-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hb73k2BTCh2FqZGWKBCjEQCnBl8wrrURnha25ga3H836h+xZOq5Dn2N/zVimgoE/ 7o9L3VI9jafwOVyYJ2TS3g== 0000109380-00-000010.txt : 20000218 0000109380-00-000010.hdr.sgml : 20000218 ACCESSION NUMBER: 0000109380-00-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000207 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZIONS BANCORPORATION /UT/ CENTRAL INDEX KEY: 0000109380 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 870227400 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-02610 FILM NUMBER: 548119 BUSINESS ADDRESS: STREET 1: ONE SOUTH MAIN STREET STREET 2: SUITE 1380 CITY: SALT LAKE CITY STATE: UT ZIP: 84111 BUSINESS PHONE: 8015244787 MAIL ADDRESS: STREET 1: ONE SOUTH MAIN STREET STREET 2: SUITE 1380 CITY: SALT LAKE CITY STATE: UT ZIP: 84111 FORMER COMPANY: FORMER CONFORMED NAME: ZIONS UTAH BANCORPORATION DATE OF NAME CHANGE: 19870615 FORMER COMPANY: FORMER CONFORMED NAME: ZIONS FIRST NATIONAL INVESTMENT CO DATE OF NAME CHANGE: 19660921 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 --------------------- Date of Report (Date of earliest event reported) February 17, 2000 (February 7, 2000) Zions Bancorporation - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Utah 0-2610 87-0227400 - ------------------- --------------------------------- ------------------------ (State of (Commission File Number) (IRS Employer incorporation) Identification No.) One South Main, Suite 1380, Salt Lake City, Utah 84111 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (801) 524-4787 ------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) 1 Items 1-4. Not Applicable. Item 5. Other Events. A copy of the press release issued by the Registrant on February 7, 2000 announcing its fourth quarter earnings is attached hereto as Exhibit 99.1. Item 6. Resignations of Registrant's Directors. Not Applicable. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Not Applicable. (b) Not Applicable. (c) Exhibits The following exhibits are filed with this Current Report on Form 8-K: Exhibit Number Description - ------ ----------- 99.1 Press release, dated February 7, 2000 Item 8. Change in Fiscal Year. Not Applicable. Item 9. Sales of Equity Securities Pursuant to Regulation S. Not Applicable. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ZIONS BANCORPORATION By: /s/ Dale M. Gibbons ----------------------------- Name: Dale M. Gibbons Title: Executive Vice President and Chief Financial Officer Date: February 17, 2000 3 EX-99.1 2 PRESS RELEASE DATED 2/7/2000 ***FOR IMMEDIATE RELEASE*** FOR: ZIONS BANCORPORATION One South Main, Suite 1380 Contact: Dale Gibbons Salt Lake City, Utah Tel: (801) 524-4787 Harris H. Simmons February 7, 2000 President/Chief Executive Officer ZIONS BANCORPORATION REPORTS 22.2% INCREASE IN OPERATING CASH EARNINGS PER SHARE Salt Lake City, Utah, February 7, 2000 - Zions Bancorporation (Nasdaq: ZION) today reported net income before merger-related charges of $58.2 million or $0.67 per diluted share for the fourth quarter of 1999. After merger-related charges of $15.7 million net of tax or $0.18 per share, the Company reported net income of $42.5 million or $0.49 per diluted share. Return on average equity was 9.87% for the quarter and return on average assets was .80%. Operating cash earnings for the quarter were $66.4 million or $0.77 per diluted share, an increase of 24.8% and 22.2%, respectively, over the $53.2 million or $0.63 per diluted share earned in the fourth quarter of 1998. Historical performance data have been restated to reflect the merger with Pioneer Bancorporation in the fourth quarter and to account for a number of business combinations conducted in 1997 and 1998 as purchases instead of poolings of interests. The Company and its independent auditors, KPMG LLP believed and continue to believe that there is substantial support for its accounting for these business combinations as poolings of interests. However, in light of the Securities and Exchange Commission Staff's views that certain share repurchases undertaken by the Company violated Staff Accounting Bulletin 96, the Company has decided to restate its financial statements for a number of these business combinations. The change in the accounting method for these business combinations reduced net income by $0.06 during the quarter. Operating cash ROE for the fourth quarter of 1999 was 25.5% and cash ROA was 1.29%. The Company's operating cash efficiency ratio was 58.1% for the quarter compared to 59.5% for the third quarter. Operating cash earnings are earnings before the amortization of goodwill and core deposit intangible assets and merger-related charges. Operating cash performance ratios are determined as if goodwill, core deposit intangible assets and merger-related charges have not been recognized in the financial statements. 