Exhibit 99.1
UnionBanCal Corporation Reports First Quarter Net Income of $77 Million
SAN FRANCISCO--(BUSINESS WIRE)--April 29, 2010--UnionBanCal Corporation:
First Quarter Highlights:
- Net income was $77 million. Results included after-tax net expenses of $12 million related to the November 2008 privatization of UnionBanCal Corporation.
- On April 16, 2010, UnionBanCal Corporation announced that its primary subsidiary, Union Bank, N.A., acquired approximately $400 million in deposits and approximately $600 million in assets in an FDIC-assisted acquisition of San Rafael, California-based Tamalpais Bank.
- Revenue was up 7 percent year-over-year and up 3 percent compared with fourth quarter 2009.
- Net interest income was up 3 percent year-over-year and down 0.6 percent compared with fourth quarter 2009.
- Average total loans decreased 6 percent year-over-year and decreased 2 percent versus fourth quarter 2009.
- Average core deposits were up 39 percent year-over-year and up 1 percent versus fourth quarter 2009.
- Net interest margin was 2.95 percent, down 84 basis points year-over-year and down 11 basis points versus fourth quarter 2009.
- Annualized average all-in cost of funds was 0.62 percent, compared with 1.03 percent in first quarter 2009 and 0.72 percent in fourth quarter 2009.
- Asset quality metrics:
- Total provision for credit losses was $165 million, while net loans charged-off were $120 million, or 1.03 percent annualized, of average total loans.
- Net loans charged-off on the $16.8 billion average residential mortgage portfolio were $10 million, or 0.24 percent annualized.
- Nonperforming assets were $1.5 billion, or 1.72 percent of total assets, at quarter-end.
- Allowance for credit losses to nonaccrual loans was 111 percent at quarter-end. Allowance for credit losses to total loans was 3.38 percent at quarter-end.
- Capital:
- Total stockholder’s equity was $9.7 billion at March 31, 2010.
- Tangible common equity ratio was 8.47 percent at March 31, 2010, versus 8.29 percent at December 31, 2009.
- Tier 1 common capital ratio was 11.96 percent at March 31, 2010, versus 11.80 percent at December 31, 2009.
- Tier 1 risk-based capital ratio was 11.98 percent at March 31, 2010, versus 11.82 percent at December 31, 2009.
UnionBanCal Corporation (the Company or UB) today reported first quarter 2010 net income of $77 million, compared with net loss of $10 million a year earlier, and net income of $42 million in fourth quarter 2009. Total provision for credit losses was $165 million in first quarter 2010, compared with $275 million a year earlier, and $195 million in fourth quarter 2009. Net income (loss) included after-tax net expenses due to the privatization transaction of $12 million in first quarter 2010, $21 million in first quarter 2009, and $14 million in fourth quarter 2009. 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.
On April 16, 2010, Union Bank, N.A., the Company’s primary subsidiary, acquired certain deposits and assets of San Rafael, California-based Tamalpais Bank in a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC). Tamalpais Bank had seven full-service branches in the following communities in Marin County, California: Corte Madera, Mill Valley, San Anselmo, Tiburon-Belvedere, Greenbrae, Northgate and San Rafael, all of which reopened on April 19, 2010, as Union Bank branches. In the transaction, Union Bank acquired approximately $600 million in total assets, approximately $500 million of which are covered under a loss-share agreement with the FDIC. Union Bank also assumed more than $400 million in deposits.
Summary of First Quarter Results
First Quarter Total Revenue and Net Interest Income
For first quarter 2010, total revenue (taxable-equivalent net interest income plus noninterest income) was $787 million, up 7 percent compared with first quarter 2009. Net interest income increased 3 percent and noninterest income increased 20 percent.
Net interest income for first quarter 2010 was $577 million, which included $19 million of accretion related to fair value adjustments due to the privatization transaction, compared with net interest income for first quarter 2009 of $563 million, which included $35 million of accretion related to fair value adjustments due to the privatization transaction. Average total loans decreased $3 billion, or 6 percent; average interest bearing deposits increased $19 billion, or 57 percent; and average noninterest bearing deposits increased $2 billion, or 15 percent. The strong growth in average 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 liquidity that resulted from the combination of robust average deposit growth and declining average loan balances was invested primarily in lower yielding assets, particularly interest bearing deposits in banks and available for sale securities. This contributed to a decrease in the net interest margin, from 3.79 percent for first quarter 2009, to 2.95 percent for first quarter 2010.
The annualized average all-in cost of funds was 0.62 percent in first quarter 2010, compared with 1.03 percent in first quarter 2009. The Company’s average core deposit-to-loan ratio was 117 percent in first quarter 2010, compared with 79 percent in first quarter 2009.
Compared with fourth quarter 2009, total revenue increased 3 percent, with net interest income down 0.6 percent and noninterest income up 13 percent. Average total loans decreased $1 billion, or 2 percent; average interest bearing deposits increased $3 billion, or 5 percent; and average noninterest bearing deposits decreased $406 million, or 3 percent. The net interest margin decreased 11 basis points compared with fourth quarter 2009.
First Quarter Noninterest Income and Noninterest Expense
For first quarter 2010, noninterest income was $210 million, up $35 million, or 20 percent, from the same quarter a year ago. Service charges on deposit accounts decreased $5 million, or 7 percent, primarily due to lower overdraft fees. Securities gains, net, increased $34 million, primarily due to a gain on the sale of securities in first quarter 2010. Other noninterest income increased $7 million, or 39 percent, partially due to lower write-downs on investments recorded in first quarter 2010.
Noninterest income increased $25 million, or 13 percent, compared with fourth quarter 2009. Service charges on deposit accounts decreased $7 million, or 9 percent. Securities gains, net, increased $22 million, primarily due to higher gains on the sale of securities in first quarter 2010. Losses on private capital investments, net, decreased $9 million, primarily due to impairment charges on investments recorded in fourth quarter 2009.
