Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Zions Bancorp (NASDAQ:ZION)

Q3 2007 Earnings Call

October 18, 2007 5:30 pm ET

Executives

Clark Hinckley - Director of IR

Harris Simmons - Chairman, President and CEO

Doyle Arnold - VC and CFO

Jerry Dent - CCO

Analysts

Steven Alexopoulos - J.P. Morgan

Jennifer Demba - SunTrust

James Abbott - FBR Capital Markets

Tony Davis - Stifel Nicolaus

Manuel Ramirez - KBW

Eric Wasserstrom - UBS

Ken Usdin - Banc of America Securities

Todd Hagerman - Credit Suisse

Heather Wolf - Merrill Lynch

Joe Morford - RBC Capital Markets

Operator

Good day ladies and gentlemen and welcome to the Third Quarter 2007 Zions Bancorp Earnings Call. My name is Audria, and I will be your coordinator for today. At this time all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator instructions).

I would now like to turn the call over to your host for today Mr. Clark Hinckley, Director of Investor Relations. Please proceed sir.

Clark Hinckley

Good afternoon and thank you for joining us for our third quarter 2007 earnings conference call. If any of you do not yet have a copy of the earnings release it can be downloaded from our website in pdf format at zionsbancorporation.com. The link to the release is found near the top of the page.

During this afternoons call we will discuss the expected performance of the company. As you know such statements constitute forward-looking information within the meaning of the Private Securities Litigation Act. Actual results may differ materially from the projections provided in this call, since such projections involve significant risks and uncertainties. A complete disclaimer is included in the press release and is incorporated into this call. We're not responsible for transcripts of this call made by independent third parties.

I would now like to turn the time over to our Chairman and CEO, Mr. Harris Simmons.

Harris Simmons

Thank you very much Clark. Thank you for joining us all. This has obviously been an extraordinary quarter in terms of credit market conditions, and the demise of much of the capacity and product availability in the mortgage markets. And the impact of these conditions on the residential real estate sector, and you are seeing all of this reflected to some extent in our financial results, in terms of higher provisions and non-performing assets, primarily related to the residential construction sector. And in the tighter spreads on our qualified special purpose entity, the evaluation of a basis swap, all of which negatively impacted income during the quarter.

It also continues to be a challenging environment in terms of deposit, generation and margins. But there are also some great strengths that underlie it all. We saw some very strong loan growth during the quarter. Losses, actual net charge-offs remain reasonably moderate and the fundamental business is still, we think quite sound and growing.

So, we're both cautious I think with respect to the residential sector, but reasonably optimistic in other areas. We had a question or two about the sort of the dual pre-announcements that we made during the quarter, and I would like to take just a moment to comment on those.

I spoke at an Investor Conference on September 12th, and Doyle Arnold spoke at the summer conference on September 26th. We felt it important to convey the fact that we are seeing the need for higher provisioning as we were meeting with investors at those conferences, I did so qualitatively on the 12th as we had more information, we were more specific on the 26th and filed an 8-K with slide for Doyle’s presentation with the best information we had at that time. But it was information at a point in time and we have not yet concluded our process of determining the required level of reserves for the quarter.

As we finished up that process, it became very good for provisions and should probably certainly be somewhat higher than we had estimated, and since we had given a target range for the provision back on the 26th, we felt that we are to release the timelines we could update that with what appeared to be the final number, which you now see in our release with a second filing that we made a week ago.

So, I want you all to know, we are committed to trying to keep you informed as we have information we think is material to the evaluation of our prospects and stock price, and that’s what we try to do during the quarter, and we think we do it all again if given the opportunity. We think was the right thing to do. With that, I am going to turn the time over to Doyle and he’ll take us through the numbers.

Doyle Arnold

Thank you, Harris and good afternoon and good evening everybody. With everything that occurred in the quarter, my prepared remarks will be probably a bit more lengthy than usual. I want to try to walk you through both the ordinary things, as well as some of the unusual things that impacted the quarter and give you good flavor for how to build -- as best we can but how to build your models going forward.

First of all a summary; earnings per share was $1.22 consistent with the pre-announcement that we made ten days or so ago. This includes as best we can estimate it the total impact of the disruption in the financial markets as opposed to credit conditions, impacted those earnings by about $0.08 a share including $0.015 to $0.02 of earnings from our securities conduit, Lockhart and about $0.06 negative impact from non-hedged derivatives, both of which I will talk about further as we go through the financials.

Loan growth was $1 billion or 11.2% annualized from the end of the second quarter compared to $843 million in the second quarter over first and $547 million of organic growth in the first quarter. This, as we suggested in some investor discussions, towards the end of the quarter it looked like long road was strengthening and it certainly did as the quarter went on.

Deposit growth, however did lag loan growth significantly. Average core deposits only increased about $195 million and average DDA declined by $187 million. I'll comment further on that later as well. The NIM, net interest margin decreased 9 basis points to 4.44% for the quarter. I will break apart the nine basis point decline for you as well, later.

As we announced earlier, net charge-offs were about $18 million or about 19 basis points annualized of average loan, higher than last quarter, but still a very respectable level.

Also, as earlier disclosed, provision for losses was about $55 million this quarter. The increase was driven in part by the strong loan growth, but also clearly by the deterioration in credit quality including that in the residential construction and development sectors in Arizona, Southern California and Nevada. The efficiency ratio adjusted to exclude minority interest was about 56.6%, up just slightly from the previous quarter.

So in summary, the loan growth was very strong, but deposit growth is expected, remains challenging. Our credit costs increased significantly driven by the deteriorating conditions in the Southwestern states. And expenses remained well controlled and like many banks, we did see some impact, probably not as severe as some others from the disruptions in financial markets.

Turning to some of specifics now, if you want to follow me to page 11 of the financial tables. Weighted average, common shares declined $1.2 million to $107.9 million, reflecting both repurchases of stock during the quarter and also the impact of lower stock price on the treasury method of accounting for stock options.

Tangible equity ratio down, fourth line from the bottom of the page, ended the quarter at 6.40%, down a bit from the prior couple of quarters, both reflecting the stock buybacks as well as the very strong asset growth but well within our target range for tangible equity of 6.25% to 6.5%.

