Read Larry Connors' blog – Short Term Trading Strategies
Highlights:
-- First quarter loss from continuing operations was $10 million. Excluding after-tax net expenses of $21 million related to the November 2008 privatization of UnionBanCal Corporation, first quarter income from continuing operations was $11 million.
-- First quarter revenue was up 12 percent year-over-year and down 0.5 percent compared with fourth quarter 2008
-- First quarter net interest income was up 21 percent year-over-year and flat compared with fourth quarter 2008
-- First quarter average total loans increased 17 percent year-over-year and 2 percent versus fourth quarter 2008
-- First quarter average core deposits were up 24 percent year-over-year and 11 percent versus fourth quarter 2008
-- First quarter net interest margin was 3.79 percent, up 24 basis points year-over-year and down 7 basis points versus fourth quarter 2008
-- First quarter average all-in cost of funds was 1.03 percent
-- First quarter asset quality metrics: -- Total provision for credit losses was $275 million
-- Net loans charged-off were $116 million, or 0.95 percent annualized of average total loans
-- Nonperforming assets were $835 million, or 1.21 percent of total assets, at quarter-end
-- Allowance for credit losses to nonaccrual loans was 126 percent at quarter-end
-- Tangible common equity ratio was 7.12 percent at March 31, 2009
UnionBanCal Corporation (the Company or UB | Quote | Chart | News | PowerRating) today reported a first quarter 2009 net loss of $9.8 million. Loss from continuing operations for first quarter 2009 was also $9.8 million, compared with income from continuing operations of $122.4 million a year earlier, and loss from continuing operations of $82.9 million in fourth quarter 2008. First quarter 2009 loss from continuing operations included after-tax net expenses of $21 million due to the privatization transaction, and fourth quarter 2008 loss from continuing operations included after-tax net expenses of $77 million due to the privatization transaction. Mitsubishi UFJ Financial Group, Inc. (MUFG), through its wholly-owned subsidiary, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), completed its acquisition of all of the outstanding shares of the Company's common stock (the "privatization transaction"), on November 4, 2008.
Summary of First Quarter Results From Continuing Operations
First Quarter Total Revenue
For first quarter 2009, total revenue (taxable-equivalent net interest income plus noninterest income) was $737 million, up 12 percent compared with first quarter 2008. Net interest income increased 21 percent and noninterest income decreased 11 percent. Average total loans increased $7.1 billion, or 17 percent, average interest bearing deposits increased $3.1 billion, or 10 percent, and average noninterest bearing deposits were flat. The net interest margin in first quarter 2009 was 3.79 percent, an increase of 24 basis points compared with first quarter 2008.
Average noninterest bearing deposits represented 26.9 percent of average total deposits in first quarter 2009. The annualized average all-in cost of funds was 1.03 percent, compared with 2.26 percent in first quarter 2008. The Company's average core deposit-to-loan ratio was 79.1 percent in first quarter 2009.
Compared with fourth quarter 2008, total revenue was down 0.5 percent, with net interest income flat and noninterest income down 2.4 percent. Average total loans increased $0.8 billion, or 1.6 percent, average interest bearing deposits increased $2.9 billion, or 9.4 percent, and average noninterest bearing deposits decreased $0.3 billion, or 2.7 percent. The net interest margin decreased 7 basis points compared with fourth quarter 2008.
First Quarter Noninterest Income and Noninterest Expense
For first quarter 2009, noninterest income was $175 million, down $21 million, or 11 percent, from the same quarter a year ago, primarily due to a $14.2 million pre-tax gain on the partial redemption of Visa Inc. common stock recorded in first quarter 2008. First quarter 2009 noninterest income decreased $4 million, or 2.4 percent, compared with fourth quarter 2008.