Noninterest expense for first quarter 2010 was $525 million, an increase of $3 million, or 0.6 percent, compared with first quarter 2009. The increase was primarily attributable to a $36 million increase in salaries and employee benefits expense, partially offset by a $31 million decrease in provision for losses on off-balance sheet commitments.
Noninterest expense for first quarter decreased $5 million, or 0.9 percent, compared with fourth quarter 2009. The decline was primarily attributable to decreases of $8 million in intangible asset amortization expense, $9 million in provision for losses on off-balance sheet commitments, and $16 million in miscellaneous expenses. Partially offsetting these decreases was a $19 million, or 7 percent, increase in salaries and employee benefits expense, primarily due to annual seasonal factors that result in higher payroll taxes and 401(k) matching contributions.
Balance Sheet
At March 31, 2010, the Company had total assets of $85 billion, up $17 billion, or 24 percent, compared with March 31, 2009. Total loans were $47 billion, down $3 billion, or 6 percent, compared with March 31, 2009. Securities available for sale were $22 billion, up $15 billion, as deposit growth far outpaced loan growth.
At March 31, 2010, the Company had total liabilities of $75 billion, up $14 billion, or 23 percent, compared with March 31, 2009. Total deposits were $67 billion, up $18 billion, or 36 percent, compared with March 31, 2009. Core deposits at period-end were $53 billion, up $11 billion, or 27 percent, compared with March 31, 2009. At March 31, 2010, the Company’s core deposit-to-loan ratio was 114 percent.
Credit Quality
Nonperforming assets at March 31, 2010, were $1.47 billion, or 1.72 percent of total assets. This compares with $1.35 billion, or 1.58 percent of total assets, at December 31, 2009, and $835 million, or 1.21 percent of total assets, at March 31, 2009. The increase in nonperforming assets compared with March 31, 2009, resulted from weak economic conditions, which drove higher levels of nonaccrual loans in most areas of the loan portfolio. Higher levels of nonaccrual loans in the construction, commercial mortgage, residential mortgage and consumer loan categories were partially offset by lower levels of nonaccrual loans in the commercial, financial and industrial category.
For first quarter 2010, the total provision for credit losses was $165 million, down from $195 million for fourth quarter 2009. Net loans charged-off were $120 million, or 1.03 percent annualized, of average total loans, up from $95 million, or 0.79 percent annualized, of average total loans for fourth quarter 2009. 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 first quarter 2010, net loans charged-off on the commercial, financial and industrial portfolio were $54 million; net loans charged-off on the construction portfolio were $15 million; net loans charged-off on the commercial mortgage portfolio were $32 million; and net loans charged-off on the consumer portfolio were $9 million. Net loans charged-off on the residential mortgage portfolio, which averaged $16.8 billion outstanding for the quarter, were $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 2010, the provision for loan losses was $170 million, the reversal of provision for losses on off-balance sheet commitments was $5 million, and the total provision for credit losses was $165 million.
At March 31, 2010, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 3.38 percent and 111 percent, respectively. This compares with 3.25 percent and 116 percent, respectively, at December 31, 2009, and 2.07 percent and 126 percent, respectively, at March 31, 2009.
Capital
Total stockholder’s equity was $9.7 billion at March 31, 2010, and tangible common equity was $7.0 billion. The Company’s tangible common equity ratio was 8.47 percent at March 31, 2010, compared with 8.29 percent at December 31, 2009. The Tier 1 common capital ratio at March 31, 2010, was 11.96 percent, compared with 11.80 percent at December 31, 2009. The Company’s Tier 1 and total risk-based capital ratios at March 31, 2010, were 11.98 percent and 14.70 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 $85 billion at March 31, 2010. 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 346 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 | March 31, 2010 from | |||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | ||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2009 | 2009 | |||||||||||||||
Results of operations: | ||||||||||||||||||||
Net interest income (1) | $ | 562,620 | $ | 580,412 | $ | 576,794 | 2.52 | % | (0.62 | %) | ||||||||||
Noninterest income | 174,716 | 185,286 | 209,905 | 20.14 | % | 13.29 | % | |||||||||||||
Total revenue | 737,336 | 765,698 | 786,699 | 6.69 | % | 2.74 | % | |||||||||||||
Noninterest expense | 521,383 | 529,245 | 524,572 | 0.61 | % | (0.88 | %) | |||||||||||||
Provision for loan losses | 249,000 | 191,000 | 170,000 | (31.73 | %) | (10.99 | %) | |||||||||||||
