10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2017
OR
[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                        to

Commission File Number: 1-15081

MUFG Americas Holdings Corporation

(Exact name of registrant as specified in its charter)

Delaware	94-1234979
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1251 Avenue of the Americas, New York, NY	10020
(Address of principal executive offices)	(Zip Code)
(Registrant's telephone number, including area code) (212) 782-6800

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes x    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes x    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer x (Do not check if a smaller reporting company)	Smaller reporting company o
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes o   No x

Number of shares of Common Stock outstanding at April 30, 2017: 144,322,280

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H (1) (a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

MUFG Americas Holdings Corporation and Subsidiaries

Table of Contents

PART I. FINANCIAL INFORMATION	43
Item 1. Financial Statements	43
Consolidated Statements of Income (Unaudited)	43
Consolidated Statements of Comprehensive Income (Unaudited)	44
Consolidated Balance Sheets (Unaudited)	45
Consolidated Statements of Changes in Stockholders' Equity (Unaudited)	46
Consolidated Statements of Cash Flows (Unaudited)	47
Note 1—Summary of Significant Accounting Policies and Nature of Operations	48
Note 2—Securities	52
Note 3—Loans and Allowance for Loan Losses	57
Note 4—Variable Interest Entities	66
Note 5—Securities Financing Arrangements	68
Note 6—Commercial Paper and Other Short-Term Borrowings	71
Note 7—Long-Term Debt	72
Note 8—Fair Value Measurement and Fair Value of Financial Instruments	74
Note 9—Derivative Instruments and Other Financial Instruments Used For Hedging	80
Note 10—Accumulated Other Comprehensive Income	83
Note 11—Employee Pension and Other Postretirement Benefits	84
Note 12—Commitments, Contingencies and Guarantees	85
Note 13—Business Segments	86
Note 14—Related Party Transactions	89
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	7
Consolidated Financial Highlights	7
Introduction	10
Executive Overview	10
Financial Performance	12
Balance Sheet Analysis	14
Capital Management	17
Risk Management	21
Business Segments	32
Critical Accounting Estimates	39
Non-GAAP Financial Measures	39
Item 3. Quantitative and Qualitative Disclosures About Market Risk	41
Item 4. Controls and Procedures	42
PART II. OTHER INFORMATION	91
Item 1. Legal Proceedings	91
Item 1A. Risk Factors	91
Item 6. Exhibits	91
SIGNATURES	92

2

Glossary of Defined Terms

The following acronyms and abbreviations are used throughout this report, particularly in Part I, Item 1. “Financial Statements," Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Item 3. “Quantitative and Qualitative Disclosures About Market Risk” and Part II, Item 1A. “Risk Factors.”

ALCO	Asset Liability Management Committee
ALM	Asset Liability Management
AOCI	Accumulated other comprehensive income
ARC	Americas Risk Committee
ASU	Accounting Standards Update
BCBS	Basel Committee on Banking Supervision
BHC	U.S. bank holding company
BTMU	The Bank of Tokyo-Mitsubishi UFJ, Ltd. and its consolidated subsidiaries
CCAR	Comprehensive Capital Analysis and Review
CD	Certificate of deposit
CLO	Collateralized loan obligation
CMBS	Commercial mortgage-backed securities
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
ESBP	Executive Supplemental Benefit Plan
Exchange Act	U.S. Securities Exchange Act of 1934
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
Federal Reserve	Board of Governors of the Federal Reserve System
FHLB	Federal Home Loan Bank
FICO	Fair Isaac Corporation
GSIB	Global systemically important banks
HQLA	High quality liquid assets
IHC	Intermediate Holding Company
LCR	Liquidity Coverage Ratio
LIHC	Low income housing credit
LTV	Loan-to-value
MRM	Market Risk Management
MRMC	Market Risk Management Committee
MUAH	MUFG Americas Holdings Corporation
MUB	MUFG Union Bank, N.A.
MUFG	Mitsubishi UFJ Financial Group, Inc.
MUSA	MUFG Securities Americas Inc.
OCC	Office of the Comptroller of the Currency
OCI	Other comprehensive income
OREO	Other real estate owned
PEP	Petroleum exploration and production
RMBS	Residential mortgage-backed securities
SEC	Securities and Exchange Commission
SERP	Supplemental Executive Retirement Plan
SLR	Supplementary Leverage Ratio
TDR	Troubled debt restructuring
TLAC	Total Loss Absorbing Capacity
VaR	Value-at-risk
VIE	Variable interest entity

3

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements, which include expectations for our operations and business and our assumptions for those expectations. Do not rely unduly on forward-looking statements. Actual results might differ significantly compared to our expectations. See Part I, Item 1A. “Risk Factors,” in our 2016 Form 10-K, Part II, Item 1A. “Risk Factors” in this Form 10-Q, and the other risks described in this Form 10-Q and in our 2016 Form 10-K, for factors to be considered when reading any forward-looking statements in this filing.

Forward-looking statements are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. We may make forward-looking statements in our SEC filings, press releases, news articles and when we are speaking on behalf of MUFG Americas Holdings Corporation. 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," "expect," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "forecast," "outlook," words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may." These forward-looking statements are intended to provide investors with additional information with which they may assess our future potential. All of these forward-looking statements are based on assumptions about an uncertain future and are based on information known to our management at the date of these statements. We do not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date any forward-looking statements are made.

In this document and other reports to the SEC, for example, we make forward-looking statements, which discuss our expectations about:

• Our business objectives, strategies and initiatives, organizational structure, business growth, competitive position and prospects, and the effect of competition on our business and strategies

• Our assessment of significant factors and developments that have affected or may affect our results

• Our assessment of economic conditions and trends, economic and credit cycles and their impact on our business

• The economic outlook for the U.S. in general, West Coast states and global economies

• The impact of changes in interest rates resulting from changes in Federal Reserve policy or for other reasons, our strategy to manage our interest rate risk profile and other market risks, our outlook for short-term and long-term interest rates and their effect on our net interest margin, our investment portfolio and our borrowers’ ability to service their loans and on residential mortgage loans and refinancings

• Pending and recent legislative and regulatory actions, and future legislative and regulatory developments, including the effects of legislation and other governmental measures, including the monetary policies of the Federal Reserve introduced in response to the financial crisis, and the ensuing recession affecting the banking system, financial markets and the U.S. economy, the Dodd-Frank Act, changes to the deposit insurance assessment policies of the FDIC, the effect on and application of foreign and other laws and regulations to our business and operations, and anticipated fees, costs or other impacts on our business and operations as a result of these developments

• Our strategies and expectations regarding capital levels and liquidity, our funding base, core deposits, our expectations regarding the capital, liquidity and enhanced prudential standards adopted by the U.S. bank regulators as a result of or under the Dodd-Frank Act and the BCBS capital and liquidity standards including the Federal banking agencies' TLAC regulation (and our expectation that we will replace a portion of our externally-placed debt with debt issued to our parent to comply with this regulation), and other recently adopted and proposed regulations by the U.S. federal banking agencies, and the effect of the foregoing on our business and expectations regarding compliance

• Regulatory and compliance controls and processes and their impact on our business, including our operating costs and revenues

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• The costs and effects of legal actions, investigations, regulatory actions, criminal proceedings or similar matters, our anticipated litigation strategies, our assessment of the timing and ultimate outcome of legal actions, or adverse facts and developments related thereto

• Our allowance for credit losses, including the conditions we consider in determining the unallocated allowance and our portfolio credit quality, risk rating and credit migration trends and loss factors

• Loan portfolio composition and risk rating trends, residential loan delinquency rates compared to the industry average, portfolio credit quality, our strategy regarding TDRs, and our intent to sell or hold loans we originate

• Our intent to sell or hold, and the likelihood that we would be required to sell, or expectations regarding recovery of the amortized cost basis of, various investment securities

• Our hedging strategies, positions, expectations regarding reclassifications of gains or losses on hedging instruments into earnings; and the sensitivity of our net income to various factors, including customer behavior relating to mortgage pre-payments and deposit repricing

• Expected rates of return, maturities, yields, loss exposure, growth rates, pension plan strategies, contributions and benefit payments, and projected results

• Tax rates and taxes, the possible effect of changes in taxable profits of the U.S. operations of MUFG on our state tax obligations and of expected tax credits or benefits

• Critical accounting policies and estimates, the impact or anticipated impact of recent accounting pronouncements, guidance or changes in accounting principles and future recognition of impairments for the fair value of assets, including goodwill, financial instruments, intangible assets and other assets

• Decisions to downsize, sell or close units, dissolve subsidiaries, expand our branch network, pursue acquisitions, purchase banking facilities and equipment, realign our business model or otherwise restructure, reorganize or change our business mix, or the transfer to MUAH by MUFG of its interests in U.S. subsidiaries, and their timing and impact on our business

• Our expectations regarding the formation of our IHC and the impact of acquisitions on our business and results of operations

• The impact of changes in our credit ratings including methodology changes adopted by rating agencies

• Maintenance of casualty and liability insurance coverage appropriate for our operations

• The relationship between our business and that of BTMU and MUFG, the impact of their credit ratings, operations or prospects on our credit ratings and actions that may or may not be taken by BTMU and MUFG

• Threats to the banking sector and our business due to cyber-security issues and attacks on financial institutions and other businesses, such as large retailers, and regulatory expectations relating to cyber-security

• Our understanding that BTMU will continue to limit its participation in transactions with Iranian entities and individuals to certain types of transactions

• The objectives and effects on operations of our business integration initiative and its near term effect on our balance sheet, earnings and capital ratios

• The effect of a possible return of the California drought on its economy and related governmental actions

• The realignment by MUFG Americas of its business model in the U.S., including MUAH

• Descriptions of assumptions underlying or relating to any of the foregoing

Readers of this document should not rely unduly on any forward-looking statements, which reflect only our management’s belief as of the date of this report. There are numerous risks and uncertainties that could cause actual outcomes and results to differ materially from those discussed in our forward-looking statements.

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Many of these factors are beyond our ability to control or predict and could have a material adverse effect on our financial condition, results of operations or prospects. Such risks and uncertainties include, but are not limited to, those described or referred to in Part I, Item 1. “Business” under the captions “Competition” and “Supervision and Regulation” of our 2016 Form 10-K, and in Part II, Item 1A. “Risk Factors” and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q, and in our other reports to the SEC.

Any factor described in this report could by itself, or together with one or more other factors, adversely affect our business, prospects, results of operations or financial condition.

6

Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights

	For the Three Months Ended
(Dollars in millions)	March 31, 2017			March 31, 2016			Percent Change
Results of operations:
Net interest income	$	795		$	724		10	%
Noninterest income	488			474			3
Total revenue	1,283			1,198			7
Noninterest expense	1,006			968			4
Pre-tax, pre-provision income(1)	277			230			20
(Reversal of) provision for credit losses	(30		)	162			(119	)
Income before income taxes and including noncontrolling interests	307			68			351
Income tax expense	83			18			361
Net income including noncontrolling interests	224			50			348
Deduct: Net loss from noncontrolling interests	5			12			(58	)
Net income attributable to MUAH	$	229		$	62		269
Balance sheet (period average):
Total assets	$	149,563		$	154,704		(3	)%
Total securities	24,900			23,550			6
Securities borrowed or purchased under resale agreements	20,454			31,698			(35	)
Total loans held for investment	77,982			80,083			(3	)
Earning assets	136,489			142,153			(4	)
Total deposits	86,151			83,968			3
Securities loaned or sold under repurchase agreements	25,904			31,204			(17	)
MUAH stockholders' equity	17,487			16,692			5
Performance ratios:
Return on average assets(2)	0.62		%	0.16		%
Return on average MUAH stockholders' equity(2)	5.27			1.45
Return on average MUAH tangible common equity(2)(3)	6.64			1.94
Efficiency ratio(4)	78.39			80.90
Adjusted efficiency ratio(5)	73.42			73.72
Net interest margin(2) (6)	2.37			2.06
Net loans charged-off to average total loans held for investment(2)	0.29			0.02

7

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights (Continued)

	As of
	March 31, 2017			December 31, 2016			Percent Change
Balance sheet (end of period):
Total assets	$	149,678		$	148,144		1	%
Total securities	25,299			24,478			3
Securities borrowed or purchased under resale agreements	19,992			19,747			1
Total loans held for investment	78,434			77,551			1
Nonperforming assets	572			692			(17	)
Core deposits(7)	80,717			80,482			—
Total deposits	86,533			86,947			—
Securities loaned or sold under repurchase agreements	25,079			24,616			2
Long-term debt	11,333			11,410			(1	)
MUAH stockholders' equity	17,484			17,233			1
Credit ratios:
Allowance for loan losses to total loans held for investment(8)	0.73		%	0.82		%
Allowance for loan losses to nonaccrual loans(8)	100.12			92.69
Allowance for credit losses to total loans held for investment(9)	0.91			1.03
Allowance for credit losses to nonaccrual loans(9)	125.81			116.20
Nonperforming assets to total loans held for investment and OREO	0.73			0.89
Nonperforming assets to total assets	0.38			0.47
Nonaccrual loans to total loans held for investment	0.73			0.89
Capital ratios:
Regulatory (10):
Common Equity Tier 1 risk-based capital ratio	15.17		%	14.77		%
Tier 1 risk-based capital ratio	15.17			14.77
Total risk-based capital ratio	16.72			16.45
Tier 1 leverage ratio	10.16			9.92
Other:
Tangible common equity ratio(11)	9.65		%	9.58		%
Common Equity Tier 1 risk-based capital ratio (U.S. Basel III standardized   approach; fully phased-in)(12)	15.15			14.73

8

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Financial Highlights (Continued)

(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) Annualized.

(3) Return on tangible common equity, a non-GAAP financial measure, is net income excluding intangible asset amortization divided by average tangible common equity. Management believes that this ratio provides useful supplemental information regarding the Company's business results. The methodology for determining tangible common equity may differ among companies. Please refer to Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" in this Form 10-Q for further information.

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

(5) 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 Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" in this Form 10-Q for further information.

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

(7) 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.

(8) The allowance for loan losses ratios are calculated using the allowance for loan losses as a percentage of end of period total loans held for investment or total nonaccrual loans, as appropriate.

(9) 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.

(10) 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.

(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 Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Management" in this Form 10-Q for further information.

(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 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. Refer to Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Management" in this Form 10-Q for further information.

9

Please refer to our Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Form 10-K) along with the following discussion and analysis of our consolidated financial position and results of operations for the period ended March 31, 2017 in this Form 10-Q. Averages, as presented in the following tables, are substantially all based upon daily average balances.

As used in this Form 10-Q, terms such as “the Company,” “we,” “us” and “our” refer to MUFG Americas Holdings Corporation (MUAH), one or more of its consolidated subsidiaries, or to all of them together.

Introduction

We are a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUSA. We are owned by BTMU and MUFG. BTMU is a wholly-owned subsidiary of MUFG.

The Company has five reportable segments: Regional Bank, U.S. Wholesale Banking, Transaction Banking, Investment Banking & Markets and MUSA. We service U.S. Wholesale Banking, Investment Banking & Markets, certain Transaction Banking, and MUSA customers through the MUFG brand and serve Regional Bank and Transaction Banking customers through the Union Bank brand. We provide a wide range of financial services to consumers, small businesses, middle-market companies and major corporations, both nationally and internationally.

The Company also provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The Bank and BTMU participate in a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided.

The Company’s leadership team is bicoastal with Regional Bank and Transaction Banking leaders on the West Coast while U.S. Wholesale Banking, Investment Banking & Markets and MUSA leaders are based in New York City. The corporate headquarters (principal executive office) for MUB, MUSA and MUAH is in New York City. MUB's main banking office is in San Francisco. The Company had consolidated assets of $149.7 billion at March 31, 2017.

On July 1, 2016 MUFG designated MUAH as its U.S. Intermediate Holding Company in accordance with the requirements of the U.S. Federal Reserve Board's final rules for Enhanced Prudential Standards and transferred interests in substantially all its U.S. subsidiaries to the IHC. It is expected that interests in MUFG's remaining U.S. subsidiaries will be transferred to MUAH by July 1, 2017.

Executive Overview

We are providing you with an overview of what we believe are the most significant factors and developments that affected our first quarter 2017 results and that could influence our future results. Further detailed information can be found elsewhere in this Form 10-Q. In addition, you should carefully read this entire document and any other reports that we refer to in this Form 10-Q for more detailed information to assist your understanding of trends, events and uncertainties that impact us.

Our sources of revenue are net interest income and noninterest income (collectively “total revenue”). Net interest income is generated predominantly from interest earned from loans, investment securities, securities borrowed or purchased under resale agreements, trading account assets and other interest-earning assets, less interest incurred on deposits and borrowings, securities loaned or sold under repurchase agreements and other interest-bearing liabilities. The primary sources of noninterest income are revenues from investment banking and syndication fees, service charges on deposit accounts, trust and investment management fees, trading account activities, credit facility fees, and fees from affiliates. Changes in interest rates, credit quality, economic trends and the capital markets are primary factors that affect our revenue sources. In the first quarter of 2017, revenue was comprised of 62% net interest income and 38% noninterest income. A summary of our financial results is discussed below.

Our primary sources of liquidity are core deposits, securities and wholesale funding. 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. Wholesale funding includes unsecured funds raised from BTMU and affiliates, interbank and other sources, both domestic and international, funding secured

10

by certain assets, or by borrowing from the FHLB. We evaluate and monitor the stability and reliability of our various funding sources to help ensure that we have sufficient liquidity when adverse situations arise.

Performance Highlights

Net income attributable to MUAH was $229 million in the first quarter of 2017, up$167 million from the first quarter of 2016, substantially driven by a decrease in the provision for credit losses and the expansion of the net interest margin.

The provision (reversal) for credit losses was $(30) million in the first quarter of 2017 and $162 million during the three months endedMarch 31, 2016. The reversal of provision in the first quarter of 2017 reflected general improvement in portfolio credit quality and composition. The provision for credit losses in the first quarter of 2016 was substantially due to the impact of continued low oil prices during the three months endedMarch 31, 2016, which resulted in negative credit migration in the oil and gas sector of our loan portfolio.

Net interest income totaled $795 million in the first quarter of 2017, an increase of $71 million from the first quarter of 2016. The increase was primarily driven by an increase in the net interest margin, reflecting the higher interest rate environment compared with the first quarter of 2016. The increase in net interest income was partially offset by an increase in noninterest expense of $38 million during the first quarter of 2017 compared with the first quarter of 2016. The increase in noninterest expense was primarily related to an increase in salaries, including incentive accruals, and professional and outside services expense.

Capital Ratios

The Company's capital ratios continued to exceed all well-capitalized and minimum regulatory thresholds for BHCs, as applicable. The U.S. Basel III Common Equity Tier 1, Tier 1 and Total risk-based capital ratios were 15.17%, 15.17% and 16.72%, respectively, at March 31, 2017. The Tier 1 leverage ratio was 10.16% at March 31, 2017.

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Financial Performance

Net Interest Income

The following tables show the major components of net interest income and net interest margin:

	For the Three Months Ended
	March 31, 2017							March 31, 2016
	Average Balance			Interest Income/ Expense(1)		Average Yield/ Rate(1)(2)		Average Balance			Interest Income/ Expense(1)		Average Yield/ Rate(1)(2)
(Dollars in millions)
Assets
Loans held for investment:(3)
Commercial and industrial	$	25,612		$	220	3.49	%	$	30,475		$	248	3.27	%
Commercial mortgage	14,504			148		4.07		14,604			148		4.04
Construction	2,217			22		4.01		2,272			22		3.94
Lease financing	1,788			16		3.63		1,890			15		3.15
Residential mortgage	30,411			256		3.37		27,479			233		3.40
Home equity and other consumer loans	3,450			49		5.77		3,363			41		4.96
Total loans held for investment	77,982			711		3.67		80,083			707		3.54
Securities	24,900			135		2.16		23,550			115		1.95
Securities borrowed or purchased under resale agreements	20,454			63		1.26		31,698			50		0.64
Interest bearing deposits in banks	3,450			7		0.82		2,412			3		0.53
Federal funds sold	—			—		1.03		42			—		0.53
Trading account assets	9,094			74		3.29		3,951			22		2.24
Other earning assets	609			3		2.12		417			3		2.54
Total earning assets	136,489			993		2.93		142,153			900		2.54
Allowance for loan losses	(647		)					(727		)
Cash and due from banks	1,869							1,888
Premises and equipment, net	592							643
Other assets(4)	11,260							10,747
Total assets	$	149,563						$	154,704
Liabilities
Interest bearing deposits:
Transaction and money market accounts	$	39,905		$	33	0.34		$	38,355		$	28	0.30
Savings	6,205			1		0.07		5,715			1		0.06
Time	5,369			15		1.13		7,577			20		1.08
Total interest bearing deposits	51,479			49		0.39		51,647			49		0.39
Commercial paper and other short-term borrowings	3,477			8		0.94		3,536			3		0.42
Securities loaned or sold under repurchase agreements	25,904			59		0.92		31,204			32		0.41
Long-term debt	11,347			57		2.01		13,410			73		2.14
Total borrowed funds	40,728			124		1.22		48,150			108		0.90
Trading account liabilities	2,567			16		2.57		2,716			13		1.96
Total interest bearing liabilities	94,774			189		0.81		102,513			170		0.67
Noninterest bearing deposits	34,672							32,321
Other liabilities(5)	2,487							3,006
Total liabilities	131,933							137,840
Equity
MUAH stockholders' equity	17,487							16,692
Noncontrolling interests	143							172
Total equity	17,630							16,864
Total liabilities and equity	$	149,563						$	154,704
Net interest income/spread (taxable-equivalent basis)				804		2.12	%				730		1.87	%
Impact of noninterest bearing deposits						0.22							0.16
Impact of other noninterest bearing sources						0.03							0.03
Net interest margin						2.37							2.06
Less: taxable-equivalent adjustment				9							6
Net interest income				$	795						$	724

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

(2) Annualized.

(3) Average balances on loans outstanding 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.

(4) Includes noninterest bearing trading account assets.

(5) Includes noninterest bearing trading account liabilities.

12

Net interest income for the three months endedMarch 31, 2017 increased $71 million compared with the same period in 2016. The increase in net interest income was primarily due to an increase in the net interest margin, reflecting the comparatively higher interest rate environment in the current quarter, partially offset by a decline in earning assets.

Noninterest Income and Noninterest Expense

The following tables display our noninterest income and noninterest expense for the three months endedMarch 31, 2017 and 2016:

Noninterest Income

	For the Three Months Ended
							Increase (Decrease)
	March 31, 2017			March 31, 2016
(Dollars in millions)							Amount			Percent
Service charges on deposit accounts	$	48		$	49		$	(1	)	(2	)	%
Trust and investment management fees	29			32			(3		)	(9	)
Trading account activities	(4		)	28			(32		)	(114	)
Securities gains, net	2			13			(11		)	(85	)
Credit facility fees	26			27			(1		)	(4	)
Brokerage commissions and fees	18			19			(1		)	(5	)
Card processing fees, net	11			9			2			22
Investment banking and syndication fees	88			61			27			44
Fees from affiliates	219			212			7			3
Other investment income	(12		)	(1		)	(11		)	nm
Other, net	63			25			38			152
Total noninterest income	$	488		$	474		$	14		3		%

Noninterest income increased during the three months endedMarch 31, 2017 primarily due to an increase in investment banking and syndication fees and an increase in Other, net, partially offset by a decrease in trading account activities. The increase in investment banking and syndication fees was due to increased underwriting activity. The increase in Other, net was due to impairments of certain oil and gas-related private equity investments in the first quarter of 2016.

For the three months endedMarch 31, 2017 and 2016, the Company recorded the following income and expenses related to support services provided to BTMU's U.S. branch banking operations:

	For the Three Months Ended
(Dollars in millions)	March 31, 2017		March 31, 2016
Fees from affiliates - support services	$	158	$	149
Staff costs associated with fees from affiliates - support services	147		139
Net support services	$	11	$	10

The Company also recognized fees from affiliates through revenue sharing agreements with BTMU for various business and banking services, with associated costs included within noninterest expense.

13

Noninterest Expense

	For the Three Months Ended
					Increase (Decrease)
	March 31, 2017		March 31, 2016
(Dollars in millions)					Amount			Percent
Salaries and other compensation	$	533	$	499	$	34		7		%
Employee benefits	82		96		(14		)	(15	)
Salaries and employee benefits	615		595		20			3
Net occupancy and equipment	82		81		1			1
Professional and outside services	116		105		11			10
Software	46		37		9			24
Regulatory assessments	20		14		6			43
Intangible asset amortization	7		7		—			—
LIHC investment amortization	2		2		—			—
Advertising and public relations	20		14		6			43
Communications	14		15		(1		)	(7	)
Data processing	9		9		—			—
Other	75		89		(14		)	(16	)
Total noninterest expense	$	1,006	$	968	$	38		4		%

The increase in noninterest expense was driven primarily by an increase in salaries and other compensation expenses, related in part to higher incentive accruals in the first quarter of 2017. Noninterest expense also increased due to higher professional and outside services expense related to controls and compliance functions.

Income Tax Expense

Income tax expense and the effective tax rate include both federal and state income taxes. In the first quarter of 2017, income tax expense was $83 million with an effective tax rate of 27%, compared with an expense of $18 million and a rate of 26% for the first quarter of 2016.

For further information regarding income tax expense, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Income Tax Expense" in Part II, Item 7. and “Changes in our tax rates could affect our future results” in “Risk Factors” in Part I, Item 1A. and Note 18 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

Balance Sheet Analysis

Securities

Our securities portfolio is primarily used for liquidity and interest rate risk management purposes, to invest cash resulting from excess liquidity, and to a lesser extent, to support our business development objectives. We strive to maximize total return while managing this objective within appropriate risk parameters. Securities available for sale are principally comprised of U.S. Treasury securities, RMBS, CMBS, Cash Flow CLOs, and direct bank purchase bonds. Direct bank purchase bonds are instruments that are issued in bond form, accounted for as securities, but underwritten as loans with features that are typically found in commercial loans. Securities held to maturity consist of U.S. Treasury securities, U.S. government-sponsored agency securities and U.S. government-sponsored agency RMBS and CMBS.

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities are detailed in Note 2 to our Consolidated Financial Statements in this Form 10-Q.

14

Loans Held for Investment

The following table shows loans held for investment outstanding by loan type at the end of each period presented:

					Increase (Decrease)
	March 31, 2017		December 31, 2016
(Dollars in millions)					Amount			Percent
Loans held for investment:
Commercial and industrial	$	25,602	$	25,379	$	223		1	%
Commercial mortgage	14,468		14,625		(157		)	(1	)
Construction	2,040		2,283		(243		)	(11	)
Lease financing	1,779		1,819		(40		)	(2	)
Total commercial portfolio	43,889		44,106		(217		)	—
Residential mortgage	31,162		29,922		1,240			4
Home equity and other consumer loans	3,383		3,523		(140		)	(4	)
Total consumer portfolio	34,545		33,445		1,100			3
Total loans held for investment	$	78,434	$	77,551	$	883		1	%

Loans held for investment increased from December 31, 2016 to March 31, 2017, primarily due to organic growth in the residential mortgage portfolio.

Cross-Border Outstandings

Our cross-border outstandings reflect certain additional economic and political risks that differ from or are greater than those reflected in domestic outstandings. These risks include, but are not limited to, those arising from exchange rate fluctuations and restrictions on the transfer of funds. Our total cross-border outstandings for Japan, the only country where such outstandings exceeded one percent of total assets as of March 31, 2017 and December 31, 2016 were $2.9 billion and $3.1 billion, respectively. These cross-border outstandings are based on category and legal residence of ultimate risk and are comprised of securities financing arrangements from MUSA.

15

Deposits

The table below presents our deposits as of March 31, 2017 and December 31, 2016.

					Increase (Decrease)
	March 31, 2017		December 31, 2016
(Dollars in millions)					Amount			Percent
Interest checking	$	5,890	$	5,093	$	797		16	%
Money market	33,260		34,591		(1,331		)	(4	)
Total interest bearing transaction and money market accounts	39,150		39,684		(534		)	(1	)
Savings	7,108		5,928		1,180			20
Time	5,255		5,681		(426		)	(7	)
Total interest bearing deposits	51,513		51,293		220			—
Noninterest bearing deposits	35,020		35,654		(634		)	(2	)
Total deposits	$	86,533	$	86,947	$	(414	)	—	%
Total interest bearing deposits include the following brokered deposits:
Interest bearing transaction and money market accounts	$	2,632	$	2,938	$	(306	)	(10	)%
Time	1,755		1,918		(163		)	(8	)
Total brokered deposits	$	4,387	$	4,856	$	(469	)	(10	)%
Core Deposits:
Total deposits	$	86,533	$	86,947	$	(414	)	—	%
Less: total brokered deposits	4,387		4,856		(469		)	(10	)
Less: total foreign deposits and nonbrokered domestic time deposits of over $250,000	1,429		1,609		(180		)	(11	)
Total core deposits	$	80,717	$	80,482	$	235		—	%

Total deposits decreased $0.4 billion from December 31, 2016 to March 31, 2017 due to a decrease in demand deposits and money market deposits, partially offset by an increase in interest bearing savings deposits related to the launch of PurePoint Financial, a new online division of the Bank, and interest bearing checking deposits. Core deposits as a percentage of total deposits were 93% at March 31, 2017 and December 31, 2016, respectively.

Securities Financing Arrangements

The Company enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, and securities borrowing and lending transactions to facilitate customer match-book activity, cover short positions and to fund the Company's trading inventory. These balances are almost entirely attributable to MUSA. See Note 5 to our Consolidated Financial Statements in this Form 10-Q for additional information.

16

Capital Management

Both MUAH and MUB are subject to various capital adequacy regulations issued by the U.S. federal banking agencies, including requirements to file an annual capital plan and to maintain minimum regulatory capital ratios. As of March 31, 2017, management believes the capital ratios of MUAH and MUB met all regulatory requirements of “well-capitalized” institutions.

The Company timely filed its annual capital plan under the Federal Reserve's CCAR program in April 2017. CCAR evaluates capital planning processes and assesses capital adequacy levels under various scenarios to determine if BHCs would have sufficient capital to continue operations throughout times of economic and financial market stress. The Company's 2017 CCAR submission encompassed a range of expected and stressed economic and financial market scenarios, and included an assessment of expected sources and uses of capital over a prescribed planning horizon, a description of all capital actions within that timeframe, and a discussion of any proposed business plan changes that are likely to have a material impact on capital adequacy.

MUAH and MUB are required to maintain minimum capital ratios in accordance with rules issued by the U.S. federal banking agencies. In July 2013, the U.S. federal banking agencies issued final rules to implement the BCBS capital guidelines for U.S. banking organizations (U.S. Basel III). These rules supersede the U.S. federal banking agencies’ general risk-based capital rules (commonly known as “Basel I”), advanced approaches rules (commonly known as “Basel II”) that are applicable to certain large banking organizations, and leverage rules, and are subject to certain transition provisions. Among other requirements, the U.S. Basel III rules revised the definition of capital; increased minimum capital ratios; introduced a minimum Common Equity Tier 1 capital ratio of 4.5% and a capital conservation buffer of 2.5% (for a total minimum Common Equity Tier 1 capital ratio of 7.0%) and, for advanced approaches institutions, a potential countercyclical buffer of up to 2.5%, which would be imposed by regulators at their discretion if it is determined that a period of excessive credit growth is contributing to an increase in financial institution systemic risk; mandated a Tier 1 leverage ratio of 4%; introduced, for large and internationally active BHCs, a Tier 1 SLR that is currently set at 3% and which incorporates off-balance sheet exposures; revised Basel I rules for calculating risk-weighted assets under a standardized approach; modified the existing Basel II advanced approaches rules for calculating risk-weighted assets under U.S. Basel III; and phased-out, for advanced approaches institutions, the exclusion of AOCI that had applied under Basel I and Basel II rules, over a four-year transition period beginning on January 1, 2014. Banking organizations not subject to the advanced approaches rules, such as MUAH, were required to comply with the standardized approach capital rules beginning on January 1, 2015.

MUB previously opted-in to the advanced approaches risk-based capital rules, and therefore was required to comply with the U.S. Basel III capital rules beginning on January 1, 2014. However, MUB is in discussions with the OCC to opt-out of the U.S. Basel III advanced approaches rules. We expect these discussions to be completed in the second quarter of 2017.

As required under U.S. Basel III rules, the 2.5% capital conservation buffer is being implemented on a phased-in basis in equal increments of 0.625% per year over a four-year period that commenced on January 1, 2016. MUAH and MUB would satisfy the minimum capital requirements including the capital conservation buffer on a fully phased-in basis if those requirements were effective as of March 31, 2017.

17

The following tables summarize the calculation of MUAH’s risk-based capital ratios in accordance with the U.S. Basel III rules as of March 31, 2017 and December 31, 2016.

MUFG Americas Holdings Corporation

	U.S. Basel III
(Dollars in millions)	March 31, 2017		December 31, 2016
Capital Components
Common Equity Tier 1 capital	$	14,977	$	14,757
Tier 1 capital	$	14,977	$	14,757
Tier 2 capital	1,538		1,674
Total risk-based capital	$	16,515	$	16,431
Risk-weighted assets	$	98,749	$	99,904
Average total assets for leverage capital purposes	$	147,375	$	148,794

	U.S. Basel III								Minimum Capital Requirement with Capital Conservation Buffer (1)
(Dollars in millions)	March 31, 2017				December 31, 2016				March 31, 2017
Capital Ratios	Amount		Ratio		Amount		Ratio		Amount			Ratio
Common Equity Tier 1 capital (to risk-weighted assets)	$	14,977	15.17	%	$	14,757	14.77	%	≥	$	5,678	5.750	%
Tier 1 capital (to risk-weighted assets)	14,977		15.17		14,757		14.77		≥	7,159		7.250
Total capital (to risk-weighted assets)	16,515		16.72		16,431		16.45		≥	9,134		9.250
Tier 1 leverage(2)	14,977		10.16		14,757		9.92		≥	5,895		4.000

(1)Beginning January 1, 2017, the minimum capital requirement includes a capital conservation buffer of 1.250%.

(2)Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

18

The following tables summarize the calculation of MUB’s risk-based capital ratios in accordance with the transition guidelines set forth in the U.S. Basel III rules as of March 31, 2017 and December 31, 2016.

MUFG Union Bank, N.A.

	U.S. Basel III
(Dollars in millions)	March 31, 2017		December 31, 2016
Capital Components
Common Equity Tier 1 capital	$	13,122	$	13,056
Tier 1 capital	$	13,122	$	13,056
Tier 2 capital	1,438		1,504
Total risk-based capital	$	14,560	$	14,560
Risk-weighted assets	$	88,357	$	89,382
Average total assets for leverage capital purposes	$	112,261	$	113,939

	U.S. Basel III								Minimum Capital Requirement with Capital Conservation Buffer (1)					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in millions)	March 31, 2017				December 31, 2016				March 31, 2017
Capital Ratios	Amount		Ratio		Amount		Ratio		Amount			Ratio		Amount			Ratio
Common Equity Tier 1 capital (to risk-weighted assets)	$	13,122	14.85	%	$	13,056	14.61	%	≥	$	5,081	5.750	%	≥	$	5,743	6.5	%
Tier 1 capital (to risk-weighted assets)	13,122		14.85		13,056		14.61		≥	6,406		7.250		≥	7,069		8.0
Total capital (to risk-weighted assets)	14,560		16.48		14,560		16.29		≥	8,173		9.250		≥	8,836		10.0
Tier 1 leverage(2)	13,122		11.69		13,056		11.46		≥	4,490		4.000		≥	5,613		5.0

(1)Beginning January 1, 2017, the minimum capital requirement includes a capital conservation buffer of 1.250%.

(2)Tier 1 capital divided by quarterly average assets (excluding certain disallowed assets, primarily goodwill and other intangibles).

In addition to capital ratios determined in accordance with regulatory requirements, we consider the tangible common equity ratio when evaluating capital utilization and adequacy. This capital ratio is monitored by management, and presented below, to further facilitate the understanding of our capital structure and for use in assessing and comparing the quality and composition of the Company’s capital structure to other financial institutions. This ratio is not codified within GAAP or federal banking regulations in effect at March 31, 2017. Therefore, it is considered a non-GAAP financial measure. Our tangible common equity ratio calculation method may differ from those used by other financial services companies.

19

The following table summarizes the calculation of the Company's tangible common equity ratios as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
(Dollars in millions)
Total MUAH stockholders' equity	$	17,484		$	17,233
Goodwill	(3,225		)	(3,225		)
Intangible assets, except mortgage servicing rights	(216		)	(223		)
Deferred tax liabilities related to goodwill and intangible assets	72			79
Tangible common equity (a)	$	14,115		$	13,864
Total assets	$	149,678		$	148,144
Goodwill	(3,225		)	(3,225		)
Intangible assets, except mortgage servicing rights	(216		)	(223		)
Deferred tax liabilities related to goodwill and intangible assets	72			79
Tangible assets (b)	$	146,309		$	144,775
Tangible common equity ratio (a)/(b)	9.65		%	9.58		%

The Company’s fully phased-in Common Equity Tier 1 capital ratio calculated under the U.S. Basel III standardized approach at March 31, 2017 and December 31, 2016 was estimated to be 15.15% and 14.73%, respectively. Management believes that the Company would satisfy all capital adequacy requirements under the U.S. Basel III rules on a fully phased-in basis if those requirements had been effective at both March 31, 2017 and December 31, 2016.

The following table summarizes the calculation of the Company's fully phased-in Common Equity Tier 1 capital to total risk-weighted assets ratio under the U.S. Basel III standardized approach as of March 31, 2017 and December 31, 2016:

Common Equity Tier 1 capital under U.S. Basel III (standardized approach; fully phased-in)
	March 31, 2017			December 31, 2016
(Dollars in millions)	(Estimated)			(Estimated)
Common Equity Tier 1 capital under U.S. Basel III (transitional)	$	14,977		$	14,757
Other	(29		)	(58		)
Common Equity Tier 1 capital estimated under U.S. Basel III (standardized approach; fully phased-in) (a)	$	14,948		$	14,699
Risk-weighted assets, estimated under U.S. Basel III (standardized; transitional)	$	98,749		$	99,904
Adjustments	(101		)	(137		)
Total risk-weighted assets, estimated under U.S. Basel III (standardized approach; fully phased-in) (b)	$	98,648		$	99,767
Common Equity Tier 1 capital to total risk-weighted assets estimated under U.S. Basel III (standardized approach; fully phased-in) (1) (a)/(b)	15.15		%	14.73		%

(1) 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 period in which the ratio is disclosed.  Management reviews this ratio, which excludes 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.

For additional information regarding our regulatory capital requirements, see "Supervision and Regulation-Regulatory Capital and Liquidity Standards" in Part I, Item 1. in our 2016 Form 10-K.

20

Risk Management

All financial institutions must manage and control a variety of business risks that can significantly affect their financial condition and performance. Some of the key risks that the Company must manage include credit, market, liquidity, operational, interest rate, compliance, reputation and strategic risks. The Board, directly or through its appropriate committees, provides oversight and approves our various risk management policies. Management has established a risk management structure that is designed to provide a comprehensive approach for identifying, measuring, monitoring, controlling and reporting on the significant risks faced by the Company. For additional information regarding our risk management structure and framework, refer to the section “Risk Management” included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2016 Form 10-K.

Credit Risk Management

One of our principal business activities is the extension of credit to individuals and businesses. Our policies and the applicable laws and regulations governing the extension of credit require risk analysis, including an extensive evaluation of the purpose of the request and the borrower’s ability and willingness to repay as scheduled. Our process also includes ongoing portfolio and credit management through portfolio diversification, lending limit constraints, credit review and approval policies, and extensive internal monitoring. For additional information regarding our credit risk management policies, refer to the section “Credit Risk Management” included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2016 Form 10-K.

Allowance for Credit Losses

We maintain an allowance for credit losses (defined as both the allowance for loan losses and the allowance for losses on unfunded credit commitments) to absorb losses inherent in the loan portfolio as well as for unfunded credit commitments. Understanding our policies on the allowance for credit losses is fundamental to understanding our consolidated financial condition and consolidated results of operations. Accordingly, our significant accounting policies on the allowance for credit losses are discussed in detail in Note 1 to our Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” and in the section “Allowance for Credit Losses” included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2016 Form 10-K. For additional information regarding our allowance for loan losses, refer to Note 3 of our Consolidated Financial Statements in Part I, Item 1. “Financial Statements” of this Form 10-Q.

The allowance for loan losses was $570 million at March 31, 2017 compared with $639 million at December 31, 2016. Our ratio of allowance for loan losses to total loans held for investment was 0.73% as of March 31, 2017 and 0.82% as of December 31, 2016. The $14 million reversal of provision for loan losses during the three months endedMarch 31, 2017 reflects general improvement in portfolio credit quality and composition. Net loans charged-off during the first quarter of 2017 were $56 million, primarily comprised of PEP loans. Net loans charged-off to average total loans held for investment were 0.29% for the three months ended March 31, 2017, compared with 0.02% for the three months ended March 31, 2016.

Nonaccrual loans were $569 million at March 31, 2017 compared with $689 million at December 31, 2016. The decrease in nonaccrual loans outstanding during the first quarter of 2017 was primarily driven by payoffs of certain loans in the PEP portfolio, as well as a refinement to our credit policy related to accrual status on residential mortgages. Our ratio of nonaccrual loans to total loans held for investment decreased to 0.73% at March 31, 2017 from 0.89% at December 31, 2016. Our ratio of allowance for loan losses to nonaccrual loans increased to 100.12% at March 31, 2017 from 92.69% at December 31, 2016. Criticized credits in the commercial segment decreased to $2.2 billion at March 31, 2017 from $2.4 billion at December 31, 2016. The decrease in criticized credits was primarily due to general improvement and payoffs in the PEP portfolio during the first quarter of 2017. Refer to Note 3 of our Consolidated Financial Statements in Part I, Item 1. "Financial Statements" of this Form 10-Q for a description of criticized credits.

21

Change in the Allowance for Loan Losses

The following table sets forth a reconciliation of changes in our allowance for loan losses:

	For the Three Months Ended March 31,
(Dollars in millions)	2017			2016
Allowance for loan losses, beginning of period	$	639		$	723
(Reversal of) provision for loan losses	(14		)	158
Other	1			4
Loans charged-off:
Commercial and industrial	(49		)	(8		)
Commercial and industrial - transfer to held for sale	(6		)	—
Total commercial portfolio	(55		)	(8		)
Residential mortgage	—			1
Home equity and other consumer loans	(11		)	(2		)
Total consumer portfolio	(11		)	(1		)
Total loans charged-off	(66		)	(9		)
Recoveries of loans previously charged-off:
Commercial and industrial	8			1
Commercial mortgage	1			3
Total commercial portfolio	9			4
Home equity and other consumer loans	1			1
Total consumer portfolio	1			1
Total recoveries of loans previously charged-off	10			5
Net loans recovered (charged-off)	(56		)	(4		)
Ending balance of allowance for loan losses	570			881
Allowance for losses on unfunded credit commitments	146			169
Total allowance for credit losses	$	716		$	1,050

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Nonperforming Assets

Nonperforming assets consist of nonaccrual loans and OREO. Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest, or such loans have become contractually past due 90 days with respect to principal or interest. OREO includes property where the Bank acquired title through foreclosure or “deed in lieu” of foreclosure. For a more detailed discussion of the accounting for nonaccrual loans, see Note 1 to our Consolidated Financial Statements included in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

The following table sets forth the components of nonperforming assets and TDRs:

	March 31, 2017		December 31, 2016		Increase (Decrease)
(Dollars in millions)					Amount			Percent
Nonaccrual loans:
Commercial and industrial	$	400	$	458	$	(58	)	(13	)%
Commercial mortgage	33		31		2			6
Total commercial portfolio	433		489		(56		)	(11	)
Residential mortgage	110		171		(61		)	(36	)
Home equity and other consumer loans	26		29		(3		)	(10	)
Total consumer portfolio	136		200		(64		)	(32	)
Total nonaccrual loans	569		689		(120		)	(17	)
OREO	3		3		—			—
Total nonperforming assets	$	572	$	692	$	(120	)	(17	)%
Troubled debt restructurings:
Accruing	$	336	$	215	$	121		56	%
Nonaccruing (included in total nonaccrual loans above)	$	301	$	384	$	(83	)	(22	)%
Total troubled debt restructurings	$	637	$	599	$	38		6	%

Total nonperforming assets as of March 31, 2017 were $572 million, or 0.38% of total assets, compared with $692 million, or 0.47% of total assets, at December 31, 2016. The decrease in nonperforming assets of $120 million from December 31, 2016 to March 31, 2017 was driven primarily by payoffs of certain loans in the PEP loan portfolio, as well as a refinement to our credit policy related to accrual status on residential mortgages.

Troubled Debt Restructurings

TDRs are loans where we have granted a concession to a borrower as a result of the borrower experiencing financial difficulty and, consequently, we receive less than the current market-based compensation for loans with similar risk characteristics. Such loans are reviewed for impairment either individually or in pools with similar risk characteristics. Our loss mitigation strategies are designed to minimize economic loss and, at times, may result in changes to the original terms, including interest rate changes, maturity extensions, principal paydowns, covenant waivers or changes, payment deferrals, or some combination thereof. We evaluate whether these changes to the terms and conditions of our loans meet the TDR criteria after considering the specific situation of the borrower and all relevant facts and circumstances related to the modification. For our consumer portfolio segment, TDRs are typically initially placed on nonaccrual and a minimum of six consecutive months of sustained performance is required before returning to accrual status. For our commercial portfolio segment, we generally determine accrual status for TDRs by performing an individual assessment of each loan, which may include, among other factors, borrower performance under previous loan terms.

23

The following table provides a summary of TDRs by loan type, including nonaccrual loans and loans that have been returned to accrual status, as of March 31, 2017 and December 31, 2016. Refer to Note 3 to our Consolidated Financial Statements in Part I, Item 1. "Financial Statements" in this Form 10-Q for more information.

