SALT LAKE CITY, Oct. 19, 2009 (GLOBE NEWSWIRE) -- Zions Bancorporation (Nasdaq:ZION) ("Zions" or "the Company") today reported a third quarter net loss applicable to common shareholders of $179.5 million or $1.41 per diluted share, compared to a net loss of $40.7 million or $0.35 per diluted share for the second quarter of 2009.
Third Quarter 2009 Highlights
Positives:
* Strong net interest margin of 3.91%, after negative impacts
related to the prior quarter's modification of subordinated
debt, and conversion this quarter of some of this modified
subordinated debt to preferred stock.
* Build-up of the allowance for loan losses to a ratio to net
loans of 3.61% compared to 3.08% in second quarter; ratio of
total allowance and reserve for credit losses to net loans
increased to 3.86% compared to 3.23% in second quarter.
* Average noninterest-bearing demand deposits increased
$0.7 billion or 27.4% annualized to $11.4 billion from second
quarter.
* Acquisition of the failed Vineyard Bank with FDIC assistance,
which resulted in a pretax acquisition related gain of
$146.2 million.
Continuing challenges:
* Net loan charge-offs of $381.3 million compared to $347.5 million
in second quarter.
* Nonperforming lending related assets of $2.2 billion (excluding
FDIC-supported assets); ratio to net loans and other real estate
owned of 5.40% compared to 4.68% in second quarter.
* Credit-related impairment losses on CDO securities of
$56.5 million compared to $42.0 million in second quarter.
"Results from the third quarter were mixed. We again augmented our capital, reserves, and liquidity positions, even as we saw some signs of stabilization in some geographies and markets; however, we believe the economy remains fragile and therefore we continue to exercise caution," said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, "We are again encouraged with the continued stability of our core pretax, preprovision earnings of approximately $1 billion, which together with our actions to augment capital, reserves, and liquidity, position the Company to continue weathering an uncertain economic environment."
Asset Quality
The provision for loan losses was $565.9 million for the third quarter of 2009 compared to $762.7 million for the second quarter of 2009 and $156.6 million for the third quarter of 2008. When combined with the provision for unfunded lending commitments, the total provision for credit losses was $221.2 million in excess of net loan and lease charge-offs. The provision exceeded losses as a result of a moderate increase in troubled assets and greater loss severity, and after the Company completed its implementation of loss migration factors that are more weighted toward recent loss experience.
The allowance for loan losses as a percentage of net loans and leases excluding FDIC-supported assets was 3.61% at September 30, 2009 compared to 3.08% at June 30, 2009 and 1.46% at September 30, 2008. The combined allowance for loan losses and reserve for unfunded lending commitments was $1,529.9 million, or 3.86% of net loans and leases excluding FDIC-supported assets at September 30, 2009, compared to 3.23% at June 30, 2009 and 1.52% at September 30, 2008.
Nonperforming lending related assets were $2,171.0 million at September 30, 2009 ($2,770.3 million including FDIC-supported assets) compared to $1,922.6 million at June 30, 2009 and $922.3 million at September 30, 2008. The ratio of nonperforming lending related assets excluding FDIC-supported assets to net loans, leases and other real estate owned was 5.40% at September 30, 2009 compared to 4.68% at June 30, 2009 and 2.19% at September 30, 2008.
Net loan and lease charge-offs for the third quarter of 2009 were $381.3 million or 3.79% annualized of average loans excluding FDIC-supported assets. This compares with $347.5 million or 3.39% annualized of average loans excluding FDIC-supported assets for the second quarter of 2009 and $95.3 million or 0.91% annualized of average loans for the third quarter of 2008. The second quarter charge-offs included one credit for $47.5 million, on which a substantial recovery is expected. The majority of the sequential quarterly increase was due to construction loans.
Capital and Financing Actions
On August 27, 2009, the Company completed the sale of $250 million of common stock that was announced June 1, 2009. For the third quarter of 2009, 7,655,267 shares of this issuance were sold for $123.5 million (average price of $16.13). On September 17, 2009, the Company commenced the sale of another $250 million of common stock. As of September 30, 2009, 3,671,000 shares of this issuance were sold for $67.2 million (average price of $18.31). Net of commissions and fees, these common equity distribution programs added $187.5 million to tangible common equity during the quarter.
On September 23, 2009, the Company issued $450 million of 7.75% unsecured senior notes due September 23, 2014 at a price of 86.888%. Issuance of these notes added approximately $387 million to the Parent's cash balance, which was $859 million at September 30, 2009.
During the third quarter of 2009, and as a result of the subordinated debt modifications previously announced, $27.8 million of subordinated debt was converted into shares of the Company's Series C preferred stock. This conversion accelerated the discount amortization, resulting in a $9.0 million increase to interest expense in the third quarter of 2009.
The tangible common equity ratio was 5.43% at September 30, 2009 compared to 5.66% at June 30, 2009 and 6.05% at September 30, 2008. The change from the second quarter reflects the impact of the common stock issuances and acquisition related gains, offset by the effect of operating items, including the provisions for credit losses and impairment losses on securities. The estimated Tier 1 common to risk-weighted assets ratio was 6.10% at September 30, 2009 and was 6.08% at June 30, 2009.
Acquisition Related Gains
As previously disclosed, on July 17, 2009, the Company's California Bank & Trust subsidiary acquired the failed Vineyard Bank from the FDIC as receiver. Prior to purchase accounting adjustments, Vineyard had approximately $1.6 billion of assets, including $1.4 billion of loans, $1.5 billion of deposits, and 16 branches, mostly located in the Inland Empire area of Southern California. The loans were acquired under a loss sharing agreement with the FDIC. During the third quarter of 2009, the Company recognized acquisition related gains of $146.2 million.
Loans
Net loans and leases of $41.7 billion at September 30, 2009 increased approximately $0.3 billion or 2.6% annualized from $41.4 billion at June 30, 2009, and were essentially unchanged from $41.7 billion at September 30, 2008. Excluding FDIC-supported assets, net loans and leases decreased approximately $0.9 billion or 8.7% annualized to $39.6 billion from $40.5 billion at June 30, 2009 and decreased $2.1 billion, or 5.0% from the balance one year ago. The net decrease from June 30, 2009 was primarily in the construction and land development, and commercial and industrial loan portfolios.
Deposits
Average total deposits for the third quarter of 2009, which included the effect of the Vineyard Bank acquisition, increased $0.4 billion or 3.6% annualized to $43.3 billion compared to $42.9 billion for the second quarter of 2009, and increased $6.0 billion or 16.2% compared to $37.3 billion for the third quarter of 2008. Average noninterest-bearing demand deposits increased $0.7 billion or 27.4% annualized to $11.4 billion compared to $10.7 billion for the second quarter of 2009.
Net Interest Income
The net interest margin was 3.91% for the third quarter of 2009 compared to 4.09% for the second quarter of 2009 and 4.13% for the third quarter of 2008. The net interest margin for the second quarter of 2009 was favorably impacted by 0.07% due to the amortization of the gain on the terminated fair value swaps related to the modified subordinated debt, which did not recur in the third quarter. The net interest margin for the third quarter of 2009 was unfavorably impacted by 0.13% for the discount amortization on the modified subordinated debt and an additional 0.07% for the conversion of subordinated debt to Series C preferred stock. During the third quarter of 2009, the net interest margin was helped by strong pricing on new loans, reduced rates on interest-bearing deposit accounts, and the previously mentioned growth of noninterest-bearing demand deposits.
Investment Securities
During the third quarter of 2009, the Company recognized credit-related net impairment losses on CDOs of $56.5 million, or $0.27 per diluted share, compared to $42.0 million during the second quarter of 2009. Both the credit-related net impairment losses and OCI noncredit-related losses reflected a change in the assumptions used to estimate future bank failures, which directly impacted the fair value of the Company's pooled trust preferred securities. As the credit cycle has progressed, more deferral/default data has become available on the underlying collateral, allowing the Company to use a proprietary multivariate prediction analysis in lieu of previous reliance on "LACE" ratings to estimate nonpublic bank failures. Backtesting shows a significantly stronger statistical ability to predict bank failures than the prior analysis.
The primary impairment of the securities portfolio in the third quarter is related to CDOs where the underlying collateral is predominantly from banking institutions. These bank CDOs comprise $2.2 billion of the $2.7 billion par amount of the bank and insurance CDO portfolio. Below is a table showing the Company's current CDO concentration by original rating (e.g. 52% of the current $2.2 billion was originally rated AAA). The impairment charges taken during the third quarter stem primarily from the original single A rated CDOs, which had a carrying value at 37% of par at September 30, 2009, and to a lesser degree the original BBB rated CDOs, which had a carrying value at 25% of par. The original AAA rated CDOs had a carrying value at 69% of par at September 30, 2009.
(In millions)
September 30, 2009
------------------------------- % of carrying Change
Par Carrying value value to par 9/30/09
Original --------------- --------------- --------------- vs
ratings Amount % Amount % 9/30/09 6/30/09 6/30/09
-------- ------- ------- ------- ------- ------- ------- -------
AAA $ 1,153 52% $ 798 68% 69% 70% -1%
A 949 43% 353 30% 37% 49% -12%
BBB 113 5% 28 2% 25% 39% -14%
------- ------- ------- -------
$ 2,215 100% $ 1,179 100% 53% 59% -6%
======= ======= ======= =======
Noninterest Income
Noninterest income for the third quarter of 2009 was $270.7 million compared to $585.3 million for the second quarter of 2009 and $89.6 million for the third quarter of 2008. The decline for the third quarter of 2009 was due to unusual items in both the second and third quarters of 2009, including acquisition related gains of $146.2 million and fair value and nonhedge derivative income of $58.1 million in the third quarter, while the second quarter included $466.3 million of gains on swap termination and debt modification.
Fair value and nonhedge derivative income increased by $37.8 million to $58.1 million during the third quarter of 2009 compared to $20.3 million during the second quarter of 2009 mainly due to the recognition of hedge ineffectiveness primarily on cash flow hedges of floating rate loans. Interest rate swaps became ineffective as loan pools paid down or renewed with wider spreads.
Noninterest Expense
Noninterest expense for the third quarter of 2009 was $434.7 million compared to $419.5 million for the second quarter of 2009 and $372.3 million for the third quarter of 2008. FDIC premiums were $19.8 million for the third quarter of 2009 compared to $42.3 million for the second quarter of 2009; the second quarter premiums included a special assessment of $24.2 million. The provision for unfunded lending commitments increased to $36.5 million during the third quarter of 2009 compared to $7.9 million during the second quarter of 2009, primarily due to the Company's implementation of loss migration factors that are more weighted toward recent loss experience.
