UnionBanCal Corporation Reports First Quarter Earnings Per Share of $1.07

  
    
  
  
    
      UnionBanCal Corporation (NYSE:UB):
    
    First Quarter 2007 Highlights:

-- Strong year-over-year organic loan growth
    -- Average total loans up 13 percent
    -- Average core commercial loans, which exclude loans to title
        and escrow companies, up 14 percent
-- Annualized average all-in cost of funds of 2.55 percent
-- Average noninterest bearing deposits comprised 36.4 percent of
    average total deposits
-- Nonperforming assets just 0.08 percent of total assets at
   quarter-end
    
      UnionBanCal Corporation (NYSE:UB) today reported first quarter 2007 net 
      income of $149.6 million, or $1.07 per diluted common share. Income from 
      continuing operations for first quarter 2006 was $181.5 million, or 
      $1.24 per diluted common share.
    
    
      Income from continuing operations for fourth quarter 2006 was $227.7 
      million, or $1.61 per diluted common share, including $72.8 million, or 
      $0.51 per diluted common share, in state income tax refunds, and $5.3 
      million, or $0.04 per diluted common share, in tax adjustments. 
      Excluding these items, income from continuing operations for fourth 
      quarter 2006 was $149.6 million, or $1.06 per diluted common share.
    
    
      “The operating environment continues to be 
      challenging for banks with significant commercial deposit businesses,” 
      stated Takashi Morimura, President and Chief Executive Officer. “However, 
      our first quarter results were in line with our expectations, as strong 
      loan growth, excellent asset quality, and good expense control offset 
      the expected deposit weakness.
    
    
      “In February, we announced that Masaaki Tanaka 
      will be assuming the position of President and Chief Executive Officer 
      in May, when I take on a new role with our majority shareholder. I am 
      privileged to have served as President and Chief Executive Officer of 
      UnionBanCal Corporation, and I leave the Company in the capable hands of 
      Mr. Tanaka, our Chief Operating Officer Philip Flynn, and the rest of 
      the executive management team.”
    
    
      Commenting on the first quarter results, Mr. Flynn stated, “We 
      began 2007 with continued robust growth in loans, particularly in our 
      industry specialty businesses. We grew core commercial and industrial 
      loans 14 percent over last year, while we grew commercial mortgage and 
      construction loans 16 percent. We expanded our high-quality residential 
      mortgage portfolio by 8 percent year over year, while maintaining our 
      stringent underwriting standards. Overall, credit quality continues to 
      be excellent.
    
    
      “Competition for deposits continues to be 
      intense, which has resulted in pressure on noninterest bearing deposit 
      balances. However, pricing on interest bearing core deposits appears to 
      be stabilizing. We continue to have confidence in the strategic 
      positioning of our commercial deposit businesses.”
    
    
      Summary of First Quarter Results
    
    
      First quarter 2007 net income was $149.6 million, or $1.07 per diluted 
      common share, compared with income from continuing operations of $1.24 
      per diluted common share a year earlier. Total revenue compared with 
      first quarter 2006 decreased 4.5 percent, due to a 2.1 percent increase 
      in noninterest income and a 7.7 percent decrease in net interest income. 
      The decrease in net interest income was primarily due to a deposit mix 
      shift, reflecting customer decisions to shift balances from noninterest 
      bearing and low-cost deposits into higher-cost deposits. The unfavorable 
      deposit mix change offset strong loan growth. The total provision for 
      credit losses was $5 million, $15 million higher than the negative $10 
      million provision recorded in first quarter 2006. For first quarter 
      2007, noninterest expense was up 1.8 percent from the same quarter a 
      year earlier.
    
    
      First quarter 2007 net income was $1.07 per diluted common share, 
      compared with adjusted income from continuing operations of $1.06 per 
      diluted common share last quarter. Adjusted income from continuing 
      operations for fourth quarter 2006 excludes $0.51 per diluted common 
      share in state income tax refunds and $0.04 per diluted common share in 
      tax adjustments. Total revenue decreased 2.9 percent in sequential 
      quarters, with net interest income decreasing 4.0 percent and 
      noninterest income decreasing 0.7 percent. The decrease in net interest 
      income was primarily due to lower noninterest bearing deposit balances 
      and two fewer days in first quarter 2007. The total provision for credit 
      losses was $5 million in both quarters. Noninterest expense declined 4.4 
      percent in sequential quarters, primarily due to lower cost of services 
      related to title and escrow balances, lower compliance-related expense 
      and lower expense associated with low income housing tax credit projects.
    
    
      First Quarter Total Revenue
    
    
      For first quarter 2007, total revenue (taxable-equivalent net interest 
      income plus noninterest income) was $653.2 million, down 4.5 percent 
      compared with first quarter 2006. Net interest income decreased 7.7 
      percent, and noninterest income increased 2.1 percent. Compared with 
      fourth quarter 2006, total revenue decreased 2.9 percent, with net 
      interest income decreasing 4.0 percent and noninterest income decreasing 
      0.7 percent.
    
    
      First Quarter Net Interest Income 
      (Taxable-equivalent)
    
    
      Net interest income was $430.6 million in first quarter 2007, down $35.7 
      million, or 7.7 percent, from the same quarter a year ago, primarily due 
      to a deposit mix shift from noninterest bearing and low-cost deposits 
      into higher-cost deposits, partially offset by solid growth in loans and 
      higher yields on earning assets.
    
    
      Average earning assets increased $5.3 billion, or 12.2 percent, compared 
      to 2006, primarily due to a $4.4 billion, or 12.9 percent, increase in 
      average loans. Average commercial loans increased $2.3 billion, or 18.7 
      percent; and average residential mortgages increased $0.9 billion, or 
      8.2 percent. $708 million, or 31 percent, of the increase in average 
      commercial loans was attributable to title and escrow loans, which are 
      highly rate-advantaged loans and are more volatile than other commercial 
      loans. Excluding title and escrow loans, average commercial loans grew 
      14.0 percent, year over year.
    
    
      Compared to first quarter 2006, average interest bearing deposits 
      increased $5.0 billion, or 23.7 percent, while average noninterest 
      bearing deposits decreased $2.4 billion, or 13.8 percent. The decline in 
      noninterest bearing deposits was primarily due to a $1.7 billion, or 
      14.8 percent, decrease in average other commercial noninterest bearing 
      deposits and a $0.3 billion, or 11.6 percent, decrease in average title 
      and escrow deposits. Average other commercial noninterest bearing 
      deposits declined primarily due to changes in customer behavior in 
      response to rising short-term interest rates, and average title and 
      escrow deposits decreased due to lower residential real estate activity. 
      Average consumer noninterest bearing deposits decreased $0.4 billion, or 
      12.0 percent.
    
    
      Average noninterest bearing deposits represented 36.4 percent of average 
      total deposits in first quarter 2007. The annualized average all-in cost 
      of funds was 2.55 percent, reflecting the Company’s 
      strong average core deposit-to-loan ratio of 86 percent and the high 
      proportion of noninterest bearing deposits to total deposits.
    
    
      The average yield on earning assets of $48.4 billion was 6.06 percent, 
      up 29 basis points over first quarter 2006, with the average loan yield 
      increasing 25 basis points. The average rate on interest bearing 
      liabilities of $31.9 billion was 3.75 percent, up 126 basis points 
      compared with first quarter 2006, reflecting higher short-term interest 
      rates, an unfavorable change in deposit mix, and heightened competition 
      for deposits. The net interest margin in first quarter 2007 was 3.58 
      percent, compared with 4.36 percent in first quarter 2006.
    
    
      First quarter 2007 net interest income decreased $18 million, or 4.0 
      percent, compared with fourth quarter 2006, with approximately $3.8 
      million of the decline attributable to two fewer days in first quarter 
      2007. Average loans increased $1.0 billion, or 2.6 percent. Average 
      commercial loans increased $511 million, or 3.6 percent, average 
      commercial mortgage loans increased $249 million, or 4.3 percent, and 
      average residential mortgages increased $162 million, or 1.3 percent. 
      Average interest bearing deposits increased $1.2 billion, or 4.8 
      percent, while average noninterest bearing deposits decreased $1.0 
      billion, or 6.4 percent. The decline in noninterest bearing deposits was 
      due to a $677 million, or 6.2 percent, decrease in average other 
      commercial noninterest bearing deposits and a $347 million, or 14.1 
      percent, decrease in average title and escrow deposits. Average consumer 
      noninterest bearing deposits decreased $10 million, or 0.4 percent. The 
      average yield on earning assets was flat and the average rate on 
      interest bearing liabilities increased 17 basis points. The net interest 
      margin decreased 23 basis points to 3.58 percent.
    
    
      First Quarter Noninterest Income
    
    
      In first quarter 2007, noninterest income was $222.6 million, up $4.6 
      million, or 2.1 percent, from the same quarter a year ago. Service 
      charges on deposit accounts decreased $6.7 million, or 8.2 percent, 
      primarily due to lower account analysis fees, stemming from an increase 
      in the earnings credit rate on deposit balances and lower noninterest 
      bearing deposit balances. Gain on private capital investments, net, was 
      $9.1 million, compared with $2.8 million in the same quarter a year ago.
    
    
      First quarter 2007 noninterest income decreased $1.5 million, or 0.7 
      percent, compared with fourth quarter 2006. Service charges on deposit 
      accounts decreased $2.1 million, or 2.8 percent, primarily due to lower 
      noninterest bearing deposit balances. Insurance commissions increased 
      $2.3 million, or 12.7 percent, primarily due to normal seasonal factors. 
      Merchant banking fees decreased $4.8 million, or 34.7 percent, primarily 
      due to a lower volume of syndications completed in first quarter.
    
    
      First Quarter Noninterest Expense
    
    
      Noninterest expense for first quarter 2007 was $422.1 million, an 
      increase of $7.5 million, or 1.8 percent, over noninterest expense for 
      first quarter 2006. Salaries and employee benefits expense increased 
      $6.0 million, or 2.4 percent, primarily due to annual merit increases 
      and higher accruals for performance-related incentive expense, partially 
      offset by lower pension expense. Outside services expense decreased $8.8 
      million, or 30.7 percent, primarily due to lower cost of services 
      related to title and escrow balances. Professional services expense 
      increased $2.5 million, or 17.5 percent, primarily due to higher 
      compliance-related expense compared with first quarter last year. 
      Advertising and public relations expense decreased $1.8 million, or 18.0 
      percent, primarily due to timing of marketing promotions. Foreclosed 
      asset expense (income) decreased $7.4 million, reflecting a $7.4 million 
      gain on the sale of property recorded in first quarter 2006. Provision 
      for losses on off-balance sheet commitments in first quarter 2007 was 
      $1.0 million, compared with negative $3.0 million in first quarter 2006.
    
