UnionBanCal Corporation (the Company or UB) today reported first quarter 2010 net income of $77 million, compared with net loss of $10 million a year earlier, and net income of $42 million in fourth quarter 2009. Total provision for credit losses was $165 million in first quarter 2010, compared with $275 million a year earlier, and $195 million in fourth quarter 2009. Net income (loss) included after-tax net expenses due to the privatization transaction of $12 million in first quarter 2010, $21 million in first quarter 2009, and $14 million in fourth quarter 2009. Mitsubishi UFJ Financial Group, Inc. (MUFG), through its wholly-owned subsidiary, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), completed its acquisition of all of the outstanding shares of the Company’s common stock (the “privatization transaction”), on November 4, 2008.

On April 16, 2010, Union Bank, N.A., the Company’s primary subsidiary, acquired certain deposits and assets of San Rafael, California-based Tamalpais Bank in a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC). Tamalpais Bank had seven full-service branches in the following communities in Marin County, California: Corte Madera, Mill Valley, San Anselmo, Tiburon-Belvedere, Greenbrae, Northgate and San Rafael, all of which reopened on April 19, 2010, as Union Bank branches. In the transaction, Union Bank acquired approximately $600 million in total assets, approximately $500 million of which are covered under a loss-share agreement with the FDIC. Union Bank also assumed more than $400 million in deposits.

For first quarter 2010, total revenue (taxable-equivalent net interest income plus noninterest income) was $787 million, up 7 percent compared with first quarter 2009. Net interest income increased 3 percent and noninterest income increased 20 percent.

Net interest income for first quarter 2010 was $577 million, which included $19 million of accretion related to fair value adjustments due to the privatization transaction, compared with net interest income for first quarter 2009 of $563 million, which included $35 million of accretion related to fair value adjustments due to the privatization transaction. Average total loans decreased $3 billion, or 6 percent; average interest bearing deposits increased $19 billion, or 57 percent; and average noninterest bearing deposits increased $2 billion, or 15 percent. The strong growth in average total deposits reflects successful deposit-gathering marketing initiatives in both the retail and commercial lines of business, as well as significant increases in money market account deposits from institutional custody and escrow clients. The liquidity that resulted from the combination of robust average deposit growth and declining average loan balances was invested primarily in lower yielding assets, particularly interest bearing deposits in banks and available for sale securities. This contributed to a decrease in the net interest margin, from 3.79 percent for first quarter 2009, to 2.95 percent for first quarter 2010.

The annualized average all-in cost of funds was 0.62 percent in first quarter 2010, compared with 1.03 percent in first quarter 2009. The Company’s average core deposit-to-loan ratio was 117 percent in first quarter 2010, compared with 79 percent in first quarter 2009.

Compared with fourth quarter 2009, total revenue increased 3 percent, with net interest income down 0.6 percent and noninterest income up 13 percent. Average total loans decreased $1 billion, or 2 percent; average interest bearing deposits increased $3 billion, or 5 percent; and average noninterest bearing deposits decreased $406 million, or 3 percent. The net interest margin decreased 11 basis points compared with fourth quarter 2009.

For first quarter 2010, noninterest income was $210 million, up $35 million, or 20 percent, from the same quarter a year ago. Service charges on deposit accounts decreased $5 million, or 7 percent, primarily due to lower overdraft fees. Securities gains, net, increased $34 million, primarily due to a gain on the sale of securities in first quarter 2010. Other noninterest income increased $7 million, or 39 percent, partially due to lower write-downs on investments recorded in first quarter 2010.

Noninterest income increased $25 million, or 13 percent, compared with fourth quarter 2009. Service charges on deposit accounts decreased $7 million, or 9 percent. Securities gains, net, increased $22 million, primarily due to higher gains on the sale of securities in first quarter 2010. Losses on private capital investments, net, decreased $9 million, primarily due to impairment charges on investments recorded in fourth quarter 2009.

Noninterest expense for first quarter 2010 was $525 million, an increase of $3 million, or 0.6 percent, compared with first quarter 2009. The increase was primarily attributable to a $36 million increase in salaries and employee benefits expense, partially offset by a $31 million decrease in provision for losses on off-balance sheet commitments.

Noninterest expense for first quarter decreased $5 million, or 0.9 percent, compared with fourth quarter 2009. The decline was primarily attributable to decreases of $8 million in intangible asset amortization expense, $9 million in provision for losses on off-balance sheet commitments, and $16 million in miscellaneous expenses. Partially offsetting these decreases was a $19 million, or 7 percent, increase in salaries and employee benefits expense, primarily due to annual seasonal factors that result in higher payroll taxes and 401(k) matching contributions.

