SALT LAKE CITY, Jan. 25 /PRNewswire-FirstCall/ -- Zions Bancorporation ("Zions" or "the Company") today reported a fourth quarter net loss applicable to common shareholders of $176.5 million or $1.26 per diluted share, compared to a net loss of $181.9 million or $1.43 per diluted share for the third quarter of 2009.
As discussed subsequently, the Company has included in this press release expected revisions for certain second and third quarter 2009 amounts as a result of changes in the accounting for its June 2009 subordinated debt modification. The Company believes these changes will increase tangible common equity by $173 million at June 30, 2009 and by $166 million at September 30, 2009, increasing the tangible common equity ratio at those dates by 0.34% and 0.33%, respectively, compared to the ratios previously disclosed.
Fourth Quarter 2009 Highlights Positives: -- Tangible common equity ratio of 6.12% compared to 5.76% (revised from 5.43%) in third quarter. -- Net loan charge-offs of $292.1 million, which included a $39 million recovery, compared to $381.3 million in third quarter. -- Loan loss provision of $390.7 million compared to $565.9 million in third quarter. -- Ratio of allowance for loan losses to net loans and leases of 3.95% compared to 3.61% in third quarter; ratio of total allowance and reserve for credit losses to net loans and leases of 4.25% compared to 3.86% in third quarter. -- Average noninterest-bearing demand deposits of $12.1 billion compared to $11.4 billion in third quarter, an increase of $0.7 billion or 25.3% annualized. Challenges: -- Nonperforming lending related assets of $2.3 billion compared to $2.2 billion in third quarter (excluding FDIC-supported assets); ratio to net loans and other real estate owned of 5.93% compared to 5.40% in third quarter. -- Credit-related impairment losses on CDO securities of $99.3 million compared to $56.5 million in third quarter; approximately 95% of the fourth quarter losses had been previously recognized in OCI. -- In spite of originating and renewing approximately $1.7 billion of new credit during the fourth quarter, loan balances declined 2.6% from the third quarter due to continued weakness in loan demand.
"We enter into 2010 feeling increasingly confident that peak levels of loan losses are behind us, and that economic conditions in the majority of our markets have begun to stabilize," said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, "Various measures of credit quality have steadied or improved compared to prior quarters, which is likely to lead to lower loan losses and provision expenses. While the economic, political, and regulatory environment remains in flux, our capital ratios remain significantly above regulatory benchmarks for a "well capitalized" banking institution, and we are encouraged with the recent improvement in our tangible common equity ratio."
Amended Financial Statements
As described in a separate Form 8-K filed on this date, the Company has reevaluated its accounting for the June 2009 subordinated debt modification in connection with responding to regular inquiries received from the Securities and Exchange Commission in January 2010. As a result, the Company has incorporated into these results expected revisions to its financial statements for the second and third quarters of 2009. The primary expected change is an increase to tangible common equity resulting from the Company's recalculation of the amount of gain recognized in earnings and the value of the conversion feature granted to noteholders. Amounts for the second and third quarters of 2009 in this press release (including the attached financial exhibits) reflect these expected changes. The Company anticipates filing amended Forms 10-Q for the periods ending June 30, 2009 and September 30, 2009.
Asset Quality
Net loan and lease charge-offs for the fourth quarter of 2009 were $292.1 million or 2.98% annualized of average loans excluding FDIC-supported assets. This compares with $381.3 million or 3.79% annualized of average loans excluding FDIC-supported assets for the third quarter of 2009 and $179.7 million or 1.72% annualized of average loans for the fourth quarter of 2008. The 2009 fourth quarter net charge-offs included a $39.3 million recovery on a commercial credit charged-off during the second quarter of 2009. Net charge-offs on construction development loans subsided during the quarter.
The provision for loan losses was $390.7 million for the fourth quarter of 2009 compared to $565.9 million for the third quarter of 2009 and $285.2 million for the fourth quarter of 2008. When combined with the provision for unfunded lending commitments, the total provision for credit losses was $117.8 million in excess of net loan and lease charge-offs.
The allowance for loan losses as a percentage of net loans and leases excluding FDIC-supported assets was 3.95% at December 31, 2009 compared to 3.61% at September 30, 2009 and 1.65% at December 31, 2008. The combined allowance for loan losses and reserve for unfunded lending commitments was $1,647.8 million, or 4.25% of net loans and leases excluding FDIC-supported assets at December 31, 2009, compared to 3.86% at September 30, 2009 and 1.77% at December 31, 2008.
Nonperforming lending related assets were $2,330.0 million at December 31, 2009 ($2,740.1 million including FDIC-supported assets) compared to $2,171.0 million at September 30, 2009 and $1,138.4 million at December 31, 2008. The ratio of nonperforming lending related assets excluding FDIC-supported assets to net loans, leases and other real estate owned was 5.93% at December 31, 2009 compared to 5.40% at September 30, 2009 and 2.71% at December 31, 2008.
Capital and Financing Actions
During the fourth quarter of 2009, the Company sold 11,237,500 shares of common stock for $155.5 million (average price of $13.84) under a common equity distribution program. These shares were sold in connection with the announced sale of $250 million of common stock that commenced on September 17, 2009. Net of commissions and fees, this sale added $152.9 million to tangible common equity during the quarter, or 0.31% to the tangible common equity ratio. The amount of common stock at December 31, 2009 that remained available for issuance under the program was approximately $27.3 million.
During the fourth quarter of 2009, $35.7 million of subordinated debt was converted into shares of the Company's Series C preferred stock under the previously announced debt modification program. The tangible common equity ratio decreased by 0.04% primarily from the acceleration of discount amortization on the converted debt, which increased interest expense by approximately $20.0 million during the fourth quarter of 2009.
On December 22, 2009, the Company completed the exchange of approximately $71.5 million liquidation amount of its Series A preferred stock into 2,816,834 shares of common stock. Tangible common equity was increased by the same amount. The exchange represented 51% of the liquidation amount of the Series A preferred stock outstanding at the time of the exchange.
On December 30, 2009, the Company executed an agreement to modify $40 million of certain subordinated debt held by one institutional investor in a manner similar to the previous subordinated debt modification, resulting in a $15.2 million pretax gain.
For the year 2009, the Company raised Tier 1 capital of approximately $997 million from the net issuance of $464 million of common stock and from the net effects of the debt modification and the preferred stock redemptions, which totaled $533 million.
The tangible common equity ratio was 6.12% at December 31, 2009 compared to 5.76% (revised from 5.43%) at September 30, 2009 and 5.89% at December 31, 2008. The change from the third quarter was primarily due to the impact of the equity transactions and secondarily to reductions in the balance sheet. The estimated Tier 1 common to risk-weighted assets ratio was 6.50% at December 31, 2009 compared to 6.59% at September 30, 2009.
Loans
Net loans and leases of $40.2 billion at December 31, 2009 decreased approximately $1.1 billion or 10.3% annualized from $41.3 billion at September 30, 2009, and decreased $1.5 billion or 3.5% from $41.7 billion at December 31, 2008. Excluding FDIC-supported assets, net loans and leases decreased approximately $0.9 billion or 9.1% annualized to $38.7 billion from $39.6 billion at September 30, 2009 and decreased $2.9 billion, or 7.0% from the balance one year ago. The net decrease from September 30, 2009 was primarily in the construction and land development portfolio.
Deposits
Average noninterest-bearing demand deposits for the fourth quarter of 2009 increased $0.7 billion or 25.3% annualized to $12.1 billion compared to $11.4 billion for the third quarter of 2009. Average total deposits for the fourth quarter of 2009 decreased $0.4 billion or 3.8% annualized to $42.9 billion compared to $43.3 billion for the third quarter of 2009, and increased $3.4 billion or 8.5% compared to $39.6 billion for the fourth quarter of 2008.
Net Interest Income
The net interest margin was 3.81% for the fourth quarter of 2009 compared to 3.91% for the third quarter of 2009 and 4.20% for the fourth quarter of 2008. The net interest margin for the fourth quarter of 2009 was unfavorably impacted primarily by 0.11% for the discount amortization on the modified subordinated debt, and an additional 0.17% for the accelerated discount amortization due to the previously discussed conversion of $35.7 million of modified subordinated debt. The net interest margin was favorably impacted during the fourth quarter by the previously mentioned growth of noninterest-bearing demand deposits, reduced rates on interest-bearing deposits, and strong pricing on new loans.
Investment Securities
During the fourth quarter of 2009, the Company recognized credit-related net impairment losses on CDOs of $99.3 million, or $0.44 per diluted share, compared to $56.5 million during the third quarter of 2009. Approximately $94.7 million of the impairment losses during the fourth quarter had been previously recognized in OCI.
CDOs for which the underlying collateral is predominantly bank trust preferred securities comprise $2.2 billion of the $2.7 billion par amount of the bank and insurance CDO portfolio. Below is a table showing the Company's current predominantly bank CDO distribution by original rating (e.g. 52% of the current $2.2 billion was originally rated AAA). Most (86%) of the $99.3 million of securities impairment charges taken during the fourth quarter came from the original single A and BBB rated, predominantly bank CDOs.