    
      Noninterest expense decreased $19.6 million, or 4.4 percent, compared 
      with fourth quarter 2006. Salaries and employee benefits expense 
      increased $7.7 million, or 3.1 percent, primarily due to annual seasonal 
      factors that result in higher payroll taxes and 401(k) matching 
      contributions, and higher accruals for performance-related incentive 
      expense, partially offset by lower pension expense and lower severance 
      expense. Outside services expense declined $6.3 million, or 24.2 
      percent, primarily due to lower cost of services related to title and 
      escrow balances. Professional services expense decreased $2.8 million, 
      or 14.0 percent, partially due to lower compliance-related expense. 
      Provision for losses on off-balance sheet commitments was $1.0 million, 
      compared with $2.0 million in the prior quarter.
    
    
      Income Tax Expense
    
    
      The effective tax rate for first quarter 2007 was 33.5 percent, compared 
      with an effective tax rate of 34.1 percent for first quarter 2006. The 
      difference in rate was primarily due to higher tax credits in 2007.
    
    
      Significant Accounting Policies
    
    
      On January 1, 2007, the Company adopted Staff Position (FSP) FAS 13-2, 
      "Accounting for a Change or Projected Change in the Timing of Cash Flows 
      Related to Income Taxes Generated by a Leveraged Lease Transaction", 
      which resulted in a reduction to retained earnings of $20.8 million.
    
    
      On January 1, 2007, the Company adopted FIN No. 48, "Accounting for 
      Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 
      109". The cumulative effect of applying the provisions of this 
      interpretation was recognized as a reduction to retained earnings of 
      $49.3 million.
    
    
      Credit Quality
    
    
      Nonperforming assets at March 31, 2007, were $42 million, or 0.08 
      percent of total assets. This compares with $42 million, or 0.08 percent 
      of total assets, at December 31, 2006, and $42 million, or 0.09 percent 
      of total assets, at March 31, 2006.
    
    
      In first quarter 2007, the total provision for credit losses was $5 
      million. The total provision for credit losses was $5 million in fourth 
      quarter 2006 and negative $10 million in first quarter 2006. In first 
      quarter 2007, net charge-offs were $2 million, compared with net 
      recoveries of $1 million in fourth quarter 2006, and net charge-offs of 
      $5 million in first quarter 2006.
    
    
      At March 31, 2007, the allowance for credit losses as a percent of total 
      loans and as a percent of nonaccrual loans was 1.11 percent and 997 
      percent, respectively. These ratios were 1.12 percent and 987 percent, 
      respectively, at December 31, 2006, and 1.26 percent and 1003 percent, 
      respectively, at March 31, 2006.
    
    
      Balance Sheet and Capital Ratios
    
    
      At March 31, 2007, the Company had total assets of $54.6 billion. Total 
      loans were $37.3 billion and total deposits were $43.8 billion, 
      resulting in a period-end deposit-to-loan ratio of 118 percent. At 
      period-end, total stockholders’ equity was 
      $4.6 billion, the tangible equity ratio was 7.53 percent, and the ratio 
      of tangible common equity to risk-weighted assets was 7.99 percent. Book 
      value per share at March 31, 2007, was $32.98, up 3.3 percent from a 
      year earlier. The Company’s Tier I and total 
      risk-based capital ratios at period-end were 8.41 percent and 11.38 
      percent, respectively.
    
    
      Stock Repurchases
    
    
      During first quarter 2007, the Company repurchased 1.4 million shares of 
      common stock at a total price of $85.5 million, or an average of $62.73 
      per repurchased share. At March 31, 2007, the Company had remaining 
      repurchase authority of $64 million.
    
    
      Common shares outstanding at March 31, 2007, were 138.1 million, a 
      decrease of 5.3 million shares, or 3.7 percent, from one year earlier.
    
    
      Common Stock Dividend
    
    
      The next meeting of the Board of Directors of the Company is scheduled 
      for May 24, 2007. At this meeting, the Board will consider and declare 
      the second quarter 2007 common stock dividend.
    
    
      Second Quarter and Full Year 2007 
      Earnings Per Share Forecast
    
    
      The Company currently estimates that second quarter 2007 fully diluted 
      earnings per share will be in the range of $1.07 to $1.12, including a 
      total provision for credit losses of approximately $5 million.
    
    
      For the year, the Company currently estimates that fully diluted 
      earnings per share will be in the range of $4.50 to $4.75, including a 
      total provision for credit losses of approximately $35 million.
    
    
      Non-GAAP Financial Measures
    
    
      This press release contains certain references to financial measures 
      identified as being stated on an “adjusted 
      basis” or that adjust for or exclude tax 
      refunds and adjustments, which are adjustments from comparable measures 
      calculated and presented in accordance with accounting principles 
      generally accepted in the United States of America (GAAP). These 
      financial measures, as used herein, differ from financial measures 
      reported under GAAP in that they exclude unusual or non-recurring 
      charges, losses, credits or gains. This press release identifies the 
      specific items excluded from the comparable GAAP financial measure in 
      the calculation of each non-GAAP financial measure. Because these items 
      and their impact on the Company’s performance 
      are difficult to predict, management believes that financial 
      presentations excluding the impact of these items provide useful 
      supplemental information which is important to a proper understanding of 
      the Company’s core business results by 
      investors. These presentations should not be viewed as a substitute for 
      results determined in accordance with GAAP, nor are they necessarily 
      comparable to non-GAAP financial measures presented by other companies.
    
    
      Forward-Looking Statements
    
    
      The following appears in accordance with the Private Securities 
      Litigation Reform Act. This press release includes forward-looking 
      statements that involve risks and uncertainties. Forward-looking 
      statements can be identified by the fact that they do not relate 
      strictly to historical or current facts. Often, they include the words “believe,” 
      ”continue,” “expect,” 
      “target,” “anticipate,” 
      “intend,” “plan,” 
      “estimate,” “potential,” 
      “project,” or 
      words of similar meaning, or future or conditional verbs such as “will,” 
      “would,” “should,” 
      “could,” or “may.” 
      They may also consist of annualized amounts based on historical interim 
      period results. Forward-looking statements in this press release include 
      those related to earnings forecasts, provision for credit losses, trends 
      in deposit rates and balances and competition for deposits and their 
      impact on the Company, and the Company’s loan 
      portfolio, business model, competitive positioning and earnings power.
    
    
      There are numerous risks and uncertainties that could and will cause 
      actual results to differ materially from those discussed in the Company’s 
      forward-looking statements. Many of these factors are beyond the Company’s 
      ability to control or predict and could have a material adverse effect 
      on the Company’s stock price, financial 
      condition, and results of operations or prospects. Such risks and 
      uncertainties include, but are not limited to, adverse economic and 
      fiscal conditions in California; increased energy costs; global 
      political and general economic conditions related to the war on 
      terrorism and other hostilities; fluctuations in interest rates; the 
      controlling interest in UnionBanCal Corporation of The Bank of 
      Tokyo-Mitsubishi UFJ, Ltd., which is a wholly-owned subsidiary of 
      Mitsubishi UFJ Financial Group, Inc.; competition in the banking and 
      financial services industries; deposit pricing pressures; the levels of 
      commercial and residential real estate activity in our market; adverse 
      effects of current and future banking laws, rules and regulations and 
      their enforcement, or governmental fiscal or monetary policies; legal or 
      regulatory proceedings; declines or disruptions in the stock or bond 
      markets which may adversely affect the Company or the Company’s 
      borrowers or other customers; changes in accounting practices or 
      requirements; and risks associated with various strategies the Company 
      may pursue, including potential acquisitions, divestitures and 
      restructurings.
    
    
      A complete description of the Company, including related risk factors, 
      is discussed in the Company’s public filings 
      with the Securities and Exchange Commission, which are available by 
      calling [phone] or online at http://www.sec.gov. 
      All forward-looking statements included in this press release are based 
      on information available at the time of the release, and the Company 
      assumes no obligation to update any forward-looking statement.
    
    
      Conference Call and Webcast
    
    
      The Company will conduct a conference call to review first quarter 2007 
      results at 8:30 AM Pacific Time (11:30 AM Eastern Time) on April 20, 
      2007. Interested parties calling from locations within the United States 
      should call 800-230-1951 (612-332-0107 from outside the United States) 
      10 minutes prior to the beginning of the conference.
    
    
      A live webcast of the call will be available at http://www.unionbank.com. 
      You may access the Investor Relations section of the website via the “About 
      Union Bank” link from the homepage. The 
      webcast replay will be available on the website within 24 hours after 
      the conclusion of the call, and will remain on the website for a period 
      of one year.
    
    
      A recorded playback of the conference call will be available by calling 
      800-475-6701, (320-365-3844 from outside the United States) from 
      approximately 12:00 PM Pacific Time (3:00 PM Eastern Time), April 20, 
      through 11:59 PM Pacific Time, April 27 (2:59 AM Eastern Time, April 
      28). The reservation number for this playback is 868035.
    
    
      Based in San Francisco, UnionBanCal Corporation is a bank holding 
      company with assets of $54.6 billion at March 31, 2007. Its primary 
      subsidiary, Union Bank of California, N.A., had 321 banking offices in 
      California, Oregon and Washington, and 2 international offices at March 
      31, 2007.
    
