Zions Bancorporation Reports Earnings Of $0.48 Per Diluted Common Share For First Quarter 2013
SALT LAKE CITY, April 22, 2013 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) ("Zions" or "the Company") today reported first quarter net earnings applicable to common shareholders of $88.3 million or $0.48 per diluted common share, compared to $35.6 million or $0.19 per diluted share for the fourth quarter of 2012, and $25.5 million or $0.14 per diluted share for the first quarter of 2012.
First Quarter 2013 Highlights
- Loans and leases, excluding FDIC-supported loans, increased $148 million to $37.3 billion at March 31, 2013. Average loans and leases, excluding FDIC-supported loans, increased $413 million.
- Gross loan and lease charge-offs declined 35% compared to the fourth quarter, while net loan and lease charge-offs declined 5%. Other improvements in credit quality were generally consistent with prior quarters.
- The continued improvement in credit quality resulted in first quarter negative provisions of $29.0 million for loan losses and $6.4 million for unfunded lending commitments.
- Tangible common equity per common share improved $0.72 to $21.67 from $20.95 in the fourth quarter, driven by increased retained earnings and improvement in accumulated other comprehensive income ("AOCI").
- Net interest income decreased compared to the prior quarter due to reduced day count and loan interest rates resetting at lower levels.
"We are again pleased with our improvement in credit quality, which we expect to continue, and by somewhat better loan growth over the past couple of quarters," said Harris H. Simmons, chairman and chief executive officer, "but we see some renewed signs of new loan pricing pressure. However, we do expect continued bottom line improvement as we take numerous actions over the next several quarters to reduce the cost of our capital and debt financing."
Loans
Loans and leases, excluding loans held for sale and FDIC-supported loans, increased $148 million on a net basis to $37.3 billion at March 31, 2013, compared to $37.1 billion at December 31, 2012. The increases were predominantly in commercial and industrial, construction and land development, and 1-4 family residential loans primarily in Texas and California. Decreases of $258 million primarily in commercial owner occupied, term commercial real estate, and home equity credit line loans partially offset increases in other loan categories. Average loans and leases, excluding FDIC-supported loans, increased $413 million to $37.1 billion during the first quarter of 2013, compared to $36.7 billion during the fourth quarter of 2012.
Deposits
Average total deposits for the first quarter of 2013 decreased $0.5 billion, or 1%, to $44.4 billion, compared to $44.9 billion for the fourth quarter of 2012. Average noninterest-bearing demand deposits declined $0.7 billion, to $17.2 billion in the first quarter from $17.9 billion in the fourth quarter, while average interest-bearing deposits increased $0.2 billion, to $27.2 billion from $27.0 billion quarter over quarter. The ratio of average loans excluding loans held for sale to average deposits was 85% at March 31, 2013, compared to 83% at December 31, 2012.
Debt and Shareholders' Equity
As previously reported, on January 31, 2013, the Company sold $171.8 million of its Series G Fixed/Floating Rate Non-Cumulative Perpetual Preferred Stock. Dividends are payable from the issuance date to March 14, 2023 at an annual rate of 6.30%. Beginning March 15, 2023 (date of earliest redemption) to maturity, dividends will be payable at an annual floating rate equal to three-month LIBOR plus 4.24%. Net of commissions and fees, the proceeds added $168.8 million to shareholders' equity and Tier 1 capital.
The tangible common equity ratio was 7.53% at March 31, 2013, compared to 7.09% at December 31, 2012. The increase was primarily due to increased retained earnings this quarter, a $39 million improvement in AOCI which resulted primarily from increased fair values on collateralized debt obligation ("CDO") securities, and lower cash-related balances. The estimated common equity Tier 1 capital ratio was 10.06% at March 31, 2013, compared to 9.80% at December 31, 2012.
As previously announced, on May 3, 2013, Zions Capital Trust B will redeem all of its 8.0% outstanding trust preferred securities, or 11.4 million shares, at 100% of their $25 per share liquidation amount for a total of $285 million.
Net Interest Income
Net interest income decreased to $418 million for the first quarter of 2013, compared to $430 million for the fourth quarter of 2012. The net interest margin decreased to 3.44% in the first quarter of 2013, compared to 3.47% in the fourth quarter of 2012. The major drivers of these declines were loan rate resets, expiration of in-the-money floors on loans, reduced day count (for net interest income), and lower yields on available-for-sale investment securities. The cost of interest-bearing deposits continued to decline and was 0.23% in the first quarter compared to 0.25% in the fourth quarter.
Noninterest Income
Noninterest income for the first quarter of 2013 was $121.2 million, compared to $54.2 million for the fourth quarter of 2012. The increase was primarily due to the reduced amount of other-than-temporary impairment ("OTTI") on CDO securities taken this quarter compared to the previous quarter.
CDO Investment Securities
During the first quarter of 2013, the Company recognized credit-related OTTI on CDOs of $10.1 million or $0.03 per diluted share, compared to $83.8 million or $0.28 per diluted share during the fourth quarter of 2012. Approximately $6.2 million of the OTTI this quarter was related to an event of default on one CDO. The higher amount of OTTI in the previous quarter resulted from increases to our assumed probabilities of default, primarily on bank issuers deferring payment of trust preferred interest, and to our near-term prepayment assumptions for some banks. Gains from cash principal payments on CDOs previously written down were $3.3 million in the first quarter of 2013, compared to $10.2 million in the fourth quarter of 2012.