					As a Percentage of Ending Loan Balances
(Dollars in millions)	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Commercial and industrial	$	304	$	321	1.19	%	1.26	%
Commercial mortgage	9		9		0.06		0.06
Construction	61		—		2.99		—
Total commercial portfolio	374		330		0.85		0.75
Residential mortgage	234		239		0.75		0.80
Home equity and other consumer loans	29		30		0.86		0.85
Total consumer portfolio	263		269		0.76		0.80
Total restructured loans	$	637	$	599	0.81	%	0.77	%

Loans 90 Days or More Past Due and Still Accruing

Loans held for investment 90 days or more past due and still accruing totaled $24 million at March 31, 2017 and $23 million at December 31, 2016.

Concentration of Risk

Commercial and industrial loans are extended principally to corporations, middle-market businesses and small businesses and are originated primarily through our commercial banking offices. Our commercial and industrial portfolio is comprised largely of the following industry sectors: finance and insurance, power and utilities, real estate and leasing, manufacturing and information. No individual industry sector exceeded 10% of our total loans held for investment at either March 31, 2017 or December 31, 2016.

Construction and commercial mortgage loans are secured by deeds of trust or mortgages. Construction loans are extended primarily to commercial property developers and to residential builders. At March 31, 2017, 54% of the Company’s construction loan portfolio was concentrated in California, 13% to borrowers in the state of New York and 6% to borrowers in the state of Washington. The commercial mortgage loan portfolio consists of loans secured by commercial income properties. At March 31, 2017, 62% of the Company’s commercial mortgage loans were made to borrowers located in California, 8% to borrowers in the state of New York and 7% to borrowers in the state of Washington.

Residential mortgage loans are originated and secured by one-to-four family residential properties, through our multiple channel network, including branches, private bankers, mortgage brokers, telephone services and web-based and mobile internet banking applications. We do not have a program for originating or purchasing subprime loan products and we hold the majority of the loans we originate.

At March 31, 2017, payment terms on 39% of our residential mortgage loans required a monthly payment that covers the full amount of interest due, but did not reduce the principal balance. At origination, these interest-only loans had strong credit profiles and had weighted average LTV ratios of approximately 65%. The remainder of the portfolio consisted of regularly amortizing loans.

Home equity and other consumer loans are originated principally through our branch network and Private Banking offices. Approximately 31% and 32% of the home equity loans and lines were supported by first liens on residential properties as of March 31, 2017 and December 31, 2016, respectively. To manage risk associated with lending commitments, we review all equity-secured lines annually for creditworthiness and may reduce or freeze limits, to the extent permitted by laws and regulations. See Note 3 to our Consolidated Financial Statements in Part I, Item 1. “Financial Statements” in this Form 10-Q for additional information on refreshed FICO scores and refreshed LTV ratios for our residential mortgage loans at March 31, 2017 and December 31, 2016.

As of March 31, 2017, our sovereign and non-sovereign debt exposure to European countries was not material.

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Market Risk Management

The objective of market risk management is to mitigate any adverse impact on earnings and capital arising from changes in interest rates and other market variables. Market risk management supports our broad objective of enhancing shareholder value, which encompasses the achievement of stable earnings growth while promoting capital stability over time. Market risk is defined as the risk of loss arising from an adverse change in the market value of financial instruments caused by fluctuations in market prices or rates. The primary market risk to which we are exposed is interest rate risk. Interest rate risk arises from instruments, positions and transactions entered into for purposes other than trading and for trading. Other than trading interest rate risk arises from loans, securities, deposits, borrowings, securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrow and loan transactions, and derivative instruments. Trading interest rate risk primarily arises from trading activities at MUAH's broker-dealer subsidiary, MUSA, and derivative contracts MUB enters into as a financial intermediary for customers.

Market Risk Governance

The MRM Policy, adopted by the Risk Committee of the Board of Directors, governs the Company’s management and oversight of market risk. The MRM Policy establishes the Company’s risk tolerance by outlining standards for measuring market risk, creates Board-level limits for specific market risks, and establishes MRMC responsibilities and oversight of market risk activities.

ARC, composed of selected senior officers of the Company, supports the MRM Policy setting process by striving to ensure that the Company has an effective process to identify, monitor, measure and manage market risk as required by the MRM Policy. ARC provides broad and strategic guidance for market risk management by defining the risk and return direction for the Company. MRMC approves the trading policies that govern the Company’s activities. ALCO is responsible for the approval of specific interest rate risk management programs, including those related to interest rate hedging, investment securities and wholesale funding of MUAH, along with approval of capital policies.

The Treasurer is primarily responsible for the implementation of interest rate risk management strategies approved by ALCO and for operational management of market risk, as defined above, through funding, investment and derivatives hedging activities. The MRM unit is responsible for monitoring market risk and functions independently of all operating and management units and subsidiaries.

The Company has separate and distinct methods for managing the market risk associated with our asset and liability management activities and our trading activities, as described below.

Interest Rate Risk Management

ALCO monitors interest rate risk from ALM activities on a monthly basis through a variety of modeling techniques that are used to quantify the sensitivity of net interest income to changes in interest rates. Our net interest income sensitivity analysis typically involves a simulation in which we estimate the net interest income impact of gradual parallel shifts in the yield curve of up 200 basis points and down 100 basis points over a 12-month horizon using a forecasted balance sheet.

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Net Interest Income Sensitivity

The table below presents the estimated increase (decrease) in net interest income given a gradual parallel shift in the yield curve up 200 basis points and down 100 basis points over a 12-month horizon.

(Dollars in millions)	March 31, 2017			December 31, 2016
Effect on net interest income:
Increase 200 basis points	$	57.0		$	18.5
as a percentage of base case net interest income	1.91		%	0.61		%
Decrease 100 basis points	$	(45.9	)	$	(19.1	)
as a percentage of base case net interest income	(1.54		)%	(0.63		)%

An increase in rates increases net interest income. During the three months endedMarch 31, 2017, the Company's asset sensitive profile increased due to changes in balance sheet composition and forecasted balance sheet activity over the next twelve months, reflecting the impact of recent rate increases on certain components of the balance sheet. We believe that our simulation provides management with a comprehensive view of the sensitivity of net interest income to changes in interest rates over the measurement horizon. However, as with any financial model, the underlying assumptions are inherently uncertain and subject to refinement. In particular, two significant models used in interest rate risk measurement address residential mortgage prepayment speeds and non-maturity deposit rate and balance behaviors. The mortgage prepayment model is periodically calibrated to reflect changes in customer behavior. Model performance may be adversely affected by rapid changes in interest rates, home prices and the credit environment. The deposit model uses the Company’s historical deposit pricing to forecast future deposit pricing in its scenarios. Management’s response to future rate scenarios may deviate from historic responses as the 2008 financial crisis may have changed future competitive responses and customer behaviors with respect to deposit repricing. Actual results may differ from those derived in the simulation analysis due to unexpected market events, unanticipated changes in customer behavior, market interest rates, product pricing, and investment, funding and hedging activities.

Investment Securities

Our ALM securities portfolio includes both securities available for sale and securities held to maturity. At March 31, 2017 and December 31, 2016, our ALM securities portfolio fair values were $23.6 billion and $22.7 billion, respectively. Our ALM securities portfolio is comprised of RMBS, Cash Flow CLOs, CMBS, U.S. Treasury securities and government-sponsored agency securities. The portfolio had an expected weighted average life of 4.5 years at March 31, 2017. At March 31, 2017, approximately $2.9 billion of the portfolio was pledged to secure trust and public deposits and for other purposes as required or permitted by law. During the first quarter of 2017, we purchased $2.4 billion and sold $0.6 billion of securities as part of our investment portfolio strategy, while $0.9 billion of ALM securities matured, were paid down, or were called.

Based on current prepayment projections, the estimated ALM securities portfolio’s effective duration was 3.9 years at March 31, 2017, compared with 4.0 years at December 31, 2016. Effective duration is a measure of price sensitivity of a bond portfolio to immediate parallel shifts in interest rates. An effective duration of 3.9 years suggests an expected price decrease of approximately 3.9% for an immediate 1.0% parallel increase in interest rates.

In addition to our ALM securities, our securities available for sale portfolio includes approximately $1.5 billion of direct bank purchase bonds that are largely managed within our Regional Bank and U.S. Wholesale Banking operating segments. These instruments are accounted for as securities, but underwritten as loans with terms that are closely aligned with traditional commercial loan features, and are subject to national bank regulatory lending authority standards. These instruments typically are not issued in bearer form, nor are they registered with the SEC or the Depository Trust Company. Additionally, these instruments generally contain certain transferability restrictions and are not assigned external credit ratings. 

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ALM and Other Risk Management Derivatives

The gross negative fair value of ALM derivatives increased during the three months endedMarch 31, 2017 primarily as a result of changes in interest rate swap rates. Other risk management derivatives are primarily used to manage non-interest rate related risks. For additional discussion of derivative instruments and our hedging strategies, see Note 9 to our Consolidated Financial Statements in Part I, Item 1. “Financial Statements” of this Form 10-Q.

(Dollars in millions)	March 31, 2017			December 31, 2016			Increase (Decrease)
Total gross notional amount of ALM and other risk management derivatives
ALM derivatives:
Interest rate swap receive fixed contracts	$	13,744		$	15,959		$	(2,215	)
Total ALM derivatives	13,744			15,959			(2,215		)
Other risk management derivatives	1,003			1,045			(42		)
Total ALM and other risk management derivatives	$	14,747		$	17,004		$	(2,257	)
Fair value of ALM and other risk management derivatives
ALM derivatives:
Gross positive fair value	$	7		$	22		$	(15	)
Gross negative fair value	230			199			31
Positive (negative) fair value of ALM derivatives, net	(223		)	(177		)	(46		)
Other risk management derivatives:
Gross positive fair value	17			3			14
Gross negative fair value	6			90			(84		)
Positive (negative) fair value of other risk management derivatives, net	11			(87		)	98
Positive (negative) fair value of ALM and other risk management derivatives, net	$	(212	)	$	(264	)	$	52

Trading Activities

Trading activities consist primarily of activities at MUAH's broker-dealer subsidiary, MUSA, and derivative contracts MUB enters into as a financial intermediary for customers. MUSA transacts as principal and agent for a variety of securities and exchange traded derivatives. By acting as a financial intermediary, MUB is able to provide our customers with access to a range of products from the securities, foreign exchange and derivatives markets. We generally take offsetting positions in these transactions to mitigate our exposure to market risk.

Consistent with our business strategy of focusing on the provision of capital markets services and products to customers utilizing customer relationships of the Company and its affiliates, we manage our trading risk exposures at levels adequate to support these activities. The Company monitors market risk from trading activities by utilizing a combination of position limits, VaR, and stop-loss limits, applied at an aggregated level and to various sub-components within those limits. Positions are controlled and reported both in notional and VaR terms. Our calculation of VaR estimates how high the loss in fair value might be, at a 99% confidence level, due to an adverse shift in market prices over a period of ten business days. VaR at the trading activity level is managed within the maximum limit of $38 million established by Board policy for total trading positions. The VaR model incorporates assumptions on key parameters, including holding period and historical volatility.

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The following table sets forth the average, high and low 10-day 99% confidence level VaR for our trading activities for the three months ended March 31, 2017. The IHC entities transferred on July 1, 2016 were included in our VaR calculations beginning in the third quarter of 2016.

(Dollars in millions)	March 31, 2017
Average VaR	$	9.1
High VaR	11.6
Low VaR	6.8

Consistent with our business strategy of focusing on the sale of capital markets products to customers, we manage our trading risk exposures at relatively low levels. Our foreign exchange business continues to derive the majority of its revenue from customer-related transactions.

The following table provides the fair value of our trading account portfolio as of March 31, 2017 and December 31, 2016, and the change in fair value between March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017		December 31, 2016		Increase (Decrease)
Fair value of trading account assets:
U.S. Treasury securities	$	1,902	$	1,730	$	172
Corporate bonds	1,273		841		432
Mortgage-backed securities	4,582		5,221		(639		)
Derivatives (including netting adjustment)	709		851		(142		)
Other	460		299		161
Trading account assets	$	8,926	$	8,942	$	(16	)
Fair value of trading account liabilities:
U.S. Treasury securities	$	2,113	$	1,973	$	140
Corporate bonds	474		298		176
Derivatives (including netting adjustment)	559		576		(17		)
Other	87		58		29
Trading account liabilities	$	3,233	$	2,905	$	328
Additional trading account derivative detail:
Total gross notional amount of positions held for trading purposes:
Interest rate contracts	$	145,724	$	149,229	$	(3,505	)
Commodity contracts	2,462		2,825		(363		)
Foreign exchange contracts	5,756		5,981		(225		)
Equity contracts	1,995		2,385		(390		)
Other contracts	21		4		17
Total	$	155,958	$	160,424	$	(4,466	)
Fair value of positions held for trading purposes:
Gross positive fair value	$	1,478	$	1,601	$	(123	)
Gross negative fair value	1,297		1,395		(98		)
Positive fair value of positions, net	$	181	$	206	$	(25	)

Notional amounts at March 31, 2017 also included $0.9 billion, $0.7 billion and $2.0 billion of foreign exchange, commodity and equity contracts, respectively, representing our exposure to the embedded bifurcated derivatives and the related hedges contained in our market-linked CDs.

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Liquidity Risk Management

Liquidity risk is the risk that an institution's financial condition or overall safety and soundness is adversely affected by an inability, or perceived inability, to meet its contractual, including contingent, obligations. The objective of liquidity risk management is to maintain a sufficient amount of liquidity and diversity of funding sources to allow an institution to meet obligations in both stable and adverse conditions.

The management of liquidity risk is governed by MUAH ALM and Liquidity Risk Management Policies. The MUAH ALM Policy is under the oversight of ALCO, which oversees first line liquidity risk management activities conducted by Treasury, and the Audit & Finance Committee of the Board. Treasury formulates the funding, liquidity and contingency planning strategies for the Company, the Bank and MUSA, and is responsible for identifying, managing and reporting on liquidity risk. The Liquidity Risk Management Policies for the Company, the Bank and MUSA are under the oversight of the ARC and the Risk Committee of the Board. MRM conducts independent oversight and governance of liquidity risk management activities to establish sound policies and effective risk and independent monitoring controls. We are also subject to a Contingency Funding Plan framework that identifies actions to be taken to help ensure adequate liquidity if an event should occur that disrupts or adversely affects the normal funding activities of the Company, the Bank or MUSA.

Liquidity risk is managed using a total balance sheet perspective that analyzes all sources and uses of liquidity including loans, investments, deposits and borrowings, as well as off-balance sheet exposures. Although we make an effort to diversify our sources of liquidity, as discussed below, we will be required to maintain a minimum amount of TLAC-eligible debt due to affiliates beginning January 1, 2019. Various tools are used to measure and monitor liquidity, including forecasting of the sources and uses of cash flows over multiple time horizons and stress testing of the forecasts under various scenarios. Stress testing, which incorporates both institution-specific, and systemic market scenarios, as well as a combination scenario that adversely affects the Company's liquidity position and profile, facilitates the identification of appropriate remedial measures to help ensure that the Company maintains adequate liquidity in adverse conditions. Such measures may include extending the maturity profile of liabilities, optimizing liability levels through pricing strategies, adding new funding sources, altering dependency on certain funding sources, adjusting asset growth and financing or selling assets.

We maintain a substantial level of available liquidity in the form of on-balance sheet and off-balance sheet funding sources. These include cash at the Federal Reserve, unencumbered liquid securities, and capacity to borrow on a secured basis at the FHLB of San Francisco and the Federal Reserve Bank’s Discount Window. Total unpledged securities increased by $1.5 billion to $20.7 billion at March 31, 2017 from $19.2 billion at December 31, 2016. As of March 31, 2017, the Bank had $1.6 billion of short-term borrowings outstanding with the FHLB of San Francisco, and the Bank had a remaining combined unused borrowing capacity from the FHLB of San Francisco and the Federal Reserve Bank of $28.5 billion.

Our primary funding sources are core customer deposits, secured FHLB advances, and unsecured short-term and long-term debt. Core deposits, which exclude brokered deposits, foreign time deposits, domestic time deposits greater than $250,000, and certain other deposits not considered to be core customer relationships, provide us with a sizable source of relatively stable and low-cost funds. At March 31, 2017, our core deposits totaled $80.7 billion and our total loan-to-total core deposit ratio was 97.2%. Total deposits were down$0.4 billion from $86.9 billion at December 31, 2016 to $86.5 billion at March 31, 2017.

The Bank maintains a $12.0 billion unsecured bank note program. Available funding under the bank note program was $5.9 billion at March 31, 2017. We do not have any firm commitments in place to sell additional notes under this program.

In addition to managing liquidity risk on a consolidated basis and at each of the major subsidiaries (the Bank and MUSA), we assess and monitor liquidity at the parent company (MUAH) and the other non-bank subsidiaries. The parent company maintains sufficient liquidity to meet expected obligations, without access to the wholesale funding markets or dividends from subsidiaries, for at least 20 months. As of March 31, 2017, the parent company’s liquidity exceeded 20 months.

MUAH issues debt securities through a $3.6 billion shelf registration statement with the SEC. As of March 31, 2017, $1.4 billion of debt or other securities were available for issuance. We do not have any firm commitments in place to sell additional securities under this shelf registration statement.

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MUAH also borrows, on a long-term basis, from BTMU. On March 28, 2017, MUAH entered into a Credit Agreement with BTMU under which MUAH borrowed $3.5 billion. Simultaneously with the funding of this loan on March 31, 2017, the Bank prepaid three other loans from BTMU totaling $3.5 billion. At March 31, 2017, MUAH’s total debt outstanding to BTMU totaled $4.4 billion. This compares with $845 million at December 31, 2016. MUAH maintains a $500 million, three-year unsecured committed line of credit from BTMU, which is available for contingent liquidity purposes. At March 31, 2017 and December 31, 2016, this line of credit was undrawn.

MUAH’s subsidiaries also may borrow on a long-term basis from BTMU and affiliates. As of March 31, 2017, the Company had total long-term debt issued to BTMU and affiliates of $6.0 billion, including $1.2 billion of subordinated debt with a capital component.

In December 2016, the Federal Reserve finalized rules imposing new TLAC requirements on GSIBs with operations in the U.S., such as MUFG. The final rule includes an Internal TLAC requirement which sets a minimum amount of loss-absorbing instruments, which must be issued by the Company to MUFG or BTMU (or another wholly-owned non-U.S. subsidiary of MUFG) due to MUFG's single point of entry resolution approach. These loss absorbing instruments are comprised of Tier 1 regulatory capital and long-term debt. TLAC Tier 1 regulatory capital is designed to absorb ongoing losses, while the conversion of TLAC-eligible long-term debt into common equity of the Company is designed to recapitalize the Company prior to any bankruptcy or insolvency proceedings. The Company will be required to comply with these new rules by January 1, 2019. The Company expects to restructure existing debt issued to BTMU and replace a portion of its externally-placed debt with the issuance of internal TLAC-eligible debt issued to BTMU or MUFG in order to comply with the new rules. See "Supervision and Regulation-Dodd-Frank Act and Related Regulations" in Part I, Item 1. in our 2016 Form 10-K.

The Company’s total wholesale funding included $10.8 billion of long term debt (excluding nonrecourse debt) and $3.5 billion of short-term debt at March 31, 2017. For additional information regarding our outstanding debt, refer to Note 6 and Note 7 to our Consolidated Financial Statements in Part I, Item 1. “Financial Statements” of this Form 10-Q. We evaluate and monitor the stability and reliability of our various funding sources to help ensure that we have sufficient liquidity in adverse circumstances.

Our costs and ability to raise funds in the capital markets are influenced by our credit ratings. The following table provides our credit ratings as of March 31, 2017:

		MUFG Union Bank, N.A.		MUFG Securities Americas Inc.	MUFG Americas Holdings Corporation
		Deposits	Senior Debt	Senior Debt	Senior Debt
Standard & Poor's	Long-term	—	A+	A+	A
	Short-term	—	A-1	A-1	A-1
Moody's	Long-term	Aa2	A2	—	A3
	Short-term	P-1	P-1	—	—
Fitch	Long-term	A+	A	A	A
	Short-term	F1	F1	F1	F1

For further information, including information about rating agency assessments, see “The Bank of Tokyo-Mitsubishi UFJ’s and Mitsubishi UFJ Financial Group’s credit ratings and financial or regulatory condition could adversely affect our operations” and "Our credit ratings are important in order to maintain liquidity" in Part I, Item 1A. "Risk Factors" in our 2016 Form 10-K.

The OCC, the Federal Reserve and the FDIC jointly adopted a final rule to implement a standardized quantitative liquidity requirement generally consistent with the LCR standards established by the BCBS. The LCR rule is designed to ensure that covered banking organizations maintain an adequate level of cash and HQLA, such as central bank reserves and government and corporate debt, to meet estimated net liquidity needs in a short-term stress scenario using liquidity inflow and outflow assumptions provided in the rule (net cash outflow). The phase-in period began on January 1, 2016, with full compliance required by January 1, 2017. At March 31, 2017, the Company was in compliance with the LCR requirements.

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For further information regarding this rule, see "Supervision and Regulation-Regulatory Capital and Liquidity Standards-Liquidity Coverage Ratio" in Part I, Item 1. and “The effects of changes or increases in, or supervisory enforcement of, banking or other laws and regulations or governmental fiscal or monetary policies could adversely affect us” in Part I, Item 1A. “Risk Factors” in our 2016 Form 10-K.

Operational Risk Management

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Operational risk includes legal risk, which includes exposure to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements, but excludes strategic and reputation risk. In particular, information security is a significant operational risk element for the Company and includes the risk of losses resulting from cyber attacks. See “We are subject to a wide array of operational risks, including, but not limited to, cyber-security risks” in Part I, Item 1A. “Risk Factors” in our 2016 Form 10-K. Operational risk is mitigated through a system of internal controls that are designed to keep these risks at appropriate levels. For additional information regarding our operational risk management policies, refer to the section “Operational Risk Management” included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2016 Form 10-K.

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Business Segments

We have five reportable segments: Regional Bank, U.S. Wholesale Banking, Transaction Banking, Investment Banking & Markets and MUFG Securities Americas Inc. For a more detailed description of these reportable segments, refer to Note 13 to our Consolidated Financial Statements included in Part I, Item 1. “Financial Statements” of this Form 10-Q. In January 2017, the management of MUFG Americas announced a realignment of its business model in the Americas, which includes MUAH. The realignment consolidates the customer base of the Investment Banking & Markets segment, including its products and services, into the activities performed within various other operating segments. The Company expects to implement this reorganization during the second quarter of 2017.

Unlike U.S. Generally Accepted Accounting Principles (GAAP), there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by our business units if they were unique economic entities. The information set forth in the tables that follow is prepared using various management accounting methodologies to measure the performance of the individual segments. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Beginning with the second quarter of 2016, the Company revised its methodology for allocating certain indirect costs to the segments. Beginning with the third quarter of 2016, the Company revised its funds transfer pricing methodology related to certain deposits. Prior period results have been updated to reflect these changes in methodology. Certain of the entities transferred to the IHC are not measured using a "market view" perspective. For a description of these methodologies, see Note 13 to our Consolidated Financial Statements included in Part I, Item 1. “Financial Statements” of this Form 10-Q.

Regional Bank

The Regional Bank offers a wide range of financial products and services to individuals and businesses on the West Coast. Capabilities are delivered through a network of retail and private banking offices, digital channels, relationship managers, call centers and ATMs.

Consumers have access to checking and deposit accounts, residential mortgage loans, consumer loans, home equity lines of credit, credit cards, bill and loan payment services, and merchant services. Additionally, online deposit savings products are offered through PurePoint Financial which provides services to customers online and through a call center and a network of financial centers.

Commercial clients with up to $1 billion in annual revenue have access to commercial and asset-based loans, and professional real estate developers are offered financing solutions for existing properties and construction projects. Through partnerships with other areas of the Bank, these clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

The Wealth Markets Division serves corporate, institutional, non-profit and individual clients. Products and services include wealth planning, trust and estate services, investment management, brokerage and private wealth management.

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The following table sets forth the results for the Regional Bank segment:

Regional Bank
	For the Three Months Ended   March 31,					Increase (Decrease)
(Dollars in millions)	2017		2016			Amount			Percent
Results of operations - Market View
Net interest income	$	498	$	475		$	23		5		%
Noninterest income	112		114			(2		)	(2	)
Total revenue	610		589			21			4
Noninterest expense	502		441			61			14
(Reversal of) provision for credit losses	2		(2		)	4			200
Income before income taxes and including noncontrolling interests	106		150			(44		)	(29	)
Income tax expense	23		42			(19		)	(45	)
Net income attributable to MUAH	$	83	$	108		$	(25	)	(23	)
Average balances - Market View
Total loans held for investment	$	59,609	$	56,965		$	2,644		5		%
Total assets	63,505		61,770			1,735			3
Total deposits	53,545		51,819			1,726			3

Net interest income increased during the first quarter of 2017 compared with the first quarter of 2016 primarily due to higher average loan balances as well as a higher funds transfer pricing credit due to higher average deposit balances. Noninterest expense increased in the first quarter of 2017 compared with the first quarter of 2016 due to higher allocated costs, the launch of PurePoint Financial, higher professional and outside services expense, and higher salary expense.

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U.S. Wholesale Banking

U.S. Wholesale Banking provides commercial lending products, including commercial loans, lines of credit and project financing, to corporate customers with revenues generally greater than $1 billion. The segment 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). By working with the Company's other segments, U.S. Wholesale Banking offers its customers a range of noncredit services, which include global treasury management, capital market solutions, and various foreign exchange, interest rate risk and commodity risk management products.

The following table sets forth the results for the U.S. Wholesale Banking segment:

U.S. Wholesale Banking
	For the Three Months Ended   March 31,					Increase (Decrease)
(Dollars in millions)	2017		2016			Amount			Percent
Results of operations - Market View
Net interest income	$	87	$	107		$	(20	)	(19	)	%
Noninterest income	104		29			75			259
Total revenue	191		136			55			40
Noninterest expense	53		49			4			8
Provision for credit losses	—		130			(130		)	(100	)
Income before income taxes and including noncontrolling interests	138		(43		)	181			421
Income tax expense (benefit)	55		(17		)	72			424
Net income attributable to MUAH	$	83	$	(26	)	$	109		419
Average balances - Market View
Total loans held for investment	$	10,017	$	13,797		$	(3,780	)	(27	)	%
Total assets	11,561		14,993			(3,432		)	(23	)
Total deposits	9,438		8,598			840			10

Net interest income decreased in the first quarter of 2017 compared with the first quarter of 2016 as lower average loan balances and declining yields in certain segments of the loan portfolio were offset by a higher funds transfer pricing credit on deposit balances. Noninterest income was higher due largely to transaction referral fees earned from a related party. The provision for credit losses in the first quarter of 2016 was primarily due to increased reserves for the oil and gas portfolio.

34

Transaction Banking

Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and institutional trust and custody, to the Company's customers. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations.

The following table sets forth the results for the Transaction Banking segment:

Transaction Banking
	For the Three Months Ended   March 31,				Increase (Decrease)
(Dollars in millions)	2017		2016		Amount			Percent
Results of operations - Market View
Net interest income	$	137	$	113	$	24		21		%
Noninterest income	39		46		(7		)	(15	)
Total revenue	176		159		17			11
Noninterest expense	111		120		(9		)	(8	)
Provision for credit losses	—		2		(2		)	(100	)
Income before income taxes and including noncontrolling interests	65		37		28			76
Income tax expense	26		14		12			86
Net income attributable to MUAH	$	39	$	23	$	16		70
Average balances - Market View
Total loans held for investment	$	62	$	60	$	2		3		%
Total assets	1,885		1,923		(38		)	(2	)
Total deposits	40,099		35,269		4,830			14

Transaction Banking earns revenue primarily from a net interest income funds transfer pricing credit on deposit liabilities, as well as service charges on deposit accounts and trust management fees. The increase in net interest income in the first quarter of 2017 compared with the first quarter of 2016 was driven by higher average deposit balances and an increase in the funds transfer pricing credit rate. The decrease in noninterest expense was due to a decrease in allocated expenses.

35

Investment Banking & Markets

Investment Banking & Markets, which includes Global Capital Markets of the Americas, works with the Company's other segments to provide customers structured credit services, including project finance, leasing and equipment finance, commercial finance, funds finance and securitizations. Investment Banking & Markets also provides capital markets solutions, including syndicated loans, equity and debt underwriting, tax equity and merchant banking investments; risk management solutions, including foreign exchange, interest rate and energy risk management solutions; and facilitates merchant and investment banking-related transactions.

The following table sets forth the results for the Investment Banking & Markets segment:

Investment Banking & Markets
	For the Three Months Ended   March 31,						Increase (Decrease)
(Dollars in millions)	2017			2016			Amount			Percent
Results of operations - Market View
Net interest income	$	42		$	56		$	(14	)	(25	)	%
Noninterest income	79			47			32			68
Total revenue	121			103			18			17
Noninterest expense	59			58			1			2
(Reversal of) provision for credit losses	(10		)	31			(41		)	(132	)
Income before income taxes and including noncontrolling interests	72			14			58			414
Income tax expense	(3		)	(19		)	16			84
Net income (loss) including noncontrolling interest	75			33			42			127
Deduct: Net (income) loss from noncontrolling interests	—			1			(1		)	(100	)
Net income attributable to MUAH	$	75		$	34		$	41		121
Average balances - Market View
Total loans held for investment	$	9,397		$	10,461		$	(1,064	)	(10	)	%
Total assets	13,718			14,531			(813		)	(6	)
Total deposits	634			761			(127		)	(17	)

The decrease in net interest income in the first quarter of 2017 compared with the first quarter of 2016 is primarily due to a decrease in average total loans held for investment. The increase in noninterest income is primarily due to oil and gas impairments recorded in the first quarter of 2016 as well as transaction referral fees earned from a related party in the first quarter of 2017. The reversal of provision in the current quarter was due to a general improvement in customer credit quality. The provision for credit losses in the first quarter of 2016 was largely due to the deterioration in credit quality of certain energy customers affected by low oil and gas prices.

36

MUFG Securities Americas Inc.

MUSA is MUAH's broker-dealer subsidiary which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equity securities transactions.

The following table sets forth the results for the MUSA segment:

MUSA
	For the Three Months Ended   March 31,				Increase (Decrease)
(Dollars in millions)	2017		2016		Amount			Percent
Results of operations - Market View
Net interest income	$	59	$	25	$	34		136		%
Noninterest income	84		71		13			18
Total revenue	143		96		47			49
Noninterest expense	105		86		19			22
(Reversal of) provision for credit losses	—		—		—			—
Income before income taxes and including noncontrolling interests	38		10		28			280
Income tax expense	15		4		11			275
Net income attributable to MUAH	$	23	$	6	$	17		283
Average balances - Market View
Total loans held for investment	$	—	$	—	$	—		—		%
Total assets	30,732		36,088		(5,356		)	(15	)
Total deposits	—		—		—			—

Net interest income increased in the first quarter of 2017 compared with the first quarter of 2016, primarily due to higher yields on securities borrowed and purchased under resale agreements and higher balances and yields on trading account assets. Noninterest income increased due to higher investment banking fees. Noninterest expense increased due to increases in salaries and employee benefits expense resulting from increased head count.

37

Other

"Other" includes the Asian Corporate Banking segment, which offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan or other Asian countries; Corporate Treasury, which is responsible for ALM, wholesale funding, and the ALM investment securities and derivatives hedging portfolios; and certain corporate activities of the Company.

In addition, "Other" includes the elimination of duplicative results from the internal management "market view" perspective; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; fees from affiliates and noninterest expenses associated with BTMU's U.S. branch banking operations; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and FDIC covered assets.

The following table sets forth the results for Other:

Other
	For the Three Months Ended   March 31,						Increase (Decrease)
(Dollars in millions)	2017			2016			Amount			Percent
Results of operations - Market View
Net interest income	$	(28	)	$	(52	)	$	24		46		%
Noninterest income	70			167			(97		)	(58	)
Total revenue	42			115			(73		)	(63	)
Noninterest expense	176			214			(38		)	(18	)
(Reversal of) provision for credit losses	(22		)	1			(23		)	nm
Income before income taxes and including noncontrolling interests	(112		)	(100		)	(12		)	(12	)
Income tax (benefit)	(33		)	(6		)	(27		)	(450	)
Net income (loss) including noncontrolling interests	(79		)	(94		)	15			16
Deduct: net loss from noncontrolling interests	5			11			(6		)	(55	)
Net income attributable to MUAH	$	(74	)	$	(83	)	$	9		11
Average balances - Market View
Total loans held for investment	$	(1,103	)	$	(1,200	)	$	97		8		%
Total assets	28,162			25,399			2,763			11
Total deposits	(17,564		)	(12,479		)	(5,085		)	(41	)

38

Critical Accounting Estimates

MUAH’s consolidated financial statements are prepared in accordance with GAAP, which includes management estimates and judgments. The financial information contained within our statements is, to a significant extent, financial information that is based on estimates used to measure the financial effects of transactions and events that have already occurred. A variety of factors could affect the ultimate value that is obtained either when earning income, recognizing an expense, recovering an asset or relieving a liability. For example, we use discount factors and other assumptions to measure certain assets and liabilities. A change in the discount factor or other important assumptions could significantly increase or decrease the reported amounts of those assets and liabilities and result in either a beneficial or an adverse impact to our financial results. We use historical loss factors, adjusted for current conditions, to estimate the credit losses inherent in our loan and lease portfolios held for investment and certain off-balance sheet commitments on the balance sheet date. Actual losses could differ significantly from the loss factors that we use. Other significant estimates that we use include the valuation of certain derivatives and securities, the assumptions used in measuring our transfer pricing revenue, pension obligations, goodwill impairment, and assumptions regarding our effective tax rates.

Management has reviewed and approved these critical accounting policies and has discussed these policies with the Audit & Finance Committee.

Understanding our accounting policies is fundamental to understanding our consolidated financial condition and consolidated results of operations. Accordingly, both our critical accounting estimates and our significant accounting policies are discussed in detail in our 2016 Form 10-K. There have been no material changes to these critical accounting estimates during the first quarter of 2017.

Non-GAAP Financial Measures

The following tables present reconciliations between certain Generally Accepted Accounting Principles (GAAP) amounts and specific non-GAAP measures as used to compute selected non-GAAP financial ratios. References to the privatization transaction in this report refer to the transaction on November 4, 2008, when we became a privately held company. All of our issued and outstanding shares of common stock are owned by BTMU and MUFG.

The following table shows the calculation of return on average MUAH tangible common equity for the three months endedMarch 31, 2017 and 2016:

	For the Three Months Ended
(Dollars in millions)	March 31, 2017			March 31, 2016
Net income attributable to MUAH	$	229		$	62
Add: intangible asset amortization, net of tax	4			4
Net income attributable to MUAH, excluding intangible asset amortization (a)	$	233		$	66
Average MUAH stockholders' equity	$	17,487		$	16,692
Less: Goodwill	3,225			3,225
Less: Intangible assets, except mortgage servicing rights	220			186
Less: Deferred tax liabilities related to goodwill and intangible assets	(75		)	(44		)
Tangible common equity (b)	$	14,117		$	13,325
Return on average MUAH tangible common equity (1)  (a)/(b)	6.64		%	1.94		%

(1)     Annualized.

39

The adjusted efficiency ratio is a non-GAAP financial measure used by management to measure the efficiency of our operations, focusing on those costs management believes to be most relevant to our core business activities. Productivity initiative costs include salaries and benefits associated with operational efficiency enhancements. The following table shows the calculation of this ratio for the three months endedMarch 31, 2017 and 2016.

	For the Three Months Ended
(Dollars in millions)	March 31, 2017			March 31, 2016
Noninterest Expense	$	1,006		$	968
Less: Staff costs associated with fees from affiliates - support services	147			139
Less: Foreclosed asset expense and other credit costs	—			(1		)
Less: Productivity initiative costs	14			12
Less: LIHC investment amortization expense	2			1
Less: Expenses of the LIHC consolidated VIEs	5			12
Less: Merger and business integration costs	3			5
Less: Net adjustments related to privatization transaction	3			5
Less: Intangible asset amortization	4			3
Less: Contract termination fee	2			—
Noninterest expense, as adjusted (a)	$	826		$	792
Total Revenue	$	1,283		$	1,198
Add: Net interest income taxable-equivalent adjustment	9			6
Less: Fees from affiliates - support services	158			149
Less: Productivity initiative gains	4			—
Less: Accretion related to privatization-related fair value adjustments	2			5
Less: Other credit costs	(1		)	(13		)
Less: Impairment on private equity investments	5			(12		)
Total revenue, as adjusted (b)	$	1,124		$	1,075
Adjusted efficiency ratio (a)/(b)	73.42		%	73.72		%

40

Disclosure of Iranian Activities under Section 13(r) of the Securities Exchange Act of 1934

We are disclosing the following information pursuant to Section 13(r) of the Securities Exchange Act of 1934 (Exchange Act), which requires an issuer to disclose whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with natural persons or entities designated by the U.S. government under specified Executive Orders. The scope of activities that must be reported includes activities not prohibited by U.S. law and conducted outside the United States in compliance with applicable local law. Because we are indirectly wholly-owned by MUFG, a Japanese corporation, our disclosure includes activities, transactions or dealings conducted outside the United States by non-U.S. affiliates of MUFG which are not controlled by us. We have requested that MUFG provide us a description of reportable activity under Section 13(r) and have received the following information:

During the quarter ended March 31, 2017, a non-U.S. subsidiary of MUFG engaged in business activities with entities in, or affiliated with, Iran, including counterparties owned or controlled by the Iranian government. Specifically, MUFG’s non-U.S. banking subsidiary, BTMU, issued letters of credit and guarantees and provided remittance and other settlement services mainly in connection with customer transactions related to the purchase and exportation of Iranian crude oil to Japan, and in some cases, in connection with other petroleum-related transactions with Iran by its customers. These transactions did not involve U.S. dollars nor clearing services of U.S. banks for the settlement of payments. For the quarter ended March 31, 2017, the aggregate interest and fee income relating to these transactions was less than ¥30 million, representing less than 0.005 percent of MUFG’s total interest and fee income. Some of these transactions were conducted through the use of non-U.S. dollar correspondent accounts and other similar settlement accounts maintained with BTMU outside the United States by Iranian financial institutions and other entities in, or affiliated with, Iran. In addition to such accounts, BTMU receives deposits in Japan from, and provides settlement services in Japan to, fewer than ten Iranian government-related entities and fewer than 100 Iranian government-related individuals such as Iranian diplomats, and maintains settlement accounts outside the United States for certain other financial institutions specified in Executive Order 13382, which settlement accounts were frozen in accordance with applicable laws and regulations. For the quarter ended March 31, 2017, the average aggregate balance of deposits held in these accounts represented less than 0.09 percent of the average balance of MUFG’s total deposits. The fee income from the transactions attributable to these account holders was less than ¥3 million, representing less than 0.001 percent of MUFG’s total fee income. BTMU also holds loans that were arranged prior to changes in applicable laws and regulations to borrowers in, or affiliated with, Iran, including entities owned by the Iranian government, the outstanding balance of which was less than ¥200 million, representing less than 0.001 percent of MUFG’s total loans, as of March 31, 2017. For the quarter ended March 31, 2017, the aggregate gross interest and fee income relating to these loan transactions was less than ¥20 million, representing less than 0.005 percent of MUFG’s total interest and fee income.

We understand that BTMU will continue to participate in these types of transactions. Following the international relaxation of sanctions against Iran in January 2016, we understand that the balance of non-U.S. dollar correspondent accounts described above at BTMU has increased, but that BTMU recognizes that such transactions remain subject to compliance with applicable U.S. and Japanese regulations and remaining Japanese and international sanctions.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

A discussion of our market risk exposure is incorporated by reference to Part I, Item 2. of this Form 10-Q under the caption “Risk Management - Market Risk Management” and to Part II, Item 1A. of this Form 10-Q under the caption “Risk Factors.”

41

Item 4.   Controls and Procedures

Disclosure Controls and Procedures. As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of the Company's management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that these disclosure controls and procedures were effective.

Internal Control Over Financial Reporting. During the first quarter of 2017, there were no changes in our internal control over financial reporting that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

42

PART I. FINANCIAL INFORMATION

Item 1.   Financial Statements

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	For the Three Months Ended   March 31,
(Dollars in millions)	2017			2016
Interest Income
Loans	$	708		$	706
Securities	129			110
Securities borrowed or purchased under resale agreements	63			50
Trading assets	74			22
Other	10			6
Total interest income	984			894
Interest Expense
Deposits	49			49
Commercial paper and other short-term borrowings	8			3
Long-term debt	57			73
Securities loaned or sold under repurchase agreements	59			32
Trading liabilities	16			13
Total interest expense	189			170
Net Interest Income	795			724
(Reversal of) provision for credit losses	(30		)	162
Net interest income after (reversal of) provision for credit losses	825			562
Noninterest Income
Service charges on deposit accounts	48			49
Trust and investment management fees	29			32
Trading account activities	(4		)	28
Securities gains, net	2			13
Credit facility fees	26			27
Brokerage commissions and fees	18			19
Card processing fees, net	11			9
Investment banking and syndication fees	88			61
Fees from affiliates	219			212
Other, net	51			24
Total noninterest income	488			474
Noninterest Expense
Salaries and employee benefits	615			595
Net occupancy and equipment	82			81
Professional and outside services	116			105
Software	46			37
Regulatory assessments	20			14
Intangible asset amortization	7			7
Other	120			129
Total noninterest expense	1,006			968
Income before income taxes and including noncontrolling interests	307			68
Income tax expense	83			18
Net Income Including Noncontrolling Interests	224			50
Deduct: Net loss from noncontrolling interests	5			12
Net Income Attributable to MUAH	$	229		$	62

See accompanying notes to consolidated financial statements.

43

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

	For the Three Months Ended March 31,
(Dollars in millions)	2017			2016
Net Income Attributable to MUAH	$	229		$	62
Other Comprehensive Income (Loss), Net of Tax:
Net change in unrealized gains (losses) on cash flow hedges	(30		)	132
Net change in unrealized gains (losses) on investment securities	35			90
Foreign currency translation adjustment	1			4
Pension and other postretirement benefit adjustments	7			10
Other	—			(2		)
Total other comprehensive income (loss)	13			234
Comprehensive Income (Loss) Attributable to MUAH	242			296
Comprehensive loss from noncontrolling interests	(5		)	(12		)
Total Comprehensive Income (Loss)	$	237		$	284

See accompanying notes to consolidated financial statements.

44

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(Dollars in millions, except per share amount)	March 31, 2017			December 31, 2016
Assets
Cash and due from banks	$	1,736		$	1,909
Interest bearing deposits in banks	3,091			3,844
Total cash and cash equivalents	4,827			5,753
Securities borrowed or purchased under resale agreements	19,992			19,747
Trading account assets (includes $1,027 at March 31, 2017 and $1,122 at December 31, 2016 pledged as collateral that may be repledged)	8,926			8,942
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)	14,925			14,141
Securities held to maturity (Fair value $10,348 at March 31, 2017 and $10,316 at December 31, 2016)	10,374			10,337
Loans held for investment	78,434			77,551
Allowance for loan losses	(570		)	(639		)
Loans held for investment, net	77,864			76,912
Premises and equipment, net	618			591
Goodwill	3,225			3,225
Other assets	8,927			8,496
Total assets	$	149,678		$	148,144
Liabilities
Deposits:
Noninterest bearing	$	35,020		$	35,654
Interest bearing	51,513			51,293
Total deposits	86,533			86,947
Securities loaned or sold under repurchase agreements	25,079			24,616
Commercial paper and other short-term borrowings	3,487			2,360
Long-term debt	11,333			11,410
Trading account liabilities	3,233			2,905
Other liabilities	2,383			2,520
Total liabilities	132,048			130,758
Commitments, contingencies and guarantees—See Note 12
Equity
MUAH stockholders' equity:
Preferred stock:
Authorized 5,000,000 shares; no shares issued or outstanding	—			—
Common stock, par value $1 per share:
Authorized 300,000,000 shares, 144,322,280 shares issued and outstanding as of March 31, 2017 and December 31, 2016	144			144
Additional paid-in capital	7,892			7,884
Retained earnings	10,331			10,101
Accumulated other comprehensive loss	(883		)	(896		)
Total MUAH stockholders' equity	17,484			17,233
Noncontrolling interests	146			153
Total equity	17,630			17,386
Total liabilities and equity	$	149,678		$	148,144

See accompanying notes to consolidated financial statements.

45

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders' Equity

(Unaudited)

	MUAH Stockholders' Equity
(Dollars in millions)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests			Total Equity
Balance December 31, 2015	$	144	$	7,868	$	9,116	$	(750	)	$	215		$	16,593
Net income (loss)	—		—		62		—			(12		)	50
Other comprehensive income (loss), net of tax	—		—		—		234			—			234
Compensation—restricted stock units	—		10		—		—			—			10
Other	—		—		—		—			7			7
Net change	—		10		62		234			(5		)	301
Balance March 31, 2016	$	144	$	7,878	$	9,178	$	(516	)	$	210		$	16,894
Balance December 31, 2016	$	144	$	7,884	$	10,101	$	(896	)	$	153		$	17,386
Net income (loss)	—		—		229		—			(5		)	224
Other comprehensive income (loss), net of tax	—		—		—		13			—			13
Compensation—restricted stock units	—		8		1		—			—			9
Other	—		—		—		—			(2		)	(2		)
Net change	—		8		230		13			(7		)	244
Balance March 31, 2017	$	144	$	7,892	$	10,331	$	(883	)	$	146		$	17,630

See accompanying notes to consolidated financial statements.

