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Zions Bank Press Release

Zions Bancorporation Reports 2011 Fourth Quarter Results

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Zions Bancorporation Reports 2011 Fourth Quarter Results

Zions Bancorporation, the holding company for Zions Bank, reported fourth quarter net earnings applicable to common shareholders of $44.4 million or $0.24 per diluted common share, compared to $65.2 million or $0.35 per diluted share for the third quarter of 2011.

Following are selected highlights from the fourth quarter 2011 Zions Bancorporation earnings release:

  • Zions Bancorporation, the holding company for Zions Bank, reported fourth quarter net earnings applicable to common shareholders of $44.4 million or $0.24 per diluted common share, compared to $65.2 million or $0.35 per diluted share for the third quarter of 2011.
    • Excluding the noncash effects of the discount amortization on convertible subordinated debt and additional accretion on acquired loans, net earnings were $53.5 million or $0.30 per diluted share for the fourth quarter compared to $74.8 million or $0.40 per diluted share for the third quarter.

  • Zions Bancorporation's total capital ratios remain at record-high levels.
    • The estimated Tier 1 common to risk-weighted assets ratio was 9.55% at Dec. 31, 2011, compared to 9.53% in the third quarter. Compared to a year ago, the ratio has improved from 8.95%.

  • Net charge-offs decreased 7% to $95 million compared to $102 million in the third quarter.

  • Classified loans decreased approximately 13% compared to the third quarter. Classified loan balances (at $2.1 billion at Dec. 31, 2011) have now declined for seven straight quarters and are down cumulatively $3.2 billion from their peak in the first quarter of 2010, a reduction of 60%.

  • Nonperforming lending-related assets continued to decline, down approximately 16% to $1.1 billion from $1.3 billion in the third quarter.
    • Nonaccrual loans declined approximately 15% to $0.9 billion at Dec. 31, 2011, from $1.1 billion at Sept. 30, 2011.
    • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 2.83% at Dec. 31, 2011, compared to 3.43% at Sept. 30, 2011.
    • OREO declined approximately 25% to $153 million at Dec. 31, 2011, compared to $203 million at Sept. 30, 2011 — its lowest level in more than two years.

  • The company had a negative provision for loan losses, $(1.5) million, for the fourth quarter, compared to a provision of $14.6 million for the third quarter. The decline mainly resulted from improvement in the credit quality indicators in the quarter.
    • As a percentage of net loans and leases, the allowance was 3.10% at Dec. 31, 2011.
    • Zions' allowance to net charge-offs ratio continues to rank among the strongest of U.S. regional banks.
    • The allowance for credit losses was 127% of nonaccrual loans at Dec. 31, 2011.
    • As of Dec. 31, 2011, Zions Bancorporation was carrying $1.05 billion in allowances for loan losses on its balance sheet.

  • The core banking business of Zions Bancorporation remains strong.
    • Average total deposits for the fourth quarter increased $804 million (or 1.9%) to $42.2 billion, compared to $41.4 billion for the third quarter. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the fourth quarter.
    • Average loans and leases, excluding FDIC-supported loans, increased $158 million (or 0.4%) to $36.1 billion during the fourth quarter, compared to an increase of $4 million during the third quarter. Net increases in commercial and industrial loans, along with increases in term commercial real estate, were offset by decreases in construction and land development, commercial owner occupied, and FDIC-supported loans.

To view the entire press release click here.

 
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