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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UNITED STATES OF AMERICA
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87-0189025
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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
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 ($0.001 par value) outstanding at October 31, 2018
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192,185,109 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, National Association and its subsidiaries (collectively “Zions Bancorporation, N.A.,” “the Bank,” “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,” and the negative thereof and similar words and expressions.
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•
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the Bank’s ability to successfully execute its business plans, manage its risks, and achieve its objectives, including its operating leverage goals and its capital plan;
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•
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risks and uncertainties related to the ability to obtain shareholder and regulatory approvals, or the possibility that such approvals may be delayed;
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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 imbalance in the United States (“U.S.”) 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 Bank conducts its operations, including without limitation rates of business formation and growth, commercial and residential real estate development, real estate prices, agricultural-related commodity 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, commodities, including availability, market liquidity levels, and pricing;
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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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the rate of change of the Bank’s interest-sensitive assets and liabilities relative to changes in benchmark interest rates;
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•
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the impact of acquisitions, dispositions, and corporate restructurings;
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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 United States Department of Treasury, the Office of the Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (“FDIC”), the Securities and Exchange Commission, and the Consumer Financial Protection Bureau (“CFPB”);
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•
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the impact of executive compensation rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and banking regulations, which may impact the ability of the Bank 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, 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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new legal claims against the Bank, 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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economies of scale attendant to the development of digital and other technologies by much larger bank and non-bank competitors, and the possible entry of very large technology “platform” companies into the financial services business;
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•
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inflation and deflation;
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•
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the Bank’s implementation of new technologies;
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•
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the Bank’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 Bank’s operations or business;
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•
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the Bank’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 Financial Accounting Standards Board 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.
|
ACL
|
Allowance for Credit Losses
|
ATM
|
Automated Teller Machine
|
AFS
|
Available-for-Sale
|
bps
|
basis points
|
ALCO
|
Asset/Liability Committee
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CB&T
|
California Bank & Trust, a division of Zions Bancorporation, National Association
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ALLL
|
Allowance for Loan and Lease Losses
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CFPB
|
Consumer Financial Protection Bureau
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Amegy
|
Amegy Bank, a division of Zions Bancorporation, National Association
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CLTV
|
Combined Loan-to-Value Ratio
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AOCI
|
Accumulated Other Comprehensive Income
|
CRE
|
Commercial Real Estate
|
ASC
|
Accounting Standards Codification
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
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ASU
|
Accounting Standards Update
|
DTA
|
Deferred Tax Asset
|
EaR
|
Earnings at Risk
|
OREO
|
Other Real Estate Owned
|
ERM
|
Enterprise Risk Management
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OTTI
|
Other-Than-Temporary Impairment
|
EVE
|
Economic Value of Equity at Risk
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PAGA
|
Private Attorney General Act
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FAMC
|
Federal Agricultural Mortgage Corporation, or “Farmer Mac”
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PEI
|
Private Equity Investment
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FDIC
|
Federal Deposit Insurance Corporation
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PPNR
|
Pre-provision Net Revenue
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FTP
|
Funds Transfer Pricing
|
ROC
|
Risk Oversight Committee
|
FHLB
|
Federal Home Loan Bank
|
RULC
|
Reserve for Unfunded Lending Commitments
|
FRB
|
Federal Reserve Board
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S&P
|
Standard and Poor's
|
GAAP
|
Generally Accepted Accounting Principles
|
SBA
|
Small Business Administration
|
HECL
|
Home Equity Credit Line
|
SBIC
|
Small Business Investment Company
|
HTM
|
Held-to-Maturity
|
TARP
|
Troubled Asset Relief Program
|
IMG
|
International Manufacturing Group
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TCBW
|
The Commerce Bank of Washington, a division of Zions Bancorporation, National Association
|
LIBOR
|
London Interbank Offered Rate
|
TDR
|
Troubled Debt Restructuring
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Municipalities
|
State and Local Governments
|
Tier 1
|
Common Equity Tier 1 (Basel III)
|
NASDAQ
|
National Association of Securities Dealers Automated Quotations
|
Topic 606
|
ASC Topic 606, “Revenue from Contracts with Customers”
|
NBAZ
|
National Bank of Arizona, a division of Zions Bancorporation, National Association
|
U.S.
|
United States
|
NIM
|
Net Interest Margin
|
Vectra
|
Vectra Bank Colorado, a division of Zions Bancorporation, National Association
|
NSB
|
Nevada State Bank, a division of Zions Bancorporation, National Association
|
Zions Bancorporation, N.A.
|
Zions Bancorporation, National Association
|
OCC
|
Office of the Comptroller of the Currency
|
Zions Bank
|
Zions Bank, a division of Zions Bancorporation, National Association
|
OCI
|
Other Comprehensive Income
|
|
|
|
|
Three Months Ended
|
||||||||||||||
(Dollar amounts in millions)
|
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
September 30,
2017 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings applicable to common shareholders (GAAP)
|
|
$
|
215
|
|
|
$
|
187
|
|
|
$
|
231
|
|
|
$
|
152
|
|
Adjustment, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of core deposit and other intangibles
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Net earnings applicable to common shareholders, excluding the effects of the adjustment, net of tax (non-GAAP)
|
(a)
|
$
|
215
|
|
|
$
|
187
|
|
|
$
|
231
|
|
|
$
|
153
|
|
Average common equity (GAAP)
|
|
$
|
7,024
|
|
|
$
|
7,072
|
|
|
$
|
7,061
|
|
|
$
|
7,230
|
|
Average goodwill and intangibles
|
|
(1,015
|
)
|
|
(1,016
|
)
|
|
(1,016
|
)
|
|
(1,018
|
)
|
||||
Average tangible common equity (non-GAAP)
|
(b)
|
$
|
6,009
|
|
|
$
|
6,056
|
|
|
$
|
6,045
|
|
|
$
|
6,212
|
|
Number of days in quarter
|
(c)
|
92
|
|
|
91
|
|
|
90
|
|
|
92
|
|
||||
Number of days in year
|
(d)
|
365
|
|
|
365
|
|
|
365
|
|
|
365
|
|
||||
Return on average tangible common equity (non-GAAP)
|
(a/b/c)*d
|
14.2
|
%
|
|
12.4
|
%
|
|
15.5
|
%
|
|
9.8
|
%
|
(Dollar amounts in millions, except per share amounts)
|
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
September 30,
2017 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total shareholders’ equity (GAAP)
|
|
$
|
7,553
|
|
|
$
|
7,621
|
|
|
$
|
7,644
|
|
|
$
|
7,761
|
|
Goodwill and intangible
|
|
(1,015
|
)
|
|
(1,015
|
)
|
|
(1,016
|
)
|
|
(1,017
|
)
|
||||
Tangible equity (non-GAAP)
|
(a)
|
6,538
|
|
|
6,606
|
|
|
6,628
|
|
|
6,744
|
|
||||
Preferred stock
|
|
(566
|
)
|
|
(566
|
)
|
|
(566
|
)
|
|
(566
|
)
|
||||
Tangible common equity (non-GAAP)
|
(b)
|
$
|
5,972
|
|
|
$
|
6,040
|
|
|
$
|
6,062
|
|
|
$
|
6,178
|
|
Total assets (GAAP)
|
|
$
|
66,731
|
|
|
$
|
66,457
|
|
|
$
|
66,481
|
|
|
$
|
65,564
|
|
Goodwill and intangible
|
|
(1,015
|
)
|
|
(1,015
|
)
|
|
(1,016
|
)
|
|
(1,017
|
)
|
||||
Tangible assets (non-GAAP)
|
(c)
|
$
|
65,716
|
|
|
$
|
65,442
|
|
|
$
|
65,465
|
|
|
$
|
64,547
|
|
Common shares outstanding (thousands)
|
(d)
|
192,169
|
|
|
195,392
|
|
|
197,050
|
|
|
199,712
|
|
||||
Tangible equity ratio (non-GAAP)
|
(a/c)
|
9.95
|
%
|
|
10.09
|
%
|
|
10.12
|
%
|
|
10.45
|
%
|
||||
Tangible common equity ratio (non-GAAP)
|
(b/c)
|
9.09
|
%
|
|
9.23
|
%
|
|
9.26
|
%
|
|
9.57
|
%
|
||||
Tangible book value per common share (non-GAAP)
|
(b/d)
|
$
|
31.08
|
|
|
$
|
30.91
|
|
|
$
|
30.76
|
|
|
$
|
30.93
|
|
(Dollar amounts in millions)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
||||||||||||||||||
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
|
December 31,
2017 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninterest expense (GAAP)
|
(a)
|
$
|
420
|
|
|
$
|
428
|
|
|
$
|
413
|
|
|
$
|
1,259
|
|
|
$
|
1,232
|
|
|
$
|
1,649
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Severance costs
|
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
6
|
|
|
7
|
|
||||||
Other real estate expense, net
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Provision for unfunded lending commitments
|
|
—
|
|
|
7
|
|
|
(4
|
)
|
|
—
|
|
|
(6
|
)
|
|
(7
|
)
|
||||||
Amortization of core deposit and other intangibles
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
5
|
|
|
6
|
|
||||||
Restructuring costs
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
4
|
|
||||||
Total adjustments
|
(b)
|
4
|
|
|
8
|
|
|
(1
|
)
|
|
4
|
|
|
7
|
|
|
9
|
|
||||||
Adjusted noninterest expense (non-GAAP)
|
(a-b)=
(c)
|
$
|
416
|
|
|
$
|
420
|
|
|
$
|
414
|
|
|
$
|
1,255
|
|
|
$
|
1,225
|
|
|
$
|
1,640
|
|
Net interest income (GAAP)
|
(d)
|
$
|
565
|
|
|
$
|
548
|
|
|
$
|
522
|
|
|
$
|
1,654
|
|
|
$
|
1,539
|
|
|
$
|
2,065
|
|
Fully taxable-equivalent adjustments
|
(e)
|
5
|
|
|
5
|
|
|
9
|
|
|
16
|
|
|
26
|
|
|
35
|
|
||||||
Taxable-equivalent net interest income (non-GAAP)
1
|
(d+e)=f
|
570
|
|
|
553
|
|
|
531
|
|
|
1,670
|
|
|
1,565
|
|
|
2,100
|
|
||||||
Noninterest income (GAAP)
|
g
|
136
|
|
|
138
|
|
|
139
|
|
|
412
|
|
|
404
|
|
|
544
|
|
||||||
Combined income (non-GAAP)
|
(f+g)=
(h)
|
706
|
|
|
691
|
|
|
670
|
|
|
2,082
|
|
|
1,969
|
|
|
2,644
|
|
||||||
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value and nonhedge derivative income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
(2
|
)
|
||||||
Securities gains (losses), net
|
|
(1
|
)
|
|
1
|
|
|
5
|
|
|
(1
|
)
|
|
13
|
|
|
14
|
|
||||||
Total adjustments
|
(i)
|
(1
|
)
|
|
1
|
|
|
5
|
|
|
1
|
|
|
12
|
|
|
12
|
|
||||||
Adjusted taxable-equivalent revenue (non-GAAP)
|
(h-i)=
(j)
|
$
|
707
|
|
|
$
|
690
|
|
|
$
|
665
|
|
|
$
|
2,081
|
|
|
$
|
1,957
|
|
|
$
|
2,632
|
|
Pre-provision net revenue (PPNR)
|
(h)-(a)
|
$
|
286
|
|
|
$
|
263
|
|
|
$
|
257
|
|
|
$
|
823
|
|
|
$
|
737
|
|
|
$
|
995
|
|
Adjusted PPNR (non-GAAP)
|
(j-c)
|
291
|
|
|
270
|
|
|
251
|
|
|
826
|
|
|
732
|
|
|
992
|
|
||||||
Efficiency ratio (non-GAAP)
|
(c/j)
|
58.8
|
%
|
|
60.9
|
%
|
|
62.3
|
%
|
|
60.3
|
%
|
|
62.6
|
%
|
|
62.3
|
%
|
|
Three Months Ended
September 30, 2018 |
|
Three Months Ended
September 30, 2017 |
||||||||||||||||||
(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
|
$
|
1,327
|
|
|
$
|
8
|
|
|
2.25
|
%
|
|
$
|
1,246
|
|
|
$
|
5
|
|
|
1.44
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
848
|
|
|
7
|
|
|
3.52
|
|
|
750
|
|
|
7
|
|
|
3.96
|
|
||||
Available-for-sale
|
14,592
|
|
|
81
|
|
|
2.20
|
|
|
15,197
|
|
|
81
|
|
|
2.12
|
|
||||
Trading account
|
65
|
|
|
1
|
|
|
3.43
|
|
|
43
|
|
|
—
|
|
|
3.73
|
|
||||
Total securities
2
|
15,505
|
|
|
89
|
|
|
2.28
|
|
|
15,990
|
|
|
88
|
|
|
2.21
|
|
||||
Loans held for sale
|
53
|
|
|
1
|
|
|
4.82
|
|
|
52
|
|
|
1
|
|
|
4.29
|
|
||||
Loans and leases
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
23,263
|
|
|
286
|
|
|
4.88
|
|
|
22,261
|
|
|
245
|
|
|
4.36
|
|
||||
Commercial real estate
|
11,009
|
|
|
139
|
|
|
5.01
|
|
|
11,192
|
|
|
126
|
|
|
4.46
|
|
||||
Consumer
|
11,096
|
|
|
113
|
|
|
4.07
|
|
|
10,379
|
|
|
101
|
|
|
3.86
|
|
||||
Total loans and leases
|
45,368
|
|
|
538
|
|
|
4.71
|
|
|
43,832
|
|
|
472
|
|
|
4.27
|
|
||||
Total interest-earning assets
|
62,253
|
|
|
636
|
|
|
4.06
|
|
|
61,120
|
|
|
566
|
|
|
3.67
|
|
||||
Cash and due from banks
|
516
|
|
|
|
|
|
|
767
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(489
|
)
|
|
|
|
|
|
(540
|
)
|
|
|
|
|
||||||||
Goodwill and intangibles
|
1,015
|
|
|
|
|
|
|
1,018
|
|
|
|
|
|
||||||||
Other assets
|
3,079
|
|
|
|
|
|
|
2,974
|
|
|
|
|
|
||||||||
Total assets
|
$
|
66,374
|
|
|
|
|
|
|
$
|
65,339
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
$
|
25,483
|
|
|
23
|
|
|
0.36
|
%
|
|
$
|
25,190
|
|
|
10
|
|
|
0.16
|
%
|
||
Time
|
4,118
|
|
|
15
|
|
|
1.49
|
|
|
2,933
|
|
|
5
|
|
|
0.70
|
|
||||
Total interest-bearing deposits
|
29,601
|
|
|
38
|
|
|
0.52
|
|
|
28,123
|
|
|
15
|
|
|
0.21
|
|
||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds purchased and other short-term borrowings
|
3,917
|
|
|
21
|
|
|
2.09
|
|
|
4,609
|
|
|
14
|
|
|
1.17
|
|
||||
Long-term debt
|
572
|
|
|
7
|
|
|
4.91
|
|
|
383
|
|
|
6
|
|
|
5.71
|
|
||||
Total borrowed funds
|
4,489
|
|
|
28
|
|
|
2.45
|
|
|
4,992
|
|
|
20
|
|
|
1.52
|
|
||||
Total interest-bearing liabilities
|
34,090
|
|
|
66
|
|
|
0.77
|
|
|
33,115
|
|
|
35
|
|
|
0.41
|
|
||||
Noninterest-bearing deposits
|
23,974
|
|
|
|
|
|
|
23,798
|
|
|
|
|
|
||||||||
Total deposits
4
and interest-bearing liabilities
|
58,064
|
|
|
66
|
|
|
0.45
|
|
|
56,913
|
|
|
35
|
|
|
0.23
|
|
||||
Other liabilities
|
720
|
|
|
|
|
|
|
630
|
|
|
|
|
|
||||||||
Total liabilities
|
58,784
|
|
|
|
|
|
|
57,543
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
566
|
|
|
|
|
|
|
566
|
|
|
|
|
|
||||||||
Common equity
|
7,024
|
|
|
|
|
|
|
7,230
|
|
|
|
|
|
||||||||
Total shareholders’ equity
|
7,590
|
|
|
|
|
|
|
7,796
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
66,374
|
|
|
|
|
|
|
$
|
65,339
|
|
|
|
|
|
||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.29
|
%
|
|
|
|
|
|
3.26
|
%
|
||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
570
|
|
|
3.63
|
%
|
|
|
|
$
|
531
|
|
|
3.45
|
%
|
1
|
Rates are calculated using amounts in thousands and taxable-equivalent rates used where applicable. The taxable-equivalent rates used are the rates that were applicable at the time of each respective reporting period.
|
2
|
Quarter-to-date interest on total securities includes
$35 million
and
$34 million
of taxable equivalent premium amortization, as of
September 30, 2018
and
September 30, 2017
, respectively.
