ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
UTAH
|
87-0227400
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
One South Main, 15
th
Floor
Salt Lake City, Utah
|
84133
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
ý
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
Common Stock, without par value, outstanding at July 31, 2013
|
184,522,379 shares
|
|
|
|
|
|
Page
|
|
||
|
|
|
Item 1.
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
|
Signatures
|
ITEM 1.
|
FINANCIAL STATEMENTS
(Unaudited)
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|||||||
(In thousands, except share amounts)
|
June 30, 2013
|
|
December 31, 2012
|
||||
(Unaudited)
|
|
|
|||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
1,183,097
|
|
|
$
|
1,841,907
|
|
Money market investments:
|
|
|
|
||||
Interest-bearing deposits
|
8,180,010
|
|
|
5,978,978
|
|
||
Federal funds sold and security resell agreements
|
221,799
|
|
|
2,775,354
|
|
||
Investment securities:
|
|
|
|
||||
Held-to-maturity, at adjusted cost (approximate fair value $734,292 and $674,741)
|
783,371
|
|
|
756,909
|
|
||
Available-for-sale, at fair value
|
3,193,395
|
|
|
3,091,310
|
|
||
Trading account, at fair value
|
26,385
|
|
|
28,290
|
|
||
|
4,003,151
|
|
|
3,876,509
|
|
||
|
|
|
|
||||
Loans held for sale
|
164,619
|
|
|
251,651
|
|
||
Loans, net of unearned income and fees:
|
|
|
|
||||
Loans and leases
|
37,756,010
|
|
|
37,137,006
|
|
||
FDIC-supported loans
|
431,935
|
|
|
528,241
|
|
||
|
38,187,945
|
|
|
37,665,247
|
|
||
Less allowance for loan losses
|
813,912
|
|
|
896,087
|
|
||
Loans, net of allowance
|
37,374,033
|
|
|
36,769,160
|
|
||
|
|
|
|
||||
Other noninterest-bearing investments
|
852,939
|
|
|
855,462
|
|
||
Premises and equipment, net
|
717,299
|
|
|
708,882
|
|
||
Goodwill
|
1,014,129
|
|
|
1,014,129
|
|
||
Core deposit and other intangibles
|
43,239
|
|
|
50,818
|
|
||
Other real estate owned
|
80,789
|
|
|
98,151
|
|
||
Other assets
|
1,069,436
|
|
|
1,290,917
|
|
||
|
$
|
54,904,540
|
|
|
$
|
55,511,918
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
17,803,950
|
|
|
$
|
18,469,458
|
|
Interest-bearing:
|
|
|
|
||||
Savings and money market
|
22,887,404
|
|
|
22,896,624
|
|
||
Time
|
2,810,431
|
|
|
2,962,931
|
|
||
Foreign
|
1,514,270
|
|
|
1,804,060
|
|
||
|
45,016,055
|
|
|
46,133,073
|
|
||
|
|
|
|
||||
Securities sold, not yet purchased
|
15,799
|
|
|
26,735
|
|
||
Federal funds purchased and security repurchase agreements
|
240,816
|
|
|
320,478
|
|
||
Other short-term borrowings
|
—
|
|
|
5,409
|
|
||
Long-term debt
|
2,173,176
|
|
|
2,337,113
|
|
||
Reserve for unfunded lending commitments
|
104,082
|
|
|
106,809
|
|
||
Other liabilities
|
494,280
|
|
|
533,660
|
|
||
Total liabilities
|
48,044,208
|
|
|
49,463,277
|
|
||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, without par value, authorized 4,400,000 shares
|
1,728,659
|
|
|
1,128,302
|
|
||
Common stock, without par value; authorized 350,000,000 shares; issued
and outstanding 184,436,656 and 184,199,198 shares
|
4,167,828
|
|
|
4,166,109
|
|
||
Retained earnings
|
1,338,401
|
|
|
1,203,815
|
|
||
Accumulated other comprehensive income (loss)
|
(374,556
|
)
|
|
(446,157
|
)
|
||
Controlling interest shareholders’ equity
|
6,860,332
|
|
|
6,052,069
|
|
||
Noncontrolling interests
|
—
|
|
|
(3,428
|
)
|
||
Total shareholders’ equity
|
6,860,332
|
|
|
6,048,641
|
|
||
|
$
|
54,904,540
|
|
|
$
|
55,511,918
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|||||||||||||||
(In thousands, except per share amounts)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
460,308
|
|
|
$
|
472,926
|
|
|
$
|
913,741
|
|
|
$
|
954,720
|
|
Interest on money market investments
|
5,764
|
|
|
5,099
|
|
|
11,203
|
|
|
9,727
|
|
||||
Interest on securities:
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity
|
7,846
|
|
|
9,325
|
|
|
15,820
|
|
|
18,284
|
|
||||
Available-for-sale
|
19,028
|
|
|
25,090
|
|
|
36,740
|
|
|
48,248
|
|
||||
Trading account
|
287
|
|
|
148
|
|
|
477
|
|
|
486
|
|
||||
Total interest income
|
493,233
|
|
|
512,588
|
|
|
977,981
|
|
|
1,031,465
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
15,143
|
|
|
20,823
|
|
|
30,785
|
|
|
44,236
|
|
||||
Interest on short-term borrowings
|
78
|
|
|
256
|
|
|
170
|
|
|
1,035
|
|
||||
Interest on long-term debt
|
47,355
|
|
|
65,165
|
|
|
98,254
|
|
|
122,372
|
|
||||
Total interest expense
|
62,576
|
|
|
86,244
|
|
|
129,209
|
|
|
167,643
|
|
||||
Net interest income
|
430,657
|
|
|
426,344
|
|
|
848,772
|
|
|
863,822
|
|
||||
Provision for loan losses
|
(21,990
|
)
|
|
10,853
|
|
|
(51,025
|
)
|
|
26,517
|
|
||||
Net interest income after provision for loan losses
|
452,647
|
|
|
415,491
|
|
|
899,797
|
|
|
837,305
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposit accounts
|
44,329
|
|
|
43,426
|
|
|
87,909
|
|
|
86,958
|
|
||||
Other service charges, commissions and fees
|
45,888
|
|
|
44,197
|
|
|
88,619
|
|
|
83,244
|
|
||||
Trust and wealth management income
|
7,732
|
|
|
8,057
|
|
|
14,726
|
|
|
14,431
|
|
||||
Capital markets and foreign exchange
|
6,740
|
|
|
7,342
|
|
|
14,226
|
|
|
13,076
|
|
||||
Dividends and other investment income
|
11,339
|
|
|
21,542
|
|
|
24,063
|
|
|
31,022
|
|
||||
Loan sales and servicing income
|
10,723
|
|
|
10,287
|
|
|
21,674
|
|
|
18,639
|
|
||||
Fair value and nonhedge derivative loss
|
(2,957
|
)
|
|
(6,784
|
)
|
|
(8,402
|
)
|
|
(11,184
|
)
|
||||
Equity securities gains, net
|
2,209
|
|
|
107
|
|
|
5,041
|
|
|
9,252
|
|
||||
Fixed income securities gains (losses), net
|
(1,153
|
)
|
|
5,519
|
|
|
2,146
|
|
|
6,239
|
|
||||
Impairment losses on investment securities:
|
|
|
|
|
|
|
|
||||||||
Impairment losses on investment securities
|
(4,910
|
)
|
|
(24,026
|
)
|
|
(36,403
|
)
|
|
(42,299
|
)
|
||||
Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income)
|
693
|
|
|
16,718
|
|
|
22,069
|
|
|
24,782
|
|
||||
Net impairment losses on investment securities
|
(4,217
|
)
|
|
(7,308
|
)
|
|
(14,334
|
)
|
|
(17,517
|
)
|
||||
Other
|
4,515
|
|
|
2,280
|
|
|
10,699
|
|
|
6,325
|
|
||||
Total noninterest income
|
125,148
|
|
|
128,665
|
|
|
246,367
|
|
|
240,485
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
227,328
|
|
|
220,765
|
|
|
457,117
|
|
|
445,399
|
|
||||
Occupancy, net
|
27,951
|
|
|
28,169
|
|
|
55,340
|
|
|
56,120
|
|
||||
Equipment, software and furniture
|
26,545
|
|
|
27,302
|
|
|
52,619
|
|
|
54,094
|
|
||||
Other real estate expense
|
1,590
|
|
|
6,440
|
|
|
3,567
|
|
|
14,250
|
|
||||
Credit-related expense
|
9,397
|
|
|
12,415
|
|
|
19,879
|
|
|
25,900
|
|
||||
Provision for unfunded lending commitments
|
3,627
|
|
|
4,868
|
|
|
(2,727
|
)
|
|
1,164
|
|
||||
Professional and legal services
|
17,149
|
|
|
12,947
|
|
|
27,620
|
|
|
24,043
|
|
||||
Advertising
|
5,807
|
|
|
6,618
|
|
|
11,700
|
|
|
12,425
|
|
||||
FDIC premiums
|
10,124
|
|
|
10,444
|
|
|
19,835
|
|
|
21,363
|
|
||||
Amortization of core deposit and other intangibles
|
3,762
|
|
|
4,262
|
|
|
7,581
|
|
|
8,553
|
|
||||
Debt extinguishment cost
|
40,282
|
|
|
—
|
|
|
40,282
|
|
|
—
|
|
||||
Other
|
78,116
|
|
|
67,426
|
|
|
156,213
|
|
|
130,717
|
|
||||
Total noninterest expense
|
451,678
|
|
|
401,656
|
|
|
849,026
|
|
|
794,028
|
|
||||
Income before income taxes
|
126,117
|
|
|
142,500
|
|
|
297,138
|
|
|
283,762
|
|
||||
Income taxes
|
43,091
|
|
|
51,036
|
|
|
103,725
|
|
|
102,895
|
|
||||
Net income
|
83,026
|
|
|
91,464
|
|
|
193,413
|
|
|
180,867
|
|
||||
Net loss applicable to noncontrolling interests
|
—
|
|
|
(273
|
)
|
|
(336
|
)
|
|
(546
|
)
|
||||
Net income applicable to controlling interest
|
83,026
|
|
|
91,737
|
|
|
193,749
|
|
|
181,413
|
|
||||
Preferred stock dividends
|
(27,641
|
)
|
|
(36,522
|
)
|
|
(50,040
|
)
|
|
(100,709
|
)
|
||||
Net earnings applicable to common shareholders
|
$
|
55,385
|
|
|
$
|
55,215
|
|
|
$
|
143,709
|
|
|
$
|
80,704
|
|
Weighted average common shares outstanding during the period:
|
|
|
|
|
|
|
|
||||||||
Basic shares
|
183,647
|
|
|
182,985
|
|
|
183,522
|
|
|
182,892
|
|
||||
Diluted shares
|
184,062
|
|
|
183,137
|
|
|
183,863
|
|
|
183,050
|
|
||||
Net earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.78
|
|
|
$
|
0.44
|
|
Diluted
|
0.30
|
|
|
0.30
|
|
|
0.77
|
|
|
0.44
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
||||||||||||||||
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
83,026
|
|
|
$
|
91,464
|
|
|
$
|
193,413
|
|
|
$
|
180,867
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains on investment securities
|
|
29,300
|
|
|
6,431
|
|
|
78,096
|
|
|
29,045
|
|
||||
Noncredit-related impairment losses on securities not expected to be sold
|
|
(130
|
)
|
|
(10,323
|
)
|
|
(12,884
|
)
|
|
(15,303
|
)
|
||||
Reclassification to earnings for realized net fixed income securities losses (gains)
|
|
712
|
|
|
(3,481
|
)
|
|
(1,325
|
)
|
|
(3,987
|
)
|
||||
Reclassification to earnings for net credit-related impairment losses on investment securities
|
|
2,549
|
|
|
4,302
|
|
|
8,548
|
|
|
10,606
|
|
||||
Accretion of securities with noncredit-related impairment losses not expected to be sold
|
|
386
|
|
|
367
|
|
|
595
|
|
|
532
|
|
||||
Net unrealized holding gains (losses) on derivative instruments
|
|
(1
|
)
|
|
56
|
|
|
(3
|
)
|
|
177
|
|
||||
Reclassification adjustment for decrease (increase) in interest income recognized in earnings on derivative instruments
|
|
(469
|
)
|
|
(1,932
|
)
|
|
(1,426
|
)
|
|
(5,133
|
)
|
||||
Other comprehensive income (loss)
|
|
32,347
|
|
|
(4,580
|
)
|
|
71,601
|
|
|
15,937
|
|
||||
Comprehensive income
|
|
115,373
|
|
|
86,884
|
|
|
265,014
|
|
|
196,804
|
|
||||
Comprehensive loss applicable to noncontrolling interests
|
|
—
|
|
|
(273
|
)
|
|
(336
|
)
|
|
(546
|
)
|
||||
Comprehensive income applicable to controlling interest
|
|
$
|
115,373
|
|
|
$
|
87,157
|
|
|
$
|
265,350
|
|
|
$
|
197,350
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSO
LIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
|
||||||||||||||||||||||||||||||
(In thousands, except share
and per share amounts)
|
Preferred
stock
|
|
Common stock
|
|
Retained earnings
|
|
Accumulated
other
comprehensive income (loss)
|
|
Noncontrolling interests
|
|
Total
shareholders’ equity
|
|||||||||||||||||||
Shares
|
|
Amount
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2012
|
$
|
1,128,302
|
|
|
184,199,198
|
|
|
$
|
4,166,109
|
|
|
$
|
1,203,815
|
|
|
|
$
|
(446,157
|
)
|
|
|
|
$
|
(3,428
|
)
|
|
|
$
|
6,048,641
|
|
Net income (loss) for the period
|
|
|
|
|
|
|
193,749
|
|
|
|
|
|
|
|
(336
|
)
|
|
|
193,413
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
71,601
|
|
|
|
|
|
|
|
71,601
|
|
|||||||||||
Issuance of preferred stock
|
598,941
|
|
|
|
|
(11,016
|
)
|
|
|
|
|
|
|
|
|
|
|
|
587,925
|
|
||||||||||
Subordinated debt converted to preferred stock
|
1,416
|
|
|
|
|
(206
|
)
|
|
|
|
|
|
|
|
|
|
|
|
1,210
|
|
||||||||||
Net activity under employee plans and related tax benefits
|
|
|
237,458
|
|
|
17,107
|
|
|
|
|
|
|
|
|
|
|
|
|
17,107
|
|
||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(50,040
|
)
|
|
|
|
|
|
|
|
|
|
(50,040
|
)
|
||||||||||
Dividends on common stock, $0.05 per share
|
|
|
|
|
|
|
(9,239
|
)
|
|
|
|
|
|
|
|
|
|
(9,239
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
116
|
|
|
|
|
|
|
|
|
|
|
116
|
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
(4,166
|
)
|
|
|
|
|
|
|
|
|
3,764
|
|
|
|
(402
|
)
|
||||||||||
Balance at June 30, 2013
|
$
|
1,728,659
|
|
|
184,436,656
|
|
|
$
|
4,167,828
|
|
|
$
|
1,338,401
|
|
|
|
$
|
(374,556
|
)
|
|
|
|
$
|
—
|
|
|
|
$
|
6,860,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2011
|
$
|
2,377,560
|
|
|
184,135,388
|
|
|
$
|
4,163,242
|
|
|
$
|
1,036,590
|
|
|
|
$
|
(592,084
|
)
|
|
|
|
$
|
(2,080
|
)
|
|
|
$
|
6,983,228
|
|
Net income (loss) for the period
|
|
|
|
|
|
|
181,413
|
|
|
|
|
|
|
|
(546
|
)
|
|
|
180,867
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
15,937
|
|
|
|
|
|
|
|
15,937
|
|
|||||||||||
Issuance of preferred stock
|
143,750
|
|
|
|
|
(2,408
|
)
|
|
|
|
|
|
|
|
|
|
|
|
141,342
|
|
||||||||||
Preferred stock redemption
|
(842,500
|
)
|
|
|
|
3,830
|
|
|
(3,830
|
)
|
|
|
|
|
|
|
|
|
|
(842,500
|
)
|
|||||||||
Subordinated debt converted to preferred stock
|
93,568
|
|
|
|
|
(13,602
|
)
|
|
|
|
|
|
|
|
|
|
|
|
79,966
|
|
||||||||||
Net activity under employee plans and related tax benefits
|
|
|
(17,866
|
)
|
|
6,463
|
|
|
|
|
|
|
|
|
|
|
|
|
6,463
|
|
||||||||||
Dividends on preferred stock
|
28,095
|
|
|
|
|
|
|
(100,709
|
)
|
|
|
|
|
|
|
|
|
|
(72,614
|
)
|
||||||||||
Dividends on common stock, $0.02 per share
|
|
|
|
|
|
|
(3,704
|
)
|
|
|
|
|
|
|
|
|
|
(3,704
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
360
|
|
|
|
|
|
|
|
|
|
|
360
|
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
18
|
|
|||||||||||
Balance at June 30, 2012
|
$
|
1,800,473
|
|
|
184,117,522
|
|
|
$
|
4,157,525
|
|
|
$
|
1,110,120
|
|
|
|
$
|
(576,147
|
)
|
|
|
|
$
|
(2,608
|
)
|
|
|
$
|
6,489,363
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|||||||||||||||
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net income for the period
|
$
|
83,026
|
|
|
$
|
91,464
|
|
|
$
|
193,413
|
|
|
$
|
180,867
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
||||||||
Debt extinguishment cost
|
40,282
|
|
|
—
|
|
|
40,282
|
|
|
—
|
|
||||
Net impairment losses on investment securities
|
4,217
|
|
|
7,308
|
|
|
14,334
|
|
|
17,517
|
|
||||
Provision for credit losses
|
(18,363
|
)
|
|
15,721
|
|
|
(53,752
|
)
|
|
27,681
|
|
||||
Depreciation and amortization
|
45,526
|
|
|
62,166
|
|
|
91,759
|
|
|
119,309
|
|
||||
Deferred income tax expense (benefit)
|
(7,726
|
)
|
|
(630
|
)
|
|
(6,444
|
)
|
|
19,055
|
|
||||
Net decrease (increase) in trading securities
|
1,882
|
|
|
(1,506
|
)
|
|
1,871
|
|
|
19,734
|
|
||||
Net decrease in loans held for sale
|
33,450
|
|
|
50,464
|
|
|
123,446
|
|
|
71,377
|
|
||||
Net write-downs of and gains/losses from sales of
other real estate owned
|
439
|
|
|
5,509
|
|
|
492
|
|
|
13,341
|
|
||||
Change in other liabilities
|
2,967
|
|
|
(11,731
|
)
|
|
(45,510
|
)
|
|
(30,530
|
)
|
||||
Change in other assets
|
121,095
|
|
|
38,398
|
|
|
172,675
|
|
|
88,823
|
|
||||
Other, net
|
4,299
|
|
|
3,544
|
|
|
(11,206
|
)
|
|
(18,372
|
)
|
||||
Net cash provided by operating activities
|
311,094
|
|
|
260,707
|
|
|
521,360
|
|
|
508,802
|
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net decrease (increase) in money market investments
|
(276,364
|
)
|
|
(288,671
|
)
|
|
352,523
|
|
|
(847,650
|
)
|
||||
Proceeds from maturities and paydowns of investment securities
held-to-maturity
|
27,825
|
|
|
34,106
|
|
|
81,437
|
|
|
54,685
|
|
||||
Purchases of investment securities held-to-maturity
|
(74,168
|
)
|
|
(24,461
|
)
|
|
(119,968
|
)
|
|
(33,738
|
)
|
||||
Proceeds from sales, maturities, and paydowns of investment securities available-for-sale
|
259,273
|
|
|
235,192
|
|
|
618,496
|
|
|
676,174
|
|
||||
Purchases of investment securities available-for-sale
|
(124,146
|
)
|
|
(187,627
|
)
|
|
(611,121
|
)
|
|
(593,930
|
)
|
||||
Proceeds from sales of loans and leases
|
5,046
|
|
|
13,478
|
|
|
11,057
|
|
|
39,787
|
|
||||
Net loan and lease collections (originations)
|
(497,110
|
)
|
|
(397,181
|
)
|
|
(631,947
|
)
|
|
18,230
|
|
||||
Net decrease in other noninterest-bearing investments
|
12,646
|
|
|
6,445
|
|
|
20,034
|
|
|
12,174
|
|
||||
Net purchases of premises and equipment
|
(26,733
|
)
|
|
(17,655
|
)
|
|
(42,533
|
)
|
|
(32,817
|
)
|
||||
Proceeds from sales of other real estate owned
|
24,685
|
|
|
58,485
|
|
|
52,659
|
|
|
97,884
|
|
||||
Net cash paid for divestitures
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,568
|
)
|
||||
Net cash used in investing activities
|
(669,046
|
)
|
|
(567,889
|
)
|
|
(269,363
|
)
|
|
(631,769
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in deposits
|
525,860
|
|
|
61,160
|
|
|
(1,117,018
|
)
|
|
313,997
|
|
||||
Net change in short-term funds borrowed
|
(70,154
|
)
|
|
318,039
|
|
|
(96,007
|
)
|
|
149,208
|
|
||||
Proceeds from issuance of long-term debt
|
348,585
|
|
|
266,636
|
|
|
367,947
|
|
|
599,386
|
|
||||
Repayments of long-term debt
|
(551,616
|
)
|
|
(255,038
|
)
|
|
(570,014
|
)
|
|
(255,179
|
)
|
||||
Debt extinguishment cost paid
|
(23,305
|
)
|
|
—
|
|
|
(23,305
|
)
|
|
—
|
|
||||
Cash paid for preferred stock redemption
|
—
|
|
|
(142,500
|
)
|
|
—
|
|
|
(842,500
|
)
|
||||
Proceeds from issuances of common and preferred stock
|
423,118
|
|
|
141,661
|
|
|
592,517
|
|
|
142,003
|
|
||||
Dividends paid on common and preferred stock
|
(35,047
|
)
|
|
(35,522
|
)
|
|
(59,279
|
)
|
|
(76,318
|
)
|
||||
Other, net
|
(5,209
|
)
|
|
(4,767
|
)
|
|
(5,648
|
)
|
|
(7,307
|
)
|
||||
Net cash provided by (used in) financing activities
|
612,232
|
|
|
349,669
|
|
|
(910,807
|
)
|
|
23,290
|
|
||||
Net increase (decrease) in cash and due from banks
|
254,280
|
|
|
42,487
|
|
|
(658,810
|
)
|
|
(99,677
|
)
|
||||
Cash and due from banks at beginning of period
|
928,817
|
|
|
1,082,186
|
|
|
1,841,907
|
|
|
1,224,350
|
|
||||
Cash and due from banks at end of period
|
$
|
1,183,097
|
|
|
$
|
1,124,673
|
|
|
$
|
1,183,097
|
|
|
$
|
1,124,673
|
|
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest
|
$
|
41,782
|
|
|
$
|
44,539
|
|
|
$
|
103,913
|
|
|
$
|
107,328
|
|
Net cash paid for income taxes
|
120,438
|
|
|
81,352
|
|
|
124,003
|
|
|
59,684
|
|
1.
|
BASIS OF PRESENTATION
|
2.
