Exhibit 99.1
UnionBanCal Corporation Reports Third Quarter Net Income of $170 Million
Third Quarter Highlights:
- Net income was $170 million, compared with net loss of $17 million a year earlier, and net income of $154 million in second quarter 2010.
- Total provision for credit losses was zero, down from $320 million prior year, and $45 million prior quarter.
- Net interest margin was 3.33 percent, up 2 basis points from prior year, and up 24 basis points from prior quarter.
- Capital levels improved in the quarter:
- Tangible common equity ratio was 9.59 percent at September 30, 2010, versus 8.81 percent at June 30, 2010.
- Tier 1 common capital ratio was 12.25 percent at September 30, 2010, versus 11.93 percent at June 30, 2010.
- Tier 1 risk-based capital ratio was 12.27 percent at September 30, 2010, versus 11.95 percent at June 30, 2010.
SAN FRANCISCO--(BUSINESS WIRE)--October 28, 2010--UnionBanCal Corporation (the Company or UB) today reported third quarter 2010 net income of $170 million, compared with net loss of $17 million a year earlier, and net income of $154 million in second quarter 2010. In sequential quarters, pre-tax, pre-provision income increased $13 million, or 5 percent.
Summary of Third Quarter Results
Third Quarter Total Revenue and Net Interest Income
For third quarter 2010, total revenue (taxable-equivalent net interest income plus noninterest income) was $839 million, up $90 million, or 12 percent, compared with third quarter 2009. Net interest income increased 10 percent, and noninterest income increased 19 percent.
Net interest income for third quarter 2010 was $621 million, up $56 million, or 10 percent, compared with third quarter 2009, primarily reflecting the impact of a $12 billion increase in average securities and lower rates paid on interest bearing deposits, partially offset by the impact of lower yields on the securities portfolio.
Average total loans decreased $660 million, or 1 percent, compared with third quarter 2009. Excluding FDIC covered loans, average commercial, financial and industrial loans declined $2.2 billion, or 13 percent, and average construction loans declined $0.8 billion, or 30 percent. Average FDIC covered loans increased $1.8 billion due to the acquisition of the Frontier Bank and Tamalpais Bank loan portfolios in April 2010. Average interest bearing deposits increased $4.4 billion, or 10 percent, and average noninterest bearing deposits increased $960 million, or 7 percent. The growth in average total deposits reflected deposit-gathering initiatives in both the retail and corporate lines of business, as well as the assumption of Frontier Bank and Tamalpais Bank deposits.
The net interest margin was 3.33 percent for third quarter 2010, up 2 basis points from third quarter 2009. The margin benefited from a favorable loan mix change due to the addition of FDIC covered loans. Lower yields on securities were offset by lower rates on liabilities, while lower interest bearing deposits in banks were offset by higher securities balances.
The annualized average all-in cost of funds was 0.55 percent in third quarter 2010, compared with 0.79 percent in third quarter 2009. The Company’s average loan-to-deposit ratio was 74 percent in third quarter 2010, compared with 82 percent in third quarter 2009.
Compared with second quarter 2010, total revenue decreased 1 percent, with net interest income up 3 percent and noninterest income down 11 percent. Average total loans increased $278 million, or 0.6 percent, primarily due to the full quarter impact of the acquisition of the loan portfolios of Frontier Bank and Tamalpais Bank. Average interest bearing deposits decreased $4 billion, primarily due to planned deposit runoff resulting from targeted rate reductions. Average noninterest bearing deposits increased $621 million, or 4 percent. The net interest margin increased 24 basis points, from 3.09 percent in second quarter 2010, to 3.33 percent in third quarter 2010, primarily due to the planned runoff of interest bearing deposits, lower average deposit rates and higher average loan yields.
Third Quarter Noninterest Income and Noninterest Expense
For third quarter 2010, noninterest income was $218 million, up $34 million, or 19 percent, from the same quarter a year ago. The increase was primarily due to a $21 million increase in fees from trading account activities, which was primarily attributable to higher fees from interest rate derivatives activities; a $4 million increase in merchant banking fees; and a $21 million increase in other noninterest income. These increases were partially offset by a $12 million decrease in service charges on deposit accounts, reflecting lower overdraft volumes. The increase in other noninterest income was primarily due to $13 million of accretion income from indemnification assets associated with the Frontier Bank and Tamalpais Bank acquisitions.
Noninterest income decreased $26 million, or 11 percent, compared with second quarter 2010, primarily due to a $15 million decrease in gains on the sale of securities and a $7 million decrease in other noninterest income.
Noninterest expense for third quarter 2010 was $563 million, up $57 million, or 11 percent, compared with third quarter 2009, with $37 million of the increase attributable to the Frontier Bank and Tamalpais Bank acquisitions. Salaries and employee benefits expense increased $59 million, in part due to an increase in employee count due to the acquisitions. Professional and outside services expense increased $14 million, primarily due to expenses related to the acquisitions. Expenses related to the Company’s 2008 privatization transaction, which are classified in intangible asset amortization expense and other noninterest expense, decreased $16 million. The provision for losses on off-balance sheet commitments declined $14 million.
Noninterest expense for third quarter decreased $22 million, or 4 percent, compared with second quarter 2010. Salaries and employee benefits expense decreased $27 million. The provision for losses on off-balance sheet commitments declined $9 million. Expenses attributable to the Frontier Bank and Tamalpais Bank acquisitions increased $11 million.
Balance Sheet
At September 30, 2010, the Company had total assets of $80 billion, up $1.7 billion, or 2 percent, compared with September 30, 2009, and down $4.5 billion, or 5 percent, compared with June 30, 2010. Total securities at September 30, 2010, were $20 billion, down $3.4 billion, or 15 percent, compared with June 30, 2010, as planned deposit runoff was offset in part by securities sales and maturities.
At September 30, 2010, total deposits were $62 billion, up $0.8 billion, or 1.4 percent, compared with September 30, 2009, and down $5 billion, or 7 percent, compared with June 30, 2010. Core deposits at period-end were $51 billion, up $0.5 billion, or 1 percent, compared with September 30, 2009, and down $2 billion, or 4 percent, compared with June 30, 2010. At September 30, 2010, the Company’s loan-to-deposit ratio was 78 percent, down from 79 percent at September 30, 2009, and up from 73 percent at June 30, 2010.
Credit Quality
The total provision for credit losses was zero, down from $45 million for second quarter 2010, as overall asset quality continued to stabilize. Nonperforming assets, excluding FDIC covered assets, declined $178 million and net charge-offs declined $4 million compared with prior quarter.
Excluding FDIC covered assets, nonperforming assets were $1.20 billion, or 1.54 percent of total assets at September 30, 2010, compared with $1.38 billion, or 1.68 percent of total assets, at June 30, 2010, and $1.37 billion, or 1.75 percent of total assets, at September 30, 2009.
Net charge-offs for third quarter 2010 were $89 million, down from $94 million for second quarter 2010. As a percent of average total loans, excluding FDIC covered assets, net charge-offs for third quarter 2010 were 0.77 percent annualized, and 0.81 percent annualized for second quarter 2010. For third quarter 2009, net charge-offs were $137 million, or 1.11 percent annualized of average total loans.
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 third quarter 2010, the provision for loan losses was $8 million and the reversal of provision for losses on off-balance sheet commitments was $8 million, which resulted in a total provision for credit losses of zero.
The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 3.12 percent at September 30, 2010, compared with 3.29 percent at June 30, 2010, and 2.97 percent at September 30, 2009. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 125 percent at September 30, 2010, up from 115 percent at June 30, 2010, and up from 108 percent at September 30, 2009.
Capital
Total stockholder’s equity was $10.1 billion and tangible common equity was $7.4 billion at September 30, 2010. The Company’s tangible common equity ratio was 9.59 percent at September 30, 2010, an increase of 78 basis points compared with 8.81 percent at June 30, 2010. The Tier 1 common capital ratio at September 30, 2010, was 12.25 percent, compared with 11.93 percent at June 30, 2010. The Company’s Tier 1 and total risk-based capital ratios at September 30, 2010, were 12.27 percent and 14.97 percent, respectively.