    
      
        
          
             
          
        
      
      
        
          
            UnionBanCal Corporation and Subsidiaries
          
        
      
      
        
          
            Financial Highlights (Unaudited)
          
        
      
      
        
          
            Exhibit 1
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Percent Change to
        
      
      
        
        
        
        
        
          As of and for the Three Months Ended
        
        
          March 31, 2007 from
        
      
      
        
        
        
        
        
          
            March 31,
          
        
        
        
        
          
            Dec. 31,
          
        
        
          
            March 31,
          
        
        
          March 31,
        
        
        
        
          
            Dec. 31,
          
        
      
      
        
          (Dollars in thousands, except per share data)
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2007 
        
        
          2006 
        
        
           
        
        
          2006 
        
      
      
        
          Results of operations:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net interest income (1)
        
        
        
        
          $ 466,341 
        
        
        
        
          $ 448,619 
        
        
        
        
          $ 430,627 
        
        
          (7.66%)
        
        
        
        
          (4.01%)
        
      
      
        
          Noninterest income
        
        
        
        
          217,910 
        
        
        
        
          224,106 
        
        
        
        
          222,558 
        
        
          2.13%
        
        
        
        
          (0.69%)
        
      
      
        
          Total revenue
        
        
        
        
          684,251 
        
        
        
        
          672,725 
        
        
        
        
          653,185 
        
        
          (4.54%)
        
        
        
        
          (2.90%)
        
      
      
        
          Noninterest expense
        
        
        
        
          414,544 
        
        
        
        
          441,693 
        
        
        
        
          422,091 
        
        
          1.82%
        
        
        
        
          (4.44%)
        
      
      
        
          (Reversal of) provision for loan losses
        
        
        
        
          (7,000)
        
        
        
        
          3,000 
        
        
        
        
          4,000 
        
        
          nm
        
        
        
        
          33.33%
        
      
      
        
          Income from continuing operations before income taxes (1)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          276,707 
        
        
        
        
          228,032 
        
        
        
        
          227,094 
        
        
          (17.93%)
        
        
        
        
          (0.41%)
        
      
      
        
          Taxable-equivalent adjustment
        
        
        
        
          1,248 
        
        
        
        
          1,923 
        
        
        
        
          2,115 
        
        
          69.47%
        
        
        
        
          9.98%
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
          94,004 
        
        
        
        
          (1,632)
        
        
        
        
          75,368 
        
        
          (19.82%)
        
        
        
        
          nm
        
      
      
        
          Income from continuing operations
        
        
        
        
          $ 181,455 
        
        
        
        
          $ 227,741 
        
        
        
        
          $ 149,611 
        
        
          (17.55%)
        
        
        
        
          (34.31%)
        
      
      
        
          Loss from discontinued operations
        
        
        
        
          (8,510)
        
        
        
        
          (1,307)
        
        
        
        
          - 
        
        
          100.00%
        
        
        
        
          100.00%
        
      
      
        
          Net income
        
        
        
        
          $ 172,945 
        
        
        
        
          $ 226,434 
        
        
        
        
          $ 149,611 
        
        
          (13.49%)
        
        
        
        
          (33.93%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Per common share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic earnings:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          From continuing operations
        
        
        
        
          $ 1.26 
        
        
        
        
          $ 1.63 
        
        
        
        
          $ 1.08 
        
        
          (14.29%)
        
        
        
        
          (33.74%)
        
      
      
        
          Net income
        
        
        
        
          1.20 
        
        
        
        
          1.62 
        
        
        
        
          1.08 
        
        
          (10.00%)
        
        
        
        
          (33.33%)
        
      
      
        
          Diluted earnings:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          From continuing operations
        
        
        
        
          1.24 
        
        
        
        
          1.61 
        
        
        
        
          1.07 
        
        
          (13.71%)
        
        
        
        
          (33.54%)
        
      
      
        
          Net income
        
        
        
        
          1.18 
        
        
        
        
          1.61 
        
        
        
        
          1.07 
        
        
          (9.32%)
        
        
        
        
          (33.54%)
        
      
      
        
          Dividends (2)
        
        
        
        
          0.41 
        
        
        
        
          0.47 
        
        
        
        
          0.47 
        
        
          14.63%
        
        
        
        
          0.00%
        
      
      
        
          Book value (end of period)
        
        
        
        
          31.94 
        
        
        
        
          32.86 
        
        
        
        
          32.98 
        
        
          3.26%
        
        
        
        
          0.37%
        
      
      
        
          Common shares outstanding (end of period) (3) (4)
        
        
          143,402,332 
        
        
        
        
          139,107,254 
        
        
        
        
          138,117,370 
        
        
          (3.69%)
        
        
        
        
          (0.71%)
        
      
      
        
          Weighted average common shares outstanding - basic (3) 
          (4)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          143,878,106 
        
        
        
        
          139,390,487 
        
        
        
        
          137,942,320 
        
        
          (4.13%)
        
        
        
        
          (1.04%)
        
      
      
        
          Weighted average common shares outstanding - diluted 
          (3) (4)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          146,026,188 
        
        
        
        
          141,025,758 
        
        
        
        
          139,729,681 
        
        
          (4.31%)
        
        
        
        
          (0.92%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Balance sheet (end of period):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets (5)
        
        
        
        
          $ 48,800,945 
        
        
        
        
          $ 52,619,576 
        
        
        
        
          $ 54,616,849 
        
        
          11.92%
        
        
        
        
          3.80%
        
      
      
        
          Total loans
        
        
        
        
          33,528,868 
        
        
        
        
          36,671,723 
        
        
        
        
          37,251,950 
        
        
          11.10%
        
        
        
        
          1.58%
        
      
      
        
          Nonperforming assets
        
        
        
        
          42,392 
        
        
        
        
          42,365 
        
        
        
        
          41,744 
        
        
          (1.53%)
        
        
        
        
          (1.47%)
        
      
      
        
          Total deposits
        
        
        
        
          39,155,904 
        
        
        
        
          41,969,368 
        
        
        
        
          43,797,924 
        
        
          11.86%
        
        
        
        
          4.36%
        
      
      
        
          Stockholders' equity
        
        
        
        
          4,579,878 
        
        
        
        
          4,571,401 
        
        
        
        
          4,555,439 
        
        
          (0.53%)
        
        
        
        
          (0.35%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Balance sheet (period average):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total assets
        
        
        
        
          $ 48,016,643 
        
        
        
        
          $ 51,671,465 
        
        
        
        
          $ 52,973,203 
        
        
          10.32%
        
        
        
        
          2.52%
        
      
      
        
          Total loans
        
        
        
        
          34,052,067 
        
        
        
        
          37,495,315 
        
        
        
        
          38,458,014 
        
        
          12.94%
        
        
        
        
          2.57%
        
      
      
        
          Earning assets
        
        
        
        
          43,084,349 
        
        
        
        
          46,860,166 
        
        
        
        
          48,354,950 
        
        
          12.23%
        
        
        
        
          3.19%
        
      
      
        
          Total deposits
        
        
        
        
          38,856,033 
        
        
        
        
          41,320,468 
        
        
        
        
          41,483,062 
        
        
          6.76%
        
        
        
        
          0.39%
        
      
      
        
          Stockholders' equity
        
        
        
        
          4,538,679 
        
        
        
        
          4,638,801 
        
        
        
        
          4,510,205 
        
        
          (0.63%)
        
        
        
        
          (2.77%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Financial ratios (6):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Return on average assets (7) :
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          From continuing operations
        
        
        
        
          1.53%
        
        
        
        
          1.75%
        
        
        
        
          1.15%
        
        
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
          1.46%
        
        
        
        
          1.74%
        
        
        
        
          1.15%
        
        
        
        
        
        
        
      
      
        
          
            Return on average stock-holders' equity (7) 
            :
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          From continuing operations
        
        
        
        
          16.21%
        
        
        
        
          19.48%
        
        
        
        
          13.45%
        
        
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
          15.45%
        
        
        
        
          19.37%
        
        
        
        
          13.45%
        
        
        
        
        
        
        
      
      
        
          Efficiency ratio (8)
        
        
        
        
          62.10%
        
        
        
        
          65.36%
        
        
        
        
          64.47%
        
        
        
        
        
        
        
      
      
        
          Net interest margin (1)
        
        
        
        
          4.36%
        
        
        
        
          3.81%
        
        
        
        
          3.58%
        
        
        
        
        
        
        
      
      
        
          Dividend payout ratio
        
        
        
        
          32.54%
        
        
        
        
          28.83%
        
        
        
        
          43.52%
        
        
        
        
        
        
        
      
      
        
          Tangible equity ratio
        
        
        
        
          8.46%
        
        
        
        
          7.84%
        
        
        
        
          7.53%
        
        
        
        
        
        
        
      
      
        
          Tier 1 risk-based capital ratio (5) (9)
        
        
        
        
          9.09%
        
        
        
        
          8.68%
        
        
        
        
          8.41%
        
        
        
        
        
        
        
      
      
        
          Total risk-based capital ratio (5) (9)
        
        
        
        
          10.94%
        
        
        
        
          11.71%
        
        
        
        
          11.38%
        
        
        
        
        
        
        
      
      
        
          Leverage ratio (5) (9)
        
        
        
        
          8.80%
        
        
        
        
          8.44%
        
        
        
        
          8.12%
        
        
        
        
        
        
        
      
      
        
          Allowances for credit losses to total loans (10)
        
        
        
        
          1.26%
        
        
        
        
          1.12%
        
        
        
        
          1.11%
        
        
        
        
        
        
        
      
      
        
          Allowances for credit losses to nonaccrual loans (10)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          1003.48%
        
        
        
        
          987.06%
        
        
        
        
          997.48%
        
        
        
        
        
        
        
      
      
        
          Net loans charged off (recovered) to average total loans (7)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          0.06%
        
        
        
        
          (0.01%)
        
        
        
        
          0.03%
        
        
        
        
        
        
        
      
      
        
          Nonperforming assets to total loans and foreclosed assets
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          0.13%
        
        
        
        
          0.12%
        
        
        
        
          0.11%
        
        
        
        
        
        
        
      
      
        
          Nonperforming assets to total assets (5)
        
        
        
        
          0.09%
        
        
        
        
          0.08%
        
        
        
        
          0.08%
        
        
        
        
        
        
        
      
      
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          
            Refer to Exhibit 8 for footnote explanations.
          
