ZIONS BANCORPORATION, N.A.
Press Release – Page 1
October 21, 2019
|
| |
Zions Bancorporation, N.A.
One South Main
Salt Lake City, UT 84133
October 21, 2019 | |
| www.zionsbancorporation.com |
Third Quarter 2019 Financial Results: FOR IMMEDIATE RELEASE
Investor and Media Contact: James Abbott (801) 844-7637
|
|
| Zions Bancorporation, N.A. Reports: 3Q19 Net Earnings¹ of $214 million, diluted EPS of $1.17 |
compared with 3Q18 Net Earnings¹ of $215 million, diluted EPS of $1.04,
and 2Q19 Net Earnings¹ of $189 million, diluted EPS of $0.99 |
THIRD QUARTER RESULTS
|
| | | | | | |
| $1.17 | | $214 million | | 3.48% | | 10.4% |
| Earnings per diluted common share | | Net Earnings 1 | | Net interest margin (“NIM”) | | Common Equity Tier 1 |
|
| | |
| THIRD QUARTER HIGHLIGHTS² |
| | | |
| Net Interest Income and NIM | | Net interest income was $567 million, compared with $565 million |
| NIM was 3.48%, compared with 3.63% |
| Total cost of deposits increased 22 basis points, while total cost of deposits from the second quarter of 2019 increased 1 basis point |
| Average total deposits increased to $55.3 billion, compared with $53.6 billion |
| | | |
| Operating Performance | | Pre-provision net revenue ("PPNR") was $305 million, up 7% |
| Adjusted PPNR³ was $309 million, up 6% |
| Noninterest expense was $415 million, down 1% |
| Adjusted noninterest expense³ was $415 million, stable from the prior year |
| Efficiency ratio³ was 57.3%, compared with 58.8% |
| | | |
| Loans and Credit Quality | | Net loans and leases were $48.8 billion, up $3.0 billion, or 7% |
| Nonperforming assets were $237 million, down 19% |
| Provision for credit losses was $10 million, compared with $(11) million |
| Net charge-offs of 0.01% of average loans, compared with net credit recoveries of 0.01% of average loans |
| | | |
| Capital Returns | | Return on average tangible common equity³ was 14.2% for both periods |
| Common stock repurchases of $275 million, 6.6 million shares, or 3.8% of shares outstanding as of June 30, 2019 |
| Common dividend increased to $0.34 per share from $0.30 per share |
| | | |
| Notable Items | | Net charge-offs of 0.01% of average loans for the trailing 12 months |
|
|
| CEO COMMENTARY |
| |
Harris H. Simmons, Chairman and CEO, commented, “Given the challenging interest rate environment in which banks currently operate, we’re pleased with the quarter’s overall results. We achieved solid growth of both demand and interest-bearing deposits, moderate loan growth, strong customer-related fee income growth, and flat operating expenses. Credit quality also remained well-controlled, with annualized net charge-offs of only 0.01% of average loans, and nonperforming assets which declined to less than 0.5% of average loans. A 12% reduction in average outstanding diluted shares relative to last year’s third quarter helped produce a 13% increase in earnings per share.”
Mr. Simmons continued, “As we adjust to a lower interest rate environment and anticipate the resulting continued pressure on interest margins, we will continue to take steps to carefully manage operating expenses in the year ahead. We are optimistic that we will be able to manage 2020 operating expenses to a level that is no more than, and likely modestly reduced from, expected 2019 results.” |
OPERATING PERFORMANCE3 |
|
|
¹ Net Earnings is net earnings applicable to common shareholders.
² Comparisons noted in the bullet points are calculated for the current quarter versus the same prior-year period, unless otherwise specified.
³ For information on non-GAAP financial measures and the reasons for which the Bank presents these numbers, see pages 16-19. |
ZIONS BANCORPORATION, N.A.
Press Release – Page 2
October 21, 2019
Comparisons noted in the sections below are calculated for the current quarter versus the same prior-year period, unless otherwise specified. Growth rates of 100% or more are rendered as not meaningful as they are generally reflective of a low initial starting point.
RESULTS OF OPERATIONS
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income and Margin |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | $ | | % | | $ | | % |
| Interest and fees on loans | $ | 581 |
| | $ | 581 |
| | $ | 537 |
| | $ | — |
| | — | % | | $ | 44 |
| | 8 | % |
| Interest on money market investments | 8 |
| | 8 |
| | 8 |
| | — |
| | — |
| | — |
| | — |
|
| Interest on securities | 88 |
| | 95 |
| | 86 |
| | (7 | ) | | (7 | ) | | 2 |
| | 2 |
|
| Total interest income | 677 |
| | 684 |
| | 631 |
| | (7 | ) | | (1 | ) | | 46 |
| | 7 |
|
| Interest on deposits | 69 |
| | 66 |
| | 38 |
| | 3 |
| | 5 |
| | 31 |
| | 82 |
|
| Interest on short and long-term borrowings | 41 |
| | 49 |
| | 28 |
| | (8 | ) | | (16 | ) | | 13 |
| | 46 |
|
| Total interest expense | 110 |
| | 115 |
| | 66 |
| | (5 | ) | | (4 | ) | | 44 |
| | 67 |
|
| Net interest income | $ | 567 |
| | $ | 569 |
| | $ | 565 |
| | $ | (2 | ) | | — |
| | $ | 2 |
| | — |
|
| | | | | | | | bps | | | | bps | | |
| Yield on interest-earning assets | 4.15 | % | | 4.24 | % | | 4.06 | % | | (9 | ) | | | | 9 |
| | |
| Rate paid on total deposits and interest-bearing liabilities | 0.71 | % | | 0.75 | % | | 0.45 | % | | (4 | ) | | | | 26 |
| | |
| Cost of total deposits | 0.50 | % | | 0.49 | % | | 0.28 | % | | 1 |
| | | | 22 |
| | |
| Net interest margin | 3.48 | % | | 3.54 | % | | 3.63 | % | | (6 | ) | | | | (15 | ) | | |
Net interest income increased $2 million to $567 million in the third quarter of 2019 from $565 million in the third quarter of 2018. Total interest income increased $46 million due to a $44 million increase in interest and fees on loans, primarily resulting from average loan growth of $3.5 billion. Interest expense increased $44 million primarily due to increases in the rate paid on deposits and short and long-term borrowings, reflecting the increase in short-term interest rates, in addition to a $1.8 billion, or 41%, increase in average short and long-term borrowings.
The yield on interest earning assets was 4.15%, a decrease of 9 basis points compared with the second quarter of 2019, and an increase of 9 basis points compared with the third quarter of 2018. When adjusted for interest recoveries of $3 million in the third quarter of 2018, using $1 million per loan as the reporting threshold, the yield on interest earning assets increased 11 basis points. Relative to the prior quarter, there was no material change in the recovery of interest income from nonaccrual loans. The yield on securities increased modestly over the year ago rate; however, relative to the second quarter of 2019, the yield on securities declined somewhat due to increased premium amortization resulting from faster repayment speeds.
The rate paid on total deposits and interest-bearing liabilities was 0.71% for the third quarter of 2019, a decrease from 0.75% for the second quarter of 2019, and an increase from 0.45% for the third quarter of 2018. The decline from the second quarter of 2019 was primarily due to lower rates paid on federal funds purchased and other short-term borrowings in addition to strong deposit growth. The increase from the third quarter of 2018 was due to an increase in the cost of deposits and other borrowed funds. The annualized cost of total deposits for the third quarter of 2019 was 0.50%, compared with 0.49% for the second quarter of 2019, and 0.28% for the third quarter of 2018.
ZIONS BANCORPORATION, N.A.
