1,528,972 | ||||||||||||||||||||||
Total liabilities | 59,772,581 | 72,559,321 | ||||||||||||||||||||||
Stockholder's Equity | ||||||||||||||||||||||||
Common equity | 6,748,937 | 9,405,635 | ||||||||||||||||||||||
Total stockholder's equity | 6,748,937 | 9,405,635 | ||||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 66,521,518 | $ | 81,964,956 | ||||||||||||||||||||
Reported Net Interest Income/Margin | ||||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 562,373 | 3.86 | % | 580,412 | 3.06 | % | ||||||||||||||||||
Less: taxable-equivalent adjustment | 2,407 | 2,685 | ||||||||||||||||||||||
Net interest income | $ | 559,966 | $ | 577,727 | ||||||||||||||||||||
Average Assets and Liabilities of Discontinued Operations for Period Ended: | ||||||||||||||||||||||||
December 31, 2008 | December 31, 2009 | |||||||||||||||||||||||
Assets | $ | 755 | $ | - | ||||||||||||||||||||
Liabilities | $ | 9,904 | $ | - | ||||||||||||||||||||
Net Liabilities | $ | (9,149 | ) | $ | - | |||||||||||||||||||
Refer to Exhibit 12 for footnote explanations. | ||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||
Net Interest Income (Unaudited) | |||||||||||||||||||||||
Exhibit 7 | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, 2009 (1) | December 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: (12) | |||||||||||||||||||||||
Commercial, financial and industrial | $ | 16,805,449 | $ | 188,974 | 4.46 | % | $ | 15,761,679 | $ | 175,967 | 4.43 | % | |||||||||||
Construction | 2,772,804 | 20,828 | 2.98 | 2,591,025 | 19,556 | 2.99 | |||||||||||||||||
Residential mortgage | 16,380,014 | 230,210 | 5.62 | 16,675,231 | 229,979 | 5.52 | |||||||||||||||||
Commercial mortgage | 8,261,161 | 88,998 | 4.31 | 8,268,335 | 87,166 | 4.22 | |||||||||||||||||
Consumer | 3,882,929 | 44,042 | 4.50 | 3,911,899 | 44,100 | 4.47 | |||||||||||||||||
Lease financing | 662,469 | 5,462 | 3.30 | 663,546 | 2,582 | 1.56 | |||||||||||||||||
Total loans | 48,764,826 | 578,514 | 4.73 | 47,871,715 | 559,350 | 4.66 | |||||||||||||||||
Securities - taxable | 10,590,200 | 107,171 | 4.05 | 20,186,074 | 143,992 | 2.85 | |||||||||||||||||
Securities - tax-exempt | 184,772 | 2,999 | 6.49 | 44,780 | 990 | 8.85 | |||||||||||||||||
Interest bearing deposits in banks | 7,496,380 | 4,956 | 0.26 | 6,662,211 | 4,043 | 0.24 | |||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 282,457 | 110 | 0.15 | 144,599 | 23 | 0.06 | |||||||||||||||||
Trading account assets | 916,448 | 271 | 0.12 | 891,349 | 434 | 0.19 | |||||||||||||||||
Total earning assets | 68,235,083 | 694,021 | 4.06 | 75,800,728 | 708,832 | 3.73 | |||||||||||||||||
Allowance for loan losses | (1,044,533 | ) | (1,237,014 | ) | |||||||||||||||||||
Cash and due from banks | 1,135,794 | 1,257,857 | |||||||||||||||||||||
Premises and equipment, net | 668,699 | 673,721 | |||||||||||||||||||||
Other assets | 5,357,606 | 5,469,664 | |||||||||||||||||||||
Total assets | $ | 74,352,649 | $ | 81,964,956 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Transaction accounts | $ | 33,064,944 | 72,837 | 0.87 | $ | 37,759,339 | 74,193 | 0.78 | |||||||||||||||
Savings and consumer time | 4,486,545 | 12,572 | 1.11 | 5,280,596 | 14,422 | 1.08 | |||||||||||||||||
Large time | 7,430,960 | 15,965 | 0.85 | 7,867,984 | 13,088 | 0.66 | |||||||||||||||||
Total interest bearing deposits | 44,982,449 | 101,374 | 0.89 | 50,907,919 | 101,703 | 0.79 | |||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 169,267 | 41 | 0.09 | 137,133 | 24 | 0.07 | |||||||||||||||||
