(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||
(Address of Principal Executive Offices) | (Zip Code) |
Former name or former address, if changed since last report |
Title of Each Class | Trading Symbols | Name of Each Exchange on Which Registered |
Depositary Shares each representing a 1/40th ownership interest in a share of: | ||
Exhibit Number | Description |
Press Release dated April 20, 2020 (furnished herewith). | |
Earnings Release Presentation dated April 20, 2020 (furnished herewith). | |
101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
104 | The cover page from this Current Report on form 8-K, formatted as Inline XBRL. |
ZIONS BANCORPORATION, NATIONAL ASSOCIATION | ||
By: | /s/ Paul E. Burdiss | |
Name: Paul E. Burdiss | ||
Title: Executive Vice President and Chief Financial Officer | ||
Date: April 20, 2020 |
Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 April 20, 2020 | ![]() |
www.zionsbancorporation.com |
Zions Bancorporation, N.A. Reports: 1Q20 Net Earnings¹ of $6 million, diluted EPS of $0.04 |
compared with 1Q19 Net Earnings¹ of $205 million, diluted EPS of $1.04, and 4Q19 Net Earnings¹ of $174 million, diluted EPS of $0.97 |
$0.04 | $6 million | 3.41% | 10.0% | |||
Net earnings1 per diluted common share | Net Earnings 1 | Net interest margin (“NIM”) | Common Equity Tier 1 |
FIRST QUARTER HIGHLIGHTS² | ||
Net Interest Income and NIM | • | Net interest income was $548 million, compared with $576 million |
• | NIM was 3.41%, compared with 3.68% | |
• | Total cost of deposits decreased 7 basis points, while total cost of deposits from the fourth quarter of 2019 decreased 8 basis points | |
• | Average total deposits increased to $56.9 billion, compared with $53.9 billion | |
Operating Performance | • | Pre-provision net revenue ("PPNR") was $281 million, down 1% |
• | Adjusted PPNR³ was $299 million, up 5% | |
• | Noninterest expense was $408 million, down 5% | |
• | Efficiency ratio³ was 57.7%, compared with 60.2% | |
Loans and Credit Quality | • | Net loans and leases were $49.9 billion, up $2.3 billion, or 5% |
• | Nonperforming assets were $280 million, up 17% | |
• | In the first quarter of 2020, we adopted CECL and recorded a provision for credit losses of $258 million, compared with $4 million, due to the anticipated economic downturn related to the effects of COVID-19 | |
• | Net charge-offs of 0.06% of average loans, compared with zero net charge-offs | |
Capital | • | The CET1 Capital ratio was 10.0%, compared with 11.3% |
Pandemic Relief | • | We remain active in reaching out to customers and have taken many measures to provide relief and support where reasonably possible. As of April 16, several thousand loans have been modified to provide forbearance, and we were able to facilitate the approval of more than 14,000 loans for nearly $4.4 billion to small businesses through the SBA’s Paycheck Protection Program. |
CEO COMMENTARY |
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, “In what has become a challenging environment, we are nevertheless pleased with many elements of the first quarter’s financial performance, including well-controlled operating expenses, which decreased 5% from last year; a net interest margin that remained relatively resilient when compared to the prior quarter; and very modest realized loan losses. As economic conditions deteriorated in mid-March as a result of the COVID-19 pandemic, we adapted rapidly. We materially strengthened our allowance for credit losses, established payment deferral arrangements for adversely affected clients and rapidly developed an automated capability to deliver government guaranteed Paycheck Protection Program loans to thousands of small businesses and non-profit organizations. Looking forward, we confront the uncertain current economic environment with a strong capital and reserve position, a robust liquidity profile and a loan portfolio that has been substantially “de-risked” in recent years, and that largely tends to have collateral as a secondary source of repayment - a characteristic that has historically resulted in lower loss rates per dollar of troubled loans.” |
OPERATING PERFORMANCE3 |
¹ Net Earnings is net earnings applicable to common shareholders. ² Comparisons noted in the bullet points are calculated for the current quarter versus the same prior-year period, unless otherwise specified. ³ For information on non-GAAP financial measures and the reasons for which the Bank presents these numbers, see pages 18-20. |
Net Interest Income and Margin | |||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | ||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | $ | % | $ | % | ||||||||||||||||||
Interest and fees on loans | $ | 532 | $ | 557 | $ | 570 | $ | (25 | ) | (4 | )% | $ | (38 | ) | (7 | )% | |||||||||
