2021 Annual Net Earnings of $1.1 billion, diluted EPS of $6.79, compared with 2020 Annual Net Earnings of $505 million, diluted EPS of $3.02 |
$1.34 | $207 million | 2.58% | 10.2% |
Net earningsper diluted common share
| Net Earnings | Net interest margin ("NIM") |
Common Equity Tier 1 ratio |
FOURTH QUARTER HIGHLIGHTS¹ | ||
Net Interest Income and NIM |
•
| Net interest income was $553 million, compared with $550 million |
•
| NIM was 2.58%, compared with 2.95%, and was impacted by significant deposit growth and an accompanying change in the composition of interest-earning assets | |
Operating Performance |
•
| Pre-provision net revenue ("PPNR") was $304 million, up 2%, and adjusted PPNR² was $288 million, up 3% |
•
| Noninterest expense was $449 million, up 6%, and adjusted noninterest expense² was $446 million, up 5%, and included a $10 million charitable contribution during the current quarter | |
•
| The efficiency ratio² was 60.8%, compared with 60.2% | |
Loans and Credit Quality |
•
| Loans and leases were $50.9 billion, down $2.6 billion, or 5%; excluding PPP, loans and leases were $49.0 billion, up $1.1 billion, or 2% |
•
| The provision for credit losses was a positive $25 million, compared with a negative $67 million | |
•
| The allowance for credit losses was 1.13% of loans (ex-PPP), compared with 1.74% of loans (ex-PPP) | |
•
|
Nonperforming assets3 were $269 million, or 0.6%, of loans (ex-PPP), compared with $371 million, or 0.8%, of loans (ex-PPP)
| |
Capital |
•
| The CET1 capital ratio was 10.2%, compared with 10.8% |
•
| Common stock repurchases during the quarter of $325 million, 5.0 million shares, or 3.2% of shares outstanding as of September 30, 2021 | |
Notable items |
•
|
Net gain related to SBIC investments of $19 million
|
•
| Gain on sale of bank-owned facilities of $12 million in advance of occupying our new technology campus in mid-2022 | |
•
| Deposits were $82.8 billion, up $13.1 billion, or 19%, resulting in a loan-to-deposit ratio of 61% | |
•
| During the quarter, $1.1 billion of PPP loans were forgiven by the SBA, which contributed $30 million of interest income through accelerated recognition of net unamortized deferred fees |
CEO COMMENTARY |
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "We were pleased with our fourth quarter results, which included $1.4 billion of non-PPP loan growth relative to the third quarter - an 11.7% annualized growth rate after a period of attrition in loan volumes in earlier months of the pandemic. Credit quality remained very strong, as demonstrated by a 0.01% annualized net charge-off rate, both for the fourth quarter and the full year. Customer-related noninterest income increased 9.4% over the prior year's fourth quarter.
"Finally, continued strong growth in average deposits, which increased 19.3% over the prior year quarter - with average noninterest-bearing demand deposits comprising 51% of total deposits versus 47% a year ago - allowed us to increase our securities portfolio by 43% from the year-ago period, while leaving considerable upside for margin expansion as interest rates rise."
|
OPERATING PERFORMANCE2
|
Net Interest Income and Margin
| ||||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||||
(In millions) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||||
Interest and fees on loans | $ | 471 | $ | 484 | $ | 499 | $ | (13) | (3) | % | $ | (28) | (6) | % |
Interest on money market investments | 7 | 7 | 3 | - | - | 4 | NM | |||||||
Interest on securities | 88 | 78 | 69 | 10 | 13 | 19 | 28 | |||||||
Total interest income
| 566 | 569 | 571 | (3) | (1) | (5) | (1) | |||||||
Interest on deposits | 7 | 7 | 13 | - | - | (6) | (46) | |||||||
Interest on short- and long-term borrowings | 6 | 7 | 8 | (1) | (14) | (2) | (25) | |||||||
Total interest expense
| 13 | 14 | 21 | (1) | (7) | (8) | (38) | |||||||
Net interest income
| $ | 553 | $ | 555 | $ | 550 | $ | (2) | - | $ | 3 | 1 | ||
bps | bps | |||||||||||||
Yield on interest-earning assets1
| 2.64 | % | 2.75 | % | 3.06 | % | (11) | (42) | ||||||
Rate paid on total deposits and interest-bearing liabilities1
| 0.06 | % | 0.07 | % | 0.12 | % | (1) | (6) | ||||||
Cost of total deposits1
| 0.03 | % | 0.03 | % | 0.08 | % | - | (5) | ||||||
Net interest margin1
| 2.58 | % | 2.68 | % | 2.95 | % | (10) | (37) |
Noninterest Income
| ||||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||||
(In millions) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||||
Commercial account fees | $ | 34 | $ | 34 | $ | 32 | $ | - | - | % | $ | 2 | 6 | % |
Card fees | 25 | 25 | 22 | - | - | 3 | 14 | |||||||
Retail and business banking fees | 19 | 20 | 18 | (1) | (5) | 1 | 6 | |||||||
Loan-related fees and income | 22 | 27 | 25 | (5) | (19) | (3) | (12) | |||||||
Capital markets and foreign exchange fees | 24 | 17 | 19 | 7 | 41 | 5 | 26 | |||||||
Wealth management fees | 13 | 13 | 10 | - | - | 3 | 30 | |||||||
Other customer-related fees | 15 | 15 | 13 | - | - | 2 | 15 | |||||||
Customer-related fees
| 152 | 151 | 139 | 1 | 1 | 13 | 9 | |||||||
Fair value and nonhedge derivative income (loss) | (1) | 2 | 8 | (3) | NM | (9) | NM | |||||||