Commercial paper | 472,246 | 355 | 0.30 | 386,067 | 194 | 0.20 | |||||||||||||||||
Other borrowed funds (14) | 262,441 | 604 | 0.91 | 313,747 | 613 | 0.78 | |||||||||||||||||
Medium- and long-term debt | 5,098,821 | 27,112 | 2.11 | 4,481,900 | 25,648 | 2.27 | |||||||||||||||||
Trust notes | 13,696 | 239 | 6.96 | 13,582 | 238 | 7.02 | |||||||||||||||||
Total borrowed funds | 6,016,471 | 28,351 | 1.87 | 5,332,429 | 26,717 | 1.99 | |||||||||||||||||
Total interest bearing liabilities | 50,998,920 | 129,725 | 1.01 | 56,240,348 | 128,420 | 0.91 | |||||||||||||||||
Noninterest bearing deposits | 14,471,487 | 14,790,001 | |||||||||||||||||||||
Other liabilities | 1,523,469 | 1,528,972 | |||||||||||||||||||||
Total liabilities | 66,993,876 | 72,559,321 | |||||||||||||||||||||
Stockholder's Equity | |||||||||||||||||||||||
Common equity | 7,358,773 | 9,405,635 | |||||||||||||||||||||
Total stockholder's equity | 7,358,773 | 9,405,635 | |||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 74,352,649 | $ | 81,964,956 | |||||||||||||||||||
Reported Net Interest Income/Margin | |||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 564,296 | 3.31 | % | 580,412 | 3.06 | % | |||||||||||||||||
Less: taxable-equivalent adjustment | 3,260 | 2,685 | |||||||||||||||||||||
Net interest income | $ | 561,036 | $ | 577,727 | |||||||||||||||||||
Refer to Exhibit 12 for footnote explanations. | |||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||
Exhibit 8 | ||||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||
December 31, 2008 (1) | December 31, 2009 (1) | |||||||||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(Dollars in thousands) | Balance | Expense (2) | Rate (2) | Balance | Expense (2) | Rate (2) | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Loans: (12) | ||||||||||||||||||||||||
Commercial, financial and industrial | $ | 17,045,080 | $ | 936,956 | 5.50 | % | $ | 17,239,150 | $ | 753,288 | 4.37 | % | ||||||||||||
Construction | 2,585,221 | 130,022 | 5.03 | 2,721,282 | 80,303 | 2.95 | ||||||||||||||||||
Residential mortgage | 14,872,261 | 830,559 | 5.58 | 16,269,413 | 924,896 | 5.68 | ||||||||||||||||||
Commercial mortgage | 7,793,422 | 447,662 | 5.74 | 8,259,400 | 370,242 | 4.48 | ||||||||||||||||||
Consumer | 3,170,513 | 193,360 | 6.10 | 3,840,209 | 178,797 | 4.66 | ||||||||||||||||||
Lease financing | 645,608 | 18,546 | 2.87 | 660,113 | 21,295 | 3.23 | ||||||||||||||||||
Total loans | 46,112,105 | 2,557,105 | 5.55 | 48,989,567 | 2,328,821 | 4.75 | ||||||||||||||||||
Securities - taxable | 8,230,740 | 413,180 | 5.02 | 11,943,958 | 451,157 | 3.78 | ||||||||||||||||||
Securities - tax-exempt | 52,510 | 4,284 | 8.16 | 82,302 | 6,030 | 7.33 | ||||||||||||||||||
Interest bearing deposits in banks | 29,352 | 574 | 1.96 | 5,168,329 | 13,449 | 0.26 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 256,281 | 6,472 | 2.53 | 206,853 | 371 | 0.18 | ||||||||||||||||||
Trading account assets | 875,075 | 5,814 | 0.66 | 1,027,571 | 1,094 | 0.11 | ||||||||||||||||||
Total earning assets | 55,556,063 | 2,987,429 | 5.38 | 67,418,580 | 2,800,922 | 4.15 | ||||||||||||||||||
Allowance for loan losses | (478,661 | ) | (958,975 | ) | ||||||||||||||||||||
Cash and due from banks | 1,951,761 | 1,248,226 | ||||||||||||||||||||||
Premises and equipment, net | 527,943 | 671,599 | ||||||||||||||||||||||
Other assets | 3,351,249 | 5,386,660 | ||||||||||||||||||||||