Conference Call
Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 19, 2009). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-888-455-2308 (international: 719-457-1036) and entering the passcode 1851542, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from 8:30 p.m. ET on Monday, October 19, 2009, until midnight ET on Monday, October 26, 2009, by dialing 1-888-203-1112 (international: 719-457-0820) and entering the passcode 1851542. The webcast of the conference call will also be archived and available for 30 days.
About Zions Bancorporation
Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through approximately 500 offices in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.
Forward-Looking Information
Statements in this earnings release that are based on other than historical data are forward-looking, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including changes in securities markets and valuations in structured securities and other assets; changes in governmental policies and programs resulting from general economic and financial market conditions; changes in interest and funding rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.
Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Zions Bancorporation's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and available at the SEC's Internet site (http://www.sec.gov).
The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
ZIONS BANCORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended
(In thousands, except per September 30,
share and ratio data) ---------------------------------------
2009 2008 % Change
----------- ----------- -----------
EARNINGS
Taxable-equivalent net
interest income $ 482,005 $ 497,822 (3.18)%
Taxable-equivalent revenue 752,745 587,432 28.14 %
Net interest income 476,050 492,003 (3.24)%
Noninterest income 270,740 89,610 202.13 %
Provision for loan losses 565,930 156,606 261.37 %
Noninterest expense 434,707 372,276 16.77 %
Impairment loss on goodwill -- --
Income (loss) before income
taxes (253,847) 52,731 (581.40)%
Income taxes (benefit) (98,565) 11,214 (978.95)%
Net income (loss) (155,282) 41,517 (474.02)%
Net income (loss) applicable
to noncontrolling interests (2,394) 3,757 (163.72)%
Net income (loss) applicable
to controlling interest (152,888) 37,760 (504.89)%
Net earnings (loss)
applicable to common
shareholders (179,491) 33,351 (638.19)%
PER COMMON SHARE
Net earnings (loss) (diluted) (1.41) 0.31 (554.84)%
Dividends 0.01 0.43 (97.67)%
Book value per common share
SELECTED RATIOS
Return on average assets (1.13)% 0.28 %
Return on average common
equity (17.19)% 2.59 %
Efficiency ratio 57.75 % 63.37 %
Net interest margin 3.91 % 4.13 %
Nine Months Ended
September 30,
---------------------------------------
2009 2008 % Change
----------- ----------- -----------
EARNINGS
Taxable-equivalent net
interest income $ 1,462,107 $ 1,480,946 (1.27)%
Taxable-equivalent revenue 2,172,929 1,753,928 23.89 %
Net interest income 1,444,513 1,463,204 (1.28)%
Noninterest income 710,822 272,982 160.39 %
Provision for loan losses 1,626,208 363,080 347.89 %
Noninterest expense 1,230,381 1,076,796 14.26 %
Impairment loss on goodwill 633,992 --
Income (loss) before income
taxes (1,335,246) 296,310 (550.62)%
Income taxes (benefit) (284,531) 83,147 (442.20)%
Net income (loss) (1,050,715) 213,163 (592.92)%
Net income (loss) applicable
to noncontrolling interests (4,143) (3,544) (16.90)%
Net income (loss) applicable
to controlling interest (1,046,572) 216,707 (582.94)%
Net earnings (loss)
applicable to common
shareholders (1,072,490) 207,391 (617.13)%
PER COMMON SHARE
Net earnings (loss) (diluted) (8.99) 1.93 (565.80)%
Dividends 0.09 1.29 (93.02)%
Book value per common share 29.16 45.78 (36.30)%
SELECTED RATIOS
Return on average assets (2.57)% 0.54 %
Return on average common
equity (32.88)% 5.42 %
Efficiency ratio 56.62 % 61.39 %
Net interest margin 3.97 % 4.18 %
ZIONS BANCORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended
(In thousands, except share September 30,
and ratio data) -------------------------------------
2009 2008 % Change
----------- ----------- -----------
AVERAGE BALANCES
Total assets $53,600,060 $54,279,760 (1.25)%
Total interest-earning assets 48,950,422 47,984,725 2.01 %
Securities 4,758,872 4,582,727 3.84 %
Net loans and leases 42,135,431 41,824,097 0.74 %
Goodwill 1,017,387 2,009,509 (49.37)%
Core deposit and other
intangibles 126,614 132,167 (4.20)%
Total deposits 43,349,431 37,321,656 16.15 %
Shareholders' equity:
Preferred equity 1,514,675 282,500 436.17 %
Common equity 4,142,749 5,123,399 (19.14)%
Noncontrolling interests 22,810 29,949 (23.84)%
Weighted average common and
common-equivalent shares
outstanding 127,581,404 108,497,464 17.59 %
AT PERIOD END
Total assets
Total interest-earning assets
Securities
Net loans and leases
Allowance for loan losses
Reserve for unfunded lending
commitments
Goodwill
Core deposit and other
intangibles
Total deposits
Shareholders' equity:
Preferred equity
Common equity
Noncontrolling interests
Common shares outstanding
Average equity to average
assets 10.60% 10.01%
Common dividend payout na 138.44%
Tangible common equity ratio
Tangible equity ratio
Nonperforming assets, excluding
FDIC-supported assets
Ratio of nonperforming assets,
excluding FDIC-supported
assets, to net loans and
leases and other real estate
owned
Accruing loans past due 90 days
or more, excluding FDIC-
supported assets
Nine Months Ended
September 30,
-------------------------------------
2009 2008 % Change
----------- ----------- -----------
AVERAGE BALANCES
Total assets $54,350,039 $53,498,514 1.59 %
Total interest-earning assets 49,181,065 47,349,240 3.87 %
Securities 4,718,345 4,928,877 (4.27)%
Net loans and leases 41,979,236 40,467,491 3.74 %
Goodwill 1,227,331 2,009,501 (38.92)%
Core deposit and other
intangibles 126,380 138,711 (8.89)%
Total deposits 42,816,766 36,898,398 16.04 %
Shareholders' equity:
Preferred equity 1,561,776 254,270 514.22 %
Common equity 4,361,059 5,106,750 (14.60)%
Noncontrolling interests 25,248 29,292 (13.81)%
Weighted average common and
common-equivalent shares
outstanding 119,247,925 107,333,422 11.10 %
AT PERIOD END
Total assets $53,403,672 $53,974,168 (1.06)%
Total interest-earning assets 48,711,261 47,656,065 2.21 %
Securities 4,500,906 4,755,359 (5.35)%
Net loans and leases 41,673,036 41,735,598 (0.15)%
Allowance for loan losses 1,432,715 609,433 135.09 %
Reserve for unfunded lending
commitments 97,225 23,574 312.42 %
Goodwill 1,017,385 2,009,504 (49.37)%
Core deposit and other
intangibles 123,551 133,989 (7.79)%
Total deposits 43,007,981 38,590,901 11.45 %
Shareholders' equity:
Preferred equity 1,524,722 286,949 431.36 %
Common equity 3,977,633 5,279,078 (24.65)%
Noncontrolling interests 21,533 30,288 (28.91)%
Common shares outstanding 136,398,089 115,302,598 18.30 %
Average equity to average
assets 10.94% 10.08%
Common dividend payout na 66.72%
Tangible common equity ratio 5.43% 6.05%
Tangible equity ratio 8.39% 6.66%
Nonperforming assets, excluding
FDIC-supported assets $ 2,171,014 $ 922,339 135.27 %
Ratio of nonperforming assets,
excluding FDIC-supported
assets, to net loans and
leases and other real estate
owned 5.40% 2.19%
Accruing loans past due 90 days
or more, excluding FDIC-
supported assets $ 186,519 $ 97,831 90.65 %
ZIONS BANCORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended
------------------------------------
(In thousands, except per Sept. 30, June 30, March 31,
share and ratio data) 2009 2009 2009
---------- ---------- ----------
EARNINGS
Taxable-equivalent net
interest income $ 482,005 $ 499,432 $ 480,670
Taxable-equivalent revenue 752,745 1,084,776 335,408
Net interest income 476,050 493,688 474,775
Noninterest income 270,740 585,344 (145,262)
Provision for loan losses 565,930 762,654 297,624
Noninterest expense 434,707 419,469 376,205
Impairment loss on goodwill -- -- 633,992
Income (loss) before income
taxes (253,847) (103,091) (978,308)
Income taxes (benefit) (98,565) (34,239) (151,727)
Net income (loss) (155,282) (68,852) (826,581)
Net income (loss) applicable
to noncontrolling interests (2,394) (1,209) (540)
Net income (loss) applicable
to controlling interest (152,888) (67,643) (826,041)
Net earnings (loss) applicable
to common shareholders (179,491) (40,672) (852,327)
PER COMMON SHARE
Net earnings (loss) (diluted) (1.41) (0.35) (7.47)
Dividends 0.01 0.04 0.04
Book value per common share 29.16 32.50 34.39
SELECTED RATIOS
Return on average assets (1.13)% (0.50)% (6.05)%
Return on average common equity (17.19)% (4.06)% (70.07)%
Efficiency ratio 57.75 % 38.67 % 112.16 %
Net interest margin 3.91 % 4.09 % 3.93 %
Three Months Ended
-----------------------
Dec. 31, Sept. 30,
2008 2008
---------- ----------
EARNINGS
Taxable-equivalent net
interest income $ 514,422 $ 497,822
Taxable-equivalent revenue 432,132 587,432
Net interest income 508,442 492,003
Noninterest income (82,290) 89,610
Provision for loan losses 285,189 156,606
Noninterest expense 398,167 372,276
Impairment loss on goodwill 353,804 --
Income (loss) before income
taxes (611,008) 52,731
Income taxes (benefit) (126,512) 11,214
Net income (loss) (484,496) 41,517
Net income (loss) applicable
to noncontrolling interests (1,520) 3,757
Net income (loss) applicable
to controlling interest (482,976) 37,760
Net earnings (loss) applicable
to common shareholders (498,084) 33,351
PER COMMON SHARE
Net earnings (loss) (diluted) (4.37) 0.31
Dividends 0.32 0.43
Book value per common share 42.65 45.78
SELECTED RATIOS
Return on average assets (3.52)% 0.28 %
Return on average common equity (38.77)% 2.59 %
Efficiency ratio 92.14 % 63.37 %
Net interest margin 4.20 % 4.13 %
ZIONS BANCORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended
-------------------------------------
(In thousands, except share Sept. 30, June 30, March 31,
and ratio data) 2009 2009 2009
----------- ----------- -----------
AVERAGE BALANCES
Total assets $53,600,060 $54,070,154 $55,399,675
Total interest-earning assets 48,950,422 49,018,640 49,581,062
Securities 4,758,872 4,907,115 4,486,050
Net loans and leases 42,135,431 41,910,940 41,888,624
Goodwill 1,017,387 1,017,382 1,654,222
Core deposit and other
intangibles 126,614 125,768 126,759