46

MUFG Americas Holdings Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	For the Three Months Ended March 31,
(Dollars in millions)	2017			2016
Cash Flows from Operating Activities:
Net income including noncontrolling interests	$	224		$	50
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Reversal of) provision for credit losses	(30		)	162
Depreciation, amortization and accretion, net	80			87
Stock-based compensation—restricted stock units	14			15
Deferred income taxes	31			(16		)
Net gains on sales of securities	(2		)	(13		)
Net decrease (increase) in securities borrowed or purchased under resale agreements	(245		)	2,962
Net decrease (increase) in securities loaned or sold under repurchase agreements	463			(1,930		)
Net decrease (increase) in trading account assets	16			(1,895		)
Net decrease (increase) in other assets	(568		)	239
Net increase (decrease) in trading account liabilities	328			663
Net increase (decrease) in other liabilities	(27		)	7
Loans originated for sale	(146		)	(519		)
Net proceeds from sale of loans originated for sale	208			514
Pension and other benefits adjustment	(127		)	(149		)
Other, net	(12		)	8
Total adjustments	(17		)	135
Net cash provided by (used in) operating activities	207			185
Cash Flows from Investing Activities:
Proceeds from sales of securities available for sale	608			1,658
Proceeds from paydowns and maturities of securities available for sale	567			378
Purchases of securities available for sale	(2,018		)	(610		)
Proceeds from paydowns and maturities of securities held to maturity	408			360
Purchases of securities held to maturity	(499		)	(866		)
Proceeds from sales of loans	347			49
Net decrease (increase) in loans	(1,194		)	(1,588		)
Purchases of other investments	(14		)	(67		)
Other, net	27			(77		)
Net cash provided by (used in) investing activities	(1,768		)	(763		)
Cash Flows from Financing Activities:
Net increase (decrease) in deposits	(425		)	5,149
Net increase (decrease) in commercial paper and other short-term borrowings	1,145			(246		)
Proceeds from issuance of senior debt due to BTMU	3,521			—
Repayment of long-term debt	(3,602		)	(565		)
Other, net	(2		)	(15		)
Change in noncontrolling interests	(2		)	8
Net cash provided by (used in) financing activities	635			4,331
Net change in cash and cash equivalents	(926		)	3,753
Cash and cash equivalents at beginning of period	5,753			4,807
Cash and cash equivalents at end of period	$	4,827		$	8,560
Cash Paid During the Period For:
Interest	$	187		$	138
Income taxes, net	22			50
Supplemental Schedule of Noncash Investing and Financing Activities:
Net transfer of loans held for investment to (from) loans held for sale	230			(81		)

See accompanying notes to consolidated financial statements.

47

Note 1—Summary of Significant Accounting Policies and Nature of Operations

MUFG Americas Holdings Corporation (MUAH) is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUFG Securities Americas Inc. (MUSA) (formerly Mitsubishi UFJ Securities (USA), Inc.). MUAH provides a wide range of financial services to consumers, small businesses, middle-market companies and major corporations nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The unaudited Consolidated Financial Statements of MUFG Americas Holdings Corporation, its subsidiaries, and its consolidated variable interest entities (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the SEC. However, they do not include all of the disclosures necessary for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the first quarter of 2017 are not necessarily indicative of the operating results anticipated for the full year. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Form 10-K).

The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management’s expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company’s results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company’s financial statements include, but are not limited to, the allowance for credit losses (Note 3), goodwill impairment, fair value of financial instruments (Note 8), hedge accounting (Note 9), pension accounting (Note 11), income taxes, and transfer pricing.

Recently Issued Accounting Pronouncements

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the ASU requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to interim and annual periods beginning on January 1, 2018, with early adoption permitted in 2017. The Company plans to apply the modified retrospective method upon adoption on January 1, 2018. As part of our implementation progress to date, we have completed the impact assessment phase and are evaluating potential changes to processes and controls. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends the accounting, presentation, and disclosure requirements for certain financial instruments. The ASU requires that all equity investments be recorded at fair value through net income (other than those accounted for under equity method or result in consolidation of the investee); however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus

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Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability under the fair value option. The ASU also clarifies that an entity must evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. In addition, the ASU amends the presentation and disclosure requirements for financial instruments and now requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted for the amendments to the accounting for financial liabilities under the fair value option. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases, which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases.  The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases.  The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. The Company plans to adopt the ASU on January 1, 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. The Company has recently begun the planning phase for this project and management is in the initial stage of policy development and issue identification. Management is currently evaluating technology solutions and assessing accounting for the current lease portfolio under the new ASU.

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The ASU amends ASU 2014-09, Revenue from Contracts with Customers, with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. The ASU is effective upon the adoption of ASU 2014-09, which is effective for periods beginning January 1, 2018, with early adoption permitted in 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides new guidance on the accounting for credit losses for instruments that are within its scope. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. In the second quarter the Company plans to begin a current state gap analysis,

49

Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

which will be followed by collecting business and data requirements to support the project planning phase of the implementation.

Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, to address diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company's statement of cash flows.

Income Tax Consequences of Intra-Entity Asset Transfers

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity assets other than inventory. The ASU will require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect adoption of this guidance to significantly impact the Company's financial position and results of operations.

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, Restricted Cash, to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and the amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective for interim and annual periods beginning on January 1, 2018 using a retrospective transition method. Early adoption is permitted. Management does not expect the adoption of this guidance to have a significant impact on the Company's statement of cash flows.

Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which specifies when a set of assets and activities constitutes a business. The ASU adds a “screen” to determine when a set is not a business, thus reducing the number of transactions deemed businesses. Specifically, if the fair value of the gross assets acquired is concentrated in a single identifiable asset (or a group of similar identifiable assets), the set is not deemed a business. Otherwise, to be considered a business, a set must include at least one input and a substantive process that together significantly contribute to the ability to create outputs.  Although outputs are not required to be a business, the ASU narrows the definition of an output and limits the instances where sets that lack outputs are deemed businesses. The ASU is effective for interim and annual periods prospectively beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Amendments to SEC Paragraphs Pursuant to Staff Announcements at EITF Meetings

In January 2017, the FASB issued ASU 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments clarify the SEC staff’s expectations about the extent of disclosures registrants should make about the effects of ASU 2014-09, Revenue from Contracts with Customers, ASU 2016-02, Leases, and ASU 2016-13, Measurement of Credit Losses on Financial Instruments, particularly where the registrant cannot reasonably estimate the ASU’s anticipated impact on the financial statements. The amendments also clarify the SEC staff’s view that the use of the proportional amortization method must be consistently applied and it may not be extended, by analogy, to other investments that are not investments in qualified affordable housing projects. The ASU is effective upon issuance. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

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Note 1—Summary of Significant Accounting Policies and Nature of Operations (Continued)

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Early adoption is permitted for any impairment tests performed after January 1, 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of

Nonfinancial Assets

In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets (issued as part of ASU 2014-09), and provide guidance on partial sales of nonfinancial assets. The ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an “in substance nonfinancial asset” is within the scope of ASC 610-20. The ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASU is effective upon the adoption of ASU 2014-09, which the Company plans to adopt beginning January 1, 2018. It allows an entity to use either a retrospective or modified retrospective approach. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans.  The ASU  also now mandates that only the service cost component of net benefit cost is eligible for capitalization on certain internally produced assets. The ASU is effective for interim and annual periods beginning January 1, 2018, with retrospective application for the new income statement presentation requirements and prospective application for the new capitalization requirement. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

51

Note 2—Securities

Securities Available for Sale

At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.

	March 31, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	2,920	$	2	$	109	$	2,813
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	7,474		5		101		7,378
Privately issued	431		1		6		426
Privately issued - commercial mortgage-backed securities	664		5		6		663
Collateralized loan obligations	1,985		13		1		1,997
Other	7		—		—		7
Asset Liability Management securities	13,481		26		223		13,284
Other debt securities:
Direct bank purchase bonds	1,528		39		24		1,543
Other	94		—		1		93
Equity securities	5		—		—		5
Total securities available for sale	$	15,108	$	65	$	248	$	14,925

	December 31, 2016
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	2,625	$	1	$	121	$	2,505
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	6,814		3		122		6,695
Privately issued	333		1		7		327
Privately issued - commercial mortgage-backed securities	666		4		6		664
Collateralized loan obligations	2,219		4		5		2,218
Other	7		—		—		7
Asset Liability Management securities	12,664		13		261		12,416
Other debt securities:
Direct bank purchase bonds	1,601		41		29		1,613
Other	108		—		1		107
Equity securities	5		—		—		5
Total securities available for sale	$	14,378	$	54	$	291	$	14,141

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Note 2—Securities (Continued)

The Company’s securities available for sale with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more.

	March 31, 2017
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	2,270	$	109	$	—	$	—	$	2,270	$	109
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,567		93		606		8		6,173		101
Privately issued	249		5		26		1		275		6
Privately issued - commercial mortgage-backed securities	371		6		11		—		382		6
Collateralized loan obligations	168		—		129		1		297		1
Asset Liability Management securities	8,625		213		772		10		9,397		223
Other debt securities:
Direct bank purchase bonds	193		6		539		18		732		24
Other	91		1		5		—		96		1
Total securities available for sale	$	8,909	$	220	$	1,316	$	28	$	10,225	$	248

	December 31, 2016
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	2,257	$	121	$	—	$	—	$	2,257	$	121
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,501		113		667		9		6,168		122
Privately issued	249		6		29		1		278		7
Privately issued - commercial mortgage-backed securities	415		6		11		—		426		6
Collateralized loan obligations	75		—		1,077		5		1,152		5
Other	—		—		1		—		1		—
Asset Liability Management securities	8,497		246		1,785		15		10,282		261
Other debt securities:
Direct bank purchase bonds	386		12		499		17		885		29
Other	36		1		—		—		36		1
Equity securities	—		—		5		—		5		—
Total securities available for sale	$	8,919	$	259	$	2,289	$	32	$	11,208	$	291

At March 31, 2017, the Company did not have the intent to sell any securities in an unrealized loss position before a recovery of the amortized cost, which may be at maturity. The Company also believes that it is more likely than not that it will not be required to sell the securities prior to recovery of amortized cost.

Agency residential mortgage-backed securities consist of securities guaranteed by a U.S. government agency or a government-sponsored agency such as Fannie Mae, Freddie Mac or Ginnie Mae. These securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. The unrealized losses on agency residential mortgage-backed securities resulted from changes in interest rates and not from changes in credit quality. At March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities because the Company determined that the strength of the issuers’ guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses.

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Note 2—Securities (Continued)

Commercial mortgage-backed securities are collateralized by commercial mortgage loans and are generally subject to prepayment penalties. The unrealized losses on commercial mortgage-backed securities resulted from higher market yields since purchase. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities.

The Company’s CLOs consist of Cash Flow CLOs. A Cash Flow CLO is a structured finance product that securitizes a diversified pool of loan assets into multiple classes of notes. Cash Flow CLOs pay the note holders through the receipt of interest and principal repayments from the underlying loans unlike other types of CLOs that pay note holders through the trading and sale of underlying collateral. Unrealized losses typically arise from widening credit spreads and deteriorating credit quality of the underlying collateral. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities.

Other debt securities primarily consist of direct bank purchase bonds, which are not rated by external credit rating agencies. The unrealized losses on these bonds resulted from a higher return on capital expected by the secondary market compared with the return on capital required at the time of origination when the bonds were purchased. The Company estimates the unrealized loss for each security by assessing the underlying collateral of each security. The Company estimates the portion of loss attributable to credit based on the expected cash flows of the underlying collateral using estimates of current key assumptions, such as probability of default and loss severity. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost and potential impairment is identified. Based on the analysis performed as of March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities.

The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	March 31, 2017
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
U.S. Treasury	$	—	$	393	$	2,420	$	—	$	2,813
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		9		301		7,068		7,378
Privately issued	—		1		—		425		426
Privately issued - commercial mortgage-backed securities	—		—		—		663		663
Collateralized loan obligations	—		—		1,020		977		1,997
Other	1		1		5		—		7
Asset Liability Management securities	1		404		3,746		9,133		13,284
Other debt securities:
Direct bank purchase bonds	4		428		719		392		1,543
Other	—		67		—		26		93
Total debt securities available for sale	$	5	$	899	$	4,465	$	9,551	$	14,920

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Note 2—Securities (Continued)

The gross realized gains and losses from sales of available for sale securities for the three months endedMarch 31, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.

	For the Three Months Ended March 31,
(Dollars in millions)	2017		2016
Gross realized gains	$	2	$	13
Gross realized losses	—		—

Securities Held to Maturity

At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.

	March 31, 2017
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	493	$	—	$	—	$	493	$	4	$	—	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,342		2		38		8,306		32		98		8,240
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,636		—		61		1,575		43		7		1,611
Total securities held to maturity	$	10,471	$	2	$	99	$	10,374	$	79	$	105	$	10,348

	December 31, 2016
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	492	$	—	$	—	$	492	$	5	$	—	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,301		3		41		8,263		34		96		8,201
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,645		—		63		1,582		43		7		1,618
Total securities held to maturity	$	10,438	$	3	$	104	$	10,337	$	82	$	103	$	10,316

Amortized cost is defined as the original purchase cost, adjusted for any accretion or amortization of a purchase discount or premium, less principal payments and any impairment previously recognized in earnings. The carrying amount is the difference between the amortized cost and the amount recognized in OCI. The amount recognized in OCI primarily reflects the unrealized gain or loss at date of transfer from available for sale to the held to maturity classification, net of amortization, which is recorded in interest income on securities.

55

Note 2—Securities (Continued)

The Company’s securities held to maturity with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more.

	March 31, 2017
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	4,977	$	—	$	96	$	1,324	$	38	$	2	$	6,301	$	38	$	98
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	109		—		2		1,445		61		5		1,554		61		7
Total securities held to maturity	$	5,086	$	—	$	98	$	2,769	$	99	$	7	$	7,855	$	99	$	105

	December 31, 2016
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	4,492	$	—	$	92	$	1,386	$	41	$	4	$	5,878	$	41	$	96
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	111		—		1		1,448		63		6		1,559		63		7
Total securities held to maturity	$	4,603	$	—	$	93	$	2,834	$	104	$	10	$	7,437	$	104	$	103

56

Note 2—Securities (Continued)

The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	March 31, 2017
	Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	493	$	497	$	—	$	—	$	—	$	—	$	493	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		326		324		7,980		7,916		8,306		8,240
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	299		309		558		581		718		721		1,575		1,611
Total securities held to maturity	$	792	$	806	$	884	$	905	$	8,698	$	8,637	$	10,374	$	10,348

Securities Pledged and Received as Collateral

At March 31, 2017 and December 31, 2016, the Company pledged $12.4 billion and $12.1 billion, respectively, of available for sale and trading securities as collateral, of which $1.2 billion and $1.3 billion, respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions, securities loaned or sold under repurchase agreements, short term borrowings and to secure public and trust department deposits.

At March 31, 2017 and December 31, 2016, the Company received $30.5 billion and $31.6 billion, respectively, of collateral, of which $30.5 billion and $31.6 billion, respectively, was permitted to be sold or repledged. Of the collateral received, the Company sold or repledged $29.1 billion and $30.5 billion at March 31, 2017 and December 31, 2016, respectively, for derivative asset positions and securities borrowed or purchased under resale agreements.

For further information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to the Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" in our 2016 Form 10-K.

Note 3—Loans and Allowance for Loan Losses

The following table provides the outstanding balances of loans at March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017			December 31, 2016
Loans held for investment:
Commercial and industrial	$	25,602		$	25,379
Commercial mortgage	14,468			14,625
Construction	2,040			2,283
Lease financing	1,779			1,819
Total commercial portfolio	43,889			44,106
Residential mortgage	31,162			29,922
Home equity and other consumer loans	3,383			3,523
Total consumer portfolio	34,545			33,445
Total loans held for investment(1)	78,434			77,551
Allowance for loan losses	(570		)	(639		)
Loans held for investment, net	$	77,864		$	76,912

(1) Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

Allowance for Loan Losses

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Commercial			Consumer			Unallocated		Total
Allowance for loan losses, beginning of period	$	556		$	83		$	—	$	639
(Reversal of) provision for loan losses	(26		)	12			—		(14		)
Other	1			—			—		1
Loans charged-off	(55		)	(11		)	—		(66		)
Recoveries of loans previously charged-off	9			1			—		10
Allowance for loan losses, end of period	$	485		$	85		$	—	$	570

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	653		$	50		$	20		$	723
(Reversal of) provision for loan losses	171			7			(20		)	158
Other	4			—			—			4
Loans charged-off	(8		)	(1		)	—			(9		)
Recoveries of loans previously charged-off	4			1			—			5
Allowance for loan losses, end of period	$	824		$	57		$	—		$	881

57

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in millions)	Commercial		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	117	$	20	$	137
Collectively evaluated for impairment	368		65		433
Total allowance for loan losses	$	485	$	85	$	570
Loans held for investment:
Individually evaluated for impairment	$	638	$	372	$	1,010
Collectively evaluated for impairment	43,251		34,173		77,424
Total loans held for investment	$	43,889	$	34,545	$	78,434

	December 31, 2016
(Dollars in millions)	Commercial		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	151	$	17	$	168
Collectively evaluated for impairment	405		66		471
Total allowance for loan losses	$	556	$	83	$	639
Loans held for investment:
Individually evaluated for impairment	$	636	$	386	$	1,022
Collectively evaluated for impairment	43,470		33,059		76,529
Total loans held for investment	$	44,106	$	33,445	$	77,551

Nonaccrual and Past Due Loans

The following table presents nonaccrual loans as of March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017		December 31, 2016
Commercial and industrial	$	400	$	458
Commercial mortgage	33		31
Total commercial portfolio	433		489
Residential mortgage	110		171
Home equity and other consumer loans	26		29
Total consumer portfolio	136		200
Total nonaccrual loans	$	569	$	689
Troubled debt restructured loans that continue to accrue interest	$	336	$	215
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	301	$	384

58

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables show an aging of the balance of loans held for investment, by class as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	27,317	$	10	$	54	$	64	$	27,381
Commercial mortgage	14,435		18		15		33		14,468
Construction	2,040		—		—		—		2,040
Total commercial portfolio	43,792		28		69		97		43,889
Residential mortgage	31,012		110		40		150		31,162
Home equity and other consumer loans	3,347		21		15		36		3,383
Total consumer portfolio	34,359		131		55		186		34,545
Total loans held for investment	$	78,151	$	159	$	124	$	283	$	78,434

	December 31, 2016
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	27,085	$	54	$	59	$	113	$	27,198
Commercial mortgage	14,571		37		17		54		14,625
Construction	2,283		—		—		—		2,283
Total commercial portfolio	43,939		91		76		167		44,106
Residential mortgage	29,770		110		42		152		29,922
Home equity and other consumer loans	3,479		27		17		44		3,523
Total consumer portfolio	33,249		137		59		196		33,445
Total loans held for investment	$	77,188	$	228	$	135	$	363	$	77,551

Loans 90 days or more past due and still accruing totaled $24 million at March 31, 2017 and $23 million at December 31, 2016.

Credit Quality Indicators

Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. Loans within the commercial portfolio segment are classified as either pass or criticized. Criticized credits are those that have regulatory risk ratings of special mention, substandard or doubtful; classified credits are those that have regulatory risk ratings of substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions.

59

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings. The amounts presented reflect unpaid principal balances less charge-offs.

	March 31, 2017
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,708	$	635	$	1,007	$	27,350
Commercial mortgage	14,119		93		237		14,449
Construction	1,862		118		61		2,041
Total commercial portfolio	$	41,689	$	846	$	1,305	$	43,840

	December 31, 2016
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,028	$	860	$	1,097	$	26,985
Commercial mortgage	14,152		161		188		14,501
Construction	2,162		121		—		2,283
Total commercial portfolio	$	41,342	$	1,142	$	1,285	$	43,769

The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $10 million and $11 million of loans covered by FDIC loss share agreements, at March 31, 2017 and December 31, 2016, respectively:

	March 31, 2017
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	31,052	$	110	$	31,162
Home equity and other consumer loans	3,357		26		3,383
Total consumer portfolio	$	34,409	$	136	$	34,545

	December 31, 2016
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	29,751	$	171	$	29,922
Home equity and other consumer loans	3,494		29		3,523
Total consumer portfolio	$	33,245	$	200	$	33,445

The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by FICO and refreshed LTV ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index data available for the property location. 

60

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at March 31, 2017 and December 31, 2016. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	March 31, 2017
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	24,680		$	5,746		$	436		$	30,862
Home equity and other consumer loans	2,248			937			139			3,324
Total consumer portfolio	$	26,928		$	6,683		$	575		$	34,186
Percentage of total	79		%	19		%	2		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2016
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	23,598		$	5,597		$	444		$	29,639
Home equity and other consumer loans	2,372			977			111			3,460
Total consumer portfolio	$	25,970		$	6,574		$	555		$	33,099
Percentage of total	78		%	20		%	2		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

61

Note 3—Loans and Allowance for Loan Losses (Continued)

	March 31, 2017
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	29,721		$	1,090		$	14		$	37		$	30,862
Home equity loans	2,103			219			37			39			2,398
Total consumer portfolio	31,824			1,309			51			76			33,260
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

	December 31, 2016
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	28,547		$	1,030		$	16		$	46		$	29,639
Home equity loans	2,160			206			41			43			2,450
Total consumer portfolio	$	30,707		$	1,236		$	57		$	89		$	32,089
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

Troubled Debt Restructurings

The following table provides a summary of the Company’s recorded investment in TDRs as of March 31, 2017 and December 31, 2016. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $48 million and $59 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of March 31, 2017 and December 31, 2016, respectively.

(Dollars in millions)	March 31, 2017		December 31, 2016
Commercial and industrial	$	304	$	321
Commercial mortgage	9		9
Construction	61		—
Total commercial portfolio	374		330
Residential mortgage	234		239
Home equity and other consumer loans	29		30
Total consumer portfolio	263		269
Total restructured loans	$	637	$	599

For the first quarter of 2017, TDR modifications in the commercial portfolio segment were primarily composed of interest rate changes, maturity extensions, covenant waivers, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, primarily all of the modifications were composed of interest rate reductions and maturity extensions. Charge-offs related to TDR modifications for the three months ended March 31, 2017 and March 31, 2016 were de minimis. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs is measured on an individual loan basis or in pools with similar risk characteristics.

62

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three months ended March 31, 2017 and 2016:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	78	$	78
Commercial mortgage	1		1
Construction	61		61
Total commercial portfolio	140		140
Residential mortgage	4		4
Total consumer portfolio	4		4
Total	$	144	$	144

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	50	$	50
Commercial mortgage	5		5
Total commercial portfolio	55		55
Residential mortgage	4		4
Home equity and other consumer loans	1		1
Total consumer portfolio	5		5
Total	$	60	$	60

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

63

Note 3—Loans and Allowance for Loan Losses (Continued)

The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three months ended March 31, 2017 and 2016, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

(Dollars in millions)	For the Three Months Ended March 31, 2017
Commercial and industrial	$	2
Commercial mortgage	1
Total commercial portfolio	3
Residential mortgage	1
Total consumer portfolio	1
Total	$	4

(Dollars in millions)	For the Three Months Ended March 31, 2016
Commercial and industrial	$	1
Total commercial portfolio	1
Residential mortgage	2
Total consumer portfolio	2
Total	$	3

For loans in the consumer portfolio in which impairment is measured using the present value of expected future cash flows discounted at the loan’s effective interest rate, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses.

Loan Impairment

Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, and commercial mortgage loan portfolios and loans modified in a TDR. The Company records an impairment allowance when the value of an impaired loan is less than the recorded investment in the loan.

The following tables show information about impaired loans by class as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	421	$	94	$	515	$	116	$	514	$	125
Commercial mortgage	54		8		62		1		54		9
Construction	—		61		61		—		—		61
Total commercial portfolio	475		163		638		117		568		195
Residential mortgage	243		72		315		20		257		85
Home equity and other consumer loans	38		19		57		—		40		29
Total consumer portfolio	281		91		372		20		297		114
Total	$	756	$	254	$	1,010	$	137	$	865	$	309

64

Note 3—Loans and Allowance for Loan Losses (Continued)

	December 31, 2016
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	505	$	36	$	541	$	150	$	672	$	54
Commercial mortgage	86		9		95		1		8		9
Total commercial portfolio	591		45		636		151		680		63
Residential mortgage	250		75		325		17		295		89
Home equity and other consumer loans	41		20		61		—		11		30
Total consumer portfolio	291		95		386		17		306		119
Total	$	882	$	140	$	1,022	$	168	$	986	$	182

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	For the Three Months Ended March 31,
	2017				2016
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	491	$	4	$	624	$	2
Commercial mortgage	18		—		18		—
Construction	10		—		—		—
Total commercial portfolio	519		4		642		2
Residential mortgage	237		2		273		2
Home equity and other consumer loans	29		—		31		1
Total consumer portfolio	266		2		304		3
Total	$	785	$	6	$	946	$	5

The following table presents loan transfers from held to investment to held for sale and proceeds from

sales of loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	For the Three Months Ended March 31,
	2017					2016
(Dollars in millions)	Transfers of loans from held for investment to held for sale, net			Proceeds from sale		Transfers of loans from held for investment to held for sale, net			Proceeds from sale
Commercial portfolio	$	234		$	347	$	(81	)	$	49
Consumer portfolio	(4		)	—		—			—
Total	$	230		$	347	$	(81	)	$	49

65

Note 4—Variable Interest Entities

In the normal course of business, the Company has certain financial interests in entities which have been determined to be VIEs. Generally, a VIE is a corporation, partnership, trust or other legal structure where the equity investors do not have substantive voting rights, an obligation to absorb the entity’s losses or the right to receive the entity’s returns, or the ability to direct the significant activities of the entity. The following discusses the Company’s consolidated and unconsolidated VIEs.

Consolidated VIEs

The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016:

	March 31, 2017
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	106	$	106	$	—	$	—
Leasing investments	622		173		795		54		54
Total consolidated VIEs	$	622	$	279	$	901	$	54	$	54

	December 31, 2016
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	112	$	112	$	—	$	—
Leasing investments	641		174		815		54		54
Total consolidated VIEs	$	641	$	286	$	927	$	54	$	54

LIHC Investments

The Company sponsors, manages and syndicates two LIHC investment fund structures. These investments are designed to generate a return primarily through the realization of U.S. federal tax credits and deductions. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct activities that most significantly impact the funds’ economic performances and also has the obligation to absorb losses of the funds that could potentially be significant to the funds. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company’s creditors do not have any recourse to the assets of the consolidated LIHC investments.

Leasing Investments

The Company has leasing investments primarily in the wind energy, rail and coal industries. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct the activities of these entities that significantly impact the entities’ economic performances. The Company also has the right to receive potentially significant benefits or the obligation to absorb potentially significant losses of these investments.

66

Note 4—Variable Interest Entities (Continued)

Unconsolidated VIEs

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at March 31, 2017 and December 31, 2016. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During the three months endedMarch 31, 2017 and March 31, 2016, the Company had noncash increases in unfunded commitments on LIHC investments of $19 million and $37 million, respectively, included within other liabilities.

	March 31, 2017
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	25	$	199	$	1,148	$	1,372	$	388	$	388	$	1,372
Leasing investments	1		12		28		1,662		1,703		66		66		1,723
Other investments	—		—		24		25		49		—		—		76
Total unconsolidated VIEs	$	1	$	37	$	251	$	2,835	$	3,124	$	454	$	454	$	3,171

			December 31, 2016
			Unconsolidated Assets								Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	25	$	168	$	1,164	$	1,357	$	381	$	381	$	1,357
Leasing investments	1		12		47		1,751		1,811		66		66		1,833
Other investments	—		—		24		26		50		—		—		81
Total unconsolidated VIEs	$	1	$	37	$	239	$	2,941	$	3,218	$	447	$	447	$	3,271

LIHC Investments

The Company makes investments in partnerships and funds formed by third parties. The primary purpose of the partnerships and funds is to invest in low-income housing units and distribute tax credits and tax benefits associated with the underlying properties to investors. The Company is a limited partner investor and is allocated tax credits and deductions, but has no voting or other rights to direct the activities of the funds or partnerships, and therefore is not considered the primary beneficiary and does not consolidate these investments.

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the three months endedMarch 31, 2017 and 2016:

	For the Three Months Ended
	March 31, 2017		March 31, 2016
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	2	$	2
Amortization of LIHC investments included in income tax expense	33		30
Tax credits and other tax benefits from LIHC investments included in income tax expense	45		45

67

Note 4—Variable Interest Entities (Continued)

Leasing Investments

The unconsolidated VIEs related to leasing investments are primarily renewable energy investments. Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors. The LLCs are created to operate and manage wind, solar, hydroelectric and cogeneration power plant projects. Power generated by the projects is sold to third parties through long-term purchase power agreements. As a limited investor member, the Company is allocated production tax credits and taxable income or losses associated with the projects. The Company has no voting or other rights to direct the significant activities of the LLCs, and therefore is not considered the primary beneficiary and does not consolidate these investments.

Other Investments

The Company has other investments in structures formed by third parties. The Company has no voting or other rights to direct the activities of the investments that would most significantly impact the entities’ performance, and therefore is not considered the primary beneficiary and does not consolidate these investments.

Note 5—Securities Financing Arrangements

The Company enters into derivative transactions, securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions. The Company executes these transactions to facilitate customer match-book activity, cover short positions and to fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty.

The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features.

The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016:

	March 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,502	$	787	$	715	$	44	$	2	$	669
Securities borrowed or purchased under resale agreements	31,147		11,155		19,992		19,896		—		96
Total	$	32,649	$	11,942	$	20,707	$	19,940	$	2	$	765
Financial Liabilities:
Derivative liabilities	$	1,533	$	968	$	565	$	170	$	—	$	395
Securities loaned or sold under repurchase agreements	36,235		11,156		25,079		24,470		—		609
Total	$	37,768	$	12,124	$	25,644	$	24,640	$	—	$	1,004

68

Note 5—Securities Financing Arrangements (Continued)

	December 31, 2016
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,626	$	770	$	856	$	20	$	—	$	836
Securities borrowed or purchased under resale agreements	31,386		11,639		19,747		19,657		—		90
Total	$	33,012	$	12,409	$	20,603	$	19,677	$	—	$	926
Financial Liabilities:
Derivative liabilities	$	1,684	$	1,047	$	637	$	176	$	5	$	456
Securities loaned or sold under repurchase agreements	36,255		11,639		24,616		23,812		—		804
Total	$	37,939	$	12,686	$	25,253	$	23,988	$	5	$	1,260

The following tables present the gross obligations for securities sold under agreements to repurchase, and securities loaned by remaining contractual maturity and class of collateral pledged as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	10,925	$	1,886	$	677	$	96	$	13,584
U.S. agency securities	30		3		—		—		33
Other sovereign government obligations	7		20		1		—		28
Money market securities	14		24		34		—		72
Asset-backed securities	1		1		28		—		30
Mortgage-backed securities	9,384		3,701		5,372		—		18,457
Corporate bonds	379		824		1,031		—		2,234
Municipal securities	157		54		143		—		354
Equities	362		49		164		—		575
Total	$	21,259	$	6,562	$	7,450	$	96	$	35,367
Securities loaned:
Equities	718		51		99		—		868
Total	$	718	$	51	$	99	$	—	$	868

69

Note 5—Securities Financing Arrangements (Continued)

	December 31, 2016
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	11,419	$	1,523	$	712	$	316	$	13,970
U.S. agency securities	42		30		—		—		72
Other sovereign government obligations	—		—		16		—		16
Asset-backed securities	20		15		66		—		101
Mortgage-backed securities	8,792		4,450		4,750		—		17,992
Corporate bonds	405		800		909		—		2,114
Municipal securities	74		65		299		—		438
Equities	452		275		164		—		891
Total	$	21,204	$	7,158	$	6,916	$	316	$	35,594
Securities loaned:
Corporate bonds	$	8	$	—	$	—	$	—	$	8
Equities	562		—		91		—		653
Total	$	570	$	—	$	91	$	—	$	661

The Company enters into reverse repurchase agreements, repurchase agreements and securities borrow and loan transactions. Under these agreements and transactions, the Company either receives or provides collateral. The Company receives collateral in the form of securities in connection with reverse repurchase agreements and securities borrowed transactions. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. For additional information related to securities pledged and received as collateral, refer to Note 2 to these consolidated financial statements.

70

Note 6—Commercial Paper and Other Short-Term Borrowings

The following table is a summary of the Company's commercial paper and other short-term borrowings:

(Dollars in millions)	March 31, 2017		December 31, 2016
Debt issued by MUB
Federal funds purchased, with weighted average interest rates of 0.72% and 0.50% at March 31, 2017 and December 31, 2016, respectively	$	40	$	26
Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively	651		263
Federal Home Loan Bank advances, with a weighted average interest rate of 0.62% and 0.59% at March 31, 2017 and December 31, 2016, respectively	1,600		700
Total debt issued by MUB	2,291		989
Debt issued by other MUAH subsidiaries
Short-term debt due to BTMU, with weighted average interest rates of 1.47% and 0.49% at March 31, 2017 and December 31, 2016, respectively	425		679
Short-term debt due to affiliates, with weighted average interest rates of (0.07)% and (0.04)% at March 31, 2017 and December 31, 2016, respectively	771		692
Total debt issued by other MUAH subsidiaries	1,196		1,371
Total commercial paper and other short-term borrowings	$	3,487	$	2,360

Short-term debt due to BTMU consists of both secured and unsecured fixed and floating rate borrowings.

MUSA maintains an uncommitted, unsecured lending facility with Mitsubishi UFJ Securities Holdings Co., Ltd. under which it may borrow up to $1.4 billion. Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or US Dollars. Japanese Yen denominated borrowings include an extension option allowing MUSA to extend the maturity of an individual draw by 100 days at any time prior to its original, stated maturity. At March 31, 2017, MUSA had ¥86 billion ($771 million USD equivalent) drawn under this facility.

71

Note 7—Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt:

(Dollars in millions)	March 31, 2017		December 31, 2016
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016	$	250	$	250
Fixed rate 1.625% notes due February 2018	449		449
Fixed rate 2.25% notes due February 2020	997		997
Fixed rate 3.50% notes due June 2022	397		397
Fixed rate 3.00% notes due February 2025	496		496
Senior debt due to BTMU:
Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017	3,500		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017	21		—
Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016	545		545
Subordinated debt due to BTMU:
Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016	300		300
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016	36		36
Total debt issued by MUAH	6,991		3,470
Debt issued by MUB
Senior debt:
Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016	250		250
Fixed rate 2.125% notes due June 2017	500		500
Fixed rate 2.625% notes due September 2018	999		999
Fixed rate 2.250% notes due May 2019	500		500
Senior debt due to BTMU:
Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016	—		1,000
Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016	—		1,500
Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016	—		1,000
Subordinated debt due to BTMU:
Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016	750		750
Other	61		58
Total debt issued by MUB	3,060		6,557

72

Note 7—Long Term Debt (Continued)

Debt issued by other MUAH subsidiaries
Senior Debt due to BTMU:
Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016	250		250
Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016	288		384
Subordinated Debt due to Affiliate:
Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016	185		185
Nonrecourse Debt due to BTMU:
Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016	127		127
Nonrecourse Debt:
Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016	38		39
Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016	394		398
Total debt issued by other MUAH subsidiaries	1,282		1,383
Total long-term debt	$	11,333	$	11,410

MUAH Senior Debt due to BTMU

During the three months ended March 31, 2017, MUAH borrowed $3.5 billion from BTMU in the form of a senior loan. MUAH may prepay the loan prior to the stated maturity date in whole or in part and in an amount of not less than $500,000. BTMU may accelerate the payment of the loan, in the case of certain events of default. The proceeds of the BTMU Loan have funded loans to MUAH’s subsidiaries. Simultaneously with the funding of the BTMU Loan on March 31, 2017, MUFG Union Bank, N.A., a wholly-owned subsidiary of MUAH, prepaid three loans from BTMU totaling $3.5 billion.

73

Note 8—Fair Value Measurement and Fair Value of Financial Instruments

Valuation Methodologies

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. The Company has an established and documented process for determining fair value for financial assets and liabilities that are measured at fair value on either a recurring or nonrecurring basis. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as yield curves, foreign exchange rates, credit spreads, commodity prices and implied volatilities. Valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit quality and that consider the Company's own creditworthiness in determining the fair value of its trading assets and liabilities. For further information related to the valuation methodologies used for certain financial assets and financial liabilities measured at fair value, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

Fair Value Hierarchy

In determining fair value, the Company maximizes the use of observable market inputs and minimizes the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect the Company’s estimate about market data. Based on the observability of the significant inputs used, the Company classifies its fair value measurements in accordance with the three-level hierarchy as defined by GAAP. This hierarchy is based on the quality, observability and reliability of the information used to determine fair value. For further information related to the fair value hierarchy, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

Valuation Processes

The Company has established a valuation committee to oversee its valuation framework for measuring fair value and to establish valuation policies and procedures. The valuation committee’s responsibilities include reviewing fair value measurements and categorizations within the fair value hierarchy and monitoring the use of pricing sources, mark-to-model valuations, dealer quotes and other valuation processes. The valuation committee reports to the Company’s Disclosure & Accounting Committee and meets at least quarterly.

Independent price verification is performed periodically by the Company to test the market data and valuations of substantially all instruments measured at fair value on a recurring basis. As part of its independent price verification procedures, the Company compares pricing sources, tests data variances within certain thresholds and performs variance analysis, utilizing third party valuations and both internal and external models. Results are formally reported on a quarterly basis to the valuation committee. For further information related to valuation processes, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

74

Note 8—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

Fair Value Measurements on a Recurring Basis

The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, by major category and by valuation hierarchy level:

	March 31, 2017
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury securities	$	—		$	1,902		$	—		$	—		$	1,902
U.S. government-sponsored agency securities	—			121			—			—			121
State and municipal securities	—			8			—			—			8
Commercial paper	—			75			—			—			75
Other sovereign government obligations	—			31			—			—			31
Corporate bonds	—			1,273			—			—			1,273
Asset-backed securities	—			183			—			—			183
Mortgage-backed securities	—			4,582			—			—			4,582
Equities	42			—			—			—			42
Interest rate derivative contracts	4			984			2			(361		)	629
Commodity derivative contracts	—			132			1			(124		)	9
Foreign exchange derivative contracts	1			185			1			(119		)	68
Equity derivative contracts	—			—			168			(165		)	3
Total trading account assets	47			9,476			172			(769		)	8,926
Securities available for sale:
U.S. Treasury	—			2,813			—			—			2,813
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			7,378			—			—			7,378
Privately issued	—			426			—			—			426
Privately issued - commercial mortgage-backed securities	—			663			—			—			663
Collateralized loan obligations	—			1,997			—			—			1,997
Other	—			7			—			—			7
Other debt securities:
Direct bank purchase bonds	—			—			1,543			—			1,543
Other	—			67			26			—			93
Equity securities	5			—			—			—			5
Total securities available for sale	5			13,351			1,569			—			14,925
Other assets:
Mortgage servicing rights	—			—			34			—			34
Interest rate hedging contracts	—			7			—			(5		)	2
Other derivative contracts	—			16			1			(13		)	4
Total other assets	—			23			35			(18		)	40
Total assets	$	52		$	22,850		$	1,776		$	(787	)	$	23,891
Percentage of total	—		%	96		%	7		%	(3		)%	100		%
Percentage of total Company assets	—		%	15		%	1		%	(1		)%	15		%
Liabilities
Trading account liabilities:
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,113		$	—		$	—		$	2,113
State and municipal	—			10			—			—			10
Other sovereign government obligations	—			35			—			—			35
Corporate bonds	—			474			—			—			474
Equities	42			—			—			—			42
Trading derivatives:
Interest rate derivative contracts	3			922			—			(665		)	260
Commodity derivative contracts	—			104			—			(55		)	49
Foreign exchange derivative contracts	1			99			1			(18		)	83
Equity derivative contracts	—			—			167			—			167
Total trading account liabilities	46			3,757			168			(738		)	3,233
Other liabilities:
FDIC clawback liability	—			—			113			—			113
Interest rate hedging contracts	—			230			—			(230		)	—
Other derivative contracts	—			—			6			—			6
Total other liabilities	—			230			119			(230		)	119
Total liabilities	$	46		$	3,987		$	287		$	(968	)	$	3,352
Percentage of total	1		%	119		%	9		%	(29		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	(1		)%	2		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

75

Note 8—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

	December 31, 2016
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury securities	$	—		$	1,730		$	—		$	—		$	1,730
U.S. government-sponsored agency securities	—			73			—			—			73
State and municipal securities	—			18			—			—			18
Commercial paper	—			1			—			—			1
Other sovereign government obligations	—			16			—			—			16
Corporate bonds	—			841			—			—			841
Asset-backed securities	—			106			—			—			106
Mortgage-backed securities	—			5,221			—			—			5,221
Equities	85			—			—			—			85
Interest rate derivative contracts	7			1,065			2			(343		)	731
Commodity derivative contracts	—			144			1			(106		)	39
Foreign exchange derivative contracts	1			215			1			(138		)	79
Equity derivative contracts	1			—			164			(163		)	2
Total trading account assets	94			9,430			168			(750		)	8,942
Securities available for sale:
U.S. Treasury	—			2,505			—			—			2,505
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			6,695			—			—			6,695
Privately issued	—			327			—			—			327
Privately issued - commercial mortgage-backed securities	—			664			—			—			664
Collateralized loan obligations	—			2,218			—			—			2,218
Other	—			7			—			—			7
Other debt securities:
Direct bank purchase bonds	—			—			1,613			—			1,613
Other	—			82			25			—			107
Equity securities	5			—			—			—			5
Total securities available for sale	5			12,498			1,638			—			14,141
Other assets:
Mortgage servicing rights	—			—			23			—			23
Interest rate hedging contracts	—			22			—			(20		)	2
Other derivative contracts	—			2			1			—			3
Total other assets	—			24			24			(20		)	28
Total assets	$	99		$	21,952		$	1,830		$	(770	)	$	23,111
Percentage of total	—		%	95		%	8		%	(3		)%	100		%
Percentage of total Company assets	—		%	15		%	1		%	(1		)%	15		%
Liabilities
Trading account liabilities:
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	1,973		$	—		$	—		$	1,973
Other sovereign government obligations	—			11			—			—			11
Corporate bonds	—			298			—			—			298
Equities	47			—			—			—			47
Trading derivatives:
Interest rate derivative contracts	1			987			—			(718		)	270
Commodity derivative contracts	—			111			1			(68		)	44
Foreign exchange derivative contracts	1			129			1			(33		)	98
Equity derivative contracts	—			—			164			—			164
Total trading account liabilities	49			3,509			166			(819		)	2,905
Other liabilities:
FDIC clawback liability	—			—			115			—			115
Interest rate hedging contracts	—			199			—			(199		)	—
Other derivative contracts	—			84			6			(29		)	61
Total other liabilities	—			283			121			(228		)	176
Total liabilities	$	49		$	3,792		$	287		$	(1,047	)	$	3,081
Percentage of total	2		%	123		%	9		%	(34		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	(1		)%	2		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

76

Note 8—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 and 2016. Level 3 available for sale securities at March 31, 2017 and 2016 primarily consist of direct bank purchase bonds. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period.

	For the Three Months Ended
	March 31, 2017														March 31, 2016
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities			Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	168		$	1,638		$	24	$	(166	)	$	(121	)	$	228		$	1,603		$	1	$	(223	)	$	(114	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	30			—			—		(28		)	2			(18		)	—			1		17			(2		)
Included in other comprehensive income	—			3			—		—			—			—			(2		)	—		—			—
Purchases/additions	—			1			11		—			—			—			78			—		—			—
Sales	—			—			—		—			—			—			—			—		—			—
Settlements	(26		)	(73		)	—		26			—			(21		)	(66		)	—		19			—
Transfers in (out) of level 3	—			—			—		—			—			—			—			13		—			—
Asset (liability) balance, end of period	$	172		$	1,569		$	35	$	(168	)	$	(119	)	$	189		$	1,613		$	15	$	(187	)	$	(116	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	30		$	—		$	—	$	(28	)	$	2		$	(18	)	$	—		$	1	$	17		$	(2	)

The following table presents information about significant unobservable inputs related to the Company’s significant Level 3 assets and liabilities at March 31, 2017.

	March 31, 2017
(Dollars in millions)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input(s)	Range of Inputs		Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,543	Return on equity	Market-required return on capital	8.0 - 10.0	%	9.7	%
				Probability of default	0.0 - 25.0	%	0.3	%
				Loss severity	10.0 - 60.0	%	28.5	%

The direct bank purchase bonds use a return on equity valuation technique. This technique uses significant unobservable inputs such as market-required return on capital, probability of default and loss severity. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement.

77

Note 8—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

Fair Value Measurement on a Nonrecurring Basis

Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2017 and 2016 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment.

	March 31, 2017								Gain (Loss) For the Three Months Ended March 31, 2017
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	139	$	—	$	—	$	139	$	(16	)
Other assets:
Software	—		—		—		—		(3		)
Loans held for sale	15		—		—		15		(2		)
Renewable energy investment	9		—		—		9		2
Total	$	163	$	—	$	—	$	163	$	(19	)

	March 31, 2016								Gain (Loss) For the Three Months Ended March 31, 2016
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	375	$	—	$	—	$	375	$	(127	)
Premises and equipment	—		—		—		—		(4		)
Other assets:
Loans held for sale	5		—		—		5		(3		)
OREO	2		—		—		2		(1		)
Private equity investments	10		—		—		10		(12		)
Intangible assets	—		—		—		—		(1		)
Total	$	392	$	—	$	—	$	392	$	(148	)

Loans include individually impaired loans that are measured based on the fair value of the underlying collateral or the fair value of the loan. The fair value of impaired loans was determined based on appraised values of the underlying collateral or market pricing for the loan, adjusted for management judgment, as of the measurement date. The fair value of OREO was primarily based on independent appraisals. The fair value of private equity investments and renewable energy investments was determined using a discounted cash flow analysis and market pricing, adjusted for management judgment, as of the measurement date. The fair value of software, premises and equipment, and intangible assets was determined using appraised values and market pricing, adjusted for management judgment, as of the measurement date.