Noninterest expense for first quarter 2009 was $521 million, an increase of $118 million, or 29.3 percent, compared with first quarter 2008. The increase was primarily due to expenses related to the privatization transaction of $69 million, primarily classified in privatization-related expense and intangible asset amortization expense; an increase in regulatory agencies expense of $15 million, primarily due to an industry-wide increase in the FDIC assessment rate, effective January 1, 2009; and an increase in the provision for losses on off-balance sheet commitments of $18 million. Salaries and other compensation expense decreased $4 million compared with first quarter 2008, primarily due to lower accruals for performance-related incentive expense.
Noninterest expense for first quarter 2009 decreased $109 million, or 17.3 percent, compared with fourth quarter 2008. The decrease was primarily due to a $59 million decrease in expenses associated with the privatization transaction, primarily classified in privatization-related expense and intangible asset amortization expense; and a $41 million decrease in other noninterest expense, primarily due to lawsuit settlements recorded in fourth quarter 2008. Regulatory agencies expense increased $10 million, primarily due to higher FDIC deposit insurance assessments. The provision for off-balance sheet losses increased $12 million, compared with fourth quarter 2008.
Balance Sheet
At March 31, 2009, the Company had total assets of $68.7 billion, up $10.8 billion, or 19 percent, compared with March 31, 2008. Total loans were $49.4 billion, up $5.9 billion, or 14 percent, compared with March 31, 2008. At March 31, 2009, the Company had goodwill and intangibles of $3.0 billion, up $2.7 billion compared with March 31, 2008, due to the privatization transaction, which closed during fourth quarter 2008.
At March 31, 2009, the Company had total liabilities of $61.3 billion, up $8.0 billion, or 15 percent, compared with March 31, 2008. Total deposits were $48.9 billion, up $3.6 billion, or 8 percent. Core deposits at period-end were $41.6 billion, resulting in a core deposit-to-loan ratio of 84 percent.
Credit Quality
Nonperforming assets at March 31, 2009, were $835 million, or 1.21 percent of total assets. This compares with $436 million, or 0.62 percent of total assets, at December 31, 2008, and $132 million, or 0.23 percent of total assets, at March 31, 2008. The increase in nonperforming assets was primarily due to higher levels of nonaccrual loans in all categories, reflecting weak economic conditions, and a previously-disclosed change in accounting policy for residential and home equity loans 90 days or more past due, which accounted for $120 million of the increase versus both year-end and one year earlier.
For first quarter 2009, the total provision for credit losses was $275 million and net loans charged-off were $116 million, or 0.95 percent annualized of average total loans. For fourth quarter 2008, the total provision for credit losses was $245 million and net loans charged-off were $65 million, or 0.52 percent annualized of average total loans. For first quarter 2008, the total provision for credit losses was $80 million and net loans charged-off were $12 million, or 0.11 percent annualized of average total loans.
Net loans charged-off in first quarter 2009 were concentrated in the commercial, financial and industrial portfolio. Net loans charged-off in the construction portfolio were only $1 million, and net loans charged-off in the residential mortgage portfolio were only $10 million.
The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off-balance sheet commitments, which is classified in noninterest expense. In first quarter 2009, the provision for loan losses was $249 million, the provision for losses on off-balance sheet commitments was $26 million, and the total provision for credit losses was $275 million.
At March 31, 2009, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 2.07 percent and 126 percent, respectively.
Capital and Liquidity
Total stockholder's equity was $7.5 billion at March 31, 2009, up $2.8 billion compared with March 31, 2008, primarily due to a $2 billion increase in goodwill related to the privatization transaction, and a $1 billion capital contribution from BTMU in fourth quarter 2008. The Company's tangible common equity ratio increased to 7.12 percent at March 31, 2009, compared to 6.96 percent at December 31, 2008. The Company's Tier I and total risk-based capital ratios at March 31, 2009, were 8.53 percent and 11.35 percent, respectively.
The Company maintains diverse sources of wholesale funding capacity and a solid core deposit base, which has resulted in healthy liquidity. Wholesale funding declined to $12.6 billion at March 31, 2009, compared to $17 billion at December 31, 2008, primarily due to a $3.9 billion increase in period-end core deposits. The Company also maintains significant sources of contingent liquidity through the Federal Home Loan Bank and Federal Reserve Bank.