        
      
    
    
      
        
          UnionBanCal Corporation and Subsidiaries
        
      
      
        
          Condensed Consolidated Statements of Income (Unaudited)
        
      
      
        
          (Taxable-Equivalent Basis)
        
      
      
        
          
            Exhibit 2
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          For the Three Months Ended
        
      
      
        
        
        
        
        
        
        
        
        
          March 31,
        
        
        
        
          
            Dec. 31,
          
        
        
        
        
          March 31,
        
      
      
        
          (Dollars in thousands, except per share data)
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2007 
        
      
      
        
          Interest Income (1)
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Loans
        
        
        
        
          $ 512,988 
        
        
        
        
          $ 595,225 
        
        
        
        
          $ 603,502 
        
      
      
        
        
        
          Securities
        
        
        
        
          97,351 
        
        
        
        
          110,916 
        
        
        
        
          108,422 
        
      
      
        
        
        
          Interest bearing deposits in banks
        
        
        
        
          736 
        
        
        
        
          1,047 
        
        
        
        
          1,109 
        
      
      
        
        
        
          Federal funds sold and securities purchased under resale agreements
        
        
        
        
          3,845 
        
        
        
        
          4,924 
        
        
        
        
          11,152 
        
      
      
        
        
        
          Trading account assets
        
        
        
        
          1,530 
        
        
        
        
          1,791 
        
        
        
        
          1,701 
        
      
      
        
        
        
        
        
          Total interest income
        
        
        
        
          616,450 
        
        
        
        
          713,903 
        
        
        
        
          725,886 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest Expense
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Deposits
        
        
        
        
          115,309 
        
        
        
        
          208,423 
        
        
        
        
          222,257 
        
      
      
        
        
        
          Federal funds purchased and securities sold under repurchase 
          agreements
        
        
          8,802 
        
        
        
        
          9,716 
        
        
        
        
          13,524 
        
      
      
        
        
        
          Commercial paper
        
        
        
        
          12,448 
        
        
        
        
          22,595 
        
        
        
        
          22,264 
        
      
      
        
        
        
          Medium and long-term debt
        
        
        
        
          10,397 
        
        
        
        
          21,193 
        
        
        
        
          19,695 
        
      
      
        
        
        
          Trust notes
        
        
        
        
          238 
        
        
        
        
          238 
        
        
        
        
          238 
        
      
      
        
        
        
          Other borrowed funds
        
        
        
        
          2,915 
        
        
        
        
          3,119 
        
        
        
        
          17,281 
        
      
      
        
        
        
        
        
          Total interest expense
        
        
        
        
          150,109 
        
        
        
        
          265,284 
        
        
        
        
          295,259 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Interest Income (1)
        
        
        
        
          466,341 
        
        
        
        
          448,619 
        
        
        
        
          430,627 
        
      
      
        
        
        
          (Reversal of) provision for loan losses
        
        
        
        
          (7,000)
        
        
        
        
          3,000 
        
        
        
        
          4,000 
        
      
      
        
        
        
        
        
          Net interest income after (reversal of) provision for loan losses
        
        
        
        
          473,341 
        
        
        
        
          445,619 
        
        
        
        
          426,627 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Noninterest Income
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Service charges on deposit accounts
        
        
        
        
          81,635 
        
        
        
        
          77,092 
        
        
        
        
          74,945 
        
      
      
        
        
        
          Trust and investment management fees
        
        
        
        
          50,115 
        
        
        
        
          49,036 
        
        
        
        
          48,560 
        
      
      
        
        
        
          Insurance commissions
        
        
        
        
          19,518 
        
        
        
        
          17,976 
        
        
        
        
          20,250 
        
      
      
        
        
        
          Brokerage commissions and fees
        
        
        
        
          7,795 
        
        
        
        
          9,155 
        
        
        
        
          9,660 
        
      
      
        
        
        
          Merchant banking fees
        
        
        
        
          8,229 
        
        
        
        
          13,905 
        
        
        
        
          9,077 
        
      
      
        
        
        
          Foreign exchange gains, net
        
        
        
        
          7,818 
        
        
        
        
          7,916 
        
        
        
        
          7,594 
        
      
      
        
        
        
          Card processing fees, net
        
        
        
        
          6,697 
        
        
        
        
          7,256 
        
        
        
        
          7,127 
        
      
      
        
        
        
          Securities gains (losses), net
        
        
        
        
          (214)
        
        
        
        
          420 
        
        
        
        
          1,220 
        
      
      
        
        
        
          Other
        
        
        
        
          36,317 
        
        
        
        
          41,350 
        
        
        
        
          44,125 
        
      
      
        
        
        
        
        
          Total noninterest income
        
        
        
        
          217,910 
        
        
        
        
          224,106 
        
        
        
        
          222,558 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Noninterest Expense
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Salaries and employee benefits
        
        
        
        
          252,495 
        
        
        
        
          250,791 
        
        
        
        
          258,515 
        
      
      
        
        
        
          Net occupancy
        
        
        
        
          32,837 
        
        
        
        
          38,662 
        
        
        
        
          35,137 
        
      
      
        
        
        
          Outside services
        
        
        
        
          28,609 
        
        
        
        
          26,184 
        
        
        
        
          19,836 
        
      
      
        
        
        
          Professional services
        
        
        
        
          14,547 
        
        
        
        
          19,862 
        
        
        
        
          17,087 
        
      
      
        
        
        
          Equipment
        
        
        
        
          17,922 
        
        
        
        
          17,678 
        
        
        
        
          16,554 
        
      
      
        
        
        
          Software
        
        
        
        
          16,344 
        
        
        
        
          16,978 
        
        
        
        
          14,196 
        
      
      
        
        
        
          Communications
        
        
        
        
          10,552 
        
        
        
        
          9,876 
        
        
        
        
          9,791 
        
      
      
        
        
        
          Foreclosed asset expense (income)
        
        
        
        
          (7,367)
        
        
        
        
          10 
        
        
        
        
          9 
        
      
      
        
        
        
          (Reversal of) provision for losses on off-balance sheet commitments
        
        
          (3,000)
        
        
        
        
          2,000 
        
        
        
        
          1,000 
        
      
      
        
        
        
          Other
        
        
        
        
          51,605 
        
        
        
        
          59,652 
        
        
        
        
          49,966 
        
      
      
        
        
        
        
        
          Total noninterest expense
        
        
        
        
          414,544 
        
        
        
        
          441,693 
        
        
        
        
          422,091 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income from continuing operations before income taxes (1)
        
        
        
        
          276,707 
        
        
        
        
          228,032 
        
        
        
        
          227,094 
        
      
      
        
        
        
          Taxable-equivalent adjustment
        
        
        
        
          1,248 
        
        
        
        
          1,923 
        
        
        
        
          2,115 
        
      
      
        
        
        
          Income tax expense (benefit)
        
        
        
        
          94,004 
        
        
        
        
          (1,632)
        
        
        
        
          75,368 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
      
      
        
          Income from Continuing Operations
        
        
        
        
          181,455 
        
        
        
        
          227,741 
        
        
        
        
          149,611 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loss from discontinued operations before income taxes
        
        
        
        
          (13,603)
        
        
        
        
          (1,824)
        
        
        
        
          - 
        
      
      
        
        
        
          Income tax benefit
        
        
        
        
          (5,093)
        
        
        
        
          (517)
        
        
        
        
          - 
        
      
      
        
          Loss from Discontinued Operations
        
        
        
        
          (8,510)
        
        
        
        
          (1,307)
        
        
        
        
          - 
        
      
      
        
          Net Income
        
        
        
        
          $ 172,945 
        
        
        
        
          $ 226,434 
        
        
        
        
          $ 149,611 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income from continuing operations per common share - basic
        
        
        
        
          $ 1.26 
        
        
        
        
          $ 1.63 
        
        
        
        
          $ 1.08 
        
      
      
        
          Net income per common share - basic
        
        
        
        
          $ 1.20 
        
        
        
        
          $ 1.62 
        
        
        
        
          $ 1.08 
        
      
      
        
          Income from continuing operations per common share - diluted
        
        
          $ 1.24 
        
        
        
        
          $ 1.61 
        
        
        
        
          $ 1.07 
        
      
      
        
          Net income per common share - diluted
        
        
        
        
          $ 1.18 
        
        
        
        
          $ 1.61 
        
        
        
        
          $ 1.07 
        
      
      
        
          Weighted average common shares outstanding - basic
        
        
        
        
          143,878 
        
        
        
        
          139,390 
        
        
        
        
          137,942 
        
      
      
        
          Weighted average common shares outstanding - diluted
        
        
        
        
          146,026 
        
        
        
        
          141,026 
        
        
        
        
          139,730 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Refer to Exhibit 8 for footnote explanations.
        
      
    
    
      
        
          
            UnionBanCal Corporation and Subsidiares
          
          
            Consolidated Balance Sheets
          
          
            Exhibit 3
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          (Unaudited)
        
        
        
        
        
        
        
        
          (Unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          March 31,
        
        
        
        
          December 31,
        
        
        
        
          March 31,
        
      
      
        
          (Dollars in thousands)
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2007 
        
      
      
        
          Assets
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cash and due from banks
        
        
        
        
          $ 2,035,544 
        
        
        
        
          $ 2,213,782 
        
        
        
        
          $ 1,913,937 
        
      
      
        
        
        
          Interest bearing deposits in banks
        
        
        
        
          170,187 
        
        
        
        
          824,456 
        
        
        
        
          1,008,327 
        
      
      
        
        
        
          Federal funds sold and securities purchased under resale agreements
        
        
        
        
          513,777 
        
        
        
        
          943,200 
        
        
        
        
          2,747,300 
        
      
      
        
        
        
        
        
          Total cash and cash equivalents
        
        
        
        
          2,719,508 
        
        
        
        
          3,981,438 
        
        
        
        
          5,669,564 
        
      
      
        
          Trading account assets
        
        
        
        
          329,703 
        
        
        
        
          376,321 
        
        
        
        
          297,998 
        
      
      
        
          Securities available for sale:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Securities pledged as collateral
        
        
        
        
          88,152 
        
        
        
        
          89,184 
        
        
        
        
          62,026 
        
      
      
        
        
        
          Held in portfolio
        
        
        
        
          8,394,318 
        
        
        
        
          8,667,038 
        
        
        
        
          8,524,615 
        
      
      
        
          Loans (net of allowance for loan losses: March 31, 2006, $339,443; 
          December 31, 2006, $331,077; March 31, 2007, $332,679)
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          33,189,425 
        
        
        
        
          36,340,646 
        
        
        
        
          36,919,271 
        
      
      
        
          Due from customers on acceptances
        
        
        
        
          20,541 
        
        
        
        
          17,834 
        
        
        
        
          18,099 
        
      
      
        
          Premises and equipment, net
        
        
        
        
          511,095 
        
        
        
        
          495,302 
        
        
        
        
          491,088 
        
      
      
        
          Intangible assets
        
        
        
        
          39,186 
        
        
        
        
          28,930 
        
        
        
        
          26,687 
        
      
      
        
          Goodwill
        
        
        
        
        
        
          453,489 
        
        
        
        
          453,489 
        
        
        
        
          453,489 
        
      
      
        
          Other assets
        
        
        
        
          2,814,603 
        
        
        
        
          2,148,954 
        
        
        
        
          2,154,012 
        
      
      
        
          Assets of discontinued operations to be disposed or sold
        
        
        
        
          240,925 
        
        
        
        
          20,440 
        
        
        
        
          - 
        
      
      
        
        
        
        
        
          Total assets
        
        
        
        
          $ 48,800,945 
        
        
        