The following table provides fair value and other information on the CDOs, stratified into performing tranches without credit impairment and nonperforming tranches at March 31, 2013:
|
March 31, 2013 |
|||||||||||||||||||||||||||||||||||
|
Net unrealized losses recognized in AOCI 1 |
% of carrying value to par |
||||||||||||||||||||||||||||||||||
|
(Amounts in millions) |
No. of tranches |
Par |
Amortized |
Carrying |
Weighted average discount rate 2 |
March 31, |
December 31, |
Change | |||||||||||||||||||||||||||
|
Performing CDOs |
|||||||||||||||||||||||||||||||||||
|
Predominantly bank CDOs |
27 |
$ |
774 |
$ |
694 |
$ |
560 |
$ |
(134) |
5.9% |
72% |
66% |
6% | ||||||||||||||||||||||
|
Insurance-only CDOs |
22 |
447 |
443 |
331 |
(112) |
7.9% |
74% |
72% |
2% | ||||||||||||||||||||||||||
|
Other CDOs |
6 |
51 |
40 |
37 |
(3) |
9.6% |
73% |
70% |
3% | ||||||||||||||||||||||||||
|
Total performing CDOs |
55 |
1,272 |
1,177 |
928 |
(249) |
6.7% |
73% |
68% |
5% | ||||||||||||||||||||||||||
|
Nonperforming CDOs 3 |
|||||||||||||||||||||||||||||||||||
|
CDOs credit impaired prior to last 12 months |
19 |
394 |
275 |
126 |
(149) |
10.1% |
32% |
30% |
2% | ||||||||||||||||||||||||||
|
CDOs credit impaired during last 12 months |
39 |
732 |
432 |
179 |
(253) |
11.4% |
24% |
25% |
(1)% | ||||||||||||||||||||||||||
|
Total nonperforming CDOs |
58 |
1,126 |
707 |
305 |
(402) |
11.0% |
27% |
26% |
1% | ||||||||||||||||||||||||||
|
Total CDOs |
113 |
$ |
2,398 |
$ |
1,884 |
$ |
1,233 |
$ |
(651) |
8.7% |
51% |
49% |
2% | ||||||||||||||||||||||
|
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 AOCI improved to $651 million in the first quarter of 2013 from $718 million in the fourth quarter of 2012 due to fair value increases that occurred primarily in senior tranches and were driven by continued improvement in credit spreads.
Noninterest Expense
Noninterest expense for the first quarter of 2013 was $397.3 million compared to $407.0 million for the fourth quarter of 2012. The decrease was due primarily to a $7.3 million reduction in the provision for unfunded lending commitments, and to reduced levels of other real estate expense and legal and professional services compared to the fourth quarter. These were partially offset by increased salaries and employee benefits due to increased payroll taxes and variable compensation accruals. Other noninterest expense was approximately $9.7 million higher this quarter than the previous quarter due to increased amortization of the FDIC indemnification asset from loan prepayments.
Asset Quality
Gross loan and lease charge-offs declined 35% to $35.5 million in the first quarter of 2013, compared to $54.7 million in the fourth quarter of 2012; gross charge-offs declined 56% from the first quarter of 2012. Net loan and lease charge-offs decreased 5% in the first quarter of 2013, compared to the fourth quarter of 2012. Net charge-offs declined primarily in consumer home equity credit line and term commercial real estate loans.
Nonperforming lending-related assets declined 8% to $684 million at March 31, 2013 from $746 million at December 31, 2012. Nonaccrual loans declined 8% to $594 million at March 31, 2013 from $648 million at December 31, 2012. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 1.80% at March 31, 2013, compared to 1.96% at December 31, 2012.
Classified loans, excluding FDIC-supported loans, decreased approximately 2% to $1.74 billion at March 31, 2013, compared to $1.77 billion at December 31, 2012. Approximately 80% of classified loans were current as to principal and interest for the first quarter of 2013, compared to 79% for the fourth quarter of 2012, and 73% for the first quarter of 2012.
The provision (credit) for loan losses was $(29.0) million for the first quarter of 2013, compared to $(10.4) million for the fourth quarter of 2012. The decline in the provision was driven by the continued improvement in credit quality, including continued improvement in loss severity from classified loans. The allowance for credit losses was $0.9 billion, or 2.50% of loans and leases at March 31, 2013, compared to $1.0 billion, or 2.66% of loans and leases at December 31, 2012.
Conference Call
Zions will host a conference call to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 22, 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 24666556, 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, April 22, 2013, until midnight ET on Monday, April 29, 2013, by dialing 855-859-2056 (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 480 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 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 | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
