Exhibit

Alan Gulick

Doug Lambert

Corporate Communications

Investor Relations

(425) 423-7317

(212) 782-5911

EX-99.1 2 muah-earnings_ex991q12016.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

MUFG Americas Holdings Corporation

A member of MUFG, a global financial group

FOR IMMEDIATE RELEASE (April 25, 2016)

MUFG AMERICAS HOLDINGS CORPORATION REPORTS FIRST QUARTER NET INCOME OF $49 MILLION

NEW YORK - MUFG Americas Holdings Corporation (the Company), parent company of San Francisco-based MUFG Union Bank, N.A. (the Bank), today reported net income for the quarter of $49 million, compared with $69 million for the prior quarter and $137 million for the year-ago quarter.

First Quarter Results:


◦	Net income for the first quarter was $49 million, down $20 million from the fourth quarter of 2015.


◦	The provision for credit losses was $162 million primarily due to an increase in reserves within the oil and gas sector, compared with $192 million in the fourth quarter of 2015.


◦	Loans held for investment at March 31, 2016 were $79.3 billion, up $1.7 billion from December 31, 2015.



	1

The following table presents financial highlights for the periods ended March 31, 2016, December 31, 2015 and March 31, 2015:



										Percent Change to
	As of and for the Three Months Ended									March 31, 2016 from
(Dollars in millions)	March 31, 2016			December 31, 2015			March 31, 2015			December 31, 2015		March 31, 2015
Results of operations:
Net interest income	$	697		$	708		$	683		(2	)%	2	%
Noninterest income	395			413			335			(4	)	18
Total revenue	1,092			1,121			1,018			(3	)	7
Noninterest expense	876			891			849			(2	)	3
Pre-tax, pre-provision income ⁽¹⁾	216			230			169			(6	)	28
Provision for credit losses	162			192			3			(16	)	nm
Income before income taxes and including
noncontrolling interests	54			38			166			42		(67	)
Income tax expense	17			(18		)	34			194		(50	)
Net income including noncontrolling interests	37			56			132			(34	)	(72	)
Deduct: Net loss from noncontrolling interests	12			13			5			(8	)	140
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	49		$	69		$	137		(29	)	(64	)

Balance sheet (period average):
Total assets	$	115,866		$	115,914		$	113,134		—		2
Total securities	23,507			24,351			22,172			(3	)	6
Total loans held for investment	78,450			77,832			77,305			1		1
Earning assets	104,888			104,966			102,645			—		2
Total deposits	84,010			84,033			84,088			—		—
MUAH stockholder's equity	15,687			15,722			15,069			—		4
Net interest margin ^{(3) (7)}	2.69		%	2.72		%	2.70		%	(1	)	—

Balance sheet (end of period):
Total assets	$	120,909		$	116,216		$	113,698		4		6
Total securities	23,616			24,502			22,463			(4	)	5
Total loans held for investment	79,299			77,599			76,808			2		3
Core deposits ⁽²⁾	74,882			76,094			74,190			(2	)	1
Total deposits	89,500			84,340			82,741			6		8
Long-term debt	11,843			12,349			8,856			(4	)	34
MUAH stockholder's equity	15,758			15,461			15,182			2		4

____________________________________

Refer to Exhibit 12 for footnote explanations.



	2

Summary of First Quarter Results

First Quarter Total Revenue

For the first quarter of 2016, total revenue (net interest income plus noninterest income) was $1.1 billion, down $29 million from the fourth quarter of 2015. Net interest income for the first quarter of 2016 was $697 million, down $11 million compared with the fourth quarter of 2015. The net interest margin decreased 3 basis points to 2.69%. Average total deposits were $84.0 billion, flat compared with the fourth quarter of 2015.

For the first quarter of 2016, noninterest income was $395 million, down $18 million, or 4%, compared with the fourth quarter of 2015, largely due to losses and impairments on oil and gas related private equity investments, partially offset by gains on sales of available for sale securities.

Compared with the first quarter of 2015, total revenue increased $74 million, substantially due to an increase in fees from affiliates and a decrease in FDIC indemnification asset amortization expense.

First Quarter Noninterest Expense

Noninterest expense for the first quarter of 2016 was $876 million, down $15 million compared with the fourth quarter of 2015 and up $27 million from the first quarter of 2015. The decrease from the fourth quarter of 2015 was due primarily to a decrease in expenses associated with the realignment of the Company's business model which occurred in October 2015. This decrease was partially offset by an increase in professional and outside service fees.

Compared with the first quarter of 2015, the increase in noninterest expense was largely due to higher professional and outside service fees, software expense and impairments on certain fixed assets, partially offset by a decrease in salaries and benefits expense.

The effective tax rate for the first quarter of 2016 was 31.5%, compared with an effective tax rate of negative 47.4% for the fourth quarter of 2015. Income tax expense recorded in the fourth quarter included an adjustment to align estimated expense with actual full year 2015 results.



