EXHIBIT 99.1
***FOR IMMEDIATE RELEASE***
| For: ZIONS BANCORPORATION | Contact: James Abbott | ||||
| One South Main, 15th Floor | Tel: (801) 524-4787 | ||||
| Salt Lake City, Utah | July 22, 2013 | ||||
| Harris H. Simmons | |||||
| Chairman/Chief Executive Officer | |||||
ZIONS BANCORPORATION REPORTS EARNINGS OF $0.30
PER DILUTED COMMON SHARE FOR SECOND QUARTER 2013
SALT LAKE CITY, July 22, 2013 – Zions Bancorporation (NASDAQ: ZION) (“Zions” or “the Company”) today reported second quarter net earnings applicable to common shareholders of $55.4 million or $0.30 per diluted common share, compared to $88.3 million or $0.48 per diluted share for the first quarter of 2013, and $55.2 million or $0.30 per diluted share for the second quarter of 2012. Net earnings this quarter included after-tax debt extinguishment cost of $24.9 million, or $0.14 per share, which resulted from the redemption of trust preferred securities and a successful tender offer for approximately $258 million of expensive senior debt.
Second Quarter 2013 Highlights
| • | Loans and leases held for investment, excluding FDIC-supported loans, increased $471 million compared to the prior quarter to $37.8 billion at June 30, 2013. Average loans and leases, excluding FDIC-supported loans, increased $419 million. |
| • | Excluding an unusually strong performance from FDIC-supported loans, net interest income was relatively stable compared to the prior quarter, supported by the loan growth previously noted. |
| • | The Company completed several capital and financing actions during the quarter consistent with its objective of reducing its cost of capital and financing. |
| • | Credit quality showed continued improvement, with classified loans and nonperforming lending-related assets declining 6% and 12%, respectively, compared to the prior quarter. This continued improvement resulted in a second quarter negative provision for loan losses of $22.0 million. |
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ZIONS BANCORPORATION
Press Release – Page 2
July 22, 2013
“We are pleased with the continued growth in loans this quarter, and with the progress that we made toward replacing expensive capital and financing issued during the recent crisis with significantly lower cost instruments,” said Harris H. Simmons, chairman and chief executive officer. “We look forward to continued progress on both fronts in the third quarter.”
Loans
Loans and leases held for investment, excluding FDIC-supported loans, increased $471 million on a net basis to $37.8 billion at June 30, 2013, compared to $37.3 billion at March 31, 2013. The increases were predominantly in commercial and industrial, construction, and 1-4 family residential loans, and were widespread geographically. Decreases of $181 million, primarily in commercial owner occupied and term commercial real estate, partially offset increases in other loan categories. Average loans and leases, excluding FDIC-supported loans, increased $419 million to $37.5 billion during the second quarter of 2013, compared to $37.1 billion during the first quarter of 2013. Unfunded lending commitments at June 30, 2013 increased by approximately $606 million from the amount at March 31, 2013.
Deposits
Average total deposits for the second quarter of 2013 increased $0.6 billion, or 1%, to $45.0 billion, compared to $44.4 billion for the first quarter of 2013. This increase was driven mainly by average noninterest-bearing demand deposits, which increased $0.4 billion to $17.6 billion in the second quarter from $17.2 billion in the first quarter. The ratio of average loans to average deposits was 84% at June 30, 2013, compared to 85% at March 31, 2013.
Debt and Shareholders’ Equity
Consistent with its stated objectives of reducing the cost of its noncommon equity capital and debt financing, the Company completed the following actions during the quarter:
| 1. | On May 3, 2013, Zions Capital Trust B redeemed all of its 8.0% outstanding trust preferred securities (previously included in long-term debt), or 11.4 million shares, at 100% of their $25 per share liquidation amount for a total of $285 million. |
| 2. | Following its tender offer announced on May 31, 2013, the Company repurchased on June 18, 2013 approximately $258 million of its $500 million outstanding 7.75% senior notes that were due September 23, 2014. |
In connection with these transactions, the Company recorded $40.3 million pretax of debt extinguishment cost, which consisted of the early tender premium and write-offs of unamortized debt discount and issuance costs.
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ZIONS BANCORPORATION
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July 22, 2013
| 3. | On May 3, 2013, the Company issued $126.2 million of its Series H Fixed-Rate Non-Cumulative Perpetual Preferred Stock. Dividends are payable quarterly at an annual rate of 5.75%. |
| 4. | On May 17, 2013, the Company issued $300.9 million of its Series I Fixed/Floating Rate Non-Cumulative Perpetual Preferred Stock. Dividends are payable semiannually at 5.8% to June 15, 2023, at which time the interest rate resets to three-month LIBOR plus 3.8%. |
Net of commissions and fees, the proceeds from these preferred stock issuances added approximately $419.2 million to shareholders’ equity and Tier 1 capital. The Company expects to use the proceeds of these and earlier issuances to call like amounts of its 9.5% Series C preferred stock in the third quarter of 2013.
| 5. | On June 13, 2013, the Company issued $300 million of 4.5% senior notes due June 13, 2023. Net proceeds were approximately $297.2 million. |
The estimated common equity Tier 1 capital ratio was 10.05% at June 30, 2013, compared to 10.07% at March 31, 2013.
Net Interest Income
Net interest income increased to $431 million for the second quarter of 2013, compared to $418 million for the first quarter of 2013. The net interest margin was unchanged at 3.44% in the second quarter of 2013 compared to the first quarter of 2013. Net interest income was favorably impacted this quarter by approximately $9.4 million (8 bps of the net interest margin) due to better than expected performance of FDIC-supported loans. Continued loan growth mitigated the negative effects on net interest income of loan rates resetting at lower levels. Net interest income also benefited from reduced interest expense due to the retirement of expensive long-term debt.
Noninterest Income
Noninterest income for the second quarter of 2013 was $125.1 million, compared to $121.2 million for the first quarter of 2013. The net increase was primarily due to reduced other-than-temporary impairment (“OTTI”) on collateralized debt obligation (“CDO”) securities compared to the previous quarter.