Total deposits 43,349,431 42,958,798 42,128,652
Shareholders' equity:
Preferred equity 1,514,675 1,587,752 1,583,659
Common equity 4,142,749 4,016,134 4,932,977
Noncontrolling interests 22,810 25,268 27,720
Weighted average common and
common-equivalent shares
outstanding 127,581,404 115,908,127 114,106,164
AT PERIOD END
Total assets $53,403,672 $52,874,957 $54,545,012
Total interest-earning assets 48,711,261 48,024,659 49,267,000
Securities 4,500,906 4,920,445 4,800,957
Net loans and leases 41,673,036 41,399,533 41,932,315
Allowance for loan losses 1,432,715 1,248,055 832,878
Reserve for unfunded lending
commitments 97,225 60,688 52,761
Goodwill 1,017,385 1,017,385 1,034,465
Core deposit and other
intangibles 123,551 121,675 124,585
Total deposits 43,007,981 42,644,172 43,307,233
Shareholders' equity:
Preferred equity 1,524,722 1,491,730 1,587,027
Common equity 3,977,633 4,066,202 3,965,979
Noncontrolling interests 21,533 24,021 26,828
Common shares outstanding 136,398,089 125,095,328 115,335,668
Average equity to average
assets 10.60% 10.41% 11.81%
Common dividend payout na na na
Tangible common equity ratio 5.43% 5.66% 5.26%
Tangible equity ratio 8.39% 8.59% 8.28%
Nonperforming assets,
excluding FDIC-supported
assets $ 2,171,014 $ 1,922,557 $ 1,647,913
Ratio of nonperforming assets,
excluding FDIC-supported
assets, to net loans and
leases and other real estate
owned 5.40% 4.68% 3.96%
Accruing loans past due
90 days or more, excluding
FDIC-supported assets $ 186,519 $ 178,300 $ 88,035
Three Months Ended
---------------------------
Dec. 31, Sept. 30,
2008 2008
----------- -----------
AVERAGE BALANCES
Total assets $54,546,364 $54,279,760
Total interest-earning assets 48,708,673 47,984,725
Securities 4,516,559 4,582,727
Net loans and leases 41,769,536 41,824,097
Goodwill 1,720,536 2,009,509
Core deposit and other
intangibles 130,703 132,167
Total deposits 39,580,867 37,321,656
Shareholders' equity:
Preferred equity 961,072 282,500
Common equity 5,110,430 5,123,399
Noncontrolling interests 28,751 29,949
Weighted average common and
common-equivalent shares
outstanding 114,065,100 108,497,464
AT PERIOD END
Total assets $55,092,791 $53,974,168
Total interest-earning assets 49,071,281 47,656,065
Securities 4,509,308 4,755,359
Net loans and leases 41,658,738 41,735,598
Allowance for loan losses 686,999 609,433
Reserve for unfunded lending
commitments 50,934 23,574
Goodwill 1,651,377 2,009,504
Core deposit and other
intangibles 125,935 133,989
Total deposits 41,316,496 38,590,901
Shareholders' equity:
Preferred equity 1,581,834 286,949
Common equity 4,919,862 5,279,078
Noncontrolling interests 27,320 30,288
Common shares outstanding 115,344,813 115,302,598
Average equity to average
assets 11.18% 10.01%
Common dividend payout na 138.44%
Tangible common equity ratio 5.89% 6.05%
Tangible equity ratio 8.91% 6.66%
Nonperforming assets,
excluding FDIC-supported
assets $ 1,138,375 $ 922,339
Ratio of nonperforming assets,
excluding FDIC-supported
assets, to net loans and
leases and other real estate
owned 2.71% 2.19%
Accruing loans past due
90 days or more, excluding
FDIC-supported assets $ 129,567 $ 97,831
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Sept. 30, June 30, March 31,
(In thousands, except 2009 2009 2009
share amounts) ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 992,940 $ 1,229,205 $ 1,321,972
Money market investments:
Interest-bearing deposits and
commercial paper 2,234,337 1,005,060 1,952,555
Federal funds sold 44,056 390,619 13,277
Security resell agreements 52,539 57,476 305,111
Investment securities:
Held-to-maturity, at adjusted
cost (approximate fair value
$835,814, $891,186,
$1,361,460, $1,443,555, and
$1,587,006) 877,105 937,942 1,648,971
Available-for-sale, at fair
value 3,547,092 3,903,895 3,086,788
Trading account, at fair
value (includes $0, $0, $0,
$538, and $531 transferred
as collateral under
repurchase agreements) 76,709 78,608 65,198
----------- ----------- -----------
4,500,906 4,920,445 4,800,957
Loans held for sale 206,387 251,526 262,785
Loans:
Loans and leases excluding
FDIC-supported assets 39,782,240 40,654,802 41,220,610
FDIC-supported assets 2,025,425 874,773 836,454
----------- ----------- -----------
41,807,665 41,529,575 42,057,064
Less:
Unearned income and fees,
net of related costs 134,629 130,042 124,749
Allowance for loan losses 1,432,715 1,248,055 832,878
----------- ----------- -----------
Loans and leases, net of
allowance 40,240,321 40,151,478 41,099,437
Other noninterest-bearing
investments 1,061,464 1,046,131 1,051,956
Premises and equipment, net 698,225 703,613 701,742
Goodwill 1,017,385 1,017,385 1,034,465
Core deposit and other
intangibles 123,551 121,675 124,585
Other real estate owned 359,187 293,857 226,634
Other assets 1,872,374 1,686,487 1,649,536
----------- ----------- -----------
$53,403,672 $52,874,957 $54,545,012
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing demand $11,453,247 $11,142,017 $10,517,910
Interest-bearing:
Savings and NOW 5,392,096 4,949,711 4,710,899
Money market 17,413,735 17,276,743 18,103,564
Time under $100,000 2,784,593 2,845,893 3,112,864
Time $100,000 and over 3,949,684 4,455,225 4,647,015
Foreign 2,014,626 1,974,583 2,214,981
----------- ----------- -----------
43,007,981 42,644,172 43,307,233
Securities sold, not yet
purchased 39,360 51,109 39,892
Federal funds purchased 1,008,181 1,169,809 1,213,970
Security repurchase agreements 509,014 565,975 551,686
Other liabilities 651,139 597,543 578,768
Commercial paper 2,449 1,019 984
Federal Home Loan Bank
advances and other borrowings:
One year or less 42,962 47,152 429,655
Over one year 18,803 18,882 127,680
Long-term debt 2,599,895 2,197,343 2,715,310
----------- ----------- -----------
Total liabilities 47,879,784 47,293,004 48,965,178
----------- ----------- -----------
Shareholders' equity:
Preferred stock, without
par value, authorized
3,000,000 shares 1,524,722 1,491,730 1,587,027
Common stock, without
par value; authorized
350,000,000 shares; issued
and outstanding 136,398,089,
125,095,328, 115,335,668,
115,344,813, and 115,302,598
shares 2,974,256 2,779,896 2,607,541
Retained earnings 1,487,707 1,668,608 1,713,897
Accumulated other
comprehensive income (loss) (469,112) (368,164) (340,727)
Deferred compensation (15,218) (14,138) (14,732)
----------- ----------- -----------
Controlling interest
shareholders' equity 5,502,355 5,557,932 5,553,006
Noncontrolling interests 21,533 24,021 26,828
----------- ----------- -----------
Total shareholders' equity 5,523,888 5,581,953 5,579,834
----------- ----------- -----------
$53,403,672 $52,874,957 $54,545,012
=========== =========== ===========
Dec. 31, Sept. 30,
(In thousands, except 2008 2008
share amounts) ----------- -----------
(Unaudited)
ASSETS
Cash and due from banks $ 1,475,976 $ 1,441,957
Money market investments:
Interest-bearing deposits and
commercial paper 2,332,759 568,875
Federal funds sold 83,451 274,129
Security resell agreements 286,707 170,009
Investment securities:
Held-to-maturity, at adjusted
cost (approximate fair value
$835,814, $891,186,
$1,361,460, $1,443,555, and
$1,587,006) 1,790,989 1,917,354
Available-for-sale, at fair
value 2,676,255 2,792,236
Trading account, at fair
value (includes $0, $0, $0,
$538, and $531 transferred
as collateral under
repurchase agreements) 42,064 45,769
----------- -----------
4,509,308 4,755,359
Loans held for sale 200,318 152,095
Loans:
Loans and leases excluding
FDIC-supported assets 41,791,237 41,876,371
FDIC-supported assets -- --
----------- -----------
41,791,237 41,876,371
Less:
Unearned income and fees,
net of related costs 132,499 140,773
Allowance for loan losses 686,999 609,433
----------- -----------
Loans and leases, net of
allowance 40,971,739 41,126,165
Other noninterest-bearing
investments 1,044,092 1,170,367
Premises and equipment, net 687,096 675,480
Goodwill 1,651,377 2,009,504
Core deposit and other
intangibles 125,935 133,989
Other real estate owned 191,792 156,817
Other assets 1,532,241 1,339,422
----------- -----------
$55,092,791 $53,974,168
=========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing demand $ 9,683,385 $ 9,413,484
Interest-bearing:
Savings and NOW 4,452,919 4,341,873
Money market 16,826,846 14,087,288
Time under $100,000 2,974,566 2,954,116
Time $100,000 and over 4,756,218 4,468,225
Foreign 2,622,562 3,325,915
----------- -----------
41,316,496 38,590,901
Securities sold, not yet
purchased 35,657 29,528
Federal funds purchased 965,835 1,179,197
Security repurchase agreements 899,751 734,379
Other liabilities 669,111 649,672
Commercial paper 15,451 40,493
Federal Home Loan Bank
advances and other borrowings:
One year or less 2,039,853 4,690,784
Over one year 128,253 128,855
Long-term debt 2,493,368 2,334,044
----------- -----------
Total liabilities 48,563,775 48,377,853
----------- -----------
Shareholders' equity:
Preferred stock, without
par value, authorized
3,000,000 shares 1,581,834 286,949
Common stock, without
par value; authorized
350,000,000 shares; issued
and outstanding 136,398,089,
125,095,328, 115,335,668,
115,344,813, and 115,302,598
shares 2,599,916 2,482,517
Retained earnings 2,433,363 2,968,242
Accumulated other
comprehensive income (loss) (98,958) (157,305)
Deferred compensation (14,459) (14,376)
----------- -----------
Controlling interest
shareholders' equity 6,501,696 5,566,027
Noncontrolling interests 27,320 30,288
----------- -----------
Total shareholders' equity 6,529,016 5,596,315
----------- -----------
$55,092,791 $53,974,168
=========== ===========
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
----------------------------------
(In thousands, except per Sept. 30, June 30, March 31,
share amounts) 2009 2009 2009
--------- --------- ---------
Interest income:
Interest and fees on loans $ 586,246 $ 583,590 $ 579,852
Interest on loans held for sale 2,434 3,082 2,756
Lease financing 5,125 4,735 4,593
Interest on money market
investments 1,195 1,543 3,376
Interest on securities:
Held-to-maturity - taxable 4,864 9,367 18,908
Held-to-maturity - nontaxable 5,806 5,796 6,265
Available-for-sale - taxable 23,460 26,982 21,703
Available-for-sale - nontaxable 1,830 1,778 1,678
Trading account 842 823 571
--------- --------- ---------
