UnionBanCal Reports First Quarter EPS of $1.21

    Business Editors

    SAN FRANCISCO--(BUSINESS WIRE)--April 20, 2005--UnionBanCal Corporation (NYSE:UB) today reported first quarter 2005 net income of $182.0 million, or $1.21 per diluted common share. First quarter 2005 results included a positive tax adjustment of $0.07 per diluted common share. Excluding the tax adjustment, first quarter 2005 earnings per diluted common share were $1.14, 8.6 percent higher than the $1.05 per diluted common share earned in first quarter 2004.
    "The positive business momentum we generated in 2004 continued into the first quarter of 2005," stated Norimichi Kanari, President and Chief Executive Officer. "The Company produced good growth in loans and deposits, with average loans up 20 percent and average noninterest bearing deposits up 12 percent over first quarter last year. The ongoing strength of our deposit-generating businesses is best reflected in our ratio of average noninterest bearing deposits to total deposits of 47.1 percent and our average annualized all-in cost of funds of just 0.77 percent, for first quarter 2005. Credit quality metrics were also very strong, with nonperforming assets declining 59 percent from a year earlier, a negative provision for credit losses in the quarter and a second consecutive quarter of net loan recoveries."
    Chief Operating Officer Philip Flynn added, "I am encouraged by continued growth in our commercial, real estate and residential mortgage portfolios. Our customers are indicating greater confidence in the economic expansion throughout our operating footprint and continue to increase their borrowings. The Company is well-positioned to take advantage of the opportunities this period of economic expansion provides."

    First Quarter Total Revenue

    For first quarter 2005, total revenue (taxable-equivalent net interest income plus noninterest income) was $665 million, an increase of $52 million, or 8.5 percent, compared with first quarter 2004. Net interest income increased 10.1 percent, and noninterest income increased 5.5 percent. Compared with fourth quarter 2004, total revenue was flat, with net interest income increasing 1.8 percent, and noninterest income decreasing 3.6 percent.

    First Quarter Net Interest Income (Taxable-equivalent)

    Net interest income was $442 million in first quarter 2005, up $41 million, or 10.1 percent, from the same quarter a year ago. Strong growth in both earning assets and deposits was partially offset by the effects of a flatter yield curve and lower hedge income, reflecting planned runoff in the hedge portfolio. Average earning assets increased $4.6 billion, or 11.8 percent, primarily due to a $5.2 billion, or 19.7 percent, increase in average loans, partially offset by a $0.3 billion, or 2.4 percent, decrease in average securities. Average residential mortgages increased $2.4 billion, or 31.8 percent; average commercial loans increased $1.2 billion, or 14.0 percent; and average commercial mortgages increased $1.1 billion, or 24.1 percent, primarily due to the Jackson Federal acquisition, which closed October 28, 2004.
    Compared to first quarter 2004, average noninterest bearing deposits increased $1.9 billion, or 11.6 percent, including a $180 million increase in title and escrow deposits. Average noninterest bearing deposits represented 47.1 percent of total deposits, up from 46.6 percent in the same quarter a year ago. The annualized average all-in cost of funds was 0.77 percent, reflecting the Company's strong average deposit-to-loan ratio of 126.7 percent and the high proportion of noninterest bearing deposits to total deposits.
    The average yield on earning assets of $43.5 billion was 4.85 percent, up 25 basis points over first quarter last year, as the average loan yield increased and the average yield on taxable securities was essentially unchanged. The average rate on interest bearing liabilities of $24.1 billion was 1.36 percent, up 53 basis points, reflecting higher short-term interest rates compared with first quarter 2004. The net interest margin in first quarter 2005 was 4.09 percent, compared with 4.14 percent in first quarter 2004.
    On a sequential quarter basis, net interest income increased $7.9 million, or 1.8 percent, despite two fewer days in first quarter 2005, as compared with fourth quarter 2004. Average earning assets increased $0.5 billion, or 1.2 percent, primarily due to an increase in average loans of $1.6 billion, or 5.2 percent, partially offset by a decrease in average securities of $0.7 billion, or 5.9 percent, and a decrease in average money market assets of $0.3 billion, or 29.1 percent. Average residential mortgages increased $656 million, or 7.2 percent. Average commercial loans increased $457 million, or 4.7 percent, including a $302 million increase in interest rate buy down loans. Average commercial mortgages increased $313 million, or 6.1 percent. Average noninterest bearing deposits decreased $293 million, or 1.5 percent, primarily due to a $317 million decrease in title and escrow deposits. The average yield on earning assets increased 23 basis points and the average rate on interest bearing liabilities increased 26 basis points, reflecting rising short-term interest rates. The net interest margin improved 6 basis points to 4.09 percent.

