Zions Bancorp (ZION) Plans 33% Dividend Hike, Increased Stock Repurchases

The Board of Governors of the Federal Reserve System has notified Zions Bancorporation (NASDAQ: ZION) that the Federal Reserve does not object to Zions Bancorporation's board-approved 2016 capital plan, as submitted to the Federal Reserve on April 5, 2016.

Zions' capital plan for the period spanning July 1, 2016 through June 30, 2017 include the following capital actions:

• The increase of the common dividend to $0.08 per share per quarter or approximately $65 million in total common dividends over the four quarter period (an increase from the current rate of $0.06 per share per quarter)
• Up to $180 million of common stock redemption
• Up to $144 million of preferred equity redemption

Capital actions are subject to final approval by Zions Bancorporation's board of directors, which may be influenced by, among other things, actual earnings performance and prevailing economic conditions. Such capital actions are expected to reduce fixed charges and improve Zions' return on equity.

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