During the quarter we did spend $90 million of repurchasing shares, about 1.2 million shares in total, but we did suspend internally the stock buyback after August 16 when the financial markets clearly become disrupted and we were concerned about the need to possibly bring some or all of Lockhart Funding assets back on to our balance sheet. At the end of the quarter and today we have $56 million of remaining authority under the existing stock buyback authorization.

Turning to page 12, we’ll now see the specifics of some things that we did talk about. You will notice the second line of numbers, interest-bearing deposits and commercial paper increased sharply to $513 million that was up $474 million. Essentially all of this increase reflects the fact that we and a number of our affiliated banks or subsidiary banks purchased commercial paper issued by Lockhart Funding in varying amounts during, on varying days, during the quarter when Lockhart Funding was unable to sell into the market sufficient paper to meet its needs.

At the end of the quarter as stated in the release about $500 million of commercial paper was still on our books. As of today that is down to about $160 million and we continue to be able to replace the paper that we are holding as it matures now with paper issued into the market as the asset-backed commercial paper market. At least for us it appears to be slowly, incrementally returning to something more approaching normal. I will comment a little further on that later as well.

Note that loans increased $1 billion to about $38 billion, before provision, our loan losses reserve. In the deposit section you can note that the period end to period end, and DDA was down $535 million, average was down $187 million. And I will comment on that, it appears that this has been particularly impacted by deposit balances from commercial and commercial real estate customers and others related to the residential development in the home sale business in the Southwest.

We have seen some title company balances continue to decline, we have also seen development customers reduce cash to pay down debt and complete projects. And we think that that explains a significant portion of the decline. DDA balances were more flattish in the number of the other markets outside of those that I just mentioned.

The interest rate bearing deposits, if you exclude jumbo time, it actually increased $472 million during the quarter. We did pay down some jumbo time deposits and you'll note further down the page Federal home loan bank advances, and other borrowings grew $1.37 billion during the quarter. And that is essentially how we funded most of the loan growth this quarter.

The core deposit growth was, I would not characterize is strong anywhere, but on balance it was better in Amegy Bank, Zions bank, Vectra bank, Colorado and the specific North West banks. But again weakest in Arizona, California, and Nevada all of which saw a decline in core deposits.

Page 13; the consolidated statement of income, net interest income before provision was $477 million. That was actually a slight increase of $7.3 million driving that was this very strong loan growth. But mitigating that or offsetting it was the lower net interest margin. Again, we will come back to that in a moment.

The non-interest income section, nothing worthy of note on service charges and fees, they continue to grow kind of in-line with trend. Loan sales and servicing income increased this quarter from $9 million to $11.6 million. That is driven by the fact that, unlike prior quarter and the one before, there was no impairment charge taken this quarter that impacted that line item. There was a $5.1 million impairment charge, as you recall in the second quarter and a $4.2 million charge in the first quarter. And again, there was none this quarter.

Going to turn now to income from securities conduit, this is the fee income that we derive from Lockhart Funding, and since it rises and falls based on the spread between the earning assets in Lockhart and the cost of the commercial paper that we used to fund those assets and it comes back to us in the form of fee income on the liquidity agreement and servicing agreement that we provide.

You’ll notice that that number declined from $6 million to $3.2 million reflecting the fact that commercial paper became very, very expensive during this quarter. The spread over LIBOR compared to normal conditions, probably widened at its peak to 75 to 80 basis points over what we would normally expect. So, you may want take note of the numbers I am going to just quote.

During July before commercial paper rates for these kinds of assets began to rise sharply, in July we earned $2 million from the conduit, in August, we earned $1 million, in September we earned $0.3 million and that decline reflects the fact that more and more of the old commercial paper matured and was replaced with more expensive commercial paper as the quarter went on.

In recent weeks we have seen those spreads begin to come back down towards a more normal level, but they are still probably 25 to 30 basis points above historical norms. So, while we do expect to see just this line item return to something more like its historical trend, it may not all happen this quarter. It may be flattish this fourth quarter and come back as again there is the role of commercial paper, and that creates some lag and how quickly it adjusts both on the as -- commercial paper rates increased and will create a lag as they decrease again.

The dividends and other investment income was up about $3.4 million driven primarily by strong performance in investments, use accounting for under the equity method, nothing particularly unusual. The next line item does have some unusual aspects to it. Trading in non-hedge derivative income swung from $5.2 million plus to $5.2 million negative. Most of this decline, of that 10 million, was caused by the decreasing spread between prime and LIBOR during the quarter, which again is directly related to the disruption in the financial markets that resulted in LIBOR rates moving upward significantly versus prime. This reduction impacts earnings by about $0.06 per diluted common share after tax.

And let me explain this briefly. As a part of our interest rate risk hedging program wherein we swap pools of variable rate loans for received fixed contracts, we have retained the LIBOR prime basis risks rather than force or pay Wall Street to take it, which we think would be rather expensive.

Normally this makes money, and is not particularly volatile, and we don’t think adds to the net risk that the company is taking, but not this quarter. Clearly the disruption in the prime LIBOR spread this quarter caused this thing to swing more than we have seen in the last six years. These hedges or this basis hedge does not qualify for hedge accounting under FAS 133 and it all goes through the income statement. Over time assuming that the LIBOR prime spread returns to normal, which it has not fully done yet, there is still some premium pricing in LIBOR, it appears. But overtime, this line should revert to normal, but again it may not happen all in one quarter. It may take a while. It's purely dependent on how quickly concerns about financial system fully settle down.

And then finally I'll comment on equity gains. You'll notice there's an $11 million gain, but also note that there was minority interest to $7.5 million. That was -- this is a gain that arose from a sale of a company and a portfolio company in one of our venture capital funds. The gain was shared with minority investors in the funds. So net of minority interest and income tax, the favorable impact here was about $1.9 million after tax or $0.02 a share.

Now, I'd like to talk about a non-interest expense on the salary and benefits was up $6 million, compared to the second quarter, but still slightly below the first quarter levels. Total non-interest expense we think remains pretty well contained and the efficiency ratio was for all intents and purposes flat.