|
3
|
Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
|
|
Nine Months Ended
September 30, 2018 |
|
Nine Months Ended
September 30, 2017 |
||||||||||||||||||
(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
|
$
|
1,379
|
|
|
$
|
20
|
|
|
1.98
|
%
|
|
$
|
1,598
|
|
|
$
|
14
|
|
|
1.15
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity
|
806
|
|
|
22
|
|
|
3.55
|
|
|
795
|
|
|
23
|
|
|
3.94
|
|
||||
Available-for-sale
|
14,760
|
|
|
240
|
|
|
2.17
|
|
|
14,873
|
|
|
236
|
|
|
2.12
|
|
||||
Trading account
|
116
|
|
|
3
|
|
|
3.92
|
|
|
61
|
|
|
2
|
|
|
3.61
|
|
||||
Total securities
2
|
15,682
|
|
|
265
|
|
|
2.26
|
|
|
15,729
|
|
|
261
|
|
|
2.22
|
|
||||
Loans held for sale
|
59
|
|
|
2
|
|
|
4.31
|
|
|
95
|
|
|
2
|
|
|
3.42
|
|
||||
Loans and leases
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
23,193
|
|
|
825
|
|
|
4.75
|
|
|
21,920
|
|
|
712
|
|
|
4.34
|
|
||||
Commercial real estate
|
11,049
|
|
|
403
|
|
|
4.88
|
|
|
11,222
|
|
|
377
|
|
|
4.49
|
|
||||
Consumer
|
10,917
|
|
|
326
|
|
|
4.00
|
|
|
10,076
|
|
|
289
|
|
|
3.84
|
|
||||
Total loans and leases
|
45,159
|
|
|
1,554
|
|
|
4.60
|
|
|
43,218
|
|
|
1,378
|
|
|
4.26
|
|
||||
Total interest-earning assets
|
62,279
|
|
|
1,841
|
|
|
3.95
|
|
|
60,640
|
|
|
1,655
|
|
|
3.65
|
|
||||
Cash and due from banks
|
551
|
|
|
|
|
|
|
844
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(497
|
)
|
|
|
|
|
|
(551
|
)
|
|
|
|
|
||||||||
Goodwill and intangibles
|
1,016
|
|
|
|
|
|
|
1,020
|
|
|
|
|
|
||||||||
Other assets
|
3,066
|
|
|
|
|
|
|
2,967
|
|
|
|
|
|
||||||||
Total assets
|
$
|
66,415
|
|
|
|
|
|
|
$
|
64,920
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and money market
|
$
|
25,420
|
|
|
51
|
|
|
0.27
|
%
|
|
$
|
25,515
|
|
|
28
|
|
|
0.15
|
%
|
||
Time
|
3,738
|
|
|
36
|
|
|
1.27
|
|
|
2,946
|
|
|
15
|
|
|
0.65
|
|
||||
Total interest-bearing deposits
|
29,158
|
|
|
87
|
|
|
0.40
|
|
|
28,461
|
|
|
43
|
|
|
0.20
|
|
||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds purchased and other short-term borrowings
|
4,844
|
|
|
66
|
|
|
1.82
|
|
|
3,951
|
|
|
29
|
|
|
0.98
|
|
||||
Long-term debt
|
447
|
|
|
18
|
|
|
5.42
|
|
|
428
|
|
|
18
|
|
|
5.81
|
|
||||
Total borrowed funds
|
5,291
|
|
|
84
|
|
|
2.12
|
|
|
4,379
|
|
|
47
|
|
|
1.45
|
|
||||
Total interest-bearing liabilities
|
34,449
|
|
|
171
|
|
|
0.66
|
|
|
32,840
|
|
|
90
|
|
|
0.37
|
|
||||
Noninterest-bearing deposits
|
23,669
|
|
|
|
|
|
|
23,694
|
|
|
|
|
|
||||||||
Total deposits
4
and interest-bearing liabilities
|
58,118
|
|
|
171
|
|
|
0.39
|
|
|
56,534
|
|
|
90
|
|
|
0.21
|
|
||||
Other liabilities
|
679
|
|
|
|
|
|
|
609
|
|
|
|
|
|
||||||||
Total liabilities
|
58,797
|
|
|
|
|
|
|
57,143
|
|
|
|
|
|
||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
566
|
|
|
|
|
|
|
653
|
|
|
|
|
|
||||||||
Common equity
|
7,052
|
|
|
|
|
|
|
7,124
|
|
|
|
|
|
||||||||
Total shareholders’ equity
|
7,618
|
|
|
|
|
|
|
7,777
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
66,415
|
|
|
|
|
|
|
$
|
64,920
|
|
|
|
|
|
||||||
Spread on average interest-bearing funds
|
|
|
|
|
3.29
|
%
|
|
|
|
|
|
3.28
|
%
|
||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets
|
|
|
$
|
1,670
|
|
|
3.59
|
%
|
|
|
|
$
|
1,565
|
|
|
3.45
|
%
|
1
|
Rates are calculated using amounts in thousands and taxable-equivalent rates used where applicable. The taxable-equivalent rates used are the rates that were applicable at the time of each respective reporting period.
|
2
|
Year-to-date interest on total securities includes
$104 million
and
$101 million
of taxable equivalent premium amortization, as of
September 30, 2018
and
September 30, 2017
, respectively.
|
3
|
Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
|
|
Three Months Ended
September 30, |
|
Amount
change
|
|
Percent
change
|
|
Nine Months Ended
September 30, |
|
Amount
change
|
|
Percent
change
|
||||||||||||||||||
(Dollar amounts in millions)
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service charges and fees on deposit accounts
|
$
|
42
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
125
|
|
|
$
|
127
|
|
|
$
|
(2
|
)
|
|
(2
|
)%
|
Other service charges, commissions and fees
|
59
|
|
|
55
|
|
|
4
|
|
|
7
|
|
|
168
|
|
|
160
|
|
|
8
|
|
|
5
|
|
||||||
Wealth management and trust income
|
12
|
|
|
11
|
|
|
1
|
|
|
9
|
|
|
38
|
|
|
30
|
|
|
8
|
|
|
27
|
|
||||||
Loan sales and servicing income
|
5
|
|
|
6
|
|
|
(1
|
)
|
|
(17
|
)
|
|
18
|
|
|
19
|
|
|
(1
|
)
|
|
(5
|
)
|
||||||
Capital markets and foreign exchange
|
7
|
|
|
8
|
|
|
(1
|
)
|
|
(13
|
)
|
|
23
|
|
|
21
|
|
|
2
|
|
|
10
|
|
||||||
Customer-related fees
|
125
|
|
|
122
|
|
|
3
|
|
|
2
|
|
|
372
|
|
|
357
|
|
|
15
|
|
|
4
|
|
||||||
Dividends and other investment income
|
11
|
|
|
9
|
|
|
2
|
|
|
22
|
|
|
34
|
|
|
31
|
|
|
3
|
|
|
10
|
|
||||||
Securities gains (losses), net
|
(1
|
)
|
|
5
|
|
|
(6
|
)
|
|
(120
|
)
|
|
(1
|
)
|
|
13
|
|
|
(14
|
)
|
|
(108
|
)
|
||||||
Other
|
1
|
|
|
3
|
|
|
(2
|
)
|
|
(67
|
)
|
|
7
|
|
|
3
|
|
|
4
|
|
|
133
|
|
||||||
Total noninterest income
|
$
|
136
|
|
|
$
|
139
|
|
|
$
|
(3
|
)
|
|
(2
|
)
|
|
$
|
412
|
|
|
$
|
404
|
|
|
$
|
8
|
|
|
2
|
|
|
Three Months Ended
September 30, |
|
Amount
change
|
|
Percent
change
|
|
Nine Months Ended
September 30, |
|
Amount
change
|
|
Percent
change
|
||||||||||||||||||
(Dollar amounts in millions)
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Salaries and employee benefits
|
$
|
264
|
|
|
$
|
251
|
|
|
$
|
13
|
|
|
5
|
%
|
|
$
|
800
|
|
|
$
|
753
|
|
|
$
|
47
|
|
|
6
|
%
|
Occupancy, net
|
33
|
|
|
35
|
|
|
(2
|
)
|
|
(6
|
)
|
|
96
|
|
|
101
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Furniture, equipment and software, net
|
30
|
|
|
32
|
|
|
(2
|
)
|
|
(6
|
)
|
|
95
|
|
|
96
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Other real estate expense, net
|
1
|
|
|
(1
|
)
|
|
2
|
|
|
200
|
|
|
1
|
|
|
(1
|
)
|
|
2
|
|
|
200
|
|
||||||
Credit-related expense
|
5
|
|
|
7
|
|
|
(2
|
)
|
|
(29
|
)
|
|
19
|
|
|
23
|
|
|
(4
|
)
|
|
(17
|
)
|
||||||
Provision for unfunded lending commitments
|
—
|
|
|
(4
|
)
|
|
4
|
|
|
100
|
|
|
—
|
|
|
(6
|
)
|
|
6
|
|
|
100
|
|
||||||
Professional and legal services
|
12
|
|
|
15
|
|
|
(3
|
)
|
|
(20
|
)
|
|
37
|
|
|
43
|
|
|
(6
|
)
|
|
(14
|
)
|
||||||
Advertising
|
8
|
|
|
6
|
|
|
2
|
|
|
33
|
|
|
20
|
|
|
17
|
|
|
3
|
|
|
18
|
|
||||||
FDIC premiums
|
18
|
|
|
15
|
|
|
3
|
|
|
20
|
|
|
44
|
|
|
40
|
|
|
4
|
|
|
10
|
|
||||||
Other
|
49
|
|
|
57
|
|
|
(8
|
)
|
|
(14
|
)
|
|
147
|
|
|
166
|
|
|
(19
|
)
|
|
(11
|
)
|
||||||
Total noninterest expense
|
$
|
420
|
|
|
$
|
413
|
|
|
$
|
7
|
|
|
2
|
|
|
$
|
1,259
|
|
|
$
|
1,232
|
|
|
$
|
27
|
|
|
2
|
|
Adjusted noninterest expense
1
|
$
|
416
|
|
|
$
|
414
|
|
|
$
|
2
|
|
|
—
|
|
|
$
|
1,255
|
|
|
$
|
1,225
|
|
|
$
|
30
|
|
|
2
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(In millions)
|
Par value
|
|
Amortized
cost
|
|
Estimated
fair
value
|
|
Par value
|
|
Amortized
cost
|
|
Estimated
fair
value
|
||||||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
$
|
751
|
|
|
$
|
751
|
|
|
$
|
734
|
|
|
$
|
771
|
|
|
$
|
770
|
|
|
$
|
762
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
25
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
25
|
|
||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
1,482
|
|
|
1,480
|
|
|
1,448
|
|
|
1,830
|
|
|
1,830
|
|
|
1,818
|
|
||||||
Agency guaranteed mortgage-backed securities
|
10,004
|
|
|
10,159
|
|
|
9,824
|
|
|
9,605
|
|
|
9,798
|
|
|
9,666
|
|
||||||
Small Business Administration loan-backed securities
|
1,888
|
|
|
2,069
|
|
|
2,020
|
|
|
2,007
|
|
|
2,227
|
|
|
2,222
|
|
||||||
Municipal securities
|
1,182
|
|
|
1,313
|
|
|
1,284
|
|
|
1,193
|
|
|
1,336
|
|
|
1,334
|
|
||||||
Other debt securities
|
25
|
|
|
25
|
|
|
24
|
|
|
25
|
|
|
25
|
|
|
24
|
|
||||||
Total available-for-sale debt securities
|
14,606
|
|
|
15,071
|
|
|
14,625
|
|
|
14,685
|
|
|
15,241
|
|
|
15,089
|
|
||||||
Money market mutual funds and other
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
72
|
|
|
72
|
|
||||||
Total available-for-sale
|
14,606
|
|
|
15,071
|
|
|
14,625
|
|
|
14,757
|
|
|
15,313
|
|
|
15,161
|
|
||||||
Total
|
$
|
15,357
|
|
|
$
|
15,822
|
|
|
$
|
15,359
|
|
|
$
|
15,528
|
|
|
$
|
16,083
|
|
|
$
|
15,923
|
|
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Loans and leases
|
$
|
1,563
|
|
|
$
|
1,271
|
|
Held-to-maturity – municipal securities
|
751
|
|
|
770
|
|
||
Available-for-sale – municipal securities
|
1,285
|
|
|
1,334
|
|
||
Trading account – municipal securities
|
47
|
|
|
146
|
|
||
Unfunded lending commitments
|
147
|
|
|
152
|
|
||
Total direct exposure to municipalities
|
$
|
3,793
|
|
|
$
|
3,673
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
(Dollar amounts in millions)
|
Amount
|
|
% of
total loans
|
|
Amount
|
|
% of
total loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
14,096
|
|
|
31
|
%
|
|
$
|
14,003
|
|
|
31
|
%
|
Leasing
|
332
|
|
|
1
|
|
|
364
|
|
|
1
|
|
||
Owner-occupied
|
7,548
|
|
|
17
|
|
|
7,288
|
|
|
16
|
|
||
Municipal
|
1,563
|
|
|
3
|
|
|
1,271
|
|
|
3
|
|
||
Total commercial
|
23,539
|
|
|
52
|
|
|
22,926
|
|
|
51
|
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
2,295
|
|
|
5
|
|
|
2,021
|
|
|
5
|
|
||
Term
|
8,752
|
|
|
19
|
|
|
9,103
|
|
|
20
|
|
||
Total commercial real estate
|
11,047
|
|
|
24
|
|
|
11,124
|
|
|
25
|
|
||
Consumer:
|
|
|
|
|
|
|
|
||||||
Home equity credit line
|
2,884
|
|
|
6
|
|
|
2,777
|
|
|
6
|
|
||
1-4 family residential
|
7,039
|
|
|
16
|
|
|
6,662
|
|
|
15
|
|
||
Construction and other consumer real estate
|
644
|
|
|
1
|
|
|
597
|
|
|
1
|
|
||
Bankcard and other revolving plans
|
483
|
|
|
1
|
|
|
509
|
|
|
1
|
|
||
Other
|
174
|
|
|
—
|
|
|
185
|
|
|
1
|
|
||
Total consumer
|
11,224
|
|
|
24
|
|
|
10,730
|
|
|
24
|
|
||
Total net loans
|
$
|
45,810
|
|
|
100
|
%
|
|
$
|
44,780
|
|
|
100
|
%
|
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Bank-owned life insurance
|
$
|
516
|
|
|
$
|
506
|
|
Federal Home Loan Bank stock
|
126
|
|
|
154
|
|
||
Federal Reserve stock
|
185
|
|
|
184
|
|
||
Farmer Mac stock
|
52
|
|
|
43
|
|
||
SBIC investments
|
134
|
|
|
127
|
|
||
Non-SBIC investment funds
|
11
|
|
|
12
|
|
||
Other
|
3
|
|
|
3
|
|
||
Total other noninterest-bearing investments
|
$
|
1,027
|
|
|
$
|
1,029
|
|
|
September 30, 2018
|
||||||||||||||
(In millions)
|
Phase 1
|
|
Phase 2
|
|
Phase 3
|
|
Total
|
||||||||
Core replacement project costs
|
|
|
|
|
|
|
|
||||||||
Total amount capitalized
|
$
|
78
|
|
|
$
|
70
|
|
|
$
|
30
|
|
|
$
|
178
|
|
(Dollar amounts in millions)
|
September 30,
2018 |
|
Percent
guaranteed |
|
December 31,
2017 |
|
Percent
guaranteed |
||||||
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
544
|
|
|
76
|
%
|
|
$
|
507
|
|
|
75
|
%
|
Commercial real estate
|
13
|
|
|
77
|
|
|
14
|
|
|
75
|
|
||
Consumer
|
8
|
|
|
100
|
|
|
16
|
|
|
92
|
|
||
Total loans
|
$
|
565
|
|
|
76
|
|
|
$
|
537
|
|
|
76
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
(Dollar amounts in millions)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Real estate, rental and leasing
|
$
|
2,563
|
|
|
11
|
%
|
|
$
|
2,807
|
|
|
12
|
%
|
Retail trade
1
|
2,403
|
|
|
10
|
|
|
2,257
|
|
|
10
|
|
||
Manufacturing
|
2,178
|
|
|
9
|
|
|
2,116
|
|
|
9
|
|
||
Finance and insurance
|
1,910
|
|
|
8
|
|
|
2,026
|
|
|
9
|
|
||
Healthcare and social assistance
|
1,648
|
|
|
7
|
|
|
1,556
|
|
|
7
|
|
||
Wholesale trade
|
1,573
|
|
|
7
|
|
|
1,543
|
|
|
7
|
|
||
Transportation and warehousing
|
1,332
|
|
|
6
|
|
|
1,343
|
|
|
6
|
|
||
Construction
|
1,227
|
|
|
5
|
|
|
1,094
|
|
|
5
|
|
||
Mining, quarrying, and oil and gas extraction
|
1,144
|
|
|
5
|
|
|
1,010
|
|
|
4
|
|
||
Utilities
2
|
1,015
|
|
|
4
|
|
|
905
|
|
|
4
|
|
||
Hospitality and food services
|
953
|
|
|
4
|
|
|
932
|
|
|
4
|
|
||
Other Services (except Public Administration)
|
890
|
|
|
4
|
|
|
896
|
|
|
4
|
|
||
Professional, scientific, and technical services
|
858
|
|
|
4
|
|
|
879
|
|
|
4
|
|
||
Other
3
|
3,845
|
|
|
16
|
|
|
3,562
|
|
|
15
|
|
||
Total
|
$
|
23,539
|
|
|
100
|
%
|
|
$
|
22,926
|
|
|
100
|
%
|
1
|
At
September 30, 2018
, 84% of retail trade consist of motor vehicle and parts dealers, gas stations, grocery stores, building material suppliers, and direct-to-consumer retailers.
