Zions Bancorporation Reports Earnings Of $0.34 Per Diluted Common Share For Third Quarter 2012

Oct 22, 2012, 16:10 ET from Zions Bancorporation

SALT LAKE CITY, Oct. 22, 2012 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) ("Zions" or "the Company") today reported third quarter net earnings applicable to common shareholders of $62.3 million or $0.34 per diluted common share, compared to $55.2 million or $0.30 per diluted share for the second quarter of 2012.

Adjusted for the noncash effects in the third quarter of (1) the discount amortization on conversion of subordinated debt and additional accretion, net of expense, on acquired FDIC-supported loans ($6.3 million, $0.03 per share), and (2) the remaining discount amortization for the $700 million redemption of Troubled Asset Relief Program ("TARP") preferred stock ($16.6 million, $0.09 per share), net earnings were $85.2 million or $0.46 per diluted share for the third quarter of 2012, compared to $72.9 million or $0.40 per diluted share for the second quarter of 2012.

Third Quarter 2012 Highlights

  • Loans and leases, excluding FDIC-supported loans, increased $351 million, or an annualized 3.9%, to $36.6 billion at September 30, 2012.
  • Net interest income increased to $444 million from $432 million in the second quarter; core net interest income declined slightly to $439 million from $444 million in the second quarter.
  • Both net loan and lease charge-offs and nonperforming lending-related assets declined 11%, as credit quality continues to improve.
  • Tangible common equity per common share improved to $20.24 from $19.65 in the second quarter.
  • The Company successfully completed the redemption of its TARP preferred stock.

"We are pleased with the accomplishments in the third quarter, including stronger loan growth and the final redemption of TARP funds," said Harris H. Simmons, chairman and chief executive officer. "Regarding loan growth, we currently expect stronger loan balances in the fourth quarter and in 2013," continued Mr. Simmons. "We are also pleased with the continued strong improvement in credit quality, including a strong improvement in nonperforming assets and net charge-offs compared to the prior quarter."

Loans

Loans and leases, excluding FDIC-supported loans, increased $351 million on a net basis to $36.6 billion at September 30, 2012, compared to $36.2 billion at June 30, 2012. The increases were predominantly in commercial and industrial, 1-4 family residential, and term commercial real estate loans and were widespread geographically. Decreases of $285 million in commercial owner occupied and construction and land development loans partially offset increases in other loan categories. Average loans and leases, excluding FDIC-supported loans, were $36.5 billion during the third quarter of 2012, compared to $36.1 billion during the second quarter of 2012.

Deposits

Average total deposits for the third quarter of 2012 increased $535 million, or 1.2% (5.0% annualized), to $43.5 billion, compared to $42.9 billion for the second quarter of 2012. The increase resulted from a higher level of average noninterest-bearing demand deposits, primarily in nonpersonal accounts, for the third quarter of 2012, which were $16.8 billion compared to $16.2 billion for the second quarter of 2012. The ratio of loans to deposits was 84.9% at September 30, 2012, compared to 85.4% at June 30, 2012.

Debt and Shareholders' Equity

As previously reported, on September 26, 2012, the Company redeemed the remaining $700 million of TARP preferred stock pursuant to its Capital Plan submitted to the Federal Reserve in January 2012. The increase in the preferred stock dividend this quarter primarily resulted from the remaining discount amortization related to warrants issued in conjunction with the TARP preferred stock.

As previously announced, effective September 17, 2012, approximately $5.4 million of convertible subordinated debt was converted into the Company's Series C preferred stock. Accelerated discount amortization on the converted debt increased interest expense by a pretax noncash amount of approximately $2.0 million ($1.6 million after-tax) in the third quarter of 2012, compared to $16.2 million ($13.2 million after-tax) in the second quarter of 2012.

Accumulated other comprehensive income (loss) improved by approximately $41 million, primarily due to fair value increases in CDO investment securities.