Turning to some, a page I am sure you are interested in our commentary on page 16. We talked about credit quality. As you may have expected from our previous disclosures, first of all let me note that non-accrual loans are up significantly to $174 million and non-performing assets are up about double to $196.5 million. I'll also note that accruing loans past due 90 days with mortgage still accruing were up just under $17 million to $16.5 million.

I would also like to note that non-accruing loans that are fully current, as to principle and interest constitute 44% of the non-accrual loans. So accruing loans that are past due, but where we're still accruing interest are up, but non-accruing loans were recurred as to interest, but not booking it, are also up. And that 44% of non-accrual loans that are current out of this total compares to 30% last quarter.

I'm just trying to give you a flavor for this to suggest that couple of things; one, we are trying to be proactive in identifying issues. Two, there is judgment involved as when and where to place a loan here, where we have clearly parsed borrowers that we think are likely in some degree or stress even though they are still current, and parsing them from other borrowers who may behind, but we think are not fundamentally under stress that will preclude repayment of the loan.

As already noted charge-offs net were $18 million, about 0.19% of annualized annual loans, still a relatively low level and for example below the 0.21% in the fourth quarter of 2006. Provision for losses was $54.5 million, about $37 million more than net charge-offs. This reflects not just the strong loan growth, but as we've discussed, some significant softening in credit quality outlook, particularly in relation to residential land development and construction activity in the south west, with Arizona being most severely impacted.

Ratio of total allowances, including the allowance from funded commitments to total loans increased to 1.16%. And as you can see, because of the change in non-performing assets, the allowance compared to non-performing loans was down.

Turning to loan growth, page 17. Loan growth was very strong as previously mentioned. The largest part of that $586 million was in commercial lending. The next biggest piece was $329 million in CRE loans. The largest growth there was in Amegy Bank, Texas. But some of the other banks also saw a loan growth in this category. Primarily as a result of draw downs of previously extended commitments on CRE projects.

The consumer loans increased to $113 million, concentrated in Zions First National Bank, here in Utah and Idaho.

Page 18, the net interest margin, first let me note that we've changed the format of this page. We’re showing you the third quarter compared to the three months of the second quarter, the previous quarter. We used to do, in previous format, we would have third quarter this year compared to third quarter of last year. We thought it might be more useful to you to show it this way. So, you can clearly see the quarter-to-quarter change in pricing, and spreads, and things like that. We are open to comments, if you think the other was more useful to us. You all know how to reach Clark and we will take your feedback. But we thought this would be more useful.

Now, turning to the substance of the page. The net interest spread, near the bottom of the page declined, as you can see the 3.55%, the NIM decreased 9 basis points to 4.44%. And let me try to parse the 9 basis points in to some major components for you.

For DDA, we had no impact on the NIM it would have to grow roughly in-line with balance sheet growth, so that the portion of our funding remained constant. It would have grown roughly $200 million, for to have a neutral impact on the NIM. Not only did it not grow $200 million, but on an average it shrank just under $200 million. That had a 4 basis point negative impact on the net interest margin.

The net interest margin was also negatively impacted by the purchase of commercial paper by our banks and by the Bancorp that was issued by Lockhart Funding. We kept some of the spread by doing those purchase that was a [statutory] impact. But basically the incremental spread was narrower and the purchases inflated the balance sheet and this had a negative impact of about 1.5 basis points on the margin.

The strong loan growth which had to be funded with market rate liabilities essentially in its entirety had about a 2 basis points impact, and the final two basis points was primarily within the interest bearing deposit category, most of the growth occurred in the higher rate categories, the Internet money market, Internet savings accounts, money market, mutual funds etcetera. So that's the source of, as I've said a couple of times with investor conferences lately, it was going to be very hard to call the NIM this quarter because there were so many moving parts. They were all the moving parts that we could identify for you.

As noted in the release, we do not believe that the reduction in the Fed's target -- Fed Fund rates had any measurable impact on the margin during the third quarter. However, it is likely to have a negative impact in the fourth quarter as yields on variable rate loans decrease, but the market remains very competitive for deposits, and I will comment on that in the guidance section of my comments.

Just an update on Lockhart Funding, as most of you are aware, that was under some stress as we are all conduits and QSPEs this quarter. I was concerned about whether we could keep all or part of it off of our balance sheet, whether it could successfully sell its commercial paper and remain viable etcetera.

We did not, at any point in time, triggered the liquidity agreement, but back-up liquidity agreement, that Zions' first national bank has with Lockhart under which we would have actually started to purchase assets out of Lockhart Funding and bringing them back on to our balance sheet.

However, we did purchase commercial paper issued by Lockhart during the quarter. On average they reported they own $232 million of Lockhart commercial paper. At period end we owned about $500 million. Yesterday we had $174. Today we ended with $160, so you can see the trend is back toward selling it all into the market. The term and cost of the funds remains above normal, but both of those are slowly improving as well, and barring some further disruption in the market we think Lockhart will continue to be able to fund itself, and do not anticipate triggering a liquidity agreement for bringing Lockhart back onto our balance sheet. And in the normal course of events we have pay downs and run offs. The assets in Lockhart have reduced from about $3.4 billion in the last quarter to about $3.1 billion at the end of this quarter.

Just a couple of other update; One, we mentioned last quarter we had an agreement to sell 11 branches that have been part of The Stockmen’s acquisition; these are owned in California, will include approximately $171 million of loans and 209 in deposits. We expect that transaction will close during this quarter.

So, summary and a little bit of go-forward guidance; First of all, let me comment that clearly things are changing out in the market. So it is difficult to give guidance that will be spot on, more so than usual, it is never easy, but we will do the best if we can. We continue to see pretty strong organic loan growth and I am not sure we will continue to strengthen from here, but then again I didn’t think it would strengthen to this point. We've seen continued very strong loan growth in the first, whatever -- what is it now about two and half weeks of this quarter, so somewhere between second and third quarter, but not sure. Time will tell.

We do expect that the growth will come more from the commercial loan portfolio than in the CRE portfolio, that it will be driven primarily by Texas and the Intermountain states and Colorado, with continued flat to declining portfolios in California, Arizona and Nevada.

The decline in residential construction in those Southwestern markets, we think is likely to persist for some time and that loan totals in those, our banks in those areas are going to continue to be weak and may continue to shrink.