Income (loss) before income taxes and noncontrolling interests (1) | (33,047 | ) | 45,453 | 92,127 | nm | nm | ||||||||||||||
Taxable-equivalent adjustment | 2,617 | 2,685 | 2,441 | (6.73 | %) | (9.09 | %) | |||||||||||||
Income tax expense (benefit) | (25,856 | ) | 885 | 15,401 | nm | nm | ||||||||||||||
Net income (loss) before noncontrolling interests | (9,808 | ) | 41,883 | 74,285 | nm | 77.36 | % | |||||||||||||
Less: Net loss from noncontrolling interests | - | - | (3,059 | ) | nm | nm | ||||||||||||||
Net income (loss) attributable to UnionBanCal Corporation (UNBC) | $ | (9,808 | ) | $ | 41,883 | $ | 77,344 | nm | 84.67 | % | ||||||||||
Balance sheet (end of period): | ||||||||||||||||||||
Total assets | $ | 68,725,270 | $ | 85,598,128 | $ | 85,471,296 | 24.37 | % | (0.15 | %) | ||||||||||
Total loans | 49,441,063 | 47,228,508 | 46,721,210 | (5.50 | %) | (1.07 | %) | |||||||||||||
Nonperforming assets | 834,738 | 1,349,793 | 1,466,937 | 75.74 | % | 8.68 | % | |||||||||||||
Total deposits | 48,878,733 | 68,517,653 | 66,581,593 | 36.22 | % | (2.83 | %) | |||||||||||||
Medium- and long-term debt | 5,140,931 | 4,212,184 | 4,710,979 | (8.36 | %) | 11.84 | % | |||||||||||||
UNBC stockholder's equity | 7,475,472 | 9,580,333 | 9,706,081 | 29.84 | % | 1.31 | % | |||||||||||||
Balance sheet (period average): | ||||||||||||||||||||
Total assets | $ | 67,072,499 | $ | 81,964,956 | $ | 84,810,109 | 26.45 | % | 3.47 | % | ||||||||||
Total loans | 49,789,046 | 47,871,715 | 46,847,523 | (5.91 | %) | (2.14 | %) | |||||||||||||
Earning assets | 59,626,207 | 75,800,728 | 78,311,856 | 31.34 | % | 3.31 | % | |||||||||||||
Total deposits | 46,633,173 | 65,697,920 | 67,838,145 | 45.47 | % | 3.26 | % | |||||||||||||
UNBC stockholder's equity | 7,336,212 | 9,405,635 | 9,532,428 | 29.94 | % | 1.35 | % | |||||||||||||
Financial ratios: | ||||||||||||||||||||
Return on average assets (2) | (0.06 | %) | 0.20 | % | 0.37 | % | ||||||||||||||
Return on average UNBC stockholder's equity (2) | (0.54 | %) | 1.77 | % | 3.29 | % | ||||||||||||||
Efficiency ratio (3) | 65.69 | % | 66.36 | % | 64.98 | % | ||||||||||||||
Net interest margin (1)(2) | 3.79 | % | 3.06 | % | 2.95 | % | ||||||||||||||
Tangible common equity ratio (4) | 7.12 | % | 8.29 | % | 8.47 | % | ||||||||||||||
Tier 1 common capital ratio (5)(6) | 8.72 | % | 11.80 | % | 11.96 | % | ||||||||||||||
Tier 1 risk-based capital ratio (6) | 8.74 | % | 11.82 | % | 11.98 | % | ||||||||||||||
Total risk-based capital ratio (6) | 11.59 | % | 14.54 | % | 14.70 | % | ||||||||||||||
Leverage ratio (6) | 8.46 | % | 9.45 | % | 9.22 | % | ||||||||||||||
Allowance for loan losses to: | ||||||||||||||||||||
Total loans | 1.76 | % | 2.87 | % | 3.01 | % | ||||||||||||||
Nonaccrual loans | 107.41 | % | 103.03 | % | 99.06 | % | ||||||||||||||
Allowances for credit losses to (7): | ||||||||||||||||||||
Total loans | 2.07 | % | 3.25 | % | 3.38 | % | ||||||||||||||
Nonaccrual loans | 126.10 | % | 116.42 | % | 111.11 | % | ||||||||||||||
Net loans charged off to average total loans (2) | 0.95 | % | 0.79 | % | 1.03 | % | ||||||||||||||
Nonperforming assets to total loans, foreclosed assets and distressed loans held for sale | 1.69 | % | 2.86 | % | 3.14 | % | ||||||||||||||
Nonperforming assets to total assets | 1.21 | % | 1.58 | % | 1.72 | % | ||||||||||||||
Selected financial ratios excluding impact of privatization transaction (10): | ||||||||||||||||||||
From Net income (loss) attributable to UNBC: | ||||||||||||||||||||
Return on average assets (2) | 0.07 | % | 0.28 | % | 0.44 | % | ||||||||||||||
Return on average stockholder's equity (2) | 0.91 | % | 3.15 | % | 5.10 | % | ||||||||||||||
Efficiency ratio (3) | 59.08 | % | 62.29 | % | 61.51 | % | ||||||||||||||
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) | 2009 | 2009 | 2010 | ||||||||||
Interest Income (1) | |||||||||||||
Loans | $ | 604,067 | $ | 559,350 | $ | 541,651 | |||||||
Securities | 103,281 | 144,982 | 143,659 | ||||||||||
Interest bearing deposits in banks | 900 | 4,043 | 4,055 | ||||||||||
Federal funds sold and securities purchased under resale agreements | 141 | 23 | 119 | ||||||||||
Trading account assets | 158 | 434 | 860 | ||||||||||
Total interest income | 708,547 | 708,832 | 690,344 | ||||||||||
Interest Expense | |||||||||||||
Deposits | 105,038 | 101,703 | 85,562 | ||||||||||
Federal funds purchased and securities sold under repurchase agreements | 53 | 24 | 37 | ||||||||||
Commercial paper | 1,592 | 194 | 240 | ||||||||||
Other borrowed funds | 11,477 | 613 | 1,202 | ||||||||||
Medium- and long-term debt | 27,529 | 25,648 | 26,241 | ||||||||||
Trust notes | 238 | 238 | 268 | ||||||||||
Total interest expense | 145,927 | 128,420 | 113,550 | ||||||||||
Net Interest Income (1) | 562,620 | 580,412 | 576,794 | ||||||||||
Provision for loan losses | 249,000 | 191,000 | 170,000 | ||||||||||
Net interest income after provision for loan losses | 313,620 | 389,412 | 406,794 | ||||||||||
Noninterest Income | |||||||||||||
Service charges on deposit accounts | 71,322 | 72,711 | 66,140 | ||||||||||
Securities gains, net | - | 11,759 | 33,893 | ||||||||||
