Zions Bancorporation Reports Annual Net Earnings for 2013 of $294 Million, With Strong Loan Growth in the Fourth Quarter
SALT LAKE CITY, Jan. 27, 2014 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) ("Zions" or "the Company") today reported annual net earnings for 2013 of $294 million, or $1.58 per diluted common share, compared to $179 million, or $0.97 per diluted share, for 2012.
The Company reported a fourth quarter of 2013 net loss applicable to common shareholders of $(59.4) million or $(0.32) per diluted common share. The quarterly loss included impairment charges on collateralized debt obligation ("CDO") securities as a result of both the Company's decision to reduce risk within its CDO portfolio, and the impact of the final provisions of the Volcker Rule. The loss also included debt extinguishment costs that resulted from the Company's successful tender offer for some of its high cost subordinated debt. The total impairment charges and debt extinguishment costs were $222 million pretax or $0.74 per diluted share after-tax.
For comparative purposes, net earnings for the third quarter of 2013 were $209.7 million or $1.12 per diluted share, and $35.6 million or $0.19 per diluted share for the fourth quarter of 2012. The third quarter amount included a $126 million or $0.68 per diluted share increase to net earnings for the redemption of all of the Company's Series C preferred stock.
Fourth Quarter 2013 Highlights
- Loans and leases held for investment, excluding FDIC-supported loans, increased $795 million compared to the prior quarter to $38.7 billion at December 31, 2013. Average loans and leases, excluding FDIC-supported loans, increased $442 million.
- Net interest income, excluding the effect of income from FDIC-supported loans, increased modestly compared to the previous quarter.
- Credit quality showed continued improvement, with nonperforming lending-related assets and classified loans declining 16% and 13%, respectively, compared to the prior quarter. This continued improvement resulted in a fourth quarter negative provision for loan losses of $31 million.
- The fair value of the CDO portfolio increased by $137 million during the quarter, even as sales and paydowns reduced the par balance of the portfolio.
- Tangible book value per share improved by 3% compared to the prior quarter, increasing to $23.88 from $23.16; compared to the year-ago period, tangible book value per share improved by approximately 14%, a significant portion of which is attributable to the improvement in fair values of CDOs.
"We are pleased with the improvement in loan growth, further strengthening of credit quality, and stabilization of the net interest margin during the quarter. Additionally, the steps we are taking to reduce risk in our securities portfolio, combined with continued strengthening of our capital ratios, positions us well to serve our customers and grow as the economy continues to improve," said Harris H. Simmons, chairman and chief executive officer.
Dividend Announcement
In addition to announcing its fourth quarter financial results, the Company also announced today that its Board of Directors declared a regular quarterly dividend of $0.04 per common share. The dividend is payable February 27, 2014 to shareholders of record on February 20, 2014. The Board of Directors also declared the regular quarterly cash dividends on the Company's various perpetual preferred shares. The cash dividends on the Series A, F, G, H and J shares are payable on March 15, 2014 to shareholders of record on March 1, 2014. The cash dividends on the Series I shares are payable on June 15, 2014 to shareholders of record on June 1, 2014.
Loans
Loans and leases held for investment, excluding FDIC-supported loans, increased $795 million, or 2%, to $38.7 billion at December 31, 2013 from $37.9 billion at September 30, 2013. The increases were predominantly in commercial and industrial loans primarily in Texas and California, and in 1-4 family residential loans primarily in Texas and Utah. Average loans and leases, excluding FDIC-supported loans, increased $442 million, or 1%, to $38.3 billion during the fourth quarter of 2013, compared to $37.8 billion during the third quarter of 2013. Unfunded lending commitments at December 31, 2013 increased by approximately $578 million during the fourth quarter of 2013 to a total of $17.2 billion at December 31, 2013, compared to a $488 million increase during the third quarter of 2013.
Deposits
Average total deposits for the fourth quarter of 2013 increased $0.7 billion, or 1%, to $46.3 billion, compared to $45.6 billion for the third quarter of 2013. This increase was driven primarily by noninterest-bearing demand deposits, which increased to an average of $18.8 billion in the fourth quarter from $18.2 billion in the third quarter. The ratio of average loans to average deposits was 84% for the fourth quarter, unchanged from the third quarter.
Debt and Shareholders' Equity
The Company completed the following debt transactions during the quarter, excluding those in its medium-term note program:
- On November 5, 2013, the Company issued $162 million of qualifying Tier 2 fixed/floating rate subordinated notes due November 15, 2023. Interest payments at a rate of 5.65% commence May 15, 2014 and continue semiannually to the earliest possible redemption date of November 15, 2018, after which they are payable quarterly at an annual floating rate equal to three-month LIBOR plus 4.19%. Net proceeds were approximately $160 million.
- Effective December 6, 2013, the Company completed the purchases of $250 million par amount of its 5.5% and 6.0% convertible and nonconvertible subordinated notes. The purchases were made as a result of separate cash tender offers totaling $250 million that were announced on November 6, 2013. The total debt extinguishment cost recorded by the Company as a result of these purchases was approximately $80 million pretax or $0.27 per diluted share after-tax.
The estimated common equity Tier 1 capital ratio was 10.15% at December 31, 2013, compared to 10.47% at September 30, 2013.
CDO Investment Securities
As explained in the Company's press release issued January 21, 2014, the Company reached a decision to sell a portion of its CDO portfolio, which resulted in impairment charges of those securities to their fair values. This decision was the result of an analysis of the Company's CDO securities under the Volcker Rule (as subsequently modified by the Interim Final Rule) and other factors. The total OTTI adjustment reduced net earnings for the fourth quarter by approximately $142 million pretax or $0.47 per diluted share after-tax.