CDO Investment Securities
During the second quarter of 2013, the Company recognized credit-related OTTI on CDOs of $4.2 million, compared to $10.1 million during the first quarter of 2013. Fixed income securities losses of $1.2 million for the second quarter consisted of $3.1 million of gains from $11.4 million of cash principal payments on CDOs previously written down and $4.3 million of losses on sales of $14.9 million in par amount from six CDO
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ZIONS BANCORPORATION
Press Release – Page 4
July 22, 2013
securities. This compares to first quarter gains of $3.3 million from $19.7 million of cash principal payments on CDOs previously written down and no sales.
The following table provides fair value and other information on the CDOs, stratified into performing tranches without credit impairment and nonperforming tranches at June 30, 2013:
| June 30, 2013 | |||||||||||||||||||||||||||||||||||
Net unrealized losses recognized in AOCI 1 | Weighted average discount rate 2 | % of carrying value to par | |||||||||||||||||||||||||||||||||
| (Amounts in millions) | No. of tranches | Par amount | Amortized cost | Carrying value | June 30, 2013 | March 31, 2013 | Change | ||||||||||||||||||||||||||||
| Performing CDOs | |||||||||||||||||||||||||||||||||||
| Predominantly bank CDOs | 25 | $ | 753 | $ | 677 | $ | 537 | $ | (140 | ) | 5.7 | % | 71 | % | 72 | % | (1 | )% | |||||||||||||||||
| Insurance-only CDOs | 22 | 446 | 442 | 335 | (107 | ) | 7.9 | % | 75 | % | 74 | % | 1 | % | |||||||||||||||||||||
| Other CDOs | 6 | 51 | 40 | 37 | (3 | ) | 9.7 | % | 73 | % | 73 | % | — | % | |||||||||||||||||||||
| Total performing CDOs | 53 | 1,250 | 1,159 | 909 | (250 | ) | 6.7 | % | 73 | % | 73 | % | — | % | |||||||||||||||||||||
Nonperforming CDOs 3 | |||||||||||||||||||||||||||||||||||
| CDOs credit impaired prior to last 12 months | 14 | 272 | 197 | 108 | (89 | ) | 10.1 | % | 40 | % | 32 | % | 8 | % | |||||||||||||||||||||
| CDOs credit impaired during last 12 months | 44 | 849 | 501 | 245 | (256 | ) | 9.5 | % | 29 | % | 24 | % | 5 | % | |||||||||||||||||||||
| Total nonperforming CDOs | 58 | 1,121 | 698 | 353 | (345 | ) | 9.7 | % | 31 | % | 27 | % | 4 | % | |||||||||||||||||||||
| Total CDOs | 111 | $ | 2,371 | $ | 1,857 | $ | 1,262 | $ | (595 | ) | 8.1 | % | 53 | % | 51 | % | 2 | % | |||||||||||||||||
1 Amounts presented are pretax.
2 Margin over related LIBOR index.
3 Defined as either deferring current interest (“PIKing”) or OTTI; the majority are predominantly bank CDOs.
The net unrealized pretax losses in accumulated other comprehensive income (“AOCI”) improved by $56 million to $595 million in the second quarter of 2013 from $651 million in the first quarter of 2013 due to fair value increases. These increases occurred primarily in junior tranches and were driven by rising short-term forward interest rates and improvement in credit spreads.
Noninterest Expense
Noninterest expense for the second quarter of 2013 was $451.7 million compared to $397.3 million for the first quarter of 2013. The increase this quarter was due primarily to the debt extinguishment cost of $40 million. Other changes included the provision associated with increased unfunded lending commitments and increased professional and legal services, offset by reduced salary and employee benefit expense primarily resulting from reduced FICA payments. Approximately $3 million of professional services expenses were consulting expenses related to the Company’s upgrade of its stress testing and capital planning capabilities and processes to meet
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ZIONS BANCORPORATION
Press Release – Page 5
July 22, 2013
Comprehensive Capital Analysis and Review (“CCAR”) standards; we expect similar levels of expense related to these efforts in the third and fourth quarters.
Asset Quality
Net loan and lease charge-offs decreased $12.2 million, or 68%, in the second quarter of 2013 compared to the first quarter of 2013, due to significant recoveries of loans previously charged off. Net charge-offs declined primarily in commercial and industrial, owner occupied, and term commercial real estate loans. Gross loan and lease charge-offs were essentially unchanged at $35.1 million in the second quarter of 2013, compared to $35.5 million in the first quarter of 2013; gross charge-offs declined 52% from the second quarter of 2012.
Nonperforming lending-related assets declined 12% to $602 million at June 30, 2013 from $684 million at March 31, 2013. Nonaccrual loans declined 12% to $521 million at June 30, 2013 from $594 million at March 31, 2013. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 1.57% at June 30, 2013, compared to 1.80% at March 31, 2013.
Classified loans, excluding FDIC-supported loans, decreased approximately 6% to $1.64 billion at June 30, 2013, compared to $1.74 billion at March 31, 2013. Approximately 84% of classified loans were current as to principal and interest for the second quarter of 2013, compared to 80% for the first quarter of 2013, and 73% for the second quarter of 2012.
Other credit quality metrics also improved to a degree generally consistent with those metrics detailed above.
The negative provision for loan losses was $22.0 million for the second quarter of 2013, compared to a negative provision of $29.0 million for the first quarter of 2013. The negative provision continues to be driven by the improvement in credit quality. The allowance for credit losses was $0.92 billion, or 2.40% of loans and leases at June 30, 2013, compared to $0.94 billion, or 2.50% of loans and leases at March 31, 2013.
Other Matters
During the second quarter of 2013, the Company’s Board of Directors approved a significant investment by the Company to replace its core loan and deposit systems with an integrated system offered by TATA Consultancy Services; additionally, the Company plans to upgrade its accounting systems. These initiatives will be completed in phases; as such phases are completed, management expects a significant improvement in operational efficiency, risk management, an improved customer experience as well as reduced operational and financial risk stemming from older legacy systems. The Company is executing in phases to allow for thorough testing of the new systems before retiring the current systems, with care being exercised to minimize or eliminate any adverse customer impact.
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ZIONS BANCORPORATION
Press Release – Page 6
July 22, 2013
These initiatives are in the early stages of development and by their very nature, projections of duration, cost, expected savings, and related items are subject to change and significant variability. Management currently estimates that these initiatives will take between five and seven years to implement. The total cost of these initiatives is currently estimated to be approximately $200 million, with approximately one third of that amount estimated to be capitalized.
