MUFG Americas Holdings
Corporation
MUFG Americas Holdings Corporation
Investor Presentation for the Quarter Ended
September 30, 2016
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
This presentation describes activities of MUFG Americas Holdings Corporation and its consolidated subsidiaries (the Company) unless otherwise
specified. This presentation should be read in conjunction with the financial statements, notes and other information contained in the Company’s
most recent annual report on Form 10-K and Quarterly Reports on Forms 10-Q and in any subsequent filings with the Securities and Exchange
Commission (SEC).
The following appears in accordance with the Private Securities Litigation Reform Act. This presentation 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 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 Reports on Forms 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 contained herein are based on information available at the time of this
presentation, and the Company assumes no obligation to update any forward-looking statements.
This investor presentation 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 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 earnings release dated
October 24, 2016 and our 10-Q for the quarter ended September 30, 2016.
Forward-Looking Statements and Non-GAAP Financial Measures
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
One of the Largest Regional Bank Holding Companies in the United States
Headquarters New York
Main Banking Office San Francisco
U.S. Branches3 366
Employees4 Approx. 12,300
Total Assets $151.1 billion
Total Loans Held for Investment $79.2 billion
Total Deposits $84.6 billion
Tangible Common Equity5 $14.0 billion
3. In addition, MUB has two international offices
4. Full-time equivalent staff
5. Tangible common equity is a non-GAAP measure. Refer to MUAH’s earnings release dated October 24, 2016
and our 10-Q for the quarter ended September 30, 2016 for a reconciliation between certain GAAP amounts and
this non-GAAP measure
MUAH Company Profile as of September 30, 2016 Reference Banks’ Period-End Assets ($bn) 2
MUFG Americas Holdings Corporation (MUAH) (A3 / A / A)1 and its principal subsidiaries MUFG
Union Bank, N.A. (MUB) (A2 / A+ / A)1 and MUFG Securities Americas Inc. (MUSA) (NR / A+ / A)1
are owned by The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and Mitsubishi UFJ Financial
Group, Inc. (MUFG). BTMU is a wholly-owned subsidiary of MUFG.
• Solid balance sheet with high-quality capital base and strong liquidity
• Conservative risk culture resulting in a high quality loan portfolio with strong credit performance
• Network of 366 U.S. retail and commercial branches and two international offices
• Prominent market share in demographically attractive West Coast markets
• Debt issuance by both MUB and MUAH
• In February 2015, MUAH issued $2.2bn of senior notes across 3-, 5- and 10-year maturities
MUB Branch Network
1. Credit ratings represent long-term issuer ratings from Moody’s, S&P, and Fitch Ratings respectively
2. Source: SNL Financial as of November 9, 2016
3. ‘Reference Banks’, referred to throughout this presentation unless otherwise noted, consist of the 13 CCAR-filing public regional
banks, plus the four largest U.S. money center banks (BAC, C, JPM and WFC) not shown here
USB PNC COF BBT STI MUAH CFG FITB KEY MTB RF HBAN CMA ZION
$454
$369 $345
$223 $205
$151 $147 $143 $136 $127 $125 $101 $74 $61
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Core Strategic Subsidiary of Mitsubishi UFJ Financial Group (MUFG)
As of September 30, 2016 (dollars in billions)
Employees3 Approx. 12,300
Total assets $151.1 billion
Total loans held for
investment 79.2 billion
Total deposits 84.6 billion
Common Equity Tier 1
risk-based capital ratio
(fully phased-in)4
13.94%
As of June 30, 2016 (dollars in billions)
Employees Approx. 140,000
Total assets $2,897.6 billion 1
Total loans 1,055.4 billion 1
Total deposits 1,563.4 billion 1
Common Equity Tier 1
risk-based capital ratio
(fully phased-in)2
12.50%
1. JPY denominated amounts converted to USD based on an exchange rate of 102.91 JPY/USD as of June 30, 2016; refer to MUFG’s Investor Relations website (http://www.mufg.jp/english/ir/) for additional information
2. Calculated in accordance with Japanese banking regulations based on information derived from MUFG’s consolidated financial statements prepared in accordance with Japanese GAAP, as required by the JFSA
3. Full-time equivalent staff
4. Common Equity Tier 1 risk-based capital ratio (standardized, fully phased-in basis) is a non-GAAP financial measure that is used to assess a bank holding company's capital position 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. Please refer to our separate reconciliation of non-GAAP financial measures in our earnings release dated October 24, 2016 and our 10-Q for the quarter ended September 30, 2016
