MUAH-093014-EARNINGS

Alan Gulick

Doug Lambert

Corporate Communications

Investor Relations

(425) 423-7317

(212) 782-5911

EX-99.1 2 muah-093014xearnings.htm EXHIBIT 99.1 MUAH-093014-EARNINGS

Exhibit 99.1

FOR IMMEDIATE RELEASE (Tuesday, October 28, 2014)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS THIRD QUARTER NET INCOME OF $246 MILLION

NEW YORK - MUFG Americas Holdings Corporation (the Company), parent company of San Francisco-based MUFG Union Bank, N.A. (the Bank), today reported third quarter 2014 results. Net income for the quarter was $246 million, compared with $249 million for the prior quarter, and up from $198 million for the year-ago quarter.

Third Quarter Highlights:


◦	Continued discipline in underwriting standards produced another solid quarter of strong credit quality with low nonperforming assets and charge-offs.


◦	The Company continued to have a strong capital position.


▪	Capital ratios continued to exceed the regulatory thresholds for "well-capitalized" bank holding companies. Basel III Tier 1 and Total risk-based capital ratios were 12.70 percent and 14.60 percent, respectively, at September 30, 2014.

◦

Effective July 1, 2014, UnionBanCal Corporation was renamed MUFG Americas Holdings Corporation and Union Bank, N.A. changed its legal name to MUFG Union Bank, N.A. In addition, the U.S. branch banking management and operations of The Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) were integrated within the Bank. The changes position the Bank to better leverage the strength and global reach of its parent company, Mitsubishi UFJ Financial Group, to provide a broad array of products and services to address our customers' financial needs.

Business Integration Initiative

Effective July 1, 2014, the U.S. branch banking operations of BTMU were integrated under the Bank's operations. The integration did not involve a legal entity combination, but rather an integration of personnel and certain business and support activities. As a result of this initiative, all of BTMU's banking activities in the Americas are managed by employees of the Bank, which includes the addition of approximately 2,300 U.S. employees formerly employed by BTMU. The Bank and BTMU entered into a master services agreement, which provides for employees of the Bank to perform and make available various business, banking, financial, and administrative and support services (the Services) and facilities for BTMU in connection with the operation and administration of BTMU's businesses in the U.S. (including BTMU's U.S.

branches). In consideration for the Services, BTMU pays to the Bank fee income, which reflects market-based pricing. Costs related to the Services performed by the transferred employees are primarily reflected as salaries and employee benefits expense. For the quarter ended September 30, 2014, the Company recorded $151 million in fee income from this initiative, including $94 million related to support services provided by the Company to BTMU. Substantially offsetting the fee income was $88 million, primarily in salaries and employee benefits expense, related to these support services. The remaining fee income was recognized through revenue sharing agreements with BTMU, with associated costs included within the Company’s third quarter results.

Summary of Third Quarter Results

Third Quarter Total Revenue

For the third quarter 2014, total revenue (net interest income plus noninterest income) was $1.1 billion, up $130 million compared with the second quarter 2014.

Net interest income decreased 7 percent while noninterest income increased 92 percent. Net interest income for the third quarter 2014 was $707 million, down $56 million compared with the second quarter 2014. The decrease in net interest income was largely due to higher levels of interest income recorded on our purchased credit-impaired (PCI) loan portfolio in the second quarter, mostly due to early payoffs of certain loans, partially offset by growth in loans held for investment in the third quarter 2014. Average total loans held for investment, excluding PCI loans, increased $2.5 billion, or 4 percent, compared with the second quarter 2014 largely due to growth in commercial and industrial loans and residential mortgages. The net interest margin was 2.87 percent, down 28 basis points from the prior quarter substantially due to the interest recorded on the PCI loan portfolio in the second quarter as described above. Excluding the impact of the PCI loan portfolio, the net interest margin would have been slightly higher than the net interest margin in the prior quarter. Average total deposits increased $1.0 billion, or 1 percent, during the quarter compared with the second quarter 2014.

For the third quarter 2014, noninterest income was $388 million, up $186 million, or 92 percent, compared with the second quarter 2014, largely due to fees from affiliates resulting from the business integration initiative.

Compared with the third quarter 2013, total revenue increased $176 million, with net interest income up 3 percent and noninterest income up 66 percent. Noninterest income increased largely due to fees from affiliates resulting from the business integration initiative. Net interest income increased $22 million compared with the year-ago quarter substantially due to loan growth. Average total loans held for investment, excluding PCI loans, increased $7.5 billion, or 11 percent, compared with the third quarter 2013. Average total deposits increased $4.8 billion compared with the third quarter of 2013 with average interest bearing deposits up $1.9 billion, or 4 percent, and average noninterest bearing deposits up $2.9 billion, or 12 percent.

Third Quarter Noninterest Expense

Noninterest expense for the third quarter 2014 was $805 million, up $156 million compared with the second quarter 2014 and up $116 million from the third quarter 2013. The increases were largely due to increased employee costs as a result of the business integration initiative.

Balance Sheet

At September 30, 2014, total assets were $110.9 billion, up $2.1 billion compared with June 30, 2014, primarily reflecting loan growth. Excluding PCI loans, total loans increased 3 percent compared with the second quarter, reflecting growth in core customer segments within the commercial and industrial loan portfolio and continuing growth in residential mortgage lending in our geographic footprint, with credit quality attributes consistent with the existing portfolio.

Total liabilities were $95.6 billion, up $1.8 billion compared with June 30, 2014 primarily due to an increase in wholesale funding and deposit growth. At September 30, 2014, total deposits were $82.4 billion, up $790 million compared with June 30, 2014. Core deposits at September 30, 2014 were $73.6 billion compared with $72.1 billion at June 30, 2014.

Credit Quality

Credit quality remained strong in the third quarter 2014 reflected by continued low levels of nonperforming assets and net charge-offs.

Excluding PCI loans and Federal Deposit Insurance Corporation (FDIC) covered other real estate owned (OREO), nonperforming assets at the end of the quarter were $402 million, or 0.36 percent of total assets; compared with $511 million, or 0.47 percent of total assets, at June 30, 2014; and $513 million, or 0.49 percent of total assets at September 30, 2013.

Excluding PCI loans and FDIC covered OREO, net charge-offs were $12 million for the third quarter of 2014 compared with $7 million for the second quarter 2014 and $1 million for the third quarter 2013.

