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Zions Bank Press Release

Zions Bancorporation Reports 2012 Fourth Quarter Results

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Zions Bancorporation Reports 2012 Fourth Quarter Results

Eighth Consecutive Quarter of Profitability With Earnings of $0.19 Per Share

  • Zions Bancorporation, the holding company for Zions Bank, reported fourth quarter net earnings applicable to common shareholders of $35.6 million or $0.19 per diluted common share, compared to $62.3 million or $0.34 per diluted share for the third quarter.
    • Earnings in the fourth quarter were adversely affected by a net amount of $73.6 million pretax, or $0.25 per share, consisting of $83.8 million of other-than-temporary impairment (OTTI) on collateralized debt obligation (CDO) securities, partially offset by $10.2 million of CDO securities gains.
  • Loans and leases, excluding FDIC-supported loans, increased $463 million, or an annualized 5%, to $37.1 billion at Dec. 31, 2012.
    • Average loans and leases, excluding FDIC-supported loans, increased only $100 million, as most of the loan growth occurred near quarter-end.
    • The increases were predominantly in commercial and industrial and 1-4 family residential loans, and were widespread geographically.
  • Average total deposits increased $1.4 billion, or 3.3%, to $44.9 billion in the fourth quarter.


  • Tangible common equity per common share improved $0.71 to $20.95 from $20.24 in the third quarter.


  • Credit quality continued to improve in the fourth quarter. All major indicators improved, including net charge-offs, nonperforming assets, delinquent loans, and classified loans (loans with a well-defined weakness).
    • Net charge-offs decreased 51% to $19 million compared to $38 million in the third quarter of 2012. Gross charge-offs declined 7% compared to the third quarter and have declined 55% compared to a year ago.

    • Zionsí net charge-offs to loans ratio ranks among the best 10% in our peer group.

    • Nonperforming lending-related assets declined 11% to $746 million at Dec. 31, 2012.

    • Nonaccrual loans declined 10% to $647 million at Dec. 31, 2012.

    • Classified loans, excluding FDIC-supported loans, decreased approximately 2% to $1.77 billion.

    • Approximately 79% of classified loans were current as to principal and interest for the fourth quarter, compared to 76% for the third quarter of 2012.

    • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.96% at Dec. 31, 2012, compared to 2.23% at Sept. 30, 2012.

  • The continued improvement in credit quality resulted in a fourth quarter provision (credit) for loan losses of $(10.4) million, compared to $(1.9) million for the third quarter of 2012.
    • As a percentage of net loans and leases, the allowance was 2.66% at Dec. 31, 2012.
    • Zionsí loan loss reserves rank among the strongest 5% of our peer group.
    • As of Dec. 31, 2012, Zions Bancorporation was carrying $1.0 billion in allowances for loan losses on its balance sheet.
  • Zions Bancorporationís capital ratios remain well in excess of “well-capitalized” levels.
    • The estimated common equity Tier 1 capital ratio was 9.78% at Dec. 31, 2012, compared to 9.86% in the third quarter.

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