At March 31, 2010, the Company had total assets of $85 billion, up $17 billion, or 24 percent, compared with March 31, 2009. Total loans were $47 billion, down $3 billion, or 6 percent, compared with March 31, 2009. Securities available for sale were $22 billion, up $15 billion, as deposit growth far outpaced loan growth.

At March 31, 2010, the Company had total liabilities of $75 billion, up $14 billion, or 23 percent, compared with March 31, 2009. Total deposits were $67 billion, up $18 billion, or 36 percent, compared with March 31, 2009. Core deposits at period-end were $53 billion, up $11 billion, or 27 percent, compared with March 31, 2009. At March 31, 2010, the Company’s core deposit-to-loan ratio was 114 percent.

Nonperforming assets at March 31, 2010, were $1.47 billion, or 1.72 percent of total assets. This compares with $1.35 billion, or 1.58 percent of total assets, at December 31, 2009, and $835 million, or 1.21 percent of total assets, at March 31, 2009. The increase in nonperforming assets compared with March 31, 2009, resulted from weak economic conditions, which drove higher levels of nonaccrual loans in most areas of the loan portfolio. Higher levels of nonaccrual loans in the construction, commercial mortgage, residential mortgage and consumer loan categories were partially offset by lower levels of nonaccrual loans in the commercial, financial and industrial category.

For first quarter 2010, the total provision for credit losses was $165 million, down from $195 million for fourth quarter 2009. Net loans charged-off were $120 million, or 1.03 percent annualized, of average total loans, up from $95 million, or 0.79 percent annualized, of average total loans for fourth quarter 2009. For first quarter 2009, the total provision for credit losses was $275 million and net loans charged-off were $116 million, or 0.95 percent annualized, of average total loans.

For first quarter 2010, net loans charged-off on the commercial, financial and industrial portfolio were $54 million; net loans charged-off on the construction portfolio were $15 million; net loans charged-off on the commercial mortgage portfolio were $32 million; and net loans charged-off on the consumer portfolio were $9 million. Net loans charged-off on the residential mortgage portfolio, which averaged $16.8 billion outstanding for the quarter, were $10 million.

The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In first quarter 2010, the provision for loan losses was $170 million, the reversal of provision for losses on off-balance sheet commitments was $5 million, and the total provision for credit losses was $165 million.

At March 31, 2010, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 3.38 percent and 111 percent, respectively. This compares with 3.25 percent and 116 percent, respectively, at December 31, 2009, and 2.07 percent and 126 percent, respectively, at March 31, 2009.

Total stockholder’s equity was $9.7 billion at March 31, 2010, and tangible common equity was $7.0 billion. The Company’s tangible common equity ratio was 8.47 percent at March 31, 2010, compared with 8.29 percent at December 31, 2009. The Tier 1 common capital ratio at March 31, 2010, was 11.96 percent, compared with 11.80 percent at December 31, 2009. The Company’s Tier 1 and total risk-based capital ratios at March 31, 2010, were 11.98 percent and 14.70 percent, respectively.

This press release contains certain references to financial measures identified as excluding privatization transaction expenses, which are adjustments from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP in that they exclude unusual or non-recurring charges, losses, credits or gains. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Because these items are unusual and substantial costs, management believes that financial presentations excluding the impact of these items provide useful supplemental information which is important to a proper understanding of the Company’s core business results. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.

Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $85 billion at March 31, 2010. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank has 346 banking offices in California, Oregon, Washington and Texas and two international offices. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.

UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 1
										Percent Change to
	As of and for the Three Months Ended									March 31, 2010 from
	March 31,			December 31,			March 31,			March 31,		December 31,
(Dollars in thousands)	2009			2009			2010			2009		2009
Results of operations:
Net interest income ⁽¹⁾	$	562,620		$	580,412		$	576,794		2.52	%	(0.62	%)
Noninterest income		174,716			185,286			209,905		20.14	%	13.29	%
Total revenue		737,336			765,698			786,699		6.69	%	2.74	%
Noninterest expense		521,383			529,245			524,572		0.61	%	(0.88	%)
Provision for loan losses		249,000			191,000			170,000		(31.73	%)	(10.99	%)
Income (loss) before income taxes and noncontrolling interests ⁽¹⁾		(33,047	)		45,453			92,127		nm		nm
Taxable-equivalent adjustment		2,617			2,685			2,441		(6.73	%)	(9.09	%)
Income tax expense (benefit)		(25,856	)		885			15,401		nm		nm
Net income (loss) before noncontrolling interests		(9,808	)		41,883			74,285		nm		77.36	%
Less: Net loss from noncontrolling interests		-			-			(3,059	)	nm		nm
Net income (loss) attributable to UnionBanCal Corporation (UNBC)	$	(9,808	)	$	41,883		$	77,344		nm		84.67	%


