ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
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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
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Accelerated filer
|
¨
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|
|
|
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Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
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Common Stock, without par value, outstanding at October 31, 2013
|
184,615,234 shares
|
|
|
|
|
|
Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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ITEM 1.
|
FINANCIAL STATEMENTS
(Unaudited)
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|||||||
(In thousands, except share amounts)
|
September 30,
2013 |
|
December 31,
2012 |
||||
(Unaudited)
|
|
|
|||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
1,365,082
|
|
|
$
|
1,841,907
|
|
Money market investments:
|
|
|
|
||||
Interest-bearing deposits
|
8,180,639
|
|
|
5,978,978
|
|
||
Federal funds sold and security resell agreements
|
209,070
|
|
|
2,775,354
|
|
||
Investment securities:
|
|
|
|
||||
Held-to-maturity, at adjusted cost (approximate fair value $727,908 and $674,741)
|
777,849
|
|
|
756,909
|
|
||
Available-for-sale, at fair value
|
3,333,889
|
|
|
3,091,310
|
|
||
Trading account, at fair value
|
38,278
|
|
|
28,290
|
|
||
|
4,150,016
|
|
|
3,876,509
|
|
||
|
|
|
|
||||
Loans held for sale
|
114,810
|
|
|
251,651
|
|
||
Loans, net of unearned income and fees:
|
|
|
|
||||
Loans and leases
|
37,897,869
|
|
|
37,137,006
|
|
||
FDIC-supported loans
|
374,861
|
|
|
528,241
|
|
||
|
38,272,730
|
|
|
37,665,247
|
|
||
Less allowance for loan losses
|
797,523
|
|
|
896,087
|
|
||
Loans, net of allowance
|
37,475,207
|
|
|
36,769,160
|
|
||
|
|
|
|
||||
Other noninterest-bearing investments
|
851,349
|
|
|
855,462
|
|
||
Premises and equipment, net
|
720,365
|
|
|
708,882
|
|
||
Goodwill
|
1,014,129
|
|
|
1,014,129
|
|
||
Core deposit and other intangibles
|
39,667
|
|
|
50,818
|
|
||
Other real estate owned
|
66,381
|
|
|
98,151
|
|
||
Other assets
|
1,001,597
|
|
|
1,290,917
|
|
||
|
$
|
55,188,312
|
|
|
$
|
55,511,918
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
18,566,137
|
|
|
$
|
18,469,458
|
|
Interest-bearing:
|
|
|
|
||||
Savings and money market
|
22,806,132
|
|
|
22,896,624
|
|
||
Time
|
2,689,688
|
|
|
2,962,931
|
|
||
Foreign
|
1,607,409
|
|
|
1,804,060
|
|
||
|
45,669,366
|
|
|
46,133,073
|
|
||
|
|
|
|
||||
Securities sold, not yet purchased
|
21,183
|
|
|
26,735
|
|
||
Federal funds purchased and security repurchase agreements
|
252,591
|
|
|
320,478
|
|
||
Other short-term borrowings
|
—
|
|
|
5,409
|
|
||
Long-term debt
|
2,304,301
|
|
|
2,337,113
|
|
||
Reserve for unfunded lending commitments
|
84,147
|
|
|
106,809
|
|
||
Other liabilities
|
523,915
|
|
|
533,660
|
|
||
Total liabilities
|
48,855,503
|
|
|
49,463,277
|
|
||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, without par value, authorized 4,400,000 shares
|
1,003,970
|
|
|
1,128,302
|
|
||
Common stock, without par value; authorized 350,000,000 shares; issued
and outstanding 184,600,005 and 184,199,198 shares
|
4,172,887
|
|
|
4,166,109
|
|
||
Retained earnings
|
1,540,455
|
|
|
1,203,815
|
|
||
Accumulated other comprehensive income (loss)
|
(384,503
|
)
|
|
(446,157
|
)
|
||
Controlling interest shareholders’ equity
|
6,332,809
|
|
|
6,052,069
|
|
||
Noncontrolling interests
|
—
|
|
|
(3,428
|
)
|
||
Total shareholders’ equity
|
6,332,809
|
|
|
6,048,641
|
|
||
|
$
|
55,188,312
|
|
|
$
|
55,511,918
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|||||||||||||||
(In thousands, except per share amounts)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
442,366
|
|
|
$
|
473,162
|
|
|
$
|
1,356,107
|
|
|
$
|
1,427,882
|
|
Interest on money market investments
|
6,175
|
|
|
5,349
|
|
|
17,378
|
|
|
15,076
|
|
||||
Interest on securities:
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity
|
7,739
|
|
|
8,337
|
|
|
23,559
|
|
|
26,621
|
|
||||
Available-for-sale
|
16,917
|
|
|
22,042
|
|
|
53,657
|
|
|
70,290
|
|
||||
Trading account
|
210
|
|
|
110
|
|
|
687
|
|
|
596
|
|
||||
Total interest income
|
473,407
|
|
|
509,000
|
|
|
1,451,388
|
|
|
1,540,465
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
14,506
|
|
|
19,049
|
|
|
45,291
|
|
|
63,285
|
|
||||
Interest on short-term borrowings
|
71
|
|
|
193
|
|
|
241
|
|
|
1,228
|
|
||||
Interest on long-term debt
|
43,309
|
|
|
51,597
|
|
|
141,563
|
|
|
173,969
|
|
||||
Total interest expense
|
57,886
|
|
|
70,839
|
|
|
187,095
|
|
|
238,482
|
|
||||
Net interest income
|
415,521
|
|
|
438,161
|
|
|
1,264,293
|
|
|
1,301,983
|
|
||||
Provision for loan losses
|
(5,573
|
)
|
|
(1,889
|
)
|
|
(56,598
|
)
|
|
24,628
|
|
||||
Net interest income after provision for loan losses
|
421,094
|
|
|
440,050
|
|
|
1,320,891
|
|
|
1,277,355
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposit accounts
|
44,701
|
|
|
44,951
|
|
|
132,610
|
|
|
131,909
|
|
||||
Other service charges, commissions and fees
|
45,977
|
|
|
44,679
|
|
|
134,596
|
|
|
127,923
|
|
||||
Trust and wealth management income
|
7,120
|
|
|
6,521
|
|
|
21,846
|
|
|
20,952
|
|
||||
Capital markets and foreign exchange
|
7,309
|
|
|
6,026
|
|
|
21,535
|
|
|
19,102
|
|
||||
Dividends and other investment income
|
12,101
|
|
|
11,686
|
|
|
36,164
|
|
|
42,708
|
|
||||
Loan sales and servicing income
|
8,464
|
|
|
10,695
|
|
|
30,138
|
|
|
29,334
|
|
||||
Fair value and nonhedge derivative loss
|
(4,403
|
)
|
|
(5,820
|
)
|
|
(12,805
|
)
|
|
(17,004
|
)
|
||||
Equity securities gains, net
|
3,165
|
|
|
2,683
|
|
|
8,206
|
|
|
11,935
|
|
||||
Fixed income securities gains, net
|
1,580
|
|
|
3,046
|
|
|
3,726
|
|
|
9,285
|
|
||||
Impairment losses on investment securities:
|
|
|
|
|
|
|
|
||||||||
Impairment losses on investment securities
|
(10,470
|
)
|
|
(3,876
|
)
|
|
(46,873
|
)
|
|
(46,175
|
)
|
||||
Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income)
|
1,403
|
|
|
1,140
|
|
|
23,472
|
|
|
25,922
|
|
||||
Net impairment losses on investment securities
|
(9,067
|
)
|
|
(2,736
|
)
|
|
(23,401
|
)
|
|
(20,253
|
)
|
||||
Other
|
5,243
|
|
|
3,495
|
|
|
15,942
|
|
|
9,820
|
|
||||
Total noninterest income
|
122,190
|
|
|
125,226
|
|
|
368,557
|
|
|
365,711
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
229,185
|
|
|
220,223
|
|
|
686,302
|
|
|
665,622
|
|
||||
Occupancy, net
|
28,230
|
|
|
28,601
|
|
|
83,570
|
|
|
84,721
|
|
||||
Equipment, software and furniture
|
26,560
|
|
|
27,122
|
|
|
79,179
|
|
|
81,216
|
|
||||
Other real estate expense
|
(831
|
)
|
|
207
|
|
|
2,736
|
|
|
14,457
|
|
||||
Credit-related expense
|
7,265
|
|
|
13,316
|
|
|
27,144
|
|
|
39,216
|
|
||||
Provision for unfunded lending commitments
|
(19,935
|
)
|
|
2,264
|
|
|
(22,662
|
)
|
|
3,428
|
|
||||
Professional and legal services
|
16,462
|
|
|
12,749
|
|
|
44,082
|
|
|
36,792
|
|
||||
Advertising
|
6,091
|
|
|
7,326
|
|
|
17,791
|
|
|
19,751
|
|
||||
FDIC premiums
|
9,395
|
|
|
11,278
|
|
|
29,230
|
|
|
32,641
|
|
||||
Amortization of core deposit and other intangibles
|
3,570
|
|
|
4,241
|
|
|
11,151
|
|
|
12,794
|
|
||||
Debt extinguishment cost
|
—
|
|
|
—
|
|
|
40,282
|
|
|
—
|
|
||||
Other
|
64,671
|
|
|
67,648
|
|
|
220,884
|
|
|
198,365
|
|
||||
Total noninterest expense
|
370,663
|
|
|
394,975
|
|
|
1,219,689
|
|
|
1,189,003
|
|
||||
Income before income taxes
|
172,621
|
|
|
170,301
|
|
|
469,759
|
|
|
454,063
|
|
||||
Income taxes
|
61,107
|
|
|
60,704
|
|
|
164,832
|
|
|
163,599
|
|
||||
Net income
|
111,514
|
|
|
109,597
|
|
|
304,927
|
|
|
290,464
|
|
||||
Net loss applicable to noncontrolling interests
|
—
|
|
|
(254
|
)
|
|
(336
|
)
|
|
(800
|
)
|
||||
Net income applicable to controlling interest
|
111,514
|
|
|
109,851
|
|
|
305,263
|
|
|
291,264
|
|
||||
Preferred stock dividends
|
(27,507
|
)
|
|
(47,529
|
)
|
|
(77,547
|
)
|
|
(148,238
|
)
|
||||
Preferred stock redemption
|
125,700
|
|
|
—
|
|
|
125,700
|
|
|
—
|
|
||||
Net earnings applicable to common shareholders
|
$
|
209,707
|
|
|
$
|
62,322
|
|
|
$
|
353,416
|
|
|
$
|
143,026
|
|
Weighted average common shares outstanding during the period:
|
|
|
|
|
|
|
|
||||||||
Basic shares
|
184,112
|
|
|
183,237
|
|
|
183,721
|
|
|
183,008
|
|
||||
Diluted shares
|
184,742
|
|
|
183,383
|
|
|
184,144
|
|
|
183,162
|
|
||||
Net earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.13
|
|
|
$
|
0.34
|
|
|
$
|
1.90
|
|
|
$
|
0.77
|
|
Diluted
|
1.12
|
|
|
0.34
|
|
|
1.90
|
|
|
0.77
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
||||||||||||||||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
111,514
|
|
|
$
|
109,597
|
|
|
$
|
304,927
|
|
|
$
|
290,464
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains (losses) on investment securities
|
|
(14,159
|
)
|
|
43,484
|
|
|
63,937
|
|
|
72,529
|
|
||||
Noncredit-related impairment losses on securities not expected to be sold
|
|
(867
|
)
|
|
(703
|
)
|
|
(13,751
|
)
|
|
(16,006
|
)
|
||||
Reclassification to earnings for realized net fixed income securities losses
|
|
(976
|
)
|
|
(1,881
|
)
|
|
(2,301
|
)
|
|
(5,868
|
)
|
||||
Reclassification to earnings for net credit-related impairment losses on investment securities
|
|
5,588
|
|
|
1,690
|
|
|
14,136
|
|
|
12,296
|
|
||||
Accretion of securities with noncredit-related impairment losses not expected to be sold
|
|
285
|
|
|
192
|
|
|
880
|
|
|
724
|
|
||||
Net unrealized holding gains on derivative instruments
|
|
239
|
|
|
48
|
|
|
236
|
|
|
225
|
|
||||
Reclassification adjustment for increase in interest income recognized in earnings on derivative instruments
|
|
(57
|
)
|
|
(1,421
|
)
|
|
(1,483
|
)
|
|
(6,554
|
)
|
||||
Other comprehensive income (loss)
|
|
(9,947
|
)
|
|
41,409
|
|
|
61,654
|
|
|
57,346
|
|
||||
Comprehensive income
|
|
101,567
|
|
|
151,006
|
|
|
366,581
|
|
|
347,810
|
|
||||
Comprehensive loss applicable to noncontrolling interests
|
|
—
|
|
|
(254
|
)
|
|
(336
|
)
|
|
(800
|
)
|
||||
Comprehensive income applicable to controlling interest
|
|
$
|
101,567
|
|
|
$
|
151,260
|
|
|
$
|
366,917
|
|
|
$
|
348,610
|
|
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
|
|
|
|
|
|
|
305,263
|
|
|
|
|
|
|
|
(336
|
)
|
|
|
304,927
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
61,654
|
|
|
|
|
|
|
|
61,654
|
|
|||||||||||
Issuance of preferred stock
|
800,000
|
|
|
|
|
(15,627
|
)
|
|
|
|
|
|
|
|
|
|
|
|
784,373
|
|
||||||||||
Preferred stock redemption
|
(925,748
|
)
|
|
|
|
580
|
|
|
125,700
|
|
|
|
|
|
|
|
|
|
|
(799,468
|
)
|
|||||||||
Subordinated debt converted to preferred stock
|
1,416
|
|
|
|
|
(206
|
)
|
|
|
|
|
|
|
|
|
|
|
|
1,210
|
|
||||||||||
Net activity under employee plans and related tax benefits
|
|
|
400,807
|
|
|
26,197
|
|
|
|
|
|
|
|
|
|
|
|
|
26,197
|
|
||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(77,547
|
)
|
|
|
|
|
|
|
|
|
|
(77,547
|
)
|
||||||||||
Dividends on common stock, $0.09 per share
|
|
|
|
|
|
|
(16,667
|
)
|
|
|
|
|
|
|
|
|
|
(16,667
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
(109
|
)
|
|
|
|
|
|
|
|
|
|
(109
|
)
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
(4,166
|
)
|
|
|
|
|
|
|
|
|
3,764
|
|
|
|
(402
|
)
|
||||||||||
Balance at September 30, 2013
|
$
|
1,003,970
|
|
|
184,600,005
|
|
|
$
|
4,172,887
|
|
|
$
|
1,540,455
|
|
|
|
$
|
(384,503
|
)
|
|
|
|
$
|
—
|
|
|
|
$
|
6,332,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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
|
|
|
|
|
|
|
291,264
|
|
|
|
|
|
|
|
(800
|
)
|
|
|
290,464
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
57,346
|
|
|
|
|
|
|
|
57,346
|
|
|||||||||||
Issuance of preferred stock
|
143,750
|
|
|
|
|
(2,408
|
)
|
|
|
|
|
|
|
|
|
|
|
|
141,342
|
|
||||||||||
Preferred stock redemption
|
(1,542,500
|
)
|
|
|
|
3,830
|
|
|
(3,830
|
)
|
|
|
|
|
|
|
|
|
|
(1,542,500
|
)
|
|||||||||
Subordinated debt converted to preferred stock
|
99,871
|
|
|
|
|
(14,519
|
)
|
|
|
|
|
|
|
|
|
|
|
|
85,352
|
|
||||||||||
Net activity under employee plans and related tax benefits
|
|
|
21,014
|
|
|
11,856
|
|
|
|
|
|
|
|
|
|
|
|
|
11,856
|
|
||||||||||
Dividends on preferred stock
|
44,696
|
|
|
|
|
|
|
(148,238
|
)
|
|
|
|
|
|
|
|
|
|
(103,542
|
)
|
||||||||||
Dividends on common stock, $0.03 per share
|
|
|
|
|
|
|
(5,546
|
)
|
|
|
|
|
|
|
|
|
|
(5,546
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
237
|
|
|
|
|
|
|
|
|
|
|
237
|
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
18
|
|
|||||||||||
Balance at September 30, 2012
|
$
|
1,123,377
|
|
|
184,156,402
|
|
|
$
|
4,162,001
|
|
|
$
|
1,170,477
|
|
|
|
$
|
(534,738
|
)
|
|
|
|
$
|
(2,862
|
)
|
|
|
$
|
5,918,255
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|||||||||||||||
(In thousands)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net income for the period
|
$
|
111,514
|
|
|
$
|
109,597
|
|
|
$
|
304,927
|
|
|
$
|
290,464
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
||||||||
Debt extinguishment cost
|
—
|
|
|
—
|
|
|
40,282
|
|
|
—
|
|
||||
Net impairment losses on investment securities
|
9,067
|
|
|
2,736
|
|
|
23,401
|
|
|
20,253
|
|
||||
Provision for credit losses
|
(25,508
|
)
|
|
375
|
|
|
(79,260
|
)
|
|
28,056
|
|
||||
Depreciation and amortization
|
42,134
|
|
|
47,810
|
|
|
133,893
|
|
|
167,119
|
|
||||
Deferred income tax expense (benefit)
|
5,832
|
|
|
6,458
|
|
|
(612
|
)
|
|
25,513
|
|
||||
Net decrease (increase) in trading securities
|
(11,876
|
)
|
|
6,576
|
|
|
(10,005
|
)
|
|
26,310
|
|
||||
Net decrease (increase) in loans held for sale
|
49,696
|
|
|
(77,225
|
)
|
|
173,142
|
|
|
(5,848
|
)
|
||||
Net write-downs of and gains/losses from sales of
other real estate owned
|
(1,824
|
)
|
|
309
|
|
|
(1,332
|
)
|
|
13,650
|
|
||||
Change in other liabilities
|
28,047
|
|
|
(10,692
|
)
|
|
(17,463
|
)
|
|
(41,222
|
)
|
||||
Change in other assets
|
70,753
|
|
|
21,314
|
|
|
243,428
|
|
|
110,137
|
|
||||
Other, net
|
(5,362
|
)
|
|
(13,692
|
)
|
|
(16,568
|
)
|
|
(32,064
|
)
|
||||
Net cash provided by operating activities
|
272,473
|
|
|
93,566
|
|
|
793,833
|
|
|
602,368
|
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net decrease (increase) in money market investments
|
12,100
|
|
|
490,947
|
|
|
364,623
|
|
|
(356,703
|
)
|
||||
Proceeds from maturities and paydowns of investment securities
held-to-maturity
|
14,404
|
|
|
37,016
|
|
|
95,841
|
|
|
91,701
|
|
||||
Purchases of investment securities held-to-maturity
|
(8,121
|
)
|
|
(4,450
|
)
|
|
(128,089
|
)
|
|
(38,188
|
)
|
||||
Proceeds from sales, maturities, and paydowns of investment securities available-for-sale
|
246,147
|
|
|
187,180
|
|
|
864,643
|
|
|
863,354
|
|
||||
Purchases of investment securities available-for-sale
|
(408,333
|
)
|
|
(73,636
|
)
|
|
(1,019,454
|
)
|
|
(667,566
|
)
|
||||
Proceeds from sales of loans and leases
|
5,041
|
|
|
24,665
|
|
|
16,098
|
|
|
64,452
|
|
||||
Net loan and lease originations
|
(112,316
|
)
|
|
(397,845
|
)
|
|
(744,263
|
)
|
|
(379,615
|
)
|
||||
Net decrease (increase) in other noninterest-bearing investments
|
(62
|
)
|
|
2,549
|
|
|
19,972
|
|
|
14,723
|
|
||||
Net purchases of premises and equipment
|
(20,905
|
)
|
|
(15,145
|
)
|
|
(63,438
|
)
|
|
(47,962
|
)
|
||||
Proceeds from sales of other real estate owned
|
27,417
|
|
|
59,876
|
|
|
80,076
|
|
|
157,760
|
|
||||
Net cash received (paid) for divestitures
|
3,786
|
|
|
2,667
|
|
|
3,786
|
|
|
(19,901
|
)
|
||||
Net cash provided by (used in) investing activities
|
(240,842
|
)
|
|
313,824
|
|
|
(510,205
|
)
|
|
(317,945
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in deposits
|
653,311
|
|
|
612,290
|
|
|
(463,707
|
)
|
|
926,287
|
|
||||
Net change in short-term funds borrowed
|
17,159
|
|
|
(392,564
|
)
|
|
(78,848
|
)
|
|
(243,356
|
)
|
||||
Proceeds from issuance of long-term debt
|
116,461
|
|
|
49,082
|
|
|
484,408
|
|
|
648,468
|
|
||||
Repayments of long-term debt
|
(153
|
)
|
|
(7,604
|
)
|
|
(570,167
|
)
|
|
(262,783
|
)
|
||||
Debt extinguishment cost paid
|
—
|
|
|
—
|
|
|
(23,305
|
)
|
|
—
|
|
||||
Cash paid for preferred stock redemption
|
(799,468
|
)
|
|
(700,000
|
)
|
|
(799,468
|
)
|
|
(1,542,500
|
)
|
||||
Proceeds from issuances of common and preferred stock
|
200,040
|
|
|
513
|
|
|
792,557
|
|
|
142,516
|
|
||||
Dividends paid on common and preferred stock
|
(34,935
|
)
|
|
(32,770
|
)
|
|
(94,214
|
)
|
|
(109,088
|
)
|
||||
Other, net
|
(2,061
|
)
|
|
(92
|
)
|
|
(7,709
|
)
|
|
(7,399
|
)
|
||||
Net cash provided by (used in) financing activities
|
150,354
|
|
|
(471,145
|
)
|
|
(760,453
|
)
|
|
(447,855
|
)
|
||||
Net increase (decrease) in cash and due from banks
|
181,985
|
|
|
(63,755
|
)
|
|
(476,825
|
)
|
|
(163,432
|
)
|
||||
Cash and due from banks at beginning of period
|
1,183,097
|
|
|
1,124,673
|
|
|
1,841,907
|
|
|
1,224,350
|
|
||||
Cash and due from banks at end of period
|
$
|
1,365,082
|
|
|
$
|
1,060,918
|
|
|
$
|
1,365,082
|
|
|
$
|
1,060,918
|
|
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest
|
$
|
45,134
|
|
|
$
|
65,384
|
|
|
$
|
149,047
|
|
|
$
|
172,712
|
|
Net cash paid for income taxes
|
32,453
|
|
|
67,772
|
|
|
156,456
|
|
|
127,456
|
|
1.
|
BASIS OF PRESENTATION
|
2.
