***FOR IMMEDIATE RELEASE***
|
| | | | | |
| For: ZIONS BANCORPORATION | | | | | Contact: James Abbott |
| One South Main, 15th Floor | | | | | Tel: (801) 844-7637 |
| Salt Lake City, Utah | | | | | July 20, 2015 |
| Harris H. Simmons | | | | | |
| Chairman/Chief Executive Officer | | | | | |
ZIONS BANCORPORATION REPORTS SECOND QUARTER 2015 RESULTS
SALT LAKE CITY, July 20, 2015 – Zions Bancorporation (NASDAQ: ZION) (“Zions” or “the Company”) today reported second quarter net income of $14.0 million and a net loss applicable to common shareholders of $(1.1) million, or $(0.01) per diluted common share. During the second quarter, the Company sold the remaining portfolio of its collateralized debt obligation (“CDO”) securities and recognized a one-time pretax loss of approximately $137 million, or $0.42 after-tax per diluted common share. Shareholders’ equity was not adversely affected as the loss had been previously recognized in accumulated other comprehensive income (“AOCI”). Excluding the loss, net earnings applicable to common shareholders was $83.4 million, or $0.41 per diluted common share, for the second quarter of 2015, compared to $75.3 million, or $0.37 per diluted common share, for the first quarter of 2015.
Second Quarter 2015 Highlights
| |
| • | Credit quality metrics were generally stable with a decrease in nonaccruing loans and a slight increase in classified loans from the prior quarter. Annualized net charge-offs were 0.11% of average loans. The overall effect contributed to a $0.6 million provision for loan losses. |
| |
| • | Total noninterest expense was $404 million during the second quarter and $802 million year-to date. Certain one-time and seasonal expenses during the second quarter of 2015 were partially offset by other expense credits, including insurance recoveries of $9.2 million. The Company is maintaining its commitment to hold noninterest expenses below $1.6 billion in 2015 and 2016. |
| |
| • | Loan balances, excluding energy-related loans, increased $128 million during the second quarter compared to a $25 million increase during the first quarter calculated on the same basis. Energy-related loans declined $284 million linked quarter. Overall, net loans and leases declined $156 million during the second quarter. |
ZIONS BANCORPORATION
Press Release – Page 2
July 20, 2015
| |
| • | Net interest income increased slightly from the prior quarter; however, the net interest margin declined 4 basis points to 3.18%, primarily driven by an increased concentration of cash and securities. Loan yields were generally stable with the prior quarter. |
| |
| • | Noninterest income, excluding securities gains and losses, increased due to continued success in sales of treasury management products and credit card fee growth. |
| |
| • | Total deposits increased at an annualized rate of 6.8% during the second quarter, led by strength in noninterest-bearing deposits. |
“We are pleased to have completed the disposition of the remaining collateralized debt obligations in our securities portfolio during the second quarter, a move which both reduces risk and will allow us to deploy the cash received in more productive and profitable earning assets,” said Harris H. Simmons, chairman and chief executive officer. “We are also encouraged by the Company’s continued low credit costs. Although the effects of the energy price decline are not yet fully manifest, we are encouraged with the results of the spring borrowing base redetermination process, the strength of the capital markets in recapitalizing a substantial number of energy companies, and other factors – including strong portfolio management by our energy lending team – which contributed to linked-quarter stability in nonaccrual energy loans.”
Mr. Simmons continued, “Total loan growth was the major soft spot of the quarter, although much of that was primarily attributable to higher prepayment rates within the energy sector.” Mr. Simmons concluded, “Finally, I am very appreciative of the great work being performed by so many of my colleagues throughout Zions Bancorporation with respect to the various initiatives we’ve undertaken to simplify our organizational structure and increase our productivity. We are fully committed to achieving the goals we announced during the quarter.”
Loans
Net loans and leases held for investment decreased $156 million, or 0.4%, to $40.0 billion at June 30, 2015 from $40.2 billion at March 31, 2015. The decrease was primarily attributable to commercial and industrial loans, including a quarterly decline of $284 million in energy-related loans primarily at Amegy Bank. This decrease was consistent with expectations of reduced loan volume within the energy industry and was a contributing factor in maintaining relatively stable classified loan balances. Excluding energy-related loans, net loans and leases increased $128 million during the quarter, compared to $25 million during the prior quarter. The Company’s exposure to commercial real estate declined slightly from the prior quarter due to elevated paydowns and payoffs.
ZIONS BANCORPORATION
Press Release – Page 3
July 20, 2015
Average loans and leases held for investment of $40.1 billion during the second quarter of 2015 decreased slightly from $40.2 billion during the first quarter. Unfunded lending commitments were $17.6 billion at June 30, 2015, compared to $17.5 billion at March 31, 2015.
Energy-Related Exposure
The following table presents the distribution of energy-related loans by customer market segment:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| ENERGY-RELATED EXPOSURE* | | | | | % of total loans | | | | | | % of total loans | | | | | | % of total loans |
| (In millions) | June 30,
2015 | | | March 31, 2015 | | | December 31, 2014 | |
| | | | | | | | | | | | | | | | | | |
| Loans and leases | | | | | | | | | | | | | | | | | |
| Oil and gas-related | | $ | 2,883 |
| | | 7.2 | % | | | $ | 3,157 |
| | | 7.9 | % | | | $ | 3,073 |
| | | 7.7 | % |
| Alternative energy | | 222 |
| | | | | | 232 |
| | | | | | 225 |
| | | |
| Total loans and leases | | 3,105 |
| | | | | | 3,389 |
| | | | | | 3,298 |
| | | |
| Unfunded lending commitments | | 2,403 |
| | | | | | 2,451 |
| | | | | | 2,731 |
| | | |
| Total credit exposure | | $ | 5,508 |
| | | | | | $ | 5,840 |
| | | | | | $ | 6,029 |
| | | |
| | | | | | | | | | | | | | | | | | |
| Private equity investments | | $ | 13 |
| | | | | | $ | 20 |
| | | | | | $ | 21 |
| | | |
|
| | | | | | | | | | | | | | | | | |
| Distribution of oil and gas-related balances | | | | | | | | | | | | | | |
| Upstream – exploration and production | | 33 | % | | | | | | 34 | % | | | | | | 34 | % |
| Midstream – marketing and transportation | | 20 | % | | | | | | 21 | % | | | | | | 19 | % |
| Downstream – refining | | 5 | % | | | | | | 4 | % | | | | | | 4 | % |
| Other non-services | | 3 | % | | | | | | 2 | % | | | | | | 2 | % |
| Oilfield services | | 30 | % | | | | | | 30 | % | | | | | | 31 | % |
| Energy service manufacturing | | 9 | % | | | | | | 9 | % | | | | | | 10 | % |
| Total loans and leases | | 100 | % | | | | | | 100 | % | | | | | | 100 | % |
| |
| * | Because many borrowers operate in multiple businesses, judgment has been applied in characterizing a borrower as energy-related, including a particular segment of energy-related activity, e.g., upstream or downstream. |
The Company’s overall balance of oil and gas-related loans decreased 9% to $2.9 billion. Exploration and production balances declined approximately 12%, and energy services loan balances declined approximately 8% from the prior quarter.
