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UnionBanCal Corporation Reports Fourth Quarter Net Income of $179 Million, Full Year Net Income of $667 Million

  UnionBanCal Corporation Reports Fourth Quarter Net Income of $179 Million,
  Full Year Net Income of $667 Million

Fourth Quarter Highlights:

  *Net income for the fourth quarter was $179 million, down from $198 million
    for the prior quarter, and up from $123 million for the year-ago quarter.
  *Total loans held for investment, excluding purchased credit-impaired (PCI)
    loans, at December 31, 2013, were $67.2 billion, up from $65.9 billion at
    September 30, 2013, and up from $58.8 billion at December 31, 2012.
  *Core deposits at December 31, 2013, were $69.2 billion, up from $68.3
    billion at September 30, 2013, and up from $63.8 billion at December 31,
    2012.
  *Total provision for credit losses was a benefit of $21 million, compared
    with a benefit of $15 million in each of the prior and year-ago quarters.
  *Key asset quality metrics continued to be strong. Excluding PCI loans and
    Federal Deposit Insurance Corporation (FDIC) covered other real estate
    owned (OREO):

       *Nonperforming assets at quarter-end were $447 million, or 0.43
         percent of total assets, compared with $513 million, or 0.49 percent
         of total assets, at September 30, 2013.
       *Net charge-offs were $18 million for the quarter, or an annualized
         0.11 percent of average total loans held for investment, compared
         with $1 million for the prior quarter and less than $1 million a year
         ago.

  *Net interest margin was 2.99 percent for the fourth quarter, flat from the
    prior quarter, and down from 3.21 percent for the year-ago quarter.
  *Capital ratios remained strong:

       *Basel I Tier 1 and Total risk-based capital ratios were 12.44 percent
         and 14.64 percent, respectively, at December 31, 2013. Basel I Tier 1
         common capital ratio was 12.37 percent at December 31, 2013, up 127
         basis points from 11.10 percent at September 30, 2013.
       *Tangible common equity ratio was 10.54 percent at December 31, 2013,
         up 153 basis points from 9.01 percent at September 30, 2013.

  *UnionBanCal Corporation received a $1.2 billion capital contribution from
    its parent, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), and issued $300
    million of subordinated debt to BTMU.

Full Year Highlights:

  *Net income was $667 million, up from $628 million for the prior year.
  *Total provision for credit losses was a benefit of $29 million, compared
    with a provision of $8 million for the prior year.
  *Excluding PCI loans, net charge-offs were $41 million, or 0.06 percent of
    average total loans, down from $123 million, or 0.23 percent of average
    total loans, for the prior year.

Business Wire

SAN FRANCISCO -- January 28, 2014

UnionBanCal Corporation (the Company), parent company of San Francisco-based
Union Bank, N.A., today reported fourth quarter 2013 results. Net income for
the quarter was $179 million, down from $198 million for the prior quarter,
and up from $123 million for the year-ago quarter. Net income decreased
compared to the prior quarter primarily due to lower gains on the sale of
securities and higher compensation expense, partially offset by higher loan
growth.

On November 22, 2013, Union Bank, N.A. announced that it had completed the
acquisition of First Bank Association Bank Services, which provides a full
range of banking services to homeowners associations (HOA) and community
management companies. The acquisition brought to Union Bank approximately $550
million in deposits.

Summary of Fourth Quarter Results

Fourth Quarter Total Revenue

For fourth quarter 2013, total revenue (net interest income plus noninterest
income) was $896 million, down $23 million compared with third quarter 2013.
Net interest income increased 3 percent, and noninterest income decreased 19
percent.

Net interest income for fourth quarter 2013 was $706 million, up $21 million,
or 3 percent, compared with third quarter 2013. The increase in net interest
income was primarily due to growth in average earning assets. Average total
loans held for investment, excluding PCI loans, increased $1.3 billion, or 2
percent, compared with third quarter 2013, primarily due to organic growth in
commercial and industrial loans and residential mortgages. The net interest
margin was 2.99 percent, flat from the prior quarter, which reflected higher
yields on loans, partially offset by the impact of higher balances on lower
yielding interest-bearing deposits in banks.

Average total deposits increased $2.3 billion, or 3 percent, during the
quarter, primarily due to organic retail deposit growth and the First Bank
Association Bank Services acquisition. Average interest bearing deposits
increased $1.1 billion, or 2 percent, and average noninterest bearing deposits
increased $1.2 billion, or 5 percent.

For fourth quarter 2013, noninterest income was $190 million, down $44
million, or 19 percent, compared with third quarter 2013, primarily due to
lower net gains on the sale of securities.

Compared to fourth quarter 2012, total revenue grew $7 million, with net
interest income up 7 percent and noninterest income down 17 percent. Net
interest income increased $46 million compared with the year-ago quarter,
primarily due to acquisitions and organic loan growth. This increase was
partially offset by a 22 basis point decline in the net interest margin,
primarily due to lower yields on loans and securities.