Dividends and other income | 19 | 9 | 7 | 10 | NM | 12 | NM | |||||||
Securities gains (losses), net | 20 | (23) | 12 | 43 | NM | 8 | 67 | |||||||
Total noninterest income
| $ | 190 | $ | 139 | $ | 166 | $ | 51 | 37 | $ | 24 | 14 |
Noninterest Expense
| ||||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||||
(In millions) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||||
Salaries and employee benefits | $ | 282 | $ | 285 | $ | 277 | $ | (3) | (1) | % | $ | 5 | 2 | % |
Occupancy, net | 32 | 33 | 33 | (1) | (3) | (1) | (3) | |||||||
Furniture, equipment and software, net | 33 | 31 | 30 | 2 | 6 | 3 | 10 | |||||||
Other real estate expense, net | - | - | 1 | - | - | (1) | NM | |||||||
Credit-related expense | 7 | 7 | 6 | - | - | 1 | 17 | |||||||
Professional and legal services | 15 | 16 | 19 | (1) | (6) | (4) | (21) | |||||||
Advertising | 6 | 4 | 6 | 2 | 50 | - | - | |||||||
FDIC premiums | 7 | 5 | 6 | 2 | 40 | 1 | 17 | |||||||
Other | 67 | 48 | 46 | 19 | 40 | 21 | 46 | |||||||
Total noninterest expense
| $ | 449 | $ | 429 | $ | 424 | $ | 20 | 5 | $ | 25 | 6 | ||
Adjusted noninterest expense 1
| $ | 446 | $ | 432 | $ | 423 | $ | 14 | 3 | $ | 23 | 5 |
Loans and Leases | ||||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||||
(In millions) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||||
Loans held for sale | $ | 83 | $ | 67 | $ | 81 | $ | 16 | 24 | % | $ | 2 | 2 | % |
Loans and leases: | ||||||||||||||
Commercial - excluding PPP loans
| $ | 26,585 | $ | 25,369 | $ | 24,900 | $ | 1,216 | 5 | $ | 1,685 | 7 | ||
Commercial - PPP loans
| 1,855 | 3,080 | 5,572 | (1,225) | (40) | (3,717) | (67) | |||||||
Commercial real estate
| 12,198 | 12,153 | 12,104 | 45 | - | 94 | 1 | |||||||
Consumer
| 10,213 | 10,076 | 10,900 | 137 | 1 | (687) | (6) | |||||||
Loans and leases, net of unearned income and fees | 50,851 | 50,678 | 53,476 | 173 | - | (2,625) | (5) | |||||||
Less allowance for loan losses
| 513 | 491 | 777 | 22 | 4 | (264) | (34) | |||||||
Loans and leases held for investment, net of allowance
| $ | 50,338 | $ | 50,187 | $ | 52,699 | $ | 151 | - | $ | (2,361) | (4) | ||
Unfunded lending commitments and letters of credit | $ | 26,661 | $ | 26,138 | $ | 24,949 | $ | 523 | 2 | $ | 1,712 | 7 |
Credit Quality | ||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||
(In millions) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||
Provision for credit losses | $ | 25 | $ | (46) | $ | (67) | $ | 71 | NM | $ | 92 | NM |
Allowance for credit losses | 553 | 529 | 835 | 24 | 5 | % | (282) | (34) | % | |||
Net loan and lease charge-offs (recoveries) | 1 | (1) | 15 | 2 | NM | (14) | (93) | |||||
Nonperforming assets2
| 272 | 324 | 371 | (52) | (16) | (99) | (27) | |||||
Classified loans | 1,236 | 1,397 | 1,641 | (161) | (12) | (405) | (25) | |||||
4Q21 | 3Q21 | 4Q20 | bps | bps | ||||||||
Ratio of ACL to loans1 and leases outstanding, at period end
| 1.09 | % | 1.04 | % | 1.56 | % | 5 | (47) | ||||
Ratio of ACL to loans1 and leases outstanding (ex-PPP), at period end
| 1.13 | % | 1.11 | % | 1.74 | % | 2 | (61) | ||||
Annualized ratio of net loan and lease charge-offs to average loans | 0.01 | % | (0.01) | % | 0.11 | % | 2 | (10) | ||||
Ratio of classified loans to total loans and leases (ex-PPP) | 2.52 | % | 2.93 | % | 3.43 | % | (41) | (91) | ||||
Ratio of nonperforming assets1 and accruing loans 90 days or more past due to loans and leases and other real estate owned
| 0.55 | % | 0.64 | % | 0.71 | % | (9) | (16) |
Deposits and Borrowed Funds
| ||||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||||
(In millions) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||||
Noninterest-bearing demand | $ | 41,053 | $ | 39,150 | $ | 32,494 | $ | 1,903 | 5 | % | $ | 8,559 | 26 | % |
Interest-bearing: | ||||||||||||||
Savings and money market
| 40,114 | 37,046 | 34,571 | 3,068 | 8 | 5,543 | 16 | |||||||
Time
| 1,622 | 1,688 | 2,588 | (66) | (4) | (966) | (37) | |||||||
Total deposits | $ | 82,789 | $ | 77,884 | $ | 69,653 | $ | 4,905 | 6 | $ | 13,136 | 19 | ||
Borrowed funds: | ||||||||||||||
Federal funds purchased and other short-term borrowings | $ | 903 | $ | 579 | $ | 1,572 | $ | 324 | 56 | $ | (669) | (43) | ||
Long-term debt | 1,012 | 1,020 | 1,336 | (8) | (1) | (324) | (24) | |||||||
Total borrowed funds | $ | 1,915 | $ | 1,599 | $ | 2,908 | $ | 316 | 20 | $ | (993) | (34) |
Shareholders' Equity | ||||||||||||||
4Q21 - 3Q21 | 4Q21 - 4Q20 | |||||||||||||
(In millions, except share data) | 4Q21 | 3Q21 | 4Q20 | $ | % | $ | % | |||||||
Shareholders' equity: | ||||||||||||||
Preferred stock
| $ | 440 | $ | 440 | $ | 566 | $ | - | - | % | $ | (126) | (22) | % |
Common stock and additional paid-in capital
| 1,928 | 2,245 | 2,686 | (317) | (14) | (758) | (28) | |||||||
Retained earnings
| 5,175 | 5,025 | 4,309 | 150 | 3 | 866 | 20 | |||||||
Accumulated other comprehensive income (loss) | (80) | 64 | 325 | (144) | NM | (405) | NM | |||||||
Total shareholders' equity | $ | 7,463 | $ | 7,774 | $ | 7,886 | $ | (311) | (4) | $ | (423) | (5) | ||
Capital distributions: | ||||||||||||||