Non-GAAP Financial Measures
This press release contains certain references to financial measures identified as excluding privatization transaction expenses, foreclosed asset expense (income), provision for (reversal of) losses on off-balance sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated variable interest entities, noninterest expense excluding the impact of the Frontier Bank and Tamalpais Bank acquisitions, or FDIC covered assets or loans, 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, gains or assets. 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 $80 billion at September 30, 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 operated 397 banking offices in California, Washington, Oregon and Texas, as well as two international offices, on September 30, 2010. 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 | September 30, 2010 from | |||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | June 30, | ||||||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||
Results of operations: | ||||||||||||||||||||||||||
Net interest income (1) | $ | 564,296 | $ | 580,412 | $ | 576,794 | $ | 602,775 | $ | 620,639 | 10.0 | % | 3.0 | % | ||||||||||||
Noninterest income | 183,929 | 185,286 | 209,905 | 244,294 | 217,943 | 18.5 | % | (10.8 | %) | |||||||||||||||||
Total revenue | 748,225 | 765,698 | 786,699 | 847,069 | 838,582 | 12.1 | % | (1.0 | %) | |||||||||||||||||
Noninterest expense | 505,815 | 529,245 | 524,572 | 584,200 | 562,619 | 11.2 | % | (3.7 | %) | |||||||||||||||||
Pre-tax, pre-provision income | 242,410 | 236,453 | 262,127 | 262,869 | 275,963 | 13.8 | % | 5.0 | % | |||||||||||||||||
Provision for loan losses | 314,000 | 191,000 | 170,000 | 44,000 | 8,000 | (97.5 | %) | (81.8 | %) | |||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests (1) | (71,590 | ) | 45,453 | 92,127 | 218,869 | 267,963 | nm | 22.4 | % | |||||||||||||||||
Taxable-equivalent adjustment | 3,260 | 2,685 | 2,441 | 2,382 | 2,584 | (20.7 | %) | 8.5 | % | |||||||||||||||||
Income tax expense (benefit) | (57,821 | ) | 885 | 15,401 | 66,264 | 99,388 | nm | 50.0 | % | |||||||||||||||||
Net income (loss) including noncontrolling interests | (17,029 | ) | 41,883 | 74,285 | 150,223 | 165,991 | nm | 10.5 | % | |||||||||||||||||
Deduct: Net loss from noncontrolling interests | - | - | 3,059 | 3,536 | 3,788 | nm | 7.1 | % | ||||||||||||||||||
Net income (loss) attributable to UnionBanCal Corporation (UNBC) | $ | (17,029 | ) | $ | 41,883 | $ | 77,344 | $ | 153,759 | $ | 169,779 | nm | 10.4 | % | ||||||||||||
Balance sheet (end of period): | ||||||||||||||||||||||||||
Total assets | $ | 78,153,207 | $ | 85,598,128 | $ | 85,471,296 | $ | 84,311,683 | $ | 79,826,417 | 2.1 | % | (5.3 | %) | ||||||||||||
Total securities (3) | 19,403,911 | 23,786,547 | 23,412,283 | 23,054,467 | 19,613,815 | 1.1 | % | (14.9 | %) | |||||||||||||||||
Total loans | 48,169,508 | 47,228,508 | 46,721,210 | 48,337,429 | 47,911,109 | (0.5 | %) | (0.9 | %) | |||||||||||||||||
Core deposits (4) | 50,109,655 | 55,687,108 | 53,073,409 | 52,934,521 | 50,596,301 | 1.0 | % | (4.4 | %) | |||||||||||||||||
Total deposits | 60,691,368 | 68,517,653 | 66,581,593 | 66,270,584 | 61,540,546 | 1.4 | % | (7.1 | %) | |||||||||||||||||
Long-term debt | 5,135,193 | 4,225,711 | 4,724,423 | 4,715,822 | 4,457,830 | (13.2 | %) | (5.5 | %) | |||||||||||||||||
UNBC stockholder's equity | 9,475,004 | 9,580,333 | 9,706,081 | 9,941,892 | 10,133,066 | 6.9 | % | 1.9 | % | |||||||||||||||||
Balance sheet (period average): | ||||||||||||||||||||||||||
Total assets | $ | 74,352,649 | $ | 81,964,956 | $ | 84,810,109 | $ | 85,510,707 | $ | 82,265,037 | 10.6 | % | (3.8 | %) | ||||||||||||
Total securities (3) | 10,774,972 | 20,230,854 | 23,546,665 | 23,088,490 | 22,486,682 | nm | (2.6 | %) | ||||||||||||||||||
Total loans | 48,764,826 | 47,871,715 | 46,847,523 | 47,827,078 | 48,104,954 | (1.4 | %) | 0.6 | % | |||||||||||||||||
Earning assets | 68,235,083 | 75,800,728 | 78,311,856 | 78,135,432 | 74,497,629 | 9.2 | % | (4.7 | %) | |||||||||||||||||
Core deposits (4) | 50,246,297 | 53,995,708 | 54,588,331 | 54,380,813 | 52,299,040 | 4.1 | % | (3.8 | %) | |||||||||||||||||
Total deposits | 59,453,936 | 65,697,920 | 67,838,145 | 68,104,408 | 64,822,479 | 9.0 | % | (4.8 | %) | |||||||||||||||||
UNBC stockholder's equity | 7,358,773 | 9,405,635 | 9,532,428 | 9,630,657 | 9,912,847 | 34.7 | % | 2.9 | % | |||||||||||||||||
Performance ratios: | ||||||||||||||||||||||||||
Return on average assets (2) | (0.09 | %) | 0.20 | % | 0.37 | % | 0.72 | % | 0.82 | % | ||||||||||||||||
Return on average UNBC stockholder's equity (2) | (0.92 | %) | 1.77 | % | 3.29 | % | 6.40 | % | 6.80 | % | ||||||||||||||||
Core efficiency ratio (5) | 65.07 | % | 66.36 | % | 64.98 | % | 64.86 | % | 63.69 | % | ||||||||||||||||
Net interest margin (1) (2) | 3.31 | % | 3.06 | % | 2.95 | % | 3.09 | % | 3.33 | % | ||||||||||||||||
Capital ratios: | ||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (8) | 11.60 | % | 11.82 | % | 11.98 | % | 11.95 | % | 12.27 | % | ||||||||||||||||
Total risk-based capital ratio (8) | 14.42 | % | 14.54 | % | 14.70 | % | 14.64 | % | 14.97 | % | ||||||||||||||||
Leverage ratio (8) | 10.39 | % | 9.45 | % | 9.22 | % | 9.23 | % | 9.86 | % | ||||||||||||||||
Tier 1 common capital ratio (7)(8) | 11.58 | % | 11.80 | % | 11.96 | % | 11.93 | % | 12.25 | % | ||||||||||||||||
Tangible common equity ratio (6) | 8.94 | % | 8.29 | % | 8.47 | % | 8.81 | % | 9.59 | % | ||||||||||||||||
Selected financial ratios excluding impact of privatization transaction (12): | ||||||||||||||||||||||||||
From net income (loss) attributable to UNBC: | ||||||||||||||||||||||||||
Return on average assets (2) | (0.03 | %) | 0.28 | % | 0.44 | % | 0.78 | % | 0.89 | % | ||||||||||||||||
Return on average stockholder's equity (2) | (0.45 | %) | 3.15 | % | 5.10 | % | 9.01 | % | 9.43 | % | ||||||||||||||||
Core efficiency ratio (5) | 60.36 | % | 62.29 | % | 61.51 | % | 62.39 | % | 61.13 | % | ||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||
Financial Highlights (Unaudited) | ||||||||||
Exhibit 2 | ||||||||||
Percent Change to | ||||||||||
As of and for the Nine Months Ended | September 30, 2010 from | |||||||||
September 30, | September 30, | September 30, | ||||||||
(Dollars in thousands) | 2009 (1) | 2010 (1) | 2009 | |||||||
Results of operations: | ||||||||||
Net interest income (1) | $ | 1,680,010 | $ | 1,800,208 | 7.2% | |||||
Noninterest income | 541,858 | 672,142 | 24.0% | |||||||
Total revenue | 2,221,868 | 2,472,350 | 11.3% | |||||||
Noninterest expense | 1,559,256 | 1,671,391 | 7.2% | |||||||
Pre-tax, pre-provision income | 662,612 | 800,959 | 20.9% | |||||||
Provision for loan losses | 923,000 | 222,000 | (75.9%) | |||||||
Income (loss) before income taxes and including noncontrolling interests (1) | (260,388 | ) | 578,959 | nm | ||||||
Taxable-equivalent adjustment | 8,625 | 7,407 | (14.1%) | |||||||
Income tax expense (benefit) | (162,169 | ) | 181,053 | nm | ||||||
Net income (loss) including noncontrolling interests | (106,844 | ) | 390,499 | nm | ||||||
Deduct: Net loss from noncontrolling interests | - | 10,383 | nm | |||||||
Net income (loss) attributable to UNBC | $ | (106,844 | ) | $ | 400,882 | nm | ||||
Balance sheet (end of period): | ||||||||||
Total assets | $ | 78,153,207 | $ | 79,826,417 | 2.1% | |||||