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Loans transferred to other real estate owned
|
$
|
17,376
|
|
|
$
|
51,724
|
|
|
$
|
40,818
|
|
|
$
|
104,299
|
|
Beneficial conversion feature transferred from common stock to preferred stock as a result of subordinated debt conversions
|
37
|
|
|
8,537
|
|
|
206
|
|
|
13,602
|
|
||||
Subordinated debt converted to preferred stock
|
219
|
|
|
50,192
|
|
|
1,210
|
|
|
79,966
|
|
3.
|
CASH AND MONEY MARKET INVESTMENTS
|
|
|
June 30, 2013
|
||||||||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
Gross amounts not offset in the balance sheet
|
|
|
||||||||||||||
Description
|
|
Gross amounts recognized
|
|
Gross amounts offset in the balance sheet
|
|
Net amounts presented in the balance sheet
|
|
Financial instruments
|
|
Cash collateral received/pledged
|
|
Net amount
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds sold and security resell agreements
|
|
$
|
771,799
|
|
|
$
|
(550,000
|
)
|
|
$
|
221,799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
221,799
|
|
Derivatives (included in other assets)
|
|
59,457
|
|
|
—
|
|
|
59,457
|
|
|
(8,389
|
)
|
|
(1,803
|
)
|
|
49,265
|
|
||||||
|
|
$
|
831,256
|
|
|
$
|
(550,000
|
)
|
|
$
|
281,256
|
|
|
$
|
(8,389
|
)
|
|
$
|
(1,803
|
)
|
|
$
|
271,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds purchased and security repurchase agreements
|
|
$
|
790,816
|
|
|
$
|
(550,000
|
)
|
|
$
|
240,816
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
240,816
|
|
Derivatives (included in other liabilities)
|
|
64,862
|
|
|
—
|
|
|
64,862
|
|
|
(8,389
|
)
|
|
(41,059
|
)
|
|
15,414
|
|
||||||
|
|
$
|
855,678
|
|
|
$
|
(550,000
|
)
|
|
$
|
305,678
|
|
|
$
|
(8,389
|
)
|
|
$
|
(41,059
|
)
|
|
$
|
256,230
|
|
|
|
December 31, 2012
|
||||||||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
Gross amounts not offset in the balance sheet
|
|
|
||||||||||||||
Description
|
|
Gross amounts recognized
|
|
Gross amounts offset in the balance sheet
|
|
Net amounts presented in the balance sheet
|
|
Financial instruments
|
|
Cash collateral received/pledged
|
|
Net amount
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds sold and security resell agreements
|
|
$
|
3,675,354
|
|
|
$
|
(900,000
|
)
|
|
$
|
2,775,354
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,775,354
|
|
Derivatives (included in other assets)
|
|
81,810
|
|
|
—
|
|
|
81,810
|
|
|
(409
|
)
|
|
—
|
|
|
81,401
|
|
||||||
|
|
$
|
3,757,164
|
|
|
$
|
(900,000
|
)
|
|
$
|
2,857,164
|
|
|
$
|
(409
|
)
|
|
$
|
—
|
|
|
$
|
2,856,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds purchased and security repurchase agreements
|
|
$
|
1,220,478
|
|
|
$
|
(900,000
|
)
|
|
$
|
320,478
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320,478
|
|
Derivatives (included in other liabilities)
|
|
89,100
|
|
|
—
|
|
|
89,100
|
|
|
(409
|
)
|
|
(81,683
|
)
|
|
7,008
|
|
||||||
|
|
$
|
1,309,578
|
|
|
$
|
(900,000
|
)
|
|
$
|
409,578
|
|
|
$
|
(409
|
)
|
|
$
|
(81,683
|
)
|
|
$
|
327,486
|
|
4.
|
INVESTMENT SECURITIES
|
|
June 30, 2013
|
||||||||||||||||||||||||||
|
|
|
Recognized in OCI
|
|
|
|
Not recognized in OCI
|
|
|
||||||||||||||||||
(In thousands)
|
Amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Carrying
value
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
$
|
564,212
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
564,212
|
|
|
$
|
11,600
|
|
|
$
|
4,654
|
|
|
$
|
571,158
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
255,199
|
|
|
—
|
|
|
55,054
|
|
|
200,145
|
|
|
7,216
|
|
|
56,129
|
|
|
151,232
|
|
|||||||
Other
|
21,135
|
|
|
—
|
|
|
2,221
|
|
|
18,914
|
|
|
906
|
|
|
8,018
|
|
|
11,802
|
|
|||||||
Other debt securities
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
|
840,646
|
|
|
—
|
|
|
57,275
|
|
|
783,371
|
|
|
19,722
|
|
|
68,801
|
|
|
734,292
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
39,879
|
|
|
163
|
|
|
—
|
|
|
40,042
|
|
|
|
|
|
|
40,042
|
|
|||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agency securities
|
264,377
|
|
|
2,542
|
|
|
306
|
|
|
266,613
|
|
|
|
|
|
|
266,613
|
|
|||||||||
Agency guaranteed mortgage-backed securities
|
334,733
|
|
|
12,254
|
|
|
536
|
|
|
346,451
|
|
|
|
|
|
|
346,451
|
|
|||||||||
Small Business Administration loan-backed securities
|
1,093,606
|
|
|
36,421
|
|
|
503
|
|
|
1,129,524
|
|
|
|
|
|
|
1,129,524
|
|
|||||||||
Municipal securities
|
65,732
|
|
|
1,737
|
|
|
1,090
|
|
|
66,379
|
|
|
|
|
|
|
66,379
|
|
|||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
1,546,091
|
|
|
14,038
|
|
|
529,836
|
|
|
1,030,293
|
|
|
|
|
|
|
1,030,293
|
|
|||||||||
Trust preferred securities – real estate investment trusts
|
40,441
|
|
|
—
|
|
|
21,942
|
|
|
18,499
|
|
|
|
|
|
|
18,499
|
|
|||||||||
Auction rate securities
|
6,506
|
|
|
92
|
|
|
44
|
|
|
6,554
|
|
|
|
|
|
|
6,554
|
|
|||||||||
Other
|
22,287
|
|
|
495
|
|
|
2,311
|
|
|
20,471
|
|
|
|
|
|
|
20,471
|
|
|||||||||
|
3,413,652
|
|
|
67,742
|
|
|
556,568
|
|
|
2,924,826
|
|
|
|
|
|
|
2,924,826
|
|
|||||||||
Mutual funds and other
|
276,383
|
|
|
69
|
|
|
7,883
|
|
|
268,569
|
|
|
|
|
|
|
268,569
|
|
|||||||||
|
3,690,035
|
|
|
67,811
|
|
|
564,451
|
|
|
3,193,395
|
|
|
|
|
|
|
3,193,395
|
|
|||||||||
Total
|
$
|
4,530,681
|
|
|
$
|
67,811
|
|
|
$
|
621,726
|
|
|
$
|
3,976,766
|
|
|
|
|
|
|
$
|
3,927,687
|
|
|
December 31, 2012
|
||||||||||||||||||||||||||
|
|
|
Recognized in OCI
|
|
|
|
Not recognized in OCI
|
|
|
||||||||||||||||||
(In thousands)
|
Amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Carrying
value
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
$
|
524,738
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
524,738
|
|
|
$
|
12,837
|
|
|
$
|
709
|
|
|
$
|
536,866
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
255,647
|
|
|
—
|
|
|
42,964
|
|
|
212,683
|
|
|
114
|
|
|
86,596
|
|
|
126,201
|
|
|||||||
Other
|
21,858
|
|
|
—
|
|
|
2,470
|
|
|
19,388
|
|
|
709
|
|
|
8,523
|
|
|
11,574
|
|
|||||||
Other debt securities
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
|
802,343
|
|
|
—
|
|
|
45,434
|
|
|
756,909
|
|
|
13,660
|
|
|
95,828
|
|
|
674,741
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
104,313
|
|
|
211
|
|
|
—
|
|
|
104,524
|
|
|
|
|
|
|
104,524
|
|
|||||||||
U.S. Government agencies and
corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agency securities
|
108,814
|
|
|
3,959
|
|
|
116
|
|
|
112,657
|
|
|
|
|
|
|
112,657
|
|
|||||||||
Agency guaranteed mortgage-backed securities
|
406,928
|
|
|
18,598
|
|
|
16
|
|
|
425,510
|
|
|
|
|
|
|
425,510
|
|
|||||||||
Small Business Administration loan-backed securities
|
1,124,322
|
|
|
29,245
|
|
|
639
|
|
|
1,152,928
|
|
|
|
|
|
|
1,152,928
|
|
|||||||||
Municipal securities
|
75,344
|
|
|
2,622
|
|
|
1,970
|
|
|
75,996
|
|
|
|
|
|
|
75,996
|
|
|||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
1,596,156
|
|
|
16,687
|
|
|
663,451
|
|
|
949,392
|
|
|
|
|
|
|
949,392
|
|
|||||||||
Trust preferred securities – real estate investment trusts
|
40,485
|
|
|
—
|
|
|
24,082
|
|
|
16,403
|
|
|
|
|
|
|
16,403
|
|
|||||||||
Auction rate securities
|
6,504
|
|
|
79
|
|
|
68
|
|
|
6,515
|
|
|
|
|
|
|
6,515
|
|
|||||||||
Other
|
25,614
|
|
|
701
|
|
|
6,941
|
|
|
19,374
|
|
|
|
|
|
|
19,374
|
|
|||||||||
|
3,488,480
|
|
|
72,102
|
|
|
697,283
|
|
|
2,863,299
|
|
|
|
|
|
|
2,863,299
|
|
|||||||||
Mutual funds and other
|
228,469
|
|
|
194
|
|
|
652
|
|
|
228,011
|
|
|
|
|
|
|
228,011
|
|
|||||||||
|
3,716,949
|
|
|
72,296
|
|
|
697,935
|
|
|
3,091,310
|
|
|
|
|
|
|
3,091,310
|
|
|||||||||
Total
|
$
|
4,519,292
|
|
|
$
|
72,296
|
|
|
$
|
743,369
|
|
|
$
|
3,848,219
|
|
|
|
|
|
|
$
|
3,766,051
|
|
|
Held-to-maturity
|
|
Available-for-sale
|
||||||||||||
(In thousands)
|
Amortized
cost
|
|
Estimated
fair
value
|
|
Amortized
cost
|
|
Estimated
fair
value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
63,400
|
|
|
$
|
63,302
|
|
|
$
|
436,513
|
|
|
$
|
415,076
|
|
Due after one year through five years
|
192,533
|
|
|
187,481
|
|
|
1,032,220
|
|
|
972,291
|
|
||||
Due after five years through ten years
|
216,669
|
|
|
188,033
|
|
|
615,276
|
|
|
564,084
|
|
||||
Due after ten years
|
368,044
|
|
|
295,476
|
|
|
1,329,643
|
|
|
973,375
|
|
||||
|
$
|
840,646
|
|
|
$
|
734,292
|
|
|
$
|
3,413,652
|
|
|
$
|
2,924,826
|
|
The following is a summary of the amount of gross unrealized losses for investment securities and the estimated fair value by length of time the securities have been in an unrealized loss position:
|
|||||||||||||||||||||||
|
June 30, 2013
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(In thousands)
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
$
|
4,622
|
|
|
$
|
102,723
|
|
|
$
|
32
|
|
|
$
|
3,262
|
|
|
$
|
4,654
|
|
|
$
|
105,985
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trust preferred securities – banks and insurance
|
83
|
|
|
76
|
|
|
111,100
|
|
|
151,156
|
|
|
111,183
|
|
|
151,232
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
10,239
|
|
|
11,356
|
|
|
10,239
|
|
|
11,356
|
|
||||||
|
4,705
|
|
|
102,799
|
|
|
121,371
|
|
|
165,774
|
|
|
126,076
|
|
|
268,573
|
|
||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
235
|
|
|
18,904
|
|
|
71
|
|
|
6,814
|
|
|
306
|
|
|
25,718
|
|
||||||
Agency guaranteed mortgage-backed securities
|
534
|
|
|
36,119
|
|
|
2
|
|
|
426
|
|
|
536
|
|
|
36,545
|
|
||||||
Small Business Administration loan-backed securities
|
36
|
|
|
4,949
|
|
|
467
|
|
|
41,684
|
|
|
503
|
|
|
46,633
|
|
||||||
Municipal securities
|
26
|
|
|
2,502
|
|
|
1,064
|
|
|
10,391
|
|
|
1,090
|
|
|
12,893
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Trust preferred securities – banks and insurance
|
—
|
|
|
—
|
|
|
529,836
|
|
|
868,996
|
|
|
529,836
|
|
|
868,996
|
|
||||||
Trust preferred securities – real estate investment trusts
|
—
|
|
|
—
|
|
|
21,942
|
|
|
18,499
|
|
|
21,942
|
|
|
18,499
|
|
||||||
Auction rate securities
|
—
|
|
|
—
|
|
|
44
|
|
|
2,483
|
|
|
44
|
|
|
2,483
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
2,311
|
|
|
17,287
|
|
|
2,311
|
|
|
17,287
|
|
||||||
|
831
|
|
|
62,474
|
|
|
555,737
|
|
|
966,580
|
|
|
556,568
|
|
|
1,029,054
|
|
||||||
Mutual funds and other
|
7,883
|
|
|
122,209
|
|
|
—
|
|
|
—
|
|
|
7,883
|
|
|
122,209
|
|
||||||
|
8,714
|
|
|
184,683
|
|
|
555,737
|
|
|
966,580
|
|
|
564,451
|
|
|
1,151,263
|
|
||||||
Total
|
$
|
13,419
|
|
|
$
|
287,482
|
|
|
$
|
677,108
|
|
|
$
|
1,132,354
|
|
|
$
|
690,527
|
|
|
$
|
1,419,836
|
|
|
December 31, 2012
|
|||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||
(In thousands)
|
Gross unrealized losses
|
|
Estimated fair value
|
|
Gross unrealized losses
|
|
Estimated fair value
|
|
Gross unrealized losses
|
|
Estimated fair value
|
|||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Municipal securities
|
$
|
630
|
|
|
$
|
42,613
|
|
|
$
|
79
|
|
|
$
|
5,910
|
|
|
$
|
709
|
|
|
$
|
48,523
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
—
|
|
|
—
|
|
|
129,560
|
|
|
126,019
|
|
|
129,560
|
|
|
126,019
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
10,993
|
|
|
10,904
|
|
|
10,993
|
|
|
10,904
|
|
|||||||
|
630
|
|
|
42,613
|
|
|
140,632
|
|
|
142,833
|
|
|
141,262
|
|
|
185,446
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Agency securities
|
35
|
|
|
18,633
|
|
|
81
|
|
|
6,916
|
|
|
116
|
|
|
25,549
|
|
|||||||
Agency guaranteed mortgage-backed securities
|
10
|
|
|
6,032
|
|
|
6
|
|
|
629
|
|
|
16
|
|
|
6,661
|
|
|||||||
Small Business Administration loan-backed securities
|
91
|
|
|
15,199
|
|
|
548
|
|
|
69,011
|
|
|
639
|
|
|
84,210
|
|
|||||||
Municipal securities
|
61
|
|
|
4,898
|
|
|
1,909
|
|
|
11,768
|
|
|
1,970
|
|
|
16,666
|
|
|||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
—
|
|
|
—
|
|
|
663,451
|
|
|
765,421
|
|
|
663,451
|
|
|
765,421
|
|
|||||||
Trust preferred securities – real estate investment trusts
|
—
|
|
|
—
|
|
|
24,082
|
|
|
16,403
|
|
|
24,082
|
|
|
16,403
|
|
|||||||
Auction rate securities
|
—
|
|
|
—
|
|
|
68
|
|
|
2,459
|
|
|
68
|
|
|
2,459
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
6,941
|
|
|
15,234
|
|
|
6,941
|
|
|
15,234
|
|
|||||||
|
197
|
|
|
44,762
|
|
|
697,086
|
|
|
887,841
|
|
|
697,283
|
|
|
932,603
|
|
|||||||
Mutual funds and other
|
652
|
|
|
112,324
|
|
|
—
|
|
|
—
|
|
|
652
|
|
|
112,324
|
|
|||||||
|
849
|
|
|
157,086
|
|
|
697,086
|
|
|
887,841
|
|
|
697,935
|
|
|
1,044,927
|
|
|||||||
Total
|
$
|
1,479
|
|
|
$
|
199,699
|
|
|
$
|
837,718
|
|
|
$
|
1,030,674
|
|
|
$
|
839,197
|
|
|
$
|
1,230,373
|
|
1)
|
Market yield requirements for bank CDO securities remain high. The financial crisis and economic downturn resulted in significant utilization of both the unique five-year deferral option, which each collateral issuer maintains during the life of the CDO, and the payment in kind feature described subsequently. The resulting increase in the rate of return demanded by the market for trust preferred CDOs remains dramatically higher than the contractual interest rates. Virtually all structured asset-backed security (“ABS”) fair values, including bank CDOs, deteriorated significantly during the recent financial crisis, generally reaching a low in mid-2009. Prices for some structured products have since rebounded as the crucial unknowns related to value became resolved and as trading increased in these securities. Unlike these other structured products, CDO tranches backed by bank trust preferred securities continue to be characterized by considerable uncertainty surrounding collateral behavior, specifically including, but not limited to, prepayments; the future number, size and timing of bank failures; holding company bankruptcies; and allowed deferrals and subsequent resumption of payment or default due to nonpayment of contractual interest.
|
2)
|
Structural features of the collateral make these CDO tranches difficult to model. The first feature unique to bank CDOs is the interest deferral feature previously noted. Throughout the financial crisis starting in 2008, certain banks within our CDO pools have exercised this prerogative. The extent to which these deferrals are likely to either transition to default or, alternatively, come current prior to the five-year deadline is extremely difficult for market participants to assess. Our CDO pools include a bank that first exercised this deferral option as early as the second quarter of 2008. At
June 30, 2013
,
92
banks underlying our CDO tranches had come current after a period of deferral, while
173
were deferring, but remained within the allowed deferral period.
|
3)
|
Ratings are generally below investment grade for even some of the most senior tranches. Ratings on a number of CDO tranches vary significantly among rating agencies. The presence of a below-investment-grade rating by even a single rating agency will severely limit the pool of buyers, which causes greater
|
4)
|
There is a lack of consistent disclosure by each CDO’s trustee of the identity of collateral issuers; in addition, complex structures make projecting tranche return profiles difficult for nonspecialists in the product.
|
5)
|
At purchase, the expectation of cash flow variability was limited. As a result of the crisis, we have seen extreme variability of collateral performance both compared to expectations and between different pools.
|
(In thousands)
|
Three Months Ended
June 30, 2013 |
|
Six Months Ended
June 30, 2013 |
||||||||||||||||||||
HTM
|
|
AFS
|
|
Total
|
|
HTM
|
|
AFS
|
|
Total
|
|||||||||||||
Balance of credit-related OTTI at beginning
of period
|
$
|
(13,952
|
)
|
|
$
|
(404,208
|
)
|
|
$
|
(418,160
|
)
|
|
$
|
(13,549
|
)
|
|
$
|
(394,494
|
)
|
|
$
|
(408,043
|
)
|
Additions recognized in earnings during the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit-related OTTI on securities not previously impaired
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
|
—
|
|
|
(403
|
)
|
||||||
Additional credit-related OTTI on securities previously impaired
|
—
|
|
|
(4,217
|
)
|
|
(4,217
|
)
|
|
—
|
|
|
(13,931
|
)
|
|
(13,931
|
)
|
||||||
Subtotal of amounts recognized in earnings
|
—
|
|
|
(4,217
|
)
|
|
(4,217
|
)
|
|
(403
|
)
|
|
(13,931
|
)
|
|
(14,334
|
)
|
||||||
Reductions for securities sold or paid off during the period
|
—
|
|
|
1,848
|
|
|
1,848
|
|
|
—
|
|
|
1,848
|
|
|
1,848
|
|
||||||
Balance of credit-related OTTI at end of period
|
$
|
(13,952
|
)
|
|
$
|
(406,577
|
)
|
|
$
|
(420,529
|
)
|
|
$
|
(13,952
|
)
|
|
$
|
(406,577
|
)
|
|
$
|
(420,529
|
)
|
(In thousands)
|
Three Months Ended
June 30, 2012 |
|
Six Months Ended
June 30, 2012 |
||||||||||||||||||||
HTM
|
|
AFS
|
|
Total
|
|
HTM
|
|
AFS
|
|
Total
|
|||||||||||||
Balance of credit-related OTTI at beginning
of period
|
$
|
(6,126
|
)
|
|
$
|
(308,216
|
)
|
|
$
|
(314,342
|
)
|
|
$
|
(6,126
|
)
|
|
$
|
(314,860
|
)
|
|
$
|
(320,986
|
)
|
Additions recognized in earnings during the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit-related OTTI on securities not previously impaired
|
(341
|
)
|
|
—
|
|
|
(341
|
)
|
|
(341
|
)
|
|
—
|
|
|
(341
|
)
|
||||||
Additional credit-related OTTI on securities previously impaired
|
—
|
|
|
(6,967
|
)
|
|
(6,967
|
)
|
|
—
|
|
|
(17,176
|
)
|
|
(17,176
|
)
|
||||||
Subtotal of amounts recognized in earnings
|
(341
|
)
|
|
(6,967
|
)
|
|
(7,308
|
)
|
|
(341
|
)
|
|
(17,176
|
)
|
|
(17,517
|
)
|
||||||
Reductions for securities sold or paid off during the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,853
|
|
|
16,853
|
|
||||||
Balance of credit-related OTTI at end of period
|
$
|
(6,467
|
)
|
|
$
|
(315,183
|
)
|
|
$
|
(321,650
|
)
|
|
$
|
(6,467
|
)
|
|
$
|
(315,183
|
)
|
|
$
|
(321,650
|
)
|
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
HTM
|
$
|
—
|
|
|
$
|
16,718
|
|
|
$
|
16,114
|
|
|
$
|
16,718
|
|
AFS
|
693
|
|
|
—
|
|
|
5,955
|
|
|
8,064
|
|
||||
|
$
|
693
|
|
|
$
|
16,718
|
|
|
$
|
22,069
|
|
|
$
|
24,782
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||||||||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
|||||||||||||||||||||||||
(In thousands)
|
Gross gains
|
|
Gross losses
|
|
Gross gains
|
|
Gross losses
|
|
Gross gains
|
|
Gross losses
|
|
Gross gains
|
|
Gross losses
|
|||||||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Held-to-maturity
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
341
|
|
|
$
|
31
|
|
|
$
|
403
|
|
|
$
|
98
|
|
|
$
|
341
|
|
|
Available-for-sale
|
3,162
|
|
|
8,539
|
|
|
5,470
|
|
|
6,967
|
|
|
6,438
|
|
|
18,254
|
|
|
11,929
|
|
|
22,964
|
|
|||||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Nonmarketable equity securities
|
2,209
|
|
|
—
|
|
|
10,518
|
|
|
10,411
|
|
|
5,066
|
|
|
25
|
|
|
19,721
|
|
|
10,469
|
|
|||||||||
|
5,378
|
|
|
8,539
|
|
|
16,037
|
|
|
17,719
|
|
|
11,535
|
|
|
18,682
|
|
|
31,748
|
|
|
33,774
|
|
|||||||||
Net losses
|
|
|
$
|
(3,161
|
)
|
|
|
|
$
|
(1,682
|
)
|
|
|
|
$
|
(7,147
|
)
|
|
|
|
$
|
(2,026
|
)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Statement of income information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net impairment losses on investment securities
|
|
|
$
|
(4,217
|
)
|
|
|
|
$
|
(7,308
|
)
|
|
|
|
$
|
(14,334
|
)
|
|
|
|
$
|
(17,517
|
)
|
|||||||||
Equity securities gains, net
|
|
|
2,209
|
|
|
|
|
107
|
|
|
|
|
5,041
|
|
|
|
|
9,252
|
|
|||||||||||||
Fixed income securities gains (losses), net
|
|
|
(1,153
|
)
|
|
|
|
5,519
|
|
|
|
|
2,146
|
|
|
|
|
6,239
|
|
|||||||||||||
Net losses
|
|
|
$
|
(3,161
|
)
|
|
|
|
$
|
(1,682
|
)
|
|
|
|
$
|
(7,147
|
)
|
|
|
|
$
|
(2,026
|
)
|
5.