Interest on money market investments | 8 | 7 | 9 | 1 | 14 | (1 | ) | (11 | ) | ||||||||||||||||
Interest on securities | 82 | 83 | 96 | (1 | ) | (1 | ) | (14 | ) | (15 | ) | ||||||||||||||
Total interest income | 622 | 647 | 675 | (25 | ) | (4 | ) | (53 | ) | (8 | ) | ||||||||||||||
Interest on deposits | 51 | 62 | 57 | (11 | ) | (18 | ) | (6 | ) | (11 | ) | ||||||||||||||
Interest on short and long-term borrowings | 23 | 26 | 42 | (3 | ) | (12 | ) | (19 | ) | (45 | ) | ||||||||||||||
Total interest expense | 74 | 88 | 99 | (14 | ) | (16 | ) | (25 | ) | (25 | ) | ||||||||||||||
Net interest income | $ | 548 | $ | 559 | $ | 576 | $ | (11 | ) | (2 | ) | $ | (28 | ) | (5 | ) | |||||||||
bps | bps | ||||||||||||||||||||||||
Yield on interest-earning assets1 | 3.87 | % | 4.00 | % | 4.31 | % | (13 | ) | (44 | ) | |||||||||||||||
Rate paid on total deposits and interest-bearing liabilities1 | 0.48 | % | 0.57 | % | 0.67 | % | (9 | ) | (19 | ) | |||||||||||||||
Cost of total deposits1 | 0.36 | % | 0.44 | % | 0.43 | % | (8 | ) | (7 | ) | |||||||||||||||
Net interest margin1 | 3.41 | % | 3.46 | % | 3.68 | % | (5 | ) | (27 | ) |
Noninterest Income | |||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | ||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | $ | % | $ | % | ||||||||||||||||||
Commercial account fees | $ | 31 | $ | 31 | $ | 30 | $ | — | — | % | $ | 1 | 3 | % | |||||||||||
Card fees | 21 | 23 | 22 | (2 | ) | (9 | ) | (1 | ) | (5 | ) | ||||||||||||||
Retail and business banking fees | 19 | 20 | 18 | (1 | ) | (5 | ) | 1 | 6 | ||||||||||||||||
Loan-related fees and income | 26 | 19 | 16 | 7 | 37 | 10 | 63 | ||||||||||||||||||
Capital markets and foreign exchange fees | 24 | 19 | 17 | 5 | 26 | 7 | 41 | ||||||||||||||||||
Wealth management and trust fees | 16 | 16 | 14 | — | — | 2 | 14 | ||||||||||||||||||
Other customer-related fees | 6 | 6 | 5 | — | — | 1 | 20 | ||||||||||||||||||
Customer-related fees | 143 | 134 | 122 | 9 | 7 | 21 | 17 | ||||||||||||||||||
Dividends and other income | (3 | ) | 16 | 9 | (19 | ) | NM | (12 | ) | NM | |||||||||||||||
Securities gains (losses), net | (6 | ) | 2 | 1 | (8 | ) | NM | (7 | ) | NM | |||||||||||||||
Total noninterest income | $ | 134 | $ | 152 | $ | 132 | $ | (18 | ) | (12 | ) | $ | 2 | 2 |
Noninterest Expense | |||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | ||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | $ | % | $ | % | ||||||||||||||||||
Salaries and employee benefits | $ | 274 | $ | 305 | $ | 287 | $ | (31 | ) | (10 | )% | $ | (13 | ) | (5 | )% | |||||||||
Occupancy, net | 33 | 34 | 33 | (1 | ) | (3 | ) | — | — | ||||||||||||||||
Furniture, equipment and software, net | 32 | 34 | 32 | (2 | ) | (6 | ) | — | — | ||||||||||||||||
Other real estate expense, net | — | — | (1 | ) | — | NM | 1 | NM | |||||||||||||||||
Credit-related expense | 4 | 5 | 6 | (1 | ) | (20 | ) | (2 | ) | (33 | ) | ||||||||||||||
Professional and legal services | 12 | 13 | 11 | (1 | ) | (8 | ) | 1 | 9 | ||||||||||||||||
Advertising | 3 | 3 | 5 | — | — | (2 | ) | (40 | ) | ||||||||||||||||
FDIC premiums | 5 | 6 | 6 | (1 | ) | (17 | ) | (1 | ) | (17 | ) | ||||||||||||||
Other | 45 | 72 | 51 | (27 | ) | (38 | ) | (6 | ) | (12 | ) | ||||||||||||||
Total noninterest expense | $ | 408 | $ | 472 | $ | 430 | $ | (64 | ) | (14 | ) | $ | (22 | ) | (5 | ) | |||||||||
Adjusted noninterest expense 1 | $ | 407 | $ | 435 | $ | 431 | $ | (28 | ) | (6 | ) | $ | (24 | ) | (6 | ) |
1 | For information on non-GAAP financial measures, see pages 18-20. |
Asset Quality | |||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | ||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | bps | bps | ||||||||||||||||||||
Ratio of nonperforming assets to loans and leases and other real estate owned | 0.56 | % | 0.51 | % | 0.50 | % | 5 | 6 | |||||||||||||||||
Annualized ratio of net loan and lease charge-offs to average loans | 0.06 | % | 0.18 | % | — | % | (12 | ) | 6 | ||||||||||||||||
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end | 1.56 | % | 1.14 | % | 1.17 | % | 42 | 39 | |||||||||||||||||
$ | % | $ | % | ||||||||||||||||||||||
Classified loans | $ | 881 | $ | 803 | $ | 729 | $ | 78 | 10 | % | $ | 152 | 21 | % | |||||||||||
Nonperforming assets | 280 | 251 | 240 | 29 | 12 | 40 | 17 | ||||||||||||||||||
Net loan and lease charge-offs | 7 | 22 | — | (15 | ) | (68 | ) | 7 | NM | ||||||||||||||||
Provision for credit losses | 258 | 4 | 4 | 254 | NM | 254 | NM |
Loans and Leases | ||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | |||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | $ | % | $ | % | |||||||||||||||||
Loans held for sale | $ | 140 | $ | 129 | $ | 69 | $ | 11 | 9 | % | $ | 71 | NM | |||||||||||
