Zions Bancorporation Reports Earnings Of $1.12 Per Diluted Common Share For Third Quarter 2013
SALT LAKE CITY, Oct. 21, 2013 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) ("Zions" or "the Company") today reported third quarter net earnings applicable to common shareholders of $209.7 million or $1.12 per diluted common share, compared to $55.4 million or $0.30 per diluted share for the second quarter of 2013, and $62.3 million or $0.34 per diluted share for the third quarter of 2012. In the third quarter, the Company redeemed the entire $800 million par amount of its Series C preferred stock that had a carrying value of $926 million, which increased net earnings applicable to common shareholders by $126 million after-tax, or $0.68 per diluted common share.
Third Quarter 2013 Highlights
- The Company completed several debt and equity transactions this quarter that continued the Company's efforts to reduce its cost of capital and debt financing. The redemption of the Series C preferred stock, along with issuances this year of replacement preferred stock, will result in a net reduction in preferred stock dividends of approximately $26 million annually, or $0.14 per share.
- Credit quality showed continued improvement, with gross charge-offs and nonperforming lending-related assets declining 35% and 11%, respectively, compared to the prior quarter. This continued improvement resulted in a third quarter negative provision for loan losses of $6 million.
- Loans and leases held for investment, excluding FDIC-supported loans, increased $142 million compared to the prior quarter to $37.9 billion at September 30, 2013. Average loans and leases, excluding FDIC-supported loans, increased $300 million.
- Net interest income decreased primarily as a result of lower income from FDIC-supported loans.
"We are encouraged with the cumulative progress made in reducing the cost of our capital, and expect that this will contribute to future improvement in our return on equity," said Harris H. Simmons, chairman and chief executive officer. "Net loan growth, although not significantly different from the industry, was disappointing despite an increase in production volume and unfunded lending commitments over the prior quarter, as prepayment activity remained high. Nevertheless, the strength of our funding base continued to improve, with average noninterest-bearing deposits reaching 40% of average total deposits."
Loans
Loans and leases held for investment, excluding FDIC-supported loans, increased $142 million on a net basis from the prior quarter to $37.9 billion at September 30, 2013. The increases were predominantly in moderate duration 1-4 family residential loans (primarily in Texas, Utah, Nevada, and Colorado) and multi-family construction loans (primarily in Texas, California and Nevada). Commercial and industrial loans – a source of strong growth over the past several quarters – were relatively unchanged compared to the prior quarter. Decreases in term commercial real estate, commercial owner occupied, and commercial leasing, partially offset increases in other loan categories. Average loans and leases, excluding FDIC-supported loans, increased $300 million to $37.8 billion during the third quarter of 2013, compared to $37.5 billion during the second quarter of 2013. Unfunded lending commitments at September 30, 2013 increased by approximately $458 million during the third quarter of 2013 to a total of $16.7 billion, compared to a $606 million increase during the second quarter of 2013.
Deposits
Average total deposits for the third quarter of 2013 increased $0.6 billion, or 1%, to $45.6 billion, compared to $45.0 billion for the second quarter of 2013. This increase was driven by noninterest-bearing demand deposits, which increased $0.6 billion to an average of $18.2 billion in the third quarter from $17.6 billion in the second quarter. The ratio of average loans to average deposits was 84% for the third quarter, unchanged from the second quarter.
Debt and Shareholders' Equity
The Company completed the following debt and equity transactions during the quarter, excluding those in its medium-term note program:
1. On August 2, 2013, the Company issued an additional $5.9 million of its Series A Non-Cumulative Perpetual Preferred Stock wherein dividends are payable quarterly at the greater of three-month LIBOR plus 0.52% or 4.0%.
2. On August 13, 2013, the Company issued $195.2 million of its Series J Fixed/Floating Non-Cumulative Perpetual Preferred Stock. Dividends are payable semiannually at 7.20% to September 15, 2023, at which time the interest rate resets to three-month LIBOR plus 4.44%.
Net of commissions and fees, the proceeds from these preferred stock issuances added approximately $196 million to shareholders' equity and Tier 1 capital.
3. On September 12, 2013, the Company issued $87.9 million of fixed/floating rate subordinated notes. Interest is payable quarterly at 6.95% to September 15, 2023, at which time it resets to three-month LIBOR plus 3.89%. Net proceeds were $85.9 million.
4. On September 15, 2013, the Company redeemed all of its outstanding $800 million par amount of 9.5% Series C preferred stock at 100% of the $25 per depositary share redemption amount. The weighted average dividend rate on all of the preferred stock issued in 2013 to fund this redemption was 6.23%. The redemption reduced preferred stock by its carrying value of $926 million, with the difference from the par amount, or $126 million, relating to the beneficial conversion feature. This beneficial conversion feature had been transferred over several quarters from common stock to preferred stock as holders of convertible subordinated debt exercised rights to convert to the Series C preferred stock. The total beneficial conversion feature of $203 million was included in common stock when the subordinated debt was modified in 2009 to convertible subordinated debt. The $126 million portion of the total redemption was recorded as a preferred stock redemption that increased net earnings applicable to common shareholders in the third quarter.
The estimated common equity Tier 1 capital ratio was 10.43% at September 30, 2013, compared to 10.03% at June 30, 2013.
Net Interest Income
Net interest income decreased to $416 million for the third quarter of 2013, compared to $431 million for the second quarter of 2013. The net interest margin decreased to 3.22% in the third quarter of 2013, compared to 3.44% in the second quarter of 2013. Net interest income was primarily impacted this quarter by lower income from FDIC-supported loans, which accounted for nearly 95% of the sequential quarterly decline. However, other factors included loan rates resetting at lower levels and lower yields on available-for-sale securities. Interest income from FDIC-supported loans is decreasing as the portfolio is liquidated.
Noninterest Income
Noninterest income for the third quarter of 2013 was $122 million, compared to $125 million for the second quarter of 2013. Loan sales and servicing income decreased primarily due to a lower volume of mortgage refinancing.
Other-than-temporary impairment ("OTTI") on collateralized debt obligation ("CDO") securities increased this quarter compared to the previous quarter.
CDO Investment Securities
During the third quarter of 2013, the Company recognized credit-related OTTI on CDOs of $9 million, compared to $4 million during the second quarter of 2013. The majority of the third quarter OTTI is attributable to the Company further increasing its assumed probabilities of default ("PDs") for bank holding company issuers of trust preferred securities that are still deferring and nearing the end of the allowed five-year deferral period.