Common dividends paid | $ | 58 | $ | 62 | $ | 56 | $ | (4) | (6) | $ | 2 | 4 | ||
Bank common stock repurchased | 325 | 325 | - | - | - | 325 | NM | |||||||
Total capital distributed to common shareholders | $ | 383 | $ | 387 | $ | 56 | $ | (4) | (1) | $ | 327 | NM | ||
shares | % | shares | % | |||||||||||
Weighted average diluted common shares outstanding (in thousands)
| 153,635 | 160,480 | 163,900 | (6,845) | (4) | % | (10,265) | (6) | % | |||||
Common shares outstanding, at period end (in thousands) | 151,625 | 156,530 | 164,090 | (4,905) | (3) | (12,465) | (8) |
Three Months Ended | ||||||||||
(In millions, except share, per share, and ratio data) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
BALANCE SHEET1
| ||||||||||
Loans held for investment, net of allowance | $ | 50,338 | $ | 50,187 | $ | 50,863 | $ | 52,826 | $ | 52,699 |
Total assets | 93,200 | 88,306 | 87,208 | 85,121 | 81,479 | |||||
Deposits | 82,789 | 77,884 | 76,105 | 73,853 | 69,653 | |||||
Total shareholders' equity | 7,463 | 7,774 | 8,033 | 7,933 | 7,886 | |||||
STATEMENT OF INCOME | ||||||||||
Net earnings applicable to common shareholders
| $ | 207 | $ | 234 | $ | 345 | $ | 314 | $ | 275 |
Net interest income | 553 | 555 | 555 | 545 | 550 | |||||
Taxable-equivalent net interest income 2
| 563 | 562 | 562 | 553 | 557 | |||||
Total noninterest income | 190 | 139 | 205 | 169 | 166 | |||||
Total noninterest expense | 449 | 429 | 428 | 435 | 424 | |||||
Adjusted pre-provision net revenue 2
| 288 | 290 | 290 | 253 | 280 | |||||
Provision for credit losses | 25 | (46) | (123) | (132) | (67) | |||||
SHARE AND PER COMMON SHARE AMOUNTS | ||||||||||
Net earnings per diluted common share | $ | 1.34 | $ | 1.45 | $ | 2.08 | $ | 1.90 | $ | 1.66 |
Dividends | 0.38 | 0.38 | 0.34 | 0.34 | 0.34 | |||||
Book value per common share 1
| 46.32 | 46.85 | 46.80 | 44.98 | 44.61 | |||||
Tangible book value per common share 1, 2
| 39.62 | 40.37 | 40.54 | 38.77 | 38.42 | |||||
Weighted average share price | 63.69 | 54.78 | 55.86 | 51.34 | 36.86 | |||||
Weighted average diluted common shares outstanding (in thousands)
| 153,635 | 160,480 | 163,054 | 163,887 | 163,900 | |||||
Common shares outstanding (in thousands) 1
| 151,625 | 156,530 | 162,248 | 163,800 | 164,090 | |||||
SELECTED RATIOS AND OTHER DATA | ||||||||||
Return on average assets | 0.92 | % | 1.08 | % | 1.65 | % | 1.57 | % | 1.41 | % |
Return on average common equity | 11.5 | % | 12.3 | % | 18.6 | % | 17.4 | % | 15.3 | % |
Return on average tangible common equity 2
| 13.4 | % | 14.2 | % | 21.6 | % | 20.2 | % | 17.8 | % |
Net interest margin | 2.58 | % | 2.68 | % | 2.79 | % | 2.86 | % | 2.95 | % |
Cost of total deposits, annualized | 0.03 | % | 0.03 | % | 0.04 | % | 0.05 | % | 0.08 | % |
Efficiency ratio 2
| 60.8 | % | 59.8 | % | 59.1 | % | 63.5 | % | 60.2 | % |
Effective tax rate | 20.8 | % | 22.8 | % | 22.2 | % | 21.7 | % | 20.9 | % |
Ratio of nonperforming assets to loans and leases and other real estate owned
| 0.53 | % | 0.64 | % | 0.60 | % | 0.61 | % | 0.69 | % |
Annualized ratio of net loan and lease charge-offs to average loans | 0.01 | % | (0.01) | % | (0.02) | % | 0.06 | % | 0.11 | % |
Ratio of total allowance for credit losses to loans and leases outstanding 1
| 1.09 | % | 1.04 | % | 1.12 | % | 1.30 | % | 1.56 | % |
Full-time equivalent employees
| 9,685 | 9,641 | 9,727 | 9,682 | 9,678 | |||||
CAPITAL RATIOS AND DATA 1
| ||||||||||
Common equity tier 1 capital 3
| $ | 6,068 | $ | 6,236 | $ | 6,383 | $ | 6,206 | $ | 6,013 |
Risk-weighted assets 3
| 59,600 | 57,459 | 56,339 | 55,402 | 55,866 | |||||
Tangible common equity ratio | 6.5 | % | 7.2 | % | 7.6 | % | 7.6 | % | 7.8 | % |
Common equity tier 1 capital ratio 3
| 10.2 | % | 10.9 | % | 11.3 | % | 11.2 | % | 10.8 | % |
Tier 1 leverage ratio 3
| 7.2 | % | 7.6 | % | 8.0 | % | 8.3 | % | 8.3 | % |
Tier 1 risk-based capital ratio 3
| 10.9 | % | 11.6 | % | 12.1 | % | 12.2 | % | 11.8 | % |
Total risk-based capital ratio 3
| 12.8 | % | 13.6 | % | 14.2 | % | 14.5 | % | 14.1 | % |
(In millions, shares in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 595 | $ | 597 | $ | 525 | $ | 576 | $ | 543 |
Money market investments: | ||||||||||
Interest-bearing deposits | 10,283 | 9,442 | 10,086 | 8,427 | 1,074 | |||||
Federal funds sold and security resell agreements | 2,133 | 1,858 | 1,714 | 1,315 | 5,765 | |||||
Investment securities: | ||||||||||
Held-to-maturity1, at amortized cost
| 441 | 459 | 620 | 583 | 636 | |||||
Available-for-sale, at fair value | 24,048 | 20,461 | 18,170 | 16,644 | 15,731 | |||||
Trading account, at fair value | 372 | 305 | 181 | 189 | 266 | |||||
Total securities, net of allowance | 24,861 | 21,225 | 18,971 | 17,416 | 16,633 | |||||
Loans held for sale | 83 | 67 | 66 | 77 | 81 | |||||
Loans and leases, net of unearned income and fees | 50,851 | 50,678 | 51,398 | 53,472 | 53,476 | |||||
Less allowance for loan losses | 513 | 491 | 535 | 646 | 777 | |||||
Loans held for investment, net of allowance | 50,338 | 50,187 | 50,863 | 52,826 | 52,699 | |||||
Other noninterest-bearing investments | 851 | 868 | 895 | 815 | 817 | |||||
Premises, equipment and software, net | 1,319 | 1,282 | 1,239 | 1,236 | 1,209 | |||||