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
The enhanced prudential standards require that all foreign banking organizations with at least $50bn in assets transfer
ownership of controlled U.S. subsidiaries to an Intermediate Holding Company (IHC) by July 1, 2016
MUAH is MUFG's Intermediate Holding Company
9/30/16 assets: $116.9bn 9/30/16 assets: $30.5bn 9/30/16 assets: $3.7bn
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
2016 Third Quarter MUAH Results
Except where noted, all financial statements and related information for prior periods have been revised
to include the results of IHC entities transferred under MUAH on July 1, 2016
Compared to the previous quarter, Net Income decreased $74MM
• Primarily due to the provision for credit losses
• Total revenue increased $24MM primarily due to an increase in net interest income
Compared to the year-ago quarter, Net Income increased $72MM
• Primarily due to an increase in total revenue partially offset by an increase in the provision for credit losses
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.
For the Three Months Ended
September 30, June 30, September 30,
(Dollars in millions) 2016 2016 2015
Results of operations:
Net interest income $ 773 $ 754 $ 723
Noninterest income 570 565 450
Total revenue 1,343 1,319 1,173
Noninterest expense 952 906 926
Pre-tax, pre-provision income 1 391 413 247
(Reversal of) provision for credit losses 73 (39) 18
Income before income taxes and including
noncontrolling interests 318 452 229
Income tax expense 97 129 62
Net income including noncontrolling interests 221 323 167
Deduct: Net loss from noncontrolling interests 39 11 21
Net income attributable to MUAH $ 260 $ 334 $ 188
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
MUAH Balance Sheet and Profitability Highlights
1. 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
2. Annualized
3. Net interest margin is presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.
4. The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income
5. Adjusted efficiency ratio is a non-GAAP financial measure. Refer to our separate reconciliation of non-GAAP financial measures in our earnings release dated October 24, 2016 and our 10-Q for the quarter ended September 30, 2016
6. Refer to our separate reconciliation of performance ratios excluding MUSA in our earnings release dated October 24, 2016 and our 10-Q for the quarter ended September 30, 2016
Except where noted, all financial
statements and related information for
prior periods have been revised to
include the results of IHC entities
transferred under MUAH on July 1, 2016
Compared to 2Q 2016:
• Total assets were up largely due to
increases in securities borrowed or
purchased under resale agreements,
trading account assets and total
securities, partially offset by a
decrease in loans held for investment
• Increase in total deposits primarily due
to an increase in noninterest bearing
deposits
• Net interest margin increased due to
higher yields on both securities and
securities borrowed or purchased
under resale agreements, and was
essentially flat excluding MUSA
As of and For the Three Months Ended
September
30, June 30,
September
30,
(Dollars in millions) 2016 2016 2015
Balance sheet (end of period)
Total assets $ 151,099 $ 147,972 $ 151,666
Total loans held for investment 79,249 81,045 78,358
Total securities 24,116 23,188 24,712
Securities borrowed or purchased under repo 21,906 20,363 30,530
Trading account assets 9,405 8,427 3,592
Core deposits 1 77,392 75,296 74,785
Total deposits 84,643 82,652 82,656
Securities loaned or sold under repo 25,582 23,197 28,366
Long-term debt 11,427 11,737 12,661
Trading account liabilities 3,328 3,053 4,155
MUAH stockholders' equity 17,353 17,133 16,499
Performance ratios
Net interest margin 2, 3 2.29% 2.23% 2.10%
Return on average assets 2 0.70 0.89 0.50
Return on MUAH stockholders' equity 2 6.03 7.87 4.66
Return on tangible common equity 2 7.60 9.92 6.10
Efficiency ratio 4 70.88 68.67 78.95
Adjusted efficiency ratio 5 62.46 62.27 72.17
Performance ratios excluding MUSA6
Net interest margin 2, 3 2.72% 2.73% 2.72%
Return on average assets 2 0.78 1.06 0.65
Return on MUAH stockholders' equity 2 5.65 7.74 4.83
Return on tangible common equity 2 7.22 9.86 6.36
Adjusted efficiency ratio 5 61.44 60.80 70.00
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Business Model for Key Segments
Four main divisions: Consumer Banking, Wealth Markets, Commercial Banking and Real
Estate Industries
Two customer segments:
Consumer: West Coast individuals, including high net worth
• Products and services include deposit accounts, mortgages, home equity loans,
consumer loans, credit cards, wealth management and investments
Commercial: Institutional clients and businesses generally with annual revenue up to $500
million in annual revenue.
