SAN FRANCISCO--(BUSINESS WIRE)--January 27, 2012--UnionBanCal Corporation (the Company or UB), parent company of San Francisco-based Union Bank, N.A., today reported fourth quarter 2011 results. Net income for fourth quarter was $129 million, down from $172 million for both the prior quarter and the year-ago quarter. The decline in net income compared with the prior quarter was primarily due to higher provision for credit losses as loan growth accelerated and higher noninterest expense.

Effective October 1, 2011, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) transferred its trust company, The Bank of Tokyo-Mitsubishi UFJ Trust Company (BTMUT), to the Company. This transaction increased assets by over $900 million and Tier 1 common capital by over $700 million.

For fourth quarter 2011, total revenue (net interest income plus noninterest income) was $791 million, flat compared with the prior quarter. Net interest income increased 6 percent, and noninterest income decreased 18 percent. The net interest margin was 3.29 percent.

Net interest income for fourth quarter 2011 was $640 million, up $34 million, or 6 percent, compared with third quarter 2011. The increase in net interest income was primarily due to growth in average earning assets, particularly securities and total loans (excluding FDIC covered loans). The net interest margin declined 2 basis points compared with third quarter 2011, primarily due to lower yields on securities, partially offset by a decline in low-yielding interest bearing deposits in banks.

Average total loans, excluding FDIC covered loans, increased $2.3 billion, or 5 percent, primarily due to growth in commercial and industrial loans, commercial mortgage loans and residential mortgage loans. Average FDIC covered loans decreased $152 million, or 13 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $1.3 billion, or 7 percent, primarily due to growth in commercial deposits. Average interest bearing deposits increased $2 billion, or 5 percent, primarily reflecting growth in money market accounts and time deposits.

Compared with fourth quarter 2010, total revenue decreased 10 percent, with net interest income up 1 percent and noninterest income down 40 percent. Average total loans, excluding FDIC covered loans, increased $5 billion, or 11 percent, primarily due to growth in commercial and industrial loans, commercial mortgage loans and residential mortgage loans. Average FDIC covered loans decreased $597 million, or 37 percent, due to expected runoff of the portfolio. Average noninterest bearing deposits increased $3.4 billion, or 21 percent. Average interest bearing deposits decreased $2.3 billion, or 5 percent, primarily due to planned deposit runoff resulting from targeted rate reductions. Net interest income increased $9 million compared with the year-ago quarter, primarily due to overall loan growth, largely offset by a decrease in the net interest margin. The net interest margin declined 24 basis points from the year-ago quarter, primarily due to declining yields on loans (excluding FDIC covered loans) and securities, and a higher level of low-yielding interest bearing deposits in banks.

For fourth quarter 2011, noninterest income was $151 million, down $34 million, or 18 percent, compared with prior quarter. The decrease was primarily due to lower card processing fees, net, which declined due to lower per-transaction fees charged; lower merchant banking fees, which declined due to fewer transactions completed; and lower other noninterest income. Other noninterest income decreased primarily due to a loss on the sale of private capital investments in fourth quarter 2011 and accretion adjustments to the indemnification asset associated with FDIC covered loans.

Noninterest income decreased $100 million, or 40 percent, compared with fourth quarter 2010, primarily due to lower gains on the sale of securities and lower other noninterest income. Other noninterest income declined primarily due to a loss on the sale of private capital investments and an accretion adjustment to the indemnification asset associated with FDIC covered loans, both recorded in fourth quarter 2011.

Noninterest expense for fourth quarter 2011 was $619 million, up $16 million, or 3 percent, compared with third quarter 2011. Intangible asset amortization expense increased $7 million, primarily due to a write-off of intangible assets associated with the privatization of the Company in 2008. The provision for losses on off-balance sheet commitments was $2 million, compared with zero in third quarter 2011.

Noninterest expense for fourth quarter 2011 decreased $82 million, or 12 percent, compared with fourth quarter 2010. The decrease was primarily due to lower regulatory assessments expenses, which resulted from a reduction in assessments for deposit insurance, and lower other noninterest expense. Other noninterest expense declined primarily due to certain reserves for contingencies and an asset impairment charge, all recorded in fourth quarter 2010. The provision for losses on off-balance sheet commitments was $2 million, compared with a benefit of $2 million in fourth quarter 2010.

The effective tax rate for fourth quarter 2011 was 24.7 percent, compared with an effective tax rate of 17.0 percent for third quarter 2011. The increase in the effective tax rate was primarily due to non-recurring income tax benefits recorded in third quarter related to a change in estimate to the valuation of FDIC covered assets.

For full year 2011, net income was $778 million, compared with net income of $573 million for full year 2010. The $205 million increase in net income was primarily due to the after-tax effect of a $399 million decrease in total provision for credit losses.

Total revenue for full year 2011 was $3.3 billion, a decrease of $53 million, or 2 percent, compared with 2010. Net interest income increased $54 million, or 2 percent. Noninterest income decreased $107 million, or 12 percent, primarily due to lower gains on the sale of securities and accretion adjustments to the indemnification asset associated with FDIC covered loans. Noninterest expense increased $43 million, or 2 percent, primarily due to a $155 million increase in salaries and employee benefits expense. The increase in salaries and employee benefits expense was partially offset by a $57 million decrease in other noninterest expense, primarily due to certain reserves for contingencies and an asset impairment charge, all recorded in 2010, and a $47 million decrease in regulatory assessments expense, primarily due to a reduction in assessments for deposit insurance.

At December 31, 2011, the Company had total assets of $89.7 billion, up $5.7 billion, or 7 percent, compared with September 30, 2011, and up $10.6 billion, or 13 percent, compared with December 31, 2010.

