Welcome!

News Feed Item

Zions Bancorporation Announces The Results Of Its Sale Of A Portion Of Its CDO Portfolio

SALT LAKE CITY, Feb. 12, 2014 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) announced today the successful completion of the sale of collateralized debt obligation securities ("CDOs") that it identified for sale as of December 31, 2013.  Zions previously announced financial results for the fourth quarter of 2013 that included a $142 million, pre-tax, impairment charge on its CDOs.  Substantially all of this charge, or $137 million, resulted from impairing to their estimated fair values CDOs that the Company intended to sell. The sales included many of the CDOs that the Company had determined would still be prohibited investments under the January 14, 2014, Interim Final Rule ("IFR"), relating to the treatment of CDOs comprised primarily of bank trust preferred securities.

The sales also included other CDOs that were sold for risk management purposes.  Under the severely adverse scenarios used in Zions' CCAR 2014 stress test and capital planning, the securities sold would have contributed disproportionately to hypothetical projected losses.  As a result of the impact of IFR and of the planned and successful sales of these securities, Zions has notified the Federal Reserve of its intent to re-submit its Capital Plan, as required by the Capital Plan Rule.

During January and February, 2014, Zions executed the sales of the 35 CDO securities that were identified for sale as of December 31, 2013; as of that date these securities had a total par value of $631 million and amortized cost of $282 million.  Market conditions continued to improve in January and February, and Zions realized total proceeds on these sales of $347 million, thus resulting in realized first quarter pre-tax gains of $65 million.  These sales also resulted in a 36% reduction in nonperforming CDOs compared to December 31, as measured by amortized cost.  Pro forma for these sales, Zions estimates that the composition of its CDO portfolio, and the change since year-end, are as follows:




(Amounts in millions)

No. of 


Par


Amortized


Carrying


tranches


amount


cost


value









Performing CDOs








   Predominantly bank CDOs

23


$    687


$         617


$      499

   Insurance CDOs

19


362


359


292

   Other CDOs

-


-


-


-

Total performing CDOs

42


1,049


976


791









Reduction Amount from December 31, 2013

(6)


$  (114)


$         (80)


$      (80)

Reduction % from December 31, 2013

(13%)


(10%)


(8%)


(9%)









Nonperforming CDOs 1








   Credit impairment prior to last 12 mo. 

17


323


245


161

   Credit impairment during last 12 mo.

11


222


109


69

Total nonperforming CDOs

28


545


354


230









Reduction Amount from December 31, 2013

(27)


$  (517)


$       (202)


$    (202)

Reduction % from December 31, 2013

(49%)


(49%)


(36%)


(47%)









Total CDOs

70


$ 1,594


$      1,330


$   1,021









Reduction Amount from December 31, 2013

(33)


$  (631)


$       (282)


$    (282)

Reduction % from December 31, 2013

(32%)


(28%)


(17%)


(22%)









1Defined as either deferring current interest ("PIKing") or OTTI.

Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select western U.S. markets with combined total assets exceeding $55 billion. Zions operates its banking businesses under local management teams and community identities in 10 western and southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The company is a national leader in Small Business Administration lending and public finance advisory services and is a consistent recipient of numerous Greenwich Excellence awards in banking. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

SOURCE Zions Bancorporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
"Splunk basically takes machine data and we make it usable, valuable and accessible for everyone. The way that plays in DevOps is - we need to make data-driven decisions to delivering applications," explained Andi Mann, Chief Technology Advocate at Splunk and @DevOpsSummit Conference Chair, in this SYS-CON.tv interview at @DevOpsSummit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.