-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, tTQ0MLgxuLjnPmPYAY3vVGyJGou1fwGVDmT3vKUq8RY7RB0WM98rbJKmhUIaqLrG kMWKvT/blcE1WiPWM2Ynkg== 0000109380-94-000004.txt : 19941117 0000109380-94-000004.hdr.sgml : 19941117 ACCESSION NUMBER: 0000109380-94-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941109 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZIONS BANCORPORATION /UT/ CENTRAL INDEX KEY: 0000109380 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 870227400 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02610 FILM NUMBER: 94558293 BUSINESS ADDRESS: STREET 1: 1380 KENNECOTT BLDG CITY: SALT LAKE CITY STATE: UT ZIP: 84133 BUSINESS PHONE: 8015244787 MAIL ADDRESS: STREET 1: 1380 KENNECOTT BUILDING CITY: SALT LAKE CITY STATE: UT ZIP: 84133 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 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q /X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 --------------------- OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------- ------------- COMMISSION FILE NUMBER 0-2610 ZIONS BANCORPORATION ----------------------------------------------------- (Exact name of Registrant as specified in its charter) UTAH 87-0227400 ---------------- ------------------ (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1380 KENNECOTT BUILDING SALT LAKE CITY, UTAH 84133 - - - ----------------------------------- ----------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (801) 524-4787 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirement for the past 90 days. Yes /X/ No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. . Common Stock, without par value, outstanding at November 4, 1994 14,555,896 shares
ZIONS BANCORPORATION AND SUBSIDIARIES INDEX Page ---- PART I. FINANCIAL INFORMATION --------------------- ITEM 1. Financial Statements (unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Income 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Retained Earnings 7 Notes to Consolidated Financial Statements 8 ITEM 2. Management's Discussion and Analysis 9 PART II. OTHER INFORMATION ----------------- ITEM 6. Exhibits and Reports on Form 8-K 22 SIGNATURES 22 - - - ----------
PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30, December 31, (In thousands) 1994 1993 ------------- -------------- Assets Cash and due from banks $ 309,173 $ 338,970 Money market investments: Interest-bearing deposits 17,229 24,967 Federal funds sold and security resell agreements 649,784 572,713 Investments: Held to maturity at cost (approximate market value $969,646 and $830,087) Taxable 775,726 617,019 Nontaxable 198,960 196,241 Available for sale at market 327,320 347,346 Trading account securities at market 230,720 98,333 --------- --------- 1,532,726 1,258,939 Loans: Loans held for sale at cost, which approximates market 146,661 238,206 Loans, leases and other receivables 2,447,748 2,269,970 --------- --------- 2,594,409 2,508,176 Less: Unearned income and fees, net of related costs 19,765 21,830 Allowance for loan losses 66,847 68,461 --------- --------- 2,507,797 2,417,885 Premises and equipment, at cost, less accumulated depreciation 74,072 72,049 Amounts paid in excess of net assets of acquired businesses 19,025 11,920 Other real estate owned 2,086 3,267 Other assets 116,490 100,344 --------- --------- Total assets $5,228,382 $4,801,054 ========= ==========
ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) (Unaudited)
September 30, December 31, (In thousands) 1994 1993 ------------- ------------ Liabilities and Sharholder's Equity Deposits: Noninterest-bearing demand $ 840,184 $ 879,908 Interest-bearing: Savings and money market 2,081,142 1,867,483 Time under $100,00 512,076 535,456 Time over $100,000 102,512 80,879 Foreign 92,359 68,563 ---------- ----------- 3,628,273 3,432,289 Securities sod, not yet purchased 275,950 46,640 Federal Funds purchased and security repurchase agreements 715,767 595,200 Accrured liabilities 64,728 66,497 Federal Home Loan Bank advances and other borrowings: Less than on year 26,770 136,140 Over one year 103,702 152,109 Long-term debt: Subordinated notes 54,000 54,000 Industrial revenue bonds 1,550 1,550 Other long-term debt 3,312 4,037 --------- --------- Total liabilities 4,874,052 4,488,462 Shareholders' equity: Capital stock: Preferred stock,without par value; authorized 3,000,000 shares; issued and outstanding, none -- -- Common stock, without par value; authorized 30,000,000 shares; issued and outstanding, 14,555,896 and 14,201,367 shares 79,027 66,257 Net unrealized holding gains and losses on securities available for sale (4,212) 415 Retained earnings 279,515 245,920 ---------- --------- Total shareholders' equity 354,330 312,592 ---------- --------- Total liabilities and shareholders' equity $5,228,382 $4,801,054 ========== ==========
ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ---------------- (In thousands) 1994 1993 1994 1993 ---- ---- ---- ---- Interest income: Interest and fees on loans $55,694 $44,600 $152,242 $128,176 Interest on loans held for sale 3,196 2,824 9,594 8,820 Interest on money market investments 10,570 7,606 27,377 17,596 Interest on securities: Held to maturity: Taxable 10,876 14,246 28,336 42,362 Nontaxable 2,716 2,241 8,062 6,164 Available for sale 5,101 -- 14,980 -- Trading account 4,489 2,006 11,117 4,194 Lease financing 2,297 2,510 7,216 7,403 ------ ------ -------- ------- Total interest income 94,939 76,033 258,924 214,715 ------ ------ -------- ------- Interest expense: Interest on savings and money market deposits 16,027 12,932 43,819 37,337 Interest on time deposits under $100,000 4,970 5,647 15,019 18,202 Interest on time deposits over $100,000 1,116 773 2,844 2,251 Interest on foreign deposits 1,263 389 2,876 1,045 Interest on securities sold, not yet purchased 3,500 1,832 7,140 1,832 Interest on borrowed funds 16,204 10,665 41,825 24,348 ------ ------ -------- ------- Total interest expense 43,080 32,238 113,523 85,015 ------ ------ -------- ------- Net interest income 51,859 43,795 145,401 