Press Release – Page 3
October 21, 2019
The net interest margin decreased to 3.48% in the third quarter of 2019, compared with 3.54% in the second quarter of 2019, and 3.63% in the same prior year period. The decrease from the second quarter of 2019 was primarily due a decline in loan and securities yields. The decrease from the same prior year period was due to an increase in the cost of deposits, partially offset by an increase in yields on interest-earning assets.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest Income |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | $ | | % | | $ | | % |
| Commercial account fees | $ | 31 |
| | $ | 30 |
| | $ | 31 |
| | $ | 1 |
| | 3 | % | | $ | — |
| | — | % |
| Card fees | 24 |
| | 23 |
| | 24 |
| | 1 |
| | 4 |
| | — |
| | — |
|
| Retail and business banking fees | 20 |
| | 20 |
| | 19 |
| | — |
| | — |
| | 1 |
| | 5 |
|
| Loan-related fees and income | 21 |
| | 17 |
| | 17 |
| | 4 |
| | 24 |
| | 4 |
| | 24 |
|
| Capital markets and foreign exchange fees | 23 |
| | 20 |
| | 14 |
| | 3 |
| | 15 |
| | 9 |
| | 64 |
|
| Wealth management and trust fees | 16 |
| | 15 |
| | 14 |
| | 1 |
| | 7 |
| | 2 |
| | 14 |
|
| Other customer-related fees | 5 |
| | 5 |
| | 7 |
| | — |
| | — |
| | (2 | ) | | (29 | ) |
| Customer-related fees | 140 |
| | 130 |
| | 126 |
| | 10 |
| | 8 |
| | 14 |
| | 11 |
|
| Dividends and other income | 4 |
| | 5 |
| | 11 |
| | (1 | ) | | (20 | ) | | (7 | ) | | (64 | ) |
| Securities gains (losses), net | 2 |
| | (3 | ) | | (1 | ) | | 5 |
| | NM |
| | 3 |
| | NM |
|
| Total noninterest income | $ | 146 |
| | $ | 132 |
| | $ | 136 |
| | $ | 14 |
| | 11 |
| | $ | 10 |
| | 7 |
|
Total noninterest income for the third quarter of 2019 increased by $10 million, or 7%, to $146 million from $136 million for the third quarter of 2018. Customer-related fees increased $14 million, which was largely attributable to a $7 million increase in fees for customer interest rate swap activity. Loan-related fees and income increased by $4 million, primarily due to an increase in volume of mortgage loan originations and sales to government-sponsored entities. Dividends and other income decreased by $7 million primarily due to a valuation adjustment on client-related interest rate swaps in the third quarter of 2019. As a result of the decline in interest rates during 2019 and increased client activity during the quarter, these client-related interest rate swaps significantly increased in value, resulting in the Bank having a larger exposure to the clients and a $6 million valuation adjustment in the third quarter of 2019, compared with $6 million in the second quarter of 2019, and less than $1 million in the third quarter of 2018.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest Expense |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | $ | | % | | $ | | % |
| Salaries and employee benefits | $ | 273 |
| | $ | 274 |
| | $ | 264 |
| | $ | (1 | ) | | — | % | | $ | 9 |
| | 3 | % |
| Occupancy, net | 34 |
| | 32 |
| | 33 |
| | 2 |
| | 6 |
| | 1 |
| | 3 |
|
| Furniture, equipment and software, net | 34 |
| | 35 |
| | 30 |
| | (1 | ) | | (3 | ) | | 4 |
| | 13 |
|
| Other real estate expense, net | (2 | ) | | — |
| | 1 |
| | (2 | ) | | NM |
| | (3 | ) | | NM |
|
| Credit-related expense | 2 |
| | 8 |
| | 5 |
| | (6 | ) | | (75 | ) | | (3 | ) | | (60 | ) |
| Professional and legal services | 10 |
| | 13 |
| | 12 |
| | (3 | ) | | (23 | ) | | (2 | ) | | (17 | ) |
| Advertising | 6 |
| | 5 |
| | 8 |
| | 1 |
| | 20 |
| | (2 | ) | | (25 | ) |
| FDIC premiums | 7 |
| | 6 |
| | 18 |
| | 1 |
| | 17 |
| | (11 | ) | | (61 | ) |
| Other | 51 |
| | 51 |
| | 49 |
| | — |
| | — |
| | 2 |
| | 4 |
|
| Total noninterest expense | $ | 415 |
| | $ | 424 |
| | $ | 420 |
| | $ | (9 | ) | | (2 | ) | | $ | (5 | ) | | (1 | ) |
Adjusted noninterest expense 1 | $ | 415 |
| | $ | 423 |
| | $ | 416 |
| | $ | (8 | ) | | (2 | ) | | $ | (1 | ) | | — |
|
| |
1 | For information on non-GAAP financial measures, see pages 16-19. |
ZIONS BANCORPORATION, N.A.
Press Release – Page 4
October 21, 2019
Noninterest expense for the third quarter of 2019 was $415 million, a decrease of 1% when compared with $420 million for the third quarter of 2018. FDIC premiums decreased $11 million primarily due to the elimination of the FDIC surcharge for large banks because the required Deposit Insurance Fund reserve ratio has been met, and the Bank issuing unsecured debt which results in lower FDIC premiums. Other real estate expense and credit-related expense both decreased by $3 million.
The aforementioned decreases in noninterest expense were partially offset by a $9 million increase in salaries and employee benefits and a $4 million increase in furniture, equipment and software expense. The increase in salaries and employee benefits was primarily due to a $13 million increase in base salaries, resulting from annual salary merit increases and employee headcount and a $2 million increase in employee benefits, partially offset by an $8 million decrease in incentive compensation. Furniture, equipment and software expense increased primarily as a result of the successful implementation of the second phase of our three-phase multi-year project to replace our core loan and deposit systems, which occurred in the first quarter of 2019, and has subsequently resulted in increased amortization expense.
Our efficiency ratio was 57.3% in the third quarter of 2019, compared with 59.0% in the second quarter of 2019, and 58.8% in the third quarter of 2018. Adjusted noninterest expense for the third quarter of 2019 decreased $1 million, or less than 1%, to $415 million, compared with $416 million for the same prior year period. For information on non-GAAP financial measures, including differences between noninterest expense and adjusted noninterest expense, see pages 16-19.
BALANCE SHEET ANALYSIS
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Quality |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | bps | | | | bps | | |
| Ratio of nonperforming assets to loans and leases and other real estate owned | 0.48 | % | | 0.52 | % | | 0.64 | % | | (4 | ) | | | | (16 | ) |
| |
| Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | 0.01 | % | | 0.12 | % | | (0.01 | )% | | (11 | ) | | | | 2 |
| | |
| Ratio of allowance for loan losses to loans and leases, at period end | 1.04 | % | | 1.03 | % | | 1.05 | % | | 1 |
| | | | (1 | ) | | |
| | | | | | | | $ | | % | | $ | | % |
| Classified loans | $ | 799 |
| | $ | 770 |
| | $ | 784 |
| | $ | 29 |
| | 4 | % | | $ | 15 |
| | 2 | % |
| Nonperforming assets | 237 |
| | 253 |
| | 292 |
| | (16 | ) | | (6 | ) | | (55 | ) | | (19 | ) |
| Net loan and lease charge-offs (recoveries) | 1 |
| | 14 |
| | (1 | ) | | (13 | ) | | (93 | ) | | 2 |
| | NM |
|
| Provision for credit losses | 10 |
| | 21 |
| | (11 | ) | | (11 | ) | | (52 | ) | | 21 |
| | NM |
|
Asset quality improved slightly when compared with the same prior year period. Nonperforming assets declined 19% from the third quarter of 2018, largely due to improvements in the oil and gas-related and commercial real estate portfolios. The ratio of nonaccrual loans and accruing loans past due 90 days or more to loans and leases was 0.49%, compared with 0.65% in the third quarter of 2018, reflecting a continued benign credit environment and disciplined underwriting.
The Bank recorded a $10 million provision for credit losses during the third quarter of 2019, compared with $21 million during the second quarter of 2019, and $(11) million for the third quarter of 2018. The allowance for loan losses was $510 million at September 30, 2019, compared with $480 million at September 30, 2018, or 1.04% and 1.05% of loans and leases, respectively. The increased allowance for credit losses from the prior year period is primarily due to loan growth and an increase in the qualitative portion of the allowance related to general economic indicators.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Loans and Leases |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | $ | | % | | $ | | % |
| Loans held for sale | $ | 141 |
| | $ | 105 |
| | $ | 61 |
| | $ | 36 |
| | 34 | % | | $ | 80 |
| | NM |
| Loans and leases: | | | | | | | | | | | | | |
| Commercial | 25,287 |
| | 25,107 |
| | 23,539 |
| | 180 |
| | 1 |
| | 1,748 |
| | 7 |
| Commercial real estate | 11,816 |
| | 11,827 |
| | 11,047 |
| | (11 | ) | | — |
| | 769 |
| | 7 |
| Consumer | 11,732 |
| | 11,683 |
| | 11,224 |
| | 49 |
| | — |
| | 508 |
| | 5 |
| Loans and leases, net of unearned income and fees | 48,835 |
| | 48,617 |
| | 45,810 |
| | 218 |
| | — |
| | 3,025 |
| | 7 |
| Less allowance for loan losses | 510 |
| | 503 |
| | 480 |
| | 7 |
| | 1 |
| | 30 |
| | 6 |
| Loans held for investment, net of allowance | $ | 48,325 |
| | $ | 48,114 |
| | $ | 45,330 |
| | $ | 211 |
| | — |
| | $ | 2,995 |
| | 7 |
Loans and leases, net of unearned income and fees, increased $3.0 billion, or 7%, to $48.8 billion at September 30, 2019 from $45.8 billion at September 30, 2018. Within commercial loans, commercial and industrial loans increased $750 million and municipal loans increased $622 million. Term commercial real estate loans increased $717 million.
