***FOR IMMEDIATE RELEASE***
|
| | | | | |
| For: ZIONS BANCORPORATION | | | | | Contact: James Abbott |
| One South Main, 15th Floor | | | | | Tel: (801) 844-7637 |
| Salt Lake City, Utah | | | | | October 19, 2015 |
| Harris H. Simmons | | | | | |
| Chairman/Chief Executive Officer | | | | | |
ZIONS BANCORPORATION REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS
SALT LAKE CITY, October 19, 2015 – Zions Bancorporation (NASDAQ: ZION) (“Zions” or “the Company”) today reported third quarter net earnings applicable to common shareholders of $84.2 million, or $0.41 per diluted common share, compared to a net loss applicable to common shareholders of $(1.1) million, or $(0.01) per diluted common share, for the second quarter of 2015. The Company’s second quarter results included a $137 million loss, or $0.42 per diluted share, from the sale of remaining collateralized debt obligation (“CDO”) securities. Excluding this loss, net earnings applicable to common shareholders was $83.4 million, or $0.41 per diluted common share, for the second quarter of 2015.
Third Quarter 2015 Highlights
| |
| • | Total noninterest expense was $396 million during the third quarter and $1,198 million year-to-date, compared to $404 million and $802 million reported last quarter. As previously committed, the Company is on track to achieve 50% of its target gross $120 million expense reduction by the end of 2015 and to hold adjusted noninterest expense below $1.6 billion in 2015. |
| |
| • | The efficiency ratio improved to 69.5% during the third quarter, compared to 71.4% during the second quarter, reflecting the Company’s commitment to have this ratio be at or less than 70% for the second half of 2015. |
| |
| • | Overall credit quality remained in line with expectations, with moderate deterioration in energy loans and continued strength in other loans. When compared to the prior quarter’s level, classified loans increased 2%, nonperforming assets declined 4%, net charge-offs excluding energy loans were stable, and the allowance for credit losses remained relatively unchanged. |
ZIONS BANCORPORATION
Press Release – Page 2
October 19, 2015
| |
| • | Energy loan net charge-offs were $17 million during the third quarter; there were no energy loan net charge-offs during the second quarter. The Company increased the allowance for credit losses on its energy portfolio in part due to the substantial decline in energy prices during the third quarter. This contributed to an increased provision for loan losses of $18.3 million during the third quarter, compared to $0.6 million during the second quarter. The overall performance of the energy loan portfolio has been substantially consistent with the Company’s initial communications in late 2014, which concluded that some deterioration was expected from declining energy prices; however, disciplined underwriting and strong reserves will keep the impact relatively modest to net charge-offs and overall profitability. |
| |
| • | Net interest income increased slightly from the prior quarter while the net interest margin declined to 3.11% from 3.18%, primarily driven by an increased concentration of cash and securities and a decline in the yield of the loan portfolio attributable primarily to the waning benefit from loans purchased from the FDIC in 2009. |
| |
| • | Loans held for investment increased $89 million during the third quarter. Excluding the effect of attrition in energy-related loans and the National Real Estate portfolio, loans increased $285 million during the third quarter, compared to a $259 million increase during the second quarter calculated on the same basis. |
“We’re continuing to make solid progress in achieving our goals with respect to improved operating efficiency while building a very strong balance sheet and investing in systems and processes that will allow us to provide exceptional service to our customers,” said Harris H. Simmons, chairman and chief executive officer. “We’ve received regulatory approval to consolidate our seven subsidiary banks under a single national bank charter, which we expect to complete on December 31 of this year. We will continue to emphasize our locally-oriented leadership structure and the power of our strong local brands in each market we serve. We are simultaneously streamlining our risk and credit organizations and enhancing local credit decision-making authority. The consolidation of our bank charters will facilitate a simpler and more responsive operating environment and the realization of efficiencies more quickly and in greater measure than is possible under the status quo.”
Mr. Simmons concluded, “While loan growth has been sluggish in the current environment, we are encouraged by the Company’s credit quality metrics, with only modest deterioration in the level of classified loans and net charge-offs that are in line to better than peer average levels. The Company’s funding profile, loss reserves and capital levels also remain very strong relative to peers.”
Loans
Net loans and leases held for investment increased $89 million, or 0.2%, to $40.1 billion at September 30, 2015 from $40.0 billion at June 30, 2015. Excluding energy-related and National Real Estate loans, net loans and leases increased $285 million during the quarter, compared to $259 million during the prior quarter calculated on the same
ZIONS BANCORPORATION
Press Release – Page 3
October 19, 2015
basis. The adjusted growth rate increased somewhat due to slower runoff rates in the third quarter compared to the prior quarter.
Average loans and leases held for investment of $40.0 billion during the third quarter of 2015 decreased slightly from $40.1 billion during the second quarter. Unfunded lending commitments were $18.0 billion at September 30, 2015, compared to $17.6 billion at June 30, 2015.
Energy-Related Exposure
The following table presents the distribution of energy-related loans by customer market segment:
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ENERGY-RELATED EXPOSURE1 | | | | | % of total oil and gas related | | | | | | % of total oil and gas related | | | | | | | | | | % of total oil and gas related |
| (In millions) | September 30,
2015 | | | June 30, 2015 | | | $ change | | % change | | March 31, 2015 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | | | | | | | | | | | | | | | | | | | | |
| Oil and gas-related: | | | | | | | | | | | | | | | | | | | | | |
| Upstream – exploration and production | $ | 924 |
| | | 33 | % | | | $ | 954 |
| | | 33 | % | | $ | (30 | ) | | (3 | )% | | | $ | 1,078 |
| | | 34 | % |
| Midstream – marketing and transportation | 626 |
| | | 22 | % | | | 589 |
| | | 20 | % | | 37 |
| | 6 | % | | | 654 |
| | | 21 | % |
| Downstream – refining | | 124 |
| | | 5 | % | | | 131 |
| | | 5 | % | | (7 | ) | | (5 | )% | | | 140 |
| | | 4 | % |
| Other non-services | | 55 |
| | | 2 | % | | | 75 |
| | | 3 | % | | (20 | ) | | (27 | )% | | | 57 |
| | | 2 | % |
| Oilfield services | | 825 |
| | | 29 | % | | | 879 |
| | | 30 | % | | (54 | ) | | (6 | )% | | | 959 |
| | | 30 | % |
| Energy service manufacturing | | 251 |
| | | 9 | % | | | 255 |
| | | 9 | % | | (4 | ) | | (2 | )% | | | 269 |
| | | 9 | % |
| Total oil and gas related | | 2,805 |
| | | 100 | % | | | 2,883 |
| | | 100 | % | | (78 | ) | | (3 | )% | | | 3,157 |
| | | 100 | % |
| Alternative energy | | 214 |
| | | | | | 222 |
| | | | | (8 | ) | | (4 | )% | | | 232 |
| | | |
| Total loans and leases | | 3,019 |
| | | | | | 3,105 |
| | | | | (86 | ) | | (3 | )% | | | 3,389 |
| | | |
| Unfunded lending commitments | | 2,364 |
| | | | | | 2,403 |
| | | | | (39 | ) | | (2 | )% | | | 2,451 |
| | | |
| Total credit exposure | | $ | 5,383 |
| | | | | | $ | 5,508 |
| | | | | $ | (125 | ) | | (2 | )% | | | $ | 5,840 |
| | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Private equity investments | | $ | 17 |
| | | | | | $ | 18 |
| | | | | $ | (1 | ) | | (6 | )% | | | $ | 20 |
| | | |
|
| | | | | | | | |
| Credit quality measures of oil and gas | | | | | |
| Classified loan ratio | 15.7 | % | | 11.3 | % | | 9.3 | % |
| Nonperforming loan ratio | 3.0 | % | | 2.3 | % | | 2.1 | % |
| Net charge-off ratio, annualized | 2.4 | % | | — | % | | 0.3 | % |
| |
1 | 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 decline of $86 million in energy-related loans from the second quarter was consistent with expectations and further attrition in the next several quarters is likely. Energy loan net charge-offs were $17 million in the third quarter, compared to none in the second quarter.