Loans and leases: | ||||||||||||||||||||||||
Commercial | 26,392 | 25,388 | 24,598 | 1,004 | 4 | 1,794 | 7 | |||||||||||||||||
Commercial real estate | 11,741 | 11,555 | 11,530 | 186 | 2 | 211 | 2 | |||||||||||||||||
Consumer | 11,794 | 11,766 | 11,478 | 28 | — | 316 | 3 | |||||||||||||||||
Loans and leases, net of unearned income and fees | 49,927 | 48,709 | 47,606 | 1,218 | 3 | 2,321 | 5 | |||||||||||||||||
Less allowance for loan losses | 730 | 495 | 497 | 235 | 47 | 233 | 47 | |||||||||||||||||
Loans and leases held for investment, net of allowance | $ | 49,197 | $ | 48,214 | $ | 47,109 | $ | 983 | 2 | $ | 2,088 | 4 |
Oil and Gas-Related Exposure1 | |||||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 4Q18 | 4Q17 | 4Q16 | 4Q15 | 4Q14 | ||||||||||||||||||||
Loans and leases | |||||||||||||||||||||||||||
Upstream | $ | 1,025 | $ | 1,041 | $ | 898 | $ | 764 | $ | 771 | $ | 861 | $ | 1,107 | |||||||||||||
Midstream | 889 | 863 | 749 | 617 | 598 | 621 | 579 | ||||||||||||||||||||
Oil and gas services | 470 | 439 | 527 | 469 | 652 | 1,013 | 1,277 | ||||||||||||||||||||
Downstream | 195 | 158 | 110 | 123 | 137 | 127 | 110 | ||||||||||||||||||||
Total loan and lease balances | 2,579 | 2,501 | 2,284 | 1,973 | 2,158 | 2,622 | 3,073 | ||||||||||||||||||||
Unfunded lending commitments | 2,039 | 2,171 | 2,212 | 1,908 | 1,722 | 2,151 | 2,700 | ||||||||||||||||||||
Total oil and gas credit exposure | $ | 4,618 | $ | 4,672 | $ | 4,496 | $ | 3,881 | $ | 3,880 | $ | 4,773 | $ | 5,773 | |||||||||||||
Credit quality measures | |||||||||||||||||||||||||||
Classified loan ratio | 3.4 | % | 2.2 | % | 3.4 | % | 17.9 | % | 31.6 | % | 19.7 | % | 4.4 | % | |||||||||||||
Nonaccrual loan ratio | 0.7 | % | 0.7 | % | 1.4 | % | 7.7 | % | 13.6 | % | 2.5 | % | 0.6 | % | |||||||||||||
Ratio of nonaccrual loans that are current | 70.6 | % | 66.7 | % | 81.3 | % | 88.1 | % | 86.1 | % | 71.2 | % | 58.8 | % | |||||||||||||
Net charge-off ratio, annualized2 | 0.2 | % | 0.5 | % | (1.1 | )% | — | % | 3.0 | % | 3.7 | % | — | % |
Deposits and Borrowed Funds | |||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | ||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | $ | % | $ | % | ||||||||||||||||||
Noninterest-bearing demand | $ | 24,380 | $ | 23,576 | $ | 23,259 | $ | 804 | 3 | % | $ | 1,121 | 5 | % | |||||||||||
Interest-bearing: | |||||||||||||||||||||||||
Savings and money market | 28,901 | 28,790 | 26,348 | 111 | — | 2,553 | 10 | ||||||||||||||||||
Time | 4,237 | 4,719 | 4,928 | (482 | ) | (10 | ) | (691 | ) | (14 | ) | ||||||||||||||
Total deposits | $ | 57,518 | $ | 57,085 | $ | 54,535 | $ | 433 | 1 | $ | 2,983 | 5 | |||||||||||||
Borrowed funds: | |||||||||||||||||||||||||
Federal funds purchased and other short-term borrowings | $ | 3,765 | $ | 2,053 | $ | 4,944 | $ | 1,712 | 83 | $ | (1,179 | ) | (24 | ) | |||||||||||
Long-term debt | 1,795 | 1,723 | 1,228 | 72 | 4 | 567 | 46 | ||||||||||||||||||
Total borrowed funds | $ | 5,560 | $ | 3,776 | $ | 6,172 | $ | 1,784 | 47 | $ | (612 | ) | (10 | ) |
Shareholders’ Equity | |||||||||||||||||||||||||
1Q20 - 4Q19 | 1Q20 - 1Q19 | ||||||||||||||||||||||||
(In millions) | 1Q20 | 4Q19 | 1Q19 | $ | % | $ | % | ||||||||||||||||||
Shareholders’ equity: | |||||||||||||||||||||||||
Preferred stock | $ | 566 | $ | 566 | $ | 566 | $ | — | — | % | $ | — | — | % | |||||||||||
Common stock and additional paid-in capital | 2,668 | 2,735 | 3,541 | (67 | ) | (2 | ) | (873 | ) | (25 | ) | ||||||||||||||
Retained earnings | 3,979 | 4,009 | 3,603 | (30 | ) | (1 | ) | 376 | 10 | ||||||||||||||||
Accumulated other comprehensive income (loss) | 259 | 43 | (122 | ) | 216 | NM | 381 | NM | |||||||||||||||||
Total shareholders' equity | $ | 7,472 | $ | 7,353 | $ | 7,588 | $ | 119 | 2 | $ | (116 | ) | (2 | ) | |||||||||||
Capital distributions: | |||||||||||||||||||||||||
Common dividends paid | $ | 56 | $ | 57 | $ | 56 | $ | (1 | ) | (2 | ) | $ | — | — | |||||||||||
Bank common stock repurchased | 75 | 275 | 275 | (200 | ) | (73 | ) | (200 | ) | (73 | ) | ||||||||||||||
Total capital distributed to common shareholders | $ | 131 | $ | 332 | $ | 331 | $ | (201 | ) | (61 | ) | $ | (200 | ) | (60 | ) |
Three Months Ended | |||||||||||||||||||
(In millions, except share, per share, and ratio data) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
BALANCE SHEET 1 | |||||||||||||||||||
Loans held for investment, net of allowance | $ | 49,197 | $ | 48,214 | $ | 48,325 | $ | 48,114 | $ | 47,109 | |||||||||
Total assets | 71,467 | 69,172 | 70,361 | 70,065 | 69,195 | ||||||||||||||
Deposits | 57,518 | 57,085 | 56,139 | 54,332 | 54,535 | ||||||||||||||
Total shareholders’ equity | 7,472 | 7,353 | 7,509 | 7,599 | 7,588 | ||||||||||||||
STATEMENT OF INCOME | |||||||||||||||||||