ZIONS BANCORPORATION, N.A.
Press Release – Page 5
October 21, 2019
The growth in consumer loans was primarily due to a $467 million increase in 1-4 family residential loans. Unfunded lending commitments and letters of credit increased to $23.6 billion at September 30, 2019, compared with $21.9 billion at September 30, 2018.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits and Borrowed Funds |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | $ | | % | | $ | | % |
| Noninterest-bearing demand | $ | 23,770 |
| | $ | 22,947 |
| | $ | 24,067 |
| | $ | 823 |
| | 4 | % | | $ | (297 | ) | | (1 | )% |
| Interest-bearing: | | | | | | | | | | | | | |
| Savings and money market | 27,427 |
| | 26,470 |
| | 25,462 |
| | 957 |
| | 4 |
| | 1,965 |
| | 8 |
|
| Time | 4,942 |
| | 4,915 |
| | 4,256 |
| | 27 |
| | 1 |
| | 686 |
| | 16 |
|
| Total deposits | $ | 56,139 |
| | $ | 54,332 |
| | $ | 53,785 |
| | $ | 1,807 |
| | 3 |
| | $ | 2,354 |
| | 4 |
|
| | | | | | | | | | | | | | |
| Borrowed funds: | | | | | | | | | | | | | |
| Federal funds purchased and other short-term borrowings | $ | 4,579 |
| | $ | 6,023 |
| | $ | 3,780 |
| | (1,444 | ) | | (24 | ) | | 799 |
| | 21 |
|
| Long-term debt | $ | 1,242 |
| | $ | 1,236 |
| | $ | 879 |
| | 6 |
| | — |
| | 363 |
| | 41 |
| Total borrowed funds | $ | 5,821 |
| | $ | 7,259 |
| | $ | 4,659 |
| | $ | (1,438 | ) | | (20 | ) | | $ | 1,162 |
| | 25 |
|
Total deposits increased by $2.4 billion, or 4%, to $56.1 billion as of September 30, 2019, while noninterest bearing deposits decreased $0.3 billion, or 1%, over the same period. Average total deposits increased to $55.3 billion for the third quarter of 2019, compared with $53.6 billion for the third quarter of 2018. Average noninterest bearing deposits declined 3% to $23.4 billion for the third quarter of 2019, compared with $24.0 billion for the third quarter of 2018, and were 42% and 45% of average total deposits, respectively, for the same periods.
Total borrowed funds increased $1.2 billion, or 25%, to $5.8 billion as of September 30, 2019. Average borrowed funds increased to $6.3 billion for the third quarter of 2019, compared with $4.5 billion for the third quarter of 2018. The increase in both end of period and average borrowed funds reflects recent loan growth, which has exceeded deposit growth.
ZIONS BANCORPORATION, N.A.
Press Release – Page 6
October 21, 2019
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ Equity |
| | | | | | | | 3Q19 - 2Q19 | | 3Q19 - 3Q18 |
| (In millions) | 3Q19 | | 2Q19 | | 3Q18 | | $ | | % | | $ | | % |
| Shareholders’ equity: | | | | | | | | | | | | | |
| Preferred stock | $ | 566 |
| | $ | 566 |
| | $ | 566 |
| | $ | — |
| | — | % | | $ | — |
| | — | % |
| Common stock and additional paid-in capital | 3,002 |
| | 3,271 |
| | 4,052 |
| | (269 | ) | | (8 | ) | | (1,050 | ) | | (26) |
| Retained earnings | 3,892 |
| | 3,737 |
| | 3,296 |
| | 155 |
| | 4 |
| | 596 |
| | 18 |
|
| Accumulated other comprehensive income (loss) | 49 |
| | 25 |
| | (361 | ) | | 24 |
| | 96 | | 410 |
| | NM |
| Total shareholders' equity | $ | 7,509 |
| | $ | 7,599 |
| | $ | 7,553 |
| | $ | (90 | ) | | (1 | ) | | $ | (44 | ) | | (1 | ) |
| | | | | | | | | | | | | | |
| Capital distributions: | | | | | | | | | | | | | |
| Common dividends paid | $ | 60 |
| | $ | 54 |
| | $ | 58 |
| | 6 |
| | 11 |
| | 2 |
| | 3 |
|
| Bank common stock repurchased | 275 |
| | 275 |
| | 185 |
| | — |
| | — |
| | 90 |
| | 49 |
| Total capital distributed to common shareholders | 335 |
| | 329 |
| | 243 |
| | 6 |
| | 2 |
| | 92 |
| | 38 |
|
| | | | | | | | | | | | | | |
| Capital distributed as a percentage of net earnings applicable to common shareholders | 157 | % | | 174 | % | | 113 | % | |
| |
| |
| |
|
|
During the third quarter of 2019, the Bank’s common stock dividend was $0.34 per share, compared with $0.30 per share in the third quarter of 2018. Common stock repurchases during the current quarter totaled $275 million, or 6.6 million shares, which is equivalent to 3.8% of common stock outstanding as of June 30, 2019. During the last four quarters, the Bank repurchased $1.1 billion, or 23.1 million shares, of common stock which is equivalent to 12.0% of common stock outstanding as of September 30, 2018. As of September 30, 2019, the Bank had 29.3 million ZIONW warrants outstanding with a strike price of $34.14 per share that expire on May 22, 2020.
Common stock and additional paid-in capital decreased $1.1 billion, or 26%, from the third quarter of 2018, primarily due to the previously mentioned share repurchases. Accumulated other comprehensive income improved $410 million from a negative $361 million as of September 30, 2018, to $49 million as of September 30, 2019. The improvement was primarily a result of increases in the fair value of available-for-sale securities due to changes in interest rates.
Tangible book value per common share increased to $34.80 at September 30, 2019, compared with $31.08 at September 30, 2018, primarily due to a 11.3% decrease in common shares outstanding over the same period. Basel III common equity tier 1 (“CET1”) capital was $5.9 billion at September 30, 2019 and $6.3 billion at September 30, 2018. The estimated Basel III CET1 capital ratio was 10.4% at September 30, 2019 compared with 12.1% at September 30, 2018. For information on non-GAAP financial measures, see pages 16-19.
ZIONS BANCORPORATION, N.A.
Press Release – Page 7
October 21, 2019
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 21, 2019). 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 1358841 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. Additionally, Zions expects to host its biennial investor day on Thursday, February 6, 2020. Institutional investors and professional equity and fixed income analysts are encouraged to attend in person; retail investors and investment advisers are encouraged to join by webcast. The link to the webcast will be posted to zionsbancorporation.com in advance of the event. About Zions Bancorporation, N.A.
Zions Bancorporation, N.A. is one of the nation's premier financial services companies with total assets of $70 billion. Zions operates under local management teams and distinct brands in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming. The Bank is a national leader in Small Business Administration lending and public finance advisory services. The Bank has been the recipient of many local and national awards, primarily reflecting its strong customer service and products. The Bank has a strong commitment to the communities in which it operates. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to local banking brands can be accessed at zionsbancorporation.com. Forward-Looking Information
This earnings release includes “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, industry results or regulatory outcomes to differ materially from those expressed or implied by such forward-looking statements.
Without limiting the foregoing, the words “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “would,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about future financial and operating results. Actual results and outcomes may differ materially from those presented, either expressed or implied, in the release. Important risk factors that may cause such material differences include, but are not limited to, the Bank’s ability to meet operating leverage goals; the rate of change of interest-sensitive assets and liabilities relative to changes in benchmark interest rates; the ability of the Bank to upgrade its core deposit system and implement new digital products in order to remain competitive; risks associated with information security, such
ZIONS BANCORPORATION, N.A.
Press Release – Page 8
October 21, 2019
as systems breaches and failures; and legislative, regulatory and economic developments. These risks, as well as other factors, are discussed in the Bank’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 (https://www.sec.gov/). In addition, you may obtain documents filed with the SEC by the Bank free of charge by contacting: Investor Relations, Zions Bancorporation, N.A., One South Main Street, 11th Floor, Salt Lake City, Utah 84133, (801) 844-7637.
Except as required by law, Zions Bancorporation, N.A. 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, N.A.