The following table provides selected information on the CDOs, stratified into performing tranches without credit impairment and nonperforming tranches at December 31, 2013:
|
December 31, 2013 |
|||||||||||||||||||||||||||||
|
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 |
December 31, 2013 |
September 30, 2013 |
Change | ||||||||||||||||||||||
|
Performing CDOs |
|||||||||||||||||||||||||||||
|
Predominantly bank CDOs |
23 |
$ 687 |
$ 617 |
$ 499 |
$ (118) |
5.6% |
73% |
71% |
2% | ||||||||||||||||||||
|
Insurance CDOs |
22 |
433 |
413 |
346 |
(67) |
4.9% |
80% |
75% |
5% | ||||||||||||||||||||
|
Other CDOs |
3 |
43 |
26 |
26 |
— |
10.6% |
60% |
75% |
(15)% | ||||||||||||||||||||
|
Total performing CDOs |
48 |
1,163 |
1,056 |
871 |
(185) |
5.5% |
75% |
73% |
2% | ||||||||||||||||||||
|
Nonperforming CDOs 3 |
|||||||||||||||||||||||||||||
|
CDOs credit impaired prior to last 12 months |
32 |
614 |
369 |
285 |
(84) |
7.0% |
46% |
42% |
4% | ||||||||||||||||||||
|
CDOs credit impaired during last 12 months |
23 |
448 |
187 |
150 |
(37) |
6.5% |
33% |
27% |
6% | ||||||||||||||||||||
|
Total nonperforming CDOs |
55 |
1,062 |
556 |
435 |
(121) |
6.8% |
41% |
30% |
11% | ||||||||||||||||||||
|
Total CDOs |
103 |
$ 2,225 |
$ 1,612 |
$ 1,306 |
$ (306) |
6.1% |
59% |
52% |
7% | ||||||||||||||||||||
|
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 following table shows changes in selected information on the CDOs from December 31, 2012 to December 31, 2013:
|
Change from December 31, 2012 to December 31, 2013 | |||||||||||||||||||||||||||||
|
Decrease (increase) in net unrealized losses recognized in OCI |
Weighted average discount rate |
||||||||||||||||||||||||||||
|
(Amounts in millions) |
No. of tranches |
Par amount |
Amortized cost |
Carrying value |
% of carrying value to par | ||||||||||||||||||||||||
|
Performing CDOs |
|||||||||||||||||||||||||||||
|
Predominantly bank CDOs |
(5) |
$ (124) |
$ (110) |
$ (39) |
$ 71 |
(2.2)% |
7% |
||||||||||||||||||||||
|
Insurance CDOs |
— |
(21) |
(36) |
19 |
55 |
(3.7)% |
8% |
||||||||||||||||||||||
|
Other CDOs |
(3) |
(11) |
(17) |
(12) |
5 |
1.2% |
(10)% |
||||||||||||||||||||||
|
Total performing CDOs |
(8) |
(156) |
(163) |
(32) |
131 |
(2.6)% |
7% |
||||||||||||||||||||||
|
Nonperforming CDOs |
|||||||||||||||||||||||||||||
|
Credit impairment prior to last 12 months |
14 |
245 |
118 |
176 |
58 |
(3.7)% |
16% |
||||||||||||||||||||||
|
Credit impairment during last 12 months |
(16) |
(284) |
(254) |
(31) |
223 |
(3.1)% |
8% |
||||||||||||||||||||||
|
Total nonperforming CDOs |
(2) |
(39) |
(136) |
145 |
281 |
(3.2)% |
15% |
||||||||||||||||||||||
|
Total CDOs |
(10) |
$ (195) |
$ (299) |
$ 113 |
$ 412 |
(2.9)% |
10% |
||||||||||||||||||||||
The primary improvement to the Company's accumulated other comprehensive income ("AOCI") during the fourth quarter is attributable to the recognition in earnings of unrealized losses on CDO securities and to an increase in fair value of the CDO securities.
Net Interest Income
Excluding income from FDIC-supported loans, net interest income increased slightly compared to the prior quarter due to stronger loan growth, partially offset by reduced yield in the loan portfolio. Interest income from FDIC-supported loans also improved by approximately $13 million due to payoffs. In total, net interest income increased to $432 million for the fourth quarter of 2013, compared to $416 million for the third quarter of 2013. The net interest margin increased to 3.33% in the fourth quarter of 2013, compared to 3.22% in the third quarter of 2013 primarily as a result of the strong performance of FDIC-supported loans.
Noninterest Income
Noninterest income for the fourth quarter of 2013 was $(31) million, compared to $122 million for the third quarter of 2013. The significant majority of the linked quarter decline was attributable to the OTTI on CDO securities, as previously discussed. Loan sales and servicing income decreased primarily due to a lower volume of mortgage refinancing.
Noninterest Expense
Noninterest expense for the fourth quarter of 2013 was $495 million compared to $371 million for the third quarter of 2013. Increases this quarter compared to the previous quarter were due primarily to (1) the debt extinguishment cost of $80 million, (2) the change in the provision for unfunded lending commitments to $5.6 million this quarter from a negative provision of $19.9 million in the third quarter, due in part to a higher volume of loan commitments, (3) the increase in professional and legal services to $23.9 million in the fourth quarter from $16.5 million in the third quarter, and (4) an increase in the amortization of the FDIC indemnification asset to $19.9 million, compared to the prior quarter amount of $13.0 million, included in other noninterest expense. The increase in professional and legal services was primarily due to consulting expense related to the Company's Comprehensive Capital Analysis and Review ("CCAR") submission.
Asset Quality
Nonperforming lending-related assets declined 16% to $453 million at December 31, 2013 from $538 million at September 30, 2013, primarily due to favorable resolutions. Nonaccrual loans declined 14% to $407 million at December 31, 2013 from $472 million at September 30, 2013. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 1.15% at December 31, 2013, compared to 1.40% at September 30, 2013.
Classified loans, excluding FDIC-supported loans, decreased approximately 13% to $1.2 billion at December 31, 2013, compared to $1.4 billion at September 30, 2013. Consistent with recent quarters, approximately 84% were current as to principal and interest.
Net loan and lease charge-offs increased to $19 million in the fourth quarter of 2013, compared to $9 million in the third quarter of 2013.
The negative provision for loan losses was $31 million for the fourth quarter of 2013, compared to a negative provision of $6 million for the third quarter of 2013. The negative provision continues to result from the improvement in credit quality. The allowance for credit losses was $836 million, or 2.14% of loans and leases at December 31, 2013, compared to $882 million, or 2.30% of loans and leases at September 30, 2013. The Company's allowance for credit losses remains among the strongest of its peer regional banks.
