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•
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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”); and
|
•
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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 and fiscal imbalances in the United States and other countries, potential or actual downgrades in ratings of sovereign debt issued by the United States and other countries, and other major developments, including wars, military actions, and terrorist attacks;
|
•
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changes in financial and commodity market prices and conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including without limitation rates of business formation and growth, commercial and residential real estate development, real estate prices, and energy-related commodity prices;
|
•
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changes in markets for equity, fixed-income, commercial paper and other securities, including availability, market liquidity levels, and pricing;
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•
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changes in interest rates, the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows and competition;
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•
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acquisitions and integration of acquired businesses;
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•
|
increases in the levels of losses, customer bankruptcies, bank failures, claims, and assessments;
|
•
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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, and the FDIC, the SEC, and the CFPB;
|
•
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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;
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•
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the impact of the Dodd-Frank Act and of new international standards known as Basel III, and rules and regulations thereunder, 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;
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•
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continuing consolidation in the financial services industry;
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•
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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
|
CFPB
|
Consumer Financial Protection Bureau
|
ACL
|
Allowance for Credit Losses
|
CLTV
|
Combined Loan-to-Value Ratio
|
AFS
|
Available-for-Sale
|
CMC
|
Capital Management Committee
|
ALCO
|
Asset/Liability Committee
|
COSO
|
Committee of Sponsoring Organizations
of the Treadway Commission
|
ALLL
|
Allowance for Loan and Lease Losses
|
CRA
|
Community Reinvestment Act
|
Amegy
|
Amegy Corporation
|
CRE
|
Commercial Real Estate
|
AOCI
|
Accumulated Other Comprehensive Income
|
CSV
|
Cash Surrender Value
|
ARM
|
Adjustable Rate Mortgage
|
DB
|
Deutsche Bank AG
|
ASC
|
Accounting Standards Codification
|
DBRS
|
Dominion Bond Rating Service
|
ASU
|
Accounting Standards Update
|
DDA
|
Demand Deposit Account
|
ATM
|
Automated Teller Machine
|
DFAST
|
Dodd-Frank Annual Stress Test
|
BCBS
|
Basel Committee on Banking Supervision
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
BCF
|
Beneficial Conversion Feature
|
DTA
|
Deferred Tax Asset
|
BHC Act
|
Bank Holding Company Act
|
EITF
|
Emerging Issues Task Force
|
bps
|
basis points
|
ERMC
|
Enterprise Risk Management Committee
|
BSA
|
Bank Secrecy Act
|
EVE
|
Economic Value of Equity
|
CB&T
|
California Bank & Trust
|
FAMC
|
Federal Agricultural Mortgage Corporation,
or “Farmer Mac”
|
CCAR
|
Comprehensive Capital Analysis and Review
|
FASB
|
Financial Accounting Standards Board
|
CDO
|
Collateralized Debt Obligation
|
FDIC
|
Federal Deposit Insurance Corporation
|
CDR
|
Constant Default Rate
|
FDICIA
|
Federal Deposit Insurance Corporation Improvement Act
|
CET1
|
Common Equity Tier 1 (Basel III)
|
FHLB
|
Federal Home Loan Bank
|
FHLMC
|
Federal Home Loan Mortgage Corporation,
or “Freddie Mac”
|
OTTI
|
Other-Than-Temporary Impairment
|
FINRA
|
Financial Industry Regulatory Authority
|
Parent
|
Zions Bancorporation
|
FNMA
|
Federal National Mortgage Association,
or “Fannie Mae”
|
PCAOB
|
Public Company Accounting Oversight Board
|
FRB
|
Federal Reserve Board
|
PCI
|
Purchased Credit-Impaired
|
FTE
|
Full-time Equivalent
|
PD
|
Probability of Default
|
GAAP
|
Generally Accepted Accounting Principles
|
PEI
|
Private Equity Investment
|
GDP
|
Gross Domestic Product
|
PIK
|
Payment in Kind
|
GLB Act
|
Gramm-Leach-Bliley Act
|
REIT
|
Real Estate Investment Trust
|
HECL
|
Home Equity Credit Line
|
RSU
|
Restricted Stock Unit
|
HQLA
|
High Quality Liquid Assets
|
RULC
|
Reserve for Unfunded Lending Commitments
|
HTM
|
Held-to-Maturity
|
SBA
|
Small Business Administration
|
IFR
|
Interim Final Rule
|
SBIC
|
Small Business Investment Company
|
IFRS
|
International Financial Reporting Standards
|
SEC
|
Securities and Exchange Commission
|
LCR
|
Liquidity Coverage Ratio
|
SIFI
|
Systemically Important Financial Institution
|
LGD
|
Loss Given Default
|
SOC
|
Securitization Oversight Committee
|
LIBOR
|
London Interbank Offered Rate
|
SSU
|
Salary Stock Unit
|
LIHTC
|
Low-Income Housing Tax Credit
|
TARP
|
Troubled Asset Relief Program
|
Lockhart
|
Lockhart Funding LLC
|
TCBO
|
The Commerce Bank of Oregon
|
MD&A
|
Management’s Discussion and Analysis
|
TCBW
|
The Commerce Bank of Washington
|
NASDAQ
|
National Association of Securities Dealers Automated Quotations
|
TDR
|
Troubled Debt Restructuring
|
NAV
|
Net Asset Value
|
TRACE
|
Trade Reporting and Compliance Engine
|
NBAZ
|
National Bank of Arizona
|
TRS
|
Total Return Swap
|
NIM
|
Net Interest Margin
|
Vectra
|
Vectra Bank Colorado
|
NRSRO
|
Nationally Recognized Statistical Rating Organization
|
VIE
|
Variable Interest Entity
|
NSB
|
Nevada State Bank
|
VR
|
Volcker Rule
|
OCC
|
Office of the Comptroller of the Currency
|
T1C
|
Tier 1 Common (Basel I)
|
OCI
|
Other Comprehensive Income
|
Zions Bank
|
Zions First National Bank
|
OREO
|
Other Real Estate Owned
|
ZMFU
|
Zions Municipal Funding
|
OTC
|
Over-the-Counter
|
ZMSC
|
Zions Management Services Company
|
•
|
the requirements applicable to large bank holding companies (those with consolidated assets of greater than $50 billion) be more stringent than those applicable to other financial companies;
|
•
|
standards applicable to bank holding companies be no less stringent than those applied to insured depository institutions; and
|
•
|
bank regulatory agencies implement countercyclical elements in their capital requirements.
|
•
|
The assessment base for federal deposit insurance was changed to consolidated assets less tangible capital instead of the amount of insured deposits.
|
•
|
The federal prohibition on the payment of interest on business transaction accounts was repealed.
|
•
|
The FRB was authorized to issue regulations governing debit card interchange fees.
|
•
|
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; and
|
•
|
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).
|
•
|
Requirements that the Parent serve as a source of strength for its subsidiary banks. The FRB has a policy that a bank holding company is expected to act as a source of financial and managerial strength to each of its subsidiary banks and, under appropriate circumstances, to commit resources to support each subsidiary bank. The Dodd-Frank Act codifies this policy as a statutory requirement.
|
•
|
Limitations on dividends payable by subsidiaries. A significant portion of the Parent’s cash, which is used to pay dividends on our common and preferred stock and to pay principal and interest on our debt obligations, is derived from dividends paid to the Parent by its subsidiary banks. These dividends are subject to various legal and regulatory restrictions. See Note 18 of the Notes to Consolidated Financial Statements.
|
•
|
Limitations on dividends payable to shareholders. The Parent’s ability to pay dividends on both its common and preferred stock may be subject to regulatory restrictions, including the requirement that they be included in a stress test and capital plan to which the FRB has not objected. See discussion under “Liquidity Management Actions” on page 81.
|
•
|
Cross-guarantee requirements. All of the Parent’s subsidiary banks are insured by the FDIC. Each commonly controlled FDIC-insured bank can be held liable for any losses incurred, or reasonably expected to be incurred, by the FDIC due to another commonly controlled FDIC-insured bank being placed into receivership, and for any assistance provided by the FDIC to another commonly controlled FDIC-insured bank that is subject to certain conditions indicating that receivership is likely to occur in the absence of regulatory assistance.
|
•
|
Safety and soundness requirements. Federal and state laws require that our banks be operated in a safe and sound manner. We are subject to additional safety and soundness standards prescribed in the Federal Deposit Insurance Corporate Improvement Act of 1991, including standards related to internal controls, information systems, internal audit, loan documentation, credit underwriting, interest rate exposure, asset growth and compensation, as well as other operational and management standards deemed appropriate by the federal banking agencies. The safety and soundness requirements give bank regulatory agencies significant latitude in their supervisory authority over us.
|
•
|
Requirements for approval of acquisitions and activities and restrictions on other activities. Prior approval of the FRB is required under the BHC Act for a financial holding company to acquire or hold more than a 5% voting interest in any bank, to acquire substantially all the assets of a bank or to merge with another financial or bank holding company. The BHC Act also requires approval for certain nonbanking acquisitions, restricts the activities of bank holding companies that are not financial holding companies to banking, managing or controlling banks and other activities that the FRB has determined to be so closely related to banking as to be a proper incident thereto, and restricts the nonbanking activities of a financial holding company to those that are permitted for financial holding companies or that have been determined by the FRB to be financial in nature, incidental to financial activities, or complementary to a financial activity. Laws and regulations governing national and state-chartered banks contain similar provisions concerning acquisitions and activities.
|
•
|
Limitations on the amount of loans to a borrower and its affiliates.
|
•
|
Limitations on transactions with affiliates. The Dodd-Frank Act significantly expanded the coverage and scope of the limitations on affiliate transactions within a banking organization.
|
•
|
Restrictions on the nature and amount of any investments and ability to underwrite certain securities.
|
•
|
Requirements for opening of branches and the acquisition of other financial entities.
|
•
|
Fair lending and truth in lending requirements to provide equal access to credit and to protect consumers in credit transactions.
|
•
|
Broker-dealer and investment advisory regulations. Certain of our subsidiaries are broker-dealers that engage in securities underwriting and other broker-dealer activities. These companies are registered with the SEC and are members of FINRA. Certain other subsidiaries are registered investment advisers under the Investment Advisers Act of 1940, as amended, and as such are supervised by the SEC. They are also subject to various U.S. federal and state laws and regulations. These laws and regulations generally grant supervisory agencies broad administrative powers, including the power to limit or restrict the carrying on of business for failure to comply with such laws.
|
•
|
Provisions of the GLB Act and other federal and state laws dealing with privacy for nonpublic personal information of individual customers.
|
•
|
CRA requirements. The CRA requires banks to help serve the credit needs in their communities, including providing credit to low and moderate income individuals. If the Company or its subsidiaries fail to adequately serve their communities, penalties may be imposed including denials of applications to add branches, relocate, add subsidiaries and affiliates, and merge with or purchase other financial institutions.
|
•
|
Anti-money laundering regulations. The BSA, Title III of the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA Patriot Act”), and other federal laws require financial institutions to assist U.S. Government agencies in detecting and preventing money laundering and other illegal acts by maintaining policies, procedures and controls designed to detect and report money laundering, terrorist financing, and other suspicious activity.
|
•
|
affects the levels of capital and liquidity with which the Company must operate and how it plans capital and liquidity levels (including a phased-in elimination of the Company’s existing trust preferred securities as Tier 1 capital);
|
•
|
subjects the Company to new and/or higher fees paid to various regulatory entities, including but not limited to deposit insurance fees to the FDIC;
|
•
|
impacts the Company’s ability to invest in certain types of entities or engage in certain activities;
|
•
|
impacts a number of the Company’s business strategies;
|
•
|
requires us to incur the cost of developing substantial heightened risk management policies and infrastructure;
|
•
|
regulates the pricing of certain of our products and services and restricts the revenue that the Company generates from certain businesses;
|
•
|
subjects the Company to new capital planning actions, including stress testing or similar actions and timing expectations for capital-raising;
|
•
|
subjects the Company to supervision by the CFPB, with very broad rule-making and enforcement authorities;
|
•
|
grants authority to state agencies to enforce state and federal laws against national banks;
|
•
|
subjects the Company to new and different litigation and regulatory enforcement risks; and
|
•
|
limits the manner in which compensation is paid to executive officers and employees generally.
|
|
|
2014
|
|
2013
|
||||||||||||
|
|
High
|
|
Low
|
|
High
|
|
Low
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
1st Quarter
|
|
$
|
33.33
|
|
|
$
|
27.82
|
|
|
$
|
25.86
|
|
|
$
|
21.56
|
|
2nd Quarter
|
|
31.87
|
|
|
27.65
|
|
|
29.41
|
|
|
23.10
|
|
||||
3rd Quarter
|
|
30.89
|
|
|
27.44
|
|
|
31.40
|
|
|
26.79
|
|
||||
4th Quarter
|
|
29.93
|
|
|
25.02
|
|
|
30.13
|
|
|
26.89
|
|
|
|
1st Quarter
|
|
2nd Quarter
|
|
3rd Quarter
|
|
4th Quarter
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
2014
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
2013
|
|
0.01
|
|
|
0.04
|
|
|
0.04
|
|
|
0.04
|
|
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
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
October
|
|
|
985
|
|
|
|
$
|
28.80
|
|
|
|
—
|
|
|
|
|
$
|
—
|
|
|
November
|
|
|
316
|
|
|
|
29.06
|
|
|
|
—
|
|
|
|
|
—
|
|
|
||
December
|
|
|
1,057
|
|
|
|
27.51
|
|
|
|
—
|
|
|
|
|
—
|
|
|
||
Fourth quarter
|
|
|
2,358
|
|
|
|
28.26
|
|
|
|
—
|
|
|
|
|
|
|
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Zions Bancorporation
|
|
100.0
|
|
|
189.2
|
|
|
127.4
|
|
|
167.8
|
|
|
235.9
|
|
|
225.8
|
|
KBW Bank Index
|
|
100.0
|
|
|
123.3
|
|
|
94.9
|
|
|
125.8
|
|
|
172.9
|
|
|
188.9
|
|
S&P 500
|
|
100.0
|
|
|
114.8
|
|
|
117.2
|
|
|
135.8
|
|
|
179.4
|
|
|
203.6
|
|
FINANCIAL HIGHLIGHTS
|
|||||||||||||||||||||||
(Dollar amounts in millions, except per share amounts)
|
|
2014/2013 Change
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||
For the Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income
|
|
-1
|
%
|
|
$
|
1,680.0
|
|
|
$
|
1,696.3
|
|
|
$
|
1,731.9
|
|
|
$
|
1,756.2
|
|
|
$
|
1,714.3
|
|
Noninterest income
|
|
+51
|
%
|
|
508.6
|
|
|
337.4
|
|
|
419.9
|
|
|
498.2
|
|
|
453.6
|
|
|||||
Total revenue
|
|
+8
|
%
|
|
2,188.6
|
|
|
2,033.7
|
|
|
2,151.8
|
|
|
2,254.4
|
|
|
2,167.9
|
|
|||||
Provision for loan losses
|
|
-13
|
%
|
|
(98.1
|
)
|
|
(87.1
|
)
|
|
14.2
|
|
|
74.5
|
|
|
852.7
|
|
|||||
Noninterest expense
|
|
-3
|
%
|
|
1,665.3
|
|
|
1,714.4
|
|
|
1,595.0
|
|
|
1,658.6
|
|
|
1,718.3
|
|
|||||
Impairment loss on goodwill
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|||||
Income (loss) before income taxes
|
|
+53
|
%
|
|
621.4
|
|
|
406.4
|
|
|
541.6
|
|
|
521.3
|
|
|
(403.1
|
)
|
|||||
Income taxes (benefit)
|
|
+56
|
%
|
|
222.9
|
|
|
142.9
|
|
|
193.4
|
|
|
198.6
|
|
|
(106.8
|
)
|
|||||
Net income (loss)
|
|
+51
|
%
|
|
398.5
|
|
|
263.5
|
|
|
348.2
|
|
|
322.7
|
|
|
(296.3
|
)
|
|||||
Net income (loss) applicable to noncontrolling interests
|
|
-100
|
%
|
|
—
|
|
|
(0.3
|
)
|
|
(1.3
|
)
|
|
(1.1
|
)
|
|
(3.6
|
)
|
|||||
Net income (loss) applicable to controlling interest
|
|
+51
|
%
|
|
398.5
|
|
|
263.8
|
|
|
349.5
|
|
|
323.8
|
|
|
(292.7
|
)
|
|||||
Net earnings (loss) applicable to common shareholders
|
|
+11
|
%
|
|
326.6
|
|
|
294.0
|
|
|
178.6
|
|
|
153.4
|
|
|
(412.5
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net earnings (loss) – diluted
|
|
+6
|
%
|
|
1.68
|
|
|
1.58
|
|
|
0.97
|
|
|
0.83
|
|
|
(2.48
|
)
|
|||||
Net earnings (loss) – basic
|
|
+6
|
%
|
|
1.68
|
|
|
1.58
|
|
|
0.97
|
|
|
0.83
|
|
|
(2.48
|
)
|
|||||
Dividends declared
|
|
+23
|
%
|
|
0.16
|
|
|
0.13
|
|
|
0.04
|
|
|
0.04
|
|
|
0.04
|
|
|||||
Book value
1
|
|
+6
|
%
|
|
31.35
|
|
|
29.57
|
|
|
26.73
|
|
|
25.02
|
|
|
25.12
|
|
|||||
Market price – end
|
|
|
|
28.51
|
|
|
29.96
|
|
|
21.40
|
|
|
16.28
|
|
|
24.23
|
|
||||||
Market price – high
|
|
|
|
33.33
|
|
|
31.40
|
|
|
22.81
|
|
|
25.60
|
|
|
30.29
|
|
||||||
Market price – low
|
|
|
|
25.02
|
|
|
21.56
|
|
|
16.40
|
|
|
13.18
|
|
|
12.88
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
At Year-End
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Assets
|
|
+2
|
%
|
|
57,209
|
|
|
56,031
|
|
|
55,512
|
|
|
53,149
|
|
|
51,035
|
|
|||||
Net loans and leases
|
|
+3
|
%
|
|
40,064
|
|
|
39,043
|
|
|
37,665
|
|
|
37,258
|
|
|
36,830
|
|
|||||
Deposits
|
|
+3
|
%
|
|
47,847
|
|
|
46,362
|
|
|
46,133
|
|
|
42,876
|
|
|
40,935
|
|
|||||
Long-term debt
|
|
-52
|
%
|
|
1,092
|
|
|
2,274
|
|
|
2,337
|
|
|
1,954
|
|
|
1,943
|
|
|||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
—
|
%
|
|
1,004
|
|
|
1,004
|
|
|
1,128
|
|
|
2,377
|
|
|
2,057
|
|
|||||
Common equity
|
|
+17
|
%
|
|
6,366
|
|
|
5,461
|
|
|
4,924
|
|
|
4,608
|
|
|
4,591
|
|
|||||
Noncontrolling interests
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Return on average assets
|
|
|
|
0.71
|
%
|
|
0.48
|
%
|
|
0.66
|
%
|
|
0.63
|
%
|
|
(0.57
|
)%
|
||||||
Return on average common equity
|
|
|
|
5.42
|
%
|
|
5.73
|
%
|
|
3.76
|
%
|
|
3.32
|
%
|
|
(9.26
|
)%
|
||||||
Tangible return on average tangible common equity
|
|
|
|
6.70
|
%
|
|
7.44
|
%
|
|
5.18
|
%
|
|
4.72
|
%
|
|
(11.88
|
)%
|
||||||
Net interest margin
|
|
|
|
3.26
|
%
|
|
3.36
|
%
|
|
3.57
|
%
|
|
3.77
|
%
|
|
3.70
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital Ratios
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity to assets
|
|
|
|
12.88
|
%
|
|
11.54
|
%
|
|
10.90
|
%
|
|
13.14
|
%
|
|
13.02
|
%
|
||||||
Tier 1 common
|
|
|
|
11.92
|
%
|
|
10.18
|
%
|
|
9.80
|
%
|
|
9.57
|
%
|
|
8.95
|
%
|
||||||
Tier 1 leverage
|
|
|
|
11.82
|
%
|
|
10.48
|
%
|
|
10.96
|
%
|
|
13.40
|
%
|
|
12.56
|
%
|
||||||
Tier 1 risk-based capital
|
|
|
|
14.47
|
%
|
|
12.77
|
%
|
|
13.38
|
%
|
|
16.13
|
%
|
|
14.78
|
%
|
||||||
Total risk-based capital
|
|
|
|
16.27
|
%
|
|
14.67
|
%
|
|
15.05
|
%
|
|
18.06
|
%
|
|
17.15
|
%
|
||||||
Tangible common equity
|
|
|
|
9.48
|
%
|
|
8.02
|
%
|
|
7.09
|
%
|
|
6.77
|
%
|
|
6.99
|
%
|
||||||
Tangible equity
|
|
|
|
11.27
|
%
|
|
9.85
|
%
|
|
9.15
|
%
|
|
11.33
|
%
|
|
11.10
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Selected Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average common and common-equivalent shares
(in thousands)
|
|
|
|
192,789
|
|
|
184,297
|
|
|
183,236
|
|
|
182,605
|
|
|
166,054
|
|
||||||
Common dividend payout ratio
|
|
|
|
9.56
|
%
|
|
8.20
|
%
|
|
4.14
|
%
|
|
4.80
|
%
|
|
na
|
|
||||||
Full-time equivalent employees
|
|
|
|
10,462
|
|
|
10,452
|
|
|
10,368
|
|
|
10,606
|
|
|
10,524
|
|
||||||
Commercial banking offices
|
|
|
|
460
|
|
|
469
|
|
|
480
|
|
|
486
|
|
|
495
|
|
1
|
At year-end.
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
As of December 31, 2014, the Company was the 16
th
largest domestic bank holding company in terms of deposits and is included in the S&P 500 and NASDAQ Financial 100 indices.
|
•
|
At December 31, 2014, the Company operated banking businesses through 460 domestic branches in eleven western and southwestern states.
|
•
|
The Company ranked 4th in small business lending of large institutions in the Small Business Administration’s “Small Business Lending in the United States 2013” report released in December, 2014.
|
•
|
The Company has been awarded numerous “Excellence” awards by Greenwich Associates, having received 12 awards for the 2013 survey; only 12 U.S. banks were awarded more than 10 excellence awards. The 2014 awards were not available at the time of publication for this document.
|
•
|
Revenues and profits are primarily derived from commercial customers.
|
•
|
The Company also emphasizes mortgage banking, wealth management and brokerage services.
|
•
|
focus on geographies representing growth markets;
|
•
|
maintain a sustainable competitive advantage over large national and global banks by keeping many decisions that affect customers local;
|
•
|
maintain a sustainable competitive advantage over community banks by delivering superior products, realizing productivity and efficiencies derived from economies of scale, and providing a lower cost of capital; and
|
•
|
centralize and standardize policies and oversight of key risks, technology and operations.
|
•
|
GDP growth in our footprint has exceeded nominal U.S. GDP by an average of 1.2% per year (compounded) over the last 10 years; i.e., from 2003-2013, nominal U.S. GDP grew by 3.9%, while nominal GDP in Zions’ footprint (weighted by December 31, 2014 assets) grew by 5.1%.
|
•
|
Job creation within the Zions’ footprint has greatly exceeded the national rate during the past 10 years. U.S. nonfarm payroll jobs increased by 6.2% during the last 10 years; however, job creation in Zions’ footprint increased by 15.2%.
|
•
|
branding and marketing strategies;
|
•
|
product offerings and pricing;
|
•
|
credit decisions (within the limits of established corporate policy); and
|
•
|
relationship management strategies and the integration of various business lines.
|
•
|
Use the combined scale of all of our banking operations to create a broad product offering;
|
•
|
Utilize our larger capital base and breadth of product offerings to lend to business customers of a wide range of sizes, from small businesses to large companies;
|
•
|
For certain products for which economies of scale are believed to be critical, we “manufacture” the product centrally or are able to obtain services from third-party vendors at lower costs due to volume-driven pricing power; and
|
•
|
Take advantage of our combined size and diversification that affords us superior access to the capital markets for debt and equity financing; over the long term, this advantage has historically, and should in the future, result in a lower cost of capital than our subsidiary banks could achieve on their own.
|
•
|
The Company conducts regular stress testing of the loan portfolio using multiple economic scenarios. Such tests help to identify pockets of risk and enable management to reduce risk.
|
•
|
The Company oversees credit risk using a single credit policy and specialists in business, commercial real estate, and consumer lending; additionally the Company’s manages concentration risk.
|
•
|
The Company regularly measures interest rate and liquidity risk and uses capital markets instruments to adjust risks to stay within Board-approved levels.
|
•
|
The Company centrally monitors and oversees operational risk. Centralized internal audit, credit examination, and compliance functions test compliance with established policies.
|
•
|
Net income to common shareholders improved in 2014. Two major items had a significant adverse impact on profitability during the year: 1) while debt extinguishment cost related to high-cost debt was lower than it was in 2013, the Company still had $44.4 million of debt extinguishment cost in 2014, and 2) elevated salaries and employee benefits due largely to the Company’s initiative to streamline its back office and accounting. Two major items had a significant favorable impact on profitability in 2014: 1) the negative provision for loan losses and unfunded lending commitments of $106.7 million (which is not expected to continue in 2015), and 2) the reduction of interest expense on long-term debt from the debt redemptions and maturities.
|
•
|
Tier 1 common (“T1C”) capital plus reserves for credit losses improved and ranks well above the peer median (see Chart 1). In July of 2014 the Company issued $525 million of common equity in response to the CCAR results; as a result of this action, as well as increased retained earnings, the T1C capital ratio further improved to 11.92% at December 31, 2014.
|
•
|
Additionally, we made significant progress towards reducing the cost of debt. In 2014, we reduced long-term debt by $1.2 billion through tender offers, early calls and redemptions at maturity. As a result of these actions, we estimate that interest expense on long-term debt in 2015 will decline by approximately $53 million.
|
•
|
Asset quality improved significantly; nonperforming lending-related assets declined 28% in 2014 (see Chart 2), and net charge-offs declined to $42 million in 2014 compared to $52 million in 2013. As a result, credit costs, including the provision for loan losses and unfunded lending commitments, other real estate expense and credit-related expense, declined approximately 16%.
|
•
|
Despite a difficult interest rate environment and modest loan growth, net interest income only declined 1.0% in 2014 compared to 2013 (see Chart 3), and grew slightly in the fourth quarter of 2014. The decline was due to reduced income from FDIC-supported loans as that portfolio, purchased in 2009, winds down.
|
•
|
During 2014 we undertook considerable actions to reduce risk by selling a significant portion of the Company’s construction and land development loans, as well as significantly reducing the size of the CDO portfolio.
|
•
|
Tangible book value per common share improved by 9.8% in 2014, compared to 2013, due to increased retained earnings and a reduction in OCI due to CDO sales and improvement in the market value of the remaining CDO securities.
|
•
|
Although net income applicable to common shareholders improved in 2014, the additional common equity issued in response to the Federal Reserve 2014 stress test results for the Company and additional retained earnings meant that returns on common equity declined. For example, the tangible return on tangible common equity declined to 6.7% in 2014 from 7.4% in 2013.
|
•
|
Although loans increased somewhat compared to 2013, the growth was very modest. Loans increased on a net basis by $1.0 billion, or 2.6%, compared to December 31, 2013, including increases of $704 million in commercial and industrial and $459 million in 1-4 family residential. As noted, the Company particularly constrained the growth in construction and land development loans in 2014 for risk management purposes. We also continued to experience weakness resulting from attrition in our National Real Estate Group owner-occupied loan portfolio, which is expected to continue. This business is a wholesale business and depends upon loan referrals from other community banking institutions; due to generally soft loan demand nationally, many banks are retaining, rather than selling, their loan production.
|
•
|
Our net interest margin declined to 3.26% in 2014 from 3.36% in 2013, which was due primarily to a reduction in FDIC-supported loan income as that portfolio continues to wind down, competitive pricing pressure, and improvement in the underlying quality of our borrowers’ financial condition (see discussion on asset quality on page 72). Nevertheless, our NIM continued to remain reasonably strong relative to other peer banks, and actually improved slightly in the fourth quarter of 2014 compared to the third quarter.
|
•
|
Redemption expenses of high-cost debt weighed significantly on profitability. The high cost of debt is a byproduct of our efforts to stabilize the Company’s capital base and funding during the recent recession. While significant debt refinancing activities were completed in 2014, some additional relatively expensive debt that matures in 2015 remains.
|
•
|
Noninterest expense levels are elevated and are expected to remain higher than normal as we continue to implement several technology initiatives that are designed to streamline the efficiency of the Company. Upon completion of these initiatives, we expect expenses relative to revenues to improve meaningfully.
|
•
|
Stabilize and improve net interest margin by:
|
◦
|
Continuing to incrementally deploy the Company’s excess cash into higher yielding, short-to-medium duration HQLA, which was begun in the latter half of 2014.
|
◦
|
Complete the retirement of expensive long-term debt that arose from actions taken during the economic crisis.
|
•
|
Continue to emphasize loan growth, particularly through continued strong business lending and additional growth in residential mortgage lending; and
|
•
|
Continue efforts to increase fee income.
|
•
|
In addition to the retirement of debt mentioned previously, over time seek to alter the mix of capital in our capital structure; that mix currently includes relatively higher levels of preferred stock than peer institutions.
|
•
|
Maintain strong levels of asset quality. We expect energy loans to experience deterioration although losses are currently expected to be modest; however, we expect continued modest improvement in other segments of the loan portfolio.
|
•
|
Continue to invest in previously announced major upgrades to the Company’s systems, while maintaining noninterest expenses at or near current levels.
|
•
|
Pursue further opportunities for operating efficiencies.
|
•
|
Continue responsible risk management improvements.
|
Driver
|
|
2014
|
|
2013
|
|
Change
better/(worse)
|
|||||
|
|
|
|
|
|
|
|||||
|
|
(Amounts in billions)
|
|
|
|||||||
Average net loans and leases
|
|
$
|
39.5
|
|
|
$
|
38.1
|
|
|
4
|
%
|
Average money market investments
|
|
8.2
|
|
|
8.8
|
|
|
(7
|
)%
|
||
Average noninterest-bearing deposits
|
|
19.6
|
|
|
18.0
|
|
|
9
|
%
|
||
Average total deposits
|
|
46.3
|
|
|
45.3
|
|
|
2
|
%
|
||
|
|
|
|
|
|
|
|||||
|
|
(Amounts in millions)
|
|
|
|||||||
Net interest income
|
|
$
|
1,680.0
|
|
|
$
|
1,696.3
|
|
|
(1
|
)%
|
Provision for loan losses
|
|
(98.1
|
)
|
|
(87.1
|
)
|
|
13
|
%
|
||
Net impairment losses on investment securities
|
|
—
|
|
|
(165.1
|
)
|
|
100
|
%
|
||
Other noninterest income
|
|
508.6
|
|
|
502.5
|
|
|
1
|
%
|
||
Noninterest expense
|
|
1,665.3
|
|
|
1,714.4
|
|
|
3
|
%
|
||
|
|
|
|
|
|
|
|||||
Nonaccrual loans
1
|
|
307
|
|
|
406
|
|
|
24
|
%
|
||
|
|
|
|
|
|
|
|||||
Net interest margin
|
|
3.26
|
%
|
|
3.36
|
%
|
|
(10)bps
|
|
||
Ratio of nonperforming lending-related assets to net loans and leases and other real estate owned
2
|
|
0.81
|
%
|
|
1.15
|
%
|
|
34 bps
|
|
||
Ratio of total allowance for credit losses to net loans and leases outstanding
|
|
1.71
|
%
|
|
2.14
|
%
|
|
43 bps
|
|
||
Tier 1 common capital ratio
|
|
11.92
|
%
|
|
10.18
|
%
|
|
174 bps
|
|
•
|
selection of comparable publicly traded companies based on location, size, and business focus and composition;
|
•
|
selection of market comparable acquisition transactions based on location, size, business focus and composition, and date of the transaction;
|
•
|
the discount rate, which is based on Zions’ estimate of its cost of capital, applied to future cash flows;
|
•
|
the projections of future earnings and cash flows of the reporting unit;
|
•
|
the relative weight given to the valuations derived by the three methods described; and
|
•
|
the control premium associated with reporting units.
|
•
|
$165.1 million decrease in net impairment losses on investment securities;
|
•
|
$75.8 million decrease in debt extinguishment cost;
|
•
|
$62.8 million decrease in interest on long-term debt;
|
•
|
$23.6 million decrease in preferred stock dividends;
|
•
|
$19.3 million decrease in other noninterest expense; and
|
•
|
$13.3 million increase in fixed income securities gains.
|
•
|
$125.7 million decrease in preferred stock redemption benefit;
|
•
|
$85.0 million decrease in interest and fees on loans;
|
•
|
$80.0 million increase in income tax expense; and
|
•
|
$43.5 million increase in salaries and employee benefits.
|
•
|
$125.7 million benefit from preferred stock redemption;
|
•
|
$101.4 million decrease in the provision for loan losses;
|
•
|
$75.4 million reduction in preferred stock dividends;
|
•
|
$21.5 million decrease in the provision for unfunded lending commitments; and
|
•
|
$18.0 million decline in other real estate expense.
|
•
|
$120.2 million increase in debt extinguishment cost;
|
•
|
$61.1 million increase in net impairment losses on investment securities;
|
•
|
$35.6 million decrease in net interest income;
|
•
|
$27.3 million increase in salaries and employee benefits; and
|
•
|
$25.3 million increase in other noninterest expense.
|
•
|
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.