Press Release – Page 9
October 21, 2019
FINANCIAL HIGHLIGHTS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In millions, except share, per share, and ratio data) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
BALANCE SHEET 1 | | | | | | | | | |
| Loans held for investment, net of allowance | $ | 48,325 |
| | $ | 48,114 |
| | $ | 47,109 |
| | $ | 46,219 |
| | $ | 45,330 |
|
| Total assets | 70,361 |
| | 70,065 |
| | 69,195 |
| | 68,746 |
| | 66,731 |
|
| Deposits | 56,139 |
| | 54,332 |
| | 54,535 |
| | 54,101 |
| | 53,785 |
|
| Total shareholders’ equity | 7,509 |
| | 7,599 |
| | 7,588 |
| | 7,578 |
| | 7,553 |
|
| STATEMENT OF INCOME | | | | | | | | | |
| Net earnings applicable to common shareholders | $ | 214 |
| | $ | 189 |
| | $ | 205 |
| | $ | 217 |
| | $ | 215 |
|
| Net interest income | 567 |
| | 569 |
| | 576 |
| | 576 |
| | 565 |
|
Taxable-equivalent net interest income 2 | 574 |
| | 576 |
| | 582 |
| | 582 |
| | 570 |
|
| Total noninterest income | 146 |
| | 132 |
| | 132 |
| | 140 |
| | 136 |
|
| Total noninterest expense | 415 |
| | 424 |
| | 430 |
| | 420 |
| | 420 |
|
Adjusted pre-provision net revenue 2 | 309 |
| | 294 |
| | 285 |
| | 305 |
| | 291 |
|
| Provision for credit losses | 10 |
| | 21 |
| | 4 |
| | 6 |
| | (11 | ) |
| SHARE AND PER COMMON SHARE AMOUNTS | | | | | | | | | |
| Net earnings per diluted common share | $ | 1.17 |
| | $ | 0.99 |
| | $ | 1.04 |
| | $ | 1.08 |
| | $ | 1.04 |
|
| Dividends | 0.34 |
| | 0.30 |
| | 0.30 |
| | 0.30 |
| | 0.30 |
|
Book value per common share 1 | 40.75 |
| | 39.75 |
| | 38.47 |
| | 37.39 |
| | 36.36 |
|
Tangible book value per common share 1, 2 | 34.80 |
| | 34.02 |
| | 32.92 |
| | 31.97 |
| | 31.08 |
|
| Weighted average share price | 43.04 |
| | 46.11 |
| | 47.71 |
| | 46.61 |
| | 52.80 |
|
| Weighted average diluted common shares outstanding (in thousands) | 181,870 |
| | 189,098 |
| | 195,241 |
| | 199,048 |
| | 205,765 |
|
Common shares outstanding (in thousands) 1 | 170,373 |
| | 176,935 |
| | 182,513 |
| | 187,554 |
| | 192,169 |
|
| SELECTED RATIOS AND OTHER DATA | | | | | | | | | |
| Return on average assets | 1.25 | % | | 1.14 | % | | 1.26 | % | | 1.34 | % | | 1.33 | % |
| Return on average common equity | 12.1 | % | | 10.8 | % | | 11.9 | % | | 12.4 | % | | 12.1 | % |
Return on average tangible common equity 2 | 14.2 | % | | 12.7 | % | | 13.9 | % | | 14.5 | % | | 14.2 | % |
| Net interest margin | 3.48 | % | | 3.54 | % | | 3.68 | % | | 3.67 | % | | 3.63 | % |
| Cost of total deposits, annualized | 0.50 | % | | 0.49 | % | | 0.43 | % | | 0.35 | % | | 0.28 | % |
Efficiency ratio 2 | 57.3 | % | | 59.0 | % | | 60.2 | % | | 57.8 | % | | 58.8 | % |
| Effective tax rate | 22.9 | % | | 22.7 | % | | 22.3 | % | | 22.1 | % | | 23.6 | % |
| Ratio of nonperforming assets to loans and leases and other real estate owned | 0.48 | % | | 0.52 | % | | 0.50 | % | | 0.55 | % | | 0.64 | % |
| Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | 0.01 | % | | 0.12 | % | | — | % | | (0.07 | )% | | (0.01 | )% |
Ratio of total allowance for credit losses to loans and leases outstanding 1 | 1.17 | % | | 1.16 | % | | 1.17 | % | | 1.18 | % | | 1.17 | % |
| Full-time equivalent employees | 10,255 |
| | 10,326 |
| | 10,204 |
| | 10,201 |
| | 10,143 |
|
CAPITAL RATIOS AND DATA 1 | | | | | | | | | |
| Common equity tier 1 capital | $ | 5,871 |
| | $ | 5,987 |
| | $ | 6,124 |
| | $ | 6,245 |
| | $ | 6,331 |
|
| Risk-weighted assets | 56,307 |
| | 55,499 |
| | 54,404 |
| | 53,591 |
| | 52,493 |
|
| Tangible common equity ratio | 8.5 | % | | 8.7 | % | | 8.8 | % | | 8.9 | % | | 9.1 | % |
| Common equity tier 1 capital ratio | 10.4 | % | | 10.8 | % | | 11.3 | % | | 11.7 | % | | 12.1 | % |
| Tier 1 leverage ratio | 9.3 | % | | 9.5 | % | | 9.9 | % | | 10.3 | % | | 10.5 | % |
| Tier 1 risk-based capital ratio | 11.4 | % | | 11.8 | % | | 12.3 | % | | 12.7 | % | | 13.1 | % |
| Total risk-based capital ratio | 12.6 | % | | 13.0 | % | | 13.5 | % | | 13.9 | % | | 14.6 | % |
| |
2 | For information on non-GAAP financial measures, see pages 16-19. |
ZIONS BANCORPORATION, N.A.
Press Release – Page 10
October 21, 2019
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In millions, shares in thousands) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| | (Unaudited) | | (Unaudited) | | (Unaudited) | |
| | (Unaudited) |
| ASSETS | | | | | | | | | |
| Cash and due from banks | $ | 796 |
| | $ | 538 |
| | $ | 536 |
| | $ | 614 |
| | $ | 517 |
|
| Money market investments: | | | | | | | | | |
| Interest-bearing deposits | 1,149 |
| | 634 |
| | 702 |
| | 619 |
| | 590 |
|
| Federal funds sold and security resell agreements | 504 |
| | 620 |
| | 438 |
| | 1,461 |
| | 560 |
|
| Investment securities: | | | | | | | | | |
Held-to-maturity1, at amortized cost | 658 |
| | 695 |
| | 764 |
| | 774 |
| | 751 |
|
| Available-for-sale, at fair value | 14,033 |
| | 14,672 |
| | 14,904 |
| | 14,737 |
| | 14,625 |
|
| Trading account, at fair value | 280 |
| | 148 |
| | 316 |
| | 106 |
| | 176 |
|
| Total investment securities | 14,971 |
| | 15,515 |
| | 15,984 |
| | 15,617 |
| | 15,552 |
|
| Loans held for sale | 141 |
| | 105 |
| | 69 |
| | 93 |
| | 61 |
|
| Loans and leases, net of unearned income and fees | 48,835 |
| | 48,617 |
| | 47,606 |
| | 46,714 |
| | 45,810 |
|
| Less allowance for loan losses | 510 |
| | 503 |
| | 497 |
| | 495 |
| | 480 |
|
| Loans held for investment, net of allowance | 48,325 |
| | 48,114 |
| | 47,109 |
| | 46,219 |
| | 45,330 |
|
| Other noninterest-bearing investments | 982 |
| | 1,056 |
| | 993 |
| | 1,046 |
| | 1,027 |
|
| Premises, equipment and software, net | 1,146 |
| | 1,133 |
| | 1,125 |
| | 1,124 |
| | 1,111 |
|
| Goodwill and intangibles | 1,014 |
| | 1,014 |
| | 1,014 |
| | 1,015 |
| | 1,015 |
|
| Other real estate owned | 4 |
| | 5 |
| | 6 |
| | 4 |
| | 4 |
|
| Other assets | 1,329 |
| | 1,331 |
| | 1,219 |
| | 934 |
| | 964 |
|
| Total assets | $ | 70,361 |
| | $ | 70,065 |
| | $ | 69,195 |
| | $ | 68,746 |
| | $ | 66,731 |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing demand | $ | 23,770 |
| | $ | 22,947 |
| | $ | 23,259 |
| | $ | 23,645 |
| | $ | 24,067 |
|
| Interest-bearing: | | | | | | | | | |
| Savings and money market | 27,427 |
| | 26,470 |
| | 26,348 |
| | 26,120 |
| | 25,462 |
|
| Time | 4,942 |
| | 4,915 |
| | 4,928 |
| | 4,336 |
| | 4,256 |
|
| Total deposits | 56,139 |
| | 54,332 |
| | 54,535 |
| | 54,101 |
| | 53,785 |
|
| Federal funds purchased and other short-term borrowings | 4,579 |
| | 6,023 |
| | 4,944 |
| | 5,653 |
| | 3,780 |
|
| Long-term debt | 1,242 |
| | 1,236 |
| | 1,228 |
| | 724 |
| | 879 |
|
| Reserve for unfunded lending commitments | 62 |
| | 60 |
| | 59 |
| | 57 |
| | 58 |
|
| Other liabilities | 830 |
| | 815 |
| | 841 |
| | 633 |
| | 676 |
|
| Total liabilities | 62,852 |
| | 62,466 |
| | 61,607 |
| | 61,168 |
| | 59,178 |
|
| Shareholders’ equity: | | | | | | | | | |
| Preferred stock, without par value; authorized 4,400 shares | 566 |
| | 566 |
| | 566 |
| | 566 |
| | 566 |
|
| Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital | 3,002 |
| | 3,271 |
| | 3,541 |
| | 3,806 |
| | 4,052 |
|
| Retained earnings | 3,892 |
| | 3,737 |
| | 3,603 |
| | 3,456 |
| | 3,296 |
|
| Accumulated other comprehensive income (loss) | 49 |
| | 25 |
| | (122 | ) | | (250 | ) | | (361 | ) |
| Total shareholders’ equity | 7,509 |
| | 7,599 |
| | 7,588 |
| | 7,578 |
| | 7,553 |
|
| Total liabilities and shareholders’ equity | $ | 70,361 |
| | $ | 70,065 |
| | $ | 69,195 |
| | $ | 68,746 |
| | $ | 66,731 |
|
1 Held-to-maturity (approximate fair value) | 662 |
| | 698 |
| | 762 |
| | 767 |
| | 734 |
|
2 Common stock (issued and outstanding) | 170,373 |
| | 176,935 |
| | 182,513 |
| | 187,554 |
| | 192,169 |
|
ZIONS BANCORPORATION, N.A.
