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UnionBanCal Corporation Reports Fourth Quarter Net Income of $123 Million, Full Year Net Income of $629 Million

  UnionBanCal Corporation Reports Fourth Quarter Net Income of $123 Million,
  Full Year Net Income of $629 Million

Fourth Quarter Highlights:

  *Completed the acquisition of Pacific Capital Bancorp (PCBC) on December 1,
    2012.
  *Completed the acquisition of Smartstreet on October 26, 2012.
  *Net income was $123 million, down slightly from $124 million for the prior
    quarter, and down from $129 million for the year-ago quarter.
  *Total provision for credit losses was a benefit of $15 million, compared
    with a provision of $41 million for the prior quarter, and a provision of
    $9 million for the year-ago quarter.
  *Solid underlying credit quality metrics, including the acquisition of
    PCBC. Excluding purchased credit-impaired (PCI) loans and FDIC covered
    other real estate owned (OREO):

       *Nonperforming assets at quarter-end were $520 million, or 0.54
         percent of total assets, down from $526 million, or 0.60 percent of
         total assets, at September 30, 2012.
       *Net charge-offs were less than $1 million for the fourth quarter,
         compared with $40 million, or an annualized 0.29 percent of average
         total loans, for the prior quarter. The prior quarter included $17
         million in residential mortgage and home equity net charge-offs due
         to implementation of new regulatory guidance.

  *Net interest margin was 3.23 percent, down from 3.32 percent for the prior
    quarter, and down from 3.29 percent for the year-ago quarter.
  *Average total loans, excluding PCI loans, were $56.5 billion, up from
    $54.7 billion for the prior quarter, and up from $51.3 billion for the
    year-ago quarter.
  *Core deposits at December 31, 2012, were $63.8 billion, up from $55.1
    billion at September 30, 2012, and up from $52.8 billion at December 31,
    2011.
  *Capital ratios remained strong during the quarter. Including the December
    1, 2012, acquisition of PCBC:

       *Tier 1 common capital ratio, measured using Basel I risk-weighted
         assets, was 12.35 percent at December 31, 2012, down 142 basis points
         from 13.77 percent at September 30, 2012.
       *Tangible common equity ratio was 9.92 percent at December 31, 2012,
         down 154 basis points from 11.46 percent at September 30, 2012.

  *Full Year Highlights:

       *Net income was $629 million, down from $778 million for the prior
         year.
       *Total provision for credit losses was $8 million, compared with a
         benefit of $231 million for the prior year.
       *Excluding PCI loans, net charge-offs were $123 million, or 0.23
         percent of average total loans, down from $235 million, or 0.48
         percent of average total loans, for the prior year.

Business Wire

SAN FRANCISCO -- January 25, 2013

UnionBanCal Corporation (the Company), parent company of San Francisco-based
Union Bank, N.A., today reported fourth quarter 2012 results. Net income for
the fourth quarter was $123 million, down slightly from $124 million for the
prior quarter, and down from $129 million for the year-ago quarter. Higher
total revenue and a benefit from the provision for credit losses were offset
by higher noninterest expense, which increased primarily due to merger costs
related to the acquisition of PCBC.

On December 1, 2012, the Company completed the $1.5 billion purchase of PCBC,
a bank holding company headquartered in Santa Barbara, California. As part of
the transaction, Santa Barbara Bank & Trust, N.A., was merged with and into
the Company’s primary subsidiary, Union Bank, N.A. (Union Bank), on December
3, 2012, with Union Bank continuing as the surviving entity. In the
transaction, Union Bank acquired $3.8 billion in loans held for investment and
$4.7 billion in deposits, as of December 1, 2012.

On October 26, 2012, the Company completed the acquisition of Smartstreet,
formerly a division of PNC Bank, N.A., which provides banking services
nationwide to homeowners associations (HOA) and community association
management companies. In the transaction, Union Bank acquired approximately $1
billion in deposits.

Summary of Fourth Quarter Results

Fourth Quarter Total Revenue

For fourth quarter 2012, total revenue (net interest income plus noninterest
income) was $889 million, up $46 million, or 5 percent, compared with third
quarter 2012. Net interest income increased 2 percent, and noninterest income
increased 17 percent. The net interest margin was 3.23 percent, down 9 basis
points compared with 3.32 percent for the prior quarter.

Net interest income for fourth quarter 2012 was $668 million, up $14 million,
or 2 percent, compared with third quarter 2012. The increase in net interest
income was primarily due to an increase in loans held for investment, which
included organic growth and the PCBC acquisition. The net interest margin
declined primarily due to a higher level of interest bearing deposits in banks
and a lower yield on securities.

Average total loans, excluding PCI loans, increased $1.9 billion, or 3
percent, compared with third quarter 2012, primarily due to organic growth in
commercial and industrial loans and residential mortgage loans, and the PCBC
acquisition. Deposit balances grew significantly during the quarter, primarily
due to the PCBC and Smartstreet acquisitions. Average interest bearing
deposits increased $2.9 billion, or 7 percent, and average noninterest bearing
deposits increased $2.3 billion, or 11 percent.