Total assets | $ | 60,908,355 | $ | 73,766,090 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 16,066,060 | 275,795 | 1.72 | $ | 30,757,333 | 274,676 | 0.89 | ||||||||||||||||
Savings and consumer time | 4,027,824 | 66,275 | 1.65 | 4,617,999 | 56,479 | 1.22 | ||||||||||||||||||
Large time | 10,358,779 | 296,977 | 2.87 | 7,286,282 | 77,146 | 1.06 | ||||||||||||||||||
Total interest bearing deposits | 30,452,663 | 639,047 | 2.10 | 42,661,614 | 408,301 | 0.96 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 2,137,718 | 47,065 | 2.20 | 180,087 | 137 | 0.08 | ||||||||||||||||||
Net funding allocated from (to) discontinued operations (13) | 36,378 | 810 | 2.23 | - | - | - | ||||||||||||||||||
Commercial paper | 1,319,360 | 31,767 | 2.41 | 536,170 | 3,095 | 0.58 | ||||||||||||||||||
Other borrowed funds (14) | 4,425,435 | 107,698 | 2.43 | 1,928,245 | 18,310 | 0.95 | ||||||||||||||||||
Medium- and long-term debt | 2,915,838 | 99,429 | 3.41 | 4,867,602 | 109,704 | 2.25 | ||||||||||||||||||
Trust notes | 14,204 | 953 | 6.71 | 13,751 | 953 | 6.93 | ||||||||||||||||||
Total borrowed funds | 10,848,933 | 287,722 | 2.65 | 7,525,855 | 132,199 | 1.76 | ||||||||||||||||||
Total interest bearing liabilities | 41,301,596 | 926,769 | 2.24 | 50,187,469 | 540,500 | 1.08 | ||||||||||||||||||
Noninterest bearing deposits | 12,680,533 | 13,932,977 | ||||||||||||||||||||||
Other liabilities | 1,755,431 | 1,790,454 | ||||||||||||||||||||||
Total liabilities | 55,737,560 | 65,910,900 | ||||||||||||||||||||||
Stockholder's Equity | ||||||||||||||||||||||||
Common equity | 5,170,795 | 7,855,190 | ||||||||||||||||||||||
Total stockholder's equity | 5,170,795 | 7,855,190 | ||||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 60,908,355 | $ | 73,766,090 | ||||||||||||||||||||
Reported Net Interest Income/Margin | ||||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 2,060,660 | 3.71 | % | 2,260,422 | 3.35 | % | ||||||||||||||||||
Less: taxable-equivalent adjustment | 9,812 | 11,310 | ||||||||||||||||||||||
Net interest income | $ | 2,050,848 | $ | 2,249,112 | ||||||||||||||||||||
Average Assets and Liabilities of Discontinued Operations for Period Ended: | ||||||||||||||||||||||||
December 31, 2008 | December 31, 2009 | |||||||||||||||||||||||
Assets | $ | 56,130 | $ | - | ||||||||||||||||||||
Liabilities | $ | 92,508 | $ | - | ||||||||||||||||||||
Net Liabilities | $ | (36,378 | ) | $ | - | |||||||||||||||||||
Refer to Exhibit 12 for footnote explanations. | ||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||
Noninterest income (Unaudited) | |||||||||||||||||||||||
Exhibit 9 | |||||||||||||||||||||||
Percentage Change to | |||||||||||||||||||||||
For the Three Months Ended | December 31, 2009 from | ||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | September 30, | |||||||||||||||||||
(Dollars in thousands) | 2008 (1) | 2009 (1) | 2009 (1) | 2008 | 2009 | ||||||||||||||||||
Service charges on deposit accounts | $ | 73,444 | $ | 74,888 | $ | 72,711 | (1.00 | ) | % | (2.91 | ) | % | |||||||||||
Trust and investment management fees | 37,427 | 34,506 | 32,454 | (13.29 | ) | (5.95 | ) | ||||||||||||||||
Trading account activities | 14,434 | 10,513 | 24,134 | 67.20 | nm | ||||||||||||||||||
Merchant banking fees | 13,879 | 14,601 | 16,295 | 17.41 | 11.60 | ||||||||||||||||||
Securities gains (losses), net | (4 | ) | 12,694 | 11,759 | nm | (7.37 | ) | ||||||||||||||||
Card processing fees, net | 7,493 | 8,559 | 8,293 | 10.68 | (3.11 | ) | |||||||||||||||||