129,700 Provision for loan losses 440 482 1,197 2,255 ------ ------ -------- ------- Net interest income after provision for loan losses 51,419 43,313 144,204 127,445 ------ ------ -------- ------- Noninterest income: Service charges on deposit accounts 5,991 5,952 17,641 17,572 Other service charges, commissions and fees 5,870 5,835 16,951 15,236 Trust income 947 1,019 3,223 3,387 Investment securities gains (losses), net 80 69 (254) 44 Trading account income 1,019 887 1,414 1,865 Loan sales and servicing income 2,293 7,452 9,591 14,430 Other income 3,909 1,475 6,404 5,292 ------ ------ ------- ------- Total noninterest income 20,109 22,689 54,970 57,826 ------ ------ -------- ------- Noninterest expenses: Salaries and employee benefits 22,934 22,765 68,715 62,378 Occupancy, net 2,322 2,154 6,425 5,976 Furniture and equipment expense 3,273 2,387 9,070 6,653 Other real estate expense (44) 882 7 823 Legal and professional services 1,396 1,053 3,603 3,469 Supplies 1,153 1,113 3,575 3,331 Postage 1,128 1,089 3,416 3,143 FDIC premiums 1,937 1,776 5,611 5,485 Amortization of intangible assets 1,201 1,133 2,860 3,291 Loss on early extinguishment of debt -- -- -- 6,022 Other expenses 9,439 8,966 25,944 23,859 ------ ------ -------- ------- Total noninterest expenses 44,739 43,318 129,226 124,430 ------ ------ ------- ------- Income before income taxes and cumulative effect of changes in accounting principles 26,789 22,684 69,948 60,841 Income taxes 9,124 7,287 23,427 19,721 ------ ------ -------- ------- Net income before cumulative effect of changes in accounting principles 17,665 15,397 46,521 41,120 Cumulative effect of changes in accounting principles -- -- -- 1,659 ------ ------ -------- ------- Net income $17,665 $15,397 $ 46,521 $ 42,779 ======= ====== ======= ======= Weighted average common and common equivalent shares outstanding 14,721 14,300 14,566 14,283 Earnings per common share: Income before cumulative effect of changes in accounting principles $1.20 $1.08 $3.19 $2.88 Cumulative effect of changes in accounting principles -- -- -- .12 ----- ----- ----- ----- Net income per common share $ 1.20 $1.08 $3.19 $3.00 ===== ==== ===== ====
ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ----------------- ----------------- (In thousands) 1994 1993 1994 1993 ---- ---- ---- ---- Cash flows from operating activities: Net income $ 17,665 $ 15,397 $ 46,521 $ 42,779 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 440 482 1,197 2,255 Write-downs of other real estate owned 15 560 179 629 Depreciation of premises and equipment 2,412 1,967 6,657 5,515 Amortization of premium on core deposits and other intangibles 1,201 1,133 2,860 3,291 Amortization of net premium/discount on investment securities 1,298 676 4,077 3,557 Accretion of unearned income and fees, net of related costs 121 (2,267) (2,239) (3,020) Proceeds from sales of trading account securities 25,409,178 9,726,371 71,376,169 11,683,782 Increase in trading account securities (25,326,082) (9,616,806) (71,508,556) (11,564,281) Net (gain) loss on sales of investment securities (80) (69) 254 (44) Proceeds from loans held for sale 164,935 299,597 602,676 918,180 Increase in loans held for sale (145,346) (268,008) (531,986) (863,357) Net gain on sales of loans, leases and other assets (3,074) (6,158) (6,488) (10,925) Net gain on sales of other real estate owned (183) (53) (208) (117) Change in accrued income taxes (1,350) 1,976 (1,397) 3,191 Change in accrued interest receivable (1,386) (1,851) (5,288) 1,819 Change in other assets (2,401) (18,355) (6,200) (32,940) Change in accrued interest payable 2,706 682 2,664 248 Change in accrued liabilities 1,335 (8,668) (4,397) (5,279) ------ ------- ------- ------- Net cash provided by (used in) operating activities 121,404 126,606 (23,505) 185,283 ------- ------- ------- ------- Cash flows from investing activities: Net (increase) decrease in money market investments 163,275 671,468 (67,481) 701,379 Proceeds from sales of investment securities held to maturity -- 18,444 -- 20,710 Proceeds from maturities of investment securities held to maturity 36,944 79,105 104,797 203,950 Purchases of investment securities held to maturity (115,140) (102,398) (245,966) (443,629) Proceeds from sales of investment securities available for sale 9,097 -- 90,030 -- Proceeds from maturities of investment securities available for sale 12,905 -- 99,737 -- Purchases of investment securities available for sale (10,141) -- (159,604) -- Proceeds from sales of loans and leases 341,874 1,807 341,874 199,443 Net increase in loans and leases (274,988) (221,884) (448,449) (471,948) Principal collections on leveraged leases -- 1,000 -- 1,309 Proceeds from sales of premises and equipment 332 41 756 136 Purchases or premises and equipment (3,408) (3,622) (9,221) (11,412) Proceeds from sales of other real estate owned 1,066 1,548 3,926 2,629 Proceeds from sales of mortgage servicing rights 2,654 77 2,688 598 Purchases of mortgage servicing rights (107) (390) (530) (1,074) Proceeds from sales of other assets 278 545 527 788 Cash paid for acquisitions, net of cash received -- (64,280) 9,851 (59,829) ------- ------- -------- ------- Net cash provided by (used in) investing activities 164,641 381,461 (277,065) 143,050 ======= ======= ========= =======
ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------- ----------------- (In thousands) 1994 1993 1994 1993 ---- ---- ---- ---- Cash flows from financing activities: $ 29,097 $ 22,638 $100,213 $234,408 Net increase in deposits Net change in short-term funds borrowed (265,547) (619,191) 232,341 (684,348) Proceeds from FHLB advances over one year 2,293 -- 13,401 104,723 Payments on FHLB advances over one year (4,012) (3,589) (61,808) (3,776) Proceeds from issuance of long-term debt -- -- -- 4,000 Payments on long-term debt (245) (289) (725) (42,904) Proceeds from issuance of common stock -- 385 277 866 Dividends paid (4,375) (3,469) (12,926) (9,130) -------- ------- -------- -------- Net cash provided by (used in) financing activities (242,789) (603,515) 270,773 (396,161) -------- -------- -------- -------- Net increase (decrease) in cash and due from banks 43,256 (95,448) (29,797) (67,828) Cash and due from banks at beginning of period 265,917 351,552 338,970 323,932 -------- -------- -------- -------- Cash and due from bank at end of period $309,173 $256,104 $309,173 $256,104 ======== ======== ======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- (In thousands) 1994 1993 1994 1993 ---- ---- ---- ---- Cash paid for: Interest $ 40,808 $ 31,392 $112,102 $ 85,028 Income taxes 9,297 4,881 21,898 18,140 Loans transferred to other real estate owned 898 143 2,306 923
ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Unaudited)
Nine Months Ended Twelve Months Ended September 31, December 31, ----------------- ------------------- (In thousands) 1994 1993 1993 ---- ---- ---- Balance at beginning of period $245,920 $197,992 $197,992 Add: Net income 46,521 42,779 58,205 Retained earnings of company acquired -- 2,428 2,428 ------- -------- -------- 292,441 243,199 258,625 Deduct cash dividends: Preferred paid to minority shareholder of subsidiary 23 7 13 Common, per share $ .86 in 1994 and $ .70 and $ .98 in 1993 12,418 8,638 12,207 Common dividend of NBA prior to merger 485 485 485 ------- -------- --------- Balance at end of period $279,515 $234,069 $245,920 ======= ======= ========
ZIONS BANCORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements give effect to the merger of Zions Bancorporation and National Bancorp of Arizona Inc. (NBA) on January 14, 1994, which has been accounted for as a pooling of interests, and amounts in the 1993 consolidated financial statements have been restated to give effect to this merger. Operating results for the nine months ended September 30, 1994 are not necessarily indicative of the results that may be expected for the year ended December 31, 1994. For further information, refer to the consolidated financial statements and footnotes thereto included in Zions Bancorporation's Annual Report to Shareholders on Form 10-K for the year ended December 31, 1993. ZIONS BANCORPORATION AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS FINANCIAL HIGHLIGHTS
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- (In thousands, except per share and ratio data) 1994 1993 %Change 1994 1993 % Change ---- ---- ------- ---- ---- -------- EARNINGS: Net income before cumulative effect of changes in accounting principles $17,665 $15,397 14.7 $46,521 $41,120 13.1 Net income 17,665 15,397 14.7 46,521 42,779 8.7 PER COMMON SHARE: Net income before cumulative effect of changes in accounting principles $ 1.20 $ 1.08 11.1 $ 3.19 $ 2.88 10.8 Net income 1.20 1.08 11.1 3.19 3.00 6.3 Dividends .30 .28 7.1 .86 .70 22.9 Book value at September 30 24.34 21.20 14.8 Market value at September 30 39.50 42.25 -6.5 (In thousands) Weighted average common and common equivalent shares outstanding 14,721 14,300 14,566 14,283 Common shares outstanding at September 30 14,556 14,160 PERFORMANCE RATIOS: Net interest margin 4.07% 4.03% 3.93% 4.41% Return on average assets 1.25% 1.25% 1.13% 1.30% Return on average common equity 20.3% 20.7% 18.7% 20.2% Dividend payout ratio 26.6% 20.9% 27.8% 21.3% Nonperforming assets to loans, leases and other real estate owned and other nonperforming assets at September 30 .79% 1.29% CAPITAL RATIOS: Average equity to average assets 6.15% 6.06% 6.05% 6.40% Tier I Leverage at September 30 5.74% 5.68% Tier I risk-based capital at September 30 11.27% 10.68% Total risk-based capital at September 30 14.41% 14.06%
ZIONS BANCORPORATION AND SUBSIDIARIES OPERATING RESULTS Consolidated net income for the third quarter of 1994 was $17,665,000 or $1.20 per share compared to $15,397,000 or $1.08 per share for the third quarter of 1993 and $16,418,000 or $1.11 per share for the second quarter of 1994. Consolidated net income was $46,521,000 or $3.19 per share for the first nine months of 1994, compared to $42,779,000 or $3.00 per share for the first nine months of 1993, which constituted increases of 8.7% and 6.3%, respectively. Earnings results for the first nine months of 1993 were positively affected in the net amount of $1,659,000 or $.12 per share due to the cumulative effect of changes in accounting principles implemented during the first quarter of 1993. The Company's earnings for the nine months ended September 30, 1993, however, were also negatively affected by a one-time expense of $6,022,000 included in noninterest expenses related to early extinguishment of certain long-term debt. Amounts in the 1993 consolidated financial statements have been restated to give effect to the merger of Zions Bancorporation and National Bancorp of Arizona, on January 14, 1994, which has been accounted for as a pooling of interests. The Company's third-quarter $2,268,000 increase in earnings relative to the same period a year ago reflect a $8,064,000 (18.4%) increase in net interest income, a $42,000 (8.7%) decrease in the provision for loan losses, a $2,580,000 (11.4%) decrease in noninterest income, a $1,421,000 (3.3%) increase in noninterest expenses and a $1,837,000 (25.2%) increase in income tax expense. The $1,625,000 increase in net income for the nine-month period ended September 30, 1994, compared to the similar period in 1993 (excluding the aforementioned expense relating to the early extinguishment of debt and the net benefit resulting from the cumulative effect of changes in accounting principles), reflect a $15,701,000 (12.1%) increase in net interest income, a $1,058,000 (46.9%) decrease in the provision for loan losses, a $2,856,000 (4.9%) decrease in noninterest income, a $10,818,000 (9.1%) increase in noninterest expenses and a $1,460,000 (6.6%) decrease in income tax expense. The annualized return on average assets for the third quarter and for the first nine months of 1994 was 1.25% and 1.13%, respectively, resulting in an annualized return on average common shareholders' equity for the same periods of 20.3% and 18.7%. ZIONS BANCORPORATION AND SUBSIDIARIES NET