The allowance for credit losses as a percentage of total loans, excluding PCI loans, was 0.93 percent at September 30, 2014, compared with 0.98 percent at June 30, 2014, and 1.12 percent at September 30, 2013. The allowance for credit losses as a percentage of nonaccrual loans, excluding PCI loans, was 176.28 percent at September 30, 2014, compared with 141.06 percent at June 30, 2014 and 150.14 percent at September 30, 2013. In the third quarter of 2014, the overall provision for credit losses was $1 million, compared with $6 million for the second quarter of 2014 and a provision reversal of $15 million for the third quarter of 2013.

Capital

The Company’s stockholder’s equity was $15.1 billion at September 30, 2014 compared with $14.2 billion at December 31, 2013. The Company's Common Equity Tier 1, Tier 1 and Total risk-based capital ratios, calculated in accordance with the transition guidelines set forth in the U.S. Basel III regulatory capital rules, were 12.66 percent, 12.70 percent and 14.60 percent, respectively, at September 30, 2014. The tangible common equity ratio was 10.79 percent at September 30, 2014.

The Company’s estimated Common Equity Tier 1 risk-based capital ratio under U.S. Basel III regulatory capital rules (standardized approach, fully phased-in) was 11.89 percent at September 30, 2014.

Non-GAAP Financial Measures

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

Forward-Looking Statements

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

Headquartered in New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with assets of $110.9 billion at September 30, 2014. Its principal subsidiary, MUFG Union Bank, N.A., provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. As of September 30, 2014, MUFG Union Bank, N.A. operated 415 branches, comprised primarily of retail banking branches in the West Coast states, along with branches in Texas, Illinois, New York and Georgia, as well as two international offices. MUFG Americas Holdings Corporation is a wholly owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd. which is a wholly owned subsidiary of Mitsubishi UFJ Financial Group, Inc., one of the world’s largest and most diversified financial groups. Visit www.unionbank.com for more information.

###

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															September 30, 2014 from
(Dollars in millions)	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2014		September 30, 2013
Results of operations:
Net interest income	$	707		$	763		$	683		$	706		$	685		(7	)%	3	%
Noninterest income	388			202			181			190			234			92		66
Total revenue	1,095			965			864			896			919			13		19
Noninterest expense	805			649			660			689			689			24		17
Pre-tax, pre-provision income ⁽¹⁾	290			316			204			207			230			(8	)	26
(Reversal of) provision for loan losses	(18		)	9			(16		)	(23		)	(16		)	(300	)	(13	)
Income before income taxes and including
noncontrolling interests	308			307			220			230			246			—		25
Income tax expense	67			62			50			55			55			8		22
Net income including noncontrolling interests	241			245			170			175			191			(2	)	26
Deduct: Net loss from noncontrolling interests	5			4			5			4			7			25		(29	)
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	246		$	249		$	175		$	179		$	198		(1	)	24

Balance sheet (end of period):
Total assets	$	110,879		$	108,820		$	107,237		$	105,894		$	105,484		2		5
Total securities	22,522			22,847			23,192			22,326			22,318			(1	)	1
Total loans held for investment	74,635			72,369			69,933			68,312			67,170			3		11
Core deposits ⁽²⁾	73,608			72,058			70,665			69,155			68,334			2		8
Total deposits	82,356			81,566			81,179			80,101			79,415			1		4
Long-term debt	6,984			6,995			6,545			6,547			7,803			—		(10	)
MUAH Stockholder's equity	15,051			14,815			14,460			14,215			12,549			2		20

Balance sheet (period average):
Total assets	$	109,739		$	107,871		$	106,491		$	104,424		$	101,534		2		8
Total securities	22,592			22,865			22,611			22,282			22,909			(1	)	(1	)
Total loans held for investment	73,353			71,104			69,293			67,619			66,608			3		10
Earning assets	98,933			97,405			96,100			94,707			92,035			2		7
Total deposits	82,239			81,221			80,433			79,747			77,434			1		6
MUAH Stockholder's equity	14,969			14,657			14,390			12,604			12,210			2		23

Performance ratios:
Return on average assets ⁽³⁾	0.90		%	0.92		%	0.66		%	0.68		%	0.78		%
Return on average MUAH stockholder's equity ⁽³⁾	6.57			6.80			4.87			5.66			6.50
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}	0.94			0.97			0.72			0.75			0.81
Return on average MUAH stockholder's equity excluding the impact of
privatization transaction and merger costs related to acquisitions ^{(3) (4)}	7.84			8.19			6.11			7.41			8.01
Efficiency ratio ⁽⁵⁾	73.51			67.23			76.38			76.89			75.01
Adjusted efficiency ratio ⁽⁶⁾	63.42			60.30			67.95			67.08			67.21
Net interest margin ^{(3) (7)}	2.87			3.15			2.87			2.99			2.99

Capital ratios:	U.S. Basel III									U.S. Basel I

Common Equity Tier 1 risk-based capital ratio^{(8) (9)}	12.66		%	12.58		%	12.59		%	n/a			n/a
Tier 1 common capital ratio ^{(8) (9) (10)}	n/a			n/a			n/a			12.34		%	11.10		%
Tier 1 risk-based capital ratio ^{(8) (9)}	12.70			12.62			12.62			12.41			11.17
Total risk-based capital ratio ^{(8) (9)}	14.60			14.57			14.75			14.61			13.11
Tier 1 leverage ratio ^{(8) (9)}	11.43			11.35			11.26			11.27			10.22
Tangible common equity ratio ⁽¹¹⁾	10.79			10.84			10.65			10.54			9.01

Common Equity Tier 1 risk-based capital ratio (U.S. Basel III
standardized approach; fully phased-in)^{(8) (12)}	11.89			11.60			11.42			11.14		%	n/a

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 1

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



	As of and for the Nine Months Ended						Percent Change to
	September 30,			September 30,			September 30, 2014 from
(Dollars in millions)	2014			2013			September 30, 2013
Results of operations:
Net interest income	$	2,153		$	2,010			7	%
Noninterest income	771			686				12
Total revenue	2,924			2,696				8
Noninterest expense	2,114			2,104				—
Pre-tax, pre-provision income ⁽¹⁾	810			592				37
(Reversal of) provision for loan losses	(25		)	(22		)		(14	)
Income before income taxes and including
noncontrolling interests	835			614				36
Income tax expense	179			140				28
Net income including noncontrolling interests	656			474				38
Deduct: Net loss from noncontrolling interests	14			14				—
Net income attributable to MUAH	$	670		$	488			37