1 For 1999, operating cash earnings were $243.8 million or $2.84 per diluted share, an increase of 25.4% and 19.8%, respectively, over the restated $194.4 million or $2.37 per share earned last year. For 1999, cash ROE was 26.9% and cash ROA was 1.27%. Net income for the year was $194.1 million or $2.26 per diluted share, including $18.5 million or $0.22 per diluted share in after tax merger-related charges. For the year, ROE was 12.4% and ROA was 0.97%. "Nineteen ninety-nine capped a decade of impressive performance for our Company, with compounded earnings per share growth in excess of 20 percent during the '90's," remarked Harris Simmons, president and chief executive officer of Zions. "Although the delay in closing our merger with First Security has been frustrating, as we have mapped out our integration plan our enthusiasm has increased for the value creation opportunities that this business combination will have for our shareholders. We expect to file our restated earnings in accordance with the SEC interpretation within a week and schedule the shareholder vote in March. The transaction should close immediately thereafter." For the fourth quarter of 1999, average on-balance-sheet and sold and serviced loans (excluding long-term residential first mortgages) increased 14.8% to $13.73 billion and average deposits increased 2.5% to $14.32 billion over the balances reported one year ago. For the quarter, taxable-equivalent net interest income increased 4.81% to $195.9 million, noninterest income was $74.5 million, an increase of 22.0%, and noninterest expense, excluding goodwill and core deposit amortization and merger-related charges, was down 3.0% to $157.2 million. The ratio of nonperforming assets to total loans and other real estate was 0.58% at December 31, 1999 compared to 0.48% at September 30. For the quarter, net loan and lease losses were $9.0 million or 0.29% of average loans on an annualized basis. For the year, net loan and lease losses were $29.0 million or 0.25% of average loans. At $204 million at December 31, 1999, the allowance for loan losses was approximately three times nonperforming loans and 1.60% of total loans. In order to secure regulatory approval for the Company's merger with First Security Corporation, in January the Company and First Security agreed to sell 68 branch offices with approximately $2.1 billion in deposits and $0.7 billion in loans to another financial institution. This sale is anticipated to close in the second quarter at which time the Company expects to report a gain of approximately 9.8% of the deposits transferred. 2 Under local management teams, Zions operates over 300 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah and Washington. It also offers a comprehensive array of investment, mortgage, insurance, and electronic commerce services and has a network of loan origination offices for small businesses nationwide. Investor information and product offerings can be accessed at and www.zionsbank.com. Information regarding digital certificate services is available at www.digsigtrust.com. Forward Looking Information This news release contains statements regarding the timing of the close and the projected performance of Zions and First Security assuming the merger of these companies is completed. These statements constitute forward looking information within the meaning of the Private Securities Litigation Reform Act. Actual results of achievements may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the timing of closing the proposed merger being delayed or such merger activities being prohibited; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally in areas in which the banks conduct their operations being less favorable than expected; the cost and effort required to integrate the companies being more difficult than expected or the required divestitures of branches or deposits being greater than expected; expected cost savings from the proposed merger not being fully realized or realized within the expected time frame; and legislation or regulatory changes which adversely affect the ability of the combined company to conduct, or the accounting for, business combinations and new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward looking statements included herein to reflect future events or developments. 3 ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited)