|
|
|
2014
|
|
2013
|
||||||||||||||||||
(Amounts in millions)
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
|
$
|
8,211
|
|
|
$
|
21.4
|
|
|
0.26
|
%
|
|
$
|
8,848
|
|
|
$
|
23.4
|
|
|
0.26
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
|
609
|
|
|
32.1
|
|
|
5.27
|
|
|
762
|
|
|
37.4
|
|
|
4.91
|
|
||||
Available-for-sale
|
|
3,472
|
|
|
75.3
|
|
|
2.17
|
|
|
3,107
|
|
|
72.2
|
|
|
2.32
|
|
||||
Trading account
|
|
61
|
|
|
2.0
|
|
|
3.22
|
|
|
32
|
|
|
1.0
|
|
|
3.29
|
|
||||
Total securities
|
|
4,142
|
|
|
109.4
|
|
|
2.64
|
|
|
3,901
|
|
|
110.6
|
|
|
2.84
|
|
||||
Loans held for sale
|
|
128
|
|
|
4.6
|
|
|
3.63
|
|
|
149
|
|
|
5.4
|
|
|
3.58
|
|
||||
Loans and leases
2
|
|
39,523
|
|
|
1,733.7
|
|
|
4.39
|
|
|
38,107
|
|
|
1,817.5
|
|
|
4.77
|
|
||||
Total interest-earning assets
|
|
52,004
|
|
|
1,869.1
|
|
|
3.59
|
|
|
51,005
|
|
|
1,956.9
|
|
|
3.84
|
|
||||
Cash and due from banks
|
|
897
|
|
|
|
|
|
|
1,016
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(690
|
)
|
|
|
|
|
|
(830
|
)
|
|
|
|
|
||||||||
Goodwill
|
|
1,014
|
|
|
|
|
|
|
1,014
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
|
31
|
|
|
|
|
|
|
44
|
|
|
|
|
|
||||||||
Other assets
|
|
2,634
|
|
|
|
|
|
|
2,693
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
55,890
|
|
|
|
|
|
|
$
|
54,942
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Saving and money market
|
|
$
|
23,532
|
|
|
37.0
|
|
|
0.16
|
|
|
$
|
22,891
|
|
|
39.7
|
|
|
0.17
|
|
||
Time
|
|
2,490
|
|
|
11.5
|
|
|
0.46
|
|
|
2,792
|
|
|
15.9
|
|
|
0.57
|
|
||||
Foreign
|
|
642
|
|
|
1.2
|
|
|
0.18
|
|
|
1,662
|
|
|
3.3
|
|
|
0.20
|
|
||||
Total interest-bearing deposits
|
|
26,664
|
|
|
49.7
|
|
|
0.19
|
|
|
27,345
|
|
|
58.9
|
|
|
0.22
|
|
||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds purchased and other short-term borrowings
|
|
223
|
|
|
0.3
|
|
|
0.11
|
|
|
278
|
|
|
0.3
|
|
|
0.11
|
|
||||
Long-term debt
|
|
1,811
|
|
|
123.0
|
|
|
6.79
|
|
|
2,274
|
|
|
185.9
|
|
|
8.17
|
|
||||
Total borrowed funds
|
|
2,034
|
|
|
123.3
|
|
|
6.06
|
|
|
2,552
|
|
|
186.2
|
|
|
7.29
|
|
||||
Total interest-bearing liabilities
|
|
28,698
|
|
|
173.0
|
|
|
0.60
|
|
|
29,897
|
|
|
245.1
|
|
|
0.82
|
|
||||
Noninterest-bearing deposits
|
|
19,609
|
|
|
|
|
|
|
17,971
|
|
|
|
|
|
||||||||
Other liabilities
|
|
555
|
|
|
|
|
|
|
586
|
|
|
|
|
|
||||||||
Total liabilities
|
|
48,862
|
|
|
|
|
|
|
48,454
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
1,004
|
|
|
|
|
|
|
1,360
|
|
|
|
|
|
||||||||
Common equity
|
|
6,024
|
|
|
|
|
|
|
5,130
|
|
|
|
|
|
||||||||
Controlling interest shareholders’ equity
|
|
7,028
|
|
|
|
|
|
|
6,490
|
|
|
|
|
|
||||||||
Noncontrolling interests
|
|
—
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
||||||||
Total shareholders’ equity
|
|
7,028
|
|
|
|
|
|
|
6,488
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
|
$
|
55,890
|
|
|
|
|
|
|
$
|
54,942
|
|
|
|
|
|
||||||
Spread on average interest-bearing funds
|
|
|
|
|
|
2.99
|
%
|
|
|
|
|
|
3.02
|
%
|
||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
|
$
|
1,696.1
|
|
|
3.26
|
%
|
|
|
|
$
|
1,711.8
|
|
|
3.36
|
%
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||||
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
rate
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$
|
7,930
|
|
|
$
|
21.1
|
|
|
0.27
|
%
|
|
$
|
5,356
|
|
|
$
|
13.8
|
|
|
0.26
|
%
|
|
$
|
4,085
|
|
|
$
|
11.0
|
|
|
0.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
774
|
|
|
42.3
|
|
|
5.47
|
|
|
818
|
|
|
44.7
|
|
|
5.47
|
|
|
866
|
|
|
44.3
|
|
|
5.12
|
|
||||||
3,047
|
|
|
94.2
|
|
|
3.09
|
|
|
3,895
|
|
|
89.6
|
|
|
2.30
|
|
|
3,416
|
|
|
91.5
|
|
|
2.68
|
|
||||||
24
|
|
|
0.7
|
|
|
3.13
|
|
|
58
|
|
|
2.0
|
|
|
3.45
|
|
|
61
|
|
|
2.2
|
|
|
3.64
|
|
||||||
3,845
|
|
|
137.2
|
|
|
3.57
|
|
|
4,771
|
|
|
136.3
|
|
|
2.86
|
|
|
4,343
|
|
|
138.0
|
|
|
3.18
|
|
||||||
187
|
|
|
6.6
|
|
|
3.51
|
|
|
146
|
|
|
5.7
|
|
|
3.94
|
|
|
187
|
|
|
8.9
|
|
|
4.78
|
|
||||||
37,037
|
|
|
1,892.0
|
|
|
5.11
|
|
|
36,897
|
|
|
2,053.0
|
|
|
5.56
|
|
|
38,326
|
|
|
2,170.5
|
|
|
5.66
|
|
||||||
48,999
|
|
|
2,056.9
|
|
|
4.20
|
|
|
47,170
|
|
|
2,208.8
|
|
|
4.68
|
|
|
46,941
|
|
|
2,328.4
|
|
|
4.96
|
|
||||||
1,102
|
|
|
|
|
|
|
1,056
|
|
|
|
|
|
|
1,214
|
|
|
|
|
|
||||||||||||
(986
|
)
|
|
|
|
|
|
(1,272
|
)
|
|
|
|
|
|
(1,556
|
)
|
|
|
|
|
||||||||||||
1,015
|
|
|
|
|
|
|
1,015
|
|
|
|
|
|
|
1,015
|
|
|
|
|
|
||||||||||||
60
|
|
|
|
|
|
|
78
|
|
|
|
|
|
|
101
|
|
|
|
|
|
||||||||||||
3,089
|
|
|
|
|
|
|
3,363
|
|
|
|
|
|
|
3,912
|
|
|
|
|
|
||||||||||||
$
|
53,279
|
|
|
|
|
|
|
$
|
51,410
|
|
|
|
|
|
|
$
|
51,627
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$
|
22,061
|
|
|
52.3
|
|
|
0.24
|
|
|
$
|
21,476
|
|
|
84.8
|
|
|
0.39
|
|
|
$
|
22,039
|
|
|
126.5
|
|
|
0.57
|
|
|||
3,208
|
|
|
23.1
|
|
|
0.72
|
|
|
3,750
|
|
|
35.6
|
|
|
0.95
|
|
|
4,747
|
|
|
59.8
|
|
|
1.26
|
|
||||||
1,493
|
|
|
4.7
|
|
|
0.31
|
|
|
1,515
|
|
|
8.1
|
|
|
0.53
|
|
|
1,626
|
|
|
9.8
|
|
|
0.60
|
|
||||||
26,762
|
|
|
80.1
|
|
|
0.30
|
|
|
26,741
|
|
|
128.5
|
|
|
0.48
|
|
|
28,412
|
|
|
196.1
|
|
|
0.69
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
499
|
|
|
1.4
|
|
|
0.28
|
|
|
832
|
|
|
6.7
|
|
|
0.80
|
|
|
1,149
|
|
|
12.5
|
|
|
1.09
|
|
||||||
2,234
|
|
|
225.2
|
|
|
10.08
|
|
|
1,913
|
|
|
297.2
|
|
|
15.54
|
|
|
1,980
|
|
|
383.8
|
|
|
19.38
|
|
||||||
2,733
|
|
|
226.6
|
|
|
8.29
|
|
|
2,745
|
|
|
303.9
|
|
|
11.07
|
|
|
3,129
|
|
|
396.3
|
|
|
12.67
|
|
||||||
29,495
|
|
|
306.7
|
|
|
1.04
|
|
|
29,486
|
|
|
432.4
|
|
|
1.47
|
|
|
31,541
|
|
|
592.4
|
|
|
1.88
|
|
||||||
16,668
|
|
|
|
|
|
|
14,531
|
|
|
|
|
|
|
13,318
|
|
|
|
|
|
||||||||||||
605
|
|
|
|
|
|
|
523
|
|
|
|
|
|
|
576
|
|
|
|
|
|
||||||||||||
46,768
|
|
|
|
|
|
|
44,540
|
|
|
|
|
|
|
45,435
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,768
|
|
|
|
|
|
|
2,257
|
|
|
|
|
|
|
1,732
|
|
|
|
|
|
||||||||||||
4,745
|
|
|
|
|
|
|
4,614
|
|
|
|
|
|
|
4,452
|
|
|
|
|
|
||||||||||||
6,513
|
|
|
|
|
|
|
6,871
|
|
|
|
|
|
|
6,184
|
|
|
|
|
|
||||||||||||
(2
|
)
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
8
|
|
|
|
|
|
||||||||||||
6,511
|
|
|
|
|
|
|
6,870
|
|
|
|
|
|
|
6,192
|
|
|
|
|
|
||||||||||||
$
|
53,279
|
|
|
|
|
|
|
$
|
51,410
|
|
|
|
|
|
|
$
|
51,627
|
|
|
|
|
|
|||||||||
|
|
|
|
3.16
|
%
|
|
|
|
|
|
3.21
|
%
|
|
|
|
|
|
3.08
|
%
|
||||||||||||
|
|
$
|
1,750.2
|
|
|
3.57
|
%
|
|
|
|
$
|
1,776.4
|
|
|
3.77
|
%
|
|
|
|
$
|
1,736.0
|
|
|
3.70
|
%
|
|
|
2014 over 2013
|
|
2013 over 2012
|
||||||||||||||||||||
|
|
Changes due to
|
|
Total changes
|
|
Changes due to
|
|
Total changes
|
||||||||||||||||
(In millions)
|
|
Volume
|
|
Rate
1
|
|
|
Volume
|
|
Rate
1
|
|
||||||||||||||
INTEREST-EARNING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market investments
|
|
$
|
(1.6
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
2.7
|
|
|
$
|
(0.4
|
)
|
|
$
|
2.3
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity
|
|
(7.5
|
)
|
|
2.2
|
|
|
(5.3
|
)
|
|
(0.6
|
)
|
|
(4.3
|
)
|
|
(4.9
|
)
|
||||||
Available-for-sale
|
|
7.8
|
|
|
(4.7
|
)
|
|
3.1
|
|
|
1.5
|
|
|
(23.5
|
)
|
|
(22.0
|
)
|
||||||
Trading account
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||||
Total securities
|
|
1.3
|
|
|
(2.5
|
)
|
|
(1.2
|
)
|
|
1.2
|
|
|
(27.8
|
)
|
|
(26.6
|
)
|
||||||
Loans held for sale
|
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
(1.3
|
)
|
|
0.1
|
|
|
(1.2
|
)
|
||||||
Loans and leases
2
|
|
60.8
|
|
|
(144.6
|
)
|
|
(83.8
|
)
|
|
50.8
|
|
|
(125.3
|
)
|
|
(74.5
|
)
|
||||||
Total interest-earning assets
|
|
59.7
|
|
|
(147.5
|
)
|
|
(87.8
|
)
|
|
53.4
|
|
|
(153.4
|
)
|
|
(100.0
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
INTEREST-BEARING LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Saving and money market
|
|
0.4
|
|
|
(3.1
|
)
|
|
(2.7
|
)
|
|
2.3
|
|
|
(14.9
|
)
|
|
(12.6
|
)
|
||||||
Time
|
|
(1.4
|
)
|
|
(3.0
|
)
|
|
(4.4
|
)
|
|
(2.4
|
)
|
|
(4.8
|
)
|
|
(7.2
|
)
|
||||||
Foreign
|
|
(1.8
|
)
|
|
(0.3
|
)
|
|
(2.1
|
)
|
|
0.3
|
|
|
(1.7
|
)
|
|
(1.4
|
)
|
||||||
Total interest-bearing deposits
|
|
(2.8
|
)
|
|
(6.4
|
)
|
|
(9.2
|
)
|
|
0.2
|
|
|
(21.4
|
)
|
|
(21.2
|
)
|
||||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds purchased and other short-term borrowings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.9
|
)
|
|
(1.1
|
)
|
||||||
Long-term debt
|
|
(31.4
|
)
|
|
(31.5
|
)
|
|
(62.9
|
)
|
|
3.3
|
|
|
(42.6
|
)
|
|
(39.3
|
)
|
||||||
Total borrowed funds
|
|
(31.4
|
)
|
|
(31.5
|
)
|
|
(62.9
|
)
|
|
3.1
|
|
|
(43.5
|
)
|
|
(40.4
|
)
|
||||||
Total interest-bearing liabilities
|
|
(34.2
|
)
|
|
(37.9
|
)
|
|
(72.1
|
)
|
|
3.3
|
|
|
(64.9
|
)
|
|
(61.6
|
)
|
||||||
Change in taxable-equivalent net interest income
|
|
$
|
93.9
|
|
|
$
|
(109.6
|
)
|
|
$
|
(15.7
|
)
|
|
$
|
50.1
|
|
|
$
|
(88.5
|
)
|
|
$
|
(38.4
|
)
|
(Amounts in millions)
|
|
2014
|
|
Percent change
|
|
2013
|
|
Percent change
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposit accounts
|
|
$
|
174.0
|
|
|
(1.3
|
)%
|
|
$
|
176.3
|
|
|
(0.1
|
)%
|
|
$
|
176.4
|
|
Other service charges, commissions and fees
|
|
191.5
|
|
|
5.5
|
|
|
181.5
|
|
|
4.1
|
|
|
174.4
|
|
|||
Trust and wealth management income
|
|
30.6
|
|
|
2.3
|
|
|
29.9
|
|
|
5.3
|
|
|
28.4
|
|
|||
Capital markets and foreign exchange
|
|
22.4
|
|
|
(20.3
|
)
|
|
28.1
|
|
|
4.9
|
|
|
26.8
|
|
|||
Dividends and other investment income
|
|
43.7
|
|
|
(5.2
|
)
|
|
46.1
|
|
|
(17.4
|
)
|
|
55.8
|
|
|||
Loan sales and servicing income
|
|
26.0
|
|
|
(26.3
|
)
|
|
35.3
|
|
|
(11.8
|
)
|
|
40.0
|
|
|||
Fair value and nonhedge derivative loss
|
|
(11.4
|
)
|
|
37.4
|
|
|
(18.2
|
)
|
|
16.5
|
|
|
(21.8
|
)
|
|||
Equity securities gains, net
|
|
13.5
|
|
|
58.8
|
|
|
8.5
|
|
|
(24.8
|
)
|
|
11.3
|
|
|||
Fixed income securities gains (losses), net
|
|
10.4
|
|
|
458.6
|
|
|
(2.9
|
)
|
|
(114.8
|
)
|
|
19.6
|
|
|||
Impairment losses on investment securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Impairment losses on investment securities
|
|
—
|
|
|
100.0
|
|
|
(188.6
|
)
|
|
(13.4
|
)
|
|
(166.3
|
)
|
|||
Noncredit-related losses on securities not expected to
|
|
|
|
|
|
|
|
|
|
|
||||||||
be sold (recognized in other comprehensive income)
|
|
—
|
|
|
(100.0
|
)
|
|
23.5
|
|
|
(62.2
|
)
|
|
62.2
|
|
|||
Net impairment losses on investment securities
|
|
—
|
|
|
100.0
|
|
|
(165.1
|
)
|
|
(58.6
|
)
|
|
(104.1
|
)
|
|||
Other
|
|
7.9
|
|
|
(55.9
|
)
|
|
17.9
|
|
|
36.6
|
|
|
13.1
|
|
|||
Total
|
|
$
|
508.6
|
|
|
50.7
|
|
|
$
|
337.4
|
|
|
(19.6
|
)
|
|
$
|
419.9
|
|
(Amounts in millions)
|
|
2014
|
|
Percent change
|
|
2013
|
|
Percent change
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nonhedge derivative income (loss)
|
|
$
|
(0.4
|
)
|
|
20.0
|
%
|
|
$
|
(0.5
|
)
|
|
66.7
|
%
|
|
$
|
(1.5
|
)
|
Total return swap
|
|
(7.9
|
)
|
|
63.8
|
|
|
(21.8
|
)
|
|
(0.5
|
)
|
|
(21.7
|
)
|
|||
Derivative fair value credit adjustments
|
|
(3.1
|
)
|
|
(175.6
|
)
|
|
4.1
|
|
|
192.9
|
|
|
1.4
|
|
|||
Total
|
|
$
|
(11.4
|
)
|
|
37.4
|
|
|
$
|
(18.2
|
)
|
|
16.5
|
|
|
$
|
(21.8
|
)
|
(Amounts in millions)
|
|
2014
|
|
Percent change
|
|
2013
|
|
Percent change
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
|
$
|
956.4
|
|
|
4.8
|
%
|
|
$
|
912.9
|
|
|
3.1
|
%
|
|
$
|
885.7
|
|
Occupancy, net
|
|
115.7
|
|
|
3.0
|
|
|
112.3
|
|
|
(0.5
|
)
|
|
112.9
|
|
|||
Furniture, equipment and software
|
|
115.3
|
|
|
8.2
|
|
|
106.6
|
|
|
(2.2
|
)
|
|
109.0
|
|
|||
Other real estate expense
|
|
(1.2
|
)
|
|
(170.6
|
)
|
|
1.7
|
|
|
(91.4
|
)
|
|
19.7
|
|
|||
Credit-related expense
|
|
28.0
|
|
|
(16.7
|
)
|
|
33.6
|
|
|
(33.5
|
)
|
|
50.5
|
|
|||
Provision for unfunded lending commitments
|
|
(8.6
|
)
|
|
49.7
|
|
|
(17.1
|
)
|
|
(488.6
|
)
|
|
4.4
|
|
|||
Professional and legal services
|
|
66.0
|
|
|
(2.9
|
)
|
|
68.0
|
|
|
29.5
|
|
|
52.5
|
|
|||
Advertising
|
|
25.1
|
|
|
7.3
|
|
|
23.4
|
|
|
(8.9
|
)
|
|
25.7
|
|
|||
FDIC premiums
|
|
32.2
|
|
|
(15.3
|
)
|
|
38.0
|
|
|
(12.4
|
)
|
|
43.4
|
|
|||
Amortization of core deposit and other intangibles
|
|
10.9
|
|
|
(24.3
|
)
|
|
14.4
|
|
|
(15.3
|
)
|
|
17.0
|
|
|||
Debt extinguishment cost
|
|
44.4
|
|
|
(63.1
|
)
|
|
120.2
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
281.1
|
|
|
(6.4
|
)
|
|
300.4
|
|
|
9.2
|
|
|
275.2
|
|
|||
Total
|
|
$
|
1,665.3
|
|
|
(2.9
|
)
|
|
$
|
1,714.4
|
|
|
7.4
|
|
|
$
|
1,596.0
|
|
(Dollar amounts in millions)
|
|
2014
|
|
Percent change
|
|
|
2013
|
|
Percent change
|
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries and bonuses
|
|
$
|
814.2
|
|
|
5.3
|
%
|
|
|
$
|
773.4
|
|
|
3.7
|
%
|
|
|
$
|
745.7
|
|
Employee benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Employee health and insurance
|
|
53.9
|
|
|
10.2
|
|
|
|
48.9
|
|
|
0.6
|
|
|
|
48.6
|
|
|||
Retirement
|
|
35.0
|
|
|
(10.3
|
)
|
|
|
39.0
|
|
|
(4.4
|
)
|
|
|
40.8
|
|
|||
Payroll taxes and other
|
|
53.3
|
|
|
3.3
|
|
|
|
51.6
|
|
|
2.0
|
|
|
|
50.6
|
|
|||
Total benefits
|
|
142.2
|
|
|
1.9
|
|
|
|
139.5
|
|
|
(0.4
|
)
|
|
|
140.0
|
|
|||
Total salaries and employee benefits
|
|
$
|
956.4
|
|
|
4.8
|
|
|
|
$
|
912.9
|
|
|
3.1
|
|
|
|
$
|
885.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Full-time equivalent (“FTE”) employees at December 31
|
|
10,462
|
|
|
0.1
|
|
|
|
10,452
|
|
|
0.8
|
|
|
|
10,368
|
|
•
|
increased loan balances, primarily at Amegy;
|
•
|
credit quality improvements across all metrics resulted in reductions of the ALLL, with the exception of energy-related exposures; and
|
•
|
increased growth in customer deposit balances.
|
(Amounts in millions)
|
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
||||||||||||||||||||||||
|
2014
|
2013
|
2012
|
|
2014
|
2013
|
2012
|
|
2014
|
2013
|
2012
|
|||||||||||||||||||
KEY FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total assets
|
|
$
|
19,079
|
|
$
|
18,590
|
|
$
|
17,930
|
|
|
$
|
13,929
|
|
$
|
13,705
|
|
$
|
13,119
|
|
|
$
|
11,340
|
|
$
|
10,923
|
|
$
|
11,069
|
|
Total deposits
|
|
16,633
|
|
16,257
|
|
15,575
|
|
|
11,447
|
|
11,198
|
|
10,706
|
|
|
9,707
|
|
9,327
|
|
9,483
|
|
|||||||||
Net income (loss) applicable to controlling interests
|
|
220.4
|
|
224.6
|
|
189.3
|
|
|
93.9
|
|
130.5
|
|
166.7
|
|
|
101.3
|
|
140.1
|
|
127.1
|
|
|||||||||
Net interest margin
|
|
3.40
|
%
|
3.55
|
%
|
4.04
|
%
|
|
3.09
|
%
|
3.23
|
%
|
3.44
|
%
|
|
4.05
|
%
|
4.73
|
%
|
4.71
|
%
|
|||||||||
RISK-BASED CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Tier 1 leverage
|
|
10.52
|
%
|
10.02
|
%
|
10.58
|
%
|
|
11.79
|
%
|
12.09
|
%
|
12.03
|
%
|
|
10.78
|
%
|
10.75
|
%
|
10.37
|
%
|
|||||||||
Tier 1 risk-based capital
|
|
14.07
|
%
|
13.32
|
%
|
12.96
|
%
|
|
12.83
|
%
|
13.61
|
%
|
13.91
|
%
|
|
13.00
|
%
|
12.40
|
%
|
12.92
|
%
|
|||||||||
Total risk-based capital
|
|
15.27
|
%
|
14.52
|
%
|
14.17
|
%
|
|
14.09
|
%
|
14.86
|
%
|
15.17
|
%
|
|
14.18
|
%
|
13.65
|
%
|
14.18
|
%
|
|||||||||
CREDIT QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Provision for loan losses
|
|
$
|
(58.5
|
)
|
$
|
(40.5
|
)
|
$
|
88.3
|
|
|
$
|
32.2
|
|
$
|
4.2
|
|
$
|
(63.9
|
)
|
|
$
|
(20.1
|
)
|
$
|
(16.7
|
)
|
$
|
(7.9
|
)
|
Net loan and lease charge-offs
|
|
13.0
|
|
19.7
|
|
74.4
|
|
|
22.8
|
|
23.8
|
|
4.6
|
|
|
5.5
|
|
(4.1
|
)
|
19.8
|
|
|||||||||
Ratio of net charge-offs to average loans and leases
|
|
0.11
|
%
|
0.16
|
%
|
0.60
|
%
|
|
0.24
|
%
|
0.27
|
%
|
0.06
|
%
|
|
0.06
|
%
|
(0.05
|
)%
|
0.24
|
%
|
|||||||||
Allowance for loan losses
|
|
$
|
219
|
|
$
|
290
|
|
$
|
350
|
|
|
$
|
154
|
|
$
|
144
|
|
$
|
164
|
|
|
$
|
96
|
|
$
|
123
|
|
$
|
146
|
|
Ratio of allowance for loan losses to net loans and leases, at year-end
|
|
1.78
|
%
|
2.37
|
%
|
2.80
|
%
|
|
1.53
|
%
|
1.57
|
%
|
1.94
|
%
|
|
1.13
|
%
|
1.43
|
%
|
1.77
|
%
|
|||||||||
Nonperforming lending-related assets
|
|
$
|
82.6
|
|
$
|
143.7
|
|
$
|
259.0
|
|
|
$
|
78.8
|
|
$
|
79.9
|
|
$
|
138.8
|
|
|
$
|
88.7
|
|
$
|
109.9
|
|
$
|
150.7
|
|
Ratio of nonperforming lending-related assets to net loans and leases and other real estate owned
|
|
0.67
|
%
|
1.16
|
%
|
2.05
|
%
|
|
0.78
|
%
|
0.86
|
%
|
1.63
|
%
|
|
1.04
|
%
|
1.28
|
%
|
1.82
|
%
|
|||||||||
Accruing loans past due 90 days or more
|
|
$
|
2.2
|
|
$
|
2.0
|
|
$
|
2.6
|
|
|
$
|
1.7
|
|
$
|
0.3
|
|
$
|
3.4
|
|
|
$
|
24.7
|
|
$
|
36.9
|
|
$
|
54.2
|
|
Ratio of accruing loan past due 90 days or more to net loans and leases
|
|
0.02
|
%
|
0.02
|
%
|
0.02
|
%
|
|
0.02
|
%
|
—
|
%
|
0.04
|
%
|
|
0.29
|
%
|
0.43
|
%
|
0.66
|
%
|
(Amounts in millions)
|
NBAZ
|
|
NSB
|
|
Vectra
|
|
TCBW
|
||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
|
2014
|
2013
|
2012
|
|
2014
|
2013
|
2012
|
|
2014
|
2013
|
2012
|
|||||||||||||||||||||||||
KEY FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total assets
|
$
|
4,771
|
|
$
|
4,579
|
|
$
|
4,575
|
|
|
$
|
4,096
|
|
$
|
3,980
|
|
$
|
4,061
|
|
|
$
|
2,999
|
|
$
|
2,571
|
|
$
|
2,511
|
|
|
$
|
892
|
|
$
|
943
|
|
$
|
961
|
|
Total deposits
|
4,133
|
|
3,931
|
|
3,874
|
|
|
3,690
|
|
3,590
|
|
3,604
|
|
|
2,591
|
|
2,178
|
|
2,164
|
|
|
752
|
|
793
|
|
791
|
|
||||||||||||
Net income (loss) applicable to controlling interests
|
46.5
|
|
43.9
|
|
30.9
|
|
|
22.3
|
|
18.8
|
|
21.8
|
|
|
21.4
|
|
21.4
|
|
18.9
|
|
|
1.2
|
|
7.7
|
|
7.9
|
|
||||||||||||
Net interest margin
|
3.67
|
%
|
3.76
|
%
|
4.00
|
%
|
|
2.95
|
%
|
2.99
|
%
|
3.19
|
%
|
|
3.99
|
%
|
4.26
|
%
|
4.82
|
%
|
|
3.39
|
%
|
3.24
|
%
|
3.25
|
%
|
||||||||||||
RISK-BASED CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Tier 1 leverage
|
11.84
|
%
|
11.54
|
%
|
12.12
|
%
|
|
9.02
|
%
|
8.86
|
%
|
10.30
|
%
|
|
11.77
|
%
|
12.02
|
%
|
11.52
|
%
|
|
10.31
|
%
|
10.23
|
%
|
9.39
|
%
|
||||||||||||
Tier 1 risk-based capital
|
13.98
|
%
|
13.33
|
%
|
14.53
|
%
|
|
15.51
|
%
|
15.10
|
%
|
18.94
|
%
|
|
13.76
|
%
|
13.02
|
%
|
12.32
|
%
|
|
11.79
|
%
|
12.90
|
%
|
12.30
|
%
|
||||||||||||
Total risk-based capital
|
15.24
|
%
|
14.59
|
%
|
15.79
|
%
|
|
16.78
|
%
|
16.38
|
%
|
20.22
|
%
|
|
15.01
|
%
|
14.28
|
%
|
13.58
|
%
|
|
13.04
|
%
|
14.15
|
%
|
13.56
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
CREDIT QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision for loan losses
|
$
|
(21.5
|
)
|
$
|
(15.0
|
)
|
$
|
(0.6
|
)
|
|
$
|
(20.9
|
)
|
$
|
(12.0
|
)
|
$
|
(9.6
|
)
|
|
$
|
(8.4
|
)
|
$
|
(4.9
|
)
|
$
|
7.0
|
|
|
$
|
(0.6
|
)
|
$
|
(1.8
|
)
|
$
|
0.4
|
|
Net loan and lease charge-offs
|
0.4
|
|
6.2
|
|
14.0
|
|
|
0.2
|
|
3.1
|
|
29.8
|
|
|
0.9
|
|
2.5
|
|
9.1
|
|
|
(0.7
|
)
|
0.7
|
|
2.7
|
|
||||||||||||
Ratio of net charge-offs to average loans and leases
|
0.01
|
%
|
0.17
|
%
|
0.41
|
%
|
|
0.01
|
%
|
0.14
|
%
|
1.38
|
%
|
|
0.04
|
%
|
0.12
|
%
|
0.45
|
%
|
|
(0.11
|
)%
|
0.12
|
%
|
0.48
|
%
|
||||||||||||
Allowance for loan losses
|
$
|
40
|
|
$
|
62
|
|
$
|
83
|
|
|
$
|
54
|
|
$
|
75
|
|
$
|
90
|
|
|
$
|
32
|
|
$
|
42
|
|
$
|
49
|
|
|
$
|
9
|
|
$
|
9
|
|
$
|
12
|
|
Ratio of allowance for loan losses to net loans and leases, at year-end
|
1.07
|
%
|
1.67
|
%
|
2.31
|
%
|
|
2.22
|
%
|
3.25
|
%
|
4.30
|
%
|
|
1.39
|
%
|
1.83
|
%
|
2.30
|
%
|
|
1.40
|
%
|
1.46
|
%
|
2.06
|
%
|
||||||||||||
Nonperforming lending-related assets
|
$
|
28.8
|
|
$
|
49.1
|
|
$
|
70.9
|
|
|
$
|
21.2
|
|
$
|
29.5
|
|
$
|
73.1
|
|
|
$
|
19.1
|
|
$
|
34.4
|
|
$
|
42.3
|
|
|
$
|
6.4
|
|
$
|
5.4
|
|
$
|
10.7
|
|
Ratio of nonperforming lending-related assets to net loans and leases and other real estate owned
|
0.77
|
%
|
1.31
|
%
|
1.94
|
%
|
|
0.88
|
%
|
1.28
|
%
|
3.47
|
%
|
|
0.82
|
%
|
1.50
|
%
|
1.93
|
%
|
|
0.97
|
%
|
0.85
|
%
|
1.88
|
%
|
||||||||||||
Accruing loans past due 90 days or more
|
$
|
0.1
|
|
$
|
0.1
|
|
$
|
0.6
|
|
|
$
|
0.5
|
|
$
|
0.7
|
|
$
|
0.9
|
|
|
$
|
—
|
|
$
|
0.3
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Ratio of accruing loans past due 90 days or more to net loans and leases
|
—
|
%
|
—
|
%
|
0.02
|
%
|
|
0.02
|
%
|
0.03
|
%
|
0.04
|
%
|
|
—
|
%
|
0.01
|
%
|
—
|
%
|
|
—
|
%
|
—
|
%
|
—
|
%
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||||
(In millions)
|
|
Amortized
cost
|
|
Carrying
value
|
|
Estimated
fair
value
|
|
Amortized
cost
|
|
Carrying
value
|
|
Estimated
fair
value
|
|
Amortized
cost
|
|
Carrying
value
|
|
Estimated
fair
value
|
||||||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Municipal securities
|
$
|
608
|
|
|
$
|
608
|
|
|
$
|
620
|
|
|
$
|
551
|
|
|
$
|
551
|
|
|
$
|
558
|
|
|
$
|
525
|
|
|
$
|
525
|
|
|
$
|
537
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Trust preferred securities – banks and insurance
|
79
|
|
|
39
|
|
|
57
|
|
|
80
|
|
|
38
|
|
|
51
|
|
|
255
|
|
|
213
|
|
|
126
|
|
||||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
19
|
|
|
12
|
|
||||||||||
|
|
687
|
|
|
647
|
|
|
677
|
|
|
631
|
|
|
589
|
|
|
609
|
|
|
802
|
|
|
757
|
|
|
675
|
|
|||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury securities
|
|
|
|
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
104
|
|
|
105
|
|
|
105
|
|
|||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Agency securities
|
607
|
|
|
601
|
|
|
601
|
|
|
518
|
|
|
519
|
|
|
519
|
|
|
109
|
|
|
113
|
|
|
113
|
|
||||||||||
Agency guaranteed mortgage-backed securities
|
935
|
|
|
945
|
|
|
945
|
|
|
309
|
|
|
317
|
|
|
317
|
|
|
407
|
|
|
425
|
|
|
425
|
|
||||||||||
Small Business Administration loan-backed securities
|
1,544
|
|
|
1,552
|
|
|
1,552
|
|
|
1,203
|
|
|
1,221
|
|
|
1,221
|
|
|
1,124
|
|
|
1,153
|
|
|
1,153
|
|
||||||||||
Municipal securities
|
189
|
|
|
189
|
|
|
189
|
|
|
65
|
|
|
66
|
|
|
66
|
|
|
75
|
|
|
76
|
|
|
76
|
|
||||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Trust preferred securities – banks and insurance
|
538
|
|
|
415
|
|
|
415
|
|
|
1,508
|
|
|
1,239
|
|
|
1,239
|
|
|
1,596
|
|
|
949
|
|
|
949
|
|
||||||||||
Trust preferred securities – real estate investment trusts
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
23
|
|
|
41
|
|
|
16
|
|
|
16
|
|
||||||||||
Auction rate securities
|
|
5
|
|
|
5
|
|
|
5
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|||||||||
Other
|
1
|
|
|
1
|
|
|
1
|
|
|
28
|
|
|
28
|
|
|
28
|
|
|
26
|
|
|
19
|
|
|
19
|
|
||||||||||
|
|
3,819
|
|
|
3,708
|
|
|
3,708
|
|
|
3,662
|
|
|
3,422
|
|
|
3,422
|
|
|
3,489
|
|
|
2,863
|
|
|
2,863
|
|
|||||||||
Mutual funds and other
|
137
|
|
|
136
|
|
|
136
|
|
|
287
|
|
|
280
|
|
|
280
|
|
|
228
|
|
|
228
|
|
|
228
|
|
||||||||||
|
|
3,956
|
|
|
3,844
|
|
|
3,844
|
|
|
3,949
|
|
|
3,702
|
|
|
3,702
|
|
|
3,717
|
|
|
3,091
|
|
|
3,091
|
|
|||||||||
Total
|
$
|
4,643
|
|
|
$
|
4,491
|
|
|
$
|
4,521
|
|
|
$
|
4,580
|
|
|
$
|
4,291
|
|
|
$
|
4,311
|
|
|
$
|
4,519
|
|
|
$
|
3,848
|
|
|
$
|
3,766
|
|
(Amounts in millions)
|
|
Par value
|
|
Amortized cost
|
|
Carrying value
|
|
|
Sales proceeds
|
|
Gain (loss) realized
|
||||||||||
Performing CDOs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Predominantly bank CDOs
|
|
$
|
160
|
|
|
$
|
128
|
|
|
$
|
119
|
|
|
|
$
|
123
|
|
|
$
|
(5
|
)
|
Insurance CDOs
|
|
398
|
|
|
381
|
|
|
316
|
|
|
|
341
|
|
|
(40
|
)
|
|||||
Other CDOs
|
|
43
|
|
|
26
|
|
|
26
|
|
|
|
28
|
|
|
2
|
|
|||||
Total performing CDOs
|
|
601
|
|
|
535
|
|
|
461
|
|
|
|
492
|
|
|
(43
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming CDOs
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit impairment prior to last 12 months
|
|
507
|
|
|
275
|
|
|
257
|
|
|
|
297
|
|
|
22
|
|
|||||
Credit impairment during last 12 months
|
|
258
|
|
|
103
|
|
|
90
|
|
|
|
119
|
|
|
16
|
|
|||||
Total nonperforming CDOs
|
|
765
|
|
|
378
|
|
|
347
|
|
|
|
416
|
|
|
38
|
|
|||||
Total
|
|
$
|
1,366
|
|
|
$
|
913
|
|
|
$
|
808
|
|
|
|
$
|
908
|
|
|
$
|
(5
|
)
|
|
|
December 31, 2014
|
|
% of carrying value to par
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Net unrealized losses recognized in AOCI
1
|
|
Weighted average discount rate
2
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(Dollar amounts in millions)
|
|
No. of
tranches
|
|
Par
amount
|
|
Amortized
cost
|
|
Carrying
value
|
|
|
December 31,
|
|
|
||||||||||||||||||
|
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|||||||||||||||||||||
Performing CDOs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Predominantly bank CDOs
|
|
17
|
|
|
$
|
443
|
|
|
$
|
420
|
|
|
$
|
325
|
|
|
$
|
(95
|
)
|
|
3.6
|
%
|
|
73
|
%
|
|
73
|
%
|
|
—
|
%
|
Insurance-only CDOs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
(80
|
)
|
||||
Other CDOs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
(60
|
)
|
||||
Total performing CDOs
|
|
17
|
|
|
443
|
|
|
420
|
|
|
325
|
|
|
(95
|
)
|
|
3.6
|
|
|
73
|
|
|
75
|
|
|
(2
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Nonperforming CDOs
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CDOs credit impaired prior to last 12 months
|
|
12
|
|
|
279
|
|
|
172
|
|
|
107
|
|
|
(65
|
)
|
|
4.9
|
|
|
38
|
|
|
46
|
|
|
(8
|
)
|
||||
CDOs credit impaired during last 12 months
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
|
33
|
|
|
(33
|
)
|
||||
Total nonperforming CDOs
|
|
13
|
|
|
280
|
|
|
172
|
|
|
107
|
|
|
(65
|
)
|
|
4.9
|
|
|
38
|
|
|
41
|
|
|
(3
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total CDOs
|
|
30
|
|
|
$
|
723
|
|
|
$
|
592
|
|
|
$
|
432
|
|
|
$
|
(160
|
)
|
|
4.0
|
|
|
60
|
|
|
59
|
|
|
1
|
|
|
|
December 31, 2013
|
|
% of carrying value to par
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Net unrealized losses recognized in AOCI
1
|
|
Weighted average discount rate
2
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(Dollar amounts in millions)
|
|
No. of
tranches
|
|
Par
amount
|
|
Amortized
cost
|
|
Carrying
value
|
|
|
December 31,
|
|
|
||||||||||||||||||
|
|
|
|
|
|
2013
|
|
2012
|
|
Change
|
|||||||||||||||||||||
Performing CDOs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Predominantly bank CDOs
|
|
23
|
|
|
$
|
687
|
|
|
$
|
617
|
|
|
$
|
499
|
|
|
$
|
(118
|
)
|
|
5.6
|
%
|
|
73
|
%
|
|
66
|
%
|
|
7
|
%
|
Insurance-only CDOs
|
|
22
|
|
|
433
|
|
|
413
|
|
|
346
|
|
|
(67
|
)
|
|
4.9
|
|
|
80
|
|
|
72
|
|
|
8
|
|
||||
Other CDOs
|
|
3
|
|
|
43
|
|
|
26
|
|
|
26
|
|
|
—
|
|
|
10.6
|
|
|
60
|
|
|
70
|
|
|
(10
|
)
|
||||
Total performing CDOs
|
|
48
|
|
|
1,163
|
|
|
1,056
|
|
|
871
|
|
|
(185
|
)
|
|
5.5
|
|
|
75
|
|
|
68
|
|
|
7
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Nonperforming CDOs
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CDOs credit impaired prior to last 12 months
|
|
32
|
|
|
614
|
|
|
369
|
|
|
285
|
|
|
(84
|
)
|
|
7.0
|
|
|
46
|
|
|
30
|
|
|
16
|
|
||||
CDOs credit impaired during last 12 months
|
|
23
|
|
|
448
|
|
|
187
|
|
|
147
|
|
|
(40
|
)
|
|
6.5
|
|
|
33
|
|
|
25
|
|
|
8
|
|
||||
Total nonperforming CDOs
|
|
55
|
|
|
1,062
|
|
|
556
|
|
|
432
|
|
|
(124
|
)
|
|
6.8
|
|
|
41
|
|
|
26
|
|
|
15
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total CDOs
|
|
103
|
|
|
$
|
2,225
|
|
|
$
|
1,612
|
|
|
$
|
1,303
|
|
|
$
|
(309
|
)
|
|
6.1
|
|
|
59
|
|
|
49
|
|
|
10
|
|
|
|
|
December 31, 2014
|
||||||||||||||||
(Dollar amounts in millions)
|
|
No. of securities
|
|
Par
amount
|
|
Amortized cost
|
|
Fair
value
|
|||||||||||
Year-to-date rating changes
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Upgrade
|
|
|
24
|
|
|
|
$
|
587
|
|
|
|
$
|
542
|
|
|
|
$
|
416
|
|
No change
|
|
|
6
|
|
|
|
136
|
|
|
|
50
|
|
|
|
35
|
|
|||
Downgrade
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|||
|
|
|
30
|
|
|
|
$
|
723
|
|
|
|
$
|
592
|
|
|
|
$
|
451
|
|
|
|
|
|
|
Total
|
|
Credit OTTI loss
|
|
Valuation losses
1
|
|||||||||||||||||||||||
(Dollar amounts in millions)
|
Number
of securities
|
|
% of
portfolio
|
|
Par
value
|
|
Amortized
cost
|
|
Estimated
fair value
|
|
Unrealized
gain (loss)
|
|
Current
year
|
|
Life-to-
date
|
|
Life-to-
date
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Original ratings of securities, no credit OTTI recognized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Original AAA
|
12
|
|
53.5
|
%
|
|
$
|
328
|
|
|
$
|
309
|
|
|
$
|
239
|
|
|
$
|
(70
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(31
|
)
|
Original A
|
1
|
|
1.1
|
|
|
7
|
|
|
7
|
|
|
6
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Non-OTTI
|
|
|
54.6
|
|
|
335
|
|
|
316
|
|
|
245
|
|
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||||||
Original ratings of securities, credit OTTI recognized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Original AAA
|
1
|
|
8.1
|
|
|
50
|
|
|
43
|
|
|
29
|
|
|
(14
|
)
|
|
—
|
|
|
(5
|
)
|
|
(2
|
)
|
|||||||
Original A
|
11
|
|
33.2
|
|
|
204
|
|
|
128
|
|
|
97
|
|
|
(31
|
)
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|||||||
Original BBB
|
1
|
|
4.1
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|||||||
Total OTTI
|
|
|
45.4
|
|
|
279
|
|
|
171
|
|
|
126
|
|
|
(45
|
)
|
|
—
|
|
|
(105
|
)
|
|
(2
|
)
|
|||||||
Total below-investment-grade bank and insurance CDOs
|
|
100.0
|
%
|
|
$
|
614
|
|
|
$
|
487
|
|
|
$
|
371
|
|
|
$
|
(116
|
)
|
|
$
|
—
|
|
|
$
|
(105
|
)
|
|
$
|
(33
|
)
|
(Amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Held-to-maturity
|
|
Available-for-sale
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value at December 31, 2014
|
|
|
$
|
57
|
|
|
|
|
$
|
393
|
|
|
|
||||||
|
|
|
Incremental
|
|
Cumulative
|
|
Incremental
|
|
Cumulative
|
||||||||||
Currently Modeled Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expected collateral credit losses
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss percentage from currently defaulted or deferring collateral
2
|
|
|
|
|
15.9
|
%
|
|
|
|
|
26.1
|
%
|
|||||||
Projected loss percentage from currently performing collateral
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-year
|
|
|
0.3
|
%
|
|
|
16.2
|
%
|
|
0.2
|
%
|
|
|
26.3
|
%
|
||||
years 2-5
|
|
|
1.9
|
%
|
|
|
18.2
|
%
|
|
1.8
|
%
|
|
|
28.2
|
%
|
||||
years 6-maturity
|
|
|
12.0
|
%
|
|
|
30.1
|
%
|
|
10.4
|
%
|
|
|
38.6
|
%
|
||||
Discount rate
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average spread over LIBOR
|
|
|
497
|
|
bps
|
|
|
|
385
|
|
bps
|
|
|
||||||
Sensitivity of Modeled Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Increase (decrease) in fair value due to increase in projected loss percentage from currently performing collateral
4
|
25%
|
|
$
|
(0.5
|
)
|
|
|
|
|
$
|
(1.2
|
)
|
|
|
|
||||
|
50%
|
|
(1.4
|
)
|
|
|
|
|
(2.2
|
)
|
|
|
|
||||||
|
100%
|
|
(4.0
|
)
|
|
|
|
|
(4.1
|
)
|
|
|
|
||||||
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%
|
|
$
|
(0.9
|
)
|
|
|
|
|
$
|
(3.0
|
)
|
|
|
|
||||
|
50%
|
|
(2.2
|
)
|
|
|
|
|
(4.1
|
)
|
|
|
|
||||||
|
100%
|
|
(4.7
|
)
|
|
|
|
|
(6.1
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to
increase in discount rate
|
+100 bps
|
|
$
|
(6.2
|
)
|
|
|
|
|
$
|
(38.2
|
)
|
|
|
|
||||
|
+200 bps
|
|
(11.6
|
)
|
|
|
|
|
(71.2
|
)
|
|
|
|
||||||
Increase (decrease) in fair value due to increase in forward LIBOR curve
|
+100 bps
|
|
$
|
—
|
|
|
|
|
|
$
|
—
|
|
|
|
|
||||
Increase (decrease) in fair value due to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
increase in prepayment assumption
5
|
+1%
|
|
$
|
(0.1
|
)
|
|
|
|
|
$
|
13.6
|
|
|
|
|
||||
increase in prepayment assumption
6
|
+2%
|
|
0.2
|
|
|
|
|
|
25.7
|
|
|
|
|
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 increased to 4% per year through maturity.