The following table provides fair value and other information on the CDOs, stratified into performing tranches without credit impairment and nonperforming tranches at September 30, 2013:
| September 30, 2013 |
|||||||||||||||||||||
| (Amounts in millions) |
No. of tranches |
Par |
Amortized cost |
Carrying value |
Net |
Weighted |
% of carrying value to par |
Change |
|||||||||||||
| September 30, |
June 30, |
||||||||||||||||||||
| Performing CDOs |
|||||||||||||||||||||
| Predominantly bank CDOs |
25 |
$ |
745 |
$ |
670 |
$ |
532 |
$ |
(138) |
5.8% |
71% |
71% |
—% |
||||||||
| Insurance CDOs |
22 |
437 |
434 |
327 |
(107) |
8.0% |
75% |
75% |
—% |
||||||||||||
| Other CDOs |
4 |
44 |
34 |
33 |
(1) |
10.5% |
75% |
73% |
2% |
||||||||||||
| Total performing CDOs |
51 |
1,226 |
1,138 |
892 |
(246) |
6.8% |
73% |
73% |
—% |
||||||||||||
| Nonperforming CDOs 3 |
|||||||||||||||||||||
| CDOs credit impaired prior to last 12 months |
13 |
233 |
172 |
98 |
(74) |
10.1% |
42% |
40% |
2% |
||||||||||||
| CDOs credit impaired during last 12 months |
46 |
891 |
519 |
242 |
(277) |
9.6% |
27% |
29% |
(2)% |
||||||||||||
| Total nonperforming CDOs |
59 |
1,124 |
691 |
340 |
(351) |
9.7% |
30% |
31% |
(1)% |
||||||||||||
| Total CDOs |
110 |
$ |
2,350 |
$ |
1,829 |
$ |
1,232 |
$ |
(597) |
8.2% |
52% |
53% |
(1)% |
||||||||
| 1 Amounts presented are pretax. |
|
| 2 Margin over related LIBOR index. |
|
| 3 Defined as either deferring current interest ("PIKing") or OTTI; the majority are predominantly bank CDOs. |
|
The net unrealized pretax losses in accumulated other comprehensive income ("AOCI") were relatively unchanged from the previous quarter.
The following table shows the changes in fair value and other information on the CDOs from September 30, 2012 to September 30, 2013:
| Change from September 30, 2012 to September 30, 2013 |
||||||||||||||||||||||||||||
| Decrease |
Weighted |
|||||||||||||||||||||||||||
| (Amounts in millions) |
No. of tranches |
Par amount |
Amortized cost |
Carrying value |
% of carrying value to par |
|||||||||||||||||||||||
| Performing CDOs |
||||||||||||||||||||||||||||
| Predominantly bank CDOs |
(5) |
$ |
(142) |
$ |
(122) |
$ |
(105) |
$ |
17 |
0.5% |
(1)% |
|||||||||||||||||
| Insurance CDOs |
1 |
(13) |
(10) |
5 |
15 |
(0.5)% |
3% |
|||||||||||||||||||||
| Other CDOs |
(3) |
(35) |
(34) |
(29) |
5 |
3.2% |
(3)% |
|||||||||||||||||||||
| Total performing CDOs |
(7) |
(190) |
(166) |
(129) |
37 |
0.3% |
1% |
|||||||||||||||||||||
| Nonperforming CDOs |
||||||||||||||||||||||||||||
| Deferring interest, but no credit impairment |
(3) |
(72) |
(72) |
(19) |
53 |
(13.7)% |
(26)% |
|||||||||||||||||||||
| Credit impairment prior to last 12 months |
(19) |
(360) |
(265) |
(30) |
235 |
(3.4)% |
20% |
|||||||||||||||||||||
| Credit impairment during last 12 months |
23 |
447 |
244 |
179 |
(65) |
(5.3)% |
13% |
|||||||||||||||||||||
| Total nonperforming CDOs |
1 |
15 |
(93) |
130 |
223 |
(4.4)% |
11% |
|||||||||||||||||||||
| Total CDOs |
(6) |
$ |
(175) |
$ |
(259) |
$ |
1 |
$ |
260 |
(1.6)% |
3% |
|||||||||||||||||
Noninterest Expense
Noninterest expense for the third quarter of 2013 was $371 million compared to $452 million for the second quarter of 2013. The decrease this quarter was due primarily to (1) the debt extinguishment cost of $40 million incurred in the second quarter, (2) the provision for unfunded lending commitments of $(19.9) million, or an increase to net income of $0.07 per share, compared to $3.6 million in the previous quarter, and (3) the amortization of the FDIC indemnification asset, included in other noninterest expense, of $13 million in the third quarter, compared to $22 million in the second quarter. The indemnification asset is being amortized due to the expiration of most FDIC indemnification agreements in the third quarter of 2014. The overall decrease in the provision for unfunded lending commitments resulted primarily from refinements in the process of estimating the rate at which such commitments are likely to convert into funded balances, and from ongoing improvements in credit quality; these factors were partially offset by a moderate increase in unfunded lending commitments.
Asset Quality
Gross loan and lease charge-offs decreased 35% to $23 million in the third quarter of 2013, compared to $35 million in the second quarter of 2013; gross charge-offs declined 61% from $59 million in the third quarter of 2012. Due to a smaller recovery on loans previously charged off, net loan and lease charge-offs increased $3 million to $9 million in the third quarter of 2013, compared to $6 million in the second quarter of 2013.
Nonperforming lending-related assets declined 11% to $538 million at September 30, 2013 from $602 million at June 30, 2013. Nonaccrual loans declined 9% to $472 million at September 30, 2013 from $521 million at June 30, 2013. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 1.40% at September 30, 2013, compared to 1.57% at June 30, 2013.
Classified loans, excluding FDIC-supported loans, decreased approximately 13% to $1.4 billion at September 30, 2013, compared to $1.6 billion at June 30, 2013. Approximately 66% of the decline was the result of refinements in the Company's risk grading methodology for certain smaller balance loans. Of the classified loans, 84% were current as to principal and interest for both the third and second quarters of 2013.
The negative provision for loan losses was $6 million for the third quarter of 2013, compared to a negative provision of $22 million for the second quarter of 2013. The negative provision continues to result from the improvement in credit quality. The allowance for credit losses was $882 million, or 2.30% of loans and leases at September 30, 2013, compared to $918 million, or 2.40% of loans and leases at June 30, 2013.