The tangible common equity ratio was 7.17% at September 30, 2012, compared to 6.91% at June 30, 2012. The estimated common equity tier 1 capital ratio was 9.84% at September 30, 2012, compared to 9.78% at June 30, 2012. 

Net Interest Income

Net interest income increased 2.8% to $444 million for the third quarter of 2012, compared to $432 million for the second quarter of 2012. Core net interest income, adjusted for the discount amortization on convertible subordinated debt and accretion on acquired loans, was approximately $439 million for the third quarter of 2012, compared to $444 million for the second quarter of 2012.

The net interest margin increased to 3.63% in the third quarter of 2012, compared to 3.62% in the second quarter of 2012. The core net interest margin decreased 12 basis points to 3.60% in the third quarter, compared to 3.72% in the second quarter.  The decreases in the core net interest income and margin were due primarily to reduced yields on loans and investment securities attributable to rate resets; on these assets, the initial rate was fixed for a period of time (typically five years) and the current benchmark index rate is significantly lower than it was at the time the assets were originated.  Similarly, maturing loans are being replaced at tighter credit spreads. 

Noninterest Income

Noninterest income for the third quarter of 2012 was $119.2 million, compared to $123.0 million for the second quarter of 2012. The decrease was primarily due to lower dividends and other investment income in the third quarter compared to higher levels recognized in the second quarter.  Other less volatile sources of noninterest income, such as various service charges on deposits and loans, were relatively stable compared to the second quarter.

CDO Investment Securities

During the third quarter of 2012, the Company recognized credit-related other-than-temporary impairment ("OTTI") on collateralized debt obligations ("CDOs") of $2.7 million or $0.01 per diluted share, compared to $7.3 million or $0.02 per diluted share during the second quarter of 2012. OTTI this quarter was due primarily to the impact of prepayments on the value of junior CDO tranches. Gains resulting from cash principal payments on CDOs previously written down, amounting to $3.0 million, exceeded OTTI during the third quarter of 2012.

The following table stratifies the CDOs into performing tranches without credit impairment and nonperforming tranches at September 30, 2012:

 

September 30, 2012

Net unrealized losses recognized in AOCI 1

Weighted average discount rate 2

% of carrying value to par

(Amounts in millions)

 

No. of

tranches

Par

amount

Amortized

cost

Carrying

value

September 30, 2012

June 30, 2012

Change

Performing CDOs

Predominantly bank CDOs

30

$

887

$

792

$

637

$

(155)

5.34

%

72

%

63

%

9

%

Insurance-only CDOs

21

450

444

322

(122)

8.51

%

72

%

73

%

(1)

%

Other CDOs

7

79

68

62

(6)

7.29

%

78

%

76

%

2

%

Total performing CDOs

58

1,416

1,304

1,021

(283)

6.46

%

72

%

67

%

5

%

Nonperforming CDOs 3

CDOs deferring interest, but never credit impaired

3

72

72

19

(53)

13.69

%

26

%

29

%

(3)

%

CDOs credit impaired prior to last 12 months

32

593

437

128

(309)

13.44

%

22

%

23

%

(1)

%

CDOs credit impaired during last 12 months

23

444

275

63

(212)

14.84

%

14

%

16

%

(2)

%

Total nonperforming CDOs

58

1,109

784

210

(574)

14.02

%

19

%

21

%

(2)

%

Total CDOs

116

$

2,525

$

2,088

$

1,231

$

(857)

9.78

%

49

%

47

%

2

%

 

1 Accumulated other comprehensive income, 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.

Fair value increases occurred in senior tranches and were driven by collateral credit quality improvements, prepayments and declining credit spreads.

Noninterest Expense

Noninterest expense for the third quarter of 2012 was $395.0 million compared to $401.7 million for the second quarter of 2012. The decrease was due primarily to a reduction in other real estate expense resulting from increased net gains on property sales, and to a decline in the provision for unfunded lending commitments.