Average total loans held for investment, excluding PCI loans, increased $9.9
billion, or 18 percent, compared with fourth quarter 2012, primarily due to
the acquisition of Pacific Capital Bancorp (PCBC) which closed late in the
fourth quarter of 2012, the PB Capital portfolio acquisition which closed in
the second quarter of 2013, and organic loan growth. Average total deposits
increased $10.1 billion compared with the fourth quarter of 2012, primarily
due to organic growth and acquisitions, with average interest bearing deposits
up $7.6 billion, or 17 percent, and average noninterest bearing deposits up
$2.5 billion, or 11 percent.

Noninterest income decreased $39 million, or 17 percent, compared with fourth
quarter 2012, primarily due to lower net gains on the sale of securities and a
prior year gain on the sale of Visa, Inc. Class B common shares.

Fourth Quarter Noninterest Expense

Noninterest expense for fourth quarter 2013 was $689 million, flat compared
with third quarter 2013. Staff expense increased $15 million, primarily
reflecting higher salaries and benefits-related costs. Non-staff expense
decreased $15 million, primarily due to decreases in net occupancy and
equipment costs and regulatory assessments.

Noninterest expense for fourth quarter 2013 was down $26 million, or 4
percent, compared with fourth quarter 2012. This was primarily driven by
non-staff expenses, such as professional and outside services, which decreased
$17 million, primarily due to one-time costs associated with the PCBC
acquisition, which closed in the year-ago quarter.

Full Year 2013 Results

For full year 2013, net income was $667 million, compared with net income of
$628 million in 2012. The $39 million increase in net income was due to
improved credit quality, largely offset by lower pre-tax, pre-provision
income.

Total revenue for full year 2013 was $3.6 billion, an increase of $172
million, or 5 percent, compared with 2012. Net interest income increased $114
million, or 4 percent, primarily due to loan growth, partially offset by a
lower net interest margin. Noninterest income increased $58 million, or 7
percent, primarily due to higher gains on the sale of securities. Noninterest
expense increased $227 million, or 9 percent, primarily due to higher merger
and acquisition costs. The effective tax rate for full year 2013 was 23.1
percent, compared with an effective tax rate of 26.5 percent for 2012. The
decrease in the effective tax rate is primarily attributable to the
proportionately larger impact of low-income housing and alternative energy
income tax credits on pre-tax income.

Balance Sheet

At December 31, 2013, the Company had total assets of $105.9 billion, up $0.4
billion compared with September 30, 2013, primarily due to loan growth. At
December 31, 2013, total deposits were $80.1 billion, up $0.7 billion compared
with September 30, 2013, reflecting both the First Bank Association Bank
Services acquisition and organic deposit growth. Core deposits at December 31,
2013, were $69.2 billion, up $0.9 billion, compared with September 30, 2013.

Credit Quality

Credit quality continued to be strong during the fourth quarter of 2013,
reflected by continued decreases in nonperforming assets.

Excluding PCI loans and FDIC covered OREO, nonperforming assets ended the
quarter at $447 million, or 0.43 percent of total assets; compared with $513
million, or 0.49 percent of total assets, at September 30, 2013; and $520
million, or 0.54 percent of total assets, at December 31, 2012.

Excluding PCI loans and FDIC covered OREO, net charge-offs were $18 million
for fourth quarter 2013, or an annualized 0.11 percent of average total loans.
This was an increase from net charge-offs of $1 million, or an annualized 0.01
percent of average total loans, in third quarter 2013; and up from net
charge-offs of less than $1 million for fourth quarter 2012.

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 the fourth quarter 2013, the provision
for loan losses was a benefit of $23 million and the provision for losses on
off-balance sheet commitments was $2 million, for a total provision for credit
losses benefit of $21 million. This compares with a total provision for credit
losses benefit of $15 million for third quarter 2013. The primary driver of
the lower total provision was improved credit quality in the non-PCI
portfolio.

The allowance for credit losses as a percent of total loans, excluding PCI
loans, was 1.04 percent at December 31, 2013, compared with 1.12 percent at
September 30, 2013, and 1.31 percent at December 31, 2012. The allowance for
credit losses as a percent of nonaccrual loans, excluding PCI loans, was 164
percent at December 31, 2013, compared with 150 percent at September 30, 2013,
and 162 percent at December 31, 2012.

Capital

The Company’s stockholder’s equity was $14.2 billion at December 31, 2013
compared with $12.5 billion at September 30, 2013. The Basel I Tier 1 and
Total risk-based capital ratios were 12.44 percent and 14.64 percent,
respectively, at December 31, 2013 compared with 11.17 percent and 13.11
percent, respectively, at September 30, 2013. The tangible common equity ratio
was 10.54 percent at December 31, 2013, up 153 basis points from 9.01 percent
at September 30, 2013.

The Company’s capital ratios increased primarily due to the $1.2 billion BTMU
capital contribution. The Company also issued $300 million in subordinated
debt to BTMU. The subordinated debt qualifies as Tier 2 regulatory capital for
U.S. bank holding company regulatory capital purposes.

The Company expects to treat the BTMU $1.2 billion capital contribution as
Common Equity Tier 1 capital and the $300 million subordinated debt as Tier 2
capital under the final U.S. Basel III regulatory capital rules.