Generally consistent with expectations, the majority of loan downgrades in the third quarter reflected deterioration in the financial condition of oilfield services companies, and to a lesser degree a small number of downgrades in the upstream portfolio. Further downgrades are likely; however, the Company has established a substantial reserve for the portfolio.
ZIONS BANCORPORATION
Press Release – Page 4
October 19, 2015
Asset Quality
Net charge-offs were $31 million in the third quarter (including energy-related loans), or an annualized 0.31% of average loans, compared to $11 million, or an annualized 0.11% of average loans, in the second quarter. The Company provided $18.3 million for loan losses during the third quarter, compared to $0.6 million during the second quarter, largely due to continued weakness in the energy sector. Other credit quality measures were generally strong outside of the energy portfolio.
Nonperforming assets declined to $372 million at September 30, 2015 from $386 million at June 30, 2015. Classified loans increased slightly to $1.32 billion at September 30, 2015 from $1.29 billion at June 30, 2015. The ratio of nonperforming assets to loans and leases and other real estate owned declined to 0.92% at September 30, 2015, compared to 0.96% at June 30, 2015. The allowance for credit losses declined $11 million to $678 million, which was 1.69% of loans and leases at September 30, 2015, compared to $689 million, or 1.72% of loans and leases at June 30, 2015.
Deposits
Total deposits were $48.9 billion at September 30, 2015, essentially unchanged from the balance at June 30, 2015. Average total deposits increased $794 million to $48.9 billion for the third quarter of 2015, compared to $48.1 billion for the second quarter of 2015. Average noninterest bearing deposits increased $575 million to $21.6 billion for the third quarter, compared to $21.0 billion for the second quarter, and were 44% of average total deposits.
Debt and Shareholders’ Equity
On September 15, 2015, the Company redeemed at maturity approximately $112 million par amount of 6.0% subordinated and convertible subordinated notes. The total effective cost of this debt was approximately 17% during 2015; the higher effective cost was due to the amortization of debt discount. The Company expects to redeem at maturity on November 16, 2015 approximately $124 million par amount of similar 5.5% notes that currently have an effective cost of approximately 14%.
Tangible book value per common share increased to $27.42 at September 30, 2015, compared to $26.95 at June 30, 2015.
The estimated Basel III common equity tier 1 (“CET1”) capital ratio was 12.17% at September 30, 2015, compared to 12.00% at June 30, 2015. The fully phased-in ratio was not substantially different.
ZIONS BANCORPORATION
Press Release – Page 5
October 19, 2015
As reported separately on October 19, 2015, the Company will deploy up to $180 million of cash through a tender offer to purchase certain outstanding preferred stock and depositary shares.
Net Interest Income
Net interest income increased slightly to $425 million in the third quarter of 2015 from $424 million in the second quarter of 2015. The net interest margin decreased to 3.11% in the third quarter of 2015, compared to 3.18% in the second quarter of 2015. The decrease was due primarily to a greater proportion of cash and securities, which carry a lower yield than loans, and to reduced interest income on loans purchased from the FDIC in 2009.
Noninterest Income
Noninterest income for the third quarter of 2015 was $131 million; excluding gains and losses on securities and fair value and nonhedge derivative income, noninterest income was $129 million, compared to $132 million for the second quarter of 2015.
Noninterest Expense
Noninterest expense for the third quarter of 2015 was $396 million, compared to $404 million for the second quarter of 2015, and $439 million for the third quarter of 2014. Salaries and employee benefits decreased from the prior quarter primarily due to a normal seasonal variance attributed to annual incentive stock awards that are granted in the second quarter, and to a reduced accrual for incentive compensation that is linked to the Company’s stock price. Severance accruals included in salaries and employee benefits increased to $3.5 million in the third quarter, compared to $1.7 million in the second quarter.
The Company made meaningful progress with its corporate restructuring and cost initiatives during the quarter. The Company expects to achieve 50% of its target gross $120 million expense reduction by the end of 2015, to hold adjusted noninterest expense below $1.6 billion in 2015, and to report an efficiency ratio at or less than 70% for the second half of 2015. Details of the efficiency ratio calculation can be found later in this press release.
Income Taxes
The Company’s effective tax rate for the third quarter of 2015 was 28.8%, which is lower than the effective tax rate for the prior year third quarter of 35.6%. The decrease was primarily due to certain tax credits generated during the third quarter of 2015.
ZIONS BANCORPORATION
Press Release – Page 6
October 19, 2015
Supplemental Presentation and Conference Call
Zions has posted a supplemental presentation to its website, which will be used to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 19, 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 56565783, 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.