Asset Quality

Net loan and lease charge-offs decreased 11% to $38 million for the third quarter of 2012, compared to $43 million million for the second quarter of 2012; gross charge-offs declined 20% compared to the second quarter and have declined 54% compared to the year-ago period. Net charge-offs declined primarily in commercial and industrial and home equity credit line loans. 

Nonperforming lending-related assets declined 11% to $838 million at September 30, 2012 from $938 million at June 30, 2012. Nonaccrual loans declined 9% to $719 million at September 30, 2012 from $793 million at June 30, 2012. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 2.23% at September 30, 2012, compared to 2.53% at June 30, 2012.

Classified loans, excluding FDIC-supported loans, decreased approximately 4% to $1.8 billion at September 30, 2012, compared to $1.9 billion at June 30, 2012. Approximately 76% of classified loans were current as to principal and interest for the third quarter of 2012, compared to 73% for the second quarter of 2012.

The provision (credit) for loan losses was $(1.9) million for the third quarter of 2012, compared to $10.9 million for the second quarter of 2012. The allowance for credit losses was $1.0 billion, or 2.77% of loans and leases at September 30, 2012, compared to $1.1 billion, or 2.92% of loans and leases at June 30, 2012. The reduction in both the allowance and the provision is attributable to improvement in the quantity and severity of problem loans.

Conference Call

Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 22, 2012). 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 32821169, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. ET on Monday, October 22, 2012, until midnight ET on Monday, October 29, 2012, by dialing 404-537-3406 (domestic and international) and entering the same passcode. 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 500 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. 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 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 private and governmental legal actions or changes in existing private and governmental legal actions; 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 (including The Dodd-Frank Wall Street Reform and Consumer Protection Act); and changes in accounting policies, procedures or determinations 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).

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

(Unaudited)

 

Three Months Ended

(In thousands, except share, per share, and ratio data)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

PER COMMON SHARE

Dividends

$

0.01

$

0.01

$

0.01

$

0.01

$

0.01

Book value per common share 1

26.05

25.48

25.25

25.02

24.78

Tangible common equity per common share 1

20.24

19.65

19.39

19.14

18.87

SELECTED RATIOS

Return on average assets

0.82

%

0.70

%

0.69

%

0.67

%

0.84

%

Return on average common equity

5.21

%

4.71

%

2.21

%

3.84

%

5.58

%

Net interest margin

3.63

%

3.62

%

3.73

%

3.86

%

3.99

%

Capital Ratios

Tangible common equity ratio 1

7.17

%

6.91

%

6.89

%

6.77

%

6.90

%

Tangible equity ratio 1

9.32

%

10.35

%

10.24

%

11.33

%

11.56

%

Average equity to average assets

12.22

%

12.37

%

13.31

%

13.27

%

13.51

%

Risk-Based Capital Ratios 1,2

Common equity tier 1 capital

9.84

%

9.78

%

9.71

%

9.57

%

9.53

%

Tier 1 leverage

11.04

%

12.31

%

12.17

%

13.40

%

13.48

%

Tier 1 risk-based capital

13.46

%

15.03

%

14.83

%

16.13

%

16.10

%

Total risk-based capital

15.21

%

16.89

%

16.76

%

18.06

%

18.12

%

Taxable-equivalent net interest income

$

448,632

$

436,610

$

447,161

$

466,699

$

475,580

Weighted average common and common-equivalent shares outstanding

183,382,650

183,136,631

182,963,828

182,823,190

182,857,702

Common shares outstanding 1

184,156,402

184,117,522

184,228,178

184,135,388

184,294,782

1 At period end.

2 Ratios for September 30, 2012 are estimates.

 

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

ASSETS

Cash and due from banks

$

1,060,918

$

1,124,673

$

1,082,186

$

1,224,350

$

1,102,768

Money market investments:

Interest-bearing deposits

5,519,463

7,887,175

7,629,399

7,020,895

5,118,066

Federal funds sold and security resell agreements

1,960,294

83,529

52,634

102,159

165,106

Investment securities:

Held-to-maturity, at adjusted cost (approximate fair value $655,768, $715,710, $728,479, $729,974, and $715,608)

740,738

773,016

797,149

807,804

791,569

Available-for-sale, at fair value

3,127,192

3,167,590

3,223,086

3,230,795

3,970,602

Trading account, at fair value

13,963

20,539

19,033

40,273

49,782

3,881,893

3,961,145

4,039,268

4,078,872

4,811,953

Loans held for sale

220,240

139,245

184,579

201,590

159,300

Loans, net of unearned income and fees:

Loans and leases

36,582,253

36,231,104

35,903,475

36,393,782

35,924,054

FDIC-supported loans

588,566

642,246

687,126

750,870

800,454

37,170,819

36,873,350

36,590,601

37,144,652

36,724,508

Less allowance for loan losses

925,341

971,716

1,010,059

1,049,958

1,148,903

Loans, net of allowance

36,245,478

35,901,634

35,580,542

36,094,694

35,575,605

Other noninterest-bearing investments

874,903

867,882

875,037

865,231

860,045

Premises and equipment, net

709,188

714,913

715,815

719,276

726,503

Goodwill

1,015,129

1,015,129

1,015,129

1,015,129

1,015,129

Core deposit and other intangibles

55,034

59,277

63,538

67,830

72,571

Other real estate owned

118,190

144,816

158,592

153,178

203,173

Other assets

1,426,271

1,507,594

1,499,588

1,605,905

1,721,101

$

53,087,001

$

53,407,012

$

52,896,307

$

53,149,109

$

51,531,320

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Noninterest-bearing demand

$

17,295,911

$

16,498,248

$

16,185,140

$

16,110,857

$

14,911,729

Interest-bearing:

Savings and NOW

7,685,192

7,505,841

7,406,910

7,159,101

6,711,002

Money market

14,284,870

14,439,389

14,813,495

14,616,740

14,576,527

Time

3,107,815

3,211,942

3,326,717

3,413,550

3,536,755

Foreign

1,398,749

1,504,827

1,366,826

1,575,361

1,627,135

43,772,537

43,160,247

43,099,088

42,875,609

41,363,148

Securities sold, not yet purchased

21,708

104,882

47,404

44,486

30,070

Federal funds purchased and security repurchase agreements

451,214

759,591

486,808

608,098

630,901

Other short-term borrowings

6,608

7,621

19,839

70,273

125,290

Long-term debt

2,326,659

2,274,571

2,283,121

1,954,462

1,898,439

Reserve for unfunded lending commitments

105,850

103,586

98,718

102,422

98,062

Other liabilities

484,170

507,151

474,551

510,531

466,493

Total liabilities

47,168,746

46,917,649

46,509,529

46,165,881

44,612,403

Shareholders' equity:

Preferred stock, without par value, authorized 4,400,000 shares

1,123,377

1,800,473

1,737,633

2,377,560

2,354,523

Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 184,156,402, 184,117,522, 184,228,178, 184,135,388, and 184,294,782 shares

4,162,001

4,157,525

4,162,522

4,163,242

4,160,697

Retained earnings

1,170,477

1,110,120

1,060,525

1,036,590

994,380

Accumulated other comprehensive income (loss)

(534,738)

(576,147)

(571,567)

(592,084)

(588,834)

Controlling interest shareholders' equity

5,921,117

6,491,971

6,389,113

6,985,308

6,920,766

Noncontrolling interests

(2,862)

(2,608)

(2,335)

(2,080)

(1,849)

Total shareholders' equity

5,918,255

6,489,363

6,386,778

6,983,228

6,918,917

$

53,087,001

$

53,407,012

$

52,896,307

$

53,149,109

$

51,531,320

 

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended

(In thousands, except per share amounts)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Interest income:

Interest and fees on loans

$

479,199

$

478,569

$

486,615

$

504,243

$

520,133

Interest on money market investments

5,349

5,099

4,628

4,308

3,482

Interest on securities:

Held-to-maturity

8,337

9,325

8,959

9,106

8,937

Available-for-sale

22,042

25,090

23,158

21,268

21,382

Trading account

110

148

338

548

462

Total interest income

515,037

518,231

523,698

539,473

554,396

Interest expense:

Interest on deposits

19,049

20,823

23,413

26,645

31,093

Interest on short-term borrowings

193

256

779

1,221

1,501

Interest on long-term debt

51,597

65,165

57,207

49,699

51,207

Total interest expense

70,839

86,244

81,399

77,565

83,801

Net interest income

444,198

431,987

442,299

461,908

470,595

Provision for loan losses

(1,889)

10,853

15,664

(1,476)

14,553

Net interest income after provision for loan losses

446,087

421,134

426,635

463,384

456,042

Noninterest income:

Service charges and fees on deposit accounts

44,951

43,426

43,532

42,873

44,154

Other service charges, commissions and fees

38,642

38,554

34,226

38,539

45,308

Trust and wealth management income

6,521

8,057

6,374

6,481

6,269

Capital markets and foreign exchange

6,026

7,342

5,734

8,106

7,729

Dividends and other investment income

11,686

21,542

9,480

7,805

9,356

Loan sales and servicing income

10,695

10,287

8,352

6,058

6,165

Fair value and nonhedge derivative loss

(5,820)

(6,784)

(4,400)

(4,677)

(5,718)

Equity securities gains, net

2,683

107

9,145

1,961

5,289

Fixed income securities gains, net

3,046

5,519

720

1,288

13,035

Impairment losses on investment securities:

Impairment losses on investment securities

(3,876)

(24,026)

(18,273)

(12,351)

(55,530)

Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income)

1,140

16,718

8,064

265

42,196

Net impairment losses on investment securities

(2,736)

(7,308)

(10,209)

(12,086)

(13,334)

Other

3,495

2,280

4,045

1,956

2,789

Total noninterest income

119,189

123,022

106,999

98,304

121,042

Noninterest expense:

Salaries and employee benefits

220,223

220,765

224,634

220,290

216,855

Occupancy, net

28,601

28,169

27,951

27,899

29,040

Furniture and equipment

27,122

27,302

26,792

27,036

26,852

Other real estate expense

207

6,440

7,810

14,936

20,564

Credit related expense

13,316

12,415

13,485

14,213

15,379

Provision for unfunded lending commitments

2,264

4,868

(3,704)

4,360

(2,202)

Legal and professional services

12,749

12,947

11,096

14,974

8,897

Advertising

7,326

6,618

5,807

7,780

6,511

FDIC premiums

11,278

10,444

10,919

12,012

12,573

Amortization of core deposit and other intangibles

4,241

4,262

4,291

4,741

4,773

Other

67,648

67,426

63,291

76,799

69,776

Total noninterest expense

394,975

401,656

392,372

425,040

409,018

Income before income taxes

170,301

142,500

141,262

136,648

168,066

Income taxes

60,704

51,036

51,859

47,877

59,348

Net income

109,597

91,464

89,403

88,771

108,718

Net loss applicable to noncontrolling interests

(254)

(273)

(273)

(248)

(375)

Net income applicable to controlling interest

109,851

91,737

89,676

89,019

109,093

Preferred stock dividends

(47,529)

(36,522)

(64,187)

(44,599)

(43,928)

Net earnings applicable to common shareholders

$

62,322

$

55,215

$

25,489

$

44,420

$

65,165

Weighted average common shares outstanding during the period:

Basic shares

183,237

182,985

182,798

182,703

182,676

Diluted shares

183,383

183,137

182,964

182,823

182,858

Net earnings per common share:

Basic

$

0.34

$

0.30

$

0.14

$

0.24

$

0.35

Diluted

0.34

0.30

0.14

0.24

0.35

 

Loans Balances by Portfolio Type

(Unaudited)

(In millions)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Commercial:

Commercial and industrial

$

10,748

$

10,383

$

10,157

$

10,335

$

9,733

Leasing

405

406

394

380

366

Owner occupied

7,669

7,811

7,887

8,159

8,326

Municipal

469

477

441

441

440

Total commercial

19,291

19,077

18,879

19,315

18,865

Commercial real estate:

Construction and land development

1,956

2,099

2,100

2,265

2,467

Term

8,140

8,011

8,070

7,883

7,723

Total commercial real estate

10,096

10,110

10,170

10,148

10,190

Consumer:

Home equity credit line

2,175

2,181

2,167

2,187

2,161

1-4 family residential

4,181

4,019

3,875

3,921

3,891

Construction and other consumer real estate

320

328

316

306

303

Bankcard and other revolving plans

295

284

274

291

278

Other

224

232

223

226

236

Total consumer

7,195

7,044

6,855

6,931

6,869

FDIC-supported loans 1

589

642

687

751

801

Total loans

$

37,171

$

36,873

$

36,591

$

37,145

$

36,725

1 FDIC-supported loans represent loans acquired from the FDIC subject to loss sharing agreements.

 

FDIC-Supported Loans – Effect of Higher Accretion

    and Impact on FDIC Indemnification Asset

(Unaudited)

(In thousands)

September 30, 2012

June 30, 2012

 

March 31, 2012

 

December 31, 2011

 

September 30, 2011

Balance sheet:

Change in assets from reestimation of cash flows – increase (decrease):

FDIC-supported loans

$

17,594

$

14,761

$

13,171

$

17,003

$

20,642

FDIC indemnification asset (included in other assets)

(14,401)

(11,233)

(10,002)

(13,126)

(15,431)

Balance at end of period:

FDIC-supported loans

588,566

642,246

687,126

750,870

800,454

FDIC indemnification asset (included in other assets)

100,004

117,167

123,862

137,719

151,164

Three Months Ended

(In thousands)

September 30, 2012

June 30, 2012

 

March 31, 2012

December 31, 2011

September 30, 2011

Statement of income:

Interest income:

Interest and fees on loans

$

17,594

$

14,761

$

13,171

$

17,003

$

20,642

Noninterest expense:

Other noninterest expense

14,401

11,233

10,002

13,126

15,431

Net increase in pretax income

$

3,193

$

3,528

$

3,169

$

3,877

$

5,211

 

 

 

Nonperforming Lending-Related Assets

(Unaudited)

(Amounts in thousands)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Nonaccrual loans

$

699,941

$

771,510

$

849,543

$

885,608

$

1,038,803

Other real estate owned

106,356

125,142

129,676

128,874

170,023

Nonperforming lending-related assets, excluding FDIC-supported assets

806,297

896,652

979,219

1,014,482

1,208,826

FDIC-supported nonaccrual loans

19,465

21,980

22,623

24,267

29,082

FDIC-supported other real estate owned

11,834

19,674

28,916

24,304

33,150

FDIC-supported nonperforming assets

31,299

41,654

51,539

48,571

62,232

Total nonperforming lending-related assets

$

837,596

$

938,306

$

1,030,758

$

1,063,053

$

1,271,058

Ratio of nonperforming lending-related assets to loans 1 and leases and other real estate owned

2.23%

2.53%

2.79%

2.83%

3.43%

Accruing loans past due 90 days or more, excluding FDIC-supported loans

$

14,508

$

29,460

$

38,172

$

19,145

$

15,863

Accruing FDIC-supported loans past due 90 days or more

60,913

70,453

76,945

74,611

85,714

Ratio of accruing loans past due 90 days or more to loans 1 and leases

0.20%

0.27%

0.31%

0.25%

0.28%

Nonaccrual loans and accruing loans past due 90 days or more

$

794,827

$

893,403

$

987,283

$

1,003,631

$

1,169,462

Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans 1 and leases

2.13%

2.41%

2.68%

2.69%

3.17%

Accruing loans past due 30 - 89 days, excluding FDIC-supported loans

$

143,539

$

142,501

$

171,224

$

183,976

$

174,250

Accruing FDIC-supported loans past due 30 - 89 days

15,462

15,519

13,899

24,691

13,816

Restructured loans included in nonaccrual loans

207,089

227,568

276,669

295,825

308,159

Restructured loans on accrual

421,055

393,360

401,554

448,109

430,253

Classified loans, excluding FDIC-supported loans

1,810,099

1,880,932

2,076,220

2,056,472

2,361,574

 

