Exhibit 99.1
***FOR IMMEDIATE RELEASE***
For: ZIONS BANCORPORATION & #160; Contact: Clark Hinckley
One South Main, 15th Floor 0; Tel: (801) 524-4787
Salt Lake City, Utah ; April 20, 2009
Harris H. Simmons
Chairman/Chief Executive Officer
ZIONS BANCORPORATION REPORTS 2009 FIRST QUARTER
LOSS DRIVEN LARGELY BY NONCASH GOODWILL IMPAIRMENT
Company Builds Loan Loss Reserves by $146 Million
While Net Loan Charge-offs Decline
SALT LAKE CITY, April 20, 2009 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported a first quarter loss from core banking operations of $0.39 per diluted common share, excluding impairment and valuation losses on securities of $1.35 per diluted share and noncash charges from goodwill impairment of $5.55 per diluted share. Including these charges, the first quarter net loss applicable to common shareholders was $832.2 million, or $7.29 per diluted share.
First Quarter 2009 Highlights
| | · | Net loan charge-offs of $151.7 million compared to $179.7 million in the fourth quarter. |
| | · | Provision for loan loss reserves of $297.6 million compared to $285.2 million in the fourth quarter. |
| | · | Net interest margin of 3.93% compared to 4.20% in the fourth quarter, as the Company had on average about $3 billion in short-term investments during the quarter. |
| | · | Impairment and valuation losses on securities of $249 million, of which $182 million related to purchases of AAA and AA-rated securities from Lockhart that were downgraded. |
| | · | Noncash goodwill impairment loss of $634 million at Amegy Bank reducing its goodwill by 51%. |
| | · | Total gross extensions of credit of $3.8 billion, of which $1.9 billion were new loans (excluding loans acquired from Alliance Bank). |
ZIONS BANCORPORATION
Press Release – Page 2
April 20, 2009
“In what continues to be perhaps the most difficult economic environment in over half a century, our balance sheet remains strong, with record levels of liquidity,” said Harris H. Simmons, chairman and chief executive officer. “After several quarters of significant increases, net loan charge-offs actually declined this quarter. And over the past two quarters we have reduced the goodwill on our balance sheet by nearly 50%. While these noncash goodwill impairments impact reported earnings, they have no impact on regulatory and tangible capital ratios,” Simmons added. “In addition, we continue to successfully serve our customers and, in fact, extended $3.8 billion of credit during the quarter, of which $1.9 billion were new loans to credit-worthy individuals and businesses. This continued lending is important to our customers because it helps them manage in this very challenging environment and, in turn, will bolster the overall economy.”
Acquisition of Alliance Bank
On February 6, 2009, the Company’s California Bank & Trust subsidiary acquired the approximately $1.1 billion of assets of the failed Alliance Bank headquartered in Culver City, California from the FDIC as receiver, including the entire loan portfolio, $1.0 billion of deposits, and five branches. In addition to the excess of assets over liabilities, CB&T received approximately $10 million in cash from the FDIC and entered into a loss sharing agreement in which the FDIC generally will assume 80% of the first $275 million of credit losses and 95% of the credit losses in excess of $275 million. As a result of the loss sharing agreement, the acquired assets are presented in the Company’s balance sheet as “FDIC-supported assets.”
Loans
On-balance-sheet net loans and leases of $41.9 billion at March 31, 2009 increased approximately $0.2 billion or 2.6% annualized from $41.7 billion at December 31, 2008, and increased approximately $2.2 billion or 5.6% from $39.7 billion at March 31, 2008. The presentation of on-balance sheet net loans and leases excludes loans held for sale for all periods presented. Excluding the $0.8 billion of loans from Alliance at March 31, 2009, on-balance sheet net loans and leases decreased approximately $0.6 billion or 5.4% annualized during the quarter due to pay-downs and charge-offs.
ZIONS BANCORPORATION
Press Release – Page 3
April 20, 2009
Deposits
Average total deposits for the first quarter of 2009 increased $2.5 billion or 25.7% annualized to $42.1 billion compared to $39.6 billion for the fourth quarter of 2008, and increased $5.5 billion or 15.1% compared to $36.6 billion for the first quarter of 2008. Excluding the average deposits from Alliance for the quarter, average total deposits increased $2.0 billion or 20.6% annualized for the first quarter. The growth occurred across most deposit types. Average noninterest-bearing demand deposits increased $0.5 billion or 23.6% annualized to $9.9 billion compared to $9.4 billion for the fourth quarter of 2008, including $93.1 million of average demand deposits from Alliance. The growth in deposits was used to reduce short-term FHLB advances and other borrowings by $1.6 billion to $0.4 billion at March 31, 2009.
Net Interest Income
The net interest margin was 3.93% for the first quarter of 2009 compared to 4.20% for the fourth quarter of 2008 and 4.23% for the first quarter of 2008. The spread between loan yields and deposit rates remained essentially unchanged from the fourth quarter. The decreased net interest margin for the first quarter of 2009 compared to the fourth quarter of 2008 was driven primarily by an increase in the Company’s liquidity position accompanied by a significant decrease in yields on short-term investments, and by the increase in nonaccrual loans. On average during the quarter, the Company had approximately $3 billion of short-term investments including approximately $1 billion held by the Parent.
Net interest income for the first quarter of 2009 decreased $33.6 million to $474.8 million compared to $508.4 million for the fourth quarter of 2008, and decreased $11.7 million or 2.4% compared to $486.5 million for the first quarter of 2008.
As of March 31, 2009, the Company estimates that its available borrowing capacity from the Federal Reserve and the FHLB approximates one-third of its deposits.
Impairment Loss on Goodwill
The Company recognized an impairment loss on goodwill during the first quarter of 2009 of $634.0 million or $5.55 per diluted share compared to $353.8 million during the
ZIONS BANCORPORATION
Press Release – Page 4
April 20, 2009
fourth quarter of 2008. The first quarter impairment loss was at Amegy Bank of Texas, which has $616 million of goodwill remaining after this impairment. This loss primarily reflects declines in market values of peer banks in Texas and a weaker economic outlook in that state. The loss is a noncash accounting adjustment to the Company’s balance sheet that does not affect regulatory and tangible capital ratios. The goodwill impairment losses during the last two quarters have reduced the amount of the Company’s goodwill by approximately $1.0 billion, or half of the balance at September 30, 2008.
Asset Quality
Nonperforming assets were $1,770.2 million at March 31, 2009 ($1,663.2 million excluding FDIC-supported assets) compared to $1,140.5 million at December 31, 2008 and $434.3 million at March 31, 2008. The increase related mainly to commercial real estate loans primarily in Nevada, Arizona and Texas and to commercial and industrial loans primarily in Utah. The ratio of nonperforming assets excluding FDIC-supported assets to net loans and leases and other real estate owned was 4.00% at March 31, 2009 compared to 2.71% at December 31, 2008 and 1.09% at March 31, 2008.
Net loan and lease charge-offs for the first quarter of 2009 were $151.7 million or 1.47% annualized of average loans excluding FDIC-supported assets. This compares with $179.7 million or 1.72% annualized of average loans for the fourth quarter of 2008 and $50.8 million or 0.52% annualized of average loans for the first quarter of 2008.
The provision for loan losses was $297.6 million for the first quarter of 2009 compared to $285.2 million for the fourth quarter of 2008 and $92.3 million for the first quarter of 2008. The provision for the first quarter of 2009 was 2.88% annualized of average loans excluding FDIC-supported assets and was $145.9 million in excess of net loan and lease charge-offs.
The allowance for loan losses as a percentage of net loans and leases excluding FDIC-supported assets was 2.03% at March 31, 2009 compared to 1.65% at December 31, 2008 and 1.26% at March 31, 2008. The combined allowance for loan losses and the reserve for unfunded lending commitments was $885.6 million,
ZIONS BANCORPORATION
Press Release – Page 5
April 20, 2009
or 2.16% of net loans and leases excluding FDIC-supported assets at March 31, 2009, compared to 1.77% at December 31, 2008 and 1.33% at March 31, 2008. The $0.8 billion of loans from Alliance were recorded at fair value without a corresponding allowance for loan losses, and as noted, are supported by a loss sharing agreement with the FDIC.
Investment Securities and Lockhart Funding
During the first quarter of 2009, the Company recognized losses on investment securities of $249.4 million. These losses consisted of other-than-temporary impairment (“OTTI”) of $49.0 million or $0.26 per diluted share, and valuation losses on securities purchased of $200.4 million or $1.09 per diluted share, which included $181.7 million from Lockhart Funding LLC and $18.7 million from the purchase of auction rate securities from customers.
The Company recognized OTTI during the first quarter of 2009 according to FSP FAS 115-2 and FAS 124-2 issued by the FASB on April 9, 2009. This new guidance requires that credit-related OTTI be recognized in earnings while noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (“OCI”). The credit-related OTTI recognized in earnings during the first quarter of $49.0 million related to securities newly deemed OTTI and to securities previously adjusted for OTTI as follows:
| | · | $29.7 million for bank and insurance trust preferred CDOs (10 newly deemed OTTI, seven previous) |
| | · | $1.0 million for bank and insurance income notes (two newly deemed OTTI, two previous) |
| | · | $15.5 million for REIT trust preferred CDOs (four previous) |
| | · | $2.8 million for ABS CDOs (three previous) |
Noncredit-related OTTI on securities not expected to be sold of $82.9 million ($49.9 million after-tax) was recognized in OCI during the first quarter of 2009. Also under the new guidance, the Company reclassified the noncredit-related portion of OTTI losses previously recognized in earnings during 2008 and the fourth quarter of 2007. The $137.5 million after-tax amount was reflected as a cumulative effect adjustment that increased retained earnings and decreased accumulated OCI. This reclassification had a positive impact on regulatory capital and no impact on tangible common equity.
ZIONS BANCORPORATION
Press Release – Page 6
April 20, 2009
The $181.7 million of valuation losses on securities purchased resulted from purchases by Zions Bank from Lockhart of $537 million of AAA and AA-rated securities that were downgraded. As disclosed in a previous SEC filing, Lockhart had remaining assets of approximately $186 million at March 31, 2009 compared to $738 million at December 31, 2008. Lockhart’s diminished size will make it difficult to maintain a viable off-balance sheet commercial paper securities conduit. Accordingly, Zions Bank expects to acquire the remaining assets of Lockhart sometime during the second quarter of 2009. The fair value of Lockhart’s assets at March 31, 2009 was approximately $180 million. The effects of these security purchases and the potential acquisition of the remaining Lockhart securities on the Company’s tangible common equity ratio are discussed subsequently.