    First Quarter Noninterest Income

    In first quarter 2005, noninterest income was $223 million, up $11.6 million, or 5.5 percent, from the same quarter a year ago. Service charges on deposit accounts decreased slightly, primarily due to lower account analysis fees, stemming from an increase in the earnings credit rate on deposit balances, partially offset by higher overdraft and ATM transaction fees. Trust and investment management fees increased $6.1 million, or 17.1 percent, primarily due to the August 1, 2004, acquisition of TruSource (formerly CNA Trust), and an increase in trust assets. Card processing fees, net, decreased $3.2 million, primarily due to the May 31, 2004, sale of the Company's merchant card portfolio.
    Compared with fourth quarter 2004, first quarter 2005 noninterest income decreased $8.4 million, or 3.6 percent. Included in noninterest income for first quarter 2005 was $7.9 million in net gains on private equity investments. Included in noninterest income for fourth quarter 2004 was a $13.7 million net loss on the sale of securities, an $18.5 million net gain on private equity investments, and a $3.7 million gain on the sale of real estate. Excluding all of the foregoing items, noninterest income in sequential quarters decreased $7.8 million, or 3.5 percent. Service charges on deposit accounts decreased $3.0 million, or 3.6 percent, primarily due to lower overdraft and lower account analysis fees, stemming from an increase in the earnings credit rate on deposit balances. Merchant banking fees decreased $6.5 million, or 51.0 percent, primarily due to a lower volume of syndications completed.

    First Quarter Noninterest Expense

    Noninterest expense for first quarter 2005 was $407 million, an increase of $34.4 million, or 9.2 percent, over first quarter 2004. Salaries and employee benefits expense increased $20.1 million, or 9.1 percent, primarily due to higher employee count associated with acquisitions and de novo branch openings, annual merit increases and higher pension expense. Professional services expense increased $2.4 million, or 21.3 percent, primarily due to higher compliance-related expense. Intangible asset amortization expense was $5.0 million, an increase of $0.8 million compared with prior year, due to recent acquisitions. Provision for off-balance sheet commitments was $3.0 million, as the Company began recording separate provisions for on-balance sheet and off-balance sheet credit obligations in the first quarter. The provision for off-balance sheet commitments is required to be classified in noninterest expense. Other noninterest expense increased $4.8 million, or 7.8 percent, primarily due to higher vendor billings related to title and escrow balances, stemming from the higher earnings credit rate in first quarter 2005.
    Compared with fourth quarter 2004, noninterest expense increased $5.2 million, or 1.3 percent, primarily due to higher employee benefits expense, which increased primarily due to annual seasonal factors that result in higher payroll taxes and 401(k) matching contributions in the first quarter.

    Income Tax Expense

    The effective tax rate for first quarter 2005 was 31.1 percent, compared with an effective tax rate of 35.3 percent for first quarter 2004 and an effective tax rate of 33.6 percent for fourth quarter 2004. First quarter 2005 income tax expense included a credit adjustment of $10.0 million, or 7 cents per common share, to reflect a reduction in reserves for estimated amounts owed to the Internal Revenue Service with respect to the tax treatment of certain leasing transactions. Fourth quarter 2004 income tax expense included a credit adjustment of $6.0 million, or 4 cents per common share, to reflect a reduction in the estimate of California tax expense for full year 2004. Excluding these credit adjustments, the effective tax rate for first quarter 2005 was 34.9 percent, and the effective tax rate for fourth quarter 2004 was 35.8 percent.

    Credit Quality

    Nonperforming assets at March 31, 2005, were $107 million, or 0.22 percent of total assets. This compares with $164 million, or 0.34 percent of total assets at December 31, 2004, and $263 million, or 0.57 percent of total assets, at March 31, 2004. Nonperforming assets declined 59.3 percent between March 31, 2004, and March 31, 2005.
    In first quarter 2005, the total provision for credit losses was negative $5 million, compared with negative $10 million in fourth quarter 2004, and negative $5 million in first quarter 2004. The total provision for credit losses in first quarter 2005 consisted of a provision for loan losses of negative $8 million and a provision for off-balance sheet commitments of $3 million, which is included in noninterest expense. For the second consecutive quarter, the Company realized net loan recoveries. In first quarter 2005, net loan recoveries were $5 million, compared with net loan recoveries of $4 million in fourth quarter 2004, and net charge-offs of $13 million in first quarter 2004.
    At March 31, 2005, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 1.56 percent and 480.5 percent, respectively. These ratios were 1.59 percent and 312.5 percent, respectively, at December 31, 2004, and 2.00 percent and 203.0 percent, respectively, at March 31, 2004.

