ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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UTAH
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87-0227400
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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One South Main, 15
th
Floor
Salt Lake City, Utah
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84133
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Common Stock, without par value, outstanding at July 31, 2017
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202,172,188 shares
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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PART I.
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FINANCIAL INFORMATION
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ITEM 2.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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•
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statements with respect to the beliefs, plans, objectives, goals, targets, commitments, designs, 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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•
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statements preceded by, followed by, or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “target,” “commit,” “design,” “plan,” “projects,” or similar expressions.
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•
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the Company’s ability to successfully execute its business plans, manage its risks, and achieve its objectives, including its restructuring and efficiency initiatives;
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•
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changes in local, national and international political and economic conditions, including without limitation the political and economic effects of the 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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•
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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 oil and gas-related commodity prices;
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•
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changes in markets for equity, fixed income, commercial paper and other securities, including availability, market liquidity levels, and pricing, including the actual amount and duration of declines in the price of oil and gas;
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•
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any impairment of our goodwill or other intangibles, or any adjustment of valuation allowances on our deferred tax assets due to adverse changes in the economic environment, declining operations of the reporting unit, or a change to the corporate statutory tax rate or other similar changes if and as implemented by local and national governments, or other factors;
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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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•
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increases in the levels of losses, customer bankruptcies, bank failures, claims, and assessments;
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•
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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, the FDIC, the SEC, and the CFPB;
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•
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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 Basel III, and rules and regulations thereunder, on our required regulatory capital and liquidity levels, governmental assessments on us (including, but not limited to, the Federal Reserve reviews of our annual capital plan), 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;
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•
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success in gaining regulatory approvals, when required;
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•
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changes in consumer spending and savings habits;
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•
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increased competitive challenges and expanding product and pricing pressures among financial institutions;
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•
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inflation and deflation;
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•
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technological changes and the Company’s implementation of new technologies;
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•
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the Company’s ability to develop and maintain secure and reliable information technology systems;
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•
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legislation or regulatory changes which adversely affect the Company’s operations or business;
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•
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the Company’s ability to comply with applicable laws and regulations;
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•
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changes in accounting policies or procedures as may be required by the FASB or regulatory agencies; and
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•
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costs of deposit insurance and changes with respect to FDIC insurance coverage levels.
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ACL
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Allowance for Credit Losses
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ERM
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Enterprise Risk Management
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AFS
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Available-for-Sale
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ERMC
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Enterprise Risk Management Committee
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ALCO
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Asset/Liability Committee
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EVE
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Economic Value of Equity at Risk
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ALLL
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Allowance for Loan and Lease Losses
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FAMC
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Federal Agricultural Mortgage Corporation, or “Farmer Mac”
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Amegy
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Amegy Bank, a division of ZB, N.A.
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FASB
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Financial Accounting Standards Board
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AOCI
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Accumulated Other Comprehensive Income
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FDIC
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Federal Deposit Insurance Corporation
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ASC
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Accounting Standards Codification
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FDICIA
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Federal Deposit Insurance Corporation Improvement Act
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ASU
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Accounting Standards Update
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FHLB
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Federal Home Loan Bank
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BHC
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Bank Holding Company
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FHLMC
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Federal Home Loan Mortgage Corporation, or “Freddie Mac”
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bps
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basis points
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FRB
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Federal Reserve Board
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CB&T
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California Bank & Trust, a division of ZB, N.A.
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FTP
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Funds Transfer Pricing
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CCAR
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Comprehensive Capital Analysis and Review
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GAAP
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Generally Accepted Accounting Principles
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CET1
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Common Equity Tier 1 (Basel III)
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GNMA
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Government National Mortgage Association, or “Ginnie Mae”
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CFPB
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Consumer Financial Protection Bureau
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HCR
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Horizontal Capital Review
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CLTV
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Combined Loan-to-Value Ratio
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HCR
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Horizontal Capital Review
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COSO
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Committee of Sponsoring Organizations of the Treadway Commission
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HECL
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Home Equity Credit Line
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CRE
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Commercial Real Estate
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HQLA
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High-Quality Liquid Assets
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DFAST
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Dodd-Frank Act Stress Test
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HTM
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Held-to-Maturity
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Dodd-Frank Act
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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IFRS
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International Financial Reporting Standards
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DTA
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Deferred Tax Asset
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LCR
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Liquidity Coverage Ratio
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EITF
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Emerging Issues Task Force
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LIBOR
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London Interbank Offered Rate
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NBAZ
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National Bank of Arizona, a division of ZB, N.A.
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RULC
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Reserve for Unfunded Lending Commitments
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NIM
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Net Interest Margin
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S&P
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Standard and Poor's
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NM
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Not Meaningful
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SBA
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Small Business Administration
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NSB
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Nevada State Bank, a division of ZB, N.A.
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SBIC
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Small Business Investment Company
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NSFR
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Net Stable Funding Ratio
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SEC
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Securities and Exchange Commission
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OCC
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Office of the Comptroller of the Currency
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SNC
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Shared National Credit
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OCI
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Other Comprehensive Income
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TCBO
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The Commerce Bank of Oregon, a division of ZB, N.A.
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OREO
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Other Real Estate Owned
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TCBW
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The Commerce Bank of Washington, a division of ZB, N.A.
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OTTI
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Other-Than-Temporary Impairment
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TDR
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Troubled Debt Restructuring
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Parent
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Zions Bancorporation
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Vectra
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Vectra Bank Colorado, a division of ZB, N.A.
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PCI
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Purchased Credit-Impaired
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ZB, N.A.
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ZB, National Association
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PEI
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Private Equity Investment
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Zions Bank
|
Zions Bank, a division of ZB, N.A.
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PPNR
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Pre-provision Net Revenue
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ZMSC
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Zions Management Services Company
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ROC
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Risk Oversight Committee
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Three Months Ended
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||||||||||||||
(Dollar amounts in millions)
|
|
June 30,
2017 |
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March 31,
2017 |
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December 31,
2016 |
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June 30,
2016 |
||||||||
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Net earnings applicable to common shareholders (GAAP)
|
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$
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154
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$
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129
|
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$
|
125
|
|
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$
|
91
|
|
Adjustment, net of tax:
|
|
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Amortization of core deposit and other intangibles
|
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1
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1
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1
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1
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Net earnings applicable to common shareholders, excluding the effects of the adjustment, net of tax (non-GAAP)
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(a)
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$
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155
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|
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$
|
130
|
|
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$
|
126
|
|
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$
|
92
|
|
Average common equity (GAAP)
|
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$
|
7,143
|
|
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$
|
6,996
|
|
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$
|
6,998
|
|
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$
|
6,883
|
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Average goodwill
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
||||
Average core deposit and other intangibles
|
|
(6
|
)
|
|
(8
|
)
|
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(10
|
)
|
|
(14
|
)
|
||||
Average tangible common equity (non-GAAP)
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(b)
|
$
|
6,123
|
|
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$
|
5,974
|
|
|
$
|
5,974
|
|
|
$
|
5,855
|
|
Number of days in quarter
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(c)
|
91
|
|
|
90
|
|
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92
|
|
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91
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Number of days in year
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(d)
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365
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365
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|
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366
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|
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366
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|
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Tangible return on average tangible common equity (non-GAAP)
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(a/b/c)*d
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10.2
|
%
|
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8.8
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%
|
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8.4
|
%
|
|
6.3
|
%
|
(Dollar amounts in millions, except per share amounts)
|
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
June 30,
2016 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total shareholders’ equity (GAAP)
|
|
$
|
7,749
|
|
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$
|
7,730
|
|
|
$
|
7,634
|
|
|
$
|
7,626
|
|
Goodwill
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
||||
Core deposit and other intangibles
|
|
(5
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|
(12
|
)
|
||||
Tangible equity (non-GAAP)
|
(a)
|
6,730
|
|
|
6,709
|
|
|
6,612
|
|
|
6,600
|
|
||||
Preferred stock
|
|
(566
|
)
|
|
(710
|
)
|
|
(710
|
)
|
|
(710
|
)
|
||||
Tangible common equity (non-GAAP)
|
(b)
|
$
|
6,164
|
|
|
$
|
5,999
|
|
|
$
|
5,902
|
|
|
$
|
5,890
|
|
Total assets (GAAP)
|
|
$
|
65,446
|
|
|
$
|
65,463
|
|
|
$
|
63,239
|
|
|
$
|
59,643
|
|
Goodwill
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
|
(1,014
|
)
|
||||
Core deposit and other intangibles
|
|
(5
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|
(12
|
)
|
||||
Tangible assets (non-GAAP)
|
(c)
|
$
|
64,427
|
|
|
$
|
64,442
|
|
|
$
|
62,217
|
|
|
$
|
58,617
|
|
Common shares outstanding (thousands)
|
(d)
|
202,131
|
|
|
202,595
|
|
|
203,085
|
|
|
205,104
|
|
||||
Tangible equity ratio (non-GAAP)
|
(a/c)
|
10.45
|
%
|
|
10.41
|
%
|
|
10.63
|
%
|
|
11.26
|
%
|
||||
Tangible common equity ratio (non-GAAP)
|
(b/c)
|
9.57
|
%
|
|
9.31
|
%
|
|
9.49
|
%
|
|
10.05
|
%
|
||||
Tangible book value per common share (non-GAAP)
|
(b/d)
|
$
|
30.50
|
|
|
$
|
29.61
|
|
|
$
|
29.06
|
|
|
$
|
28.72
|
|
(Dollar amounts in millions)
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year Ended
|
||||||||||||||||||
|
June 30,
2017 |
|
March 31,
2017 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
|
December 31,
2016 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninterest expense (GAAP)
|
(a)
|
$
|
405
|
|
|
$
|
414
|
|
|
$
|
382
|
|
|
$
|
819
|
|
|
$
|
777
|
|
|
$
|
1,585
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
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Severance costs
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
4
|
|
|
5
|
|
||||||
Other real estate expense, net
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Provision for unfunded lending commitments
|
|
3
|
|
|
(5
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
(10
|
)
|
||||||
Debt extinguishment cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of core deposit and other intangibles
|
|
2
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
8
|
|
||||||
Restructuring costs
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
5
|
|
||||||
Total adjustments
|
(b)
|
6
|
|
|
3
|
|
|
(3
|
)
|
|
8
|
|
|
(3
|
)
|
|
6
|
|
||||||
Adjusted noninterest expense (non-GAAP)
|
(a-b)=(c)
|
$
|
399
|
|
|
$
|
411
|
|
|
$
|
385
|
|
|
$
|
811
|
|
|
$
|
780
|
|
|
$
|
1,579
|
|
Net interest income (GAAP)
|
(d)
|
$
|
528
|
|
|
$
|
489
|
|
|
$
|
465
|
|
|
$
|
1,017
|
|
|
$
|
918
|
|
|
$
|
1,867
|
|
Fully taxable-equivalent adjustments
|
|
9
|
|
|
8
|
|
|
6
|
|
|
17
|
|
|
11
|
|
|
26
|
|
||||||
Taxable-equivalent net interest income (non-GAAP)
1
|
(d+e)=f
|
537
|
|
|
497
|
|
|
471
|
|
|
1,034
|
|
|
929
|
|
|
1,893
|
|
||||||
Noninterest income (GAAP)
|
g
|
132
|
|
|
132
|
|
|
126
|
|
|
264
|
|
|
242
|
|
|
515
|
|
||||||
Combined income (non-GAAP)
|
(f+g)=(h)
|
669
|
|
|
629
|
|
|
597
|
|
|
1,298
|
|
|
1,171
|
|
|
2,408
|
|
||||||
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value and nonhedge derivative loss
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
2
|
|
||||||
Securities gains, net
|
|
2
|
|
|
5
|
|
|
3
|
|
|
7
|
|
|
2
|
|
|
7
|
|
||||||
Total adjustments
|
(i)
|
2
|
|
|
5
|
|
|
1
|
|
|
6
|
|
|
(2
|
)
|
|
9
|
|
||||||
Adjusted taxable-equivalent revenue (non-GAAP)
|
(h-i)=(j)
|
$
|
667
|
|
|
$
|
624
|
|
|
$
|
596
|
|
|
$
|
1,292
|
|
|
$
|
1,173
|
|
|
$
|
2,399
|
|
Pre-provision net revenue
|
(h)-(a)
|
$
|
264
|
|
|
$
|
215
|
|
|
$
|
215
|
|
|
$
|
479
|
|
|
$
|
394
|
|
|
$
|
823
|
|
Adjusted PPNR (non-GAAP)
|
(j-c)
|
268
|
|
|
213
|
|
|
211
|
|
|
481
|
|
|
393
|
|
|
820
|
|
||||||
Efficiency ratio (non-GAAP)
|
(c/j)
|
59.8
|
%
|
|
65.9
|
%
|
|
64.6
|
%
|
|
62.8
|
%
|
|
66.5
|
%
|
|
65.8
|
%
|
•
|
Achieve an efficiency ratio in the low 60s for fiscal year 2017.
In 2016, our efficiency ratio was 65.8%, which met our goal to keep the efficiency ratio under 66% for the year. Our efficiency ratio for the second quarter of
|
•
|
Maintain adjusted noninterest expense at less than $1.58 billion in 2016, with a modest increase in 2017.
We met our target for fiscal year 2016, keeping adjusted noninterest expense to $1.579 billion. Through June 30, 2017, adjusted noninterest expense was
$811 million
, which includes expenses that are seasonally higher in the first half of the year and, when annualized, is consistent with our goal to limit adjusted noninterest expense growth to 2-3% in 2017.
|
|
Three Months Ended
June 30, 2017 |
|
Three Months Ended
June 30, 2016 |
||||||||||||||||||
(Dollar amounts in millions)
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
yield/rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
yield/rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
$
|
1,572
|
|
|
$
|
5
|
|
|
1.20
|
%
|
|
$
|
4,045
|
|
|
$
|
6
|
|
|
0.55
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
788
|
|
|
8
|
|
|
3.97
|
|
|
669
|
|
|
7
|
|
|
4.46
|
|
||||
Available-for-sale
|
15,386
|
|
|
81
|
|
|
2.11
|
|
|
8,853
|
|
|
43
|
|
|
1.93
|
|
||||
Trading account
|
79
|
|
|
1
|
|
|
3.43
|
|
|
78
|
|
|
1
|
|
|
3.88
|
|
||||
Total securities
2
|
16,253
|
|
|
90
|
|
|
2.20
|
|
|
9,600
|
|
|
51
|
|
|
2.13
|
|
||||
Loans held for sale
|
100
|
|
|
1
|
|
|
3.23
|
|
|
126
|
|
|
1
|
|
|
3.52
|
|
||||
Loans and leases
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
21,885
|
|
|
242
|
|
|
4.44
|
|
|
21,934
|
|
|
229
|
|
|
4.20
|
|
||||
Commercial real estate
|
11,236
|
|
|
133
|
|
|
4.74
|
|
|
11,169
|
|
|
119
|
|
|
4.31
|
|
||||
Consumer
|
10,122
|
|
|
97
|
|
|
3.83
|
|
|
9,005
|
|
|
87
|
|
|
3.88
|
|
||||
Total loans and leases
|
43,243
|
|
|
472
|
|
|
4.38
|
|
|
42,108
|
|
|
435
|
|
|
4.16
|
|
||||
Total interest-earning assets
|
61,168
|
|
|
568
|
|
|
3.72
|
|
|
55,879
|
|
|
493
|
|
|
3.55
|
|
||||
Cash and due from banks
|
795
|
|
|
|
|
|
|
521
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(546
|
)
|
|
|
|
|
|
(606
|
)
|
|
|
|
|
||||||||
Goodwill
|
1,014
|
|
|
|
|
|
|
1,014
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
6
|
|
|
|
|
|
|
14
|
|
|
|
|
|
||||||||
Other assets
|
2,974
|
|
|
|
|
|
|
2,724
|
|
|
|
|
|
||||||||
Total assets
|
$
|
65,411
|
|
|
|
|
|
|
$
|
59,546
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
$
|
25,467
|
|
|
$
|
9
|
|
|
0.14
|
%
|
|
$
|
25,780
|
|
|
$
|
9
|
|
|
0.14
|
%
|
Time
|
3,048
|
|
|
5
|
|
|
0.66
|
|
|
2,192
|
|
|
3
|
|
|
0.46
|
|
||||
Foreign
|
—
|
|
|
—
|
|
|
|
|
|
139
|
|
|
—
|
|
|
0.28
|
|
||||
Total interest-bearing deposits
|
28,515
|
|
|
14
|
|
|
0.20
|
|
|
28,111
|
|
|
12
|
|
|
0.17
|
|
||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds and other short-term borrowings
|
4,302
|
|
|
10
|
|
|
0.94
|
|
|
547
|
|
|
—
|
|
|
0.24
|
|
||||
Long-term debt
|
383
|
|
|
6
|
|
|
5.77
|
|
|
790
|
|
|
10
|
|
|
5.05
|
|
||||
Total borrowed funds
|
4,685
|
|
|
16
|
|
|
1.34
|
|
|
1,337
|
|
|
10
|
|
|
3.08
|
|
||||
Total interest-bearing liabilities
|
33,200
|
|
|
30
|
|
|
0.36
|
|
|
29,448
|
|
|
22
|
|
|
0.30
|
|
||||
Noninterest-bearing deposits
|
23,819
|
|
|
|
|
|
|
21,839
|
|
|
|
|
|
||||||||
Other liabilities
|
565
|
|
|
|
|
|
|
597
|
|
|
|
|
|
||||||||
Total liabilities
|
57,584
|
|
|
|
|
|
|
51,884
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
684
|
|
|
|
|
|
|
779
|
|
|
|
|
|
||||||||
Common equity
|
7,143
|
|
|
|
|
|
|
6,883
|
|
|
|
|
|
||||||||
Total shareholders’ equity
|
7,827
|
|
|
|
|
|
|
7,662
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
65,411
|
|
|
|
|
|
|
$
|
59,546
|
|
|
|
|
|
||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.36
|
%
|
|
|
|
|
|
3.25
|
%
|
||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
537
|
|
|
3.52
|
%
|
|
|
|
$
|
471
|
|
|
3.39
|
%
|
1
|
Taxable-equivalent rates used where applicable.