For fourth quarter 2012, noninterest income was $221 million, up $32 million,
or 17 percent, compared with third quarter 2012. Higher other noninterest
income, which increased primarily due to a gain on the sale of Visa, Inc.,
Class B common shares and higher gains on the sale of private equity
investments, was partially offset by lower gains on the sale of securities.

Compared to fourth quarter 2011, total revenue grew $98 million, with net
interest income up 4 percent and noninterest income up 46 percent. Net
interest income increased $28 million compared with the year-ago quarter,
primarily due to loan growth. The net interest margin declined 6 basis points,
primarily due to a higher level of interest bearing deposits in banks and a
lower yield on securities.

Average total loans, excluding PCI loans, increased $5.2 billion, or 10
percent, compared with fourth quarter 2011, primarily due to organic growth in
commercial and industrial loans and residential mortgage loans, as well as the
PCBC acquisition. Average interest bearing deposits increased $3.0 billion, or
7 percent, and average noninterest bearing deposits increased $3.7 billion, or
19 percent.

Noninterest income increased $70 million, or 46 percent, compared with fourth
quarter 2011, primarily due to higher other noninterest income and higher net
gains on the sale of securities related to portfolio rebalancing activities.
Other noninterest income increased primarily due to the fourth quarter 2012
gain on the sale of Visa, Inc., Class B common shares and higher gains on
private equity investments.

Fourth Quarter Noninterest Expense

Noninterest expense for fourth quarter 2012 was $715 million, up $77 million,
or 12 percent, compared with third quarter 2012. One-time merger costs and
ongoing operating expenses related to acquisitions, primarily the PCBC
acquisition, accounted for $56 million of the increase. The remaining $21
million of the increase was primarily due to higher professional and outside
services expense, most of which increased due to various regulatory and
compliance projects.

Noninterest expense for fourth quarter 2012 was up $96 million, or 16 percent,
compared with fourth quarter 2011, primarily due to the same reasons as the
sequential quarter increase.

Full Year 2012 Results

For full year 2012, net income was $629 million, compared with net income of
$778 million for full year 2011. The $149 million decrease in net income was
primarily due to the after-tax effect of a $239 million increase in total
provision for credit losses.

Total revenue for full year 2012 was $3.4 billion, an increase of $127
million, or 4 percent, compared with 2011. Net interest income increased $156
million, or 6 percent, primarily due to higher average earning assets and
higher interest income on PCI loans. Noninterest income decreased $29 million,
or 4 percent. Noninterest expense increased $151 million, or 6 percent,
primarily due to a $94 million increase in salaries and employee benefits
expense, which increased primarily due to higher pension expense and merger
costs related to acquisitions. The effective tax rate for full year 2012 was
26.5 percent, compared with an effective tax rate of 29.4 percent for 2011.
The decrease in the effective tax rate was primarily due to the impact of
tax-exempt income and tax credits on lower pretax income in 2012.

Balance Sheet

At December 31, 2012, the Company had total assets of $97.0 billion, up $7.3
billion, or 8 percent, compared with December 31, 2011. Loan growth accounted
for most of the increase in assets during the year. At December 31, 2012,
total deposits were $74.3 billion, up $9.8 billion, or 15 percent, compared
with December 31, 2011. Core deposits at December 31, 2012, were $63.8
billion, up $10.9 billion, or 21 percent, compared with December 31, 2011.

Credit Quality

Excluding PCI loans and FDIC covered OREO, nonperforming assets ended the
quarter at $520 million, or 0.54 percent of total assets; down from $526
million, or 0.60 percent of total assets, at September 30, 2012; and down from
$618 million, or 0.70 percent of total assets, at December 31, 2011.

Excluding PCI loans, net charge-offs were less than $1 million for fourth
quarter 2012. This was down from net charge-offs of $40 million, or an
annualized 0.29 percent of average total loans, for third quarter 2012, and
down from net charge-offs of $29 million, or an annualized 0.21 percent of
average total loans, for fourth quarter 2011. Third quarter 2012 included $17
million in residential mortgage and home equity net charge-offs resulting from
the implementation of new regulatory guidance.

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 2012, the provision for
loan losses was a benefit of $5 million and the reversal of provision for
losses on off-balance sheet commitments was a benefit of $10 million, for a
total benefit of $15 million for fourth quarter 2012. This compares with a
total provision for credit losses of $41 million for third quarter 2012. The
primary drivers of the lower provision were lower charge-offs in the consumer
loan portfolio, higher net recoveries in the commercial loan portfolio, and
improved credit quality across the entire portfolio.

The allowance for credit losses as a percent of total loans, excluding PCI
loans, was 1.31 percent at December 31, 2012, compared with 1.43 percent at
September 30, 2012, and 1.67 percent at December 31, 2011. The allowance for
credit losses as a percent of nonaccrual loans, excluding PCI loans, was 162
percent at December 31, 2012, compared with 155 percent at September 30, 2012,
and 149 percent at December 31, 2011.