Press Release – Page 11
October 21, 2019
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In millions, except share and per share amounts) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Interest income: | | | | | | | | | |
| Interest and fees on loans | $ | 581 |
| | $ | 581 |
| | $ | 570 |
| | $ | 555 |
| | $ | 537 |
|
| Interest on money market investments | 8 |
| | 8 |
| | 9 |
| | 8 |
| | 8 |
|
| Interest on securities | 88 |
| | 95 |
| | 96 |
| | 93 |
| | 86 |
|
| Total interest income | 677 |
| | 684 |
| | 675 |
| | 656 |
| | 631 |
|
| Interest expense: | | | | | | | | | |
| Interest on deposits | 69 |
| | 66 |
| | 57 |
| | 48 |
| | 38 |
|
| Interest on short- and long-term borrowings | 41 |
| | 49 |
| | 42 |
| | 32 |
| | 28 |
|
| Total interest expense | 110 |
| | 115 |
| | 99 |
| | 80 |
| | 66 |
|
| Net interest income | 567 |
| | 569 |
| | 576 |
| | 576 |
| | 565 |
|
| Provision for credit losses: | | | | | | | | | |
| Provision for loan losses | 8 |
| | 20 |
| | 2 |
| | 7 |
| | (11 | ) |
| Provision for unfunded lending commitments | 2 |
| | 1 |
| | 2 |
| | (1 | ) | | — |
|
| Total provision for credit losses | 10 |
| | 21 |
| | 4 |
| | 6 |
| | (11 | ) |
| Net interest income after provision for credit losses | 557 |
| | 548 |
| | 572 |
| | 570 |
| | 576 |
|
| Noninterest income: | | | | | | | | | |
| Commercial account fees | 31 |
| | 30 |
| | 30 |
| | 29 |
| | 31 |
|
| Card fees | 24 |
| | 23 |
| | 22 |
| | 25 |
| | 24 |
|
| Retail and business banking fees | 20 |
| | 20 |
| | 18 |
| | 20 |
| | 19 |
|
| Loan-related fees and income | 21 |
| | 17 |
| | 16 |
| | 20 |
| | 17 |
|
| Capital markets and foreign exchange fees | 23 |
| | 20 |
| | 17 |
| | 16 |
| | 14 |
|
| Wealth management and trust fees | 16 |
| | 15 |
| | 14 |
| | 14 |
| | 14 |
|
| Other customer-related fees | 5 |
| | 5 |
| | 5 |
| | 7 |
| | 7 |
|
| Customer-related fees | 140 |
| | 130 |
|
| 122 |
| | 131 |
| | 126 |
|
| Dividends and other income | 4 |
| | 5 |
| | 9 |
| | 7 |
| | 11 |
|
| Securities gains (losses), net | 2 |
| | (3 | ) | | 1 |
| | 2 |
| | (1 | ) |
| Total noninterest income | 146 |
| | 132 |
| | 132 |
| | 140 |
| | 136 |
|
| Noninterest expense: | | | | | | | | | |
| Salaries and employee benefits | 273 |
| | 274 |
| | 287 |
| | 270 |
| | 264 |
|
| Occupancy, net | 34 |
| | 32 |
| | 33 |
| | 35 |
| | 33 |
|
| Furniture, equipment and software, net | 34 |
| | 35 |
| | 32 |
| | 31 |
| | 30 |
|
| Other real estate expense, net | (2 | ) | | — |
| | (1 | ) | | — |
| | 1 |
|
| Credit-related expense | 2 |
| | 8 |
| | 6 |
| | 6 |
| | 5 |
|
| Professional and legal services | 10 |
| | 13 |
| | 11 |
| | 15 |
| | 12 |
|
| Advertising | 6 |
| | 5 |
| | 5 |
| | 6 |
| | 8 |
|
| FDIC premiums | 7 |
| | 6 |
| | 6 |
| | 6 |
| | 18 |
|
| Other | 51 |
| | 51 |
| | 51 |
| | 51 |
| | 49 |
|
| Total noninterest expense | 415 |
| | 424 |
| | 430 |
| | 420 |
| | 420 |
|
| Income before income taxes | 288 |
| | 256 |
| | 274 |
| | 290 |
| | 292 |
|
| Income taxes | 66 |
| | 58 |
| | 61 |
| | 64 |
| | 69 |
|
| Net income | 222 |
| | 198 |
| | 213 |
| | 226 |
| | 223 |
|
| Preferred stock dividends | (8 | ) | | (9 | ) | | (8 | ) | | (9 | ) | | (8 | ) |
| Net earnings applicable to common shareholders | $ | 214 |
| | $ | 189 |
| | $ | 205 |
| | $ | 217 |
| | $ | 215 |
|
| Weighted average common shares outstanding during the period: | | | | | | | | |
| Basic shares (in thousands) | 173,160 |
| | 179,156 |
| | 184,767 |
| | 189,169 |
| | 192,973 |
|
| Diluted shares (in thousands) | 181,870 |
| | 189,098 |
| | 195,241 |
| | 199,048 |
| | 205,765 |
|
| Net earnings per common share: | | | | | | | | | |
| Basic | $ | 1.23 |
| | $ | 1.05 |
| | $ | 1.10 |
| | $ | 1.14 |
| | $ | 1.11 |
|
| Diluted | 1.17 |
| | 0.99 |
| | 1.04 |
| | 1.08 |
| | 1.04 |
|
ZIONS BANCORPORATION, N.A.
