UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report:
July
28, 2011
UnionBanCal
Corporation
(Exact
name of registrant as specified in its charter)
Delaware |
001-15081 |
94-1234979 |
(State of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
400
California Street
San
Francisco, CA 94104-1302
Tel.
(415) 765-2969
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see
General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 28, 2011, the Company issued a press release announcing its results of operations and financial condition for the second quarter of 2011, a copy of which is furnished herewith as Exhibit 99.1. The Company will report complete financial statements and additional analyses for the quarter ended June 30, 2011, as part of its Quarterly Report on Form 10-Q covering that period.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits:
Exhibit No. |
Description |
99.1 |
Press release dated July 28, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: |
July 28, 2011 |
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UNIONBANCAL CORPORATION |
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By: |
/s/ DAVID A. ANDERSON |
DAVID A. ANDERSON |
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Executive Vice President and Controller |
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(Duly Authorized Officer) |
EXHIBIT INDEX
Exhibit No. |
Description |
99.1 |
Press release dated July 28, 2011. |
Exhibit 99.1
UnionBanCal Corporation Reports Second Quarter Net Income of $242 Million
Second Quarter Highlights:
SAN FRANCISCO--(BUSINESS WIRE)--July 28, 2011--UnionBanCal Corporation (the Company or UB), parent company of San Francisco-based Union Bank, N.A., today reported second quarter 2011 results. Net income for second quarter was $242 million, up from $235 million for the prior quarter, and $154 million for the year-ago quarter. The improvement in net income compared with the prior quarter was primarily driven by lower noninterest expense.
Summary of Second Quarter Results
Second Quarter Total Revenue and Net Interest Income
For second quarter 2011, total revenue (net interest income plus noninterest income) was $854 million, down $4 million compared with the prior quarter. Net interest income decreased 1 percent, and noninterest income was flat. The net interest margin was 3.44 percent.
Net interest income for second quarter 2011 was $614 million, down $4 million, or 1 percent, compared with first quarter 2011. The decrease in net interest income was primarily due to a 5 basis point decline in the net interest margin, which was largely attributable to higher average rates paid on interest bearing liabilities, a lower average yield on total loans held for investment, and a higher average balance of lower-yielding interest bearing deposits in banks. A higher average yield on the securities portfolio, reflecting a continued portfolio remix, and a higher average balance of noninterest bearing deposits partially offset the decline in the margin.
Average total loans increased $566 million, or 1 percent, compared with first quarter 2011. Excluding FDIC covered loans, average total loans increased $700 million, or 1 percent, reflecting growth in residential mortgage loans and commercial & industrial loans. Average FDIC covered loans decreased $134 million, or 9 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $819 million, or 5 percent. Average interest bearing deposits decreased $2 billion, or 5 percent, primarily due to planned deposit runoff resulting from targeted rate reductions in transaction and money market accounts.
Compared with second quarter 2010, total revenue increased 1 percent, with net interest income up 2 percent and noninterest income down 2 percent. Average total loans increased 2 percent, primarily due to growth in residential mortgage loans and commercial & industrial loans. Average noninterest bearing deposits increased $3 billion, or 21 percent. Average interest bearing deposits decreased $13 billion, or 24 percent, primarily due to planned deposit runoff resulting from targeted rate reductions. The net interest margin, which increased 33 basis points compared with the year-ago quarter, benefited from a higher yield on securities; lower rates paid on total interest bearing deposits; and an improved earning assets mix, including a decreased volume of low-yielding interest bearing deposits in banks. Partially offsetting these benefits was a lower yield on average total loans.
Second Quarter Noninterest Income and Noninterest Expense
For second quarter 2011, noninterest income was $240 million, flat compared with prior quarter. Higher merchant banking fees were offset by lower trading account activities and lower other noninterest income. Other noninterest income decreased primarily due to a gain on the sale of MasterCard shares recorded in first quarter 2011, and an accretion adjustment to the indemnification asset associated with FDIC covered loans.
Noninterest income decreased $4 million, or 2 percent, compared with second quarter 2010. Service charges on deposit accounts decreased $8 million, reflecting lower overdraft volumes, and other noninterest income decreased $9 million, primarily due to an accretion adjustment to the indemnification asset associated with FDIC covered loans recorded in second quarter 2011. These decreases were partially offset by a $7 million increase in merchant banking fees.
Noninterest expense for second quarter 2011 was $578 million, down $37 million, or 6 percent, compared with first quarter 2011. The decrease was primarily due to a $44 million decrease in other noninterest expense, partially offset by an $11 million increase in professional and outside services expense. The decrease in other noninterest expense was primarily due to certain reserves for contingencies recorded in first quarter 2011. The provision for losses on off-balance sheet commitments was a benefit of $18 million in second quarter 2011, compared with a benefit of $13 million in first quarter 2011.
Noninterest expense for second quarter 2011 decreased $6 million, or 1 percent, compared with second quarter 2010. The decrease was primarily due to a reduction in the provision for off-balance sheet commitments and lower regulatory agencies expense, resulting from a reduction in the assessment rate for deposit insurance and lower deposit balances. The decrease was substantially offset by higher salaries and employee benefits expense.
Balance Sheet
At June 30, 2011, the Company had total assets of $80.1 billion, down $0.5 billion, or 1 percent, compared with March 31, 2011, and down $4.2 billion, or 5 percent, compared with June 30, 2010.
At June 30, 2011, total deposits were $57.2 billion, down $1.5 billion, or 3 percent, compared with March 31, 2011, and down $9.1 billion, or 14 percent, compared with June 30, 2010. Core deposits at June 30, 2011, were $46.4 billion, down $1.6 billion, or 3 percent, compared with March 31, 2011, and down $6.5 billion, or 12 percent, compared with June 30, 2010. The decline in total deposits and core deposits reflects planned runoff of targeted higher-rate deposits. At June 30, 2011, the Company’s loan-to-deposit ratio was 86 percent, up from 82 percent at March 31, 2011, and up from 73 percent at June 30, 2010.
Credit Quality
The total provision for credit losses was a benefit of $112 million for second quarter 2011, compared with a benefit of $115 million for first quarter 2011, as asset quality continued to improve overall. Nonperforming assets, excluding FDIC covered assets, declined $137 million, or 17 percent, compared with prior quarter. Net charge-offs increased $58 million, or 109 percent, compared with prior quarter, primarily reflecting the charge-off of a single large lease financing credit, which had been substantially reserved for in prior quarters.
Excluding FDIC covered assets, nonperforming assets were $678 million, or 0.86 percent of total assets at June 30, 2011, compared with $815 million, or 1.03 percent of total assets, at March 31, 2011, and $1.381 billion, or 1.68 percent of total assets, at June 30, 2010.
Net charge-offs for second quarter 2011 were $111 million, up from $53 million for first quarter 2011, reflecting the charge-off of a $71 million lease financing credit in second quarter 2011. As a percent of average total loans, excluding FDIC covered assets, net charge-offs for second quarter 2011 were 0.92 percent annualized, up from 0.46 percent annualized for first quarter 2011. For second quarter 2010, net charge-offs were $94 million, or 0.81 percent annualized of average total loans.
The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In second quarter 2011, the provision for loan losses was a benefit of $94 million and the provision for losses on off-balance sheet commitments was a benefit of $18 million.
The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 1.97 percent at June 30, 2011, compared with 2.48 percent at March 31, 2011, and 3.29 percent at June 30, 2010. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 144 percent at June 30, 2011, compared with 148 percent at March 31, 2011, and 115 percent at June 30, 2010.
Capital
Total stockholder’s equity was $10.7 billion and tangible common equity was $8.0 billion at June 30, 2011. The Company’s tangible common equity ratio was 10.29 percent at June 30, 2011, up 49 basis points from 9.80 percent at March 31, 2011, and up 150 basis points from 8.79 percent at June 30, 2010. The Basel I Tier 1 common capital ratio at June 30, 2011, was 13.08 percent, compared with 12.84 percent at March 31, 2011. The Company’s Basel I Tier 1 and Total risk-based capital ratios at June 30, 2011, were 13.08 percent and 15.41 percent, respectively.