|
|
Total securities
|
|
Within one year
|
|
After one but within five years
|
|
After five but within ten years
|
|
After ten years
|
|||||||||||||||||||||||||
(Amounts in millions)
|
Amount
|
|
Yield*
|
|
Amount
|
|
Yield*
|
|
Amount
|
|
Yield*
|
|
Amount
|
|
Yield*
|
|
Amount
|
|
Yield*
|
|||||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Municipal securities
|
$
|
608
|
|
|
5.1
|
%
|
|
$
|
97
|
|
|
5.1
|
%
|
|
$
|
196
|
|
|
3.8
|
%
|
|
$
|
153
|
|
|
5.6
|
%
|
|
$
|
162
|
|
|
6.2
|
%
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Trust preferred securities – banks and insurance
|
79
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2.6
|
|
|
1
|
|
|
2.6
|
|
|
77
|
|
|
2.4
|
|
|||||
|
687
|
|
|
4.8
|
|
|
97
|
|
|
5.1
|
|
|
197
|
|
|
3.8
|
|
|
154
|
|
|
5.6
|
|
|
239
|
|
|
5.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury securities
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency securities
|
607
|
|
|
1.8
|
|
|
75
|
|
|
1.8
|
|
|
239
|
|
|
1.8
|
|
|
157
|
|
|
1.9
|
|
|
136
|
|
|
1.8
|
|
|||||
Agency guaranteed mortgage-backed securities
|
935
|
|
|
2.5
|
|
|
134
|
|
|
2.5
|
|
|
369
|
|
|
2.5
|
|
|
312
|
|
|
2.3
|
|
|
120
|
|
|
2.8
|
|
|||||
Small Business Administration loan-backed securities
|
1,544
|
|
|
2.0
|
|
|
309
|
|
|
2.0
|
|
|
742
|
|
|
2.0
|
|
|
342
|
|
|
2.0
|
|
|
151
|
|
|
2.0
|
|
|||||
Municipal securities
|
189
|
|
|
2.8
|
|
|
15
|
|
|
0.9
|
|
|
94
|
|
|
2.7
|
|
|
59
|
|
|
3.4
|
|
|
21
|
|
|
3.3
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Trust preferred securities – banks and insurance
|
538
|
|
|
2.1
|
|
|
12
|
|
|
2.0
|
|
|
36
|
|
|
1.8
|
|
|
45
|
|
|
1.8
|
|
|
445
|
|
|
2.1
|
|
|||||
Trust preferred securities – real estate investment trusts
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||
Auction rate securities
|
5
|
|
|
1.0
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
5
|
|
|
1.0
|
|
||||||||
Other
|
1
|
|
|
2.6
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
2.6
|
|
|
—
|
|
|
|
||||||||
|
3,819
|
|
|
2.2
|
|
|
545
|
|
|
2.1
|
|
|
1,480
|
|
|
2.2
|
|
|
916
|
|
|
2.2
|
|
|
878
|
|
|
2.2
|
|
|||||
Mutual funds and other
|
137
|
|
|
1.0
|
|
|
137
|
|
|
1.0
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||
|
3,956
|
|
|
2.1
|
|
|
682
|
|
|
1.9
|
|
|
1,480
|
|
|
2.2
|
|
|
916
|
|
|
2.2
|
|
|
878
|
|
|
2.2
|
|
|||||
Total
|
$
|
4,643
|
|
|
2.5
|
|
|
$
|
779
|
|
|
2.3
|
|
|
$
|
1,677
|
|
|
2.3
|
|
|
$
|
1,070
|
|
|
2.7
|
|
|
$
|
1,117
|
|
|
2.8
|
|
|
December 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Loans and leases
|
$
|
521
|
|
|
$
|
449
|
|
Held-to-maturity – municipal securities
|
608
|
|
|
551
|
|
||
Available-for-sale – municipal securities
|
189
|
|
|
66
|
|
||
Available-for-sale – auction rate securities
|
5
|
|
|
7
|
|
||
Trading account – municipal securities
|
53
|
|
|
27
|
|
||
Unused commitments to extend credit
|
58
|
|
|
17
|
|
||
Total direct exposure to municipalities
|
$
|
1,434
|
|
|
$
|
1,117
|
|
|
December 31, 2014
|
|
December 31,
|
||||||||||||||||||||||||||||
(In millions)
|
One year or less
|
|
One year through five years
|
|
Over five years
|
|
Total
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and industrial
|
$
|
7,355
|
|
|
$
|
4,599
|
|
|
$
|
1,209
|
|
|
$
|
13,163
|
|
|
$
|
12,459
|
|
|
$
|
11,215
|
|
|
$
|
10,422
|
|
|
$
|
9,152
|
|
Leasing
|
35
|
|
|
296
|
|
|
78
|
|
|
409
|
|
|
388
|
|
|
422
|
|
|
380
|
|
|
365
|
|
||||||||
Owner occupied
|
448
|
|
|
1,353
|
|
|
5,550
|
|
|
7,351
|
|
|
7,568
|
|
|
7,781
|
|
|
8,394
|
|
|
8,500
|
|
||||||||
Municipal
|
27
|
|
|
101
|
|
|
393
|
|
|
521
|
|
|
449
|
|
|
494
|
|
|
441
|
|
|
438
|
|
||||||||
Total commercial
|
7,865
|
|
|
6,349
|
|
|
7,230
|
|
|
21,444
|
|
|
20,864
|
|
|
19,912
|
|
|
19,637
|
|
|
18,455
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction and land development
|
806
|
|
|
1,108
|
|
|
72
|
|
|
1,986
|
|
|
2,193
|
|
|
1,969
|
|
|
2,315
|
|
|
3,679
|
|
||||||||
Term
|
1,434
|
|
|
3,115
|
|
|
3,578
|
|
|
8,127
|
|
|
8,203
|
|
|
8,362
|
|
|
8,310
|
|
|
8,084
|
|
||||||||
Total commercial real estate
|
2,240
|
|
|
4,223
|
|
|
3,650
|
|
|
10,113
|
|
|
10,396
|
|
|
10,331
|
|
|
10,625
|
|
|
11,763
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Home equity credit line
|
50
|
|
|
52
|
|
|
2,219
|
|
|
2,321
|
|
|
2,147
|
|
|
2,197
|
|
|
2,210
|
|
|
2,172
|
|
||||||||
1-4 family residential
|
12
|
|
|
151
|
|
|
5,038
|
|
|
5,201
|
|
|
4,742
|
|
|
4,358
|
|
|
3,933
|
|
|
3,518
|
|
||||||||
Construction and other consumer real estate
|
205
|
|
|
10
|
|
|
156
|
|
|
371
|
|
|
325
|
|
|
322
|
|
|
306
|
|
|
346
|
|
||||||||
Bankcard and other revolving plans
|
266
|
|
|
17
|
|
|
118
|
|
|
401
|
|
|
361
|
|
|
312
|
|
|
298
|
|
|
307
|
|
||||||||
Other
|
25
|
|
|
165
|
|
|
23
|
|
|
213
|
|
|
208
|
|
|
233
|
|
|
249
|
|
|
269
|
|
||||||||
Total consumer
|
558
|
|
|
395
|
|
|
7,554
|
|
|
8,507
|
|
|
7,783
|
|
|
7,422
|
|
|
6,996
|
|
|
6,612
|
|
||||||||
Total net loans
|
$
|
10,663
|
|
|
$
|
10,967
|
|
|
$
|
18,434
|
|
|
$
|
40,064
|
|
|
$
|
39,043
|
|
|
$
|
37,665
|
|
|
$
|
37,258
|
|
|
$
|
36,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans maturing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
With fixed interest rates
|
$
|
1,540
|
|
|
$
|
3,851
|
|
|
$
|
3,233
|
|
|
$
|
8,624
|
|
|
|
|
|
|
|
|
|
||||||||
With variable interest rates
|
9,123
|
|
|
7,116
|
|
|
15,201
|
|
|
31,440
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
10,663
|
|
|
$
|
10,967
|
|
|
$
|
18,434
|
|
|
$
|
40,064
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Bank-owned life insurance
|
$
|
476
|
|
|
$
|
466
|
|
Federal Home Loan Bank stock
|
104
|
|
|
105
|
|
||
Federal Reserve stock
|
121
|
|
|
121
|
|
||
SBIC investments
|
86
|
|
|
61
|
|
||
Non-SBIC investment funds and other
|
74
|
|
|
98
|
|
||
Trust preferred securities
|
5
|
|
|
5
|
|
||
|
$
|
866
|
|
|
$
|
856
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||
(Amounts in millions)
|
Amount
|
|
% of
total loans
|
|
Amount
|
|
% of
total loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
13,163
|
|
|
32.9
|
%
|
|
$
|
12,459
|
|
|
31.9
|
%
|
Leasing
|
409
|
|
|
1.0
|
|
|
388
|
|
|
1.0
|
|
||
Owner occupied
|
7,351
|
|
|
18.3
|
|
|
7,568
|
|
|
19.4
|
|
||
Municipal
|
521
|
|
|
1.3
|
|
|
449
|
|
|
1.2
|
|
||
Total commercial
|
21,444
|
|
|
53.5
|
|
|
20,864
|
|
|
53.5
|
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
1,986
|
|
|
5.0
|
|
|
2,193
|
|
|
5.6
|
|
||
Term
|
8,127
|
|
|
20.3
|
|
|
8,203
|
|
|
21.0
|
|
||
Total commercial real estate
|
10,113
|
|
|
25.3
|
|
|
10,396
|
|
|
26.6
|
|
||
Consumer:
|
|
|
|
|
|
|
|
||||||
Home equity credit line
|
2,321
|
|
|
5.8
|
|
|
2,147
|
|
|
5.5
|
|
||
1-4 family residential
|
5,201
|
|
|
13.0
|
|
|
4,742
|
|
|
12.1
|
|
||
Construction and other consumer real estate
|
371
|
|
|
0.9
|
|
|
325
|
|
|
0.8
|
|
||
Bankcard and other revolving plans
|
401
|
|
|
1.0
|
|
|
361
|
|
|
0.9
|
|
||
Other
|
213
|
|
|
0.5
|
|
|
208
|
|
|
0.6
|
|
||
Total consumer
|
8,507
|
|
|
21.2
|
|
|
7,783
|
|
|
19.9
|
|
||
|
|
|
|
|
|
|
|
||||||
Total net loans
|
$
|
40,064
|
|
|
100.0
|
%
|
|
$
|
39,043
|
|
|
100.0
|
%
|
(Amounts in millions)
|
December 31,
2014
|
|
Percent
guaranteed
|
|
December 31,
2013
|
|
Percent
guaranteed
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
539
|
|
|
|
|
76
|
%
|
|
|
|
$
|
563
|
|
|
|
|
76
|
%
|
|
Commercial real estate
|
|
19
|
|
|
|
|
76
|
|
|
|
|
18
|
|
|
|
|
76
|
|
|
||
Consumer
|
|
5
|
|
|
|
|
100
|
|
|
|
|
4
|
|
|
|
|
100
|
|
|
||
Total loans
|
|
$
|
563
|
|
|
|
|
76
|
|
|
|
|
$
|
585
|
|
|
|
|
76
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||
(Amounts in millions)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Real estate, rental and leasing
|
$
|
2,418
|
|
|
11.4
|
%
|
|
$
|
2,937
|
|
|
14.1
|
%
|
Manufacturing
|
2,305
|
|
|
10.7
|
|
|
2,181
|
|
|
10.5
|
|
||
Mining, quarrying and oil and gas extraction
|
2,277
|
|
|
10.6
|
|
|
2,205
|
|
|
10.6
|
|
||
Retail trade
|
1,924
|
|
|
9.0
|
|
|
1,737
|
|
|
8.3
|
|
||
Wholesale trade
|
1,638
|
|
|
7.6
|
|
|
1,464
|
|
|
7.0
|
|
||
Healthcare and social assistance
|
1,347
|
|
|
6.3
|
|
|
1,211
|
|
|
5.8
|
|
||
Transportation and warehousing
|
1,294
|
|
|
6.0
|
|
|
1,074
|
|
|
5.2
|
|
||
Finance and insurance
|
1,168
|
|
|
5.5
|
|
|
1,168
|
|
|
5.6
|
|
||
Construction
|
1,027
|
|
|
4.8
|
|
|
926
|
|
|
4.4
|
|
||
Accommodation and food services
|
911
|
|
|
4.2
|
|
|
799
|
|
|
3.8
|
|
||
Professional, scientific and technical services
|
884
|
|
|
4.1
|
|
|
928
|
|
|
4.4
|
|
||
Other
1
|
4,251
|
|
|
19.8
|
|
|
4,234
|
|
|
20.3
|
|
||
Total
|
$
|
21,444
|
|
|
100.0
|
%
|
|
$
|
20,864
|
|
|
100.0
|
%
|
(Amounts in millions)
|
|
December 31, 2014
|
||
|
|
|
||
Loans and leases
|
|
|
||
Oil and gas-related
|
|
$
|
3,172
|
|
Alternative energy
|
|
225
|
|
|
Total loans and leases
|
|
3,397
|
|
|
Unused commitments to extend credit
|
|
2,858
|
|
|
Total credit exposure
|
|
$
|
6,255
|
|
|
|
|
||
Private equity investments
|
|
$
|
22
|
|
|
|
|
||
Distribution of oil and gas-related balances
|
|
|
||
Upstream – exploration and production
|
|
32
|
%
|
|
Midstream – marketing and transportation
|
|
19
|
|
|
Downstream – refining
|
|
2
|
|
|
Other non-services
|
|
2
|
|
|
Oilfield services
|
|
33
|
|
|
Energy service manufacturing
|
|
12
|
|
|
Total loans and leases
|
|
100
|
%
|
1
|
Many borrowers operate in multiple businesses. Therefore, judgment has been applied in characterizing a borrower as energy-related, and to a particular segment of energy-related activity, e.g., upstream or downstream.
|
(Amounts in millions)
|
|
Collateral Location
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Loan type
|
|
As of
date
|
|
Arizona
|
|
Northern
California
|
|
Southern
California
|
|
Nevada
|
|
Colorado
|
|
Texas
|
|
Utah/
Idaho
|
|
Wash-ington
|
|
Other
1
|
|
Total
|
|
% of
total
CRE
|
|||||||||||||||||||||
Commercial term
|
|||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding
|
|
12/31/2014
|
|
$
|
1,111
|
|
|
$
|
626
|
|
|
$
|
2,172
|
|
|
$
|
557
|
|
|
$
|
400
|
|
|
$
|
1,244
|
|
|
$
|
1,105
|
|
|
$
|
255
|
|
|
$
|
657
|
|
|
$
|
8,127
|
|
|
80.4
|
%
|
% of loan type
|
|
|
|
13.7
|
%
|
|
7.7
|
%
|
|
26.7
|
%
|
|
6.9
|
%
|
|
4.9
|
%
|
|
15.3
|
%
|
|
13.6
|
%
|
|
3.1
|
%
|
|
8.1
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
30-89 days
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
0.1
|
%
|
|
0.4
|
%
|
|
—
|
|
|
—
|
|
|
0.6
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
|
|||||||||||
|
|
12/31/2013
|
|
0.3
|
%
|
|
—
|
|
|
0.2
|
%
|
|
0.7
|
%
|
|
—
|
|
|
0.2
|
%
|
|
0.1
|
%
|
|
—
|
|
|
0.4
|
%
|
|
0.2
|
%
|
|
|
|||||||||||
≥ 90 days
|
|
12/31/2014
|
|
0.1
|
%
|
|
—
|
|
|
0.6
|
%
|
|
0.6
|
%
|
|
—
|
|
|
0.1
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
1.0
|
%
|
|
0.4
|
%
|
|
|
|||||||||||
|
|
12/31/2013
|
|
—
|
|
|
0.5
|
%
|
|
0.4
|
%
|
|
—
|
|
|
—
|
|
|
0.3
|
%
|
|
0.1
|
%
|
|
—
|
|
|
0.5
|
%
|
|
0.2
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
|
12/31/2014
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
|
|
|
|
12/31/2013
|
|
—
|
|
|
1
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
|
|||||||||||
Nonaccrual loans
|
|
12/31/2014
|
|
2
|
|
|
1
|
|
|
7
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
25
|
|
|
|
|||||||||||
|
|
12/31/2013
|
|
7
|
|
|
4
|
|
|
13
|
|
|
8
|
|
|
1
|
|
|
7
|
|
|
6
|
|
|
1
|
|
|
14
|
|
|
61
|
|
|
|
|||||||||||
Residential construction and land development
|
|||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding
|
|
12/31/2014
|
|
$
|
52
|
|
|
$
|
27
|
|
|
$
|
270
|
|
|
$
|
7
|
|
|
$
|
45
|
|
|
$
|
218
|
|
|
$
|
97
|
|
|
$
|
17
|
|
|
$
|
13
|
|
|
$
|
746
|
|
|
7.4
|
%
|
% of loan type
|
|
|
|
7.0
|
%
|
|
3.6
|
%
|
|
36.2
|
%
|
|
0.9
|
%
|
|
6.0
|
%
|
|
29.2
|
%
|
|
13.0
|
%
|
|
2.4
|
%
|
|
1.7
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
30-89 days
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
|
|
12/31/2013
|
|
1.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
%
|
|
|
|||||||||||
≥ 90 days
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.6
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
%
|
|
|
|||||||||||
|
|
12/31/2013
|
|
—
|
|
|
—
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
|
3.0
|
%
|
|
0.2
|
%
|
|
—
|
|
|
—
|
|
|
0.9
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
|
12/31/2014
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Nonaccrual loans
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
|
|||||||||||
|
|
12/31/2013
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
|
|||||||||||
Commercial construction and land development
|
|||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding
|
|
12/31/2014
|
|
$
|
77
|
|
|
$
|
42
|
|
|
$
|
245
|
|
|
$
|
69
|
|
|
$
|
95
|
|
|
$
|
402
|
|
|
$
|
232
|
|
|
$
|
19
|
|
|
$
|
59
|
|
|
$
|
1,240
|
|
|
12.2
|
%
|
% of loan type
|
|
|
|
6.2
|
%
|
|
3.4
|
%
|
|
19.8
|
%
|
|
5.6
|
%
|
|
7.6
|
%
|
|
32.4
|
%
|
|
18.7
|
%
|
|
1.5
|
%
|
|
4.8
|
%
|
|
100.0
|
%
|
|
|
|||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
30-89 days
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
0.5
|
%
|
|
—
|
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|
—
|
|
|
—
|
|
|
0.2
|
%
|
|
|
|||||||||||
|
|
12/31/2013
|
|
0.7
|
%
|
|
0.8
|
%
|
|
0.5
|
%
|
|
4.9
|
%
|
|
—
|
|
|
0.3
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
%
|
|
|
|||||||||||
≥ 90 days
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
0.9
|
%
|
|
—
|
|
|
—
|
|
|
0.9
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
%
|
|
|
|||||||||||
|
|
12/31/2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
%
|
|
|
|||||||||||
Accruing loans past due 90 days or more
|
|
12/31/2014
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Nonaccrual loans
|
|
12/31/2014
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
|
|||||||||||
|
|
12/31/2013
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
|
|||||||||||
Total construction and land development
|
|
12/31/2014
|
|
$
|
129
|
|
|
$
|
69
|
|
|
$
|
515
|
|
|
$
|
76
|
|
|
$
|
140
|
|
|
$
|
620
|
|
|
$
|
329
|
|
|
$
|
36
|
|
|
$
|
72
|
|
|
$
|
1,986
|
|
|
|
|
Total commercial real estate
|
|
12/31/2014
|
|
$
|
1,240
|
|
|
$
|
695
|
|
|
$
|
2,687
|
|
|
$
|
633
|
|
|
$
|
540
|
|
|
$
|
1,864
|
|
|
$
|
1,434
|
|
|
$
|
291
|
|
|
$
|
729
|
|
|
$
|
10,113
|
|
|
100.0
|
%
|
(Amounts in millions)
|
|
December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
106
|
|
|
101
|
|
|
94
|
|
|
130
|
|
|
229
|
|
|||||
Leasing
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|||||
Owner occupied
|
|
87
|
|
|
137
|
|
|
207
|
|
|
242
|
|
|
349
|
|
|||||
Municipal
|
|
1
|
|
|
10
|
|
|
9
|
|
|
—
|
|
|
2
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
|
24
|
|
|
29
|
|
|
108
|
|
|
221
|
|
|
494
|
|
|||||
Term
|
|
25
|
|
|
60
|
|
|
137
|
|
|
173
|
|
|
288
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
64
|
|
|
66
|
|
|
89
|
|
|
122
|
|
|
163
|
|
|||||
Other
|
|
—
|
|
|
2
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|||||
Nonaccrual loans
|
|
307
|
|
|
406
|
|
|
648
|
|
|
911
|
|
|
1,529
|
|
|||||
Other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial properties
|
|
11
|
|
|
16
|
|
|
51
|
|
|
63
|
|
|
121
|
|
|||||
Developed land
|
|
—
|
|
|
6
|
|
|
10
|
|
|
4
|
|
|
7
|
|
|||||
Land
|
|
2
|
|
|
6
|
|
|
8
|
|
|
19
|
|
|
37
|
|
|||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
|
4
|
|
|
8
|
|
|
8
|
|
|
35
|
|
|
64
|
|
|||||
Developed land
|
|
2
|
|
|
9
|
|
|
15
|
|
|
22
|
|
|
52
|
|
|||||
Land
|
|
—
|
|
|
1
|
|
|
6
|
|
|
10
|
|
|
18
|
|
|||||
Other real estate owned
|
|
19
|
|
|
46
|
|
|
98
|
|
|
153
|
|
|
299
|
|
|||||
Total nonperforming lending-related assets
|
|
$
|
326
|
|
|
$
|
452
|
|
|
$
|
746
|
|
|
$
|
1,064
|
|
|
$
|
1,828
|
|
Ratio of nonperforming lending-related assets to net loans and leases
1
and other real estate owned
|
|
0.81
|
%
|
|
1.15
|
%
|
|
1.96
|
%
|
|
2.83
|
%
|
|
4.90
|
%
|
|||||
Accruing loans past due 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
24
|
|
|
$
|
30
|
|
|
$
|
44
|
|
Commercial real estate
|
|
20
|
|
|
29
|
|
|
32
|
|
|
55
|
|
|
89
|
|
|||||
Consumer
|
|
1
|
|
|
3
|
|
|
6
|
|
|
9
|
|
|
9
|
|
|||||
Total
|
|
$
|
29
|
|
|
$
|
40
|
|
|
$
|
62
|
|
|
$
|
94
|
|
|
$
|
142
|
|
Ratio of accruing loans past due 90 days or more to net loans and leases
1
|
|
0.07
|
%
|
|
0.10
|
%
|
|
0.16
|
%
|
|
0.25
|
%
|
|
0.38
|
%
|
|
December 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Restructured loans – accruing
|
$
|
245
|
|
|
$
|
345
|
|
Restructured loans – nonaccruing
|
98
|
|
|
136
|
|
||
Total
|
$
|
343
|
|
|
$
|
481
|
|
(In millions)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Balance at beginning of year
|
$
|
481
|
|
|
$
|
623
|
|
New identified TDRs and principal increases
|
81
|
|
|
213
|
|
||
Payments and payoffs
|
(149
|
)
|
|
(271
|
)
|
||
Charge-offs
|
(16
|
)
|
|
(18
|
)
|
||
No longer reported as TDRs
|
(36
|
)
|
|
(28
|
)
|
||
Sales and other
|
(18
|
)
|
|
(38
|
)
|
||
Balance at end of year
|
$
|
343
|
|
|
$
|
481
|
|
(Amounts in millions)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Loans and leases outstanding on December 31, (net of unearned income)
|
|
$
|
40,064
|
|
|
$
|
39,043
|
|
|
$
|
37,665
|
|
|
$
|
37,258
|
|
|
$
|
36,830
|
|
Average loans and leases outstanding, (net of unearned income)
|
|
$
|
39,523
|
|
|
$
|
38,107
|
|
|
$
|
37,037
|
|
|
$
|
36,897
|
|
|
$
|
38,326
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
|
$
|
746
|
|
|
$
|
896
|
|
|
$
|
1,052
|
|
|
$
|
1,442
|
|
|
$
|
1,532
|
|
Provision charged against earnings
|
|
(98
|
)
|
|
(87
|
)
|
|
14
|
|
|
75
|
|
|
853
|
|
|||||
Adjustment for FDIC-supported/PCI loans
|
|
(1
|
)
|
|
(11
|
)
|
|
(15
|
)
|
|
(9
|
)
|
|
40
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
(77
|
)
|
|
(76
|
)
|
|
(121
|
)
|
|
(241
|
)
|
|
(417
|
)
|
|||||
Commercial real estate
|
|
(15
|
)
|
|
(26
|
)
|
|
(85
|
)
|
|
(229
|
)
|
|
(517
|
)
|
|||||
Consumer
|
|
(14
|
)
|
|
(29
|
)
|
|
(61
|
)
|
|
(90
|
)
|
|
(140
|
)
|
|||||
Total
|
|
(106
|
)
|
|
(131
|
)
|
|
(267
|
)
|
|
(560
|
)
|
|
(1,074
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
41
|
|
|
41
|
|
|
56
|
|
|
55
|
|
|
35
|
|
|||||
Commercial real estate
|
|
12
|
|
|
25
|
|
|
42
|
|
|
35
|
|
|
44
|
|
|||||
Consumer
|
|
11
|
|
|
13
|
|
|
14
|
|
|
14
|
|
|
12
|
|
|||||
Total
|
|
64
|
|
|
79
|
|
|
112
|
|
|
104
|
|
|
91
|
|
|||||
Net loan and lease charge-offs
|
|
(42
|
)
|
|
(52
|
)
|
|
(155
|
)
|
|
(456
|
)
|
|
(983
|
)
|
|||||
Balance at end of year
|
|
$
|
605
|
|
|
$
|
746
|
|
|
$
|
896
|
|
|
$
|
1,052
|
|
|
$
|
1,442
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of net charge-offs to average loans and leases
|
|
0.11
|
%
|
|
0.14
|
%
|
|
0.42
|
%
|
|
1.24
|
%
|
|
2.56
|
%
|
|||||
Ratio of allowance for loan losses to net loans and leases, on December 31,
|
|
1.51
|
%
|
|
1.91
|
%
|
|
2.38
|
%
|
|
2.82
|
%
|
|
3.92
|
%
|
|||||
Ratio of allowance for loan losses to nonperforming loans, on December 31,
|
|
197.18
|
%
|
|
183.54
|
%
|
|
138.25
|
%
|
|
115.43
|
%
|
|
94.32
|
%
|
|||||
Ratio of allowance for loan losses to nonaccrual loans and accruing loans past due 90 days or more, on December 31,
|
|
180.03
|
%
|
|
166.97
|
%
|
|
126.22
|
%
|
|
104.67
|
%
|
|
86.31
|
%
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||||||||||||
|
% of total loans
|
|
Allocation of allowance
|
|
% of total loans
|
|
Allocation of allowance
|
|
% of total loans
|
|
Allocation of allowance
|
|
% of total loans
|
|
Allocation of allowance
|
|
% of total loans
|
|
Allocation of allowance
|
|||||||||||||||||||||||||
(Amounts in millions)
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Loan segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
53.5
|
%
|
|
|
$
|
413
|
|
|
|
53.5
|
%
|
|
|
$
|
469
|
|
|
|
52.9
|
%
|
|
|
$
|
521
|
|
|
|
52.7
|
%
|
|
|
$
|
578
|
|
|
|
50.0
|
%
|
|
|
$
|
786
|
|
|
Commercial real estate
|
25.3
|
|
|
|
145
|
|
|
|
26.6
|
|
|
|
216
|
|
|
|
27.4
|
|
|
|
277
|
|
|
|
28.5
|
|
|
|
347
|
|
|
|
32.0
|
|
|
|
497
|
|
|
|||||
Consumer
|
21.2
|
|
|
|
47
|
|
|
|
19.9
|
|
|
|
61
|
|
|
|
19.7
|
|
|
|
98
|
|
|
|
18.8
|
|
|
|
127
|
|
|
|
18.0
|
|
|
|
159
|
|
|
|||||
Total
|
100.0
|
%
|
|
|
$
|
605
|
|
|
|
100.0
|
%
|
|
|
$
|
746
|
|
|
|
100.0
|
%
|
|
|
$
|
896
|
|
|
|
100.0
|
%
|
|
|
$
|
1,052
|
|
|
|
100.0
|
%
|
|
|
$
|
1,442
|
|
|
•
|
recommending policies to the Enterprise Risk Management Committee (“ERMC”) and administering the Board-approved policies that govern and limit the Company’s exposure to all interest rate and market risks, including policies that are designed to limit the Company’s adverse exposure to changes in interest rates;
|
•
|
approving procedures that support the Board-approved policies;
|
•
|
approving all material interest rate risk management strategies;
|
•
|
approving all financial derivative positions taken at both the Parent and subsidiaries for the purpose of hedging the Company’s interest rate and market risks;
|
•
|
overseeing the management of the balance sheet, net interest income, and liquidity;
|
•
|
calculating the estimated economic value of each class of assets, liabilities, and net equity, given defined interest rate scenarios;
|
•
|
managing the Company’s estimated earnings at risk and estimated economic value of equity (“EVE”) due to interest rate fluctuations; and
|
•
|
reporting timely all policy limit violations to the Chief Risk Officer, who reports them to the Board of Directors.
|
Parallel change in interest rates
|
|
Trigger decline in EVE
|
|
Risk capacity decline in EVE
|
||
|
|
|
|
|
||
+/- 100 bps
|
|
3
|
%
|
|
4
|
%
|
+/- 200 bps
|
|
6
|
%
|
|
8
|
%
|
+/- 300 bps
|
|
9
|
%
|
|
12
|
%
|
|
|
As of December 31, 2014
|
||||||||||
|
|
Fast
|
|
Slow
|
||||||||
Product
|
|
Effective duration (base)
|
|
Effective duration (+200 bps)
|
|
Effective duration (base)
|
|
Effective duration (+200 bps)
|
||||
|
|
|
|
|
|
|
|
|
||||
Demand deposits
|
|
1.7
|
%
|
|
1.7
|
%
|
|
2.8
|
%
|
|
2.9
|
%
|
Money market
|
|
0.8
|
%
|
|
0.7
|
%
|
|
1.2
|
%
|
|
1.1
|
%
|
Savings and interest on checking
|
|
3.0
|
%
|
|
2.8
|
%
|
|
3.8
|
%
|
|
3.6
|
%
|
|
|
As of December 31, 2014
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(3.0
|
)%
|
|
6.8
|
%
|
|
13.9
|
%
|
|
20.6
|
%
|
Slow
|
|
(3.2
|
)%
|
|
8.1
|
%
|
|
16.5
|
%
|
|
24.6
|
%
|
|
|
As of December 31, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
(3.1
|
)%
|
|
6.8
|
%
|
|
14.2
|
%
|
|
21.3
|
%
|
Slow
|
|
(3.2
|
)%
|
|
8.1
|
%
|
|
16.9
|
%
|
|
25.4
|
%
|
|
|
As of December 31, 2014
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
1.4
|
%
|
|
1.2
|
%
|
|
2.4
|
%
|
|
2.6
|
%
|
Slow
|
|
(2.1
|
)%
|
|
6.3
|
%
|
|
12.3
|
%
|
|
16.9
|
%
|
|
|
As of December 31, 2013
|
||||||||||
Repricing scenario
|
|
-100 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
||||
|
|
|
|
|
|
|
|
|
||||
Fast
|
|
0.6
|
%
|
|
1.1
|
%
|
|
2.6
|
%
|
|
3.3
|
%
|
Slow
|
|
(3.5
|
)%
|
|
6.2
|
%
|
|
13.0
|
%
|
|
18.4
|
%
|
•
|
a 9.4% year-over-year increase in noninterest-bearing demand deposits;
|
•
|
the redemption of long-term debt from cash reserves;
|
•
|
issuance of $525 million of new common equity; and
|
•
|
increase of approximately $1.0 billion of primarily short-to-medium duration agency pass-through securities which qualify as HQLA.
|
(In millions)
|
One year or less
|
|
Over one year through three years
|
|
Over three years through five years
|
|
Over five years
|
|
Indeterminable maturity
1
|
|
Total
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
$
|
1,933
|
|
|
$
|
392
|
|
|
$
|
216
|
|
|
$
|
1
|
|
|
|
$
|
45,305
|
|
|
|
$
|
47,847
|
|
Commitments to extend credit
|
4,591
|
|
|
5,695
|
|
|
3,246
|
|
|
3,127
|
|
|
|
|
|
|
16,659
|
|
|||||||
Standby letters of credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial
|
564
|
|
|
95
|
|
|
6
|
|
|
81
|
|
|
|
|
|
|
746
|
|
|||||||
Performance
|
150
|
|
|
31
|
|
|
2
|
|
|
|
|
|
|
|
|
183
|
|
||||||||
Commercial letters of credit
|
30
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
32
|
|
|||||||||
Commitments to make venture and other noninterest-bearing investments
2
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
25
|
|
||||||||||
Federal funds and other short-term borrowings
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
244
|
|
||||||||||
Long-term debt
3
|
217
|
|
|
250
|
|
|
39
|
|
|
585
|
|
|
|
|
|
|
1,091
|
|
|||||||
Operating leases, net of subleases
|
47
|
|
|
88
|
|
|
67
|
|
|
125
|
|
|
|
|
|
|
327
|
|
|||||||
Unrecognized tax benefits
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
3
|
|
||||||||||
|
$
|
7,801
|
|
|
$
|
6,554
|
|
|
$
|
3,578
|
|
|
$
|
3,919
|
|
|
|
$
|
45,305
|
|
|
|
$
|
67,157
|
|
1
|
Indeterminable maturity deposits include noninterest-bearing demand, savings and money market, and non-time foreign.
|
2
|
Commitments to make venture and other noninterest-bearing investments do not have defined maturity dates. They have therefore been considered due on demand, maturing in one year or less.
|
3
|
The maturities on long-term borrowings do not include the associated hedges.
|
(Amounts in millions)
|
|
Coupon
rate
|
|
December 31, 2014
|
|
|
||||||
Description
|
|
|
Carrying balance
|
|
Par amount
|
|
Maturity
|
|||||
|
|
|
|
|
|
|
|
|
||||
Subordinated note
|
|
6.00%
|
|
$
|
32.9
|
|
|
$
|
32.4
|
|
|
September 15, 2015
|
Convertible subordinated note
|
|
6.00%
|
|
70.4
|
|
|
79.3
|
|
|
September 15, 2015
|
||
Subordinated note
|
|
5.50%
|
|
53.0
|
|
|
52.1
|
|
|
November 16, 2015
|
||
Convertible subordinated note
|
|
5.50%
|
|
62.4
|
|
|
71.6
|
|
|
November 16, 2015
|
||
|
|
|
|
$
|
218.7
|
|
|
$
|
235.4
|
|
|
|
Rating agency
|
|
Outlook
|
|
Long-term issuer/senior debt rating
|
|
Subordinated debt rating
|
|
|
|
|
|
|
|
S&P
|
|
Stable
|
|
BBB-
|
|
BB+
|
Moody’s
|
|
Stable
|
|
Ba1
|
|
Ba2
|
Fitch
|
|
Stable
|
|
BBB-
|
|
BB+
|
DBRS
|
|
Stable
|
|
BBB (low)
|
|
BB (high)
|
Kroll
|
|
Stable
|
|
BBB
|
|
BBB-
|
•
|
Setting overall capital targets within the Board-approved capital policy, monitoring performance compared to the Company’s Capital Policy limits, and recommending changes to capital including dividends, common stock repurchases, subordinated debt, and changes in major strategies to maintain the Company and its subsidiary banks at well capitalized levels;
|
•
|
Maintaining an adequate capital cushion to withstand adverse stress events while continuing to meet the lending needs of its customers, and to provide reasonable assurance of continued access to wholesale funding, consistent with fiduciary responsibilities to depositors and bondholders; and
|
•
|
Reviewing agency ratings of the Parent and its subsidiary banks and establishing target ratings.
|
•
|
Maintain sufficient capital to support current needs;
|
•
|
Maintain an adequate capital cushion to withstand future adverse stress events while continuing to meet borrowing needs of its customers; and
|
•
|
Meet fiduciary responsibilities to depositors and bondholders while managing capital distributions to shareholders through dividends and repurchases of common stock so as to be consistent with Federal Reserve guidelines SR 09-04 and 12 U.S.C §§ 56 and 60.