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
October 19, 2015
FINANCIAL HIGHLIGHTS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands, except share, per share, and ratio data) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| BALANCE SHEET | | | | | | | | | |
| Loans and leases, net of allowance | $ | 39,516,683 |
| | $ | 39,414,609 |
| | $ | 39,560,101 |
| | $ | 39,458,995 |
| | $ | 39,129,295 |
|
| Total assets | 58,410,927 |
| | 58,365,459 |
| | 57,555,931 |
| | 57,208,874 |
| | 55,458,870 |
|
| Deposits | 48,920,147 |
| | 48,937,124 |
| | 48,123,360 |
| | 47,848,075 |
| | 46,266,562 |
|
| Total shareholders’ equity | 7,638,095 |
| | 7,530,175 |
| | 7,454,298 |
| | 7,369,530 |
| | 7,322,159 |
|
| | | | | | | | | | |
| STATEMENT OF INCOME | | | | | | | | | |
| Net interest income | $ | 425,377 |
| | $ | 423,704 |
| | $ | 417,346 |
| | $ | 430,430 |
| | $ | 416,819 |
|
| Taxable-equivalent net interest income | 429,782 |
| | 428,015 |
| | 421,581 |
| | 434,789 |
| | 420,850 |
|
| Provision for loan losses | 18,262 |
| | 566 |
| | (1,494 | ) | | 11,587 |
| | (54,643 | ) |
| Total noninterest income | 130,813 |
| | 421 |
| | 121,822 |
| | 129,396 |
| | 116,071 |
|
| Total noninterest expense | 396,149 |
| | 404,100 |
| | 397,461 |
| | 422,666 |
| | 438,536 |
|
| Net earnings (loss) applicable to common shareholders | 84,238 |
| | (1,100 | ) | | 75,279 |
| | 66,761 |
| | 79,127 |
|
| | | | | | | | | | |
| PER COMMON SHARE | | | | | | | | | |
| Net earnings (loss) per diluted common share | $ | 0.41 |
| | $ | (0.01 | ) | | $ | 0.37 |
| | $ | 0.33 |
| | $ | 0.40 |
|
| Dividends | 0.06 |
| | 0.06 |
| | 0.04 |
| | 0.04 |
| | 0.04 |
|
Book value per common share 1 | 32.47 |
| | 32.03 |
| | 31.74 |
| | 31.35 |
| | 31.14 |
|
Tangible book value per common share 1 | 27.42 |
| | 26.95 |
| | 26.64 |
| | 26.23 |
| | 26.00 |
|
| | | | | | | | | | |
| SELECTED RATIOS | | | | | | | | | |
| Return on average assets | 0.69 | % | | 0.10 | % | | 0.66 | % | | 0.57 | % | | 0.69 | % |
| Return on average common equity | 5.02 | % | | (0.07 | )% | | 4.77 | % | | 4.06 | % | | 5.10 | % |
| Tangible return on average tangible common equity | 6.05 | % | | 0.03 | % | | 5.80 | % | | 4.95 | % | | 6.19 | % |
| Net interest margin | 3.11 | % | | 3.18 | % | | 3.22 | % | | 3.25 | % | | 3.20 | % |
| Efficiency ratio | 69.5 | % | | 71.4 | % | | 72.3 | % | | 74.1 | % | | 73.0 | % |
| Effective tax rate | 28.8 | % | | 28.3 | % | | 35.7 | % | | 34.8 | % | | 35.6 | % |
| Ratio of nonperforming assets to loans and leases and other real estate owned | 0.92 | % | | 0.96 | % | | 0.99 | % | | 0.81 | % | | 0.84 | % |
| Annualized ratio of net loan and lease charge-offs to average loans | 0.31 | % | | 0.11 | % | | (0.17 | )% | | 0.17 | % | | 0.11 | % |
Ratio of total allowance for credit losses to loans and leases outstanding 1 | 1.69 | % | | 1.72 | % | | 1.75 | % | | 1.71 | % | | 1.74 | % |
| | | | | | | | | | |
Capital Ratios 1 | | | | | | | | | |
| Tangible common equity ratio | 9.76 | % | | 9.58 | % | | 9.58 | % | | 9.48 | % | | 9.70 | % |
Basel III: 2 | | | | | | | | | |
| Common equity tier 1 capital | 12.17 | % | | 12.00 | % | | 11.76 | % | | | | |
| Tier 1 leverage | 11.63 | % | | 11.65 | % | | 11.75 | % | | | | |
| Tier 1 risk-based capital | 14.43 | % | | 14.26 | % | | 13.93 | % | | | | |
| Total risk-based capital | 16.48 | % | | 16.32 | % | | 15.97 | % | | | | |
| Basel I: | | | | | | | | | |
| Tier 1 common equity | | | | | | | 11.92 | % | | 11.86 | % |
| Tier 1 leverage | | | | | | | 11.82 | % | | 11.87 | % |
| Tier 1 risk-based capital | | | | | | | 14.47 | % | | 14.43 | % |
| Total risk-based capital | | | | | | | 16.27 | % | | 16.28 | % |
| | | | | | | | | | |
| Weighted average common and common-equivalent shares outstanding | 204,154,880 |
| | 202,887,762 |
| | 202,944,209 |
| | 203,277,500 |
| | 197,271,076 |
|
Common shares outstanding 1 | 204,278,594 |
| | 203,740,914 |
| | 203,192,991 |
| | 203,014,903 |
| | 202,898,491 |
|
| |
2 | Basel III capital ratios became effective January 1, 2015 and are based on a 2015 phase-in. |
ZIONS BANCORPORATION
Press Release – Page 8
October 19, 2015
CONSOLIDATED BALANCE SHEETS
|
| | | | | | | | | | | | | | | | | | | |
| (In thousands, except shares) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| | (Unaudited) | | (Unaudited) | | (Unaudited) | | | | (Unaudited) |
| ASSETS | | | | | | | | | |
| Cash and due from banks | $ | 602,694 |
| | $ | 758,238 |
| | $ | 720,858 |
| | $ | 841,942 |
| | $ | 585,672 |
|
| Money market investments: | | | | | | | | | |
| Interest-bearing deposits | 6,558,678 |
| | 7,661,311 |
| | 6,791,762 |
| | 7,178,097 |
| | 7,467,884 |
|
| Federal funds sold and security resell agreements | 1,325,501 |
| | 1,404,246 |
| | 1,519,352 |
| | 1,386,291 |
| | 355,844 |
|
| Investment securities: | | | | | | | | | |
| Held-to-maturity, at adjusted cost (approximate fair value $553,088, $578,327, $602,355, $677,196, and $642,529) | 544,168 |
| | 570,869 |
| | 590,950 |
| | 647,252 |
| | 609,758 |
|
| Available-for-sale, at fair value | 6,000,011 |
| | 4,652,415 |
| | 4,450,502 |
| | 3,844,248 |
| | 3,563,408 |
|
| Trading account, at fair value | 73,521 |
| | 74,519 |
| | 71,392 |
| | 70,601 |
| | 55,419 |
|
| | 6,617,700 |
| | 5,297,803 |
| | 5,112,844 |
| | 4,562,101 |
| | 4,228,585 |
|
| | | | | | | | | | |
| Loans held for sale | 139,122 |
| | 152,448 |
| | 128,946 |
