EX-99.1 2 dex991.htm PRESS RELEASE Press Release

EXHIBIT 99.1

LOGO

***FOR IMMEDIATE RELEASE***

 

For: ZIONS BANCORPORATION   Contact: Clark Hinckley
One South Main, 15th Floor   Tel: (801) 524-4787
Salt Lake City, Utah   January 24, 2008
Harris H. Simmons  
Chairman/Chief Executive Officer  

ZIONS BANCORPORATION REPORTS EARNINGS OF $0.39

PER DILUTED COMMON SHARE FOR FOURTH QUARTER 2007

SALT LAKE CITY, January 24, 2008 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported fourth quarter net earnings applicable to common shareholders of $42.2 million, or $0.39 per diluted common share, compared to $142.7 million or $1.32 per diluted common share for the fourth quarter of 2006. The return on average common equity was 3.29% compared to 10.50% for the third quarter of 2007 and 12.08% for the fourth quarter of 2006.

Net earnings applicable to common shareholders for 2007 were $479.4 million or $4.42 per diluted share compared to $579.3 million or $5.36 per diluted share for 2006. The return on average common equity for 2007 was 9.57% compared to 12.89% for 2006.

Comparisons to 2006 include the impact of the Company’s acquisition of The Stockmen’s Bancorp, Inc., which became effective January 17, 2007.

Fourth Quarter 2007 Key Performance Highlights Compared to Third Quarter 2007

 

  •  

Loan growth of $1.3 billion.

 

  •  

Average core deposit increase of $0.8 billion.

 

  •  

Net interest margin of 4.27%, down 17 basis points.

 

  •  

Impairment and valuation losses on securities of $158.2 million, or $0.89 per diluted share.

 

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ZIONS BANCORPORATION

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January 24, 2008

 

  •  

Visa Inc. litigation accrual of $8.1 million, or $0.05 per diluted share.

 

  •  

Income tax reductions under FIN 48 of $11.9 million.

 

  •  

Credit quality:

Provision for loan losses of $70.0 million, up $14.6 million from $55.4 million.

Net loan and lease charge-offs of $26.7 million, up $8.6 million from $18.1 million.

Nonperforming assets of $283.9 million, up $87.3 million from $196.6 million.

“This quarter, relatively strong core performance was largely overshadowed by impairment and valuation losses,” said Harris H. Simmons, chairman and chief executive officer. “We were pleased by the strength of loan growth during the quarter as well as solid core deposit growth. While credit costs increased, the deterioration in credit was manageable and reflects our historically strong underwriting.”

Earnings for the fourth quarter of 2007 were unfavorably impacted by the following items, including those previously disclosed in Form 8-K filings on December 19, 2007 and December 31, 2007:

 

  1. The Company recognized a pretax charge of approximately $109 million or $0.60 per diluted share for eight Available For Sale trust preferred REIT CDO securities deemed to be other than temporarily impaired. Of this amount, approximately $65 million pretax had been recognized as of September 30, 2007 as a component of Accumulated Other Comprehensive Income.

 

  2. The Company recorded a pretax loss of approximately $49 million or $0.29 per diluted share from purchases of $895 million of certain securities from Lockhart Funding, LLC, an off-balance sheet commercial paper conduit sponsored by Zions Bank. These purchases were made at book value pursuant to a liquidity agreement between Zions Bank and Lockhart. Approximately $55 million of these purchases resulted from investment downgrades. All of the $895 million of securities purchased from Lockhart are guaranteed by the U.S. Government or its agencies, or are rated AAA by at least one rating agency. At December 31, 2007, Lockhart had approximately $2.1 billion of securities remaining in its portfolio.

 

  3. The Company recorded a pretax charge of approximately $8.1 million or $0.05 per diluted share for the fair value of its contingent obligation related to certain Visa litigation.

 

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ZIONS BANCORPORATION

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January 24, 2008

 

Loan Growth

On-balance-sheet net loans and leases were $39.1 billion at December 31, 2007, an increase of approximately $1.3 billion or 13.4% annualized from $37.8 billion at September 30, 2007, and an increase of approximately $4.4 billion or 12.8% from $34.7 billion at December 31, 2006. Loan growth during the quarter was concentrated primarily in commercial lending and secondarily in commercial term real estate and consumer loans, principally at Zions Bank, Amegy Bank of Texas, and Vectra Bank Colorado. Construction and land development loans declined slightly during the quarter.

Deposits

Average core deposits for the fourth quarter of 2007 increased $0.8 billion or 10.2% annualized to $31.9 billion compared to $31.1 billion for the third quarter of 2007 and increased $2.1 billion or 7.1% compared to $29.8 billion for the fourth quarter of 2006. Average total deposits for the fourth quarter of 2007 increased $0.6 billion to $36.4 billion or 7.0% annualized compared to $35.8 billion for the third quarter of 2007, and increased $2.5 billion or 7.5% compared to $33.9 billion for the fourth quarter of 2006. Average noninterest-bearing demand deposits for the fourth quarter of 2007 were $9.3 billion compared to $9.4 billion for the third quarter of 2007 and $9.5 billion for the fourth quarter of 2006.

Net Interest Income

Net interest income for the fourth quarter of 2007 increased $2.2 million or 1.9% annualized to $478.9 million compared to $476.6 million for the third quarter of 2007, and increased $19.8 million or 4.3% compared to $459.0 million for the fourth quarter of 2006. Taxable-equivalent net interest income for the fourth quarter of 2007 increased $2.0 million or 1.7% annualized to $485.2 million compared to $483.1 million for the third quarter of 2007, and increased $19.9 million or 4.3% from $465.3 million for the fourth quarter of 2006.

During the fourth quarter of 2007, the Company purchased asset-backed commercial paper from Lockhart. The amount of commercial paper included in money market investments on the Company’s average balance sheet for the fourth quarter was approximately $763 million. The amount of the purchased commercial paper outstanding at December 31, 2007 was approximately $710 million. These purchases were made to provide liquidity to Lockhart due to ongoing contraction and disruptions in the credit markets.

 

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ZIONS BANCORPORATION

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January 24, 2008

 

The net interest margin was 4.27% for the fourth quarter of 2007 compared to 4.44% for the third quarter of 2007 and 4.60% for the fourth quarter of 2006. Among the primary factors influencing the decline of the net interest margin for the quarter were strong loan growth funded mainly by increased nondeposit borrowings, purchases of Lockhart commercial paper, and competitive deposit pricing pressures.