(In millions) December 31, 2009 ----------------- Par Amortized cost Carrying value --- -------------- -------------- Original Amount % Amount % Amount % -------- ------ --- ------ --- ------ --- ratings ------- AAA $1,138 52% $944 53% $832 71% A 949 44% 807 45% 324 28% BBB 91 4% 40 2% 15 1% --- --- --- $2,178 100% $1,791 100% $1,171 100% ====== === ====== === ====== === (In millions) % of carrying Change ------------- 12/31/09 value to par ------------ vs Original 12/31/09 9/30/09 9/30/09 -------- -------- ------- -------- ratings ------- AAA 73% 69% 4% A 34% 37% -3% BBB 16% 25% -9% 54% 53% 1% Noninterest Income
Noninterest income for the fourth quarter of 2009 was $65.9 million compared to $270.7 million for the third quarter of 2009 and a loss of $82.3 million for the fourth quarter of 2008. The decline for the fourth quarter of 2009 compared to the third quarter was primarily due to higher security impairment losses and lower fair value and nonhedge derivative income in the fourth quarter, and to acquisition related gains of $146.2 million in the third quarter. These declines were offset in part by the $15.2 million gain from the $40 million debt modification previously discussed.
The sequential quarter decline in fair value and nonhedge derivative income during the fourth quarter was mainly due to a lower amount of hedge ineffectiveness recognized primarily on cash flow hedges of floating rate loans.
Noninterest Expense
Noninterest expense for the fourth quarter of 2009 was $441.1 million compared to $434.7 million for the third quarter of 2009 and $398.2 million for the fourth quarter of 2008. Primary changes in the fourth quarter of 2009 compared to the third quarter included a decrease in the provision for unfunded lending commitments to $19.2 million from $36.5 million, offset primarily by increases in other real estate expense, FDIC premiums, and other noninterest expense.
Conference Call
Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 25, 2010). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-888-500-6974 (international: 719-325-2327) and entering the passcode 4744324, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at http://www.zionsbancorporation.com/. A replay of the call will be available from 8:30 p.m. ET on Monday, January 25, 2010, until midnight ET on Monday, February 1, 2010, by dialing 1-888-203-1112 (international: 719-457-0820) and entering the passcode 4744324. The webcast of the conference call will also be archived and available for 30 days.
About Zions Bancorporation
Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through approximately 500 offices in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at http://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 news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including changes in securities markets and valuations in structured securities and other assets; changes in governmental policies and programs resulting from general economic and financial market conditions; changes in interest and funding rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; and changes in accounting policies, procedures or determinations as may be required by the Financial Accounting Standards Board or other regulatory agencies, including determinations relating to the Company's accounting treatment of its subordinated debt modification.
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.
ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended (In thousands, except per share and ratio data) December 31, ------------ 2009 2008 % Change ---- ---- -------- EARNINGS Taxable-equivalent net interest income $462,608 $514,422 (10.07)% Taxable-equivalent revenue 528,495 432,132 22.30 % Net interest income 456,889 508,442 (10.14)% Noninterest income 65,887 (82,290) 180.07 % Provision for loan losses 390,719 285,189 37.00 % Noninterest expense 441,129 398,167 10.79 % Impairment loss on goodwill 2,224 353,804 (99.37)% Income (loss) before income taxes (311,296) (611,008) 49.05 % Income taxes (benefit) (125,809) (126,512) 0.56 % Net income (loss) (185,487) (484,496) 61.72 % Net income (loss) applicable to noncontrolling interests (1,423) (1,520) 6.38 % Net income (loss) applicable to controlling interest (184,064) (482,976) 61.89 % Net earnings (loss) applicable to common shareholders (176,482) (498,084) 64.57 % PER COMMON SHARE Net earnings (loss) (diluted) (1.26) (4.37) 71.17 % Dividends 0.01 0.32 (96.88)% Book value per common share Tangible common equity per common share SELECTED RATIOS Return on average assets (1.37)% (3.52)% Return on average common equity (16.80)% (38.77)% Efficiency ratio 83.47 % 92.14 % Net interest margin 3.81 % 4.20 % ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) Year Ended (In thousands, except per share and ratio data) December 31, ------------ 2009 2008 % Change ---- ---- -------- EARNINGS Taxable-equivalent net interest income $1,920,845 $1,995,368 (3.73)% Taxable-equivalent revenue 2,724,946 2,186,060 24.65 % Net interest income 1,897,532 1,971,646 (3.76)% Noninterest income 804,101 190,692 321.68 % Provision for loan losses 2,016,927 648,269 211.13 % Noninterest expense 1,671,510 1,474,963 13.33 % Impairment loss on goodwill 636,216 353,804 79.82 % Income (loss) before income taxes (1,623,020) (314,698) (415.74)% Income taxes (benefit) (401,343) (43,365) (825.50)% Net income (loss) (1,221,677) (271,333) (350.25)% Net income (loss) applicable to noncontrolling interests (5,566) (5,064) (9.91)% Net income (loss) applicable to controlling interest (1,216,111) (266,269) (356.72)% Net earnings (loss) applicable to common shareholders (1,234,447) (290,693) (324.66)% PER COMMON SHARE Net earnings (loss) (diluted) (9.92) (2.68) (270.15)% Dividends 0.10 1.61 (93.79)% Book value per common share 27.85 42.65 (34.70)% Tangible common equity per common share 20.35 27.24 (25.29)% SELECTED RATIOS Return on average assets (2.25)% (0.50)% Return on average common equity (28.35)% (5.69)% Efficiency ratio 61.34 % 67.47 % Net interest margin 3.94 % 4.18 % ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) Three Months Ended (In thousands, except share and ratio data) December 31, ------------ 2009 2008 % Change ---- ---- -------- AVERAGE BALANCES Total assets $53,259,715 $54,546,364 (2.36)% Total interest-earning assets 48,161,377 48,708,673 (1.12)% Securities 4,451,396 4,516,559 (1.44)% Net loans and leases 40,740,630 41,769,536 (2.46)% Goodwill 1,017,361 1,720,536 (40.87)% Core deposit and other intangibles 120,512 130,703 (7.80)% Total deposits 42,936,759 39,580,867 8.48 % Shareholders' equity: Preferred equity 1,543,363 961,072 60.59 % Common equity 4,166,944 5,110,430 (18.46)% Noncontrolling interests 19,178 28,751 (33.30)% Weighted average common and common- equivalent shares outstanding 139,858,788 114,065,100 22.61 % AT PERIOD END Total assets Total interest-earning assets Securities Net loans and leases Allowance for loan losses Reserve for unfunded lending commitments Goodwill Core deposit and other intangibles Total deposits Shareholders' equity: Preferred equity Common equity Noncontrolling interests Common shares outstanding Average equity to average assets 10.76% 11.18% Tangible common equity ratio Tangible equity ratio Nonperforming assets, excluding FDIC-supported assets Ratio of nonperforming assets, excluding FDIC- supported assets, to net loans and leases and other real estate owned Accruing loans past due 90 days or more, excluding FDIC-supported assets ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) Year Ended (In thousands, except share and ratio data) December 31, ------------ 2009 2008 % Change ---- ---- -------- AVERAGE BALANCES Total assets $54,048,324 $53,761,908 0.53 % Total interest-earning assets 48,770,074 47,690,955 2.26 % Securities 4,651,059 4,825,234 (3.61)% Net loans and leases 41,513,066 40,794,781 1.76 % Goodwill 1,174,407 1,936,865 (39.37)% Core deposit and other intangibles 124,901 136,698 (8.63)% Total deposits 42,847,011 37,572,680 14.04 % Shareholders' equity: Preferred equity 1,558,046 431,936 260.71 % Common equity 4,354,634 5,107,675 (14.74)% Noncontrolling interests 23,718 29,156 (18.65)% Weighted average common and common- equivalent shares outstanding 124,442,992 108,908,028 14.26 % AT PERIOD END Total assets $51,123,007 $55,092,791 (7.21)% Total interest-earning assets 45,677,809 49,071,281 (6.92)% Securities 4,548,757 4,509,308 0.87 % Net loans and leases 40,188,980 41,658,738 (3.53)% Allowance for loan losses 1,531,332 686,999 122.90 % Reserve for unfunded lending commitments 116,445 50,934 128.62 % Goodwill 1,015,161 1,651,377 (38.53)% Core deposit and other intangibles 113,416 125,935 (9.94)% Total deposits 41,840,589 41,316,496 1.27 % Shareholders' equity: Preferred equity 1,502,784 1,581,834 (5.00)% Common equity 4,189,874 4,919,862 (14.84)% Noncontrolling interests 17,599 27,320 (35.58)% Common shares outstanding 150,425,070 115,344,813 30.41 % Average equity to average assets 10.98% 10.36% Tangible common equity ratio 6.12% 5.89% Tangible equity ratio 9.16% 8.91% Nonperforming assets, excluding FDIC-supported assets $2,330,045 $1,138,375 104.68 % Ratio of nonperforming assets, excluding FDIC-supported assets, to net loans and leases and other real estate owned 5.93% 2.71% Accruing loans past due 90 days or more, excluding FDIC-supported assets $107,040 $129,567 (17.39)% ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) Three Months Ended ------------------ (In thousands, except per share and December September ratio data) 31, 30, June 30, 2009 2009 (1) 2009 (1) ---- ------- ------- EARNINGS Taxable-equivalent net interest income $462,608 $478,135 $499,432 Taxable-equivalent revenue 528,495 