Exhibit 99.1
UnionBanCal Corporation Reports Fourth Quarter Net Income of $129 Million
Fourth Quarter Highlights:
- Net income was $129 million, down from $172 million for both the prior quarter and the year-ago quarter.
- Total loans held for investment, excluding FDIC covered loans, at December 31, 2011, were up 5 percent compared with September 30, 2011, and up 13 percent compared with December 31, 2010.
- Total provision for credit losses was $9 million, compared with a benefit of $13 million for the prior quarter, and a benefit of $42 million for the prior-year quarter. However, key asset quality metrics strengthened in fourth quarter. Excluding FDIC covered assets:
- Nonperforming assets at quarter-end were $618 million, or 0.70 percent of total assets, down from $690 million, or 0.83 percent of total assets, prior quarter.
- Allowance for credit losses to nonaccrual loans was 149 percent at quarter-end, up from 132 percent prior quarter.
- Net charge-off ratio was 0.21 percent annualized, down from 0.36 percent annualized prior quarter.
- Tangible common equity ratio was 10.20 percent at December 31, 2011, compared with 10.10 percent at September 30, 2011.
Full Year Highlights:
- Net income was $778 million, up from $573 million prior year.
- Total provision for credit losses was a benefit of $231 million, down from a total provision of $168 million prior year.
- Tangible common equity ratio increased 53 basis points to 10.20 percent at December 31, 2011, compared with 9.67 percent at December 31, 2010.
SAN FRANCISCO--(BUSINESS WIRE)--January 27, 2012--UnionBanCal Corporation (the Company or UB), parent company of San Francisco-based Union Bank, N.A., today reported fourth quarter 2011 results. Net income for fourth quarter was $129 million, down from $172 million for both the prior quarter and the year-ago quarter. The decline in net income compared with the prior quarter was primarily due to higher provision for credit losses as loan growth accelerated and higher noninterest expense.
Effective October 1, 2011, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) transferred its trust company, The Bank of Tokyo-Mitsubishi UFJ Trust Company (BTMUT), to the Company. This transaction increased assets by over $900 million and Tier 1 common capital by over $700 million.
Summary of Fourth Quarter Results
Fourth Quarter Total Revenue and Net Interest Income
For fourth quarter 2011, total revenue (net interest income plus noninterest income) was $791 million, flat compared with the prior quarter. Net interest income increased 6 percent, and noninterest income decreased 18 percent. The net interest margin was 3.29 percent.
Net interest income for fourth quarter 2011 was $640 million, up $34 million, or 6 percent, compared with third quarter 2011. The increase in net interest income was primarily due to growth in average earning assets, particularly securities and total loans (excluding FDIC covered loans). The net interest margin declined 2 basis points compared with third quarter 2011, primarily due to lower yields on securities, partially offset by a decline in low-yielding interest bearing deposits in banks.
Average total loans, excluding FDIC covered loans, increased $2.3 billion, or 5 percent, primarily due to growth in commercial and industrial loans, commercial mortgage loans and residential mortgage loans. Average FDIC covered loans decreased $152 million, or 13 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $1.3 billion, or 7 percent, primarily due to growth in commercial deposits. Average interest bearing deposits increased $2 billion, or 5 percent, primarily reflecting growth in money market accounts and time deposits.
Compared with fourth quarter 2010, total revenue decreased 10 percent, with net interest income up 1 percent and noninterest income down 40 percent. Average total loans, excluding FDIC covered loans, increased $5 billion, or 11 percent, primarily due to growth in commercial and industrial loans, commercial mortgage loans and residential mortgage loans. Average FDIC covered loans decreased $597 million, or 37 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $3.4 billion, or 21 percent. Average interest bearing deposits decreased $2.3 billion, or 5 percent, primarily due to planned deposit runoff resulting from targeted rate reductions. Net interest income increased $9 million compared with the year-ago quarter, primarily due to overall loan growth, largely offset by a decrease in the net interest margin. The net interest margin declined 24 basis points from the year-ago quarter, primarily due to declining yields on loans (excluding FDIC covered loans) and securities, and a higher level of low-yielding interest bearing deposits in banks.
Fourth Quarter Noninterest Income and Noninterest Expense
For fourth quarter 2011, noninterest income was $151 million, down $34 million, or 18 percent, compared with prior quarter. The decrease was primarily due to lower card processing fees, net, which declined due to lower per-transaction fees charged; lower merchant banking fees, which declined due to fewer transactions completed; and lower other noninterest income. Other noninterest income decreased primarily due to a loss on the sale of private capital investments in fourth quarter 2011 and accretion adjustments to the indemnification asset associated with FDIC covered loans.
Noninterest income decreased $100 million, or 40 percent, compared with fourth quarter 2010, primarily due to lower gains on the sale of securities and lower other noninterest income. Other noninterest income declined primarily due to a loss on the sale of private capital investments and an accretion adjustment to the indemnification asset associated with FDIC covered loans, both recorded in fourth quarter 2011.
Noninterest expense for fourth quarter 2011 was $619 million, up $16 million, or 3 percent, compared with third quarter 2011. Intangible asset amortization expense increased $7 million, primarily due to a write-off of intangible assets associated with the privatization of the Company in 2008. The provision for losses on off-balance sheet commitments was $2 million, compared with zero in third quarter 2011.
Noninterest expense for fourth quarter 2011 decreased $82 million, or 12 percent, compared with fourth quarter 2010. The decrease was primarily due to lower regulatory assessments expenses, which resulted from a reduction in assessments for deposit insurance, and lower other noninterest expense. Other noninterest expense declined primarily due to certain reserves for contingencies and an asset impairment charge, all recorded in fourth quarter 2010. The provision for losses on off-balance sheet commitments was $2 million, compared with a benefit of $2 million in fourth quarter 2010.
Taxes
The effective tax rate for fourth quarter 2011 was 24.7 percent, compared with an effective tax rate of 17.0 percent for third quarter 2011. The increase in the effective tax rate was primarily due to non-recurring income tax benefits recorded in third quarter related to a change in estimate to the valuation of FDIC covered assets.
Full Year 2011 Results
For full year 2011, net income was $778 million, compared with net income of $573 million for full year 2010. The $205 million increase in net income was primarily due to the after-tax effect of a $399 million decrease in total provision for credit losses.
Total revenue for full year 2011 was $3.3 billion, a decrease of $53 million, or 2 percent, compared with 2010. Net interest income increased $54 million, or 2 percent. Noninterest income decreased $107 million, or 12 percent, primarily due to lower gains on the sale of securities and accretion adjustments to the indemnification asset associated with FDIC covered loans. Noninterest expense increased $43 million, or 2 percent, primarily due to a $155 million increase in salaries and employee benefits expense. The increase in salaries and employee benefits expense was partially offset by a $57 million decrease in other noninterest expense, primarily due to certain reserves for contingencies and an asset impairment charge, all recorded in 2010, and a $47 million decrease in regulatory assessments expense, primarily due to a reduction in assessments for deposit insurance.
Balance Sheet
At December 31, 2011, the Company had total assets of $89.7 billion, up $5.7 billion, or 7 percent, compared with September 30, 2011, and up $10.6 billion, or 13 percent, compared with December 31, 2010.
At December 31, 2011, total deposits were $64.4 billion, up $4 billion, or 7 percent, compared with September 30, 2011, and up $4.5 billion, or 7 percent, compared with December 31, 2010. Core deposits at December 31, 2011, were $52.8 billion, up $2.1 billion, or 4 percent, compared with September 30, 2011, and up $2.7 billion, or 5 percent, compared with December 31, 2010. At December 31, 2011, the Company’s loan-to-deposit ratio was 83 percent, down from 84 percent at September 30, 2011, due to deposits growing faster than loans, and up from 80 percent at December 31, 2010, due to a combination of loan growth and deposit growth.
Credit Quality
The total provision for credit losses was $9 million for fourth quarter 2011, compared with a benefit of $13 million for third quarter 2011, primarily due to organic growth in the existing loan portfolio. Nonperforming assets, excluding FDIC covered assets, decreased $72 million, or 10 percent, compared with prior quarter, primarily due to loan repayments and charge-offs. Net charge-offs decreased $16 million, or 36 percent, compared with third quarter 2011, primarily due to lower commercial loan charge-offs and higher commercial mortgage loan recoveries.
Excluding FDIC covered assets, nonperforming assets were $618 million, or 0.70 percent of total assets, at December 31, 2011, compared with $690 million, or 0.83 percent of total assets, at September 30, 2011, and $890 million, or 1.15 percent of total assets, at December 31, 2010.