78

Note 8—Fair Value Measurement and Fair Value of Financial Instruments (Continued)

Fair Value of Financial Instruments Disclosures

The tables below present the carrying amount and estimated fair value of certain financial instruments, classified by valuation hierarchy level as of March 31, 2017 and as of December 31, 2016:

	March 31, 2017
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	4,827	$	4,827	$	4,827	$	—	$	—
Securities borrowed or purchased under resale agreements	19,992		19,992		—		19,992		—
Securities held to maturity	10,374		10,348		—		10,348		—
Loans held for investment (1)	76,105		77,234		—		—		77,234
Liabilities
Deposits	$	86,533	$	86,519	$	—	$	86,519	$	—
Commercial paper and other short-term borrowings	3,487		3,487		—		3,487		—
Securities loaned or sold under repurchase agreements	25,079		25,079		—		25,079		—
Long-term debt	11,333		11,348		—		11,348		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	202	$	202	$	—	$	—	$	202

(1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

	December 31, 2016
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	5,753	$	5,753	$	5,753	$	—	$	—
Securities borrowed or purchased under resale agreements	19,747		19,747		—		19,747		—
Securities held to maturity	10,337		10,316		—		10,316		—
Loans held for investment (1)	75,112		76,257		—		—		76,257
Liabilities
Deposits	$	86,947	$	86,930	$	—	$	86,930	$	—
Commercial paper and other short-term borrowings	2,360		2,360		—		2,360		—
Securities loaned or sold under repurchase agreements	24,616		24,616		—		24,616		—
Long-term debt	11,410		11,411		—		11,411		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	221	$	221	$	—	$	—	$	221

(1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

For further information on methodologies for approximating fair values, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

79

Note 9—Derivative Instruments and Other Financial Instruments Used For Hedging

The Company enters into certain derivative and other financial instruments primarily to assist customers with their risk management objectives and to manage the Company’s exposure to interest rate risk. When entering into derivatives on behalf of customers, the Company generally acts as a financial intermediary by offsetting a significant portion of the market risk for these derivatives with third parties. The Company may also enter into derivatives for other risk management purposes. All derivative instruments are recognized as assets or liabilities on the consolidated balance sheets at fair value.

Counterparty credit risk is inherent in derivative instruments. In order to reduce its exposure to counterparty credit risk, the Company utilizes credit approvals, limits, monitoring procedures and master netting and credit support annex agreements. Additionally, the Company considers counterparty credit quality and the creditworthiness of the Company in estimating the fair value of derivative instruments.

The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of March 31, 2017 and December 31, 2016, respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively.

	March 31, 2017						December 31, 2016
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
(Dollars in millions)	Amount		Derivatives		Derivatives		Amount		Derivatives		Derivatives
Cash flow hedges
Interest rate contracts	$	13,244	$	6	$	230	$	15,459	$	19	$	199
Fair value hedges
Interest rate contracts	500		1		—		500		3		—
Not designated as hedging instruments:
Trading
Interest rate contracts	145,724		990		925		149,229		1,074		988
Commodity contracts	2,462		133		104		2,825		145		112
Foreign exchange contracts	5,756		187		101		5,981		217		131
Equity contracts	1,995		168		167		2,385		165		164
Other contracts	21		—		—		4		—		—
Total Trading	155,958		1,478		1,297		160,424		1,601		1,395
Other risk management	1,003		17		6		1,045		3		90
Total derivative instruments	$	170,705	$	1,502	$	1,533	$	177,428	$	1,626	$	1,684

We recognized net gains of $4 million and net losses of $2 million on other risk management derivatives for the three months ended March 31, 2017 and 2016, respectively, which are included in other noninterest income.

Derivatives Designated and Qualifying as Hedging Instruments

The Company uses interest rate derivatives to manage the financial impact on the Company from changes in market interest rates. These instruments are used to manage interest rate risk relating to specified groups of assets and liabilities, primarily LIBOR-based commercial loans and debt issuances. Derivatives that qualify for hedge accounting are designated as either fair value or cash flow hedges.

80

Note 9—Derivative Instruments and Other Financial Instruments Used For Hedging (Continued)

Cash Flow Hedges

The Company uses interest rate swaps to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans, and to a lesser extent, to hedge interest rate risk on rollover debt. 

The Company used interest rate swaps with a notional amount of $13.0 billion at March 31, 2017 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans. To the extent effective, payments received or paid under the swap contract offset fluctuations in interest income on loans caused by changes in the relevant LIBOR index. The Company used interest rate swaps with a notional amount of $294 million at March 31, 2017 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed short-term borrowings. At March 31, 2017, the weighted average remaining life of the active cash flow hedges was 3.84 years.

For cash flow hedges, the effective portion of the gain or loss on the hedging instruments is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged cash flows are recognized in net interest income. Gains and losses representing hedge ineffectiveness are recognized in noninterest expense in the period in which they arise. At March 31, 2017, the Company expects to reclassify approximately $47 million of income from AOCI to net interest income during the twelve months ending March 31, 2018. This amount could differ from amounts actually realized due to changes in interest rates, hedge terminations and the addition of other hedges subsequent to March 31, 2017.

The following tables present the amount and location of the net gains and losses recorded in the Company’s consolidated statements of income and changes in stockholder’s equity for derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016:

	Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion)						Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					(Gain) Loss Recognized in Income on Derivative Instruments (Ineffective Portion)
	For the Three Months Ended March 31,						For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Dollars in millions)	2017			2016		Location	2017		2016		Location	2017		2016
Derivatives in cash flow hedging relationships
						Interest income	$	29	$	42
Interest rate contracts	$	(19	)	$	261	Interest expense	—		—		Noninterest expense	$	2	$	1
Total	$	(19	)	$	261		$	29	$	42		$	2	$	1

Fair Value Hedges

The Company engages in an interest rate hedging strategy in which one or more interest rate swaps are associated with a specified interest bearing liability, in order to convert the liability from a fixed rate to a floating rate instrument. This strategy mitigates the changes in fair value of the hedged liability caused by changes in the designated benchmark interest rate, U.S. dollar LIBOR.

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. The change in the fair value of the hedged item and the hedging instrument, to the extent completely effective, offsets with no impact on earnings.

81

Note 9—Derivative Instruments and Other Financial Instruments Used For Hedging (Continued)

The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the three months ended March 31, 2017 and 2016, respectively:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Derivative			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt	$	(2	)	$	1	$	(1	)
Total	$	(2	)	$	1	$	(1	)

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Derivative		Hedged Item			Hedge Ineffectiveness
Interest rate risk on long-term debt	$	7	$	(7	)	$	—
Total	$	7	$	(7	)	$	—

Derivatives Not Designated as Hedging Instruments

Trading Derivatives

Derivative instruments classified as trading are primarily derivatives entered into as an accommodation for customers. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities. The majority of the Company's derivative transactions for customers were essentially offset by contracts with third parties that reduce or eliminate market risk exposures.

The Company offers market-linked CDs, which allow the customer to earn the higher of either a minimum fixed rate of interest or a return tied to either equity, commodity, or currency indices. The Company offsets its exposure to the embedded derivative contained in market-linked CDs with a matched over-the-counter option. Both the embedded derivative (when bifurcated) and hedge options are recorded at fair value with the realized and unrealized changes in fair value recorded in noninterest income within trading account activities.

The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the three months ended March 31, 2017 and 2016:

	Gain or (Loss) Recognized in Income on Derivative Instruments
	For the Three Months Ended
(Dollars in millions)	March 31, 2017			March 31, 2016
Trading derivatives:
Interest rate contracts	$	(22	)	$	(9	)
Foreign exchange contracts	10			9
Total	$	(12	)	$	—

Offsetting Assets and Liabilities

The Company primarily enters into derivative contracts and repurchase agreements with counterparties utilizing a standard International Swaps and Derivatives Association Master Agreements and Master Repurchase Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. For additional information related to offsetting of financial assets and liabilities, refer to Note 5 to these consolidated financial statements.

82

Note 10—Accumulated Other Comprehensive Income

The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component for the three months ended March 31, 2017 and 2016:

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Three Months Ended March 31, 2017
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(19	)	$	7		$	(12	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(29		)	11			(18		)
Net change	(48		)	18			(30		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	56			(23		)	33
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(2		)	1			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	5			(2		)	3
Net change	59			(24		)	35
Foreign currency translation adjustment	1			—			1
Pension and other benefits:
Amortization of prior service credit (1)	(12		)	5			(7		)
Recognized net actuarial (gain) loss(1)	23			(9		)	14
Net change	11			(4		)	7
Net change in AOCI	$	23		$	(10	)	$	13

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Three Months Ended March 31, 2016
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	261		$	(103	)	$	158
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(42		)	16			(26		)
Net change	219			(87		)	132
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	157			(62		)	95
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(13		)	5			(8		)
Amortization of net unrealized (gains) losses on held to maturity securities	5			(2		)	3
Net change	149			(59		)	90
Foreign currency translation adjustment	7			(3		)	4
Pension and other benefits:
Amortization of prior service credit (1)	(6		)	3			(3		)
Recognized net actuarial (gain) loss(1)	22			(9		)	13
Net change	16			(6		)	10
Other	(2		)	—			(2		)
Net change in AOCI	$	389		$	(155	)	$	234

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.

83

Note 10—Accumulated Other Comprehensive Income (Continued)

The following tables present the change in accumulated other comprehensive loss balances:

For the Three Months Ended March 31, 2016 and 2017:
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Securities			Foreign Currency Translation Adjustment			Pension and Other Postretirement Benefits Adjustment			Other			Accumulated Other Comprehensive Loss
(Dollars in millions)
Balance December 31, 2015	$	38		$	(152	)	$	(24	)	$	(612	)	$	—		$	(750	)
Other comprehensive income (loss) before reclassifications	158			98			4			—			—			260
Amounts reclassified from AOCI	(26		)	(8		)	—			10			(2		)	(26		)
Balance, March 31, 2016	$	170		$	(62	)	$	(20	)	$	(602	)	$	(2	)	$	(516	)
Balance, December 31, 2016	$	(77	)	$	(208	)	$	(22	)	$	(589	)	$	—		$	(896	)
Other comprehensive income (loss) before reclassifications	(12		)	36			1			—			—			25
Amounts reclassified from AOCI	(18		)	(1		)	—			7			—			(12		)
Balance, March 31, 2017	$	(107	)	$	(173	)	$	(21	)	$	(582	)	$	—		$	(883	)

Note 11—Employee Pension and Other Postretirement Benefits

The following table summarizes the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016.

	Pension Benefits						Other Postretirement Benefits						Superannuation, SERP and ESBP
	For the Three Months Ended   March 31,						For the Three Months Ended   March 31,						For the Three Months Ended   March 31,
(Dollars in millions)	2017			2016			2017			2016			2017		2016
Components of net periodic benefit cost:
Service cost	$	19		$	23		$	2		$	2		$	—	$	1
Interest cost	25			26			2			3			1		—
Expected return on plan assets	(64		)	(60		)	(5		)	(5		)	—		—
Amortization of prior service credit	(7		)	(4		)	(5		)	(2		)	—		—
Recognized net actuarial loss	19			19			3			2			1		1
Total net periodic benefit cost	$	(8	)	$	4		$	(3	)	$	—		$	2	$	2

84

Note 12—Commitments, Contingencies and Guarantees

The following table summarizes the Company's commitments:

(Dollars in millions)	March 31, 2017
Commitments to extend credit	$	30,976
Issued standby and commercial letters of credit	5,770
Commitments to enter into forward-starting resale agreements	502
Other commitments	1,605

Commitments to extend credit are legally binding agreements to lend to a customer provided there are no violations of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit are generally contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate foreign or domestic trade transactions. Additionally, the Company enters into risk participations in bankers' acceptances wherein a fee is received to guarantee a portion of the credit risk on an acceptance of another bank. The majority of these types of commitments have terms of 1 year or less. At March 31, 2017, the carrying amount of the Company's risk participations in bankers' acceptances and standby and commercial letters of credit totaled $3 million. Estimated exposure to loss related to these commitments is covered by the allowance for losses on unfunded commitments. The carrying amounts of the standby and commercial letters of credit and the allowance for losses on unfunded credit commitments are included in other liabilities on the consolidated balance sheet.

The credit risk involved in issuing loan commitments and standby and commercial letters of credit is essentially the same as that involved in extending loans to customers and is represented by the contractual amount of these instruments. Collateral may be obtained based on management's credit assessment of the customer.

Other commitments include collateralized financing activities, commitments to fund principal investments, other securities, and residual value guarantees.

The Company has three committed facilities to provide collateralized financing to third parties, up to an aggregate of $1.4 billion. One of these facilities is shared with an affiliate with an aggregate commitment up to $250 million. At March 31, 2017, the facilities were not drawn down. For the three months ended March 31, 2017, commitment fees were nominal.

Principal investments include direct investments in private and public companies. The Company issues commitments to provide equity and mezzanine capital financing to private and public companies through direct investments. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle. This cycle, the period over which privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, can vary based on overall market conditions as well as the nature and type of industry in which the companies operate.

The Company occasionally enters into financial guarantee contracts where a premium is received from another financial institution counterparty to guarantee a portion of the credit risk on interest rate swap contracts entered into between the financial institution and its customer. The Company becomes liable to pay the financial institution only if the financial institution is unable to collect amounts owed to them by their customer. As of March 31, 2017, the current exposure to loss under these contracts totaled $13 million, and the maximum potential exposure to loss in the future was estimated at $42 million.

The Company is subject to various pending and threatened legal actions that arise in the normal course of business. The Company maintains liabilities for losses from legal actions that are recorded when they are

85

Note 12—Commitments, Contingencies and Guarantees (Continued)

determined to be both probable in their occurrence and can be reasonably estimated. Management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity.

Note 13—Business Segments

The Company has five reportable segments: Regional Bank, U.S. Wholesale Banking, Transaction Banking, Investment Banking & Markets and MUFG Securities Americas Inc. Below is a detailed description of these reportable segments.

Regional Bank

The Regional Bank provides banking products and services to individual and business customers in California, Washington and Oregon through five major business lines.

Consumer Banking serves consumers and small businesses through 352 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. Products and services include checking and deposit accounts; residential mortgage loans; consumer loans; home equity lines of credit; credit cards; bill and loan payment services; and merchant services.

Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues up to $1 billion. Through partnerships with other areas of the Bank, Commercial Banking clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Real Estate Industries provides financing solutions for existing properties and construction projects to professional real estate developers. Property types supported include apartment, office, retail, industrial and single-family residential on the West Coast and in select metropolitan areas across the country. Real Estate Industries also makes tax credit investments in affordable housing projects through its Community Development Finance unit. Through partnerships with other areas of the bank, Real Estate Industries clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Wealth Markets serves corporate, institutional, non-profit and individual clients. Capabilities include Wealth Planning / Trust & Estate Services; Investment Management through HighMark Capital Management, Inc., an SEC-registered investment advisory firm wholly-owned by the bank; Brokerage through UnionBanc Investment Services, LLC, an SEC-registered broker-dealer/investment advisory firm wholly-owned by the bank; and Private Wealth Management.

PurePoint Financial serves consumers through a national deposit platform offering savings accounts and CD products to customers through an online platform with services provided through a call center and a network of financial centers in Florida, Illinois and Texas.

U.S. Wholesale Banking

U.S. Wholesale Banking provides commercial lending products, including commercial loans, lines of credit and project financing, to corporate customers with revenues generally greater than $1 billion. The segment 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). By working with the Company's other segments, U.S. Wholesale Banking offers its customers a range of noncredit services, which include global treasury management, capital market solutions, and various foreign exchange, interest rate risk and commodity risk management products.

86

Note 13—Business Segments (Continued)

Transaction Banking

Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and institutional trust and custody, to the Company's customers. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations.

Investment Banking & Markets

Investment Banking & Markets, which includes Global Capital Markets of the Americas, works with the Company's other segments to provide customers structured credit services, including project finance, leasing and equipment finance, commercial finance, funds finance and securitizations. Investment Banking & Markets also provides capital markets solutions, including syndicated loans, equity and debt underwriting, tax equity and merchant banking investments; risk management solutions, including foreign exchange, interest rate and energy risk management solutions; and facilitates merchant and investment banking-related transactions.

MUFG Securities Americas Inc.

MUSA is MUAH's broker-dealer subsidiary which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equity securities transactions.

Other

The Company generally applies a "market view" perspective in measuring the business segments. The market view is a measurement of customer markets aggregated to show all revenues generated and expenses incurred from all products and services sold to those customers regardless of where product areas organizationally report. Therefore, revenues and expenses are included in both the business segment that provides the service and the business segment that manages the customer relationship. The duplicative results from this internal management accounting view are eliminated in "Other." Certain of the transferred IHC entities are not measured using a "market view" perspective.

"Other" includes the Asian Corporate Banking segment and Corporate Treasury. The Asian Corporate Banking segment offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan and other Asian countries. Corporate Treasury is responsible for ALM, wholesale funding and the ALM investment and derivatives hedging portfolios. These treasury management activities are carried out to manage the net interest rate and liquidity risks of the Company's balance sheet and to manage those risks within the guidelines established by ALCO. For additional discussion regarding these risk management activities, see Part I, Item 3. “Quantitative and Qualitative Disclosures About Market Risk” in this Form 10-Q.

Additionally, "Other" is comprised of certain corporate activities of the Company; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; fees from affiliates and noninterest expenses associated with BTMU's U.S. branch banking operations; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and FDIC covered assets.

The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity

87

Note 13—Business Segments (Continued)

or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Beginning with the second quarter of 2016, the Company revised its methodology for allocating certain indirect costs to the segments. Beginning with the third quarter of 2016, the Company revised its funds transfer pricing methodology related to certain deposits. Prior period results have been updated to reflect these changes in methodology. Certain of the transferred IHC entities are not measured using management accounting methodologies.

As of and for the Three Months Ended March 31, 2017:
(Dollars in millions)	Regional Bank		U.S. Wholesale Banking		Transaction Banking		Investment Banking & Markets			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations - Market View (1)
Net interest income (expense)	$	498	$	87	$	137	$	42		$	59	$	(28	)	$	795
Noninterest income (expense)	112		104		39		79			84		70			488
Total revenue	610		191		176		121			143		42			1,283
Noninterest expense	502		53		111		59			105		176			1,006
(Reversal of) provision for credit losses	2		—		—		(10		)	—		(22		)	(30		)
Income (loss) before income taxes and including noncontrolling interests	106		138		65		72			38		(112		)	307
Income tax expense (benefit)	23		55		26		(3		)	15		(33		)	83
Net income (loss) including noncontrolling interests	83		83		39		75			23		(79		)	224
Deduct: net loss from noncontrolling interests	—		—		—		—			—		5			5
Net income (loss) attributable to MUAH	$	83	$	83	$	39	$	75		$	23	$	(74	)	$	229
Total assets, end of period	$	63,950	$	11,179	$	2,094	$	13,778		$	30,472	$	28,205		$	149,678

(1) The transferred IHC entities are not measured using a "market view" perspective.

As of and for the Three Months Ended March 31, 2016:
(Dollars in millions)	Regional Bank			U.S. Wholesale Banking			Transaction Banking		Investment Banking & Markets			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations - Market View (1)
Net interest income (expense)	$	475		$	107		$	113	$	56		$	25	$	(52	)	$	724
Noninterest income (expense)	114			29			46		47			71		167			474
Total revenue	589			136			159		103			96		115			1,198
Noninterest expense	441			49			120		58			86		214			968
(Reversal of) provision for credit losses	(2		)	130			2		31			—		1			162
Income (loss) before income taxes and including noncontrolling interests	150			(43		)	37		14			10		(100		)	68
Income tax expense (benefit)	42			(17		)	14		(19		)	4		(6		)	18
Net income (loss) including noncontrolling interests	108			(26		)	23		33			6		(94		)	50
Deduct: net loss from noncontrolling interests	—			—			—		1			—		11			12
Net income (loss) attributable to MUAH	$	108		$	(26	)	$	23	$	34		$	6	$	(83	)	$	62
Total assets, end of period	$	62,190		$	15,173		$	2,522	$	14,556		$	32,961	$	29,152		$	156,554

(1) The transferred IHC entities are not measured using a "market view" perspective.

88

Note 14—Related Party Transactions

MUAH is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. (formerly Mitsubishi UFJ Securities (USA), Inc.). It is owned by BTMU and MUFG. BTMU is a wholly-owned subsidiary of MUFG.

On July 1, 2016, in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential standards, MUAH was designated the U.S. Intermediate Holding Company of MUFG.

The Company provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The Bank and BTMU participate in a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided.

In addition to the above, the Company conducts transactions with affiliates which include BTMU, MUFG and other entities which are directly or indirectly owned by MUFG. The transactions include capital market transactions, facilitating securities transactions, secured financing transactions, advisory services, clearing and operational support. Under services level agreements the Company provides services to and receives services from various affiliates. The Company also has referral agreements with its affiliates and pays referral fees from investment banking revenue earned.

Related party transactions reflect market-based pricing. These transactions are subject to federal and state statutory and regulatory restrictions and limitations.

The tables and discussion below represent the more significant related party balances and income (expenses) generated by related party transactions.

As of March 31, 2017 and December 31, 2016, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	March 31, 2017		December 31, 2016
Assets:
Cash and cash equivalents	$	105	$	102
Securities borrowed or purchased under resale agreements	2,386		2,765
Other assets	190		161
Liabilities:
Deposits	$	661	$	623
Securities loaned or sold under repurchase agreements	597		385
Commercial paper and other short-term borrowings	1,196		1,372
Long-term debt	5,966		6,042
Other liabilities	124		63

89

Note 14—Related Party Transactions (Continued)

Revenue and expenses with affiliates for the three months ended March 31, 2017 and 2016 were as follows:

	For the Three Months Ended   March 31,
(Dollars in millions)	2017		2016
Interest Income
Securities borrowed or purchased under resale agreements	$	7	$	6
Interest Expense
Commercial paper and other short-term borrowings	2		6
Long-term debt	28		7
Securities loaned or sold under repurchase agreements	1		—
Noninterest Income
Fees from affiliates	219		212
Other, net	2		—
Noninterest Expense
Other	25		24

At March 31, 2017, the Company had $1.9 billion in uncommitted, unsecured borrowing facilities and $475 million in uncommitted, secured borrowing facilities with affiliates. See Note 6 and Note 7 to these consolidated financial statements for more information on debt due to affiliates.

At March 31, 2017 and December 31, 2016, the Company had derivative contracts with affiliates totaling $1.5 billion and $1.6 billion, respectively, in notional balances, with $76 million and $72 million in net unrealized gains at March 31, 2017 and December 31, 2016, respectively.

An affiliate extends guarantees on certain liabilities arising out of or in connection with agreements with certain counterparties. At March 31, 2017, the guaranteed balance was $1 million. There was no amount guaranteed at December 31, 2016. The guarantee fee was nominal for the three months ended March 31, 2017, and 2016.

90

PART II. OTHER INFORMATION

Item 1.   Legal Proceedings

We are subject to various pending and threatened legal actions that arise in the normal course of business. We maintain liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. We believe the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on our consolidated financial position, results of operations, or liquidity.

Item 1A.   Risk Factors

For a discussion of risk factors relating to our business, please refer to Part I, Item 1A. of our 2016 Form 10-K, which is incorporated by reference herein.

Item 6.   Exhibits

A list of exhibits to this Form 10-Q is set forth on the Exhibit Index immediately preceding such exhibits and is incorporated herein by reference.

91

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MUFG AMERICAS HOLDINGS CORPORATION (Registrant)
Date: May 10, 2017	By:	/s/ STEPHEN E. CUMMINGS
		Stephen E. Cummings President and Chief Executive Officer (Principal Executive Officer)
Date: May 10, 2017	By:	/s/ JOHANNES WORSOE
		Johannes Worsoe Chief Financial Officer (Principal Financial Officer)
Date: May 10, 2017	By:	/s/ ROLLAND D. JURGENS
		Rolland D. Jurgens Controller and Chief Accounting Officer (Principal Accounting Officer)

92

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(1)
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(1)
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(2)
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(2)
101	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, is formatted in XBRL interactive data files: (i) Consolidated Statements of Income; (ii) Consolidated Statements of Comprehensive Income; (iii) Consolidated Balance Sheets; (iv) Consolidated Statements of Changes in Stockholders' Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Financial Statements(1)

(1) Filed herewith.

(2) Furnished herewith. In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.

93

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Stephen E. Cummings, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MUFG Americas Holdings Corporation (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: May 10, 2017

By:	/s/ STEPHEN E. CUMMINGS
	Stephen E. Cummings President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Johannes Worsoe, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MUFG Americas Holdings Corporation (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: May 10, 2017

By:	/s/ JOHANNES WORSOE
	Johannes Worsoe Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of MUFG Americas Holdings Corporation (the "Company") on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Stephen E. Cummings, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 10, 2017

By:	/s/ STEPHEN E. CUMMINGS
	Stephen E. Cummings President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of MUFG Americas Holdings Corporation (the "Company") on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Johannes Worsoe, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 10, 2017

By:	/s/ JOHANNES WORSOE
	Johannes Worsoe Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document And Entity Information
Entity Registrant Name	MUFG Americas Holdings Corporation
Entity Central Index Key	0001011659
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		144,322,280
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Trading Symbol	ub

XML

Consolidated Statements of Income - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Interest Income
Loans		$ 708	$ 706
Securities		129	110
Securities borrowed or purchased under resale agreements		63	50
Trading assets		74	22
Other		10	6
Total interest income		984	894
Interest Expense
Deposits		49	49
Commercial paper and other short-term borrowings		8	3
Long-term debt		57	73
Securities loaned or sold under repurchase agreements		59	32
Trading liabilities		16	13
Total interest expense		189	170
Net Interest Income	[1]	795	724
(Reversal of) provision for credit losses	[1]	(30)	162
Net interest income after (reversal of) provision for credit losses		825	562
Noninterest Income
Service charges on deposit accounts		48	49
Trust and investment management fees		29	32
Trading account activities		(4)	28
Securities gains, net		2	13
Credit facility fees		26	27
Brokerage commissions and fees		18	19
Card processing fees, net		11	9
Investment banking and syndication fees		88	61
Fees from affiliates		219	212
Other, net		51	24
Total noninterest income		488	474
Noninterest Expense
Salaries and employee benefits		615	595
Net occupancy and equipment		82	81
Professional and outside services		116	105
Software		46	37
Intangible asset amortization		20	14
Regulatory assessments		7	7
Other		120	129
Total noninterest expense	[1]	1,006	968
Income before income taxes and including noncontrolling interests	[1]	307	68
Income tax expense	[1]	83	18
Net Income Including Noncontrolling Interests	[1]	224	50
Deduct: Net loss from noncontrolling interests	[1]	5	12
Net Income Attributable to MUAH	[1]	$ 229	$ 62

[1] The transferred IHC entities are not measured using a "market view" perspective.

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net Income Attributable to MUAH	[1]	$ 229	$ 62
Other Comprehensive Income (Loss), Net of Tax:
Net change in unrealized gains (losses) on cash flow hedges		(30)	132
Net change in unrealized gains (losses) on investment securities		35	90
Foreign currency translation adjustment		1	4
Pension and other postretirement benefit adjustments		7	10
Other		0	(2)
Total other comprehensive income (loss)		13	234
Comprehensive Income (Loss) Attributable to MUAH		242	296
Comprehensive loss from noncontrolling interests		(5)	(12)
Total Comprehensive Income (Loss)		$ 237	$ 284

[1] The transferred IHC entities are not measured using a "market view" perspective.

XML

Consolidated Balance Sheets - USD ($) $ in Millions		Mar. 31, 2017		Dec. 31, 2016
Assets
Cash and due from banks		$ 1,736		$ 1,909
Interest bearing deposits in banks		3,091		3,844
Total cash and cash equivalents		4,827		5,753
Securities borrowed or purchased under resale agreements		19,992		19,747
Trading account assets (includes $1,027 at March 31, 2017 and $1,122 at December 31, 2016 pledged as collateral that may be repledged)		8,926		8,942
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)		14,925		14,141
Securities held to maturity (Fair value $10,348 at March 31, 2017 and $10,316 at December 31, 2016)		10,374		10,337
Loans held for investment	[1]	78,434		77,551
Allowance for loan losses		(570)		(639)
Loans held for investment, net		77,864		76,912
Premises and equipment, net		618		591
Goodwill		3,225		3,225
Other assets		8,927		8,496
Total assets		149,678	[2]	148,144
Deposits:
Noninterest bearing		35,020		35,654
Interest bearing		51,513		51,293
Total deposits		86,533		86,947
Securities loaned or sold under repurchase agreements		25,079		24,616
Commercial paper and other short-term borrowings		3,487		2,360
Long-term debt		11,333		11,410
Trading account liabilities		3,233		2,905
Other liabilities		2,383		2,520
Total liabilities		132,048		130,758
Commitments, contingencies and guarantees—See Note 12
Preferred stock:
Authorized 5,000,000 shares; no shares issued or outstanding		0		0
Common stock, par value $1 per share:
Authorized 300,000,000 shares, 144,322,280 shares issued and outstanding as of March 31, 2017 and December 31, 2016		144		144
Additional paid-in capital		7,892		7,884
Retained earnings		10,331		10,101
Accumulated other comprehensive loss		(883)		(896)
Total MUAH stockholders' equity		17,484		17,233
Noncontrolling interests		146		153
Total equity		17,630		17,386
Total liabilities and equity		$ 149,678		$ 148,144

[1] Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

[2] The transferred IHC entities are not measured using a "market view" perspective.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Trading account assets pledged as collateral	$ 1,027	$ 1,122
Securities available-for-sale pledged as collateral	173	148
Fair value of securities held to maturity	$ 10,348	$ 10,316
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value, (dollars per share)	$ 1	$ 1
Common stock, share authorized (in shares)	300,000,000	300,000,000
Common stock, share issued (in shares)	144,322,280	144,322,280
Common stock, share outstanding (in shares)	144,322,280	144,322,280

XML

Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Millions	Total		Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Balance, beginning at Dec. 31, 2015	$ 16,593		$ 144	$ 7,868	$ 9,116	$ (750)	$ 215
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	50	[1]			62		(12)
Other comprehensive income (loss), net of tax	234					234
Compensation—restricted stock units	10			10	0
Other	7			0	0		7
Net change	301			10	62	234	(5)
Balance, ending at Mar. 31, 2016	16,894		144	7,878	9,178	(516)	210
Balance, beginning at Dec. 31, 2016	17,386		144	7,884	10,101	(896)	153
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	224	[1]			229		(5)
Other comprehensive income (loss), net of tax	13					13
Compensation—restricted stock units	9			8	1
Other	(2)			0	0		(2)
Net change	244			8	230	13	(7)
Balance, ending at Mar. 31, 2017	$ 17,630		$ 144	$ 7,892	$ 10,331	$ (883)	$ 146

[1] The transferred IHC entities are not measured using a "market view" perspective.

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net income including noncontrolling interests	[1]	$ 224	$ 50
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Reversal of) provision for credit losses	[1]	(30)	162
Depreciation, amortization and accretion, net		80	87
Stock-based compensation—restricted stock units		14	15
Deferred income taxes		31	(16)
Net gains on sales of securities		(2)	(13)
Net decrease (increase) in securities borrowed or purchased under resale agreements		(245)	2,962
Net decrease (increase) in securities loaned or sold under repurchase agreements		463	(1,930)
Net decrease (increase) in trading account assets		16	(1,895)
Net decrease (increase) in other assets		(568)	239
Net increase (decrease) in trading account liabilities		328	663
Net increase (decrease) in other liabilities		(27)	7
Loans originated for sale		(146)	(519)
Net proceeds from sale of loans originated for sale		208	514
Pension and other benefits adjustment		(127)	(149)
Other, net		(12)	8
Total adjustments		(17)	135
Net cash provided by (used in) operating activities		207	185
Cash Flows from Investing Activities:
Proceeds from sales of securities available for sale		608	1,658
Proceeds from paydowns and maturities of securities available for sale		567	378
Purchases of securities available for sale		(2,018)	(610)
Proceeds from paydowns and maturities of securities held to maturity		408	360
Purchases of securities held to maturity		(499)	(866)
Proceeds from sales of loans		347	49
Net decrease (increase) in loans		(1,194)	(1,588)
Purchases of other investments		(14)	(67)
Other, net		27	(77)
Net cash provided by (used in) investing activities		(1,768)	(763)
Cash Flows from Financing Activities:
Net increase (decrease) in deposits		(425)	5,149
Net increase (decrease) in commercial paper and other short-term borrowings		1,145	(246)
Proceeds from issuance of senior debt due to BTMU		3,521	0
Repayment of long-term debt		(3,602)	(565)
Other, net		(2)	(15)
Change in noncontrolling interests		(2)	8
Net cash provided by (used in) financing activities		635	4,331
Net change in cash and cash equivalents		(926)	3,753
Cash and cash equivalents at beginning of period		5,753	4,807
Cash and cash equivalents at end of period		4,827	8,560
Cash Paid During the Period For:
Interest		187	138
Income taxes, net		22	50
Supplemental Schedule of Noncash Investing and Financing Activities:
Net transfer of loans held for investment to (from) loans held for sale		$ 230	$ (81)

[1] The transferred IHC entities are not measured using a "market view" perspective.

XML

Summary of Significant Accounting Policies and Nature of Operations

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Nature of Operations

Summary of Significant Accounting Policies and Nature of Operations

MUFG Americas Holdings Corporation (MUAH) is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUFG Securities Americas Inc. (MUSA) (formerly Mitsubishi UFJ Securities (USA), Inc.). MUAH provides a wide range of financial services to consumers, small businesses, middle-market companies and major corporations nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The unaudited Consolidated Financial Statements of MUFG Americas Holdings Corporation, its subsidiaries, and its consolidated variable interest entities (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the SEC. However, they do not include all of the disclosures necessary for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the first quarter of 2017 are not necessarily indicative of the operating results anticipated for the full year. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Form 10-K).

The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management’s expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company’s results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company’s financial statements include, but are not limited to, the allowance for credit losses (Note 3), goodwill impairment, fair value of financial instruments (Note 8), hedge accounting (Note 9), pension accounting (Note 11), income taxes, and transfer pricing.

Recently Issued Accounting Pronouncements

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the ASU requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to interim and annual periods beginning on January 1, 2018, with early adoption permitted in 2017. The Company plans to apply the modified retrospective method upon adoption on January 1, 2018. As part of our implementation progress to date, we have completed the impact assessment phase and are evaluating potential changes to processes and controls. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends the accounting, presentation, and disclosure requirements for certain financial instruments. The ASU requires that all equity investments be recorded at fair value through net income (other than those accounted for under equity method or result in consolidation of the investee); however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability under the fair value option. The ASU also clarifies that an entity must evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. In addition, the ASU amends the presentation and disclosure requirements for financial instruments and now requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted for the amendments to the accounting for financial liabilities under the fair value option. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases, which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases.  The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases.  The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. The Company plans to adopt the ASU on January 1, 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. The Company has recently begun the planning phase for this project and management is in the initial stage of policy development and issue identification. Management is currently evaluating technology solutions and assessing accounting for the current lease portfolio under the new ASU.

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The ASU amends ASU 2014-09, Revenue from Contracts with Customers, with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. The ASU is effective upon the adoption of ASU 2014-09, which is effective for periods beginning January 1, 2018, with early adoption permitted in 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides new guidance on the accounting for credit losses for instruments that are within its scope. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. In the second quarter the Company plans to begin a current state gap analysis, which will be followed by collecting business and data requirements to support the project planning phase of the implementation.

Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, to address diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company's statement of cash flows.

Income Tax Consequences of Intra-Entity Asset Transfers

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity assets other than inventory. The ASU will require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect adoption of this guidance to significantly impact the Company's financial position and results of operations.

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, Restricted Cash, to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and the amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective for interim and annual periods beginning on January 1, 2018 using a retrospective transition method. Early adoption is permitted. Management does not expect the adoption of this guidance to have a significant impact on the Company's statement of cash flows.

Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which specifies when a set of assets and activities constitutes a business. The ASU adds a “screen” to determine when a set is not a business, thus reducing the number of transactions deemed businesses. Specifically, if the fair value of the gross assets acquired is concentrated in a single identifiable asset (or a group of similar identifiable assets), the set is not deemed a business. Otherwise, to be considered a business, a set must include at least one input and a substantive process that together significantly contribute to the ability to create outputs.  Although outputs are not required to be a business, the ASU narrows the definition of an output and limits the instances where sets that lack outputs are deemed businesses. The ASU is effective for interim and annual periods prospectively beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Amendments to SEC Paragraphs Pursuant to Staff Announcements at EITF Meetings

In January 2017, the FASB issued ASU 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments clarify the SEC staff’s expectations about the extent of disclosures registrants should make about the effects of ASU 2014-09, Revenue from Contracts with Customers, ASU 2016-02, Leases, and ASU 2016-13, Measurement of Credit Losses on Financial Instruments, particularly where the registrant cannot reasonably estimate the ASU’s anticipated impact on the financial statements. The amendments also clarify the SEC staff’s view that the use of the proportional amortization method must be consistently applied and it may not be extended, by analogy, to other investments that are not investments in qualified affordable housing projects. The ASU is effective upon issuance. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Early adoption is permitted for any impairment tests performed after January 1, 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of

Nonfinancial Assets

In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets (issued as part of ASU 2014-09), and provide guidance on partial sales of nonfinancial assets. The ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an “in substance nonfinancial asset” is within the scope of ASC 610-20. The ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASU is effective upon the adoption of ASU 2014-09, which the Company plans to adopt beginning January 1, 2018. It allows an entity to use either a retrospective or modified retrospective approach. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans.  The ASU  also now mandates that only the service cost component of net benefit cost is eligible for capitalization on certain internally produced assets. The ASU is effective for interim and annual periods beginning January 1, 2018, with retrospective application for the new income statement presentation requirements and prospective application for the new capitalization requirement. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

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Securities

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Securities Available for Sale

At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.

	March 31, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	2,920	$	2	$	109	$	2,813
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	7,474		5		101		7,378
Privately issued	431		1		6		426
Privately issued - commercial mortgage-backed securities	664		5		6		663
Collateralized loan obligations	1,985		13		1		1,997
Other	7		—		—		7
Asset Liability Management securities	13,481		26		223		13,284
Other debt securities:
Direct bank purchase bonds	1,528		39		24		1,543
Other	94		—		1		93
Equity securities	5		—		—		5
Total securities available for sale	$	15,108	$	65	$	248	$	14,925

	December 31, 2016
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	2,625	$	1	$	121	$	2,505
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	6,814		3		122		6,695
Privately issued	333		1		7		327
Privately issued - commercial mortgage-backed securities	666		4		6		664
Collateralized loan obligations	2,219		4		5		2,218
Other	7		—		—		7
Asset Liability Management securities	12,664		13		261		12,416
Other debt securities:
Direct bank purchase bonds	1,601		41		29		1,613
Other	108		—		1		107
Equity securities	5		—		—		5
Total securities available for sale	$	14,378	$	54	$	291	$	14,141

The Company’s securities available for sale with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more.

	March 31, 2017
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	2,270	$	109	$	—	$	—	$	2,270	$	109
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,567		93		606		8		6,173		101
Privately issued	249		5		26		1		275		6
Privately issued - commercial mortgage-backed securities	371		6		11		—		382		6
Collateralized loan obligations	168		—		129		1		297		1
Asset Liability Management securities	8,625		213		772		10		9,397		223
Other debt securities:
Direct bank purchase bonds	193		6		539		18		732		24
Other	91		1		5		—		96		1
Total securities available for sale	$	8,909	$	220	$	1,316	$	28	$	10,225	$	248

	December 31, 2016
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	2,257	$	121	$	—	$	—	$	2,257	$	121
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,501		113		667		9		6,168		122
Privately issued	249		6		29		1		278		7
Privately issued - commercial mortgage-backed securities	415		6		11		—		426		6
Collateralized loan obligations	75		—		1,077		5		1,152		5
Other	—		—		1		—		1		—
Asset Liability Management securities	8,497		246		1,785		15		10,282		261
Other debt securities:
Direct bank purchase bonds	386		12		499		17		885		29
Other	36		1		—		—		36		1
Equity securities	—		—		5		—		5		—
Total securities available for sale	$	8,919	$	259	$	2,289	$	32	$	11,208	$	291

At March 31, 2017, the Company did not have the intent to sell any securities in an unrealized loss position before a recovery of the amortized cost, which may be at maturity. The Company also believes that it is more likely than not that it will not be required to sell the securities prior to recovery of amortized cost.

Agency residential mortgage-backed securities consist of securities guaranteed by a U.S. government agency or a government-sponsored agency such as Fannie Mae, Freddie Mac or Ginnie Mae. These securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. The unrealized losses on agency residential mortgage-backed securities resulted from changes in interest rates and not from changes in credit quality. At March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities because the Company determined that the strength of the issuers’ guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses.

Commercial mortgage-backed securities are collateralized by commercial mortgage loans and are generally subject to prepayment penalties. The unrealized losses on commercial mortgage-backed securities resulted from higher market yields since purchase. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities.

The Company’s CLOs consist of Cash Flow CLOs. A Cash Flow CLO is a structured finance product that securitizes a diversified pool of loan assets into multiple classes of notes. Cash Flow CLOs pay the note holders through the receipt of interest and principal repayments from the underlying loans unlike other types of CLOs that pay note holders through the trading and sale of underlying collateral. Unrealized losses typically arise from widening credit spreads and deteriorating credit quality of the underlying collateral. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities.

Other debt securities primarily consist of direct bank purchase bonds, which are not rated by external credit rating agencies. The unrealized losses on these bonds resulted from a higher return on capital expected by the secondary market compared with the return on capital required at the time of origination when the bonds were purchased. The Company estimates the unrealized loss for each security by assessing the underlying collateral of each security. The Company estimates the portion of loss attributable to credit based on the expected cash flows of the underlying collateral using estimates of current key assumptions, such as probability of default and loss severity. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost and potential impairment is identified. Based on the analysis performed as of March 31, 2017, the Company expects to recover the entire amortized cost basis of these securities.

The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	March 31, 2017
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
U.S. Treasury	$	—	$	393	$	2,420	$	—	$	2,813
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		9		301		7,068		7,378
Privately issued	—		1		—		425		426
Privately issued - commercial mortgage-backed securities	—		—		—		663		663
Collateralized loan obligations	—		—		1,020		977		1,997
Other	1		1		5		—		7
Asset Liability Management securities	1		404		3,746		9,133		13,284
Other debt securities:
Direct bank purchase bonds	4		428		719		392		1,543
Other	—		67		—		26		93
Total debt securities available for sale	$	5	$	899	$	4,465	$	9,551	$	14,920

The gross realized gains and losses from sales of available for sale securities for the three months endedMarch 31, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.

	For the Three Months Ended March 31,
(Dollars in millions)	2017		2016
Gross realized gains	$	2	$	13
Gross realized losses	—		—

Securities Held to Maturity

At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.

	March 31, 2017
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	493	$	—	$	—	$	493	$	4	$	—	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,342		2		38		8,306		32		98		8,240
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,636		—		61		1,575		43		7		1,611
Total securities held to maturity	$	10,471	$	2	$	99	$	10,374	$	79	$	105	$	10,348

	December 31, 2016
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	492	$	—	$	—	$	492	$	5	$	—	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,301		3		41		8,263		34		96		8,201
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,645		—		63		1,582		43		7		1,618
Total securities held to maturity	$	10,438	$	3	$	104	$	10,337	$	82	$	103	$	10,316

Amortized cost is defined as the original purchase cost, adjusted for any accretion or amortization of a purchase discount or premium, less principal payments and any impairment previously recognized in earnings. The carrying amount is the difference between the amortized cost and the amount recognized in OCI. The amount recognized in OCI primarily reflects the unrealized gain or loss at date of transfer from available for sale to the held to maturity classification, net of amortization, which is recorded in interest income on securities.

The Company’s securities held to maturity with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more.

	March 31, 2017
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	4,977	$	—	$	96	$	1,324	$	38	$	2	$	6,301	$	38	$	98
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	109		—		2		1,445		61		5		1,554		61		7
Total securities held to maturity	$	5,086	$	—	$	98	$	2,769	$	99	$	7	$	7,855	$	99	$	105

	December 31, 2016
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	4,492	$	—	$	92	$	1,386	$	41	$	4	$	5,878	$	41	$	96
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	111		—		1		1,448		63		6		1,559		63		7
Total securities held to maturity	$	4,603	$	—	$	93	$	2,834	$	104	$	10	$	7,437	$	104	$	103

The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	March 31, 2017
	Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	493	$	497	$	—	$	—	$	—	$	—	$	493	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		326		324		7,980		7,916		8,306		8,240
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	299		309		558		581		718		721		1,575		1,611
Total securities held to maturity	$	792	$	806	$	884	$	905	$	8,698	$	8,637	$	10,374	$	10,348

Securities Pledged and Received as Collateral

At March 31, 2017 and December 31, 2016, the Company pledged $12.4 billion and $12.1 billion, respectively, of available for sale and trading securities as collateral, of which $1.2 billion and $1.3 billion, respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions, securities loaned or sold under repurchase agreements, short term borrowings and to secure public and trust department deposits.

At March 31, 2017 and December 31, 2016, the Company received $30.5 billion and $31.6 billion, respectively, of collateral, of which $30.5 billion and $31.6 billion, respectively, was permitted to be sold or repledged. Of the collateral received, the Company sold or repledged $29.1 billion and $30.5 billion at March 31, 2017 and December 31, 2016, respectively, for derivative asset positions and securities borrowed or purchased under resale agreements.

For further information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to the Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" in our 2016 Form 10-K.

