Zions Bancorporation, N.A. reports: 4Q22 Net Earnings of $277 million, diluted EPS of $1.84 |
compared with 4Q21 Net Earnings of $207 million, diluted EPS of $1.34, and 3Q22 Net Earnings of $211 million, diluted EPS of $1.40 |
$1.84 | $277 million | 3.53% | 9.7% |
Net earningsper diluted common share
| Net earnings | Net interest margin ("NIM") |
Estimated Common Equity Tier 1 ratio |
FOURTH QUARTER HIGHLIGHTS¹ | ||
Net Interest Income and NIM |
•
| Net interest income was $720 million, up 30% |
•
| NIM was 3.53%, compared with 2.58% | |
Operating Performance |
•
| Pre-provision net revenue² ("PPNR") was $412 million, up 36%; adjusted PPNR² was $420 million, up 46% |
•
| Customer-related noninterest income was $153 million, up 1% | |
•
| Noninterest expense was $471 million, up 5%; adjusted noninterest expense² was $472 million, up 6% | |
•
| The efficiency ratio² was 52.9%, compared with 60.8% | |
Loans and Credit Quality |
•
| Loans and leases were $55.7 billion, up 9%; and excluding PPP, loans and leases were $55.5 billion, up 13% |
•
| The provision for credit losses was $43 million, compared with $25 million | |
•
| The allowance for credit losses was 1.15% of loans (ex-PPP), compared with 1.13% of loans (ex-PPP) | |
•
|
Nonperforming assets3 were $149 million, or 0.3%, of loans, compared with $272 million, or 0.5%, of loans
| |
Deposits |
•
| Deposits were $71.7 billion, down 13%, and the loan-to-deposit ratio was 78%, compared with 61% |
Capital |
•
| The estimated CET1 capital ratio was 9.7%, compared with 10.2% |
•
| Shares of common stock repurchased during the quarter were 1.0 million for $50 million |
CEO COMMENTARY |
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "We're pleased with the quarterly and annual financial results, which were characterized by solid loan growth, exceptional credit quality, and a stronger net interest margin, reflecting a normalization of interest rate levels. Although total deposits continued to decline from recent 'surge' levels that resulted from considerable fiscal and monetary stimulus, adjusted pre-provision net revenue for the quarter increased 46% to $420 million, despite a $42 million reduction in net interest income from PPP loans, which now constitute a de minimis portion of our loan portfolio."
Mr. Simmons continued, "Though our quarterly operating results were strong, we continued to build our loss reserves due to both continued loan growth and the prospect of a slowing or recessionary economic environment in coming months. Nevertheless, we remain optimistic that we're well prepared for a more challenging economy, and we expect the coming year to reflect strong results."
|
OPERATING PERFORMANCE2
|
(In millions) |
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||
2022 | 2021 | 2022 | 2021 | |||||
Adjusted PPNR | $ | 420 | $ | 288 | $ | 1,312 | $ | 1,121 |
Net charge-offs (recoveries) | $ | (3) | $ | 1 | $ | 39 | $ | 6 |
Efficiency ratio | 52.9% | 60.8% | 58.8% | 60.8% | ||||
Weighted average diluted shares | 148.8 | 153.6 | 150.3 | 160.2 |
Net Interest Income and Margin
| ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Interest and fees on loans | $ | 656 | $ | 551 | $ | 471 | $ | 105 | 19 | % | $ | 185 | 39 | % |
Interest on money market investments | 39 | 24 | 7 | 15 | 63 | 32 | NM | |||||||
Interest on securities | 140 | 132 | 88 | 8 | 6 | 52 | 59 | |||||||
Total interest income
| 835 | 707 | 566 | 128 | 18 | 269 | 48 | |||||||
Interest on deposits | 38 | 19 | 7 | 19 | NM | 31 | NM | |||||||
Interest on short- and long-term borrowings | 77 | 25 | 6 | 52 | NM | 71 | NM | |||||||
Total interest expense
| 115 | 44 | 13 | 71 | NM | 102 | NM | |||||||
Net interest income
| $ | 720 | $ | 663 | $ | 553 | $ | 57 | 9 | $ | 167 | 30 | ||
bps | bps | |||||||||||||
Yield on interest-earning assets1
| 4.09 | % | 3.45 | % | 2.64 | % | 64 | 145 | ||||||
Rate paid on total deposits and interest-bearing liabilities1
| 0.56 | % | 0.22 | % | 0.06 | % | 34 | 50 | ||||||
Cost of total deposits1
| 0.20 | % | 0.10 | % | 0.03 | % | 10 | 17 | ||||||
Net interest margin1
| 3.53 | % | 3.24 | % | 2.58 | % | 29 | 95 |
Noninterest Income
| ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Commercial account fees | $ | 41 | $ | 40 | $ | 34 | $ | 1 | 3 | % | $ | 7 | 21 | % |
Card fees | 27 | 27 | 25 | - | - | 2 | 8 | |||||||
Retail and business banking fees | 16 | 17 | 19 | (1) | (6) | (3) | (16) | |||||||
Loan-related fees and income | 19 | 18 | 22 | 1 | 6 | (3) | (14) | |||||||
Capital markets and foreign exchange fees | 22 | 25 | 24 | (3) | (12) | (2) | (8) | |||||||
Wealth management fees | 14 | 14 | 13 | - | - | 1 | 8 | |||||||
Other customer-related fees | 14 | 15 | 15 | (1) | (7) | (1) | (7) | |||||||
Customer-related noninterest income | 153 | 156 | 152 | (3) | (2) | 1 | 1 | |||||||
Fair value and nonhedge derivative income (loss) | (4) | 4 | (1) | (8) | NM | (3) | NM | |||||||
Dividends and other income (loss) | 9 | (1) | 19 | 10 | NM | (10) | (53) | |||||||
Securities gains (losses), net | (5) | 6 | 20 | (11) | NM | (25) | NM | |||||||
Total noninterest income
| $ | 153 | $ | 165 | $ | 190 | $ | (12) | (7) | $ | (37) | (19) |
Noninterest Expense
| ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Salaries and employee benefits | $ | 304 | $ | 312 | $ | 282 | $ | (8) | (3) | % | $ | 22 | 8 | % |
Technology, telecom, and information processing | 51 | 53 | 51 | (2) | (4) | - | - | |||||||
Occupancy and equipment, net | 40 | 38 | 38 | 2 | 5 | 2 | 5 | |||||||
Professional and legal services | 15 | 14 | 16 | 1 | 7 | (1) | (6) | |||||||
Marketing and business development | 11 | 11 | 20 | - | - | (9) | (45) | |||||||
Deposit insurance and regulatory expense | 14 | 13 | 9 | 1 | 8 | 5 | 56 | |||||||
Credit-related expense | 8 | 8 | 7 | - | - | 1 | 14 | |||||||
Other real estate expense, net | - | - | - | - | NM | - | NM | |||||||
Other | 28 | 30 | 26 | (2) | (7) | 2 | 8 | |||||||
Total noninterest expense
| $ | 471 | $ | 479 | $ | 449 | $ | (8) | (2) | $ | 22 | 5 | ||
Adjusted noninterest expense 1
| $ | 472 | $ | 477 | $ | 446 | $ | (5) | (1) | $ | 26 | 6 |
Loans and Leases | ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Loans held for sale | $ | 8 | $ | 25 | $ | 83 | $ | (17) | (68) | % | $ | (75) | (90) | % |
Loans and leases: | ||||||||||||||
Commercial - excluding PPP loans
| $ | 30,298 | $ | 29,506 | $ | 26,585 | $ | 792 | 3 | $ | 3,713 | 14 | ||
Commercial - PPP loans
| 197 | 306 | 1,855 | (109) | (36) | (1,658) | (89) | |||||||
Commercial real estate
| 12,739 | 12,356 | 12,198 | 383 | 3 | 541 | 4 | |||||||
Consumer
| 12,419 | 11,750 | 10,213 | 669 | 6 | 2,206 | 22 | |||||||
Loans and leases, net of unearned income and fees | 55,653 | 53,918 | 50,851 | 1,735 | 3 | 4,802 | 9 | |||||||
Less allowance for loan losses
| 575 | 541 | 513 | 34 | 6 | 62 | 12 | |||||||
Loans and leases held for investment, net of allowance
| $ | 55,078 | $ | 53,377 | $ | 50,338 | $ | 1,701 | 3 | $ | 4,740 | 9 | ||
Unfunded lending commitments | $ | 30,490 | $ | 29,743 | $ | 26,661 | $ | 747 | 3 | $ | 3,829 | 14 |
Credit Quality | ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Provision for credit losses | $ | 43 | $ | 71 | $ | 25 | $ | (28) | (39) | % | $ | 18 | 72 | % |
Allowance for credit losses | 636 | 590 | 553 | 46 | 8 | 83 | 15 | |||||||
Net loan and lease charge-offs (recoveries) | (3) | 27 | 1 | (30) | NM | (4) | NM | |||||||
Nonperforming assets2
| 149 | 151 | 272 | (2) | (1) | (123) | (45) | |||||||
Classified loans | 929 | 965 | 1,236 | (36) | (4) | (307) | (25) | |||||||
4Q22 | 3Q22 | 4Q21 | bps | bps | ||||||||||
Ratio of ACL to loans1 and leases outstanding, at period end
| 1.14 | % | 1.09 | % | 1.09 | % | 5 | 5 | ||||||
Ratio of ACL to loans1 and leases outstanding (ex-PPP), at period end
| 1.15 | % | 1.10 | % | 1.13 | % | 5 | 2 | ||||||
Annualized ratio of net loan and lease charge-offs to average loans | (0.02) | % | 0.20 | % | 0.01 | % | (22) | (3) | ||||||
Ratio of classified loans to total loans and leases (ex-PPP) | 1.68 | % | 1.80 | % | 2.52 | % | (12) | (84) | ||||||
Ratio of nonperforming assets1 and accruing loans 90 days or more past due to loans and leases and other real estate owned
| 0.28 | % | 0.32 | % | 0.55 | % | (4) | (27) |
Deposits and Borrowed Funds
| ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Noninterest-bearing demand | $ | 35,777 | $ | 39,133 | $ | 41,053 | $ | (3,356) | (9) | % | $ | (5,276) | (13) | % |
Interest-bearing: | ||||||||||||||
Savings and money market
| 33,566 | 35,389 | 40,114 | (1,823) | (5) | (6,548) | (16) | |||||||
Time
| 2,309 | 1,473 | 1,622 | 836 | 57 | 687 | 42 | |||||||
Total deposits | $ | 71,652 | $ | 75,995 | $ | 82,789 | $ | (4,343) | (6) | $ | (11,137) | (13) | ||
Borrowed funds: | ||||||||||||||
Federal funds purchased and other short-term borrowings | $ | 10,417 | $ | 5,363 | $ | 903 | $ | 5,054 | 94 | $ | 9,514 | NM | ||
Long-term debt | 651 | 647 | 1,012 | 4 | 1 | (361) | (36) | |||||||
Total borrowed funds | $ | 11,068 | $ | 6,010 | $ | 1,915 | $ | 5,058 | 84 | $ | 9,153 | NM |
Shareholders' Equity | ||||||||||||||
4Q22 - 3Q22 | 4Q22 - 4Q21 | |||||||||||||
(In millions, except share data) | 4Q22 | 3Q22 | 4Q21 | $ | % | $ | % | |||||||
Shareholders' equity: | ||||||||||||||
Preferred stock
| $ | 440 | $ | 440 | $ | 440 | $ | - | - | % | $ | - | - | % |
Common stock and additional paid-in capital
| 1,754 | 1,799 | 1,928 | (45) | (3) | (174) | (9) | |||||||
Retained earnings
| 5,811 | 5,597 | 5,175 | 214 | 4 | 636 | 12 | |||||||
Accumulated other comprehensive income (loss) | (3,112) | (3,140) | (80) | 28 | 1 | (3,032) | NM | |||||||
Total shareholders' equity | $ | 4,893 | $ | 4,696 | $ | 7,463 | $ | 197 | 4 | $ | (2,570) | (34) | ||
Capital distributions: | ||||||||||||||
Common dividends paid | $ | 62 | $ | 62 | $ | 58 | $ | - | - | $ | 4 | 7 | ||
Bank common stock repurchased | 50 | 50 | 325 | - | - | (275) | (85) | |||||||
Total capital distributed to common shareholders | $ | 112 | $ | 112 | $ | 383 | $ | - | - | $ | (271) | (71) | ||
shares | % | shares | % | |||||||||||
Weighted average diluted common shares outstanding (in thousands)
| 148,829 | 149,792 | 153,635 | (963) | (1) | % | (4,806) | (3) | % | |||||
Common shares outstanding, at period end (in thousands) | 148,664 | 149,611 | 151,625 | (947) | (1) | (2,961) | (2) |
Three Months Ended | ||||||||||
(In millions, except share, per share, and ratio data) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
BALANCE SHEET1
| ||||||||||