Noninterest Income

As a result of the $158.2 million of impairment and valuation losses on securities previously discussed, noninterest income for the fourth quarter of 2007 was $(20.2) million. Noninterest income was $145.8 million for the third quarter of 2007 and $139.9 million for the fourth quarter of 2006. During the quarter, service charges and fees on deposit accounts and trust and wealth management income both continued their recent growth, reflecting continued organic growth in these businesses. Loan sales and servicing income decreased during the quarter primarily because of an impairment charge of $3.3 million on retained interests from certain previous small business loan securitizations due to increases in default and discount rate assumptions. Trading and nonhedge derivative income (loss) includes $7.0 million of nonhedge derivative losses for the fourth quarter compared to $9.4 million of losses for the third quarter of 2007.

Noninterest Expense

Noninterest expense for the fourth quarter of 2007 was $353.0 million compared to $352.0 million for the third quarter of 2007 and $342.9 million for the fourth quarter of 2006. Salaries and employee benefits decreased $13.3 million during the quarter primarily because of reductions to bonus, long-term incentive, and profit sharing accruals. Other noninterest expense increased $14.0 million mainly due to the $8.1 million Visa litigation accrual and to increased FDIC premiums of approximately $2.6 million. The Visa litigation accrual represents an estimate of the Company’s proportionate share of a contingent obligation to indemnify Visa Inc. for certain litigation matters. The increase in the efficiency ratio to

 

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ZIONS BANCORPORATION

Press Release – Page 5

January 24, 2008

 

75.9% for the fourth quarter of 2007 was primarily due to the impairment and valuation losses on securities and to the Visa litigation accrual. The efficiency ratio was 56.6% excluding the impairment and valuation losses on securities. The efficiency ratio was 56.0% for the third quarter of 2007 and 56.7% for the fourth quarter of 2006.

Income Taxes

The income tax provision was a benefit of $11.0 million for the fourth quarter. Taxable income was significantly lower as previously discussed, and the Company reduced its liability for uncertain tax positions under the provisions of FIN 48, which reduced income taxes and related interest and penalties by $11.9 million.

Asset Quality

Nonperforming assets were $283.9 million at December 31, 2007 compared to $196.6 million at September 30, 2007 and $82.0 million at December 31, 2006, primarily reflecting continuing weakness in residential development and construction activity in the Southwest. The ratio of nonperforming assets to net loans and leases and other real estate owned was 0.73% at December 31, 2007 compared to 0.52% at September 30, 2007 and 0.24% at December 31, 2006.

Net loan and lease charge-offs for the fourth quarter of 2007 were $26.7 million or 0.28% annualized of average loans. This compares with $18.1 million or 0.19% annualized of average loans for the third quarter of 2007 and $17.9 million or 0.21% annualized of average loans for the fourth quarter of 2006.

The provision for loan losses was $70.0 million for the fourth quarter of 2007 compared to $55.4 million for the third quarter of 2007 and $26.7 million for the fourth quarter of 2006. The combined provisions for loan losses and unfunded lending commitments were $70.1 million for the fourth quarter of 2007, $55.5 million for the third quarter of 2007, and $27.4 million for the fourth quarter of 2006.

The allowance for loan losses as a percentage of net loans and leases was 1.18% at December 31, 2007, 1.11% at September 30, 2007 and 1.05% at December 31, 2006. The allowance was 171.0% of

 

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ZIONS BANCORPORATION

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January 24, 2008

 

nonperforming loans at December 31, 2007. The total allowance and reserve for credit losses (allowance for loan losses plus the reserve for unfunded lending commitments) was $480.9 million or 1.23% of net loans and leases at December 31, 2007 compared to $439.6 million or 1.16% at September 30, 2007 and $384.5 million or 1.11% at December 31, 2006.

Capital Management

The Company has not repurchased any common shares since August 16, 2007. At December 31, 2007, approximately $56.3 million remained under the current $400 million repurchase authorization. For 2007, the Company repurchased approximately 3.9 million common shares for $318.8 million at an average price of $81.04 per share. The Company has stated that it does not anticipate a resumption of share repurchases in the near term. Approximately 2.6 million shares were issued in January 2007 for the Stockmen’s acquisition.

The Company’s tangible equity ratio was 6.17% at December 31, 2007 compared to 6.40% at September 30, 2007 and 6.51% at December 31, 2006. The decrease from the previous quarter is primarily due to loan growth and to reduced earnings, partially offset by net improvements in Accumulated Other Comprehensive Income.

Weighted average common and common-equivalent shares outstanding for the fourth quarter of 2007 were 106,902,983 compared to 107,879,963 for the third quarter of 2007 and 108,221,096 for the fourth quarter of 2006. Common shares outstanding at December 31, 2007 were 107,116,505 compared to 106,934,360 at September 30, 2007 and 106,720,884 at December 31, 2006.

Other Events

Effective November 2, 2007, the Company’s National Bank of Arizona subsidiary completed the sale of the 11 California branches included in its acquisition of The Stockmen’s Bancorp in January 2007. The sale of these branches included approximately $169 million of loans and $190 million of deposits. No gain or loss was recognized, and goodwill and core deposit intangibles were reduced to reflect the sale of the branches.

 

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ZIONS BANCORPORATION

Press Release – Page 7

January 24, 2008

 

Conference Call

Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 24, 2008). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-659-2056 (international: 617-614-2714) and entering the passcode 90495326, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from 7:30 p.m. ET on Thursday, January 24, through midnight ET on Thursday, January 31, by dialing 1-888-286-8010 (international: 617-801-6888) and entering the passcode 27713068. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation

Zions Bancorporation is one of the nation’s premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through over 500 offices and approximately 600 ATMs in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

Statements in this news release that are based on other than historical data are forward-looking, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company’s ability

 

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ZIONS BANCORPORATION

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January 24, 2008

 

to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations, including changes in asset-backed commercial paper markets and valuations in structured securities and other assets; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2006 Annual Report on Form 10-K of Zions Bancorporation filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site ( http://www.sec.gov ).