Net earnings applicable to common shareholders | $ | 6 | $ | 174 | $ | 214 | $ | 189 | $ | 205 | |||||||||
Net interest income | 548 | 559 | 567 | 569 | 576 | ||||||||||||||
Taxable-equivalent net interest income 2 | 555 | 566 | 574 | 576 | 582 | ||||||||||||||
Total noninterest income | 134 | 152 | 146 | 132 | 132 | ||||||||||||||
Total noninterest expense | 408 | 472 | 415 | 424 | 430 | ||||||||||||||
Adjusted pre-provision net revenue 2 | 299 | 275 | 309 | 294 | 285 | ||||||||||||||
Provision for credit losses | 258 | 4 | 10 | 21 | 4 | ||||||||||||||
SHARE AND PER COMMON SHARE AMOUNTS | |||||||||||||||||||
Net earnings per diluted common share | $ | 0.04 | $ | 0.97 | $ | 1.17 | $ | 0.99 | $ | 1.04 | |||||||||
Dividends | 0.34 | 0.34 | 0.34 | 0.30 | 0.30 | ||||||||||||||
Book value per common share 1 | 42.15 | 41.12 | 40.75 | 39.75 | 38.47 | ||||||||||||||
Tangible book value per common share 1, 2 | 35.96 | 34.98 | 34.80 | 34.02 | 32.92 | ||||||||||||||
Weighted average share price | 41.02 | 48.39 | 43.04 | 46.11 | 47.71 | ||||||||||||||
Weighted average diluted common shares outstanding (in thousands) | 172,998 | 178,718 | 181,870 | 189,098 | 195,241 | ||||||||||||||
Common shares outstanding (in thousands) 1 | 163,852 | 165,057 | 170,373 | 176,935 | 182,513 | ||||||||||||||
SELECTED RATIOS AND OTHER DATA | |||||||||||||||||||
Return on average assets | 0.08 | % | 1.04 | % | 1.25 | % | 1.14 | % | 1.26 | % | |||||||||
Return on average common equity | 0.3 | % | 10.1 | % | 12.1 | % | 10.8 | % | 11.9 | % | |||||||||
Return on average tangible common equity 2 | 0.4 | % | 11.8 | % | 14.2 | % | 12.7 | % | 13.9 | % | |||||||||
Net interest margin | 3.41 | % | 3.46 | % | 3.48 | % | 3.54 | % | 3.68 | % | |||||||||
Cost of total deposits, annualized | 0.36 | % | 0.44 | % | 0.50 | % | 0.49 | % | 0.43 | % | |||||||||
Efficiency ratio 2 | 57.7 | % | 61.3 | % | 57.3 | % | 59.0 | % | 60.2 | % | |||||||||
Effective tax rate | 12.5 | % | 22.1 | % | 22.9 | % | 22.7 | % | 22.3 | % | |||||||||
Ratio of nonperforming assets to loans and leases and other real estate owned | 0.56 | % | 0.51 | % | 0.48 | % | 0.52 | % | 0.50 | % | |||||||||
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | 0.06 | % | 0.18 | % | 0.01 | % | 0.11 | % | — | % | |||||||||
Ratio of total allowance for credit losses to loans and leases outstanding 1 | 1.56 | % | 1.14 | % | 1.17 | % | 1.16 | % | 1.17 | % | |||||||||
Full-time equivalent employees | 9,879 | 10,188 | 10,255 | 10,326 | 10,204 | ||||||||||||||
CAPITAL RATIOS AND DATA 1 | |||||||||||||||||||
Common equity tier 1 capital | $ | 5,624 | $ | 5,719 | $ | 5,871 | $ | 5,987 | $ | 6,124 | |||||||||
Risk-weighted assets | 56,131 | 56,039 | 56,298 | 55,499 | 54,404 | ||||||||||||||
Tangible common equity ratio | 8.4 | % | 8.5 | % | 8.5 | % | 8.7 | % | 8.8 | % | |||||||||
Common equity tier 1 capital ratio | 10.0 | % | 10.2 | % | 10.4 | % | 10.8 | % | 11.3 | % | |||||||||
Tier 1 leverage ratio | 9.0 | % | 9.2 | % | 9.3 | % | 9.5 | % | 9.9 | % | |||||||||
Tier 1 risk-based capital ratio | 11.0 | % | 11.2 | % | 11.4 | % | 11.8 | % | 12.3 | % | |||||||||
Total risk-based capital ratio | 13.3 | % | 13.2 | % | 12.6 | % | 13.0 | % | 13.5 | % |
1 | At period end. |
2 | For information on non-GAAP financial measures, see pages 18-20. |
(In millions, shares in thousands) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 730 | $ | 705 | $ | 796 | $ | 538 | $ | 536 | |||||||||
Money market investments: | |||||||||||||||||||
Interest-bearing deposits | 1,225 | 743 | 1,149 | 634 | 702 | ||||||||||||||
Federal funds sold and security resell agreements | 550 | 484 | 504 | 620 | 438 | ||||||||||||||
Investment securities: | |||||||||||||||||||
Held-to-maturity1, at amortized cost | 585 | 592 | 658 | 695 | 764 | ||||||||||||||
Available-for-sale, at fair value | 14,231 | 13,725 | 14,033 | 14,672 | 14,904 | ||||||||||||||
Trading account, at fair value | 160 | 182 | 280 | 148 | 316 | ||||||||||||||
Less allowance for credit losses on debt securities | — | — | — | — | — | ||||||||||||||
Total securities, net of allowance | 14,976 | 14,499 | 14,971 | 15,515 | 15,984 | ||||||||||||||
Loans held for sale | 140 | 129 | 141 | 105 | 69 | ||||||||||||||
Loans and leases, net of unearned income and fees | 49,927 | 48,709 | 48,835 | 48,617 | 47,606 | ||||||||||||||
Less allowance for loan losses | 730 | 495 | 510 | 503 | 497 | ||||||||||||||
Loans held for investment, net of allowance | 49,197 | 48,214 | 48,325 | 48,114 | 47,109 | ||||||||||||||
Other noninterest-bearing investments | 916 | 898 | 982 | 1,056 | 993 | ||||||||||||||
Premises, equipment and software, net | 1,144 | 1,142 | 1,146 | 1,133 | 1,125 | ||||||||||||||
Goodwill and intangibles | 1,014 | 1,014 | 1,014 | 1,014 | 1,014 | ||||||||||||||
Other real estate owned | 6 | 8 | 4 | 5 | 6 | ||||||||||||||