• Commercial credit products and services include commercial loans, accounts receivable,
inventory, and trade financing primarily to West Coast corporate customers, and real
estate financing to professional real estate investors and developers nationwide
• Non-credit products and services include global treasury management, capital market
solutions, foreign exchange and interest rate risk management products
• Provides commercial lending products, including commercial loans, lines of credit
and project financing to corporate customers with annual revenues greater than $500
million
• Employs an industry-focused strategy including dedicated coverage teams in:
• General Industries
• Power and Utilities
• Oil and Gas
• Telecom and Media
• Technology
• Healthcare and Nonprofit
• Public Finance, and
• Financial Institutions (predominantly Insurance and Asset Managers)
Regional Bank U.S. Wholesale Banking
Investment Banking & Markets
Transaction Banking
• Automated Clearing House
• Cash Management
• Commercial Card
MUFG Securities Americas Inc.
• Capital Markets
• Collateralized Financings
• Domestic and Foreign Debt
and Equity Securities Transactions
Coverag
e
Product
s
• Commercial Finance
• Corporate Advisory
• Foreign Exchange
• Funds Finance
• Global Financial Solutions
• Interest Rate Derivatives
• Project Finance
• Securitization
• Structured Trade Finance
• Supply Chain Finance
• Syndications
• Demand Deposit Account
• Institutional Trust and Global Custody
• Money Market Demand Account
Brandin
g
• Payables / Receivables
• Treasury Management
• Trade Finance
• Private Placements
• Sales & Trading
• Securities Borrow and Loan
• Securitization
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Strong and High Quality Capital Base
1. Reference Banks consist of the 13 CCAR-filing public regional banks depicted on slide 3 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through November 9, 2016 (Source: SNL Financial)
2. The Tangible common equity ratio and the Common Equity Tier 1 risk-based capital ratio (standardized, fully phased-in) are non-GAAP financial measures. Refer to our separate reconciliation of non-GAAP financial measures in our
earnings release dated October 24, 2016 and our 10-Q for the quarter ended September 30, 2016
MUAH's capital ratios exceed the average of the Reference Banks1
MUAH reports its regulatory capital ratios under the standardized approach of the U.S. Basel III rules, with certain provisions subject
to phase-in periods
• MUB is subject to both the standardized and advanced approaches rules
Ratios calculated at September 30, 2016 reflect the designation of MUAH as MUFG's U.S. IHC on July 1, 2016. Prior period ratios
have not been revised to include the transferred IHC entities.