Excluding FDIC covered assets, net charge-offs for fourth quarter 2011 were $29 million, down from $43 million for third quarter 2011. Excluding FDIC covered assets, net charge-offs to average total loans for fourth quarter 2011 were 0.21 percent annualized, down from 0.36 percent annualized for third quarter 2011. For fourth quarter 2010, excluding FDIC covered assets, net charge-offs were $64 million, or 0.54 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 fourth quarter 2011, the provision for loan losses was $7 million and the provision for losses on off-balance sheet commitments was $2 million.
The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 1.67 percent at December 31, 2011, compared with 1.77 percent at September 30, 2011, and 2.85 percent at December 31, 2010. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 149 percent at December 31, 2011, compared with 132 percent at September 30, 2011, and 156 percent at December 31, 2010.
Capital
Total stockholder’s equity was $11.6 billion and tangible common equity was $8.9 billion at December 31, 2011. The Company’s tangible common equity ratio was 10.20 percent at December 31, 2011, up 10 basis points from 10.10 percent at September 30, 2011, and up 53 basis points from 9.67 percent at December 31, 2010. The preliminary Basel I Tier 1 and Tier 1 common capital ratios at December 31, 2011, were in excess of 13 percent. Additionally, the preliminary Basel I Total risk-based capital ratio at December 31, 2011, was in excess of 15 percent.
Non-GAAP Financial Measures
This press release contains certain references to financial measures identified as excluding privatization transaction impact, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, productivity initiative costs, low income housing credit investment amortization expense, expenses of the consolidated variable interest entities, merger costs related to acquisitions, or asset impairment charges, 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 or credits. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. 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. This press release also includes additional capital ratios (the tangible common equity and Basel I Tier 1 common capital ratios) 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. 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 $89.7 billion at December 31, 2011. 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 414 branches in California, Washington, Oregon, Texas and New York, as well as two international offices, on December 31, 2011. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Financial Highlights (Unaudited) | |||||||||||||||||||||||||||||||||||
Exhibit 1 | |||||||||||||||||||||||||||||||||||
Percent Change to | |||||||||||||||||||||||||||||||||||
As of and for the Three Months Ended | December 31, 2011 from | ||||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||
Results of operations: | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 640 | $ | 606 | $ | 614 | $ | 618 | $ | 631 | 6 | % | 1 | % | |||||||||||||||||||||
Noninterest income | 151 | 185 | 240 | 240 | 251 | (18 | ) | (40 | ) | ||||||||||||||||||||||||||
Total revenue | 791 | 791 | 854 | 858 | 882 | - | (10 | ) | |||||||||||||||||||||||||||
Noninterest expense | 619 | 603 | 578 | 615 | 701 | 3 | (12 | ) | |||||||||||||||||||||||||||
Pre-tax, pre-provision income | 172 | 188 | 276 | 243 | 181 | (9 | ) | (5 | ) | ||||||||||||||||||||||||||
(Reversal of) provision for loan losses | 7 | (13 | ) | (94 | ) | (102 | ) | (40 | ) | (154 | ) | nm | |||||||||||||||||||||||
Income before income taxes and including noncontrolling interests | 165 | 201 | 370 | 345 | 221 | (18 | ) | (25 | ) | ||||||||||||||||||||||||||
Income tax expense | 40 | 33 | 131 | 114 | 58 | 21 | (31 | ) | |||||||||||||||||||||||||||
Net income including noncontrolling interests | 125 | 168 | 239 | 231 | 163 | (26 | ) | (23 | ) | ||||||||||||||||||||||||||
Deduct: Net loss from noncontrolling interests | 4 | 4 | 3 | 4 | 9 | - | (56 | ) | |||||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||||||||||||
UnionBanCal Corporation (UNBC) | $ | 129 | $ | 172 | $ | 242 | $ | 235 | $ | 172 | (25 | ) | (25 | ) | |||||||||||||||||||||
Balance sheet (end of period): | |||||||||||||||||||||||||||||||||||
Total assets | $ | 89,676 | $ | 84,013 | $ | 80,093 | $ | 80,642 | $ | 79,097 | 7 | 13 | |||||||||||||||||||||||
Total securities | 24,106 | 20,962 | 19,430 | 21,673 | 22,114 | 15 | 9 | ||||||||||||||||||||||||||||
Total loans held for investment | 53,540 | 50,998 | 48,967 | 48,105 | 48,094 | 5 | 11 | ||||||||||||||||||||||||||||
Core deposits (3) | 52,840 | 50,720 | 48,156 | 49,433 | 50,100 | 4 | 5 | ||||||||||||||||||||||||||||
Total deposits | 64,420 | 60,454 | 57,181 | 58,677 | 59,954 | 7 | 7 | ||||||||||||||||||||||||||||
Long-term debt | 6,684 | 7,064 | 7,069 | 6,078 | 5,598 | (5 | ) | 19 | |||||||||||||||||||||||||||
UNBC stockholder's equity | 11,562 | 10,900 | 10,667 | 10,355 | 10,125 | 6 | 14 | ||||||||||||||||||||||||||||
Balance sheet (period average): | |||||||||||||||||||||||||||||||||||
Total assets | $ | 87,079 | $ | 82,197 | $ | 80,334 | $ | 80,056 | $ | 80,182 | 6 | 9 | |||||||||||||||||||||||
Total securities | 22,721 | 19,145 | 20,543 | 21,601 | 21,560 | 19 | 5 | ||||||||||||||||||||||||||||
Total loans held for investment | 52,365 | 50,214 | 48,849 | 48,283 | 47,952 | 4 | 9 | ||||||||||||||||||||||||||||
Earning assets | 78,007 | 73,303 | 71,709 | 71,351 | 71,517 | 6 | 9 | ||||||||||||||||||||||||||||
Total deposits | 62,848 | 59,580 | 58,333 | 59,471 | 61,728 | 5 | 2 | ||||||||||||||||||||||||||||
UNBC stockholder's equity | 11,646 | 10,708 | 10,366 | 10,167 | 10,034 | 9 | 16 | ||||||||||||||||||||||||||||
Performance ratios: | |||||||||||||||||||||||||||||||||||
Return on average assets (2) | 0.59 | % | 0.83 | % | 1.21 | % | 1.19 | % | 0.85 | % | |||||||||||||||||||||||||
Return on average UNBC stockholder's equity (2) | 4.39 | 6.36 | 9.36 | 9.38 | 6.81 | ||||||||||||||||||||||||||||||
Return on average assets excluding the impact of privatization transaction (2) | 0.65 | 0.90 | 1.28 | 1.24 | 0.92 | ||||||||||||||||||||||||||||||
Return on average stockholder's equity excluding the impact of privatization transaction (2) | 5.97 | 8.65 | 12.45 | 12.41 | 9.32 | ||||||||||||||||||||||||||||||
Efficiency ratio (4) | 78.27 | 76.21 | 67.77 | 71.62 | 79.52 | ||||||||||||||||||||||||||||||
Core Efficiency ratio (4) | 69.12 | 66.12 | 63.17 | 67.04 | 68.83 | ||||||||||||||||||||||||||||||
Net interest margin (1) (2) | 3.29 | 3.31 | 3.44 | 3.49 | 3.53 | ||||||||||||||||||||||||||||||
Capital ratios: | |||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (7) | 13.83 | % | 13.09 | % | 13.08 | % | 12.84 | % | 12.44 | % | |||||||||||||||||||||||||
Total risk-based capital ratio (7) | 15.99 | 15.41 | 15.41 | 15.41 | 15.01 | ||||||||||||||||||||||||||||||
Leverage ratio (7) | 11.44 | 10.96 | 10.96 | 10.66 | 10.34 | ||||||||||||||||||||||||||||||
Tier 1 common capital ratio (6) (7) | 13.83 | 13.09 | 13.08 | 12.84 | 12.42 | ||||||||||||||||||||||||||||||
Tangible common equity ratio (5) | 10.20 | 10.10 | 10.29 | 9.80 | 9.67 | ||||||||||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | |||||||||||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||
Financial Highlights (Unaudited) | ||||||||||||||||
Exhibit 2 | ||||||||||||||||