Total securities (3) | 19,403,911 | 19,613,815 | 1.1% | |||||||
Total loans | 48,169,508 | 47,911,109 | (0.5%) | |||||||
Core deposits (4) | 50,109,655 | 50,596,301 | 1.0% | |||||||
Total deposits | 60,691,368 | 61,540,546 | 1.4% | |||||||
Long-term debt | 5,135,193 | 4,457,830 | (13.2%) | |||||||
UNBC stockholder's equity | 9,475,004 | 10,133,066 | 6.9% | |||||||
Balance sheet (period average): | ||||||||||
Total assets | $ | 71,000,250 | $ | 84,185,942 | 18.6% | |||||
Total securities (3) | 9,261,342 | 23,036,729 | nm | |||||||
Total loans | 49,366,280 | 47,597,790 | (3.6%) | |||||||
Earning assets | 64,593,827 | 76,967,666 | 19.2% | |||||||
Core deposits (4) | 45,653,114 | 53,747,675 | 17.7% | |||||||
Total deposits | 53,526,802 | 66,910,632 | 25.0% | |||||||
UNBC stockholder's equity | 7,332,747 | 9,693,370 | 32.2% | |||||||
Performance ratios: | ||||||||||
Return on average assets (2) | (0.20 | %) | 0.64 | % | ||||||
Return on average UNBC stockholder's equity (2) | (1.95 | %) | 5.53 | % | ||||||
Core efficiency ratio (5) | 66.34 | % | 64.50 | % | ||||||
Net interest margin (1) (2) | 3.47 | % | 3.12 | % | ||||||
Capital ratios: | ||||||||||
Tier 1 risk-based capital ratio (8) | 11.60 | % | 12.27 | % | ||||||
Total risk-based capital ratio (8) | 14.42 | % | 14.97 | % | ||||||
Leverage ratio (8) | 10.39 | % | 9.86 | % | ||||||
Tier 1 common capital ratio (7)(8) | 11.58 | % | 12.25 | % | ||||||
Tangible common equity ratio (6) | 8.94 | % | 9.59 | % | ||||||
Selected financial ratios excluding impact of privatization transaction (12): | ||||||||||
From net income (loss) attributable to UNBC: | ||||||||||
Return on average assets (2) | (0.12 | %) | 0.70 | % | ||||||
Return on average stockholder's equity (2) | (1.67 | %) | 7.89 | % | ||||||
Core efficiency ratio (5) | 61.14 | % | 61.68 | % | ||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||||
Credit Quality (Unaudited) | ||||||||||||||||||||||||||
Exhibit 3 | ||||||||||||||||||||||||||
Percent Change to | ||||||||||||||||||||||||||
As of and for the Three Months Ended | September 30, 2010 from | |||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | June 30, | ||||||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||
Credit Data: | ||||||||||||||||||||||||||
Provision for loan losses | $ | 314,000 | $ | 191,000 | $ | 170,000 | $ | 44,000 | $ | 8,000 | (97.5 | %) | (81.8 | %) | ||||||||||||
Provision (reversal) for off-balance sheet commitments | 6,000 | 4,000 | (5,000 | ) | 1,000 | (8,000 | ) | nm | nm | |||||||||||||||||
Total provision for credit losses | $ | 320,000 | $ | 195,000 | $ | 165,000 | $ | 45,000 | $ | - | (100.0 | %) | (100.0 | %) | ||||||||||||
Net charge-offs | $ | 136,673 | $ | 94,780 | $ | 119,411 | $ | 93,531 | $ | 89,440 | (34.6 | %) | (4.4 | %) | ||||||||||||
Nonperforming assets | 1,367,691 | 1,349,793 | 1,466,937 | 1,562,804 | 1,509,720 | 10.4 | % | (3.4 | %) | |||||||||||||||||
Credit Ratios: | ||||||||||||||||||||||||||
Allowance for loan losses to: | ||||||||||||||||||||||||||
Total loans | 2.62 | % | 2.87 | % | 3.01 | % | 2.81 | % | 2.67 | % | ||||||||||||||||
Nonaccrual loans | 95.15 | % | 103.03 | % | 99.06 | % | 100.38 | % | 96.79 | % | ||||||||||||||||
Allowances for credit losses to (9) : | ||||||||||||||||||||||||||
Total loans | 2.97 | % | 3.25 | % | 3.38 | % | 3.17 | % | 3.01 | % | ||||||||||||||||
Nonaccrual loans | 108.16 | % | 116.42 | % | 111.11 | % | 113.13 | % | 109.25 | % | ||||||||||||||||
Net charge-offs to average total loans (2) | 1.11 | % | 0.79 | % | 1.03 | % | 0.78 | % | 0.74 | % | ||||||||||||||||
Nonperforming assets to total loans, OREO and distressed loans held for sale | 2.84 | % | 2.86 | % | 3.14 | % | 3.22 | % | 3.14 | % | ||||||||||||||||
Nonperforming assets to total assets | 1.75 | % | 1.58 | % | 1.72 | % | 1.85 | % | 1.89 | % | ||||||||||||||||
Nonaccrual loans to total loans | 2.75 | % | 2.79 | % | 3.04 | % | 2.80 | % | 2.75 | % | ||||||||||||||||
Excluding FDIC covered assets (13): | ||||||||||||||||||||||||||
Allowance for loan losses to: | ||||||||||||||||||||||||||
Total loans | N/A | N/A | N/A | 2.92 | % | 2.76 | % | |||||||||||||||||||
Nonaccrual loans | N/A | N/A | N/A | 102.17 | % | 110.48 | % | |||||||||||||||||||
Allowances for credit losses to (9) : | ||||||||||||||||||||||||||
Total loans | N/A | N/A | N/A | 3.29 | % | 3.12 | % | |||||||||||||||||||
Nonaccrual loans | N/A | N/A | N/A | 115.14 | % | 124.70 | % | |||||||||||||||||||
Net charge-offs to average total loans (2) | N/A | N/A | N/A | 0.81 | % | 0.77 | % | |||||||||||||||||||
Nonperforming assets to total loans, OREO and distressed loans held for sale | N/A | N/A | N/A | 2.97 | % | 2.60 | % | |||||||||||||||||||
Nonperforming assets to total assets | N/A | N/A | N/A | 1.68 | % | 1.54 | % | |||||||||||||||||||
Nonaccrual loans to total loans | N/A | N/A | N/A | 2.86 | % | 2.50 | % | |||||||||||||||||||
Percent Change to | ||||||||||||||||||||||||||
As of and for the Nine Months Ended | September 30, 2010 from | |||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||
(Dollars in thousands) | 2009 | 2010 | 2009 | |||||||||||||||||||||||
Credit Data: |
| |||||||||||||||||||||||||
Provision for loan losses | $ | 923,000 | $ | 222,000 | (75.9%) | |||||||||||||||||||||
Provision for off-balance sheet commitments | 47,000 | (12,000 | ) | nm | ||||||||||||||||||||||
Total provision for credit losses | $ | 970,000 | $ | 210,000 | (78.4%) | |||||||||||||||||||||
Net charge-offs | $ | 404,630 | $ | 302,382 | (25.3%) | |||||||||||||||||||||
Nonperforming assets | 1,367,691 | 1,509,720 | 10.4% | |||||||||||||||||||||||
Credit Ratios: | ||||||||||||||||||||||||||
Net charge-offs to average total loans (2) | 1.10 | % | 0.85 | % | ||||||||||||||||||||||
Nonperforming assets to total assets | 1.75 | % | 1.89 | % | ||||||||||||||||||||||
Excluding FDIC covered assets (13): | ||||||||||||||||||||||||||
Net charge-offs to average total loans (2) | N/A | 0.87 | % | |||||||||||||||||||||||
Nonperforming assets to total assets | N/A | 1.54 | % | |||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||
Exhibit 4 | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2010 | 2010 | |||||||||||||||
Interest Income | ||||||||||||||||||||
Loans | $ | 576,166 | $ | 557,103 | $ | 539,574 | $ | 568,852 | $ | 581,740 | ||||||||||
Securities | 109,279 | 144,623 | 143,336 | 134,591 | 131,955 | |||||||||||||||
Interest bearing deposits in banks | 4,956 | 4,043 | 4,055 | 3,696 | 1,513 | |||||||||||||||
Federal funds sold and securities purchased under resale agreements | 110 | 23 | 119 | 150 | 146 | |||||||||||||||
Trading account assets | 250 | 355 | 819 | 585 | 518 | |||||||||||||||
Total interest income | 690,761 | 706,147 | 687,903 | 707,874 | 715,872 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 101,374 | 101,703 | 85,562 | 78,477 | 69,498 | |||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 41 | 24 | 37 | 41 | 70 | |||||||||||||||
Commercial paper | 355 | 194 | 240 | 289 | 398 | |||||||||||||||
Other borrowed funds | 604 | 613 | 1,202 | 1,172 | 438 | |||||||||||||||
Long-term debt | 27,351 | 25,886 | 26,509 | 27,502 | 27,413 | |||||||||||||||
Total interest expense | 129,725 | 128,420 | 113,550 | 107,481 | 97,817 | |||||||||||||||
Net Interest Income | 561,036 | 577,727 | 574,353 | 600,393 | 618,055 | |||||||||||||||