|
2
|
Quarter-to-date interest on total securities includes
$35 million
and
$25 million
of premium amortization, as of
June 30, 2017
and
June 30, 2016
, respectively.
|
3
|
Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
|
|
Six Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||
(Dollar amounts in millions)
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
yield/rate
|
|
Average
balance
|
|
Amount of
interest
1
|
|
Average
yield/rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market investments
|
$
|
1,777
|
|
|
$
|
9
|
|
|
1.05
|
%
|
|
$
|
4,584
|
|
|
$
|
13
|
|
|
0.55
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
817
|
|
|
16
|
|
|
3.93
|
|
|
616
|
|
|
14
|
|
|
4.65
|
|
||||
Available-for-sale
|
14,709
|
|
|
155
|
|
|
2.12
|
|
|
8,480
|
|
|
85
|
|
|
2.02
|
|
||||
Trading account
|
70
|
|
|
1
|
|
|
3.57
|
|
|
66
|
|
|
1
|
|
|
3.75
|
|
||||
Total securities
2
|
15,596
|
|
|
172
|
|
|
2.22
|
|
|
9,162
|
|
|
100
|
|
|
2.21
|
|
||||
Loans held for sale
|
116
|
|
|
2
|
|
|
3.23
|
|
|
133
|
|
|
2
|
|
|
3.75
|
|
||||
Loans and leases
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
21,747
|
|
|
467
|
|
|
4.33
|
|
|
21,779
|
|
|
455
|
|
|
4.20
|
|
||||
Commercial real estate
|
11,238
|
|
|
251
|
|
|
4.50
|
|
|
10,863
|
|
|
231
|
|
|
4.27
|
|
||||
Consumer
|
9,921
|
|
|
189
|
|
|
3.83
|
|
|
8,914
|
|
|
172
|
|
|
3.89
|
|
||||
Total loans and leases
|
42,906
|
|
|
907
|
|
|
4.26
|
|
|
41,556
|
|
|
858
|
|
|
4.15
|
|
||||
Total interest-earning assets
|
60,395
|
|
|
1,090
|
|
|
3.64
|
|
|
55,435
|
|
|
973
|
|
|
3.53
|
|
||||
Cash and due from banks
|
884
|
|
|
|
|
|
|
624
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(556
|
)
|
|
|
|
|
|
(603
|
)
|
|
|
|
|
||||||||
Goodwill
|
1,014
|
|
|
|
|
|
|
1,014
|
|
|
|
|
|
||||||||
Core deposit and other intangibles
|
7
|
|
|
|
|
|
|
14
|
|
|
|
|
|
||||||||
Other assets
|
2,963
|
|
|
|
|
|
|
2,702
|
|
|
|
|
|
||||||||
Total assets
|
$
|
64,707
|
|
|
|
|
|
|
$
|
59,186
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
$
|
25,680
|
|
|
$
|
19
|
|
|
0.14
|
%
|
|
$
|
25,565
|
|
|
$
|
19
|
|
|
0.15
|
%
|
Time
|
2,953
|
|
|
9
|
|
|
0.63
|
|
|
2,140
|
|
|
5
|
|
|
0.45
|
|
||||
Foreign
|
—
|
|
|
—
|
|
|
—
|
|
|
187
|
|
|
—
|
|
|
0.27
|
|
||||
Total interest-bearing deposits
|
28,633
|
|
|
28
|
|
|
0.19
|
|
|
27,892
|
|
|
24
|
|
|
0.17
|
|
||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds and other short-term borrowings
|
3,617
|
|
|
15
|
|
|
0.85
|
|
|
407
|
|
|
—
|
|
|
0.22
|
|
||||
Long-term debt
|
451
|
|
|
13
|
|
|
5.85
|
|
|
800
|
|
|
20
|
|
|
5.03
|
|
||||
Total borrowed funds
|
4,068
|
|
|
28
|
|
|
1.40
|
|
|
1,207
|
|
|
20
|
|
|
3.41
|
|
||||
Total interest-bearing liabilities
|
32,701
|
|
|
56
|
|
|
0.34
|
|
|
29,099
|
|
|
44
|
|
|
0.31
|
|
||||
Noninterest-bearing deposits
|
23,641
|
|
|
|
|
|
|
21,860
|
|
|
|
|
|
||||||||
Other liabilities
|
598
|
|
|
|
|
|
|
588
|
|
|
|
|
|
||||||||
Total liabilities
|
56,940
|
|
|
|
|
|
|
51,547
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
697
|
|
|
|
|
|
|
804
|
|
|
|
|
|
||||||||
Common equity
|
7,070
|
|
|
|
|
|
|
6,835
|
|
|
|
|
|
||||||||
Total shareholders’ equity
|
7,767
|
|
|
|
|
|
|
7,639
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
64,707
|
|
|
|
|
|
|
$
|
59,186
|
|
|
|
|
|
||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.30
|
%
|
|
|
|
|
|
3.22
|
%
|
||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
1,034
|
|
|
3.45
|
%
|
|
|
|
$
|
929
|
|
|
3.37
|
%
|
1
|
Taxable-equivalent rates used where applicable.
|
2
|
Year-to-date interest on total securities includes
$66 million
and
$44 million
of premium amortization, as of
June 30, 2017
and
June 30, 2016
, respectively.
|
3
|
Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
|
|
Three Months Ended
June 30, |
|
Percent
change
|
|
Six Months Ended
June 30, |
|
Percent
change
|
||||||||||||||
(Dollar amounts in millions)
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges and fees on deposit accounts
|
$
|
43
|
|
|
$
|
42
|
|
|
2.4
|
%
|
|
$
|
85
|
|
|
$
|
83
|
|
|
2.4
|
%
|
Other service charges, commissions and fees
|
56
|
|
|
52
|
|
|
7.7
|
|
|
105
|
|
|
101
|
|
|
4.0
|
|
||||
Wealth management income
|
10
|
|
|
9
|
|
|
11.1
|
|
|
20
|
|
|
17
|
|
|
17.6
|
|
||||
Loan sales and servicing income
|
6
|
|
|
10
|
|
|
(40.0
|
)
|
|
13
|
|
|
18
|
|
|
(27.8
|
)
|
||||
Capital markets and foreign exchange
|
6
|
|
|
5
|
|
|
20.0
|
|
|
13
|
|
|
11
|
|
|
18.2
|
|
||||
Customer-related fees
|
121
|
|
|
118
|
|
|
2.5
|
|
|
236
|
|
|
230
|
|
|
2.6
|
|
||||
Dividends and other investment income
|
10
|
|
|
6
|
|
|
66.7
|
|
|
22
|
|
|
11
|
|
|
100.0
|
|
||||
Securities gains, net
|
2
|
|
|
3
|
|
|
(33.3
|
)
|
|
7
|
|
|
2
|
|
|
250.0
|
|
||||
Other
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
||||
Total noninterest income
|
$
|
132
|
|
|
$
|
126
|
|
|
4.8
|
|
|
$
|
264
|
|
|
$
|
242
|
|
|
9.1
|
|
|
Three Months Ended
June 30, |
|
Percent
change
|
|
Six Months Ended
June 30, |
|
Percent
change
|
||||||||||||||
(Dollar amounts in millions)
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits
|
$
|
242
|
|
|
$
|
241
|
|
|
0.4
|
%
|
|
$
|
503
|
|
|
$
|
500
|
|
|
0.6
|
%
|
Occupancy, net
|
32
|
|
|
30
|
|
|
6.7
|
|
|
66
|
|
|
59
|
|
|
11.9
|
|
||||
Furniture, equipment and software, net
|
32
|
|
|
31
|
|
|
3.2
|
|
|
64
|
|
|
62
|
|
|
3.2
|
|
||||
Other real estate expense, net
|
—
|
|
|
(1
|
)
|
|
NM
|
|
|
—
|
|
|
(2
|
)
|
|
NM
|
|
||||
Credit-related expense
|
8
|
|
|
6
|
|
|
33.3
|
|
|
16
|
|
|
12
|
|
|
33.3
|
|
||||
Provision for unfunded lending commitments
|
3
|
|
|
(4
|
)
|
|
NM
|
|
|
(2
|
)
|
|
(10
|
)
|
|
(80.0
|
)
|
||||
Professional and legal services
|
13
|
|
|
12
|
|
|
8.3
|
|
|
27
|
|
|
24
|
|
|
12.5
|
|
||||
Advertising
|
6
|
|
|
5
|
|
|
20.0
|
|
|
11
|
|
|
11
|
|
|
—
|
|
||||
FDIC premiums
|
13
|
|
|
10
|
|
|
30.0
|
|
|
25
|
|
|
17
|
|
|
47.1
|
|
||||
Amortization of core deposit and other intangibles
|
2
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
||||
Other
|
54
|
|
|
50
|
|
|
8.0
|
|
|
105
|
|
|
100
|
|
|
5.0
|
|
||||
Total noninterest expense
|
$
|
405
|
|
|
$
|
382
|
|
|
6.0
|
|
|
$
|
819
|
|
|
$
|
777
|
|
|
5.4
|
|
Adjusted noninterest expense
1
|
$
|
399
|
|
|
$
|
385
|
|
|
3.6
|
|
|
$
|
811
|
|
|
$
|
780
|
|
|
4.0
|
|
•
|
We reevaluated our state tax positions in the first quarter of 2017, which resulted in a one-time $14 million tax benefit.
|
•
|
We reduced expense by $4 million in the second quarter of 2017 due to changes in the carrying value of various state deferred tax items.
|
•
|
We recorded a $4 million benefit in the first quarter of 2017, and a $3 million benefit in the second quarter of 2017, from the implementation of new accounting guidance related to stock-based compensation.
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In millions)
|
Par value
|
|
Amortized
cost
|
|
Estimated
fair
value
|
|
Par value
|
|
Amortized
cost
|
|
Estimated
fair
value
|
||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
$
|
776
|
|
|
$
|
775
|
|
|
$
|
774
|
|
|
$
|
868
|
|
|
$
|
868
|
|
|
$
|
850
|
|
|
776
|
|
|
775
|
|
|
774
|
|
|
868
|
|
|
868
|
|
|
850
|
|
||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
25
|
|
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
1,829
|
|
|
1,828
|
|
|
1,827
|
|
|
1,847
|
|
|
1,846
|
|
|
1,839
|
|
||||||
Agency guaranteed mortgage-backed securities
|
9,546
|
|
|
9,772
|
|
|
9,721
|
|
|
7,745
|
|
|
7,986
|
|
|
7,883
|
|
||||||
Small Business Administration loan-backed securities
|
2,125
|
|
|
2,361
|
|
|
2,371
|
|
|
2,066
|
|
|
2,298
|
|
|
2,288
|
|
||||||
Municipal securities
|
1,160
|
|
|
1,306
|
|
|
1,317
|
|
|
1,048
|
|
|
1,182
|
|
|
1,154
|
|
||||||
Other debt securities
|
25
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
24
|
|
||||||
|
14,710
|
|
|
15,317
|
|
|
15,286
|
|
|
12,731
|
|
|
13,337
|
|
|
13,188
|
|
||||||
Money market mutual funds and other
|
55
|
|
|
55
|
|
|
55
|
|
|
184
|
|
|
184
|
|
|
184
|
|
||||||
|
14,765
|
|
|
15,372
|
|
|
15,341
|
|
|
12,915
|
|
|
13,521
|
|
|
13,372
|
|
||||||
Total
|
$
|
15,541
|
|
|
$
|
16,147
|
|
|
$
|
16,115
|
|
|
$
|
13,783
|
|
|
$
|
14,389
|
|
|
$
|
14,222
|
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Loans and leases
|
$
|
871
|
|
|
$
|
778
|
|
Held-to-maturity – municipal securities
|
775
|
|
|
868
|
|
||
Available-for-sale – municipal securities
|
1,317
|
|
|
1,154
|
|
||
Trading account – municipal securities
|
56
|
|
|
112
|
|
||
Unfunded lending commitments
|
165
|
|
|
182
|
|
||
Total direct exposure to municipalities
|
$
|
3,184
|
|
|
$
|
3,094
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
(Dollar amounts in millions)
|
Amount
|
|
% of
total loans
|
|
Amount
|
|
% of
total loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
13,850
|
|
|
31.7
|
%
|
|
$
|
13,452
|
|
|
31.5
|
%
|
Leasing
|
387
|
|
|
0.9
|
|
|
423
|
|
|
1.0
|
|
||
Owner-occupied
|
7,095
|
|
|
16.2
|
|
|
6,962
|
|
|
16.3
|
|
||
Municipal
|
871
|
|
|
2.0
|
|
|
778
|
|
|
1.8
|
|
||
Total commercial
|
22,203
|
|
|
50.8
|
|
|
21,615
|
|
|
50.6
|
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
2,186
|
|
|
5.0
|
|
|
2,019
|
|
|
4.7
|
|
||
Term
|
9,012
|
|
|
20.6
|
|
|
9,322
|
|
|
21.9
|
|
||
Total commercial real estate
|
11,198
|
|
|
25.6
|
|
|
11,341
|
|
|
26.6
|
|
||
Consumer:
|
|
|
|
|
|
|
|
||||||
Home equity credit line
|
2,697
|
|
|
6.2
|
|
|
2,645
|
|
|
6.2
|
|
||
1-4 family residential
|
6,359
|
|
|
14.6
|
|
|
5,891
|
|
|
13.8
|
|
||
Construction and other consumer real estate
|
560
|
|
|
1.3
|
|
|
486
|
|
|
1.2
|
|
||
Bankcard and other revolving plans
|
478
|
|
|
1.1
|
|
|
481
|
|
|
1.1
|
|
||
Other
|
188
|
|
|
0.4
|
|
|
190
|
|
|
0.5
|
|
||
Total consumer
|
10,282
|
|
|
23.6
|
|
|
9,693
|
|
|
22.8
|
|
||
Total net loans
|
$
|
43,683
|
|
|
100.0
|
%
|
|
$
|
42,649
|
|
|
100.0
|
%
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Bank-owned life insurance
|
$
|
502
|
|
|
$
|
497
|
|
Federal Home Loan Bank stock
|
146
|
|
|
30
|
|
||
Federal Reserve stock
|
184
|
|
|
181
|
|
||
Farmer Mac stock
|
40
|
|
|
34
|
|
||
SBIC investments
|
125
|
|
|
124
|
|
||
Non-SBIC investment funds
|
12
|
|
|
15
|
|
||
Other
|
3
|
|
|
3
|
|
||
|
$
|
1,012
|
|
|
$
|
884
|
|
(Dollar amounts in millions)
|
June 30, 2017
|
|
Percent
guaranteed |
|
December 31, 2016
|
|
Percent
guaranteed |
||||||
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
509
|
|
|
75
|
%
|
|
$
|
519
|
|
|
75
|
%
|
Commercial real estate
|
15
|
|
|
76
|
|
|
18
|
|
|
75
|
|
||
Consumer
|
17
|
|
|
92
|
|
|
17
|
|
|
92
|
|
||
Total loans
|
$
|
541
|
|
|
76
|
|
|
$
|
554
|
|
|
76
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
(Dollar amounts in millions)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Real estate, rental and leasing
|
$
|
2,639
|
|
|
11.9
|
%
|
|
$
|
2,624
|
|
|
12.1
|
%
|
Retail trade
1
|
2,267
|
|
|
10.2
|
|
|
2,145
|
|
|
9.9
|
|
||
Manufacturing
|
2,148
|
|
|
9.7
|
|
|
2,161
|
|
|
10.0
|
|
||
Finance and insurance
|
1,673
|
|
|
7.5
|
|
|
1,462
|
|
|
6.8
|
|
||
Healthcare and social assistance
|
1,459
|
|
|
6.6
|
|
|
1,538
|
|
|
7.1
|
|
||
Wholesale trade
|
1,455
|
|
|
6.6
|
|
|
1,444
|
|
|
6.7
|
|
||
Transportation and warehousing
|
1,375
|
|
|
6.2
|
|
|
1,300
|
|
|
6.0
|
|
||
Mining, quarrying and oil and gas extraction
|
1,289
|
|
|
5.8
|
|
|
1,403
|
|
|
6.5
|
|
||
Construction
|
1,104
|
|
|
5.0
|
|
|
1,076
|
|
|
5.0
|
|
||
Other services (except Public Administration)
|
989
|
|
|
4.4
|
|
|
881
|
|
|
4.1
|
|
||
Accommodation and food services
|
979
|
|
|
4.4
|
|
|
925
|
|
|
4.3
|
|
||
Professional, scientific and technical services
|
874
|
|
|
3.9
|
|
|
875
|
|
|
4.0
|
|
||
Utilities
2
|
828
|
|
|
3.7
|
|
|
783
|
|
|
3.6
|
|
||
Other
3
|
3,124
|
|
|
14.1
|
|
|
2,998
|
|
|
13.9
|
|
||
Total
|
$
|
22,203
|
|
|
100.0
|
%
|
|
$
|
21,615
|
|
|
100.0
|
%
|
1
|
At
June 30, 2017
, 82% of retail trade consist of motor vehicle and parts dealers, gas stations, grocery stores, building material suppliers, and direct-to-consumer retailers. For additional detail on our CRE retail exposure, see the Commercial Real Estate Loans section on page
25
.
|
2
|
Includes primarily utilities, power, and renewable energy.
|
3
|
No other industry group exceeds 3.5%.
