-----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, TtZcQf+qbIBCo6fj6NrDjMPGJMsJf6W0wKZ6w5Ww3NJzIRo9YBmSVXOv3DqH0wHM 7+2cRCtbmGp0/zVa+/4szQ== 0000891836-98-000291.txt : 19980519 0000891836-98-000291.hdr.sgml : 19980519 ACCESSION NUMBER: 0000891836-98-000291 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980518 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980518 SROS: NASD 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: 98626811 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 May 18, 1998 Date of Report (Date of Earliest Event Reported) ZIONS BANCORPORATION (Exact Name of Registrant As Specified In Its Charter) UTAH (State or Other Jurisdiction of Incorporation) 0-2610 87-0227400 (Commission File Number) (IRS Employer 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) (Former Name or Former Address, If Changed Since Last Report) Item 5. Other Events. On March 25, 1998, Zions Bancorporation ("Zions") entered into an Agreement and Plan of Merger, by and among Zions, SBC Acquisition Corp. ("SBC") and The Sumitomo Bank of California ("Sumitomo"), pursuant to which SBC, an indirect wholly owned subsidiary of Zions, will merge with and into Sumitomo. In connection therewith, Zions hereby files The Sumitomo Bank of California's unaudited balance sheet as of March 31, 1998 and unaudited statements of income, changes in shareholders' equity and cash flows for the three months ended March 31, 1998 and 1997. This financial information appears as Exhibit 99.1 and is incorporated herein by reference. The foregoing summary is qualified in its entirety by reference to such documents. 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 Unaudited balance sheet as of March 31, 1998 and unaudited statements of income, changes in shareholders' equity and cash flows for the three months ended March 31, 1998 and 1997 of The Sumitomo Bank of California. 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 hereunder duly authorized. Dated: May 15, 1998 ZIONS BANCORPORATION By: /s/ Dale M. Gibbons Name: Dale M. Gibbons Title: Executive Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99.1 Unaudited balance sheet as of March 31, 1998 and unaudited statements of income, changes in shareholders' equity and cash flows for the three months ended March 31, 1998 and 1997 of The Sumitomo Bank of California. 4 EX-99.1 2 FINANCIAL STATEMENTS
BALANCE SHEET (Unaudited) - ----------------------------------------------------------------------------------------------------- (In thousands, except share amounts) March 31, December 31, March 31, 1998 1997 1997 ------------------------------------------- Assets Cash and due from banks $ 180,813 $ 200,760 $ 204,791 Interest-bearing deposits with other banks 354,681 466,000 526,479 Investment securities: Held-to-maturity 110,468 150,307 237,718 Available-for-sale 346,612 375,787 385,767 Federal funds sold 0 0 40,000 Loans and lease financing 3,881,131 3,891,863 3,634,293 Less: Unearned income (14,866) (12,038) (12,412) Allowance for credit losses (116,686) (116,753) (120,624) -------------------------------------------- Net loans and lease financings 3,749,579 3,763,072 3,501,257 Bank premises and equipment, net 31,902 31,640 29,608 Customers' acceptance liability 4,032 4,390 1,051 Other assets 108,195 109,616 138,461 -------------------------------------------- Total Assets $ 4,886,282 $ 5,101,572 $ 5,065,132 ============================================ Liabilities and Shareholders' Equity Deposits: Domestic offices: Noninterest-bearing $ 425,535 $ 671,590 $ 604,804 Interest-bearing 3,752,607 3,587,875 3,570,691 Foreign office: Interest-bearing 82,737 95,612 113,291 -------------------------------------------- Total deposits 4,260,879 4,355,077 4,288,786 Federal funds purchased and repurchase agreements 32,700 93,100 71,330 Other short-term borrowings 24,955 25,031 10,648 Acceptances outstanding 4,032 4,390 1,051 Long-term debt 2,812 65,534 151,965 Other liabilities 54,985 55,092 57,412 -------------------------------------------- Total liabilities 4,380,363 4,598,224 4,581,192 ------------------------------------------- Shareholders' equity: Preferred stock: no par Authorized: 5,000,000 shares 75,000 75,000 75,000 Outstanding: 1998 and 1997-750,000 shares Common stock: $5 par value 82,107 82,099 82,059 Authorized: 25,000,000 shares Outstanding: March 31, 1998 - 16,421,402 shares December 31, 1997 - 16,419,733 shares March 31, 1997 - 16,411,723 shares Surplus 267,555 267,484 267,267 Undivided profits 81,502 78,920 61,826 Net unrealized loss on available-for-sale securities (245) (155) (2,212) --------------------------------------------- Total shareholders' equity 505,919 503,348 483,940 --------------------------------------------- Total Liabilities and Shareholders' Equity $4,886,282 $ 5,101,572 $ 5,065,132 ---------------------------------------------