At December 31, 2011, total deposits were $64.4 billion, up $4 billion, or 7 percent, compared with September 30, 2011, and up $4.5 billion, or 7 percent, compared with December 31, 2010. Core deposits at December 31, 2011, were $52.8 billion, up $2.1 billion, or 4 percent, compared with September 30, 2011, and up $2.7 billion, or 5 percent, compared with December 31, 2010. At December 31, 2011, the Company’s loan-to-deposit ratio was 83 percent, down from 84 percent at September 30, 2011, due to deposits growing faster than loans, and up from 80 percent at December 31, 2010, due to a combination of loan growth and deposit growth.

The total provision for credit losses was $9 million for fourth quarter 2011, compared with a benefit of $13 million for third quarter 2011, primarily due to organic growth in the existing loan portfolio. Nonperforming assets, excluding FDIC covered assets, decreased $72 million, or 10 percent, compared with prior quarter, primarily due to loan repayments and charge-offs. Net charge-offs decreased $16 million, or 36 percent, compared with third quarter 2011, primarily due to lower commercial loan charge-offs and higher commercial mortgage loan recoveries.

Excluding FDIC covered assets, nonperforming assets were $618 million, or 0.70 percent of total assets, at December 31, 2011, compared with $690 million, or 0.83 percent of total assets, at September 30, 2011, and $890 million, or 1.15 percent of total assets, at December 31, 2010.

Excluding FDIC covered assets, net charge-offs for fourth quarter 2011 were $29 million, down from $43 million for third quarter 2011. Excluding FDIC covered assets, net charge-offs to average total loans for fourth quarter 2011 were 0.21 percent annualized, down from 0.36 percent annualized for third quarter 2011. For fourth quarter 2010, excluding FDIC covered assets, net charge-offs were $64 million, or 0.54 percent annualized of average total loans.

The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In fourth quarter 2011, the provision for loan losses was $7 million and the provision for losses on off-balance sheet commitments was $2 million.

The allowance for credit losses as a percent of total loans, excluding FDIC covered loans, was 1.67 percent at December 31, 2011, compared with 1.77 percent at September 30, 2011, and 2.85 percent at December 31, 2010. The allowance for credit losses as a percent of nonaccrual loans, excluding FDIC covered loans, was 149 percent at December 31, 2011, compared with 132 percent at September 30, 2011, and 156 percent at December 31, 2010.

Total stockholder’s equity was $11.6 billion and tangible common equity was $8.9 billion at December 31, 2011. The Company’s tangible common equity ratio was 10.20 percent at December 31, 2011, up 10 basis points from 10.10 percent at September 30, 2011, and up 53 basis points from 9.67 percent at December 31, 2010. The preliminary Basel I Tier 1 and Tier 1 common capital ratios at December 31, 2011, were in excess of 13 percent. Additionally, the preliminary Basel I Total risk-based capital ratio at December 31, 2011, was in excess of 15 percent.

This press release contains certain references to financial measures identified as excluding privatization transaction impact, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, productivity initiative costs, low income housing credit investment amortization expense, expenses of the consolidated variable interest entities, merger costs related to acquisitions, or asset impairment charges, which are adjustments from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP in that they exclude unusual or non-recurring charges, losses or credits. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information which is important to a proper understanding of the Company’s core business results. This press release also includes additional capital ratios (the tangible common equity and Basel I Tier 1 common capital ratios) to facilitate the understanding of the Company’s capital structure and for use in assessing and comparing the quality and composition of UnionBanCal’s capital structure to other financial institutions. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.

Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $89.7 billion at December 31, 2011. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 414 branches in California, Washington, Oregon, Texas and New York, as well as two international offices, on December 31, 2011. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.


UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 1

																				Percent Change to
	As of and for the Three Months Ended																			December 31, 2011 from
	December 31,			September 30,				June 30,				March 31,				December 31,				September 30,			December 31,
(Dollars in millions)	2011			2011				2011				2011				2010				2011			2010
Results of operations:
Net interest income	$	640		$	606			$	614			$	618			$	631			6		%	1		%
Noninterest income		151			185				240				240				251			(18	)		(40	)
Total revenue		791			791				854				858				882			-			(10	)
Noninterest expense		619			603				578				615				701			3			(12	)
Pre-tax, pre-provision income		172			188				276				243				181			(9	)		(5	)
(Reversal of) provision for loan losses		7			(13	)			(94	)			(102	)			(40	)		(154	)		nm
Income before income taxes and including noncontrolling interests		165			201				370				345				221			(18	)		(25	)
Income tax expense		40			33				131				114				58			21			(31	)
Net income including noncontrolling interests		125			168				239				231				163			(26	)		(23	)
Deduct: Net loss from noncontrolling interests		4			4				3				4				9			-			(56	)
Net income attributable to
UnionBanCal Corporation (UNBC)	$	129		$	172			$	242			$	235			$	172			(25	)		(25	)

Balance sheet (end of period):
Total assets	$	89,676		$	84,013			$	80,093			$	80,642			$	79,097			7			13
Total securities		24,106			20,962				19,430				21,673				22,114			15			9
Total loans held for investment		53,540			50,998				48,967				48,105				48,094			5			11
Core deposits ⁽³⁾		52,840			50,720				48,156				49,433				50,100			4			5
Total deposits		64,420			60,454				57,181				58,677				59,954			7			7
Long-term debt		6,684			7,064				7,069				6,078				5,598			(5	)		19
UNBC stockholder's equity		11,562			10,900				10,667				10,355				10,125			6			14

Balance sheet (period average):
Total assets	$	87,079		$	82,197			$	80,334			$	80,056			$	80,182			6			9
Total securities		22,721			19,145				20,543				21,601				21,560			19			5
Total loans held for investment		52,365			50,214				48,849				48,283				47,952			4			9
Earning assets		78,007			73,303				71,709				71,351				71,517			6			9
Total deposits		62,848			59,580				58,333				59,471				61,728			5			2
UNBC stockholder's equity		11,646			10,708				10,366				10,167				10,034			9			16