    Balance Sheet and Capital Ratios

    At March 31, 2005, the Company had total assets of $49.4 billion. Total loans were $31.4 billion and total deposits were $41.7 billion, resulting in a period-end deposit-to-loan ratio of 133.0 percent. At period-end, total stockholders' equity was $4.1 billion, the tangible equity ratio was 7.36 percent, and the ratio of tangible common equity to risk-weighted assets was 8.76 percent. Book value per share at March 31, 2005, was $28.41, up 4.8 percent from a year earlier. The Company's Tier I and total risk-based capital ratios at period-end were 9.07 percent and 11.43 percent, respectively.

    Stock Repurchases

    During first quarter 2005, the Company repurchased approximately 4.1 million shares of common stock at a total cost of $240 million, or $58.25 per repurchased share. Included in these totals is the February 23, 2005, repurchase of approximately 3.5 million shares of common stock from the Company's majority owner, The Bank of Tokyo-Mitsubishi, Ltd. (BTM), in a negotiated transaction at a per share price of $57.54.
    Common shares outstanding at March 31, 2005, were 144.6 million, a decrease of 2.9 million shares, or 2.0 percent, from one year earlier, primarily reflecting shares repurchased, net of shares issued in acquisitions. Common shares outstanding decreased 3.8 million, or 2.6 percent, from December 31, 2004, primarily reflecting shares repurchased in the first quarter.

    Second Quarter and Full Year 2005 Earnings Per Share Guidance

    The Company currently estimates that fully diluted earnings per share will be in the range of $1.14 to $1.19 for second quarter 2005, and $4.75 to $4.90 for full year 2005. These estimates assume a total provision for credit losses of approximately negative $5 million in second quarter 2005, and a total provision for credit losses of approximately zero in full year 2005.

    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," "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 guidance.
    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, including the continuing financial difficulties of the California state government; 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, Ltd., which is a wholly-owned subsidiary of Mitsubishi Tokyo Financial Group, Inc.; competition in the banking and financial services industries; adverse effects of current and future banking laws, rules and regulations and their enforcement, or governmental fiscal or monetary policies; 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; 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 415-765-2969 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 results at 8:30 AM Pacific Time (11:30 AM Eastern Time) on April 21, 2005. Interested parties calling from locations within the United States should call 888-428-4474 (651-291-5254 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.uboc.com. Simply follow the links to the Investor Relations section of the website. 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 21, through 11:59 PM Pacific Time, April 28 (2:59 AM Eastern Time, April 29). The reservation number for this playback is 774599.
    Based in San Francisco, UnionBanCal Corporation is a bank holding company with assets of $49.4 billion at March 31, 2005. Its primary subsidiary, Union Bank of California, N.A., had 316 banking offices in California, Oregon and Washington, and 21 international facilities, at March 31, 2005.

Exhibit 1

UnionBanCal Corporation and Subsidiaries Financial Highlights (Unaudited)

Percent Change to March 31, 2005 As of and for the Three Months Ended from ------------------------------------ ----------------- (Dollars in thousands, March December March March December except per 31, 31, 31, 31, 31, share data) 2004 2004 2005 2004 2004 ---------------- --------- ------------ ------------ ------- ------- Results of operations:

Net interest income (1) $401,223 $433,982 $441,854 10.13% 1.81% Noninterest income 211,205 231,136 222,761 5.47% (3.62%) --------- ------------ ------------ Total revenue 612,428 665,118 664,615 8.52% (0.08%) Noninterest expense (2) 373,106 402,283 407,467 9.21% 1.29% (Reversal of) provision for loan losses (5,000) (10,000) (8,000) 60.00% (20.00%) --------- ------------ ------------ Income before income taxes (1) 244,322 272,835 265,148 8.52% (2.82%) Taxable- equivalent adjustment 802 1,128 1,055 31.55% (6.47%) Income tax expense 86,033 91,195 82,116 (4.55%) (9.96%) --------- ------------ ------------ Net income $157,487 $180,512 $181,977 15.55% 0.81% ========= ============ ============

Per common share:

Net income-basic $1.07 $1.22 $1.24 15.89% 1.64% Net income- diluted 1.05 1.19 1.21 15.24% 1.68% Dividends (3) 0.31 0.36 0.36 16.13% 0.00% Book value (end of period) 27.12 28.93 28.41 4.76% (1.80%) Common shares outstanding (end of period) 147,474,843 148,359,918 144,575,615 (1.97%) (2.55%) Weighted average common shares outstanding - basic 147,400,298 148,421,593 146,997,649 (0.27%) (0.96%) Weighted average common shares outstanding - diluted 149,952,021 151,513,258 149,915,503 (0.02%) (1.05%)

Balance sheet (end of period):