The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 9

FINANCIAL HIGHLIGHTS

(Unaudited)

 

 

    

Three Months Ended

December 31,

   

Years Ended

December 31,

(In thousands, except per share and ratio data)    2007    2006    % Change    2007    2006    % Change

EARNINGS

                  

Taxable-equivalent net interest income

    $   485,157       $   465,267       4.27 %    $   1,908,053       $   1,788,958       6.66 %

Taxable-equivalent revenue

      464,923         605,148       (23.17)%      2,320,397         2,340,167       (0.84)%

Net interest income

      478,885         459,039       4.32 %      1,881,952         1,764,724       6.64 %

Noninterest income

      (20,234)        139,881       (114.47)%      412,344         551,209       (25.19)%

Provision for loan losses

      69,982         26,675       162.35 %      152,210         72,572       109.74 %

Noninterest expense

      352,966         342,926       2.93 %      1,404,588         1,330,437       5.57 %

Income before income taxes and minority interest

      35,703         229,319       (84.43)%      737,498         912,924       (19.22)%

Income taxes (benefit)

      (11,035)        80,081       (113.78)%      235,737         317,950       (25.86)%

Minority interest

      1,197         2,730       56.15 %      8,016         11,849       32.35 %

Net income

      45,541         146,508       (68.92)%      493,745         583,125       (15.33)%

Net earnings applicable to common shareholders

      42,198         142,673       (70.42)%      479,422         579,290       (17.24)%

PER COMMON SHARE

                  

Net earnings (diluted)

      0.39         1.32       (70.45)%      4.42         5.36       (17.54)%

Dividends

      0.43         0.39       10.26 %      1.68         1.47       14.29 %

Book value per common share

               47.17         44.48       6.05 %

SELECTED RATIOS

                  

Return on average assets

      0.35%      1.27%         1.01%      1.32%   

Return on average common equity

      3.29%      12.08%         9.57%      12.89%   

Efficiency ratio

      75.92%      56.67%         60.53%      56.85%   

Net interest margin

      4.27%      4.60%         4.43%      4.63%   

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

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FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

 

 

    

Three Months Ended

December 31,

   

Years Ended

December 31,

(In thousands, except share and ratio data)    2007    2006    % Change    2007    2006    % Change

AVERAGE BALANCES

                  

Total assets

    $     50,941,152       $     45,818,165       11.18 %    $     48,847,219       $     44,241,772       10.41 %

Total interest-earning assets

      45,106,413         40,154,556       12.33 %      43,048,458         38,668,036       11.33 %

Securities

      5,188,980         5,627,906       (7.80)%      5,406,682         5,793,985       (6.68)%

Net loans and leases

      38,450,974         34,059,617       12.89 %      36,808,146         32,395,359       13.62 %

Goodwill

      2,009,022         1,895,860       5.97 %      2,005,245         1,887,335       6.25 %

Core deposit and other intangibles

      162,679         168,547       (3.48)%      180,783         181,316       (0.29)%

Total deposits

      36,381,125         33,853,608       7.47 %      35,823,969         32,759,623       9.35 %

Core deposits (1)

      31,863,057         29,763,841       7.05 %      31,044,782         29,487,936       5.28 %

Minority interest

      32,343         40,471       (20.08)%      36,385         33,803       7.64 %

Shareholders’ equity:

                  

Preferred equity

      240,000         65,216       268.01 %      240,000         16,438       1,360.03 %

Common equity

      5,094,138         4,685,507       8.72 %      5,007,627         4,493,042       11.45 %

Weighted average common and common-equivalent shares outstanding

      106,902,983         108,221,096       (1.22)%      108,522,864         108,028,075       0.46 %

AT PERIOD END

                  

Total assets

             $ 52,947,414       $ 46,970,226       12.73 %

Total interest-earning assets

               46,448,887         40,804,299       13.83 %

Securities

               5,860,900         5,767,467       1.62 %

Net loans and leases

               39,087,779         34,667,556       12.75 %

Sold loans being serviced (2)

               1,885,132         2,586,451       (27.12)%

Allowance for loan losses

               459,376         365,150       25.80 %

Reserve for unfunded lending commitments

               21,530         19,368       11.16 %

Goodwill

               2,009,513         1,900,517       5.74 %

Core deposit and other intangibles

               149,493         162,134       (7.80)%

Total deposits

               36,922,753         34,981,746       5.55 %

Core deposits (1)

               32,531,165         30,679,690       6.03 %

Minority interest

               30,939         42,791       (27.70)%

Shareholders’ equity:

                  

Preferred equity

               240,000         240,000       –      

Common equity

               5,052,800         4,747,023       6.44 %

Common shares outstanding

               107,116,505         106,720,884       0.37 %

Average equity to average assets

      10.47%      10.37%         10.74%      10.19%   

Common dividend payout

      108.88%      29.51%         37.82%      27.10%   

Tangible equity ratio

               6.17%      6.51%   

Nonperforming assets

               283,854         81,994       246.19 %

Accruing loans past due 90 days or more

               77,419         43,727       77.05 %

Nonperforming assets to net loans and leases and other real estate owned at period end

               0.73%      0.24%   

 

(1) Amount consists of total deposits excluding time deposits $100,000 and over.
(2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

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FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

 

     Three Months Ended
     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands, except per share and ratio data)    2007    2007    2007    2007    2006

EARNINGS

               

Taxable-equivalent net interest income

    $   485,157       $   483,115       $   476,060       $   463,721       $   465,267   

Taxable-equivalent revenue

      464,923         628,938         617,401         609,135         605,148   

Net interest income

      478,885         476,637         469,347         457,083         459,039   

Noninterest income

      (20,234)        145,823         141,341         145,414         139,881   

Provision for loan losses

      69,982         55,354         17,763         9,111         26,675   

Noninterest expense

      352,966         352,031         347,612         351,979         342,926   

Income before income taxes and minority interest

      35,703         215,075         245,313         241,407         229,319   

Income taxes (benefit)

      (11,035)        71,853         86,065         88,854         80,081   

Minority interest

      1,197         7,490         34         (705)        2,730   

Net income

      45,541         135,732         159,214         153,258         146,508   

Net earnings applicable to common shareholders

      42,198         131,962         155,607         149,655         142,673   

PER COMMON SHARE

               

Net earnings (diluted)

      0.39         1.22         1.43         1.36         1.32   

Dividends

      0.43         0.43         0.43         0.39         0.39   

Book value per common share

      47.17         46.92         46.14         46.04         44.48   

SELECTED RATIOS

               

Return on average assets

      0.35%      1.10%      1.33%      1.31%      1.27%

Return on average common equity

      3.29%      10.50%      12.50%      12.25%      12.08%

Efficiency ratio

      75.92%      55.97%      56.30%      57.78%      56.67%

Net interest margin

      4.27%      4.44%      4.53%      4.51%      4.60%

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

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FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

 

