EX-99.3 5 a8kaex993.htm EXHIBIT 99.3 Exhibit



EXHIBIT 99.3

PRO FORMA MUFG AMERICAS HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 AND THE THREE MONTHS ENDED MARCH 31, 2016 AND CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2016

Introduction
On June 30, 2016, MUFG Americas Holdings Corporation ("MUAH") entered into a definitive contribution agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”), a Japanese banking entity, and Mitsubishi UFJ Financial Group, Inc. (“MUFG”), a joint stock corporation incorporated under the laws of Japan, in order to fulfill the requirements of the Federal Reserve Board’s Enhanced Prudential Standards rules for foreign banking organizations (“EPS Rules”). Under the EPS Rules, MUFG designated MUAH as its U.S. intermediate holding company (“IHC”) and MUFG and BTMU transferred substantially all interests in their U.S. subsidiaries to the IHC effective July 1, 2016. The entities contributed to MUAH (“the Acquired Entities”) consist of MUFG Securities Americas Inc. (formerly Mitsubishi UFJ Securities (USA), Inc.), MUFG Fund Services (USA) LLC, BTMU Capital Corporation, BTMU Securities, Inc. and MUFG Americas Capital Company.
The unaudited pro forma condensed consolidated statements of income and balance sheet (pro forma financial statements) combine the historical consolidated financial statements of MUAH and the financial statements of the Acquired Entities to illustrate the potential effect of the acquisitions. The Acquired Entities were previously directly or indirectly owned by MUFG or BTMU.

Adjustments and Assumptions

The pro forma financial statements have been derived by the application of intercompany eliminations ("pro forma adjustments") to the historical consolidated financial statements of MUAH. No additional purchase price adjustments were required as the acquisitions constitute a reorganization of entities under common control. The pro forma condensed consolidated statements of income for the years ended December 31, 2015, 2014 and 2013 and three months ended March 31, 2016, and condensed consolidated balance sheet as of March 31, 2016 give effect to the acquisitions as if they had occurred on January 1, 2013. The adjustments are based on currently available information and certain estimates and assumptions and therefore the actual effects of these transactions may differ from the pro forma adjustments.




























MUFG AMERICAS HOLDINGS CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


For the Three Months Ended March 31, 2016

(Dollars in millions)
 
MUAH
 
ACQUIRED ENTITIES
 
PRO FORMA ADJUSTMENTS (1)
 
PRO FORMA CONSOLIDATED
Net Interest Income
 
$
697

 
$
26

 
$
—

 
$
723

(Reversal of) provision for loan losses
 
162

 
—

 
—

 
162

Net interest income after (reversal of) provision for loan losses
 
535

 
26

 
—

 
561

Noninterest Income
 
395

 
85

 
(6
)
 
474

Noninterest Expense
 
876

 
99

 
(6
)
 
969

Income before income taxes and including noncontrolling interests
 
54

 
12

 
—

 
66

Income tax expense
 
17

 
1

 
—

 
18

Net income including noncontrolling interests
 
37

 
11

 
—

 
48

Deduct: Net loss from noncontrolling interests

 
12

 
—

 
—

 
12

Net income attributable to MUAH
 
$
49

 
$
11

 
$
—

 
$
60


(1) Intercompany eliminations



For the Year Ended December 31, 2015

(Dollars in millions)
 
MUAH
 
ACQUIRED ENTITIES
 
PRO FORMA ADJUSTMENTS (1)
 
PRO FORMA CONSOLIDATED
Net Interest Income
 
$
2,815

 
$
75

 
$
—

 
$
2,890

(Reversal of) provision for loan losses
 
228

 
—

 
—

 
228

Net interest income after (reversal of) provision for loan losses
 
2,587

 
75

 
—

 
2,662

Noninterest Income
 
1,530

 
359

 
(49
)
 
1,840

Noninterest Expense
 
3,438

 
346

 
(49
)
 