|
|
|
|
Basel III
|
|||||||||||
|
Basel I
|
|
December 31, 2014
pro forma
|
|||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2015 Phase-in
|
|
Fully Phased-in
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Tangible common equity ratio
|
9.48
|
%
|
|
8.02
|
%
|
|
7.09
|
%
|
|
|
|
|
||
Tangible equity ratio
|
11.27
|
%
|
|
9.85
|
%
|
|
9.15
|
%
|
|
|
|
|
||
Average equity to average assets
|
12.57
|
%
|
|
11.81
|
%
|
|
12.22
|
%
|
|
|
|
|
||
Risk-based capital ratios:
|
|
|
|
|
|
|
|
|
|
|||||
Tier 1 common
|
11.92
|
%
|
|
10.18
|
%
|
|
9.80
|
%
|
|
11.82
|
%
|
|
11.80
|
%
|
Tier 1 leverage
|
11.82
|
%
|
|
10.48
|
%
|
|
10.96
|
%
|
|
11.59
|
%
|
|
11.43
|
%
|
Tier 1 risk-based
|
14.47
|
%
|
|
12.77
|
%
|
|
13.38
|
%
|
|
14.03
|
%
|
|
13.84
|
%
|
Total risk-based
|
16.27
|
%
|
|
14.67
|
%
|
|
15.05
|
%
|
|
16.08
|
%
|
|
15.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average common equity
|
5.42
|
%
|
|
5.73
|
%
|
|
3.76
|
%
|
|
|
|
|
||
Tangible return on average tangible common equity
|
6.70
|
%
|
|
7.44
|
%
|
|
5.18
|
%
|
|
|
|
|
|
December 31,
|
||||||||||
(Amounts in millions)
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
||||||
Controlling interest shareholders’ equity (GAAP)
|
$
|
7,370
|
|
|
$
|
6,465
|
|
|
$
|
6,052
|
|
Accumulated other comprehensive loss
|
128
|
|
|
192
|
|
|
446
|
|
|||
Nonqualifying goodwill and intangibles
|
(1,040
|
)
|
|
(1,050
|
)
|
|
(1,065
|
)
|
|||
Disallowed deferred tax assets
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other regulatory adjustments
|
(1
|
)
|
|
(6
|
)
|
|
3
|
|
|||
Qualifying trust preferred securities
|
163
|
|
|
163
|
|
|
448
|
|
|||
Tier 1 capital (regulatory)
|
6,620
|
|
|
5,764
|
|
|
5,884
|
|
|||
Qualifying trust preferred securities
|
(163
|
)
|
|
(163
|
)
|
|
(448
|
)
|
|||
Preferred stock
|
(1,004
|
)
|
|
(1,004
|
)
|
|
(1,128
|
)
|
|||
Tier 1 common capital (non-GAAP)
|
$
|
5,453
|
|
|
$
|
4,597
|
|
|
$
|
4,308
|
|
|
|
|
|
|
|
||||||
Risk-weighted assets (regulatory)
|
$
|
45,738
|
|
|
$
|
45,146
|
|
|
$
|
43,970
|
|
Tier 1 common capital to risk-weighted assets (non-GAAP)
|
11.92
|
%
|
|
10.18
|
%
|
|
9.80
|
%
|
|
Basel III
|
||||||
|
December 31, 2014
pro forma
|
||||||
(Amounts in millions)
|
2015
Phase-in
|
|
Fully Phased-in
|
||||
|
|
|
|
||||
Basel I Tier 1 capital (Regulatory)
|
$
|
6,620
|
|
|
$
|
6,620
|
|
Basel III adjustments
|
(131
|
)
|
|
(226
|
)
|
||
Projected Basel III Tier 1 capital (non-GAAP) (a)
|
6,489
|
|
|
6,394
|
|
||
|
|
|
|
||||
Basel 1 Tier 1 common capital (non-GAAP)
(see Schedule 37)
|
5,453
|
|
|
5,453
|
|
||
Basel III adjustments
|
16
|
|
|
1
|
|
||
Projected Basel III Tier 1 common capital (non-GAAP) (b)
|
5,469
|
|
|
5,454
|
|
||
|
|
|
|
||||
Basel 1 Total risk-based capital (Regulatory)
|
7,443
|
|
|
7,443
|
|
||
Basel III adjustments
|
(4
|
)
|
|
(58
|
)
|
||
Projected Basel III total risk-based capital (non-GAAP) (c)
|
7,439
|
|
|
7,385
|
|
||
|
|
|
|
||||
Basel I risk-weighted assets (Regulatory)
|
45,738
|
|
|
45,738
|
|
||
Basel III adjustments
|
519
|
|
|
475
|
|
||
Projected Basel III risk-weighted assets (non-GAAP) (d)
|
46,257
|
|
|
46,213
|
|
||
|
|
|
|
||||
Basel I tier 1 leverage risk-weighted assets (Regulatory)
|
55,987
|
|
|
55,987
|
|
||
Basel III adjustments
|
(9
|
)
|
|
(63
|
)
|
||
Projected Basel I tier 1 leverage risk-weighted assets (non-GAAP) (e)
|
$
|
55,978
|
|
|
$
|
55,924
|
|
|
|
|
|
||||
Non-GAAP Projected Basel III risk-based capital ratios:
|
|
|
|
||||
Tier 1 common (b/d)
|
11.82
|
%
|
|
11.80
|
%
|
||
Tier 1 leverage (a/e)
|
11.59
|
%
|
|
11.43
|
%
|
||
Tier 1 risk-based (a/d)
|
14.03
|
%
|
|
13.84
|
%
|
||
Total risk-based (c/d)
|
16.08
|
%
|
|
15.98
|
%
|
|
Year Ended December 31,
|
||||||||||
(Amounts in millions)
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
||||||
Net earnings applicable to common shareholders (GAAP)
|
$
|
326.6
|
|
|
$
|
294.0
|
|
|
$
|
178.6
|
|
Adjustments, net of tax:
|
|
|
|
|
|
||||||
Impairment loss on goodwill
|
—
|
|
|
—
|
|
|
0.6
|
|
|||
Amortization of core deposit and other intangibles
|
6.9
|
|
|
9.1
|
|
|
10.8
|
|
|||
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a)
|
$
|
333.5
|
|
|
$
|
303.1
|
|
|
$
|
190.0
|
|
|
|
|
|
|
|
||||||
Average common equity (GAAP)
|
$
|
6,024
|
|
|
$
|
5,130
|
|
|
$
|
4,745
|
|
Average goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,015
|
)
|
|||
Average core deposit and other intangibles
|
(31
|
)
|
|
(44
|
)
|
|
(59
|
)
|
|||
Average tangible common equity (non-GAAP) (b)
|
$
|
4,979
|
|
|
$
|
4,072
|
|
|
$
|
3,671
|
|
|
|
|
|
|
|
||||||
Tangible return on average tangible common equity (non-GAAP) (a/b)
|
6.70
|
%
|
|
7.44
|
%
|
|
5.18
|
%
|
(Amounts in millions)
|
December 31,
|
||||||||||
2014
|
|
2013
|
|
2012
|
|||||||
|
|
|
|
|
|
||||||
Total shareholders’ equity (GAAP)
|
$
|
7,370
|
|
|
$
|
6,465
|
|
|
$
|
6,049
|
|
Goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|||
Core deposit and other intangibles
|
(26
|
)
|
|
(36
|
)
|
|
(51
|
)
|
|||
Tangible equity (non-GAAP) (a)
|
6,330
|
|
|
5,415
|
|
|
4,984
|
|
|||
Preferred stock
|
(1,004
|
)
|
|
(1,004
|
)
|
|
(1,128
|
)
|
|||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3
|
|
|||
Tangible common equity (non-GAAP) (b)
|
$
|
5,326
|
|
|
$
|
4,411
|
|
|
$
|
3,859
|
|
|
|
|
|
|
|
||||||
Total assets (GAAP)
|
$
|
57,209
|
|
|
$
|
56,031
|
|
|
$
|
55,512
|
|
Goodwill
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|||
Core deposit and other intangibles
|
(26
|
)
|
|
(36
|
)
|
|
(51
|
)
|
|||
Tangible assets (non-GAAP) (c)
|
$
|
56,169
|
|
|
$
|
54,981
|
|
|
$
|
54,447
|
|
|
|
|
|
|
|
||||||
Tangible equity ratio (a/c)
|
11.27
|
%
|
|
9.85
|
%
|
|
9.15
|
%
|
|||
Tangible common equity ratio (b/c)
|
9.48
|
%
|
|
8.02
|
%
|
|
7.09
|
%
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|||||||
(In thousands, except shares)
|
December 31,
|
||||||
2014
|
|
2013
|
|||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
845,905
|
|
|
$
|
1,175,083
|
|
Money market investments:
|
|
|
|
||||
Interest-bearing deposits
|
7,174,134
|
|
|
8,175,048
|
|
||
Federal funds sold and security resell agreements
|
1,386,291
|
|
|
282,248
|
|
||
Investment securities:
|
|
|
|
||||
Held-to-maturity, at adjusted cost (approximate fair value $677,196 and $609,547)
|
647,252
|
|
|
588,981
|
|
||
Available-for-sale, at fair value
|
3,844,248
|
|
|
3,701,886
|
|
||
Trading account, at fair value
|
70,601
|
|
|
34,559
|
|
||
|
4,562,101
|
|
|
4,325,426
|
|
||
|
|
|
|
||||
Loans held for sale
|
132,504
|
|
|
171,328
|
|
||
|
|
|
|
||||
Loans and leases, net of unearned income and fees
|
40,064,016
|
|
|
39,043,365
|
|
||
Less allowance for loan losses
|
604,663
|
|
|
746,291
|
|
||
Loans, net of allowance
|
39,459,353
|
|
|
38,297,074
|
|
||
|
|
|
|
||||
Other noninterest-bearing investments
|
865,950
|
|
|
855,642
|
|
||
Premises and equipment, net
|
829,809
|
|
|
726,372
|
|
||
Goodwill
|
1,014,129
|
|
|
1,014,129
|
|
||
Core deposit and other intangibles
|
25,520
|
|
|
36,444
|
|
||
Other real estate owned
|
18,916
|
|
|
46,105
|
|
||
Other assets
|
894,262
|
|
|
926,228
|
|
||
|
$
|
57,208,874
|
|
|
$
|
56,031,127
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
20,528,287
|
|
|
$
|
18,758,753
|
|
Interest-bearing:
|
|
|
|
||||
Savings and money market
|
24,583,636
|
|
|
23,029,928
|
|
||
Time
|
2,406,924
|
|
|
2,593,038
|
|
||
Foreign
|
328,391
|
|
|
1,980,161
|
|
||
|
47,847,238
|
|
|
46,361,880
|
|
||
|
|
|
|
||||
Federal funds and other short-term borrowings
|
244,223
|
|
|
340,348
|
|
||
Long-term debt
|
1,092,282
|
|
|
2,273,575
|
|
||
Reserve for unfunded lending commitments
|
81,076
|
|
|
89,705
|
|
||
Other liabilities
|
574,525
|
|
|
501,056
|
|
||
Total liabilities
|
49,839,344
|
|
|
49,566,564
|
|
||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, without par value, authorized 4,400,000 shares
|
1,004,011
|
|
|
1,003,970
|
|
||
Common stock, without par value; authorized 350,000,000 shares; issued
and outstanding 203,014,903 and 184,677,696 shares
|
4,723,855
|
|
|
4,179,024
|
|
||
Retained earnings
|
1,769,705
|
|
|
1,473,670
|
|
||
Accumulated other comprehensive income (loss)
|
(128,041
|
)
|
|
(192,101
|
)
|
||
Total shareholders’ equity
|
7,369,530
|
|
|
6,464,563
|
|
||
|
$
|
57,208,874
|
|
|
$
|
56,031,127
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||
(In thousands, except per share amounts)
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Interest and fees on loans
|
$
|
1,729,643
|
|
|
$
|
1,814,600
|
|
|
$
|
1,889,884
|
|
Interest on money market investments
|
21,414
|
|
|
23,363
|
|
|
21,080
|
|
|||
Interest on securities
|
101,936
|
|
|
103,442
|
|
|
127,758
|
|
|||
Total interest income
|
1,852,993
|
|
|
1,941,405
|
|
|
2,038,722
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Interest on deposits
|
49,736
|
|
|
58,913
|
|
|
80,146
|
|
|||
Interest on short- and long-term borrowings
|
123,262
|
|
|
186,164
|
|
|
226,636
|
|
|||
Total interest expense
|
172,998
|
|
|
245,077
|
|
|
306,782
|
|
|||
Net interest income
|
1,679,995
|
|
|
1,696,328
|
|
|
1,731,940
|
|
|||
Provision for loan losses
|
(98,082
|
)
|
|
(87,136
|
)
|
|
14,227
|
|
|||
Net interest income after provision for loan losses
|
1,778,077
|
|
|
1,783,464
|
|
|
1,717,713
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Service charges and fees on deposit accounts
|
174,024
|
|
|
176,339
|
|
|
176,401
|
|
|||
Other service charges, commissions and fees
|
191,516
|
|
|
181,473
|
|
|
174,420
|
|
|||
Wealth management income
|
30,573
|
|
|
29,913
|
|
|
28,402
|
|
|||
Loan sales and servicing income
|
26,049
|
|
|
35,293
|
|
|
39,929
|
|
|||
Capital markets and foreign exchange
|
22,416
|
|
|
28,051
|
|
|
26,810
|
|
|||
Dividends and other investment income
|
43,662
|
|
|
46,062
|
|
|
55,825
|
|
|||
Fair value and nonhedge derivative loss
|
(11,390
|
)
|
|
(18,152
|
)
|
|
(21,782
|
)
|
|||
Equity securities gains, net
|
13,471
|
|
|
8,520
|
|
|
11,253
|
|
|||
Fixed income securities gains (losses), net
|
10,419
|
|
|
(2,898
|
)
|
|
19,544
|
|
|||
Impairment losses on investment securities
|
(27
|
)
|
|
(188,606
|
)
|
|
(166,257
|
)
|
|||
Less amounts recognized in other comprehensive income
|
—
|
|
|
23,472
|
|
|
62,196
|
|
|||
Net impairment losses on investment securities
|
(27
|
)
|
|
(165,134
|
)
|
|
(104,061
|
)
|
|||
Other
|
7,925
|
|
|
17,940
|
|
|
13,129
|
|
|||
Total noninterest income
|
508,638
|
|
|
337,407
|
|
|
419,870
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
956,428
|
|
|
912,918
|
|
|
885,661
|
|
|||
Occupancy, net
|
115,701
|
|
|
112,303
|
|
|
112,947
|
|
|||
Furniture, equipment and software
|
115,312
|
|
|
106,629
|
|
|
108,990
|
|
|||
Other real estate expense
|
(1,251
|
)
|
|
1,712
|
|
|
19,723
|
|
|||
Credit-related expense
|
27,985
|
|
|
33,653
|
|
|
50,518
|
|
|||
Provision for unfunded lending commitments
|
(8,629
|
)
|
|
(17,104
|
)
|
|
4,387
|
|
|||
Professional and legal services
|
66,011
|
|
|
67,968
|
|
|
52,509
|
|
|||
Advertising
|
25,100
|
|
|
23,362
|
|
|
25,720
|
|
|||
FDIC premiums
|
32,174
|
|
|
38,019
|
|
|
43,401
|
|
|||
Amortization of core deposit and other intangibles
|
10,923
|
|
|
14,375
|
|
|
17,010
|
|
|||
Debt extinguishment cost
|
44,422
|
|
|
120,192
|
|
|
—
|
|
|||
Other
|
281,116
|
|
|
300,412
|
|
|
275,151
|
|
|||
Total noninterest expense
|
1,665,292
|
|
|
1,714,439
|
|
|
1,596,017
|
|
|||
Income before income taxes
|
621,423
|
|
|
406,432
|
|
|
541,566
|
|
|||
Income taxes
|
222,961
|
|
|
142,977
|
|
|
193,416
|
|
|||
Net income
|
398,462
|
|
|
263,455
|
|
|
348,150
|
|
|||
Net loss applicable to noncontrolling interests
|
—
|
|
|
(336
|
)
|
|
(1,366
|
)
|
|||
Net income applicable to controlling interest
|
398,462
|
|
|
263,791
|
|
|
349,516
|
|
|||
Preferred stock dividends
|
(71,894
|
)
|
|
(95,512
|
)
|
|
(170,885
|
)
|
|||
Preferred stock redemption
|
—
|
|
|
125,700
|
|
|
—
|
|
|||
Net earnings applicable to common shareholders
|
$
|
326,568
|
|
|
$
|
293,979
|
|
|
$
|
178,631
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding during the year:
|
|
|
|
|
|
||||||
Basic shares
|
192,207
|
|
|
183,844
|
|
|
183,081
|
|
|||
Diluted shares
|
192,789
|
|
|
184,297
|
|
|
183,236
|
|
|||
Net earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.68
|
|
|
$
|
1.58
|
|
|
$
|
0.97
|
|
Diluted
|
1.68
|
|
|
1.58
|
|
|
0.97
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||
(In thousands)
|
Year Ended December 31,
|
||||||||||
2014
|
|
2013
|
|
2012
|
|||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
398,462
|
|
|
$
|
263,455
|
|
|
$
|
348,150
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||||||
Net unrealized holding gains on investment securities
|
82,204
|
|
|
145,902
|
|
|
128,992
|
|
|||
Noncredit-related impairment losses on investment securities not expected to be sold
|
—
|
|
|
(13,751
|
)
|
|
(38,406
|
)
|
|||
Reclassification to earnings for realized net fixed income securities losses (gains)
|
(6,447
|
)
|
|
1,775
|
|
|
(12,204
|
)
|
|||
Reclassification to earnings for net credit-related impairment losses on investment securities
|
17
|
|
|
99,903
|
|
|
63,564
|
|
|||
Accretion of securities with noncredit-related impairment losses not expected to be sold
|
1,111
|
|
|
1,258
|
|
|
6,863
|
|
|||
Net unrealized gains (losses) on other noninterest-bearing investments
|
(390
|
)
|
|
(4,503
|
)
|
|
338
|
|
|||
Net unrealized holding gains (losses) on derivative instruments
|
2,664
|
|
|
(431
|
)
|
|
247
|
|
|||
Reclassification adjustment for increase in interest income recognized in earnings on derivative instruments
|
(1,605
|
)
|
|
(1,580
|
)
|
|
(7,857
|
)
|
|||
Pension and postretirement
|
(13,494
|
)
|
|
25,483
|
|
|
4,390
|
|
|||
Other comprehensive income
|
64,060
|
|
|
254,056
|
|
|
145,927
|
|
|||
Comprehensive income
|
462,522
|
|
|
517,511
|
|
|
494,077
|
|
|||
Comprehensive loss applicable to noncontrolling interests
|
—
|
|
|
(336
|
)
|
|
(1,366
|
)
|
|||
Comprehensive income applicable to controlling interest
|
$
|
462,522
|
|
|
$
|
517,847
|
|
|
$
|
495,443
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSO
LIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||
(In thousands, except shares
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, 2011
|
$
|
2,377,560
|
|
|
184,135,388
|
|
|
$
|
4,163,242
|
|
|
$
|
1,036,590
|
|
|
|
$
|
(592,084
|
)
|
|
|
|
$
|
(2,080
|
)
|
|
|
$
|
6,983,228
|
|
Net income (loss) applicable to controlling interest
|
|
|
|
|
|
|
349,516
|
|
|
|
|
|
|
|
(1,366
|
)
|
|
|
348,150
|
|
||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
|
145,927
|
|
|
|
|
|
|
|
145,927
|
|
|||||||||||
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
|
104,796
|
|
|
|
|
(15,232
|
)
|
|
|
|
|
|
|
|
|
|
|
|
89,564
|
|
||||||||||
Net activity under employee plans and related tax benefits
|
|
|
63,810
|
|
|
16,677
|
|
|
|
|
|
|
|
|
|
|
|
|
16,677
|
|
||||||||||
Dividends on preferred stock
|
44,696
|
|
|
|
|
|
|
(170,885
|
)
|
|
|
|
|
|
|
|
|
|
(126,189
|
)
|
||||||||||
Dividends on common stock, $0.04 per share
|
|
|
|
|
|
|
(7,392
|
)
|
|
|
|
|
|
|
|
|
|
(7,392
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
(184
|
)
|
|
|
|
|
|
|
|
|
|
(184
|
)
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
18
|
|
|||||||||||
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) applicable to controlling interest
|
|
|
|
|
|
|
263,791
|
|
|
|
|
|
|
|
(336
|
)
|
|
|
263,455
|
|
||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
254,056
|
|
|
|
|
|
|
|
254,056
|
|
|||||||||||
Issuance of preferred stock
|
800,000
|
|
|
|
|
(15,682
|
)
|
|
|
|
|
|
|
|
|
|
|
|
784,318
|
|
||||||||||
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
|
|
|
478,498
|
|
|
32,389
|
|
|
|
|
|
|
|
|
|
|
|
|
32,389
|
|
||||||||||
Dividends on preferred stock
|
—
|
|
|
|
|
|
|
(95,512
|
)
|
|
|
|
|
|
|
|
|
|
(95,512
|
)
|
||||||||||
Dividends on common stock, $0.13 per share
|
|
|
|
|
|
|
(24,094
|
)
|
|
|
|
|
|
|
|
|
|
(24,094
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
(30
|
)
|
|
|
|
|
|
|
|
|
|
(30
|
)
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
(4,166
|
)
|
|
|
|
|
|
|
|
|
3,764
|
|
|
|
(402
|
)
|
||||||||||
Balance at December 31, 2013
|
1,003,970
|
|
|
184,677,696
|
|
|
4,179,024
|
|
|
1,473,670
|
|
|
|
(192,101
|
)
|
|
|
|
—
|
|
|
|
6,464,563
|
|
||||||
Net income (loss) applicable to controlling interest
|
|
|
|
|
|
|
398,462
|
|
|
|
|
|
|
|
—
|
|
|
|
398,462
|
|
||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
64,060
|
|
|
|
|
|
|
|
64,060
|
|
|||||||||||
Issuance of common stock
|
—
|
|
|
17,617,450
|
|
|
515,856
|
|
|
|
|
|
|
|
|
|
|
|
|
515,856
|
|
|||||||||
Subordinated debt converted to preferred stock
|
41
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
34
|
|
||||||||||
Net activity under employee plans and related tax benefits
|
|
|
719,757
|
|
|
28,982
|
|
|
|
|
|
|
|
|
|
|
|
|
28,982
|
|
||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
(71,894
|
)
|
|
|
|
|
|
|
|
|
|
(71,894
|
)
|
|||||||||||
Dividends on common stock, $0.16 per share
|
|
|
|
|
|
|
(31,216
|
)
|
|
|
|
|
|
|
|
|
|
(31,216
|
)
|
|||||||||||
Change in deferred compensation
|
|
|
|
|
|
|
683
|
|
|
|
|
|
|
|
|
|
|
683
|
|
|||||||||||
Other changes in noncontrolling interests
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
||||||||||
Balance at December 31, 2014
|
$
|
1,004,011
|
|
|
203,014,903
|
|
|
$
|
4,723,855
|
|
|
$
|
1,769,705
|
|
|
|
$
|
(128,041
|
)
|
|
|
|
$
|
—
|
|
|
|
$
|
7,369,530
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
(In thousands)
|
Year Ended December 31,
|
||||||||||
2014
|
|
2013
|
|
2012
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Net income
|
$
|
398,462
|
|
|
$
|
263,455
|
|
|
$
|
348,150
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
||||||
Debt extinguishment cost
|
44,422
|
|
|
120,192
|
|
|
—
|
|
|||
Net impairment losses on investment securities, goodwill, and long-lived assets
|
27
|
|
|
165,134
|
|
|
106,545
|
|
|||
Provision for credit losses
|
(106,711
|
)
|
|
(104,240
|
)
|
|
18,614
|
|
|||
Depreciation and amortization
|
128,648
|
|
|
130,616
|
|
|
185,185
|
|
|||
Deferred income tax expense (benefit)
|
25,938
|
|
|
(60,117
|
)
|
|
9,788
|
|
|||
Net decrease (increase) in trading securities
|
(36,045
|
)
|
|
(6,286
|
)
|
|
11,983
|
|
|||
Net decrease (increase) in loans held for sale
|
38,610
|
|
|
80,323
|
|
|
(31,445
|
)
|
|||
Change in other liabilities
|
42,470
|
|
|
(2,051
|
)
|
|
27,439
|
|
|||
Change in other assets
|
(51,004
|
)
|
|
255,564
|
|
|
71,772
|
|
|||
Other, net
|
(30,710
|
)
|
|
(2,325
|
)
|
|
(11,836
|
)
|
|||
Net cash provided by operating activities
|
454,107
|
|
|
840,265
|
|
|
736,195
|
|
|||
|
|
|
|
|
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Net decrease (increase) in money market investments
|
(103,129
|
)
|
|
297,036
|
|
|
(1,631,278
|
)
|
|||
Proceeds from maturities and paydowns of investment securities
held-to-maturity
|
108,404
|
|
|
130,938
|
|
|
128,278
|
|
|||
Purchases of investment securities held-to-maturity
|
(164,704
|
)
|
|
(155,328
|
)
|
|
(86,790
|
)
|
|||
Proceeds from sales, maturities, and paydowns of investment securities
available-for-sale
|
1,779,327
|
|
|
1,104,010
|
|
|
1,212,047
|
|
|||
Purchases of investment securities available-for-sale
|
(1,794,525
|
)
|
|
(1,325,704
|
)
|
|
(932,034
|
)
|
|||
Net change in loans and leases
|
(1,079,103
|
)
|
|
(1,452,184
|
)
|
|
(725,802
|
)
|
|||
Net purchases of premises and equipment
|
(175,799
|
)
|
|
(88,580
|
)
|
|
(68,894
|
)
|
|||
Proceeds from sales of other real estate owned
|
54,056
|
|
|
110,058
|
|
|
204,818
|
|
|||
Net cash received from (paid for) divestitures
|
—
|
|
|
3,786
|
|
|
(19,901
|
)
|
|||
Other, net
|
34,916
|
|
|
19,109
|
|
|
40,014
|
|
|||
Net cash used in investing activities
|
(1,340,557
|
)
|
|
(1,356,859
|
)
|
|
(1,879,542
|
)
|
|||
|
|
|
|
|
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Net increase in deposits
|
1,485,358
|
|
|
228,807
|
|
|
3,286,823
|
|
|||
Net change in short-term funds borrowed
|
(96,125
|
)
|
|
(12,274
|
)
|
|
(370,264
|
)
|
|||
Proceeds from issuance of long-term debt
|
—
|
|
|
646,408
|
|
|
757,610
|
|
|||
Repayments of long-term debt
|
(1,223,275
|
)
|
|
(832,122
|
)
|
|
(372,891
|
)
|
|||
Debt extinguishment cost paid
|
(35,435
|
)
|
|
(45,812
|
)
|
|
—
|
|
|||
Cash paid for preferred stock redemptions
|
—
|
|
|
(799,468
|
)
|
|
(1,542,500
|
)
|
|||
Proceeds from the issuance of common and preferred stock
|
526,438
|
|
|
794,143
|
|
|
143,240
|
|
|||
Dividends paid on common and preferred stock
|
(96,130
|
)
|
|
(119,660
|
)
|
|
(133,581
|
)
|
|||
Other, net
|
(3,559
|
)
|
|
(10,252
|
)
|
|
(7,533
|
)
|
|||
Net cash provided by (used in) financing activities
|
557,272
|
|
|
(150,230
|
)
|
|
1,760,904
|
|
|||
Net increase (decrease) in cash and due from banks
|
(329,178
|
)
|
|
(666,824
|
)
|
|
617,557
|
|
|||
Cash and due from banks at beginning of year
|
1,175,083
|
|
|
1,841,907
|
|
|
1,224,350
|
|
|||
Cash and due from banks at end of year
|
$
|
845,905
|
|
|
$
|
1,175,083
|
|
|
$
|
1,841,907
|
|
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
152,783
|
|
|
$
|
191,897
|
|
|
$
|
214,673
|
|
Net cash paid for income taxes
|
182,954
|
|
|
181,318
|
|
|
183,348
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
3.
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
Noncash activities are summarized as follows:
|
||||||||||||
(In thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||
|
|
|
|
|
|
|
||||||
Loans transferred to other real estate owned
|
|
$
|
25,189
|
|
|
$
|
60,749
|
|
|
$
|
172,018
|
|
Loans and leases transferred to (from) loans held for sale
|
|
(26,272
|
)
|
|
36,301
|
|
|
—
|
|
|||
Beneficial conversion feature transferred from common stock to preferred stock as a result of subordinated debt conversions
|
|
7
|
|
|
206
|
|
|
15,232
|
|
|||
Subordinated debt converted to preferred stock
|
|
34
|
|
|
1,210
|
|
|
89,564
|
|
|||
Preferred stock transferred to common stock as a result of the Series C preferred stock redemption
|
|
—
|
|
|
580
|
|
|
—
|
|
|||
Preferred stock/beneficial conversion feature transferred to retained earnings as result of the Series C preferred stock redemption
|
|
—
|
|
|
125,700
|
|
|
—
|
|
|||
Adjusted cost of HTM securities transferred to AFS securities
|
|
—
|
|
|
181,915
|
|
|
—
|
|
4.
|
OFFSETTING ASSETS AND LIABILITIES
|
|
|
December 31, 2014
|
||||||||||||||||||||||
(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
|
|
$
|
1,386,291
|
|
|
$
|
—
|
|
|
$
|
1,386,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,386,291
|
|
Derivatives (included in other assets)
|
|
66,420
|
|
|
—
|
|
|
66,420
|
|
|
(3,755
|
)
|
|
—
|
|
|
62,665
|
|
||||||
|
|
$
|
1,452,711
|
|
|
$
|
—
|
|
|
$
|
1,452,711
|
|
|
$
|
(3,755
|
)
|
|
$
|
—
|
|
|
$
|
1,448,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds and other short-term borrowings
|
|
$
|
244,223
|
|
|
$
|
—
|
|
|
$
|
244,223
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
244,223
|
|
Derivatives (included in other liabilities)
|
|
66,064
|
|
|
—
|
|
|
66,064
|
|
|
(3,755
|
)
|
|
(31,968
|
)
|
|
30,341
|
|
||||||
|
|
$
|
310,287
|
|
|
$
|
—
|
|
|
$
|
310,287
|
|
|
$
|
(3,755
|
)
|
|
$
|
(31,968
|
)
|
|
$
|
274,564
|
|
|
|
December 31, 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 other short-term borrowings
|
|
$
|
282,248
|
|
|
$
|
—
|
|
|
$
|
282,248
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
282,248
|
|
Derivatives (included in other assets)
|
|
65,683
|
|
|
—
|
|
|
65,683
|
|
|
(11,650
|
)
|
|
2,210
|
|
|
56,243
|
|
||||||
|
|
$
|
347,931
|
|
|
$
|
—
|
|
|
$
|
347,931
|
|
|
$
|
(11,650
|
)
|
|
$
|
2,210
|
|
|
$
|
338,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds and other short-term borrowings
|
|
$
|
340,348
|
|
|
$
|
—
|
|
|
$
|
340,348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
340,348
|
|
Derivatives (included in other liabilities)
|
|
68,397
|
|
|
—
|
|
|
68,397
|
|
|
(11,650
|
)
|
|
(26,997
|
)
|
|
29,750
|
|
||||||
|
|
$
|
408,745
|
|
|
$
|
—
|
|
|
$
|
408,745
|
|
|
$
|
(11,650
|
)
|
|
$
|
(26,997
|
)
|
|
$
|
370,098
|
|
5.
|
INVESTMENTS
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
|
|
Recognized in OCI
1
|
|
|
|
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
|
$
|
607,575
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
607,575
|
|
|
$
|
13,018
|
|
|
$
|
804
|
|
|
$
|
619,789
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
79,276
|
|
|
—
|
|
|
39,699
|
|
|
39,577
|
|
|
18,393
|
|
|
663
|
|
|
57,307
|
|
|||||||
Other debt securities
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
|
686,951
|
|
|
—
|
|
|
39,699
|
|
|
647,252
|
|
|
31,411
|
|
|
1,467
|
|
|
677,196
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agency securities
|
607,523
|
|
|
1,572
|
|
|
8,343
|
|
|
600,752
|
|
|
|
|
|
|
600,752
|
|
|||||||||
Agency guaranteed mortgage-backed securities
|
935,164
|
|
|
12,132
|
|
|
2,105
|
|
|
945,191
|
|
|
|
|
|
|
945,191
|
|
|||||||||
Small Business Administration loan-backed securities
|
1,544,710
|
|
|
16,446
|
|
|
8,891
|
|
|
1,552,265
|
|
|
|
|
|
|
1,552,265
|
|
|||||||||
Municipal securities
|
189,059
|
|
|
1,143
|
|
|
945
|
|
|
189,257
|
|
|
|
|
|
|
189,257
|
|
|||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
537,589
|
|
|
103
|
|
|
121,984
|
|
|
415,708
|
|
|
|
|
|
|
415,708
|
|
|||||||||
Auction rate securities
|
4,688
|
|
|
80
|
|
|
7
|
|
|
4,761
|
|
|
|
|
|
|
4,761
|
|
|||||||||
Other
|
564
|
|
|
127
|
|
|
—
|
|
|
691
|
|
|
|
|
|
|
691
|
|
|||||||||
|
3,819,297
|
|
|
31,603
|
|
|
142,275
|
|
|
3,708,625
|
|
|
|
|
|
|
3,708,625
|
|
|||||||||
Mutual funds and other
|
136,591
|
|
|
76
|
|
|
1,044
|
|
|
135,623
|
|
|
|
|
|
|
135,623
|
|
|||||||||
|
3,955,888
|
|
|
31,679
|
|
|
143,319
|
|
|
3,844,248
|
|
|
|
|
|
|
3,844,248
|
|
|||||||||
Total
|
$
|
4,642,839
|
|
|
$
|
31,679
|
|
|
$
|
183,018
|
|
|
$
|
4,491,500
|
|
|
|
|
|
|
$
|
4,521,444
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||
|
|
|
Recognized in OCI
1
|
|
|
|
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
|
$
|
551,055
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
551,055
|
|
|
$
|
11,295
|
|
|
$
|
4,616
|
|
|
$
|
557,734
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
79,419
|
|
|
—
|
|
|
41,593
|
|
|
37,826
|
|
|
15,195
|
|
|
1,308
|
|
|
51,713
|
|
|||||||
Other debt securities
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
|
630,574
|
|
|
—
|
|
|
41,593
|
|
|
588,981
|
|
|
26,490
|
|
|
5,924
|
|
|
609,547
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
1,442
|
|
|
104
|
|
|
—
|
|
|
1,546
|
|
|
|
|
|
|
1,546
|
|
|||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agency securities
|
517,905
|
|
|
1,920
|
|
|
901
|
|
|
518,924
|
|
|
|
|
|
|
518,924
|
|
|||||||||
Agency guaranteed mortgage-backed securities
|
308,687
|
|
|
9,926
|
|
|
1,237
|
|
|
317,376
|
|
|
|
|
|
|
317,376
|
|
|||||||||
Small Business Administration loan-backed securities
|
1,202,901
|
|
|
21,129
|
|
|
2,771
|
|
|
1,221,259
|
|
|
|
|
|
|
1,221,259
|
|
|||||||||
Municipal securities
|
65,425
|
|
|
1,329
|
|
|
490
|
|
|
66,264
|
|
|
|
|
|
|
66,264
|
|
|||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust preferred securities – banks and insurance
|
1,508,224
|
|
|
13,439
|
|
|
282,843
|
|
|
1,238,820
|
|
|
|
|
|
|
1,238,820
|
|
|||||||||
Trust preferred securities – real estate investment trusts
|
22,996
|
|
|
—
|
|
|
—
|
|
|
22,996
|
|
|
|
|
|
|
22,996
|
|
|||||||||
Auction rate securities
|
6,507
|
|
|
118
|
|
|
26
|
|
|
6,599
|
|
|
|
|
|
|
6,599
|
|
|||||||||
Other
|
27,540
|
|
|
359
|
|
|
—
|
|
|
27,899
|
|
|
|
|
|
|
27,899
|
|
|||||||||
|
3,661,627
|
|
|
48,324
|
|
|
288,268
|
|
|
3,421,683
|
|
|
|
|
|
|
3,421,683
|
|
|||||||||
Mutual funds and other
|
287,603
|
|
|
21
|
|
|
7,421
|
|
|
280,203
|
|
|
|
|
|
|
280,203
|
|
|||||||||
|
3,949,230
|
|
|
48,345
|
|
|
295,689
|
|
|
3,701,886
|
|
|
|
|
|
|
3,701,886
|
|
|||||||||
Total
|
$
|
4,579,804
|
|
|
$
|
48,345
|
|
|
$
|
337,282
|
|
|
$
|
4,290,867
|
|
|
|
|
|
|
$
|
4,311,433
|
|
1
|
The gross unrealized losses recognized in OCI on HTM securities resulted from a previous transfer of AFS securities to HTM and from OTTI.
|
|
Held-to-maturity
|
|
Available-for-sale
|
||||||||||||
(In thousands)
|
Amortized
cost
|
|
Estimated
fair
value
|
|
Amortized
cost
|
|
Estimated
fair
value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
96,703
|
|
|
$
|
98,481
|
|
|
$
|
544,585
|
|
|
$
|
544,098
|
|
Due after one year through five years
|
197,297
|
|
|
200,611
|
|
|
1,480,429
|
|
|
1,478,463
|
|
||||
Due after five years through ten years
|
154,178
|
|
|
157,735
|
|
|
915,594
|
|
|
908,323
|
|
||||
Due after ten years
|
238,773
|
|
|
220,369
|
|
|
878,689
|
|
|
777,741
|
|
||||
|
$
|
686,951
|
|
|
$
|
677,196
|
|
|
$
|
3,819,297
|
|
|
$
|
3,708,625
|
|
|
December 31, 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
|
$
|
4,025
|
|
|
$
|
70,400
|
|
|
$
|
591
|
|
|
$
|
9,103
|
|
|
$
|
4,616
|
|
|
$
|
79,503
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
—
|
|
|
—
|
|
|
42,901
|
|
|
51,319
|
|
|
42,901
|
|
|
51,319
|
|
|||||||
|
4,025
|
|
|
70,400
|
|
|
43,492
|
|
|
60,422
|
|
|
47,517
|
|
|
130,822
|
|
|||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Agency securities
|
828
|
|
|
47,862
|
|
|
73
|
|
|
5,874
|
|
|
901
|
|
|
53,736
|
|
|||||||
Agency guaranteed mortgage-backed securities
|
1,231
|
|
|
64,533
|
|
|
6
|
|
|
935
|
|
|
1,237
|
|
|
65,468
|
|
|||||||
Small Business Administration loan-backed securities
|
1,709
|
|
|
187,680
|
|
|
1,062
|
|
|
39,256
|
|
|
2,771
|
|
|
226,936
|
|
|||||||
Municipal securities
|
73
|
|
|
8,834
|
|
|
417
|
|
|
3,179
|
|
|
490
|
|
|
12,013
|
|
|||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trust preferred securities – banks and insurance
|
2,539
|
|
|
51,911
|
|
|
280,304
|
|
|
847,990
|
|
|
282,843
|
|
|
899,901
|
|
|||||||
Auction rate securities
|
5
|
|
|
1,609
|
|
|
21
|
|
|
892
|
|
|
26
|
|
|
2,501
|
|
|||||||
|
6,385
|
|
|
362,429
|
|
|
281,883
|
|
|
898,126
|
|
|
288,268
|
|
|
1,260,555
|
|
|||||||
Mutual funds and other
|
943
|
|
|
24,057
|
|
|
6,478
|
|
|
103,614
|
|
|
7,421
|
|
|
127,671
|
|
|||||||
|
7,328
|
|
|
386,486
|
|
|
288,361
|
|
|
1,001,740
|
|
|
295,689
|
|
|
1,388,226
|
|
|||||||
Total
|
$
|
11,353
|
|
|
$
|
456,886
|
|
|
$
|
331,853
|
|
|
$
|
1,062,162
|
|
|
$
|
343,206
|
|
|
$
|
1,519,048
|
|
1)
|
Market yield requirements for bank CDO securities remain elevated. 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 (“PIK”) feature described subsequently. The resulting increase in the rate of return demanded by investors for trust preferred CDOs remains substantially higher than the contractual interest rates. CDO tranches backed by bank trust preferred securities continue to be characterized by 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 for market participants to model. The first feature unique to bank CDOs is the interest deferral feature previously noted. Throughout the 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.
|
3)
|
Although we continue to see ratings upgrades of securities held in our CDO portfolio every quarter, the ratings from one NRSRO remain below-investment-grade for even some of the most senior tranches that originally were rated AAA. 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 generally reduces the pool of buyers, which causes greater illiquidity and therefore most likely a higher implicit discount rate/lower price with regard to that CDO tranche.
|
(In thousands)
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
||||||
HTM
|
$
|
—
|
|
|
$
|
16,114
|
|
|
$
|
16,718
|
|
AFS
|
—
|
|
|
7,358
|
|
|
45,478
|
|
|||
|
$
|
—
|
|
|
$
|
23,472
|
|
|
$
|
62,196
|
|
(In thousands)
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||||||||
|
Taxable
|
|
Nontaxable
|
|
Total
|
|
Taxable
|
|
Nontaxable
|
|
Total
|
|
Taxable
|
|
Nontaxable
|
|
Total
|
||||||||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Held-to-maturity
|
$
|
14,770
|
|
|
$
|
11,264
|
|
|
$
|
26,034
|
|
|
$
|
19,905
|
|
|
$
|
11,375
|
|
|
$
|
31,280
|
|
|
$
|
20,699
|
|
|
$
|
14,052
|
|
|
$
|
34,751
|
|
Available-for-sale
|
71,409
|
|
|
2,514
|
|
|
73,923
|
|
|
69,106
|
|
|
2,001
|
|
|
71,107
|
|
|
88,698
|
|
|
3,563
|
|
|
92,261
|
|
|||||||||
Trading
|
1,979
|
|
|
—
|
|
|
1,979
|
|
|
1,055
|
|
|
—
|
|
|
1,055
|
|
|
746
|
|
|
—
|
|
|
746
|
|
|||||||||
|
$
|
88,158
|
|
|
$
|
13,778
|
|
|
$
|
101,936
|
|
|
$
|
90,066
|
|
|
$
|
13,376
|
|
|
$
|
103,442
|
|
|
$
|
110,143
|
|
|
$
|
17,615
|
|
|
$
|
127,758
|
|
6.