Trust and investment management fees | 33,907 | 32,454 | 31,420 | ||||||||||
Trading account activities | 22,692 | 24,134 | 21,093 | ||||||||||
Merchant banking fees | 13,832 | 16,295 | 13,676 | ||||||||||
Card processing fees, net | 7,536 | 8,293 | 8,620 | ||||||||||
Brokerage commissions and fees | 8,307 | 8,160 | 8,528 | ||||||||||
Other | 17,120 | 11,480 | 26,535 | ||||||||||
Total noninterest income | 174,716 | 185,286 | 209,905 | ||||||||||
Noninterest Expense | |||||||||||||
Salaries and employee benefits | 243,563 | 261,055 | 279,586 | ||||||||||
Net occupancy | 41,921 | 38,793 | 43,380 | ||||||||||
Intangible asset amortization | 40,887 | 40,101 | 31,793 | ||||||||||
Regulatory agencies | 17,938 | 32,103 | 29,848 | ||||||||||
Outside services | 18,834 | 25,288 | 22,785 | ||||||||||
Professional services | 15,938 | 16,981 | 16,361 | ||||||||||
Equipment | 15,413 | 16,383 | 15,811 | ||||||||||
Software | 15,038 | 17,205 | 14,728 | ||||||||||
Foreclosed asset expense (income) | 886 | 2,315 | (198 | ) | |||||||||
(Reversal of) provision for losses on off-balance sheet commitments | 26,000 | 4,000 | (5,000 | ) | |||||||||
Privatization-related expense | 26,819 | 4,981 | 5,153 | ||||||||||
Other | 58,146 | 70,040 | 70,325 | ||||||||||
Total noninterest expense | 521,383 | 529,245 | 524,572 | ||||||||||
Income (loss) before income taxes and noncontrolling interests (1) | (33,047 | ) | 45,453 | 92,127 | |||||||||
Taxable-equivalent adjustment | 2,617 | 2,685 | 2,441 | ||||||||||
Income tax expense (benefit) | (25,856 | ) | 885 | 15,401 | |||||||||
Net Income (Loss) before Noncontrolling Interests | (9,808 | ) | 41,883 | 74,285 | |||||||||
Less: Net loss from noncontrolling interests | - | - | (3,059 | ) | |||||||||
Net Income (Loss) attributable to UNBC | $ | (9,808 | ) | $ | 41,883 | $ | 77,344 | ||||||
Refer to Exhibit 9 for footnote explanations. | |||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||
Exhibit 3 | ||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | |||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 1,328,279 | $ | 1,198,258 | $ | 1,110,333 | ||||||||||
Interest bearing deposits in banks (includes $9,991 at March 31, 2010 related to consolidated variable interest entities (VIEs)) | 2,505,861 | 6,585,029 |
| 6,874,338 | ||||||||||||
Federal funds sold and securities purchased under resale agreements | 110,083 | 442,552 | 488,520 | |||||||||||||
Total cash and cash equivalents | 3,944,223 | 8,225,839 | 8,473,191 | |||||||||||||
Trading account assets: | ||||||||||||||||
Pledged as collateral | 8,295 | 15,168 | 54,380 | |||||||||||||
Held in portfolio | 1,149,832 | 710,480 | 775,915 | |||||||||||||
Securities available for sale: | ||||||||||||||||
Pledged as collateral | 43,374 | 2,500 | - | |||||||||||||
Held in portfolio | 7,506,069 | 22,556,329 | 22,164,722 | |||||||||||||
Securities held to maturity (Fair value: March 31, 2009, $959,137; December 31, 2009, $1,457,654; March 31, 2010, $1,500,746) | 1,150,342 | 1,227,718 | 1,247,561 | |||||||||||||
Loans (net of allowance for loan losses: March 31, 2009, $870,185; December 31, 2009, $1,357,000; March 31, 2010, $1,408,013) | 48,570,878 | 45,871,508 | 45,313,197 | |||||||||||||
Due from customers on acceptances | 15,077 | 8,514 | 7,788 | |||||||||||||
Premises and equipment, net | 670,376 | 674,298 | 671,230 | |||||||||||||
Intangible assets, net | 672,568 | 561,040 | 529,247 | |||||||||||||
Goodwill | 2,369,326 | 2,369,326 | 2,369,326 | |||||||||||||
Other assets (includes $297,736 at March 31, 2010 related to consolidated VIEs) | 2,624,910 | 3,375,408 | 3,864,739 | |||||||||||||
Total assets | $ | 68,725,270 | $ | 85,598,128 | $ | 85,471,296 | ||||||||||
Liabilities | ||||||||||||||||
Noninterest bearing | $ | 13,543,015 | $ | 14,558,989 | $ | 14,389,261 | ||||||||||
Interest bearing | 35,335,718 | 53,958,664 | 52,192,332 | |||||||||||||
Total deposits | 48,878,733 | 68,517,653 | 66,581,593 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 320,376 | 150,453 | 575,668 | |||||||||||||
Commercial paper | 749,381 | 888,541 | 799,106 | |||||||||||||
Other borrowed funds | 3,861,905 | 591,934 | 833,617 | |||||||||||||
Trading account liabilities | 965,105 | 538,894 | 736,813 | |||||||||||||
Acceptances outstanding | 15,077 | 8,514 | 7,788 | |||||||||||||
Acceptances outstanding | 1,304,423 | 1,096,095 | 1,224,440 | |||||||||||||
Other liabilities (includes $1,675 at March 31, 2010 related to consolidated VIEs) | 5,140,931 | 4,212,184 | 4,710,979 | |||||||||||||
Junior subordinated debt payable to subsidiary grantor trust | 13,867 | 13,527 | 13,444 | |||||||||||||
Total liabilities | 61,249,798 | 76,017,795 | 75,483,448 | |||||||||||||
Equity | ||||||||||||||||
UNBC Stockholder's Equity: | ||||||||||||||||
Preferred stock: | ||||||||||||||||
Authorized 5,000,000 shares; no shares issued or outstanding | - | - | - | |||||||||||||
Common stock, par value $1 per share: | ||||||||||||||||
Authorized 300,000,000 shares; 136,330,829 shares issued | 136,331 | 136,331 | 136,331 | |||||||||||||