Provision for loan losses | 314,000 | 191,000 | 170,000 | 44,000 | 8,000 | |||||||||||||||
Net interest income after provision for loan losses | 247,036 | 386,727 | 404,353 | 556,393 | 610,055 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Service charges on deposit accounts | 74,888 | 72,711 | 66,140 | 63,843 | 62,472 | |||||||||||||||
Trust and investment management fees | 34,506 | 32,454 | 31,420 | 34,244 | 33,209 | |||||||||||||||
Trading account activities | 10,513 | 24,134 | 21,093 | 25,379 | 31,906 | |||||||||||||||
Merchant banking fees | 14,601 | 16,295 | 13,676 | 22,223 | 19,011 | |||||||||||||||
Securities gains (losses), net | 12,694 | 11,759 | 33,893 | 27,244 | 10,683 | |||||||||||||||
Brokerage commissions and fees | 8,611 | 8,160 | 8,528 | 10,906 | 10,195 | |||||||||||||||
Card processing fees, net | 8,559 | 8,293 | 8,620 | 12,856 | 9,877 | |||||||||||||||
Other | 19,557 | 11,480 | 26,535 | 47,599 | 40,590 | |||||||||||||||
Total noninterest income | 183,929 | 185,286 | 209,905 | 244,294 | 217,943 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Salaries and employee benefits | 233,981 | 261,055 | 279,586 | 319,691 | 292,736 | |||||||||||||||
Net occupancy and equipment | 60,984 | 55,176 | 59,191 | 63,370 | 65,162 | |||||||||||||||
Professional and outside services | 39,866 | 42,269 | 39,146 | 50,372 | 53,878 | |||||||||||||||
Intangible asset amortization | 40,641 | 40,101 | 31,793 | 30,613 | 30,774 | |||||||||||||||
Regulatory agencies | 30,739 | 32,103 | 29,848 | 30,526 | 29,132 | |||||||||||||||
Provision for (reversal of) losses on off-balance sheet commitments | 6,000 | 4,000 | (5,000 | ) | 1,000 | (8,000 | ) | |||||||||||||
Other | 93,604 | 94,541 | 90,008 | 88,628 | 98,937 | |||||||||||||||
Total noninterest expense | 505,815 | 529,245 | 524,572 | 584,200 | 562,619 | |||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | (74,850 | ) | 42,768 | 89,686 | 216,487 | 265,379 | ||||||||||||||
Income tax expense (benefit) | (57,821 | ) | 885 | 15,401 | 66,264 | 99,388 | ||||||||||||||
Net Income (Loss) including Noncontrolling Interests | (17,029 | ) | 41,883 | 74,285 | 150,223 | 165,991 | ||||||||||||||
Deduct: Net loss from noncontrolling interests | - | - | 3,059 | 3,536 | 3,788 | |||||||||||||||
Net Income (Loss) attributable to UNBC | $ | (17,029 | ) | $ | 41,883 | $ | 77,344 | $ | 153,759 | $ | 169,779 | |||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||
Consolidated Statements of Income (Unaudited) | ||||||||
Exhibit 5 | ||||||||
For the Nine Months Ended | ||||||||
September 30, | ||||||||
(Dollars in thousands) | 2009 | 2010 | ||||||
Interest Income | ||||||||
Loans | $ | 1,762,540 | $ | 1,690,166 | ||||
Securities | 310,561 | 409,882 | ||||||
Interest bearing deposits in banks | 9,406 | 9,264 | ||||||
Federal funds sold and securities purchased under resale agreements | 348 | 415 | ||||||
Trading account assets | 610 | 1,922 | ||||||
Total interest income | 2,083,465 | 2,111,649 | ||||||
Interest Expense | ||||||||
Deposits | 306,598 | 233,537 | ||||||
Federal funds purchased and securities sold under repurchase agreements | 113 | 148 | ||||||
Commercial paper | 2,901 | 927 | ||||||
Other borrowed funds | 17,697 | 2,812 | ||||||
Long-term debt | 84,771 | 81,424 | ||||||
Total interest expense | 412,080 | 318,848 | ||||||
Net Interest Income | 1,671,385 | 1,792,801 | ||||||
Provision for loan losses | 923,000 | 222,000 | ||||||
Net interest income after provision for loan losses | 748,385 | 1,570,801 | ||||||
Noninterest Income | ||||||||
Service charges on deposit accounts | 218,053 | 192,455 | ||||||
Trust and investment management fees | 102,543 | 98,873 | ||||||
Trading account activities | 49,456 | 78,378 | ||||||
Securities gains (losses), net | 12,522 | 71,820 | ||||||
Merchant banking fees | 48,357 | 54,910 | ||||||
Card processing fees, net | 24,219 | 31,353 | ||||||
Brokerage commissions and fees | 25,424 | 29,629 | ||||||
Other | 61,284 | 114,724 | ||||||
Total noninterest income | 541,858 | 672,142 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 710,601 | 892,013 | ||||||
Net occupancy and equipment | 178,142 | 187,723 | ||||||
Professional and outside services | 117,075 | 143,396 | ||||||
Intangible asset amortization | 121,809 | 93,180 | ||||||
Regulatory agencies | 101,513 | 89,506 | ||||||
(Reversal of) provision for losses on off-balance sheet commitments | 47,000 | (12,000 | ) | |||||
Other | 283,116 | 277,573 | ||||||
Total noninterest expense | 1,559,256 | 1,671,391 | ||||||
Income (loss) before income taxes and including noncontrolling interests | (269,013 | ) | 571,552 | |||||
Income tax expense (benefit) | (162,169 | ) | 181,053 | |||||
Net Income (Loss) including Noncontrolling Interests | (106,844 | ) | 390,499 | |||||
Deduct: Net loss from noncontrolling interests | - | 10,383 | ||||||
Net Income (Loss) attributable to UNBC | $ | (106,844 | ) | $ | 400,882 | |||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||
Exhibit 6 | ||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2010 | 2010 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 1,155,497 | $ | 1,198,258 | $ | 1,110,333 | $ | 1,221,462 | $ | 1,172,194 | ||||||||||
Interest bearing deposits in banks (includes $9,991 at March 31, 2010, $13,176 at June 30, 2010 and $9,538 at September 30, 2010 related to consolidated variable interest entities (VIEs)) | 2,659,460 | 6,585,029 | 6,874,338 | 2,873,014 | 2,418,508 | |||||||||||||||
Federal funds sold and securities purchased under resale agreements | 437,328 | 442,552 | 488,520 | 287,698 | 595,328 | |||||||||||||||
Total cash and cash equivalents | 4,252,285 | 8,225,839 | 8,473,191 | 4,382,174 | 4,186,030 | |||||||||||||||
Trading account assets: | ||||||||||||||||||||
Pledged as collateral | 60,816 | 15,168 | 54,380 | 64,106 | 37,301 | |||||||||||||||
Held in portfolio | 879,734 | 710,480 | 775,915 | 1,054,994 | 1,133,640 | |||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Pledged as collateral | - | 2,500 | - | - | - | |||||||||||||||
Held in portfolio | 18,210,574 | 22,556,329 | 22,164,722 | 21,788,581 | 18,327,048 | |||||||||||||||
Securities held to maturity (Fair value: September 30, 2009 $1,269,934; December 31, 2009, $1,457,654; March 31, 2010, $1,500,746; June 30, 2010, $1,433,596; and September 30, 2010, $1,480,896) | 1,193,337 | 1,227,718 | 1,247,561 | 1,265,886 | 1,286,767 | |||||||||||||||
Loans: | ||||||||||||||||||||
Loans, excluding FDIC covered loans | 48,169,508 | 47,228,508 | 46,721,210 | 46,498,887 | 46,217,555 | |||||||||||||||
FDIC covered loans | - | - | - | 1,838,542 | 1,693,554 | |||||||||||||||
Total loans | 48,169,508 | 47,228,508 | 46,721,210 | 48,337,429 | 47,911,109 | |||||||||||||||
Allowance for loan losses | (1,260,307 | ) | (1,357,000 | ) | (1,408,013 | ) | (1,357,869 | ) | (1,276,845 | ) | ||||||||||
Loans, net | 46,909,201 | 45,871,508 | 45,313,197 | 46,979,560 | 46,634,264 | |||||||||||||||
Due from customers on acceptances | 12,842 | 8,514 | 7,788 | 11,446 | 7,407 | |||||||||||||||
Premises and equipment, net | 667,005 | 674,298 | 671,230 | 671,036 | 674,301 | |||||||||||||||
Intangible assets, net | 601,140 | 561,040 | 529,247 | 517,426 | 486,688 | |||||||||||||||
Goodwill | 2,369,326 | 2,369,326 | 2,369,326 | 2,431,583 | 2,431,583 | |||||||||||||||