        
          $ 52,619,576 
        
        
        
        
          $ 54,616,849 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Liabilities
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Noninterest bearing
        
        
        
        
          $ 18,118,506 
        
        
        
        
          $ 17,113,890 
        
        
        
        
          $ 16,175,362 
        
      
      
        
        
        
          Interest bearing
        
        
        
        
          21,037,398 
        
        
        
        
          24,855,478 
        
        
        
        
          27,622,562 
        
      
      
        
        
        
        
        
          Total deposits
        
        
        
        
          39,155,904 
        
        
        
        
          41,969,368 
        
        
        
        
          43,797,924 
        
      
      
        
          Federal funds purchased and securities sold under repurchase 
          agreements
        
        
        
        
          292,758 
        
        
        
        
          1,083,927 
        
        
        
        
          549,545 
        
      
      
        
          Commercial paper
        
        
        
        
          1,420,276 
        
        
        
        
          1,661,163 
        
        
        
        
          1,424,401 
        
      
      
        
          Other borrowed funds
        
        
        
        
          66,472 
        
        
        
        
          432,401 
        
        
        
        
          892,852 
        
      
      
        
          Acceptances outstanding
        
        
        
        
          20,541 
        
        
        
        
          17,834 
        
        
        
        
          18,099 
        
      
      
        
          Other liabilities
        
        
        
        
          2,259,464 
        
        
        
        
          1,545,165 
        
        
        
        
          1,292,554 
        
      
      
        
          Medium and long-term debt
        
        
        
        
          788,763 
        
        
        
        
          1,318,847 
        
        
        
        
          2,071,263 
        
      
      
        
          Junior subordinated debt payable to subsidiary grantor trust
        
        
        
        
          15,225 
        
        
        
        
          14,885 
        
        
        
        
          14,772 
        
      
      
        
          Liabilities of discontinued operations to be extinguished or assumed
        
        
        
        
          201,664 
        
        
        
        
          4,585 
        
        
        
        
          - 
        
      
      
        
        
        
        
        
          Total liabilities
        
        
        
        
          44,221,067 
        
        
        
        
          48,048,175 
        
        
        
        
          50,061,410 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' Equity
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Preferred stock:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Authorized 5,000,000 shares; no shares issued or outstanding as of 
          March 31, 2006, December 31, 2006 and March 31, 2007
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Common stock, par value $1 per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Authorized 300,000,000 shares; issued 154,832,175 shares as of March 
          31, 2006, 156,460,057 shares as of December 31, 2006 and 156,832,956 
          shares as of March 31, 2007
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          154,832 
        
        
        
        
          156,460 
        
        
        
        
          156,833 
        
      
      
        
          Additional paid-in capital
        
        
        
        
          1,018,943 
        
        
        
        
          1,083,649 
        
        
        
        
          1,109,817 
        
      
      
        
          Treasury stock - 11,429,843 shares as of March 31, 2006, 17,352,803 
          shares as of December 31, 2006 and 18,715,586 shares as of March 31, 
          2007
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          (692,783)
        
        
        
        
          (1,064,606)
        
        
        
        
          (1,150,090)
        
      
      
        
          Retained earnings
        
        
        
        
          4,258,533 
        
        
        
        
          4,655,272 
        
        
        
        
          4,669,590 
        
      
      
        
          Accumulated other comprehensive loss
        
        
        
        
          (159,647)
        
        
        
        
          (259,374)
        
        
        
        
          (230,711)
        
      
      
        
        
        
        
        
          Total stockholders' equity
        
        
        
        
          4,579,878 
        
        
        
        
          4,571,401 
        
        
        
        
          4,555,439 
        
      
      
        
        
        
        
        
          Total liabilities and stockholders' equity
        
        
        
        
          $ 48,800,945 
        
        
        
        
          $ 52,619,576 
        
        
        
        
          $ 54,616,849 
        
      
    
    
      
        
          UnionBanCal Corporation and Subsidiaries
        
      
      
        
          
            Loans (Unaudited)
          
          
            Exhibit 4
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Percent Change to
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Three Months Ended
        
        
        
        
          March 31, 2007 from
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          March 31,
        
        
        
        
          December 31,
        
        
        
        
          March 31,
        
        
        
        
          March 31,
        
        
        
        
          December 31,
        
      
      
        
          (Dollars in millions)
        
        
           
        
        
           
        
        
           
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2007 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loans (period average)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Commercial, financial and industrial
        
        
        
        
          $ 12,370 
        
        
        
        
          $ 14,168 
        
        
        
        
          $ 14,681 
        
        
        
        
          18.68%
        
        
        
        
          3.62%
        
      
      
        
        
        
          Construction
        
        
        
        
        
        
        
        
        
        
          1,523 
        
        
        
        
          2,183 
        
        
        
        
          2,233 
        
        
        
        
          46.62%
        
        
        
        
          2.29%
        
      
      
        
        
        
          Mortgage - Commercial
        
        
        
        
        
        
        
        
          5,652 
        
        
        
        
          5,815 
        
        
        
        
          6,064 
        
        
        
        
          7.29%
        
        
        
        
          4.28%
        
      
      
        
        
        
          Mortgage - Residential
        
        
        
        
        
        
        
        
          11,444 
        
        
        
        
          12,222 
        
        
        
        
          12,384 
        
        
        
        
          8.21%
        
        
        
        
          1.33%
        
      
      
        
        
        
          Consumer
        
        
        
        
        
        
        
        
        
        
        
        
          2,489 
        
        
        
        
          2,520 
        
        
        
        
          2,542 
        
        
        
        
          2.13%
        
        
        
        
          0.87%
        
      
      
        
        
        
          Lease financing
        
        
        
        
        
        
        
        
        
        
          569 
        
        
        
        
          580 
        
        
        
        
          548 
        
        
        
        
          (3.69%)
        
        
        
        
          (5.52%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Total loans held to maturity
        
        
        
        
        
        
          $ 34,047 
        
        
        
        
          $ 37,488 
        
        
        
        
          $ 38,452 
        
        
        
        
          12.94%
        
        
        
        
          2.57%
        
      
      
        
        
        
        
        
          Total loans held for sale
        
        
        
        
        
        
          5 
        
        
        
        
          7 
        
        
        
        
          6 
        
        
        
        
          20.00%
        
        
        
        
          (14.29%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Total loans
        
        
        
        
        
        
        
        
          $ 34,052 
        
        
        
        
          $ 37,495 
        
        
        
        
          $ 38,458 
        
        
        
        
          12.94%
        
        
        
        
          2.57%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Nonperforming assets (period end)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Nonaccrual loans:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Commercial, financial and industrial
        
        
        
        
          $ 19 
        
        
        
        
          $ 7 
        
        
        
        
          $ 5 
        
        
        
        
          (73.68%)
        
        
        
        
          (28.57%)
        
      
      
        
        
        
        
        
          Mortgage - Commercial
        
        
        
        
        
        
          8 
        
        
        
        
          19 
        
        
        
        
          22 
        
        
        
        
          nm
        
        
        
        
          15.79%
        
      
      
        
        
        
        
        
          Lease
        
        
        
        
        
        
        
        
        
        
        
        
          15 
        
        
        
        
          15 
        
        
        
        
          15 
        
        
        
        
          0.00%
        
        
        
        
          0.00%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total nonaccrual loans
        
        
        
        
          42 
        
        
        
        
          41 
        
        
        
        
          42 
        
        
        
        
          0.00%
        
        
        
        
          2.44%
        
      
      
        
        
        
          Foreclosed assets
        
        
        
        
        
        
        
        
          - 
        
        
        
        
          1 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          (100.00%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total nonperforming assets
        
        
        
        
          $ 42 
        
        
        
        
          $ 42 
        
        
        
        
          $ 42 
        
        
        
        
          0.00%
        
        
        
        
          0.00%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loans 90 days or more past due and still accruing
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          $ 5 
        
        
        
        
          $ 9 
        
        
        
        
          $ 6 
        
        
        
        
          20.00%
        
        
        
        
          (33.33%)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Analysis of Allowances for Credit Losses
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Beginning balance
        
        
        
        
        
        
        
        
          $ 352 
        
        
        
        
          $ 327 
        
        
        
        
          $ 331 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          (Reversal of) provision for loan losses
        
        
        
        
          (7)
        
        
        
        
          3 
        
        
        
        
          4 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loans charged off:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Commercial, financial and industrial
        
        
        
        
          (11)
        
        
        
        
          (3)
        
        
        
        
          (3)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Consumer
        
        
        
        
        
        
        
        
        
        
          (1)
        
        
        
        
          (1)
        
        
        
        
          (1)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Total loans charged off
        
        
        
        
        
        
          (12)
        
        
        
        
          (4)
        
        
        
        
          (4)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loans recovered:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Commercial, financial and industrial
        
        
        
        
          2 
        
        
        
        
          5 
        
        
        
        
          2 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Consumer
        
        
        
        
        
        
        
        
        
        
          1 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Lease financing
        
        
        
        
        
        
        
        
          4 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Total loans recovered
        
        
        
        
        
        
          7 
        
        
        
        
          5 
        
        
        
        
          2 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Net loans (charged off) recovered
        
        
        
        
          (5)
        
        
        
        
          1 
        
        
        
        
          (2)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Ending balance of allowance for loan losses
        
        
        
        
          $ 340 
        
        
        
        
          $ 331 
        
        
        
        
          $ 333 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Allowance for off-balance sheet
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          commitment losses
        
        
        
        
        
        
        
        
          83 
        
        
        
        
          81 
        
        
        
        
          82 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ - 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Allowances for credit losses
        
        
        
        
        
        
          $ 423 
        
        
        
        
          $ 412 
        
        
        
        
          $ 415 
        
        
        
        
        
        
        
        
        
      
    
    
      
        
          UnionBanCal Corporation and Subsidiaries
        
      
      
        
          
            Net Interest Income (Unaudited)
          
          
            Exhibit 5
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          
            For the Three Months Ended
          
        
        
           
        
        
           
        
        
          
            For the Three Months Ended
          
        
      
      
        
        
        
        
        
        
        
        
        
          March 31, 2006
        
        
        
        
        
        
          March 31, 2007
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          Interest
        
        
        
        
          Average
        
        
        
        
        
        
        
        
          Interest
        
        
        
        
          Average
        
      
      
        
        
        
        
        
        
        
        
        
          Average
        
        
        
        
          Income/
        
        
        
        
          Yield/
        
        
        
        
        
        
          Average
        
        
        
        
          Income/
        
        
        