Other assets | 1,569 | 1,336 | 1,329 | 1,331 | 1,219 | ||||||||||||||
Total assets | $ | 71,467 | $ | 69,172 | $ | 70,361 | $ | 70,065 | $ | 69,195 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 24,380 | $ | 23,576 | $ | 23,770 | $ | 22,947 | $ | 23,259 | |||||||||
Interest-bearing: | |||||||||||||||||||
Savings and money market | 28,901 | 28,790 | 27,427 | 26,470 | 26,348 | ||||||||||||||
Time | 4,237 | 4,719 | 4,942 | 4,915 | 4,928 | ||||||||||||||
Total deposits | 57,518 | 57,085 | 56,139 | 54,332 | 54,535 | ||||||||||||||
Federal funds purchased and other short-term borrowings | 3,765 | 2,053 | 4,579 | 6,023 | 4,944 | ||||||||||||||
Long-term debt | 1,795 | 1,723 | 1,242 | 1,236 | 1,228 | ||||||||||||||
Reserve for unfunded lending commitments | 47 | 59 | 62 | 60 | 59 | ||||||||||||||
Other liabilities | 870 | 899 | 830 | 815 | 841 | ||||||||||||||
Total liabilities | 63,995 | 61,819 | 62,852 | 62,466 | 61,607 | ||||||||||||||
Shareholders’ equity: | |||||||||||||||||||
Preferred stock, without par value; authorized 4,400 shares | 566 | 566 | 566 | 566 | 566 | ||||||||||||||
Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital | 2,668 | 2,735 | 3,002 | 3,271 | 3,541 | ||||||||||||||
Retained earnings | 3,979 | 4,009 | 3,892 | 3,737 | 3,603 | ||||||||||||||
Accumulated other comprehensive income (loss) | 259 | 43 | 49 | 25 | (122 | ) | |||||||||||||
Total shareholders’ equity | 7,472 | 7,353 | 7,509 | 7,599 | 7,588 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 71,467 | $ | 69,172 | $ | 70,361 | $ | 70,065 | $ | 69,195 | |||||||||
1 Held-to-maturity (approximate fair value) | $ | 587 | $ | 597 | $ | 662 | $ | 698 | $ | 762 | |||||||||
2 Common stock (issued and outstanding) | 163,852 | 165,057 | 170,373 | 176,935 | 182,513 |
Three Months Ended | |||||||||||||||||||
(In millions, except share and per share amounts) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Interest income: | |||||||||||||||||||
Interest and fees on loans | $ | 532 | $ | 557 | $ | 581 | $ | 581 | $ | 570 | |||||||||
Interest on money market investments | 8 | 7 | 8 | 8 | 9 | ||||||||||||||
Interest on securities | 82 | 83 | 88 | 95 | 96 | ||||||||||||||
Total interest income | 622 | 647 | 677 | 684 | 675 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Interest on deposits | 51 | 62 | 69 | 66 | 57 | ||||||||||||||
Interest on short- and long-term borrowings | 23 | 26 | 41 | 49 | 42 | ||||||||||||||
Total interest expense | 74 | 88 | 110 | 115 | 99 | ||||||||||||||
Net interest income | 548 | 559 | 567 | 569 | 576 | ||||||||||||||
Provision for credit losses: | |||||||||||||||||||
Provision for loan losses | 240 | 7 | 8 | 20 | 2 | ||||||||||||||
Provision for unfunded lending commitments | 18 | (3 | ) | 2 | 1 | 2 | |||||||||||||
Provision for credit losses on debt securities | — | — | — | — | — | ||||||||||||||
Total provision for credit losses | 258 | 4 | 10 | 21 | 4 | ||||||||||||||
Net interest income after provision for credit losses | 290 | 555 | 557 | 548 | 572 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Commercial account fees | 31 | 31 | 31 | 30 | 30 | ||||||||||||||
Card fees | 21 | 23 | 24 | 23 | 22 | ||||||||||||||
Retail and business banking fees | 19 | 20 | 20 | 20 | 18 | ||||||||||||||
Loan-related fees and income | 26 | 19 | 21 | 17 | 16 | ||||||||||||||
Capital markets and foreign exchange fees | 24 | 19 | 23 | 20 | 17 | ||||||||||||||
Wealth management and trust fees | 16 | 16 | 16 | 15 | 14 | ||||||||||||||
Other customer-related fees | 6 | 6 | 5 | 5 | 5 | ||||||||||||||
Customer-related fees | 143 | 134 | 140 | 130 | 122 | ||||||||||||||
Dividends and other income | (3 | ) | 16 | 4 | 5 | 9 | |||||||||||||
Securities gains (losses), net | (6 | ) | 2 | 2 | (3 | ) | 1 | ||||||||||||
Total noninterest income | 134 | 152 | 146 | 132 | 132 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries and employee benefits | 274 | 305 | 273 | 274 | 287 | ||||||||||||||
Occupancy, net | 33 | 34 | 34 | 32 | 33 | ||||||||||||||
Furniture, equipment and software, net | 32 | 34 | 34 | 35 | 32 | ||||||||||||||
Other real estate expense, net | — | — | (2 | ) | — | (1 | ) | ||||||||||||
Credit-related expense | 4 | 5 | 2 | 8 | 6 | ||||||||||||||
Professional and legal services | 12 | 13 | 10 | 13 | 11 | ||||||||||||||
Advertising | 3 | 3 | 6 | 5 | 5 | ||||||||||||||
FDIC premiums | 5 | 6 | 7 | 6 | 6 | ||||||||||||||
Other | 45 | 72 | 51 | 51 | 51 | ||||||||||||||
Total noninterest expense | 408 | 472 | 415 | 424 | 430 | ||||||||||||||
Income before income taxes | 16 | 235 | 288 | 256 | 274 | ||||||||||||||
Income taxes | 2 | 52 | 66 | 58 | 61 | ||||||||||||||
Net income | 14 | 183 | 222 | 198 | 213 | ||||||||||||||
Preferred stock dividends | (8 | ) | (9 | ) | (8 | ) | (9 | ) | (8 | ) | |||||||||