FDIC indemnification asset | - | - | - | 917,339 | 833,939 | |||||||||||||||
Other assets (includes $297,736 at March 31, 2010, $293,881 at June 30, 2010 and $291,243 at September 30, 2010 related to consolidated VIEs) | 2,996,947 | 3,375,408 | 3,864,739 | 4,227,552 | 3,787,449 | |||||||||||||||
Total assets | $ | 78,153,207 | $ | 85,598,128 | $ | 85,471,296 | $ | 84,311,683 | $ | 79,826,417 | ||||||||||
Liabilities | ||||||||||||||||||||
Noninterest bearing | $ | 14,472,375 | $ | 14,558,989 | $ | 14,389,261 | $ | 15,319,290 | $ | 15,425,621 | ||||||||||
Interest bearing | 46,218,993 | 53,958,664 | 52,192,332 | 50,951,294 | 46,114,925 | |||||||||||||||
Total deposits | 60,691,368 | 68,517,653 | 66,581,593 | 66,270,584 | 61,540,546 | |||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 229,268 | 150,453 | 575,668 | 101,516 | 139,602 | |||||||||||||||
Commercial paper | 423,499 | 888,541 | 799,106 | 610,580 | 701,135 | |||||||||||||||
Other borrowed funds | 164,861 | 591,934 | 833,617 | 286,275 | 136,441 | |||||||||||||||
Trading account liabilities | 715,075 | 538,894 | 736,813 | 815,282 | 995,843 | |||||||||||||||
Acceptances outstanding | 12,842 | 8,514 | 7,788 | 11,446 | 7,407 | |||||||||||||||
Other liabilities (includes $1,675 at March 31, 2010, $1,841 at June 30, 2010 and $2,001 at September 30, 2010 related to consolidated VIEs) | 1,306,097 | 1,096,095 | 1,224,440 | 1,279,916 | 1,441,929 | |||||||||||||||
Long-term debt (includes $7,853 at March 31, 2010, June 30, 2010 and September 30, 2010 related to consolidated VIEs) | 5,135,193 | 4,225,711 | 4,724,423 | 4,715,822 | 4,457,830 | |||||||||||||||
Total liabilities | 68,678,203 | 76,017,795 | 75,483,448 | 74,091,421 | 69,420,733 | |||||||||||||||
Equity | ||||||||||||||||||||
UNBC Stockholder's Equity: | ||||||||||||||||||||
Common stock, par value $1 per share: | ||||||||||||||||||||
Authorized 300,000,000 shares; 136,330,829 shares issued | 136,331 | 136,331 | 136,331 | 136,331 | 136,331 | |||||||||||||||
Additional paid-in capital | 5,195,023 | 5,195,023 | 5,195,023 | 5,195,023 | 5,195,023 | |||||||||||||||
Retained earnings | 4,857,958 | 4,899,841 | 4,977,185 | 5,130,944 | 5,300,723 | |||||||||||||||
Accumulated other comprehensive loss | (714,308 | ) | (650,862 | ) | (602,458 | ) | (520,406 | ) | (499,011 | ) | ||||||||||
Total UNBC stockholder's equity | 9,475,004 | 9,580,333 | 9,706,081 | 9,941,892 | 10,133,066 | |||||||||||||||
Noncontrolling interests | - | - | 281,767 | 278,370 | 272,618 | |||||||||||||||
Total equity | 9,475,004 | 9,580,333 | 9,987,848 | 10,220,262 | 10,405,684 | |||||||||||||||
Total liabilities and equity | $ | 78,153,207 | $ | 85,598,128 | $ | 85,471,296 | $ | 84,311,683 | $ | 79,826,417 | ||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||
Loans and Nonperforming Assets (Unaudited) | |||||||||||||||
Exhibit 7 | |||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||
(Dollars in millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||
Loans (period end) | |||||||||||||||
Loans held for investment, excluding FDIC covered loans: | |||||||||||||||
Commercial, financial and industrial | $ | 15,995 | $ | 15,258 | $ | 14,870 | $ | 14,675 | $ | 14,650 | |||||
Construction | 2,692 | 2,429 | 2,151 | 2,114 | 1,850 | ||||||||||
Residential mortgage | 16,576 | 16,716 | 16,893 | 17,089 | 17,295 | ||||||||||
Commercial mortgage | 8,320 | 8,246 | 8,249 | 8,062 | 7,893 | ||||||||||
Consumer | 3,903 | 3,917 | 3,914 | 3,914 | 3,890 | ||||||||||
Lease financing | 659 | 654 | 641 | 642 | 635 | ||||||||||
Total loans held for investment, excluding FDIC loans | 48,145 | 47,220 | 46,718 | 46,496 | 46,213 | ||||||||||
Loans held for sale | 25 | 9 | 3 | 3 | 4 | ||||||||||
Total loans, excluding FDIC covered loans | 48,170 | 47,229 | 46,721 | 46,499 | 46,217 | ||||||||||
FDIC covered loans: | |||||||||||||||
Commercial, financial and industrial | - | - | - | 546 | 488 | ||||||||||
Construction | - | - | - | 342 | 320 | ||||||||||
Residential mortgage | - | - | - | 117 | 88 | ||||||||||
Commercial mortgage | - | - | - | 771 | 749 | ||||||||||
Consumer | - | - | - | 62 | 49 | ||||||||||
Total FDIC covered loans | - | - | - | 1,838 | 1,694 | ||||||||||
Total loans | $ | 48,170 | $ | 47,229 | $ | 46,721 | $ | 48,337 | $ | 47,911 | |||||
Nonperforming Assets (period end) | |||||||||||||||
Nonaccrual loans: | |||||||||||||||
Commercial, financial and industrial | $ | 380 | $ | 336 | $ | 251 | $ | 157 | $ | 150 | |||||
Construction | 388 | 335 | 412 | 373 | 244 | ||||||||||
Residential mortgage | 165 | 194 | 217 | 227 | 202 | ||||||||||
Commercial mortgage | 355 | 414 | 501 | 458 | 384 | ||||||||||
Consumer | 21 | 21 | 24 | 25 | 27 | ||||||||||
Restructured - nonaccrual | 16 | 17 | 16 | 89 | 149 | ||||||||||
Total nonaccrual loans, excluding FDIC covered loans | 1,325 | 1,317 | 1,421 | 1,329 | 1,156 | ||||||||||
FDIC covered nonaccrual loans | - | - | - | 24 | 163 | ||||||||||
Total nonaccrual loans | 1,325 | 1,317 | 1,421 | 1,353 | 1,319 | ||||||||||
Distressed loans held for sale | 9 | - | - | - | - | ||||||||||
OREO | 34 | 33 | 45 | 52 | 47 | ||||||||||
FDIC covered OREO | - | - | - | 158 | 144 | ||||||||||
Total nonperforming assets | $ | 1,368 | $ | 1,350 | $ | 1,466 | $ | 1,563 | $ | 1,510 | |||||
Total nonperforming assets, excluding FDIC covered assets | $ | 1,368 | $ | 1,350 | $ | 1,466 | $ | 1,381 | $ | 1,203 | |||||
Loans 90 days or more past due and still accruing (14) | $ | 5 | $ | 5 | $ | 15 | $ | 6 | $ | 17 | |||||
Restructured loans that are still accruing | $ | 2 | $ | 4 | $ | 7 | $ | 9 | $ | 25 | |||||
Refer to Exhibit 13 for footnote explanations. | |||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Allowance for Credit Losses (Unaudited) | ||||||||||||||||||||
Exhibit 8 | ||||||||||||||||||||
As of and for the Three Months Ended | ||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2010 | 2010 | |||||||||||||||
Analysis of Allowances for Credit Losses | ||||||||||||||||||||
Beginning balance | $ | 1,081,633 | $ | 1,260,307 | $ | 1,357,000 | $ | 1,408,013 | $ | 1,357,869 | ||||||||||
Provision for loan losses | 314,000 | 191,000 | 170,000 | 44,000 | 8,000 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial, financial and industrial | (77,996 | ) | (45,994 | ) | (67,160 | ) | (29,770 | ) | (37,277 | ) | ||||||||||
Construction | (13,892 | ) | (31,472 | ) | (16,552 | ) | (9,359 | ) | (1,897 | ) | ||||||||||
Residential mortgage | (13,960 | ) | (11,073 | ) | (10,276 | ) | (11,407 | ) | (24,883 | ) | ||||||||||
Commercial mortgage | (26,298 | ) | (18,701 | ) | (31,869 | ) | (50,657 | ) | (27,780 | ) | ||||||||||
Consumer | (11,134 | ) | (10,454 | ) | (9,763 | ) | (10,301 | ) | (10,292 | ) | ||||||||||
Total charge-offs | (143,280 | ) | (117,694 | ) | (135,620 | ) | (111,494 | ) | (102,129 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial, financial and industrial | 6,129 | 21,215 | 13,119 | 8,306 | 4,328 | |||||||||||||||
Construction | - | 1,233 | 2,391 | 7,236 | 6,630 | |||||||||||||||
Residential mortgage | 2 | 3 | 28 | 257 | 89 | |||||||||||||||
Commercial mortgage | 30 | 20 | 236 | 1,699 | 1,244 | |||||||||||||||
Consumer | 446 | 443 | 435 | 465 | 396 | |||||||||||||||
Lease financing | - | - | - | - | 2 | |||||||||||||||
Total recoveries | 6,607 | 22,914 | 16,209 | 17,963 | 12,689 | |||||||||||||||