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
(In thousands)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Loans transferred to other real estate owned
|
$
|
12,098
|
|
|
$
|
37,140
|
|
|
$
|
52,916
|
|
|
$
|
141,439
|
|
Beneficial conversion feature transferred from common stock to preferred stock as a result of subordinated debt conversions
|
—
|
|
|
917
|
|
|
206
|
|
|
14,519
|
|
||||
Subordinated debt converted to preferred stock
|
—
|
|
|
5,386
|
|
|
1,210
|
|
|
85,352
|
|
||||
Preferred stock transferred to common stock as a result of the Series C preferred stock redemption
|
580
|
|
|
—
|
|
|
580
|
|
|
—
|
|
||||
Preferred stock/beneficial conversion feature transferred to retained earnings as a result of the Series C preferred stock redemption
|
125,700
|
|
|
—
|
|
|
125,700
|
|
|
—
|
|
3.
|
CASH AND MONEY MARKET INVESTMENTS
|
|
|
September 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
|
|
$
|
209,070
|
|
|
$
|
—
|
|
|
$
|
209,070
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
209,070
|
|
Derivatives (included in other assets)
|
|
55,568
|
|
|
—
|
|
|
55,568
|
|
|
(8,282
|
)
|
|
—
|
|
|
47,286
|
|
||||||
|
|
$
|
264,638
|
|
|
$
|
—
|
|
|
$
|
264,638
|
|
|
$
|
(8,282
|
)
|
|
$
|
—
|
|
|
$
|
256,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds purchased and security repurchase agreements
|
|
$
|
252,591
|
|
|
$
|
—
|
|
|
$
|
252,591
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
252,591
|
|
Derivatives (included in other liabilities)
|
|
59,914
|
|
|
—
|
|
|
59,914
|
|
|
(8,282
|
)
|
|
(37,232
|
)
|
|
14,400
|
|
||||||
|
|
$
|
312,505
|
|
|
$
|
—
|
|
|
$
|
312,505
|
|
|
$
|
(8,282
|
)
|
|
$
|
(37,232
|
)
|
|
$
|
266,991
|
|
|
|
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
|
|
September 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
|
$
|
558,134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
558,134
|
|
|
$
|
11,537
|
|
|
$
|
5,061
|
|
|
$
|
564,610
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
255,159
|
|
|
—
|
|
|
54,432
|
|
|
200,727
|
|
|
5,879
|
|
|
55,058
|
|
|
151,548
|
|
|||||||
Other
|
21,061
|
|
|
—
|
|
|
2,173
|
|
|
18,888
|
|
|
900
|
|
|
8,138
|
|
|
11,650
|
|
|||||||
Other debt securities
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
|
834,454
|
|
|
—
|
|
|
56,605
|
|
|
777,849
|
|
|
18,316
|
|
|
68,257
|
|
|
727,908
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
39,908
|
|
|
136
|
|
|
—
|
|
|
40,044
|
|
|
|
|
|
|
40,044
|
|
|||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agency securities
|
440,170
|
|
|
2,120
|
|
|
197
|
|
|
442,093
|
|
|
|
|
|
|
442,093
|
|
|||||||||
Agency guaranteed mortgage-backed securities
|
308,964
|
|
|
11,619
|
|
|
609
|
|
|
319,974
|
|
|
|
|
|
|
319,974
|
|
|||||||||
Small Business Administration loan-backed securities
|
1,139,211
|
|
|
27,829
|
|
|
1,614
|
|
|
1,165,426
|
|
|
|
|
|
|
1,165,426
|
|
|||||||||
Municipal securities
|
64,694
|
|
|
1,509
|
|
|
1,034
|
|
|
65,169
|
|
|
|
|
|
|
65,169
|
|
|||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
1,521,628
|
|
|
14,391
|
|
|
534,123
|
|
|
1,001,896
|
|
|
|
|
|
|
1,001,896
|
|
|||||||||
Trust preferred securities – real estate investment trusts
|
39,391
|
|
|
—
|
|
|
19,874
|
|
|
19,517
|
|
|
|
|
|
|
19,517
|
|
|||||||||
Auction rate securities
|
6,506
|
|
|
135
|
|
|
16
|
|
|
6,625
|
|
|
|
|
|
|
6,625
|
|
|||||||||
Other
|
18,496
|
|
|
406
|
|
|
2,788
|
|
|
16,114
|
|
|
|
|
|
|
16,114
|
|
|||||||||
|
3,578,968
|
|
|
58,145
|
|
|
560,255
|
|
|
3,076,858
|
|
|
|
|
|
|
3,076,858
|
|
|||||||||
Mutual funds and other
|
262,493
|
|
|
182
|
|
|
5,644
|
|
|
257,031
|
|
|
|
|
|
|
257,031
|
|
|||||||||
|
3,841,461
|
|
|
58,327
|
|
|
565,899
|
|
|
3,333,889
|
|
|
|
|
|
|
3,333,889
|
|
|||||||||
Total
|
$
|
4,675,915
|
|
|
$
|
58,327
|
|
|
$
|
622,504
|
|
|
$
|
4,111,738
|
|
|
|
|
|
|
$
|
4,061,797
|
|
|
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
|
$
|
66,525
|
|
|
$
|
66,502
|
|
|
$
|
466,546
|
|
|
$
|
441,052
|
|
Due after one year through five years
|
200,748
|
|
|
198,494
|
|
|
1,112,538
|
|
|
1,050,208
|
|
||||
Due after five years through ten years
|
213,234
|
|
|
179,794
|
|
|
640,232
|
|
|
597,543
|
|
||||
Due after ten years
|
353,947
|
|
|
283,118
|
|
|
1,359,652
|
|
|
988,055
|
|
||||
|
$
|
834,454
|
|
|
$
|
727,908
|
|
|
$
|
3,578,968
|
|
|
$
|
3,076,858
|
|
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:
|
|||||||||||||||||||||||
|
September 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
|
$
|
4,247
|
|
|
$
|
91,497
|
|
|
$
|
814
|
|
|
$
|
10,915
|
|
|
$
|
5,061
|
|
|
$
|
102,412
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trust preferred securities – banks and insurance
|
—
|
|
|
—
|
|
|
109,490
|
|
|
151,350
|
|
|
109,490
|
|
|
151,350
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
10,311
|
|
|
11,291
|
|
|
10,311
|
|
|
11,291
|
|
||||||
|
4,247
|
|
|
91,497
|
|
|
120,615
|
|
|
173,556
|
|
|
124,862
|
|
|
265,053
|
|
||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
119
|
|
|
24,255
|
|
|
78
|
|
|
6,495
|
|
|
197
|
|
|
30,750
|
|
||||||
Agency guaranteed mortgage-backed securities
|
605
|
|
|
41,847
|
|
|
4
|
|
|
609
|
|
|
609
|
|
|
42,456
|
|
||||||
Small Business Administration loan-backed securities
|
784
|
|
|
76,868
|
|
|
830
|
|
|
39,855
|
|
|
1,614
|
|
|
116,723
|
|
||||||
Municipal securities
|
20
|
|
|
2,871
|
|
|
1,014
|
|
|
8,507
|
|
|
1,034
|
|
|
11,378
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Trust preferred securities – banks and insurance
|
1,138
|
|
|
54,760
|
|
|
532,985
|
|
|
840,551
|
|
|
534,123
|
|
|
895,311
|
|
||||||
Trust preferred securities – real estate investment trusts
|
—
|
|
|
—
|
|
|
19,874
|
|
|
19,518
|
|
|
19,874
|
|
|
19,518
|
|
||||||
Auction rate securities
|
—
|
|
|
—
|
|
|
16
|
|
|
896
|
|
|
16
|
|
|
896
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
2,788
|
|
|
13,514
|
|
|
2,788
|
|
|
13,514
|
|
||||||
|
2,666
|
|
|
200,601
|
|
|
557,589
|
|
|
929,945
|
|
|
560,255
|
|
|
1,130,546
|
|
||||||
Mutual funds and other
|
5,644
|
|
|
124,448
|
|
|
—
|
|
|
—
|
|
|
5,644
|
|
|
124,448
|
|
||||||
|
8,310
|
|
|
325,049
|
|
|
557,589
|
|
|
929,945
|
|
|
565,899
|
|
|
1,254,994
|
|
||||||
Total
|
$
|
12,557
|
|
|
$
|
416,546
|
|
|
$
|
678,204
|
|
|
$
|
1,103,501
|
|
|
$
|
690,761
|
|
|
$
|
1,520,047
|
|
|
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 an issuer that first exercised this deferral option during the second quarter of 2008 and failed to come current within the allowable 20 quarter deferral period causing default. At
September 30, 2013
,
107
banks underlying our CDO tranches had come current after a period of deferral, while
158
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
September 30, 2013 |
|
Nine Months Ended
September 30, 2013 |
||||||||||||||||||||
HTM
|
|
AFS
|
|
Total
|
|
HTM
|
|
AFS
|
|
Total
|
|||||||||||||
Balance of credit-related OTTI at beginning
of period
|
$
|
(13,952
|
)
|
|
$
|
(406,577
|
)
|
|
$
|
(420,529
|
)
|
|
$
|
(13,549
|
)
|
|
$
|
(394,494
|
)
|
|
$
|
(408,043
|
)
|
Additions recognized in earnings during the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit-related OTTI on securities not previously impaired
|
—
|
|
|
(168
|
)
|
|
(168
|
)
|
|
(403
|
)
|
|
(168
|
)
|
|
(571
|
)
|
||||||
Additional credit-related OTTI on securities previously impaired
|
—
|
|
|
(8,899
|
)
|
|
(8,899
|
)
|
|
—
|
|
|
(22,830
|
)
|
|
(22,830
|
)
|
||||||
Subtotal of amounts recognized in earnings
|
—
|
|
|
(9,067
|
)
|
|
(9,067
|
)
|
|
(403
|
)
|
|
(22,998
|
)
|
|
(23,401
|
)
|
||||||
Reductions for securities sold or paid off during the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,848
|
|
|
1,848
|
|
||||||
Balance of credit-related OTTI at end of period
|
$
|
(13,952
|
)
|
|
$
|
(415,644
|
)
|
|
$
|
(429,596
|
)
|
|
$
|
(13,952
|
)
|
|
$
|
(415,644
|
)
|
|
$
|
(429,596
|
)
|
(In thousands)
|
Three Months Ended
September 30, 2012 |
|
Nine Months Ended
September 30, 2012 |
||||||||||||||||||||
HTM
|
|
AFS
|
|
Total
|
|
HTM
|
|
AFS
|
|
Total
|
|||||||||||||
Balance of credit-related OTTI at beginning
of period
|
$
|
(6,467
|
)
|
|
$
|
(315,183
|
)
|
|
$
|
(321,650
|
)
|
|
$
|
(6,126
|
)
|
|
$
|
(314,860
|
)
|
|
$
|
(320,986
|
)
|
Additions recognized in earnings during the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit-related OTTI on securities not previously impaired
|
—
|
|
|
—
|
|
|
—
|
|
|
(341
|
)
|
|
—
|
|
|
(341
|
)
|
||||||
Additional credit-related OTTI on securities previously impaired
|
(657
|
)
|
|
(2,079
|
)
|
|
(2,736
|
)
|
|
(657
|
)
|
|
(19,255
|
)
|
|
(19,912
|
)
|
||||||
Subtotal of amounts recognized in earnings
|
(657
|
)
|
|
(2,079
|
)
|
|
(2,736
|
)
|
|
(998
|
)
|
|
(19,255
|
)
|
|
(20,253
|
)
|
||||||
Reductions for securities sold or paid off during the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,853
|
|
|
16,853
|
|
||||||
Balance of credit-related OTTI at end of period
|
$
|
(7,124
|
)
|
|
$
|
(317,262
|
)
|
|
$
|
(324,386
|
)
|
|
$
|
(7,124
|
)
|
|
$
|
(317,262
|
)
|
|
$
|
(324,386
|
)
|
(In thousands)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
HTM
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,114
|
|
|
$
|
16,718
|
|
AFS
|
1,403
|
|
|
1,140
|
|
|
7,358
|
|
|
9,204
|
|
||||
|
$
|
1,403
|
|
|
$
|
1,140
|
|
|
$
|
23,472
|
|
|
$
|
25,922
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||||||||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
|
September 30, 2013
|
|
September 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
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
657
|
|
|
$
|
63
|
|
|
$
|
403
|
|
|
$
|
120
|
|
|
$
|
998
|
|
|
Available-for-sale
|
1,551
|
|
|
9,070
|
|
|
3,026
|
|
|
2,081
|
|
|
7,989
|
|
|
27,324
|
|
|
14,955
|
|
|
25,045
|
|
|||||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Nonmarketable equity securities
|
4,802
|
|
|
1,637
|
|
|
3,230
|
|
|
547
|
|
|
9,868
|
|
|
1,662
|
|
|
22,951
|
|
|
11,016
|
|
|||||||||
|
6,385
|
|
|
10,707
|
|
|
6,278
|
|
|
3,285
|
|
|
17,920
|
|
|
29,389
|
|
|
38,026
|
|
|
37,059
|
|
|||||||||
Net gains (losses)
|
|
|
$
|
(4,322
|
)
|
|
|
|
$
|
2,993
|
|
|
|
|
$
|
(11,469
|
)
|
|
|
|
$
|
967
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Statement of income information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net impairment losses on investment securities
|
|
|
$
|
(9,067
|
)
|
|
|
|
$
|
(2,736
|
)
|
|
|
|
$
|
(23,401
|
)
|
|
|
|
$
|
(20,253
|
)
|
|||||||||
Equity securities gains, net
|
|
|
3,165
|
|
|
|
|
2,683
|
|
|
|
|
8,206
|
|
|
|
|
11,935
|
|
|||||||||||||
Fixed income securities gains, net
|
|
|
1,580
|
|
|
|
|
3,046
|
|
|
|
|
3,726
|
|
|
|
|
9,285
|
|
|||||||||||||
Net gains (losses)
|
|
|
$
|
(4,322
|
)
|
|
|
|
$
|
2,993
|
|
|
|
|
$
|
(11,469
|
)
|
|
|
|
$
|
967
|
|
5.