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Loans and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

The following table provides the outstanding balances of loans at March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017			December 31, 2016
Loans held for investment:
Commercial and industrial	$	25,602		$	25,379
Commercial mortgage	14,468			14,625
Construction	2,040			2,283
Lease financing	1,779			1,819
Total commercial portfolio	43,889			44,106
Residential mortgage	31,162			29,922
Home equity and other consumer loans	3,383			3,523
Total consumer portfolio	34,545			33,445
Total loans held for investment(1)	78,434			77,551
Allowance for loan losses	(570		)	(639		)
Loans held for investment, net	$	77,864		$	76,912

(1) Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

Allowance for Loan Losses

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Commercial			Consumer			Unallocated		Total
Allowance for loan losses, beginning of period	$	556		$	83		$	—	$	639
(Reversal of) provision for loan losses	(26		)	12			—		(14		)
Other	1			—			—		1
Loans charged-off	(55		)	(11		)	—		(66		)
Recoveries of loans previously charged-off	9			1			—		10
Allowance for loan losses, end of period	$	485		$	85		$	—	$	570

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	653		$	50		$	20		$	723
(Reversal of) provision for loan losses	171			7			(20		)	158
Other	4			—			—			4
Loans charged-off	(8		)	(1		)	—			(9		)
Recoveries of loans previously charged-off	4			1			—			5
Allowance for loan losses, end of period	$	824		$	57		$	—		$	881

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in millions)	Commercial		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	117	$	20	$	137
Collectively evaluated for impairment	368		65		433
Total allowance for loan losses	$	485	$	85	$	570
Loans held for investment:
Individually evaluated for impairment	$	638	$	372	$	1,010
Collectively evaluated for impairment	43,251		34,173		77,424
Total loans held for investment	$	43,889	$	34,545	$	78,434

	December 31, 2016
(Dollars in millions)	Commercial		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	151	$	17	$	168
Collectively evaluated for impairment	405		66		471
Total allowance for loan losses	$	556	$	83	$	639
Loans held for investment:
Individually evaluated for impairment	$	636	$	386	$	1,022
Collectively evaluated for impairment	43,470		33,059		76,529
Total loans held for investment	$	44,106	$	33,445	$	77,551

Nonaccrual and Past Due Loans

The following table presents nonaccrual loans as of March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017		December 31, 2016
Commercial and industrial	$	400	$	458
Commercial mortgage	33		31
Total commercial portfolio	433		489
Residential mortgage	110		171
Home equity and other consumer loans	26		29
Total consumer portfolio	136		200
Total nonaccrual loans	$	569	$	689
Troubled debt restructured loans that continue to accrue interest	$	336	$	215
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	301	$	384

The following tables show an aging of the balance of loans held for investment, by class as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	27,317	$	10	$	54	$	64	$	27,381
Commercial mortgage	14,435		18		15		33		14,468
Construction	2,040		—		—		—		2,040
Total commercial portfolio	43,792		28		69		97		43,889
Residential mortgage	31,012		110		40		150		31,162
Home equity and other consumer loans	3,347		21		15		36		3,383
Total consumer portfolio	34,359		131		55		186		34,545
Total loans held for investment	$	78,151	$	159	$	124	$	283	$	78,434

	December 31, 2016
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	27,085	$	54	$	59	$	113	$	27,198
Commercial mortgage	14,571		37		17		54		14,625
Construction	2,283		—		—		—		2,283
Total commercial portfolio	43,939		91		76		167		44,106
Residential mortgage	29,770		110		42		152		29,922
Home equity and other consumer loans	3,479		27		17		44		3,523
Total consumer portfolio	33,249		137		59		196		33,445
Total loans held for investment	$	77,188	$	228	$	135	$	363	$	77,551

Loans 90 days or more past due and still accruing totaled $24 million at March 31, 2017 and $23 million at December 31, 2016.

Credit Quality Indicators

Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. Loans within the commercial portfolio segment are classified as either pass or criticized. Criticized credits are those that have regulatory risk ratings of special mention, substandard or doubtful; classified credits are those that have regulatory risk ratings of substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions.

The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings. The amounts presented reflect unpaid principal balances less charge-offs.

	March 31, 2017
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,708	$	635	$	1,007	$	27,350
Commercial mortgage	14,119		93		237		14,449
Construction	1,862		118		61		2,041
Total commercial portfolio	$	41,689	$	846	$	1,305	$	43,840

	December 31, 2016
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,028	$	860	$	1,097	$	26,985
Commercial mortgage	14,152		161		188		14,501
Construction	2,162		121		—		2,283
Total commercial portfolio	$	41,342	$	1,142	$	1,285	$	43,769

The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $10 million and $11 million of loans covered by FDIC loss share agreements, at March 31, 2017 and December 31, 2016, respectively:

	March 31, 2017
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	31,052	$	110	$	31,162
Home equity and other consumer loans	3,357		26		3,383
Total consumer portfolio	$	34,409	$	136	$	34,545

	December 31, 2016
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	29,751	$	171	$	29,922
Home equity and other consumer loans	3,494		29		3,523
Total consumer portfolio	$	33,245	$	200	$	33,445

The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by FICO and refreshed LTV ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index data available for the property location. 

The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at March 31, 2017 and December 31, 2016. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	March 31, 2017
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	24,680		$	5,746		$	436		$	30,862
Home equity and other consumer loans	2,248			937			139			3,324
Total consumer portfolio	$	26,928		$	6,683		$	575		$	34,186
Percentage of total	79		%	19		%	2		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2016
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	23,598		$	5,597		$	444		$	29,639
Home equity and other consumer loans	2,372			977			111			3,460
Total consumer portfolio	$	25,970		$	6,574		$	555		$	33,099
Percentage of total	78		%	20		%	2		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	March 31, 2017
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	29,721		$	1,090		$	14		$	37		$	30,862
Home equity loans	2,103			219			37			39			2,398
Total consumer portfolio	31,824			1,309			51			76			33,260
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

	December 31, 2016
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	28,547		$	1,030		$	16		$	46		$	29,639
Home equity loans	2,160			206			41			43			2,450
Total consumer portfolio	$	30,707		$	1,236		$	57		$	89		$	32,089
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

Troubled Debt Restructurings

The following table provides a summary of the Company’s recorded investment in TDRs as of March 31, 2017 and December 31, 2016. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $48 million and $59 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of March 31, 2017 and December 31, 2016, respectively.

(Dollars in millions)	March 31, 2017		December 31, 2016
Commercial and industrial	$	304	$	321
Commercial mortgage	9		9
Construction	61		—
Total commercial portfolio	374		330
Residential mortgage	234		239
Home equity and other consumer loans	29		30
Total consumer portfolio	263		269
Total restructured loans	$	637	$	599

For the first quarter of 2017, TDR modifications in the commercial portfolio segment were primarily composed of interest rate changes, maturity extensions, covenant waivers, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, primarily all of the modifications were composed of interest rate reductions and maturity extensions. Charge-offs related to TDR modifications for the three months ended March 31, 2017 and March 31, 2016 were de minimis. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs is measured on an individual loan basis or in pools with similar risk characteristics.

The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three months ended March 31, 2017 and 2016:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	78	$	78
Commercial mortgage	1		1
Construction	61		61
Total commercial portfolio	140		140
Residential mortgage	4		4
Total consumer portfolio	4		4
Total	$	144	$	144

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	50	$	50
Commercial mortgage	5		5
Total commercial portfolio	55		55
Residential mortgage	4		4
Home equity and other consumer loans	1		1
Total consumer portfolio	5		5
Total	$	60	$	60

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three months ended March 31, 2017 and 2016, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

(Dollars in millions)	For the Three Months Ended March 31, 2017
Commercial and industrial	$	2
Commercial mortgage	1
Total commercial portfolio	3
Residential mortgage	1
Total consumer portfolio	1
Total	$	4

(Dollars in millions)	For the Three Months Ended March 31, 2016
Commercial and industrial	$	1
Total commercial portfolio	1
Residential mortgage	2
Total consumer portfolio	2
Total	$	3

For loans in the consumer portfolio in which impairment is measured using the present value of expected future cash flows discounted at the loan’s effective interest rate, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses.

Loan Impairment

Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, and commercial mortgage loan portfolios and loans modified in a TDR. The Company records an impairment allowance when the value of an impaired loan is less than the recorded investment in the loan.

The following tables show information about impaired loans by class as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	421	$	94	$	515	$	116	$	514	$	125
Commercial mortgage	54		8		62		1		54		9
Construction	—		61		61		—		—		61
Total commercial portfolio	475		163		638		117		568		195
Residential mortgage	243		72		315		20		257		85
Home equity and other consumer loans	38		19		57		—		40		29
Total consumer portfolio	281		91		372		20		297		114
Total	$	756	$	254	$	1,010	$	137	$	865	$	309

	December 31, 2016
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	505	$	36	$	541	$	150	$	672	$	54
Commercial mortgage	86		9		95		1		8		9
Total commercial portfolio	591		45		636		151		680		63
Residential mortgage	250		75		325		17		295		89
Home equity and other consumer loans	41		20		61		—		11		30
Total consumer portfolio	291		95		386		17		306		119
Total	$	882	$	140	$	1,022	$	168	$	986	$	182

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	For the Three Months Ended March 31,
	2017				2016
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	491	$	4	$	624	$	2
Commercial mortgage	18		—		18		—
Construction	10		—		—		—
Total commercial portfolio	519		4		642		2
Residential mortgage	237		2		273		2
Home equity and other consumer loans	29		—		31		1
Total consumer portfolio	266		2		304		3
Total	$	785	$	6	$	946	$	5

The following table presents loan transfers from held to investment to held for sale and proceeds from

sales of loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	For the Three Months Ended March 31,
	2017					2016
(Dollars in millions)	Transfers of loans from held for investment to held for sale, net			Proceeds from sale		Transfers of loans from held for investment to held for sale, net			Proceeds from sale
Commercial portfolio	$	234		$	347	$	(81	)	$	49
Consumer portfolio	(4		)	—		—			—
Total	$	230		$	347	$	(81	)	$	49

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Variable Interest Entities

3 Months Ended

Mar. 31, 2017

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities

In the normal course of business, the Company has certain financial interests in entities which have been determined to be VIEs. Generally, a VIE is a corporation, partnership, trust or other legal structure where the equity investors do not have substantive voting rights, an obligation to absorb the entity’s losses or the right to receive the entity’s returns, or the ability to direct the significant activities of the entity. The following discusses the Company’s consolidated and unconsolidated VIEs.

Consolidated VIEs

The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016:

	March 31, 2017
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	106	$	106	$	—	$	—
Leasing investments	622		173		795		54		54
Total consolidated VIEs	$	622	$	279	$	901	$	54	$	54

	December 31, 2016
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	112	$	112	$	—	$	—
Leasing investments	641		174		815		54		54
Total consolidated VIEs	$	641	$	286	$	927	$	54	$	54

LIHC Investments

The Company sponsors, manages and syndicates two LIHC investment fund structures. These investments are designed to generate a return primarily through the realization of U.S. federal tax credits and deductions. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct activities that most significantly impact the funds’ economic performances and also has the obligation to absorb losses of the funds that could potentially be significant to the funds. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company’s creditors do not have any recourse to the assets of the consolidated LIHC investments.

Leasing Investments

The Company has leasing investments primarily in the wind energy, rail and coal industries. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct the activities of these entities that significantly impact the entities’ economic performances. The Company also has the right to receive potentially significant benefits or the obligation to absorb potentially significant losses of these investments.

Unconsolidated VIEs

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at March 31, 2017 and December 31, 2016. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During the three months endedMarch 31, 2017 and March 31, 2016, the Company had noncash increases in unfunded commitments on LIHC investments of $19 million and $37 million, respectively, included within other liabilities.

	March 31, 2017
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	25	$	199	$	1,148	$	1,372	$	388	$	388	$	1,372
Leasing investments	1		12		28		1,662		1,703		66		66		1,723
Other investments	—		—		24		25		49		—		—		76
Total unconsolidated VIEs	$	1	$	37	$	251	$	2,835	$	3,124	$	454	$	454	$	3,171

			December 31, 2016
			Unconsolidated Assets								Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	25	$	168	$	1,164	$	1,357	$	381	$	381	$	1,357
Leasing investments	1		12		47		1,751		1,811		66		66		1,833
Other investments	—		—		24		26		50		—		—		81
Total unconsolidated VIEs	$	1	$	37	$	239	$	2,941	$	3,218	$	447	$	447	$	3,271

LIHC Investments

The Company makes investments in partnerships and funds formed by third parties. The primary purpose of the partnerships and funds is to invest in low-income housing units and distribute tax credits and tax benefits associated with the underlying properties to investors. The Company is a limited partner investor and is allocated tax credits and deductions, but has no voting or other rights to direct the activities of the funds or partnerships, and therefore is not considered the primary beneficiary and does not consolidate these investments.

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the three months endedMarch 31, 2017 and 2016:

	For the Three Months Ended
	March 31, 2017		March 31, 2016
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	2	$	2
Amortization of LIHC investments included in income tax expense	33		30
Tax credits and other tax benefits from LIHC investments included in income tax expense	45		45

Leasing Investments

The unconsolidated VIEs related to leasing investments are primarily renewable energy investments. Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors. The LLCs are created to operate and manage wind, solar, hydroelectric and cogeneration power plant projects. Power generated by the projects is sold to third parties through long-term purchase power agreements. As a limited investor member, the Company is allocated production tax credits and taxable income or losses associated with the projects. The Company has no voting or other rights to direct the significant activities of the LLCs, and therefore is not considered the primary beneficiary and does not consolidate these investments.

Other Investments

The Company has other investments in structures formed by third parties. The Company has no voting or other rights to direct the activities of the investments that would most significantly impact the entities’ performance, and therefore is not considered the primary beneficiary and does not consolidate these investments.

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Securities Financing Arrangements

3 Months Ended

Mar. 31, 2017

Transfers and Servicing [Abstract]

Securities Financing Arrangements

Securities Financing Arrangements

The Company enters into derivative transactions, securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions. The Company executes these transactions to facilitate customer match-book activity, cover short positions and to fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty.

The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features.

The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016:

	March 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,502	$	787	$	715	$	44	$	2	$	669
Securities borrowed or purchased under resale agreements	31,147		11,155		19,992		19,896		—		96
Total	$	32,649	$	11,942	$	20,707	$	19,940	$	2	$	765
Financial Liabilities:
Derivative liabilities	$	1,533	$	968	$	565	$	170	$	—	$	395
Securities loaned or sold under repurchase agreements	36,235		11,156		25,079		24,470		—		609
Total	$	37,768	$	12,124	$	25,644	$	24,640	$	—	$	1,004

	December 31, 2016
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,626	$	770	$	856	$	20	$	—	$	836
Securities borrowed or purchased under resale agreements	31,386		11,639		19,747		19,657		—		90
Total	$	33,012	$	12,409	$	20,603	$	19,677	$	—	$	926
Financial Liabilities:
Derivative liabilities	$	1,684	$	1,047	$	637	$	176	$	5	$	456
Securities loaned or sold under repurchase agreements	36,255		11,639		24,616		23,812		—		804
Total	$	37,939	$	12,686	$	25,253	$	23,988	$	5	$	1,260

The following tables present the gross obligations for securities sold under agreements to repurchase, and securities loaned by remaining contractual maturity and class of collateral pledged as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	10,925	$	1,886	$	677	$	96	$	13,584
U.S. agency securities	30		3		—		—		33
Other sovereign government obligations	7		20		1		—		28
Money market securities	14		24		34		—		72
Asset-backed securities	1		1		28		—		30
Mortgage-backed securities	9,384		3,701		5,372		—		18,457
Corporate bonds	379		824		1,031		—		2,234
Municipal securities	157		54		143		—		354
Equities	362		49		164		—		575
Total	$	21,259	$	6,562	$	7,450	$	96	$	35,367
Securities loaned:
Equities	718		51		99		—		868
Total	$	718	$	51	$	99	$	—	$	868

	December 31, 2016
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	11,419	$	1,523	$	712	$	316	$	13,970
U.S. agency securities	42		30		—		—		72
Other sovereign government obligations	—		—		16		—		16
Asset-backed securities	20		15		66		—		101
Mortgage-backed securities	8,792		4,450		4,750		—		17,992
Corporate bonds	405		800		909		—		2,114
Municipal securities	74		65		299		—		438
Equities	452		275		164		—		891
Total	$	21,204	$	7,158	$	6,916	$	316	$	35,594
Securities loaned:
Corporate bonds	$	8	$	—	$	—	$	—	$	8
Equities	562		—		91		—		653
Total	$	570	$	—	$	91	$	—	$	661

The Company enters into reverse repurchase agreements, repurchase agreements and securities borrow and loan transactions. Under these agreements and transactions, the Company either receives or provides collateral. The Company receives collateral in the form of securities in connection with reverse repurchase agreements and securities borrowed transactions. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. For additional information related to securities pledged and received as collateral, refer to Note 2 to these consolidated financial statements.

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Commercial Paper and Other Short-Term Borrowings

3 Months Ended

Mar. 31, 2017

Short-term Debt [Abstract]

Commercial Paper and Other Short-Term Borrowings

Commercial Paper and Other Short-Term Borrowings

The following table is a summary of the Company's commercial paper and other short-term borrowings:

(Dollars in millions)	March 31, 2017		December 31, 2016
Debt issued by MUB
Federal funds purchased, with weighted average interest rates of 0.72% and 0.50% at March 31, 2017 and December 31, 2016, respectively	$	40	$	26
Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively	651		263
Federal Home Loan Bank advances, with a weighted average interest rate of 0.62% and 0.59% at March 31, 2017 and December 31, 2016, respectively	1,600		700
Total debt issued by MUB	2,291		989
Debt issued by other MUAH subsidiaries
Short-term debt due to BTMU, with weighted average interest rates of 1.47% and 0.49% at March 31, 2017 and December 31, 2016, respectively	425		679
Short-term debt due to affiliates, with weighted average interest rates of (0.07)% and (0.04)% at March 31, 2017 and December 31, 2016, respectively	771		692
Total debt issued by other MUAH subsidiaries	1,196		1,371
Total commercial paper and other short-term borrowings	$	3,487	$	2,360

Short-term debt due to BTMU consists of both secured and unsecured fixed and floating rate borrowings.

MUSA maintains an uncommitted, unsecured lending facility with Mitsubishi UFJ Securities Holdings Co., Ltd. under which it may borrow up to $1.4 billion. Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or US Dollars. Japanese Yen denominated borrowings include an extension option allowing MUSA to extend the maturity of an individual draw by 100 days at any time prior to its original, stated maturity. At March 31, 2017, MUSA had ¥86 billion ($771 million USD equivalent) drawn under this facility.

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Long-Term Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt:

(Dollars in millions)	March 31, 2017		December 31, 2016
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016	$	250	$	250
Fixed rate 1.625% notes due February 2018	449		449
Fixed rate 2.25% notes due February 2020	997		997
Fixed rate 3.50% notes due June 2022	397		397
Fixed rate 3.00% notes due February 2025	496		496
Senior debt due to BTMU:
Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017	3,500		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017	21		—
Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016	545		545
Subordinated debt due to BTMU:
Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016	300		300
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016	36		36
Total debt issued by MUAH	6,991		3,470
Debt issued by MUB
Senior debt:
Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016	250		250
Fixed rate 2.125% notes due June 2017	500		500
Fixed rate 2.625% notes due September 2018	999		999
Fixed rate 2.250% notes due May 2019	500		500
Senior debt due to BTMU:
Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016	—		1,000
Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016	—		1,500
Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016	—		1,000
Subordinated debt due to BTMU:
Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016	750		750
Other	61		58
Total debt issued by MUB	3,060		6,557

Debt issued by other MUAH subsidiaries
Senior Debt due to BTMU:
Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016	250		250
Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016	288		384
Subordinated Debt due to Affiliate:
Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016	185		185
Nonrecourse Debt due to BTMU:
Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016	127		127
Nonrecourse Debt:
Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016	38		39
Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016	394		398
Total debt issued by other MUAH subsidiaries	1,282		1,383
Total long-term debt	$	11,333	$	11,410

MUAH Senior Debt due to BTMU

During the three months ended March 31, 2017, MUAH borrowed $3.5 billion from BTMU in the form of a senior loan. MUAH may prepay the loan prior to the stated maturity date in whole or in part and in an amount of not less than $500,000. BTMU may accelerate the payment of the loan, in the case of certain events of default. The proceeds of the BTMU Loan have funded loans to MUAH’s subsidiaries. Simultaneously with the funding of the BTMU Loan on March 31, 2017, MUFG Union Bank, N.A., a wholly-owned subsidiary of MUAH, prepaid three loans from BTMU totaling $3.5 billion.

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Fair Value Measurement and Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurement and Fair Value of Financial Instruments

Fair Value Measurement and Fair Value of Financial Instruments

Valuation Methodologies

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. The Company has an established and documented process for determining fair value for financial assets and liabilities that are measured at fair value on either a recurring or nonrecurring basis. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as yield curves, foreign exchange rates, credit spreads, commodity prices and implied volatilities. Valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit quality and that consider the Company's own creditworthiness in determining the fair value of its trading assets and liabilities. For further information related to the valuation methodologies used for certain financial assets and financial liabilities measured at fair value, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

Fair Value Hierarchy

In determining fair value, the Company maximizes the use of observable market inputs and minimizes the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect the Company’s estimate about market data. Based on the observability of the significant inputs used, the Company classifies its fair value measurements in accordance with the three-level hierarchy as defined by GAAP. This hierarchy is based on the quality, observability and reliability of the information used to determine fair value. For further information related to the fair value hierarchy, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

Valuation Processes

The Company has established a valuation committee to oversee its valuation framework for measuring fair value and to establish valuation policies and procedures. The valuation committee’s responsibilities include reviewing fair value measurements and categorizations within the fair value hierarchy and monitoring the use of pricing sources, mark-to-model valuations, dealer quotes and other valuation processes. The valuation committee reports to the Company’s Disclosure & Accounting Committee and meets at least quarterly.

Independent price verification is performed periodically by the Company to test the market data and valuations of substantially all instruments measured at fair value on a recurring basis. As part of its independent price verification procedures, the Company compares pricing sources, tests data variances within certain thresholds and performs variance analysis, utilizing third party valuations and both internal and external models. Results are formally reported on a quarterly basis to the valuation committee. For further information related to valuation processes, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

Fair Value Measurements on a Recurring Basis

The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, by major category and by valuation hierarchy level:

	March 31, 2017
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury securities	$	—		$	1,902		$	—		$	—		$	1,902
U.S. government-sponsored agency securities	—			121			—			—			121
State and municipal securities	—			8			—			—			8
Commercial paper	—			75			—			—			75
Other sovereign government obligations	—			31			—			—			31
Corporate bonds	—			1,273			—			—			1,273
Asset-backed securities	—			183			—			—			183
Mortgage-backed securities	—			4,582			—			—			4,582
Equities	42			—			—			—			42
Interest rate derivative contracts	4			984			2			(361		)	629
Commodity derivative contracts	—			132			1			(124		)	9
Foreign exchange derivative contracts	1			185			1			(119		)	68
Equity derivative contracts	—			—			168			(165		)	3
Total trading account assets	47			9,476			172			(769		)	8,926
Securities available for sale:
U.S. Treasury	—			2,813			—			—			2,813
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			7,378			—			—			7,378
Privately issued	—			426			—			—			426
Privately issued - commercial mortgage-backed securities	—			663			—			—			663
Collateralized loan obligations	—			1,997			—			—			1,997
Other	—			7			—			—			7
Other debt securities:
Direct bank purchase bonds	—			—			1,543			—			1,543
Other	—			67			26			—			93
Equity securities	5			—			—			—			5
Total securities available for sale	5			13,351			1,569			—			14,925
Other assets:
Mortgage servicing rights	—			—			34			—			34
Interest rate hedging contracts	—			7			—			(5		)	2
Other derivative contracts	—			16			1			(13		)	4
Total other assets	—			23			35			(18		)	40
Total assets	$	52		$	22,850		$	1,776		$	(787	)	$	23,891
Percentage of total	—		%	96		%	7		%	(3		)%	100		%
Percentage of total Company assets	—		%	15		%	1		%	(1		)%	15		%
Liabilities
Trading account liabilities:
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,113		$	—		$	—		$	2,113
State and municipal	—			10			—			—			10
Other sovereign government obligations	—			35			—			—			35
Corporate bonds	—			474			—			—			474
Equities	42			—			—			—			42
Trading derivatives:
Interest rate derivative contracts	3			922			—			(665		)	260
Commodity derivative contracts	—			104			—			(55		)	49
Foreign exchange derivative contracts	1			99			1			(18		)	83
Equity derivative contracts	—			—			167			—			167
Total trading account liabilities	46			3,757			168			(738		)	3,233
Other liabilities:
FDIC clawback liability	—			—			113			—			113
Interest rate hedging contracts	—			230			—			(230		)	—
Other derivative contracts	—			—			6			—			6
Total other liabilities	—			230			119			(230		)	119
Total liabilities	$	46		$	3,987		$	287		$	(968	)	$	3,352
Percentage of total	1		%	119		%	9		%	(29		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	(1		)%	2		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

	December 31, 2016
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury securities	$	—		$	1,730		$	—		$	—		$	1,730
U.S. government-sponsored agency securities	—			73			—			—			73
State and municipal securities	—			18			—			—			18
Commercial paper	—			1			—			—			1
Other sovereign government obligations	—			16			—			—			16
Corporate bonds	—			841			—			—			841
Asset-backed securities	—			106			—			—			106
Mortgage-backed securities	—			5,221			—			—			5,221
Equities	85			—			—			—			85
Interest rate derivative contracts	7			1,065			2			(343		)	731
Commodity derivative contracts	—			144			1			(106		)	39
Foreign exchange derivative contracts	1			215			1			(138		)	79
Equity derivative contracts	1			—			164			(163		)	2
Total trading account assets	94			9,430			168			(750		)	8,942
Securities available for sale:
U.S. Treasury	—			2,505			—			—			2,505
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			6,695			—			—			6,695
Privately issued	—			327			—			—			327
Privately issued - commercial mortgage-backed securities	—			664			—			—			664
Collateralized loan obligations	—			2,218			—			—			2,218
Other	—			7			—			—			7
Other debt securities:
Direct bank purchase bonds	—			—			1,613			—			1,613
Other	—			82			25			—			107
Equity securities	5			—			—			—			5
Total securities available for sale	5			12,498			1,638			—			14,141
Other assets:
Mortgage servicing rights	—			—			23			—			23
Interest rate hedging contracts	—			22			—			(20		)	2
Other derivative contracts	—			2			1			—			3
Total other assets	—			24			24			(20		)	28
Total assets	$	99		$	21,952		$	1,830		$	(770	)	$	23,111
Percentage of total	—		%	95		%	8		%	(3		)%	100		%
Percentage of total Company assets	—		%	15		%	1		%	(1		)%	15		%
Liabilities
Trading account liabilities:
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	1,973		$	—		$	—		$	1,973
Other sovereign government obligations	—			11			—			—			11
Corporate bonds	—			298			—			—			298
Equities	47			—			—			—			47
Trading derivatives:
Interest rate derivative contracts	1			987			—			(718		)	270
Commodity derivative contracts	—			111			1			(68		)	44
Foreign exchange derivative contracts	1			129			1			(33		)	98
Equity derivative contracts	—			—			164			—			164
Total trading account liabilities	49			3,509			166			(819		)	2,905
Other liabilities:
FDIC clawback liability	—			—			115			—			115
Interest rate hedging contracts	—			199			—			(199		)	—
Other derivative contracts	—			84			6			(29		)	61
Total other liabilities	—			283			121			(228		)	176
Total liabilities	$	49		$	3,792		$	287		$	(1,047	)	$	3,081
Percentage of total	2		%	123		%	9		%	(34		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	(1		)%	2		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 and 2016. Level 3 available for sale securities at March 31, 2017 and 2016 primarily consist of direct bank purchase bonds. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period.

	For the Three Months Ended
	March 31, 2017														March 31, 2016
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities			Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	168		$	1,638		$	24	$	(166	)	$	(121	)	$	228		$	1,603		$	1	$	(223	)	$	(114	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	30			—			—		(28		)	2			(18		)	—			1		17			(2		)
Included in other comprehensive income	—			3			—		—			—			—			(2		)	—		—			—
Purchases/additions	—			1			11		—			—			—			78			—		—			—
Sales	—			—			—		—			—			—			—			—		—			—
Settlements	(26		)	(73		)	—		26			—			(21		)	(66		)	—		19			—
Transfers in (out) of level 3	—			—			—		—			—			—			—			13		—			—
Asset (liability) balance, end of period	$	172		$	1,569		$	35	$	(168	)	$	(119	)	$	189		$	1,613		$	15	$	(187	)	$	(116	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	30		$	—		$	—	$	(28	)	$	2		$	(18	)	$	—		$	1	$	17		$	(2	)

The following table presents information about significant unobservable inputs related to the Company’s significant Level 3 assets and liabilities at March 31, 2017.

	March 31, 2017
(Dollars in millions)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input(s)	Range of Inputs		Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,543	Return on equity	Market-required return on capital	8.0 - 10.0	%	9.7	%
				Probability of default	0.0 - 25.0	%	0.3	%
				Loss severity	10.0 - 60.0	%	28.5	%

The direct bank purchase bonds use a return on equity valuation technique. This technique uses significant unobservable inputs such as market-required return on capital, probability of default and loss severity. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement.

Fair Value Measurement on a Nonrecurring Basis

Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2017 and 2016 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment.

	March 31, 2017								Gain (Loss) For the Three Months Ended March 31, 2017
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	139	$	—	$	—	$	139	$	(16	)
Other assets:
Software	—		—		—		—		(3		)
Loans held for sale	15		—		—		15		(2		)
Renewable energy investment	9		—		—		9		2
Total	$	163	$	—	$	—	$	163	$	(19	)

	March 31, 2016								Gain (Loss) For the Three Months Ended March 31, 2016
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	375	$	—	$	—	$	375	$	(127	)
Premises and equipment	—		—		—		—		(4		)
Other assets:
Loans held for sale	5		—		—		5		(3		)
OREO	2		—		—		2		(1		)
Private equity investments	10		—		—		10		(12		)
Intangible assets	—		—		—		—		(1		)
Total	$	392	$	—	$	—	$	392	$	(148	)

Loans include individually impaired loans that are measured based on the fair value of the underlying collateral or the fair value of the loan. The fair value of impaired loans was determined based on appraised values of the underlying collateral or market pricing for the loan, adjusted for management judgment, as of the measurement date. The fair value of OREO was primarily based on independent appraisals. The fair value of private equity investments and renewable energy investments was determined using a discounted cash flow analysis and market pricing, adjusted for management judgment, as of the measurement date. The fair value of software, premises and equipment, and intangible assets was determined using appraised values and market pricing, adjusted for management judgment, as of the measurement date.

Fair Value of Financial Instruments Disclosures

The tables below present the carrying amount and estimated fair value of certain financial instruments, classified by valuation hierarchy level as of March 31, 2017 and as of December 31, 2016:

	March 31, 2017
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	4,827	$	4,827	$	4,827	$	—	$	—
Securities borrowed or purchased under resale agreements	19,992		19,992		—		19,992		—
Securities held to maturity	10,374		10,348		—		10,348		—
Loans held for investment (1)	76,105		77,234		—		—		77,234
Liabilities
Deposits	$	86,533	$	86,519	$	—	$	86,519	$	—
Commercial paper and other short-term borrowings	3,487		3,487		—		3,487		—
Securities loaned or sold under repurchase agreements	25,079		25,079		—		25,079		—
Long-term debt	11,333		11,348		—		11,348		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	202	$	202	$	—	$	—	$	202

(1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

	December 31, 2016
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	5,753	$	5,753	$	5,753	$	—	$	—
Securities borrowed or purchased under resale agreements	19,747		19,747		—		19,747		—
Securities held to maturity	10,337		10,316		—		10,316		—
Loans held for investment (1)	75,112		76,257		—		—		76,257
Liabilities
Deposits	$	86,947	$	86,930	$	—	$	86,930	$	—
Commercial paper and other short-term borrowings	2,360		2,360		—		2,360		—
Securities loaned or sold under repurchase agreements	24,616		24,616		—		24,616		—
Long-term debt	11,410		11,411		—		11,411		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	221	$	221	$	—	$	—	$	221

(1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

For further information on methodologies for approximating fair values, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K.

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Derivative Instruments and Other Financial Instruments Used For Hedging

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Other Financial Instruments Used For Hedging

Derivative Instruments and Other Financial Instruments Used For Hedging

The Company enters into certain derivative and other financial instruments primarily to assist customers with their risk management objectives and to manage the Company’s exposure to interest rate risk. When entering into derivatives on behalf of customers, the Company generally acts as a financial intermediary by offsetting a significant portion of the market risk for these derivatives with third parties. The Company may also enter into derivatives for other risk management purposes. All derivative instruments are recognized as assets or liabilities on the consolidated balance sheets at fair value.

Counterparty credit risk is inherent in derivative instruments. In order to reduce its exposure to counterparty credit risk, the Company utilizes credit approvals, limits, monitoring procedures and master netting and credit support annex agreements. Additionally, the Company considers counterparty credit quality and the creditworthiness of the Company in estimating the fair value of derivative instruments.

The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of March 31, 2017 and December 31, 2016, respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively.

	March 31, 2017						December 31, 2016
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
(Dollars in millions)	Amount		Derivatives		Derivatives		Amount		Derivatives		Derivatives
Cash flow hedges
Interest rate contracts	$	13,244	$	6	$	230	$	15,459	$	19	$	199
Fair value hedges
Interest rate contracts	500		1		—		500		3		—
Not designated as hedging instruments:
Trading
Interest rate contracts	145,724		990		925		149,229		1,074		988
Commodity contracts	2,462		133		104		2,825		145		112
Foreign exchange contracts	5,756		187		101		5,981		217		131
Equity contracts	1,995		168		167		2,385		165		164
Other contracts	21		—		—		4		—		—
Total Trading	155,958		1,478		1,297		160,424		1,601		1,395
Other risk management	1,003		17		6		1,045		3		90
Total derivative instruments	$	170,705	$	1,502	$	1,533	$	177,428	$	1,626	$	1,684

We recognized net gains of $4 million and net losses of $2 million on other risk management derivatives for the three months ended March 31, 2017 and 2016, respectively, which are included in other noninterest income.

Derivatives Designated and Qualifying as Hedging Instruments

The Company uses interest rate derivatives to manage the financial impact on the Company from changes in market interest rates. These instruments are used to manage interest rate risk relating to specified groups of assets and liabilities, primarily LIBOR-based commercial loans and debt issuances. Derivatives that qualify for hedge accounting are designated as either fair value or cash flow hedges.

Cash Flow Hedges

The Company uses interest rate swaps to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans, and to a lesser extent, to hedge interest rate risk on rollover debt. 

The Company used interest rate swaps with a notional amount of $13.0 billion at March 31, 2017 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans. To the extent effective, payments received or paid under the swap contract offset fluctuations in interest income on loans caused by changes in the relevant LIBOR index. The Company used interest rate swaps with a notional amount of $294 million at March 31, 2017 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed short-term borrowings. At March 31, 2017, the weighted average remaining life of the active cash flow hedges was 3.84 years.

For cash flow hedges, the effective portion of the gain or loss on the hedging instruments is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged cash flows are recognized in net interest income. Gains and losses representing hedge ineffectiveness are recognized in noninterest expense in the period in which they arise. At March 31, 2017, the Company expects to reclassify approximately $47 million of income from AOCI to net interest income during the twelve months ending March 31, 2018. This amount could differ from amounts actually realized due to changes in interest rates, hedge terminations and the addition of other hedges subsequent to March 31, 2017.

The following tables present the amount and location of the net gains and losses recorded in the Company’s consolidated statements of income and changes in stockholder’s equity for derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016:

	Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion)						Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					(Gain) Loss Recognized in Income on Derivative Instruments (Ineffective Portion)
	For the Three Months Ended March 31,						For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Dollars in millions)	2017			2016		Location	2017		2016		Location	2017		2016
Derivatives in cash flow hedging relationships
						Interest income	$	29	$	42
Interest rate contracts	$	(19	)	$	261	Interest expense	—		—		Noninterest expense	$	2	$	1
Total	$	(19	)	$	261		$	29	$	42		$	2	$	1

Fair Value Hedges

The Company engages in an interest rate hedging strategy in which one or more interest rate swaps are associated with a specified interest bearing liability, in order to convert the liability from a fixed rate to a floating rate instrument. This strategy mitigates the changes in fair value of the hedged liability caused by changes in the designated benchmark interest rate, U.S. dollar LIBOR.

For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. The change in the fair value of the hedged item and the hedging instrument, to the extent completely effective, offsets with no impact on earnings.

The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the three months ended March 31, 2017 and 2016, respectively:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Derivative			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt	$	(2	)	$	1	$	(1	)
Total	$	(2	)	$	1	$	(1	)

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Derivative		Hedged Item			Hedge Ineffectiveness
Interest rate risk on long-term debt	$	7	$	(7	)	$	—
Total	$	7	$	(7	)	$	—

Derivatives Not Designated as Hedging Instruments

Trading Derivatives

Derivative instruments classified as trading are primarily derivatives entered into as an accommodation for customers. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities. The majority of the Company's derivative transactions for customers were essentially offset by contracts with third parties that reduce or eliminate market risk exposures.

The Company offers market-linked CDs, which allow the customer to earn the higher of either a minimum fixed rate of interest or a return tied to either equity, commodity, or currency indices. The Company offsets its exposure to the embedded derivative contained in market-linked CDs with a matched over-the-counter option. Both the embedded derivative (when bifurcated) and hedge options are recorded at fair value with the realized and unrealized changes in fair value recorded in noninterest income within trading account activities.

The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the three months ended March 31, 2017 and 2016:

	Gain or (Loss) Recognized in Income on Derivative Instruments
	For the Three Months Ended
(Dollars in millions)	March 31, 2017			March 31, 2016
Trading derivatives:
Interest rate contracts	$	(22	)	$	(9	)
Foreign exchange contracts	10			9
Total	$	(12	)	$	—

Offsetting Assets and Liabilities

The Company primarily enters into derivative contracts and repurchase agreements with counterparties utilizing a standard International Swaps and Derivatives Association Master Agreements and Master Repurchase Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. For additional information related to offsetting of financial assets and liabilities, refer to Note 5 to these consolidated financial statements.

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component for the three months ended March 31, 2017 and 2016:

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Three Months Ended March 31, 2017
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(19	)	$	7		$	(12	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(29		)	11			(18		)
Net change	(48		)	18			(30		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	56			(23		)	33
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(2		)	1			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	5			(2		)	3
Net change	59			(24		)	35
Foreign currency translation adjustment	1			—			1
Pension and other benefits:
Amortization of prior service credit (1)	(12		)	5			(7		)
Recognized net actuarial (gain) loss(1)	23			(9		)	14
Net change	11			(4		)	7
Net change in AOCI	$	23		$	(10	)	$	13

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Three Months Ended March 31, 2016
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	261		$	(103	)	$	158
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(42		)	16			(26		)
Net change	219			(87		)	132
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	157			(62		)	95
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(13		)	5			(8		)
Amortization of net unrealized (gains) losses on held to maturity securities	5			(2		)	3
Net change	149			(59		)	90
Foreign currency translation adjustment	7			(3		)	4
Pension and other benefits:
Amortization of prior service credit (1)	(6		)	3			(3		)
Recognized net actuarial (gain) loss(1)	22			(9		)	13
Net change	16			(6		)	10
Other	(2		)	—			(2		)
Net change in AOCI	$	389		$	(155	)	$	234

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.

The following tables present the change in accumulated other comprehensive loss balances:

For the Three Months Ended March 31, 2016 and 2017:
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Securities			Foreign Currency Translation Adjustment			Pension and Other Postretirement Benefits Adjustment			Other			Accumulated Other Comprehensive Loss
(Dollars in millions)
Balance December 31, 2015	$	38		$	(152	)	$	(24	)	$	(612	)	$	—		$	(750	)
Other comprehensive income (loss) before reclassifications	158			98			4			—			—			260
Amounts reclassified from AOCI	(26		)	(8		)	—			10			(2		)	(26		)
Balance, March 31, 2016	$	170		$	(62	)	$	(20	)	$	(602	)	$	(2	)	$	(516	)
Balance, December 31, 2016	$	(77	)	$	(208	)	$	(22	)	$	(589	)	$	—		$	(896	)
Other comprehensive income (loss) before reclassifications	(12		)	36			1			—			—			25
Amounts reclassified from AOCI	(18		)	(1		)	—			7			—			(12		)
Balance, March 31, 2017	$	(107	)	$	(173	)	$	(21	)	$	(582	)	$	—		$	(883	)

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Employee Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Employee Pension and Other Postretirement Benefits

Employee Pension and Other Postretirement Benefits

The following table summarizes the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016.

	Pension Benefits						Other Postretirement Benefits						Superannuation, SERP and ESBP
	For the Three Months Ended   March 31,						For the Three Months Ended   March 31,						For the Three Months Ended   March 31,
(Dollars in millions)	2017			2016			2017			2016			2017		2016
Components of net periodic benefit cost:
Service cost	$	19		$	23		$	2		$	2		$	—	$	1
Interest cost	25			26			2			3			1		—
Expected return on plan assets	(64		)	(60		)	(5		)	(5		)	—		—
Amortization of prior service credit	(7		)	(4		)	(5		)	(2		)	—		—
Recognized net actuarial loss	19			19			3			2			1		1
Total net periodic benefit cost	$	(8	)	$	4		$	(3	)	$	—		$	2	$	2

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Commitments, Contingencies and Guarantees

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Guarantees

Commitments, Contingencies and Guarantees

The following table summarizes the Company's commitments:

(Dollars in millions)	March 31, 2017
Commitments to extend credit	$	30,976
Issued standby and commercial letters of credit	5,770
Commitments to enter into forward-starting resale agreements	502
Other commitments	1,605

Commitments to extend credit are legally binding agreements to lend to a customer provided there are no violations of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit are generally contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate foreign or domestic trade transactions. Additionally, the Company enters into risk participations in bankers' acceptances wherein a fee is received to guarantee a portion of the credit risk on an acceptance of another bank. The majority of these types of commitments have terms of 1 year or less. At March 31, 2017, the carrying amount of the Company's risk participations in bankers' acceptances and standby and commercial letters of credit totaled $3 million. Estimated exposure to loss related to these commitments is covered by the allowance for losses on unfunded commitments. The carrying amounts of the standby and commercial letters of credit and the allowance for losses on unfunded credit commitments are included in other liabilities on the consolidated balance sheet.

The credit risk involved in issuing loan commitments and standby and commercial letters of credit is essentially the same as that involved in extending loans to customers and is represented by the contractual amount of these instruments. Collateral may be obtained based on management's credit assessment of the customer.

Other commitments include collateralized financing activities, commitments to fund principal investments, other securities, and residual value guarantees.

The Company has three committed facilities to provide collateralized financing to third parties, up to an aggregate of $1.4 billion. One of these facilities is shared with an affiliate with an aggregate commitment up to $250 million. At March 31, 2017, the facilities were not drawn down. For the three months ended March 31, 2017, commitment fees were nominal.

Principal investments include direct investments in private and public companies. The Company issues commitments to provide equity and mezzanine capital financing to private and public companies through direct investments. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle. This cycle, the period over which privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, can vary based on overall market conditions as well as the nature and type of industry in which the companies operate.

The Company occasionally enters into financial guarantee contracts where a premium is received from another financial institution counterparty to guarantee a portion of the credit risk on interest rate swap contracts entered into between the financial institution and its customer. The Company becomes liable to pay the financial institution only if the financial institution is unable to collect amounts owed to them by their customer. As of March 31, 2017, the current exposure to loss under these contracts totaled $13 million, and the maximum potential exposure to loss in the future was estimated at $42 million.

The Company is subject to various pending and threatened legal actions that arise in the normal course of business. The Company maintains liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. Management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity.

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Business Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has five reportable segments: Regional Bank, U.S. Wholesale Banking, Transaction Banking, Investment Banking & Markets and MUFG Securities Americas Inc. Below is a detailed description of these reportable segments.

Regional Bank

The Regional Bank provides banking products and services to individual and business customers in California, Washington and Oregon through five major business lines.

Consumer Banking serves consumers and small businesses through 352 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. Products and services include checking and deposit accounts; residential mortgage loans; consumer loans; home equity lines of credit; credit cards; bill and loan payment services; and merchant services.

Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues up to $1 billion. Through partnerships with other areas of the Bank, Commercial Banking clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Real Estate Industries provides financing solutions for existing properties and construction projects to professional real estate developers. Property types supported include apartment, office, retail, industrial and single-family residential on the West Coast and in select metropolitan areas across the country. Real Estate Industries also makes tax credit investments in affordable housing projects through its Community Development Finance unit. Through partnerships with other areas of the bank, Real Estate Industries clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services.

Wealth Markets serves corporate, institutional, non-profit and individual clients. Capabilities include Wealth Planning / Trust & Estate Services; Investment Management through HighMark Capital Management, Inc., an SEC-registered investment advisory firm wholly-owned by the bank; Brokerage through UnionBanc Investment Services, LLC, an SEC-registered broker-dealer/investment advisory firm wholly-owned by the bank; and Private Wealth Management.

PurePoint Financial serves consumers through a national deposit platform offering savings accounts and CD products to customers through an online platform with services provided through a call center and a network of financial centers in Florida, Illinois and Texas.

U.S. Wholesale Banking

U.S. Wholesale Banking provides commercial lending products, including commercial loans, lines of credit and project financing, to corporate customers with revenues generally greater than $1 billion. The segment 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). By working with the Company's other segments, U.S. Wholesale Banking offers its customers a range of noncredit services, which include global treasury management, capital market solutions, and various foreign exchange, interest rate risk and commodity risk management products.

Transaction Banking

Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and institutional trust and custody, to the Company's customers. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations.

Investment Banking & Markets

Investment Banking & Markets, which includes Global Capital Markets of the Americas, works with the Company's other segments to provide customers structured credit services, including project finance, leasing and equipment finance, commercial finance, funds finance and securitizations. Investment Banking & Markets also provides capital markets solutions, including syndicated loans, equity and debt underwriting, tax equity and merchant banking investments; risk management solutions, including foreign exchange, interest rate and energy risk management solutions; and facilitates merchant and investment banking-related transactions.