Goodwill and intangibles | 1,015 | 1,015 | 1,015 | 1,016 | 1,016 | |||||
Other real estate owned | 8 | 21 | 23 | 3 | 4 | |||||
Other assets | 1,714 | 1,744 | 1,811 | 1,414 | 1,638 | |||||
Total assets | $ | 93,200 | $ | 88,306 | $ | 87,208 | $ | 85,121 | $ | 81,479 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing demand | $ | 41,053 | $ | 39,150 | $ | 38,128 | $ | 35,882 | $ | 32,494 |
Interest-bearing: | ||||||||||
Savings and money market | 40,114 | 37,046 | 36,037 | 35,762 | 34,571 | |||||
Time | 1,622 | 1,688 | 1,940 | 2,209 | 2,588 | |||||
Total deposits | 82,789 | 77,884 | 76,105 | 73,853 | 69,653 | |||||
Federal funds purchased and other short-term borrowings
| 903 | 579 | 741 | 1,032 | 1,572 | |||||
Long-term debt | 1,012 | 1,020 | 1,308 | 1,299 | 1,336 | |||||
Reserve for unfunded lending commitments | 40 | 38 | 39 | 49 | 58 | |||||
Other liabilities | 993 | 1,011 | 982 | 955 | 974 | |||||
Total liabilities | 85,737 | 80,532 | 79,175 | 77,188 | 73,593 | |||||
Shareholders' equity: | ||||||||||
Preferred stock, without par value; authorized 4,400 shares | 440 | 440 | 440 | 566 | 566 | |||||
Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital
| 1,928 | 2,245 | 2,565 | 2,653 | 2,686 | |||||
Retained earnings | 5,175 | 5,025 | 4,853 | 4,566 | 4,309 | |||||
Accumulated other comprehensive income | (80) | 64 | 175 | 148 | 325 | |||||
Total shareholders' equity | 7,463 | 7,774 | 8,033 | 7,933 | 7,886 | |||||
Total liabilities and shareholders' equity | $ | 93,200 | $ | 88,306 | $ | 87,208 | $ | 85,121 | $ | 81,479 |
1 Held-to-maturity (fair value)
| $ | 443 | $ | 461 | $ | 622 | $ | 584 | $ | 640 |
2 Common shares (issued and outstanding)
| 151,625 | 156,530 | 162,248 | 163,800 | 164,090 |
(Unaudited) | Three Months Ended | |||||||||
(In millions, except share and per share amounts) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Interest income: | ||||||||||
Interest and fees on loans | $ | 471 | $ | 484 | $ | 492 | $ | 488 | $ | 499 |
Interest on money market investments | 7 | 7 | 4 | 3 | 3 | |||||
Interest on securities | 88 | 78 | 74 | 71 | 69 | |||||
Total interest income | 566 | 569 | 570 | 562 | 571 | |||||
Interest expense: | ||||||||||
Interest on deposits | 7 | 7 | 7 | 9 | 13 | |||||
Interest on short- and long-term borrowings | 6 | 7 | 8 | 8 | 8 | |||||
Total interest expense | 13 | 14 | 15 | 17 | 21 | |||||
Net interest income | 553 | 555 | 555 | 545 | 550 | |||||
Provision for credit losses: | ||||||||||
Provision for loan losses | 23 | (45) | (113) | (123) | (61) | |||||
Provision for unfunded lending commitments | 2 | (1) | (10) | (9) | (6) | |||||
Total provision for credit losses | 25 | (46) | (123) | (132) | (67) | |||||
Net interest income after provision for credit losses | 528 | 601 | 678 | 677 | 617 | |||||
Noninterest income: | ||||||||||
Commercial account fees | 34 | 34 | 34 | 32 | 32 | |||||
Card fees | 25 | 25 | 24 | 21 | 22 | |||||
Retail and business banking fees | 19 | 20 | 18 | 17 | 18 | |||||
Loan-related fees and income | 22 | 27 | 21 | 25 | 25 | |||||
Capital markets and foreign exchange fees | 24 | 17 | 17 | 15 | 19 | |||||
Wealth management fees | 13 | 13 | 12 | 12 | 10 | |||||
Other customer-related fees | 15 | 15 | 13 | 11 | 13 | |||||
Customer-related fees | 152 | 151 | 139 | 133 | 139 | |||||
Fair value and nonhedge derivative income (loss) | (1) | 2 | (5) | 18 | 8 | |||||
Dividends and other income | 19 | 9 | 8 | 7 | 7 | |||||
Securities gains (losses), net | 20 | (23) | 63 | 11 | 12 | |||||
Total noninterest income | 190 | 139 | 205 | 169 | 166 | |||||
Noninterest expense: | ||||||||||
Salaries and employee benefits | 282 | 285 | 272 | 288 | 277 | |||||
Occupancy, net | 32 | 33 | 33 | 33 | 33 | |||||
Furniture, equipment and software, net | 33 | 31 | 32 | 32 | 30 | |||||
Other real estate expense, net | - | - | - | - | 1 | |||||
Credit-related expense | 7 | 7 | 6 | 6 | 6 | |||||
Professional and legal services | 15 | 16 | 17 | 20 | 19 | |||||
Advertising | 6 | 4 | 4 | 5 | 6 | |||||
FDIC premiums | 7 | 5 | 6 | 7 | 6 | |||||
Other | 67 | 48 | 58 | 44 | 46 | |||||
Total noninterest expense | 449 | 429 | 428 | 435 | 424 | |||||
Income before income taxes | 269 | 311 | 455 | 411 | 359 | |||||
Income taxes | 56 | 71 | 101 | 89 | 75 | |||||
Net income | 213 | 240 | 354 | 322 | 284 | |||||
Preferred stock dividends | (6) | (6) | (9) | (8) | (9) | |||||
Net earnings applicable to common shareholders | $ | 207 | $ | 234 | $ | 345 | $ | 314 | $ | 275 |
Weighted average common shares outstanding during the period: | ||||||||||
Basic shares (in thousands) | 153,248 | 160,221 | 162,742 | 163,551 | 163,658 | |||||
Diluted shares (in thousands) | 153,635 | 160,480 | 163,054 | 163,887 | 163,900 | |||||
Net earnings per common share: | ||||||||||
Basic | $ | 1.34 | $ | 1.45 | $ | 2.08 | $ | 1.90 | $ | 1.66 |
Diluted | 1.34 | 1.45 | 2.08 | 1.90 | 1.66 |
Year Ended December 31, | ||||||
(In millions, except share and per share amounts) | 2021 | 2020 | 2019 | |||
(Unaudited) | ||||||
Interest income: | ||||||
Interest and fees on loans | $ | 1,935 | $ | 2,050 | $ | 2,289 |