     Three Months Ended
     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands, except share and ratio data)    2007    2007    2007    2007    2006

AVERAGE BALANCES

               

Total assets

    $      50,941,152       $      48,903,319       $      47,921,787       $      47,478,985       $      45,818,165   

Total interest-earning assets

      45,106,413         43,200,858         42,151,667         41,695,743         40,154,556   

Securities

      5,188,980         5,221,722         5,426,896         5,797,856         5,627,906   

Net loans and leases

      38,450,974         37,194,850         36,142,957         35,406,094         34,059,617   

Goodwill

      2,009,022         2,015,532         2,012,270         1,983,765         1,895,860   

Core deposit and other intangibles

      162,679         177,864         188,843         194,124         168,547   

Total deposits

      36,381,125         35,756,600         35,964,203         35,181,504         33,853,608   

Core deposits (1)

      31,863,057         31,067,905         30,873,001         30,358,375         29,763,841   

Minority interest

      32,343         37,527         35,009         40,741         40,471   

Shareholders’ equity:

               

Preferred equity

      240,000         240,000         240,000         240,000         65,216   

Common equity

      5,094,138         4,987,275         4,993,383         4,954,400         4,685,507   

Weighted average common and common-equivalent shares outstanding

      106,902,983         107,879,963         109,123,735         110,106,637         108,221,096   

AT PERIOD END

               

Total assets

    $ 52,947,414       $ 50,044,686       $ 48,691,445       $ 48,558,866       $ 46,970,226   

Total interest-earning assets

      46,448,887         44,104,956         42,721,118         42,538,513         40,804,299   

Securities

      5,860,900         5,261,057         5,289,180         5,608,927         5,767,467   

Net loans and leases

      39,087,779         37,822,259         36,788,205         35,944,848         34,667,556   

Sold loans being serviced (2)

      1,885,132         2,022,142         2,201,897         2,401,355         2,586,451   

Allowance for loan losses

      459,376         418,165         380,295         371,213         365,150   

Reserve for unfunded lending commitments

      21,530         21,394         21,222         20,000         19,368   

Goodwill

      2,009,513         2,021,519         2,013,314         2,011,889         1,900,517   

Core deposit and other intangibles

      149,493         172,140         180,867         192,677         162,134   

Total deposits

      36,922,753         35,774,713         36,185,572         36,325,739         34,981,746   

Core deposits (1)

      32,531,165         31,239,069         31,303,578         31,238,791         30,679,690   

Minority interest

      30,939         37,411         32,094         38,691         42,791   

Shareholders’ equity:

               

Preferred equity

      240,000         240,000         240,000         240,000         240,000   

Common equity

      5,052,800         5,016,980         4,984,702         5,021,170         4,747,023   

Common shares outstanding

      107,116,505         106,934,360         108,034,079         109,052,149         106,720,884   

Average equity to average assets

      10.47%      10.69%      10.92%      10.94%      10.37%

Common dividend payout

      108.88%      34.96%      29.88%      28.57%      29.51%

Tangible equity ratio

      6.17%      6.40%      6.52%      6.59%      6.51%

Nonperforming assets

      283,854         196,575         95,398         82,524         81,994   

Accruing loans past due 90 days or more

      77,419         64,516         47,782         56,880         43,727   

Nonperforming assets to net loans and leases and other real estate owned at period end

      0.73%      0.52%      0.26%      0.23%      0.24%

 

(1) Amount consists of total deposits excluding time deposits $100,000 and over.
(2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 13

CONSOLIDATED BALANCE SHEETS

 

     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands, except share amounts)    2007    2007    2007    2007    2006
     (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)     

ASSETS

               

Cash and due from banks

    $ 1,855,155     $ 1,481,238     $ 1,640,946     $ 1,574,519     $ 1,938,810 

Money market investments:

               

Interest-bearing deposits and commercial paper

      726,446       513,395       39,881       17,325       43,203 

Federal funds sold

      102,225       23,567       120,959       527,691       55,658 

Security resell agreements

      671,537       484,678       482,893       439,722       270,415 

Investment securities:

               

Held to maturity, at cost (approximate market value $702,148, $686,026, $685,521, $663,474 and $648,828)

      704,441       695,842       702,189       667,269       653,124 

Available for sale, at market

      5,134,610       4,549,721       4,564,183       4,909,220       5,050,907 

Trading account, at market (includes $741, $22, $1,745, $1,095 and $34,494 transferred as collateral under repurchase agreements)

      21,849       15,494       22,808       32,438       63,436 
                                  
     5,860,900       5,261,057       5,289,180       5,608,927       5,767,467 

Loans:

               

Loans held for sale

      207,943       200,653       226,041       266,880       252,818 

Loans and leases

      39,044,163       37,778,228       36,715,752       35,832,061       34,566,118 
                                  
     39,252,106       37,978,881       36,941,793       36,098,941       34,818,936 

Less:

               

Unearned income and fees, net of related costs

      164,327       156,622       153,588       154,093       151,380 

Allowance for loan losses

      459,376       418,165       380,295       371,213       365,150 
                                  

Loans and leases, net of allowance

      38,628,403       37,404,094       36,407,910       35,573,635       34,302,406 

Other noninterest-bearing investments

      1,034,412       1,043,475       972,830       988,015       1,022,383 

Premises and equipment, net

      655,712       658,294       648,731       645,391       609,472 

Goodwill

      2,009,513       2,021,519       2,013,314       2,011,889       1,900,517 

Core deposit and other intangibles

      149,493       172,140       180,867       192,677       162,134 

Other real estate owned

      15,201       11,973       10,646       9,682       9,250 

Other assets

      1,238,417       969,256       883,288       969,393       888,511 
                                  
   $ 52,947,414     $ 50,044,686     $ 48,691,445     $ 48,558,866     $ 46,970,226 
                                  

LIABILITIES AND SHAREHOLDERS’ EQUITY

               

Deposits:

               

Noninterest-bearing demand

    $ 9,618,300     $ 9,322,668     $ 9,857,638     $ 9,761,255     $ 10,010,310 

Interest-bearing:

               