As of and for the Years Ended | Percent Change to | |||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||
(Dollars in millions) | 2011 (1) | 2010 (1) | 2010 | |||||||||||||
Results of operations: | ||||||||||||||||
Net interest income | $ | 2,478 | $ | 2,424 | 2 | % | ||||||||||
Noninterest income | 816 | 923 | (12 | ) | ||||||||||||
Total revenue | 3,294 | 3,347 | (2 | ) | ||||||||||||
Noninterest expense | 2,415 | 2,372 | 2 | |||||||||||||
Pre-tax, pre-provision income | 879 | 975 | (10 | ) | ||||||||||||
(Reversal of) provision for loan losses | (202 | ) | 182 | nm | ||||||||||||
Income before income taxes and including noncontrolling interests | 1,081 | 793 | 36 | |||||||||||||
Income tax expense | 318 | 239 | 33 | |||||||||||||
Net income including noncontrolling interests | 763 | 554 | 38 | |||||||||||||
Deduct: Net loss from noncontrolling interests | 15 | 19 | (21 | ) | ||||||||||||
Net income attributable to UNBC | $ | 778 | $ | 573 | 36 | |||||||||||
Balance sheet (end of period): | ||||||||||||||||
Total assets | $ | 89,676 | $ | 79,097 | 13 | |||||||||||
Total securities | 24,106 | 22,114 | 9 | |||||||||||||
Total loans held for investment | 53,540 | 48,094 | 11 | |||||||||||||
Core deposits (3) | 52,840 | 50,100 | 5 | |||||||||||||
Total deposits | 64,420 | 59,954 | 7 | |||||||||||||
Long-term debt | 6,684 | 5,598 | 19 | |||||||||||||
UNBC stockholder's equity | 11,562 | 10,125 | 14 | |||||||||||||
Balance sheet (period average): | ||||||||||||||||
Total assets | $ | 82,435 | $ | 83,176 | (1 | ) | ||||||||||
Total securities | 21,001 | 22,664 | (7 | ) | ||||||||||||
Total loans held for investment | 49,939 | 47,687 | 5 | |||||||||||||
Total earning assets | 73,610 | 75,028 | (2 | ) | ||||||||||||
Total deposits | 60,066 | 65,604 | (8 | ) | ||||||||||||
UNBC stockholder's equity | 10,726 | 9,780 | 10 | |||||||||||||
Performance ratios: | ||||||||||||||||
Return on average assets | 0.94 | % | 0.69 | % | ||||||||||||
Return on average UNBC stockholder's equity | 7.25 | 5.86 | ||||||||||||||
Return on average assets excluding the impact of privatization transaction | 1.01 | 0.76 | ||||||||||||||
Return on average stockholder's equity excluding the impact of privatization transaction | 9.67 | 8.27 | ||||||||||||||
Efficiency ratio (4) | 73.32 | 70.89 | ||||||||||||||
Core efficiency ratio (4) | 66.31 | 63.57 | ||||||||||||||
Net interest margin (1) | 3.38 | 3.24 | ||||||||||||||
Capital ratios: | ||||||||||||||||
Tier 1 risk-based capital ratio (7) | 13.83 | % | 12.44 | % | ||||||||||||
Total risk-based capital ratio (7) | 15.99 | 15.01 | ||||||||||||||
Leverage ratio (7) | 11.44 | 10.34 | ||||||||||||||
Tier 1 common capital ratio (6) (7) | 13.83 | 12.42 | ||||||||||||||
Tangible common equity ratio (5) | 10.20 | 9.67 | ||||||||||||||
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 | December 31, 2011 from | ||||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||
Credit Data: | |||||||||||||||||||||||||||||||||||
(Reversal of) provision for loan losses, excluding FDIC covered loans | $ | 7 | $ | (13 | ) | $ | (92 | ) | $ | (102 | ) | $ | (48 | ) | (154 | ) | % | nm | % | ||||||||||||||||
(Reversal of ) provision for FDIC covered loan losses not subject to FDIC indemnification | - | - | (2 | ) | - | 8 | - | (100 | ) | ||||||||||||||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments | 2 | - | (18 | ) | (13 | ) | (2 | ) | 100 | (200 | ) | ||||||||||||||||||||||||
Total (reversal of) provision for credit losses | $ | 9 | $ | (13 | ) | $ | (112 | ) | $ | (115 | ) | $ | (42 | ) | (169 | ) | nm | ||||||||||||||||||
Net loans charged off | $ | 28 | $ | 44 | $ | 111 | $ | 53 | $ | 64 | (36 | ) | (56 | ) | |||||||||||||||||||||
Nonperforming assets | 782 | 870 | 865 | 1,032 | 1,142 | (10 | ) | (32 | ) | ||||||||||||||||||||||||||
Credit Ratios: | |||||||||||||||||||||||||||||||||||
Allowance for loan losses to: | |||||||||||||||||||||||||||||||||||
Total loans held for investment | 1.43 | % | 1.51 | % | 1.69 | % | 2.15 | % | 2.48 | % | |||||||||||||||||||||||||
Nonaccrual loans | 119.58 | 105.97 | 114.05 | 118.50 | 123.40 | ||||||||||||||||||||||||||||||
Allowance for credit losses to (8) : | |||||||||||||||||||||||||||||||||||
Total loans held for investment | 1.68 | 1.76 | 1.96 | 2.46 | 2.81 | ||||||||||||||||||||||||||||||
Nonaccrual loans | 140.46 | 124.09 | 132.19 | 135.61 | 140.23 | ||||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment (2) | 0.21 | 0.35 | 0.91 | 0.44 | 0.52 | ||||||||||||||||||||||||||||||
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO) | 1.46 | 1.70 | 1.76 | 2.14 | 2.37 | ||||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.87 | 1.04 | 1.08 | 1.28 | 1.44 | ||||||||||||||||||||||||||||||
Nonaccrual loans to total loans held for investment | 1.19 | 1.42 | 1.48 | 1.81 | 2.01 | ||||||||||||||||||||||||||||||
Excluding FDIC covered assets (12): | |||||||||||||||||||||||||||||||||||
Allowance for loan losses to: | |||||||||||||||||||||||||||||||||||
Total loans held for investment | 1.42 | % | 1.51 | % | 1.70 | % | 2.17 | % | 2.50 | % | |||||||||||||||||||||||||
Nonaccrual loans | 126.26 | 112.28 | 124.09 | 129.10 | 137.32 | ||||||||||||||||||||||||||||||
Allowance for credit losses to (8) : | |||||||||||||||||||||||||||||||||||
Total loans held for investment | 1.67 | 1.77 | 1.97 | 2.48 | 2.85 | ||||||||||||||||||||||||||||||
Nonaccrual loans | 148.80 | 131.92 | 144.23 | 148.17 | 156.44 | ||||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment (2) | 0.21 | 0.36 | 0.92 | 0.46 | 0.54 | ||||||||||||||||||||||||||||||
Nonperforming assets to total loans held for investment and OREO | 1.17 | 1.38 | 1.42 | 1.74 | 1.91 | ||||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.70 | 0.83 | 0.86 | 1.03 | 1.15 | ||||||||||||||||||||||||||||||
Nonaccrual loans to total loans held for investment | 1.12 | 1.34 | 1.37 | 1.68 | 1.82 | ||||||||||||||||||||||||||||||
| Percent Change to | ||||||||||||||||||||||||||||||||||
As of and for the Years Ended | December 31, 2011 from | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||
(Dollars in millions) | 2011 | 2010 | 2010 | ||||||||||||||||||||||||||||||||
Credit Data: | |||||||||||||||||||||||||||||||||||
(Reversal of) provision for loan losses, excluding FDIC covered loans | $ | (200 | ) | $ | 174 |
| nm | % |
| ||||||||||||||||||||||||||
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification | (2 | ) | 8 |
| (125 | ) | |||||||||||||||||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments | (29 | ) | (14 | ) |
| (107 | ) | ||||||||||||||||||||||||||||
Total (reversal of) provision for credit losses | $ | (231 | ) | $ | 168 |
| nm | ||||||||||||||||||||||||||||
Net loans charged off | $ | 236 | $ | 366 |
| (36 | ) | ||||||||||||||||||||||||||||
Nonperforming assets | 782 | 1,142 |
| (32 | ) | ||||||||||||||||||||||||||||||
Credit Ratios: | |||||||||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment | 0.47 | % | 0.77 | % | |||||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.87 | 1.44 | |||||||||||||||||||||||||||||||||
Excluding FDIC covered assets (12): | |||||||||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment | 0.48 | % | 0.79 | % | |||||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.70 | 1.15 | |||||||||||||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | |||||||||||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||||
Exhibit 4 | |||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