|
LOANS AND ALLOWANCE FOR CREDIT LOSSES
|
|
December 31,
|
||||||
(In thousands)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Loans held for sale
|
$
|
132,504
|
|
|
$
|
171,328
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
13,162,955
|
|
|
$
|
12,458,502
|
|
Leasing
|
408,974
|
|
|
387,929
|
|
||
Owner occupied
|
7,351,548
|
|
|
7,567,812
|
|
||
Municipal
|
520,887
|
|
|
449,418
|
|
||
Total commercial
|
21,444,364
|
|
|
20,863,661
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
1,986,408
|
|
|
2,193,283
|
|
||
Term
|
8,126,600
|
|
|
8,202,868
|
|
||
Total commercial real estate
|
10,113,008
|
|
|
10,396,151
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
2,321,150
|
|
|
2,146,707
|
|
||
1-4 family residential
|
5,201,240
|
|
|
4,741,965
|
|
||
Construction and other consumer real estate
|
370,542
|
|
|
325,097
|
|
||
Bankcard and other revolving plans
|
401,352
|
|
|
361,401
|
|
||
Other
|
212,360
|
|
|
208,383
|
|
||
Total consumer
|
8,506,644
|
|
|
7,783,553
|
|
||
Total loans
|
$
|
40,064,016
|
|
|
$
|
39,043,365
|
|
•
|
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
|
•
|
Effects of other external factors
|
|
December 31, 2014
|
||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
$
|
469,213
|
|
|
$
|
216,012
|
|
|
$
|
61,066
|
|
|
$
|
746,291
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
(19,691
|
)
|
|
(67,825
|
)
|
|
(10,566
|
)
|
|
(98,082
|
)
|
||||
Adjustment for FDIC-supported loans
|
(1,209
|
)
|
|
—
|
|
|
(96
|
)
|
|
(1,305
|
)
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Gross loan and lease charge-offs
|
(76,345
|
)
|
|
(15,322
|
)
|
|
(14,543
|
)
|
|
(106,210
|
)
|
||||
Recoveries
|
40,546
|
|
|
12,144
|
|
|
11,279
|
|
|
63,969
|
|
||||
Net loan and lease charge-offs
|
(35,799
|
)
|
|
(3,178
|
)
|
|
(3,264
|
)
|
|
(42,241
|
)
|
||||
Balance at end of year
|
$
|
412,514
|
|
|
$
|
145,009
|
|
|
$
|
47,140
|
|
|
$
|
604,663
|
|
|
|
|
|
|
|
|
|
||||||||
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
$
|
48,345
|
|
|
$
|
37,485
|
|
|
$
|
3,875
|
|
|
$
|
89,705
|
|
Provision charged (credited) to earnings
|
10,586
|
|
|
(15,968
|
)
|
|
(3,247
|
)
|
|
(8,629
|
)
|
||||
Balance at end of year
|
$
|
58,931
|
|
|
$
|
21,517
|
|
|
$
|
628
|
|
|
$
|
81,076
|
|
|
|
|
|
|
|
|
|
||||||||
Total allowance for credit losses
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
412,514
|
|
|
$
|
145,009
|
|
|
$
|
47,140
|
|
|
$
|
604,663
|
|
Reserve for unfunded lending commitments
|
58,931
|
|
|
21,517
|
|
|
628
|
|
|
81,076
|
|
||||
Total allowance for credit losses
|
$
|
471,445
|
|
|
$
|
166,526
|
|
|
$
|
47,768
|
|
|
$
|
685,739
|
|
|
December 31, 2013
|
||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
$
|
520,914
|
|
|
$
|
277,562
|
|
|
$
|
97,611
|
|
|
$
|
896,087
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
(14,109
|
)
|
|
(55,125
|
)
|
|
(17,902
|
)
|
|
(87,136
|
)
|
||||
Adjustment for FDIC-supported loans
|
(2,574
|
)
|
|
(6,070
|
)
|
|
(2,593
|
)
|
|
(11,237
|
)
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Gross loan and lease charge-offs
|
(75,845
|
)
|
|
(25,578
|
)
|
|
(29,374
|
)
|
|
(130,797
|
)
|
||||
Recoveries
|
40,827
|
|
|
25,223
|
|
|
13,324
|
|
|
79,374
|
|
||||
Net loan and lease charge-offs
|
(35,018
|
)
|
|
(355
|
)
|
|
(16,050
|
)
|
|
(51,423
|
)
|
||||
Balance at end of year
|
$
|
469,213
|
|
|
$
|
216,012
|
|
|
$
|
61,066
|
|
|
$
|
746,291
|
|
|
|
|
|
|
|
|
|
||||||||
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
$
|
67,374
|
|
|
$
|
37,852
|
|
|
$
|
1,583
|
|
|
$
|
106,809
|
|
Provision charged (credited) to earnings
|
(19,029
|
)
|
|
(367
|
)
|
|
2,292
|
|
|
(17,104
|
)
|
||||
Balance at end of year
|
$
|
48,345
|
|
|
$
|
37,485
|
|
|
$
|
3,875
|
|
|
$
|
89,705
|
|
|
|
|
|
|
|
|
|
||||||||
Total allowance for credit losses
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
469,213
|
|
|
$
|
216,012
|
|
|
$
|
61,066
|
|
|
$
|
746,291
|
|
Reserve for unfunded lending commitments
|
48,345
|
|
|
37,485
|
|
|
3,875
|
|
|
89,705
|
|
||||
Total allowance for credit losses
|
$
|
517,558
|
|
|
$
|
253,497
|
|
|
$
|
64,941
|
|
|
$
|
835,996
|
|
|
December 31, 2013
|
||||||||||||||
(In thousands)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
39,288
|
|
|
$
|
12,510
|
|
|
$
|
10,701
|
|
|
$
|
62,499
|
|
Collectively evaluated for impairment
|
426,240
|
|
|
200,853
|
|
|
50,173
|
|
|
677,266
|
|
||||
Purchased loans with evidence of credit deterioration
|
3,685
|
|
|
2,649
|
|
|
192
|
|
|
6,526
|
|
||||
Total
|
$
|
469,213
|
|
|
$
|
216,012
|
|
|
$
|
61,066
|
|
|
$
|
746,291
|
|
|
|
|
|
|
|
|
|
||||||||
Outstanding loan balances
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
316,415
|
|
|
$
|
263,313
|
|
|
$
|
101,552
|
|
|
$
|
681,280
|
|
Collectively evaluated for impairment
|
20,428,295
|
|
|
9,963,912
|
|
|
7,658,794
|
|
|
38,051,001
|
|
||||
Purchased loans with evidence of credit deterioration
|
118,951
|
|
|
168,926
|
|
|
23,207
|
|
|
311,084
|
|
||||
Total
|
$
|
20,863,661
|
|
|
$
|
10,396,151
|
|
|
$
|
7,783,553
|
|
|
$
|
39,043,365
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||
(In thousands)
|
Current
|
|
30-89 days
past due
|
|
90+ days
past due
|
|
Total
past due
|
|
Total
loans
|
|
Accruing
loans
90+ days
past due
|
|
Nonaccrual
loans
that are
current
1
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
12,360,946
|
|
|
$
|
49,462
|
|
|
$
|
48,094
|
|
|
$
|
97,556
|
|
|
$
|
12,458,502
|
|
|
$
|
3,411
|
|
|
$
|
53,279
|
|
Leasing
|
387,526
|
|
|
173
|
|
|
230
|
|
|
403
|
|
|
387,929
|
|
|
36
|
|
|
563
|
|
|||||||
Owner occupied
|
7,480,166
|
|
|
40,806
|
|
|
46,840
|
|
|
87,646
|
|
|
7,567,812
|
|
|
4,555
|
|
|
82,770
|
|
|||||||
Municipal
|
440,607
|
|
|
3,308
|
|
|
5,503
|
|
|
8,811
|
|
|
449,418
|
|
|
—
|
|
|
1,175
|
|
|||||||
Total commercial
|
20,669,245
|
|
|
93,749
|
|
|
100,667
|
|
|
194,416
|
|
|
20,863,661
|
|
|
8,002
|
|
|
137,787
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,163,032
|
|
|
8,968
|
|
|
21,283
|
|
|
30,251
|
|
|
2,193,283
|
|
|
9,469
|
|
|
17,310
|
|
|||||||
Term
|
8,147,699
|
|
|
21,623
|
|
|
33,546
|
|
|
55,169
|
|
|
8,202,868
|
|
|
19,978
|
|
|
43,030
|
|
|||||||
Total commercial real estate
|
10,310,731
|
|
|
30,591
|
|
|
54,829
|
|
|
85,420
|
|
|
10,396,151
|
|
|
29,447
|
|
|
60,340
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
2,134,908
|
|
|
8,248
|
|
|
3,551
|
|
|
11,799
|
|
|
2,146,707
|
|
|
1,079
|
|
|
2,868
|
|
|||||||
1-4 family residential
|
4,709,682
|
|
|
8,837
|
|
|
23,446
|
|
|
32,283
|
|
|
4,741,965
|
|
|
667
|
|
|
27,593
|
|
|||||||
Construction and other consumer real estate
|
322,825
|
|
|
1,038
|
|
|
1,234
|
|
|
2,272
|
|
|
325,097
|
|
|
157
|
|
|
2,232
|
|
|||||||
Bankcard and other revolving plans
|
358,170
|
|
|
2,117
|
|
|
1,114
|
|
|
3,231
|
|
|
361,401
|
|
|
924
|
|
|
1,109
|
|
|||||||
Other
|
206,386
|
|
|
1,269
|
|
|
728
|
|
|
1,997
|
|
|
208,383
|
|
|
72
|
|
|
126
|
|
|||||||
Total consumer loans
|
7,731,971
|
|
|
21,509
|
|
|
30,073
|
|
|
51,582
|
|
|
7,783,553
|
|
|
2,899
|
|
|
33,928
|
|
|||||||
Total
|
$
|
38,711,947
|
|
|
$
|
145,849
|
|
|
$
|
185,569
|
|
|
$
|
331,418
|
|
|
$
|
39,043,365
|
|
|
$
|
40,348
|
|
|
$
|
232,055
|
|
|
December 31, 2014
|
||||||||||||||||||||||
(In thousands)
|
Pass
|
|
Special
mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
12,515,846
|
|
|
$
|
209,215
|
|
|
$
|
426,002
|
|
|
$
|
11,892
|
|
|
$
|
13,162,955
|
|
|
|
||
Leasing
|
399,032
|
|
|
4,868
|
|
|
5,074
|
|
|
—
|
|
|
408,974
|
|
|
|
|||||||
Owner occupied
|
6,844,310
|
|
|
168,423
|
|
|
338,815
|
|
|
—
|
|
|
7,351,548
|
|
|
|
|||||||
Municipal
|
518,513
|
|
|
1,318
|
|
|
1,056
|
|
|
—
|
|
|
520,887
|
|
|
|
|||||||
Total commercial
|
20,277,701
|
|
|
383,824
|
|
|
770,947
|
|
|
11,892
|
|
|
21,444,364
|
|
|
$
|
412,514
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
1,925,685
|
|
|
8,464
|
|
|
52,259
|
|
|
—
|
|
|
1,986,408
|
|
|
|
|||||||
Term
|
7,802,571
|
|
|
96,347
|
|
|
223,324
|
|
|
4,358
|
|
|
8,126,600
|
|
|
|
|||||||
Total commercial real estate
|
9,728,256
|
|
|
104,811
|
|
|
275,583
|
|
|
4,358
|
|
|
10,113,008
|
|
|
145,009
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,304,352
|
|
|
—
|
|
|
16,798
|
|
|
—
|
|
|
2,321,150
|
|
|
|
|||||||
1-4 family residential
|
5,139,018
|
|
|
—
|
|
|
62,222
|
|
|
—
|
|
|
5,201,240
|
|
|
|
|||||||
Construction and other consumer real estate
|
367,932
|
|
|
—
|
|
|
2,610
|
|
|
—
|
|
|
370,542
|
|
|
|
|||||||
Bankcard and other revolving plans
|
399,446
|
|
|
—
|
|
|
1,906
|
|
|
—
|
|
|
401,352
|
|
|
|
|||||||
Other
|
211,811
|
|
|
—
|
|
|
549
|
|
|
—
|
|
|
212,360
|
|
|
|
|||||||
Total consumer loans
|
8,422,559
|
|
|
—
|
|
|
84,085
|
|
|
—
|
|
|
8,506,644
|
|
|
47,140
|
|
||||||
Total
|
$
|
38,428,516
|
|
|
$
|
488,635
|
|
|
$
|
1,130,615
|
|
|
$
|
16,250
|
|
|
$
|
40,064,016
|
|
|
$
|
604,663
|
|
|
December 31, 2013
|
||||||||||||||||||||||
(In thousands)
|
Pass
|
|
Special
mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
11,766,855
|
|
|
$
|
312,652
|
|
|
$
|
369,726
|
|
|
$
|
9,269
|
|
|
$
|
12,458,502
|
|
|
|
||
Leasing
|
380,268
|
|
|
2,050
|
|
|
5,611
|
|
|
—
|
|
|
387,929
|
|
|
|
|||||||
Owner occupied
|
6,929,186
|
|
|
185,617
|
|
|
453,009
|
|
|
—
|
|
|
7,567,812
|
|
|
|
|||||||
Municipal
|
439,432
|
|
|
—
|
|
|
9,986
|
|
|
—
|
|
|
449,418
|
|
|
|
|||||||
Total commercial
|
19,515,741
|
|
|
500,319
|
|
|
838,332
|
|
|
9,269
|
|
|
20,863,661
|
|
|
$
|
469,213
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
2,108,830
|
|
|
15,010
|
|
|
69,443
|
|
|
—
|
|
|
2,193,283
|
|
|
|
|||||||
Term
|
7,708,352
|
|
|
185,045
|
|
|
309,471
|
|
|
—
|
|
|
8,202,868
|
|
|
|
|||||||
Total commercial real estate
|
9,817,182
|
|
|
200,055
|
|
|
378,914
|
|
|
—
|
|
|
10,396,151
|
|
|
216,012
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,123,370
|
|
|
—
|
|
|
23,337
|
|
|
—
|
|
|
2,146,707
|
|
|
|
|||||||
1-4 family residential
|
4,673,863
|
|
|
—
|
|
|
68,102
|
|
|
—
|
|
|
4,741,965
|
|
|
|
|||||||
Construction and other consumer real estate
|
313,899
|
|
|
—
|
|
|
11,198
|
|
|
—
|
|
|
325,097
|
|
|
|
|||||||
Bankcard and other revolving plans
|
358,680
|
|
|
—
|
|
|
2,721
|
|
|
—
|
|
|
361,401
|
|
|
|
|||||||
Other
|
207,032
|
|
|
—
|
|
|
1,351
|
|
|
—
|
|
|
208,383
|
|
|
|
|||||||
Total consumer loans
|
7,676,844
|
|
|
—
|
|
|
106,709
|
|
|
—
|
|
|
7,783,553
|
|
|
61,066
|
|
||||||
Total
|
$
|
37,009,767
|
|
|
$
|
700,374
|
|
|
$
|
1,323,955
|
|
|
$
|
9,269
|
|
|
$
|
39,043,365
|
|
|
$
|
746,291
|
|
|
December 31, 2014
|
|
Year Ended
December 31, 2014 |
|
||||||||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income recognized |
|
||||||||||||||||
with no
allowance
|
|
with
allowance
|
|
|
|
|||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
185,520
|
|
|
$
|
43,257
|
|
|
$
|
103,565
|
|
|
$
|
146,822
|
|
|
$
|
22,852
|
|
|
$
|
185,947
|
|
|
$
|
10,803
|
|
|
Owner occupied
|
198,231
|
|
|
83,179
|
|
|
86,382
|
|
|
169,561
|
|
|
6,087
|
|
|
233,361
|
|
|
18,221
|
|
|
|||||||
Municipal
|
1,535
|
|
|
1,056
|
|
|
—
|
|
|
1,056
|
|
|
—
|
|
|
9,208
|
|
|
—
|
|
|
|||||||
Total commercial
|
385,286
|
|
|
127,492
|
|
|
189,947
|
|
|
317,439
|
|
|
28,939
|
|
|
428,516
|
|
|
29,024
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
60,993
|
|
|
16,500
|
|
|
26,977
|
|
|
43,477
|
|
|
1,773
|
|
|
61,068
|
|
|
6,384
|
|
|
|||||||
Term
|
203,788
|
|
|
96,351
|
|
|
63,740
|
|
|
160,091
|
|
|
2,345
|
|
|
238,507
|
|
|
31,144
|
|
|
|||||||
Total commercial real estate
|
264,781
|
|
|
112,851
|
|
|
90,717
|
|
|
203,568
|
|
|
4,118
|
|
|
299,575
|
|
|
37,528
|
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
30,209
|
|
|
14,798
|
|
|
11,883
|
|
|
26,681
|
|
|
437
|
|
|
25,909
|
|
|
2,426
|
|
|
|||||||
1-4 family residential
|
86,575
|
|
|
37,096
|
|
|
35,831
|
|
|
72,927
|
|
|
8,494
|
|
|
81,526
|
|
|
2,058
|
|
|
|||||||
Construction and other consumer real estate
|
3,902
|
|
|
1,449
|
|
|
1,410
|
|
|
2,859
|
|
|
233
|
|
|
3,167
|
|
|
155
|
|
|
|||||||
Bankcard and other revolving plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
22
|
|
|
|||||||
Other
|
6,580
|
|
|
—
|
|
|
5,254
|
|
|
5,254
|
|
|
133
|
|
|
7,585
|
|
|
1,665
|
|
|
|||||||
Total consumer loans
|
127,266
|
|
|
53,343
|
|
|
54,378
|
|
|
107,721
|
|
|
9,297
|
|
|
118,189
|
|
|
6,326
|
|
|
|||||||
Total
|
$
|
777,333
|
|
|
$
|
293,686
|
|
|
$
|
335,042
|
|
|
$
|
628,728
|
|
|
$
|
42,354
|
|
|
$
|
846,280
|
|
|
$
|
72,878
|
|
|
|
December 31, 2013
|
|
Year Ended
December 31, 2013 |
|
||||||||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
|
Average
recorded
investment
|
|
Interest
income recognized |
|
||||||||||||||||
with no
allowance
|
|
with
allowance
|
|
|
||||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
191,094
|
|
|
$
|
33,503
|
|
|
$
|
126,976
|
|
|
$
|
160,479
|
|
|
$
|
23,391
|
|
|
$
|
197,490
|
|
|
$
|
17,956
|
|
|
Owner occupied
|
277,447
|
|
|
92,997
|
|
|
152,030
|
|
|
245,027
|
|
|
16,656
|
|
|
346,135
|
|
|
19,885
|
|
|
|||||||
Municipal
|
10,465
|
|
|
1,175
|
|
|
8,811
|
|
|
9,986
|
|
|
1,225
|
|
|
10,195
|
|
|
—
|
|
|
|||||||
Total commercial
|
479,006
|
|
|
127,675
|
|
|
287,817
|
|
|
415,492
|
|
|
41,272
|
|
|
553,820
|
|
|
37,841
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
112,863
|
|
|
23,422
|
|
|
55,974
|
|
|
79,396
|
|
|
3,862
|
|
|
148,317
|
|
|
36,363
|
|
|
|||||||
Term
|
371,932
|
|
|
66,533
|
|
|
239,941
|
|
|
306,474
|
|
|
10,251
|
|
|
477,309
|
|
|
52,242
|
|
|
|||||||
Total commercial real estate
|
484,795
|
|
|
89,955
|
|
|
295,915
|
|
|
385,870
|
|
|
14,113
|
|
|
625,626
|
|
|
88,605
|
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
30,344
|
|
|
12,575
|
|
|
13,443
|
|
|
26,018
|
|
|
242
|
|
|
26,926
|
|
|
1,366
|
|
|
|||||||
1-4 family residential
|
99,757
|
|
|
38,838
|
|
|
45,657
|
|
|
84,495
|
|
|
10,290
|
|
|
104,592
|
|
|
1,999
|
|
|
|||||||
Construction and other consumer real estate
|
4,877
|
|
|
2,643
|
|
|
1,090
|
|
|
3,733
|
|
|
176
|
|
|
6,392
|
|
|
152
|
|
|
|||||||
Bankcard and other revolving plans
|
755
|
|
|
726
|
|
|
24
|
|
|
750
|
|
|
1
|
|
|
43
|
|
|
12
|
|
|
|||||||
Other
|
10,419
|
|
|
134
|
|
|
8,061
|
|
|
8,195
|
|
|
112
|
|
|
11,696
|
|
|
2,112
|
|
|
|||||||
Total consumer loans
|
146,152
|
|
|
54,916
|
|
|
68,275
|
|
|
123,191
|
|
|
10,821
|
|
|
149,649
|
|
|
5,641
|
|
|
|||||||
Total
|
$
|
1,109,953
|
|
|
$
|
272,546
|
|
|
$
|
652,007
|
|
|
$
|
924,553
|
|
|
$
|
66,206
|
|
|
$
|
1,329,095
|
|
|
$
|
132,087
|
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
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
|
$
|
2,611
|
|
|
$
|
6,509
|
|
|
$
|
18
|
|
|
$
|
3,203
|
|
|
$
|
3,855
|
|
|
$
|
34,585
|
|
|
$
|
50,781
|
|
Owner occupied
|
19,981
|
|
|
1,124
|
|
|
960
|
|
|
1,251
|
|
|
10,960
|
|
|
17,505
|
|
|
51,781
|
|
|||||||
Total commercial
|
22,592
|
|
|
7,633
|
|
|
978
|
|
|
4,454
|
|
|
14,815
|
|
|
52,090
|
|
|
102,562
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
521
|
|
|
19,854
|
|
|
20,375
|
|
|||||||
Term
|
7,328
|
|
|
9,027
|
|
|
179
|
|
|
3,153
|
|
|
2,546
|
|
|
39,007
|
|
|
61,240
|
|
|||||||
Total commercial real estate
|
7,328
|
|
|
9,027
|
|
|
179
|
|
|
3,153
|
|
|
3,067
|
|
|
58,861
|
|
|
81,615
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
742
|
|
|
70
|
|
|
11,320
|
|
|
—
|
|
|
166
|
|
|
1,281
|
|
|
13,579
|
|
|||||||
1-4 family residential
|
2,425
|
|
|
552
|
|
|
6,828
|
|
|
446
|
|
|
753
|
|
|
34,719
|
|
|
45,723
|
|
|||||||
Construction and other consumer real estate
|
290
|
|
|
422
|
|
|
42
|
|
|
90
|
|
|
—
|
|
|
1,227
|
|
|
2,071
|
|
|||||||
Total consumer loans
|
3,457
|
|
|
1,044
|
|
|
18,190
|
|
|
536
|
|
|
919
|
|
|
37,227
|
|
|
61,373
|
|
|||||||
Total accruing
|
33,377
|
|
|
17,704
|
|
|
19,347
|
|
|
8,143
|
|
|
18,801
|
|
|
148,178
|
|
|
245,550
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
442
|
|
|
576
|
|
|
—
|
|
|
611
|
|
|
5,199
|
|
|
20,410
|
|
|
27,238
|
|
|||||||
Owner occupied
|
2,714
|
|
|
1,219
|
|
|
—
|
|
|
883
|
|
|
2,852
|
|
|
12,040
|
|
|
19,708
|
|
|||||||
Municipal
|
—
|
|
|
1,056
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,056
|
|
|||||||
Total commercial
|
3,156
|
|
|
2,851
|
|
|
—
|
|
|
1,494
|
|
|
8,051
|
|
|
32,450
|
|
|
48,002
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
11,080
|
|
|
68
|
|
|
—
|
|
|
93
|
|
|
3,300
|
|
|
6,427
|
|
|
20,968
|
|
|||||||
Term
|
2,851
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
277
|
|
|
4,607
|
|
|
7,735
|
|
|||||||
Total commercial real estate
|
13,931
|
|
|
68
|
|
|
—
|
|
|
93
|
|
|
3,577
|
|
|
11,034
|
|
|
28,703
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
420
|
|
|
203
|
|
|
—
|
|
|
399
|
|
|
1,022
|
|
|||||||
1-4 family residential
|
3,378
|
|
|
1,029
|
|
|
1,951
|
|
|
191
|
|
|
3,527
|
|
|
9,413
|
|
|
19,489
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
563
|
|
|||||||
Bankcard and other revolving plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total consumer loans
|
3,378
|
|
|
1,492
|
|
|
2,371
|
|
|
394
|
|
|
3,527
|
|
|
9,912
|
|
|
21,074
|
|
|||||||
Total nonaccruing
|
20,465
|
|
|
4,411
|
|
|
2,371
|
|
|
1,981
|
|
|
15,155
|
|
|
53,396
|
|
|
97,779
|
|
|||||||
Total
|
$
|
53,842
|
|
|
$
|
22,115
|
|
|
$
|
21,718
|
|
|
$
|
10,124
|
|
|
$
|
33,956
|
|
|
$
|
201,574
|
|
|
$
|
343,329
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||
|
Recorded investment resulting from the following modification types:
|
|
|
||||||||||||||||||||||||
(In thousands)
|
Interest
rate below
market
|
|
Maturity
or term
extension
|
|
Principal
forgiveness
|
|
Payment
deferral
|
|
Other
1
|
|
Multiple
modification
types
2
|
|
Total
|
||||||||||||||
Accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
1,143
|
|
|
$
|
9,848
|
|
|
$
|
11,491
|
|
|
$
|
3,217
|
|
|
$
|
4,308
|
|
|
$
|
53,117
|
|
|
$
|
83,124
|
|
Owner occupied
|
22,841
|
|
|
1,482
|
|
|
987
|
|
|
1,291
|
|
|
9,659
|
|
|
23,576
|
|
|
59,836
|
|
|||||||
Total commercial
|
23,984
|
|
|
11,330
|
|
|
12,478
|
|
|
4,508
|
|
|
13,967
|
|
|
76,693
|
|
|
142,960
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
1,067
|
|
|
8,231
|
|
|
—
|
|
|
1,063
|
|
|
4,119
|
|
|
28,295
|
|
|
42,775
|
|
|||||||
Term
|
7,542
|
|
|
9,241
|
|
|
190
|
|
|
3,783
|
|
|
14,932
|
|
|
61,024
|
|
|
96,712
|
|
|||||||
Total commercial real estate
|
8,609
|
|
|
17,472
|
|
|
190
|
|
|
4,846
|
|
|
19,051
|
|
|
89,319
|
|
|
139,487
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
743
|
|
|
—
|
|
|
9,438
|
|
|
—
|
|
|
323
|
|
|
332
|
|
|
10,836
|
|
|||||||
1-4 family residential
|
2,628
|
|
|
997
|
|
|
6,814
|
|
|
643
|
|
|
3,083
|
|
|
35,869
|
|
|
50,034
|
|
|||||||
Construction and other consumer real estate
|
128
|
|
|
329
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
1,514
|
|
|
1,982
|
|
|||||||
Total consumer loans
|
3,499
|
|
|
1,326
|
|
|
16,263
|
|
|
643
|
|
|
3,406
|
|
|
37,715
|
|
|
62,852
|
|
|||||||
Total accruing
|
36,092
|
|
|
30,128
|
|
|
28,931
|
|
|
9,997
|
|
|
36,424
|
|
|
203,727
|
|
|
345,299
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
2,028
|
|
|
6,989
|
|
|
—
|
|
|
473
|
|
|
8,948
|
|
|
10,395
|
|
|
28,833
|
|
|||||||
Owner occupied
|
3,020
|
|
|
1,489
|
|
|
1,043
|
|
|
1,593
|
|
|
10,482
|
|
|
14,927
|
|
|
32,554
|
|
|||||||
Total commercial
|
5,048
|
|
|
8,478
|
|
|
1,043
|
|
|
2,066
|
|
|
19,430
|
|
|
25,322
|
|
|
61,387
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
11,699
|
|
|
1,555
|
|
|
—
|
|
|
—
|
|
|
5,303
|
|
|
8,617
|
|
|
27,174
|
|
|||||||
Term
|
2,126
|
|
|
—
|
|
|
—
|
|
|
1,943
|
|
|
315
|
|
|
14,861
|
|
|
19,245
|
|
|||||||
Total commercial real estate
|
13,825
|
|
|
1,555
|
|
|
—
|
|
|
1,943
|
|
|
5,618
|
|
|
23,478
|
|
|
46,419
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1,036
|
|
|
—
|
|
|
221
|
|
|
—
|
|
|
1,257
|
|
|||||||
1-4 family residential
|
4,315
|
|
|
1,396
|
|
|
1,606
|
|
|
—
|
|
|
3,901
|
|
|
14,109
|
|
|
25,327
|
|
|||||||
Construction and other consumer real estate
|
4
|
|
|
1,260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
229
|
|
|
1,493
|
|
|||||||
Bankcard and other revolving plans
|
—
|
|
|
252
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
252
|
|
|||||||
Total consumer loans
|
4,319
|
|
|
2,908
|
|
|
2,642
|
|
|
—
|
|
|
4,122
|
|
|
14,338
|
|
|
28,329
|
|
|||||||
Total nonaccruing
|
23,192
|
|
|
12,941
|
|
|
3,685
|
|
|
4,009
|
|
|
29,170
|
|
|
63,138
|
|
|
136,135
|
|
|||||||
Total
|
$
|
59,284
|
|
|
$
|
43,069
|
|
|
$
|
32,616
|
|
|
$
|
14,006
|
|
|
$
|
65,594
|
|
|
$
|
266,865
|
|
|
$
|
481,434
|
|
(In thousands)
|
|
2014
|
|
2013
|
||||
Commercial:
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
(84
|
)
|
|
$
|
—
|
|
Owner occupied
|
|
(519
|
)
|
|
(390
|
)
|
||
Total commercial
|
|
(603
|
)
|
|
(390
|
)
|
||
Commercial real estate:
|
|
|
|
|
||||
Construction and land development
|
|
(197
|
)
|
|
(112
|
)
|
||
Term
|
|
(573
|
)
|
|
(742
|
)
|
||
Total commercial real estate
|
|
(770
|
)
|
|
(854
|
)
|
||
Consumer:
|
|
|
|
|
||||
Home equity credit line
|
|
(5
|
)
|
|
(10
|
)
|
||
1-4 family residential
|
|
(1,130
|
)
|
|
(1,248
|
)
|
||
Construction and other consumer real estate
|
|
(32
|
)
|
|
(36
|
)
|
||
Total consumer loans
|
|
(1,167
|
)
|
|
(1,294
|
)
|
||
Total decrease to interest income
1
|
|
$
|
(2,540
|
)
|
|
$
|
(2,538
|
)
|
1
|
Calculated based on the difference between the modified rate and the premodified rate applied to the recorded investment.
|
(In thousands)
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
1,008
|
|
|
$
|
1,008
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Owner occupied
|
|
—
|
|
|
378
|
|
|
378
|
|
|
—
|
|
|
430
|
|
|
430
|
|
||||||
Total commercial
|
|
—
|
|
|
1,386
|
|
|
1,386
|
|
|
—
|
|
|
430
|
|
|
430
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,676
|
|
|
1,676
|
|
||||||
Term
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,676
|
|
|
1,676
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
|
—
|
|
|
201
|
|
|
201
|
|
|
—
|
|
|
342
|
|
|
342
|
|
||||||
1-4 family residential
|
|
192
|
|
|
310
|
|
|
502
|
|
|
—
|
|
|
2,592
|
|
|
2,592
|
|
||||||
Construction and other consumer real estate
|
|
—
|
|
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer loans
|
|
192
|
|
|
566
|
|
|
758
|
|
|
—
|
|
|
2,934
|
|
|
2,934
|
|
||||||
Total
|
|
$
|
192
|
|
|
$
|
1,952
|
|
|
$
|
2,144
|
|
|
$
|
—
|
|
|
$
|
5,040
|
|
|
$
|
5,040
|
|
|
December 31,
|
||||||
(In thousands)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Commercial
|
$
|
104,942
|
|
|
$
|
150,191
|
|
Commercial real estate
|
118,217
|
|
|
233,720
|
|
||
Consumer
|
17,910
|
|
|
28,608
|
|
||
Outstanding balance
|
$
|
241,069
|
|
|
$
|
412,519
|
|
|
|
|
|
||||
Carrying amount
|
$
|
179,299
|
|
|
$
|
311,797
|
|
Less ALLL
|
2,800
|
|
|
6,478
|
|
||
Carrying amount, net
|
$
|
176,499
|
|
|
$
|
305,319
|
|
(In thousands)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Balance at beginning of year
|
$
|
77,528
|
|
|
$
|
134,461
|
|
Accretion
|
(58,140
|
)
|
|
(111,951
|
)
|
||
Reclassification from nonaccretable difference
|
17,647
|
|
|
36,467
|
|
||
Disposals and other
|
8,020
|
|
|
18,551
|
|
||
Balance at end of year
|
$
|
45,055
|
|
|
$
|
77,528
|
|
7.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Notional
amount
|
|
Fair value
|
|
Notional
amount
|
|
Fair value
|
||||||||||||||||
(In thousands)
|
Other
assets
|
|
Other
liabilities
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
1
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
275,000
|
|
|
$
|
1,508
|
|
|
$
|
123
|
|
|
$
|
100,000
|
|
|
$
|
202
|
|
|
$
|
583
|
|
Total derivatives designated as hedging instruments
|
275,000
|
|
|
1,508
|
|
|
123
|
|
|
100,000
|
|
|
202
|
|
|
583
|
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
65,850
|
|
|
420
|
|
|
421
|
|
||||||
Interest rate swaps for customers
2
|
2,770,052
|
|
|
48,287
|
|
|
50,669
|
|
|
2,902,776
|
|
|
55,447
|
|
|
54,688
|
|
||||||
Foreign exchange
|
443,721
|
|
|
16,625
|
|
|
15,272
|
|
|
751,066
|
|
|
9,614
|
|
|
8,643
|
|
||||||
Total return swap
|
—
|
|
|
—
|
|
|
—
|
|
|
1,159,686
|
|
|
—
|
|
|
4,062
|
|
||||||
Total derivatives not designated as hedging instruments
|
3,213,773
|
|
|
64,912
|
|
|
65,941
|
|
|
4,879,378
|
|
|
65,481
|
|
|
67,814
|
|
||||||
Total derivatives
|
$
|
3,488,773
|
|
|
$
|
66,420
|
|
|
$
|
66,064
|
|
|
$
|
4,979,378
|
|
|
$
|
65,683
|
|
|
$
|
68,397
|
|
|
Year Ended December 31, 2014
|
|
Year Ended December 31, 2013
|
||||||||||||||||||||||||||||
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
(In thousands)
|
OCI
|
|
Reclassified
from AOCI
to interest
income
|
|
Noninterest
income
(expense)
|
|
Offset to
interest
expense
|
|
OCI
|
|
Reclassified
from AOCI
to interest
income
|
|
Noninterest
income
(expense)
|
|
Offset to
interest
expense
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
$
|
4,361
|
|
|
$
|
2,594
|
|
|
|
|
|
|
$
|
(225
|
)
|
|
$
|
2,647
|
|
|
|
|
|
||||||||
|
4,361
|
|
|
2,594
|
|
3
|
|
|
|
|
|
(225
|
)
|
|
2,647
|
|
3
|
|
|
|
|
||||||||||
Liability derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Terminated swaps on long-term debt
|
|
|
|
|
|
|
$
|
(2,309
|
)
|
|
|
|
|
|
|
|
$
|
3,120
|
|
||||||||||||
Total derivatives designated as hedging instruments
|
4,361
|
|
|
2,594
|
|
|
|
|
|
(2,309
|
)
|
|
(225
|
)
|
|
2,647
|
|
|
|
|
|
3,120
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
|
|
|
|
$
|
355
|
|
|
|
|
|
|
|
|
$
|
(493
|
)
|
|
|
||||||||||||
Interest rate swaps for customers
2
|
|
|
|
|
467
|
|
|
|
|
|
|
|
|
10,918
|
|
|
|
||||||||||||||
Futures contracts
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
2
|
|
|
|
||||||||||||||
Foreign exchange
|
|
|
|
|
8,344
|
|
|
|
|
|
|
|
|
9,190
|
|
|
|
||||||||||||||
Total return swap
|
|
|
|
|
(7,894
|
)
|
|
|
|
|
|
|
|
(21,753
|
)
|
|
|
||||||||||||||
Total derivatives not designated as hedging instruments
|
|
|
|
|
1,272
|
|
|
|
|
|
|
|
|
(2,136
|
)
|
|
|
||||||||||||||
Total derivatives
|
$
|
4,361
|
|
|
$
|
2,594
|
|
|
$
|
1,272
|
|
|
$
|
(2,309
|
)
|
|
$
|
(225
|
)
|
|
$
|
2,647
|
|
|
$
|
(2,136
|
)
|
|
$
|
3,120
|
|
8.
|
PREMISES AND EQUIPMENT
|
(In thousands)
|
December 31,
|
||||||
2014
|
|
2013
|
|||||
|
|
|
|
||||
Land
|
$
|
233,300
|
|
|
$
|
185,119
|
|
Buildings
|
551,603
|
|
|
509,151
|
|
||
Furniture and equipment
|
458,703
|
|
|
455,625
|
|
||
Leasehold improvements
|
133,624
|
|
|
129,056
|
|
||
Software
|
239,670
|
|
|
208,931
|
|
||
Total
|
1,616,900
|
|
|
1,487,882
|
|
||
Less accumulated depreciation and amortization
|
787,091
|
|
|
761,510
|
|
||
Net book value
|
$
|
829,809
|
|
|
$
|
726,372
|
|
9.
|
GOODWILL AND OTHER INTANGIBLE ASSETS
|
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
||||||||||||||||||
(In thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Core deposit intangibles
|
|
$
|
170,688
|
|
|
$
|
180,290
|
|
|
$
|
(146,842
|
)
|
|
$
|
(146,557
|
)
|
|
$
|
23,846
|
|
|
$
|
33,733
|
|
Customer relationships and other intangibles
|
|
28,014
|
|
|
29,064
|
|
|
(26,340
|
)
|
|
(26,353
|
)
|
|
1,674
|
|
|
2,711
|
|
||||||
Total
|
|
$
|
198,702
|
|
|
$
|
209,354
|
|
|
$
|
(173,182
|
)
|
|
$
|
(172,910
|
)
|
|
$
|
25,520
|
|
|
$
|
36,444
|
|
(In thousands)
|
|
Zions Bank
|
|
CB&T
|
|
Amegy
|
|
Consolidated Company
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2012
|
|
$
|
19,514
|
|
|
$
|
379,024
|
|
|
$
|
615,591
|
|
|
$
|
1,014,129
|
|
Impairment losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at December 31, 2013
|
|
19,514
|
|
|
379,024
|
|
|
615,591
|
|
|
1,014,129
|
|
||||
Impairment losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at December 31, 2014
|
|
$
|
19,514
|
|
|
$
|
379,024
|
|
|
$
|
615,591
|
|
|
$
|
1,014,129
|
|
10.
|
DEPOSITS
|
(In thousands)
|
|
|
||
|
|
|
||
2015
|
|
$
|
1,933,406
|
|
2016
|
|
266,023
|
|
|
2017
|
|
126,377
|
|
|
2018
|
|
115,281
|
|
|
2019
|
|
100,763
|
|
|
Thereafter
|
|
662
|
|
|
Total
|
|
$
|
2,542,512
|
|
11.
|
SHORT-TERM BORROWINGS
|
(Amounts in thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Federal funds purchased
|
|
|
|
|
|
|
||||||
Average amount outstanding
|
|
$
|
104,358
|
|
|
$
|
150,217
|
|
|
$
|
280,859
|
|
Weighted average rate
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.19
|
%
|
|||
Highest month-end balance
|
|
124,093
|
|
|
206,450
|
|
|
560,674
|
|
|||
Year-end balance
|
|
100,193
|
|
|
129,131
|
|
|
175,468
|
|
|||
Weighted average rate on outstandings at year-end
|
|
0.15
|
%
|
|
0.14
|
%
|
|
0.13
|
%
|
|||
|
|
|
|
|
|
|
||||||
Security repurchase agreements
|
|
|
|
|
|
|
||||||
Average amount outstanding
|
|
116,190
|
|
|
124,929
|
|
|
190,365
|
|
|||
Weighted average rate
|
|
0.06
|
%
|
|
0.05
|
%
|
|
0.04
|
%
|
|||
Highest month-end balance
|
|
156,710
|
|
|
137,611
|
|
|
264,187
|
|
|||
Year-end balance
|
|
118,600
|
|
|
137,611
|
|
|
145,010
|
|
|||
Weighted average rate on outstandings at year-end
|
|
0.13
|
%
|
|
0.05
|
%
|
|
0.04
|
%
|
|||
|
|
|
|
|
|
|
||||||
Other short-term borrowings
, year-end balances
|
|
|
|
|
|
|
||||||
Securities sold, not yet purchased
|
|
24,230
|
|
|
73,606
|
|
|
26,735
|
|
|||
Other
|
|
1,200
|
|
|
—
|
|
|
5,409
|
|
|||
Total federal funds and other short-term borrowings
|
|
$
|
244,223
|
|
|
$
|
340,348
|
|
|
$
|
352,622
|
|
12.
|
LONG-TERM DEBT
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
||||
Junior subordinated debentures related to trust preferred securities
|
|
$
|
168,043
|
|
|
$
|
168,043
|
|
Convertible subordinated notes
|
|
132,838
|
|
|
184,147
|
|
||
Subordinated notes
|
|
335,798
|
|
|
443,231
|
|
||
Senior notes
|
|
432,385
|
|
|
1,454,779
|
|
||
FHLB advances
|
|
22,156
|
|
|
22,736
|
|
||
Capital lease obligations and other
|
|
1,062
|
|
|
639
|
|
||
Total
|
|
$
|
1,092,282
|
|
|
$
|
2,273,575
|
|
(Amounts in thousands)
|
|
Balance
|
|
Coupon rate
1
|
|
Maturity
|
||
|
|
|
|
|
|
|
||
Amegy Statutory Trust I
|
|
$
|
51,547
|
|
|
3mL+2.85% (3.09%)
|
|
Dec 2033
|
Amegy Statutory Trust II
|
|
36,083
|
|
|
3mL+1.90% (2.13%)
|
|
Oct 2034
|
|
Amegy Statutory Trust III
|
|
61,856
|
|
|
3mL+1.78% (2.02%)
|
|
Dec 2034
|
|
Stockmen’s Statutory Trust II
|
|
7,732
|
|
|
3mL+3.15% (3.40%)
|
|
Mar 2033
|
|
Stockmen’s Statutory Trust III
|
|
7,732
|
|
|
3mL+2.89% (3.13%)
|
|
Mar 2034
|
|
Intercontinental Statutory Trust I
|
|
3,093
|
|
|
3mL+2.85% (3.09%)
|
|
Mar 2034
|
|
Total
|
|
$
|
168,043
|
|
|
|
|
|
1
|
Designation of “3mL” is three-month LIBOR; effective interest rate at the beginning of the accrual period commencing on or before
December 31, 2014
is shown in parenthesis.