As a result of the second quarter spring redetermination of exploration and production energy loan borrowing bases, most borrowing bases declined, although some remained unchanged or expanded. The Company’s assessment of credit quality of the energy loan portfolio was consistent with the first quarter. The results of the shared national credit exam are reflected in the Company’s financial statements.
At June 30, 2015, approximately $66 million, or 2.1%, of the energy-related loan balances were nonaccruing, compared to $65 million, or 1.9%, at March 31, 2015. Approximately 87% of energy-related nonaccruing loans were current at June 30, 2015, compared to 93% at March 31, 2015. Classified energy-related loans were $325 million at June 30, 2015, compared to $295 million at March 31, 2015.
ZIONS BANCORPORATION
Press Release – Page 4
July 20, 2015
Asset Quality
Credit quality was generally stable when comparing the second quarter to the first. Nonperforming assets declined to $386 million at June 30, 2015 from $399 million at March 31, 2015. Classified loans increased slightly to $1.29 billion at June 30, 2015 from $1.27 billion at March 31, 2015. The ratio of nonperforming assets to loans and leases and other real estate owned declined to 0.96% at June 30, 2015, compared to 0.99% at March 31, 2015. Net charge-offs were $11 million in the second quarter, or an annualized 0.11% of average loans. The allowance for credit losses declined $13 million to $689 million, which was 1.72% of loans and leases at June 30, 2015, compared to $702 million, or 1.75% of loans and leases at March 31, 2015.
Deposits
Total deposits increased $814 million to $48.9 billion at June 30, 2015, compared to $48.1 billion at March 31, 2015, resulting primarily from increased noninterest-bearing deposits. Average total deposits increased $641 million to $48.1 billion for the second quarter of 2015, compared to $47.5 billion for the first quarter of 2015.
Shareholders’ Equity
Tangible book value per common share improved to $26.95 at June 30, 2015, compared to $26.64 at March 31, 2015. Compared to June 30, 2014, tangible book value per common share improved by approximately 7.2%.
The estimated Basel III common equity tier 1 (“CET1”) capital ratio on a 2015 phase-in basis was 11.91% at June 30, 2015. As was previously announced, due to the sale of the remainder of its CDO portfolio, the Company experienced a reduction of its risk-weighted assets. However, regulatory agencies recently published a frequently-asked question document regarding the risk weighting of certain construction and land development loans. As a result of its review of the FAQ, the Company increased the risk-weighting of the portion of its construction and land development portfolio characterized as high volatility commercial real estate (“HVCRE”), which resulted in an increase of risk-weighted assets of approximately $0.75 billion at June 30, 2015. The Company’s HVCRE interpretation includes loans on construction projects that have greater than 15% cash equity, are completed and cash flowing, but have not been converted to a “permanent loan.” On this basis, the CET1 capital ratio was estimated to be 11.76% at March 31, 2015. Although the risk weighting of these loans was adjusted, the risk profile of these loans is not materially different than was previously reported; only 1% of construction and land development loans are on nonaccrual status, unchanged from the prior quarter, and the Company has experienced net recoveries on such loans for several consecutive quarters.
Accumulated other comprehensive income (loss) improved to $(35) million at June 30, 2015 from $(115) million at March 31, 2015, primarily as a result of the CDO sales.
ZIONS BANCORPORATION
Press Release – Page 5
July 20, 2015
Net Interest Income
Net interest income increased to $424 million in the second quarter of 2015 from $417 million in the first quarter of 2015. The increase resulted primarily from an additional day of income. The net interest margin decreased to 3.18% in the second quarter of 2015, compared to 3.22% in the first quarter of 2015, primarily due to an increased concentration of cash and securities. During the quarter, as it executes its strategy to improve yields on interest earning assets, the Company increased its government agency residential mortgage backed securities by $583 million and increased its interest rate swap portfolio by approximately $438 million.
Noninterest Income
Excluding the losses from sales of CDOs, noninterest income for the second quarter of 2015 was $137 million, compared to $122 million for the first quarter of 2015. Service charges and fees on deposit accounts and other service charges, commissions and fees increased 4.1% during the first half of 2015 compared to the first half of 2014. The increases were primarily driven by credit card and interchange fees, mortgage loan fees, and interest rate swap management fees. Other noninterest income included a $2.4 million gain related to a branch sale.
During the second quarter of 2015, the Company received approximately $13 million in paydowns and payoffs on its CDO portfolio and by mid-June the Company sold its remaining portfolio of CDO securities ($574 million amortized cost), resulting in net realized pretax losses of approximately $137 million. These sales were accretive to shareholders’ equity as the realized losses were somewhat less than the unrealized losses recorded in AOCI at March 31, 2015.
Noninterest Expense
Noninterest expense for the second quarter of 2015 was $404 million, compared to $397 million for the first quarter of 2015 and $406 million for the second quarter of 2014. Salaries and employee benefits increased by $7.6 million as a result of annual incentive stock awards and variable compensation accruals driven by price changes in the Company’s common stock. Other noninterest expense declined primarily due to $9.2 million in insurance recoveries.
Supplemental Presentation and Conference Call
Zions has posted a supplemental presentation to its website, which will be used to discuss these second quarter results at 5:30 p.m. ET this afternoon (July 20, 2015). Media representatives, analysts, investors, and the public are invited to join this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 71960337, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at zionsbancorporation.com. The webcast of the conference call will also be archived and available for 30 days.
ZIONS BANCORPORATION
Press Release – Page 6
July 20, 2015
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 in 11 Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Company is a national leader in Small Business Administration lending and received 24 “Excellence” awards by Greenwich Associates for the 2014 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 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. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. 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 could cause actual results to differ materially from those expressed in the forward-looking statements include the actual amount and duration of declines in the price of oil and gas as well as other factors discussed in the Company’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.