| | 132,504 |
| | 109,139 |
|
| | | | | | | | | | |
| Loans and leases, net of unearned income and fees | 40,113,123 |
| | 40,023,984 |
| | 40,180,114 |
| | 40,063,658 |
| | 39,739,572 |
|
| Less allowance for loan losses | 596,440 |
| | 609,375 |
| | 620,013 |
| | 604,663 |
| | 610,277 |
|
| Loans, net of allowance | 39,516,683 |
| | 39,414,609 |
| | 39,560,101 |
| | 39,458,995 |
| | 39,129,295 |
|
| | | | | | | | | | |
| Other noninterest-bearing investments | 851,225 |
| | 863,443 |
| | 870,125 |
| | 865,950 |
| | 855,743 |
|
| Premises and equipment, net | 873,800 |
| | 856,577 |
| | 844,900 |
| | 829,809 |
| | 811,127 |
|
| Goodwill | 1,014,129 |
| | 1,014,129 |
| | 1,014,129 |
| | 1,014,129 |
| | 1,014,129 |
|
| Core deposit and other intangibles | 18,546 |
| | 20,843 |
| | 23,162 |
| | 25,520 |
| | 28,160 |
|
| Other real estate owned | 12,799 |
| | 13,269 |
| | 17,256 |
| | 18,916 |
| | 27,418 |
|
| Other assets | 880,050 |
| | 908,543 |
| | 952,496 |
| | 894,620 |
| | 845,874 |
|
| | $ | 58,410,927 |
| | $ | 58,365,459 |
| | $ | 57,555,931 |
| | $ | 57,208,874 |
| | $ | 55,458,870 |
|
| | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing demand | $ | 21,572,022 |
| | $ | 21,557,584 |
| | $ | 20,854,630 |
| | $ | 20,529,124 |
| | $ | 19,771,631 |
|
| Interest-bearing: | | | | | | | | | |
| Savings and money market | 24,690,359 |
| | 24,744,288 |
| | 24,540,927 |
| | 24,583,636 |
| | 23,742,911 |
|
| Time | 2,216,206 |
| | 2,263,146 |
| | 2,344,818 |
| | 2,406,924 |
| | 2,441,756 |
|
| Foreign | 441,560 |
| | 372,106 |
| | 382,985 |
| | 328,391 |
| | 310,264 |
|
| | 48,920,147 |
| | 48,937,124 |
| | 48,123,360 |
| | 47,848,075 |
| | 46,266,562 |
|
| | | | | | | | | | |
| Federal funds and other short-term borrowings | 272,391 |
| | 227,124 |
| | 203,597 |
| | 244,223 |
| | 191,798 |
|
| Long-term debt | 944,752 |
| | 1,050,938 |
| | 1,089,321 |
| | 1,092,282 |
| | 1,113,677 |
|
| Reserve for unfunded lending commitments | 81,389 |
| | 79,961 |
| | 82,287 |
| | 81,076 |
| | 79,377 |
|
| Other liabilities | 554,153 |
| | 540,137 |
| | 603,068 |
| | 573,688 |
| | 485,297 |
|
| Total liabilities | 50,772,832 |
| | 50,835,284 |
| | 50,101,633 |
| | 49,839,344 |
| | 48,136,711 |
|
| | | | | | | | | | |
| Shareholders’ equity: | | | | | | | | | |
| Preferred stock, without par value, authorized 4,400,000 shares | 1,004,159 |
| | 1,004,032 |
| | 1,004,032 |
| | 1,004,011 |
| | 1,004,006 |
|
| Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 204,278,594, 203,740,914, 203,192,991, 203,014,903, and 202,898,491 shares | 4,756,288 |
| | 4,738,272 |
| | 4,728,556 |
| | 4,723,855 |
| | 4,717,295 |
|
| Retained earnings | 1,894,623 |
| | 1,823,043 |
| | 1,836,619 |
| | 1,769,705 |
| | 1,711,785 |
|
| Accumulated other comprehensive income (loss) | (16,975 | ) | | (35,172 | ) | | (114,909 | ) | | (128,041 | ) | | (110,927 | ) |
| Total shareholders’ equity | 7,638,095 |
| | 7,530,175 |
| | 7,454,298 |
| | 7,369,530 |
| | 7,322,159 |
|
| | $ | 58,410,927 |
| | $ | 58,365,459 |
| | $ | 57,555,931 |
| | $ | 57,208,874 |
| | $ | 55,458,870 |
|
ZIONS BANCORPORATION
Press Release – Page 9
October 19, 2015
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands, except per share amounts) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Interest income: | | | | | | | | | |
| Interest and fees on loans | $ | 419,981 |
| | $ | 420,642 |
| | $ | 415,755 |
| | $ | 431,084 |
| | $ | 430,416 |
|
| Interest on money market investments | 6,018 |
| | 5,785 |
| | 5,218 |
| | 5,913 |
| | 5,483 |
|
| Interest on securities | 30,231 |
| | 28,809 |
| | 27,473 |
| | 24,963 |
| | 24,377 |
|
| Total interest income | 456,230 |
| | 455,236 |
| | 448,446 |
| | 461,960 |
| | 460,276 |
|
| Interest expense: | | | | | | | | | |
| Interest on deposits | 12,542 |
| | 12,321 |
| | 12,104 |
| | 12,548 |
| | 12,313 |
|
| Interest on short- and long-term borrowings | 18,311 |
| | 19,211 |
| | 18,996 |
| | 18,982 |
| | 31,144 |
|
| Total interest expense | 30,853 |
| | 31,532 |
| | 31,100 |
| | 31,530 |
| | 43,457 |
|
| Net interest income | 425,377 |
| | 423,704 |
| | 417,346 |
| | 430,430 |
| | 416,819 |
|
| Provision for loan losses | 18,262 |
| | 566 |
| | (1,494 | ) | | 11,587 |
| | (54,643 | ) |
| Net interest income after provision for loan losses | 407,115 |
| | 423,138 |
| | 418,840 |
| | 418,843 |
| | 471,462 |
|
| | | | | | | | | | |
| Noninterest income: | | | | | | | | | |
| Service charges and fees on deposit accounts | 43,196 |
| | 41,616 |
| | 41,194 |
| | 42,224 |
| | 43,468 |
|
| Other service charges, commissions and fees | 52,837 |
| | 51,705 |
| | 47,486 |
| | 50,130 |
| | 51,639 |
|
| Wealth management income | 7,496 |
| | 8,160 |
| | 7,615 |
| | 8,078 |
| | 7,438 |
|
| Loan sales and servicing income | 7,728 |
| | 8,382 |
| | 7,706 |
| | 7,134 |
| | 7,592 |
|
| Capital markets and foreign exchange | 6,624 |
| | 7,275 |
| | 5,501 |
| | 6,266 |
| | 5,400 |
|
| Dividends and other investment income | 8,449 |
| | 9,343 |
| | 9,372 |
| | 16,479 |
| | 11,324 |
|
| Fair value and nonhedge derivative income (loss) | (1,555 | ) | | 1,844 |
| | (1,088 | ) | | (961 | ) | | 44 |
|
| Equity securities gains, net | 3,630 |
| | 4,839 |
| | 3,353 |
| | 9,606 |
| | 440 |
|
| Fixed income securities losses, net | (53 | ) | | (138,436 | ) | | (239 | ) | | (11,620 | ) | | (13,901 | ) |
| Other | 2,461 |
| | 5,693 |
| | 922 |
| | 2,060 |