Press Release – Page 12
October 21, 2019
Loan Balances Held for Investment by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In millions) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Commercial: | | | | | | | | | |
| Commercial and industrial | $ | 14,846 |
| | $ | 14,883 |
| | $ | 14,758 |
| | $ | 14,513 |
| | $ | 14,096 |
|
| Leasing | 332 |
| | 337 |
| | 312 |
| | 327 |
| | 332 |
|
| Owner occupied | 7,924 |
| | 7,828 |
| | 7,754 |
| | 7,661 |
| | 7,548 |
|
| Municipal | 2,185 |
| | 2,059 |
| | 1,774 |
| | 1,661 |
| | 1,563 |
|
| Total commercial | 25,287 |
| | 25,107 |
| | 24,598 |
| | 24,162 |
| | 23,539 |
|
| Commercial real estate: | | | | | | | | | |
| Construction and land development | 2,347 |
| | 2,609 |
| | 2,343 |
| | 2,186 |
| | 2,295 |
|
| Term | 9,469 |
| | 9,218 |
| | 9,187 |
| | 8,939 |
| | 8,752 |
|
| Total commercial real estate | 11,816 |
| | 11,827 |
| | 11,530 |
| | 11,125 |
| | 11,047 |
|
| Consumer: | | | | | | | | | |
| Home equity credit line | 2,930 |
| | 2,929 |
| | 2,884 |
| | 2,937 |
| | 2,884 |
|
| 1-4 family residential | 7,506 |
| | 7,440 |
| | 7,294 |
| | 7,176 |
| | 7,039 |
|
| Construction and other consumer real estate | 637 |
| | 644 |
| | 636 |
| | 643 |
| | 644 |
|
| Bankcard and other revolving plans | 494 |
| | 502 |
| | 489 |
| | 491 |
| | 483 |
|
| Other | 165 |
| | 168 |
| | 175 |
| | 180 |
| | 174 |
|
| Total consumer | 11,732 |
| | 11,683 |
| | 11,478 |
| | 11,427 |
| | 11,224 |
|
| Loans and leases, net of unearned income and fees | $ | 48,835 |
| | $ | 48,617 |
| | $ | 47,606 |
| | $ | 46,714 |
| | $ | 45,810 |
|
Nonperforming Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In millions) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| | | | | | | | | | |
Nonaccrual loans1 | $ | 233 |
| | $ | 248 |
| | $ | 234 |
| | $ | 252 |
| | $ | 288 |
|
| Other real estate owned | 4 |
| | 5 |
| | 6 |
| | 4 |
| | 4 |
|
| Total nonperforming assets | $ | 237 |
| | $ | 253 |
| | $ | 240 |
| | $ | 256 |
| | $ | 292 |
|
Ratio of nonperforming assets to loans1 and leases and other real estate owned | 0.48 | % | | 0.52 | % | | 0.50 | % | | 0.55 | % | | 0.64 | % |
| Accruing loans past due 90 days or more | $ | 6 |
| | $ | 17 |
| | $ | 8 |
| | $ | 10 |
| | $ | 12 |
|
Ratio of accruing loans past due 90 days or more to loans1 and leases | 0.01 | % | | 0.03 | % | | 0.02 | % | | 0.02 | % | | 0.03 | % |
| Nonaccrual loans and accruing loans past due 90 days or more | $ | 239 |
| | $ | 265 |
| | $ | 242 |
| | $ | 262 |
| | $ | 300 |
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases | 0.49 | % | | 0.54 | % | | 0.51 | % | | 0.56 | % | | 0.65 | % |
| Accruing loans past due 30-89 days | $ | 84 |
| | $ | 99 |
| | $ | 142 |
| | $ | 65 |
| | $ | 87 |
|
| Restructured loans included in nonaccrual loans | 92 |
| | 79 |
| | 76 |
| | 90 |
| | 90 |
|
| Restructured loans on accrual | 90 |
| | 97 |
| | 98 |
| | 112 |
| | 114 |
|
| Classified loans | 799 |
| | 770 |
| | 729 |
| | 698 |
| | 784 |
|
1 Includes loans held for sale.
ZIONS BANCORPORATION, N.A.
Press Release – Page 13
October 21, 2019
Allowance for Credit Losses
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In millions) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | $ | 503 |
| | $ | 497 |
| | $ | 495 |
| | $ | 480 |
| | $ | 490 |
|
| Provision for loan losses | 8 |
| | 20 |
| | 2 |
| | 7 |
| | (11 | ) |
| Loan and lease charge-offs | 11 |
| | 23 |
| | 12 |
| | 13 |
| | 17 |
|
| Less: Recoveries | 10 |
| | 9 |
| | 12 |
| | 21 |
| | 18 |
|
| Net loan and lease charge-offs (recoveries) | 1 |
| | 14 |
| | — |
| | (8 | ) | | (1 | ) |
| Balance at end of period | $ | 510 |
| | $ | 503 |
| | $ | 497 |
| | $ | 495 |
| | $ | 480 |
|
Ratio of allowance for loan losses to loans1 and leases, at period end | 1.04 | % | | 1.03 | % | | 1.04 | % | | 1.06 | % | | 1.05 | % |
Ratio of allowance for loan losses to nonaccrual loans1 at period end | 219 | % | | 203 | % | | 212 | % | | 201 | % | | 167 | % |
| Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | 0.01 | % | | 0.12 | % | | — | % | | (0.07 | )% | | (0.01 | )% |
| | | | | | | | | | |
| Reserve for Unfunded Lending Commitments | | | | | | | | | |
| Balance at beginning of period | $ | 60 |
| | $ | 59 |
| | $ | 57 |
| | $ | 58 |
| | $ | 58 |
|
| Provision for unfunded lending commitments | 2 |
| | 1 |
| | 2 |
| | (1 | ) | | — |
|
| Balance at end of period | $ | 62 |
| | $ | 60 |
| | $ | 59 |
| | $ | 57 |
| | $ | 58 |
|
| | | | | | | | | | |
| Allowance for Credit Losses | | | | | | | | | |
| Allowance for loan losses | $ | 510 |
| | $ | 503 |
| | $ | 497 |
| | $ | 495 |
| | $ | 480 |
|
| Reserve for unfunded lending commitments | 62 |
| | 60 |
| | 59 |
| | 57 |
| | 58 |
|
| Total allowance for credit losses | $ | 572 |
| | $ | 563 |
| | $ | 556 |
| | $ | 552 |
| | $ | 538 |
|
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end | 1.17 | % | | 1.16 | % | | 1.17 | % | | 1.18 | % | | 1.17 | % |
1 Does not include loans held for sale.
ZIONS BANCORPORATION, N.A.
Press Release – Page 14
October 21, 2019
Nonaccrual Loans by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In millions) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| | | | | | | | | | |
| Loans held for sale | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6 |
| | $ | — |
|
| Commercial: | | | | | | | | | |
| Commercial and industrial | $ | 97 |
| | $ | 85 |
| | $ | 72 |
| | $ | 82 |
| | $ | 112 |
|
| Leasing | 1 |
| | 1 |
| | 1 |
| | 2 |
| | 2 |
|
| Owner occupied | 49 |
| | 69 |
| | 69 |
| | 67 |
| | 66 |
|
| Municipal | — |
| | 1 |
| | 1 |
| | 1 |
| | 1 |
|
| Total commercial | 147 |
| | 156 |
| | 143 |
| | 152 |
| | 181 |
|
| Commercial real estate: | | | | | | | | | |
| Construction and land development | — |
| | 1 |
| | 1 |
| | — |
| | — |
|
| Term | 29 |
| | 31 |
| | 32 |
| | 38 |
| | 46 |
|
| Total commercial real estate | 29 |
| | 32 |
| | 33 |
| | 38 |
| | 46 |
|
| Consumer: | | | | | | | | | |
| Home equity credit line | 12 |
| | 12 |
| | 11 |
| | 13 |
| | 13 |
|
| 1-4 family residential | 44 |
| | 44 |
| | 45 |
| | 42 |
| | 47 |
|
| Construction and other consumer real estate | 1 |
| | 4 |
| | 2 |
| | — |
| | — |
|
| Bankcard and other revolving plans | — |
| | — |
| | — |
| | 1 |
| | 1 |
|
| Other | — |
| | — |
| | — |
| | — |
| | — |
|
| Total consumer | 57 |
| | 60 |
| | 58 |
| | 56 |
| | 61 |
|
| Total nonaccrual loans | $ | 233 |
| | $ | 248 |
| | $ | 234 |
| | $ | 252 |
| | $ | 288 |
|
Net Charge-Offs by Portfolio Type
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In millions) | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Commercial: | | | | | | | | | |
| Commercial and industrial | $ | — |
| | $ | 13 |
| | $ | 1 |
| | $ | (10 | ) | | $ | (3 | ) |
| Leasing | — |
| | — |
| | — |
| | — |
| | — |
|
| Owner occupied | (1 | ) | | — |
| | 1 |
| | — |
| | (1 | ) |
| Municipal | — |
| | — |
| | — |
| | — |
| | — |
|
| Total commercial | (1 | ) | | 13 |
| | 2 |
| | (10 | ) | | (4 | ) |
| Commercial real estate: | | | | | | | | | |
| Construction and land development | — |
| | — |
| | — |
| | (1 | ) | | (2 | ) |
| Term | (1 | ) | | — |
| | (2 | ) | | — |
| | 4 |
|
| Total commercial real estate | (1 | ) | | — |
| | (2 | ) | | (1 | ) | | 2 |
|
| Consumer: | | | | | | | | | |
| Home equity credit line | — |
| | — |
| | (1 | ) | | — |
| | (1 | ) |
| 1-4 family residential | (1 | ) | | (1 | ) | | (1 | ) | | — |
| | — |
|
| Construction and other consumer real estate | — |
| | — |
| | — |
| | — |
| | — |
|
| Bankcard and other revolving plans | 3 |
| | 1 |
| | 1 |
| | 2 |
| | 2 |
|
| Other | 1 |
| | 1 |
| | 1 |
| | 1 |
| | — |
|
| Total consumer loans | 3 |
| | 1 |
| | — |
| | 3 |
| | 1 |
|
| Total net charge-offs (recoveries) | $ | 1 |
| | $ | 14 |
| | $ | — |
| | $ | (8 | ) | | $ | (1 | ) |
ZIONS BANCORPORATION, N.A.