Net recoveries (charge-offs) | (136,673 | ) | (94,780 | ) | (119,411 | ) | (93,531 | ) | (89,440 | ) | ||||||||||
Other | 1,347 | 473 | 424 | (613 | ) | 416 | ||||||||||||||
Ending balance of allowance for loan losses | 1,260,307 | 1,357,000 | 1,408,013 | 1,357,869 | 1,276,845 | |||||||||||||||
Allowance for off-balance sheet commitment losses | 172,374 | 176,374 | 171,374 | 172,374 | 164,374 | |||||||||||||||
Allowances for credit losses | $ | 1,432,681 | $ | 1,533,374 | $ | 1,579,387 | $ | 1,530,243 | $ | 1,441,219 | ||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||
Exhibit 9 | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, 2009 | September 30, 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: (10) | ||||||||||||||||||||
Commercial, financial and industrial | $ | 16,805,449 | $ | 188,974 | 4.46 | % | $ | 14,628,126 | $ | 176,212 | 4.78 | % | ||||||||
Construction | 2,772,804 | 20,828 | 2.98 | 1,946,412 | 15,290 | 3.12 | ||||||||||||||
Residential mortgage | 16,380,014 | 230,210 | 5.62 | 17,196,030 | 225,937 | 5.26 | ||||||||||||||
Commercial mortgage | 8,261,161 | 88,998 | 4.31 | 8,005,988 | 84,702 | 4.23 | ||||||||||||||
Consumer | 3,882,929 | 44,042 | 4.50 | 3,900,424 | 43,528 | 4.43 | ||||||||||||||
Lease financing | 662,469 | 5,462 | 3.30 | 638,469 | 6,013 | 3.77 | ||||||||||||||
Total loans, excluding FDIC covered loans | 48,764,826 | 578,514 | 4.73 | 46,315,449 | 551,682 | 4.75 | ||||||||||||||
FDIC covered loans | - | - | - | 1,789,505 | 32,238 | 7.17 | ||||||||||||||
Total loans | 48,764,826 | 578,514 | 4.73 | 48,104,954 | 583,920 | 4.84 | ||||||||||||||
Securities - taxable | 10,590,200 | 107,171 | 4.05 | 22,441,990 | 131,368 | 2.34 | ||||||||||||||
Securities - tax-exempt | 184,772 | 2,999 | 6.49 | 44,692 | 918 | 8.21 | ||||||||||||||
Interest bearing deposits in banks | 7,496,380 | 4,956 | 0.26 | 2,406,880 | 1,513 | 0.25 | ||||||||||||||
Federal funds sold and securities purchased under resale agreements | 282,457 | 110 | 0.15 | 389,999 | 146 | 0.15 | ||||||||||||||
Trading account assets | 916,448 | 271 | 0.12 | 1,109,114 | 591 | 0.21 | ||||||||||||||
Total earning assets | 68,235,083 | 694,021 | 4.06 | 74,497,629 | 718,456 | 3.85 | ||||||||||||||
Allowance for loan losses | (1,044,533 | ) | (1,374,656 | ) | ||||||||||||||||
Cash and due from banks | 1,135,794 | 1,184,365 | ||||||||||||||||||
Premises and equipment, net | 668,699 | 671,632 | ||||||||||||||||||
Other assets | 5,357,606 | 7,286,067 | ||||||||||||||||||
Total assets | $ | 74,352,649 | $ | 82,265,037 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Transaction accounts | $ | 33,064,944 | 72,837 | 0.87 | $ | 32,722,785 | 33,335 | 0.40 | ||||||||||||
Savings and consumer time | 4,486,545 | 12,572 | 1.11 | 7,944,796 | 16,605 | 0.83 | ||||||||||||||
Large time | 7,430,960 | 15,965 | 0.85 | 8,722,935 | 19,558 | 0.89 | ||||||||||||||
Total interest bearing deposits | 44,982,449 | 101,374 | 0.89 | 49,390,516 | 69,498 | 0.56 | ||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 169,267 | 41 | 0.09 | 167,652 | 70 | 0.17 | ||||||||||||||
Commercial paper | 472,246 | 355 | 0.30 | 661,913 | 398 | 0.24 | ||||||||||||||
Other borrowed funds (11) | 262,441 | 604 | 0.91 | 196,474 | 438 | 0.88 | ||||||||||||||
Long-term debt | 5,098,821 | 27,112 | 2.11 | 4,514,261 | 27,078 | 2.38 | ||||||||||||||
Trust notes | 13,696 | 239 | 6.96 | 13,408 | 335 | 10.00 | ||||||||||||||
Total borrowed funds | 6,016,471 | 28,351 | 1.87 | 5,553,708 | 28,319 | 2.02 | ||||||||||||||
Total interest bearing liabilities | 50,998,920 | 129,725 | 1.01 | 54,944,224 | 97,817 | 0.71 | ||||||||||||||
Noninterest bearing deposits | 14,471,487 | 15,431,963 | ||||||||||||||||||
Other liabilities | 1,523,469 | 1,697,695 | ||||||||||||||||||
Total liabilities | 66,993,876 | 72,073,882 | ||||||||||||||||||
Equity | ||||||||||||||||||||
UNBC Stockholder's equity | 7,358,773 | 9,912,847 | ||||||||||||||||||
Noncontrolling interests | - | 278,308 | ||||||||||||||||||
Total equity | 7,358,773 | 10,191,155 | ||||||||||||||||||
Total liabilities and equity | $ | 74,352,649 | $ | 82,265,037 | ||||||||||||||||
Net interest income/spread (taxable-equivalent basis) | 564,296 | 3.05 | % | 620,639 | 3.14 | % | ||||||||||||||
Impact of noninterest bearing sources | 0.26 | 0.19 | ||||||||||||||||||
Net interest margin | 3.31 | 3.33 | ||||||||||||||||||
Less: taxable-equivalent adjustment | 3,260 | 2,584 | ||||||||||||||||||
Net interest income | $ | 561,036 | $ | 618,055 | ||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||
Exhibit 10 | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
June 30, 2010 | September 30, 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: (10) | ||||||||||||||||||||
Commercial, financial and industrial | $ | 14,586,256 | $ | 167,566 | 4.61 | % | $ | 14,628,126 | $ | 176,212 | 4.78 | % | ||||||||
Construction | 2,145,010 | 15,570 | 2.91 | 1,946,412 | 15,290 | 3.12 | ||||||||||||||
Residential mortgage | 16,984,464 | 226,871 | 5.34 | 17,196,030 | 225,937 | 5.26 | ||||||||||||||
Commercial mortgage | 8,179,760 | 85,809 | 4.20 | 8,005,988 | 84,702 | 4.23 | ||||||||||||||
Consumer | 3,919,221 | 43,049 | 4.41 | 3,900,424 | 43,528 | 4.43 | ||||||||||||||
Lease financing | 640,843 | 6,214 | 3.88 | 638,469 | 6,013 | 3.77 | ||||||||||||||
Total loans, excluding FDIC covered loans | 46,455,554 | 545,079 | 4.70 | 46,315,449 | 551,682 | 4.75 | ||||||||||||||
FDIC covered loans | 1,371,524 | 25,796 | 7.54 | 1,789,505 | 32,238 | 7.17 | ||||||||||||||
Total loans | 47,827,078 | 570,875 | 4.78 | 48,104,954 | 583,920 | 4.84 | ||||||||||||||
Securities - taxable | 23,043,696 | 134,000 | 2.33 | 22,441,990 | 131,368 | 2.34 | ||||||||||||||
Securities - tax-exempt | 44,794 | 924 | 8.25 | 44,692 | 918 | 8.21 | ||||||||||||||
Interest bearing deposits in banks | 5,920,479 | 3,696 | 0.25 | 2,406,880 | 1,513 | 0.25 | ||||||||||||||
Federal funds sold and securities purchased under resale agreements | 391,521 | 150 | 0.15 | 389,999 | 146 | 0.15 | ||||||||||||||
Trading account assets | 907,864 | 611 | 0.27 | 1,109,114 | 591 | 0.21 | ||||||||||||||
Total earning assets | 78,135,432 | 710,256 | 3.64 | 74,497,629 | 718,456 | 3.85 | ||||||||||||||
Allowance for loan losses | (1,459,394 | ) | (1,374,656 | ) | ||||||||||||||||
Cash and due from banks | 1,202,081 | 1,184,365 | ||||||||||||||||||
Premises and equipment, net | 672,285 | 671,632 | ||||||||||||||||||
Other assets | 6,960,303 | 7,286,067 | ||||||||||||||||||
Total assets | $ | 85,510,707 | $ | 82,265,037 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Transaction accounts | $ | 37,607,938 | 48,001 | 0.51 | $ | 32,722,785 | 33,335 | 0.40 | ||||||||||||
Savings and consumer time | 7,420,779 | 15,358 | 0.83 | 7,944,796 | 16,605 | 0.83 | ||||||||||||||
Large time | 8,265,102 | 15,118 | 0.73 | 8,722,935 | 19,558 | 0.89 | ||||||||||||||
Total interest bearing deposits | 53,293,819 | 78,477 | 0.59 | 49,390,516 | 69,498 | 0.56 | ||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 138,242 | 41 | 0.12 | 167,652 | 70 | 0.17 | ||||||||||||||
Commercial paper | 573,178 | 289 | 0.20 | 661,913 | 398 | 0.24 | ||||||||||||||
Other borrowed funds (11) | 683,388 | 1,172 | 0.69 | 196,474 | 438 | 0.88 | ||||||||||||||
Long-term debt | 4,718,371 | 27,175 | 2.31 | 4,514,261 | 27,078 | 2.38 | ||||||||||||||