Additional paid-in capital | 3,195,023 | 5,195,023 | 5,195,023 | |||||||||||||
Retained earnings | 4,954,994 | 4,899,841 | 4,977,185 | |||||||||||||
Accumulated other comprehensive loss | (810,876 | ) | (650,862 | ) | (602,458 | ) | ||||||||||
Total UNBC stockholder's equity | 7,475,472 | 9,580,333 | 9,706,081 | |||||||||||||
Noncontrolling interests | - | - | 281,767 | |||||||||||||
Total equity | 7,475,472 | 9,580,333 | 9,987,848 | |||||||||||||
Total liabilities and equity | $ | 68,725,270 | $ | 85,598,128 | $ | 85,471,296 | ||||||||||
Refer to Exhibit 9 for footnote explanations. | ||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||
Loans and Allowance for Credit Losses (Unaudited) | |||||||||||||||||||||||||||
Exhibit 4 | |||||||||||||||||||||||||||
Percent Change to | |||||||||||||||||||||||||||
Three Months Ended | March 31, 2010 from | ||||||||||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | |||||||||||||||||||||||
(Dollars in millions) | 2009 | 2009 | 2010 | 2009 | 2009 | ||||||||||||||||||||||
Loans (period average) | |||||||||||||||||||||||||||
Commercial, financial and industrial | $ | 18,498 | $ | 15,761 | $ | 14,955 | (19.15 | %) | (5.11 | %) | |||||||||||||||||
Construction | 2,734 | 2,591 | 2,309 | (15.54 | %) | (10.88 | %) | ||||||||||||||||||||
Mortgage - Commercial | 8,253 | 8,268 | 8,234 | (0.23 | %) | (0.41 | %) | ||||||||||||||||||||
Mortgage - Residential | 15,919 | 16,670 | 16,781 | 5.41 | % | 0.67 | % | ||||||||||||||||||||
Consumer | 3,722 | 3,912 | 3,916 | 5.21 | % | 0.10 | % | ||||||||||||||||||||
Lease financing | 653 | 664 | 649 | (0.61 | %) | (2.26 | %) | ||||||||||||||||||||
Total loans held for investment | 49,779 | 47,866 | 46,844 | (5.90 | %) | (2.14 | %) | ||||||||||||||||||||
Total loans held for sale | 10 | 6 | 4 | (60.00 | %) | (33.33 | %) | ||||||||||||||||||||
Total loans | $ | 49,789 | $ | 47,872 | $ | 46,848 | (5.91 | %) | (2.14 | %) | |||||||||||||||||
Nonperforming Assets (period end) | |||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||
Commercial, financial and industrial | $ | 347 | $ | 336 | $ | 251 | (27.67 | %) | (25.30 | %) | |||||||||||||||||
Construction | 218 | 335 | 412 | 88.99 | % | 22.99 | % | ||||||||||||||||||||
Mortgage - Commercial | 125 | 414 | 501 | nm | 21.01 | % | |||||||||||||||||||||
Mortgage - Residential | 102 | 194 | 217 | nm | 11.86 | % | |||||||||||||||||||||
Consumer | 18 | 21 | 24 | 33.33 | % | 14.29 | % | ||||||||||||||||||||
Restructured - nonaccrual | - | 17 | 16 | nm | (5.88 | %) | |||||||||||||||||||||
Total nonaccrual loans | 810 | 1,317 | 1,421 | 75.43 | % | 7.90 | % | ||||||||||||||||||||
Restructured loans - nonperforming | 3 | - | - | (100.00 | %) | - | |||||||||||||||||||||
Foreclosed assets | 22 | 33 | 45 | nm | 36.36 | % | |||||||||||||||||||||
Total nonperforming assets | $ | 835 | $ | 1,350 | $ | 1,466 | 75.57 | % | 8.59 | % | |||||||||||||||||
Loans 90 days or more past due and still accruing | $ | 24 | $ | 5 | $ | 15 | (37.50 | %) | nm | ||||||||||||||||||
Restructured loans that are still accruing | $ | - | $ | 4 | $ | 7 | nm | 75.00 | % | ||||||||||||||||||
Analysis of Allowances for Credit Losses | |||||||||||||||||||||||||||
Beginning balance | $ | 738 | $ | 1,261 | $ | 1,357 | |||||||||||||||||||||
Provision for loan losses | 249 | 191 | 170 | ||||||||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||||||
Commercial, financial and industrial | (96 | ) | (46 | ) | (67 | ) | |||||||||||||||||||||
Construction | (2 | ) | (31 | ) | (17 | ) | |||||||||||||||||||||
Mortgage - Commercial | (4 | ) | (19 | ) | (32 | ) | |||||||||||||||||||||
Mortgage - Residential | (6 | ) | (11 | ) | (10 | ) | |||||||||||||||||||||
Consumer | (10 | ) | (10 | ) | (10 | ) | |||||||||||||||||||||
Total loans charged off | (118 | ) | (117 | ) | (136 | ) | |||||||||||||||||||||
Loans recovered: | |||||||||||||||||||||||||||
Commercial, financial and industrial | 1 | 21 | 13 | ||||||||||||||||||||||||
Construction | 1 | 1 | 2 | ||||||||||||||||||||||||
Consumer | - | - | 1 | ||||||||||||||||||||||||
Total loans recovered | 2 | 22 | 16 | ||||||||||||||||||||||||
Net loans recovered (charged off) | (116 | ) | (95 | ) | (120 | ) | |||||||||||||||||||||
Adjustment for impaired loans related to privatization | (1 | ) | - | - | |||||||||||||||||||||||
Foreign translation adjustment | - | - | 1 | ||||||||||||||||||||||||
Ending balance of allowance for loan losses | 870 | 1,357 | 1,408 | ||||||||||||||||||||||||
Allowance for off-balance sheet commitment losses | 151 | 176 | 171 | ||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||
Allowances for credit losses | $ | 1,021 | $ | 1,533 | $ | 1,579 | |||||||||||||||||||||
Refer to Exhibit 9 for footnote explanations. | |||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||
Exhibit 5 | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
March 31, 2009 | March 31, 2010 | |||||||||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(Dollars in thousands) | Balance | Expense (1) | Rate (1)(2) | Balance | Expense (1) | Rate (1)(2) | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Loans: (8) | ||||||||||||||||||||||||