748,875 1,112,168 Net interest income 456,889 472,180 493,688 Noninterest income 65,887 270,740 612,736 Provision for loan losses 390,719 565,930 762,654 Noninterest expense 441,129 434,707 419,469 Impairment loss on goodwill 2,224 - - Income (loss) before income taxes (311,296) (257,717) (75,699) Income taxes (benefit) (125,809) (100,046) (23,761) Net income (loss) (185,487) (157,671) (51,938) Net income (loss) applicable to noncontrolling interests (1,423) (2,394) (1,209) Net income (loss) applicable to controlling interest (184,064) (155,277) (50,729) Net earnings (loss) applicable to common shareholders (176,482) (181,880) (23,758) PER COMMON SHARE Net earnings (loss) (diluted) (1.26) (1.43) (0.21) Dividends 0.01 0.01 0.04 Book value per common share 27.85 30.38 33.89 Tangible common equity per common share 20.35 22.01 24.78 SELECTED RATIOS Return on average assets (1.37)% (1.15)% (0.38)% Return on average common equity (16.80)% (16.74)% (2.37)% Efficiency ratio 83.47 % 58.05 % 37.72 % Net interest margin 3.81 % 3.91 % 4.10 % ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) Three Months Ended ------------------ (In thousands, except per share and December ratio data) March 31, 31, 2009 2008 ---- ---- EARNINGS Taxable-equivalent net interest income $480,670 $514,422 Taxable-equivalent revenue 335,408 432,132 Net interest income 474,775 508,442 Noninterest income (145,262) (82,290) Provision for loan losses 297,624 285,189 Noninterest expense 376,205 398,167 Impairment loss on goodwill 633,992 353,804 Income (loss) before income taxes (978,308) (611,008) Income taxes (benefit) (151,727) (126,512) Net income (loss) (826,581) (484,496) Net income (loss) applicable to noncontrolling interests (540) (1,520) Net income (loss) applicable to controlling interest (826,041) (482,976) Net earnings (loss) applicable to common shareholders (852,327) (498,084) PER COMMON SHARE Net earnings (loss) (diluted) (7.47) (4.37) Dividends 0.04 0.32 Book value per common share 34.39 42.65 Tangible common equity per common share 24.34 27.24 SELECTED RATIOS Return on average assets (6.05)% (3.52)% Return on average common equity (70.07)% (38.77)% Efficiency ratio 112.16 % 92.14 % Net interest margin 3.94 % 4.20 % (1) Certain amounts were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) Three Months Ended ------------------ (In thousands, except share December September and ratio data) 31, 30, June 30, 2009 2009 (1) 2009 (1) ---- ------- ------- AVERAGE BALANCES Total assets $53,259,715 $53,494,525 $54,068,979 Total interest-earning assets 48,161,377 48,556,637 48,905,370 Securities 4,451,396 4,758,872 4,907,115 Net loans and leases 40,740,630 41,741,646 41,797,670 Goodwill 1,017,361 1,017,387 1,017,382 Core deposit and other intangibles 120,512 126,614 125,768 Total deposits 42,936,759 43,349,431 42,958,798 Shareholders' equity: Preferred equity 1,543,363 1,518,289 1,587,752 Common equity 4,166,944 4,309,497 4,018,032 Noncontrolling interests 19,178 22,810 25,268 Weighted average common and common- equivalent shares outstanding 139,858,788 127,581,404 115,908,127 AT PERIOD END Total assets $51,123,007 $53,298,150 $52,767,954 Total interest-earning assets 45,677,809 48,293,329 47,933,124 Securities 4,548,757 4,500,906 4,920,445 Net loans and leases 40,188,980 41,255,104 41,307,998 Allowance for loan losses 1,531,332 1,432,715 1,248,055 Reserve for unfunded lending commitments 116,445 97,225 60,688 Goodwill 1,015,161 1,017,385 1,017,385 Core deposit and other intangibles 113,416 123,551 121,675 Total deposits 41,840,589 43,007,981 42,644,172 Shareholders' equity: Preferred equity 1,502,784 1,529,462 1,491,730 Common equity 4,189,874 4,143,246 4,238,944 Noncontrolling interests 17,599 21,533 24,021 Common shares outstanding 150,425,070 136,398,089 125,095,328 Average equity to average assets 10.76% 10.94% 10.41% Tangible common equity ratio 6.12% 5.76% 6.00% Tangible equity ratio 9.16% 8.73% 8.94% Nonperforming assets, excluding FDIC-supported assets $2,330,045 $2,171,014 $1,922,557 Ratio of nonperforming assets, excluding FDIC- supported assets, to net loans and leases and other real estate owned 5.93% 5.40% 4.68% Accruing loans past due 90 days or more, excluding FDIC-supported assets $107,040 $186,519 $178,300 ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) Three Months Ended ------------------ (In thousands, except share and ratio December data) March 31, 31, 2009 2008 ---- ---- AVERAGE BALANCES Total assets $55,399,675 $54,546,364 Total interest-earning assets 49,473,679 48,708,673 Securities 4,486,050 4,516,559 Net loans and leases 41,781,241 41,769,536 Goodwill 1,654,222 1,720,536 Core deposit and other intangibles 126,759 130,703 Total deposits 42,128,652 39,580,867 Shareholders' equity: Preferred equity 1,583,659 961,072 Common equity 4,932,977 5,110,430 Noncontrolling interests 27,720 28,751 Weighted average common and common- equivalent shares outstanding 114,106,164 114,065,100 AT PERIOD END Total assets $54,545,012 $55,092,791 Total interest-earning assets 49,091,438 49,071,281 Securities 4,800,957 4,509,308 Net loans and leases 41,756,753 41,658,738 Allowance for loan losses 832,878 686,999 Reserve for unfunded lending commitments 52,761 50,934 Goodwill 1,034,465 1,651,377 Core deposit and other intangibles 124,585 125,935 Total deposits 43,307,233 41,316,496 Shareholders' equity: Preferred equity 1,587,027 1,581,834 Common equity 3,965,979 4,919,862 Noncontrolling interests 26,828 27,320 Common shares outstanding 115,335,668 115,344,813 Average equity to average assets 11.81% 11.18% Tangible common equity ratio 5.26% 5.89% Tangible equity ratio 8.28% 8.91% Nonperforming assets, excluding FDIC- supported assets $1,647,913 $1,138,375 Ratio of nonperforming assets, excluding FDIC-supported assets, to net loans and leases and other real estate owned 3.96% 2.71% Accruing loans past due 90 days or more, excluding FDIC-supported assets $88,035 $129,567 (1) Certain amounts were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December September 31, 30, (In thousands, except share amounts) 2009 2009 (1) ---- ------- (Unaudited) (Unaudited) ASSETS Cash and due from banks $1,370,189 $992,940 Money market investments: Interest-bearing deposits and commercial paper 652,964 2,234,337 Federal funds sold 20,985 44,056 Security resell agreements 57,556 52,539 Investment securities: Held-to-maturity, at adjusted cost (approximate fair value $833,455, $835,814, $891,186, $1,361,460, and $1,443,555) 869,595 877,105 Available-for-sale, at fair value 3,655,619 3,547,092 Trading account, at fair value (includes $0, $0, $0, $0, and $538 transferred as collateral under repurchase agreements) 23,543 76,709 ------ ------ 4,548,757 4,500,906 Loans held for sale 208,567 206,387 Loans: Loans and leases excluding FDIC-supported assets 38,882,083 39,782,240 FDIC-supported assets 1,444,594 1,607,493 --------- --------- 40,326,677 41,389,733 Less: Unearned income and fees, net of related costs 137,697 134,629 Allowance for loan losses 1,531,332 1,432,715 --------- --------- Loans and leases, net of allowance 38,657,648 39,822,389 Other noninterest-bearing investments 1,099,961 1,061,464 Premises and equipment, net 710,534 698,225 Goodwill 1,015,161 1,017,385 Core deposit and other intangibles 113,416 123,551 Other real estate owned 389,782 413,901 Other assets 2,277,487 2,130,070 --------- --------- $51,123,007 $53,298,150 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $12,324,247 $11,453,247 Interest-bearing: Savings and NOW 5,843,573 5,392,096 Money market 16,378,874 17,413,735 Time under $100,000 2,497,395 2,784,593 Time $100,000 and over 3,117,472 3,949,684 Foreign 1,679,028 2,014,626 --------- --------- 41,840,589 43,007,981 Securities sold, not yet purchased 43,404 39,360 Federal funds purchased 208,669 1,008,181 Security repurchase agreements 577,346 509,014 Other liabilities 588,527 651,139 Commercial paper 1,084 2,449 Federal Home Loan Bank advances and other borrowings: One year or less 120,189 42,962 Over one year 15,722 18,803 Long-term debt 2,017,220 2,324,020 --------- --------- Total liabilities 45,412,750 47,603,909 ---------- ---------- Shareholders' equity: Preferred stock, without par value, authorized 3,000,000 shares 1,502,784 1,529,462 Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 150,425,070, 136,398,089, 125,095,328, 115,335,668, and 115,344,813 shares 3,318,417 3,125,344 Retained earnings 1,324,516 1,502,232 Accumulated other comprehensive income (loss) (436,899) (469,112) Deferred compensation (16,160) (15,218) ------- ------- Controlling interest shareholders' equity 5,692,658 5,672,708 Noncontrolling interests 17,599 21,533 ------ ------ Total shareholders' equity 5,710,257 5,694,241 --------- --------- $51,123,007 $53,298,150 =========== =========== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, March 31, (In thousands, except share amounts) 2009 (1) 2009 ------- ---- (Unaudited) (Unaudited) ASSETS Cash and due from banks $1,229,205 $1,321,972 Money market investments: Interest- bearing deposits and commercial paper 1,005,060 1,952,555 Federal funds sold 390,619 13,277 Security resell agreements 57,476 305,111 Investment securities: Held- to- maturity, at adjusted cost (approximate fair value $833,455, $835,814, $891,186, $1,361,460, and $1,443,555) 937,942 1,648,971 Available- for- sale, at fair value 3,903,895 3,086,788 Trading account, at fair value (includes $0, $0, $0, $0, and $538 transferred as collateral under repurchase agreements) 78,608 65,198 ------ ------ 4,920,445 4,800,957 Loans held for sale 251,526 262,785 Loans: Loans and leases excluding FDIC- supported assets 40,654,802 41,220,610 FDIC- supported assets 783,238 660,892 ------- ------- 41,438,040 41,881,502 Less: Unearned income and fees, net of related costs 130,042 124,749 Allowance for loan losses 1,248,055 832,878 --------- ------- Loans and leases, net of allowance 40,059,943 40,923,875 Other noninterest- bearing investments 1,046,131 1,051,956 Premises and equipment, net 703,613 701,742 Goodwill 1,017,385 1,034,465 Core deposit and other intangibles 121,675 124,585 Other real estate owned 304,778 243,609 Other assets 1,660,098 1,808,123 --------- --------- $52,767,954 $54,545,012 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest- bearing demand $11,142,017 $10,517,910 Interest- bearing: Savings and NOW 4,949,711 4,710,899 Money market 17,276,743 18,103,564 Time under $100,000 2,845,893 3,112,864 Time $100,000 and over 4,455,225 4,647,015 Foreign 1,974,583 2,214,981 --------- --------- 42,644,172 43,307,233 Securities sold, not yet purchased 51,109 39,892 Federal funds purchased 1,169,809 1,213,970 Security repurchase agreements 565,975 551,686 Other liabilities 597,543 578,768 Commercial paper 1,019 984 Federal Home Loan Bank advances and other borrowings: One year or less 47,152 429,655 Over one year 18,882 127,680 Long- term debt 1,917,598 2,715,310 --------- --------- Total liabilities 47,013,259 48,965,178 ---------- ---------- Shareholders' equity: Preferred stock, without par value, authorized 3,000,000 shares 1,491,730 1,587,027 Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 150,425,070, 136,398,089, 125,095,328, 115,335,668, and 115,344,813 shares 2,935,724 2,607,541 Retained earnings 1,685,522 1,713,897 Accumulated other comprehensive income (loss) (368,164) (340,727) Deferred compensation (14,138) (14,732) ------- ------- Controlling interest shareholders' equity 5,730,674 5,553,006 Noncontrolling interests 24,021 26,828 ------ ------ Total shareholders' equity 5,754,695 5,579,834 --------- --------- $52,767,954 $54,545,012 =========== =========== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, (In thousands, except share amounts) 2008 ---- ASSETS Cash and due from banks $1,475,976 Money market investments: Interest-bearing deposits and commercial paper 2,332,759 Federal funds sold 83,451 Security resell agreements 286,707 Investment securities: Held-to-maturity, at adjusted cost (approximate fair value $833,455, $835,814, $891,186, $1,361,460, and $1,443,555) 1,790,989 Available-for-sale, at fair value 2,676,255 Trading account, at fair value (includes $0, $0, $0, $0, and $538 transferred as collateral under repurchase agreements) 42,064 ------ 4,509,308 Loans held for sale 200,318 Loans: Loans and leases excluding FDIC-supported assets 41,791,237 FDIC-supported assets - --- 41,791,237 Less: Unearned income and fees, net of related costs 132,499 Allowance for loan losses 686,999 ------- Loans and leases, net of allowance 40,971,739 Other noninterest-bearing investments 1,044,092 Premises and equipment, net 687,096 Goodwill 1,651,377 Core deposit and other intangibles 125,935 Other real estate owned 191,792 Other assets 1,532,241 --------- $55,092,791 =========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $9,683,385 Interest-bearing: Savings and NOW 4,452,919 Money market 16,826,846 Time under $100,000 2,974,566 Time $100,000 and over 4,756,218 Foreign 2,622,562 --------- 41,316,496 Securities sold, not yet purchased 35,657 Federal funds purchased 965,835 Security repurchase agreements 899,751 Other liabilities 669,111 Commercial paper 15,451 Federal Home Loan Bank advances and other borrowings: One year or less 2,039,853 Over one year 128,253 Long-term debt 2,493,368 --------- Total liabilities 48,563,775 ---------- Shareholders' equity: Preferred stock, without par value, authorized 3,000,000 shares 1,581,834 Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 150,425,070, 136,398,089, 125,095,328, 115,335,668, and 115,344,813 shares 2,599,916 Retained earnings 2,433,363 Accumulated other comprehensive income (loss) (98,958) Deferred compensation (14,459) ------- Controlling interest shareholders' equity 6,501,696 Noncontrolling interests 27,320 ------ Total shareholders' equity 6,529,016 --------- $55,092,791 =========== (1) Certain amounts were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended ------------------ (In thousands, except per share December September amounts) 31, 30, June 30, 2009 2009 (1) 2009 (1) ---- ------- ------- Interest income: Interest and fees on loans $569,613 $586,246 $583,590 Interest on loans held for sale 2,735 2,434 3,082 Lease financing 5,289 5,125 4,735 Interest on money market investments 1,800 1,195 1,543 Interest on securities: Held-to-maturity - taxable (2,075) 4,864 9,367 Held-to-maturity - nontaxable 5,396 5,806 5,796 Available-for-sale - taxable 21,063 23,460 26,982 Available-for-sale - nontaxable 1,813 1,830 1,778 Trading account 492 842 823 --- --- --- Total interest income 606,126 631,802 637,696 ------- ------- ------- Interest expense: Interest on savings and money market deposits 43,921 54,554 64,949 Interest on time and foreign deposits 28,671 42,780 52,577 Interest on short-term borrowings 2,714 2,325 3,661 Interest on long-term borrowings 73,931 59,963 22,821 ------ ------ ------ Total interest expense 149,237 159,622 144,008 ------- ------- ------- Net interest income 456,889 472,180 493,688 Provision for loan losses 390,719 565,930 762,654 ------- ------- ------- Net interest income after provision for loan losses 66,170 (93,750) (268,966) ------ ------- -------- Noninterest income: Service charges and fees on deposit accounts 53,475 54,466 51,833 Other service charges, commissions and fees 38,794 39,227 40,291 Trust and wealth management income 5,825 8,209 8,750 Capital markets and foreign exchange 8,692 12,106 16,311 Dividends and other investment income 12,942 2,597 2,684 Loan sales and servicing income 7,011 2,359 7,040 Income (loss) from securities conduit 32 - (149) Fair value and nonhedge derivative income (loss) 31,367 58,092 20,316 Equity securities gains (losses), net (2,164) (1,805) (619) Fixed income securities gains (losses), net (7,385) 1,900 1,444 Impairment losses on investment securities: Impairment losses on investment securities (134,357) (198,378) (71,515) Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income) 35,051 141,863 29,546 ------ ------- ------ Net impairment losses on investment securities (99,306) (56,515) (41,969) Valuation losses on securities purchased - - (11,701) Gains on swap termination and debt modification 15,220 - 493,725 Acquisition related gains 56 146,153 22,977 Other 1,328 3,951 1,803 ----- ----- ----- Total noninterest income 65,887 270,740 612,736 ------ ------- ------- Noninterest expense: Salaries and employee benefits 206,823 205,433 202,420 Occupancy, net 28,667 28,556 26,651 Furniture and equipment 24,689 25,320 24,870 Other real estate expense 38,290 30,419 23,748 Legal and professional services 10,081 9,076 9,497 Postage and supplies 7,879 7,680 8,036 Advertising 5,738 4,418 5,678 FDIC premiums 24,197 19,820 42,329 Amortization of core deposit and other intangibles 10,135 7,575 7,078 Provision for unfunded lending commitments 19,220 36,537 7,927 Other 65,410 59,873 61,235 ------ ------ ------ Total noninterest expense 441,129 434,707 419,469 ------- ------- ------- Impairment loss on goodwill 2,224 - - ----- --- --- Income (loss) before income taxes (311,296) (257,717) (75,699) Income taxes (benefit) (125,809) (100,046) (23,761) -------- -------- ------- Net income (loss) (185,487) (157,671) (51,938) Net income (loss) applicable to noncontrolling interests (1,423) (2,394) (1,209) ------ ------ ------ Net income (loss) applicable to controlling interest (184,064) (155,277) (50,729) Preferred stock dividends (24,633) (26,603) (25,447) Preferred stock redemption 32,215 - 52,418 ------ --- ------ Net earnings (loss) applicable to common shareholders $(176,482) $(181,880) $(23,758) ========= ========= ======== Weighted average common shares outstanding during the period: Basic shares 139,859 127,581 115,908 Diluted shares 139,859 127,581 115,908 Net earnings (loss) per common share: Basic $(1.26) $(1.43) $(0.21) Diluted (1.26) (1.43) (0.21) ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended ------------------ December (In thousands, except per share amounts) March 31, 31, 2009 2008 ---- ---- Interest income: Interest and fees on loans $579,852 $650,885 Interest on loans held for sale 2,756 2,442 Lease financing 4,593 4,999 Interest on money market investments 3,376 7,172 Interest on securities: Held-to-maturity - taxable 18,908 22,317 Held-to-maturity - nontaxable 6,265 6,396 Available-for-sale - taxable 21,703 28,680 Available-for-sale - nontaxable 1,678 1,711 Trading account 571 598 --- --- Total interest income 639,702 725,200 ------- ------- Interest expense: Interest on savings and money market deposits 74,553 95,717 Interest on time and foreign deposits 62,679 77,806 Interest on short-term borrowings 6,020 20,368 Interest on long-term borrowings 21,675 22,867 ------ ------ Total interest expense 164,927 216,758 ------- ------- Net interest income 474,775 508,442 Provision for loan losses 297,624 285,189 ------- ------- Net interest income after provision for loan losses 177,151 223,253 ------- ------- Noninterest income: Service charges and fees on deposit accounts 52,788 52,641 Other service charges, commissions and fees 38,227 40,532 Trust and wealth management income 7,165 8,910 Capital markets and foreign exchange 13,204 15,048 Dividends and other investment income 8,408 16,001 Loan sales and servicing income 5,851 4,420 Income (loss) from securities conduit 1,235 1,542 Fair value and nonhedge derivative income (loss) 4,004 (5,819) Equity securities