Performance ratios:
Return on average assets ⁽²⁾		0.59	%		0.83		%		1.21		%		1.19		%		0.85		%
Return on average UNBC stockholder's equity ⁽²⁾		4.39			6.36				9.36				9.38				6.81
Return on average assets excluding the impact of privatization transaction ⁽²⁾		0.65			0.90				1.28				1.24				0.92
Return on average stockholder's equity excluding the impact of privatization transaction ⁽²⁾		5.97			8.65				12.45				12.41				9.32
Efficiency ratio⁽⁴⁾		78.27			76.21				67.77				71.62				79.52
Core Efficiency ratio⁽⁴⁾		69.12			66.12				63.17				67.04				68.83
Net interest margin ^{(1) (2)}		3.29			3.31				3.44				3.49				3.53

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.83	%		13.09		%		13.08		%		12.84		%		12.44		%
Total risk-based capital ratio ⁽⁷⁾		15.99			15.41				15.41				15.41				15.01
Leverage ratio ⁽⁷⁾		11.44			10.96				10.96				10.66				10.34
Tier 1 common capital ratio ^{(6) (7)}		13.83			13.09				13.08				12.84				12.42
Tangible common equity ratio ⁽⁵⁾		10.20			10.10				10.29				9.80				9.67

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 2

	As of and for the Years Ended							Percent Change to December 31, 2011 from
	December 31,				December 31,			December 31,
(Dollars in millions)	2011 ⁽¹⁾				2010 ⁽¹⁾			2010
Results of operations:
Net interest income	$	2,478			$	2,424			2		%
Noninterest income		816				923			(12	)
Total revenue		3,294				3,347			(2	)
Noninterest expense		2,415				2,372			2
Pre-tax, pre-provision income		879				975			(10	)
(Reversal of) provision for loan losses		(202	)			182			nm
Income before income taxes and including noncontrolling interests		1,081				793			36
Income tax expense		318				239			33
Net income including noncontrolling interests		763				554			38
Deduct: Net loss from noncontrolling interests		15				19			(21	)
Net income attributable to UNBC	$	778			$	573			36

Balance sheet (end of period):
Total assets	$	89,676			$	79,097			13
Total securities		24,106				22,114			9
Total loans held for investment		53,540				48,094			11
Core deposits ⁽³⁾		52,840				50,100			5
Total deposits		64,420				59,954			7
Long-term debt		6,684				5,598			19
UNBC stockholder's equity		11,562				10,125			14

Balance sheet (period average):
Total assets	$	82,435			$	83,176			(1	)
Total securities		21,001				22,664			(7	)
Total loans held for investment		49,939				47,687			5
Total earning assets		73,610				75,028			(2	)
Total deposits		60,066				65,604			(8	)
UNBC stockholder's equity		10,726				9,780			10

Performance ratios:
Return on average assets		0.94		%		0.69	%
Return on average UNBC stockholder's equity		7.25				5.86
Return on average assets excluding the impact of privatization transaction		1.01				0.76
Return on average stockholder's equity excluding the impact of privatization transaction		9.67				8.27
Efficiency ratio⁽⁴⁾		73.32				70.89
Core efficiency ratio ⁽⁴⁾		66.31				63.57
Net interest margin ⁽¹⁾		3.38				3.24

Capital ratios:
Tier 1 risk-based capital ratio ⁽⁷⁾		13.83		%		12.44	%
Total risk-based capital ratio ⁽⁷⁾		15.99				15.01
Leverage ratio ⁽⁷⁾		11.44				10.34
Tier 1 common capital ratio ^{(6) (7)}		13.83				12.42
Tangible common equity ratio ⁽⁵⁾		10.20				9.67

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Credit Quality (Unaudited)
Exhibit 3

																					Percent Change to
	As of and for the Three Months Ended																				December 31, 2011 from
	December 31,				September 30,				June 30,				March 31,				December 31,				September 30,			December 31,
(Dollars in millions)	2011				2011				2011				2011				2010				2011			2010

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	7			$	(13	)		$	(92	)		$	(102	)		$	(48	)		(154	)	%	nm		%
(Reversal of ) provision for FDIC covered loan losses not subject to FDIC indemnification		-				-				(2	)			-				8			-			(100	)
(Reversal of) provision for losses on off-balance sheet commitments		2				-				(18	)			(13	)			(2	)		100			(200	)
Total (reversal of) provision for credit losses	$	9			$	(13	)		$	(112	)		$	(115	)		$	(42	)		(169	)		nm
Net loans charged off	$	28			$	44			$	111			$	53			$	64			(36	)		(56	)
Nonperforming assets		782				870				865				1,032				1,142			(10	)		(32	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment		1.43		%		1.51		%		1.69		%		2.15		%		2.48		%
Nonaccrual loans		119.58				105.97				114.05				118.50				123.40
Allowance for credit losses to ⁽⁸⁾:
Total loans held for investment		1.68				1.76				1.96				2.46				2.81
Nonaccrual loans		140.46				124.09				132.19				135.61				140.23
Net loans charged off to average total loans held for investment ⁽²⁾		0.21				0.35				0.91				0.44				0.52
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)		1.46				1.70				1.76				2.14				2.37
Nonperforming assets to total assets		0.87				1.04				1.08				1.28				1.44
Nonaccrual loans to total loans held for investment		1.19				1.42				1.48				1.81				2.01

Excluding FDIC covered assets ⁽¹²⁾:
Allowance for loan losses to:
Total loans held for investment		1.42		%		1.51		%		1.70		%		2.17		%		2.50		%
Nonaccrual loans		126.26				112.28				124.09				129.10				137.32
Allowance for credit losses to ⁽⁸⁾:
Total loans held for investment		1.67				1.77				1.97				2.48				2.85
Nonaccrual loans		148.80				131.92				144.23				148.17				156.44
Net loans charged off to average total loans held for investment ⁽²⁾		0.21				0.36				0.92				0.46				0.54
Nonperforming assets to total loans held for investment and OREO		1.17				1.38				1.42				1.74				1.91
Nonperforming assets to total assets		0.70				0.83				0.86				1.03				1.15
Nonaccrual loans to total loans held for investment		1.12				1.34				1.37				1.68				1.82