INTEREST INCOME AND INTEREST RATE SPREADS Net interest income for the third quarter of 1994, adjusted to a fully taxable- equivalent basis, increased 18.2% from the third quarter of 1993, and increased 6.1% from the second quarter of 1994. Net interest margin was 4.07%, compared to 4.03% for the third quarter of 1993, and 3.92% for the second quarter of 1994. Nine-month net interest income, on a fully taxable-equivalent basis, was $148,856,000 in 1994, an increase of 12.3% compared to the first nine months of 1993. Net interest margin for the first nine months of 1994 was 3.93%, compared to 4.41% for the first nine months of 1993. The yield on average earning assets increased 45 basis points during the third quarter of 1994 as compared to the third quarter of 1993, and increased 46 basis points from the second quarter of 1994. The average rate paid this quarter on interest-bearing funds increased 50 basis points from the third quarter of 1993, and increased 34 basis points from the second quarter of 1994. Comparing the first nine months of 1994 with 1993, the yield on average earning assets decreased 31 basis points, while the cost of interest-bearing funds increased by 17 basis points. The spread on average interest-bearing funds for the third quarter of 1994 was 3.48%, down from the 3.53% for the third quarter of 1993 but up from the 3.36% for the second quarter of 1994. The spread on average interest-bearing funds for the first nine months of 1994 was 3.38% compared with 3.86% for the same period in 1993. The Company attempts to minimize interest rate movement sensitivity through the management of interest rate maturities and the use of off-balance sheet arrangements such as caps, floors and interest rate exchange contract agreements. Net interest income to the Company from the use of such off-balance sheet arrangements for the first nine months of 1994 was $153,000 compared to $207,000 for the first nine months of 1993. Net interest margin is also affected by the Company's maintenance of a strong liquidity position. The increased level of taxable-equivalent net interest income in the first nine months of 1994, compared to the same period in 1993, was influenced primarily by a 25.9% increase in average earning assets. The decrease in net interest margin resulted primarily from increased borrowings related to increased trading and funding activity, and the effect of rates on earning assets declining while rates paid on interest-bearing funds increased. ZIONS BANCORPORATION AND SUBSIDIARIES NET INTEREST INCOME AND RATES (Unaudited)
Three Months Ended Nine Months Ended September 30, 1994 September 30, 1994 ------------------- ------------------ Average Amount of Average Average Amount of Average (In thousands) Balance Interest* Rate Balance Interest* Rate -------- --------- ------- --------- --------- --------- Money market investments: Interest-bearing deposits $ 24,317 $ 128 2.09% $ 24,597 $ 633 3.44% Federal funds sold and security resell agreements 923,150 10,442 4.49% 939,038 26,744 3.81% Other money market investments - -- --% -- -- -% ------- ------ ----- ------- ------- ----- Total money market investments 947,467 10,570 4.43% 963,635 27,377 3.80% ------- ------ ----- ------- ------- ----- Securities: Held to maturity: Taxable 719,144 10,876 6.00% 703,774 28,336 5.38% Nontaxable 198,884 3,880 7.74% 192,404 11,517 8.00% Available for sale 338,286 5,101 5.98% 337,374 14,980 5.94% Trading account securities 306,750 4,489 5.81% 278,078 11,117 5.35% --------- ------ ----- -------- ------- ------ Total securities 1,563,064 24,346 6.18% 1,511,630 65,950 5.83% --------- ------ ----- --------- ------ ----- Loans: Loans held for sale 187,718 3,196 6.75% 200,866 9,594 6.39% Loans, leases and other receivables** 2,474,276 57,991 9.30% 2,387,482 159,458 8.93% --------- ------ ----- --------- ------- ----- Total loans 2,661,994 61,187 9.12% 2,588,348 169,052 8.73% --------- ------ ----- --------- ------- ----- Total earning assets $5,172,525 $96,103 7.37% $5,063,613 $262,379 6.93% ========= ====== ===== ========= ======= ===== Interest-bearing deposits: Savings $ 755,520 $ 5,443 2.86% $ 734,112 $ 16,121 2.94% Money market 1,309,768 10,584 3.21% 1,268,662 27,698 2.92% Time under $100,000 491,117 4,970 4.01% 515,597 15,019 3.89% Time over $100,000 88,187 1,116 5.02% 93,079 2,844 4.09% Foreign 110,832 1,263 4.52% 101,794 2,876 3.78% --------- ------ ----- -------- ------ ----- Total interest-bearing deposits 2,755,424 23,376 3.37% 2,713,244 64,558 3.18% --------- ------ ----- --------- ------ ----- Borrowed funds: Securities sold, not yet purchased 224,294 3,500 6.19% 169,924 7,140 5.62% Federal funds purchased and security repurchase agreements 1,215,339 13,117 4.28% 1,169,377 32,159 3.68% FHLB advances and other borrowings: Less than one year 29,249 397 5.38% 40,497 1,388 4.58% Over one year 104,640 1,433 5.43% 124,312 4,255 4.58% Long-term debt 59,226 1,257 8.42% 59,408 4,023 9.05% --------- ------ ----- --------- ------ ----- Total borrowed funds 1,632,748 19,704 4.79% 1,563,518 48,965 4.19% --------- ------ ----- --------- ------- ----- Total interest-bearing funds $4,388,172 $43,080 3.89% $4,276,762 $113,523 3.55% ========= ====== ===== ========= ======= ===== Net interest income $53,023 $148,856 Net interest margin 4.07% 3.93% Spread on average interest-bearing funds 3.48% 3.38%
*Taxable-equivalent rates used where applicable. ** Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans ZIONS BANCORPORATION AND SUBSIDIARIES NET INTEREST INCOME AND RATES (Unaudited)