|
|
|
|
|
|
|
|
2Q17 - 4Q16
|
|
2Q17 - 2Q16
|
||||||||||||||||
(Dollar amounts in millions)
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2016 |
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Upstream – exploration and production
|
$
|
709
|
|
|
$
|
733
|
|
|
$
|
831
|
|
|
$
|
(24
|
)
|
|
(3
|
)%
|
|
$
|
(122
|
)
|
|
(15
|
)%
|
Midstream – marketing and transportation
|
622
|
|
|
598
|
|
|
658
|
|
|
24
|
|
|
4
|
|
|
(36
|
)
|
|
(5
|
)
|
|||||
Downstream – refining
|
103
|
|
|
137
|
|
|
131
|
|
|
(34
|
)
|
|
(25
|
)
|
|
(28
|
)
|
|
(21
|
)
|
|||||
Other non-services
|
37
|
|
|
38
|
|
|
45
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|
(18
|
)
|
|||||
Oilfield services
|
455
|
|
|
500
|
|
|
712
|
|
|
(45
|
)
|
|
(9
|
)
|
|
(257
|
)
|
|
(36
|
)
|
|||||
Oil and gas service manufacturing
|
136
|
|
|
152
|
|
|
193
|
|
|
(16
|
)
|
|
(11
|
)
|
|
(57
|
)
|
|
(30
|
)
|
|||||
Total loan and lease balances
2
|
2,062
|
|
|
2,158
|
|
|
2,570
|
|
|
(96
|
)
|
|
(4
|
)
|
|
(508
|
)
|
|
(20
|
)
|
|||||
Unfunded lending commitments
|
1,855
|
|
|
1,722
|
|
|
1,823
|
|
|
133
|
|
|
8
|
|
|
32
|
|
|
2
|
|
|||||
Total oil and gas credit exposure
|
$
|
3,917
|
|
|
$
|
3,880
|
|
|
$
|
4,393
|
|
|
$
|
37
|
|
|
1
|
|
|
$
|
(476
|
)
|
|
(11
|
)
|
Private equity investments
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
(3
|
)
|
|
(43
|
)
|
|
$
|
(2
|
)
|
|
(33
|
)
|
Credit quality measures
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Criticized loan ratio
|
33.1
|
%
|
|
37.8
|
%
|
|
37.8
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Classified loan ratio
|
27.2
|
%
|
|
31.6
|
%
|
|
31.5
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Nonaccrual loan ratio
|
12.1
|
%
|
|
13.6
|
%
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Ratio of nonaccrual loans that are current
|
84.7
|
%
|
|
86.1
|
%
|
|
89.2
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Net charge-off ratio, annualized
3
|
3.1
|
%
|
|
2.8
|
%
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
1
|
Because many borrowers operate in multiple businesses, judgment has been applied in characterizing a borrower as oil and gas-related, including a particular segment of oil and gas-related activity, e.g., upstream or downstream; typically, 50% of revenues coming from the oil and gas sector is used as a guide.
|
3
|
Calculated as the ratio of annualized net charge-offs to the beginning loan balances for each respective period.
|
(Dollar amounts in millions)
|
|
Collateral Location
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Loan type
|
|
As of
date
|
|
Arizona
|
|
California
|
|
Colorado
|
|
Nevada
|
|
Texas
|
|
Utah/
Idaho
|
|
Wash-ington
|
|
Other
1
|
|
Total
|
|
% of
total
CRE
|
|||||||||||||||||||
Commercial term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance outstanding
|
|
6/30/2017
|
|
$
|
1,094
|
|
|
$
|
2,978
|
|
|
$
|
406
|
|
|
$
|
608
|
|
|
$
|
1,680
|
|
|
$
|
1,346
|
|
|
$
|
346
|
|
|
$
|
554
|
|
|
$
|
9,012
|
|
|
80.5
|
%
|
% of loan type
|
|
|
|
12.4
|
%
|
|
33.0
|
%
|
|
4.5
|
%
|
|
6.7
|
%
|
|
18.6
|
%
|
|
14.9
|
%
|
|
3.8
|
%
|
|
6.1
|
%
|
|
100.0
|
%
|
|
|
||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
30-89 days
|
|
6/30/2017
|
|
0.1
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
|
||||||||||
|
|
12/31/2016
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.7
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
|
||||||||||
≥ 90 days
|
|
6/30/2017
|
|
0.2
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
0.6
|
%
|
|
0.1
|
%
|
|
|
||||||||||
|
|
12/31/2016
|
|
0.2
|
%
|
|
0.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
1.0
|
%
|
|
0.2
|
%
|
|
|
||||||||||
Accruing loans past due 90 days or more
|
|
6/30/2017
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
|
|
12/31/2016
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
|
||||||||||
Nonaccrual loans
|
|
6/30/2017
|
|
$
|
7
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
37
|
|
|
|
|
|
|
12/31/2016
|
|
8
|
|
|
11
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
29
|
|
|
|
||||||||||
Residential construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance outstanding
|
|
6/30/2017
|
|
$
|
23
|
|
|
$
|
321
|
|
|
$
|
37
|
|
|
$
|
6
|
|
|
$
|
259
|
|
|
$
|
29
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
683
|
|
|
6.1
|
%
|
% of loan type
|
|
|
|
3.4
|
%
|
|
47.0
|
%
|
|
5.4
|
%
|
|
0.9
|
%
|
|
37.9
|
%
|
|
4.2
|
%
|
|
0.9
|
%
|
|
0.3
|
%
|
|
100.0
|
%
|
|
|
||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
30-89 days
|
|
6/30/2017
|
|
1.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
|
||||||||||
|
|
12/31/2016
|
|
1.8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
|
||||||||||
≥ 90 days
|
|
6/30/2017
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
|
|
12/31/2016
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
Accruing loans past due 90 days or more
|
|
6/30/2017
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Nonaccrual loans
|
|
6/30/2017
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Commercial construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance outstanding
|
|
6/30/2017
|
|
$
|
140
|
|
|
$
|
284
|
|
|
$
|
113
|
|
|
$
|
96
|
|
|
$
|
504
|
|
|
$
|
232
|
|
|
$
|
52
|
|
|
$
|
82
|
|
|
$
|
1,503
|
|
|
13.4
|
%
|
% of loan type
|
|
|
|
9.3
|
%
|
|
18.9
|
%
|
|
7.5
|
%
|
|
6.4
|
%
|
|
33.6
|
%
|
|
15.4
|
%
|
|
3.4
|
%
|
|
5.5
|
%
|
|
100.0
|
%
|
|
|
||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
30-89 days
|
|
6/30/2017
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.9
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
|
||||||||||
|
|
12/31/2016
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.9
|
%
|
|
—
|
%
|
|
2.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.5
|
%
|
|
|
||||||||||
≥ 90 days
|
|
6/30/2017
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.2
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
|
||||||||||
|
|
12/31/2016
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
|
||||||||||
Accruing loans past due 90 days or more
|
|
6/30/2017
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Nonaccrual loans
|
|
6/30/2017
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
|
|
|
|
12/31/2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
|
||||||||||
Total construction and land development
|
|
6/30/2017
|
|
$
|
163
|
|
|
$
|
605
|
|
|
$
|
150
|
|
|
$
|
102
|
|
|
$
|
763
|
|
|
$
|
261
|
|
|
$
|
58
|
|
|
$
|
84
|
|
|
$
|
2,186
|
|
|
|
|
Total commercial real estate
|
|
6/30/2017
|
|
$
|
1,257
|
|
|
$
|
3,583
|
|
|
$
|
556
|
|
|
$
|
710
|
|
|
$
|
2,443
|
|
|
$
|
1,607
|
|
|
$
|
404
|
|
|
$
|
638
|
|
|
$
|
11,198
|
|
|
100.0
|
%
|
1
|
No other geography exceeds
$94 million
for all three loan types.
|
2
|
Delinquency rates include nonaccrual loans.
|
(In millions)
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
|
|
||||
Secured by first deeds of trust
|
$
|
1,375
|
|
|
$
|
1,383
|
|
Secured by second (or junior) liens
|
1,322
|
|
|
1,262
|
|
||
Total
|
$
|
2,697
|
|
|
$
|
2,645
|
|
(Dollar amounts in millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Nonaccrual loans
1
|
$
|
486
|
|
|
$
|
569
|
|
Other real estate owned
|
4
|
|
|
4
|
|
||
Total nonperforming assets
|
$
|
490
|
|
|
$
|
573
|
|
Ratio of nonperforming assets to net loans and leases
1
and other real estate owned
|
1.12
|
%
|
|
1.34
|
%
|
||
Accruing loans past due 90 days or more
|
$
|
19
|
|
|
$
|
36
|
|
Ratio of accruing loans past due 90 days or more to loans and leases
1
|
0.04
|
%
|
|
0.08
|
%
|
||
Nonaccrual loans and accruing loans past due 90 days or more
|
$
|
505
|
|
|
$
|
605
|
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans and leases
1
|
1.15
|
%
|
|
1.41
|
%
|
||
Accruing loans past due 30-89 days
|
$
|
98
|
|
|
$
|
126
|
|
Nonaccrual loans current as to principal and interest payments
|
68.7
|
%
|
|
74.1
|
%
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Restructured loans – accruing
|
$
|
167
|
|
|
$
|
151
|
|
Restructured loans – nonaccruing
|
137
|
|
|
100
|
|
||
Total
|
$
|
304
|
|
|
$
|
251
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
298
|
|
|
$
|
328
|
|
|
$
|
251
|
|
|
$
|
297
|
|
New identified TDRs and principal increases
|
70
|
|
|
39
|
|
|
156
|
|
|
102
|
|
||||
Payments and payoffs
|
(49
|
)
|
|
(41
|
)
|
|
(72
|
)
|
|
(72
|
)
|
||||
Charge-offs
|
(10
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
(5
|
)
|
||||
No longer reported as TDRs
|
(3
|
)
|
|
(7
|
)
|
|
(4
|
)
|
|
(7
|
)
|
||||
Sales and other
|
(2
|
)
|
|
(1
|
)
|
|
(14
|
)
|
|
—
|
|
||||
Balance at end of period
|
$
|
304
|
|
|
$
|
315
|
|
|
$
|
304
|
|
|
$
|
315
|
|
(Dollar amounts in millions)
|
Six Months Ended June 30, 2017
|
|
Twelve Months Ended December 31, 2016
|
|
Six Months Ended June 30, 2016
|
||||||
|
|
|
|
|
|
||||||
Loans and leases outstanding (net of unearned income)
|
$
|
43,683
|
|
|
$
|
42,649
|
|
|
$
|
42,501
|
|
Average loans and leases outstanding (net of unearned income)
|
$
|
42,906
|
|
|
$
|
42,062
|
|
|
$
|
41,555
|
|
Allowance for loan losses:
|
|
|
|
|
|
||||||
Balance at beginning of period
|
$
|
567
|
|
|
$
|
606
|
|
|
$
|
606
|
|
Provision charged to earnings
|
30
|
|
|
93
|
|
|
77
|
|
|||
Charge-offs:
|
|
|
|
|
|
||||||
Commercial
|
(82
|
)
|
|
(170
|
)
|
|
(90
|
)
|
|||
Commercial real estate
|
(2
|
)
|
|
(12
|
)
|
|
(9
|
)
|
|||
Consumer
|
(7
|
)
|
|
(16
|
)
|
|
(7
|
)
|
|||
Total
|
(91
|
)
|
|
(198
|
)
|
|
(106
|
)
|
|||
Recoveries:
|
|
|
|
|
|
||||||
Commercial
|
23
|
|
|
43
|
|
|
21
|
|
|||
Commercial real estate
|
11
|
|
|
14
|
|
|
5
|
|
|||
Consumer
|
4
|
|
|
9
|
|
|
5
|
|
|||
Total
|
38
|
|
|
66
|
|
|
31
|
|
|||
Net loan and lease charge-offs
|
(53
|
)
|
|
(132
|
)
|
|
(75
|
)
|
|||
Balance at end of period
|
$
|
544
|
|
|
$
|
567
|
|
|
$
|
608
|
|
Ratio of annualized net charge-offs to average loans and leases
|
0.25
|
%
|
|
0.31
|
%
|
|
0.36
|
%
|
|||
Ratio of allowance for loan losses to net loans and leases, at period end
|
1.25
|
%
|
|
1.33
|
%
|
|
1.43
|
%
|
|||
Ratio of allowance for loan losses to nonaccrual loans, at period end
|
115
|
%
|
|
107
|
%
|
|
114
|
%
|
|||
Ratio of allowance for loan losses to nonaccrual loans and accruing loans past due 90 days or more, at period end
|
110
|
%
|
|
100
|
%
|
|
108
|
%
|
Parallel change in interest rates
|
|
Trigger decline in EVE
|
|
Risk capacity decline in EVE
|
||
|
|
|
|
|
||
+/- 200 bps
|
|
8
|
%
|
|
10
|
%
|
|
|
June 30, 2017
|
||||
|
|
New Deposit Method
|
||||
Product
|
|
Effective duration (unchanged)
|
|
Effective duration (+200 bps)
|
||
|
|
|
|
|
||
Demand deposits
|
|
3.3
|
%
|
|
3.3
|
%
|
Money market
|
|
1.5
|
%
|
|
1.3
|
%
|
Savings and interest-on-checking
|
|
2.7
|
%
|
|
2.4
|
%
|
|
|
June 30, 2017
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+300
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
New Methodology
|
|
(3.9
|
)%
|
|
—
|
%
|
|
3.1
|
%
|
|
6.1
|
%
|
|
8.9
|
%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
|
|
December 31, 2016
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+300
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
New Methodology
|
|
(4.9
|
)%
|
|
—
|
%
|
|
3.6
|
%
|
|
7.6
|
%
|
|
11.5
|
%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
|
|
December 31, 2016
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100 bps
|
|
0 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
New Methodology
|
|
0.3
|
%
|
|
—
|
%
|
|
1.2
|
%
|
|
2.9
|
%
|
|
4.9
|
%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
PARENT ONLY CONDENSED BALANCE SHEETS
|
|||||||||||
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2016 |
||||||
ASSETS
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Interest-bearing deposits
|
351
|
|
|
529
|
|
|
562
|
|
|||
Investment securities:
|
|
|
|
|
|
||||||
Available-for-sale, at fair value
|
37
|
|
|
40
|
|
|
42
|
|
|||
Other noninterest-bearing investments
|
34
|
|
|
29
|
|
|
29
|
|
|||
Investments in subsidiaries:
|
|
|
|
|
|
||||||
Commercial bank
|
7,688
|
|
|
7,570
|
|
|
7,572
|
|
|||
Other subsidiaries
|
6
|
|
|
6
|
|
|
80
|
|
|||
Other assets
|
73
|
|
|
81
|
|
|
162
|
|
|||
|
$
|
8,189
|
|
|
$
|
8,257
|
|
|
$
|
8,449
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Other liabilities
|
$
|
58
|
|
|
$
|
89
|
|
|
$
|
125
|
|
Subordinated debt to affiliated trusts
|
—
|
|
|
—
|
|
|
165
|
|
|||
Long-term debt:
|
|
|
|
|
|
||||||
Due to others
|
382
|
|
|
534
|
|
|
533
|
|
|||
Total liabilities
|
440
|
|
|
623
|
|
|
823
|
|
|||
Shareholders’ equity:
|
|
|
|
|
|
||||||
Preferred stock
|
566
|
|
|
710
|
|
|
709
|
|
|||
Common stock
|
4,660
|
|
|
4,725
|
|
|
4,783
|
|
|||
Retained earnings
|
2,572
|
|
|
2,321
|
|
|
2,110
|
|
|||
Accumulated other comprehensive income (loss)
|
(49
|
)
|
|
(122
|
)
|
|
24
|
|
|||
Total shareholders’ equity
|
7,749
|
|
|
7,634
|
|
|
7,626
|
|
|||
|
$
|
8,189
|
|
|
$
|
8,257
|
|
|
$
|
8,449
|
|
•
|
Increasing the quarterly common dividend to $0.24 per share by the second quarter of 2018 following the path of:
|
◦
|
$0.12 per share in the third quarter of 2017
|
◦
|
$0.16 per share in the fourth quarter of 2017
|
◦
|
$0.20 per share in the first quarter of 2018
|
◦
|
$0.24 per share in the second quarter of 2018
|
Assumed Zions Bancorporation Common Stock Market Price
|
|
Diluted Shares (000s)
|
|||
|
|
|
|||
$
|
35.00
|
|
|
0
|
|
40.00
|
|
|
4,454
|
||
45.00
|
|
|
7,941
|
|
|
50.00
|
|
|
10,730
|
||
55.00
|
|
|
13,013
|
|
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2016 |
|||
|
|
|
|
|
|
|||
Tangible common equity ratio
1
|
9.57
|
%
|
|
9.49
|
%
|
|
10.05
|
%
|
Tangible equity ratio
1
|
10.45
|
%
|
|
10.63
|
%
|
|
11.26
|
%
|
Average equity to average assets (three months ended)
|
11.97
|
%
|
|
12.48
|
%
|
|
12.87
|
%
|
Basel III risk-based capital ratios
2
:
|
|
|
|
|
|
|||
Common equity tier 1 capital
|
12.29
|
%
|
|
12.07
|
%
|
|
11.98
|
%
|
Tier 1 leverage
|
10.53
|
%
|
|
11.09
|
%
|
|
11.25
|
%
|
Tier 1 risk-based
|
13.41
|
%
|
|
13.49
|
%
|
|
13.42
|
%
|
Total risk-based
|
15.10
|
%
|
|
15.24
|
%
|
|
15.50
|
%
|
Return on average common equity (three months ended)
|
8.65
|
%
|
|
7.11
|
%
|
|
5.32
|
%
|
Tangible return on average tangible common equity (three months ended)
1
|
10.2
|
%
|
|
8.4
|
%
|
|
6.3
|
%
|
1
|
See “GAAP to Non-GAAP Reconciliations” on page
5
for more information regarding these ratios.
|
2
|
Based on the applicable phase-in periods.
|
ITEM 1.