Conference Call
Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 27, 2014). 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 29467185, 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, and its Current Report on Form 8-K dated January 21, 2014, 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) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||
|
PER COMMON SHARE |
|||||||||||||||||||
|
Dividends |
$ 0.04 |
$ 0.04 |
$ 0.04 |
$ 0.01 |
$ 0.01 | ||||||||||||||
|
Book value per common share 1 |
29.57 |
28.87 |
27.82 |
27.43 |
26.73 | ||||||||||||||
|
Tangible common equity per common share 1 |
23.88 |
23.16 |
22.09 |
21.67 |
20.95 | ||||||||||||||
|
SELECTED RATIOS |
|||||||||||||||||||
|
Return on average assets |
(0.30)% |
0.80% |
0.61% |
0.83% |
0.43% | ||||||||||||||
|
Return on average common equity |
(4.51)% |
16.03% |
4.35% |
7.18% |
2.91% | ||||||||||||||
|
Tangible return on average tangible common equity |
(5.45)% |
20.34% |
5.73% |
9.37% |
4.07% | ||||||||||||||
|
Net interest margin |
3.33% |
3.22% |
3.44% |
3.44% |
3.47% | ||||||||||||||
|
Capital Ratios |
|||||||||||||||||||
|
Tangible common equity ratio 1 |
8.02% |
7.90% |
7.57% |
7.53% |
7.09% | ||||||||||||||
|
Tangible equity ratio 1 |
9.85% |
9.75% |
10.78% |
9.97% |
9.15% | ||||||||||||||
|
Average equity to average assets |
11.20% |
12.39% |
12.11% |
11.54% |
11.03% | ||||||||||||||
|
Risk-Based Capital Ratios 1,2 |
|||||||||||||||||||
|
Common equity Tier 1 capital |
10.15% |
10.47% |
10.03% |
10.07% |
9.80% | ||||||||||||||
|
Tier 1 leverage |
10.48% |
10.63% |
11.75% |
11.55% |
10.96% | ||||||||||||||
|
Tier 1 risk-based capital |
12.72% |
13.10% |
14.30% |
14.08% |
13.38% | ||||||||||||||
|
Total risk-based capital |
14.62% |
14.82% |
15.94% |
15.75% |
15.05% | ||||||||||||||
|
Taxable-equivalent net interest income |
$ 435,714 |
$ 419,236 |
$ 434,579 |
$ 422,252 |
$ 434,252 | ||||||||||||||
|
Weighted average common and common- equivalent shares outstanding |
184,208,544 |
184,742,414 |
184,061,623 |
183,655,129 |
183,456,109 | ||||||||||||||
|
Common shares outstanding 1 |
184,677,696 |
184,600,005 |
184,436,656 |
184,246,471 |
184,199,198 | ||||||||||||||
|
1 At period end. |
|||||||||||||||||||
|
2 Ratios for December 31, 2013 are estimates. |
|||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||
|
(In thousands, except share amounts) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||||||
|
ASSETS |
|||||||||||||||||||
|
Cash and due from banks |
$ 1,175,083 |
$ 1,365,082 |
$ 1,183,097 |
$ 928,817 |
$ 1,841,907 | ||||||||||||||
|
Money market investments: |
|||||||||||||||||||
|
Interest-bearing deposits |
8,175,048 |
8,180,639 |
8,180,010 |
5,785,268 |
5,978,978 | ||||||||||||||
|
Federal funds sold and security resell agreements |
282,248 |
209,070 |
221,799 |
2,340,177 |
2,775,354 | ||||||||||||||
|
Investment securities: |
|||||||||||||||||||
|
Held-to-maturity, at adjusted cost (approximate fair value |
588,981 |
777,849 |
783,371 |
736,158 |
756,909 | ||||||||||||||
|
Available-for-sale, at fair value |
3,701,886 |
3,333,889 |
3,193,395 |
3,287,844 |
3,091,310 | ||||||||||||||
|
Trading account, at fair value |
34,559 |
38,278 |
26,385 |
28,301 |
28,290 | ||||||||||||||
|
4,325,426 |
4,150,016 |
4,003,151 |
4,052,303 |
3,876,509 | |||||||||||||||
|
Loans held for sale |
171,328 |
114,810 |
164,619 |
161,559 |
251,651 | ||||||||||||||
|
Loans, net of unearned income and fees: |
|||||||||||||||||||
|
Loans and leases |
38,693,094 |
37,897,869 |
37,756,010 |
37,284,694 |
37,137,006 | ||||||||||||||
|
FDIC-supported loans |
350,271 |
374,861 |
431,935 |
477,725 |
528,241 | ||||||||||||||
|
39,043,365 |
38,272,730 |
38,187,945 |
37,762,419 |
37,665,247 | |||||||||||||||
|
Less allowance for loan losses |
746,291 |
797,523 |
813,912 |
841,781 |
896,087 | ||||||||||||||
|
Loans, net of allowance |
38,297,074 |
37,475,207 |
37,374,033 |
36,920,638 |
36,769,160 | ||||||||||||||
|
Other noninterest-bearing investments |
855,642 |
851,349 |
852,939 |
855,388 |
855,462 | ||||||||||||||
|
Premises and equipment, net |
726,372 |
720,365 |
717,299 |
706,746 |
708,882 | ||||||||||||||
|
Goodwill |
1,014,129 |
1,014,129 |
1,014,129 |
1,014,129 |
1,014,129 | ||||||||||||||
|
Core deposit and other intangibles |
36,444 |
39,667 |
43,239 |
47,000 |
50,818 | ||||||||||||||
|
Other real estate owned |
46,105 |
66,381 |
80,789 |
89,904 |
98,151 | ||||||||||||||
|
Other assets |
926,228 |
1,001,597 |
1,069,436 |
1,208,635 |
1,290,917 | ||||||||||||||
|
$ 56,031,127 |
$ 55,188,312 |
$ 54,904,540 |
$ 54,110,564 |
$ 55,511,918 | |||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
|
Deposits: |
|||||||||||||||||||
|
Noninterest-bearing demand |
$ 18,758,753 |
$ 18,566,137 |
$ 17,803,950 |
$ 17,311,150 |
$ 18,469,458 | ||||||||||||||
|
Interest-bearing: |
|||||||||||||||||||
|
Savings and money market |
23,029,928 |
22,806,132 |
22,887,404 |
22,760,397 |
22,896,624 | ||||||||||||||
|
Time |
2,593,038 |
2,689,688 |
2,810,431 |
2,889,903 |
2,962,931 | ||||||||||||||
|
Foreign |
1,980,161 |
1,607,409 |
1,514,270 |
1,528,745 |
1,804,060 | ||||||||||||||
|
46,361,880 |
45,669,366 |
45,016,055 |
44,490,195 |
46,133,073 | |||||||||||||||
|
Securities sold, not yet purchased |
