Zions Bancorporation (ZION) in Salt Lake City said Thursday that its first-quarter earnings will be reduced by roughly 11 cents per share as a result of its repayment of $700 million to the Troubled Asset Relief Program.

Based on the results of a recent stress test, the Federal Reserve Board earlier this month gave the $52 billion-asset Zions the go-ahead to repay the $1.4 billion in Tarp funds. Zions repaid half the amount this week and intends to pay the remaining $700 million later this year. The company has said it would not need to issue new common stock to exit Tarp.

In a Securities and Exchange Commission filing, Zions said that accounting adjustments related to the repayment would be recorded as reduction to earnings. Zions earned 24 cents per diluted share in last year's fourth quarter and analysts polled by Thomson Reuters had estimated that it would earn 28 cents per share this quarter.

Zions' shares were trading at $21.35 Thursday, down 2% from Wednesday's closing price.

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