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.

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