Balance sheet (end of period):
Total assets	$	68,725,270		$	85,598,128		$	85,471,296		24.37	%	(0.15	%)
Total loans		49,441,063			47,228,508			46,721,210		(5.50	%)	(1.07	%)
Nonperforming assets		834,738			1,349,793			1,466,937		75.74	%	8.68	%
Total deposits		48,878,733			68,517,653			66,581,593		36.22	%	(2.83	%)
Medium- and long-term debt		5,140,931			4,212,184			4,710,979		(8.36	%)	11.84	%
UNBC stockholder's equity		7,475,472			9,580,333			9,706,081		29.84	%	1.31	%

Balance sheet (period average):
Total assets	$	67,072,499		$	81,964,956		$	84,810,109		26.45	%	3.47	%
Total loans		49,789,046			47,871,715			46,847,523		(5.91	%)	(2.14	%)
Earning assets		59,626,207			75,800,728			78,311,856		31.34	%	3.31	%
Total deposits		46,633,173			65,697,920			67,838,145		45.47	%	3.26	%
UNBC stockholder's equity		7,336,212			9,405,635			9,532,428		29.94	%	1.35	%

Financial ratios:
Return on average assets ⁽²⁾		(0.06	%)		0.20	%		0.37	%
Return on average UNBC stockholder's equity ⁽²⁾		(0.54	%)		1.77	%		3.29	%
Efficiency ratio ⁽³⁾		65.69	%		66.36	%		64.98	%
Net interest margin ⁽¹⁾⁽²⁾		3.79	%		3.06	%		2.95	%
Tangible common equity ratio ⁽⁴⁾		7.12	%		8.29	%		8.47	%
Tier 1 common capital ratio ⁽⁵⁾⁽⁶⁾		8.72	%		11.80	%		11.96	%
Tier 1 risk-based capital ratio ⁽⁶⁾		8.74	%		11.82	%		11.98	%
Total risk-based capital ratio ⁽⁶⁾		11.59	%		14.54	%		14.70	%
Leverage ratio ⁽⁶⁾		8.46	%		9.45	%		9.22	%
Allowance for loan losses to:
Total loans		1.76	%		2.87	%		3.01	%
Nonaccrual loans		107.41	%		103.03	%		99.06	%
Allowances for credit losses to ⁽⁷⁾:
Total loans		2.07	%		3.25	%		3.38	%
Nonaccrual loans		126.10	%		116.42	%		111.11	%
Net loans charged off to average total loans ⁽²⁾		0.95	%		0.79	%		1.03	%
Nonperforming assets to total loans, foreclosed assets and distressed loans held for sale		1.69	%		2.86	%		3.14	%
Nonperforming assets to total assets		1.21	%		1.58	%		1.72	%
Selected financial ratios excluding impact of privatization transaction ⁽¹⁰⁾:
From Net income (loss) attributable to UNBC:
Return on average assets ⁽²⁾		0.07	%		0.28	%		0.44	%
Return on average stockholder's equity ⁽²⁾		0.91	%		3.15	%		5.10	%
Efficiency ratio⁽³⁾		59.08	%		62.29	%		61.51	%

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(Taxable-Equivalent Basis)
Exhibit 2

			For the Three Months Ended
			March 31,			December 31,		March 31,
(Amounts in thousands)			2009			2009		2010
Interest Income ⁽¹⁾
	Loans		$	604,067		$	559,350	$	541,651
	Securities			103,281			144,982		143,659
	Interest bearing deposits in banks			900			4,043		4,055
	Federal funds sold and securities purchased under resale agreements			141			23		119
	Trading account assets			158			434		860
		Total interest income		708,547			708,832		690,344

Interest Expense
	Deposits			105,038			101,703		85,562
	Federal funds purchased and securities sold under repurchase agreements			53			24		37
	Commercial paper			1,592			194		240
	Other borrowed funds			11,477			613		1,202
	Medium- and long-term debt			27,529			25,648		26,241
	Trust notes			238			238		268
		Total interest expense		145,927			128,420		113,550

