Zions To Resubmit Capital Plan; Zions' DFAST Results Were Worse Than Projected

(RTTNews) - Zions Bancorporation (ZION) announced that, based upon an initial review of the Federal Reserve's publication, Zions' DFAST results were worse than Zions had projected. As a result of the Federal Reserve's stress tests, Zions will resubmit its capital plan to the Federal Reserve.

The company said it fell below the main capital threshold in the Federal Reserve's stress test because of greater real estate losses and risk-weighted assets, and lower revenue estimates.

The central bank determined the bank had significantly higher commercial real estate losses and Significantly greater risk-weighted assets. Regulators also found that the bank would have lower pretax, pre-provision net revenue under economic distress, according to the statement.

Zions also noted that its original submission to the Federal Reserve occurred prior to the sale of certain collateralized debt obligation securities in January and February 2014, which sales also resulted in a substantial reduction in risk.