STATEMENTS OF INCOME (unaudited) (In thousands) Three Months Ended March 31, - ------------------------------------------------------------------------------------------------------ 1998 1997 --------------------------------------------- Interest Income Interest and fees on loans and lease financing $ 79,982 $ 77,055 Interest on investment securities: Taxable 7,198 9,393 Exempt from federal income taxes 0 95 Interest on deposits with other banks 6,206 7,187 Interest on federal funds sold 506 575 --------------------------------------------- Total interest expense 93,892 94,305 --------------------------------------------- Interest Expense Interest on deposits 42,188 39,982 Interest on short-term borrowings 630 792 Interest on long-term debt 847 2,417 --------------------------------------------- Total interest expense 43,665 43,191 --------------------------------------------- Net interest income 50,227 51,114 Provision for credit losses 2,000 5,000 --------------------------------------------- Net interest income after provision for credit losses 48,227 46,114 --------------------------------------------- Other Operating Income Service charges on deposit accounts 1,244 1,217 Trust fees and commissions 890 871 Investment securities gains 0 61 Other income 3,627 4,026 --------------------------------------------- Total other operating income 5,761 6,175 --------------------------------------------- Other Operating Expense Salaries 15,833 15,701 Employee benefits 6,507 4,465 --------------------------------------------- Total staff expense 22,340 20,166 Net occupancy expense 4,131 3,851 Equipment expense 1,845 1,942 Other expense 14,235 11,184 --------------------------------------------- Total other operating expense 42,551 37,143 --------------------------------------------- Income before income taxes 11,437 15,146 Income tax expense 4,047 5,473 --------------------------------------------- NET INCOME $ 7,390 $ 9,673 ============================================= NET INCOME APPLICABLE TO COMMON STOCK $ 5,866 $ 8,149 --------------------------------------------- Average common share outstanding 16,420,957 16,410,882
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STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - ------------------------------------------------------------------------------------------------------ (In thousands) Three Months Ended March 31, --------------------------------------------- 1998 1997 --------------------------------------------- Preferred Stock Balance at beginning of period $ 75,000 $ 75,000 --------------------------------------------- Balance at end of period $ 75,000 $ 75,000 --------------------------------------------- Common Stock Balance at beginning of period $ 82,099 $ 82,043 Dividends reinvested 8 16 --------------------------------------------- Balance at end of period $ 82,107 $ 82,059 --------------------------------------------- Surplus Balance at beginning of period $ 267,484 $ 267,197 Dividends reinvested 71 70 --------------------------------------------- Balance at end of period $ 267,555 $ 267,267 --------------------------------------------- Undivided profits Balance at beginning of period $ 78,920 $ 56,959 Net income 7,390 9,673 Cash dividends declared on: Common stock at $0.20 per share in 1998 and 1997 (3,284) (3,282) Preferred stock (1,524) (1,524) --------------------------------------------- Balance at end of period $ 81,502 $ 61,826 --------------------------------------------- Net unrealized gains (losses) on available-for-sale securities Balance at beginning of period $ (155) $ (670) Change in unrealized gains (losses) (90) (1,542) --------------------------------------------- Balance at end of period $ (245) $ (2,212) --------------------------------------------- Total shareholders' equity at end of period $ 505,919 $ 483,940 =============================================
STATEMENTS OF CHANGES IN ALLOWANCE FOR CREDIT LOSSES (unaudited) - ------------------------------------------------------------------------------------------------------ (In thousands) Three Months Ended March 31, --------------------------------------------- 1998 1997 --------------------------------------------- Balance at beginning of period $ 116,753 $ 126,171 Provision charged to expense 2,000 5,000 Recoveries credited 968 2,023 Losses charged (3,035) (12,570) --------------------------------------------- Balance at end of period $ 116,686 $ 120,624 ---------------------------------------------