We think that the deposit market remains very competitive and we think core deposit growth will continue to be modest. Demand deposits have been somewhat volatile, we have seen pay down reductions in demand deposits coming from the things associated with residential development and construction.

Earnings credit rate on commercial checking accounts has been lowered in conjunction with the decrease in short-term interest rates. This may have a positive impact on commercial demand balances in the next few months, but fundamentally we and for commercial, some commercial customers look at commercial paper as an alternative to buying CDs and the commercial paper has been a very attractive investment from some of these people.

And we have some financial institutions in the West that have been public about liquidity pressures and we think that there are a whole bunch of reasons why deposit costs are going to remain high. We have not done, nor have we seen and our competitors do much in the way of lowering interest rates in response to the Feds rate cut and we don't see that happening in the near-term, may drift down over time, but it hasn't happened yet, more than, say may be, 15% to 25% of the rate cut has been passed on in administered rate accounts at this point.

So with loan growth and excessive deposit growth in a very competitive deposit market, there is likely to be continued pressure on the margin in the near-term, as was the case this quarter and will be next as DDA balances go to some degree, so goes the margin that remains a very significant factor. Our best estimate is that NIM will likely compress a bit in the near-term.

Credit Quality. We are in a part of the cycle where it is very difficult to predict. Our expectation is that, this is going to be fairly long cycle with regard to residential construction development. We've not seen that spread appreciably to other sectors of our activity. Our best estimate is that we will see a further up tick in non-performing assets this quarter, may be not proportionately as severe as this quarter, but it probably will go up.

Losses may go up slightly, but we don't think at this point that the provision is going to go up from here in the near term or will even be as high, as it was this quarter. Probably somewhere between the second and the third quarter numbers for the provision would be a best estimate at this point. But that’s going to be totally driven by continued developments in the marketplaces unfolds.

The efficiency ratio, we think will relatively stable or perhaps improve modestly. We did complete during the quarter the California Bank & Trust systems conversion on to our common platform. That conversion went very well. On a net basis, we should begin to see going forward about $6 million to $7 million annual expenses saves as a result.

Also like to remind, kind of partially offsetting that is that, FDIC premiums will add about $2.6 million of expense in the fourth quarter as we started to burn through the credits, that we had in some of our banks. And we'll add about 11; I think we previously discussed this about $11.5 million pre-tax in 2008.

Finally we're going to remain for a time somewhat cautious with regard to our capital levels and probably limit share repurchases in the near term to little or none this quarter. Just want to watch, make sure of it, we see how the market unfolds before we get too aggressive about stock buybacks. Longer term we do remain committed to returning excess capital to the shareholders and not holding it.

So in sum, the quarter was marked by the impact of turbulent financial markets. We've tried to quantify that impact for you. Decrease in credit quality, driven by the conditions in the Southwestern markets. But strong loan growth in other geographies, and somewhat week deposit growth. And well controlled expenses, so with that I will pause and will look forward to your questions.

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from the line of Steven Alexopoulos with J.P. Morgan. Please precede sir.

Steven Alexopoulos - J.P. Morgan

Hi. Good afternoon guys.

Clark Hinckley

Hello, Steven.

Steven Alexopoulos - J P. Morgan

Couple of questions on the non-performers [by now the] surprise. Can you first talk about what’s the work out strategy here with the residential construction loans? Are you going to plan out restructuring them? Are you working towards foreclosure? Trying to sell them what are you thinking here?

Harris Simmons

Jerry do you want to comment, are you still with us. Our Chief Credit Officer, Jerry Dent is in another city, you want to comment or?

Jerry Dent

I would be glad to. It really depends on the particular circumstances of the credit. There are those that we would try work with the borrower first of all. See if we can get them into a position where they can handle the debt load and work through it. But if necessary, we would take steps to foreclose on it. But that’s generally a last step that we would go forward with, because it's better to keep the property in the market in the name of the borrower when it is at all possible.

Doyle Arnold

And in some cases we will some note sales as well and the markets are better developed than they were the last cycle to accommodate that as well. So, --

Steven Alexopoulos - J.P. Morgan

Did you guys sell any non-performers during the third quarter?

Harris Simmons

No.

Jerry Dent

Nothing material during the quarter.

Steven Alexopoulos - J.P. Morgan

Okay. And maybe just one final question; In terms of the markets where you are seeing the most pressure on the residential construction, are there any signs at this point of a broader spillover into other areas of the commercial real estate book?

Harris Simmons

I don’t think so, not at this point.

Steven Alexopoulos - J.P. Morgan

We’re not really noticing that in the other segments of our commercial waste paper portfolio at the present.

Harris Simmons

We’re seeing some, and I caveat that with, I mean we are seeing some, for example, the Orange County, California office markets is recently soft. We have very little exposure there. And as you look around you will be able to see couple of things like that, but nothing that’s really systemic.

Steven Alexopoulos - J.P. Morgan

Okay. Great. Thanks guys.

Operator

Your next question comes from the line of Jennifer Demba with SunTrust. Please proceed.

Jennifer Demba - SunTrust

Thank you. Good evening.

Harris Simmons

Hi, Jennifer.

Jennifer Demba - SunTrust

Hi. How much of our new non-performing assets came from Arizona versus Nevada versus California?

Doyle Arnold

New non-performing, let me just -- I think I have that here. Let’s see, I have non-accruals, of the large non-accruals as of that’s $0.5 million and above. We lump all this we don’t break, I don’t have a breakout by geography of the smaller things. About $26 million came from Arizona of the increase, about $20 million from Nevada, and about $27-ish million from California. So, a big chunk of it.

Jennifer Demba - SunTrust

Okay. And the net charge-offs that you had in the third quarter, can give us a flavor of what you saw there in terms of residential construction credits?

Doyle Arnold

I don’t have any, Jerry do you anything that would you like to comment on that? I don’t know if there is any?

Jerry Dent

I can tell you, just let me…

Doyle Arnold

In total, excuse me, Gerald. It would probably, well it just to indicate, over $1 million we had two charge-offs. The largest one of that $6.6 million was a residential construction charge-off. The other one was a commercial loan of about $2.5 million.

Jennifer Demba - SunTrust

Thanks a lot.