Total assets $46,102,177 $48,098,021 $49,408,561 7.17% 2.72% Total loans 26,036,305 30,716,956 31,365,540 20.47% 2.11% Nonaccrual loans 256,741 156,636 101,904 (60.31%) (34.94%) Nonperforming assets 262,894 163,918 107,136 (59.25%) (34.64%) Total deposits 39,005,555 40,175,836 41,711,266 6.94% 3.82% Junior subordinated debt 16,243 15,790 15,677 (3.48%) (0.72%) Medium and long- term debt 836,023 816,113 803,233 (3.92%) (1.58%) Stockholders' equity 3,999,061 4,292,244 4,107,223 2.70% (4.31%)

Balance sheet (period average):

Total assets $43,051,182 $47,498,825 $48,277,736 12.14% 1.64% Total loans 26,141,856 29,751,850 31,302,779 19.74% 5.21% Earning assets 38,876,228 42,960,338 43,461,399 11.79% 1.17% Total deposits 35,939,525 39,617,397 39,668,832 10.38% 0.13% Stockholders' equity 3,949,922 4,246,844 4,208,650 6.55% (0.90%)

Financial ratios:

Return on average assets (4) 1.47% 1.51% 1.53% Return on average stockholders' equity (4) 16.04% 16.91% 17.54% Efficiency ratio (5) 60.84% 60.38% 60.80% Net interest margin (1) 4.14% 4.03% 4.09% Dividend payout ratio 28.97% 29.51% 29.03% Tangible equity ratio 7.92% 7.94% 7.36% Tier 1 risk- based capital ratio (6) 10.29% 9.71% 9.07% Total risk-based capital ratio (6) 13.06% 12.17% 11.43% Leverage ratio (6) 8.24% 8.09% 7.79% Allowance for credit losses to total loans (7) 2.00% 1.59% 1.56% Allowance for credit losses to nonaccrual loans (7) 202.97% 312.53% 480.46% Net loans charged off (recovered) to average total loans (4) 0.19% (0.05%) (0.07%) Nonperforming assets to total loans, foreclosed assets, and distressed loans held for sale 1.01% 0.53% 0.34% Nonperforming assets to total assets 0.57% 0.34% 0.22%

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(1) Taxable-equivalent basis.

(2) Included in noninterest expense at March 31, 2005 was $3 million of provision for losses on off-balance sheet commitments.

(3) Dividends per share reflect dividends declared on UnionBanCal Corporation's common stock outstanding as of the declaration date.

(4) Annualized.

(5) The efficiency ratio is noninterest expense, excluding foreclosed asset expense (income) and the provision for losses on off-balance sheet commitments, as a percentage of net interest income (taxable-equivalent basis) and noninterest income.

(6) Estimated as of March 31, 2005.

(7) The allowance for credit losses ratios include the allowance for loan losses and losses on off-balance sheet commitments.

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Exhibit 2

UnionBanCal Corporation and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (Taxable-Equivalent Basis)

For the Three Months Ended ----------------------------- March December March (Amounts in thousands, except 31, 31, 31, per share data) 2004 2004 2005 ---------------------------------------- -------- -------- -------- Interest Income Loans $335,611 $385,397 $416,259 Securities 106,328 106,033 101,264 Interest bearing deposits in banks 908 2,660 2,102 Federal funds sold and securities purchased under resale agreements 1,959 2,686 2,373 Trading account assets 595 1,050 908 -------- -------- -------- Total interest income 445,401 497,826 522,906 -------- -------- --------

Interest Expense Domestic deposits 33,610 44,872 54,562 Foreign deposits 2,132 5,510 6,176 Federal funds purchased and securities sold under repurchase agreements 681 3,376 7,455 Commercial paper 1,135 3,016 4,560 Medium and long-term debt 3,139 5,572 6,532 Trust notes 2,181 227 238 Other borrowed funds 1,300 1,271 1,529 -------- -------- -------- Total interest expense 44,178 63,844 81,052 -------- -------- --------

Net Interest Income 401,223 433,982 441,854 (Reversal of) provision for loan losses (1) (5,000) (10,000) (8,000) -------- -------- -------- Net interest income after (reversal of) provision for loan losses 406,223 443,982 449,854 -------- -------- --------

Noninterest Income Service charges on deposit accounts 81,096 83,487 80,455 Trust and investment management fees 35,822 41,384 41,963 Insurance commissions 21,735 20,024 22,017 International commissions and fees 17,545 18,844 17,674 Brokerage commissions and fees 8,297 8,216 8,972 Foreign exchange gains, net 8,344 8,330 8,940 Merchant banking fees 7,467 12,783 6,266 Card processing fees, net 8,792 5,246 5,607 Securities gains (losses), net 1,622 (13,697) 344 Other 20,485 46,519 30,523 -------- -------- -------- Total noninterest income 211,205 231,136 222,761 -------- -------- --------

