
24.	PARENT COMPANY FINANCIAL INFORMATION

CONDENSED BALANCE SHEETS



	December 31,
(In thousands)	2013			2012
ASSETS
Cash and due from banks	$	902,697		$	2,001
Interest-bearing deposits	72			75,808
Security resell agreements	—			575,000
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value $31,422 and $22,112)	17,359			22,679
Available-for-sale, at fair value	675,895			461,665
Loans, net of allowance for loan losses of $0 and $23	—			1,277
Other noninterest-bearing investments	37,154			50,799
Investments in subsidiaries:
Commercial banks and bank holding company	6,700,315			6,668,881
Other operating companies	31,535			36,516
Nonoperating – ZMFU II, Inc.¹	44,511			43,012
Other assets	278,392			311,093
	$	8,687,930		$	8,248,731

LIABILITIES AND SHAREHOLDERS’ EQUITY
Other liabilities	$	200,729		$	106,159
Short-term borrowings:
Due to others	—			4,951
Subordinated debt to affiliated trusts	15,464			309,278
Long-term debt:
Due to affiliates	17			—
Due to others	2,007,157			1,776,274
Total liabilities	2,223,367			2,196,662
Shareholders’ equity:
Preferred stock	1,003,970			1,128,302
Common stock	4,179,024			4,166,109
Retained earnings	1,473,670			1,203,815
Accumulated other comprehensive loss	(192,101		)	(446,157		)
Total shareholders’ equity	6,464,563			6,052,069
	$	8,687,930		$	8,248,731


¹	ZMFU II, Inc. is a wholly-owned nonoperating subsidiary whose sole purpose is to hold a portfolio of municipal bonds, loans and leases.

CONDENSED STATEMENTS OF INCOME



	Year Ended December 31,
(In thousands)	2013			2012			2011
Interest income:
Commercial bank subsidiaries	$	757		$	836		$	2,519
Other subsidiaries and affiliates	105			386			63
Loans and securities	17,764			18,993			13,640
Total interest income	18,626			20,215			16,222
Interest expense:
Affiliated trusts	8,483			24,053			24,027
Other borrowed funds	171,304			195,195			274,843
Total interest expense	179,787			219,248			298,870
Net interest loss	(161,161		)	(199,033		)	(282,648		)
Provision for loan losses	(23		)	(10		)	(38		)
Net interest loss after provision for loan losses	(161,138		)	(199,023		)	(282,610		)

Other income:
Dividends from consolidated subsidiaries:
Commercial banks and bank holding company	421,406			246,606			71,350
Other operating companies	200			5,440			14,151
Nonoperating – ZMFU II, Inc.	—			50,000			—
Equity and fixed income securities gains (losses), net	(7,332		)	86			426
Net impairment losses on investment securities	(95,637		)	(74,153		)	(26,810		)
Other income (loss)	(8,397		)	(6,562		)	4,203
	310,240			221,417			63,320
Expenses:
Salaries and employee benefits	26,014			20,507			19,033
Debt extinguishment cost	120,192			—			—
Other operating expenses	1,436			395			4,176
	147,642			20,902			23,209
Income (loss) before income taxes and undistributed income/loss of consolidated subsidiaries	1,460			1,492			(242,499		)
Income tax benefit	(133,798		)	(108,541		)	(104,395		)
Income (loss) before equity in undistributed income/loss of consolidated subsidiaries	135,258			110,033			(138,104		)
Equity in undistributed income (loss) of consolidated subsidiaries:
Commercial banks and bank holding company	132,906			304,559			488,806
Other operating companies	(4,887		)	(15,561		)	(27,687		)
Nonoperating – ZMFU II, Inc.	514			(49,515		)	789
Net income	263,791			349,516			323,804
Preferred stock dividends	(95,512		)	(170,885		)	(170,414		)
Preferred stock redemption	125,700			—			—
Net earnings loss applicable to common shareholders	$	293,979		$	178,631		$	153,390

CONDENSED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
(In thousands)	2013			2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	263,791		$	349,516		$	323,804
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Undistributed net income of consolidated subsidiaries	(128,533		)	(239,483		)	(461,908		)
Net impairment losses on investment securities	95,637			74,153			26,810
Debt Extinguishment cost	120,192			—			—
Other, net	69,098			4,376			27,505
Net cash provided by (used in) operating activities	420,185			188,562			(83,789		)

CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in money market investments	650,736			305,668			(408,811		)
Collection of advances to subsidiaries	10,000			23,190			6,425
Advances to subsidiaries	(10,000		)	(23,000		)	(6,250		)
Proceeds from sales and maturities of investment securities	27,916			5,433			1,259,262
Purchases of investment securities	(4,858		)	(3,980		)	(575,887		)
Decrease of investment in subsidiaries	175,000			764,290			113,834
Other, net	10,642			3,814			9,642
Net cash provided by investing activities	859,436			1,075,415			398,215

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in short-term funds borrowed	(3,368		)	(110,995		)	(165,500		)
Proceeds from issuance of long-term debt	646,408			757,610			101,821
Repayments of long-term debt	(835,031		)	(372,312		)	(117,975		)
Debt extinguishment cost paid	(45,812		)	—			—
Proceeds from issuance of preferred stock	784,318			141,342			—
Proceeds from issuance of common stock	9,825			1,898			25,686
Cash paid for preferred stock redemptions	(799,468		)	(1,542,500		)	—
Dividends paid on preferred stock	(95,512		)	(126,189		)	(148,774		)
Dividends paid on common stock	(24,148		)	(7,392		)	(7,361		)
Other, net	(16,137		)	(3,449		)	(4,160		)
Net cash used in financing activities	(378,925		)	(1,261,987		)	(316,263		)
Net increase (decrease) in cash and due from banks	900,696			1,990			(1,837		)
Cash and due from banks at beginning of year	2,001			11			1,848
Cash and due from banks at end of year	$	902,697		$	2,001		$	11

The Parent paid interest of $125.9 million in 2013, $124.1 million in 2012, and $126.7 million in 2011.