Total interest income 631,802 637,696 639,702
--------- --------- ---------
Interest expense:
Interest on savings and money
market deposits 54,554 64,949 74,553
Interest on time and foreign
deposits 42,780 52,577 62,679
Interest on short-term borrowings 2,325 3,661 6,020
Interest on long-term borrowings 56,093 22,821 21,675
--------- --------- ---------
Total interest expense 155,752 144,008 164,927
--------- --------- ---------
Net interest income 476,050 493,688 474,775
Provision for loan losses 565,930 762,654 297,624
--------- --------- ---------
Net interest income after
provision for loan losses (89,880) (268,966) 177,151
--------- --------- ---------
Noninterest income:
Service charges and fees on
deposit accounts 54,466 51,833 52,788
Other service charges,
commissions and fees 39,227 40,291 38,227
Trust and wealth management
income 8,209 8,750 7,165
Capital markets and foreign
exchange 12,106 16,311 13,204
Dividends and other investment
income 2,597 2,684 8,408
Loan sales and servicing income 2,359 7,040 5,851
Income (loss) from securities
conduit -- (149) 1,235
Fair value and nonhedge
derivative income (loss) 58,092 20,316 4,004
Equity securities gains
(losses), net (1,805) (619) 2,763
Fixed income securities gains
(losses), net 1,900 1,444 195
Impairment losses on investment
securities:
Impairment losses on investment
securities (198,378) (71,515) (165,616)
Noncredit-related losses on
securities not expected to be
sold (recognized in other
comprehensive income) 141,863 29,546 82,943
--------- --------- ---------
Net impairment losses on
investment securities (56,515) (41,969) (82,673)
Valuation losses on securities
purchased -- (11,701) (200,391)
Gains on swap termination and
debt modification -- 466,333 --
Acquisition related gains 146,153 22,977 --
Other 3,951 1,803 3,962
--------- --------- ---------
Total noninterest income 270,740 585,344 (145,262)
--------- --------- ---------
Noninterest expense:
Salaries and employee benefits 205,433 202,420 204,161
Occupancy, net 28,556 26,651 28,327
Furniture and equipment 25,320 24,870 24,999
Other real estate expense 30,419 23,748 18,343
Legal and professional services 9,076 9,497 8,543
Postage and supplies 7,680 8,036 8,410
Advertising 4,418 5,678 7,148
FDIC premiums 19,820 42,329 14,171
Amortization of core deposit
and other intangibles 7,575 7,078 6,886
Provision for unfunded lending
commitments 36,537 7,927 1,827
Other 59,873 61,235 53,390
--------- --------- ---------
Total noninterest expense 434,707 419,469 376,205
--------- --------- ---------
Impairment loss on goodwill -- -- 633,992
--------- --------- ---------
Income (loss) before income
taxes (253,847) (103,091) (978,308)
Income taxes (benefit) (98,565) (34,239) (151,727)
--------- --------- ---------
Net income (loss) (155,282) (68,852) (826,581)
Net income (loss) applicable to
noncontrolling interest (2,394) (1,209) (540)
--------- --------- ---------
Net income (loss) applicable
to controlling interest (152,888) (67,643) (826,041)
Preferred stock dividends (26,603) (25,447) (26,286)
Preferred stock redemption -- 52,418 --
--------- --------- ---------
Net earnings (loss) applicable
to common shareholders $(179,491) $ (40,672) $(852,327)
========= ========= =========
Weighted average common shares
outstanding during the period:
Basic shares 127,581 115,908 114,106
Diluted shares 127,581 115,908 114,106
Net earnings (loss) per common
share:
Basic $ (1.41) $ (0.35) $ (7.47)
Diluted (1.41) (0.35) (7.47)
Three Months Ended
----------------------
(In thousands, except per Dec. 31, Sept. 30,
share amounts) 2008 2008
--------- ---------
Interest income:
Interest and fees on loans $ 650,885 $ 663,677
Interest on loans held for sale 2,442 1,916
Lease financing 4,999 5,515
Interest on money market
investments 7,172 9,267
Interest on securities:
Held-to-maturity - taxable 22,317 21,780
Held-to-maturity - nontaxable 6,396 6,319
Available-for-sale - taxable 28,680 25,044
Available-for-sale - nontaxable 1,711 1,697
Trading account 598 437
--------- ---------
Total interest income 725,200 735,652
--------- ---------
Interest expense:
Interest on savings and money
market deposits 95,717 90,720
Interest on time and foreign
deposits 77,806 74,837
Interest on short-term borrowings 20,368 50,164
Interest on long-term borrowings 22,867 27,928
--------- ---------
Total interest expense 216,758 243,649
--------- ---------
Net interest income 508,442 492,003
Provision for loan losses 285,189 156,606
--------- ---------
Net interest income after
provision for loan losses 223,253 335,397
--------- ---------
Noninterest income:
Service charges and fees on
deposit accounts 52,641 53,695
Other service charges,
commissions and fees 40,532 42,794
Trust and wealth management
income 8,910 8,865
Capital markets and foreign
exchange 15,048 12,257
Dividends and other investment
income 16,001 7,042
Loan sales and servicing income 4,420 3,633
Income (loss) from securities
conduit 1,542 336
Fair value and nonhedge
derivative income (loss) (5,819) (26,155)
Equity securities gains
(losses), net (14,125) 12,971
Fixed income securities gains
(losses), net (1,139) 135
Impairment losses on investment
securities:
Impairment losses on investment
securities (196,472) (28,022)
Noncredit-related losses on
securities not expected to be
sold (recognized in other
comprehensive income) -- --
--------- ---------
Net impairment losses on
investment securities (196,472) (28,022)
Valuation losses on securities
purchased (7,868) --
Gains on swap termination and
debt modification -- --
Acquisition related gains -- --
Other 4,039 2,059
--------- ---------
Total noninterest income (82,290) 89,610
--------- ---------
Noninterest expense:
Salaries and employee benefits 190,861 208,995
Occupancy, net 29,460 30,552
Furniture and equipment 26,507 24,281
Other real estate expense 40,124 7,126
Legal and professional services 14,774 11,297
Postage and supplies 9,873 9,257
Advertising 10,078 6,782
FDIC premiums 5,745 5,286
Amortization of core deposit
and other intangibles 8,055 8,096
Provision for unfunded lending
commitments (577) (3,264)
Other 63,267 63,868
--------- ---------
Total noninterest expense 398,167 372,276
--------- ---------
Impairment loss on goodwill 353,804 --
--------- ---------
Income (loss) before income
taxes (611,008) 52,731
Income taxes (benefit) (126,512) 11,214
--------- ---------
Net income (loss) (484,496) 41,517
Net income (loss) applicable to
noncontrolling interest (1,520) 3,757
--------- ---------
Net income (loss) applicable
to controlling interest (482,976) 37,760
Preferred stock dividends (15,108) (4,409)
Preferred stock redemption -- --
--------- ---------
Net earnings (loss) applicable
to common shareholders $(498,084) $ 33,351
========= =========
Weighted average common shares
outstanding during the period:
Basic shares 114,065 108,407
Diluted shares 114,065 108,497
Net earnings (loss) per common
share:
Basic $ (4.37) $ 0.31
Diluted (4.37) 0.31
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Unaudited)
Nine Months Ended
(In thousands, except per share amounts) September 30,
------------------------
2009 2008
----------- -----------
Interest income:
Interest and fees on loans $ 1,749,688 $ 1,995,227
Interest on loans held for sale 8,272 7,632
Lease financing 14,453 17,100
Interest on money market investments 6,114 40,608
Interest on securities:
Held-to-maturity - taxable 33,139 39,965
Held-to-maturity - nontaxable 17,867 18,972
Available-for-sale - taxable 72,145 122,459
Available-for-sale - nontaxable 5,286 5,459
Trading account 2,236 1,277
----------- -----------
Total interest income 1,909,200 2,248,699
----------- -----------
Interest expense:
Interest on savings and money market
deposits 194,056 274,851
Interest on time and foreign deposits 158,036 264,519
Interest on short-term borrowings 12,006 158,507
Interest on long-term borrowings 100,589 87,618
----------- -----------
Total interest expense 464,687 785,495
----------- -----------
Net interest income 1,444,513 1,463,204
Provision for loan losses 1,626,208 363,080
----------- -----------
Net interest income after provision
for loan losses (181,695) 1,100,124
----------- -----------
Noninterest income:
Service charges and fees on deposit
accounts 159,087 154,347
Other service charges, commissions
and fees 117,745 127,137
Trust and wealth management income 24,124 28,842
Capital markets and foreign exchange 41,621 34,850
Dividends and other investment income 13,689 30,361
Loan sales and servicing income 15,250 19,959
Income from securities conduit 1,086 3,960
Fair value and nonhedge derivative
income (loss) 82,412 (42,157)
Equity securities gains, net 339 14,918
Fixed income securities gains, net 3,539 1,988
Impairment losses on investment securities:
Impairment losses on investment securities (435,509) (107,568)
Noncredit-related losses on securities
not expected to be sold (recognized in
other comprehensive income) 254,352 --
----------- -----------
Net impairment losses on investment
securities (181,157) (107,568)
Valuation losses on securities purchased (212,092) (5,204)
Gains on swap termination and debt
modification 466,333 --
Acquisition related gains 169,130 --
Other 9,716 11,549
----------- -----------
Total noninterest income 710,822 272,982
----------- -----------
Noninterest expense:
Salaries and employee benefits 612,014 619,640
Occupancy, net 83,534 84,715
Furniture and equipment 75,189 73,629
Other real estate expense 72,510 10,254
Legal and professional services 27,116 30,743
Postage and supplies 24,126 27,582
Advertising 17,244 20,653
FDIC premiums 76,320 14,113
Amortization of core deposit and other
intangibles 21,539 25,107
Provision for unfunded lending commitments 46,291 2,044
Other 174,498 168,316
----------- -----------
Total noninterest expense 1,230,381 1,076,796
----------- -----------
Impairment loss on goodwill 633,992 --
----------- -----------
Income (loss) before income taxes (1,335,246) 296,310
Income taxes (benefit) (284,531) 83,147
----------- -----------
Net income (loss) (1,050,715) 213,163
Net loss applicable to noncontrolling
interests (4,143) (3,544)
----------- -----------
Net income (loss) applicable to
controlling interest (1,046,572) 216,707