|
2
|
Includes primarily utilities, power, and renewable energy.
|
3
|
No other industry group exceeds 3.5%.
|
(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
|
|
9/30/2018
|
|
$
|
1,109
|
|
|
$
|
2,874
|
|
|
$
|
496
|
|
|
$
|
562
|
|
|
$
|
1,429
|
|
|
$
|
1,393
|
|
|
$
|
395
|
|
|
$
|
494
|
|
|
$
|
8,752
|
|
|
79.2
|
%
|
% of loan type
|
|
|
|
12.7
|
%
|
|
32.9
|
%
|
|
5.7
|
%
|
|
6.4
|
%
|
|
16.3
|
%
|
|
15.9
|
%
|
|
4.5
|
%
|
|
5.6
|
%
|
|
100.0
|
%
|
|
|
||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
30-89 days
|
|
9/30/2018
|
|
—
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
|
||||||||||
|
|
12/31/2017
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|
0.1
|
%
|
|
|
||||||||||
≥ 90 days
|
|
9/30/2018
|
|
—
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
|
||||||||||
|
|
12/31/2017
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
0.7
|
%
|
|
0.1
|
%
|
|
|
||||||||||
Accruing loans past due 90 days or more
|
|
9/30/2018
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
|
12/31/2017
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
|
||||||||||
Nonaccrual loans
|
|
9/30/2018
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
46
|
|
|
|
|
|
|
12/31/2017
|
|
4
|
|
|
7
|
|
|
1
|
|
|
2
|
|
|
17
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
36
|
|
|
|
||||||||||
Residential construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance outstanding
|
|
9/30/2018
|
|
$
|
39
|
|
|
$
|
316
|
|
|
$
|
71
|
|
|
$
|
3
|
|
|
$
|
202
|
|
|
$
|
51
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
688
|
|
|
6.2
|
%
|
% of loan type
|
|
|
|
5.7
|
%
|
|
45.9
|
%
|
|
10.3
|
%
|
|
0.4
|
%
|
|
29.4
|
%
|
|
7.4
|
%
|
|
0.3
|
%
|
|
0.6
|
%
|
|
100.0
|
%
|
|
|
||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
30-89 days
|
|
9/30/2018
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
|
|
12/31/2017
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
0.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
|
||||||||||
≥ 90 days
|
|
9/30/2018
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
|
|
12/31/2017
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
Accruing loans past due 90 days or more
|
|
9/30/2018
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Nonaccrual loans
|
|
9/30/2018
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Commercial construction and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance outstanding
|
|
9/30/2018
|
|
$
|
202
|
|
|
$
|
273
|
|
|
$
|
54
|
|
|
$
|
82
|
|
|
$
|
457
|
|
|
$
|
373
|
|
|
$
|
131
|
|
|
$
|
35
|
|
|
$
|
1,607
|
|
|
14.6
|
%
|
% of loan type
|
|
|
|
12.5
|
%
|
|
17.0
|
%
|
|
3.4
|
%
|
|
5.1
|
%
|
|
28.4
|
%
|
|
23.2
|
%
|
|
8.2
|
%
|
|
2.2
|
%
|
|
100.0
|
%
|
|
|
||||||||||
Delinquency rates
2
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
30-89 days
|
|
9/30/2018
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
|
|
12/31/2017
|
|
0.1
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
|
||||||||||
≥ 90 days
|
|
9/30/2018
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
||||||||||
|
|
12/31/2017
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
|
||||||||||
Accruing loans past due 90 days or more
|
|
9/30/2018
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Nonaccrual loans
|
|
9/30/2018
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
12/31/2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
||||||||||
Total construction and land development
|
|
9/30/2018
|
|
$
|
241
|
|
|
$
|
589
|
|
|
$
|
125
|
|
|
$
|
85
|
|
|
$
|
659
|
|
|
$
|
424
|
|
|
$
|
133
|
|
|
$
|
39
|
|
|
$
|
2,295
|
|
|
|
|
Total commercial real estate
|
|
9/30/2018
|
|
$
|
1,350
|
|
|
$
|
3,463
|
|
|
$
|
621
|
|
|
$
|
647
|
|
|
$
|
2,088
|
|
|
$
|
1,817
|
|
|
$
|
528
|
|
|
$
|
533
|
|
|
$
|
11,047
|
|
|
100.0
|
%
|
1
|
No other geography exceeds
$91 million
for all three loan types.
|
2
|
Delinquency rates include nonaccrual loans.
|
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Secured by first deeds of trust
|
$
|
1,455
|
|
|
$
|
1,406
|
|
Secured by second (or junior) liens
|
1,429
|
|
|
1,371
|
|
||
Total
|
$
|
2,884
|
|
|
$
|
2,777
|
|
(Dollar amounts in millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Nonaccrual loans
1
|
$
|
288
|
|
|
$
|
414
|
|
Other real estate owned
|
4
|
|
|
4
|
|
||
Total nonperforming assets
|
$
|
292
|
|
|
$
|
418
|
|
Ratio of nonperforming assets to net loans and leases
1
and other real estate owned
|
0.64
|
%
|
|
0.93
|
%
|
||
Accruing loans past due 90 days or more
|
$
|
12
|
|
|
$
|
22
|
|
Ratio of accruing loans past due 90 days or more to loans and leases
1
|
0.03
|
%
|
|
0.05
|
%
|
||
Nonaccrual loans and accruing loans past due 90 days or more
|
$
|
300
|
|
|
$
|
436
|
|
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans and leases
1
|
0.65
|
%
|
|
0.97
|
%
|
||
Accruing loans past due 30-89 days
|
$
|
87
|
|
|
$
|
120
|
|
Nonaccrual loans
1
current as to principal and interest payments
|
57.4
|
%
|
|
65.9
|
%
|
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Restructured loans – accruing
|
$
|
114
|
|
|
$
|
139
|
|
Restructured loans – nonaccruing
|
90
|
|
|
87
|
|
||
Total
|
$
|
204
|
|
|
$
|
226
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
181
|
|
|
$
|
304
|
|
|
$
|
226
|
|
|
$
|
251
|
|
New identified TDRs and principal increases
|
46
|
|
|
7
|
|
|
115
|
|
|
163
|
|
||||
Payments and payoffs
|
(19
|
)
|
|
(45
|
)
|
|
(107
|
)
|
|
(117
|
)
|
||||
Charge-offs
|
(1
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
(17
|
)
|
||||
No longer reported as TDRs
|
(2
|
)
|
|
—
|
|
|
(20
|
)
|
|
(4
|
)
|
||||
Sales and other
|
(1
|
)
|
|
(14
|
)
|
|
(6
|
)
|
|
(28
|
)
|
||||
Balance at end of period
|
$
|
204
|
|
|
$
|
248
|
|
|
$
|
204
|
|
|
$
|
248
|
|
(Dollar amounts in millions)
|
Nine Months Ended September 30, 2018
|
|
Twelve Months Ended December 31, 2017
|
|
Nine Months Ended September 30, 2017
|
||||||
|
|
|
|
|
|
||||||
Loans and leases outstanding (net of unearned income)
|
$
|
45,810
|
|
|
$
|
44,780
|
|
|
$
|
44,156
|
|
Average loans and leases outstanding (net of unearned income)
|
$
|
45,159
|
|
|
$
|
43,501
|
|
|
$
|
43,218
|
|
Allowance for loan losses:
|
|
|
|
|
|
||||||
Balance at beginning of period
|
$
|
518
|
|
|
$
|
567
|
|
|
$
|
567
|
|
Provision for loan losses
|
(46
|
)
|
|
24
|
|
|
35
|
|
|||
Charge-offs:
|
|
|
|
|
|
||||||
Commercial
|
38
|
|
|
118
|
|
|
98
|
|
|||
Commercial real estate
|
5
|
|
|
9
|
|
|
6
|
|
|||
Consumer
|
13
|
|
|
17
|
|
|
13
|
|
|||
Total
|
56
|
|
|
144
|
|
|
117
|
|
|||
Recoveries:
|
|
|
|
|
|
||||||
Commercial
|
50
|
|
|
46
|
|
|
36
|
|
|||
Commercial real estate
|
8
|
|
|
14
|
|
|
12
|
|
|||
Consumer
|
6
|
|
|
11
|
|
|
8
|
|
|||
Total
|
64
|
|
|
71
|
|
|
56
|
|
|||
Net loan and lease charge-offs (recoveries)
|
(8
|
)
|
|
73
|
|
|
61
|
|
|||
Balance at end of period
|
$
|
480
|
|
|
$
|
518
|
|
|
$
|
541
|
|
Ratio of annualized net charge-offs to average loans and leases
|
(0.02
|
)%
|
|
0.17
|
%
|
|
0.19
|
%
|
|||
Ratio of allowance for loan losses to net loans and leases, at period end
|
1.05
|
%
|
|
1.16
|
%
|
|
1.23
|
%
|
|||
Ratio of allowance for loan losses to nonaccrual loans, at period end
|
167
|
%
|
|
129
|
%
|
|
120
|
%
|
|||
Ratio of allowance for loan losses to nonaccrual loans and accruing loans past due 90 days or more, at period end
|
160
|
%
|
|
122
|
%
|
|
112
|
%
|
|
|
September 30, 2018
|
||||
Product
|
|
Effective duration (unchanged)
|
|
Effective duration (+200 bps)
|
||
|
|
|
|
|
||
Demand deposits
|
|
2.9
|
%
|
|
2.9
|
%
|
Money market
|
|
1.4
|
%
|
|
1.2
|
%
|
Savings and interest-on-checking
|
|
2.6
|
%
|
|
2.3
|
%
|
|
|
September 30, 2018
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+300
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings at Risk
|
|
(2.8
|
)%
|
|
—
|
%
|
|
2.5
|
%
|
|
4.8
|
%
|
|
7.2
|
%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
|
|
December 31, 2017
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+300
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings at Risk
|
|
(2.7
|
)%
|
|
—
|
%
|
|
2.8
|
%
|
|
5.4
|
%
|
|
7.8
|
%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
|
|
September 30, 2018
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+300
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Economic Value of Equity
|
|
1.1
|
%
|
|
—
|
%
|
|
(2.4
|
)%
|
|
(4.3
|
)%
|
|
(6.1
|
)%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
|
|
December 31, 2017
|
|||||||||||||
|
|
Parallel shift in rates (in bps)
1
|
|||||||||||||
Repricing scenario
|
|
-100 bps
|
|
0 bps
|
|
+100 bps
|
|
+200 bps
|
|
+300 bps
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Economic Value of Equity
|
|
0.2
|
%
|
|
—
|
%
|
|
0.5
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
1
|
Assumes rates cannot go below zero in the negative rate shift.
|
CREDIT RATINGS
|
|
|
|
|
|
|
||
as of October 31, 2018:
|
||||||||
Rating agency
|
|
Outlook
|
|
Long-term issuer/senior
debt rating
|
|
Subordinated debt rating
|
|
Short-term debt rating
|
|
|
|
|
|
|
|
|
|
S&P
|
|
Stable
|
|
BBB+
|
|
BBB-
|
|
A-2
|
Moody’s
|
|
Positive
|
|
Baa3
|
|
|
|
P-2
|
Kroll
|
|
Stable
|
|
A-
|
|
BBB
|
|
K2
|
Assumed Zions Bancorporation, N.A. Common Stock Market Price
|
|
Diluted Shares (000s)
|
|||
|
|
|
|||
$
|
35.00
|
|
|
0
|
|
40.00
|
|
|
5,154
|
||
45.00
|
|
|
8,196
|
|
|
50.00
|
|
|
10,630
|
||
55.00
|
|
|
12,621
|
|
|
60.00
|
|
|
14,281
|
|
|
65.00
|
|
|
15,685
|
|
|
September 30,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|||
|
|
|
|
|
|
|||
Tangible common equity ratio
1
|
9.1
|
%
|
|
9.3
|
%
|
|
9.6
|
%
|
Tangible equity ratio
1
|
9.9
|
%
|
|
10.2
|
%
|
|
10.4
|
%
|
Average equity to average assets (three months ended)
|
11.4
|
%
|
|
11.9
|
%
|
|
11.9
|
%
|
Basel III risk-based capital ratios
2
:
|
|
|
|
|
|
|||
Common equity tier 1 capital
|
12.1
|
%
|
|
12.1
|
%
|
|
12.2
|
%
|
Tier 1 leverage
|
10.5
|
%
|
|
10.5
|
%
|
|
10.6
|
%
|
Tier 1 risk-based
|
13.1
|
%
|
|
13.2
|
%
|
|
13.3
|
%
|
Total risk-based
|
14.6
|
%
|
|
14.8
|
%
|
|
15.0
|
%
|
Return on average common equity (three months ended)
|
12.1
|
%
|
|
6.3
|
%
|
|
8.3
|
%
|
Return on average tangible common equity (three months ended)
1
|
14.2
|
%
|
|
7.4
|
%
|
|
9.8
|
%
|
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, NATIONAL ASSOCIATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|||||||
(In millions, shares in thousands)
|
September 30,
2018 |
|
December 31,
2017 |
||||
(Unaudited)
|
|
|
|||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
517
|
|
|
$
|
548
|
|
Money market investments:
|
|
|
|
||||
Interest-bearing deposits
|
590
|
|
|
782
|
|
||
Federal funds sold and security resell agreements
|
560
|
|
|
514
|
|
||
Investment securities:
|
|
|
|
||||
Held-to-maturity, at amortized cost (approximate fair value $734 and $762)
|
751
|
|
|
770
|
|
||
Available-for-sale, at fair value
|
14,625
|
|
|
15,161
|
|
||
Trading account, at fair value
|
176
|
|
|
148
|
|
||
Total investment securities
|
15,552
|
|
|
16,079
|
|
||
Loans held for sale
|
61
|
|
|
44
|
|
||
Loans and leases, net of unearned income and fees
|
45,810
|
|
|
44,780
|
|
||
Less allowance for loan losses
|
480
|
|
|
518
|
|
||
Loans held for investment, net of allowance
|
45,330
|
|
|
44,262
|
|
||
Other noninterest-bearing investments
|
1,027
|
|
|
1,029
|
|
||
Premises, equipment and software, net
|
1,111
|
|
|
1,094
|
|
||
Goodwill and intangibles
|
1,015
|
|
|
1,016
|
|
||
Other real estate owned
|
4
|
|
|
4
|
|
||
Other assets
|
964
|
|
|
916
|
|
||
Total Assets
|
$
|
66,731
|
|
|
$
|
66,288
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
24,067
|
|
|
$
|
23,886
|
|
Interest-bearing:
|
|
|
|
||||
Savings and money market
|
25,462
|
|
|
25,620
|
|
||
Time
|
4,256
|
|
|
3,115
|
|
||
Total deposits
|
53,785
|
|
|
52,621
|
|
||
Federal funds purchased and other short-term borrowings
|
3,780
|
|
|
4,976
|
|
||
Long-term debt
|
879
|
|
|
383
|
|
||
Reserve for unfunded lending commitments
|
58
|
|
|
58
|
|
||
Other liabilities
|
676
|
|
|
571
|
|
||
Total liabilities
|
59,178
|
|
|
58,609
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, without par value; authorized 4,400 shares
|
566
|
|
|
566
|
|
||
Common stock ($0.001 par value; authorized 350,000 shares; issued and outstanding 192,169 and 197,532 shares)
|
—
|
|
|
4,445
|
|
||
Additional paid-in capital
|
4,052
|
|
|
—
|
|
||
Retained earnings
|
3,296
|
|
|
2,807
|
|
||
Accumulated other comprehensive income (loss)
|
(361
|
)
|
|
(139
|
)
|
||
Total shareholders’ equity
|
7,553
|
|
|
7,679
|
|
||
Total liabilities and shareholders’ equity
|
$
|
66,731
|
|
|
$
|
66,288
|
|
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|||||||||||||||
(In millions, except shares and per share amounts)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
537
|
|
|
$
|
468
|
|
|
$
|
1,548
|
|
|
$
|
1,370
|
|
Interest on money market investments
|
8
|
|
|
5
|
|
|
20
|
|
|
14
|
|
||||
Interest on securities
|
86
|
|
|
84
|
|
|
257
|
|
|
246
|
|
||||
Total interest income
|
631
|
|
|
557
|
|
|
1,825
|
|
|
1,630
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
38
|
|
|
15
|
|
|
87
|
|
|
43
|
|
||||
Interest on short- and long-term borrowings
|
28
|
|
|
20
|
|
|
84
|
|
|
48
|
|
||||
Total interest expense
|
66
|
|
|
35
|
|
|
171
|
|
|
91
|
|
||||
Net interest income
|
565
|
|
|
522
|
|
|
1,654
|
|
|
1,539
|
|
||||
Provision for loan losses
|
(11
|
)
|
|
5
|
|
|
(46
|
)
|
|
35
|
|
||||
Net interest income after provision for loan losses
|
576
|
|
|
517
|
|
|
1,700
|
|
|
1,504
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposit accounts
|
42
|
|
|
42
|
|
|
125
|
|
|
127
|
|
||||
Other service charges, commissions and fees
|
59
|
|
|
55
|
|
|
168
|
|
|
160
|
|
||||
Wealth management and trust income
|
12
|
|
|
11
|
|
|
38
|
|
|
30
|
|
||||
Loan sales and servicing income
|
5
|
|
|
6
|
|
|
18
|
|
|
19
|
|
||||
Capital markets and foreign exchange
|
7