gains (losses), net 2,763 (14,125) Fixed income securities gains (losses), net 195 (1,139) Impairment losses on investment securities: Impairment losses on investment securities (165,616) (196,472) Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income) 82,943 - ------ --- Net impairment losses on investment securities (82,673) (196,472) Valuation losses on securities purchased (200,391) (7,868) Gains on swap termination and debt modification - - Acquisition related gains - - Other 3,962 4,039 ----- ----- Total noninterest income (145,262) (82,290) -------- ------- Noninterest expense: Salaries and employee benefits 204,161 190,861 Occupancy, net 28,327 29,460 Furniture and equipment 24,999 26,507 Other real estate expense 18,343 40,124 Legal and professional services 8,543 14,774 Postage and supplies 8,410 9,873 Advertising 7,148 10,078 FDIC premiums 14,171 5,745 Amortization of core deposit and other intangibles 6,886 8,055 Provision for unfunded lending commitments 1,827 (577) Other 53,390 63,267 ------ ------ Total noninterest expense 376,205 398,167 ------- ------- Impairment loss on goodwill 633,992 353,804 ------- ------- Income (loss) before income taxes (978,308) (611,008) Income taxes (benefit) (151,727) (126,512) -------- -------- Net income (loss) (826,581) (484,496) Net income (loss) applicable to noncontrolling interests (540) (1,520) ---- ------ Net income (loss) applicable to controlling interest (826,041) (482,976) Preferred stock dividends (26,286) (15,108) Preferred stock redemption - - --- --- Net earnings (loss) applicable to common shareholders $(852,327) $(498,084) ========= ========= Weighted average common shares outstanding during the period: Basic shares 114,106 114,065 Diluted shares 114,106 114,065 Net earnings (loss) per common share: Basic $(7.47) $(4.37) Diluted (7.47) (4.37) (1) Certain amounts were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Continued) (Unaudited) Year Ended (In thousands, except per share amounts) December 31, ------------ 2009 2008 ---- ---- Interest income: Interest and fees on loans $2,319,301 $2,646,112 Interest on loans held for sale 11,007 10,074 Lease financing 19,742 22,099 Interest on money market investments 7,914 47,780 Interest on securities: Held-to-maturity - taxable 31,064 62,282 Held-to-maturity - nontaxable 23,263 25,368 Available-for-sale - taxable 93,208 151,139 Available-for-sale - nontaxable 7,099 7,170 Trading account 2,728 1,875 ----- ----- Total interest income 2,515,326 2,973,899 --------- --------- Interest expense: Interest on savings and money market deposits 237,977 370,568 Interest on time and foreign deposits 186,707 342,325 Interest on short-term borrowings 14,720 178,875 Interest on long-term borrowings 178,390 110,485 ------- ------- Total interest expense 617,794 1,002,253 ------- --------- Net interest income 1,897,532 1,971,646 Provision for loan losses 2,016,927 648,269 --------- ------- Net interest income after provision for loan losses (119,395) 1,323,377 -------- --------- Noninterest income: Service charges and fees on deposit accounts 212,562 206,988 Other service charges, commissions and fees 156,539 167,669 Trust and wealth management income 29,949 37,752 Capital markets and foreign exchange 50,313 49,898 Dividends and other investment income 26,631 46,362 Loan sales and servicing income 22,261 24,379 Income from securities conduit 1,118 5,502 Fair value and nonhedge derivative income (loss) 113,779 (47,976) Equity securities gains (losses), net (1,825) 793 Fixed income securities gains (losses), net (3,846) 849 Impairment losses on investment securities: Impairment losses on investment securities (569,866) (304,040) Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income) 289,403 - ------- --- Net impairment losses on investment securities (280,463) (304,040) Valuation losses on securities purchased (212,092) (13,072) Gains on swap termination and debt modification 508,945 - Acquisition related gains 169,186 - Other 11,044 15,588 ------ ------ Total noninterest income 804,101 190,692 ------- ------- Noninterest expense: Salaries and employee benefits 818,837 810,501 Occupancy, net 112,201 114,175 Furniture and equipment 99,878 100,136 Other real estate expense 110,800 50,378 Legal and professional services 37,197 45,517 Postage and supplies 32,005 37,455 Advertising 22,982 30,731 FDIC premiums 100,517 19,858 Amortization of core deposit and other intangibles 31,674 33,162 Provision for unfunded lending commitments 65,511 1,467 Other 239,908 231,583 ------- ------- Total noninterest expense 1,671,510 1,474,963 --------- --------- Impairment loss on goodwill 636,216 353,804 ------- ------- Income (loss) before income taxes (1,623,020) (314,698) Income taxes (benefit) (401,343) (43,365) -------- ------- Net income (loss) (1,221,677) (271,333) Net income (loss) applicable to noncontrolling interests (5,566) (5,064) ------ ------ Net income (loss) applicable to controlling interest (1,216,111) (266,269) Preferred stock dividends (102,969) (24,424) Preferred stock redemption 84,633 - ------ --- Net earnings (loss) applicable to common shareholders $(1,234,447) $(290,693) =========== ========= Weighted average common shares outstanding during the period: Basic shares 124,443 108,908 Diluted shares 124,443 108,908 Net earnings (loss) per common share: Basic $(9.92) $(2.68) Diluted (9.92) (2.68) ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Preferred Common Retained (In thousands, except per share amounts) stock(1) stock(1) earnings(1) ------- ------- ---------- Balance, December 31, 2008 $1,581,834 $2,599,916 $2,433,363 Cumulative effect of change in accounting principle, adoption of new OTTI guidance in FASB ASC 320 137,462 Comprehensive loss: Net loss for the period (826,041) Other comprehensive income (loss), net of tax: Net realized and unrealized holding losses on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Other comprehensive loss Total comprehensive loss Dividends on preferred stock 5,193 (26,286) Net stock issued under employee plans and related tax benefits 7,625 Dividends on common stock, $.04 per share (4,601) Change in deferred compensation Other changes in noncontrolling interests Balance, March 31, 2009 1,587,027 2,607,541 1,713,897 Comprehensive loss: Net loss for the period (50,729) Other comprehensive income (loss), net of tax: Net realized and unrealized holding gains on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Other comprehensive loss Total comprehensive loss Preferred stock redemption (100,511) 1,763 52,418 Dividends on preferred stock 5,214 (25,447) Issuance of common stock 123,741 Subordinated debt modification 201,154 Net stock issued under employee plans and related tax benefits 1,525 Dividends on common stock, $.04 per share (4,617) Change in deferred compensation Other changes in noncontrolling interests Balance, June 30, 2009 1,491,730 2,935,724 1,685,522 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Accumulated other comprehensive Deferred (In thousands, except per share amounts) income (loss) compensation ------------- ------------ Balance, December 31, 2008 $(98,958) $(14,459) Cumulative effect of change in accounting principle, adoption of new OTTI guidance in FASB ASC 320 (137,462) Comprehensive loss: Net loss for the period Other comprehensive income (loss), net of tax: Net realized and unrealized holding losses on investments and retained interests (83,553) Reclassification for net realized losses on investments recorded in operations 38,862 Noncredit-related impairment losses on securities not expected to be sold (49,928) Accretion of securities with noncredit-related impairment losses not expected to be sold 896 Net unrealized losses on derivative instruments (10,584) ------- Other comprehensive loss (104,307) Total comprehensive loss Dividends on preferred stock Net stock issued under employee plans and related tax benefits Dividends on common stock, $.04 per share Change in deferred compensation (273) Other changes in noncontrolling interests Balance, March 31, 2009 (340,727) (14,732) Comprehensive loss: Net loss for the period Other comprehensive income (loss), net of tax: Net realized and unrealized holding gains on investments and retained interests 5,041 Reclassification for net realized losses on investments recorded in operations 24,434 Noncredit-related impairment losses on securities not expected to be sold (17,855) Accretion of securities with noncredit- related impairment losses not expected to be sold 35 Net unrealized losses on derivative instruments (39,092) ------- Other comprehensive loss (27,437) Total comprehensive loss Preferred stock redemption Dividends on preferred stock Issuance of common stock Subordinated debt modification Net stock issued under employee plans and related tax benefits Dividends on common stock, $.04 per share Change in deferred compensation 594 Other changes in noncontrolling interests Balance, June 30, 2009 (368,164) (14,138) ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Total Noncontrolling shareholders' (In thousands, except per share amounts) interests equity (1) --------- --------- Balance, December 31, 2008 $27,320 $6,529,016 Cumulative effect of change in accounting principle, adoption of new OTTI guidance in FASB ASC 320 - Comprehensive loss: Net loss for the period (540) (826,581) Other comprehensive income (loss), net of tax: Net realized and unrealized holding losses on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Other comprehensive loss (104,307) -------- Total comprehensive loss (930,888) Dividends on preferred stock (21,093) Net stock issued under employee plans and related tax benefits 7,625 Dividends on common stock, $.04 