Preferred stock dividends (78,336) (9,316)
Preferred stock redemption 52,418 --
----------- -----------
Net earnings (loss) applicable to
common shareholders $(1,072,490) $ 207,391
=========== ===========
Weighted average common shares outstanding
during the period:
Basic shares 119,248 107,176
Diluted shares 119,248 107,333
Net earnings (loss) per common share:
Basic $ (8.99) $ 1.94
Diluted (8.99) 1.93
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except per Preferred Common Retained
share amounts) stock stock earnings
---------- ---------- ----------
Balance, December 31, 2008 $1,581,834 $2,599,916 $2,433,363
Cumulative effect of change
in accounting principle,
adoption of FSP FAS 115-2
and 124-2 137,462
Comprehensive loss:
Net loss for the period (826,041)
Other comprehensive income
(loss), net of tax:
Net realized and
unrealized holding
losses on investments
and retained interests
Reclassification for net
realized losses on
investments recorded in
operations
Noncredit-related
impairment losses on
securities not expected
to be sold
Accretion of securities
with noncredit-related
impairment losses not
expected to be sold
Net unrealized losses on
derivative instruments
Other comprehensive loss
Total comprehensive loss
Dividends on preferred
stock 5,193 (26,286)
Net stock issued under
employee plans and
related tax benefits 7,625
Dividends on common stock,
$.04 per share (4,601)
Change in deferred
compensation
Other changes in
noncontrolling interests
---------- ---------- ----------
Balance, March 31, 2009 1,587,027 2,607,541 1,713,897
Comprehensive loss:
Net loss for the period (67,643)
Other comprehensive income
(loss), net of tax:
Net realized and
unrealized holding gains
on investments and
retained interests
Reclassification for net
realized losses on
investments recorded in
operations
Noncredit-related
impairment losses on
securities not expected
to be sold
Accretion of securities
with noncredit-related
impairment losses not
expected to be sold
Net unrealized losses on
derivative instruments
Other comprehensive loss
Total comprehensive loss
Preferred stock redemption (100,511) 1,763 52,418
Dividends on preferred stock 5,214 (25,447)
Issuance of common stock 123,741
Subordinated debt
modification 45,326
Net stock issued under
employee plans and related
tax benefits 1,525
Dividends on common stock,
$.04 per share (4,617)
Change in deferred
compensation
Other changes in
noncontrolling interests
---------- ---------- ----------
Balance, June 30, 2009 1,491,730 2,779,896 1,668,608
Comprehensive loss:
Net loss for the period (152,888)
Other comprehensive income
(loss), net of tax:
Net realized and
unrealized holding losses
on investments and
retained interests
Reclassification for net
realized losses on
investments recorded in
operations
Noncredit-related
impairment losses on
securities not expected
to be sold
Accretion of securities
with noncredit-related
impairment losses not
expected to be sold
Net unrealized losses on
derivative instruments
Other comprehensive loss
Total comprehensive loss
Subordinated debt converted
to preferred stock 27,757
Preferred stock redemption (152)
Dividends on preferred stock 5,235 (26,603)
Issuance of common stock 187,518
Net stock issued under
employee plans and related
tax benefits 6,842
Dividends on common stock,
$.01 per share (1,258)
Change in deferred
compensation
Other changes in
noncontrolling interests
---------- ---------- ----------
Balance, September 30, 2009 $1,524,722 $2,974,256 $1,487,707
========== ========== ==========
Accumu-
lated
other
compre- Total
(In thousands, except per hensive Deferred Noncon- share-
share amounts) income compen- trolling holders'
(loss) sation interests equity
--------- -------- --------- ----------
Balance, December 31, 2008 ($98,958) ($14,459) $27,320 $6,529,016
Cumulative effect of change
in accounting principle,
adoption of FSP FAS 115-2
and 124-2 (137,462) --
Comprehensive loss:
Net loss for the period (540) (826,581)
Other comprehensive income
(loss), net of tax:
Net realized and
unrealized holding
losses on investments
and retained interests (83,553)
Reclassification for net
realized losses on
investments recorded in
operations 38,862
Noncredit-related
impairment losses on
securities not expected
to be sold (49,928)
Accretion of securities
with noncredit-related
impairment losses not
expected to be sold 896
Net unrealized losses on
derivative instruments (10,584)
---------
Other comprehensive loss (104,307) (104,307)
----------
Total comprehensive loss (930,888)
Dividends on preferred
stock (21,093)
Net stock issued under
employee plans and
related tax benefits 7,625
Dividends on common stock,
$.04 per share (4,601)
Change in deferred
compensation (273) (273)
Other changes in
noncontrolling interests 48 48
--------- -------- --------- ----------
Balance, March 31, 2009 (340,727) (14,732) 26,828 5,579,834
Comprehensive loss:
Net loss for the period (1,209) (68,852)
Other comprehensive income
(loss), net of tax:
Net realized and
unrealized holding gains
on investments and
retained interests 5,041
Reclassification for net
realized losses on
investments recorded in
operations 24,434
Noncredit-related
impairment losses on
securities not expected
to be sold (17,855)
Accretion of securities
with noncredit-related
impairment losses not
expected to be sold 35
Net unrealized losses on
derivative instruments (39,092)
---------
Other comprehensive loss (27,437) (27,437)
----------
Total comprehensive loss (96,289)
Preferred stock redemption (46,330)
Dividends on preferred stock (20,233)
Issuance of common stock 123,741
Subordinated debt
modification 45,326
Net stock issued under
employee plans and related
tax benefits 1,525
Dividends on common stock,
$.04 per share (4,617)
Change in deferred
compensation 594 594
Other changes in
noncontrolling interests (1,598) (1,598)
--------- -------- --------- ----------
Balance, June 30, 2009 (368,164) (14,138) 24,021 5,581,953
Comprehensive loss:
Net loss for the period (2,394) (155,282)
Other comprehensive income
(loss), net of tax:
Net realized and
unrealized holding losses
on investments and
retained interests (6,045)
Reclassification for net
realized losses on
investments recorded in
operations 33,249
Noncredit-related
impairment losses on
securities not expected
to be sold (82,194)
Accretion of securities
with noncredit-related
impairment losses not
expected to be sold 32
Net unrealized losses on
derivative instruments (45,990)
---------
Other comprehensive loss (100,948) (100,948)
----------
Total comprehensive loss (256,230)
Subordinated debt converted
to preferred stock 27,757
Preferred stock redemption (152)
Dividends on preferred stock (21,368)
Issuance of common stock 187,518
Net stock issued under
employee plans and related
tax benefits 6,842
Dividends on common stock,
$.01 per share (1,258)
Change in deferred
compensation (1,080) (1,080)
Other changes in
noncontrolling interests (94) (94)
--------- -------- --------- ----------
Balance, September 30, 2009 ($469,112) ($15,218) $21,533 $5,523,888
========= ======== ========= ==========
ZIONS BANCORPORATION AND SUBSIDIARIES
INVESTMENT SECURITIES PORTFOLIO
ASSET-BACKED SECURITIES CLASSIFIED AT HIGHEST CREDIT RATING*
As of September 30, 2009
(Unaudited)
Net
unrealized
gains
(losses)
Par Amortized recognized
(In thousands) value cost in OCI(1)
---------- ---------- ----------
HELD-TO-MATURITY:
Municipal securities $ 613,428 $ 610,661 $ --
Asset-backed securities:
Trust preferred securities -
predominantly bank
A rated 1,378 1,378 (71)
A rated - OTTI 551 549 (104)
Noninvestment grade 87,820 87,667 (10,658)
---------- ---------- ----------
89,749 89,594 (10,833)
---------- ---------- ----------
Trust preferred securities -
predominantly insurance
A rated 10,000 10,000 (1,311)
BBB rated 16,699 16,699 (1,876)
Noninvestment grade 149,000 149,000 (11,544)
---------- ---------- ----------
175,699 175,699 (14,731)
---------- ---------- ----------
Other
AAA rated 4,240 4,059 (86)
A rated 3,702 3,140 (967)
BBB rated 18,000 16,624 (54)
Noninvestment grade -
OTTI/PIK'd(2) 12,413 8,481 (4,582)
---------- ---------- ----------
38,355 32,304 (5,689)
---------- ---------- ----------
Other debt securities 100 100 --
---------- ---------- ----------
917,331 908,358 (31,253)
---------- ---------- ----------
AVAILABLE-FOR-SALE:
U.S. Treasury securities 41,153 40,631 645
U.S. Government agencies and
corporations:
Agency securities 242,958 243,371 6,006
Agency guaranteed mortgage-
backed securities 385,516 386,417 11,929
Small Business Administration
loan-backed securities 753,296 799,313 (18,859)
Municipal securities 247,857 241,214 4,986
Asset-backed securities:
Trust preferred securities -
predominantly bank
AAA rated 80,290 79,555 (12,092)
AA rated 530,750 380,951 28
A rated 316,935 307,840 (96,296)
A rated - OTTI 50,000 45,615 (18,286)
BBB rated 163,696 139,492 (33,861)
Not rated 229 -- --
Noninvestment grade 40,380 34,248 (10,901)
Noninvestment grade -
OTTI/PIK'd(2) 943,389 824,506 (540,574)
---------- ---------- ----------
2,125,669 1,812,207 (711,982)
---------- ---------- ----------
Trust preferred securities -
predominantly insurance
AAA rated 5,332 5,332 (112)
AA rated 104,149 95,783 (540)
Not rated 791 -- --
Noninvestment grade 194,473 194,562 (27,107)
---------- ---------- ----------
304,745 295,677 (27,759)
---------- ---------- ----------
Trust preferred securities -
single banks
A rated 1,000 1,006 (49)
Not rated 25,000 25,003 (2,796)
---------- ---------- ----------
26,000 26,009 (2,845)
---------- ---------- ----------
Trust preferred securities -
real estate investment trusts
Noninvestment grade 25,000 16,191 (2,903)
Noninvestment grade -
OTTI/PIK'd(2) 70,000 51,375 (37,562)
---------- ---------- ----------
95,000 67,566 (40,465)
---------- ---------- ----------
Auction rate securities
AAA rated 174,350 160,410 (2,030)
A rated 4,300 1,825 1,183
BBB rated 3,000 2,871 5
---------- ---------- ----------
181,650 165,106 (842)
---------- ---------- ----------
Other
AAA rated 50,395 48,454 (11,224)
AA rated 3,318 1,889 578
A rated 51,075 49,332 (18,699)
BBB rated 2,192 710 (93)
Noninvestment grade 9,848 6,695 (2,042)
Noninvestment grade -
OTTI/PIK'd(2) 95,012 39,438 (21,052)
---------- ---------- ----------