73,606 |
21,183 |
15,799 |
1,662 |
26,735 | ||||||||||||||
|
Federal funds purchased and security repurchase agreements |
266,742 |
252,591 |
240,816 |
325,107 |
320,478 | ||||||||||||||
|
Other short-term borrowings |
— |
— |
— |
— |
5,409 | ||||||||||||||
|
Long-term debt |
2,273,575 |
2,304,301 |
2,173,176 |
2,352,569 |
2,337,113 | ||||||||||||||
|
Reserve for unfunded lending commitments |
89,705 |
84,147 |
104,082 |
100,455 |
106,809 | ||||||||||||||
|
Other liabilities |
501,056 |
523,915 |
494,280 |
489,923 |
533,660 | ||||||||||||||
|
Total liabilities |
49,566,564 |
48,855,503 |
48,044,208 |
47,759,911 |
49,463,277 | ||||||||||||||
|
Shareholders' equity: |
|||||||||||||||||||
|
Preferred stock, without par value, authorized 4,400,000 shares |
1,003,970 |
1,003,970 |
1,728,659 |
1,301,289 |
1,128,302 | ||||||||||||||
|
Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 184,677,696, 184,600,005, 184,436,656, 184,246,471, and 184,199,198 shares |
4,179,024 |
4,172,887 |
4,167,828 |
4,170,888 |
4,166,109 | ||||||||||||||
|
Retained earnings |
1,473,670 |
1,540,455 |
1,338,401 |
1,290,131 |
1,203,815 | ||||||||||||||
|
Accumulated other comprehensive income (loss) |
(192,101) |
(384,503) |
(374,556) |
(406,903) |
(446,157) | ||||||||||||||
|
Controlling interest shareholders' equity |
6,464,563 |
6,332,809 |
6,860,332 |
6,355,405 |
6,052,069 | ||||||||||||||
|
Noncontrolling interests |
— |
— |
— |
(4,752) |
(3,428) | ||||||||||||||
|
Total shareholders' equity |
6,464,563 |
6,332,809 |
6,860,332 |
6,350,653 |
6,048,641 | ||||||||||||||
|
$ 56,031,127 |
$ 55,188,312 |
$ 54,904,540 |
$ 54,110,564 |
$ 55,511,918 | |||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
(In thousands, except per share amounts) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||
|
Interest income: |
|||||||||||||||||||
|
Interest and fees on loans |
$ 458,493 |
$ 442,366 |
$ 460,308 |
$ 453,433 |
$ 462,002 | ||||||||||||||
|
Interest on money market investments |
5,985 |
6,175 |
5,764 |
5,439 |
6,004 | ||||||||||||||
|
Interest on securities: |
|||||||||||||||||||
|
Held-to-maturity |
7,721 |
7,739 |
7,846 |
7,974 |
8,130 | ||||||||||||||
|
Available-for-sale |
17,450 |
16,917 |
19,028 |
17,712 |
21,971 | ||||||||||||||
|
Trading account |
368 |
210 |
287 |
190 |
150 | ||||||||||||||
|
Total interest income |
490,017 |
473,407 |
493,233 |
484,748 |
498,257 | ||||||||||||||
|
Interest expense: |
|||||||||||||||||||
|
Interest on deposits |
13,622 |
14,506 |
15,143 |
15,642 |
16,861 | ||||||||||||||
|
Interest on short-term borrowings |
72 |
71 |
78 |
92 |
178 | ||||||||||||||
|
Interest on long-term debt |
44,288 |
43,309 |
47,355 |
50,899 |
51,261 | ||||||||||||||
|
Total interest expense |
57,982 |
57,886 |
62,576 |
66,633 |
68,300 | ||||||||||||||
|
Net interest income |
432,035 |
415,521 |
430,657 |
418,115 |
429,957 | ||||||||||||||
|
Provision for loan losses |
(30,538) |
(5,573) |
(21,990) |
(29,035) |
(10,401) | ||||||||||||||
|
Net interest income after provision for loan losses |
462,573 |
421,094 |
452,647 |
447,150 |
440,358 | ||||||||||||||
|
Noninterest income: |
|||||||||||||||||||
|
Service charges and fees on deposit accounts |
43,729 |
44,701 |
44,329 |
43,580 |
44,492 | ||||||||||||||
|
Other service charges, commissions and fees |
46,877 |
45,977 |
45,888 |
42,731 |
46,497 | ||||||||||||||
|
Trust and wealth management income |
8,067 |
7,120 |
7,732 |
6,994 |
7,450 | ||||||||||||||
|
Capital markets and foreign exchange |
6,516 |
7,309 |
6,740 |
7,486 |
7,708 | ||||||||||||||
|
Dividends and other investment income |
9,898 |
12,101 |
11,339 |
12,724 |
13,117 | ||||||||||||||
|
Loan sales and servicing income |
5,155 |
8,464 |
10,723 |
10,951 |
10,595 | ||||||||||||||
|
Fair value and nonhedge derivative loss |
(5,347) |
(4,403) |
(2,957) |
(5,445) |
(4,778) | ||||||||||||||
|
Equity securities gains (losses), net |
314 |
3,165 |
2,209 |
2,832 |
(682) | ||||||||||||||
|
Fixed income securities gains (losses), net |
(6,624) |
1,580 |
(1,153) |
3,299 |
10,259 | ||||||||||||||
|
Impairment losses on investment securities: |
|||||||||||||||||||
|
Impairment losses on investment securities |
(141,733) |
(10,470) |
(4,910) |
(31,493) |
(120,082) | ||||||||||||||
|
Noncredit-related losses on securities not expected to be sold |
— |
1,403 |
693 |
21,376 |
36,274 | ||||||||||||||
|
Net impairment losses on investment securities |
(141,733) |
(9,067) |
(4,217) |
(10,117) |
(83,808) | ||||||||||||||
|
Other |
1,998 |
5,243 |
4,515 |
6,184 |
3,309 | ||||||||||||||
|
Total noninterest income (loss) |
(31,150) |
122,190 |
125,148 |
121,219 |
54,159 | ||||||||||||||
|
Noninterest expense: |
|||||||||||||||||||
|
Salaries and employee benefits |
226,616 |
229,185 |
227,328 |
229,789 |
220,039 | ||||||||||||||
|
Occupancy, net |
28,733 |
28,230 |
27,951 |
27,389 |
28,226 | ||||||||||||||
|
Equipment, software and furniture |
27,450 |
26,560 |
26,545 |
26,074 |
27,774 | ||||||||||||||
|
Other real estate expense |
(1,024) |
(831) |
1,590 |
1,977 |
5,266 | ||||||||||||||
|
Credit related expense |
6,509 |
7,265 |
9,397 |
10,482 |
11,302 | ||||||||||||||
|
Provision for unfunded lending commitments |
5,558 |
(19,935) |
3,627 |
(6,354) |
959 | ||||||||||||||