Harris Simmons

Yep.

Operator

The next question comes from the line of James Abbott with FBR Capital Markets. Please proceed.

James Abbott - FBR Capital Markets

Yeah hi. My question is sort of related to Jennifer’s there on the net charge-off composition. What I’m looking for is, how much, if any, of the charge-offs were related to home equity or other types of consumer loans or was it primarily on the construction front? So, I’ll ask that one and then I have a follow-up.

Doyle Arnold

Very little on the home equity front. Our charge-offs historically on home equity credit lines are very minimal, and we’re not seeing any kind of a movement upward there. Those that were related to residential housing were primarily residential construction related.

James Abbott - FBR Capital Markets

Okay. And so the rest of the charge-offs were commercial and industrial in nature?

Doyle Arnold

Primarily, yes.

Harris Simmons

Well, and just small consumer, we have got a small bank card portfolio etcetera, so there are odds and ends, and we have this sort of a baseline of small consumer charge-offs that you would see kind of quarter-in and quarter-out that make up most of the rest of it.

Jerry Dent

And that’s really not changing much each quarter.

Doyle Arnold

You know, further to what the question may be behind your question, if you go back and look at I think in Harris's presentation at the conference in early September, we actually gave you the FICO scores on our consumer loans and origination and most recent and you will find that they're quiet high and we're not really subprime lender it's only first or seconds.

James Abbott - FBR Capital Markets

If I recall, I think they went up, and refresh was now right?

Doyle Arnold

That’s correct, if they were up slightly.

James Abbott - FBR Capital Markets

That’s unusual, but that's great to hear.

Harris Simmons

We concur.

James Abbott - FBR Capital Markets

Can you also, can you give us a sense of the non-accrual increase? You gave us the geographies. Was it primarily construction that was driving that? Do you have a breakdown of construction?

Doyle Arnold

I don’t have an exact breakdown but the bulk of -- by far the largest component would be residential land development and construction.

James Abbott - FBR Capital Markets

Okay.

Harris Simmons

You have any color to add Jerry?

Jerry Dent

No that's exactly right, that's exactly right.

James Abbott - FBR Capital Markets

And can you tell us, I guess I was a little bit surprised that the provision wasn't larger given the increase in non-accrual there. I was not expecting that much of an increase in non-performing assets, given the provision number that was pretty down. What can you tell us about loan to values and those kind of things because we've heard all kind of stories about values deteriorating rapidly in some of those markets and so what can you tell us and I assume that’s the reason why you didn't provide more?

Doyle Arnold

Firstly, in our methodology, Jerry jump in here at anytime he wants, but a land value decline isn't the trigger per se, its our belief if the project there the borrowers are experiencing stress as we go back and we review at in, that's what may trigger it downgrade in the credit and possibly putting it on non-accrual status etcetera. When we do that we then typically would go out and get a reappraisal on the property and we're seeing significant declines in value in land when those reappraisal are coming in kind of 30% and 40% driven primarily not as much as probably some of this, not as so much by declines in value of the individual lots to say, but the fact that the lots are taking in much longer time to sell and that the appraisers are applying a much higher discount rates. So you have got to cash flows stretched out way into the future and a heavier discount rate being applied to them. It gets you to a significant decline in net present value today. Do you want to say anything different or add to that Jerry.

Jerry Dent

One of the things we’re finding is that the appraisers in today's market and in those areas such as Southern California and Phoenix and Nevada are having a very difficult time coming up with what is really a realistic value, because we are right at the point in time were the sales are being so deeply discounted, that everybody is of the opinion that, yes that's what happening today, but in reality the properties are worth more than that and when things correct a little bit the values will come back up. So they're having a difficult time coming up what they would term as a realistic appraisal.

James Abbott - FBR Capital Markets

In terms of comp sales are you seeing that much of a decline? If a parcel of land was purchased a year ago and then sold again today would it be a 30% decline?

Jerry Dent

Those are actually transacting in the 20% plus decline, but there is not very many transacting because the discount needed to be taken is so low.

James Abbott - FBR Capital Markets

Okay, thank you.

Harris Simmons

I would also just comment with respect to the provisioning, I mean, particularly on land development. We start with recently conservative loan to value ratios going into the deal. So, they are generally structured to withstand a fair amount of decline, because you would expect that when you go through this kind of a cycle. I mean, everybody knows coming into it. But land is going to see the steepest declines -- that finished product which is available to be sold, should hold up better. So, that is a fact for provisioning. So, you are not going to see the same kind of provisions across the board for every asset because it's uneconomical.

Operator

Your next question comes from the line of Tony Davis with Stifel Nicolaus. Please proceed.

Tony Davis - Stifel Nicolaus

Hi, Harris and Doyle and Jerry. A little bit more I guess, drilling in the same topic here. As I recall, well, I wonder if you could be a bit more specific with respect to your weakest MSAs. And the question would be, your best guess is on two points. How much of land values in those particular markets has fallen from the peak and if you had to pick on the inning. What inning is it in the game?

Doyle Arnold

That's another good question.

Harris Simmons

Question is; is it going to go extra innings?

Doyle Arnold

I would guess that in terms of the weakest MSAs where we have significant exposure would be the Phoenix area and the Tucson area. And they would probably be followed in terms of where we have the most significant exposure by the Inland Empire. But the exposure is much, much less there for us.

Harris Simmons

I would actually say San Diego County would be third

Tony Davis - Stifel Nicolaus

Would be third.

Harris Simmons

Okay.

Doyle Arnold

And then, there are other markets that are very weak. Las Vegas and the Central Valley part of California stocked in Sacramento area. But again proportionate to who we are they are not quite as important.

Tony Davis - Stifel Nicolaus

And you'll now take a stab at that’s rank.

Doyle Arnold

I'll just make the comment. If you look at the last cycle it was about a five year cycle from the deep to the trough in terms of the -- if you look at new housing starts, which went from kind of about ‘96 to the peak for 2001 kind of the trough. I think we’re probably a couple of years into this, I think generally we would expect, we are probably a couple of years away from this bottoming out. Two maybe three in terms of really seeing some pickup

Tony Davis - Stifel Nicolaus

Jerry, the last number I remember hearing from you was that I think this was again back in the first quarter. But I believe the classified loans, the percentage of loan before that was classified at that point was an all time low. Somewhere around 2%?