Loans held for investment, net of allowance | $ | 55,078 | $ | 53,377 | $ | 51,862 | $ | 50,764 | $ | 50,338 |
Total assets | 89,545 | 88,474 | 87,784 | 91,126 | 93,200 | |||||
Deposits | 71,652 | 75,995 | 79,061 | 82,351 | 82,789 | |||||
Total shareholders' equity | 4,893 | 4,696 | 5,632 | 6,294 | 7,463 | |||||
STATEMENT OF INCOME | ||||||||||
Net earnings applicable to common shareholders
| $ | 277 | $ | 211 | $ | 195 | $ | 195 | $ | 207 |
Net interest income | 720 | 663 | 593 | 544 | 553 | |||||
Taxable-equivalent net interest income 2
| 730 | 673 | 602 | 552 | 563 | |||||
Total noninterest income | 153 | 165 | 172 | 142 | 190 | |||||
Total noninterest expense | 471 | 479 | 464 | 464 | 449 | |||||
Pre-provision net revenue 2
| 412 | 359 | 310 | 230 | 304 | |||||
Adjusted pre-provision net revenue 2
| 420 | 351 | 300 | 241 | 288 | |||||
Provision for credit losses | 43 | 71 | 41 | (33) | 25 | |||||
SHARE AND PER COMMON SHARE AMOUNTS | ||||||||||
Net earnings per diluted common share | $ | 1.84 | $ | 1.40 | $ | 1.29 | $ | 1.27 | $ | 1.34 |
Dividends | 0.41 | 0.41 | 0.38 | 0.38 | 0.38 | |||||
Book value per common share 1
| 29.95 | 28.45 | 34.50 | 38.68 | 46.32 | |||||
Tangible book value per common share 1, 2
| 43.72 | 42.52 | 41.72 | 40.87 | 40.15 | |||||
Weighted average share price | 49.85 | 54.50 | 56.62 | 68.23 | 63.69 | |||||
Weighted average diluted common shares outstanding (in thousands)
| 148,829 | 149,792 | 150,838 | 151,687 | 153,635 | |||||
Common shares outstanding (in thousands) 1
| 148,664 | 149,611 | 150,471 | 151,348 | 151,625 | |||||
SELECTED RATIOS AND OTHER DATA | ||||||||||
Return on average assets | 1.27 | % | 0.97 | % | 0.91 | % | 0.90 | % | 0.92 | % |
Return on average common equity | 25.4 | % | 15.8 | % | 14.0 | % | 11.8 | % | 11.5 | % |
Return on average tangible common equity 2
| 16.9 | % | 13.2 | % | 12.5 | % | 12.9 | % | 13.5 | % |
Net interest margin | 3.53 | % | 3.24 | % | 2.87 | % | 2.60 | % | 2.58 | % |
Cost of total deposits | 0.20 | % | 0.10 | % | 0.03 | % | 0.03 | % | 0.03 | % |
Efficiency ratio 2
| 52.9 | % | 57.6 | % | 60.7 | % | 65.8 | % | 60.8 | % |
Effective tax rate | 20.9 | % | 21.9 | % | 21.9 | % | 20.4 | % | 20.8 | % |
Ratio of nonperforming assets to loans and leases and other real estate owned
| 0.27 | % | 0.28 | % | 0.38 | % | 0.49 | % | 0.53 | % |
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | (0.02) | % | 0.20 | % | 0.07 | % | 0.05 | % | 0.01 | % |
Ratio of total allowance for credit losses to loans and leases outstanding 1
| 1.14 | % | 1.09 | % | 1.04 | % | 1.00 | % | 1.09 | % |
Full-time equivalent employees
| 9,989 | 9,920 | 9,895 | 9,724 | 9,685 | |||||
CAPITAL RATIOS AND DATA 1
| ||||||||||
Common equity tier 1 capital 3
| $ | 6,480 | $ | 6,342 | $ | 6,257 | $ | 6,166 | $ | 6,068 |
Risk-weighted assets 3
| 67,125 | 65,982 | 63,424 | 61,427 | 59,600 | |||||
Tangible common equity ratio 2
| 7.1 | % | 7.0 | % | 7.1 | % | 6.8 | % | 6.6 | % |
Common equity tier 1 capital ratio 3
| 9.7 | % | 9.6 | % | 9.9 | % | 10.0 | % | 10.2 | % |
Tier 1 leverage ratio 3
| 7.6 | % | 7.5 | % | 7.4 | % | 7.3 | % | 7.2 | % |
Tier 1 risk-based capital ratio 3
| 10.3 | % | 10.3 | % | 10.6 | % | 10.8 | % | 10.9 | % |
Total risk-based capital ratio 3
| 12.0 | % | 12.0 | % | 12.3 | % | 12.5 | % | 12.8 | % |
(In millions, shares in thousands) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 657 | $ | 549 | $ | 559 | $ | 700 | $ | 595 |
Money market investments: | ||||||||||
Interest-bearing deposits | 1,340 | 1,291 | 1,249 | 5,093 | 10,283 | |||||
Federal funds sold and security resell agreements | 2,426 | 2,797 | 2,273 | 2,345 | 2,133 | |||||
Investment securities: | ||||||||||
Held-to-maturity1, at amortized cost
| 11,126 | 423 | 614 | 439 | 441 | |||||
Available-for-sale, at fair value | 11,915 | 23,233 | 25,297 | 26,145 | 24,048 | |||||
Trading account, at fair value | 465 | 526 | 304 | 382 | 372 | |||||
Total securities, net of allowance | 23,506 | 24,182 | 26,215 | 26,966 | 24,861 | |||||
Loans held for sale | 8 | 25 | 42 | 43 | 83 | |||||
Loans and leases, net of unearned income and fees | 55,653 | 53,918 | 52,370 | 51,242 | 50,851 | |||||
Less allowance for loan losses | 575 | 541 | 508 | 478 | 513 | |||||
Loans held for investment, net of allowance | 55,078 | 53,377 | 51,862 | 50,764 | 50,338 | |||||
Other noninterest-bearing investments | 1,130 | 983 | 840 | 829 | 851 | |||||
Premises, equipment and software, net | 1,408 | 1,388 | 1,372 | 1,346 | 1,319 | |||||
Goodwill and intangibles | 1,065 | 1,034 | 1,015 | 1,015 | 1,015 | |||||
Other real estate owned | 3 | 3 | - | 4 | 8 | |||||
Other assets | 2,924 | 2,845 | 2,357 | 2,021 | 1,714 | |||||
Total assets | $ | 89,545 | $ | 88,474 | $ | 87,784 | $ | 91,126 | $ | 93,200 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing demand | $ | 35,777 | $ | 39,133 | $ | 40,289 | $ | 41,937 | $ | 41,053 |
Interest-bearing: | ||||||||||
Savings and money market | 33,566 | 35,389 | 37,346 | 38,864 | 40,114 | |||||
Time | 2,309 | 1,473 | 1,426 | 1,550 | 1,622 | |||||
Total deposits | 71,652 | 75,995 | 79,061 | 82,351 | 82,789 | |||||
Federal funds purchased and other short-term borrowings
| 10,417 | 5,363 | 1,018 | 638 | 903 | |||||
Long-term debt | 651 | 647 | 671 | 689 | 1,012 | |||||