Conference Call
Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 21, 2013). Media representatives, analysts and the public are invited to listen to this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 68098093, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. The webcast of the conference call will also be archived and available for 30 days.
About Zions Bancorporation
Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select Western markets. Zions operates its banking businesses under local management teams and community identities through approximately 475 offices in 10 Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services, and received 13 "Excellence" awards by Greenwich Associates for the 2012 survey. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.
Forward-Looking Information
Statements in this press release that are based on other than historical data or that express the Company's expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission ("SEC") and available at the SEC's Internet site (http://www.sec.gov).
Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
| FINANCIAL HIGHLIGHTS |
|||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||
| (In thousands, except share, per share, and ratio data) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
| PER COMMON SHARE |
|||||||||||||||||||
| Dividends |
$ |
0.04 |
$ |
0.04 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
|||||||||
| Book value per common share 1 |
28.87 |
27.82 |
27.43 |
26.73 |
26.05 |
||||||||||||||
| Tangible common equity per common share 1 |
23.16 |
22.09 |
21.67 |
20.95 |
20.24 |
||||||||||||||
| SELECTED RATIOS |
|||||||||||||||||||
| Return on average assets |
0.80% |
0.61% |
0.83% |
0.43% |
0.82% |
||||||||||||||
| Return on average common equity |
16.03% |
4.35% |
7.18% |
2.91% |
5.21% |
||||||||||||||
| Tangible return on average tangible common equity |
20.34% |
5.73% |
9.37% |
4.07% |
7.02% |
||||||||||||||
| Net interest margin |
3.22% |
3.44% |
3.44% |
3.47% |
3.58% |
||||||||||||||
| Capital Ratios |
|||||||||||||||||||
| Tangible common equity ratio 1 |
7.90% |
7.57% |
7.53% |
7.09% |
7.17% |
||||||||||||||
| Tangible equity ratio 1 |
9.75% |
10.78% |
9.97% |
9.15% |
9.32% |
||||||||||||||
| Average equity to average assets |
12.39% |
12.11% |
11.54% |
11.03% |
12.22% |
||||||||||||||
| Risk-Based Capital Ratios 1,2 |
|||||||||||||||||||
| Common equity Tier 1 capital |
10.43% |
10.03% |
10.07% |
9.80% |
9.86% |
||||||||||||||
| Tier 1 leverage |
10.63% |
11.75% |
11.55% |
10.96% |
11.05% |
||||||||||||||
| Tier 1 risk-based capital |
13.04% |
14.30% |
14.08% |
13.38% |
13.49% |
||||||||||||||
| Total risk-based capital |
14.77% |
15.94% |
15.75% |
15.05% |
15.25% |
||||||||||||||
| Taxable-equivalent net interest income |
$ |
419,236 |
$ |
434,579 |
$ |
422,252 |
$ |
434,252 |
$ |
442,595 |
|||||||||
| Weighted average common and common-equivalent shares outstanding |
184,742,414 |
184,061,623 |
183,655,129 |
183,456,109 |
183,382,650 |
||||||||||||||
| Common shares outstanding 1 |
184,600,005 |
184,436,656 |
184,246,471 |
184,199,198 |
184,156,402 |
||||||||||||||
| 1 At period end. |
|
| 2 Ratios for September 30, 2013 are estimates. |
|
| CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||
| (In thousands, except share amounts) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||||||
| ASSETS |
|||||||||||||||||||
| Cash and due from banks |
$ |
1,365,082 |
$ |
1,183,097 |
$ |
928,817 |
$ |
1,841,907 |
$ |
1,060,918 |
|||||||||
| Money market investments: |
|||||||||||||||||||
| Interest-bearing deposits |
8,180,639 |
8,180,010 |
5,785,268 |
5,978,978 |
5,519,463 |
||||||||||||||
| Federal funds sold and security resell agreements |
209,070 |
221,799 |
2,340,177 |
2,775,354 |
1,960,294 |
||||||||||||||
| Investment securities: |
|||||||||||||||||||
| Held-to-maturity, at adjusted cost (approximate fair value $727,908, $734,292, $684,668, $674,741, and $655,768) |
777,849 |
783,371 |
736,158 |
756,909 |
740,738 |
||||||||||||||
| Available-for-sale, at fair value |
3,333,889 |
3,193,395 |
3,287,844 |
3,091,310 |
3,127,192 |
||||||||||||||
| Trading account, at fair value |
38,278 |
26,385 |
28,301 |
28,290 |
13,963 |
||||||||||||||
| 4,150,016 |
4,003,151 |
4,052,303 |
3,876,509 |
3,881,893 |
|||||||||||||||
| Loans held for sale |
114,810 |
164,619 |
161,559 |
251,651 |
220,240 |
||||||||||||||
| Loans, net of unearned income and fees: |
|||||||||||||||||||
| Loans and leases |
37,897,869 |
37,756,010 |
37,284,694 |
37,137,006 |
36,674,288 |
||||||||||||||
| FDIC-supported loans |
374,861 |
431,935 |
477,725 |
528,241 |
588,566 |
||||||||||||||
| 38,272,730 |
38,187,945 |
37,762,419 |
37,665,247 |
37,262,854 |
|||||||||||||||
| Less allowance for loan losses |
797,523 |
813,912 |
841,781 |
896,087 |
927,068 |
||||||||||||||
| Loans, net of allowance |
37,475,207 |
37,374,033 |
36,920,638 |
36,769,160 |
36,335,786 |
||||||||||||||
| Other noninterest-bearing investments |
851,349 |
852,939 |
855,388 |
855,462 |
874,903 |
||||||||||||||
| Premises and equipment, net |
720,365 |
717,299 |
706,746 |