Net earnings applicable to common shareholders | $ | 6 | $ | 174 | $ | 214 | $ | 189 | $ | 205 | |||||||||
Weighted average common shares outstanding during the period: | |||||||||||||||||||
Basic shares (in thousands) | 164,143 | 167,078 | 173,160 | 179,156 | 184,767 | ||||||||||||||
Diluted shares (in thousands) | 172,998 | 178,718 | 181,870 | 189,098 | 195,241 | ||||||||||||||
Net earnings per common share: | |||||||||||||||||||
Basic | $ | 0.04 | $ | 1.03 | $ | 1.23 | $ | 1.05 | $ | 1.10 | |||||||||
Diluted | 0.04 | 0.97 | 1.17 | 0.99 | 1.04 |
(In millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Commercial: | |||||||||||||||||||
Commercial and industrial | $ | 15,533 | $ | 14,760 | $ | 14,846 | $ | 14,883 | $ | 14,758 | |||||||||
Leasing | 331 | 334 | 332 | 337 | 312 | ||||||||||||||
Owner occupied | 8,045 | 7,901 | 7,924 | 7,828 | 7,754 | ||||||||||||||
Municipal | 2,483 | 2,393 | 2,185 | 2,059 | 1,774 | ||||||||||||||
Total commercial | 26,392 | 25,388 | 25,287 | 25,107 | 24,598 | ||||||||||||||
Commercial real estate: | |||||||||||||||||||
Construction and land development | 2,257 | 2,211 | 2,347 | 2,609 | 2,343 | ||||||||||||||
Term | 9,484 | 9,344 | 9,469 | 9,218 | 9,187 | ||||||||||||||
Total commercial real estate | 11,741 | 11,555 | 11,816 | 11,827 | 11,530 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity credit line | 2,958 | 2,917 | 2,930 | 2,929 | 2,884 | ||||||||||||||
1-4 family residential | 7,567 | 7,568 | 7,506 | 7,440 | 7,294 | ||||||||||||||
Construction and other consumer real estate | 629 | 624 | 637 | 644 | 636 | ||||||||||||||
Bankcard and other revolving plans | 488 | 502 | 494 | 502 | 489 | ||||||||||||||
Other | 152 | 155 | 165 | 168 | 175 | ||||||||||||||
Total consumer | 11,794 | 11,766 | 11,732 | 11,683 | 11,478 | ||||||||||||||
Loans and leases, net of unearned income and fees | $ | 49,927 | $ | 48,709 | $ | 48,835 | $ | 48,617 | $ | 47,606 |
(In millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Nonaccrual loans1 | $ | 274 | $ | 243 | $ | 233 | $ | 248 | $ | 234 | |||||||||
Other real estate owned | 6 | 8 | 4 | 5 | 6 | ||||||||||||||
Total nonperforming assets | $ | 280 | $ | 251 | $ | 237 | $ | 253 | $ | 240 | |||||||||
Ratio of nonperforming assets to loans1 and leases and other real estate owned | 0.56 | % | 0.51 | % | 0.48 | % | 0.52 | % | 0.50 | % | |||||||||
Accruing loans past due 90 days or more | $ | 8 | $ | 10 | $ | 6 | $ | 17 | $ | 8 | |||||||||
Ratio of accruing loans past due 90 days or more to loans1 and leases | 0.02 | % | 0.02 | % | 0.01 | % | 0.03 | % | 0.02 | % | |||||||||
Nonaccrual loans and accruing loans past due 90 days or more | $ | 282 | $ | 253 | $ | 239 | $ | 265 | $ | 242 | |||||||||
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases | 0.56 | % | 0.52 | % | 0.49 | % | 0.54 | % | 0.51 | % | |||||||||
Accruing loans past due 30-89 days | $ | 135 | $ | 75 | $ | 84 | $ | 99 | $ | 142 | |||||||||
Restructured loans included in nonaccrual loans | 88 | 75 | 92 | 79 | 76 | ||||||||||||||
Restructured loans on accrual | 79 | 78 | 90 | 97 | 98 | ||||||||||||||
Classified loans | 881 | 803 | 799 | 770 | 729 |
Three Months Ended | |||||||||||||||||||
(In millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||
Balance at beginning of period1 | $ | 497 | $ | 510 | $ | 503 | $ | 497 | $ | 495 | |||||||||
Provision for loan losses | 240 | 7 | 8 | 20 | 2 | ||||||||||||||
Loan and lease charge-offs | 13 | 32 | 11 | 23 | 12 | ||||||||||||||
Less: Recoveries | 6 | 10 | 10 | 9 | 12 | ||||||||||||||
Net loan and lease charge-offs | 7 | 22 | 1 | 14 | — | ||||||||||||||
Balance at end of period | $ | 730 | $ | 495 | $ | 510 | $ | 503 | $ | 497 | |||||||||
Ratio of allowance for loan losses to loans2 and leases, at period end | 1.46 | % | 1.02 | % | 1.04 | % | 1.03 | % | 1.04 | % | |||||||||
Ratio of allowance for loan losses to nonaccrual loans2 at period end | 266 | % | 204 | % | 219 | % | 203 | % | 212 | % | |||||||||
Annualized ratio of net loan and lease charge-offs to average loans | 0.06 | % | 0.18 | % | 0.01 | % | 0.11 | % | — | % | |||||||||
Reserve for Unfunded Lending Commitments | |||||||||||||||||||
Balance at beginning of period1 | $ | 29 | $ | 62 | $ | 60 | $ | 59 | $ | 57 | |||||||||
Provision for unfunded lending commitments | 18 | (3 | ) | 2 | 1 | 2 | |||||||||||||
Balance at end of period | $ | 47 | $ | 59 | $ | 62 | $ | 60 | $ | 59 | |||||||||
Allowance for Credit Losses | |||||||||||||||||||
Allowance for loan losses | $ | 730 | $ | 495 | $ | 510 | $ | 503 | $ | 497 | |||||||||
Reserve for unfunded lending commitments | 47 | 59 | 62 | 60 | 59 | ||||||||||||||
Total allowance for credit losses | $ | 777 | $ | 554 | $ | 572 | $ | 563 | $ | 556 | |||||||||