Conference Call
Zions will host a conference call to discuss these second quarter results at 5:30 p.m. ET this afternoon (July 22, 2013). Media representatives, analysts and the public are invited to listen to this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 99931233, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. 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 Western markets. Zions operates its banking businesses under local management teams and community identities through approximately 475 offices in 10 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, and received 13 “Excellence” awards by Greenwich Associates for the 2012 survey. 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 press release that are based on other than historical data or that express the Company’s expectations regarding future events or determinations 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 or determinations. These forward-looking statements are not guarantees of future performance or determinations, 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 press 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 securities markets and valuations in structured securities and other assets; changes in governmental policies and programs resulting from general economic and
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ZIONS BANCORPORATION
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July 22, 2013
financial market conditions; changes in interest and funding rates; continuing consolidation in the financial services industry; new private and governmental legal actions or changes in existing private and governmental legal actions; 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 (including The Dodd-Frank Wall Street Reform and Consumer Protection Act); and changes in accounting policies, procedures or determinations 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 Zions Bancorporation’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov).
Except as required by law, 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.
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ZIONS BANCORPORATION
Press Release – Page 8
July 22, 2013
FINANCIAL HIGHLIGHTS
(Unaudited)
| Three Months Ended | |||||||||||||||||||
| (In thousands, except share, per share, and ratio data) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||
| PER COMMON SHARE | |||||||||||||||||||
| Dividends | $ | 0.04 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
Book value per common share 1 | 27.82 | 27.43 | 26.73 | 26.05 | 25.48 | ||||||||||||||
Tangible common equity per common share 1 | 22.09 | 21.67 | 20.95 | 20.24 | 19.65 | ||||||||||||||
| SELECTED RATIOS | |||||||||||||||||||
| Return on average assets | 0.61 | % | 0.83 | % | 0.43 | % | 0.82 | % | 0.70 | % | |||||||||
| Return on average common equity | 4.35 | % | 7.18 | % | 2.91 | % | 5.21 | % | 4.71 | % | |||||||||
| Tangible return on average tangible common equity | 5.73 | % | 9.37 | % | 4.07 | % | 7.02 | % | 6.41 | % | |||||||||
| Net interest margin | 3.44 | % | 3.44 | % | 3.47 | % | 3.58 | % | 3.56 | % | |||||||||
| Capital Ratios | |||||||||||||||||||
Tangible common equity ratio 1 | 7.57 | % | 7.53 | % | 7.09 | % | 7.17 | % | 6.91 | % | |||||||||
Tangible equity ratio 1 | 10.78 | % | 9.97 | % | 9.15 | % | 9.32 | % | 10.35 | % | |||||||||
| Average equity to average assets | 12.11 | % | 11.54 | % | 11.03 | % | 12.22 | % | 12.37 | % | |||||||||
Risk-Based Capital Ratios 1,2 | |||||||||||||||||||
| Common equity Tier 1 capital | 10.05 | % | 10.07 | % | 9.80 | % | 9.86 | % | 9.78 | % | |||||||||
| Tier 1 leverage | 11.76 | % | 11.55 | % | 10.96 | % | 11.05 | % | 12.31 | % | |||||||||
| Tier 1 risk-based capital | 14.32 | % | 14.08 | % | 13.38 | % | 13.49 | % | 15.03 | % | |||||||||
| Total risk-based capital | 15.96 | % | 15.75 | % | 15.05 | % | 15.25 | % | 16.89 | % | |||||||||
| Taxable-equivalent net interest income | $ | 434,579 | $ | 422,252 | $ | 434,252 | $ | 442,595 | $ | 430,967 | |||||||||
| �� | |||||||||||||||||||
| Weighted average common and common-equivalent shares outstanding | 184,061,623 | 183,655,129 | 183,456,109 | 183,382,650 | 183,136,631 | ||||||||||||||
Common shares outstanding 1 | 184,436,656 | 184,246,471 | 184,199,198 | 184,156,402 | 184,117,522 | ||||||||||||||
1 At period end.
2 Ratios for June 30, 2013 are estimates.
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ZIONS BANCORPORATION
Press Release – Page 9
July 22, 2013
CONSOLIDATED BALANCE SHEETS
| (In thousands, except share amounts) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 1,183,097 | $ | 928,817 | $ | 1,841,907 | $ | 1,060,918 | $ | 1,124,673 | |||||||||
| Money market investments: | |||||||||||||||||||
| Interest-bearing deposits | 8,180,010 | 5,785,268 | 5,978,978 | 5,519,463 | 7,887,175 | ||||||||||||||
| Federal funds sold and security resell agreements | 221,799 | 2,340,177 | 2,775,354 | 1,960,294 | 83,529 | ||||||||||||||
| Investment securities: | |||||||||||||||||||
| Held-to-maturity, at adjusted cost (approximate fair value $734,292, $684,668, $674,741, $655,768, and $715,710) | 783,371 | 736,158 | 756,909 | 740,738 | 773,016 | ||||||||||||||
| Available-for-sale, at fair value | 3,193,395 | 3,287,844 | 3,091,310 | 3,127,192 | 3,167,590 | ||||||||||||||
| Trading account, at fair value | 26,385 | 28,301 | 28,290 | 13,963 | 20,539 | ||||||||||||||