|
LOANS AND ALLOWANCE FOR CREDIT LOSSES
|
(In thousands)
|
September 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Loans held for sale
|
$
|
114,810
|
|
|
$
|
251,651
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
11,904,477
|
|
|
$
|
11,256,945
|
|
Leasing
|
375,125
|
|
|
422,513
|
|
||
Owner occupied
|
7,378,586
|
|
|
7,589,082
|
|
||
Municipal
|
448,643
|
|
|
494,183
|
|
||
Total commercial
|
20,106,831
|
|
|
19,762,723
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
2,240,295
|
|
|
1,939,413
|
|
||
Term
|
7,928,540
|
|
|
8,062,819
|
|
||
Total commercial real estate
|
10,168,835
|
|
|
10,002,232
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
2,124,328
|
|
|
2,177,680
|
|
||
1-4 family residential
|
4,636,895
|
|
|
4,350,329
|
|
||
Construction and other consumer real estate
|
321,436
|
|
|
321,235
|
|
||
Bankcard and other revolving plans
|
331,966
|
|
|
306,428
|
|
||
Other
|
207,578
|
|
|
216,379
|
|
||
Total consumer
|
7,622,203
|
|
|
7,372,051
|
|
||
FDIC-supported loans
|
374,861
|
|
|
528,241
|
|
||
Total loans
|
$
|
38,272,730
|
|
|
$
|
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 September 30, 2013
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
1
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
486,353
|
|
|
$
|
251,278
|
|
|
$
|
70,366
|
|
|
$
|
5,915
|
|
|
$
|
813,912
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
(1,768
|
)
|
|
(4,520
|
)
|
|
569
|
|
|
146
|
|
|
(5,573
|
)
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,118
|
)
|
|
(2,118
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(11,465
|
)
|
|
(5,738
|
)
|
|
(5,535
|
)
|
|
(88
|
)
|
|
(22,826
|
)
|
|||||
Recoveries
|
6,155
|
|
|
2,988
|
|
|
3,109
|
|
|
1,876
|
|
|
14,128
|
|
|||||
Net loan and lease charge-offs
|
(5,310
|
)
|
|
(2,750
|
)
|
|
(2,426
|
)
|
|
1,788
|
|
|
(8,698
|
)
|
|||||
Balance at end of period
|
$
|
479,275
|
|
|
$
|
244,008
|
|
|
$
|
68,509
|
|
|
$
|
5,731
|
|
|
$
|
797,523
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
63,272
|
|
|
$
|
39,454
|
|
|
$
|
1,356
|
|
|
$
|
—
|
|
|
$
|
104,082
|
|
Provision charged (credited) to earnings
|
(16,133
|
)
|
|
(6,010
|
)
|
|
2,208
|
|
|
—
|
|
|
(19,935
|
)
|
|||||
Balance at end of period
|
$
|
47,139
|
|
|
$
|
33,444
|
|
|
$
|
3,564
|
|
|
$
|
—
|
|
|
$
|
84,147
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
479,275
|
|
|
$
|
244,008
|
|
|
$
|
68,509
|
|
|
$
|
5,731
|
|
|
$
|
797,523
|
|
Reserve for unfunded lending commitments
|
47,139
|
|
|
33,444
|
|
|
3,564
|
|
|
—
|
|
|
84,147
|
|
|||||
Total allowance for credit losses
|
$
|
526,414
|
|
|
$
|
277,452
|
|
|
$
|
72,073
|
|
|
$
|
5,731
|
|
|
$
|
881,670
|
|
|
Nine Months Ended September 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
|
(10,179
|
)
|
|
(34,370
|
)
|
|
(12,725
|
)
|
|
676
|
|
|
(56,598
|
)
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,756
|
)
|
|
(9,756
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(48,073
|
)
|
|
(19,069
|
)
|
|
(24,574
|
)
|
|
(1,676
|
)
|
|
(93,392
|
)
|
|||||
Recoveries
|
26,619
|
|
|
20,471
|
|
|
10,152
|
|
|
3,940
|
|
|
61,182
|
|
|||||
Net loan and lease charge-offs
|
(21,454
|
)
|
|
1,402
|
|
|
(14,422
|
)
|
|
2,264
|
|
|
(32,210
|
)
|
|||||
Balance at end of period
|
$
|
479,275
|
|
|
$
|
244,008
|
|
|
$
|
68,509
|
|
|
$
|
5,731
|
|
|
$
|
797,523
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
67,374
|
|
|
$
|
37,852
|
|
|
$
|
1,583
|
|
|
$
|
—
|
|
|
$
|
106,809
|
|
Provision charged (credited) to earnings
|
(20,235
|
)
|
|
(4,408
|
)
|
|
1,981
|
|
|
—
|
|
|
(22,662
|
)
|
|||||
Balance at end of period
|
$
|
47,139
|
|
|
$
|
33,444
|
|
|
$
|
3,564
|
|
|
$
|
—
|
|
|
$
|
84,147
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
479,275
|
|
|
$
|
244,008
|
|
|
$
|
68,509
|
|
|
$
|
5,731
|
|
|
$
|
797,523
|
|
Reserve for unfunded lending commitments
|
47,139
|
|
|
33,444
|
|
|
3,564
|
|
|
—
|
|
|
84,147
|
|
|||||
Total allowance for credit losses
|
$
|
526,414
|
|
|
$
|
277,452
|
|
|
$
|
72,073
|
|
|
$
|
5,731
|
|
|
$
|
881,670
|
|
|
Three Months Ended September 30, 2012
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
1
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
542,170
|
|
|
$
|
307,965
|
|
|
$
|
102,391
|
|
|
$
|
20,917
|
|
|
$
|
973,443
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
(4,324
|
)
|
|
2,157
|
|
|
3,351
|
|
|
(3,073
|
)
|
|
(1,889
|
)
|
|||||
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,908
|
)
|
|
(5,908
|
)
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loan and lease charge-offs
|
(26,424
|
)
|
|
(20,264
|
)
|
|
(11,391
|
)
|
|
(702
|
)
|
|
(58,781
|
)
|
|||||
Recoveries
|
12,013
|
|
|
3,312
|
|
|
3,262
|
|
|
1,616
|
|
|
20,203
|
|
|||||
Net loan and lease charge-offs
|
(14,411
|
)
|
|
(16,952
|
)
|
|
(8,129
|
)
|
|
914
|
|
|
(38,578
|
)
|
|||||
Balance at end of period
|
$
|
523,435
|
|
|
$
|
293,170
|
|
|
$
|
97,613
|
|
|
$
|
12,850
|
|
|
$
|
927,068
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
70,553
|
|
|
$
|
31,663
|
|
|
$
|
1,370
|
|
|
$
|
—
|
|
|
$
|
103,586
|
|
Provision charged (credited) to earnings
|
542
|
|
|
1,741
|
|
|
(19
|
)
|
|
—
|
|
|
2,264
|
|
|||||
Balance at end of period
|
$
|
71,095
|
|
|
$
|
33,404
|
|
|
$
|
1,351
|
|
|
$
|
—
|
|
|
$
|
105,850
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
523,435
|
|
|
$
|
293,170
|
|
|
$
|
97,613
|
|
|
$
|
12,850
|
|
|
$
|
927,068
|
|
Reserve for unfunded lending commitments
|
71,095
|
|
|
33,404
|
|
|
1,351
|
|
|
—
|
|
|
105,850
|
|
|||||
Total allowance for credit losses
|
$
|
594,530
|
|
|
$
|
326,574
|
|
|
$
|
98,964
|
|
|
$
|
12,850
|
|
|
$
|
1,032,918
|
|
|
Nine Months Ended September 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
|
20,859
|
|
|
(2,769
|
)
|
|
9,989
|
|
|
(3,451
|
)
|
|
24,628
|
|
Adjustment for FDIC-supported loans
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,821
|
)
|
|
(12,821
|
)
|
Deductions:
|
|
|
|
|
|
|
|
|
|
|||||
Gross loan and lease charge-offs
|
(91,477
|
)
|
|
(70,098
|
)
|
|
(45,722
|
)
|
|
(5,183
|
)
|
|
(212,480
|
)
|
Recoveries
|
32,702
|
|
|
22,290
|
|
|
10,231
|
|
|
10,833
|
|
|
76,056
|
|
Net loan and lease charge-offs
|
(58,775
|
)
|
|
(47,808
|
)
|
|
(35,491
|
)
|
|
5,650
|
|
|
(136,424
|
)
|
Balance at end of period
|
523,435
|
|
|
293,170
|
|
|
97,613
|
|
|
12,850
|
|
|
927,068
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
|||||
Balance at beginning of period
|
77,232
|
|
|
23,572
|
|
|
1,618
|
|
|
—
|
|
|
102,422
|
|
Provision charged (credited) to earnings
|
(6,137
|
)
|
|
9,832
|
|
|
(267
|
)
|
|
|
|
3,428
|
|
|
Balance at end of period
|
71,095
|
|
|
33,404
|
|
|
1,351
|
|
|
—
|
|
|
105,850
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total allowance for credit losses at end of period:
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses
|
523,435
|
|
|
293,170
|
|
|
97,613
|
|
|
12,850
|
|
|
927,068
|
|
Reserve for unfunded lending commitments
|
71,095
|
|
|
33,404
|
|
|
1,351
|
|
|
—
|
|
|
105,850
|
|
Total allowance for credit losses
|
594,530
|
|
|
326,574
|
|
|
98,964
|
|
|
12,850
|
|
|
1,032,918
|
|
The ALLL and outstanding loan balances according to the Company’s impairment method are summarized as follows:
|
|||||||||||||||||||
|
September 30, 2013
|
||||||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
FDIC-
supported
|
|
Total
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
39,950
|
|
|
$
|
15,117
|
|
|
$
|
12,189
|
|
|
$
|
—
|
|
|
$
|
67,256
|
|
Collectively evaluated for impairment
|
439,325
|
|
|
228,891
|
|
|
56,320
|
|
|
607
|
|
|
725,143
|
|
|||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
5,124
|
|
|
5,124
|
|
|||||
Total
|
$
|
479,275
|
|
|
$
|
244,008
|
|
|
$
|
68,509
|
|
|
$
|
5,731
|
|
|
$
|
797,523
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Outstanding loan balances:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
327,999
|
|
|
$
|
322,996
|
|
|
$
|
104,308
|
|
|
$
|
1,051
|
|
|
$
|
756,354
|
|
Collectively evaluated for impairment
|
19,778,832
|
|
|
9,845,839
|
|
|
7,517,895
|
|
|
40,559
|
|
|
37,183,125
|
|
|||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
333,251
|
|
|
333,251
|
|
|||||
Total
|
$
|
20,106,831
|
|
|
$
|
10,168,835
|
|
|
$
|
7,622,203
|
|
|
$
|
374,861
|
|
|
$
|
38,272,730
|
|
|
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
|
|
Nonaccrual loans are summarized as follows:
|
|||||||
(In thousands)
|
September 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
100,188
|
|
|
$
|
90,859
|
|
Leasing
|
796
|
|
|
838
|
|
||
Owner occupied
|
157,609
|
|
|
206,031
|
|
||
Municipal
|
10,006
|
|
|
9,234
|
|
||
Total commercial
|
268,599
|
|
|
306,962
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
65,320
|
|
|
107,658
|
|
||
Term
|
60,378
|
|
|
124,615
|
|
||
Total commercial real estate
|
125,698
|
|
|
232,273
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
8,425
|
|
|
14,247
|
|
||
1-4 family residential
|
57,658
|
|
|
70,180
|
|
||
Construction and other consumer real estate
|
4,080
|
|
|
4,560
|
|
||
Bankcard and other revolving plans
|
1,186
|
|
|
1,190
|
|
||
Other
|
1,149
|
|
|
1,398
|
|
||
Total consumer loans
|
72,498
|
|
|
91,575
|
|
||
FDIC-supported loans
|
4,744
|
|
|
17,343
|
|
||
Total
|
$
|
471,539
|
|
|
$
|
648,153
|
|
|
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
|
|
|
September 30, 2013
|
||||||||||||||||||||||
(In thousands)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
11,176,352
|
|
|
$
|
331,846
|
|
|
$
|
391,335
|
|
|
$
|
4,944
|
|
|
$
|
11,904,477
|
|
|
|
||
Leasing
|
369,152
|
|
|
2,875
|
|
|
3,098
|
|
|
—
|
|
|
375,125
|
|
|
|
|||||||
Owner occupied
|
6,760,607
|
|
|
131,895
|
|
|
484,779
|
|
|
1,305
|
|
|
7,378,586
|
|
|
|
|||||||
Municipal
|
438,637
|
|
|
—
|
|
|
10,006
|
|
|
—
|
|
|
448,643
|
|
|
|
|||||||
Total commercial
|
18,744,748
|
|
|
466,616
|
|
|
889,218
|
|
|
6,249
|
|
|
20,106,831
|
|
|
$
|
479,275
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
2,094,934
|
|
|
15,250
|
|
|
127,875
|
|
|
2,236
|
|
|
2,240,295
|
|
|
|
|||||||
Term
|
7,414,358
|
|
|
213,538
|
|
|
300,644
|
|
|
—
|
|
|
7,928,540
|
|
|
|
|||||||
Total commercial real estate
|
9,509,292
|
|
|
228,788
|
|
|
428,519
|
|
|
2,236
|
|
|
10,168,835
|
|
|
244,008
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,105,327
|
|
|
—
|
|
|
19,001
|
|
|
—
|
|
|
2,124,328
|
|
|
|
|||||||
1-4 family residential
|
4,563,611
|
|
|
—
|
|
|
73,284
|
|
|
—
|
|
|
4,636,895
|
|
|
|
|||||||
Construction and other consumer real estate
|
312,046
|
|
|
—
|
|
|
9,390
|
|
|
—
|
|
|
321,436
|
|
|
|
|||||||
Bankcard and other revolving plans
|
329,442
|
|
|
—
|
|
|
2,524
|
|
|
—
|
|
|
331,966
|
|
|
|
|||||||
Other
|
206,174
|
|
|
—
|
|
|
1,404
|
|
|
—
|
|
|
207,578
|
|
|
|
|||||||
Total consumer loans
|
7,516,600
|
|
|
—
|
|
|
105,603
|
|
|
—
|
|
|
7,622,203
|
|
|
68,509
|
|
||||||
FDIC-supported loans
|
253,788
|
|
|
20,401
|
|
|
100,672
|
|
|
—
|
|
|
374,861
|
|
|
5,731
|
|
||||||
Total
|
$
|
36,024,428
|
|
|
$
|
715,805
|
|
|
$
|
1,524,012
|
|
|
$
|
8,485
|
|
|
$
|
38,272,730
|
|
|
$
|
797,523
|
|
|
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
|
|
|
September 30, 2013
|
||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
176,337
|
|
|
$
|
29,242
|
|
|
$
|
124,439
|
|
|
$
|
153,681
|
|
|
$
|
20,670
|
|
Owner occupied
|
166,488
|
|
|
50,883
|
|
|
102,850
|
|
|
153,733
|
|
|
15,668
|
|
|||||
Total commercial
|
342,825
|
|
|
80,125
|
|
|
227,289
|
|
|
307,414
|
|
|
36,338
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
130,435
|
|
|
48,912
|
|
|
64,479
|
|
|
113,391
|
|
|
3,572
|
|
|||||
Term
|
207,519
|
|
|
47,754
|
|
|
134,593
|
|
|
182,347
|
|
|
10,243
|
|
|||||
Total commercial real estate
|
337,954
|
|
|
96,666
|
|
|
199,072
|
|
|
295,738
|
|
|
13,815
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
15,056
|
|
|
9,780
|
|
|
2,464
|
|
|
12,244
|
|
|
182
|
|
|||||
1-4 family residential
|
101,913
|
|
|
39,774
|
|
|
46,529
|
|
|
86,303
|
|
|
11,778
|
|
|||||
Construction and other consumer real estate
|
6,238
|
|
|
3,169
|
|
|
1,603
|
|
|
4,772
|
|
|
229
|
|
|||||
Other
|
753
|
|
|
753
|
|
|
—
|
|
|
753
|
|
|
—
|
|
|||||
Total consumer loans
|
123,960
|
|
|
53,476
|
|
|
50,596
|
|
|
104,072
|
|
|
12,189
|
|
|||||
FDIC-supported loans
|
441,347
|
|
|
121,381
|
|
|
212,921
|
|
|
334,302
|
|
|
5,124
|
|
|||||
Total
|
$
|
1,246,086
|
|
|
$
|
351,648
|
|
|
$
|
689,878
|
|
|
$
|
1,041,526
|
|
|
$
|
67,466
|
|
|
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
September 30, 2013 |
|
Nine Months Ended
September 30, 2013 |
|
||||||||||||
(In thousands)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
199,217
|
|
|
$
|
1,105
|
|
|
$
|
175,040
|
|
|
$
|
2,594
|
|
|
Owner occupied
|
217,439
|
|
|
915
|
|
|
211,225
|
|
|
2,810
|
|
|
||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Total commercial
|
416,656
|
|
|
2,020
|
|
|
386,265
|
|
|
5,404
|
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
135,013
|
|
|
623
|
|
|
139,194
|
|
|
2,754
|
|
|
||||
Term
|
288,980
|
|
|
1,969
|
|
|
285,307
|
|
|
5,571
|
|
|
||||
Total commercial real estate
|
423,993
|
|
|
2,592
|
|
|
424,501
|
|
|
8,325
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
14,606
|
|
|
120
|
|
|
12,943
|
|
|
262
|
|
|
||||
1-4 family residential
|
103,379
|
|
|
457
|
|
|
100,012
|
|
|
1,171
|
|
|
||||
Construction and other consumer real estate
|
5,501
|
|
|
49
|
|
|
5,767
|
|
|
141
|
|
|
||||
Bankcard and other revolving plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Other
|
1,751
|
|
|
—
|
|
|
1,784
|
|
|
—
|
|
|
||||
Total consumer loans
|
125,237
|
|
|
626
|
|
|
120,506
|
|
|
1,574
|
|
|
||||
FDIC-supported loans
|
363,293
|
|
|
20,004
|
|
1
|
404,826
|
|
|
79,153
|
|
1
|
||||
Total
|
$
|
1,329,179
|
|
|
$
|
25,242
|
|
|
$
|
1,336,098
|
|
|
$
|
94,456
|
|
|
|
Three Months Ended
September 30, 2012 |
|
Nine Months Ended
September 30, 2012 |
|
||||||||||||
(In thousands)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
133,120
|
|
|
$
|
830
|
|
|
$
|
128,930
|
|
|
$
|
2,395
|
|
|
Owner occupied
|
187,072
|
|
|
558
|
|
|
168,328
|
|
|
1,729
|
|
|
||||
Municipal
|
3,943
|
|
|
—
|
|
|
1,314
|
|
|
—
|
|
|
||||
Total commercial
|
324,135
|
|
|
1,388
|
|
|
298,572
|
|
|
4,124
|
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
205,295
|
|
|
1,133
|
|
|
188,064
|
|
|
2,780
|
|
|
||||
Term
|
288,735
|
|
|
1,723
|
|
|
258,159
|
|
|
5,806
|
|
|
||||
Total commercial real estate
|
494,030
|
|
|
2,856
|
|
|
446,223
|
|
|
8,586
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
742
|
|
|
3
|
|
|
847
|
|
|
6
|
|
|
||||
1-4 family residential
|
86,103
|
|
|
431
|
|
|
79,993
|
|
|
1,162
|
|
|
||||
Construction and other consumer real estate
|
6,764
|
|
|
43
|
|
|
6,641
|
|
|
128
|
|
|
||||
Bankcard and other revolving plans
|
287
|
|
|
—
|
|
|
128
|
|
|
—
|
|
|
||||
Other
|
1,972
|
|
|
—
|
|
|
2,320
|
|
|
—
|
|
|
||||
Total consumer loans
|
95,868
|
|
|
477
|
|
|
89,929
|
|
|
1,296
|
|
|
||||
FDIC-supported loans
|
94,890
|
|
|
14,055
|
|
1
|
102,709
|
|
|
34,202
|
|
1
|
||||
Total
|
$
|
1,008,923
|
|
|
$
|
18,776
|
|
|
$
|
937,433
|
|
|
$
|
48,208
|
|
|
|
September 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
|
$
|
355
|
|
|
$
|
15,794
|
|
|
$
|
—
|
|
|
$
|
6,856
|
|
|
$
|
14,326
|
|
|
$
|
34,928
|
|
|
$
|
72,259
|
|
Owner occupied
|
22,121
|
|
|
4,768
|
|
|
994
|
|
|
2,961
|
|
|
10,145
|
|
|
19,866
|
|
|
60,855
|
|
|||||||
Total commercial
|
22,476
|
|
|
20,562
|
|
|
994
|
|
|
9,817
|
|
|
24,471
|
|
|
54,794
|
|
|
133,114
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,062
|
|
|
11,688
|
|
|
—
|
|
|
1,120
|
|
|
8,836
|
|
|
27,962
|
|
|
51,668
|
|
|||||||
Term
|
34,482
|
|
|
9,516
|
|
|
5,331
|
|
|
5,766
|
|
|
22,405
|
|
|
58,945
|
|
|
136,445
|
|
|||||||
Total commercial real estate
|
36,544
|
|
|
21,204
|
|
|
5,331
|
|
|
6,886
|
|
|
31,241
|
|
|
86,907
|
|
|
188,113
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
743
|
|
|
—
|
|
|
8,922
|
|
|
—
|
|
|
325
|
|
|
335
|
|
|
10,325
|
|
|||||||
1-4 family residential
|
2,649
|
|
|
1,294
|
|
|
7,861
|
|
|
647
|
|
|
4,482
|
|
|
33,613
|
|
|
50,546
|
|
|||||||
Construction and other consumer real estate
|
133
|
|
|
963
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
1,455
|
|
|
2,695
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total consumer loans
|
3,525
|
|
|
2,257
|
|
|
16,783
|
|
|
647
|
|
|
4,951
|
|
|
35,403
|
|
|
63,566
|
|
|||||||
Total accruing
|
62,545
|
|
|
44,023
|
|
|
23,108
|
|
|
17,350
|
|
|
60,663
|
|
|
177,104
|
|
|
384,793
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
2,609
|
|
|
8,958
|
|
|
68
|
|
|
156
|
|
|
1,362
|
|
|
13,416
|
|
|
26,569
|
|
|||||||
Owner occupied
|
3,096
|
|
|
1,471
|
|
|
1,074
|
|
|
3,823
|
|
|
11,182
|
|
|
12,944
|
|
|
33,590
|
|
|||||||
Total commercial
|
5,705
|
|
|
10,429
|
|
|
1,142
|
|
|
3,979
|
|
|
12,544
|
|
|
26,360
|
|
|
60,159
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
11,822
|
|
|
1,750
|
|
|
—
|
|
|
—
|
|
|
5,591
|
|
|
40,008
|
|
|
59,171
|
|
|||||||
Term
|
2,480
|
|
|
—
|
|
|
—
|
|
|
2,051
|
|
|
325
|
|
|
9,780
|
|
|
14,636
|
|
|||||||
Total commercial real estate
|
14,302
|
|
|
1,750
|
|
|
—
|
|
|
2,051
|
|
|
5,916
|
|
|
49,788
|
|
|
73,807
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1,575
|
|
|
—
|
|
|
222
|
|
|
130
|
|
|
1,927
|
|
|||||||
1-4 family residential
|
4,455
|
|
|
1,420
|
|
|
1,787
|
|
|
—
|
|
|
4,440
|
|
|
16,353
|
|
|
28,455
|
|
|||||||
Construction and other consumer real estate
|
5
|
|
|
926
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,034
|
|
|
1,965
|
|
|||||||
Bankcard and other revolving plans
|
—
|
|
|
260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
260
|
|
|||||||
Total consumer loans
|
4,460
|
|
|
2,606
|
|
|
3,362
|
|
|
—
|
|
|
4,662
|
|
|
17,517
|
|
|
32,607
|
|
|||||||
Total nonaccruing
|
24,467
|
|
|
14,785
|
|
|
4,504
|
|
|
6,030
|
|
|
23,122
|
|
|
93,665
|
|
|
166,573
|
|
|||||||
Total
|
$
|
87,012
|
|
|
$
|
58,808
|
|
|
$
|
27,612
|
|
|
$
|
23,380
|
|
|
$
|
83,785
|
|
|
$
|
270,769
|
|
|
$
|
551,366
|
|
|
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
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
(107
|
)
|
|
$
|
(134
|
)
|
|
$
|
(308
|
)
|
|
$
|
(157
|
)
|
Owner occupied
|
(1,061
|
)
|
|
(309
|
)
|
|
(3,158
|
)
|
|
(1,012
|
)
|
||||
Total commercial
|
(1,168
|
)
|
|
(443
|
)
|
|
(3,466
|
)
|
|
(1,169
|
)
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
(237
|
)
|
|
(273
|
)
|
|
(755
|
)
|
|
(742
|
)
|
||||
Term
|
(2,134
|
)
|
|
(1,443
|
)
|
|
(7,285
|
)
|
|
(4,469
|
)
|
||||
Total commercial real estate
|
(2,371
|
)
|
|
(1,716
|
)
|
|
(8,040
|
)
|
|
(5,211
|
)
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
(24
|
)
|
|
(18
|
)
|
|
(97
|
)
|
|
(51
|
)
|
||||
1-4 family residential
|
(3,700
|
)
|
|
(4,204
|
)
|
|
(11,313
|
)
|
|
(12,045
|
)
|
||||
Construction and other consumer real estate
|
(106
|
)
|
|
(230
|
)
|
|
(324
|
)
|
|
(445
|
)
|
||||
Total consumer loans
|
(3,830
|
)
|
|
(4,452
|
)
|
|
(11,734
|
)
|
|
(12,541
|
)
|
||||
Total decrease to interest income
1
|
$
|
(7,369
|
)
|
|
$
|
(6,611
|
)
|
|
$
|
(23,240
|
)
|
|
$
|
(18,921
|
)
|
|
Three Months Ended
September 30, 2013 |
|
Nine Months Ended
September 30, 2013 |
||||||||||||||||||||
(In thousands)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
660
|
|
|
$
|
660
|
|
|
$
|
—
|
|
|
$
|
660
|
|
|
$
|
660
|
|
Owner occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
511
|
|
|
511
|
|
||||||
Total commercial
|
—
|
|
|
660
|
|
|
660
|
|
|
—
|
|
|
1,171
|
|
|
1,171
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Term
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
—
|
|
|
222
|
|
|
222
|
|
|
—
|
|
|
307
|
|
|
307
|
|
||||||
1-4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,372
|
|
|
1,372
|
|
||||||
Total consumer loans
|
—
|
|
|
222
|
|
|
222
|
|
|
—
|
|
|
1,679
|
|
|
1,679
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
882
|
|
|
$
|
882
|
|
|
$
|
—
|
|
|
$
|
2,850
|
|
|
$
|
2,850
|
|
|
Three Months Ended
September 30, 2012 |
|
Nine Months Ended
September 30, 2012 |
||||||||||||||||||||
(In thousands)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
107
|
|
|
$
|
107
|
|
|
$
|
—
|
|
|
$