ZIONS BANCORPORATION
Press Release – Page 7
July 20, 2015
FINANCIAL HIGHLIGHTS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands, except share, per share, and ratio data) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| BALANCE SHEET | | | | | | | | | |
| Loans and leases, net of allowance | $ | 39,414,609 |
| | $ | 39,560,101 |
| | $ | 39,458,995 |
| | $ | 39,129,295 |
| | $ | 38,954,172 |
|
| Total assets | 58,365,459 |
| | 57,555,931 |
| | 57,208,874 |
| | 55,458,870 |
| | 55,111,275 |
|
| Deposits | 48,937,124 |
| | 48,123,360 |
| | 47,848,075 |
| | 46,266,562 |
| | 45,672,140 |
|
| Total shareholders’ equity | 7,530,175 |
| | 7,454,298 |
| | 7,369,530 |
| | 7,322,159 |
| | 6,700,090 |
|
| | | | | | | | | | |
| STATEMENT OF INCOME | | | | | | | | | |
| Net interest income | $ | 423,704 |
| | $ | 417,346 |
| | $ | 430,430 |
| | $ | 416,819 |
| | $ | 416,284 |
|
| Taxable-equivalent net interest income | 428,015 |
| | 421,581 |
| | 434,789 |
| | 420,850 |
| | 420,202 |
|
| Provision for loan losses | 566 |
| | (1,494 | ) | | 11,587 |
| | (54,643 | ) | | (54,416 | ) |
| Total noninterest income | 421 |
| | 121,822 |
| | 129,396 |
| | 116,071 |
| | 124,849 |
|
| Total noninterest expense | 404,100 |
| | 397,461 |
| | 422,666 |
| | 438,536 |
| | 406,027 |
|
| Net earnings (loss) applicable to common shareholders | (1,100 | ) | | 75,279 |
| | 66,761 |
| | 79,127 |
| | 104,490 |
|
| | | | | | | | | | |
| PER COMMON SHARE | | | | | | | | | |
| Net earnings (loss) per diluted common share | $ | (0.01 | ) | | $ | 0.37 |
| | $ | 0.33 |
| | $ | 0.40 |
| | $ | 0.56 |
|
| Dividends | 0.06 |
| | 0.04 |
| | 0.04 |
| | 0.04 |
| | 0.04 |
|
Book value per common share 1 | 32.03 |
| | 31.74 |
| | 31.35 |
| | 31.14 |
| | 30.77 |
|
Tangible book value per common share 1 | 26.95 |
| | 26.64 |
| | 26.23 |
| | 26.00 |
| | 25.13 |
|
| | | | | | | | | | |
| SELECTED RATIOS | | | | | | | | | |
| Return on average assets | 0.10 | % | | 0.66 | % | | 0.57 | % | | 0.69 | % | | 0.87 | % |
| Return on average common equity | (0.07 | )% | | 4.77 | % | | 4.06 | % | | 5.10 | % | | 7.30 | % |
| Tangible return on avg tangible common equity | 0.03 | % | | 5.80 | % | | 4.95 | % | | 6.19 | % | | 9.07 | % |
| Net interest margin | 3.18 | % | | 3.22 | % | | 3.25 | % | | 3.20 | % | | 3.29 | % |
| Efficiency ratio | 71.4 | % | | 72.3 | % | | 74.1 | % | | 73.0 | % | | 73.3 | % |
| Ratio of nonperforming lending-related assets to loans and leases and other real estate owned | 0.96 | % | | 0.99 | % | | 0.81 | % | | 0.84 | % | | 0.95 | % |
| Annualized ratio of net loan and lease charge-offs to average loans | 0.11 | % | | (0.17 | )% | | 0.17 | % | | 0.11 | % | | 0.06 | % |
Ratio of total allowance for credit losses to loans and leases outstanding 1 | 1.72 | % | | 1.75 | % | | 1.71 | % | | 1.74 | % | | 1.95 | % |
| | | | | | | | | | |
Capital Ratios 1 | | | | | | | | | |
| Tangible common equity ratio | 9.58 | % | | 9.58 | % | | 9.48 | % | | 9.70 | % | | 8.60 | % |
Basel III: 2 | | | | | | | | | |
| Common equity tier 1 capital | 11.91 | % | | 11.76 | % | | | | | | |
| Tier 1 leverage | 11.67 | % | | 11.75 | % | | | | | | |
| Tier 1 risk-based capital | 14.15 | % | | 13.93 | % | | | | | | |
| Total risk-based capital | 16.20 | % | | 15.98 | % | | | | | | |
| Basel I: | | | | | | | | | |
| Tier 1 common equity |
|
| |
| | 11.92 | % | | 11.86 | % | | 10.45 | % |
| Tier 1 leverage |
|
| |
| | 11.82 | % | | 11.87 | % | | 11.00 | % |
| Tier 1 risk-based capital |
|
| |
| | 14.47 | % | | 14.43 | % | | 13.00 | % |
| Total risk-based capital |
|
| |
| | 16.27 | % | | 16.28 | % | | 14.90 | % |
| | | | | | | | | | |
| Weighted average common and common-equivalent shares outstanding | 202,887,762 |
| | 202,944,209 |
| | 203,277,500 |
| | 197,271,076 |
| | 185,286,329 |
|
Common shares outstanding 1 | 203,740,914 |
| | 203,192,991 |
| | 203,014,903 |
| | 202,898,491 |
| | 185,112,965 |
|
| |
2 | Basel III capital ratios became effective January 1, 2015 and are based on a 2015 phase-in. The ratios at June 30, 2015 and March 31, 2015 are estimates; the March 31, 2015 ratios vary from previous disclosures as the Company refines its calculation methodology. See previous discussion in this press release under “Shareholders’ Equity.” |
ZIONS BANCORPORATION
Press Release – Page 8
July 20, 2015
CONSOLIDATED BALANCE SHEETS
|
| | | | | | | | | | | | | | | | | | | |
| (In thousands, except shares) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| | (Unaudited) | | (Unaudited) | | | | (Unaudited) | | (Unaudited) |
| ASSETS | | | | | | | | | |
| Cash and due from banks | $ | 758,238 |
| | $ | 720,858 |
| | $ | 841,942 |
| | $ | 585,672 |
| | $ | 1,381,262 |
|
| Money market investments: | | | | | | | | | |
| Interest-bearing deposits | 7,661,311 |
| | 6,791,762 |
| | 7,178,097 |
| | 7,467,884 |
| | 6,389,222 |
|
| Federal funds sold and security resell agreements | 1,404,246 |
| | 1,519,352 |
| | 1,386,291 |
| | 355,844 |
| | 478,535 |
|
| Investment securities: | | | | | | �� | | | |
| Held-to-maturity, at adjusted cost (approximate fair value $578,327, $602,355, $677,196, $642,529, and $643,926) | 570,869 |
| | 590,950 |
| | 647,252 |
| | 609,758 |
| | 615,104 |
|
| Available-for-sale, at fair value | 4,652,415 |
| | 4,450,502 |
| | 3,844,248 |
| | 3,563,408 |
| | 3,462,809 |
|
| Trading account, at fair value | 74,519 |
| | 71,392 |
| | 70,601 |
| | 55,419 |
| | 56,572 |
|
| | 5,297,803 |
| | 5,112,844 |
| | 4,562,101 |
| | 4,228,585 |
| | 4,134,485 |
|
| | | | | | | | | | |
| Loans held for sale | 152,448 |