|
LOANS AND ALLOWANCE FOR CREDIT LOSSES
|
(In thousands)
|
June 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Loans held for sale
|
$
|
164,619
|
|
|
$
|
251,651
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
11,898,852
|
|
|
$
|
11,256,945
|
|
Leasing
|
388,044
|
|
|
422,513
|
|
||
Owner occupied
|
7,394,206
|
|
|
7,589,082
|
|
||
Municipal
|
453,710
|
|
|
494,183
|
|
||
Total commercial
|
20,134,812
|
|
|
19,762,723
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
2,191,274
|
|
|
1,939,413
|
|
||
Term
|
7,970,833
|
|
|
8,062,819
|
|
||
Total commercial real estate
|
10,162,107
|
|
|
10,002,232
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
2,123,913
|
|
|
2,177,680
|
|
||
1-4 family residential
|
4,485,804
|
|
|
4,350,329
|
|
||
Construction and other consumer real estate
|
321,839
|
|
|
321,235
|
|
||
Bankcard and other revolving plans
|
315,487
|
|
|
306,428
|
|
||
Other
|
212,048
|
|
|
216,379
|
|
||
Total consumer
|
7,459,091
|
|
|
7,372,051
|
|
||
FDIC-supported loans
|
431,935
|
|
|
528,241
|
|
||
Total loans
|
$
|
38,187,945
|
|
|
$
|
37,665,247
|
|
•
|
Asset quality trends
|
•
|
Risk management and loan administration practices
|
•
|
Risk identification practices
|
•
|
Effect of changes in the nature and volume of the portfolio
|
•
|
Existence and effect of any portfolio concentrations
|
•
|
National economic and business conditions
|
•
|
Regional and local economic and business conditions
|
•
|
Data availability and applicability
|
Changes in the allowance for credit losses are summarized as follows:
|
|||||||||||||||||||
|
Three Months Ended June 30, 2013
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
1
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
496,930
|
|
|
$
|
256,421
|
|
|
$
|
84,622
|
|
|
$
|
3,808
|
|
|
$
|
841,781
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
(5,182
|
)
|
|
(11,222
|
)
|
|
(8,274
|
)
|
|
2,688
|
|
|
(21,990
|
)
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(209
|
)
|
|
(209
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(18,508
|
)
|
|
(6,107
|
)
|
|
(9,102
|
)
|
|
(1,382
|
)
|
|
(35,099
|
)
|
|||||
Recoveries
|
13,113
|
|
|
12,186
|
|
|
3,120
|
|
|
1,010
|
|
|
29,429
|
|
|||||
Net loan and lease charge-offs
|
(5,395
|
)
|
|
6,079
|
|
|
(5,982
|
)
|
|
(372
|
)
|
|
(5,670
|
)
|
|||||
Balance at end of period
|
$
|
486,353
|
|
|
$
|
251,278
|
|
|
$
|
70,366
|
|
|
$
|
5,915
|
|
|
$
|
813,912
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
65,632
|
|
|
$
|
33,240
|
|
|
$
|
1,583
|
|
|
$
|
—
|
|
|
$
|
100,455
|
|
Provision charged (credited) to earnings
|
(2,360
|
)
|
|
6,214
|
|
|
(227
|
)
|
|
—
|
|
|
3,627
|
|
|||||
Balance at end of period
|
$
|
63,272
|
|
|
$
|
39,454
|
|
|
$
|
1,356
|
|
|
$
|
—
|
|
|
$
|
104,082
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
486,353
|
|
|
$
|
251,278
|
|
|
$
|
70,366
|
|
|
$
|
5,915
|
|
|
$
|
813,912
|
|
Reserve for unfunded lending commitments
|
63,272
|
|
|
39,454
|
|
|
1,356
|
|
|
—
|
|
|
104,082
|
|
|||||
Total allowance for credit losses
|
$
|
549,625
|
|
|
$
|
290,732
|
|
|
$
|
71,722
|
|
|
$
|
5,915
|
|
|
$
|
917,994
|
|
|
Six Months Ended June 30, 2013
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
1
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
510,908
|
|
|
$
|
276,976
|
|
|
$
|
95,656
|
|
|
$
|
12,547
|
|
|
$
|
896,087
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
(8,411
|
)
|
|
(29,850
|
)
|
|
(13,294
|
)
|
|
530
|
|
|
(51,025
|
)
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,638
|
)
|
|
(7,638
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(36,608
|
)
|
|
(13,331
|
)
|
|
(19,039
|
)
|
|
(1,588
|
)
|
|
(70,566
|
)
|
|||||
Recoveries
|
20,464
|
|
|
17,483
|
|
|
7,043
|
|
|
2,064
|
|
|
47,054
|
|
|||||
Net loan and lease charge-offs
|
(16,144
|
)
|
|
4,152
|
|
|
(11,996
|
)
|
|
476
|
|
|
(23,512
|
)
|
|||||
Balance at end of period
|
$
|
486,353
|
|
|
$
|
251,278
|
|
|
$
|
70,366
|
|
|
$
|
5,915
|
|
|
$
|
813,912
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
67,374
|
|
|
$
|
37,852
|
|
|
$
|
1,583
|
|
|
$
|
—
|
|
|
$
|
106,809
|
|
Provision charged (credited) to earnings
|
(4,102
|
)
|
|
1,602
|
|
|
(227
|
)
|
|
—
|
|
|
(2,727
|
)
|
|||||
Balance at end of period
|
$
|
63,272
|
|
|
$
|
39,454
|
|
|
$
|
1,356
|
|
|
$
|
—
|
|
|
$
|
104,082
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
486,353
|
|
|
$
|
251,278
|
|
|
$
|
70,366
|
|
|
$
|
5,915
|
|
|
$
|
813,912
|
|
Reserve for unfunded lending commitments
|
63,272
|
|
|
39,454
|
|
|
1,356
|
|
|
—
|
|
|
104,082
|
|
|||||
Total allowance for credit losses
|
$
|
549,625
|
|
|
$
|
290,732
|
|
|
$
|
71,722
|
|
|
$
|
5,915
|
|
|
$
|
917,994
|
|
|
Three Months Ended June 30, 2012
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
1
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
547,341
|
|
|
$
|
334,299
|
|
|
$
|
109,101
|
|
|
$
|
21,045
|
|
|
$
|
1,011,786
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
15,372
|
|
|
(10,141
|
)
|
|
6,686
|
|
|
(1,064
|
)
|
|
10,853
|
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,856
|
)
|
|
(5,856
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(31,576
|
)
|
|
(22,823
|
)
|
|
(17,322
|
)
|
|
(1,964
|
)
|
|
(73,685
|
)
|
|||||
Recoveries
|
11,033
|
|
|
6,630
|
|
|
3,926
|
|
|
8,756
|
|
|
30,345
|
|
|||||
Net loan and lease charge-offs
|
(20,543
|
)
|
|
(16,193
|
)
|
|
(13,396
|
)
|
|
6,792
|
|
|
(43,340
|
)
|
|||||
Balance at end of period
|
$
|
542,170
|
|
|
$
|
307,965
|
|
|
$
|
102,391
|
|
|
$
|
20,917
|
|
|
$
|
973,443
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
72,002
|
|
|
$
|
25,799
|
|
|
$
|
917
|
|
|
$
|
—
|
|
|
$
|
98,718
|
|
Provision charged (credited) to earnings
|
(1,449
|
)
|
|
5,864
|
|
|
453
|
|
|
—
|
|
|
4,868
|
|
|||||
Balance at end of period
|
$
|
70,553
|
|
|
$
|
31,663
|
|
|
$
|
1,370
|
|
|
$
|
—
|
|
|
$
|
103,586
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
542,170
|
|
|
$
|
307,965
|
|
|
$
|
102,391
|
|
|
$
|
20,917
|
|
|
$
|
973,443
|
|
Reserve for unfunded lending commitments
|
70,553
|
|
|
31,663
|
|
|
1,370
|
|
|
—
|
|
|
103,586
|
|
|||||
Total allowance for credit losses
|
$
|
612,723
|
|
|
$
|
339,628
|
|
|
$
|
103,761
|
|
|
$
|
20,917
|
|
|
$
|
1,077,029
|
|
|
Six Months Ended June 30, 2012
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
1
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
561,351
|
|
|
$
|
343,747
|
|
|
$
|
123,115
|
|
|
$
|
23,472
|
|
|
$
|
1,051,685
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
25,183
|
|
|
(4,926
|
)
|
|
6,638
|
|
|
(378
|
)
|
|
26,517
|
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,913
|
)
|
|
(6,913
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(65,053
|
)
|
|
(49,834
|
)
|
|
(34,331
|
)
|
|
(4,481
|
)
|
|
(153,699
|
)
|
|||||
Recoveries
|
20,689
|
|
|
18,978
|
|
|
6,969
|
|
|
9,217
|
|
|
55,853
|
|
|||||
Net loan and lease charge-offs
|
(44,364
|
)
|
|
(30,856
|
)
|
|
(27,362
|
)
|
|
4,736
|
|
|
(97,846
|
)
|
|||||
Balance at end of period
|
$
|
542,170
|
|
|
$
|
307,965
|
|
|
$
|
102,391
|
|
|
$
|
20,917
|
|
|
$
|
973,443
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
77,232
|
|
|
$
|
23,572
|
|
|
$
|
1,618
|
|
|
$
|
—
|
|
|
$
|
102,422
|
|
Provision charged (credited) to earnings
|
(6,679
|
)
|
|
8,091
|
|
|
(248
|
)
|
|
—
|
|
|
1,164
|
|
|||||
Balance at end of period
|
$
|
70,553
|
|
|
$
|
31,663
|
|
|
$
|
1,370
|
|
|
$
|
—
|
|
|
$
|
103,586
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
542,170
|
|
|
$
|
307,965
|
|
|
$
|
102,391
|
|
|
$
|
20,917
|
|
|
$
|
973,443
|
|
Reserve for unfunded lending commitments
|
70,553
|
|
|
31,663
|
|
|
1,370
|
|
|
—
|
|
|
103,586
|
|
|||||
Total allowance for credit losses
|
$
|
612,723
|
|
|
$
|
339,628
|
|
|
$
|
103,761
|
|
|
$
|
20,917
|
|
|
$
|
1,077,029
|
|
The ALLL and outstanding loan balances according to the Company’s impairment method are summarized as follows:
|
|||||||||||||||||||
|
June 30, 2013
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
36,104
|
|
|
$
|
16,186
|
|
|
$
|
11,817
|
|
|
$
|
—
|
|
|
$
|
64,107
|
|
Collectively evaluated for impairment
|
450,249
|
|
|
235,092
|
|
|
58,549
|
|
|
1,008
|
|
|
744,898
|
|
|||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
4,907
|
|
|
4,907
|
|
|||||
Total
|
$
|
486,353
|
|
|
$
|
251,278
|
|
|
$
|
70,366
|
|
|
$
|
5,915
|
|
|
$
|
813,912
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Outstanding loan balances:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
341,652
|
|
|
$
|
329,247
|
|
|
$
|
109,860
|
|
|
$
|
1,056
|
|
|
$
|
781,815
|
|
Collectively evaluated for impairment
|
19,793,160
|
|
|
9,832,860
|
|
|
7,349,231
|
|
|
45,373
|
|
|
37,020,624
|
|
|||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
385,506
|
|
|
385,506
|
|
|||||
Total
|
$
|
20,134,812
|
|
|
$
|
10,162,107
|
|
|
$
|
7,459,091
|
|
|
$
|
431,935
|
|
|
$
|
38,187,945
|
|
|
December 31, 2012
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
30,587
|
|
|
$
|
22,295
|
|
|
$
|
13,758
|
|
|
$
|
—
|
|
|
$
|
66,640
|
|
Collectively evaluated for impairment
|
480,321
|
|
|
254,681
|
|
|
81,898
|
|
|
422
|
|
|
817,322
|
|
|||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
12,125
|
|
|
12,125
|
|
|||||
Total
|
$
|
510,908
|
|
|
$
|
276,976
|
|
|
$
|
95,656
|
|
|
$
|
12,547
|
|
|
$
|
896,087
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Outstanding loan balances:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
353,380
|
|
|
$
|
437,647
|
|
|
$
|
112,320
|
|
|
$
|
1,149
|
|
|
$
|
904,496
|
|
Collectively evaluated for impairment
|
19,409,343
|
|
|
9,564,585
|
|
|
7,259,731
|
|
|
57,896
|
|
|
36,291,555
|
|
|||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
469,196
|
|
|
469,196
|
|
|||||
Total
|
$
|
19,762,723
|
|
|
$
|
10,002,232
|
|
|
$
|
7,372,051
|
|
|
$
|
528,241
|
|
|
$
|
37,665,247
|
|
Past due loans (accruing and nonaccruing) are summarized as follows:
|
|||||||||||||||||||||||||||
|
June 30, 2013
|
||||||||||||||||||||||||||
(In thousands)
|
Current
|
|
30-89 days
past due
|
|
90+ days
past due
|
|
Total
past due
|
|
Total
loans
|
|
Accruing
loans
90+ days
past due
|
|
Nonaccrual
loans
that are
current
1
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
11,793,816
|
|
|
$
|
60,244
|
|
|
$
|
44,792
|
|
|
$
|
105,036
|
|
|
$
|
11,898,852
|
|
|
$
|
3,247
|
|
|
$
|
35,437
|
|
Leasing
|
386,464
|
|
|
635
|
|
|
945
|
|
|
1,580
|
|
|
388,044
|
|
|
—
|
|
|
—
|
|
|||||||
Owner occupied
|
7,283,000
|
|
|
47,716
|
|
|
63,490
|
|
|
111,206
|
|
|
7,394,206
|
|
|
1,734
|
|
|
100,732
|
|
|||||||
Municipal
|
453,710
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
453,710
|
|
|
—
|
|
|
8,962
|
|
|||||||
Total commercial
|
19,916,990
|
|
|
108,595
|
|
|
109,227
|
|
|
217,822
|
|
|
20,134,812
|
|
|
4,981
|
|
|
145,131
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,164,615
|
|
|
5,701
|
|
|
20,958
|
|
|
26,659
|
|
|
2,191,274
|
|
|
—
|
|
|
48,735
|
|
|||||||
Term
|
7,919,531
|
|
|
18,817
|
|
|
32,485
|
|
|
51,302
|
|
|
7,970,833
|
|
|
2,565
|
|
|
36,207
|
|
|||||||
Total commercial real estate
|
10,084,146
|
|
|
24,518
|
|
|
53,443
|
|
|
77,961
|
|
|
10,162,107
|
|
|
2,565
|
|
|
84,942
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
2,113,205
|
|
|
6,906
|
|
|
3,802
|
|
|
10,708
|
|
|
2,123,913
|
|
|
—
|
|
|
4,446
|
|
|||||||
1-4 family residential
|
4,441,875
|
|
|
13,548
|
|
|
30,381
|
|
|
43,929
|
|
|
4,485,804
|
|
|
2,065
|
|
|
32,601
|
|
|||||||
Construction and other consumer real estate
|
317,932
|
|
|
1,655
|
|
|
2,252
|
|
|
3,907
|
|
|
321,839
|
|
|
275
|
|
|
1,945
|
|
|||||||
Bankcard and other revolving plans
|
312,160
|
|
|
1,637
|
|
|
1,690
|
|
|
3,327
|
|
|
315,487
|
|
|
799
|
|
|
578
|
|
|||||||
Other
|
210,088
|
|
|
1,902
|
|
|
58
|
|
|
1,960
|
|
|
212,048
|
|
|
—
|
|
|
211
|
|
|||||||
Total consumer loans
|
7,395,260
|
|
|
25,648
|
|
|
38,183
|
|
|
63,831
|
|
|
7,459,091
|
|
|
3,139
|
|
|
39,781
|
|
|||||||
FDIC-supported loans
|
389,718
|
|
|
8,103
|
|
|
34,114
|
|
|
42,217
|
|
|
431,935
|
|
|
33,410
|
|
|
2,971
|
|
|||||||
Total
|
$
|
37,786,114
|
|
|
$
|
166,864
|
|
|
$
|
234,967
|
|
|
$
|
401,831
|
|
|
$
|
38,187,945
|
|
|
$
|
44,095
|
|
|
$
|
272,825
|
|
|
December 31, 2012
|
||||||||||||||||||||||||||
(In thousands)
|
Current
|
|
30-89 days
past due
|
|
90+ days
past due
|
|
Total
past due
|
|
Total
loans
|
|
Accruing
loans
90+ days
past due
|
|
Nonaccrual
loans
that are
current
1
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
11,124,639
|
|
|
$
|
73,555
|
|
|
$
|
58,751
|
|
|
$
|
132,306
|
|
|
$
|
11,256,945
|
|
|
$
|
4,013
|
|
|
$
|
32,389
|
|
Leasing
|
421,590
|
|
|
115
|
|
|
808
|
|
|
923
|
|
|
422,513
|
|
|
—
|
|
|
—
|
|
|||||||
Owner occupied
|
7,447,083
|
|
|
56,504
|
|
|
85,495
|
|
|
141,999
|
|
|
7,589,082
|
|
|
1,822
|
|
|
100,835
|
|
|||||||
Municipal
|
494,183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
494,183
|
|
|
—
|
|
|
9,234
|
|
|||||||
Total commercial
|
19,487,495
|
|
|
130,174
|
|
|
145,054
|
|
|
275,228
|
|
|
19,762,723
|
|
|
5,835
|
|
|
142,458
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
1,836,284
|
|
|
66,139
|
|
|
36,990
|
|
|
103,129
|
|
|
1,939,413
|
|
|
853
|
|
|
50,044
|
|
|||||||
Term
|
7,984,819
|
|
|
24,730
|
|
|
53,270
|
|
|
78,000
|
|
|
8,062,819
|
|
|
107
|
|
|
54,546
|
|
|||||||
Total commercial real estate
|
9,821,103
|
|
|
90,869
|
|
|
90,260
|
|
|
181,129
|
|
|
10,002,232
|
|
|
960
|
|
|
104,590
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
2,169,722
|
|
|
4,036
|
|
|
3,922
|
|
|
7,958
|
|
|
2,177,680
|
|
|
—
|
|
|
8,846
|
|
|||||||
1-4 family residential
|
4,282,611
|
|
|
24,060
|
|
|
43,658
|
|
|
67,718
|
|
|
4,350,329
|
|
|
1,423
|
|
|
21,945
|
|
|||||||
Construction and other consumer real estate
|
314,931
|
|
|
4,344
|
|
|
1,960
|
|
|
6,304
|
|
|
321,235
|
|
|
395
|
|
|
2,500
|
|
|||||||
Bankcard and other revolving plans
|
302,587
|
|
|
2,439
|
|
|
1,402
|
|
|
3,841
|
|
|
306,428
|
|
|
1,010
|
|
|
721
|
|
|||||||
Other
|
213,930
|
|
|
1,411
|
|
|
1,038
|
|
|
2,449
|
|
|
216,379
|
|
|
107
|
|
|
275
|
|
|||||||
Total consumer loans
|
7,283,781
|
|
|
36,290
|
|
|
51,980
|
|
|
88,270
|
|
|
7,372,051
|
|
|
2,935
|
|
|
34,287
|
|
|||||||
FDIC-supported loans
|
454,333
|
|
|
12,407
|
|
|
61,501
|
|
|
73,908
|
|
|
528,241
|
|
|
52,033
|
|
|
7,393
|
|
|||||||
Total
|
$
|
37,046,712
|
|
|
$
|
269,740
|
|
|
$
|
348,795
|
|
|
$
|
618,535
|
|
|
$
|
37,665,247
|
|
|
$
|
61,763
|
|
|
$
|
288,728
|
|
|
June 30, 2013
|
||||||||||||||||||||||
(In thousands)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
11,218,159
|
|
|
$
|
295,542
|
|
|
$
|
374,377
|
|
|
$
|
10,774
|
|
|
$
|
11,898,852
|
|
|
|
||
Leasing
|
383,901
|
|
|
1,498
|
|
|
2,645
|
|
|
—
|
|
|
388,044
|
|
|
|
|||||||
Owner occupied
|
6,688,110
|
|
|
108,812
|
|
|
594,271
|
|
|
3,013
|
|
|
7,394,206
|
|
|
|
|||||||
Municipal
|
439,344
|
|
|
5,404
|
|
|
8,962
|
|
|
—
|
|
|
453,710
|
|
|
|
|||||||
Total commercial
|
18,729,514
|
|
|
411,256
|
|
|
980,255
|
|
|
13,787
|
|
|
20,134,812
|
|
|
$
|
486,353
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
2,035,512
|
|
|
15,805
|
|
|
137,469
|
|
|
2,488
|
|
|
2,191,274
|
|
|
|
|||||||
Term
|
7,378,519
|
|
|
255,789
|
|
|
333,978
|
|
|
2,547
|
|
|
7,970,833
|
|
|
|
|||||||
Total commercial real estate
|
9,414,031
|
|
|
271,594
|
|
|
471,447
|
|
|
5,035
|
|
|
10,162,107
|
|
|
251,278
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,083,154
|
|
|
15
|
|
|
40,744
|
|
|
—
|
|
|
2,123,913
|
|
|
|
|||||||
1-4 family residential
|
4,375,794
|
|
|
3,456
|
|
|
106,554
|
|
|
—
|
|
|
4,485,804
|
|
|
|
|||||||
Construction and other consumer real estate
|
313,637
|
|
|
—
|
|
|
8,202
|
|
|
—
|
|
|
321,839
|
|
|
|
|||||||
Bankcard and other revolving plans
|
308,014
|
|
|
17
|
|
|
7,456
|
|
|
—
|
|
|
315,487
|
|
|
|
|||||||
Other
|
205,967
|
|
|
2,498
|
|
|
3,583
|
|
|
—
|
|
|
212,048
|
|
|
|
|||||||
Total consumer loans
|
7,286,566
|
|
|
5,986
|
|
|
166,539
|
|
|
—
|
|
|
7,459,091
|
|
|
70,366
|
|
||||||
FDIC-supported loans
|
274,616
|
|
|
25,529
|
|
|
131,790
|
|
|
—
|
|
|
431,935
|
|
|
5,915
|
|
||||||
Total
|
$
|
35,704,727
|
|
|
$
|
714,365
|
|
|
$
|
1,750,031
|
|
|
$
|
18,822
|
|
|
$
|
38,187,945
|
|
|
$
|
813,912
|
|
|
December 31, 2012
|
||||||||||||||||||||||
(In thousands)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
10,717,594
|
|
|
$
|
198,645
|
|
|
$
|
336,230
|
|
|
$
|
4,476
|
|
|
$
|
11,256,945
|
|
|
|
||
Leasing
|
419,482
|
|
|
226
|
|
|
2,805
|
|
|
—
|
|
|
422,513
|
|
|
|
|||||||
Owner occupied
|
6,833,923
|
|
|
138,539
|
|
|
612,011
|
|
|
4,609
|
|
|
7,589,082
|
|
|
|
|||||||
Municipal
|
453,193
|
|
|
31,756
|
|
|
9,234
|
|
|
—
|
|
|
494,183
|
|
|
|
|||||||
Total commercial
|
18,424,192
|
|
|
369,166
|
|
|
960,280
|
|
|
9,085
|
|
|
19,762,723
|
|
|
$
|
510,908
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
1,648,215
|
|
|
57,348
|
|
|
233,374
|
|
|
476
|
|
|
1,939,413
|
|
|
|
|||||||
Term
|
7,433,789
|
|
|
237,201
|
|
|
388,914
|
|
|
2,915
|
|
|
8,062,819
|
|
|
|
|||||||
Total commercial real estate
|
9,082,004
|
|
|
294,549
|
|
|
622,288
|
|
|
3,391
|
|
|
10,002,232
|
|
|
276,976
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,138,693
|
|
|
85
|
|
|
38,897
|
|
|
5
|
|
|
2,177,680
|
|
|
|
|||||||
1-4 family residential
|
4,234,426
|
|
|
4,316
|
|
|
111,063
|
|
|
524
|
|
|
4,350,329
|
|
|
|
|||||||
Construction and other consumer real estate
|
313,499
|
|
|
218
|
|
|
7,518
|
|
|
—
|
|
|
321,235
|
|
|
|
|||||||
Bankcard and other revolving plans
|
298,665
|
|
|
23
|
|
|
7,740
|
|
|
—
|
|
|
306,428
|
|
|
|
|||||||
Other
|
209,293
|
|
|
3,211
|
|
|
3,875
|
|
|
—
|
|
|
216,379
|
|
|
|
|||||||
Total consumer loans
|
7,194,576
|
|
|
7,853
|
|
|
169,093
|
|
|
529
|
|
|
7,372,051
|
|
|
95,656
|
|
||||||
FDIC-supported loans
|
327,609
|
|
|
24,980
|
|
|
175,652
|
|
|
—
|
|
|
528,241
|
|
|
12,547
|
|
||||||
Total
|
$
|
35,028,381
|
|
|
$
|
696,548
|
|
|
$
|
1,927,313
|
|
|
$
|
13,005
|
|
|
$
|
37,665,247
|
|
|
$
|
896,087
|
|
|
June 30, 2013
|
||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
158,007
|
|
|
$
|
28,035
|
|
|
$
|
102,604
|
|
|
$
|
130,639
|
|
|
$
|
15,463
|
|
Owner occupied
|
205,569
|
|
|
56,636
|
|
|
132,111
|
|
|
188,747
|
|
|
19,697
|
|
|||||
Total commercial
|
363,576
|
|
|
84,671
|
|
|
234,715
|
|
|
319,386
|
|
|
35,160
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
139,255
|
|
|
52,209
|
|
|
66,717
|
|
|
118,926
|
|
|
4,277
|
|
|||||
Term
|
208,326
|
|
|
42,183
|
|
|
142,290
|
|
|
184,473
|
|
|
11,651
|
|
|||||
Total commercial real estate
|
347,581
|
|
|
94,392
|
|
|
209,007
|
|
|
303,399
|
|
|
15,928
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
16,308
|
|
|
10,981
|
|
|
2,538
|
|
|
13,519
|
|
|
206
|
|
|||||
1-4 family residential
|
106,014
|
|
|
44,228
|
|
|
45,926
|
|
|
90,154
|
|
|
11,358
|
|
|||||
Construction and other consumer real estate
|
6,865
|
|
|
3,405
|
|
|
1,599
|
|
|
5,004
|
|
|
252
|
|
|||||
Other
|
938
|
|
|
936
|
|
|
2
|
|
|
938
|
|
|
—
|
|
|||||
Total consumer loans
|
130,125
|
|
|
59,550
|
|
|
50,065
|
|
|
109,615
|
|
|
11,816
|
|
|||||
FDIC-supported loans
|
537,324
|
|
|
192,344
|
|
|
194,219
|
|
|
386,563
|
|
|
4,907
|
|
|||||
Total
|
$
|
1,378,606
|
|
|
$
|
430,957
|
|
|
$
|
688,006
|
|
|
$
|
1,118,963
|
|
|
$
|
67,811
|
|
|
December 31, 2012
|
||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
176,521
|
|
|
$
|
27,035
|
|
|
$
|
119,780
|
|
|
$
|
146,815
|
|
|
$
|
12,198
|
|
Owner occupied
|
210,319
|
|
|
79,413
|
|
|
106,282
|
|
|
185,695
|
|
|
17,105
|
|
|||||
Total commercial
|
386,840
|
|
|
106,448
|
|
|
226,062
|
|
|
332,510
|
|
|
29,303
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
182,385
|
|
|
67,241
|
|
|
85,855
|
|
|
153,096
|
|
|
5,178
|
|
|||||
Term
|
310,242
|
|
|
70,718
|
|
|
187,112
|
|
|
257,830
|
|
|
16,725
|
|
|||||
Total commercial real estate
|
492,627
|
|
|
137,959
|
|
|
272,967
|
|
|
410,926
|
|
|
21,903
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
14,339
|
|
|
8,055
|
|
|
3,444
|
|
|
11,499
|
|
|
297
|
|
|||||
1-4 family residential
|
108,934
|
|
|
42,602
|
|
|
49,867
|
|
|
92,469
|
|
|
12,921
|
|
|||||
Construction and other consumer real estate
|
7,054
|
|
|
2,710
|
|
|