708,882 |
709,188 |
||||||||||||||
| Goodwill |
1,014,129 |
1,014,129 |
1,014,129 |
1,014,129 |
1,015,129 |
||||||||||||||
| Core deposit and other intangibles |
39,667 |
43,239 |
47,000 |
50,818 |
55,034 |
||||||||||||||
| Other real estate owned |
66,381 |
80,789 |
89,904 |
98,151 |
118,190 |
||||||||||||||
| Other assets |
1,001,597 |
1,069,436 |
1,208,635 |
1,290,917 |
1,335,963 |
||||||||||||||
| $ |
55,188,312 |
$ |
54,904,540 |
$ |
54,110,564 |
$ |
55,511,918 |
$ |
53,087,001 |
||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
| Deposits: |
|||||||||||||||||||
| Noninterest-bearing demand |
$ |
18,566,137 |
$ |
17,803,950 |
$ |
17,311,150 |
$ |
18,469,458 |
$ |
17,295,911 |
|||||||||
| Interest-bearing: |
|||||||||||||||||||
| Savings and money market |
22,806,132 |
22,887,404 |
22,760,397 |
22,896,624 |
21,970,062 |
||||||||||||||
| Time |
2,689,688 |
2,810,431 |
2,889,903 |
2,962,931 |
3,107,815 |
||||||||||||||
| Foreign |
1,607,409 |
1,514,270 |
1,528,745 |
1,804,060 |
1,398,749 |
||||||||||||||
| 45,669,366 |
45,016,055 |
44,490,195 |
46,133,073 |
43,772,537 |
|||||||||||||||
| Securities sold, not yet purchased |
21,183 |
15,799 |
1,662 |
26,735 |
21,708 |
||||||||||||||
| Federal funds purchased and security repurchase agreements |
252,591 |
240,816 |
325,107 |
320,478 |
451,214 |
||||||||||||||
| Other short-term borrowings |
— |
— |
— |
5,409 |
6,608 |
||||||||||||||
| Long-term debt |
2,304,301 |
2,173,176 |
2,352,569 |
2,337,113 |
2,326,659 |
||||||||||||||
| Reserve for unfunded lending commitments |
84,147 |
104,082 |
100,455 |
106,809 |
105,850 |
||||||||||||||
| Other liabilities |
523,915 |
494,280 |
489,923 |
533,660 |
484,170 |
||||||||||||||
| Total liabilities |
48,855,503 |
48,044,208 |
47,759,911 |
49,463,277 |
47,168,746 |
||||||||||||||
| Shareholders' equity: |
|||||||||||||||||||
| Preferred stock, without par value, authorized 4,400,000 shares |
1,003,970 |
1,728,659 |
1,301,289 |
1,128,302 |
1,123,377 |
||||||||||||||
| Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 184,600,005, 184,436,656, 184,246,471, 184,199,198, and 184,156,402 shares |
4,172,887 |
4,167,828 |
4,170,888 |
4,166,109 |
4,162,001 |
||||||||||||||
| Retained earnings |
1,540,455 |
1,338,401 |
1,290,131 |
1,203,815 |
1,170,477 |
||||||||||||||
| Accumulated other comprehensive income (loss) |
(384,503) |
(374,556) |
(406,903) |
(446,157) |
(534,738) |
||||||||||||||
| Controlling interest shareholders' equity |
6,332,809 |
6,860,332 |
6,355,405 |
6,052,069 |
5,921,117 |
||||||||||||||
| Noncontrolling interests |
— |
— |
(4,752) |
(3,428) |
(2,862) |
||||||||||||||
| Total shareholders' equity |
6,332,809 |
6,860,332 |
6,350,653 |
6,048,641 |
5,918,255 |
||||||||||||||
| $ |
55,188,312 |
$ |
54,904,540 |
$ |
54,110,564 |
$ |
55,511,918 |
$ |
53,087,001 |
||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||
| (In thousands, except per share amounts) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
| Interest income: |
|||||||||||||||||||
| Interest and fees on loans |
$ |
442,366 |
$ |
460,308 |
$ |
453,433 |
$ |
462,002 |
$ |
473,162 |
|||||||||
| Interest on money market investments |
6,175 |
5,764 |
5,439 |
6,004 |
5,349 |
||||||||||||||
| Interest on securities: |
|||||||||||||||||||
| Held-to-maturity |
7,739 |
7,846 |
7,974 |
8,130 |
8,337 |
||||||||||||||
| Available-for-sale |
16,917 |
19,028 |
17,712 |
21,971 |
22,042 |
||||||||||||||
| Trading account |
210 |
287 |
190 |
150 |
110 |
||||||||||||||
| Total interest income |
473,407 |
493,233 |
484,748 |
498,257 |
509,000 |
||||||||||||||
| Interest expense: |
|||||||||||||||||||
| Interest on deposits |
14,506 |
15,143 |
15,642 |
16,861 |
19,049 |
||||||||||||||
| Interest on short-term borrowings |
71 |
78 |
92 |
178 |
193 |
||||||||||||||
| Interest on long-term debt |
43,309 |
47,355 |
50,899 |
51,261 |
51,597 |
||||||||||||||
| Total interest expense |
57,886 |
62,576 |
66,633 |
68,300 |
70,839 |
||||||||||||||
| Net interest income |
415,521 |
430,657 |
418,115 |
429,957 |
438,161 |
||||||||||||||
| Provision for loan losses |
(5,573) |
(21,990) |
(29,035) |
(10,401) |
(1,889) |
||||||||||||||
| Net interest income after provision for loan losses |
421,094 |
452,647 |
447,150 |
440,358 |
440,050 |
||||||||||||||
| Noninterest income: |
|||||||||||||||||||
| Service charges and fees on deposit accounts |
44,701 |
44,329 |
43,580 |
44,492 |
44,951 |
||||||||||||||
| Other service charges, commissions and fees |
45,977 |
45,888 |
42,731 |
46,497 |
44,679 |
||||||||||||||
| Trust and wealth management income |
7,120 |
7,732 |
6,994 |
7,450 |
6,521 |
||||||||||||||
| Capital markets and foreign exchange |
7,309 |
6,740 |
7,486 |
7,708 |
6,026 |
||||||||||||||
| Dividends and other investment income |
12,101 |
11,339 |
12,724 |
13,117 |
11,686 |
||||||||||||||
| Loan sales and servicing income |
8,464 |
10,723 |
10,951 |
10,595 |
10,695 |
||||||||||||||
| Fair value and nonhedge derivative loss |
(4,403) |
(2,957) |
(5,445) |
(4,778) |
(5,820) |
||||||||||||||
| Equity securities gains (losses), net |
3,165 |
2,209 |
2,832 |
(682) |
2,683 |
||||||||||||||