Non-GAAP Financial Measures
This press release contains certain references to financial measures identified as excluding privatization transaction expenses, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated variable interest entities, merger costs related to acquisitions, or asset impairment charges, which are adjustments from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP in that they exclude unusual or non-recurring charges, losses or credits. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information which is important to a proper understanding of the Company’s core business results. This press release also includes additional capital ratios (the tangible common equity and Tier 1 common capital ratios) to facilitate the understanding of the Company’s capital structure and for use in assessing and comparing the quality and composition of UnionBanCal’s capital structure to other financial institutions. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $80.1 billion at June 30, 2011. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 403 full-service branches in California, Washington, Oregon and Texas, as well as two international offices, on June 30, 2011. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||||||
Financial Highlights (Unaudited) | |||||||||||||||||||||||||||||||
Exhibit 1 |
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As of and for the Three Months Ended |
Percent Change to |
||||||||||||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
June 30, |
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Results of operations: | |||||||||||||||||||||||||||||||
Net interest income | $ | 614 | $ | 618 | $ | 631 | $ | 618 | $ | 601 | (1 | ) | % | 2 | % | ||||||||||||||||
Noninterest income | 240 | 240 | 251 | 218 | 244 | - | (2 | ) | |||||||||||||||||||||||
Total revenue | 854 | 858 | 882 | 836 | 845 | - | 1 | ||||||||||||||||||||||||
Noninterest expense | 578 | 615 | 701 | 562 | 584 | (6 | ) | (1 | ) | ||||||||||||||||||||||
Pre-tax, pre-provision income | 276 | 243 | 181 | 274 | 261 | 14 | 6 | ||||||||||||||||||||||||
(Reversal of) provision for loan losses | (94 | ) | (102 | ) | (40 | ) | 8 | 44 | 8 | nm | |||||||||||||||||||||
Income before income taxes and including noncontrolling interests |
370 | 345 | 221 | 266 | 217 | 7 | 71 | ||||||||||||||||||||||||
Income tax expense | 131 | 114 | 58 | 99 | 67 | 15 | 96 | ||||||||||||||||||||||||
Net income including noncontrolling interests | 239 | 231 | 163 | 167 | 150 | 3 | 59 | ||||||||||||||||||||||||
Deduct: Net loss from noncontrolling interests | 3 | 4 | 9 | 3 | 4 | (25 | ) | (25 | ) | ||||||||||||||||||||||
Net income attributable to UnionBanCal Corporation (UNBC) |
$ | 242 | $ | 235 | $ | 172 | $ | 170 | $ | 154 | 3 | 57 | |||||||||||||||||||
Balance sheet (end of period): | |||||||||||||||||||||||||||||||
Total assets | $ | 80,093 | $ | 80,642 | $ | 79,097 | $ | 79,840 | $ | 84,310 | (1 | ) | (5 | ) | |||||||||||||||||
Total securities | 19,430 | 21,673 | 22,114 | 19,630 | 23,055 | (10 | ) | (16 | ) | ||||||||||||||||||||||
Total loans held for investment | 48,967 | 48,105 | 48,094 | 47,893 | 48,320 | 2 | 1 | ||||||||||||||||||||||||
Core deposits (3) | 46,443 | 48,018 | 48,667 | 50,596 | 52,935 | (3 | ) | (12 | ) | ||||||||||||||||||||||
Total deposits | 57,181 | 58,677 | 59,954 | 61,541 | 66,271 | (3 | ) | (14 | ) | ||||||||||||||||||||||
Long-term debt | 7,069 | 6,078 | 5,598 | 4,458 | 4,716 | 16 | 50 | ||||||||||||||||||||||||
UNBC stockholder's equity | 10,667 | 10,355 | 10,125 | 10,134 | 9,942 | 3 | 7 | ||||||||||||||||||||||||
Balance sheet (period average): | |||||||||||||||||||||||||||||||
Total assets | $ | 80,334 | $ | 80,056 | $ | 80,182 | $ | 82,265 | $ | 85,511 | - | (6 | ) | ||||||||||||||||||
Total securities | 20,543 | 21,601 | 21,560 | 22,487 | 23,089 | (5 | ) | (11 | ) | ||||||||||||||||||||||
Total loans held for investment | 48,849 | 48,283 | 47,952 | 48,105 | 47,827 | 1 | 2 | ||||||||||||||||||||||||
Earning assets | 71,709 | 71,351 | 71,517 | 73,603 | 77,412 | 1 | (7 | ) | |||||||||||||||||||||||
Core deposits (3) | 47,510 | 48,399 | 50,778 | 52,299 | 54,381 | (2 | ) | (13 | ) | ||||||||||||||||||||||
Total deposits | 58,333 | 59,471 | 61,728 | 64,822 | 68,104 | (2 | ) | (14 | ) | ||||||||||||||||||||||
UNBC stockholder's equity | 10,366 | 10,167 | 10,034 | 9,913 | 9,631 | 2 | 8 | ||||||||||||||||||||||||
Performance ratios: | |||||||||||||||||||||||||||||||
Return on average assets (2) | 1.21 | % | 1.19 | % | 0.85 | % | 0.82 | % | 0.72 | % | |||||||||||||||||||||
Return on average UNBC stockholder's equity (2) | 9.36 | 9.38 | 6.81 | 6.80 | 6.40 | ||||||||||||||||||||||||||
Net interest margin (1) (2) | 3.44 | 3.49 | 3.53 | 3.36 | 3.11 | ||||||||||||||||||||||||||
Capital ratios: | |||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (7) | 13.08 | % | 12.84 | % | 12.44 | % | 12.27 | % | 11.95 | % | |||||||||||||||||||||
Total risk-based capital ratio (7) | 15.41 | 15.41 | 15.01 | 14.97 | 14.64 | ||||||||||||||||||||||||||
Leverage ratio (7) | 10.96 | 10.66 | 10.34 | 9.86 | 9.23 | ||||||||||||||||||||||||||
Tier 1 common capital ratio (6) (7) | 13.08 | 12.84 | 12.42 | 12.25 | 11.93 | ||||||||||||||||||||||||||
Tangible common equity ratio (5) | 10.29 | 9.80 | 9.67 | 9.56 | 8.79 | ||||||||||||||||||||||||||
Selected financial ratios excluding impact of privatization transaction (11): |
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From net income attributable to UNBC: | |||||||||||||||||||||||||||||||
Return on average assets (2) | 1.28 | % | 1.24 | % | 0.92 | % | 0.89 | % | 0.78 | % | |||||||||||||||||||||
Return on average stockholder's equity (2) | 12.45 | 12.41 | 9.32 | 9.43 | 9.01 | ||||||||||||||||||||||||||
Core efficiency ratio (4) | 63.74 | 67.47 | 68.83 | 61.13 | 62.39 | ||||||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||
Financial Highlights (Unaudited) | ||||||||||||||
Exhibit 2 |
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As of and for the Six Months Ended |
Percent Change to June 30, |
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(Dollars in millions) |
June 30, |
June 30, |
June 30, |
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Results of operations: | ||||||||||||||
Net interest income | $ | 1,232 | $ | 1,175 | 5 | % | ||||||||
Noninterest income | 480 | 454 | 6 | |||||||||||
Total revenue | 1,712 | 1,629 | 5 | |||||||||||
Noninterest expense | 1,193 | 1,109 | 8 | |||||||||||
Pre-tax, pre-provision income | 519 | 520 | - | |||||||||||
(Reversal of) provision for loan losses | (196 | ) |
214 |
|
nm |
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Income before income taxes and including noncontrolling interests |
715 | 306 | 134 | |||||||||||
Income tax expense | 245 | 82 | 199 | |||||||||||
Net income including noncontrolling interests | 470 | 224 | 110 | |||||||||||
Deduct: Net loss from noncontrolling interests |
7 | 7 | - | |||||||||||
Net income attributable to UNBC | $ | 477 | $ | 231 | 106 | |||||||||
Balance sheet (end of period): | ||||||||||||||
Total assets | $ | 80,093 | $ | 84,310 | (5 | ) | ||||||||
Total securities | 19,430 | 23,055 | (16 | ) | ||||||||||