3,085
|
|
|
5,795
|
|
|
517
|
|
|||||
Bankcard and other revolving plans
|
287
|
|
|
—
|
|
|
287
|
|
|
287
|
|
|
1
|
|
|||||
Other
|
2,454
|
|
|
1,832
|
|
|
175
|
|
|
2,007
|
|
|
22
|
|
|||||
Total consumer loans
|
133,068
|
|
|
55,199
|
|
|
56,858
|
|
|
112,057
|
|
|
13,758
|
|
|||||
FDIC-supported loans
|
895,804
|
|
|
275,187
|
|
|
195,158
|
|
|
470,345
|
|
|
12,125
|
|
|||||
Total
|
$
|
1,908,339
|
|
|
$
|
574,793
|
|
|
$
|
751,045
|
|
|
$
|
1,325,838
|
|
|
$
|
77,089
|
|
|
Three Months Ended
June 30, 2013 |
|
Six Months Ended
June 30, 2013 |
|
||||||||||||
(In thousands)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
170,959
|
|
|
$
|
861
|
|
|
$
|
162,330
|
|
|
$
|
1,519
|
|
|
Owner occupied
|
213,757
|
|
|
959
|
|
|
209,928
|
|
|
1,878
|
|
|
||||
Total commercial
|
384,716
|
|
|
1,820
|
|
|
372,258
|
|
|
3,397
|
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
142,428
|
|
|
1,558
|
|
|
145,234
|
|
|
2,215
|
|
|
||||
Term
|
284,518
|
|
|
1,984
|
|
|
287,464
|
|
|
3,824
|
|
|
||||
Total commercial real estate
|
426,946
|
|
|
3,542
|
|
|
432,698
|
|
|
6,039
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
13,462
|
|
|
85
|
|
|
12,459
|
|
|
143
|
|
|
||||
1-4 family residential
|
100,395
|
|
|
354
|
|
|
98,914
|
|
|
725
|
|
|
||||
Construction and other consumer real estate
|
5,626
|
|
|
47
|
|
|
5,874
|
|
|
93
|
|
|
||||
Other
|
1,782
|
|
|
—
|
|
|
1,799
|
|
|
—
|
|
|
||||
Total consumer loans
|
121,265
|
|
|
486
|
|
|
119,046
|
|
|
961
|
|
|
||||
FDIC-supported loans
|
404,652
|
|
|
33,996
|
|
1
|
425,972
|
|
|
59,149
|
|
1
|
||||
Total
|
$
|
1,337,579
|
|
|
$
|
39,844
|
|
|
$
|
1,349,974
|
|
|
$
|
69,546
|
|
|
|
Three Months Ended
June 30, 2012 |
|
Six Months Ended
June 30, 2012 |
|
||||||||||||
(In thousands)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
163,397
|
|
|
$
|
820
|
|
|
$
|
158,783
|
|
|
$
|
1,509
|
|
|
Owner occupied
|
196,213
|
|
|
644
|
|
|
179,503
|
|
|
1,176
|
|
|
||||
Total commercial
|
359,610
|
|
|
1,464
|
|
|
338,286
|
|
|
2,685
|
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
218,087
|
|
|
1,385
|
|
|
207,418
|
|
|
2,940
|
|
|
||||
Term
|
268,798
|
|
|
1,416
|
|
|
255,229
|
|
|
2,789
|
|
|
||||
Total commercial real estate
|
486,885
|
|
|
2,801
|
|
|
462,647
|
|
|
5,729
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
906
|
|
|
2
|
|
|
998
|
|
|
4
|
|
|
||||
1-4 family residential
|
93,188
|
|
|
437
|
|
|
86,799
|
|
|
758
|
|
|
||||
Construction and other consumer real estate
|
7,079
|
|
|
43
|
|
|
6,763
|
|
|
88
|
|
|
||||
Bankcard and other revolving plans
|
98
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
||||
Other
|
1,550
|
|
|
—
|
|
|
2,105
|
|
|
—
|
|
|
||||
Total consumer loans
|
102,821
|
|
|
482
|
|
|
96,714
|
|
|
850
|
|
|
||||
FDIC-supported loans
|
102,503
|
|
|
11,288
|
|
1
|
106,570
|
|
|
20,148
|
|
1
|
||||
Total
|
$
|
1,051,819
|
|
|
$
|
16,035
|
|
|
$
|
1,004,217
|
|
|
$
|
29,412
|
|
|
|
June 30, 2013
|
||||||||||||||||||||||||||
|
Recorded investment resulting from the following modification types:
|
|
|
||||||||||||||||||||||||
(In thousands)
|
Interest
rate below
market
|
|
Maturity
or term
extension
|
|
Principal
forgiveness
|
|
Payment
deferral
|
|
Other
1
|
|
Multiple
modification
types
2
|
|
Total
|
||||||||||||||
Accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
1,532
|
|
|
$
|
9,133
|
|
|
$
|
—
|
|
|
$
|
8,349
|
|
|
$
|
15,625
|
|
|
$
|
22,890
|
|
|
$
|
57,529
|
|
Owner occupied
|
24,476
|
|
|
3,536
|
|
|
999
|
|
|
2,981
|
|
|
9,901
|
|
|
34,930
|
|
|
76,823
|
|
|||||||
Total commercial
|
26,008
|
|
|
12,669
|
|
|
999
|
|
|
11,330
|
|
|
25,526
|
|
|
57,820
|
|
|
134,352
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,083
|
|
|
13,296
|
|
|
—
|
|
|
59
|
|
|
8,203
|
|
|
31,231
|
|
|
54,872
|
|
|||||||
Term
|
31,230
|
|
|
9,686
|
|
|
8,361
|
|
|
4,892
|
|
|
24,720
|
|
|
54,028
|
|
|
132,917
|
|
|||||||
Total commercial real estate
|
33,313
|
|
|
22,982
|
|
|
8,361
|
|
|
4,951
|
|
|
32,923
|
|
|
85,259
|
|
|
187,789
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
743
|
|
|
—
|
|
|
8,415
|
|
|
—
|
|
|
324
|
|
|
191
|
|
|
9,673
|
|
|||||||
1-4 family residential
|
3,021
|
|
|
1,304
|
|
|
8,135
|
|
|
651
|
|
|
3,964
|
|
|
33,751
|
|
|
50,826
|
|
|||||||
Construction and other consumer real estate
|
137
|
|
|
970
|
|
|
—
|
|
|
—
|
|
|
146
|
|
|
1,533
|
|
|
2,786
|
|
|||||||
Other
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Total consumer loans
|
3,901
|
|
|
2,276
|
|
|
16,550
|
|
|
651
|
|
|
4,434
|
|
|
35,475
|
|
|
63,287
|
|
|||||||
Total accruing
|
63,222
|
|
|
37,927
|
|
|
25,910
|
|
|
16,932
|
|
|
62,883
|
|
|
178,554
|
|
|
385,428
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
108
|
|
|
7,947
|
|
|
—
|
|
|
217
|
|
|
1,477
|
|
|
13,684
|
|
|
23,433
|
|
|||||||
Owner occupied
|
1,321
|
|
|
2,685
|
|
|
1,132
|
|
|
3,492
|
|
|
14,234
|
|
|
10,229
|
|
|
33,093
|
|
|||||||
Total commercial
|
1,429
|
|
|
10,632
|
|
|
1,132
|
|
|
3,709
|
|
|
15,711
|
|
|
23,913
|
|
|
56,526
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
12,213
|
|
|
2,790
|
|
|
—
|
|
|
—
|
|
|
5,620
|
|
|
39,631
|
|
|
60,254
|
|
|||||||
Term
|
312
|
|
|
460
|
|
|
—
|
|
|
3,057
|
|
|
1,525
|
|
|
6,825
|
|
|
12,179
|
|
|||||||
Total commercial real estate
|
12,525
|
|
|
3,250
|
|
|
—
|
|
|
3,057
|
|
|
7,145
|
|
|
46,456
|
|
|
72,433
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1,633
|
|
|
—
|
|
|
221
|
|
|
131
|
|
|
1,985
|
|
|||||||
1-4 family residential
|
4,617
|
|
|
1,942
|
|
|
2,191
|
|
|
—
|
|
|
4,589
|
|
|
15,849
|
|
|
29,188
|
|
|||||||
Construction and other consumer real estate
|
5
|
|
|
943
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|
992
|
|
|
2,095
|
|
|||||||
Bankcard and other revolving plans
|
—
|
|
|
269
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269
|
|
|||||||
Total consumer loans
|
4,622
|
|
|
3,154
|
|
|
3,824
|
|
|
—
|
|
|
4,965
|
|
|
16,972
|
|
|
33,537
|
|
|||||||
Total nonaccruing
|
18,576
|
|
|
17,036
|
|
|
4,956
|
|
|
6,766
|
|
|
27,821
|
|
|
87,341
|
|
|
162,496
|
|
|||||||
Total
|
$
|
81,798
|
|
|
$
|
54,963
|
|
|
$
|
30,866
|
|
|
$
|
23,698
|
|
|
$
|
90,704
|
|
|
$
|
265,895
|
|
|
$
|
547,924
|
|
|
December 31, 2012
|
||||||||||||||||||||||||||
|
Recorded investment resulting from the following modification types:
|
|
|
||||||||||||||||||||||||
(In thousands)
|
Interest
rate below
market
|
|
Maturity
or term
extension
|
|
Principal
forgiveness
|
|
Payment
deferral
|
|
Other
1
|
|
Multiple
modification
types
2
|
|
Total
|
||||||||||||||
Accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
5,388
|
|
|
$
|
6,139
|
|
|
$
|
—
|
|
|
$
|
3,585
|
|
|
$
|
17,647
|
|
|
$
|
44,684
|
|
|
$
|
77,443
|
|
Owner occupied
|
20,963
|
|
|
12,104
|
|
|
—
|
|
|
4,013
|
|
|
9,305
|
|
|
13,598
|
|
|
59,983
|
|
|||||||
Total commercial
|
26,351
|
|
|
18,243
|
|
|
—
|
|
|
7,598
|
|
|
26,952
|
|
|
58,282
|
|
|
137,426
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
1,718
|
|
|
9,868
|
|
|
2
|
|
|
59
|
|
|
8,432
|
|
|
30,248
|
|
|
50,327
|
|
|||||||
Term
|
30,118
|
|
|
1,854
|
|
|
8,433
|
|
|
3,807
|
|
|
32,302
|
|
|
82,809
|
|
|
159,323
|
|
|||||||
Total commercial real estate
|
31,836
|
|
|
11,722
|
|
|
8,435
|
|
|
3,866
|
|
|
40,734
|
|
|
113,057
|
|
|
209,650
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
744
|
|
|
—
|
|
|
5,965
|
|
|
—
|
|
|
300
|
|
|
218
|
|
|
7,227
|
|
|||||||
1-4 family residential
|
2,665
|
|
|
1,324
|
|
|
5,923
|
|
|
147
|
|
|
3,319
|
|
|
36,199
|
|
|
49,577
|
|
|||||||
Construction and other consumer real estate
|
147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
641
|
|
|
2,354
|
|
|
3,142
|
|
|||||||
Other
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|||||||
Total consumer loans
|
3,556
|
|
|
1,327
|
|
|
11,888
|
|
|
147
|
|
|
4,261
|
|
|
38,771
|
|
|
59,950
|
|
|||||||
Total accruing
|
61,743
|
|
|
31,292
|
|
|
20,323
|
|
|
11,611
|
|
|
71,947
|
|
|
210,110
|
|
|
407,026
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
318
|
|
|
5,667
|
|
|
—
|
|
|
480
|
|
|
2,035
|
|
|
17,379
|
|
|
25,879
|
|
|||||||
Owner occupied
|
3,822
|
|
|
4,816
|
|
|
654
|
|
|
4,701
|
|
|
7,643
|
|
|
7,803
|
|
|
29,439
|
|
|||||||
Total commercial
|
4,140
|
|
|
10,483
|
|
|
654
|
|
|
5,181
|
|
|
9,678
|
|
|
25,182
|
|
|
55,318
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
18,255
|
|
|
1,308
|
|
|
—
|
|
|
—
|
|
|
1,807
|
|
|
68,481
|
|
|
89,851
|
|
|||||||
Term
|
3,042
|
|
|
536
|
|
|
—
|
|
|
2,645
|
|
|
9,389
|
|
|
17,718
|
|
|
33,330
|
|
|||||||
Total commercial real estate
|
21,297
|
|
|
1,844
|
|
|
—
|
|
|
2,645
|
|
|
11,196
|
|
|
86,199
|
|
|
123,181
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
4,008
|
|
|
—
|
|
|
131
|
|
|
143
|
|
|
4,282
|
|
|||||||
1-4 family residential
|
4,697
|
|
|
5,637
|
|
|
4,048
|
|
|
—
|
|
|
1,693
|
|
|
14,240
|
|
|
30,315
|
|
|||||||
Construction and other consumer real estate
|
7
|
|
|
1,671
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
243
|
|
|
1,921
|
|
|||||||
Bankcard and other revolving plans
|
—
|
|
|
287
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
287
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
172
|
|
|
—
|
|
|
—
|
|
|
172
|
|
|||||||
Total consumer loans
|
4,704
|
|
|
7,595
|
|
|
8,056
|
|
|
172
|
|
|
1,824
|
|
|
14,626
|
|
|
36,977
|
|
|||||||
Total nonaccruing
|
30,141
|
|
|
19,922
|
|
|
8,710
|
|
|
7,998
|
|
|
22,698
|
|
|
126,007
|
|
|
215,476
|
|
|||||||
Total
|
$
|
91,884
|
|
|
$
|
51,214
|
|
|
$
|
29,033
|
|
|
$
|
19,609
|
|
|
$
|
94,645
|
|
|
$
|
336,117
|
|
|
$
|
622,502
|
|
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
(17
|
)
|
|
$
|
(8
|
)
|
|
$
|
(201
|
)
|
|
$
|
(23
|
)
|
Owner occupied
|
(1,046
|
)
|
|
(329
|
)
|
|
(2,097
|
)
|
|
(705
|
)
|
||||
Total commercial
|
(1,063
|
)
|
|
(337
|
)
|
|
(2,298
|
)
|
|
(728
|
)
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
(111
|
)
|
|
(236
|
)
|
|
(519
|
)
|
|
(469
|
)
|
||||
Term
|
(2,585
|
)
|
|
(1,473
|
)
|
|
(5,150
|
)
|
|
(3,026
|
)
|
||||
Total commercial real estate
|
(2,696
|
)
|
|
(1,709
|
)
|
|
(5,669
|
)
|
|
(3,495
|
)
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
(34
|
)
|
|
(19
|
)
|
|
(73
|
)
|
|
(34
|
)
|
||||
1-4 family residential
|
(3,758
|
)
|
|
(3,992
|
)
|
|
(7,613
|
)
|
|
(7,841
|
)
|
||||
Construction and other consumer real estate
|
(108
|
)
|
|
(107
|
)
|
|
(217
|
)
|
|
(215
|
)
|
||||
Total consumer loans
|
(3,900
|
)
|
|
(4,118
|
)
|
|
(7,903
|
)
|
|
(8,090
|
)
|
||||
Total decrease to interest income
1
|
$
|
(7,659
|
)
|
|
$
|
(6,164
|
)
|
|
$
|
(15,870
|
)
|
|
$
|
(12,313
|
)
|
|
Three Months Ended
June 30, 2013 |
|
Six Months Ended
June 30, 2013 |
||||||||||||||||||||
(In thousands)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Owner occupied
|
—
|
|
|
3,153
|
|
|
3,153
|
|
|
—
|
|
|
3,153
|
|
|
3,153
|
|
||||||
Total commercial
|
—
|
|
|
3,153
|
|
|
3,153
|
|
|
—
|
|
|
3,156
|
|
|
3,156
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Term
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,019
|
|
|
1,019
|
|
||||||
Total commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,019
|
|
|
1,019
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
85
|
|
||||||
1-4 family residential
|
—
|
|
|
2,399
|
|
|
2,399
|
|
|
—
|
|
|
2,399
|
|
|
2,399
|
|
||||||
Total consumer loans
|
—
|
|
|
2,399
|
|
|
2,399
|
|
|
—
|
|
|
2,484
|
|
|
2,484
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
5,552
|
|
|
$
|
5,552
|
|
|
$
|
—
|
|
|
$
|
6,659
|
|
|
$
|
6,659
|
|
|
Three Months Ended
June 30, 2012 |
|
Six Months Ended
June 30, 2012 |
||||||||||||||||||||
(In thousands)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
1,291
|
|
|
$
|
1,291
|
|
Owner occupied
|
—
|
|
|
5,405
|
|
|
5,405
|
|
|
—
|
|
|
5,405
|
|
|
5,405
|
|
||||||
Total commercial
|
—
|
|
|
5,519
|
|
|
5,519
|
|
|
—
|
|
|
6,696
|
|
|
6,696
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
—
|
|
|
2,765
|
|
|
2,765
|
|
|
—
|
|
|
2,765
|
|
|
2,765
|
|
||||||
Term
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,466
|
|
|
1,466
|
|
||||||
Total commercial real estate
|
—
|
|
|
2,765
|
|
|
2,765
|
|
|
—
|
|
|
4,231
|
|
|
4,231
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
526
|
|
|
526
|
|
||||||
Total consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
526
|
|
|
526
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
8,284
|
|
|
$
|
8,284
|
|
|
$
|
—
|
|
|
$
|
11,453
|
|
|
$
|
11,453
|
|
(In thousands)
|
June 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Commercial
|
$
|
190,576
|
|
|
$
|
227,414
|
|
Commercial real estate
|
322,361
|
|
|
382,068
|
|
||
Consumer
|
35,295
|
|
|
41,398
|
|
||
Outstanding balance
|
$
|
548,232
|
|
|
$
|
650,880
|
|
|
|
|
|
||||
Carrying amount
|
$
|
386,918
|
|
|
$
|
472,040
|
|
ALLL
|
4,859
|
|
|
12,077
|
|
||
Carrying amount, net
|
$
|
382,059
|
|
|
$
|
459,963
|
|
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
126,359
|
|
|
$
|
174,004
|
|
|
$
|
134,461
|
|
|
$
|
184,679
|
|
Accretion
|
(33,787
|
)
|
|
(22,882
|
)
|
|
(59,053
|
)
|
|
(44,415
|
)
|
||||
Reclassification from nonaccretable difference
|
8,312
|
|
|
1,678
|
|
|
23,184
|
|
|
15,547
|
|
||||
Disposals and other
|
3,599
|
|
|
4,240
|
|
|
5,891
|
|
|
1,229
|
|
||||
Balance at end of period
|
$
|
104,483
|
|
|
$
|
157,040
|
|
|
$
|
104,483
|
|
|
$
|
157,040
|
|
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|||||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
71,100
|
|
|
$
|
121,332
|
|
|
$
|
90,929
|
|
|
$
|
133,810
|
|
Amounts filed with the FDIC and collected or in process
1
|
2,089
|
|
|
12,495
|
|
|
9,760
|
|
|
11,202
|
|
||||
Net change in asset balance due to reestimation of projected cash flows
2
|
(21,892
|
)
|
|
(16,660
|
)
|
|
(49,392
|
)
|
|
(27,845
|
)
|
||||
Balance at end of period
|
$
|
51,297
|
|
|
$
|
117,167
|
|
|
$
|
51,297
|
|
|
$
|
117,167
|
|
1
|
The FDIC’s reimbursement process requires that submitted expenses be paid, not just incurred, to qualify for reimbursement.
|
2
|
Negative amounts result from the accretion of loan balances based on increases in cash flow estimates and on prepayments.
|
6.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Notional
amount
|
|
Fair value
|
|
Notional
amount
|
|
Fair value
|
||||||||||||||||
(In thousands)
|
Other
assets
|
|
Other
liabilities
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
50,000
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
150,000
|
|
|
$
|
1,188
|
|
|
$
|
—
|
|
Total derivatives designated as hedging instruments
|
50,000
|
|
|
66
|
|
|
—
|
|
|
150,000
|
|
|
1,188
|
|
|
—
|
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
80,446
|
|
|
685
|
|
|
687
|
|
|
98,524
|
|
|
1,043
|
|
|
1,047
|
|
||||||
Interest rate swaps for customers
2
|
2,782,634
|
|
|
58,706
|
|
|
59,346
|
|
|
2,607,603
|
|
|
79,579
|
|
|
82,926
|
|
||||||
Total return swap
|
1,159,686
|
|
|
—
|
|
|
4,829
|
|
|
1,159,686
|
|
|
—
|
|
|
5,127
|
|
||||||
Total derivatives not designated as hedging instruments
|
4,022,766
|
|
|
59,391
|
|
|
64,862
|
|
|
3,865,813
|
|
|
80,622
|
|
|
89,100
|
|
||||||
Total derivatives
|
$
|
4,072,766
|
|
|
$
|
59,457
|
|
|
$
|
64,862
|
|
|
$
|
4,015,813
|
|
|
$
|
81,810
|
|
|
$
|
89,100
|
|
|
Three Months Ended June 30, 2013
|
|
Six Months Ended June 30, 2013
|
||||||||||||||||||||||||||||
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
(In thousands)
|
OCI
|
|
Reclassified
from AOCI
to interest
income
3
|
|
Noninterest
income
(expense)
|
|
Offset to
interest
expense
|
|
OCI
|
|
Reclassified
from AOCI
to interest
income
3
|
|
Noninterest
income
(expense)
|
|
Offset to
interest
expense
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
$
|
(2
|
)
|
|
$
|
777
|
|
|
$
|
—
|
|
|
|
|
$
|
(6
|
)
|
|
$
|
2,382
|
|
|
$
|
—
|
|
|
|
||||
|
(2
|
)
|
|
777
|
|
|
—
|
|
|
|
|
(6
|
)
|
|
2,382
|
|
|
—
|
|
|
|
||||||||||
Liability derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Terminated swaps on long-term debt
|
|
|
|
|
|
|
$
|
780
|
|
|
|
|
|
|
|
|
$
|
1,546
|
|
||||||||||||
Total derivatives designated as hedging instruments
|
(2
|
)
|
|
777
|
|
|
—
|
|
|
780
|
|
|
(6
|
)
|
|
2,382
|
|
|
—
|
|
|
1,546
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
|
|
|
|
(20
|
)
|
|
|
|
|
|
|
|
(87
|
)
|
|
|
||||||||||||||
Interest rate swaps for customers
2
|
|
|
|
|
4,290
|
|
|
|
|
|
|
|
|
5,748
|
|
|
|
||||||||||||||
Futures contracts
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
||||||||||||||
Total return swap
|
|
|
|
|
(5,450
|
)
|
|
|
|
|
|
|
|
(11,008
|
)
|
|
|
||||||||||||||
Total derivatives not designated as hedging instruments
|
|
|
|
|
(1,181
|
)
|
|
|
|
|
|
|
|
(5,347
|
)
|
|
|
||||||||||||||
Total derivatives
|
$
|
(2
|
)
|
|
$
|
777
|
|
|
$
|
(1,181
|
)
|
|
$
|
780
|
|
|
$
|
(6
|
)
|
|
$
|
2,382
|
|
|
$
|
(5,347
|
)
|
|
$
|
1,546
|
|
|
Three Months Ended June 30, 2012
|
|
Six Months Ended June 30, 2012
|
||||||||||||||||||||||||||||
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
(In thousands)
|
OCI
|
|
Reclassified
from AOCI
to interest
income
3
|
|
Noninterest
income
(expense)
|
|
Offset to
interest
expense
|
|
OCI
|
|
Reclassified
from AOCI
to interest
income
3
|
|
Noninterest
income
(expense)
|
|
Offset to
interest
expense
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
$
|
95
|
|
|
$
|
3,199
|
|
|
$
|
—
|
|
|
|
|
$
|
306
|
|
|
$
|
8,493
|
|
|
$
|
—
|
|
|
|
||||
|
95
|
|
|
3,199
|
|
|
—
|
|
|
|
|
306
|
|
|
8,493
|
|
|
—
|
|
|
|
||||||||||
Liability derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Terminated swaps on long-term debt
|
|
|
|
|
|
|
$
|
756
|
|
|
|
|
|
|
|
|
1,506
|
|
|||||||||||||
Total derivatives designated as hedging instruments
|
95
|
|
|
3,199
|
|
|
—
|
|
|
756
|
|
|
306
|
|
|
8,493
|
|
|
—
|
|
|
1,506
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
(128
|
)
|
|
|
||||||||||||||
Interest rate swaps for customers
2
|
|
|
|
|
(804
|
)
|
|
|
|
|
|
|
|
586
|
|
|
|
||||||||||||||
Basis swaps
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
18
|
|
|
|
||||||||||||||
Futures contracts
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
(10
|
)
|
|
|
||||||||||||||
Total return swap
|
|
|
|
|
(5,450
|
)
|
|
|
|
|
|
|
|
(10,900
|
)
|
|
|
||||||||||||||
Total derivatives not designated as hedging instruments
|
|
|
|
|
(6,236
|
)
|
|
|
|
|
|
|
|
(10,434
|
)
|
|
|
||||||||||||||
Total derivatives
|
$
|
95
|
|
|
$
|
3,199
|
|
|
$
|
(6,236
|
)
|
|
$
|
756
|
|
|
$
|
306
|
|
|
$
|
8,493
|
|
|
$
|
(10,434
|
)
|
|
$
|
1,506
|
|
2
|
Amounts include both the customer swaps and the offsetting derivative contracts.
|
1)
|
The Company built on its fair valuation process for the underlying CDO portfolio and utilized those same projected cash flows to quantify the extent and timing of payments to be received from the Trustee related to each CDO and in the aggregate. For valuation purposes, we assumed that a market participant would cancel the TRS at the first opportunity if the TRS did not have a positive value based on the best estimates of cash flows through maturity. Consequently, the fair value approximated the amount of required payments up to the earliest termination date.
|
2)
|
A valuation from a market participant in possession of all relevant terms and costs of the TRS structure.
|
7.
|
DEBT AND SHAREHOLDERS’ EQUITY
|
1.
|
Series I,
$300.9 million
, fixed/floating rate issued May 17, 2013; dividends payable semiannually at
5.80%
on the 15th day of June and December commencing December 15, 2013 to the earliest possible redemption date of June 15, 2023, interest rate then resets to an annual floating rate equal to three-month LIBOR plus
3.80%
and dividends become payable quarterly.
|
2.
|
Series H,
$126.2 million
, fixed rate issued May 3, 2013; dividends payable quarterly at
5.75%
on the 15th day of March, June, September, and December, commencing June 15, 2013; redeemable beginning June 15, 2019.
|
3.
|
Series G,
$171.8 million
, fixed/floating rate issued February 7, 2013; dividends payable quarterly at
6.30%
on the 15th day of March, June, September, and December commencing June 15, 2013 to the earliest possible redemption date of March 15, 2023, interest rate then resets to an annual floating rate equal to three-month LIBOR plus
4.24%
.