Three Months Ended Nine Months Ended September 30, 1993 September 30, 1993 ------------------ ------------------ Average Amount of Average Average Amount of Average (In thousands) Balance Interest* Rate Balance Interest* Rate -------- ---------- ------- -------- --------- -------- Money market investments: Interest-bearing deposits $ 91,050 $ 1,150 5.01% $ 134,732 $ 4,974 4.94% Federal funds sold and security resell agreements 737,466 6,281 3.38% 476,912 12,010 3.37% Other money market investments 24,865 175 2.79% 29,767 612 2.75% -------- ----- ------ -------- ------- ----- Total money market investments 853,381 7,606 3.54% 641,411 17,596 3.67% -------- ----- ----- ------- ------ ----- Securities: Held to maturity: Taxable 1,018,110 14,246 5.55% 962,518 42,362 5.88% Nontaxable 160,708 3,296 8.14% 141,136 9,065 8.59% Available for sale -- -- --% -- -- --% Trading account securities 101,421 2,006 7.85% 61,013 4,194 9.19% --------- ------ ----- --------- ------ ----- Total securities 1,280,239 19,548 6.06% 1,164,667 55,621 6.39% --------- ------ ----- --------- ------ ----- Loans: Loans held for sale 178,840 2,824 6.26% 184,618 8,820 6.39% Loans, leases and other receivables** 2,108,249 47,110 8.87% 2,029,811 135,579 8.93% --------- ------ ------ --------- ------- ----- Total loans 2,287,089 49,934 8.66% 2,214,429 144,399 8.72% --------- ------ ----- --------- ------- ------ Total earning assets $4,420,709 $77,088 6.92% $4,020,507 $217,616 7.24% ========= ====== ===== ========= ======= ===== Interest-bearing deposits: Savings $ 662,681 $ 4,750 2.84% $ 642,775 $ 13,947 2.90% Money market 1,174,679 8,182 2.76% 1,113,039 23,390 2.81% Time under $100,000 547,770 5,647 4.09% 569,232 18,202 4.28% Time over $100,000 80,520 773 3.81% 79,766 2,251 3.77% Foreign 59,138 389 2.61% 57,666 1,045 2.42% --------- ------ ----- --------- ------ ----- Total interest-bearing deposits 2,524,788 19,741 3.10% 2,462,478 58,835 3.19% --------- ------ ----- --------- ------ ----- Borrowed funds: Securities sold, not yet purchased 177,369 1,832 4.10% 59,123 1,832 4.14% Federal funds purchased and security repurchase agreements 766,075 5,928 3.07% 581,783 12,699 2.92% FHLB advances and other borrowings: Less than one year 84,592 869 4.08% 85,494 2,467 3.86% Over one year 155,793 1,812 4.61% 97,979 3,098 4.23% Long-term debt 60,131 2,056 13.57% 79,213 6,084 10.27% -------- ------ ------ -------- ------ ------ Total borrowed funds 1,243,960 12,497 3.99% 903,592 26,180 3.87% --------- ------ ----- --------- ------- ----- Total interest-bearing funds $3,768,748 $32,238 3.39% $3,366,070 $ 85,015 3.38% ========= ====== ===== ========= ====== ===== Net interest income $44,850 $132,601 Net interest margin 4.03% 4.41% Spread on average interest-bearing funds 3.53% 3.86%
*Taxable-equivalent rates used where applicable. ** Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans ZIONS BANCORPORATION AND SUBSIDIARIES PROVISION FOR LOAN LOSSES The provision for loan losses was $440,000 for the third quarter of 1994, as compared with $482,000 for the third quarter of 1993, a decrease of 8.7% and $467,000 for the second quarter of 1994. Net charge-offs for the third quarter of 1994 were $2,574,000 or .10% of average net loans and leases, compared to net recoveries of $250,000 or (.01)% of average loans and leases for the third quarter of 1993, and net charge-offs of $778,000 or .03% of average loans and leases for the second quarter of 1994. The provision for loan losses for the first nine months of 1994 totaled $1,197,000, 46.9% less than the provision for the first nine months of 1993. Net charge-offs for the first nine months of 1994 were $4,119,000 or .16% of average net loans and leases, compared to net recoveries of $5,726,000 for the first nine months of 1993 or (.26)% of average net loans and leases. NONINTEREST INCOME Noninterest income for the third quarter of 1994 totaled $20,109,000, a decrease of 11.4% from the $22,689,000 for the third quarter of 1993 but an increase of 8.9% over the $18,465,000 for the second quarter of 1994. Comparing the third quarter of 1994 and the third quarter of 1993, service charges on deposit accounts, other service charges, commissions and fees, trading account income, and other income increased .7%, .6%, 14.9% and 165.0%, respectively, while trust income and loan sales and servicing income decreased 7.1% and 69.2%, respectively, and sales of investment securities resulted in greater net gains. Noninterest income for the nine months ending September 30, 1994 decreased 4.9% to $54,970,000, compared to $57,826,000 for the first nine months of 1993. Comparing the first nine months of 1994 and the first nine months of 1993, service charges on deposit accounts, other service charges, commissions and fees, and other income increased .4%, 11.3% and 21.0%, respectively, while trust income, trading account income and loan sales and servicing income decreased 4.8%, 24.2% and 33.5%, respectively, and sales of investment securities resulted in net losses in 1994 compared to net gains in 1993. Trading account income was adversely affected by mark-to-market adjustments on trading securities as a result of rising interest rates during the first quarter of 1994, and loan sales income has also been adversely affected by mark-to- market adjustments on mortgages held for sale and reduced sales volume in 1994. The increase in other income resulted primarily from a greater gain on the sale of mortgage servicing rights in the third quarter of 1994 than the gain on the sale of an interest rate exchange contract agreement reported in the second quarter of 1993. NONINTEREST EXPENSES Noninterest expenses for the third quarter of 1994, totaling $44,739,000, increased 3.3% from the $43,318,000 for the third quarter of 1993 and increased 6.5% from the $41,996,000 for the second quarter of 1994. Comparing the third quarter of 1994 and the third quarter of 1993, salaries and employee benefits increased .7%, occupancy, furniture and equipment expenses increased 23.2%, and the total of all other expenses increased 1.2%. ZIONS BANCORPORATION AND SUBSIDIARIES Noninterest expenses for the nine months ending September 30, 1994 of $129,226,000 increased 9.1% compared to the $118,408,000 for the corresponding period in 1993, excluding the one-time expense of $6,022,000 related to the early extinguishment of debt. Comparing the first months of 1994 and the first nine months of 1993, salaries and employee benefits increased 10.2%, occupancy, furniture and equipment expenses increased 