Trust notes | 13,431 | 327 | 9.74 | 13,408 | 335 | 10.00 | ||||||||||||||
Total borrowed funds | 6,126,610 | 29,004 | 1.90 | 5,553,708 | 28,319 | 2.02 | ||||||||||||||
Total interest bearing liabilities | 59,420,429 | 107,481 | 0.73 | 54,944,224 | 97,817 | 0.71 | ||||||||||||||
Noninterest bearing deposits | 14,810,589 | 15,431,963 | ||||||||||||||||||
Other liabilities | 1,367,302 | 1,697,695 | ||||||||||||||||||
Total liabilities | 75,598,320 | 72,073,882 | ||||||||||||||||||
Equity | ||||||||||||||||||||
UNBC Stockholder's equity | 9,630,657 | 9,912,847 | ||||||||||||||||||
Noncontrolling interests | 281,730 | 278,308 | ||||||||||||||||||
Total equity | 9,912,387 | 10,191,155 | ||||||||||||||||||
Total liabilities and equity | $ | 85,510,707 | $ | 82,265,037 | ||||||||||||||||
Net interest income/spread (taxable-equivalent basis) | 602,775 | 2.91 | % | 620,639 | 3.14 | % | ||||||||||||||
Impact of noninterest bearing sources | 0.18 | 0.19 | ||||||||||||||||||
Net interest margin | 3.09 | 3.33 | ||||||||||||||||||
Less: taxable-equivalent adjustment | 2,382 | 2,584 | ||||||||||||||||||
Net interest income | $ | 600,393 | $ | 618,055 | ||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||
Exhibit 11 | ||||||||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||
September 30, 2009 | September 30, 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: (10) | ||||||||||||||||||||
Commercial, financial and industrial | $ | 17,737,052 | $ | 577,321 | 4.35 | % | $ | 14,721,915 | $ | 505,667 | 4.59 | % | ||||||||
Construction | 2,765,178 | 60,747 | 2.94 | 2,132,098 | 47,750 | 2.99 | ||||||||||||||
Residential mortgage | 16,132,655 | 694,917 | 5.74 | 16,989,812 | 680,297 | 5.34 | ||||||||||||||
Commercial mortgage | 8,256,389 | 283,076 | 4.57 | 8,139,165 | 256,904 | 4.21 | ||||||||||||||
Consumer | 3,816,050 | 134,697 | 4.72 | 3,911,734 | 129,386 | 4.42 | ||||||||||||||
Lease financing | 658,956 | 18,713 | 3.79 | 642,835 | 18,408 | 3.82 | ||||||||||||||
Total loans, excluding FDIC covered loans | 49,366,280 | 1,769,471 | 4.78 | 46,537,559 | 1,638,412 | 4.70 | ||||||||||||||
FDIC covered loans | - | - | - | 1,060,231 | 58,034 | 7.31 | ||||||||||||||
Total loans | 49,366,280 | 1,769,471 | 4.78 | 47,597,790 | 1,696,446 | 4.76 | ||||||||||||||
Securities - taxable | 9,166,395 | 307,165 | 4.47 | 22,992,783 | 408,142 | 2.37 | ||||||||||||||
Securities - tax-exempt | 94,947 | 5,040 | 7.08 | 43,946 | 2,727 | 8.27 | ||||||||||||||
Interest bearing deposits in banks | 4,664,896 | 9,406 | 0.27 | 4,959,386 | 9,264 | 0.25 | ||||||||||||||
Federal funds sold and securities purchased under resale agreements | 227,832 | 348 | 0.20 | 413,946 | 415 | 0.13 | ||||||||||||||
Trading account assets | 1,073,477 | 660 | 0.08 | 959,815 | 2,062 | 0.29 | ||||||||||||||
Total earning assets | 64,593,827 | 2,092,090 | 4.32 | 76,967,666 | 2,119,056 | 3.67 | ||||||||||||||
Allowance for loan losses | (865,208 | ) | (1,413,666 | ) | ||||||||||||||||
Cash and due from banks | 1,244,981 | 1,197,159 | ||||||||||||||||||
Premises and equipment, net | 670,884 | 672,600 | ||||||||||||||||||
Other assets | 5,355,766 | 6,762,183 | ||||||||||||||||||
Total assets | $ | 71,000,250 | $ | 84,185,942 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Transaction accounts | $ | 28,397,683 | 200,483 | 0.94 | $ | 36,704,458 | 144,415 | 0.53 | ||||||||||||
Savings and consumer time | 4,394,706 | 42,057 | 1.28 | 7,119,678 | 43,908 | 0.82 | ||||||||||||||
Large time | 7,090,250 | 64,058 | 1.21 | 8,207,186 | 45,214 | 0.74 | ||||||||||||||
Total interest bearing deposits | 39,882,639 | 306,598 | 1.03 | 52,031,322 | 233,537 | 0.60 | ||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 194,562 | 113 | 0.08 | 170,413 | 148 | 0.12 | ||||||||||||||
Commercial paper | 586,754 | 2,901 | 0.66 | 604,153 | 927 | 0.21 | ||||||||||||||
Other borrowed funds (11) | 2,472,324 | 17,697 | 0.96 | 529,289 | 2,812 | 0.71 | ||||||||||||||
Long-term debt | 4,994,660 | 84,056 | 2.25 | 4,597,436 | 80,494 | 2.34 | ||||||||||||||
Trust notes | 13,808 | 715 | 6.90 | 13,438 | 930 | 9.23 | ||||||||||||||
Total borrowed funds | 8,262,108 | 105,482 | 1.71 | 5,914,729 | 85,311 | 1.93 | ||||||||||||||
Total interest bearing liabilities | 48,144,747 | 412,080 | 1.14 | 57,946,051 | 318,848 | 0.74 | ||||||||||||||
Noninterest bearing deposits | 13,644,163 | 14,879,310 | ||||||||||||||||||
Other liabilities | 1,878,593 | 1,448,563 | ||||||||||||||||||
Total liabilities | 63,667,503 | 74,273,924 | ||||||||||||||||||
Equity | ||||||||||||||||||||
UNBC Stockholder's equity | 7,332,747 | 9,693,370 | ||||||||||||||||||
Noncontrolling interests | - | 218,648 | ||||||||||||||||||
Total equity | 7,332,747 | 9,912,018 | ||||||||||||||||||
Total liabilities and equity | $ | 71,000,250 | $ | 84,185,942 | ||||||||||||||||
Net interest income/spread (taxable-equivalent basis) | 1,680,010 | 3.18 | % | 1,800,208 | 2.93 | % | ||||||||||||||
Impact of noninterest bearing sources | 0.29 | 0.19 | ||||||||||||||||||
Net interest margin | 3.47 | 3.12 | ||||||||||||||||||
Less: taxable-equivalent adjustment | 8,625 | 7,407 | ||||||||||||||||||
Net interest income | $ | 1,671,385 | $ | 1,792,801 | ||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||||||||||||||
Exhibit 12 | ||||||||||||||||||||||||||||
The following table presents a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios. | ||||||||||||||||||||||||||||
As of and for the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||
Net income (loss) attributable to UNBC | $ | (17,029 | ) | $ | 41,883 | $ | 77,344 | $ | 153,759 | $ | 169,779 | $ | (106,844 | ) | $ | 400,882 | ||||||||||||
Privatization-related expense, net of tax | (460 | ) | 2,993 | 3,128 | 259 | 266 | 20,414 | 3,653 | ||||||||||||||||||||
Net accretion and amortization related to privatization-related fair value adjustments, net of tax | 11,832 | 10,556 | 9,016 | 8,170 | 8,358 | 25,115 | 25,544 | |||||||||||||||||||||
Net income (loss) attributable to UNBC, excluding impact of privatization transaction | $ | (5,657 | ) | $ | 55,432 | $ | 89,488 | $ | 162,188 | $ | 178,403 | $ | (61,315 | ) | $ | 430,079 | ||||||||||||
Average total assets | $ | 74,352,649 | $ | 81,964,956 | $ | 84,810,109 | $ | 85,510,707 | $ | 82,265,037 | $ | 71,000,250 | $ | 84,185,942 | ||||||||||||||
Net adjustments related to privatization transaction | 2,590,543 | 2,569,276 | 2,547,358 | 2,528,555 | 2,508,603 | 2,607,236 | 2,528,030 | |||||||||||||||||||||
Average total assets, excluding impact of privatization transaction | $ | 71,762,106 | $ | 79,395,680 | $ | 82,262,751 | $ | 82,982,152 | $ | 79,756,434 | $ | 68,393,014 | $ | 81,657,912 | ||||||||||||||
Return on average assets (2) | (0.09 | %) | 0.20 | % | 0.37 | % | 0.72 | % | 0.82 | % | (0.20 | %) | 0.64 | % | ||||||||||||||
Return on average assets, excluding impact of privatization transaction (2) | (0.03 | %) | 0.28 | % | 0.44 | % | 0.78 | % | 0.89 | % | (0.12 | %) | 0.70 | % | ||||||||||||||
Average UNBC stockholder's equity | $ | 7,358,773 | $ | 9,405,635 | $ | 9,532,428 | $ | 9,630,657 | $ | 9,912,847 | $ | 7,332,747 | $ | 9,693,370 | ||||||||||||||
Net adjustments related to privatization transaction | 2,418,824 | 2,416,677 | 2,412,648 | 2,408,987 | 2,404,883 | 2,410,287 | 2,408,811 | |||||||||||||||||||||