|
(In thousands)
|
|
Net unrealized gains (losses) on investment securities
|
|
Net unrealized gains (losses) on derivative instruments
|
|
Pension and post-retirement
|
|
Total
|
||||||||||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2012
|
|
|
$
|
(397,616
|
)
|
|
|
|
$
|
1,794
|
|
|
|
$
|
(50,335
|
)
|
|
$
|
(446,157
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
|
|
64,440
|
|
|
|
|
(3
|
)
|
|
|
—
|
|
|
64,437
|
|
||||
Amounts reclassified from AOCI, net of tax
|
|
|
8,590
|
|
|
|
|
(1,426
|
)
|
|
|
—
|
|
|
7,164
|
|
||||
Other comprehensive income (loss)
|
|
|
73,030
|
|
|
|
|
(1,429
|
)
|
|
|
—
|
|
|
71,601
|
|
||||
Balance at June 30, 2013
|
|
|
$
|
(324,586
|
)
|
|
|
|
$
|
365
|
|
|
|
$
|
(50,335
|
)
|
|
$
|
(374,556
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2011
|
|
|
$
|
(546,763
|
)
|
|
|
|
$
|
9,404
|
|
|
|
$
|
(54,725
|
)
|
|
$
|
(592,084
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications, net of tax
|
|
|
13,742
|
|
|
|
|
177
|
|
|
|
—
|
|
|
13,919
|
|
||||
Amounts reclassified from AOCI, net of tax
|
|
|
7,151
|
|
|
|
|
(5,133
|
)
|
|
|
—
|
|
|
2,018
|
|
||||
Other comprehensive income (loss)
|
|
|
20,893
|
|
|
|
|
(4,956
|
)
|
|
|
—
|
|
|
15,937
|
|
||||
Balance at June 30, 2012
|
|
|
$
|
(525,870
|
)
|
|
|
|
$
|
4,448
|
|
|
|
$
|
(54,725
|
)
|
|
$
|
(576,147
|
)
|
|
|
Amounts reclassified from AOCI
1
|
|
Statement of income (SI) Balance sheet
(BS)
|
|
|
||||||||||||||
(In thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|||||||||||||
Details about AOCI components
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
Affected line item
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on investment securities
|
|
$
|
(1,153
|
)
|
|
$
|
5,519
|
|
|
$
|
2,146
|
|
|
$
|
6,239
|
|
|
SI
|
|
Fixed income securities gains (losses), net
|
Income tax expense (benefit)
|
|
(441
|
)
|
|
2,038
|
|
|
821
|
|
|
2,252
|
|
|
|
|
|
||||
|
|
(712
|
)
|
|
3,481
|
|
|
1,325
|
|
|
3,987
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized losses on investment
securities
|
|
(4,217
|
)
|
|
(6,967
|
)
|
|
(13,932
|
)
|
|
(17,176
|
)
|
|
SI
|
|
Net impairment losses on investment securities
|
||||
Income tax benefit
|
|
(1,668
|
)
|
|
(2,665
|
)
|
|
(5,384
|
)
|
|
(6,570
|
)
|
|
|
|
|
||||
|
|
(2,549
|
)
|
|
(4,302
|
)
|
|
(8,548
|
)
|
|
(10,606
|
)
|
|
|
|
|
||||
Accretion of securities with noncredit-related impairment losses not expected to be sold
|
|
(637
|
)
|
|
(614
|
)
|
|
(981
|
)
|
|
(881
|
)
|
|
BS
|
|
Investment securities, held-to-maturity
|
||||
Deferred income taxes
|
|
(521
|
)
|
|
247
|
|
|
(386
|
)
|
|
349
|
|
|
BS
|
|
Other assets
|
||||
|
|
$
|
(4,419
|
)
|
|
$
|
(1,188
|
)
|
|
$
|
(8,590
|
)
|
|
$
|
(7,151
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains on derivative instruments
|
|
$
|
777
|
|
|
$
|
3,199
|
|
|
$
|
2,382
|
|
|
$
|
8,493
|
|
|
SI
|
|
Interest and fees on loans
|
Income tax expense
|
|
308
|
|
|
1,267
|
|
|
956
|
|
|
3,360
|
|
|
|
|
|
||||
|
|
$
|
469
|
|
|
$
|
1,932
|
|
|
$
|
1,426
|
|
|
$
|
5,133
|
|
|
|
|
|
8.
|
INCOME TAXES
|
9.
|
FAIR VALUE
|
(In thousands)
|
June 30, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
38,498
|
|
|
$
|
1,744,132
|
|
|
|
|
$
|
1,782,630
|
|
||
Municipal securities
|
|
|
52,835
|
|
|
$
|
13,544
|
|
|
66,379
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Trust preferred – banks and insurance
|
|
|
|
|
|
1,030,293
|
|
|
1,030,293
|
|
|||||
Trust preferred – real estate investment trusts
|
|
|
|
|
18,499
|
|
|
18,499
|
|
||||||
Auction rate
|
|
|
|
|
6,554
|
|
|
6,554
|
|
||||||
Other (including ABS CDOs)
|
|
|
3,147
|
|
|
17,324
|
|
|
20,471
|
|
|||||
Mutual funds and stock
|
262,816
|
|
|
5,753
|
|
|
|
|
268,569
|
|
|||||
|
301,314
|
|
|
1,805,867
|
|
|
1,086,214
|
|
|
3,193,395
|
|
||||
Trading account
|
|
|
26,385
|
|
|
|
|
26,385
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Private equity
|
|
|
5,128
|
|
|
75,517
|
|
|
80,645
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
1,584
|
|
|
|
|
1,584
|
|
||||||
Interest rate swaps for customers
|
|
|
58,706
|
|
|
|
|
58,706
|
|
||||||
Foreign currency exchange contracts
|
12,227
|
|
|
|
|
|
|
12,227
|
|
||||||
|
12,227
|
|
|
60,290
|
|
|
|
|
72,517
|
|
|||||
|
$
|
313,541
|
|
|
$
|
1,897,670
|
|
|
$
|
1,161,731
|
|
|
$
|
3,372,942
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
15,799
|
|
|
|
|
|
|
|
$
|
15,799
|
|
|||
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
$
|
687
|
|
|
|
|
687
|
|
|||||
Interest rate swaps for customers
|
|
|
59,346
|
|
|
|
|
59,346
|
|
||||||
Foreign currency exchange contracts
|
10,648
|
|
|
|
|
|
|
10,648
|
|
||||||
Total return swap
|
|
|
|
|
$
|
4,829
|
|
|
4,829
|
|
|||||
|
10,648
|
|
|
60,033
|
|
|
4,829
|
|
|
75,510
|
|
||||
Other
|
|
|
|
|
289
|
|
|
289
|
|
||||||
|
$
|
26,447
|
|
|
$
|
60,033
|
|
|
$
|
5,118
|
|
|
$
|
91,598
|
|
(In thousands)
|
December 31, 2012
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
102,982
|
|
|
$
|
1,692,637
|
|
|
|
|
$
|
1,795,619
|
|
||
Municipal securities
|
|
|
59,445
|
|
|
$
|
16,551
|
|
|
75,996
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Trust preferred – banks and insurance
|
|
|
121
|
|
|
949,271
|
|
|
949,392
|
|
|||||
Trust preferred – real estate investment trusts
|
|
|
|
|
16,403
|
|
|
16,403
|
|
||||||
Auction rate
|
|
|
|
|
6,515
|
|
|
6,515
|
|
||||||
Other (including ABS CDOs)
|
|
|
4,214
|
|
|
15,160
|
|
|
19,374
|
|
|||||
Mutual funds and stock
|
219,214
|
|
|
8,797
|
|
|
|
|
228,011
|
|
|||||
|
322,196
|
|
|
1,765,214
|
|
|
1,003,900
|
|
|
3,091,310
|
|
||||
Trading account
|
|
|
28,290
|
|
|
|
|
28,290
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Private equity
|
|
|
5,132
|
|
|
64,223
|
|
|
69,355
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
2,850
|
|
|
|
|
2,850
|
|
||||||
Interest rate swaps for customers
|
|
|
79,579
|
|
|
|
|
79,579
|
|
||||||
Foreign currency exchange contracts
|
4,404
|
|
|
|
|
|
|
4,404
|
|
||||||
|
4,404
|
|
|
82,429
|
|
|
|
|
86,833
|
|
|||||
|
$
|
326,600
|
|
|
$
|
1,881,065
|
|
|
$
|
1,068,123
|
|
|
$
|
3,275,788
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
26,735
|
|
|
|
|
|
|
$
|
26,735
|
|
||||
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
$
|
1,142
|
|
|
|
|
1,142
|
|
|||||
Interest rate swaps for customers
|
|
|
82,926
|
|
|
|
|
82,926
|
|
||||||
Foreign currency exchange contracts
|
3,159
|
|
|
|
|
|
|
3,159
|
|
||||||
Total return swap
|
|
|
|
|
$
|
5,127
|
|
|
5,127
|
|
|||||
|
3,159
|
|
|
84,068
|
|
|
5,127
|
|
|
92,354
|
|
||||
Other
|
|
|
|
|
124
|
|
|
124
|
|
||||||
|
$
|
29,894
|
|
|
$
|
84,068
|
|
|
$
|
5,251
|
|
|
$
|
119,213
|
|
(Dollars in thousands)
|
Fair value at June 30, 2013
|
|
Valuation
approach
|
|
Constant default
rate (“CDR”)
|
|
Loss
severity
|
|
Prepayment rate
|
||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||
Trust preferred – predominantly banks
|
$
|
879,765
|
|
|
Income
|
|
Pool specific
3
|
|
100%
|
|
Pool specific
7
|
Trust preferred – predominantly insurance
|
279,678
|
|
|
Income
|
|
Pool specific
4
|
|
100%
|
|
5% per year
|
|
Trust preferred – individual banks
|
22,081
|
|
|
Market
|
|
|
|
|
|
|
|
|
1,181,524
|
|
1
|
|
|
|
|
|
|
|
|
Trust preferred – real estate investment trusts
|
18,499
|
|
|
Income
|
|
Pool specific
5
|
|
60-100%
|
|
0% per year
|
|
Other (including ABS CDOs)
|
29,126
|
|
2
|
Income
|
|
Collateral specific
6
|
|
70-100%
|
|
Collateral weighted
average life
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2013
|
||||||||||||||||||||||||||||||
(In thousands)
|
Municipal
securities
|
|
Trust
preferred – banks and insurance
|
|
Trust
preferred
– REIT
|
|
Auction
rate
|
|
Other
asset-backed
|
|
Private
equity
investments
|
|
Derivatives
|
|
Other
liabilities
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at March 31, 2013
|
$
|
17,043
|
|
|
$
|
1,003,102
|
|
|
$
|
17,306
|
|
|
$
|
6,524
|
|
|
$
|
15,393
|
|
|
$
|
69,706
|
|
|
$
|
(4,875
|
)
|
|
$
|
(195
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
|
|
|
797
|
|
|
63
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
2,160
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,450
|
)
|
|
|
|||||||||||||||
Equity securities gains, net
|
|
|
|
|
|
|
|
|
|
|
1,340
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains (losses), net
|
15
|
|
|
(1,190
|
)
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(4,047
|
)
|
|
(170
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(94
|
)
|
|||||||||||||||
Other comprehensive income
|
197
|
|
|
52,312
|
|
|
1,300
|
|
|
30
|
|
|
1,972
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
2,882
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
(7,015
|
)
|
|
|
|
|
|
|
|
(387
|
)
|
|
|
|
|
||||||||||||||
Redemptions and paydowns
|
(3,711
|
)
|
|
(13,666
|
)
|
|
|
|
|
|
|
(64
|
)
|
|
(184
|
)
|
|
5,496
|
|
|
|
||||||||||
Balance at June 30, 2013
|
$
|
13,544
|
|
|
$
|
1,030,293
|
|
|
$
|
18,499
|
|
|
$
|
6,554
|
|
|
$
|
17,324
|
|
|
$
|
75,517
|
|
|
$
|
(4,829
|
)
|
|
$
|
(289
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Six Months Ended June 30, 2013
|
||||||||||||||||||||||||||||||
(In thousands)
|
Municipal
securities
|
|
Trust
preferred – banks and insurance
|
|
Trust
preferred – REIT
|
|
Auction
rate
|
|
Other
asset-backed
|
|
Private
equity
investments
|
|
Derivatives
|
|
Other
liabilities
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2012
|
$
|
16,551
|
|
|
$
|
949,271
|
|
|
$
|
16,403
|
|
|
$
|
6,515
|
|
|
$
|
15,160
|
|
|
$
|
64,223
|
|
|
(5,127
|
)
|
|
$
|
(124
|
)
|
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
21
|
|
|
1,612
|
|
|
126
|
|
|
1
|
|
|
14
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
5,149
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,008
|
)
|
|
|
|||||||||||||||
Equity securities gains, net
|
|
|
|
|
|
|
|
|
|
|
3,739
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, net
|
36
|
|
|
2,036
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(13,761
|
)
|
|
(170
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(165
|
)
|
|||||||||||||||
Other comprehensive income
|
922
|
|
|
130,962
|
|
|
2,140
|
|
|
38
|
|
|
4,623
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
3,841
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
(7,015
|
)
|
|
|
|
|
|
|
|
(1,120
|
)
|
|
|
|
|
||||||||||||||
Redemptions and paydowns
|
(3,986
|
)
|
|
(32,812
|
)
|
|
|
|
|
|
|
(2,517
|
)
|
|
(315
|
)
|
|
11,306
|
|
|
|
||||||||||
Balance at June 30, 2013
|
$
|
13,544
|
|
|
$
|
1,030,293
|
|
|
$
|
18,499
|
|
|
$
|
6,554
|
|
|
$
|
17,324
|
|
|
$
|
75,517
|
|
|
$
|
(4,829
|
)
|
|
$
|
(289
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2012
|
||||||||||||||||||||||||||||||
(In thousands)
|
Municipal
securities
|
|
Trust
preferred – banks and insurance
|
|
Trust
preferred – REIT
|
|
Auction
rate
|
|
Other
asset-backed
|
|
Private
equity
investments
|
|
Derivatives
|
|
Other
liabilities
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at March 31, 2012
|
$
|
17,109
|
|
|
$
|
935,870
|
|
|
$
|
16,000
|
|
|
$
|
40,873
|
|
|
$
|
40,322
|
|
|
$
|
134,746
|
|
|
$
|
(5,218
|
)
|
|
$
|
(205
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
21
|
|
|
2,475
|
|
|
61
|
|
|
1
|
|
|
80
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
6,820
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,450
|
)
|
|
|
|||||||||||||||
Equity securities losses, net
|
|
|
|
|
|
|
|
|
|
|
(10,086
|
)
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, net
|
|
|
|
3,224
|
|
|
|
|
2,246
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(6,967
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84
|
|
|||||||||||||||
Other comprehensive income (loss)
|
(595
|
)
|
|
3,534
|
|
|
(1,630
|
)
|
|
546
|
|
|
569
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
4,397
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
(9,064
|
)
|
|
|
|
|
|||||||||||||||
Redemptions and paydowns
|
(175
|
)
|
|
(11,686
|
)
|
|
|
|
(36,500
|
)
|
|
(305
|
)
|
|
(5,325
|
)
|
|
5,331
|
|
|
|
||||||||||
Balance at June 30, 2012
|
$
|
16,360
|
|
|
$
|
926,450
|
|
|
$
|
14,431
|
|
|
$
|
7,166
|
|
|
$
|
40,666
|
|
|
$
|
121,488
|
|
|
$
|
(5,337
|
)
|
|
$
|
(121
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Six Months Ended June 30, 2012
|
||||||||||||||||||||||||||||||
(In thousands)
|
Municipal
securities
|
|
Trust
preferred – banks and insurance
|
|
Trust
preferred – REIT
|
|
Auction
rate
|
|
Other
asset-backed
|
|
Private
equity
investments
|
|
Derivatives
|
|
Other
liabilities
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2011
|
$
|
17,381
|
|
|
$
|
929,356
|
|
|
$
|
18,645
|
|
|
$
|
70,020
|
|
|
$
|
43,546
|
|
|
$
|
128,348
|
|
|
$
|
(5,422
|
)
|
|
$
|
(86
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
64
|
|
|
5,028
|
|
|
101
|
|
|
2
|
|
|
160
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
8,559
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,900
|
)
|
|
|
|||||||||||||||
Equity securities losses, net
|
|
|
|
|
|
|
|
|
|
|
(625
|
)
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, (losses), net
|
|
|
7,776
|
|
|
|
|
4,134
|
|
|
(5,773
|
)
|
|
|
|
|
|
|
|||||||||||||
Net impairment losses on investment securities
|
|
|
(17,176
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35
|
)
|
|||||||||||||||
Other comprehensive income (loss)
|
(635
|
)
|
|
33,733
|
|
|
(4,315
|
)
|
|
1,335
|
|
|
5,883
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
7,379
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
(14,718
|
)
|
|
|
|
|
|||||||||||||||
Redemptions and paydowns
|
(450
|
)
|
|
(32,267
|
)
|
|
|
|
(68,325
|
)
|
|
(3,150
|
)
|
|
(7,455
|
)
|
|
10,985
|
|
|
|
||||||||||
Balance at June 30, 2012
|
$
|
16,360
|
|
|
$
|
926,450
|
|
|
$
|
14,431
|
|
|
$
|
7,166
|
|
|
$
|
40,666
|
|
|
$
|
121,488
|
|
|
$
|
(5,337
|
)
|
|
$
|
(121
|
)
|
(In thousands)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Dividends and other investment income (loss)
|
$
|
(60
|
)
|
|
$
|
3,859
|
|
|
$
|
(45
|
)
|
|
$
|
4,516
|
|
Fixed income securities gains (losses), net
|
(1,161
|
)
|
|
5,470
|
|
|
2,116
|
|
|
6,137
|
|
||||
Equity securities gains, net
|
—
|
|
|
10,417
|
|
|
—
|
|
|
10,359
|
|
(In thousands)
|
Fair value at June 30, 2013
|
|
Fair value at December 31, 2012
|
||||||||||||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
HTM securities adjusted for OTTI
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,524
|
|
|
$
|
23,524
|
|
Impaired loans
|
—
|
|
|
4,904
|
|
|
—
|
|
|
4,904
|
|
|
—
|
|
|
3,789
|
|
|
—
|
|
|
3,789
|
|
||||||||
Private equity investments, carried at cost
|
—
|
|
|
—
|
|
|
5,092
|
|
|
5,092
|
|
|
—
|
|
|
—
|
|
|
13,520
|
|
|
13,520
|
|
||||||||
Other real estate owned
|
—
|
|
|
57,502
|
|
|
—
|
|
|
57,502
|
|
|
—
|
|
|
58,954
|
|
|
—
|
|
|
58,954
|
|
||||||||
|
$
|
—
|
|
|
$
|
62,406
|
|
|
$
|
5,092
|
|
|
$
|
67,498
|
|
|
$
|
—
|
|
|
$
|
62,743
|
|
|
$
|
37,044
|
|
|
$
|
99,787
|
|
|
Gains (losses) from fair value changes
|
||||||||||||||
(In thousands)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
HTM securities adjusted for OTTI
|
$
|
—
|
|
|
$
|
(341
|
)
|
|
$
|
(403
|
)
|
|
$
|
(341
|
)
|
Impaired loans
|
(832
|
)
|
|
(640
|
)
|
|
(1,566
|
)
|
|
(3,041
|
)
|
||||
Private equity investments, carried at cost
|
(609
|
)
|
|
(170
|
)
|
|
(1,429
|
)
|
|
(1,752
|
)
|
||||
Other real estate owned
|
(2,156
|
)
|
|
(6,429
|
)
|
|
(6,468
|
)
|
|
(12,416
|
)
|
||||
|
$
|
(3,597
|
)
|
|
$
|
(7,580
|
)
|
|
$
|
(9,866
|
)
|
|
$
|
(17,550
|
)
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||
(In thousands)
|
Carrying
value
|
|
Estimated
fair value
|
|
Carrying
value
|
|
Estimated
fair value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
HTM investment securities
|
$
|
783,371
|
|
|
$
|
734,292
|
|
|
$
|
756,909
|
|
|
$
|
674,741
|
|
Loans and leases (including loans held for sale), net of allowance
|
37,538,652
|
|
|
37,419,383
|
|
|
37,020,811
|
|
|
37,024,198
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
2,810,431
|
|
|
2,825,093
|
|
|
2,962,931
|
|
|
2,988,714
|
|
||||
Foreign deposits
|
1,514,270
|
|
|
1,513,920
|
|
|
1,804,060
|
|
|
1,803,625
|
|
||||
Other short-term borrowings
|
—
|
|
|
—
|
|
|
5,409
|
|
|
5,421
|
|
||||
Long-term debt (less fair value hedges)
|
2,166,932
|
|
|
2,405,548
|
|
|
2,329,323
|
|
|
2,636,422
|
|
10.
|
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES
|
(In thousands)
|
June 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Unfunded commitments to extend credit
|
$
|
15,003,402
|
|
|
$
|
14,277,347
|
|
Standby letters of credit:
|
|
|
|
||||
Financial
|
818,076
|
|
|
774,427
|
|
||
Performance
|
212,369
|
|
|
190,029
|
|
||
Commercial letters of credit
|
93,954
|
|
|
91,978
|
|
•
|
a complaint relating to allegedly wrongful acts in our processing of overdraft fees on debit card transactions in which the plaintiffs seek monetary awards on the basis of various common law claims,
Barlow, et. al. v. Zions First National Bank and Zions Bancorporation
, pending in the United States District Court for the District of Utah;
|
•
|
a complaint relating to our banking relationships with customers that allegedly engaged in wrongful telemarketing practices in which the plaintiff seeks a trebled monetary award under the federal RICO Act,
Reyes v. Zions First National Bank, et. al.
, pending in the United States District Court for the Eastern District of Pennsylvania; and
|
•
|
a complaint arising from our banking relationships with Frederick Berg and a number of investment funds controlled by him using the “Meridian” brand name, in which the liquidating trustee for the funds seeks an award from us, on the basis of aiding and abetting liability, for monetary damages suffered by victims of a fraud allegedly perpetrated by Berg,
In re Consolidated Meridian Funds a/k/a Meridian Investors Trust, Mark Calvert as Liquidating Trustee, et. al. vs. Zions Bancorporation and The Commerce Bank of Washington, N.A.
, pending in the United States Bankruptcy Court for the Western District of Washington.
|
•
|
possible money laundering activities of a customer of one of our banking subsidiaries and the anti-money laundering practices of that bank (conducted by the United States Attorneys Office for the Southern District of New York); and
|
•
|
the practices of our subsidiary, Zions Bank; our former subsidiary, NetDeposit, LLC; and possibly other of our affiliates relating primarily to payment processing for allegedly fraudulent telemarketers connected with the Reyes case noted previously (conducted by the United States Attorney’s Office for the Eastern District of Pennsylvania).
|
11.
|
RETIREMENT PLANS
|
|
|
Pension benefits
|
|
Supplemental
retirement
benefits
|
|
Postretirement
benefits
|
|
Pension benefits
|
|
Supplemental
retirement
benefits
|
|
Postretirement
benefits
|
||||||||||||||||||||||||||||||||||||
(In thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Service cost
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
18
|
|
Interest cost
|
|
1,739
|
|
|
1,892
|
|
|
101
|
|
|
115
|
|
|
10
|
|
|
12
|
|
|
3,478
|
|
|
3,783
|
|
|
202
|
|
|
230
|
|
|
20
|
|
|
23
|
|
||||||||||||
Expected return on plan assets
|
|
(3,027
|
)
|
|
(2,827
|
)
|
|
|
|
|
|
|
|
|
|
(6,055
|
)
|
|
(5,654
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Amortization of prior service
cost (credit)
|
|
|
|
|
|
31
|
|
|
31
|
|
|
(37
|
)
|
|
(61
|
)
|
|
|
|
|
|
62
|
|
|
62
|
|
|
(75
|
)
|
|
(122
|
)
|
||||||||||||||||
Amortization of net actuarial
(gain) loss
|
|
2,157
|
|
|
2,345
|
|
|
17
|
|
|
(28
|
)
|
|
(19
|
)
|
|
(22
|
)
|
|
4,315
|
|
|
4,691
|
|
|
35
|
|
|
(57
|
)
|
|
(38
|
)
|
|
(43
|
)
|
||||||||||||
Net periodic benefit cost (credit)
|
|
$
|
869
|
|
|
$
|
1,423
|
|
|
$
|
149
|
|
|
$
|
118
|
|
|
$
|
(38
|
)
|
|
$
|
(62
|
)
|
|
$
|
1,738
|
|
|
$
|
2,845
|
|
|
$
|
299
|
|
|
$
|
235
|
|
|
$
|
(77
|
)
|
|
$
|
(124
|
)
|
12.
|
OPERATING SEGMENT INFORMATION
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
statements with respect to the beliefs, plans, objectives, goals, guidelines, expectations, anticipations, and future financial condition, results of operations and performance of Zions Bancorporation (“the Parent”) and its subsidiaries (collectively “the Company,” “Zions,” “we,” “our,” “us”);
|
•
|
statements preceded by, followed by or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” or similar expressions.
|
•
|
the Company’s ability to successfully execute its business plans, manage its risks, and achieve its objectives;
|
•
|
changes in local, national and international political and economic conditions, including without limitation the political and economic effects of the recent economic crisis, delay of recovery from that crisis, economic conditions and fiscal imbalances in the United States and other countries, potential or actual downgrades in rating of sovereign debt issued by the United States and other countries, and other major developments, including wars, military actions, and terrorist attacks;
|
•
|
changes in financial market conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including without limitation reduced rates of business formation and growth, commercial and residential real estate development and real estate prices;
|
•
|
fluctuations in markets for equity, fixed-income, commercial paper and other securities, including availability, market liquidity levels, and pricing;
|
•
|
changes in interest rates, the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows and competition;
|
•
|
acquisitions and integration of acquired businesses;
|
•
|
increases in the levels of losses, customer bankruptcies, bank failures, claims, and assessments;
|
•
|
changes in fiscal, monetary, regulatory, trade and tax policies and laws, and regulatory assessments and fees, including policies of the U.S. Department of Treasury, the OCC, the Board of Governors of the Federal Reserve Board System, the FDIC, the SEC, and the CFPB;
|
•
|
the impact of executive compensation rules under the Dodd-Frank Act and banking regulations which may impact the ability of the Company and other American financial institutions to retain and recruit executives and other personnel necessary for their businesses and competitiveness;
|
•
|
the impact of the Dodd-Frank Act and of new international standards known as Basel III, and rules and regulations thereunder, many of which have not yet been promulgated or are not yet effective, on our required regulatory capital and liquidity levels, governmental assessments on us, the scope of business activities in which we may engage, the manner in which we engage in such activities, the fees we may charge for certain products and services, and other matters affected by the Dodd-Frank Act and these international standards;
|
•
|
continuing consolidation in the financial services industry;
|
•
|
new legal claims against the Company, including litigation, arbitration and proceedings brought by governmental or self-regulatory agencies, or changes in existing legal matters;
|
•
|
success in gaining regulatory approvals, when required;
|
•
|
changes in consumer spending and savings habits;
|
•
|
increased competitive challenges and expanding product and pricing pressures among financial institutions;
|
•
|
inflation and deflation;
|
•
|
technological changes and the Company’s implementation of new technologies;
|
•
|
the Company’s ability to develop and maintain secure and reliable information technology systems;
|
•
|
legislation or regulatory changes which adversely affect the Company’s operations or business;
|
•
|
the Company’s ability to comply with applicable laws and regulations;
|
•
|
changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; and
|
•
|
costs of deposit insurance and changes with respect to FDIC insurance coverage levels.