|
Professional and legal services |
23,886 |
16,462 |
17,149 |
10,471 |
15,717 | ||||||||||||||
|
Advertising |
5,571 |
6,091 |
5,807 |
5,893 |
5,969 | ||||||||||||||
|
FDIC premiums |
8,789 |
9,395 |
10,124 |
9,711 |
10,760 | ||||||||||||||
|
Amortization of core deposit and other intangibles |
3,224 |
3,570 |
3,762 |
3,819 |
4,216 | ||||||||||||||
|
Debt extinguishment cost |
79,910 |
— |
40,282 |
— |
— | ||||||||||||||
|
Other |
79,528 |
64,671 |
78,116 |
78,097 |
76,786 | ||||||||||||||
|
Total noninterest expense |
494,750 |
370,663 |
451,678 |
397,348 |
407,014 | ||||||||||||||
|
Income (loss) before income taxes |
(63,327) |
172,621 |
126,117 |
171,021 |
87,503 | ||||||||||||||
|
Income taxes (benefit) |
(21,855) |
61,107 |
43,091 |
60,634 |
29,817 | ||||||||||||||
|
Net income (loss) |
(41,472) |
111,514 |
83,026 |
110,387 |
57,686 | ||||||||||||||
|
Net loss applicable to noncontrolling interests |
— |
— |
— |
(336) |
(566) | ||||||||||||||
|
Net income (loss) applicable to controlling interest |
(41,472) |
111,514 |
83,026 |
110,723 |
58,252 | ||||||||||||||
|
Preferred stock dividends |
(17,965) |
(27,507) |
(27,641) |
(22,399) |
(22,647) | ||||||||||||||
|
Preferred stock redemption |
— |
125,700 |
— |
— |
— | ||||||||||||||
|
Net earnings (loss) applicable to common shareholders |
$ (59,437) |
$ 209,707 |
$ 55,385 |
$ 88,324 |
$ 35,605 | ||||||||||||||
|
Weighted average common shares outstanding during the period: |
|||||||||||||||||||
|
Basic shares |
184,209 |
184,112 |
183,647 |
183.396 |
183,300 | ||||||||||||||
|
Diluted shares |
184,209 |
184,742 |
184,062 |
183,655 |
183,456 | ||||||||||||||
|
Net earnings (loss) per common share: |
|||||||||||||||||||
|
Basic |
$ (0.32) |
$ 1.13 |
$ 0.30 |
$ 0.48 |
$ 0.19 | ||||||||||||||
|
Diluted |
(0.32) |
1.12 |
0.30 |
0.48 |
0.19 | ||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME | |||||||
|
Year Ended | |||||||
|
(In thousands, except per share amounts) |
December 31, 2013 |
December 31, 2012 | |||||
|
(Unaudited) |
|||||||
|
Interest income: |
|||||||
|
Interest and fees on loans |
1,814,600 |
1,889,884 | |||||
|
Interest on money market investments |
23,363 |
21,080 | |||||
|
Interest on securities: |
|||||||
|
Held-to-maturity |
31,280 |
34,751 | |||||
|
Available-for-sale |
71,107 |
92,261 | |||||
|
Trading account |
1,055 |
746 | |||||
|
Total interest income |
1,941,405 |
2,038,722 | |||||
|
Interest expense: |
|||||||
|
Interest on deposits |
58,913 |
80,146 | |||||
|
Interest on short-term borrowings |
313 |
1,406 | |||||
|
Interest on long-term debt |
185,851 |
225,230 | |||||
|
Total interest expense |
245,077 |
306,782 | |||||
|
Net interest income |
1,696,328 |
1,731,940 | |||||
|
Provision for loan losses |
(87,136) |
14,227 | |||||
|
Net interest income after provision for loan losses |
1,783,464 |
1,717,713 | |||||
|
Noninterest income: |
|||||||
|
Service charges and fees on deposit accounts |
176,339 |
176,401 | |||||
|
Other service charges, commissions and fees |
181,473 |
174,420 | |||||
|
Trust and wealth management income |
29,913 |
28,402 | |||||
|
Capital markets and foreign exchange |
28,051 |
26,810 | |||||
|
Dividends and other investment income |
46,062 |
55,825 | |||||
|
Loan sales and servicing income |
35,293 |
39,929 | |||||
|
Fair value and nonhedge derivative loss |
(18,152) |
(21,782) | |||||
|
Equity securities gains, net |
8,520 |
11,253 | |||||
|
Fixed income securities gains (losses), net |
(2,898) |
19,544 | |||||
|
Impairment losses on investment securities: |
|||||||
|
Impairment losses on investment securities |
(188,606) |
(166,257) | |||||
|
Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income) |
23,472 |
62,196 | |||||
|
Net impairment losses on investment securities |
(165,134) |
(104,061) | |||||
|
Other |
17,940 |
13,129 | |||||
|
Total noninterest income |
337,407 |
419,870 | |||||
|
Noninterest expense: |
|||||||
|
Salaries and employee benefits |
912,918 |
885,661 | |||||
|
Occupancy, net |
112,303 |
112,947 | |||||
|
Equipment, software and furniture |
106,629 |
108,990 | |||||
|
Other real estate expense |
1,712 |
19,723 | |||||
|
Credit related expense |
33,653 |
50,518 | |||||
|
Provision for unfunded lending commitments |
(17,104) |
4,387 | |||||
|
Professional and legal services |
67,968 |
52,509 | |||||
|
Advertising |
23,362 |
25,720 | |||||
|
FDIC premiums |
38,019 |
43,401 | |||||
|
Amortization of core deposit and other intangibles |
14,375 |
17,010 | |||||
|
Debt extinguishment cost |
120,192 |
— | |||||
|
Other |
300,412 |
275,151 | |||||
|
Total noninterest expense |
1,714,439 |
1,596,017 | |||||
|
Income before income taxes |
406,432 |
541,566 | |||||
|
Income taxes |
142,977 |
193,416 | |||||
|
Net income |
263,455 |
348,150 | |||||
|
Net loss applicable to noncontrolling interests |
(336) |
(1,366) | |||||
|
Net income applicable to controlling interest |
263,791 |
349,516 | |||||
|
Preferred stock dividends |
(95,512) |
(170,885) | |||||
|
Preferred stock redemption |
125,700 |
— | |||||
|
Net earnings applicable to common shareholders |
$ 293,979 |
$ 178,631 | |||||
|
Weighted average common shares outstanding during the year: |
|||||||
|
Basic shares |
183,844 |
183,081 | |||||
|
Diluted shares |
184,297 |