Balance sheet (end of period):
Total assets	$	110,879		$	105,484			5
Total securities	22,522			22,318				1
Total loans held for investment	74,635			67,170				11
Core deposits ⁽²⁾	73,608			68,334				8
Total deposits	82,356			79,415				4
Long-term debt	6,984			7,803				(10	)
MUAH stockholder's equity	15,051			12,549				20

Balance sheet (period average):
Total assets	$	108,039		$	98,984			9
Total securities	22,689			22,643				—
Total loans held for investment	71,264			63,633				12
Earning assets	97,486			89,479				9
Total deposits	81,298			75,692				7
MUAH stockholder's equity	14,675			12,463				18

Performance ratios:
Return on average assets ⁽³⁾	0.83		%	0.66		%
Return on average MUAH stockholder's equity ⁽³⁾	6.08			5.23
Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions ^{(3) (4)}	0.87			0.73
Return on average MUAH stockholders' equity excluding the impact of privatization transaction and merger costs related to acquisitions ^{(3) (4)}	7.37			6.95
Efficiency ratio ⁽⁵⁾	72.29			78.03
Adjusted efficiency ratio ⁽⁶⁾	63.74			68.10
Net interest margin ^{(3) (7)}	2.97			3.02

___________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 2

MUFG Americas Holdings Corporation and Subsidiaries

Credit Quality (Unaudited)



																			Percent Change to
	As of and for the Three Months Ended																		September 30, 2014 from
	September 30,				June 30,				March 31,				December 31,			September 30,			June 30,		September 30,
(Dollars in millions)	2014				2014				2014				2013			2013			2014		2013

Credit Data:
(Reversal of) provision for loan losses, excluding purchased credit-impaired loans	$	(18	)		$	9			$	(18	)		$	(22	)	$	(16	)	(300	)%	(13	)%
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification	—				—				2				(1		)	—			-		-
(Reversal of) provision for losses on unfunded credit commitments	19				(3		)		16				2			1			nm		nm
Total (reversal of) provision for credit losses	$	1			$	6			$	—			$	(21	)	$	(15	)	(83	)	107

Net loans charged-off (recovered)	$	12			$	7			$	(6	)		$	11		$	(1	)	71		nm
Nonperforming assets	428				547				506				499			574			(22	)	(25	)
Criticized loans held for investment ⁽¹³⁾	1,245				1,450				1,317				1,274			1,270			(14	)	(2	)

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	0.71		%		0.77		%		0.80		%		0.83		%	0.91		%
Nonaccrual loans	131.28				108.90				119.58				128.42			119.04
Allowance for credit losses to ⁽¹⁴⁾:
Total loans held for investment	0.92				0.97				1.01				1.02			1.10
Nonaccrual loans	171.42				137.13				151.35				158.30			144.63
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	0.06				0.04				(0.04		)		0.07			(0.01		)
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	0.57				0.75				0.72				0.74			0.85
Nonperforming assets to total assets	0.39				0.50				0.47				0.48			0.54
Nonaccrual loans to total loans held for investment	0.54				0.71				0.67				0.65			0.76

Excluding purchased credit-impaired loans and FDIC covered OREO ⁽¹⁵⁾:
Allowance for loan losses to:
Total loans held for investment	0.71		%		0.78		%		0.80		%		0.84		%	0.92		%
Nonaccrual loans	134.80				111.88				123.14				132.82			123.53
Allowance for credit losses to ⁽¹⁴⁾:
Total loans held for investment	0.93				0.98				1.02				1.04			1.12
Nonaccrual loans	176.28				141.06				156.05				163.78			150.14
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	0.07				0.04				(0.04		)		0.11			0.01
Nonperforming assets to total loans held for investment and OREO	0.54				0.71				0.68				0.66			0.78
Nonperforming assets to total assets	0.36				0.47				0.44				0.43			0.49
Nonaccrual loans to total loans held for investment	0.53				0.69				0.65				0.63			0.75

	As of and for the Nine Months Ended								Percent Change
	September 30,				September 30,				to September 30, 2014
(Dollars in millions)	2014				2013				from September 30, 2013
Credit Data:
(Reversal of) provision for loan losses, excluding purchased credit-impaired loans	$	(27	)		$	(22	)		(23			)	%
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification	2				—				200
(Reversal of) provision for losses on unfunded credit commitments	32				14				129
Total (reversal of) provision for credit losses	$	7			$	(8	)		188

Net loans charged-off	$	13			$	21			(38			)
Nonperforming assets	428				574				(25			)
Credit Ratios:
Net loans charged-off to average total loans held for investment ⁽³⁾	0.02			%	0.04			%
Nonperforming assets to total assets	0.39				0.54

Excluding purchased credit-impaired loans and FDIC covered OREO ⁽¹⁵⁾:
Net loans charged-off to average total loans held for investment ⁽³⁾	0.02			%	0.05			%
Nonperforming assets to total assets	0.36				0.49

___________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 3

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Three Months Ended
(Dollars in millions)			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Interest Income
	Loans		$	693		$	749		$	667		$	695		$	668
	Securities		113			115			115			115			118
	Other		2			3			5			6			2
		Total interest income	808			867			787			816			788

Interest Expense
	Deposits		58			61			62			64			63
	Commercial paper and other short-term borrowings		1			2			1			1			2
	Long-term debt		42			41			41			45			38
		Total interest expense	101			104			104			110			103

Net Interest Income			707			763			683			706			685
	(Reversal of) provision for loan losses		(18		)	9			(16		)	(23		)	(16		)
		Net interest income after (reversal of) provision for loan losses	725			754			699			729			701

Noninterest Income
	Service charges on deposit accounts		52			50			51			51			53
	Trust and investment management fees		26			26			26			28			34
	Trading account activities		33			14			16			20			15
	Securities gains, net		13			1			2			8			47
	Credit facility fees		30			31			28			28			31
	Merchant banking fees		38			27			24			25			29
	Brokerage commissions and fees		14			13			13			12			12
	Card processing fees, net		8			9			8			8			8
	Fees from affiliates ⁽¹⁶⁾		151			—			—			—			—
	Other, net		23			31			13			10			5
		Total noninterest income	388			202			181			190			234