Noninterest Expense Salaries and employee benefits 219,423 223,770 239,480 Net occupancy 31,582 35,147 33,525 Equipment 17,271 18,825 17,733 Software 12,995 15,357 14,628 Professional services 11,303 16,065 13,710 Communications 13,410 12,604 12,775 Foreclosed asset expense 519 685 406 Provision for losses on off-balance sheet commitments (1) - - 3,000 Other 66,603 79,830 72,210 -------- -------- -------- Total noninterest expense 373,106 402,283 407,467 -------- -------- --------

Income before income taxes 244,322 272,835 265,148 Taxable-equivalent adjustment 802 1,128 1,055 Income tax expense 86,033 91,195 82,116

--------- -------- --------- Net Income $157,487 $180,512 $181,977 ======== ======== ========

Net income per common share - basic $ 1.07 $ 1.22 $ 1.24 ======== ======== ======== Net income per common share - diluted $ 1.05 $ 1.19 $ 1.21 ======== ======== ======== Weighted average common shares outstanding - basic 147,400 148,422 146,998 ======== ======== ======== Weighted average common shares outstanding - diluted 149,952 151,513 149,916 ======== ======== ========

---------------------------------------- (1) For the quarter ending March 31, 2005, the net change in the allowance for losses on off-balance sheet commitments is recognized separately from the change in the allowance for loan losses. Prior periods have not been restated.

Exhibit 3

UnionBanCal Corporation and Subsidiaries Consolidated Balance Sheets

(Unaudited) (Unaudited) March 31, December 31, March 31, (Dollars in thousands) 2004 2004 2005 ------------------------------- ----------- ----------- ----------- Assets Cash and due from banks $ 2,154,170 $ 2,111,185 $ 1,962,503 Interest bearing deposits in banks 243,585 491,905 297,697 Federal funds sold and securities purchased under resale agreements 3,517,500 944,950 1,695,835 ----------- ----------- ----------- Total cash and cash equivalents 5,915,255 3,548,040 3,956,035 Trading account assets 285,305 236,331 236,058 Securities available for sale: Securities pledged as collateral 97,040 144,240 251,657 Held in portfolio 11,496,366 11,000,754 10,980,823 Loans (net of allowance for loan losses: March 31, 2004, $521,111; December 31, 2004, $407,156; March 31, 2005, $404,231) (1) 25,515,194 30,309,800 30,961,309 Due from customers on acceptances 50,554 55,914 55,872 Premises and equipment, net 523,197 530,431 523,920 Intangible assets 61,181 61,737 56,751 Goodwill 314,994 450,961 450,125 Other assets 1,843,091 1,759,813 1,936,011 ----------- ----------- ----------- Total assets $46,102,177 $48,098,021 $49,408,561 =========== =========== ===========

Liabilities Domestic deposits: Noninterest bearing $18,736,656 $19,205,596 $20,554,303 Interest bearing 18,238,967 19,480,868 19,449,197 Foreign deposits: Noninterest bearing 661,004 435,999 397,765 Interest bearing 1,368,928 1,053,373 1,310,001 ----------- ----------- ----------- Total deposits 39,005,555 40,175,836 41,711,266 Federal funds purchased and securities sold under repurchase agreements 325,238 587,249 400,570 Commercial paper 478,039 824,887 1,042,795 Other borrowed funds 204,681 172,549 126,662 Acceptances outstanding 50,554 55,914 55,872 Other liabilities (1) 1,186,783 1,157,439 1,145,263 Medium and long-term debt 836,023 816,113 803,233 Junior subordinated debt payable to subsidiary grantor trust 16,243 15,790 15,677 ----------- ----------- ----------- Total liabilities 42,103,116 43,805,777 45,301,338 ----------- ----------- -----------

Commitments and contingencies

Stockholders' Equity Preferred stock: Authorized 5,000,000 shares, no shares issued or outstanding as of March 31, 2004, December 31, 2004, and March 31, 2005 - - - Common stock, par value $1 per share at March 31, 2004, December 31, 2004 and March 31, 2005: Authorized 300,000,000 shares, issued 148,546,543 shares as of March 31, 2004, 152,191,818 shares as of December 31, 2004, and 152,530,458 shares as of March 31, 2005 148,547 152,192 152,530 Additional paid-in capital 688,231 881,928 896,855 Treasury stock - 1,071,700 shares as of March 31, 2004, 3,831,900 shares as of December 31, 2004 and 7,954,843 shares as of March 31, 2005 (56,932) (223,361) (463,527) Retained earnings 3,111,464 3,526,312 3,656,187 Accumulated other comprehensive income (loss) 107,751 (44,827) (134,822) ----------- ----------- ----------- Total stockholders' equity 3,999,061 4,292,244 4,107,223 ----------- ----------- ----------- Total liabilities and stockholders' equity $46,102,177 $48,098,021 $49,408,561 =========== =========== ===========

------------------------------- (1) On December 31, 2004, UnionBanCal Corporation transferred the allowance related to off-balance sheet commitments of $83 million from allowance for loan losses to other liabilities. At March 31, 2005, the allowance related to off-balance sheet commitments was $86 million. Periods prior to December 31, 2004 have not been restated.

