I also want to take this opportunity to express my appreciation to Nicholas B. Binkley, Christine Garvey, Barbara L. Rambo, and Dean A. Yoost who joined the Board of Directors during 2007. Their experience and good counsel will serve our company well into the future.

My profound thanks and hearty congratulations go to Vice Chairman and Chief Risk Officer Masashi Oka who completed his rotational assignment in the United States in early April and was promoted to his new position of Executive Officer and General Manager, Corporate and Investment Banking Business Development Division with The Bank of Tokyo-Mitsubishi UFJ in Tokyo. Masashi’s contributions to the company have been significant and they will be a large part of our future success. We wish him much good fortune in his new job. John Erickson, formerly the Deputy Chief Risk Officer, succeeded Masashi as both Vice Chairman and Chief Risk Officer. We have come to value John’s expertise and professionalism and I am delighted that he continues to serve the company in these important positions.

I speak often about the Power of Teamwork, and this is far more than just a signature phrase for me. As I walk around and meet our customers and our employees, I am constantly reminded of how much we all contribute to each other, in meaningful and powerful ways. Our plans for future success are based on the strengths we share, and as we move forward together I am confident that Union Bank of California will become an even more valued member of the community and an institution of force and influence in the banking industry.