| | 2,627 |
|
| Total noninterest income | 130,813 |
| | 421 |
| | 121,822 |
| | 129,396 |
| | 116,071 |
|
| | | | | | | | | | |
| Noninterest expense: | | | | | | | | | |
| Salaries and employee benefits | 242,023 |
| | 251,133 |
| | 243,519 |
| | 238,731 |
| | 245,518 |
|
| Occupancy, net | 29,477 |
| | 30,095 |
| | 29,339 |
| | 29,962 |
| | 28,495 |
|
| Furniture, equipment and software | 30,416 |
| | 31,247 |
| | 29,713 |
| | 30,858 |
| | 28,524 |
|
| Other real estate expense | (40 | ) | | (445 | ) | | 374 |
| | (3,467 | ) | | 875 |
|
| Credit-related expense | 6,914 |
| | 8,106 |
| | 5,939 |
| | 7,518 |
| | 6,508 |
|
| Provision for unfunded lending commitments | 1,428 |
| | (2,326 | ) | | 1,211 |
| | 1,699 |
| | (16,095 | ) |
| Professional and legal services | 12,699 |
| | 13,110 |
| | 11,483 |
| | 26,257 |
| | 16,588 |
|
| Advertising | 6,136 |
| | 6,511 |
| | 6,975 |
| | 5,805 |
| | 6,094 |
|
| FDIC premiums | 8,500 |
| | 8,609 |
| | 8,119 |
| | 8,031 |
| | 8,204 |
|
| Amortization of core deposit and other intangibles | 2,298 |
| | 2,318 |
| | 2,358 |
| | 2,640 |
| | 2,665 |
|
| Debt extinguishment cost | — |
| | 2,395 |
| | — |
| | — |
| | 44,422 |
|
| Other | 56,298 |
| | 53,347 |
| | 58,431 |
| | 74,632 |
| | 66,738 |
|
| Total noninterest expense | 396,149 |
| | 404,100 |
| | 397,461 |
| | 422,666 |
| | 438,536 |
|
| Income before income taxes | 141,779 |
| | 19,459 |
| | 143,201 |
| | 125,573 |
| | 148,997 |
|
| Income taxes | 40,780 |
| | 5,499 |
| | 51,176 |
| | 43,759 |
| | 53,109 |
|
| Net income | 100,999 |
| | 13,960 |
| | 92,025 |
| | 81,814 |
| | 95,888 |
|
| Preferred stock dividends | (16,761 | ) | | (15,060 | ) | | (16,746 | ) | | (15,053 | ) | | (16,761 | ) |
| Net earnings (loss) applicable to common shareholders | $ | 84,238 |
| | $ | (1,100 | ) | | $ | 75,279 |
| | $ | 66,761 |
| | $ | 79,127 |
|
| | | | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | | | |
| Basic shares | 203,668 |
| | 202,888 |
| | 202,603 |
| | 202,783 |
| | 196,687 |
|
| Diluted shares | 204,155 |
| | 202,888 |
| | 202,944 |
| | 203,278 |
| | 197,271 |
|
| Net earnings (loss) per common share: | | | | | | | | | |
| Basic | $ | 0.41 |
| | $ | (0.01 | ) | | $ | 0.37 |
| | $ | 0.33 |
| | $ | 0.40 |
|
| Diluted | 0.41 |
| | (0.01 | ) | | 0.37 |
| | 0.33 |
| | 0.40 |
|
ZIONS BANCORPORATION
Press Release – Page 10
October 19, 2015
Note: FDIC-supported/PCI loans previously disclosed separately at September 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) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Commercial: | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 13,035 |
| | | | $ | 13,111 |
| | | | $ | 13,264 |
| | | | $ | 13,163 |
| | | | $ | 12,874 |
| |
| Leasing | | 427 |
| | | | 402 |
| | | | 407 |
| | | | 409 |
| | | | 405 |
| |
| Owner occupied | | 7,141 |
| | | | 7,277 |
| | | | 7,310 |
| | | | 7,351 |
| | | | 7,430 |
| |
| Municipal | | 600 |
| | | | 589 |
| | | | 555 |
| | | | 521 |
| | | | 518 |
| |
| Total commercial | | 21,203 |
| | | | 21,379 |
| | | | 21,536 |
| | | | 21,444 |
| | | | 21,227 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | 2,214 |
| | | | 2,062 |
| | | | 2,045 |
| | | | 1,986 |
| | | | 1,895 |
| |
| Term | | 8,089 |
| | | | 8,058 |
| | | | 8,088 |
| | | | 8,127 |
| | | | 8,259 |
| |
| Total commercial real estate | | 10,303 |
| | | | 10,120 |
| | | | 10,133 |
| | | | 10,113 |
| | | | 10,154 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | |
| Home equity credit line | | 2,347 |
| | | | 2,348 |
| | | | 2,315 |
| | | | 2,321 |
| | | | 2,266 |
| |
| 1-4 family residential | | 5,269 |
| | | | 5,194 |
| | | | 5,213 |
| | | | 5,201 |
| | | | 5,156 |
| |
| Construction and other consumer real estate | | 370 |
| | | | 372 |
| | | | 373 |
| | | | 371 |
| | | | 350 |
| |
| Bankcard and other revolving plans | | 428 |
| | | | 409 |
| | | | 407 |
| | | | 401 |
| | | | 389 |
| |
| Other | | 193 |
| | | | 202 |
| | | | 203 |
| | | | 213 |
| | | | 198 |
| |
| Total consumer | | 8,607 |
| | | | 8,525 |
| | | | 8,511 |
| | | | 8,507 |
| | | | 8,359 |
| |
| Total loans | | $ | 40,113 |
| | | | $ | 40,024 |
| | | | $ | 40,180 |
| | | | $ | 40,064 |
| | | | $ | 39,740 |
| |
Nonperforming Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (Amounts in thousands) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| | | | | | | | | | |
| Nonaccrual loans | $ | 359,272 |
| | $ | 372,830 |
| | $ | 382,066 |
| | $ | 306,648 |
| | $ | 307,230 |
|
| Other real estate owned | 12,799 |
| | 13,269 |
| | 17,256 |
| | 18,916 |
| | 27,418 |
|
| Total nonperforming assets | $ | 372,071 |
| | $ | 386,099 |
| | $ | 399,322 |
| | $ | 325,564 |
| | $ | 334,648 |
|
| | | | | | | | | | |
Ratio of nonperforming assets to loans1 and leases and other real estate owned | 0.92 | % | | 0.96 | % | | 0.99 | % | | 0.81 | % | | 0.84 | % |
| | | | | | | | | | |
| Accruing loans past due 90 days or more | $ | 34,857 |
| | $ | 27,204 |
| | $ | 31,552 |
| | $ | 29,228 |
| | $ | 30,755 |
|
Ratio of accruing loans past due 90 days or more to loans1 and leases | 0.09 | % | | 0.07 | % | | 0.08 | % | | 0.07 | % | | 0.08 | % |
| | | | | | | | | | |
| Nonaccrual loans and accruing loans past due 90 days or more | $ | 394,129 |
| | $ | 400,034 |
| | $ | 413,618 |
| | $ | 335,876 |
| | $ | 337,985 |
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases | 0.98 | % | | 1.00 | % | | 1.03 | % | | 0.84 | % | | 0.85 | % |