	3

Business Integration Initiative- First Quarter Summary Impact⁽¹⁴⁾

For the quarters ended March 31, 2016, December 31, 2015 and March 31, 2015, the Company recorded the following fee income and costs related to support services:



	For the Three Months Ended
(Dollars in millions)	March 31, 2016		December 31, 2015		March 31, 2015

Fees from affiliates - support services	$	149	$	149	$	121

Staff costs associated with fees from
affiliates - support services	$	139	$	138	$	112

__________________________

Refer to Exhibit 12 for footnote explanations.

The Company also recognized fees from affiliates through revenue sharing agreements with BTMU for various business and banking services.

Balance Sheet

At March 31, 2016, total assets were $120.9 billion, up $4.7 billion from the prior quarter primarily due to an increase in net loans held for investment as a result of growth in commercial mortgage and consumer & industrial loans, partially offset by a decrease in securities as a result of sales within the portfolio. Cash and cash equivalents and total deposits were up $3.8 billion and $5.2 billion, respectively, compared with the prior quarter-end. The increases were due primarily to a single short-term deposit at quarter-end. Core deposits were down $1.2 billion, compared with the prior quarter-end substantially due to declines in deposits within our transaction banking segment.



	4

Credit Quality

The following table presents credit quality data for the quarters ended March 31, 2016, December 31, 2015 and March 31, 2015:




	As of and for the Three Months Ended
(Dollars in millions)	March 31, 2016			December 31, 2015			March 31, 2015

Total provision for credit losses	$	162		$	192		$	3
Net loans charged-off (recovered)	4			(6		)	3
Nonaccrual loans	956			552			361
Criticized loans held for investment ⁽¹²⁾	3,066			2,454			1,327

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	1.11		%	0.93		%	0.69		%
Nonaccrual loans	91.99			130.53			147.21
Allowance for credit losses to ⁽¹³⁾:
Total loans held for investment	1.32			1.14			0.90
Nonaccrual loans	109.68			160.42			191.20
Nonaccrual loans to total loans held for investment	1.21			0.71			0.47

____________________________________

Refer to Exhibit 12 for footnote explanations.

In the first quarter of 2016, the provision for credit losses was $162 million, compared with a provision of $192 million for the fourth quarter of 2015 and a provision of $3 million for the first quarter of 2015. The provision in the first quarter of 2016 was substantially due to continued low commodities prices, which has resulted in negative credit migration in the oil and gas sector of our loan portfolio, primarily within petroleum exploration and production. As of March 31, 2016, our oil and gas loan portfolio was comprised of 81% petroleum exploration and production companies, of which 81% were reserve-based loans. Reserve-based lending typically consists of loans collateralized with oil and gas reserves.

The following tables provide further information about our petroleum exploration and production loan portfolio:




	As of
(Dollars in millions)	March 31, 2016		December 31, 2015		September 30, 2015
Petroleum Exploration and Production:
Loan commitments	$	5,519	$	5,768	$	6,147
Loans outstanding	3,080		2,943		3,155
Criticized commitments	2,701		2,156		838
Criticized outstanding	1,705		1,226		670
Allowance for credit losses	415		319		127
Allowance for loan losses	386		291		114



	5

Capital

The following table presents capital ratio data as of March 31, 2016 and December 31, 2015:



	March 31, 2016		December 31, 2015

Capital ratios:

Regulatory:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(8) (9)}	13.33	%	13.63	%
Tier 1 risk-based capital ratio ^{(8) (9)}	13.33		13.64
Total risk-based capital ratio ^{(8) (9)}	15.32		15.56
Tier 1 leverage ratio ^{(8) (9)}	11.41		11.40

Other:
Tangible common equity ratio ⁽¹⁰⁾	10.55	%	10.71	%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(8) (11)}	13.31		13.46

____________________________________

Refer to Exhibit 12 for footnote explanations.

The Company’s stockholder’s equity was $15.8 billion at March 31, 2016, compared with $15.5 billion at December 31, 2015.

The Company's preliminary Common Equity Tier 1, Tier 1 and Total risk-based capital ratios, calculated in accordance with U.S. Basel III regulatory capital rules, were 13.33%, 13.33% and 15.32%, respectively, at March 31, 2016. The tangible common equity ratio was 10.55% at March 31, 2016.

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 13.31% at March 31, 2016.

Formation of the U.S. Intermediate Holding Company

To comply with the final rules regarding enhanced prudential standards for large foreign banking organizations operating in the U.S. effective July 1, 2016, Mitsubishi UFJ Financial Group, Inc. (MUFG) announced in the first quarter of 2016 that it designated the Company as its U.S. intermediate holding company through which the ownership of MUFG's U.S. subsidiaries will be held. These subsidiaries include the Bank, Mitsubishi UFJ Securities (USA), Inc., a broker-dealer, and various other non-bank subsidiaries.