(Dollars in millions) | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||||
Interest Income | |||||||||||||||||||||||||
Loans | $ | 603 | $ | 576 | $ | 565 | $ | 559 | $ | 576 | |||||||||||||||
Securities | 134 | 123 | 138 | 143 | 137 | ||||||||||||||||||||
Other | 2 | 3 | 2 | 1 | 1 | ||||||||||||||||||||
Total interest income | 739 | 702 | 705 | 703 | 714 | ||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||||
Deposits | 57 | 53 | 53 | 53 | 56 | ||||||||||||||||||||
Commercial paper and other short-term borrowings | 1 | 2 | 2 | 1 | - | ||||||||||||||||||||
Long-term debt | 41 | 41 | 36 | 31 | 27 | ||||||||||||||||||||
Total interest expense | 99 | 96 | 91 | 85 | 83 | ||||||||||||||||||||
Net Interest Income | 640 | 606 | 614 | 618 | 631 | ||||||||||||||||||||
(Reversal of) provision for loan losses | 7 | (13 | ) | (94 | ) | (102 | ) | (40 | ) | ||||||||||||||||
Net interest income after (reversal of) provision for loan losses | 633 | 619 | 708 | 720 | 671 | ||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||
Service charges on deposit accounts | 58 | 57 | 56 | 57 | 58 | ||||||||||||||||||||
Trust and investment management fees | 31 | 33 | 34 | 34 | 34 | ||||||||||||||||||||
Trading account activities | 38 | 27 | 28 | 33 | 33 | ||||||||||||||||||||
Merchant banking fees | 22 | 27 | 29 | 19 | 28 | ||||||||||||||||||||
Securities gains, net | - | 1 | 29 | 28 | 33 | ||||||||||||||||||||
Brokerage commissions and fees | 10 | 12 | 12 | 13 | 10 | ||||||||||||||||||||
Card processing fees, net | 4 | 11 | 12 | 10 | 10 | ||||||||||||||||||||
Other | (12 | ) | 17 | 40 | 46 | 45 | |||||||||||||||||||
Total noninterest income | 151 | 185 | 240 | 240 | 251 | ||||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||||
Salaries and employee benefits | 347 | 348 | 346 | 344 | 338 | ||||||||||||||||||||
Net occupancy and equipment | 71 | 64 | 67 | 65 | 64 | ||||||||||||||||||||
Professional and outside services | 55 | 55 | 55 | 44 | 56 | ||||||||||||||||||||
Intangible asset amortization | 32 | 25 | 24 | 25 | 31 | ||||||||||||||||||||
Regulatory assessments | 15 | 14 | 19 | 21 | 26 | ||||||||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments | 2 | - | (18 | ) | (13 | ) | (2 | ) | |||||||||||||||||
Other | 97 | 97 | 85 | 129 | 188 | ||||||||||||||||||||
Total noninterest expense | 619 | 603 | 578 | 615 | 701 | ||||||||||||||||||||
Income before income taxes and including noncontrolling interests | 165 | 201 | 370 | 345 | 221 | ||||||||||||||||||||
Income tax expense | 40 | 33 | 131 | 114 | 58 | ||||||||||||||||||||
Net Income including Noncontrolling Interests | 125 | 168 | 239 | 231 | 163 | ||||||||||||||||||||
Deduct: Net loss from noncontrolling interests | 4 | 4 | 3 | 4 | 9 | ||||||||||||||||||||
Net Income attributable to UNBC | $ | 129 | $ | 172 | $ | 242 | $ | 235 | $ | 172 | |||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||
Exhibit 5 | ||||||||||
For the Years Ended | ||||||||||
December 31, | December 31, | |||||||||
(Dollars in millions) | 2011 | 2010 | ||||||||
Interest Income | ||||||||||
Loans | $ | 2,303 | $ | 2,266 | ||||||
Securities | 538 | 547 | ||||||||
Other | 8 | 13 | ||||||||
Total interest income | 2,849 | 2,826 | ||||||||
Interest Expense | ||||||||||
Deposits | 216 | 290 | ||||||||
Commercial paper and other short-term borrowings | 6 | 4 | ||||||||
Long-term debt | 149 | 108 | ||||||||
Total interest expense | 371 | 402 | ||||||||
Net Interest Income | 2,478 | 2,424 | ||||||||
(Reversal of) provision for loan losses | (202 | ) | 182 | |||||||
Net interest income after (reversal of) provision for loan losses | 2,680 | 2,242 | ||||||||
Noninterest Income | ||||||||||
Service charges on deposit accounts | 228 | 250 | ||||||||
Trust and investment management fees | 132 | 133 | ||||||||
Trading account activities | 126 | 111 | ||||||||
Merchant banking fees | 97 | 83 | ||||||||
Securities gains, net | 58 | 105 | ||||||||
Brokerage commissions and fees | 47 | 40 | ||||||||
Card processing fees, net | 37 | 41 | ||||||||
Other | 91 | 160 | ||||||||
Total noninterest income | 816 | 923 | ||||||||
Noninterest Expense | ||||||||||
Salaries and employee benefits | 1,385 | 1,230 | ||||||||
Net occupancy and equipment | 267 | 252 | ||||||||
Professional and outside services | 209 | 199 | ||||||||
Intangible asset amortization | 106 | 124 | ||||||||
Regulatory assessments | 69 | 116 | ||||||||
(Reversal of) provision for losses on off-balance sheet commitments | (29 | ) | (14 | ) | ||||||
Other | 408 | 465 | ||||||||
Total noninterest expense | 2,415 | 2,372 | ||||||||
Income before income taxes and including noncontrolling interests | 1,081 | 793 | ||||||||
Income tax expense | 318 | 239 | ||||||||
Net Income including Noncontrolling Interests | 763 | 554 | ||||||||
Deduct: Net loss from noncontrolling interests | 15 | 19 | ||||||||
Net Income attributable to UNBC | $ | 778 | $ | 573 | ||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||||
Exhibit 6 | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
(Dollars in millions except for per share amount) | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and due from banks | $ | 1,419 | $ | 1,277 | $ | 1,233 | $ | 1,247 | $ | 946 | |||||||||||||||
Interest bearing deposits in banks (includes $8 at December 31, 2011, $7 at September 30, 2011, $24 at June 30, 2011, $23 at March 31, 2011 and $11 at December 31, 2010 related to consolidated variable interest entities (VIEs)) | 2,764 | 2,757 | 2,477 | 1,912 | 217 | ||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 12 | 28 | 78 | 24 | 11 | ||||||||||||||||||||
Total cash and cash equivalents | 4,195 | 4,062 | 3,788 | 3,183 | 1,174 | ||||||||||||||||||||
Trading account assets (includes $14 at December 31, 2011, $6 at September 30, 2011, $1 at June 30, 2011, $6 at March 31, 2011 and $43 at December 31, 2010 of assets pledged as collateral) | 1,135 | 1,120 | 898 | 876 | 999 | ||||||||||||||||||||
Securities available for sale (includes $340 at June 30, 2011, $308 at March 31, 2011 and $10 at December 31, 2010 of securities pledged as collateral) | 22,833 | 19,633 | 18,098 | 20,334 | 20,791 | ||||||||||||||||||||
Securities held to maturity (Fair value: December 31, 2011, $1,429; September 30, 2011, $1,474; June 30, 2011, $1,610; March 31, 2011, $1,646; and December 31, 2010, $1,560) | 1,273 | 1,329 | 1,332 | 1,339 | 1,323 | ||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Loans, excluding FDIC covered loans | 52,591 | 49,904 | 47,718 | 46,715 | 46,584 | ||||||||||||||||||||
FDIC covered loans | 949 | 1,094 | 1,249 | 1,390 | 1,510 | ||||||||||||||||||||
Total loans held for investment | 53,540 | 50,998 | 48,967 | 48,105 | 48,094 | ||||||||||||||||||||
Allowance for loan losses | (764 | ) | (768 | ) | (826 | ) | (1,034 | ) | (1,191 | ) | |||||||||||||||
Loans held for investment, net | 52,776 | 50,230 | 48,141 | 47,071 | 46,903 | ||||||||||||||||||||
Premises and equipment, net | 684 | 673 | 686 | 694 | 712 | ||||||||||||||||||||
Intangible assets, net | 360 | 383 | 407 | 432 | 457 | ||||||||||||||||||||
Goodwill | 2,457 | 2,447 | 2,447 | 2,447 | 2,456 | ||||||||||||||||||||
FDIC indemnification asset | 598 | 616 | 650 | 699 | 783 | ||||||||||||||||||||
Other assets (includes $268 at December 31, 2011, $290 at September 30, 2011, $272 at June 30, 2011, $277 at March 31, 2011 and $283 at December 31, 2010 related to consolidated VIEs) | 3,365 | 3,520 | 3,646 | 3,567 | 3,499 | ||||||||||||||||||||