MUFG Securities Americas Inc.

MUSA is MUAH's broker-dealer subsidiary which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equity securities transactions.

Other

The Company generally applies a "market view" perspective in measuring the business segments. The market view is a measurement of customer markets aggregated to show all revenues generated and expenses incurred from all products and services sold to those customers regardless of where product areas organizationally report. Therefore, revenues and expenses are included in both the business segment that provides the service and the business segment that manages the customer relationship. The duplicative results from this internal management accounting view are eliminated in "Other." Certain of the transferred IHC entities are not measured using a "market view" perspective.

"Other" includes the Asian Corporate Banking segment and Corporate Treasury. The Asian Corporate Banking segment offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan and other Asian countries. Corporate Treasury is responsible for ALM, wholesale funding and the ALM investment and derivatives hedging portfolios. These treasury management activities are carried out to manage the net interest rate and liquidity risks of the Company's balance sheet and to manage those risks within the guidelines established by ALCO. For additional discussion regarding these risk management activities, see Part I, Item 3. “Quantitative and Qualitative Disclosures About Market Risk” in this Form 10-Q.

Additionally, "Other" is comprised of certain corporate activities of the Company; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; fees from affiliates and noninterest expenses associated with BTMU's U.S. branch banking operations; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and FDIC covered assets.

The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Beginning with the second quarter of 2016, the Company revised its methodology for allocating certain indirect costs to the segments. Beginning with the third quarter of 2016, the Company revised its funds transfer pricing methodology related to certain deposits. Prior period results have been updated to reflect these changes in methodology. Certain of the transferred IHC entities are not measured using management accounting methodologies.

As of and for the Three Months Ended March 31, 2017:
(Dollars in millions)	Regional Bank		U.S. Wholesale Banking		Transaction Banking		Investment Banking & Markets			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations - Market View (1)
Net interest income (expense)	$	498	$	87	$	137	$	42		$	59	$	(28	)	$	795
Noninterest income (expense)	112		104		39		79			84		70			488
Total revenue	610		191		176		121			143		42			1,283
Noninterest expense	502		53		111		59			105		176			1,006
(Reversal of) provision for credit losses	2		—		—		(10		)	—		(22		)	(30		)
Income (loss) before income taxes and including noncontrolling interests	106		138		65		72			38		(112		)	307
Income tax expense (benefit)	23		55		26		(3		)	15		(33		)	83
Net income (loss) including noncontrolling interests	83		83		39		75			23		(79		)	224
Deduct: net loss from noncontrolling interests	—		—		—		—			—		5			5
Net income (loss) attributable to MUAH	$	83	$	83	$	39	$	75		$	23	$	(74	)	$	229
Total assets, end of period	$	63,950	$	11,179	$	2,094	$	13,778		$	30,472	$	28,205		$	149,678

(1) The transferred IHC entities are not measured using a "market view" perspective.

As of and for the Three Months Ended March 31, 2016:
(Dollars in millions)	Regional Bank			U.S. Wholesale Banking			Transaction Banking		Investment Banking & Markets			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations - Market View (1)
Net interest income (expense)	$	475		$	107		$	113	$	56		$	25	$	(52	)	$	724
Noninterest income (expense)	114			29			46		47			71		167			474
Total revenue	589			136			159		103			96		115			1,198
Noninterest expense	441			49			120		58			86		214			968
(Reversal of) provision for credit losses	(2		)	130			2		31			—		1			162
Income (loss) before income taxes and including noncontrolling interests	150			(43		)	37		14			10		(100		)	68
Income tax expense (benefit)	42			(17		)	14		(19		)	4		(6		)	18
Net income (loss) including noncontrolling interests	108			(26		)	23		33			6		(94		)	50
Deduct: net loss from noncontrolling interests	—			—			—		1			—		11			12
Net income (loss) attributable to MUAH	$	108		$	(26	)	$	23	$	34		$	6	$	(83	)	$	62
Total assets, end of period	$	62,190		$	15,173		$	2,522	$	14,556		$	32,961	$	29,152		$	156,554

(1) The transferred IHC entities are not measured using a "market view" perspective.

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Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

MUAH is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. (formerly Mitsubishi UFJ Securities (USA), Inc.). It is owned by BTMU and MUFG. BTMU is a wholly-owned subsidiary of MUFG.

On July 1, 2016, in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential standards, MUAH was designated the U.S. Intermediate Holding Company of MUFG.

The Company provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The Bank and BTMU participate in a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided.

In addition to the above, the Company conducts transactions with affiliates which include BTMU, MUFG and other entities which are directly or indirectly owned by MUFG. The transactions include capital market transactions, facilitating securities transactions, secured financing transactions, advisory services, clearing and operational support. Under services level agreements the Company provides services to and receives services from various affiliates. The Company also has referral agreements with its affiliates and pays referral fees from investment banking revenue earned.

Related party transactions reflect market-based pricing. These transactions are subject to federal and state statutory and regulatory restrictions and limitations.

The tables and discussion below represent the more significant related party balances and income (expenses) generated by related party transactions.

As of March 31, 2017 and December 31, 2016, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	March 31, 2017		December 31, 2016
Assets:
Cash and cash equivalents	$	105	$	102
Securities borrowed or purchased under resale agreements	2,386		2,765
Other assets	190		161
Liabilities:
Deposits	$	661	$	623
Securities loaned or sold under repurchase agreements	597		385
Commercial paper and other short-term borrowings	1,196		1,372
Long-term debt	5,966		6,042
Other liabilities	124		63

Revenue and expenses with affiliates for the three months ended March 31, 2017 and 2016 were as follows:

	For the Three Months Ended   March 31,
(Dollars in millions)	2017		2016
Interest Income
Securities borrowed or purchased under resale agreements	$	7	$	6
Interest Expense
Commercial paper and other short-term borrowings	2		6
Long-term debt	28		7
Securities loaned or sold under repurchase agreements	1		—
Noninterest Income
Fees from affiliates	219		212
Other, net	2		—
Noninterest Expense
Other	25		24

At March 31, 2017, the Company had $1.9 billion in uncommitted, unsecured borrowing facilities and $475 million in uncommitted, secured borrowing facilities with affiliates. See Note 6 and Note 7 to these consolidated financial statements for more information on debt due to affiliates.

At March 31, 2017 and December 31, 2016, the Company had derivative contracts with affiliates totaling $1.5 billion and $1.6 billion, respectively, in notional balances, with $76 million and $72 million in net unrealized gains at March 31, 2017 and December 31, 2016, respectively.

An affiliate extends guarantees on certain liabilities arising out of or in connection with agreements with certain counterparties. At March 31, 2017, the guaranteed balance was $1 million. There was no amount guaranteed at December 31, 2016. The guarantee fee was nominal for the three months ended March 31, 2017, and 2016.

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Summary of Significant Accounting Policies and Nature of Operations (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

The unaudited Consolidated Financial Statements of MUFG Americas Holdings Corporation, its subsidiaries, and its consolidated variable interest entities (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the SEC. However, they do not include all of the disclosures necessary for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included.

Use of Estimates

The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management’s expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company’s results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company’s financial statements include, but are not limited to, the allowance for credit losses (Note 3), goodwill impairment, fair value of financial instruments (Note 8), hedge accounting (Note 9), pension accounting (Note 11), income taxes, and transfer pricing.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the ASU requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to interim and annual periods beginning on January 1, 2018, with early adoption permitted in 2017. The Company plans to apply the modified retrospective method upon adoption on January 1, 2018. As part of our implementation progress to date, we have completed the impact assessment phase and are evaluating potential changes to processes and controls. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends the accounting, presentation, and disclosure requirements for certain financial instruments. The ASU requires that all equity investments be recorded at fair value through net income (other than those accounted for under equity method or result in consolidation of the investee); however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability under the fair value option. The ASU also clarifies that an entity must evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. In addition, the ASU amends the presentation and disclosure requirements for financial instruments and now requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted for the amendments to the accounting for financial liabilities under the fair value option. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases, which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases.  The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases.  The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. The Company plans to adopt the ASU on January 1, 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. The Company has recently begun the planning phase for this project and management is in the initial stage of policy development and issue identification. Management is currently evaluating technology solutions and assessing accounting for the current lease portfolio under the new ASU.

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The ASU amends ASU 2014-09, Revenue from Contracts with Customers, with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. The ASU is effective upon the adoption of ASU 2014-09, which is effective for periods beginning January 1, 2018, with early adoption permitted in 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which provides new guidance on the accounting for credit losses for instruments that are within its scope. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. In the second quarter the Company plans to begin a current state gap analysis, which will be followed by collecting business and data requirements to support the project planning phase of the implementation.

Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, to address diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company's statement of cash flows.

Income Tax Consequences of Intra-Entity Asset Transfers

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity assets other than inventory. The ASU will require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect adoption of this guidance to significantly impact the Company's financial position and results of operations.

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, Restricted Cash, to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and the amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective for interim and annual periods beginning on January 1, 2018 using a retrospective transition method. Early adoption is permitted. Management does not expect the adoption of this guidance to have a significant impact on the Company's statement of cash flows.

Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which specifies when a set of assets and activities constitutes a business. The ASU adds a “screen” to determine when a set is not a business, thus reducing the number of transactions deemed businesses. Specifically, if the fair value of the gross assets acquired is concentrated in a single identifiable asset (or a group of similar identifiable assets), the set is not deemed a business. Otherwise, to be considered a business, a set must include at least one input and a substantive process that together significantly contribute to the ability to create outputs.  Although outputs are not required to be a business, the ASU narrows the definition of an output and limits the instances where sets that lack outputs are deemed businesses. The ASU is effective for interim and annual periods prospectively beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

Amendments to SEC Paragraphs Pursuant to Staff Announcements at EITF Meetings

In January 2017, the FASB issued ASU 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments clarify the SEC staff’s expectations about the extent of disclosures registrants should make about the effects of ASU 2014-09, Revenue from Contracts with Customers, ASU 2016-02, Leases, and ASU 2016-13, Measurement of Credit Losses on Financial Instruments, particularly where the registrant cannot reasonably estimate the ASU’s anticipated impact on the financial statements. The amendments also clarify the SEC staff’s view that the use of the proportional amortization method must be consistently applied and it may not be extended, by analogy, to other investments that are not investments in qualified affordable housing projects. The ASU is effective upon issuance. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Early adoption is permitted for any impairment tests performed after January 1, 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations.

Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of

Nonfinancial Assets

In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets (issued as part of ASU 2014-09), and provide guidance on partial sales of nonfinancial assets. The ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an “in substance nonfinancial asset” is within the scope of ASC 610-20. The ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASU is effective upon the adoption of ASU 2014-09, which the Company plans to adopt beginning January 1, 2018. It allows an entity to use either a retrospective or modified retrospective approach. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans.  The ASU  also now mandates that only the service cost component of net benefit cost is eligible for capitalization on certain internally produced assets. The ASU is effective for interim and annual periods beginning January 1, 2018, with retrospective application for the new income statement presentation requirements and prospective application for the new capitalization requirement. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations.

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Securities (Tables)

3 Months Ended

Mar. 31, 2017

Securities

Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities

At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.

	March 31, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	2,920	$	2	$	109	$	2,813
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	7,474		5		101		7,378
Privately issued	431		1		6		426
Privately issued - commercial mortgage-backed securities	664		5		6		663
Collateralized loan obligations	1,985		13		1		1,997
Other	7		—		—		7
Asset Liability Management securities	13,481		26		223		13,284
Other debt securities:
Direct bank purchase bonds	1,528		39		24		1,543
Other	94		—		1		93
Equity securities	5		—		—		5
Total securities available for sale	$	15,108	$	65	$	248	$	14,925

	December 31, 2016
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	2,625	$	1	$	121	$	2,505
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	6,814		3		122		6,695
Privately issued	333		1		7		327
Privately issued - commercial mortgage-backed securities	666		4		6		664
Collateralized loan obligations	2,219		4		5		2,218
Other	7		—		—		7
Asset Liability Management securities	12,664		13		261		12,416
Other debt securities:
Direct bank purchase bonds	1,601		41		29		1,613
Other	108		—		1		107
Equity securities	5		—		—		5
Total securities available for sale	$	14,378	$	54	$	291	$	14,141

Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses

The gross realized gains and losses from sales of available for sale securities for the three months endedMarch 31, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.

	For the Three Months Ended March 31,
(Dollars in millions)	2017		2016
Gross realized gains	$	2	$	13
Gross realized losses	—		—

Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values

At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.

	March 31, 2017
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	493	$	—	$	—	$	493	$	4	$	—	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,342		2		38		8,306		32		98		8,240
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,636		—		61		1,575		43		7		1,611
Total securities held to maturity	$	10,471	$	2	$	99	$	10,374	$	79	$	105	$	10,348

	December 31, 2016
			Recognized in OCI						Not Recognized in OCI
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	492	$	—	$	—	$	492	$	5	$	—	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,301		3		41		8,263		34		96		8,201
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,645		—		63		1,582		43		7		1,618
Total securities held to maturity	$	10,438	$	3	$	104	$	10,337	$	82	$	103	$	10,316

Securities Available for Sale

Securities

Securities in Unrealized Loss Position

The Company’s securities available for sale with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more.

	March 31, 2017
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	2,270	$	109	$	—	$	—	$	2,270	$	109
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,567		93		606		8		6,173		101
Privately issued	249		5		26		1		275		6
Privately issued - commercial mortgage-backed securities	371		6		11		—		382		6
Collateralized loan obligations	168		—		129		1		297		1
Asset Liability Management securities	8,625		213		772		10		9,397		223
Other debt securities:
Direct bank purchase bonds	193		6		539		18		732		24
Other	91		1		5		—		96		1
Total securities available for sale	$	8,909	$	220	$	1,316	$	28	$	10,225	$	248

	December 31, 2016
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
U.S. Treasury	$	2,257	$	121	$	—	$	—	$	2,257	$	121
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,501		113		667		9		6,168		122
Privately issued	249		6		29		1		278		7
Privately issued - commercial mortgage-backed securities	415		6		11		—		426		6
Collateralized loan obligations	75		—		1,077		5		1,152		5
Other	—		—		1		—		1		—
Asset Liability Management securities	8,497		246		1,785		15		10,282		261
Other debt securities:
Direct bank purchase bonds	386		12		499		17		885		29
Other	36		1		—		—		36		1
Equity securities	—		—		5		—		5		—
Total securities available for sale	$	8,919	$	259	$	2,289	$	32	$	11,208	$	291

Debt Securities by Contractual Maturity

The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	March 31, 2017
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
U.S. Treasury	$	—	$	393	$	2,420	$	—	$	2,813
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	—		9		301		7,068		7,378
Privately issued	—		1		—		425		426
Privately issued - commercial mortgage-backed securities	—		—		—		663		663
Collateralized loan obligations	—		—		1,020		977		1,997
Other	1		1		5		—		7
Asset Liability Management securities	1		404		3,746		9,133		13,284
Other debt securities:
Direct bank purchase bonds	4		428		719		392		1,543
Other	—		67		—		26		93
Total debt securities available for sale	$	5	$	899	$	4,465	$	9,551	$	14,920

Securities Held to Maturity

Securities

Securities in Unrealized Loss Position

The Company’s securities held to maturity with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more.

	March 31, 2017
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	4,977	$	—	$	96	$	1,324	$	38	$	2	$	6,301	$	38	$	98
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	109		—		2		1,445		61		5		1,554		61		7
Total securities held to maturity	$	5,086	$	—	$	98	$	2,769	$	99	$	7	$	7,855	$	99	$	105

	December 31, 2016
	Less than 12 months						12 months or more						Total
			Unrealized Losses						Unrealized Losses						Unrealized Losses
(Dollars in millions)	Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI		Fair Value		Recognized in OCI		Not Recognized in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	4,492	$	—	$	92	$	1,386	$	41	$	4	$	5,878	$	41	$	96
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	111		—		1		1,448		63		6		1,559		63		7
Total securities held to maturity	$	4,603	$	—	$	93	$	2,834	$	104	$	10	$	7,437	$	104	$	103

Debt Securities by Contractual Maturity

The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	March 31, 2017
	Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	493	$	497	$	—	$	—	$	—	$	—	$	493	$	497
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		326		324		7,980		7,916		8,306		8,240
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	299		309		558		581		718		721		1,575		1,611
Total securities held to maturity	$	792	$	806	$	884	$	905	$	8,698	$	8,637	$	10,374	$	10,348

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Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Summary of Loans

The following table provides the outstanding balances of loans at March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017			December 31, 2016
Loans held for investment:
Commercial and industrial	$	25,602		$	25,379
Commercial mortgage	14,468			14,625
Construction	2,040			2,283
Lease financing	1,779			1,819
Total commercial portfolio	43,889			44,106
Residential mortgage	31,162			29,922
Home equity and other consumer loans	3,383			3,523
Total consumer portfolio	34,545			33,445
Total loans held for investment(1)	78,434			77,551
Allowance for loan losses	(570		)	(639		)
Loans held for investment, net	$	77,864		$	76,912

(1) Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Commercial			Consumer			Unallocated		Total
Allowance for loan losses, beginning of period	$	556		$	83		$	—	$	639
(Reversal of) provision for loan losses	(26		)	12			—		(14		)
Other	1			—			—		1
Loans charged-off	(55		)	(11		)	—		(66		)
Recoveries of loans previously charged-off	9			1			—		10
Allowance for loan losses, end of period	$	485		$	85		$	—	$	570

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Commercial			Consumer			Unallocated			Total
Allowance for loan losses, beginning of period	$	653		$	50		$	20		$	723
(Reversal of) provision for loan losses	171			7			(20		)	158
Other	4			—			—			4
Loans charged-off	(8		)	(1		)	—			(9		)
Recoveries of loans previously charged-off	4			1			—			5
Allowance for loan losses, end of period	$	824		$	57		$	—		$	881

Allowance for Loan Losses and Related Loan Balances by Portfolio Segment

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in millions)	Commercial		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	117	$	20	$	137
Collectively evaluated for impairment	368		65		433
Total allowance for loan losses	$	485	$	85	$	570
Loans held for investment:
Individually evaluated for impairment	$	638	$	372	$	1,010
Collectively evaluated for impairment	43,251		34,173		77,424
Total loans held for investment	$	43,889	$	34,545	$	78,434

	December 31, 2016
(Dollars in millions)	Commercial		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	151	$	17	$	168
Collectively evaluated for impairment	405		66		471
Total allowance for loan losses	$	556	$	83	$	639
Loans held for investment:
Individually evaluated for impairment	$	636	$	386	$	1,022
Collectively evaluated for impairment	43,470		33,059		76,529
Total loans held for investment	$	44,106	$	33,445	$	77,551

Summary of Nonaccrual Loans

The following table presents nonaccrual loans as of March 31, 2017 and December 31, 2016:

(Dollars in millions)	March 31, 2017		December 31, 2016
Commercial and industrial	$	400	$	458
Commercial mortgage	33		31
Total commercial portfolio	433		489
Residential mortgage	110		171
Home equity and other consumer loans	26		29
Total consumer portfolio	136		200
Total nonaccrual loans	$	569	$	689
Troubled debt restructured loans that continue to accrue interest	$	336	$	215
Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)	$	301	$	384

Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans

The following tables show an aging of the balance of loans held for investment, by class as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	27,317	$	10	$	54	$	64	$	27,381
Commercial mortgage	14,435		18		15		33		14,468
Construction	2,040		—		—		—		2,040
Total commercial portfolio	43,792		28		69		97		43,889
Residential mortgage	31,012		110		40		150		31,162
Home equity and other consumer loans	3,347		21		15		36		3,383
Total consumer portfolio	34,359		131		55		186		34,545
Total loans held for investment	$	78,151	$	159	$	124	$	283	$	78,434

	December 31, 2016
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	27,085	$	54	$	59	$	113	$	27,198
Commercial mortgage	14,571		37		17		54		14,625
Construction	2,283		—		—		—		2,283
Total commercial portfolio	43,939		91		76		167		44,106
Residential mortgage	29,770		110		42		152		29,922
Home equity and other consumer loans	3,479		27		17		44		3,523
Total consumer portfolio	33,249		137		59		196		33,445
Total loans held for investment	$	77,188	$	228	$	135	$	363	$	77,551

Loans in Commercial Portfolio Segment and Commercial Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Internal Ratings

The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings. The amounts presented reflect unpaid principal balances less charge-offs.

	March 31, 2017
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,708	$	635	$	1,007	$	27,350
Commercial mortgage	14,119		93		237		14,449
Construction	1,862		118		61		2,041
Total commercial portfolio	$	41,689	$	846	$	1,305	$	43,840

	December 31, 2016
			Criticized
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	25,028	$	860	$	1,097	$	26,985
Commercial mortgage	14,152		161		188		14,501
Construction	2,162		121		—		2,283
Total commercial portfolio	$	41,342	$	1,142	$	1,285	$	43,769

Loans in Consumer Portfolio an Purchased credit-impaired loans

The following tables summarize the loans in the consumer portfolio segment, which exclude $10 million and $11 million of loans covered by FDIC loss share agreements, at March 31, 2017 and December 31, 2016, respectively:

	March 31, 2017
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	31,052	$	110	$	31,162
Home equity and other consumer loans	3,357		26		3,383
Total consumer portfolio	$	34,409	$	136	$	34,545

	December 31, 2016
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	29,751	$	171	$	29,922
Home equity and other consumer loans	3,494		29		3,523
Total consumer portfolio	$	33,245	$	200	$	33,445

Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Refreshed FICO Scores and Refreshed LTV ratios

These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	March 31, 2017
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	24,680		$	5,746		$	436		$	30,862
Home equity and other consumer loans	2,248			937			139			3,324
Total consumer portfolio	$	26,928		$	6,683		$	575		$	34,186
Percentage of total	79		%	19		%	2		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	December 31, 2016
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	23,598		$	5,597		$	444		$	29,639
Home equity and other consumer loans	2,372			977			111			3,460
Total consumer portfolio	$	25,970		$	6,574		$	555		$	33,099
Percentage of total	78		%	20		%	2		%	100		%

(1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	March 31, 2017
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	29,721		$	1,090		$	14		$	37		$	30,862
Home equity loans	2,103			219			37			39			2,398
Total consumer portfolio	31,824			1,309			51			76			33,260
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

	December 31, 2016
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	28,547		$	1,030		$	16		$	46		$	29,639
Home equity loans	2,160			206			41			43			2,450
Total consumer portfolio	$	30,707		$	1,236		$	57		$	89		$	32,089
Percentage of total	96		%	4		%	—		%	—		%	100		%

(1) Represents loans for which management was not able to obtain refreshed property values.

Summary of Troubled Debt Restructurings

The following table provides a summary of the Company’s recorded investment in TDRs as of March 31, 2017 and December 31, 2016. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $48 million and $59 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of March 31, 2017 and December 31, 2016, respectively.

(Dollars in millions)	March 31, 2017		December 31, 2016
Commercial and industrial	$	304	$	321
Commercial mortgage	9		9
Construction	61		—
Total commercial portfolio	374		330
Residential mortgage	234		239
Home equity and other consumer loans	29		30
Total consumer portfolio	263		269
Total restructured loans	$	637	$	599

Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings

The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three months ended March 31, 2017 and 2016:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	78	$	78
Commercial mortgage	1		1
Construction	61		61
Total commercial portfolio	140		140
Residential mortgage	4		4
Total consumer portfolio	4		4
Total	$	144	$	144

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	50	$	50
Commercial mortgage	5		5
Total commercial portfolio	55		55
Residential mortgage	4		4
Home equity and other consumer loans	1		1
Total consumer portfolio	5		5
Total	$	60	$	60

(1) Represents the recorded investment in the loan immediately prior to the restructuring event.

(2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

Recorded Investment Amounts of Troubled Debt Restructurings

The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three months ended March 31, 2017 and 2016, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

(Dollars in millions)	For the Three Months Ended March 31, 2017
Commercial and industrial	$	2
Commercial mortgage	1
Total commercial portfolio	3
Residential mortgage	1
Total consumer portfolio	1
Total	$	4

(Dollars in millions)	For the Three Months Ended March 31, 2016
Commercial and industrial	$	1
Total commercial portfolio	1
Residential mortgage	2
Total consumer portfolio	2
Total	$	3

Information about Impaired Loans by Class

The following tables show information about impaired loans by class as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	421	$	94	$	515	$	116	$	514	$	125
Commercial mortgage	54		8		62		1		54		9
Construction	—		61		61		—		—		61
Total commercial portfolio	475		163		638		117		568		195
Residential mortgage	243		72		315		20		257		85
Home equity and other consumer loans	38		19		57		—		40		29
Total consumer portfolio	281		91		372		20		297		114
Total	$	756	$	254	$	1,010	$	137	$	865	$	309

	December 31, 2016
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	505	$	36	$	541	$	150	$	672	$	54
Commercial mortgage	86		9		95		1		8		9
Total commercial portfolio	591		45		636		151		680		63
Residential mortgage	250		75		325		17		295		89
Home equity and other consumer loans	41		20		61		—		11		30
Total consumer portfolio	291		95		386		17		306		119
Total	$	882	$	140	$	1,022	$	168	$	986	$	182

Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	For the Three Months Ended March 31,
	2017				2016
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	491	$	4	$	624	$	2
Commercial mortgage	18		—		18		—
Construction	10		—		—		—
Total commercial portfolio	519		4		642		2
Residential mortgage	237		2		273		2
Home equity and other consumer loans	29		—		31		1
Total consumer portfolio	266		2		304		3
Total	$	785	$	6	$	946	$	5

The following table presents loan transfers from held to investment to held for sale and proceeds from

sales of loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments.

	For the Three Months Ended March 31,
	2017					2016
(Dollars in millions)	Transfers of loans from held for investment to held for sale, net			Proceeds from sale		Transfers of loans from held for investment to held for sale, net			Proceeds from sale
Commercial portfolio	$	234		$	347	$	(81	)	$	49
Consumer portfolio	(4		)	—		—			—
Total	$	230		$	347	$	(81	)	$	49

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2017

Variable Interest Entities

Schedule of assets and liabilities of VIEs

The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the three months endedMarch 31, 2017 and 2016:

	For the Three Months Ended
	March 31, 2017		March 31, 2016
(Dollars in millions)
Losses from LIHC investments included in other noninterest expense	$	2	$	2
Amortization of LIHC investments included in income tax expense	33		30
Tax credits and other tax benefits from LIHC investments included in income tax expense	45		45

Consolidated VIEs

Variable Interest Entities

Schedule of assets and liabilities of VIEs

The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016:

	March 31, 2017
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	106	$	106	$	—	$	—
Leasing investments	622		173		795		54		54
Total consolidated VIEs	$	622	$	279	$	901	$	54	$	54

	December 31, 2016
	Consolidated Assets						Consolidated Liabilities
(Dollars in millions)	Loans Held for Investment, net		Other Assets		Total Assets		Other Liabilities		Total Liabilities
LIHC investments	$	—	$	112	$	112	$	—	$	—
Leasing investments	641		174		815		54		54
Total consolidated VIEs	$	641	$	286	$	927	$	54	$	54

Unconsolidated VIEs

Variable Interest Entities

Schedule of assets and liabilities of VIEs

The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at March 31, 2017 and December 31, 2016. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During the three months endedMarch 31, 2017 and March 31, 2016, the Company had noncash increases in unfunded commitments on LIHC investments of $19 million and $37 million, respectively, included within other liabilities.

	March 31, 2017
	Unconsolidated Assets										Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	25	$	199	$	1,148	$	1,372	$	388	$	388	$	1,372
Leasing investments	1		12		28		1,662		1,703		66		66		1,723
Other investments	—		—		24		25		49		—		—		76
Total unconsolidated VIEs	$	1	$	37	$	251	$	2,835	$	3,124	$	454	$	454	$	3,171

			December 31, 2016
			Unconsolidated Assets								Unconsolidated Liabilities
(Dollars in millions)	Interest Bearing Deposits in Banks		Securities Available for Sale		Loans Held for Investment		Other Assets		Total Assets		Other Liabilities		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	—	$	25	$	168	$	1,164	$	1,357	$	381	$	381	$	1,357
Leasing investments	1		12		47		1,751		1,811		66		66		1,833
Other investments	—		—		24		26		50		—		—		81
Total unconsolidated VIEs	$	1	$	37	$	239	$	2,941	$	3,218	$	447	$	447	$	3,271

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Securities Financing Arrangements (Tables)

3 Months Ended

Mar. 31, 2017

Transfers and Servicing [Abstract]

Schedule of Offsetting Assets

The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016:

	March 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,502	$	787	$	715	$	44	$	2	$	669
Securities borrowed or purchased under resale agreements	31,147		11,155		19,992		19,896		—		96
Total	$	32,649	$	11,942	$	20,707	$	19,940	$	2	$	765
Financial Liabilities:
Derivative liabilities	$	1,533	$	968	$	565	$	170	$	—	$	395
Securities loaned or sold under repurchase agreements	36,235		11,156		25,079		24,470		—		609
Total	$	37,768	$	12,124	$	25,644	$	24,640	$	—	$	1,004

	December 31, 2016
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,626	$	770	$	856	$	20	$	—	$	836
Securities borrowed or purchased under resale agreements	31,386		11,639		19,747		19,657		—		90
Total	$	33,012	$	12,409	$	20,603	$	19,677	$	—	$	926
Financial Liabilities:
Derivative liabilities	$	1,684	$	1,047	$	637	$	176	$	5	$	456
Securities loaned or sold under repurchase agreements	36,255		11,639		24,616		23,812		—		804
Total	$	37,939	$	12,686	$	25,253	$	23,988	$	5	$	1,260

Schedule of Offsetting Liabilities

The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016:

	March 31, 2017
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,502	$	787	$	715	$	44	$	2	$	669
Securities borrowed or purchased under resale agreements	31,147		11,155		19,992		19,896		—		96
Total	$	32,649	$	11,942	$	20,707	$	19,940	$	2	$	765
Financial Liabilities:
Derivative liabilities	$	1,533	$	968	$	565	$	170	$	—	$	395
Securities loaned or sold under repurchase agreements	36,235		11,156		25,079		24,470		—		609
Total	$	37,768	$	12,124	$	25,644	$	24,640	$	—	$	1,004

	December 31, 2016
							Gross Amounts Not Offset in Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets/Liabilities		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Financial Assets:
Derivative assets	$	1,626	$	770	$	856	$	20	$	—	$	836
Securities borrowed or purchased under resale agreements	31,386		11,639		19,747		19,657		—		90
Total	$	33,012	$	12,409	$	20,603	$	19,677	$	—	$	926
Financial Liabilities:
Derivative liabilities	$	1,684	$	1,047	$	637	$	176	$	5	$	456
Securities loaned or sold under repurchase agreements	36,255		11,639		24,616		23,812		—		804
Total	$	37,939	$	12,686	$	25,253	$	23,988	$	5	$	1,260

Secured Borrowings by Contractual Maturity and Class of Collateral Pledged

The following tables present the gross obligations for securities sold under agreements to repurchase, and securities loaned by remaining contractual maturity and class of collateral pledged as of March 31, 2017 and December 31, 2016:

	March 31, 2017
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	10,925	$	1,886	$	677	$	96	$	13,584
U.S. agency securities	30		3		—		—		33
Other sovereign government obligations	7		20		1		—		28
Money market securities	14		24		34		—		72
Asset-backed securities	1		1		28		—		30
Mortgage-backed securities	9,384		3,701		5,372		—		18,457
Corporate bonds	379		824		1,031		—		2,234
Municipal securities	157		54		143		—		354
Equities	362		49		164		—		575
Total	$	21,259	$	6,562	$	7,450	$	96	$	35,367
Securities loaned:
Equities	718		51		99		—		868
Total	$	718	$	51	$	99	$	—	$	868

	December 31, 2016
	Overnight and		Up to		31 - 90		Greater than
(Dollars in millions)	continuous		30 days		days		90 days		Total
Securities sold under agreements to repurchase:
U.S. Treasury securities	$	11,419	$	1,523	$	712	$	316	$	13,970
U.S. agency securities	42		30		—		—		72
Other sovereign government obligations	—		—		16		—		16
Asset-backed securities	20		15		66		—		101
Mortgage-backed securities	8,792		4,450		4,750		—		17,992
Corporate bonds	405		800		909		—		2,114
Municipal securities	74		65		299		—		438
Equities	452		275		164		—		891
Total	$	21,204	$	7,158	$	6,916	$	316	$	35,594
Securities loaned:
Corporate bonds	$	8	$	—	$	—	$	—	$	8
Equities	562		—		91		—		653
Total	$	570	$	—	$	91	$	—	$	661

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Commercial Paper and Other Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2017

Short-term Debt [Abstract]

Summary of Commercial Paper and Other Short-Term Borrowings

The following table is a summary of the Company's commercial paper and other short-term borrowings:

(Dollars in millions)	March 31, 2017		December 31, 2016
Debt issued by MUB
Federal funds purchased, with weighted average interest rates of 0.72% and 0.50% at March 31, 2017 and December 31, 2016, respectively	$	40	$	26
Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively	651		263
Federal Home Loan Bank advances, with a weighted average interest rate of 0.62% and 0.59% at March 31, 2017 and December 31, 2016, respectively	1,600		700
Total debt issued by MUB	2,291		989
Debt issued by other MUAH subsidiaries
Short-term debt due to BTMU, with weighted average interest rates of 1.47% and 0.49% at March 31, 2017 and December 31, 2016, respectively	425		679
Short-term debt due to affiliates, with weighted average interest rates of (0.07)% and (0.04)% at March 31, 2017 and December 31, 2016, respectively	771		692
Total debt issued by other MUAH subsidiaries	1,196		1,371
Total commercial paper and other short-term borrowings	$	3,487	$	2,360

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Summary of Long-Term Debt

The following is a summary of the Company's long-term debt:

(Dollars in millions)	March 31, 2017		December 31, 2016
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016	$	250	$	250
Fixed rate 1.625% notes due February 2018	449		449
Fixed rate 2.25% notes due February 2020	997		997
Fixed rate 3.50% notes due June 2022	397		397
Fixed rate 3.00% notes due February 2025	496		496
Senior debt due to BTMU:
Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017	3,500		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017	21		—
Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016	545		545
Subordinated debt due to BTMU:
Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016	300		300
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016	36		36
Total debt issued by MUAH	6,991		3,470
Debt issued by MUB
Senior debt:
Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016	250		250
Fixed rate 2.125% notes due June 2017	500		500
Fixed rate 2.625% notes due September 2018	999		999
Fixed rate 2.250% notes due May 2019	500		500
Senior debt due to BTMU:
Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016	—		1,000
Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016	—		1,500
Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016	—		1,000
Subordinated debt due to BTMU:
Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016	750		750
Other	61		58
Total debt issued by MUB	3,060		6,557

Debt issued by other MUAH subsidiaries
Senior Debt due to BTMU:
Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016	250		250
Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016	288		384
Subordinated Debt due to Affiliate:
Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016	185		185
Nonrecourse Debt due to BTMU:
Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016	127		127
Nonrecourse Debt:
Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016	38		39
Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016	394		398
Total debt issued by other MUAH subsidiaries	1,282		1,383
Total long-term debt	$	11,333	$	11,410

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Fair Value Measurement and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, by major category and by valuation hierarchy level:

	March 31, 2017
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury securities	$	—		$	1,902		$	—		$	—		$	1,902
U.S. government-sponsored agency securities	—			121			—			—			121
State and municipal securities	—			8			—			—			8
Commercial paper	—			75			—			—			75
Other sovereign government obligations	—			31			—			—			31
Corporate bonds	—			1,273			—			—			1,273
Asset-backed securities	—			183			—			—			183
Mortgage-backed securities	—			4,582			—			—			4,582
Equities	42			—			—			—			42
Interest rate derivative contracts	4			984			2			(361		)	629
Commodity derivative contracts	—			132			1			(124		)	9
Foreign exchange derivative contracts	1			185			1			(119		)	68
Equity derivative contracts	—			—			168			(165		)	3
Total trading account assets	47			9,476			172			(769		)	8,926
Securities available for sale:
U.S. Treasury	—			2,813			—			—			2,813
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			7,378			—			—			7,378
Privately issued	—			426			—			—			426
Privately issued - commercial mortgage-backed securities	—			663			—			—			663
Collateralized loan obligations	—			1,997			—			—			1,997
Other	—			7			—			—			7
Other debt securities:
Direct bank purchase bonds	—			—			1,543			—			1,543
Other	—			67			26			—			93
Equity securities	5			—			—			—			5
Total securities available for sale	5			13,351			1,569			—			14,925
Other assets:
Mortgage servicing rights	—			—			34			—			34
Interest rate hedging contracts	—			7			—			(5		)	2
Other derivative contracts	—			16			1			(13		)	4
Total other assets	—			23			35			(18		)	40
Total assets	$	52		$	22,850		$	1,776		$	(787	)	$	23,891
Percentage of total	—		%	96		%	7		%	(3		)%	100		%
Percentage of total Company assets	—		%	15		%	1		%	(1		)%	15		%
Liabilities
Trading account liabilities:
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	2,113		$	—		$	—		$	2,113
State and municipal	—			10			—			—			10
Other sovereign government obligations	—			35			—			—			35
Corporate bonds	—			474			—			—			474
Equities	42			—			—			—			42
Trading derivatives:
Interest rate derivative contracts	3			922			—			(665		)	260
Commodity derivative contracts	—			104			—			(55		)	49
Foreign exchange derivative contracts	1			99			1			(18		)	83
Equity derivative contracts	—			—			167			—			167
Total trading account liabilities	46			3,757			168			(738		)	3,233
Other liabilities:
FDIC clawback liability	—			—			113			—			113
Interest rate hedging contracts	—			230			—			(230		)	—
Other derivative contracts	—			—			6			—			6
Total other liabilities	—			230			119			(230		)	119
Total liabilities	$	46		$	3,987		$	287		$	(968	)	$	3,352
Percentage of total	1		%	119		%	9		%	(29		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	(1		)%	2		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

	December 31, 2016
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury securities	$	—		$	1,730		$	—		$	—		$	1,730
U.S. government-sponsored agency securities	—			73			—			—			73
State and municipal securities	—			18			—			—			18
Commercial paper	—			1			—			—			1
Other sovereign government obligations	—			16			—			—			16
Corporate bonds	—			841			—			—			841
Asset-backed securities	—			106			—			—			106
Mortgage-backed securities	—			5,221			—			—			5,221
Equities	85			—			—			—			85
Interest rate derivative contracts	7			1,065			2			(343		)	731
Commodity derivative contracts	—			144			1			(106		)	39
Foreign exchange derivative contracts	1			215			1			(138		)	79
Equity derivative contracts	1			—			164			(163		)	2
Total trading account assets	94			9,430			168			(750		)	8,942
Securities available for sale:
U.S. Treasury	—			2,505			—			—			2,505
Residential mortgage-backed securities:
U.S government and government-sponsored agencies	—			6,695			—			—			6,695
Privately issued	—			327			—			—			327
Privately issued - commercial mortgage-backed securities	—			664			—			—			664
Collateralized loan obligations	—			2,218			—			—			2,218
Other	—			7			—			—			7
Other debt securities:
Direct bank purchase bonds	—			—			1,613			—			1,613
Other	—			82			25			—			107
Equity securities	5			—			—			—			5
Total securities available for sale	5			12,498			1,638			—			14,141
Other assets:
Mortgage servicing rights	—			—			23			—			23
Interest rate hedging contracts	—			22			—			(20		)	2
Other derivative contracts	—			2			1			—			3
Total other assets	—			24			24			(20		)	28
Total assets	$	99		$	21,952		$	1,830		$	(770	)	$	23,111
Percentage of total	—		%	95		%	8		%	(3		)%	100		%
Percentage of total Company assets	—		%	15		%	1		%	(1		)%	15		%
Liabilities
Trading account liabilities:
Securities sold, not yet purchased:
U.S. Treasury	$	—		$	1,973		$	—		$	—		$	1,973
Other sovereign government obligations	—			11			—			—			11
Corporate bonds	—			298			—			—			298
Equities	47			—			—			—			47
Trading derivatives:
Interest rate derivative contracts	1			987			—			(718		)	270
Commodity derivative contracts	—			111			1			(68		)	44
Foreign exchange derivative contracts	1			129			1			(33		)	98
Equity derivative contracts	—			—			164			—			164
Total trading account liabilities	49			3,509			166			(819		)	2,905
Other liabilities:
FDIC clawback liability	—			—			115			—			115
Interest rate hedging contracts	—			199			—			(199		)	—
Other derivative contracts	—			84			6			(29		)	61
Total other liabilities	—			283			121			(228		)	176
Total liabilities	$	49		$	3,792		$	287		$	(1,047	)	$	3,081
Percentage of total	2		%	123		%	9		%	(34		)%	100		%
Percentage of total Company liabilities	—		%	3		%	—		%	(1		)%	2		%

(1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 and 2016. Level 3 available for sale securities at March 31, 2017 and 2016 primarily consist of direct bank purchase bonds. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period.

	For the Three Months Ended
	March 31, 2017														March 31, 2016
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities			Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	168		$	1,638		$	24	$	(166	)	$	(121	)	$	228		$	1,603		$	1	$	(223	)	$	(114	)
Total gains (losses) (realized/unrealized):
Included in income before taxes	30			—			—		(28		)	2			(18		)	—			1		17			(2		)
Included in other comprehensive income	—			3			—		—			—			—			(2		)	—		—			—
Purchases/additions	—			1			11		—			—			—			78			—		—			—
Sales	—			—			—		—			—			—			—			—		—			—
Settlements	(26		)	(73		)	—		26			—			(21		)	(66		)	—		19			—
Transfers in (out) of level 3	—			—			—		—			—			—			—			13		—			—
Asset (liability) balance, end of period	$	172		$	1,569		$	35	$	(168	)	$	(119	)	$	189		$	1,613		$	15	$	(187	)	$	(116	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	30		$	—		$	—	$	(28	)	$	2		$	(18	)	$	—		$	1	$	17		$	(2	)

Significant Unobservable Inputs Level 3 Assets and Liabilities

The following table presents information about significant unobservable inputs related to the Company’s significant Level 3 assets and liabilities at March 31, 2017.

	March 31, 2017
(Dollars in millions)	Level 3 Fair Value		Valuation Technique	Significant Unobservable Input(s)	Range of Inputs		Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,543	Return on equity	Market-required return on capital	8.0 - 10.0	%	9.7	%
				Probability of default	0.0 - 25.0	%	0.3	%
				Loss severity	10.0 - 60.0	%	28.5	%

Financial Assets Measured at Fair Value on Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2017 and 2016 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment.

	March 31, 2017								Gain (Loss) For the Three Months Ended March 31, 2017
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	139	$	—	$	—	$	139	$	(16	)
Other assets:
Software	—		—		—		—		(3		)
Loans held for sale	15		—		—		15		(2		)
Renewable energy investment	9		—		—		9		2
Total	$	163	$	—	$	—	$	163	$	(19	)

	March 31, 2016								Gain (Loss) For the Three Months Ended March 31, 2016
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	375	$	—	$	—	$	375	$	(127	)
Premises and equipment	—		—		—		—		(4		)
Other assets:
Loans held for sale	5		—		—		5		(3		)
OREO	2		—		—		2		(1		)
Private equity investments	10		—		—		10		(12		)
Intangible assets	—		—		—		—		(1		)
Total	$	392	$	—	$	—	$	392	$	(148	)

Carrying Amount and Estimated Fair Value of Financial Instruments

The tables below present the carrying amount and estimated fair value of certain financial instruments, classified by valuation hierarchy level as of March 31, 2017 and as of December 31, 2016:

	March 31, 2017
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	4,827	$	4,827	$	4,827	$	—	$	—
Securities borrowed or purchased under resale agreements	19,992		19,992		—		19,992		—
Securities held to maturity	10,374		10,348		—		10,348		—
Loans held for investment (1)	76,105		77,234		—		—		77,234
Liabilities
Deposits	$	86,533	$	86,519	$	—	$	86,519	$	—
Commercial paper and other short-term borrowings	3,487		3,487		—		3,487		—
Securities loaned or sold under repurchase agreements	25,079		25,079		—		25,079		—
Long-term debt	11,333		11,348		—		11,348		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	202	$	202	$	—	$	—	$	202

(1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

	December 31, 2016
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	5,753	$	5,753	$	5,753	$	—	$	—
Securities borrowed or purchased under resale agreements	19,747		19,747		—		19,747		—
Securities held to maturity	10,337		10,316		—		10,316		—
Loans held for investment (1)	75,112		76,257		—		—		76,257
Liabilities
Deposits	$	86,947	$	86,930	$	—	$	86,930	$	—
Commercial paper and other short-term borrowings	2,360		2,360		—		2,360		—
Securities loaned or sold under repurchase agreements	24,616		24,616		—		24,616		—
Long-term debt	11,410		11,411		—		11,411		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	221	$	221	$	—	$	—	$	221

(1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

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Derivative Instruments and Other Financial Instruments Used For Hedging (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts, Balance Sheet Location and Fair Value Amounts of Derivative Instruments

The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of March 31, 2017 and December 31, 2016, respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively.