22.7%, and the total of all other expenses increased 3.7%. The increase in salaries and employee benefits resulted primarily from increased staffing in investment and mortgage origination and servicing activities, general salary increases, bonuses, and commission costs. The increase in occupancy, furniture and equipment expenses resulted primarily from the expansion of the ATM network, and the installation of personal computers and local area networks during the last half of 1993. The increase in all other expenses resulted primarily from increases in supplies, postage, FDIC premiums and telecommunications related to acquisitions and expansion. INCOME TAXES The Company experienced an income tax expense of $9,124,000 for the third quarter of 1994 compared to $7,287,000 for the third quarter of 1993, and $8,325,000 for the second quarter of 1994, Tax expense for the first nine months of 1994 was $23,427,000 compared to $19,721,000 for the first nine months of 1993. ANALYSIS OF FINANCIAL CONDITION EARNING ASSETS Average earning assets grew to $5,063.6 million in the nine months ended September 30, 1994 compared to $4,020.5 million in the nine months ended September 30, 1993. Earning assets comprised 91.9% of total average assets for the first nine months of 1994, compared with 91.0% for the first nine months of 1993. Average money market investments, consisting of interest-bearing deposits, federal funds sold and security resell agreements, and other money market investments, increased 50.2% to $963.6 million compared to $641.4 million in the first nine months of 1994. During the first nine months of 1994, average securities increased 29.8% to $1,511.6 million compared to $1,164.7 million in the first nine months of 1993. Average taxable securities increased 8.2% nontaxable securities increased 36.3%, and trading account securities increased 355.8% compared with the same period in 1993. Average net loans and leases increased 16.9% to $2,588.3 million for the first nine months of 1994 compared to $2,214.4 in the first nine months of 1993, representing 51.1% of earning assets in the first nine months of 1994 compared to 55.1% in the first nine months of 1993. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- (In thousands) 1994 1993 1994 1993 ---- ---- ---- ---- Assets Cash and due from banks $ 318,979 $ 325,899 $ 325,485 $ 305,775 Money market investments: Interest-bearing deposits 24,317 91,050 24,597 134,732 Federal funds sold and security resell agreements 923,150 737,466 939,038 476,912 Other money market investments -- 24,865 -- 29,767 Securities: Held to maturity: Taxable 719,144 1,018,110 703,774 962,518 Nontaxable 198,884 160,708 192,404 141,136 Available for sale 338,286 -- 337,374 -- Trading account securities 306,750 101,421 278,078 61,013 ---------- --------- ---------- --------- 1,563,064 1,280,239 1,511,630 1,164,667 Loans: Loans held for sale 187,718 178,840 200,866 184,618 Loans, leases and other receivables 2,493,775 2,131,310 2,407,343 2,053,772 ---------- --------- ---------- --------- 2,681,493 2,310,150 2,608,209 2,238,390 Less: Unearned income and fees, net of related costs 19,499 23,061 19,861 23,961 Allowance for loan losses 69,247 67,827 68,681 64,309 ---------- --------- ---------- --------- 2,592,747 2,219,262 2,519,667 2,150,120 Premises and equipment. at cost, less accumulated depreciation 73,331 69,477 73,159 67,297 Amounts paid in excess of net assets of acquired businesses 21,264 12,071 16,674 12,171 Other real estate owned 2,679 4,808 2,309 5,684 Other assets 103,756 107,030 99,354 69,178 ---------- --------- ---------- --------- Total assets $5,623,287 $4,872,167 $5,511,913 $4,416,303 ========== ========== ========== ========== Liabilities and shareholders' equity Deposits: Noninterest-bearing demand $ 819,894 $ 755,433 $ 829,450 $ 709,383 Interest-bearing: Savings and money market 2,065,288 1,837,360 2,002,774 1,755,814 Time under $100,000 491,117 547,770 515,597 569,232 Time over $100,000 88,187 80,520 93,079 79,766 Foreign 110,832 59,138 101,794 57,666 ---------- --------- ---------- --------- 3,575,318 3,280,221 3,542,694 3,171,861 Securities sold, not yet purchased 224,294 177,369 169,924 59,123 Federal funds purchased and security repurchase agreements 1,215,339 766,075 1,169,377 581,783 Accrued liabilities 69,248 52,631 72,240 57,809 Federal Home Loan Bank advances and other borrowings: Less than one year 29,249 84,592 40,497 85,494 Over one year 104,640 155,793 124,312 97,979 Long-term debt 59,226 60,131 59,408 79,213 ---------- --------- ---------- --------- Total liabilities 5,277,314 4,576,812 5,178,452 4,133,262 Shareholders' equity: Preferred stock -- -- -- -- Common stock 72,642 66,180 72,642 65,796 Net unrealized holding gains and losses (2,676) -- (1,898) -- Retained earnings 276,007 229,175 262,717 217,245 ---------- --------- --------- --------- Total shareholders' equity 345,973 295,355 333,461 283,041 ---------- --------- ---------- --------- Total liabilities and shareholders' equity $5,623,287 $4,872,167 $5,511,913 $4,416,303 ========== ========= ========== =========
ZIONS BANCORPORATION AND SUBSIDIARIES LOANS The Company has structured its organization to separate the lending function from the credit administration function to strengthen the control and independent evaluation of credit activities. Loan policies and procedures provide the Company with a framework for consistent underwriting and a basis for sound credit decisions. In addition, the Company has well-defined standards for grading its loan portfolio, and management utilizes the comprehensive loan grading system to determine risk potential in the portfolio. Another aspect of the Company's credit risk management strategy is the diversification of the loan portfolio. The Company has a well-diversified loan portfolio with no significant exposure to highly leveraged transactions and has no foreign credits in its loan portfolio. The table below sets forth the amount of loans outstanding by type at September 30, 1994 and December 31, 1993.