Total assets | $ | 89,676 | $ | 84,013 | $ | 80,093 | $ | 80,642 | $ | 79,097 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||
Noninterest bearing | $ | 20,598 | $ | 19,630 | $ | 17,708 | $ | 18,062 | $ | 16,343 | |||||||||||||||
Interest bearing | 43,822 | 40,824 | 39,473 | 40,615 | 43,611 | ||||||||||||||||||||
Total deposits | 64,420 | 60,454 | 57,181 | 58,677 | 59,954 | ||||||||||||||||||||
Commercial paper and other short-term borrowings | 3,683 | 2,455 | 2,838 | 3,260 | 1,356 | ||||||||||||||||||||
Long-term debt (includes $8 at December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010 related to consolidated VIEs) | 6,684 | 7,064 | 7,069 | 6,078 | 5,598 | ||||||||||||||||||||
Trading account liabilities | 1,040 | 946 | 730 | 696 | 774 | ||||||||||||||||||||
Other liabilities (includes $1 at December 31, 2011, $3 at September 30, 2011, $2 at June 30, 2011, $2 at March 31, 2011 and $2 at December 31, 2010 related to consolidated VIEs) | 2,019 | 1,925 | 1,338 | 1,303 | 1,024 | ||||||||||||||||||||
Total liabilities | 77,846 | 72,844 | 69,156 | 70,014 | 68,706 | ||||||||||||||||||||
Equity | |||||||||||||||||||||||||
UNBC Stockholder's Equity: | |||||||||||||||||||||||||
Common stock, par value $1 per share: | |||||||||||||||||||||||||
Authorized 300,000,000 shares; 136,330,830 shares issued and outstanding as of December 31, 2011 and 136,330,829 shares issued and outstanding as of September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010 | 136 | 136 | 136 | 136 | 136 | ||||||||||||||||||||
Additional paid-in capital | 5,989 | 5,203 | 5,199 | 5,201 | 5,198 | ||||||||||||||||||||
Retained earnings | 6,246 | 6,117 | 5,945 | 5,703 | 5,468 | ||||||||||||||||||||
Accumulated other comprehensive loss | (809 | ) | (556 | ) | (613 | ) | (685 | ) | (677 | ) | |||||||||||||||
Total UNBC stockholder's equity | 11,562 | 10,900 | 10,667 | 10,355 | 10,125 | ||||||||||||||||||||
Noncontrolling interests | 268 | 269 | 270 | 273 | 266 | ||||||||||||||||||||
Total equity | 11,830 | 11,169 | 10,937 | 10,628 | 10,391 | ||||||||||||||||||||
Total liabilities and equity | $ | 89,676 | $ | 84,013 | $ | 80,093 | $ | 80,642 | $ | 79,097 | |||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||
Loans and Nonperforming Assets (Unaudited) | ||||||||||||||||||||
Exhibit 7 | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
(Dollars in millions) | 2011 | 2011 | 2011 | 2011 | 2010 | |||||||||||||||
Loans held for investment (period end) | ||||||||||||||||||||
Loans held for investment, excluding FDIC covered loans: | ||||||||||||||||||||
Commercial and industrial | $ | 19,226 | $ | 17,545 | $ | 15,854 | $ | 15,143 | $ | 15,162 | ||||||||||
Commercial mortgage | 8,175 | 7,927 | 7,729 | 7,749 | 7,816 | |||||||||||||||
Construction | 870 | 966 | 1,055 | 1,153 | 1,460 | |||||||||||||||
Lease financing | 965 | 693 | 701 | 773 | 757 | |||||||||||||||
Total commercial portfolio | 29,236 | 27,131 | 25,339 | 24,818 | 25,195 | |||||||||||||||
Residential mortgage | 19,625 | 19,043 | 18,610 | 18,110 | 17,531 | |||||||||||||||
Home equity and other consumer loans | 3,730 | 3,730 | 3,769 | 3,787 | 3,858 | |||||||||||||||
Total consumer portfolio | 23,355 | 22,773 | 22,379 | 21,897 | 21,389 | |||||||||||||||
Total loans held for investment, excluding FDIC covered loans | 52,591 | 49,904 | 47,718 | 46,715 | 46,584 | |||||||||||||||
FDIC covered loans | 949 | 1,094 | 1,249 | 1,390 | 1,510 | |||||||||||||||
Total loans held for investment | $ | 53,540 | $ | 50,998 | $ | 48,967 | $ | 48,105 | $ | 48,094 | ||||||||||
Nonperforming Assets (period end) | ||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
Commercial and industrial | $ | 127 | $ | 163 | $ | 110 | $ | 113 | $ | 115 | ||||||||||
Commercial mortgage | 139 | 206 | 230 | 265 | 329 | |||||||||||||||
Construction | 16 | 16 | 47 | 71 | 140 | |||||||||||||||
Lease financing | - | - | - | 71 | - | |||||||||||||||
Total commercial portfolio | 282 | 385 | 387 | 520 | 584 | |||||||||||||||
Residential mortgage | 285 | 259 | 242 | 241 | 243 | |||||||||||||||
Home equity and other consumer loans | 24 | 25 | 23 | 22 | 22 | |||||||||||||||
Total consumer portfolio | 309 | 284 | 265 | 263 | 265 | |||||||||||||||
Total nonaccrual loans, excluding FDIC covered loans | 591 | 669 | 652 | 783 | 849 | |||||||||||||||
FDIC covered loans | 47 | 56 | 72 | 90 | 116 | |||||||||||||||
Total nonaccrual loans | 638 | 725 | 724 | 873 | 965 | |||||||||||||||
OREO | 27 | 21 | 26 | 32 | 41 | |||||||||||||||
FDIC covered OREO | 117 | 124 | 115 | 127 | 136 | |||||||||||||||
Total nonperforming assets | $ | 782 | $ | 870 | $ | 865 | $ | 1,032 | $ | 1,142 | ||||||||||
Total nonperforming assets, excluding FDIC covered assets | $ | 618 | $ | 690 | $ | 678 | $ | 815 | $ | 890 | ||||||||||
Loans 90 days or more past due and still accruing (13) | $ | 2 | $ | 3 | $ | 2 | $ | 3 | $ | 2 | ||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||
Allowances for Credit Losses (Unaudited) | |||||||||||||||||||||||||
Exhibit 8 | |||||||||||||||||||||||||
As of and for the Three Months Ended | |||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
(Dollars in millions) | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||||
Analysis of Allowance for Credit Losses | |||||||||||||||||||||||||
Balance, beginning of period | $ | 768 | $ | 826 | $ | 1,034 | $ | 1,191 | $ | 1,277 | |||||||||||||||
(Reversal of) provision for loan losses, excluding FDIC covered loans | 7 | (13 | ) | (92 | ) | (102 | ) | (48 | ) | ||||||||||||||||
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification | - | - | (2 | ) | - | 8 | |||||||||||||||||||
Increase (decrease) in allowance covered by FDIC indemnification | - | - | (3 | ) | (2 | ) | 17 | ||||||||||||||||||
Other (14) | 17 | (1 | ) | - | - | 1 | |||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||||
Commercial and industrial | (7 | ) | (20 | ) | (11 | ) | (23 | ) | (18 | ) | |||||||||||||||
Commercial mortgage | (14 | ) | (10 | ) | (14 | ) | (24 | ) | (51 | ) | |||||||||||||||
Construction | - | - | (3 | ) | (1 | ) | (4 | ) | |||||||||||||||||
Lease financing | (14 | ) | (5 | ) | (71 | ) | - | - | |||||||||||||||||
Total commercial portfolio | (35 | ) | (35 | ) | (99 | ) | (48 | ) | (73 | ) | |||||||||||||||
Residential mortgage | (9 | ) | (12 | ) | (13 | ) | (14 | ) | (8 | ) | |||||||||||||||
Home equity and other consumer loans | (10 | ) | (8 | ) | (10 | ) | (11 | ) | (15 | ) | |||||||||||||||
Total consumer portfolio | (19 | ) | (20 | ) | (23 | ) | (25 | ) | (23 | ) | |||||||||||||||
FDIC covered loans | - | (2 | ) | (1 | ) | - | - | ||||||||||||||||||
Total loans charged off | (54 | ) | (57 | ) | (123 | ) | (73 | ) | (96 | ) | |||||||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||||||||||
Commercial and industrial | 8 | 5 | 8 | 7 | 19 | ||||||||||||||||||||
Commercial mortgage | 15 | 1 | 2 | 8 | 8 | ||||||||||||||||||||
Construction | 2 | 4 | 2 | 4 | 3 | ||||||||||||||||||||
Total commercial portfolio | 25 | 10 | 12 | 19 | 30 | ||||||||||||||||||||
Residential mortgage | - | 1 | - | - | 1 | ||||||||||||||||||||
Home equity and other consumer loans | - | 1 | - | 1 | 1 | ||||||||||||||||||||
Total consumer portfolio | - | 2 | - | 1 | 2 | ||||||||||||||||||||
FDIC covered loans | 1 | 1 | - | - | - | ||||||||||||||||||||
Total recoveries of loans previously charged off | 26 | 13 | 12 | 20 | 32 | ||||||||||||||||||||
Net loans charged off | (28 | ) | (44 | ) | (111 | ) | (53 | ) | (64 | ) | |||||||||||||||