Three Months Ended Twelve Months Ended December 31, December 31, (In thousands, except per ------------------------------ -------------------------------- share and ratio data) 1999 1998 % Change 1999 1998 % Change -------- -------- -------- -------- -------- -------- EARNINGS Taxable-equivalent net interest income .. $195,930 $186,939 4.81 % $757,674 $583,901 29.76% Net interest income ..................... 191,514 184,445 3.83 % 741,489 573,942 29.19% Noninterest income ...................... 74,467 61,056 21.97 % 266,545 210,197 26.81% Provision for loan losses ............... 4,555 3,635 25.31 % 17,956 14,034 27.95% Noninterest expense ..................... 190,038 197,122 3.59)% 681,567 556,700 22.43% Income before income taxes .............. 71,388 44,744 59.55 % 308,511 213,405 44.57% Income taxes ............................ 26,552 14,387 84.56 % 109,498 69,632 57.25% Minority interest ....................... 2,287 420 444.52 % 4,949 420 1,078.33% Net income .............................. 42,549 29,937 42.13 % 194,064 143,353 35.37% PER COMMON SHARE Net income (diluted) .................... 0.49 0.35 40.00 % 2.26 1.75 29.14% Dividends ............................... -- 0.14 -- 0.72 0.54 33.33% Book value .............................. 19.39 17.39 11.50% SELECTED RATIOS Return on average assets ................ 0.80% 0.65% 0.97% 1.00% Return on average common equity ......... 9.87% 8.16% 12.42% 10.98% Efficiency ratio ........................ 70.28% 79.49% 66.55% 70.10% Net interest margin ..................... 4.18% 4.50% 4.31% 4.56% OPERATING CASH EARNINGS* Taxable-equivalent net interest income .. $195,930 $186,939 4.81 % $757,674 $583,901 29.76% Net interest income ..................... 191,514 184,445 3.83 % 741,489 573,942 29.19% Noninterest income ...................... 74,467 61,056 21.97 % 266,545 210,197 26.81% Provision for loan losses ............... 4,555 3,635 25.31 % 17,956 14,034 27.95% Noninterest expense ..................... 157,175 162,046 (3.01)% 617,868 486,931 26.89% Income before income taxes .............. 104,251 79,820 30.61 % 372,210 283,174 31.44% Income taxes ............................ 35,574 26,186 35.85 % 123,461 88,384 39.69% Minority interest ....................... 2,287 420 444.52 % 4,949 420 1,078.33% Net income .............................. 66,390 53,214 24.76 % 243,800 194,370 25.43% PER COMMON SHARE Net income (diluted) .................... 0.77 0.63 22.22 % 2.84 2.37 19.83% Dividends ............................... -- 0.14 -- 0.72 0.54 33.33% Book value .............................. 11.61 9.44 22.99% SELECTED RATIOS Return on average assets ................ 1.29% 1.19% 1.27% 1.41% Return on average common equity ......... 25.53% 27.15% 26.87% 26.56% Efficiency ratio ........................ 58.13% 65.34% 60.33% 61.32% Net interest margin ..................... 4.18% 4.50% 4.31% 4.56%
* Before amortization of goodwill and core deposit intangible assets and merger charges. 4 ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited)
Three Months Ended Twelve Months Ended December 31, December 31, (In thousands, except per ------------------------------------- --------------------------------------- share and ratio data) 1999 1998 % Change 1999 1998 % Change ----------- ----------- ----------- ----------- ----------- ----------- AVERAGE BALANCES Total assets .................................. $21,112,766 $18,382,708 14.85 % $19,912,439 $14,397,115 38.31 % Securities .................................... 4,802,835 4,156,117 15.56 % 4,556,049 3,549,470 28.36 % Net loans and leases .......................... 12,496,479 10,927,875 14.35 % 11,819,094 7,631,511 54.87 % Goodwill and core deposit intangibles ......... 678,822 677,217 0.24 % 655,266 573,064 14.34 % Total deposits ................................ 14,317,431 13,968,660 2.50 % 14,088,114 10,225,022 37.78 % Minority interest ............................. 38,282 35,393 8.16 % 37,355 8,848 322.19 % Shareholders' equity .......................... 1,710,681 1,454,811 17.59 % 1,562,442 1,304,998 19.73 % Weighted average common and common- equivalent shares outstanding ............ 86,535,419 85,075,350 1.72 % 85,694,556 81,918,082 4.61 % AT PERIOD END Total assets .................................. $20,280,900 $18,049,623 12.36 % Securities .................................... 4,437,219 3,996,668 11.02 % Net loans and leases .......................... 12,790,645 11,219,486 14.00 % Sold loans being serviced* .................... 1,252,791 981,784 27.60 % Allowance for loan losses ..................... 204,114 212,557 (3.97)% Goodwill and core deposit intangibles ......... 666,219 663,606 0.39 % Total deposits ................................ 14,061,939 14,220,910 (1.12)% Minority interest ............................. 39,249 34,670 13.21 % Shareholders' equity .......................... 1,659,838 1,452,631 14.26 % Common shares outstanding ..................... 85,592,643 83,554,630 2.44 % Average equity to average assets .............. 8.10% 7.91% 7.85% 9.06% Common dividend payout ........................ -- 36.80% 29.33% 28.40% Nonperforming assets .......................... 74,598 65,155 14.49 % Loans past due 90 days or more ................ 20,939 25,779 (18.77)% Nonperforming assets to net loans and leases, other real estate owned and other nonperforming assets at December 31 ...... 0.58% 0.58%
* Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding long-term first mortgage residential real estate loans. 5 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
December 31, December 31, (In thousands, except share amounts) 1999 1998 ------------ ------------ ASSETS Cash and due from banks ............................................. $ 898,300 $ 922,654 Money market investments: Interest-bearing deposits ...................................... 17,371 30,484 Federal funds sold ............................................. 85,898 246,946 Security resell agreements ..................................... 421,900 382,275 Investment securities: Held to maturity, at cost (approximate market value $3,290,508 and $2,869,162) ..................................... 3,330,444 2,850,756 Available for sale, at market .................................. 778,930 954,057 Trading account, at market...................................... 327,845 191,855 ------------ ------------ 4,437,219 3,996,668 Loans: Loans held for sale ............................................ 204,800 232,253 Loans, leases, and other receivables ........................... 12,648,325 11,037,292 ------------ ------------ 12,853,125 11,269,545 Less: Unearned income and fees, net of related costs ................. 62,480 50,059 Allowance for loan losses ...................................... 204,114 212,557 ------------ ------------ Net Loans ................................................ 12,586,531 11,006,929 Premises and equipment, net ......................................... 287,448 249,896 Goodwill and core deposit intangibles ............................... 666,219 663,606 Other real estate owned ............................................. 8,939 5,270 Other assets ........................................................ 871,075 544,895 ------------ ------------ $ 20,280,900 $ 18,049,623 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing ............................................. $ 3,276,097 $ 3,394,884 Interest-bearing: Savings and money market ................................... 7,660,786 6,544,607 Time: Under $100,000 ......................................... 1,836,645 2,439,696 Over $100,000 .......................................... 1,078,631 1,637,479 Foreign .................................................... 209,780 204,244 ------------ ------------ 14,061,939 14,220,910 Securities sold, not yet purchased .................................. 237,020 29,702 Federal funds purchased ............................................. 825,997 337,283 Security repurchase agreements ...................................... 1,366,653 992,671 Accrued liabilities ................................................. 247,406 321,258 Commercial paper .................................................... 238,660 49,217 Federal Home Loan Bank advances and other borrowings: Less than one year ............................................. 1,038,045 100,750 Over one year .................................................. 112,622 56,796 Long-term debt ...................................................... 453,471 453,735 ------------ ------------ Total liabilities .......................................... 18,581,813 16,562,322 ------------ ------------ Minority interest ................................................... 39,249 34,670 Shareholders' equity: Capital stock: Preferred stock, without par value; authorized 3,000,000 shares; issued and outstanding, none ........ -- -- Common stock, without par value; authorized 200,000,000 shares; issued and outstanding 85,592,643, and 83,554,630 shares ................................... 888,231 796,519 Accumulated other comprehensive loss ........................... (4,158) (3,407) Retained earnings .............................................. 775,765 659,519 ------------ ------------ Total shareholders' equity ................................ 1,659,838 1,452,631 ------------ ------------ $ 20,280,900 $ 18,049,623 ============ ============