(In thousands, except share, per share, and ratio data) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
PER COMMON SHARE |
|||||||||||||||||||
|
Dividends |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 | |||||||||
|
Book value per common share 1 |
27.43 |
26.73 |
26.05 |
25.48 |
25.25 | ||||||||||||||
|
Tangible common equity per common share 1 |
21.67 |
20.95 |
20.24 |
19.65 |
19.39 | ||||||||||||||
|
SELECTED RATIOS |
|||||||||||||||||||
|
Return on average assets |
0.83% |
0.43% |
0.82% |
0.70% |
0.69% | ||||||||||||||
|
Return on average common equity |
7.18% |
2.91% |
5.21% |
4.71% |
2.21% | ||||||||||||||
|
Tangible return on average tangible common equity |
9.37% |
4.07% |
7.02% |
6.41% |
3.18% | ||||||||||||||
|
Net interest margin |
3.44% |
3.47% |
3.58% |
3.56% |
3.69% | ||||||||||||||
|
Capital Ratios |
|||||||||||||||||||
|
Tangible common equity ratio 1 |
7.53% |
7.09% |
7.17% |
6.91% |
6.89% | ||||||||||||||
|
Tangible equity ratio 1 |
9.97% |
9.15% |
9.32% |
10.35% |
10.24% | ||||||||||||||
|
Average equity to average assets |
11.54% |
11.03% |
12.22% |
12.37% |
13.31% | ||||||||||||||
|
Risk-Based Capital Ratios 1,2 |
|||||||||||||||||||
|
Common equity Tier 1 capital |
10.06% |
9.80% |
9.86% |
9.78% |
9.71% | ||||||||||||||
|
Tier 1 leverage |
11.56% |
10.96% |
11.05% |
12.31% |
12.17% | ||||||||||||||
|
Tier 1 risk-based capital |
14.04% |
13.38% |
13.49% |
15.03% |
14.83% | ||||||||||||||
|
Total risk-based capital |
15.72% |
15.05% |
15.25% |
16.89% |
16.76% | ||||||||||||||
|
Taxable-equivalent net interest income |
$ |
422,252 |
$ |
434,252 |
$ |
442,595 |
$ |
430,967 |
$ |
442,340 | |||||||||
|
Weighted average common and common-equivalent shares outstanding |
183,655,129 |
183,456,109 |
183,382,650 |
183,136,631 |
182,963,828 | ||||||||||||||
|
Common shares outstanding 1 |
184,246,471 |
184,199,198 |
184,156,402 |
184,117,522 |
184,228,178 | ||||||||||||||
|
1 At period end. | |
|
2 Ratios for March 31, 2013 are estimates. | |
|
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
|
(In thousands, except share amounts) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) | ||||||||||||||||
|
ASSETS |
|||||||||||||||||||
|
Cash and due from banks |
$ |
928,817 |
$ |
1,841,907 |
$ |
1,060,918 |
$ |
1,124,673 |
$ |
1,082,186 | |||||||||
|
Money market investments: |
|||||||||||||||||||
|
Interest-bearing deposits |
5,785,268 |
5,978,978 |
5,519,463 |
7,887,175 |
7,629,399 | ||||||||||||||
|
Federal funds sold and security resell agreements |
2,340,177 |
2,775,354 |
1,960,294 |
83,529 |
52,634 | ||||||||||||||
|
Investment securities: |
|||||||||||||||||||
|
Held-to-maturity, at adjusted cost (approximate fair value $684,668, $674,741, $655,768, $715,710, and $728,479) |
736,158 |
756,909 |
740,738 |
773,016 |
797,149 | ||||||||||||||
|
Available-for-sale, at fair value |
3,287,844 |
3,091,310 |
3,127,192 |
3,167,590 |
3,223,086 | ||||||||||||||
|
Trading account, at fair value |
28,301 |
28,290 |
13,963 |
20,539 |
19,033 | ||||||||||||||
|
4,052,303 |
3,876,509 |
3,881,893 |
3,961,145 |
4,039,268 | |||||||||||||||
|
Loans held for sale |
161,559 |
251,651 |
220,240 |
139,245 |
184,579 | ||||||||||||||
|
Loans, net of unearned income and fees: |
|||||||||||||||||||
|
Loans and leases |
37,284,694 |
37,137,006 |
36,674,288 |
36,319,596 |
35,998,928 | ||||||||||||||
|
FDIC-supported loans |
477,725 |
528,241 |
588,566 |
642,246 |
687,126 | ||||||||||||||
|
37,762,419 |
37,665,247 |
37,262,854 |
36,961,842 |
36,686,054 | |||||||||||||||
|
Less allowance for loan losses |
841,781 |
896,087 |
927,068 |
973,443 |
1,011,786 | ||||||||||||||
|
Loans, net of allowance |
36,920,638 |
36,769,160 |
36,335,786 |
35,988,399 |
35,674,268 | ||||||||||||||
|
Other noninterest-bearing investments |
855,388 |
855,462 |
874,903 |
867,882 |
875,037 | ||||||||||||||
|
Premises and equipment, net |
706,746 |
708,882 |
709,188 |
714,913 |
715,815 | ||||||||||||||
|
Goodwill |
1,014,129 |
1,014,129 |
1,015,129 |
1,015,129 |
1,015,129 | ||||||||||||||
|
Core deposit and other intangibles |
47,000 |
50,818 |
55,034 |
59,277 |
63,538 | ||||||||||||||
|
Other real estate owned |
89,904 |
98,151 |
118,190 |
144,816 |
158,592 | ||||||||||||||
|
Other assets |
1,208,635 |
1,290,917 |
1,335,963 |
1,420,829 |
1,405,862 | ||||||||||||||
|
$ |
54,110,564 |
$ |
55,511,918 |
$ |
53,087,001 |
$ |
53,407,012 |
$ |
52,896,307 | ||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
|
Deposits: |
|||||||||||||||||||
|
Noninterest-bearing demand |
$ |
17,311,150 |
$ |
18,469,458 |
$ |
17,295,911 |
$ |
16,498,248 |
$ |
16,185,140 | |||||||||
|
Interest-bearing: |
|||||||||||||||||||
|
Savings and money market |
22,760,397 |
22,896,624 |