Net Interest Income ⁽¹⁾				562,620			580,412		576,794
	Provision for loan losses			249,000			191,000		170,000
		Net interest income after provision for loan losses		313,620			389,412		406,794

Noninterest Income
	Service charges on deposit accounts			71,322			72,711		66,140
	Securities gains, net			-			11,759		33,893
	Trust and investment management fees			33,907			32,454		31,420
	Trading account activities			22,692			24,134		21,093
	Merchant banking fees			13,832			16,295		13,676
	Card processing fees, net			7,536			8,293		8,620
	Brokerage commissions and fees			8,307			8,160		8,528
	Other			17,120			11,480		26,535
		Total noninterest income		174,716			185,286		209,905

Noninterest Expense
	Salaries and employee benefits			243,563			261,055		279,586
	Net occupancy			41,921			38,793		43,380
	Intangible asset amortization			40,887			40,101		31,793
	Regulatory agencies			17,938			32,103		29,848
	Outside services			18,834			25,288		22,785
	Professional services			15,938			16,981		16,361
	Equipment			15,413			16,383		15,811
	Software			15,038			17,205		14,728
	Foreclosed asset expense (income)			886			2,315		(198	)
	(Reversal of) provision for losses on off-balance sheet commitments			26,000			4,000		(5,000	)
	Privatization-related expense			26,819			4,981		5,153
	Other			58,146			70,040		70,325
		Total noninterest expense		521,383			529,245		524,572

	Income (loss) before income taxes and noncontrolling interests ⁽¹⁾			(33,047	)		45,453		92,127
	Taxable-equivalent adjustment			2,617			2,685		2,441
	Income tax expense (benefit)			(25,856	)		885		15,401
Net Income (Loss) before Noncontrolling Interests				(9,808	)		41,883		74,285
	Less: Net loss from noncontrolling interests			-			-		(3,059	)

Net Income (Loss) attributable to UNBC			$	(9,808	)	$	41,883	$	77,344

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets
Exhibit 3

				(Unaudited)						(Unaudited)
				March 31,			December 31,			March 31,
(Dollars in thousands)				2009			2009			2010
Assets
		Cash and due from banks		$	1,328,279		$	1,198,258		$	1,110,333
		Interest bearing deposits in banks (includes $9,991 at March 31, 2010 related to consolidated variable interest entities (VIEs))			2,505,861			6,585,029			6,874,338
		Federal funds sold and securities purchased under resale agreements			110,083			442,552			488,520
			Total cash and cash equivalents		3,944,223			8,225,839			8,473,191
Trading account assets:
		Pledged as collateral			8,295			15,168			54,380
		Held in portfolio			1,149,832			710,480			775,915
Securities available for sale:
		Pledged as collateral			43,374			2,500			-
		Held in portfolio			7,506,069			22,556,329			22,164,722
Securities held to maturity (Fair value: March 31, 2009, $959,137; December 31, 2009, $1,457,654; March 31, 2010, $1,500,746)					1,150,342			1,227,718			1,247,561
Loans (net of allowance for loan losses: March 31, 2009, $870,185; December 31, 2009, $1,357,000; March 31, 2010, $1,408,013)					48,570,878			45,871,508			45,313,197
Due from customers on acceptances					15,077			8,514			7,788
Premises and equipment, net					670,376			674,298			671,230
Intangible assets, net					672,568			561,040			529,247
Goodwill					2,369,326			2,369,326			2,369,326
Other assets (includes $297,736 at March 31, 2010 related to consolidated VIEs)					2,624,910			3,375,408			3,864,739
			Total assets	$	68,725,270		$	85,598,128		$	85,471,296

Liabilities
		Noninterest bearing		$	13,543,015		$	14,558,989		$	14,389,261
		Interest bearing			35,335,718			53,958,664			52,192,332
			Total deposits		48,878,733			68,517,653			66,581,593
Federal funds purchased and securities sold under repurchase agreements					320,376			150,453			575,668
Commercial paper					749,381			888,541			799,106
Other borrowed funds					3,861,905			591,934			833,617
Trading account liabilities					965,105			538,894			736,813
Acceptances outstanding					15,077			8,514			7,788
Acceptances outstanding					1,304,423			1,096,095			1,224,440
Other liabilities (includes $1,675 at March 31, 2010 related to consolidated VIEs)					5,140,931			4,212,184			4,710,979
Junior subordinated debt payable to subsidiary grantor trust					13,867			13,527			13,444
			Total liabilities		61,249,798			76,017,795			75,483,448