The remaining $18.7 million of valuation losses on securities purchased resulted from our voluntary purchase of all of the $255.3 million of auction rate securities previously sold to customers of certain of the Company’s subsidiaries.
Noninterest Income
Total noninterest income for the first quarter of 2009 was $(111.6) million compared to $(82.3) million for the fourth quarter of 2008 and $111.0 million for the first quarter of 2008. The amount for the first quarter of 2009 includes the previously discussed impairment and valuation losses on securities of $249.4 million compared to $204.3 million for the fourth quarter of 2008.
Fair value and nonhedge derivative income was $4.0 million during the first quarter compared to a loss of $5.8 million during the fourth quarter. The increase primarily reflects a reduced loss compared to the fourth quarter on a CDO security elected under the fair value option and net changes in credit valuation adjustments on derivatives.
Net equity securities gains (losses) were $1.9 million for the first quarter compared to $(14.1) million for the fourth quarter. The fourth quarter loss included an $11.0 million impairment on Federal Agricultural Mortgage Corporation stock.
ZIONS BANCORPORATION
Press Release – Page 7
April 20, 2009
Noninterest Expense
Noninterest expense for the first quarter of 2009 was $376.2 million compared to $398.2 million for the fourth quarter of 2008 and $350.1 million for the first quarter of 2008. Salaries and employee benefits declined $5.2 million or 2.5% compared to the first quarter of 2008, but increased from the fourth quarter of 2008 due to increased payroll taxes and to adjustments in the fourth quarter for certain employee benefit and variable compensation accruals. Other real estate expenses decreased $21.8 million from the fourth quarter of 2008 and FDIC premiums increased $8.4 million.
Capital Management
The Company’s tangible common equity ratio was 5.26% at March 31, 2009 compared to 5.89% at December 31, 2008 and 5.73% at March 31, 2008. The decrease of 63 basis points during the first quarter consisted primarily of 21 basis points from the purchases of securities from Lockhart, 10 basis points from the acquisition of Alliance Bank, and 23 basis points for the decline of securities’ fair values in OCI.
The tangible equity ratio was 8.28% at March 31, 2009 compared to 8.91% at December 31, 2008 and 6.26% at March 31, 2008. At March 31, 2009, estimated regulatory Tier 1 risk-based capital and total risk-based capital were $5,204 million and $7,374 million compared to $5,269 million and $7,386 million at December 31, 2008, respectively. Estimated ratios at March 31, 2009 for Tier 1 risk-based capital and total risk-based capital were 9.33% and 13.23% compared to 10.22% and 14.32% at December 31, 2008, respectively.
Weighted average common and common-equivalent shares outstanding for the first quarter of 2009 were 114,106,164 compared to 114,065,100 for the fourth quarter of 2008 and 106,687,211 for the first quarter of 2008. Common shares outstanding at March 31, 2009 were 115,335,668 compared to 115,344,813 at December 31, 2008 and 107,139,188 at March 31, 2008.
ZIONS BANCORPORATION
Press Release – Page 8
April 20, 2009
Conference Call
Zions will host a conference call to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 20, 2009). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-261-3417 (international: 617-614-3673) and entering the passcode 21991094, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from 6:30 p.m. ET on Monday, April 20, 2009, until midnight ET on Monday, April 27, 2009, by dialing 1-888-286-8010 (international: 617-801-6888) and entering the passcode 84841441. The webcast of the conference call will also be archived and available for 30 days.
About Zions Bancorporation
Zions Bancorporation is one of the nation’s premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through approximately 513 offices in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.
Forward-Looking Information
Statements in this news release that are based on other than historical data are forward-looking, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including changes in asset-backed commercial paper markets and valuations
ZIONS BANCORPORATION
Press Release – Page 9
April 20, 2009
in structured securities and other assets; changes in governmental policies and programs resulting from general economic and financial market conditions; changes in interest and funding rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.
Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2008 Annual Report on Form 10-K of Zions Bancorporation filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov).
The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | |
| Press Release – Page 10 | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | | | | | | | | | |
| | | Three Months Ended |
| (In thousands, except per share and ratio data) | | March 31, |
| | | 2009 | | | 2008 | | | % Change |
| EARNINGS | | | | | | | | | |
| Taxable-equivalent net interest income | | $ | 480,670 | | | $ | 492,537 | | | | (2.41 | )% |
| Taxable-equivalent revenue | | | 369,109 | | | | 603,537 | | | | (38.84 | )% |
| Net interest income | | | 474,775 | | | | 486,458 | | | | (2.40 | )% |
| Noninterest income | | | (111,561 | ) | | | 111,000 | | | | (200.51 | )% |
| Provision for loan losses | | | 297,624 | | | | 92,282 | | | | 222.52 | % |
| Noninterest expense | | | 376,205 | | | | 350,103 | | | | 7.46 | % |
| Impairment loss on goodwill | | | 633,992 | | | | - | | | | | |
| Income (loss) before income taxes | | | (944,607 | ) | | | 155,073 | | | | (709.14 | )% |
| Income taxes (benefit) | | | (138,153 | ) | | | 49,896 | | | | (376.88 | )% |
| Net income (loss) | | | (806,454 | ) | | | 105,177 | | | | (866.76 | )% |
| Net income (loss) applicable to noncontrolling interests | | | (540 | ) | | | (1,572 | ) | | | (65.65 | )% |
| Net income (loss) applicable to controlling interest | | | (805,914 | ) | | | 106,749 | | | | (854.96 | )% |
| Net earnings (loss) applicable to common shareholders | | | (832,200 | ) | | | 104,296 | | | | (897.92 | )% |
| | | | | | | | | | | | | |
| PER COMMON SHARE | | | | | | | | | | | | |
| Net earnings (loss) (diluted) | | | (7.29 | ) | | | 0.97 | | | | (851.55 | )% |
| Dividends | | | 0.04 | | | | 0.43 | | | | (90.70 | )% |
| Book value per common share | | | 34.38 | | | | 47.49 | | | | (27.61 | )% |
| | | | | | | | | | | | | |
| SELECTED RATIOS | | | | | | | | | | | | |
| Return on average assets | | | (5.90 | )% | | | 0.81 | % | | | | |
| Return on average common equity | | | (68.42 | )% | | | 8.18 | % | | | | |
| Efficiency ratio | | | 101.92 | % | | | 58.01 | % | | | | |
| Net interest margin | | | 3.93 | % | | | 4.23 | % | | | | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | |
| Press Release – Page 11 | | | | | | | | | |
| FINANCIAL HIGHLIGHTS (Continued) | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | | | | | | | | | |
| | | Three Months Ended |
| (In thousands, except share and ratio data) | | March 31, |
| | | 2009 | | | 2008 | | | % Change |
| AVERAGE BALANCES | | | | | | | | | |
| Total assets | | $ | 55,399,675 | | | $ | 52,913,823 | | | | 4.70 | % |
| Total interest-earning assets | | | 49,581,062 | | | | 46,853,435 | | | | 5.82 | % |
| Securities | | | 4,486,050 | | | | 5,341,287 | | | | (16.01 | )% |
| Net loans and leases | | | 41,888,624 | | | | 39,237,811 | | | | 6.76 | % |
| Goodwill | | | 1,654,222 | | | | 2,009,477 | | | | (17.68 | )% |
| Core deposit and other intangibles | | | 126,759 | | | | 146,363 | | | | (13.39 | )% |
| Total deposits | | | 42,128,652 | | | | 36,594,674 | | | | 15.12 | % |
| Shareholders’ equity: | | | | | | | | | | | | |
Preferred equity | | | 1,583,659 | | | | 240,000 | | | | 559.86 | % |
Common equity | | | 4,932,969 | | | | 5,126,621 | | | | (3.78 | )% |
Noncontrolling interests | | | 27,720 | | | | 30,676 | | | | (9.64 | )% |
| | | | | | | | | | | | | |
| Weighted average common and common- | | | | | | | | | | | | |
| equivalent shares outstanding | | | 114,106,164 | | | | 106,687,211 | | | | 6.95 | % |
| | | | | | | | | | | | | |
| AT PERIOD END | | | | | | | | | | | | |
| Total assets | | $ | 54,544,329 | | | $ | 53,408,293 | | | | 2.13 | % |
| Total interest-earning assets | | | 49,267,000 | | | | 46,962,949 | | | | 4.91 | % |
| Securities | | | 4,800,957 | | | | 5,002,207 | | | | (4.02 | )% |
| Net loans and leases | | | 41,932,315 | | | | 39,697,226 | | | | 5.63 | % |
| Allowance for loan losses | | | 832,878 | | | | 501,283 | | | | 66.15 | % |
| Reserve for unfunded lending commitments | | | 52,761 | | | | 25,148 | | | | 109.80 | % |
| Goodwill | | | 1,034,465 | | | | 2,009,517 | | | | (48.52 | )% |
| Core deposit and other intangibles | | | 124,585 | | | | 140,672 | | | | (11.44 | )% |
| Total deposits | | | 43,307,233 | | | | 37,516,337 | | | | 15.44 | % |
| Shareholders’ equity: | | | | | | | | | | | | |
Preferred equity | | | 1,587,027 | | | | 240,000 | | | | 561.26 | % |
Common equity | | | 3,965,296 | | | | 5,087,801 | | | | (22.06 | )% |
Noncontrolling interests | | | 26,828 | | | | 30,413 | | | | (11.79 | )% |