	March 31, 2017						December 31, 2016
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
(Dollars in millions)	Amount		Derivatives		Derivatives		Amount		Derivatives		Derivatives
Cash flow hedges
Interest rate contracts	$	13,244	$	6	$	230	$	15,459	$	19	$	199
Fair value hedges
Interest rate contracts	500		1		—		500		3		—
Not designated as hedging instruments:
Trading
Interest rate contracts	145,724		990		925		149,229		1,074		988
Commodity contracts	2,462		133		104		2,825		145		112
Foreign exchange contracts	5,756		187		101		5,981		217		131
Equity contracts	1,995		168		167		2,385		165		164
Other contracts	21		—		—		4		—		—
Total Trading	155,958		1,478		1,297		160,424		1,601		1,395
Other risk management	1,003		17		6		1,045		3		90
Total derivative instruments	$	170,705	$	1,502	$	1,533	$	177,428	$	1,626	$	1,684

Amount and Location of Gains and Losses for Derivatives Designated as Cash Flow Hedges

The following tables present the amount and location of the net gains and losses recorded in the Company’s consolidated statements of income and changes in stockholder’s equity for derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016:

	Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion)						Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					(Gain) Loss Recognized in Income on Derivative Instruments (Ineffective Portion)
	For the Three Months Ended March 31,						For the Three Months Ended March 31,					For the Three Months Ended March 31,
(Dollars in millions)	2017			2016		Location	2017		2016		Location	2017		2016
Derivatives in cash flow hedging relationships
						Interest income	$	29	$	42
Interest rate contracts	$	(19	)	$	261	Interest expense	—		—		Noninterest expense	$	2	$	1
Total	$	(19	)	$	261		$	29	$	42		$	2	$	1

Schedule of derivative gains (losses) on the Company's fair value hedges

The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the three months ended March 31, 2017 and 2016, respectively:

	For the Three Months Ended March 31, 2017
(Dollars in millions)	Derivative			Hedged Item		Hedge Ineffectiveness
Interest rate risk on long-term debt	$	(2	)	$	1	$	(1	)
Total	$	(2	)	$	1	$	(1	)

	For the Three Months Ended March 31, 2016
(Dollars in millions)	Derivative		Hedged Item			Hedge Ineffectiveness
Interest rate risk on long-term debt	$	7	$	(7	)	$	—
Total	$	7	$	(7	)	$	—

Gain or (Loss) Recognized in Income on Derivative Instruments

The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the three months ended March 31, 2017 and 2016:

	Gain or (Loss) Recognized in Income on Derivative Instruments
	For the Three Months Ended
(Dollars in millions)	March 31, 2017			March 31, 2016
Trading derivatives:
Interest rate contracts	$	(22	)	$	(9	)
Foreign exchange contracts	10			9
Total	$	(12	)	$	—

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component for the three months ended March 31, 2017 and 2016:

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Three Months Ended March 31, 2017
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	(19	)	$	7		$	(12	)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(29		)	11			(18		)
Net change	(48		)	18			(30		)
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	56			(23		)	33
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(2		)	1			(1		)
Amortization of net unrealized (gains) losses on held to maturity securities	5			(2		)	3
Net change	59			(24		)	35
Foreign currency translation adjustment	1			—			1
Pension and other benefits:
Amortization of prior service credit (1)	(12		)	5			(7		)
Recognized net actuarial (gain) loss(1)	23			(9		)	14
Net change	11			(4		)	7
Net change in AOCI	$	23		$	(10	)	$	13

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.

(Dollars in millions)	Before Tax Amount			Tax Effect			Net of Tax
For the Three Months Ended March 31, 2016
Cash flow hedge activities:
Unrealized net gains (losses) on hedges arising during the period	$	261		$	(103	)	$	158
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt	(42		)	16			(26		)
Net change	219			(87		)	132
Securities:
Unrealized holding gains (losses) arising during the period on securities available for sale	157			(62		)	95
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net	(13		)	5			(8		)
Amortization of net unrealized (gains) losses on held to maturity securities	5			(2		)	3
Net change	149			(59		)	90
Foreign currency translation adjustment	7			(3		)	4
Pension and other benefits:
Amortization of prior service credit (1)	(6		)	3			(3		)
Recognized net actuarial (gain) loss(1)	22			(9		)	13
Net change	16			(6		)	10
Other	(2		)	—			(2		)
Net change in AOCI	$	389		$	(155	)	$	234

(1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.

Change in Accumulated Other Comprehensive Loss Balances

The following tables present the change in accumulated other comprehensive loss balances:

For the Three Months Ended March 31, 2016 and 2017:
	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Securities			Foreign Currency Translation Adjustment			Pension and Other Postretirement Benefits Adjustment			Other			Accumulated Other Comprehensive Loss
(Dollars in millions)
Balance December 31, 2015	$	38		$	(152	)	$	(24	)	$	(612	)	$	—		$	(750	)
Other comprehensive income (loss) before reclassifications	158			98			4			—			—			260
Amounts reclassified from AOCI	(26		)	(8		)	—			10			(2		)	(26		)
Balance, March 31, 2016	$	170		$	(62	)	$	(20	)	$	(602	)	$	(2	)	$	(516	)
Balance, December 31, 2016	$	(77	)	$	(208	)	$	(22	)	$	(589	)	$	—		$	(896	)
Other comprehensive income (loss) before reclassifications	(12		)	36			1			—			—			25
Amounts reclassified from AOCI	(18		)	(1		)	—			7			—			(12		)
Balance, March 31, 2017	$	(107	)	$	(173	)	$	(21	)	$	(582	)	$	—		$	(883	)

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Employee Pension and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The following table summarizes the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016.

	Pension Benefits						Other Postretirement Benefits						Superannuation, SERP and ESBP
	For the Three Months Ended   March 31,						For the Three Months Ended   March 31,						For the Three Months Ended   March 31,
(Dollars in millions)	2017			2016			2017			2016			2017		2016
Components of net periodic benefit cost:
Service cost	$	19		$	23		$	2		$	2		$	—	$	1
Interest cost	25			26			2			3			1		—
Expected return on plan assets	(64		)	(60		)	(5		)	(5		)	—		—
Amortization of prior service credit	(7		)	(4		)	(5		)	(2		)	—		—
Recognized net actuarial loss	19			19			3			2			1		1
Total net periodic benefit cost	$	(8	)	$	4		$	(3	)	$	—		$	2	$	2

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Commitments, Contingencies and Guarantees (Tables)

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Summary of Commitments

The following table summarizes the Company's commitments:

(Dollars in millions)	March 31, 2017
Commitments to extend credit	$	30,976
Issued standby and commercial letters of credit	5,770
Commitments to enter into forward-starting resale agreements	502
Other commitments	1,605

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Schedule of reportable business segments

The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Beginning with the second quarter of 2016, the Company revised its methodology for allocating certain indirect costs to the segments. Beginning with the third quarter of 2016, the Company revised its funds transfer pricing methodology related to certain deposits. Prior period results have been updated to reflect these changes in methodology. Certain of the transferred IHC entities are not measured using management accounting methodologies.

As of and for the Three Months Ended March 31, 2017:
(Dollars in millions)	Regional Bank		U.S. Wholesale Banking		Transaction Banking		Investment Banking & Markets			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations - Market View (1)
Net interest income (expense)	$	498	$	87	$	137	$	42		$	59	$	(28	)	$	795
Noninterest income (expense)	112		104		39		79			84		70			488
Total revenue	610		191		176		121			143		42			1,283
Noninterest expense	502		53		111		59			105		176			1,006
(Reversal of) provision for credit losses	2		—		—		(10		)	—		(22		)	(30		)
Income (loss) before income taxes and including noncontrolling interests	106		138		65		72			38		(112		)	307
Income tax expense (benefit)	23		55		26		(3		)	15		(33		)	83
Net income (loss) including noncontrolling interests	83		83		39		75			23		(79		)	224
Deduct: net loss from noncontrolling interests	—		—		—		—			—		5			5
Net income (loss) attributable to MUAH	$	83	$	83	$	39	$	75		$	23	$	(74	)	$	229
Total assets, end of period	$	63,950	$	11,179	$	2,094	$	13,778		$	30,472	$	28,205		$	149,678

(1) The transferred IHC entities are not measured using a "market view" perspective.

As of and for the Three Months Ended March 31, 2016:
(Dollars in millions)	Regional Bank			U.S. Wholesale Banking			Transaction Banking		Investment Banking & Markets			MUSA		Other			MUFG Americas Holdings Corporation
Results of operations - Market View (1)
Net interest income (expense)	$	475		$	107		$	113	$	56		$	25	$	(52	)	$	724
Noninterest income (expense)	114			29			46		47			71		167			474
Total revenue	589			136			159		103			96		115			1,198
Noninterest expense	441			49			120		58			86		214			968
(Reversal of) provision for credit losses	(2		)	130			2		31			—		1			162
Income (loss) before income taxes and including noncontrolling interests	150			(43		)	37		14			10		(100		)	68
Income tax expense (benefit)	42			(17		)	14		(19		)	4		(6		)	18
Net income (loss) including noncontrolling interests	108			(26		)	23		33			6		(94		)	50
Deduct: net loss from noncontrolling interests	—			—			—		1			—		11			12
Net income (loss) attributable to MUAH	$	108		$	(26	)	$	23	$	34		$	6	$	(83	)	$	62
Total assets, end of period	$	62,190		$	15,173		$	2,522	$	14,556		$	32,961	$	29,152		$	156,554

(1) The transferred IHC entities are not measured using a "market view" perspective.

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

As of March 31, 2017 and December 31, 2016, assets and liabilities with affiliates consisted of the following:

(Dollars in millions)	March 31, 2017		December 31, 2016
Assets:
Cash and cash equivalents	$	105	$	102
Securities borrowed or purchased under resale agreements	2,386		2,765
Other assets	190		161
Liabilities:
Deposits	$	661	$	623
Securities loaned or sold under repurchase agreements	597		385
Commercial paper and other short-term borrowings	1,196		1,372
Long-term debt	5,966		6,042
Other liabilities	124		63

Revenue and expenses with affiliates for the three months ended March 31, 2017 and 2016 were as follows:

	For the Three Months Ended   March 31,
(Dollars in millions)	2017		2016
Interest Income
Securities borrowed or purchased under resale agreements	$	7	$	6
Interest Expense
Commercial paper and other short-term borrowings	2		6
Long-term debt	28		7
Securities loaned or sold under repurchase agreements	1		—
Noninterest Income
Fees from affiliates	219		212
Other, net	2		—
Noninterest Expense
Other	25		24

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Securities (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Securities available for sale
Amortized Cost	$ 15,108	$ 14,378
Gross Unrealized Gains	65	54
Gross Unrealized Losses	248	291
Fair Value	14,925	14,141
U.S. Treasury securities
Securities available for sale
Amortized Cost	2,920	2,625
Gross Unrealized Gains	2	1
Gross Unrealized Losses	109	121
Fair Value	2,813	2,505
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Securities available for sale
Amortized Cost	7,474	6,814
Gross Unrealized Gains	5	3
Gross Unrealized Losses	101	122
Fair Value	7,378	6,695
Residential mortgage-backed securities, Privately issued
Securities available for sale
Amortized Cost	431	333
Gross Unrealized Gains	1	1
Gross Unrealized Losses	6	7
Fair Value	426	327
Privately issued - commercial mortgage-backed securities
Securities available for sale
Amortized Cost	664	666
Gross Unrealized Gains	5	4
Gross Unrealized Losses	6	6
Fair Value	663	664
Collateralized loan obligations
Securities available for sale
Amortized Cost	1,985	2,219
Gross Unrealized Gains	13	4
Gross Unrealized Losses	1	5
Fair Value	1,997	2,218
Other Asset Liability Management Securities
Securities available for sale
Amortized Cost	7	7
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	7	7
Asset Liability Management securities
Securities available for sale
Amortized Cost	13,481	12,664
Gross Unrealized Gains	26	13
Gross Unrealized Losses	223	261
Fair Value	13,284	12,416
Other debt securities, Direct bank purchase bonds
Securities available for sale
Amortized Cost	1,528	1,601
Gross Unrealized Gains	39	41
Gross Unrealized Losses	24	29
Fair Value	1,543	1,613
Other debt securities, Other
Securities available for sale
Amortized Cost	94	108
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1	1
Fair Value	93	107
Equities
Securities available for sale
Amortized Cost	5	5
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 5	$ 5

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Securities (Details 2) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	$ 8,909	$ 8,919
Securities available for sale, Less than 12 months, Unrealized Losses	220	259
Securities available for sale, 12 months or more, Fair Value	1,316	2,289
Securities available for sale, 12 months or more, Unrealized Losses	28	32
Securities available for sale, Fair Value, Total	10,225	11,208
Securities available for sale, Unrealized Losses, Total	248	291
US Treasury Securities
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	2,270	2,257
Securities available for sale, Less than 12 months, Unrealized Losses	109	121
Securities available for sale, 12 months or more, Fair Value	0	0
Securities available for sale, 12 months or more, Unrealized Losses	0	0
Securities available for sale, Fair Value, Total	2,270	2,257
Securities available for sale, Unrealized Losses, Total	109	121
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	5,567	5,501
Securities available for sale, Less than 12 months, Unrealized Losses	93	113
Securities available for sale, 12 months or more, Fair Value	606	667
Securities available for sale, 12 months or more, Unrealized Losses	8	9
Securities available for sale, Fair Value, Total	6,173	6,168
Securities available for sale, Unrealized Losses, Total	101	122
Residential mortgage-backed securities, Privately issued
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	249	249
Securities available for sale, Less than 12 months, Unrealized Losses	5	6
Securities available for sale, 12 months or more, Fair Value	26	29
Securities available for sale, 12 months or more, Unrealized Losses	1	1
Securities available for sale, Fair Value, Total	275	278
Securities available for sale, Unrealized Losses, Total	6	7
Privately issued - commercial mortgage-backed securities
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	371	415
Securities available for sale, Less than 12 months, Unrealized Losses	6	6
Securities available for sale, 12 months or more, Fair Value	11	11
Securities available for sale, 12 months or more, Unrealized Losses	0	0
Securities available for sale, Fair Value, Total	382	426
Securities available for sale, Unrealized Losses, Total	6	6
Collateralized loan obligations
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	168	75
Securities available for sale, Less than 12 months, Unrealized Losses	0	0
Securities available for sale, 12 months or more, Fair Value	129	1,077
Securities available for sale, 12 months or more, Unrealized Losses	1	5
Securities available for sale, Fair Value, Total	297	1,152
Securities available for sale, Unrealized Losses, Total	1	5
Asset-backed and other
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value		0
Securities available for sale, Less than 12 months, Unrealized Losses		0
Securities available for sale, 12 months or more, Fair Value		1
Securities available for sale, 12 months or more, Unrealized Losses		0
Securities available for sale, Fair Value, Total		1
Securities available for sale, Unrealized Losses, Total		0
Asset Liability Management securities
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	8,625	8,497
Securities available for sale, Less than 12 months, Unrealized Losses	213	246
Securities available for sale, 12 months or more, Fair Value	772	1,785
Securities available for sale, 12 months or more, Unrealized Losses	10	15
Securities available for sale, Fair Value, Total	9,397	10,282
Securities available for sale, Unrealized Losses, Total	223	261
Other debt securities, Direct bank purchase bonds
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	193	386
Securities available for sale, Less than 12 months, Unrealized Losses	6	12
Securities available for sale, 12 months or more, Fair Value	539	499
Securities available for sale, 12 months or more, Unrealized Losses	18	17
Securities available for sale, Fair Value, Total	732	885
Securities available for sale, Unrealized Losses, Total	24	29
Other debt securities, Other
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value	91	36
Securities available for sale, Less than 12 months, Unrealized Losses	1	1
Securities available for sale, 12 months or more, Fair Value	5	0
Securities available for sale, 12 months or more, Unrealized Losses	0	0
Securities available for sale, Fair Value, Total	96	36
Securities available for sale, Unrealized Losses, Total	$ 1	1
Equities
Securities available for sale
Securities available for sale, Less than 12 months, Fair Value		0
Securities available for sale, Less than 12 months, Unrealized Losses		0
Securities available for sale, 12 months or more, Fair Value		5
Securities available for sale, 12 months or more, Unrealized Losses		0
Securities available for sale, Fair Value, Total		5
Securities available for sale, Unrealized Losses, Total		$ 0

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Securities (Details 3) $ in Millions	Mar. 31, 2017 USD ($)
Securities available for sale
One Year or Less	$ 5
Over One Year Through Five Years	899
Over Five Years Through Ten Years	4,465
Over Ten Years	9,551
Total Fair Value	14,920
U.S. Treasury securities
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	393
Over Five Years Through Ten Years	2,420
Over Ten Years	0
Total Fair Value	2,813
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	9
Over Five Years Through Ten Years	301
Over Ten Years	7,068
Total Fair Value	7,378
Residential mortgage-backed securities, Privately issued
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	1
Over Five Years Through Ten Years	0
Over Ten Years	425
Total Fair Value	426
Privately issued - commercial mortgage-backed securities
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	0
Over Five Years Through Ten Years	0
Over Ten Years	663
Total Fair Value	663
Collateralized loan obligations
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	0
Over Five Years Through Ten Years	1,020
Over Ten Years	977
Total Fair Value	1,997
Other Asset Liability Management Securities
Securities available for sale
One Year or Less	1
Over One Year Through Five Years	1
Over Five Years Through Ten Years	5
Over Ten Years	0
Total Fair Value	7
Asset Liability Management securities
Securities available for sale
One Year or Less	1
Over One Year Through Five Years	404
Over Five Years Through Ten Years	3,746
Over Ten Years	9,133
Total Fair Value	13,284
Other debt securities, Direct bank purchase bonds
Securities available for sale
One Year or Less	4
Over One Year Through Five Years	428
Over Five Years Through Ten Years	719
Over Ten Years	392
Total Fair Value	1,543
Other debt securities, Other
Securities available for sale
One Year or Less	0
Over One Year Through Five Years	67
Over Five Years Through Ten Years	0
Over Ten Years	26
Total Fair Value	$ 93

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Securities (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Gross realized gains	$ 2	$ 13
Gross realized losses	$ 0	$ 0

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Securities (Details 5) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Securities held to maturity
Securities held to maturity, Amortized Cost	$ 10,471	$ 10,438
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	2	3
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	99	104
Total securities held to maturity, carrying amount	10,374	10,337
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	79	82
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI	105	103
Total securities held to maturity, Fair Value	10,348	10,316
US Treasury Securities
Securities held to maturity
Securities held to maturity, Amortized Cost	493	492
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	0	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	0	0
Total securities held to maturity, carrying amount	493	492
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	4	5
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI	0	0
Total securities held to maturity, Fair Value	497	497
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Securities held to maturity
Securities held to maturity, Amortized Cost	8,342	8,301
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	2	3
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	38	41
Total securities held to maturity, carrying amount	8,306	8,263
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	32	34
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI	98	96
Total securities held to maturity, Fair Value	8,240	8,201
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
Securities held to maturity
Securities held to maturity, Amortized Cost	1,636	1,645
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI)	0	0
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI)	61	63
Total securities held to maturity, carrying amount	1,575	1,582
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI	43	43
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI	7	7
Total securities held to maturity, Fair Value	$ 1,611	$ 1,618

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Securities (Details 6) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Securities held to maturity
Less than 12 months, Fair Value	$ 5,086	$ 4,603
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	98	93
12 months or more, Fair Value	2,769	2,834
12 months or more, Unrealized Losses, Recognized in OCI	99	104
12 months or more, Unrealized Losses, Not Recognized in OCI	7	10
Total, Fair Value	7,855	7,437
Total, Unrealized Losses, Recognized in OCI	99	104
Total, Unrealized Losses, Not Recognized in OCI	105	103
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Securities held to maturity
Less than 12 months, Fair Value	4,977	4,492
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	96	92
12 months or more, Fair Value	1,324	1,386
12 months or more, Unrealized Losses, Recognized in OCI	38	41
12 months or more, Unrealized Losses, Not Recognized in OCI	2	4
Total, Fair Value	6,301	5,878
Total, Unrealized Losses, Recognized in OCI	38	41
Total, Unrealized Losses, Not Recognized in OCI	98	96
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
Securities held to maturity
Less than 12 months, Fair Value	109	111
Less than 12 months, Unrealized Losses, Recognized in OCI	0	0
Less than 12 months, Unrealized Losses, Not Recognized in OCI	2	1
12 months or more, Fair Value	1,445	1,448
12 months or more, Unrealized Losses, Recognized in OCI	61	63
12 months or more, Unrealized Losses, Not Recognized in OCI	5	6
Total, Fair Value	1,554	1,559
Total, Unrealized Losses, Recognized in OCI	61	63
Total, Unrealized Losses, Not Recognized in OCI	$ 7	$ 7

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Securities (Details 7) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	$ 792
Over One Year Through Five Years, Fair Value	806
Over Five Years Through Ten Years, Carrying Amount	884
Over Five Years Through Ten Years, Fair Value	905
Over Ten Years, Carrying Amount	8,698
Over Ten Years, Fair Value	8,637
Total securities held to maturity, carrying amount	10,374	$ 10,337
Total securities held to maturity, Fair Value	10,348	10,316
U.S. Treasury securities
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	493
Over One Year Through Five Years, Fair Value	497
Over Five Years Through Ten Years, Carrying Amount	0
Over Five Years Through Ten Years, Fair Value	0
Over Ten Years, Carrying Amount	0
Over Ten Years, Fair Value	0
Total securities held to maturity, carrying amount	493	492
Total securities held to maturity, Fair Value	497	497
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	0
Over One Year Through Five Years, Fair Value	0
Over Five Years Through Ten Years, Carrying Amount	326
Over Five Years Through Ten Years, Fair Value	324
Over Ten Years, Carrying Amount	7,980
Over Ten Years, Fair Value	7,916
Total securities held to maturity, carrying amount	8,306	8,263
Total securities held to maturity, Fair Value	8,240	$ 8,201
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
Securities held to maturity
Over One Year Through Five Years, Carrying Amount	299
Over One Year Through Five Years, Fair Value	309
Over Five Years Through Ten Years, Carrying Amount	558
Over Five Years Through Ten Years, Fair Value	581
Over Ten Years, Carrying Amount	718
Over Ten Years, Fair Value	721
Total securities held to maturity, carrying amount	1,575
Total securities held to maturity, Fair Value	$ 1,611

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Securities (Details 8) - USD ($) $ in Billions	Mar. 31, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value	$ 12.4	$ 12.1
Financial Instruments Owned and Pledged as Collateral, Amount Eligible to be Repledged by Counterparty	1.2	1.3
Securities Received as Collateral	30.5	31.6
Fair Value of Securities Received as Collateral that Can be Resold or Repledged	30.5	31.6
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged	$ 29.1	$ 30.5

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Loans and Allowance for Loan Losses (Details) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Loans disclosures
Loans excluding purchased credit-impaired loans		$ 78,434	$ 77,551
Loans held for investment	[1]	78,434	77,551
Allowance for loan losses		(570)	(639)	$ (881)	$ (723)
Loans held for investment, net		77,864	76,912
Net unamortized discounts and premiums and deferred fees and costs		205	180
Commercial portfolio
Loans disclosures
Loans excluding purchased credit-impaired loans		43,889	44,106
Commercial portfolio | Commercial and industrial
Loans disclosures
Loans excluding purchased credit-impaired loans		25,602	25,379
Commercial portfolio | Commercial mortgage
Loans disclosures
Loans excluding purchased credit-impaired loans		14,468	14,625
Commercial portfolio | Construction
Loans disclosures
Loans excluding purchased credit-impaired loans		2,040	2,283
Commercial portfolio | Lease financing
Loans disclosures
Loans excluding purchased credit-impaired loans		1,779	1,819
Consumer portfolio
Loans disclosures
Loans excluding purchased credit-impaired loans		34,545	33,445
Consumer portfolio | Residential mortgage
Loans disclosures
Loans excluding purchased credit-impaired loans		31,162	29,922
Consumer portfolio | Home equity and other consumer loans
Loans disclosures
Loans excluding purchased credit-impaired loans		$ 3,383	$ 3,523

[1] Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

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Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	$ 639	$ 723
(Reversal of) provision for loan losses	(14)	158
Other	1	4
Loans charged-off	(66)	(9)
Recoveries of loans previously charged-off	10	5
Allowance for loan losses, end of period	570	881
Commercial portfolio
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	556	653
(Reversal of) provision for loan losses	(26)	171
Other	1	4
Loans charged-off	(55)	(8)
Recoveries of loans previously charged-off	9	4
Allowance for loan losses, end of period	485	824
Consumer portfolio
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	83	50
(Reversal of) provision for loan losses	12	7
Other	0	0
Loans charged-off	(11)	(1)
Recoveries of loans previously charged-off	1	1
Allowance for loan losses, end of period	85	57
Unallocated portfolio
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses, beginning of period	0	20
(Reversal of) provision for loan losses	0	(20)
Other	0	0
Loans charged-off	0	0
Recoveries of loans previously charged-off	0	0
Allowance for loan losses, end of period	$ 0	$ 0

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Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Loan losses allowance
Individually evaluated for impairment		$ 137	$ 168
Collectively evaluated for impairment		433	471
Total allowance for loan losses		570	639	$ 881	$ 723
Loans held for investment:
Individually evaluated for impairment		1,010	1,022
Collectively evaluated for impairment		77,424	76,529
Loans held for investment	[1]	78,434	77,551
Commercial portfolio
Loan losses allowance
Individually evaluated for impairment		117	151
Collectively evaluated for impairment		368	405
Total allowance for loan losses		485	556	824	653
Loans held for investment:
Individually evaluated for impairment		638	636
Collectively evaluated for impairment		43,251	43,470
Loans held for investment		43,889	44,106
Consumer portfolio
Loan losses allowance
Individually evaluated for impairment		20	17
Collectively evaluated for impairment		65	66
Total allowance for loan losses		85	83	$ 57	$ 50
Loans held for investment:
Individually evaluated for impairment		372	386
Collectively evaluated for impairment		34,173	33,059
Loans held for investment		$ 34,545	$ 33,445

[1] Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs.

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Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Nonaccrual loans
Nonaccrual loans	$ 569	$ 689
Troubled debt restructured loans that continue to accrue interest	336	215
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above)	301	384
Commercial portfolio
Nonaccrual loans
Nonaccrual loans	433	489
Commercial portfolio | Commercial and industrial
Nonaccrual loans
Nonaccrual loans	400	458
Commercial portfolio | Commercial mortgage
Nonaccrual loans
Nonaccrual loans	33	31
Consumer portfolio
Nonaccrual loans
Nonaccrual loans	136	200
Consumer portfolio | Residential mortgage
Nonaccrual loans
Nonaccrual loans	110	171
Consumer portfolio | Home equity and other consumer loans
Nonaccrual loans
Nonaccrual loans	$ 26	$ 29

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Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Aging of loans
Current	$ 78,151	$ 77,188
30 to 89 Days Past Due	159	228
Total loans 90 days or more past due and still accruing	124	135
Total Past Due	283	363
Total loans held for investment, before purchased credit-impaired loans	78,434	77,551
Commercial portfolio
Aging of loans
Current	43,792	43,939
30 to 89 Days Past Due	28	91
Total loans 90 days or more past due and still accruing	69	76
Total Past Due	97	167
Total loans held for investment, before purchased credit-impaired loans	43,889	44,106
Commercial portfolio | Commercial and industrial
Aging of loans
Current	27,317	27,085
30 to 89 Days Past Due	10	54
Total loans 90 days or more past due and still accruing	54	59
Total Past Due	64	113
Total loans held for investment, before purchased credit-impaired loans	27,381	27,198
Commercial portfolio | Commercial mortgage
Aging of loans
Current	14,435	14,571
30 to 89 Days Past Due	18	37
Total loans 90 days or more past due and still accruing	15	17
Total Past Due	33	54
Total loans held for investment, before purchased credit-impaired loans	14,468	14,625
Commercial portfolio | Construction
Aging of loans
Current	2,040	2,283
30 to 89 Days Past Due	0	0
Total loans 90 days or more past due and still accruing	0	0
Total Past Due	0	0
Total loans held for investment, before purchased credit-impaired loans	2,040	2,283
Consumer portfolio
Aging of loans
Current	34,359	33,249
30 to 89 Days Past Due	131	137
Total loans 90 days or more past due and still accruing	55	59
Total Past Due	186	196
Total loans held for investment, before purchased credit-impaired loans	34,545	33,445
Consumer portfolio | Residential mortgage
Aging of loans
Current	31,012	29,770
30 to 89 Days Past Due	110	110
Total loans 90 days or more past due and still accruing	40	42
Total Past Due	150	152
Total loans held for investment, before purchased credit-impaired loans	31,162	29,922
Consumer portfolio | Home equity and other consumer loans
Aging of loans
Current	3,347	3,479
30 to 89 Days Past Due	21	27
Total loans 90 days or more past due and still accruing	15	17
Total Past Due	36	44
Total loans held for investment, before purchased credit-impaired loans	$ 3,383	$ 3,523

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Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Aging of loans
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	$ 24	$ 23
Commercial portfolio
Aging of loans
Total loans	43,840	43,769
Commercial portfolio | Pass
Aging of loans
Total loans	41,689	41,342
Commercial portfolio | Special Mention
Aging of loans
Total loans	846	1,142
Commercial portfolio | Classified
Aging of loans
Total loans	1,305	1,285
Commercial portfolio | Commercial and industrial
Aging of loans
Total loans	27,350	26,985
Commercial portfolio | Commercial and industrial | Pass
Aging of loans
Total loans	25,708	25,028
Commercial portfolio | Commercial and industrial | Special Mention
Aging of loans
Total loans	635	860
Commercial portfolio | Commercial and industrial | Classified
Aging of loans
Total loans	1,007	1,097
Commercial portfolio | Commercial mortgage
Aging of loans
Total loans	14,449	14,501
Commercial portfolio | Commercial mortgage | Pass
Aging of loans
Total loans	14,119	14,152
Commercial portfolio | Commercial mortgage | Special Mention
Aging of loans
Total loans	93	161
Commercial portfolio | Commercial mortgage | Classified
Aging of loans
Total loans	237	188
Commercial portfolio | Construction
Aging of loans
Total loans	2,041	2,283
Commercial portfolio | Construction | Pass
Aging of loans
Total loans	1,862	2,162
Commercial portfolio | Construction | Special Mention
Aging of loans
Total loans	118	121
Commercial portfolio | Construction | Classified
Aging of loans
Total loans	$ 61	$ 0

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Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Consumer portfolio loans
Nonaccrual	$ 569	$ 689
Total loans held for investment, before purchased credit-impaired loans	78,434	77,551
Consumer
Consumer portfolio loans
Loans and Leases Receivable, Net Amount	10	11
Consumer portfolio
Consumer portfolio loans
Accrual	34,409	33,245
Nonaccrual	136	200
Total loans held for investment, before purchased credit-impaired loans	34,545	33,445
Consumer portfolio | Residential mortgage
Consumer portfolio loans
Accrual	31,052	29,751
Nonaccrual	110	171
Total loans held for investment, before purchased credit-impaired loans	31,162	29,922
Consumer portfolio | Home equity and other consumer loans
Consumer portfolio loans
Accrual	3,357	3,494
Nonaccrual	26	29
Total loans held for investment, before purchased credit-impaired loans	$ 3,383	$ 3,523

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Loans and Allowance for Loan Losses (Details 8) - Consumer portfolio - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		$ 34,186	$ 33,099
Percentage of total		100.00%	100.00%
FICO Score 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		$ 26,928	$ 25,970
Percentage of total		79.00%	78.00%
FICO Score Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		$ 6,683	$ 6,574
Percentage of total		19.00%	20.00%
No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	[1]	$ 575	$ 555
Percentage of total	[1]	2.00%	2.00%
Residential mortgage
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		$ 30,862	$ 29,639
Residential mortgage | FICO Score 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		24,680	23,598
Residential mortgage | FICO Score Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		5,746	5,597
Residential mortgage | No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	[1]	436	444
Home equity and other consumer loans
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		3,324	3,460
Home equity and other consumer loans | FICO Score 720 and Above
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		2,248	2,372
Home equity and other consumer loans | FICO Score Below 720
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements		937	977
Home equity and other consumer loans | No FICO Available
Credit quality of consumer loans
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements	[1]	$ 139	$ 111

[1] Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

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Loans and Allowance for Loan Losses (Details 9) - Consumer portfolio - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Credit quality of consumer loans
Loans categorized by LTV ratio		$ 33,260	$ 32,089
Percentage of total loans categorized by LTV ratio		100.00%	100.00%
LTV Ratio Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		$ 31,824	$ 30,707
Percentage of total loans categorized by LTV ratio		96.00%	96.00%
LTV Ratio Greater than 80 Percent and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		$ 1,309	$ 1,236
Percentage of total loans categorized by LTV ratio		4.00%	4.00%
LTV Ratio Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		$ 51	$ 57
Percentage of total loans categorized by LTV ratio		0.00%	0.00%
No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	[1]	$ 76	$ 89
Percentage of total loans categorized by LTV ratio	[1]	0.00%	0.00%
Residential mortgage
Credit quality of consumer loans
Loans categorized by LTV ratio		$ 30,862	$ 29,639
Residential mortgage | LTV Ratio Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		29,721	28,547
Residential mortgage | LTV Ratio Greater than 80 Percent and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		1,090	1,030
Residential mortgage | LTV Ratio Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		14	16
Residential mortgage | No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	[1]	37	46
Home Equity loans
Credit quality of consumer loans
Loans categorized by LTV ratio		2,398	2,450
Home Equity loans | LTV Ratio Less than or Equal to 80 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		2,103	2,160
Home Equity loans | LTV Ratio Greater than 80 Percent and Less than 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		219	206
Home Equity loans | LTV Ratio Greater than or Equal to 100 Percent
Credit quality of consumer loans
Loans categorized by LTV ratio		37	41
Home Equity loans | No LTV Available
Credit quality of consumer loans
Loans categorized by LTV ratio	[1]	$ 39	$ 43

[1] Represents loans for which management was not able to obtain refreshed property values.

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Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Pre- and Post - modification recorded investments
Commitment to lend additional funds to borrowers with loan modifications classified as TDRs	$ 48	$ 59
Total excluding purchased credit-impaired loans	637	599
Commercial portfolio
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	374	330
Commercial portfolio | Commercial and industrial
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	304	321
Commercial portfolio | Commercial mortgage
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	9	9
Commercial portfolio | Construction
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	61	0
Consumer portfolio
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	263	269
Consumer portfolio | Residential mortgage
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	234	239
Consumer portfolio | Home equity and other consumer loans
Pre- and Post - modification recorded investments
Total excluding purchased credit-impaired loans	$ 29	$ 30

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Loans and Allowance for Loan Losses (Details 11) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	$ 144	$ 60
Post-Modification Outstanding Recorded Investment	[2]	144	60
Commercial portfolio
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	140	55
Post-Modification Outstanding Recorded Investment	[2]	140	55
Commercial portfolio | Commercial and industrial
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	78	50
Post-Modification Outstanding Recorded Investment	[2]	78	50
Commercial portfolio | Commercial mortgage
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	1	5
Post-Modification Outstanding Recorded Investment	[2]	1	5
Commercial portfolio | Construction
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	61
Post-Modification Outstanding Recorded Investment	[2]	61
Consumer portfolio
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	4	5
Post-Modification Outstanding Recorded Investment	[2]	4	5
Consumer portfolio | Residential mortgage
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]	4	4
Post-Modification Outstanding Recorded Investment	[2]	$ 4	4
Consumer portfolio | Home equity and other consumer loans
Pre- and Post - modification recorded investments
Pre-Modification Outstanding Recorded Investment	[1]		1
Post-Modification Outstanding Recorded Investment	[2]		$ 1

[1] Represents the recorded investment in the loan immediately prior to the restructuring event.

[2] Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

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Loans and Allowance for Loan Losses (Details 12) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Troubled debt restructured loans
Minimum defaulting period	60 days
Total troubled debt restructured loans at date of default	$ 4	$ 3
Commercial portfolio
Troubled debt restructured loans
Total troubled debt restructured loans at date of default	3	1
Commercial portfolio | Commercial and industrial
Troubled debt restructured loans
Total troubled debt restructured loans at date of default	2	1
Commercial portfolio | Commercial mortgage
Troubled debt restructured loans
Total troubled debt restructured loans at date of default	1
Consumer portfolio
Troubled debt restructured loans
Total troubled debt restructured loans at date of default	1	2
Consumer portfolio | Residential mortgage
Troubled debt restructured loans
Total troubled debt restructured loans at date of default	$ 1	$ 2

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Loans and Allowance for Loan Losses (Details 13) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Loan impairment
Recorded investment with an allowance	$ 756	$ 882
Recorded investment without an allowance	254	140
Impaired loans	1,010	1,022
Allowance for impaired loans	137	168
Unpaid principal balance with an allowance	865	986
Unpaid principal balance without an allowance	309	182
Commercial portfolio
Loan impairment
Recorded investment with an allowance	475	591
Recorded investment without an allowance	163	45
Impaired loans	638	636
Allowance for impaired loans	117	151
Unpaid principal balance with an allowance	568	680
Unpaid principal balance without an allowance	195	63
Commercial portfolio | Commercial and industrial
Loan impairment
Recorded investment with an allowance	421	505
Recorded investment without an allowance	94	36
Impaired loans	515	541
Allowance for impaired loans	116	150
Unpaid principal balance with an allowance	514	672
Unpaid principal balance without an allowance	125	54
Commercial portfolio | Commercial mortgage
Loan impairment
Recorded investment with an allowance	54	86
Recorded investment without an allowance	8	9
Impaired loans	62	95
Allowance for impaired loans	1	1
Unpaid principal balance with an allowance	54	8
Unpaid principal balance without an allowance	9	9
Commercial portfolio | Construction
Loan impairment
Recorded investment with an allowance	0
Recorded investment without an allowance	61
Impaired loans	61
Allowance for impaired loans	0
Unpaid principal balance with an allowance	0
Unpaid principal balance without an allowance	61
Consumer portfolio
Loan impairment
Recorded investment with an allowance	281	291
Recorded investment without an allowance	91	95
Impaired loans	372	386
Allowance for impaired loans	20	17
Unpaid principal balance with an allowance	297	306
Unpaid principal balance without an allowance	114	119
Consumer portfolio | Residential mortgage
Loan impairment
Recorded investment with an allowance	243	250
Recorded investment without an allowance	72	75
Impaired loans	315	325
Allowance for impaired loans	20	17
Unpaid principal balance with an allowance	257	295
Unpaid principal balance without an allowance	85	89
Consumer portfolio | Home equity and other consumer loans
Loan impairment
Recorded investment with an allowance	38	41
Recorded investment without an allowance	19	20
Impaired loans	57	61
Allowance for impaired loans	0	0
Unpaid principal balance with an allowance	40	11
Unpaid principal balance without an allowance	$ 29	$ 30

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Loans and Allowance for Loan Losses (Details 14) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loan impairment
Average Recorded Investment	$ 785	$ 946
Recognized Interest Income	6	5
Commercial portfolio
Loan impairment
Average Recorded Investment	519	642
Recognized Interest Income	4	2
Commercial portfolio | Commercial and industrial
Loan impairment
Average Recorded Investment	491	624
Recognized Interest Income	4	2
Commercial portfolio | Commercial mortgage
Loan impairment
Average Recorded Investment	18	18
Recognized Interest Income	0	0
Commercial portfolio | Construction
Loan impairment
Average Recorded Investment	10	0
Recognized Interest Income	0	0
Consumer portfolio
Loan impairment
Average Recorded Investment	266	304
Recognized Interest Income	2	3
Consumer portfolio | Residential mortgage
Loan impairment
Average Recorded Investment	237	273
Recognized Interest Income	2	2
Consumer portfolio | Home equity and other consumer loans
Loan impairment
Average Recorded Investment	29	31
Recognized Interest Income	$ 0	$ 1

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Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses (Details 15) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loans disclosures
Transfers of loans from held for investment to held for sale, net	$ (230)	$ (81)
Proceeds from sale	347	49
Commercial portfolio
Loans disclosures
Transfers of loans from held for investment to held for sale, net	(234)	(81)
Proceeds from sale	347	49
Consumer portfolio
Loans disclosures
Transfers of loans from held for investment to held for sale, net	4	0
Proceeds from sale	$ 0	$ 0

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Variable Interest Entities (Details) $ in Millions	Mar. 31, 2017 USD ($) investment	Dec. 31, 2016 USD ($)
Consolidated Assets
Other assets	$ 8,927	$ 8,496
Consolidated Liabilities
Other liabilities	2,383	2,520
Consolidated VIEs
Consolidated Assets
Loans held for investment, net	622	641
Other assets	279	286
Total assets	901	927
Consolidated Liabilities
Other liabilities	54	54
Total Liabilities	54	54
Consolidated VIEs | Low-income housing credit investments
Consolidated Assets
Loans held for investment, net	0	0
Other assets	106	112
Total assets	106	112
Consolidated Liabilities
Other liabilities	0	0
Total Liabilities	$ 0	0
Number of LIHC investment fund | investment	2
Consolidated VIEs | Leasing Investments
Consolidated Assets
Loans held for investment, net	$ 622	641
Other assets	173	174
Total assets	795	815
Consolidated Liabilities
Other liabilities	54	54
Total Liabilities	$ 54	$ 54

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Variable Interest Entities (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Unconsolidated Assets
Interest bearing deposits in banks	$ 3,091		$ 3,844
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)	14,925		14,141
Other Assets	8,927		8,496
Unconsolidated Liabilities
Other liabilities	2,383		2,520
Unconsolidated VIEs
Unconsolidated Assets
Interest bearing deposits in banks	1		1
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)	37		37
Loans Held for Investment	251		239
Other Assets	2,835		2,941
Total Assets	3,124		3,218
Unconsolidated Liabilities
Other liabilities	454		447
Total Liabilities	454		447
Maximum Exposure to Loss	3,171		3,271
Unconsolidated VIEs | LIHC investments
Variable Interest Entities
Liabilities Assumed	19	$ 37
Unconsolidated Assets
Interest bearing deposits in banks	0		0
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)	25		25
Loans Held for Investment	199		168
Other Assets	1,148		1,164
Total Assets	1,372		1,357
Unconsolidated Liabilities
Other liabilities	388		381
Total Liabilities	388		381
Maximum Exposure to Loss	1,372		1,357
Unconsolidated VIEs | Leasing Investments
Unconsolidated Assets
Interest bearing deposits in banks	1		1
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)	12		12
Loans Held for Investment	28		47
Other Assets	1,662		1,751
Total Assets	1,703		1,811
Unconsolidated Liabilities
Other liabilities	66		66
Total Liabilities	66		66
Maximum Exposure to Loss	1,723		1,833
Unconsolidated VIEs | Other investments
Unconsolidated Assets
Interest bearing deposits in banks	0		0
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged)	0		0
Loans Held for Investment	24		24
Other Assets	25		26
Total Assets	49		50
Unconsolidated Liabilities
Other liabilities	0		0
Total Liabilities	0		0
Maximum Exposure to Loss	$ 76		$ 81

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Variable Interest Entities Variable Interest Entities (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other Non Interest Expenses
Noncontrolling Interest [Line Items]
Income (loss) from LIHC Investments	$ 2	$ 2
Income Tax Expense
Noncontrolling Interest [Line Items]
Amortization of LIHC investments	33	30
Tax credits and other tax benefits from LIHC	$ 45	$ 45

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Securities Financing Arrangements (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Derivative assets
Gross Amounts of Recognized Assets/Liabilities	$ 1,502	$ 1,626
Gross Amounts Offset in Balance Sheet	787	770
Net Amounts Presented in Balance Sheet	715	856
Gross Amounts Not Offset In Balance Sheet, Financial Instruments	44	20
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	2	0
Net Amount	669	836
Securities borrowed or purchased under resale agreements
Gross Amounts of Recognized Assets/Liabilities	31,147	31,386
Gross Amounts Offset in Balance Sheet	11,155	11,639
Net Amounts Presented in Balance Sheet	19,992	19,747
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Securities	19,896	19,657
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Cash	0	0
Net Amount	96	90
Total Financial Assets
Gross Amounts of Recognized Assets/Liabilities	32,649	33,012
Gross Amounts Offset in Balance Sheet	11,942	12,409
Net Amounts Presented in Balance Sheet	20,707	20,603
Gross Amounts Not Offset In Balance Sheet, Financial Instruments	19,940	19,677
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	2	0
Net Amount	765	926
Derivative liabilities
Gross Amounts of Recognized Assets/Liabilities	1,533	1,684
Gross Amounts Offset in Balance Sheet	968	1,047
Net Amounts Presented in Balance Sheet	565	637
Gross Amount Not Offset in Balance Sheet, Financial Instruments	170	176
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	5
Net Amount	395	456
Securities loaned or sold under repurchase agreements
Securities sold under agreements to repurchase	36,235	36,255
Securities Sold under Agreements to Repurchase, Asset	11,156	11,639
Net Amounts Presented in Balance Sheet	25,079	24,616
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities	24,470	23,812
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash	0	0
Net Amount	609	804
Total Financial Liabilities
Gross Amounts of Recognized Assets/Liabilities	37,768	37,939
Gross Amounts Offset in Balance Sheet	12,124	12,686
Net Amounts Presented in Balance Sheet	25,644	25,253
Gross Amount Not Offset in Balance Sheet, Financial Instruments	24,640	23,988
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged	0	5
Net Amount	$ 1,004	$ 1,260

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Securities Financing Arrangements (Details 2) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 36,235	$ 36,255
Securities loaned	868	661
Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	718	570
Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	51	0
31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	99	91
Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities loaned	0	0
U.S. Treasury securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	13,584	13,970
U.S. Treasury securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	10,925	11,419
U.S. Treasury securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	1,886	1,523
U.S. Treasury securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	677	712
U.S. Treasury securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	96	316
U.S. agency securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	33	72
U.S. agency securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	30	42
U.S. agency securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	3	30
U.S. agency securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
U.S. agency securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Other sovereign government obligations
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	28	16
Other sovereign government obligations | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	7	0
Other sovereign government obligations | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	20	0
Other sovereign government obligations | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	1	16
Other sovereign government obligations | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Money market securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	72
Money market securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	14
Money market securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	24
Money market securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	34
Money market securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0
Asset-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	30	101
Asset-backed securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	1	20
Asset-backed securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	1	15
Asset-backed securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	28	66
Asset-backed securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Mortgage-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	18,457	17,992
Mortgage-backed securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	9,384	8,792
Mortgage-backed securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	3,701	4,450
Mortgage-backed securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	5,372	4,750
Mortgage-backed securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Corporate bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	2,234	2,114
Securities loaned		8
Corporate bonds | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	379	405
Securities loaned		8
Corporate bonds | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	824	800
Securities loaned		0
Corporate bonds | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	1,031	909
Securities loaned		0
Corporate bonds | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Securities loaned		0
Municipal securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	354	438
Municipal securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	157	74
Municipal securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	54	65
Municipal securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	143	299
Municipal securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Equities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	575	891
Securities loaned	868	653
Equities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	362	452
Securities loaned	718	562
Equities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	49	275
Securities loaned	51	0
Equities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	164	164
Securities loaned	99	91
Equities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Securities loaned	0	0
Trading Securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	35,367	35,594
Trading Securities | Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	21,259	21,204
Trading Securities | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	6,562	7,158
Trading Securities | 31-90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	7,450	6,916
Trading Securities | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 96	$ 316