|
1,441
|
|
|
$
|
1,441
|
|
Owner occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,405
|
|
|
5,405
|
|
||||||
Total commercial
|
—
|
|
|
107
|
|
|
107
|
|
|
—
|
|
|
6,846
|
|
|
6,846
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
—
|
|
|
2,229
|
|
|
2,229
|
|
|
—
|
|
|
2,525
|
|
|
2,525
|
|
||||||
Term
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial real estate
|
—
|
|
|
2,229
|
|
|
2,229
|
|
|
—
|
|
|
2,525
|
|
|
2,525
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
||||||
1-4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,089
|
|
|
1,089
|
|
||||||
Total consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,089
|
|
|
1,089
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
2,336
|
|
|
$
|
2,336
|
|
|
$
|
—
|
|
|
$
|
10,460
|
|
|
$
|
10,460
|
|
(In thousands)
|
September 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Commercial
|
$
|
164,760
|
|
|
$
|
227,414
|
|
Commercial real estate
|
254,507
|
|
|
382,068
|
|
||
Consumer
|
31,675
|
|
|
41,398
|
|
||
Outstanding balance
|
$
|
450,942
|
|
|
$
|
650,880
|
|
|
|
|
|
||||
Carrying amount
|
$
|
334,473
|
|
|
$
|
472,040
|
|
ALLL
|
5,077
|
|
|
12,077
|
|
||
Carrying amount, net
|
$
|
329,396
|
|
|
$
|
459,963
|
|
(In thousands)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
104,483
|
|
|
$
|
157,040
|
|
|
$
|
134,461
|
|
|
$
|
184,679
|
|
Accretion
|
(19,941
|
)
|
|
(25,409
|
)
|
|
(78,994
|
)
|
|
(69,824
|
)
|
||||
Reclassification from nonaccretable difference
|
7,908
|
|
|
9,565
|
|
|
31,092
|
|
|
25,112
|
|
||||
Disposals and other
|
3,308
|
|
|
3,550
|
|
|
9,199
|
|
|
4,779
|
|
||||
Balance at end of period
|
$
|
95,758
|
|
|
$
|
144,746
|
|
|
$
|
95,758
|
|
|
$
|
144,746
|
|
(In thousands)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|||||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
51,297
|
|
|
$
|
117,167
|
|
|
$
|
90,929
|
|
|
$
|
133,810
|
|
Amounts filed with the FDIC and collected or in process
1
|
5,507
|
|
|
3,904
|
|
|
15,267
|
|
|
15,106
|
|
||||
Net change in asset balance due to reestimation of projected cash flows
2
|
(15,033
|
)
|
|
(20,165
|
)
|
|
(64,425
|
)
|
|
(48,010
|
)
|
||||
Balance at end of period
|
$
|
41,771
|
|
|
$
|
100,906
|
|
|
$
|
41,771
|
|
|
$
|
100,906
|
|
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
|
|
September 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
|
$
|
75,000
|
|
|
$
|
411
|
|
|
$
|
—
|
|
|
$
|
150,000
|
|
|
$
|
1,188
|
|
|
$
|
—
|
|
Total derivatives designated as hedging instruments
|
75,000
|
|
|
411
|
|
|
—
|
|
|
150,000
|
|
|
1,188
|
|
|
—
|
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
65,850
|
|
|
517
|
|
|
565
|
|
|
98,524
|
|
|
1,043
|
|
|
1,047
|
|
||||||
Interest rate swaps for customers
2
|
2,728,601
|
|
|
54,640
|
|
|
55,110
|
|
|
2,607,603
|
|
|
79,579
|
|
|
82,926
|
|
||||||
Total return swap
|
1,159,686
|
|
|
—
|
|
|
4,239
|
|
|
1,159,686
|
|
|
—
|
|
|
5,127
|
|
||||||
Total derivatives not designated as hedging instruments
|
3,954,137
|
|
|
55,157
|
|
|
59,914
|
|
|
3,865,813
|
|
|
80,622
|
|
|
89,100
|
|
||||||
Total derivatives
|
$
|
4,029,137
|
|
|
$
|
55,568
|
|
|
$
|
59,914
|
|
|
$
|
4,015,813
|
|
|
$
|
81,810
|
|
|
$
|
89,100
|
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 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
|
$
|
414
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
|
|
$
|
408
|
|
|
$
|
2,479
|
|
|
$
|
—
|
|
|
|
||||
|
414
|
|
|
97
|
|
|
—
|
|
|
|
|
408
|
|
|
2,479
|
|
|
—
|
|
|
|
||||||||||
Liability derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Terminated swaps on long-term debt
|
|
|
|
|
|
|
$
|
796
|
|
|
|
|
|
|
|
|
$
|
2,342
|
|
||||||||||||
Total derivatives designated as hedging instruments
|
414
|
|
|
97
|
|
|
—
|
|
|
796
|
|
|
408
|
|
|
2,479
|
|
|
—
|
|
|
2,342
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
|
|
|
|
765
|
|
|
|
|
|
|
|
|
678
|
|
|
|
||||||||||||||
Interest rate swaps for customers
2
|
|
|
|
|
883
|
|
|
|
|
|
|
|
|
6,631
|
|
|
|
||||||||||||||
Futures contracts
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
||||||||||||||
Total return swap
|
|
|
|
|
(5,342
|
)
|
|
|
|
|
|
|
|
(16,350
|
)
|
|
|
||||||||||||||
Total derivatives not designated as hedging instruments
|
|
|
|
|
(3,692
|
)
|
|
|
|
|
|
|
|
(9,039
|
)
|
|
|
||||||||||||||
Total derivatives
|
$
|
414
|
|
|
$
|
97
|
|
|
$
|
(3,692
|
)
|
|
$
|
796
|
|
|
$
|
408
|
|
|
$
|
2,479
|
|
|
$
|
(9,039
|
)
|
|
$
|
2,342
|
|
|
Three Months Ended September 30, 2012
|
|
Nine Months Ended September 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
|
$
|
84
|
|
|
$
|
2,378
|
|
|
$
|
—
|
|
|
|
|
$
|
390
|
|
|
$
|
10,871
|
|
|
$
|
—
|
|
|
|
||||
|
84
|
|
|
2,378
|
|
|
—
|
|
|
|
|
390
|
|
|
10,871
|
|
|
—
|
|
|
|
||||||||||
Liability derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Terminated swaps on long-term debt
|
|
|
|
|
|
|
$
|
771
|
|
|
|
|
|
|
|
|
2,277
|
|
|||||||||||||
Total derivatives designated as hedging instruments
|
84
|
|
|
2,378
|
|
|
—
|
|
|
771
|
|
|
390
|
|
|
10,871
|
|
|
—
|
|
|
2,277
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
|
|
|
|
(174
|
)
|
|
|
|
|
|
|
|
(302
|
)
|
|
|
||||||||||||||
Interest rate swaps for customers
2
|
|
|
|
|
1,331
|
|
|
|
|
|
|
|
|
1,917
|
|
|
|
||||||||||||||
Basis swaps
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
18
|
|
|
|
||||||||||||||
Futures contracts
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
(12
|
)
|
|
|
||||||||||||||
Total return swap
|
|
|
|
|
(5,403
|
)
|
|
|
|
|
|
|
|
(16,303
|
)
|
|
|
||||||||||||||
Total derivatives not designated as hedging instruments
|
|
|
|
|
(4,248
|
)
|
|
|
|
|
|
|
|
(14,682
|
)
|
|
|
||||||||||||||
Total derivatives
|
$
|
84
|
|
|
$
|
2,378
|
|
|
$
|
(4,248
|
)
|
|
$
|
771
|
|
|
$
|
390
|
|
|
$
|
10,871
|
|
|
$
|
(14,682
|
)
|
|
$
|
2,277
|
|
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 J,
$195 million
(
195,152
shares), fixed/floating rate issued August 11, 2013; dividends payable semiannually at
7.20%
on the 15th day of March and September commencing March 15, 2014 to the earliest possible redemption date of September 15, 2023, interest rate then resets to an annual floating rate equal to three-month LIBOR plus
4.44%
.
|
2.
|
Series A,
$6 million
(
5,907
shares), floating rate reopened August 2, 2013; dividends payable quarterly at the greater of three-month LIBOR plus
0.52%
, or
4.0%
.
|
3.
|
Series I,
$301 million
(
300,893
shares), 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.
|
4.
|
Series H,
$126 million
(
126,221
shares), 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.
|
5.
|
Series G,
$172 million
(
171,827
shares), 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
|
||||||||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2012
|
|
|
$
|
(397,616
|
)
|
|
|
|
$
|
1,794
|
|
|
|
$
|
(50,335
|
)
|
|
$
|
(446,157
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications, net of tax
|
|
|
48,992
|
|
|
|
|
236
|
|
|
|
—
|
|
|
49,228
|
|
||||
Amounts reclassified from AOCI, net of tax
|
|
|
13,909
|
|
|
|
|
(1,483
|
)
|
|
|
—
|
|
|
12,426
|
|
||||
Other comprehensive income (loss)
|
|
|
62,901
|
|
|
|
|
(1,247
|
)
|
|
|
—
|
|
|
61,654
|
|
||||
Balance at September 30, 2013
|
|
|
$
|
(334,715
|
)
|
|
|
|
$
|
547
|
|
|
|
$
|
(50,335
|
)
|
|
$
|
(384,503
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2011
|
|
|
$
|
(546,763
|
)
|
|
|
|
$
|
9,404
|
|
|
|
$
|
(54,725
|
)
|
|
$
|
(592,084
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications, net of tax
|
|
|
56,523
|
|
|
|
|
225
|
|
|
|
—
|
|
|
56,748
|
|
||||
Amounts reclassified from AOCI, net of tax
|
|
|
7,152
|
|
|
|
|
(6,554
|
)
|
|
|
—
|
|
|
598
|
|
||||
Other comprehensive income (loss)
|
|
|
63,675
|
|
|
|
|
(6,329
|
)
|
|
|
—
|
|
|
57,346
|
|
||||
Balance at September 30, 2012
|
|
|
$
|
(483,088
|
)
|
|
|
|
$
|
3,075
|
|
|
|
$
|
(54,725
|
)
|
|
$
|
(534,738
|
)
|
|
|
Amounts reclassified from AOCI
1
|
|
Statement of income (SI) Balance sheet
(BS)
|
|
|
||||||||||||||
(In thousands)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|||||||||||||
Details about AOCI components
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
Affected line item
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains on investment securities
|
|
$
|
1,580
|
|
|
$
|
3,046
|
|
|
$
|
3,726
|
|
|
$
|
9,285
|
|
|
SI
|
|
Fixed income securities gains, net
|
Income tax expense
|
|
604
|
|
|
1,165
|
|
|
1,425
|
|
|
3,417
|
|
|
|
|
|
||||
|
|
976
|
|
|
1,881
|
|
|
2,301
|
|
|
5,868
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized losses on investment
securities
|
|
(9,067
|
)
|
|
(2,736
|
)
|
|
(22,999
|
)
|
|
(19,912
|
)
|
|
SI
|
|
Net impairment losses on investment securities
|
||||
Income tax benefit
|
|
(3,479
|
)
|
|
(1,046
|
)
|
|
(8,863
|
)
|
|
(7,616
|
)
|
|
|
|
|
||||
|
|
(5,588
|
)
|
|
(1,690
|
)
|
|
(14,136
|
)
|
|
(12,296
|
)
|
|
|
|
|
||||
Accretion of securities with noncredit-related impairment losses not expected to be sold
|
|
(496
|
)
|
|
(315
|
)
|
|
(1,477
|
)
|
|
(1,196
|
)
|
|
BS
|
|
Investment securities, held-to-maturity
|
||||
Deferred income taxes
|
|
(211
|
)
|
|
123
|
|
|
(597
|
)
|
|
472
|
|
|
BS
|
|
Other assets
|
||||
|
|
$
|
(5,319
|
)
|
|
$
|
(1
|
)
|
|
$
|
(13,909
|
)
|
|
$
|
(7,152
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains on derivative instruments
|
|
$
|
97
|
|
|
$
|
2,378
|
|
|
$
|
2,479
|
|
|
$
|
10,871
|
|
|
SI
|
|
Interest and fees on loans
|
Income tax expense
|
|
40
|
|
|
957
|
|
|
996
|
|
|
4,317
|
|
|
|
|
|
||||
|
|
$
|
57
|
|
|
$
|
1,421
|
|
|
$
|
1,483
|
|
|
$
|
6,554
|
|
|
|
|
|
8.
|
INCOME TAXES
|
9.
|
FAIR VALUE
|
(In thousands)
|
September 30, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
38,498
|
|
|
$
|
1,929,039
|
|
|
|
|
$
|
1,967,537
|
|
||
Municipal securities
|
|
|
51,649
|
|
|
$
|
13,520
|
|
|
65,169
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Trust preferred – banks and insurance
|
|
|
|
|
|
1,001,896
|
|
|
1,001,896
|
|
|||||
Trust preferred – real estate investment trusts
|
|
|
|
|
19,517
|
|
|
19,517
|
|
||||||
Auction rate
|
|
|
|
|
6,625
|
|
|
6,625
|
|
||||||
Other (including ABS CDOs)
|
|
|
2,567
|
|
|
13,547
|
|
|
16,114
|
|
|||||
Mutual funds and stock
|
251,382
|
|
|
5,649
|
|
|
|
|
257,031
|
|
|||||
|
289,880
|
|
|
1,988,904
|
|
|
1,055,105
|
|
|
3,333,889
|
|
||||
Trading account
|
|
|
38,278
|
|
|
|
|
38,278
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
464,180
|
|
|
|
|
464,180
|
|
||||||
Private equity
|
|
|
4,992
|
|
|
77,556
|
|
|
82,548
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
1,067
|
|
|
|
|
1,067
|
|
||||||
Interest rate swaps for customers
|
|
|
54,640
|
|
|
|
|
54,640
|
|
||||||
Foreign currency exchange contracts
|
9,887
|
|
|
|
|
|
|
9,887
|
|
||||||
|
9,887
|
|
|
55,707
|
|
|
|
|
65,594
|
|
|||||
|
$
|
299,767
|
|
|
$
|
2,552,061
|
|
|
$
|
1,132,661
|
|
|
$
|
3,984,489
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
21,183
|
|
|
|
|
|
|
|
$
|
21,183
|
|
|||
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
$
|
861
|
|
|
|
|
861
|
|
|||||
Interest rate swaps for customers
|
|
|
55,110
|
|
|
|
|
55,110
|
|
||||||
Foreign currency exchange contracts
|
8,703
|
|
|
|
|
|
|
8,703
|
|
||||||
Total return swap
|
|
|
|
|
$
|
4,239
|
|
|
4,239
|
|
|||||
|
8,703
|
|
|
55,971
|
|
|
4,239
|
|
|
68,913
|
|
||||
Other
|
|
|
|
|
197
|
|
|
197
|
|
||||||
|
$
|
29,886
|
|
|
$
|
55,971
|
|
|
$
|
4,436
|
|
|
$
|
90,293
|
|
(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:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
455,719
|
|
|
|
|
455,719
|
|
||||||
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
|
|
|
$
|
2,336,784
|
|
|
$
|
1,068,123
|
|
|
$
|
3,731,507
|
|
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 September 30, 2013
|
|
Valuation
approach
|
|
Constant default
rate (“CDR”)
|
|
Loss
severity
|
|
Prepayment rate
|
||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||
Trust preferred – predominantly banks
|
$
|
857,021
|
|
|
Income
|
|
Pool specific
3
|
|
100%
|
|
Pool specific
7
|
Trust preferred – predominantly insurance
|
273,420
|
|
|
Income
|
|
Pool specific
4
|
|
100%
|
|
5% per year
|
|
Trust preferred – individual banks
|
23,002
|
|
|
Market
|
|
|
|
|
|
|
|
|
1,153,443
|
|
1
|
|
|
|
|
|
|
|
|
Trust preferred – real estate investment trusts
|
19,518
|
|
|
Income
|
|
Pool specific
5
|
|
60-100%
|
|
0% per year
|
|
Other (including ABS CDOs)
|
25,197
|
|
2
|
Income
|
|
Collateral specific
6
|
|
70-100%
|
|
Collateral weighted
average life
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Three Months Ended September 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 June 30, 2013
|
$
|
13,544
|
|
|
$
|
1,030,293
|
|
|
$
|
18,499
|
|
|
$
|
6,554
|
|
|
$
|
17,324
|
|
|
$
|
75,517
|
|
|
$
|
(4,829
|
)
|
|
$
|
(289
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
10
|
|
|
783
|
|
|
64
|
|
|
1
|
|
|
50
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
306
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,342
|
)
|
|
|
|||||||||||||||
Equity securities gains, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, net
|
2
|
|
|
1,494
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(7,787
|
)
|
|
(1,112
|
)
|
|
|
|
(168
|
)
|
|
|
|
|
|
|
|||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92
|
|
|||||||||||||||
Other comprehensive income
|
64
|
|
|
(3,934
|
)
|
|
2,067
|
|
|
70
|
|
|
(476
|
)
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
2,064
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
(249
|
)
|
|
|
|
|
|||||||||||||||
Redemptions and paydowns
|
(100
|
)
|
|
(18,954
|
)
|
|
|
|
|
|
|
(3,193
|
)
|
|
(82
|
)
|
|
5,932
|
|
|
|
||||||||||
Balance at September 30, 2013
|
$
|
13,520
|
|
|
$
|
1,001,895
|
|
|
$
|
19,518
|
|
|
$
|
6,625
|
|
|
$
|
13,547
|
|
|
$
|
77,556
|
|
|
$
|
(4,239
|
)
|
|
$
|
(197
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Nine Months Ended September 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
|
31
|
|
|
2,395
|
|
|
190
|
|
|
2
|
|
|
64
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
5,455
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(16,350
|
)
|
|
|
|||||||||||||||
Equity securities gains, net
|
|
|
|
|
|
|
|
|
|
|
3,739
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, net
|
38
|
|
|
3,530
|
|
|
|
|
|
|
|
54
|
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(21,548
|
)
|
|
(1,282
|
)
|
|
|
|
(168
|
)
|
|
|
|
|
|
|
|||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(73
|
)
|
|||||||||||||||
Other comprehensive income
|
986
|
|
|
127,028
|
|
|
4,207
|
|
|
108
|
|
|
4,147
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
5,905
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
(7,015
|
)
|
|
|
|
|
|
|
|
(1,369
|
)
|
|
|
|
|
||||||||||||||
Redemptions and paydowns
|
(4,086
|
)
|
|
(51,766
|
)
|
|
|
|
|
|
|
(5,710
|
)
|
|
(397
|
)
|
|
17,238
|
|
|
|
||||||||||
Balance at September 30, 2013
|
$
|
13,520
|
|
|
$
|
1,001,895
|
|
|
$
|
19,518
|
|
|
$
|
6,625
|
|
|
$
|
13,547
|
|
|
$
|
77,556
|
|
|
$
|
(4,239
|
)
|
|
$
|
(197
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Three Months Ended September 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 June 30, 2012
|
$
|
16,360
|
|
|
$
|
926,450
|
|
|
$
|
14,431
|
|
|
$
|
7,166
|
|
|
$
|
40,666
|
|
|
$
|
65,370
|
|
|
$
|
(5,337
|
)
|
|
$
|
(121
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
18
|
|
|
1,239
|
|
|
61
|
|
|
1
|
|
|
53
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
3,562
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,403
|
)
|
|
|
|||||||||||||||
Equity securities losses, net
|
|
|
|
|
|
|
|
|
|
|
2,556
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, net
|
9
|
|
|
3,004
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(2,079
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|||||||||||||||
Other comprehensive income (loss)
|
136
|
|
|
55,962
|
|
|
915
|
|
|
(4
|
)
|
|
2,418
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
2,803
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
(1,126
|
)
|
|
|
|
|
|||||||||||||||
Redemptions and paydowns
|
(200
|
)
|
|
(19,472
|
)
|
|
|
|
(50
|
)
|
|
(2,994
|
)
|
|
(1,271
|
)
|
|
5,692
|
|
|
|
||||||||||
Balance at September 30, 2012
|
$
|
16,323
|
|
|
$
|
965,104
|
|
|
$
|
15,407
|
|
|
$
|
7,113
|
|
|
$
|
40,154
|
|
|
$
|
71,894
|
|
|
$
|
(5,048
|
)
|
|
$
|
(128
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Nine Months Ended September 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
|
|
|
$
|
62,327
|
|
|
$
|
(5,422
|
)
|
|
$
|
(86
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
82
|
|
|
6,267
|
|
|
162
|
|
|
3
|
|
|
213
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
9,167
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(16,303
|
)
|
|
|
|||||||||||||||
Equity securities losses, net
|
|
|
|
|
|
|
|
|
|
|
11,629
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains, (losses), net
|
9
|
|
|
10,780
|
|
|
|
|
4,134
|
|
|
(5,762
|
)
|
|
|
|
|
|
|
||||||||||||
Net impairment losses on investment securities
|
|
|
(19,255
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(42
|
)
|
|||||||||||||||
Other comprehensive income (loss)
|
(499
|
)
|
|
89,695
|
|
|
(3,400
|
)
|
|
1,331
|
|
|
8,301
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
7,687
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
(6,478
|
)
|
|
|
|
|
|||||||||||||||
Redemptions and paydowns
|
(650
|
)
|
|
(51,739
|
)
|
|
|
|
(68,375
|
)
|
|
(6,144
|
)
|
|
(12,438
|
)
|
|
16,677
|
|
|
|
||||||||||
Balance at September 30, 2012
|
$
|
16,323
|
|
|
$
|
965,104
|
|
|
$
|
15,407
|
|
|
$
|
7,113
|
|
|
$
|
40,154
|
|
|
$
|
71,894
|
|
|
$
|
(5,048
|
)
|
|
$
|
(128
|
)
|
(In thousands)
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Dividends and other investment income (loss)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(45
|
)
|
|
$
|
—
|
|
Fixed income securities gains, net
|
1,506
|
|
|
3,024
|
|
|
3,622
|
|
|
9,161
|
|
||||
Equity securities gains, net
|
—
|
|
|
—
|
|
|
—
|
|
|
10,359
|
|
(In thousands)
|
Fair value at September 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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,483
|
|
|
$
|
8,483
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,524
|
|
|
$
|
23,524
|
|
Impaired loans
|
—
|
|
|
4,164
|
|
|
—
|
|
|
4,164
|
|
|
—
|
|
|
3,789
|
|
|
—
|
|
|
3,789
|
|
||||||||
Private equity investments, carried at cost
|
—
|
|
|
—
|
|
|
8,313
|
|
|
8,313
|
|
|
—
|
|
|
—
|
|
|
13,522
|
|
|
13,522
|
|
||||||||
Other real estate owned
|
—
|
|
|
46,700
|
|
|
—
|
|
|
46,700
|
|
|
—
|
|
|
58,954
|
|
|
—
|
|
|
58,954
|
|
||||||||
|
$
|
—
|
|
|
$
|
50,864
|
|
|
$
|
16,796
|
|
|
$
|
67,660
|
|
|
$
|
—
|
|
|
$
|
62,743
|
|
|
$
|
37,046
|
|
|
$
|
99,789
|
|
|
Gains (losses) from fair value changes
|
||||||||||||||
(In thousands)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
HTM securities adjusted for OTTI
|
$
|
—
|
|
|
$
|
(657
|
)
|
|
$
|
(403
|
)
|
|
$
|
(998
|
)
|
Impaired loans
|
(35
|
)
|
|
(818
|
)
|
|
(1,463
|
)
|
|
(3,859
|
)
|
||||
Private equity investments, carried at cost
|
(2,826
|
)
|
|
(93
|
)
|
|
(4,254
|
)
|
|
(1,845
|
)
|
||||
Other real estate owned
|
(1,749
|
)
|
|
(5,499
|
)
|
|
(8,217
|
)
|
|
(14,707
|
)
|
||||
|
$
|
(4,610
|
)
|
|
$
|
(7,067
|
)
|
|
$
|
(14,337
|
)
|
|
$
|
(21,409
|
)
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||
(In thousands)
|
Carrying
value
|
|
Estimated
fair value
|
|
Carrying
value
|
|
Estimated
fair value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
HTM investment securities
|
$
|
777,849
|
|
|
$
|
727,908
|
|
|
$
|
756,909
|
|
|
$
|
674,741
|
|
Loans and leases (including loans held for sale), net of allowance
|
37,590,017
|
|
|
37,402,157
|
|
|
37,020,811
|
|
|
37,024,198
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
2,689,688
|
|
|
2,703,085
|
|
|
2,962,931
|
|
|
2,988,714
|
|
||||
Foreign deposits
|
1,607,409
|
|
|
1,607,052
|
|
|
1,804,060
|
|
|
1,803,625
|
|
||||
Other short-term borrowings
|
—
|
|
|
—
|
|
|
5,409
|
|
|
5,421
|
|
||||
Long-term debt (less fair value hedges)
|
2,298,853
|
|
|
2,529,021
|
|
|
2,329,323
|
|
|
2,636,422
|
|
10.