3,735

Income before income taxes and including noncontrolling interests
 
679

 
88

 
—

 
767

Income tax expense
 
151

 
18

 
—

 
169

Net Income including noncontrolling interests
 
528

 
70

 
—

 
598

Deduct: Net loss from noncontrolling interests
 
45

 
—

 
—

 
45

Net income attributable to MUAH
 
$
573

 
$
70

 
$
—

 
$
643


(1) Intercompany eliminations





MUFG AMERICAS HOLDINGS CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


For the Year Ended December 31, 2014

(Dollars in millions)
 
MUAH
 
ACQUIRED ENTITIES
 
PRO FORMA ADJUSTMENTS (1)
 
PRO FORMA CONSOLIDATED
Net Interest Income
 
$
2,862

 
$
43

 
$
—

 
$
2,905

(Reversal of) provision for loan losses
 
6

 
3

 
—

 
9

Net interest income after (reversal of) provision for loan losses
 
2,856

 
40

 
—

 
2,896

Noninterest Income
 
1,123

 
378

 
(30
)
 
1,471

Noninterest Expense
 
2,823

 
463

 
(30
)
 
3,256

Income before income taxes and including noncontrolling interests
 
1,156

 
(45
)
 
—

 
1,111

Income tax expense (benefit)
 
359

 
(11
)
 
—

 
348

Net Income (loss) including noncontrolling interests
 
797

 
(34
)
 
—

 
763

Deduct: Net loss from noncontrolling interests
 
19

 
—

 
—

 
19

Net income attributable to MUAH
 
$
816

 
$
(34
)
 
$
—

 
$
782


(1) Intercompany eliminations




For the Year Ended December 31, 2013

(Dollars in millions)
 
MUAH
 
ACQUIRED ENTITIES
 
PRO FORMA ADJUSTMENTS (1)
 
PRO FORMA CONSOLIDATED
Net Interest Income
 
$
2,716

 
$
—

 
$
—

 
$
2,716

(Reversal of) provision for loan losses
 
(29
)
 
(5
)
 
—

 
(34
)
Net interest income after (reversal of) provision for loan losses
 
2,745

 
5

 
—

 
2,750

Noninterest Income
 
876

 
638

 
(22
)
 
1,492

Noninterest Expense
 
2,713

 
469

 
(22
)
 
3,160

Income before income taxes and including noncontrolling interests
 
908

 
174

 
—

 
1,082

Income tax expense
 
279

 
72

 
—

 
351

Net Income including noncontrolling interests
 
629

 
102

 
—

 
731

Deduct: Net loss from noncontrolling interests
 
18

 
—

 
—

 
18

Net income attributable to MUAH
 
$
647

 
$
102

 
$
—

 
$
749


(1) Intercompany eliminations


















MUFG AMERICAS HOLDINGS CORPORATION
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
As of March 31, 2016

(Dollars in millions)
 
MUAH
 
ACQUIRED ENTITIES
 
PRO FORMA ADJUSTMENTS (1)
 
PRO FORMA CONSOLIDATED
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
8,295

 
$
322

 
$
(40
)
 
$
8,577

Securities borrowed and securities purchased under agreements to resell
 
29

 
28,082

 
—

 
28,111

Trading account assets
 
1,370

 
4,288

 
—

 
5,658

Securities
 
23,616

 
83

 
—

 
23,699

Loans held for investment, net
 
78,420

 
1,606

 
—

 
80,026

Other assets
 
9,179

 
1,351

 
(10
)
 
10,520

Total assets
 
$
120,909

 
$
35,732

 
$
(50
)
 
$
156,591

Liabilities
 
 
 
 
 
 
 
 
Deposits
 
$
89,500

 
$
—

 
$
(40
)
 
$
89,460

Commercial paper and other short-term borrowings
 
647

 
3,150

 
—

 
3,797

Securities loaned and securities sold under agreements to repurchase
 
—

 
27,209

 
—

 
27,209

Long-term debt
 
11,843

 
609

 
—

 
12,452

Other liabilities
 
2,950

 
3,840

 
(10
)
 
6,780

Total liabilities
 
104,940

 
34,808

 
(50
)
 
139,698

Stockholders' Equity

 
15,969

 
924

 
—

 
16,893

Total liabilities and equity
 
$
120,909

 
$
35,732

 
$
(50
)
 
$
156,591


(1) Intercompany eliminations