Equity
UNBC Stockholder's Equity:
	Preferred stock:
		Authorized 5,000,000 shares; no shares issued or outstanding			-			-			-
	Common stock, par value $1 per share:
		Authorized 300,000,000 shares; 136,330,829 shares issued			136,331			136,331			136,331
	Additional paid-in capital				3,195,023			5,195,023			5,195,023
	Retained earnings				4,954,994			4,899,841			4,977,185
	Accumulated other comprehensive loss				(810,876	)		(650,862	)		(602,458	)
			Total UNBC stockholder's equity		7,475,472			9,580,333			9,706,081
	Noncontrolling interests				-			-			281,767
			Total equity		7,475,472			9,580,333			9,987,848
			Total liabilities and equity	$	68,725,270		$	85,598,128		$	85,471,296

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Loans and Allowance for Credit Losses (Unaudited)
Exhibit 4

														Percent Change to
					Three Months Ended									March 31, 2010 from
					March 31,			December 31,			March 31,			March 31,		December 31,
(Dollars in millions)					2009			2009			2010			2009		2009

Loans (period average)
	Commercial, financial and industrial				$	18,498		$	15,761		$	14,955		(19.15	%)	(5.11	%)
	Construction					2,734			2,591			2,309		(15.54	%)	(10.88	%)
	Mortgage - Commercial					8,253			8,268			8,234		(0.23	%)	(0.41	%)
	Mortgage - Residential					15,919			16,670			16,781		5.41	%	0.67	%
	Consumer					3,722			3,912			3,916		5.21	%	0.10	%
	Lease financing					653			664			649		(0.61	%)	(2.26	%)

		Total loans held for investment				49,779			47,866			46,844		(5.90	%)	(2.14	%)
		Total loans held for sale				10			6			4		(60.00	%)	(33.33	%)

			Total loans		$	49,789		$	47,872		$	46,848		(5.91	%)	(2.14	%)

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial, financial and industrial			$	347		$	336		$	251		(27.67	%)	(25.30	%)
		Construction				218			335			412		88.99	%	22.99	%
		Mortgage - Commercial				125			414			501		nm		21.01	%
		Mortgage - Residential				102			194			217		nm		11.86	%
		Consumer				18			21			24		33.33	%	14.29	%
		Restructured - nonaccrual				-			17			16		nm		(5.88	%)

				Total nonaccrual loans		810			1,317			1,421		75.43	%	7.90	%

	Restructured loans - nonperforming					3			-			-		(100.00	%)	-
	Foreclosed assets					22			33			45		nm		36.36	%

				Total nonperforming assets	$	835		$	1,350		$	1,466		75.57	%	8.59	%
	Loans 90 days or more past due and still accruing				$	24		$	5		$	15		(37.50	%)	nm
	Restructured loans that are still accruing				$	-		$	4		$	7		nm		75.00	%

Analysis of Allowances for Credit Losses
	Beginning balance				$	738		$	1,261		$	1,357

	Provision for loan losses					249			191			170

	Loans charged off:
		Commercial, financial and industrial				(96	)		(46	)		(67	)
		Construction				(2	)		(31	)		(17	)
		Mortgage - Commercial				(4	)		(19	)		(32	)
		Mortgage - Residential				(6	)		(11	)		(10	)
		Consumer				(10	)		(10	)		(10	)
			Total loans charged off			(118	)		(117	)		(136	)

	Loans recovered:
		Commercial, financial and industrial				1			21			13
		Construction				1			1			2
		Consumer				-			-			1
			Total loans recovered			2			22			16
				Net loans recovered (charged off)		(116	)		(95	)		(120	)

	Adjustment for impaired loans related to privatization					(1	)		-			-
	Foreign translation adjustment					-			-			1
	Ending balance of allowance for loan losses					870			1,357			1,408
	Allowance for off-balance sheet commitment losses					151			176			171