6 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Twelve Months Ended December 31, December 31, -------------------------- -------------------------- (In thousands, except per share amounts) 1999 1998 1999 1998 ----------- ----------- ----------- ----------- Interest income: Interest and fees on loans ............................... $ 269,585 $ 236,783 $ 1,001,741 $ 694,338 Interest on loans held for sale .......................... 2,921 3,604 12,194 14,256 Lease financing .......................................... 3,522 3,429 13,293 12,630 Interest on money market investments ..................... 17,694 20,193 67,234 92,248 Interest on securities: Held to maturity: Taxable ........................................ 47,239 37,129 175,701 131,712 Nontaxable ..................................... 4,463 4,778 18,784 16,154 Available for sale: Taxable ........................................ 8,245 12,835 36,480 44,735 Nontaxable ..................................... 1,733 931 3,844 2,733 Trading account ..................................... 7,958 5,917 30,067 24,043 ----------- ----------- ----------- ----------- Total interest income ............................... 363,360 325,599 1,359,338 1,032,849 ----------- ----------- ----------- ----------- Interest expense: Interest on savings and money market deposits ............ 69,614 50,247 247,729 173,833 Interest on time and foreign deposits .................... 38,126 56,955 166,749 143,313 Interest on borrowed funds ............................... 64,106 33,952 203,371 141,761 ----------- ----------- ----------- ----------- Total interest expense .............................. 171,846 141,154 617,849 458,907 ----------- ----------- ----------- ----------- Net interest income ................................. 191,514 184,445 741,489 573,942 Provision for loan losses ..................................... 4,555 3,635 17,956 14,034 ----------- ----------- ----------- ----------- Net interest income after provision for loan losses . 186,959 180,810 723,533 559,908 ----------- ----------- ----------- ----------- Noninterest income: Service charges on deposit accounts ...................... 19,851 18,439 76,756 61,131 Other service charges, commissions and fees .............. 15,992 17,260 66,098 57,027 Trust income ............................................. 3,915 3,943 15,762 10,969 Investment securities gain (loss), net ................... (3,931) (26) (5,266) 4,055 Underwriting and trading income .......................... 2,758 3,657 11,551 9,239 Loan sales and servicing income .......................... 2,311 12,325 40,516 50,365 Other income ............................................. 33,571 5,458 61,128 17,411 ----------- ----------- ----------- ----------- Total noninterest income ............................ 74,467 61,056 266,545 210,197 ----------- ----------- ----------- ----------- Noninterest expense: Salaries and employee benefits ........................... 86,992 85,758 346,710 261,531 Occupancy, net ........................................... 12,278 12,298 49,393 33,387 Furniture and equipment .................................. 12,737 11,193 45,477 38,256 Other real estate expense (income) ....................... 340 505 (66) 656 Legal and professional services .......................... 3,504 5,839 16,156 16,345 Supplies ................................................. 2,520 3,721 11,168 11,904 Postage .................................................. 2,455 3,814 11,656 11,030 Advertising .............................................. 4,689 4,249 18,502 12,613 Merger related expense ................................... 23,376 25,927 27,691 38,128 FDIC premiums ............................................ 442 497 2,152 1,528 Amortization of goodwill and core deposit intangibles .... 9,487 9,149 36,008 31,641 Amortization of mortgage servicing assets ................ 40 1,776 911 5,484 Other .................................................... 31,178 32,396 115,809 94,197 ----------- ----------- ----------- ----------- Total noninterest expense ........................... 190,038 197,122 681,567 556,700 ----------- ----------- ----------- ----------- Income before income taxes and minority interest .............. 71,388 44,744 308,511 213,405 Income taxes .................................................. 26,552 14,387 109,498 69,632 ----------- ----------- ----------- ----------- Net income before minority interest ................. 44,836 30,357 199,013 143,773 Minority interest ............................................. 2,287 420 4,949 420 ----------- ----------- ----------- ----------- Net income .......................................... $ 42,549 $ 29,937 $ 194,064 $ 143,353 =========== =========== =========== =========== Weighted average common and common-equivalent shares outstanding during the period ....................... 86,535 85,075 85,695 81,918 Net income per common share: Basic .................................................... $ 0.50 $ 0.36 $ 2.29 $ 1.77 Diluted .................................................. $ 0.49 $ 0.35 $ 2.26 $ 1.75
7 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