Non-GAAP Financial Measures

This press release contains certain references to financial measures
identified as excluding PCI loans, FDIC covered OREO, privatization
transaction impact, foreclosed asset expense, 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 intangible asset amortization, 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.

Forward-Looking Statements

The following appears in accordance with the Private Securities Litigation
Reform Act. This press release includes forward-looking statements that
involve risks and uncertainties. Forward-looking statements can be identified
by the fact that they do not relate strictly to historical or current facts.
Often, they include the words “believe,” “continue,” “expect,” “target,”
“anticipate,” “intend,” “plan,” “estimate,” “potential,” “project,” or words
of similar meaning, or future or conditional verbs such as “will,” “would,”
“should,” “could,” or “may.” They may also consist of annualized amounts based
on historical interim period results. Forward-looking statements in this press
release include the treatment of the subordinated debt as Tier 2 capital and
the BTMU capital contribution as Common Equity Tier 1 capital under the final
U.S. Basel III regulatory capital rules. There are numerous risks and
uncertainties that could and will cause actual results to differ materially
from those discussed in the Company’s forward-looking statements. Many of
these factors are beyond the Company’s ability to control or predict and could
have a material adverse effect on the Company’s financial condition, and
results of operations or prospects. For more information about factors that
could cause actual results to differ materially from our expectations, refer
to our reports filed with the Securities and Exchange Commission (SEC),
including the discussions under “Management’s Discussion & Analysis of
Financial Condition and Results of Operations” and “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2012, as filed with
the SEC and available on the SEC’s website at www.sec.gov. Any factor
described above or in our SEC reports could, by itself or together with one or
more other factors, adversely affect our financial results and condition. All
forward-looking statements included in this press release are based on
information available at the time of the release, and the Company assumes no
obligation to update any forward-looking statement.

Headquartered in San Francisco, UnionBanCal Corporation is a financial holding
company with assets of $105.9 billion at December 31, 2013. Its primary
subsidiary, Union Bank, N.A., provides an array of financial services to
individuals, small businesses, middle-market companies, and major
corporations. The bank operated 420 branches in California, Washington,
Oregon, Texas, Illinois, New York and Georgia, as well as 2 international
offices, on December 31, 2013. 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, 2013 from
                        December      September     June 30,      March 31,    December       September   December
                        31,             30,                                            31,            30,           31,
(Dollars in             2013            2013            2013^(1)        2013^(1)       2012^(1)       2013          2012
millions)
Results of
operations:
Net interest income     $ 706           $ 685           $ 672           $ 653          $ 660          3     %       7     %
Noninterest income       190           234           201           251          229         (19   )       (17   )
Total revenue             896             919             873             904            889          (3    )       1
Noninterest expense      689           689           702           713          715         -             (4    )
Pre-tax,
pre-provision             207             230             171             191            174          (10   )       19
income^(2)
(Reversal of)
provision for loan       (23     )      (16     )      (3      )      (3     )      (5     )     (44   )       (360  )
losses
Income before
income taxes and
including                 230             246             174             194            179          (7    )       28
noncontrolling
interests
Income tax expense       55            55            35            50           60          -             (8    )
Net income
including                 175             191             139             144            119          (8    )       47
noncontrolling
interests
Deduct: Net loss
from noncontrolling      4             7             3             4            4           (43   )       -
interests
Net income
attributable to         $ 179          $ 198          $ 142          $ 148         $ 123         (10   )       46
UnionBanCal
Corporation (UNBC)
                                                                                                                    
Balance sheet (end
of period):
Total assets            $ 105,894       $ 105,484       $ 102,279       $ 96,975       $ 97,008       -             9
Total securities          22,326          22,318          24,415          22,816         22,455       -             (1    )
Total loans held          68,312          67,170          65,843          60,882         60,034       2             14
for investment
Core deposits^(3)         69,155          68,334          65,533          63,585         63,769       1             8
Total deposits            80,101          79,415          77,356          74,038         74,304       1             8
Long-term debt            6,547           7,803           6,058           5,314          5,622        (16   )       16
UNBC stockholder's        14,215          12,549          12,371          12,565         12,461       13            14
equity
                                                                                                                    
Balance sheet
(period average):
Total assets            $ 104,424       $ 101,534       $ 98,714        $ 96,649       $ 92,051       3             13
Total securities          22,282          22,909          23,183          21,824         21,903       (3    )       2
Total loans held          67,619          66,608          63,673          60,553         57,242       2             18
for investment
Earning assets            94,707          92,035          89,292          87,055         82,776       3             14
Total deposits            79,747          77,434          75,350          74,256         69,601       3             15
UNBC stockholder's        12,604          12,210          12,599          12,584         12,559       3             -
equity
                                                                                                                    