Capital

At December 31, 2012, the Company’s stockholder’s equity was $12.5 billion, up
$929 million, or 8 percent, since December 31, 2011, and tangible common
equity was $9.3 billion, up $430 million, or 5 percent, since December 31,
2011. The Company’s tangible common equity ratio was 9.92 percent at December
31, 2012, down 28 basis points from 10.20 percent at December 31, 2011,
primarily due to the PCBC acquisition. The Basel I Tier 1 common and Tier 1
risk-based capital ratios were 12.35 percent and 12.44 percent, respectively,
at December 31, 2012. Additionally, the Basel I Total risk-based capital ratio
was 13.93 percent at December 31, 2012.

Non-GAAP Financial Measures

This press release contains certain references to financial measures
identified as excluding privatization transaction impact, foreclosed asset
expense and other credit costs, (reversal of) provision for losses on
off-balance sheet commitments, productivity initiative costs and gains, low
income housing credit (LIHC) investment amortization expense, expenses of the
LIHC consolidated variable interest entities, merger costs related to
acquisitions, debt termination fees from balance sheet repositioning, or gains
from securities associated with debt termination fees from balance sheet
repositioning, 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 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 $97.0 billion at December 31, 2012. 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 447 branches in
California, Washington, Oregon, Texas, Illinois, and New York as well as two
international offices, on December 31, 2012. 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, 2012 from
                   December       September     June 30,       March 31,      December     September     December
                   31,            30,                                         31,          30,           31,
(Dollars in        2012           2012          2012           2012           2011         2012        2011
millions)
Results of
operations:
Net interest       $ 668          $  654        $ 659          $ 653          $ 640        2         %   4
income
Noninterest         221           189         175          202          151        17            46
income
Total revenue        889             843          834            855            791        5             12
Noninterest         715           638         599          614          619        12            16
expense
Pre-tax,
pre-provision        174             205          235            241            172        (15   )       1
income ^(1)
(Reversal of)
provision for       (5     )       45          (14    )      (1     )      7          111           (171  )
loan losses
Income before
income taxes
and including        179             160          249            242            165        12            8
noncontrolling
interests
Income tax          60            42          67           51           40         43            50
expense
Net income
including            119             118          182            191            125        1             (5    )
noncontrolling
interests
Deduct: Net
loss from           4             6           5            4            4          (33   )       -
noncontrolling
interests
Net income
attributable
to UnionBanCal     $ 123         $  124        $ 187         $ 195         $ 129        (1    )       (5    )
Corporation
(UNBC)
                                                                                                         
Balance sheet
(end of
period):
Total assets       $ 96,992       $  88,185     $ 87,939       $ 92,323       $ 89,676     10            8
Total                22,455          22,089       22,890         25,432         24,106     2             (7    )
securities
Total loans
held for             60,034          55,410       54,291         54,322         53,540     8             12
investment
Core deposits        63,769          55,141       53,378         53,125         52,840     16            21
^(2)
Total deposits       74,255          65,143       63,443         65,089         64,420     14            15
Long-term debt       5,622           5,540        6,444          5,554          6,684      1             (16   )
UNBC
stockholder's        12,491          12,437       12,076         11,821         11,562     -             8
equity
                                                                                                         
Balance sheet
(period
average):
Total assets       $ 92,051       $  87,881     $ 89,479       $ 89,449       $ 87,079     5             6
Total                21,903          22,496       24,223         24,265         22,721     (3    )       (4    )
securities
Total loans
held for             57,242          55,285       54,937         54,149         52,365     4             9
investment
Earning assets       82,776          79,137       80,625         80,503         78,007     5             6
Total deposits       69,601          64,420       64,499         64,425         62,848     8             11
UNBC
stockholder's        12,559          12,209       11,905         11,621         11,646     3             8
equity
                                                                                                         
Performance
ratios:
Return on
average assets       0.54     %      0.56   %     0.84     %     0.88     %     0.59   %
^(3)
Return on
average UNBC         3.93            4.03         6.32           6.75           4.39
stockholder's
equity ^(3)
Return on
average assets
excluding the
impact of
privatization
transaction          0.68            0.62         0.90           0.93           0.66
and merger
costs related
to
acquisitions
^(3) (4)
Return on
average
stockholder's
equity
excluding the
impact of
privatization        5.93            5.38         8.22           8.73           6.03
transaction
and merger
costs related
to
acquisitions
^(3) (4)
Efficiency           80.45           75.61        71.83          71.86          78.27
ratio ^ (5)
Adjusted
efficiency           70.29           68.37        66.18          68.76          69.12
ratio ^(5)
Net interest
margin ^(3)          3.23            3.32         3.29           3.27           3.29
(6)
                                                                                                         
Capital
ratios:
Tier 1
risk-based           12.44    %      13.77  %     13.78    %     13.73    %     13.82  %
capital ratio
^(7)
Total
risk-based           13.93           15.51        15.54          15.77          15.98
capital ratio
^(7)
Leverage ratio       11.18           12.03        11.58          11.35          11.44
^(7)
Tier 1 common
capital ratio        12.35           13.77        13.78          13.73          13.82
^(7) (8)
Tangible
common equity        9.92            11.46        11.04          10.20          10.20
ratio ^(9)

Refer to
Exhibit 14 for
footnote
explanations.



UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 2
                                                            
                                                                Percent Change
                                                                to
                              As of and for the Year Ended      December 31,
                                                                2012 from
                              December 31,     December 31,     December 31,
(Dollars in millions)         2012             2011             2011
Results of operations:
Net interest income           $   2,634        $  2,478             6       %
Noninterest income               787            816              (4   )
Total revenue                     3,421           3,294             4
Noninterest expense              2,566          2,415            6
Pre-tax, pre-provision            855             879               (3   )
income ^(1)
(Reversal of) provision          25             (202    )         112
for loan losses
Income before income
taxes and including               830             1,081             (23  )
noncontrolling interests
Income tax expense               220            318              (31  )
Net income including              610             763               (20  )
noncontrolling interests
Deduct: Net loss from            19             15               27
noncontrolling interests
Net income attributable       $   629          $  778              (19  )
to UNBC
                                                                            
Balance sheet (end of
period):
Total assets                  $   96,992       $  89,676            8
Total securities                  22,455          24,106            (7   )
Total loans held for              60,034          53,540            12
investment
Core deposits ^(2)                63,769          52,840            21
Total deposits                    74,255          64,420            15
Long-term debt                    5,622           6,684             (16  )
UNBC stockholder's equity         12,491          11,562            8
                                                                            
Balance sheet (period
average):
Total assets                  $   89,716       $  82,435            9
Total securities                  23,216          21,001            11
Total loans held for              55,407          49,939            11
investment
Earning assets                    80,761          73,610            10
Total deposits                    65,743          60,066            9
UNBC stockholder's equity         12,075          10,726            13
                                                                            
Performance ratios:
Return on average assets          0.70     %      0.94      %
^(3)
Return on average UNBC            5.21            7.25
stockholder's equity ^(3)
Return on average assets
excluding the impact of
privatization transaction         0.78            1.03
and merger costs related
to acquisitions^(3) (4)
Return on average
stockholders' equity
excluding the impact of           7.02            9.85
privatization transaction
and merger costs related
to acquisitions ^(3) (4)
Efficiency ratio ^(5)             75.01           73.32
Adjusted efficiency ratio         68.43           66.31
^ (5)
Net interest margin ^(3)          3.28            3.38
(6)
                                                                            
Capital ratios:
Tier 1 risk-based capital         12.44    %      13.82     %
ratio ^(7)
Total risk-based capital          13.93           15.98
ratio ^(7)
Leverage ratio ^(7)               11.18           11.44
Tier 1 common capital             12.35           13.82
ratio ^(7) (8)
Tangible common equity            9.92            10.20
ratio ^(9)

Refer to Exhibit 14 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, 2012 from
                    December       September      June 30,         March 31,      December     September    December
                    31,            30,                                            31,          30,           31,
(Dollars in         2012           2012           2012             2012           2011         2012        2011
millions)
                                                                                                                      
Credit Data:
(Reversal of)
provision for
loan losses,        $ (3     )     $ 43           $ (13    )       $ 1            $ 7          (107   )  %   (143  )  %
excluding FDIC
covered loans
(Reversal of)
provision for
FDIC covered          (2     )       2              (1     )         (2     )       -          (200   )      (100  )
loan losses not
subject to FDIC
indemnification
(Reversal of)
provision for
losses on            (10    )      (4     )      (1     )        (2     )      2          (150   )      nm
off-balance
sheet
commitments
Total (reversal
of) provision       $ (15    )     $ 41          $ (15    )       $ (3     )     $ 9          (137   )      (267  )
for credit
losses
Net loans           $ 5            $ 42           $ 31             $ 53           $ 28         (88    )      (82   )
charged off
Nonperforming         616            637            658              706            782        (3     )      (21   )
assets
Criticized
loans held for        1,277          1,520          1,443            1,620          2,007      (16    )      (36   )
investment
^(10)
                                                                                               -             -
Credit Ratios:
Allowance for
loan losses to:
Total loans
held for              1.09     %     1.21     %     1.21       %     1.30     %     1.43   %
investment
Nonaccrual            129.47         125.12         118.63           121.35         119.58
loans
Allowance for
credit losses
to ^(11) :
Total loans
held for              1.28           1.43           1.45             1.54           1.68
investment
Nonaccrual            152.67         148.80         142.20           144.01         140.46
loans
Net loans
charged off to
average total         0.03           0.30           0.22             0.40           0.21
loans held for
investment ^(3)
Nonperforming
assets to total
loans held for
investment and        1.02           1.15           1.21             1.30           1.46
Other Real
Estate Owned
(OREO)
Nonperforming
assets to total       0.63           0.72           0.75             0.76           0.87
assets
Nonaccrual
loans to total        0.84           0.96           1.02             1.07           1.19
loans held for
investment
                                                                                                                      