| Fixed income securities gains (losses), net |
1,580 |
(1,153) |
3,299 |
10,259 |
3,046 |
||||||||||||||
| Impairment losses on investment securities: |
|||||||||||||||||||
| Impairment losses on investment securities |
(10,016) |
(4,910) |
(31,493) |
(120,082) |
(3,876) |
||||||||||||||
| Noncredit-related losses on securities not expected to be sold |
949 |
693 |
21,376 |
36,274 |
1,140 |
||||||||||||||
| Net impairment losses on investment securities |
(9,067) |
(4,217) |
(10,117) |
(83,808) |
(2,736) |
||||||||||||||
| Other |
5,243 |
4,515 |
6,184 |
3,309 |
3,495 |
||||||||||||||
| Total noninterest income |
122,190 |
125,148 |
121,219 |
54,159 |
125,226 |
||||||||||||||
| Noninterest expense: |
|||||||||||||||||||
| Salaries and employee benefits |
229,185 |
227,328 |
229,789 |
220,039 |
220,223 |
||||||||||||||
| Occupancy, net |
28,230 |
27,951 |
27,389 |
28,226 |
28,601 |
||||||||||||||
| Equipment, software and furniture |
26,560 |
26,545 |
26,074 |
27,774 |
27,122 |
||||||||||||||
| Other real estate expense |
(831) |
1,590 |
1,977 |
5,266 |
207 |
||||||||||||||
| Credit related expense |
7,265 |
9,397 |
10,482 |
11,302 |
13,316 |
||||||||||||||
| Provision for unfunded lending commitments |
(19,935) |
3,627 |
(6,354) |
959 |
2,264 |
||||||||||||||
| Professional and legal services |
16,462 |
17,149 |
10,471 |
15,717 |
12,749 |
||||||||||||||
| Advertising |
6,091 |
5,807 |
5,893 |
5,969 |
7,326 |
||||||||||||||
| FDIC premiums |
9,395 |
10,124 |
9,711 |
10,760 |
11,278 |
||||||||||||||
| Amortization of core deposit and other intangibles |
3,570 |
3,762 |
3,819 |
4,216 |
4,241 |
||||||||||||||
| Debt extinguishment cost |
— |
40,282 |
— |
— |
— |
||||||||||||||
| Other |
64,671 |
78,116 |
78,097 |
76,786 |
67,648 |
||||||||||||||
| Total noninterest expense |
370,663 |
451,678 |
397,348 |
407,014 |
394,975 |
||||||||||||||
| Income before income taxes |
172,621 |
126,117 |
171,021 |
87,503 |
170,301 |
||||||||||||||
| Income taxes |
61,107 |
43,091 |
60,634 |
29,817 |
60,704 |
||||||||||||||
| Net income |
111,514 |
83,026 |
110,387 |
57,686 |
109,597 |
||||||||||||||
| Net loss applicable to noncontrolling interests |
— |
— |
(336) |
(566) |
(254) |
||||||||||||||
| Net income applicable to controlling interest |
111,514 |
83,026 |
110,723 |
58,252 |
109,851 |
||||||||||||||
| Preferred stock dividends |
(27,507) |
(27,641) |
(22,399) |
(22,647) |
(47,529) |
||||||||||||||
| Preferred stock redemption |
125,700 |
— |
— |
— |
— |
||||||||||||||
| Net earnings applicable to common shareholders |
$ |
209,707 |
$ |
55,385 |
$ |
88,324 |
$ |
35,605 |
$ |
62,322 |
|||||||||
| Weighted average common shares outstanding during the period: |
|||||||||||||||||||
| Basic shares |
184,112 |
183,647 |
183.396 |
183,300 |
183,237 |
||||||||||||||
| Diluted shares |
184,742 |
184,062 |
183,655 |
183,456 |
183,383 |
||||||||||||||
| Net earnings per common share: |
|||||||||||||||||||
| Basic |
$ |
1.13 |
$ |
0.30 |
$ |
0.48 |
$ |
0.19 |
$ |
0.34 |
|||||||||
| Diluted |
1.12 |
0.30 |
0.48 |
0.19 |
0.34 |
||||||||||||||
| Loan Balances by Portfolio Type (Unaudited) |
|||||||||||||||||||||||||||||
| (In millions) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||||||||
| Commercial: |
|||||||||||||||||||||||||||||
| Commercial and industrial |
$ |
11,904 |
$ |
11,899 |
$ |
11,504 |
$ |
11,257 |
$ |
10,840 |
|||||||||||||||||||
| Leasing |
375 |
388 |
390 |
423 |
405 |
||||||||||||||||||||||||
| Owner occupied |
7,379 |
7,394 |
7,501 |
7,589 |
7,669 |
||||||||||||||||||||||||
| Municipal |
449 |
454 |
484 |
494 |
469 |
||||||||||||||||||||||||
| Total commercial |
20,107 |
20,135 |
19,879 |
19,763 |
19,383 |
||||||||||||||||||||||||
| Commercial real estate: |
|||||||||||||||||||||||||||||
| Construction and land development |
2,240 |
2,191 |
2,039 |
1,939 |
1,956 |
||||||||||||||||||||||||
| Term |
7,929 |
7,971 |
8,012 |
8,063 |
8,140 |
||||||||||||||||||||||||
| Total commercial real estate |
10,169 |
10,162 |
10,051 |
10,002 |
10,096 |
||||||||||||||||||||||||
| Consumer: |
|||||||||||||||||||||||||||||
| Home equity credit line |
2,124 |
2,124 |
2,125 |
2,178 |
2,175 |
||||||||||||||||||||||||
| 1-4 family residential |
4,637 |
4,486 |
4,408 |
4,350 |
4,181 |
||||||||||||||||||||||||
| Construction and other consumer real estate |
321 |
322 |
320 |
321 |
320 |
||||||||||||||||||||||||
| Bankcard and other revolving plans |
332 |
315 |
293 |
307 |
295 |
||||||||||||||||||||||||
| Other |
208 |
212 |
208 |
216 |
224 |
||||||||||||||||||||||||
| Total consumer |
7,622 |
7,459 |
7,354 |
7,372 |
7,195 |
||||||||||||||||||||||||
| FDIC-supported loans 1 |
375 |
432 |
478 |
528 |
589 |
||||||||||||||||||||||||
| Total loans |
$ |
38,273 |
$ |
38,188 |
$ |
37,762 |
$ |
37,665 |
$ |
37,263 |
|||||||||||||||||||
| 1 FDIC-supported loans represent loans acquired from the FDIC subject to loss sharing agreements. |
|||||||||||||||||||||||||||||
| FDIC-Supported Loans – Effect of Higher Accretion |
|||||||||||||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| (In thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||||||||
| Balance sheet: |