Total loans held for investment | 48,967 | 48,320 | 1 | |||||||||||
Core deposits (3) | 46,443 | 52,935 | (12 | ) | ||||||||||
Total deposits | 57,181 | 66,271 | (14 | ) | ||||||||||
Long-term debt | 7,069 | 4,716 | 50 | |||||||||||
UNBC stockholder's equity | 10,667 | 9,942 | 7 | |||||||||||
Balance sheet (period average): | ||||||||||||||
Total assets | $ | 80,195 | $ | 85,162 | (6 | ) | ||||||||
Total securities | 21,069 | 23,316 | (10 | ) | ||||||||||
Total loans held for investment | 48,568 | 47,340 | 3 | |||||||||||
Total earning assets | 71,531 | 77,535 | (8 | ) | ||||||||||
Core deposits (3) | 47,952 | 54,484 | (12 | ) | ||||||||||
Total deposits | 58,899 | 67,972 | (13 | ) | ||||||||||
UNBC stockholder's equity | 10,268 | 9,582 | 7 | |||||||||||
Performance ratios: | ||||||||||||||
Return on average assets (2) | 1.20 | % | 0.55 | % | ||||||||||
Return on average UNBC stockholder's equity (2) | 9.37 | 4.86 | ||||||||||||
Net interest margin (1) (2) | 3.46 | 3.05 | ||||||||||||
Capital ratios: | ||||||||||||||
Tier 1 risk-based capital ratio (7) | 13.08 | % | 11.95 | % | ||||||||||
Total risk-based capital ratio (7) | 15.41 | 14.64 | ||||||||||||
Leverage ratio (7) | 10.96 | 9.23 | ||||||||||||
Tier 1 common capital ratio (6) (7) | 13.08 | 11.93 | ||||||||||||
Tangible common equity ratio (5) | 10.29 | 8.79 | ||||||||||||
Selected financial ratios excluding impact of privatization transaction (11): |
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From net income attributable to UNBC: | ||||||||||||||
Return on average assets (2) | 1.26 | % | 0.61 | % | ||||||||||
Return on average stockholder's equity (2) | 12.43 | 7.08 | ||||||||||||
Core efficiency ratio (4) | 65.60 | 61.97 | ||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||
Credit Quality (Unaudited) | |||||||||||||||||||||||||||||||||
Exhibit 3 |
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As of and for the Three Months Ended |
Percent Change to |
|||||||||||||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
June 30, |
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Credit Data: | |||||||||||||||||||||||||||||||||
(Reversal of) provision for loan losses, excluding FDIC covered loans | $ | (92 | ) | $ | (102 | ) | $ | (48 | ) | $ | 8 | $ |
44 |
|
10 | % | nm | % | |||||||||||||||
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification |
(2 | ) | - | 8 | - | - | nm | nm | |||||||||||||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments | (18 | ) | (13 | ) | (2 | ) | (8 | ) | 1 | (38 | ) | nm | |||||||||||||||||||||
Total (reversal of) provision for credit losses | $ | (112 | ) | $ | (115 | ) | $ | (42 | ) | $ | - | $ | 45 | 3 | nm | ||||||||||||||||||
Net loans charged off | $ | 111 | $ | 53 | $ | 64 | $ | 89 | $ | 94 | 109 | 18 | |||||||||||||||||||||
Nonperforming assets | 865 | 1,032 | 1,142 | 1,487 | 1,561 | (16 | ) | (45 | ) | ||||||||||||||||||||||||
Credit Ratios: | |||||||||||||||||||||||||||||||||
Allowance for loan losses to: | |||||||||||||||||||||||||||||||||
Total loans held for investment | 1.69 | % | 2.15 | % | 2.48 | % | 2.67 | % | 2.81 | % | |||||||||||||||||||||||
Nonaccrual loans | 114.05 | 118.50 | 123.40 | 98.38 | 100.38 | ||||||||||||||||||||||||||||
Allowances for credit losses to (8) : | |||||||||||||||||||||||||||||||||
Total loans held for investment | 1.96 | 2.46 | 2.81 | 3.01 | 3.17 | ||||||||||||||||||||||||||||
Nonaccrual loans | 132.19 | 135.61 | 140.23 | 111.04 | 113.13 | ||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment (2) | 0.91 | 0.44 | 0.52 | 0.74 | 0.78 | ||||||||||||||||||||||||||||
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO) |
1.76 | 2.14 | 2.37 | 3.09 | 3.22 | ||||||||||||||||||||||||||||
Nonperforming assets to total assets | 1.08 | 1.28 | 1.44 | 1.86 | 1.85 | ||||||||||||||||||||||||||||
Nonaccrual loans to total loans held for investment | 1.48 | 1.81 | 2.01 | 2.71 | 2.80 | ||||||||||||||||||||||||||||
Excluding FDIC covered assets (12): | |||||||||||||||||||||||||||||||||
Allowance for loan losses to: | |||||||||||||||||||||||||||||||||
Total loans held for investment | 1.70 | % | 2.17 | % | 2.50 | % | 2.76 | % | 2.92 | % | |||||||||||||||||||||||
Nonaccrual loans | 124.09 | 129.10 | 137.32 | 110.48 | 102.17 | ||||||||||||||||||||||||||||
Allowances for credit losses to (8) : | |||||||||||||||||||||||||||||||||
Total loans held for investment | 1.97 | 2.48 | 2.85 | 3.12 | 3.29 | ||||||||||||||||||||||||||||
Nonaccrual loans | 144.23 | 148.17 | 156.44 | 124.70 | 115.14 | ||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment (2) | 0.92 | 0.46 | 0.54 | 0.77 | 0.81 | ||||||||||||||||||||||||||||
Nonperforming assets to total loans held for investment and OREO |
1.42 | 1.74 | 1.91 | 2.60 | 2.97 | ||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.86 | 1.03 | 1.15 | 1.54 | 1.68 | ||||||||||||||||||||||||||||
Nonaccrual loans to total loans held for investment | 1.37 | 1.68 | 1.82 | 2.50 | 2.86 | ||||||||||||||||||||||||||||
As of and for the |
Percent Change to |
||||||||||||||||||||||||||||||||
(Dollars in millions) |
June 30, |
June 30, |
June 30, |
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Credit Data: | |||||||||||||||||||||||||||||||||
(Reversal of) provision for loan losses, excluding FDIC covered loans | $ | (194 | ) | $ | 214 | nm | % | ||||||||||||||||||||||||||
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification | (2 | ) | - | nm | |||||||||||||||||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments | (31 | ) | (4 | ) | nm | ||||||||||||||||||||||||||||
Total (reversal of) provision for credit losses | $ | (227 | ) | $ | 210 | nm | |||||||||||||||||||||||||||
Net loans charged off | $ | 164 | $ | 213 | (23 | ) | |||||||||||||||||||||||||||
Nonperforming assets | 865 | 1,561 | (45 | ) | |||||||||||||||||||||||||||||
Credit Ratios: | |||||||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment (2) | 0.68 | % | 0.91 | % | |||||||||||||||||||||||||||||
Nonperforming assets to total assets | 1.08 | 1.85 | |||||||||||||||||||||||||||||||
Excluding FDIC covered assets (12): | |||||||||||||||||||||||||||||||||
Net loans charged off to average total loans held for investment (2) | 0.69 | % | 0.92 | % | |||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.86 | 1.68 | |||||||||||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||
Exhibit 4 |
|||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
Interest Income | |||||||||||||||||||||
Loans | $ | 565 | $ | 559 | $ | 576 | $ | 582 | $ | 568 | |||||||||||
Securities | 138 | 143 | 137 | 132 | 135 | ||||||||||||||||
Other | 2 | 1 | 1 | 2 | 5 | ||||||||||||||||
Total interest income | 705 | 703 | 714 | 716 | 708 | ||||||||||||||||
Interest Expense | |||||||||||||||||||||
Deposits | 53 | 53 | 56 | 70 | 78 | ||||||||||||||||
Commercial paper and other short-term borrowings | 2 | 1 | - | 1 | 2 | ||||||||||||||||
Long-term debt | 36 | 31 | 27 | 27 | 27 | ||||||||||||||||
Total interest expense | 91 | 85 | 83 | 98 | 107 | ||||||||||||||||
Net Interest Income | 614 | 618 | 631 | 618 | 601 | ||||||||||||||||
(Reversal of) provision for loan losses | (94 | ) | (102 | ) | (40 | ) | 8 | 44 | |||||||||||||