Savings and money market

      14,812,062       14,811,615       14,712,294       15,003,091       14,673,478 

Internet money market

      2,163,014       1,707,544       1,544,031       1,464,535       1,185,409 

Time under $100,000

      2,562,363       2,599,595       2,535,881       2,485,720       2,257,967 

Time $100,000 and over

      4,391,588       4,535,644       4,881,994       5,086,948       4,302,056 

Foreign

      3,375,426       2,797,647       2,653,734       2,524,190       2,552,526 
                                  
     36,922,753       35,774,713       36,185,572       36,325,739       34,981,746 

Securities sold, not yet purchased

      224,269       21,036       28,456       190,878       175,993 

Federal funds purchased

      2,463,460       2,391,805       2,221,887       2,132,682       1,993,483 

Security repurchase agreements

      1,298,112       1,070,702       1,061,598       924,922       934,057 

Other liabilities

      644,375       560,853       602,173       662,589       621,922 

Commercial paper

      297,850       411,007       228,607       186,978       220,507 

Federal Home Loan Bank advances and other borrowings:

               

One year or less

      3,181,990       2,037,644       664,509       323,598       517,925 

Over one year

      127,612       128,218       128,832       129,446       137,058 

Long-term debt

      2,463,254       2,354,317       2,313,015       2,382,173       2,357,721 
                                  

Total liabilities

      47,623,675       44,750,295       43,434,649       43,259,005       41,940,412 
                                  

Minority interest

      30,939       37,411       32,094       38,691       42,791 

Shareholders’ equity:

               

Capital stock:

               

Preferred stock, without par value, authorized 3,000,000 shares:

               

Series A (liquidation preference $1,000 per share); issued and outstanding 240,000 shares

      240,000       240,000       240,000       240,000       240,000 

Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 107,116,505, 106,934,360, 108,034,079, 109,052,149 and 106,720,884 shares

      2,212,237       2,200,228       2,279,722       2,381,509       2,230,303 

Retained earnings

      2,910,692       2,914,439       2,828,613       2,719,502       2,602,189 

Accumulated other comprehensive income (loss)

      (58,835)      (86,914)      (112,840)      (69,257)      (75,849)

Deferred compensation

      (11,294)      (10,773)      (10,793)      (10,584)      (9,620)
                                  

Total shareholders’ equity

      5,292,800       5,256,980       5,224,702       5,261,170       4,987,023 
                                  
   $   52,947,414     $   50,044,686     $   48,691,445     $   48,558,866     $   46,970,226 
                                  

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 14

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

     Three Months Ended
     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands, except per share amounts)    2007    2007    2007    2007    2006

Interest income:

               

Interest and fees on loans

    $   727,185     $   724,598     $   697,022    $   674,577     $   665,791 

Interest on loans held for sale

      2,975       3,695       4,322      3,875       4,066 

Lease financing

      5,782       5,461       5,234      5,206       4,974 

Interest on money market investments

      18,760       10,841       7,756      6,342       6,116 

Interest on securities:

               

Held to maturity – taxable

      2,387       2,343       2,064      2,203       2,220 

Held to maturity – nontaxable

      6,430       6,402       6,227      6,091       5,963 

Available for sale – taxable

      61,459       61,248       63,825      68,507       68,075 

Available for sale – nontaxable

      2,070       2,274       2,398      2,458       2,083 

Trading account

      471       880       766      1,192       2,009 
                                  

Total interest income

      827,519       817,742       789,614      770,451       761,297 
                                  

Interest expense:

               

Interest on savings and money market deposits

      125,382       123,586       117,295      113,103       112,105 

Interest on time and foreign deposits

      119,242       119,781       120,445      112,885       102,025 

Interest on short-term borrowings

      67,601       59,034       43,369      48,692       45,504 

Interest on long-term debt

      36,409       38,704       39,158      38,688       42,624 
                                  

Total interest expense

      348,634       341,105       320,267      313,368       302,258 
                                  

Net interest income

      478,885       476,637       469,347      457,083       459,039 

Provision for loan losses

      69,982       55,354       17,763      9,111       26,675 
                                  

Net interest income after provision for loan losses

      408,903       421,283       451,584      447,972       432,364 
                                  

Noninterest income:

               

Service charges and fees on deposit accounts

      48,130       46,919       45,116      43,385       41,628 

Loan sales and servicing income

      8,640       11,607       8,998      9,258       12,332 

Other service charges, commissions and fees

      50,128       51,623       49,911      45,153       45,645 

Trust and wealth management income

      10,151       9,040       9,125      8,216       8,057 

Income from securities conduit

      2,472       3,221       5,968      6,515       7,567 

Dividends and other investment income

      13,830       14,720       11,271      11,093       10,360 

Trading and nonhedge derivative income (loss)

      (2,125)      (5,218)      5,224      5,200       4,991 

Equity securities gains, net

      1,349       11,072       100      5,198       5,875 

Fixed income securities gains (losses), net

      (753)      58       13      3,701       (554)

Impairment losses on AFS securities and valuation losses on securities purchased from Lockhart Funding

      (158,208)      –         –        –         –   

Other

      6,152       2,781       5,615      7,695       3,980 
                                  

Total noninterest income

      (20,234)      145,823       141,341      145,414       139,881 
                                  

Noninterest expense:

               

Salaries and employee benefits

      191,141       204,488       198,668      205,587       189,627 

Occupancy, net

      27,312       27,203       26,334      26,589       25,170 

Furniture and equipment

      24,917       23,996       24,272      23,267       22,623 

Legal and professional services

      12,132       10,918       11,242      9,537       11,234 

Postage and supplies

      9,416       10,024       9,025      8,047       8,402 

Advertising

      6,322       6,624       7,517      6,457       7,100 

Debt extinguishment cost

      –         –         –        89       7,261 

Merger related expense

      687       682       1,491      2,406       2,199 

Amortization of core deposit and other intangibles

      10,459       11,495       11,812      11,129       10,899 

Provision for unfunded lending commitments

      136       172       1,222      306       731 

Other

      70,444       56,429       56,029      58,565       57,680 
                                  

Total noninterest expense

      352,966       352,031       347,612      351,979       342,926 
                                  

Income before income taxes and minority interest

      35,703       215,075       245,313      241,407       229,319 

Income taxes (benefit)

      (11,035)      71,853       86,065      88,854       80,081 

Minority interest

      1,197       7,490       34      (705)      2,730 
                                  

Net income

      45,541       135,732       159,214      153,258       146,508 

Preferred stock dividend

      3,343       3,770       3,607      3,603       3,835 
                                  

Net earnings applicable to common shareholders

    $ 42,198     $ 131,962     $ 155,607    $ 149,655     $ 142,673 
                                  

Weighted average common shares outstanding during the period:

               

Basic shares

      106,454       106,814       107,803      108,414      106,457 

Diluted shares

      106,903       107,880       109,124      110,107      108,221 

Net earnings per common share:

               

Basic

    $ 0.40     $ 1.24     $ 1.44    $ 1.38    $ 1.34 

Diluted

      0.39       1.22       1.43      1.36      1.32 

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 15

CONSOLIDATED STATEMENTS OF INCOME (Continued)

(Unaudited)

 

     Years Ended
December 31,
(In thousands, except per share amounts)    2007    2006

Interest income:

      

Interest and fees on loans

    $   2,823,382     $   2,438,324

Interest on loans held for sale

      14,867       16,442

Lease financing

      21,683       18,290

Interest on money market investments

      43,699       24,714

Interest on securities:

      

Held to maturity – taxable

      8,997       8,861

Held to maturity – nontaxable

      25,150       22,909

Available for sale – taxable

      255,039       272,252

Available for sale – nontaxable

      9,200       8,630

Trading account

      3,309       7,699
             

Total interest income

      3,205,326       2,818,121
             

Interest expense:

      

Interest on savings and money market deposits

      479,366       405,269

Interest on time and foreign deposits

      472,353       315,569

Interest on short-term borrowings

      218,696       164,335

Interest on long-term debt

      152,959       168,224
             

Total interest expense

      1,323,374       1,053,397
             

Net interest income

      1,881,952       1,764,724

Provision for loan losses

      152,210       72,572
             

Net interest income after provision for loan losses

      1,729,742       1,692,152
             

Noninterest income:

      

Service charges and fees on deposit accounts

      183,550       160,774

Loan sales and servicing income

      38,503       54,193

Other service charges, commissions and fees

      196,815       171,767

Trust and wealth management income

      36,532       29,970

Income from securities conduit

      18,176       32,206

Dividends and other investment income

      50,914       39,918

Trading and nonhedge derivative income

      3,081       18,501

Equity securities gains, net

      17,719       17,841

Fixed income securities gains, net

      3,019       6,416

Impairment losses on AFS securities and valuation losses on securities purchased from Lockhart Funding

      (158,208)      –  

Other

      22,243       19,623
             

Total noninterest income

      412,344       551,209
             

Noninterest expense:

      

Salaries and employee benefits

      799,884       751,679

Occupancy, net

      107,438       99,607

Furniture and equipment

      96,452       88,725

Legal and professional services

      43,829       40,134

Postage and supplies

      36,512       33,076

Advertising

      26,920       26,465

Debt extinguishment cost

      89       7,261

Impairment losses on long-lived assets

      –         1,304

Merger related expense

      5,266       20,461

Amortization of core deposit and other intangibles

      44,895       43,000

Provision for unfunded lending commitments

      1,836       1,248

Other

      241,467       217,477
             

Total noninterest expense

      1,404,588       1,330,437
             

Income before income taxes and minority interest

      737,498       912,924

Income taxes

      235,737       317,950

Minority interest

      8,016       11,849
             

Net income

      493,745       583,125

Preferred stock dividend

      14,323       3,835
             

Net earnings applicable to common shareholders

    $ 479,422     $ 579,290
             

Weighted average common shares outstanding during the period:

      

Basic shares

      107,365       106,057

Diluted shares

      108,523       108,028

Net earnings per common share:

      

Basic

    $ 4.47     $ 5.46

Diluted

      4.42       5.36

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 16

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

(Unaudited)

 

     Preferred    Common    Retained    Accumulated
other
comprehensive		    Deferred    Total
shareholders’
(In thousands, except per share amounts)    stock    stock    earnings    income (loss)    compensation    equity

Balance, December 31, 2006

    $   240,000    $   2,230,303     $   2,602,189     $   (75,849)    $   (9,620)    $   4,987,023 

Cumulative effect of change in accounting principle, adoption of FIN 48

            10,408             10,408 

Comprehensive income:

                  

Net income

            493,745             493,745 

Other comprehensive income, net of tax:

                  

Net realized and unrealized holding losses on investments and retained interests

               (181,815)      

Foreign currency translation

               (6)      

Reclassification for net realized losses on investments recorded in operations

               91,426       

Net unrealized gains on derivative instruments

               106,929       

Pension and postretirement

               480       
                     

Other comprehensive income

               17,014          17,014 
                     

Total comprehensive income

                     510,759 

Stock redeemed and retired

         (322,025)               (322,025)

Net stock options exercised

         70,278                70,278 

Common stock issued in acquisition

         206,075                206,075 

Share-based compensation

         27,606                27,606 

Dividends declared on preferred stock

            (14,323)            (14,323)

Cash dividends on common stock, $1.68 per share

            (181,327)            (181,327)

Change in deferred compensation

                  (1,674)      (1,674)
                                         

Balance, December 31, 2007

    $ 240,000    $ 2,212,237     $ 2,910,692     $ (58,835)    $ (11,294)    $ 5,292,800 
                                         

Balance, December 31, 2005

    $ –      $ 2,156,732     $ 2,179,885     $ (83,043)    $ (16,310)    $ 4,237,264 

Comprehensive income:

                  

Net income

            583,125             583,125 

Other comprehensive income, net of tax:

                  

Net realized and unrealized holding losses on investments and retained interests

               (7,684)      

Foreign currency translation

               715       

Reclassification for net realized gains on investments recorded in operations

               (630)      

Net unrealized gains on derivative instruments

               8,548       

Pension and postretirement

               6,245       
                     

Other comprehensive income

               7,194          7,194 
                     

Total comprehensive income

                     590,319 

Issuance of preferred stock

      240,000      (4,167)               235,833 

Stock redeemed and retired

         (26,483)               (26,483)

Net stock options exercised

         91,647                91,647 

Reclassification of deferred compensation, adoption of SFAS 123R

         (11,111)            11,111       –   

Share-based compensation

         23,685                23,685 

Dividends declared on preferred stock

            (3,835)            (3,835)

Cash dividends on common stock, $1.47 per share

            (156,986)            (156,986)

Change in deferred compensation

                  (4,421)      (4,421)
                                         

Balance, December 31, 2006

    $ 240,000    $ 2,230,303     $ 2,602,189     $ (75,849)    $ (9,620)    $ 4,987,023 
                                         

Total comprehensive income for the three months ended December 31, 2007 and 2006 was $73,620 and $159,951, respectively.