|
FINANCIAL STATEMENTS
(Unaudited)
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|||||||
(In millions, shares in thousands)
|
June 30,
2017 |
|
December 31,
2016 |
||||
(Unaudited)
|
|
|
|||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
481
|
|
|
$
|
737
|
|
Money market investments:
|
|
|
|
||||
Interest-bearing deposits
|
1,167
|
|
|
1,411
|
|
||
Federal funds sold and security resell agreements
|
427
|
|
|
568
|
|
||
Investment securities:
|
|
|
|
||||
Held-to-maturity, at amortized cost (approximate fair value $774 and $850)
|
775
|
|
|
868
|
|
||
Available-for-sale, at fair value
|
15,341
|
|
|
13,372
|
|
||
Trading account, at fair value
|
61
|
|
|
115
|
|
||
|
16,177
|
|
|
14,355
|
|
||
Loans held for sale
|
53
|
|
|
172
|
|
||
Loans and leases, net of unearned income and fees
|
43,683
|
|
|
42,649
|
|
||
Less allowance for loan losses
|
544
|
|
|
567
|
|
||
Loans held for investment, net of allowance
|
43,139
|
|
|
42,082
|
|
||
Other noninterest-bearing investments
|
1,012
|
|
|
884
|
|
||
Premises, equipment and software, net
|
1,069
|
|
|
1,020
|
|
||
Goodwill
|
1,014
|
|
|
1,014
|
|
||
Core deposit and other intangibles
|
5
|
|
|
8
|
|
||
Other real estate owned
|
4
|
|
|
4
|
|
||
Other assets
|
898
|
|
|
984
|
|
||
|
$
|
65,446
|
|
|
$
|
63,239
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
24,172
|
|
|
$
|
24,115
|
|
Interest-bearing:
|
|
|
|
||||
Savings and money market
|
25,165
|
|
|
26,364
|
|
||
Time
|
3,041
|
|
|
2,757
|
|
||
|
52,378
|
|
|
53,236
|
|
||
Federal funds and other short-term borrowings
|
4,342
|
|
|
827
|
|
||
Long-term debt
|
383
|
|
|
535
|
|
||
Reserve for unfunded lending commitments
|
63
|
|
|
65
|
|
||
Other liabilities
|
531
|
|
|
942
|
|
||
Total liabilities
|
57,697
|
|
|
55,605
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, without par value, authorized 4,400 shares
|
566
|
|
|
710
|
|
||
Common stock, without par value; authorized 350,000 shares; issued and outstanding 202,131 and 203,085 shares
|
4,660
|
|
|
4,725
|
|
||
Retained earnings
|
2,572
|
|
|
2,321
|
|
||
Accumulated other comprehensive income (loss)
|
(49
|
)
|
|
(122
|
)
|
||
Total shareholders’ equity
|
7,749
|
|
|
7,634
|
|
||
|
$
|
65,446
|
|
|
$
|
63,239
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|||||||||||||||
(In millions, except shares and per share amounts)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
469
|
|
|
$
|
434
|
|
|
$
|
902
|
|
|
$
|
854
|
|
Interest on money market investments
|
5
|
|
|
5
|
|
|
9
|
|
|
13
|
|
||||
Interest on securities
|
84
|
|
|
48
|
|
|
162
|
|
|
95
|
|
||||
Total interest income
|
558
|
|
|
487
|
|
|
1,073
|
|
|
962
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
14
|
|
|
12
|
|
|
28
|
|
|
24
|
|
||||
Interest on short- and long-term borrowings
|
16
|
|
|
10
|
|
|
28
|
|
|
20
|
|
||||
Total interest expense
|
30
|
|
|
22
|
|
|
56
|
|
|
44
|
|
||||
Net interest income
|
528
|
|
|
465
|
|
|
1,017
|
|
|
918
|
|
||||
Provision for loan losses
|
7
|
|
|
35
|
|
|
30
|
|
|
77
|
|
||||
Net interest income after provision for loan losses
|
521
|
|
|
430
|
|
|
987
|
|
|
841
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposit accounts
|
43
|
|
|
42
|
|
|
85
|
|
|
83
|
|
||||
Other service charges, commissions and fees
|
56
|
|
|
52
|
|
|
105
|
|
|
101
|
|
||||
Wealth management income
|
10
|
|
|
9
|
|
|
20
|
|
|
17
|
|
||||
Loan sales and servicing income
|
6
|
|
|
10
|
|
|
13
|
|
|
18
|
|
||||
Capital markets and foreign exchange
|
6
|
|
|
5
|
|
|
13
|
|
|
11
|
|
||||
Customer-related fees
|
121
|
|
|
118
|
|
|
236
|
|
|
230
|
|
||||
Dividends and other investment income
|
10
|
|
|
6
|
|
|
22
|
|
|
11
|
|
||||
Securities gains, net
|
2
|
|
|
3
|
|
|
7
|
|
|
2
|
|
||||
Other
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Total noninterest income
|
132
|
|
|
126
|
|
|
264
|
|
|
242
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
242
|
|
|
241
|
|
|
503
|
|
|
500
|
|
||||
Occupancy, net
|
32
|
|
|
30
|
|
|
66
|
|
|
59
|
|
||||
Furniture, equipment and software, net
|
32
|
|
|
31
|
|
|
64
|
|
|
62
|
|
||||
Other real estate expense, net
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Credit-related expense
|
8
|
|
|
6
|
|
|
16
|
|
|
12
|
|
||||
Provision for unfunded lending commitments
|
3
|
|
|
(4
|
)
|
|
(2
|
)
|
|
(10
|
)
|
||||
Professional and legal services
|
13
|
|
|
12
|
|
|
27
|
|
|
24
|
|
||||
Advertising
|
6
|
|
|
5
|
|
|
11
|
|
|
11
|
|
||||
FDIC premiums
|
13
|
|
|
10
|
|
|
25
|
|
|
17
|
|
||||
Amortization of core deposit and other intangibles
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
||||
Other
|
54
|
|
|
50
|
|
|
105
|
|
|
100
|
|
||||
Total noninterest expense
|
405
|
|
|
382
|
|
|
819
|
|
|
777
|
|
||||
Income before income taxes
|
248
|
|
|
174
|
|
|
432
|
|
|
306
|
|
||||
Income taxes
|
80
|
|
|
60
|
|
|
124
|
|
|
102
|
|
||||
Net income
|
168
|
|
|
114
|
|
|
308
|
|
|
204
|
|
||||
Net income applicable to controlling interest
|
168
|
|
|
114
|
|
|
308
|
|
|
204
|
|
||||
Preferred stock dividends
|
(12
|
)
|
|
(13
|
)
|
|
(23
|
)
|
|
(25
|
)
|
||||
Preferred stock redemption
|
(2
|
)
|
|
(10
|
)
|
|
(2
|
)
|
|
(10
|
)
|
||||
Net earnings applicable to common shareholders
|
$
|
154
|
|
|
$
|
91
|
|
|
$
|
283
|
|
|
$
|
169
|
|
Weighted average common shares outstanding during the period:
|
|
|
|
|
|
|
|
||||||||
Basic shares (in thousands)
|
201,822
|
|
|
204,236
|
|
|
202,083
|
|
|
204,113
|
|
||||
Diluted shares (in thousands)
|
208,183
|
|
|
204,536
|
|
|
209,353
|
|
|
204,317
|
|
||||
Net earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.76
|
|
|
$
|
0.44
|
|
|
$
|
1.39
|
|
|
$
|
0.82
|
|
Diluted
|
0.73
|
|
|
0.44
|
|
|
1.34
|
|
|
0.82
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|||||||||||||||
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income for the period
|
$
|
168
|
|
|
$
|
114
|
|
|
$
|
308
|
|
|
$
|
204
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains on investment securities
|
61
|
|
|
33
|
|
|
73
|
|
|
65
|
|
||||
Net unrealized gains (losses) on other noninterest-bearing investments
|
1
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
||||
Net unrealized holding gains on derivative instruments
|
1
|
|
|
4
|
|
|
—
|
|
|
17
|
|
||||
Reclassification adjustment for increase in interest income recognized in earnings on derivative instruments
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
||||
Pension and postretirement
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income
|
62
|
|
|
35
|
|
|
73
|
|
|
78
|
|
||||
Comprehensive income
|
$
|
230
|
|
|
$
|
149
|
|
|
$
|
381
|
|
|
$
|
282
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSO
LIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
|
||||||||||||||||||||||||
(In millions, except shares
and per share amounts)
|
Preferred
stock
|
|
Common stock
|
|
Retained earnings
|
|
Accumulated other
comprehensive income (loss)
|
|
Total
shareholders’ equity
|
|||||||||||||||
Shares
(in thousands)
|
|
Amount
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2016
|
$
|
710
|
|
|
203,085
|
|
|
$
|
4,725
|
|
|
$
|
2,321
|
|
|
|
$
|
(122
|
)
|
|
|
$
|
7,634
|
|
Net income for the period
|
|
|
|
|
|
|
308
|
|
|
|
|
|
|
308
|
|
|||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
73
|
|
|
|
73
|
|
|||||||||
Preferred stock redemption
|
(144
|
)
|
|
|
|
2
|
|
|
(2
|
)
|
|
|
|
|
|
(144
|
)
|
|||||||
Company common stock repurchased
|
|
|
(2,158
|
)
|
|
(90
|
)
|
|
|
|
|
|
|
|
(90
|
)
|
||||||||
Net activity under employee plans and related tax benefits
|
|
|
1,204
|
|
|
23
|
|
|
|
|
|
|
|
|
23
|
|
||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(23
|
)
|
|
|
|
|
|
(23
|
)
|
||||||||
Dividends on common stock, $0.16 per share
|
|
|
|
|
|
|
(32
|
)
|
|
|
|
|
|
(32
|
)
|
|||||||||
Balance at June 30, 2017
|
$
|
566
|
|
|
202,131
|
|
|
$
|
4,660
|
|
|
$
|
2,572
|
|
|
|
$
|
(49
|
)
|
|
|
$
|
7,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2015
|
$
|
828
|
|
|
204,417
|
|
|
$
|
4,767
|
|
|
$
|
1,967
|
|
|
|
$
|
(55
|
)
|
|
|
$
|
7,507
|
|
Net income for the period
|
|
|
|
|
|
|
204
|
|
|
|
|
|
|
204
|
|
|||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
78
|
|
|
|
78
|
|
|||||||||
Preferred stock redemption
|
(118
|
)
|
|
|
|
2
|
|
|
(10
|
)
|
|
|
|
|
|
(126
|
)
|
|||||||
Net activity under employee plans and related tax benefits
|
|
|
687
|
|
|
14
|
|
|
|
|
|
|
|
|
14
|
|
||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(25
|
)
|
|
|
|
|
|
(25
|
)
|
||||||||
Dividends on common stock, $0.12 per share
|
|
|
|
|
|
|
(24
|
)
|
|
|
|
|
|
(24
|
)
|
|||||||||
Change in deferred compensation
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
(2
|
)
|
|||||||||
Balance at June 30, 2016
|
$
|
710
|
|
|
205,104
|
|
|
$
|
4,783
|
|
|
$
|
2,110
|
|
|
|
$
|
23
|
|
|
|
$
|
7,626
|
|
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|||||||||||||||
(In millions)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net income for the period
|
$
|
168
|
|
|
$
|
114
|
|
|
$
|
308
|
|
|
$
|
204
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses
|
10
|
|
|
31
|
|
|
28
|
|
|
67
|
|
||||
Depreciation and amortization
|
47
|
|
|
29
|
|
|
84
|
|
|
54
|
|
||||
Share-based compensation
|
5
|
|
|
5
|
|
|
17
|
|
|
16
|
|
||||
Deferred income tax expense (benefit)
|
(5
|
)
|
|
(6
|
)
|
|
8
|
|
|
(11
|
)
|
||||
Net decrease (increase) in trading securities
|
(22
|
)
|
|
(53
|
)
|
|
54
|
|
|
(71
|
)
|
||||
Net decrease (increase) in loans held for sale
|
53
|
|
|
(36
|
)
|
|
89
|
|
|
3
|
|
||||
Change in other liabilities
|
(63
|
)
|
|
145
|
|
|
(21
|
)
|
|
163
|
|
||||
Change in other assets
|
12
|
|
|
(225
|
)
|
|
33
|
|
|
(218
|
)
|
||||
Other, net
|
(10
|
)
|
|
(8
|
)
|
|
(24
|
)
|
|
(5
|
)
|
||||
Net cash provided by (used in) operating activities
|
195
|
|
|
(4
|
)
|
|
576
|
|
|
202
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net decrease in money market investments
|
530
|
|
|
1,850
|
|
|
385
|
|
|
3,952
|
|
||||
Proceeds from maturities and paydowns of investment securities held-to-maturity
|
75
|
|
|
10
|
|
|
166
|
|
|
32
|
|
||||
Purchases of investment securities held-to-maturity
|
(66
|
)
|
|
(92
|
)
|
|
(73
|
)
|
|
(200
|
)
|
||||
Proceeds from sales, maturities, and paydowns of investment securities available-for-sale
|
630
|
|
|
476
|
|
|
1,160
|
|
|
2,574
|
|
||||
Purchases of investment securities available-for-sale
|
(353
|
)
|
|
(1,244
|
)
|
|
(3,466
|
)
|
|
(4,367
|
)
|
||||
Net change in loans and leases
|
(919
|
)
|
|
(1,105
|
)
|
|
(1,036
|
)
|
|
(1,898
|
)
|
||||
Net change in other noninterest-bearing investments
|
(29
|
)
|
|
9
|
|
|
(103
|
)
|
|
(3
|
)
|
||||
Purchases of premises and equipment
|
(44
|
)
|
|
(52
|
)
|
|
(94
|
)
|
|
(92
|
)
|
||||
Proceeds from sales of other real estate owned
|
1
|
|
|
5
|
|
|
4
|
|
|
9
|
|
||||
Other, net
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
||||
Net cash provided by (used in) investing activities
|
(173
|
)
|
|
(142
|
)
|
|
(3,053
|
)
|
|
10
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in deposits
|
(1,099
|
)
|
|
407
|
|
|
(858
|
)
|
|
(79
|
)
|
||||
Net change in short-term funds borrowed
|
205
|
|
|
38
|
|
|
2,015
|
|
|
(77
|
)
|
||||
Proceeds from debt over 90 days and up to one year
|
1,250
|
|
|
—
|
|
|
1,750
|
|
|
—
|
|
||||
Repayments of debt over 90 days and up to one year
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
||||
Cash paid for preferred stock redemption
|
(144
|
)
|
|
(126
|
)
|
|
(144
|
)
|
|
(126
|
)
|
||||
Repayments of long-term debt
|
—
|
|
|
(104
|
)
|
|
(153
|
)
|
|
(115
|
)
|
||||
Proceeds from the issuance of common stock
|
9
|
|
|
2
|
|
|
18
|
|
|
3
|
|
||||
Dividends paid on common and preferred stock
|
(26
|
)
|
|
(23
|
)
|
|
(55
|
)
|
|
(50
|
)
|
||||
Company common stock repurchased
|
(52
|
)
|
|
(5
|
)
|
|
(102
|
)
|
|
(6
|
)
|
||||
Net cash provided by (used in) financing activities
|
(107
|
)
|
|
189
|
|
|
2,221
|
|
|
(450
|
)
|
||||
Net increase (decrease) in cash and due from banks
|
(85
|
)
|
|
43
|
|
|
(256
|
)
|
|
(238
|
)
|
||||
Cash and due from banks at beginning of period
|
566
|
|
|
517
|
|
|
737
|
|
|
798
|
|
||||
Cash and due from banks at end of period
|
$
|
481
|
|
|
$
|
560
|
|
|
$
|
481
|
|
|
$
|
560
|
|
Cash paid for interest
|
$
|
30
|
|
|
$
|
25
|
|
|
$
|
52
|
|
|
$
|
43
|
|
Net cash paid for income taxes
|
128
|
|
|
102
|
|
|
122
|
|
|
101
|
|
||||
Noncash activities are summarized as follows:
|
|
|
|
|
|
|
|
||||||||
Loans held for investment transferred to other real estate owned
|
2
|
|
|
1
|
|
|
4
|
|
|
7
|
|
||||
Loans held for investment reclassified to (from) loans held for sale, net
|
(12
|
)
|
|
(2
|
)
|
|
23
|
|
|
(4
|
)
|
||||
AFS securities purchased, not settled
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
||||
HTM securities purchased, not settled
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
1.
|
BASIS OF PRESENTATION
|
2.
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
Standard
|
|
Description
|
|
Date of adoption
|
|
Effect on the financial statements or other significant matters
|
|
|
|
|
|
|
|
Standards not yet adopted by the Company
|
||||||
|
|
|
|
|
|
|
ASU 2014-09,
Revenue from Contracts with Customers (Topic 606) and subsequent related ASUs
|
|
The core principle of the new guidance is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The banking industry does not expect significant changes because major sources of revenue are from financial instruments that have been excluded from the scope of the new standard, (including loans, derivatives, debt and equity securities, etc.). However, these new standards affect other fees charged by banks, such as asset management fees, credit card interchange fees, deposit account fees, etc. Adoption may be made on a full retrospective basis with practical expedients, or on a modified retrospective basis with a cumulative effect adjustment.
|
|
January 1, 2018
|
|
Approximately 85% of our revenue, including all of our interest income and a portion of our noninterest income, is out of scope of the guidance. The contracts that are in scope of the guidance are primarily related to service charges and fees on deposit accounts, wealth management income, and other service charges, commissions and fees. We have completed our review of these contracts and have not identified any material changes in the timing of revenue recognition. We plan to adopt this guidance using the modified retrospective transition method, and we expect to expand our qualitative disclosures of revenue recognition upon adoption.
|
|
|
|
|
|
|
|
ASU 2016-01,
Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
|
|
The standard provides revised accounting guidance related to the accounting for and reporting of financial instruments. Some of the main provisions include:
– Equity investments that do not result in consolidation and are not accounted for under the equity method would be measured at fair value through net income
– Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income (“OCI”).
