Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — Keefe, Bruyette & Woods 2008 Large Cap Bank Conference
39 slides from Zions Bancorporation N.a's conference presentation, Aug 12, 2008
Slide 1: Keefe, Bruyette & Woods 2008 Large Cap Bank Conference
Keefe, Bruyette & Woods 2008 Large Cap Bank Conference 12 August ■ Colorado Springs, CO
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: Today's Agenda
Today’s Agenda Current Issues Credit Lockhart Funding Investment Portfolio Net Interest Margin Capital & Dividends Outlook Summary
Slide 4: Strong Asset Quality Relative to Peers: NPAs as % of Total Assets
Note: Peer group defined as bank holding companies with assets >= $10 billion. At the date of this data was not yet available for 2 of the 50 companies in the peer group. Peer data source: SNL NPAs as % of Total Assets Strong Asset Quality Relative to Peers
Slide 5: Strong Asset Quality Relative to Peers: NCOs
NCOs as % of Average Total Loans (Annualized) Note: Peer group defined as bank holding companies with assets >= $10 billion. Peer data source: SNL Strong Asset Quality Relative to Peers
Slide 6: Strong Asset Quality Relative to Peers: Reserves / Net Charge Offs
Peers 1.5 Reserves / Net Charge Offs (Annualized) Note: Peer group defined as bank holding companies with assets >= $10 billion. Peer data source: SNL Zions 2.0 Strong Asset Quality Relative to Peers
Slide 7: Strong Asset Quality Relative to Peers
2 nd Quarter Reserves / Net Charge Offs (Annualized) Source: SNL As Reported NIM for selected banks ($5-$20 Billion Market Cap or Large Presence in the West) Strong Asset Quality Relative to Peers
Slide 8: Loan Portfolio Diversification
C&I 47% Consumer 18% CRE 34% Loan Portfolio Diversification Loans by Purpose - 6/30/2008
Slide 9: Residential Mortgage Loans
Total Outstanding: $1.9 billion (6/30/08) Residential Mortgage Loans
Slide 10: Bankcard
Total Outstanding: $0.2 billion (6/30/08) Bankcard
Slide 11: HECL Only
Total Outstanding: $1.8 billion (6/30/08) Average HECL FICO: 756 HECL Only
Slide 12: Commercial & Industrial Loans
Commercial & Industrial Loans
Slide 13: Commercial Real Estate Loans
Commercial Real Estate Loans
Slide 14: Residential Construction Components
Residential Construction Components Loans by Purpose - 6/30/2008
Slide 15: Land Acquisition & Dev. Components
Land Acquisition & Dev. Components Loans by Purpose by Geography - 6/30/2008
Slide 16: Diversified CRE Portfolio
Average LTV: 55.7% (as of 6/30/2008) Diversified CRE Portfolio Loans by Product Type and Location - 06/30/08
Slide 17: Actual CRE LTV Ratios
Average LTV: 55.7% (as of 6/30/2008) *LTVs for CRE loans with a commitment amount of $1MM or greater. Appraisals as of loan origination, or renewal (in a declining market), or upon adverse classification. Actual CRE LTV Ratios* Loans by Product Type and Location - 06/30/08
Slide 18: Loan-to-Value Comparison For Residential A&D & Lot Loans
*60 of the 216 updated appraisals come from affiliates not shown on the table above (UT, CO, and TX). **Jan-08 LTV’s based on initial appraisal or reappraisal prior to Jan. 2008 Jun-08 LTV’s based on most recent reappraisal post Jan. 2008 Loan-to-Value Comparison For Residential A&D & Lot Loans reap
Slide 19: Impact of Re-Margining
Strong underwriting and credit management reduced losses almost by half Note: Includes Top 20 substandard loans each quarter and all doubtful loans greater than $1 million. Impact of Re-Margining • Of the 50 largest credits classified substandard or doubtful at any time during the past 9 months ther
Slide 20: Residential Land and Development Loans
Residential Land and Development Loans 6/30/2008