MUAH's Tier 1 leverage ratio declined during Q3 due to acquisition of assets at the time of IHC formation on July 1, 2016
• Acquired assets were predominantly from MUSA, and were generally comprised of U.S. government-sponsored agency RMBS and
securities issued by the U.S.Treasury
Capital ratios:
Reference
Banks'
Average1
MUAH Capital Ratios
September
30, 2016
September
30, 2016
June 30,
2016
Regulatory:
Common Equity Tier 1 risk-based capital ratio 10.93% 13.97% 13.58%
Tier 1 risk-based capital ratio 11.93 13.97 13.58
Total risk-based capital ratio 14.21 15.66 15.44
Tier 1 leverage ratio 9.81 9.82 11.59
Other:
Tangible common equity ratio2 8.75 9.45 9.53
Common Equity Tier 1 risk-based capital ratio
(U.S. Basel III standardized approach; fully
phased-in)2
N/A 13.94 13.56
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Core Deposits: $77.4
Brokered Deposits: $5.3
Other Deposits: $2.0
Medium- and
Long-term
Debt: $11.4
Commercial Paper and
Other Short-term
Borrowings: $5.9
Robust Liquidity Profile
MUB's core deposit franchise reduces reliance on
wholesale funding
MUB's substantial available liquidity includes:
• Excess Reserves1: $3.5 Bn
• Unpledged securities: $21.1 Bn
• Unused FHLB and Fed capacity: $26.7 Bn
1. Interest bearing deposits in banks
2. Source: MUAH FR Y-9LP as of June 30, 2016; defined as the Total Equity Investment in Subsidiaries divided by Total Equity. Management believes that this is a useful measure because it enables investors and others to assess the extent to
which the Company is using debt to fund its equity investment in its subsidiaries.
3. Amortized Cost / Carrying Amount reflects amortized cost except for balances transferred from AFS to HTM. Those balances reflect amortized cost plus any unrealized gains or losses at the date of transfer
IHC Funding Sources ($ billions)
MUAH maintains liquidity to meet expected
obligations for ≥20 months without access to
funding
MUAH is compliant with the modified LCR
requirement
MUAH's double leverage ratio is 103% as of
6/30/20162
Agency
RMBS
U.S.
Treasury
Agency
CMBS
RMBS
CMBS
CLO
Other
$14.6
$2.1 $1.6
$0.3
$1.0
$2.7
$1.7
MUB's Investment Portfolio, Carrying Value3 ($ billions)
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Securities Financing Portfolio
Assets Liabilities
25,000
20,000
15,000
10,000
5,000
0
$
(M
illi
on
s)
O/N and Continuous 2-30 days 31-90 days > 90 days
$9,554
$12,385
$5,114
$2,617
$19,688
$6,907
$6,070
$617
49.9%
38.5%
5.4%
3.8%
2.0%
0.4%
39.4%
48.0%
6.6%
3.2%
1.8%
0.9%
Assets
Liabilities
Securities financing portfolio is substantially all collateralized by
high quality, liquid assets
• Approximately 88% is collateralized by U.S. Treasuries
and Agency MBS and 12% is backed by equities, credit
and other
Robust risk management framework governs secured financing
profile including guidelines and limits for tenor gaps,
counterparty concentration and stressed liquidity outflows
Securities Financing Maturity Profile
Securities financing activity, largely conducted through MUSA, is supported by high quality collateral
1. Includes continuous maturities which include open trades and term evergreen transactions that are primarily used to fund inventory
1
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Proposed Internal TLAC1 Requirement
The Federal Reserve Board’s proposal for Total
Loss Absorbing Capacity (“TLAC”) would require
MUAH to hold 18.5% of its risk weighted assets
in TLAC-eligible instruments by January 1, 2022