– Elimination of the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments carried at amortized cost. However, it will require the use of exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. |
|
January 1, 2018
|
|
We do not have a significant amount of equity securities classified as available-for-sale (“AFS”). Additionally, we do not have any financial liabilities accounted for under the fair value option. Therefore, the transition adjustment upon adoption of this guidance is not expected to be material. We have formed a working group to evaluate the fair value measurements of financial instruments for disclosure purposes.
|
|
|
|
|
|
|
|
ASU 2016-02, Leases (Topic 842)
|
|
The standard requires that a lessee recognize assets and liabilities for leases with lease terms of more than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, the standard will require both types of leases to be recognized on the balance sheet. It also requires disclosures to better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements.
|
|
January 1, 2019
|
|
We are currently evaluating the potential impact of this guidance on the Company’s financial statements. As of December 31, 2016, the Company had minimum noncancelable net operating lease payments of $275 million that are being evaluated. The implementation team is working on gathering all key lease data elements to meet the requirements of the new guidance. Additionally, we are implementing new lease software that will accommodate the new accounting requirements.
|
|
|
|
|
|
|
|
3.
|
FAIR VALUE
|
(In millions)
|
June 30, 2017
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
1
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
25
|
|
|
$
|
13,919
|
|
|
$
|
—
|
|
|
$
|
13,944
|
|
Municipal securities
|
|
|
1,317
|
|
|
|
|
|
1,317
|
|
|||||
Other debt securities
|
|
|
25
|
|
|
|
|
25
|
|
||||||
Money market mutual funds and other
|
54
|
|
|
1
|
|
|
|
|
55
|
|
|||||
|
79
|
|
|
15,262
|
|
|
—
|
|
|
15,341
|
|
||||
Trading account
|
|
|
61
|
|
|
|
|
61
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
502
|
|
|
|
|
502
|
|
||||||
Private equity investments
2
|
9
|
|
|
|
|
|
82
|
|
|
91
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Agriculture loan servicing and interest-only strips
|
|
|
|
|
|
19
|
|
|
19
|
|
|||||
Deferred compensation plan assets
|
95
|
|
|
|
|
|
|
|
|
95
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and forwards
|
|
|
1
|
|
|
|
|
1
|
|
||||||
Interest rate swaps for customers
|
|
|
37
|
|
|
|
|
37
|
|
||||||
Foreign currency exchange contracts
|
8
|
|
|
|
|
|
|
8
|
|
||||||
|
8
|
|
|
38
|
|
|
—
|
|
|
46
|
|
||||
|
$
|
191
|
|
|
$
|
15,863
|
|
|
$
|
101
|
|
|
$
|
16,155
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
118
|
|
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan obligations
|
95
|
|
|
|
|
|
|
95
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps for customers
|
|
|
32
|
|
|
|
|
32
|
|
||||||
Foreign currency exchange contracts
|
6
|
|
|
|
|
|
|
6
|
|
||||||
|
6
|
|
|
32
|
|
|
—
|
|
|
38
|
|
||||
|
$
|
219
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
251
|
|
(In millions)
|
December 31, 2016
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
1
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
—
|
|
|
$
|
12,009
|
|
|
$
|
—
|
|
|
$
|
12,009
|
|
Municipal securities
|
|
|
1,154
|
|
|
|
|
|
1,154
|
|
|||||
Other debt securities
|
|
|
24
|
|
|
|
|
|
24
|
|
|||||
Money market mutual funds and other
|
184
|
|
|
1
|
|
|
|
|
185
|
|
|||||
|
184
|
|
|
13,188
|
|
|
—
|
|
|
13,372
|
|
||||
Trading account
|
|
|
115
|
|
|
|
|
115
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
497
|
|
|
|
|
497
|
|
||||||
Private equity investments
1
|
18
|
|
|
|
|
|
73
|
|
|
91
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Agriculture loan servicing and interest-only strips
|
|
|
|
|
|
20
|
|
|
20
|
|
|||||
Deferred compensation plan assets
|
91
|
|
|
|
|
|
|
|
|
91
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and forwards
|
|
|
4
|
|
|
|
|
4
|
|
||||||
Interest rate swaps for customers
|
|
|
49
|
|
|
|
|
49
|
|
||||||
Foreign currency exchange contracts
|
11
|
|
|
|
|
|
|
11
|
|
||||||
|
11
|
|
|
53
|
|
|
—
|
|
|
64
|
|
||||
|
$
|
304
|
|
|
$
|
13,853
|
|
|
$
|
93
|
|
|
$
|
14,250
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25
|
|
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan obligations
|
91
|
|
|
|
|
|
|
91
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and forwards
|
|
|
1
|
|
|
|
|
1
|
|
||||||
Interest rate swaps for customers
|
|
|
49
|
|
|
|
|
49
|
|
||||||
Foreign currency exchange contracts
|
9
|
|
|
|
|
|
|
9
|
|
||||||
|
9
|
|
|
50
|
|
|
—
|
|
|
59
|
|
||||
|
$
|
125
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
175
|
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||||
|
June 30, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||||||
(In millions)
|
Private
equity investments |
|
Ag loan svcg and int-only strips
|
|
Private
equity investments |
|
Ag loan svcg and int-only strips
|
|
Private
equity investments |
|
Ag loan svcg and int-only strips
|
|
Private
equity investments |
|
Ag loan svcg and int-only strips
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
$
|
78
|
|
|
$
|
20
|
|
|
$
|
61
|
|
|
$
|
17
|
|
|
$
|
73
|
|
|
$
|
20
|
|
|
$
|
58
|
|
|
$
|
14
|
|
Securities gains (losses), net
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
Other noninterest income
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
||||||||
Purchases
|
5
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||||
Redemptions and paydowns
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at end of period
|
$
|
82
|
|
|
$
|
19
|
|
|
$
|
64
|
|
|
$
|
18
|
|
|
$
|
82
|
|
|
$
|
19
|
|
|
$
|
64
|
|
|
$
|
18
|
|
(In millions)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|||||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Securities gains, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
(In millions)
|
Fair value at June 30, 2017
|
|
Fair value at December 31, 2016
|
||||||||||||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private equity investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Impaired loans
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|
52
|
|
||||||||
Other real estate owned
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
1
|
|
|
$
|
54
|
|
|
Gains (losses) from fair value changes
|
||||||||||||||
(In millions)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Private equity investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Impaired loans
|
(6
|
)
|
|
(14
|
)
|
|
(7
|
)
|
|
(29
|
)
|
||||
Other real estate owned
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
|
$
|
(6
|
)
|
|
$
|
(15
|
)
|
|
$
|
(8
|
)
|
|
$
|
(30
|
)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||
(In millions)
|
Carrying
value
|
|
Estimated
fair value
|
|
Level
|
|
Carrying
value
|
|
Estimated
fair value
|
|
Level
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
HTM investment securities
|
$
|
775
|
|
|
$
|
774
|
|
|
2
|
|
$
|
868
|
|
|
$
|
850
|
|
|
2
|
Loans and leases (including loans held for sale), net of allowance
|
43,192
|
|
|
42,723
|
|
|
3
|
|
42,254
|
|
|
42,111
|
|
|
3
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
3,041
|
|
|
3,021
|
|
|
2
|
|
2,757
|
|
|
2,744
|
|
|
2
|
||||
Other short-term borrowings
|
3,400
|
|
|
3,400
|
|
|
2
|
|
500
|
|
|
500
|
|
|
2
|
||||
Long-term debt
|
383
|
|
|
406
|
|
|
2
|
|
535
|
|
|
552
|
|
|
2
|
4.
|
OFFSETTING ASSETS AND LIABILITIES
|
|
|
June 30, 2017
|
||||||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
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
|
|
$
|
427
|
|
|
$
|
—
|
|
|
$
|
427
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
427
|
|
Derivatives (included in other assets)
|
|
46
|
|
|
—
|
|
|
46
|
|
|
(15
|
)
|
|
—
|
|
|
31
|
|
||||||
|
|
$
|
473
|
|
|
$
|
—
|
|
|
$
|
473
|
|
|
$
|
(15
|
)
|
|
$
|
—
|
|
|
$
|
458
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds and other short-term borrowings
|
|
$
|
4,342
|
|
|
$
|
—
|
|
|
$
|
4,342
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,342
|
|
Derivatives (included in other liabilities)
|
|
38
|
|
|
—
|
|
|
38
|
|
|
(15
|
)
|
|
(15
|
)
|
|
8
|
|
||||||
|
|
$
|
4,380
|
|
|
$
|
—
|
|
|
$
|
4,380
|
|
|
$
|
(15
|
)
|
|
$
|
(15
|
)
|
|
$
|
4,350
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
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
|
|
$
|
568
|
|
|
$
|
—
|
|
|
$
|
568
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
568
|
|
Derivatives (included in other assets)
|
|
64
|
|
|
—
|
|
|
64
|
|
|
(17
|
)
|
|
—
|
|
|
47
|
|
||||||
|
|
$
|
632
|
|
|
$
|
—
|
|
|
$
|
632
|
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
615
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds and other short-term borrowings
|
|
$
|
827
|
|
|
$
|
—
|
|
|
$
|
827
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
827
|
|
Derivatives (included in other liabilities)
|
|
59
|
|
|
—
|
|
|
59
|
|
|
(17
|
)
|
|
(17
|
)
|
|
25
|
|
||||||
|
|
$
|
886
|
|
|
$
|
—
|
|
|
$
|
886
|
|
|
$
|
(17
|
)
|
|
$
|
(17
|
)
|
|
$
|
852
|
|
5.
|
INVESTMENTS
|
|
June 30, 2017
|
||||||||||||||
(In millions)
|
Amortized
cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated
fair value
|
||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
775
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
774
|
|
Available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
||||||||
Agency securities
|
1,828
|
|
|
5
|
|
|
6
|
|
|
1,827
|
|
||||
Agency guaranteed mortgage-backed securities
|
9,772
|
|
|
27
|
|
|
78
|
|
|
9,721
|
|
||||
Small Business Administration loan-backed securities
|
2,361
|
|
|
20
|
|
|
10
|
|
|
2,371
|
|
||||
Municipal securities
|
1,306
|
|
|
15
|
|
|
4
|
|
|
1,317
|
|
||||
Other debt securities
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
|
15,317
|
|
|
67
|
|
|
98
|
|
|
15,286
|
|
||||
Money market mutual funds and other
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||
|
15,372
|
|
|
67
|
|
|
98
|
|
|
15,341
|
|
||||
Total
|
$
|
16,147
|
|
|
$
|
75
|
|
|
$
|
107
|
|
|
$
|
16,115
|
|
|
December 31, 2016
|
||||||||||||||
(In millions)
|
Amortized
cost |
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated
fair value |
||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
868
|
|
|
$
|
5
|
|
|
$
|
23
|
|
|
$
|
850
|
|
Available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
||||||||
Agency securities
|
1,846
|
|
|
2
|
|
|
9
|
|
|
1,839
|
|
||||
Agency guaranteed mortgage-backed securities
|
7,986
|
|
|
7
|
|
|
110
|
|
|
7,883
|
|
||||
Small Business Administration loan-backed securities
|
2,298
|
|
|
8
|
|
|
18
|
|
|
2,288
|
|
||||
Municipal securities
|
1,182
|
|
|
1
|
|
|
29
|
|
|
1,154
|
|
||||
Other debt securities
|
25
|
|
|
—
|
|
|
1
|
|
|
24
|
|
||||
|
13,337
|
|
|
18
|
|
|
167
|
|
|
13,188
|
|
||||
Money market mutual funds and other
|
184
|
|
|
—
|
|
|
—
|
|
|
184
|
|
||||
|
13,521
|
|
|
18
|
|
|
167
|
|
|
13,372
|
|
||||
Total
|
$
|
14,389
|
|
|
$
|
23
|
|
|
$
|
190
|
|
|
$
|
14,222
|
|
|
June 30, 2017
|
||||||||||||||
|
Held-to-maturity
|
|
Available-for-sale
|
||||||||||||
(In millions)
|
Amortized
cost
|
|
Estimated
fair value
|
|
Amortized
cost
|
|
Estimated
fair value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Principal return in one year or less
|
$
|
108
|
|
|
$
|
108
|
|
|
$
|
1,990
|
|
|
$
|
1,983
|
|
Principal return after one year through five years
|
276
|
|
|
278
|
|
|
5,771
|
|
|
5,752
|
|
||||
Principal return after five years through ten years
|
207
|
|
|
210
|
|
|
4,787
|
|
|
4,784
|
|
||||
Principal return after ten years
|
184
|
|
|
178
|
|
|
2,769
|
|
|
2,767
|
|
||||
|
$
|
775
|
|
|
$
|
774
|
|
|
$
|
15,317
|
|
|
$
|
15,286
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(In millions)
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
$
|
3
|
|
|
$
|
241
|
|
|
$
|
6
|
|
|
$
|
132
|
|
|
$
|
9
|
|
|
$
|
373
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
5
|
|
|
928
|
|
|
1
|
|
|
122
|
|
|
6
|
|
|
1,050
|
|
||||||
Agency guaranteed mortgage-backed securities
|
71
|
|
|
5,693
|
|
|
7
|
|
|
391
|
|
|
78
|
|
|
6,084
|
|
||||||
Small Business Administration loan-backed securities
|
1
|
|
|
132
|
|
|
9
|
|
|
786
|
|
|
10
|
|
|
918
|
|
||||||
Municipal securities
|
4
|
|
|
466
|
|
|
—
|
|
|
15
|
|
|
4
|
|
|
481
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||
|
81
|
|
|
7,219
|
|
|
17
|
|
|
1,328
|
|
|
98
|
|
|
8,547
|
|
||||||
Total
|
$
|
84
|
|
|
$
|
7,460
|
|
|
$
|
23
|
|
|
$
|
1,460
|
|
|
$
|
107
|
|
|
$
|
8,920
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(In millions)
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
|
Gross
unrealized
losses
|
|
Estimated
fair
value
|
||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
$
|
15
|
|
|
$
|
467
|
|
|
$
|
8
|
|
|
$
|
61
|
|
|
$
|
23
|
|
|
$
|
528
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
9
|
|
|
950
|
|
|
—
|
|
|
127
|
|
|
9
|
|
|
1,077
|
|
||||||
Agency guaranteed mortgage-backed securities
|
102
|
|
|
6,649
|
|
|
7
|
|
|
326
|
|
|
109
|
|
|
6,975
|
|
||||||
Small Business Administration loan-backed securities
|
3
|
|
|
527
|
|
|
16
|
|
|
841
|
|
|
19
|
|
|
1,368
|
|
||||||
Municipal securities
|
28
|
|
|
992
|
|
|
—
|
|
|
9
|
|
|
28
|
|
|
1,001
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
2
|
|
|
14
|
|
|
2
|
|
|
14
|
|
||||||
|
142
|
|
|
9,118
|
|
|
25
|
|
|
1,317
|
|
|
167
|
|
|
10,435
|
|
||||||
Total
|
$
|
157
|
|
|
$
|
9,585
|
|
|
$
|
33
|
|
|
$
|
1,378
|
|
|
$
|
190
|
|
|
$
|
10,963
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||||||||||||||
|
June 30, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
|
June 30, 2016
|
|||||||||||||||||||||
(In millions)
|
Gross gains
|
|
Gross losses
|
|
Gross gains
|
|
Gross losses
|
|
Gross gains
|
|
Gross
losses
|
|
Gross gains
|
|
Gross
losses
|
|||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other noninterest-bearing investments
|
4
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
14
|
|
|
7
|
|
|
6
|
|
|
4
|
|
|||||
Net gains
1
|
|
|
$
|
2
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
7
|
|
|
|
|
$
|
2
|
|
(In millions)
|
Three Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2017 |
||||||||||||||||||||
|
Taxable
|
|
Nontaxable
|
|
Total
|
|
Taxable
|
|
Nontaxable
|
|
Total
|
||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
12
|
|
Available-for-sale
|
71
|
|
|
7
|
|
|
78
|
|
|
137
|
|
|
12
|
|
|
149
|
|
||||||
Trading
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
$
|
74
|
|
|
$
|
10
|
|
|
$
|
84
|
|
|
$
|
143
|
|
|
$
|
19
|
|
|
$
|
162
|
|
(In millions)
|
Three Months Ended
June 30, 2016 |
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||||
|
Taxable
|
|
Nontaxable
|
|
Total
|
|
Taxable
|
|
Nontaxable
|
|
Total
|
||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
11
|
|
Available-for-sale
|
38
|
|
|
3
|
|
|
41
|
|
|
78
|
|
|
5
|
|
|
83
|
|
||||||
Trading
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
$
|
42
|
|
|
$
|
6
|
|
|
$
|
48
|
|
|
$
|
84
|
|
|
$
|
11
|
|
|
$
|
95
|
|
6.