183,236 | |||||
|
Net earnings per common share: |
|||||||
|
Basic |
$ 1.58 |
$ 0.97 | |||||
|
Diluted |
1.58 |
0.97 | |||||
|
Loan Balances by Portfolio Type (Unaudited) | |||||||||||||||||||||||||||||
|
(In millions) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||||||||||||
|
Commercial: |
|||||||||||||||||||||||||||||
|
Commercial and industrial |
$ 12,481 |
$ 11,904 |
$ 11,899 |
$ 11,504 |
$ 11,257 | ||||||||||||||||||||||||
|
Leasing |
388 |
375 |
388 |
390 |
423 | ||||||||||||||||||||||||
|
Owner occupied |
7,437 |
7,379 |
7,394 |
7,501 |
7,589 | ||||||||||||||||||||||||
|
Municipal |
449 |
449 |
454 |
484 |
494 | ||||||||||||||||||||||||
|
Total commercial |
20,755 |
20,107 |
20,135 |
19,879 |
19,763 | ||||||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||||||||||
|
Construction and land development |
2,183 |
2,240 |
2,191 |
2,039 |
1,939 | ||||||||||||||||||||||||
|
Term |
8,006 |
7,929 |
7,971 |
8,012 |
8,063 | ||||||||||||||||||||||||
|
Total commercial real estate |
10,189 |
10,169 |
10,162 |
10,051 |
10,002 | ||||||||||||||||||||||||
|
Consumer: |
|||||||||||||||||||||||||||||
|
Home equity credit line |
2,133 |
2,124 |
2,124 |
2,125 |
2,178 | ||||||||||||||||||||||||
|
1-4 family residential |
4,737 |
4,637 |
4,486 |
4,408 |
4,350 | ||||||||||||||||||||||||
|
Construction and other consumer real estate |
325 |
321 |
322 |
320 |
321 | ||||||||||||||||||||||||
|
Bankcard and other revolving plans |
356 |
332 |
315 |
293 |
307 | ||||||||||||||||||||||||
|
Other |
198 |
208 |
212 |
208 |
216 | ||||||||||||||||||||||||
|
Total consumer |
7,749 |
7,622 |
7,459 |
7,354 |
7,372 | ||||||||||||||||||||||||
|
FDIC-supported loans 1 |
350 |
375 |
432 |
478 |
528 | ||||||||||||||||||||||||
|
Total loans |
$ 39,043 |
$ 38,273 |
$ 38,188 |
$ 37,762 |
$ 37,665 | ||||||||||||||||||||||||
|
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) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||||||||||||
|
Balance sheet: |
|||||||||||||||||||||||||||||
|
Change in assets from reestimation of cash flows – |
|||||||||||||||||||||||||||||
|
FDIC-supported loans |
$ 28,502 |
$ 15,018 |
$ 28,424 |
$ 18,977 |
$ 12,970 | ||||||||||||||||||||||||
|
FDIC indemnification asset (included in other assets) |
(19,934) |
(12,965) |
(21,845) |
(20,288) |
(10,610) | ||||||||||||||||||||||||
|
Balance at end of period: |
|||||||||||||||||||||||||||||
|
FDIC-supported loans |
350,271 |
374,861 |
431,935 |
477,725 |
528,241 | ||||||||||||||||||||||||
|
FDIC indemnification asset (included in other assets) |
26,411 |
41,771 |
51,297 |
71,100 |
90,074 | ||||||||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||||||||||||
|
(In thousands) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||||||||||||
|
Statement of income: |
|||||||||||||||||||||||||||||
|
Interest income: |
|||||||||||||||||||||||||||||
|
Interest and fees on loans |
$ 28,502 |
$ 15,018 |
$ 28,424 |
$ 18,977 |
$ 12,970 | ||||||||||||||||||||||||
|
Noninterest expense: |
|||||||||||||||||||||||||||||
|
Other noninterest expense |
19,934 |
12,965 |
21,845 |
20,288 |
10,610 | ||||||||||||||||||||||||
|
Net increase (decrease) in pretax income |
$ 8,568 |
$ 2,053 |
$ 6,579 |
$ (1,311) |
$ 2,360 | ||||||||||||||||||||||||
|
Nonperforming Lending-Related Assets (Unaudited) |
|||||||||
|
(Amounts in thousands) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||
|
Nonaccrual loans |
$ 402,219 |
$ 466,795 |
$ 515,708 |
$ 589,221 |
$ 630,810 | ||||
|
Other real estate owned |
42,817 |
58,295 |
70,031 |
80,701 |
90,269 | ||||
|
Nonperforming lending-related assets, excluding FDIC-supported assets |
445,036 |
525,090 |
585,739 |
669,922 |
721,079 | ||||
|
FDIC-supported nonaccrual loans |
4,394 |
4,744 |
5,256 |
4,927 |
17,343 | ||||
|
FDIC-supported other real estate owned |
3,288 |
8,086 |
10,758 |
9,203 |
7,882 | ||||
|
FDIC-supported nonperforming assets |
7,682 |
12,830 |
16,014 |
14,130 |
25,225 | ||||
|
Total nonperforming lending-related assets |
$ 452,718 |
$ 537,920 |
$ 601,753 |
$ 684,052 |
$ 746,304 | ||||
|
Ratio of nonperforming lending-related assets to |
1.15% |
1.40% |
1.57% |
1.80% |
1.96% | ||||
|
Accruing loans past due 90 days or more, |
$ 9,957 |
$ 9,398 |
$ 10,685 |
$ 12,708 |
$ 9,730 | ||||
|
Accruing FDIC-supported loans past due 90 days or |
30,391 |
22,450 |
33,410 |
47,208 |
52,033 | ||||
|
Ratio of accruing loans past due 90 days or more to |
0.10% |
0.08% |
0.11% |
0.16% |
0.16% | ||||
|
Nonaccrual loans and accruing loans past due 90 days |
$ 446,961 |
$ 503,387 |
$ 565,059 |
$ 654,064 |
$ 709,916 | ||||
|
Ratio of nonaccrual loans and accruing loans past due |
1.14% |
1.31% |
1.47% |
1.72% |
1.87% | ||||
|
Accruing loans past due 30 - 89 days, excluding |
$ 104,760 |
$ 85,128 |
$ 103,075 |
$ 155,896 |
$ 185,422 | ||||
|
Accruing FDIC-supported loans past due 30 - 89 days |
11,752 |
10,983 |
6,522 |
11,571 |
11,924 | ||||
|
Restructured loans included in nonaccrual loans |
136,135 |
166,573 |
162,496 |
193,975 |
215,476 | ||||
|
Restructured loans on accrual |
345,299 |
384,793 |
385,428 |
416,181 |
407,026 | ||||
|
Classified loans, excluding FDIC-supported loans |
1,240,148 |
1,432,806 |
1,639,206 |
1,737,178 |
1,767,460 | ||||
|
1 Includes loans held for sale. |