• At least 7% must be in the form of eligible Long Term
Debt issued to MUAH’s foreign parent
At 9/30/2016, MUAH/MUB had sufficient
common equity capital and term debt to fulfill the
proposed quantitative requirements
• However, TLAC-eligible debt must be subordinated
obligations of the holding company and be issued to a
foreign parent
• The proposed requirements for long term debt become
fully effective on Jan 1, 2019
MUFG is expected to be the external TLAC
funding entity for the global organization
MUAH/MUB/MUSA have sufficient aggregate term debt under the TLAC NPR; full compliance requires some modifications
1. Federal Reserve Notice of Proposed Rulemaking concerning Total Loss-Absorbing Capacity, October 30, 2015
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
MUAH Long-Term Debt Outstanding and Maturity Schedule1
As of September 30, 2016
Long-Term Debt Redemption Schedule - Next 10 Years
1. Excludes nonrecourse debt, junior subordinated debt and capital leases
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Deposit Trends
1. Source: FDIC Summary of Deposits as of June 30, 2016
Average deposit balances have been steady over the last year
Transaction & Money Market Savings Time Noninterest Bearing
3Q15 2Q16 3Q16
38 38 38
6 6 6
8 8 7
31 33 34
Deposits1
Metropolitan Statistical Area (MSA) / State Rank Share (%)
Santa Maria-Santa Barbara, CA 2 18.6
San Diego-Carlsbad, CA 4 14.1
Los Angeles-Long Beach-Anaheim, CA 4 10.0
Fresno, CA 4 7.6
Oxnard-Thousand Oaks-Ventura, CA 5 6.2
Salinas, CA 5 9.6
Riverside-San Bernardino-Ontario, CA 6 4.5
Sacramento--Roseville--Arden-Arcade, CA 6 4.5
San Francisco-Oakland-Hayward, CA 7 3.4
Seattle-Tacoma-Bellevue, WA 8 2.8
San Jose-Sunnyvale-Santa Clara, CA 9 2.5
California Total 4 6.4
Washington Total 13 2.0
Average Quarterly Deposit Breakdown ($ billions)
858583
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Earning Asset Mix 3Q 2016
MUB's loan mix is balanced between residential and commercial; MUSA contributes trading and securities financing assets
1. Average balance for the quarter ended September 30, 2016. May not total 100% due to rounding.
2. Period-end total loans held for investment, including all nonperforming loans and purchased credit-impaired loans
Loan Portfolio Composition 2Earning Asset Mix 1
Securities: 17.4%
Cash and
equivalents:
2.6%
Securities Purchased
under Repo and
Securities Borrowed:
15.3%
Trading Assets &
Other: 5.1%
Commercial &
Industrial: 35.0%
Commercial
Mortgage: 18.9%
Construction: 2.9%
Lease Financing:
2.3%
Residential Mortgage:
36.4%
Home Equity & Other
Consumer: 4.5%
Loans2: 59.1%
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Commercial Loan Portfolio
Slight decline in commercial lending. Net charge-offs in 3Q 2016 substantially all driven by oil & gas borrowers
Commercial and Corporate Loan Portfolio
Period-end Loan Balances and Net Charge-offs/(Recoveries) ($mm)
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Consumer Loan Portfolio
Consumer portfolio now includes credit cards and continues to exhibit strong credit quality
Home Equity & Other Consumer Portfolio
Period-end Loan Balances and Net Charge-offs ($mm)
Residential Mortgage Loan Portfolio
Period-end Loan Balances and Net Charge-offs ($mm)
Net Charge-offs Residential Mortgage
3Q15 4Q15 1Q16 2Q16 3Q16
$— $—
$1
$—
$2
$27,856 $27,344 $27,495 $28,244
$28,781
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Loans Securities
Securities Purchased under Repo and Borrowed Trading Assets & Other
Cash and Equiv.