Brokerage commissions and fees | 8,877 | 8,611 | 8,160 | (8.08 | ) | (5.24 | ) | ||||||||||||||||
Gains (losses) on private capital investments, net | 3,750 | (18 | ) | (9,519 | ) | nm | nm | ||||||||||||||||
Other | 19,613 | 19,575 | 20,999 | 7.07 | 7.27 | ||||||||||||||||||
Total noninterest income | $ | 178,913 | $ | 183,929 | $ | 185,286 | 3.56 | % | 0.74 | % | |||||||||||||
Noninterest expense (Unaudited) | |||||||||||||||||||||||
Percentage Change to | |||||||||||||||||||||||
For the Three Months Ended | December 31, 2009 from | ||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | September 30, | |||||||||||||||||||
(Dollars in thousands) | 2008 (1) | 2009 (1) | 2009 (1) | 2008 | 2009 | ||||||||||||||||||
Salaries and other compensation | $ | 209,800 | $ | 198,768 | $ | 220,789 | 5.24 | % | 11.08 | % | |||||||||||||
Employee benefits | 45,183 | 35,213 | 40,266 | (10.88 | ) | 14.35 | |||||||||||||||||
Salaries and employee benefits | 254,983 | 233,981 | 261,055 | 2.38 | 11.57 | ||||||||||||||||||
Intangible asset amortization | 42,924 | 40,641 | 40,101 | (6.58 | ) | (1.33 | ) | ||||||||||||||||
Net occupancy | 41,558 | 43,146 | 38,793 | (6.65 | ) | (10.09 | ) | ||||||||||||||||
Regulatory agencies | 7,893 | 30,739 | 32,103 | nm | 4.44 | ||||||||||||||||||
Outside services | 20,888 | 22,219 | 25,288 | 21.06 | 13.81 | ||||||||||||||||||
Software | 16,432 | 16,502 | 17,205 | 4.70 | 4.26 | ||||||||||||||||||
Professional services | 23,122 | 17,647 | 16,981 | (26.56 | ) | (3.77 | ) | ||||||||||||||||
Equipment | 16,646 | 17,838 | 16,383 | (1.58 | ) | (8.16 | ) | ||||||||||||||||
Low income housing credit investment amortization | 11,330 | 13,064 | 14,825 | 30.85 | 13.48 | ||||||||||||||||||
Advertising and public relations | 17,565 | 14,562 | 13,354 | (23.97 | ) | (8.30 | ) | ||||||||||||||||
Communications | 9,377 | 9,494 | 9,556 | 1.91 | 0.65 | ||||||||||||||||||
Data processing | 8,285 | 7,975 | 8,658 | 4.50 | 8.56 | ||||||||||||||||||
Foreclosed asset expense (income) | 323 | (144 | ) | 2,315 | nm | nm | |||||||||||||||||
Provision for losses on off-balance sheet commitments | 14,000 | 6,000 | 4,000 | (71.43 | ) | (33.33 | ) | ||||||||||||||||
Privatization-related expense | 84,312 | 6,649 | 4,981 | (94.09 | ) | (25.09 | ) | ||||||||||||||||
Other | 60,728 | 25,502 | 23,647 | (61.06 | ) | (7.27 | ) | ||||||||||||||||
Total noninterest expense | $ | 630,366 | $ | 505,815 | $ | 529,245 | (16.04 | ) | % | 4.63 | % | ||||||||||||
Refer to Exhibit 12 for footnote explanations. | |||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||
Noninterest income (Unaudited) | ||||||||||||||
Exhibit 10 | ||||||||||||||
Percentage Change to | ||||||||||||||
For the Twelve Months Ended | December 31, 2009 from | |||||||||||||
December 31, | December 31, | December 31, | ||||||||||||
(Dollars in thousands) | 2008 (1) | 2009 (1) | 2008 | |||||||||||
Service charges on deposit accounts | $ | 302,965 | $ | 290,764 | (4.03 | ) | % | |||||||
Trust and investment management fees | 165,255 | 134,997 | (18.31 | ) | ||||||||||
Trading account activities | 54,530 | 73,590 | 34.95 | |||||||||||
Merchant banking fees | 49,546 | 64,652 | 30.49 | |||||||||||
Brokerage commissions and fees | 38,891 | 33,584 | (13.65 | ) | ||||||||||
Card processing fees, net | 31,553 | 32,512 | 3.04 | |||||||||||
Securities gains, net | 44 | 24,281 | nm | |||||||||||
Gains (losses) on private capital investments, net | 11,699 | (12,781 | ) | nm | ||||||||||
Gains on the VISA IPO redemption | 14,211 | - | (100.00 | ) | ||||||||||