|||||||||||||||||||||||||||||
| Change in assets from reestimation of cash flows – increase (decrease): |
|||||||||||||||||||||||||||||
| FDIC-supported loans |
$ |
15,018 |
$ |
28,424 |
$ |
18,977 |
$ |
12,970 |
$ |
17,594 |
|||||||||||||||||||
| FDIC indemnification asset (included in other assets) |
(12,965) |
(21,845) |
(20,288) |
(10,610) |
(14,401) |
||||||||||||||||||||||||
| Balance at end of period: |
|||||||||||||||||||||||||||||
| FDIC-supported loans |
374,861 |
431,935 |
477,725 |
528,241 |
588,566 |
||||||||||||||||||||||||
| FDIC indemnification asset (included in other assets) |
41,771 |
51,297 |
71,100 |
90,074 |
100,004 |
||||||||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| (In thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||||||||
| Statement of income: |
|||||||||||||||||||||||||||||
| Interest income: |
|||||||||||||||||||||||||||||
| Interest and fees on loans |
$ |
15,018 |
$ |
28,424 |
$ |
18,977 |
$ |
12,970 |
$ |
17,594 |
|||||||||||||||||||
| Noninterest expense: |
|||||||||||||||||||||||||||||
| Other noninterest expense |
12,965 |
21,845 |
20,288 |
10,610 |
14,401 |
||||||||||||||||||||||||
| Net increase (decrease) in pretax income |
$ |
2,053 |
$ |
6,579 |
$ |
(1,311) |
$ |
2,360 |
$ |
3,193 |
|||||||||||||||||||
| Nonperforming Lending-Related Assets (Unaudited) |
|||||||||||||||||||
| (Amounts in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
| Nonaccrual loans |
$ |
466,795 |
$ |
515,708 |
$ |
589,221 |
$ |
630,810 |
$ |
699,952 |
|||||||||
| Other real estate owned |
58,295 |
70,031 |
80,701 |
90,269 |
106,356 |
||||||||||||||
| Nonperforming lending-related assets, excluding FDIC-supported assets |
525,090 |
585,739 |
669,922 |
721,079 |
806,308 |
||||||||||||||
| FDIC-supported nonaccrual loans |
4,744 |
5,256 |
4,927 |
17,343 |
19,454 |
||||||||||||||
| FDIC-supported other real estate owned |
8,086 |
10,758 |
9,203 |
7,882 |
11,834 |
||||||||||||||
| FDIC-supported nonperforming assets |
12,830 |
16,014 |
14,130 |
25,225 |
31,288 |
||||||||||||||
| Total nonperforming lending-related assets |
$ |
537,920 |
$ |
601,753 |
$ |
684,052 |
$ |
746,304 |
$ |
837,596 |
|||||||||
| Ratio of nonperforming lending-related assets to loans 1 and leases and other real estate owned |
1.40% |
1.57% |
1.80% |
1.96% |
2.23% |
||||||||||||||
| Accruing loans past due 90 days or more, excluding FDIC-supported loans |
$ |
9,398 |
$ |
10,685 |
$ |
12,708 |
$ |
9,730 |
$ |
14,508 |
|||||||||
| Accruing FDIC-supported loans past due 90 days or more |
22,450 |
33,410 |
47,208 |
52,033 |
60,913 |
||||||||||||||
| Ratio of accruing loans past due 90 days or more to loans 1 and leases |
0.08% |
0.11% |
0.16% |
0.16% |
0.20% |
||||||||||||||
| Nonaccrual loans and accruing loans past due 90 days or more |
$ |
503,387 |
$ |
565,059 |
$ |
654,064 |
$ |
709,916 |
$ |
794,827 |
|||||||||
| Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans 1 and leases |
1.31% |
1.47% |
1.72% |
1.87% |
2.12% |
||||||||||||||
| Accruing loans past due 30 - 89 days, excluding FDIC-supported loans |
$ |
85,128 |
$ |
103,075 |
$ |
155,896 |
$ |
185,422 |
$ |
143,539 |
|||||||||
| Accruing FDIC-supported loans past due 30 - 89 days |
10,983 |
6,522 |
11,571 |
11,924 |
15,462 |
||||||||||||||
| Restructured loans included in nonaccrual loans |
166,573 |
162,496 |
193,975 |
215,476 |
207,088 |
||||||||||||||
| Restructured loans on accrual |
384,793 |
385,428 |
416,181 |
407,026 |
421,055 |
||||||||||||||
| Classified loans, excluding FDIC-supported loans |
1,432,806 |
1,639,206 |
1,737,178 |
1,767,460 |
1,810,099 |
||||||||||||||
| 1 Includes loans held for sale. |
|
| Allowance for Credit Losses (Unaudited) |
|||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||
| (Amounts in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
| Allowance for Loan Losses |
|||||||||||||||||||
| Balance at beginning of period |
$ |
813,912 |
$ |
841,781 |
$ |
896,087 |
$ |
927,068 |
$ |
973,443 |
|||||||||
| Add: |
|||||||||||||||||||
| Provision for losses |
(5,573) |
(21,990) |
(29,035) |
(10,401) |
(1,889) |
||||||||||||||
| Adjustment for FDIC-supported loans |
(2,118) |
(209) |
(7,429) |
(1,721) |
(5,908) |
||||||||||||||
| Deduct: |
|||||||||||||||||||
| Gross loan and lease charge-offs |
(22,826) |
(35,099) |
(35,467) |
(54,709) |
(58,781) |
||||||||||||||
| Recoveries |
14,128 |
29,429 |
17,625 |
35,850 |
20,203 |
||||||||||||||
| Net loan and lease charge-offs |
(8,698) |
(5,670) |
(17,842) |
(18,859) |
(38,578) |
||||||||||||||
| Balance at end of period |
$ |
797,523 |
$ |
813,912 |
$ |
841,781 |
$ |
896,087 |
$ |
927,068 |
|||||||||
| Ratio of allowance for loan losses to loans and leases, at period end |
2.08% |
2.13% |
2.23% |
2.38% |
2.49% |
||||||||||||||
| Ratio of allowance for loan losses to nonperforming loans, at period end |
169.13% |
156.23% |
141.68% |
138.25% |
128.87% |
||||||||||||||
| Annualized ratio of net loan and lease charge-offs to average loans |
0.09% |
0.06% |
0.19% |
0.20% |
0.41% |
||||||||||||||
| Reserve for Unfunded Lending Commitments |
|||||||||||||||||||
| Balance at beginning of period |
$ |
