We are a financial holding company and bank holding company whose principal
subsidiary is MUFG Union Bank, N.A. ("MUB" or "the Bank").
We service U.S. Wholesale Banking, Investment Banking & Markets, and certain
Transaction Banking customers through the MUFG brand and continue to serve Regional
Bank and Transaction Banking customers through the Union Bank brand. We provide
a wide range of financial services to consumers, small businesses, middle-market
companies and major corporations, both nationally and internationally. MUB operated
369 branches, comprised primarily of retail banking branches in the West Coast
states, along with commercial branches in Texas, Illinois, New York and Georgia,
as well as two international offices.
The Company’s leadership team is bicoastal with the Regional Bank, and
Transaction Banking leaders on the West Coast. U.S. Wholesale Banking and Investment
Banking & Markets leaders are based in New York City. The corporate headquarters
(principal executive office) for MUB and MUAH is in New York City. MUBs main
banking office is in San Francisco.
References to the privatization transaction in this report refer to the transaction
on November 4, 2008, when we became a privately held company. All of our issued
and outstanding shares of common stock are owned by BTMU.
Our operations are organized into four reportable segments: Regional Bank,
U.S. Wholesale Banking, Transaction Banking, and Investment Banking & Markets.
We provide financing to businesses in a number of industries that may be particularly
vulnerable to industry-specific economic factors which have impacted the performance
of our commercial real estate and commercial and industrial portfolios. The
commercial real estate industry in the U.S., and in California in particular,
was adversely impacted by the recessionary environment and lack of liquidity
in the financial markets as the financial crisis ensued in 2008. The home building
and mortgage industries in California also were especially adversely impacted
by the deterioration in residential real estate markets. Our commercial and
industrial portfolio, and the communications and media industry, the retail
industry, and the energy industry in particular, were also adversely impacted
by recessionary market conditions. Volatility in fuel prices and energy costs
could adversely affect businesses in several of these industries, while a prolonged
slump in oil, natural gas and coal prices could have adverse consequences for
some of our borrowers in the energy sector.
A significant portion of our total loan portfolio is related to residential
real estate, especially in California. Increases in residential mortgage loan
interest rates could have an adverse effect on our operations by depressing
new mortgage loan originations, and could negatively impact our title and escrow
deposit levels. California markets have experienced a strong recovery in home
prices since the housing market crisis; however, home price growth has begun
to moderate and some fundamentals of the housing market have remained soft through
the recovery. A renewed downturn could have an adverse effect on our operations
and the quality of our real estate loan portfolio. These factors could adversely
impact the quality of our residential construction and residential mortgage
portfolios in various ways, including by decreasing the value of the collateral
for our mortgage loans. Furthermore, California in recent years has been facing
a severe drought which, if it continues, may adversely affect commercial loan
customers, particularly in the agricultural sector. These factors could also
negatively affect the economy in general and thereby our overall loan portfolio.
The mortgage industry has been in the midst of unprecedented change triggered
by the significant economic downturn which commenced in 2008. Lawmakers and
regulators continue to take steps to protect residential mortgage borrowers
and establish a common framework for response to the concerns of residential
mortgage customers, especially related to default and foreclosure. Included
in these measures has been litigation by 49 state attorneys general against
the largest mortgage servicers in the U.S., enhanced federal regulatory guidance
regarding foreclosure practices and other matters and legislation at the state
level, including in California. These increased standards and restrictions have
impacted the overall mortgage loan servicing industry in general, and may increase
the cost of residential mortgage lending, require mortgage loan principal write-downs,
and could put downward pressure on property values and have other adverse impacts
on our residential lending business.
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