| | | | | | | | | | | | | |
| Common shares outstanding | | | 115,335,668 | | | | 107,139,188 | | | | 7.65 | % |
| | | | | | | | | | | | | |
| Average equity to average assets | | | 11.81 | % | | | 10.20 | % | | | | |
| Common dividend payout | | na | | | | 44.11 | % | | | | |
| Tangible common equity ratio | | | 5.26 | % | | | 5.73 | % | | | | |
| Tangible equity ratio | | | 8.28 | % | | | 6.26 | % | | | | |
| | | | | | | | | | | | | |
| Nonperforming assets, excluding covered assets | | $ | 1,663,246 | | | $ | 434,293 | | | | 282.98 | % |
| Ratio of nonperforming assets, excluding FDIC-supported | | | | | | | | | | | | |
| assets, to net loans and leases and other real estate owned | | | 4.00 | % | | | 1.09 | % | | | | |
| Accruing loans past due 90 days or more, excluding | | | | | | | | | | | | |
| FDIC-supported assets | | $ | 88,035 | | | $ | 84,637 | | | | 4.01 | % |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Press Release – Page 12 | | | | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS (Continued) | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| (In thousands, except per share and ratio data) | | March 31, | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| EARNINGS | | | | | | | | | | | | | | | |
| Taxable-equivalent net interest income | | $ | 480,670 | | | $ | 514,422 | | | $ | 497,822 | | | $ | 490,587 | | | $ | 492,537 | |
| Taxable-equivalent revenue | | | 369,109 | | | | 432,132 | | | | 587,432 | | | | 562,959 | | | | 603,537 | |
| Net interest income | | | 474,775 | | | | 508,442 | | | | 492,003 | | | | 484,743 | | | | 486,458 | |
| Noninterest income | | | (111,561 | ) | | | (82,290 | ) | | | 89,610 | | | | 72,372 | | | | 111,000 | |
| Provision for loan losses | | | 297,624 | | | | 285,189 | | | | 156,606 | | | | 114,192 | | | | 92,282 | |
| Noninterest expense | | | 376,205 | | | | 398,167 | | | | 372,276 | | | | 354,417 | | | | 350,103 | |
| Impairment loss on goodwill | | | 633,992 | | | | 353,804 | | | | - | | | | - | | | | - | |
| Income (loss) before income taxes | | | (944,607 | ) | | | (611,008 | ) | | | 52,731 | | | | 88,506 | | | | 155,073 | |
| Income taxes (benefit) | | | (138,153 | ) | | | (126,512 | ) | | | 11,214 | | | | 22,037 | | | | 49,896 | |
| Net income (loss) | | | (806,454 | ) | | | (484,496 | ) | | | 41,517 | | | | 66,469 | | | | 105,177 | |
| Net income (loss) applicable to noncontrolling interests | | | (540 | ) | | | (1,520 | ) | | | 3,757 | | | | (5,729 | ) | | | (1,572 | ) |
| Net income (loss) applicable to controlling interest | | | (805,914 | ) | | | (482,976 | ) | | | 37,760 | | | | 72,198 | | | | 106,749 | |
| Net earnings (loss) applicable to common shareholders | | | (832,200 | ) | | | (498,084 | ) | | | 33,351 | | | | 69,744 | | | | 104,296 | |
| | | | | | | | | | | | | | | | | | | | | |
| PER COMMON SHARE | | | | | | | | | | | | | | | | | | | | |
| Net earnings (loss) (diluted) | | | (7.29 | ) | | | (4.37 | ) | | | 0.31 | | | | 0.65 | | | | 0.97 | |
| Dividends | | | 0.04 | | | | 0.32 | | | | 0.43 | | | | 0.43 | | | | 0.43 | |
| Book value per common share | | | 34.38 | | | | 42.65 | | | | 45.78 | | | | 46.82 | | | | 47.49 | |
| | | | | | | | | | | | | | | | | | | | | |
| SELECTED RATIOS | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | (5.90 | )% | | | (3.52 | )% | | | 0.28 | % | | | 0.54 | % | | | 0.81 | % |
| Return on average common equity | | | (68.42 | )% | | | (38.77 | )% | | | 2.59 | % | | | 5.53 | % | | | 8.18 | % |
| Efficiency ratio | | | 101.92 | % | | | 92.14 | % | | | 63.37 | % | | | 62.96 | % | | | 58.01 | % |
| Net interest margin | | | 3.93 | % | | | 4.20 | % | | | 4.13 | % | | | 4.18 | % | | | 4.23 | % |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Press Release – Page 13 | | | | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS (Continued) | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| (In thousands, except share and ratio data) | | March 31, | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| AVERAGE BALANCES | | | | | | | | | | | | | | | |
| Total assets | | $ | 55,399,675 | | | $ | 54,546,364 | | | $ | 54,279,760 | | | $ | 53,293,375 | | | $ | 52,913,823 | |
| Total interest-earning assets | | | 49,581,062 | | | | 48,708,673 | | | | 47,984,725 | | | | 47,202,577 | | | | 46,853,435 | |
| Securities | | | 4,486,050 | | | | 4,516,559 | | | | 4,582,727 | | | | 4,866,421 | | | | 5,341,287 | |
| Net loans and leases | | | 41,888,624 | | | | 41,769,536 | | | | 41,824,097 | | | | 40,325,657 | | | | 39,237,811 | |
| Goodwill | | | 1,654,222 | | | | 1,720,536 | | | | 2,009,509 | | | | 2,009,517 | | | | 2,009,477 | |
| Core deposit and other intangibles | | | 126,759 | | | | 130,703 | | | | 132,167 | | | | 137,675 | | | | 146,363 | |
| Total deposits | | | 42,128,652 | | | | 39,580,867 | | | | 37,321,656 | | | | 36,774,214 | | | | 36,594,674 | |
| Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Preferred equity | | | 1,583,659 | | | | 961,072 | | | | 282,500 | | | | 240,000 | | | | 240,000 | |
Common equity | | | 4,932,969 | | | | 5,110,430 | | | | 5,123,399 | | | | 5,070,047 | | | | 5,126,621 | |
Noncontrolling interests | | | 27,720 | | | | 28,751 | | | | 29,949 | | | | 27,244 | | | | 30,676 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted average common and common- | | | | | | | | | | | | | | | | | | | | |
| equivalent shares outstanding | | | 114,106,164 | | | | 114,065,100 | | | | 108,497,464 | | | | 106,711,948 | | | | 106,687,211 | |
| | | | | | | | | | | | | | | | | | | | | |
| AT PERIOD END | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 54,544,329 | | | $ | 55,092,791 | | | $ | 53,974,168 | | | $ | 54,630,883 | | | $ | 53,408,293 | |
| Total interest-earning assets | | | 49,267,000 | | | | 49,071,281 | | | | 47,656,065 | | | | 47,920,419 | | | | 46,962,949 | |
| Securities | | | 4,800,957 | | | | 4,509,308 | | | | 4,755,359 | | | | 4,784,185 | | | | 5,002,207 | |
| Net loans and leases | | | 41,932,315 | | | | 41,658,738 | | | | 41,735,598 | | | | 41,714,468 | | | | 39,697,226 | |
| Allowance for loan losses | | | 832,878 | | | | 686,999 | | | | 609,433 | | | | 548,958 | | | | 501,283 | |
| Reserve for unfunded lending commitments | | | 52,761 | | | | 50,934 | | | | 23,574 | | | | 26,838 | | | | 25,148 | |
| Goodwill | | | 1,034,465 | | | | 1,651,377 | | | | 2,009,504 | | | | 2,009,511 | | | | 2,009,517 | |
| Core deposit and other intangibles | | | 124,585 | | | | 125,935 | | | | 133,989 | | | | 132,481 | | | | 140,672 | |
| Total deposits | | | 43,307,233 | | | | 41,316,496 | | | | 38,590,901 | | | | 37,607,995 | | | | 37,516,337 | |
| Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Preferred equity | | | 1,587,027 | | | | 1,581,834 | | | | 286,949 | | | | 240,000 | | | | 240,000 | |
Common equity | | | 3,965,296 | | | | 4,919,862 | | | | 5,279,078 | | | | 5,033,530 | | | | 5,087,801 | |
Noncontrolling interests | | | 26,828 | | | | 27,320 | | | | 30,288 | | | | 25,528 | | | | 30,413 | |
| | | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | | 115,335,668 | | | | 115,344,813 | | | | 115,302,598 | | | | 107,518,975 | | | | 107,139,188 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 11.81 | % | | | 11.18 | % | | | 10.01 | % | | | 10.01 | % | | | 10.20 | % |
| Common dividend payout | | na | | | na | | | | 138.44 | % | | | 66.23 | % | | | 44.11 | % |
| Tangible common equity ratio | | | 5.26 | % | | | 5.89 | % | | | 6.05 | % | | | 5.51 | % | | | 5.73 | % |
| Tangible equity ratio | | | 8.28 | % | | | 8.91 | % | | | 6.66 | % | | | 6.01 | % | | | 6.26 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets, excluding FDIC-supported assets | | $ | 1,663,246 | | | $ | 1,140,461 | | | $ | 924,442 | | | $ | 697,432 | | | $ | 434,293 | |
| Ratio of nonperforming assets, excluding FDIC-supported | | | | | | | | | | | | | | | | | |
| assets, to net loans and leases and other real estate owned | | | 4.00 | % | | | 2.71 | % | | | 2.20 | % | | | 1.66 | % | | | 1.09 | % |
| Accruing loans past due 90 days or more, excluding | | | | | | | | | | | | | | | | | | | | |
| FDIC-supported assets | | $ | 88,035 | | | $ | 129,567 | | | $ | 97,831 | | | $ | 108,934 | | | $ | 84,637 | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Press Release – Page 14 | | | | | | | | | | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | |
| | | March 31, | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| (In thousands, except share amounts) | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| ASSETS | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 1,321,972 | | | $ | 1,475,976 | | | $ | 1,441,957 | | | $ | 1,751,724 | | | $ | 1,660,539 | |
| Money market investments: | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits and commercial paper | | | 1,952,555 | | | | 2,332,759 | | | | 568,875 | | | | 504,314 | | | | 1,243,860 | |
Federal funds sold | | | 13,277 | | | | 83,451 | | | | 274,129 | | | | 274,456 | | | | 121,892 | |
Security resell agreements | | | 305,111 | | | | 286,707 | | | | 170,009 | | | | 484,487 | | | | 689,235 | |
| Investment securities: | | | | | | | | | | | | | | | | | | | | |
Held-to-maturity, at adjusted cost (approximate fair value | | | | | | | | | | | | | | | | | |