| | 128,946 |
| | 132,504 |
| | 109,139 |
| | 164,374 |
|
| | | | | | | | | | |
| Loans and leases, net of unearned income and fees | 40,023,984 |
| | 40,180,114 |
| | 40,063,658 |
| | 39,739,572 |
| | 39,630,079 |
|
| Less allowance for loan losses | 609,375 |
| | 620,013 |
| | 604,663 |
| | 610,277 |
| | 675,907 |
|
| Loans, net of allowance | 39,414,609 |
| | 39,560,101 |
| | 39,458,995 |
| | 39,129,295 |
| | 38,954,172 |
|
| | | | | | | | | | |
| Other noninterest-bearing investments | 863,443 |
| | 870,125 |
| | 865,950 |
| | 855,743 |
| | 854,978 |
|
| Premises and equipment, net | 856,577 |
| | 844,900 |
| | 829,809 |
| | 811,127 |
| | 803,214 |
|
| Goodwill | 1,014,129 |
| | 1,014,129 |
| | 1,014,129 |
| | 1,014,129 |
| | 1,014,129 |
|
| Core deposit and other intangibles | 20,843 |
| | 23,162 |
| | 25,520 |
| | 28,160 |
| | 30,826 |
|
| Other real estate owned | 13,269 |
| | 17,256 |
| | 18,916 |
| | 27,418 |
| | 27,725 |
|
| Other assets | 908,543 |
| | 952,496 |
| | 894,620 |
| | 845,874 |
| | 878,353 |
|
| | $ | 58,365,459 |
| | $ | 57,555,931 |
| | $ | 57,208,874 |
| | $ | 55,458,870 |
| | $ | 55,111,275 |
|
| | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing demand | $ | 21,557,584 |
| | $ | 20,854,630 |
| | $ | 20,529,124 |
| | $ | 19,771,631 |
| | $ | 19,611,516 |
|
| Interest-bearing: | | | | | | | | | |
| Savings and money market | 24,744,288 |
| | 24,540,927 |
| | 24,583,636 |
| | 23,742,911 |
| | 23,308,114 |
|
| Time | 2,263,146 |
| | 2,344,818 |
| | 2,406,924 |
| | 2,441,756 |
| | 2,500,303 |
|
| Foreign | 372,106 |
| | 382,985 |
| | 328,391 |
| | 310,264 |
| | 252,207 |
|
| | 48,937,124 |
| | 48,123,360 |
| | 47,848,075 |
| | 46,266,562 |
| | 45,672,140 |
|
| | | | | | | | | | |
| Federal funds and other short-term borrowings | 227,124 |
| | 203,597 |
| | 244,223 |
| | 191,798 |
| | 258,401 |
|
| Long-term debt | 1,050,938 |
| | 1,089,321 |
| | 1,092,282 |
| | 1,113,677 |
| | 1,933,136 |
|
| Reserve for unfunded lending commitments | 79,961 |
| | 82,287 |
| | 81,076 |
| | 79,377 |
| | 95,472 |
|
| Other liabilities | 540,137 |
| | 603,068 |
| | 573,688 |
| | 485,297 |
| | 452,036 |
|
| Total liabilities | 50,835,284 |
| | 50,101,633 |
| | 49,839,344 |
| | 48,136,711 |
| | 48,411,185 |
|
| | | | | | | | | | |
| Shareholders’ equity: | | | | | | | | | |
| Preferred stock, without par value, authorized 4,400,000 shares | 1,004,032 |
| | 1,004,032 |
| | 1,004,011 |
| | 1,004,006 |
| | 1,004,006 |
|
| Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 203,740,914, 203,192,991, 203,014,903, 202,898,491, and 185,112,965 shares | 4,738,272 |
| | 4,728,556 |
| | 4,723,855 |
| | 4,717,295 |
| | 4,192,136 |
|
| Retained earnings | 1,823,043 |
| | 1,836,619 |
| | 1,769,705 |
| | 1,711,785 |
| | 1,640,785 |
|
| Accumulated other comprehensive income (loss) | (35,172 | ) | | (114,909 | ) | | (128,041 | ) | | (110,927 | ) | | (136,837 | ) |
| Total shareholders’ equity | 7,530,175 |
| | 7,454,298 |
| | 7,369,530 |
| | 7,322,159 |
| | 6,700,090 |
|
| | $ | 58,365,459 |
| | $ | 57,555,931 |
| | $ | 57,208,874 |
| | $ | 55,458,870 |
| | $ | 55,111,275 |
|
ZIONS BANCORPORATION
Press Release – Page 9
July 20, 2015
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands, except per share amounts) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Interest income: | | | | | | | | | |
| Interest and fees on loans | $ | 420,642 |
| | $ | 415,755 |
| | $ | 431,084 |
| | $ | 430,416 |
| | $ | 433,802 |
|
| Interest on money market investments | 5,785 |
| | 5,218 |
| | 5,913 |
| | 5,483 |
| | 4,888 |
|
| Interest on securities | 28,809 |
| | 27,473 |
| | 24,963 |
| | 24,377 |
| | 24,502 |
|
| Total interest income | 455,236 |
| | 448,446 |
| | 461,960 |
| | 460,276 |
| | 463,192 |
|
| Interest expense: | | | | | | | | | |
| Interest on deposits | 12,321 |
| | 12,104 |
| | 12,548 |
| | 12,313 |
| | 12,096 |
|
| Interest on short- and long-term borrowings | 19,211 |
| | 18,996 |
| | 18,982 |
| | 31,144 |
| | 34,812 |
|
| Total interest expense | 31,532 |
| | 31,100 |
| | 31,530 |
| | 43,457 |
| | 46,908 |
|
| Net interest income | 423,704 |
| | 417,346 |
| | 430,430 |
| | 416,819 |
| | 416,284 |
|
| Provision for loan losses | 566 |
| | (1,494 | ) | | 11,587 |
| | (54,643 | ) | | (54,416 | ) |
| Net interest income after provision for loan losses | 423,138 |
| | 418,840 |
| | 418,843 |
| | 471,462 |
| | 470,700 |
|
| | | | | | | | | | |
| Noninterest income: | | | | | | | | | |
| Service charges and fees on deposit accounts | 41,616 |
| | 41,194 |
| | 42,224 |
| | 43,468 |
| | 41,400 |
|
| Other service charges, commissions and fees | 51,705 |
| | 47,486 |
| | 50,130 |
| | 51,639 |
| | 47,959 |
|
| Wealth management income | 8,160 |
| | 7,615 |
| | 8,078 |
| | 7,438 |
| | 7,980 |
|
| Loan sales and servicing income | 8,382 |
| | 7,706 |
| | 7,134 |
| | 7,592 |
| | 7,332 |
|
| Capital markets and foreign exchange | 7,275 |
| | 5,501 |
| | 6,266 |
| | 5,400 |
| | 5,875 |
|
| Dividends and other investment income | 9,343 |
| | 9,372 |
| | 16,479 |
| | 11,324 |
| | 7,995 |
|
| Fair value and nonhedge derivative income (loss) | 1,844 |
| | (1,088 | ) | | (961 | ) | | 44 |
| | (1,934 | ) |
| Equity securities gains, net | 4,839 |
| | 3,353 |
| | 9,606 |
| | 440 |
| | 2,513 |
|
| Fixed income securities gains (losses), net | (138,436 | ) | | (239 | ) | | (11,620 | ) | | (13,901 | ) | | 5,026 |
|
| Other | 5,693 |
| | 922 |
| | 2,060 |
| | 2,627 |
| | 703 |
|
| Total noninterest income | 421 |
| | 121,822 |
| | 129,396 |
| | 116,071 |
| | 124,849 |
|