									Percent Change to
	As of and for the Years Ended								December 31, 2011 from
	December 31,				December 31,				December 31,
(Dollars in millions)	2011				2010				2010

Credit Data:
(Reversal of) provision for loan losses, excluding FDIC covered loans	$	(200	)		$	174				nm	%
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		(2	)			8				(125	)
(Reversal of) provision for losses on off-balance sheet commitments		(29	)			(14	)			(107	)
Total (reversal of) provision for credit losses	$	(231	)		$	168				nm
Net loans charged off	$	236			$	366				(36	)
Nonperforming assets		782				1,142				(32	)

Credit Ratios:
Net loans charged off to average total loans held for investment		0.47		%		0.77		%
Nonperforming assets to total assets		0.87				1.44

Excluding FDIC covered assets ⁽¹²⁾:
Net loans charged off to average total loans held for investment		0.48		%		0.79		%
Nonperforming assets to total assets		0.70				1.15

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Exhibit 4

	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in millions)	2011			2011			2011			2011			2010
Interest Income
Loans	$	603		$	576		$	565		$	559		$	576
Securities		134			123			138			143			137
Other		2			3			2			1			1
Total interest income		739			702			705			703			714

Interest Expense
Deposits		57			53			53			53			56
Commercial paper and other short-term borrowings		1			2			2			1			-
Long-term debt		41			41			36			31			27
Total interest expense		99			96			91			85			83

Net Interest Income		640			606			614			618			631
(Reversal of) provision for loan losses		7			(13	)		(94	)		(102	)		(40	)
Net interest income after (reversal of) provision for loan losses		633			619			708			720			671

Noninterest Income
Service charges on deposit accounts		58			57			56			57			58
Trust and investment management fees		31			33			34			34			34
Trading account activities		38			27			28			33			33
Merchant banking fees		22			27			29			19			28
Securities gains, net		-			1			29			28			33
Brokerage commissions and fees		10			12			12			13			10
Card processing fees, net		4			11			12			10			10
Other		(12	)		17			40			46			45
Total noninterest income		151			185			240			240			251

Noninterest Expense
Salaries and employee benefits		347			348			346			344			338
Net occupancy and equipment		71			64			67			65			64
Professional and outside services		55			55			55			44			56
Intangible asset amortization		32			25			24			25			31
Regulatory assessments		15			14			19			21			26
(Reversal of) provision for losses on off-balance sheet commitments		2			-			(18	)		(13	)		(2	)
Other		97			97			85			129			188
Total noninterest expense		619			603			578			615			701

Income before income taxes and including noncontrolling interests		165			201			370			345			221
Income tax expense		40			33			131			114			58
Net Income including Noncontrolling Interests		125			168			239			231			163
Deduct: Net loss from noncontrolling interests		4			4			3			4			9
Net Income attributable to UNBC	$	129		$	172		$	242		$	235		$	172


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

	For the Years Ended
	December 31,			December 31,
(Dollars in millions)	2011			2010
Interest Income
Loans	$	2,303		$	2,266
Securities		538			547
Other		8			13
Total interest income		2,849			2,826

Interest Expense
Deposits		216			290
Commercial paper and other short-term borrowings		6			4
Long-term debt		149			108
Total interest expense		371			402

Net Interest Income		2,478			2,424
(Reversal of) provision for loan losses		(202	)		182
Net interest income after (reversal of) provision for loan losses		2,680			2,242

Noninterest Income
Service charges on deposit accounts		228			250
Trust and investment management fees		132			133
Trading account activities		126			111
Merchant banking fees		97			83
Securities gains, net		58			105
Brokerage commissions and fees		47			40
Card processing fees, net		37			41
Other		91			160
Total noninterest income		816			923

Noninterest Expense
Salaries and employee benefits		1,385			1,230
Net occupancy and equipment		267			252
Professional and outside services		209			199
Intangible asset amortization		106			124
Regulatory assessments		69			116
(Reversal of) provision for losses on off-balance sheet commitments		(29	)		(14	)
Other		408			465
Total noninterest expense		2,415			2,372

Income before income taxes and including noncontrolling interests		1,081			793
Income tax expense		318			239
Net Income including Noncontrolling Interests		763			554
Deduct: Net loss from noncontrolling interests		15			19
Net Income attributable to UNBC	$	778		$	573


UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheets
Exhibit 6

	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in millions except for per share amount)	2011			2011			2011			2011			2010
Assets
Cash and due from banks	$	1,419		$	1,277		$	1,233		$	1,247		$	946
Interest bearing deposits in banks (includes $8 at December 31, 2011, $7 at September 30, 2011, $24 at June 30, 2011, $23 at March 31, 2011 and $11 at December 31, 2010 related to consolidated variable interest entities (VIEs))		2,764			2,757			2,477			1,912			217
Federal funds sold and securities purchased under resale agreements		12			28			78			24			11
Total cash and cash equivalents		4,195			4,062			3,788			3,183			1,174
Trading account assets (includes $14 at December 31, 2011, $6 at September 30, 2011, $1 at June 30, 2011, $6 at March 31, 2011 and $43 at December 31, 2010 of assets pledged as collateral)		1,135			1,120			898			876			999
Securities available for sale (includes $340 at June 30, 2011, $308 at March 31, 2011 and $10 at December 31, 2010 of securities pledged as collateral)		22,833			19,633			18,098			20,334			20,791
Securities held to maturity (Fair value: December 31, 2011, $1,429; September 30, 2011, $1,474; June 30, 2011, $1,610; March 31, 2011, $1,646; and December 31, 2010, $1,560)		1,273			1,329			1,332			1,339			1,323
Loans held for investment:
Loans, excluding FDIC covered loans		52,591			49,904			47,718			46,715			46,584
FDIC covered loans		949			1,094			1,249			1,390			1,510
Total loans held for investment		53,540			50,998			48,967			48,105			48,094
Allowance for loan losses		(764	)		(768	)		(826	)		(1,034	)		(1,191	)
Loans held for investment, net		52,776			50,230			48,141			47,071			46,903
Premises and equipment, net		684			673			686			694			712
Intangible assets, net		360			383			407			432			457
Goodwill		2,457			2,447			2,447			2,447			2,456
FDIC indemnification asset		598			616			650			699			783
Other assets (includes $268 at December 31, 2011, $290 at September 30, 2011, $272 at June 30, 2011, $277 at March 31, 2011 and $283 at December 31, 2010 related to consolidated VIEs)		3,365			3,520			3,646			3,567			3,499
Total assets	$	89,676		$	84,013		$	80,093		$	80,642		$	79,097