|
ABS
|
Asset-Backed Security
|
FDIC
|
Federal Deposit Insurance Corporation
|
ACL
|
Allowance for Credit Losses
|
FHLB
|
Federal Home Loan Bank
|
AFS
|
Available-for-Sale
|
FICO
|
Fair Isaac Corporation
|
ALCO
|
Asset/Liability Committee
|
FRB
|
Federal Reserve Board
|
ALLL
|
Allowance for Loan and Lease Losses
|
GAAP
|
Generally Accepted Accounting Principles
|
Amegy
|
Amegy Corporation
|
HECL
|
Home Equity Credit Line
|
AOCI
|
Accumulated Other Comprehensive Income
|
HTM
|
Held-to-Maturity
|
ASC
|
Accounting Standards Codification
|
IA
|
Indemnification Asset
|
ASU
|
Accounting Standards Update
|
IFRS
|
International Financial Reporting Standards
|
ATM
|
Automated Teller Machine
|
ISDA
|
International Swap Dealer Association
|
bps
|
basis points
|
LGD
|
Loss Given Default
|
CB&T
|
California Bank & Trust
|
LIBOR
|
London Interbank Offered Rate
|
CCAR
|
Comprehensive Capital Analysis and Review
|
Lockhart
|
Lockhart Funding LLC
|
CDO
|
Collateralized Debt Obligation
|
MCC
|
Model Control Committee
|
CDR
|
Constant Default Rate
|
MVE
|
Market Value of Equity
|
CET1
|
Common Equity Tier 1
|
NBAZ
|
National Bank of Arizona
|
CFPB
|
Consumer Financial Protection Bureau
|
NRSRO
|
Nationally Recognized Statistical Rating Organization
|
CLTV
|
Combined Loan-to-Value Ratio
|
NSB
|
Nevada State Bank
|
CPR
|
Constant Prepayment Rate
|
OCC
|
Office of the Comptroller of the Currency
|
CRE
|
Commercial Real Estate
|
OCI
|
Other Comprehensive Income
|
DB
|
Deutsche Bank AG
|
OREO
|
Other Real Estate Owned
|
DBRS
|
Dominion Bond Rating Service
|
OTC
|
Over-the-Counter
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
OTTI
|
Other-Than-Temporary Impairment
|
DTA
|
Deferred Tax Asset
|
Parent
|
Zions Bancorporation
|
DTL
|
Deferred Tax Liability
|
PCI
|
Purchased Credit Impaired
|
FAMC
|
Federal Agricultural Mortgage Corporation, or “Farmer Mac”
|
PD
|
Probability of Default
|
FASB
|
Financial Accounting Standards Board
|
PIK
|
Payment in Kind
|
REIT
|
Real Estate Investment Trust
|
TCBO
|
The Commerce Bank of Oregon
|
RULC
|
Reserve for Unfunded Lending Commitments
|
TCBW
|
The Commerce Bank of Washington
|
SBA
|
Small Business Administration
|
TDR
|
Troubled Debt Restructuring
|
SBIC
|
Small Business Investment Company
|
TRS
|
Total Return Swap
|
SEC
|
Securities and Exchange Commission
|
Vectra
|
Vectra Bank Colorado
|
SOC
|
Securitization Oversight Committee
|
Zions Bank
|
Zions First National Bank
|
TAG
|
Transaction Account Guarantee
|
ZMSC
|
Zions Management Services Company
|
TARP
|
Troubled Asset Relief Program
|
|
|
•
|
$32.8 million decrease in the provision for loan losses;
|
•
|
$23.7 million reduction in total interest expense;
|
•
|
$8.9 million decrease in preferred stock dividends;
|
•
|
$7.9 million decrease in income tax expense; and
|
•
|
$4.9 million decline in other real estate expense.
|
•
|
$40.3 million increase in debt extinguishment cost;
|
•
|
$19.4 million decrease in total interest income;
|
•
|
$10.7 million increase in other noninterest expense;
|
•
|
$10.2 million reduction in dividends and other investment income; and
|
•
|
$6.7 million reduction in fixed income securities net gains.
|
•
|
$77.5 million decrease in the provision for loan losses;
|
•
|
$50.7 million decrease in preferred stock dividends;
|
•
|
$38.4 million decline in total interest expense;
|
•
|
$10.7 million decrease in other real estate expense; and
|
•
|
$6.0 million reduction in credit related expense.
|
•
|
$53.5 million decline in total interest income;
|
•
|
$40.3 million increase in debt extinguishment cost;
|
•
|
$25.5 million increase in other noninterest expense;
|
•
|
$11.7 million increase in salaries and employee benefits; and
|
•
|
$7.0 million reduction in dividends and other investment income.
|
•
|
the fair value discount on the debt; and
|
•
|
the value of the beneficial conversion feature which added the right of the debt holder to convert the debt into preferred stock.
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||
(In millions)
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
September 30,
2012
|
|
June 30,
2012
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes (GAAP)
|
|
|
$
|
126.1
|
|
|
|
|
$
|
171.0
|
|
|
|
|
$
|
87.5
|
|
|
|
|
$
|
170.3
|
|
|
|
|
$
|
142.5
|
|
|
Convertible subordinated debt discount amortization
|
|
|
12.1
|
|
|
|
|
11.6
|
|
|
|
|
11.0
|
|
|
|
|
10.5
|
|
|
|
|
10.7
|
|
|
|||||
Accelerated convertible subordinated debt discount amortization
|
|
|
0.1
|
|
|
|
|
0.3
|
|
|
|
|
1.1
|
|
|
|
|
2.0
|
|
|
|
|
16.2
|
|
|
|||||
Income before income taxes and subordinated debt conversions (non-GAAP)
|
|
|
$
|
138.3
|
|
|
|
|
$
|
182.9
|
|
|
|
|
$
|
99.6
|
|
|
|
|
$
|
182.8
|
|
|
|
|
$
|
169.4
|
|
|
•
|
lower yields on loans excluding FDIC-supported loans and AFS investment securities; and
|
•
|
increased balance of low-yielding money market investments.
|
•
|
lower yields on deposit funding and long-term debt; and
|
•
|
higher yields on FDIC-supported loans.
|
|
|
Three Months Ended
June 30, 2013
|
|
Three Months Ended
June 30, 2012
|
||||||||||||||||||
(In thousands)
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
|
$
|
8,652,403
|
|
|
$
|
5,764
|
|
|
0.27
|
%
|
|
$
|
7,786,191
|
|
|
$
|
5,099
|
|
|
0.26
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
|
740,839
|
|
|
9,372
|
|
|
5.07
|
%
|
|
797,843
|
|
|
11,339
|
|
|
5.72
|
%
|
||||
Available-for-sale
|
|
3,090,910
|
|
|
19,303
|
|
|
2.50
|
%
|
|
3,084,771
|
|
|
25,603
|
|
|
3.34
|
%
|
||||
Trading account
|
|
36,296
|
|
|
287
|
|
|
3.17
|
%
|
|
18,877
|
|
|
148
|
|
|
3.15
|
%
|
||||
Total securities
|
|
3,868,045
|
|
|
28,962
|
|
|
3.00
|
%
|
|
3,901,491
|
|
|
37,090
|
|
|
3.82
|
%
|
||||
Loans held for sale
|
|
141,313
|
|
|
1,224
|
|
|
3.47
|
%
|
|
157,308
|
|
|
1,561
|
|
|
3.99
|
%
|
||||
Loans
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
|
37,518,549
|
|
|
425,962
|
|
|
4.55
|
%
|
|
36,155,395
|
|
|
449,045
|
|
|
5.00
|
%
|
||||
FDIC-supported loans
|
|
452,849
|
|
|
35,243
|
|
|
31.22
|
%
|
|
661,597
|
|
|
24,416
|
|
|
14.84
|
%
|
||||
Total loans
|
|
37,971,398
|
|
|
461,205
|
|
|
4.87
|
%
|
|
36,816,992
|
|
|
473,461
|
|
|
5.17
|
%
|
||||
Total interest-earning assets
|
|
50,633,159
|
|
|
497,155
|
|
|
3.94
|
%
|
|
48,661,982
|
|
|
517,211
|
|
|
4.27
|
%
|
||||
Cash and due from banks
|
|
1,000,221
|
|
|
|
|
|
|
1,025,681
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(837,651
|
)
|
|
|
|
|
|
(1,006,606
|
)
|
|
|
|
|
||||||||
Goodwill
|
|
1,014,129
|
|
|
|
|
|
|
1,015,129
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
|
45,262
|
|
|
|
|
|
|
61,511
|
|
|
|
|
|
||||||||
Other assets
|
|
2,808,640
|
|
|
|
|
|
|
3,132,314
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
54,663,760
|
|
|
|
|
|
|
$
|
52,890,011
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
|
$
|
22,871,040
|
|
|
10,144
|
|
|
0.18
|
%
|
|
$
|
21,957,941
|
|
|
13,466
|
|
|
0.25
|
%
|
||
Time
|
|
2,842,322
|
|
|
4,179
|
|
|
0.59
|
%
|
|
3,264,853
|
|
|
6,053
|
|
|
0.75
|
%
|
||||
Foreign
|
|
1,642,381
|
|
|
820
|
|
|
0.20
|
%
|
|
1,490,695
|
|
|
1,304
|
|
|
0.35
|
%
|
||||
Total interest-bearing deposits
|
27,355,743
|
|
|
15,143
|
|
|
0.22
|
%
|
|
26,713,489
|
|
|
20,823
|
|
|
0.31
|
%
|
|||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold, not yet purchased
|
|
4,076
|
|
|
—
|
|
|
—
|
%
|
|
6,128
|
|
|
29
|
|
|
1.90
|
%
|
||||
Federal funds purchased and security repurchase agreements
|
|
283,690
|
|
|
78
|
|
|
0.11
|
%
|
|
474,026
|
|
|
161
|
|
|
0.14
|
%
|
||||
Other short-term borrowings
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
13,290
|
|
|
66
|
|
|
2.00
|
%
|
||||
Long-term debt
|
|
2,214,215
|
|
|
47,355
|
|
|
8.58
|
%
|
|
2,329,608
|
|
|
65,165
|
|
|
11.25
|
%
|
||||
Total borrowed funds
|
|
2,501,981
|
|
|
47,433
|
|
|
7.60
|
%
|
|
2,823,052
|
|
|
65,421
|
|
|
9.32
|
%
|
||||
Total interest-bearing liabilities
|
|
29,857,724
|
|
|
62,576
|
|
|
0.84
|
%
|
|
29,536,541
|
|
|
86,244
|
|
|
1.17
|
%
|
||||
Noninterest-bearing deposits
|
|
17,629,219
|
|
|
|
|
|
|
16,228,973
|
|
|
|
|
|
||||||||
Other liabilities
|
|
559,219
|
|
|
|
|
|
|
582,743
|
|
|
|
|
|
||||||||
Total liabilities
|
|
48,046,162
|
|
|
|
|
|
|
46,348,257
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
1,518,823
|
|
|
|
|
|
|
1,830,845
|
|
|
|
|
|
||||||||
Common equity
|
|
5,102,082
|
|
|
|
|
|
|
4,713,318
|
|
|
|
|
|
||||||||
Controlling interest shareholders’ equity
|
6,620,905
|
|
|
|
|
|
|
6,544,163
|
|
|
|
|
|
|||||||||
Noncontrolling interests
|
|
(3,307
|
)
|
|
|
|
|
|
(2,409
|
)
|
|
|
|
|
||||||||
Total shareholders’ equity
|
|
6,617,598
|
|
|
|
|
|
|
6,541,754
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
54,663,760
|
|
|
|
|
|
|
$
|
52,890,011
|
|
|
|
|
|
|||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.10
|
%
|
|||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
434,579
|
|
|
3.44
|
%
|
|
|
|
$
|
430,967
|
|
|
3.56
|
%
|
|
|
Six Months Ended
June 30, 2013
|
|
Six Months Ended
June 30, 2012
|
||||||||||||||||||
(In thousands)
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
|
$
|
8,383,594
|
|
|
$
|
11,203
|
|
|
0.27
|
%
|
|
$
|
7,534,218
|
|
|
$
|
9,727
|
|
|
0.26
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
|
748,745
|
|
|
18,908
|
|
|
5.09
|
%
|
|
798,792
|
|
|
22,338
|
|
|
5.62
|
%
|
||||
Available-for-sale
|
|
3,063,404
|
|
|
37,305
|
|
|
2.46
|
%
|
|
3,089,299
|
|
|
49,307
|
|
|
3.21
|
%
|
||||
Trading account
|
|
29,496
|
|
|
477
|
|
|
3.26
|
%
|
|
30,033
|
|
|
486
|
|
|
3.25
|
%
|
||||
Total securities
|
|
3,841,645
|
|
|
56,690
|
|
|
2.98
|
%
|
|
3,918,124
|
|
|
72,131
|
|
|
3.70
|
%
|
||||
Loans held for sale
|
|
172,780
|
|
|
2,988
|
|
|
3.49
|
%
|
|
166,105
|
|
|
3,063
|
|
|
3.71
|
%
|
||||
Loans
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
|
37,310,024
|
|
|
853,567
|
|
|
4.61
|
%
|
|
36,162,127
|
|
|
908,054
|
|
|
5.05
|
%
|
||||
FDIC-supported loans
|
|
475,625
|
|
|
61,592
|
|
|
26.11
|
%
|
|
687,237
|
|
|
47,975
|
|
|
14.04
|
%
|
||||
Total loans
|
|
37,785,649
|
|
|
915,159
|
|
|
4.88
|
%
|
|
36,849,364
|
|
|
956,029
|
|
|
5.22
|
%
|
||||
Total interest-earning assets
|
|
50,183,668
|
|
|
986,040
|
|
|
3.96
|
%
|
|
48,467,811
|
|
|
1,040,950
|
|
|
4.32
|
%
|
||||
Cash and due from banks
|
|
1,031,593
|
|
|
|
|
|
|
1,074,330
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(860,878
|
)
|
|
|
|
|
|
(1,027,526
|
)
|
|
|
|
|
||||||||
Goodwill
|
|
1,014,129
|
|
|
|
|
|
|
1,015,129
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
|
47,155
|
|
|
|
|
|
|
63,674
|
|
|
|
|
|
||||||||
Other assets
|
|
2,848,774
|
|
|
|
|
|
|
3,141,635
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
54,264,441
|
|
|
|
|
|
|
$
|
52,735,053
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
|
$
|
22,803,524
|
|
|
20,556
|
|
|
0.18
|
%
|
|
$
|
21,929,941
|
|
|
28,830
|
|
|
0.26
|
%
|
||
Time
|
|
2,888,562
|
|
|
8,654
|
|
|
0.60
|
%
|
|
3,317,088
|
|
|
12,693
|
|
|
0.77
|
%
|
||||
Foreign
|
|
1,585,837
|
|
|
1,575
|
|
|
0.20
|
%
|
|
1,449,552
|
|
|
2,713
|
|
|
0.38
|
%
|
||||
Total interest-bearing deposits
|
27,277,923
|
|
|
30,785
|
|
|
0.23
|
%
|
|
26,696,581
|
|
|
44,236
|
|
|
0.33
|
%
|
|||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold, not yet purchased
|
|
2,295
|
|
|
—
|
|
|
—
|
%
|
|
14,443
|
|
|
220
|
|
|
3.06
|
%
|
||||
Federal funds purchased and security repurchase agreements
|
|
286,787
|
|
|
151
|
|
|
0.11
|
%
|
|
501,344
|
|
|
315
|
|
|
0.13
|
%
|
||||
Other short-term borrowings
|
|
1,908
|
|
|
19
|
|
|
2.01
|
%
|
|
30,842
|
|
|
500
|
|
|
3.26
|
%
|
||||
Long-term debt
|
|
2,272,441
|
|
|
98,254
|
|
|
8.72
|
%
|
|
2,160,692
|
|
|
122,372
|
|
|
11.39
|
%
|
||||
Total borrowed funds
|
|
2,563,431
|
|
|
98,424
|
|
|
7.74
|
%
|
|
2,707,321
|
|
|
123,407
|
|
|
9.17
|
%
|
||||
Total interest-bearing liabilities
|
|
29,841,354
|
|
|
129,209
|
|
|
0.87
|
%
|
|
29,403,902
|
|
|
167,643
|
|
|
1.15
|
%
|
||||
Noninterest-bearing deposits
|
|
17,421,371
|
|
|
|
|
|
|
15,960,236
|
|
|
|
|
|
||||||||
Other liabilities
|
|
583,578
|
|
|
|
|
|
|
600,987
|
|
|
|
|
|
||||||||
Total liabilities
|
|
47,846,303
|
|
|
|
|
|
|
45,965,125
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
1,375,064
|
|
|
|
|
|
|
2,093,197
|
|
|
|
|
|
||||||||
Common equity
|
|
5,046,508
|
|
|
|
|
|
|
4,679,020
|
|
|
|
|
|
||||||||
Controlling interest shareholders’ equity
|
6,421,572
|
|
|
|
|
|
|
6,772,217
|
|
|
|
|
|
|||||||||
Noncontrolling interests
|
|
(3,434
|
)
|
|
|
|
|
|
(2,289
|
)
|
|
|
|
|
||||||||
Total shareholders’ equity
|
|
6,418,138
|
|
|
|
|
|
|
6,769,928
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
54,264,441
|
|
|
|
|
|
|
$
|
52,735,053
|
|
|
|
|
|
|||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.09
|
%
|
|
|
|
|
|
3.17
|
%
|
|||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
856,831
|
|
|
3.44
|
%
|
|
|
|
$
|
873,307
|
|
|
3.62
|
%
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(In millions)
|
|
Amortized
cost
|
|
Carrying
value
|
|
Estimated
fair
value
|
|
Amortized
cost
|
|
Carrying
value
|
|
Estimated
fair
value
|
||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
|
$
|
565
|
|
|
$
|
564
|
|
|
$
|
571
|
|
|
$
|
525
|
|
|
$
|
525
|
|
|
$
|
537
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
255
|
|
|
200
|
|
|
151
|
|
|
255
|
|
|
213
|
|
|
126
|
|
|||||||
Other
|
|
21
|
|
|
19
|
|
|
12
|
|
|
22
|
|
|
19
|
|
|
12
|
|
||||||
|
|
841
|
|
|
783
|
|
|
734
|
|
|
802
|
|
|
757
|
|
|
675
|
|
||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
40
|
|
|
40
|
|
|
40
|
|
|
104
|
|
|
105
|
|
|
105
|
|
|||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
|
264
|
|
|
267
|
|
|
267
|
|
|
109
|
|
|
113
|
|
|
113
|
|
||||||
Agency guaranteed mortgage-backed securities
|
335
|
|
|
346
|
|
|
346
|
|
|
407
|
|
|
425
|
|
|
425
|
|
|||||||
Small Business Administration loan-backed securities
|
|
1,094
|
|
|
1,130
|
|
|
1,130
|
|
|
1,124
|
|
|
1,153
|
|
|
1,153
|
|
||||||
Municipal securities
|
|
66
|
|
|
66
|
|
|
66
|
|
|
75
|
|
|
76
|
|
|
76
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
1,546
|
|
|
1,030
|
|
|
1,030
|
|
|
1,596
|
|
|
949
|
|
|
949
|
|
|||||||
Trust preferred securities – real estate
investment trusts
|
40
|
|
|
19
|
|
|
19
|
|
|
41
|
|
|
16
|
|
|
16
|
|
|||||||
Auction rate securities
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
||||||
Other
|
|
22
|
|
|
20
|
|
|
20
|
|
|
26
|
|
|
19
|
|
|
19
|
|
||||||
|
|
3,414
|
|
|
2,925
|
|
|
2,925
|
|
|
3,489
|
|
|
2,863
|
|
|
2,863
|
|
||||||
Mutual funds and other
|
|
276
|
|
|
269
|
|
|
269
|
|
|
228
|
|
|
228
|
|
|
228
|
|
||||||
|
|
3,690
|
|
|
3,194
|
|
|
3,194
|
|
|
3,717
|
|
|
3,091
|
|
|
3,091
|
|
||||||
Total
|
|
$
|
4,531
|
|
|
$
|
3,977
|
|
|
$
|
3,928
|
|
|
$
|
4,519
|
|
|
$
|
3,848
|
|
|
$
|
3,766
|
|
|
|
June 30, 2013
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Net unrealized losses recognized
in AOCI
1
|
|
Weighted average discount rate
2
|
|
% of carrying value to par
|
|
|
||||||||||||||||||
(Amounts in millions)
|
|
No. of
tranches
|
|
Par
amount
|
Amortized
cost
|
Carrying
value
|
|
June 30, 2013
|
|
March 31, 2013
|
|
Change
|
|||||||||||||||||||||
Performing CDOs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Predominantly bank CDOs
|
25
|
|
|
$
|
753
|
|
|
$
|
677
|
|
|
$
|
537
|
|
|
|
$
|
(140
|
)
|
|
|
|
5.7%
|
|
|
71%
|
|
72%
|
|
(1)%
|
|||
Insurance-only CDOs
|
|
22
|
|
|
446
|
|
|
442
|
|
|
335
|
|
|
|
(107
|
)
|
|
|
|
7.9%
|
|
|
75%
|
|
74%
|
|
1%
|
||||||
Other CDOs
|
|
6
|
|
|
51
|
|
|
40
|
|
|
37
|
|
|
|
(3
|
)
|
|
|
|
9.7%
|
|
|
73%
|
|
73%
|
|
—%
|
||||||
Total performing CDOs
|
|
53
|
|
|
1,250
|
|
|
1,159
|
|
|
909
|
|
|
|
(250
|
)
|
|
|
|
6.7%
|
|
|
73%
|
|
73%
|
|
—%
|
||||||
Nonperforming CDOs
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Credit impairment prior to last 12 months
|
|
14
|
|
|
272
|
|
|
197
|
|
|
108
|
|
|
|
(89
|
)
|
|
|
|
10.1%
|
|
|
40%
|
|
31%
|
|
9%
|
||||||
Credit impairment during last 12 months
|
|
44
|
|
|
849
|
|
|
501
|
|
|
245
|
|
|
|
(256
|
)
|
|
|
|
9.5%
|
|
|
29%
|
|
26%
|
|
3%
|
||||||
Total nonperforming CDOs
|
58
|
|
|
1,121
|
|
|
698
|
|
|
353
|
|
|
|
(345
|
)
|
|
|
|
9.7%
|
|
|
31%
|
|
27%
|
|
4%
|
|||||||
Total CDOs
|
|
111
|
|
|
$
|
2,371
|
|
|
$
|
1,857
|
|
|
$
|
1,262
|
|
|
|
$
|
(595
|
)
|
|
|
|
8.1%
|
|
|
53%
|
|
51%
|
|
2%
|
||
|
|
March 31, 2013
|
|
|
|||||||||||||||||||||||||||||
(Amounts in millions)
|
|
No. of
tranches
|
|
Par
amount
|
Amortized
cost
|
Carrying
value
|
Net unrealized losses recognized in AOCI
1
|
|
Weighted average discount rate
2
|
|
% of carrying value to par
|
|
|
|
|
||||||||||||||||||
Performing CDOs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Predominantly bank CDOs
|
27
|
|
|
$
|
774
|
|
|
$
|
694
|
|
|
$
|
560
|
|
|
|
$
|
(134
|
)
|
|
|
|
5.9%
|
|
|
72%
|
|
|
|
|
|||
Insurance-only CDOs
|
|
22
|
|
|
447
|
|
|
443
|
|
|
331
|
|
|
|
(112
|
)
|
|
|
|
7.9%
|
|
|
74%
|
|
|
|
|
||||||
Other CDOs
|
|
6
|
|
|
51
|
|
|
40
|
|
|
37
|
|
|
|
(3
|
)
|
|
|
|
9.6%
|
|
|
73%
|
|
|
|
|
||||||
Total performing CDOs
|
|
55
|
|
|
1,272
|
|
|
1,177
|
|
|
928
|
|
|
|
(249
|
)
|
|
|
|
6.7%
|
|
|
73%
|
|
|
|
|
||||||
Nonperforming CDOs
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Credit impairment prior to last 12 months
|
|
16
|
|
|
323
|
|
|
207
|
|
|
99
|
|
|
|
(108
|
)
|
|
|
|
10.4
|
%
|
|
|
31
|
%
|
|
|
|
|
||||
Credit impairment during last 12 months
|
|
42
|
|
|
804
|
|
|
500
|
|
|
206
|
|
|
|
(294
|
)
|
|
|
|
11.2
|
%
|
|
|
26
|
%
|
|
|
|
|
||||
Total nonperforming CDOs
|
58
|
|
|
1,127
|
|
|
707
|
|
|
305
|
|
|
|
(402
|
)
|
|
|
|
11.0%
|
|
|
27%
|
|
|
|
|
|||||||
Total CDOs
|
|
113
|
|
|
$
|
2,399
|
|
|
$
|
1,884
|
|
|
$
|
1,233
|
|
|
|
$
|
(651
|
)
|
|
|
|
8.7%
|
|
|
51%
|
|
|
|
|
BANK AND INSURANCE TRUST PREFERRED CDOs
|
|||||||||||||||||
|
|
Six Months Ended
June 30, 2013
|
|||||||||||||||
(In millions)
|
|
No. of securities
|
|
Par
amount
|
|
Amortized cost
|
|
Fair
value
|
|||||||||
Rating changes
1
|
|
|
|
|
|
|
|
|
|
|
|||||||
Upgrade
|
|
13
|
|
|
$
|
424
|
|
|
|
$
|
383
|
|
|
|
$
|
292
|
|
No change
|
|
87
|
|
|
1,820
|
|
|
|
1,393
|
|
|
|
867
|
|
|||
Downgrade
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|||
|
|
100
|
|
|
$
|
2,244
|
|
|
|
$
|
1,776
|
|
|
|
$
|
1,159
|
|
(Amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Held-to-maturity
|
|
Available-for-sale
|
||||||||||||||
Fair value at June 30, 2013
|
|
|
$
|
151
|
|
|
|
|
$
|
1,004
|
|
|
|
||||||
|
|
|
Incremental
|
|
Cumulative
|
|
Incremental
|
|
Cumulative
|
||||||||||
Currently Modeled Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expected collateral credit losses
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss percentage from currently defaulted or deferring collateral
2
|
|
|
5.5
|
%
|
|
|
|
|
24.3
|
%
|
|||||||||
Projected loss percentage from currently performing collateral
|
|
|
|
|
|
|
|
|
|||||||||||
1-year
|
|
|
0.3
|
%
|
|
|
5.8
|
%
|
|
0.4
|
%
|
|
|
24.6
|
%
|
||||
years 2-5
|
|
|
1.8
|
%
|
|
|
7.6
|
%
|
|
1.5
|
%
|
|
|
26.2
|
%
|
||||
years 6-30
|
|
|
11.0
|
%
|
|
|
18.6
|
%
|
|
9.5
|
%
|
|
|
35.7
|
%
|
||||
Discount rate
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average spread over LIBOR
|
|
|
747
|
|
bp
|
|
|
|
771
|
|
bp
|
|
|
||||||
Sensitivity of Modeled Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Increase (decrease) in fair value due to increase in projected loss percentage from currently performing collateral
4
|
25%
|
|
$
|
(0.9
|
)
|
|
|
|
|
$
|
(8.7
|
)
|
|
|
|
||||
|
50%
|
|
(1.8
|
)
|
|
|
|
|
(17.6
|
)
|
|
|
|
||||||
|
100%
|
|
(3.8
|
)
|
|
|
|
|
(36.2
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to increase in projected loss percentage from currently performing collateral
4
and the immediate default of all deferring collateral with no recovery
|
25%
|
|
$
|
(6.8
|
)
|
|
|
|
|
$
|
(85.6
|
)
|
|
|
|
||||
|
50%
|
|
(7.8
|
)
|
|
|
|
|
(93.4
|
)
|
|
|
|
||||||
|
100%
|
|
(9.6
|
)
|
|
|
|
|
(109.2
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to
increase in discount rate
|
+100 bp
|
|
$
|
(12.2
|
)
|
|
|
|
|
$
|
(65.5
|
)
|
|
|
|
||||
|
+ 200 bp
|
|
(23.1
|
)
|
|
|
|
|
(123.7
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to increase in Forward LIBOR Curve
|
+ 100 bp
|
|
$
|
6.7
|
|
|
|
|
|
$
|
32.1
|
|
|
|
|
||||
Increase (decrease) in fair value due to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
increase in prepayment assumption
5
|
+1%
|
|
$
|
3.3
|
|
|
|
|
|
$
|
21.2
|
|
|
|
|
||||
increase in prepayment assumption
6
|
+2%
|
|
6.6
|
|
|
|
|
|
42.0
|
|
|
|
|
2
|
Weighted average percentage of collateral that is defaulted due to bank failures, or deferring payment as allowed under the terms of the security, including a 0% recovery rate on defaulted collateral and a credit-specific probability of default on deferring collateral which ranges from 11.19% to 100%.