|
(Amounts in thousands)
|
|
Convertible
subordinated notes
|
|
Subordinated notes
|
|
|
||||||||||||
Coupon rate
|
|
Balance
|
|
Par amount
|
|
Balance
|
|
Par amount
|
|
Maturity
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
6.00%
|
|
$
|
70,432
|
|
|
$
|
79,291
|
|
|
$
|
32,894
|
|
|
$
|
32,366
|
|
|
Sep 2015
|
5.50%
|
|
62,406
|
|
|
71,592
|
|
|
53,013
|
|
|
52,078
|
|
|
Nov 2015
|
||||
5.65%
|
|
|
|
|
|
162,000
|
|
|
162,000
|
|
|
Nov 2023
|
||||||
6.95%
|
|
|
|
|
|
87,891
|
|
|
87,891
|
|
|
Sep 2028
|
||||||
Total
|
|
$
|
132,838
|
|
|
$
|
150,883
|
|
|
$
|
335,798
|
|
|
$
|
334,335
|
|
|
|
(In thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
$
|
42,444
|
|
|
$
|
149,333
|
|
|
$
|
224,206
|
|
Discount amortization on convertible subordinated debt
|
|
(24,397
|
)
|
|
(48,378
|
)
|
|
(43,341
|
)
|
|||
Accelerated discount amortization on convertible subordinated debt
|
|
(1
|
)
|
|
(368
|
)
|
|
(31,532
|
)
|
|||
Accelerated discount amortization resulting from tender offer for debt repurchases (subsequently discussed)
|
|
—
|
|
|
(58,143
|
)
|
|
—
|
|
|||
Total amortization
|
|
(24,398
|
)
|
|
(106,889
|
)
|
|
(74,873
|
)
|
|||
Balance at end of year
|
|
$
|
18,046
|
|
|
$
|
42,444
|
|
|
$
|
149,333
|
|
(Amounts in thousands)
|
|
|
|
|
||||||
Coupon rate
|
|
Balance
|
|
Par amount
|
|
Maturity
|
||||
|
|
|
|
|
|
|
||||
4.0%
|
|
$
|
88,697
|
|
|
$
|
89,360
|
|
|
June 2016
|
4.5%
|
|
160,503
|
|
|
163,857
|
|
|
March 2017
|
||
4.5%
|
|
144,876
|
|
|
145,231
|
|
|
June 2023
|
||
3.30% - 3.70%
|
|
38,309
|
|
|
38,389
|
|
|
Feb - Jul 2018
|
||
Total
|
|
$
|
432,385
|
|
|
$
|
436,837
|
|
|
|
(Amounts in thousands)
|
|
2014
|
|
2013
|
||||||||
Note type
|
|
Coupon rate
|
|
Par amount
|
|
Coupon rate
|
|
Par amount
|
||||
|
|
|
|
|
|
|
|
|
||||
Senior notes
|
|
7.75%
|
|
$
|
240,769
|
|
|
7.75%
|
|
$
|
257,615
|
|
|
|
4.0%, 4.5%
|
|
499,980
|
|
|
|
|
|
|||
|
|
3.5%
|
|
50,000
|
|
|
|
|
|
|||
|
|
2.55% - 5.50%
|
|
247,512
|
|
|
|
|
|
|||
|
|
|
|
1,038,261
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Subordinated notes
|
|
5.65%
|
|
30,173
|
|
|
5.5%, 6.0%
|
|
231,047
|
|
||
|
|
3mL+1.25%
|
|
75,000
|
|
|
|
|
|
|||
|
|
|
|
105,173
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Convertible subordinated notes
|
|
5.65%
|
|
75,674
|
|
|
5.5%, 6.0%
|
|
19,937
|
|
||
Trust preferred
|
|
|
|
—
|
|
|
8.0%
|
|
285,000
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
|
|
$
|
1,219,108
|
|
|
|
|
$
|
793,599
|
|
(In thousands)
|
|
Consolidated
|
|
Parent only
|
||||
|
|
|
|
|
||||
2015
|
|
$
|
217,392
|
|
|
$
|
217,240
|
|
2016
|
|
88,869
|
|
|
88,698
|
|
||
2017
|
|
160,700
|
|
|
160,503
|
|
||
2018
|
|
38,534
|
|
|
38,309
|
|
||
2019
|
|
259
|
|
|
—
|
|
||
Thereafter
|
|
585,024
|
|
|
410,231
|
|
||
Total
|
|
$
|
1,090,778
|
|
|
$
|
914,981
|
|
13.
|
SHAREHOLDERS’ EQUITY
|
|
|
|
|
Statement of income (SI) Balance sheet
(BS)
|
|
|
||||||||||
(In thousands)
|
|
Amounts reclassified from AOCI
1
|
|
|
|
|||||||||||
Details about AOCI components
|
|
2014
|
|
2013
|
|
2012
|
|
|
Affected line item
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Net realized gains (losses) on investment securities
|
|
$
|
10,419
|
|
|
$
|
(2,898
|
)
|
|
$
|
19,544
|
|
|
SI
|
|
Fixed income securities gains (losses), net
|
Income tax expense (benefit)
|
|
3,971
|
|
|
(1,123
|
)
|
|
7,340
|
|
|
|
|
|
|||
|
|
6,448
|
|
|
(1,775
|
)
|
|
12,204
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Net unrealized losses on investment
securities
|
|
(27
|
)
|
|
(164,732
|
)
|
|
(103,720
|
)
|
|
SI
|
|
Net impairment losses on investment securities
|
|||
Income tax benefit
|
|
(10
|
)
|
|
(64,829
|
)
|
|
(40,156
|
)
|
|
|
|
|
|||
|
|
(17
|
)
|
|
(99,903
|
)
|
|
(63,564
|
)
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Accretion of securities with noncredit-related impairment losses not expected to be sold
|
|
(1,878
|
)
|
|
(2,106
|
)
|
|
(11,351
|
)
|
|
BS
|
|
Investment securities, held-to-maturity
|
|||
Deferred income taxes
|
|
767
|
|
|
848
|
|
|
4,488
|
|
|
BS
|
|
Other assets
|
|||
|
|
$
|
5,320
|
|
|
$
|
(102,936
|
)
|
|
$
|
(58,223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net unrealized gains on derivative instruments
|
|
$
|
2,594
|
|
|
$
|
2,647
|
|
|
$
|
13,062
|
|
|
SI
|
|
Interest and fees on loans
|
Income tax expense
|
|
989
|
|
|
1,067
|
|
|
5,220
|
|
|
|
|
|
|||
|
|
$
|
1,605
|
|
|
$
|
1,580
|
|
|
$
|
7,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of net actuarial loss
|
|
$
|
(2,843
|
)
|
|
$
|
(8,127
|
)
|
|
$
|
(8,983
|
)
|
|
SI
|
|
Salaries and employee benefits
|
Amortization of prior service credit (cost)
|
|
(50
|
)
|
|
27
|
|
|
120
|
|
|
SI
|
|
Salaries and employee benefits
|
|||
Income tax benefit
|
|
(1,103
|
)
|
|
(3,194
|
)
|
|
(3,497
|
)
|
|
|
|
|
|||
|
|
$
|
(1,790
|
)
|
|
$
|
(4,906
|
)
|
|
$
|
(5,366
|
)
|
|
|
|
|
14.
|
INCOME TAXES
|
(In thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Federal:
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
178,450
|
|
|
$
|
173,418
|
|
|
$
|
185,404
|
|
Deferred
|
|
14,277
|
|
|
(51,475
|
)
|
|
(20,086
|
)
|
|||
|
|
192,727
|
|
|
121,943
|
|
|
165,318
|
|
|||
State:
|
|
|
|
|
|
|
||||||
Current
|
|
18,573
|
|
|
29,676
|
|
|
(1,775
|
)
|
|||
Deferred
|
|
11,661
|
|
|
(8,642
|
)
|
|
29,873
|
|
|||
|
|
30,234
|
|
|
21,034
|
|
|
28,098
|
|
|||
|
|
$
|
222,961
|
|
|
$
|
142,977
|
|
|
$
|
193,416
|
|
(In thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
|
||||||
Income tax expense at statutory federal rate
|
|
$
|
217,498
|
|
|
$
|
142,251
|
|
|
$
|
189,548
|
|
State income taxes, net
|
|
19,652
|
|
|
13,672
|
|
|
18,264
|
|
|||
Other nondeductible expenses
|
|
2,949
|
|
|
2,574
|
|
|
11,291
|
|
|||
Nontaxable income
|
|
(17,869
|
)
|
|
(17,071
|
)
|
|
(20,137
|
)
|
|||
Tax credits and other taxes
|
|
(1,717
|
)
|
|
(2,628
|
)
|
|
(3,172
|
)
|
|||
Other
|
|
2,448
|
|
|
4,179
|
|
|
(2,378
|
)
|
|||
Total
|
|
$
|
222,961
|
|
|
$
|
142,977
|
|
|
$
|
193,416
|
|
(In thousands)
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
|||||
Gross deferred tax assets:
|
|
|
|
|
||||
Book loan loss deduction in excess of tax
|
|
$
|
259,855
|
|
|
$
|
315,025
|
|
Pension and postretirement
|
|
25,142
|
|
|
16,380
|
|
||
Deferred compensation
|
|
92,864
|
|
|
85,846
|
|
||
Other real estate owned
|
|
1,252
|
|
|
7,099
|
|
||
Security investments and derivative fair value adjustments
|
|
22,438
|
|
|
155,900
|
|
||
Net operating losses, capital losses and tax credits
|
|
5,442
|
|
|
6,111
|
|
||
FDIC-supported transactions
|
|
19,084
|
|
|
10,488
|
|
||
Other
|
|
43,243
|
|
|
49,675
|
|
||
|
|
469,320
|
|
|
646,524
|
|
||
Valuation allowance
|
|
(4,261
|
)
|
|
(4,261
|
)
|
||
Total deferred tax assets
|
|
465,059
|
|
|
642,263
|
|
||
|
|
|
|
|
||||
Gross deferred tax liabilities:
|
|
|
|
|
||||
Core deposits and purchase accounting
|
|
(8,852
|
)
|
|
(13,556
|
)
|
||
Premises and equipment, due to differences in depreciation
|
|
(10,361
|
)
|
|
(13,014
|
)
|
||
FHLB stock dividends
|
|
(12,376
|
)
|
|
(12,668
|
)
|
||
Leasing operations
|
|
(80,383
|
)
|
|
(94,637
|
)
|
||
Prepaid expenses
|
|
(9,337
|
)
|
|
(8,909
|
)
|
||
Prepaid pension reserves
|
|
(18,333
|
)
|
|
(16,909
|
)
|
||
Subordinated debt modification
|
|
(64,030
|
)
|
|
(148,820
|
)
|
||
Deferred loan fees
|
|
(22,774
|
)
|
|
(21,591
|
)
|
||
Equity investments
|
|
(10,470
|
)
|
|
(5,225
|
)
|
||
Other
|
|
(3,884
|
)
|
|
(2,553
|
)
|
||
Total deferred tax liabilities
|
|
(240,800
|
)
|
|
(337,882
|
)
|
||
Net deferred tax assets
|
|
$
|
224,259
|
|
|
$
|
304,381
|
|
(In thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
$
|
2,385
|
|
|
$
|
2,385
|
|
|
$
|
13,722
|
|
Tax positions related to current year:
|
|
|
|
|
|
|
||||||
Additions
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax positions related to prior years:
|
|
|
|
|
|
|
||||||
Additions
|
|
870
|
|
|
—
|
|
|
—
|
|
|||
Reductions
|
|
—
|
|
|
—
|
|
|
(11,337
|
)
|
|||
Settlements with taxing authorities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Lapses in statutes of limitations
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at end of year
|
|
$
|
3,255
|
|
|
$
|
2,385
|
|
|
$
|
2,385
|
|
15.
|
NET EARNINGS PER COMMON SHARE
|
(In thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2012
|
||||||
Basic:
|
|
|
|
|
|
|
||||||
Net income applicable to controlling interest
|
|
$
|
398,462
|
|
|
$
|
263,791
|
|
|
$
|
349,516
|
|
Less common and preferred dividends
|
|
103,111
|
|
|
(6,094
|
)
|
|
178,277
|
|
|||
Undistributed earnings
|
|
295,351
|
|
|
269,885
|
|
|
171,239
|
|
|||
Less undistributed earnings applicable to nonvested shares
|
|
2,933
|
|
|
2,832
|
|
|
1,600
|
|
|||
Undistributed earnings applicable to common shares
|
|
292,418
|
|
|
267,053
|
|
|
169,639
|
|
|||
Distributed earnings applicable to common shares
|
|
30,983
|
|
|
23,916
|
|
|
7,321
|
|
|||
Total earnings applicable to common shares
|
|
$
|
323,401
|
|
|
$
|
290,969
|
|
|
$
|
176,960
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
|
192,207
|
|
|
183,844
|
|
|
183,081
|
|
|||
|
|
|
|
|
|
|
||||||
Net earnings per common share
|
|
$
|
1.68
|
|
|
$
|
1.58
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
||||||
Diluted:
|
|
|
|
|
|
|
||||||
Total earnings applicable to common shares
|
|
$
|
323,401
|
|
|
$
|
290,969
|
|
|
$
|
176,960
|
|
Additional undistributed earnings allocated to incremental shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Diluted earnings applicable to common shares
|
|
$
|
323,401
|
|
|
$
|
290,969
|
|
|
$
|
176,960
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
|
192,207
|
|
|
183,844
|
|
|
183,081
|
|
|||
Additional weighted average dilutive shares
|
|
582
|
|
|
453
|
|
|
155
|
|
|||
Weighted average diluted common shares outstanding
|
|
192,789
|
|
|
184,297
|
|
|
183,236
|
|
|||
|
|
|
|
|
|
|
||||||
Net earnings per common share
|
|
$
|
1.68
|
|
|
$
|
1.58
|
|
|
$
|
0.97
|
|
16.
|
SHARE-BASED COMPENSATION
|
(In thousands)
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
|
||||||
Compensation expense
|
|
$
|
23,632
|
|
|
$
|
28,052
|
|
|
$
|
31,533
|
|
Reduction of income tax expense
|
|
7,767
|
|
|
9,123
|
|
|
10,724
|
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Weighted average of fair value for options granted
|
|
$
|
6.10
|
|
|
$
|
6.79
|
|
|
$
|
4.88
|
|
Weighted average assumptions used:
|
|
|
|
|
|
|
||||||
Expected dividend yield
|
|
1.3
|
%
|
|
1.3
|
%
|
|
1.5
|
%
|
|||
Expected volatility
|
|
25.1
|
%
|
|
32.5
|
%
|
|
35.0
|
%
|
|||
Risk-free interest rate
|
|
1.55
|
%
|
|
0.78
|
%
|
|
0.67
|
%
|
|||
Expected life (in years)
|
|
5.0
|
|
|
4.5
|
|
|
4.5
|
|
|
|
Outstanding stock options
|
|
Exercisable stock options
|
||||||||||||||
|
|
Number of shares
|
|
Weighted average exercise price
|
|
Weighted average remaining contractual life (years)
|
|
|||||||||||
Exercise price range
|
|
|
|
Number of shares
|
|
Weighted average exercise price
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
$0.32 to $19.99
|
|
802,357
|
|
|
$
|
17.33
|
|
|
|
3.5
|
1
|
|
553,234
|
|
|
$
|
16.64
|
|
$20.00 to $24.99
|
|
889,257
|
|
|
23.84
|
|
|
|
2.9
|
|
|
870,455
|
|
|
23.83
|
|
||
$25.00 to $29.99
|
|
2,426,924
|
|
|
28.02
|
|
|
|
4.5
|
|
|
921,599
|
|
|
27.81
|
|
||
$30.00 to $39.99
|
|
62,379
|
|
|
30.48
|
|
|
|
5.5
|
|
|
10,000
|
|
|
32.45
|
|
||
$40.00 to $44.99
|
|
14,000
|
|
|
41.69
|
|
|
|
0.8
|
|
|
14,000
|
|
|
41.69
|
|
||
$45.00 to $49.99
|
|
1,231,263
|
|
|
47.28
|
|
|
|
0.5
|
|
|
1,231,263
|
|
|
47.28
|
|
||
$50.00 to $59.99
|
|
91,217
|
|
|
58.12
|
|
|
|
0.4
|
|
|
91,217
|
|
|
58.12
|
|
||
$60.00 to $79.99
|
|
41,105
|
|
|
70.97
|
|
|
|
0.5
|
|
|
41,105
|
|
|
70.97
|
|
||
$80.00 to $81.99
|
|
36,000
|
|
|
80.65
|
|
|
|
1.3
|
|
|
36,000
|
|
|
80.65
|
|
||
$82.00 to $83.38
|
|
36,000
|
|
|
83.38
|
|
|
|
2.3
|
|
|
36,000
|
|
|
83.38
|
|
||
|
|
5,630,502
|
|
|
31.60
|
|
|
|
3.1
|
1
|
|
3,804,873
|
|
|
33.86
|
|
1
|
The weighted average remaining contractual life excludes
21,252
stock options without a fixed expiration date that were obtained with the Amegy acquisition. They expire between the date of termination and one year from the date of termination, depending upon certain circumstances.
|
|
Number of shares
|
|
Weighted average issue price
|
|||
|
|
|
|
|||
Nonvested restricted shares at December 31, 2011
|
1,399,854
|
|
|
$
|
23.74
|
|
Issued
|
87,480
|
|
|
17.57
|
|
|
Vested
|
(582,361
|
)
|
|
25.34
|
|
|
Forfeited
|
(53,737
|
)
|
|
22.83
|
|
|
Nonvested restricted shares at December 31, 2012
|
851,236
|
|
|
22.07
|
|
|
Issued
|
56,774
|
|
|
24.55
|
|
|
Vested
|
(452,743
|
)
|
|
21.80
|
|
|
Forfeited
|
(44,317
|
)
|
|
24.31
|
|
|
Nonvested restricted shares at December 31, 2013
|
410,950
|
|
|
22.46
|
|
|
Issued
|
16,670
|
|
|
28.87
|
|
|
Vested
|
(256,890
|
)
|
|
23.23
|
|
|
Forfeited
|
(9,510
|
)
|
|
23.68
|
|
|
Nonvested restricted shares at December 31, 2014
|
161,220
|
|
|
21.82
|
|
|
Number of restricted stock units
|
|
Weighted average grant price
|
|||
|
|
|
|
|||
Restricted stock units at December 31, 2011
|
146,165
|
|
|
$
|
23.69
|
|
Granted
|
726,779
|
|
|
18.29
|
|
|
Vested
|
(34,885
|
)
|
|
22.46
|
|
|
Forfeited
|
(15,306
|
)
|
|
20.22
|
|
|
Restricted stock units at December 31, 2012
|
822,753
|
|
|
19.04
|
|
|
Granted
|
949,418
|
|
|
25.99
|
|
|
Vested
|
(160,580
|
)
|
|
20.17
|
|
|
Forfeited
|
(89,553
|
)
|
|
20.13
|
|
|
Restricted stock units at December 31, 2013
|
1,522,038
|
|
|
23.19
|
|
|
Granted
|
727,300
|
|
|
28.81
|
|
|
Vested
|
(416,755
|
)
|
|
22.26
|
|
|
Forfeited
|
(63,163
|
)
|
|
25.48
|
|
|
Restricted stock units at December 31, 2014
|
1,769,420
|
|
|
25.64
|
|
17.
|
COMMITMENTS, GUARANTEES, CONTINGENT LIABILITIES, AND RELATED PARTIES
|
|
December 31,
|
||||||
(In thousands)
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Net unfunded commitments to extend credit
1
|
$
|
16,658,757
|
|
|
$
|
16,174,083
|
|
Standby letters of credit:
|
|
|
|
||||
Financial
|
745,895
|
|
|
779,811
|
|
||
Performance
|
183,482
|
|
|
159,485
|
|
||
Commercial letters of credit
|
32,144
|
|
|
80,218
|
|
||
Total unfunded lending commitments
|
$
|
17,620,278
|
|
|
$
|
17,193,597
|
|
(in thousands)
|
|
|
||
2015
|
|
$
|
47,304
|
|
2016
|
|
46,690
|
|
|
2017
|
|
41,211
|
|
|
2018
|
|
36,519
|
|
|
2019
|
|
30,226
|
|
|
Thereafter
|
|
125,400
|
|
|
|
|
$
|
327,350
|
|
•
|
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 and other claims, 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 subsidiary banks and the anti-money laundering practices of that bank (conducted by the United States Attorney’s 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 and other customer types (conducted by the Department of Justice).
|
18.
|
REGULATORY MATTERS
|
|
Actual
|
|
To be well-capitalized
|
||||||||||
(Amounts in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
As of December 31, 2014
|
|
|
|
|
|
|
|
||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
||||||
The Company
|
$
|
7,443,301
|
|
|
16.27
|
%
|
|
$
|
4,573,768
|
|
|
10.00
|
%
|
Zions First National Bank
|
2,108,904
|
|
|
15.27
|
|
|
1,381,243
|
|
|
10.00
|
|
||
California Bank & Trust
|
1,286,095
|
|
|
14.18
|
|
|
906,915
|
|
|
10.00
|
|
||
Amegy Bank
|
1,741,586
|
|
|
14.09
|
|
|
1,236,244
|
|
|
10.00
|
|
||
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
||||||
The Company
|
6,620,282
|
|
|
14.47
|
|
|
2,744,261
|
|
|
6.00
|
|
||
Zions First National Bank
|
1,942,856
|
|
|
14.07
|
|
|
828,746
|
|
|
6.00
|
|
||
California Bank & Trust
|
1,179,129
|
|
|
13.00
|
|
|
544,149
|
|
|
6.00
|
|
||
Amegy Bank
|
1,586,686
|
|
|
12.83
|
|
|
741,747
|
|
|
6.00
|
|
||
Tier 1 capital (to average assets)
|
|
|
|
|
|
|
|
||||||
The Company
|
6,620,282
|
|
|
11.82
|
|
|
na
|
|
|
na
1
|
|
||
Zions First National Bank
|
1,942,856
|
|
|
10.52
|
|
|
923,193
|
|
|
5.00
|
|
||
California Bank & Trust
|
1,179,129
|
|
|
10.78
|
|
|
547,086
|
|
|
5.00
|
|
||
Amegy Bank
|
1,586,686
|
|
|
11.79
|
|
|
672,996
|
|
|
5.00
|
|
As of December 31, 2013
|
|
|
|
|
|
|
|
||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
||||||
The Company
|
$
|
6,621,539
|
|
|
14.67
|
%
|
|
$
|
4,514,553
|
|
|
10.00
|
%
|
Zions First National Bank
|
1,997,525
|
|
|
14.52
|
|
|
1,375,382
|
|
|
10.00
|
|
||
California Bank & Trust
|
1,252,860
|
|
|
13.65
|
|
|
917,950
|
|
|
10.00
|
|
||
Amegy Bank
|
1,714,314
|
|
|
14.86
|
|
|
1,153,382
|
|
|
10.00
|
|
||
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
||||||
The Company
|
5,763,463
|
|
|
12.77
|
|
|
2,708,732
|
|
|
6.00
|
|
||
Zions First National Bank
|
1,831,720
|
|
|
13.32
|
|
|
825,208
|
|
|
6.00
|
|
||
California Bank & Trust
|
1,137,848
|
|
|
12.40
|
|
|
550,770
|
|
|
6.00
|
|
||
Amegy Bank
|
1,569,696
|
|
|
13.61
|
|
|
692,029
|
|
|
6.00
|
|
||
Tier 1 capital (to average assets)
|
|
|
|
|
|
|
|
||||||
The Company
|
5,763,463
|
|
|
10.48
|
|
|
na
|
|
|
na
1
|
|
||
Zions First National Bank
|
1,831,720
|
|
|
10.02
|
|
|
913,592
|
|
|
5.00
|
|
||
California Bank & Trust
|
1,137,848
|
|
|
10.75
|
|
|
529,067
|
|
|
5.00
|
|
||
Amegy Bank
|
1,569,696
|
|
|
12.09
|
|
|
649,387
|
|
|
5.00
|
|
1
|
There is no Tier 1 leverage ratio component in the definition of a well-capitalized bank holding company
.
|
19.
|
RETIREMENT PLANS
|
(In thousands)
|
|
Pension
|
|
Supplemental
Retirement
|
|
Postretirement
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation at beginning of year
|
|
$
|
169,092
|
|
|
$
|
191,208
|
|
|
$
|
10,276
|
|
|
$
|
11,234
|
|
|
$
|
1,062
|
|
|
$
|
1,129
|
|
Service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
32
|
|
||||||
Interest cost
|
|
7,468
|
|
|
6,885
|
|
|
454
|
|
|
404
|
|
|
47
|
|
|
41
|
|
||||||
Actuarial (gain) loss
|
|
20,859
|
|
|
(16,341
|
)
|
|
738
|
|
|
(426
|
)
|
|
19
|
|
|
(53
|
)
|
||||||
Settlements
|
|
—
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
|
(11,475
|
)
|
|
(12,756
|
)
|
|
(873
|
)
|
|
(936
|
)
|
|
(92
|
)
|
|
(87
|
)
|
||||||
Benefit obligation at end of year
|
|
185,944
|
|
|
169,092
|
|
|
10,595
|
|
|
10,276
|
|
|
1,067
|
|
|
1,062
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets at beginning of year
|
|
171,905
|
|
|
157,082
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Actual return on plan assets
|
|
9,769
|
|
|
27,579
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Employer contributions
|
|
—
|
|
|
—
|
|
|
873
|
|
|
936
|
|
|
92
|
|
|
87
|
|
||||||
Benefits paid
|
|
(11,475
|
)
|
|
(12,756
|
)
|
|
(873
|
)
|
|
(936
|
)
|
|
(92
|
)
|
|
(87
|
)
|
||||||
Fair value of plan assets at end of year
|
|
170,199
|
|
|
171,905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Funded status
|
|
$
|
(15,745
|
)
|
|
$
|
2,813
|
|
|
$
|
(10,595
|
)
|
|
$
|
(10,276
|
)
|
|
$
|
(1,067
|
)
|
|
$
|
(1,062
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset (liability) for pension/postretirement benefits
|
|
$
|
(15,745
|
)
|
|
$
|
2,813
|
|
|
$
|
(10,595
|
)
|
|
$
|
(10,276
|
)
|
|
$
|
(1,067
|
)
|
|
$
|
(1,062
|
)
|
Accumulated other comprehensive income (loss)
|
|
(60,581
|
)
|
|
(39,082
|
)
|
|
(2,637
|
)
|
|
(1,968
|
)
|
|
264
|
|
|
354
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated other comprehensive income (loss) consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net gain (loss)
|
|
$
|
(60,581
|
)
|
|
$
|
(39,082
|
)
|
|
$
|
(2,637
|
)
|
|
$
|
(1,918
|
)
|
|
$
|
264
|
|
|
$
|
354
|
|
Prior service credit (cost)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
(60,581
|
)
|
|
$
|
(39,082
|
)
|
|
$
|
(2,637
|
)
|
|
$
|
(1,968
|
)
|
|
$
|
264
|
|
|
$
|
354
|
|
(In thousands)
|
|
Pension
|
|
Supplemental Retirement
|
|
Postretirement
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Net gain (loss)
|
|
$
|
(6,295
|
)
|
|
|
$
|
(123
|
)
|
|
|
|
$
|
53
|
|
|
|
|
Pension
|
|
Supplemental
Retirement
|
|
Postretirement
|
||||||||||||||||||||||||||||||
(In thousands)
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
32
|
|
|
$
|
36
|
|
Interest cost
|
|
7,468
|
|
|
6,885
|
|
|
7,558
|
|
|
454
|
|
|
404
|
|
|
460
|
|
|
47
|
|
|
41
|
|
|
47
|
|
|||||||||
Expected return on plan assets
|
|
(13,305
|
)
|
|
(12,109
|
)
|
|
(11,308
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Amortization of net actuarial (gain) loss
|
|
2,895
|
|
|
8,132
|
|
|
9,184
|
|
|
19
|
|
|
70
|
|
|
(114
|
)
|
|
(71
|
)
|
|
(75
|
)
|
|
(87
|
)
|
|||||||||
Amortization of prior service (credit) cost
|
|
|
|
|
|
|
|
50
|
|
|
124
|
|
|
124
|
|
|
—
|
|
|
(151
|
)
|
|
(244
|
)
|
||||||||||||
Settlement loss
|
|
—
|
|
|
1,814
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
||||||||||||
Net periodic benefit cost (credit)
|
|
$
|
(2,942
|
)
|
|
$
|
4,722
|
|
|
$
|
5,463
|
|
|
$
|
523
|
|
|
$
|
598
|
|
|
$
|
470
|
|
|
$
|
7
|
|
|
$
|
(153
|
)
|
|
$
|
(248
|
)
|
|
2014
|
|
2013
|
|
2012
|
|||
Used to determine benefit obligation at year-end:
|
|
|
|
|
|
|||
Discount rate
|
3.95
|
%
|
|
4.60
|
%
|
|
3.75
|
%
|
Rate of compensation increase
1
|
na
|
|
na
|
|
3.50
|
|
||
Used to determine net periodic benefit cost for the years ended December 31:
|
|
|
|
|
|
|||
Discount rate
|
4.60
|
|
|
3.75
|
|
|
4.25
|
|
Expected long-term return on plan assets
|
8.00
|
|
|
8.00
|
|
|
8.00
|
|
Rate of compensation increase
1
|
na
|
|
3.50
|
|
|
3.50
|
|
1
|
As previously discussed, the pension plan became fully frozen effective July 1, 2013 by a plan amendment that eliminated the remaining grandfather provisions. This action eliminated the need to continue using the rate of compensation increase assumption as of December 31, 2013.
|
(In thousands)
|
|
Pension
|
|
Supplemental Retirement
|
|
Postretirement
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
2015
|
|
$
|
9,960
|
|
|
|
$
|
1,763
|
|
|
|
|
$
|
95
|
|
|
2016
|
|
9,713
|
|
|
|
1,106
|
|
|
|
|
100
|
|
|
|||
2017
|
|
10,059
|
|
|
|
825
|
|
|
|
|
105
|
|
|
|||
2018
|
|
10,421
|
|
|
|
818
|
|
|
|
|
104
|
|
|
|||
2019
|
|
10,577
|
|
|
|
854
|
|
|
|
|
102
|
|
|
|||
Years 2019 - 2023
|
|
54,108
|
|
|
|
3,553
|
|
|
|
|
465
|
|
|
(Amounts in thousands)
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
%
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
%
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Company common stock
|
|
$
|
7,560
|
|
|
|
|
|
|
$
|
7,560
|
|
|
4
|
|
|
$
|
8,098
|
|
|
|
|
|
|
$
|
8,098
|
|
|
5
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity
|
|
—
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
—
|
|
||||||||||||
Debt
|
|
6,047
|
|
|
|
|
|
|
6,047
|
|
|
4
|
|
|
6,559
|
|
|
|
|
|
|
6,559
|
|
|
4
|
|
||||||||||||
Insurance company pooled separate accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity investments
|
|
|
|
$
|
97,094
|
|
|
|
|
97,094
|
|
|
57
|
|
|
|
|
$
|
102,603
|
|
|
|
|
102,603
|
|
|
60
|
|
||||||||||
Debt investments
|
|
|
|
33,167
|
|
|
|
|
33,167
|
|
|
19
|
|
|
|
|
29,091
|
|
|
|
|
29,091
|
|
|
17
|
|
||||||||||||
Real estate
|
|
|
|
8,611
|
|
|
|
|
8,611
|
|
|
5
|
|
|
|
|
7,680
|
|
|
|
|
7,680
|
|
|
4
|
|
||||||||||||
Guaranteed deposit account
|
|
|
|
|
|
$
|
11,515
|
|
|
11,515
|
|
|
7
|
|
|
|
|
|
|
$
|
12,582
|
|
|
12,582
|
|
|
7
|
|
||||||||||
Limited partnerships
|
|
|
|
|
|
6,205
|
|
|
6,205
|
|
|
4
|
|
|
|
|
|
|
5,292
|
|
|
5,292
|
|
|
3
|
|
||||||||||||
|
|
$
|
13,607
|
|
|
$
|
138,872
|
|
|
$
|
17,720
|
|
|
$
|
170,199
|
|
|
100
|
|
|
$
|
14,657
|
|
|
$
|
139,374
|
|
|
$
|
17,874
|
|
|
$
|
171,905
|
|
|
100
|
|
Principal valuation techniques
|
|
Significant unobservable inputs
|
|
Range (weighted average)
of significant input values
|
||
|
|
|
|
|
|
|
For the underlying investments – reported fair values when available for market traded investments; when not applicable, discounted cash flows under an income approach using U.S. Treasury rates and spreads based on cash flow timing and quality of assets.
|
|
Earnings at guaranteed crediting rate
|
|
Gross guaranteed crediting rate must be greater than or equal to contractual minimum crediting rate
|
||
|
Composite market value factor
|
|
At December 31,
|
|||
|
|
2014
|
|
1.018148 - 1.081039 (actual = 1.063133)
|
||
|
|
|
2013
|
|
0.988035 - 1.073235 (actual = 1.05329)
|
Investment
|
|
Unfunded commitments
(in thousands, approximately)
|
|
Redemption
|
||||||
|
|
Frequency
|
|
Notice period
|
||||||
|
|
|
|
|
|
|
|
|
||
Pooled separate accounts
|
|
|
na
|
|
|
Daily
|
|
< $1 million, 1 day
>= $1 million, 3 days
|
||
|
|
|
|
|
|
|
|
|||
Limited partnerships
|
|
|
$
|
2,200
|
|
|
|
Investments in these limited partnerships are illiquid and voluntary withdrawal is prohibited.
|
||
|
|
|
|
|
|
|
|
Level 3 Instruments
|
||||||||||||||||||||||
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||||
(In thousands)
|
|
Guaranteed deposit account
|
|
Limited partnerships
|
|
Guaranteed deposit account
|
|
Limited partnerships
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
|
|
$
|
12,582
|
|
|
|
|
$
|
5,292
|
|
|
|
|
$
|
13,869
|
|
|
|
|
$
|
4,689
|
|
|
Net increases (decreases) included in plan statement of change in net assets available for benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net operating fees and expenses
|
|
|
(267
|
)
|
|
|
|
(93
|
)
|
|
|
|
(346
|
)
|
|
|
|
(83
|
)
|
|
||||
Net appreciation (depreciation) in fair value of investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Realized
|
|
|
—
|
|
|
|
|
211
|
|
|
|
|
—
|
|
|
|
|
(74
|
)
|
|
||||
Unrealized
|
|
|
375
|
|
|
|
|
925
|
|
|
|
|
(398
|
)
|
|
|
|
732
|
|
|
||||
Interest and dividends
|
|
|
359
|
|
|
|
|
—
|
|
|
|
|
486
|
|
|
|
|
—
|
|
|
||||
Purchases
|
|
|
9,995
|
|
|
|
|
1,014
|
|
|
|
|
11,722
|
|
|
|
|
760
|
|
|
||||
Sales
|
|
|
(11,529
|
)
|
|
|
|
—
|
|
|
|
|
(12,751
|
)
|
|
|
|
—
|
|
|
||||
Settlements
|
|
|
—
|
|
|
|
|
(1,144
|
)
|
|
|
|
—
|
|
|
|
|
(732
|
)
|
|
||||
Balance at end of year
|
|
|
$
|
11,515
|
|
|
|
|
$
|
6,205
|
|
|
|
|
$
|
12,582
|
|
|
|
|
$
|
5,292
|
|
|
20.