	6

Non-GAAP Financial Measures

This press release includes additional capital ratios (tangible common equity and Common Equity Tier 1 capital (calculated under the Basel III standardized approach on a fully phased-in basis)) 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 that of 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. Please refer to our separate reconciliation of non-GAAP financial measures in our financial supplement.

About MUFG Americas Holdings Corporation

Headquartered in New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with total assets of $120.9 billion at March 31, 2016. 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 March 31, 2016, MUFG Union Bank, N.A. operated 370 branches, comprised primarily of retail banking branches in the West Coast states, along with commercial 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 leading financial groups. Visit www.unionbank.com for more information.

###



	7

MUFG Americas Holdings Corporation and Subsidiaries

Financial Highlights (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															March 31, 2016 from
(Dollars in millions)	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2015		March 31, 2015
Results of operations:
Net interest income	$	697		$	708		$	705		$	719		$	683		(2	)%	2	%
Noninterest income	395			413			397			385			335			(4	)	18
Total revenue	1,092			1,121			1,102			1,104			1,018			(3	)	7
Noninterest expense	876			891			855			843			849			(2	)	3
Pre-tax, pre-provision income ⁽¹⁾	216			230			247			261			169			(6	)	28
Provision for credit losses	162			192			18			15			3			(16	)	nm
Income before income taxes and including
noncontrolling interests	54			38			229			246			166			42		(67	)
Income tax expense	17			(18		)	64			71			34			194		(50	)
Net income including noncontrolling interests	37			56			165			175			132			(34	)	(72	)
Deduct: Net loss from noncontrolling interests	12			13			21			6			5			(8	)	140
Net income attributable to
MUFG Americas Holdings Corporation (MUAH)	$	49		$	69		$	186		$	181		$	137		(29	)	(64	)

Balance sheet (end of period):
Total assets	$	120,909		$	116,216		$	115,157		$	114,266		$	113,698		4		6
Total securities	23,616			24,502			24,696			24,287			22,463			(4	)	5
Total loans held for investment	79,299			77,599			76,641			76,399			76,808			2		3
Core deposits ⁽²⁾	74,882			76,094			74,785			73,080			74,190			(2	)	1
Total deposits	89,500			84,340			82,693			81,702			82,741			6		8
Long-term debt	11,843			12,349			11,357			8,852			8,856			(4	)	34
MUAH stockholder's equity	15,758			15,461			15,603			15,260			15,182			2		4

Balance sheet (period average):
Total assets	$	115,866		$	115,914		$	113,451		$	112,907		$	113,134		—		2
Total securities	23,507			24,351			24,141			22,915			22,172			(3	)	6
Total loans held for investment	78,450			77,832			76,177			76,751			77,305			1		1
Earning assets	104,888			104,966			102,899			102,289			102,645			—		2
Total deposits	84,010			84,033			82,488			82,147			84,088			—		—
MUAH stockholder's equity	15,687			15,722			15,435			15,238			15,069			—		4

Performance ratios:
Return on average assets ⁽³⁾	0.17		%	0.24		%	0.66		%	0.64		%	0.49		%
Return on average MUAH stockholder's equity ⁽³⁾	1.25			1.75			4.83			4.73			3.65
Return on average assets excluding the impact of privatization
transaction and merger costs related to acquisitions ^{(3) (4)}	0.18			0.27			0.70			0.67			0.53
Return on average MUAH stockholder's equity excluding the
impact of privatization transaction and merger costs related to
acquisitions ^{(3) (4)}	1.54			2.24			5.82			5.69			4.51
Efficiency ratio ⁽⁵⁾	80.17			79.51			77.62			76.42			83.35
Adjusted efficiency ratio ⁽⁶⁾	72.12			69.42			70.16			69.02			74.90
Net interest margin ^{(3) (7)}	2.69			2.72			2.76			2.84			2.70

Capital ratios:

Regulatory:	U.S. Basel III
Common Equity Tier 1 risk-based capital ratio ^{(8) (9)}	13.33		%	13.63		%	13.84		%	13.56		%	12.64		%
Tier 1 risk-based capital ratio ^{(8) (9)}	13.33			13.64			13.84			13.56			12.64
Total risk-based capital ratio ^{(8) (9)}	15.32			15.56			15.60			15.30			14.41
Tier 1 leverage ratio ^{(8) (9)}	11.41			11.40			11.58			11.46			11.30

Other:
Tangible common equity ratio ⁽¹⁰⁾	10.55		%	10.71		%	10.93		%	10.70		%	10.68		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) ^{(8) (11)}	13.31			13.46			13.79			13.49			12.57

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 1

MUFG Americas Holdings Corporation and Subsidiaries

Credit Quality (Unaudited)



																Percent Change to
	As of and for the Three Months Ended															March 31, 2016 from
(Dollars in millions)	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2015		March 31, 2015