Non-GAAP Financial Measures
This press release contains certain references to financial measures identified as excluding privatization transaction expenses, 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 are unusual and substantial costs incurred in the fourth quarter of 2008 and first quarter of 2009, 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. 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 the Company's intentions regarding and resources for funding.
There are numerous risks and uncertainties that could and will cause actual results to differ materially from those discussed in the Company's forward-looking statements. Many of these factors are beyond the Company's ability to control or predict and could have a material adverse effect on the Company's financial condition, and results of operations or prospects. Such risks and uncertainties include, but are not limited to, further declines or disruptions in the financial markets which may adversely affect the Company or the Company's borrowers or other customers; continued or worsening adverse economic conditions in the United States; continued or worsening 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 ownership interest in UnionBanCal Corporation by BTMU, which is a wholly-owned subsidiary of MUFG; 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; effects of governmental fiscal or monetary policies; legal or regulatory proceedings or investigations; 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 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.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $68.7 billion at March 31, 2009. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. Union Bank is California's fifth largest bank by deposits. The bank has 335 banking offices in California, Oregon and Washington, and two international offices. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. (NYSE: MTU). Visit www.unionbank.com for more information.
UnionBanCal Corporation and Subsidiaries
Financial Highlights (Unaudited)
Exhibit 1
Percent Change to
As of and for the Three Months Ended March 31, 2009 from
March 31, December 31, March 31, March 31, December 31,
(Dollars in thousands) 2008 2008(1) 2009(1) 2008 2008
Results of operations:
Net interest income (2) $ 463,104 $ 562,373 $ 562,620 21.49 % 0.04 %
Noninterest income 195,396 178,913 174,716 (10.58 %) (2.35 %)
Total revenue 658,500 741,286 737,336 11.97 % (0.53 %)
Noninterest expense 403,206 630,366 521,383 29.31 % (17.29 %)
Provision for loan losses 72,000 231,000 249,000 nm 7.79 %
Income (loss) from continuing operations before income taxes (2)
183,294 (120,080 ) (33,047 ) nm 72.48 %
Taxable-equivalent adjustment 2,526 2,407 2,617 3.60 % 8.72 %
Income tax expense (benefit) 58,370 (39,625 ) (25,856 ) nm 34.75 %
Income (loss) from continuing operations 122,398 (82,862 ) (9,808 ) nm 88.16 %
Loss from discontinued operations (13,808 ) (3,018 ) - (100.00 %) (100.00 %)
Net income (loss) $ 108,590 $ (85,880 ) $ (9,808 ) nm 88.58 %
Balance sheet (end of period):
Total assets (3) $ 57,933,325 $ 70,121,390 $ 68,725,270 18.63 % (1.99 %)
Total loans 43,499,968 49,585,550 49,441,063 13.66 % (0.29 %)
Nonperforming assets 131,687 436,515 834,738 nm 91.23 %
Total deposits 45,240,821 46,049,769 48,878,733 8.04 % 6.14 %
Medium- and long-term debt 1,963,952 4,288,488 5,140,931 nm 19.88 %
Stockholder's equity 4,713,206 7,484,305 7,475,472 58.61 % (0.12 %)
Balance sheet (period average):
Total assets $ 56,632,995 $ 66,521,518 $ 67,072,499 18.43 % 0.83 %
Total loans 42,701,453 49,012,819 49,789,046 16.60 % 1.58 %
Earning assets 52,188,085 58,137,210 59,626,207 14.25 % 2.56 %
Total deposits 43,613,754 44,060,607 46,633,173 6.92 % 5.84 %
Stockholder's equity 4,718,409 6,748,937 7,336,212 55.48 % 8.70 %