(In thousands) Types September 30, 1994 December 31, 1993 ----- ------------------ ----------------- Loans held for sale $ 146,661 $ 238,206 Commercial, financial, and agricultural 462,161 511,982 Real estate: Construction 212,245 213,114 Other 1,254,880 1,022,888 Consumer 370,359 378,679 Lease financing 126,790 130,450 Other receivables 21,313 12,857 --------- --------- Total loans $2,594,409 $2,508,176 ========= =========
Loans held for sale at September 30, 1994 decreased 38.4% from year-end 1993. All other loans, net of unearned income and fees increased 8.0% to $2,428.0 million at September 30, 1994, compared to $2,248.1 million at December 31, 1993. Other real estate-secured loans and other receivables increased from year end 22.7% and 65.8%, respectively, as commercial loans, real estate construction loans, and lease financing decreased 9.7%, .4% and 2.8% from year end. Consumer loans decreased 2.2% from year end, as a result of the securitization and sale of $165.6 million of installment loan receivables immediately prior to the end of the third quarter and an additional $176.3 million of consumer loans since year end related to revolving loan securitizations. Within the other real estate-secured loan portfolio, 1-4 family residential loans increased 20.3%, home equity credit line loans increased 34.1% and all other real estate loans increased 20.7% from year end. ZIONS BANCORPORATION AND SUBSIDIARIES RISK ELEMENTS The Company's nonperforming assets, which include nonaccruing loans, restructured loans and other real estate owned and other nonperforming assets, were $20,312,000 at September 30, 1994, down 34.6% from $31,043,000 at September 30, 1993, and down 33.7% from $30,637,000 at December 31, 1993. Such nonperforming assets as a percentage of net loans and leases and other real estate owned and other nonperforming assets were .79%, 1.29% and 1.23% at September 30, 1994, September 30, 1993, and December 31, 1993, respectively. Accruing loans past due 90 days or more totaled $2,912,000 at September 30, 1994, down 5.8% from $3,091,000 at September 30, 1993, and down 73.1% from $10,821,000 at December 31, 1993. No loans at September 30, 1994 were considered potential problem loans compared to no loans at September 30, 1993 and two loans totaling $1,114,000 at December 31, 1993. Potential problem loans are defined as loans presently current by their terms, but about which management has serious doubt as to the future ability of the borrower to comply with present repayment terms and which may result in the reporting of the loans as nonperforming assets. The following table sets forth the nonperforming assets at September 30, 1994 and 1993, and December 31, 1993.
September 30, December 31, -------------- ------------ (In thousands) 1994 1993 1993 ---- ---- ---- Nonaccrual loans $14,476 $25,576 $23,364 Restructured loans 571 1,620 4,006 Other real estate owned and other nonperforming assets 5,265 3,847 3,267 ------ ------- ------- Total $20,312 $31,043 $30,637 ====== ====== ====== % of net loans and leases* and other real estate owned and other nonperforming assets .79% 1.29% 1.23% Accruing loans past due 90 days or more $ 2,912 $ 3,091 $10,821 ===== ===== ====== % of net loans and leases* .11% .13% .44% *Includes loans held for sale.
ZIONS BANCORPORATION AND SUBSIDIARIES ALLOWANCE FOR LOAN LOSSES In analyzing the adequacy of the allowance for loan and lease losses, management utilizes a comprehensive loan grading system to determine risk potential in the portfolio, and considers the results of independent internal and external credit review, historical charge-off experience, and changes in the composition and volume of the portfolio. Other factors, such as general economic conditions and collateral values, are also considered. Larger problem credits are individually evaluated to determine appropriate reserve allocations. Additions to the allowance are based upon the resulting risk profile of the portfolio developed through the evaluation of the above factors. The following table shows the changes in the allowance for loan losses and a summary of loan loss experience.
Twelve Months Nine Months Ended Ended (In thousands) September 30, December 31, ------------------ ----------------- 1994 1993 1993 ---- ---- ---- Average loans* and leases outstanding (net of unearned income) $2,588,348 $2,214,429 $,222,182 ========== ========= ========== Allowance for possible losses: Balance at beginning of the period $ 68,461 $ 59,807 $ 59,807 Allowance of companies acquired 1,308 546 546 Loans and leases charged-off: Loans held for sale - - - Commercial, financial and agricultural (4,286) (892) (1,804) Real estate (530) (673) (1,179) Consumer (3,355) (4,528) (5,461) Lease financing (1,157) (305) (360) Other receivables - - - --------- --------- ---------- Total (9,328) (6,398) (8,804) -------- --------- --------- Recoveries: Loans held for sale - - - Commercial, financial and agricultural 1,679 9,159 10,117 Real estate 491 514 611 Consumer 2,904 2,313 3,043 Lease financing 135 138 148 Other receivables - - - -------- -------- --------- Total 5,209 12,124 13,919 ------- -------- -------- Net loan and lease (charge-offs) recoveries (4,119) 5,726 5,115 Provision charged against earnings 1,197 2,255 2,993 ------- -------- -------- Balance at end of the period $ 66,847 $ 68,334 $ 68,461 ======== ======== ======= *Includes loans held for sale Ratio of net charge-offs (recoveries) to average loans and leases .21% (.35)% (.23)%
ZIONS BANCORPORATION AND SUBSIDIARIES The allowance for loan losses as a percentage of net loans and leases was 2.60% at September 30, 1994, compared to 2.85% at September 30, 1993 and 2.75% at December 31, 1993. The allowance, as a percentage of nonaccrual loans and accruing loans past due 90 days or more was 384.4% at September 30, 1994, compared to 238.4% at September 30, 1993 and 200.3% at December 31, 1993. The allowance, as a percentage of nonaccrual loans and restructured loans was 444.3% at September 30, 1994, compared to 251.3% at September 30, 1993 and 250.1% at December 31, 1993. Included in the allowance for loan losses is an amount for unused loan commitments and standby letters of credit which at September 30, 1994 and 1993, and at December 31, 1993, amounted to $3,302,000, $2,298,000 and $1,972,000, respectively. Unused loan commitments and standby letters of credit, at September 30, 1994 and 1993, and at December 31, 1993, amounted to $1,278.5 