Year Ended December 31, 1999 ---------------------------------------------------------------------- Accumulated Other Total Common Comprehensive Comprehensive Retained Shareholders' (In thousands) Stock Income Income (Loss) Earnings Equity ------------ ------------ ------------ ------------ ------------ Balance, January 1, 1999 ................................... $ 796,519 $ (3,407) $ 659,519 $ 1,452,631 Net income for the year .................................... $ 194,064 194,064 194,064 ------------ Other comprehensive income, net of tax: Realized and unrealized holding loss arising during the period, net of tax benefit of $5,405 ..... (8,726) Reclassification for net realized securities loss recorded in the income statement, net of tax benefit of $4,940 ................................ 7,975 ------------ Other comprehensive loss ............................... (751) (751) (751) ------------ Total comprehensive income ............................. $ 193,313 ============ Cash dividends: Common, $.72 per share ................................. (56,914) (56,914) Stock dividend of acquired company ......................... 21,694 (21,701) (7) Issuance of common shares for acquisitions ................. 58,358 797 59,155 Stock redeemed and retired ................................. (6,650) (6,650) Stock options exercised, net of shares tendered and retired 18,310 18,310 ------------ ------------ ------------ ------------ Balance, December 31, 1999 ................................. $ 888,231 $ (4,158) $ 775,765 $ 1,659,838 ============ ============ ============ ============ Year Ended December 31, 1998 ---------------------------------------------------------------------- Accumulated Other Total Common Comprehensive Comprehensive Retained Shareholders' (In thousands) Stock Income Income (Loss) Earnings Equity ------------ ------------ ------------ ------------ ------------ Balance, January 1, 1998 ................................... $ 292,383 $ 4,537 $ 559,686 $ 856,606 Net income for the year .................................... $ 143,353 143,353 143,353 ------------ Other comprehensive income, net of tax: Realized and unrealized holding loss arising during the period, net of tax benefit of $3,595 ..... (5,803) Reclassification for realized investment Securities gain recorded in the income Statement, net of tax expense of $1,551 ............. (2,504) ------------ Other comprehensive loss ............................... (8,307) (8,307) (8,307) ------------ Total comprehensive income ............................. $ 135,046 ============ Cash dividends: Common, $.54 per share ................................. (40,715) (40,715) Dividend of acquired companies prior to merger ......... (887) (887) Stock dividend of acquired company ......................... 21,000 (21,009) (9) Net proceeds from stock offering ........................... 130,131 130,131 Issuance of common shares for acquisitions ................. 368,259 363 19,091 387,713 Exercise of acquired company warrants prior to acquisition .................................. 1,852 1,852 Stock redeemed and retired ................................. (25,696) (25,696) Stock options exercised, net of shares tendered and retired 8,590 8,590 ------------ ------------ ------------ ------------ Balance, December 31, 1998 ................................. $ 796,519 $ (3,407) $ 659,519 $ 1,452,631 ============ ============ ============ ============
Comprehensive income for the three months ended December 31, 1999 and 1998 was $50,667 and $27,058, respectively. Note to Consolidated Financial Statements The consolidated financial statements for 1998 have been restated to give effect to the merger of Pioneer Bancorporation which was acquired during the last quarter of 1999 and accounted for as a pooling of interests. The consolidated financial statements have also been restated to account for certain business combinations consummated during 1997 and 1998, using the purchase method of accounting instead of the pooling of interests method originally used to account for the acquisitions. 8 ZIONS BANCORPORATION AND SUBSIDIARIES Sold Loans Being Serviced* (Unaudited) Year Ended December 31, ------------------------- (In thousands) 1999 1998 ----------- ----------- Balance at beginning of the year ................. $ 981,784 $ 1,050,293 Add: New loans sold .............................. 1,042,650 825,973 Deduct: Payments and other reductions ............... (771,643) (894,482) ----------- ----------- Balance at end of the year ....................... $ 1,252,791 $ 981,784 =========== =========== * Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding long-term first mortgage residential real estate loans. Nonperforming Assets (Unaudited) Year Ended December 31, ----------------- (In thousands) 1999 1998 ------- ------- Nonaccrual loans ................................. $64,797 $54,673 Restructured loans ............................... 