|
|
|
8
|
|
|
23
|
|
|
21
|
|
||||
Customer-related fees
|
125
|
|
|
122
|
|
|
372
|
|
|
357
|
|
||||
Dividends and other investment income
|
11
|
|
|
9
|
|
|
34
|
|
|
31
|
|
||||
Securities gains (losses), net
|
(1
|
)
|
|
5
|
|
|
(1
|
)
|
|
13
|
|
||||
Other
|
1
|
|
|
3
|
|
|
7
|
|
|
3
|
|
||||
Total noninterest income
|
136
|
|
|
139
|
|
|
412
|
|
|
404
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
264
|
|
|
251
|
|
|
800
|
|
|
753
|
|
||||
Occupancy, net
|
33
|
|
|
35
|
|
|
96
|
|
|
101
|
|
||||
Furniture, equipment and software, net
|
30
|
|
|
32
|
|
|
95
|
|
|
96
|
|
||||
Other real estate expense, net
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
||||
Credit-related expense
|
5
|
|
|
7
|
|
|
19
|
|
|
23
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(6
|
)
|
||||
Professional and legal services
|
12
|
|
|
15
|
|
|
37
|
|
|
43
|
|
||||
Advertising
|
8
|
|
|
6
|
|
|
20
|
|
|
17
|
|
||||
FDIC premiums
|
18
|
|
|
15
|
|
|
44
|
|
|
40
|
|
||||
Other
|
49
|
|
|
57
|
|
|
147
|
|
|
166
|
|
||||
Total noninterest expense
|
420
|
|
|
413
|
|
|
1,259
|
|
|
1,232
|
|
||||
Income before income taxes
|
292
|
|
|
243
|
|
|
853
|
|
|
676
|
|
||||
Income taxes
|
69
|
|
|
83
|
|
|
195
|
|
|
207
|
|
||||
Net income
|
223
|
|
|
160
|
|
|
658
|
|
|
469
|
|
||||
Preferred stock dividends
|
(8
|
)
|
|
(8
|
)
|
|
(25
|
)
|
|
(30
|
)
|
||||
Preferred stock redemption
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
Net earnings applicable to common shareholders
|
$
|
215
|
|
|
$
|
152
|
|
|
$
|
633
|
|
|
$
|
436
|
|
Weighted average common shares outstanding during the period:
|
|
|
|
|
|
|
|
||||||||
Basic shares (in thousands)
|
192,973
|
|
|
200,332
|
|
|
195,079
|
|
|
201,493
|
|
||||
Diluted shares (in thousands)
|
205,765
|
|
|
209,106
|
|
|
208,657
|
|
|
209,366
|
|
||||
Net earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.11
|
|
|
$
|
0.75
|
|
|
$
|
3.22
|
|
|
$
|
2.14
|
|
Diluted
|
1.04
|
|
|
0.72
|
|
|
3.01
|
|
|
2.06
|
|
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|||||||||||||||
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income for the period
|
$
|
223
|
|
|
$
|
160
|
|
|
$
|
658
|
|
|
$
|
469
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains (losses) on investment securities
|
(45
|
)
|
|
(8
|
)
|
|
(221
|
)
|
|
65
|
|
||||
Net unrealized gains on other noninterest-bearing investments
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
||||
Net unrealized holding gains (losses) on derivative instruments
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Reclassification adjustment for increase in interest income recognized in earnings on derivative instruments
|
1
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
||||
Other comprehensive income (loss)
|
(45
|
)
|
|
(8
|
)
|
|
(222
|
)
|
|
65
|
|
||||
Comprehensive income
|
$
|
178
|
|
|
$
|
152
|
|
|
$
|
436
|
|
|
$
|
534
|
|
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
CONSO
LIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
|
||||||||||||||||||||||||||||
(In millions, except shares
and per share amounts)
|
Preferred
stock
|
|
Common stock
|
|
Accumulated paid-in capital
|
|
Retained earnings
|
|
Accumulated other
comprehensive income (loss)
|
|
Total
shareholders’ equity
|
|||||||||||||||||
Shares
(in thousands)
|
|
Amount
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2017
|
$
|
566
|
|
|
197,532
|
|
|
$
|
4,445
|
|
|
$
|
—
|
|
|
$
|
2,807
|
|
|
|
$
|
(139
|
)
|
|
|
$
|
7,679
|
|
Net income for the period
|
|
|
|
|
|
|
|
|
658
|
|
|
|
|
|
|
658
|
|
|||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
(222
|
)
|
|
|
(222
|
)
|
|||||||||||
Cumulative effect adjustment, adoption of ASU 2014-09, Revenue from Contracts with Customers
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
1
|
|
|||||||||
Bank common stock repurchased
|
|
|
(8,050
|
)
|
|
(434
|
)
|
|
|
|
|
|
|
|
|
|
(434
|
)
|
||||||||||
Net shares issued from stock warrant exercises
|
|
|
1,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net activity under employee plans and related tax benefits
|
|
|
1,409
|
|
|
41
|
|
|
|
|
|
|
|
|
|
|
41
|
|
||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
|
|
(25
|
)
|
|
|
|
|
|
(25
|
)
|
||||||||||
Dividends on common stock, $0.74 per share
|
|
|
|
|
|
|
|
|
(145
|
)
|
|
|
|
|
|
(145
|
)
|
|||||||||||
Merger of bank holding company into bank
|
|
|
|
|
(4,052
|
)
|
|
4,052
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at September 30, 2018
|
$
|
566
|
|
|
192,169
|
|
|
$
|
—
|
|
|
$
|
4,052
|
|
|
$
|
3,296
|
|
|
|
$
|
(361
|
)
|
|
|
$
|
7,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2016
|
$
|
710
|
|
|
203,085
|
|
|
$
|
4,725
|
|
|
$
|
—
|
|
|
$
|
2,321
|
|
|
|
$
|
(122
|
)
|
|
|
$
|
7,634
|
|
Net income for the period
|
|
|
|
|
|
|
|
|
469
|
|
|
|
|
|
|
469
|
|
|||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
65
|
|
|
|
65
|
|
|||||||||||
Preferred stock redemption
|
(144
|
)
|
|
|
|
2
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
(144
|
)
|
|||||||||
Bank common stock repurchased
|
|
|
|
(4,975
|
)
|
|
(217
|
)
|
|
|
|
|
|
|
|
|
|
(217
|
)
|
|||||||||
Net activity under employee plans and related tax benefits
|
|
|
1,602
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
42
|
|
||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
|
|
(30
|
)
|
|
|
|
|
|
(30
|
)
|
||||||||||
Dividends on common stock, $0.28 per share
|
|
|
|
|
|
|
|
|
(58
|
)
|
|
|
|
|
|
(58
|
)
|
|||||||||||
Balance at September 30, 2017
|
$
|
566
|
|
|
199,712
|
|
|
$
|
4,552
|
|
|
$
|
—
|
|
|
$
|
2,700
|
|
|
|
$
|
(57
|
)
|
|
|
$
|
7,761
|
|
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|||||||||||||||
(In millions)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net income for the period
|
$
|
223
|
|
|
$
|
160
|
|
|
$
|
658
|
|
|
$
|
469
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses
|
(11
|
)
|
|
1
|
|
|
(46
|
)
|
|
29
|
|
||||
Depreciation and amortization
|
49
|
|
|
47
|
|
|
141
|
|
|
131
|
|
||||
Share-based compensation
|
4
|
|
|
4
|
|
|
22
|
|
|
21
|
|
||||
Deferred income tax expense (benefit)
|
(6
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
4
|
|
||||
Net decrease (increase) in trading securities
|
31
|
|
|
5
|
|
|
(28
|
)
|
|
59
|
|
||||
Net decrease (increase) in loans held for sale
|
2
|
|
|
(18
|
)
|
|
(32
|
)
|
|
71
|
|
||||
Change in other liabilities
|
20
|
|
|
84
|
|
|
105
|
|
|
63
|
|
||||
Change in other assets
|
79
|
|
|
(42
|
)
|
|
27
|
|
|
(9
|
)
|
||||
Other, net
|
(4
|
)
|
|
(10
|
)
|
|
(18
|
)
|
|
(35
|
)
|
||||
Net cash provided by operating activities
|
387
|
|
|
227
|
|
|
825
|
|
|
803
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net decrease in money market investments
|
106
|
|
|
363
|
|
|
146
|
|
|
748
|
|
||||
Proceeds from maturities and paydowns of investment securities held-to-maturity
|
170
|
|
|
83
|
|
|
284
|
|
|
249
|
|
||||
Purchases of investment securities held-to-maturity
|
(43
|
)
|
|
(54
|
)
|
|
(265
|
)
|
|
(127
|
)
|
||||
Proceeds from sales, maturities, and paydowns of investment securities available-for-sale
|
992
|
|
|
615
|
|
|
2,396
|
|
|
1,775
|
|
||||
Purchases of investment securities available-for-sale
|
(1,084
|
)
|
|
(535
|
)
|
|
(2,260
|
)
|
|
(4,001
|
)
|
||||
Net change in loans and leases
|
(550
|
)
|
|
(475
|
)
|
|
(981
|
)
|
|
(1,511
|
)
|
||||
Net change in other noninterest-bearing investments
|
33
|
|
|
14
|
|
|
29
|
|
|
(89
|
)
|
||||
Purchases of premises and equipment
|
(36
|
)
|
|
(39
|
)
|
|
(90
|
)
|
|
(133
|
)
|
||||
Other, net
|
2
|
|
|
4
|
|
|
2
|
|
|
12
|
|
||||
Net cash used in investing activities
|
(410
|
)
|
|
(24
|
)
|
|
(739
|
)
|
|
(3,077
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in deposits
|
204
|
|
|
(278
|
)
|
|
1,169
|
|
|
(1,136
|
)
|
||||
Net change in short-term funds borrowed
|
(377
|
)
|
|
(718
|
)
|
|
804
|
|
|
1,297
|
|
||||
Proceeds from debt over 90 days and up to one year
|
—
|
|
|
1,850
|
|
|
—
|
|
|
3,600
|
|
||||
Repayments of debt over 90 days and up to one year
|
—
|
|
|
(850
|
)
|
|
(2,000
|
)
|
|
(1,100
|
)
|
||||
Cash paid for preferred stock redemption
|
—
|
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
||||
Proceeds from the issuance of long-term debt
|
497
|
|
|
—
|
|
|
497
|
|
|
—
|
|
||||
Repayment of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
||||
Proceeds from the issuance of common stock
|
2
|
|
|
2
|
|
|
19
|
|
|
20
|
|
||||
Dividends paid on common and preferred stock
|
(68
|
)
|
|
(34
|
)
|
|
(172
|
)
|
|
(89
|
)
|
||||
Bank common stock repurchased
|
(186
|
)
|
|
(115
|
)
|
|
(434
|
)
|
|
(217
|
)
|
||||
Net cash provided by (used in) financing activities
|
72
|
|
|
(143
|
)
|
|
(117
|
)
|
|
2,078
|
|
||||
Net increase (decrease) in cash and due from banks
|
49
|
|
|
60
|
|
|
(31
|
)
|
|
(196
|
)
|
||||
Cash and due from banks at beginning of period
|
468
|
|
|
481
|
|
|
548
|
|
|
737
|
|
||||
Cash and due from banks at end of period
|
$
|
517
|
|
|
$
|
541
|
|
|
$
|
517
|
|
|
$
|
541
|
|
Cash paid for interest
|
$
|
57
|
|
|
$
|
27
|
|
|
$
|
157
|
|
|
$
|
79
|
|
Net cash paid for income taxes
|
51
|
|
|
84
|
|
|
142
|
|
|
206
|
|
||||
Noncash activities are summarized as follows:
|
|
|
|
|
|
|
|
||||||||
Loans held for investment transferred to other real estate owned
|
—
|
|
|
1
|
|
|
6
|
|
|
5
|
|
||||
Loans held for investment reclassified to loans held for sale, net
|
(1
|
)
|
|
3
|
|
|
38
|
|
|
14
|
|
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 Bank
|
||||||
|
|
|
|
|
|
|
ASU 2016-02,
Leases (Topic 842) and subsequent related ASUs
|
|
The standard requires that a lessee recognize assets and liabilities for leases on the balance sheet. For leases with a term of 12 months or less, however, 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 will depend primarily on its classification as a finance or operating lease. The standard 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
|
|
Upon adoption of the standard, we currently estimate the right-of-use asset to be between $200-$250 million. This estimate may change depending on the Bank’s lease activity. 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.
|
|
|
|
|
|
|
|
ASU 2017-08,
Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
|
|
The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. The standard requires the premium to be amortized to the earliest call date. The update does not change the accounting for securities held at a discount.
|
|
January 1, 2019
|
|
Our analysis suggests this guidance will not have a material impact on the Bank’s financial statements, but we will continue to monitor its impact as we move closer to implementation.
|
|
|
|
|
|
|
|
ASU 2016-13,
Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
|
The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaces today’s “incurred loss” approach with an “expected loss” model for instruments such as loans and held-to-maturity (“HTM”) securities that are measured at amortized cost. The standard requires credit losses relating to available-for-sale (“AFS”) debt securities to be recorded through an allowance for credit loss (“ACL”) rather than a reduction of the carrying amount. It also changes the accounting for purchased credit-impaired debt securities and loans. The standard retains many of the current disclosure requirements in U.S. GAAP and expands certain disclosure requirements. Early adoption of the guidance is permitted as of January 1, 2019.
|
|
January 1, 2020
|
|
We have formed an implementation team led jointly by Credit, Treasury, and the Corporate Controller’s group, that also includes other lines of business and functions within the Bank. The implementation team is developing models that can meet the requirements of the new guidance. While this standard may potentially have a material impact on the Bank’s financial statements, we are still in process of conducting our evaluation.
|
|
|
|
|
|
|
|
ASU 2017-04,
Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
|
|
The standard eliminates the requirement to calculate the implied fair value of goodwill (i.e. Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current guidance). The standard does not change the guidance on completing Step 1 of the goodwill impairment test. The standard also continues to allow entities to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. The standard is effective for the Bank as of January 1, 2020. Early adoption is allowed for any goodwill impairment test performed after January 1, 2017.
|
|
January 1, 2020
|
|
We do not currently expect this guidance will have a material impact on the Bank’s financial statements since the fair values of our reporting units were not lower than their respective carrying amounts at the time of our goodwill impairment analysis for 2017.
|
Standard
|
|
Description
|
|
Date of adoption
|
|
Effect on the financial statements or other significant matters
|
|
|
|
|
|
|
|
Standards adopted by the Bank (continued)
|
||||||
|
|
|
|
|
|
|
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
|
|
The transition adjustment upon adoption of this guidance was not material. We refined our valuation models to better account for an exit price, which does not impact our financial statements, but does have an impact on our disclosures, as provided in Footnote 3.
|
|
|
|
|
|
|
|
ASU 2017-12,
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
|
|
The purpose of this standard is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The standard is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The standard requires a modified retrospective transition method that requires recognition of the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption.
|
|
January 1, 2018
|
|
We early adopted this guidance in the first quarter. The adoption of this guidance did not have a material impact on our consolidated financial statements at transition.
|
3.