Financial ratios (4):
Return on average assets (5):
From continuing operations 0.87 % (0.50 %) (0.06 %)
Net income (loss) 0.77 % (0.51 %) (0.06 %)
Return on average stockholder's equity (5):
From continuing operations 10.43 % (4.88 %) (0.54 %)
Net income (loss) 9.26 % (5.06 %) (0.54 %)
Efficiency ratio (6) 58.61 % 81.58 % 65.69 %
Net interest margin (2) 3.55 % 3.86 % 3.79 %
Tangible common equity ratio (7) 7.42 % 6.96 % 7.12 %
Tier 1 risk-based capital ratio (3) (8) 8.07 % 8.78 % 8.53 %
Total risk-based capital ratio (3) (8) 10.97 % 11.63 % 11.35 %
Leverage ratio (3) (8) 8.09 % 8.42 % 8.40 %
Allowance for loan losses to:
Total loans 1.06 % 1.49 % 1.76 %
Nonaccrual loans 367.17 % 177.79 % 107.41 %
Allowances for credit losses to (9) :
Total loans 1.29 % 1.74 % 2.07 %
Nonaccrual loans 445.20 % 208.01 % 126.10 %
Net loans charged off to average
total loans (5) 0.11 % 0.52 % 0.95 %
Nonperforming assets to total loans and
foreclosed assets 0.30 % 0.88 % 1.69 %
Nonperforming assets to total assets (3) 0.23 % 0.62 % 1.21 %
Selected financial ratios excluding impact of
privatization transaction (1) (4) (14):
From continuing operations:
Return on average assets 0.87 % (0.04 %) 0.07 %
Return on average stockholder's equity 10.43 % (0.54 %) 0.91 %
Efficiency ratio (6) 58.61 % 65.30 % 59.08 %
Refer to Exhibit 9 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, December 31, March 31,
(Amounts in thousands) 2008 2008(1) 2009(1)
Interest Income (2)
Loans $ 633,362 $ 667,373 $ 604,067
Securities 106,045 112,422 103,281
Interest bearing deposits in banks 128 71 900
Federal funds sold and securities purchased under resale agreements 2,693 899 141
Trading account assets 2,804 527 158
Total interest income 745,032 781,292 708,547
Interest Expense
Deposits 220,660 138,142 105,038
Federal funds purchased and securities sold under repurchase 15,715 3,473 53
agreements
Commercial paper 9,792 5,640 1,592
Medium- and long-term debt 19,457 34,291 27,529
Trust notes 238 238 238
Other borrowed funds 16,066 37,135 11,477
Total interest expense 281,928 218,919 145,927
Net Interest Income (2) 463,104 562,373 562,620
Provision for loan losses 72,000 231,000 249,000
Net interest income after provision for loan losses 391,104 331,373 313,620
Noninterest Income
Service charges on deposit accounts 74,736 73,444 71,322
Trust and investment management fees 43,388 37,427 33,907
Trading account activities 11,012 14,434 22,692
Merchant banking fees 11,793 13,879 13,832
Brokerage commissions and fees 9,859 8,877 8,307
Card processing fees, net 7,764 7,493 7,536
Securities losses, net (2 ) (4 ) -
Other 36,846 23,363 17,120
Total noninterest income 195,396 178,913 174,716
Noninterest Expense
Salaries and employee benefits 241,670 254,983 243,563
Net occupancy 36,202 41,558 41,921
Intangible asset amortization 670 42,924 40,887
Outside services 17,009 20,888 18,834
Regulatory agencies 2,609 7,895 17,938
Professional services 14,597 23,122 15,938
Equipment 15,347 16,646 15,413
Software 14,795 16,432 15,038
Foreclosed asset expense 89 323 886
Provision for losses on off-balance sheet commitments 8,000 14,000 26,000
Privatization-related expense - 84,312 26,819
Other 52,218 107,283 58,146
Total noninterest expense 403,206 630,366 521,383
Income (loss) from continuing operations before income taxes (2) 183,294 (120,080 ) (33,047 )
Taxable-equivalent adjustment 2,526 2,407 2,617
Income tax expense (benefit) 58,370 (39,625 ) (25,856 )
Income (Loss) from Continuing Operations 122,398 (82,862 ) (9,808 )
Loss from discontinued operations before income taxes (17,585 ) (4,676 ) -
Income tax benefit (3,777 ) (1,658 ) -
Loss from Discontinued Operations (13,808 ) (3,018 ) -
Net Income (Loss) $ 108,590 $ (85,880 ) $ (9,808 )
Refer to Exhibit 9 for footnote explanations.