Credit Data:
(Reversal of) provision for loan losses	$	158		$	168		$	23		$	26		$	(3	)	(6	)%	nm
(Reversal of) provision for losses on unfunded credit commitments	4			24			(5		)	(11		)	6			(83	)	(33	)%
Total provision for credit losses	$	162		$	192		$	18		$	15		$	3		(16	)	nm

Net loans charged-off (recovered)	$	4		$	(6	)	$	11		$	20		$	3		167		33
Nonperforming assets	974			573			434			381			390			70		150
Criticized loans held for investment ⁽¹²⁾	3,066			2,454			1,642			1,395			1,327			25		131

Credit Ratios:
Allowance for loan losses to:
Total loans held for investment	1.11		%	0.93		%	0.71		%	0.70		%	0.69		%
Nonaccrual loans	91.99			130.53			130.46			147.98			147.21
Allowance for credit losses to ⁽¹³⁾:
Total loans held for investment	1.32			1.14			0.90			0.89			0.90
Nonaccrual loans	109.68			160.42			164.09			188.39			191.20
Net loans charged-off (recovered) to average total loans held for investment ⁽³⁾	0.02			(0.03		)	0.06			0.10			0.01
Nonperforming assets to total loans held for investment and Other Real Estate Owned (OREO)	1.23			0.74			0.57			0.50			0.51
Nonperforming assets to total assets	0.81			0.49			0.38			0.33			0.34
Nonaccrual loans to total loans held for investment	1.21			0.71			0.55			0.47			0.47

________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 2

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)



			For the Three Months Ended
(Dollars in millions)			March 31, 2016		December 31, 2015			September 30, 2015		June 30, 2015		March 31, 2015
Interest Income
	Loans		$	697	$	693		$	688	$	700	$	678
	Securities		109		124			116		121		102
	Other		6		4			5		2		3
		Total interest income	812		821			809		823		783

Interest Expense
	Deposits		49		50			48		50		52
	Commercial paper and other short-term borrowings		1		1			3		2		1
	Long-term debt		65		62			53		52		47
		Total interest expense	115		113			104		104		100

Net Interest Income			697		708			705		719		683
	Provision for credit losses		162		192			18		15		3
		Net interest income after provision for credit losses	535		516			687		704		680

Noninterest Income
	Service charges on deposit accounts		49		49			49		49		49
	Trust and investment management fees		31		28			27		26		28
	Trading account activities		13		21			7		19		8
	Securities gains, net		13		6			6		5		3
	Credit facility fees		27		28			27		30		30
	Merchant banking fees		14		17			22		20		20
	Brokerage commissions and fees		13		14			13		14		13
	Card processing fees, net		9		8			8		9		8
	Fees from affiliates ⁽¹⁴⁾		200		204			185		192		166
	Other, net		26		38			53		21		10
		Total noninterest income	395		413			397		385		335

Noninterest Expense
	Salaries and employee benefits		543		569			557		555		567
	Net occupancy and equipment		76		83			79		75		80
	Professional and outside services		102		82			78		64		77
	Software		36		34			28		29		28
	Regulatory assessments		14		13			11		14		13
	Intangible asset amortization		7		10			10		10		10
	Other		98		100			92		96		74
		Total noninterest expense	876		891			855		843		849

	Income before income taxes and including
	noncontrolling interests		54		38			229		246		166
	Income tax expense		17		(18		)	64		71		34
Net Income including Noncontrolling Interests			37		56			165		175		132
	Deduct: Net loss from noncontrolling interests		12		13			21		6		5
Net Income attributable to MUAH			$	49	$	69		$	186	$	181	$	137

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 3

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)



(Dollars in millions except for per share amount)				March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Assets
Cash and due from banks				$	1,599		$	1,756		$	1,596		$	1,815		$	1,735
Interest bearing deposits in banks				6,696			2,749			2,692			2,160			2,787
Federal funds sold and securities purchased under resale agreements				29			24			86			68			92
		Total cash and cash equivalents		8,324			4,529			4,374			4,043			4,614
Trading account assets				1,370			1,087			1,200			1,089			1,233
Securities available for sale				13,011			14,344			14,355			14,285			13,338
Securities held to maturity				10,605			10,158			10,341			10,002			9,125
Loans held for investment				79,299			77,599			76,641			76,399			76,808
	Allowance for loan losses			(879		)	(721		)	(547		)	(536		)	(530		)
		Loans held for investment, net		78,420			76,878			76,094			75,863			76,278
Premises and equipment, net				632			608			607			622			623
Goodwill				3,225			3,225			3,225			3,225			3,225
Other assets				5,322			5,387			4,961			5,137			5,262
			Total assets	$	120,909		$	116,216		$	115,157		$	114,266		$	113,698

Liabilities
Deposits:
	Noninterest bearing			$	38,556		$	32,463		$	31,869		$	30,156		$	29,854
	Interest bearing			50,944			51,877			50,824			51,546			52,887
		Total deposits		89,500			84,340			82,693			81,702			82,741
Commercial paper and other short-term borrowings				647			1,038			2,338			5,262			3,475
Long-term debt				11,843			12,349			11,357			8,852			8,856
Trading account liabilities				747			796			891			734			944
Other liabilities				2,203			2,017			2,044			2,216			2,250
			Total liabilities	104,940			100,540			99,323			98,766			98,266