|
FAIR VALUE
|
(In millions)
|
September 30, 2018
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
1
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
25
|
|
|
$
|
13,292
|
|
|
$
|
—
|
|
|
$
|
13,317
|
|
Municipal securities
|
|
|
1,284
|
|
|
|
|
|
1,284
|
|
|||||
Other debt securities
|
|
|
24
|
|
|
|
|
24
|
|
||||||
Total Available-for-sale
|
25
|
|
|
14,600
|
|
|
—
|
|
|
14,625
|
|
||||
Trading account
|
119
|
|
|
57
|
|
|
|
|
176
|
|
|||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
516
|
|
|
|
|
516
|
|
||||||
Private equity investments
|
|
|
|
|
|
103
|
|
|
103
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Agriculture loan servicing and interest-only strips
|
|
|
|
|
|
18
|
|
|
18
|
|
|||||
Deferred compensation plan assets
|
108
|
|
|
|
|
|
|
|
|
108
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and forwards
|
|
|
1
|
|
|
|
|
1
|
|
||||||
Interest rate swaps for customers
|
|
|
18
|
|
|
|
|
18
|
|
||||||
Foreign currency exchange contracts
|
4
|
|
|
|
|
|
|
4
|
|
||||||
Total Assets
|
$
|
256
|
|
|
$
|
15,192
|
|
|
$
|
121
|
|
|
$
|
15,569
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49
|
|
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan obligations
|
108
|
|
|
|
|
|
|
108
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps for customers
|
|
|
73
|
|
|
|
|
73
|
|
||||||
Foreign currency exchange contracts
|
3
|
|
|
|
|
|
|
3
|
|
||||||
Total Liabilities
|
$
|
160
|
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
233
|
|
(In millions)
|
December 31, 2017
|
||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
1
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury, agencies and corporations
|
$
|
25
|
|
|
$
|
13,706
|
|
|
$
|
—
|
|
|
$
|
13,731
|
|
Municipal securities
|
|
|
1,334
|
|
|
|
|
|
1,334
|
|
|||||
Other debt securities
|
|
|
24
|
|
|
|
|
|
24
|
|
|||||
Money market mutual funds and other
|
71
|
|
|
1
|
|
|
|
|
72
|
|
|||||
Total Available-for-sale
|
96
|
|
|
15,065
|
|
|
—
|
|
|
15,161
|
|
||||
Trading account
|
|
|
148
|
|
|
|
|
148
|
|
||||||
Other noninterest-bearing investments:
|
|
|
|
|
|
|
|
||||||||
Bank-owned life insurance
|
|
|
507
|
|
|
|
|
507
|
|
||||||
Private equity investments
|
|
|
|
|
|
95
|
|
|
95
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Agriculture loan servicing and interest-only strips
|
|
|
|
|
|
18
|
|
|
18
|
|
|||||
Deferred compensation plan assets
|
102
|
|
|
|
|
|
|
|
|
102
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps and forwards
|
|
|
1
|
|
|
|
|
1
|
|
||||||
Interest rate swaps for customers
|
|
|
28
|
|
|
|
|
28
|
|
||||||
Foreign currency exchange contracts
|
9
|
|
|
|
|
|
|
9
|
|
||||||
Total Assets
|
$
|
207
|
|
|
$
|
15,749
|
|
|
$
|
113
|
|
|
$
|
16,069
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95
|
|
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan obligations
|
102
|
|
|
|
|
|
|
102
|
|
||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps for customers
|
|
|
33
|
|
|
|
|
33
|
|
||||||
Foreign currency exchange contracts
|
7
|
|
|
|
|
|
|
7
|
|
||||||
Total Liabilities
|
$
|
204
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
237
|
|
|
Level 3 Instruments
|
||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||||||||
(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
|
$
|
102
|
|
|
$
|
18
|
|
|
$
|
82
|
|
|
$
|
19
|
|
|
$
|
95
|
|
|
$
|
18
|
|
|
$
|
73
|
|
|
$
|
20
|
|
Securities gains (losses), net
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||||
Other noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||||
Purchases
|
2
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||||||
Redemptions and paydowns
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||||||
Balance at end of period
|
$
|
103
|
|
|
$
|
18
|
|
|
$
|
93
|
|
|
$
|
19
|
|
|
$
|
103
|
|
|
$
|
18
|
|
|
$
|
93
|
|
|
$
|
19
|
|
(In millions)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|||||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Securities gains (losses), net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
(In millions)
|
Fair value at September 30, 2018
|
|
Fair value at December 31, 2017
|
||||||||||||||||||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private equity investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Impaired loans
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||||
Other real estate owned
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
Gains (losses) from fair value changes
|
||||||||||||||
(In millions)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Private equity investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Impaired loans
|
(9
|
)
|
|
(1
|
)
|
|
(15
|
)
|
|
(8
|
)
|
||||
Other real estate owned
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Total
|
$
|
(9
|
)
|
|
$
|
(1
|
)
|
|
$
|
(16
|
)
|
|
$
|
(9
|
)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||
(In millions)
|
Carrying
value
|
|
Estimated
fair value
|
|
Level
|
|
Carrying
value
|
|
Estimated
fair value
|
|
Level
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
HTM investment securities
|
$
|
751
|
|
|
$
|
734
|
|
|
2
|
|
$
|
770
|
|
|
$
|
762
|
|
|
2
|
Loans and leases (including loans held for sale), net of allowance
|
45,391
|
|
|
44,452
|
|
|
3
|
|
44,306
|
|
|
44,226
|
|
|
3
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
4,256
|
|
|
4,231
|
|
|
2
|
|
3,115
|
|
|
3,099
|
|
|
2
|
||||
Other short-term borrowings
|
2,900
|
|
|
2,900
|
|
|
2
|
|
3,600
|
|
|
3,600
|
|
|
2
|
||||
Long-term debt
|
879
|
|
|
885
|
|
|
2
|
|
383
|
|
|
402
|
|
|
2
|
4.
|
OFFSETTING ASSETS AND LIABILITIES
|
|
|
September 30, 2018
|
||||||||||||||||||||||
(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
|
|
$
|
781
|
|
|
$
|
(221
|
)
|
|
$
|
560
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
560
|
|
Derivatives (included in other assets)
|
|
23
|
|
|
—
|
|
|
23
|
|
|
(13
|
)
|
|
(8
|
)
|
|
2
|
|
||||||
Total assets
|
|
$
|
804
|
|
|
$
|
(221
|
)
|
|
$
|
583
|
|
|
$
|
(13
|
)
|
|
$
|
(8
|
)
|
|
$
|
562
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds and other short-term borrowings
|
|
$
|
4,001
|
|
|
$
|
(221
|
)
|
|
$
|
3,780
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,780
|
|
Derivatives (included in other liabilities)
|
|
76
|
|
|
—
|
|
|
76
|
|
|
(13
|
)
|
|
—
|
|
|
63
|
|
||||||
Total Liabilities
|
|
$
|
4,077
|
|
|
$
|
(221
|
)
|
|
$
|
3,856
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
3,843
|
|
|
|
December 31, 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
|
|
$
|
809
|
|
|
$
|
(295
|
)
|
|
$
|
514
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
514
|
|
Derivatives (included in other assets)
|
|
38
|
|
|
—
|
|
|
38
|
|
|
(9
|
)
|
|
(1
|
)
|
|
28
|
|
||||||
Total assets
|
|
$
|
847
|
|
|
$
|
(295
|
)
|
|
$
|
552
|
|
|
$
|
(9
|
)
|
|
$
|
(1
|
)
|
|
$
|
542
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds and other short-term borrowings
|
|
$
|
5,271
|
|
|
$
|
(295
|
)
|
|
$
|
4,976
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,976
|
|
Derivatives (included in other liabilities)
|
|
40
|
|
|
—
|
|
|
40
|
|
|
(9
|
)
|
|
(6
|
)
|
|
25
|
|
||||||
Total Liabilities
|
|
$
|
5,311
|
|
|
$
|
(295
|
)
|
|
$
|
5,016
|
|
|
$
|
(9
|
)
|
|
$
|
(6
|
)
|
|
$
|
5,001
|
|
5.
|
INVESTMENTS
|
|
September 30, 2018
|
||||||||||||||
(In millions)
|
Amortized
cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated
fair value
|
||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
751
|
|
|
$
|
4
|
|
|
$
|
21
|
|
|
$
|
734
|
|
Available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
||||||||
Agency securities
|
1,480
|
|
|
—
|
|
|
32
|
|
|
1,448
|
|
||||
Agency guaranteed mortgage-backed securities
|
10,159
|
|
|
6
|
|
|
341
|
|
|
9,824
|
|
||||
Small Business Administration loan-backed securities
|
2,069
|
|
|
1
|
|
|
50
|
|
|
2,020
|
|
||||
Municipal securities
|
1,313
|
|
|
1
|
|
|
30
|
|
|
1,284
|
|
||||
Other debt securities
|
25
|
|
|
—
|
|
|
1
|
|
|
24
|
|
||||
Total available-for-sale
|
15,071
|
|
|
8
|
|
|
454
|
|
|
14,625
|
|
||||
Total investment securities
|
$
|
15,822
|
|
|
$
|
12
|
|
|
$
|
475
|
|
|
$
|
15,359
|
|
|
December 31, 2017
|
||||||||||||||
(In millions)
|
Amortized
cost |
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Estimated
fair value |
||||||||
Held-to-maturity
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
770
|
|
|
$
|
5
|
|
|
$
|
13
|
|
|
$
|
762
|
|
Available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
||||||||
Agency securities
|
1,830
|
|
|
1
|
|
|
13
|
|
|
1,818
|
|
||||
Agency guaranteed mortgage-backed securities
|
9,798
|
|
|
9
|
|
|
141
|
|
|
9,666
|
|
||||
Small Business Administration loan-backed securities
|
2,227
|
|
|
10
|
|
|
15
|
|
|
2,222
|
|
||||
Municipal securities
|
1,336
|
|
|
9
|
|
|
11
|
|
|
1,334
|
|
||||
Other debt securities
|
25
|
|
|
—
|
|
|
1
|
|
|
24
|
|
||||
Total available-for-sale debt securities
|
15,241
|
|
|
29
|
|
|
181
|
|
|
15,089
|
|
||||
Money market mutual funds and other
|
72
|
|
|
—
|
|
|
—
|
|
|
72
|
|
||||
Total available-for-sale
|
15,313
|
|
|
29
|
|
|
181
|
|
|
15,161
|
|
||||
Total investment securities
|
$
|
16,083
|
|
|
$
|
34
|
|
|
$
|
194
|
|
|
$
|
15,923
|
|
|
September 30, 2018
|
||||||||||||||
|
Held-to-maturity
|
|
Available-for-sale
|
||||||||||||
(In millions)
|
Amortized
cost
|
|
Estimated
fair value
|
|
Amortized
cost
|
|
Estimated
fair value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
201
|
|
|
$
|
199
|
|
|
$
|
1,572
|
|
|
$
|
1,528
|
|
Due after one year through five years
|
356
|
|
|
349
|
|
|
4,874
|
|
|
4,733
|
|
||||
Due after five years through ten years
|
139
|
|
|
135
|
|
|
4,650
|
|
|
4,509
|
|
||||
Due after ten years
|
55
|
|
|
51
|
|
|
3,975
|
|
|
3,855
|
|
||||
Total
|
$
|
751
|
|
|
$
|
734
|
|
|
$
|
15,071
|
|
|
$
|
14,625
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
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
|
$
|
4
|
|
|
$
|
227
|
|
|
$
|
17
|
|
|
$
|
343
|
|
|
$
|
21
|
|
|
$
|
570
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
20
|
|
|
970
|
|
|
12
|
|
|
354
|
|
|
32
|
|
|
1,324
|
|
||||||
Agency guaranteed mortgage-backed securities
|
92
|
|
|
3,821
|
|
|
249
|
|
|
5,354
|
|
|
341
|
|
|
9,175
|
|
||||||
Small Business Administration loan-backed securities
|
25
|
|
|
1,414
|
|
|
25
|
|
|
559
|
|
|
50
|
|
|
1,973
|
|
||||||
Municipal securities
|
15
|
|
|
834
|
|
|
15
|
|
|
331
|
|
|
30
|
|
|
1,165
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
14
|
|
|
1
|
|
|
14
|
|
||||||
Total available-for-sale
|
152
|
|
|
7,064
|
|
|
302
|
|
|
6,612
|
|
|
454
|
|
|
13,676
|
|
||||||
Total
|
$
|
156
|
|
|
$
|
7,291
|
|
|
$
|
319
|
|
|
$
|
6,955
|
|
|
$
|
475
|
|
|
$
|
14,246
|
|
|
December 31, 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
|
|
|
$
|
263
|
|
|
$
|
10
|
|
|
$
|
292
|
|
|
$
|
13
|
|
|
$
|
555
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies and corporations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency securities
|
6
|
|
|
808
|
|
|
7
|
|
|
808
|
|
|
13
|
|
|
1,616
|
|
||||||
Agency guaranteed mortgage-backed securities
|
29
|
|
|
3,609
|
|
|
112
|
|
|
4,721
|
|
|
141
|
|
|
8,330
|
|
||||||
Small Business Administration loan-backed securities
|
3
|
|
|
408
|
|
|
12
|
|
|
649
|
|
|
15
|
|
|
1,057
|
|
||||||
Municipal securities
|
6
|
|
|
554
|
|
|
5
|
|
|
230
|
|
|
11
|
|
|
784
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
14
|
|
|
1
|
|
|
14
|
|
||||||
Total available-for-sale
|
44
|
|
|
5,379
|
|
|
137
|
|
|
6,422
|
|
|
181
|
|
|
11,801
|
|
||||||
Total
|
$
|
47
|
|
|
$
|
5,642
|
|
|
$
|
147
|
|
|
$
|
6,714
|
|
|
$
|
194
|
|
|
$
|
12,356
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||
(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
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
20
|
|
|
$
|
7
|
|
|
Net gains (losses)
1
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
5
|
|
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
13
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
||||||||||||||||||||
|
Taxable
|
|
Nontaxable
|
|
Total
|
|
Taxable
|
|
Nontaxable
|
|
Total
|
||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
5
|
|
Available-for-sale
|
73
|
|
|
6
|
|
|
79
|
|
|
72
|
|
|
6
|
|
|
78
|
|
||||||
Trading
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Total
|
$
|
76
|
|
|
$
|
10
|
|
|
$
|
86
|
|
|
$
|
75
|
|
|
$
|
9
|
|
|
$
|
84
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
||||||||||||||||||||
|
Taxable
|
|
Nontaxable
|
|
Total
|
|
Taxable
|
|
Nontaxable
|
|
Total
|
||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity
|
$
|
8
|
|
|
$
|
11
|
|
|
$
|
19
|
|
|
$
|
7
|
|
|
$
|
10
|
|
|
$
|
17
|
|
Available-for-sale
|
216
|
|
|
19
|
|
|
235
|
|
|
209
|
|
|
18
|
|
|
227
|
|
||||||
Trading
|
3
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Total
|
$
|
227
|
|
|
$
|
30
|
|
|
$
|
257
|
|
|
$
|
218
|
|
|
$
|
28
|
|
|
$
|
246
|
|
6.