$1,361,460, $1,443,555, $1,587,006, $1,730,104 and $704,156) | | | 1,648,971 | | | | 1,790,989 | | | | 1,917,354 | | | | 1,914,833 | | | | 701,658 | |
Available-for-sale, at fair value | | | 3,086,788 | | | | 2,676,255 | | | | 2,792,236 | | | | 2,817,682 | | | | 4,259,742 | |
Trading account, at fair value (includes $0, $538, $531, | | | | | | | | | | | | | | | | | | | | |
$463 and $0 transferred as collateral under | | | | | | | | | | | | | | | | | | | | |
repurchase agreements) | | | 65,198 | | | | 42,064 | | | | 45,769 | | | | 51,670 | | | | 40,807 | |
| | | | 4,800,957 | | | | 4,509,308 | | | | 4,755,359 | | | | 4,784,185 | | | | 5,002,207 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans held for sale | | | 262,785 | | | | 200,318 | | | | 152,095 | | | | 158,509 | | | | 208,529 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | | | | | | | | | |
Loans and leases excluding FDIC-supported assets | | | 41,220,610 | | | | 41,791,237 | | | | 41,876,371 | | | | 41,874,224 | | | | 39,855,365 | |
FDIC-supported assets | | | 836,454 | | | | | | | | | | | | | | | | | |
| | | | 42,057,064 | | | | 41,791,237 | | | | 41,876,371 | | | | 41,874,224 | | | | 39,855,365 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Unearned income and fees, net of related costs | | | 124,749 | | | | 132,499 | | | | 140,773 | | | | 159,756 | | | | 158,139 | |
Allowance for loan losses | | | 832,878 | | | | 686,999 | | | | 609,433 | | | | 548,958 | | | | 501,283 | |
Loans and leases, net of allowance | | | 41,099,437 | | | | 40,971,739 | | | | 41,126,165 | | | | 41,165,510 | | | | 39,195,943 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other noninterest-bearing investments | | | 1,051,956 | | | | 1,044,092 | | | | 1,170,367 | | | | 1,153,933 | | | | 1,114,902 | |
| Premises and equipment, net | | | 701,742 | | | | 687,096 | | | | 675,480 | | | | 656,013 | | | | 657,183 | |
| Goodwill | | | 1,034,465 | | | | 1,651,377 | | | | 2,009,504 | | | | 2,009,511 | | | | 2,009,517 | |
| Core deposit and other intangibles | | | 124,585 | | | | 125,935 | | | | 133,989 | | | | 132,481 | | | | 140,672 | |
| Other real estate owned | | | 226,634 | | | | 191,792 | | | | 156,817 | | | | 125,186 | | | | 36,476 | |
| Other assets | | | 1,648,853 | | | | 1,532,241 | | | | 1,339,422 | | | | 1,430,574 | | | | 1,327,338 | |
| | | $ | 54,544,329 | | | $ | 55,092,791 | | | $ | 53,974,168 | | | $ | 54,630,883 | | | $ | 53,408,293 | |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand | | $ | 10,517,910 | | | $ | 9,683,385 | | | $ | 9,413,484 | | | $ | 9,735,265 | | | $ | 9,464,122 | |
Interest-bearing: | | | | | | | | | | | | | | | | | | | | |
Savings and NOW | | | 4,710,899 | | | | 4,452,919 | | | | 4,341,873 | | | | 4,590,767 | | | | 4,661,963 | |
Money market | | | 18,103,564 | | | | 16,826,846 | | | | 14,087,288 | | | | 13,387,401 | | | | 12,986,387 | |
Time under $100,000 | | | 3,112,864 | | | | 2,974,566 | | | | 2,954,116 | | | | 2,466,082 | | | | 2,564,434 | |
Time $100,000 and over | | | 4,647,015 | | | | 4,756,218 | | | | 4,468,225 | | | | 4,102,369 | | | | 4,548,009 | |
Foreign | | | 2,214,981 | | | | 2,622,562 | | | | 3,325,915 | | | | 3,326,111 | | | | 3,291,422 | |
| | | | 43,307,233 | | | | 41,316,496 | | | | 38,590,901 | | | | 37,607,995 | | | | 37,516,337 | |
| | | | | | | | | | | | | | | | | | | | | |
| Securities sold, not yet purchased | | | 39,892 | | | | 35,657 | | | | 29,528 | | | | 46,376 | | | | 184,522 | |
| Federal funds purchased | | | 1,213,970 | | | | 965,835 | | | | 1,179,197 | | | | 2,379,055 | | | | 1,817,587 | |
| Security repurchase agreements | | | 551,686 | | | | 899,751 | | | | 734,379 | | | | 1,010,325 | | | | 1,144,178 | |
| Other liabilities | | | 578,768 | | | | 669,111 | | | | 649,672 | | | | 555,812 | | | | 620,528 | |
| Commercial paper | | | 984 | | | | 15,451 | | | | 40,493 | | | | 137,200 | | | | 164,657 | |
| Federal Home Loan Bank advances and other borrowings: | | | | | | | | | | | | | | | | | |
One year or less | | | 429,655 | | | | 2,039,853 | | | | 4,690,784 | | | | 5,003,057 | | | | 3,956,775 | |
Over one year | | | 127,680 | | | | 128,253 | | | | 128,855 | | | | 129,474 | | | | 127,006 | |
| Long-term debt | | | 2,715,310 | | | | 2,493,368 | | | | 2,334,044 | | | | 2,462,531 | | | | 2,518,489 | |
Total liabilities | | | 48,965,178 | | | | 48,563,775 | | | | 48,377,853 | | | | 49,331,825 | | | | 48,050,079 | |
| | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Preferred stock, without par value, authorized 3,000,000 shares | | | 1,587,027 | | | | 1,581,834 | | | | 286,949 | | | | 240,000 | | | | 240,000 | |
Common stock, without par value; authorized 350,000,000 | | | | | | | | | | | | | | | | | |
shares; issued and outstanding 115,335,668, 115,344,813, | | | | | | | | | | | | | | | | | |
115,302,598, 107,518,975 and 107,139,188 shares | | | 2,607,541 | | | | 2,599,916 | | | | 2,482,517 | | | | 2,224,455 | | | | 2,219,905 | |
Retained earnings | | | 1,734,024 | | | | 2,433,363 | | | | 2,968,242 | | | | 2,981,062 | | | | 2,957,511 | |
Accumulated other comprehensive income (loss) | | | (361,537 | ) | | | (98,958 | ) | | | (157,305 | ) | | | (158,325 | ) | | | (76,429 | ) |
Deferred compensation | | | (14,732 | ) | | | (14,459 | ) | | | (14,376 | ) | | | (13,662 | ) | | | (13,186 | ) |
Controlling interest shareholders’ equity | | | 5,552,323 | | | | 6,501,696 | | | | 5,566,027 | | | | 5,273,530 | | | | 5,327,801 | |
Noncontrolling interests | | | 26,828 | | | | 27,320 | | | | 30,288 | | | | 25,528 | | | | 30,413 | |
Total shareholders’ equity | | | 5,579,151 | | | | 6,529,016 | | | | 5,596,315 | | | | 5,299,058 | | | | 5,358,214 | |
| | | $ | 54,544,329 | | | $ | 55,092,791 | | | $ | 53,974,168 | | | $ | 54,630,883 | | | $ | 53,408,293 | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | |
| Press Release – Page 15 | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| (In thousands, except per share amounts) | | March 31, | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| Interest income: | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 579,852 | | | $ | 650,885 | | | $ | 663,677 | | | $ | 643,111 | | | $ | 688,439 | |
Interest on loans held for sale | | | 2,756 | | | | 2,442 | | | | 1,916 | | | | 2,699 | | | | 3,017 | |
Lease financing | | | 4,593 | | | | 4,999 | | | | 5,515 | | | | 5,767 | | | | 5,818 | |
Interest on money market investments | | | 3,376 | | | | 7,172 | | | | 9,267 | | | | 12,313 | | | | 19,028 | |
Interest on securities: | | | | | | | | | | | | | | | | | | | | |
Held-to-maturity – taxable | | | 18,908 | | | | 22,317 | | | | 21,780 | | | | 15,730 | | | | 2,455 | |
Held-to-maturity – nontaxable | | | 6,265 | | | | 6,396 | | | | 6,319 | | | | 6,224 | | | | 6,429 | |
Available-for-sale – taxable | | | 21,703 | | | | 28,680 | | | | 25,044 | | | | 35,059 | | | | 62,356 | |
Available-for-sale – nontaxable | | | 1,678 | | | | 1,711 | | | | 1,697 | | | | 1,870 | | | | 1,892 | |
Trading account | | | 571 | | | | 598 | | | | 437 | | | | 159 | | | | 681 | |
Total interest income | | | 639,702 | | | | 725,200 | | | | 735,652 | | | | 722,932 | | | | 790,115 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
Interest on savings and money market deposits | | | 74,553 | | | | 95,717 | | | | 90,720 | | | | 80,144 | | | | 103,987 | |
Interest on time and foreign deposits | | | 62,679 | | | | 77,806 | | | | 74,837 | | | | 83,460 | | | | 106,222 | |
Interest on short-term borrowings | | | 6,020 | | | | 20,368 | | | | 50,164 | | | | 45,070 | | | | 63,273 | |
Interest on long-term borrowings | | | 21,675 | | | | 22,867 | | | | 27,928 | | | | 29,515 | | | | 30,175 | |
Total interest expense | | | 164,927 | | | | 216,758 | | | | 243,649 | | | | 238,189 | | | | 303,657 | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 474,775 | | | | 508,442 | | | | 492,003 | | | | 484,743 | | | | 486,458 | |
| Provision for loan losses | | | 297,624 | | | | 285,189 | | | | 156,606 | | | | 114,192 | | | | 92,282 | |
Net interest income after provision for loan losses | | | 177,151 | | | | 223,253 | | | | 335,397 | | | | 370,551 | | | | 394,176 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | |
Service charges and fees on deposit accounts | | | 52,788 | | | | 52,641 | | | | 53,695 | | | | 51,067 | | | | 49,585 | |
Other service charges, commissions and fees | | | 38,227 | | | | 40,532 | | | | 42,794 | | | | 42,362 | | | | 41,981 | |
Trust and wealth management income | | | 7,165 | | | | 8,910 | | | | 8,865 | | | | 10,284 | | | | 9,693 | |
Capital markets and foreign exchange | | | 13,204 | | | | 15,048 | | | | 12,257 | | | | 12,196 | | | | 10,397 | |
Dividends and other investment income | | | 9,310 | | | | 16,001 | | | | 7,042 | | | | 10,409 | | | | 12,910 | |
Loan sales and servicing income | | | 5,851 | | | | 4,420 | | | | 3,633 | | | | 8,516 | | | | 7,810 | |
Income from securities conduit | | | 1,235 | | | | 1,542 | | | | 336 | | | | 1,043 | | | | 2,581 | |
Fair value and nonhedge derivative income (loss) | | | 4,004 | | | | (5,819 | ) | | | (26,155 | ) | | | (19,789 | ) | | | 3,787 | |
Equity securities gains (losses), net | | | 1,861 | | | | (14,125 | ) | | | 12,971 | | | | (8,121 | ) | | | 10,068 | |