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 March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015		136			136			136			136			136
	Additional paid-in capital			7,250			7,241			7,224			7,208			7,241
	Retained earnings			8,885			8,836			8,768			8,582			8,402
	Accumulated other comprehensive loss			(513		)	(752		)	(525		)	(666		)	(597		)
			Total MUAH stockholder's equity	15,758			15,461			15,603			15,260			15,182
Noncontrolling interests				211			215			231			240			250
			Total equity	15,969			15,676			15,834			15,500			15,432
			Total liabilities and equity	$	120,909		$	116,216		$	115,157		$	114,266		$	113,698

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 4

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	March 31, 2016							December 31, 2015
				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: ⁽¹⁵⁾
Commercial and industrial	$	29,957		$	253	3.40	%	$	29,720		$	255	3.40		%
Commercial mortgage	14,485			122		3.36		13,997			115		3.29
Construction	2,272			19		3.28		2,210			17		2.99
Lease financing	732			8		4.56		748			10		5.56
Residential mortgage	27,366			231		3.38		27,622			234		3.39
Home equity and other consumer loans	3,315			40		4.85		3,171			37		4.57
Loans, before purchased credit-impaired loans	78,127			673		3.46		77,468			668		3.43
Purchased credit-impaired loans	323			25		31.04		364			27		30.30
Total loans held for investment	78,450			698		3.57		77,832			695		3.56
Securities	23,507			115		1.95		24,351			129		2.12
Interest bearing deposits in banks	2,400			3		0.53		2,455			2		0.28
Federal funds sold and securities purchased under resale agreements	78			—		0.46		85			—		(0.08	)
Trading account assets	162			—		0.57		157			—		0.58
Other earning assets	291			3		3.62		86			2		5.02
Total earning assets	104,888			819		3.13		104,966			828		3.14
Allowance for loan losses	(719		)					(552		)
Cash and due from banks	1,704							1,805
Premises and equipment, net	608							601
Other assets ⁽¹⁶⁾	9,385							9,094
Total assets	$	115,866						$	115,914
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	38,397		28		0.30		$	38,154		27		0.28
Savings	5,715			1		0.06		5,670			1		0.06
Time	7,577			20		1.08		7,671			22		1.14
Total interest bearing deposits	51,689			49		0.38		51,495			50		0.39
Commercial paper and other short-term borrowings ⁽¹⁷⁾	1,098			1		0.37		1,290			1		0.28
Long-term debt	12,148			65		2.12		12,063			62		2.04
Total borrowed funds	13,246			66		1.98		13,353			63		1.87
Total interest bearing liabilities	64,935			115		0.71		64,848			113		0.69
Noninterest bearing deposits	32,321							32,538
Other liabilities ⁽¹⁸⁾	2,745							2,613
Total liabilities	100,001							99,999
Equity
MUAH stockholder's equity	15,687							15,722
Noncontrolling interests	178							193
Total equity	15,865							15,915
Total liabilities and equity	$	115,866						$	115,914

Net interest income/spread (taxable-equivalent basis)				704		2.42	%				715		2.45		%
Impact of noninterest bearing deposits						0.23							0.23
Impact of other noninterest bearing sources						0.04							0.04
Net interest margin						2.69							2.72
Less: taxable-equivalent adjustment				7							7
Net interest income				$	697						$	708

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 5

MUFG Americas Holdings Corporation and Subsidiaries

Net Interest Income (Unaudited)



	For the Three Months Ended
	March 31, 2016							March 31, 2015
				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: ⁽¹⁵⁾
Commercial and industrial	$	29,957		$	253	3.40	%	$	28,394		$	223	3.18	%
Commercial mortgage	14,485			122		3.36		13,903			115		3.31
Construction	2,272			19		3.28		1,853			14		3.03
Lease financing	732			8		4.56		776			10		5.11
Residential mortgage	27,366			231		3.38		28,766			247		3.43
Home equity and other consumer loans	3,315			40		4.85		3,103			32		4.22
Loans, before purchased credit-impaired loans	78,127			673		3.46		76,795			641		3.36
Purchased credit-impaired loans	323			25		31.04		510			38		30.49
Total loans held for investment	78,450			698		3.57		77,305			679		3.54
Securities	23,507			115		1.95		22,172			106		1.92
Interest bearing deposits in banks	2,400			3		0.53		2,776			2		0.25
Federal funds sold and securities purchased under resale agreements	78			—		0.46		97			—		—
Trading account assets	162			—		0.57		196			—		0.70
Other earning assets	291			3		3.62		99			1		2.07
Total earning assets	104,888			819		3.13		102,645			788		3.09
Allowance for loan losses	(719		)					(542		)
Cash and due from banks	1,704							1,631
Premises and equipment, net	608							621
Other assets ⁽¹⁶⁾	9,385							8,779
Total assets	$	115,866						$	113,134
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	38,397		28		0.30		$	39,713		30		0.31
Savings	5,715			1		0.06		5,550			1		0.06
Time	7,577			20		1.08		8,975			21		0.93
Total interest bearing deposits	51,689			49		0.38		54,238			52		0.39
Commercial paper and other short-term borrowings ⁽¹⁷⁾	1,098			1		0.37		2,991			1		0.20
Long-term debt	12,148			65		2.12		8,008			47		2.34
Total borrowed funds	13,246			66		1.98		10,999			48		1.76
Total interest bearing liabilities	64,935			115		0.71		65,237			100		0.62
Noninterest bearing deposits	32,321							29,850
Other liabilities ⁽¹⁸⁾	2,745							2,750
Total liabilities	100,001							97,837
Equity
MUAH stockholder's equity	15,687							15,069
Noncontrolling interests	178							228
Total equity	15,865							15,297
Total liabilities and equity	$	115,866						$	113,134