Reserve for unfunded lending commitments | 61 | 49 | 38 | 36 | 40 | |||||
Other liabilities | 1,871 | 1,724 | 1,364 | 1,118 | 993 | |||||
Total liabilities | 84,652 | 83,778 | 82,152 | 84,832 | 85,737 | |||||
Shareholders' equity: | ||||||||||
Preferred stock, without par value; authorized 4,400 shares | 440 | 440 | 440 | 440 | 440 | |||||
Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital
| 1,754 | 1,799 | 1,845 | 1,889 | 1,928 | |||||
Retained earnings | 5,811 | 5,597 | 5,447 | 5,311 | 5,175 | |||||
Accumulated other comprehensive income (loss) | (3,112) | (3,140) | (2,100) | (1,346) | (80) | |||||
Total shareholders' equity | 4,893 | 4,696 | 5,632 | 6,294 | 7,463 | |||||
Total liabilities and shareholders' equity | $ | 89,545 | $ | 88,474 | $ | 87,784 | $ | 91,126 | $ | 93,200 |
1 Held-to-maturity (fair value)
| $ | 11,239 | $ | 379 | $ | 578 | $ | 414 | $ | 443 |
2 Common shares (issued and outstanding)
| 148,664 | 149,611 | 150,471 | 151,348 | 151,625 |
(Unaudited) | Three Months Ended | |||||||||
(In millions, except share and per share amounts) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
Interest income: | ||||||||||
Interest and fees on loans | $ | 656 | $ | 551 | $ | 468 | $ | 437 | $ | 471 |
Interest on money market investments | 39 | 24 | 12 | 6 | 7 | |||||
Interest on securities | 140 | 132 | 128 | 112 | 88 | |||||
Total interest income | 835 | 707 | 608 | 555 | 566 | |||||
Interest expense: | ||||||||||
Interest on deposits | 38 | 19 | 7 | 6 | 7 | |||||
Interest on short- and long-term borrowings | 77 | 25 | 8 | 5 | 6 | |||||
Total interest expense | 115 | 44 | 15 | 11 | 13 | |||||
Net interest income | 720 | 663 | 593 | 544 | 553 | |||||
Provision for credit losses: | ||||||||||
Provision for loan losses | 31 | 60 | 39 | (29) | 23 | |||||
Provision for unfunded lending commitments | 12 | 11 | 2 | (4) | 2 | |||||
Total provision for credit losses | 43 | 71 | 41 | (33) | 25 | |||||
Net interest income after provision for credit losses | 677 | 592 | 552 | 577 | 528 | |||||
Noninterest income: | ||||||||||
Commercial account fees | 41 | 40 | 37 | 41 | 34 | |||||
Card fees | 27 | 27 | 25 | 25 | 25 | |||||
Retail and business banking fees | 16 | 17 | 20 | 20 | 19 | |||||
Loan-related fees and income | 19 | 18 | 21 | 22 | 22 | |||||
Capital markets and foreign exchange fees | 22 | 25 | 21 | 15 | 24 | |||||
Wealth management fees | 14 | 14 | 13 | 14 | 13 | |||||
Other customer-related fees | 14 | 15 | 17 | 14 | 15 | |||||
Customer-related noninterest income | 153 | 156 | 154 | 151 | 152 | |||||
Fair value and nonhedge derivative income (loss) | (4) | 4 | 10 | 6 | (1) | |||||
Dividends and other income (loss) | 9 | (1) | 7 | 2 | 19 | |||||
Securities gains (losses), net | (5) | 6 | 1 | (17) | 20 | |||||
Total noninterest income | 153 | 165 | 172 | 142 | 190 | |||||
Noninterest expense: | ||||||||||
Salaries and employee benefits | 304 | 312 | 307 | 312 | 282 | |||||
Technology, telecom, and information processing | 51 | 53 | 53 | 52 | 51 | |||||
Occupancy and equipment, net | 40 | 38 | 36 | 38 | 38 | |||||
Professional and legal services | 15 | 14 | 14 | 14 | 16 | |||||
Marketing and business development | 11 | 11 | 9 | 8 | 20 | |||||
Deposit insurance and regulatory expense | 14 | 13 | 13 | 10 | 9 | |||||
Credit-related expense | 8 | 8 | 7 | 7 | 7 | |||||
Other real estate expense, net | - | - | - | 1 | - | |||||
Other | 28 | 30 | 25 | 22 | 26 | |||||
Total noninterest expense | 471 | 479 | 464 | 464 | 449 | |||||
Income before income taxes | 359 | 278 | 260 | 255 | 269 | |||||
Income taxes | 75 | 61 | 57 | 52 | 56 | |||||
Net income | 284 | 217 | 203 | 203 | 213 | |||||
Preferred stock dividends | (7) | (6) | (8) | (8) | (6) | |||||
Net earnings applicable to common shareholders | $ | 277 | $ | 211 | $ | 195 | $ | 195 | $ | 207 |
Weighted average common shares outstanding during the period: | ||||||||||
Basic shares (in thousands) | 148,739 | 149,628 | 150,635 | 151,285 | 153,248 | |||||
Diluted shares (in thousands) | 148,829 | 149,792 | 150,838 | 151,687 | 153,635 | |||||
Net earnings per common share: | ||||||||||
Basic | $ | 1.84 | $ | 1.40 | $ | 1.29 | $ | 1.27 | $ | 1.34 |
Diluted | 1.84 | 1.40 | 1.29 | 1.27 | 1.34 |
Year Ended December 31, | ||||||
(In millions, except share and per share amounts) | 2022 | 2021 | 2020 | |||
(Unaudited) | ||||||
Interest income: | ||||||
Interest and fees on loans | $ | 2,112 | $ | 1,935 | $ | 2,050 |
Interest on money market investments | 81 | 21 | 14 | |||
Interest on securities | 512 | 311 | 304 | |||
Total interest income | 2,705 | 2,267 | 2,368 | |||
Interest expense: | ||||||
Interest on deposits | 70 | 30 | 105 | |||
Interest on short- and long-term borrowings | 115 | 29 | 47 | |||
Total interest expense | 185 | 59 | 152 | |||
Net interest income | 2,520 | 2,208 | 2,216 | |||
Provision for credit losses: | ||||||
Provision for loan losses | 101 | (258) | 385 | |||
Provision for unfunded lending commitments | 21 | (18) | 29 | |||
Total provision for credit losses | 122 | (276) | 414 | |||
Net interest income after provision for loan losses | 2,398 | 2,484 | 1,802 | |||
Noninterest income: | ||||||
Commercial account fees | 159 | 137 | 132 | |||
Card fees | 104 | 95 | 82 | |||