	Allowances for credit losses				$	1,021		$	1,533		$	1,579

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 5

			For the Three Months Ended
			March 31, 2009							March 31, 2010
						Interest		Average					Interest		Average
			Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in thousands)			Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets
Loans: ⁽⁸⁾
	Commercial, financial and industrial		$	18,503,965		$	193,787	4.25	%	$	14,954,956		$	161,889	4.39	%
	Construction			2,733,630			19,261	2.86			2,308,856			16,890	2.97
	Residential mortgage			15,923,191			234,438	5.89			16,784,420			227,489	5.42
	Commercial mortgage			8,253,324			102,389	4.96			8,234,255			86,393	4.20
	Consumer			3,722,252			46,539	5.07			3,915,724			42,809	4.43
	Lease financing			652,684			7,653	4.69			649,312			6,181	3.81
		Total loans		49,789,046			604,067	4.88			46,847,523			541,651	4.65
Securities - taxable				8,319,754			102,256	4.92			23,504,338			142,774	2.43
Securities - tax-exempt				50,417			1,025	8.13			42,327			885	8.37
Interest bearing deposits in banks				4,220			900	0.48			6,596,843			4,055	0.25
Federal funds sold and securities purchased under resale agreements				196,567			141	0.29			461,098			119	0.10
Trading account assets				1,266,203			158	0.05			859,727			860	0.41
		Total earning assets		59,626,207			708,547	4.78			78,311,856			690,344	3.54
Allowance for loan losses				(708,736	)						(1,407,252	)
Cash and due from banks				2,142,198							1,205,261
Premises and equipment, net				674,021							673,907
Other assets				5,338,809							6,026,337
		Total assets	$	67,072,499						$	84,810,109
Liabilities
Deposits:
	Transaction accounts		$	22,497,062			61,097	1.10		$	39,861,094			63,079	0.64
	Savings and consumer time			4,367,945			15,939	1.48			5,971,776			11,945	0.81
	Large time			7,232,767			28,002	1.57			7,621,415			10,538	0.56
		Total interest bearing deposits		34,097,774			105,038	1.25			53,454,285			85,562	0.65
Federal funds purchased and securities sold under repurchase agreements				251,946			53	0.09			205,765			37	0.07
Commercial paper				721,416			1,592	0.89			576,429			240	0.17
Other borrowed funds ⁽⁹⁾				5,083,086			11,477	0.92			713,687			1,202	0.68
Medium- and long-term debt				4,743,352			27,529	2.35			4,560,180			26,241	2.33
Trust notes				13,922			238	6.84			13,475			268	7.95
		Total borrowed funds		10,813,722			40,889	1.53			6,069,536			27,988	1.87
		Total interest bearing liabilities		44,911,496			145,927	1.32			59,523,821			113,550	0.77
Noninterest bearing deposits				12,535,399							14,383,860
Other liabilities				2,289,392							1,276,119
		Total liabilities		59,736,287							75,183,800
Equity
UNBC Stockholder's equity				7,336,212							9,532,428
Noncontrolling interests				-							93,881
		Total equity		7,336,212							9,626,309
		Total liabilities and equity	$	67,072,499						$	84,810,109
Reported Net Interest Income/Margin
Net interest income/margin (taxable-equivalent basis)							562,620	3.79	%					576,794	2.95	%
Less: taxable-equivalent adjustment							2,617							2,441
		Net interest income				$	560,003						$	574,353