Noninterest Expense
	Salaries and employee benefits		492			378			388			406			391
	Net occupancy and equipment		74			75			71			70			77
	Professional and outside services		66			63			55			64			66
	Intangible asset amortization		13			13			13			16			16
	Regulatory assessments		13			16			15			14			20
	(Reversal of) provision for losses on unfunded credit commitments		19			(3		)	16			2			1
	Other		128			107			102			117			118
		Total noninterest expense	805			649			660			689			689

	Income before income taxes and including
	noncontrolling interests		308			307			220			230			246
	Income tax expense		67			62			50			55			55
Net Income including Noncontrolling Interests			241			245			170			175			191
	Deduct: Net loss from noncontrolling interests		5			4			5			4			7
Net Income attributable to MUAH			$	246		$	249		$	175		$	179		$	198

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 4

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Nine Months Ended
(Dollars in millions)			September 30, 2014			September 30, 2013
Interest Income
	Loans		$	2,109		$	1,946
	Securities		343			354
	Other		10			7
		Total interest income	2,462			2,307

Interest Expense
	Deposits		181			184
	Commercial paper and other short-term borrowings		4			4
	Long-term debt		124			109
		Total interest expense	309			297

Net Interest Income			2,153			2,010
	(Reversal of) provision for loan losses		(25		)	(22		)
		Net interest income after (reversal of) provision for loan losses	2,178			2,032

Noninterest Income
	Service charges on deposit accounts		153			158
	Trust and investment management fees		78			107
	Trading account activities		63			41
	Securities gains, net		16			170
	Credit facility fees		89			83
	Merchant banking fees		89			68
	Brokerage commissions and fees		40			34
	Card processing fees, net		25			26
	Fees from affiliates ⁽¹⁶⁾		151			—
	Other, net		67			(1		)
		Total noninterest income	771			686

Noninterest Expense
	Salaries and employee benefits		1,258			1,225
	Net occupancy and equipment		220			236
	Professional and outside services		184			186
	Intangible asset amortization		39			49
	Regulatory assessments		44			60
	(Reversal of) provision for losses on unfunded credit commitments		32			14
	Other		337			334
		Total noninterest expense	2,114			2,104

	Income before income taxes and including
	noncontrolling interests		835			614
	Income tax expense		179			140
Net Income including Noncontrolling Interests			656			474
	Deduct: Net loss from noncontrolling interests		14			14
Net Income attributable to MUAH			$	670		$	488

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 5

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)



(Dollars in millions except for per share amount)				September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Assets
Cash and due from banks				$	1,593		$	1,911		$	1,792		$	1,863		$	1,719
Interest bearing deposits in banks				2,772			2,353			2,883			4,329			5,471
Federal funds sold and securities purchased under resale agreements				154			65			32			11			122
		Total cash and cash equivalents		4,519			4,329			4,707			6,203			7,312
Trading account assets (includes $14 at September 30, 2014, $25 at June 30, 2014; $9 at March 31, 2014; $8 at December 31, 2013; and $13 at September 30, 2013 of assets pledged as collateral)				883			941			841			851			776
Securities available for sale				14,064			14,670			15,366			15,817			16,872
Securities held to maturity (Fair value: September 30, 2014 $8,491; June 30, 2014, $8,251; March 31, 2014, $7,810; December 31, 2013, $6,439; September 30, 2013, $5,450)				8,458			8,177			7,826			6,509			5,446
Loans held for investment				74,635			72,369			69,933			68,312			67,170
	Allowance for loan losses			(529		)	(559		)	(557		)	(568		)	(608		)
		Loans held for investment, net		74,106			71,810			69,376			67,744			66,562
Premises and equipment, net				617			632			641			688			685
Goodwill				3,227			3,227			3,227			3,228			3,168
Other assets				5,005			5,034			5,253			4,854			4,663
			Total assets	$	110,879		$	108,820		$	107,237		$	105,894		$	105,484

Liabilities
Deposits:
	Noninterest bearing			$	28,676		$	27,446		$	26,881		$	26,495		$	26,126
	Interest bearing			53,680			54,120			54,298			53,606			53,289
		Total deposits		82,356			81,566			81,179			80,101			79,415
Commercial paper and other short-term borrowings				3,876			2,870			2,660			2,563			3,078
Long-term debt				6,984			6,995			6,545			6,547			7,803
Trading account liabilities				596			664			531			540			614
Other liabilities				1,777			1,666			1,611			1,675			1,767
			Total liabilities	95,589			93,761			92,526			91,426			92,677

Equity
MUAH Stockholder's Equity:
	Common stock, par value $1 per share:
		Authorized 300,000,000 shares; 136,330,831 shares issued and outstanding as of September 30, 2014 and 136,330,830 as of June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013 respectively		136			136			136			136			136
	Additional paid-in capital			7,223			7,184			7,196			7,191			5,985
	Retained earnings			8,191			7,936			7,687			7,512			7,333
	Accumulated other comprehensive loss			(499		)	(441		)	(559		)	(624		)	(905		)
			Total MUAH stockholder's equity	15,051			14,815			14,460			14,215			12,549
	Noncontrolling interests			239			244			251			253			258
			Total equity	15,290			15,059			14,711			14,468			12,807
			Total liabilities and equity	$	110,879		$	108,820		$	107,237		$	105,894		$	105,484