|
FAIR VALUE
|
(In thousands)
|
December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
|
|
|
$
|
3,098,208
|
|
|
|
|
$
|
3,098,208
|
|
|||
Municipal securities
|
|
|
185,093
|
|
|
$
|
4,164
|
|
|
189,257
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Trust preferred – banks and insurance
|
|
|
22,701
|
|
|
393,007
|
|
|
415,708
|
|
|||||
Auction rate
|
|
|
|
|
4,761
|
|
|
4,761
|
|
||||||
Other
|
|
|
666
|
|
|
25
|
|
|
691
|
|
|||||
Mutual funds and other
|
$
|
105,348
|
|
|
30,275
|
|
|
|
|
135,623
|
|
||||
|
105,348
|
|
|
3,336,943
|
|
|
401,957
|
|
|
3,844,248
|
|
||||
Trading account
|
|
|
70,601
|
|
|
|
|
70,601
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
476,290
|
|
|
|
|
476,290
|
|
||||||
Private equity
|
|
|
|
|
|
99,865
|
|
|
99,865
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Agriculture loan servicing and interest-only strips
|
|
|
|
|
12,227
|
|
|
12,227
|
|
||||||
Deferred compensation plan assets
|
88,878
|
|
|
|
|
|
|
88,878
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
1,508
|
|
|
|
|
1,508
|
|
||||||
Interest rate swaps for customers
|
|
|
48,287
|
|
|
|
|
48,287
|
|
||||||
Foreign currency exchange contracts
|
16,625
|
|
|
|
|
|
|
16,625
|
|
||||||
|
16,625
|
|
|
49,795
|
|
|
|
|
66,420
|
|
|||||
|
$
|
210,851
|
|
|
$
|
3,933,629
|
|
|
$
|
514,049
|
|
|
$
|
4,658,529
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
24,230
|
|
|
|
|
|
|
|
$
|
24,230
|
|
|||
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan obligations
|
88,878
|
|
|
|
|
|
|
88,878
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
$
|
297
|
|
|
|
|
297
|
|
|||||
Interest rate swaps for customers
|
|
|
50,669
|
|
|
|
|
50,669
|
|
||||||
Foreign currency exchange contracts
|
15,272
|
|
|
|
|
|
|
15,272
|
|
||||||
|
15,272
|
|
|
50,966
|
|
|
—
|
|
|
66,238
|
|
||||
Other
|
|
|
|
|
$
|
13
|
|
|
13
|
|
|||||
|
$
|
128,380
|
|
|
$
|
50,966
|
|
|
$
|
13
|
|
|
$
|
179,359
|
|
(In thousands)
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
|
|
|
$
|
2,059,105
|
|
|
|
|
$
|
2,059,105
|
|
|||
Municipal securities
|
|
|
55,602
|
|
|
$
|
10,662
|
|
|
66,264
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Trust preferred – banks and insurance
|
|
|
|
|
|
1,238,820
|
|
|
1,238,820
|
|
|||||
Trust preferred – real estate investment trusts
|
|
|
|
|
22,996
|
|
|
22,996
|
|
||||||
Auction rate
|
|
|
|
|
6,599
|
|
|
6,599
|
|
||||||
Other
|
|
|
2,099
|
|
|
25,800
|
|
|
27,899
|
|
|||||
Mutual funds and other
|
$
|
259,750
|
|
|
20,453
|
|
|
|
|
280,203
|
|
||||
|
259,750
|
|
|
2,137,259
|
|
|
1,304,877
|
|
|
3,701,886
|
|
||||
Trading account
|
|
|
34,559
|
|
|
|
|
34,559
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
466,428
|
|
|
|
|
466,428
|
|
||||||
Private equity
|
|
|
4,822
|
|
|
82,410
|
|
|
87,232
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|||||||
Agriculture loan servicing and interest-only strips
|
|
|
|
|
8,852
|
|
|
8,852
|
|
||||||
Deferred compensation plan assets
|
86,184
|
|
|
|
|
|
|
86,184
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
1,100
|
|
|
|
|
1,100
|
|
||||||
Interest rate swaps for customers
|
|
|
55,447
|
|
|
|
|
55,447
|
|
||||||
Foreign currency exchange contracts
|
9,614
|
|
|
|
|
|
|
9,614
|
|
||||||
|
9,614
|
|
|
56,547
|
|
|
|
|
66,161
|
|
|||||
|
$
|
355,548
|
|
|
$
|
2,699,615
|
|
|
$
|
1,396,139
|
|
|
$
|
4,451,302
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
73,606
|
|
|
|
|
|
|
|
$
|
73,606
|
|
|||
Other liabilities:
|
|
|
|
|
|
|
|
|
|||||||
Deferred compensation plan obligations
|
86,184
|
|
|
|
|
|
|
86,184
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate related and other
|
|
|
$
|
1,004
|
|
|
|
|
1,004
|
|
|||||
Interest rate swaps for customers
|
|
|
54,688
|
|
|
|
|
54,688
|
|
||||||
Foreign currency exchange contracts
|
8,643
|
|
|
|
|
|
|
8,643
|
|
||||||
Total return swap
|
|
|
|
|
$
|
4,062
|
|
|
4,062
|
|
|||||
|
8,643
|
|
|
55,692
|
|
|
4,062
|
|
|
68,397
|
|
||||
Other
|
|
|
|
|
241
|
|
|
241
|
|
||||||
|
$
|
168,433
|
|
|
$
|
55,692
|
|
|
$
|
4,303
|
|
|
$
|
228,428
|
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||||||
(In thousands)
|
Municipal
securities |
|
Trust
preferred – banks and insurance |
|
Trust
preferred – REIT |
|
Auction
rate |
|
Other
asset-backed |
|
Private
equity investments |
|
Ag loan svcg and int-only strips
|
|
Derivatives
and other liabilities |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2013
|
$
|
10,662
|
|
|
$
|
1,238,820
|
|
|
$
|
22,996
|
|
|
$
|
6,599
|
|
|
$
|
25,800
|
|
|
$
|
82,410
|
|
|
$
|
8,852
|
|
|
$
|
(4,303
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
32
|
|
|
2,151
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
6,192
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,894
|
)
|
|||||||||||||||
Equity securities gains, net
|
|
|
|
|
|
|
|
|
|
|
5,869
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains (losses), net
|
126
|
|
|
(3,097
|
)
|
|
1,399
|
|
|
50
|
|
|
10,917
|
|
|
|
|
|
|
|
|||||||||||
Other noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
857
|
|
|
|
|||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
228
|
|
|||||||||||||||
Other comprehensive
income (loss)
|
(376
|
)
|
|
146,303
|
|
|
|
|
|
(19
|
)
|
|
(15
|
)
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
21,768
|
|
|
3,351
|
|
|
|
||||||||||||||
Sales
|
(5,679
|
)
|
|
(818,647
|
)
|
|
(24,395
|
)
|
|
(922
|
)
|
|
(36,670
|
)
|
|
(10,448
|
)
|
|
|
|
|
||||||||||
Redemptions and paydowns
|
(601
|
)
|
|
(103,330
|
)
|
|
|
|
(950
|
)
|
|
(7
|
)
|
|
(5,926
|
)
|
|
(833
|
)
|
|
11,956
|
|
|||||||||
Transfers to Level 2
|
|
|
(69,193
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2014
|
$
|
4,164
|
|
|
$
|
393,007
|
|
|
$
|
—
|
|
|
$
|
4,761
|
|
|
$
|
25
|
|
|
$
|
99,865
|
|
|
$
|
12,227
|
|
|
$
|
(13
|
)
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Year Ended December 31, 2013
|
||||||||||||||||||||||||||||||
(In thousands)
|
Municipal
securities |
|
Trust
preferred – banks and insurance |
|
Trust
preferred – REIT |
|
Auction
rate |
|
Other
asset-backed |
|
Private
equity investments |
|
Ag loan svcg and int-only strips
|
|
Derivatives
and other liabilities |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2012
|
$
|
16,551
|
|
|
$
|
949,271
|
|
|
$
|
16,403
|
|
|
$
|
6,515
|
|
|
$
|
15,160
|
|
|
$
|
64,223
|
|
|
$
|
8,334
|
|
|
$
|
(5,251
|
)
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Accretion of purchase discount on securities available-for-sale
|
41
|
|
|
3,166
|
|
|
254
|
|
|
3
|
|
|
82
|
|
|
|
|
|
|
|
|||||||||||
Dividends and other investment income
|
|
|
|
|
|
|
|
|
|
|
6,662
|
|
|
|
|
|
|||||||||||||||
Fair value and nonhedge derivative loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,753
|
)
|
|||||||||||||||
Equity securities gains, net
|
|
|
|
|
|
|
|
|
|
|
3,732
|
|
|
|
|
|
|||||||||||||||
Fixed income securities gains (losses), net
|
239
|
|
|
(3,160
|
)
|
|
(201
|
)
|
|
|
|
|
55
|
|
|
|
|
|
|
|
|||||||||||
Net impairment losses on investment securities
|
|
|
(136,221
|
)
|
|
(17,430
|
)
|
|
|
|
(11,080
|
)
|
|
|
|
|
|
|
|||||||||||||
Other noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
1,587
|
|
|
|
|||||||||||||||
Other noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(117
|
)
|
|||||||||||||||
Other comprehensive
income (loss)
|
1,540
|
|
|
377,357
|
|
|
24,081
|
|
|
81
|
|
|
6,950
|
|
|
|
|
|
|
|
|||||||||||
Purchases
|
|
|
|
|
|
|
|
|
|
|
10,548
|
|
|
|
|
|
|||||||||||||||
Sales
|
|
|
(66,303
|
)
|
|
(111
|
)
|
|
|
|
(1
|
)
|
|
(2,244
|
)
|
|
|
|
|
||||||||||||
Redemptions and paydowns
|
(7,709
|
)
|
|
(60,989
|
)
|
|
|
|
|
|
|
(5,780
|
)
|
|
(511
|
)
|
|
(1,069
|
)
|
|
22,818
|
|
|||||||||
Reclassifications
|
|
|
175,699
|
|
|
|
|
|
|
20,414
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2013
|
$
|
10,662
|
|
|
$
|
1,238,820
|
|
|
$
|
22,996
|
|
|
$
|
6,599
|
|
|
$
|
25,800
|
|
|
$
|
82,410
|
|
|
$
|
8,852
|
|
|
$
|
(4,303
|
)
|
(In thousands)
|
Year Ended
December 31,
|
||||||
2014
|
|
2013
|
|||||
|
|
|
|
||||
Dividends and other investment income (loss)
|
$
|
518
|
|
|
$
|
(133
|
)
|
Equity securities losses, net
|
—
|
|
|
(2,452
|
)
|
||
Fixed income securities gains (losses), net
|
9,395
|
|
|
(3,067
|
)
|
|
Level 3 Instruments
|
||||||||
|
Quantitative information at December 31, 2014
|
||||||||
(Dollar amounts in thousands)
|
Fair value
|
|
Principal valuation techniques
|
|
Significant unobservable inputs
|
|
Range of inputs
(% annually)
|
||
Asset-backed securities:
|
|
|
|
|
|
|
|
||
Trust preferred – predominantly banks
|
$
|
393,007
|
|
|
Discounted cash flow
Market comparables |
|
Constant prepayment rate
|
|
until maturity – 2.0%
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Constant default rate
|
|
yr 1 – 0.3% to 0.8%
|
||
|
|
|
|
|
|
|
yrs 2-5 – 0.5% to 0.9%
|
||
|
|
|
|
|
|
|
yrs 6 to maturity – 0.6% to 0.7%
|
||
|
|
|
|
|
Loss given default
|
|
100%
|
||
|
|
|
|
|
Loss given deferral
|
|
14.5% to 100%
|
||
|
|
|
|
|
Discount rate
(spread over forward LIBOR) |
|
3.4% to 5.6%
|
|
Level 3 Instruments
|
||||||||
|
Quantitative information at December 31, 2013
|
||||||||
(Dollar amounts in thousands)
|
Fair value
|
|
Principal valuation techniques
|
|
Significant unobservable inputs
|
|
Range of inputs
(% annually)
|
||
Asset-backed securities:
|
|
|
|
|
|
|
|
||
Trust preferred – predominantly banks
|
$
|
870,106
|
|
|
Discounted cash flow
Market comparables |
|
Constant prepayment rate
|
|
until 2016 – 5.50% to 20.73%
|
|
|
|
|
|
|
|
2016 to maturity – 3.0%
|
||
|
|
|
|
|
Constant default rate
|
|
yr 1 – 0.30% to 1.94%
|
||
|
|
|
|
|
|
|
yrs 2-5 – 0.49% to 1.14%
|
||
|
|
|
|
|
|
|
yrs 6 to maturity – 0.58% to 0.65%
|
||
|
|
|
|
|
Loss given default
|
|
100%
|
||
|
|
|
|
|
Loss given deferral
|
|
14.39% to 100%
|
||
|
|
|
|
|
Discount rate
(spread over forward LIBOR) |
|
5.6% to 7.7%
|
||
|
|
|
|
|
|
|
|
||
Trust preferred – predominantly insurance
|
346,390
|
|
|
Discounted cash flow
Market comparables |
|
Constant prepayment rate
|
|
until maturity – 5.0%
|
|
|
|
|
|
|
Constant default rate
|
|
yr 1 – 0.38% to 1.03%
|
||
|
|
|
|
|
|
|
yrs 2-5 – 0.53% to 0.89%
|
||
|
|
|
|
|
|
|
yrs 6 to maturity – 0.50% to 0.55%
|
||
|
|
|
|
|
Loss given default
|
|
100%
|
||
|
|
|
|
|
Loss given deferral
|
|
2.18% to 30.13%
|
||
|
|
|
|
|
Discount rate
(spread over forward LIBOR) |
|
3.72% to 6.49%
|
||
|
|
|
|
|
|
|
|
||
Trust preferred – individual banks
|
22,324
|
|
|
Market comparables
|
|
Yield
|
|
6.6% to 7.8%
|
|
|
|
|
|
|
Price
|
|
81.25% to 109.6%
|
||
Subtotal trust preferred – banks and insurance
|
1,238,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Trust preferred – real estate investment trust
|
22,996
|
|
|
Discounted cash flow
Market comparables |
|
Constant prepayment rate
|
|
until maturity – 0.0%
|
|
|
|
|
|
|
Constant default rate
|
|
yr 1 – 4.1% to 10.6%
|
||
|
|
|
|
|
|
|
yrs 2-3 – 4.6% to 5.5%
|
||
|
|
|
|
|
|
|
yrs 4-6 – 1.0%
|
||
|
|
|
|
|
|
|
yrs 7 to maturity – 0.50%
|
||
|
|
|
|
|
Loss given default
|
|
60% to 100%
|
||
|
|
|
|
|
Discount rate
(spread over forward LIBOR) |
|
5.5% to 15%
|
||
|
|
|
|
|
|
|
|
||
Other (predominantly ABS CDOs)
|
25,800
|
|
|
Discounted cash flow
|
|
Constant default rate
|
|
0.01% to 100%
|
|
|
|
|
|
|
Loss given default
|
|
70% to 92%
|
||
|
|
|
|
|
Discount rate
(spread over forward LIBOR) |
|
9% to 22%
|
(In thousands)
|
Fair value at December 31, 2014
|
|
Gains (losses) from
fair value changes
Year Ended
December 31, 2014
|
||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HTM securities adjusted for OTTI
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Private equity investments, carried at cost
|
—
|
|
|
—
|
|
|
23,454
|
|
|
23,454
|
|
|
|
(2,527
|
)
|
|
|||||
Impaired loans
|
—
|
|
|
18,854
|
|
|
—
|
|
|
18,854
|
|
|
|
(2,304
|
)
|
|
|||||
Other real estate owned
|
—
|
|
|
8,034
|
|
|
—
|
|
|
8,034
|
|
|
|
(6,784
|
)
|
|
|||||
|
$
|
—
|
|
|
$
|
26,888
|
|
|
$
|
23,454
|
|
|
$
|
50,342
|
|
|
|
$
|
(11,615
|
)
|
|
(In thousands)
|
Fair value at December 31, 2013
|
|
Gains (losses) from
fair value changes Year Ended December 31, 2013
|
||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HTM securities adjusted for OTTI
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,483
|
|
|
$
|
8,483
|
|
|
|
$
|
(403
|
)
|
|
Private equity investments, carried at cost
|
—
|
|
|
—
|
|
|
13,270
|
|
|
13,270
|
|
|
|
(5,700
|
)
|
|
|||||
Impaired loans
|
—
|
|
|
11,765
|
|
|
—
|
|
|
11,765
|
|
|
|
(1,575
|
)
|
|
|||||
Other real estate owned
|
—
|
|
|
24,684
|
|
|
—
|
|
|
24,684
|
|
|
|
(13,158
|
)
|
|
|||||
|
$
|
—
|
|
|
$
|
36,449
|
|
|
$
|
21,753
|
|
|
$
|
58,202
|
|
|
|
$
|
(20,836
|
)
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||
(Amounts in thousands)
|
Carrying
value
|
|
Estimated
fair value
|
|
Level
|
|
Carrying
value
|
|
Estimated
fair value
|
|
Level
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
HTM investment securities
|
$
|
647,252
|
|
|
$
|
677,196
|
|
|
3
|
|
$
|
588,981
|
|
|
$
|
609,547
|
|
|
3
|
Loans and leases (including loans held for sale), net of allowance
|
39,591,857
|
|
|
39,426,498
|
|
|
3
|
|
38,468,402
|
|
|
38,088,242
|
|
|
3
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
2,406,924
|
|
|
2,408,550
|
|
|
2
|
|
2,593,038
|
|
|
2,602,955
|
|
|
2
|
||||
Foreign deposits
|
328,391
|
|
|
328,447
|
|
|
2
|
|
1,980,161
|
|
|
1,979,805
|
|
|
2
|
||||
Long-term debt (less fair value hedges)
|
1,090,778
|
|
|
1,159,287
|
|
|
2
|
|
2,269,762
|
|
|
2,423,643
|
|
|
2
|
21.
|
OPERATING SEGMENT INFORMATION
|
(In millions)
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
||||||||||||||||||||||||||||||
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||
CONDENSED INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
$
|
581.4
|
|
|
$
|
595.0
|
|
|
$
|
657.1
|
|
|
$
|
382.2
|
|
|
$
|
381.5
|
|
|
$
|
371.5
|
|
|
$
|
412.5
|
|
|
$
|
469.0
|
|
|
$
|
466.7
|
|
Provision for loan losses
|
(58.5
|
)
|
|
(40.5
|
)
|
|
88.3
|
|
|
32.2
|
|
|
4.2
|
|
|
(63.9
|
)
|
|
(20.1
|
)
|
|
(16.7
|
)
|
|
(7.9
|
)
|
|||||||||
Net interest income after provision for loan losses
|
639.9
|
|
|
635.5
|
|
|
568.8
|
|
|
350.0
|
|
|
377.3
|
|
|
435.4
|
|
|
432.6
|
|
|
485.7
|
|
|
474.6
|
|
|||||||||
Net impairment losses on investment securities
|
—
|
|
|
(7.7
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Loss on sale of investment securities to Parent
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.2
|
)
|
|||||||||
Other noninterest income
|
206.4
|
|
|
199.9
|
|
|
221.4
|
|
|
145.7
|
|
|
146.4
|
|
|
156.1
|
|
|
53.9
|
|
|
79.3
|
|
|
75.3
|
|
|||||||||
Noninterest expense
|
494.3
|
|
|
481.4
|
|
|
493.1
|
|
|
357.3
|
|
|
333.4
|
|
|
340.2
|
|
|
321.3
|
|
|
352.4
|
|
|
330.2
|
|
|||||||||
Income (loss) before income taxes and minority interest
|
352.0
|
|
|
346.3
|
|
|
293.9
|
|
|
138.4
|
|
|
190.3
|
|
|
251.3
|
|
|
165.2
|
|
|
212.6
|
|
|
210.5
|
|
|||||||||
Income tax expense (benefit)
|
130.4
|
|
|
121.7
|
|
|
104.6
|
|
|
44.5
|
|
|
59.8
|
|
|
84.6
|
|
|
63.9
|
|
|
72.5
|
|
|
83.4
|
|
|||||||||
Income (loss)
|
221.6
|
|
|
224.6
|
|
|
189.3
|
|
|
93.9
|
|
|
130.5
|
|
|
166.7
|
|
|
101.3
|
|
|
140.1
|
|
|
127.1
|
|
|||||||||
Net income (loss) applicable to noncontrolling interests
|
1.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net income (loss) applicable to controlling interest
|
$
|
220.4
|
|
|
$
|
224.6
|
|
|
$
|
189.3
|
|
|
$
|
93.9
|
|
|
$
|
130.5
|
|
|
$
|
166.7
|
|
|
$
|
101.3
|
|
|
$
|
140.1
|
|
|
$
|
127.1
|
|
YEAR-END BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total assets
|
$
|
19,079
|
|
|
$
|
18,590
|
|
|
$
|
17,930
|
|
|
$
|
13,929
|
|
|
$
|
13,705
|
|
|
$
|
13,119
|
|
|
$
|
11,340
|
|
|
$
|
10,923
|
|
|
$
|
11,069
|
|
Cash and due from banks
|
388
|
|
|
363
|
|
|
650
|
|
|
219
|
|
|
437
|
|
|
754
|
|
|
85
|
|
|
157
|
|
|
205
|
|
|||||||||
Money market investments
|
3,381
|
|
|
3,888
|
|
|
2,855
|
|
|
2,199
|
|
|
2,551
|
|
|
2,308
|
|
|
1,670
|
|
|
1,108
|
|
|
1,449
|
|
|||||||||
Total securities
|
2,331
|
|
|
1,520
|
|
|
1,273
|
|
|
277
|
|
|
362
|
|
|
439
|
|
|
296
|
|
|
331
|
|
|
350
|
|
|||||||||
Total loans
|
12,251
|
|
|
12,259
|
|
|
12,490
|
|
|
10,077
|
|
|
9,217
|
|
|
8,450
|
|
|
8,530
|
|
|
8,574
|
|
|
8,259
|
|
|||||||||
Total deposits
|
16,633
|
|
|
16,257
|
|
|
15,575
|
|
|
11,447
|
|
|
11,198
|
|
|
10,706
|
|
|
9,707
|
|
|
9,327
|
|
|
9,483
|
|
|||||||||
Shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Preferred equity
|
280
|
|
|
280
|
|
|
280
|
|
|
226
|
|
|
226
|
|
|
251
|
|
|
162
|
|
|
162
|
|
|
162
|
|
|||||||||
Common equity
|
1,615
|
|
|
1,523
|
|
|
1,519
|
|
|
1,930
|
|
|
1,845
|
|
|
1,725
|
|
|
1,390
|
|
|
1,342
|
|
|
1,322
|
|
|||||||||
Noncontrolling interests
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total shareholder’s equity
|
1,906
|
|
|
1,803
|
|
|
1,799
|
|
|
2,156
|
|
|
2,071
|
|
|
1,976
|
|
|
1,552
|
|
|
1,504
|
|
|
1,484
|
|
(In millions)
|
NBAZ
|
|
NSB
|
|
Vectra
|
||||||||||||||||||||||||||||||
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||
CONDENSED INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
$
|
162.0
|
|
|
$
|
163.0
|
|
|
$
|
167.7
|
|
|
$
|
112.9
|
|
|
$
|
113.6
|
|
|
$
|
123.4
|
|
|
$
|
102.1
|
|
|
$
|
102.7
|
|
|
$
|
108.7
|
|
Provision for loan losses
|
(21.5
|
)
|
|
(15.0
|
)
|
|
(0.6
|
)
|
|
(20.9
|
)
|
|
(12.0
|
)
|
|
(9.6
|
)
|
|
(8.4
|
)
|
|
(4.9
|
)
|
|
7.0
|
|
|||||||||
Net interest income after provision for loan losses
|
183.5
|
|
|
178.0
|
|
|
168.3
|
|
|
133.8
|
|
|
125.6
|
|
|
133.0
|
|
|
110.5
|
|
|
107.6
|
|
|
101.7
|
|
|||||||||
Net impairment losses on investment securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|||||||||
Loss on sale of investment securities to Parent
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other noninterest income
|
36.0
|
|
|
35.0
|
|
|
32.1
|
|
|
32.2
|
|
|
37.8
|
|
|
33.7
|
|
|
19.9
|
|
|
24.6
|
|
|
25.3
|
|
|||||||||
Noninterest expense
|
145.1
|
|
|
142.7
|
|
|
152.5
|
|
|
132.8
|
|
|
131.8
|
|
|
133.6
|
|
|
98.3
|
|
|
99.5
|
|
|
98.3
|
|
|||||||||
Income (loss) before income taxes and minority interest
|
74.4
|
|
|
70.3
|
|
|
47.9
|
|
|
33.2
|
|
|
28.3
|
|
|
33.1
|
|
|
32.1
|
|
|
32.6
|
|
|
28.1
|
|
|||||||||
Income tax expense (benefit)
|
27.9
|
|
|
26.4
|
|
|
17.0
|
|
|
10.9
|
|
|
9.5
|
|
|
11.3
|
|
|
10.7
|
|
|
11.2
|
|
|
9.2
|
|
|||||||||
Income (loss)
|
$
|
46.5
|
|
|
$
|
43.9
|
|
|
$
|
30.9
|
|
|
$
|
22.3
|
|
|
$
|
18.8
|
|
|
$
|
21.8
|
|
|
$
|
21.4
|
|
|
$
|
21.4
|
|
|
$
|
18.9
|
|
Net income (loss) applicable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net income (loss) applicable to controlling interest
|
$
|
46.5
|
|
|
$
|
43.9
|
|
|
$
|
30.9
|
|
|
$
|
22.3
|
|
|
$
|
18.8
|
|
|
$
|
21.8
|
|
|
$
|
21.4
|
|
|
$
|
21.4
|
|
|
$
|
18.9
|
|
YEAR-END BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total assets
|
$
|
4,771
|
|
|
$
|
4,579
|
|
|
$
|
4,575
|
|
|
$
|
4,096
|
|
|
$
|
3,980
|
|
|
$
|
4,061
|
|
|
$
|
2,999
|
|
|
$
|
2,571
|
|
|
$
|
2,511
|
|
Cash and due from banks
|
51
|
|
|
77
|
|
|
86
|
|
|
51
|
|
|
79
|
|
|
59
|
|
|
29
|
|
|
51
|
|
|
58
|
|
|||||||||
Money market investments
|
370
|
|
|
220
|
|
|
385
|
|
|
655
|
|
|
710
|
|
|
1,031
|
|
|
407
|
|
|
6
|
|
|
31
|
|
|||||||||
Total securities
|
395
|
|
|
362
|
|
|
263
|
|
|
831
|
|
|
774
|
|
|
742
|
|
|
179
|
|
|
166
|
|
|
187
|
|
|||||||||
Total loans
|
3,750
|
|
|
3,724
|
|
|
3,604
|
|
|
2,421
|
|
|
2,297
|
|
|
2,100
|
|
|
2,320
|
|
|
2,278
|
|
|
2,128
|
|
|||||||||
Total deposits
|
4,133
|
|
|
3,931
|
|
|
3,874
|
|
|
3,690
|
|
|
3,590
|
|
|
3,604
|
|
|
2,591
|
|
|
2,178
|
|
|
2,164
|
|
|||||||||
Shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Preferred equity
|
85
|
|
|
120
|
|
|
180
|
|
|
50
|
|
|
50
|
|
|
140
|
|
|
25
|
|
|
70
|
|
|
70
|
|
|||||||||
Common equity
|
481
|
|
|
418
|
|
|
399
|
|
|
332
|
|
|
317
|
|
|
298
|
|
|
315
|
|
|
246
|
|
|
224
|
|
|||||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total shareholder’s equity
|
566
|
|
|
538
|
|
|
579
|
|
|
382
|
|
|
367
|
|
|
438
|
|
|
340
|
|
|
316
|
|
|
294
|
|
(In millions)
|
TCBW
|
|
Other
|
|
Consolidated Company
|
||||||||||||||||||||||||||||||
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||
CONDENSED INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
$
|
28.8
|
|
|
$
|
27.3
|
|
|
$
|
27.4
|
|
|
$
|
(101.9
|
)
|
|
$
|
(155.8
|
)
|
|
$
|
(190.6
|
)
|
|
$
|
1,680.0
|
|
|
$
|
1,696.3
|
|
|
$
|
1,731.9
|
|
Provision for loan losses
|
(0.6
|
)
|
|
(1.8
|
)
|
|
0.4
|
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
0.5
|
|
|
(98.1
|
)
|
|
(87.1
|
)
|
|
14.2
|
|
|||||||||
Net interest income after provision for
loan losses
|
29.4
|
|
|
29.1
|
|
|
27.0
|
|
|
(101.6
|
)
|
|
(155.4
|
)
|
|
(191.1
|
)
|
|
1,778.1
|
|
|
1,783.4
|
|
|
1,717.7
|
|
|||||||||
Net impairment losses on investment securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154.0
|
)
|
|
(100.3
|
)
|
|
—
|
|
|
(165.1
|
)
|
|
(104.1
|
)
|
|||||||||
Loss on sale of investment securities to Parent
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
9.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other noninterest income
|
2.0
|
|
|
4.1
|
|
|
3.8
|
|
|
12.5
|
|
|
(24.6
|
)
|
|
(23.7
|
)
|
|
508.6
|
|
|
502.5
|
|
|
524.0
|
|
|||||||||
Noninterest expense
|
29.7
|
|
|
18.8
|
|
|
18.9
|
|
|
86.5
|
|
|
154.4
|
|
|
29.2
|
|
|
1,665.3
|
|
|
1,714.4
|
|
|
1,596.0
|
|
|||||||||
Income (loss) before income taxes and minority interest
|
1.7
|
|
|
11.7
|
|
|
11.9
|
|
|
(175.6
|
)
|
|
(485.7
|
)
|
|
(335.1
|
)
|
|
621.4
|
|
|
406.4
|
|
|
541.6
|
|
|||||||||
Income tax expense (benefit)
|
0.5
|
|
|
4.0
|
|
|
4.0
|
|
|
(65.9
|
)
|
|
(162.2
|
)
|
|
(120.7
|
)
|
|
222.9
|
|
|
142.9
|
|
|
193.4
|
|
|||||||||
Income (loss)
|
1.2
|
|
|
7.7
|
|
|
7.9
|
|
|
(109.7
|
)
|
|
(323.5
|
)
|
|
(214.4
|
)
|
|
398.5
|
|
|
263.5
|
|
|
348.2
|
|
|||||||||
Net income (loss) applicable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
|
(0.3
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
(1.3
|
)
|
|||||||||
Net income (loss) applicable to controlling interest
|
$
|
1.2
|
|
|
$
|
7.7
|
|
|
$
|
7.9
|
|
|
$
|
(108.5
|
)
|
|
$
|
(323.2
|
)
|
|
$
|
(213.1
|
)
|
|
$
|
398.5
|
|
|
$
|
263.8
|
|
|
$
|
349.5
|
|
YEAR-END BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total assets
|
$
|
892
|
|
|
$
|
943
|
|
|
$
|
961
|
|
|
$
|
103
|
|
|
$
|
740
|
|
|
$
|
1,286
|
|
|
$
|
57,209
|
|
|
$
|
56,031
|
|
|
$
|
55,512
|
|
Cash and due from banks
|
29
|
|
|
28
|
|
|
22
|
|
|
(6
|
)
|
|
(17
|
)
|
|
8
|
|
|
846
|
|
|
1,175
|
|
|
1,842
|
|
|||||||||
Money market investments
|
113
|
|
|
181
|
|
|
251
|
|
|
(235
|
)
|
|
(207
|
)
|
|
444
|
|
|
8,560
|
|
|
8,457
|
|
|
8,754
|
|
|||||||||
Total securities
|
72
|
|
|
91
|
|
|
104
|
|
|
181
|
|
|
719
|
|
|
519
|
|
|
4,562
|
|
|
4,325
|
|
|
3,877
|
|
|||||||||
Total loans
|
661
|
|
|
630
|
|
|
571
|
|
|
54
|
|
|
64
|
|
|
63
|
|
|
40,064
|
|
|
39,043
|
|
|
37,665
|
|
|||||||||
Total deposits
|
752
|
|
|
793
|
|
|
791
|
|
|
(1,106
|
)
|
|
(912
|
)
|
|
(64
|
)
|
|
47,847
|
|
|
46,362
|
|
|
46,133
|
|
|||||||||
Shareholder’s equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Preferred equity
|
3
|
|
|
3
|
|
|
3
|
|
|
173
|
|
|
93
|
|
|
42
|
|
|
1,004
|
|
|
1,004
|
|
|
1,128
|
|
|||||||||
Common equity
|
89
|
|
|
87
|
|
|
82
|
|
|
214
|
|
|
(317
|
)
|
|
(645
|
)
|
|
6,366
|
|
|
5,461
|
|
|
4,924
|
|
|||||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||||||
Total shareholder’s equity
|
92
|
|
|
90
|
|
|
85
|
|
|
376
|
|
|
(224
|
)
|
|
(606
|
)
|
|
7,370
|
|
|
6,465
|
|
|
6,049
|
|
22.
|
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
|
|
|
Quarters
|
|
|
||||||||||||||||
(In thousands, except per share amounts)
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Year
|
||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross interest income
|
|
$
|
467,568
|
|
|
$
|
463,191
|
|
|
$
|
460,275
|
|
|
$
|
461,959
|
|
|
$
|
1,852,993
|
|
Net interest income
|
|
416,465
|
|
|
416,283
|
|
|
416,818
|
|
|
430,429
|
|
|
1,679,995
|
|
|||||
Provision for loan losses
|
|
(610
|
)
|
|
(54,416
|
)
|
|
(54,643
|
)
|
|
11,587
|
|
|
(98,082
|
)
|
|||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net impairment losses on investment securities
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|||||
Investment securities gains (losses), net
|
|
31,826
|
|
|
7,539
|
|
|
(13,461
|
)
|
|
(2,014
|
)
|
|
23,890
|
|
|||||
Other noninterest income
|
|
106,520
|
|
|
117,311
|
|
|
129,533
|
|
|
131,411
|
|
|
484,775
|
|
|||||
Noninterest expense
|
|
398,063
|
|
|
406,027
|
|
|
438,536
|
|
|
422,666
|
|
|
1,665,292
|
|
|||||
Income before income taxes
|
|
157,331
|
|
|
189,522
|
|
|
148,997
|
|
|
125,573
|
|
|
621,423
|
|
|||||
Net income
|
|
101,210
|
|
|
119,550
|
|
|
95,888
|
|
|
81,814
|
|
|
398,462
|
|
|||||
Preferred stock dividends
|
|
(25,020
|
)
|
|
(15,060
|
)
|
|
(16,761
|
)
|
|
(15,053
|
)
|
|
(71,894
|
)
|
|||||
Net earnings applicable to common shareholders
|
|
76,190
|
|
|
104,490
|
|
|
79,127
|
|
|
66,761
|
|
|
326,568
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.41
|
|
|
$
|
0.56
|
|
|
$
|
0.40
|
|
|
$
|
0.33
|
|
|
$
|
1.68
|
|
Diluted
|
|
0.41
|
|
|
0.56
|
|
|
0.40
|
|
|
0.33
|
|
|
1.68
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2013:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross interest income
|
|
$
|
484,748
|
|
|
$
|
493,233
|
|
|
$
|
473,407
|
|
|
$
|
490,017
|
|
|
$
|
1,941,405
|
|
Net interest income
|
|
418,115
|
|
|
430,657
|
|
|
415,521
|
|
|
432,035
|
|
|
1,696,328
|
|
|||||
Provision for loan losses
|
|
(29,035
|
)
|
|
(21,990
|
)
|
|
(5,573
|
)
|
|
(30,538
|
)
|
|
(87,136
|
)
|
|||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net impairment losses on investment securities
|
|
(10,117
|
)
|
|
(4,217
|
)
|
|
(9,067
|
)
|
|
(141,733
|
)
|
|
(165,134
|
)
|
|||||
Investment securities gains (losses), net
|
|
6,131
|
|
|
1,056
|
|
|
4,745
|
|
|
(6,310
|
)
|
|
5,622
|
|
|||||
Other noninterest income
|
|
125,205
|
|
|
128,309
|
|
|
126,512
|
|
|
116,893
|
|
|
496,919
|
|
|||||
Noninterest expense
|
|
397,348
|
|
|
451,678
|
|
|
370,663
|
|
|
494,750
|
|
|
1,714,439
|
|
|||||
Income before income taxes (benefit)
|
|
171,021
|
|
|
126,117
|
|
|
172,621
|
|
|
(63,327
|
)
|
|
406,432
|
|
|||||
Net income (loss)
|
|
110,387
|
|
|
83,026
|
|
|
111,514
|
|
|
(41,472
|
)
|
|
263,455
|
|
|||||
Net income (loss) applicable to controlling interest
|
|
110,723
|
|
|
83,026
|
|
|
111,514
|
|
|
(41,472
|
)
|
|
263,791
|
|
|||||
Preferred stock dividends
|
|
(22,399
|
)
|
|
(27,641
|
)
|
|
(27,507
|
)
|
|
(17,965
|
)
|
|
(95,512
|
)
|
|||||
Preferred stock redemption
|
|
—
|
|
|
—
|
|
|
125,700
|
|
|
—
|
|
|
125,700
|
|
|||||
Net earnings (loss) applicable to common shareholders
|
|
88,324
|
|
|
55,385
|
|
|
209,707
|
|
|
(59,437
|
)
|
|
293,979
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.48
|
|
|
$
|
0.30
|
|
|
$
|
1.13
|
|
|
$
|
(0.32
|
)
|
|
$
|
1.58
|
|
Diluted
|
|
0.48
|
|
|
0.30
|
|
|
1.12
|
|
|
(0.32
|
)
|
|
1.58
|
|
23.
|
PARENT COMPANY FINANCIAL INFORMATION
|
(In thousands)
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
|||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
2,023
|
|
|
$
|
902,697
|
|
Interest-bearing deposits
|
|
1,007,916
|
|
|
72
|
|
||
Investment securities:
|
|
|
|
|
||||
Held-to-maturity, at adjusted cost (approximate fair value $34,691 and $31,422)
|
|
17,292
|
|
|
17,359
|
|
||
Available-for-sale, at fair value
|
|
130,964
|
|
|
675,895
|
|
||
Other noninterest-bearing investments
|
|
29,091
|
|
|
37,154
|
|
||
Investments in subsidiaries:
|
|
|
|
|
||||
Commercial banks and bank holding company
|
|
6,995,000
|
|
|
6,700,315
|
|
||
Other operating companies
|
|
22,948
|
|
|
31,535
|
|
||
Nonoperating – ZMFU II, Inc.
1
|
|
44,792
|
|
|
44,511
|
|
||
Receivables from subsidiaries:
|
|
|
|
|
||||
Other operating companies
|
|
15,060
|
|
|
—
|
|
||
Other assets
|
|
106,224
|
|
|
278,392
|
|
||
|
|
$
|
8,371,310
|
|
|
$
|
8,687,930
|
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
Other liabilities
|
|
$
|
85,275
|
|
|
$
|
200,729
|
|
Subordinated debt to affiliated trusts
|
|
15,464
|
|
|
15,464
|
|
||
Long-term debt:
|
|
|
|
|
||||
Due to affiliates
|
|
20
|
|
|
17
|
|
||
Due to others
|
|
901,021
|
|
|
2,007,157
|
|
||
Total liabilities
|
|
1,001,780
|
|
|
2,223,367
|
|
||
Shareholders’ equity:
|
|
|
|
|
||||
Preferred stock
|
|
1,004,011
|
|
|
1,003,970
|
|
||
Common stock
|
|
4,723,855
|
|
|
4,179,024
|
|
||
Retained earnings
|
|
1,769,705
|
|
|
1,473,670
|
|
||
Accumulated other comprehensive loss
|
|
(128,041
|
)
|
|
(192,101
|
)
|
||
Total shareholders’ equity
|
|
7,369,530
|
|
|
6,464,563
|
|
||
|
|
$
|
8,371,310
|
|
|
$
|
8,687,930
|
|
1
|
ZMFU II, Inc. is a wholly-owned nonoperating subsidiary whose sole purpose is to hold a portfolio of municipal bonds, loans and leases.
|
(In thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||
Interest income:
|
|
|
|
|
|
|
||||||
Commercial bank subsidiaries
|
|
$
|
1,067
|
|
|
$
|
757
|
|
|
$
|
836
|
|
Other subsidiaries and affiliates
|
|
438
|
|
|
105
|
|
|
386
|
|
|||
Loans and securities
|
|
10,900
|
|
|
17,764
|
|
|
18,993
|
|
|||
Total interest income
|
|
12,405
|
|
|
18,626
|
|
|
20,215
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Affiliated trusts
|
|
511
|
|
|
8,483
|
|
|
24,053
|
|
|||
Other borrowed funds
|
|
116,872
|
|
|
171,304
|
|
|
195,195
|
|
|||
Total interest expense
|
|
117,383
|
|
|
179,787
|
|
|
219,248
|
|
|||
Net interest loss
|
|
(104,978
|
)
|
|
(161,161
|
)
|
|
(199,033
|
)
|
|||
Provision for loan losses
|
|
—
|
|
|
(23
|
)
|
|
(10
|
)
|
|||
Net interest loss after provision for loan losses
|
|
(104,978
|
)
|
|
(161,138
|
)
|
|
(199,023
|
)
|
|||
|
|
|
|
|
|
|
||||||
Other income:
|
|
|
|
|
|
|
||||||
Dividends from consolidated subsidiaries:
|
|
|
|
|
|
|
||||||
Commercial banks and bank holding company
|
|
236,012
|
|
|
421,406
|
|
|
246,606
|
|
|||
Other operating companies
|
|
400
|
|
|
200
|
|
|
5,440
|
|
|||
Nonoperating – ZMFU II, Inc.
|
|
—
|
|
|
—
|
|
|
50,000
|
|
|||
Equity and fixed income securities gains (losses), net
|
|
300,275
|
|
|
(7,332
|
)
|
|
86
|
|
|||
Net impairment losses on investment securities
|
|
—
|
|
|
(95,637
|
)
|
|
(74,153
|
)
|
|||
Other income (loss)
|
|
6,362
|
|
|
(8,397
|
)
|
|
(6,562
|
)
|
|||
|
|
543,049
|
|
|
310,240
|
|
|
221,417
|
|
|||
Expenses:
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
17,457
|
|
|
26,014
|
|
|
20,507
|
|
|||
Debt extinguishment cost
|
|
44,422
|
|
|
120,192
|
|
|
—
|
|
|||
Other operating expenses
|
|
10,557
|
|
|
1,436
|
|
|
395
|
|
|||
|
|
72,436
|
|
|
147,642
|
|
|
20,902
|
|
|||
Income before income taxes and undistributed
income/loss of consolidated subsidiaries
|
|
365,635
|
|
|
1,460
|
|
|
1,492
|
|
|||
Income tax expense (benefit)
|
|
57,430
|
|
|
(133,798
|
)
|
|
(108,541
|
)
|
|||
Income before equity in undistributed income/loss of consolidated subsidiaries
|
|
308,205
|
|
|
135,258
|
|
|
110,033
|
|
|||
Equity in undistributed income (loss) of consolidated subsidiaries:
|
|
|
|
|
|
|||||||
Commercial banks and bank holding company
|
|
101,789
|
|
|
132,906
|
|
|
304,559
|
|
|||
Other operating companies
|
|
(11,997
|
)
|
|
(4,887
|
)
|
|
(15,561
|
)
|
|||
Nonoperating – ZMFU II, Inc.
|
|
465
|
|
|
514
|
|
|
(49,515
|
)
|
|||
Net income
|
|
398,462
|
|
|
263,791
|
|
|
349,516
|
|
|||
Preferred stock dividends
|
|
(71,894
|
)
|
|
(95,512
|
)
|
|
(170,885
|
)
|
|||
Preferred stock redemption
|
|
—
|
|
|
125,700
|
|
|
—
|
|
|||
Net earnings applicable to common shareholders
|
|
$
|
326,568
|
|
|
$
|
293,979
|
|
|
$
|
178,631
|
|
(In thousands)
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
398,462
|
|
|
$
|
263,791
|
|
|
$
|
349,516
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Undistributed net income of consolidated subsidiaries
|
|
(90,257
|
)
|
|
(128,533
|
)
|
|
(239,483
|
)
|
|||
Net impairment losses on investment securities
|
|
—
|
|
|
95,637
|
|
|
74,153
|
|
|||
Debt extinguishment cost
|
|
44,422
|
|
|
120,192
|
|
|
—
|
|
|||
Other, net
|
|
146,374
|
|
|
69,098
|
|
|
4,376
|
|
|||
Net cash provided by operating activities
|
|
499,001
|
|
|
420,185
|
|
|
188,562
|
|
|||
|
|
|
|
|
|
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net decrease (increase) in money market investments
|
|
(1,007,844
|
)
|
|
650,736
|
|
|
305,668
|
|
|||
Collection of advances to subsidiaries
|
|
15,000
|
|
|
10,000
|
|
|
23,190
|
|
|||
Advances to subsidiaries
|
|
(30,060
|
)
|
|
(10,000
|
)
|
|
(23,000
|
)
|
|||
Proceeds from sales and maturities of investment securities
|
|
372,357
|
|
|
27,916
|
|
|
5,433
|
|
|||
Purchases of investment securities
|
|
—
|
|
|
(4,858
|
)
|
|
(3,980
|
)
|
|||
Decrease (increase) of investment in subsidiaries
|
|
(15,060
|
)
|
|
175,000
|
|
|
764,290
|
|
|||
Other, net
|
|
24,319
|
|
|
10,642
|
|
|
3,814
|
|
|||
Net cash provided by (used in) investing activities
|
|
(641,288
|
)
|
|
859,436
|
|
|
1,075,415
|
|
|||
|
|
|
|
|
|
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net change in short-term funds borrowed
|
|
—
|
|
|
(3,368
|
)
|
|
(110,995
|
)
|
|||
Proceeds from issuance of long-term debt
|
|
—
|
|
|
646,408
|
|
|
757,610
|
|
|||
Repayments of long-term debt
|
|
(1,147,641
|
)
|
|
(835,031
|
)
|
|
(372,312
|
)
|
|||
Debt extinguishment cost paid
|
|
(35,435
|
)
|
|
(45,812
|
)
|
|
—
|
|
|||
Proceeds from issuance of preferred stock
|
|
—
|
|
|
784,318
|
|
|
141,342
|
|
|||
Proceeds from issuance of common stock
|
|
526,438
|
|
|
9,825
|
|
|
1,898
|
|
|||
Cash paid for preferred stock redemptions
|
|
—
|
|
|
(799,468
|
)
|
|
(1,542,500
|
)
|
|||
Dividends paid on preferred stock
|
|
(64,868
|
)
|
|
(95,512
|
)
|
|
(126,189
|
)
|
|||
Dividends paid on common stock
|
|
(31,262
|
)
|
|
(24,148
|
)
|
|
(7,392
|
)
|
|||
Other, net
|
|
(5,619
|
)
|
|
(16,137
|
)
|
|
(3,449
|
)
|
|||
Net cash used in financing activities
|
|
(758,387
|
)
|
|
(378,925
|
)
|
|
(1,261,987
|
)
|
|||
Net increase (decrease) in cash and due from banks
|
|
(900,674
|
)
|
|
900,696
|
|
|
1,990
|
|
|||
Cash and due from banks at beginning of year
|
|
902,697
|
|
|
2,001
|
|
|
11
|
|
|||
Cash and due from banks at end of year
|
|
$
|
2,023
|
|
|
$
|
902,697
|
|
|
$
|
2,001
|
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
|
|
(a)
|
|
(b)
|
|
(c)
|
||||||||||
Plan category
1
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity compensation plan approved by security holders
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Zions Bancorporation 2005 Stock Option and Incentive Plan
|
|
5,513,645
|
|
|
|
|
$
|
31.23
|
|
|
|
|
4,164,478
|
|
|
1
|
The schedule does not include information for equity compensation plans assumed by the Company in mergers. A total of 116,857 shares of common stock with a weighted average exercise price of $48.84 were issuable upon exercise of options granted under plans assumed in mergers and outstanding as of
December 31, 2014
. The Company cannot grant additional awards under these assumed plans. Column (a) also excludes 161,220 shares of unvested restricted stock and 1,769,420 restricted stock units (each unit representing the right to one share of common stock).