Press Release – Page 15
October 21, 2019
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited) |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | September 30, 2019 | | June 30, 2019 | | September 30, 2018 |
| (In millions) | Average balance | | Average yield/rate 1 | | Average balance | | Average
yield/rate 1 | | Average balance | | Average
yield/rate 1 |
| ASSETS | | | | | | | | | | | |
| Money market investments | $ | 1,413 |
| | 2.41 | % | | $ | 1,261 |
| | 2.64 | % | | $ | 1,327 |
| | 2.25 | % |
| Securities: | | | | | | | | | | | |
| Held-to-maturity | 693 |
| | 3.66 | % | | 687 |
| | 3.69 | % | | 848 |
| | 3.52 | % |
| Available-for-sale | 14,323 |
| | 2.29 | % | | 14,750 |
| | 2.43 | % | | 14,592 |
| | 2.20 | % |
| Trading account | 135 |
| | 4.50 | % | | 172 |
| | 4.48 | % | | 65 |
| | 3.43 | % |
| Total securities | 15,151 |
| | 2.37 | % | | 15,609 |
| | 2.51 | % | | 15,505 |
| | 2.28 | % |
| Loans held for sale | 89 |
| | 3.67 | % | | 71 |
| | 2.18 | % | | 53 |
| | 4.82 | % |
Loans held for investment:2 | | | | | | | | | | | |
| Commercial | 25,284 |
| | 4.83 | % | | 24,977 |
| | 4.94 | % | | 23,263 |
| | 4.88 | % |
| Commercial real estate | 11,849 |
| | 5.10 | % | | 11,777 |
| | 5.22 | % | | 11,009 |
| | 5.01 | % |
| Consumer | 11,695 |
| | 4.22 | % | | 11,570 |
| | 4.28 | % | | 11,096 |
| | 4.07 | % |
| Total loans held for investment | 48,828 |
| | 4.75 | % | | 48,324 |
| | 4.85 | % | | 45,368 |
| | 4.71 | % |
| Total interest-earning assets | 65,481 |
| | 4.15 | % | | 65,265 |
| | 4.24 | % | | 62,253 |
| | 4.06 | % |
| Cash and due from banks | 616 |
| | | | 592 |
| | | | 516 |
| | |
| Allowance for loan losses | (502 | ) | | | | (496 | ) | | | | (489 | ) | | |
| Goodwill and intangibles | 1,014 |
| | | | 1,014 |
| | | | 1,015 |
| | |
| Other assets | 3,643 |
| | | | 3,480 |
| | | | 3,079 |
| | |
| Total assets | $ | 70,252 |
| | | | $ | 69,855 |
| | | | $ | 66,374 |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings and money market | $ | 26,962 |
| | 0.65 | % | | $ | 26,262 |
| | 0.63 | % | | $ | 25,483 |
| | 0.36 | % |
| Time | 4,963 |
| | 1.99 | % | | 5,025 |
| | 2.02 | % | | 4,118 |
| | 1.49 | % |
| Total interest-bearing deposits | 31,925 |
| | 0.86 | % | | 31,287 |
| | 0.85 | % | | 29,601 |
| | 0.52 | % |
| Borrowed funds: | | | | | | | | | | | |
| Federal funds purchased and other short-term borrowings | 5,099 |
| | 2.29 | % | | 5,795 |
| | 2.53 | % | | 3,917 |
| | 2.09 | % |
| Long-term debt | 1,239 |
| | 3.65 | % | | 1,230 |
| | 3.84 | % | | 572 |
| | 4.91 | % |
| Total borrowed funds | 6,338 |
| | 2.56 | % | | 7,025 |
| | 2.76 | % | | 4,489 |
| | 2.45 | % |
| Total interest-bearing funds | 38,263 |
| | 1.14 | % | | 38,312 |
| | 1.20 | % | | 34,090 |
| | 0.77 | % |
| Noninterest-bearing deposits | 23,359 |
| | | | 23,060 |
| | | | 23,974 |
| | |
| Other liabilities | 1,062 |
| | | | 929 |
| | | | 720 |
| | |
| Total liabilities | 62,684 |
| | | | 62,301 |
| | | | 58,784 |
| | |
| Shareholders’ equity: | | | | | | | | | | | |
| Preferred equity | 566 |
| | | | 566 |
| | | | 566 |
| | |
| Common equity | 7,002 |
| | | | 6,988 |
| | | | 7,024 |
| | |
| Total shareholders’ equity | 7,568 |
| | | | 7,554 |
| | | | 7,590 |
| | |
| Total liabilities and shareholders’ equity | $ | 70,252 |
| | | | $ | 69,855 |
| | | | $ | 66,374 |
| | |
| Spread on average interest-bearing funds | | | 3.01 | % | | | | 3.04 | % | | | | 3.29 | % |
| Impact of net noninterest-bearing sources of funds | | | 0.47 | % | | | | 0.50 | % | | | | 0.34 | % |
| Net interest margin | | | 3.48 | % | | | | 3.54 | % | | | | 3.63 | % |
| Memo: total cost of deposits | | | 0.50 | % | | | | 0.49 | % | | | | 0.28 | % |
| Memo: total deposits and interest-bearing liabilities | 61,622 |
| | 0.71 | % | | 61,372 |
| | 0.75 | % | | 58,064 |
| | 0.45 | % |
1 Rates are calculated using amounts in thousands and taxable-equivalent rates used where applicable.
2 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
ZIONS BANCORPORATION, N.A.
Press Release – Page 16
October 21, 2019
GAAP to Non-GAAP Reconciliations
(Unaudited)
This press release presents non-GAAP financial measures, in addition to GAAP financial measures, to provide investors with additional information. The adjustments to reconcile from the applicable GAAP financial measures to the non-GAAP financial measures are presented in the following schedules. The Bank considers these adjustments to be relevant to ongoing operating results and provide a meaningful base for period-to-period and company-to-company comparisons. These non-GAAP financial measures are used by management to assess the performance and financial position of the Bank and for presentations of Bank performance to investors. The Bank further believes that presenting these non-GAAP financial measures will permit investors to assess the performance of the Bank on the same basis as that applied by management.
Non-GAAP financial measures have inherent limitations, and are not required to be uniformly applied by individual entities. 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.
The following are non-GAAP financial measures presented in this press release and a discussion of the reasons for which management uses these non-GAAP measures:
Tangible Book Value per Common Share – this schedule also includes “tangible common equity.” Tangible book value per common share is a non-GAAP financial measure that management believes provides additional useful information about the level of tangible equity in relation to outstanding shares of common stock. Management believes the use of ratios that utilize tangible equity provides additional useful information to management and others about capital adequacy because they present measures of those assets that can generate income.
|
| | | | | | | | | | | | | | | | | | | | |
| (In millions, except shares and per share amounts) | | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Tangible Book Value per Common Share | | | | | | | | | | |
| Total shareholders’ equity (GAAP) | | $ | 7,509 |
| | $ | 7,599 |
| | $ | 7,588 |
| | $ | 7,578 |
| | $ | 7,553 |
|
| Preferred stock | | (566 | ) | | (566 | ) | | (566 | ) | | (566 | ) | | (566 | ) |
| Goodwill and intangibles | | (1,014 | ) | | (1,014 | ) | | (1,014 | ) | | (1,015 | ) | | (1,015 | ) |
| Tangible common equity (non-GAAP) | (a) | $ | 5,929 |
| | $ | 6,019 |
| | $ | 6,008 |
| | $ | 5,997 |
| | $ | 5,972 |
|
| Common shares outstanding (in thousands) | (b) | 170,373 |
| | 176,935 |
| | 182,513 |
| | 187,554 |
| | 192,169 |
|
| Tangible book value per common share (non-GAAP) | (a/b) | $ | 34.80 |
| | $ | 34.02 |
| | $ | 32.92 |
| | $ | 31.97 |
| | $ | 31.08 |
|
ZIONS BANCORPORATION, N.A.
Press Release – Page 17
October 21, 2019
GAAP to Non-GAAP Reconciliations
(Unaudited)
Return on Average Tangible Common Equity – this schedule also includes “net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax” and “average tangible common equity.” Return on average tangible common equity is a non-GAAP financial measure that management believes provides useful information to management and others about the Bank’s use of shareholders’ equity. Management believes the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income.