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STATEMENTS OF CASH FLOW (unaudited) - ------------------------------------------------------------------------------------------------------ (In thousands) Three Months Ended March 31, --------------------------------------------- 1998 1997 --------------------------------------------- Operating Activities Net income $ 7,390 $ 9,673 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 2,000 5,000 Provision for depreciation and amortization 1,398 1,513 Provision for deferred income taxes 2,295 2,240 Gain on sales of other real estate owned (133) (795) Amortization of investment security premiums and dis (320) (275) Gain on maturities and sales of investment securities -- (61) Net (increase) decrease in interest receivable 5,849 (1,591) Net increase in prepaid expenses (5,963) (1,112) Net decrease in interest payable (2,253) (670) Net increase in accrued expenses 3,918 8,582 Others, net (3,197) (24,730) --------------------------------------------- Net cash provided (used) by operating $ 10,984 $ (2,226) activities --------------------------------------------- Investing Activities Held-to-maturity securities Maturities $ 40,000 $ 1,727 Available-for-sale securities Sales -- 58,233 Maturities 159,156 8,990 Purchases (129,962) (145,088) Net (increase) decrease in interset-bearing deposits with other banks 111,320 (7,700) Net increase in loans and lease financing 11,381 11,874 Proceeds from sales of other real estate owned 957 3,331 Purchase of premises and equipment (1,659) (860) --------------------------------------------- Net cash provided (used) by investing activities $ 191,193 $ (69,493) --------------------------------------------- Financing Activities Net increase (decrease) in deposits $ (94,199) $ 50,027 Net increase (decrease) in short-term borrowings (60,476) 33,779 Net decrease in long-term debt (144) (134) Redemption of long-term debt (62,577) -- Proceeds from issuance of common stock 79 86 Cash dividends paid (4,807) (4,805) --------------------------------------------- Net cash provided (used) by financing activities $ (222,124) $ 78,953 Net increase (decrease) in cash and due from banks (19,947) 7,234 --------------------------------------------- Cash and due from banks at beginning of period $ 200,760 $ 197,557 --------------------------------------------- Cash and due from banks at end of period $ 180,813 $ 204,791 ---------------------------------------------
-4- NOTES TO FINANCIAL STATEMENTS (Unaudited) Basis of Presentation The unaudited financial statements of Sumitomo Bank of California (the Bank) 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. Operating results for the three months ended March 31, 1998 are not necessarily indicative of the results that may be expected for the year ended December 31, 1998. For further information, refer to the financial statements and footnotes thereto included in the Bank's Annual Report to Shareholders on Form 10-K for the year ended December 31, 1997. The Bank adopted Statement of Financial Accounting Standards No. 128, "Earnings per Share" (SFAS 128) on January 1, 1997 and disclosed the effects within its December 31, 1997 annual report. SFAS 128 replaces primary & fully diluted earnings per share with basic and diluted earnings per share calculations. Basic earnings per share calculations result in the same earnings per share previously reported by the Bank. There are no potentially dilutive common shares. The Bank's basic earnings per share for the three months ended March 31, 1998, and 1997 were as follows (in thousands, except share data): Three months ended March 31, 1998 1997 ------------------------------ Net income $ 7,390 $ 9,673 Less: Preferred stock dividends (1,524) (1,524) ------------------------------ Income available to common shareholders 5,866 8,149 ------------------------------ Weighted average shares 16,420,957 16,410,882 Basic earnings per share $ 0.36 $ 0.50 ============================== The Bank adopted SFAS 130 "Reporting Comprehensive Income" (by including footnote disclosure only) for the quarter ending March 31, 1998. SFAS 130 establishes standards for reporting and displaying comprehensive income and its components in the financial statements. For the Bank, comprehensive income includes net income reported on the income statement and changes in the fair value of its available-for-sale investments reported as a component of shareholders' equity. The following table presents net income adjusted by the change in unrealized gains or losses on the available-for-sale investments as a component of comprehensive income for the three months ended March 31, 1998, and 1997 (in thousands): Three months ended March 31, 1998 1997 ------------------------------ Net income $ 7,390 $ 9,673 Net change in unrealized gains (losses) on available for sale investments (90) (1,542) ------------------------------ Comprehensive income $ 7,300 $ 8,131 ============================== -5- -----END PRIVACY-ENHANCED MESSAGE-----