        
          Yield/
        
        
        
      
      
        
          (Dollars in thousands)
        
        
        
        
          Balance
        
        
        
        
          Expense (11)
        
        
        
        
          Rate (7) (11)
        
        
          Balance
        
        
        
        
          Expense (11)
        
        
        
        
          Rate (7) (11)
        
      
      
        
          Assets
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loans (12)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          
            Commercial, financial andindustrial
          
        
        
          $ 12,371,594 
        
        
        
        
          $ 195,952 
        
        
        
        
          6.42 
        
        
          %
        
        
        
        
          $ 14,684,098 
        
        
        
        
          $ 237,278 
        
        
        
        
          6.55 
        
        
          %
        
      
      
        
        
        
          Construction
        
        
        
        
          1,523,270 
        
        
        
        
          26,958 
        
        
        
        
          7.18 
        
        
        
        
        
        
          2,233,131 
        
        
        
        
          42,775 
        
        
        
        
          7.77 
        
        
        
      
      
        
        
        
          Residential mortgage
        
        
        
        
          11,446,831 
        
        
        
        
          143,340 
        
        
        
        
          5.01 
        
        
        
        
        
        
          12,386,306 
        
        
        
        
          163,766 
        
        
        
        
          5.29 
        
        
        
      
      
        
        
        
          Commercial mortgage
        
        
        
        
          5,652,445 
        
        
        
        
          97,301 
        
        
        
        
          6.98 
        
        
        
        
        
        
          6,064,169 
        
        
        
        
          106,966 
        
        
        
        
          7.15 
        
        
        
      
      
        
        
        
          Consumer
        
        
        
        
          2,489,296 
        
        
        
        
          45,095 
        
        
        
        
          7.35 
        
        
        
        
        
        
          2,542,507 
        
        
        
        
          48,979 
        
        
        
        
          7.81 
        
        
        
      
      
        
        
        
          Lease financing
        
        
        
        
          568,631 
        
        
        
        
          4,342 
        
        
        
        
          3.05 
        
        
        
        
        
        
          547,803 
        
        
        
        
          3,738 
        
        
        
        
          2.73 
        
        
        
      
      
        
        
        
        
        
          Total loans
        
        
        
        
          34,052,067 
        
        
        
        
          512,988 
        
        
        
        
          6.09 
        
        
        
        
        
        
          38,458,014 
        
        
        
        
          603,502 
        
        
        
        
          6.34 
        
        
        
      
      
        
          Securities - taxable
        
        
        
        
          8,233,854 
        
        
        
        
          96,053 
        
        
        
        
          4.67 
        
        
        
        
        
        
          8,580,315 
        
        
        
        
          107,268 
        
        
        
        
          5.00 
        
        
        
      
      
        
          Securities - tax-exempt
        
        
        
        
          65,204 
        
        
        
        
          1,298 
        
        
        
        
          7.96 
        
        
        
        
        
        
          57,654 
        
        
        
        
          1,154 
        
        
        
        
          8.01 
        
        
        
      
      
        
          Interest bearing deposits in banks Federal funds sold and securities
        
        
        
        
          59,847 
        
        
        
        
          736 
        
        
        
        
          4.99 
        
        
        
        
        
        
          79,562 
        
        
        
        
          1,109 
        
        
        
        
          5.65 
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          purchased under resale agreements
        
        
          345,342 
        
        
        
        
          3,845 
        
        
        
        
          4.52 
        
        
        
        
        
        
          846,042 
        
        
        
        
          11,152 
        
        
        
        
          5.35 
        
        
        
      
      
        
          Trading account assets
        
        
        
        
          328,035 
        
        
        
        
          1,530 
        
        
        
        
          1.89 
        
        
        
        
        
        
          333,363 
        
        
        
        
          1,701 
        
        
        
        
          2.07 
        
        
        
      
      
        
        
        
        
        
          Total earning assets
        
        
        
        
          43,084,349 
        
        
        
        
          616,450 
        
        
        
        
          5.77 
        
        
        
        
        
        
          48,354,950 
        
        
        
        
          725,886 
        
        
        
        
          6.06 
        
        
        
      
      
        
          Allowance for loan losses
        
        
        
        
          (348,626)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          (330,277)
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and due from banks
        
        
        
        
          2,119,926 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,949,232 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Premises and equipment, net
        
        
        
        
          527,001 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          493,055 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other assets
        
        
        
        
          2,633,993 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          2,506,243 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total assets
        
        
        
        
          $ 48,016,643 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 52,973,203 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Liabilities
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Transaction accounts
        
        
        
        
          $ 13,261,888 
        
        
        
        
          62,358 
        
        
        
        
          1.91 
        
        
        
        
        
        
          $ 13,534,373 
        
        
        
        
          91,505 
        
        
        
        
          2.74 
        
        
        
      
      
        
        
        
          Savings and consumer time
        
        
        
        
          4,467,627 
        
        
        
        
          18,487 
        
        
        
        
          1.68 
        
        
        
        
        
        
          4,415,261 
        
        
        
        
          26,957 
        
        
        
        
          2.48 
        
        
        
      
      
        
        
        
          Large time
        
        
        
        
          3,608,597 
        
        
        
        
          34,464 
        
        
        
        
          3.87 
        
        
        
        
        
        
          8,435,137 
        
        
        
        
          103,795 
        
        
        
        
          4.99 
        
        
        
      
      
        
        
        
        
        
          Total interest bearing deposits
        
        
        
        
          21,338,112 
        
        
        
        
          115,309 
        
        
        
        
          2.19 
        
        
        
        
        
        
          26,384,771 
        
        
        
        
          222,257 
        
        
        
        
          3.42 
        
        
        
      
      
        
          Federal funds purchased and securities sold under repurchase 
          agreements
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          874,055 
        
        
        
        
          9,410 
        
        
        
        
          4.37 
        
        
        
        
        
        
          1,046,439 
        
        
        
        
          13,524 
        
        
        
        
          5.24 
        
        
        
      
      
        
          Net funding allocated from (to) discontinued operations (13)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          (57,088)
        
        
        
        
          (608)
        
        
        
        
          4.32 
        
        
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
      
      
        
          Commercial paper
        
        
        
        
          1,242,465 
        
        
        
        
          12,448 
        
        
        
        
          4.06 
        
        
        
        
        
        
          1,783,758 
        
        
        
        
          22,264 
        
        
        
        
          5.06 
        
        
        
      
      
        
          Other borrowed funds
        
        
        
        
          268,262 
        
        
        
        
          2,915 
        
        
        
        
          4.41 
        
        
        
        
        
        
          1,309,102 
        
        
        
        
          17,281 
        
        
        
        
          5.35 
        
        
        
      
      
        
          Medium and long-term debt
        
        
        
        
          800,014 
        
        
        
        
          10,397 
        
        
        
        
          5.27 
        
        
        
        
        
        
          1,371,446 
        
        
        
        
          19,695 
        
        
        
        
          5.82 
        
        
        
      
      
        
          Trust notes
        
        
        
        
          15,280 
        
        
        
        
          238 
        
        
        
        
          6.24 
        
        
        
        
        
        
          14,827 
        
        
        
        
          238 
        
        
        
        
          6.43 
        
        
        
      
      
        
        
        
        
        
          Total borrowed funds
        
        
        
        
          3,142,988 
        
        
        
        
          34,800 
        
        
        
        
          4.49 
        
        
        
        
        
        
          5,525,572 
        
        
        
        
          73,002 
        
        
        
        
          5.36 
        
        
        
      
      
        
        
        
        
        
          Total interest bearing liabilities
        
        
        
        
          24,481,100 
        
        
        
        
          150,109 
        
        
        
        
          2.49 
        
        
        
        
        
        
          31,910,343 
        
        
        
        
          295,259 
        
        
        
        
          3.75 
        
        
        
      
      
        
          Noninterest bearing deposits
        
        
        
        
          17,517,921 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          15,098,291 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other liabilities
        
        
        
        
          1,478,943 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,454,364 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total liabilities
        
        
        
        
          43,477,964 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          48,462,998 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Stockholders' Equity
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Common equity
        
        
        
        
          4,538,679 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          4,510,205 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total stockholders' equity
        
        
        
        
          4,538,679 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          4,510,205 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          
             
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          
            Total liabilities and stockholders'equity
          
        
        
        
        
          $ 48,016,643 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 52,973,203 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Reported Net Interest Income/Margin
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net interest income/margin (taxable-equivalent basis)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          466,341 
        
        
        
        
          4.36 
        
        
          %
        
        
        
        
        
        
        
        
          430,627 
        
        
        
        
          3.58 
        
        
          %
        
      
      
        
          Less: taxable-equivalent adjustment
        
        
        
        
        
        
        
        
          1,248 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          2,115 
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Net interest income
        
        
        
        
        
        
        
        
          $ 465,093 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 428,512 
        
        
        
        
        
        
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
        
      
      
        
        
        
        
        
          Average Assets and Liabilities of Discontinued Operations for Period 
          Ended:
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          March 31, 2006
        
        
        
        
        
        
        
        
        
        
          March 31, 2007
        
      
      
        
        
        
        
        
          Assets
        
        
        
        
        
        
        
        
          $ 618,653 
        
        
        
        
        
        
        
        
        
        
          $ 7 
        
      
      
        
        
        
        
        
          Liabilities
        
        
        
        
        
        
        
        
          $ 561,565 
        
        
        
        
        
        
        
        
        
        
          $ 7 
        
      
      
        
        
        
        
        
          Net Asset
        
        
        
        
        
        
        
        
          $ 57,088 
        
        
        
        
        
        
        
        
        
        
          $ - 
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Refer to Exhibit 8 for footnote explanations.
        