|||||||||
|
Allowance for Credit Losses (Unaudited) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
(Amounts in thousands) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||
|
Allowance for Loan Losses |
|||||||||||||||||||
|
Balance at beginning of period |
$ 797,523 |
$ 813,912 |
$ 841,781 |
$ 896,087 |
$ 927,068 | ||||||||||||||
|
Add: |
|||||||||||||||||||
|
Provision for losses |
(30,538) |
(5,573) |
(21,990) |
(29,035) |
(10,401) | ||||||||||||||
|
Adjustment for FDIC-supported loans |
(1,481) |
(2,118) |
(209) |
(7,429) |
(1,721) | ||||||||||||||
|
Deduct: |
|||||||||||||||||||
|
Gross loan and lease charge-offs |
(37,405) |
(22,826) |
(35,099) |
(35,467) |
(54,709) | ||||||||||||||
|
Recoveries |
18,192 |
14,128 |
29,429 |
17,625 |
35,850 | ||||||||||||||
|
Net loan and lease charge-offs |
(19,213) |
(8,698) |
(5,670) |
(17,842) |
(18,859) | ||||||||||||||
|
Balance at end of period |
$ 746,291 |
$ 797,523 |
$ 813,912 |
$ 841,781 |
$ 896,087 | ||||||||||||||
|
Ratio of allowance for loan losses to loans and |
1.91% |
2.08% |
2.13% |
2.23% |
2.38% | ||||||||||||||
|
Ratio of allowance for loan losses to nonperforming |
183.54% |
169.13% |
156.23% |
141.68% |
138.25% | ||||||||||||||
|
Annualized ratio of net loan and lease charge-offs to |
0.20% |
0.09% |
0.06% |
0.19% |
0.20% | ||||||||||||||
|
Reserve for Unfunded Lending Commitments |
|||||||||||||||||||
|
Balance at beginning of period |
$ 84,147 |
$ 104,082 |
$ 100,455 |
$ 106,809 |
$ 105,850 | ||||||||||||||
|
Provision charged (credited) to earnings |
5,558 |
(19,935) |
3,627 |
(6,354) |
959 | ||||||||||||||
|
Balance at end of period |
$ 89,705 |
$ 84,147 |
$ 104,082 |
$ 100,455 |
$ 106,809 | ||||||||||||||
|
Total Allowance for Credit Losses |
|||||||||||||||||||
|
Allowance for loan losses |
$ 746,291 |
$ 797,523 |
$ 813,912 |
$ 841,781 |
$ 896,087 | ||||||||||||||
|
Reserve for unfunded lending commitments |
89,705 |
84,147 |
104,082 |
100,455 |
106,809 | ||||||||||||||
|
Total allowance for credit losses |
$ 835,996 |
$ 881,670 |
$ 917,994 |
$ 942,236 |
$ 1,002,896 | ||||||||||||||
|
Ratio of total allowance for credit losses to loans and |
2.14% |
2.30% |
2.40% |
2.50% |
2.66% | ||||||||||||||
|
Nonaccrual Loans by Portfolio Type (Excluding FDIC-Supported Loans) (Unaudited) | |||||||||||||||||||||||||||||
|
(In millions) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||||||||||||
|
Commercial: |
|||||||||||||||||||||||||||||
|
Commercial and industrial |
$ 98 |
$ 100 |
$ 94 |
$ 100 |
$ 91 | ||||||||||||||||||||||||
|
Leasing |
1 |
1 |
1 |
1 |
1 | ||||||||||||||||||||||||
|
Owner occupied |
136 |
158 |
186 |
195 |
206 | ||||||||||||||||||||||||
|
Municipal |
10 |
10 |
9 |
9 |
9 | ||||||||||||||||||||||||
|
Total commercial |
245 |
269 |
290 |
305 |
307 | ||||||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||||||||||
|
Construction and land development |
29 |
65 |
70 |
93 |
108 | ||||||||||||||||||||||||
|
Term |
60 |
61 |
71 |
102 |
125 | ||||||||||||||||||||||||
|
Total commercial real estate |
89 |
126 |
141 |
195 |
233 | ||||||||||||||||||||||||
|
Consumer: |
|||||||||||||||||||||||||||||
|
Home equity credit line |
9 |
8 |
11 |
12 |
14 | ||||||||||||||||||||||||
|
1-4 family residential |
53 |
58 |
66 |
71 |
70 | ||||||||||||||||||||||||
|
Construction and other consumer real estate |
4 |
4 |
5 |
4 |
5 | ||||||||||||||||||||||||
|
Bankcard and other revolving plans |
1 |
1 |
2 |
1 |
1 | ||||||||||||||||||||||||
|
Other |
1 |
1 |
1 |
1 |
1 | ||||||||||||||||||||||||
|
Total consumer |
68 |
72 |
85 |
89 |
91 | ||||||||||||||||||||||||
|
Total nonaccrual loans |
$ 402 |
$ 467 |
$ 516 |
$ 589 |
$ 631 | ||||||||||||||||||||||||
|
Net Charge-Offs by Portfolio Type (Unaudited) | |||||||||||||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||||||||||||
|
(In millions) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||||||||||||
|
Commercial: |
|||||||||||||||||||||||||||||
|
Commercial and industrial |
$ 15 |
$ 2 |
$ 2 |
$ 5 |
$ (1) | ||||||||||||||||||||||||
|
Leasing |
— |
— |
— |
— |
2 | ||||||||||||||||||||||||
|
Owner occupied |
1 |
2 |
3 |
5 |
7 | ||||||||||||||||||||||||
|
Municipal |
— |
— |
— |
— |
— | ||||||||||||||||||||||||
|
Total commercial |
16 |
4 |
5 |
10 |
8 | ||||||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||||||||||
|
Construction and land development |
(3) |
(1) |
(3) |
(3) |
(7) | ||||||||||||||||||||||||
|
Term |
5 |
3 |
(2) |
5 |
7 | ||||||||||||||||||||||||
|
Total commercial real estate |
2 |
2 |
(5) |
2 |
— | ||||||||||||||||||||||||
|
Consumer: |
|||||||||||||||||||||||||||||
|
Home equity credit line |
— |
1 |
2 |
2 |
6 | ||||||||||||||||||||||||
|
1-4 family residential |
— |
1 |
3 |
3 |
4 | ||||||||||||||||||||||||
|
Construction and other consumer real estate |
— |
— |
1 |
(1) |
— | ||||||||||||||||||||||||
|
Bankcard and other revolving plans |
1 |
1 |
— |
2 |
1 | ||||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— | ||||||||||||||||||||||||
|
Total consumer loans |
1 |
3 |
6 |
6 |
11 | ||||||||||||||||||||||||
|
Total net charge-offs |
$ 19 |
$ 9 |
$ 6 |
$ 18 |
$ 19 | ||||||||||||||||||||||||
|
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) | |||||||||||||||||
|
Three Months Ended | |||||||||||||||||