| 4,003,151 | 4,052,303 | 3,876,509 | 3,881,893 | 3,961,145 | |||||||||||||||
| Loans held for sale | 164,619 | 161,559 | 251,651 | 220,240 | 139,245 | ||||||||||||||
| Loans, net of unearned income and fees: | |||||||||||||||||||
| Loans and leases | 37,756,010 | 37,284,694 | 37,137,006 | 36,674,288 | 36,319,596 | ||||||||||||||
| FDIC-supported loans | 431,935 | 477,725 | 528,241 | 588,566 | 642,246 | ||||||||||||||
| 38,187,945 | 37,762,419 | 37,665,247 | 37,262,854 | 36,961,842 | |||||||||||||||
| Less allowance for loan losses | 813,912 | 841,781 | 896,087 | 927,068 | 973,443 | ||||||||||||||
| Loans, net of allowance | 37,374,033 | 36,920,638 | 36,769,160 | 36,335,786 | 35,988,399 | ||||||||||||||
| Other noninterest-bearing investments | 852,939 | 855,388 | 855,462 | 874,903 | 867,882 | ||||||||||||||
| Premises and equipment, net | 717,299 | 706,746 | 708,882 | 709,188 | 714,913 | ||||||||||||||
| Goodwill | 1,014,129 | 1,014,129 | 1,014,129 | 1,015,129 | 1,015,129 | ||||||||||||||
| Core deposit and other intangibles | 43,239 | 47,000 | 50,818 | 55,034 | 59,277 | ||||||||||||||
| Other real estate owned | 80,789 | 89,904 | 98,151 | 118,190 | 144,816 | ||||||||||||||
| Other assets | 1,069,436 | 1,208,635 | 1,290,917 | 1,335,963 | 1,420,829 | ||||||||||||||
| $ | 54,904,540 | $ | 54,110,564 | $ | 55,511,918 | $ | 53,087,001 | $ | 53,407,012 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 17,803,950 | $ | 17,311,150 | $ | 18,469,458 | $ | 17,295,911 | $ | 16,498,248 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Savings and money market | 22,887,404 | 22,760,397 | 22,896,624 | 21,970,062 | 21,945,230 | ||||||||||||||
| Time | 2,810,431 | 2,889,903 | 2,962,931 | 3,107,815 | 3,211,942 | ||||||||||||||
| Foreign | 1,514,270 | 1,528,745 | 1,804,060 | 1,398,749 | 1,504,827 | ||||||||||||||
| 45,016,055 | 44,490,195 | 46,133,073 | 43,772,537 | 43,160,247 | |||||||||||||||
| Securities sold, not yet purchased | 15,799 | 1,662 | 26,735 | 21,708 | 104,882 | ||||||||||||||
| Federal funds purchased and security repurchase agreements | 240,816 | 325,107 | 320,478 | 451,214 | 759,591 | ||||||||||||||
| Other short-term borrowings | — | — | 5,409 | 6,608 | 7,621 | ||||||||||||||
| Long-term debt | 2,173,176 | 2,352,569 | 2,337,113 | 2,326,659 | 2,274,571 | ||||||||||||||
| Reserve for unfunded lending commitments | 104,082 | 100,455 | 106,809 | 105,850 | 103,586 | ||||||||||||||
| Other liabilities | 494,280 | 489,923 | 533,660 | 484,170 | 507,151 | ||||||||||||||
| Total liabilities | 48,044,208 | 47,759,911 | 49,463,277 | 47,168,746 | 46,917,649 | ||||||||||||||
| Shareholders’ equity: | |||||||||||||||||||
| Preferred stock, without par value, authorized 4,400,000 shares | 1,728,659 | 1,301,289 | 1,128,302 | 1,123,377 | 1,800,473 | ||||||||||||||
| Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 184,436,656, 184,246,471, 184,199,198, 184,156,402, and 184,117,522 shares | 4,167,828 | 4,170,888 | 4,166,109 | 4,162,001 | 4,157,525 | ||||||||||||||
| Retained earnings | 1,338,401 | 1,290,131 | 1,203,815 | 1,170,477 | 1,110,120 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (374,556 | ) | (406,903 | ) | (446,157 | ) | (534,738 | ) | (576,147 | ) | |||||||||
| Controlling interest shareholders’ equity | 6,860,332 | 6,355,405 | 6,052,069 | 5,921,117 | 6,491,971 | ||||||||||||||
| Noncontrolling interests | — | (4,752 | ) | (3,428 | ) | (2,862 | ) | (2,608 | ) | ||||||||||
| Total shareholders’ equity | 6,860,332 | 6,350,653 | 6,048,641 | 5,918,255 | 6,489,363 | ||||||||||||||
| $ | 54,904,540 | $ | 54,110,564 | $ | 55,511,918 | $ | 53,087,001 | $ | 53,407,012 | ||||||||||
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ZIONS BANCORPORATION
Press Release – Page 10
July 22, 2013
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | |||||||||||||||||||
| (In thousands, except per share amounts) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||
| Interest income: | |||||||||||||||||||
| Interest and fees on loans | $ | 460,308 | $ | 453,433 | $ | 462,002 | $ | 473,162 | $ | 472,926 | |||||||||
| Interest on money market investments | 5,764 | 5,439 | 6,004 | 5,349 | 5,099 | ||||||||||||||
| Interest on securities: | |||||||||||||||||||
| Held-to-maturity | 7,846 | 7,974 | 8,130 | 8,337 | 9,325 | ||||||||||||||
| Available-for-sale | 19,028 | 17,712 | 21,971 | 22,042 | 25,090 | ||||||||||||||
| Trading account | 287 | 190 | 150 | 110 | 148 | ||||||||||||||
| Total interest income | 493,233 | 484,748 | 498,257 | 509,000 | 512,588 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Interest on deposits | 15,143 | 15,642 | 16,861 | 19,049 | 20,823 | ||||||||||||||
| Interest on short-term borrowings | 78 | 92 | 178 | 193 | 256 | ||||||||||||||
| Interest on long-term debt | 47,355 | 50,899 | 51,261 | 51,597 | 65,165 | ||||||||||||||
| Total interest expense | 62,576 | 66,633 | 68,300 | 70,839 | 86,244 | ||||||||||||||
| Net interest income | 430,657 | 418,115 | 429,957 | 438,161 | 426,344 | ||||||||||||||
| Provision for loan losses | (21,990 | ) | (29,035 | ) | (10,401 | ) | (1,889 | ) | 10,853 | ||||||||||
| Net interest income after provision for loan losses | 452,647 | 447,150 | 440,358 | 440,050 | 415,491 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Service charges and fees on deposit accounts | 44,329 | 43,580 | 44,492 | 44,951 | 43,426 | ||||||||||||||