Fixed income securities gains (losses), net | | | 195 | | | | (1,139 | ) | | | 135 | | | | 78 | | | | 1,775 | |
Impairment losses on investment securities: | | | | | | | | | | | | | | | | | | | | |
Impairment losses on investment securities | | | (131,915 | ) | | | (196,472 | ) | | | (28,022 | ) | | | (38,761 | ) | | | (40,785 | ) |
Noncredit-related losses on securities not expected to | | | | | | | | | | | | | | | | | |
be sold (recognized in other comprehensive income) | | | 82,943 | | | | | | | | | | | | | | | | | |
Net impairment losses on investment securities | | | (48,972 | ) | | | (196,472 | ) | | | (28,022 | ) | | | (38,761 | ) | | | (40,785 | ) |
Valuation losses on securities purchased | | | (200,391 | ) | | | (7,868 | ) | | | - | | | | - | | | | (5,204 | ) |
Other | | | 3,962 | | | | 4,039 | | | | 2,059 | | | | 3,088 | | | | 6,402 | |
Total noninterest income | | | (111,561 | ) | | | (82,290 | ) | | | 89,610 | | | | 72,372 | | | | 111,000 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 204,161 | | | | 190,861 | | | | 208,995 | | | | 201,291 | | | | 209,354 | |
Occupancy, net | | | 28,327 | | | | 29,460 | | | | 30,552 | | | | 27,364 | | | | 26,799 | |
Furniture and equipment | | | 24,999 | | | | 26,507 | | | | 24,281 | | | | 25,610 | | | | 23,738 | |
Other real estate expense | | | 18,343 | | | | 40,124 | | | | 7,126 | | | | 1,290 | | | | 1,838 | |
Legal and professional services | | | 8,543 | | | | 14,774 | | | | 11,297 | | | | 11,566 | | | | 7,880 | |
Postage and supplies | | | 8,410 | | | | 9,873 | | | | 9,257 | | | | 8,536 | | | | 9,789 | |
Advertising | | | 7,148 | | | | 10,078 | | | | 6,782 | | | | 7,520 | | | | 6,351 | |
FDIC premiums | | | 14,171 | | | | 5,745 | | | | 5,286 | | | | 4,624 | | | | 4,203 | |
Impairment losses on long-lived assets | | | - | | | | 895 | | | | 2,239 | | | | - | | | | - | |
Merger related expense | | | 277 | | | | 636 | | | | 384 | | | | 281 | | | | 307 | |
Amortization of core deposit and other intangibles | | | 6,886 | | | | 8,055 | | | | 8,096 | | | | 8,191 | | | | 8,820 | |
Other | | | 54,940 | | | | 61,159 | | | | 57,981 | | | | 58,144 | | | | 51,024 | |
Total noninterest expense | | | 376,205 | | | | 398,167 | | | | 372,276 | | | | 354,417 | | | | 350,103 | |
| | | | | | | | | | | | | | | | | | | | | |
| Impairment loss on goodwill | | | 633,992 | | | | 353,804 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | (944,607 | ) | | | (611,008 | ) | | | 52,731 | | | | 88,506 | | | | 155,073 | |
| Income taxes (benefit) | | | (138,153 | ) | | | (126,512 | ) | | | 11,214 | | | | 22,037 | | | | 49,896 | |
Net income (loss) | | | (806,454 | ) | | | (484,496 | ) | | | 41,517 | | | | 66,469 | | | | 105,177 | |
| Net income (loss) applicable to noncontrolling interests | | | (540 | ) | | | (1,520 | ) | | | 3,757 | | | | (5,729 | ) | | | (1,572 | ) |
Net income (loss) applicable to controlling interest | | | (805,914 | ) | | | (482,976 | ) | | | 37,760 | | | | 72,198 | | | | 106,749 | |
| Preferred stock dividends | | | 26,286 | | | | 15,108 | | | | 4,409 | | | | 2,454 | | | | 2,453 | |
Net earnings (loss) applicable to common shareholders | | $ | (832,200 | ) | | $ | (498,084 | ) | | $ | 33,351 | | | $ | 69,744 | | | $ | 104,296 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | | | | | | | | |
Basic shares | | | 114,106 | | | | 114,065 | | | | 108,407 | | | | 106,595 | | | | 106,514 | |
Diluted shares | | | 114,106 | | | | 114,065 | | | | 108,497 | | | | 106,712 | | | | 106,687 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net earnings (loss) per common share: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | (7.29 | ) | | $ | (4.37 | ) | | $ | 0.31 | | | $ | 0.65 | | | $ | 0.97 | |
Diluted | | | (7.29 | ) | | | (4.37 | ) | | | 0.31 | | | | 0.65 | | | | 0.97 | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | | |
| Press Release – Page 16 | | | | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | | | | | | | | | | |
| AND COMPREHENSIVE INCOME | | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | Accumulated | | | | | | | | | | |
| | | | | | | | | | other | | | | | | | | | Total | |
| (In thousands, except per share amounts) | | Preferred | | | Common | | | Retained | | | comprehensive | | | Deferred | | | Noncontrolling | | | shareholders’ | |
| | | stock | | | stock | | | earnings | | | income (loss) | | | compensation | | | interests | | | equity | |
| | | | | | | | | | | | | | | | | | | | | | |
| Balance, December 31, 2008 | | $ | 1,581,834 | | | $ | 2,599,916 | | | $ | 2,433,363 | | | $ | (98,958 | ) | | $ | (14,459 | ) | | $ | 27,320 | | | $ | 6,529,016 | |
| Cumulative effect of change in accounting principle, | | | | | | | | | | | | | | | | | | | | | | | | | |
adoption of FSP FAS 115-2 and 124-2 | | | | | | | | | | | 137,462 | | | | (137,462 | ) | | | | | | | | | | | - | |
| Comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss for the period | | | | | | | | | | | (805,914 | ) | | | | | | | | | | | (540 | ) | | | (806,454 | ) |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized holding losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
on investments and retained interests | | | | | | | | | | | | | | | (93,563 | ) | | | | | | | | | | | | |
Reclassification for net realized losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
on investments recorded in operations | | | | | | | | | | | | | | | 28,062 | | | | | | | | | | | | | |
Noncredit-related impairment losses on debt | | | | | | | | | | | | | | | | | | | | | | | | | |
securities not expected to be sold | | | | | | | | | | | | | | | (49,928 | ) | | | | | | | | | | | | |
Amortization of debt securities with noncredit- | | | | | | | | | | | | | | | | | | | | | | | | |
related impairment losses not expected to be sold | | | | | | | | | | | | | | | 896 | | | | | | | | | | | | | |
Net unrealized losses on derivative instruments | | | | | | | | | | | | (10,584 | ) | | | | | | | | | | | | |
Other comprehensive loss | | | | | | | | | | | | | | | (125,117 | ) | | | | | | | | | | | (125,117 | ) |
Total comprehensive loss | | | | | | | | | | | | | | | | | | | | | | | | | | | (931,571 | ) |
| Net stock issued under employee | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
plans and related tax benefits | | | | | | | 7,625 | | | | | | | | | | | | | | | | | | | | 7,625 | |
| Dividends on preferred stock | | | 5,193 | | | | | | | | (26,286 | ) | | | | | | | | | | | | | | | (21,093 | ) |
| Dividends on common stock, $.04 per share | | | | | | | | (4,601 | ) | | | | | | | | | | | | | | | (4,601 | ) |
| Change in deferred compensation | | | | | | | | | | | | | | | | | | | (273 | ) | | | | | | | (273 | ) |
| Activity in noncontrolling interests | | | | | | | | | | | | | | | | | | | | | | | 48 | | | | 48 | |
| Balance, March 31, 2009 | | $ | 1,587,027 | | | $ | 2,607,541 | | | $ | 1,734,024 | | | $ | (361,537 | ) | | $ | (14,732 | ) | | $ | 26,828 | | | $ | 5,579,151 | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | | |
| Press Release – Page 17 | | | | | | | | | | | | | | | | | | |
| INVESTMENT SECURITIES PORTFOLIO | | | | | | | | | | | | | | | | | | |
| ASSET-BACKED SECURITIES CLASSIFIED AT HIGHEST CREDIT RATING* | | | | | | | | | | |
As of March 31, 2009 1 | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | Net | | | | | | Net | | | | |
| | | | | | | | | unrealized | | | | | | unrealized | | | | |
| | | | | | | | | gains (losses) | | | | gains (losses) | | | Estimated | |
| | | Par | | | Amortized | | | recognized | | | Carrying | | | not recognized | | | fair | |
| (In thousands) | | value | | | cost | | | in OCI 2 | | | value | | | in OCI 2 | | | value | |
| | | | | | | | | | | | | | | | | | | |
| HELD-TO-MATURITY: | | | | | | | | | | | | | | | | | | |
| Municipal securities | | $ | 682,646 | | | $ | 679,709 | | | $ | - | | | $ | 679,709 | | | $ | (2,100 | ) | | $ | 677,609 | |
| Asset-backed securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Trust preferred securities – banks and insurance | | | | | | | | | | | | | | | | | | | | | |
AA rated | | | | | | | | | | | | | | | | | | | | | | | | |
A rated | | | 11,929 | | | | 11,930 | | | | (1,440 | ) | | | 10,490 | | | | (2,315 | ) | | | 8,175 | |
BBB rated | | | 22,874 | | | | 22,899 | | | | (2,240 | ) | | | 20,659 | | | | (5,209 | ) | | | 15,450 | |
Noninvestment grade | | | 1,229,704 | | | | 1,189,768 | | | | (337,475 | ) | | | 852,293 | | | | (247,857 | ) | | | 604,436 | |
| | | | 1,264,507 | | | | 1,224,597 | | | | (341,155 | ) | | | 883,442 | | | | (255,381 | ) | | | 628,061 | |
Trust preferred securities – real estate investment trusts | | | | | | | | | | | | | | | | | | | | | |
Noninvestment grade | | | 45,000 | | | | 36,055 | | | | (8,599 | ) | | | 27,456 | | | | (9,036 | ) | | | 18,420 | |
| | | | 45,000 | | | | 36,055 | | | | (8,599 | ) | | | 27,456 | | | | (9,036 | ) | | | 18,420 | |
Other | | | | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 23,407 | | | | 21,777 | | | | (168 | ) | | | 21,609 | | | | (8,383 | ) | | | 13,226 | |
AA rated | | | 4,100 | | | | 3,466 | | | | (1,096 | ) | | | 2,370 | | | | 586 | | | | 2,956 | |
A rated | | | 21,000 | | | | 19,072 | | | | 47 | | | | 19,119 | | | | (11,378 | ) | | | 7,741 | |