Interest on money market investments | 21 | 14 | 32 | |||
Interest on securities | 311 | 304 | 362 | |||
Total interest income | 2,267 | 2,368 | 2,683 | |||
Interest expense: | ||||||
Interest on deposits | 30 | 105 | 254 | |||
Interest on short- and long-term borrowings | 29 | 47 | 157 | |||
Total interest expense | 59 | 152 | 411 | |||
Net interest income | 2,208 | 2,216 | 2,272 | |||
Provision for credit losses: | ||||||
Provision for loan losses | (258) | 385 | 37 | |||
Provision for unfunded lending commitments | (18) | 29 | 2 | |||
Total provision for credit losses | (276) | 414 | 39 | |||
Net interest income after provision for loan losses | 2,484 | 1,802 | 2,233 | |||
Noninterest income: | ||||||
Commercial account fees | 134 | 125 | 121 | |||
Card fees | 95 | 82 | 92 | |||
Retail and business banking fees | 74 | 68 | 78 | |||
Loan-related fees and income | 95 | 109 | 75 | |||
Capital markets and foreign exchange fees | 73 | 77 | 78 | |||
Wealth management fees | 50 | 44 | 40 | |||
Other customer-related fees | 54 | 44 | 41 | |||
Customer-related fees | 575 | 549 | 525 | |||
Fair value and nonhedge derivative income (loss) | 14 | (6) | (9) | |||
Dividends and other investment income | 43 | 24 | 43 | |||
Securities gains, net | 71 | 7 | 3 | |||
Total noninterest income | 703 | 574 | 562 | |||
Noninterest expense: | ||||||
Salaries and employee benefits | 1,127 | 1,087 | 1,141 | |||
Occupancy, net | 131 | 130 | 133 | |||
Furniture, equipment and software, net | 128 | 127 | 135 | |||
Other real estate expense, net | - | 1 | (3) | |||
Credit-related expense | 26 | 22 | 20 | |||
Professional and legal services | 68 | 52 | 47 | |||
Advertising | 19 | 19 | 19 | |||
FDIC premiums | 25 | 25 | 25 | |||
Other | 217 | 241 | 225 | |||
Total noninterest expense | 1,741 | 1,704 | 1,742 | |||
Income before income taxes | 1,446 | 672 | 1,053 | |||
Income taxes | 317 | 133 | 237 | |||
Net income | 1,129 | 539 | 816 | |||
Preferred stock dividends | (29) | (34) | (34) | |||
Net earnings applicable to common shareholders | $ | 1,100 | $ | 505 | $ | 782 |
Weighted average common shares outstanding during the year: | ||||||
Basic shares (in thousands) | 159,913 | 163,737 | 175,984 | |||
Diluted shares (in thousands) | 160,234 | 165,613 | 186,504 | |||
Net earnings per common share: | ||||||
Basic | $ | 6.80 | $ | 3.06 | $ | 4.41 |
Diluted | 6.79 | 3.02 | 4.16 |
(In millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Commercial: | ||||||||||
Commercial and industrial | $ | 13,867 | $ | 13,230 | $ | 12,947 | $ | 12,843 | $ | 13,444 |
PPP | 1,855 | 3,080 | 4,461 | 6,465 | 5,572 | |||||
Leasing | 327 | 293 | 307 | 310 | 320 | |||||
Owner occupied | 8,733 | 8,446 | 8,231 | 8,112 | 8,185 | |||||
Municipal | 3,658 | 3,400 | 3,215 | 3,234 | 2,951 | |||||
Total commercial | 28,440 | 28,449 | 29,161 | 30,964 | 30,472 | |||||
Commercial real estate: | ||||||||||
Construction and land development | 2,757 | 2,843 | 2,576 | 2,443 | 2,345 | |||||
Term | 9,441 | 9,310 | 9,532 | 9,617 | 9,759 | |||||
Total commercial real estate | 12,198 | 12,153 | 12,108 | 12,060 | 12,104 | |||||
Consumer: | ||||||||||
Home equity credit line | 3,016 | 2,834 | 2,727 | 2,695 | 2,745 | |||||
1-4 family residential | 6,050 | 6,140 | 6,269 | 6,630 | 6,969 | |||||
Construction and other consumer real estate | 638 | 584 | 593 | 589 | 630 | |||||
Bankcard and other revolving plans | 396 | 395 | 415 | 409 | 432 | |||||
Other | 113 | 123 | 125 | 125 | 124 | |||||
Total consumer | 10,213 | 10,076 | 10,129 | 10,448 | 10,900 | |||||
Loans and leases, net of unearned income and fees | $ | 50,851 | $ | 50,678 | $ | 51,398 | $ | 53,472 | $ | 53,476 |
(In millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Nonaccrual loans1
| $ | 271 | $ | 323 | $ | 307 | $ | 324 | $ | 367 |
Other real estate owned2
| 1 | 1 | 1 | 3 | 4 | |||||
Total nonperforming assets | $ | 272 | $ | 324 | $ | 308 | $ | 327 | $ | 371 |
Ratio of nonperforming assets to loans1 and leases and other real estate owned2
| 0.53 | % | 0.64 | % | 0.60 | % | 0.61 | % | 0.69 | % |
Accruing loans past due 90 days or more | $ | 8 | $ | 4 | $ | 6 | $ | 9 | $ | 12 |
Ratio of accruing loans past due 90 days or more to loans1 and leases
| 0.02 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.02 | % |
Nonaccrual loans and accruing loans past due 90 days or more
| $ | 279 | $ | 327 | $ | 313 | $ | 333 | $ | 379 |
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases
| 0.55 | % | 0.64 | % | 0.61 | % | 0.62 | % | 0.71 | % |
Accruing loans past due 30-89 days3
| $ | 70 | $ | 114 | $ | 29 | $ | 100 | $ | 112 |
Restructured loans included in nonaccrual loans | 105 | 121 | 128 | 134 | 113 | |||||
Restructured loans on accrual | 221 | 231 | 330 | 280 | 198 | |||||
Classified loans | 1,236 | 1,397 | 1,557 | 1,660 | 1,641 |
Three Months Ended | ||||||||||
(In millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Allowance for Loan Losses | ||||||||||
Balance at beginning of period | $ | 491 | $ | 535 | $ | 646 | $ | 777 | $ | 853 |
Provision for loan losses | 23 | (45) | (113) | (123) | (61) | |||||