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Commercial Paper and Other Short-Term Borrowings (Details) ¥ in Billions	3 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2017 JPY (¥)	Dec. 31, 2016 USD ($)
Short-term Debt [Line Items]
Total commercial paper and other short-term borrowings	$ 3,487,000,000		$ 2,360,000,000
MUFG Union Bank N.A
Short-term Debt [Line Items]
Total commercial paper and other short-term borrowings	$ 2,291,000,000		$ 989,000,000
MUFG Union Bank N.A | Federal Funds Purchased
Short-term Debt [Line Items]
Weighted average interest rate at period end	0.72%	0.72%	0.50%
Federal funds purchased	$ 40,000,000		$ 26,000,000
MUFG Union Bank N.A | Commercial Paper
Short-term Debt [Line Items]
Weighted average interest rate at period end	0.71%	0.71%	0.55%
Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively	$ 651,000,000		$ 263,000,000
MUFG Union Bank N.A | Federal Home Loan Bank Advances
Short-term Debt [Line Items]
Weighted average interest rate at period end	0.62%	0.62%	0.59%
Short-term Bank Loans and Notes Payable	$ 1,600,000,000		$ 700,000,000
MUFG Americas Holding Corporation
Short-term Debt [Line Items]
Weighted average interest rate at period end	1.47%	1.47%	0.49%
Short-term Debt Due to Parent	$ 425,000,000		$ 679,000,000
Total commercial paper and other short-term borrowings	1,196,000,000		$ 1,371,000,000
MUFG Americas Holding Corporation | Line of Credit
Short-term Debt [Line Items]
Maximum borrowing capacity	$ 1,400,000,000.0
Line of Credit Facility, Extension Period	100 days
MUFG Americas Holding Corporation | Affiliated Entity
Short-term Debt [Line Items]
Weighted average interest rate at period end	(0.07%)	(0.07%)	(0.04%)
Short term debt due to affiliates	$ 771,000,000	¥ 86	$ 692,000,000

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Long-Term Debt (Details) - USD ($)		3 Months Ended	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument
Long-term debt	$ 11,333,000,000	$ 11,333,000,000	$ 11,410,000,000
Parent Company
Debt Instrument
Long-term debt	6,991,000,000	6,991,000,000	3,470,000,000
Parent Company | Senior Debt Obligations [Member] | Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016
Debt Instrument
Long-term debt	$ 250,000,000	$ 250,000,000	$ 250,000,000
Long-term Debt, Weighted Average Interest Rate	1.61%	1.61%	1.46%
Parent Company | Senior Debt Obligations [Member] | Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.57%	0.57%
Parent Company | Senior Debt Obligations [Member] | Fixed rate 1.625% notes due February 2018
Debt Instrument
Long-term debt	$ 449,000,000	$ 449,000,000	$ 449,000,000
Debt instrument, Fixed interest rate (as a percent)	1.625%	1.625%	1.625%
Parent Company | Senior Debt Obligations [Member] | Fixed rate 2.25% notes due February 2020
Debt Instrument
Long-term debt	$ 997,000,000	$ 997,000,000	$ 997,000,000
Debt instrument, Fixed interest rate (as a percent)	2.25%	2.25%	2.25%
Parent Company | Senior Debt Obligations [Member] | Fixed rate 3.50% notes due June 2022
Debt Instrument
Long-term debt	$ 397,000,000	$ 397,000,000	$ 397,000,000
Debt instrument, Fixed interest rate (as a percent)	3.50%	3.50%	3.50%
Parent Company | Senior Debt Obligations [Member] | Fixed rate 3.00% notes due February 2025
Debt Instrument
Long-term debt	$ 496,000,000	$ 496,000,000	$ 496,000,000
Debt instrument, Fixed interest rate (as a percent)	3.00%	3.00%	3.00%
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017
Debt Instrument
Long-term debt	$ 3,500,000,000	$ 3,500,000,000	$ 0
Proceeds from Issuance of Long-term Debt		$ 3,500,000,000
Long-term Debt, Weighted Average Interest Rate	2.00%	2.00%
Prepayment of long term debt		$ 500,000
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.85%
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017
Debt Instrument
Long-term debt	$ 21,000,000	$ 21,000,000	0
Long-term Debt, Weighted Average Interest Rate	0.76%	0.76%
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.76%
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016
Debt Instrument
Long-term debt	$ 545,000,000	$ 545,000,000	$ 545,000,000
Long-term Debt, Weighted Average Interest Rate	1.99%	1.99%	1.82%
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.86%	0.86%
Parent Company | Subordinated Debt | Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016
Debt Instrument
Long-term debt	$ 300,000,000	$ 300,000,000	$ 300,000,000
Long-term Debt, Weighted Average Interest Rate	2.53%	2.53%	2.38%
Parent Company | Subordinated Debt | Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		1.38%	1.38%
Parent Company | Junior subordinated debt payable to trusts | Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016
Debt Instrument
Long-term debt	$ 36,000,000	$ 36,000,000	$ 36,000,000
Long-term Debt, Weighted Average Interest Rate	2.83%	2.83%	2.66%
MUFG Union Bank N.A
Debt Instrument
Long-term debt	$ 3,060,000,000	$ 3,060,000,000	$ 6,557,000,000
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016
Debt Instrument
Long-term debt	$ 250,000,000	$ 250,000,000	$ 250,000,000
Long-term Debt, Weighted Average Interest Rate	1.43%	1.43%	1.28%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.40%	0.40%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Fixed rate 2.125% notes due June 2017
Debt Instrument
Long-term debt	$ 500,000,000	$ 500,000,000	$ 500,000,000
Debt instrument, Fixed interest rate (as a percent)	2.125%	2.125%	2.125%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Fixed rate 2.625% notes due September 2018
Debt Instrument
Long-term debt	$ 999,000,000	$ 999,000,000	$ 999,000,000
Debt instrument, Fixed interest rate (as a percent)	2.625%	2.625%	2.625%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Fixed rate 2.250% notes due May 2019
Debt Instrument
Long-term debt	$ 500,000,000	$ 500,000,000	$ 500,000,000
Debt instrument, Fixed interest rate (as a percent)	2.25%	2.25%	2.25%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016
Debt Instrument
Long-term debt	$ 0	$ 0	$ 1,000,000,000
Long-term Debt, Weighted Average Interest Rate			1.47%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.85%	0.85%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016
Debt Instrument
Long-term debt	0	$ 0	$ 1,500,000,000
Long-term Debt, Weighted Average Interest Rate			1.49%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		0.87%	0.87%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016
Debt Instrument
Long-term debt	0	$ 0	$ 1,000,000,000
Long-term Debt, Weighted Average Interest Rate			1.65%
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		1.03%	1.03%
MUFG Union Bank N.A | Subordinated Debt | Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016
Debt Instrument
Long-term debt	$ 750,000,000	$ 750,000,000	$ 750,000,000
Long-term Debt, Weighted Average Interest Rate	2.35%	2.35%	2.20%
MUFG Union Bank N.A | Subordinated Debt | Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016 | London Interbank Offered Rate LIBOR
Debt Instrument
Interest rate above variable interest rate (as a percent)		1.20%	1.20%
MUFG Union Bank N.A | Other debt securities, Other
Debt Instrument
Long-term debt	$ 61,000,000	$ 61,000,000	$ 58,000,000
Other Subsidiaries, Excluding MUFG Bank, NA
Debt Instrument
Long-term debt	1,282,000,000	1,282,000,000	1,383,000,000
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016
Debt Instrument
Long-term debt	$ 250,000,000	$ 250,000,000	$ 250,000,000
Long-term Debt, Weighted Average Interest Rate	1.15%	1.15%	0.99%
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016
Debt Instrument
Long-term debt	$ 288,000,000	$ 288,000,000	$ 384,000,000
Long-term Debt, Weighted Average Interest Rate	2.10%	2.10%	2.15%
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 | Minimum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	1.71%	1.71%	1.71%
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 | Maximum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	2.44%	2.44%	2.44%
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	2.68%	2.68%	2.68%
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 | Minimum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	2.61%	2.61%	2.61%
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 | Maximum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	2.77%	2.77%	2.77%
Other Subsidiaries, Excluding MUFG Bank, NA | Subordinated Debt | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016
Debt Instrument
Long-term debt	$ 185,000,000	$ 185,000,000	$ 185,000,000
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016
Debt Instrument
Long-term debt	$ 127,000,000	$ 127,000,000	$ 127,000,000
Long-term Debt, Weighted Average Interest Rate	2.04%	2.04%	1.67%
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 | Minimum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	1.23%	1.23%	0.25%
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 | Maximum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	2.91%	2.91%	2.41%
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016
Debt Instrument
Long-term debt	$ 38,000,000	$ 38,000,000	$ 39,000,000
Long-term Debt, Weighted Average Interest Rate	5.34%	5.34%	5.34%
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016
Debt Instrument
Long-term debt	$ 394,000,000	$ 394,000,000	$ 398,000,000
Long-term Debt, Weighted Average Interest Rate	1.87%	1.87%	2.04%
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 | Minimum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	1.23%	1.23%	0.85%
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 | Maximum
Debt Instrument
Long-term Debt, Weighted Average Interest Rate	2.16%	2.16%	2.73%
MUFG Americas Holding Corporation | MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017
Debt Instrument
Repayments of debt	$ 3,500,000,000

XML

Fair Value Measurement and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions		Mar. 31, 2017		Dec. 31, 2016
Fair value measurements
Trading account assets		$ 8,926		$ 8,942
Securities available for sale		14,920
U.S. Treasury securities
Fair value measurements
Securities available for sale		2,813
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale		7,378
Residential mortgage-backed securities, Privately issued
Fair value measurements
Securities available for sale		426
Collateralized loan obligations
Fair value measurements
Securities available for sale		1,997
Other Asset Liability Management Securities
Fair value measurements
Securities available for sale		7
Other debt securities, Direct bank purchase bonds
Fair value measurements
Securities available for sale		1,543
Other debt securities, Other
Fair value measurements
Securities available for sale		93
Fair Value, Measurements, Recurring
Fair value measurements
Netting Adjustment		$ (787)	[1]	$ (770)	[2]
Percentage of Total		100.00%		100.00%
Netting Adjustment		(3.00%)	[1]	(3.00%)	[2]
Percentage of Total Company Assets		15.00%		15.00%
Netting Adjustment		(1.00%)	[1]	(1.00%)	[2]
Netting Adjustment		$ (968)	[1]	$ (1,047)	[2]
Percentage of Total		100.00%		100.00%
Netting Adjustment		(29.00%)	[1]	(34.00%)	[2]
Percentage of Total Company Liabilities		2.00%		2.00%
Netting Adjustment		(1.00%)	[1]	(1.00%)	[2]
Fair Value, Measurements, Recurring | Interest rate derivative contracts
Fair value measurements
Netting Adjustment		$ (361)	[1]	$ (343)	[2]
Netting Adjustment		(665)	[1]	(718)	[2]
Fair Value, Measurements, Recurring | Commodity derivative contracts
Fair value measurements
Netting Adjustment		(124)	[1]	(106)	[2]
Netting Adjustment		(55)	[1]	(68)	[2]
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts
Fair value measurements
Netting Adjustment		(119)	[1]	(138)	[2]
Netting Adjustment		(18)	[1]	(33)	[2]
Fair Value, Measurements, Recurring | Equity Derivative contracts
Fair value measurements
Netting Adjustment		(165)	[1]	(163)	[2]
Netting Adjustment	[1]	0
Fair Value, Measurements, Recurring | Trading Securities
Fair value measurements
Netting Adjustment		(769)	[1]	(750)	[2]
Netting Adjustment		(738)	[1]	(819)	[2]
Fair Value, Measurements, Recurring | Other Asset Liability Management Securities
Fair value measurements
Netting Adjustment		(18)	[1]	(20)	[2]
Fair Value, Measurements, Recurring | Interest rate hedging contracts
Fair value measurements
Netting Adjustment		(5)	[1]	(20)	[2]
Netting Adjustment		(230)	[1]	(199)	[2]
Fair Value, Measurements, Recurring | Other derivative contracts
Fair value measurements
Netting Adjustment		(13)	[1]	0	[2]
Netting Adjustment		0	[1]	(29)	[2]
Fair Value, Measurements, Recurring | Derivative
Fair value measurements
Netting Adjustment		(230)	[1]	(228)	[2]
Fair Value, Measurements, Recurring | Level 1
Fair value measurements
Trading account assets		47		94
Securities available for sale		5		5
Other assets		0
Total assets		$ 52		$ 99
Percentage of Total		0.00%		0.00%
Percentage of Total Company Assets		0.00%		0.00%
Trading account liabilities		$ 46		$ 49
Total liabilities		$ 46		$ 49
Percentage of Total		1.00%		2.00%
Percentage of Total Company Liabilities		0.00%		0.00%
Fair Value, Measurements, Recurring | Level 1 | Equities
Fair value measurements
Trading account assets		$ 42		$ 85
Securities available for sale		5		5
Trading account liabilities		42		47
Fair Value, Measurements, Recurring | Level 1 | Interest rate derivative contracts
Fair value measurements
Trading account assets		4		7
Trading account liabilities		3		1
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange derivative contracts
Fair value measurements
Trading account assets		1		1
Trading account liabilities		1		1
Fair Value, Measurements, Recurring | Level 1 | Equity Derivative contracts
Fair value measurements
Trading account assets		0		1
Fair Value, Measurements, Recurring | Level 1 | Other derivative contracts
Fair value measurements
Other assets		0
Fair Value, Measurements, Recurring | Level 2
Fair value measurements
Trading account assets		9,476		9,430
Securities available for sale		13,351		12,498
Other assets		23		24
Total assets		$ 22,850		$ 21,952
Percentage of Total		96.00%		95.00%
Percentage of Total Company Assets		15.00%		15.00%
Trading account liabilities		$ 3,757		$ 3,509
Other liabilities		230		283
Total liabilities		$ 3,987		$ 3,792
Percentage of Total		119.00%		123.00%
Percentage of Total Company Liabilities		3.00%		3.00%
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities
Fair value measurements
Trading account assets		$ 1,902		$ 1,730
Securities available for sale		2,813		2,505
Trading account liabilities		2,113		1,973
Fair Value, Measurements, Recurring | Level 2 | U.S. government-sponsored agencies
Fair value measurements
Trading account assets		121		73
Fair Value, Measurements, Recurring | Level 2 | State and municipal
Fair value measurements
Trading account assets		8		18
Trading account liabilities		10
Fair Value, Measurements, Recurring | Level 2 | Commercial Paper
Fair value measurements
Trading account assets		75		1
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds
Fair value measurements
Trading account assets		1,273		841
Fair Value, Measurements, Recurring | Level 2 | Corporate Debt Securities
Fair value measurements
Trading account liabilities		474		298
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities
Fair value measurements
Trading account assets		183		106
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed securities
Fair value measurements
Trading account assets		4,582		5,221
Fair Value, Measurements, Recurring | Level 2 | Interest rate derivative contracts
Fair value measurements
Trading account assets		984		1,065
Trading account liabilities		922		987
Fair Value, Measurements, Recurring | Level 2 | Commodity derivative contracts
Fair value measurements
Trading account assets		132		144
Trading account liabilities		104		111
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange derivative contracts
Fair value measurements
Trading account assets		185		215
Trading account liabilities		99		129
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale		7,378		6,695
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities, Privately issued
Fair value measurements
Securities available for sale		426		327
Fair Value, Measurements, Recurring | Level 2 | Privately issued commercial mortgage-backed securities
Fair value measurements
Securities available for sale		663		664
Fair Value, Measurements, Recurring | Level 2 | Collateralized loan obligations
Fair value measurements
Securities available for sale		1,997		2,218
Fair Value, Measurements, Recurring | Level 2 | Other Asset Liability Management Securities
Fair value measurements
Securities available for sale		7		7
Fair Value, Measurements, Recurring | Level 2 | Other debt securities, Other
Fair value measurements
Trading account assets		31		16
Securities available for sale		67		82
Trading account liabilities		35		11
Fair Value, Measurements, Recurring | Level 2 | Interest rate hedging contracts
Fair value measurements
Other assets		7		22
Other liabilities		230		199
Fair Value, Measurements, Recurring | Level 2 | Other derivative contracts
Fair value measurements
Other assets		16		2
Other liabilities		0		84
Fair Value, Measurements, Recurring | Level 3
Fair value measurements
Trading account assets		172		168
Securities available for sale		1,569		1,638
Other assets		35		24
Total assets		$ 1,776		$ 1,830
Percentage of Total		7.00%		8.00%
Percentage of Total Company Assets		1.00%		1.00%
Trading account liabilities		$ 168		$ 166
FDIC clawback liability		113		115
Other liabilities		119		121
Total liabilities		$ 287		$ 287
Percentage of Total		9.00%		9.00%
Percentage of Total Company Liabilities		0.00%		0.00%
Fair Value, Measurements, Recurring | Level 3 | Interest rate derivative contracts
Fair value measurements
Trading account assets		$ 2		$ 2
Fair Value, Measurements, Recurring | Level 3 | Commodity derivative contracts
Fair value measurements
Trading account assets		1		1
Trading account liabilities		0		1
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange derivative contracts
Fair value measurements
Trading account assets		1		1
Trading account liabilities		1		1
Fair Value, Measurements, Recurring | Level 3 | Equity Derivative contracts
Fair value measurements
Trading account assets		168		164
Trading account liabilities		167		164
Fair Value, Measurements, Recurring | Level 3 | Other debt securities, Direct bank purchase bonds
Fair value measurements
Securities available for sale		1,543		1,613
Fair Value, Measurements, Recurring | Level 3 | Other debt securities, Other
Fair value measurements
Securities available for sale		26		25
Fair Value, Measurements, Recurring | Level 3 | Mortgage servicing rights
Fair value measurements
Other assets		34		23
Fair Value, Measurements, Recurring | Level 3 | Other derivative contracts
Fair value measurements
Other assets		1		1
Other liabilities		6		6
Fair Value, Measurements, Recurring | Fair Value
Fair value measurements
Trading account assets		8,926		8,942
Securities available for sale		14,925		14,141
Other assets		40		28
Total assets		23,891		23,111
Trading account liabilities		3,233		2,905
FDIC clawback liability		113		115
Other liabilities		119		176
Total liabilities		3,352		3,081
Fair Value, Measurements, Recurring | Fair Value | U.S. Treasury securities
Fair value measurements
Trading account assets		1,902		1,730
Securities available for sale		2,813		2,505
Trading account liabilities		2,113		1,973
Fair Value, Measurements, Recurring | Fair Value | U.S. government-sponsored agencies
Fair value measurements
Trading account assets		121		73
Fair Value, Measurements, Recurring | Fair Value | State and municipal
Fair value measurements
Trading account assets		8		18
Trading account liabilities		10
Fair Value, Measurements, Recurring | Fair Value | Commercial Paper
Fair value measurements
Trading account assets		75		1
Fair Value, Measurements, Recurring | Fair Value | Corporate bonds
Fair value measurements
Trading account assets		1,273		841
Fair Value, Measurements, Recurring | Fair Value | Corporate Debt Securities
Fair value measurements
Trading account liabilities		474		298
Fair Value, Measurements, Recurring | Fair Value | Asset-backed securities
Fair value measurements
Trading account assets		183		106
Fair Value, Measurements, Recurring | Fair Value | Mortgage-backed securities
Fair value measurements
Trading account assets		4,582		5,221
Fair Value, Measurements, Recurring | Fair Value | Equities
Fair value measurements
Trading account assets		42		85
Securities available for sale		5		5
Trading account liabilities		42		47
Fair Value, Measurements, Recurring | Fair Value | Interest rate derivative contracts
Fair value measurements
Trading account assets		629		731
Trading account liabilities		260		270
Fair Value, Measurements, Recurring | Fair Value | Commodity derivative contracts
Fair value measurements
Trading account assets		9		39
Trading account liabilities		49		44
Fair Value, Measurements, Recurring | Fair Value | Foreign exchange derivative contracts
Fair value measurements
Trading account assets		68		79
Trading account liabilities		83		98
Fair Value, Measurements, Recurring | Fair Value | Equity Derivative contracts
Fair value measurements
Trading account assets		3		2
Trading account liabilities		167		164
Fair Value, Measurements, Recurring | Fair Value | Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies
Fair value measurements
Securities available for sale		7,378		6,695
Fair Value, Measurements, Recurring | Fair Value | Residential mortgage-backed securities, Privately issued
Fair value measurements
Securities available for sale		426		327
Fair Value, Measurements, Recurring | Fair Value | Privately issued commercial mortgage-backed securities
Fair value measurements
Securities available for sale		663		664
Fair Value, Measurements, Recurring | Fair Value | Collateralized loan obligations
Fair value measurements
Securities available for sale		1,997		2,218
Fair Value, Measurements, Recurring | Fair Value | Other Asset Liability Management Securities
Fair value measurements
Securities available for sale		7		7
Fair Value, Measurements, Recurring | Fair Value | Other debt securities, Direct bank purchase bonds
Fair value measurements
Securities available for sale		1,543		1,613
Fair Value, Measurements, Recurring | Fair Value | Other debt securities, Other
Fair value measurements
Trading account assets		31		16
Securities available for sale		93		107
Trading account liabilities		35		11
Fair Value, Measurements, Recurring | Fair Value | Mortgage servicing rights
Fair value measurements
Other assets		34		23
Fair Value, Measurements, Recurring | Fair Value | Interest rate hedging contracts
Fair value measurements
Other assets		2		2
Other liabilities				0
Fair Value, Measurements, Recurring | Fair Value | Other derivative contracts
Fair value measurements
Other assets		4		3
Other liabilities		$ 6		$ 61

[1] Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

[2] Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

XML

Fair Value Measurement and Fair Value of Financial Instruments (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Trading derivatives
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset (liability) balance, beginning of period	$ (166)	$ (223)
Included in income before taxes	(28)	17
Sales	0	0
Settlements	26	19
Asset (liability) balance, end of period	(168)	(187)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	(28)	17
Other Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset (liability) balance, beginning of period	(121)	(114)
Included in income before taxes	2	(2)
Asset (liability) balance, end of period	(119)	(116)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	2	(2)
Trading derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset (liability) balance, beginning of period	168	228
Included in income before taxes	30	(18)
Purchases/additions	0	0
Settlements	(26)	(21)
Asset (liability) balance, end of period	172	189
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	30	(18)
Securities Available for Sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset (liability) balance, beginning of period	1,638	1,603
Included in other comprehensive income	3	(2)
Purchases/additions	1	78
Settlements	(73)	(66)
Asset (liability) balance, end of period	1,569	1,613
Other assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Asset (liability) balance, beginning of period	24	1
Included in income before taxes	0	1
Purchases/additions	11
Transfers in (out) of level 3	0	13
Asset (liability) balance, end of period	35	15
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$ 0	$ 1

XML

Fair Value Measurement and Fair Value of Financial Instruments (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Unobservable Input(s) Level 3
Securities available for sale	$ 14,925	$ 14,141
Other debt securities, Direct bank purchase bonds
Unobservable Input(s) Level 3
Securities available for sale	$ 1,543	$ 1,613
Other debt securities, Direct bank purchase bonds | Minimum | Return on equity
Unobservable Input(s) Level 3
Market-required return on capital (as a percent)	8.00%
Probability of default (as a percent)	0.00%
Loss severity (as a percent)	10.00%
Other debt securities, Direct bank purchase bonds | Maximum | Return on equity
Unobservable Input(s) Level 3
Market-required return on capital (as a percent)	10.00%
Probability of default (as a percent)	25.00%
Loss severity (as a percent)	60.00%
Other debt securities, Direct bank purchase bonds | Weighted Average | Return on equity
Unobservable Input(s) Level 3
Market-required return on capital (as a percent)	9.70%
Probability of default (as a percent)	0.30%
Loss severity (as a percent)	28.50%
Other debt securities, Direct bank purchase bonds | Level 3
Unobservable Input(s) Level 3
Securities available for sale	$ 1,543

XML

Fair Value Measurement and Fair Value of Financial Instruments (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Loans:
Impaired loans	$ 1,010		$ 1,022
Loss Impaired loans	(16)	$ (127)
Computer Software, Impairments	(3)
Impairment of Premises and Equipment		(4)
Other assets:
Impairment of Loans Held for Sale	(2)	(3)
Gain (Loss) on Energy Investments	2
Loss on OREO		(1)
Loss on Private equity investments		(12)
Impairment of Intangible Assets, Finite-lived		(1)
Loss, Total	(19)	(148)
Fair Value Measurements, Nonrecurring
Loans:
Impaired loans	139	375
Property, Plant, and Equipment, Fair Value Disclosure		0
Other assets:
Loans Held-for-sale, Fair Value Disclosure	15	5
Renewable energy investment	9
OREO		2
Private Equity Investments		10
Finite-lived Intangible Assets, Fair Value Disclosure		0
Total	163	392
Fair Value Measurements, Nonrecurring | Level 3
Loans:
Impaired loans	139	375
Capitalized Computer Software, Gross	0
Property, Plant, and Equipment, Fair Value Disclosure		0
Other assets:
Loans Held-for-sale, Fair Value Disclosure	15	5
Renewable energy investment	9
OREO		2
Private Equity Investments		10
Finite-lived Intangible Assets, Fair Value Disclosure		0
Total	$ 163	$ 392

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Fair Value Measurement and Fair Value of Financial Instruments (Details 5) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Assets
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		$ 19,992	$ 19,747
Fair value of securities held to maturity		10,348	10,316
Liabilities
Securities loaned or sold under repurchase agreements		25,079	24,616
Level 1
Assets
Cash and cash equivalents		4,827	5,753
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		0	0
Fair value of securities held to maturity		0	0
Loans held for investment, net of allowance for loan losses		0	0
Liabilities
Deposits		0	0
Commercial paper and other short-term borrowings		0	0
Securities loaned or sold under repurchase agreements		0	0
Long-term debt		0	0
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit		0	0
Level 2
Assets
Cash and cash equivalents		0	0
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		19,992	19,747
Fair value of securities held to maturity		10,348	10,316
Loans held for investment, net of allowance for loan losses		0	0
Liabilities
Deposits		86,519	86,930
Commercial paper and other short-term borrowings		3,487	2,360
Securities loaned or sold under repurchase agreements		25,079	24,616
Long-term debt		11,348	11,411
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit		0	0
Level 3
Assets
Cash and cash equivalents		0	0
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		0	0
Fair value of securities held to maturity		0	0
Loans held for investment, net of allowance for loan losses	[1]	77,234	76,257
Liabilities
Deposits		0	0
Commercial paper and other short-term borrowings		0	0
Securities loaned or sold under repurchase agreements		0	0
Long-term debt		0	0
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit		202	221
Carrying Amount
Assets
Cash and cash equivalents		4,827	5,753
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		19,992	19,747
Fair value of securities held to maturity		10,374	10,337
Loans held for investment, net of allowance for loan losses	[1]	76,105	75,112
Liabilities
Deposits		86,533	86,947
Commercial paper and other short-term borrowings		3,487	2,360
Securities loaned or sold under repurchase agreements		25,079	24,616
Long-term debt		11,333	11,410
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit		202	221
Fair Value
Assets
Cash and cash equivalents		4,827	5,753
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		19,992	19,747
Fair value of securities held to maturity		10,348	10,316
Loans held for investment, net of allowance for loan losses	[1]	77,234	76,257
Liabilities
Deposits		86,519	86,930
Commercial paper and other short-term borrowings		3,487	2,360
Securities loaned or sold under repurchase agreements		25,079	24,616
Long-term debt		11,348	11,411
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit		$ 202	$ 221

[1] Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses.

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Derivative Instruments and Other Financial Instruments Used For Hedging (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	$ 170,705		$ 177,428
Gross Amounts of Recognized Assets/Liabilities	1,502		1,626
Gross Amounts of Recognized Assets/Liabilities	1,533		1,684
Not designated as hedging instruments | Trading derivatives
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	155,958		160,424
Gross Amounts of Recognized Assets/Liabilities	1,478		1,601
Gross Amounts of Recognized Assets/Liabilities	1,297		1,395
Not designated as hedging instruments | Other risk management
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	1,003		1,045
Gross Amounts of Recognized Assets/Liabilities	17		3
Gross Amounts of Recognized Assets/Liabilities	6		90
Net gains (losses) on derivatives included in other noninterest income	4	$ (2)
Interest rate derivative contracts | Not designated as hedging instruments | Trading derivatives
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	145,724		149,229
Gross Amounts of Recognized Assets/Liabilities	990		1,074
Gross Amounts of Recognized Assets/Liabilities	925		988
Interest rate derivative contracts | Cash Flow Hedges | Designated as Hedging Instrument
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	13,244		15,459
Gross Amounts of Recognized Assets/Liabilities	6		19
Gross Amounts of Recognized Assets/Liabilities	230		199
Interest rate derivative contracts | Fair value hedges | Designated as Hedging Instrument
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	500		500
Gross Amounts of Recognized Assets/Liabilities	1		3
Gross Amounts of Recognized Assets/Liabilities	0		0
Commodity derivative contracts | Not designated as hedging instruments | Trading derivatives
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	2,462		2,825
Gross Amounts of Recognized Assets/Liabilities	133		145
Gross Amounts of Recognized Assets/Liabilities	104		112
Foreign exchange derivative contracts | Not designated as hedging instruments | Trading derivatives
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	5,756		5,981
Gross Amounts of Recognized Assets/Liabilities	187		217
Gross Amounts of Recognized Assets/Liabilities	101		131
Equity Derivative contracts | Not designated as hedging instruments | Trading derivatives
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	1,995		2,385
Gross Amounts of Recognized Assets/Liabilities	168		165
Gross Amounts of Recognized Assets/Liabilities	167		164
Other derivative contracts | Not designated as hedging instruments | Trading derivatives
Derivative Instruments and Other Financial Instruments
Derivative Notional Amount	21		$ 4
Gross Amounts of Recognized Assets/Liabilities	0
Gross Amounts of Recognized Assets/Liabilities	$ 0

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Derivative Instruments and Other Financial Instruments Used For Hedging (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Cash flow hedges
Derivative Notional Amount	$ 170,705		$ 177,428
Income from accumulated other comprehensive income expected to be reclassified to net interest income	$ 47
Cash Flow Hedges
Cash flow hedges
Weighted average remaining life of the currently active cash flow hedges	3 years 10 months 2 days
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ (19)	$ 261
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	29	42
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	2	1
Cash Flow Hedges | Interest rate derivative contracts
Cash flow hedges
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(19)	261
Cash Flow Hedges | Interest rate derivative contracts | Interest income
Cash flow hedges
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	29	42
Cash Flow Hedges | Interest rate derivative contracts | Interest expense
Cash flow hedges
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	0
Cash Flow Hedges | Interest rate derivative contracts | Noninterest expense
Cash flow hedges
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	2	$ 1
Cash Flow Hedges | Designated as Hedging Instrument | Interest rate derivative contracts
Cash flow hedges
Derivative Notional Amount	13,244		$ 15,459
Cash Flow Hedges | Designated as Hedging Instrument | Libor Indexed Loans | Interest rate swap contracts
Cash flow hedges
Derivative Notional Amount	13,000
Cash Flow Hedges | Designated as Hedging Instrument | Libor Indexed Short Term Borrowings | Interest rate swap contracts
Cash flow hedges
Derivative Notional Amount	$ 294

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Derivative Instruments and Other Financial Instruments Used For Hedging (Details 3) - Fair value hedges - Interest rate derivative contracts - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Amount and location of net gains and losses
Derivative	$ (2)	$ 7
Hedged Item	1	(7)
Hedge Ineffectiveness	(1)	0
Designated as Hedging Instrument
Amount and location of net gains and losses
Derivative	(2)	7
Hedged Item	1	(7)
Hedge Ineffectiveness	$ (1)	$ 0

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Derivative Instruments and Other Financial Instruments Used For Hedging (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Trading Derivatives
Trading account activities	$ (4)	$ 28
Trading Derivatives
Trading Derivatives
Trading account activities	(12)	0
Trading Derivatives | Interest rate derivative contracts
Trading Derivatives
Trading account activities	(22)	(9)
Trading Derivatives | Foreign exchange derivative contracts
Trading Derivatives
Trading account activities	$ 10	$ 9

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Unrealized net gains (losses) on hedges arising during the period, before tax		$ (19)	$ 261
Unrealized net gains (losses) on hedges arising during the period, tax		7	(103)
Unrealized net gains (losses) on hedges arising during the period, net of tax		(12)	158
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, before tax		(29)	(42)
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, tax		11	16
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, net of tax		(18)	(26)
Net change, before tax		(48)	219
Net change, tax		18	(87)
Net change, net of tax		(30)	132
Unrealized holding gains (losses) arising during the period on securities available for sale, before tax		56	157
Unrealized holding gains (losses) arising during the period on securities available for sale, tax		(23)	(62)
Unrealized holding gains (losses) arising during the period on securities available for sale, net of tax		33	95
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, before tax		(2)	(13)
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, tax		1	5
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, net of tax		(1)	(8)
Amortization of net unrealized (gains) losses on held to maturity securities, before tax		5	5
Amortization of net unrealized (gains) losses on held to maturity securities, tax		(2)	(2)
Amortization of net unrealized (gains) losses on held to maturity securities, net of tax		3	3
Net change, before tax		59	149
Net change, tax		(24)	(59)
Net change, net of tax		35	90
Foreign currency translation adjustment, before tax		1	7
Foreign currency translation adjustment, tax		0	(3)
Foreign currency translation adjustment, net of tax		1	4
Amortization of prior service credit, before tax	[1]	(12)	(6)
Amortization of prior service credit, tax	[1]	5	3
Amortization of prior service credit, net of tax	[1]	(7)	(3)
Recognized net actuarial (gain) loss, before tax	[1]	23	22
Recognized net actuarial (gain) loss, tax	[1]	(9)	(9)
Recognized net actuarial (gain) loss, net of tax	[1]	14	13
Net change, before tax		11	16
Net change, tax		(4)	(6)
Net change, net of tax		7	10
Other, before tax			(2)
Other, tax			0
Other, Net of Tax		0	(2)
Net change in AOCI, before tax		23	389
Net change in AOCI, tax		(10)	(155)
Net change in AOCI, net of tax		$ 13	$ 234

[1] These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.(Dollars in millions) BeforeTaxAmount TaxEffect Net ofTaxFor the Three Months Ended March 31, 2016 Cash flow hedge activities: Unrealized net gains (losses) on hedges arising during the period $261 $(103) $158Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt (42) 16 (26)Net change 219 (87) 132Securities: Unrealized holding gains (losses) arising during the period on securities available for sale 157 (62) 95Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net (13) 5 (8)Amortization of net unrealized (gains) losses on held to maturity securities 5 (2) 3Net change 149 (59) 90Foreign currency translation adjustment 7 (3) 4Pension and other benefits: Amortization of prior service credit (1) (6) 3 (3) Recognized net actuarial (gain) loss(1) 22 (9) 13Net change 16 (6) 10Other (2) — (2)Net change in AOCI $389 $(155) $234

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Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Change in accumulated other comprehensive loss balances:
Beginning Balance	$ 17,233
Ending Balance	17,484
Net Unrealized Gains (Losses) on Cash Flow Hedges
Change in accumulated other comprehensive loss balances:
Beginning Balance	(77)	$ 38
Other comprehensive income (loss) before reclassifications	(12)	158
Amounts reclassified from AOCI	(18)	(26)
Ending Balance	(107)	170
Net Unrealized Gains (Losses) on Securities
Change in accumulated other comprehensive loss balances:
Beginning Balance	(208)	(152)
Other comprehensive income (loss) before reclassifications	36	98
Amounts reclassified from AOCI	(1)	(8)
Ending Balance	(173)	(62)
Foreign Currency Translation Adjustment
Change in accumulated other comprehensive loss balances:
Beginning Balance	(22)	(24)
Other comprehensive income (loss) before reclassifications	1	4
Amounts reclassified from AOCI	0	0
Ending Balance	(21)	(20)
Pension and Other Benefits Adjustment
Change in accumulated other comprehensive loss balances:
Beginning Balance	(589)	(612)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from AOCI	7	10
Ending Balance	(582)	(602)
Accumulated Other
Change in accumulated other comprehensive loss balances:
Beginning Balance	0	0
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from AOCI	0	(2)
Ending Balance	0	(2)
Accumulated Other Comprehensive Loss
Change in accumulated other comprehensive loss balances:
Beginning Balance	(896)	(750)
Other comprehensive income (loss) before reclassifications	25	260
Amounts reclassified from AOCI	(12)	(26)
Ending Balance	$ (883)	$ (516)

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Employee Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Pension Benefits
Components of net periodic benefit cost:
Service cost	$ 19	$ 23
Interest cost	25	26
Expected return on plan assets	(64)	(60)
Amortization of prior service cost	(7)	(4)
Recognized net actuarial loss	19	19
Total net periodic benefit cost	(8)	4
Other Postretirement Benefits
Components of net periodic benefit cost:
Service cost	2	2
Interest cost	2	3
Expected return on plan assets	(5)	(5)
Amortization of prior service cost	(5)	(2)
Recognized net actuarial loss	3	2
Total net periodic benefit cost	(3)	0
Superannuation, SERP and ESBP
Components of net periodic benefit cost:
Service cost	0	1
Interest cost	1	0
Expected return on plan assets	0	0
Amortization of prior service cost	0	0
Recognized net actuarial loss	1	1
Total net periodic benefit cost	$ 2	$ 2

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Commitments, Contingencies and Guarantees (Details) $ in Millions	Mar. 31, 2017 USD ($)
Commitments to extend credit
Commitment, Contingencies and Guarantees disclosures
Commitments	$ 30,976
Issued standby and commercial letters of credit
Commitment, Contingencies and Guarantees disclosures
Commitments	5,770
Resale agreements
Commitment, Contingencies and Guarantees disclosures
Commitments	502
Other commitments
Commitment, Contingencies and Guarantees disclosures
Commitments	$ 1,605

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Commitments, Contingencies and Guarantees (Details 2) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($) facility
Guarantee disclosures
Committed facilities to provide collateralized financing to third parties | facility	3
Collateralized Financings	$ 1,400
Financial guarantee | Interest rate swap contracts
Guarantee disclosures
Current exposure to loss	13
Future exposure to loss	$ 42
Issued standby and commercial letters of credit
Guarantee disclosures
Maximum term	1 year
Carrying value	$ 3
Affiliated Entity
Guarantee disclosures
Collateralized Financings	$ 250

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Business Segments (Details) $ in Billions	3 Months Ended
	Mar. 31, 2017 USD ($) business_line branch segment
Business segments
Reportable segments | segment	5
Consumer and Business Banking Division
Business segments
Number of full-service branches | branch	352
Regional Bank
Business segments
Major business lines | business_line	5
U.S. Wholesale Banking | Minimum
Business segments
Corporate customers revenues	$ 1.0
Commercial Banking | Regional Bank
Business segments
Commercial banking customer revenues	$ 1.0

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Business Segments (Details 2) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017		Mar. 31, 2016		Dec. 31, 2016
Business segments
Net interest income (expense)	[1]	$ 795		$ 724
Noninterest income (expense)	[1]	488		474
Total revenue	[1]	1,283		1,198
Noninterest expense	[1]	1,006		968
(Reversal of) provision for credit losses	[1]	(30)		162
Income before income taxes and including noncontrolling interests	[1]	307		68
Income tax expense (benefit)	[1]	83		18
Net Income Including Noncontrolling Interests	[1]	224		50
Deduct: net loss from noncontrolling interests	[1]	5		12
Net Income Attributable to MUAH	[1]	229		62
Total assets, end of period		149,678	[1]	156,554	[1]	$ 148,144
Operating segments | Regional Bank
Business segments
Net interest income (expense)	[1]	498		475
Noninterest income (expense)	[1]	112		114
Total revenue	[1]	610		589
Noninterest expense	[1]	502		441
(Reversal of) provision for credit losses	[1]	2		(2)
Income before income taxes and including noncontrolling interests	[1]	106		150
Income tax expense (benefit)	[1]	23		42
Net Income Including Noncontrolling Interests	[1]	83		108
Net Income Attributable to MUAH	[1]	83		108
Total assets, end of period	[1]	63,950		62,190
Operating segments | U.S. Wholesale Banking
Business segments
Net interest income (expense)	[1]	87		107
Noninterest income (expense)	[1]	104		29
Total revenue	[1]	191		136
Noninterest expense	[1]	53		49
(Reversal of) provision for credit losses	[1]	0		130
Income before income taxes and including noncontrolling interests	[1]	138		(43)
Income tax expense (benefit)	[1]	55		(17)
Net Income Including Noncontrolling Interests	[1]	83		(26)
Net Income Attributable to MUAH	[1]	83		(26)
Total assets, end of period	[1]	11,179		15,173
Operating segments | Transaction Banking
Business segments
Net interest income (expense)	[1]	137		113
Noninterest income (expense)	[1]	39		46
Total revenue	[1]	176		159
Noninterest expense	[1]	111		120
(Reversal of) provision for credit losses	[1]	0		2
Income before income taxes and including noncontrolling interests	[1]	65		37
Income tax expense (benefit)	[1]	26		14
Net Income Including Noncontrolling Interests	[1]	39		23
Net Income Attributable to MUAH	[1]	39		23
Total assets, end of period	[1]	2,094		2,522
Operating segments | Investment Banking & Markets
Business segments
Net interest income (expense)	[1]	42		56
Noninterest income (expense)	[1]	79		47
Total revenue	[1]	121		103
Noninterest expense	[1]	59		58
(Reversal of) provision for credit losses	[1]	(10)		31
Income before income taxes and including noncontrolling interests	[1]	72		14
Income tax expense (benefit)	[1]	(3)		(19)
Net Income Including Noncontrolling Interests	[1]	75		33
Deduct: net loss from noncontrolling interests	[1]			1
Net Income Attributable to MUAH	[1]	75		34
Total assets, end of period	[1]	13,778		14,556
Operating segments | MUSA
Business segments
Net interest income (expense)	[1]	59		25
Noninterest income (expense)	[1]	84		71
Total revenue	[1]	143		96
Noninterest expense	[1]	105		86
(Reversal of) provision for credit losses	[1]	0		0
Income before income taxes and including noncontrolling interests	[1]	38		10
Income tax expense (benefit)	[1]	15		4
Net Income Including Noncontrolling Interests	[1]	23		6
Net Income Attributable to MUAH	[1]	23		6
Total assets, end of period	[1]	30,472		32,961
Segment Reconciling Items
Business segments
Net interest income (expense)	[1]	(28)		(52)
Noninterest income (expense)	[1]	70		167
Total revenue	[1]	42		115
Noninterest expense	[1]	176		214
(Reversal of) provision for credit losses	[1]	(22)		1
Income before income taxes and including noncontrolling interests	[1]	(112)		(100)
Income tax expense (benefit)	[1]	(33)		(6)
Net Income Including Noncontrolling Interests	[1]	(79)		(94)
Deduct: net loss from noncontrolling interests	[1]	5		11
Net Income Attributable to MUAH	[1]	(74)		(83)
Total assets, end of period	[1]	$ 28,205		$ 29,152

[1] The transferred IHC entities are not measured using a "market view" perspective.

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Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Assets [Abstract]
Cash and cash equivalents	$ 4,827	$ 8,560	$ 5,753	$ 4,807
Securities borrowed or purchased under resale agreements	19,992		19,747
Other assets	8,927		8,496
Liabilities
Securities loaned or sold under repurchase agreements	25,079		24,616
Commercial paper and other short-term borrowings	3,487		2,360
Other Liabilities	2,383		2,520
Interest and Dividend Income, Operating [Abstract]
Securities borrowed or purchased under resale agreements	63	50
Interest Expense
Commercial paper and other short-term borrowings	8	3
Long-term debt	57	73
Securities loaned or sold under repurchase agreements	59	32
Noninterest Income
Fees from affiliates	219	212
Noninterest Expense
Other Noninterest Expense	120	129
Transferred Entities | Affiliated Entity
Assets [Abstract]
Cash and cash equivalents	105		102
Securities borrowed or purchased under resale agreements	2,386		2,765
Other assets	190		161
Liabilities
Related Party Deposit Liabilities	661		623
Securities loaned or sold under repurchase agreements	597		385
Commercial paper and other short-term borrowings	1,196		1,372
Long-term debt	5,966		6,042
Other Liabilities	124		$ 63
Interest and Dividend Income, Operating [Abstract]
Securities borrowed or purchased under resale agreements	7	6
Interest Expense
Commercial paper and other short-term borrowings	2	6
Long-term debt	28	7
Securities loaned or sold under repurchase agreements	1	0
Noninterest Income
Fees from affiliates	219	212
Other, net	2	0
Noninterest Expense
Other Noninterest Expense	$ 25	$ 24

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Related Party Transactions (Details 2) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Derivative notional amount	$ 170,705,000,000	$ 177,428,000,000
Transferred Entities
Related Party Transaction [Line Items]
Derivative notional amount	1,500,000,000	1,600,000,000
Accumulated unrealized gain on derivatives	76,000,000	72,000,000
Transferred Entities | Affiliated Entity
Related Party Transaction [Line Items]
Guaranteed balance	1,000,000	$ 0
Transferred Entities | Unsecured Debt
Related Party Transaction [Line Items]
Maximum borrowing capacity	1,900,000,000
Transferred Entities | Secured Debt | Affiliated Entity
Related Party Transaction [Line Items]
Maximum borrowing capacity	$ 475,000,000