| Other service charges, commissions and fees | 45,888 | 42,731 | 46,497 | 44,679 | 44,197 | ||||||||||||||
| Trust and wealth management income | 7,732 | 6,994 | 7,450 | 6,521 | 8,057 | ||||||||||||||
| Capital markets and foreign exchange | 6,740 | 7,486 | 7,708 | 6,026 | 7,342 | ||||||||||||||
| Dividends and other investment income | 11,339 | 12,724 | 13,117 | 11,686 | 21,542 | ||||||||||||||
| Loan sales and servicing income | 10,723 | 10,951 | 10,595 | 10,695 | 10,287 | ||||||||||||||
| Fair value and nonhedge derivative loss | (2,957 | ) | (5,445 | ) | (4,778 | ) | (5,820 | ) | (6,784 | ) | |||||||||
| Equity securities gains (losses), net | 2,209 | 2,832 | (682 | ) | 2,683 | 107 | |||||||||||||
| Fixed income securities gains (losses), net | (1,153 | ) | 3,299 | 10,259 | 3,046 | 5,519 | |||||||||||||
| Impairment losses on investment securities: | |||||||||||||||||||
| Impairment losses on investment securities | (4,910 | ) | (31,493 | ) | (120,082 | ) | (3,876 | ) | (24,026 | ) | |||||||||
| Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income) | 693 | 21,376 | 36,274 | 1,140 | 16,718 | ||||||||||||||
| Net impairment losses on investment securities | (4,217 | ) | (10,117 | ) | (83,808 | ) | (2,736 | ) | (7,308 | ) | |||||||||
| Other | 4,515 | 6,184 | 3,309 | 3,495 | 2,280 | ||||||||||||||
| Total noninterest income | 125,148 | 121,219 | 54,159 | 125,226 | 128,665 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||
| Salaries and employee benefits | 227,328 | 229,789 | 220,039 | 220,223 | 220,765 | ||||||||||||||
| Occupancy, net | 27,951 | 27,389 | 28,226 | 28,601 | 28,169 | ||||||||||||||
| Equipment, software and furniture | 26,545 | 26,074 | 27,774 | 27,122 | 27,302 | ||||||||||||||
| Other real estate expense | 1,590 | 1,977 | 5,266 | 207 | 6,440 | ||||||||||||||
| Credit related expense | 9,397 | 10,482 | 11,302 | 13,316 | 12,415 | ||||||||||||||
| Provision for unfunded lending commitments | 3,627 | (6,354 | ) | 959 | 2,264 | 4,868 | |||||||||||||
| Professional and legal services | 17,149 | 10,471 | 15,717 | 12,749 | 12,947 | ||||||||||||||
| Advertising | 5,807 | 5,893 | 5,969 | 7,326 | 6,618 | ||||||||||||||
| FDIC premiums | 10,124 | 9,711 | 10,760 | 11,278 | 10,444 | ||||||||||||||
| Amortization of core deposit and other intangibles | 3,762 | 3,819 | 4,216 | 4,241 | 4,262 | ||||||||||||||
| Debt extinguishment cost | 40,282 | — | — | — | — | ||||||||||||||
| Other | 78,116 | 78,097 | 76,786 | 67,648 | 67,426 | ||||||||||||||
| Total noninterest expense | 451,678 | 397,348 | 407,014 | 394,975 | 401,656 | ||||||||||||||
| Income before income taxes | 126,117 | 171,021 | 87,503 | 170,301 | 142,500 | ||||||||||||||
| Income taxes | 43,091 | 60,634 | 29,817 | 60,704 | 51,036 | ||||||||||||||
| Net income | 83,026 | 110,387 | 57,686 | 109,597 | 91,464 | ||||||||||||||
| Net loss applicable to noncontrolling interests | — | (336 | ) | (566 | ) | (254 | ) | (273 | ) | ||||||||||
| Net income applicable to controlling interest | 83,026 | 110,723 | 58,252 | 109,851 | 91,737 | ||||||||||||||
| Preferred stock dividends | (27,641 | ) | (22,399 | ) | (22,647 | ) | (47,529 | ) | (36,522 | ) | |||||||||
| Net earnings applicable to common shareholders | $ | 55,385 | $ | 88,324 | $ | 35,605 | $ | 62,322 | $ | 55,215 | |||||||||
| Weighted average common shares outstanding during the period: | |||||||||||||||||||
| Basic shares | 183,647 | 183.396 | 183,300 | 183,237 | 182,985 | ||||||||||||||
| Diluted shares | 184,062 | 183,655 | 183,456 | 183,383 | 183,137 | ||||||||||||||
| Net earnings per common share: | |||||||||||||||||||
| Basic | $ | 0.30 | $ | 0.48 | $ | 0.19 | $ | 0.34 | $ | 0.30 | |||||||||
| Diluted | 0.30 | 0.48 | 0.19 | 0.34 | 0.30 | ||||||||||||||
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ZIONS BANCORPORATION
Press Release – Page 11
July 22, 2013
Loan Balances by Portfolio Type
(Unaudited)
| (In millions) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 11,899 | $ | 11,504 | $ | 11,257 | $ | 10,840 | $ | 10,471 | |||||||||||||||||||
| Leasing | 388 | 390 | 423 | 405 | 406 | ||||||||||||||||||||||||
| Owner occupied | 7,394 | 7,501 | 7,589 | 7,669 | 7,811 | ||||||||||||||||||||||||
| Municipal | 454 | 484 | 494 | 469 | 477 | ||||||||||||||||||||||||
| Total commercial | 20,135 | 19,879 | 19,763 | 19,383 | 19,165 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Construction and land development | 2,191 | 2,039 | 1,939 | 1,956 | 2,099 | ||||||||||||||||||||||||
| Term | 7,971 | 8,012 | 8,063 | 8,140 | 8,012 | ||||||||||||||||||||||||
| Total commercial real estate | 10,162 | 10,051 | 10,002 | 10,096 | 10,111 | ||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Home equity credit line | 2,124 | 2,125 | 2,178 | 2,175 | 2,181 | ||||||||||||||||||||||||
| 1-4 family residential | 4,486 | 4,408 | 4,350 | 4,181 | 4,019 | ||||||||||||||||||||||||
| Construction and other consumer real estate | 322 | 320 | 321 | 320 | 328 | ||||||||||||||||||||||||
| Bankcard and other revolving plans | 315 | 293 | 307 | 295 | 284 | ||||||||||||||||||||||||
| Other | 212 | 208 | 216 | 224 | 232 | ||||||||||||||||||||||||
| Total consumer | 7,459 | 7,354 | 7,372 | 7,195 | 7,044 | ||||||||||||||||||||||||
FDIC-supported loans 1 | 432 | 478 | 528 | 589 | 642 | ||||||||||||||||||||||||
| Total loans | $ | 38,188 | $ | 37,762 | $ | 37,665 | $ | 37,263 | $ | 36,962 | |||||||||||||||||||