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	September 30, 2014							June 30, 2014
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁷⁾
Commercial and industrial	$	25,746		$	220	3.39	%	$	24,421		$	202	3.33	%
Commercial mortgage	13,643			122		3.57		13,529			124		3.66
Construction	1,336			10		3.12		1,146			10		3.24
Lease financing	811			12		5.69		840			14		6.74
Residential mortgage	27,967			250		3.58		27,063			247		3.66
Home equity and other consumer loans	3,164			32		4.08		3,191			32		4.04
Loans, before purchased credit-impaired loans	72,667			646		3.54		70,190			629		3.59
Purchased credit-impaired loans	686			48		27.70		914			120		52.45
Total loans held for investment	73,353			694		3.77		71,104			749		4.22
Securities	22,592			117		2.08		22,865			120		2.10
Interest bearing deposits in banks	2,380			2		0.26		2,878			2		0.25
Federal funds sold and securities purchased under resale agreements	106			—		—		102			—		0.02
Trading account assets	164			—		0.66		194			1		1.04
Other earning assets	338			1		0.73		262			—		0.83
Total earning assets	98,933			814		3.28		97,405			872		3.58
Allowance for loan losses	(566		)					(561		)
Cash and due from banks	1,597							1,450
Premises and equipment, net	626							642
Other assets	9,149							8,935
Total assets	$	109,739						$	107,871
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,128		33		0.34		$	37,646		35		0.38
Savings	5,574			2		0.08		5,590			1		0.09
Time	9,766			23		0.96		10,761			25		0.91
Total interest bearing deposits	54,468			58		0.42		53,997			61		0.45
Commercial paper and other short-term borrowings ⁽¹⁸⁾	2,820			1		0.17		2,521			2		0.20
Long-term debt	6,994			42		2.38		6,923			41		2.39
Total borrowed funds	9,814			43		1.75		9,444			43		1.80
Total interest bearing liabilities	64,282			101		0.63		63,441			104		0.65
Noninterest bearing deposits	27,771							27,224
Other liabilities	2,474							2,298
Total liabilities	94,527							92,963
Equity
MUAH Stockholder's equity	14,969							14,657
Noncontrolling interests	243							251
Total equity	15,212							14,908
Total liabilities and equity	$	109,739						$	107,871

Net interest income/spread (taxable-equivalent basis)				713		2.65	%				768		2.93	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.87							3.15
Less: taxable-equivalent adjustment				6							5
Net interest income				$	707						$	763

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	September 30, 2014							September 30, 2013
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁷⁾
Commercial and industrial	$	25,746		$	220	3.39	%	$	22,930		$	192	3.32	%
Commercial mortgage	13,643			122		3.57		12,936			117		3.62
Construction	1,336			10		3.12		827			7		3.30
Lease financing	811			12		5.69		973			12		4.92
Residential mortgage	27,967			250		3.58		24,157			225		3.72
Home equity and other consumer loans	3,164			32		4.08		3,384			33		3.87
Loans, before purchased credit-impaired loans	72,667			646		3.54		65,207			586		3.58
Purchased credit-impaired loans	686			48		27.70		1,401			82		23.46
Total loans held for investment	73,353			694		3.77		66,608			668		4.00
Securities	22,592			117		2.08		22,909			122		2.12
Interest bearing deposits in banks	2,380			2		0.26		2,050			1		0.25
Federal funds sold and securities purchased under resale agreements	106			—		—		101			—		0.13
Trading account assets	164			—		0.66		134			1		0.43
Other earning assets	338			1		0.73		233			—		0.97
Total earning assets	98,933			814		3.28		92,035			792		3.43
Allowance for loan losses	(566		)					(633		)
Cash and due from banks	1,597							1,315
Premises and equipment, net	626							694
Other assets	9,149							8,123
Total assets	$	109,739						$	101,534
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,128		33		0.34		$	34,912		31		0.36
Savings	5,574			2		0.08		5,633			2		0.13
Time	9,766			23		0.96		12,017			30		0.98
Total interest bearing deposits	54,468			58		0.42		52,562			63		0.47
Commercial paper and other short-term borrowings ⁽¹⁸⁾	2,820			1		0.17		3,376			2		0.20
Long-term debt	6,994			42		2.38		6,135			38		2.47
Total borrowed funds	9,814			43		1.75		9,511			40		1.66
Total interest bearing liabilities	64,282			101		0.63		62,073			103		0.66
Noninterest bearing deposits	27,771							24,872
Other liabilities	2,474							2,110
Total liabilities	94,527							89,055
Equity
MUAH Stockholder's equity	14,969							12,210
Noncontrolling interests	243							269
Total equity	15,212							12,479
Total liabilities and equity	$	109,739						$	101,534

Net interest income/spread (taxable-equivalent basis)				713		2.65	%				689		2.77	%
Impact of noninterest bearing deposits						0.19							0.19
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.87							2.99
Less: taxable-equivalent adjustment				6							4
Net interest income				$	707						$	685

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Nine Months Ended
	September 30, 2014							September 30, 2013
				Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in millions)	Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾		Balance			Expense ⁽⁷⁾		Rate ⁽³⁾⁽⁷⁾
Assets
Loans held for investment: ⁽¹⁷⁾
Commercial and industrial	$	24,708		$	620	3.36	%	$	21,996		$	554	3.37	%
Commercial mortgage	13,469			365		3.61		11,573			330		3.81
Construction	1,154			28		3.30		760			22		3.84
Lease financing	833			37		5.95		1,030			28		3.61
Residential mortgage	27,014			735		3.63		23,485			667		3.79
Home equity and other consumer loans	3,196			96		4.04		3,495			100		3.85
Loans, before purchased credit-impaired loans	70,374			1,881		3.57		62,339			1,701		3.64
Purchased credit-impaired loans	890			229		34.27		1,294			245		25.30
Total loans held for investment	71,264			2,110		3.95		63,633			1,946		4.08
Securities	22,689			357		2.10		22,643			365		2.15
Interest bearing deposits in banks	2,934			6		0.25		2,671			5		0.25
Federal funds sold and securities purchased under resale agreements	113			—		0.06		131			—		0.17
Trading account assets	208			3		1.80		149			1		0.36
Other earning assets	278			2		0.95		252			1		0.62
Total earning assets	97,486			2,478		3.39		89,479			2,318		3.46
Allowance for loan losses	(568		)					(642		)
Cash and due from banks	1,512							1,356
Premises and equipment, net	638							701
Other assets	8,971							8,090
Total assets	$	108,039						$	98,984
Liabilities
Interest bearing deposits:
Transaction and money market accounts	38,097			104		0.37		32,983			79		0.32
Savings	5,579			4		0.09		5,717			6		0.13
Time	10,575			73		0.93		12,346			99		1.07
Total interest bearing deposits	54,251			181		0.45		51,046			184		0.48
Commercial paper and other short-term borrowings ⁽¹⁸⁾	2,658			4		0.19		2,814			4		0.19
Long-term debt	6,822			124		2.42		5,629			109		2.57
Total borrowed funds	9,480			128		1.79		8,443			113		1.78
Total interest bearing liabilities	63,731			309		0.65		59,489			297		0.67
Noninterest bearing deposits	27,047							24,646
Other liabilities	2,337							2,118
Total liabilities	93,115							86,253
Equity
MUAH Stockholder's equity	14,675							12,463
Noncontrolling interests	249							268
Total equity	14,924							12,731
Total liabilities and equity	$	108,039						$	98,984