Retail and business banking fees | 73 | 74 | 68 | |||
Loan-related fees and income | 80 | 95 | 109 | |||
Capital markets and foreign exchange fees | 83 | 70 | 70 | |||
Wealth management fees | 55 | 50 | 44 | |||
Other customer-related fees | 60 | 54 | 44 | |||
Customer-related noninterest income | 614 | 575 | 549 | |||
Fair value and nonhedge derivative income (loss) | 16 | 14 | (6) | |||
Dividends and other investment income | 17 | 43 | 24 | |||
Securities gains (losses), net | (15) | 71 | 7 | |||
Total noninterest income | 632 | 703 | 574 | |||
Noninterest expense: | ||||||
Salaries and employee benefits | 1,235 | 1,127 | 1,087 | |||
Technology, telecom, and information processing | 209 | 199 | 192 | |||
Occupancy and equipment, net | 152 | 153 | 151 | |||
Professional and legal services | 57 | 72 | 57 | |||
Marketing and business development | 39 | 43 | 61 | |||
Deposit insurance and regulatory expense | 50 | 34 | 33 | |||
Credit-related expense | 30 | 26 | 22 | |||
Other real estate expense, net | 1 | - | 1 | |||
Other | 105 | 87 | 100 | |||
Total noninterest expense | 1,878 | 1,741 | 1,704 | |||
Income before income taxes | 1,152 | 1,446 | 672 | |||
Income taxes | 245 | 317 | 133 | |||
Net income | 907 | 1,129 | 539 | |||
Preferred stock dividends | (29) | (29) | (34) | |||
Net earnings applicable to common shareholders | $ | 878 | $ | 1,100 | $ | 505 |
Weighted average common shares outstanding during the year: | ||||||
Basic shares (in thousands) | 150,064 | 159,913 | 163,737 | |||
Diluted shares (in thousands) | 150,271 | 160,234 | 165,613 | |||
Net earnings per common share: | ||||||
Basic | $ | 5.80 | $ | 6.80 | $ | 3.06 |
Diluted | 5.79 | 6.79 | 3.02 |
(In millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
Commercial: | ||||||||||
Commercial and industrial | $ | 16,180 | $ | 15,656 | $ | 14,989 | $ | 14,356 | $ | 13,867 |
PPP | 197 | 306 | 534 | 1,081 | 1,855 | |||||
Leasing | 386 | 347 | 339 | 318 | 327 | |||||
Owner occupied | 9,371 | 9,279 | 9,208 | 9,026 | 8,733 | |||||
Municipal | 4,361 | 4,224 | 4,113 | 3,944 | 3,658 | |||||
Total commercial | 30,495 | 29,812 | 29,183 | 28,725 | 28,440 | |||||
Commercial real estate: | ||||||||||
Construction and land development | 2,513 | 2,800 | 2,659 | 2,769 | 2,757 | |||||
Term | 10,226 | 9,556 | 9,477 | 9,325 | 9,441 | |||||
Total commercial real estate | 12,739 | 12,356 | 12,136 | 12,094 | 12,198 | |||||
Consumer: | ||||||||||
Home equity credit line | 3,377 | 3,331 | 3,266 | 3,089 | 3,016 | |||||
1-4 family residential | 7,286 | 6,852 | 6,423 | 6,122 | 6,050 | |||||
Construction and other consumer real estate | 1,161 | 973 | 787 | 692 | 638 | |||||
Bankcard and other revolving plans | 471 | 471 | 448 | 410 | 396 | |||||
Other | 124 | 123 | 127 | 110 | 113 | |||||
Total consumer | 12,419 | 11,750 | 11,051 | 10,423 | 10,213 | |||||
Total loans and leases | $ | 55,653 | $ | 53,918 | $ | 52,370 | $ | 51,242 | $ | 50,851 |
(In millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
Nonaccrual loans 1
| $ | 149 | $ | 151 | $ | 201 | $ | 252 | $ | 271 |
Other real estate owned 2
| - | - | - | - | 1 | |||||
Total nonperforming assets | $ | 149 | $ | 151 | $ | 201 | $ | 252 | $ | 272 |
Ratio of nonperforming assets to loans1 and leases and other real estate owned 2
| 0.27 | % | 0.28 | % | 0.38 | % | 0.49 | % | 0.53 | % |
Accruing loans past due 90 days or more | $ | 6 | $ | 20 | $ | 6 | $ | 3 | $ | 8 |
Ratio of accruing loans past due 90 days or more to loans1 and leases
| 0.01 | % | 0.04 | % | 0.01 | % | 0.01 | % | 0.02 | % |
Nonaccrual loans and accruing loans past due 90 days or more
| $ | 155 | $ | 171 | $ | 207 | $ | 255 | $ | 279 |
Ratio of nonperforming assets1 and accruing loans 90 days or more past due to loans and leases and other real estate owned
| 0.28 | % | 0.32 | % | 0.39 | % | 0.50 | % | 0.55 | % |
Accruing loans past due 30-89 days 3
| $ | 93 | $ | 84 | $ | 123 | $ | 93 | $ | 70 |
Restructured loans included in nonaccrual loans | 38 | 39 | 61 | 100 | 105 | |||||
Restructured loans on accrual | 197 | 206 | 214 | 216 | 221 | |||||
Classified loans | 929 | 965 | 1,009 | 1,148 | 1,236 |
Three Months Ended | ||||||||||
(In millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
Allowance for Loan and Lease Losses | ||||||||||
Balance at beginning of period | $ | 541 | $ | 508 | $ | 478 | $ | 513 | $ | 491 |
Provision for loan losses | 31 | 60 | 39 | (29) | 23 | |||||
Loan and lease charge-offs | 9 | 38 | 18 | 17 | 11 | |||||
Less: Recoveries | 12 | 11 | 9 | 11 | 10 | |||||
Net loan and lease charge-offs (recoveries) | (3) | 27 | 9 | 6 | 1 | |||||
Balance at end of period | $ | 575 | $ | 541 | $ | 508 | $ | 478 | $ | 513 |
Ratio of allowance for loan losses to loans1 and leases, at period end
| 1.03 | % | 1.00 | % | 0.97 | % | 0.93 | % | 1.01 | % |
Ratio of allowance for loan losses to nonaccrual loans1 at period end
| 386 | % | 358 | % | 261 | % | 190 | % | 189 | % |
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | (0.02) | % | 0.20 | % | 0.07 | % | 0.05 | % | 0.01 | % |
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans (excluding PPP loans) | (0.02) | % | 0.21 | % | 0.07 | % | 0.05 | % | 0.01 | % |
Reserve for Unfunded Lending Commitments | ||||||||||