Performance ratios:
Return on average         0.68    %       0.78    %       0.58    %       0.61   %       0.54   %
assets^(4)
Return on average
UNBC stockholder's        5.66            6.50            4.53            4.68           3.95
equity^(4)
Return on average
assets excluding
the impact of
privatization             0.75            0.81            0.66            0.72           0.68
transaction and
merger costs
related to
acquisitions^(4)(5)
Return on average
UNBC stockholder's
equity excluding
the impact of
privatization             7.41            8.01            6.17            6.69           5.95
transaction and
merger costs
related to
acquisitions^(4)(5)
Efficiency                76.89           75.01           80.37           78.84          80.37
ratio^(6)
Adjusted efficiency       67.08           67.21           69.45           67.72          70.22
ratio^(7)
Net interest              2.99            2.99            3.03            3.04           3.21
margin^(4)(8)
                                                                                                                    
Capital ratios:
Tier 1 risk-based
capital                   12.44   %       11.17   %       11.55   %       12.54  %       12.44  %
ratio^(9)(10)
Total risk-based
capital                   14.64           13.11           13.63           14.02          13.93
ratio^(9)(10)
Leverage ratio^(10)       11.28           10.22           10.36           10.70          11.18
Tier 1 common
capital                   12.37           11.10           11.47           12.45          12.35
ratio^(9)(10)(11)
Tangible common           10.54           9.01            9.08            10.02          9.89
equity ratio^(12)

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, 2013
                                                                     from
                               December 31,      December 31,       December
                                                                     31,
(Dollars in millions)          2013               2012^(1)           2012
Results of operations:
Net interest income            $  2,716           $  2,602           4      %
Noninterest income               876              818            7
Total revenue                     3,592              3,420           5
Noninterest expense              2,793            2,566          9
Pre-tax, pre-provision            799                854             (6     )
income^(2)
(Reversal of) provision          (45     )         25             (280   )
for loan losses
Income before income
taxes and including               844                829             2
noncontrolling interests
Income tax expense               195              220            (11    )
Net income including              649                609             7
noncontrolling interests
Deduct: Net loss from            18               19             (5     )
noncontrolling interests
Net income attributable        $  667            $  628            6
to UNBC
                                                                     
Balance sheet (end of
period):
Total assets                   $  105,894         $  97,008          9
Total securities                  22,326             22,455          (1     )
Total loans held for              68,312             60,034          14
investment
Core deposits^(3)                 69,155             63,769          8
Total deposits                    80,101             74,304          8
Long-term debt                    6,547              5,622           16
UNBC stockholder's                14,215             12,461          14
equity
                                                                     
Balance sheet (period
average):
Total assets                   $  100,355         $  89,716          12
Total securities                  22,552             23,216          (3     )
Total loans held for              64,638             55,407          17
investment
Earning assets                    90,797             80,761          12
Total deposits                    76,714             65,743          17
UNBC stockholder's                12,499             12,075          4
equity
                                                                     
Performance ratios:
Return on average                 0.66    %         0.70    %     
assets^(4)
Return on average UNBC            5.33               5.21
stockholder's equity^(4)
Return on average assets
excluding the impact of
privatization                     0.74               0.78
transaction and merger
costs related to
acquisitions^(4)(5)
Return on average
stockholders' equity
excluding the impact of
privatization                     7.06               7.01
transaction and merger
costs related to
acquisitions^(4)(5)
Efficiency ratio^(6)              77.74              75.03
Adjusted efficiency               67.85              68.45
ratio^(7)
Net interest                      3.01               3.24
margin^(4)(8)
                                                                     
Capital ratios:
Tier 1 risk-based                 12.44   %         12.44   %     
capital ratio^(9)(10)
Total risk-based capital          14.64              13.93
ratio^(9)(10)
Leverage ratio^(10)               11.28              11.18
Tier 1 common capital             12.37              12.35
ratio^(9)(10)(11)
Tangible common equity            10.54              9.89
ratio^(12)
                                                                     

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, 2013 from
                    December     September    June 30,      March 31,    December       September   December
                    31,            30,                                           31,            30,           31,
(Dollars in         2013           2013           2013            2013           2012           2013          2012
millions)
                                                                                                                    
Credit Data:
(Reversal of)
provision for
loan losses,        $ (22    )     $ (16    )     $ (3     )      $ (3     )     $ (3     )     (38   )%      nm    %
excluding FDIC
covered loans
(Reversal of)
provision for
FDIC covered          (1     )       -              -               -              (2     )     nm            50
loan losses not
subject to FDIC
indemnification
(Reversal of)
provision for
losses on            2            1            (2     )       15           (10    )     100           120
off-balance
sheet
commitments
Total (reversal
of) provision       $ (21    )     $ (15    )     $ (5     )      $ 12          $ (15    )     (40   )       (40   )
for credit
losses
Net loans
charged off         $ 11           $ (1     )     $ 8             $ 14           $ 5            nm            120
(recovered)
Nonperforming         499            574            589             607            616          (13   )       (19   )
assets
Criticized
loans held for        1,274          1,270          1,362           1,545          1,277        -             -
investment^(13)
                                                                                                                    