Net interest income after (reversal of) provision for loan losses | 708 | 720 | 671 | 610 | 557 | ||||||||||||||||
Noninterest Income | |||||||||||||||||||||
Service charges on deposit accounts | 56 | 57 | 58 | 62 | 64 | ||||||||||||||||
Trust and investment management fees | 34 | 34 | 34 | 33 | 35 | ||||||||||||||||
Trading account activities | 28 | 33 | 33 | 32 | 25 | ||||||||||||||||
Merchant banking fees | 29 | 19 | 28 | 19 | 22 | ||||||||||||||||
Securities gains, net | 29 | 28 | 33 | 11 | 27 | ||||||||||||||||
Brokerage commissions and fees | 12 | 13 | 10 | 11 | 10 | ||||||||||||||||
Card processing fees, net | 12 | 10 | 10 | 10 | 12 | ||||||||||||||||
Other | 40 | 46 | 45 | 40 | 49 | ||||||||||||||||
Total noninterest income | 240 | 240 | 251 | 218 | 244 | ||||||||||||||||
Noninterest Expense | |||||||||||||||||||||
Salaries and employee benefits | 346 | 344 | 338 | 293 | 319 | ||||||||||||||||
Net occupancy and equipment | 67 | 65 | 64 | 65 | 64 | ||||||||||||||||
Professional and outside services | 55 | 44 | 56 | 54 | 50 | ||||||||||||||||
Intangible asset amortization | 24 | 25 | 31 | 31 | 30 | ||||||||||||||||
Regulatory assessments | 19 | 21 | 26 | 30 | 30 | ||||||||||||||||
(Reversal of) provision for losses on off-balance sheet commitments |
(18 | ) | (13 | ) | (2 | ) | (8 | ) | 1 | ||||||||||||
Other | 85 | 129 | 188 | 97 | 90 | ||||||||||||||||
Total noninterest expense | 578 | 615 | 701 | 562 | 584 | ||||||||||||||||
Income before income taxes and including noncontrolling interests |
370 | 345 | 221 | 266 | 217 | ||||||||||||||||
Income tax expense | 131 | 114 | 58 | 99 | 67 | ||||||||||||||||
Net Income including Noncontrolling Interests | 239 | 231 | 163 | 167 | 150 | ||||||||||||||||
Deduct: Net loss from noncontrolling interests | 3 | 4 | 9 | 3 | 4 | ||||||||||||||||
Net Income attributable to UNBC | $ | 242 | $ | 235 | $ | 172 | $ | 170 | $ | 154 |
UnionBanCal Corporation and Subsidiaries | ||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||
Exhibit 5 |
||||||||||
For the Six Months Ended | ||||||||||
(Dollars in millions) |
June 30, |
June 30, |
||||||||
Interest Income | ||||||||||
Loans | $ | 1,124 | $ | 1,108 | ||||||
Securities | 281 | 278 | ||||||||
Other | 3 | 10 | ||||||||
Total interest income | 1,408 | 1,396 | ||||||||
Interest Expense | ||||||||||
Deposits | 106 | 164 | ||||||||
Commercial paper and other short-term borrowings | 3 | 3 | ||||||||
Long-term debt | 67 | 54 | ||||||||
Total interest expense | 176 | 221 | ||||||||
Net Interest Income | 1,232 | 1,175 | ||||||||
(Reversal of) provision for loan losses | (196 | ) | 214 | |||||||
Net interest income after (reversal of) provision for loan losses | 1,428 | 961 | ||||||||
Noninterest Income | ||||||||||
Service charges on deposit accounts | 113 | 130 | ||||||||
Trust and investment management fees | 68 | 66 | ||||||||
Trading account activities | 61 | 46 | ||||||||
Securities gains, net | 57 | 61 | ||||||||
Merchant banking fees | 48 | 36 | ||||||||
Brokerage commissions and fees | 25 | 19 | ||||||||
Card processing fees, net | 22 | 21 | ||||||||
Other | 86 | 75 | ||||||||
Total noninterest income | 480 | 454 | ||||||||
Noninterest Expense | ||||||||||
Salaries and employee benefits | 690 | 599 | ||||||||
Net occupancy and equipment | 132 | 123 | ||||||||
Professional and outside services | 99 | 89 | ||||||||
Intangible asset amortization | 49 | 62 | ||||||||
Regulatory assessments | 40 | 60 | ||||||||
(Reversal of) provision for losses on off-balance sheet commitments |
(31 | ) | (4 | ) | ||||||
Other | 214 | 180 | ||||||||
Total noninterest expense | 1,193 | 1,109 | ||||||||
Income before income taxes and including noncontrolling interests |
715 | 306 | ||||||||
Income tax expense | 245 | 82 | ||||||||
Net Income including Noncontrolling Interests | 470 | 224 | ||||||||
Deduct: Net loss from noncontrolling interests | 7 | 7 | ||||||||
Net Income attributable to UNBC | $ | 477 | $ | 231 |
UnionBanCal Corporation and Subsidiaries |
|||||||||||||||||||||||||
Consolidated Balance Sheets |
|||||||||||||||||||||||||
Exhibit 6 |
|||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and due from banks | $ | 1,233 | $ | 1,247 | $ | 946 | $ | 1,172 | $ | 1,221 | |||||||||||||||
Interest bearing deposits in banks (includes $24 at June 30, 2011, $23 at March 31, 2011, $11 at December 31, 2010, $9 at September 30, 2010 and $13 at June 30, 2010 related to consolidated variable interest entities (VIEs)) |
2,477 | 1,912 | 217 | 2,419 | 2,873 | ||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements |
78 | 24 | 11 | 595 | 288 | ||||||||||||||||||||
Total cash and cash equivalents | 3,788 | 3,183 | 1,174 | 4,186 | 4,382 | ||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||
Pledged as collateral | 1 | 6 | 43 | 37 | 64 | ||||||||||||||||||||
Held in portfolio | 897 | 870 | 956 | 1,134 | 1,055 | ||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Pledged as collateral | 340 | 308 | 10 | - | - | ||||||||||||||||||||
Held in portfolio | 17,758 | 20,026 | 20,781 | 18,327 | 21,789 | ||||||||||||||||||||
Securities held to maturity (Fair value: June 30, 2011, $1,610; March 31, 2011, $1,646; December 31, 2010, $1,560; September 30, 2010, $1,481 and June 30, 2010, $1,434) |
1,332 | 1,339 | 1,323 | 1,303 | 1,266 | ||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Loans, excluding FDIC covered loans | 47,718 | 46,715 | 46,584 | 46,214 | 46,496 | ||||||||||||||||||||
FDIC covered loans | 1,249 | 1,390 | 1,510 | 1,679 | 1,824 | ||||||||||||||||||||
Total loans held for investment | 48,967 | 48,105 | 48,094 | 47,893 | 48,320 | ||||||||||||||||||||
Allowance for loan losses | (826 | ) | (1,034 | ) | (1,191 | ) | (1,277 | ) | (1,358 | ) | |||||||||||||||
Loans held for investment, net | 48,141 | 47,071 | 46,903 | 46,616 | 46,962 | ||||||||||||||||||||
Premises and equipment, net | 686 | 694 | 712 | 674 | 671 | ||||||||||||||||||||
Intangible assets, net | 407 | 432 | 457 | 487 | 517 | ||||||||||||||||||||
Goodwill | 2,447 | 2,447 | 2,456 | 2,456 | 2,456 | ||||||||||||||||||||
FDIC indemnification asset | 650 | 699 | 783 | 824 | 907 | ||||||||||||||||||||
Other assets (includes $272 at June 30, 2011, $277 at March 31, 2011, $283 at December 31, 2010, $291 at September 30, 2010 and $294 at June 30, 2010 related to consolidated VIEs) |
3,646 | 3,567 | 3,499 | 3,796 | 4,241 | ||||||||||||||||||||
Total assets | $ | 80,093 | $ | 80,642 | $ | 79,097 | $ | 79,840 | $ | 84,310 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||
Noninterest bearing | $ | 17,708 | $ | 18,062 | $ | 16,343 | $ | 15,426 | $ | 15,319 | |||||||||||||||
Interest bearing |
39,473 | 40,615 | 43,611 | 46,115 | 50,952 | ||||||||||||||||||||
Total deposits | 57,181 | 58,677 | 59,954 | 61,541 | 66,271 | ||||||||||||||||||||
Commercial paper and other short-term borrowings | 2,838 | 3,260 | 1,356 | 977 | 999 | ||||||||||||||||||||
Long-term debt (includes $8 at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010 related to consolidated VIEs) |
7,069 | 6,078 | 5,598 | 4,458 | 4,716 | ||||||||||||||||||||
Trading account liabilities | 730 | 696 | 774 | 1,010 | 815 | ||||||||||||||||||||