per share (4,601) Change in deferred compensation (273) Other changes in noncontrolling interests 48 48 --- --- Balance, March 31, 2009 26,828 5,579,834 Comprehensive loss: Net loss for the period (1,209) (51,938) Other comprehensive income (loss), net of tax: Net realized and unrealized holding gains on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit- related impairment losses not expected to be sold Net unrealized losses on derivative instruments Other comprehensive loss (27,437) ------- Total comprehensive loss (79,375) Preferred stock redemption (46,330) Dividends on preferred stock (20,233) Issuance of common stock 123,741 Subordinated debt modification 201,154 Net stock issued under employee plans and related tax benefits 1,525 Dividends on common stock, $.04 per share (4,617) Change in deferred compensation 594 Other changes in noncontrolling interests (1,598) (1,598) ------ ------ Balance, June 30, 2009 24,021 5,754,695 (1) Certain amounts for the second and third quarters were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Preferred Common Retained (In thousands, except per share amounts) stock(1) stock(1) earnings(1) ------- ------- ---------- Comprehensive loss: Net loss for the period $(155,277) Other comprehensive income (loss), net of tax: Net realized and unrealized holding losses on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Other comprehensive loss Total comprehensive loss Subordinated debt converted to preferred stock $32,497 $(4,740) Preferred stock redemption (152) Dividends on preferred stock 5,235 (26,603) Issuance of common stock 187,518 Net stock issued under employee plans and related tax benefits 6,842 Dividends on common stock, $.01 per share (1,258) Change in deferred compensation Other changes in noncontrolling interests Balance, September 30, 2009 1,529,462 3,125,344 1,502,232 Comprehensive loss: Net loss for the period (184,064) Other comprehensive income (loss), net of tax: Net realized and unrealized holding gains on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Pension and postretirement Other comprehensive income Total comprehensive loss Subordinated debt converted to preferred stock 41,941 (6,259) Preferred stock converted to common stock (71,537) 38,486 32,367 Dividends on preferred stock 2,918 (24,632) Issuance of common stock 152,851 Subordinated debt modification 1,660 Net stock issued under employee plans and related tax benefits 6,335 Dividends on common stock, $.01 per share (1,387) Change in deferred compensation Other changes in noncontrolling interests Balance, December 31, 2009 $1,502,784 $3,318,417 $1,324,516 ========== ========== ========== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Accumulated other comprehensive Deferred (In thousands, except per share income amounts) (loss) compensation ------ ------------ Comprehensive loss: Net loss for the period Other comprehensive income (loss), net of tax: Net realized and unrealized holding losses on investments and retained interests $(3,491) Reclassification for net realized losses on investments recorded in operations 33,249 Noncredit-related impairment losses on securities not expected to be sold (84,748) Accretion of securities with noncredit- related impairment losses not expected to be sold 32 Net unrealized losses on derivative instruments (45,990) ------- Other comprehensive loss (100,948) Total comprehensive loss Subordinated debt converted to preferred stock Preferred stock redemption Dividends on preferred stock Issuance of common stock Net stock issued under employee plans and related tax benefits Dividends on common stock, $.01 per share Change in deferred compensation $(1,080) Other changes in noncontrolling interests Balance, September 30, 2009 (469,112) (15,218) Comprehensive loss: Net loss for the period Other comprehensive income (loss), net of tax: Net realized and unrealized holding gains on investments and retained interests 16,966 Reclassification for net realized losses on investments recorded in operations 65,661 Noncredit-related impairment losses on securities not expected to be sold (21,713) Accretion of securities with noncredit- related impairment losses not expected to be sold 33 Net unrealized losses on derivative instruments (32,931) Pension and postretirement 4,197 ----- Other comprehensive income 32,213 Total comprehensive loss Subordinated debt converted to preferred stock Preferred stock converted to common stock Dividends on preferred stock Issuance of common stock Subordinated debt modification Net stock issued under employee plans and related tax benefits Dividends on common stock, $.01 per share Change in deferred compensation (942) Other changes in noncontrolling interests Balance, December 31, 2009 $(436,899) $(16,160) ========= ======== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Total Noncontrolling shareholders' (In thousands, except per share amounts) interests equity (1) --------- --------- Comprehensive loss: Net loss for the period $(2,394) $(157,671) Other comprehensive income (loss), net of tax: Net realized and unrealized holding losses on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Other comprehensive loss (100,948) -------- Total comprehensive loss (258,619) Subordinated debt converted to preferred stock 27,757 Preferred stock redemption (152) Dividends on preferred stock (21,368) Issuance of common stock 187,518 Net stock issued under employee plans and related tax benefits 6,842 Dividends on common stock, $.01 per share (1,258) Change in deferred compensation (1,080) Other changes in noncontrolling interests (94) (94) --- --- Balance, September 30, 2009 21,533 5,694,241 Comprehensive loss: Net loss for the period (1,423) (185,487) Other comprehensive income (loss), net of tax: Net realized and unrealized holding gains on investments and retained interests Reclassification for net realized losses on investments recorded in operations Noncredit-related impairment losses on securities not expected to be sold Accretion of securities with noncredit-related impairment losses not expected to be sold Net unrealized losses on derivative instruments Pension and postretirement Other comprehensive income 32,213 ------ Total comprehensive loss (153,274) Subordinated debt converted to preferred stock 35,682 Preferred stock converted to common stock (684) Dividends on preferred stock (21,714) Issuance of common stock 152,851 Subordinated debt modification 1,660 Net stock issued under employee plans and related tax benefits 6,335 Dividends on common stock, $.01 per share (1,387) Change in deferred compensation (942) Other changes in noncontrolling interests (2,511) (2,511) ------ ------ Balance, December 31, 2009 $17,599 $5,710,257 ======= ========== (1) Certain amounts for the second and third quarters were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES Loan Balances By Portfolio Type (Unaudited) December September 31, 30, June 30, (In millions) 2009 2009 2009 ---- ---- ---- Commercial lending: Commercial and industrial $9,922 $10,124 $10,588 Leasing 466 449 423 Owner occupied 8,751 8,745 8,782 ----- ----- ----- Total commercial lending 19,139 19,318 19,793 Commercial real estate: Construction and land development 5,603 6,087 6,848 Term 7,206 7,279 6,795 ----- ----- ----- Total commercial real estate 12,809 13,366 13,643 Consumer: Home equity credit line 2,135 2,114 2,086 1-4 family residential 3,642 3,698 3,781 Construction and other consumer real estate 459 537 599 Bankcard and other revolving plans 340 333 344 Other 293 343 342 --- --- --- Total consumer 6,869 7,025 7,152 Foreign loans 65 74 67 FDIC-supported assets (1) 1,445 1,607 783 ----- ----- --- Total loans $40,327 $41,390 $41,438 ======= ======= ======= ZIONS BANCORPORATION AND SUBSIDIARIES Loan Balances By Portfolio Type (Unaudited) March December 31, 31, (In millions) 2009 2008 ---- ---- Commercial lending: Commercial and industrial $10,958 $11,447 Leasing 401 431 Owner occupied 8,769 8,743 ----- ----- Total commercial lending 20,128 20,621 Commercial real estate: Construction and land development 7,265 7,516 Term 6,559 6,196 ----- ----- Total commercial real estate 13,824 13,712 Consumer: Home equity credit line 2,058 2,005 1-4 family residential 3,817 3,877 Construction and other consumer real estate 666 774 Bankcard and other revolving plans 327 374 Other 358 385 --- --- Total consumer 7,226 7,415 Foreign loans 43 43 FDIC-supported assets (1) 661 - --- --- Total loans $41,882 $41,791 ======= ======= (1) FDIC-supported assets represent assets acquired from the FDIC subject to loss sharing agreements. ZIONS BANCORPORATION AND SUBSIDIARIES Nonperforming Lending Related Assets (Unaudited) December September (In thousands) 31, 30, June 30, 2009 2009 2009 ---- ---- ---- Nonaccrual loans $1,994,393 $1,811,827 $1,628,700 Other real estate owned 335,652 359,187 293,857 ------- ------- ------- Nonperforming assets, excluding FDIC-supported assets 2,330,045 2,171,014 1,922,557 --------- --------- --------- FDIC-supported nonaccrual loans 355,911 544,558 125,854 FDIC-supported other real estate owned 54,130 54,714 10,921 ------ ------ ------ FDIC-supported nonperforming assets (1) 410,041 599,272 136,775 ------- ------- ------- Total nonperforming assets $2,740,086 $2,770,286 $2,059,332 ========== ========== ========== Ratio of nonperforming assets, excluding FDIC-supported assets, to net loans and leases(2) and other real estate owned 5.93% 5.40% 4.68% Ratio of nonperforming assets to net loans and leases (2) and other real estate owned 6.73% 6.62% 4.92% Accruing loans past due 90 days or more, excluding FDIC-supported assets $107,040 $186,519 $178,300 FDIC-supported assets past due 90 days or more 56,260 35,553 