Net interest income/spread (taxable-equivalent basis)				2,169		2.74	%				2,021		2.79	%
Impact of noninterest bearing deposits						0.19							0.20
Impact of other noninterest bearing sources						0.04							0.03
Net interest margin						2.97							3.02
Less: taxable-equivalent adjustment				16							11
Net interest income				$	2,153						$	2,010

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 9

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



					September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in millions)					2014		2014		2014		2013		2013

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	26,429	$	25,162	$	23,654	$	23,528	$	23,125
		Commercial mortgage			13,766		13,549		13,568		13,092		12,905
		Construction			1,436		1,248		1,019		905		855
		Lease financing			811		829		845		854		972
			Total commercial portfolio		42,442		40,788		39,086		38,379		37,857

		Residential mortgage			28,425		27,619		26,602		25,547		24,714
		Home equity and other consumer loans			3,141		3,178		3,194		3,280		3,336
			Total consumer portfolio		31,566		30,797		29,796		28,827		28,050
				Loans held for investment, before purchased credit-impaired loans	74,008		71,585		68,882		67,206		65,907
		Purchased credit-impaired loans			627		784		1,051		1,106		1,263

				Total loans held for investment	$	74,635	$	72,369	$	69,933	$	68,312	$	67,170

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	71	$	161	$	89	$	44	$	62
		Commercial mortgage			34		47		46		51		88
			Total commercial portfolio		105		208		135		95		150

		Residential mortgage			239		243		266		286		293
		Home equity and other consumer loans			46		46		49		46		48
			Total consumer portfolio		285		289		315		332		341

				Nonaccrual loans, before purchased credit-impaired loans	390		497		450		427		491
		Purchased credit-impaired loans			13		17		16		15		20
				Total nonaccrual loans	403		514		466		442		511

	OREO				12		14		17		20		22
	FDIC covered OREO				13		19		23		37		41

				Total nonperforming assets	$	428	$	547	$	506	$	499	$	574

				Total nonperforming assets, excluding purchased credit-impaired
				loans and FDIC covered OREO	$	402	$	511	$	467	$	447	$	513

	Loans 90 days or more past due and still accruing ⁽¹⁹⁾				$	4	$	11	$	4	$	5	$	8

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 10

MUFG Americas Holdings Corporation and Subsidiaries

Allowance for Credit Losses (Unaudited)



	As of and for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in millions)	2014			2014			2014			2013			2013

Analysis of Allowance for Credit Losses
Balance, beginning of period	$	559		$	557		$	568		$	608		$	625
(Reversal of) provision for loan losses, excluding purchased credit-impaired loans	(18		)	9			(18		)	(22		)	(16		)
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification	—			—			2			(1		)	—
Increase/(decrease) in allowance covered by FDIC indemnification	—			—			—			(6		)	(2		)
Other	—			—			(1		)	—			—
Loans charged-off:
Commercial and industrial	(15		)	(6		)	(5		)	(18		)	(6		)
Commercial mortgage	—			(2		)	(1		)	(2		)	(2		)
Construction	—			—			—			—			(1		)
Total commercial portfolio	(15		)	(8		)	(6		)	(20		)	(9		)
Residential mortgage	—			(2		)	(1		)	(1		)	(2		)
Home equity and other consumer loans	(2		)	(2		)	(2		)	(4		)	(2		)
Total consumer portfolio	(2		)	(4		)	(3		)	(5		)	(4		)
Purchased credit-impaired loans	(1		)	—			—			—			—
Total loans charged-off	(18		)	(12		)	(9		)	(25		)	(13		)
Recoveries of loans previously charged-off:
Commercial and industrial	3			3			11			6			5
Commercial mortgage	2			1			—			—			4
Construction	—			—			3			—			1
Lease financing	—			—			—			1			—
Total commercial portfolio	5			4			14			7			10
Home equity and other consumer loans	—			1			1			—			2
Total consumer portfolio	—			1			1			—			2
Purchased credit-impaired loans	1			—			—			7			2
Total recoveries of loans previously charged-off	6			5			15			14			14
Net loans recovered (charged-off)	(12		)	(7		)	6			(11		)	1

Ending balance of allowance for loan losses	529			559			557			568			608
Allowance for losses on unfunded credit commitments	162			145			148			132			131
Total allowance for credit losses	$	691		$	704		$	705		$	700		$	739

Components of allowance for loan losses and credit losses:
Allowance for loan losses, excluding allowance on purchased credit-impaired loans	$	526		$	556		$	554		$	567		$	607
Allowance for loan losses on purchased credit-impaired loans	3			3			3			1			1
Total allowance for loan losses	$	529		$	559		$	557		$	568		$	608

Exhibit 11

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			September 30, 2014				June 30, 2014				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		June 30, 2014			June 30, 2014
Asset Liability Management securities:
U.S. Treasury			$	70	$	70	$	—	$	—	$	70		100	%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		7,886		7,739		8,281		8,157		(418		)	(5	)
	Privately issued		175		177		188		191		(14		)	(7	)
Privately issued - commercial mortgage-backed securities			1,770		1,745		1,824		1,813		(68		)	(4	)
Collateralized loan obligations			2,438		2,422		2,543		2,534		(112		)	(4	)
Asset-backed and other			13		14		18		19		(5		)	(26	)
		Asset Liability Management securities	12,352		12,167		12,854		12,714		(547		)	(4	)
Other debt securities:
Direct bank purchase bonds			1,819		1,833		1,888		1,897		(64		)	(3	)
Other			54		52		54		52		—			—
Equity securities			10		12		6		7		5			71
		Total securities available for sale	$	14,235	$	14,064	$	14,802	$	14,670	$	(606	)	(4	)%