Loan and lease charge-offs | 11 | 8 | 8 | 21 | 21 | |||||
Less: Recoveries | 10 | 9 | 10 | 13 | 6 | |||||
Net loan and lease charge-offs | 1 | (1) | (2) | 8 | 15 | |||||
Balance at end of period | $ | 513 | $ | 491 | $ | 535 | $ | 646 | $ | 777 |
Ratio of allowance for loan losses to loans1 and leases, at period end
| 1.01 | % | 0.97 | % | 1.04 | % | 1.21 | % | 1.45 | % |
Ratio of allowance for loan losses to nonaccrual loans1 at period end
| 189 | % | 152 | % | 175 | % | 199 | % | 212 | % |
Annualized ratio of net loan and lease charge-offs to average loans
| 0.01 | % | (0.01) | % | (0.02) | % | 0.06 | % | 0.11 | % |
Annualized ratio of net loan and lease charge-offs to average loans (excluding PPP loans) | 0.01 | % | (0.01) | % | (0.02) | % | 0.07 | % | 0.13 | % |
Reserve for Unfunded Lending Commitments | ||||||||||
Balance at beginning of period | $ | 38 | $ | 39 | $ | 49 | $ | 58 | $ | 64 |
Provision for unfunded lending commitments | 2 | (1) | (10) | (9) | (6) | |||||
Balance at end of period | $ | 40 | $ | 38 | $ | 39 | $ | 49 | $ | 58 |
Allowance for Credit Losses | ||||||||||
Allowance for loan losses | $ | 513 | $ | 491 | $ | 535 | $ | 646 | $ | 777 |
Reserve for unfunded lending commitments | 40 | 38 | 39 | 49 | 58 | |||||
Total allowance for credit losses | $ | 553 | $ | 529 | $ | 574 | $ | 695 | $ | 835 |
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end
| 1.09 | % | 1.04 | % | 1.12 | % | 1.30 | % | 1.56 | % |
Ratio of total allowance for credit losses to loans1 and leases outstanding (excluding PPP loans), at period end
| 1.13 | % | 1.11 | % | 1.22 | % | 1.48 | % | 1.74 | % |
(In millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Loans held for sale | $ | - | $ | - | $ | 1 | $ | - | $ | - |
Commercial: | ||||||||||
Commercial and industrial | $ | 124 | $ | 157 | $ | 111 | $ | 119 | $ | 140 |
PPP | 3 | - | 1 | - | - | |||||
Leasing | - | - | - | - | - | |||||
Owner occupied | 57 | 67 | 69 | 74 | 76 | |||||
Municipal | - | - | - | - | - | |||||
Total commercial | 184 | 224 | 181 | 193 | 216 | |||||
Commercial real estate: | ||||||||||
Construction and land development | - | - | - | - | - | |||||
Term | 20 | 25 | 28 | 31 | 31 | |||||
Total commercial real estate | 20 | 25 | 28 | 31 | 31 | |||||
Consumer: | ||||||||||
Home equity credit line | 14 | 15 | 18 | 19 | 16 | |||||
1-4 family residential | 52 | 58 | 78 | 80 | 103 | |||||
Construction and other consumer real estate | - | - | - | - | - | |||||
Bankcard and other revolving plans | 1 | 1 | 1 | 1 | 1 | |||||
Other | - | - | - | - | - | |||||
Total consumer | 67 | 74 | 97 | 100 | 120 | |||||
Total nonaccrual loans | $ | 271 | $ | 323 | $ | 307 | $ | 324 | $ | 367 |
(In millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Commercial: | ||||||||||
Commercial and industrial | $ | 3 | $ | (2) | $ | (2) | $ | 8 | $ | 15 |
PPP | - | - | - | - | - | |||||
Leasing | - | - | - | - | - | |||||
Owner occupied | - | (1) | - | - | - | |||||
Municipal | - | - | - | - | - | |||||
Total commercial | 3 | (3) | (2) | 8 | 15 | |||||
Commercial real estate: | ||||||||||
Construction and land development | (3) | - | - | - | - | |||||
Term | - | - | - | - | - | |||||
Total commercial real estate | (3) | - | - | - | - | |||||
Consumer: | ||||||||||
Home equity credit line | - | 1 | (1) | (1) | - | |||||
1-4 family residential | - | 1 | - | (1) | (1) | |||||
Construction and other consumer real estate | - | - | - | - | - | |||||
Bankcard and other revolving plans | - | - | 1 | 1 | - | |||||
Other | 1 | - | - | 1 | 1 | |||||
Total consumer loans | 1 | 2 | - | - | - | |||||
Total net charge-offs (recoveries) | $ | 1 | $ | (1) | $ | (2) | $ | 8 | $ | 15 |
(Unaudited) | Three Months Ended | |||||||||||
December 31, 2021 | September 30, 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 | $ | 11,155 | 0.15 | % | $ | 10,977 | 0.15 | % | $ | 906 | 0.26 | % |
Federal funds sold and security resell agreements | 2,189 | 0.49 | % | 1,739 | 0.50 | % | 4,544 | 0.20 | % | |||
Total money market investments | 13,344 | 0.21 | % | 12,716 | 0.20 | % | 5,450 | 0.21 | % | |||
Securities: | ||||||||||||
Held-to-maturity | 451 | 3.18 | % | 557 | 2.87 | % | 577 | 3.49 | % | |||
Available-for-sale | 21,661 | 1.52 | % | 18,814 | 1.56 | % | 14,926 | 1.70 | % | |||
Trading account | 342 | 4.76 | % | 199 | 4.41 | % | 198 | 4.55 | % | |||
Total securities | 22,454 | 1.61 | % | 19,570 | 1.63 | % | 15,701 | 1.81 | % | |||
Loans held for sale | 79 | 1.39 | % | 52 | 3.03 | % | 62 | 2.32 | % | |||
Loans and leases:2
| ||||||||||||
Commercial - excluding PPP loans | 25,899 | 3.75 | % | 24,854 | 3.76 | % | 24,583 | 3.91 | % | |||
Commercial - PPP loans | 2,439 | 7.16 | % | 3,795 | 6.66 | % | 6,310 | 3.50 | % | |||
Commercial real estate | 12,228 | 3.39 | % | 12,144 | 3.42 | % | 12,013 | 3.55 | % | |||
Consumer | 10,125 | 3.29 | % | 10,058 | 3.38 | % | 11,068 | 3.58 | % | |||
Total loans and leases | 50,691 | 3.73 | % | 50,851 | 3.82 | % | 53,974 | 3.71 | % | |||
Total interest-earning assets | 86,568 | 2.64 | % | 83,189 | 2.75 | % | 75,187 | 3.06 | % | |||
Cash and due from banks | 629 | 597 | 601 | |||||||||