|
LOANS AND ALLOWANCE FOR CREDIT LOSSES
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Loans held for sale
|
$
|
53
|
|
|
$
|
172
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
13,850
|
|
|
$
|
13,452
|
|
Leasing
|
387
|
|
|
423
|
|
||
Owner-occupied
|
7,095
|
|
|
6,962
|
|
||
Municipal
|
871
|
|
|
778
|
|
||
Total commercial
|
22,203
|
|
|
21,615
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
2,186
|
|
|
2,019
|
|
||
Term
|
9,012
|
|
|
9,322
|
|
||
Total commercial real estate
|
11,198
|
|
|
11,341
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
2,697
|
|
|
2,645
|
|
||
1-4 family residential
|
6,359
|
|
|
5,891
|
|
||
Construction and other consumer real estate
|
560
|
|
|
486
|
|
||
Bankcard and other revolving plans
|
478
|
|
|
481
|
|
||
Other
|
188
|
|
|
190
|
|
||
Total consumer
|
10,282
|
|
|
9,693
|
|
||
Total loans
|
$
|
43,683
|
|
|
$
|
42,649
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
420
|
|
|
$
|
116
|
|
|
$
|
31
|
|
|
$
|
567
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
32
|
|
|
(9
|
)
|
|
7
|
|
|
30
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Gross loan and lease charge-offs
|
(82
|
)
|
|
(2
|
)
|
|
(8
|
)
|
|
(92
|
)
|
||||
Recoveries
|
23
|
|
|
11
|
|
|
5
|
|
|
39
|
|
||||
Net loan and lease (charge-offs) recoveries
|
(59
|
)
|
|
9
|
|
|
(3
|
)
|
|
(53
|
)
|
||||
Balance at end of period
|
$
|
393
|
|
|
$
|
116
|
|
|
$
|
35
|
|
|
$
|
544
|
|
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
54
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
65
|
|
Provision credited to earnings
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Balance at end of period
|
$
|
54
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
63
|
|
Total allowance for credit losses at end of period
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
393
|
|
|
$
|
116
|
|
|
$
|
35
|
|
|
$
|
544
|
|
Reserve for unfunded lending commitments
|
54
|
|
|
9
|
|
|
—
|
|
|
63
|
|
||||
Total allowance for credit losses
|
$
|
447
|
|
|
$
|
125
|
|
|
$
|
35
|
|
|
$
|
607
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
464
|
|
|
$
|
118
|
|
|
$
|
30
|
|
|
$
|
612
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
25
|
|
|
10
|
|
|
—
|
|
|
35
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Gross loan and lease charge-offs
|
(47
|
)
|
|
(8
|
)
|
|
(3
|
)
|
|
(58
|
)
|
||||
Recoveries
|
14
|
|
|
2
|
|
|
3
|
|
|
19
|
|
||||
Net loan and lease charge-offs
|
(33
|
)
|
|
(6
|
)
|
|
—
|
|
|
(39
|
)
|
||||
Balance at end of period
|
$
|
456
|
|
|
$
|
122
|
|
|
$
|
30
|
|
|
$
|
608
|
|
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
56
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
69
|
|
Provision credited to earnings
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Balance at end of period
|
$
|
54
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
65
|
|
Total allowance for credit losses at end of period
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
456
|
|
|
$
|
122
|
|
|
$
|
30
|
|
|
$
|
608
|
|
Reserve for unfunded lending commitments
|
54
|
|
|
11
|
|
|
—
|
|
|
65
|
|
||||
Total allowance for credit losses
|
$
|
510
|
|
|
$
|
133
|
|
|
$
|
30
|
|
|
$
|
673
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
454
|
|
|
$
|
114
|
|
|
$
|
38
|
|
|
$
|
606
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
71
|
|
|
12
|
|
|
(6
|
)
|
|
77
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Gross loan and lease charge-offs
|
(90
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
(106
|
)
|
||||
Recoveries
|
21
|
|
|
5
|
|
|
5
|
|
|
31
|
|
||||
Net loan and lease charge-offs
|
(69
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(75
|
)
|
||||
Balance at end of period
|
$
|
456
|
|
|
$
|
122
|
|
|
$
|
30
|
|
|
$
|
608
|
|
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
58
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
75
|
|
Provision credited to earnings
|
(4
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
(10
|
)
|
||||
Balance at end of period
|
$
|
54
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
65
|
|
Total allowance for credit losses at end of period
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
456
|
|
|
$
|
122
|
|
|
$
|
30
|
|
|
$
|
608
|
|
Reserve for unfunded lending commitments
|
54
|
|
|
11
|
|
|
—
|
|
|
65
|
|
||||
Total allowance for credit losses
|
$
|
510
|
|
|
$
|
133
|
|
|
$
|
30
|
|
|
$
|
673
|
|
|
December 31, 2016
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
56
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
65
|
|
Collectively evaluated for impairment
|
364
|
|
|
113
|
|
|
25
|
|
|
502
|
|
||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
420
|
|
|
$
|
116
|
|
|
$
|
31
|
|
|
$
|
567
|
|
Outstanding loan balances:
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
466
|
|
|
$
|
78
|
|
|
$
|
75
|
|
|
$
|
619
|
|
Collectively evaluated for impairment
|
21,111
|
|
|
11,231
|
|
|
9,611
|
|
|
41,953
|
|
||||
Purchased loans with evidence of credit deterioration
|
38
|
|
|
32
|
|
|
7
|
|
|
77
|
|
||||
Total
|
$
|
21,615
|
|
|
$
|
11,341
|
|
|
$
|
9,693
|
|
|
$
|
42,649
|
|
Nonaccrual loans are summarized as follows:
|
|||||||
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Loans held for sale
|
$
|
12
|
|
|
$
|
40
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
278
|
|
|
$
|
354
|
|
Leasing
|
10
|
|
|
14
|
|
||
Owner-occupied
|
86
|
|
|
74
|
|
||
Municipal
|
1
|
|
|
1
|
|
||
Total commercial
|
375
|
|
|
443
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
6
|
|
|
7
|
|
||
Term
|
37
|
|
|
29
|
|
||
Total commercial real estate
|
43
|
|
|
36
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
11
|
|
|
11
|
|
||
1-4 family residential
|
43
|
|
|
36
|
|
||
Construction and other consumer real estate
|
1
|
|
|
2
|
|
||
Bankcard and other revolving plans
|
—
|
|
|
1
|
|
||
Other
|
1
|
|
|
—
|
|
||
Total consumer loans
|
56
|
|
|
50
|
|
||
Total
|
$
|
474
|
|
|
$
|
529
|
|
Past due loans (accruing and nonaccruing) are summarized as follows:
|
|||||||||||||||||||||||||||
|
June 30, 2017
|
||||||||||||||||||||||||||
(In millions)
|
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
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans held for sale
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
13,735
|
|
|
$
|
54
|
|
|
$
|
61
|
|
|
$
|
115
|
|
|
$
|
13,850
|
|
|
$
|
10
|
|
|
$
|
216
|
|
Leasing
|
387
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
387
|
|
|
—
|
|
|
10
|
|
|||||||
Owner-occupied
|
7,035
|
|
|
26
|
|
|
34
|
|
|
60
|
|
|
7,095
|
|
|
3
|
|
|
52
|
|
|||||||
Municipal
|
871
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
871
|
|
|
—
|
|
|
1
|
|
|||||||
Total commercial
|
22,028
|
|
|
80
|
|
|
95
|
|
|
175
|
|
|
22,203
|
|
|
13
|
|
|
279
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,175
|
|
|
6
|
|
|
5
|
|
|
11
|
|
|
2,186
|
|
|
—
|
|
|
1
|
|
|||||||
Term
|
8,990
|
|
|
12
|
|
|
10
|
|
|
22
|
|
|
9,012
|
|
|
3
|
|
|
24
|
|
|||||||
Total commercial real estate
|
11,165
|
|
|
18
|
|
|
15
|
|
|
33
|
|
|
11,198
|
|
|
3
|
|
|
25
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
2,684
|
|
|
6
|
|
|
7
|
|
|
13
|
|
|
2,697
|
|
|
2
|
|
|
4
|
|
|||||||
1-4 family residential
|
6,328
|
|
|
10
|
|
|
21
|
|
|
31
|
|
|
6,359
|
|
|
—
|
|
|
17
|
|
|||||||
Construction and other consumer real estate
|
553
|
|
|
6
|
|
|
1
|
|
|
7
|
|
|
560
|
|
|
—
|
|
|
—
|
|
|||||||
Bankcard and other revolving plans
|
473
|
|
|
3
|
|
|
2
|
|
|
5
|
|
|
478
|
|
|
1
|
|
|
—
|
|
|||||||
Other
|
187
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
188
|
|
|
—
|
|
|
—
|
|
|||||||
Total consumer loans
|
10,225
|
|
|
26
|
|
|
31
|
|
|
57
|
|
|
10,282
|
|
|
3
|
|
|
21
|
|
|||||||
Total
|
$
|
43,418
|
|
|
$
|
124
|
|
|
$
|
141
|
|
|
$
|
265
|
|
|
$
|
43,683
|
|
|
$
|
19
|
|
|
$
|
325
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
(In millions)
|
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
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans held for sale
|
$
|
172
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
172
|
|
|
$
|
—
|
|
|
$
|
40
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
13,306
|
|
|
$
|
72
|
|
|
$
|
74
|
|
|
$
|
146
|
|
|
$
|
13,452
|
|
|
$
|
10
|
|
|
$
|
287
|
|
Leasing
|
423
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
423
|
|
|
—
|
|
|
14
|
|
|||||||
Owner-occupied
|
6,894
|
|
|
40
|
|
|
28
|
|
|
68
|
|
|
6,962
|
|
|
8
|
|
|
43
|
|
|||||||
Municipal
|
778
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
778
|
|
|
—
|
|
|
1
|
|
|||||||
Total commercial
|
21,401
|
|
|
112
|
|
|
102
|
|
|
214
|
|
|
21,615
|
|
|
18
|
|
|
345
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,010
|
|
|
7
|
|
|
2
|
|
|
9
|
|
|
2,019
|
|
|
1
|
|
|
1
|
|
|||||||
Term
|
9,291
|
|
|
9
|
|
|
22
|
|
|
31
|
|
|
9,322
|
|
|
12
|
|
|
18
|
|
|||||||
Total commercial real estate
|
11,301
|
|
|
16
|
|
|
24
|
|
|
40
|
|
|
11,341
|
|
|
13
|
|
|
19
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
2,635
|
|
|
4
|
|
|
6
|
|
|
10
|
|
|
2,645
|
|
|
1
|
|
|
5
|
|
|||||||
1-4 family residential
|
5,857
|
|
|
12
|
|
|
22
|
|
|
34
|
|
|
5,891
|
|
|
—
|
|
|
11
|
|
|||||||
Construction and other consumer real estate
|
479
|
|
|
3
|
|
|
4
|
|
|
7
|
|
|
486
|
|
|
3
|
|
|
—
|
|
|||||||
Bankcard and other revolving plans
|
478
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
481
|
|
|
1
|
|
|
1
|
|
|||||||
Other
|
189
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|||||||
Total consumer loans
|
9,638
|
|
|
22
|
|
|
33
|
|
|
55
|
|
|
9,693
|
|
|
5
|
|
|
17
|
|
|||||||
Total
|
$
|
42,340
|
|
|
$
|
150
|
|
|
$
|
159
|
|
|
$
|
309
|
|
|
$
|
42,649
|
|
|
$
|
36
|
|
|
$
|
381
|
|
1
|
Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is still not expected.
|
|
June 30, 2017
|
||||||||||||||||||||||
(In millions)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
12,760
|
|
|
$
|
336
|
|
|
$
|
754
|
|
|
$
|
—
|
|
|
$
|
13,850
|
|
|
|
||
Leasing
|
364
|
|
|
1
|
|
|
22
|
|
|
—
|
|
|
387
|
|
|
|
|||||||
Owner-occupied
|
6,715
|
|
|
113
|
|
|
267
|
|
|
—
|
|
|
7,095
|
|
|
|
|||||||
Municipal
|
865
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
871
|
|
|
|
|||||||
Total commercial
|
20,704
|
|
|
450
|
|
|
1,049
|
|
|
—
|
|
|
22,203
|
|
|
$
|
393
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
2,101
|
|
|
28
|
|
|
57
|
|
|
—
|
|
|
2,186
|
|
|
|
|||||||
Term
|
8,763
|
|
|
111
|
|
|
138
|
|
|
—
|
|
|
9,012
|
|
|
|
|||||||
Total commercial real estate
|
10,864
|
|
|
139
|
|
|
195
|
|
|
—
|
|
|
11,198
|
|
|
116
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,679
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
2,697
|
|
|
|
|||||||
1-4 family residential
|
6,309
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
6,359
|
|
|
|
|||||||
Construction and other consumer real estate
|
559
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
560
|
|
|
|
|||||||
Bankcard and other revolving plans
|
475
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
478
|
|
|
|
|||||||
Other
|
187
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
188
|
|
|
|
|||||||
Total consumer loans
|
10,209
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
10,282
|
|
|
35
|
|
||||||
Total
|
$
|
41,777
|
|
|
$
|
589
|
|
|
$
|
1,317
|
|
|
$
|
—
|
|
|
$
|
43,683
|
|
|
$
|
544
|
|
|
December 31, 2016
|
||||||||||||||||||||||
(In millions)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
12,185
|
|
|
$
|
266
|
|
|
$
|
998
|
|
|
$
|
3
|
|
|
$
|
13,452
|
|
|
|
||
Leasing
|
387
|
|
|
5
|
|
|
30
|
|
|
1
|
|
|
423
|
|
|
|
|||||||
Owner-occupied
|
6,560
|
|
|
96
|
|
|
306
|
|
|
—
|
|
|
6,962
|
|
|
|
|||||||
Municipal
|
765
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
778
|
|
|
|
|||||||
Total commercial
|
19,897
|
|
|
374
|
|
|
1,340
|
|
|
4
|
|
|
21,615
|
|
|
$
|
420
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
1,942
|
|
|
52
|
|
|
25
|
|
|
—
|
|
|
2,019
|
|
|
|
|||||||
Term
|
9,096
|
|
|
82
|
|
|
144
|
|
|
—
|
|
|
9,322
|
|
|
|
|||||||
Total commercial real estate
|
11,038
|
|
|
134
|
|
|
169
|
|
|
—
|
|
|
11,341
|
|
|
116
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,629
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
2,645
|
|
|
|
|||||||
1-4 family residential
|
5,851
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
5,891
|
|
|
|
|||||||
Construction and other consumer real estate
|
482
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
486
|
|
|
|
|||||||
Bankcard and other revolving plans
|
478
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
481
|
|
|
|
|||||||
Other
|
189
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
190
|
|
|
|
|||||||
Total consumer loans
|
9,629
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
9,693
|
|
|
31
|
|
||||||
Total
|
$
|
40,564
|
|
|
$
|
508
|
|
|
$
|
1,573
|
|
|
$
|
4
|
|
|
$
|
42,649
|
|
|
$
|
567
|
|
|
June 30, 2017
|
||||||||||||||||||
(In millions)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
375
|
|
|
$
|
80
|
|
|
$
|
249
|
|
|
$
|
329
|
|
|
$
|
36
|
|
Owner-occupied
|
121
|
|
|
65
|
|
|
40
|
|
|
105
|
|
|
4
|
|
|||||
Municipal
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total commercial
|
497
|
|
|
146
|
|
|
289
|
|
|
435
|
|
|
40
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
11
|
|
|
5
|
|
|
5
|
|
|
10
|
|
|
—
|
|
|||||
Term
|
59
|
|
|
38
|
|
|
15
|
|
|
53
|
|
|
1
|
|
|||||
Total commercial real estate
|
70
|
|
|
43
|
|
|
20
|
|
|
63
|
|
|
1
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
24
|
|
|
15
|
|
|
7
|
|
|
22
|
|
|
1
|
|
|||||
1-4 family residential
|
60
|
|
|
31
|
|
|
27
|
|
|
58
|
|
|
4
|
|
|||||
Construction and other consumer real estate
|
3
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|||||
Other
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total consumer loans
|
88
|
|
|
48
|
|
|
35
|
|
|
83
|
|
|
5
|
|
|||||
Total
|
$
|
655
|
|
|
$
|
237
|
|
|
$
|
344
|
|
|
$
|
581
|
|
|
$
|
46
|
|
|
December 31, 2016
|
||||||||||||||||||
(In millions)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
470
|
|
|
$
|
82
|
|
|
$
|
311
|
|
|
$
|
393
|
|
|
$
|
52
|
|
Owner-occupied
|
115
|
|
|
71
|
|
|
30
|
|
|
101
|
|
|
3
|
|
|||||
Municipal
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total commercial
|
586
|
|
|
154
|
|
|
341
|
|
|
495
|
|
|
55
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
22
|
|
|
7
|
|
|
6
|
|
|
13
|
|
|
—
|
|
|||||
Term
|
92
|
|
|
53
|
|
|
17
|
|
|
70
|
|
|
2
|
|
|||||
Total commercial real estate
|
114
|
|
|
60
|
|
|
23
|
|
|
83
|
|
|
2
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
24
|
|
|
16
|
|
|
7
|
|
|
23
|
|
|
—
|
|
|||||
1-4 family residential
|
59
|
|
|
27
|
|
|
28
|
|
|
55
|
|
|
6
|
|
|||||
Construction and other consumer real estate
|
3
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|||||
Other
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total consumer loans
|
88
|
|
|
45
|
|
|
37
|
|
|
82
|
|
|
6
|
|
|||||
Total
|
$
|
788
|
|
|
$
|
259
|
|
|
$
|
401
|
|
|
$
|
660
|
|
|
$
|
63
|
|
|
Three Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2017 |
||||||||||||
(In millions)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
398
|
|
|
$
|
4
|
|
|
$
|
356
|
|
|
$
|
4
|
|
Owner-occupied
|
109
|
|
|
1
|
|
|
102
|
|
|
4
|
|
||||
Municipal
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total commercial
|
508
|
|
|
5
|
|
|
459
|
|
|
8
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Term
|
59
|
|
|
7
|
|
|
60
|
|
|
9
|
|
||||
Total commercial real estate
|
70
|
|
|
7
|
|
|
71
|
|
|
9
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||
1-4 family residential
|
58
|
|
|
1
|
|
|
56
|
|
|
1
|
|
||||
Construction and other consumer real estate
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total consumer loans
|
82
|
|
|
1
|
|
|
81
|
|
|
1
|
|
||||
Total
|
$
|
660
|
|
|
$
|
13
|
|
|
$
|
611
|
|
|
$
|
18
|
|
|
Three Months Ended
June 30, 2016 |
|
Six Months Ended
June 30, 2016 |
||||||||||||
(In millions)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
430
|
|
|
$
|
1
|
|
|
$
|
317
|
|
|
$
|
2
|
|
Owner-occupied
|
111
|
|
|
3
|
|
|
113
|
|
|
6
|
|
||||
Municipal
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total commercial
|
542
|
|
|
4
|
|
|
431
|
|
|
8
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
12
|
|
|
1
|
|
|
12
|
|
|
1
|
|
||||
Term
|
98
|
|
|
3
|
|
|
97
|
|
|
7
|
|
||||
Total commercial real estate
|
110
|
|
|
4
|
|
|
109
|
|
|
8
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
25
|
|
|
—
|
|
|
24
|
|
|
1
|
|
||||
1-4 family residential
|
61
|
|
|
1
|
|
|
61
|
|
|
1
|
|
||||
Construction and other consumer real estate
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Other
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total consumer loans
|
91
|
|
|
1
|
|
|
90
|
|
|
2
|
|
||||
Total
|
$
|
743
|
|
|
$
|
9
|
|
|
$
|
630
|
|
|
$
|
18
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||
|
Recorded investment resulting from the following modification types:
|
|
|
||||||||||||||||||||||||
(In millions)
|
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
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
43
|
|
|
$
|
68
|
|
Owner-occupied
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
8
|
|
|
13
|
|
|
24
|
|
|||||||
Total commercial
|
2
|
|
|
12
|
|
|
1
|
|
|
2
|
|
|
19
|
|
|
56
|
|
|
92
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
5
|
|
|||||||
Term
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
8
|
|
|
15
|
|
|||||||
Total commercial real estate
|
4
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
11
|
|
|
20
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
2
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
15
|
|
|||||||
1-4 family residential
|
1
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
2
|
|
|
27
|
|
|
38
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||||
Total consumer loans
|
1
|
|
|
3
|
|
|
17
|
|
|
1
|
|
|
2
|
|
|
31
|
|
|
55
|
|
|||||||
Total accruing
|
7
|
|
|
17
|
|
|
18
|
|
|
4
|
|
|
23
|
|
|
98
|
|
|
167
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
1
|
|
|
—
|
|
|
18
|
|
|
4
|
|
|
65
|
|
|
14
|
|
|
102
|
|
|||||||
Owner-occupied
|
1
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
10
|
|
|
15
|
|
|||||||
Municipal
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Total commercial
|
2
|
|
|
3
|
|
|
18
|
|
|
5
|
|
|
66
|
|
|
24
|
|
|
118
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Term
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
8
|
|
|||||||
Total commercial real estate
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
8
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
1-4 family residential
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
6
|
|
|
10
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total consumer loans
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
6
|
|
|
11
|
|
|||||||
Total nonaccruing
|
4
|
|
|
5
|
|
|
20
|
|
|
5
|
|
|
69
|
|
|
34
|
|
|
137
|
|
|||||||
Total
|
$
|
11
|
|
|
$
|
22
|
|
|
$
|
38
|
|
|
$
|
9
|
|
|
$
|
92
|
|
|
$
|
132
|
|
|
$
|
304
|
|
2
|
Includes TDRs that resulted from a combination of any of the previous modification types.