21,970,062 |
21,945,230 |
22,220,405 | ||||||||||||||
|
Time |
2,889,903 |
2,962,931 |
3,107,815 |
3,211,942 |
3,326,717 | ||||||||||||||
|
Foreign |
1,528,745 |
1,804,060 |
1,398,749 |
1,504,827 |
1,366,826 | ||||||||||||||
|
44,490,195 |
46,133,073 |
43,772,537 |
43,160,247 |
43,099,088 | |||||||||||||||
|
Securities sold, not yet purchased |
1,662 |
26,735 |
21,708 |
104,882 |
47,404 | ||||||||||||||
|
Federal funds purchased and security repurchase agreements |
325,107 |
320,478 |
451,214 |
759,591 |
486,808 | ||||||||||||||
|
Other short-term borrowings |
— |
5,409 |
6,608 |
7,621 |
19,839 | ||||||||||||||
|
Long-term debt |
2,352,569 |
2,337,113 |
2,326,659 |
2,274,571 |
2,283,121 | ||||||||||||||
|
Reserve for unfunded lending commitments |
100,455 |
106,809 |
105,850 |
103,586 |
98,718 | ||||||||||||||
|
Other liabilities |
489,923 |
533,660 |
484,170 |
507,151 |
474,551 | ||||||||||||||
|
Total liabilities |
47,759,911 |
49,463,277 |
47,168,746 |
46,917,649 |
46,509,529 | ||||||||||||||
|
Shareholders' equity: |
|||||||||||||||||||
|
Preferred stock, without par value, authorized 4,400,000 shares |
1,301,289 |
1,128,302 |
1,123,377 |
1,800,473 |
1,737,633 | ||||||||||||||
|
Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 184,246,471, 184,199,198, 184,156,402, 184,117,522, and 184,228,178 shares |
4,170,888 |
4,166,109 |
4,162,001 |
4,157,525 |
4,162,522 | ||||||||||||||
|
Retained earnings |
1,290,131 |
1,203,815 |
1,170,477 |
1,110,120 |
1,060,525 | ||||||||||||||
|
Accumulated other comprehensive income (loss) |
(406,903) |
(446,157) |
(534,738) |
(576,147) |
(571,567) | ||||||||||||||
|
Controlling interest shareholders' equity |
6,355,405 |
6,052,069 |
5,921,117 |
6,491,971 |
6,389,113 | ||||||||||||||
|
Noncontrolling interests |
(4,752) |
(3,428) |
(2,862) |
(2,608) |
(2,335) | ||||||||||||||
|
Total shareholders' equity |
6,350,653 |
6,048,641 |
5,918,255 |
6,489,363 |
6,386,778 | ||||||||||||||
|
$ |
54,110,564 |
$ |
55,511,918 |
$ |
53,087,001 |
$ |
53,407,012 |
$ |
52,896,307 | ||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
(In thousands, except per share amounts) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
Interest income: |
|||||||||||||||||||
|
Interest and fees on loans |
$ |
453,433 |
$ |
462,002 |
$ |
473,162 |
$ |
472,926 |
$ |
481,794 | |||||||||
|
Interest on money market investments |
5,439 |
6,004 |
5,349 |
5,099 |
4,628 | ||||||||||||||
|
Interest on securities: |
|||||||||||||||||||
|
Held-to-maturity |
7,974 |
8,130 |
8,337 |
9,325 |
8,959 | ||||||||||||||
|
Available-for-sale |
17,712 |
21,971 |
22,042 |
25,090 |
23,158 | ||||||||||||||
|
Trading account |
190 |
150 |
110 |
148 |
338 | ||||||||||||||
|
Total interest income |
484,748 |
498,257 |
509,000 |
512,588 |
518,877 | ||||||||||||||
|
Interest expense: |
|||||||||||||||||||
|
Interest on deposits |
15,642 |
16,861 |
19,049 |
20,823 |
23,413 | ||||||||||||||
|
Interest on short-term borrowings |
92 |
178 |
193 |
256 |
779 | ||||||||||||||
|
Interest on long-term debt |
50,899 |
51,261 |
51,597 |
65,165 |
57,207 | ||||||||||||||
|
Total interest expense |
66,633 |
68,300 |
70,839 |
86,244 |
81,399 | ||||||||||||||
|
Net interest income |
418,115 |
429,957 |
438,161 |
426,344 |
437,478 | ||||||||||||||
|
Provision for loan losses |
(29,035) |
(10,401) |
(1,889) |
10,853 |
15,664 | ||||||||||||||
|
Net interest income after provision for loan losses |
447,150 |
440,358 |
440,050 |
415,491 |
421,814 | ||||||||||||||
|
Noninterest income: |
|||||||||||||||||||
|
Service charges and fees on deposit accounts |
43,580 |
44,492 |
44,951 |
43,426 |
43,532 | ||||||||||||||
|
Other service charges, commissions and fees |
42,731 |
46,497 |
44,679 |
44,197 |
39,047 | ||||||||||||||
|
Trust and wealth management income |
6,994 |
7,450 |
6,521 |
8,057 |
6,374 | ||||||||||||||
|
Capital markets and foreign exchange |
7,486 |
7,708 |
6,026 |
7,342 |
5,734 | ||||||||||||||
|
Dividends and other investment income |
12,724 |
13,117 |
11,686 |
21,542 |
9,480 | ||||||||||||||
|
Loan sales and servicing income |
10,951 |
10,595 |
10,695 |
10,287 |
8,352 | ||||||||||||||
|
Fair value and nonhedge derivative loss |
(5,445) |
(4,778) |
(5,820) |
(6,784) |
(4,400) | ||||||||||||||
|
Equity securities gains (losses), net |
2,832 |
(682) |
2,683 |
107 |
9,145 | ||||||||||||||
|
Fixed income securities gains, net |
3,299 |
10,259 |
3,046 |
5,519 |
720 | ||||||||||||||
|
Impairment losses on investment securities: |
|||||||||||||||||||
|
Impairment losses on investment securities |
(31,493) |
(120,082) |
(3,876) |
(24,026) |
(18,273) | ||||||||||||||
|
Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income) |
21,376 |
36,274 |
1,140 |
16,718 |
8,064 | ||||||||||||||