Slide 21: Select California Loan Views
Select California Loan Views: 6/30/2008
Slide 22: Credit Quality Outlook
Credit Quality Outlook • Weakness in residential construction activity and land values in the Southwest expected to persist into 2009 • No current evidence of material spread of credit problems to other geographies or loan categories • Some further increase in NPAs likely • Provisions and Net Losses
Slide 23: Loan Growth Outlook
Loan Growth Outlook • Loan demand and pricing are strong across the footprint • Managing balance sheet growth in the context of current capital generation and funding capabilities
Slide 24: Today's Agenda
Today’s Agenda Current Issues Credit Lockhart Funding Investment Portfolio Net Interest Margin Capital & Dividends Outlook Summary
Slide 25: Lockhart Funding
As of 6-30-08 GAAP capital impact if remaining Net Lockhart exposure is brought on the balance sheet (including impact of fair value marks): -12 bps 10/31/07 Corporate Purch. & Paydowns 06/30/08 AAA MBIA insured (small business loans originated by Zions) $1.2B $-1.2B $0.0B AAA rated bank trust pref’
Slide 26: Today's Agenda
Today’s Agenda Current Issues Credit Lockhart Funding Investment Portfolio Net Interest Margin Capital & Dividends Outlook Summary
Slide 27: Held to Maturity Securities
6-30-08 (in Billions) *All fair value marks have been recognized through OCI Held to Maturity Securities
Slide 28: Available for Sale Securities
*All fair value marks have been recognized through OCI 6-30-08 (in Billions) Available for Sale Securities
Slide 29: Securities Transferred to Held To Maturity
Securities Transferred to Held To Maturity • $1.500 billion of predominantly A-rated (or higher) Bank & Insurance Trust Preferred CDO securities transferred from AFS to HTM on April 30, 2008 – $1.227 billion fair value – $273 million unrealized pre-tax losses from marks in OCI accrete back into tang
Slide 30: Today's Agenda
Today’s Agenda Current Issues Credit Lockhart Funding Investment Portfolio Net Interest Margin Capital & Dividends Outlook Summary
Slide 31: A High Net Interest Margin
A High Net Interest Margin 2Q 2008 NIM for Selected Banks Source: SNL As Reported NIM for selected banks ($5-$20 Billion Market Cap or Large Presence in the West)
Slide 32: A Stable Net Interest Margin in a Volatile Environment
Zions NIM vs. 30-Day LIBOR A Stable Net Interest Margin in a Volatile Environment Source: SNL As Reported NIM (Top 50 Banks by Assets) LIBOR is Quarter Average
Slide 33: NIM Outlook
NIM Outlook • Positives – Loan pricing • Pressures – Continued strong competition for deposits – Weak core deposit growth – Adverse shifting of funding mix – Increasing NPA’s • Summary: Still some downward pressure
Slide 34: Today's Agenda
Today’s Agenda Current Issues Credit Lockhart Funding Investment Portfolio Net Interest Margin Capital & Dividends Outlook Summary
Slide 35: Actual / Pro Forma Capital Ratios
Zions Bancorporation Actual / Pro Forma Capital Ratios
Slide 36: Dividends and Payout Ratio
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Slide 37: Today's Agenda
Today’s Agenda Current Issues Credit Lockhart Funding Investment Portfolio Net Interest Margin Capital & Dividends Outlook Summary
Slide 38: Outlook Summary
• Managing balance sheet growth in the context of current capital generation and funding capabilities • Low cost deposit growth: Continues to be weak • Security impairment charges may continue at 1H 2008 levels • Credit costs: Similar to 2Q through year end, perhaps slight increase • Net Interest Ma
Slide 39: Keefe, Bruyette & Woods August 2008
Keefe, Bruyette & Woods 12 August 2008
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