Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — IPO Roadshow (June 2009)
16 slides from Zions Bancorporation N.a's IPO roadshow presentation, Jun 1, 2009
Slide 1: Zions Bancorporation Capital Augmentation Actions
1 June 2009 Zions Bancorporation Capital Augmentation Actions
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: Capital Actions Announced Today
Capital Actions Announced Today Expected Tangible Common Impact Common Equity Distribution Program ~ $250 mm Up to $250 million, about 16% of current market cap Over 2-3 quarters Proceeds used for Ser A preferred tender and for general corporate purposes Goldman Sachs is sales agent Ser A $25 par Pr
Slide 4: Capital Actions Announced Today
Capital Actions Announced Today Expected Tangible Common Impact Common Equity Distribution Program ~ $250 mm Ser A $25 par Preferred Tender ~ $50 mm Subordinated Debt Modification ~ $218 mm Unilateral addition of option to convert to Ser A or Ser C preferred Applies to all $1.4 billion of outstandin
Slide 5: Capital Actions Announced Today
Capital Actions Announced Today • Expected Tangible Common Equity increase of up to $628 mm, which is ~111 bps of tangible assets • All except Common Equity Distribution Program equity expected to be completed 2Q2009
Slide 6: Capital Ratios—Pro Forma for Capital Actions
Capital Ratios—Pro Forma for Capital Actions Actual Actual 14.32% 10.22% 8.86% 5.89% 4Q08 8.28% Tangible Equity 13.39% Total Risk Based 9.43% Tier 1 Risk Based 5.26% Tangible Common Equity 1Q09 *Assumes regulatory disallowance of $218 MM of Tangible Equity from Subordinated Debt modification, and th
Slide 7: Reason for Capital Actions
Reason for Capital Actions • Replenishes capital levels to historical ranges • Provides additional capital cushion against potential stress losses • Minimizes dilution to current shareholders • Not the result of Fed stress testing, but guided by SCAP results
Slide 8: Net Charge-offs: Zions consistently better than large BHC average
Net Charge-offs: Zions consistently ~50-80 bps annualized better than avg of large BHC’s (Annualized % of Avg Loans) 1.47% 2.39% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Zions Peer (weighted average) Note: Peer group defined as bank holding companies with assets >= $10 billion. Peer data source: SN
Slide 9: Peer Comparison NCOs & NALs
Peer Comparison NCOs & NALs Source: SNL (Regulatory Data) Note: HBAN adjusted to exclude Franklin 4Q08 NCOs / Average Loans (annualized) 4Q08 NALs / Loans (period end) First Lien Mortgages 0.38% 0.69% 0.76% 0.82% 1.38% 1.86% 3.47% HBAN ZION BBT KEY RF STI FITB 2nd/Junior Lien Mortgages 0.30% 1.22% 1
Slide 10: Zions Stress Loan Losses
Zions Stress Loan Losses Based on Published Aggregate Treasury Adverse Loss Factors Zions Stress Test Loss Results Zions 12/31/08 Balance Treasury Adverse (%) * Losses First Lien Mortgage 3,878 $ 8.8% 341 $ Second Lien Mortgage 2,504 $ 13.8% 346 $ Commercial & Industrial** 18,036 $ 6.1% 1,100 $ Comm
Slide 11: Example Zions Stress Sensitivity and Capital Actions Impact
Example Zions Stress Sensitivity and Capital Actions Impact ($'s Millions) 2-Yr Cumulative Loss 6.9% 7.9% 8.9% 9.9% Loan Losses (1) $2,988 $3,320 $3,682 $4,014 Assumed Securities Impairment (2) $200 $300 $400 $500 Total Pre-tax Losses $3,188 $3,620 $4,082 $4,514 Tier 1 Common required (3) ($183) $43
Slide 12: Appendix
Appendix Calculation of estimates of tangible common equity impacts
Slide 13: Potential Preferred Tender Impact on Tangible Common Equity
Potential Preferred Tender Impact on Tangible Common Equity • 4.0 mm shares tendered @ $10.00 = $60 mm tangible common ($15 per share FV discount times 4.0 mm shares) • 3.0 mm shares tendered @ $11.50 = $40.5 mm tangible common ($13.50 per share FV discount times 3.0 mm shares) • Amount shown in Cap
Slide 14: Potential Deferred Swap Gain Recognition Impact on Tangible Common Equity
Potential Deferred Swap Gain Recognition Impact on Tangible Common Equity • Total deferred gain on terminated FAS 133 swaps that hedged Zions’ sub debt as of 1Q09 = $200 mm • The gain will be immediately recognized as pre-tax income for all debt that that is modified by the conversion feature; for i
Slide 15: Potential Sub Debt Modification Impact on Common Equity
Potential Sub Debt Modification Impact on Common Equity Illustrative Hypothetical Scenarios ($'s Millions) Face Value of Current Sub Debt $1,400 $1,400 $1,400 $1,400 Assumed % Accepting Modification 60% 80% 80% 85% Face Value of Modified Debt $840 $1,120 $1,120 $1,190 Actual Fair Value of Debt May 2
Slide 16: Zions Bancorporation Capital Augmentation Discussion
Zions Bancorporation Capital Augmentation Discussion 1 June 2009