|
Net impairment losses on investment securities |
(10,117) |
(83,808) |
(2,736) |
(7,308) |
(10,209) | ||||||||||||||
|
Other |
6,184 |
3,309 |
3,495 |
2,280 |
4,045 | ||||||||||||||
|
Total noninterest income |
121,219 |
54,159 |
125,226 |
128,665 |
111,820 | ||||||||||||||
|
Noninterest expense: |
|||||||||||||||||||
|
Salaries and employee benefits |
229,789 |
220,039 |
220,223 |
220,765 |
224,634 | ||||||||||||||
|
Occupancy, net |
27,389 |
28,226 |
28,601 |
28,169 |
27,951 | ||||||||||||||
|
Furniture and equipment |
26,074 |
27,774 |
27,122 |
27,302 |
26,792 | ||||||||||||||
|
Other real estate expense |
1,977 |
5,266 |
207 |
6,440 |
7,810 | ||||||||||||||
|
Credit related expense |
10,482 |
11,302 |
13,316 |
12,415 |
13,485 | ||||||||||||||
|
Provision for unfunded lending commitments |
(6,354) |
959 |
2,264 |
4,868 |
(3,704) | ||||||||||||||
|
Legal and professional services |
10,471 |
15,717 |
12,749 |
12,947 |
11,096 | ||||||||||||||
|
Advertising |
5,893 |
5,969 |
7,326 |
6,618 |
5,807 | ||||||||||||||
|
FDIC premiums |
9,711 |
10,760 |
11,278 |
10,444 |
10,919 | ||||||||||||||
|
Amortization of core deposit and other intangibles |
3,819 |
4,216 |
4,241 |
4,262 |
4,291 | ||||||||||||||
|
Other |
78,097 |
76,786 |
67,648 |
67,426 |
63,291 | ||||||||||||||
|
Total noninterest expense |
397,348 |
407,014 |
394,975 |
401,656 |
392,372 | ||||||||||||||
|
Income before income taxes |
171,021 |
87,503 |
170,301 |
142,500 |
141,262 | ||||||||||||||
|
Income taxes |
60,634 |
29,817 |
60,704 |
51,036 |
51,859 | ||||||||||||||
|
Net income |
110,387 |
57,686 |
109,597 |
91,464 |
89,403 | ||||||||||||||
|
Net loss applicable to noncontrolling interests |
(336) |
(566) |
(254) |
(273) |
(273) | ||||||||||||||
|
Net income applicable to controlling interest |
110,723 |
58,252 |
109,851 |
91,737 |
89,676 | ||||||||||||||
|
Preferred stock dividends |
(22,399) |
(22,647) |
(47,529) |
(36,522) |
(64,187) | ||||||||||||||
|
Net earnings applicable to common shareholders |
$ |
88,324 |
$ |
35,605 |
$ |
62,322 |
$ |
55,215 |
$ |
25,489 | |||||||||
|
Weighted average common shares outstanding during the period: |
|||||||||||||||||||
|
Basic shares |
183,396 |
183,300 |
183,237 |
182,985 |
182,798 | ||||||||||||||
|
Diluted shares |
183,655 |
183,456 |
183,383 |
183,137 |
182,964 | ||||||||||||||
|
Net earnings per common share: |
|||||||||||||||||||
|
Basic |
$ |
0.48 |
$ |
0.19 |
$ |
0.34 |
$ |
0.30 |
$ |
0.14 | |||||||||
|
Diluted |
0.48 |
0.19 |
0.34 |
0.30 |
0.14 | ||||||||||||||
|
Loan Balances by Portfolio Type (Unaudited) | ||||||||||||||||||||||||||||||
|
(In millions) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||||||||||
|
Commercial: |
||||||||||||||||||||||||||||||
|
Commercial and industrial |
$ |
11,504 |
$ |
11,257 |
$ |
10,840 |
$ |
10,471 |
$ |
10,253 | ||||||||||||||||||||
|
Leasing |
390 |
423 |
405 |
406 |
394 | |||||||||||||||||||||||||
|
Owner occupied |
7,501 |
7,589 |
7,669 |
7,811 |
7,886 | |||||||||||||||||||||||||
|
Municipal |
484 |
494 |
469 |
477 |
441 | |||||||||||||||||||||||||
|
Total commercial |
19,879 |
19,763 |
19,383 |
19,165 |
18,974 | |||||||||||||||||||||||||
|
Commercial real estate: |
||||||||||||||||||||||||||||||
|
Construction and land development |
2,039 |
1,939 |
1,956 |
2,099 |
2,100 | |||||||||||||||||||||||||
|
Term |
8,012 |
8,063 |
8,140 |
8,012 |
8,070 | |||||||||||||||||||||||||
|
Total commercial real estate |
10,051 |
10,002 |
10,096 |
10,111 |
10,170 | |||||||||||||||||||||||||
|
Consumer: |
||||||||||||||||||||||||||||||
|
Home equity credit line |
2,125 |
2,178 |
2,175 |
2,181 |
2,167 | |||||||||||||||||||||||||
|
1-4 family residential |
4,408 |
4,350 |
4,181 |
4,019 |
3,875 | |||||||||||||||||||||||||
|
Construction and other consumer real estate |
320 |
321 |
320 |
328 |
316 | |||||||||||||||||||||||||
|
Bankcard and other revolving plans |
293 |
307 |
295 |
284 |
274 | |||||||||||||||||||||||||
|
Other |
208 |
216 |
224 |
232 |
223 | |||||||||||||||||||||||||
|
Total consumer |
7,354 |
7,372 |
7,195 |
7,044 |
6,855 | |||||||||||||||||||||||||
|
FDIC-supported loans 1 |
478 |
528 |
589 |
642 |
687 | |||||||||||||||||||||||||
|
Total loans |
$ |
37,762 |
$ |
37,665 |
$ |
37,263 |
$ |
36,962 |
$ |
36,686 | ||||||||||||||||||||
|
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) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||||||||||
|
Balance sheet: |
||||||||||||||||||||||||||||||
|
Change in assets from reestimation of cash flows – increase (decrease): |
||||||||||||||||||||||||||||||
|
FDIC-supported loans |
$ |
18,977 |
$ |
12,970 |
$ |
17,594 |
$ |
14,761 |
$ |
13,171 | ||||||||||||||||||||
|
FDIC indemnification asset (included in other assets) |
(20,288) |