Exhibit 4

UnionBanCal Corporation and Subsidiaries Loans (Unaudited)

Percent Change to March 31, 2005 Three Months Ended from -------------------------- ----------------- March December March March December 31, 31, 31, 31, 31, (Dollars in millions) 2004 2004 2005 2004 2004 ------------------------- -------- -------- -------- ------- --------

Loans (period average) Commercial, financial and industrial $8,894 $9,683 $10,140 14.01% 4.72% Construction 1,102 1,131 1,114 1.09% (1.50%) Mortgage - Commercial 4,367 5,107 5,420 24.11% 6.13% Mortgage - Residential 7,461 9,174 9,830 31.75% 7.15% Consumer 2,057 2,313 2,372 15.31% 2.55% Lease financing 649 607 603 (7.09%) (0.66%) Loans originated in foreign branches 1,609 1,735 1,781 10.69% 2.65% -------- -------- --------

Total loans held to maturity $26,139 $29,750 $31,260 19.59% 5.08% Total loans held for sale 3 2 43 nm nm -------- -------- --------

Total loans $26,142 $29,752 $31,303 19.74% 5.21% ======== ======== ========

Nonperforming assets (period end) Nonaccrual loans: Commercial, financial and industrial $178 $73 $36 (79.78%) (50.68%) Construction - 3 1 nm (66.67%) Mortgage - Commercial 27 26 10 (62.96%) (61.54%) Lease 51 55 55 7.84% 0.00% Foreign 1 - - (100.00%) 0.00% -------- -------- --------

Total nonaccrual loans 257 157 102 (60.31%) (35.03%) Foreclosed assets 6 7 5 (16.67%) (28.57%) -------- -------- --------

Total nonperforming assets $263 $164 $107 (59.32%) (34.76%) ======== ======== ========

Loans 90 days or more past due and still accruing $7 $4 $4 (42.86%) 0.00% ======== ======== ========

Analysis of Allowance for Credit Losses Beginning balance $533 $483 $407

(Reversal of) provision for loan losses (5) (10) (8) Foreign translation adjustment and other net additions (deductions)(1)(2) 6 (70) -

Loans charged off: Commercial, financial and industrial (20) (17) (13) Construction - (1) - Real estate - - (1) Consumer (2) (2) (1) -------- -------- -------- Total loans charged off (22) (20) (15) -------- -------- --------

Loans recovered: Commercial, financial and industrial 9 22 20 Consumer - 1 - Lease financing - 1 - -------- -------- -------- Total loans recovered 9 24 20 -------- -------- -------- Net loans (charged-off) recovered (13) 4 5 -------- -------- --------

Ending balance of allowance for loan losses $521 $407 $404 Allowance for off- balance sheet commitment losses - 83 86 -------- -------- --------

Allowance for credit losses $521 $490 $490 ======== ======== ========

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(1) Includes a transfer of $6 million related to the Business Bancorp acquisition in the first quarter of 2004 and a transfer of $12.6 million related to the Jackson Federal Bank acquisition in the fourth quarter of 2004. (2) On December 31, 2004, UnionBanCal Corporation transferred the allowance related to off-balance sheet commitments of $83 million from allowance for loan losses to other liabilities. At March 31, 2005, the allowance related to off-balance sheet commitments is $86 million. Periods prior to December 31, 2004 have not been restated.

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Exhibit 5

UnionBanCal Corporation and Subsidiaries Net Interest Income (Unaudited)