| | | | | | | | | | |
| Accruing loans past due 30-89 days | $ | 118,316 |
| | $ | 124,955 |
| | $ | 97,242 |
| | $ | 86,488 |
| | $ | 89,081 |
|
| | | | | | | | | | |
| Restructured loans included in nonaccrual loans | 108,387 |
| | 118,358 |
| | 110,364 |
| | 97,779 |
| | 109,673 |
|
| Restructured loans on accrual | 178,136 |
| | 180,146 |
| | 199,065 |
| | 245,550 |
| | 264,994 |
|
| | | | | | | | | | |
| Classified loans | 1,323,068 |
| | 1,293,022 |
| | 1,268,981 |
| | 1,147,106 |
| | 1,187,407 |
|
1 Includes loans held for sale.
ZIONS BANCORPORATION
Press Release – Page 11
October 19, 2015
Allowance for Credit Losses
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (Amounts in thousands) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | $ | 609,375 |
| | $ | 620,013 |
| | $ | 604,663 |
| | $ | 610,277 |
| | $ | 675,907 |
|
| Add: | | | | | | | | | |
| Provision for losses | 18,262 |
| | 566 |
| | (1,494 | ) | | 11,587 |
| | (54,643 | ) |
| Adjustment for FDIC-supported/PCI loans | — |
| | 38 |
| | (38 | ) | | (19 | ) | | (25 | ) |
| Deduct: | | | | | | | | | |
| Gross loan and lease charge-offs | (42,359 | ) | | (31,048 | ) | | (20,188 | ) | | (35,544 | ) | | (26,471 | ) |
| Recoveries | 11,162 |
| | 19,806 |
| | 37,070 |
| | 18,362 |
| | 15,509 |
|
| Net loan and lease (charge-offs) recoveries | (31,197 | ) | | (11,242 | ) | | 16,882 |
| | (17,182 | ) | | (10,962 | ) |
| Balance at end of period | $ | 596,440 |
| | $ | 609,375 |
| | $ | 620,013 |
| | $ | 604,663 |
| | $ | 610,277 |
|
| | | | | | | | | | |
| Ratio of allowance for loan losses to loans and leases, at period end | 1.49 | % | | 1.52 | % | | 1.54 | % | | 1.51 | % | | 1.54 | % |
| | | | | | | | | | |
| Ratio of allowance for loan losses to nonperforming loans, at period end | 166.01 | % | | 163.45 | % | | 162.28 | % | | 197.18 | % | | 198.64 | % |
| | | | | | | | | | |
| Annualized ratio of net loan and lease charge-offs to average loans | 0.31 | % | | 0.11 | % | | (0.17 | )% | | 0.17 | % | | 0.11 | % |
| | | | | | | | | | |
| Reserve for Unfunded Lending Commitments | | | | | | | | | |
| Balance at beginning of period | $ | 79,961 |
| | $ | 82,287 |
| | $ | 81,076 |
| | $ | 79,377 |
| | $ | 95,472 |
|
| Provision charged (credited) to earnings | 1,428 |
| | (2,326 | ) | | 1,211 |
| | 1,699 |
| | (16,095 | ) |
| Balance at end of period | $ | 81,389 |
| | $ | 79,961 |
| | $ | 82,287 |
| | $ | 81,076 |
| | $ | 79,377 |
|
| | | | | | | | | | |
| Total Allowance for Credit Losses | | | | | | | | | |
| Allowance for loan losses | $ | 596,440 |
| | $ | 609,375 |
| | $ | 620,013 |
| | $ | 604,663 |
| | $ | 610,277 |
|
| Reserve for unfunded lending commitments | 81,389 |
| | 79,961 |
| | 82,287 |
| | 81,076 |
| | 79,377 |
|
| Total allowance for credit losses | $ | 677,829 |
| | $ | 689,336 |
| | $ | 702,300 |
| | $ | 685,739 |
| | $ | 689,654 |
|
| | | | | | | | | | |
| Ratio of total allowance for credit losses to loans and leases outstanding, at period end | 1.69 | % | | 1.72 | % | | 1.75 | % | | 1.71 | % | | 1.74 | % |
ZIONS BANCORPORATION
Press Release – Page 12
October 19, 2015
Nonaccrual Loans by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In millions) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| | | | | | | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | 167 |
| | | | 165 |
| | | | 163 |
| | | | 106 |
| | | | 88 |
| |
| Leasing | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | 1 |
| |
| Owner occupied | | 77 |
| | | | 89 |
| | | | 98 |
| | | | 87 |
| | | | 98 |
| |
| Municipal | | 1 |
| | | | 1 |
| | | | 1 |
| | | | 1 |
| | | | 8 |
| |
| Total commercial | | 245 |
| | | | 255 |
| | | | 262 |
| | | | 194 |
| | | | 195 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | 15 |
| | | | 20 |
| | | | 22 |
| | | | 24 |
| | | | 25 |
| |
| Term | | 39 |
| | | | 44 |
| | | | 38 |
| | | | 25 |
| | | | 30 |
| |
| Total commercial real estate | | 54 |
| | | | 64 |
| | | | 60 |
| | | | 49 |
| | | | 55 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | |
| Home equity credit line | | 10 |
| | | | 9 |
| | | | 10 |
| | | | 12 |
| | | | 12 |
| |
| 1-4 family residential | | 48 |
| | | | 43 |
| | | | 48 |
| | | | 50 |
| | | | 43 |
| |
| Construction and other consumer real estate | | 1 |
| | | | 1 |
| | | | 2 |
| | | | 2 |
| | | | 2 |
| |
| Bankcard and other revolving plans | | 1 |
| | | | 1 |
| | | | — |
| | | | — |
| | | | — |
| |
| Other | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Total consumer | | 60 |
| | | | 54 |
| | | | 60 |
| | | | 64 |
| | | | 57 |
| |
| Total nonaccrual loans | | $ | 359 |
| | | | $ | 373 |
| | | | $ | 382 |
| | | | $ | 307 |
| | | | $ | 307 |
| |
Net Charge-Offs by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In millions) | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Commercial: | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 30 |
| | | | $ | 13 |
| | | | $ | (5 | ) | | | | $ | 18 |
| | | | $ | 9 |
| |
| Leasing | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Owner occupied | | 3 |
| | | | (3 | ) | | | | — |
| | | | — |
| | | | 2 |
| |
| Municipal | | — |
| | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Total commercial | | 33 |
| | | | 10 |