(10,610) |
(14,401) |
(11,233) |
(10,002) | |||||||||||||||||||||||||
|
Balance at end of period: |
||||||||||||||||||||||||||||||
|
FDIC-supported loans |
477,725 |
528,241 |
588,566 |
642,246 |
687,126 | |||||||||||||||||||||||||
|
FDIC indemnification asset (included in other assets) |
71,100 |
90,074 |
100,004 |
117,167 |
123,862 | |||||||||||||||||||||||||
|
Three Months Ended | ||||||||||||||||||||||||||||||
|
(In thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||||||||||
|
Statement of income: |
||||||||||||||||||||||||||||||
|
Interest income: |
||||||||||||||||||||||||||||||
|
Interest and fees on loans |
$ |
18,977 |
$ |
12,970 |
$ |
17,594 |
$ |
14,761 |
$ |
13,171 | ||||||||||||||||||||
|
Noninterest expense: |
||||||||||||||||||||||||||||||
|
Other noninterest expense |
20,288 |
10,610 |
14,401 |
11,233 |
10,002 | |||||||||||||||||||||||||
|
Net increase (decrease) in pretax income |
$ |
(1,311) |
$ |
2,360 |
$ |
3,193 |
$ |
3,528 |
$ |
3,169 | ||||||||||||||||||||
|
Nonperforming Lending-Related Assets (Unaudited) | |||||||||||||||||||
|
(Amounts in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
Nonaccrual loans |
$ |
589,221 |
$ |
630,810 |
$ |
699,952 |
$ |
771,510 |
$ |
849,543 | |||||||||
|
Other real estate owned |
80,701 |
90,269 |
106,356 |
125,142 |
129,676 | ||||||||||||||
|
Nonperforming lending-related assets, excluding FDIC-supported assets |
669,922 |
721,079 |
806,308 |
896,652 |
979,219 | ||||||||||||||
|
FDIC-supported nonaccrual loans |
4,927 |
17,343 |
19,454 |
21,980 |
22,623 | ||||||||||||||
|
FDIC-supported other real estate owned |
9,203 |
7,882 |
11,834 |
19,674 |
28,916 | ||||||||||||||
|
FDIC-supported nonperforming assets |
14,130 |
25,225 |
31,288 |
41,654 |
51,539 | ||||||||||||||
|
Total nonperforming lending-related assets |
$ |
684,052 |
$ |
746,304 |
$ |
837,596 |
$ |
938,306 |
$ |
1,030,758 | |||||||||
|
Ratio of nonperforming lending-related assets to loans 1 and leases and other real estate owned |
1.80% |
1.96% |
2.23% |
2.52% |
2.78% | ||||||||||||||
|
Accruing loans past due 90 days or more, excluding FDIC-supported loans |
$ |
12,708 |
$ |
9,730 |
$ |
14,508 |
$ |
29,460 |
$ |
38,172 | |||||||||
|
Accruing FDIC-supported loans past due 90 days or more |
47,208 |
52,033 |
60,913 |
70,453 |
76,945 | ||||||||||||||
|
Ratio of accruing loans past due 90 days or more to loans 1 and leases |
0.16% |
0.16% |
0.20% |
0.27% |
0.31% | ||||||||||||||
|
Nonaccrual loans and accruing loans past due 90 days or more |
$ |
654,064 |
$ |
709,916 |
$ |
794,827 |
$ |
893,403 |
$ |
987,283 | |||||||||
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans 1 and leases |
1.72% |
1.87% |
2.12% |
2.41% |
2.68% | ||||||||||||||
|
Accruing loans past due 30 - 89 days, excluding FDIC-supported loans |
$ |
155,896 |
$ |
185,422 |
$ |
143,539 |
$ |
142,501 |
$ |
171,224 | |||||||||
|
Accruing FDIC-supported loans past due 30 - 89 days |
11,571 |
11,924 |
15,462 |
15,519 |
13,899 | ||||||||||||||
|
Restructured loans included in nonaccrual loans |
193,975 |
215,476 |
207,088 |
227,568 |
276,669 | ||||||||||||||
|
Restructured loans on accrual |
416,181 |
407,026 |
421,055 |
393,360 |
401,554 | ||||||||||||||
|
Classified loans, excluding FDIC-supported loans |
1,737,178 |
1,767,460 |
1,810,099 |
1,880,932 |
2,076,220 | ||||||||||||||
|
1 Includes loans held for sale. | |
|
Allowance for Credit Losses (Unaudited) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
(Amounts in thousands) |
March 31, |
December 31, |
September 30, 2012 |
June 30, |
March 31, | ||||||||||||||
|
Allowance for Loan Losses |
|||||||||||||||||||
|
Balance at beginning of period |
$ |
896,087 |
$ |
927,068 |
$ |
973,443 |
$ |
1,011,786 |
$ |
1,051,685 | |||||||||
|
Add: |
|||||||||||||||||||
|
Provision for losses |
(29,035) |
(10,401) |
(1,889) |
10,853 |
15,664 | ||||||||||||||
|
Adjustment for FDIC-supported loans |
(7,429) |
(1,721) |
(5,908) |
(5,856) |
(1,057) | ||||||||||||||
|
Deduct: |
|||||||||||||||||||
|
Gross loan and lease charge-offs |
(35,467) |
(54,709) |
(58,781) |
(73,685) |
(80,014) | ||||||||||||||
|
Recoveries |
17,625 |
35,850 |
20,203 |
30,345 |
25,508 | ||||||||||||||
|
Net loan and lease charge-offs |
(17,842) |
(18,859) |
(38,578) |
(43,340) |
(54,506) | ||||||||||||||
|
Balance at end of period |
$ |
841,781 |
$ |
896,087 |
$ |
927,068 |
$ |
973,443 |
$ |
1,011,786 | |||||||||
|
Ratio of allowance for loan losses to loans and leases, at period end |
2.23% |
2.38% |
2.49% |
2.63% |
2.76% | ||||||||||||||
|
Ratio of allowance for loan losses to nonperforming loans, at period end |
141.68% |
138.25% |
128.87% |
122.68% |
116.01% | ||||||||||||||
|
Annualized ratio of net loan and lease charge-offs to average loans |