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 6

			For the Three Months Ended
			December 31, 2009							March 31, 2010
						Interest		Average					Interest		Average
			Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in thousands)			Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets
Loans: ⁽⁸⁾
	Commercial, financial and industrial		$	15,761,679		$	175,967	4.43	%	$	14,954,956		$	161,889	4.39	%
	Construction			2,591,025			19,556	2.99			2,308,856			16,890	2.97
	Residential mortgage			16,675,231			229,979	5.52			16,784,420			227,489	5.42
	Commercial mortgage			8,268,335			87,166	4.22			8,234,255			86,393	4.20
	Consumer			3,911,899			44,100	4.47			3,915,724			42,809	4.43
	Lease financing			663,546			2,582	1.56			649,312			6,181	3.81
		Total loans		47,871,715			559,350	4.66			46,847,523			541,651	4.65
Securities - taxable				20,186,074			143,992	2.85			23,504,338			142,774	2.43
Securities - tax-exempt				44,780			990	8.85			42,327			885	8.37
Interest bearing deposits in banks				6,662,211			4,043	0.24			6,596,843			4,055	0.25
Federal funds sold and securities purchased under resale agreements				144,599			23	0.06			461,098			119	0.10
Trading account assets				891,349			434	0.19			859,727			860	0.41
		Total earning assets		75,800,728			708,832	3.73			78,311,856			690,344	3.54
Allowance for loan losses				(1,237,014	)						(1,407,252	)
Cash and due from banks				1,257,857							1,205,261
Premises and equipment, net				673,721							673,907
Other assets				5,469,664							6,026,337
		Total assets	$	81,964,956						$	84,810,109
Liabilities
Deposits:
	Transaction accounts		$	37,759,339			74,193	0.78		$	39,861,094			63,079	0.64
	Savings and consumer time			5,280,596			14,422	1.08			5,971,776			11,945	0.81
	Large time			7,867,984			13,088	0.66			7,621,415			10,538	0.56
		Total interest bearing deposits		50,907,919			101,703	0.79			53,454,285			85,562	0.65
Federal funds purchased and securities sold under repurchase agreements				137,133			24	0.07			205,765			37	0.07
Commercial paper				386,067			194	0.20			576,429			240	0.17
Other borrowed funds ⁽⁹⁾				313,747			613	0.78			713,687			1,202	0.68
Medium- and long-term debt				4,481,900			25,648	2.27			4,560,180			26,241	2.33
Trust notes				13,582			238	7.02			13,475			268	7.95
		Total borrowed funds		5,332,429			26,717	1.99			6,069,536			27,988	1.87
		Total interest bearing liabilities		56,240,348			128,420	0.91			59,523,821			113,550	0.77
Noninterest bearing deposits				14,790,001							14,383,860
Other liabilities				1,528,972							1,276,119
		Total liabilities		72,559,321							75,183,800
Equity
UNBC Stockholder's equity				9,405,635							9,532,428
Noncontrolling interests				-							93,881
		Total equity		9,405,635							9,626,309
		Total liabilities and equity	$	81,964,956						$	84,810,109
Reported Net Interest Income/Margin
Net interest income/margin (taxable-equivalent basis)							580,412	3.06	%					576,794	2.95	%
Less: taxable-equivalent adjustment							2,685							2,441
		Net interest income				$	577,727						$	574,353

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Noninterest income (Unaudited)
Exhibit 7

											Percentage Change to
		For the Three Months Ended									March 31, 2010 from
		March 31,			December 31,			March 31,			March 31,			December 31,
(Dollars in thousands)		2009			2009			2010			2009			2009
Service charges on deposit accounts		$	71,322		$	72,711		$	66,140		(7.27	)	%	(9.04	)	%
Securities gains, net			-			11,759			33,893		nm			nm
Trust and investment management fees			33,907			32,454			31,420		(7.33	)		(3.19	)
Trading account activities			22,692			24,134			21,093		(7.05	)		(12.60	)
Merchant banking fees			13,832			16,295			13,676		(1.13	)		(16.07	)
Card processing fees, net			7,536			8,293			8,620		14.38			3.94
Brokerage commissions and fees			8,307			8,160			8,528		2.66			4.51
Losses on private capital investments, net			(2,121	)		(9,519	)		(192	)	(90.95	)		(97.98	)
Other			19,241			20,999			26,727		38.91			27.28
	Total noninterest income	$	174,716		$	185,286		$	209,905		20.14		%	13.29		%


Noninterest expense (Unaudited)

											Percentage Change to
		For the Three Months Ended									March 31, 2010 from
		March 31,			December 31,			March 31,			March 31,			December 31,
(Dollars in thousands)		2009			2009			2010			2009			2009
Salaries and other compensation		$	188,223		$	220,789		$	224,400		19.22		%	1.64		%
Employee benefits			55,340			40,266			55,186		(0.28	)		37.05
	Salaries and employee benefits		243,563			261,055			279,586		14.79			7.10
Net occupancy			41,921			38,793			43,380		3.48			11.82
Intangible asset amortization			40,887			40,101			31,793		(22.24	)		(20.72	)
Regulatory agencies			17,938			32,103			29,848		66.40			(7.02	)
Outside services			18,834			25,288			22,785		20.98			(9.90	)
Professional services			15,938			16,981			16,361		2.65			(3.65	)
Equipment			15,413			16,383			15,811		2.58			(3.49	)
Software			15,038			17,205			14,728		(2.06	)		(14.40	)
Low income housing credit investment amortization			10,166			14,825			13,526		33.05			(8.76	)
Advertising and public relations			10,621			13,354			10,165		(4.29	)		(23.88	)
Communications			8,718			9,556			9,529		9.30			(0.28	)
Data processing			8,575			8,658			8,110		(5.42	)		(6.33	)
Foreclosed asset expense (income)			886			2,315			(198	)	nm			nm
(Reversal of) provision for losses on off-balance sheet commitments			26,000			4,000			(5,000	)	nm			nm
Expenses related to consolidated VIEs			-			-			5,039		nm			nm
Privatization-related expense			26,819			4,981			5,153		(80.79	)		3.45
Other			20,066			23,647			23,956		19.39			1.31
	Total noninterest expense	$	521,383		$	529,245		$	524,572		0.61		%	(0.88	)	%

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures (Unaudited)
Exhibit 8

The following table presents a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios.