UnionBanCal Corporation and Subsidiaries
Consolidated Balance Sheet
Exhibit 3
(Unaudited) (Unaudited)
March 31, December 31, March 31,
(Dollars in thousands) 2008 2008(1) 2009(1)
Assets
Cash and due from banks $ 2,071,969 $ 1,568,578 $ 1,388,279
Interest bearing deposits in banks 999 2,872,698 2,445,861
Federal funds sold and securities purchased under resale agreements 125,940 63,069 110,083
Total cash and cash equivalents 2,198,908 4,504,345 3,944,223
Trading account assets:
Pledged as collateral - 6,283 8,295
Held in portfolio 811,509 1,210,496 1,149,832
Securities available for sale:
Pledged as collateral 642,346 54,525 43,374
Held in portfolio 7,667,959 8,140,013 7,506,069
Securities held to maturity (fair value: March 31, 2009, $959,137) - - 1,150,342
Loans (net of allowance for loan losses: March 31, 2008, $462,943; 43,037,025 48,847,783 48,570,878
December 31, 2008, $737,767; March 31, 2009, $870,185)
Due from customers on acceptances 15,984 23,131 15,077
Premises and equipment, net 486,469 680,004 670,376
Intangible assets, net 5,788 713,485 672,568
Goodwill 355,287 2,369,326 2,369,326
Other assets 2,610,131 3,571,995 2,624,910
Assets of discontinued operations to be disposed or sold 101,919 4 -
Total assets $ 57,933,325 $ 70,121,390 $ 68,725,270
Liabilities
Noninterest bearing $ 13,997,843 $ 13,566,873 $ 13,543,015
Interest bearing 31,242,978 32,482,896 35,335,718
Total deposits 45,240,821 46,049,769 48,878,733
Federal funds purchased and securities sold under repurchase 1,785,044 172,758 320,376
agreements
Commercial paper 1,299,930 1,164,327 749,381
Other borrowed funds 921,516 8,196,597 3,861,905
Trading account liabilities 629,166 1,034,663 965,105
Acceptances outstanding 15,984 23,131 15,077
Other liabilities 1,214,214 1,685,412 1,304,423
Medium- and long-term debt 1,963,952 4,288,488 5,140,931
Junior subordinated debt payable to subsidiary grantor trust 14,319 13,980 13,867
Liabilities of discontinued operations to be extinguished or assumed 135,173 7,960 -
Total liabilities 53,220,119 62,637,085 61,249,798
Stockholder's Equity
Preferred stock:
Authorized 5,000,000 shares; no shares issued or outstanding as of - - -
March 31, 2008, December 31, 2008 and March 31, 2009
Common stock, par value $1 per share:
Authorized 300,000,000 shares; issued 157,670,426 shares as of 157,670 136,331 136,331
March 31, 2008, 136,330,829 shares as of December 31, 2008 and
136,330,829 shares as of March 31, 2009
Additional paid-in capital 1,167,391 3,195,023 3,195,023
Treasury stock - 19,725,529 shares as of March 31, 2008, no shares (1,202,685 ) - -
as of December 31, 2008 and March 31, 2009
Retained earnings 4,949,040 4,964,802 4,954,994
Accumulated other comprehensive loss (358,210 ) (811,851 ) (810,876 )
Total stockholder's equity 4,713,206 7,484,305 7,475,472
Total liabilities and stockholder's equity $ 57,933,325 $ 70,121,390 $ 68,725,270
Refer to Exhibit 9 for footnote explanations.