Ratio of total allowance for credit losses to loans2 and leases outstanding, at period end | 1.56 | % | 1.14 | % | 1.17 | % | 1.16 | % | 1.17 | % |
(In millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Commercial: | |||||||||||||||||||
Commercial and industrial | $ | 135 | $ | 110 | $ | 97 | $ | 85 | $ | 72 | |||||||||
Leasing | 1 | — | 1 | 1 | 1 | ||||||||||||||
Owner occupied | 65 | 65 | 49 | 69 | 69 | ||||||||||||||
Municipal | — | — | — | 1 | 1 | ||||||||||||||
Total commercial | 201 | 175 | 147 | 156 | 143 | ||||||||||||||
Commercial real estate: | |||||||||||||||||||
Construction and land development | — | — | — | 1 | 1 | ||||||||||||||
Term | 15 | 16 | 29 | 31 | 32 | ||||||||||||||
Total commercial real estate | 15 | 16 | 29 | 32 | 33 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity credit line | 14 | 12 | 12 | 12 | 11 | ||||||||||||||
1-4 family residential | 43 | 40 | 44 | 44 | 45 | ||||||||||||||
Construction and other consumer real estate | — | — | 1 | 4 | 2 | ||||||||||||||
Bankcard and other revolving plans | 1 | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Total consumer | 58 | 52 | 57 | 60 | 58 | ||||||||||||||
Total nonaccrual loans | $ | 274 | $ | 243 | $ | 233 | $ | 248 | $ | 234 |
(In millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Commercial: | |||||||||||||||||||
Commercial and industrial | $ | 7 | $ | 19 | $ | — | $ | 13 | $ | 1 | |||||||||
Leasing | — | — | — | — | — | ||||||||||||||
Owner occupied | (1 | ) | (1 | ) | (1 | ) | — | 1 | |||||||||||
Municipal | — | — | — | — | — | ||||||||||||||
Total commercial | 6 | 18 | (1 | ) | 13 | 2 | |||||||||||||
Commercial real estate: | |||||||||||||||||||
Construction and land development | — | (1 | ) | — | — | — | |||||||||||||
Term | — | 2 | (1 | ) | — | (2 | ) | ||||||||||||
Total commercial real estate | — | 1 | (1 | ) | — | (2 | ) | ||||||||||||
Consumer: | |||||||||||||||||||
Home equity credit line | — | 1 | — | — | (1 | ) | |||||||||||||
1-4 family residential | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||
Construction and other consumer real estate | — | — | — | — | — | ||||||||||||||
Bankcard and other revolving plans | 1 | 2 | 3 | 1 | 1 | ||||||||||||||
Other | 1 | 1 | 1 | 1 | 1 | ||||||||||||||
Total consumer loans | 1 | 3 | 3 | 1 | — | ||||||||||||||
Total net charge-offs (recoveries) | $ | 7 | $ | 22 | $ | 1 | $ | 14 | $ | — |
Three Months Ended | ||||||||||||||||||||
March 31, 2020 | December 31, 2019 | March 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 | $ | 2,013 | 1.52 | % | $ | 1,440 | 1.92 | % | $ | 1,268 | 2.73 | % | ||||||||
Securities: | ||||||||||||||||||||
Held-to-maturity | 593 | 3.72 | % | 617 | 3.68 | % | 829 | 3.72 | % | |||||||||||
Available-for-sale | 13,687 | 2.26 | % | 13,771 | 2.25 | % | 14,724 | 2.49 | % | |||||||||||
Trading account | 164 | 4.27 | % | 173 | 4.36 | % | 107 | 4.52 | % | |||||||||||
Total securities | 14,444 | 2.34 | % | 14,561 | 2.33 | % | 15,660 | 2.57 | % | |||||||||||
Loans held for sale | 109 | 3.14 | % | 134 | 3.32 | % | 63 | 1.70 | % | |||||||||||
Loans held for investment:2 | ||||||||||||||||||||
Commercial | 25,514 | 4.53 | % | 25,258 | 4.65 | % | 24,427 | 5.05 | % | |||||||||||
Commercial real estate | 11,546 | 4.62 | % | 11,735 | 4.84 | % | 11,335 | 5.31 | % | |||||||||||
Consumer | 11,737 | 3.99 | % | 11,720 | 4.10 | % | 11,409 | 4.30 | % | |||||||||||
Total loans held for investment | 48,797 | 4.42 | % | 48,713 | 4.56 | % | 47,171 | 4.93 | % | |||||||||||
Total interest-earning assets | 65,363 | 3.87 | % | 64,848 | 4.00 | % | 64,162 | 4.31 | % | |||||||||||
Cash and due from banks | 676 | 675 | 554 | |||||||||||||||||
Allowance for credit losses on loans and debt securities | (499 | ) | (507 | ) | (499 | ) | ||||||||||||||
Goodwill and intangibles | 1,014 | 1,014 | 1,014 | |||||||||||||||||
Other assets | 3,651 | 3,545 | 3,353 | |||||||||||||||||
Total assets | $ | 70,205 | $ | 69,575 | $ | 68,584 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Savings and money market | $ | 28,856 | 0.47 | % | $ | 28,138 | 0.56 | % | $ | 26,021 | 0.54 | % | ||||||||
Time | 4,454 | 1.61 | % | 4,808 | 1.84 | % | 4,674 | 1.90 | % | |||||||||||
Total interest-bearing deposits | 33,310 | 0.62 | % | 32,946 | 0.75 | % | 30,695 | 0.75 | % | |||||||||||
Borrowed funds: | ||||||||||||||||||||
Federal funds purchased and other short-term borrowings | 2,922 | 1.19 | % | 2,719 | 1.75 | % | 5,289 | 2.57 | % | |||||||||||
Long-term debt | 1,747 | 3.21 | % | 1,587 | 3.41 | % | 880 | 4.08 | % | |||||||||||
Total borrowed funds | 4,669 | 1.95 | % | 4,306 | 2.36 | % | 6,169 | 2.78 | % | |||||||||||
Total interest-bearing funds | 37,979 | 0.78 | % | 37,252 | 0.94 | % | 36,864 | 1.09 | % | |||||||||||
Noninterest-bearing deposits | 23,599 | 23,795 | 23,221 | |||||||||||||||||