Average UNBC stockholder's equity, excluding impact of privatization transaction | $ | 4,939,949 | $ | 6,988,958 | $ | 7,119,780 | $ | 7,221,670 | $ | 7,507,964 | $ | 4,922,460 | $ | 7,284,559 | ||||||||||||||
Return on average UNBC stockholder's equity (2) | (0.92 | %) | 1.77 | % | 3.29 | % | 6.40 | % | 6.80 | % | (1.95 | %) | 5.53 | % | ||||||||||||||
Return on average UNBC stockholder's equity, excluding impact of privatization transaction (2) | (0.45 | %) | 3.15 | % | 5.10 | % | 9.01 | % | 9.43 | % | (1.67 | %) | 7.89 | % | ||||||||||||||
Noninterest expense | $ | 505,815 | $ | 529,245 | $ | 524,572 | $ | 584,200 | $ | 562,619 | $ | 1,559,256 | $ | 1,671,391 | ||||||||||||||
Less: Foreclosed asset expense (income) | (144 | ) | 2,315 | (198 | ) | 871 | 5,898 | 4,024 | 6,571 | |||||||||||||||||||
Less: Provision for (reversal of) losses on off-balance sheet commitments | 6,000 | 4,000 | (5,000 | ) | 1,000 | (8,000 | ) | 47,000 | (12,000 | ) | ||||||||||||||||||
Less: Low income housing credit investment amortization expense | 13,064 | 14,825 | 13,526 | 14,247 | 13,251 | 34,256 | 41,024 | |||||||||||||||||||||
Less: Expenses of the consolidated VIEs | - | - | 5,039 | 5,825 | 6,238 | - | 17,102 | |||||||||||||||||||||
Less: Merger costs related to acquisitions | - | - | - | 12,819 | 11,177 | - | 23,996 | |||||||||||||||||||||
Net noninterest expense before privatization adjustments (a) | $ | 486,895 | $ | 508,105 | $ | 511,205 | $ | 549,438 | $ | 534,055 | $ | 1,473,976 | $ | 1,594,698 | ||||||||||||||
Privatization-related expense | 6,649 | 4,981 | 5,153 | 426 | 438 | 40,901 | 6,017 | |||||||||||||||||||||
Amortization related to privatization-related fair value adjustments | 42,548 | 39,743 | 33,740 | 32,303 | 32,267 | 126,984 | 98,310 | |||||||||||||||||||||
Net noninterest expense, excluding impact of privatization transaction (b) | $ | 437,698 | $ | 463,381 | $ | 472,312 | $ | 516,709 | $ | 501,350 | $ | 1,306,091 | $ | 1,490,371 | ||||||||||||||
Total revenue (c) | $ | 748,225 | $ | 765,698 | $ | 786,699 | $ | 847,069 | $ | 838,582 | $ | 2,221,868 | $ | 2,472,350 | ||||||||||||||
Accretion related to privatization-related fair value adjustments | 23,060 | 21,799 | 18,889 | 18,845 | 18,500 | 85,616 | 56,234 | |||||||||||||||||||||
Total revenue, excluding impact of privatization transaction (d) | $ | 725,165 | $ | 743,899 | $ | 767,810 | $ | 828,224 | $ | 820,082 | $ | 2,136,252 | $ | 2,416,116 | ||||||||||||||
Core efficiency ratio (a)/(c) (5) | 65.07 | % | 66.36 | % | 64.98 | % | 64.86 | % | 63.69 | % | 66.34 | % | 64.50 | % | ||||||||||||||
Core efficiency ratio, excluding impact of privatization transaction (b)/(d) | 60.36 | % | 62.29 | % | 61.51 | % | 62.39 | % | 61.13 | % | 61.14 | % | 61.68 | % | ||||||||||||||
Total UNBC stockholder's equity | $ | 9,475,004 | $ | 9,580,333 | $ | 9,706,081 | $ | 9,941,892 | $ | 10,133,066 | ||||||||||||||||||
Less: Goodwill | 2,369,326 | 2,369,326 | 2,369,326 | 2,431,583 | 2,431,583 | |||||||||||||||||||||||
Less: Intangible assets | 601,140 | 561,040 | 529,247 | 517,426 | 486,688 | |||||||||||||||||||||||
Less: Deferred tax liabilities related to goodwill and intangible assets | (231,449 | ) | (215,847 | ) | (203,436 | ) | (191,627 | ) | (179,818 | ) | ||||||||||||||||||
Tangible common equity (e) | $ | 6,735,987 | $ | 6,865,814 | $ | 7,010,944 | $ | 7,184,510 | $ | 7,394,613 | ||||||||||||||||||
Tier 1 capital, determined in accordance with regulatory requirements (8) | $ | 7,416,069 | $ | 7,484,516 | $ | 7,581,313 | $ | 7,681,746 | $ | 7,861,362 | ||||||||||||||||||
Less: Trust preferred securities | 13,000 | 13,000 | 13,000 | 13,000 | 13,000 | |||||||||||||||||||||||
Tier 1 common equity (f) | $ | 7,403,069 | $ | 7,471,516 | $ | 7,568,313 | $ | 7,668,746 | $ | 7,848,362 | ||||||||||||||||||
Total assets | $ | 78,153,207 | $ | 85,598,128 | $ | 85,471,296 | $ | 84,311,683 | $ | 79,826,417 | ||||||||||||||||||
Less: Goodwill | 2,369,326 | 2,369,326 | 2,369,326 | 2,431,583 | 2,431,583 | |||||||||||||||||||||||
Less: Intangible assets | 601,140 | 561,040 | 529,247 | 517,426 | 486,688 | |||||||||||||||||||||||
Less: Deferred tax liabilities related to goodwill and intangible assets | (192,569 | ) | (179,589 | ) | (169,263 | ) | (159,438 | ) | (179,818 | ) | ||||||||||||||||||
Tangible assets (g) | $ | 75,375,310 | $ | 82,847,351 | $ | 82,741,986 | $ | 81,522,112 | $ | 77,087,964 | ||||||||||||||||||
Risk-weighted assets, determined in accordance with regulatory requirements (h) (8) | $ | 63,956,189 | $ | 63,298,173 | $ | 63,293,568 | $ | 64,301,375 | $ | 64,078,897 | ||||||||||||||||||
Tangible common equity ratio (e)/(g) (6) | 8.94 | % | 8.29 | % | 8.47 | % | 8.81 | % | 9.59 | % | ||||||||||||||||||
Tier 1 common capital ratio (f)/(h) (8) | 11.58 | % | 11.80 | % | 11.96 | % | 11.93 | % | 12.25 | % | ||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||
Footnotes | ||
Exhibit 13 | ||
(1) | Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent. | |
(2) | Annualized. | |
(3) | Total securities consist of securities available for sale and securities held to maturity. | |
(4) | Core deposits consist of total deposits, excluding brokered deposits and time deposits of $100,000 and over. | |
(5) | The core efficiency ratio is net noninterest expense (noninterest expense excluding foreclosed asset expense (income), the (reversal of) provision for losses on off-balanced sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated VIEs and merger costs related to the acquisitions of certain assets of Frontier Bank and Tamalpais Bank as a percentage of total revenue (net interest income (taxable-equivalent basis) and noninterest income. Please refer to Exhibit 12 for a reconciliation of noninterest expense used in the calculation of the core efficiency ratio. | |
(6) | The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible equity divided by tangible assets. 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. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(7) | 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. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(8) | Estimated as of September 30, 2010. | |
(9) | The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments. | |
(10) | Average balances on loans outstanding include all nonperforming loans and loans held for sale. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield. | |
(11) | Includes interest bearing trading liabilities. | |
(12) | These ratios exclude the impact of the privatization transaction. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(13) | These ratios exclude the impact of the acquired loans and foreclosed assets, which are covered under loss share agreements between Union Bank, N.A. and the Federal Deposit Insurance Corporation. Such agreements are related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank. | |
(14) | Excludes loans totaling $325.7 million that are 90 days or more past due and still accruing at September 30, 2010, which consisted of FDIC covered loans accounted in accordance with the accounting standards for acquired impaired loans. | |
nm = not meaningful | ||
N/A = not applicable for periods prior to the April 2010 Frontier and Tamalpais transactions. |
CONTACT:
UnionBanCal Corporation
Thomas Taggart, 415-765-2249 (Public Relations)
Michelle Crandall, 415-765-2780 (Investor Relations)