3Q15 4Q15 1Q16 2Q16 3Q16
$78 $80 $80 $82 $80
$24 $24 $24 $23 $24
$31 $32 $32 $24 $21
$4 $3 $4 $6 $7
Net Interest Margin Impacted by Low Rate Environment
Low interest rate environment has pressured net interest margin but we have seen some improvement in recent quarters
1. Net interest margin is annualized and presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent
2. Total loans held for investment
Average Earning Assets ($bn)Net Interest Income & Margin
2
1
Net Interest Margin (%) Net Interest Income ($mm)
3Q15 4Q15 1Q16 2Q16 3Q16
2.10% 2.07% 2.06%
2.23% 2.29%
$723 $730 $724
$754 $773
1
$4$2$2$3$2
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Interest Rate Risk Management of Exposures Other Than Trading1
Net Interest Income (NII) Sensitivity ($mm)
+200
bps
-100
bps
Gradual parallel yield curve shift ove
r
12-month horizo
n
1. Prior period amounts have not been revised to include the transferred IHC entities
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
MUAH Reference Banks' Average
2.0%
1.0%
0.0%
3Q15 4Q15 1Q16 2Q16 3Q16
0.54%
0.70%
1.18%
0.78%
0.91%
1.77% 1.71%
1.87% 1.79%
1.62%
Asset Quality Trends
Nonperforming Assets by Loan Type ($mm)
Net Charge-offs (Recoveries) / Average Loans3Nonperforming Loans / Total Loans1
Criticized4 & Nonaccrual Loans / Total Loans
1. Source: SNL Financial and company reports; MUAH ratio is three month-average, Reference Banks’ ratios are YTD
2. Reference Banks consist of the 13 CCAR-filing public regional banks depicted on slide 3 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through November 9, 2016 (Source: SNL Financial)
3. Annualized ratio
4. Criticized loans held for investment reflect 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
MUAH Reference Banks' Average
1.0%
0.5%
0.0%
-0.5%
3Q15 4Q15 1Q16 2Q16 3Q16
0.06% (0.03)% 0.02%
0.48%
0.61%
0.45% 0.47% 0.49%
0.47% 0.43%
Criticized Percent of Total Loans Held For Investment
Nonaccrual Loans % Of Total Loans Held For Investment
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
3Q15 4Q15 1Q16 2Q16 3Q16
2.12%
3.12%
3.81% 3.53%
2.97%
0.54% 0.70%
1.18%
0.78% 0.91%
Commercial &
Industrial
Commercial
Mortgage
Residential
Mortgage
Home Equity and
Other Consumer
Non-FDIC
Covered OREO
PCI and FDIC
Covered OREO
NPA / Total Assets
$1,000
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
3Q15 4Q15 1Q16 2Q16 3Q16
$138
$284
$702
$396
$486
$40
$37
$30
$26
$31
$201
$190
$186
$177
$172
$32
$35
$32
$28
$26
2 2
0.44
%
0.62
%0.37
%
0.29
%
0.48
%
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Transportation: 13%
Petroleum Exploration &
Production: 69%
Services: 3%
Other: 15%
Downward rating migration within the portfolio has slowed as commodity prices have risen and stabilized
• We proactively risk rate and downgrade loans based on revised cash flow expectations and collateral assessments
Reserve for oil & gas loans is strong at 9.3% of outstanding balances (12.5% for Petroleum Exploration and
Production (PEP) only)
68% of oil & gas commitments are Shared National Credit (SNC) with 30% of SNCs agented by us
Net charge-offs of $105 million within oil & gas portfolio in 3Q 2016; approximately $45 million of the
charge-offs resulted from the transfer of certain PEP loans from held for investment to held for sale
Oil & Gas Overview
Oil & Gas Portfolio Statistics
as of September 30, 2016
Oil & Gas Portfolio Commitments
as of September 30, 2016
Price declines led to increased reserves; charge offs now occurring and reserve coverage remains strong
(Dollars in millions) Loan Amt Allowance
Reserve
Ratio
Oil & Gas portfolio:
Total Commitments: $ 5,139 $ 260 5.1%
Of which are PEP 3,565 252 7.1
Of which are criticized 1,791
Of which Loans Outstanding; 2,460 230 9.3