| | | | (5 | ) | | | | 18 |
| | | | 11 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | (2 | ) | | | | (1 | ) | | | | (3 | ) | | | | (1 | ) | | | | (2 | ) | |
| Term | | (1 | ) | | | | 2 |
| | | | (10 | ) | | | | (1 | ) | | | | 2 |
| |
| Total commercial real estate | | (3 | ) | | | | 1 |
| | | | (13 | ) | | | | (2 | ) | | | | — |
| |
| | | | | | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | | | | | |
| Home equity credit line | | 1 |
| | | | — |
| | | | (1 | ) | | | | — |
| | | | — |
| |
| 1-4 family residential | | — |
| | | | — |
| | | | 1 |
| | | | 1 |
| | | | (1 | ) | |
| Construction and other consumer real estate | | (1 | ) | | | | — |
| | | | — |
| | | | — |
| | | | — |
| |
| Bankcard and other revolving plans | | — |
| | | | 1 |
| | | | 1 |
| | | | — |
| | | | 1 |
| |
| Other | | 1 |
| | | | (1 | ) | | | | — |
| | | | — |
| | | | — |
| |
| Total consumer loans | | 1 |
| | | | — |
| | | | 1 |
| | | | 1 |
| | | | — |
| |
| Total net charge-offs (recoveries) | | $ | 31 |
| | | | $ | 11 |
| | | | $ | (17 | ) | | | | $ | 17 |
| | | | $ | 11 |
| |
ZIONS BANCORPORATION
Press Release – Page 13
October 19, 2015
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| (In thousands) | Average balance | | Average yield/rate | | Average balance | | Average yield/rate | | Average balance | | Average yield/rate |
| ASSETS | | | | | | | | | | | |
| Money market investments | $ | 8,775,823 |
| | 0.27 | % | | $ | 8,414,602 |
| | 0.28 | % | | $ | 8,013,355 |
| | 0.26 | % |
| Securities: | | | | | | | | | | | |
| Held-to-maturity | 553,615 |
| | 5.07 | % | | 583,349 |
| | 5.06 | % | | 632,927 |
| | 5.12 | % |
| Available-for-sale | 5,254,986 |
| | 1.85 | % | | 4,585,760 |
| | 1.99 | % | | 4,080,004 |
| | 2.06 | % |
| Trading account | 47,235 |
| | 3.74 | % | | 76,706 |
| | 3.19 | % | | 69,910 |
| | 3.47 | % |
| Total securities | 5,855,836 |
| | 2.17 | % | | 5,245,815 |
| | 2.35 | % | | 4,782,841 |
| | 2.49 | % |
| | | | | | | | | | | | |
| Loans held for sale | 131,113 |
| | 3.70 | % | | 115,377 |
| | 3.48 | % | | 105,279 |
| | 3.52 | % |
Loans 1: | | | | | | | | | | | |
| Commercial | 21,289,641 |
| | 4.15 | % | | 21,527,723 |
| | 4.22 | % | | 21,576,463 |
| | 4.20 | % |
| Commercial real estate | 10,170,539 |
| | 4.47 | % | | 10,089,092 |
| | 4.47 | % | | 10,084,874 |
| | 4.46 | % |
| Consumer | 8,565,075 |
| | 3.90 | % | | 8,514,519 |
| | 3.91 | % | | 8,517,670 |
| | 3.95 | % |
| Total loans | 40,025,255 |
| | 4.18 | % | | 40,131,334 |
| | 4.22 | % | | 40,179,007 |
| | 4.21 | % |
| Total interest-earning assets | 54,788,027 |
| | 3.34 | % | | 53,907,128 |
| | 3.42 | % | | 53,080,482 |
| | 3.46 | % |
| Cash and due from banks | 583,936 |
| | | | 591,347 |
| | | | 743,618 |
| | |
| Allowance for loan losses | (602,677 | ) | | | | (621,348 | ) | | | | (609,233 | ) | | |
| Goodwill | 1,014,129 |
| | | | 1,014,129 |
| | | | 1,014,129 |
| | |
| Core deposit and other intangibles | 19,726 |
| | | | 22,135 |
| | | | 24,355 |
| | |
| Other assets | 2,602,639 |
| | | | 2,564,121 |
| | | | 2,564,199 |
| | |
| Total assets | $ | 58,405,780 |
| | | | $ | 57,477,512 |
| | | | $ | 56,817,550 |
| | |
| | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings and money market | $ | 24,676,897 |
| | 0.16 | % | | $ | 24,514,516 |
| | 0.16 | % | | $ | 24,214,265 |
| | 0.16 | % |
| Time | 2,242,064 |
| | 0.43 | % | | 2,300,593 |
| | 0.43 | % | | 2,372,492 |
| | 0.43 | % |
| Foreign | 441,670 |
| | 0.18 | % | | 325,640 |
| | 0.14 | % | | 351,873 |
| | 0.14 | % |
| Total interest-bearing deposits | 27,360,631 |
| | 0.18 | % | | 27,140,749 |
| | 0.18 | % | | 26,938,630 |
| | 0.18 | % |
| Borrowed funds: | | | | | | | | | | | |
| Federal funds and other short-term borrowings | 211,322 |
| | 0.14 | % | | 214,287 |
| | 0.14 | % | | 219,747 |
| | 0.14 | % |
| Long-term debt | 1,033,818 |
| | 7.00 | % | | 1,081,785 |
| | 7.10 | % | | 1,091,706 |
| | 7.03 | % |
| Total borrowed funds | 1,245,140 |
| | 5.83 | % | | 1,296,072 |
| | 5.95 | % | | 1,311,453 |
| | 5.87 | % |
| Total interest-bearing liabilities | 28,605,771 |
| | 0.43 | % | | 28,436,821 |
| | 0.44 | % | | 28,250,083 |
| | 0.45 | % |
| Noninterest-bearing deposits | 21,558,557 |
| | | | 20,984,073 |
| | | | 20,545,395 |
| | |
| Other liabilities | 581,880 |
| | | | 559,722 |
| | | | 612,752 |
| | |
| Total liabilities | 50,746,208 |
| | | | 49,980,616 |
| | | | 49,408,230 |
| | |
| Shareholders’ equity: | | | | | | | | | | | |
| Preferred equity | 1,004,059 |
| | | | 1,004,031 |
| | | | 1,004,015 |
| | |
| Common equity | 6,655,513 |
| | | | 6,492,865 |
| | | | 6,405,305 |
| | |
| Total shareholders’ equity | 7,659,572 |
| | | | 7,496,896 |
| | | | 7,409,320 |
| | |
| Total liabilities and shareholders’ equity | $ | 58,405,780 |
| | | | $ | 57,477,512 |
| | | | $ | 56,817,550 |
| | |
| | | | | | | | | | | | |
| Spread on average interest-bearing funds | | | 2.91 | % | | | | 2.98 | % | | | | 3.01 | % |
| | | | | | | | | | | | |
| Net yield on interest-earning assets | | | 3.11 | % | | | | 3.18 | % | | | | 3.22 | % |
1 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
ZIONS BANCORPORATION
Press Release – Page 14
October 19, 2015
GAAP to Non-GAAP Reconciliations