|
LOANS AND ALLOWANCE FOR CREDIT LOSSES
|
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Loans held for sale
|
$
|
61
|
|
|
$
|
44
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
14,096
|
|
|
$
|
14,003
|
|
Leasing
|
332
|
|
|
364
|
|
||
Owner-occupied
|
7,548
|
|
|
7,288
|
|
||
Municipal
|
1,563
|
|
|
1,271
|
|
||
Total commercial
|
23,539
|
|
|
22,926
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
2,295
|
|
|
2,021
|
|
||
Term
|
8,752
|
|
|
9,103
|
|
||
Total commercial real estate
|
11,047
|
|
|
11,124
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
2,884
|
|
|
2,777
|
|
||
1-4 family residential
|
7,039
|
|
|
6,662
|
|
||
Construction and other consumer real estate
|
644
|
|
|
597
|
|
||
Bankcard and other revolving plans
|
483
|
|
|
509
|
|
||
Other
|
174
|
|
|
185
|
|
||
Total consumer
|
11,224
|
|
|
10,730
|
|
||
Total loans
1
|
$
|
45,810
|
|
|
$
|
44,780
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
371
|
|
|
$
|
103
|
|
|
$
|
44
|
|
|
$
|
518
|
|
Provision for loan losses
|
(69
|
)
|
|
9
|
|
|
14
|
|
|
(46
|
)
|
||||
Gross loan and lease charge-offs
|
38
|
|
|
5
|
|
|
13
|
|
|
56
|
|
||||
Recoveries
|
50
|
|
|
8
|
|
|
6
|
|
|
64
|
|
||||
Net loan and lease charge-offs (recoveries)
|
(12
|
)
|
|
(3
|
)
|
|
7
|
|
|
(8
|
)
|
||||
Balance at end of period
|
$
|
314
|
|
|
$
|
115
|
|
|
$
|
51
|
|
|
$
|
480
|
|
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
48
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
58
|
|
Provision for unfunded lending commitments
|
(6
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Balance at end of period
|
$
|
42
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
58
|
|
Total allowance for credit losses at end of period
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
314
|
|
|
$
|
115
|
|
|
$
|
51
|
|
|
$
|
480
|
|
Reserve for unfunded lending commitments
|
42
|
|
|
16
|
|
|
—
|
|
|
58
|
|
||||
Total allowance for credit losses
|
$
|
356
|
|
|
$
|
131
|
|
|
$
|
51
|
|
|
$
|
538
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
393
|
|
|
$
|
116
|
|
|
$
|
35
|
|
|
$
|
544
|
|
Provision for loan losses
|
(4
|
)
|
|
(7
|
)
|
|
16
|
|
|
5
|
|
||||
Gross loan and lease charge-offs
|
16
|
|
|
4
|
|
|
5
|
|
|
25
|
|
||||
Recoveries
|
12
|
|
|
2
|
|
|
3
|
|
|
17
|
|
||||
Net loan and lease charge-offs (recoveries)
|
4
|
|
|
2
|
|
|
2
|
|
|
8
|
|
||||
Balance at end of period
|
$
|
385
|
|
|
$
|
107
|
|
|
$
|
49
|
|
|
$
|
541
|
|
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
53
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
63
|
|
Provision for unfunded lending commitments
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Balance at end of period
|
$
|
49
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
59
|
|
Total allowance for credit losses at end of period
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
385
|
|
|
$
|
107
|
|
|
$
|
49
|
|
|
$
|
541
|
|
Reserve for unfunded lending commitments
|
49
|
|
|
10
|
|
|
—
|
|
|
59
|
|
||||
Total allowance for credit losses
|
$
|
434
|
|
|
$
|
117
|
|
|
$
|
49
|
|
|
$
|
600
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
420
|
|
|
$
|
116
|
|
|
$
|
31
|
|
|
$
|
567
|
|
Provision for loan losses
|
27
|
|
|
(15
|
)
|
|
23
|
|
|
35
|
|
||||
Gross loan and lease charge-offs
|
98
|
|
|
6
|
|
|
13
|
|
|
117
|
|
||||
Recoveries
|
36
|
|
|
12
|
|
|
8
|
|
|
56
|
|
||||
Net loan and lease charge-offs (recoveries)
|
62
|
|
|
(6
|
)
|
|
5
|
|
|
61
|
|
||||
Balance at end of period
|
$
|
385
|
|
|
$
|
107
|
|
|
$
|
49
|
|
|
$
|
541
|
|
Reserve for unfunded lending commitments
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
54
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
65
|
|
Provision for unfunded lending commitments
|
(5
|
)
|
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
||||
Balance at end of period
|
$
|
49
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
59
|
|
Total allowance for credit losses at end of period
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
$
|
385
|
|
|
$
|
107
|
|
|
$
|
49
|
|
|
$
|
541
|
|
Reserve for unfunded lending commitments
|
49
|
|
|
10
|
|
|
—
|
|
|
59
|
|
||||
Total allowance for credit losses
|
$
|
434
|
|
|
$
|
117
|
|
|
$
|
49
|
|
|
$
|
600
|
|
The ALLL and outstanding loan balances according to the Bank’s impairment method are summarized as follows:
|
|||||||||||||||
|
September 30, 2018
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
10
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
14
|
|
Collectively evaluated for impairment
|
304
|
|
|
114
|
|
|
48
|
|
|
466
|
|
||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
314
|
|
|
$
|
115
|
|
|
$
|
51
|
|
|
$
|
480
|
|
Outstanding loan balances:
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
201
|
|
|
$
|
65
|
|
|
$
|
74
|
|
|
$
|
340
|
|
Collectively evaluated for impairment
|
23,338
|
|
|
10,982
|
|
|
11,150
|
|
|
45,470
|
|
||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
23,539
|
|
|
$
|
11,047
|
|
|
$
|
11,224
|
|
|
$
|
45,810
|
|
|
December 31, 2017
|
||||||||||||||
(In millions)
|
Commercial
|
|
Commercial
real estate
|
|
Consumer
|
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
26
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
31
|
|
Collectively evaluated for impairment
|
345
|
|
|
102
|
|
|
40
|
|
|
487
|
|
||||
Purchased loans with evidence of credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
371
|
|
|
$
|
103
|
|
|
$
|
44
|
|
|
$
|
518
|
|
Outstanding loan balances:
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
314
|
|
|
$
|
69
|
|
|
$
|
76
|
|
|
$
|
459
|
|
Collectively evaluated for impairment
|
22,598
|
|
|
11,048
|
|
|
10,648
|
|
|
44,294
|
|
||||
Purchased loans with evidence of credit deterioration
|
14
|
|
|
7
|
|
|
6
|
|
|
27
|
|
||||
Total
|
$
|
22,926
|
|
|
$
|
11,124
|
|
|
$
|
10,730
|
|
|
$
|
44,780
|
|
Nonaccrual loans are summarized as follows:
|
|||||||
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Loans held for sale
|
$
|
—
|
|
|
$
|
12
|
|
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
112
|
|
|
$
|
195
|
|
Leasing
|
2
|
|
|
8
|
|
||
Owner-occupied
|
66
|
|
|
90
|
|
||
Municipal
|
1
|
|
|
1
|
|
||
Total commercial
|
181
|
|
|
294
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction and land development
|
—
|
|
|
4
|
|
||
Term
|
46
|
|
|
36
|
|
||
Total commercial real estate
|
46
|
|
|
40
|
|
||
Consumer:
|
|
|
|
||||
Home equity credit line
|
13
|
|
|
13
|
|
||
1-4 family residential
|
47
|
|
|
55
|
|
||
Construction and other consumer real estate
|
—
|
|
|
—
|
|
||
Bankcard and other revolving plans
|
1
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
||
Total consumer loans
|
61
|
|
|
68
|
|
||
Total
|
$
|
288
|
|
|
$
|
402
|
|
|
December 31, 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
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
12
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
13,887
|
|
|
$
|
60
|
|
|
$
|
56
|
|
|
$
|
116
|
|
|
$
|
14,003
|
|
|
$
|
13
|
|
|
$
|
146
|
|
Leasing
|
363
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
364
|
|
|
—
|
|
|
8
|
|
|||||||
Owner-occupied
|
7,219
|
|
|
29
|
|
|
40
|
|
|
69
|
|
|
7,288
|
|
|
4
|
|
|
49
|
|
|||||||
Municipal
|
1,271
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,271
|
|
|
—
|
|
|
1
|
|
|||||||
Total commercial
|
22,740
|
|
|
90
|
|
|
96
|
|
|
186
|
|
|
22,926
|
|
|
17
|
|
|
204
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
2,014
|
|
|
3
|
|
|
4
|
|
|
7
|
|
|
2,021
|
|
|
—
|
|
|
—
|
|
|||||||
Term
|
9,079
|
|
|
13
|
|
|
11
|
|
|
24
|
|
|
9,103
|
|
|
2
|
|
|
25
|
|
|||||||
Total commercial real estate
|
11,093
|
|
|
16
|
|
|
15
|
|
|
31
|
|
|
11,124
|
|
|
2
|
|
|
25
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
2,763
|
|
|
9
|
|
|
5
|
|
|
14
|
|
|
2,777
|
|
|
—
|
|
|
5
|
|
|||||||
1-4 family residential
|
6,621
|
|
|
16
|
|
|
25
|
|
|
41
|
|
|
6,662
|
|
|
1
|
|
|
27
|
|
|||||||
Construction and other consumer real estate
|
590
|
|
|
6
|
|
|
1
|
|
|
7
|
|
|
597
|
|
|
1
|
|
|
—
|
|
|||||||
Bankcard and other revolving plans
|
506
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
509
|
|
|
1
|
|
|
—
|
|
|||||||
Other
|
184
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
185
|
|
|
—
|
|
|
—
|
|
|||||||
Total consumer loans
|
10,664
|
|
|
34
|
|
|
32
|
|
|
66
|
|
|
10,730
|
|
|
3
|
|
|
32
|
|
|||||||
Total
|
$
|
44,497
|
|
|
$
|
140
|
|
|
$
|
143
|
|
|
$
|
283
|
|
|
$
|
44,780
|
|
|
$
|
22
|
|
|
$
|
261
|
|
1
|
Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is still not expected.
|
|
September 30, 2018
|
||||||||||||||||||||||
(In millions)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
13,416
|
|
|
$
|
311
|
|
|
$
|
369
|
|
|
$
|
—
|
|
|
$
|
14,096
|
|
|
|
||
Leasing
|
318
|
|
|
10
|
|
|
4
|
|
|
—
|
|
|
332
|
|
|
|
|||||||
Owner-occupied
|
7,253
|
|
|
84
|
|
|
211
|
|
|
—
|
|
|
7,548
|
|
|
|
|||||||
Municipal
|
1,536
|
|
|
4
|
|
|
23
|
|
|
—
|
|
|
1,563
|
|
|
|
|||||||
Total commercial
|
22,523
|
|
|
409
|
|
|
607
|
|
|
—
|
|
|
23,539
|
|
|
$
|
314
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
2,284
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
2,295
|
|
|
|
|||||||
Term
|
8,631
|
|
|
18
|
|
|
103
|
|
|
—
|
|
|
8,752
|
|
|
|
|||||||
Total commercial real estate
|
10,915
|
|
|
29
|
|
|
103
|
|
|
—
|
|
|
11,047
|
|
|
115
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,866
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
2,884
|
|
|
|
|||||||
1-4 family residential
|
6,988
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
7,039
|
|
|
|
|||||||
Construction and other consumer real estate
|
642
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
644
|
|
|
|
|||||||
Bankcard and other revolving plans
|
480
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
483
|
|
|
|
|||||||
Other
|
174
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|
|
|||||||
Total consumer loans
|
11,150
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
11,224
|
|
|
51
|
|
||||||
Total
|
$
|
44,588
|
|
|
$
|
438
|
|
|
$
|
784
|
|
|
$
|
—
|
|
|
$
|
45,810
|
|
|
$
|
480
|
|
|
December 31, 2017
|
||||||||||||||||||||||
(In millions)
|
Pass
|
|
Special
Mention
|
|
Sub-
standard
|
|
Doubtful
|
|
Total
loans
|
|
Total
allowance
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
13,001
|
|
|
$
|
395
|
|
|
$
|
606
|
|
|
$
|
1
|
|
|
$
|
14,003
|
|
|
|
||
Leasing
|
342
|
|
|
6
|
|
|
16
|
|
|
—
|
|
|
364
|
|
|
|
|||||||
Owner-occupied
|
6,920
|
|
|
93
|
|
|
275
|
|
|
—
|
|
|
7,288
|
|
|
|
|||||||
Municipal
|
1,257
|
|
|
13
|
|
|
1
|
|
|
—
|
|
|
1,271
|
|
|
|
|||||||
Total commercial
|
21,520
|
|
|
507
|
|
|
898
|
|
|
1
|
|
|
22,926
|
|
|
$
|
371
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land development
|
2,002
|
|
|
15
|
|
|
4
|
|
|
—
|
|
|
2,021
|
|
|
|
|||||||
Term
|
8,816
|
|
|
138
|
|
|
149
|
|
|
—
|
|
|
9,103
|
|
|
|
|||||||
Total commercial real estate
|
10,818
|
|
|
153
|
|
|
153
|
|
|
—
|
|
|
11,124
|
|
|
103
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity credit line
|
2,759
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
2,777
|
|
|
|
|||||||
1-4 family residential
|
6,602
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
6,662
|
|
|
|
|||||||
Construction and other consumer real estate
|
596
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
597
|
|
|
|
|||||||
Bankcard and other revolving plans
|
507
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
509
|
|
|
|
|||||||
Other
|
185
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
185
|
|
|
|
|||||||
Total consumer loans
|
10,649
|
|
|
—
|
|
|
81
|
|
|
—
|
|
|
10,730
|
|
|
44
|
|
||||||
Total
|
$
|
42,987
|
|
|
$
|
660
|
|
|
$
|
1,132
|
|
|
$
|
1
|
|
|
$
|
44,780
|
|
|
$
|
518
|
|
|
September 30, 2018
|
||||||||||||||||||
(In millions)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
170
|
|
|
$
|
72
|
|
|
$
|
47
|
|
|
$
|
119
|
|
|
$
|
8
|
|
Owner-occupied
|
66
|
|
|
39
|
|
|
21
|
|
|
60
|
|
|
2
|
|
|||||
Municipal
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total commercial
|
237
|
|
|
112
|
|
|
68
|
|
|
180
|
|
|
10
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||
Term
|
59
|
|
|
44
|
|
|
5
|
|
|
49
|
|
|
—
|
|
|||||
Total commercial real estate
|
60
|
|
|
44
|
|
|
6
|
|
|
50
|
|
|
—
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
16
|
|
|
12
|
|
|
2
|
|
|
14
|
|
|
3
|
|
|||||
1-4 family residential
|
70
|
|
|
33
|
|
|
26
|
|
|
59
|
|
|
—
|
|
|||||
Construction and other consumer real estate
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total consumer loans
|
88
|
|
|
46
|
|
|
28
|
|
|
74
|
|
|
3
|
|
|||||
Total
|
$
|
385
|
|
|
$
|
202
|
|
|
$
|
102
|
|
|
$
|
304
|
|
|
$
|
13
|
|
|
December 31, 2017
|
||||||||||||||||||
(In millions)
|
Unpaid
principal
balance
|
|
Recorded investment
|
|
Total
recorded
investment
|
|
Related
allowance
|
||||||||||||
with no
allowance
|
|
with
allowance
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
293
|
|
|
$
|
80
|
|
|
$
|
142
|
|
|
$
|
222
|
|
|
$
|
24
|
|
Owner-occupied
|
120
|
|
|
79
|
|
|
23
|
|
|
102
|
|
|
2
|
|
|||||
Municipal
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total commercial
|
414
|
|
|
160
|
|
|
165
|
|
|
325
|
|
|
26
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
8
|
|
|
4
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|||||
Term
|
56
|
|
|
36
|
|
|
12
|
|
|
48
|
|
|
—
|
|
|||||
Total commercial real estate
|
64
|
|
|
40
|
|
|
14
|
|
|
54
|
|
|
—
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity credit line
|
25
|
|
|
13
|
|
|
9
|
|
|
22
|
|
|
—
|
|
|||||
1-4 family residential
|
67
|
|
|
28
|
|
|
29
|
|
|
57
|
|
|
4
|
|
|||||
Construction and other consumer real estate
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|||||
Other
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Total consumer loans
|
95
|
|
|
43
|
|
|
39
|
|
|
82
|
|
|
4
|
|
|||||
Total
|
$
|
573
|
|
|
$
|
243
|
|
|
$
|
218
|
|
|
$
|
461
|
|
|
$
|
30
|
|
|
Three Months Ended
September 30, 2018 |
|
Nine Months Ended
September 30, 2018 |
||||||||||||
(In millions)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
108
|
|
|
$
|
—
|
|
Owner-occupied
|
51
|
|
|
—
|
|
|
46
|
|
|
8
|
|
||||
Municipal
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total commercial
|
176
|
|
|
—
|
|
|
155
|
|
|
8
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Term
|
49
|
|
|
—
|
|
|
50
|
|
|
1
|
|
||||
Total commercial real estate
|
50
|
|
|
—
|
|
|
51
|
|
|
1
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
14
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
1-4 family residential
|
58
|
|
|
—
|
|
|
53
|
|
|
—
|
|
||||
Construction and other consumer real estate
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total consumer loans
|
73
|
|
|
—
|
|
|
67
|
|
|
—
|
|
||||
Total
|
$
|
299
|
|
|
$
|
—
|
|
|
$
|
273
|
|
|
$
|
9
|
|
|
Three Months Ended
September 30, 2017 |
|
Nine Months Ended
September 30, 2017 |
||||||||||||
(In millions)
|
Average
recorded
investment
|
|
Interest
income
recognized
|
|
Average
recorded
investment
|
|
Interest
income
recognized
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
356
|
|
|
$
|
1
|
|
|
$
|
311
|
|
|
$
|
5
|
|
Owner-occupied
|
104
|
|
|
2
|
|
|
101
|
|
|
5
|
|
||||
Municipal
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total commercial
|
461
|
|
|
3
|
|
|
413
|
|
|
10
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
10
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Term
|
53
|
|
|
1
|
|
|
58
|
|
|
11
|
|
||||
Total commercial real estate
|
63
|
|
|
1
|
|
|
69
|
|
|
11
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Home equity credit line
|
21
|
|
|
—
|
|
|
21
|
|
|
1
|
|
||||
1-4 family residential
|
53
|
|
|
1
|
|
|
53
|
|
|
1
|
|
||||
Construction and other consumer real estate
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total consumer loans
|
77
|
|
|
1
|
|
|
77
|
|
|
2
|
|
||||
Total
|
$
|
601
|
|
|
$
|
5
|
|
|
$
|
559
|
|
|
$
|
23
|
|
|
September 30, 2018
|
||||||||||||||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
7
|
|
|
$
|
26
|
|
Owner-occupied
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
16
|
|
|
20
|
|
|||||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total commercial
|
1
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
23
|
|
|
46
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||||
Term
|
4
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
13
|
|
|||||||
Total commercial real estate
|
4
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|
14
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
2
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
13
|
|
|||||||
1-4 family residential
|
1
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
2
|
|
|
30
|
|
|
40
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||||
Total consumer loans
|
1
|
|
|
3
|
|
|
14
|
|
|
—
|
|
|
2
|
|
|
34
|
|
|
54
|
|
|||||||
Total accruing
|
6
|
|
|
11
|
|
|
14
|
|
|
1
|
|
|
18
|
|
|
64
|
|
|
114
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
—
|
|
|
6
|
|
|
1
|
|
|
1
|
|
|
12
|
|
|
38
|
|
|
58
|
|
|||||||
Owner-occupied
|
1
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
5
|
|
|
10
|
|
|||||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||||
Total commercial
|
1
|
|
|
8
|
|
|
1
|
|
|
2
|
|
|
13
|
|
|
44
|
|
|
69
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Term
|
3
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
1
|
|
|
10
|
|
|||||||
Total commercial real estate
|
3
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
1
|
|
|
10
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
1-4 family residential
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
8
|
|
|
10
|
|
|||||||
Total consumer loans
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
8
|
|
|
11
|
|
|||||||
Total nonaccruing
|
4
|
|
|
8
|
|
|
3
|
|
|
4
|
|
|
18
|
|
|
53
|
|
|
90
|
|
|||||||
Total
|
$
|
10
|
|
|
$
|
19
|
|
|
$
|
17
|
|
|
$
|
5
|
|
|
$
|
36
|
|
|
$
|
117
|
|
|
$
|
204
|
|
2
|
Includes TDRs that resulted from a combination of any of the previous modification types.