Net interest income/spread (taxable-equivalent basis)				704		2.42	%				688		2.47	%
Impact of noninterest bearing deposits						0.23							0.19
Impact of other noninterest bearing sources						0.04							0.04
Net interest margin						2.69							2.70
Less: taxable-equivalent adjustment				7							5
Net interest income				$	697						$	683

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 6

MUFG Americas Holdings Corporation and Subsidiaries

Loans and Nonperforming Assets (Unaudited)



(Dollars in millions)					March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015

Loans held for investment (period end)
	Loans held for investment:
		Commercial and industrial			$	30,212	$	29,730	$	28,462	$	27,854	$	27,979
		Commercial mortgage			14,920		13,904		13,943		13,800		13,923
		Construction			2,251		2,297		2,120		2,071		1,996
		Lease financing			732		737		748		759		776
			Total commercial portfolio		48,115		46,668		45,273		44,484		44,674

		Residential mortgage			27,495		27,344		27,856		28,374		28,558
		Home equity and other consumer loans			3,385		3,251		3,124		3,098		3,081
			Total consumer portfolio		30,880		30,595		30,980		31,472		31,639
				Loans held for investment, before purchased credit-impaired loans	78,995		77,263		76,253		75,956		76,313
		Purchased credit-impaired loans			304		336		388		443		495

				Total loans held for investment	$	79,299	$	77,599	$	76,641	$	76,399	$	76,808

Nonperforming Assets (period end)
	Nonaccrual loans:
		Commercial and industrial			$	702	$	284	$	138	$	64	$	52
		Commercial mortgage			30		37		40		43		40
			Total commercial portfolio		732		321		178		107		92

		Residential mortgage			186		190		201		209		221
		Home equity and other consumer loans			32		35		32		36		39
			Total consumer portfolio		218		225		233		245		260

				Nonaccrual loans, before purchased credit-impaired loans	950		546		411		352		352
		Purchased credit-impaired loans			6		6		8		10		9
				Total nonaccrual loans	956		552		419		362		361

	OREO				18		21		15		19		29

				Total nonperforming assets	$	974	$	573	$	434	$	381	$	390

	Loans 90 days or more past due and still accruing ⁽¹⁹⁾				$	6	$	2	$	4	$	2	$	4

__________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 7

MUFG Americas Holdings Corporation and Subsidiaries

Allowance for Credit Losses (Unaudited)



	As of and for the Three Months Ended
(Dollars in millions)	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015

Analysis of Allowance for Credit Losses
Allowance for loan losses, beginning of period	$	721		$	547		$	536		$	530		$	537
(Reversal of) provision for loan losses	158			168			23			26			(3		)
Other	4			—			(1		)	—			(1		)
Loans charged-off:
Commercial and industrial	(8		)	—			(11		)	(12		)	(1		)
Commercial mortgage	—			—			—			(1		)	(3		)
Total commercial portfolio	(8		)	—			(11		)	(13		)	(4		)
Residential mortgage	1			—			—			—			(1		)
Home equity and other consumer loans	(2		)	(1		)	(1		)	(3		)	(2		)
Total consumer portfolio	(1		)	(1		)	(1		)	(3		)	(3		)
Purchased credit-impaired loans	—			(1		)	(3		)	(8		)	—
Total loans charged-off	(9		)	(2		)	(15		)	(24		)	(7		)
Recoveries of loans previously charged-off:
Commercial and industrial	1			7			2			3			4
Commercial mortgage	3			—			1			—			—
Total commercial portfolio	4			7			3			3			4
Home equity and other consumer loans	1			—			1			1			—
Total consumer portfolio	1			—			1			1			—
Purchased credit-impaired loans	—			1			—			—			—
Total recoveries of loans previously charged-off	5			8			4			4			4
Net loans (charged-off) recovered	(4		)	6			(11		)	(20		)	(3		)