Securities Held to Maturity

			September 30, 2014				June 30, 2014				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²⁰⁾		Value		Amount ⁽²⁰⁾		Value		June 30, 2014			June 30, 2014
U.S. Treasury			$	485	$	484	$	484	$	486	$	1		—	%
U.S. government-sponsored agencies			125		125		275		275		(150		)	(55	)
U.S. government agency and government-sponsored
	agencies - residential mortgage-backed securities		6,102		6,107		5,669		5,698		433			8
U.S. government agency and government-sponsored
	agencies - commercial mortgage-backed securities		1,746		1,775		1,749		1,792		(3		)	—
		Total securities held to maturity	$	8,458	$	8,491	$	8,177	$	8,251	$	281		3

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 12

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)

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
		September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in millions)		2014			2014			2014			2013			2013
Net income attributable to MUAH		$	246		$	249		$	175		$	179		$	198
Net adjustments for merger costs related to acquisitions, net of tax		13			15			11			12			15
Net adjustments for privatization transaction, net of tax		(8		)	(9		)	1			2			(14		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	251		$	255		$	187		$	193		$	199

Average total assets		$	109,739		$	107,871		$	106,491		$	104,424		$	101,534
Less: Net adjustments related to privatization transaction		2,255			2,260			2,272			2,297			2,309
Average total assets, excluding impact of privatization transaction		$	107,484		$	105,611		$	104,219		$	102,127		$	99,225
Return on average assets ⁽³⁾		0.90		%	0.92		%	0.66		%	0.68		%	0.78		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(3) (4)}	0.94			0.97			0.72			0.75			0.81

Average MUAH stockholder's equity		$	14,969		$	14,657		$	14,390		$	12,604		$	12,210
Less: Adjustments for merger costs related to acquisitions		(147		)	(132		)	(118		)	(105		)	(93		)
Less: Net adjustments for privatization transaction		2,290			2,297			2,302			2,306			2,319
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	12,826		$	12,492		$	12,206		$	10,403		$	9,984
Return on average MUAH stockholder's equity ⁽³⁾		6.57		%	6.80		%	4.87		%	5.66		%	6.50		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(3) (4)}	7.84			8.19			6.11			7.41			8.01

Noninterest expense		$	805		$	649		$	660		$	689		$	689
Less: Staff costs associated with fees from affiliates - support services		88			—			—			—			—
Less: Foreclosed asset expense and other credit costs		(1		)	1			—			2			(2		)
Less: (Reversal of) provision for losses on unfunded credit commitments		19			(3		)	16			2			1
Less: Productivity initiative costs		6			4			1			20			14
Less: Low income housing credit (LIHC) investment amortization expense		25			20			20			24			17
Less: Expenses of the LIHC consolidated VIEs		8			8			8			6			11
Less: Merger and business integration costs		22			25			17			25			25
Less: Net adjustments related to privatization transaction		11			10			10			14			13
Less: Intangible asset amortization		3			3			3			3			3
	Noninterest expense, as adjusted (a)	$	624		$	581		$	585		$	593		$	607

Total revenue		$	1,095		$	965		$	864		$	896		$	919
Add: Net interest income taxable-equivalent adjustment		6			5			5			4			4
Less: Fees from affiliates - support services		94			—			—			—			—
Less: Productivity initiative gains		—			—			—			6			11
Less: Accretion related to privatization-related fair value adjustments		4			9			6			8			8
Less: Other credit costs		17			(2		)	2			1			1
	Total revenue, as adjusted (b)	$	986		$	963		$	861		$	885		$	903
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		63.42		%	60.30		%	67.95		%	67.08		%	67.21		%

Total MUAH stockholder's equity		$	15,051		$	14,815		$	14,460		$	14,215		$	12,549
Less: Goodwill		3,227			3,227			3,227			3,228			3,168
Less: Intangible assets, except mortgage servicing rights (MSRs)		249			262			275			288			287
Less: Deferred tax liabilities related to goodwill and intangible assets		(20		)	(99		)	(102		)	(105		)	(110		)
	Tangible common equity (c)	$	11,595		$	11,425		$	11,060		$	10,804		$	9,204
Total assets		$	110,879		$	108,820		$	107,237		$	105,894		$	105,484
Less: Goodwill		3,227			3,227			3,227			3,228			3,168
Less: Intangible assets, except MSRs		249			262			275			288			287
Less: Deferred tax liabilities related to goodwill and intangible assets		(20		)	(99		)	(102		)	(105		)	(110		)
	Tangible assets (d)	$	107,423		$	105,430		$	103,837		$	102,483		$	102,139
Tangible common equity ratio (c)/(d) ⁽¹¹⁾		10.79		%	10.84		%	10.65		%	10.54		%	9.01		%

Tier 1 capital, determined in accordance with U.S. Basel I regulatory requirements		n/a			n/a			n/a			$	11,471		$	10,153
Less: Junior subordinated debt payable to trusts		n/a			n/a			n/a			66			66
	Basel I Tier 1 common capital (e)	n/a			n/a			n/a			$	11,405		$	10,087
Common Equity Tier 1 capital under U.S. Basel III (transitional)		$	12,189		$	11,900		$	11,640		n/a			n/a
Accumulated other comprehensive loss related to securities available for
	sale and pension and other benefits ⁽⁹⁾	(388		)	(377		)	(449		)	(522		)	n/a
Other ⁽⁹⁾		(122		)	(130		)	(138		)	(95		)	n/a
Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach;
	fully phased-in) (f)	$	11,679		$	11,393		$	11,053		$	10,788		n/a
Risk-weighted assets, determined in accordance with regulatory requirements (g) ⁽⁹⁾		$	96,239		$	94,556		$	92,476		$	92,410		$	90,900
Add: Adjustments ⁽⁹⁾		1,955			3,638			4,293			4,444			n/a
Total risk-weighted assets, estimated under U.S. Basel III (standardized approach;
	fully phased-in) (h)	$	98,194		$	98,194		$	96,769		$	96,854		n/a
Common Equity Tier 1 risk-based capital ratio (f)/(h) ^{(8) (12)}		11.89		%	11.60		%	11.42		%	11.14		%	n/a
Tier 1 common capital ratio (e)/(g) ^{(8) (9) (10)}		n/a			n/a			n/a			12.34		%	11.10		%

Refer to Exhibit 15 for footnote explanations.