Other liabilities (includes $2 at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010 related to consolidated VIEs) |
1,338 | 1,303 | 1,024 | 1,447 | 1,289 | ||||||||||||||||||||
Total liabilities | 69,156 | 70,014 | 68,706 | 69,433 | 74,090 | ||||||||||||||||||||
Equity |
|||||||||||||||||||||||||
UNBC Stockholder's Equity: | |||||||||||||||||||||||||
Common stock, par value $1 per share: | |||||||||||||||||||||||||
Authorized 300,000,000 shares; 136,330,829 shares issued | 136 | 136 | 136 | 136 | 136 | ||||||||||||||||||||
Additional paid-in capital | 5,199 | 5,201 | 5,198 | 5,195 | 5,195 | ||||||||||||||||||||
Retained earnings | 5,945 | 5,703 | 5,468 | 5,296 | 5,131 | ||||||||||||||||||||
Accumulated other comprehensive loss | (613 | ) | (685 | ) | (677 | ) | (493 | ) | (520 | ) | |||||||||||||||
Total UNBC stockholder's equity | 10,667 | 10,355 | 10,125 | 10,134 | 9,942 | ||||||||||||||||||||
Noncontrolling interests | 270 | 273 | 266 | 273 | 278 | ||||||||||||||||||||
Total equity | 10,937 | 10,628 | 10,391 | 10,407 | 10,220 | ||||||||||||||||||||
Total liabilities and equity | $ | 80,093 | $ | 80,642 | $ | 79,097 | $ | 79,840 | $ | 84,310 | |||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||
Loans and Nonperforming Assets (Unaudited) | ||||||||||||||||||||||
Exhibit 7 |
||||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||||||||||
|
||||||||||||||||||||||
Loans held for investment (period end) | ||||||||||||||||||||||
Loans held for investment, excluding FDIC covered loans: | ||||||||||||||||||||||
Commercial and industrial | $ | 15,854 | $ | 15,143 | $ | 15,162 | $ | 14,650 | $ | 14,675 | ||||||||||||
Commercial mortgage | 7,729 | 7,749 | 7,816 | 7,893 | 8,062 | |||||||||||||||||
Construction | 1,055 | 1,153 | 1,460 | 1,850 | 2,114 | |||||||||||||||||
Lease financing | 701 | 773 | 757 | 635 | 642 | |||||||||||||||||
Total commercial portfolio | 25,339 | 24,818 | 25,195 | 25,028 | 25,493 | |||||||||||||||||
Residential mortgage |
|
18,610 | 18,110 | 17,531 | 17,295 | 17,089 | ||||||||||||||||
Home equity and other consumer loans | 3,769 | 3,787 | 3,858 | 3,891 | 3,914 | |||||||||||||||||
Total consumer portfolio | 22,379 | 21,897 | 21,389 | 21,186 | 21,003 | |||||||||||||||||
Total loans held for investment, excluding FDIC covered loans |
47,718 | 46,715 | 46,584 | 46,214 | 46,496 | |||||||||||||||||
FDIC covered loans: |
||||||||||||||||||||||
Commercial and industrial | 332 | 387 | 433 | 495 | 554 | |||||||||||||||||
Commercial mortgage | 662 | 707 | 733 | 796 | 818 | |||||||||||||||||
Construction | 155 | 184 | 222 | 251 | 273 | |||||||||||||||||
Residential mortgage | 70 | 77 | 81 | 88 | 117 | |||||||||||||||||
Home equity and other consumer loans | 30 | 35 | 41 | 49 | 62 | |||||||||||||||||
Total FDIC covered loans | 1,249 | 1,390 | 1,510 | 1,679 | 1,824 | |||||||||||||||||
Total loans held for investment |
$ | 48,967 | $ | 48,105 | $ | 48,094 | $ | 47,893 | $ | 48,320 | ||||||||||||
Nonperforming Assets (period end) | ||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||
Commercial and industrial | $ | 110 | $ | 113 | $ | 115 | $ | 167 | $ | 176 | ||||||||||||
Commercial mortgage | 230 | 265 | 329 | 481 | 510 | |||||||||||||||||
Construction | 47 | 71 | 140 | 244 | 373 | |||||||||||||||||
Lease financing | - | 71 | - | - | - | |||||||||||||||||
Total commercial portfolio | 387 | 520 | 584 | 892 | 1,059 | |||||||||||||||||
Residential mortgage | 242 | 241 | 243 | 237 | 245 | |||||||||||||||||
Home equity and other consumer loans | 23 | 22 | 22 | 27 | 25 | |||||||||||||||||
Total consumer portfolio | 265 | 263 | 265 | 264 | 270 | |||||||||||||||||
Total nonaccrual loans, excluding FDIC covered loans | 652 | 783 | 849 | 1,156 | 1,329 | |||||||||||||||||
FDIC covered loans | 72 | 90 | 116 | 142 | 24 | |||||||||||||||||
Total nonaccrual loans | 724 | 873 | 965 | 1,298 | 1,353 | |||||||||||||||||
OREO | 26 | 32 | 41 | 47 | 52 | |||||||||||||||||
FDIC covered OREO | 115 | 127 | 136 | 142 | 156 | |||||||||||||||||
Total nonperforming assets | $ | 865 | $ | 1,032 | $ | 1,142 | $ | 1,487 | $ | 1,561 | ||||||||||||
Total nonperforming assets, excluding FDIC covered assets | $ | 678 | $ | 815 | $ | 890 | $ | 1,203 | $ | 1,381 | ||||||||||||
Loans 90 days or more past due and still accruing (13) |
$ | 2 | $ | 3 | $ | 2 | $ | 17 | $ | 6 | ||||||||||||
Troubled debt restructured loans that are still accruing | $ | 82 | $ | 45 | $ | 22 | $ | 25 | $ | 9 | ||||||||||||
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above) | $ | 184 | $ | 189 | $ | 198 | $ | 149 | $ | 88 | ||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||
Allowances for Credit Losses (Unaudited) | |||||||||||||||||||||||||||
Exhibit 8 |
|||||||||||||||||||||||||||
As of and for the Three Months Ended | |||||||||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||||||||
Analysis of Allowances for Credit Losses | |||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,034 | $ | 1,191 | $ | 1,277 | $ | 1,358 | $ | 1,408 | |||||||||||||||||
(Reversal of) provision for loan losses, excluding FDIC covered loans | (92 | ) | (102 | ) | (48 | ) | 8 | 44 | |||||||||||||||||||
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification |
(2 | ) | - | 8 | - | - | |||||||||||||||||||||
Increase (decrease) in allowance covered by FDIC indemnification | (3 | ) | (2 | ) | 17 | - | - | ||||||||||||||||||||
Other | - | - | 1 | - | - | ||||||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||||||
Commercial and industrial | (11 | ) | (23 | ) | (18 | ) | (37 | ) | (30 | ) | |||||||||||||||||
Commercial mortgage | (14 | ) | (24 | ) | (51 | ) | (27 | ) | (51 | ) | |||||||||||||||||
Construction | (3 | ) | (1 | ) | (4 | ) | (2 | ) | (10 | ) | |||||||||||||||||
Lease financing | (71 | ) | - | - | - | - | |||||||||||||||||||||
Total commercial portfolio | (99 | ) | (48 | ) | (73 | ) | (66 | ) | (91 | ) | |||||||||||||||||
Residential mortgage | (13 | ) | (14 | ) | (8 | ) | (25 | ) | (12 | ) | |||||||||||||||||
Home equity and other consumer loans | (10 | ) | (11 | ) | (15 | ) | (11 | ) | (9 | ) | |||||||||||||||||
Total consumer portfolio | (23 | ) | (25 | ) | (23 | ) | (36 | ) | (21 | ) | |||||||||||||||||
FDIC covered loans | (1 | ) | - | - | - | - | |||||||||||||||||||||
Total loans charged off | (123 | ) | (73 | ) | (96 | ) | (102 | ) | (112 | ) | |||||||||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||||||||||||
Commercial and industrial | 8 | 7 | 19 | 5 | 8 | ||||||||||||||||||||||
Commercial mortgage | 2 | 8 | 8 | 1 | 2 | ||||||||||||||||||||||
Construction | 2 | 4 | 3 | 7 | 8 | ||||||||||||||||||||||
Total commercial portfolio | 12 | 19 | 30 | 13 | 18 | ||||||||||||||||||||||
Residential mortgage | - | - | 1 | - | - | ||||||||||||||||||||||
Home equity and other consumer loans | - | 1 | 1 | - | - | ||||||||||||||||||||||
Total consumer portfolio | - | 1 | 2 | - | - | ||||||||||||||||||||||
Total recoveries of loans previously charged off | 12 | 20 | 32 | 13 | 18 | ||||||||||||||||||||||
Net loans charged off | (111 | ) | (53 | ) | (64 | ) | (89 | ) | (94 | ) | |||||||||||||||||
Ending balance of allowance for loan losses | 826 | 1,034 | 1,191 | 1,277 | 1,358 | ||||||||||||||||||||||
