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)
<TABLE>
<S> <C>
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
</TABLE>
ZIONS BANCORPORATION AND SUBSIDIARIES
<TABLE>
INDEX
<S> <C>
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
- - - ----------
</TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
(In thousands) 1994 1993
------------- --------------
<S> <C> <C>
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
========= ==========
</TABLE>
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
(In thousands) 1994 1993
------------- ------------
<S> <C> <C>
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
========== ==========
</TABLE>
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ----------------
(In thousands) 1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
===== ==== ===== ====
</TABLE>
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
(In thousands) 1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
======= ======= ========= =======
</TABLE>
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -----------------
(In thousands) 1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
======== ======== ======== ========
</TABLE>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
(In thousands) 1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
</TABLE>
ZIONS BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Twelve Months Ended
September 31, December 31,
----------------- -------------------
(In thousands) 1994 1993 1993
---- ---- ----
<S> <C> <C> <C>
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
======= ======= ========
</TABLE>
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
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
<S> <C> <C> <C> <C> <C> <C>
(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%
</TABLE>
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)
<TABLE>
<CAPTION>
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
-------- --------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
*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)
<TABLE>
<CAPTION>
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
-------- ---------- ------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
*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)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
(In thousands) 1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
========== ========= ========== =========
</TABLE>
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.
<TABLE>
<CAPTION>
(In thousands)
Types September 30, 1994 December 31, 1993
----- ------------------ -----------------
<S> <C> <C>
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
========= =========
</TABLE>
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.
<TABLE>
<CAPTION>
September 30, December 31,
-------------- ------------
(In thousands) 1994 1993 1993
---- ---- ----
<S> <C> <C> <C>
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.
</TABLE>
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.
<TABLE>
<CAPTION>
Twelve Months
Nine Months Ended Ended
(In thousands) September 30, December 31,
------------------ -----------------
1994 1993 1993
---- ---- ----
<S> <C> <C> <C>
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)%
</TABLE>
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
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
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.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 309,173
<INT-BEARING-DEPOSITS> 17,229
<FED-FUNDS-SOLD> 649,784
<TRADING-ASSETS> 230,720
<INVESTMENTS-HELD-FOR-SALE> 327,320
<INVESTMENTS-CARRYING> 974,686
<INVESTMENTS-MARKET> 969,646
<LOANS> 2,574,644
<ALLOWANCE> 66,847
<TOTAL-ASSETS> 5,228,382
<DEPOSITS> 3,628,273
<SHORT-TERM> 1,018,487
<LIABILITIES-OTHER> 64,728
<LONG-TERM> 162,564
<COMMON> 79,027
0
0
<OTHER-SE> 275,303
<TOTAL-LIABILITIES-AND-EQUITY> 5,228,382
<INTEREST-LOAN> 169,052
<INTEREST-INVEST> 89,872
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 258,924
<INTEREST-DEPOSIT> 64,558
<INTEREST-EXPENSE> 113,523
<INTEREST-INCOME-NET> 145,401
<LOAN-LOSSES> 1,197
<SECURITIES-GAINS> (254)
<EXPENSE-OTHER> 129,226
<INCOME-PRETAX> 69,948
<INCOME-PRE-EXTRAORDINARY> 46,421
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 46,521
<EPS-PRIMARY> 3.19
<EPS-DILUTED> 3.19
<YIELD-ACTUAL> 3.84
<LOANS-NON> 14,476
<LOANS-PAST> 2,912
<LOANS-TROUBLED> 571
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 68,461
<CHARGE-OFFS> 9,328
<RECOVERIES> 5,209
<ALLOWANCE-CLOSE> 66,847
<ALLOWANCE-DOMESTIC> 13,559
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 53,288
</TABLE>