| | | | | | | | | | |
| Noninterest expense: | | | | | | | | | |
| Salaries and employee benefits | 251,133 |
| | 243,519 |
| | 238,731 |
| | 245,518 |
| | 238,760 |
|
| Occupancy, net | 30,095 |
| | 29,339 |
| | 29,962 |
| | 28,495 |
| | 28,939 |
|
| Furniture, equipment and software | 31,247 |
| | 29,713 |
| | 30,858 |
| | 28,524 |
| | 27,986 |
|
| Other real estate expense | (445 | ) | | 374 |
| | (3,467 | ) | | 875 |
| | (266 | ) |
| Credit-related expense | 8,106 |
| | 5,939 |
| | 7,518 |
| | 6,508 |
| | 7,161 |
|
| Provision for unfunded lending commitments | (2,326 | ) | | 1,211 |
| | 1,699 |
| | (16,095 | ) | | 6,779 |
|
| Professional and legal services | 13,110 |
| | 11,483 |
| | 26,257 |
| | 16,588 |
| | 12,171 |
|
| Advertising | 6,511 |
| | 6,975 |
| | 5,805 |
| | 6,094 |
| | 6,803 |
|
| FDIC premiums | 8,609 |
| | 8,119 |
| | 8,031 |
| | 8,204 |
| | 8,017 |
|
| Amortization of core deposit and other intangibles | 2,318 |
| | 2,358 |
| | 2,640 |
| | 2,665 |
| | 2,736 |
|
| Debt extinguishment cost | 2,395 |
| | — |
| | — |
| | 44,422 |
| | — |
|
| Other | 53,347 |
| | 58,431 |
| | 74,632 |
| | 66,738 |
| | 66,941 |
|
| Total noninterest expense | 404,100 |
| | 397,461 |
| | 422,666 |
| | 438,536 |
| | 406,027 |
|
| Income before income taxes | 19,459 |
| | 143,201 |
| | 125,573 |
| | 148,997 |
| | 189,522 |
|
| Income taxes | 5,499 |
| | 51,176 |
| | 43,759 |
| | 53,109 |
| | 69,972 |
|
| Net income | 13,960 |
| | 92,025 |
| | 81,814 |
| | 95,888 |
| | 119,550 |
|
| Preferred stock dividends | (15,060 | ) | | (16,746 | ) | | (15,053 | ) | | (16,761 | ) | | (15,060 | ) |
| Net earnings (loss) applicable to common shareholders | $ | (1,100 | ) | | $ | 75,279 |
| | $ | 66,761 |
| | $ | 79,127 |
| | $ | 104,490 |
|
| | | | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | | | |
| Basic shares | 202,888 |
| | 202,603 |
| | 202,783 |
| | 196,687 |
| | 184,668 |
|
| Diluted shares | 202,888 |
| | 202,944 |
| | 203,278 |
| | 197,271 |
| | 185,286 |
|
| Net earnings (loss) per common share: | | | | | | | | | |
| Basic | $ | (0.01 | ) | | $ | 0.37 |
| | $ | 0.33 |
| | $ | 0.40 |
| | $ | 0.56 |
|
| Diluted | (0.01 | ) | | 0.37 |
| | 0.33 |
| | 0.40 |
| | 0.56 |
|
ZIONS BANCORPORATION
Press Release – Page 10
July 20, 2015
Note: FDIC-supported/PCI loans previously disclosed separately at September 30, 2014 and June 30, 2014 have been reclassified to their respective loan segments and classes due to declining materiality. Subsequent schedules presented herein reflect, as applicable, these reclassifications.
Loan Balances Held for Investment by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In millions) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Commercial: | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 13,111 |
| | | | $ | 13,264 |
| | | | $ | 13,163 |
| | | | $ | 12,874 |
| | | | $ | 12,789 |
| |
| Leasing | | 402 |
| | | | 407 |
| | | | 409 |
| | | | 405 |
| | | | 415 |
| |
| Owner occupied | | 7,277 |
| | | | 7,310 |
| | | | 7,351 |
| | | | 7,430 |
| | | | 7,499 |
| |
| Municipal | | 589 |
| | | | 555 |
| | | | 521 |
| | | | 518 |
| | | | 522 |
| |
| Total commercial | | 21,379 |
| | | | 21,536 |
| | | | 21,444 |
| | | | 21,227 |
| | | | 21,225 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | 2,062 |
| | | | 2,045 |
| | | | 1,986 |
| | | | 1,895 |
| | | | 2,343 |
| |
| Term | | 8,058 |
| | | | 8,088 |
| | | | 8,127 |
| | | | 8,259 |
| | | | 8,093 |
| |
| Total commercial real estate | | 10,120 |
| | | | 10,133 |
| | | | 10,113 |
| | | | 10,154 |
| | | | 10,436 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | |
| Home equity credit line | | 2,348 |
| | | | 2,315 |
| | | | 2,321 |
| | | | 2,266 |
| | | | 2,215 |
| |
| 1-4 family residential | | 5,194 |
| | | | 5,213 |
| | | | 5,201 |
| | | | 5,156 |
| | | | 4,830 |
| |
| Construction and other consumer real estate | | 372 |
| | | | 373 |
| | | | 371 |
| | | | 350 |
| | | | 339 |
| |
| Bankcard and other revolving plans | | 409 |
| | | | 407 |
| | | | 401 |
| | | | 389 |
| | | | 381 |
| |
| Other | | 202 |
| | | | 203 |
| | | | 213 |
| | | | 198 |
| | | | 204 |
| |
| Total consumer | | 8,525 |
| | | | 8,511 |
| | | | 8,507 |
| | | | 8,359 |
| | | | 7,969 |
| |
| Total loans | | $ | 40,024 |
| | | | $ | 40,180 |
| | | | $ | 40,064 |
| | | | $ | 39,740 |
| | | | $ | 39,630 |
| |
Nonperforming Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (Amounts in thousands) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| | | | | | | | | | |
| Nonaccrual loans | $ | 372,830 |
| | $ | 382,066 |
| | $ | 306,648 |
| | $ | 307,230 |
| | $ | 351,447 |
|
| Other real estate owned | 13,269 |
| | 17,256 |
| | 18,916 |
| | 27,418 |
| | 27,725 |
|
| Total nonperforming assets | $ | 386,099 |
| | $ | 399,322 |
| | $ | 325,564 |
| | $ | 334,648 |
| | $ | 379,172 |
|
| | | | | | | | | | |
Ratio of nonperforming assets to loans1 and leases and other real estate owned | 0.96 | % | | 0.99 | % | | 0.81 | % | | 0.84 | % | | 0.95 | % |
| | | | | | | | | | |
| Accruing loans past due 90 days or more | $ | 27,204 |
| | $ | 31,552 |
| | $ | 29,228 |
| | $ | 30,755 |
| | $ | 46,769 |
|
Ratio of accruing loans past due 90 days or more to loans1 and leases | 0.07 | % | | 0.08 | % | | 0.07 | % | | 0.08 | % | | 0.12 | % |
| | | | | | | | | | |
| Nonaccrual loans and accruing loans past due 90 days or more | $ | 400,034 |
| | $ | 413,618 |
| | $ | 335,876 |
| | $ | 337,985 |
| | $ | 398,216 |
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases | 1.00 | % | | 1.03 | % | | 0.84 | % | | 0.85 | % | | 1.00 | % |