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 17

 

Nonperforming Assets

(Unaudited)

 

     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands)    2007    2007    2007    2007    2006

Nonaccrual loans

    $ 258,513       $ 174,315       $ 82,314       $ 69,580       $ 66,405   

Restructured loans

      10,140         10,287         2,438         132         164   

Other real estate owned

      15,201         11,973         10,646         9,682         9,250   

Other assets

      –           –           –           3,130         6,175   
                                  

Total

    $ 283,854       $ 196,575       $ 95,398       $ 82,524       $ 81,994   
                                  

% of net loans and leases* and other real estate owned

      0.73%      0.52%      0.26%      0.23%      0.24%

Accruing loans past due 90 days or more

    $ 77,419       $ 64,516       $ 47,782       $ 56,880       $ 43,727   
                                  

% of net loans and leases*

      0.20%      0.17%      0.13%      0.16%      0.13%
*Includes loans held for sale.               

Allowance and Reserve for Credit Losses

(Unaudited)

               
     Three Months Ended
     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands)    2007    2007    2007    2007    2006

Allowance for Loan Losses

               

Balance at beginning of period

    $   418,165       $   380,295       $   371,213       $   365,150       $   356,342   

Allowance of company acquired

      –           578         –           7,061         –     

Allowance of branches sold

      (2,034)        –           –           –           –     

Add:

               

Provision for losses

      69,982         55,354         17,763         9,111         26,675   

Deduct:

               

Loan and lease charge-offs

      (30,023)        (20,815)        (13,767)        (14,079)        (23,219)  

Recoveries

      3,286         2,753         5,086         3,970         5,352   
                                  

Net loan and lease charge-offs

      (26,737)        (18,062)        (8,681)        (10,109)        (17,867)  
                                  

Balance at end of period

    $ 459,376       $ 418,165       $ 380,295       $ 371,213       $ 365,150   
                                  

Ratio of allowance for loan losses to net loans and leases outstanding at period end

      1.18%      1.11%      1.03%      1.03%      1.05%

Ratio of allowance for loan losses to nonperforming loans at period end

      170.99%      226.52%      448.72%      532.50%      548.53%

Reserve for Unfunded Lending Commitments

               

Balance at beginning of period

    $ 21,394       $ 21,222       $ 20,000       $ 19,368       $ 18,637   

Reserve of company acquired

      –           –           –           326         –     

Provision charged against earnings

      136         172         1,222         306         731   
                                  

Balance at end of period

    $ 21,530       $ 21,394       $ 21,222       $ 20,000       $ 19,368   
                                  

Total Allowance and Reserve for Credit Losses

               

Allowance for loan losses

    $ 459,376       $ 418,165       $ 380,295       $ 371,213       $ 365,150   

Reserve for unfunded lending commitments

      21,530         21,394         21,222         20,000         19,368   
                                  

Total allowance and reserve for credit losses

    $ 480,906       $ 439,559       $ 401,517       $ 391,213       $ 384,518   
                                  

Ratio of total allowance and reserve for credit losses to net loans and leases outstanding at period end

      1.23%      1.16%      1.09%      1.09%      1.11%

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 18

 

Sold Loans Being Serviced

(Unaudited)

 

     Three Months Ended
     December 31,    September 30,    June 30,    March 31,    December 31,
(In thousands)    2007    2007    2007    2007    2006

Balance at beginning of period

    $   2,022,142     $   2,201,897     $   2,401,355     $   2,586,451     $   2,796,644 

New loans sold

      25,234       8,162       19,173       10,931       30,061 

Payments and other reductions

      (162,244)      (187,917)      (218,631)      (196,027)      (240,254)
                                  

Balance at end of period

    $ 1,885,132     $ 2,022,142     $ 2,201,897     $ 2,401,355     $ 2,586,451 
                                  

Loan Balances By Portfolio Type

(Unaudited)

               
     December 31,    September 30,    June 30,    March 31,    December 31,
(In millions)    2007    2007    2007    2007    2006

Loans held for sale

    $ 208     $ 201     $ 226     $ 267     $ 253 

Commercial lending:

               

Commercial and industrial

      9,811       9,260       8,922       8,420       8,422 

Leasing

      503       474       450       447       443 

Owner occupied

      7,604       7,347       7,123       6,867       6,260 
                                  

Total commercial lending

      17,918       17,081       16,495       15,734       15,125 

Commercial real estate:

               

Construction and land development

      8,315       8,322       7,963       7,739       7,483 

Term

      5,276       5,054       5,084       5,215       4,952 
                                  

Total commercial real estate

      13,591       13,376       13,047       12,954       12,435 

Consumer:

               

Home equity credit line and other consumer real estate

      2,203       2,107       2,042       1,935       1,850 

1-4 family residential

      4,206       4,178       4,134       4,176       4,192 

Bankcard and other revolving plans

      347       299       306       289       295 

Other

      452       467       456       465       457 
                                  

Total consumer

      7,208       7,051       6,938       6,865       6,794 

Foreign loans

      26       27       12       3       3 

Other receivables

      301       243       224       276       209 
                                  

Total loans

    $ 39,252     $ 37,979     $ 36,942     $ 36,099     $ 34,819 
                                  

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 19

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

 

     Three Months Ended
December 31, 2007		    Three Months Ended
September 30, 2007
(In thousands)    Average
balance		    Amount of
interest (1)		    Average
rate		    Average
balance		    Amount of
interest (1)		    Average
rate

ASSETS

                  

Money market investments

    $    1,466,459     $    18,760    5.08%    $        784,286     $    10,841    5.48%

Securities:

                  

Held to maturity

      699,216       12,279    6.97%      701,587       12,192    6.89%

Available for sale

      4,449,346       64,644    5.76%      4,462,480       64,746    5.76%

Trading account

      40,418       471    4.62%      57,655       880    6.06%
                                 

Total securities

      5,188,980       77,394    5.92%      5,221,722       77,818    5.91%
                                     

Loans:

                  

Loans held for sale

      195,597       2,975    6.03%      235,345       3,695    6.23%

Net loans and leases (2)

      38,255,377       734,662    7.62%      36,959,505       731,866    7.86%
                                 

Total loans and leases

      38,450,974       737,637    7.61%      37,194,850       735,561    7.85%
                                 

Total interest-earning assets

      45,106,413       833,791    7.33%      43,200,858       824,220    7.57%
                         

Cash and due from banks

      1,407,714             1,421,895       

Allowance for loan losses

      (424,413)            (390,078)      

Goodwill

      2,009,022             2,015,532       

Core deposit and other intangibles

      162,679             177,864       

Other assets

      2,679,737             2,477,248       
                         

Total assets

    $ 50,941,152           $ 48,903,319       
                         

LIABILITIES

                  