For the Three Months Ended --------------------------------- March 31, 2004 --------------------------------- Interest Average Average Income/ Yield/ (Dollars in thousands) Balance Expense Rate (1) (1)(2) --------------------------------- ------------ --------- -------- Assets Loans: (3) Domestic $24,532,402 $327,933 5.38 % Foreign (4) 1,609,454 7,678 1.92 Securities - taxable 11,396,654 104,993 3.69 Securities - tax-exempt 65,813 1,335 8.11 Interest bearing deposits in banks 207,854 908 1.76 Federal funds sold and securities purchased under resale agreements 786,994 1,959 1.00 Trading account assets 277,057 595 0.86 ----------- -------- Total earning assets 38,876,228 445,401 4.60 -------- Allowance for loan losses(5) (534,171) Cash and due from banks 2,276,055 Premises and equipment, net 519,962 Other assets 1,913,108 ----------- Total assets $43,051,182 =========== Liabilities Domestic deposits: Interest bearing $11,390,393 16,556 0.58 Savings and consumer time 4,136,695 8,719 0.85 Large time 2,432,602 8,335 1.38 Foreign deposits (4) 1,227,223 2,132 0.70 ----------- -------- Total interest bearing deposits 19,186,913 35,742 0.75 ----------- -------- Federal funds purchased and securities sold under repurchase agreements 395,466 681 0.69 Commercial paper 542,853 1,135 0.84 Other borrowed funds 187,829 1,300 2.78 Medium and long-term debt 806,062 3,139 1.57 Trust notes 203,022 2,181 4.30 ----------- -------- Total borrowed funds 2,135,232 8,436 1.59 ----------- -------- Total interest bearing liabilities 21,322,145 44,178 0.83 -------- Noninterest bearing deposits 16,752,612 Other liabilities 1,026,503 ----------- Total liabilities 39,101,260 Stockholders' Equity Common equity 3,949,922 ----------- Total stockholders' equity 3,949,922 ----------- Total liabilities and stockholders' equity $43,051,182 =========== Net interest income/margin (taxable-equivalent basis) 401,223 4.14 % Less: taxable-equivalent adjustment 802 -------- Net interest income $400,421 ========

For the Three Months Ended --------------------------------- December 31, 2004 --------------------------------- Interest Average Average Income/ Yield/ (Dollars in thousands) Balance Expense Rate (1) (1)(2) --------------------------------- ------------ --------- -------- Assets Loans: (3) Domestic $28,017,048 $374,260 5.32 % Foreign (4) 1,734,802 11,137 2.55 Securities - taxable 11,820,242 104,657 3.54 Securities - tax-exempt 69,231 1,376 7.95 Interest bearing deposits in banks 516,505 2,660 2.05 Federal funds sold and securities purchased under resale agreements 522,166 2,686 2.05 Trading account assets 280,344 1,050 1.49 ----------- -------- Total earning assets 42,960,338 497,826 4.62 -------- Allowance for loan losses(5) (495,776) Cash and due from banks 2,346,479 Premises and equipment, net 509,093 Other assets 2,178,691 ----------- Total assets $47,498,825 =========== Liabilities Domestic deposits: Interest bearing $12,258,481 22,865 0.74 Savings and consumer time 4,875,661 12,094 0.99 Large time 2,078,133 9,913 1.90 Foreign deposits (4) 1,417,344 5,510 1.55 ----------- -------- Total interest bearing deposits 20,629,619 50,382 0.97 ----------- -------- Federal funds purchased and securities sold under repurchase agreements 775,182 3,376 1.73 Commercial paper 778,724 3,016 1.54 Other borrowed funds 127,220 1,271 3.97 Medium and long-term debt 810,665 5,572 2.73 Trust notes 15,845 227 5.73 ----------- -------- Total borrowed funds 2,507,636 13,462 2.14 ----------- -------- Total interest bearing liabilities 23,137,255 63,844 1.10 -------- Noninterest bearing deposits 18,987,778 Other liabilities 1,126,948 ----------- Total liabilities 43,251,981 Stockholders' Equity Common equity 4,246,844 ----------- Total stockholders' equity 4,246,844 ----------- Total liabilities and stockholders' equity $47,498,825 =========== Net interest income/margin (taxable-equivalent basis) 433,982 4.03 % Less: taxable-equivalent adjustment 1,128 -------- Net interest income $432,854 ========

For the Three Months Ended --------------------------------- March 31, 2005 --------------------------------- Interest Average Average Income/ Yield/ (Dollars in thousands) Balance Expense Rate (1) (1)(2) --------------------------------- ------------ --------- -------- Assets Loans: (3) Domestic $29,521,537 $402,626 5.51 % Foreign (4) 1,781,242 13,633 3.10 Securities - taxable 11,123,106 99,939 3.59 Securities - tax-exempt 67,144 1,325 7.89 Interest bearing deposits in banks 359,399 2,102 2.37 Federal funds sold and securities purchased under resale agreements 377,291 2,373 2.55 Trading account assets 231,680 908 1.59 ----------- -------- Total earning assets 43,461,399 522,906 4.85 -------- Allowance for loan losses(5) (411,428) Cash and due from banks 2,294,369 Premises and equipment, net 528,132 Other assets 2,405,264 ----------- Total assets $48,277,736 =========== Liabilities Domestic deposits: Interest bearing $12,255,178 25,468 0.84 Savings and consumer time 4,778,965 13,047 1.11 Large time 2,765,524 16,047 2.35 Foreign deposits (4) 1,174,857 6,176 2.13 ----------- -------- Total interest bearing deposits 20,974,524 60,738 1.17 ----------- -------- Federal funds purchased and securities sold under repurchase agreements 1,279,862 7,455 2.36 Commercial paper 865,460 4,560 2.14 Other borrowed funds 180,541 1,529 3.44 Medium and long-term debt 808,846 6,532 3.27 Trust notes 15,733 238 6.06 ----------- -------- Total borrowed funds 3,150,442 20,314 2.61 ----------- -------- Total interest bearing liabilities 24,124,966 81,052 1.36 -------- Noninterest bearing deposits 18,694,308 Other liabilities 1,249,812 ----------- Total liabilities 44,069,086 Stockholders' Equity Common equity 4,208,650 ----------- Total stockholders' equity 4,208,650 ----------- Total liabilities and stockholders' equity $48,277,736 =========== Net interest income/margin (taxable-equivalent basis) 441,854 4.09 % Less: taxable-equivalent adjustment 1,055 -------- Net interest income $440,799 ========