Jerry Dent

It was actually less than 2%.

Tony Davis - Stifel Nicolaus

Okay. Can you update us on that number?

Jerry Dent

It's currently just over 3%.

Tony Davis - Stifel Nicolaus

Okay. And since you have been there, what has been the highest you recall?

Jerry Dent

14.96%.

Tony Davis - Stifel Nicolaus

When was that Jerry?

Harris Simmons

Maybe it’s a pain.

Jerry Dent

That was March of ‘89.

Tony Davis - Stifel Nicolaus

Okay. Thank you very much.

Operator

The next question comes from the line of Manuel Ramirez with KBW. Please proceed sir.

Harris Simmons

Hi, Manny.

Manuel Ramirez - KBW

Hi, good afternoon. Thank you for your kind heart, as always. Kind of, conceptually I am trying to get a sense of how you are looking and assessing the strength of portfolio at this point based on your experience and I guess specifically referring to Jerry with the last down cycle 15-16 years ago. How would you try to stay ahead of the market as opposed to behind the market, and I know it’s hard to do that from an accounting standpoint, but obviously there is a lot of judgment involved. And then the second question along this line for Doyle was, what portion of your provision this quarter was related specifically to the increase in non-accruals versus, I assume qualitatively, higher loss factors on the remaining portfolio that’s performing? Thanks.

Jerry Dent

I see you are associating quite a bit different position going into this than they do back in the late 80s, early 90s. Our processes are able give us much better information with respect to what’s happening with our credits. Our procedures are just so much better improved that we -- I think we can see faster what’s really happening with those particular credits, and the culture that we have tried to establish is when we see a problem coming in, let’s call it and I think that’s happening more today than it happened at this stage in a cycle, 15 plus years ago. So, when I look at this, I think we're on it much faster. We are going to be able to deal with it lot better, and I think that’s probably what's showing up this past quarter.

Manuel Ramirez - KBW

Is it the case, and I don't want to put words into your mouth, but it does seem like a lot changed in a month. I know you are incrementally more cautious on what you are seeing in the market, but it maybe between early September and mid-October, we are talking here today based on the conversations, I think a lot more concern on residential construction. If the processes are better, is that the case that the market is changing faster?

Harris Simmons

Let me ask, let me take a stab at that by saying that I think one of the things that we have been really trying to do is, we really are trying to burrow into at a very granular level, particularly the residential exposure we have, construction A&D, and in particular in some of these markets that we think are going to be harder hit. And that's in recognition of the fact that we saw that this whole sub-prime prices, I mean, it started to kind of percolate back in about February and in middle of August, sort of the roof blew off the house and you suddenly saw scores of mortgage companies, for example fold up tent, file chapter 11. And I think one of the things that we believe, we are trying to be in a spirited candle wish, we're saying and I believe that you have this that something that we haven't seen in a cycle before is the withdrawal of a lot of capacity and machinery, if you will, for repackaging mortgage debt and providing credit to both the lower end of the spectrum and on the higher end it's become more expensive because it's more of its coming on the bank balance sheet. And so to the extent that residential real estate is fundamentally driven by the availability of financing for buyers, which is certainly true. I think you have to be more cautious about this cycle and that is what we are trying to do.

And the other thing I would say is that as we look at our own customers, we are looking at their numbers but the impairment testing that they are doing and particularly for the larger builders, as they look at their own communities they are building out. They are going to have to re-look at that every quarter and its not like you have a latitude to take up sort of a big bath kind of approach to these things you its -- it could go on for a while, as Doyle said earlier I don't think its going to be -- you are going to see the same level of provisions that you saw in this quarter. But I don't think either that this is sort of a one-time event then it all goes away in a quarter. I think that we are going to continue to see some strain in the sector for while.

Manuel Ramirez - KBW

Okay. Thanks and then the division if we can parse provision between what's specific to the non-accruals and then everything else?

Doyle Arnold

Well its non-accruals themselves don't drive, it's really the provision, its really our internal classification in the loan volumes in our process classification, which mostly drives a formula reserve but with some cases we'll look at it and come off with a specific reserve. That's the bulk of it. Clearly, hopefully and that's why it's true, most of the $1 billion loan growth are not classified loans. They are good quality loans so they attract some, but relatively modest reserve and so the bulk of the increase was due to changes in internal classifications of loans.

As a result of those re-grading some of those loans got put on non-accrual. There is really the classification. Within that range I think our sentiment is that we certainly won't be dropping lower in the range. We are, I'll just say above the midpoint of that range and I think to the extent we apply judgment to what comes out of all the quantitative stuff that’s leaning out toward a little more conservatives of these days.

Manuel Ramirez - KBW

Okay. And finally one last thing to Harris probably, have you thought through kind of a worse case scenario for what the lost content of your entire residential construction work in these three markets might be?

Harris Simmons

Well we do some stress testing I said. Yeah, I mean we do model through what we think, higher level of defaults and charge offs. It might look like and I think one of the things that we have been trying to point out is that the severity of the ultimate loss is mitigated hugely by the what we believe is better structure and is coming into this cycle, in terms of more specifically in terms of equity and deals. I think its one of the reason you are seeing at least so far at this stage. We are not seeing a whole lot of lost content even though we are showing some loss. Some of that's -- there is a possibility of recovery down the road. So, I guess it would surprise me if we saw the same kind of experience that we had, talking going back to Jerry’s point about 1989 and a couple of years preceding it.

Doyle Arnold

None of our stress testing shows us getting anywhere close to that, where Jerry entered the picture.

Manuel Ramirez - KBW

Great. Well thank you so much for your time.

Doyle Arnold

Yup.

Operator

Your next question comes from the line of Eric Wasserstrom with UBS. Please proceed.

Doyle Arnold

Hello Eric.

Eric Wasserstrom - UBS

Hi. How are you?

Doyle Arnold

Okay.

Eric Wasserstrom - UBS

Just a couple of points of clarification please, and I know that this is all on the same topic. But it's just a little unclear to me given that the drivers that you have spoken about in terms what's compelling the MPA's, are basically unchanged from period to period from here. Why wouldn’t that just a build in MPA’s, that’s just as big as the one we have seen in the past quarter? In other words like the land values are still stressed, right they are not less stressed than they were a few months ago?