211,840 146,518 (52,532)
---------- ---------- ----------
4,615,684 4,224,029 (831,718)
---------- ---------- ----------
Other securities:
Mutual funds and stock 154,770 154,770 11
---------- ---------- ----------
4,770,454 4,378,799 (831,707)
---------- ---------- ----------
Total $5,687,785 $5,287,157 $ (862,960)
========== ========== ==========
Net
unrealized
gains
(losses)
not Estimated
Carrying recognized fair
(In thousands) value in OCI(1) value
---------- ---------- ----------
HELD-TO-MATURITY:
Municipal securities $ 610,661 $ 4,917 $ 615,578
Asset-backed securities:
Trust preferred securities -
predominantly bank
A rated 1,307 (183) 1,124
A rated - OTTI 445 4 449
Noninvestment grade 77,009 (23,648) 53,361
---------- ---------- ----------
78,761 (23,827) 54,934
---------- ---------- ----------
Trust preferred securities -
predominantly insurance
A rated 8,689 (880) 7,809
BBB rated 14,823 (1,719) 13,104
Noninvestment grade 137,456 (11,096) 126,360
---------- ---------- ----------
160,968 (13,695) 147,273
---------- ---------- ----------
Other
AAA rated 3,973 (180) 3,793
A rated 2,173 546 2,719
BBB rated 16,570 (8,819) 7,751
Noninvestment grade -
OTTI/PIK'd(2) 3,899 (231) 3,668
---------- ---------- ----------
26,615 (8,684) 17,931
---------- ---------- ----------
Other debt securities 100 (2) 98
---------- ---------- ----------
877,105 (41,291) 835,814
---------- ---------- ----------
AVAILABLE-FOR-SALE:
U.S. Treasury securities 41,276 41,276
U.S. Government agencies and
corporations:
Agency securities 249,377 249,377
Agency guaranteed mortgage-
backed securities 398,346 398,346
Small Business Administration
loan-backed securities 780,454 780,454
Municipal securities 246,200 246,200
Asset-backed securities:
Trust preferred securities -
predominantly bank
AAA rated 67,463 67,463
AA rated 380,979 380,979
A rated 211,544 211,544
A rated - OTTI 27,329 27,329
BBB rated 105,631 105,631
Not rated -- --
Noninvestment grade 23,347 23,347
Noninvestment grade -
OTTI/PIK'd(2) 283,932 283,932
---------- ----------
1,100,225 1,100,225
---------- ----------
Trust preferred securities -
predominantly insurance
AAA rated 5,220 5,220
AA rated 95,243 95,243
Not rated -- --
Noninvestment grade 167,455 167,455
---------- ----------
267,918 267,918
---------- ----------
Trust preferred securities -
single banks
A rated 957 957
Not rated 22,207 22,207
---------- ----------
23,164 23,164
---------- ----------
Trust preferred securities -
real estate investment trusts
Noninvestment grade 13,288 13,288
Noninvestment grade -
OTTI/PIK'd(2) 13,813 13,813
---------- ----------
27,101 27,101
---------- ----------
Auction rate securities
AAA rated 158,380 158,380
A rated 3,008 3,008
BBB rated 2,876 2,876
---------- ----------
164,264 164,264
---------- ----------
Other
AAA rated 37,230 37,230
AA rated 2,467 2,467
A rated 30,633 30,633
BBB rated 617 617
Noninvestment grade 4,653 4,653
Noninvestment grade -
OTTI/PIK'd(2) 18,386 18,386
---------- ----------
93,986 93,986
---------- ----------
3,392,311 3,392,311
---------- ----------
Other securities:
Mutual funds and stock 154,781 154,781
---------- ----------
3,547,092 3,547,092
---------- ----------
Total $4,424,197 $ (41,291) $4,382,906
========== ========== ==========
* Ratings categories include entire range. For example, "A rated"
includes A+, A and A-. Split rated securities with more than one
rating are categorized at the highest rating level.
(1) Other comprehensive income. All amounts reported are pretax.
(2) Consists of securities determined to have Other Than Temporary
Impairment ("OTTI") and/or securities whose most recent interest
payment was capitalized as opposed to being paid in cash, as
permitted under the terms of the security. This capitalization
feature is known as Payment In Kind ("PIK") and where exercised
the security is called PIK'd.
ZIONS BANCORPORATION AND SUBSIDIARIES
INVESTMENT SECURITIES PORTFOLIO
ASSET-BACKED SECURITIES CLASSIFIED AT LOWEST CREDIT RATING*
As of September 30, 2009
(Unaudited)
Net
unrealized
gains
(losses)
Par Amortized recognized
(In thousands) value cost in OCI(1)
---------- ---------- ----------
HELD-TO-MATURITY:
Municipal securities $ 613,428 $ 610,661 $ --
Asset-backed securities:
Trust preferred securities -
predominantly bank
Noninvestment grade 89,198 89,045 (10,729)
Noninvestment grade - OTTI 551 549 (104)
---------- ---------- ----------
89,749 89,594 (10,833)
---------- ---------- ----------
Trust preferred securities -
predominantly insurance
Noninvestment grade 175,699 175,699 (14,731)
---------- ---------- ----------
175,699 175,699 (14,731)
---------- ---------- ----------
Other
A rated 4,240 4,059 (86)
Noninvestment grade 21,702 19,764 (1,021)
Noninvestment grade -
OTTI/PIK'd(2) 12,413 8,481 (4,582)
---------- ---------- ----------
38,355 32,304 (5,689)
---------- ---------- ----------
Other debt securities 100 100 --
---------- ---------- ----------
917,331 908,358 (31,253)
---------- ---------- ----------
AVAILABLE-FOR-SALE:
U.S. Treasury securities 41,153 40,631 645
U.S. Government agencies and
corporations:
Agency securities 242,958 243,371 6,006
Agency guaranteed mortgage-
backed securities 385,516 386,417 11,929
Small Business Administration
loan-backed securities 753,296 799,313 (18,859)
Municipal securities 247,857 241,214 4,986
Asset-backed securities:
Trust preferred securities -
predominantly bank
AA rated 46,831 46,462 (5,689)
A rated 116,123 89,691 1,119
BBB rated 255,061 179,518 18,405
Not rated 229 -- --
Noninvestment grade 714,035 626,415 (166,956)
Noninvestment grade -
OTTI/PIK'd(2) 993,390 870,121 (558,861)
---------- ---------- ----------
2,125,669 1,812,207 (711,982)
---------- ---------- ----------
Trust preferred securities -
predominantly insurance
AAA rated 5,332 5,332 (112)
AA rated 72,149 65,122 1,774
A rated 32,000 30,661 (2,314)
Not rated 791 -- --
Noninvestment grade 194,473 194,562 (27,107)
---------- ---------- ----------
304,745 295,677 (27,759)
---------- ---------- ----------
Trust preferred securities -
single banks
A rated 1,000 1,006 (49)
Not rated 25,000 25,003 (2,796)
---------- ---------- ----------
26,000 26,009 (2,845)
---------- ---------- ----------
Trust preferred securities -
real estate investment trusts
Noninvestment grade 25,000 16,191 (2,903)
Noninvestment grade -
OTTI/PIK'd(2) 70,000 51,375 (37,562)
---------- ---------- ----------
95,000 67,566 (40,465)
---------- ---------- ----------
Auction rate securities
AAA rated 167,550 154,219 (2,014)
BBB rated 7,300 4,696 1,187
Noninvestment grade 6,800 6,191 (15)
---------- ---------- ----------
181,650 165,106 (842)
---------- ---------- ----------
Other
AAA rated 10,975 9,516 840
AA rated 37,514 37,441 (12,343)
A rated 50,089 48,147 (18,439)
BBB rated 2,192 710 (93)
Noninvestment grade 16,058 11,266 (1,445)
Noninvestment grade -
OTTI/PIK'd(2) 95,012 39,438 (21,052)
---------- ---------- ----------
211,840 146,518 (52,532)
---------- ---------- ----------
4,615,684 4,224,029 (831,718)
---------- ---------- ----------
Other securities:
Mutual funds and stock 154,770 154,770 11
---------- ---------- ----------
4,770,454 4,378,799 (831,707)
---------- ---------- ----------
Total $5,687,785 $5,287,157 $ (862,960)
========== ========== ==========
Net
unrealized
gains
(losses)
not Estimated
Carrying recognized fair
(In thousands) value in OCI(1) value
---------- ---------- ----------
HELD-TO-MATURITY:
Municipal securities $ 610,661 $ 4,917 $ 615,578
Asset-backed securities:
Trust preferred securities -
predominantly bank
Noninvestment grade 78,316 (23,831) 54,485
Noninvestment grade - OTTI 445 4 449
---------- ---------- ----------
78,761 (23,827) 54,934
---------- ---------- ----------
Trust preferred securities -
predominantly insurance
Noninvestment grade 160,968 (13,695) 147,273
---------- ---------- ----------
160,968 (13,695) 147,273
---------- ---------- ----------
Other
A rated 3,973 (180) 3,793
Noninvestment grade 18,743 (8,273) 10,470
Noninvestment grade -
OTTI/PIK'd(2) 3,899 (231) 3,668
---------- ---------- ----------
26,615 (8,684) 17,931
---------- ---------- ----------
Other debt securities 100 (2) 98
---------- ---------- ----------
877,105 (41,291) 835,814
---------- ---------- ----------
AVAILABLE-FOR-SALE:
U.S. Treasury securities 41,276 41,276
U.S. Government agencies and
corporations:
Agency securities 249,377 249,377
Agency guaranteed mortgage-
backed securities 398,346 398,346
Small Business Administration
loan-backed securities 780,454 780,454
Municipal securities 246,200 246,200
Asset-backed securities:
Trust preferred securities -
predominantly bank
AA rated 40,773 40,773
A rated 90,810 90,810
BBB rated 197,923 197,923
Not rated -- --
Noninvestment grade 459,459 459,459
Noninvestment grade -
OTTI/PIK'd(2) 311,260 311,260
---------- ----------
1,100,225 1,100,225
---------- ----------
Trust preferred securities -
predominantly insurance
AAA rated 5,220 5,220
AA rated 66,896 66,896
A rated 28,347 28,347
Not rated -- --
Noninvestment grade 167,455 167,455
---------- ----------
267,918 267,918
---------- ----------
Trust preferred securities -
single banks
A rated 957 957
Not rated 22,207 22,207
---------- ----------
23,164 23,164
---------- ----------
Trust preferred securities -
real estate investment trusts
Noninvestment grade 13,288 13,288
Noninvestment grade -
OTTI/PIK'd(2) 13,813 13,813
---------- ----------
27,101 27,101
---------- ----------
Auction rate securities
AAA rated 152,205 152,205
BBB rated 5,883 5,883
Noninvestment grade 6,176 6,176
---------- ----------
164,264 164,264
---------- ----------
Other
AAA rated 10,356 10,356
AA rated 25,098 25,098
A rated 29,708 29,708
BBB rated 617 617
Noninvestment grade 9,821 9,821
Noninvestment grade -
OTTI/PIK'd(2) 18,386 18,386
---------- ----------
93,986 93,986
---------- ----------
3,392,311 3,392,311
---------- ----------
Other securities:
Mutual funds and stock 154,781 154,781
---------- ----------
3,547,092 3,547,092
---------- ----------
Total $4,424,197 $ (41,291) $4,382,906
========== ========== ==========
* Ratings categories include entire range. For example, "A rated"
includes A+, A and A-. Split rated securities with more than one
rating are categorized at the lowest rating level.