Credit Ratios:      
Allowance for
loan losses to:
Total loans
held for              0.83   %       0.91   %       0.95   %        1.05   %       1.09   %
investment
Nonaccrual            128.42         119.04         120.11          122.62         129.47
loans
Allowance for
credit losses
to^(14):
Total loans
held for              1.02           1.10           1.16            1.27           1.28
investment
Nonaccrual            158.30         144.63         146.34          149.24         152.67
loans
Net loans
charged off to
average total         0.07           (0.01  )       0.05            0.10           0.03
loans held for
investment^(4)
Nonperforming
assets to total
loans held for
investment and        0.74           0.85           0.89            1.00           1.02
Other Real
Estate Owned
(OREO)
Nonperforming
assets to total       0.48           0.54           0.58            0.63           0.63
assets
Nonaccrual
loans to total        0.65           0.76           0.79            0.85           0.84
loans held for
investment
                                                                                                                    
Excluding
purchased
credit-impaired     
loans and FDIC
covered
OREO^(15):
Allowance for
loan losses to:
Total loans
held for              0.84   %       0.92   %       0.97   %        1.06   %       1.11   %
investment
Nonaccrual            132.82         123.53         125.69          129.56         137.40
loans
Allowance for
credit losses
to^(14):
Total loans
held for              1.04           1.12           1.18            1.30           1.31
investment
Nonaccrual            163.78         150.14         153.18          157.75         162.05
loans
Net loans
charged off to
average total         0.11           0.01           0.06            0.08           0.01
loans held for
investment^(4)
Nonperforming
assets to total
loans held for        0.66           0.78           0.81            0.87           0.88
investment and
OREO
Nonperforming
assets to total       0.43           0.49           0.52            0.54           0.54
assets
Nonaccrual
loans to total        0.63           0.75           0.77            0.82           0.81
loans held for
investment
                                                                                                                    
                    
                   As of and for the                                          
                    Year Ended
                                                  Percent
                    December       December       Change
                    31,            31,            to December
                                                  31, 2013
(Dollars in                                       from
millions)           2013           2012           December                                                    
                                                  31, 2012
                                                                                                                    
Credit Data:
(Reversal of)
provision for
loan losses,        $ (44    )     $ 28             (257   )%     
excluding FDIC
covered loans
(Reversal of)
provision for
FDIC covered          (1     )       (3     )       67
loan losses not
subject to FDIC
indemnification
(Reversal of)
provision for
losses on            16           (17    )       194
off-balance
sheet
commitments
Total (reversal
of) provision       $ (29    )     $ 8             (463   )
for credit
losses
Net loans
charged off         $ 32           $ 131            (76    )
(recovered)
Nonperforming         499            616            (19    )
assets
                                                                                                                    
Credit Ratios:
Net loans
charged off to
average total         0.05   %       0.24   %     
loans held for
investment^(4)
Nonperforming
assets to total       0.48           0.63
assets
                                                                                                                    
Excluding
purchased
credit-impaired
loans and FDIC
covered
OREO^(15):
Net loans
charged off to
average total         0.06   %       0.23   %     
loans held for
investment^(4)
Nonperforming
assets to total       0.43           0.54
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 30,   March      December
                   31,         30,                        31,          31,
(Dollars in        2013       2013          2013^(1)     2013^(1)     2012^(1)
millions)
Interest
Income
Loans              $  695      $  668        $  649       $  629       $  629
Securities            115         118           118          118          122
Other                6         2           2          3          3   
Total interest       816       788         769        750        754 
income
                                                                       
Interest
Expense
Deposits              64          63            61           60           57
Commercial
paper and
other                 1           2             1            1            1
short-term
borrowings
Long-term debt       45        38          35         36         36  
Total interest       110       103         97         97         94  
expense
                                                                       
Net Interest          706         685           672          653          660
Income
(Reversal of)
provision for        (23 )      (16  )       (3  )       (3  )       (5  )
loan losses
Net interest
income after
(reversal of)        729       701         675        656        665 
provision for
loan losses
                                                                       
Noninterest
Income
Service
charges on            51          53            52           53           51
deposit
accounts
Trust and
investment            28          34            38           35           33
management
fees
Trading
account               20          15            21           5            30
activities
Securities            8           47            27           96           20
gains, net
Credit                28          31            26           26           27
facility fees
Merchant              25          29            23           16           23
banking fees
Brokerage
commissions           12          12            11           11           11
and fees
Card
processing            8           8             9            9            8
fees, net
Other, net           10        5           (6  )       -          26  
Total
noninterest          190       234         201        251        229 
income
                                                                       
Noninterest
Expense
Salaries and
employee              406         391           413          421          408
benefits
Net occupancy         70          77            84           75           70
and equipment
Professional
and outside           64          66            62           58           81
services
Intangible
asset                 16          16            17           16           19
amortization
Regulatory            14          20            20           20           17
assessments
(Reversal of)
provision for
losses on             2           1             (2  )        15           (10 )
off-balance
sheet
commitments
Other                117       118         108        108        130 
Total
noninterest          689       689         702        713        715 
expense
                                                                       
Income before
income taxes
and including         230         246           174          194          179
noncontrolling
interests
Income tax           55        55          35         50         60  
expense
Net Income
including             175         191           139          144          119
Noncontrolling
Interests
Deduct: Net
loss from            4         7           3          4          4   
noncontrolling
interests
Net Income
attributable       $  179     $  198       $  142      $  148      $  123 
to UNBC
                                           

Refer to Exhibit 14 for footnote explanations.



UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 5

                                         For the Years Ended
                                             December 31,     December 31,
(Dollars in millions)                        2013                 2012^(1)
Interest Income
Loans                                        $  2,641             $  2,439
Securities                                      469                  527
Other                                          13                 6      
Total interest income                          3,123              2,972  
                                                                  
Interest Expense
Deposits                                        248                  214
Commercial paper and other                      5                    9
short-term borrowings
Long-term debt                                 154                147    
Total interest expense                         407                370    
                                                                  
Net Interest Income                             2,716                2,602
(Reversal of) provision for loan               (45    )            25     
losses
Net interest income after (reversal            2,761              2,577  
of) provision for loan losses
                                                                  
Noninterest Income
Service charges on deposit accounts             209                  209
Trust and investment management fees            135                  119
Trading account activities                      61                   101
Securities gains, net                           178                  108
Credit facility fees                            111                  105
Merchant banking fees                           93                   89
Brokerage commissions and fees                  46                   39
Card processing fees, net                       34                   32
Other, net                                     9                  16     
Total noninterest income                       876                818    
                                                                  
Noninterest Expense
Salaries and employee benefits                  1,631                1,479
Net occupancy and equipment                     306                  267
Professional and outside services               250                  228
Intangible asset amortization                   65                   81
Regulatory assessments                          74                   65
(Reversal of) provision for losses              16                   (17    )
on off-balance sheet commitments
Other                                          451                463    
Total noninterest expense                      2,793              2,566  
                                                                  
Income before income taxes and                  844                  829
including noncontrolling interests
Income tax expense                              195                  220
                                                                 
Net Income including Noncontrolling             649                  609
Interests
Deduct: Net loss from noncontrolling           18                 19     
interests
                                                                            
Net Income attributable to UNBC              $  667              $  628    

Refer to Exhibit 14 for footnote explanations.



UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
Exhibit 6
                                                                       
                   December        September       June 30,        March 31,      December
                   31,             30,                                            31,
(Dollars in
millions           2013            2013            2013^(1)        2013^(1)       2012^(1)
except for per
share amount)
Assets
Cash and due       $ 1,863         $ 1,719         $ 1,405         $ 1,265        $ 1,845
from banks
Interest
bearing              4,329           5,471           1,899           3,776          3,477
deposits in
banks
Federal funds
sold and
securities          11            122           50            50           169    
purchased
under resale
agreements
Total cash and
cash                 6,203           7,312           3,354           5,091          5,491
equivalents
Trading
account assets
(includes $8
at December
31, 2013; $13
at September
30, 2013; $4
at June 30,          851             776             844             1,119          1,208
2013; $40 at
March 31,
2013; and $1
at December
31, 2012 of
assets pledged
as collateral)
Securities
available for        15,817          16,872          23,510          21,801         21,352
sale
Securities
held to
maturity (Fair
value:
December 31,
2013, $6,439;
September 30,        6,509           5,446           905             1,015          1,103
2013, $5,450;
June 30, 2013,
$891; March
31, 2012,
$1,036; and
December 31,
2012, $1,135)
Loans held for       68,312          67,170          65,843          60,882         60,034
investment
Allowance for       (568    )      (608    )      (625    )      (638   )      (653   )
loan losses
Loans held for
investment,          67,744          66,562          65,218          60,244         59,381
net
Premises and         688             685             699             707            710
equipment, net
Intangible           290             288             322             339            376
assets, net
Goodwill             3,228           3,168           3,186           2,952          2,942
Other assets        4,564         4,375         4,241         3,707        4,445  
Total assets       $ 105,894      $ 105,484      $ 102,279      $ 96,975      $ 97,008 
                                                                                  
Liabilities
Deposits:
Noninterest        $ 26,495        $ 26,126        $ 25,655        $ 24,679       $ 25,478
bearing
Interest            53,606        53,289        51,701        49,359       48,826 
bearing
Total deposits       80,101          79,415          77,356          74,038         74,304
Commercial
paper and
other                2,563           3,078           3,792           2,228          1,363
short-term
borrowings
Long-term debt       6,547           7,803           6,058           5,314          5,622
Trading
account              540             614             566             742            895
liabilities
Other               1,675         1,767         1,866         1,818        2,099  
liabilities
Total               91,426        92,677        89,638        84,140       84,283 
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, 2013,
September 30,
2013, June 30,
2013, March
31, 2013, and
December 31,
2012
Additional
paid-in              7,191           5,985           5,979           5,997          5,994
capital
Retained             7,512           7,333           7,135           6,993          6,845
earnings
Accumulated
other               (624    )      (905    )      (879    )      (561   )      (514   )
comprehensive
loss
Total UNBC
stockholder's        14,215          12,549          12,371          12,565         12,461
equity
Noncontrolling      253           258           270           270          264    
interests
Total equity        14,468        12,807        12,641        12,835       12,725 
Total
liabilities        $ 105,894      $ 105,484      $ 102,279      $ 96,975      $ 97,008 
and equity

Refer to Exhibit 14 for footnote explanations.



UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 7

                      For the Three Months Ended
                        December 31, 2013                             September 30, 2013
                                      Interest      Average                       Interest      Average
                        Average         Income/         Yield/          Average         Income/         Yield/
(Dollars in             Balance         Expense^(8)     Rate^(4)(8)     Balance         Expense^(8)     Rate^(4)(8)
millions)
Assets
Loans held for
investment:^(16)
Commercial and          $ 23,176        $     196       3.35     %      $ 22,930        $     192       3.32     %
industrial
Commercial mortgage       12,984              123       3.78              12,936              117       3.62
Construction              868                 7         3.46              827                 7         3.30
Lease financing           981                 8         3.43              973                 12        4.92
Residential               25,143              231       3.67              24,157              225       3.72
mortgage
Home equity and
other consumer           3,305             35        4.13             3,384             33        3.87
loans
Loans, before
purchased                 66,457              600       3.60              65,207              586       3.58
credit-impaired
loans
Purchased
credit-impaired          1,162             96        32.75            1,401             82        23.46
loans
Total loans held          67,619              696       4.10              66,608              668       4.00
for investment
Securities                22,282              118       2.12              22,909              122       2.12
Interest bearing          4,242               3         0.26              2,050               1         0.25
deposits in banks
Federal funds sold
and securities            138                 -         0.09              101                 -         0.13
purchased under
resale agreements
Trading account           203                 2         4.36              134                 1         0.43
assets
Other earning            223               1         1.89             233               -         0.97
assets
Total earning             94,707             820       3.45              92,035             792       3.43
assets
Allowance for loan        (618    )                                       (633    )
losses
Cash and due from         1,553                                           1,315
banks
Premises and              678                                             694
equipment, net
Other assets             8,104                                         8,123   
Total assets            $ 104,424                                      $ 101,534 
Liabilities
Interest bearing
deposits:
Transaction and
money market            $ 36,636              35        0.38            $ 34,912              31        0.36
accounts
Savings                   5,576               1         0.13              5,633               2         0.13
Time                     11,431            28        0.96             12,017            30        0.98
Total interest           53,643            64        0.48             52,562            63        0.47
bearing deposits
Commercial paper
and other                 2,562               1         0.22              3,376               2         0.20
short-term
borrowings^(17)
Long-term debt           7,094             45        2.52             6,135             38        2.47
Total borrowed           9,656             46        1.91             9,511             40        1.66
funds
Total interest            63,299             110       0.69              62,073             103       0.66
bearing liabilities
Noninterest bearing       26,104                                          24,872
deposits
Other liabilities        2,160                                         2,110   
Total liabilities         91,563                                          89,055
Equity
UNBC Stockholder's        12,604                                          12,210
equity
Noncontrolling           257                                           269     
interests
Total equity             12,861                                        12,479  
Total liabilities       $ 104,424                                      $ 101,534 
and equity
                                                                                                        
Net interest
income/spread
(taxable-equivalent                           710       2.76     %                            689       2.77     %
basis)
Impact of
noninterest bearing                                     0.20                                            0.19
deposits
Impact of other
noninterest bearing                                     0.03                                            0.03
sources
Net interest margin                                     2.99                                            2.99
Less:
taxable-equivalent                           4                                              4
adjustment
Net interest income                     $     706                                       $     685
                                                                                                        

Refer to Exhibit 14 for footnote explanations.



UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 8

                      For the Three Months Ended
                        December 31, 2013                             December 31, 2012
                                      Interest      Average                      Interest         Average
                        Average         Income/         Yield/          Average        Income/            Yield/
(Dollars in             Balance         Expense^(8)     Rate^(4)(8)     Balance        Expense^(1)(8)     Rate^(1)(4)(8)
millions)
Assets
Loans held for
investment:^(16)
Commercial and          $ 23,176        $     196       3.35     %      $ 20,585       $      182         3.53      %
industrial
Commercial mortgage       12,984              123       3.78              8,814               91          4.12
Construction              868                 7         3.46              687                 8           4.24
Lease financing           981                 8         3.43              987                 11          4.50
Residential               25,143              231       3.67              21,914              220         4.01
mortgage
Home equity and
other consumer           3,305             35        4.13             3,527             33          3.79
loans
Loans, before
purchased                 66,457              600       3.60              56,514              545         3.85
credit-impaired
loans
Purchased
credit-impaired          1,162             96        32.75            728               85          46.39
loans
Total loans held          67,619              696       4.10              57,242              630         4.39
for investment
Securities                22,282              118       2.12              21,903              125         2.28
Interest bearing          4,242               3         0.26              3,250               2           0.26
deposits in banks
Federal funds sold
and securities            138                 -         0.09              79                  -           0.20
purchased under
resale agreements
Trading account           203                 2         4.36              140                 -           0.35
assets
Other earning            223               1         1.89             162               -           0.49
assets
Total earning             94,707             820       3.45              82,776             757         3.65
assets
Allowance for loan        (618    )                                       (673   )
losses
Cash and due from         1,553                                           1,375
banks
Premises and              678                                             663
equipment, net
Other assets             8,104                                         7,910  
Total assets            $ 104,424                                      $ 92,051 
Liabilities
Interest bearing
deposits:
Transaction and
money market            $ 36,636              35        0.38            $ 28,988              18          0.25
accounts
Savings                   5,576               1         0.13              5,436               2           0.14
Time                     11,431            28        0.96             11,571            37          1.25
Total interest           53,643            64        0.48             45,995            57          0.49
bearing deposits
Commercial paper
and other                 2,562               1         0.22              1,482               1           0.28
short-term
borrowings^(17)
Long-term debt           7,094             45        2.52             5,562             36          2.61
Total borrowed           9,656             46        1.91             7,044             37          2.12
funds
Total interest            63,299             110       0.69              53,039             94          0.70
bearing liabilities
Noninterest bearing       26,104                                          23,606
deposits
Other liabilities        2,160                                         2,588  
Total liabilities         91,563                                          79,233
Equity
UNBC Stockholder's        12,604                                          12,559
equity
Noncontrolling           257                                           259    
interests
Total equity             12,861                                        12,818 
Total liabilities       $ 104,424                                      $ 92,051 
and equity
                                                                                                          
Net interest
income/spread
(taxable-equivalent                           710       2.76     %                            663         2.95      %
basis)
Impact of
noninterest bearing                                     0.20                                              0.22
deposits
Impact of other
noninterest bearing                                     0.03                                              0.04
sources
Net interest margin                                     2.99                                              3.21
Less:
taxable-equivalent                           4                                              3
adjustment
Net interest income                     $     706                                      $      660

Refer to Exhibit 14 for footnote explanations.



<td class="bwpadl0 bwnowrap bwpadr0 b*Story too large*
UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 9

                      December 31, 2013                             December 31, 2012
                                      Interest      Average                      Interest         Average
                        Average         Income/         Yield/          Average        Income/            Yield/
(Dollars in             Balance         Expense^(8)     Rate^(4)(8)     Balance        Expense^(1)(8)     Rate^(1)(4)(8)
millions)
Assets
Loans held for
investment:^(16)
Commercial and          $ 22,294        $    750        3.36     %      $ 20,196       $     718          3.55      %
industrial
Commercial mortgage       11,928             453        3.80              8,357              338          4.05
Construction              787                29         3.74              712                30           4.15
Lease financing           1,018              36         3.57              1,001              43           4.30
Residential               23,903             898        3.76              20,778             874          4.21
mortgage
Home equity and
other consumer           3,447            135        3.92             3,602            138          3.83
loans
Loans, before
purchased                 63,377             2,301      3.63              54,646             2,141        3.92
credit-impaired
loans
Purchased
credit-impaired          1,261            341        27.03            761              304          39.92
loans
Total loans held          64,638             2,642      4.09              55,407             2,445        4.41
for investment
Securities                22,552             483        2.14              23,216             534          2.30
Interest bearing          3,067              8          0.25              1,756              4            0.26
deposits in banks
Federal funds sold
and securities            133                -          0.15              67                 -            0.21
purchased under
resale agreements
Trading account           163                3          1.62              173                1            0.52
assets
Other earning            244              2          0.91             142              -            0.25
assets
Total earning             90,797            3,138      3.46              80,761            2,984        3.70
assets
Allowance for loan        (636    )                                       (701   )
losses
Cash and due from         1,405                                           1,318
banks
Premises and              695                                             660
equipment, net
Other assets             8,094                                         7,678  
Total assets            $ 100,355                                      $ 89,716 
Liabilities
Interest bearing
deposits:
Transaction and
money market            $ 33,904             114        0.34            $ 26,696             61           0.23
accounts
Savings                   5,682              7          0.13              5,312              8            0.15
Time                     12,115           127        1.04             12,368           145          1.17
Total interest           51,701           248        0.48             44,376           214          0.48
bearing deposits
Commercial paper
and other                 2,751              5          0.20              3,256              9            0.27
short-term
borrowings^(17)
Long-term debt           5,998            154        2.56             5,820            147          2.53
Total borrowed           8,749            159        1.82             9,076            156          1.72
funds
Total interest            60,450            407        0.67              53,452            370          0.69
bearing liabilities
Noninterest bearing       25,013                                          21,367
deposits
Other liabilities        2,128                                         2,562  
Total liabilities         87,591                                          77,381
Equity
UNBC Stockholder's        12,499                                          12,075
equity
Noncontrolling           265                                           260    
interests
Total equity             12,764                                        12,335 
Total liabilities       $ 100,355                                      $ 89,716 
and equity
                                                                                                          
Net interest
income/spread
(taxable-equivalent                          2,731      2.79     %                           2,614        3.01      %
basis)
Impact of
noninterest bearing
deposits

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