million, $1,096.0 million and $1,105.7 million, respectively. DEPOSITS Average total deposits of $3,542.7 million for the first nine months of 1994 increased 11.7% over the $3,171.9 million for the first nine months of 1993, with average demand deposits increasing 16.9%. Average savings and money market deposits, time deposits over $100,000 and foreign deposits for the first nine months of 1994 increased 14.1%, 16.7% and 76.5%, respectively, from the first nine months of 1993. Average time deposits under $100,000, decreased 9.4% during the first nine months of 1994, compared with the same period one year earlier. Total deposits increased 5.7% to $3,628.3 million compared to $3,432.3 million at December 31, 1993. Comparing September 30, 1994 to December 31, 1993, savings and money market deposits, time deposits over $100,000 and foreign deposits increased 11.4%, 26.7% and 34.7%, respectively, while demand deposits decreased 4.5% and time deposits under $100,000 decreased 4.4%. LIQUIDITY AND INTEREST RATE SENSITIVITY Average net loans and leases were 73.1% of average total deposits for the nine months ended September 30, 1994 compared to 69.8% for the nine months ended September 30, 1993. Liquidity is primarily provided by the regularly scheduled maturities of the Company's investment and loan portfolios. In addition, the Company's liquidity is enhanced by the fact that cash, money market securities and liquid investments, net of "short-term purchased" liabilities and wholesale deposits, totaled $1,230.8 million or 35.8% of core deposits at September 30, 1994. The Company's core deposits, consisting of demand, savings and money market deposits and time deposits under $100,000, constituted 94.6% of total deposits at September 30, 1994 compared to 95.6% at December 31, 1993. Maturing balances in loan portfolios provide flexibility in managing cash flows. Maturity management of those funds is an important source of medium-to long-term liquidity. The Company's ability to raise funds in the capital markets through the "securitization" process and by debt issuances allows the Company to take advantage of market opportunities to meet funding needs at reasonable cost. The Company manages its liquidity position in order to assure its ability to meet maturing obligations. ZIONS BANCORPORATION AND SUBSIDIARIES The Company, through the management of interest rate "maturities" and the use of off-balance sheet arrangements such as interest rate caps, floors, and interest rate exchange contract agreements, attempts to structure portfolios in such a way as to minimize the effects of fluctuating interest rate levels on net interest income. Considering Zions Bancorporation independent from its subsidiaries (Parent Company), the Parent Company's cash requirements consist primarily of principal and interest payments on its borrowings, dividend payments to shareholders, and cash operating expenses and income taxes. The Parent Company's cash needs are routinely satisfied through payments by subsidiaries of dividends, management and other fees, principal and interest payments on subsidiary borrowings from the parent Company, and proportionate shares of income taxes. CAPITAL RESOURCES AND DIVIDENDS Total shareholders' equity at September 30, 1994 was $354.3 million, an increase of 13.4% over the $312.6 million at December 31, 1993, and an increase of 18.0% over the $300.3 million at September 30, 1993. The ratio of average equity to average assets for the first nine months of 1994 was 6.05%, compared to 6.40% for the same period in 1993. At September 30, 1994, the Company's Tier I risk- based capital ratio was 11.27%, compared to 10.85% at December 31, 1993 and 10.68% at September 30, 1993. At September 30, 1994, the Company's total risk- based capital ratio was 14.41%, compared to 14.12% at December 31, 1993 and 14.06% at September 30, 1993. The Company's leverage ratio as of September 30, 1994 was 5.74%, compared to 5.44% at December 31, 1993 and 5.68% at September 30, 1993. Dividends declared per common share for the third quarter of 1994 of $.30 increased 7.1% compared to $.28 for the third quarter of 1993. Dividends declared per common share of $.86 for the first nine months of 1994 increased 22.9% compared to $.70 for the first nine months of 1993. The cash dividend payout to net income applicable to common shares for the first nine months of 1994 was 27.8%, compared to 21.3% for the first nine months of 1993. MERGERS AND ACQUISITIONS On November 1, 1994, Zions Bancorporation and First Western Bancorporation, headquartered in Moab, Utah, announced their agreement to merge in a pooling-of- interests merger subject to applicable regulatory and First Western Bancorporation shareholders approvals. First Western Bancorporation's banking subsidiary, First Western National Bank, operates offices in Moab, Blanding and Monticello, Utah, and has assets of approximately $40 million. Even though First Western Bancorporation's operations prior to acquisition are not significant to Zions, the transaction will enable the Company to merge First Western National Bank with Zions First National Bank, and to provide expanded banking services to the communities of Grand and San Juan Counties. ZIONS BANCORPORATION AND SUBSIDIARIES PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits Exhibit 27 Article 9 Financial Schedules for Form 10-Q b) Reports on Form 8-K There were no reports on Form 8-K filed during the quarter ending September 30, 1994. S I G N A T U R E S 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 thereunto duly authorized. ZIONS BANCORPORATION /s/ Harris H. Simmons --------------------- Harris H. Simmons, President and Chief Executive Officer /s/ Gary L. Anderson -------------------- Gary L. Anderson, Senior Vice President and Chief Financial Officer Dated: November 9, 1994 EX-27 2
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1994 AND RELATED UNAUDITED CONSOLIDATED STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 INCLUDED IN THE COMPANY'S FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1994 SEP-30-1994 309,173 17,229 649,784 230,720 327,320 974,686 969,646 2,574,644 66,847 5,228,382 3,628,273 1,018,487 64,728 162,564 79,027 0 0 275,303 5,228,382 169,052 89,872 0 258,924 64,558 113,523 145,401 1,197 (254) 129,226 69,948 46,421 0 0 46,521 3.19 3.19 3.84 14,476 2,912 571 0 68,461 9,328 5,209 66,847 13,559 0 53,288
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