(1) Other comprehensive income. All amounts reported are pretax.
(2) Consists of securities determined to have Other Than Temporary
Impairment ("OTTI") and/or securities whose most recent interest
payment was capitalized as opposed to being paid in cash, as
permitted under the terms of the security. This capitalization
feature is known as Payment In Kind ("PIK") and where exercised
the security is called PIK'd.
ZIONS BANCORPORATION AND SUBSIDIARIES
Loan Balances By Portfolio Type
(Unaudited)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
(In millions) 2009 2009 2009 2008 2008
-------- -------- -------- -------- --------
Commercial
lending:
Commercial
and
industrial $ 10,124 $ 10,588 $ 10,958 $ 11,447 $ 11,351
Leasing 449 423 401 431 451
Owner occupied 8,745 8,782 8,769 8,743 8,782
-------- -------- -------- -------- --------
Total
commercial
lending 19,318 19,793 20,128 20,621 20,584
Commercial
real estate:
Construction
and land
development 6,087 6,848 7,265 7,516 7,812
Term 7,279 6,795 6,559 6,196 6,079
-------- -------- -------- -------- --------
Total
commercial
real estate 13,366 13,643 13,824 13,712 13,891
Consumer:
Home equity
credit line 2,114 2,086 2,058 2,005 1,899
1-4 family
residential 3,698 3,781 3,817 3,877 3,892
Construction
and other
consumer
real estate 537 599 666 774 769
Bankcard
and other
revolving
plans 333 344 327 374 360
Other 343 342 358 385 411
-------- -------- -------- -------- --------
Total consumer 7,025 7,152 7,226 7,415 7,331
Foreign loans 74 67 43 43 70
FDIC-supported
assets(1) 2,025 875 836
-------- -------- -------- -------- --------
Total loans $ 41,808 $ 41,530 $ 42,057 $ 41,791 $ 41,876
======== ======== ======== ======== ========
(1) FDIC-supported assets represent assets acquired from the FDIC
subject to loss sharing agreements and include expected
reimbursements from the FDIC of approximately $363 million.
ZIONS BANCORPORATION AND SUBSIDIARIES
Nonperforming Lending Related Assets
(Unaudited)
(In thousands)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
---------- ---------- ---------- ---------- --------
Nonaccrual
loans $1,811,827 $1,628,700 $1,421,279 $946,583 $765,522
Other real
estate
owned 359,187 293,857 226,634 191,792 156,817
---------- ---------- ---------- ---------- --------
Nonperforming
assets,
excluding
FDIC-
supported
assets 2,171,014 1,922,557 1,647,913 1,138,375 922,339
FDIC-
supported
assets(1) 599,272 136,775 106,910 -- --
---------- ---------- ---------- ---------- --------
Total
non-
performing
assets $2,770,286 $2,059,332 $1,754,823 $1,138,375 $922,339
========== ========== ========== ========== ========
Ratio of
nonperforming
assets,
excluding
FDIC-supported
assets, to
net loans
and leases
(2)and other
real estate
owned 5.40% 4.68% 3.96% 2.71% 2.19%
Ratio of
nonperforming
assets to
net loans
and leases(2)
and other
real estate
owned 6.56% 4.91% 4.14% 2.71% 2.19%
Accruing loans
past due 90
days or more,
excluding
FDIC-
supported
assets $ 186,519 $ 178,300 $ 88,035 $ 129,567 $ 97,831
FDIC-
supported
assets past
due 90 days
or more 35,553 18,231 24,365 -- --
Ratio of
accruing
loans past
due 90 day
or more,
excluding
FDIC-supported
assets, to
net loans
and leases 0.47% 0.44% 0.21% 0.31% 0.23%
Ratio of
accruing
loans past
due 90 day
or more to
net loans
and leases 0.53% 0.47% 0.27% 0.31% 0.23%
Accruing
loans past
due 30 - 89
days,
excluding
FDIC-
supported
assets $ 571,399 $ 495,527 $ 740,754 $ 528,964 $420,057
FDIC-
supported
assets past
due 30 - 89
days 74,142 26,144 40,066 -- --
Restructured
loans
included in
nonaccrual
loans $ 107,126 $ 100,590 $ 5,363 $ 16,279 --
Restructured
loans on
accrual 114,159 37,091 15,333 2,086 2,103
(1) FDIC-supported assets represent assets acquired from the FDIC
subject to a loss sharing agreement.
(2) Includes loans held for sale.
Allowance and Reserve for Credit Losses
(Unaudited)
(In thousands)
Three Months Ended
--------------------------------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
---------- ---------- ---------- ---------- --------
Allowance for
Loan Losses
Balance at
beginning
of period $1,248,055 $ 832,878 $ 686,999 $ 609,433 $548,958
Allowance
associated
with
purchased
securitized
loans and
loans sold -- -- -- 30 (804)
Add:
Provision
for losses 565,930 762,654 297,624 285,189 156,606
Deduct:
Loan and
lease
charge-offs (389,134) (353,226) (157,691) (185,317) (100,241)
Recoveries 7,864 5,749 5,946 5,601 4,914
---------- ---------- ---------- ---------- --------
Net loan
and lease
charge-offs (381,270) (347,477) (151,745) (179,716) (95,327)
Reclassifi-
cation
to reserve
for unfunded
lending
commitments -- -- -- (27,937) --
---------- ---------- ---------- -------- --------
Balance at
end of
period $1,432,715 $1,248,055 $ 832,878 $ 686,999 $609,433
========== ========== ========== ========== ========
Ratio of
allowance
for loan
losses to
net loans
and leases,
excluding
FDIC-
supported
assets,
outstanding
at period end 3.61% 3.08% 2.03% 1.65% 1.46%
Ratio of
allowance
for loan
losses to
nonperforming
loans,
excluding
FDIC-
supported
assets, at
period end 79.08% 76.63% 58.60% 72.58% 79.61%
Reserve for
Unfunded
Lending
Commitments
Balance at
beginning
of period $ 60,688 $ 52,761 $ 50,934 $ 23,574 $ 26,838
Reclassifi-
cation
from
allowance
for loan
losses -- -- -- 27,937 --
Provision
charged
(credited)
against
earnings 36,537 7,927 1,827 (577) (3,264)
---------- ---------- ---------- ---------- --------
Balance at
end of
period $ 97,225 $ 60,688 $ 52,761 $ 50,934 $ 23,574
========== ========== ========== ========== ========
Total
Allowance
and Reserve
for Credit
Losses
Allowance for
loan losses $1,432,715 $1,248,055 $ 832,878 $ 686,999 $609,433
Reserve for
unfunded
lending
commitments 97,225 60,688 52,761 50,934 23,574
---------- ---------- ---------- -------- --------
Total
allowance
and reserve
for credit
losses $1,529,940 $1,308,743 $ 885,639 $ 737,933 $633,007
========== ========== ========== ========== ========
Ratio of total
allowance
and reserve
for credit
losses to net
loans and
leases
outstanding,
excluding
FDIC-
supported
assets, at
period end 3.86% 3.23% 2.16% 1.77% 1.52%
ZIONS BANCORPORATION AND SUBSIDIARIES
Nonaccrual Loans By Portfolio Type
(Excluding FDIC-Supported Assets)
(Unaudited)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
(In millions) 2009 2009 2009 2008 2008
-------- ------- -------- ------- --------
Loans held for sale -- $ 18 $ 18 $ 30 --
Commercial lending:
Commercial and
industrial 231 200 204 148 94
Leasing 10 10 9 8 2
Owner occupied 357 282 247 158 114
------- ------- ------- ----- -----
Total commercial
lending 598 492 460 314 210
Commercial real estate:
Construction and
land development 839 826 716 458 464
Term 221 126 76 44 26
------- ------- ------- ----- -----
Total commercial
real estate 1,060 952 792 502 490
Consumer:
Home equity credit
line 8 6 4 4 2
1-4 family
residential 101 113 91 49 34
Construction and
other consumer
real estate 42 45 52 44 28
Bankcard and other
revolving plans 1 1 1 1 --
Other 2 2 3 3 2
------- ------- ------- ----- -----
Total consumer 154 167 151 101 66
------- ------- ------- ----- -----
Total nonaccrual
loans $ 1,812 $ 1,629 $ 1,421 $ 947 $ 766
======= ======= ======= ===== =====
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
Three Months Ended
September 30, 2009
-------------------------------------
Average Amount of Average
(In thousands) balance interest(1) rate
----------- ---------- -------
ASSETS
Money market investments $ 1,861,523 $ 1,195 0.25%
Securities:
Held-to-maturity 914,648 13,797 5.98%
Available-for-sale 3,749,566 26,275 2.78%
Trading account 94,658 842 3.53%
----------- ----------
Total securities 4,758,872 40,914 3.41%
----------- ----------
Loans held for sale 194,596 2,434 4.96%
Loans:
Net loans and leases excluding
FDIC-supported assets (2) 40,246,789 570,652 5.63%
FDIC-supported assets 1,888,642 22,562 4.74%
----------- ----------
Total loans and leases 42,135,431 593,214 5.59%
----------- ----------
Total interest-earning assets 48,950,422 637,757 5.17%
----------
Cash and due from banks 1,187,594
Allowance for loan losses (1,317,078)
Goodwill 1,017,387
Core deposit and other
intangibles 126,614
Other assets 3,635,121
-----------
Total assets $53,600,060
===========
LIABILITIES
Interest-bearing deposits:
Savings and NOW $ 5,162,852 $ 5,262 0.40%
Money market 17,538,319 49,292 1.12%
Time under $100,000 2,954,680 16,612 2.23%
Time $100,000 and over 4,363,017 22,690 2.06%
Foreign 1,901,789 3,478 0.73%
----------- ----------
Total interest-
bearing deposits 31,920,657 97,334 1.21%
----------- ----------
Borrowed funds:
Securities sold, not
yet purchased 45,866 590 5.10%
Federal funds purchased and
security repurchase
agreements 1,708,888 1,207 0.28%
Commercial paper 1,224 3 0.97%
FHLB advances and other