BBB rated | | | 25,000 | | | | 22,622 | | | | (11,704 | ) | | | 10,918 | | | | (1,761 | ) | | | 9,157 | |
Noninvestment grade | | | 12,619 | | | | 9,437 | | | | (5,189 | ) | | | 4,248 | | | | (56 | ) | | | 4,192 | |
| | | | 86,126 | | | | 76,374 | | | | (18,110 | ) | | | 58,264 | | | | (20,992 | ) | | | 37,272 | |
| Other debt securities | | | 100 | | | | 100 | | | | - | | | | 100 | | | | (2 | ) | | | 98 | |
| | | | 2,078,379 | | | | 2,016,835 | | | | (367,864 | ) | | | 1,648,971 | | | | (287,511 | ) | | | 1,361,460 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| AVAILABLE-FOR-SALE: | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Treasury securities | | | 27,546 | | | | 26,977 | | | | 888 | | | | 27,865 | | | | | | | | 27,865 | |
| U.S. Government agencies and corporations: | | | | | | | | | | | | | | | | | | | | | | | | |
Agency securities | | | 305,018 | | | | 305,317 | | | | 2,702 | | | | 308,019 | | | | | | | | 308,019 | |
Agency guaranteed mortgage-backed securities | | | 463,849 | | | | 465,285 | | | | 8,887 | | | | 474,172 | | | | | | | | 474,172 | |
Small Business Administration loan-backed securities | | | 636,656 | | | | 682,179 | | | | (26,395 | ) | | | 655,784 | | | | | | | | 655,784 | |
| Municipal securities | | | 244,937 | | | | 241,444 | | | | 2,416 | | | | 243,860 | | | | | | | | 243,860 | |
| Asset-backed securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Trust preferred securities – banks and insurance | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 86,707 | | | | 85,950 | | | | (12,344 | ) | | | 73,606 | | | | | | | | 73,606 | |
AA rated | | | 642,514 | | | | 481,164 | | | | (51,334 | ) | | | 429,830 | | | | | | | | 429,830 | |
A rated | | | 367,646 | | | | 356,541 | | | | (146,079 | ) | | | 210,462 | | | | | | | | 210,462 | |
BBB rated | | | 163,696 | | | | 139,360 | | | | (34,822 | ) | | | 104,538 | | | | | | | | 104,538 | |
Not rated | | | 26,020 | | | | 25,003 | | | | (9,994 | ) | | | 15,009 | | | | | | | | 15,009 | |
Noninvestment grade | | | 179,766 | | | | 147,618 | | | | (82,083 | ) | | | 65,535 | | | | | | | | 65,535 | |
| | | | 1,466,349 | | | | 1,235,636 | | | | (336,656 | ) | | | 898,980 | | | | | | | | 898,980 | |
Trust preferred securities – real estate investment trusts | | | | | | | | | | | | | | | | | | | | | |
Noninvestment grade | | | 145,000 | | | | 92,889 | | | | (71,870 | ) | | | 21,019 | | | | | | | | 21,019 | |
| | | | 145,000 | | | | 92,889 | | | | (71,870 | ) | | | 21,019 | | | | | | | | 21,019 | |
Auction rate securities | | | | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 178,375 | | | | 167,037 | | | | - | | | | 167,037 | | | | | | | | 167,037 | |
A rated | | | 7,300 | | | | 4,660 | | | | - | | | | 4,660 | | | | | | | | 4,660 | |
Noninvestment grade | | | 6,800 | | | | 6,183 | | | | - | | | | 6,183 | | | | | | | | 6,183 | |
| | | | 192,475 | | | | 177,880 | | | | - | | | | 177,880 | | | | | | | | 177,880 | |
Other | | | | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 61,540 | | | | 58,449 | | | | (16,295 | ) | | | 42,154 | | | | | | | | 42,154 | |
AA rated | | | 3,669 | | | | 2,083 | | | | (221 | ) | | | 1,862 | | | | | | | | 1,862 | |
A rated | | | 50,000 | | | | 48,277 | | | | (12,287 | ) | | | 35,990 | | | | | | | | 35,990 | |
BBB rated | | | 6,146 | | | | 4,650 | | | | (1,995 | ) | | | 2,655 | | | | | | | | 2,655 | |
Noninvestment grade | | | 49,012 | | | | 10,441 | | | | (3,758 | ) | | | 6,683 | | | | | | | | 6,683 | |
| | | | 170,367 | | | | 123,900 | | | | (34,556 | ) | | | 89,344 | | | | | | | | 89,344 | |
| | | | 3,652,197 | | | | 3,351,507 | | | | (454,584 | ) | | | 2,896,923 | | | | | | | | 2,896,923 | |
| Other securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds and stock | | | 189,865 | | | | 189,865 | | | | - | | | | 189,865 | | | | | | | | 189,865 | |
| | | | 3,842,062 | | | | 3,541,372 | | | | (454,584 | ) | | | 3,086,788 | | | | | | | | 3,086,788 | |
| Total | | $ | 5,920,441 | | | $ | 5,558,207 | | | $ | (822,448 | ) | | $ | 4,735,759 | | | $ | (287,511 | ) | | $ | 4,448,248 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| * Ratings categories include entire range. For example, "A rated" includes A+, A and A-. Split rated securities with more than one rating are categorized at the | |
| highest rating level. | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
1 Schedule reflects ratings as of April 16, 2009. | | | | | | | | | | | | | | | | | | | | | |
2 Other comprehensive income. All amounts reported are pretax. | | | | | | | | | | | | | | | | | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | | |
| Press Release – Page 18 | | | | | | | | | | | | | | | | | | |
| INVESTMENT SECURITIES PORTFOLIO | | | | | | | | | | | | | | | | | | |
| ASSET-BACKED SECURITIES CLASSIFIED AT LOWEST CREDIT RATING* | | | | | | | | | | |
As of March 31, 2009 1 | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | Net | | | | | | Net | | | | |
| | | | | | | | | unrealized | | | | | | unrealized | | | | |
| | | | | | | | | gains (losses) | | | | | | gains (losses) | | | Estimated | |
| | | Par | | | Amortized | | | recognized | | | Carrying | | | not recognized | | | fair | |
| (In thousands) | | value | | | cost | | | in OCI 2 | | | value | | | in OCI 2 | | | value | |
| | | | | | | | | | | | | | | | | | | |
| HELD-TO-MATURITY: | | | | | | | | | | | | | | | | | | |
| Municipal securities | | $ | 682,646 | | | $ | 679,709 | | | $ | - | | | $ | 679,709 | | | $ | (2,100 | ) | | $ | 677,609 | |
| Asset-backed securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Trust preferred securities – banks and insurance | | | | | | | | | | | | | | | | | | | | | |
Noninvestment grade | | | 1,264,507 | | | | 1,224,597 | | | | (341,155 | ) | | | 883,442 | | | | (255,381 | ) | | | 628,061 | |
| | | | 1,264,507 | | | | 1,224,597 | | | | (341,155 | ) | | | 883,442 | | | | (255,381 | ) | | | 628,061 | |
Trust preferred securities – real estate investment trusts | | | | | | | | | | | | | | | | | | | | | |
Noninvestment grade | | | 45,000 | | | | 36,055 | | | | (8,599 | ) | | | 27,456 | | | | (9,036 | ) | | | 18,420 | |
| | | | 45,000 | | | | 36,055 | | | | (8,599 | ) | | | 27,456 | | | | (9,036 | ) | | | 18,420 | |
Other | | | | | | | | | | | | | | | | | | | | | | | | |
AA rated | | | 5,407 | | | | 5,171 | | | | (112 | ) | | | 5,059 | | | | (147 | ) | | | 4,912 | |
Noninvestment grade | | | 80,719 | | | | 71,203 | | | | (17,998 | ) | | | 53,205 | | | | (20,845 | ) | | | 32,360 | |
| | | | 86,126 | | | | 76,374 | | | | (18,110 | ) | | | 58,264 | | | | (20,992 | ) | | | 37,272 | |
| Other debt securities | | | 100 | | | | 100 | | | | - | | | | 100 | | | | (2 | ) | | | 98 | |
| | | | 2,078,379 | | | | 2,016,835 | | | | (367,864 | ) | | | 1,648,971 | | | | (287,511 | ) | | | 1,361,460 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| AVAILABLE-FOR-SALE: | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Treasury securities | | | 27,546 | | | | 26,977 | | | | 888 | | | | 27,865 | | | | | | | | 27,865 | |
| U.S. Government agencies and corporations: | | | | | | | | | | | | | | | | | | | | | | | | |
Agency securities | | | 305,018 | | | | 305,317 | | | | 2,702 | | | | 308,019 | | | | | | | | 308,019 | |
Agency guaranteed mortgage-backed securities | | | 463,849 | | | | 465,285 | | | | 8,887 | | | | 474,172 | | | | | | | | 474,172 | |
Small Business Administration loan-backed securities | | | 636,656 | | | | 682,179 | | | | (26,395 | ) | | | 655,784 | | | | | | | | 655,784 | |
| Municipal securities | | | 244,937 | | | | 241,444 | | | | 2,416 | | | | 243,860 | | | | | | | | 243,860 | |
| Asset-backed securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Trust preferred securities – banks and insurance | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 5,947 | | | | 5,947 | | | | (79 | ) | | | 5,868 | | | | | | | | 5,868 | |
AA rated | | | 141,379 | | | | 133,313 | | | | (9,614 | ) | | | 123,699 | | | | | | | | 123,699 | |
A rated | | | 149,604 | | | | 121,394 | | | | (5,410 | ) | | | 115,984 | | | | | | | | 115,984 | |
BBB rated | | | 257,771 | | | | 180,563 | | | | (8,229 | ) | | | 172,334 | | | | | | | | 172,334 | |
Not rated | | | 26,020 | | | | 25,003 | | | | (9,994 | ) | | | 15,009 | | | | | | | | 15,009 | |
Noninvestment grade | | | 885,628 | | | | 769,416 | | | | (303,330 | ) | | | 466,086 | | | | | | | | 466,086 | |
| | | | 1,466,349 | | | | 1,235,636 | | | | (336,656 | ) | | | 898,980 | | | | | | | | 898,980 | |
Trust preferred securities – real estate investment trusts | | | | | | | | | | | | | | | | | | | | | |
Noninvestment grade | | | 145,000 | | | | 92,889 | | | | (71,870 | ) | | | 21,019 | | | | | | | | 21,019 | |
| | | | 145,000 | | | | 92,889 | | | | (71,870 | ) | | | 21,019 | | | | | | | | 21,019 | |
Auction rate securities | | | | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 178,375 | | | | 167,037 | | | | - | | | | 167,037 | | | | | | | | 167,037 | |
A rated | | | 4,300 | | | | 1,793 | | | | - | | | | 1,793 | | | | | | | | 1,793 | |
Noninvestment grade | | | 9,800 | | | | 9,050 | | | | - | | | | 9,050 | | | | | | | | 9,050 | |
| | | | 192,475 | | | | 177,880 | | | | - | | | | 177,880 | | | | | | | | 177,880 | |