|
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES
|
(In thousands)
|
September 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Unfunded commitments to extend credit
|
$
|
15,561,565
|
|
|
$
|
14,277,347
|
|
Standby letters of credit:
|
|
|
|
||||
Financial
|
812,493
|
|
|
774,427
|
|
||
Performance
|
179,108
|
|
|
190,029
|
|
||
Commercial letters of credit
|
62,832
|
|
|
91,978
|
|
||
Total unfunded lending commitments
|
$
|
16,615,998
|
|
|
$
|
15,333,781
|
|
•
|
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 (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 September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Service cost
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
27
|
|
Interest cost
|
|
1,721
|
|
|
1,885
|
|
|
101
|
|
|
115
|
|
|
10
|
|
|
12
|
|
|
5,164
|
|
|
5,669
|
|
|
303
|
|
|
345
|
|
|
31
|
|
|
35
|
|
||||||||||||
Expected return on plan assets
|
|
(3,027
|
)
|
|
(2,827
|
)
|
|
|
|
|
|
|
|
|
|
(9,082
|
)
|
|
(8,481
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Amortization of prior service
cost (credit)
|
|
|
|
|
|
31
|
|
|
31
|
|
|
(37
|
)
|
|
(61
|
)
|
|
|
|
|
|
93
|
|
|
93
|
|
|
(113
|
)
|
|
(183
|
)
|
||||||||||||||||
Amortization of net actuarial
(gain) loss
|
|
2,033
|
|
|
2,198
|
|
|
17
|
|
|
(28
|
)
|
|
(19
|
)
|
|
(22
|
)
|
|
6,099
|
|
|
6,889
|
|
|
52
|
|
|
(85
|
)
|
|
(56
|
)
|
|
(65
|
)
|
||||||||||||
Net periodic benefit cost (credit)
|
|
$
|
727
|
|
|
$
|
1,253
|
|
|
$
|
149
|
|
|
$
|
118
|
|
|
$
|
(38
|
)
|
|
$
|
(62
|
)
|
|
$
|
2,181
|
|
|
$
|
4,099
|
|
|
$
|
448
|
|
|
$
|
353
|
|
|
$
|
(114
|
)
|
|
$
|
(186
|
)
|
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
|
FAMC
|
Federal Agricultural Mortgage Corporation, or “Farmer Mac”
|
ACL
|
Allowance for Credit Losses
|
FASB
|
Financial Accounting Standards Board
|
AFS
|
Available-for-Sale
|
FDIC
|
Federal Deposit Insurance Corporation
|
ALCO
|
Asset/Liability Committee
|
FHLB
|
Federal Home Loan Bank
|
ALLL
|
Allowance for Loan and Lease Losses
|
FICO
|
Fair Isaac Corporation
|
Amegy
|
Amegy Corporation
|
FRB
|
Federal Reserve Board
|
AOCI
|
Accumulated Other Comprehensive Income
|
GAAP
|
Generally Accepted Accounting Principles
|
ASC
|
Accounting Standards Codification
|
GNMA
|
Government National Mortgage Association
|
ASU
|
Accounting Standards Update
|
HECL
|
Home Equity Credit Line
|
ATM
|
Automated Teller Machine
|
HTM
|
Held-to-Maturity
|
BCF
|
Beneficial Conversion Feature
|
IA
|
Indemnification Asset
|
bps
|
basis points
|
IFRS
|
International Financial Reporting Standards
|
CB&T
|
California Bank & Trust
|
ISDA
|
International Swap Dealer Association
|
CCAR
|
Comprehensive Capital Analysis and Review
|
LGD
|
Loss Given Default
|
CDO
|
Collateralized Debt Obligation
|
LIBOR
|
London Interbank Offered Rate
|
CDR
|
Constant Default Rate
|
Lockhart
|
Lockhart Funding LLC
|
CET1
|
Common Equity Tier 1
|
MRMG
|
Model Risk Management Group
|
CFPB
|
Consumer Financial Protection Bureau
|
MVE
|
Market Value of Equity
|
CLTV
|
Combined Loan-to-Value Ratio
|
NBAZ
|
National Bank of Arizona
|
CPR
|
Constant Prepayment Rate
|
NRSRO
|
Nationally Recognized Statistical Rating Organization
|
CRE
|
Commercial Real Estate
|
NSB
|
Nevada State Bank
|
CSV
|
Cash Surrender Value
|
OCC
|
Office of the Comptroller of the Currency
|
DB
|
Deutsche Bank AG
|
OCI
|
Other Comprehensive Income
|
DBRS
|
Dominion Bond Rating Service
|
OREO
|
Other Real Estate Owned
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
OTC
|
Over-the-Counter
|
DTA
|
Deferred Tax Asset
|
OTTI
|
Other-Than-Temporary Impairment
|
DTL
|
Deferred Tax Liability
|
Parent
|
Zions Bancorporation
|
PCI
|
Purchased Credit Impaired
|
TAG
|
Transaction Account Guarantee
|
PD
|
Probability of Default
|
TARP
|
Troubled Asset Relief Program
|
PIK
|
Payment in Kind
|
TCBO
|
The Commerce Bank of Oregon
|
REIT
|
Real Estate Investment Trust
|
TCBW
|
The Commerce Bank of Washington
|
RULC
|
Reserve for Unfunded Lending Commitments
|
TDR
|
Troubled Debt Restructuring
|
SBA
|
Small Business Administration
|
TRS
|
Total Return Swap
|
SBIC
|
Small Business Investment Company
|
Vectra
|
Vectra Bank Colorado
|
SEC
|
Securities and Exchange Commission
|
Zions Bank
|
Zions First National Bank
|
SOC
|
Securitization Oversight Committee
|
ZMSC
|
Zions Management Services Company
|
•
|
$125.7 million increase in preferred stock redemption;
|
•
|
$22.2 million decrease in the provision for unfunded lending commitments;
|
•
|
$20.0 million reduction in preferred stock dividends;
|
•
|
$13.0 million decline in total interest expense; and
|
•
|
$6.1 million decrease in credit-related expense.
|
•
|
$35.6 million decline in total interest income;
|
•
|
$9.0 million increase in salaries and employee benefits;
|
•
|
$6.3 million increase in net impairment losses on investment securities;
|
•
|
$3.7 million increase in professional and legal services; and
|
•
|
$2.2 million decrease in loan sales and servicing income.
|
•
|
$125.7 million increase in preferred stock redemption;
|
•
|
$81.2 million reduction in the provision for loan losses;
|
•
|
$70.7 million decline in preferred stock dividends;
|
•
|
$51.4 million decrease in total interest expense; and
|
•
|
$26.1 million reduction in the provision for unfunded lending commitments.
|
•
|
$89.1 million decline in total interest income;
|
•
|
$40.3 million increase in debt extinguishment cost;
|
•
|
$22.5 million increase in other noninterest expense;
|
•
|
$20.7 million increase in salaries and employee benefits; and
|
•
|
$7.3 million increase in professional and legal services.
|
•
|
the fair value discount on the debt; and
|
•
|
the intrinsic value of the beneficial conversion feature which added the right of the debt holder to convert the debt into preferred stock.
|
•
|
lower yields on loans excluding FDIC-supported loans, and AFS investment securities; and
|
•
|
increased balance of low-yielding money market investments.
|
•
|
lower yields on long-term debt and deposit funding; and
|
•
|
higher yields on FDIC-supported loans.
|
|
|
Three Months Ended
September 30, 2013
|
|
Three Months Ended
September 30, 2012
|
||||||||||||||||||
(In thousands)
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
|
$
|
9,454,131
|
|
|
$
|
6,175
|
|
|
0.26
|
%
|
|
$
|
7,990,243
|
|
|
$
|
5,349
|
|
|
0.27
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
|
778,268
|
|
|
9,283
|
|
|
4.73
|
%
|
|
758,761
|
|
|
10,138
|
|
|
5.32
|
%
|
||||
Available-for-sale
|
|
3,071,039
|
|
|
17,182
|
|
|
2.22
|
%
|
|
3,052,559
|
|
|
22,507
|
|
|
2.93
|
%
|
||||
Trading account
|
|
25,959
|
|
|
210
|
|
|
3.21
|
%
|
|
13,691
|
|
|
110
|
|
|
3.20
|
%
|
||||
Total securities
|
|
3,875,266
|
|
|
26,675
|
|
|
2.73
|
%
|
|
3,825,011
|
|
|
32,755
|
|
|
3.41
|
%
|
||||
Loans held for sale
|
|
131,652
|
|
|
1,228
|
|
|
3.70
|
%
|
|
183,224
|
|
|
1,621
|
|
|
3.52
|
%
|
||||
Loans
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
|
37,818,273
|
|
|
422,085
|
|
|
4.43
|
%
|
|
36,585,753
|
|
|
447,061
|
|
|
4.86
|
%
|
||||
FDIC-supported loans
|
|
405,316
|
|
|
20,959
|
|
|
20.52
|
%
|
|
613,710
|
|
|
26,648
|
|
|
17.27
|
%
|
||||
Total loans
|
|
38,223,589
|
|
|
443,044
|
|
|
4.60
|
%
|
|
37,199,463
|
|
|
473,709
|
|
|
5.07
|
%
|
||||
Total interest-earning assets
|
|
51,684,638
|
|
|
477,122
|
|
|
3.66
|
%
|
|
49,197,941
|
|
|
513,434
|
|
|
4.15
|
%
|
||||
Cash and due from banks
|
|
976,159
|
|
|
|
|
|
|
1,000,159
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(810,290
|
)
|
|
|
|
|
|
(964,676
|
)
|
|
|
|
|
||||||||
Goodwill
|
|
1,014,129
|
|
|
|
|
|
|
1,015,129
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
|
41,751
|
|
|
|
|
|
|
57,345
|
|
|
|
|
|
||||||||
Other assets
|
|
2,608,252
|
|
|
|
|
|
|
3,060,914
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
55,514,639
|
|
|
|
|
|
|
$
|
53,366,812
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
|
$
|
22,982,998
|
|
|
9,811
|
|
|
0.17
|
%
|
|
$
|
22,025,891
|
|
|
12,503
|
|
|
0.23
|
%
|
||
Time
|
|
2,749,985
|
|
|
3,856
|
|
|
0.56
|
%
|
|
3,162,165
|
|
|
5,484
|
|
|
0.69
|
%
|
||||
Foreign
|
|
1,675,256
|
|
|
839
|
|
|
0.20
|
%
|
|
1,472,437
|
|
|
1,062
|
|
|
0.29
|
%
|
||||
Total interest-bearing deposits
|
27,408,239
|
|
|
14,506
|
|
|
0.21
|
%
|
|
26,660,493
|
|
|
19,049
|
|
|
0.28
|
%
|
|||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold, not yet purchased
|
|
2,853
|
|
|
—
|
|
|
—
|
%
|
|
2,062
|
|
|
—
|
|
|
—
|
%
|
||||
Federal funds purchased and security repurchase agreements
|
|
257,891
|
|
|
71
|
|
|
0.11
|
%
|
|
453,209
|
|
|
157
|
|
|
0.14
|
%
|
||||
Other short-term borrowings
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
8,273
|
|
|
36
|
|
|
1.73
|
%
|
||||
Long-term debt
|
|
2,198,752
|
|
|
43,309
|
|
|
7.81
|
%
|
|
2,297,409
|
|
|
51,597
|
|
|
8.93
|
%
|
||||
Total borrowed funds
|
|
2,459,496
|
|
|
43,380
|
|
|
7.00
|
%
|
|
2,760,953
|
|
|
51,790
|
|
|
7.46
|
%
|
||||
Total interest-bearing liabilities
|
|
29,867,735
|
|
|
57,886
|
|
|
0.77
|
%
|
|
29,421,446
|
|
|
70,839
|
|
|
0.96
|
%
|
||||
Noninterest-bearing deposits
|
|
18,179,584
|
|
|
|
|
|
|
16,817,085
|
|
|
|
|
|
||||||||
Other liabilities
|
|
591,735
|
|
|
|
|
|
|
606,973
|
|
|
|
|
|
||||||||
Total liabilities
|
|
48,639,054
|
|
|
|
|
|
|
46,845,504
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
1,685,512
|
|
|
|
|
|
|
1,765,162
|
|
|
|
|
|
||||||||
Common equity
|
|
5,190,073
|
|
|
|
|
|
|
4,758,858
|
|
|
|
|
|
||||||||
Controlling interest shareholders’ equity
|
6,875,585
|
|
|
|
|
|
|
6,524,020
|
|
|
|
|
|
|||||||||
Noncontrolling interests
|
|
|
|
|
|
|
|
(2,712
|
)
|
|
|
|
|
|||||||||
Total shareholders’ equity
|
|
6,875,585
|
|
|
|
|
|
|
6,521,308
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
55,514,639
|
|
|
|
|
|
|
$
|
53,366,812
|
|
|
|
|
|
|||||||
Spread on average interest-bearing funds
|
|
|
|
|
2.89
|
%
|
|
|
|
|
|
3.19
|
%
|
|||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
419,236
|
|
|
3.22
|
%
|
|
|
|
$
|
442,595
|
|
|
3.58
|
%
|
|
|
Nine Months Ended
September 30, 2013
|
|
Nine Months Ended
September 30, 2012
|
||||||||||||||||||
(In thousands)
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
|
$
|
8,744,361
|
|
|
$
|
17,378
|
|
|
0.27
|
%
|
|
$
|
7,687,336
|
|
|
$
|
15,076
|
|
|
0.26
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
|
758,694
|
|
|
28,191
|
|
|
4.97
|
%
|
|
785,351
|
|
|
32,476
|
|
|
5.52
|
%
|
||||
Available-for-sale
|
|
3,065,977
|
|
|
54,487
|
|
|
2.38
|
%
|
|
3,076,963
|
|
|
71,814
|
|
|
3.12
|
%
|
||||
Trading account
|
|
28,304
|
|
|
687
|
|
|
3.25
|
%
|
|
24,546
|
|
|
596
|
|
|
3.24
|
%
|
||||
Total securities
|
|
3,852,975
|
|
|
83,365
|
|
|
2.89
|
%
|
|
3,886,860
|
|
|
104,886
|
|
|
3.60
|
%
|
||||
Loans held for sale
|
|
158,920
|
|
|
4,216
|
|
|
3.55
|
%
|
|
171,853
|
|
|
4,684
|
|
|
3.64
|
%
|
||||
Loans
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases
|
|
37,481,302
|
|
|
1,275,652
|
|
|
4.55
|
%
|
|
36,304,366
|
|
|
1,355,115
|
|
|
4.99
|
%
|
||||
FDIC-supported loans
|
|
451,931
|
|
|
82,551
|
|
|
24.42
|
%
|
|
662,549
|
|
|
74,623
|
|
|
15.04
|
%
|
||||
Total loans
|
|
37,933,233
|
|
|
1,358,203
|
|
|
4.79
|
%
|
|
36,966,915
|
|
|
1,429,738
|
|
|
5.17
|
%
|
||||
Total interest-earning assets
|
|
50,689,489
|
|
|
1,463,162
|
|
|
3.86
|
%
|
|
48,712,964
|
|
|
1,554,384
|
|
|
4.26
|
%
|
||||
Cash and due from banks
|
|
1,012,912
|
|
|
|
|
|
|
1,049,426
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(843,830
|
)
|
|
|
|
|
|
(1,006,423
|
)
|
|
|
|
|
||||||||
Goodwill
|
|
1,014,129
|
|
|
|
|
|
|
1,015,129
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
|
45,334
|
|
|
|
|
|
|
61,549
|
|
|
|
|
|
||||||||
Other assets
|
|
2,767,719
|
|
|
|
|
|
|
3,114,532
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
54,685,753
|
|
|
|
|
|
|
$
|
52,947,177
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
|
$
|
22,864,006
|
|
|
30,367
|
|
|
0.18
|
%
|
|
$
|
21,962,158
|
|
|
41,333
|
|
|
0.25
|
%
|
||
Time
|
|
2,841,862
|
|
|
12,510
|
|
|
0.59
|
%
|
|
3,265,070
|
|
|
18,177
|
|
|
0.74
|
%
|
||||
Foreign
|
|
1,615,971
|
|
|
2,414
|
|
|
0.20
|
%
|
|
1,457,236
|
|
|
3,775
|
|
|
0.35
|
%
|
||||
Total interest-bearing deposits
|
27,321,839
|
|
|
45,291
|
|
|
0.22
|
%
|
|
26,684,464
|
|
|
63,285
|
|
|
0.32
|
%
|
|||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities sold, not yet purchased
|
|
2,483
|
|
|
—
|
|
|
—
|
%
|
|
10,286
|
|
|
220
|
|
|
2.86
|
%
|
||||
Federal funds purchased and security repurchase agreements