862 5,212 Other real estate owned and other nonperforming assets ........................ 8,939 5,270 ------- ------- Total ............................................ $74,598 $65,155 ======= ======= % of net loans and leases*, other real estate owned and other nonperforming assets ........ .58% .58% Accruing loans past due 90 days or more .......... $20,939 $25,779 ======= ======= % of net loans and leases* ....................... .16% .23% * Includes loans held for sale Allowance for Loan Losses (Unaudited) Year Ended December 31, --------------------- (In thousands) 1999 1998 --------- --------- Balance at beginning of the year ................. $ 212,557 $ 88,622 Allowance for loan losses of companies acquired .. 2,623 125,691 Add: Provision for losses ........................ 17,956 14,034 Deduct: Loan and lease charge-offs .................. (45,566) (25,206) Recoveries .................................. 16,544 9,416 --------- --------- Net loan and lease charge-offs ......... (29,022) (15,790) --------- --------- Balance at end of the year ....................... $ 204,114 $ 212,557 ========= ========= 9 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited)
Twelve Months Ended Twelve Months Ended December 31, 1999 December 31, 1998 ----------------------------------------- ----------------------------------------- Average Amount of Average Average Amount of Average (In thousands) Balance Interest(1) Rate Balance Interest(1) Rate ------------ ------------ ------------ ------------ ------------ ------------ ASSETS Money market investments .................... $ 1,184,699 $ 67,234 5.68% $ 1,629,446 $ 92,248 5.66% Securities: Held to maturity ....................... 3,277,427 204,599 6.24% 2,270,680 154,789 6.82% Available for sale ..................... 740,537 42,394 5.72% 848,951 48,639 5.73% Trading account ........................ 538,085 30,067 5.59% 429,839 24,043 5.59% ------------ ------------ ------------ ------------ Total securities .................. 4,556,049 277,060 6.08% 3,549,470 227,471 6.41% ------------ ------------ ------------ ------------ Loans: Loans held for sale .................... 178,076 12,194 6.85% 201,609 14,256 7.07% Net loans and leases(2)................. 11,641,018 1,019,035 8.75% 7,429,902 708,833 9.54% ------------ ------------ ------------ ------------ Total loans ....................... 11,819,094 1,031,229 8.73% 7,631,511 723,089 9.48% ------------ ------------ ------------ ------------ Total interest-earning assets ............... $ 17,559,842 $ 1,375,523 7.83% $ 12,810,427 $ 1,042,808 8.14% ------------ ------------ Cash and due from banks ..................... 856,178 657,204 Allowance for loan losses ................... (211,178) (131,735) Goodwill and core deposit intangibles ....... 655,266 573,064 Other assets ................................ 1,052,331 488,155 ------------ ------------ Total assets ........................ $ 19,912,439 $ 14,397,115 ============ ============ LIABILITIES Interest-bearing deposits: Savings and NOW deposits ............... $ 1,812,280 $ 44,119 2.43% $ 1,338,428 $ 39,355 2.94% Money market super NOW deposits ........ 5,520,569 203,610 3.69% 3,711,429 134,478 3.62% Time deposits under $100,000 ........... 2,084,862 98,506 4.72% 1,650,899 85,743 5.19% Time deposits $100,000 or more ......... 1,256,698 61,102 4.86% 894,376 49,345 5.52% Foreign deposits ....................... 164,701 7,141 4.34% 181,804 8,225 4.52% ------------ ------------ ------------ ------------ Total interest-bearing deposits .. 10,839,110 414,478 3.82% 7,776,936 317,146 4.08% ------------ ------------ ------------ ------------ Borrowed funds: Securities sold, not yet purchased ..... 271,434 15,622 5.76% 201,842 10,026 4.97% Federal funds purchased and security repurchase agreements ............. 2,368,599 108,490 4.58% 1,908,243 90,446 4.74% Commercial paper ....................... 194,200 10,808 5.57% 27,804 1,605 5.77% FHLB advances and other borrowings: less than one year ................ 545,463 28,505 5.23% 63,365 4,031 6.36% over one year ..................... 76,213 4,824 6.33% 114,034 6,602 5.79% Long-term debt ......................... 452,618 35,122 7.76% 346,697 29,051 8.38% ------------ ------------ ------------ ------------ Total borrowed funds .............. 3,908,527 203,371 5.20% 2,661,985 141,761 5.33% ------------ ------------ ------------ ------------ Total interest-bearing liabilities $ 14,747,637 $ 617,849 4.19% $ 10,438,921 $ 458,907 4.40% ------------ ------------ Noninterest-bearing deposits ................ 3,249,004 2,448,086 Other liabilities ........................... 316,001 196,262 ------------ ------------ Total liabilities ................. 18,312,642 13,083,269 Minority interest ........................... 37,355 8,848 Total shareholders' equity ........ 1,562,442 1,304,998 ------------ ------------ Total liabilities and shareholders' equity ......................... $ 19,912,439 $ 14,397,115 ============ ============ Spread on average interest-bearing funds .... 3.64% 3.74% ============ ============ Net interest income and net yield on interest-earning assets ................ $ 757,674 4.31% $ 583,901 4.56% ============ ============ ============ ============