Of which are PEP 1,802 225 12.5
Of which are criticized 1,075
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Petroleum Exploration and Production (PEP) Portfolio
The PEP portfolio represents:
• 69.4% of oil & gas portfolio commitments
• 73.3% of outstanding loans
Allowance for loan & lease losses is 12.5% of outstanding PEP loans
All Criticized and Nonaccrual oil & gas loans are within the PEP sub-sector as of September 30
Notable reduction in exposure to PEP borrowers with manageable criticized and nonaccrual balances
PEP Portfolio Development ($ millions)
Commitments Outstanding Criticized Outstanding
Nonaccrual
6,000
4,000
2,000
0
3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016
6,147
5,768 5,519
4,529
3,565
3,155 2,943 3,080
2,434
1,802
670
1,226
1,705 1,577
1,075
46 175
547
253 368
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Commercial Real Estate Overview
3Q 2016 Geographic Distribution23Q 2016 Property Type Breakdown
Multi-Family: 27%
Office: 17%
Retail: 16%
Industrial:
14%
Other: 15%
Unsecured:
11%
Secured 89%
Los Angeles: 20%
San Diego: 10%
Orange County: 7%
Santa Clara: 5%
Alameda: 2%
Riverside: 3%
Other: 16%
New York: 8%
Washington: 6%
Illinois: 2%
Oregon: 2%
Other: 19%
Commercial Real Estate Statistics
($ MM)
December 31,
2014
December 31,
2015
March 31,
2016
June 30,
2016
September 30,
2016
Commitments $ 23,877 $ 23,552 $ 24,400 $ 24,211 $ 23,798
Commercial and Industrial 5,977 5,328 5,146 4,960 4,627
Commercial Mortgage 14,275 14,175 15,190 15,404 15,231
Construction 3,626 4,049 4,064 3,847 3,940
Outstandings 18,727 18,919 19,768 19,937 19,572
Commercial and Industrial 2,965 2,718 2,597 2,538 2,378
Commercial Mortgage 14,016 13,904 14,920 15,144 14,937
Construction 1,746 2,297 2,251 2,255 2,257
Nonperforming Loans 40 37 30 26 31
California
63%
Largely secured, California-focused commercial real estate-purposed loans1 with strong credit performance
1. Commercial real estate-purposed loans are comprised of commercial mortgage loans, construction loans and C&I loans to borrowers with real estate-exposed businesses. Does not include CMBS in the investment or trading portfolios
2. Excludes loans not secured by real estate; subsets of California measured by Metropolitan Statistical Area (MSA)
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Consumer Loans Performed Well Through the Crisis
1. At origination
2. Excluding loans serviced by third-party service providers and loans covered by FDIC loss share agreements, includes PCI loans
Data Source: Consumer Lending Monthly Summary and Key Statistics; Source: Residential – Mortgage Bankers Association, Home Equity-American Bankers Association
Notes: National (SA) is seasonally adjusted American Bankers Association data; Benchmark metrics are reported on a one quarter lag
Residential Mortgage Performance Trends
(30 days Past Due + in Foreclosure)
Home Equity and Other Consumer
Total Delinquency (30 Days + Past Due)
Residential Mortgage Portfolio as of September 30, 2016:
• 42% interest-only (non-amortizing)
• 66% weighted average LTV1 for the I/O portfolio
• No subprime programs or option ARM loans
• Low delinquency rate due to focus on prime loans, high FICO scores, and low LTVs
• 78% of the consumer portfolio has a refreshed FICO score of 720 and above2
• 97% has an LTV less than or equal to 80%
MUAH MBA-CA Prime National Prime
MBA-CA Prime ARM
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
MUAH CA HE 30+ (NSA) National (SA)
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
MUAH's Capital, Asset Quality and Ratings Compare Favorably
1. Reference Banks consist of the 13 CCAR-filing public regional banks depicted on slide 3 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through November 9, 2016 (Source: SNL Financial)