| | | | | | | | | | |
| Accruing loans past due 30-89 days | $ | 124,955 |
| | $ | 97,242 |
| | $ | 86,488 |
| | $ | 89,081 |
| | $ | 108,083 |
|
| | | | | | | | | | |
| Restructured loans included in nonaccrual loans | 118,358 |
| | 110,364 |
| | 97,779 |
| | 109,673 |
| | 103,157 |
|
| Restructured loans on accrual | 180,146 |
| | 199,065 |
| | 245,550 |
| | 264,994 |
| | 320,206 |
|
| | | | | | | | | | |
| Classified loans | 1,293,022 |
| | 1,268,981 |
| | 1,147,106 |
| | 1,187,407 |
| | 1,304,077 |
|
1 Includes loans held for sale.
ZIONS BANCORPORATION
Press Release – Page 11
July 20, 2015
Allowance for Credit Losses
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (Amounts in thousands) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | $ | 620,013 |
| | $ | 604,663 |
| | $ | 610,277 |
| | $ | 675,907 |
| | $ | 736,953 |
|
| Add: | | | | | | | | | |
| Provision for losses | 566 |
| | (1,494 | ) | | 11,587 |
| | (54,643 | ) | | (54,416 | ) |
| Adjustment for FDIC-supported/PCI loans | 38 |
| | (38 | ) | | (19 | ) | | (25 | ) | | (444 | ) |
| Deduct: | | | | | | | | | |
| Gross loan and lease charge-offs | (31,048 | ) | | (20,188 | ) | | (35,544 | ) | | (26,471 | ) | | (23,400 | ) |
| Recoveries | 19,806 |
| | 37,070 |
| | 18,362 |
| | 15,509 |
| | 17,214 |
|
| Net loan and lease (charge-offs) recoveries | (11,242 | ) | | 16,882 |
| | (17,182 | ) | | (10,962 | ) | | (6,186 | ) |
| Balance at end of period | $ | 609,375 |
| | $ | 620,013 |
| | $ | 604,663 |
| | $ | 610,277 |
| | $ | 675,907 |
|
| | | | | | | | | | |
| Ratio of allowance for loan losses to loans and leases, at period end | 1.52 | % | | 1.54 | % | | 1.51 | % | | 1.54 | % | | 1.71 | % |
| | | | | | | | | | |
| Ratio of allowance for loan losses to nonperforming loans, at period end | 163.45 | % | | 162.28 | % | | 197.18 | % | | 198.64 | % | | 192.32 | % |
| | | | | | | | | | |
| Annualized ratio of net loan and lease charge-offs to average loans | 0.11 | % | | (0.17 | )% | | 0.17 | % | | 0.11 | % | | 0.06 | % |
| | | | | | | | | | |
| Reserve for Unfunded Lending Commitments | | | | | | | | | |
| Balance at beginning of period | $ | 82,287 |
| | $ | 81,076 |
| | $ | 79,377 |
| | $ | 95,472 |
| | $ | 88,693 |
|
| Provision charged (credited) to earnings | (2,326 | ) | | 1,211 |
| | 1,699 |
| | (16,095 | ) | | 6,779 |
|
| Balance at end of period | $ | 79,961 |
| | $ | 82,287 |
| | $ | 81,076 |
| | $ | 79,377 |
| | $ | 95,472 |
|
| | | | | | | | | | |
| Total Allowance for Credit Losses | | | | | | | | | |
| Allowance for loan losses | $ | 609,375 |
| | $ | 620,013 |
| | $ | 604,663 |
| | $ | 610,277 |
| | $ | 675,907 |
|
| Reserve for unfunded lending commitments | 79,961 |
| | 82,287 |
| | 81,076 |
| | 79,377 |
| | 95,472 |
|
| Total allowance for credit losses | $ | 689,336 |
| | $ | 702,300 |
| | $ | 685,739 |
| | $ | 689,654 |
| | $ | 771,379 |
|
| | | | | | | | | | |
| Ratio of total allowance for credit losses to loans and leases outstanding, at period end | 1.72 | % | | 1.75 | % | | 1.71 | % | | 1.74 | % | | 1.95 | % |
ZIONS BANCORPORATION
Press Release – Page 12
July 20, 2015
Nonaccrual Loans by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In millions) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| | | | | | | | | | | | | | | | | | | | |
| Loans held for sale | | $ | — |
| | | | $ | — |
| | | | $ | — |
| | | | $ | — |
| | | | $ | 29 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | 165 |
| | | | 163 |
| | | | 106 |
| | | | 88 |
| | | | 83 |
| |
| Leasing | | — |
| | | | — |
| | | | — |
| | | | 1 |
| | | | 1 |
| |
| Owner occupied | | 89 |
| | | | 98 |
| | | | 87 |
| | | | 98 |
| | | | 101 |
| |
| Municipal | | 1 |
| | | | 1 |
| | | | 1 |
| | | | 8 |
| | | | 9 |
| |
| Total commercial | | 255 |
| | | | 262 |
| | | | 194 |
| | | | 195 |
| | | | 194 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | 20 |
| | | | 22 |
| | | | 24 |
| | | | 25 |
| | | | 24 |
| |
| Term | | 44 |
| | | | 38 |
| | | | 25 |
| | | | 30 |
| | | | 44 |
| |
| Total commercial real estate | | 64 |
| | | | 60 |
| | | | 49 |
| | | | 55 |
| | | | 68 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | |
| Home equity credit line | | 9 |
| | | | 10 |
| | | | 12 |
| | | | 12 |
| | | | 11 |
| |
| 1-4 family residential | | 43 |
| | | | 48 |
| | | | 50 |
| | | | 43 |
| | | | 45 |
| |
| Construction and other consumer real estate | | 1 |
| | | | 2 |
| | | | 2 |
| | | | 2 |
| | | | 2 |
| |
| Bankcard and other revolving plans | | 1 |
| | | | — |
| | | | — |
| | | | — |
| | | | 1 |
| |
| Other | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | 1 |
| |
| Total consumer | | 54 |
| | | | 60 |
| | | | 64 |
| | | | 57 |
| | | | 60 |
| |
| Subtotal nonaccrual loans | | 373 |
| | | | 382 |
| | | | 307 |
| | | | 307 |
| | | | 322 |
| |
| Total nonaccrual loans | | $ | 373 |
| | | | $ | 382 |
| | | | $ | 307 |
| | | | $ | 307 |
| | | | $ | 351 |
| |
Net Charge-Offs by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In millions) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Commercial: | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 13 |
| | | | $ | (5 | ) | | | | $ | 18 |
| | | | $ | 9 |
| | | | $ | 7 |
| |
| Leasing | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Owner occupied | | (3 | ) | | | | — |
| | | | — |
| | | | 2 |
| | | | (2 | ) | |