|
|
December 31, 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
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
33
|
|
|
$
|
47
|
|
Owner-occupied
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
14
|
|
|
23
|
|
|||||||
Total commercial
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
47
|
|
|
70
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|||||||
Term
|
6
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|
14
|
|
|||||||
Total commercial real estate
|
6
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
9
|
|
|
16
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
2
|
|
|
9
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
15
|
|
|||||||
1-4 family residential
|
1
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
2
|
|
|
26
|
|
|
36
|
|
|||||||
Construction and other consumer real estate
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||||
Total consumer loans
|
1
|
|
|
3
|
|
|
15
|
|
|
1
|
|
|
3
|
|
|
30
|
|
|
53
|
|
|||||||
Total accruing
|
8
|
|
|
6
|
|
|
15
|
|
|
2
|
|
|
22
|
|
|
86
|
|
|
139
|
|
|||||||
Nonaccruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
—
|
|
|
3
|
|
|
5
|
|
|
2
|
|
|
28
|
|
|
24
|
|
|
62
|
|
|||||||
Owner-occupied
|
1
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
5
|
|
|
10
|
|
|||||||
Municipal
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Total commercial
|
1
|
|
|
6
|
|
|
5
|
|
|
3
|
|
|
29
|
|
|
29
|
|
|
73
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Term
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
5
|
|
|||||||
Total commercial real estate
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
5
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity credit line
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
1-4 family residential
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
8
|
|
|||||||
Total consumer loans
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
9
|
|
|||||||
Total nonaccruing
|
3
|
|
|
6
|
|
|
8
|
|
|
3
|
|
|
30
|
|
|
37
|
|
|
87
|
|
|||||||
Total
|
$
|
11
|
|
|
$
|
12
|
|
|
$
|
23
|
|
|
$
|
5
|
|
|
$
|
52
|
|
|
$
|
123
|
|
|
$
|
226
|
|
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
September 30, 2018 |
|
Nine Months Ended
September 30, 2018 |
||||||||||||||||||||
(In millions)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
5
|
|
Owner-occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Total commercial
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Term
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Total commercial real estate
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Total
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
8
|
|
|
Three Months Ended
September 30, 2017 |
|
Nine Months Ended
September 30, 2017 |
||||||||||||||||||||
(In millions)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Owner-occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Total commercial
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
7.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
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
|
$
|
713
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,138
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total derivatives designated as hedging instruments
|
1,213
|
|
|
—
|
|
|
—
|
|
|
1,138
|
|
|
—
|
|
|
—
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and forwards
|
237
|
|
|
1
|
|
|
—
|
|
|
223
|
|
|
1
|
|
|
—
|
|
||||||
Interest rate swaps for customers
1
|
5,345
|
|
|
18
|
|
|
73
|
|
|
4,550
|
|
|
28
|
|
|
33
|
|
||||||
Foreign exchange
|
324
|
|
|
4
|
|
|
3
|
|
|
913
|
|
|
9
|
|
|
7
|
|
||||||
Total derivatives not designated as hedging instruments
|
5,906
|
|
|
23
|
|
|
76
|
|
|
5,686
|
|
|
38
|
|
|
40
|
|
||||||
Total derivatives
|
$
|
7,119
|
|
|
$
|
23
|
|
|
$
|
76
|
|
|
$
|
6,824
|
|
|
$
|
38
|
|
|
$
|
40
|
|
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
(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
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
$
|
(8
|
)
|
|
$
|
(3
|
)
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps for customers
|
|
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
$
|
12
|
|
|
|
||||||||||||
Foreign exchange
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
13
|
|
|
|
||||||||||||||
Total derivatives
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
(3
|
)
|
|
$
|
25
|
|
|
$
|
—
|
|
|
Amount of derivative gain (loss) recognized/reclassified
|
||||||||||||||||||||||||||||||
|
Three Months Ended September 30, 2017
|
|
Nine Months Ended September 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
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps and forward contracts
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
$
|
(1
|
)
|
|
|
||||||||||||
Interest rate swaps for customers
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
8
|
|
|
|
||||||||||||||
Foreign exchange
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
12
|
|
|
|
||||||||||||||
Total derivatives
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
19
|
|
|
$
|
—
|
|
1
|
Amounts recognized in OCI and reclassified from AOCI represent the effective portion of the derivative gain (loss). For the 12 months following
September 30, 2018
, we estimate that
$(6) million
will be reclassified from AOCI into interest income
|
|
Gain/(loss) recorded in income
|
||||||||||||||||||||||
|
Three Months Ended September 30, 2018
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||
(In millions)
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
||||||||||||
Interest rate swaps
1
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Gain/(loss) recorded in income
|
||||||||||||||||||||||
|
Nine Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||
(In millions)
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
||||||||||||
Interest rate swaps
1
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
1
|
Consists of hedges of benchmark interest rate risk of fixed-rate long-term debt. Gains and losses were recorded in net interest income.
|
8.
|
LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY
|
(In millions)
|
September 30,
2018 |
|
December 31, 2017
|
||||
|
|
|
|
||||
Subordinated notes
|
$
|
247
|
|
|
$
|
247
|
|
Senior notes
|
632
|
|
|
135
|
|
||
Capital lease obligations
|
—
|
|
|
1
|
|
||
Total
|
$
|
879
|
|
|
$
|
383
|
|
(In millions)
|
Net unrealized gains (losses) on investment securities
|
|
Net unrealized gains (losses) on derivatives and other
|
|
Pension and post-retirement
|
|
Total
|
||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2017
|
$
|
(114
|
)
|
|
$
|
(2
|
)
|
|
$
|
(23
|
)
|
|
$
|
(139
|
)
|
OCI (loss) before reclassifications, net of tax
|
(221
|
)
|
|
(3
|
)
|
|
—
|
|
|
(224
|
)
|
||||
Amounts reclassified from AOCI, net of tax
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
OCI (loss)
|
(221
|
)
|
|
(1
|
)
|
|
—
|
|
|
(222
|
)
|
||||
Balance at September 30, 2018
|
$
|
(335
|
)
|
|
$
|
(3
|
)
|
|
$
|
(23
|
)
|
|
$
|
(361
|
)
|
Income tax benefit included in OCI (loss)
|
$
|
(73
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(73
|
)
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2016
|
$
|
(93
|
)
|
|
$
|
2
|
|
|
$
|
(31
|
)
|
|
$
|
(122
|
)
|
OCI before reclassifications, net of tax
|
65
|
|
|
2
|
|
|
—
|
|
|
67
|
|
||||
Amounts reclassified from AOCI, net of tax
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||
OCI
|
65
|
|
|
—
|
|
|
—
|
|
|
65
|
|
||||
Balance at September 30, 2017
|
$
|
(28
|
)
|
|
$
|
2
|
|
|
$
|
(31
|
)
|
|
$
|
(57
|
)
|
Income tax expense included in OCI
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
|
|
Amounts reclassified
from AOCI
1
|
|
Amounts reclassified
from AOCI
1
|
|
Statement of income (SI)
Balance sheet (BS)
|
|
|
||||||||||||
(In millions)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
|||||||||||||
Details about AOCI components
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
Affected line item
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains on derivative instruments
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
SI
|
|
Interest and fees on loans
|
Income tax expense
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
|
|
|
||||
Amounts Reclassified from AOCI
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
|
|
|
1
|
Positive reclassification amounts indicate increases to earnings in the statement of income and decreases to balance sheet assets.
|
9.
|
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES
|
(In millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
||||
Net unfunded commitments to extend credit
1
|
$
|
20,999
|
|
|
$
|
19,583
|
|
Standby letters of credit:
|
|
|
|
||||
Financial
|
673
|
|
|
721
|
|
||
Performance
|
196
|
|
|
196
|
|
||
Commercial letters of credit
|
20
|
|
|
31
|
|
||
Total unfunded lending commitments
|
$
|
21,888
|
|
|
$
|
20,531
|
|
1
|
Net of participations
|
•
|
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 and discovery having been completed, with additional motion practice and expert witness phases being underway.
|
•
|
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. Initial motion practice has been completed and discovery is underway.
|
•
|
a civil suit,
JTS Communities, Inc. et. al v. CB&T, Jun Enkoji and Dawn Satow
, brought against us in the Superior Court for 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. This case is in an early phase with initial motion practice having been completed and discovery is underway.
|
•
|
a civil class action lawsuit,
Evans v. CB&T
, brought against us in the United States District Court for 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. In December 2017, the District Court dismissed all claims against the Bank. In January 2018, the plaintiff filed an appeal with the Court of Appeals for the Ninth Circuit. The appellate briefing process has been completed with a ruling anticipated in 2019.
|
•
|
a Private Attorney General Act (“PAGA”) claim under California law,
Lawson v. CB&T
, brought against us in the Superior Court for the County of San Diego, California, in February 2016. In this case, the plaintiff alleges, on behalf of herself and other current or former employees of the Bank who worked in California on a non-exempt basis, violations by the Bank of California wage and hour laws. The case remains in the early stages of motion practice, to date mainly involving questions of venue and scope of employees covered by the PAGA claims. In March 2018, the Supreme Court of California granted review of an appeal from the intermediate
|
•
|
a civil case,
Lifescan Inc. and Johnson & Johnson Health Care Services v. Jeffrey Smith, et al.
, brought against us in the United States District Court for the District of New Jersey in December 2017. In this case, certain manufacturers and distributors of medical products seek to hold us liable for allegedly fraudulent practices of a borrower of the Bank which filed for bankruptcy protection in 2017. The case is in early phase, with initial motion practice and discovery underway.
|
•
|
The Bank recognizes the incremental cost of obtaining a contract as an expense, when incurred, if the amortization period of the asset that the Bank would have recognized is one year or less.
|
•
|
For performance obligations satisfied over time, if the Bank has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Bank’s performance completed to date, the Bank will generally recognize revenue in the amount to which the Bank has a right to invoice.
|
•
|
The Bank does not generally disclose information about its remaining performance obligations for those performance obligations that have an original expected duration of one year or less, or where the Bank recognizes revenue in the amount to which the Bank has a right to invoice.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Card Fee Income
|
$
|
36
|
|
|
$
|
34
|
|
|
$
|
103
|
|
|
$
|
101
|
|
ATM Fees
|
2
|
|
|
2
|
|
|
7
|
|
|
7
|
|
||||
Other service charges
|
4
|
|
|
4
|
|
|
11
|
|
|
11
|
|
||||
Other Commissions and fees
|
5
|
|
|
4
|
|
|
15
|
|
|
11
|
|
||||
Ending balance
|
$
|
47
|
|
|
$
|
44
|
|
|
$
|
136
|
|
|
$
|
130
|
|
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
14
|
|
|
$
|
16
|
|
|
$
|
11
|
|
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
7
|
|
Other service charges, commissions, and fees
|
19
|
|
|
18
|
|
|
9
|
|
|
9
|
|
|
6
|
|
|
6
|
|
||||||
Wealth management and trust income
|
4
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
1
|
|
||||||
Capital markets and foreign exchange
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
||||||
Total noninterest income from contracts with customers (ASC 606)
|
38
|
|
|
39
|
|
|
22
|
|
|
19
|
|
|
15
|
|
|
15
|
|
||||||
Other noninterest income (Non-ASC 606 customer related)
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
4
|
|
|
4
|
|
||||||
Total customer-related fees
|
38
|
|
|
39
|
|
|
31
|
|
|
28
|
|
|
19
|
|
|
19
|
|
||||||
Other noninterest income (non-customer related)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Total non-interest income
|
38
|
|
|
39
|
|
|
31
|
|
|
28
|
|
|
19
|
|
|
20
|
|
||||||
Other real estate owned gain from sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net interest income
|
177
|
|
|
165
|
|
|
133
|
|
|
122
|
|
|
138
|
|
|
120
|
|
||||||
Total income less interest expense
|
$
|
215
|
|
|
$
|
204
|
|
|
$
|
164
|
|
|
$
|
150
|
|
|
$
|
157
|
|
|
$
|
141
|
|
|
NBAZ
|
|
NSB
|
|
Vectra
|
||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Other service charges, commissions, and fees
|
3
|
|
|
4
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|
3
|
|
||||||
Wealth management and trust income
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Capital markets and foreign exchange
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total noninterest income from contracts with customers (ASC 606)
|
6
|
|
|
7
|
|
|
8
|
|
|
8
|
|
|
4
|
|
|
5
|
|
||||||
Other noninterest income (Non-ASC 606 customer related)
|
3
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||||
Total customer-related fees
|
9
|
|
|
9
|
|
|
10
|
|
|
10
|
|
|
6
|
|
|
7
|
|
||||||
Other noninterest income (non-customer related)
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total non-interest income
|
10
|
|
|
10
|
|
|
10
|
|
|
11
|
|
|
6
|
|
|
7
|
|
||||||
Other real estate owned gain from sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net interest income
|
59
|
|
|
53
|
|
|
38
|
|
|
33
|
|
|
35
|
|
|
32
|
|
||||||
Total income less interest expense
|
$
|
69
|
|
|
$
|
63
|
|
|
$
|
48
|
|
|
$
|
44
|
|
|
$
|
41
|
|
|
$
|
39
|
|
|
TCBW
|
|
Other
|
|
Consolidated Bank
|
||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
42
|
|
|
$
|
42
|
|
Other service charges, commissions, and fees
|
1
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
47
|
|
|
44
|
|
||||||
Wealth management and trust income
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
12
|
|
|
11
|
|
||||||
Capital markets and foreign exchange
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||||
Total noninterest income from contracts with customers (ASC 606)
|
1
|
|
|
1
|
|
|
10
|
|
|
6
|
|
|
104
|
|
|
100
|
|
||||||
Other noninterest income (Non-ASC 606 customer related)
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
21
|
|
|
22
|
|
||||||
Total customer-related fees
|
1
|
|
|
1
|
|
|
11
|
|
|
9
|
|
|
125
|
|
|
122
|
|
||||||
Other noninterest income (non-customer related)
|
—
|
|
|
—
|
|
|
10
|
|
|
14
|
|
|
11
|
|
|
17
|
|
||||||
Total non-interest income
|
1
|
|
|
1
|
|
|
21
|
|
|
23
|
|
|
136
|
|
|
139
|
|
||||||
Other real estate owned gain from sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net interest income
|
14
|
|
|
12
|
|
|
(29
|
)
|
|
(15
|
)
|
|
565
|
|
|
522
|
|
||||||
Total income less interest expense
|
$
|
15
|
|
|
$
|
13
|
|
|
$
|
(8
|
)
|
|
$
|
8
|
|
|
$
|
701
|
|
|
$
|
662
|
|
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
43
|
|
|
$
|
47
|
|
|
$
|
33
|
|
|
$
|
31
|
|
|
$
|
21
|
|
|
$
|
21
|
|
Other service charges, commissions, and fees
|
54
|
|
|
53
|
|
|
28
|
|
|
28
|
|
|
18
|
|
|
18
|
|
||||||
Wealth management and trust income
|
11
|
|
|
11
|
|
|
8
|
|
|
6
|
|
|
3
|
|
|
2
|
|
||||||
Capital markets and foreign exchange
|
4
|
|
|
3
|
|
|
(4
|
)
|
|
(4
|
)
|
|
3
|
|
|
3
|
|
||||||
Total noninterest income from contracts with customers (ASC 606)
|
112
|
|
|
114
|
|
|
65
|
|
|
61
|
|
|
45
|
|
|
44
|
|
||||||
Other noninterest income (Non-ASC 606 customer related)
|
(2
|
)
|
|
(1
|
)
|
|
30
|
|
|
27
|
|
|
12
|
|
|
11
|
|
||||||
Total customer-related fees
|
110
|
|
|
113
|
|
|
95
|
|
|
88
|
|
|
57
|
|
|
55
|
|
||||||
Other noninterest income (non-customer related)
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
||||||
Total non-interest income
|
111
|
|
|
112
|
|
|
95
|
|
|
87
|
|
|
59
|
|
|
56
|
|
||||||
Other real estate owned gain from sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net interest income
|
516
|
|
|
475
|
|
|
385
|
|
|
360
|
|
|
399
|
|
|
355
|
|
||||||
Total income less interest expense
|
$
|
627
|
|
|
$
|
587
|
|
|
$
|
480
|
|
|
$
|
447
|
|
|
$
|
458
|
|
|
$
|
412
|
|
|
NBAZ
|
|
NSB
|
|
Vectra
|
||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
11
|
|
|
$
|
7
|
|
|
$
|
6
|
|
Other service charges, commissions, and fees
|
9
|
|
|
9
|
|
|
9
|
|
|
9
|
|
|
5
|
|
|
5
|
|
||||||
Wealth management and trust income
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
1
|
|
||||||
Capital markets and foreign exchange
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Total noninterest income from contracts with customers (ASC 606)
|
19
|
|
|
20
|
|
|
23
|
|
|
22
|
|
|
13
|
|
|
13
|
|
||||||
Other noninterest income (Non-ASC 606 customer related)
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
5
|
|
|
5
|
|
||||||
Total customer-related fees
|
26
|
|
|
27
|
|
|
30
|
|
|
29
|
|
|
18
|
|
|
18
|
|
||||||
Other noninterest income (non-customer related)
|
3
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Total non-interest income
|
29
|
|
|
29
|
|
|
30
|
|
|
30
|
|
|
18
|
|
|
19
|
|
||||||
Other real estate owned gain from sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net interest income
|
170
|
|
|
152
|
|
|
111
|
|
|
96
|
|
|
101
|
|
|
94
|
|
||||||
Total income less interest expense
|
$
|
199
|
|
|
$
|
181
|
|
|
$
|
141
|
|
|
$
|
126
|
|
|
$
|
119
|
|
|
$
|
113
|
|
|
TCBW
|
|
Other
|
|
Consolidated Bank
|
||||||||||||||||||
(In millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
$
|
127
|
|
Other service charges, commissions, and fees
|
2
|
|
|
2
|
|
|
11
|
|
|
6
|
|
|
136
|
|
|
130
|
|
||||||
Wealth management and trust income
|
—
|
|
|
—
|
|
|
11
|
|
|
7
|
|
|
38
|
|
|
30
|
|
||||||
Capital markets and foreign exchange
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
8
|
|
|
7
|
|
||||||
Total noninterest income from contracts with customers (ASC 606)
|
3
|
|
|
3
|
|
|
27
|
|
|
17
|
|
|
307
|
|
|
294
|
|
||||||
Other noninterest income (Non-ASC 606 customer related)
|
1
|
|
|
—
|
|
|
5
|
|
|
7
|
|
|
65
|
|
|
63
|
|
||||||
Total customer-related fees
|
4
|
|
|
3
|
|
|
32
|
|
|
24
|
|
|
372
|
|
|
357
|
|
||||||
Other noninterest income (non-customer related)
|
—
|
|
|
—
|
|
|
34
|
|
|
44
|
|
|
40
|
|
|
47
|
|
||||||
Total non-interest income
|
4
|
|
|
3
|
|
|
66
|
|
|
68
|
|
|
412
|
|
|
404
|
|
||||||
Other real estate owned gain from sale
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||||
Net interest income
|
38
|
|
|
34
|
|
|
(66
|
)
|
|
(27
|
)
|
|
1,654
|
|
|
1,539
|
|
||||||
Total income less interest expense
|
$
|
42
|
|
|
$
|
37
|
|
|
$
|
1
|
|
|
$
|
42
|
|
|
$
|
2,067
|
|
|
$
|
1,945
|
|
11.