0.19% |
0.20% |
0.41% |
0.47% |
0.59% | ||||||||||||||
|
Reserve for Unfunded Lending Commitments |
|||||||||||||||||||
|
Balance at beginning of period |
$ |
106,809 |
$ |
105,850 |
$ |
103,586 |
$ |
98,718 |
$ |
102,422 | |||||||||
|
Provision charged (credited) to earnings |
(6,354) |
959 |
2,264 |
4,868 |
(3,704) | ||||||||||||||
|
Balance at end of period |
$ |
100,455 |
$ |
106,809 |
$ |
105,850 |
$ |
103,586 |
$ |
98,718 | |||||||||
|
Total Allowance for Credit Losses |
|||||||||||||||||||
|
Allowance for loan losses |
$ |
841,781 |
$ |
896,087 |
$ |
927,068 |
$ |
973,443 |
$ |
1,011,786 | |||||||||
|
Reserve for unfunded lending commitments |
100,455 |
106,809 |
105,850 |
103,586 |
98,718 | ||||||||||||||
|
Total allowance for credit losses |
$ |
942,236 |
$ |
1,002,896 |
$ |
1,032,918 |
$ |
1,077,029 |
$ |
1,110,504 | |||||||||
|
Ratio of total allowance for credit losses to loans and leases outstanding, at period end |
2.50% |
2.66% |
2.77% |
2.91% |
3.03% | ||||||||||||||
|
Nonaccrual Loans by Portfolio Type (Excluding FDIC-Supported Loans) (Unaudited) | |||||||||||||||||||||||||||||
|
(In millions) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||||||||||||
|
Loans held for sale |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— | |||||||||||||||||||
|
Commercial: |
|||||||||||||||||||||||||||||
|
Commercial and industrial |
100 |
91 |
103 |
133 |
149 | ||||||||||||||||||||||||
|
Leasing |
1 |
1 |
1 |
1 |
1 | ||||||||||||||||||||||||
|
Owner occupied |
195 |
206 |
223 |
240 |
245 | ||||||||||||||||||||||||
|
Municipal |
9 |
9 |
6 |
— |
— | ||||||||||||||||||||||||
|
Total commercial |
305 |
307 |
333 |
374 |
395 | ||||||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||||||||||
|
Construction and land development |
93 |
108 |
125 |
115 |
148 | ||||||||||||||||||||||||
|
Term |
102 |
125 |
155 |
182 |
191 | ||||||||||||||||||||||||
|
Total commercial real estate |
195 |
233 |
280 |
297 |
339 | ||||||||||||||||||||||||
|
Consumer: |
|||||||||||||||||||||||||||||
|
Home equity credit line |
12 |
14 |
12 |
14 |
17 | ||||||||||||||||||||||||
|
1-4 family residential |
71 |
70 |
66 |
76 |
87 | ||||||||||||||||||||||||
|
Construction and other consumer real estate |
4 |
5 |
6 |
8 |
8 | ||||||||||||||||||||||||
|
Bankcard and other revolving plans |
1 |
1 |
1 |
1 |
1 | ||||||||||||||||||||||||
|
Other |
1 |
1 |
2 |
2 |
3 | ||||||||||||||||||||||||
|
Total consumer |
89 |
91 |
87 |
101 |
116 | ||||||||||||||||||||||||
|
Total nonaccrual loans |
$ |
589 |
$ |
631 |
$ |
700 |
$ |
772 |
$ |
850 | |||||||||||||||||||
|
Net Charge-Offs by Portfolio Type (Unaudited) | |||||||||||||||||||||||||||||
|
(In millions) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||||||||||||
|
Commercial: |
|||||||||||||||||||||||||||||
|
Commercial and industrial |
$ |
5 |
$ |
(1) |
$ |
3 |
$ |
9 |
$ |
17 | |||||||||||||||||||
|
Leasing |
— |
2 |
— |
— |
— | ||||||||||||||||||||||||
|
Owner occupied |
5 |
7 |
10 |
10 |
8 | ||||||||||||||||||||||||
|
Municipal |
— |
— |
— |
— |
— | ||||||||||||||||||||||||
|
Total commercial |
10 |
8 |
13 |
19 |
25 | ||||||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||||||||||
|
Construction and land development |
(3) |
(7) |
— |
(2) |
(2) | ||||||||||||||||||||||||
|
Term |
5 |
7 |
16 |
13 |
18 | ||||||||||||||||||||||||
|
Total commercial real estate |
2 |
— |
16 |
11 |
16 | ||||||||||||||||||||||||
|
Consumer: |
|||||||||||||||||||||||||||||
|
Home equity credit line |
2 |
6 |
2 |
6 |
4 | ||||||||||||||||||||||||
|
1-4 family residential |
3 |
4 |
4 |
5 |
7 | ||||||||||||||||||||||||
|
Construction and other consumer real estate |
(1) |
— |
1 |
— |
1 | ||||||||||||||||||||||||
|
Bankcard and other revolving plans |
2 |
1 |
2 |
1 |
2 | ||||||||||||||||||||||||
|
Other |
— |
— |
— |
1 |
— | ||||||||||||||||||||||||
|
Total consumer loans |
6 |
11 |
9 |
13 |
14 | ||||||||||||||||||||||||
|
Total net charge-offs |
$ |
18 |
$ |
19 |
$ |
38 |
$ |
43 |
$ |
55 | |||||||||||||||||||
|
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) | ||||||||||||||||||||
|
Three Months Ended | ||||||||||||||||||||
|
March 31, 2013 |
December 31, 2012 |
September 30, 2012 | ||||||||||||||||||
|
(In thousands) |
Average |
Average |
Average |
Average |
Average |
Average | ||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Money market investments |
$ |
8,111,798 |
0.27% |
$ |
8,652,394 |
0.28% |
$ |
7,990,243 |
0.27% | |||||||||||
|
Securities: |
||||||||||||||||||||
|
Held-to-maturity |
756,739 |
5.11% |
740,297 |
5.29% |
758,761 |
5.32% | ||||||||||||||
|
Available-for-sale |
3,035,592 |
2.41% |
2,958,311 |
3.01% |
3,052,559 |
2.93% | ||||||||||||||
|
Trading account |
22,620 |
3.41% |
21,793 |
2.74% |