Balance at beginning of period | $ | 49 | $ | 38 | $ | 36 | $ | 40 | $ | 38 |
Provision for unfunded lending commitments | 12 | 11 | 2 | (4) | 2 | |||||
Balance at end of period | $ | 61 | $ | 49 | $ | 38 | $ | 36 | $ | 40 |
Allowance for Credit Losses | ||||||||||
Allowance for loan losses | $ | 575 | $ | 541 | $ | 508 | $ | 478 | $ | 513 |
Reserve for unfunded lending commitments | 61 | 49 | 38 | 36 | 40 | |||||
Total allowance for credit losses | $ | 636 | $ | 590 | $ | 546 | $ | 514 | $ | 553 |
Ratio of ACL to loans1 and leases outstanding, at period end
| 1.14 | % | 1.09 | % | 1.04 | % | 1.00 | % | 1.09 | % |
Ratio of ACL to loans1 and leases outstanding (excluding PPP loans), at period end
| 1.15 | % | 1.10 | % | 1.05 | % | 1.02 | % | 1.13 | % |
(In millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
Loans held for sale | $ | - | $ | - | $ | 6 | $ | - | $ | - |
Commercial: | ||||||||||
Commercial and industrial | $ | 56 | $ | 52 | $ | 86 | $ | 112 | $ | 124 |
PPP | 7 | 5 | 1 | 2 | 3 | |||||
Leasing | - | - | - | - | - | |||||
Owner occupied | 24 | 28 | 40 | 53 | 57 | |||||
Municipal | - | - | - | - | - | |||||
Total commercial | 87 | 85 | 127 | 167 | 184 | |||||
Commercial real estate: | ||||||||||
Construction and land development | - | - | - | - | - | |||||
Term | 14 | 20 | 20 | 20 | 20 | |||||
Total commercial real estate | 14 | 20 | 20 | 20 | 20 | |||||
Consumer: | ||||||||||
Home equity credit line | 11 | 10 | 10 | 13 | 14 | |||||
1-4 family residential | 37 | 36 | 38 | 51 | 52 | |||||
Construction and other consumer real estate | - | - | - | - | - | |||||
Bankcard and other revolving plans | - | - | - | 1 | 1 | |||||
Other | - | - | - | - | - | |||||
Total consumer | 48 | 46 | 48 | 65 | 67 | |||||
Total nonaccrual loans | $ | 149 | $ | 151 | $ | 201 | $ | 252 | $ | 271 |
(In millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | |||||
Commercial: | ||||||||||
Commercial and industrial | $ | (4) | $ | 31 | $ | 8 | $ | 6 | $ | 3 |
PPP | - | - | - | - | - | |||||
Leasing | - | - | - | - | - | |||||
Owner occupied | - | - | - | (1) | - | |||||
Municipal | - | - | - | - | - | |||||
Total commercial | (4) | 31 | 8 | 5 | 3 | |||||
Commercial real estate: | ||||||||||
Construction and land development | - | - | - | - | (3) | |||||
Term | - | - | - | - | - | |||||
Total commercial real estate | - | - | - | - | (3) | |||||
Consumer: | ||||||||||
Home equity credit line | - | - | (1) | (1) | - | |||||
1-4 family residential | - | (4) | 1 | 1 | - | |||||
Construction and other consumer real estate | - | - | - | - | - | |||||
Bankcard and other revolving plans | 1 | - | 1 | 1 | - | |||||
Other | - | - | - | - | 1 | |||||
Total consumer loans | 1 | (4) | 1 | 1 | 1 | |||||
Total net charge-offs (recoveries) | $ | (3) | $ | 27 | $ | 9 | $ | 6 | $ | 1 |
(Unaudited) | Three Months Ended | |||||||||||
December 31, 2022 | September 30, 2022 | December 31, 2021 | ||||||||||
(In millions) | Average balance |
Average yield/rate 1 | Average balance |
Average yield/rate 1 | Average balance |
Average yield/rate 1 | ||||||
ASSETS | ||||||||||||
Money market investments: | ||||||||||||
Interest-bearing deposits | $ | 1,264 | 3.67 | % | $ | 1,233 | 2.19 | % | $ | 11,155 | 0.15 | % |
Federal funds sold and security resell agreements | 2,571 | 4.13 | % | 2,511 | 2.66 | % | 2,189 | 0.49 | % | |||
Total money market investments | 3,835 | 3.98 | % | 3,744 | 2.51 | % | 13,344 | 0.21 | % | |||
Securities: | ||||||||||||
Held-to-maturity | 6,463 | 2.22 | % | 560 | 2.88 | % | 451 | 3.18 | % | |||
Available-for-sale | 16,743 | 2.45 | % | 24,892 | 2.05 | % | 21,661 | 1.52 | % | |||
Trading account | 262 | 4.72 | % | 288 | 4.57 | % | 342 | 4.76 | % | |||
Total securities | 23,468 | 2.42 | % | 25,740 | 2.10 | % | 22,454 | 1.61 | % | |||
Loans held for sale | 22 | 2.72 | % | 37 | 5.33 | % | 79 | 1.39 | % | |||
Loans and leases:2
| ||||||||||||
Commercial - excluding PPP loans | 29,805 | 4.64 | % | 28,972 | 4.13 | % | 25,899 | 3.75 | % | |||
Commercial - PPP loans | 251 | 3.38 | % | 408 | 6.28 | % | 2,439 | 7.16 | % | |||
Commercial real estate | 12,547 | 5.90 | % | 12,182 | 4.73 | % | 12,228 | 3.39 | % | |||
Consumer | 12,073 | 4.14 | % | 11,391 | 3.61 | % | 10,125 | 3.29 | % | |||
Total loans and leases | 54,676 | 4.81 | % | 52,953 | 4.17 | % | 50,691 | 3.73 | % | |||
Total interest-earning assets | 82,001 | 4.09 | % | 82,474 | 3.45 | % | 86,568 | 2.64 | % | |||
Cash and due from banks | 638 | 604 | 629 | |||||||||
Allowance for credit losses on loans and debt securities | (546) | (515) | (495) | |||||||||
Goodwill and intangibles | 1,036 | 1,021 | 1,015 | |||||||||
Other assets | 5,770 | 4,923 | 4,168 | |||||||||
Total assets | $ | 88,899 | $ | 88,507 | $ | 91,885 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Savings and money market | $ | 34,386 | 0.37 | % | $ | 36,399 | 0.20 | % | $ | 38,349 | 0.05 | % |
Time | 1,856 | 1.31 | % | 1,441 | 0.32 | % | 1,662 | 0.29 | % | |||
Total interest-bearing deposits | 36,242 | 0.42 | % | 37,840 | 0.20 | % | 40,011 | 0.06 | % | |||
Borrowed funds: | ||||||||||||
Federal funds purchased and other short-term borrowings
| 6,883 | 3.80 | % | 2,885 | 2.33 | % | 641 | 0.07 | % | |||
Long-term debt | 648 | 6.24 | % | 673 | 4.83 | % | 1,017 | 2.54 | % | |||