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
(a)
|
(1) Financial statements – The following consolidated financial statements of Zions Bancorporation and subsidiaries are filed as part of this Form10-K under Item 8, Financial Statements and Supplementary Data:
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
|
|
|
|
3.1
|
|
Restated Articles of Incorporation of Zions Bancorporation dated July 8, 2014, incorporated by reference to Exhibit 3.1 of Form 8-K/A filed on July 18, 2014.
|
*
|
|
|
|
|
3.2
|
|
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.
|
*
|
|
|
|
|
4.1
|
|
Senior Debt Indenture dated September 10, 2002 between Zions Bancorporation and The Bank of New York Mellon Trust Company, N.A. as successor to J.P. Morgan Trust Company, N.A., as trustee, with respect to senior debt securities of Zions Bancorporation, incorporated by reference to Exhibit 4.1 of Form 10-K for the year ended December 31, 2011.
|
*
|
|
|
|
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
4.2
|
|
Subordinated Debt Indenture dated September 10, 2002 between Zions Bancorporation and The Bank of New York Mellon Trust Company, N.A. as successor to J.P. Morgan Trust Company, N.A., as trustee, with respect to subordinated debt securities of Zions Bancorporation, incorporated by reference to Exhibit 4.2 of Form 10-K for the year ended December 31, 2011.
|
*
|
|
|
|
|
4.3
|
|
Junior Subordinated Indenture dated August 21, 2002 between Zions Bancorporation and The Bank of New York Mellon Trust Company, N.A. as successor to J.P. Morgan Trust Company, N.A., as trustee, with respect to junior subordinated debentures of Zions Bancorporation, incorporated by reference to Exhibit 4.3 of Form 10-K for the year ended December 31, 2011.
|
*
|
|
|
|
|
4.4
|
|
Warrant to purchase up to 5,789,909 shares of Common Stock, issued on November 14, 2008, incorporated by reference to Exhibit 4.4 of Form 10-K for the year ended December 31, 2013.
|
*
|
|
|
|
|
4.5
|
|
Warrant Agreement, between Zions Bancorporation and Zions First National Bank, and Warrant Certificate, incorporated by reference to Exhibit 4.1 of Form 10-Q for the quarter ended September 30, 2010.
|
*
|
|
|
|
|
10.1
|
|
Zions Bancorporation 2012-2014 Value Sharing Plan, incorporated by reference to Exhibit 10.3 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.2
|
|
Zions Bancorporation 2013-2015 Value Sharing Plan, incorporated by reference to Exhibit 10.4 of Form 10-Q for the quarter ended September 30, 2013.
|
*
|
|
|
|
|
10.3
|
|
Zions Bancorporation 2014-2016 Value Sharing Plan, incorporated by reference to Exhibit 10.1 of Form 10-Q for the quarter ended September 30, 2014.
|
*
|
|
|
|
|
10.4
|
|
2012 Management Incentive Compensation Plan, incorporated by reference to Exhibit 10.1 of Form 10-Q for the quarter ended June 30, 2012.
|
*
|
|
|
|
|
10.5
|
|
Zions Bancorporation Third Restated and Revised Deferred Compensation Plan, incorporated by reference to Exhibit 10.1 of Form 10-Q for the quarter ended September 30, 2013.
|
*
|
|
|
|
|
10.6
|
|
Zions Bancorporation Fourth Restated Deferred Compensation Plan for Directors, incorporated by reference to Exhibit 10.2 of Form 10-Q for the quarter ended September 30, 2013.
|
*
|
|
|
|
|
10.7
|
|
Amended and Restated Amegy Bancorporation, Inc. Non-Employee Directors Deferred Fee Plan, incorporated by reference to Exhibit 10.3 of Form 10-Q for the quarter ended September 30, 2013.
|
*
|
|
|
|
|
10.8
|
|
Zions Bancorporation First Restated Excess Benefit Plan (filed herewith).
|
|
|
|
|
|
10.9
|
|
Trust Agreement establishing the Zions Bancorporation Deferred Compensation Plan Trust by and between Zions Bancorporation and Cigna Bank & Trust Company, FSB effective October 1, 2002, incorporated by reference to Exhibit 10.9 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.10
|
|
Amendment to the Trust Agreement establishing the Zions Bancorporation Deferred Compensation Plan Trust by and between Zions Bancorporation and Cigna Bank & Trust Company, FSB substituting Prudential Bank & Trust, FSB as the trustee, incorporated by reference to Exhibit 10.12 of Form 10-K for the year ended December 31, 2010.
|
*
|
|
|
|
|
10.11
|
|
Amendment to Trust Agreement Establishing the Zions Bancorporation Deferred Compensation Plans Trust, effective September 1, 2006, incorporated by reference to Exhibit 10.11 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
10.12
|
|
Fifth Amendment to Trust Agreement between Fidelity Management Trust Company and Zions Bancorporation for the Deferred Compensation Plans, incorporated by reference to Exhibit 10.5 of Form 10-Q for the quarter September 30, 2013.
|
*
|
|
|
|
|
10.13
|
|
Zions Bancorporation Deferred Compensation Plans Master Trust between Zions Bancorporation and Fidelity Management Trust Company, effective September 1, 2006, incorporated by reference to Exhibit 10.12 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.14
|
|
Revised schedule C to Zions Bancorporation Deferred Compensation Plans Master Trust between Zions Bancorporation and Fidelity Management Trust Company, effective September 13, 2006, incorporated by reference to Exhibit 10.13 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.15
|
|
Third Amendment to the Zions Bancorporation Deferred Compensation Plans Master Trust agreement between Zions Bancorporation and Fidelity Management Trust Company, dated June 13, 2012, incorporated by reference to Exhibit 10.6 of Form 10-Q for the quarter ended June 30, 2012.
|
*
|
|
|
|
|
10.16
|
|
Zions Bancorporation Restated Pension Plan effective January 1, 2002, including amendments adopted through December 31, 2010, incorporated by reference to Exhibit 10.16 of Form 10-K for the year ended December 31, 2010.
|
*
|
|
|
|
|
10.17
|
|
First amendment to the Zions Bancorporation Pension Plan, dated June 28, 2013, incorporated by reference to Exhibit 10.1 of Form 10-Q for the quarter ended June 30, 2013.
|
*
|
|
|
|
|
10.18
|
|
Zions Bancorporation Executive Management Pension Plan (filed herewith).
|
|
|
|
|
|
10.19
|
|
Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan, Restated and Amended effective January 1, 2002, including amendments adopted thru December 31, 2010, incorporated by reference to Exhibit 10.18 of Form 10-K for the year ended December 31, 2010.
|
*
|
|
|
|
|
10.20
|
|
First Amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan, dated November 14, 2012, incorporated by reference to Exhibit 10.18 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.21
|
|
Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust Agreement between Zions Bancorporation and Fidelity Management Trust Company, dated July 3, 2006, incorporated by reference to Exhibit 10.19 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.22
|
|
First Amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust Agreement between Zions Bancorporation and Fidelity Management Trust Company, dated April 5, 2010, incorporated by reference to Exhibit 10.2 of Form 10-Q for the quarter ended June 30, 2010.
|
*
|
|
|
|
|
10.23
|
|
Second Amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust Agreement between Zions Bancorporation and Fidelity Management Trust Company, dated April 5, 2010, incorporated by reference to Exhibit 10.2 of Form 10-Q for the quarter ended June 30, 2010.
|
*
|
|
|
|
|
10.24
|
|
Third Amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust Agreement between Zions Bancorporation and Fidelity Management Trust Company, dated April 30, 2010, incorporated by reference to Exhibit 10.3 of Form 10-Q for the quarter ended June 30, 2010.
|
*
|
|
|
|
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
10.25
|
|
Fourth Amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust Agreement between Zions Bancorporation and Fidelity Management Trust Company, dated October 1, 2014 (filed herewith).
|
|
|
|
|
|
10.26
|
|
Fifth Amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust Agreement between Zions Bancorporation and Fidelity Management Trust Company, dated October 1, 2014 (filed herewith).
|
|
|
|
|
|
10.27
|
|
Amended and Restated Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.2 of Form 10-Q for the quarter ended June 30, 2012.
|
*
|
|
|
|
|
10.28
|
|
Standard Stock Option Award Agreement, Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.3 of Form 10-Q for the quarter ended June 30, 2012.
|
*
|
|
|
|
|
10.29
|
|
Standard Restricted Stock Award Agreement, Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.4 of Form 10-Q for the quarter ended June 30, 2012.
|
*
|
|
|
|
|
10.30
|
|
Standard Restricted Stock Unit Award Agreement, Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.5 of Form 10-Q for the quarter ended June 30, 2012.
|
*
|
|
|
|
|
10.31
|
|
Standard Directors Stock Option Award Agreement, Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.29 of Form 10-K for the year ended December 31, 2010.
|
*
|
|
|
|
|
10.32
|
|
Standard Directors Restricted Stock Award Agreement, Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.4 of Form 10-Q for the quarter ended June 30, 2009.
|
*
|
|
|
|
|
10.33
|
|
Standard Directors Restricted Stock Unit Award Agreement, Zions Bancorporation 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.28 of Form 10-K for the year ended December 31, 2011.
|
*
|
|
|
|
|
10.34
|
|
Form of Performance Stock Option Award Agreement, 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.6 of Form 10-Q for the quarter ended September 30, 2013.
|
*
|
|
|
|
|
10.35
|
|
Form of Performance Restricted Stock Unit Award Agreement, 2005 Stock Option and Incentive Plan, incorporated by reference to Exhibit 10.7 of Form 10-Q for the quarter ended September 30, 2013.
|
*
|
|
|
|
|
10.36
|
|
Amegy Bancorporation 2004 (formerly Southwest Bancorporation of Texas, Inc.) Omnibus Incentive Plan, incorporated by reference to Exhibit 10.47 of Form 10-K for the year ended December 31, 2009.
|
*
|
|
|
|
|
10.37
|
|
Form of Change in Control Agreement between the Company and Certain Executive Officers, incorporated by reference to Exhibit 10.37 of Form 10-K for the year ended December 31, 2012.
|
*
|
|
|
|
|
10.38
|
|
Addendum to Change in Control Agreement (filed herewith).
|
|
|
|
|
|
10.39
|
|
Form of Change in Control Agreement between the Company and Dallas E. Haun, dated May 23, 2008 (filed herewith).
|
|
|
|
|
|
12
|
|
Ratio of Earnings to Fixed Charges (filed herewith).
|
|
|
|
|
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
21
|
|
List of Subsidiaries of Zions Bancorporation (filed herewith).
|
|
|
|
|
|
23
|
|
Consent of Independent Registered Public Accounting Firm (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 December 31, 2014 and December 31, 2013, (ii) the Consolidated Statements of Income for the years ended December 31, 2014, December 31, 2013, and December 31, 2012, (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, December 31, 2013, and December 31, 2012, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2014, December 31, 2013, and December 31, 2012, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2014, December 31, 2013, and December 31, 2012 and (vi) the Notes to Consolidated Financial Statements (filed herewith).
|
|
By
|
/s/ Harris H. Simmons
|
|
HARRIS H. SIMMONS, Chairman,
President and Chief Executive Officer
|
/s/ Harris H. Simmons
|
|
/s/ Doyle L. Arnold
|
HARRIS H. SIMMONS, Director, Chairman, President and Chief Executive Officer
(Principal Executive Officer)
|
|
DOYLE L. ARNOLD, Vice Chairman and
Chief Financial Officer
(Principal Financial Officer)
|
/s/ Alexander J. Hume
|
|
/s/ Jerry C. Atkin
|
ALEXANDER J. HUME, Controller
(Principal Accounting Officer)
|
|
JERRY C. ATKIN, Director
|
/s/ John C. Erickson
|
|
/s/ Patricia Frobes
|
JOHN C. ERICKSON, Director
|
|
PATRICIA FROBES, Director
|
/s/ J. David Heaney
|
|
/s/ Edward F. Murphy
|
J. DAVID HEANEY, Director
|
|
EDWARD F. MURPHY, Director
|
/s/ Roger B. Porter
|
|
/s/ Stephen D. Quinn
|
ROGER B. PORTER, Director
|
|
STEPHEN D. QUINN, Director
|
/s/ L. E. Simmons
|
|
/s/ Steven C. Wheelwright
|
L. E. SIMMONS, Director
|
|
STEVEN C. WHEELWRIGHT, Director
|
/s/ Shelley Thomas Williams
|
|
|
SHELLEY THOMAS WILLIAMS, Director
|
|
|
(a)
|
all amounts which have been credited under this Plan based upon the Participant’s benefit credited under the SERP as of December 31, 2002;
|
(b)
|
all amounts which have been credited under this Plan based upon the Participant’s benefit credited under the Grossmont Bank Deferred Compensation Plan for Key Employees as of December 31, 2002;
|
(c)
|
all amounts which are credited under Section 4.3; and
|
(e)
|
the Company terminates the Participant’s employment for any act of willful malfeasance, gross misconduct or gross negligence in the performance of his or her duties; or
|
(f)
|
the Participant enters into competition with the Company without the prior written permission of the Board of Zions Bancorporation.
|
(a)
|
Great Grandfather Benefits.
A SERP Participant who continues to receive a benefit accrual under Section 4.4 of the Pension Plan shall receive Company contribution credits to his or her Benefit Account at a rate equal to the actuarial equivalent of the annual benefit accrual under the Pension Plan, but only on the amount of Compensation (as defined in this Plan) which exceeds the level taken into account under the Pension Plan.
|
(b)
|
Grandfather Benefits.
A SERP Participant who continues to receive a benefit accrual under Section 4.8 of the Pension Plan shall receive Company contribution credits to his or her Benefit Account at a rate equal to the annual benefit accrual rate described in section 3.2(g) of the Pension Plan, but only on the amount of Compensation (as defined in this Plan) which exceeds the level taken into account under the Pension Plan. The Company contribution credit hereunder shall not include any equivalent amount for interest credits which may be provided under section 3.3 of the Pension Plan.
|
(c)
|
Other SERP Participant Benefits.
A SERP Participant, whether or not entitled to a Company contribution credit under (a) or (b) above, shall receive Company contribution credits under this Plan on an annual basis at a rate equal to the rate of the employer non-elective contribution made to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan (“Payshelter ESOP”) under section 5.07 thereof, but only on the amount of Compensation (as defined in this Plan) which exceeds the level taken into account under the Payshelter ESOP.
|
(a)
|
Time of Payment.
A Participant’s vested Deferral Account balance shall be paid (or commence to be paid) as soon as administratively feasible but not later than the later of December 31 of the year in which such Participant right to payment occurred or the 15th day of the third month following such date.
|
(b)
|
Manner of Payment.
A Participant’s vested Deferral Account will be paid in accordance with the election the Participant made in the Deferred Compensation Agreement. The Deferred Compensation Agreement shall provide the Participant a right to elect a lump sum cash payment, or a series of substantially equal separate monthly payments over a period of five (5), ten (10), fifteen (15) or twenty (20) years. If no election has been made by the Participant, the Deferral Account will be paid in a series of substantially equal monthly payments over a period of five years. The final monthly installment payment shall be the remaining balance in the Participant’s Deferral Account on the date the payment is made.
|
(c)
|
Value of Benefit Account Balance.
The value of a Participant’s Benefit Account to be distributed shall be determined as of the date a payment is made, and shall be charged with distributions and adjusted for gains and losses, through such date.
|
(a)
|
Committee Determination.
The Committee shall within a reasonable time determine whether the order is a QDRO and shall notify the Participant or Beneficiary whose benefit is the subject of the order, of its determination. The Committee may designate a representative to carry out its duties under this provision.
|
(b)
|
Compliance with Section 409A.
Nothing in this Section 8.3(b) shall be would violate Section 409A of the Code and any regulations promulgated hereunder and no payment shall occur prior to the date that the Participant whose benefits are subject to the QDRO would have been entitled to receive payment in accordance with any Deferred Compensation Agreement in existence as of the date of the QDRO. In the event that the QDRO applies to deferrals which occur after the date of the QDRO,
|
(a)
|
“
Alternate Payee
” shall mean any spouse, former spouse, child or other dependent of a Participant who is recognized by a QDRO as having a right to receive all, or a portion of, the benefits payable under this Plan with respect to the Participant.
|
(b)
|
“
Domestic Relations Order
” shall mean any judgment, decree, or order (including approval of a property settlement agreement) which:
|
(c)
|
“
Qualified Domestic Relations Order
” shall mean any Domestic Relations Order which satisfies the criteria set forth as a QDRO under policies established by the Committee.
|
1.1
|
Accrued Benefit means the monthly amount of benefit credited to a Participant in accordance with Section 3.1.
|
1.2
|
Code means the Internal Revenue Code of 1986, as amended.
|
1.3
|
Committee means the Retirement Committee appointed to administer the Pension Plan.
|
1.4
|
Company means Zions Bancorporation and any affiliate or subsidiary which adopts this Plan with the consent of the Board of Directors of Zions Bancorporation.
|
1.5
|
Effective Date means January 1, 1994.
|
1.6
|
ERISA means the Employee Retirement Income Security Act of 1974, as amended.
|
1.7
|
Executive Management Plan Benefit means a Participant’s monthly accrued benefit under this Plan determined in accordance with Section 3.1.
|
1.8
|
Executive Management Retirement Income means a Participant’s monthly retirement income under this Plan determined in accordance with Article3.
|
1.9
|
Participant means an employee or former employee of the Company who is eligible for an Executive Management Plan Benefit in accordance with Article 2.
|
2.1
|
Participants
|
(a)
|
the employee is, or has been, a member of the Company’s Executive Management Committee on or after the Effective Date, and
|
(b)
|
the employee is (1) employed in a management position with the Company having principal responsibility for the management, direction and success of the Company as a whole or a particular business unit thereof, or (2) a highly compensated employee of the Company within the meaning of ERISA Section 401.
|
3.1
|
Amount of Accrued Benefit A Participant’s Executive Management Plan Benefit is equal to the excess of the Participant’s Unrestricted Pension Plan Benefit over the Participant’s Pension Plan Benefit.
|
3.2
|
Executive Management Retirement Income A Participant’s monthly Executive Management Retirement Income commencing on his or her retirement Date will be equal to his or her Executive Management Plan Benefit as of such date adjusted to reflect the form of retirement income elected and, in the case of an early retirement date, adjusted to reflect the age of the Participant on the date benefit payments commence.
|
3.3
|
Forms of Retirement Income The forms of retirement income available under this Plan are the same as those described in the Pension Plan. A Participant’s election of any form of retirement income or benefit commencement date under the Pension Plan will be deemed to apply to any Executive Management Retirement Income under this Plan.
|
4.1
|
Vesting
|
(a)
|
The Company terminates the Participant’s employment for any act of willful malfeasance or gross negligence in the performance of his or her duties.
|
(b)
|
The Participant enters into competition with the Company without the prior written permission of Company’s Board of Directors.
|
5.1
|
Payment of Disability Benefit
|
6.1
|
Preretirement Death Benefit
|
6.2
|
Postretirement Death Benefit
|
7.2
|
Administration
|
7.3
|
Employment Status
|
7.4
|
Amendment and Termination of Plan
|
7.5
|
Provision Against Anticipation
|
(1)
|
Restating Section 6(c),
Inspection and Audit
, in its entirety, as follows:
|
(2)
|
Amending Section 7,
Compensation and Expenses
, by replacing the first paragraph in its entirety with the following:
|
(3)
|
Amending to add a new Section 22,
Use of Omnibus Accounts
, as follows:
|
•
|
If contributions and instructions to purchase investment options are received by
the Trustee
In Good Order before the close of trading,
the Trustee
executes transactions in the investment options as of that day’s closing price (the “transaction date” or “T”). Contributions are held in the omnibus account until the following business day (“T+1”) for the vast majority of investment options. For share accounted company stock transactions, contributions may be held in the omnibus account until T+3.
|
•
|
Instructions to exchange investment options received by
the Trustee
In Good Order before the close of trading are processed in that day's nightly cycle. For the vast majority of investment options, exchanges generate no overnight balances, as money is received from one investment option and conveyed to another investment option on the same business day. The limited exceptions to this would occur if investment options have different settlement rules and
Fidelity
Management Trust Company serves as trustee of the Plan, in which case balances attributable to the exchange may remain in an omnibus account for a few days.
|
•
|
Instructions to make disbursements received In Good Order before the close of trading are processed in that day's nightly cycle and reflected as debits from participant accounts as of that date ("T"). Proceeds attributable to the disbursement are received into the omnibus account based on the settlement period for the investment options, which in the substantial majority of investment options is T+1. After the deduction of tax withholding, if applicable, disbursements are typically made on T+2 or T+3 either through electronic funds transfers or by mailing a check. Disbursement proceeds distributed by check, net of any tax withholdings, remain in the omnibus account until the check is presented for payment.
|
(4)
|
Restating Schedule B,
Fee Schedule
, in its entirety, as attached herein.
|
(5)
|
Amending to add Schedule B-1 as attached hereto.
|
ZIONS BANCORPORATION
|
FIDELITY MANAGEMENT TRUST
|
Core Fees
|
Annual Administration
|
This annual fee is prorated and billed quarterly. The annual fee applies to any record with a balance greater than zero ($0) in the plan at any time during the calendar year. This includes the remainder of the year in which a final distribution is made.
|
$55 per participant
|
Transaction Fees
|
Fee
|
Per
|
Loan Initiation
|
$100
|
Loan Initiated
|
Loan Maintenance Fee
|
$0
|
Per Quarter
|
In-Service Non Hardship Withdrawals
|
$20
|
Check/EFT
|
Return of Excess Contributions/Deferrals
|
$25
|
Check/EFT
|
Mailing Documents/Checks via Overnight Service
|
$25
|
Item
|
Minimum Required Distributions
|
$25
|
Check/EFT
|
Ongoing Communication and Education
|
Fixed Dollar Model
|
Fidelity’s personalized, comprehensive employee experience program delivered directly to your participants via their preferred channel including print, e-mail, web, and phone:
1.
Multi-Touch Enrollment
2.
Onboarding Program
3.
Needs-Based Workplace Campaigns
4.
Needs-Based Life Stage Messaging Campaigns
5.
Educational campaigns for retirees and job changers
Associated postage is included.
|
Included
|
Custom materials development (including graphic design, typesetting, writing, layout, video production and language translation)
|
Fee for Service
|
Print, Fulfillment and Distribution for custom communications
|
Fee for Service
|
Postage for Custom Communications
|
Pass Through
|
Fidelity Participant Disclosure Service - 404a-5 Disclosure Program
•
Develop and Distribute initial and annual notices at client direction to assist with compliance of 404a-5 upon effective date. Notice available via print or eDelivery (in accordance with DoL eDelivery rules)
•
Develop and distribute custom notices related to changes in participant and/or transaction fees at client direction to assist with compliance of 404a-5 upon effective date. Notice available via print or e-delivery (in accordance with DOL e-delivery rules).
|
Development: Included
Distribution: Included
Development: Fee-for-Service
Distribution: Pass Through
|
Employee Meetings Days On Site (up to 4 meetings per day)
Note: Subject to the cancellation and minimum attendance policy.
|
3 days included with additional days available for $1,800 per day
|
Live Plan Specific Web Workshop Sessions
Note: Subject to the minimum attendance policy.
|
3 sessions included with additional sessions available for $400 per session
|
Online, On Demand, Plan Specific pre-recorded webcasts
|
2 recordings included with additional recordings available for $900 per recording with unlimited viewings
|
Standard Universal Live and Recorded Web Workshops
|
Included
|
Educational content on-line including e-learning, Fidelity Viewpoints® - Workplace Edition Magazine online, educational articles and calculators, and plan level information
|
Included
|
One-on-one, On-site Meetings, including scheduled appointments on the same day as the on-site employee group meetings and scheduled appointments on separate days that are targeted to pre-retirees
|
Included
|
Retirement Transition Services helps employees age 50+ make the health and wealth decisions that are right for them so they can successfully transition into the next phase of life. Delivered through live guidance, online planning tools, and targeted education.
|
Included
|
Communications Effectiveness Scorecard
|
Included
|
Fidelity Management Trust Company (FMTC) Services
|
|
Core Trustee Services
Assets Subject to Review and Approval
|
Included
|
Company Stock Administration
|
|
Real Time Stock Trading Administration
|
Waived
|
Company Stock Dividend Pass Through
|
$3 per EFT
$6 per Check
Reinvest is Included
|
Full Proxy Services Administration, Mailing, and Tabulation
|
Pass Through
|
Full File on Shareholders for External Proxy Services
|
Included
|
Company Stock Trading Commission
|
Fee
|
Per
|
Real Time Trading
|
$0.029
|
Per Buy/Sell Share
|
Stock Administration Services are not available to clients using a third party Trustee.
Fee quotes assume that all trades to be executed by Fidelity Capital Markets (“Capital Markets”), a division of National Financial Services LLC. The Real Time and Share Accounted products require the use of Capital Markets.
Please note: The SEC requires all firms to charge an SEC fee of $22.10 per $1,000,000 on all executed sell orders. This fee may change and the last change to the fee became effective 3/18/2014.
|
Recordkeeping of Externally Managed Investment Options
Assumes Fidelity receives a daily NAV net of management fees, in accordance with Fidelity’s operational requirements.
If Fidelity is required to calculate the NAV, please refer to FMTC Services Section.
|
Included
|
|
|
Special Projects
|
|||
Fulfilling a client-specific request that is not included in the services as documented in the assumptions herein, and any scope and/or service documents which Fidelity has provided or provided a response. Examples include:
•
Plan and program changes
•
Change in scope of existing services as documented in directions documents describing the services
•
Client-specific processing requested as an alternative to Fidelity’s standard solution, including any additional resources to support said non-standard solution (e.g. change to data feeds, special offering windows, and procedural changes)
•
Support of Corporate Actions. Examples include reorganization, layoff, mergers, acquisitions and divestitures
•
Custom communications development
|
$175/hour
|
||
Travel and related expenses for Special Projects
|
Pass Through
|
QDRO Qualifications
|
|
Web review of one defined contribution order generated on the Fidelity QDRO website and not materially altered.
|
$300 each
|
Manual review of one defined contribution plan mentioned in an order that was not generated on the QDRO website or was generated on the website, but materially altered
|
$1,200 each
|
Manual review of a combination of any two or more defined contribution plans mentioned in an Order.
|
$1,800 each
|
Regulatory
|
Fixed Dollar Model
|
Form 5500 Reporting and Preparation Services
|
Included
|
SAR preparation
|
Included
|
SAR production, distribution and postage
|
Pass Through
|
Package Election
|
<1,000 parts
|
1,001 – 10,000 parts
|
10,001 – 25,000 parts
|
25,001 – 50,000 parts
|
>50,001 parts
|
Safe Harbor
|
Included
|
Included
|
Included
|
Included
|
Included
|
Type of Tests Included With Each Package
|
||||||||||||
Package Type
|
ADP
|
ACP
|
*402(g)
|
415
|
Minimum Coverage
|
Top Heavy
|
Proj Test
|
QNEC Calc
|
* Gen Test
|
* BRF Test
|
Comp Test
|
* ABT Test
|
Safe Harbor Package
|
|
|
P
|
P
|
P
|
P
|
|
|
|
|
|
|
•
|
402(g) Testing – Testing & Reporting Services (TRS) will not complete a 402(g) test for off calendar plans
.
|
•
|
General Testing and Average Benefits Testing – all plans involved in the testing must be at Fidelity for TRS to perform.
|
•
|
Benefits, Rights and Features Testing – TRS will only complete this test as it pertains to each rate of matching contribution contained within the terms of the plan(s) and the plan must also be signed up for Minimum Coverage Ratio Percentage Testing.
|
•
|
Top Heavy Testing – TRS will not perform Top Heavy Testing for each unrelated employer.
|
•
|
Safe Harbor plans – this service can only be elected if the plan does not have an After-Tax feature in the plan and does not have special eligibility provisions for the matching contribution. If they do, the plan will have to elect either the Comprehensive or Basic package.
|
|
Plan Name
|
Plan Type
|
Defined Contribution
|
Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan
|
Qualified
|
|
Total
|
Total Participants
|
13,762
|
Plan Assets as of 06/30/2014
|
$854 m
|
General
|
The following is not included in the per-participant or per-employee fees quoted, unless specifically stated. Fees for such work will be based on scope and complexity.
•
Fidelity’s agreement to modify standard Fidelity manual or automated processes, as well as systems development to accommodate specific client administrative needs
•
Systems development effort necessary to accommodate specific client administrative or plan needs unless specifically noted.
•
Integrating new policies, plan rules, or employee groups resulting from mergers, acquisitions, terminating plans or divestitures.
|
Ongoing Assumptions
|
•
Sponsor will provide an annual schedule for payroll file transmissions.
•
Files to be received weekly or bi-weekly
•
Sponsor will provide all required information for transfers coming into the plan in the Fidelity format.
|
Service Model Assumptions
|
•
Fidelity's standard services to be delivered, unless specifically stated otherwise
•
Sponsor is a single entity with respect to all products and services offered by Fidelity
|
•
|
Previous Year Net Cash Flow (year ending 12/31/2013) = $13.5M
|
•
|
The availability of any non-Fidelity investment options depends upon completion of a contractual operational arrangement between Fidelity and such non-Fidelity fund vendor.
|
•
|
Custom strategy or non-40 act funds will require a fund description provided to Fidelity by either Sponsors consultant or non-Fidelity vendor 90 days prior to the fund live date.
|
•
|
Some funds carry a short-term trading fee on shares held less than the period specified in the prospectus. Please note that any short-term trading fee is paid to the fund for the benefit of the shareholders, not Fidelity. Please refer to the prospectus.
|
(a)
|
Actively managed (non Class K) Fidelity equity Mutual Funds: 35 basis points per annum;
|
(b)
|
Actively managed (non Class K) Fidelity Freedom
®
Funds: 35 basis points per annum;
|
(c)
|
Actively managed (Class K) Fidelity equity Mutual Funds: 20 basis points per annum;
|
(f)
|
Actively managed Fidelity fixed income and money market Mutual Funds, except for certain Fidelity institutional money market Mutual Funds (e.g. FIMM Funds): 20 basis points per annum;
|
(g)
|
Actively managed Fidelity and Pyramis commingled pools (excluding all stable value commingled pools): 10 basis points per annum;
|
1.
|
Crediting Date
: Participant Revenue Credits shall be allocated to the accounts of Eligible Participants as soon as administratively feasible (generally within 15 business days) after a quarterly recordkeeping invoice has been prepared and sent.
|
2.
|
Allocation Method
: Allocations shall be made to Eligible Participants pro rata based on the ratio of each Participant’s balance in the fund to the total average daily balances for all Eligible Participants in such fund. The Allocations will be used to purchase whole and fractional shares of the investments in the Eligible Participant Accounts. In the event a residual amount is insufficient to purchase a fractional share it will not be funded.
|
3.
|
Eligible Participants
: An Eligible Participant for any quarter’s allocation shall be any Participant or Beneficiary with a Fidelity Account balance greater than zero.
|
4.
|
Directions
: In allocating to Eligible Participants, the Trustee shall follow directions attached as Schedule B-1.
|
1.
|
The obligation to make 12b-1 Payments shall continue in effect for one year from the Effective Date of this amendment, and shall continue for successive annual periods only upon at least annual approval by a vote of the majority of the Trustees for each of those Fidelity Mutual Funds that have adopted such plans, including a majority of those Trustees that are not "interested persons" (as defined in the 1940 Act) of such Mutual Funds and who have no direct or indirect financial interest in the operation of the plan or any agreement related thereto ("Qualified Trustees").
|
2.
|
Notwithstanding any provision hereof to the contrary, the obligation to make these 12b-1 Payments with respect to any plan may be terminated without penalty at any time, upon either a vote of a majority of the Qualified Trustees, or upon a vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the applicable Fidelity Mutual Fund to terminate or not continue the plan for the applicable Fidelity Mutual Fund.
|
3.
|
Upon assignment of this Agreement, the obligation to make 12b-1 Payments shall automatically terminate.
|
(1)
|
Amending the “Participant Revenue Credit” section of Schedule “B”,
Fee Schedule
, to restate subsection A.
Calculation
, in its entirety, to read as follows:
|
(a)
|
Actively managed (non Class K) Fidelity equity Mutual Funds: 35 basis points per annum;
|
(b)
|
Actively managed (non Class K) Fidelity Freedom
®
Funds: 35 basis points per annum;
|
(c)
|
Actively managed (Class K) Fidelity equity Mutual Funds: 20 basis points per annum;
|
(e)
|
Fidelity Enhanced Equity Index Funds: 10 basis points per annum;
|
(f)
|
Actively managed Fidelity fixed income and money market Mutual Funds, except for certain Fidelity institutional money market Mutual Funds (e.g. FIMM Funds): 20 basis points per annum;
|
(g)
|
Actively managed Fidelity and Pyramis commingled pools (excluding all stable value commingled pools): 10 basis points per annum;
|
ZIONS BANCORPORATION
|
FIDELITY MANAGEMENT TRUST
|
1.
|
Amendments
|
A.
|
Timing of Single-Trigger Change in Control Payment of Senior Management Value Sharing Awards
|
2.
|
Other Actions
|
3.
|
General Provisions
|
(Dollar amounts in thousands)
|
|
Year ended December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense excluding deposits
|
|
$
|
123,175
|
|
|
$
|
185,391
|
|
|
$
|
225,482
|
|
|
$
|
303,769
|
|
|
$
|
395,961
|
|
Portion of rents representative of an interest factor
|
|
19,732
|
|
|
19,468
|
|
|
19,568
|
|
|
19,285
|
|
|
19,886
|
|
|||||
Fixed charges excluding interest on deposits
|
|
142,907
|
|
|
204,859
|
|
|
245,050
|
|
|
323,054
|
|
|
415,847
|
|
|||||
Interest on deposits
|
|
49,823
|
|
|
59,686
|
|
|
81,300
|
|
|
128,627
|
|
|
196,495
|
|
|||||
Fixed charges including interest on deposits
|
|
$
|
192,730
|
|
|
$
|
264,545
|
|
|
$
|
326,350
|
|
|
$
|
451,681
|
|
|
$
|
612,342
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges and preferred stock dividends:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense excluding deposits
|
|
$
|
123,175
|
|
|
$
|
185,391
|
|
|
$
|
225,482
|
|
|
$
|
303,769
|
|
|
$
|
395,961
|
|
Portion of rents representative of an interest factor
|
|
19,732
|
|
|
19,468
|
|
|
19,568
|
|
|
19,285
|
|
|
19,886
|
|
|||||
Preferred stock dividend requirement
|
|
112,123
|
|
|
147,281
|
|
|
265,450
|
|
|
274,928
|
|
|
122,884
|
|
|||||
Fixed charges and preferred stock dividends excluding interest on deposits
|
|
255,030
|
|
|
352,140
|
|
|
510,500
|
|
|
597,982
|
|
|
538,731
|
|
|||||
Interest on deposits
|
|
49,823
|
|
|
59,686
|
|
|
81,300
|
|
|
128,627
|
|
|
196,495
|
|
|||||
Fixed charges and preferred stock dividends including interest on deposits
|
|
$
|
304,853
|
|
|
$
|
411,826
|
|
|
$
|
591,800
|
|
|
$
|
726,609
|
|
|
$
|
735,226
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations before income taxes
|
|
$
|
621,423
|
|
|
$
|
406,432
|
|
|
$
|
541,566
|
|
|
$
|
521,273
|
|
|
$
|
(403,168
|
)
|
Equity in undistributed earnings of unconsolidated subsidiaries
|
|
(7,996
|
)
|
|
(11,066
|
)
|
|
(13,983
|
)
|
|
(5,956
|
)
|
|
(6,757
|
)
|
|||||
Fixed charges excluding interest on deposits
|
|
142,907
|
|
|
204,859
|
|
|
245,050
|
|
|
323,054
|
|
|
415,847
|
|
|||||
Earnings excluding interest on deposits
|
|
756,334
|
|
|
600,225
|
|
|
772,633
|
|
|
838,371
|
|
|
5,922
|
|
|||||
Interest on deposits
|
|
49,823
|
|
|
59,686
|
|
|
81,300
|
|
|
128,627
|
|
|
196,495
|
|
|||||
Earnings including interest on deposits
|
|
$
|
806,157
|
|
|
$
|
659,911
|
|
|
$
|
853,933
|
|
|
$
|
966,998
|
|
|
$
|
202,417
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Excluding interest on deposits
|
|
5.29
|
|
|
2.93
|
|
|
3.15
|
|
|
2.60
|
|
|
(a)
|
|
|||||
Including interest on deposits
|
|
4.18
|
|
|
2.49
|
|
|
2.62
|
|
|
2.14
|
|
|
(a)
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges and preferred stock dividends:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Excluding interest on deposits
|
|
2.97
|
|
|
1.70
|
|
|
1.51
|
|
|
1.40
|
|
|
(a)
|
|
|||||
Including interest on deposits
|
|
2.64
|
|
|
1.60
|
|
|
1.44
|
|
|
1.33
|
|
|
(a)
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(a) Ratio is less than one; earnings are inadequate to cover fixed charges. The dollar amount of the coverage deficiency for the affected periods is presented is presented below. The amount is the same whether including or excluding interest on deposits:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Coverage deficiency – earnings to fixed charges
|
|
|
|
|
|
|
|
|
|
$
|
(409,925
|
)
|
||||||||
Coverage deficiency – earnings to fixed charges and preferred stock dividends
|
|
|
|
|
|
|
|
|
|
(532,809
|
)
|
SUBSIDIARY
|
STATE OR JURISDICTION OF
INCORPORATION/ORGANIZATION
|
|
|
Zions First National Bank
|
Federally chartered doing business in Utah, Idaho, and Wyoming
|
|
|
Amegy Corporation
|
Texas
|
|
|
California Bank & Trust
|
California
|
|
|
National Bank of Arizona
|
Federally chartered doing business in Arizona
|
|
|
Nevada State Bank
|
Nevada
|
|
|
Vectra Bank Colorado, National Association
|
Federally chartered doing business in Colorado and New Mexico
|
|
|
The Commerce Bank of Washington, National Association
|
Federally chartered doing business in Washington
|
|
|
The Commerce Bank of Oregon
|
Oregon
|
|
|
Cash Access, Inc.
|
Utah
|
|
|
Great Western Financial Corporation
|
Utah
|
|
|
PPS Data, LLC
|
Nevada
|
|
|
Stockmen’s (AZ) Statutory Trust II (not consolidated)
|
Connecticut
|
|
|
Stockmen’s (AZ) Statutory Trust III (not consolidated)
|
Connecticut
|
|
|
Welman Holdings, Inc.
|
Utah
|
|
|
Zions Insurance Agency, Inc.
|
Utah
|
|
|
Zions Management Services Company
|
Utah
|
|
|
ZMFU II, Inc.
|
Utah
|
(i)
|
Registration Statement (Form S-8 No. 333-36205) and related Prospectus pertaining to Zions Bancorporation Employee Investment Savings Plan, now known as the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan;
|
(ii)
|
Registration Statement (Form S-8 No. 333-124696) and related Prospectus pertaining to Zions Bancorporation 2005 Stock Option and Incentive Plan;
|
(iii)
|
Registration Statement (Form S-8 No. 333-130222) and related Prospectus pertaining to Amegy Bancorporation 1989 Stock Option Plan, Amegy Bancorporation 1993 Stock Option and Incentive Plan, Amegy Bancorporation Amended and Restated Non-Employee Directors Deferred Fee Plan, and Amegy Bancorporation 2004 Omnibus Incentive Plan; and
|
(iv)
|
Registration Statement (Form S-3 No. 333-195408) and related Prospectus pertaining to the offering of debt and equity securities of Zions Bancorporation;
|
1.
|
I have reviewed this annual report on Form 10-K 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 annual report on Form 10-K 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
|