|
|
277,049
|
|
|
222
|
|
|
0.11
|
%
|
|
485,182
|
|
|
472
|
|
|
0.13
|
%
|
||||
Other short-term borrowings
|
|
1,265
|
|
|
19
|
|
|
2.01
|
%
|
|
23,264
|
|
|
536
|
|
|
3.08
|
%
|
||||
Long-term debt
|
|
2,247,608
|
|
|
141,563
|
|
|
8.42
|
%
|
|
2,206,597
|
|
|
173,969
|
|
|
10.53
|
%
|
||||
Total borrowed funds
|
|
2,528,405
|
|
|
141,804
|
|
|
7.50
|
%
|
|
2,725,329
|
|
|
175,197
|
|
|
8.59
|
%
|
||||
Total interest-bearing liabilities
|
|
29,850,244
|
|
|
187,095
|
|
|
0.84
|
%
|
|
29,409,793
|
|
|
238,482
|
|
|
1.08
|
%
|
||||
Noninterest-bearing deposits
|
|
17,676,886
|
|
|
|
|
|
|
16,247,937
|
|
|
|
|
|
||||||||
Other liabilities
|
|
586,327
|
|
|
|
|
|
|
602,997
|
|
|
|
|
|
||||||||
Total liabilities
|
|
48,113,457
|
|
|
|
|
|
|
46,260,727
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
1,479,684
|
|
|
|
|
|
|
1,983,054
|
|
|
|
|
|
||||||||
Common equity
|
|
5,094,889
|
|
|
|
|
|
|
4,705,827
|
|
|
|
|
|
||||||||
Controlling interest shareholders’ equity
|
6,574,573
|
|
|
|
|
|
|
6,688,881
|
|
|
|
|
|
|||||||||
Noncontrolling interests
|
|
(2,277
|
)
|
|
|
|
|
|
(2,431
|
)
|
|
|
|
|
||||||||
Total shareholders’ equity
|
|
6,572,296
|
|
|
|
|
|
|
6,686,450
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
54,685,753
|
|
|
|
|
|
|
$
|
52,947,177
|
|
|
|
|
|
|||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.02
|
%
|
|
|
|
|
|
3.18
|
%
|
|||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
1,276,067
|
|
|
3.37
|
%
|
|
|
|
$
|
1,315,902
|
|
|
3.61
|
%
|
|
|
September 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
|
|
$
|
558
|
|
|
$
|
558
|
|
|
$
|
565
|
|
|
$
|
525
|
|
|
$
|
525
|
|
|
$
|
537
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
255
|
|
|
201
|
|
|
151
|
|
|
255
|
|
|
213
|
|
|
126
|
|
|||||||
Other
|
|
21
|
|
|
19
|
|
|
12
|
|
|
22
|
|
|
19
|
|
|
12
|
|
||||||
|
|
834
|
|
|
778
|
|
|
728
|
|
|
802
|
|
|
757
|
|
|
675
|
|
||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
40
|
|
|
40
|
|
|
40
|
|
|
104
|
|
|
105
|
|
|
105
|
|
|||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
|
440
|
|
|
442
|
|
|
442
|
|
|
109
|
|
|
113
|
|
|
113
|
|
||||||
Agency guaranteed mortgage-backed securities
|
309
|
|
|
320
|
|
|
320
|
|
|
407
|
|
|
425
|
|
|
425
|
|
|||||||
Small Business Administration loan-backed securities
|
|
1,139
|
|
|
1,165
|
|
|
1,165
|
|
|
1,124
|
|
|
1,153
|
|
|
1,153
|
|
||||||
Municipal securities
|
|
65
|
|
|
65
|
|
|
65
|
|
|
75
|
|
|
76
|
|
|
76
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
1,522
|
|
|
1,002
|
|
|
1,002
|
|
|
1,596
|
|
|
949
|
|
|
949
|
|
|||||||
Trust preferred securities – real estate
investment trusts
|
39
|
|
|
20
|
|
|
20
|
|
|
41
|
|
|
16
|
|
|
16
|
|
|||||||
Auction rate securities
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
||||||
Other
|
|
18
|
|
|
16
|
|
|
16
|
|
|
26
|
|
|
19
|
|
|
19
|
|
||||||
|
|
3,579
|
|
|
3,077
|
|
|
3,077
|
|
|
3,489
|
|
|
2,863
|
|
|
2,863
|
|
||||||
Mutual funds and other
|
|
263
|
|
|
257
|
|
|
257
|
|
|
228
|
|
|
228
|
|
|
228
|
|
||||||
|
|
3,842
|
|
|
3,334
|
|
|
3,334
|
|
|
3,717
|
|
|
3,091
|
|
|
3,091
|
|
||||||
Total
|
|
$
|
4,676
|
|
|
$
|
4,112
|
|
|
$
|
4,062
|
|
|
$
|
4,519
|
|
|
$
|
3,848
|
|
|
$
|
3,766
|
|
|
|
September 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
|
|
September 30,
2013 |
|
June 30,
2013 |
|
Change
|
|||||||||||||||||||||
Performing CDOs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Predominantly bank CDOs
|
25
|
|
|
$
|
745
|
|
|
$
|
670
|
|
|
$
|
532
|
|
|
|
$
|
(138
|
)
|
|
|
|
5.8%
|
|
|
71%
|
|
71%
|
|
—%
|
|||
Insurance-only CDOs
|
|
22
|
|
|
437
|
|
|
434
|
|
|
327
|
|
|
|
(107
|
)
|
|
|
|
8.0%
|
|
|
75%
|
|
75%
|
|
—%
|
||||||
Other CDOs
|
|
4
|
|
|
44
|
|
|
34
|
|
|
33
|
|
|
|
(1
|
)
|
|
|
|
10.5%
|
|
|
75%
|
|
73%
|
|
2%
|
||||||
Total performing CDOs
|
|
51
|
|
|
1,226
|
|
|
1,138
|
|
|
892
|
|
|
|
(246
|
)
|
|
|
|
6.8%
|
|
|
73%
|
|
73%
|
|
—%
|
||||||
Nonperforming CDOs
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Credit impairment prior to last 12 months
|
|
13
|
|
|
233
|
|
|
172
|
|
|
98
|
|
|
|
(74
|
)
|
|
|
|
10.1%
|
|
|
42%
|
|
40%
|
|
2%
|
||||||
Credit impairment during last 12 months
|
|
46
|
|
|
891
|
|
|
519
|
|
|
242
|
|
|
|
(277
|
)
|
|
|
|
9.6%
|
|
|
27%
|
|
29%
|
|
(2)%
|
||||||
Total nonperforming CDOs
|
59
|
|
|
1,124
|
|
|
691
|
|
|
340
|
|
|
|
(351
|
)
|
|
|
|
9.7%
|
|
|
30%
|
|
31%
|
|
(1)%
|
|||||||
Total CDOs
|
|
110
|
|
|
$
|
2,350
|
|
|
$
|
1,829
|
|
|
$
|
1,232
|
|
|
|
$
|
(597
|
)
|
|
|
|
8.2%
|
|
|
52%
|
|
53%
|
|
(1)%
|
||
|
|
June 30, 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
|
25
|
|
|
$
|
753
|
|
|
$
|
677
|
|
|
$
|
537
|
|
|
|
$
|
(140
|
)
|
|
|
|
5.7%
|
|
|
71%
|
|
|
|
|
|||
Insurance-only CDOs
|
|
22
|
|
|
446
|
|
|
442
|
|
|
335
|
|
|
|
(107
|
)
|
|
|
|
7.9%
|
|
|
75%
|
|
|
|
|
||||||
Other CDOs
|
|
6
|
|
|
51
|
|
|
40
|
|
|
37
|
|
|
|
(3
|
)
|
|
|
|
9.7%
|
|
|
73%
|
|
|
|
|
||||||
Total performing CDOs
|
|
53
|
|
|
1,250
|
|
|
1,159
|
|
|
909
|
|
|
|
(250
|
)
|
|
|
|
6.7%
|
|
|
73%
|
|
|
|
|
||||||
Nonperforming CDOs
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Credit impairment prior to last 12 months
|
|
14
|
|
|
272
|
|
|
197
|
|
|
108
|
|
|
|
(89
|
)
|
|
|
|
10.1
|
%
|
|
|
40
|
%
|
|
|
|
|
||||
Credit impairment during last 12 months
|
|
44
|
|
|
849
|
|
|
501
|
|
|
245
|
|
|
|
(256
|
)
|
|
|
|
9.5
|
%
|
|
|
29
|
%
|
|
|
|
|
||||
Total nonperforming CDOs
|
58
|
|
|
1,121
|
|
|
698
|
|
|
353
|
|
|
|
(345
|
)
|
|
|
|
9.7%
|
|
|
31%
|
|
|
|
|
|||||||
Total CDOs
|
|
111
|
|
|
$
|
2,371
|
|
|
$
|
1,857
|
|
|
$
|
1,262
|
|
|
|
$
|
(595
|
)
|
|
|
|
8.1%
|
|
|
53%
|
|
|
|
|
BANK AND INSURANCE CDO FAIR VALUE CHANGE ATTRIBUTION
|
|||||||
|
Three Months Ended September 30, 2013
|
||||||
(In millions)
|
Fair value change
|
|
OTTI
|
||||
|
|
|
|
||||
LIBOR change
|
$
|
3
|
|
|
$
|
—
|
|
Collateral change
|
17
|
|
|
—
|
|
||
CPR change
|
(7
|
)
|
|
—
|
|
||
Discount margin change
|
(22
|
)
|
|
—
|
|
||
New model PDs
|
(4
|
)
|
|
(7
|
)
|
||
|
$
|
(13
|
)
|
|
$
|
(7
|
)
|
(Amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Held-to-maturity
|
|
Available-for-sale
|
||||||||||||||
Fair value at September 30, 2013
|
|
|
$
|
152
|
|
|
|
|
$
|
974
|
|
|
|
||||||
|
|
|
Incremental
|
|
Cumulative
|
|
Incremental
|
|
Cumulative
|
||||||||||
Currently Modeled Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expected collateral credit losses
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss percentage from currently defaulted or deferring collateral
2
|
|
|
6.2
|
%
|
|
|
|
|
25.4
|
%
|
|||||||||
Projected loss percentage from currently performing collateral
|
|
|
|
|
|
|
|
|
|||||||||||
1-year
|
|
|
0.2
|
%
|
|
|
6.4
|
%
|
|
0.2
|
%
|
|
|
25.6
|
%
|
||||
years 2-5
|
|
|
1.7
|
%
|
|
|
8.1
|
%
|
|
1.2
|
%
|
|
|
26.8
|
%
|
||||
years 6-30
|
|
|
11.1
|
%
|
|
|
19.2
|
%
|
|
9.7
|
%
|
|
|
36.5
|
%
|
||||
Discount rate
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average spread over LIBOR
|
|
|
765
|
|
bp
|
|
|
|
776
|
|
bp
|
|
|
||||||
Sensitivity of Modeled Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Increase (decrease) in fair value due to increase in projected loss percentage from currently performing collateral
4
|
25%
|
|
$
|
(0.8
|
)
|
|
|
|
|
$
|
(8.9
|
)
|
|
|
|
||||
|
50%
|
|
(1.6
|
)
|
|
|
|
|
(17.5
|
)
|
|
|
|
||||||
|
100%
|
|
(3.3
|
)
|
|
|
|
|
(34.5
|
)
|
|
|
|
||||||
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%
|
|
$
|
(7.0
|
)
|
|
|
|
|
$
|
(64.1
|
)
|
|
|
|
||||
|
50%
|
|
(7.9
|
)
|
|
|
|
|
(71.7
|
)
|
|
|
|
||||||
|
100%
|
|
(9.7
|
)
|
|
|
|
|
(86.9
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to
increase in discount rate
|
+100 bp
|
|
$
|
(12.0
|
)
|
|
|
|
|
$
|
(61.8
|
)
|
|
|
|
||||
|
+ 200 bp
|
|
(22.7
|
)
|
|
|
|
|
(116.6
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to increase in Forward LIBOR Curve
|
+ 100 bp
|
|
$
|
6.6
|
|
|
|
|
|
$
|
32.1
|
|
|
|
|
||||
Increase (decrease) in fair value due to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
increase in prepayment assumption
5
|
+1%
|
|
$
|
3.5
|
|
|
|
|
|
$
|
20.1
|
|
|
|
|
||||
increase in prepayment assumption
6
|
+2%
|
|
7.0
|
|
|
|
|
|
39.1
|
|
|
|
|
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 2.18% to 100%.
|
6
|
Prepayment rate for small banks increased to 9.5% per year for the first 2.25 years and to 5% per year thereafter through maturity.
|
BANK AND INSURANCE TRUST PREFERRED CDOs
|
|||||||||||||||||
|
|
Nine Months Ended
September 30, 2013
|
|||||||||||||||
(In millions)
|
|
No. of securities
|
|
Par
amount
|
|
Amortized cost
|
|
Fair
value
|
|||||||||
Rating changes
1
|
|
|
|
|
|
|
|
|
|
|
|||||||
Upgrade
|
|
34
|
|
|
$
|
898
|
|
|
|
$
|
794
|
|
|
|
$
|
575
|
|
No change
|
|
61
|
|
|
1,229
|
|
|
|
942
|
|
|
|
549
|
|
|||
Downgrade
|
|
5
|
|
|
99
|
|
|
|
16
|
|
|
|
6
|
|
|||
|
|
100
|
|
|
$
|
2,226
|
|
|
|
$
|
1,752
|
|
|
|
$
|
1,130
|
|
|
|
|
|
|
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
|
|
32.4
|
%
|
|
$
|
684
|
|
|
$
|
629
|
|
|
$
|
480
|
|
|
$
|
(149
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(72
|
)
|
Original A
|
15
|
|
15.9
|
%
|
|
336
|
|
|
336
|
|
|
199
|
|
|
(137
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Original BBB
|
5
|
|
2.2
|
%
|
|
46
|
|
|
46
|
|
|
22
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Non-OTTI
|
|
|
50.5
|
%
|
|
1,066
|
|
|
1,011
|
|
|
701
|
|
|
(310
|
)
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|||||||
Original ratings of securities, OTTI recognized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Original AAA
|
1
|
|
2.4
|
%
|
|
50
|
|
|
43
|
|
|
26
|
|
|
(17
|
)
|
|
—
|
|
|
(5
|
)
|
|
(2
|
)
|
|||||||
Original A
|
46
|
|
43.9
|
%
|
|
927
|
|
|
599
|
|
|
296
|
|
|
(303
|
)
|
|
(21
|
)
|
|
(331
|
)
|
|
—
|
|
|||||||
Original BBB
|
6
|
|
3.2
|
%
|
|
67
|
|
|
6
|
|
|
5
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(61
|
)
|
|
—
|
|
|||||||
Total OTTI
|
|
|
49.5
|
%
|
|
1,044
|
|
|
648
|
|
|
327
|
|
|
(321
|
)
|
|
(22
|
)
|
|
(397
|
)
|
|
(2
|
)
|
|||||||
Total noninvestment grade bank and insurance CDOs
|
|
100.0
|
%
|
|
$
|
2,110
|
|
|
$
|
1,659
|
|
|
$
|
1,028
|
|
|
$
|
(631
|
)
|
|
$
|
(22
|
)
|
|
$
|
(397
|
)
|
|
$
|
(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
|
|
|
$
|
27
|
|
|
$
|
21
|
|
|
$
|
(6
|
)
|
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
|
|
|
5
|
|
|
(6
|
)
|
||||
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
|
|
21
|
|
19
|
|
2.6
|
%
|
|
3.0
|
%
|
|
65.5
|
%
|
|
620.1
|
%
|
|
100
|
%
|
|
—
|
|
Weighted average
|
|
|
|
|
|
17.3
|
|
|
8.7
|
|
|
42.0
|
|
|
242.6
|
|
|
100
|
|
|
10.2
|
%
|
|
Worst
|
CC
|
|
30
|
|
14
|
|
28.7
|
|
|
18.1
|
|
|
10.4
|
|
|
147.0
|
|
|
100
|
|
|
15.3
|
|
Original A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Best
|
B
|
|
31
|
|
31
|
|
—
|
|
|
—
|
|
|
28.4
|
|
|
307.2
|
|
|
100
|
|
|
11.6
|
|
Weighted average
|
|
|
|
|
|
1.5
|
|
|
5.0
|
|
|
20.9
|
|
|
156.2
|
|
|
100
|
|
|
12.5
|
|
|
Worst
|
CCC
|
|
6
|
|
5
|
|
4.0
|
|
|
9.3
|
|
|
12.2
|
|
|
133.3
|
|
|
100
|
|
|
13.9
|
|
Original BBB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Best
|
CCC
|
|
31
|
|
31
|
|
—
|
|
|
—
|
|
|
19.7
|
|
|
352.2
|
|
|
100
|
|
|
11.6
|
|
Weighted average
|
|
|
|
|
|
1.3
|
|
|
3.9
|
|
|
12.2
|
|
|
266.0
|
|
|
100
|
|
|
12.8
|
|
|
Worst
|
CC
|
|
21
|
|
18
|
|
4.0
|
|
|
9.3
|
|
|
5.5
|
|
|
181.6
|
|
|
100
|
|
|
13.9
|
|
Original Ratings of Securities, OTTI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Original AAA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Single
|
CCC
|
|
42
|
|
27
|
|
22.5
|
|
|
10.2
|
|
|
30.8
|
|
|
224.3
|
|
|
100
|
|
10.1
|
|
|
Original A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Best
|
CC
|
|
25
|
|
23
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
106.8
|
|
|
100
|
|
|
—
|
|
Weighted average
|
|
|
|
|
|
11.9
|
|
|
8.8
|
|
|
(17.7
|
)
|
|
63.0
|
|
|
69
|
|
|
12.0
|
|
|
Worst
|
C
|
|
3
|
|
—
|
|
33.3
|
|
|
23.6
|
|
|
(84.7
|
)
|
|
15.0
|
|
|
25
|
|
|
16.0
|
|
Original BBB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Best
|
C
|
|
39
|
|
33
|
|
6.3
|
|
|
4.7
|
|
|
(5.9
|
)
|
|
41.1
|
|
|
54
|
|
|
7.9
|
|
Weighted average
|
|
|
|
|
|
14.9
|
|
|
9.3
|
|
|
(18.0
|
)
|
|
(134.2
|
)
|
|
30
|
|
|
11.4
|
|
|
Worst
|
C
|
|
18
|
|
9
|
|
22.5
|
|
|
13.4
|
|
|
(63.4
|
)
|
|
(317.4
|
)
|
|
11
|
|
|
12.9
|
|
1
|
Excludes both defaulted issuers and issuers that have elected to defer payment of current interest.