Other | | | | | | | | | | | | | | | | | | | | | | | | |
AAA rated | | | 39,905 | | | | 36,924 | | | | (11,154 | ) | | | 25,770 | | | | | | | | 25,770 | |
AA rated | | | 5,299 | | | | 5,299 | | | | (1,242 | ) | | | 4,057 | | | | | | | | 4,057 | |
BBB rated | | | 56,358 | | | | 53,032 | | | | (14,105 | ) | | | 38,927 | | | | | | | | 38,927 | |
Noninvestment grade | | | 68,805 | | | | 28,645 | | | | (8,055 | ) | | | 20,590 | | | | | | | | 20,590 | |
| | | | 170,367 | | | | 123,900 | | | | (34,556 | ) | | | 89,344 | | | | | | | | 89,344 | |
| | | | 3,652,197 | | | | 3,351,507 | | | | (454,584 | ) | | | 2,896,923 | | | | | | | | 2,896,923 | |
| Other securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds and stock | | | 189,865 | | | | 189,865 | | | | - | | | | 189,865 | | | | | | | | 189,865 | |
| | | | 3,842,062 | | | | 3,541,372 | | | | (454,584 | ) | | | 3,086,788 | | | | | | | | 3,086,788 | |
| Total | | $ | 5,920,441 | | | $ | 5,558,207 | | | $ | (822,448 | ) | | $ | 4,735,759 | | | $ | (287,511 | ) | | $ | 4,448,248 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| * Ratings categories include entire range. For example, "A rated" includes A+, A and A-. Split rated securities with more than one rating are categorized at the | |
| lowest rating level. | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
1 Schedule reflects ratings as of April 16, 2009. | | | | | | | | | | | | | | | | | | | | | |
2 Other comprehensive income. All amounts reported are pretax. | | | | | | | | | | | | | | | | | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | |
| Press Release – Page 19 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Nonperforming Assets | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (In thousands) | | March 31, | | | December 31, | | September 30, | | June 30, | | | March 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 1,421,279 | | | $ | 946,583 | | | $ | 765,522 | | | $ | 570,101 | | | $ | 387,717 | |
| Restructured loans | | | 15,333 | | | | 2,086 | | | | 2,103 | | | | 2,145 | | | | 10,100 | |
| Other real estate owned | | | 226,634 | | | | 191,792 | | | | 156,817 | | | | 125,186 | | | | 36,476 | |
Nonperforming assets, excluding FDIC-supported assets | | | 1,663,246 | | | | 1,140,461 | | | | 924,442 | | | | 697,432 | | | | 434,293 | |
FDIC-supported assets 1 | | | 106,910 | | | | - | | | | - | | | | - | | | | - | |
Total nonperforming assets | | $ | 1,770,156 | | | $ | 1,140,461 | | | $ | 924,442 | | | $ | 697,432 | | | $ | 434,293 | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratio of nonperforming assets, excluding FDIC-supported assets, | | | | | | | | | | | | | | | | | |
to net loans and leases 2 and other real estate owned | | | 4.00 | % | | | 2.71 | % | | | 2.20 | % | | | 1.66 | % | | | 1.09 | % |
Ratio of nonperforming assets to net loans and leases 2 | | | | | | | | | | | | | | | | | |
and other real estate owned | | | 4.17 | % | | | 2.71 | % | | | 2.20 | % | | | 1.66 | % | | | 1.09 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Accruing loans past due 90 days or more, excluding | | | | | | | | | | | | | | | | | | | | |
FDIC-supported assets | | $ | 88,035 | | | $ | 129,567 | | | $ | 97,831 | | | $ | 108,934 | | | $ | 84,637 | |
| Accruing loans past due 90 days or more | | | 112,400 | | | | 129,567 | | | | 97,831 | | | | 108,934 | | | | 84,637 | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratio of accruing loans past due 90 day or more, excluding | | | | | | | | | | | | | | | | | |
FDIC-supported assets, to net loans and leases 2 | | | 0.21 | % | | | 0.31 | % | | | 0.23 | % | | | 0.26 | % | | | 0.21 | % |
| Ratio of accruing loans past due 90 day or more to net | | | | | | | | | | | | | | | | | | | | |
loans and leases 2 | | | 0.27 | % | | | 0.31 | % | | | 0.23 | % | | | 0.26 | % | | | 0.21 | % |
| | | | | | | | | | | | | | | | | | | | | |
1 FDIC-supported assets represent assets acquired from the FDIC subject to a loss sharing agreement. | | | | | |
2 Includes loans held for sale. | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance and Reserve for Credit Losses | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| (In thousands) | | March 31, | | | December 31, | | September 30, | | June 30, | | | March 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 686,999 | | | $ | 609,433 | | | $ | 548,958 | | | $ | 501,283 | | | $ | 459,376 | |
| Allowance associated with purchased | | | | | | | | | | | | | | | | | | | | |
securitized loans and loans sold | | | - | | | | 30 | | | | (804 | ) | | | 1,301 | | | | 425 | |
| Add: | | | | | | | | | | | | | | | | | | | | |
Provision for losses | | | 297,624 | | | | 285,189 | | | | 156,606 | | | | 114,192 | | | | 92,282 | |
| Deduct: | | | | | | | | | | | | | | | | | | | | |
Loan and lease charge-offs | | | (157,691 | ) | | | (185,317 | ) | | | (100,241 | ) | | | (75,378 | ) | | | (53,751 | ) |
Recoveries | | | 5,946 | | | | 5,601 | | | | 4,914 | | | | 7,560 | | | | 2,951 | |
Net loan and lease charge-offs | | | (151,745 | ) | | | (179,716 | ) | | | (95,327 | ) | | | (67,818 | ) | | | (50,800 | ) |
Reclassification to reserve for unfunded | | | | | | | | | | | | | | | | | | | | |
lending commitments | | | - | | | | (27,937 | ) | | | - | | | | - | | | | - | |
| Balance at end of period | | $ | 832,878 | | | $ | 686,999 | | | $ | 609,433 | | | $ | 548,958 | | | $ | 501,283 | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratio of allowance for loan losses to net loans | | | | | | | | | | | | | | | | | | | | |
and leases, excluding FDIC-supported assets, | | | | | | | | | | | | | | | | | | | | |
outstanding at period end | | | 2.03 | % | | | 1.65 | % | | | 1.46 | % | | | 1.32 | % | | | 1.26 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Ratio of allowance for loan losses to nonperforming | | | | | | | | | | | | | | | | | | | | |
loans, excluding FDIC-supported assets, at period end | | | 57.98 | % | | | 72.42 | % | | | 79.39 | % | | | 95.93 | % | | | 126.01 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Reserve for Unfunded Lending Commitments | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 50,934 | | | $ | 23,574 | | | $ | 26,838 | | | $ | 25,148 | | | $ | 21,530 | |
| Reclassification from allowance for loan losses | | | - | | | | 27,937 | | | | - | | | | - | | | | - | |
| Provision charged (credited) against earnings | | | 1,827 | | | | (577 | ) | | | (3,264 | ) | | | 1,690 | | | | 3,618 | |
| Balance at end of period | | $ | 52,761 | | | $ | 50,934 | | | $ | 23,574 | | | $ | 26,838 | | | $ | 25,148 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Allowance and Reserve for Credit Losses | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | $ | 832,878 | | | $ | 686,999 | | | $ | 609,433 | | | $ | 548,958 | | | $ | 501,283 | |
| Reserve for unfunded lending commitments | | | 52,761 | | | | 50,934 | | | | 23,574 | | | | 26,838 | | | | 25,148 | |
| Total allowance and reserve for credit losses | | $ | 885,639 | | | $ | 737,933 | | | $ | 633,007 | | | $ | 575,796 | | | $ | 526,431 | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratio of total allowance and reserve for credit losses | | | | | | | | | | | | | | | | | | | | |
to net loans and leases outstanding, excluding | | | | | | | | | | | | | | | | | | | | |
FDIC-supported assets, at period end | | | 2.16 | % | | | 1.77 | % | | | 1.52 | % | | | 1.38 | % | | | 1.33 | % |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | |
| Press Release – Page 20 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Loan Balances By Portfolio Type | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| | | March 31, | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| (amounts in millions) | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| | | | | | | | | | | | | | | | |
| Commercial lending: | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 10,958 | | | $ | 11,447 | | | $ | 11,351 | | | $ | 11,247 | | | $ | 10,626 | |
Leasing | | | 401 | | | | 431 | | | | 451 | | | | 492 | | | | 494 | |
Owner occupied | | | 8,769 | | | | 8,743 | | | | 8,782 | | | | 8,912 | | | | 7,910 | |
Total commercial lending | | | 20,128 | | | | 20,621 | | | | 20,584 | | | | 20,651 | | | | 19,030 | |
| | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | 7,265 | | | | 7,516 | | | | 7,812 | | | | 7,891 | | | | 7,937 | |
Term | | | 6,559 | | | | 6,196 | | | | 6,079 | | | | 5,939 | | | | 5,569 | |
Total commercial real estate | | | 13,824 | | | | 13,712 | | | | 13,891 | | | | 13,830 | | | | 13,506 | |
| | | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | | |
Home equity credit line | | | 2,058 | | | | 2,005 | | | | 1,899 | | | | 1,794 | | | | 1,674 | |
1-4 family residential | | | 3,817 | | | | 3,877 | | | | 3,892 | | | | 3,914 | | | | 3,920 | |
Construction and other consumer real estate | | | 666 | | | | 774 | | | | 769 | | | | 852 | | | | 910 | |
Bankcard and other revolving plans | | | 327 | | | | 374 | | | | 360 | | | | 332 | | | | 316 | |
Other | | | 358 | | | | 385 | | | | 411 | | | | 436 | | | | 440 | |
Total consumer | | | 7,226 | | | | 7,415 | | | | 7,331 | | | | 7,328 | | | | 7,260 | |
| | | | | | | | | | | | | | | | | | | | | |
| Foreign loans | | | 43 | | | | 43 | | | | 70 | | | | 65 | | | | 59 | |