Excluding
purchased
credit-impaired
loans and FDIC
covered OREO
^(12):
Allowance for
loan losses to:
Total loans
held for              1.11     %     1.20     %     1.22       %     1.30     %     1.42   %
investment
Nonaccrual            137.40         130.29         127.22           129.95         126.26
loans
Allowance for
credit losses
to ^(11) :
Total loans
held for              1.31           1.43           1.46             1.54           1.67
investment
Nonaccrual            162.05         155.39         152.64           154.55         148.80
loans
Net loans
charged off to
average total         0.01           0.29           0.21             0.41           0.21
loans held for
investment ^(3)
Nonperforming
assets to total
loans held for        0.88           0.96           1.01             1.04           1.17
investment and
OREO
Nonperforming
assets to total       0.54           0.60           0.62             0.61           0.70
assets
Nonaccrual
loans to total        0.81           0.92           0.96             1.00           1.12
loans held for
investment
                                                                   
                                                                                                                      
                    As of and for the             Percent Change to
                    Years Ended                   December 31, 2012 from
                    December       December       December 31,
                    31,            31,
(Dollars in         2012           2011           2011
millions)
                                                                                                                      
Credit Data:
(Reversal of)
provision for
loan losses,        $ 28           $ (200   )             114   %   
excluding FDIC
covered loans
(Reversal of)
provision for
FDIC covered          (3     )       (2     )             (50 )
loan losses not
subject to FDIC
indemnification
(Reversal of)
provision for
losses on            (17    )      (29    )             41
off-balance
sheet
commitments
Total (reversal
of) provision       $ 8           $ (231   )             103
for credit
losses
Net loans           $ 131          $ 236                  (44 )
charged off
Nonperforming         616            782                  (21 )
assets
                                                                                                                      
Credit Ratios:
Net loans
charged off to
average total         0.24     %     0.47     %
loans held for
investment ^(3)
Nonperforming
assets to total       0.63           0.87
assets
                                                                                                                      
Excluding
purchased
credit-impaired
loans and FDIC
covered OREO
^(12):
Net loans
charged off to
average total         0.23     %     0.48     %
loans held for
investment ^(3)
Nonperforming
assets to total       0.54           0.70
assets

Refer to
Exhibit 14 for
footnote
explanations.
                                                                                                                      


UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 4
                                                           
                   For the Three Months Ended
                   December     September     June        March       December
                   31,          30,           30,         31,         31,
(Dollars in        2012         2012          2012        2012        2011
millions)
Interest
Income
Loans              $  642       $  621        $ 621       $ 606       $  603
Securities            122          129          134         142          134
Other                3          1          -         2          2   
Total interest       767        751        755       750        739 
income
                                                                      
Interest
Expense
Deposits              62           56           57          58           57
Commercial
paper and
other                 1            2            3           3            1
short-term
borrowings
Long-term debt       36         39         36        36         41  
Total interest       99         97         96        97         99  
expense
                                                                      
Net Interest          668          654          659         653          640
Income
(Reversal of)
provision for        (5  )       45         (14 )      (1  )       7   
loan losses
Net interest
income after
(reversal of)        673        609        673       654        633 
provision for
loan losses
                                                                      
Noninterest
Income
Service
charges on            51           51           52          55           53
deposit
accounts
Trust and
investment            33           29           27          30           31
management
fees
Trading
account               33           26           25          31           38
activities
Merchant              23           24           19          23           22
banking fees
Securities            20           41           28          19           -
gains, net
Brokerage
commissions           12           11           11          10           10
and fees
Card
processing            8            8            8           8            9
fees, net
Other                41         (1   )      5         26         (12 )
Total
noninterest          221        189        175       202        151 
income
                                                                      
Noninterest
Expense
Salaries and
employee              408          356          351         364          347
benefits
Net occupancy         70           65           64          68           71
and equipment
Professional
and outside           81           54           47          46           55
services
Intangible
asset                 19           20           21          21           32
amortization
Regulatory            17           14           16          18           15
assessments
(Reversal of)
provision for
losses on             (10 )        (4   )       (1  )       (2  )        2
off-balance
sheet
commitments
Other                130        133        101       99         97  
Total
noninterest          715        638        599       614        619 
expense
                                                                      
Income before
income taxes
and including         179          160          249         242          165
noncontrolling
interests
Income tax           60         42         67        51         40  
expense
Net Income
including             119          118          182         191          125
Noncontrolling
Interests
Deduct: Net
loss from            4          6          5         4          4   
noncontrolling
interests
                                                                             
Net Income
attributable       $  123      $  124       $ 187      $ 195      $  129 
to UNBC
                                                                             


UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 5
                                                             
                                                 For the Years Ended
                                                 December 31,     December 31,
(Dollars in millions)                            2012             2011
Interest Income
Loans                                            $  2,490         $  2,303
Securities                                          527              538
Other                                              6              8      
Total interest income                              3,023          2,849  
                                                                  
Interest Expense
Deposits                                            233              216
Commercial paper and other short-term               9                6
borrowings
Long-term debt                                     147            149    
Total interest expense                             389            371    
                                                                  