Total borrowed funds | 7,531 | 4.01 | % | 3,558 | 2.80 | % | 1,658 | 1.59 | % | |||
Total interest-bearing funds | 43,773 | 1.04 | % | 41,398 | 0.43 | % | 41,669 | 0.12 | % | |||
Noninterest-bearing demand deposits | 38,013 | 39,623 | 41,397 | |||||||||
Other liabilities | 2,343 | 1,743 | 1,233 | |||||||||
Total liabilities | 84,129 | 82,764 | 84,299 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred equity | 440 | 440 | 440 | |||||||||
Common equity | 4,330 | 5,303 | 7,146 | |||||||||
Total shareholders' equity | 4,770 | 5,743 | 7,586 | |||||||||
Total liabilities and shareholders' equity | $ | 88,899 | $ | 88,507 | $ | 91,885 | ||||||
Spread on average interest-bearing funds | 3.05 | % | 3.02 | % | 2.52 | % | ||||||
Impact of net noninterest-bearing sources of funds | 0.48 | % | 0.22 | % | 0.06 | % | ||||||
Net interest margin | 3.53 | % | 3.24 | % | 2.58 | % | ||||||
Memo: total loans and leases, excluding PPP loans | 54,425 | 4.82 | % | 52,545 | 4.16 | % | 48,252 | 3.56 | % | |||
Memo: total cost of deposits | 0.20 | % | 0.10 | % | 0.03 | % | ||||||
Memo: total deposits and interest-bearing liabilities | 81,786 | 0.56 | % | 81,021 | 0.22 | % | 83,066 | 0.06 | % |
(Unaudited) | Twelve Months Ended | |||||||||||
December 31, 2022 | December 31, 2021 | December 31, 2020 | ||||||||||
(In millions) | Average balance |
Average
yield/rate 1
| Average balance |
Average yield/rate 1 | Average balance |
Average yield/rate 1 | ||||||
ASSETS | ||||||||||||
Money market investments: | ||||||||||||
Interest-bearing deposits | $ | 3,066 | 0.87 | % | $ | 8,917 | 0.14 | % | $ | 965 | 0.49 | % |
Federal funds sold and security resell agreements | 2,482 | 2.16 | % | 2,129 | 0.40 | % | 2,089 | 0.44 | % | |||
Total money market investments | 5,548 | 1.45 | % | 11,046 | 0.19 | % | 3,054 | 0.46 | % | |||
Securities: | ||||||||||||
Held-to-maturity | 1,999 | 2.36 | % | 562 | 2.97 | % | 618 | 3.54 | % | |||
Available-for-sale | 23,132 | 1.99 | % | 18,365 | 1.59 | % | 14,208 | 2.00 | % | |||
Trading account | 322 | 4.79 | % | 246 | 4.43 | % | 167 | 4.36 | % | |||
Total securities | 25,453 | 2.06 | % | 19,173 | 1.67 | % | 14,993 | 2.09 | % | |||
Loans held for sale | 39 | 2.57 | % | 65 | 2.35 | % | 96 | 3.89 | % | |||
Loans and leases:2
| ||||||||||||
Commercial - excluding PPP loans | 28,500 | 4.02 | % | 25,014 | 3.80 | % | 25,193 | 4.11 | % | |||
Commercial - PPP loans | 725 | 6.53 | % | 4,566 | 5.16 | % | 4,534 | 3.22 | % | |||
Commercial real estate | 12,251 | 4.44 | % | 12,136 | 3.44 | % | 11,854 | 3.87 | % | |||
Consumer | 11,122 | 3.58 | % | 10,267 | 3.44 | % | 11,435 | 3.71 | % | |||
Total loans and leases | 52,598 | 4.06 | % | 51,983 | 3.76 | % | 53,016 | 3.89 | % | |||
Total interest-earning assets | 83,638 | 3.28 | % | 82,267 | 2.79 | % | 71,159 | 3.37 | % | |||
Cash and due from banks | 621 | 605 | 619 | |||||||||
Allowance for credit losses on loans and debt securities | (514) | (612) | (733) | |||||||||
Goodwill and intangibles | 1,022 | 1,015 | 1,015 | |||||||||
Other assets | 4,908 | 4,122 | 3,997 | |||||||||
Total assets | $ | 89,675 | $ | 87,397 | $ | 76,057 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Savings and money market | $ | 37,045 | 0.16 | % | $ | 36,717 | 0.06 | % | $ | 31,100 | 0.19 | % |
Time | 1,594 | 0.58 | % | 2,020 | 0.41 | % | 3,706 | 1.22 | % | |||
Total interest-bearing deposits | 38,639 | 0.18 | % | 38,737 | 0.08 | % | 34,806 | 0.30 | % | |||
Borrowed funds: | ||||||||||||
Federal funds purchased and other short-term borrowings | 2,794 | 3.02 | % | 802 | 0.07 | % | 1,888 | 0.52 | % | |||
Long-term debt | 705 | 4.28 | % | 1,211 | 2.36 | % | 1,544 | 2.45 | % | |||
Total borrowed funds | 3,499 | 3.27 | % | 2,013 | 1.45 | % | 3,432 | 1.39 | % | |||
Total interest-bearing funds | 42,138 | 0.44 | % | 40,750 | 0.14 | % | 38,238 | 0.40 | % | |||
Noninterest-bearing demand deposits | 39,890 | 37,520 | 28,883 | |||||||||
Other liabilities | 1,735 | 1,259 | 1,320 | |||||||||
Total liabilities | 83,763 | 79,529 | 68,441 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred equity | 440 | 497 | 566 | |||||||||
Common equity | 5,472 | 7,371 | 7,050 | |||||||||
Total shareholders' equity | 5,912 | 7,868 | 7,616 | |||||||||
Total liabilities and shareholders' equity | $ | 89,675 | $ | 87,397 | $ | 76,057 | ||||||
Spread on average interest-bearing funds | 2.84 | % | 2.65 | % | 2.97 | % | ||||||
Impact of net noninterest-bearing sources of funds | 0.22 | % | 0.07 | % | 0.18 | % | ||||||
Net interest margin | 3.06 | % | 2.72 | % | 3.15 | % | ||||||
Memo: total loans and leases, excluding PPP loans | 51,873 | 4.03 | % | 47,417 | 3.63 | % | 48,482 | 3.89 | % | |||
Memo: total cost of deposits | 0.09 | % | 0.04 | % | 0.17 | % | ||||||
Memo: total deposits and interest-bearing liabilities | 82,028 | 0.23 | % | 78,270 | 0.07 | % | 67,121 | 0.22 | % |
Three Months Ended | |||||||||||
(Dollar amounts in millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | ||||||
Net earnings applicable to common shareholders (GAAP) | $ | 277 | $ | 211 | $ | 195 | $ | 195 | $ | 207 | |
Adjustments, net of tax: | |||||||||||
Amortization of core deposit and other intangibles | - | 1 | - | - | 1 | ||||||
Net earnings applicable to common shareholders, net of tax | (a) | $ | 277 | $ | 212 | $ | 195 | $ | 195 | $ | 208 |