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
Recorded investment resulting from the following modification types:
|
|
|
||||||||||||||||||||||||
(In millions)
|
Interest
rate below
market
|
|
Maturity
or term
extension
|
|
Principal
forgiveness
|
|
Payment
deferral
|
|
Other
1
|
|
Multiple
modification
types
2
|
|
Total
|
||||||||||||||
Accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
47
|
|
Owner-occupied
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
8
|
|
|
10
|
|
|
22
|
|
|||||||
Total commercial
|
3
|
|
|
19
|
|
|
1
|
|
|
—
|
|
|
8
|
|
|
38
|
|
|
69
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
8
|
|
|||||||
Term
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
10
|
|
|
17
|
|
|||||||
Total commercial real estate
|
4
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
14
|
|
|
25
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
1
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
14
|
|
|||||||
1-4 family residential
|
3
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
2
|
|
|
30
|
|
|
42
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||||
Total consumer loans
|
3
|
|
|
2
|
|
|
16
|
|
|
—
|
|
|
2
|
|
|
34
|
|
|
57
|
|
|||||||
Total accruing
|
10
|
|
|
25
|
|
|
17
|
|
|
1
|
|
|
12
|
|
|
86
|
|
|
151
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
33
|
|
|
25
|
|
|
60
|
|
|||||||
Owner-occupied
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
12
|
|
|
17
|
|
|||||||
Municipal
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Total commercial
|
1
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
34
|
|
|
37
|
|
|
78
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Term
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
8
|
|
|||||||
Total commercial real estate
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
10
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||||
1-4 family residential
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
8
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Total consumer loans
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
6
|
|
|
12
|
|
|||||||
Total nonaccruing
|
3
|
|
|
3
|
|
|
3
|
|
|
6
|
|
|
39
|
|
|
46
|
|
|
100
|
|
|||||||
Total
|
$
|
13
|
|
|
$
|
28
|
|
|
$
|
20
|
|
|
$
|
7
|
|
|
$
|
51
|
|
|
$
|
132
|
|
|
$
|
251
|
|
1
|
Includes TDRs that resulted from other modification types including, but not limited to, a legal judgment awarded on different terms, a bankruptcy plan confirmed on different terms, a settlement that includes the delivery of collateral in exchange for debt reduction, etc.
|
2
|
Includes TDRs that resulted from a combination of any of the previous modification types.
|
|
Three Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2017 |
|||||||||||||||||||||
(In millions)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
1,291
|
|
$
|
—
|
|
Owner-occupied
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
5,405
|
|
3
|
|
||||||
Total commercial
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||||
Total
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
Three Months Ended
June 30, 2016 |
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||||
(In millions)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
17
|
|
Owner-occupied
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Total commercial
|
—
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
21
|
|
|
21
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
21
|
|
(In millions)
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
|
|
||||
Commercial
|
$
|
40
|
|
|
$
|
49
|
|
Commercial real estate
|
15
|
|
|
51
|
|
||
Consumer
|
7
|
|
|
9
|
|
||
Outstanding balance
|
$
|
62
|
|
|
$
|
109
|
|
Carrying amount
|
$
|
43
|
|
|
$
|
77
|
|
Less ALLL
|
—
|
|
|
1
|
|
||
Carrying amount, net
|
$
|
43
|
|
|
$
|
76
|
|
(In millions)
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
32
|
|
|
$
|
43
|
|
|
$
|
33
|
|
|
$
|
40
|
|
Accretion
|
(11
|
)
|
|
(7
|
)
|
|
(15
|
)
|
|
(13
|
)
|
||||
Reclassification from nonaccretable difference
|
(3
|
)
|
|
1
|
|
|
(1
|
)
|
|
9
|
|
||||
Disposals and other
|
3
|
|
|
1
|
|
|
4
|
|
|
2
|
|
||||
Balance at end of period
|
$
|
21
|
|
|
$
|
38
|
|
|
$
|
21
|
|
|
$
|
38
|
|
7.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Notional
amount
|
|
Fair value
|
|
Notional
amount
|
|
Fair value
|
||||||||||||||||
(In millions)
|
Other
assets
|
|
Other
liabilities
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
1,388
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,388
|
|
|
$
|
2
|
|
|
$
|
1
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and forwards
|
196
|
|
|
1
|
|
|
—
|
|
|
235
|
|
|
2
|
|
|
—
|
|
||||||
Interest rate swaps for customers
1
|
4,412
|
|
|
37
|
|
|
32
|
|
|
4,162
|
|
|
49
|
|
|
49
|
|
||||||
Foreign exchange
|
318
|
|
|
8
|
|
|
6
|
|
|
424
|
|
|
11
|
|
|
9
|
|
||||||
Total derivatives not designated as hedging instruments
|
4,926
|
|
|
46
|
|
|
38
|
|
|
4,821
|
|
|
62
|
|
|
58
|
|
||||||
Total derivatives
|
$
|
6,314
|
|
|
$
|
46
|
|
|
$
|
38
|
|
|
$
|
6,209
|
|
|
$
|
64
|
|
|
$
|
59
|
|
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||||
(In millions)
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
$
|
2
|
|
|
$
|
1
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps and forward contracts
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
||||||||||||
Interest rate swaps for customers
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
4
|
|
|
|
||||||||||||||
Foreign exchange
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
7
|
|
|
|
||||||||||||||
Total derivatives
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||||||||
(In millions)
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
$
|
8
|
|
|
$
|
3
|
|
|
|
|
|
|
$
|
28
|
|
|
$
|
6
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps and forward contracts
|
|
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
$
|
2
|
|
|
|
||||||||||||
Interest rate swaps for customers
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
||||||||||||||
Foreign exchange
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
5
|
|
|
|
||||||||||||||
Total derivatives
|
$
|
8
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
—
|
|
1
|
Amounts recognized in OCI and reclassified from AOCI represent the effective portion of the derivative gain (loss). For the 12 months following
June 30, 2017
, we estimate that no significant amount will be reclassified from AOCI into interest income.
|
8.
|
DEBT AND SHAREHOLDERS’ EQUITY
|
(In millions)
|
June 30,
2017 |
|
December 31, 2016
|
||||
|
|
|
|
||||
Subordinated notes
|
$
|
247
|
|
|
$
|
247
|
|
Senior notes
|
135
|
|
|
287
|
|
||
Capital lease obligations
|
1
|
|
|
1
|
|
||
Total
|
$
|
383
|
|
|
$
|
535
|
|
(In millions)
|
Net unrealized gains (losses) on investment securities
|
|
Net unrealized gains (losses) on derivatives and other
|
|
Pension and post-retirement
|
|
Total
|
||||||||
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2016
|
$
|
(93
|
)
|
|
$
|
2
|
|
|
$
|
(31
|
)
|
|
$
|
(122
|
)
|
OCI before reclassifications, net of tax
|
73
|
|
|
2
|
|
|
—
|
|
|
75
|
|
||||
Amounts reclassified from AOCI, net of tax
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||
OCI
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
||||
Balance at June 30, 2017
|
$
|
(20
|
)
|
|
$
|
2
|
|
|
$
|
(31
|
)
|
|
$
|
(49
|
)
|
Income tax expense included in OCI
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2016
|
$
|
(18
|
)
|
|
$
|
1
|
|
|
$
|
(38
|
)
|
|
$
|
(55
|
)
|
OCI (loss) before reclassifications, net of tax
|
65
|
|
|
17
|
|
|
(1
|
)
|
|
81
|
|
||||
Amounts reclassified from AOCI, net of tax
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
OCI (loss)
|
65
|
|
|
14
|
|
|
(1
|
)
|
|
78
|
|
||||
Balance at June 30, 2016
|
$
|
47
|
|
|
$
|
15
|
|
|
$
|
(39
|
)
|
|
$
|
23
|
|
Income tax expense included in OCI
|
$
|
40
|
|
|
$
|
8
|
|
|
$
|
1
|
|
|
$
|
49
|
|
|
|
Amounts reclassified
from AOCI
1
|
|
Amounts reclassified
from AOCI
1
|
|
Statement of income (SI)
Balance sheet (BS)
|
|
|
||||||||||||
(In millions)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
|
|||||||||||||
Details about AOCI components
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Affected line item
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains on derivative instruments
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
SI
|
|
Interest and fees on loans
|
Income tax expense
|
|
—
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
|
|
|
||||
Amounts Reclassified from AOCI
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
|
|
|
1
|
Negative reclassification amounts indicate decreases to earnings in the statement of income and increases to balance sheet assets. The opposite applies to positive reclassification amounts.
|
9.
|
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
|
|
||||
Net unfunded commitments to extend credit
1
|
$
|
18,409
|
|
|
$
|
18,274
|
|
Standby letters of credit:
|
|
|
|
||||
Financial
|
672
|
|
|
771
|
|
||
Performance
|
194
|
|
|
196
|
|
||
Commercial letters of credit
|
46
|
|
|
60
|
|
||
Total unfunded lending commitments
|
$
|
19,321
|
|
|
$
|
19,301
|
|
1
|
Net of participations
|
•
|
a governmental inquiry conducted by the Department of Justice into our payment processing practices relating to certain telemarketing customers alleged to have engaged in fraudulent marketing practices. The factual issues related to this case are the same as those involved in the
Reyes v. Zions First National Bank, et. al.
matter which was previously disclosed and settled in December 2016. We commenced substantive settlement discussion with the U.S. Attorney’s Office for the Eastern District of Pennsylvania in the third quarter of 2016. There can be no assurance, however, that the parties will be able to settle this matter.
|
•
|
a civil suit,
Shou-En Wang v. CB&T,
brought against us in the Superior Court for Los Angeles County, Central District in April 2016. The case relates to our depositor relationships with customers who were promoters of an investment program that allegedly misappropriated investors’ funds. This case is in an early phase, with initial motion practice having been completed.
|
•
|
a civil suit,
McFarland as Trustee for International Manufacturing Group v. CB&T, et. al.
, brought against us in the United States Bankruptcy Court for the Eastern District of California in May 2016. The Trustee seeks to recover loan payments previously repaid to us by our customer, International Manufacturing Group (“IMG”), alleging that IMG, along with its principal, obtained loans and made loan repayments in furtherance of an alleged Ponzi scheme. This case is in an early phase with initial motion practice having been completed.
|
•
|
a civil suit,
JTS Communities, Inc. et. al v. CB&T, Jun Enkoji and Dawn Satow
, brought against us in the Superior Court of California, Sacramento County, California in June 2017. In this case four investors in IMG seek to hold us liable for losses arising from their investments in that company, alleging that we conspired with and knowingly assisted IMG and its principal in furtherance of an alleged Ponzi Scheme.
|
•
|
a civil class action lawsuit,
Evans v. CB&T
, brought against us in the Eastern District of California in May 2017. This case was filed on behalf of a class of up to 50 investors in IMG and seeks to hold us liable for losses of class members arising from their investments in IMG, alleging that we conspired with and knowingly assisted IMG and its principal in furtherance of an alleged Ponzi Scheme.
|
10.
|
RETIREMENT PLANS
|
|
Pension and Other Retirement Plans
|
|
Pension and Other Retirement Plans
|
||||||||||||
(In millions)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
4
|
|
Expected return on plan assets
|
(3
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(6
|
)
|
||||
Partial settlement loss
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Amortization of net actuarial loss
|
1
|
|
|
2
|
|
|
2
|
|
|
4
|
|
||||
Net periodic benefit cost
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
2
|
|
11.
|
INCOME TAXES
|
•
|
We reevaluated our state tax positions in the first quarter of 2017 which resulted in a one-time
$14 million
benefit to income tax expense.
|
•
|
We reduced expense by
$4 million
in the second quarter of 2017 due to changes in the carrying value of various state deferred tax items.
|
•
|
We also recorded a
$4 million
benefit in the first quarter of 2017, and a
$3 million
benefit in the second quarter of 2017, from the implementation of new accounting guidance related to stock-based compensation.
|
12.