Allowance for losses on off-balance sheet commitments | 131 | 150 | 162 | 164 | 172 | ||||||||||||||||||||||
Allowances for credit losses | $ | 957 | $ | 1,184 | $ | 1,353 | $ | 1,441 | $ | 1,530 | |||||||||||||||||
Components of allowance for loan losses: | |||||||||||||||||||||||||||
Allowance for loan losses, excluding allowance on FDIC covered loans | $ | 809 | $ | 1,011 | $ | 1,166 | $ | 1,277 | $ | 1,358 | |||||||||||||||||
Allowance for loan losses on FDIC covered loans | 17 | 23 | 25 | - | - | ||||||||||||||||||||||
Total allowance for loan losses | $ | 826 | $ | 1,034 | $ | 1,191 | $ | 1,277 | $ | 1,358 | |||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||
Exhibit 9 |
||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||
(Dollars in millions) |
Average |
Interest |
Average |
|
Average |
Interest |
Average |
|||||||||||||||
Assets | ||||||||||||||||||||||
Loans held for investment: (9) | ||||||||||||||||||||||
Commercial and industrial | $ | 15,814 | $ | 159 | 4.05 | % | $ | 14,586 | $ | 168 | 4.61 | % | ||||||||||
Commercial mortgage | 7,726 | 84 | 4.31 | 8,180 | 86 | 4.20 | ||||||||||||||||
Construction | 1,116 | 11 | 4.03 | 2,145 | 15 | 2.91 | ||||||||||||||||
Lease financing | 775 | 8 | 3.99 | 641 | 6 | 3.88 | ||||||||||||||||
Residential mortgage | 18,324 | 221 | 4.83 | 16,984 | 226 | 5.34 | ||||||||||||||||
Home equity and other consumer loans | 3,782 | 40 | 4.23 | 3,919 | 43 | 4.41 | ||||||||||||||||
Total loans, excluding FDIC covered loans | 47,537 | 523 | 4.41 | 46,455 | 544 | 4.70 | ||||||||||||||||
FDIC covered loans | 1,312 | 44 | 13.33 | 1,372 | 26 | 7.54 | ||||||||||||||||
Total loans held for investment | 48,849 | 567 | 4.65 | 47,827 | 570 | 4.78 | ||||||||||||||||
Securities | 20,543 | 139 | 2.72 | 23,089 | 135 | 2.34 | ||||||||||||||||
Interest bearing deposits in banks | 2,086 | 1 | 0.24 | 5,920 | 4 | 0.25 | ||||||||||||||||
Federal funds sold and securities purchased under resale agreements |
71 | - | 0.10 | 392 | - | 0.15 | ||||||||||||||||
Trading account assets | 137 | 1 | 0.65 | 184 | 1 | 1.33 | ||||||||||||||||
Other earning assets | 23 | - | 2.18 | - | - | - | ||||||||||||||||
Total earning assets | 71,709 | 708 | 3.95 | 77,412 | 710 | 3.67 | ||||||||||||||||
Allowance for loan losses | (992 | ) | (1,459 | ) | ||||||||||||||||||
Cash and due from banks | 1,208 | 1,202 | ||||||||||||||||||||
Premises and equipment, net | 692 | 672 | ||||||||||||||||||||
Other assets | 7,717 | 7,684 | ||||||||||||||||||||
Total assets | $ | 80,334 | $ | 85,511 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Transaction and money market accounts | $ | 23,667 | 14 | 0.24 | $ | 37,608 | 48 | 0.51 | ||||||||||||||
Savings and consumer time | 7,898 | 14 | 0.71 | 7,421 | 15 | 0.83 | ||||||||||||||||
Large time | 8,811 | 25 | 1.16 | 8,265 | 15 | 0.73 | ||||||||||||||||
Total interest bearing deposits | 40,376 | 53 | 0.53 | 53,294 | 78 | 0.59 | ||||||||||||||||
Commercial paper and other short-term borrowings (10) | 3,113 | 2 | 0.23 | 1,394 | 2 | 0.43 | ||||||||||||||||
Long-term debt | 6,349 | 36 | 2.22 | 4,732 | 27 | 2.33 | ||||||||||||||||
Total borrowed funds | 9,462 | 38 | 1.57 | 6,126 | 29 | 1.90 | ||||||||||||||||
Total interest bearing liabilities | 49,838 | 91 | 0.73 | 59,420 | 107 | 0.73 | ||||||||||||||||
Noninterest bearing deposits | 17,957 | 14,810 | ||||||||||||||||||||
Other liabilities | 1,900 | 1,368 | ||||||||||||||||||||
Total liabilities | 69,695 | 75,598 | ||||||||||||||||||||
Equity | ||||||||||||||||||||||
UNBC Stockholder's equity | 10,366 | 9,631 | ||||||||||||||||||||
Noncontrolling interests | 273 | 282 | ||||||||||||||||||||
Total equity | 10,639 | 9,913 | ||||||||||||||||||||
Total liabilities and equity | $ | 80,334 | $ | 85,511 | ||||||||||||||||||
Net interest income/spread (taxable-equivalent basis) |
617 | 3.22 | % | 603 | 2.94 | % | ||||||||||||||||
Impact of noninterest bearing deposits | 0.19 | 0.15 | ||||||||||||||||||||
Impact of other noninterest bearing sources | 0.03 | 0.02 | ||||||||||||||||||||
Net interest margin | 3.44 | 3.11 | ||||||||||||||||||||
Less: taxable-equivalent adjustment | 3 | 2 | ||||||||||||||||||||
Net interest income | $ | 614 | $ | 601 | ||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||
Exhibit 10 |
||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
June 30, 2011 | March 31, 2011 | |||||||||||||||||||||
(Dollars in millions) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||||
Assets | ||||||||||||||||||||||
Loans held for investment: (9) | ||||||||||||||||||||||
Commercial and industrial | $ | 15,814 | $ | 159 | 4.05 | % | $ | 15,325 | $ | 157 | 4.13 | % | ||||||||||
Commercial mortgage | 7,726 | 84 | 4.31 | 7,778 | 85 | 4.38 | ||||||||||||||||
Construction | 1,116 | 11 | 4.03 | 1,341 | 12 | 3.48 | ||||||||||||||||
Lease financing | 775 | 8 | 3.99 | 776 | 8 | 4.33 | ||||||||||||||||
Residential mortgage | 18,324 | 221 | 4.83 | 17,794 | 220 | 4.94 | ||||||||||||||||
Home equity and other consumer loans | 3,782 | 40 | 4.23 | 3,823 | 40 | 4.29 | ||||||||||||||||
Total loans, excluding FDIC covered loans | 47,537 | 523 | 4.41 | 46,837 | 522 | 4.48 | ||||||||||||||||
FDIC covered loans | 1,312 | 44 | 13.33 | 1,446 | 39 | 10.89 | ||||||||||||||||
Total loans held for investment | 48,849 | 567 | 4.65 | 48,283 | 561 | 4.67 | ||||||||||||||||
Securities | 20,543 | 139 | 2.72 | 21,601 | 143 | 2.64 | ||||||||||||||||
Interest bearing deposits in banks | 2,086 | 1 | 0.24 | 1,200 | 1 | 0.25 | ||||||||||||||||
Federal funds sold and securities purchased under resale agreements |
71 | - | 0.10 |
96 |
- | 0.18 | ||||||||||||||||
Trading account assets | 137 | 1 | 0.65 | 150 | - | 1.19 | ||||||||||||||||
Other earning assets | 23 | - | 2.18 | 21 | - | 3.49 | ||||||||||||||||
Total earning assets | 71,709 | 708 | 3.95 | 71,351 | 705 | 3.97 | ||||||||||||||||
Allowance for loan losses | (992 | ) | (1,182 | ) | ||||||||||||||||||
Cash and due from banks | 1,208 | 1,246 | ||||||||||||||||||||
Premises and equipment, net | 692 | 712 | ||||||||||||||||||||
Other assets | 7,717 | 7,929 | ||||||||||||||||||||
Total assets | $ | 80,334 | $ | 80,056 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Transaction and money market accounts | $ | 23,667 | 14 | 0.24 | $ | 25,489 | 15 | 0.25 | ||||||||||||||
Savings and consumer time | 7,898 | 14 | 0.71 | 7,857 | 14 | 0.71 | ||||||||||||||||
Large time | 8,811 | 25 | 1.16 | 8,987 | 24 | 1.03 | ||||||||||||||||
Total interest bearing deposits | 40,376 | 53 | 0.53 | 42,333 | 53 | 0.50 | ||||||||||||||||
Commercial paper and other short-term borrowings (10) | 3,113 | 2 | 0.23 | 2,435 | 1 | 0.27 | ||||||||||||||||
Long-term debt | 6,349 | 36 | 2.22 | 5,902 | 31 | 2.16 | ||||||||||||||||
Total borrowed funds | 9,462 | 38 | 1.57 | 8,337 | 32 | 1.61 | ||||||||||||||||
Total interest bearing liabilities | 49,838 | 91 | 0.73 | 50,670 | 85 | 0.68 | ||||||||||||||||
Noninterest bearing deposits | 17,957 | 17,138 | ||||||||||||||||||||
Other liabilities | 1,900 | 1,815 | ||||||||||||||||||||
Total liabilities | 69,695 | 69,623 | ||||||||||||||||||||
Equity | ||||||||||||||||||||||
UNBC Stockholder's equity | 10,366 | 10,167 | ||||||||||||||||||||
