Jan. 27, 2014
- Zions Bancorporation, the holding company for Zions Bank, reported annual net earnings for 2013 of $294 million, or $1.58 per share, compared to $179 million, or $0.97 per share, for 2012.
- Zions reported a fourth quarter net loss applicable to common shareholders of $(59.4) million, or $(0.32) per diluted common share, compared to net earnings of $209.7 million or $1.12 per diluted share for the third quarter of 2013. (The third quarter amount included a $126 million, or $0.68 per diluted share, increase to net earnings for the redemption of all of the Company’s Series C preferred stock.)
- The quarterly loss in the fourth quarter included impairment charges on collateralized debt obligation (CDO) securities as a result of both the company’s decision to reduce risk within its CDO portfolio, and the impact of the final provision of the Volcker Rule.
- The loss also included debt extinguishment costs that resulted from Zions’ successful tender offer for some of its high-cost subordinated debt.
- The total impairment charges and debt extinguishment costs were $222 million pretax, or $0.74 per diluted share.
- Loans and leases, excluding FDIC-supported loans, increased $795 million to $38.7 billion at Dec. 31, 2013.
- Average loans and leases, excluding FDIC-supported loans, increased $442 million.
- The increases were predominantly in commercial and industrial loans primarily in Texas and California, and in 1-4 family residential loans primarily in Texas and Utah.
- Average total deposits increased $0.7 billion, or 1%, to $46.3 billion in the fourth quarter.
- This increase was driven primarily by noninterest-bearing demand deposits, which increased to an average of $18.8 billion in the fourth quarter.
- Compared to the third quarter, tangible book value per share improved by 3% to $23.88; compared to the year-ago period, tangible book value per share improved by approximately 14%.
- Credit quality showed continued improvement in the fourth quarter.
- Nonperforming lending-related assets declined 16% to $453 million at Dec. 31, 2013, from $538 million at Sept. 30, 2013.
- Nonaccrual loans declined 14% to $407 million at Dec. 31, 2013.
- Classified loans, excluding FDIC-supported loans, decreased approximately 13% to $1.2 billion.
- Consistent with recent quarters, approximately 84% were current as to principal and interest.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.15% at Dec. 31, 2013, compared to 1.40% at Sept. 30, 2013.
- The continued improvement in credit quality resulted in a negative provision for loan losses of $31 million for the fourth quarter, compared to a negative provision of $6 million for the third quarter of 2013.
- As a percentage of net loans and leases, the allowance was 2.14% at Dec. 31, 2013.
- Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
- As of Dec. 31, 2013, Zions Bancorporation was carrying $746.3 million in allowances for loan losses on its balance sheet.
- Zions Bancorporation’s capital ratios remain well in excess of “well-capitalized” levels.
- The estimated common equity Tier 1 capital ratio was 10.15% at Dec. 31, 2013, compared to 10.47% at Sept. 30, 2013.
About Zions Bank
Zions Bank, a subsidiary of Zions Bancorporation (NASDAQ: ZION), is Utah’s oldest financial institution and operates 124 full-service financial centers in Utah, Idaho and Jackson, Wyoming. In addition to offering a wide range of traditional banking services, Zions Bank is also a leader in small business lending and has consistently ranked as the No. 1 lender of U.S. Small Business Administration 7(a) loans in Utah for the past 22 years and Idaho’s Boise District for the past 14 years. Founded in 1873, Zions Bank has been serving the communities of the Intermountain West for more than 140 years. Additional information is available at www.zionsbank.com.