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| (Dollar amounts in millions) | | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Return on Average Tangible Common Equity | | | | | | | | | |
| Net earnings applicable to common shareholders (GAAP) | | $ | 214 |
| | $ | 189 |
| | $ | 205 |
| | $ | 217 |
| | $ | 215 |
|
| Adjustments, net of tax: | | | | | | | | | | |
| Amortization of core deposit and other intangibles | | — |
| | — |
| | — |
| | — |
| | — |
|
| Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) | (a) | $ | 214 |
| | $ | 189 |
| | $ | 205 |
| | $ | 217 |
| | $ | 215 |
|
| Average common equity (GAAP) | | $ | 7,002 |
| | $ | 6,988 |
| | $ | 7,005 |
| | $ | 6,938 |
| | $ | 7,024 |
|
| Average goodwill and intangibles | | (1,014 | ) | | (1,014 | ) | | (1,014 | ) | | (1,015 | ) | | (1,015 | ) |
| Average tangible common equity (non-GAAP) | (b) | $ | 5,988 |
| | $ | 5,974 |
| | $ | 5,991 |
| | $ | 5,923 |
| | $ | 6,009 |
|
| Number of days in quarter | (c) | 92 |
| | 91 |
| | 90 |
| | 92 |
| | 92 |
|
| Number of days in year | (d) | 365 |
| | 365 |
| | 365 |
| | 365 |
| | 365 |
|
| Return on average tangible common equity (non-GAAP) | (a/b/c)*d | 14.2 | % | | 12.7 | % | | 13.9 | % | | 14.5 | % | | 14.2 | % |
ZIONS BANCORPORATION, N.A.
Press Release – Page 18
October 21, 2019
GAAP to Non-GAAP Reconciliations
(Unaudited)
Efficiency Ratio – this schedule also includes “adjusted noninterest expense,” “taxable-equivalent net interest income,” “adjusted taxable-equivalent revenue,” “pre-provision net revenue (PPNR)” and “adjusted PPNR.” The methodology of determining the efficiency ratio may differ among companies. Management makes adjustments to exclude certain items as identified in the subsequent schedules which it believes allows for more consistent comparability among periods. Management believes the efficiency ratio provides useful information regarding the cost of generating revenue. Adjusted noninterest expense provides a measure as to how well the Bank is managing its expenses, and adjusted PPNR enables management and others to assess the Bank’s ability to generate capital to cover credit losses through a credit cycle. Taxable-equivalent net interest income allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources.
Adjusted Pre-Provision Net Revenue per Common Share – this schedule uses “adjusted PPNR” as calculated in the efficiency ratio, which is divided by the weighted average diluted common shares for the period. As mentioned previously, Management believes that adjusted PPNR enables management and others to assess the Bank’s ability to generate capital to cover credit losses through a credit cycle. Dividing this amount by the weighted average diluted common shares outstanding provides a shareholder’s perspective of PPNR growth.
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| (In millions) | | September 30,
2019 | | June 30,
2019 | | March 31,
2019 | | December 31,
2018 | | September 30,
2018 |
| Efficiency Ratio | | | | | | | | | | |
| Noninterest expense (GAAP) | (a) | $ | 415 |
| | $ | 424 |
| | $ | 430 |
| | $ | 420 |
| | $ | 420 |
|
| Adjustments: | | | | | | | | | | |
| Severance costs | | 2 |
| | 1 |
| |
| | 2 |
| | 2 |
|
| Other real estate expense, net | | (2 | ) | | — |
| | (1 | ) | | — |
| | 1 |
|
| Restructuring costs | | — |
| | — |
| | — |
| | — |
| | 1 |
|
| Pension termination-related expense | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total adjustments | (b) | — |
| | 1 |
| | (1 | ) | | 2 |
| | 4 |
|
| Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 415 |
| | $ | 423 |
| | $ | 431 |
| | $ | 418 |
| | $ | 416 |
|
| Net interest income (GAAP) | (d) | $ | 567 |
| | $ | 569 |
| | $ | 576 |
| | $ | 576 |
| | $ | 565 |
|
| Fully taxable-equivalent adjustments | (e) | 7 |
| | 7 |
| | 6 |
| | 6 |
| | 5 |
|
| Taxable-equivalent net interest income (non-GAAP) | (d+e)=(f) | 574 |
| | 576 |
| | 582 |
| | 582 |
| | 570 |
|
| Noninterest income (GAAP) | (g) | 146 |
| | 132 |
| | 132 |
| | 140 |
| | 136 |
|
| Combined income (non-GAAP) | (f+g)=(h) | 720 |
| | 708 |
| | 714 |
| | 722 |
| | 706 |
|
| Adjustments: | | | | | | | | | | |
| Fair value and nonhedge derivative loss | | (6 | ) | | (6 | ) | | (3 | ) | | (3 | ) | | — |
|
| Securities gains (losses), net | | 2 |
| | (3 | ) | | 1 |
| | 2 |
| | (1 | ) |
| Total adjustments | (i) | (4 | ) | | (9 | ) | | (2 | ) | | (1 | ) | | (1 | ) |
Adjusted taxable-equivalent revenue (non-GAAP) | (h-i)=(j) | $ | 724 |
| | $ | 717 |
| | $ | 716 |
| | $ | 723 |
| | $ | 707 |
|
| Pre-provision net revenue (PPNR) (non-GAAP) | (h)-(a) | $ | 305 |
| | $ | 284 |
| | $ | 284 |
| | $ | 302 |
| | $ | 286 |
|
| Adjusted PPNR (non-GAAP) | (j-c)=(k) | 309 |
| | 294 |
| | 285 |
| | 305 |
| | 291 |
|
| Efficiency ratio (non-GAAP) | (c/j) | 57.3 | % | | 59.0 | % | | 60.2 | % | | 57.8 | % | | 58.8 | % |
| | | | | | | | | | | |
| Adjusted PPNR per common share | | | | | | | | | | |
| Adjusted PPNR (non-GAAP) | (k) | 309 |
| | 294 |
| | 285 |
| | 305 |
| | 291 |
|
| Weighted average diluted shares outstanding (in thousands) | (l) | 181,870 |
| | 189,098 |
| | 195,241 |
| | 199,048 |
| | 205,765 |
|
| Adjusted PPNR per common share (non-GAAP) | (k)/(l) | 1.70 |
| | 1.55 |
| | 1.46 |
| | 1.53 |
| | 1.41 |
|
ZIONS BANCORPORATION, N.A.
Press Release – Page 19
October 21, 2019
|
| | | | | | | | |
| | | Nine Months Ended |
| (In millions) | | September 30,
2019 | | September 30,
2018 |
| Efficiency Ratio | | | | |
| Noninterest expense (GAAP) | (a) | $ | 1,270 |
| | $ | 1,259 |
|
| Adjustments: | | | | |
| Severance costs | | 4 |
| | 1 |
|
| Other real estate expense | | (3 | ) | | 1 |
|
| Amortization of core deposit and other intangibles | | — |
| | 1 |
|
| Restructuring costs | | — |
| | 1 |
|
| Pension termination-related expense | | — |
| | — |
|
| Total adjustments | (b) | 1 |
| | 4 |
|
| Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 1,269 |
| | $ | 1,255 |
|
| Net interest income (GAAP) | (d) | $ | 1,712 |
| | $ | 1,654 |
|
| Fully taxable-equivalent adjustments | (e) | 20 |
| | 16 |
|
| Taxable-equivalent net interest income (non-GAAP) | (d+e)=(f) | 1,732 |
| | 1,670 |
|
| Noninterest income (GAAP) | (g) | 410 |
| | 412 |
|
| Combined income (non-GAAP) | (f+g)=(h) | 2,142 |
| | 2,082 |
|
| Adjustments: | | | | |
| Fair value and nonhedge derivative income (loss) | | (15 | ) | | 2 |
|
| Securities gains (losses), net | | — |
| | (1 | ) |
| Total adjustments | (i) | (15 | ) | | 1 |
|
| Adjusted taxable-equivalent revenue (non-GAAP) | (h-i)=(j) | $ | 2,157 |
| | $ | 2,081 |
|
| Pre-provision net revenue (PPNR) | (h)-(a) | $ | 872 |
| | $ | 823 |
|
| Adjusted PPNR (non-GAAP) | (j-c)=(k) | 888 |
| | 826 |
|
| Efficiency ratio (non-GAAP) | (c/j) | 58.8 | % | | 60.3 | % |
| | | | | |
| Adjusted PPNR per common share | | | | |
| Adjusted PPNR (non-GAAP) | (k) | 888 |
| | 826 |
|
| Weighted average diluted shares outstanding (in thousands) | (l) | 188,895 |
| | 208,657 |
|
| Adjusted PPNR per common share (non-GAAP) | (k)/(l) | 4.70 |
| | 3.96 |
|