Ending balance of allowance for loan losses | 764 | 768 | 826 | 1,034 | 1,191 | ||||||||||||||||||||
Allowance for losses on off-balance sheet commitments | 133 | 131 | 131 | 150 | 162 | ||||||||||||||||||||
Total allowance for credit losses | $ | 897 | $ | 899 | $ | 957 | $ | 1,184 | $ | 1,353 | |||||||||||||||
Components of allowance for loan losses: | |||||||||||||||||||||||||
Allowance for loan losses, excluding allowance on FDIC covered loans | $ | 747 | $ | 751 | $ | 809 | $ | 1,011 | $ | 1,166 | |||||||||||||||
Allowance for loan losses on FDIC covered loans | 17 | 17 | 17 | 23 | 25 | ||||||||||||||||||||
Total allowance for loan losses | $ | 764 | $ | 768 | $ | 826 | $ | 1,034 | $ | 1,191 | |||||||||||||||
Refer to Exhibit 13 for footnote explanations. | |||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||
Net Interest Income (Unaudited) | |||||||||||||||||||||||||||
Exhibit 9 | |||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||
December 31, 2011 | September 30, 2011 | ||||||||||||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||
(Dollars in millions) | Balance | Expense (1) | Rate (1)(2) | Balance | Expense (1) | Rate (1)(2) | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Loans held for investment: (9) | |||||||||||||||||||||||||||
Commercial and industrial | $ | 18,268 | $ | 174 | 3.77 | % | $ | 16,947 | $ | 160 | 3.76 | % | |||||||||||||||
Commercial mortgage | 8,086 | 84 | 4.12 | 7,838 | 82 | 4.22 | |||||||||||||||||||||
Construction | 893 | 9 | 3.77 | 992 | 12 | 5.04 | |||||||||||||||||||||
Lease financing | 1,073 | 14 | 5.45 | 697 | 8 | 4.28 | |||||||||||||||||||||
Residential mortgage | 19,298 | 223 | 4.61 | 18,818 | 221 | 4.70 | |||||||||||||||||||||
Home equity and other consumer loans | 3,728 | 38 | 4.03 | 3,751 | 40 | 4.25 | |||||||||||||||||||||
Total loans, excluding FDIC covered loans | 51,346 | 542 | 4.20 | 49,043 | 523 | 4.26 | |||||||||||||||||||||
FDIC covered loans | 1,019 | 63 | 24.88 | 1,171 | 55 | 18.60 | |||||||||||||||||||||
Total loans held for investment | 52,365 | 605 | 4.60 | 50,214 | 578 | 4.60 | |||||||||||||||||||||
Securities | 22,721 | 134 | 2.36 | 19,145 | 123 | 2.56 | |||||||||||||||||||||
Interest bearing deposits in banks | 2,591 | 2 | 0.26 | 3,610 | 3 | 0.25 | |||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 61 | - | 0.16 | 61 | - | 0.03 | |||||||||||||||||||||
Trading account assets | 141 | - | 0.65 | 166 | - | 0.68 | |||||||||||||||||||||
Other earning assets | 128 | - | 0.33 | 107 | - | 0.54 | |||||||||||||||||||||
Total earning assets | 78,007 | 741 | 3.79 | 73,303 | 704 | 3.83 | |||||||||||||||||||||
Allowance for loan losses | (780 | ) | (785 | ) | |||||||||||||||||||||||
Cash and due from banks | 1,342 | 1,254 | |||||||||||||||||||||||||
Premises and equipment, net | 678 | 676 | |||||||||||||||||||||||||
Other assets | 7,832 | 7,749 | |||||||||||||||||||||||||
Total assets | $ | 87,079 | $ | 82,197 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||||||||||
Transaction and money market accounts | $ | 24,763 | 14 | 0.22 | $ | 23,836 | 14 | 0.23 | |||||||||||||||||||
Savings | 5,338 | 3 | 0.17 | 5,476 | 3 | 0.21 | |||||||||||||||||||||
Time | 12,863 | 40 | 1.23 | 11,634 | 36 | 1.28 | |||||||||||||||||||||
Total interest bearing deposits | 42,964 | 57 | 0.51 | 40,946 | 53 | 0.53 | |||||||||||||||||||||
Commercial paper and other short-term borrowings (10) | 2,733 | 1 | 0.23 | 2,371 | 2 | 0.20 | |||||||||||||||||||||
Long-term debt | 6,977 | 41 | 2.35 | 7,066 | 41 | 2.31 | |||||||||||||||||||||
Total borrowed funds | 9,710 | 42 | 1.75 | 9,437 | 43 | 1.78 | |||||||||||||||||||||
Total interest bearing liabilities | 52,674 | 99 | 0.74 | 50,383 | 96 | 0.76 | |||||||||||||||||||||
Noninterest bearing deposits | 19,884 | 18,634 | |||||||||||||||||||||||||
Other liabilities | 2,606 | 2,203 | |||||||||||||||||||||||||
Total liabilities | 75,164 | 71,220 | |||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||
UNBC Stockholder's equity | 11,646 | 10,708 | |||||||||||||||||||||||||
Noncontrolling interests | 269 | 269 | |||||||||||||||||||||||||
Total equity | 11,915 | 10,977 | |||||||||||||||||||||||||
Total liabilities and equity | $ | 87,079 | $ | 82,197 | |||||||||||||||||||||||
Net interest income/spread (taxable-equivalent basis) | 642 | 3.05 | % | 608 | 3.07 | % | |||||||||||||||||||||
Impact of noninterest bearing deposits | 0.20 | 0.20 | |||||||||||||||||||||||||
Impact of other noninterest bearing sources | 0.04 | 0.04 | |||||||||||||||||||||||||
Net interest margin | 3.29 | 3.31 | |||||||||||||||||||||||||
Less: taxable-equivalent adjustment | 2 | 2 | |||||||||||||||||||||||||
Net interest income | $ | 640 | $ | 606 | |||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | |||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||||
Exhibit 10 | ||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||
December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||
(Dollars in millions) | Balance | Expense (1) | Rate (1)(2) | Balance | Expense (1) | Rate (1)(2) | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Loans held for investment: (9) | ||||||||||||||||||||||||||
Commercial and industrial | $ | 18,268 | $ | 174 | 3.77 | % | $ | 14,848 | $ | 170 | 4.56 | % | ||||||||||||||
Commercial mortgage | 8,086 | 84 | 4.12 | 7,851 | 84 | 4.29 | ||||||||||||||||||||
Construction | 893 | 9 | 3.77 | 1,724 | 18 | 4.13 | ||||||||||||||||||||
Lease financing | 1,073 | 14 | 5.45 | 641 | 5 | 2.89 | ||||||||||||||||||||
Residential mortgage | 19,298 | 223 | 4.61 | 17,400 | 222 | 5.11 | ||||||||||||||||||||
Home equity and other consumer loans | 3,728 | 38 | 4.03 | 3,872 | 43 | 4.36 | ||||||||||||||||||||
Total loans, excluding FDIC covered loans | 51,346 | 542 | 4.20 | 46,336 | 542 | 4.66 | ||||||||||||||||||||
FDIC covered loans | 1,019 | 63 | 24.88 | 1,616 | 37 | 9.03 | ||||||||||||||||||||
Total loans held for investment | 52,365 | 605 | 4.60 | 47,952 | 579 | 4.81 | ||||||||||||||||||||
Securities | 22,721 | 134 | 2.36 | 21,560 | 137 | 2.54 | ||||||||||||||||||||
Interest bearing deposits in banks | 2,591 | 2 | 0.26 | 1,653 | 1 | 0.26 | ||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 61 | - | 0.16 | 174 | - | 0.19 | ||||||||||||||||||||
Trading account assets | 141 | - | 0.65 | 178 | - | 1.10 | ||||||||||||||||||||
Other earning assets | 128 | - | 0.33 | - | - | - | ||||||||||||||||||||
Total earning assets | 78,007 | 741 | 3.79 | 71,517 | 717 | 4.00 | ||||||||||||||||||||
Allowance for loan losses | (780 | ) | (1,273 | ) | ||||||||||||||||||||||
Cash and due from banks | 1,342 | 1,271 | ||||||||||||||||||||||||
Premises and equipment, net | 678 | 682 | ||||||||||||||||||||||||
Other assets | 7,832 | 7,985 | ||||||||||||||||||||||||
Total assets | $ | 87,079 | $ | 80,182 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||
Transaction and money market accounts | $ | 24,763 | 14 | 0.22 | $ | 28,697 | 21 | 0.30 | ||||||||||||||||||
Savings | 5,338 | 3 | 0.17 | 4,533 | 3 | 0.22 | ||||||||||||||||||||
Time | 12,863 | 40 | 1.23 | 12,017 | 32 | 1.08 | ||||||||||||||||||||
Total interest bearing deposits | 42,964 | 57 | 0.51 | 45,247 | 56 | 0.50 | ||||||||||||||||||||
Commercial paper and other short-term borrowings (10) | 2,733 | 1 | 0.23 | 1,246 | - | 0.30 | ||||||||||||||||||||
Long-term debt | 6,977 | 41 | 2.35 | 5,109 | 27 | 2.05 | ||||||||||||||||||||
Total borrowed funds | 9,710 | 42 | 1.75 | 6,355 | 27 | 1.71 | ||||||||||||||||||||