	For the three months ended
(Dollars in thousands)	March 31, 2009			December 31, 2009			March 31, 2010

Net income (loss) attributable to UNBC	$	(9,808	)	$	41,883		$	77,344
Privatization-related expense, net of tax		16,360			2,993			3,128
Net accretion and amortization related to fair value adjustments, net of tax		4,518			10,556			9,016
Net income attributable to UNBC, excluding impact of privatization transaction	$	11,070		$	55,432		$	89,488

Average total assets	$	67,072,499		$	81,964,956		$	84,810,109
Net adjustments related to privatization transaction		2,621,275			2,569,276			2,547,358
Average total assets, excluding impact of privatization transaction	$	64,451,224		$	79,395,680		$	82,262,751

Return on average assets ⁽²⁾		(0.06	%)		0.20	%		0.37	%
Effect of privatization transaction		0.13	%		0.08	%		0.07	%
Return on average assets, excluding impact of privatization transaction		0.07	%		0.28	%		0.44	%

Average UNBC stockholder's equity ⁽²⁾	$	7,336,212		$	9,405,635		$	9,532,428
Net adjustments related to privatization transaction		2,416,165			2,416,677			2,412,648
Average UNBC stockholder's equity, excluding impact of privatization transaction	$	4,920,047		$	6,988,958		$	7,119,780

Return on average UNBC stockholder's equity		(0.54	%)		1.77	%		3.29	%
Effect of privatization transaction		1.45	%		1.38	%		1.81	%
Return on average UNBC stockholder's equity, excluding impact of privatization transaction		0.91	%		3.15	%		5.10	%

Noninterest expense	$	521,383		$	529,245		$	524,572
Privatization-related expense		26,819			4,981			5,153
Amortization related to fair value adjustments		42,542			39,743			33,740
Noninterest expense, excluding impact of privatization transaction	$	452,022		$	484,521		$	485,679

Total revenue	$	737,336		$	765,698		$	786,699
Accretion related to fair value adjustments		34,977			21,799			18,889
Total revenue, excluding impact of privatization transaction	$	702,359		$	743,899		$	767,810

Efficiency ratio ⁽³⁾		65.69	%		66.36	%		64.98	%
Effect of privatization transaction		(6.61	%)		(4.07	%)		(3.47	%)
Efficiency ratio, excluding impact of privatization transaction		59.08	%		62.29	%		61.51	%

Refer to Exhibit 9 for footnote explanations.

UnionBanCal Corporation and Subsidiaries

Footnotes


⁽¹⁾		Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.
⁽²⁾		Annualized.
⁽³⁾		The efficiency ratio is noninterest expense, excluding foreclosed asset expense (income), the provision for losses on off-balance sheet commitments, low income housing credit (LIHC) investment amortization expense and expenses of the consolidated VIEs, as a percentage of net interest income (taxable-equivalent basis) and noninterest income.
⁽⁴⁾		The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible equity (UNBC stockholder's equity less goodwill and intangible assets net of related deferred taxes) divided by tangible assets (total assets less goodwill and intangible assets net of related deferred taxes). The methodology of determining tangible common equity may differ among companies. The tangible common equity ratio has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions.
⁽⁵⁾		The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions.
⁽⁶⁾		Estimated as of March 31, 2010.
⁽⁷⁾		The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments.
⁽⁸⁾		Average balances on loans outstanding include all nonperforming loans and loans held for sale. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.
⁽⁹⁾		Includes interest bearing trading liabilities.
⁽¹⁰⁾		These ratios exclude the impact of the privatization transaction. Please refer to Exhibit 8 for a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and these non-GAAP measures.
nm = not meaningful

CONTACT:
UnionBanCal Corporation
Public Relations:
Stephen L. Johnson, 415-765-3252
Investor Relations:
Michelle R. Crandall, 415-765-2780

Delaware	001-15081	94-1234979
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Exhibit No.	Description
99.1	Press release dated April 29, 2010.

Dated:	April 29, 2010


		UNIONBANCAL CORPORATION


		By:	/s/ DAVID A. ANDERSON
			DAVID A. ANDERSON
			Executive Vice President and Controller
			(Duly Authorized Officer)

Exhibit No.	Description
99.1	Press release dated April 29, 2010.