borrowings:
One year or less 46,741 525 4.46%
Over one year 18,854 228 4.80%
Long-term debt 2,231,623 55,865 9.93%
----------- ----------
Total borrowed funds 4,053,196 58,418 5.72%
----------- ----------
Total interest-bearing
liabilities 35,973,853 155,752 1.72%
----------
Noninterest-bearing
deposits 11,428,774
Other liabilities 517,199
-----------
Total liabilities 47,919,826
Shareholders' equity:
Preferred equity 1,514,675
Common equity 4,142,749
-----------
Controlling interest
shareholders' equity 5,657,424
Noncontrolling interests 22,810
-----------
Total shareholders' equity 5,680,234
-----------
Total liabilities
and shareholders' equity $53,600,060
===========
Spread on average interest-
bearing funds 3.45%
Taxable-equivalent net interest
income and net yield on
interest-earning assets $ 482,005 3.91%
==========
Three Months Ended
June 30, 2009
-------------------------------------
Average Amount of Average
balance interest(1) rate
(In thousands) ----------- ---------- -------
ASSETS
Money market investments $ 1,944,332 $ 1,543 0.32%
Securities:
Held-to-maturity 1,491,322 18,284 4.92%
Available-for-sale 3,336,239 29,717 3.57%
Trading account 79,554 823 4.15%
----------- ----------
Total securities 4,907,115 48,824 3.99%
----------- ----------
Loans held for sale 256,253 3,082 4.82%
Loans:
Net loans and leases excluding
FDIC-supported assets (2) 40,991,516 579,070 5.67%
FDIC-supported assets 919,424 10,921 4.76%
----------- ----------
Total loans and leases 41,910,940 589,991 5.65%
----------- ----------
Total interest-earning assets 49,018,640 643,440 5.26%
----------
Cash and due from banks 1,236,641
Allowance for loan losses (876,064)
Goodwill 1,017,382
Core deposit and other
intangibles 125,768
Other assets 3,547,787
-----------
Total assets $54,070,154
===========
LIABILITIES
Interest-bearing deposits:
Savings and NOW $ 4,931,024 $ 5,292 0.43%
Money market 17,787,662 59,657 1.35%
Time under $100,000 2,942,319 19,254 2.62%
Time $100,000 and over 4,628,867 28,475 2.47%
Foreign 1,972,503 4,848 0.99%
----------- ----------
Total interest-
bearing deposits 32,262,375 117,526 1.46%
----------- ----------
Borrowed funds:
Securities sold, not
yet purchased 47,804 637 5.34%
Federal funds purchased and
security repurchase
agreements 2,047,532 1,591 0.31%
Commercial paper 2,589 10 1.55%
FHLB advances and other
borrowings:
One year or less 150,960 1,423 3.78%
Over one year 35,777 476 5.34%
Long-term debt 2,717,284 22,345 3.30%
----------- ----------
Total borrowed funds 5,001,946 26,482 2.12%
----------- ----------
Total interest-bearing
liabilities 37,264,321 144,008 1.55%
----------
Noninterest-bearing
deposits 10,696,423
Other liabilities 480,256
-----------
Total liabilities 48,441,000
Shareholders' equity:
Preferred equity 1,587,752
Common equity 4,016,134
-----------
Controlling interest
shareholders' equity 5,603,886
Noncontrolling interests 25,268
-----------
Total shareholders' equity 5,629,154
-----------
Total liabilities
and shareholders' equity $54,070,154
===========
Spread on average interest-
bearing funds 3.71%
Taxable-equivalent net interest
income and net yield on
interest-earning assets $ 499,432 4.09%
==========
(1) Taxable-equivalent rates used where applicable.
(2) Net of unearned income and fees, net of related costs. Loans
include nonaccrual and restructured loans.
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
Nine Months Ended
September 30, 2009
-------------------------------------
Average Amount of Average
(In thousands) balance interest(1) rate
----------- ---------- -------
ASSETS
Money market investments $ 2,251,822 $ 6,114 0.36%
Securities:
Held-to-maturity 1,394,335 60,627 5.81%
Available-for-sale 3,247,096 80,277 3.31%
Trading account 76,914 2,236 3.89%
----------- ----------
Total securities 4,718,345 143,140 4.06%
----------- ----------
Loans held for sale 231,662 8,272 4.77%
Loans:
Net loans and leases excluding
FDIC-supported assets (2) 40,869,880 1,728,742 5.66%
FDIC-supported assets 1,109,356 40,526 4.88%
----------- ----------
Total loans and leases 41,979,236 1,769,268 5.63%
----------- ----------
Total interest-earning
assets 49,181,065 1,926,794 5.24%
----------
Cash and due from banks 1,262,255
Allowance for loan losses (971,468)
Goodwill 1,227,331
Core deposit and other
intangibles 126,380
Other assets 3,524,476
-----------
Total assets $54,350,039
===========
LIABILITIES
Interest-bearing deposits:
Savings and NOW $ 4,876,646 $ 16,353 0.45%
Money market 17,602,491 177,703 1.35%
Time under $100,000 2,999,739 57,659 2.57%
Time $100,000 and over 4,580,349 84,651 2.47%
Foreign 2,075,197 15,726 1.01%
----------- ----------
Total interest-bearing
deposits 32,134,422 352,092 1.46%
----------- ----------
Borrowed funds:
Securities sold, not
yet purchased 42,425 1,666 5.25%
Federal funds purchased and
security repurchase
agreements 2,027,743 4,648 0.31%
Commercial paper 2,391 27 1.51%
FHLB advances and other
borrowings:
One year or less 374,349 5,665 2.02%
Over one year 60,458 2,507 5.54%
Long-term debt 2,534,627 98,082 5.17%
----------- ----------
Total borrowed funds 5,041,993 112,595 2.99%
----------- ----------
Total interest-bearing
liabilities 37,176,415 464,687 1.67%
----------
Noninterest-bearing
deposits 10,682,344
Other liabilities 543,197
-----------
Total liabilities 48,401,956
Shareholders' equity:
Preferred equity 1,561,776
Common equity 4,361,059
-----------
Controlling interest
shareholders' equity 5,922,835
Noncontrolling
interests 25,248
-----------
Total shareholders'
equity 5,948,083
-----------
Total liabilities
and shareholders'
equity $54,350,039
===========
Spread on average interest-
bearing funds 3.57%
Taxable-equivalent net interest
income and net yield on
interest-earning assets $1,462,107 3.97%
==========
Nine Months Ended
September 30, 2008
-------------------------------------
Average Amount of Average
balance interest(1) rate
(In thousands) ----------- ---------- -------
ASSETS
Money market investments $ 1,765,932 $ 40,608 3.07%
Securities:
Held-to-maturity 1,385,803 69,153 6.67%
Available-for-sale 3,502,132 130,857 4.99%
Trading account 40,942 1,277 4.17%
----------- ----------
Total securities 4,928,877 201,287 5.46%
----------- ----------
Loans held for sale 186,940 7,632 5.45%
Loans:
Net loans and leases excluding
FDIC-supported assets (2) 40,467,491 2,016,914 6.66%
FDIC-supported assets -- --
----------- ----------
Total loans and leases 40,467,491 2,016,914 6.66%
----------- ----------
Total interest-earning
assets 47,349,240 2,266,441 6.39%
----------
Cash and due from banks 1,387,584
Allowance for loan losses (518,840)
Goodwill 2,009,501
Core deposit and other
intangibles 138,711
Other assets 3,132,318
-----------
Total assets $53,498,514
===========
LIABILITIES
Interest-bearing deposits:
Savings and NOW $ 4,472,175 $ 27,530 0.82%
Money market 13,203,878 247,321 2.50%
Time under $100,000 2,589,543 72,339 3.73%
Time $100,000 and over 4,243,922 122,454 3.85%
Foreign 3,314,535 69,726 2.81%
----------- ----------
Total interest-bearing
deposits 27,824,053 539,370 2.59%
----------- ----------
Borrowed funds:
Securities sold, not
yet purchased 32,608 1,140 4.67%
Federal funds purchased and
security repurchase
agreements 2,864,224 49,021 2.29%
Commercial paper 142,771 4,131 3.86%
FHLB advances and other
borrowings:
One year or less 4,980,487 104,215 2.80%
Over one year 128,513 5,521 5.74%
Long-term debt 2,472,355 82,097 4.44%
----------- ----------
Total borrowed funds 10,620,958 246,125 3.10%
----------- ----------
Total interest-bearing
liabilities 38,445,011 785,495 2.73%
----------- ----------
Noninterest-bearing
deposits 9,074,345
Other liabilities 588,846
-----------
Total liabilities 48,108,202
Shareholders' equity:
Preferred equity 254,270
Common equity 5,106,750
-----------
Controlling interest
shareholders' equity 5,361,020
Noncontrolling
interests 29,292
-----------
Total shareholders'
equity 5,390,312
-----------
Total liabilities
and shareholders'
equity $53,498,514
===========
Spread on average interest-
bearing funds 3.66%
Taxable-equivalent net interest
income and net yield on
interest-earning assets $1,480,946 4.18%
==========
(1) Taxable-equivalent rates used where applicable.
(2) Net of unearned income and fees, net of related costs. Loans
include nonaccrual and restructured loans.
ZIONS BANCORPORATION AND SUBSIDIARIES
Capital Ratios
(Unaudited)
Sept. 30, June 30, Sept. 30,
2009 2009 2008
-------- -------- --------
Tangible common equity ratio 5.43% 5.66% 6.05%
Tangible equity ratio 8.39% 8.59% 6.66%
Risk-based capital ratios(1):
Tier 1 common to risk-weighted
assets 6.10% 6.08% 6.58%
Tier 1 risk-based capital 9.74% 9.66% 8.07%
Total risk-based capital 12.91% 12.87% 12.30%
(1) Ratios for September 30, 2009 are estimates.