Exhibit 13

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		For the Nine Months Ended
		September 30,			September 30,
(Dollars in millions)		2014			2013

Net income attributable to MUAH		$	670		$	488
Net adjustments for merger costs related to acquisitions, net of tax		39			66
Net adjustments for privatization transaction, net of tax		(16		)	(23		)
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	693		$	531

Average total assets		$	108,039		$	98,984
Less: Net adjustments related to privatization transaction		2,262			2,319
Average total assets, excluding impact of privatization transaction		$	105,777		$	96,665
Return on average assets ⁽³⁾		0.83		%	0.66		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions ^{(3) (4)}	0.87			0.73

Average MUAH stockholder's equity		$	14,675		$	12,463
Less: Adjustments for merger costs related to acquisitions		(132		)	(71		)
Less: Net adjustments for privatization transaction		2,296			2,336
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	12,511		$	10,198
Return on average MUAH stockholder's equity ⁽³⁾		6.08		%	5.23		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions ^{(3) (4)}	7.37			6.95

Noninterest expense		$	2,114		$	2,104
Less: Staff costs associated with fees from affiliates - support services		88			—
Less: Foreclosed asset expense and other credit costs		(1		)	(6		)
Less: (Reversal of) provision for losses on unfunded credit commitments		32			14
Less: Productivity initiative costs		11			31
Less: Low income housing credit (LIHC) investment amortization expense		65			52
Less: Expenses of the LIHC consolidated VIEs		23			23
Less: Merger and business integration costs		64			109
Less: Net adjustments related to privatization transaction		31			41
Less: Intangible asset amortization		10			10
	Noninterest expense, as adjusted (a)	$	1,791		$	1,830

Total revenue		$	2,924		$	2,696
Add: Net interest income taxable-equivalent adjustment		16			11
Less: Fees from affiliates - support services		94			—
Less: Productivity initiative gains		—			11
Less: Accretion related to privatization-related fair value adjustments		20			16
Less: Other credit costs		18			(6		)
	Total revenue, as adjusted (b)	$	2,808		$	2,686
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		63.74		%	68.10		%

____________________________________________

Refer to Exhibit 15 for footnote explanations.

Exhibit 14

MUFG Americas Holdings Corporation and Subsidiaries

Footnotes


(1)	Pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover loan losses through a credit cycle.


(2)	Core deposits exclude brokered deposits, foreign time deposits and domestic time deposits greater than $250,000.


(3)	Annualized.


(4)	These ratios exclude the impact of the privatization transaction and merger costs related to acquisitions. Management believes that these ratios provide useful supplemental information regarding the Company's business results. Please refer to Exhibits 13 and 14 for reconciliations between certain GAAP amounts and these non-GAAP measures.


(5)	The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income).

(6)

The adjusted efficiency ratio, a non-GAAP financial measure, is adjusted noninterest expense (noninterest expense excluding staff costs associated with fees from affiliates - support services, foreclosed asset expense and other credit costs, (reversal of) provision for losses on unfunded credit commitments, certain costs related to productivity initiatives, low income housing credit (LIHC) investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger and business integration costs, privatization-related expenses, and intangible asset amortization) as a percentage of adjusted total revenue (net interest income (taxable-equivalent basis) and noninterest income), excluding the impact of fees from affiliates - support services, gains from productivity initiatives related to the sale of certain business units and premises, accretion related to privatization-related fair value adjustments, and other credit costs. Management discloses the adjusted efficiency ratio as a measure of the efficiency of our operations, focusing on those costs most relevant to our business activities. Please refer to Exhibits 13 and 14 for reconciliations between certain GAAP amounts and these non-GAAP measures.


(7)	Yields, interest income and net interest margin are presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.


(8)	Estimated as of September 30, 2014.


(9)	The capital ratios displayed as of September 30, 2014, June 30, 2014, and March 30, 2014 are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' revised capital framework for implementing the final U.S. Basel III regulatory capital rules. The capital ratios as of and prior to December 31, 2013 are calculated under Basel I rules.

(10)

The Tier 1 common capital ratio is the ratio, calculated under Basel I rules, of Tier 1 capital, less qualifying trust preferred securities, to risk-weighted assets. The Tier 1 common capital ratio, a non-GAAP financial measure, facilitates the understanding of the Company's capital structure and is used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(11)

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 facilitates the understanding of the Company's capital structure and is used to assess and compare the quality and composition of the Company's capital structure to other financial institutions. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(12)

Common Equity Tier 1 risk-based capital (standardized, fully phased-in basis) is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies as if the transition provisions of the U.S. Basel III rules were fully phased in for the periods in which the ratio is disclosed. Management reviews this ratio, which includes components of accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information, and the corresponding reconciliation from Common Equity Tier 1 capital (calculated according to the transition provisions under U.S. Basel III rules) because of current interest in such information by market participants. Please refer to Exhibit 13 for a reconciliation between certain GAAP amounts and these non-GAAP measures.


(13)	Criticized loans held for investment reflects loans in the commercial portfolio segment that are monitored for credit quality based on internal ratings. Amounts exclude small business loans, which are monitored by business credit score and delinquency status.


(14)	The allowance for credit losses ratios include the allowances for loan losses and losses on unfunded credit commitments against end of period total loans held for investment or total nonaccrual loans, as appropriate.

(15)

These ratios exclude the impact of all purchased credit-impaired loans and FDIC covered OREO. Purchased credit-impaired loans and OREO related to the April 2010 acquisitions of certain assets and assumption of certain liabilities of Frontier Bank and Tamalpais Bank are covered under loss share agreements between the Bank and the Federal Deposit Insurance Corporation. Management believes the exclusion of purchased credit-impaired loans and FDIC covered OREO from certain asset quality ratios that include nonaccrual loans, nonperforming assets, net loans charged-off, 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.


(16)	Fees from affiliates represents income resulting from the July 1, 2014 business integration initiative.


(17)	Average balances on loans held for investment 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.


(18)	Includes interest bearing trading liabilities.

(19)

Excludes loans totaling $65 million, $103 million, $123 million, $124 million, and $203 million that are 90 days or more past due and still accruing at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013, respectively, which consist of loans accounted for within loan pools in accordance with the accounting standards for purchased credit-impaired loans. The past due status of individual loans within the pools is not a meaningful indicator of credit quality, as potential credit losses are measured at the loan pool level.


(20)	Carrying amount reflects amortized cost except for balances transferred from available for sale to held to maturity securities. Those balances reflect amortized cost plus any unrealized gains or losses at the date of transfer.

nm = not meaningful

n/a = not applicable

Exhibit 15