18,231 Ratio of accruing loans past due 90 days or more, excluding FDIC-supported assets, to net loans and leases 0.27% 0.47% 0.44% Ratio of accruing loans past due 90 days or more to net loans and leases 0.40% 0.54% 0.47% Nonaccrual loans and accruing loans past due 90 days or more, excluding FDIC-supported assets $2,101,433 $1,998,346 $1,807,000 Ratio of nonaccrual loans and accruing loans past due 90 days or more to net loans and leases (2) 5.39% 5.01% 4.43% Accruing loans past due 30 -89 days, excluding FDIC-supported assets $428,290 $571,399 $495,527 FDIC-supported assets past due 30 - 89 days 27,485 74,142 26,144 Restructured loans included in nonaccrual loans 298,820 106,922 100,590 Restructured loans on accrual 206,730 115,635 39,280 ZIONS BANCORPORATION AND SUBSIDIARIES Nonperforming Lending Related Assets (Unaudited) December (In thousands) March 31, 31, 2009 2008 ---- ---- Nonaccrual loans $1,421,279 $946,583 Other real estate owned 226,634 191,792 ------- ------- Nonperforming assets, excluding FDIC- supported assets 1,647,913 1,138,375 --------- --------- FDIC-supported nonaccrual loans 89,935 - FDIC-supported other real estate owned 16,975 - ------ --- FDIC-supported nonperforming assets (1) 106,910 - ------- --- Total nonperforming assets $1,754,823 $1,138,375 ========== ========== Ratio of nonperforming assets, excluding FDIC-supported assets, to net loans and leases(2) and other real estate owned 3.96% 2.71% Ratio of nonperforming assets to net loans and leases (2) and other real estate owned 4.15% 2.71% Accruing loans past due 90 days or more, excluding FDIC-supported assets $88,035 $129,567 FDIC-supported assets past due 90 days or more 24,365 - Ratio of accruing loans past due 90 days or more, excluding FDIC-supported assets, to net loans and leases 0.21% 0.31% Ratio of accruing loans past due 90 days or more to net loans and leases 0.27% 0.31% Nonaccrual loans and accruing loans past due 90 days or more, excluding FDIC-supported assets $1,509,314 $1,076,150 Ratio of nonaccrual loans and accruing loans past due 90 days or more to net loans and leases (2) 3.65% 2.57% Accruing loans past due 30 -89 days, excluding FDIC-supported assets $740,754 $528,964 FDIC-supported assets past due 30 - 89 days 40,066 - Restructured loans included in nonaccrual loans 5,363 16,279 Restructured loans on accrual 17,362 2,086 (1) FDIC-supported assets represent assets acquired from the FDIC subject to loss sharing agreements. (2) Includes loans held for sale. ZIONS BANCORPORATION AND SUBSIDIARIES Allowance and Reserve for Credit Losses (Unaudited) Three Months Ended ------------------ December September (In thousands) 31, 30, June 30, 2009 2009 2009 ---- ---- ---- Allowance for Loan Losses Balance at beginning of period $1,432,715 $1,248,055 $832,878 Allowance associated with purchased securitized loans and loans sold - - - Add: Provision for losses 390,719 565,930 762,654 Deduct: Gross loan and lease charge- offs (355,601) (389,134) (353,226) Charge-offs recoverable from FDIC 2,303 - - Recoveries 61,196 7,864 5,749 ------ ----- ----- Net loan and lease charge-offs (292,102) (381,270) (347,477) Reclassification to reserve for unfunded lending commitments - - - --- --- --- Balance at end of period $1,531,332 $1,432,715 $1,248,055 ========== ========== ========== Ratio of allowance for loan losses to net loans and leases, excluding FDIC- supported assets, outstanding at period end 3.95% 3.61% 3.08% Ratio of allowance for loan losses to nonperforming loans, excluding FDIC-supported assets, at period end 76.78% 79.08% 76.63% Annualized ratio of net loan and lease charge-offs to average loans, excluding FDIC- supported assets 2.98% 3.79% 3.39% Reserve for Unfunded Lending Commitments Balance at beginning of period $97,225 $60,688 $52,761 Reclassification from allowance for loan losses - - - Provision charged (credited) against earnings 19,220 36,537 7,927 ------ ------ ----- Balance at end of period $116,445 $97,225 $60,688 ======== ======= ======= Total Allowance and Reserve for Credit Losses Allowance for loan losses $1,531,332 $1,432,715 $1,248,055 Reserve for unfunded lending commitments 116,445 97,225 60,688 ------- ------ ------ Total allowance and reserve for credit losses $1,647,777 $1,529,940 $1,308,743 ========== ========== ========== Ratio of total allowance and reserve for credit losses to net loans and leases outstanding, excluding FDIC-supported assets, at period end 4.25% 3.86% 3.23% ZIONS BANCORPORATION AND SUBSIDIARIES Allowance and Reserve for Credit Losses (Unaudited) Three Months Ended ------------------ December (In thousands) March 31, 31, 2009 2008 ---- ---- Allowance for Loan Losses Balance at beginning of period $686,999 $609,433 Allowance associated with purchased securitized loans and loans sold - 30 Add: Provision for losses 297,624 285,189 Deduct: Gross loan and lease charge-offs (157,691) (185,317) Charge-offs recoverable from FDIC - - Recoveries 5,946 5,601 ----- ----- Net loan and lease charge-offs (151,745) (179,716) Reclassification to reserve for unfunded lending commitments - (27,937) --- ------- Balance at end of period $832,878 $686,999 ======== ======== Ratio of allowance for loan losses to net loans and leases, excluding FDIC-supported assets, outstanding at period end 2.03% 1.65% Ratio of allowance for loan losses to nonperforming loans, excluding FDIC-supported assets, at period end 58.60% 72.58% Annualized ratio of net loan and lease charge-offs to average loans, excluding FDIC- supported assets 1.47% 1.72% Reserve for Unfunded Lending Commitments Balance at beginning of period $50,934 $23,574 Reclassification from allowance for loan losses - 27,937 Provision charged (credited) against earnings 1,827 (577) ----- ---- Balance at end of period $52,761 $50,934 ======= ======= Total Allowance and Reserve for Credit Losses Allowance for loan losses $832,878 $686,999 Reserve for unfunded lending commitments 52,761 50,934 ------ ------ Total allowance and reserve for credit losses $885,639 $737,933 ======== ======== Ratio of total allowance and reserve for credit losses to net loans and leases outstanding, excluding FDIC-supported assets, at period end 2.16% 1.77% ZIONS BANCORPORATION AND SUBSIDIARIES Nonaccrual Loans By Portfolio Type (Excluding FDIC-Supported Assets) (Unaudited) December 31, September 30, June 30, (In millions) 2009 2009 2009 ---- ---- ---- Loans held for sale $- $- $18 Commercial lending: Commercial and industrial 331 231 200 Leasing 11 10 10 Owner occupied 474 357 282 --- --- --- Total commercial lending 816 598 492 Commercial real estate: Construction and land development 784 839 826 Term 229 221 126 --- --- --- Total commercial real estate 1,013 1,060 952 Consumer: Home equity credit line 11 8 6 1-4 family residential 113 101 113 Construction and other consumer real estate 37 42 45 Bankcard and other revolving plans 1 1 1 Other 3 2 2 --- --- --- Total consumer 165 154 167 --- --- --- Total nonaccrual loans $1,994 $1,812 $1,629 ====== ====== ====== ZIONS BANCORPORATION AND SUBSIDIARIES Nonaccrual Loans By Portfolio Type (Excluding FDIC-Supported Assets) (Unaudited) December March 31, 31, (In millions) 2009 2008 ---- ---- Loans held for sale $18 $30 Commercial lending: Commercial and industrial 204 148 Leasing 9 8 Owner occupied 247 158 --- --- Total commercial lending 460 314 Commercial real estate: Construction and land development 716 458 Term 76 44 --- --- Total commercial real estate 792 502 Consumer: Home equity credit line 4 4 1-4 family residential 91 49 Construction and other consumer real estate 52 44 Bankcard and other revolving plans 1 1 Other 3 3 --- --- Total consumer 151 101 --- --- Total nonaccrual loans $1,421 $947 ====== ==== Net Charge-Offs By Portfolio Type (in thousands) December 31, September 30, June 30, 2009 2009 2009 ---- ---- ---- Commercial lending: Commercial and industrial $35,431 $70,672 $116,777 Leasing 2,310 2,679 1,087 Owner occupied 27,044 19,082 9,218 Total commercial lending 64,785 92,433 127,082 Commercial real estate: Construction and land development 139,108 218,527 155,738 Term 56,173 29,059 11,134 Total commercial real estate 195,281 247,586 166,872 Consumer: Home equity credit line 3,783 5,742 3,285 1-4 family residential 13,717 17,671 23,693 Construction and other consumer real estate 10,000 9,831 17,321 Bankcard and other revolving plans 2,587 1,873 5,438 Other 4,252 6,134 3,786 Total consumer loans 34,339 41,251 53,523 Subtotal 294,405 381,270 347,477 Charge-offs recoverable from FDIC (2,303) - - Total net charge-offs $292,102 $381,270 $347,477 ======== ======== ======== Net Charge-Offs By Portfolio Type December (in thousands) March 31, 31, 2009 2008 ---- ---- Commercial lending: Commercial and industrial $30,318 $30,792 Leasing 213 487 Owner occupied 6,950 4,867 Total commercial lending 37,481 36,146 Commercial real estate: Construction and land development 79,864 122,284 Term 2,286 1,083 Total commercial real estate 82,150 123,367 Consumer: Home equity credit line 2,687 950 1-4 family residential 9,248 4,833 Construction and other consumer real estate 13,395 8,968 Bankcard and other revolving plans 1,968 1,229 Other 4,816 4,223 Total consumer loans 32,114 20,203 Subtotal 151,745 179,716 Charge-offs recoverable from FDIC - - Total net charge-offs $151,745 $179,716 ======== ======== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Three Months Ended December 31, 2009 ----------------- (In thousands) Average Amount of Average interest balance (1) rate ------- ----------- ---- ASSETS Money market investments $2,761,132 $1,800 0.26% Securities: Held-to-maturity 875,730 6,226 2.82% Available-for-sale 3,507,766 23,853 2.70% Trading account 67,900 492 2.87% ------ --- Total securities 4,451,396 30,571 2.72% --------- ------ Loans held for sale 208,219 2,735 5.21% Loans: Net loans and leases excluding FDIC-supported assets (2) 39,222,262 552,847 5.59% FDIC-supported assets 1,518,368 23,892 6.24% --------- ------ Total loans and leases 40,740,630 576,739 5.62% ---------- ------- Total interest-earning assets 48,161,377 611,845 5.04% ------- Cash and due from banks 1,191,881 Allowance for loan losses (1,497,873) Goodwill 1,017,361 Core deposit and other intangibles 120,512 Other assets 4,266,457 --------- Total assets $53,259,715 =========== LIABILITIES Interest-bearing deposits: Savings and NOW $5,505,938 5,265 0.38% Money market 17,247,187 38,656 0.89% Time under $100,000 2,637,651 11,857 1.78% Time $100,000 and over 3,575,690 13,821 1.53% Foreign 1,818,423 2,993 0.65% --------- ----- Total interest-bearing deposits 30,784,889 72,592 0.94% ---------- ------ Borrowed funds: Securities sold, not yet purchased 39,045 503 5.11% Federal funds purchased and security repurchase agreements 1,611,774 1,071 0.26% Commercial paper 2,125 5 0.93% FHLB advances and other borrowings: One year or less 89,891 1,135 5.01% Over one year 17,963 219 4.84% Long-term debt 2,230,949 73,712 13.11% --------- ------ Total borrowed funds 3,991,747 76,645 7.62% --------- ------ Total interest-bearing liabilities 34,776,636 149,237 1.70% ------- Noninterest-bearing deposits 12,151,870 Other liabilities 601,724 ------- Total liabilities 47,530,230 Shareholders' equity: Preferred equity 1,543,363 Common equity 4,166,944 --------- Controlling interest shareholders' equity 5,710,307 Noncontrolling interests 19,178 ------ Total shareholders' equity 5,729,485 --------- Total liabilities and shareholders' equity $53,259,715 =========== Spread on average interest- bearing funds 3.34% Taxable-equivalent net interest income and net yield on interest-earning assets $462,608 3.81% ======== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Three Months Ended September 30, 2009 (3) --------------------- (In thousands) Average Amount of Average interest balance (1) rate ------- ----------- ---- ASSETS Money market investments $1,861,523 $1,195 0.25% Securities: Held-to-maturity 914,648 13,797 5.98% Available-for-sale 3,749,566 26,275 2.78% Trading account 94,658 842 3.53% ------ --- Total securities 4,758,872 40,914 3.41% --------- ------ Loans held for sale 194,596 2,434 4.96% Loans: Net loans and leases excluding FDIC-supported assets (2) 40,246,789 570,652 5.63% FDIC-supported assets 1,494,857 22,562 5.99% --------- ------ Total loans and leases 41,741,646 593,214 5.64% ---------- ------- Total interest-earning assets 48,556,637 637,757 5.21% ------- Cash and due from banks 1,187,594 Allowance for loan losses (1,317,078) Goodwill 1,017,387 Core deposit and other intangibles 126,614 Other assets 3,923,371 --------- Total assets $53,494,525 =========== LIABILITIES Interest-bearing deposits: Savings and NOW $5,162,852 5,262 0.40% Money market 17,538,319 49,292 1.12% Time under $100,000 2,954,680 16,612 2.23% Time $100,000 and over 4,363,017 22,690 2.06% Foreign 1,901,789 3,478 0.73% --------- ----- Total interest-bearing deposits 31,920,657 97,334 1.21% ---------- ------ Borrowed funds: Securities sold, not yet purchased 45,866 590 5.10% Federal funds purchased and security repurchase agreements 1,708,888 1,207 0.28% Commercial paper 1,224 3 0.97% FHLB advances and other borrowings: One year or less 46,741 525 4.46% Over one year 18,854 228 4.80% Long-term debt 1,955,725 59,735 12.12% --------- ------ Total borrowed funds 3,777,298 62,288 6.54% --------- ------ Total interest-bearing liabilities 35,697,955 159,622 1.77% ------- Noninterest-bearing deposits 11,428,774 Other liabilities 517,200 ------- Total liabilities 47,643,929 Shareholders' equity: Preferred equity 1,518,289 Common equity 4,309,497 --------- Controlling interest shareholders' equity 5,827,786 Noncontrolling interests 22,810 ------ Total shareholders' equity 5,850,596 --------- Total liabilities and shareholders' equity $53,494,525 =========== Spread on average interest- bearing funds 3.44% Taxable-equivalent net interest income and net yield on interest-earning assets $478,135 3.91% ======== (1) Taxable-equivalent rates used where applicable. (2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. (3) Certain amounts were revised as previously discussed. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Year Ended December 31, 2009 ----------------- (In thousands) Average Amount of Average balance interest(1) rate ------- ---------- ---- ASSETS Money market investments $2,380,196 $7,914 0.33% Securities: Held-to-maturity 1,263,618 66,853 5.29% Available-for-sale 3,312,799 104,130 3.14% Trading account 74,642 2,728 3.65% ------ ----- Total securities 4,651,059 173,711 3.73% --------- ------- Loans held for sale 225,753 11,007 4.88% Loans: Net loans and leases excluding FDIC-supported assets (2) 40,454,590 2,281,589 5.64% FDIC-supported assets 1,058,476 64,418 6.09% --------- ------ Total loans and leases 41,513,066 2,346,007 5.65% ---------- --------- Total interest-earning assets 48,770,074 2,538,639 5.21% --------- Cash and due from banks 1,244,517 Allowance for loan losses (1,104,151) Goodwill 1,174,407 Core deposit and other intangibles 124,901 Other assets 3,838,576 --------- Total assets $54,048,324 =========== LIABILITIES Interest-bearing deposits: Savings and NOW $5,035,262 21,618 0.43% Money market 17,512,935 216,359 1.24% Time under $100,000 2,908,473 69,516 2.39% Time $100,000 and over 4,327,120 98,472 2.28% Foreign 2,010,476 18,719 0.93% --------- ------ Total interest-bearing deposits 31,794,266 424,684 1.34% ---------- ------- Borrowed funds: Securities sold, not yet purchased 41,573 2,169 5.22% Federal funds purchased and security repurchase agreements 1,922,896 5,719 0.30% Commercial paper 2,324 32 1.38% FHLB advances and other borrowings: One year or less 302,650 6,800 2.25% Over one year 49,747 2,726 5.48% Long-term debt 2,387,776 175,664 7.36% --------- ------- Total borrowed funds 4,706,966 193,110 4.10% --------- ------- Total interest-bearing liabilities 36,501,232 617,794 1.69% ------- Noninterest-bearing deposits 11,052,745 Other liabilities 557,949 ------- Total liabilities 48,111,926 Shareholders' equity: Preferred equity 1,558,046 Common equity 4,354,634 --------- Controlling interest shareholders' equity 5,912,680 Noncontrolling interests 23,718 ------ Total shareholders' equity 5,936,398 --------- Total liabilities and shareholders' equity $54,048,324 =========== Spread on average interest- bearing funds 3.52% Taxable-equivalent net interest income and net yield on interest-earning assets $1,920,845 3.94% ========== ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Year Ended December 31, 2008 ----------------- (In thousands) Average Amount of Average balance interest(1) rate ------- ---------- ---- ASSETS Money market investments $1,888,497 $47,780 2.53% Securities: Held-to-maturity 1,516,504 101,310 6.68% Available-for-sale 3,266,209 162,170 4.97% Trading account 42,521 1,875 4.41% ------ ----- Total securities 4,825,234 265,355 5.50% --------- ------- Loans held for sale 182,443 10,074 5.52% Loans: Net loans and leases excluding FDIC-supported assets (2) 40,794,781 2,674,412 6.56% FDIC-supported assets - - --- --- Total loans and leases 40,794,781 2,674,412 6.56% ---------- --------- Total interest-earning assets 47,690,955 2,997,621 6.29% --------- Cash and due from banks 1,380,571 Allowance for loan losses (546,095) Goodwill 1,936,865 Core deposit and other intangibles 136,698 Other assets 3,162,914 --------- Total assets $53,761,908 =========== LIABILITIES Interest-bearing deposits: Savings and NOW $4,446,182 35,538 0.80% Money market 13,738,814 335,030 2.44% Time under $100,000 2,694,891 96,194 3.57% Time $100,000 and over 4,382,386 161,918 3.69% Foreign 3,165,887 84,213 2.66% --------- ------ Total interest-bearing deposits 28,428,160 712,893 2.51% ---------- ------- Borrowed funds: Securities sold, not yet purchased 32,689 1,574 4.82% Federal funds purchased and security repurchase agreements 2,733,583 53,310 1.95% Commercial paper 109,609 4,212 3.84% FHLB advances and other borrowings: One year or less 4,588,834 119,779 2.61% Over one year 128,524 7,369 5.73% Long-term debt 2,448,991 103,116 4.21% --------- ------- Total borrowed funds 10,042,230 289,360 2.88% ---------- ------- Total interest-bearing liabilities 38,470,390 1,002,253 2.61% --------- Noninterest-bearing deposits 9,144,520 Other liabilities 578,231 ------- Total liabilities 48,193,141 Shareholders' equity: Preferred equity 431,936 Common equity 5,107,675 --------- Controlling interest shareholders' equity 5,539,611 Noncontrolling interests 29,156 ------ Total shareholders' equity 5,568,767 --------- Total liabilities and shareholders' equity $53,761,908 =========== Spread on average interest-bearing funds 3.68% Taxable-equivalent net interest income and net yield on interest-earning assets $1,995,368 4.18% ========== (1) Taxable-equivalent rates used where applicable. (2)Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. ZIONS BANCORPORATION AND SUBSIDIARIES Capital Ratios (Unaudited) December September December 31, 30, 31, 2009 2009 2008 ---- ---- ---- Tangible common equity ratio 6.12% 5.76% 5.89% Tangible equity ratio 9.16% 8.73% 8.91% Risk-based capital ratios(1): Tier 1 common to risk-weighted assets 6.50% 6.59% 6.28% Tier 1 risk-based capital 10.32% 10.34% 10.22% Total risk-based capital 13.05% 13.08% 14.32% (1) Ratios for December 31, 2009 are estimates.
Zions Bancorporation
CONTACT: James Abbott of Zions Bancorporation, +1-801-524-4787
Web Site: http://www.zionsbancorporation.com/