Allowance for credit losses on loans and debt securities | (495) | (536) | (854) | |||||||||
Goodwill and intangibles | 1,015 | 1,015 | 1,016 | |||||||||
Other assets | 4,168 | 4,291 | 4,110 | |||||||||
Total assets | $ | 91,885 | $ | 88,556 | $ | 80,060 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Savings and money market | $ | 38,349 | 0.05 | % | $ | 37,262 | 0.05 | % | $ | 33,305 | 0.09 | % |
Time | 1,662 | 0.29 | % | 1,829 | 0.32 | % | 2,925 | 0.76 | % | |||
Total interest-bearing deposits | 40,011 | 0.06 | % | 39,091 | 0.07 | % | 36,230 | 0.14 | % | |||
Borrowed funds: | ||||||||||||
Federal funds purchased and other short-term borrowings
| 641 | 0.07 | % | 630 | 0.08 | % | 1,336 | 0.08 | % | |||
Long-term debt | 1,017 | 2.54 | % | 1,204 | 2.34 | % | 1,342 | 2.25 | % | |||
Total borrowed funds | 1,658 | 1.59 | % | 1,834 | 1.56 | % | 2,678 | 1.17 | % | |||
Total interest-bearing funds | 41,669 | 0.12 | % | 40,925 | 0.13 | % | 38,908 | 0.21 | % | |||
Noninterest-bearing demand deposits | 41,397 | 38,320 | 32,036 | |||||||||
Other liabilities | 1,233 | 1,302 | 1,384 | |||||||||
Total liabilities | 84,299 | 80,547 | 72,328 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred equity | 440 | 440 | 566 | |||||||||
Common equity | 7,146 | 7,569 | 7,166 | |||||||||
Total shareholders' equity | 7,586 | 8,009 | 7,732 | |||||||||
Total liabilities and shareholders' equity | $ | 91,885 | $ | 88,556 | $ | 80,060 | ||||||
Spread on average interest-bearing funds | 2.52 | % | 2.62 | % | 2.85 | % | ||||||
Impact of net noninterest-bearing sources of funds | 0.06 | % | 0.06 | % | 0.10 | % | ||||||
Net interest margin | 2.58 | % | 2.68 | % | 2.95 | % | ||||||
Memo: total loans and leases, excluding PPP loans | 48,252 | 3.56 | % | 47,056 | 3.59 | % | 47,664 | 3.74 | % | |||
Memo: total cost of deposits | 0.03 | % | 0.03 | % | 0.08 | % | ||||||
Memo: total deposits and interest-bearing liabilities | 83,066 | 0.06 | % | 79,245 | 0.07 | % | 70,944 | 0.12 | % |
(Unaudited) | Twelve Months Ended | |||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
(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 | $ | 8,917 | 0.14 | % | $ | 965 | 0.49 | % | $ | 717 | 2.23 | % |
Federal funds sold and security resell agreements | 2,129 | 0.40 | % | 2,089 | 0.44 | % | 629 | 2.61 | % | |||
Total money market investments | 11,046 | 0.19 | % | 3,054 | 0.46 | % | 1,346 | 2.41 | % | |||
Securities: | ||||||||||||
Held-to-maturity | 562 | 2.97 | % | 618 | 3.54 | % | 706 | 3.69 | % | |||
Available-for-sale | 18,365 | 1.59 | % | 14,208 | 2.00 | % | 14,389 | 2.36 | % | |||
Trading account | 246 | 4.43 | % | 167 | 4.36 | % | 147 | 4.45 | % | |||
Total securities | 19,173 | 1.67 | % | 14,993 | 2.09 | % | 15,242 | 2.45 | % | |||
Loans held for sale | 65 | 2.35 | % | 96 | 3.89 | % | 89 | 2.90 | % | |||
Loans and leases:2
| ||||||||||||
Commercial - excluding PPP loans | 25,014 | 3.80 | % | 25,193 | 4.11 | % | 24,990 | 4.86 | % | |||
Commercial - PPP loans | 4,566 | 5.16 | % | 4,534 | 3.22 | % | - | - | % | |||
Commercial real estate | 12,136 | 3.44 | % | 11,854 | 3.87 | % | 11,675 | 5.11 | % | |||
Consumer | 10,267 | 3.44 | % | 11,435 | 3.71 | % | 11,600 | 4.22 | % | |||
Total loans and leases | 51,983 | 3.76 | % | 53,016 | 3.89 | % | 48,265 | 4.77 | % | |||
Total interest-earning assets | 82,267 | 2.79 | % | 71,159 | 3.37 | % | 64,942 | 4.17 | % | |||
Cash and due from banks | 605 | 619 | 610 | |||||||||
Allowance for credit losses on loans and debt securities | (612) | (733) | (501) | |||||||||
Goodwill and intangibles | 1,015 | 1,015 | 1,014 | |||||||||
Other assets | 4,122 | 3,997 | 3,506 | |||||||||
Total assets | $ | 87,397 | $ | 76,057 | $ | 69,571 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Savings and money market | $ | 36,717 | 0.06 | % | $ | 31,100 | 0.19 | % | $ | 26,852 | 0.60 | % |
Time | 2,020 | 0.41 | % | 3,706 | 1.22 | % | 4,868 | 1.94 | % | |||
Total interest-bearing deposits | 38,737 | 0.08 | % | 34,806 | 0.30 | % | 31,720 | 0.80 | % | |||
Borrowed funds: | ||||||||||||
Federal funds purchased and other short-term borrowings | 802 | 0.07 | % | 1,888 | 0.52 | % | 4,719 | 2.36 | % | |||
Long-term debt | 1,211 | 2.36 | % | 1,544 | 2.45 | % | 1,236 | 3.69 | % | |||
Total borrowed funds | 2,013 | 1.45 | % | 3,432 | 1.39 | % | 5,955 | 2.64 | % | |||
Total interest-bearing funds | 40,750 | 0.14 | % | 38,238 | 0.40 | % | 37,675 | 1.09 | % | |||
Noninterest-bearing demand deposits | 37,520 | 28,883 | 23,361 | |||||||||
Other liabilities | 1,259 | 1,320 | 1,004 | |||||||||
Total liabilities | 79,529 | 68,441 | 62,040 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred equity | 497 | 566 | 566 | |||||||||
Common equity | 7,371 | 7,050 | 6,965 | |||||||||
Total shareholders' equity | 7,868 | 7,616 | 7,531 | |||||||||
Total liabilities and shareholders' equity | $ | 87,397 | $ | 76,057 | $ | 69,571 | ||||||
Spread on average interest-bearing funds | 2.65 | % | 2.97 | % | 3.08 | % | ||||||
Impact of net noninterest-bearing sources of funds | 0.07 | % | 0.18 | % | 0.46 | % | ||||||
Net interest margin | 2.72 | % | 3.15 | % | 3.54 | % | ||||||
