C), which set aside $3.6 billion for loan loss reserves while net loan charge-offs totaled $6.5 billion, thus "releasing" $2.6 billion in reserves and boosting operating earnings by that amount.
Bank of America ( BAC) released $1.45 billion in loan loss reserves during the second quarter, and JPMorgan Chase ( JPM) released $2.8 billion in loan loss reserves. Zions CEO Harris Simmons said the lender was "encouraged with the decline in nonperforming lending-related assets, as well as an improvement in other problem credits; notably, more than 80% of the improvement in nonaccrual loans occurred in construction and term commercial real estate." He also touted the company's capital ratios, as being at "record high levels" after the company raised $615 million in Tier 1 regulatory capital during the second quarter, through common and preferred stock offerings. Zions's Tier 1 leverage ratio was 11.91% as of June 30, and its total risk-based capital ratio was 12.64%, well above the 5% and 10% required for most banks to be considered well capitalized. Back in May, Harris said the company might consider repaying TARP during the first half of 2011, according to SNL Financial. Shares of Zions closed Monday at $21.42, down 1.2% for the session. Year-to-date, the stock is up almost 70%, although it's well off itss 52-week high of $30.29 set on April 26. -- Written by Philip van Doorn in Jupiter, Fla.