Net Interest Income                                 2,634            2,478
(Reversal of) provision for loan losses            25             (202   )
Net interest income after (reversal of)            2,609          2,680  
provision for loan losses
                                                                  
Noninterest Income
Service charges on deposit accounts                 209              206
Trust and investment management fees                119              132
Trading account activities                          115              126
Securities gains, net                               108              58
Merchant banking fees                               89               97
Brokerage commissions and fees                      44               47
Card processing fees, net                           32               59
Other                                              71             91     
Total noninterest income                           787            816    
                                                                  
Noninterest Expense
Salaries and employee benefits                      1,479            1,385
Net occupancy and equipment                         267              267
Professional and outside services                   228              209
Intangible asset amortization                       81               106
Regulatory assessments                              65               69
(Reversal of) provision for losses on               (17    )         (29    )
off-balance sheet commitments
Other                                              463            408    
Total noninterest expense                          2,566          2,415  
                                                                  
Income before income taxes and including            830              1,081
noncontrolling interests
Income tax expense                                 220            318    
Net Income including Noncontrolling                 610              763
Interests
Deduct: Net loss from noncontrolling               19             15     
interests
                                                                            
Net Income attributable to UNBC                  $  629          $  778    
                                                                            


UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
Exhibit 6
                                                                     
                    December       September      June 30,       March 31,      December
                    31,            30,                                          31,
(Dollars in
millions except     2012           2012           2012           2012           2011
for per share
amount)
Assets
Cash and due        $ 1,845        $ 1,237        $ 1,396        $ 1,371        $ 1,419
from banks
Interest
bearing               3,477          1,703          1,479          3,260          2,764
deposits in
banks
Federal funds
sold and
securities           169          32           46           8            12     
purchased under
resale
agreements
Total cash and
cash                  5,491          2,972          2,921          4,639          4,195
equivalents
Trading account
assets
(includes $1 at
December 31,
2012; $3 at
September 30,
2012; $34 at          1,208          1,236          1,237          1,177          1,135
June 30, 2012;
$3 at March 31,
2012; and $14
at December 31,
2011 of assets
pledged as
collateral)
Securities
available for         21,352         20,907         20,545         23,366         22,833
sale
Securities held
to maturity
(Fair value:
December 31,
2012, $1,135;
September 30,
2012, $1,224;         1,103          1,182          2,345          2,066          1,273
June 30, 2012,
$2,536; March
31, 2012,
$2,278; and
December 31,
2011, $1,429)
Loans held for        60,034         55,410         54,291         54,322         53,540
investment
Allowance for        (653   )      (668   )      (656   )      (704   )      (764   )
loan losses
Loans held for        59,381         54,742         53,635         53,618         52,776
investment, net
Premises and          710            637            649            663            684
equipment, net
Intangible            376            298            318            341            360
assets, net
Goodwill              2,942          2,457          2,457          2,456          2,457
FDIC
indemnification       338            401            449            521            598
asset
Other assets         4,091        3,353        3,383        3,476        3,365  
Total assets        $ 96,992      $ 88,185      $ 87,939      $ 92,323      $ 89,676 
                                                                                
Liabilities
Deposits:
Noninterest         $ 25,478       $ 21,490       $ 20,777       $ 20,488       $ 20,598
bearing
Interest             48,777       43,653       42,666       44,601       43,822 
bearing
Total deposits        74,255         65,143         63,443         65,089         64,420
Commercial
paper and other       1,363          2,091          3,035          6,680          3,683
short-term
borrowings
Long-term debt        5,622          5,540          6,444          5,554          6,684
Trading account       895            952            976            922            1,040
liabilities
Other                2,102        1,763        1,712        1,996        2,019  
liabilities
Total                84,237       75,489       75,610       80,241       77,846 
liabilities
                                                                                
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        136            136            136            136            136
31, 2012,
September 30,
2012, June 30,
2012, March 31,
2012 and
December 31,
2011
Additional            5,994          5,989          5,985          5,992          5,989
paid-in capital
Retained              6,875          6,752          6,628          6,441          6,246
earnings
Accumulated
other                (514   )      (440   )      (673   )      (748   )      (809   )
comprehensive
loss
Total UNBC
stockholder's         12,491         12,437         12,076         11,821         11,562
equity
Noncontrolling       264          259          253          261          268    
interests
Total equity         12,755       12,696       12,329       12,082       11,830 
Total
liabilities and     $ 96,992      $ 88,185      $ 87,939      $ 92,323      $ 89,676 
equity
                                                                                