Other | 103,962 | 85,545 | (17.72 | ) | ||||||||||
Total noninterest income | $ | 772,656 | $ | 727,144 | (5.89 | ) | % | |||||||
Noninterest expense (Unaudited) | ||||||||||||||
Percentage Change to | ||||||||||||||
For the Twelve Months Ended | December 31, 2009 from | |||||||||||||
December 31, | December 31, | December 31, | ||||||||||||
(Dollars in thousands) | 2008 (1) | 2009 (1) | 2008 | |||||||||||
Salaries and other compensation | $ | 810,277 | $ | 798,883 | (1.41 | ) | % | |||||||
Employee benefits | 167,804 | 172,773 | 2.96 | |||||||||||
Salaries and employee benefits | 978,081 | 971,656 | (0.66 | ) | ||||||||||
Net occupancy | 154,566 | 167,082 | 8.10 | |||||||||||
Intangible asset amortization | 44,935 | 161,910 | nm | |||||||||||
Regulatory agencies | 23,971 | 133,616 | nm | |||||||||||
Outside services | 78,933 | 89,289 | 13.12 | |||||||||||
Professional services | 70,886 | 70,055 | (1.17 | ) | ||||||||||
Equipment | 61,571 | 66,236 | 7.58 | |||||||||||
Software | 60,448 | 62,950 | 4.14 | |||||||||||
Advertising and public relations | 51,144 | 49,886 | (2.46 | ) | ||||||||||
Low income housing credit investment amortization | 40,577 | 49,081 | 20.96 | |||||||||||
Communications | 37,067 | 36,960 | (0.29 | ) | ||||||||||
Data processing | 32,090 | 33,250 | 3.61 | |||||||||||
Foreclosed asset expense | 1,019 | 6,339 | nm | |||||||||||
Provision for losses on off-balance sheet commitments | 35,000 | 51,000 | 45.71 | |||||||||||
Privatization-related expense | 90,505 | 45,882 | (49.30 | ) | ||||||||||
Other | 135,903 | 93,309 | (31.34 | ) | ||||||||||
Total noninterest expense | $ | 1,896,696 | $ | 2,088,501 | 10.11 | % | ||||||||
Refer to Exhibit 12 for footnote explanations. | ||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||
Exhibit 11 | |||||||||||||||||||||
The following table presents a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and specific non-GAAP measures as used to complete selected non-GAAP financial ratios. | |||||||||||||||||||||
For the three months ended | For the twelve months ended | ||||||||||||||||||||
(Dollars in thousands) | December 31, 2008 | September 30, 2009 | December 31, 2009 | December 31, 2008 | December 31, 2009 | ||||||||||||||||
Income (loss) from continuing operations | $ | (82,862 | ) | $ | (17,029 | ) | $ | 41,883 | $ | 283,940 | $ | (64,961 | ) | ||||||||
Privatization-related expense, net of tax | 57,498 | (460 | ) | 2,993 | 63,691 | 23,407 | |||||||||||||||
Net accretion and amortization related to fair value adjustments, net of tax | 19,474 | 11,832 | 10,556 | 19,474 | 35,671 | ||||||||||||||||
Income (loss) from continuing operations, excluding impact of privatization transaction | $ | (5,890 | ) | $ | (5,657 | ) | $ | 55,432 | $ | 367,105 | $ | (5,883 | ) | ||||||||
Average total assets | $ | 66,521,518 | $ | 74,352,649 | $ | 81,964,956 | $ | 60,908,355 | $ | 73,766,090 | |||||||||||
Net adjustments related to privatization transaction | 2,659,315 | 2,590,543 | 2,569,276 | 668,462 | 2,597,668 | ||||||||||||||||
Average total assets, excluding impact of privatization transaction | $ | 63,862,203 | $ | 71,762,106 | $ | 79,395,680 | $ | 60,239,893 | $ | 71,168,422 | |||||||||||
Return on average assets from continuing operations | (0.50 | %) | (0.09 | %) | 0.20 | % | 0.47 | % | (0.09 | %) | |||||||||||
Effect of privatization transaction | 0.46 | % | 0.06 | % | 0.08 | % | 0.14 | % | 0.08 | % | |||||||||||