Commercial, financial and industrial | $ | 18,503,965 | $ | 193,787 | 4.25 | % | $ | 14,954,956 | $ | 161,889 | 4.39 | % | ||||||||||||
Construction | 2,733,630 | 19,261 | 2.86 | 2,308,856 | 16,890 | 2.97 | ||||||||||||||||||
Residential mortgage | 15,923,191 | 234,438 | 5.89 | 16,784,420 | 227,489 | 5.42 | ||||||||||||||||||
Commercial mortgage | 8,253,324 | 102,389 | 4.96 | 8,234,255 | 86,393 | 4.20 | ||||||||||||||||||
Consumer | 3,722,252 | 46,539 | 5.07 | 3,915,724 | 42,809 | 4.43 | ||||||||||||||||||
Lease financing | 652,684 | 7,653 | 4.69 | 649,312 | 6,181 | 3.81 | ||||||||||||||||||
Total loans | 49,789,046 | 604,067 | 4.88 | 46,847,523 | 541,651 | 4.65 | ||||||||||||||||||
Securities - taxable | 8,319,754 | 102,256 | 4.92 | 23,504,338 | 142,774 | 2.43 | ||||||||||||||||||
Securities - tax-exempt | 50,417 | 1,025 | 8.13 | 42,327 | 885 | 8.37 | ||||||||||||||||||
Interest bearing deposits in banks | 4,220 | 900 | 0.48 | 6,596,843 | 4,055 | 0.25 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 196,567 | 141 | 0.29 | 461,098 | 119 | 0.10 | ||||||||||||||||||
Trading account assets | 1,266,203 | 158 | 0.05 | 859,727 | 860 | 0.41 | ||||||||||||||||||
Total earning assets | 59,626,207 | 708,547 | 4.78 | 78,311,856 | 690,344 | 3.54 | ||||||||||||||||||
Allowance for loan losses | (708,736 | ) | (1,407,252 | ) | ||||||||||||||||||||
Cash and due from banks | 2,142,198 | 1,205,261 | ||||||||||||||||||||||
Premises and equipment, net | 674,021 | 673,907 | ||||||||||||||||||||||
Other assets | 5,338,809 | 6,026,337 | ||||||||||||||||||||||
Total assets | $ | 67,072,499 | $ | 84,810,109 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 22,497,062 | 61,097 | 1.10 | $ | 39,861,094 | 63,079 | 0.64 | ||||||||||||||||
Savings and consumer time | 4,367,945 | 15,939 | 1.48 | 5,971,776 | 11,945 | 0.81 | ||||||||||||||||||
Large time | 7,232,767 | 28,002 | 1.57 | 7,621,415 | 10,538 | 0.56 | ||||||||||||||||||
Total interest bearing deposits | 34,097,774 | 105,038 | 1.25 | 53,454,285 | 85,562 | 0.65 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 251,946 | 53 | 0.09 | 205,765 | 37 | 0.07 | ||||||||||||||||||
Commercial paper | 721,416 | 1,592 | 0.89 | 576,429 | 240 | 0.17 | ||||||||||||||||||
Other borrowed funds (9) | 5,083,086 | 11,477 | 0.92 | 713,687 | 1,202 | 0.68 | ||||||||||||||||||
Medium- and long-term debt | 4,743,352 | 27,529 | 2.35 | 4,560,180 | 26,241 | 2.33 | ||||||||||||||||||
Trust notes | 13,922 | 238 | 6.84 | 13,475 | 268 | 7.95 | ||||||||||||||||||
Total borrowed funds | 10,813,722 | 40,889 | 1.53 | 6,069,536 | 27,988 | 1.87 | ||||||||||||||||||
Total interest bearing liabilities | 44,911,496 | 145,927 | 1.32 | 59,523,821 | 113,550 | 0.77 | ||||||||||||||||||
Noninterest bearing deposits | 12,535,399 | 14,383,860 | ||||||||||||||||||||||
Other liabilities | 2,289,392 | 1,276,119 | ||||||||||||||||||||||
Total liabilities | 59,736,287 | 75,183,800 | ||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
UNBC Stockholder's equity | 7,336,212 | 9,532,428 | ||||||||||||||||||||||
Noncontrolling interests | - | 93,881 | ||||||||||||||||||||||
Total equity | 7,336,212 | 9,626,309 | ||||||||||||||||||||||
Total liabilities and equity | $ | 67,072,499 | $ | 84,810,109 | ||||||||||||||||||||
Reported Net Interest Income/Margin | ||||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 562,620 | 3.79 | % | 576,794 | 2.95 | % | ||||||||||||||||||
Less: taxable-equivalent adjustment | 2,617 | 2,441 | ||||||||||||||||||||||
Net interest income | $ | 560,003 | $ | 574,353 | ||||||||||||||||||||
Refer to Exhibit 9 for footnote explanations. | ||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||
Exhibit 6 | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
December 31, 2009 | March 31, 2010 | |||||||||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(Dollars in thousands) | Balance | Expense (1) | Rate (1)(2) | Balance | Expense (1) | Rate (1)(2) | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Loans: (8) | ||||||||||||||||||||||||
Commercial, financial and industrial | $ | 15,761,679 | $ | 175,967 | 4.43 | % | $ | 14,954,956 | $ | 161,889 | 4.39 | % | ||||||||||||
Construction | 2,591,025 | 19,556 | 2.99 | 2,308,856 | 16,890 | 2.97 | ||||||||||||||||||
Residential mortgage | 16,675,231 | 229,979 | 5.52 | 16,784,420 | 227,489 | 5.42 | ||||||||||||||||||
Commercial mortgage | 8,268,335 | 87,166 | 4.22 | 8,234,255 | 86,393 | 4.20 | ||||||||||||||||||
Consumer | 3,911,899 | 44,100 | 4.47 | 3,915,724 | 42,809 | 4.43 | ||||||||||||||||||
Lease financing | 663,546 | 2,582 | 1.56 | 649,312 | 6,181 | 3.81 | ||||||||||||||||||
Total loans | 47,871,715 | 559,350 | 4.66 | 46,847,523 | 541,651 | 4.65 | ||||||||||||||||||
Securities - taxable | 20,186,074 | 143,992 | 2.85 | 23,504,338 | 142,774 | 2.43 | ||||||||||||||||||
Securities - tax-exempt | 44,780 | 990 | 8.85 | 42,327 | 885 | 8.37 | ||||||||||||||||||