|
6
|
Prepayment rate for small banks increased to 11% per year for the first 2.5 years and to 5% per year thereafter through maturity.
|
|
|
|
|
|
Total
|
|
Credit loss
|
|
Valuation losses
1
|
|||||||||||||||||||||||
(Dollar amounts in millions)
|
Number
of securities
|
|
% of
portfolio
|
|
Par
value
|
|
Amortized
cost
|
|
Estimated
fair value
|
|
Unrealized
loss
|
|
Current
year
|
|
Life-to-
date
|
|
Life-to-
date
|
|||||||||||||||
Original ratings of securities, no OTTI recognized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Original AAA
|
22
|
|
32.6
|
%
|
|
$
|
690
|
|
|
$
|
634
|
|
|
$
|
483
|
|
|
$
|
(151
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(72
|
)
|
Original A
|
15
|
|
15.8
|
%
|
|
336
|
|
|
336
|
|
|
198
|
|
|
(138
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Original BBB
|
5
|
|
2.2
|
%
|
|
47
|
|
|
46
|
|
|
22
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Non-OTTI
|
|
|
50.6
|
%
|
|
1,073
|
|
|
1,016
|
|
|
703
|
|
|
(314
|
)
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|||||||
Original ratings of securities, OTTI recognized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Original AAA
|
1
|
|
2.4
|
%
|
|
50
|
|
|
43
|
|
|
26
|
|
|
(17
|
)
|
|
—
|
|
|
(5
|
)
|
|
(2
|
)
|
|||||||
Original A
|
46
|
|
43.8
|
%
|
|
928
|
|
|
608
|
|
|
314
|
|
|
(294
|
)
|
|
(13
|
)
|
|
(325
|
)
|
|
—
|
|
|||||||
Original BBB
|
6
|
|
3.2
|
%
|
|
67
|
|
|
6
|
|
|
4
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(61
|
)
|
|
—
|
|
|||||||
Total OTTI
|
|
|
49.4
|
%
|
|
1,045
|
|
|
657
|
|
|
344
|
|
|
(313
|
)
|
|
(14
|
)
|
|
(391
|
)
|
|
(2
|
)
|
|||||||
Total noninvestment grade bank and insurance CDOs
|
|
100.0
|
%
|
|
$
|
2,118
|
|
|
$
|
1,673
|
|
|
$
|
1,047
|
|
|
$
|
(627
|
)
|
|
$
|
(14
|
)
|
|
$
|
(391
|
)
|
|
$
|
(74
|
)
|
|
|
Average amount of each security held
2
|
||||||||||||||
(In millions)
|
|
Par
value
|
|
Amortized
cost
|
|
Estimated
fair value
|
|
Unrealized
gain (loss)
|
||||||||
Original ratings of securities, no OTTI recognized:
|
|
|
|
|
|
|
|
|
||||||||
Original AAA
|
|
$
|
30
|
|
|
$
|
28
|
|
|
$
|
21
|
|
|
$
|
(7
|
)
|
Original A
|
|
15
|
|
|
15
|
|
|
9
|
|
|
(6
|
)
|
||||
Original BBB
|
|
9
|
|
|
9
|
|
|
4
|
|
|
(5
|
)
|
||||
Original ratings of securities, OTTI recognized:
|
|
|
|
|
|
|
|
|
||||||||
Original AAA
|
|
50
|
|
|
43
|
|
|
26
|
|
|
(17
|
)
|
||||
Original A
|
|
17
|
|
|
11
|
|
|
6
|
|
|
(5
|
)
|
||||
Original BBB
|
|
11
|
|
|
1
|
|
|
1
|
|
|
—
|
|
1
|
Valuation losses relate to securities purchased from Lockhart Funding LLC prior to its consolidation in June 2009.
|
2
|
The Company may have more than one holding of the same security.
|
|
Current
lowest
rating
|
|
# of issuers
in collateral
pool
|
|
# of issuers
currently
performing
1
|
|
% of original
collateral
defaulted
2
|
|
% of original
collateral
deferring
3
|
|
Subordination as a % of
performing collateral
4
|
|
Collateral- ization %
5
|
|
Present value of expected
cash flows discounted at
effective rate as a % of par
6
|
|
Lifetime
additional
projected loss
from performing
collateral
7
|
||||||
Original Ratings of Securities, Non-OTTI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Original AAA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Best
|
BB
|
|
22
|
|
20
|
|
2.6
|
%
|
|
4.2
|
%
|
|
63.9
|
%
|
|
672.9
|
%
|
|
100
|
%
|
|
—
|
|
Weighted average
|
|
|
|
|
|
17.3
|
|
|
9.3
|
|
|
40.5
|
|
|
244.5
|
|
|
100
|
|
|
10.8
|
%
|
|
Worst
|
CC
|
|
31
|
|
15
|
|
28.7
|
|
|
20.1
|
|
|
11.2
|
|
|
141.9
|
|
|
100
|
|
|
14.7
|
|
Original A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Best
|
B
|
|
31
|
|
31
|
|
—
|
|
|
—
|
|
|
28.3
|
|
|
309.3
|
|
|
100
|
|
|
11.3
|
|
Weighted average
|
|
|
|
|
|
1.5
|
|
|
5.0
|
|
|
20.8
|
|
|
157.2
|
|
|
100
|
|
|
12.3
|
|
|
Worst
|
CCC
|
|
6
|
|
5
|
|
4.0
|
|
|
9.3
|
|
|
12.5
|
|
|
134.7
|
|
|
100
|
|
|
14.6
|
|
Original BBB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Best
|
CCC
|
|
31
|
|
31
|
|
—
|
|
|
—
|
|
|
19.9
|
|
|
355.8
|
|
|
100
|
|
|
11.3
|
|
Weighted average
|
|
|
|
|
|
1.3
|
|
|
3.9
|
|
|
12.5
|
|
|
270.2
|
|
|
100
|
|
|
12.5
|
|
|
Worst
|
CC
|
|
21
|
|
18
|
|
4.0
|
|
|
9.3
|
|
|
5.8
|
|
|
186.8
|
|
|
100
|
|
|
13.7
|
|
Original Ratings of Securities, OTTI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Original AAA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Single
|
CCC
|
|
42
|
|
26
|
|
22.9
|
|
|
12.8
|
|
|
27.5
|
|
206.8
|
|
|
100
|
|
10.1
|
|
||
Original A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Best
|
CC
|
|
25
|
|
23
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
95.4
|
|
|
100
|
|
|
—
|
|
Weighted average
|
|
|
|
|
|
12.7
|
|
|
10.1
|
|
|
(19.5
|
)
|
|
59.8
|
|
|
71
|
|
|
12.0
|
|
|
Worst
|
C
|
|
3
|
|
—
|
|
33.3
|
|
|
25.1
|
|
|
(147.2
|
)
|
|
11.3
|
|
|
10
|
|
|
17.7
|
|
Original BBB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Best
|
C
|
|
39
|
|
33
|
|
6.3
|
|
|
4.7
|
|
|
(9.0
|
)
|
|
61.0
|
|
|
62
|
|
|
7.5
|
|
Weighted average
|
|
|
|
|
|
19.5
|
|
|
12.0
|
|
|
(45.3
|
)
|
|
(212.0
|
)
|
|
10
|
|
|
10.3
|
|
|
Worst
|
C
|
|
32
|
|
13
|
|
27.0
|
|
|
14.6
|
|
|
(86.7
|
)
|
|
(373.1
|
)
|
|
—
|
|
|
13.7
|
|
1
|
Excludes both defaulted issuers and issuers that have elected to defer payment of current interest.
|
(In millions)
|
June 30,
2013
|
|
December 31,
2012
|
||||||||
|
|
|
|
|
|
|
|
||||
Loans and leases
|
|
$
|
454
|
|
|
|
|
$
|
494
|
|
|
Held-to-maturity – municipal securities
|
|
564
|
|
|
|
|
525
|
|
|
||
Available-for-sale – municipal securities
|
|
66
|
|
|
|
|
75
|
|
|
||
Available-for-sale – auction rate securities
|
|
7
|
|
|
|
|
7
|
|
|
||
Trading account – municipal securities
|
|
19
|
|
|
|
|
21
|
|
|
||
Unused commitments to extend credit
|
|
7
|
|
|
|
|
33
|
|
|
||
Total direct exposure to municipalities
|
|
$
|
1,117
|
|
|
|
|
$
|
1,155
|
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
(Amounts in millions)
|
Amount
|
|
% of
total loans
|
|
Amount
|
|
% of
total loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
11,899
|
|
|
31.2
|
%
|
|
$
|
11,257
|
|
|
29.9
|
%
|
Leasing
|
388
|
|
|
1.0
|
%
|
|
423
|
|
|
1.1
|
%
|
||
Owner occupied
|
7,394
|
|
|
19.4
|
%
|
|
7,589
|
|
|
20.1
|
%
|
||
Municipal
|
454
|
|
|
1.2
|
%
|
|
494
|
|
|
1.3
|
%
|
||
Total commercial
|
20,135
|
|
|
|
|
19,763
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
2,191
|
|
|
5.7
|
%
|
|
1,939
|
|
|
5.1
|
%
|
||
Term
|
7,971
|
|
|
20.9
|
%
|
|
8,063
|
|
|
21.4
|
%
|
||
Total commercial real estate
|
10,162
|
|
|
|
|
10,002
|
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||
Home equity credit line
|
2,124
|
|
|
5.6
|
%
|
|
2,178
|
|
|
5.8
|
%
|
||
1-4 family residential
|
4,486
|
|
|
11.7
|
%
|
|
4,350
|
|
|
11.6
|
%
|
||
Construction and other consumer real estate
|
322
|
|
|
0.8
|
%
|
|
321
|
|
|
0.9
|
%
|
||
Bankcard and other revolving plans
|
315
|
|
|
0.8
|
%
|
|
307
|
|
|
0.8
|
%
|
||
Other
|
212
|
|
|
0.6
|
%
|
|
216
|
|
|
0.6
|
%
|
||
Total consumer
|
7,459
|
|
|
|
|
7,372
|
|
|
|
||||
FDIC-supported loans
1
|
432
|
|
|
1.1
|
%
|
|
528
|
|
|
1.4
|
%
|
||
Total net loans
|
$
|
38,188
|
|
|
100.0
|
%
|
|
$
|
37,665
|
|
|
100.0
|
%
|
(In millions)
|
June 30,
2013
|
|
December 31,
2012
|
||||||||
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
$
|
461
|
|
|
|
|
$
|
456
|
|
|
Federal Home Loan Bank stock
|
|
105
|
|
|
|
|
109
|
|
|
||
Federal Reserve stock
|
|
121
|
|
|
|
|
123
|
|
|
||
SBIC investments
|
|
56
|
|
|
|
|
46
|
|
|
||
Non-SBIC investment funds and other
|
|
105
|
|
|
|
|
107
|
|
|
||
Trust preferred securities
|
|
5
|
|
|
|
|
14
|
|
|
||
|
|
$
|
853
|
|
|
|
|
$
|
855
|
|
|
|
Inception through
June 30, 2013 |
||||||||||
(In millions)
|
Total actual net losses
|
|
Threshold
|
||||||||
|
|
|
|
|
|
|
|
||||
Alliance Bank
|
|
$
|
171
|
|
|
|
|
$
|
275
|
|
|
Vineyard Bank
|
|
202
|
|
|
|
|
465
|
|
|
||
Great Basin Bank
|
|
11
|
|
|
|
|
40
|
|
|
||
|
|
$
|
384
|
|
|
|
|
$
|
780
|
|
|
(Amounts in millions)
|
June 30,
2013
|
|
Percent
guaranteed
|
|
December 31,
2012
|
|
Percent
guaranteed
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
551
|
|
|
|
|
75
|
%
|
|
|
|
$
|
567
|
|
|
|
|
74
|
%
|
|
Commercial real estate
|
|
18
|
|
|
|
|
76
|
%
|
|
|
|
20
|
|
|
|
|
76
|
%
|
|
||
Consumer
|
|
3
|
|
|
|
|
100
|
%
|
|
|
|
3
|
|
|
|
|
100
|
%
|
|
||
Total loans excluding FDIC-supported loans
|
$
|
572
|
|
|
|
|
75
|
%
|
|
|
|
$
|
590
|
|
|
|
|
75
|
%
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
(Amounts in millions)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Real estate, rental and leasing
|
$
|
2,871
|
|
|
14.3
|
%
|
|
$
|
2,782
|
|
|
14.1
|
%
|
Manufacturing
|
2,198
|
|
|
10.9
|
%
|
|
1,999
|
|
|
10.1
|
%
|
||
Mining, quarrying and oil and gas extraction
|
2,062
|
|
|
10.2
|
%
|
|
1,992
|
|
|
10.1
|
%
|
||
Retail trade
|
1,670
|
|
|
8.3
|
%
|
|
1,661
|
|
|
8.4
|
%
|
||
Wholesale trade
|
1,540
|
|
|
7.6
|
%
|
|
1,521
|
|
|
7.7
|
%
|
||
Healthcare and social assistance
|
1,225
|
|
|
6.1
|
%
|
|
1,205
|
|
|
6.1
|
%
|
||
Transportation and warehousing
|
1,060
|
|
|
5.3
|
%
|
|
1,001
|
|
|
5.1
|
%
|
||
Finance and insurance
|
1,043
|
|
|
5.2
|
%
|
|
1,093
|
|
|
5.5
|
%
|
||
Professional, scientific and technical services
|
940
|
|
|
4.7
|
%
|
|
968
|
|
|
4.9
|
%
|
||
Construction
|
926
|
|
|
4.6
|
%
|
|
1,016
|
|
|
5.1
|
%
|
||
Accommodation and food services
|
784
|
|
|
3.9
|
%
|
|
786
|
|
|
4.0
|
%
|
||
Other
1
|
3,816
|
|
|
18.9
|
%
|
|
3,739
|
|
|
18.9
|
%
|
||
Total
|
$
|
20,135
|
|
|
100.0
|
%
|
|
$
|
19,763
|
|
|
100.0
|
%
|
(Amounts in millions)
|
|
|
Collateral Location
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Loan Type
|
As of
Date
|
|
Arizona
|
|
Northern
California
|
|
Southern
California
|
|
Nevada
|
|
Colorado
|
|
Texas
|
|
Utah/
Idaho
|
|
Washing-ton
|
|
Other
1
|
|
Total
|
|
% of
total
CRE
|
|||||||||||||||||||||
Commercial term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance outstanding
|
6/30/2013
|
|
$
|
1,188
|
|
|
$
|
637
|
|
|
$
|
2,124
|
|
|
$
|
563
|
|
|
$
|
494
|
|
|
$
|
1,006
|
|
|
$
|
935
|
|
|
$
|
205
|
|
|
$
|
819
|
|
|
$
|
7,971
|
|
|
78.5
|
%
|
% of loan type
|
|
|
14.9
|
%
|
|
8.0
|
%
|
|
26.6
|
%
|
|
7.1%
|
|
6.2
|
%
|
|
12.6
|
%
|
|
11.7
|
%
|
|
2.6
|
%
|
|
10.3
|
%
|
|
100.0
|
%
|
|
|
||||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
30-89 days
|
6/30/2013
|
|
0.2
|
%
|
|
—
|
|
|
0.2
|
%
|
|
0.3
|
%
|
|
0.5
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
—
|
|
|
0.9
|
%
|
|
0.2
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
—
|
|
|
0.1
|
%
|
|
0.2
|
%
|
|
1.3
|
%
|
|
1.6
|
%
|
|
0.3
|
%
|
|
|
|||||||||||
≥ 90 days
|
6/30/2013
|
|
0.1
|
%
|
|
0.8
|
%
|
|
0.3
|
%
|
|
0.4
|
%
|
|
—
|
|
|
0.5
|
%
|
|
0.1
|
%
|
|
—
|
|
|
1.6
|
%
|
|
0.4
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
0.3
|
%
|
|
1.3
|
%
|
|
0.5
|
%
|
|
0.8
|
%
|
|
0.7
|
%
|
|
0.5
|
%
|
|
0.1
|
%
|
|
—
|
|
|
2.1
|
%
|
|
0.7
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
6/30/2013
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
12/31/2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Nonaccrual loans
|
6/30/2013
|
|
5
|
|
|
6
|
|
|
10
|
|
|
3
|
|
|
3
|
|
|
9
|
|
|
5
|
|
|
1
|
|
|
29
|
|
|
71
|
|
|
|
|||||||||||
|
12/31/2012
|
|
10
|
|
|
9
|
|
|
19
|
|
|
14
|
|
|
11
|
|
|
8
|
|
|
4
|
|
|
3
|
|
|
47
|
|
|
125
|
|
|
|
|||||||||||
Residential construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Balance outstanding
|
6/30/2013
|
|
$
|
89
|
|
|
$
|
50
|
|
|
$
|
189
|
|
|
$
|
1
|
|
|
$
|
37
|
|
|
$
|
220
|
|
|
$
|
101
|
|
|
$
|
5
|
|
|
$
|
32
|
|
|
$
|
724
|
|
|
7.1
|
%
|
% of loan type
|
|
|
12.3
|
%
|
|
6.9
|
%
|
|
26.1
|
%
|
|
0.1
|
%
|
|
5.1
|
%
|
|
30.4
|
%
|
|
14.0
|
%
|
|
0.7
|
%
|
|
4.4
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
30-89 days
|
6/30/2013
|
|
0.2
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
%
|
|
1.9
|
%
|
|
—
|
|
|
—
|
|
|
0.7
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
0.6
|
%
|
|
1.0
|
%
|
|
0.4
|
%
|
|
10.7
|
%
|
|
4.9
|
%
|
|
7.9
|
%
|
|
0.2
|
%
|
|
—
|
|
|
—
|
|
|
3.1
|
%
|
|
|
|||||||||||
≥ 90 days
|
6/30/2013
|
|
0.8
|
%
|
|
—
|
|
|
0.1
|
%
|
|
—
|
|
|
0.2
|
%
|
|
5.3
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
0.7
|
%
|
|
—
|
|
|
0.2
|
%
|
|
—
|
|
|
0.5
|
%
|
|
6.7
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
6/30/2013
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
12/31/2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
|
|||||||||||
Nonaccrual loans
|
6/30/2013
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
|
|||||||||||
|
12/31/2012
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
|
|||||||||||
Commercial construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Balance outstanding
|
6/30/2013
|
|
$
|
98
|
|
|
$
|
60
|
|
|
$
|
263
|
|
|
$
|
92
|
|
|
$
|
109
|
|
|
$
|
398
|
|
|
$
|
352
|
|
|
$
|
29
|
|
|
$
|
66
|
|
|
$
|
1,467
|
|
|
14.4
|
%
|
% of loan type
|
|
|
6.7
|
%
|
|
4.1
|
%
|
|
17.9
|
%
|
|
6.3
|
%
|
|
7.4
|
%
|
|
27.1
|
%
|
|
24.0
|
%
|
|
2.0
|
%
|
|
4.5
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
30-89 days
|
6/30/2013
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
%
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
|
0.3
|
%
|
|
0.1
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
2.4
|
%
|
|
—
|
|
|
—
|
|
|
27.9
|
%
|
|
0.4
|
%
|
|
2.0
|
%
|
|
2.3
|
%
|
|
—
|
|
|
7.3
|
%
|
|
3.1
|
%
|
|
|
|||||||||||
≥ 90 days
|
6/30/2013
|
|
—
|
|
|
2.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
%
|
|
—
|
|
|
8.4
|
%
|
|
—
|
|
|
0.6
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
—
|
|
|
2.6
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
—
|
|
|
4.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
6/30/2013
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
12/31/2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Nonaccrual loans
|
6/30/2013
|
|
—
|
|
|
1
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
7
|
|
|
13
|
|
|
3
|
|
|
—
|
|
|
43
|
|
|
|
|||||||||||
|
12/31/2012
|
|
—
|
|
|
1
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
29
|
|
|
14
|
|
|
3
|
|
|
—
|
|
|
69
|
|
|
|
|||||||||||
Total construction and land development
|
6/30/2013
|
|
$
|
187
|
|
|
$
|
110
|
|
|
$
|
452
|
|
|
$
|
93
|
|
|
$
|
146
|
|
|
$
|
618
|
|
|
$
|
453
|
|
|
$
|
34
|
|
|
$
|
98
|
|
|
$
|
2,191
|
|
|
|
|
Total commercial real estate
|
6/30/2013
|
|
$
|
1,375
|
|
|
$
|
747
|
|
|
$
|
2,576
|
|
|
$
|
656
|
|
|
$
|
640
|
|
|
$
|
1,624
|
|
|
$
|
1,388
|
|
|
$
|
239
|
|
|
$
|
917
|
|
|
$
|
10,162
|
|
|
100.0
|
%
|
(In millions)
|
|
|
June 30, 2013
|
|
|
|
December 31, 2012
|
|
||||||||||||||||
Year of
origination
|
|
Outstanding
balance
|
|
Total
commitments
|
|
Outstanding
balance
|
|
Total
commitments
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2013
|
|
|
$
|
65
|
|
|
|
|
$
|
150
|
|
|
|
|
|
|
|
|
|
|
||||
2012
|
|
|
113
|
|
|
|
|
225
|
|
|
|
|
$
|
117
|
|
|
|
|
$
|
234
|
|
|
||
2011
|
|
|
84
|
|
|
|
|
164
|
|
|
|
|
97
|
|
|
|
|
182
|
|
|
||||
2010
|
|
|
57
|
|
|
|
|
109
|
|
|
|
|
68
|
|
|
|
|
122
|
|
|
||||
2009
|
|
|
58
|
|
|
|
|
117
|
|
|
|
|
65
|
|
|
|
|
125
|
|
|
||||
2008
|
|
|
143
|
|
|
|
|
227
|
|
|
|
|
158
|
|
|
|
|
250
|
|
|
||||
2007
|
|
|
173
|
|
|
|
|
275
|
|
|
|
|
189
|
|
|
|
|
295
|
|
|
||||
2006 and prior
|
|
|
367
|
|
|
|
|
826
|
|
|
|
|
419
|
|
|
|
|
910
|
|
|
||||
Total
|
|
|
$
|
1,060
|
|
|
|
|
$
|
2,093
|
|
|
|
|
$
|
1,113
|
|
|
|
|
$
|
2,118
|
|
|
|
|
Percentage of HECL portfolio
|
||||||||
CLTV
|
|
June 30, 2013
|
|
December 31,
2012
|
||||||
>100%
|
|
|
11
|
%
|
|
|
|
14
|
%
|
|
90-100%
|
|
|
8
|
%
|
|
|
|
9
|
%
|
|
80-89%
|
|
|
12
|
%
|
|
|
|
13
|
%
|
|
< 80%
|
|
|
69
|
%
|
|
|
|
64
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
(Amounts in millions)
|
June 30,
2013
|
|
December 31,
2012
|
||||
|
|
|
|
||||
Nonaccrual loans
|
$
|
516
|
|
|
$
|
631
|
|
Other real estate owned
|
70
|
|
|
90
|
|
||
Nonperforming lending-related assets, excluding FDIC-supported assets
|
586
|
|
|
721
|
|
||
FDIC-supported nonaccrual loans
|
5
|
|
|
17
|
|
||
FDIC-supported other real estate owned
|
11
|
|
|
8
|
|
||
FDIC-supported nonperforming lending-related assets
|
16
|
|
|
25
|
|
||
Total nonperforming lending-related assets
|
$
|
602
|
|
|
$
|
746
|
|
Ratio of nonperforming lending-related assets to net loans and leases
1
and other real estate owned
|
1.57
|
%
|
|
1.96
|
%
|
||
Accruing loans past due 90 days or more, excluding FDIC-supported loans
|
$
|
11
|
|
|
$
|
10
|
|
FDIC-supported loans past due 90 days or more
|
33
|
|
|
52
|
|
||
Ratio of accruing loans past due 90 days or more to net loans and leases
1
|
0.11
|
%
|
|
0.16
|
%
|
||
Nonaccrual loans and accruing loans past due 90 days or more
|
$
|
565
|
|
|
$
|
710
|
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to
net loans and leases
1
|
1.47
|
%
|
|
1.87
|
%
|
||
Accruing loans past due 30 – 89 days, excluding FDIC-supported loans
|
$
|
103
|
|
|
$
|
185
|
|
FDIC-supported loans past due 30 – 89 days
|
7
|
|
|
12
|
|
||
Classified loans, excluding FDIC-supported loans
|
1,639
|
|
|
1,767
|
|
(In millions)
|
June 30,
2013
|
|
December 31,
2012
|
||||||
|
|
|
|
|
|
||||
Restructured loans – accruing
|
$
|
385
|
|
|
|
$
|
407
|
|
|
Restructured loans – nonaccruing
|
163
|
|
|
|
216
|
|
|
||
Total
|
$
|
548
|
|
|
|
$
|
623
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||
(In millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
610
|
|
|
$
|
678
|
|
|
$
|
623
|
|
|
$
|
744
|
|
New identified TDRs and principal increases
|
36
|
|
|
62
|
|
|
94
|
|
|
150
|
|
||||
Payments and payoffs
|
(82
|
)
|
|
(77
|
)
|
|
(134
|
)
|
|
(144
|
)
|
||||
Charge-offs
|
(4
|
)
|
|
(4
|
)
|
|
(7
|
)
|
|
(13
|
)
|
||||
No longer reported as TDRs
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(63
|
)
|
||||
Sales and other
|
(12
|
)
|
|
(37
|
)
|
|
(25
|
)
|
|
(53
|
)
|
||||
Balance at end of period
|
$
|
548
|
|
|
$
|
621
|
|
|
$
|
548
|
|
|
$
|
621
|
|
(Amounts in millions)
|
Six Months
Ended
June 30,
2013
|
|
Twelve Months
Ended December 31, 2012
|
|
Six Months
Ended
June 30,
2012
|
||||||
|
|
|
|
|
|
||||||
Loans and leases outstanding (net of unearned income)
|
$
|
38,188
|
|
|
$
|
37,665
|
|
|
$
|
36,962
|
|
Average loans and leases outstanding (net of unearned income)
|
$
|
37,786
|
|
|
$
|
37,037
|
|
|
$
|
36,849
|
|
Allowance for loan losses:
|
|
|
|
|
|
||||||
Balance at beginning of period
|
$
|
896
|
|
|
$
|
1,052
|
|
|
$
|
1,052
|
|
Provision charged against earnings
|
(51
|
)
|
|
14
|
|
|
27
|
|
|||
Adjustment for FDIC-supported loans
|
(8
|
)
|
|
(15
|
)
|
|
(7
|
)
|
|||
Charge-offs:
|
|
|
|
|
|
||||||
Commercial
|
(37
|
)
|
|
(121
|
)
|
|
(68
|
)
|
|||
Commercial real estate
|
(14
|
)
|
|
(85
|
)
|
|
(52
|
)
|
|||
Consumer
|
(19
|
)
|
|
(61
|
)
|
|
(34
|
)
|
|||
Total
|
(70
|
)
|
|
(267
|
)
|
|
(154
|
)
|
|||
Recoveries:
|
|
|
|
|
|
||||||
Commercial
|
22
|
|
|
56
|
|
|
24
|
|
|||
Commercial real estate
|
18
|
|
|
42
|
|
|
24
|
|
|||
Consumer
|
7
|
|
|
14
|
|
|
7
|
|
|||
Total
|
47
|
|
|
112
|
|
|
55
|
|
|||
Net loan and lease charge-offs
|
(23
|
)
|
|
(155
|
)
|
|
(99
|
)
|
|||
Balance at end of period
|
$
|
814
|
|
|
$
|
896
|
|
|
$
|
973
|
|
|
|
|
|
|
|
||||||
Ratio of annualized net charge-offs to average loans and leases
|
0.12
|
%
|
|
0.42
|
%
|
|
0.54
|
%
|
|||
Ratio of allowance for loan losses to net loans and leases, at period end
|
2.13
|
%
|
|
2.38
|
%
|
|
2.63
|
%
|
|||
Ratio of allowance for loan losses to nonperforming loans, at period end
|
156.23
|
%
|
|
138.25
|
%
|
|
122.68
|
%
|
|||
Ratio of allowance for loan losses to nonaccrual loans and accruing loans past due 90 days or more, at period end
|
144.04
|
%
|
|
126.22
|
%
|
|
108.96
|
%
|
|
|
As of June 30, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(2.9
|
)%
|
|
7.2
|
%
|
|
15.4
|
%
|
|
23.9
|
%
|
Slow
|
|
(3.1
|
)%
|
|
8.6
|
%
|
|
18.1
|
%
|
|
28.0
|
%
|
|
|
As of March 31, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(2.4
|
)%
|
|
6.7
|
%
|
|
14.5
|
%
|
|
22.6
|
%
|
Slow
|
|
(2.6
|
)%
|
|
7.9
|
%
|
|
17.0
|
%
|
|
26.4
|
%
|
|
|
As of December 31, 2012
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(1.8
|
)%
|
|
3.9
|
%
|
|
9.8
|
%
|
|
16.7
|
%
|
Slow
|
|
(2.0
|
)%
|
|
5.0
|
%
|
|
12.1
|
%
|
|
20.2
|
%
|
|
|
As of June 30, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(1.3
|
)%
|
|
2.5
|
%
|
|
5.3
|
%
|
|
8.2
|
%
|
Slow
|
|
(4.5
|
)%
|
|
5.5
|
%
|
|
11.1
|
%
|
|
16.4
|
%
|
|
|
As of March 31, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(1.1
|
)%
|
|
2.6
|
%
|
|
5.6
|
%
|
|
8.7
|
%
|
Slow
|
|
(4.5
|
)%
|
|
5.9
|
%
|
|
12.0
|
%
|
|
17.9
|
%
|
|
|
As of December 31, 2012
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
0.7
|
%
|
|
1.7
|
%
|
|
3.9
|
%
|
|
6.3
|
%
|
Slow
|
|
(2.8
|
)%
|
|
4.9
|
%
|
|
10.6
|
%
|
|
16.0
|
%
|
PARENT ONLY CONDENSED BALANCE SHEETS
|
|||||||||||
(In thousands)
|
June 30,
2013
|
|
December 31, 2012
|
|
June 30,
2012
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
1,217,835
|
|
|
$
|
2,001
|
|
|
$
|
2,510
|
|
Interest-bearing deposits
|
69
|
|
|
75,808
|
|
|
923,560
|
|
|||
Security resell agreements
|
—
|
|
|
575,000
|
|
|
—
|
|
|||
Investment securities:
|
|
|
|
|
|
||||||
Held-to-maturity, at adjusted cost (approximate fair value of $27,830,
$22,112 and $17,704)
|
19,272
|
|
|
22,679
|
|
|
14,707
|
|
|||
Available-for-sale, at fair value
|
551,056
|
|
|
461,665
|
|
|
395,226
|
|
|||
Loans, net of unearned fees of $0, $0 and $0 and allowance for loan losses of $21, $23 and $0
|
1,279
|
|
|
1,277
|
|
|
—
|
|
|||
Other noninterest-bearing investments
|
43,076
|
|
|
50,799
|
|
|
50,388
|
|
|||
Investments in subsidiaries:
|
|
|
|
|
|
||||||
Commercial banks and bank holding company
|
6,709,707
|
|
|
6,668,881
|
|
|
6,897,138
|
|
|||
Other operating companies
|
35,245
|
|
|
36,516
|
|
|
43,732
|
|
|||
Nonoperating – ZMFU II, Inc.