Liabilities
Deposits:
Noninterest bearing	$	20,598		$	19,630		$	17,708		$	18,062		$	16,343
Interest bearing		43,822			40,824			39,473			40,615			43,611
Total deposits		64,420			60,454			57,181			58,677			59,954
Commercial paper and other short-term borrowings		3,683			2,455			2,838			3,260			1,356
Long-term debt (includes $8 at December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010 related to consolidated VIEs)		6,684			7,064			7,069			6,078			5,598
Trading account liabilities		1,040			946			730			696			774
Other liabilities (includes $1 at December 31, 2011, $3 at September 30, 2011, $2 at June 30, 2011, $2 at March 31, 2011 and $2 at December 31, 2010 related to consolidated VIEs)		2,019			1,925			1,338			1,303			1,024
Total liabilities		77,846			72,844			69,156			70,014			68,706


Equity
UNBC Stockholder's Equity:
Common stock, par value $1 per share:
Authorized 300,000,000 shares; 136,330,830 shares issued and outstanding as of December 31, 2011 and 136,330,829 shares issued and outstanding as of September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010		136			136			136			136			136
Additional paid-in capital		5,989			5,203			5,199			5,201			5,198
Retained earnings		6,246			6,117			5,945			5,703			5,468
Accumulated other comprehensive loss		(809	)		(556	)		(613	)		(685	)		(677	)
Total UNBC stockholder's equity		11,562			10,900			10,667			10,355			10,125
Noncontrolling interests		268			269			270			273			266
Total equity		11,830			11,169			10,937			10,628			10,391
Total liabilities and equity	$	89,676		$	84,013		$	80,093		$	80,642		$	79,097


UnionBanCal Corporation and Subsidiaries
Loans and Nonperforming Assets (Unaudited)
Exhibit 7

	December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars in millions)	2011		2011		2011		2011		2010

Loans held for investment (period end)
Loans held for investment, excluding FDIC covered loans:
Commercial and industrial	$	19,226	$	17,545	$	15,854	$	15,143	$	15,162
Commercial mortgage		8,175		7,927		7,729		7,749		7,816
Construction		870		966		1,055		1,153		1,460
Lease financing		965		693		701		773		757
Total commercial portfolio		29,236		27,131		25,339		24,818		25,195
Residential mortgage		19,625		19,043		18,610		18,110		17,531
Home equity and other consumer loans		3,730		3,730		3,769		3,787		3,858
Total consumer portfolio		23,355		22,773		22,379		21,897		21,389
Total loans held for investment, excluding FDIC covered loans		52,591		49,904		47,718		46,715		46,584
FDIC covered loans		949		1,094		1,249		1,390		1,510
Total loans held for investment	$	53,540	$	50,998	$	48,967	$	48,105	$	48,094

Nonperforming Assets (period end)
Nonaccrual loans:
Commercial and industrial	$	127	$	163	$	110	$	113	$	115
Commercial mortgage		139		206		230		265		329
Construction		16		16		47		71		140
Lease financing		-		-		-		71		-
Total commercial portfolio		282		385		387		520		584

Residential mortgage		285		259		242		241		243
Home equity and other consumer loans		24		25		23		22		22
Total consumer portfolio		309		284		265		263		265
Total nonaccrual loans, excluding FDIC covered loans		591		669		652		783		849
FDIC covered loans		47		56		72		90		116
Total nonaccrual loans		638		725		724		873		965

OREO		27		21		26		32		41
FDIC covered OREO		117		124		115		127		136

Total nonperforming assets	$	782	$	870	$	865	$	1,032	$	1,142

Total nonperforming assets, excluding FDIC covered assets	$	618	$	690	$	678	$	815	$	890

Loans 90 days or more past due and still accruing ⁽¹³⁾	$	2	$	3	$	2	$	3	$	2

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Allowances for Credit Losses (Unaudited)
Exhibit 8

	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in millions)	2011			2011			2011			2011			2010

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	768		$	826		$	1,034		$	1,191		$	1,277

(Reversal of) provision for loan losses, excluding FDIC covered loans		7			(13	)		(92	)		(102	)		(48	)
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		-			-			(2	)		-			8
Increase (decrease) in allowance covered by FDIC indemnification		-			-			(3	)		(2	)		17
Other ⁽¹⁴⁾		17			(1	)		-			-			1

Loans charged off:
Commercial and industrial		(7	)		(20	)		(11	)		(23	)		(18	)
Commercial mortgage		(14	)		(10	)		(14	)		(24	)		(51	)
Construction		-			-			(3	)		(1	)		(4	)
Lease financing		(14	)		(5	)		(71	)		-			-
Total commercial portfolio		(35	)		(35	)		(99	)		(48	)		(73	)
Residential mortgage		(9	)		(12	)		(13	)		(14	)		(8	)
Home equity and other consumer loans		(10	)		(8	)		(10	)		(11	)		(15	)
Total consumer portfolio		(19	)		(20	)		(23	)		(25	)		(23	)
FDIC covered loans		-			(2	)		(1	)		-			-
Total loans charged off		(54	)		(57	)		(123	)		(73	)		(96	)

Recoveries of loans previously charged off:
Commercial and industrial		8			5			8			7			19
Commercial mortgage		15			1			2			8			8
Construction		2			4			2			4			3
Total commercial portfolio		25			10			12			19			30