Other liabilities | 1,137 | 1,096 | 928 | |||||||||||||||||
Total liabilities | 62,715 | 62,143 | 61,013 | |||||||||||||||||
Shareholders’ equity: | ||||||||||||||||||||
Preferred equity | 566 | 566 | 566 | |||||||||||||||||
Common equity | 6,924 | 6,866 | 7,005 | |||||||||||||||||
Total shareholders’ equity | 7,490 | 7,432 | 7,571 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 70,205 | $ | 69,575 | $ | 68,584 | ||||||||||||||
Spread on average interest-bearing funds | 3.09 | % | 3.06 | % | 3.22 | % | ||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.32 | % | 0.40 | % | 0.46 | % | ||||||||||||||
Net interest margin | 3.41 | % | 3.46 | % | 3.68 | % | ||||||||||||||
Memo: total cost of deposits | 0.36 | % | 0.44 | % | 0.43 | % | ||||||||||||||
Memo: total deposits and interest-bearing liabilities | 61,578 | 0.48 | % | 61,047 | 0.57 | % | 60,085 | 0.67 | % |
(In millions, except shares and per share amounts) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Tangible Book Value per Common Share | ||||||||||||||||||||
Total shareholders’ equity (GAAP) | $ | 7,472 | $ | 7,353 | $ | 7,509 | $ | 7,599 | $ | 7,588 | ||||||||||
Preferred stock | (566 | ) | (566 | ) | (566 | ) | (566 | ) | (566 | ) | ||||||||||
Goodwill and intangibles | (1,014 | ) | (1,014 | ) | (1,014 | ) | (1,014 | ) | (1,014 | ) | ||||||||||
Tangible common equity (non-GAAP) | (a) | $ | 5,892 | $ | 5,773 | $ | 5,929 | $ | 6,019 | $ | 6,008 | |||||||||
Common shares outstanding (in thousands) | (b) | 163,852 | 165,057 | 170,373 | 176,935 | 182,513 | ||||||||||||||
Tangible book value per common share (non-GAAP) | (a/b) | $ | 35.96 | $ | 34.98 | $ | 34.80 | $ | 34.02 | $ | 32.92 |
Three Months Ended | ||||||||||||||||||||
(Dollar amounts in millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Return on Average Tangible Common Equity | ||||||||||||||||||||
Net earnings applicable to common shareholders (GAAP) | $ | 6 | $ | 174 | $ | 214 | $ | 189 | $ | 205 | ||||||||||
Adjustments, net of tax: | ||||||||||||||||||||
Amortization of core deposit and other intangibles | — | — | — | — | — | |||||||||||||||
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) | (a) | $ | 6 | $ | 174 | $ | 214 | $ | 189 | $ | 205 | |||||||||
Average common equity (GAAP) | $ | 6,924 | $ | 6,866 | $ | 7,002 | $ | 6,988 | $ | 7,005 | ||||||||||
Average goodwill and intangibles | (1,014 | ) | (1,014 | ) | (1,014 | ) | (1,014 | ) | (1,014 | ) | ||||||||||
Average tangible common equity (non-GAAP) | (b) | $ | 5,910 | $ | 5,852 | $ | 5,988 | $ | 5,974 | $ | 5,991 | |||||||||
Number of days in quarter | (c) | 91 | 92 | 92 | 91 | 90 | ||||||||||||||
Number of days in year | (d) | 366 | 365 | 365 | 365 | 365 | ||||||||||||||
Return on average tangible common equity (non-GAAP) | (a/b/c)*d | 0.4 | % | 11.8 | % | 14.2 | % | 12.7 | % | 13.9 | % |
Three Months Ended | ||||||||||||||||||||
(In millions) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Efficiency Ratio | ||||||||||||||||||||
Noninterest expense (GAAP) | (a) | $ | 408 | $ | 472 | $ | 415 | $ | 424 | $ | 430 | |||||||||
Adjustments: | ||||||||||||||||||||
Severance costs | — | 22 | 2 | 1 | — | |||||||||||||||
Other real estate expense, net | — | — | (2 | ) | — | (1 | ) | |||||||||||||
Restructuring costs | 1 | 15 | — | — | — | |||||||||||||||
Pension termination-related expense | — | — | — | — | — | |||||||||||||||
Total adjustments | (b) | 1 | 37 | — | 1 | (1 | ) | |||||||||||||
Adjusted noninterest expense (non-GAAP) | (a-b)=(c) | $ | 407 | $ | 435 | $ | 415 | $ | 423 | $ | 431 | |||||||||
Net interest income (GAAP) | (d) | $ | 548 | $ | 559 | $ | 567 | $ | 569 | $ | 576 | |||||||||
Fully taxable-equivalent adjustments | (e) | 7 | 7 | 7 | 7 | 6 | ||||||||||||||
Taxable-equivalent net interest income (non-GAAP) | (d+e)=(f) | 555 | 566 | 574 | 576 | 582 | ||||||||||||||
Noninterest income (GAAP) | (g) | 134 | 152 | 146 | 132 | 132 | ||||||||||||||
Combined income (non-GAAP) | (f+g)=(h) | 689 | 718 | 720 | 708 | 714 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Fair value and nonhedge derivative loss | (11 | ) | 6 | (6 | ) | (6 | ) | (3 | ) | |||||||||||
Securities gains (losses), net | (6 | ) | 2 | 2 | (3 | ) | 1 | |||||||||||||
Total adjustments | (i) | (17 | ) | 8 | (4 | ) | (9 | ) | (2 | ) | ||||||||||
Adjusted taxable-equivalent revenue (non-GAAP) | (h-i)=(j) | $ | 706 | $ | 710 | $ | 724 | $ | 717 | $ | 716 | |||||||||
Pre-provision net revenue (PPNR) (non-GAAP) | (h)-(a) | $ | 281 | $ | 246 | $ | 305 | $ | 284 | $ | 284 | |||||||||
Adjusted PPNR (non-GAAP) | (j-c)=(k) | 299 | 275 | 309 | 294 | 285 | ||||||||||||||
Efficiency ratio (non-GAAP) | (c/j) | 57.7 | % | 61.3 | % | 57.3 | % | 59.0 | % | 60.2 | % |
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