Interest bearing deposits in banks | 6,662,211 | 4,043 | 0.24 | 6,596,843 | 4,055 | 0.25 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 144,599 | 23 | 0.06 | 461,098 | 119 | 0.10 | ||||||||||||||||||
Trading account assets | 891,349 | 434 | 0.19 | 859,727 | 860 | 0.41 | ||||||||||||||||||
Total earning assets | 75,800,728 | 708,832 | 3.73 | 78,311,856 | 690,344 | 3.54 | ||||||||||||||||||
Allowance for loan losses | (1,237,014 | ) | (1,407,252 | ) | ||||||||||||||||||||
Cash and due from banks | 1,257,857 | 1,205,261 | ||||||||||||||||||||||
Premises and equipment, net | 673,721 | 673,907 | ||||||||||||||||||||||
Other assets | 5,469,664 | 6,026,337 | ||||||||||||||||||||||
Total assets | $ | 81,964,956 | $ | 84,810,109 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 37,759,339 | 74,193 | 0.78 | $ | 39,861,094 | 63,079 | 0.64 | ||||||||||||||||
Savings and consumer time | 5,280,596 | 14,422 | 1.08 | 5,971,776 | 11,945 | 0.81 | ||||||||||||||||||
Large time | 7,867,984 | 13,088 | 0.66 | 7,621,415 | 10,538 | 0.56 | ||||||||||||||||||
Total interest bearing deposits | 50,907,919 | 101,703 | 0.79 | 53,454,285 | 85,562 | 0.65 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 137,133 | 24 | 0.07 | 205,765 | 37 | 0.07 | ||||||||||||||||||
Commercial paper | 386,067 | 194 | 0.20 | 576,429 | 240 | 0.17 | ||||||||||||||||||
Other borrowed funds (9) | 313,747 | 613 | 0.78 | 713,687 | 1,202 | 0.68 | ||||||||||||||||||
Medium- and long-term debt | 4,481,900 | 25,648 | 2.27 | 4,560,180 | 26,241 | 2.33 | ||||||||||||||||||
Trust notes | 13,582 | 238 | 7.02 | 13,475 | 268 | 7.95 | ||||||||||||||||||
Total borrowed funds | 5,332,429 | 26,717 | 1.99 | 6,069,536 | 27,988 | 1.87 | ||||||||||||||||||
Total interest bearing liabilities | 56,240,348 | 128,420 | 0.91 | 59,523,821 | 113,550 | 0.77 | ||||||||||||||||||
Noninterest bearing deposits | 14,790,001 | 14,383,860 | ||||||||||||||||||||||
Other liabilities | 1,528,972 | 1,276,119 | ||||||||||||||||||||||
Total liabilities | 72,559,321 | 75,183,800 | ||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
UNBC Stockholder's equity | 9,405,635 | 9,532,428 | ||||||||||||||||||||||
Noncontrolling interests | - | 93,881 | ||||||||||||||||||||||
Total equity | 9,405,635 | 9,626,309 | ||||||||||||||||||||||
Total liabilities and equity | $ | 81,964,956 | $ | 84,810,109 | ||||||||||||||||||||
Reported Net Interest Income/Margin | ||||||||||||||||||||||||
Net interest income/margin (taxable-equivalent basis) | 580,412 | 3.06 | % | 576,794 | 2.95 | % | ||||||||||||||||||
Less: taxable-equivalent adjustment | 2,685 | 2,441 | ||||||||||||||||||||||
Net interest income | $ | 577,727 | $ | 574,353 | ||||||||||||||||||||
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, 2010 from | ||||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | |||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2009 | 2009 | ||||||||||||||||
Service charges on deposit accounts | $ | 71,322 | $ | 72,711 | $ | 66,140 | (7.27 | ) | % | (9.04 | ) | % | |||||||||
Securities gains, net | - | 11,759 | 33,893 | nm | nm | ||||||||||||||||
Trust and investment management fees | 33,907 | 32,454 | 31,420 | (7.33 | ) | (3.19 | ) | ||||||||||||||
Trading account activities | 22,692 | 24,134 | 21,093 | (7.05 | ) | (12.60 | ) | ||||||||||||||
Merchant banking fees | 13,832 | 16,295 | 13,676 | (1.13 | ) | (16.07 | ) | ||||||||||||||
Card processing fees, net | 7,536 | 8,293 | 8,620 | 14.38 | 3.94 | ||||||||||||||||
Brokerage commissions and fees | 8,307 | 8,160 | 8,528 | 2.66 | 4.51 | ||||||||||||||||
Losses on private capital investments, net | (2,121 | ) | (9,519 | ) | (192 | ) | (90.95 | ) | (97.98 | ) | |||||||||||
Other | 19,241 | 20,999 | 26,727 | 38.91 | 27.28 | ||||||||||||||||
Total noninterest income | $ | 174,716 | $ | 185,286 | $ | 209,905 | 20.14 | % | 13.29 | % | |||||||||||
Noninterest expense (Unaudited) | |||||||||||||||||||||
Percentage Change to | |||||||||||||||||||||
For the Three Months Ended | March 31, 2010 from | ||||||||||||||||||||
March 31, | December 31, | March 31, | March 31, | December 31, | |||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2009 | 2009 | ||||||||||||||||
Salaries and other compensation | $ | 188,223 | $ | 220,789 | $ | 224,400 | 19.22 | % | 1.64 | % | |||||||||||
Employee benefits | 55,340 | 40,266 | 55,186 | (0.28 | ) | 37.05 | |||||||||||||||
Salaries and employee benefits | 243,563 | 261,055 | 279,586 | 14.79 | 7.10 | ||||||||||||||||
Net occupancy | 41,921 | 38,793 | 43,380 | 3.48 | 11.82 | ||||||||||||||||
Intangible asset amortization | 40,887 | 40,101 | 31,793 | (22.24 | ) | (20.72 | ) | ||||||||||||||
Regulatory agencies | 17,938 | 32,103 | 29,848 | 66.40 | (7.02 | ) | |||||||||||||||
Outside services | 18,834 | 25,288 | 22,785 | 20.98 | (9.90 | ) | |||||||||||||||
Professional services | 15,938 | 16,981 | 16,361 | 2.65 | (3.65 | ) | |||||||||||||||
Equipment | 15,413 | 16,383 | 15,811 | 2.58 | (3.49 | ) | |||||||||||||||
Software | 15,038 | 17,205 | 14,728 | (2.06 | ) | (14.40 | ) | ||||||||||||||
Low income housing credit investment amortization | 10,166 | 14,825 | 13,526 | 33.05 | (8.76 | ) | |||||||||||||||