Residential mortgage		-			1			-			-			1
Home equity and other consumer loans		-			1			-			1			1
Total consumer portfolio		-			2			-			1			2

FDIC covered loans		1			1			-			-			-
Total recoveries of loans previously charged off		26			13			12			20			32
Net loans charged off		(28	)		(44	)		(111	)		(53	)		(64	)

Ending balance of allowance for loan losses		764			768			826			1,034			1,191
Allowance for losses on off-balance sheet commitments		133			131			131			150			162
Total allowance for credit losses	$	897		$	899		$	957		$	1,184		$	1,353

Components of allowance for loan losses:
Allowance for loan losses, excluding allowance on FDIC covered loans	$	747		$	751		$	809		$	1,011		$	1,166
Allowance for loan losses on FDIC covered loans		17			17			17			23			25
Total allowance for loan losses	$	764		$	768		$	826		$	1,034		$	1,191

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 9

	For the Three Months Ended
	December 31, 2011							September 30, 2011
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	18,268		$	174	3.77	%	$	16,947		$	160	3.76	%
Commercial mortgage		8,086			84	4.12			7,838			82	4.22
Construction		893			9	3.77			992			12	5.04
Lease financing		1,073			14	5.45			697			8	4.28
Residential mortgage		19,298			223	4.61			18,818			221	4.70
Home equity and other consumer loans		3,728			38	4.03			3,751			40	4.25
Total loans, excluding FDIC covered loans		51,346			542	4.20			49,043			523	4.26
FDIC covered loans		1,019			63	24.88			1,171			55	18.60
Total loans held for investment		52,365			605	4.60			50,214			578	4.60
Securities		22,721			134	2.36			19,145			123	2.56
Interest bearing deposits in banks		2,591			2	0.26			3,610			3	0.25
Federal funds sold and securities purchased under resale agreements		61			-	0.16			61			-	0.03
Trading account assets		141			-	0.65			166			-	0.68
Other earning assets		128			-	0.33			107			-	0.54
Total earning assets		78,007			741	3.79			73,303			704	3.83
Allowance for loan losses		(780	)						(785	)
Cash and due from banks		1,342							1,254
Premises and equipment, net		678							676
Other assets		7,832							7,749
Total assets	$	87,079						$	82,197
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	24,763			14	0.22		$	23,836			14	0.23
Savings		5,338			3	0.17			5,476			3	0.21
Time		12,863			40	1.23			11,634			36	1.28
Total interest bearing deposits		42,964			57	0.51			40,946			53	0.53
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,733			1	0.23			2,371			2	0.20
Long-term debt		6,977			41	2.35			7,066			41	2.31
Total borrowed funds		9,710			42	1.75			9,437			43	1.78
Total interest bearing liabilities		52,674			99	0.74			50,383			96	0.76
Noninterest bearing deposits		19,884							18,634
Other liabilities		2,606							2,203
Total liabilities		75,164							71,220
Equity
UNBC Stockholder's equity		11,646							10,708
Noncontrolling interests		269							269
Total equity		11,915							10,977
Total liabilities and equity	$	87,079						$	82,197

Net interest income/spread (taxable-equivalent basis)					642	3.05	%					608	3.07	%
Impact of noninterest bearing deposits						0.20							0.20
Impact of other noninterest bearing sources						0.04							0.04
Net interest margin						3.29							3.31
Less: taxable-equivalent adjustment					2							2
Net interest income				$	640						$	606


Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 10

	For the Three Months Ended
	December 31, 2011							December 31, 2010
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾⁽²⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	18,268		$	174	3.77	%	$	14,848		$	170	4.56	%
Commercial mortgage		8,086			84	4.12			7,851			84	4.29
Construction		893			9	3.77			1,724			18	4.13
Lease financing		1,073			14	5.45			641			5	2.89
Residential mortgage		19,298			223	4.61			17,400			222	5.11
Home equity and other consumer loans		3,728			38	4.03			3,872			43	4.36
Total loans, excluding FDIC covered loans		51,346			542	4.20			46,336			542	4.66
FDIC covered loans		1,019			63	24.88			1,616			37	9.03
Total loans held for investment		52,365			605	4.60			47,952			579	4.81
Securities		22,721			134	2.36			21,560			137	2.54
Interest bearing deposits in banks		2,591			2	0.26			1,653			1	0.26
Federal funds sold and securities purchased under resale agreements		61			-	0.16			174			-	0.19
Trading account assets		141			-	0.65			178			-	1.10
Other earning assets		128			-	0.33			-			-	-
Total earning assets		78,007			741	3.79			71,517			717	4.00
Allowance for loan losses		(780	)						(1,273	)
Cash and due from banks		1,342							1,271
Premises and equipment, net		678							682
Other assets		7,832							7,985
Total assets	$	87,079						$	80,182
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	24,763			14	0.22		$	28,697			21	0.30
Savings		5,338			3	0.17			4,533			3	0.22
Time		12,863			40	1.23			12,017			32	1.08
Total interest bearing deposits		42,964			57	0.51			45,247			56	0.50
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,733			1	0.23			1,246			-	0.30
Long-term debt		6,977			41	2.35			5,109			27	2.05
Total borrowed funds		9,710			42	1.75			6,355			27	1.71
Total interest bearing liabilities		52,674			99	0.74			51,602			83	0.65
Noninterest bearing deposits		19,884							16,481
Other liabilities		2,606							1,793
Total liabilities		75,164							69,876
Equity
UNBC Stockholder's equity		11,646							10,034
Noncontrolling interests		269							272
Total equity		11,915							10,306
Total liabilities and equity	$	87,079						$	80,182

Net interest income/spread (taxable-equivalent basis)					642	3.05	%					634	3.35	%
Impact of noninterest bearing deposits						0.20							0.16
Impact of other noninterest bearing sources						0.04							0.02
Net interest margin						3.29							3.53
Less: taxable-equivalent adjustment					2							3
Net interest income				$	640						$	631


Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 11

	For the Years Ended
	December 31, 2011							December 31, 2010
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽¹⁾		Rate ⁽¹⁾		Balance			Expense ⁽¹⁾		Rate ⁽¹⁾
Assets
Loans held for investment: ⁽⁹⁾
Commercial and industrial	$	16,598		$	650	3.92	%	$	14,754		$	676	4.58	%
Commercial mortgage		7,858			335	4.26			8,067			341	4.23
Construction		1,084			44	4.04			2,029			66	3.24
Lease financing		830			38	4.60			642			23	3.59
Residential mortgage		18,562			885	4.77			17,093			902	5.28
Home equity and other consumer loans		3,771			158	4.20			3,902			172	4.41
Total loans, excluding FDIC covered loans		48,703			2,110	4.33			46,487			2,180	4.69
FDIC covered loans		1,236			201	16.29			1,200			95	7.88
Total loans held for investment		49,939			2,311	4.63			47,687			2,275	4.77
Securities		21,001			539	2.57			22,664			548	2.42
Interest bearing deposits in banks		2,373			7	0.25			4,128			10	0.25
Federal funds sold and securities purchased under resale agreements		72			-	0.12			353			1	0.14
Trading account assets		149			1	0.80			196			2	1.31
Other earning assets		76			-	0.73			-			-	-
Total earning assets		73,610			2,858	3.88			75,028			2,836	3.78
Allowance for loan losses		(933	)						(1,378	)
Cash and due from banks		1,263							1,214
Premises and equipment, net		689							675
Other assets		7,806							7,637
Total assets	$	82,435						$	83,176
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	24,434			57	0.23		$	34,686			166	0.48
Savings		5,226			12	0.23			4,426			16	0.35
Time		11,994			147	1.22			11,209			108	0.97
Total interest bearing deposits		41,654			216	0.52			50,321			290	0.58
Commercial paper and other short-term borrowings ⁽¹⁰⁾		2,663			6	0.23			1,289			4	0.38
Long-term debt		6,578			149	2.27			4,736			108	2.28
Total borrowed funds		9,241			155	1.68			6,025			112	1.87
Total interest bearing liabilities		50,895			371	0.73			56,346			402	0.72
Noninterest bearing deposits		18,412							15,283
Other liabilities		2,133							1,535
Total liabilities		71,440							73,164
Equity
UNBC Stockholder's equity		10,726							9,780
Noncontrolling interests		269							232
Total equity		10,995							10,012
Total liabilities and equity	$	82,435						$	83,176

Net interest income/spread (taxable-equivalent basis)					2,487	3.15	%					2,434	3.06	%
Impact of noninterest bearing deposits						0.19							0.16
Impact of other noninterest bearing sources						0.04							0.02
Net interest margin						3.38							3.24
Less: taxable-equivalent adjustment					9							10
Net interest income				$	2,478						$	2,424


Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures (Unaudited)
Exhibit 12

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

	As of and for the Three Months Ended																				For the Years Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
(Dollars in millions)	2011				2011				2011				2011				2010				2011				2010

Net income attributable to UNBC	$	129			$	172			$	242			$	235			$	172			$	778			$	573
Net adjustments related to privatization transaction, net of tax		10				10				6				3				7				29				36
Net income attributable to UNBC, excluding impact of privatization transaction	$	139			$	182			$	248			$	238			$	179			$	807			$	609

Average total assets	$	87,079			$	82,197			$	80,334			$	80,056			$	80,182			$	82,435			$	83,176
Net adjustments related to privatization transaction		2,419				2,442				2,459				2,473				2,488				2,448				2,518
Average total assets, excluding impact of privatization transaction	$	84,660			$	79,755			$	77,875			$	77,583			$	77,694			$	79,987			$	80,658
Return on average assets ⁽²⁾		0.59		%		0.83		%		1.21		%		1.19		%		0.85		%		0.94		%		0.69		%
Return on average assets, excluding impact of privatization transaction ^{(2) (11)}		0.65				0.90				1.28				1.24				0.92				1.01				0.76

Average UNBC stockholder's equity	$	11,646			$	10,708			$	10,366			$	10,167			$	10,034			$	10,726			$	9,780
Net adjustments related to privatization transaction		2,380				2,385				2,390				2,396				2,401				2,388				2,407
Average UNBC stockholder's equity, excluding impact of privatization transaction	$	9,266			$	8,323			$	7,976			$	7,771			$	7,633			$	8,338			$	7,373
Return on average UNBC stockholder's equity ⁽²⁾		4.39		%		6.36		%		9.36		%		9.38		%		6.81		%		7.25		%		5.86		%
Return on average UNBC stockholder's equity, excluding impact of privatization transaction ^{(2) (11)}		5.97				8.65				12.45				12.41				9.32				9.67				8.27

Noninterest expense	$	619			$	603			$	578			$	615			$	701			$	2,415			$	2,372
Less: Foreclosed asset expense		3				4				2				3				4				12				11
Less: (Reversal of) provision for losses on off-balance sheet commitments		2				-				(18	)			(13	)			(2	)			(29	)			(14	)
Less: Productivity initiative costs		14				33				5				4				-				56				-
Less: Low income housing credit investment amortization expense		23				15				18				13				19				69				60
Less: Expenses of the consolidated VIEs		6				6				6				6				15				24				32
Less: Merger costs related to acquisitions		-				1				10				13				9				24				33
Less: Asset impairment charge		-				-				-				-				30				-				30
Net noninterest expense before privatization adjustments	$	571			$	544			$	555			$	589			$	626			$	2,259			$	2,220
Net adjustments related to privatization transaction		32				26				25				26				32				109				136
Net noninterest expense, excluding impact of privatization transaction (a)	$	539			$	518			$	530			$	563			$	594			$	2,150			$	2,084