1
|
43,776
|
|
|
43,012
|
|
|
92,624
|
|
|||
Receivables from subsidiaries:
|
|
|
|
|
|
||||||
Other operating companies
|
5,000
|
|
|
—
|
|
|
20,000
|
|
|||
Other assets
|
289,243
|
|
|
311,093
|
|
|
224,398
|
|
|||
|
$
|
8,915,558
|
|
|
$
|
8,248,731
|
|
|
$
|
8,664,283
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Other liabilities
|
$
|
133,311
|
|
|
$
|
106,159
|
|
|
$
|
96,376
|
|
Commercial paper:
|
|
|
|
|
|
||||||
Due to affiliates
|
—
|
|
|
—
|
|
|
45,995
|
|
|||
Due to others
|
—
|
|
|
—
|
|
|
2,217
|
|
|||
Other short-term borrowings:
|
|
|
|
|
|
||||||
Due to affiliates
|
—
|
|
|
—
|
|
|
5
|
|
|||
Due to others
|
—
|
|
|
4,951
|
|
|
4,946
|
|
|||
Subordinated debt to affiliated trusts
|
15,464
|
|
|
309,278
|
|
|
309,278
|
|
|||
Long-term debt:
|
|
|
|
|
|
||||||
Due to affiliates
|
34
|
|
|
—
|
|
|
56
|
|
|||
Due to others
|
1,906,417
|
|
|
1,776,274
|
|
|
1,713,439
|
|
|||
Total liabilities
|
2,055,226
|
|
|
2,196,662
|
|
|
2,172,312
|
|
|||
Shareholders’ equity:
|
|
|
|
|
|
||||||
Preferred stock
|
1,728,659
|
|
|
1,128,302
|
|
|
1,800,473
|
|
|||
Common stock
|
4,167,828
|
|
|
4,166,109
|
|
|
4,157,525
|
|
|||
Retained earnings
|
1,338,401
|
|
|
1,203,815
|
|
|
1,110,120
|
|
|||
Accumulated other comprehensive loss
|
(374,556
|
)
|
|
(446,157
|
)
|
|
(576,147
|
)
|
|||
Total shareholders’ equity
|
6,860,332
|
|
|
6,052,069
|
|
|
6,491,971
|
|
|||
|
$
|
8,915,558
|
|
|
$
|
8,248,731
|
|
|
$
|
8,664,283
|
|
|
Three Months Ended
|
|
|||||||||||||||||||||||||||
(In millions)
|
June 30,
2013 |
|
March 31,
2013 |
|
December 31,
2012 |
|
September 30,
2012 |
|
June 30,
2012 |
||||||||||||||||||||
Preferred equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Convertible subordinated debt converted to
preferred stock
|
|
$
|
0.2
|
|
|
|
|
$
|
1.0
|
|
|
|
|
$
|
4.2
|
|
|
|
|
$
|
5.4
|
|
|
|
|
$
|
50.2
|
|
|
Beneficial conversion feature reclassified from common to preferred stock
|
|
—
|
|
|
|
|
0.2
|
|
|
|
|
0.7
|
|
|
|
|
0.9
|
|
|
|
|
8.5
|
|
|
|||||
Change in preferred equity
|
|
0.2
|
|
|
|
|
1.2
|
|
|
|
|
4.9
|
|
|
|
|
6.3
|
|
|
|
|
58.7
|
|
|
|||||
Common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accelerated convertible subordinated debt discount amortization, net of tax
|
|
(0.1
|
)
|
|
|
|
(0.3
|
)
|
|
|
|
(0.9
|
)
|
|
|
|
(1.6
|
)
|
|
|
|
(13.2
|
)
|
|
|||||
Beneficial conversion feature reclassified from common to preferred stock
|
|
—
|
|
|
|
|
(0.2
|
)
|
|
|
|
(0.7
|
)
|
|
|
|
(0.9
|
)
|
|
|
|
(8.5
|
)
|
|
|||||
Change in common equity
|
|
(0.1
|
)
|
|
|
|
(0.5
|
)
|
|
|
|
(1.6
|
)
|
|
|
|
(2.5
|
)
|
|
|
|
(21.7
|
)
|
|
|||||
Net impact on Tier 1 capital
|
|
$
|
0.1
|
|
|
|
|
$
|
0.7
|
|
|
|
|
$
|
3.3
|
|
|
|
|
$
|
3.8
|
|
|
|
|
$
|
37.0
|
|
|
Convertible subordinated debt outstanding
|
|
$
|
456.6
|
|
|
|
|
$
|
456.8
|
|
|
|
|
$
|
457.8
|
|
|
|
|
$
|
462.0
|
|
|
|
|
$
|
467.4
|
|
|
|
June 30,
2013 |
|
December 31,
2012 |
|
June 30,
2012 |
|||
|
|
|
|
|
|
|||
Tangible common equity ratio
|
7.57
|
%
|
|
7.09
|
%
|
|
6.91
|
%
|
Tangible equity ratio
|
10.78
|
%
|
|
9.15
|
%
|
|
10.35
|
%
|
Average equity to average assets (three months ended)
|
12.11
|
%
|
|
11.03
|
%
|
|
12.37
|
%
|
Risk-based capital ratios:
|
|
|
|
|
|
|||
Common equity Tier 1
|
10.03
|
%
|
|
9.80
|
%
|
|
9.78
|
%
|
Tier 1 leverage
|
11.75
|
%
|
|
10.96
|
%
|
|
12.31
|
%
|
Tier 1 risk-based
|
14.30
|
%
|
|
13.38
|
%
|
|
15.03
|
%
|
Total risk-based
|
15.94
|
%
|
|
15.05
|
%
|
|
16.89
|
%
|
|
|
|
|
|
|
|||
Return on average common equity (three months ended)
|
4.35
|
%
|
|
2.91
|
%
|
|
4.71
|
%
|
Tangible return on average tangible common equity
(three months ended)
|
5.73
|
%
|
|
4.07
|
%
|
|
6.41
|
%
|
•
|
4.5% CET1 to risk-weighted assets.
|
•
|
6.0% Tier 1 capital (i.e., CET1 plus Additional Tier 1) to risk-weighted assets.
|
•
|
8.0% Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets.
|
•
|
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).
|
(Amounts in millions)
|
June 30,
2013 |
|
December 31,
2012 |
|
June 30,
2012 |
||||||
|
|
|
|
|
|
||||||
Controlling interest shareholders’ equity (GAAP)
|
$
|
6,860
|
|
|
$
|
6,052
|
|
|
$
|
6,492
|
|
Accumulated other comprehensive loss
|
375
|
|
|
446
|
|
|
576
|
|
|||
Nonqualifying goodwill and intangibles
|
(1,057
|
)
|
|
(1,065
|
)
|
|
(1,074
|
)
|
|||
Other regulatory adjustments
|
(2
|
)
|
|
3
|
|
|
2
|
|
|||
Qualifying trust preferred securities
|
163
|
|
|
448
|
|
|
448
|
|
|||
Tier 1 capital (regulatory)
|
6,339
|
|
|
5,884
|
|
|
6,444
|
|
|||
Qualifying trust preferred securities
|
(163
|
)
|
|
(448
|
)
|
|
(448
|
)
|
|||
Preferred stock
|
(1,729
|
)
|
|
(1,128
|
)
|
|
(1,800
|
)
|
|||
Common equity Tier 1 capital (non-GAAP)
|
$
|
4,447
|
|
|
$
|
4,308
|
|
|
$
|
4,196
|
|
|
|
|
|
|
|
||||||
Risk-weighted assets (regulatory)
|
$
|
44,327
|
|
|
$
|
43,970
|
|
|
$
|
42,891
|
|
Common equity Tier 1 capital to risk-weighted assets (non-GAAP)
|
10.03
|
%
|
|
9.80
|
%
|
|
9.78
|
%
|
|
Three Months Ended
|
||||||||||
(Amounts in thousands)
|
June 30,
2013 |
|
December 31,
2012 |
|
June 30,
2012 |
||||||
|
|
|
|
|
|
||||||
Net earnings applicable to common shareholders (GAAP)
|
$
|
55,385
|
|
|
$
|
35,605
|
|
|
$
|
55,215
|
|
Adjustments, net of tax:
|
|
|
|
|
|
||||||
Impairment loss on goodwill
|
—
|
|
|
583
|
|
|
—
|
|
|||
Amortization of core deposit and other intangibles
|
2,391
|
|
|
2,677
|
|
|
2,704
|
|
|||
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a)
|
$
|
57,776
|
|
|
$
|
38,865
|
|
|
$
|
57,919
|
|
|
|
|
|
|
|
||||||
Average common equity (GAAP)
|
$
|
5,102,082
|
|
|
$
|
4,862,972
|
|
|
$
|
4,713,318
|
|
Average goodwill
|
(1,014,129
|
)
|
|
(1,014,986
|
)
|
|
(1,015,129
|
)
|
|||
Average core deposit and other intangibles
|
(45,262
|
)
|
|
(53,083
|
)
|
|
(61,511
|
)
|
|||
Average tangible common equity (non-GAAP) (b)
|
$
|
4,042,691
|
|
|
$
|
3,794,903
|
|
|
$
|
3,636,678
|
|
|
|
|
|
|
|
||||||
Number of days in quarter (c)
|
91
|
|
|
92
|
|
|
91
|
|
|||
Number of days in year (d)
|
365
|
|
|
366
|
|
|
366
|
|
|||
|
|
|
|
|
|
||||||
Tangible return on average tangible common equity
(non-GAAP) (a/b/c*d)
|
5.73
|
%
|
|
4.07
|
%
|
|
6.41
|
%
|
(Amounts in millions)
|
June 30,
2013 |
|
December 31,
2012 |
|
June 30,
2012 |
||||||
|
|
|
|
|
|
||||||
Total shareholders’ equity (GAAP)
|
$
|
6,860
|
|
|
$
|
6,049
|
|
|
$
|
6,489
|
|
Goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,015
|
)
|
|||
Core deposit and other intangibles
|
(43
|
)
|
|
(51
|
)
|
|
(59
|
)
|
|||
Tangible equity (non-GAAP) (a)
|
5,803
|
|
|
4,984
|
|
|
5,415
|
|
|||
Preferred stock
|
(1,729
|
)
|
|
(1,128
|
)
|
|
(1,800
|
)
|
|||
Noncontrolling interests
|
—
|
|
|
3
|
|
|
3
|
|
|||
Tangible common equity (non-GAAP) (b)
|
$
|
4,074
|
|
|
$
|
3,859
|
|
|
$
|
3,618
|
|
|
|
|
|
|
|
||||||
Total assets (GAAP)
|
$
|
54,905
|
|
|
$
|
55,512
|
|
|
$
|
53,407
|
|
Goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,015
|
)
|
|||
Core deposit and other intangibles
|
(43
|
)
|
|
(51
|
)
|
|
(59
|
)
|
|||
Tangible assets (non-GAAP) (c)
|
$
|
53,848
|
|
|
$
|
54,447
|
|
|
$
|
52,333
|
|
|
|
|
|
|
|
||||||
Tangible equity ratio (a/c)
|
10.78
|
%
|
|
9.15
|
%
|
|
10.35
|
%
|
|||
Tangible common equity ratio (b/c)
|
7.57
|
%
|
|
7.09
|
%
|
|
6.91
|
%
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total number
of shares
repurchased
1
|
|
Average
price paid
per share
|
|
Total number of shares
purchased as part of
publicly announced
plans or programs
|
|
Approximate dollar
value of shares that
may yet be purchased
under the plan
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
April
|
|
|
4,301
|
|
|
|
$
|
24.64
|
|
|
|
—
|
|
|
|
|
$
|
—
|
|
|
May
|
|
|
115,211
|
|
|
|
28.09
|
|
|
|
—
|
|
|
|
|
—
|
|
|
||
June
|
|
|
39,621
|
|
|
|
27.63
|
|
|
|
—
|
|
|
|
|
—
|
|
|
||
Second quarter
|
|
|
159,133
|
|
|
|
27.88
|
|
|
|
—
|
|
|
|
|
|
|
1
|
Represents common shares acquired from employees in connection with the Company’s stock compensation plan. Shares were acquired from employees to pay for their payroll taxes upon the vesting of restricted stock and restricted stock units under the “withholding shares” provision of an employee share-based compensation plan.
|
ITEM 6.
|
EXHIBITS
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
3.1
|
|
Restated Articles of Incorporation of Zions Bancorporation dated November 8, 1993, incorporated by reference to Exhibit 3.1 of Form S-4 filed on November 22, 1993.
|
*
|
|
|
|
|
3.2
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation dated April 30, 1997, incorporated by reference to Exhibit 3.2 of Form 10-Q for the quarter ended March 31, 2008.
|
*
|
|
|
|
|
3.3
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation dated April 24, 1998, incorporated by reference to Exhibit 3.3 of Form 10-Q for the quarter ended March 31, 2009.
|
*
|
|
|
|
|
3.4
|
|
Articles of Amendment to Restated Articles of Incorporation of Zions Bancorporation dated April 25, 2001, incorporated by reference to Exhibit 3.6 of Form S-4 filed July 13, 2001.
|
*
|
|
|
|
|
3.5
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation, dated December 5, 2006, incorporated by reference to Exhibit 3.5 of Form 10-K for the year ended December 31, 2011.
|
*
|
|
|
|
|
3.6
|
|
Articles of Merger of The Stockmen’s Bancorp, Inc. with and into Zions Bancorporation, effective January 17, 2007, incorporated by reference to Exhibit 3.6 of Form 10-Q for the quarter ended March 31, 2012.
|
*
|
|
|
|
|
3.7
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation, dated July 7, 2008, incorporated by reference to Exhibit 3.1 of Form 8-K filed July 8, 2008.
|
*
|
|
|
|
|
3.8
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation, dated November 12, 2008, incorporated by reference to Exhibit 3.1 of Form 8-K filed November 17, 2008.
|
*
|
|
|
|
|
3.9
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation, dated June 30, 2009, incorporated by reference to Exhibit 3.1 of Form 8-K filed July 2, 2009.
|
*
|
|
|
|
|
3.10
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation dated June 30, 2009, incorporated by reference to Exhibit 3.10 of Form 10-Q for the quarter ended June 30, 2009.
|
*
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
3.11
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation dated June 1, 2010, incorporated by reference to Exhibit 3.1 of Form 8-K filed June 3, 2010.
|
*
|
|
|
|
|
3.12
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation dated June 14, 2010, incorporated by reference to Exhibit 3.1 of Form 8-K filed June 15, 2010.
|
*
|
|
|
|
|
3.13
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation with respect to the Series F Fixed-Rate Non-Cumulative Perpetual Preferred Stock, dated May 4, 2012, incorporated by reference to Exhibit 3.1 of Form 8-K filed May 5, 2012.
|
*
|
|
|
|
|
3.14
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation with respect to the Series G Fixed/Floating-Rate Non-Cumulative Perpetual Preferred Stock, dated February 5, 2013, incorporated by reference to Exhibit 3.1 of Form 8-K filed February 7, 2013.
|
*
|
|
|
|
|
3.15
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation with respect to the Series H Fixed-Rate Non-Cumulative Perpetual Preferred Stock, dated April 29, 2013, incorporated by reference to Exhibit 3.1 of Form 8-K filed May 3, 2013.
|
*
|
|
|
|
|
3.16
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation with respect to the Series I Fixed/Floating-Rate Non-Cumulative Perpetual Preferred Stock, dated May 17, 2013, incorporated by reference to Exhibit 3.1 of Form 8-K filed May 21, 2013.
|
*
|
|
|
|
|
3.17
|
|
Restated Bylaws of Zions Bancorporation dated November 8, 2011, incorporated by reference to Exhibit 3.13 of Form 10-Q for the quarter ended September 30, 2011.
|
*
|
|
|
|
|
31.1
|
|
Certification by Chief Executive Officer required by Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (filed herewith).
|
|
|
|
|
|
31.2
|
|
Certification by Chief Financial Officer required by Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (filed herewith).
|
|
|
|
|
|
10.1
|
|
First amendment to the Zions Bancorporation Pension Plan, dated June 28, 2013 (filed herewith).
|
|
|
|
|
|
32
|
|
Certification by Chief Executive Officer and Chief Financial Officer required by Sections 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m) and 18 U.S.C. Section 1350 (furnished herewith).
|
|
|
|
|
|
101
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012, (ii) the Consolidated Statements of Income for the three months ended June 30, 2013 and June 30, 2012 and the six months ended June 30, 2013 and June 30, 2012, (iii) the Consolidated Statements of Comprehensive Income for the three months ended June 30, 2013 and June 30, 2012 and the six months ended June 30, 2013 and June 30, 2012, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the three months ended June 30, 2013 and June 30, 2012 and the six months ended June 30, 2013 and June 30, 2012, (v) the Consolidated Statements of Cash Flows for the three months ended June 30, 2013 and June 30, 2012 and the six months ended June 30, 2013 and June 30, 2012, and (vi) the Notes to Consolidated Financial Statements (filed herewith).
|
|
|
ZIONS BANCORPORATION
|
|
/s/ Harris H. Simmons
|
Harris H. Simmons, Chairman, President
and Chief Executive Officer
|
|
/s/ Doyle L. Arnold
|
Doyle L. Arnold, Vice Chairman and
Chief Financial Officer
|
1.
|
Section 3.2 is amended to add the following new subsection (h) at the end thereof:
|
h)
|
From and after June 30, 2013, no Cash Balance Account of any Grandfather or Great-Grandfather Participant shall accrue any further contribution or Earnings Credit under this Section 3.2. This subsection shall superede any provision of Article IV that might otherwise be deemed to provide continuing accrual of benefits to any Grandfather or Great-Grandfather Participant under Section 3.2.
|
1.
|
Section 2.1 of Appendix III is amended to add the following at the end thereof:
|
2.
|
This First Amendment to the Plan shall be effective as June 30, 2013, and for Plan Years commencing after that date, unless another effective date is specified therein.
|
3.
|
In all other respects the Plan is ratified and approved.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Zions Bancorporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Harris H. Simmons
|
|
Harris H. Simmons, Chairman, President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Zions Bancorporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Doyle L. Arnold
|
|
Doyle L. Arnold, Vice Chairman and
Chief Financial Officer
|
|
/s/ Harris H. Simmons
|
|
|
Name:
|
Harris H. Simmons
|
|
Title:
|
Chairman, President and Chief Executive Officer
|
|
|
|
|
/s/ Doyle L. Arnold
|
|
|
Name:
|
Doyle L. Arnold
|
|
Title:
|
Vice Chairman and Chief Financial Officer
|