UnionBanCal Corporation and Subsidiaries
Loans (Unaudited)
Exhibit 4
Percent Change to
Three Months Ended March 31, 2009 from
March 31, December 31, March 31, March 31, December 31,
(Dollars in millions) 2008 2008(1) 2009(1) 2008 2008
Loans (period average)
Commercial, financial and industrial $ 15,569 $ 18,297 $ 18,498 18.81 % 1.10 %
Construction 2,474 2,686 2,734 10.49 % 1.77 %
Mortgage - Commercial 7,251 8,087 8,253 13.82 % 2.06 %
Mortgage - Residential 13,988 15,698 15,919 13.81 % 1.41 %
Consumer 2,686 3,589 3,722 38.58 % 3.72 %
Lease financing 650 649 653 0.41 % 0.61 %
Total loans held to maturity 42,618 49,005 49,779 16.80 % 1.58 %
Total loans held for sale 83 8 10 (87.82 %) 26.35 %
Total loans $ 42,701 $ 49,013 $ 49,789 16.60 % 1.58 %
Nonperforming Assets (period end)
Nonaccrual loans:
Commercial, financial and industrial $ 47 $ 260 $ 347 nm 33.46 %
Construction 55 99 218 nm nm
Mortgage - Commercial 24 56 125 nm nm
Mortgage - Residential - - 102 nm nm
Consumer and other - - 18 nm nm
Total nonaccrual loans 126 415 810 nm 95.18 %
Restructured loans:
Mortgage - Residential 1 1 3 nm nm
Foreclosed assets 5 20 22 nm 10.00 %
Total nonperforming assets $ 132 $ 436 835 nm 91.51 %
Loans 90 days or more past due and still accruing $ 30 $ 71 24 (20.00 %) (66.20 %)
Analysis of Allowances for Credit Losses
Beginning balance $ 403 $ 581 $ 738
Provision for loan losses 72 231 249
Loans charged off:
Commercial, financial and industrial (10 ) (49 ) (96 )
Construction - (7 ) (2 )
Mortgage - Residential - (3 ) (10 )
Consumer (3 ) (8 ) (10 )
Total loans charged off (13 ) (67 ) (118 )
Loans recovered:
Commercial, financial and industrial 1 1 1
Construction - 1 1
Total loans recovered 1 2 2
Net loans recovered (charged off) (12 ) (65 ) (116 )
Adjustment for impaired loans related to privatization - (8 ) (1 )
Foreign translation adjustment - (1 ) -
Ending balance of allowance for loan losses 463 738 870
Allowance for off-balance sheet commitment losses 98 125 151
Allowances for credit losses $ 561 $ 863 $ 1,021
Refer to Exhibit 9 for footnote explanations.
UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 5
For the Three Months Ended
3/31/2008 3/31/2009(1)
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense(2) Rate(2)(5) Balance Expense(2) Rate(2)(5)
Assets
Loans (10)
Commercial, financial and industrial $ 15,647,162 $ 238,303 6.13 % $ 18,503,965 $ 193,787 4.25 %
Construction 2,474,323 36,617 5.95 2,733,630 19,261 2.86
Mortgage - Residential 13,992,743 192,785 5.51 15,923,191 234,438 5.89
Mortgage - Commercial 7,250,747 112,970 6.23 8,253,324 102,389 4.96
Consumer 2,686,635 46,390 6.94 3,722,252 46,539 5.07
Lease financing 649,843 6,297 3.88 652,684 7,653 4.69
Total loans 42,701,453 633,362 5.95 49,789,046 604,067 4.88
Securities - taxable 8,355,943 104,963 5.02 8,319,754 102,256 4.92
Securities - tax-exempt 53,359 1,082 8.11 50,417 1,025 8.13
Interest bearing deposits in banks (11) 29,869 128 1.72 4,220 900 0.48
Federal funds sold and securities purchased under resale agreements 328,145 2,693 3.30 196,567 141 0.29
Trading account assets 719,316 2,804 1.57 1,266,203 158 0.05
Total earning assets 52,188,085 745,032 5.72 59,626,207 708,547 4.78
Allowance for loan losses (399,280 ) (708,736 )
Cash and due from banks (11) 1,757,362 2,142,198
Premises and equipment, net 483,815 674,021
Other assets 2,603,013 5,338,809
Total assets $ 56,632,995 $ 67,072,499
Liabilities
Deposits:
Transaction accounts $ 14,864,561 82,915 2.24 $ 22,497,062 61,097 1.10
Savings and consumer time 4,179,663 23,529 2.26 4,367,945 15,939 1.48
Large time 11,962,678 114,216 3.84 7,232,767 28,002 1.57
Total interest bearing deposits 31,006,902 220,660 2.86 34,097,774 105,038 1.25
Federal funds purchased and securities sold under repurchase 1,950,692 15,566 3.21 251,946 53 0.09
agreements
Net funding allocated from (to) discontinued operations (12) 16,992 149 3.53 - - -
Commercial paper 1,207,510 9,792 3.26 721,416 1,592 0.89
Other borrowed funds (13) 1,566,297 16,066 4.13 5,083,086 11,477 0.92
Medium and long-term debt 1,846,885 19,457 4.24 4,743,352 27,529 2.35
Trust notes 14,374 238 6.63 13,922 238 6.84
Total borrowed funds 6,602,750 61,268 3.73 10,813,722 40,889 1.53
Total interest bearing liabilities 37,609,652 281,928 3.01 44,911,496 145,927 1.32
Noninterest bearing deposits 12,606,852 12,535,399
Other liabilities 1,698,082 2,289,392
Total liabilities 51,914,586 59,736,287
Stockholder's Equity
Common equity 4,718,409 7,336,212
Total stockholder's equity 4,718,409 7,336,212
Total liabilities and stockholder's equity $ 56,632,995 $ 67,072,499
Reported Net Interest Income/Margin
Net interest income/margin (taxable-equivalent basis) 463,104 3.55 % 562,620 3.79 %
Less: taxable-equivalent adjustment 2,526 2,617
Net interest income $ 460,578 $ 560,003
Average Assets and Liabilities of Discontinued Operations for Period
Ended:
March 31, 2008 March 31, 2009
Assets $ 123,169 $ -
Liabilities $ 140,161 $ -
Net Liabilities $ (16,992 ) $ -
Refer to Exhibit 9 for footnote explanations.
UnionBanCal Corporation and Subsidiaries
Net Interest Income (Unaudited)
Exhibit 6
For the Three Months Ended
12/31/2008(1) 3/31/2009(1)
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense(2) Rate(2)(5) Balance Expense(2) Rate(2)(5)
Assets
Loans: (10)
Commercial, financial and industrial $ 18,300,686 $ 239,664 5.21 % $ 18,503,965 $ 193,787 4.25 %
Construction 2,686,102 32,259 4.78 2,733,630 19,261 2.86
Mortgage - Residential 15,701,726 226,053 5.76 15,923,191 234,438 5.89
Mortgage - Commercial 8,086,680 111,154 5.50 8,253,324 102,389 4.96