2. Annualized ratio
3. Ratings as of November 9, 2016
4. Standard & Poor's ratings for MUAH and MUB on negative outlook as of November 30, 2015
Net Charge-offs / Average Loans1,2Nonperforming Loans / Total Loans1
Common Equity Tier 1 (Basel 3) Ratio1 Reference Banks’ Credit Ratings1,3
MUAH Reference Banks' Average
1.8%
1.5%
1.2%
0.9%
0.6%
0.3%
0.0%
3Q16
0.91%
1.62%
MUAH Reference Banks' Average
15%
14%
13%
12%
11%
10%
3Q16
13.97%
10.93%
Holding Company Ratings Bank Ratings
Long-term ratings S&P Moody's Fitch S&P Moody's Fitch
U.S. Bancorp A+ A1 AA AA- Aa1 AA
Wells Fargo & Company A A2 AA- AA- Aa1 AA
MUAH4 A A3 A A+ A2 A
BB&T Corporation A- A2 A+ A Aa1 A+
JPMorgan Chase & Co. A- A3 A+ A+ Aa2 AA-
PNC Financial Services A- A3 A+ A Aa2 A+
M&T Bank A- A3 A A A2 A
Comerica BBB+ A3 A A- Aa3 A
Fifth Third Bancorp BBB+ Baa1 A A- Aa3 A
Bank of America Corp. BBB+ Baa1 A A A1 A+
Citigroup Inc. BBB+ Baa1 A A A1 A+
KeyCorp BBB+ Baa1 A- A- Aa3 A-
SunTrust Banks BBB+ Baa1 A- A- A1 A-
Citizens Financial Group BBB+ NR BBB+ A- A1 BBB+
Huntington BBB Baa1 A- BBB+ Aa3 A-
Capital One Financial Corp. BBB Baa1 A- BBB+ A1 A-
Regions Financial Corp. BBB Baa3 BBB BBB+ A3 BBB
Zions Bancorporation BBB- Baa3 BBB- BBB Baa3 BBB-
MUAH Reference Banks' Average
0.6%
0.4%
0.2%
0.0%
3Q16
0.61%
0.43%
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Key MUFG Group Credit Ratings
- means not rated
1. Negative Outlook as of November 30, 2015
MUFG Union Bank, N.A. MUFG SecuritiesAmericas Inc.
MUFG Americas
Holdings Corporation
The Bank of Tokyo-
Mitsubishi UFJ, Ltd
Mitsubishi UFJ
Financial Group, Inc.
Deposits Senior Debt Senior Debt Senior Debt Senior Debt Senior Debt
Moody’s
Long-Term Aa2 A2 — A3 A1 A1
Short-Term P-1 P-1 — — P-1 P-1
Standard &
Poor’s
Long-Term — A+1 A+1 A1 A+1 A1
Short-Term — A-1 A-1 A-11 A-1 —
Fitch
Long-Term A+ A A A A A
Short-Term F1 F1 F1 F1 F1 F1
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
2016 CCAR and 2016 Mid-Cycle DFAST Results
The Federal Reserve did not object to MUAH's 2016 capital plan/CCAR submission
2016 Mid-Cycle Severely Adverse Scenario Results
Mid-Cycle DFAST stress test results demonstrate MUAH's capital cushion in excess of regulatory
minimums
• Severely Adverse scenario included a severe global recession, negative short-term interest rates and low long-term
Treasury rates in the U.S., a multi-family commercial real estate (CRE) price shock and a European bank failure
Note: MUAH is a standardized BHC for purposes of calculating capital levels and ratios. MUB is subject to both standardized and advanced approaches rules.
1. Represents minimum projected capital ratios from July 1, 2016 through September 30, 2018.
2. Minimum post-stress regulatory ratios as defined in the Comprehensive Capital Analysis and Review 2016 Summary Instructions, January 2016.
MUFG Americas Holdings Corporation Investor Presentation, 3Q16
Conclusion
MUAH, MUB and MUSA carry solid credit ratings and benefit from the ownership of MUFG, one of the
world’s largest financial organizations
Strong local management team with a majority of independent board members
Solid balance sheet with high-quality capital base and strong liquidity
Conservative risk culture resulting in a high quality loan portfolio with historically strong credit
performance
There are many risks facing the banking industry and MUAH; please refer to the Risk Factors on pages
18-35 of our Form 10-K for the year ended December 31, 2015 and pages 98-104 of our Form 10-Q for
the quarter ended September 30, 2016.
Contacts
Mimi Mengis Doug Lambert
Managing Director Director
415-765-3182 415-765-3180
mimi.mengis@unionbank.com doug.lambert@unionbank.com