UnionBanCal Corporation is in talks to acquire trust-banking assets of Morgan Stanley (NYSE:MS), said two people with knowledge of the matter. The assets are valued at approximately $4 billion, according to the people, who asked not to be identified while talks continue. Nikkei newspaper, which reported the negotiations, said the deal would need approval from the U.S.

OneWest Bank, FSB failed to find a buyer after holding informal talks with at least three investors, according to people familiar with the matter. OneWest's owners wants to get out of their investment through a sale or an initial public offering, said the people, who asked not to be named as the process was private. UnionBanCal Corporation and U.S. Bancorp (NYSE:USB) both held talks with OneWest, people familiar with the matter said in February 2013. New York Community Bancorp Inc. (NYSE:NYCB) also spoke with OneWest, one person said. "The company is focused on its business plan and becoming a public company in 2014," said Charles Sipkins, a spokesman of OneWest said. According to Bloomberg, spokesman for New York Community declined to comment, while representatives at UnionBanCal and U.S. Bancorp didn’t immediately return calls seeking comment.

UnionBanCal Corporation announced consolidated unaudited earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported total interest income of $750 million against $738 million a year ago. Net interest income was $648 million against $641 million a year ago, primarily due to loan growth. Total revenue (net interest income plus noninterest income) was $903 million against $855 million a year ago. Income before income taxes and including non controlling interests was $193 million against $242 million a year ago. Net income including non controlling interests was $143 million against $191 million a year ago. Net income attributable to company was $147 million against $195 million a year ago. Adjusted net income attributable to company was $170 million against $202 million a year ago. Return on average assets was 0.61% against 0.88% a year ago. Adjusted return on average assets was 0.72% against 0.93% a year ago. Return on average UNBC stockholder's equity was 4.67% against 6.75% a year ago. Adjusted return on average UNBC stockholder's equity was 6.62% against 8.73% a year ago. Return on average stockholder's equity excluding the impact of privatization transaction and merger costs related to acquisitions was 6.62% against 8.73% a year ago. Return on average assets excluding the impact of privatization transaction and merger costs related to acquisitions was 0.72% against 0.93% a year ago. The decrease in net interest income was primarily due to a decline in the net interest margin, which reflected the repricing of loans, primarily commercial and industrial loans and residential mortgage loans, and securities in the current low interest rate environment. The company announced that excluding PCI loans, net charge-offs were low at $12 million for first quarter ended March 31, 2013. This was up from net charge-offs of less than $1 million in fourth quarter 2012, and down from net charge-offs of $54 million, or an annualized 0.41% of average total loans, for first quarter 2012.