Return on average assets from continuing operations, excluding impact of privatization transaction | (0.04 | %) | (0.03 | %) | 0.28 | % | 0.61 | % | (0.01 | %) | |||||||||||
Average stockholder's equity | $ | 6,748,937 | $ | 7,358,773 | $ | 9,405,635 | $ | 5,170,795 | $ | 7,855,190 | |||||||||||
Net adjustments related to privatization transaction | 2,397,011 | 2,418,824 | 2,416,677 | 602,527 | 2,411,897 | ||||||||||||||||
Average stockholder's equity, excluding impact of privatization transaction | $ | 4,351,926 | $ | 4,939,949 | $ | 6,988,958 | $ | 4,568,268 | $ | 5,443,293 | |||||||||||
Return on stockholder's equity from continuing operations | (4.88 | %) | (0.92 | %) | 1.77 | % | 5.49 | % | (0.83 | %) | |||||||||||
Effect of privatization transaction | 4.34 | % | 0.47 | % | 1.38 | % | 2.55 | % | 0.72 | % | |||||||||||
Return on stockholder's equity, excluding impact of privatization transaction | (0.54 | %) | (0.45 | %) | 3.15 | % | 8.04 | % | (0.11 | %) | |||||||||||
Noninterest expense | $ | 630,366 | $ | 505,815 | $ | 529,245 | $ | 1,896,696 | $ | 2,088,501 | |||||||||||
Privatization-related expense | 84,312 | 6,649 | 4,981 | 90,505 | 45,882 | ||||||||||||||||
Amortization related to fair value adjustments | 44,373 | 42,549 | 39,743 | 44,373 | 166,728 | ||||||||||||||||
Noninterest expense, excluding impact of privatization transaction | $ | 501,681 | $ | 456,617 | $ | 484,521 | $ | 1,761,818 | $ | 1,875,891 | |||||||||||
Total revenue | $ | 741,286 | $ | 748,225 | $ | 765,698 | $ | 2,833,316 | $ | 2,987,566 | |||||||||||
Accretion related to fair value adjustments | 12,354 | 23,060 | 21,799 | 12,354 | 107,415 | ||||||||||||||||
Total revenue, excluding impact of privatization transaction | $ | 728,932 | $ | 725,165 | $ | 743,899 | $ | 2,820,962 | $ | 2,880,151 | |||||||||||
Efficiency ratio | 81.58 | % | 65.07 | % | 66.36 | % | 64.24 | % | 66.34 | % | |||||||||||
Effect of privatization transaction | (16.28 | %) | (4.71 | %) | (4.07 | %) | (4.50 | %) | (4.90 | %) | |||||||||||
Efficiency ratio, excluding impact of privatization transaction | 65.30 | % | 60.36 | % | 62.29 | % | 59.74 | % | 61.44 | % | |||||||||||
UnionBanCal Corporation and Subsidiaries | |||
Footnotes | |||
Exhibit 12 | |||
(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 subsequent periods reflect the impact of these fair value adjustments and other amounts recorded. The Company’s results of operations for the twelve months ended December 31, 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 Tier 1 common capital ratio is the ratio of Tier 1 common capital to risk weighted assets. | ||
(9) | Estimated as of December 31, 2009. The regulatory capital and leverage ratios include discontinued operations. | ||
(10) | 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. | ||
(11) | Reflects previously disclosed change in accounting policy for residential and home equity loans 90 days or more past due, which was effective January 1, 2009. | ||
(12) | 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. | ||
(13) | 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. | ||
(14) | Includes interest bearing trading liabilities. | ||
(15) | These ratios exclude the impact of the privatization transaction. Please refer to Exhibit 11 for a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and these non-GAAP measures. | ||
nm = not meaningful | |||
CONTACT:
UnionBanCal Corporation
Public Relations:
Stephen L. Johnson, 415-765-3252
Investor Relations:
Michelle R. Crandall, 415-765-2780