SALT LAKE CITY, March 14, 2013 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) ("Zions" or "the Company) today received the results of the Board of Governors of the Federal Reserve System's (FRB) review of Zions' capital plan under the FRB's 2013 Capital Plan Review. While the FRB objected to certain proposed capital actions, it did not object to key capital actions relating to the reduction of the cost and quantity of Zions' non-common capital. Specifically, among other things, the Federal Reserve did not object to the redemption by Zions of its Series B trust preferred securities, the issuance of up to $600 million in additional perpetual preferred stock (which $600 million includes the $171 million of Series G preferred shares, issued in February 2013), the redemption by Zions of $600 million of Series C perpetual preferred shares and, certain matched issuances and redemptions of up to $250 million of subordinated debt, as well as certain issuances and redemptions of senior debt. Under the FRB's rules, Zions will be required to resubmit its capital plan to the FRB.
As part of the 2013 capital plan, Zions had sought the redemption of the full $798 million amount of Series C shares. Zions may, in conjunction with its resubmitted plan or supplementally, request the ability to issue an additional $200 million of perpetual preferred stock (in addition to the $600 million described above) enabling the full redemption of the Series C shares.
No assurances or guarantees can be made regarding such actions.
As Zions has consistently reported, the Company's main focus for 2013 will be on rationalizing and reducing the cost of Zions' non-common equity and term debt financing.