Advertising and public relations | 10,621 | 13,354 | 10,165 | (4.29 | ) | (23.88 | ) | ||||||||||||||
Communications | 8,718 | 9,556 | 9,529 | 9.30 | (0.28 | ) | |||||||||||||||
Data processing | 8,575 | 8,658 | 8,110 | (5.42 | ) | (6.33 | ) | ||||||||||||||
Foreclosed asset expense (income) | 886 | 2,315 | (198 | ) | nm | nm | |||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments | 26,000 | 4,000 | (5,000 | ) | nm | nm | |||||||||||||||
Expenses related to consolidated VIEs | - | - | 5,039 | nm | nm | ||||||||||||||||
Privatization-related expense | 26,819 | 4,981 | 5,153 | (80.79 | ) | 3.45 | |||||||||||||||
Other | 20,066 | 23,647 | 23,956 | 19.39 | 1.31 | ||||||||||||||||
Total noninterest expense | $ | 521,383 | $ | 529,245 | $ | 524,572 | 0.61 | % | (0.88 | ) | % | ||||||||||
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 and specific non-GAAP measures as used to compute selected non-GAAP financial ratios. | ||||||||||||
For the three months ended | ||||||||||||
(Dollars in thousands) | March 31, 2009 | December 31, 2009 | March 31, 2010 | |||||||||
Net income (loss) attributable to UNBC | $ | (9,808 | ) | $ | 41,883 | $ | 77,344 | |||||
Privatization-related expense, net of tax | 16,360 | 2,993 | 3,128 | |||||||||
Net accretion and amortization related to fair value adjustments, net of tax | 4,518 | 10,556 | 9,016 | |||||||||
Net income attributable to UNBC, excluding impact of privatization transaction | $ | 11,070 | $ | 55,432 | $ | 89,488 | ||||||
Average total assets | $ | 67,072,499 | $ | 81,964,956 | $ | 84,810,109 | ||||||
Net adjustments related to privatization transaction | 2,621,275 | 2,569,276 | 2,547,358 | |||||||||
Average total assets, excluding impact of privatization transaction | $ | 64,451,224 | $ | 79,395,680 | $ | 82,262,751 | ||||||
Return on average assets (2) | (0.06 | %) | 0.20 | % | 0.37 | % | ||||||
Effect of privatization transaction | 0.13 | % | 0.08 | % | 0.07 | % | ||||||
Return on average assets, excluding impact of privatization transaction | 0.07 | % | 0.28 | % | 0.44 | % | ||||||
Average UNBC stockholder's equity (2) | $ | 7,336,212 | $ | 9,405,635 | $ | 9,532,428 | ||||||
Net adjustments related to privatization transaction | 2,416,165 | 2,416,677 | 2,412,648 | |||||||||
Average UNBC stockholder's equity, excluding impact of privatization transaction | $ | 4,920,047 | $ | 6,988,958 | $ | 7,119,780 | ||||||
Return on average UNBC stockholder's equity | (0.54 | %) | 1.77 | % | 3.29 | % | ||||||
Effect of privatization transaction | 1.45 | % | 1.38 | % | 1.81 | % | ||||||
Return on average UNBC stockholder's equity, excluding impact of privatization transaction | 0.91 | % | 3.15 | % | 5.10 | % | ||||||
Noninterest expense | $ | 521,383 | $ | 529,245 | $ | 524,572 | ||||||
Privatization-related expense | 26,819 | 4,981 | 5,153 | |||||||||
Amortization related to fair value adjustments | 42,542 | 39,743 | 33,740 | |||||||||
Noninterest expense, excluding impact of privatization transaction | $ | 452,022 | $ | 484,521 | $ | 485,679 | ||||||
Total revenue | $ | 737,336 | $ | 765,698 | $ | 786,699 | ||||||
Accretion related to fair value adjustments | 34,977 | 21,799 | 18,889 | |||||||||
Total revenue, excluding impact of privatization transaction | $ | 702,359 | $ | 743,899 | $ | 767,810 | ||||||
Efficiency ratio (3) | 65.69 | % | 66.36 | % | 64.98 | % | ||||||
Effect of privatization transaction | (6.61 | %) | (4.07 | %) | (3.47 | %) | ||||||
Efficiency ratio, excluding impact of privatization transaction | 59.08 | % | 62.29 | % | 61.51 | % | ||||||
Refer to Exhibit 9 for footnote explanations. | ||||||||||||
UnionBanCal Corporation and Subsidiaries | |||
Footnotes | |||
(1) | Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent. | ||
(2) | Annualized. | ||
(3) | The efficiency ratio is noninterest expense, excluding foreclosed asset expense (income), the provision for losses on off-balance sheet commitments, low income housing credit (LIHC) investment amortization expense and expenses of the consolidated VIEs, as a percentage of net interest income (taxable-equivalent basis) and noninterest income. | ||
(4) | The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible equity (UNBC stockholder's equity less goodwill and intangible assets net of related deferred taxes) divided by tangible assets (total assets less goodwill and intangible assets net of related deferred taxes). The methodology of determining tangible common equity may differ among companies. The tangible common equity ratio has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. | ||
(5) | The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. | ||
(6) | Estimated as of March 31, 2010. | ||
(7) | The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments. | ||
(8) | 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. | ||
(9) | Includes interest bearing trading liabilities. | ||
(10) | 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. | ||
nm = not meaningful |
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