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

(2) Annualized

(3) Average balances on loans outstanding include all nonperforming loans. The amortized portion of net loan origination fees (costs) is included in interest income on loans, representing an adjustment to the yield.

(4) Foreign loans and deposits are those loans and deposits originated in foreign branches.

(5) The average allowance related to off-balance sheet commitments was included in other liabilities for the quarters ended December 31, 2004 and March 31, 2005. Periods prior to December 31, 2004 have not been restated.

Exhibit 6

UnionBanCal Corporation and Subsidiaries

Noninterest Income (Unaudited) Percentage Change to For the Three Months Ended March 31, 2005 From ------------------------------- ------------------- March December March March December (Dollars in 31, 31, 31, 31, 31, thousands) 2004 2004 2005 2004 2004 --------------- --------- --------- --------- ---------- ------- Service charges on deposit accounts $81,096 $83,487 $80,455 (0.79) % (3.63) % Trust and investment management fees 35,822 41,384 41,963 17.14 1.40 Insurance commissions 21,735 20,024 22,017 1.30 9.95 International commissions and fees 17,545 18,844 17,674 0.74 (6.21) Brokerage commissions and fees 8,297 8,216 8,972 8.14 9.20 Foreign exchange gains, net 8,344 8,330 8,940 7.14 7.32 Merchant banking fees 7,467 12,783 6,266 (16.08) (50.98) Card processing fees, net 8,792 5,246 5,607 (36.23) 6.88 Securities gains (losses), net 1,622 (13,697) 344 (78.79) nm Gain on private capital investments, net 3,314 18,480 7,935 nm (57.06) Other 17,171 28,039 22,588 31.55 (19.44) --------- --------- --------- Total noninterest income $211,205 $231,136 $222,761 5.47 % (3.62) % ========= ========= =========

Noninterest Expense (Unaudited)

Percentage Change to For the Three Months Ended March 31, 2005 From ------------------------------- ------------------- March December March March December (Dollars in 31, 31, 31, 31, 31, thousands) 2004 2004 2005 2004 2004 --------------- --------- --------- --------- ---------- ------- Salaries and other compensation $170,430 $182,194 $185,194 8.66 % 1.65 % Employee benefits 48,993 41,576 54,286 10.80 30.57 --------- --------- --------- Salaries and employee benefits 219,423 223,770 239,480 9.14 7.02 Net occupancy 31,582 35,147 33,525 6.15 (4.61) Equipment 17,271 18,825 17,733 2.68 (5.80) Software 12,995 15,357 14,628 12.57 (4.75) Professional services 11,303 16,065 13,710 21.30 (14.66) Communications 13,410 12,604 12,775 (4.74) 1.36 Data processing 7,625 8,581 9,527 24.94 11.02 Advertising and public relations 8,727 10,947 7,750 (11.20) (29.20) Intangible asset amortization 4,221 5,689 4,985 18.10 (12.37) Foreclosed asset expense 519 685 406 (21.77) (40.73) Provision for off-balance sheet credit losses (1) - - 3,000 nm nm Other 46,030 54,613 49,948 8.51 (8.54) --------- --------- --------- Total noninterest expense $373,106 $402,283 $407,467 9.21 % 1.29 % ========= ========= =========

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(1) For the quarter ending March 31, 2005, the net change in the allowance for losses on off-balance sheet commitments is recognized separately from the change in the allowance for loan losses. Prior periods have not been restated.

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CONTACT: UnionBanCal Corporation John A. Rice, Jr., 415-765-2998 (Investor Relations) Stephen L. Johnson, 415-765-3252 (Public Relations) Michelle R. Crandall, 415-765-2780 (Investor Relations)

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: BANKING EARNINGS CONFERENCE CALLS SOURCE: UnionBanCal Corporation

Copyright Business Wire 2005