|
OPERATING SEGMENT INFORMATION
|
(In millions)
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
|
NBAZ
|
|
NSB
|
||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income
|
$
|
164
|
|
|
$
|
154
|
|
|
$
|
124
|
|
|
$
|
117
|
|
|
$
|
123
|
|
|
$
|
110
|
|
|
$
|
51
|
|
|
$
|
47
|
|
|
$
|
33
|
|
|
$
|
30
|
|
Provision for loan losses
|
(2
|
)
|
|
—
|
|
|
7
|
|
|
31
|
|
|
(1
|
)
|
|
4
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||||
Net interest income after provision for loan losses
|
166
|
|
|
154
|
|
|
117
|
|
|
86
|
|
|
124
|
|
|
106
|
|
|
52
|
|
|
47
|
|
|
33
|
|
|
29
|
|
||||||||||
Noninterest income
|
37
|
|
|
37
|
|
|
30
|
|
|
28
|
|
|
19
|
|
|
16
|
|
|
10
|
|
|
10
|
|
|
10
|
|
|
10
|
|
||||||||||
Noninterest expense
|
111
|
|
|
115
|
|
|
89
|
|
|
83
|
|
|
76
|
|
|
73
|
|
|
36
|
|
|
38
|
|
|
35
|
|
|
36
|
|
||||||||||
Income (loss) before income taxes
|
$
|
92
|
|
|
$
|
76
|
|
|
$
|
58
|
|
|
$
|
31
|
|
|
$
|
67
|
|
|
$
|
49
|
|
|
$
|
26
|
|
|
$
|
19
|
|
|
$
|
8
|
|
|
$
|
3
|
|
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total loans
|
$
|
12,483
|
|
|
$
|
12,600
|
|
|
$
|
10,856
|
|
|
$
|
10,761
|
|
|
$
|
9,476
|
|
|
$
|
9,260
|
|
|
$
|
4,246
|
|
|
$
|
4,008
|
|
|
$
|
2,372
|
|
|
$
|
2,274
|
|
Total deposits
|
15,987
|
|
|
15,977
|
|
|
11,218
|
|
|
10,959
|
|
|
10,917
|
|
|
10,882
|
|
|
4,762
|
|
|
4,582
|
|
|
4,233
|
|
|
4,103
|
|
||||||||||
(In millions)
|
Vectra
|
|
TCBW
|
|
Other
|
|
Consolidated
Company
|
|
|
|
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
||||||||||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income
|
$
|
32
|
|
|
$
|
29
|
|
|
$
|
11
|
|
|
$
|
9
|
|
|
$
|
(10
|
)
|
|
$
|
(31
|
)
|
|
$
|
528
|
|
|
$
|
465
|
|
|
|
|
|
||||
Provision for loan losses
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
7
|
|
|
35
|
|
|
|
|
|
||||||||||||
Net interest income after provision for loan losses
|
29
|
|
|
32
|
|
|
11
|
|
|
8
|
|
|
(11
|
)
|
|
(32
|
)
|
|
521
|
|
|
430
|
|
|
|
|
|
||||||||||||
Noninterest income
|
7
|
|
|
6
|
|
|
1
|
|
|
1
|
|
|
18
|
|
|
18
|
|
|
132
|
|
|
126
|
|
|
|
|
|
||||||||||||
Noninterest expense
|
25
|
|
|
25
|
|
|
5
|
|
|
5
|
|
|
28
|
|
|
7
|
|
|
405
|
|
|
382
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
$
|
11
|
|
|
$
|
13
|
|
|
$
|
7
|
|
|
$
|
4
|
|
|
$
|
(21
|
)
|
|
$
|
(21
|
)
|
|
$
|
248
|
|
|
$
|
174
|
|
|
|
|
|
||||
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total loans
|
$
|
2,603
|
|
|
$
|
2,415
|
|
|
$
|
911
|
|
|
$
|
777
|
|
|
$
|
296
|
|
|
$
|
13
|
|
|
$
|
43,243
|
|
|
$
|
42,108
|
|
|
|
|
|
||||
Total deposits
|
2,728
|
|
|
2,667
|
|
|
1,094
|
|
|
947
|
|
|
1,395
|
|
|
(167
|
)
|
|
52,334
|
|
|
49,950
|
|
|
|
|
|
(In millions)
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
|
NBAZ
|
|
NSB
|
||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income
|
$
|
319
|
|
|
$
|
304
|
|
|
$
|
238
|
|
|
$
|
230
|
|
|
$
|
233
|
|
|
$
|
213
|
|
|
$
|
100
|
|
|
$
|
92
|
|
|
$
|
65
|
|
|
$
|
60
|
|
Provision for loan losses
|
33
|
|
|
(30
|
)
|
|
8
|
|
|
135
|
|
|
(6
|
)
|
|
1
|
|
|
1
|
|
|
2
|
|
|
(5
|
)
|
|
(25
|
)
|
||||||||||
Net interest income after provision for loan losses
|
286
|
|
|
334
|
|
|
230
|
|
|
95
|
|
|
239
|
|
|
212
|
|
|
99
|
|
|
90
|
|
|
70
|
|
|
85
|
|
||||||||||
Noninterest income
|
72
|
|
|
73
|
|
|
59
|
|
|
57
|
|
|
36
|
|
|
32
|
|
|
20
|
|
|
20
|
|
|
20
|
|
|
19
|
|
||||||||||
Noninterest expense
|
224
|
|
|
221
|
|
|
173
|
|
|
168
|
|
|
151
|
|
|
145
|
|
|
73
|
|
|
72
|
|
|
70
|
|
|
69
|
|
||||||||||
Income (loss) before income taxes
|
$
|
134
|
|
|
$
|
186
|
|
|
$
|
116
|
|
|
$
|
(16
|
)
|
|
$
|
124
|
|
|
$
|
99
|
|
|
$
|
46
|
|
|
$
|
38
|
|
|
$
|
20
|
|
|
$
|
35
|
|
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total loans
|
$
|
12,486
|
|
|
$
|
12,453
|
|
|
$
|
10,747
|
|
|
$
|
10,566
|
|
|
$
|
9,391
|
|
|
$
|
9,083
|
|
|
$
|
4,254
|
|
|
$
|
3,936
|
|
|
$
|
2,355
|
|
|
$
|
2,269
|
|
Total deposits
|
16,127
|
|
|
15,839
|
|
|
11,268
|
|
|
11,116
|
|
|
10,919
|
|
|
10,681
|
|
|
4,712
|
|
|
4,513
|
|
|
4,222
|
|
|
4,057
|
|
||||||||||
(In millions)
|
Vectra
|
|
TCBW
|
|
Other
|
|
Consolidated
Company
|
|
|
|
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
||||||||||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income
|
$
|
61
|
|
|
$
|
59
|
|
|
$
|
22
|
|
|
$
|
18
|
|
|
$
|
(21
|
)
|
|
$
|
(58
|
)
|
|
$
|
1,017
|
|
|
$
|
918
|
|
|
|
|
|
||||
Provision for loan losses
|
—
|
|
|
(6
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
77
|
|
|
|
|
|
||||||||||||
Net interest income after provision for loan losses
|
61
|
|
|
65
|
|
|
23
|
|
|
18
|
|
|
(21
|
)
|
|
(58
|
)
|
|
987
|
|
|
841
|
|
|
|
|
|
||||||||||||
Noninterest income
|
12
|
|
|
11
|
|
|
2
|
|
|
2
|
|
|
43
|
|
|
28
|
|
|
264
|
|
|
242
|
|
|
|
|
|
||||||||||||
Noninterest expense
|
50
|
|
|
48
|
|
|
10
|
|
|
10
|
|
|
68
|
|
|
44
|
|
|
819
|
|
|
777
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
$
|
23
|
|
|
$
|
28
|
|
|
$
|
15
|
|
|
$
|
10
|
|
|
$
|
(46
|
)
|
|
$
|
(74
|
)
|
|
$
|
432
|
|
|
$
|
306
|
|
|
|
|
|
||||
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total loans
|
$
|
2,569
|
|
|
$
|
2,434
|
|
|
$
|
894
|
|
|
$
|
755
|
|
|
$
|
210
|
|
|
$
|
60
|
|
|
$
|
42,906
|
|
|
$
|
41,556
|
|
|
|
|
|
||||
Total deposits
|
2,759
|
|
|
2,725
|
|
|
1,097
|
|
|
950
|
|
|
1,170
|
|
|
(129
|
)
|
|
52,274
|
|
|
49,752
|
|
|
|
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total number
of shares
repurchased
1
|
|
Average
price paid
per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value of shares that may yet be
purchased under the plan
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
April
|
|
|
8,240
|
|
|
|
$
|
42.32
|
|
|
|
—
|
|
|
|
|
$
|
45,003,893
|
|
|
May
|
|
|
1,243,860
|
|
|
|
40.90
|
|
|
|
1,097,905
|
|
|
|
|
3,906
|
|
|
||
June
|
|
|
15,564
|
|
|
|
42.30
|
|
|
|
—
|
|
|
|
|
3,906
|
|
|
||
Second quarter
|
|
|
1,267,664
|
|
|
|
40.93
|
|
|
|
1,097,905
|
|
|
|
|
|
|
1
|
Represents common shares acquired from employees in connection with our stock compensation plan in addition to shares acquired under previously reported share repurchase plans. Shares were acquired from employees to pay for their payroll taxes and stock option exercise cost upon the vesting of restricted stock and restricted stock units, and the exercise of stock options, under provisions of an employee share-based compensation plan.
|
ITEM 6.
|
EXHIBITS
|
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 February 27, 2015, incorporated by reference to Exhibit 3.2 of Form 10-Q for the quarter ended March 31, 2015.
|
*
|
|
|
|
|
10.1
|
|
Second amendment to the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan, dated August 19, 2016 (filed herewith).
|
|
|
|
|
|
10.2
|
|
Zions Bancorporation 2017-2019 Value Sharing Plan (filed herewith).
|
|
|
|
|
|
10.3
|
|
Second amendment to the Zions Bancorporation Pension Plan, dated July 17, 2017 (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 June 30, 2017 and December 31, 2016, (ii) the Consolidated Statements of Income for the three months ended June 30, 2017 and June 30, 2016 and the six months ended June 30, 2017 and June 30, 2016, (iii) the Consolidated Statements of Comprehensive Income for the three months ended June 30, 2017 and June 30, 2016 and the six months ended June 30, 2017 and June 30, 2016, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2017 and June 30, 2016, (v) the Consolidated Statements of Cash Flows for the three months ended June 30, 2017 and June 30, 2016 and the six months ended June 30, 2017 and June 30, 2016 and (vi) the Notes to Consolidated Financial Statements (filed herewith).
|
|
|
ZIONS BANCORPORATION
|
|
/s/ Harris H. Simmons
|
Harris H. Simmons, Chairman and
Chief Executive Officer
|
|
/s/ Paul E. Burdiss
|
Paul E. Burdiss, Executive Vice President and Chief Financial Officer
|
1)
|
Establishment of Award Fund
|
•
|
Total Non-Interest Expenses – restraining growth to slightly above 2016 levels; and
|
•
|
Efficiency Ratio in the low 60 percent range for 2017.
|
1.)
|
Zions Bancorporation’s Pre-tax Pre-Provision Net Revenue (“PPNR”);
|
2.)
|
Zions Bancorporation’s Net Charge-Offs;
|
3.)
|
Zions Bancorporation’s Adjusted Direct “Efficiency Ratio” Expense;
|
4.)
|
Zions Bancorporation’s Managed Core “Customer Fee” Non-Interest Income;
|
5.)
|
Zions Bancorporation’s Return on Average Assets (relative to Zions Bancorporation peer companies); and,
|
6.)
|
Zions Bancorporation’s Risk Adjusted Net Interest Margin (relative to Zions Bancorporation peer companies).
|
2)
|
Participation Units
|
3)
|
Initial Nominal Value Determination:
|
4)
|
Final Cash Settlement of the Initial Nominal Values:
|
5)
|
Definitions of Factors:
|
▪
|
Fair value and nonhedge derivative income (losses)
|
▪
|
Equity securities gains (losses)
|
▪
|
Fixed income securities gains (losses)
|
▪
|
Net impairment losses on investment securities
|
▪
|
Tax equivalency gross up
|
▪
|
Provision for unfunded lending commitments
|
▪
|
Debt extinguishment costs
|
▪
|
OREO expenses
|
▪
|
Severance or other appropriate restructuring costs
|
▪
|
Core Deposit Intangible expenses
|
•
|
any adjustment deemed necessary by the Committee as a result of unusual and extraordinary changes in internal cost or income allocations during the Performance Period resulting from reclassifications or changes in allocation methodologies which produce material changes in costs or income which are not offset by a corresponding change in income or costs within the Company;
|
•
|
any other adjustments, which, in the sole discretion of the Committee, are required to equitably reflect operating performance during the Performance Period.
|
B)
|
Net Charge Offs
will be calculated using the net charge-off amounts reflected in the Bank’s regulatory call reports for the relevant periods.
|
•
|
Provision for unfunded lending commitments
|
•
|
Debt extinguishment costs
|
•
|
OREO expenses
|
•
|
Severance or other appropriate restructuring costs
|
•
|
Core Deposit Intangible expenses
|
•
|
Other income and/or expense items as deemed appropriate
|
•
|
Fair value and non-hedge derivative income (losses)
|
•
|
Equity securities gains (losses)
|
•
|
Fixed income securities gains (losses)
|
•
|
Net impairment losses on investment securities
|
•
|
FHLB/Federal Reserve dividends
|
•
|
BOLI gains/losses on sales of assets
|
4)
|
Other Administrative Provisions
|
(1)
|
This is a discretionary Plan governed and interpreted by the Committee, whose decisions shall be final
. The intent of the Plan is to fairly reward Participants for increasing shareholder value. If any adjustments need to be made to allow this Plan to accomplish its purpose, the Committee in its sole discretion can make those adjustments.
|
(2)
|
The Committee may, at its sole discretion, alter the terms of the Plan at any time during an Award Period.
|
(3)
|
Participants will not vest in any benefits available under the Plan until any payments hereunder are made after the conclusion of the Award Period.
|
(4)
|
A Participant must be employed by the Company or one of its affiliates at the time payment is made in order to receive a payout of Participant’s Unit award and if Participant ceases to be so employed at any time Participant’s Unit award shall automatically be forfeited and cancelled without consideration and without further action by Participant; provided, however, that
|
(i)
|
In the event of Participant’s termination by the Company or an affiliate or normal or early retirement, management or, if Participant is a member of the Executive Management Committee (or “EMC”), the Committee shall have the discretion to make a “Pro Rata Adjustment” to Participant’s Unit award, provided further that notwithstanding the foregoing any such adjusted Unit award shall automatically be forfeited and cancelled without consideration and without further action by Participant immediately upon (x) Participant’s commencement of, or agreement to commence, employment with or provision of services (whether as a director, consultant or otherwise) to another company that is in the financial services industry unless such employment or provision of services is specifically approved by management or the Committee, as the case may be, (y) Participant making any derogatory or damaging statements (verbally, in writing or otherwise) about the Company or any of its affiliates, the management or the board of directors of the Company or any affiliate, the products, services or business condition of the Company or any affiliate in any public way to anyone who could make those statements public or to customers of, vendors to or counterparties of the Company or any affiliate, or (z) Participant violating any duty of confidentiality owed to the Company or its affiliates under the policies or procedures of the Company and its affiliates, including the Company’s employee handbook, code of conduct and similar materials, or under federal or state
|
(ii)
|
In the event of Participant’s “Termination of Employment” by reason of Participant’s death or “Disability”, a Pro Rata Adjustment shall be made to Participant’s unit award.
|
(5)
|
The Company shall retain the right to withhold payment of incentives otherwise earned under this Plan to any individual Participant or to all Participants as a group in the event of a significant deterioration in the Company’s or the Bank’s financial condition, if so required by regulatory authorities, or for any other reason considered valid by the Board in its sole discretion including but not limited to those set out in the Company’s Incentive Compensation Clawback Policy as in effect at any time during or subsequent to the Award Period.
|
(6)
|
The terms of this plan are subject to and limited by applicable law, including, without limitation, the Sarbanes Oxley Act of 2002, the Dodd-Frank Act, and regulations or guidance issued by the Board of Governors of the Federal Reserve System or other regulatory agencies.
|
(7)
|
Designation as a Participant in the Plan does not create a contract of employment for any specified time, nor shall such act to alter or amend the Company’s “at-will” policy of employment.
|
(8)
|
In the event a Participant transfers within Zions Bancorporation during the Award Period, management or, if Participant is a member of the EMC, the Committee shall have the discretion to maintain such Participant’s full Unit award under this plan, to divide and allocate such full award between Zions entities with which Participant has been employed during the
|
(9)
|
In the event of a change in control of the Company (as defined in the Company’s Change in Control Agreements), the Plan will be terminated and payments shall be made in accordance with the provisions of section 3 (b) of the Change in Control Agreements, provided that the reference in Section 3(b) to “average annual growth in Earnings per Share and the average Tangible Return on Equity” shall be deemed to refer to the award determination methodology set forth in this plan.
|
(10)
|
This document is intended to provide a guideline for the creation and distribution of incentive compensation. Nothing herein creates a contractual obligation binding on the Board or the Committee, and no Participant shall have any legal rights with respect to an Award until such Award is distributed.
|
5.17
|
Temporary Election Window for Immediate Distribution of Accrued Benefit.
An Eligible Terminated Participant who satisfies the requirements of this Section and who so elects during the Temporary Election Window, shall be entitled to receive an immediate distribution of the Eligible Terminated Participant’s Accrued Benefit according to the provisions of this Section.
|
(a)
|
During the temporary election window period (“Election Window”), an Eligible Terminated Participant may elect to receive payment of the Accrued Benefit (pension) to which the Eligible Terminated Participant is entitled under the Plan. The benefit payment shall be made in the form of a single sum payment, subject to the right of the Eligible Terminated Participant to elect receipt of the accrued benefit instead in the form of an annuity as described in subsection (c).
|
(b)
|
The amount of the single sum payment (or present value of the annuity payments, if elected) will be calculated using the Applicable Mortality Table and Applicable
|
(c)
|
If an Eligible Terminated Participant qualifies to receive the single sum payment in November, 2017, he or she may, in lieu of the single sum payment, elect to receive distribution in the form of a single life annuity for the life of the Eligible Terminated Participant or, if the Eligible Terminated Participant is married on the date the Election Window starts, in the form of a joint and survivor annuity with either a 50% or 75% survivor benefit to the Eligible Terminated Participant’s surviving spouse. No other benefit distribution options shall be available to an Eligible Terminated Participant under this Election Window. An Eligible Terminated Participant who is married at the start of the Election Window must obtain spousal consent to elect a form of benefit other than the available joint and survivor annuity (for which spousal consent is not required) in accordance with the Plan's normal rules.
|
(d)
|
For purposes of this Section, the following terms shall be defined as set forth below:
|
(1)
|
“Eligible Terminated Participant” means a Participant whose Termination of Employment occurred any time prior to July 1, 2017, and who has not yet commenced receiving payment of his or her benefit, even if the Participant has not yet otherwise met any other conditions required by the Plan to commence payment, but in all events excluding any Participant whose date of Termination of Employment is on or after July 1, 2017, or who attains his or her Normal Retirement Date or Early Retirement Date prior to November 1, 2017, whether or not he or she has commenced receiving distribution of his or her Accrued Benefit.
|
(2)
|
"Election Window" shall mean the period beginning on August 1, 2017, and ending on November 1, 2017. All forms necessary and required to be signed and submitted in order to elect the benefit provided under this Election Window must be postmarked no later than November 1, 2017, to be considered timely, or if electronic submission is available, delivered no later than midnight, Mountain Time on November 1, 2017. No one may elect a single sum payment or any early commencement of payment or distribution not otherwise authorized under the terms of the Plan after the close of the Election Window.
|
(3)
|
An alternate payee entitled to a separate interest in a Participant's accrued benefit under a qualified domestic relations order shall be treated as an Eligible Terminated Participant if the QDRO has been approved no later than October 1, 2017, but only if the terms of the QDRO accommodate participation by the alternate payee in the Election Window (even if the alternate payee would not otherwise be eligible for payment, so long as the order does not prohibit early payment).
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Zions Bancorporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Harris H. Simmons
|
|
Harris H. Simmons, Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Zions Bancorporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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/s/ Paul E. Burdiss
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Paul E. Burdiss, Executive Vice President and Chief Financial Officer
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/s/ Harris H. Simmons
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Name:
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Harris H. Simmons
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Title:
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Chairman and Chief Executive Officer
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/s/ Paul E. Burdiss
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Name:
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Paul E. Burdiss
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Title:
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Executive Vice President and Chief Financial Officer
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