|
(In millions)
|
September 30,
2013
|
|
December 31,
2012
|
||||||||
|
|
|
|
|
|
|
|
||||
Loans and leases
|
|
$
|
449
|
|
|
|
|
$
|
494
|
|
|
Held-to-maturity – municipal securities
|
|
558
|
|
|
|
|
525
|
|
|
||
Available-for-sale – municipal securities
|
|
65
|
|
|
|
|
75
|
|
|
||
Available-for-sale – auction rate securities
|
|
7
|
|
|
|
|
7
|
|
|
||
Trading account – municipal securities
|
|
27
|
|
|
|
|
21
|
|
|
||
Unused commitments to extend credit
|
|
16
|
|
|
|
|
40
|
|
|
||
Total direct exposure to municipalities
|
|
$
|
1,122
|
|
|
|
|
$
|
1,162
|
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||
(Amounts in millions)
|
Amount
|
|
% of
total loans
|
|
Amount
|
|
% of
total loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
11,904
|
|
|
31.1
|
%
|
|
$
|
11,257
|
|
|
29.9
|
%
|
Leasing
|
375
|
|
|
1.0
|
%
|
|
423
|
|
|
1.1
|
%
|
||
Owner occupied
|
7,379
|
|
|
19.3
|
%
|
|
7,589
|
|
|
20.1
|
%
|
||
Municipal
|
449
|
|
|
1.2
|
%
|
|
494
|
|
|
1.3
|
%
|
||
Total commercial
|
20,107
|
|
|
|
|
19,763
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
2,240
|
|
|
5.9
|
%
|
|
1,939
|
|
|
5.1
|
%
|
||
Term
|
7,929
|
|
|
20.7
|
%
|
|
8,063
|
|
|
21.4
|
%
|
||
Total commercial real estate
|
10,169
|
|
|
|
|
10,002
|
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||
Home equity credit line
|
2,124
|
|
|
5.5
|
%
|
|
2,178
|
|
|
5.8
|
%
|
||
1-4 family residential
|
4,637
|
|
|
12.1
|
%
|
|
4,350
|
|
|
11.6
|
%
|
||
Construction and other consumer real estate
|
321
|
|
|
0.8
|
%
|
|
321
|
|
|
0.9
|
%
|
||
Bankcard and other revolving plans
|
332
|
|
|
0.9
|
%
|
|
307
|
|
|
0.8
|
%
|
||
Other
|
208
|
|
|
0.5
|
%
|
|
216
|
|
|
0.6
|
%
|
||
Total consumer
|
7,622
|
|
|
|
|
7,372
|
|
|
|
||||
FDIC-supported loans
1
|
375
|
|
|
1.0
|
%
|
|
528
|
|
|
1.4
|
%
|
||
Total net loans
|
$
|
38,273
|
|
|
100.0
|
%
|
|
$
|
37,665
|
|
|
100.0
|
%
|
(In millions)
|
September 30,
2013
|
|
December 31,
2012
|
||||||||
|
|
|
|
|
|
|
|
||||
Bank-owned life insurance
|
|
$
|
464
|
|
|
|
|
$
|
456
|
|
|
Federal Home Loan Bank stock
|
|
105
|
|
|
|
|
109
|
|
|
||
Federal Reserve stock
|
|
121
|
|
|
|
|
123
|
|
|
||
SBIC investments
|
|
57
|
|
|
|
|
46
|
|
|
||
Non-SBIC investment funds and other
|
|
99
|
|
|
|
|
107
|
|
|
||
Trust preferred securities
|
|
5
|
|
|
|
|
14
|
|
|
||
|
|
$
|
851
|
|
|
|
|
$
|
855
|
|
|
|
Inception through
September 30, 2013 |
||||||||||
(In millions)
|
Total actual net losses
|
|
Threshold
|
||||||||
|
|
|
|
|
|
|
|
||||
Alliance Bank
|
|
$
|
168
|
|
|
|
|
$
|
275
|
|
|
Vineyard Bank
|
|
199
|
|
|
|
|
465
|
|
|
||
Great Basin Bank
|
|
11
|
|
|
|
|
40
|
|
|
||
|
|
$
|
378
|
|
|
|
|
$
|
780
|
|
|
(Amounts in millions)
|
September 30,
2013
|
|
Percent
guaranteed
|
|
December 31,
2012
|
|
Percent
guaranteed
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
550
|
|
|
|
|
75
|
%
|
|
|
|
$
|
567
|
|
|
|
|
74
|
%
|
|
Commercial real estate
|
|
17
|
|
|
|
|
76
|
%
|
|
|
|
20
|
|
|
|
|
76
|
%
|
|
||
Consumer
|
|
4
|
|
|
|
|
100
|
%
|
|
|
|
3
|
|
|
|
|
100
|
%
|
|
||
Total loans excluding FDIC-supported loans
|
$
|
571
|
|
|
|
|
75
|
%
|
|
|
|
$
|
590
|
|
|
|
|
75
|
%
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||
(Amounts in millions)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Real estate, rental and leasing
|
$
|
2,718
|
|
|
13.5
|
%
|
|
$
|
2,782
|
|
|
14.1
|
%
|
Manufacturing
|
2,255
|
|
|
11.2
|
%
|
|
1,999
|
|
|
10.1
|
%
|
||
Mining, quarrying and oil and gas extraction
|
2,080
|
|
|
10.3
|
%
|
|
1,992
|
|
|
10.1
|
%
|
||
Retail trade
|
1,683
|
|
|
8.4
|
%
|
|
1,661
|
|
|
8.4
|
%
|
||
Wholesale trade
|
1,450
|
|
|
7.2
|
%
|
|
1,521
|
|
|
7.7
|
%
|
||
Healthcare and social assistance
|
1,220
|
|
|
6.1
|
%
|
|
1,205
|
|
|
6.1
|
%
|
||
Finance and insurance
|
1,096
|
|
|
5.5
|
%
|
|
1,093
|
|
|
5.5
|
%
|
||
Transportation and warehousing
|
1,023
|
|
|
5.1
|
%
|
|
1,001
|
|
|
5.1
|
%
|
||
Professional, scientific and technical services
|
916
|
|
|
4.6
|
%
|
|
968
|
|
|
4.9
|
%
|
||
Construction
|
915
|
|
|
4.5
|
%
|
|
1,016
|
|
|
5.1
|
%
|
||
Accommodation and food services
|
767
|
|
|
3.8
|
%
|
|
786
|
|
|
4.0
|
%
|
||
Other
1
|
3,984
|
|
|
19.8
|
%
|
|
3,739
|
|
|
18.9
|
%
|
||
Total
|
$
|
20,107
|
|
|
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
|
9/30/2013
|
|
$
|
1,159
|
|
|
$
|
631
|
|
|
$
|
2,049
|
|
|
$
|
572
|
|
|
$
|
467
|
|
|
$
|
982
|
|
|
$
|
1,091
|
|
|
$
|
202
|
|
|
$
|
776
|
|
|
$
|
7,929
|
|
|
78.0
|
%
|
% of loan type
|
|
|
14.6%
|
|
8.0%
|
|
25.8%
|
|
7.2%
|
|
5.9%
|
|
12.4%
|
|
13.8%
|
|
2.5%
|
|
9.8%
|
|
100.0%
|
|
|
|||||||||||||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
30-89 days
|
9/30/2013
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
1.9
|
%
|
|
0.3
|
%
|
|
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
|
9/30/2013
|
|
0.1
|
%
|
|
0.7
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
—
|
|
|
0.3
|
%
|
|
0.1
|
%
|
|
—
|
|
|
1.1
|
%
|
|
0.3
|
%
|
|
|
|||||||||||
|
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
|
9/30/2013
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
|
12/31/2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Nonaccrual loans
|
9/30/2013
|
|
3
|
|
|
6
|
|
|
12
|
|
|
2
|
|
|
5
|
|
|
7
|
|
|
4
|
|
|
2
|
|
|
19
|
|
|
60
|
|
|
|
|||||||||||
|
12/31/2012
|
|
10
|
|
|
9
|
|
|
19
|
|
|
14
|
|
|
11
|
|
|
8
|
|
|
4
|
|
|
3
|
|
|
47
|
|
|
125
|
|
|
|
|||||||||||
Residential construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Balance outstanding
|
9/30/2013
|
|
$
|
63
|
|
|
$
|
44
|
|
|
$
|
233
|
|
|
$
|
1
|
|
|
$
|
40
|
|
|
$
|
225
|
|
|
$
|
96
|
|
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
723
|
|
|
7.1
|
%
|
% of loan type
|
|
|
8.7
|
%
|
|
6.1
|
%
|
|
32.4
|
%
|
|
0.1
|
%
|
|
5.5
|
%
|
|
31.1
|
%
|
|
13.3
|
%
|
|
0.3
|
%
|
|
2.5
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
30-89 days
|
9/30/2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
%
|
|
0.2
|
%
|
|
0.4
|
%
|
|
—
|
|
|
—
|
|
|
0.1
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
0.6
|
%
|
|
1.0
|
%
|
|
0.4
|
%
|
|
10.7
|
%
|
|
4.9
|
%
|
|
7.9
|
%
|
|
0.2
|
%
|
|
—
|
|
|
—
|
|
|
3.1
|
%
|
|
|
|||||||||||
≥ 90 days
|
9/30/2013
|
|
0.6
|
%
|
|
—
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
|
4.8
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
0.7
|
%
|
|
—
|
|
|
0.2
|
%
|
|
—
|
|
|
0.5
|
%
|
|
6.7
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
9/30/2013
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
12/31/2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
|
|||||||||||
Nonaccrual loans
|
9/30/2013
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
|
|||||||||||
|
12/31/2012
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
|
|||||||||||
Commercial construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Balance outstanding
|
9/30/2013
|
|
$
|
100
|
|
|
$
|
69
|
|
|
$
|
253
|
|
|
$
|
103
|
|
|
$
|
121
|
|
|
$
|
428
|
|
|
$
|
319
|
|
|
$
|
36
|
|
|
$
|
88
|
|
|
$
|
1,517
|
|
|
14.9
|
%
|
% of loan type
|
|
|
6.6
|
%
|
|
4.5
|
%
|
|
16.7
|
%
|
|
6.8
|
%
|
|
8.0
|
%
|
|
28.2
|
%
|
|
21.0
|
%
|
|
2.4
|
%
|
|
5.8
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
30-89 days
|
9/30/2013
|
|
0.2
|
%
|
|
—
|
|
|
0.1
|
%
|
|
16.7
|
%
|
|
0.2
|
%
|
|
0.6
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
2.4
|
%
|
|
—
|
|
|
—
|
|
|
27.9
|
%
|
|
0.4
|
%
|
|
2.0
|
%
|
|
2.3
|
%
|
|
—
|
|
|
7.3
|
%
|
|
3.1
|
%
|
|
|
|||||||||||
≥ 90 days
|
9/30/2013
|
|
—
|
|
|
1.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
%
|
|
—
|
|
|
6.2
|
%
|
|
—
|
|
|
0.5
|
%
|
|
|
|||||||||||
|
12/31/2012
|
|
—
|
|
|
2.6
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
—
|
|
|
4.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
9/30/2013
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
12/31/2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Nonaccrual loans
|
9/30/2013
|
|
—
|
|
|
1
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
6
|
|
|
13
|
|
|
2
|
|
|
—
|
|
|
41
|
|
|
|
|||||||||||
|
12/31/2012
|
|
—
|
|
|
1
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
29
|
|
|
14
|
|
|
3
|
|
|
—
|
|
|
69
|
|
|
|
|||||||||||
Total construction and land development
|
9/30/2013
|
|
$
|
163
|
|
|
$
|
113
|
|
|
$
|
486
|
|
|
$
|
104
|
|
|
$
|
161
|
|
|
$
|
653
|
|
|
$
|
415
|
|
|
$
|
38
|
|
|
$
|
107
|
|
|
$
|
2,240
|
|
|
|
|
Total commercial real estate
|
9/30/2013
|
|
$
|
1,322
|
|
|
$
|
744
|
|
|
$
|
2,535
|
|
|
$
|
676
|
|
|
$
|
628
|
|
|
$
|
1,635
|
|
|
$
|
1,506
|
|
|
$
|
240
|
|
|
$
|
883
|
|
|
$
|
10,169
|
|
|
100.0
|
%
|
(In millions)
|
|
|
September 30, 2013
|
|
|
|
December 31, 2012
|
|
||||||||||||||||
Year of
origination
|
|
Outstanding
balance
|
|
Total
commitments
|
|
Outstanding
balance
|
|
Total
commitments
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2013
|
|
|
$
|
114
|
|
|
|
|
$
|
244
|
|
|
|
|
|
|
|
|
|
|
||||
2012
|
|
|
109
|
|
|
|
|
216
|
|
|
|
|
$
|
117
|
|
|
|
|
$
|
234
|
|
|
||
2011
|
|
|
79
|
|
|
|
|
158
|
|
|
|
|
97
|
|
|
|
|
182
|
|
|
||||
2010
|
|
|
54
|
|
|
|
|
104
|
|
|
|
|
68
|
|
|
|
|
122
|
|
|
||||
2009
|
|
|
56
|
|
|
|
|
113
|
|
|
|
|
65
|
|
|
|
|
125
|
|
|
||||
2008
|
|
|
133
|
|
|
|
|
217
|
|
|
|
|
158
|
|
|
|
|
250
|
|
|
||||
2007
|
|
|
165
|
|
|
|
|
265
|
|
|
|
|
189
|
|
|
|
|
295
|
|
|
||||
2006 and prior
|
|
|
350
|
|
|
|
|
787
|
|
|
|
|
419
|
|
|
|
|
910
|
|
|
||||
Total
|
|
|
$
|
1,060
|
|
|
|
|
$
|
2,104
|
|
|
|
|
$
|
1,113
|
|
|
|
|
$
|
2,118
|
|
|
|
|
Percentage of HECL portfolio
|
||||||||
CLTV
|
|
September 30, 2013
|
|
December 31,
2012
|
||||||
>100%
|
|
|
8
|
%
|
|
|
|
14
|
%
|
|
90-100%
|
|
|
6
|
%
|
|
|
|
9
|
%
|
|
80-89%
|
|
|
11
|
%
|
|
|
|
13
|
%
|
|
< 80%
|
|
|
75
|
%
|
|
|
|
64
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
(Amounts in millions)
|
September 30,
2013
|
|
December 31,
2012
|
||||
|
|
|
|
||||
Nonaccrual loans
|
$
|
467
|
|
|
$
|
631
|
|
Other real estate owned
|
58
|
|
|
90
|
|
||
Nonperforming lending-related assets, excluding FDIC-supported assets
|
525
|
|
|
721
|
|
||
FDIC-supported nonaccrual loans
|
5
|
|
|
17
|
|
||
FDIC-supported other real estate owned
|
8
|
|
|
8
|
|
||
FDIC-supported nonperforming lending-related assets
|
13
|
|
|
25
|
|
||
Total nonperforming lending-related assets
|
$
|
538
|
|
|
$
|
746
|
|
Ratio of nonperforming lending-related assets to net loans and leases
1
and other real estate owned
|
1.40
|
%
|
|
1.96
|
%
|
||
Accruing loans past due 90 days or more, excluding FDIC-supported loans
|
$
|
9
|
|
|
$
|
10
|
|
FDIC-supported loans past due 90 days or more
|
22
|
|
|
52
|
|
||
Ratio of accruing loans past due 90 days or more to net loans and leases
1
|
0.08
|
%
|
|
0.16
|
%
|
||
Nonaccrual loans and accruing loans past due 90 days or more
|
$
|
503
|
|
|
$
|
710
|
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to
net loans and leases
1
|
1.31
|
%
|
|
1.87
|
%
|
||
Accruing loans past due 30 – 89 days, excluding FDIC-supported loans
|
$
|
85
|
|
|
$
|
185
|
|
FDIC-supported loans past due 30 – 89 days
|
11
|
|
|
12
|
|
||
Classified loans, excluding FDIC-supported loans
|
1,433
|
|
|
1,767
|
|
(In millions)
|
September 30,
2013
|
|
December 31,
2012
|
||||||||
|
|
|
|
|
|
|
|
||||
Restructured loans – accruing
|
|
$
|
385
|
|
|
|
|
$
|
407
|
|
|
Restructured loans – nonaccruing
|
|
166
|
|
|
|
|
216
|
|
|
||
Total
|
|
$
|
551
|
|
|
|
|
$
|
623
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
||||||||||||
(In millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
548
|
|
|
$
|
621
|
|
|
$
|
623
|
|
|
$
|
744
|
|
New identified TDRs and principal increases
|
66
|
|
|
77
|
|
|
160
|
|
|
227
|
|
||||
Payments and payoffs
|
(52
|
)
|
|
(34
|
)
|
|
(186
|
)
|
|
(178
|
)
|
||||
Charge-offs
|
(4
|
)
|
|
(10
|
)
|
|
(11
|
)
|
|
(23
|
)
|
||||
No longer reported as TDRs
|
(2
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(64
|
)
|
||||
Sales and other
|
(5
|
)
|
|
(25
|
)
|
|
(30
|
)
|
|
(78
|
)
|
||||
Balance at end of period
|
$
|
551
|
|
|
$
|
628
|
|
|
$
|
551
|
|
|
$
|
628
|
|
(Amounts in millions)
|
Nine Months
Ended
September 30,
2013
|
|
Twelve Months
Ended December 31, 2012
|
|
Nine Months
Ended
September 30,
2012
|
||||||
|
|
|
|
|
|
||||||
Loans and leases outstanding (net of unearned income)
|
$
|
38,273
|
|
|
$
|
37,665
|
|
|
$
|
37,263
|
|
Average loans and leases outstanding (net of unearned income)
|
$
|
37,933
|
|
|
$
|
37,037
|
|
|
$
|
36,967
|
|
Allowance for loan losses:
|
|
|
|
|
|
||||||
Balance at beginning of period
|
$
|
896
|
|
|
$
|
1,052
|
|
|
$
|
1,052
|
|
Provision charged against earnings
|
(57
|
)
|
|
14
|
|
|
24
|
|
|||
Adjustment for FDIC-supported loans
|
(9
|
)
|
|
(15
|
)
|
|
(13
|
)
|
|||
Charge-offs:
|
|
|
|
|
|
||||||
Commercial
|
(49
|
)
|
|
(121
|
)
|
|
(94
|
)
|
|||
Commercial real estate
|
(20
|
)
|
|
(85
|
)
|
|
(72
|
)
|
|||
Consumer
|
(25
|
)
|
|
(61
|
)
|
|
(46
|
)
|
|||
Total
|
(94
|
)
|
|
(267
|
)
|
|
(212
|
)
|
|||
Recoveries:
|
|
|
|
|
|
||||||
Commercial
|
30
|
|
|
56
|
|
|
37
|
|
|||
Commercial real estate
|
21
|
|
|
42
|
|
|
29
|
|
|||
Consumer
|
10
|
|
|
14
|
|
|
10
|
|
|||
Total
|
61
|
|
|
112
|
|
|
76
|
|
|||
Net loan and lease charge-offs
|
(33
|
)
|
|
(155
|
)
|
|
(136
|
)
|
|||
Balance at end of period
|
$
|
797
|
|
|
$
|
896
|
|
|
$
|
927
|
|
|
|
|
|
|
|
||||||
Ratio of annualized net charge-offs to average loans and leases
|
0.12
|
%
|
|
0.42
|
%
|
|
0.49
|
%
|
|||
Ratio of allowance for loan losses to net loans and leases, at period end
|
2.08
|
%
|
|
2.38
|
%
|
|
2.49
|
%
|
|||
Ratio of allowance for loan losses to nonperforming loans, at period end
|
169.13
|
%
|
|
138.25
|
%
|
|
128.87
|
%
|
|||
Ratio of allowance for loan losses to nonaccrual loans and accruing loans past due 90 days or more, at period end
|
158.43
|
%
|
|
126.22
|
%
|
|
116.64
|
%
|
REPRICING SCENARIO ASSUMPTIONS BY DEPOSIT PRODUCT
|
||||||||||||
|
|
As of September 30, 2013
|
||||||||||
|
|
Fast
|
|
Slow
|
||||||||
Product
|
|
Effective duration (base)
|
|
Effective duration (+200 bps)
|
|
Effective duration (base)
|
|
Effective duration (+200 bps)
|
||||
|
|
|
|
|
|
|
|
|
||||
Demand deposits
|
|
1.55
|
%
|
|
1.93
|
%
|
|
2.30
|
%
|
|
2.93
|
%
|
Money market
|
|
0.77
|
%
|
|
0.74
|
%
|
|
1.15
|
%
|
|
1.10
|
%
|
Savings and interest on checking
|
|
2.49
|
%
|
|
2.35
|
%
|
|
3.20
|
%
|
|
3.03
|
%
|
|
|
As of September 30, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(2.7
|
)%
|
|
6.0
|
%
|
|
13.0
|
%
|
|
20.3
|
%
|
Slow
|
|
(2.9
|
)%
|
|
7.4
|
%
|
|
15.8
|
%
|
|
24.5
|
%
|
|
|
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 September 30, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
0.9
|
%
|
|
1.5
|
%
|
|
3.7
|
%
|
|
5.2
|
%
|
Slow
|
|
(2.5
|
)%
|
|
6.2
|
%
|
|
13.3
|
%
|
|
19.1
|
%
|
|
|
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)
|
September 30,
2013
|
|
December 31, 2012
|
|
September 30,
2012
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
929,498
|
|
|
$
|
2,001
|
|
|
$
|
2,031
|
|
Interest-bearing deposits
|
98
|
|
|
75,808
|
|
|
580,994
|
|
|||
Security resell agreements
|
—
|
|
|
575,000
|
|
|
—
|
|
|||
Investment securities:
|
|
|
|
|
|
||||||
Held-to-maturity, at adjusted cost (approximate fair value of $27,159,
$22,112 and $17,119)
|
19,277
|
|
|
22,679
|
|
|
14,350
|
|
|||
Available-for-sale, at fair value
|
539,352
|
|
|
461,665
|
|
|
393,637
|
|
|||
Loans, net of unearned fees of $0, $0 and $0 and allowance for loan losses of $0, $23 and $0
|
—
|
|
|
1,277
|
|
|
—
|
|
|||
Other noninterest-bearing investments
|
38,241
|
|
|
50,799
|
|
|
51,120
|
|
|||
Investments in subsidiaries:
|
|
|
|
|
|
||||||
Commercial banks and bank holding company
|
6,641,165
|
|
|
6,668,881
|
|
|
6,722,096
|
|
|||
Other operating companies
|
34,588
|
|
|
36,516
|
|
|
42,403
|
|
|||
Nonoperating – ZMFU II, Inc.