Ending balance of allowance for loan losses	879			721			547			536			530
Allowance for losses on unfunded credit commitments	169			165			141			147			158
Total allowance for credit losses	$	1,048		$	886		$	688		$	683		$	688



	Exhibit 8

MUFG Americas Holdings Corporation and Subsidiaries

Securities (Unaudited)



Securities Available for Sale

			March 31, 2016				December 31, 2015				Fair Value			Fair Value
			Amortized		Fair		Amortized		Fair		Change from			% Change from
(Dollars in millions)			Cost		Value		Cost		Value		December 31, 2015			December 31, 2015
Asset Liability Management securities:
U.S. Treasury			$	148	$	152	$	596	$	594	$	(442	)	(74	)%
Residential mortgage-backed securities:
	U.S. government agency and government-sponsored agencies		6,302		6,308		7,298		7,201		(893		)	(12	)
	Privately issued		202		203		150		151		52			34
Privately issued - commercial mortgage-backed securities			1,469		1,492		1,566		1,546		(54		)	(3	)
Collateralized loan obligations			3,267		3,227		3,266		3,233		(6		)	—
Asset-backed and other			7		7		7		7		—			—
		Asset Liability Management securities	11,395		11,389		12,883		12,732		(1,343		)	(11	)
Other debt securities:
Direct bank purchase bonds			1,560		1,581		1,549		1,572		9			1
Other			32		33		32		32		1			3
Equity securities			6		8		6		8		—			—
		Total securities available for sale	$	12,993	$	13,011	$	14,470	$	14,344	$	(1,333	)	(9	)%

Securities Held to Maturity

			March 31, 2016				December 31, 2015				Carrying Amount			Carrying Amount
			Carrying		Fair		Carrying		Fair		Change from			% Change from
(Dollars in millions)			Amount ⁽²⁰⁾		Value		Amount ⁽²⁰⁾		Value		December 31, 2015			December 31, 2015
U.S. Treasury			$	490	$	502	$	489	$	493	$	1		—	%
U.S. government-sponsored agencies			200		200		220		216		(20		)	(9	)
U.S. government agency and government-sponsored agencies-residential mortgage-backed securities			8,254		8,403		7,782		7,790		472			6
U.S. government agency and government-sponsored agencies-commercial mortgage-backed securities			1,661		1,743		1,667		1,708		(6		)	—
		Total securities held to maturity	$	10,605	$	10,848	$	10,158	$	10,207	$	447		4	%

___________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 9

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
(Dollars in millions)		March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Net income attributable to MUAH		$	49		$	69		$	186		$	181		$	137
Net adjustments for merger costs related to acquisitions, net of tax		4			4			5			3			6
Net adjustments for privatization transaction, net of tax		—			4			3			3			3
Net income attributable to MUAH, excluding impact of
	privatization transaction and merger costs related to acquisitions	$	53		$	77		$	194		$	187		$	146

Average total assets		$	115,866		$	115,914		$	113,451		$	112,907		$	113,134
Less: Net adjustments related to privatization transaction		2,215			2,218			2,224			2,230			2,235
Average total assets, excluding impact of privatization transaction		$	113,651		$	113,696		$	111,227		$	110,677		$	110,899
Return on average assets ⁽³⁾		0.17		%	0.24		%	0.66		%	0.64		%	0.49		%
Return on average assets, excluding impact of privatization
	transaction and merger costs related to acquisitions^{(3) (4)}	0.18			0.27			0.70			0.67			0.53

Average MUAH stockholder's equity		$	15,687		$	15,722		$	15,435		$	15,238		$	15,069
Less: Adjustments for merger costs related to acquisitions		(183		)	(179		)	(175		)	(171		)	(167		)
Less: Net adjustments for privatization transaction		2,273			2,273			2,273			2,275			2,276
Average MUAH stockholder's equity, excluding impact of privatization
	transaction and merger costs related to acquisitions	$	13,597		$	13,628		$	13,337		$	13,134		$	12,960
Return on average MUAH stockholder's equity ⁽³⁾		1.25		%	1.75		%	4.83		%	4.73		%	3.65		%
Return on average MUAH stockholder's equity, excluding impact of
	privatization transaction and merger costs related to acquisitions^{(3) (4)}	1.54			2.24			5.82			5.69			4.51

Noninterest expense		$	876		$	891		$	855		$	843		$	849
Less: Staff costs associated with fees from affiliates - support services		139			138			128			123			112
Less: Foreclosed asset expense and other credit costs		(1		)	—			3			—			1
Less: Productivity initiative costs		12			41			3			2			28
Less: Low income housing credit (LIHC) investment amortization expense		2			6			5			2			2
Less: Expenses of the LIHC consolidated VIEs		12			13			14			10			9
Less: Merger and business integration costs		5			6			8			6			9
Less: Net adjustments related to privatization transaction		5			8			8			7			8
Less: Intangible asset amortization		3			3			2			3			3
Less: Contract termination fee		—			—			—			23			—
	Noninterest expense, as adjusted (a)	$	699		$	676		$	684		$	667		$	677