1 FDIC-supported loans represent loans acquired from the FDIC subject to loss sharing agreements.
FDIC-Supported Loans – Effect of Higher Accretion
and Impact on FDIC Indemnification Asset
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| (In thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||||||||||||
| Balance sheet: | |||||||||||||||||||||||||||||
| Change in assets from reestimation of cash flows – increase (decrease): | |||||||||||||||||||||||||||||
| FDIC-supported loans | $ | 28,424 | $ | 18,977 | $ | 12,970 | $ | 17,594 | $ | 14,761 | |||||||||||||||||||
| FDIC indemnification asset (included in other assets) | (21,845 | ) | (20,288 | ) | (10,610 | ) | (14,401 | ) | (11,233 | ) | |||||||||||||||||||
| Balance at end of period: | |||||||||||||||||||||||||||||
| FDIC-supported loans | 431,935 | 477,725 | 528,241 | 588,566 | 642,246 | ||||||||||||||||||||||||
| FDIC indemnification asset (included in other assets) | 51,297 | 71,100 | 90,074 | 100,004 | 117,167 | ||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| (In thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||||||||||||
| Statement of income: | |||||||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 28,424 | $ | 18,977 | $ | 12,970 | $ | 17,594 | $ | 14,761 | |||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Other noninterest expense | 21,845 | 20,288 | 10,610 | 14,401 | 11,233 | ||||||||||||||||||||||||
| Net increase (decrease) in pretax income | $ | 6,579 | $ | (1,311 | ) | $ | 2,360 | $ | 3,193 | $ | 3,528 | ||||||||||||||||||
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ZIONS BANCORPORATION
Press Release – Page 12
July 22, 2013
Nonperforming Lending-Related Assets
(Unaudited)
| (Amounts in thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||
| Nonaccrual loans | $ | 515,708 | $ | 589,221 | $ | 630,810 | $ | 699,952 | $ | 771,510 | |||||||||
| Other real estate owned | 70,031 | 80,701 | 90,269 | 106,356 | 125,142 | ||||||||||||||
| Nonperforming lending-related assets, excluding FDIC-supported assets | 585,739 | 669,922 | 721,079 | 806,308 | 896,652 | ||||||||||||||
| FDIC-supported nonaccrual loans | 5,256 | 4,927 | 17,343 | 19,454 | 21,980 | ||||||||||||||
| FDIC-supported other real estate owned | 10,758 | 9,203 | 7,882 | 11,834 | 19,674 | ||||||||||||||
| FDIC-supported nonperforming assets | 16,014 | 14,130 | 25,225 | 31,288 | 41,654 | ||||||||||||||
| Total nonperforming lending-related assets | $ | 601,753 | $ | 684,052 | $ | 746,304 | $ | 837,596 | $ | 938,306 | |||||||||
Ratio of nonperforming lending-related assets to loans 1 and leases and other real estate owned | 1.57 | % | 1.80 | % | 1.96 | % | 2.23 | % | 2.52 | % | |||||||||
| Accruing loans past due 90 days or more, excluding FDIC-supported loans | $ | 10,685 | $ | 12,708 | $ | 9,730 | $ | 14,508 | $ | 29,460 | |||||||||
| Accruing FDIC-supported loans past due 90 days or more | 33,410 | 47,208 | 52,033 | 60,913 | 70,453 | ||||||||||||||
Ratio of accruing loans past due 90 days or more to loans 1 and leases | 0.11 | % | 0.16 | % | 0.16 | % | 0.20 | % | 0.27 | % | |||||||||
| Nonaccrual loans and accruing loans past due 90 days or more | $ | 565,059 | $ | 654,064 | $ | 709,916 | $ | 794,827 | $ | 893,403 | |||||||||
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans 1 and leases | 1.47 | % | 1.72 | % | 1.87 | % | 2.12 | % | 2.41 | % | |||||||||
| Accruing loans past due 30 - 89 days, excluding FDIC-supported loans | $ | 103,075 | $ | 155,896 | $ | 185,422 | $ | 143,539 | $ | 142,501 | |||||||||
| Accruing FDIC-supported loans past due 30 - 89 days | 6,522 | 11,571 | 11,924 | 15,462 | 15,519 | ||||||||||||||
| Restructured loans included in nonaccrual loans | 162,496 | 193,975 | 215,476 | 207,088 | 227,568 | ||||||||||||||
| Restructured loans on accrual | 385,428 | 416,181 | 407,026 | 421,055 | 393,360 | ||||||||||||||
| Classified loans, excluding FDIC-supported loans | 1,639,206 | 1,737,178 | 1,767,460 | 1,810,099 | 1,880,932 | ||||||||||||||