| Municipal | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Total commercial | | 10 |
| | | | (5 | ) | | | | 18 |
| | | | 11 |
| | | | 5 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | (1 | ) | | | | (3 | ) | | | | (1 | ) | | | | (2 | ) | | | | (3 | ) | |
| Term | | 2 |
| | | | (10 | ) | | | | (1 | ) | | | | 2 |
| | | | 3 |
| |
| Total commercial real estate | | 1 |
| | | | (13 | ) | | | | (2 | ) | | | | — |
| | | | — |
| |
| | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | |
| Home equity credit line | | — |
| | | | (1 | ) | | | | — |
| | | | — |
| | | | 1 |
| |
| 1-4 family residential | | — |
| | | | 1 |
| | | | 1 |
| | | | (1 | ) | | | | (1 | ) | |
| Construction and other consumer real estate | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Bankcard and other revolving plans | | 1 |
| | | | 1 |
| | | | — |
| | | | 1 |
| | | | 1 |
| |
| Other | | (1 | ) | | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Total consumer loans | | — |
| | | | 1 |
| | | | 1 |
| | | | — |
| | | | 1 |
| |
| Total net charge-offs (recoveries) | | $ | 11 |
| | | | $ | (17 | ) | | | | $ | 17 |
| | | | $ | 11 |
| | | | $ | 6 |
| |
ZIONS BANCORPORATION
Press Release – Page 13
July 20, 2015
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| (In thousands) | Average balance | | Average yield/rate | | Average balance | | Average yield/rate | | Average balance | | Average yield/rate |
| ASSETS | | | | | | | | | | | |
| Money market investments | $ | 8,414,602 |
| | 0.28 | % | | $ | 8,013,355 |
| | 0.26 | % | | $ | 8,712,588 |
| | 0.27 | % |
| Securities: | | | | | | | | | | | |
| Held-to-maturity | 583,349 |
| | 5.06 | % | | 632,927 |
| | 5.12 | % | | 634,973 |
| | 4.97 | % |
| Available-for-sale | 4,585,760 |
| | 1.99 | % | | 4,080,004 |
| | 2.06 | % | | 3,676,403 |
| | 1.98 | % |
| Trading account | 76,706 |
| | 3.19 | % | | 69,910 |
| | 3.47 | % | | 69,323 |
| | 3.02 | % |
| Total securities | 5,245,815 |
| | 2.35 | % | | 4,782,841 |
| | 2.49 | % | | 4,380,699 |
| | 2.43 | % |
| | | | | | | | | | | | |
| Loans held for sale | 115,377 |
| | 3.48 | % | | 105,279 |
| | 3.52 | % | | 115,372 |
| | 3.53 | % |
Loans and leases 1 | 40,131,334 |
| | 4.22 | % | | 40,179,007 |
| | 4.21 | % | | 39,845,470 |
| | 4.31 | % |
| Total interest-earning assets | 53,907,128 |
| | 3.42 | % | | 53,080,482 |
| | 3.46 | % | | 53,054,129 |
| | 3.49 | % |
| Cash and due from banks | 591,347 |
| | | | 743,618 |
| | | | 764,518 |
| | |
| Allowance for loan losses | (621,348 | ) | | | | (609,233 | ) | | | | (607,317 | ) | | |
| Goodwill | 1,014,129 |
| | | | 1,014,129 |
| | | | 1,014,129 |
| | |
| Core deposit and other intangibles | 22,135 |
| | | | 24,355 |
| | | | 26,848 |
| | |
| Other assets | 2,564,121 |
| | | | 2,564,199 |
| | | | 2,692,339 |
| | |
| Total assets | $ | 57,477,512 |
| | | | $ | 56,817,550 |
| | | | $ | 56,944,646 |
| | |
| | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings and money market | $ | 24,514,516 |
| | 0.16 | % | | $ | 24,214,265 |
| | 0.16 | % | | $ | 24,089,519 |
| | 0.16 | % |
| Time | 2,300,593 |
| | 0.43 | % | | 2,372,492 |
| | 0.43 | % | | 2,426,878 |
| | 0.45 | % |
| Foreign | 325,640 |
| | 0.14 | % | | 351,873 |
| | 0.14 | % | | 325,013 |
| | 0.15 | % |
| Total interest-bearing deposits | 27,140,749 |
| | 0.18 | % | | 26,938,630 |
| | 0.18 | % | | 26,841,410 |
| | 0.19 | % |
| Borrowed funds: | | | | | | | | | | | |
| Federal funds and other short-term borrowings | 214,287 |
| | 0.14 | % | | 219,747 |
| | 0.14 | % | | 205,507 |
| | 0.13 | % |
| Long-term debt | 1,081,785 |
| | 7.10 | % | | 1,091,706 |
| | 7.03 | % | | 1,102,673 |
| | 6.81 | % |
| Total borrowed funds | 1,296,072 |
| | 5.95 | % | | 1,311,453 |
| | 5.87 | % | | 1,308,180 |
| | 5.76 | % |
| Total interest-bearing liabilities | 28,436,821 |
| | 0.44 | % | | 28,250,083 |
| | 0.45 | % | | 28,149,590 |
| | 0.44 | % |
| Noninterest-bearing deposits | 20,984,073 |
| | | | 20,545,395 |
| | | | 20,706,849 |
| | |
| Other liabilities | 559,722 |
| | | | 612,752 |
| | | | 563,014 |
| | |
| Total liabilities | 49,980,616 |
| | | | 49,408,230 |
| | | | 49,419,453 |
| | |
| Shareholders’ equity: | | | | | | | | | | | |
| Preferred equity | 1,004,031 |
| | | | 1,004,015 |
| | | | 1,004,006 |
| | |
| Common equity | 6,492,865 |
| | | | 6,405,305 |
| | | | 6,521,187 |
| | |
| Total shareholders’ equity | 7,496,896 |
| | | | 7,409,320 |
| | | | 7,525,193 |
| | |
| Total liabilities and shareholders’ equity | $ | 57,477,512 |
| | | | $ | 56,817,550 |
| | | | $ | 56,944,646 |
| | |
| | | | | | | | | | | | |
| Spread on average interest-bearing funds | | | 2.98 | % | | | | 3.01 | % | | | | 3.05 | % |
| | | | | | | | | | | | |
| Net yield on interest-earning assets | | | 3.18 | % | | | | 3.22 | % | | | | 3.25 | % |
1 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
ZIONS BANCORPORATION
Press Release – Page 14
July 20, 2015
GAAP to Non-GAAP Reconciliations
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share amounts) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Tangible Book Value per Common Share | | | | | | | | |
| | | | | | | | | | |
| Total shareholders’ equity (GAAP) | $ | 7,530,175 |
| | $ | 7,454,298 |
| | $ | 7,369,530 |
| | $ | 7,322,159 |
| | $ | 6,700,090 |
|
| Preferred stock | (1,004,032 | ) | | (1,004,032 | ) | | (1,004,011 | ) | | (1,004,006 | ) | | (1,004,006 | ) |