Total interest bearing liabilities | 52,674 | 99 | 0.74 | 51,602 | 83 | 0.65 | ||||||||||||||||||||
Noninterest bearing deposits | 19,884 | 16,481 | ||||||||||||||||||||||||
Other liabilities | 2,606 | 1,793 | ||||||||||||||||||||||||
Total liabilities | 75,164 | 69,876 | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||
UNBC Stockholder's equity | 11,646 | 10,034 | ||||||||||||||||||||||||
Noncontrolling interests | 269 | 272 | ||||||||||||||||||||||||
Total equity | 11,915 | 10,306 | ||||||||||||||||||||||||
Total liabilities and equity | $ | 87,079 | $ | 80,182 | ||||||||||||||||||||||
Net interest income/spread (taxable-equivalent basis) | 642 | 3.05 | % | 634 | 3.35 | % | ||||||||||||||||||||
Impact of noninterest bearing deposits | 0.20 | 0.16 | ||||||||||||||||||||||||
Impact of other noninterest bearing sources | 0.04 | 0.02 | ||||||||||||||||||||||||
Net interest margin | 3.29 | 3.53 | ||||||||||||||||||||||||
Less: taxable-equivalent adjustment | 2 | 3 | ||||||||||||||||||||||||
Net interest income | $ | 640 | $ | 631 | ||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. | ||||||||||||||||||||||||||
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||||||
Exhibit 11 | ||||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||||
December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||
(Dollars in millions) | Balance | Expense (1) | Rate (1) | Balance | Expense (1) | Rate (1) | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Loans held for investment: (9) | ||||||||||||||||||||||||||
Commercial and industrial | $ | 16,598 | $ | 650 | 3.92 | % | $ | 14,754 | $ | 676 | 4.58 | % | ||||||||||||||
Commercial mortgage | 7,858 | 335 | 4.26 | 8,067 | 341 | 4.23 | ||||||||||||||||||||
Construction | 1,084 | 44 | 4.04 | 2,029 | 66 | 3.24 | ||||||||||||||||||||
Lease financing | 830 | 38 | 4.60 | 642 | 23 | 3.59 | ||||||||||||||||||||
Residential mortgage | 18,562 | 885 | 4.77 | 17,093 | 902 | 5.28 | ||||||||||||||||||||
Home equity and other consumer loans | 3,771 | 158 | 4.20 | 3,902 | 172 | 4.41 | ||||||||||||||||||||
Total loans, excluding FDIC covered loans | 48,703 | 2,110 | 4.33 | 46,487 | 2,180 | 4.69 | ||||||||||||||||||||
FDIC covered loans | 1,236 | 201 | 16.29 | 1,200 | 95 | 7.88 | ||||||||||||||||||||
Total loans held for investment | 49,939 | 2,311 | 4.63 | 47,687 | 2,275 | 4.77 | ||||||||||||||||||||
Securities | 21,001 | 539 | 2.57 | 22,664 | 548 | 2.42 | ||||||||||||||||||||
Interest bearing deposits in banks | 2,373 | 7 | 0.25 | 4,128 | 10 | 0.25 | ||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 72 | - | 0.12 | 353 | 1 | 0.14 | ||||||||||||||||||||
Trading account assets | 149 | 1 | 0.80 | 196 | 2 | 1.31 | ||||||||||||||||||||
Other earning assets | 76 | - | 0.73 | - | - | - | ||||||||||||||||||||
Total earning assets | 73,610 | 2,858 | 3.88 | 75,028 | 2,836 | 3.78 | ||||||||||||||||||||
Allowance for loan losses | (933 | ) | (1,378 | ) | ||||||||||||||||||||||
Cash and due from banks | 1,263 | 1,214 | ||||||||||||||||||||||||
Premises and equipment, net | 689 | 675 | ||||||||||||||||||||||||
Other assets | 7,806 | 7,637 | ||||||||||||||||||||||||
Total assets | $ | 82,435 | $ | 83,176 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||
Transaction and money market accounts | $ | 24,434 | 57 | 0.23 | $ | 34,686 | 166 | 0.48 | ||||||||||||||||||
Savings | 5,226 | 12 | 0.23 | 4,426 | 16 | 0.35 | ||||||||||||||||||||
Time | 11,994 | 147 | 1.22 | 11,209 | 108 | 0.97 | ||||||||||||||||||||
Total interest bearing deposits | 41,654 | 216 | 0.52 | 50,321 | 290 | 0.58 | ||||||||||||||||||||
Commercial paper and other short-term borrowings (10) | 2,663 | 6 | 0.23 | 1,289 | 4 | 0.38 | ||||||||||||||||||||
Long-term debt | 6,578 | 149 | 2.27 | 4,736 | 108 | 2.28 | ||||||||||||||||||||
Total borrowed funds | 9,241 | 155 | 1.68 | 6,025 | 112 | 1.87 | ||||||||||||||||||||
Total interest bearing liabilities | 50,895 | 371 | 0.73 | 56,346 | 402 | 0.72 | ||||||||||||||||||||
Noninterest bearing deposits | 18,412 | 15,283 | ||||||||||||||||||||||||
Other liabilities | 2,133 | 1,535 | ||||||||||||||||||||||||
Total liabilities | 71,440 | 73,164 | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||
UNBC Stockholder's equity | 10,726 | 9,780 | ||||||||||||||||||||||||
Noncontrolling interests | 269 | 232 | ||||||||||||||||||||||||
Total equity | 10,995 | 10,012 | ||||||||||||||||||||||||
Total liabilities and equity | $ | 82,435 | $ | 83,176 | ||||||||||||||||||||||
Net interest income/spread (taxable-equivalent basis) | 2,487 | 3.15 | % | 2,434 | 3.06 | % | ||||||||||||||||||||
Impact of noninterest bearing deposits | 0.19 | 0.16 | ||||||||||||||||||||||||
Impact of other noninterest bearing sources | 0.04 | 0.02 | ||||||||||||||||||||||||
Net interest margin | 3.38 | 3.24 | ||||||||||||||||||||||||
Less: taxable-equivalent adjustment | 9 | 10 | ||||||||||||||||||||||||
Net interest income | $ | 2,478 | $ | 2,424 | ||||||||||||||||||||||
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 Years Ended | |||||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||
(Dollars in millions) | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
Net income attributable to UNBC | $ | 129 | $ | 172 | $ | 242 | $ | 235 | $ | 172 | $ | 778 | $ | 573 | ||||||||||||||||||||||
Net adjustments related to privatization transaction, net of tax | 10 | 10 | 6 | 3 | 7 | 29 | 36 | |||||||||||||||||||||||||||||
Net income attributable to UNBC, excluding impact of privatization transaction | $ | 139 | $ | 182 | $ | 248 | $ | 238 | $ | 179 | $ | 807 | $ | 609 | ||||||||||||||||||||||
Average total assets | $ | 87,079 | $ | 82,197 | $ | 80,334 | $ | 80,056 | $ | 80,182 | $ | 82,435 | $ | 83,176 | ||||||||||||||||||||||
Net adjustments related to privatization transaction | 2,419 | 2,442 | 2,459 | 2,473 | 2,488 | 2,448 | 2,518 | |||||||||||||||||||||||||||||
Average total assets, excluding impact of privatization transaction | $ | 84,660 | $ | 79,755 | $ | 77,875 | $ | 77,583 | $ | 77,694 | $ | 79,987 | $ | 80,658 | ||||||||||||||||||||||
Return on average assets (2) | 0.59 | % | 0.83 | % | 1.21 | % | 1.19 | % | 0.85 | % | 0.94 | % | 0.69 | % | ||||||||||||||||||||||
Return on average assets, excluding impact of privatization transaction (2) (11) | 0.65 | 0.90 | 1.28 | 1.24 | 0.92 | 1.01 | 0.76 | |||||||||||||||||||||||||||||
Average UNBC stockholder's equity | $ | 11,646 | $ | 10,708 | $ | 10,366 | $ | 10,167 | $ | 10,034 | $ | 10,726 | $ | 9,780 | ||||||||||||||||||||||
Net adjustments related to privatization transaction | 2,380 | 2,385 | 2,390 | 2,396 | 2,401 | 2,388 | 2,407 | |||||||||||||||||||||||||||||
Average UNBC stockholder's equity, excluding impact of privatization transaction | $ | 9,266 | $ | 8,323 | $ | 7,976 | $ | 7,771 | $ | 7,633 | $ | 8,338 | $ | 7,373 | ||||||||||||||||||||||
Return on average UNBC stockholder's equity (2) | 4.39 | % | 6.36 | % | 9.36 | % | 9.38 | % | 6.81 | % | 7.25 | % | 5.86 | % | ||||||||||||||||||||||
Return on average UNBC stockholder's equity, excluding impact of privatization transaction (2) (11) | 5.97 | 8.65 | 12.45 | 12.41 | 9.32 | 9.67 | 8.27 | |||||||||||||||||||||||||||||
Noninterest expense | $ | 619 | $ | 603 | $ | 578 | $ | 615 | $ | 701 | $ | 2,415 | $ | 2,372 | ||||||||||||||||||||||
Less: Foreclosed asset expense | 3 | 4 | 2 | 3 | 4 | 12 | 11 | |||||||||||||||||||||||||||||
Less: (Reversal of) provision for losses on off-balance sheet commitments | 2 | - | (18 | ) | (13 | ) | (2 | ) | (29 | ) | (14 | ) | ||||||||||||||||||||||||