13,691 |
3.20% | ||||||||||||||
|
Total securities |
3,814,951 |
2.95% |
3,720,401 |
3.46% |
3,825,011 |
3.41% | ||||||||||||||
|
Loans held for sale |
204,597 |
3.50% |
231,710 |
3.22% |
183,224 |
3.52% | ||||||||||||||
|
Loans 1: |
||||||||||||||||||||
|
Loans and leases |
37,099,182 |
4.67% |
36,685,969 |
4.78% |
36,585,753 |
4.86% | ||||||||||||||
|
FDIC-supported loans |
498,654 |
21.43% |
559,643 |
15.12% |
613,710 |
17.27% | ||||||||||||||
|
Total loans |
37,597,836 |
4.90% |
37,245,612 |
4.94% |
37,199,463 |
5.07% | ||||||||||||||
|
Total interest-earning assets |
49,729,182 |
3.99% |
49,850,117 |
4.01% |
49,197,941 |
4.15% | ||||||||||||||
|
Cash and due from banks |
1,063,314 |
1,259,311 |
1,000,159 |
|||||||||||||||||
|
Allowance for loan losses |
(884,363) |
(925,943) |
(964,676) |
|||||||||||||||||
|
Goodwill |
1,014,129 |
1,014,986 |
1,015,129 |
|||||||||||||||||
|
Core deposit and other intangibles |
49,069 |
53,083 |
57,345 |
|||||||||||||||||
|
Other assets |
2,889,354 |
3,014,503 |
3,060,914 |
|||||||||||||||||
|
Total assets |
$ |
53,860,685 |
$ |
54,266,057 |
$ |
53,366,812 |
||||||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Interest-bearing deposits: |
||||||||||||||||||||
|
Savings and money market |
$ |
22,735,258 |
0.19% |
$ |
22,356,014 |
0.20% |
$ |
22,025,891 |
0.23% | |||||||||||
|
Time |
2,935,316 |
0.62% |
3,038,934 |
0.64% |
3,162,165 |
0.69% | ||||||||||||||
|
Foreign |
1,528,665 |
0.20% |
1,597,513 |
0.23% |
1,472,437 |
0.29% | ||||||||||||||
|
Total interest-bearing deposits |
27,199,239 |
0.23% |
26,992,461 |
0.25% |
26,660,493 |
0.28% | ||||||||||||||
|
Borrowed funds: |
||||||||||||||||||||
|
Securities sold, not yet purchased |
494 |
—% |
3,320 |
—% |
2,062 |
—% | ||||||||||||||
|
Federal funds purchased and security repurchase agreements |
289,918 |
0.10% |
429,653 |
0.14% |
453,209 |
0.14% | ||||||||||||||
|
Other short-term borrowings |
3,837 |
2.01% |
6,293 |
1.71% |
8,273 |
1.73% | ||||||||||||||
|
Long-term debt |
2,331,314 |
8.85% |
2,318,478 |
8.80% |
2,297,409 |
8.93% | ||||||||||||||
|
Total borrowed funds |
2,625,563 |
7.88% |
2,757,744 |
7.42% |
2,760,953 |
7.46% | ||||||||||||||
|
Total interest-bearing liabilities |
29,824,802 |
0.91% |
29,750,205 |
0.91% |
29,421,446 |
0.96% | ||||||||||||||
|
Noninterest-bearing deposits |
17,211,214 |
17,918,890 |
16,817,085 |
|||||||||||||||||
|
Other liabilities |
608,206 |
610,316 |
606,973 |
|||||||||||||||||
|
Total liabilities |
47,644,222 |
48,279,411 |
46,845,504 |
|||||||||||||||||
|
Shareholders' equity: |
||||||||||||||||||||
|
Preferred equity |
1,229,708 |
1,126,566 |
1,765,162 |
|||||||||||||||||
|
Common equity |
4,990,317 |
4,862,972 |
4,758,858 |
|||||||||||||||||
|
Controlling interest shareholders' equity |
6,220,025 |
5,989,538 |
6,524,020 |
|||||||||||||||||
|
Noncontrolling interests |
(3,562) |
(2,892) |
(2,712) |
|||||||||||||||||
|
Total shareholders' equity |
6,216,463 |
5,986,646 |
6,521,308 |
|||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
53,860,685 |
$ |
54,266,057 |
$ |
53,366,812 |
||||||||||||||
|
Spread on average interest-bearing funds |
3.08% |
3.10% |
3.19% | |||||||||||||||||
|
Net yield on interest-earning assets |
3.44% |
3.47% |
3.58% | |||||||||||||||||
|
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) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
Net earnings applicable to common shareholders (GAAP) |
$ |
88,324 |
$ |
35,605 |
$ |
62,322 |
$ |
55,215 |
$ |
25,489 | |||||||||
|
Adjustments, net of tax: |
|||||||||||||||||||
|
Impairment loss on goodwill |
— |
583 |
— |
— |
— | ||||||||||||||
|
Amortization of core deposit and other intangibles |
2,425 |
2,677 |
2,692 |
2,704 |
2,722 | ||||||||||||||
|
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a) |
$ |
90,749 |
$ |
38,865 |
$ |
65,014 |
$ |
57,919 |
$ |
28,211 | |||||||||
|
Average common equity (GAAP) |
$ |
4,990,317 |
$ |
4,862,972 |
$ |
4,758,858 |
$ |
4,713,318 |
$ |
4,644,722 | |||||||||
|
Average goodwill |
(1,014,129) |
(1,014,986) |
(1,015,129) |
(1,015,129) |
(1,015,129) | ||||||||||||||
|
Average core deposit and other intangibles |
(49,069) |
(53,083) |
(57,345) |
(61,511) |
(65,837) | ||||||||||||||
|
Average tangible common equity (non-GAAP) (b) |
$ |
3,927,119 |
$ |
3,794,903 |
$ |
3,686,384 |
$ |
3,636,678 |
$ |
3,563,756 | |||||||||
|
Number of days in quarter (c) |
90 |
92 |
92 |
91 |
91 | ||||||||||||||
|
Number of days in year (d) |
365 |
366 |
366 |
366 |
366 | ||||||||||||||
|
Tangible return on average tangible common equity (non-GAAP) (a/b/c*d) |
9.37% |
4.07% |
7.02% |
6.41% |
3.18% | ||||||||||||||
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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