Zions Bancorporation (ZION) in Salt Lake City has warned investors that it is facing an impairment charge of up to $100 million in connection with its investments in smaller banks.

The investments in question are trust-preferred securities on which issuing banks have deferred payments to investors like Zions in an effort to preserve capital but are nearing the end of their deferral periods. The $53.1 billion-asset multi-bank holding company disclosed in a brief Securities and Exchange Commission filing late Tuesday that, following discussions with federal regulators, it is "reviewing its assumptions" on the value of those securities.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.