104,082 |
$ |
100,455 |
$ |
106,809 |
$ |
105,850 |
$ |
103,586 |
|||||||||
| Provision charged (credited) to earnings |
(19,935) |
3,627 |
(6,354) |
959 |
2,264 |
||||||||||||||
| Balance at end of period |
$ |
84,147 |
$ |
104,082 |
$ |
100,455 |
$ |
106,809 |
$ |
105,850 |
|||||||||
| Total Allowance for Credit Losses |
|||||||||||||||||||
| Allowance for loan losses |
$ |
797,523 |
$ |
813,912 |
$ |
841,781 |
$ |
896,087 |
$ |
927,068 |
|||||||||
| Reserve for unfunded lending commitments |
84,147 |
104,082 |
100,455 |
106,809 |
105,850 |
||||||||||||||
| Total allowance for credit losses |
$ |
881,670 |
$ |
917,994 |
$ |
942,236 |
$ |
1,002,896 |
$ |
1,032,918 |
|||||||||
| Ratio of total allowance for credit losses to loans and leases outstanding, at period end |
2.30% |
2.40% |
2.50% |
2.66% |
2.77% |
||||||||||||||
| Nonaccrual Loans by Portfolio Type |
|||||||||||||||||||||||||||||
| (In millions) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||||||||
| Commercial: |
|||||||||||||||||||||||||||||
| Commercial and industrial |
$ |
100 |
$ |
94 |
$ |
100 |
$ |
91 |
$ |
103 |
|||||||||||||||||||
| Leasing |
1 |
1 |
1 |
1 |
1 |
||||||||||||||||||||||||
| Owner occupied |
158 |
186 |
195 |
206 |
223 |
||||||||||||||||||||||||
| Municipal |
10 |
9 |
9 |
9 |
6 |
||||||||||||||||||||||||
| Total commercial |
269 |
290 |
305 |
307 |
333 |
||||||||||||||||||||||||
| Commercial real estate: |
|||||||||||||||||||||||||||||
| Construction and land development |
65 |
70 |
93 |
108 |
125 |
||||||||||||||||||||||||
| Term |
61 |
71 |
102 |
125 |
155 |
||||||||||||||||||||||||
| Total commercial real estate |
126 |
141 |
195 |
233 |
280 |
||||||||||||||||||||||||
| Consumer: |
|||||||||||||||||||||||||||||
| Home equity credit line |
8 |
11 |
12 |
14 |
12 |
||||||||||||||||||||||||
| 1-4 family residential |
58 |
66 |
71 |
70 |
66 |
||||||||||||||||||||||||
| Construction and other consumer real estate |
4 |
5 |
4 |
5 |
6 |
||||||||||||||||||||||||
| Bankcard and other revolving plans |
1 |
2 |
1 |
1 |
1 |
||||||||||||||||||||||||
| Other |
1 |
1 |
1 |
1 |
2 |
||||||||||||||||||||||||
| Total consumer |
72 |
85 |
89 |
91 |
87 |
||||||||||||||||||||||||
| Total nonaccrual loans |
$ |
467 |
$ |
516 |
$ |
589 |
$ |
631 |
$ |
700 |
|||||||||||||||||||
| Net Charge-Offs by Portfolio Type |
|||||||||||||||||||||||||||||
| (In millions) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||||||||
| Commercial: |
|||||||||||||||||||||||||||||
| Commercial and industrial |
$ |
2 |
$ |
2 |
$ |
5 |
$ |
(1) |
$ |
3 |
|||||||||||||||||||
| Leasing |
— |
— |
— |
2 |
— |
||||||||||||||||||||||||
| Owner occupied |
2 |
3 |
5 |
7 |
10 |
||||||||||||||||||||||||
| Municipal |
— |
— |
— |
— |
— |
||||||||||||||||||||||||
| Total commercial |
4 |
5 |
10 |
8 |
13 |
||||||||||||||||||||||||
| Commercial real estate: |
|||||||||||||||||||||||||||||
| Construction and land development |
(1) |
(3) |
(3) |
(7) |
— |
||||||||||||||||||||||||
| Term |
3 |
(2) |
5 |
7 |
16 |
||||||||||||||||||||||||
| Total commercial real estate |
2 |
(5) |
2 |
— |
16 |
||||||||||||||||||||||||
| Consumer: |
|||||||||||||||||||||||||||||
| Home equity credit line |
1 |
2 |
2 |
6 |
2 |
||||||||||||||||||||||||
| 1-4 family residential |
1 |
3 |
3 |
4 |
4 |
||||||||||||||||||||||||
| Construction and other consumer real estate |
— |
1 |
(1) |
— |
1 |
||||||||||||||||||||||||
| Bankcard and other revolving plans |
1 |
— |
2 |
1 |
2 |
||||||||||||||||||||||||
| Other |
— |
— |
— |
— |
— |
||||||||||||||||||||||||
| Total consumer loans |
3 |
6 |
6 |
11 |
9 |
||||||||||||||||||||||||
| Total net charge-offs |
$ |
9 |
$ |
6 |
$ |
18 |
$ |
19 |
$ |
38 |
|||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES |
||||||||||||||||||||
| Three Months Ended |
||||||||||||||||||||
| September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
||||||||||||||||||
| (In thousands) |
Average |
Average rate |
Average |
Average rate |
Average |
Average rate |
||||||||||||||
| ASSETS |
||||||||||||||||||||
| Money market investments |
$ |
9,454,131 |
0.26% |
$ |
8,652,403 |
0.27% |
$ |
8,111,798 |
0.27% |
|||||||||||
| Securities: |
||||||||||||||||||||
| Held-to-maturity |
778,268 |
4.73% |
740,839 |
5.07% |
756,739 |
5.11% |
||||||||||||||
| Available-for-sale |
3,071,039 |
2.22% |
3,090,910 |
2.50% |
3,035,592 |
2.41% |
||||||||||||||
| Trading account |
25,959 |
3.21% |
36,296 |
3.17% |
22,620 |
3.41% |
||||||||||||||
| Total securities |
3,875,266 |
2.73% |
3,868,045 |
3.00% |
3,814,951 |
2.95% |
||||||||||||||
| Loans held for sale |
131,652 |
3.70% |
141,313 |
3.47% |
204,597 |
3.50% |
||||||||||||||
| Loans 1: |
||||||||||||||||||||
| Loans and leases |
37,818,273 |
4.43% |
37,518,549 |
4.55% |
37,099,182 |
4.67% |
||||||||||||||
| FDIC-supported loans |
405,316 |
20.52% |
452,849 |
31.22% |
498,654 |
21.43% |
||||||||||||||
| Total loans |
38,223,589 |
4.60% |
37,971,398 |
4.87% |
37,597,836 |
4.90% |
||||||||||||||
| Total interest-earning assets |
51,684,638 |
3.66% |
50,633,159 |
3.94% |
49,729,182 |
3.99% |
||||||||||||||
| Cash and due from banks |
976,159 |
1,000,221 |
1,063,314 |