      
    
    
      
        
          UnionBanCal Corporation and Subsidiaries
        
      
      
        
          
            Net Interest Income (Unaudited)
          
          
            Exhibit 6
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          
            For the Three Months Ended
          
        
        
          
            For the Three Months Ended
          
        
        
        
      
      
        
        
        
        
        
        
        
        
        
          December 31, 2006
        
        
          March 31, 2007
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          Interest
        
        
        
        
          Average
        
        
        
        
        
        
        
        
          Interest
        
        
        
        
          Average
        
      
      
        
        
        
        
        
        
        
        
        
          Average
        
        
        
        
          Income/
        
        
        
        
          Yield/
        
        
        
        
        
        
          Average
        
        
        
        
          Income/
        
        
        
        
          Yield/
        
        
        
      
      
        
          (Dollars in thousands)
        
        
        
        
          Balance
        
        
        
        
          Expense (11)
        
        
        
        
          Rate (7) (11)
        
        
          Balance
        
        
        
        
          Expense (11)
        
        
        
        
          Rate (7) (11)
        
      
      
        
          Assets
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loans: (12)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Commercial, financial and industrial
        
        
        
        
          $ 14,173,007 
        
        
        
        
          $ 234,687 
        
        
        
        
          6.57 
        
        
          %
        
        
          $ 14,684,098 
        
        
        
        
          $ 237,278 
        
        
        
        
          6.55 
        
        
          %
        
      
      
        
        
        
          Construction
        
        
        
        
          2,183,227 
        
        
        
        
          42,865 
        
        
        
        
          7.79 
        
        
        
        
        
        
          2,233,131 
        
        
        
        
          42,775 
        
        
        
        
          7.77 
        
        
        
      
      
        
        
        
          Residential mortgage
        
        
        
        
          12,223,931 
        
        
        
        
          159,785 
        
        
        
        
          5.23 
        
        
        
        
        
        
          12,386,306 
        
        
        
        
          163,766 
        
        
        
        
          5.29 
        
        
        
      
      
        
        
        
          Commercial mortgage
        
        
        
        
          5,815,299 
        
        
        
        
          104,633 
        
        
        
        
          7.14 
        
        
        
        
        
        
          6,064,169 
        
        
        
        
          106,966 
        
        
        
        
          7.15 
        
        
        
      
      
        
        
        
          Consumer
        
        
        
        
          2,520,250 
        
        
        
        
          49,813 
        
        
        
        
          7.84 
        
        
        
        
        
        
          2,542,507 
        
        
        
        
          48,979 
        
        
        
        
          7.81 
        
        
        
      
      
        
        
        
          Lease financing
        
        
        
        
          579,601 
        
        
        
        
          3,442 
        
        
        
        
          2.38 
        
        
        
        
        
        
          547,803 
        
        
        
        
          3,738 
        
        
        
        
          2.73 
        
        
        
      
      
        
        
        
        
        
          Total loans
        
        
        
        
          37,495,315 
        
        
        
        
          595,225 
        
        
        
        
          6.31 
        
        
        
        
        
        
          38,458,014 
        
        
        
        
          603,502 
        
        
        
        
          6.34 
        
        
        
      
      
        
          Securities - taxable
        
        
        
        
          8,535,024 
        
        
        
        
          109,738 
        
        
        
        
          5.14 
        
        
        
        
        
        
          8,580,315 
        
        
        
        
          107,268 
        
        
        
        
          5.00 
        
        
        
      
      
        
          Securities - tax-exempt
        
        
        
        
          58,938 
        
        
        
        
          1,178 
        
        
        
        
          8.00 
        
        
        
        
        
        
          57,654 
        
        
        
        
          1,154 
        
        
        
        
          8.01 
        
        
        
      
      
        
          Interest bearing deposits in banks
        
        
        
        
          74,471 
        
        
        
        
          1,047 
        
        
        
        
          5.58 
        
        
        
        
        
        
          79,562 
        
        
        
        
          1,109 
        
        
        
        
          5.65 
        
        
        
      
      
        
          Federal funds sold and securities purchased under resale agreements
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          365,894 
        
        
        
        
          4,924 
        
        
        
        
          5.34 
        
        
        
        
        
        
          846,042 
        
        
        
        
          11,152 
        
        
        
        
          5.35 
        
        
        
      
      
        
          Trading account assets
        
        
        
        
          330,524 
        
        
        
        
          1,791 
        
        
        
        
          2.15 
        
        
        
        
        
        
          333,363 
        
        
        
        
          1,701 
        
        
        
        
          2.07 
        
        
        
      
      
        
        
        
        
        
          Total earning assets
        
        
        
        
          46,860,166 
        
        
        
        
          713,903 
        
        
        
        
          6.06 
        
        
        
        
        
        
          48,354,950 
        
        
        
        
          725,886 
        
        
        
        
          6.06 
        
        
        
      
      
        
          Allowance for loan losses
        
        
        
        
          (327,525)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          (330,277)
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and due from banks
        
        
        
        
          1,963,658 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,949,232 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Premises and equipment, net
        
        
        
        
          504,358 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          493,055 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other assets
        
        
        
        
          2,670,808 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          2,506,243 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total assets
        
        
        
        
          $ 51,671,465 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 52,973,203 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Liabilities
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Transaction accounts
        
        
        
        
          $ 13,475,864 
        
        
        
        
          91,258 
        
        
        
        
          2.69 
        
        
        
        
        
        
          $ 13,534,373 
        
        
        
        
          91,505 
        
        
        
        
          2.74 
        
        
        
      
      
        
        
        
          Savings and consumer time
        
        
        
        
          4,502,954 
        
        
        
        
          27,910 
        
        
        
        
          2.46 
        
        
        
        
        
        
          4,415,261 
        
        
        
        
          26,957 
        
        
        
        
          2.48 
        
        
        
      
      
        
        
        
          Large time
        
        
        
        
          7,208,863 
        
        
        
        
          89,255 
        
        
        
        
          4.91 
        
        
        
        
        
        
          8,435,137 
        
        
        
        
          103,795 
        
        
        
        
          4.99 
        
        
        
      
      
        
        
        
        
        
          Total interest bearing deposits
        
        
        
        
          25,187,681 
        
        
        
        
          208,423 
        
        
        
        
          3.28 
        
        
        
        
        
        
          26,384,771 
        
        
        
        
          222,257 
        
        
        
        
          3.42 
        
        
        
      
      
        
          Federal funds purchased and securities sold under repurchase 
          agreements
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          768,941 
        
        
        
        
          10,054 
        
        
        
        
          5.19 
        
        
        
        
        
        
          1,046,439 
        
        
        
        
          13,524 
        
        
        
        
          5.24 
        
        
        
      
      
        
          Net funding allocated from (to) discontinued operations (13)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          (22,913)
        
        
        
        
          (338)
        
        
        
        
          5.85 
        
        
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
      
      
        
          Commercial paper
        
        
        
        
          1,784,097 
        
        
        
        
          22,595 
        
        
        
        
          5.02 
        
        
        
        
        
        
          1,783,758 
        
        
        
        
          22,264 
        
        
        
        
          5.06 
        
        
        
      
      
        
          Other borrowed funds
        
        
        
        
          223,406 
        
        
        
        
          3,119 
        
        
        
        
          5.54 
        
        
        
        
        
        
          1,309,102 
        
        
        
        
          17,281 
        
        
        
        
          5.35 
        
        
        
      
      
        
          Medium and long-term debt
        
        
        
        
          1,428,937 
        
        
        
        
          21,193 
        
        
        
        
          5.88 
        
        
        
        
        
        
          1,371,446 
        
        
        
        
          19,695 
        
        
        
        
          5.82 
        
        
        
      
      
        
          Trust notes
        
        
        
        
          14,940 
        
        
        
        
          238 
        
        
        
        
          6.38 
        
        
        
        
        
        
          14,827 
        
        
        
        
          238 
        
        
        
        
          6.43 
        
        
        
      
      
        
        
        
        
        
          Total borrowed funds
        
        
        
        
          4,197,408 
        
        
        
        
          56,861 
        
        
        
        
          5.37 
        
        
        
        
        
        
          5,525,572 
        
        
        
        
          73,002 
        
        
        
        
          5.36 
        
        
        
      
      
        
        
        
        
        
          Total interest bearing liabilities
        
        
        
        
          29,385,089 
        
        
        
        
          265,284 
        
        
        
        
          3.58 
        
        
        
        
        
        
          31,910,343 
        
        
        
        
          295,259 
        
        
        
        
          3.75 
        
        
        
      
      
        
          Noninterest bearing deposits
        
        
        
        
          16,132,787 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          15,098,291 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other liabilities
        
        
        
        
          1,514,788 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          1,454,364 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total liabilities
        
        
        
        
          47,032,664 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          48,462,998 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Stockholders' Equity
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Common equity
        
        
        
        
          4,638,801 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          4,510,205 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total stockholders' equity
        
        
        
        
          4,638,801 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          4,510,205 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Total liabilities and stockholders' equity
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          $ 51,671,465 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 52,973,203 
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Reported Net Interest Income/Margin
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net interest income/margin (taxable-equivalent basis)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          448,619 
        
        
        
        
          3.81 
        
        
          %
        
        
        
        
        
        
          430,627 
        
        
        
        
          3.58 
        
        
          %
        
      
      
        
          Less: taxable-equivalent adjustment
        
        
        
        
        
        
          1,923 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          2,115 
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Net interest income
        
        
        
        
        
        
        
        
          $ 446,696 
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 428,512 
        
        
        
        
        
        
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
        
      
      
        
        
        
        
        
          Average Assets and Liabilities of Discontinued Operations for Period 
          Ended:
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          December 31, 2006
        
        
        
        
        
        
        
        
        
        
          March 31, 2007
        
        
        
      
      
        
        
        
        
        
          Assets
        
        
        
        
        
        
        
        
          $ 26,664 
        
        
        
        
        
        
        
        
        
        
          $ 7 
        
        
        
      
      
        
        
        
        
        
          Liabilities
        
        
        
        
        
        
        
        
          $ 3,751 
        
        
        
        
        
        
        
        
        
        
          $ 7 
        
        
        
      
      
        
        
        
        
        
          Net Asset
        
        
        
        
        
        
        
        
          $ 22,913 
        
        
        
        
        
        
        
        
        
        
          $ - 
        
        
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
        
      
      
        
           
        
        
           
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Refer to Exhibit 8 for footnote explanations.
        