|
December 31, 2013 |
September 30, 2013 |
June 30, 2013 | |||||||||||||||
|
(In thousands) |
Average |
Average |
Average |
Average |
Average |
Average | |||||||||||
|
ASSETS |
|||||||||||||||||
|
Money market investments |
$ |
9,154,232 |
0.26% |
$ |
9,454,131 |
0.26% |
$ |
8,652,403 |
0.27% | ||||||||
|
Securities: |
|||||||||||||||||
|
Held-to-maturity |
770,168 |
4.75% |
778,268 |
4.73% |
740,839 |
5.07% | |||||||||||
|
Available-for-sale |
3,230,152 |
2.17% |
3,071,039 |
2.22% |
3,090,910 |
2.50% | |||||||||||
|
Trading account |
43,063 |
3.39% |
25,959 |
3.21% |
36,296 |
3.17% | |||||||||||
|
Total securities |
4,043,383 |
2.68% |
3,875,266 |
2.73% |
3,868,045 |
3.00% | |||||||||||
|
Loans held for sale |
119,671 |
3.73% |
131,652 |
3.70% |
141,313 |
3.47% | |||||||||||
|
Loans 1: |
|||||||||||||||||
|
Loans and leases |
38,259,795 |
4.41% |
37,818,273 |
4.43% |
37,518,549 |
4.55% | |||||||||||
|
FDIC-supported loans |
363,982 |
36.88% |
405,316 |
20.52% |
452,849 |
31.22% | |||||||||||
|
Total loans |
38,623,777 |
4.72% |
38,223,589 |
4.60% |
37,971,398 |
4.87% | |||||||||||
|
Total interest-earning assets |
51,941,063 |
3.77% |
51,684,638 |
3.66% |
50,633,159 |
3.94% | |||||||||||
|
Cash and due from banks |
1,026,814 |
976,159 |
1,000,221 |
||||||||||||||
|
Allowance for loan losses |
(790,361) |
(810,290) |
(837,651) |
||||||||||||||
|
Goodwill |
1,014,129 |
1,014,129 |
1,014,129 |
||||||||||||||
|
Core deposit and other intangibles |
38,137 |
41,751 |
45,262 |
||||||||||||||
|
Other assets |
2,470,837 |
2,608,252 |
2,808,640 |
||||||||||||||
|
Total assets |
$ |
55,700,619 |
$ |
55,514,639 |
$ |
54,663,760 |
|||||||||||
|
LIABILITIES |
|||||||||||||||||
|
Interest-bearing deposits: |
|||||||||||||||||
|
Savings and money market |
$ |
22,972,978 |
0.16% |
$ |
22,982,998 |
0.17% |
$ |
22,871,040 |
0.18% | ||||||||
|
Time |
2,642,104 |
0.50% |
2,749,985 |
0.56% |
2,842,322 |
0.59% | |||||||||||
|
Foreign |
1,796,912 |
0.20% |
1,675,256 |
0.20% |
1,642,381 |
0.20% | |||||||||||
|
Total interest-bearing deposits |
27,411,994 |
0.20% |
27,408,239 |
0.21% |
27,355,743 |
0.22% | |||||||||||
|
Borrowed funds: |
|||||||||||||||||
|
Federal funds purchased and other short-term borrowings |
271,501 |
0.11% |
260,744 |
0.11% |
287,766 |
0.11% | |||||||||||
|
Long-term debt |
2,352,748 |
7.47% |
2,198,752 |
7.81% |
2,214,215 |
8.58% | |||||||||||
|
Total borrowed funds |
2,624,249 |
6.71% |
2,459,496 |
7.00% |
2,501,981 |
7.60% | |||||||||||
|
Total interest-bearing liabilities |
30,036,243 |
0.77% |
29,867,735 |
0.77% |
29,857,724 |
0.84% | |||||||||||
|
Noninterest-bearing deposits |
18,842,097 |
18,179,584 |
17,629,219 |
||||||||||||||
|
Other liabilities |
584,887 |
591,735 |
559,219 |
||||||||||||||
|
Total liabilities |
49,463,227 |
48,639,054 |
48,046,162 |
||||||||||||||
|
Shareholders' equity: |
|||||||||||||||||
|
Preferred equity |
1,003,970 |
1,685,512 |
1,518,823 |
||||||||||||||
|
Common equity |
5,233,422 |
5,190,073 |
5,102,082 |
||||||||||||||
|
Controlling interest shareholders' equity |
6,237,392 |
6,875,585 |
6,620,905 |
||||||||||||||
|
Noncontrolling interests |
— |
— |
(3,307) |
||||||||||||||
|
Total shareholders' equity |
6,237,392 |
6,875,585 |
6,617,598 |
||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
55,700,619 |
$ |
55,514,639 |
$ |
54,663,760 |
|||||||||||
|
Spread on average interest-bearing funds |
3.00% |
2.89% |
3.10% | ||||||||||||||
|
Net yield on interest-earning assets |
3.33% |
3.22% |
3.44% | ||||||||||||||
|
1 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. | |||||||||||||||||
|
GAAP to Non-GAAP Reconciliation (Unaudited) | |||||||||||||||||||
|
Tangible Return on Average Tangible Common Equity | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
(Amounts in thousands) |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 | ||||||||||||||
|
Net earnings (loss) applicable to common shareholders |
$ (59,437) |
$ 209,707 |
$ 55,385 |
$ 88,324 |
$ 35,605 | ||||||||||||||
|
Adjustments, net of tax: |
|||||||||||||||||||
|
Impairment loss on goodwill |
— |
— |
— |
— |
583 | ||||||||||||||
|
Amortization of core deposit and other intangibles |
2,046 |
2,268 |
2,391 |
2,425 |
2,677 | ||||||||||||||
|
Net earnings (loss) applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a) |
$ (57,391) |
$ 211,975 |
$ 57,776 |
$ 90,749 |
$ 38,865 | ||||||||||||||
|
Average common equity (GAAP) |
$ 5,233,422 |
$ 5,190,073 |
$ 5,102,082 |
$ 4,990,317 |
$ 4,862,972 | ||||||||||||||
|
Average goodwill |
(1,014,129) |
(1,014,129) |
(1,014,129) |
(1,014,129) |
(1,014,986) | ||||||||||||||
|
Average core deposit and other intangibles |
(38,137) |
(41,751) |
(45,262) |
(49,069) |
(53,083) | ||||||||||||||
|
Average tangible common equity (non-GAAP) (b) |
$ 4,181,156 |
$ 4,134,193 |
$ 4,042,691 |
$ 3,927,119 |
$ 3,794,903 | ||||||||||||||
|
Number of days in quarter (c) |
92 |
92 |
91 |
90 |
92 | ||||||||||||||
|
Number of days in year (d) |
365 |
365 |
365 |
365 |
366 | ||||||||||||||
|
Tangible return on average tangible common equity (non-GAAP) (a/b/c*d) |
(5.45)% |
20.34% |
5.73% |
9.37% |
4.07% | ||||||||||||||
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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