1
|
43,935
|
|
|
43,012
|
|
|
42,795
|
|
|||
Receivables from subsidiaries:
|
|
|
|
|
|
||||||
Other operating companies
|
—
|
|
|
—
|
|
|
5,000
|
|
|||
Other assets
|
254,012
|
|
|
311,093
|
|
|
246,491
|
|
|||
|
$
|
8,500,166
|
|
|
$
|
8,248,731
|
|
|
$
|
8,100,917
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Other liabilities
|
$
|
114,147
|
|
|
$
|
106,159
|
|
|
$
|
75,701
|
|
Commercial paper:
|
|
|
|
|
|
||||||
Due to affiliates
|
—
|
|
|
—
|
|
|
22,999
|
|
|||
Due to others
|
—
|
|
|
—
|
|
|
1,199
|
|
|||
Other short-term borrowings:
|
|
|
|
|
|
||||||
Due to others
|
—
|
|
|
4,951
|
|
|
4,951
|
|
|||
Subordinated debt to affiliated trusts
|
15,464
|
|
|
309,278
|
|
|
309,278
|
|
|||
Long-term debt:
|
|
|
|
|
|
||||||
Due to affiliates
|
17
|
|
|
—
|
|
|
—
|
|
|||
Due to others
|
2,037,729
|
|
|
1,776,274
|
|
|
1,765,672
|
|
|||
Total liabilities
|
2,167,357
|
|
|
2,196,662
|
|
|
2,179,800
|
|
|||
Shareholders’ equity:
|
|
|
|
|
|
||||||
Preferred stock
|
1,003,970
|
|
|
1,128,302
|
|
|
1,123,377
|
|
|||
Common stock
|
4,172,887
|
|
|
4,166,109
|
|
|
4,162,001
|
|
|||
Retained earnings
|
1,540,455
|
|
|
1,203,815
|
|
|
1,170,477
|
|
|||
Accumulated other comprehensive loss
|
(384,503
|
)
|
|
(446,157
|
)
|
|
(534,738
|
)
|
|||
Total shareholders’ equity
|
6,332,809
|
|
|
6,052,069
|
|
|
5,921,117
|
|
|||
|
$
|
8,500,166
|
|
|
$
|
8,248,731
|
|
|
$
|
8,100,917
|
|
|
September 30,
2013 |
|
December 31,
2012 |
|
September 30,
2012 |
|||
|
|
|
|
|
|
|||
Tangible common equity ratio
|
7.90
|
%
|
|
7.09
|
%
|
|
7.17
|
%
|
Tangible equity ratio
|
9.75
|
%
|
|
9.15
|
%
|
|
9.32
|
%
|
Average equity to average assets (three months ended)
|
12.39
|
%
|
|
11.03
|
%
|
|
12.22
|
%
|
Risk-based capital ratios:
|
|
|
|
|
|
|||
Common equity Tier 1
|
10.47
|
%
|
|
9.80
|
%
|
|
9.86
|
%
|
Tier 1 leverage
|
10.63
|
%
|
|
10.96
|
%
|
|
11.05
|
%
|
Tier 1 risk-based
|
13.10
|
%
|
|
13.38
|
%
|
|
13.49
|
%
|
Total risk-based
|
14.82
|
%
|
|
15.05
|
%
|
|
15.25
|
%
|
|
|
|
|
|
|
|||
Return on average common equity (three months ended)
|
16.03
|
%
|
|
2.91
|
%
|
|
5.21
|
%
|
Tangible return on average tangible common equity
(three months ended)
|
20.34
|
%
|
|
4.07
|
%
|
|
7.02
|
%
|
•
|
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)
|
September 30,
2013 |
|
December 31,
2012 |
|
September 30,
2012 |
||||||
|
|
|
|
|
|
||||||
Controlling interest shareholders’ equity (GAAP)
|
$
|
6,333
|
|
|
$
|
6,052
|
|
|
$
|
5,921
|
|
Accumulated other comprehensive loss
|
384
|
|
|
446
|
|
|
535
|
|
|||
Nonqualifying goodwill and intangibles
|
(1,054
|
)
|
|
(1,065
|
)
|
|
(1,070
|
)
|
|||
Other regulatory adjustments
|
(3
|
)
|
|
3
|
|
|
3
|
|
|||
Qualifying trust preferred securities
|
163
|
|
|
448
|
|
|
448
|
|
|||
Tier 1 capital (regulatory)
|
5,823
|
|
|
5,884
|
|
|
5,837
|
|
|||
Qualifying trust preferred securities
|
(163
|
)
|
|
(448
|
)
|
|
(448
|
)
|
|||
Preferred stock
|
(1,004
|
)
|
|
(1,128
|
)
|
|
(1,123
|
)
|
|||
Common equity Tier 1 capital (non-GAAP)
|
$
|
4,656
|
|
|
$
|
4,308
|
|
|
$
|
4,266
|
|
|
|
|
|
|
|
||||||
Risk-weighted assets (regulatory)
|
$
|
44,457
|
|
|
$
|
43,970
|
|
|
$
|
43,259
|
|
Common equity Tier 1 capital to risk-weighted assets (non-GAAP)
|
10.47
|
%
|
|
9.80
|
%
|
|
9.86
|
%
|
|
Three Months Ended
|
||||||||||
(Amounts in thousands)
|
September 30,
2013 |
|
December 31,
2012 |
|
September 30,
2012 |
||||||
|
|
|
|
|
|
||||||
Net earnings applicable to common shareholders (GAAP)
|
$
|
209,707
|
|
|
$
|
35,605
|
|
|
$
|
62,322
|
|
Adjustments, net of tax:
|
|
|
|
|
|
||||||
Impairment loss on goodwill
|
—
|
|
|
583
|
|
|
—
|
|
|||
Amortization of core deposit and other intangibles
|
2,268
|
|
|
2,677
|
|
|
2,692
|
|
|||
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a)
|
$
|
211,975
|
|
|
$
|
38,865
|
|
|
$
|
65,014
|
|
|
|
|
|
|
|
||||||
Average common equity (GAAP)
|
$
|
5,190,073
|
|
|
$
|
4,862,972
|
|
|
$
|
4,758,858
|
|
Average goodwill
|
(1,014,129
|
)
|
|
(1,014,986
|
)
|
|
(1,015,129
|
)
|
|||
Average core deposit and other intangibles
|
(41,751
|
)
|
|
(53,083
|
)
|
|
(57,345
|
)
|
|||
Average tangible common equity (non-GAAP) (b)
|
$
|
4,134,193
|
|
|
$
|
3,794,903
|
|
|
$
|
3,686,384
|
|
|
|
|
|
|
|
||||||
Number of days in quarter (c)
|
92
|
|
|
92
|
|
|
92
|
|
|||
Number of days in year (d)
|
365
|
|
|
366
|
|
|
366
|
|
|||
|
|
|
|
|
|
||||||
Tangible return on average tangible common equity
(non-GAAP) (a/b/c*d)
|
20.34
|
%
|
|
4.07
|
%
|
|
7.02
|
%
|
(Amounts in millions)
|
September 30,
2013 |
|
December 31,
2012 |
|
September 30,
2012 |
||||||
|
|
|
|
|
|
||||||
Total shareholders’ equity (GAAP)
|
$
|
6,333
|
|
|
$
|
6,049
|
|
|
$
|
5,918
|
|
Goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,015
|
)
|
|||
Core deposit and other intangibles
|
(40
|
)
|
|
(51
|
)
|
|
(55
|
)
|
|||
Tangible equity (non-GAAP) (a)
|
5,279
|
|
|
4,984
|
|
|
4,848
|
|
|||
Preferred stock
|
(1,004
|
)
|
|
(1,128
|
)
|
|
(1,123
|
)
|
|||
Noncontrolling interests
|
—
|
|
|
3
|
|
|
3
|
|
|||
Tangible common equity (non-GAAP) (b)
|
$
|
4,275
|
|
|
$
|
3,859
|
|
|
$
|
3,728
|
|
|
|
|
|
|
|
||||||
Total assets (GAAP)
|
$
|
55,188
|
|
|
$
|
55,512
|
|
|
$
|
53,087
|
|
Goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,015
|
)
|
|||
Core deposit and other intangibles
|
(40
|
)
|
|
(51
|
)
|
|
(55
|
)
|
|||
Tangible assets (non-GAAP) (c)
|
$
|
54,134
|
|
|
$
|
54,447
|
|
|
$
|
52,017
|
|
|
|
|
|
|
|
||||||
Tangible equity ratio (a/c)
|
9.75
|
%
|
|
9.15
|
%
|
|
9.32
|
%
|
|||
Tangible common equity ratio (b/c)
|
7.90
|
%
|
|
7.09
|
%
|
|
7.17
|
%
|
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
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
July
|
|
|
2,676
|
|
|
|
$
|
28.36
|
|
|
|
—
|
|
|
|
|
$
|
—
|
|
|
August
|
|
|
732
|
|
|
|
29.46
|
|
|
|
—
|
|
|
|
|
—
|
|
|
||
September
|
|
|
718
|
|
|
|
28.27
|
|
|
|
—
|
|
|
|
|
—
|
|
|
||
Third quarter
|
|
|
4,126
|
|
|
|
28.54
|
|
|
|
—
|
|
|
|
|
|
|
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.
|
*
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
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.
|
*
|
|
|
|
|
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
|
|
Articles of Amendment to the Restated Articles of Incorporation of Zions Bancorporation with respect to the Series J Fixed/Floating-Rate Non-Cumulative Perpetual Preferred Stock, dated August 8, 2013, incorporated by reference to Exhibit 3.1 of Form 8-K filed August 13, 2013.
|
*
|
|
|
|
|
3.18
|
|
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.
|
*
|
|
|
|
|
10.1
|
|
Zions Bancorporation Third Restated and Revised Deferred Compensation Plan (filed herewith).
|
|
|
|
|
|
10.2
|
|
Zions Bancorporation Fourth Restated Deferred Compensation Plan for Directors (filed herewith).
|
|
|
|
|
|
10.3
|
|
Amended and Restated Amegy Bancorporation, Inc. Non-Employee Directors Deferred Fee Plan, dated July 26, 2013 (filed herewith).
|
|
|
|
|
|
10.4
|
|
Zions Bancorporation 2013-2015 Value Sharing Plan (filed herewith).
|
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
10.5
|
|
Fifth Amendment to Trust Agreement between Fidelity Management Trust Company and Zions Bancorporation for the Deferred Compensation Plans (filed herewith).
|
|
|
|
|
|
10.6
|
|
Form of Performance Stock Option Award Agreement, 2005 Stock Option and Incentive Plan (filed herewith).
|
|
|
|
|
|
10.7
|
|
Form of Performance Restricted Stock Unit Award Agreement, 2005 Stock Option and Incentive Plan (filed herewith).
|
|
|
|
|
|
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).
|
|
|
|
|
|
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 September 30, 2013 and December 31, 2012, (ii) the Consolidated Statements of Income for the three months ended September 30, 2013 and September 30, 2012 and the nine months ended September 30, 2013 and September 30, 2012, (iii) the Consolidated Statements of Comprehensive Income for the three months ended September 30, 2013 and September 30, 2012 and the nine months ended September 30, 2013 and September 30, 2012, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended September 30, 2013 and September 30, 2012, (v) the Consolidated Statements of Cash Flows for the three months ended September 30, 2013 and September 30, 2012 and the nine months ended September 30, 2013 and September 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
|
(a)
|
Base Salary.
A Participant shall be permitted to defer a maximum of fifty (50%) of Base Salary earned in a Plan Year. In the case of a Participant whose Base Salary contains a commission element, the Participant shall be permitted to defer a maximum of fifty percent (50%) of all commissions earned in the Plan Year.
|
(b)
|
Bonus
. A participant shall be permitted to defer a maximum of one hundred (100%) of all amounts otherwise includible as Bonus pay (as defined in Section 2.4) with respect to a Plan Year.
|
(c)
|
No Minimum Deferral.
There shall be no minimum deferral percentage which may be elected by an Eligible Employee, whether applicable to Base Salary, Bonus or both. Nevertheless, the Committee may, in its discretion, establish without further written amendment to this Plan a
minimum deferral percentage amount, incremental deferral percentage or minimum dollar amount applicable to Base Salary or Bonus(es) for any given Plan Year.
|
(d)
|
Hardship Withdrawal Request.
All deferrals by an Eligible Employee for the remainder of the Plan Year shall cease in the event the Committee approves a request of the Eligible Employee for a Hardship withdrawal for that Plan Year. No cessation of deferrals shall affect any limit established pursuant to Section 3.4(c) above, and no deferral amounts so reduced or not made shall be required to be made in addition to any future deferrals that are not affected by the Hardship request. This rule shall also apply in the same manner if the hardship withdrawal is made by the Eligible Employee from the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan.
|
1)
|
Establishment of Award Fund
|
2)
|
Participation Units
|
3)
|
Calculation Methodology
|
•
|
The cumulative Adjusted PTPP Earnings over the full three year period must equal or exceed $1,308,110,536, and the realized value will be proportionately reduced to the extent that cumulative Adjusted PTPP Earnings for the three-year period is less than $1,760,918,030; and
|
•
|
The average of the annual NCO ratio for the three year period must be equal to or less than .90%, and the realized value will be proportionately reduced to the extent that the average annual NCO ratio is greater than .60%.
|
•
|
Any such reductions in the value of the RSUs attributable to Adjusted PTPP Earnings would be made to the portion of the RSUs attributable to the Base Amount; and any such reductions in the value of the RSUs attributable to the NCO ratio would be made to the portion of the RSUs attributable to the Credit Achievement Amount.
|
•
|
Each Participant’s adjusted number of RSUs will be settled for cash during the first quarter of 2016, with the value (before applicable witholding taxes) of each RSU determined by the average closing price for Zions Bancorporation common shares for each trading day during January, 2016.
|
•
|
Minus, net fixed income securities valuation and impairment
gains
recognized through the income statement;
|
•
|
Minus, fair value and non-hedge derivative income (loss)
|
•
|
Minus, with respect to FDIC-indemnified loans, for any given period:
|
◦
|
Total gross interest income less originally projected interest income,
|
◦
|
Less, indemnification asset amortization
|
•
|
any adjustment deemed necessary by the Committee to normalize PTPP Earnings as a result of unusual and extraordinary changes in internal cost or income allocations during the Award Period resulting from reclassifications or changes in allocation methodologies which produce material changes in costs or income which are not offset by a corresponding change in income or costs within the Bank;
|
•
|
any other adjustments, which, in the sole discretion of the Committee, are required to equitably reflect operating performance during the Award Period.
|
4)
|
Other Administrative Provisions
|
(1)
|
This is a discretionary Plan governed and interpreted by the Committee, whose decisions shall be final
. The intent of the Plan is to fairly reward Participants for increasing shareholder value. If any adjustments need to be made to allow this Plan to accomplish its purpose, the Committee in its sole discretion can make those adjustments.
|
(2)
|
The Committee may, at its sole discretion, alter the terms of the Plan at any time during an Award Period.
|
(3)
|
Participants will not vest in any benefits available under the Plan until any payments hereunder are made after the conclusion of the Award Period. Dividends will not be paid on RSUs.
|
(4)
|
Participants must be employed by the Company or one of its subsidiaries at the time payment is made. Nevertheless, upon death, permanent disability, or normal or early retirement (unless upon early retirement the Participant becomes employed by an entity which competes with Zions Bancorporation or any of its subsidiaries), Participant (or his/her estate) shall be eligible to receive a pro-rata incentive payment at the conclusion of the Award Period. This award will be based upon the Participant’s calculated award as approved by the Committee and will be prorated for the number of full calendar quarters the Participant was engaged as an officer of the Company or its subsidiaries prior to death, disability or retirement. For purposes of this Plan, a Participant will generally not be considered eligible for early retirement before age 55, or for normal retirement before age 65, unless otherwise approved by the Committee.
|
(5)
|
The Company shall retain the right to withhold payment of incentives otherwise earned under this Plan to any individual Participant or to all Participants as a group in the event of a significant deterioration in the Company’s or the Bank’s financial condition, if so required by regulatory authorities, or for any other reason considered valid by the Board in its sole discretion including but not limited to those set out in the Company’s Incentive Compensation Clawback Policy as in effect at any time during or subsequent to the Award Period.
|
(6)
|
The terms of this plan are subject to and limited by applicable law, including, without limitation, the Sarbanes Oxley Act of 2002, the Dodd-Frank Act, and regulations or guidance issued by the Board of Governors of the Federal Reserve System or other regulatory agencies.
|
(7)
|
Designation as a Participant in the Plan does not create a contract of employment for any specified time, nor shall such act to alter or amend the Company’s “at-will” policy of employment.
|
(8)
|
In the event a Participant transfers within Zions Bancorporation during the Award Period, he/she may be eligible to receive a pro-rata award from each participating Zions entity based on the number of months in each entity and each entity’s financial and credit performance.
|
(9)
|
In the event of a change in control of the Company (as defined in the Company’s Change in Control Plan), the Plan will be terminated and payments shall be made in accordance with the provisions of section 3 (b) of the Change in Control Plan.
|
(10)
|
This document is intended to provide a guideline for the creation and distribution of incentive compensation. Nothing herein creates a contractual obligation binding on the Board or the Committee, and no Participant shall have any legal rights with respect to an Award until such Award is distributed.
|
•
|
The resulting
Base Amount of each Unit is therefore $.6840
|
•
|
The
Credit Achievement Amount of each Unit is therefore $.2559.
|
•
|
The preliminary Unit Value is
the sum of the Base Amount and the Credit Achievement Amount, or
$.9399 per Unit, for an aggregate preliminary value of $9,399.00.
(10,000 Units x $.9399).
|
•
|
The $9,399.00 aggregate preliminary value for this Participant would be granted in the form of 313.300 shares of Zions Bancorporation Restricted Share Units.
|
•
|
The portion of the RSUs attributable to the Base Amount, 228.004 RSUs ($.6840/$.9399 x 313.300) would be reduced to 183.670 RSUs.
|
•
|
The portion of the RSUs attributable to the Credit Achievement Amount, 85.296 RSUs ($.2559/$.9399 x 313.300) would be unchanged, as the NCO ratio for the three-year period is less than .60%.
|
•
|
The total adjusted number of RSUs for this Participant would be 268.966. (183.670 + 85.296).
|
•
|
The value of each RSU would be $33.00, and the total value of the RSUs (before witholding taxes) would be $8,875.87 ($33.00 x 268.966).
|
(1)
|
Effective at Market Close on September 12, 2013
, amending Schedule “C”,
Investment Options
, to delete the reference to “Zions Preferred Stock C Fund (Real Time Trading Option)”, and replace it with the following:
|
•
|
Zions Preferred Stock C Fund (Real Time Trading Option) (frozen to all transactions)
|
(2)
|
Effective upon completion of the above-referenced Zions Preferred Stock C Fund liquidation
, amending Section 1,
Definitions
, to delete subsection (jj),
Zions Preferred Stock C
, and (nn),
Zions Preferred Stock C Fund
, in their entirety, and re-letter all subsequent subsections accordingly.
|
(3)
|
Effective upon completion of the above-referenced Zions Preferred Stock C Fund liquidation
, amending Section 5(f),
Zions Common Stock and Zions Preferred Stock in the Zions Bancorporation Restated Deferred Compensation Plan
, by restating the first paragraph, in its entirety, as follows:
|
(4)
|
Effective upon completion of the above-referenced Zions Preferred Stock C Fund liquidation
, amending Schedule “C”,
Investment Options
, to delete the following:
|
•
|
Zions Preferred Stock C Fund (Real Time Trading Option) (frozen to all transactions)
|
ZIONS BANCORPORATION
|
FIDELITY MANAGEMENT TRUST COMPANY
|
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
|