Zions Inches Closer to Exiting Tarp

Zions Bancorp. (ZION) is hopeful that it will exit the Troubled Asset Relief Program in late September or early in the fourth quarter.

Doyle Arnold, Zions' chief financial officer, told investors and analysts at a conference in New York Wednesday that the company had met the criteria it had outlined to the Federal Reserve for redeeming the remaining $700 million of preferred shares still owned by the Treasury Department. These moves included issuing $600 million in senior debt.

The Salt Lake City company submitted in mid-August a mid-year capital plan to regulators and was now waiting to hear back. Regulators require a minimum of 30 days to review the proposal but the process could take longer, he said.

"I have every reason to believe that it will be approved," Arnold said at the investor conference hosted by Barclays.

The $52.8 billion-asset company repaid $700 million in Tarp funds in March and had said it would repay the remaining amount in the second half of this year.

After the Treasury Department sold its preferred shares in M&T Bank Corp. (MTB) in August, Zions is now the largest bank by assets still in the program and has the third largest amount still outstanding.

Synovus Financial (SNV) in Columbus, Ga., owes $967.9 million and Popular (BPOP) in Puerto Rico needs to repay $935 million, according to the Treasury.