1 Includes loans held for sale.

 

Allowance for Credit Losses

(Unaudited)

Three Months Ended

(Amounts in thousands)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Allowance for Loan Losses

Balance at beginning of period

$

971,716

$

1,010,059

$

1,049,958

$

1,148,903

$

1,237,733

Add:

Provision for losses

(1,889)

10,853

15,664

(1,476)

14,553

Adjustment for FDIC-supported loans

(5,908)

(5,856)

(1,057)

(2,655)

(1,520)

Deduct:

Gross loan and lease charge-offs

(58,781)

(73,685)

(80,014)

(120,599)

(129,146)

Recoveries

20,203

30,345

25,508

25,785

27,283

Net loan and lease charge-offs

(38,578)

(43,340)

(54,506)

(94,814)

(101,863)

Balance at end of period

$

925,341

$

971,716

$

1,010,059

$

1,049,958

$

1,148,903

Ratio of allowance for loan losses to loans and leases, at period end

2.49%

2.64%

2.76%

2.83%

3.13%

Ratio of allowance for loan losses to nonperforming loans, at period end

128.63%

122.46%

115.81%

115.40%

107.59%

Annualized ratio of net loan and lease charge-offs to average loans

0.42%

0.47%

0.59%

1.03%

1.11%

Reserve for Unfunded Lending Commitments

Balance at beginning of period

$

103,586

$

98,718

$

102,422

$

98,062

$

100,264

Provision charged (credited) to earnings

2,264

4,868

(3,704)

4,360

(2,202)

Balance at end of period

$

105,850

$

103,586

$

98,718

$

102,422

$

98,062

Total Allowance for Credit Losses

Allowance for loan losses

$

925,341

$

971,716

$

1,010,059

$

1,049,958

$

1,148,903

Reserve for unfunded lending commitments

105,850

103,586

98,718

102,422

98,062

Total allowance for credit losses

$

1,031,191

$

1,075,302

$

1,108,777

$

1,152,380

$

1,246,965

Ratio of total allowance for credit losses to loans and leases outstanding, at period end

2.77%

2.92%

3.03%

3.10%

3.40%

 

 

 

Nonaccrual Loans by Portfolio Type

(Excluding FDIC-Supported Loans)

(Unaudited)

(In millions)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Loans held for sale

$

$

$

$

18

$

18

Commercial:

Commercial and industrial

103

133

149

127

176

Leasing

1

1

1

2

1

Owner occupied

223

240

245

239

268

Municipal

6

Total commercial

333

374

395

368

445

Commercial real estate:

Construction and land development

125

115

148

220

245

Term

155

182

191

156

189

Total commercial real estate

280

297

339

376

434

Consumer:

Home equity credit line

12

14

17

18

15

1-4 family residential

66

76

87

91

108

Construction and other consumer real estate

6

8

8

12

16

Bankcard and other revolving plans

1

1

1

Other

2

2

3

3

3

Total consumer

87

101

116

124

142

Total nonaccrual loans

$

700

$

772

$

850

$

886

$

1,039

 

Net Charge-Offs by Portfolio Type

(Unaudited)

(In millions)

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

September 30, 2011

Commercial:

Commercial and industrial

$

3

$

9

$

17

$

9

$

27

Leasing

Owner occupied

10

10

8

33

27

Municipal

Total commercial

13

19

25

42

54

Commercial real estate:

Construction and land development

(2)

(2)