      
    
    
      
        
          UnionBanCal Corporation and Subsidiaries
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Noninterest income (Unaudited)
          
          
            Exhibit 7
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Percentage Change to
        
      
      
        
        
        
        
        
        
        
        
        
          For the Three Months Ended
        
        
        
        
          March 31, 2007 From
        
      
      
        
        
        
        
        
        
        
        
        
          March 31,
        
        
        
        
          
            Dec. 31,
          
        
        
        
        
          March 31,
        
        
        
        
          March 31,
        
        
        
        
          
            Dec. 31,
          
        
      
      
        
        
        
          (Dollars in thousands)
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2007 
        
        
        
        
          2006 
        
        
           
        
        
          2006 
        
        
           
        
      
      
        
        
        
          Service charges on deposit accounts
        
        
        
        
          $ 81,635 
        
        
        
        
          $ 77,092 
        
        
        
        
          $ 74,945 
        
        
        
        
          (8.20)
        
        
          %
        
        
          (2.79)
        
        
          %
        
      
      
        
        
        
          Trust and investment management fees
        
        
          50,115 
        
        
        
        
          49,036 
        
        
        
        
          48,560 
        
        
        
        
          (3.10)
        
        
        
        
          (0.97)
        
        
        
      
      
        
        
        
          Insurance commissions
        
        
        
        
          19,518 
        
        
        
        
          17,976 
        
        
        
        
          20,250 
        
        
        
        
          3.75 
        
        
        
        
          12.65 
        
        
        
      
      
        
        
        
          Brokerage commissions and fees
        
        
        
        
          7,795 
        
        
        
        
          9,155 
        
        
        
        
          9,660 
        
        
        
        
          23.93 
        
        
        
        
          5.52 
        
        
        
      
      
        
        
        
          Merchant banking fees
        
        
        
        
          8,229 
        
        
        
        
          13,905 
        
        
        
        
          9,077 
        
        
        
        
          10.31 
        
        
        
        
          (34.72)
        
        
        
      
      
        
        
        
          Foreign exchange gains, net
        
        
        
        
          7,818 
        
        
        
        
          7,916 
        
        
        
        
          7,594 
        
        
        
        
          (2.87)
        
        
        
        
          (4.07)
        
        
        
      
      
        
        
        
          Card processing fees, net
        
        
        
        
          6,697 
        
        
        
        
          7,256 
        
        
        
        
          7,127 
        
        
        
        
          6.42 
        
        
        
        
          (1.78)
        
        
        
      
      
        
        
        
          Securities gains (losses), net
        
        
        
        
          (214)
        
        
        
        
          420 
        
        
        
        
          1,220 
        
        
        
        
          nm
        
        
        
        
          nm
        
        
        
      
      
        
        
        
          Gain on private capital investments, net
        
        
          2,827 
        
        
        
        
          8,902 
        
        
        
        
          9,095 
        
        
        
        
          nm
        
        
        
        
          2.17 
        
        
        
      
      
        
        
        
          Other
        
        
        
        
          33,490 
        
        
        
        
          32,448 
        
        
        
        
          35,030 
        
        
        
        
          4.60 
        
        
        
        
          7.96 
        
        
        
      
      
        
        
        
        
        
          Total noninterest income
        
        
        
        
          $ 217,910 
        
        
        
        
          $ 224,106 
        
        
        
        
          $ 222,558 
        
        
        
        
          2.13 
        
        
          %
        
        
          (0.69)
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Noninterest expense (Unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Percentage Change to
        
      
      
        
        
        
        
        
        
        
        
        
          For the Three Months Ended
        
        
        
        
          March 31, 2007 From
        
      
      
        
        
        
        
        
        
        
        
        
          March 31,
        
        
        
        
          
            Dec. 31,
          
        
        
        
        
          March 31,
        
        
        
        
          March 31,
        
        
        
        
          
            Dec. 31,
          
        
      
      
        
        
        
          (Dollars in thousands)
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2007 
        
        
        
        
          2006 
        
        
           
        
        
          2006 
        
        
           
        
      
      
        
        
        
          Salaries and other compensation
        
        
        
        
          $ 194,259 
        
        
        
        
          $ 202,511 
        
        
        
        
          $ 207,657 
        
        
        
        
          6.90 
        
        
          %
        
        
          2.54 
        
        
          %
        
      
      
        
        
        
          Employee benefits
        
        
        
        
          58,236 
        
        
        
        
          48,280 
        
        
        
        
          50,858 
        
        
        
        
          (12.67)
        
        
        
        
          5.34 
        
        
        
      
      
        
        
        
        
        
          Salaries and employee benefits
        
        
        
        
          252,495 
        
        
        
        
          250,791 
        
        
        
        
          258,515 
        
        
        
        
          2.38 
        
        
        
        
          3.08 
        
        
        
      
      
        
        
        
          Net occupancy
        
        
        
        
          32,837 
        
        
        
        
          38,662 
        
        
        
        
          35,137 
        
        
        
        
          7.00 
        
        
        
        
          (9.12)
        
        
        
      
      
        
        
        
          Outside services
        
        
        
        
          28,609 
        
        
        
        
          26,184 
        
        
        
        
          19,836 
        
        
        
        
          (30.67)
        
        
        
        
          (24.24)
        
        
        
      
      
        
        
        
          Professional services
        
        
        
        
          14,547 
        
        
        
        
          19,862 
        
        
        
        
          17,087 
        
        
        
        
          17.46 
        
        
        
        
          (13.97)
        
        
        
      
      
        
        
        
          Equipment
        
        
        
        
          17,922 
        
        
        
        
          17,678 
        
        
        
        
          16,554 
        
        
        
        
          (7.63)
        
        
        
        
          (6.36)
        
        
        
      
      
        
        
        
          Software
        
        
        
        
          16,344 
        
        
        
        
          16,978 
        
        
        
        
          14,196 
        
        
        
        
          (13.14)
        
        
        
        
          (16.39)
        
        
        
      
      
        
        
        
          Communications
        
        
        
        
          10,552 
        
        
        
        
          9,876 
        
        
        
        
          9,791 
        
        
        
        
          (7.21)
        
        
        
        
          (0.86)
        
        
        
      
      
        
        
        
          Advertising and public relations
        
        
        
        
          10,231 
        
        
        
        
          10,780 
        
        
        
        
          8,389 
        
        
        
        
          (18.00)
        
        
        
        
          (22.18)
        
        
        
      
      
        
        
        
          Data processing
        
        
        
        
          7,398 
        
        
        
        
          8,668 
        
        
        
        
          8,241 
        
        
        
        
          11.40 
        
        
        
        
          (4.93)
        
        
        
      
      
        
        
        
          Intangible asset amortization
        
        
        
        
          3,430 
        
        
        
        
          3,402 
        
        
        
        
          2,243 
        
        
        
        
          (34.61)
        
        
        
        
          (34.07)
        
        
        
      
      
        
        
        
          Foreclosed asset expense (income)
        
        
        
        
          (7,367)
        
        
        
        
          10 
        
        
        
        
          9 
        
        
        
        
          nm
        
        
        
        
          (10.00)
        
        
        
      
      
        
        
        
          (Reversal of) provision for losses on
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          off-balance sheet commitments
        
        
        
        
          (3,000)
        
        
        
        
          2,000 
        
        
        
        
          1,000 
        
        
        
        
          nm
        
        
        
        
          (50.00)
        
        
        
      
      
        
        
        
          Other
        
        
        
        
          30,546 
        
        
        
        
          36,802 
        
        
        
        
          31,093 
        
        
        
        
          1.79 
        
        
        
        
          (15.51)
        
        
        
      
      
        
        
        
        
        
          Total noninterest expense
        
        
        
        
          $ 414,544 
        
        
        
        
          $ 441,693 
        
        
        
        
          $ 422,091 
        
        
        
        
          1.82 
        
        
          %
        
        
          (4.44)
        
        
          %
        
      
    
    
      
        
          UnionBanCal Corporation and Subsidiaries
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          
            Footnotes
          
          
            Exhibit 8
          
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          (1)
        
        
        
        
        
        
          Taxable-equivalent basis.
        
      
      
        
          (2)
        
        
        
        
        
        
          
            Dividends per share reflect dividends declared on
          
          
            UnionBanCal Corporation's common stock outstanding as of the
          
          
            declaration date.
          
        
      
      
        
          (3)
        
        
        
        
        
        
          
            Common shares outstanding reflect common shares issued less
          
          
            treasury shares.
          
        
      
      
        
          (4)
        
        
        
        
        
        
          
            For the periods ended December 31, 2006 and March 31, 2007,
          
          
            weighted average common shares outstanding (basic) excludes
          
          
            nonvested restricted shares but includes the impact of those
          
          
            shares in the calculation of diluted shares. The impact of
          
          
            this change on the previous period was not material.
          
        
      
      
        
        
        
        
        
        
      
      
        
        
        
        
        
        
      
      
        
          (5)
        
        
        
        
        
        
          
            End of period total assets and assets used in calculating
          
          
            these ratios include those of discontinued operations.
          
        
      
      
        
          (6)
        
        
        
        
        
        
          
            Average balances used to calculate our financial ratios are
          
          
            based on continuing operations data only, unless otherwise
          
          
            indicated.
          
        
      
      
        
          (7)
        
        
        
        
        
        
          Annualized.
        
      
      
        
          (8)
        
        
        
        
        
        
          
            The efficiency ratio is noninterest expense, excluding
          
          
            foreclosed asset expense (income) and the (reversal of)
          
          
            provision for losses on off-balance sheet commitments, as a
          
          
            percentage of net interest income (taxable-equivalent basis)
          
          
            and noninterest income, and is calculated for continuing
          
          
            operations only.
          
        
      
      
        
        
        
        
        
        
      
      
        
        
        
        
        
        
      
      
        
          (9)
        
        
        
        
        
        
          
            Estimated as of March 31, 2007. The regulatory capital and
          
          
            leverage ratios include discontinued operations.
          
        
      
      
        
          (10)
        
        
        
        
        
        
          
            The allowance for credit losses ratios include the
          
          
            allowances for loan losses and losses on off-balance sheet
          
          
            commitments. These ratios relate to continuing operations
          
          
            only.
          
        
      
      
        
        
        
        
        
        
      
      
        
          (11)
        
        
        
        
        
        
          
            Yields and interest income are presented on a
          
          
            taxable-equivalent basis using the federal statutory tax
          
          
            rate of 35 percent.
          
        
      
      
        
          (12)
        
        
        
        
        
        
          
            Average balances on loans outstanding include all
          
          
            nonperforming loans and loans held for sale. The amortized
          
          
            portion of net loan origination fees (costs) is included in
          
          
            interest income on loans, representing an adjustment to the
          
          
            yield.
          
        
      
      
        
        
        
        
        
        
      
      
        
          (13)
        
        
        
        
        
        
          
            Net funding allocated from (to) discontinued operations
          
          
            represents the shortage (excess) of assets over liabilities
          
          
            of discontinued operations. The expense (earning) on funds
          
          
            allocated from (to) discontinued operations is calculated by
          
          
            taking the net balance and applying an earnings rate or a
          
          
            cost of funds equivalent to the corresponding period's
          
          
            Federal funds purchased rate.
          
        
      
      
        
        
        
        
        
        
      
      
        
        
        
        
        
        
      
      
        
          nm = not meaningful