Harris Simmons

Well I think, we said, we expect we would see higher MPA’s in the first quarter. I think Doyle suggested that, seeing the same kind of rate of increase. We don’t think it's likely.

Eric Wasserstrom - UBS

Yes, I guess that’s what I am trying to get to why is that?

Doyle Arnold

Why are they not going to double again? I guess I am not sure why they would. I mean that would imply, I guess an escalating set of problems in no ability to workout of them. And now I guess we don’t see that at this point and we don’t. We do see continuing growth in problems, but not at the same percentage rate, I mean they won’t double and then double again, knock on wood I guess. So, I am kind of at loss as to why you might think that they would from here.

The other thing, as Harry commented was that I would make is that, particularly in Arizona but also in California. I think I have said this probably before, as the summer wore on, it became clearer that the selling season for the builders was not penning out very well at all.

And this did prompt us to, kind of starting in July and then August, start going systematically back through these portfolios and saying, okay, all these guys are current and paying and in many cases not even criticized or classified loans at this point. But, clearly if the sales drag out their ability to generate new cash to service debt becomes more strained. So, even if they are making cash payments today, what is their ability to continue to do that in the face of a longer cycle?

That did prompt quite a lot of re-gradings, that sort of change in view prompted quite a lot of re-gradings of credit in July and particularly August and September, as those reviews were completed and the associated reappraisals came in.

So, there maybe some element of catch-up or getting ahead of the game or how you, but a one time reassessment of the environment and applying that environmental reassessment to the credits in the portfolio, and seeing what fell out. So, I think you are seeing some of that reflected in rather significant run up in provision and non-accruals this quarter.

Eric Wasserstrom - UBS

Okay. So, to the extend that the environment would get worse, you would say that, that will bring on some incremental credit pressure.

Doyle Arnold

Even if he's says or saying this is probably going to be incremental pressure on non-accruals and so forth that I am not sure that its going to take -- I don’t in fact at this point we don’t think it is going to take the same level of provisions. Certainly, more than we have been seeing over the last few years, which is abnormally low, but at least in the next quarter you may not be and probably won’t be as high as this quarter.

Eric Wasserstrom - UBS

Great. Thanks very much.

Harris Simmons

Yes.

Operator

The next question comes from line of Ken Usdin with Banc of America Securities.

Please proceed.

Ken Usdin - Banc of America Securities

Thanks, good afternoon.

Harris Simmons

Hi, Ken.

Ken Usdin - Banc of America Securities

One more question on just the loss rates, I guess just connected to comments about the prior cycle, you may not go back to 1%, 2% loss rates, but certainly from 19 basis points it seems like we could still be at the beginning parts of deterioration here. So, I am just wondering if you have any idea -- kind of this time around, do you have any guide as for what you think either, normalize your peak losses or looking like over the next year or so as far as charge-offs are concerned?

Doyle Arnold

Probably not as precisely as you would like it, it’s just hard to have that kind of crystal ball. We do think they will be up somewhat from, in fourth quarter over third quarter. And they would drift up from there. We don’t see the same anything like the same, I mean for one thing the last real-estate that cleared [debacle] that Jerry talked about. I mean, Harris has alluded the industry and this company went into that cycle with much higher LTVs, at the starting point then we did today. That part of the cycle was not just residential, it was everything. It was commercial, office, strip malls, residential, everything went bad. So far at least, this is largely with some exceptions, as Harris noted, confined to residential sectors as the construction development industry. So may get up to those kind of the levels we had a few years ago, but we don't see anything yet at least to drive this fact, abnormally high levels of loss.

Ken Usdin - Banc of America Securities

Okay. My second question just relates to the recent loan growth you're putting on. I guess, if you could just give me some color on where the new growth is coming in especially, in theory? Is any of it related to residential builders and if you are in fact adding new loans residential builders, can you give us some color on the characteristics of that given that what is deteriorating?

Doyle Arnold

I think, quite I would start by saying you can't. Yes, some of it is residential. It's not like housing stocks have gone to zero or that you don't have here and there a new house being built. You have some custom home construction. You have some developers that actually have smaller infield projects that are selling well here and there, and it's a portfolio that turns. Generally speaking residential construction is going to be shrinking. But, in that shrink -- you have to almost talk about net growth, and net-net I don't think you are seeing any new record. We are continuing to extend credit to creditworthy builders.

Jerry Dent

And you have stock markets as well?

Doyle Arnold

Yeah. There is more residential construction and development growth in Texas, than and clearly there is anywhere else and a lot of that -- lot of it is significant. I don’t have the breakdown, but a significant part of the growth you are seeing is in commercial construction and development as opposed to residential construction and development.

Ken Usdin - Banc of America Securities

Okay. And I will ask a question on capital. I know you slowed down the buyback this quarter because of the concerns about Lockhart's and bringing assets on the balance sheet, but did you plan to get back in the market to kind of more of the rates you had been doing previously and have you started that already or are you still kind of conscious because of Lockhart or your balance sheet size or whatever the constraint might be?

Doyle Arnold

I think the best outlook is we'll probably do little if any buybacks this quarter. Maybe if things continue to totally settle down late in the quarter, we may come back, we do have some remaining authority. I think as long as we are in an era of, kind of a dichotomy between very high loan growth and earnings under some pressure, the level of buybacks is not likely to get back to the 100 million or 125 million a quarter level, but may be more like half that next year is a best guess projection and may be not very much at all this particular quarter.

Ken Usdin - Banc of America Securities

Okay. Thank you

Operator

The next question comes from the line of Todd Hagerman with Credit Suisse. Please proceed.

Todd Hagerman - Credit Suisse

Good afternoon everybody.

Doyle Arnold

Hi Todd.

Todd Hagerman - Credit Suisse

Just a couple of quick questions; just if I understand correctly, Doyle the systematic review that you referenced before, has that been completed? Have you touched each part of the portfolio? Is there still more work to be done in that regard?