1 Includes loans held for sale.
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ZIONS BANCORPORATION
Press Release – Page 13
July 22, 2013
Allowance for Credit Losses
(Unaudited)
| Three Months Ended | |||||||||||||||||||
| (Amounts in thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||
| Allowance for Loan Losses | |||||||||||||||||||
| Balance at beginning of period | $ | 841,781 | $ | 896,087 | $ | 927,068 | $ | 973,443 | $ | 1,011,786 | |||||||||
| Add: | |||||||||||||||||||
| Provision for losses | (21,990 | ) | (29,035 | ) | (10,401 | ) | (1,889 | ) | 10,853 | ||||||||||
| Adjustment for FDIC-supported loans | (209 | ) | (7,429 | ) | (1,721 | ) | (5,908 | ) | (5,856 | ) | |||||||||
| Deduct: | |||||||||||||||||||
| Gross loan and lease charge-offs | (35,099 | ) | (35,467 | ) | (54,709 | ) | (58,781 | ) | (73,685 | ) | |||||||||
| Recoveries | 29,429 | 17,625 | 35,850 | 20,203 | 30,345 | ||||||||||||||
| Net loan and lease charge-offs | (5,670 | ) | (17,842 | ) | (18,859 | ) | (38,578 | ) | (43,340 | ) | |||||||||
| Balance at end of period | $ | 813,912 | $ | 841,781 | $ | 896,087 | $ | 927,068 | $ | 973,443 | |||||||||
| Ratio of allowance for loan losses to loans and leases, at period end | 2.13 | % | 2.23 | % | 2.38 | % | 2.49 | % | 2.63 | % | |||||||||
| Ratio of allowance for loan losses to nonperforming loans, at period end | 156.23 | % | 141.68 | % | 138.25 | % | 128.87 | % | 122.68 | % | |||||||||
| Annualized ratio of net loan and lease charge-offs to average loans | 0.06 | % | 0.19 | % | 0.20 | % | 0.41 | % | 0.47 | % | |||||||||
| Reserve for Unfunded Lending Commitments | |||||||||||||||||||
| Balance at beginning of period | $ | 100,455 | $ | 106,809 | $ | 105,850 | $ | 103,586 | $ | 98,718 | |||||||||
| Provision charged (credited) to earnings | 3,627 | (6,354 | ) | 959 | 2,264 | 4,868 | |||||||||||||
| Balance at end of period | $ | 104,082 | $ | 100,455 | $ | 106,809 | $ | 105,850 | $ | 103,586 | |||||||||
| Total Allowance for Credit Losses | |||||||||||||||||||
| Allowance for loan losses | $ | 813,912 | $ | 841,781 | $ | 896,087 | $ | 927,068 | $ | 973,443 | |||||||||
| Reserve for unfunded lending commitments | 104,082 | 100,455 | 106,809 | 105,850 | 103,586 | ||||||||||||||
| Total allowance for credit losses | $ | 917,994 | $ | 942,236 | $ | 1,002,896 | $ | 1,032,918 | $ | 1,077,029 | |||||||||
| Ratio of total allowance for credit losses to loans and leases outstanding, at period end | 2.40 | % | 2.50 | % | 2.66 | % | 2.77 | % | 2.91 | % | |||||||||
- more -
ZIONS BANCORPORATION
Press Release – Page 14
July 22, 2013
Nonaccrual Loans by Portfolio Type
(Excluding FDIC-Supported Loans)
(Unaudited)
| (In millions) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 94 | $ | 100 | $ | 91 | $ | 103 | $ | 133 | |||||||||||||||||||
| Leasing | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
| Owner occupied | 186 | 195 | 206 | 223 | 240 | ||||||||||||||||||||||||
| Municipal | 9 | 9 | 9 | 6 | — | ||||||||||||||||||||||||
| Total commercial | 290 | 305 | 307 | 333 | 374 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Construction and land development | 70 | 93 | 108 | 125 | 115 | ||||||||||||||||||||||||
| Term | 71 | 102 | 125 | 155 | 182 | ||||||||||||||||||||||||
| Total commercial real estate | 141 | 195 | 233 | 280 | 297 | ||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Home equity credit line | 11 | 12 | 14 | 12 | 14 | ||||||||||||||||||||||||
| 1-4 family residential | 66 | 71 | 70 | 66 | 76 | ||||||||||||||||||||||||
| Construction and other consumer real estate | 5 | 4 | 5 | 6 | 8 | ||||||||||||||||||||||||
| Bankcard and other revolving plans | 2 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
| Other | 1 | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||
| Total consumer | 85 | 89 | 91 | 87 | 101 | ||||||||||||||||||||||||
| Total nonaccrual loans | $ | 516 | $ | 589 | $ | 631 | $ | 700 | $ | 772 | |||||||||||||||||||
Net Charge-Offs by Portfolio Type
(Unaudited)
| (In millions) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 2 | $ | 5 | $ | (1 | ) | $ | 3 | $ | 9 | ||||||||||||||||||
| Leasing | — | — | 2 | — | — | ||||||||||||||||||||||||
| Owner occupied | 3 | 5 | 7 | 10 | 10 | ||||||||||||||||||||||||
| Municipal | — | — | — | — | — | ||||||||||||||||||||||||
| Total commercial | 5 | 10 | 8 | 13 | 19 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Construction and land development | (3 | ) | (3 | ) | (7 | ) | — | (2 | ) | ||||||||||||||||||||
| Term | (2 | ) | 5 | 7 | 16 | 13 | |||||||||||||||||||||||
| Total commercial real estate | (5 | ) | 2 | — | 16 | 11 | |||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Home equity credit line | 2 | 2 | 6 | 2 | 6 | ||||||||||||||||||||||||
| 1-4 family residential | 3 | 3 | 4 | 4 | 5 | ||||||||||||||||||||||||
| Construction and other consumer real estate | 1 | (1 | ) | — | 1 | — | |||||||||||||||||||||||
| Bankcard and other revolving plans | — | 2 | 1 | 2 | 1 | ||||||||||||||||||||||||
| Other | — | — | — | — | 1 | ||||||||||||||||||||||||
| Total consumer loans | 6 | 6 | 11 | 9 | 13 | ||||||||||||||||||||||||
| Total net charge-offs | $ | 6 | $ | 18 | $ | 19 | $ | 38 | $ | 43 | |||||||||||||||||||
- more -
ZIONS BANCORPORATION
Press Release – Page 15
July 22, 2013
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||||
| (In thousands) | Average balance | Average rate | Average balance | Average rate | Average balance | Average rate | ||||||||||||||
| ASSETS | ||||||||||||||||||||
| Money market investments | $ | 8,652,403 | 0.27 | % | $ | 8,111,798 | 0.27 | % | $ | 8,652,394 | 0.28 | % | ||||||||
| Securities: | ||||||||||||||||||||
| Held-to-maturity | 740,839 | 5.07 | % | 756,739 | 5.11 | % | 740,297 | 5.29 | % | |||||||||||
| Available-for-sale | 3,090,910 | 2.50 | % | 3,035,592 | 2.41 | % | 2,958,311 | 3.01 | % | |||||||||||
| Trading account | 36,296 | 3.17 | % | 22,620 | 3.41 | % | 21,793 | 2.74 | % | |||||||||||