Noncontrolling interests | 273 | 266 | ||||||||||||||||||||
Total equity | 10,639 | 10,433 | ||||||||||||||||||||
Total liabilities and equity | $ | 80,334 | $ | 80,056 | ||||||||||||||||||
Net interest income/spread (taxable-equivalent basis) |
617 | 3.22 | % | 620 | 3.29 | % | ||||||||||||||||
Impact of noninterest bearing deposits | 0.19 | 0.17 | ||||||||||||||||||||
Impact of other noninterest bearing sources | 0.03 | 0.03 | ||||||||||||||||||||
Net interest margin | 3.44 | 3.49 | ||||||||||||||||||||
Less: taxable-equivalent adjustment | 3 | 2 | ||||||||||||||||||||
Net interest income | $ | 614 | $ | 618 | ||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||||||||||||||||||||||
Net Interest Income (Unaudited) | ||||||||||||||||||||||
Exhibit 11 |
||||||||||||||||||||||
For the Six Months Ended | ||||||||||||||||||||||
June 30, 2011 |
June 30, 2010 |
|||||||||||||||||||||
(Dollars in millions) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||||
Assets | ||||||||||||||||||||||
Loans held for investment: (9) | ||||||||||||||||||||||
Commercial and industrial | $ | 15,571 | $ | 316 | 4.09 | % | $ | 14,770 | $ | 330 | 4.50 | % | ||||||||||
Commercial mortgage | 7,752 | 169 | 4.35 | 8,207 | 172 | 4.20 | ||||||||||||||||
Construction | 1,228 | 23 | 3.73 | 2,226 | 32 | 2.94 | ||||||||||||||||
Lease financing | 775 | 16 | 4.16 | 645 | 12 | 3.84 | ||||||||||||||||
Residential mortgage | 18,061 | 441 | 4.88 | 16,885 | 454 | 5.38 | ||||||||||||||||
Home equity and other consumer loans | 3,802 | 80 | 4.26 | 3,917 | 86 | 4.42 | ||||||||||||||||
Total loans, excluding FDIC covered loans | 47,189 | 1,045 | 4.44 | 46,650 | 1,086 | 4.67 | ||||||||||||||||
FDIC covered loans | 1,379 | 83 | 12.06 | 690 | 26 | 7.52 | ||||||||||||||||
Total loans held for investment | 48,568 | 1,128 | 4.66 | 47,340 | 1,112 | 4.72 | ||||||||||||||||
Securities | 21,069 | 282 | 2.68 | 23,316 | 279 | 2.39 | ||||||||||||||||
Interest bearing deposits in banks | 1,645 | 2 | 0.24 | 6,257 | 8 | 0.25 | ||||||||||||||||
Federal funds sold and securities purchased under resale agreements |
83 | - | 0.15 | 426 | - | 0.13 | ||||||||||||||||
Trading account assets | 144 | 1 | 0.93 | 196 | 2 | 1.52 | ||||||||||||||||
Other earning assets | 22 | - | 2.81 | - | - | - | ||||||||||||||||
Total earning assets | 71,531 | 1,413 | 3.96 | 77,535 | 1,401 | 3.62 | ||||||||||||||||
Allowance for loan losses | (1,087 | ) | (1,433 | ) | ||||||||||||||||||
Cash and due from banks | 1,226 | 1,204 | ||||||||||||||||||||
Premises and equipment, net | 702 | 673 | ||||||||||||||||||||
Other assets | 7,823 | 7,183 | ||||||||||||||||||||
Total assets | $ | 80,195 | $ | 85,162 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Transaction and money market accounts | $ | 24,573 | 29 | 0.24 | $ | 38,729 | 111 | 0.58 | ||||||||||||||
Savings and consumer time | 7,878 | 28 | 0.71 | 6,700 | 27 | 0.82 | ||||||||||||||||
Large time | 8,898 | 49 | 1.10 | 7,945 | 26 | 0.65 | ||||||||||||||||
Total interest bearing deposits | 41,349 | 106 | 0.52 | 53,374 | 164 | 0.62 | ||||||||||||||||
Commercial paper and other short-term borrowings (10) | 2,776 | 3 | 0.25 | 1,445 | 3 | 0.42 | ||||||||||||||||
Long-term debt | 6,127 | 67 | 2.19 | 4,653 | 54 | 2.34 | ||||||||||||||||
Total borrowed funds | 8,903 | 70 | 1.59 | 6,098 | 57 | 1.88 | ||||||||||||||||
Total interest bearing liabilities | 50,252 | 176 | 0.70 | 59,472 | 221 | 0.75 | ||||||||||||||||
Noninterest bearing deposits | 17,550 | 14,598 | ||||||||||||||||||||
Other liabilities | 1,855 | 1,322 | ||||||||||||||||||||
Total liabilities | 69,657 | 75,392 | ||||||||||||||||||||
Equity | ||||||||||||||||||||||
UNBC Stockholder's equity | 10,268 | 9,582 | ||||||||||||||||||||
Noncontrolling interests | 270 | 188 | ||||||||||||||||||||
Total equity | 10,538 | 9,770 | ||||||||||||||||||||
Total liabilities and equity | $ | 80,195 | $ | 85,162 | ||||||||||||||||||
Net interest income/spread (taxable-equivalent basis) |
1,237 | 3.26 | % | 1,180 | 2.87 | % | ||||||||||||||||
Impact of noninterest bearing deposits | 0.18 | 0.15 | ||||||||||||||||||||
Impact of other noninterest bearing sources | 0.02 | 0.03 | ||||||||||||||||||||
Net interest margin | 3.46 | 3.05 | ||||||||||||||||||||
Less: taxable-equivalent adjustment | 5 | 5 | ||||||||||||||||||||
Net interest income | $ | 1,232 | $ | 1,175 | ||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||||||||||||||||||
Exhibit 12 |
|||||||||||||||||||||||||||||||||||||
The following table presents a reconciliation between certain Generally Accepted Accounting Principles (GAAP) amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios. |
|||||||||||||||||||||||||||||||||||||
|
As of and for the Three Months Ended |
|
For the Six Months Ended |
||||||||||||||||||||||||||||||||||
(Dollars in millions) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||||||||||||||||||
Net income attributable to UNBC | $ | 242 | $ | 235 | $ | 172 | $ | 170 | $ | 154 | $ | 477 | $ | 231 | |||||||||||||||||||||||
Net adjustments related to privatization transaction, net of tax | 6 | 3 | 7 | 8 | 9 | 9 | 21 | ||||||||||||||||||||||||||||||
Net income attributable to UNBC, excluding impact of privatization transaction |
$ | 248 | $ | 238 | $ | 179 | $ | 178 | $ | 163 | $ | 486 | $ | 252 | |||||||||||||||||||||||
Average total assets | $ | 80,334 | $ | 80,056 | $ | 80,182 | $ | 82,265 | $ | 85,511 | $ | 80,195 | $ | 85,162 | |||||||||||||||||||||||
Net adjustments related to privatization transaction | 2,459 | 2,473 | 2,488 | 2,509 | 2,529 | 2,466 | 2,538 | ||||||||||||||||||||||||||||||
Average total assets, excluding impact of privatization transaction | $ | 77,875 | $ | 77,583 | $ | 77,694 | $ | 79,756 | $ | 82,982 | $ | 77,729 | $ | 82,624 | |||||||||||||||||||||||
Return on average assets (2) | 1.21 | % | 1.19 | % | 0.85 | % | 0.82 | % | 0.72 | % | 1.20 | % | 0.55 | % | |||||||||||||||||||||||
Return on average assets, excluding impact of privatization transaction (2) (11) | 1.28 | 1.24 | 0.92 | 0.89 | 0.78 | 1.26 | 0.61 | ||||||||||||||||||||||||||||||
Average UNBC stockholder's equity | $ | 10,366 | $ | 10,167 | $ | 10,034 | $ | 9,913 | $ | 9,631 | $ | 10,268 | $ | 9,582 | |||||||||||||||||||||||
Net adjustments related to privatization transaction | 2,390 | 2,396 | 2,401 | 2,405 | 2,409 | 2,393 | 2,411 | ||||||||||||||||||||||||||||||
Average UNBC stockholder's equity, excluding impact of privatization transaction |
$ | 7,976 | $ | 7,771 | $ | 7,633 | $ | 7,508 | $ | 7,222 | $ | 7,875 | $ | 7,171 | |||||||||||||||||||||||
Return on average UNBC stockholder's equity (2) | 9.36 | % | 9.38 | % | 6.81 | % | 6.80 | % | 6.40 | % | 9.37 | % | 4.86 | % | |||||||||||||||||||||||
Return on average UNBC stockholder's equity, excluding impact of privatization transaction (2) (11) |
12.45 | 12.41 | 9.32 | 9.43 | 9.01 | 12.43 | 7.08 | ||||||||||||||||||||||||||||||
Noninterest expense | $ | 578 | $ | 615 | $ | 701 | $ | 562 | $ | 584 | $ | 1,193 | $ | 1,109 | |||||||||||||||||||||||
Less: Foreclosed asset expense | 2 | 3 | 4 | 6 | 1 | 5 | 1 | ||||||||||||||||||||||||||||||
Less: (Reversal of) provision for losses on off-balance sheet commitments | (18 | ) | (13 | ) | (2 | ) | (8 | ) | 1 | (31 | ) | (4 | ) | ||||||||||||||||||||||||
