Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — IPO Roadshow (September 2009)
21 slides from Zions Bancorporation N.a's IPO roadshow presentation, Sep 17, 2009
Slide 1: Free Writing Prospectus, September 2009
September 2009 Filed Pursuant to Rule 433 Registration Statement No. 333-158319 September 17, 2009 Free Writing Prospectus (To the Prospectus dated March 31, 2009)
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that relate to the projected performance of Zions Bancorporation and elements of or affecting such performance, including statements with respect to the beliefs, plans, objectives, goals, guidelines, expectations, anticipations and est
Slide 3: A Collection of Great Banks
A Collection of Great Banks Bank Headquarters Offices Assets Deposits Zions Bank Salt Lake City 128 $20.8B $16.2B CB&T San Diego 93 $10.7B $8.5B Amegy Houston 84 $11.7B $9.1B NBA Phoenix 76 $4.9B $4.0B NSB Las Vegas 59 $4.3B $3.7B Vectra Denver 39 $2.5B $2.0B Commerce-WA Seattle 1 $0.8B $0.6B Commer
Slide 4: Zions' Strengths
Zions’ Strengths • Annual pretax, pre-provision earnings of ~$950 mm-to- $1billion – NIM: 4.09%, ranked #2 of regional banks/peers. – One quarter of deposits are non-interest bearing (rank: #3 of peers) • Strong allowance for credit loss: 3.2% of loans • Tier 1 Common / Risk-weighted assets: $1.1 bi
Slide 5: Zions' Challenges
Zions’ Challenges • Rising NPAs, to 4.7% of loans from 4.0% in prior quarter – Total delinquent + NPA was up 4%, decelerating sharply from the prior quarter rate • YTD net charge-off rate of 2.4% • Continued securities impairments (OTTI), primarily on bank/insurance CDOs - $42.0 million in 2Q
Slide 6: Our Growth Engine
Our Growth Engine #1 Ranking Among Regional & Western Banks Source: SNL Financial 7.6% 7.5% 7.2% 6.3% 6.1% 5.6% 5.1% 5.0% 4.3% 4.1% 3.3% 2.9% 2.8% 2.7% 2.6% 2.0% 1.5% 0.8% 9.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Footprint Population Growth Estimates from SNL Financial (2009-2014
Slide 7: Net Interest Margin (Regional Bank Peers)
Net Interest Margin (Regional Bank Peers) Reported NIM 2Q09 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 1Q09 to 2Q09 NIM Change (in bps) -25 -20 -15 -10 -5 0 5 10 15 20 25 30 Source: SNL Source: SNL Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200 billion plu
Slide 8: Asset Sensitivity
Asset Sensitivity • Fixed-rate loans: – 25% of portfolio – Duration of about 1.1 years • Variable-rate loans: – 75% of portfolio – Continual reduction of interest rate swaps (increasing asset sensitivity) • 22% of total loans have floors that are in-the-money • Non-interest bearing deposits to earni
Slide 9: Loan Portfolio Composition (6/30/2009)
Loan Portfolio Composition (6/30/2009) 48% 33% 19% Owner Occupied Commercial 21% CRE Term 16% Other Consumer 8% Other 2% C& I 28% Consumer 1-4 Family 9% Residential Construction 7% Comm Construction 11%
Slide 10: CRE Portfolio Change Summary
CRE Portfolio Change Summary (Dollar Change from 4Q07 to 2Q09 in billions) $1.3 -$1.0 -$3.0 -$3.5 -$3.0 -$2.5 -$2.0 -$1.5 -$1.0 -$0.5 $0.0 $0.5 $1.0 $1.5 $2.0 Commercial Term Commercial Construction Residential Construction
Slide 11: Loan Portfolio Performance by Bank
Loan Portfolio Performance (6/30/2009) YTD Net Charge-offs By Bank Vectra Bank Colorado 2% Zions First National Bank 28% Amegy Bank Of Texas 8% California Bank & Trust 11% National Bank of Arizona 20% Nevada State Bank 31% Total Loans by Bank California Bank & Trust, 21% National Bank of Arizona, 9%
Slide 12: Loan Portfolio Performance by Loan Category
Loan Portfolio Performance (6/30/2009) YTD Net Charge-offs By Loan Category Commercial 29.6% Commercial Real Estate 55.4% Consumer 14.5% Other 0.4%
Slide 13: NPAs as a % of Total Assets (Large Bank Peers)
NPAs as a % of Total Assets (Large Bank Peers) Zions, 3.64% Peer (weighted average), 2.00% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Zions Peer (weighted average) Zions NPA/Asset ratio excludes FDIC-supported assets Note: Peer group defined as U.S. bank holding companies with assets > $1
Slide 14: Delinquency Trends (Large Bank Peers)
Note: Peer group defined as U.S. bank holding companies with assets > $10 billion. Peer data source: SNL Note: Zions’ ratio excludes FDIC-supported assets Delinquency Trends (Large Bank Peers) (90+ days Deliquent Still Accruing) / (Total Loans) ZION, 0.47% Peer (Weighted Avg), 1.90% 0.00% 0.20% 0.40
Slide 15: NPAs & Delinquency Trends (Large Bank Peers)
NPAs & Delinquency Trends (Large Bank Peers) Note: Peer group defined as U.S. bank holding companies with assets > $10 billion. Peer data source: SNL Note: Zions’ ratio excludes FDIC-supported assets (NPAs + Greater Than 90 days Deliquent) / (Loans + OREO) Zions, 5.12% Peer (Weighted Avg), 6.25% 0.0
Slide 16: Net Charge-offs as % of Loans (Large Bank Peers)
Net Charge-offs as % of Loans* (Large Bank Peers) Zions, 3.30% Peer (weighted average), 3.26% Zions w/o Flying J, 2.86% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Zions Peer (weighted average) Zions w/o Flying J *Annualized Note: Peer group defined as U.S. bank holding companies with assets > $
Slide 17: Credit Performance Summary
Credit Performance Summary Compared to Large Banks, Zions has • Relatively – Larger, secured commercial portfolio – Smaller, high performing consumer portfolio • Results in – Higher Non Performing Assets, but – Lower net charge-offs
Slide 18: Reserves & Net Charge Offs (Regional Bank Peers)
Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200 billion plus footprint competitors WFC and USB. Source: SNL Reserves & Net Charge Offs (Regional Bank Peers) Reserves/ TTM NCOs 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Zions Peer Median Reserves/NCOs Pee
Slide 19: Bank & Insurance Trust CDOs 3% of Assets
Bank & Ins. Trup CDOs 3% of Assets Loans, 76% Bank & Ins. Trup CDOs, 3% All Other Investment Securities, 6% Investment Securities, 9% Other Assets, 16%
Slide 20: Capital Ratios
Capital Ratios 11.58% 7.45% 5.51% 2Q08 13.39% Total Risk Based 9.43% Tier 1 Risk Based 5.26% Tangible Common Equity 1Q09 12.87% 9.66% 5.66% 2Q09
Slide 21: Registration statement legend
Zions Bancorporation has filed a registration statement (Registration Statement No. 333-158319, including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus dated March 31, 2009 contained in that registration statement,