|||||||||||||||||
| Allowance for loan losses |
(810,290) |
(837,651) |
(884,363) |
|||||||||||||||||
| Goodwill |
1,014,129 |
1,014,129 |
1,014,129 |
|||||||||||||||||
| Core deposit and other intangibles |
41,751 |
45,262 |
49,069 |
|||||||||||||||||
| Other assets |
2,608,252 |
2,808,640 |
2,889,354 |
|||||||||||||||||
| Total assets |
$ |
55,514,639 |
$ |
54,663,760 |
$ |
53,860,685 |
||||||||||||||
| LIABILITIES |
||||||||||||||||||||
| Interest-bearing deposits: |
||||||||||||||||||||
| Savings and money market |
$ |
22,982,998 |
0.17% |
$ |
22,871,040 |
0.18% |
$ |
22,735,258 |
0.19% |
|||||||||||
| Time |
2,749,985 |
0.56% |
2,842,322 |
0.59% |
2,935,316 |
0.62% |
||||||||||||||
| Foreign |
1,675,256 |
0.20% |
1,642,381 |
0.20% |
1,528,665 |
0.20% |
||||||||||||||
| Total interest-bearing deposits |
27,408,239 |
0.21% |
27,355,743 |
0.22% |
27,199,239 |
0.23% |
||||||||||||||
| Borrowed funds: |
||||||||||||||||||||
| Securities sold, not yet purchased |
2,853 |
—% |
4,076 |
—% |
494 |
—% |
||||||||||||||
| Federal funds purchased and security repurchase agreements |
257,891 |
0.11% |
283,690 |
0.11% |
289,918 |
0.10% |
||||||||||||||
| Other short-term borrowings |
— |
—% |
— |
—% |
3,837 |
2.01% |
||||||||||||||
| Long-term debt |
2,198,752 |
7.81% |
2,214,215 |
8.58% |
2,331,314 |
8.85% |
||||||||||||||
| Total borrowed funds |
2,459,496 |
7.00% |
2,501,981 |
7.60% |
2,625,563 |
7.88% |
||||||||||||||
| Total interest-bearing liabilities |
29,867,735 |
0.77% |
29,857,724 |
0.84% |
29,824,802 |
0.91% |
||||||||||||||
| Noninterest-bearing deposits |
18,179,584 |
17,629,219 |
17,211,214 |
|||||||||||||||||
| Other liabilities |
591,735 |
559,219 |
608,206 |
|||||||||||||||||
| Total liabilities |
48,639,054 |
48,046,162 |
47,644,222 |
|||||||||||||||||
| Shareholders' equity: |
||||||||||||||||||||
| Preferred equity |
1,685,512 |
1,518,823 |
1,229,708 |
|||||||||||||||||
| Common equity |
5,190,073 |
5,102,082 |
4,990,317 |
|||||||||||||||||
| Controlling interest shareholders' equity |
6,875,585 |
6,620,905 |
6,220,025 |
|||||||||||||||||
| Noncontrolling interests |
— |
(3,307) |
(3,562) |
|||||||||||||||||
| Total shareholders' equity |
6,875,585 |
6,617,598 |
6,216,463 |
|||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
55,514,639 |
$ |
54,663,760 |
$ |
53,860,685 |
||||||||||||||
| Spread on average interest-bearing funds |
2.89% |
3.10% |
3.08% |
|||||||||||||||||
| Net yield on interest-earning assets |
3.22% |
3.44% |
3.44% |
|||||||||||||||||
| 1 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. |
|
| GAAP to Non-GAAP Reconciliation |
|||||||||||||||||||
| Tangible Return on Average Tangible Common Equity |
|||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||
| (Amounts in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
| Net earnings applicable to common shareholders (GAAP) |
$ |
209,707 |
$ |
55,385 |
$ |
88,324 |
$ |
35,605 |
$ |
62,322 |
|||||||||
| Adjustments, net of tax: |
|||||||||||||||||||
| Impairment loss on goodwill |
— |
— |
— |
583 |
— |
||||||||||||||
| Amortization of core deposit and other intangibles |
2,268 |
2,391 |
2,425 |
2,677 |
2,692 |
||||||||||||||
| Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a) |
$ |
211,975 |
$ |
57,776 |
$ |
90,749 |
$ |
38,865 |
$ |
65,014 |
|||||||||
| Average common equity (GAAP) |
$ |
5,190,073 |
$ |
5,102,082 |
$ |
4,990,317 |
$ |
4,862,972 |
$ |
4,758,858 |
|||||||||
| Average goodwill |
(1,014,129) |
(1,014,129) |
(1,014,129) |
(1,014,986) |
(1,015,129) |
||||||||||||||
| Average core deposit and other intangibles |
(41,751) |
(45,262) |
(49,069) |
(53,083) |
(57,345) |
||||||||||||||
| Average tangible common equity (non-GAAP) (b) |
$ |
4,134,193 |
$ |
4,042,691 |
$ |
3,927,119 |
$ |
3,794,903 |
$ |
3,686,384 |
|||||||||
| Number of days in quarter (c) |
92 |
91 |
90 |
92 |
92 |
||||||||||||||
| Number of days in year (d) |
365 |
365 |
365 |
366 |
366 |
||||||||||||||
| Tangible return on average tangible common equity (non-GAAP) (a/b/c*d) |
20.34% |
5.73% |
9.37% |
4.07% |
7.02% |
||||||||||||||
This press release presents the non-GAAP financial measure previously shown. The adjustments to reconcile from the applicable GAAP financial measure to the non-GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results.
The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measure provides a meaningful base for period-to-period and company-to-company comparisons, which will assist investors and analysts in analyzing the operating results of the Company and in predicting future performance. This non-GAAP financial measure is used by management and the Board of Directors to assess the performance of the Company's business for evaluating bank reporting segment performance, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting this non-GAAP financial measure will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management and the Board of Directors.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by stakeholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
SOURCE Zions Bancorporation
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