Less: Low income housing credit investment amortization expense | 18 | 13 | 19 | 13 | 14 | 31 | 28 | ||||||||||||||||||||||||||||||
Less: Expenses of the consolidated VIEs | 6 | 6 | 15 | 6 | 6 | 12 | 11 | ||||||||||||||||||||||||||||||
Less: Merger costs related to acquisitions | 10 | 13 | 9 | 11 | 13 | 23 | 13 | ||||||||||||||||||||||||||||||
Less: Asset impairment charge | - | - | 30 | - | - | - | - | ||||||||||||||||||||||||||||||
Net noninterest expense before privatization adjustments (a) | $ | 560 | $ | 593 | $ | 626 | $ | 534 | $ | 549 | $ | 1,153 | $ | 1,060 | |||||||||||||||||||||||
Net adjustments related to privatization transaction | 25 | 26 | 32 | 33 | 33 | 51 | 72 | ||||||||||||||||||||||||||||||
Net noninterest expense, excluding impact of privatization transaction (b) | $ | 535 | $ | 567 | $ | 594 | $ | 501 | $ | 516 | $ | 1,102 | $ | 988 | |||||||||||||||||||||||
Total revenue | $ | 854 | $ | 858 | $ | 882 | $ | 836 | $ | 845 | $ | 1,712 | $ | 1,629 | |||||||||||||||||||||||
Add: Net interest income taxable-equivalent adjustment | 3 | 2 | 3 | 2 | 2 | 5 | 5 | ||||||||||||||||||||||||||||||
Total revenue, including taxable-equivalent adjustment (c) | 857 | 860 | 885 | 838 | 847 | 1,717 | 1,634 | ||||||||||||||||||||||||||||||
Accretion related to privatization-related fair value adjustments | 16 | 21 | 21 | 18 | 19 | 37 | 38 | ||||||||||||||||||||||||||||||
Total revenue, excluding impact of privatization transaction (d) | $ | 841 | $ | 839 | $ | 864 | $ | 820 | $ | 828 | $ | 1,680 | $ | 1,596 | |||||||||||||||||||||||
Core efficiency ratio (a)/(c) (4) | 65.53 | % | 68.80 | % | 70.88 | % | 63.69 | % | 64.86 | % | 67.17 | % | 64.92 | % | |||||||||||||||||||||||
Core efficiency ratio, excluding impact of privatization transaction (b)/(d) (11) | 63.74 | 67.47 | 68.83 | 61.13 | 62.39 | 65.60 | 61.97 | ||||||||||||||||||||||||||||||
Total UNBC stockholder's equity | $ | 10,667 | $ | 10,355 | $ | 10,125 | $ | 10,134 | $ | 9,942 | |||||||||||||||||||||||||||
Less: Goodwill | 2,447 | 2,447 | 2,456 | 2,456 | 2,456 | ||||||||||||||||||||||||||||||||
Less: Intangible assets | 407 | 432 | 457 | 487 | 517 | ||||||||||||||||||||||||||||||||
Less: Deferred tax liabilities related to goodwill and intangible assets | (149 | ) | (159 | ) | (168 | ) | (180 | ) | (192 | ) | |||||||||||||||||||||||||||
Tangible common equity (e) | $ | 7,962 | $ | 7,635 | $ | 7,380 | $ | 7,371 | $ | 7,161 | |||||||||||||||||||||||||||
Tier 1 capital, determined in accordance with regulatory requirements | $ | 8,535 | $ | 8,280 | $ | 8,029 | $ | 7,861 | $ | 7,682 | |||||||||||||||||||||||||||
Less: Trust preferred securities | - | - | 13 | 13 | 13 | ||||||||||||||||||||||||||||||||
Tier 1 common equity (f) | $ | 8,535 | $ | 8,280 | $ | 8,016 | $ | 7,848 | $ | 7,669 | |||||||||||||||||||||||||||
Total assets | $ | 80,093 | $ | 80,642 | $ | 79,097 | $ | 79,840 | $ | 84,310 | |||||||||||||||||||||||||||
Less: Goodwill | 2,447 | 2,447 | 2,456 | 2,456 | 2,456 | ||||||||||||||||||||||||||||||||
Less: Intangible assets | 407 | 432 | 457 | 487 | 517 | ||||||||||||||||||||||||||||||||
Less: Deferred tax liabilities related to goodwill and intangible assets | (149 | ) | (159 | ) | (168 | ) | (180 | ) | (159 | ) | |||||||||||||||||||||||||||
Tangible assets (g) | $ | 77,388 | $ | 77,922 | $ | 76,352 | $ | 77,077 | $ | 81,496 | |||||||||||||||||||||||||||
Risk-weighted assets, determined in accordance with regulatory requirements (h) (7) | $ | 65,274 | $ | 64,467 | $ | 64,516 | $ | 64,080 | $ | 64,301 | |||||||||||||||||||||||||||
Tangible common equity ratio (e)/(g) (5) | 10.29 | % | 9.80 | % | 9.67 | % | 9.56 | % | 8.79 | % | |||||||||||||||||||||||||||
Tier 1 common capital ratio (f)/(h) (6) | 13.08 | 12.84 | 12.42 | 12.25 | 11.93 | ||||||||||||||||||||||||||||||||
Refer to Exhibit 13 for footnote explanations. |
UnionBanCal Corporation and Subsidiaries | ||
Footnotes | ||
Exhibit 13 |
||
(1) | Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent. | |
(2) | Annualized. | |
(3) | Core deposits consist of total deposits, excluding brokered deposits and time deposits of $100,000 and over. | |
(4) | The core efficiency ratio, a non-GAAP financial measure, is net noninterest expense (noninterest expense excluding foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated VIEs, merger costs related to the acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank and asset impairment charges) as a percentage of total revenue (net interest income (taxable-equivalent basis) and noninterest income). Management discloses the core efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our core activities. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(5) | The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology of determining tangible common equity may differ among companies. The tangible common equity ratio has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(6) | The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. All of the trust preferred securities were paid off during the quarter ended March 31, 2011. The Tier 1 common capital ratio, a non-GAAP financial measure, has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(7) | Estimated as of June 30, 2011. | |
(8) | The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments. | |
(9) | Average balances on loans outstanding include all nonperforming loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield. | |
(10) | Includes interest bearing trading liabilities. | |
(11) | These ratios exclude the impact of the privatization transaction. Management believes that these ratios, which exclude the push-down accounting effects of the privatization transaction, provide useful supplemental information, which is important to a proper understanding of the Company's core business results. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures. | |
(12) | These ratios exclude the impact of the FDIC covered loans, the related allowance for loan losses and FDIC covered OREO, which are covered under loss share agreements between Union Bank, N.A. and the Federal Deposit Insurance Corporation. Such agreements are related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank. Management believes the exclusion of FDIC covered loans and FDIC covered OREO in certain asset quality ratios that include nonperforming loans, nonperforming assets, total loans held for investment and the allowance for loan losses or credit losses in the numerator or denominator provides a better perspective into underlying asset quality trends. | |
(13) | Excludes loans totaling $251 million, $279 million, $312 million, $297 million and $255 million that are 90 days or more past due and still accruing at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, which consisted of FDIC covered loans accounted for in accordance with the accounting standards for purchased credit impaired loans. | |
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CONTACT:
UnionBanCal Corporation
Thomas Taggart, 415-765-2249
Corporate
Communications
Michelle Crandall, 415-765-2780
Investor Relations