Memo: total loans and leases, excluding PPP loans | 47,417 | 3.63 | % | 48,482 | 3.96 | % | 48,265 | 4.77 | % | |||
Memo: total cost of deposits | 0.04 | % | 0.17 | % | 0.46 | % | ||||||
Memo: total deposits and interest-bearing liabilities | 78,270 | 0.07 | % | 67,121 | 0.22 | % | 61,036 | 0.67 | % |
Three Months Ended | |||||||||||
(Dollar amounts in millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | ||||||
Return on Average Tangible Common Equity | |||||||||||
Net earnings applicable to common shareholders, net of tax | (a) | $ | 207 | $ | 234 | $ | 345 | $ | 314 | $ | 275 |
Average common equity (GAAP) | $ | 7,146 | $ | 7,569 | $ | 7,436 | $ | 7,333 | $ | 7,166 | |
Average goodwill and intangibles | (1,015) | (1,015) | (1,015) | (1,016) | (1,016) | ||||||
Average tangible common equity (non-GAAP) | (b) | $ | 6,131 | $ | 6,554 | $ | 6,421 | $ | 6,317 | $ | 6,150 |
Number of days in quarter | (c) | 92 | 92 | 91 | 90 | 92 | |||||
Number of days in year | (d) | 365 | 365 | 365 | 365 | 366 | |||||
Return on average tangible common equity (non-GAAP)
| (a/b/c)*d | 13.4 | % | 14.2 | % | 21.6 | % | 20.2 | % | 17.8 | % |
(In millions, except shares and per share amounts) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | ||||||
Tangible Book Value per Common Share | |||||||||||
Total shareholders' equity (GAAP) | $ | 7,463 | $ | 7,774 | $ | 8,033 | $ | 7,933 | $ | 7,886 | |
Preferred stock | (440) | (440) | (440) | (566) | (566) | ||||||
Goodwill and intangibles | (1,015) | (1,015) | (1,015) | (1,016) | (1,016) | ||||||
Tangible common equity (non-GAAP) | (a) | $ | 6,008 | $ | 6,319 | $ | 6,578 | $ | 6,351 | $ | 6,304 |
Common shares outstanding (in thousands) | (b) | 151,625 | 156,530 | 162,248 | 163,800 | 164,090 | |||||
Tangible book value per common share (non-GAAP)
| (a/b) | $ | 39.62 | $ | 40.37 | $ | 40.54 | $ | 38.77 | $ | 38.42 |
Three Months Ended | |||||||||||
(In millions) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | ||||||
Efficiency Ratio | |||||||||||
Noninterest expense (GAAP) | (a) | $ | 449 | $ | 429 | $ | 428 | $ | 435 | $ | 424 |
Adjustments: | |||||||||||
Severance costs | - | 1 | - | - | 1 | ||||||
Other real estate expense, net | - | - | - | - | 1 | ||||||
Amortization of core deposit and other intangibles | 1 | - | - | - | - | ||||||
Restructuring costs | - | - | - | - | (1) | ||||||
Pension termination-related expense | - | - | - | (5) | - | ||||||
SBIC investment success fee accrual 1
| 2 | (4) | 9 | - | - | ||||||
Total adjustments | (b) | 3 | (3) | 9 | (5) | 1 | |||||
Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 446 | $ | 432 | $ | 419 | $ | 440 | $ | 423 |
Net interest income (GAAP)
| (d) | $ | 553 | $ | 555 | $ | 555 | $ | 545 | $ | 550 |
Fully taxable-equivalent adjustments
| (e) | 10 | 7 | 7 | 8 | 7 | |||||
Taxable-equivalent net interest income (non-GAAP)
| (d+e)=(f) | 563 | 562 | 562 | 553 | 557 | |||||
Noninterest income (GAAP) | (g) | 190 | 139 | 205 | 169 | 166 | |||||
Combined income (non-GAAP) | (f+g)=(h) | 753 | 701 | 767 | 722 | 723 | |||||
Adjustments: | |||||||||||
Fair value and nonhedge derivative income (loss) | (1) | 2 | (5) | 18 | 8 | ||||||
Securities gains (losses), net | 20 | (23) | 63 | 11 | 12 | ||||||
Total adjustments | (i) | 19 | (21) | 58 | 29 | 20 | |||||
Adjusted taxable-equivalent revenue
(non-GAAP)
| (h-i)=(j) | $ | 734 | $ | 722 | $ | 709 | $ | 693 | $ | 703 |
Pre-provision net revenue (PPNR) (non-GAAP)
| (h)-(a) | $ | 304 | $ | 272 | $ | 339 | $ | 287 | $ | 299 |
Adjusted PPNR (non-GAAP)
| (j)-(c) | 288 | 290 | 290 | 253 | 280 | |||||
Efficiency ratio (non-GAAP) | (c/j) | 60.8 | % | 59.8 | % | 59.1 | % | 63.5 | % | 60.2 | % |
Twelve Months Ended | |||||
(In millions) |
December 31, 2021 |
December 31, 2020 | |||
Efficiency Ratio | |||||
Noninterest expense (GAAP) | (a) | $ | 1,741 | $ | 1,704 |
Adjustments: | |||||
Severance costs | 1 | 1 | |||
Other real estate expense | - | 1 | |||
Amortization of core deposit and other intangibles | 1 | - | |||
Restructuring costs | - | 1 | |||
Pension termination-related expense | (5) | 28 | |||
SBIC investment success fee accrual 1
| 7 | - | |||
Total adjustments | (b) | 4 | 31 | ||
Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 1,737 | $ | 1,673 |
Net interest income (GAAP) | (d) | $ | 2,208 | $ | 2,216 |
Fully taxable-equivalent adjustments | (e) | 32 | 28 | ||
Taxable-equivalent net interest income (non-GAAP) | (d+e)=(f) | 2,240 | 2,244 | ||
Noninterest income (GAAP) | (g) | 703 | 574 | ||
Combined income (non-GAAP) | (f+g)=(h) | 2,943 | 2,818 | ||
Adjustments: | |||||
Fair value and nonhedge derivative loss | 14 | (6) | |||
Securities gains, net | 71 | 7 | |||
Total adjustments | (i) | 85 | 1 | ||
Adjusted taxable-equivalent revenue (non-GAAP) | (h-i)=(j) | $ | 2,858 | $ | 2,817 |
Pre-provision net revenue (PPNR) | (h)-(a) | $ | 1,202 | $ | 1,114 |
Adjusted PPNR (non-GAAP) | (j)-(c) | 1,121 | 1,144 | ||
Efficiency ratio (non-GAAP) | (c/j) | 60.8 | % | 59.4 | % |
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Zions Bancorporation published this content on 24 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2022 21:13:06 UTC.