1 Taxable-equivalent rates used where applicable. 2 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. 10 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited)
Three Months Ended Three Months Ended December 31, 1999 December 31, 1998 ----------------------------------------- ----------------------------------------- Average Amount of Average Average Amount of Average (In thousands) Balance Interest(1) Rate Balance Interest(1) Rate ------------ ------------ ------------ ------------ ------------ ------------ ASSETS Money market investments .................... $ 1,286,174 $ 17,694 5.46% $ 1,389,585 $ 20,193 5.77% Securities: Held to maturity ....................... 3,503,828 54,105 6.13% 2,659,824 43,955 6.56% Available for sale ..................... 755,711 10,911 5.73% 1,011,716 14,165 5.55% Trading account ........................ 543,296 7,959 5.81% 484,577 5,917 4.84% ------------ ------------ ------------ ------------ Total securities .................. 4,802,835 72,975 6.03% 4,156,117 64,037 6.11% ------------ ------------ ------------ ------------ Loans: Loans held for sale .................... 156,581 2,921 7.40% 217,626 3,604 6.57% Net loans and leases(2) ................ 12,339,898 274,186 8.82% 10,710,249 240,259 8.90% ------------ ------------ ------------ ------------ Total loans ....................... 12,496,479 277,107 8.80% 10,927,875 243,863 8.85% ------------ ------------ ------------ ------------ Total interest-earning assets ............... $ 18,585,488 $ 367,776 7.85% $ 16,473,577 $ 328,093 7.90% ------------ ------------ Cash and due from banks ..................... 923,795 736,450 Allowance for loan losses ................... (210,107) (218,450) Goodwill and core deposit intangibles ....... 678,822 677,217 Other assets ................................ 1,134,768 713,914 ------------ ------------ Total assets ........................ $ 21,112,766 $ 18,382,708 ============ ============ LIABILITIES Interest-bearing deposits: Savings and NOW deposits ............... $ 1,890,469 $ 12,753 2.68% $ 1,393,163 $ 9,839 2.80% Money market super NOW deposits ........ 5,891,378 56,861 3.83% 4,907,403 40,408 3.27% Time deposits under $100,000 ........... 1,886,646 22,212 4.67% 2,636,585 32,521 4.89% Time deposits $100,000 or more ......... 1,159,585 14,050 4.81% 1,665,891 22,179 5.28% Foreign deposits ....................... 160,267 1,864 4.61% 198,625 2,255 4.50% ------------ ------------ ------------ ------------ Total interest-bearing deposits ... 10,988,345 107,740 3.89% 10,801,667 107,202 3.94% ------------ ------------ ------------ ------------ Borrowed funds: Securities sold, not yet purchased ..... 231,930 3,467 5.93% 222,923 2,582 4.60% Federal funds purchased and security repurchase agreements ............. 2,807,286 34,310 4.85% 1,807,742 19,820 4.35% Commercial paper ....................... 301,435 4,513 5.94% 73,581 1,091 5.88% FHLB advances and other borrowings: less than one year ................ 773,955 11,158 5.72% 69,587 1,091 6.22% over one year ..................... 115,402 1,704 5.86% 62,206 1,004 6.40% Long-term debt ......................... 452,288 8,954 7.85% 428,958 8,364 7.74% ------------ ------------ ------------ ------------ Total borrowed funds .............. 4,682,296 64,106 5.43% 2,664,997 33,952 5.05% ------------ ------------ ------------ ------------ Total interest-bearing liabilities $ 15,670,641 $ 171,846 4.35% $ 13,466,664 $ 141,154 4.16% ------------ ------------ Noninterest-bearing deposits ................ 3,329,086 3,166,993 Other liabilities ........................... 364,076 258,847 ------------ ------------ Total liabilities ................. 19,363,803 16,892,504 Minority interest ........................... 38,282 35,393 Total shareholders' equity ........ 1,710,681 1,454,811 ------------ ------------ Total liabilities and shareholders' equity ......................... $ 21,112,766 $ 18,382,708 ============ ============ Spread on average interest-bearing funds .... 3.50% 3.74% ============ ============ Net interest income and net yield on interest-earning assets ................ $ 195,930 4.18% $ 186,939 4.50% ============ ============ ============ ============ 1 Taxable-equivalent rates used where applicable. 2 Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
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