Total revenue		$	1,092		$	1,121		$	1,102		$	1,104		$	1,018
Add: Net interest income taxable-equivalent adjustment		7			7			7			6			5
Less: Fees from affiliates - support services		149			149			138			134			121
Less: Productivity initiative gains		—			—			—			(1		)	1
Less: Accretion related to privatization-related fair value adjustments		5			2			3			2			1
Less: Other credit costs		(13		)	4			(8		)	8			(4		)
Less: Impairment on private equity investments		(12		)	—			—			—			—
	Total revenue, as adjusted (b)	$	970		$	973		$	976		$	967		$	904
Adjusted efficiency ratio (a)/(b) ⁽⁶⁾		72.12		%	69.42		%	70.16		%	69.02		%	74.90		%

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 10

MUFG Americas Holdings Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures (Unaudited)



		As of and for the Three Months Ended
(Dollars in millions)		March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Total MUAH stockholder's equity		$	15,758		$	15,461		$	15,603		$	15,260		$	15,182
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except mortgage servicing rights (MSRs)		182			190			199			214			222
Less: Deferred tax liabilities related to goodwill and intangible assets		(49		)	(39		)	(39		)	(41		)	(40		)
	Tangible common equity (c)	$	12,400		$	12,085		$	12,218		$	11,862		$	11,775
Total assets		$	120,909		$	116,216		$	115,157		$	114,266		$	113,698
Less: Goodwill		3,225			3,225			3,225			3,225			3,225
Less: Intangible assets, except MSRs		182			190			199			214			222
Less: Deferred tax liabilities related to goodwill and intangible assets		(49		)	(39		)	(39		)	(41		)	(40		)
	Tangible assets (d)	$	117,551		$	112,840		$	111,772		$	110,868		$	110,291
Tangible common equity ratio (c)/(d) ⁽¹⁰⁾		10.55		%	10.71		%	10.93		%	10.70		%	10.68		%

Common Equity Tier 1 capital under U.S. Basel III (standardized transitional) (e)		$	12,936		$	12,920		$	12,834		$	12,632		$	12,480
Other		(43		)	(61		)	(67		)	(74		)	(80		)
	Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (f)	$	12,893		$	12,859		$	12,767		$	12,558		$	12,400
Risk-weighted assets, estimated under U.S. Basel III (standardized transitional) (g)		$	97,011		$	94,775		$	92,729		93,179			$	98,723
Add: Adjustments		(122		)	756			(160		)	(67		)	(74		)
	Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased-in) (h)	$	96,889		$	95,531		$	92,569		$	93,112		$	98,649
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized approach; fully phased-in) (f)/(h) ^{(8) (11)}		13.31		%	13.46		%	13.79		%	13.49		%	12.57

____________________________________________

Refer to Exhibit 12 for footnote explanations.



	Exhibit 11

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 credit losses through a credit cycle.


(2)	Core deposits exclude brokered deposits, foreign time deposits, domestic time deposits greater than $250,000 and certain other deposits not considered to be core customer relationships.


(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 Exhibit 10 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, certain costs related to productivity initiatives, LIHC investment amortization expense, expenses of the LIHC consolidated variable interest entities, merger and business integration costs, privatization-related expenses, intangible asset amortization, and a contract termination fee) 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, productivity initiatives related to the sale of certain premises, accretion related to privatization-related fair value adjustments, other credit costs and impairment on private equity investments. 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 Exhibit 10 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%.


(8)	Preliminary as of March 31, 2016.


(9)	These capital ratios are calculated in accordance with the transition guidelines set forth in the U.S. federal banking agencies' final U.S. Basel III regulatory capital rules.

(10)

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 11 for a reconciliation between certain GAAP amounts and these non-GAAP measures.

(11)

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 excludes accumulated other comprehensive loss, along with other measures of capital as part of its financial analyses and has included this non-GAAP information because of current interest in such information by market participants. Please refer to Exhibit 11 for a reconciliation between certain GAAP amounts and these non-GAAP measures.


(12)	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.


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


(14)	Fees from affiliates represent income resulting from the business integration initiative effective July 1, 2014, whereby BTMU integrated its U.S. branch banking operations, including its employees, under the Bank's operations. The Bank and BTMU participate in a master services agreement whereby the Bank provides BTMU with support services in exchange for fee income.


(15)	Average balances on loans held for investment include all nonaccrual loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.


(16)	Includes noninterest bearing trading account assets.


(17)	Includes interest bearing trading liabilities.


(18)	Includes noninterest bearing trading account liabilities.

(19)

Excludes loans totaling $28 million, $16 million, $30 million, $36 million, and $52 million that are 90 days or more past due and still accruing at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, 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 12