Union Bank of California Releases December 2005 Economic Report

"2005: Another Good Year for the Pacific Northwest" Offers a Retrospective on the Past Year's Regional Economy, Job Growth and Housing Boom

WHAT:

Keitaro Matsuda, senior economist for Union Bank of California, released today his December 2005 Economic Report on the Pacific Northwest, which includes an analysis on the region's economy, job growth, decreasing unemployment rates and a booming housing market. The report titled "2005: Another Good Year for the Pacific Northwest" is part of a monthly series produced by Matsuda on the California, Pacific Northwest and U.S. economies.

WHY:

The Union Bank of California December 2005 Economic Report discusses the following key regional and national issues:

-- The Pacific Northwest region's job growth in comparison to national employment gains

-- Oregon and Washington State's dipping unemployment rates

-- The impact of the housing boom on the region's economic growth

-- How will the Pacific Northwest economy fare in 2006?

WHO:

Keitaro Matsuda has managed the economic research department of Union Bank of California since 1997. As the bank's senior economist, Matsuda advises bank management, employees and clients on issues related to the bank's West Coast markets. He is also a member of the economic advisory committee of the American Bankers Association. Union Bank of California, the wholly owned subsidiary of UnionBanCal Corporation (NYSE:UB), provides a broad range of financial services to consumers, small businesses, middle market and large corporations.

AVAILABILITY:

The December 2005 Economic Report is now available upon request or on the Web at www.uboc.com in the "News and Announcements" section.

INTERVIEW:

Keitaro Matsuda is available for interviews to share his insights about local, state and national economies. Please contact Katie Pandes or Angela Fernandez to schedule an appointment.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.