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share amounts) | | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Tangible Book Value per Common Share | | | | | | | | |
| | | | | | | | | | | |
| Total shareholders’ equity (GAAP) | | $ | 7,638,095 |
| | $ | 7,530,175 |
| | $ | 7,454,298 |
| | $ | 7,369,530 |
| | $ | 7,322,159 |
|
| Preferred stock | | (1,004,159 | ) | | (1,004,032 | ) | | (1,004,032 | ) | | (1,004,011 | ) | | (1,004,006 | ) |
| Goodwill | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) |
| Core deposit and other intangibles | | (18,546 | ) | | (20,843 | ) | | (23,162 | ) | | (25,520 | ) | | (28,160 | ) |
| Tangible common equity (non-GAAP) | (a) | $ | 5,601,261 |
| | $ | 5,491,171 |
| | $ | 5,412,975 |
| | $ | 5,325,870 |
| | $ | 5,275,864 |
|
| | | | | | | | | | | |
| Common shares outstanding | (b) | 204,279 |
| | 203,741 |
| | 203,193 |
| | 203,015 |
| | 202,898 |
|
| | | | | | | | | | | |
| Tangible book value per common share (non-GAAP) | (a/b) | $ | 27.42 |
| | $ | 26.95 |
| | $ | 26.64 |
| | $ | 26.23 |
| | $ | 26.00 |
|
| | | | | | | | | | | |
| | | Three Months Ended |
| (Dollar amounts in thousands) | | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Tangible Return on Average Tangible Common Equity | | | | | | | | |
| | | | | | | | | | | |
| Net earnings (loss) applicable to common shareholders (GAAP) | | $ | 84,238 |
| | $ | (1,100 | ) | | $ | 75,279 |
| | $ | 66,761 |
| | $ | 79,127 |
|
| | | | | | | | | | | |
| Adjustments, net of tax: | | | | | | | | | | |
| Amortization of core deposit and other intangibles | | 1,461 |
| | 1,472 |
| | 1,496 |
| | 1,676 |
| | 1,690 |
|
| Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) | (a) | $ | 85,699 |
| | $ | 372 |
| | $ | 76,775 |
| | $ | 68,437 |
| | $ | 80,817 |
|
| | | | | | | | | | | |
| Average common equity (GAAP) | | $ | 6,655,513 |
| | $ | 6,492,865 |
| | $ | 6,405,305 |
| | $ | 6,521,187 |
| | $ | 6,221,344 |
|
| Average goodwill | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) | | (1,014,129 | ) |
| Average core deposit and other intangibles | | (19,726 | ) | | (22,135 | ) | | (24,355 | ) | | (26,848 | ) | | (29,535 | ) |
| Average tangible common equity (non-GAAP) | (b) | $ | 5,621,658 |
| | $ | 5,456,601 |
| | $ | 5,366,821 |
| | $ | 5,480,210 |
| | $ | 5,177,680 |
|
| | | | | | | | | | | |
| Number of days in quarter | (c) | 92 |
| | 91 |
| | 90 |
| | 92 |
| | 92 |
|
| Number of days in year | (d) | 365 |
| | 365 |
| | 365 |
| | 365 |
| | 365 |
|
| | | | | | | | | | | |
| Tangible return on average tangible common equity (non-GAAP) | (a/b/c*d) | 6.05 | % | | 0.03 | % | | 5.80 | % | | 4.95 | % | | 6.19 | % |
ZIONS BANCORPORATION
Press Release – Page 15
October 19, 2015
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| (Dollar amounts in thousands) | | September 30,
2015 | | June 30,
2015 | | March 31,
2015 | | December 31,
2014 | | September 30,
2014 |
| Efficiency Ratio | | | | | | | | | | |
| | | | | | | | | | | |
| Noninterest expense (GAAP) | (a) | $ | 396,149 |
| | $ | 404,100 |
| | $ | 397,461 |
| | $ | 422,666 |
| | $ | 438,536 |
|
| Adjustments: | | | | | | | | | | |
| Severance costs | | 3,464 |
| | 1,707 |
| | 2,253 |
| | 1,747 |
| | 4,919 |
|
| Other real estate expense | | (40 | ) | | (445 | ) | | 374 |
| | (3,467 | ) | | 875 |
|
| Provision for unfunded lending commitments | 1,428 |
| | (2,326 | ) | | 1,211 |
| | 1,699 |
| | (16,095 | ) |
| Debt extinguishment cost | | — |
| | 2,395 |
| | — |
| | — |
| | 44,422 |
|
| Amortization of core deposit and other intangibles | | 2,298 |
| | 2,318 |
| | 2,358 |
| | 2,640 |
| | 2,665 |
|
| Restructuring costs | | 833 |
| | 650 |
| | — |
| | — |
| | — |
|
| Total adjustments | | 7,983 |
| | 4,299 |
| | 6,196 |
| | 2,619 |
| | 36,786 |
|
| | | | | | | | | | | |
| Add-back of adjustments | (b) | (7,983 | ) |
| (4,299 | ) |
| (6,196 | ) |
| (2,619 | ) |
| (36,786 | ) |
| Adjusted noninterest expense (non-GAAP) | (a+b)=(c) | $ | 388,166 |
|
| $ | 399,801 |
|
| $ | 391,265 |
|
| $ | 420,047 |
|
| $ | 401,750 |
|
| | | | | | | | | | | |
| Taxable-equivalent net interest income (GAAP) | (d) | $ | 429,782 |
| | $ | 428,015 |
| | $ | 421,581 |
| | $ | 434,789 |
| | $ | 420,850 |
|
| Noninterest income (GAAP) | (e) | 130,813 |
| | 421 |
| | 121,822 |
| | 129,396 |
| | 116,071 |
|
| Adjustments: | | | | | | | | | | |
| Fair value and nonhedge derivative income (loss) | (1,555 | ) | | 1,844 |
| | (1,088 | ) | | (961 | ) | | 44 |
|
| Equity securities gains, net | | 3,630 |
| | 4,839 |
| | 3,353 |
| | 9,606 |
| | 440 |
|
| Fixed income securities losses, net | | (53 | ) | | (138,436 | ) | | (239 | ) | | (11,620 | ) | | (13,901 | ) |
| Total adjustments | | 2,022 |
| | (131,753 | ) | | 2,026 |
| | (2,975 | ) | | (13,417 | ) |
| | | | | | | | | | | |
| Add-back of adjustments | (f) | (2,022 | ) |
| 131,753 |
|
| (2,026 | ) |
| 2,975 |
|
| 13,417 |
|
| Adjusted taxable-equivalent net interest income and noninterest income (non-GAAP) | (d+e+f)=(g) | $ | 558,573 |
|
| $ | 560,189 |
|
| $ | 541,377 |
|
| $ | 567,160 |
|
| $ | 550,338 |
|
| | | | | | | | | | | |
| Efficiency ratio | (c/g) | 69.5 | % |
| 71.4 | % |
| 72.3 | % |
| 74.1 | % |
| 73.0 | % |
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.