Less: Productivity initiative costs | 14 | 33 | 5 | 4 | - | 56 | - | |||||||||||||||||||||||||||||
Less: Low income housing credit investment amortization expense | 23 | 15 | 18 | 13 | 19 | 69 | 60 | |||||||||||||||||||||||||||||
Less: Expenses of the consolidated VIEs | 6 | 6 | 6 | 6 | 15 | 24 | 32 | |||||||||||||||||||||||||||||
Less: Merger costs related to acquisitions | - | 1 | 10 | 13 | 9 | 24 | 33 | |||||||||||||||||||||||||||||
Less: Asset impairment charge | - | - | - | - | 30 | - | 30 | |||||||||||||||||||||||||||||
Net noninterest expense before privatization adjustments | $ | 571 | $ | 544 | $ | 555 | $ | 589 | $ | 626 | $ | 2,259 | $ | 2,220 | ||||||||||||||||||||||
Net adjustments related to privatization transaction | 32 | 26 | 25 | 26 | 32 | 109 | 136 | |||||||||||||||||||||||||||||
Net noninterest expense, excluding impact of privatization transaction (a) | $ | 539 | $ | 518 | $ | 530 | $ | 563 | $ | 594 | $ | 2,150 | $ | 2,084 | ||||||||||||||||||||||
Total revenue | $ | 791 | $ | 791 | $ | 854 | $ | 858 | $ | 882 | $ | 3,294 | $ | 3,347 | ||||||||||||||||||||||
Add: Net interest income taxable-equivalent adjustment | 2 | 2 | 3 | 2 | 3 | 9 | 10 | |||||||||||||||||||||||||||||
Total revenue, including taxable-equivalent adjustment | 793 | 793 | 857 | 860 | 885 | 3,303 | 3,357 | |||||||||||||||||||||||||||||
Accretion related to privatization-related fair value adjustments | 15 | 10 | 16 | 21 | 21 | 62 | 77 | |||||||||||||||||||||||||||||
Total revenue, excluding impact of privatization transaction (b) | $ | 778 | $ | 783 | $ | 841 | $ | 839 | $ | 864 | $ | 3,241 | $ | 3,280 | ||||||||||||||||||||||
Core efficiency ratio, excluding impact of privatization transaction (a)/(b) (4) (11) | 69.12 | 66.12 | 63.17 | 67.04 | 68.83 | 66.31 | 63.57 | |||||||||||||||||||||||||||||
Total UNBC stockholder's equity | $ | 11,562 | $ | 10,900 | $ | 10,667 | $ | 10,355 | $ | 10,125 | ||||||||||||||||||||||||||
Less: Goodwill | 2,457 | 2,447 | 2,447 | 2,447 | 2,456 | |||||||||||||||||||||||||||||||
Less: Intangible assets | 360 | 383 | 407 | 432 | 457 | |||||||||||||||||||||||||||||||
Less: Deferred tax liabilities related to goodwill and intangible assets | (130 | ) | (140 | ) | (149 | ) | (159 | ) | (168 | ) | ||||||||||||||||||||||||||
Tangible common equity (c) | $ | 8,875 | $ | 8,210 | $ | 7,962 | $ | 7,635 | $ | 7,380 | ||||||||||||||||||||||||||
Tier 1 capital, determined in accordance with regulatory requirements | $ | 9,642 | $ | 8,724 | $ | 8,535 | $ | 8,280 | $ | 8,029 | ||||||||||||||||||||||||||
Less: Trust preferred securities | - | - | - | - | 13 | |||||||||||||||||||||||||||||||
Tier 1 common equity (d) | $ | 9,642 | $ | 8,724 | $ | 8,535 | $ | 8,280 | $ | 8,016 | ||||||||||||||||||||||||||
Total assets | $ | 89,676 | $ | 84,013 | $ | 80,093 | $ | 80,642 | $ | 79,097 | ||||||||||||||||||||||||||
Less: Goodwill | 2,457 | 2,447 | 2,447 | 2,447 | 2,456 | |||||||||||||||||||||||||||||||
Less: Intangible assets | 360 | 383 | 407 | 432 | 457 | |||||||||||||||||||||||||||||||
Less: Deferred tax liabilities related to goodwill and intangible assets | (130 | ) | (140 | ) | (149 | ) | (159 | ) | (168 | ) | ||||||||||||||||||||||||||
Tangible assets (e) | $ | 86,989 | $ | 81,323 | $ | 77,388 | $ | 77,922 | $ | 76,352 | ||||||||||||||||||||||||||
Risk-weighted assets, determined in accordance with regulatory requirements (f) (7) | $ | 69,700 | $ | 66,628 | $ | 65,274 | $ | 64,467 | $ | 64,516 | ||||||||||||||||||||||||||
Tangible common equity ratio (c)/(e) (5) | 10.20 | % | 10.10 | % | 10.29 | % | 9.80 | % | 9.67 | % | ||||||||||||||||||||||||||
Tier 1 common capital ratio (d)/(f) (6)(7) | 13.83 | 13.09 | 13.08 | 12.84 | 12.42 | |||||||||||||||||||||||||||||||
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) | Core deposits consist of total deposits, excluding brokered deposits, foreign time deposits and domestic time deposits greater than $250,000. | |
(4) | The efficiency ratio, is total noninterest expense as a percentage of total revenue (net interest income and noninterest income). The core efficiency ratio, a non-GAAP financial measure, is net noninterest expense (noninterest expense excluding privatization-related expenses and fair value amortization/accretion, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated VIEs, merger costs related to acquisitions, asset impairment charges and certain costs related to productivity initiatives) as a percentage of total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding impact of privatization. Management discloses the core efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our core activities. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(5) | The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio 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. | |
(6) | The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. All of the trust preferred securities were paid off during the quarter ended March 31, 2011. 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. | |
(7) | Estimated as of December 31, 2011. The risk-based capital ratios at December 31, 2011 are considered preliminary, due primarily to a difference in methodologies applied by the OCC and the Federal Reserve with respect to the treatment of certain exposures. Accordingly, the final risk-based capital ratios are subject to change upon the resolution of this issue. | |
(8) | The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments. | |
(9) | Average balances on loans outstanding include all nonperforming loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield. | |
(10) | Includes interest bearing trading liabilities. | |
(11) | These ratios exclude the impact of the privatization transaction. Management believes that these ratios, which exclude the push-down accounting effects of the privatization transaction, provide useful supplemental information, which is important to a proper understanding of the Company's core business results. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(12) | These ratios exclude the impact of the FDIC covered loans, the related allowance for loan losses and FDIC covered OREO, 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. Management believes the exclusion of FDIC covered loans and FDIC covered OREO in certain asset quality ratios that include nonperforming loans, nonperforming assets, total loans held for investment and the allowance for loan losses or credit losses in the numerator or denominator provides a better perspective into underlying asset quality trends. | |
(13) | Excludes loans totaling $165 million, $198 million, $251 million, $279 million and $312 million that are 90 days or more past due and still accruing at December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, which consist of FDIC covered loans accounted for in accordance with the accounting standards for purchased credit impaired loans. | |
(14) | Other includes a $16 million allowance for loan losses transfer attributed to an internal reorganization on October 1, 2011 in which The Bank of Tokyo-Mitsubishi UFJ transferred its trust company, The Bank of Tokyo-Mitsubishi UFJ Trust Company (BTMUT) to the Company. | |
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CONTACT:
UnionBanCal Corporation
Thomas Taggart, 415-765-2249
Corporate Communications
Michelle Crandall, 415-765-2780
Investor Relations