Harris Simmons

Well, listen, I'd say that it's an ongoing process. Jerry, and you may want to comment as well, but we have, as Doyle mentioned, specifically we are focused very carefully on residential, construction portfolio and most notably in California and Arizona because those are the two largest markets in which we have exposure now and the Nevada market is very weak, but we have a reasonably little exposure there and we are looking at that as well but its not likely to present the same kind of risk to us. And I think we have been through that but it's something that continues, because it's not a one-time event. We are continuing to watch in real time what’s happening to these larger costumers. Jerry anything you'd add to that?

Jerry Dent

The emphasis that I would like to place on your comment Harris is the fact that the review that Doyle was referring to is not a one-time event. It's an ongoing quarterly event that we do it as a deep dive so to speak into our large developers, both commercials as well as residential. And for example in the Arizona situation spend sometimes as much as two days with senior management going through their portfolio, loan-by-loan for the larger builders and basically assessing how do we want to handle this builder going forward. Do we want to cut back? Do we want to exit the relationship or do we want to build on the relationship? And in order to make that kind of a decision, we require the credit officers to go through a pretty extensive analysis to give us the information upon which those decisions could be made.

Harris Simmons

Specifically Todd though, to the extent that your question was, have we much to do half of the markets with [join this view] and we still have half of them to go and so is there another big shoe yet to drop? I think the answer that question would be no, if that's really what you were really driving at.

Doyle Arnold

And I would agree with that.

Todd Hagerman - Credit Suisse

Okay that’s helpful and then perhaps if you could share with us, have you recently had any kind of a regulatory exam?

Doyle Arnold

We always have regulatory exams. Every kind imaginable. But do you want to talk specifics?

Todd Hagerman - Credit Suisse

When was the last targeted exam on your commercial real estate?

Harris Simmons

Well we've just finished up an exam in California. We've just finished up one in Colorado. We just finished up now lets see, Jerry I am trying to think here.

Jerry Dent

Actually Harris, the regulators are going through each of the banks, and I think the only bank that they have not have been in within the last six months is Amegy. And in this case --

Arnold Doyle

No, I am just thinking about exit reviews or completed examination reports that I have seen kind of literally in the last two weeks, so it is an on going process with the regulators as well.

Todd Hagerman - Credit Suisse

So you haven’t received the Arizona report yet?

Arnold Doyle

Jerry, do you recall when last the OCC was in there?

Harris Simmons

It's been in there in the last six months I believe.

Jerry Dent

Yes I have.

Todd Hagerman - Credit Suisse

Okay. And then just quickly, I mean just in terms of the non-performers that you recognize this quarter, can you give us a sense if how much of this was originated by Zions? Was any of this part of any purchase portfolios by the way of either bank acquisition or otherwise? Or is any of it a portion related to any kind of participation either local or national?

Harris Simmons

It really comes out of our core business pretty much. I think this isn't out of any kind of acquired portfolio and it's not an acquired portfolio, it's not a syndicated portfolio, it's probably possible that there are one or two club deals in there, I don’t know that specifically.

Jerry Dent

There were a couple.

Harris Simmons

Okay. But it is our business.

Todd Hagerman - Credit Suisse

Okay. Pretty much going out alone.

Harris Simmons

Well or with one or at most two other banks out in the West where we split deals, kind of each of us taking a major piece of it.

Todd Hagerman - Credit Suisse

Yeah.

Harris Simmons

As opposed to a syndicate, where somebody takes the lead, takes all the juice and passes out the crumbs to everybody else. This is where we are actively involved in originating and underwriting the deal.

Jerry Dent

Most of these customers are customers that are in our market, we are dealing with them and at times it takes two or three banks joining together to handle the project. So, we don't get too much exposure to any one bank.

Todd Hagerman - Credit Suisse

Terrific. Thanks for the comments.

Operator

Your next question comes from the line of Heather Wolf with Merrill Lynch. Please proceed.

Heather Wolf - Merrill Lynch

Hi, there. Just one quick question; Are you hearing anything from your regulators in terms of where they would like to be or there's always a percentage of loan through to are they starting to encourage you to the build that further than you already have?

Doyle Arnold

No. No to both.

Heather Wolf - Merrill Lynch

Okay, good. Thank you.

Operator

And your final question comes from the line of Joe Morford with RBC Capital Markets. Please proceed.

Joe Morford - RBC Capital Markets

Thanks. Good afternoon and pretty much everything has been asked. I think the one last thing is, just end to period based investment portfolio was relatively flat this quarter. Have you bet down with the run-up, or there is still some room for that to come down and if so, at what pace?

Doyle Arnold

Yeah, that will continue to shrink. I mean we are not actually buying securities as you might guess with the kind of loan growth that we have. So, we haven't actually been selling any securities, but as they pay down or they mature we have not been replacing them.

Joe Morford - RBC Capital Markets

Okay.

Doyle Arnold

I think the only line there that may move materially is the money market, CP line which we hope will come back down to under $100 million this quarter as we are able to replace in commercial papers from Lockhart that we bought. So that line could shrink several $100 million.

Joe Morford - RBC Capital Markets

Okay. That helps. Thanks Doyle.

Doyle Arnold

You bet.

Operator

At this time there are no further questions. I would now like to turn the call back over to Mr. Doyle Arnold for closing remarks.

Doyle Arnold

Well, thank you all for your careful attention to what clearly has been quarter of more than usual interest. Hopefully, we've clarified things for you. We think that we were cautious about some things and optimistic about some others going forward, just to reiterate we think loan growth is likely to remain pretty strong in the coming quarter as the costs are likely not to come down as fast in response to the rate cut due to external market conditions regardless of what the market growth looks like. There are some reasons to believe that the attrition in the DD&A may attenuate as earnings credit rates come down and so forth.

Nonetheless, you are probably at a better pressure on the margin again this quarter, but again, there may be some picked up from a lower provision this quarter. And some of the purely financial market stress related impacts, while it may not totally disappear, this quarter should begin to attenuate going forward.

So, with that, again I thank you all for your time and attention, and we will sign off and look forward to talking to you again at year-end.

Operator

Thank you for your participation in today’s conference. This concludes this presentation. You may now disconnect. Good day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Zions Bancorp Q3 2007 Earnings Call Transcript
This Transcript
All Transcripts