| Goodwill | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) |
| Core deposit and other intangibles | (20,843 | ) | | (23,162 | ) | | (25,520 | ) | | (28,160 | ) | | (30,826 | ) |
| Tangible common equity (non-GAAP) (a) | $ | 5,491,171 |
| | $ | 5,412,975 |
| | $ | 5,325,870 |
| | $ | 5,275,864 |
| | $ | 4,651,129 |
|
| | | | | | | | | | |
| Common shares outstanding (b) | 203,741 |
| | 203,193 |
| | 203,015 |
| | 202,898 |
| | 185,113 |
|
| | | | | | | | | | |
| Tangible book value per common share (non-GAAP) (a/b) | $ | 26.95 |
| | $ | 26.64 |
| | $ | 26.23 |
| | $ | 26.00 |
| | $ | 25.13 |
|
| | | | | | | | | | |
| | Three Months Ended |
| (Dollar amounts in thousands) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Tangible Return on Average Tangible Common Equity | | | | | | | | |
| | | | | | | | | | |
| Net earnings (loss) applicable to common shareholders (GAAP) | $ | (1,100 | ) | | $ | 75,279 |
| | $ | 66,761 |
| | $ | 79,127 |
| | $ | 104,490 |
|
| | | | | | | | | | |
| Adjustments, net of tax: | | | | | | | | | |
| Amortization of core deposit and other intangibles | 1,472 |
| | 1,496 |
| | 1,676 |
| | 1,690 |
| | 1,735 |
|
| Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a) | $ | 372 |
| | $ | 76,775 |
| | $ | 68,437 |
| | $ | 80,817 |
| | $ | 106,225 |
|
| | | | | | | | | | |
| Average common equity (GAAP) | $ | 6,492,865 |
| | $ | 6,405,305 |
| | $ | 6,521,187 |
| | $ | 6,221,344 |
| | $ | 5,744,696 |
|
| Average goodwill | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) |
| Average core deposit and other intangibles | (22,135 | ) | | (24,355 | ) | �� | (26,848 | ) | | (29,535 | ) | | (32,234 | ) |
| Average tangible common equity (non-GAAP) (b) | $ | 5,456,601 |
| | $ | 5,366,821 |
| | $ | 5,480,210 |
| | $ | 5,177,680 |
| | $ | 4,698,333 |
|
| | | | | | | | | | |
| Number of days in quarter (c) | 91 |
| | 90 |
| | 92 |
| | 92 |
| | 91 |
|
| Number of days in year (d) | 365 |
| | 365 |
| | 365 |
| | 365 |
| | 365 |
|
| | | | | | | | | | |
| Tangible return on average tangible common equity (non-GAAP) (a/b/c*d) | 0.03 | % | | 5.80 | % | | 4.95 | % | | 6.19 | % | | 9.07 | % |
ZIONS BANCORPORATION
Press Release – Page 15
July 20, 2015
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (Dollar amounts in thousands) | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 | | June 30,
2014 |
| Efficiency Ratio | | | | | | | | | |
| | | | | | | | | | |
| Noninterest expense (GAAP) (a) | $ | 404,100 |
| | $ | 397,461 |
| | $ | 422,666 |
| | $ | 438,536 |
| | $ | 406,027 |
|
| Adjustments: | | | | | | | | | |
| Severance costs | 1,707 |
| | 2,253 |
| | 1,747 |
| | 4,919 |
| | 1,215 |
|
| Other real estate expense | (445 | ) | | 374 |
| | (3,467 | ) | | 875 |
| | (266 | ) |
| Provision for unfunded lending commitments | (2,326 | ) | | 1,211 |
| | 1,699 |
| | (16,095 | ) | | 6,779 |
|
| Debt extinguishment cost | 2,395 |
| | — |
| | — |
| | 44,422 |
| | — |
|
| Amortization of core deposit and other intangibles | 2,318 |
| | 2,358 |
| | 2,640 |
| | 2,665 |
| | 2,736 |
|
| Restructuring costs | 650 |
| | — |
| | — |
| | — |
| | — |
|
| Total adjustments | 4,299 |
| | 6,196 |
| | 2,619 |
| | 36,786 |
| | 10,464 |
|
| | | | | | | | | | |
| Add-back of adjustments (b) | (4,299 | ) |
| (6,196 | ) |
| (2,619 | ) |
| (36,786 | ) |
| (10,464 | ) |
| Adjusted noninterest expense (non-GAAP) (a+b)=(c) | $ | 399,801 |
|
| $ | 391,265 |
|
| $ | 420,047 |
|
| $ | 401,750 |
|
| $ | 395,563 |
|
| | | | | | | | | | |
| Taxable-equivalent net interest income (GAAP) (d) | $ | 428,015 |
| | $ | 421,581 |
| | $ | 434,789 |
| | $ | 420,850 |
| | $ | 420,202 |
|
| Noninterest income (GAAP) (e) | 421 |
| | 121,822 |
| | 129,396 |
| | 116,071 |
| | 124,849 |
|
| Adjustments: | | | | | | | | | |
| Fair value and nonhedge derivative income (loss) | 1,844 |
| | (1,088 | ) | | (961 | ) | | 44 |
| | (1,934 | ) |
| Equity securities gains, net | 4,839 |
| | 3,353 |
| | 9,606 |
| | 440 |
| | 2,513 |
|
| Fixed income securities gains (losses), net | (138,436 | ) | | (239 | ) | | (11,620 | ) | | (13,901 | ) | | 5,026 |
|
| Total adjustments | (131,753 | ) | | 2,026 |
| | (2,975 | ) | | (13,417 | ) | | 5,605 |
|
| | | | | | | | | | |
| Add-back of adjustments (f) | 131,753 |
|
| (2,026 | ) |
| 2,975 |
|
| 13,417 |
|
| (5,605 | ) |
| Adjusted taxable-equivalent net interest income and noninterest income (non-GAAP) (d+e+f)=(g) | $ | 560,189 |
|
| $ | 541,377 |
|
| $ | 567,160 |
|
| $ | 550,338 |
|
| $ | 539,446 |
|
| | | | | | | | | | |
| Efficiency ratio (c/g) | 71.4 | % |
| 72.3 | % |
| 74.1 | % |
| 73.0 | % |
| 73.3 | % |
This press release presents the non-GAAP financial measures previously shown. The adjustments to reconcile from the applicable GAAP financial measures to the non-GAAP financial measures 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 measures provides a meaningful base for period-to-period and company-to-company comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company and in predicting future performance. These non-GAAP financial measures are used by management to assess the performance of the Company’s business or its financial position 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 these non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management.
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.