|
RETIREMENT PLANS
|
(In millions)
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
5
|
|
Expected return on plan assets
|
(3
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(9
|
)
|
||||
Partial settlement loss
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Amortization of net actuarial loss
|
—
|
|
|
1
|
|
|
1
|
|
|
4
|
|
||||
Net periodic benefit cost (benefit)
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
12.
|
INCOME TAXES
|
13.
|
NET EARNINGS PER COMMON SHARE
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions, except shares and per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
223
|
|
|
$
|
160
|
|
|
$
|
658
|
|
|
$
|
469
|
|
Less common and preferred dividends
|
66
|
|
|
32
|
|
|
170
|
|
|
89
|
|
||||
Undistributed earnings
|
157
|
|
|
128
|
|
|
488
|
|
|
380
|
|
||||
Less undistributed earnings applicable to nonvested shares
|
1
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||
Undistributed earnings applicable to common shares
|
156
|
|
|
127
|
|
|
484
|
|
|
376
|
|
||||
Distributed earnings applicable to common shares
|
58
|
|
|
24
|
|
|
144
|
|
|
56
|
|
||||
Total earnings applicable to common shares
|
$
|
214
|
|
|
$
|
151
|
|
|
$
|
628
|
|
|
$
|
432
|
|
Weighted average common shares outstanding (in thousands)
|
192,973
|
|
|
200,332
|
|
|
195,079
|
|
|
201,493
|
|
||||
Net earnings per common share
|
$
|
1.11
|
|
|
$
|
0.75
|
|
|
$
|
3.22
|
|
|
$
|
2.14
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Total earnings applicable to common shares
|
$
|
214
|
|
|
$
|
151
|
|
|
$
|
628
|
|
|
$
|
432
|
|
Weighted average common shares outstanding (in thousands)
|
192,973
|
|
|
200,332
|
|
|
195,079
|
|
|
201,493
|
|
||||
Dilutive effect of common stock warrants (in thousands)
|
11,880
|
|
|
7,729
|
|
|
12,555
|
|
|
6,783
|
|
||||
Dilutive effect of stock options (in thousands)
|
912
|
|
|
1,045
|
|
|
1,023
|
|
|
1,090
|
|
||||
Weighted average diluted common shares outstanding (in thousands)
|
205,765
|
|
|
209,106
|
|
|
208,657
|
|
|
209,366
|
|
||||
Net earnings per common share
|
$
|
1.04
|
|
|
$
|
0.72
|
|
|
$
|
3.01
|
|
|
$
|
2.06
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
(In thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
|
|
|
||||
Restricted stock and restricted stock units
|
1,490
|
|
|
1,779
|
|
|
1,651
|
|
|
1,997
|
|
14.
|
OPERATING SEGMENT INFORMATION
|
(In millions)
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
177
|
|
|
$
|
165
|
|
|
$
|
133
|
|
|
$
|
122
|
|
|
$
|
138
|
|
|
$
|
120
|
|
Provision for loan losses
|
2
|
|
|
(15
|
)
|
|
(16
|
)
|
|
33
|
|
|
3
|
|
|
(4
|
)
|
||||||
Net interest income after provision for loan losses
|
175
|
|
|
180
|
|
|
149
|
|
|
89
|
|
|
135
|
|
|
124
|
|
||||||
Noninterest income
|
38
|
|
|
39
|
|
|
31
|
|
|
28
|
|
|
19
|
|
|
20
|
|
||||||
Noninterest expense
|
118
|
|
|
107
|
|
|
84
|
|
|
86
|
|
|
77
|
|
|
74
|
|
||||||
Income (loss) before income taxes
|
$
|
95
|
|
|
$
|
112
|
|
|
$
|
96
|
|
|
$
|
31
|
|
|
$
|
77
|
|
|
$
|
70
|
|
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average loans
|
$
|
12,607
|
|
|
$
|
12,543
|
|
|
$
|
11,328
|
|
|
$
|
11,170
|
|
|
$
|
9,985
|
|
|
$
|
9,575
|
|
Total average deposits
|
15,845
|
|
|
15,773
|
|
|
11,185
|
|
|
10,862
|
|
|
11,335
|
|
|
11,021
|
|
(In millions)
|
TCBW
|
|
Other
|
|
Consolidated Bank
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
14
|
|
|
$
|
12
|
|
|
$
|
(29
|
)
|
|
$
|
(15
|
)
|
|
$
|
565
|
|
|
$
|
522
|
|
Provision for loan losses
|
—
|
|
|
3
|
|
|
—
|
|
|
(1
|
)
|
|
(11
|
)
|
|
5
|
|
||||||
Net interest income after provision for loan losses
|
14
|
|
|
9
|
|
|
(29
|
)
|
|
(14
|
)
|
|
576
|
|
|
517
|
|
||||||
Noninterest income
|
1
|
|
|
1
|
|
|
21
|
|
|
23
|
|
|
136
|
|
|
139
|
|
||||||
Noninterest expense
|
6
|
|
|
5
|
|
|
35
|
|
|
43
|
|
|
420
|
|
|
413
|
|
||||||
Income (loss) before income taxes
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
(43
|
)
|
|
$
|
(34
|
)
|
|
$
|
292
|
|
|
$
|
243
|
|
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average loans
|
$
|
1,136
|
|
|
$
|
939
|
|
|
$
|
344
|
|
|
$
|
308
|
|
|
$
|
45,368
|
|
|
$
|
43,832
|
|
Total average deposits
|
1,086
|
|
|
1,098
|
|
|
2,025
|
|
|
1,318
|
|
|
53,575
|
|
|
51,921
|
|
(In millions)
|
Zions Bank
|
|
Amegy
|
|
CB&T
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
516
|
|
|
$
|
475
|
|
|
$
|
385
|
|
|
$
|
360
|
|
|
$
|
399
|
|
|
$
|
355
|
|
Provision for loan losses
|
3
|
|
|
18
|
|
|
(72
|
)
|
|
41
|
|
|
7
|
|
|
(10
|
)
|
||||||
Net interest income after provision for loan losses
|
513
|
|
|
457
|
|
|
457
|
|
|
319
|
|
|
392
|
|
|
365
|
|
||||||
Noninterest income
|
111
|
|
|
112
|
|
|
95
|
|
|
87
|
|
|
59
|
|
|
56
|
|
||||||
Noninterest expense
|
350
|
|
|
327
|
|
|
254
|
|
|
259
|
|
|
231
|
|
|
225
|
|
||||||
Income (loss) before income taxes
|
$
|
274
|
|
|
$
|
242
|
|
|
$
|
298
|
|
|
$
|
147
|
|
|
$
|
220
|
|
|
$
|
196
|
|
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average loans
|
$
|
12,565
|
|
|
$
|
12,505
|
|
|
$
|
11,362
|
|
|
$
|
10,890
|
|
|
$
|
9,941
|
|
|
$
|
9,453
|
|
Total average deposits
|
15,847
|
|
|
16,001
|
|
|
11,022
|
|
|
11,131
|
|
|
11,213
|
|
|
10,953
|
|
(In millions)
|
TCBW
|
|
Other
|
|
Consolidated Bank
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
SELECTED INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
38
|
|
|
$
|
34
|
|
|
$
|
(66
|
)
|
|
$
|
(27
|
)
|
|
$
|
1,654
|
|
|
$
|
1,539
|
|
Provision for loan losses
|
2
|
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
(46
|
)
|
|
35
|
|
||||||
Net interest income after provision for loan losses
|
36
|
|
|
32
|
|
|
(67
|
)
|
|
(26
|
)
|
|
1,700
|
|
|
1,504
|
|
||||||
Noninterest income
|
4
|
|
|
3
|
|
|
66
|
|
|
68
|
|
|
412
|
|
|
404
|
|
||||||
Noninterest expense
|
16
|
|
|
16
|
|
|
106
|
|
|
114
|
|
|
1,259
|
|
|
1,232
|
|
||||||
Income (loss) before income taxes
|
$
|
24
|
|
|
$
|
19
|
|
|
$
|
(107
|
)
|
|
$
|
(72
|
)
|
|
$
|
853
|
|
|
$
|
676
|
|
SELECTED AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average loans
|
$
|
1,113
|
|
|
$
|
909
|
|
|
$
|
336
|
|
|
$
|
244
|
|
|
$
|
45,159
|
|
|
$
|
43,218
|
|
Total average deposits
|
1,069
|
|
|
1,098
|
|
|
1,722
|
|
|
1,227
|
|
|
52,827
|
|
|
52,155
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total number
of shares
repurchased
1
|
|
Average
price paid
per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value of shares that may yet be
purchased under the plan
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
July
|
|
|
1,001,554
|
|
|
|
$
|
51.93
|
|
|
|
1,000,000
|
|
|
|
|
$
|
133,072,690
|
|
|
August
|
|
|
2,506,052
|
|
|
|
53.23
|
|
|
|
2,500,120
|
|
|
|
|
325
|
|
|
||
September
|
|
|
855
|
|
|
|
53.05
|
|
|
|
|
|
|
|
325
|
|
|
|||
Third quarter
|
|
|
3,508,461
|
|
|
|
52.86
|
|
|
|
3,500,120
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
Amended and Restated Agreement and Plan of Merger, dated as of July 10, 2018, by and between Zions Bancorporation and ZB, National Association, incorporated by reference to Exhibit 2.1 of Form 8-K filed on October 2, 2018.
|
*
|
|
|
|
|
|
|
Second Amended and Restated Articles of Association of Zions Bancorporation, National Association, incorporated by reference to Exhibit 3.1 of Form 8-K filed on October 2, 2018.
|
*
|
|
|
|
|
|
|
Amended and Restated Bylaws of Zions Bancorporation, National Association, incorporated by reference to Exhibit 3.2 of Form 8-K filed on October 2, 2018.
|
*
|
|
|
|
|
|
|
Second Supplemental Indenture, dated as of September 30, 2018, by and among The Bank of New York Mellon Trust Company, N.A., as Trustee, ZB, National Association and Zions Bancorporation, incorporated by reference to Exhibit 4.1 of Form 8-K filed on October 2, 2018.
|
*
|
|
|
|
|
|
|
Fourth Supplemental Indenture, dated as of September 30, 2018, by and among The Bank of New York Mellon Trust Company, N.A., as Trustee, ZB, National Association and Zions Bancorporation, incorporated by reference to Exhibit 4.2 of Form 8-K filed on October 2, 2018.
|
*
|
|
|
|
|
|
|
First Amendment to Warrant Agreement, dated as of September 30, 2018, by and between Zions Bancorporation and ZB, National Association (filed herewith).
|
|
|
|
|
|
|
|
Third Amendment to the Zions Bancorporation Pension Plan, dated October 30, 2017 (filed herewith).
|
|
|
|
|
|
|
|
Seventh Amendment to the Trust Agreement between Fidelity Management Trust Company and Zions Bancorporation for the Deferred Compensation Plans, effective September 30, 2018 (filed herewith).
|
|
|
|
|
|
|
|
Eighth Amendment to the Trust Agreement between Fidelity Management Trust Company and Zions Bancorporation for the Payshelter 401(k) and Employee Stock Ownership Plan, effective September 30, 2018 (filed herewith).
|
|
|
|
|
|
|
|
Certification by Chief Executive Officer required by Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (filed herewith).
|
|
|
|
|
|
|
|
Certification by Chief Financial Officer required by Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (filed herewith).
|
|
|
|
|
|
|
|
Certification by Chief Executive Officer and Chief Financial Officer required by Sections 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m) and 18 U.S.C. Section 1350 (furnished herewith).
|
|
|
|
|
|
|
101
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, (ii) the Consolidated Statements of Income for the three months ended September 30, 2018 and September 30, 2017 and the nine months ended September 30, 2018 and September 30, 2017, (iii) the Consolidated Statements of Comprehensive Income for the three months ended September 30, 2018 and September 30, 2017 and the nine months ended September 30, 2018 and September 30, 2017, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended September 30, 2018 and September 30, 2017, (v) the Consolidated Statements of Cash Flows for the three months ended September 30, 2018 and September 30, 2017 and the nine months ended September 30, 2018 and September 30, 2017 and (vi) the Notes to Consolidated Financial Statements (filed herewith).
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ZIONS BANCORPORATION, NATIONAL ASSOCIATION
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/s/ Harris H. Simmons
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Harris H. Simmons, Chairman and
Chief Executive Officer
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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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By:
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/s/ Harris H. Simmons
Name: Harris H. Simmons Title: Chairman and CEO |
By:
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/s/ Paul E. Burdiss
Name: Paul E. Burdiss Title: Executive Vice President |
By:
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/s/ Paul E. Burdiss
Name: Paul E. Burdiss Title: Executive Vice President |
5.17
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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.
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(a)
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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).
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(b)
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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 Interest Rate as defined in subsections (a) and (b) of Appendix II of the Plan, respectively. The amount so determined will be adjusted, as appropriate, for early commencement by using the applicable interest rate and applicable mortality table required by Code §417(e)(3) for the 2017 Plan Year. The calculation shall be determined as of November 1, 2017, and the benefit shall be paid
commencing in
the month of November, 2017,
or as soon thereafter as is administratively practicable
. The determination of the single sum amount shall not take into account any early retirement subsidy otherwise payable.
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(c)
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If an Eligible Terminated Participant qualifies to receive the single sum payment
as provided in this Section
, 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.
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(d)
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For purposes of this Section, the following terms shall be defined as set forth below:
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(1)
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“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.
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(2)
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"Election Window" shall mean the period beginning on August 1, 2017, and ending on November
24
, 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
24
, 2017, to be considered timely, or if electronic submission is available, delivered no later than midnight, Mountain Time on November
24
, 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.
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(3)
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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).
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(1)
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Replacing all references to “Zions Bancorporation” with “Zions Bancorporation, N.A.”.
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(2)
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Replacing all references to “Zions Bancorporation Restated Deferred Compensation Plan” with “Zions Bancorporation, N.A. Restated Deferred Compensation Plan”, and replacing all references to “Zions Bancorporation Restated Deferred Compensation Plan for Directors” with “Zions Bancorporation, N.A. Restated Deferred Compensation Plan for Directors”.
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(3)
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Replacing all references to “Zions Bancorporation Deferred Compensation Plans Master Trust” with “Zions Bancorporation, N.A. Deferred Compensation Plans Master Trust”.
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(4)
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Restating Section 1(y),
“Plan”
, in its entirety, as follows:
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(5)
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Restating Section 1(dd),
“Sponsor”
, in its entirety, as follows:
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(6)
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Restating Section 1(ee),
“Trust”
, in its entirety, as follows:
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ZIONS BANCORPORATION, N.A.
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FIDELITY MANAGEMENT TRUST COMPANY
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(1)
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Replacing all references to “Zions Bancorporation” with “Zions Bancorporation, N.A.”.
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(2)
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Replacing all references to “Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan” with “Zions Bancorporation, N.A. Payshelter 401(k) and Employee Stock Ownership Plan”.
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(3)
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Replacing all references to “Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan Trust” with “Zions Bancorporation, N.A. Payshelter 401(k) and Employee Stock Ownership Plan Trust”.
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(4)
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Restating Section 1(bb), “Plan”, in its entirety, as follows:
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(5)
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Restating Section 1(hh), “Sponsor”, in its entirety, as follows:
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(6)
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Restating Section 1(kk), “Trust”, in its entirety, as follows:
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ZIONS BANCORPORATION, N.A.
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FIDELITY MANAGEMENT TRUST
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1.
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I have reviewed this quarterly report on Form 10-Q of Zions Bancorporation, National Association;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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/ Harris H. Simmons
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Harris H. Simmons, Chairman and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Zions Bancorporation, National Association;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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):
|
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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