24. PARENT COMPANY FINANCIAL INFORMATION

CONDENSED BALANCE SHEETS


	December 31,
*(In thousands)*	2011			2010

ASSETS
Cash and due from banks	$	11		$	1,848
Interest-bearing deposits		956,476			547,665
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value $13,019 and $4,056)		20,118			3,593
Available-for-sale, at fair value		382,880			1,146,797
Loans, net of unearned fees of $0 and $0 and allowance for loan losses of $33 and $71		1,495			2,852
Other noninterest-bearing investments		52,903			55,560
Investments in subsidiaries:
Commercial banks and bank holding company		7,070,620			6,739,699
Other operating companies		45,043			70,272
Nonoperating – ZMFU II, Inc.¹		92,751			93,003
Receivables from subsidiaries:
Other		190			1,150
Other assets		285,971			253,773

	$	8,908,458		$	8,916,212

LIABILITIES AND SHAREHOLDERS' EQUITY
Other liabilities	$	104,829		$	182,094
Commercial paper:
Due to affiliates		45,995			45,991
Due to others		3,063			2,647
Other short-term borrowings:
Due to affiliates		5			72,204
Due to others		66,883			160,604
Subordinated debt to affiliated trusts		309,278			309,278
Long-term debt:
Due to affiliates		53			110,208
Due to others		1,393,044			1,384,907

Total liabilities		1,923,150			2,267,933

Shareholders' equity:
Preferred stock		2,377,560			2,056,672
Common stock		4,163,242			4,163,619
Retained earnings		1,036,590			889,284
Accumulated other comprehensive loss		(592,084	)		(461,296	)

Total shareholders' equity		6,985,308			6,648,279

	$	8,908,458		$	8,916,212

¹	ZMFU II, Inc. is a wholly-owned nonoperating subsidiary whose sole purpose is to hold a portfolio of municipal bonds, loans and leases.

CONDENSED STATEMENTS OF INCOME


*(In thousands)*	Year Ended December 31,
*(In thousands)*	2011			2010			2009

Interest income:
Commercial bank subsidiaries	$	2,519		$	5,665		$	18,939
Other subsidiaries and affiliates		63			69			326
Other loans and securities		13,640			14,450			15,735

Total interest income		16,222			20,184			35,000

Interest expense:
Affiliated trusts		24,027			24,032			24,094
Other borrowed funds		274,843			363,981			150,695

Total interest expense		298,870			388,013			174,789

Net interest loss		(282,648	)		(367,829	)		(139,789	)
Provision for loan losses		(38	)		(41	)		(531	)

Net interest loss after provision for loan losses		(282,610	)		(367,788	)		(139,258	)

Other income:
Dividends from consolidated subsidiaries:
Commercial banks and bank holding company		71,350			–			4,603
Other operating companies		14,151			450			425
Equity and fixed income securities gains (losses), net		426			386			(11,042	)
Net impairment losses on investment securities		(26,810	)		(70,306	)		(191,351	)
Gain on subordinated debt modification		–			–			508,945
Other income (loss)		4,203			(3,802	)		2,737

		63,320			(73,272	)		314,317

Expenses:
Salaries and employee benefits		19,033			14,720			21,663
Other operating expenses		4,176			11,465			2,882

		23,209			26,185			24,545

Income (loss) before income taxes and undistributed income (loss) of consolidated subsidiaries		(242,499	)		(467,245	)		150,514
Income taxes (benefit)		(104,395	)		(141,983	)		27,939

Income before equity in undistributed income (loss) of consolidated subsidiaries		(138,104	)		(325,262	)		122,575
Equity in undistributed income (loss) of consolidated subsidiaries:
Commercial banks and bank holding company		488,806			34,820			(1,325,678	)
Other operating companies		(27,687	)		(3,271	)		(21,995	)
Nonoperating – ZMFU II, Inc.		789			985			8,987

Net income (loss)		323,804			(292,728	)		(1,216,111	)
Preferred stock dividends		(170,414	)		(122,884	)		(102,969	)
Preferred stock redemption		–			3,107			84,633

Net earnings (loss) applicable to common shareholders	$	153,390		$	(412,505	)	$	(1,234,447	)

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
*(In thousands)*	2011			2010			2009

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	323,804		$	(292,728	)	$	(1,216,111	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Undistributed net losses (income) of consolidated subsidiaries		(461,908	)		(32,534	)		1,338,686
Unrealized equity securities losses, net		–			–			3,530
Net impairment losses on investment securities		26,810			70,306			191,351
Gain on subordinated debt modification		–			–			(508,945	)
Other, net		27,505			(2,699	)		171,172

Net cash used in operating activities		(83,789	)		(257,655	)		(20,317	)


CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in interest-bearing deposits		(408,811	)		(7,791	)		440,654
Collection of advances to subsidiaries		6,425			2,900			779,550
Advances to subsidiaries		(6,250	)		(2,000	)		(6,970	)
Proceeds from sales and maturities investment securities		1,259,262			23,218			9,895
Purchases of investment securities		(575,887	)		(807,441	)		(297,877	)
Decrease (increase) of investment in subsidiaries		113,834			(141,550	)		(1,509,150	)
Other, net		9,642			29,549			15,392

Net cash provided by (used in) investing activities		398,215			(903,115	)		(568,506	)


CASH FLOWS FROM FINANCING ACTIVITIES
Net change in short-term funds borrowed		(165,500	)		113,108			(138,659	)
Proceeds from issuance of long-term debt		101,821			255,845			703,932
Repayments of long-term debt		(117,975	)		(72,923	)		(295,630	)
Proceeds from issuance of preferred stock		–			138,657			–
Proceeds from issuance of common stock and warrants		25,686			838,488			464,110
Cash paid for preferred stock redemption		–			–			(47,166	)
Dividends paid on preferred stock		(148,774	)		(102,666	)		(84,408	)
Dividends paid on common stock		(7,361	)		(6,650	)		(11,863	)
Other, net		(4,160	)		(3,495	)		(1,374	)

Net cash provided by (used in) financing activities		(316,263	)		1,160,364			588,942

Net increase (decrease) in cash and due from banks		(1,837	)		(406	)		119
Cash and due from banks at beginning of year		1,848			2,254			2,135

Cash and due from banks at end of year	$	11		$	1,848		$	2,254

The Parent paid interest of $126.7 million in 2011, $147.2 million in 2010, and $122.8 million in 2009.