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 7
                                                                                
                        For the Three Months Ended
                        December 31, 2012                       September 30, 2012
                                       Interest     Average                    Interest     Average
                        Average        Income/      Yield/      Average        Income/      Yield/
(Dollars in             Balance        Expense      Rate        Balance        Expense      Rate
millions)                              ^(6)         ^(3)(6)                    ^(6)         ^(3)(6)
Assets
Loans held for
investment: ^(13)
Commercial and          $ 20,585       $   195      3.78    %   $ 20,389       $   192      3.75    %
industrial
Commercial mortgage       8,814            91       4.12          8,064            81       4.02
Construction              687              8        4.24          650              6        3.76
Lease financing           987              11       4.50          982              10       4.10
Residential               21,914           220      4.01          21,022           218      4.17
mortgage
Home equity and
other consumer           3,527          33       3.79         3,557          34       3.74
loans
Loans, before
purchased                 56,514           558      3.94          54,664           541      3.96
credit-impaired
loans
Purchased
credit-impaired          728            85       46.39        621            80       51.23
loans
Total loans held          57,242           643      4.48          55,285           621      4.49
for investment
Securities                21,903           125      2.28          22,496           132      2.34
Interest bearing          3,250            2        0.26          941              -        0.24
deposits in banks
Federal funds sold
and securities            79               -        0.20          62               -        0.19
purchased under
resale agreements
Trading account           140              -        0.35          228              1        0.53
assets
Other earning            162            -        0.49         125            -        0.15
assets
Total earning             82,776          770      3.71          79,137          754      3.81
assets
Allowance for loan        (673   )                                (657   )
losses
Cash and due from         1,375                                   1,258
banks
Premises and              663                                     646
equipment, net
Other assets             7,910                                 7,497  
Total assets            $ 92,051                               $ 87,881 
Liabilities
Interest bearing
deposits:
Transaction and
money market            $ 28,988           18       0.25        $ 26,517           15       0.23
accounts
Savings                   5,436            2        0.14          5,222            2        0.16
Time                     11,571         42       1.42         11,361         39       1.39
Total interest           45,995         62       0.53         43,100         56       0.53
bearing deposits
Commercial paper
and other                 1,482            1        0.28          2,541            2        0.25
short-term
borrowings ^(14)
Long-term debt           5,562          36       2.61         5,963          39       2.57
Total borrowed           7,044          37       2.12         8,504          41       1.88
funds
Total interest            53,039          99       0.74          51,604          97       0.75
bearing liabilities
Noninterest bearing       23,606                                  21,320
deposits
Other liabilities        2,588                                 2,494  
Total liabilities         79,233                                  75,418
Equity
UNBC Stockholder's        12,559                                  12,209
equity
Noncontrolling           259                                   254    
interests
Total equity             12,818                                12,463 
Total liabilities       $ 92,051                               $ 87,881 
and equity
                                                                                                    
Net interest
income/spread                              671      2.97    %                      657      3.06    %
(taxable-equivalent
basis)
Impact of
noninterest bearing                                 0.23                                    0.22
deposits
Impact of other
noninterest bearing                                 0.03                                    0.04
sources
Net interest margin                                 3.23                                    3.32
Less:
taxable-equivalent                        3                                      3
adjustment
Net interest income                    $   668                                 $   654
                   
Refer to Exhibit 14
for footnote
explanations.
                                                                                                    

                                                                                                    
UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 8
                                                                                
                        For the Three Months Ended
                        December 31, 2012                       December 31, 2011
                                       Interest     Average                    Interest     Average
                        Average        Income/      Yield/      Average        Income/      Yield/
(Dollars in             Balance        Expense      Rate        Balance        Expense      Rate
millions)                              ^(6)         ^(3)(6)                    ^(6)         ^(3)(6)
Assets
Loans held for
investment: ^(13)
Commercial and          $ 20,585       $   195      3.78    %   $ 18,268       $   174      3.77    %
industrial
Commercial mortgage       8,814            91       4.12          8,086            84       4.12
Construction              687              8        4.24          893              9        3.77
Lease financing           987              11       4.50          1,073            14       5.45
Residential               21,914           220      4.01          19,298           223      4.61
mortgage
Home equity and
other consumer           3,527          33       3.79         3,728          38       4.03
loans
Loans, before
purchased                 56,514           558      3.94          51,346           542      4.20
credit-impaired
loans
Purchased
credit-impaired          728            85       46.39        1,019          63       24.88
loans
Total loans held          57,242           643      4.48          52,365           605      4.60
for investment
Securities                21,903           125      2.28          22,721           134      2.36
Interest bearing          3,250            2        0.26          2,591            2        0.26
deposits in banks
Federal funds sold
and securities            79               -        0.20          61               -        0.16
purchased under
resale agreements
Trading account           140              -        0.35          141              -        0.65
assets
Other earning            162            -        0.49         128            -        0.33
assets
Total earning             82,776          770      3.71          78,007          741      3.79
assets
Allowance for loan        (673   )                                (780   )
losses
Cash and due from         1,375                                   1,342
banks
Premises and              663                                     678
equipment, net
Other assets             7,910                                 7,832  
Total assets            $ 92,051                               $ 87,079 
Liabilities
Interest bearing
deposits:
Transaction and
money market            $ 28,988           18       0.25        $ 24,763           14       0.22
accounts
Savings                   5,436            2        0.14          5,338            3        0.17
Time                     11,571         42       1.42         12,863         40       1.23
Total interest           45,995         62       0.53         42,964         57       0.51
bearing deposits
Commercial paper
and other                 1,482            1        0.28          2,733            1        0.23
short-term
borrowings ^(14)
Long-term debt           5,562          36       2.61         6,977          41       2.35
Total borrowed           7,044          37       2.12         9,710          42       1.75
funds
Total interest            53,039          99       0.74          52,674          99       0.74
bearing liabilities
Noninterest bearing       23,606                                  19,884
deposits
Other liabilities        2,588                                 2,606  
Total liabilities         79,233                                  75,164
Equity
UNBC Stockholder's        12,559                                  11,646
equity
Noncontrolling           259                                   269    
interests
Total equity             12,818                                11,915 
Total liabilities       $ 92,051                               $ 87,079 
and equity
                                                                                                    