| | | | | | | | | | | | | | | | | | | | | |
FDIC-supported assets 1 | | | 836 | | | | | | | | | | | | | | | | | |
Total loans | | $ | 42,057 | | | $ | 41,791 | | | $ | 41,876 | | | $ | 41,874 | | | $ | 39,855 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
1 FDIC-supported assets represent assets acquired from the FDIC subject to a loss sharing agreement and include expected | |
| reimbursements from the FDIC of approximately $159 million. | | | | | | | | | | | | | | | | | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | | | | | | | | | | | | |
| Press Release – Page 21 | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Three Months Ended |
| | | March 31, 2009 | | December 31, 2008 |
| (In thousands) | | Average | | | Amount of | | | Average | | Average | | | Amount of | | | Average |
| | | balance | | | interest 1 | | | rate | | balance | | | interest1 | | | rate |
| ASSETS | | | | | | | | | | | | | | | | | | |
| Money market investments | | $ | 2,961,701 | | | $ | 3,376 | | | | 0.46 | % | | $ | 2,253,528 | | | $ | 7,172 | | | | 1.27 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Held-to-maturity | | | 1,786,617 | | | | 28,546 | | | | 6.48 | % | | | 1,905,766 | | | | 32,157 | | | | 6.71 | % |
Available-for-sale | | | 2,643,327 | | | | 24,285 | | | | 3.73 | % | | | 2,563,569 | | | | 31,313 | | | | 4.86 | % |
Trading account | | | 56,106 | | | | 571 | | | | 4.13 | % | | | 47,224 | | | | 598 | | | | 5.04 | % |
Total securities | | | 4,486,050 | | | | 53,402 | | | | 4.83 | % | | | 4,516,559 | | | | 64,068 | | | | 5.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans held for sale | | | 244,687 | | | | 2,756 | | | | 4.57 | % | | | 169,050 | | | | 2,442 | | | | 5.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Net loans and leases excluding FDIC-supported assets 2 | | | 41,383,829 | | | | 579,020 | | | | 5.67 | % | | | 41,769,536 | | | | 657,498 | | | | 6.26 | % |
FDIC-supported assets | | | 504,795 | | | | 7,043 | | | | 5.66 | % | | | | | | | | | | | | |
Total loans and leases | | | 41,888,624 | | | | 586,063 | | | | 5.67 | % | | | 41,769,536 | | | | 657,498 | | | | 6.26 | % |
| Total interest-earning assets | | | 49,581,062 | | | | 645,597 | | | | 5.28 | % | | | 48,708,673 | | | | 731,180 | | | | 5.97 | % |
| Cash and due from banks | | | 1,364,473 | | | | | | | | | | | | 1,359,684 | | | | | | | | | |
| Allowance for loan losses | | | (714,642 | ) | | | | | | | | | | | (627,268 | ) | | | | | | | | |
| Goodwill | | | 1,654,222 | | | | | | | | | | | | 1,720,536 | | | | | | | | | |
| Core deposit and other intangibles | | | 126,759 | | | | | | | | | | | | 130,703 | | | | | | | | | |
| Other assets | | | 3,387,801 | | | | | | | | | | | | 3,254,036 | | | | | | | | | |
Total assets | | $ | 55,399,675 | | | | | | | | | | | $ | 54,546,364 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
Savings and NOW | | $ | 4,529,097 | | | | 5,799 | | | | 0.52 | % | | $ | 4,368,768 | | | | 8,008 | | | | 0.73 | % |
Money market | | | 17,480,861 | | | | 68,754 | | | | 1.60 | % | | | 15,331,993 | | | | 87,709 | | | | 2.28 | % |
Time under $100,000 | | | 3,103,857 | | | | 21,793 | | | | 2.85 | % | | | 3,008,645 | | | | 23,855 | | | | 3.15 | % |
Time $100,000 and over | | | 4,753,453 | | | | 33,486 | | | | 2.86 | % | | | 4,794,768 | | | | 39,464 | | | | 3.27 | % |
Foreign | | | 2,356,293 | | | | 7,400 | | | | 1.27 | % | | | 2,723,174 | | | | 14,487 | | | | 2.12 | % |
Total interest-bearing deposits | | | 32,223,561 | | | | 137,232 | | | | 1.73 | % | | | 30,227,348 | | | | 173,523 | | | | 2.28 | % |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
Securities sold, not yet purchased | | | 33,469 | | | | 439 | | | | 5.32 | % | | | 32,930 | | | | 434 | | | | 5.24 | % |
Federal funds purchased and security | | | | | | | | | | | | | | | | | | | | | | | | |
repurchase agreements | | | 2,333,675 | | | | 1,850 | | | | 0.32 | % | | | 2,344,500 | | | | 4,289 | | | | 0.73 | % |
Commercial paper | | | 3,383 | | | | 14 | | | | 1.68 | % | | | 10,844 | | | | 81 | | | | 2.97 | % |
FHLB advances and other borrowings: | | | | | | | | | | | | | | | | | | | | | | | | |
One year or less | | | 935,108 | | | | 3,717 | | | | 1.61 | % | | | 3,422,389 | | | | 15,564 | | | | 1.81 | % |
Over one year | | | 127,942 | | | | 1,803 | | | | 5.72 | % | | | 128,557 | | | | 1,848 | | | | 5.72 | % |
Long-term debt | | | 2,659,678 | | | | 19,872 | | | | 3.03 | % | | | 2,379,407 | | | | 21,019 | | | | 3.51 | % |
Total borrowed funds | | | 6,093,255 | | | | 27,695 | | | | 1.84 | % | | | 8,318,627 | | | | 43,235 | | | | 2.07 | % |
| Total interest-bearing liabilities | | | 38,316,816 | | | | 164,927 | | | | 1.75 | % | | | 38,545,975 | | | | 216,758 | | | | 2.24 | % |
| Noninterest-bearing deposits | | | 9,905,091 | | | | | | | | | | | | 9,353,519 | | | | | | | | | |
| Other liabilities | | | 633,420 | | | | | | | | | | | | 546,617 | | | | | | | | | |
Total liabilities | | | 48,855,327 | | | | | | | | | | | | 48,446,111 | | | | | | | | | |
| Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred equity | | | 1,583,659 | | | | | | | | | | | | 961,072 | | | | | | | | | |
Common equity | | | 4,932,969 | | | | | | | | | | | | 5,110,430 | | | | | | | | | |
Controlling interest shareholders’ equity | | | 6,516,628 | | | | | | | | | | | | 6,071,502 | | | | | | | | | |
Noncontrolling interests | | | 27,720 | | | | | | | | | | | | 28,751 | | | | | | | | | |
Total shareholders’ equity | | | 6,544,348 | | | | | | | | | | | | 6,100,253 | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 55,399,675 | | | | | | | | | | | $ | 54,546,364 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Spread on average interest-bearing funds | | | | | | | | | | | 3.53 | % | | | | | | | | | | | 3.73 | % |
| Taxable-equivalent net interest income and | | | | | | | | | | | | | | | | | | | | | | | | |
| net yield on interest-earning assets | | | | | | $ | 480,670 | | | | 3.93 | % | | | | | | $ | 514,422 | | | | 4.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
1 Taxable-equivalent rates used where applicable. | | | | | | | | | | | | | | | | | | | | | | | | |
2 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. | | | | | | | | | |
| ZIONS BANCORPORATION AND SUBSIDIARIES | | | | | | | |
| Press Release – Page 22 | | | | | | | | | |
| | | | | | | | | | |
| Capital Ratios | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | | March 31, | | December 31, | | March 31, |
| | | 2009 | | 2008 | | 2008 |
| | | | | | | | | | |
| Tangible common equity ratio | | | 5.26 | % | | | 5.89 | % | | | 5.73 | % |
| Tangible equity ratio | | | 8.28 | % | | | 8.91 | % | | | 6.26 | % |
| | | | | | | | | | | | | |
Risk-based capital ratios1: | | | | | | | | | | | | |
Tier 1 risk-based capital | | | 9.33 | % | | | 10.22 | % | | | 7.64 | % |
Total risk-based capital | | | 13.23 | % | | | 14.32 | % | | | 11.83 | % |
| | | | | | | | | | | | | |
1 Ratios for March 31, 2009 are estimates. | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| GAAP to Non-GAAP Reconciliation | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | |
| | | | | | | Three Months Ended | |
| | | | | | | March 31, 2009 | |
| | | | | | | | | | | Diluted | |
| (In millions, except per share data) | | | | | | Amount | | | EPS1 | |
| | | | | | | | | | | | | |
| Net earnings (loss) applicable to common shareholders | | | $ | (832.2 | ) | | $ | (7.29 | ) |
| Addback: | | | | | | | | | | | | |
Impairment and valuation losses on securities, net of tax | | | | 153.9 | | | | 1.35 | |
Impairment loss on goodwill, net of tax | | | | | | | 633.0 | | | | 5.55 | |
| Income (loss) from core banking operations (non-GAAP) | | | $ | (45.3 | ) | | $ | (0.39 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
1 Per diluted common share after-tax based on the first quarter weighted average shares. | |
The first page of this Press Release presents computations of earnings excluding impairment and valuation losses on securities and an impairment loss on goodwill (hereinafter collectively referred to as ‘impairment losses’). The impairment losses are included in financial results presented in accordance with generally accepted accounting principles (GAAP). Zions believes the exclusion of these impairment losses in expressing earnings, including “Income (loss) from core banking operations,” provides a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. This non-GAAP financial measure is also used by management to assess the performance of Zions’ business, because management does not consider these impairment losses to be relevant to ongoing operating results. Management and the Board of Directors utilize these non-GAAP financial measures for the following purposes:
• Evaluation of bank reporting segment performance
• Presentations of Company performance to investors
Zions believes that presenting these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management and the Board of Directors.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes these impairment losses does not represent the amount that effectively accrues directly to shareholders (i.e., these impairment losses are a reduction in earnings and shareholders’ equity).