Total revenue	$	791			$	791			$	854			$	858			$	882			$	3,294			$	3,347
Add: Net interest income taxable-equivalent adjustment		2				2				3				2				3				9				10
Total revenue, including taxable-equivalent adjustment		793				793				857				860				885				3,303				3,357
Accretion related to privatization-related fair value adjustments		15				10				16				21				21				62				77
Total revenue, excluding impact of privatization transaction (b)	$	778			$	783			$	841			$	839			$	864			$	3,241			$	3,280
Core efficiency ratio, excluding impact of privatization transaction (a)/(b) ⁽⁴⁾ ⁽¹¹⁾		69.12				66.12				63.17				67.04				68.83				66.31				63.57

Total UNBC stockholder's equity	$	11,562			$	10,900			$	10,667			$	10,355			$	10,125
Less: Goodwill		2,457				2,447				2,447				2,447				2,456
Less: Intangible assets		360				383				407				432				457
Less: Deferred tax liabilities related to goodwill and intangible assets		(130	)			(140	)			(149	)			(159	)			(168	)
Tangible common equity (c)	$	8,875			$	8,210			$	7,962			$	7,635			$	7,380
Tier 1 capital, determined in accordance with regulatory requirements	$	9,642			$	8,724			$	8,535			$	8,280			$	8,029
Less: Trust preferred securities		-				-				-				-				13
Tier 1 common equity (d)	$	9,642			$	8,724			$	8,535			$	8,280			$	8,016
Total assets	$	89,676			$	84,013			$	80,093			$	80,642			$	79,097
Less: Goodwill		2,457				2,447				2,447				2,447				2,456
Less: Intangible assets		360				383				407				432				457
Less: Deferred tax liabilities related to goodwill and intangible assets		(130	)			(140	)			(149	)			(159	)			(168	)
Tangible assets (e)	$	86,989			$	81,323			$	77,388			$	77,922			$	76,352
Risk-weighted assets, determined in accordance with regulatory requirements (f) ⁽⁷⁾	$	69,700			$	66,628			$	65,274			$	64,467			$	64,516
Tangible common equity ratio (c)/(e) ⁽⁵⁾		10.20		%		10.10		%		10.29		%		9.80		%		9.67		%
Tier 1 common capital ratio (d)/(f) ⁽⁶⁾⁽⁷⁾		13.83				13.09				13.08				12.84				12.42

Refer to Exhibit 13 for footnote explanations.


UnionBanCal Corporation and Subsidiaries

Footnotes
Exhibit 13


⁽¹⁾		Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.
⁽²⁾		Annualized.
⁽³⁾		Core deposits consist of total deposits, excluding brokered deposits, foreign time deposits and domestic time deposits greater than $250,000.
⁽⁴⁾		The efficiency ratio, is total noninterest expense as a percentage of total revenue (net interest income and noninterest income). The core efficiency ratio, a non-GAAP financial measure, is net noninterest expense (noninterest expense excluding privatization-related expenses and fair value amortization/accretion, foreclosed asset expense, (reversal of) provision for losses on off-balance sheet commitments, low income housing credit investment amortization expense, expenses of the consolidated VIEs, merger costs related to acquisitions, asset impairment charges and certain costs related to productivity initiatives) as a percentage of total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding impact of privatization. Management discloses the core efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our core activities. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁵⁾		The tangible common equity ratio, a non-GAAP financial measure, is calculated as tangible common equity divided by tangible assets. The methodology for determining tangible common equity may differ among companies. The tangible common equity ratio has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁶⁾		The Tier 1 common capital ratio is the ratio of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. All of the trust preferred securities were paid off during the quarter ended March 31, 2011. The Tier 1 common capital ratio, a non-GAAP financial measure, has been included to facilitate the understanding of the Company's capital structure and for use in assessing and comparing the quality and composition of UnionBanCal's capital structure to other financial institutions. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽⁷⁾		Estimated as of December 31, 2011. The risk-based capital ratios at December 31, 2011 are considered preliminary, due primarily to a difference in methodologies applied by the OCC and the Federal Reserve with respect to the treatment of certain exposures. Accordingly, the final risk-based capital ratios are subject to change upon the resolution of this issue.
⁽⁸⁾		The allowance for credit losses ratios include the allowances for loan losses and losses on off-balance sheet commitments.
⁽⁹⁾		Average balances on loans outstanding include all nonperforming loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.
⁽¹⁰⁾		Includes interest bearing trading liabilities.
⁽¹¹⁾		These ratios exclude the impact of the privatization transaction. Management believes that these ratios, which exclude the push-down accounting effects of the privatization transaction, provide useful supplemental information, which is important to a proper understanding of the Company's core business results. Please refer to Exhibit 12 for a reconciliation between certain GAAP amounts and these non-GAAP measures.
⁽¹²⁾		These ratios exclude the impact of the FDIC covered loans, the related allowance for loan losses and FDIC covered OREO, which are covered under loss share agreements between Union Bank, N.A. and the Federal Deposit Insurance Corporation. Such agreements are related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank. Management believes the exclusion of FDIC covered loans and FDIC covered OREO in certain asset quality ratios that include nonperforming loans, nonperforming assets, total loans held for investment and the allowance for loan losses or credit losses in the numerator or denominator provides a better perspective into underlying asset quality trends.
⁽¹³⁾		Excludes loans totaling $165 million, $198 million, $251 million, $279 million and $312 million that are 90 days or more past due and still accruing at December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, which consist of FDIC covered loans accounted for in accordance with the accounting standards for purchased credit impaired loans.
⁽¹⁴⁾		Other includes a $16 million allowance for loan losses transfer attributed to an internal reorganization on October 1, 2011 in which The Bank of Tokyo-Mitsubishi UFJ transferred its trust company, The Bank of Tokyo-Mitsubishi UFJ Trust Company (BTMUT) to the Company.
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CONTACT:
UnionBanCal Corporation
Thomas Taggart, 415-765-2249
Corporate Communications
Michelle Crandall, 415-765-2780
Investor Relations

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

Exhibit No.	Description
99.1	Press release dated January 27, 2012.

Dated:	January 27, 2012


		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 January 27, 2012.