Consumer 3,588,873 53,231 5.90 3,722,252 46,539 5.07
Lease financing 648,752 5,012 3.09 652,684 7,653 4.69
Total loans 49,012,819 667,373 5.43 49,789,046 604,067 4.88
Securities - taxable 7,927,236 111,370 5.62 8,319,754 102,256 4.92
Securities - tax-exempt 52,118 1,052 8.07 50,417 1,025 8.13
Interest bearing deposits in banks (11) 6,764 71 4.20 4,220 900 0.48
Federal funds sold and securities purchased under resale agreements 122,640 899 2.92 196,567 141 0.29
Trading account assets 1,015,633 527 0.21 1,266,203 158 0.05
Total earning assets 58,137,210 781,292 5.36 59,626,207 708,547 4.78
Allowance for loan losses (551,627 ) (708,736 )
Cash and due from banks (11) 2,775,154 2,142,198
Premises and equipment, net 668,628 674,021
Other assets 5,492,153 5,338,809
Total assets $ 66,521,518 $ 67,072,499
Liabilities
Deposits:
Transaction accounts $ 18,277,265 71,731 1.56 $ 22,497,062 61,097 1.10
Savings and consumer time 4,185,219 15,591 1.48 4,367,945 15,939 1.48
Large time 8,718,514 50,820 2.32 7,232,767 28,002 1.57
Total interest bearing deposits 31,180,998 138,142 1.76 34,097,774 105,038 1.25
Federal funds purchased and securities sold under repurchase 1,183,014 3,437 1.16 251,946 53 0.09
agreements
Net funding allocated from (to) discontinued operations (12) 9,149 36 1.57 - - -
Commercial paper 1,151,296 5,640 1.95 721,416 1,592 0.89
Other borrowed funds (13) 7,496,938 37,135 1.97 5,083,086 11,477 0.92
Medium and long-term debt 3,871,749 34,291 3.52 4,743,352 27,529 2.35
Trust notes 14,035 238 6.79 13,922 238 6.84
Total borrowed funds 13,726,181 80,777 2.34 10,813,722 40,889 1.53
Total interest bearing liabilities 44,907,179 218,919 1.94 44,911,496 145,927 1.32
Noninterest bearing deposits 12,879,609 12,535,399
Other liabilities 1,985,793 2,289,392
Total liabilities 59,772,581 59,736,287
Stockholder's Equity
Common equity 6,748,937 7,336,212
Total stockholder's equity 6,748,937 7,336,212
Total liabilities and stockholder's equity $ 66,521,518 $ 67,072,499
Reported Net Interest Income/Margin
Net interest income/margin (taxable-equivalent basis) 562,373 3.86 % 562,620 3.79 %
Less: taxable-equivalent adjustment 2,407 2,617
Net interest income $ 559,966 $ 560,003
Average Assets and Liabilities of Discontinued Operations for Period
Ended:
December 31, March 31,
2008 2009
Assets $ 755 $ -
Liabilities $ 9,904 $ -
Net Liabilities $ (9,149 ) $ -
Refer to Exhibit 9 for footnote explanations.
UnionBanCal Corporation and Subsidiaries
Noninterest income (Unaudited)
Exhibit 7
Percentage Change to
For the Three Months Ended March 31, 2009 from
March 31, December 31, March 31, March 31, December 31,
(Dollars in thousands) 2008 2008(1) 2009(1) 2008 2008
Service charges on deposit accounts $ 74,736 $ 73,444 $ 71,322 (4.57 ) % (2.89 ) %
Trust and investment management fees 43,388 37,427 33,907 (21.85 ) (9.41 )
Trading account activities 11,012 14,434 22,692 nm 57.21
Merchant banking fees 11,793 13,879 13,832 17.29 (0.34 )
Brokerage commissions and fees 9,859 8,877 8,307 (15.74 ) (6.42 )
Card processing fees, net 7,764 7,493 7,536 (2.94 ) 0.57
Securities losses, net (2 ) (4 ) - (100.00 ) (100.00 )
Gains (losses) on private capital investments, net 1,070 3,750 (2,121 ) nm nm
Gain on the VISA IPO redemption 14,211 - - (100.00 ) 0.00
Other 21,565 19,613 19,241 (10.78 ) (1.90 )
Total noninterest income $ 195,396 $ 178,913 $ 174,716 (10.58 ) % (2.35 ) %
Noninterest expense (Unaudited)
Percentage Change to
For full details for UB click here.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.