Net interest
income/spread                              671      2.97    %                      642      3.05    %
(taxable-equivalent
basis)
Impact of
noninterest bearing                                 0.23                                    0.20
deposits
Impact of other
noninterest bearing                                 0.03                                    0.04
sources
Net interest margin                                 3.23                                    3.29
Less:
taxable-equivalent                        3                                      2
adjustment
Net interest income                    $   668                                 $   640

Refer to Exhibit 14
for footnote
explanations.
                                                                                                    


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 9
                                                                                
                        For the Years Ended
                        December 31, 2012                       December 31, 2011
                                       Interest     Average                    Interest     Average
                        Average        Income/      Yield/      Average        Income/      Yield/
(Dollars in             Balance        Expense      Rate        Balance        Expense      Rate
millions)                              ^(6)         ^(3)(6)                    ^(6)         ^(3)(6)
Assets
Loans held for
investment: ^(13)
Commercial and          $ 20,196       $  768       3.80    %   $ 16,598       $  650       3.92    %
industrial
Commercial mortgage       8,357           339       4.06          7,858           335       4.26
Construction              712             30        4.15          1,084           44        4.04
Lease financing           1,001           43        4.30          830             38        4.60
Residential               20,778          874       4.21          18,562          885       4.77
mortgage
Home equity and
other consumer           3,602         138       3.83         3,771         158       4.20
loans
Loans, before
purchased                 54,646          2,192     4.01          48,703          2,110     4.33
credit-impaired
loans
Purchased
credit-impaired          761           304       39.92        1,236         201       16.29
loans
Total loans held          55,407          2,496     4.50          49,939          2,311     4.63
for investment
Securities                23,216          534       2.30          21,001          539       2.57
Interest bearing          1,756           4         0.26          2,373           7         0.25
deposits in banks
Federal funds sold
and securities            67              -         0.21          72              -         0.12
purchased under
resale agreements
Trading account           173             1         0.52          149             1         0.80
assets
Other earning            142           -         0.25         76            -         0.73
assets
Total earning             80,761         3,035     3.76          73,610         2,858     3.88
assets
Allowance for loan        (701   )                                (933   )
losses
Cash and due from         1,318                                   1,263
banks
Premises and              660                                     689
equipment, net
Other assets             7,678                                 7,806  
Total assets            $ 89,716                               $ 82,435 
Liabilities
Interest bearing
deposits:
Transaction and
money market            $ 26,696          61        0.23        $ 24,434          57        0.23
accounts
Savings                   5,312           8         0.15          5,226           12        0.23
Time                     12,368        164       1.32         11,994        147       1.22
Total interest           44,376        233       0.53         41,654        216       0.52
bearing deposits
Commercial paper
and other                 3,256           9         0.27          2,663           6         0.23
short-term
borrowings ^(14)
Long-term debt           5,820         147       2.53         6,578         149       2.27
Total borrowed           9,076         156       1.72         9,241         155       1.68
funds
Total interest            53,452         389       0.73          50,895         371       0.73
bearing liabilities
Noninterest bearing       21,367                                  18,412
deposits
Other liabilities        2,562                                 2,133  
Total liabilities         77,381                                  71,440
Equity
UNBC Stockholder's        12,075                                  10,726
equity
Noncontrolling           260                                   269    
interests
Total equity             12,335                                10,995 
Total liabilities       $ 89,716                               $ 82,435 
and equity
                                                                                                    
Net interest
income/spread                             2,646     3.03    %                     2,487     3.15    %
(taxable-equivalent
basis)
Impact of
noninterest bearing                                 0.21                                    0.19
deposits
Impact of other
noninterest bearing                                 0.04                                    0.04
sources
Net interest margin                                 3.28                                    3.38
Less:
taxable-equivalent                       12                                     9
adjustment
Net interest income                    $  2,634                                $  2,478
                   
Refer to Exhibit 14
for footnote
explanations.
                                                                                                    

*Story too large*

UnionBanCal Corporation and Subsidiaries
Loans and Nonperforming Assets (Unaudited)
Exhibit 10
                                                           
                 December     September     June 30,     March        December
                 31,          30,                        31,          31,
(Dollars in      2012         2012          2012         2012         2011
millions)
                                                                      
Loans held
for
investment
(period end)
Loans held
for
investment:
Commercial
and              $ 20,827     $  20,124     $ 19,465     $ 19,429     $ 19,226
industrial
Commercial         9,939
mortgage

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