Average common equity (GAAP) | $ | 4,330 | $ | 5,303 | $ | 5,582 | $ | 6,700 | $ | 7,146 | |
Average goodwill and intangibles | (1,036) | (1,021) | (1,015) | (1,015) | (1,015) | ||||||
Average accumulated other comprehensive loss (income) | 3,192 | 2,075 | 1,702 | 452 | (2) | ||||||
Average tangible common equity (non-GAAP) | (b) | $ | 6,486 | $ | 6,357 | $ | 6,269 | $ | 6,137 | $ | 6,129 |
Number of days in quarter | (c) | 92 | 92 | 91 | 90 | 92 | |||||
Number of days in year | (d) | 365 | 365 | 365 | 365 | 365 | |||||
Return on average tangible common equity (non-GAAP) | (a/b/c)*d | 16.9 | % | 13.2 | % | 12.5 | % | 12.9 | % | 13.5 | % |
(Dollar amounts in millions, except per share amounts) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | ||||||
Total shareholders' equity (GAAP) | $ | 4,893 | $ | 4,696 | $ | 5,632 | $ | 6,294 | $ | 7,463 | |
Goodwill and intangibles | (1,065) | (1,034) | (1,015) | (1,015) | (1,015) | ||||||
Accumulated other comprehensive loss (income) | 3,112 | 3,140 | 2,100 | 1,346 | 80 | ||||||
Tangible equity (non-GAAP) | (a) | 6,940 | 6,802 | 6,717 | 6,625 | 6,528 | |||||
Preferred stock | (440) | (440) | (440) | (440) | (440) | ||||||
Tangible common equity (non-GAAP) | (b) | $ | 6,500 | $ | 6,362 | $ | 6,277 | $ | 6,185 | $ | 6,088 |
Total assets (GAAP) | $ | 89,545 | $ | 88,474 | $ | 87,784 | $ | 91,126 | $ | 93,200 | |
Goodwill and intangibles | (1,065) | (1,034) | (1,015) | (1,015) | (1,015) | ||||||
Accumulated other comprehensive loss (income) | 3,112 | 3,140 | 2,100 | 1,346 | 80 | ||||||
Tangible assets (non-GAAP) | (c) | $ | 91,592 | $ | 90,580 | $ | 88,869 | $ | 91,457 | $ | 92,265 |
Common shares outstanding (in thousands) | (d) | 148,664 | 149,611 | 150,471 | 151,348 | 151,625 | |||||
Tangible equity ratio (non-GAAP) | (a/c) | 7.6 | % | 7.5 | % | 7.6 | % | 7.2 | % | 7.1 | % |
Tangible common equity ratio (non-GAAP) | (b/c) | 7.1 | % | 7.0 | % | 7.1 | % | 6.8 | % | 6.6 | % |
Tangible book value per common share (non-GAAP) | (b/d) | $ | 43.72 | $ | 42.52 | $ | 41.72 | $ | 40.87 | $ | 40.15 |
Three Months Ended | |||||||||||
(Dollar amounts in millions) |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 | ||||||
Noninterest expense (GAAP) | (a) | $ | 471 | $ | 479 | $ | 464 | $ | 464 | $ | 449 |
Adjustments: | |||||||||||
Severance costs | - | - | 1 | - | - | ||||||
Other real estate expense, net | - | - | - | 1 | - | ||||||
Amortization of core deposit and other intangibles | - | 1 | - | - | 1 | ||||||
SBIC investment success fee accrual 1
| (1) | 1 | - | (1) | 2 | ||||||
Total adjustments | (b) | (1) | 2 | 1 | - | 3 | |||||
Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 472 | $ | 477 | $ | 463 | $ | 464 | $ | 446 |
Net interest income (GAAP) | (d) | $ | 720 | $ | 663 | $ | 593 | $ | 544 | $ | 553 |
Fully taxable-equivalent adjustments | (e) | 10 | 10 | 9 | 8 | 10 | |||||
Taxable-equivalent net interest income (non-GAAP) | (d+e)=(f) | 730 | 673 | 602 | 552 | 563 | |||||
Noninterest income (GAAP) | (g) | 153 | 165 | 172 | 142 | 190 | |||||
Combined income (non-GAAP) | (f+g)=(h) | 883 | 838 | 774 | 694 | 753 | |||||
Adjustments: | |||||||||||
Fair value and nonhedge derivative income (loss) | (4) | 4 | 10 | 6 | (1) | ||||||
Securities gains (losses), net | (5) | 6 | 1 | (17) | 20 | ||||||
Total adjustments | (i) | (9) | 10 | 11 | (11) | 19 | |||||
Adjusted taxable-equivalent revenue (non-GAAP) | (h-i)=(j) | $ | 892 | $ | 828 | $ | 763 | $ | 705 | $ | 734 |
Pre-provision net revenue (PPNR) (non-GAAP) | (h)-(a) | $ | 412 | $ | 359 | $ | 310 | $ | 230 | $ | 304 |
Adjusted PPNR (non-GAAP) | (j)-(c) | 420 | 351 | 300 | 241 | 288 | |||||
Efficiency ratio (non-GAAP) | (c/j) | 52.9 | % | 57.6 | % | 60.7 | % | 65.8 | % | 60.8 | % |
Twelve Months Ended | |||||
(Dollar amounts in millions) |
December 31, 2022 |
December 31, 2021 | |||
Noninterest expense (GAAP) | (a) | $ | 1,878 | $ | 1,741 |
Adjustments: | |||||
Severance costs | 1 | 1 | |||
Other real estate expense | 1 | - | |||
Amortization of core deposit and other intangibles | 1 | 1 | |||
Pension termination-related expense | - | (5) | |||
SBIC investment success fee accrual 1
| (1) | 7 | |||
Total adjustments | (b) | 2 | 4 | ||
Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 1,876 | $ | 1,737 |
Net interest income (GAAP) | (d) | $ | 2,520 | $ | 2,208 |
Fully taxable-equivalent adjustments | (e) | 37 | 32 | ||
Taxable-equivalent net interest income (non-GAAP) | (d+e)=(f) | 2,557 | 2,240 | ||
Noninterest income (GAAP) | (g) | 632 | 703 | ||
Combined income (non-GAAP) | (f+g)=(h) | 3,189 | 2,943 | ||
Adjustments: | |||||
Fair value and nonhedge derivative income (loss) | 16 | 14 | |||
Securities gains (losses), net | (15) | 71 | |||
Total adjustments | (i) | 1 | 85 | ||
Adjusted taxable-equivalent revenue (non-GAAP) | (h-i)=(j) | $ | 3,188 | $ | 2,858 |
Pre-provision net revenue (PPNR) | (h)-(a) | $ | 1,311 | $ | 1,202 |
Adjusted PPNR (non-GAAP) | (j)-(c) | 1,312 | 1,121 | ||
Efficiency ratio (non-GAAP) | (c/j) | 58.8 | % | 60.8 | % |
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Zions Bancorporation published this content on 23 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2023 00:51:00 UTC.