Interest-bearing deposits:

                  

Savings and NOW

    $ 4,415,558       11,219    1.01%    $ 4,337,513       9,942    0.91%

Money market

      10,440,278       90,141    3.43%      10,466,124       93,156    3.53%

Internet money market

      2,011,599       24,022    4.74%      1,619,423       20,488    5.02%

Time under $100,000

      2,582,100       28,783    4.42%      2,577,033       28,831    4.44%

Time $100,000 and over

      4,518,068       54,210    4.76%      4,688,695       57,710    4.88%

Foreign

      3,123,521       36,249    4.60%      2,703,397       33,240    4.88%
                                 

Total interest-bearing deposits

      27,091,124       244,624    3.58%      26,392,185       243,367    3.66%
                                 

Borrowed funds:

                  

Securities sold, not yet purchased

      26,643       299    4.45%      20,673       252    4.84%

Federal funds purchased and security repurchase agreements

      3,528,741       37,528    4.22%      3,350,693       40,123    4.75%

Commercial paper

      356,835       4,795    5.33%      293,432       4,063    5.49%

FHLB advances and other borrowings:

                  

One year or less

      2,106,015       24,979    4.71%      1,115,750       14,596    5.19%

Over one year

      127,898       1,851    5.74%      128,534       1,862    5.75%

Long-term debt

      2,389,808       34,558    5.74%      2,329,325       36,842    6.28%
                                 

Total borrowed funds

      8,535,940       104,010    4.83%      7,238,407       97,738    5.36%
                                 

Total interest-bearing liabilities

      35,627,064       348,634    3.88%      33,630,592       341,105    4.02%
                         

Noninterest-bearing deposits

      9,290,001             9,364,415       

Other liabilities

      657,606             643,510       
                         

Total liabilities

      45,574,671             43,638,517       

Minority interest

      32,343             37,527       

Shareholders’ equity:

                  

Preferred equity

      240,000             240,000       

Common equity

      5,094,138             4,987,275       
                         

Total shareholders’ equity

      5,334,138             5,227,275       
                         

Total liabilities and shareholders’ equity

    $ 50,941,152           $ 48,903,319       
                         

Spread on average interest-bearing funds

          3.45%          3.55%

Taxable-equivalent net interest income and net yield

    on interest-earning assets

       $ 485,157    4.27%       $ 483,115    4.44%
                             

 

(1) Taxable-equivalent rates used where applicable.
(2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 20

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

 

     Year Ended
December 31, 2007		    Year Ended
December 31, 2006
(In thousands)    Average
balance		    Amount of
interest (1)		    Average
rate		    Average
balance		    Amount of
interest (1)		    Average
rate

ASSETS

                  

Money market investments

    $        833,630     $   43,699    5.24%    $        478,692     $ 24,714    5.16%

Securities:

                  

Held to maturity

      684,180       47,689    6.97%      645,342       44,106    6.83%

Available for sale

      4,661,271       269,193    5.78%      4,991,846       285,529    5.72%

Trading account

      61,231       3,309    5.40%      156,797       7,699    4.91%
                                 

Total securities

      5,406,682       320,191    5.92%      5,793,985       337,334    5.82%
                                     

Loans:

                  

Loans held for sale

      233,565       14,867    6.37%      261,103       16,442    6.30%

Net loans and leases (2)

      36,574,581       2,852,670    7.80%      32,134,256       2,463,865    7.67%
                                 

Total loans and leases

      36,808,146       2,867,537    7.79%      32,395,359       2,480,307    7.66%
                                 

Total interest-earning assets

      43,048,458       3,231,427    7.51%      38,668,036       2,842,355    7.35%
                         

Cash and due from banks

      1,476,664             1,475,405       

Allowance for loan losses

      (391,285)            (349,567)      

Goodwill

      2,005,245             1,887,335       

Core deposit and other intangibles

      180,783             181,316       

Other assets

      2,527,354             2,379,247       
                         

Total assets

    $ 48,847,219           $ 44,241,772       
                         

LIABILITIES

                  

Interest-bearing deposits:

                  

Savings and NOW

    $ 4,443,072       41,400    0.93%    $ 4,179,620       30,845    0.74%

Money market

      10,350,586       358,126    3.46%      10,684,281       328,245    3.07%

Internet money market

      1,611,420       79,840    4.95%      985,735       46,179    4.68%

Time under $100,000

      2,528,429       110,722    4.38%      2,065,506       77,461    3.75%

Time $100,000 and over

      4,779,187       231,202    4.84%      3,271,687       142,630    4.36%

Foreign

      2,709,997       130,429    4.81%      2,065,234       95,478    4.62%
                                 

Total interest-bearing deposits

      26,422,691       951,719    3.60%      23,252,063       720,838    3.10%
                                 

Borrowed funds:

                  

Securities sold, not yet purchased

      29,821       1,359    4.56%      65,490       2,995    4.57%

Federal funds purchased and security repurchase agreements

      3,211,117       148,506    4.62%      2,837,708       124,647    4.39%

Commercial paper

      256,377       13,870    5.41%      219,747       11,437    5.20%

FHLB advances and other borrowings:

                  

One year or less

      1,099,105       54,961    5.00%      479,272       25,256    5.27%

Over one year

      130,512       7,537    5.77%      148,417       8,608    5.80%

Long-term debt

      2,364,846       145,422    6.15%      2,491,316       159,616    6.41%
                                 

Total borrowed funds

      7,091,778       371,655    5.24%      6,241,950       332,559    5.33%
                                 

Total interest-bearing liabilities

      33,514,469       1,323,374    3.95%      29,494,013       1,053,397    3.57%
                         

Noninterest-bearing deposits

      9,401,278             9,507,560       

Other liabilities

      647,460             696,916       
                         

Total liabilities

      43,563,207             39,698,489       

Minority interest

      36,385             33,803       

Shareholders’ equity:

                  

Preferred equity

      240,000             16,438       

Common equity

      5,007,627             4,493,042       
                         

Total shareholders’ equity

      5,247,627             4,509,480       
                         

Total liabilities and shareholders’ equity

    $ 48,847,219           $ 44,241,772       
                         

Spread on average interest-bearing funds

          3.56%          3.78%

Taxable-equivalent net interest income and net yield

    on interest-earning assets

       $   1,908,053    4.43%       $   1,788,958    4.63%
                         

 

(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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