| Total securities | 3,868,045 | 3.00 | % | 3,814,951 | 2.95 | % | 3,720,401 | 3.46 | % | |||||||||||
| Loans held for sale | 141,313 | 3.47 | % | 204,597 | 3.50 | % | 231,710 | 3.22 | % | |||||||||||
Loans 1: | ||||||||||||||||||||
| Loans and leases | 37,518,549 | 4.55 | % | 37,099,182 | 4.67 | % | 36,685,969 | 4.78 | % | |||||||||||
| FDIC-supported loans | 452,849 | 31.22 | % | 498,654 | 21.43 | % | 559,643 | 15.12 | % | |||||||||||
| Total loans | 37,971,398 | 4.87 | % | 37,597,836 | 4.90 | % | 37,245,612 | 4.94 | % | |||||||||||
| Total interest-earning assets | 50,633,159 | 3.94 | % | 49,729,182 | 3.99 | % | 49,850,117 | 4.01 | % | |||||||||||
| Cash and due from banks | 1,000,221 | 1,063,314 | 1,259,311 | |||||||||||||||||
| Allowance for loan losses | (837,651 | ) | (884,363 | ) | (925,943 | ) | ||||||||||||||
| Goodwill | 1,014,129 | 1,014,129 | 1,014,986 | |||||||||||||||||
| Core deposit and other intangibles | 45,262 | 49,069 | 53,083 | |||||||||||||||||
| Other assets | 2,808,640 | 2,889,354 | 3,014,503 | |||||||||||||||||
| Total assets | $ | 54,663,760 | $ | 53,860,685 | $ | 54,266,057 | ||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Savings and money market | $ | 22,871,040 | 0.18 | % | $ | 22,735,258 | 0.19 | % | $ | 22,356,014 | 0.20 | % | ||||||||
| Time | 2,842,322 | 0.59 | % | 2,935,316 | 0.62 | % | 3,038,934 | 0.64 | % | |||||||||||
| Foreign | 1,642,381 | 0.20 | % | 1,528,665 | 0.20 | % | 1,597,513 | 0.23 | % | |||||||||||
| Total interest-bearing deposits | 27,355,743 | 0.22 | % | 27,199,239 | 0.23 | % | 26,992,461 | 0.25 | % | |||||||||||
| Borrowed funds: | ||||||||||||||||||||
| Securities sold, not yet purchased | 4,076 | — | % | 494 | — | % | 3,320 | — | % | |||||||||||
| Federal funds purchased and security repurchase agreements | 283,690 | 0.11 | % | 289,918 | 0.10 | % | 429,653 | 0.14 | % | |||||||||||
| Other short-term borrowings | — | — | % | 3,837 | 2.01 | % | 6,293 | 1.71 | % | |||||||||||
| Long-term debt | 2,214,215 | 8.58 | % | 2,331,314 | 8.85 | % | 2,318,478 | 8.80 | % | |||||||||||
| Total borrowed funds | 2,501,981 | 7.60 | % | 2,625,563 | 7.88 | % | 2,757,744 | 7.42 | % | |||||||||||
| Total interest-bearing liabilities | 29,857,724 | 0.84 | % | 29,824,802 | 0.91 | % | 29,750,205 | 0.91 | % | |||||||||||
| Noninterest-bearing deposits | 17,629,219 | 17,211,214 | 17,918,890 | |||||||||||||||||
| Other liabilities | 559,219 | 608,206 | 610,316 | |||||||||||||||||
| Total liabilities | 48,046,162 | 47,644,222 | 48,279,411 | |||||||||||||||||
| Shareholders’ equity: | ||||||||||||||||||||
| Preferred equity | 1,518,823 | 1,229,708 | 1,126,566 | |||||||||||||||||
| Common equity | 5,102,082 | 4,990,317 | 4,862,972 | |||||||||||||||||
| Controlling interest shareholders’ equity | 6,620,905 | 6,220,025 | 5,989,538 | |||||||||||||||||
| Noncontrolling interests | (3,307 | ) | (3,562 | ) | (2,892 | ) | ||||||||||||||
| Total shareholders’ equity | 6,617,598 | 6,216,463 | 5,986,646 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 54,663,760 | $ | 53,860,685 | $ | 54,266,057 | ||||||||||||||
| Spread on average interest-bearing funds | 3.10 | % | 3.08 | % | 3.10 | % | ||||||||||||||
| Net yield on interest-earning assets | 3.44 | % | 3.44 | % | 3.47 | % | ||||||||||||||
1 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
- more -
ZIONS BANCORPORATION
Press Release – Page 16
July 22, 2013
GAAP to Non-GAAP Reconciliation
(Unaudited)
| Tangible Return on Average Tangible Common Equity | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| (Amounts in thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||||||
| Net earnings applicable to common shareholders (GAAP) | $ | 55,385 | $ | 88,324 | $ | 35,605 | $ | 62,322 | $ | 55,215 | |||||||||
| Adjustments, net of tax: | |||||||||||||||||||
| Impairment loss on goodwill | — | — | 583 | — | — | ||||||||||||||
| Amortization of core deposit and other intangibles | 2,391 | 2,425 | 2,677 | 2,692 | 2,704 | ||||||||||||||
| Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a) | $ | 57,776 | $ | 90,749 | $ | 38,865 | $ | 65,014 | $ | 57,919 | |||||||||
| Average common equity (GAAP) | $ | 5,102,082 | $ | 4,990,317 | $ | 4,862,972 | $ | 4,758,858 | $ | 4,713,318 | |||||||||
| Average goodwill | (1,014,129 | ) | (1,014,129 | ) | (1,014,986 | ) | (1,015,129 | ) | (1,015,129 | ) | |||||||||
| Average core deposit and other intangibles | (45,262 | ) | (49,069 | ) | (53,083 | ) | (57,345 | ) | (61,511 | ) | |||||||||
| Average tangible common equity (non-GAAP) (b) | $ | 4,042,691 | $ | 3,927,119 | $ | 3,794,903 | $ | 3,686,384 | $ | 3,636,678 | |||||||||
| Number of days in quarter (c) | 91 | 90 | 92 | 92 | 91 | ||||||||||||||
| Number of days in year (d) | 365 | 365 | 366 | 366 | 366 | ||||||||||||||
| Tangible return on average tangible common equity (non-GAAP) (a/b/c*d) | 5.73 | % | 9.37 | % | 4.07 | % | 7.02 | % | 6.41 | % | |||||||||
This press release presents the non-GAAP financial measure previously shown. The adjustments to reconcile from the applicable GAAP financial measure to the non-GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results.
The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measure provides a meaningful base for period-to-period and company-to-company comparisons, which will assist investors and analysts in analyzing the operating results of the Company and in predicting future performance. This non-GAAP financial measure is used by management and the Board of Directors to assess the performance of the Company’s business for evaluating bank reporting segment performance, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting this non-GAAP financial measure will permit investors and analysts 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 non-GAAP financial measures are frequently used by stakeholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
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