EXHIBIT 99.1
***FOR IMMEDIATE RELEASE***
| For: ZIONS BANCORPORATION | Contact: Clark Hinckley |
| One South Main, Suite 1134 | Tel: (801) 524-4787 |
| Salt Lake City, Utah | July 20, 2006 |
| Harris H. Simmons | |
| Chairman/Chief Executive Officer | |
ZIONS BANCORPORATION REPORTS RECORD EARNINGS OF
$1.35 PER DILUTED SHARE FOR SECOND QUARTER 2006
SALT LAKE CITY, July 20, 2006 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported second quarter net income of $145.3 million, or $1.35 per diluted share. Net income and earnings per share increased 22.3% and 3.8%, respectively, over the $118.8 million, or $1.30 per diluted share for the second quarter of 2005. The return on average common equity was 13.20% for the second quarter of 2006, up from 12.92% for the first quarter of 2006. The second quarter of 2006 includes after-tax merger related expense of $5.6 million ($0.05 per diluted share) related to the acquisition of Amegy Bancorporation, Inc. (“Amegy”) and the related systems conversion. All comparisons to the 2005 periods reflect the effects of the Amegy acquisition.
“We are pleased to again report record quarterly earnings, driven by very strong loan growth, a relatively stable net interest margin, and continued excellent credit quality,” said Harris H. Simmons, chairman and chief executive officer. “On balance sheet loans and leases grew $1.5 billion during the quarter, a record amount of growth, as economic activity remained strong throughout most of the West and Southwest,” continued Simmons. “During the quarter, we also completed the conversion of Amegy Bank systems, and anticipate that this conversion will result in improved efficiencies going forward.”
ZIONS BANCORPORATION
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July 20, 2006
Year-to-date net income for 2006 increased 23.5% to $282.9 million or $2.62 per diluted share compared to $229.0 million, or $2.50 per diluted share for the same period of 2005. The return on average common equity for the first six months of 2006 was 13.06% compared to 16.20% for the first six months of 2005.
Strong Loan Growth
On-balance-sheet net loans and leases were $32.7 billion at June 30, 2006, an increase of approximately $1.5 billion (19.8% annualized) from $31.1 billion at March 31, 2006, and an increase of 37.2% from $23.8 billion at June 30, 2005. Loan growth during the second quarter was in the commercial and commercial real estate categories and was widely diversified geographically.
Deposit Growth
Total deposits at June 30, 2006 increased $382 million to $33.3 billion, an annualized increase of 4.6% from $32.9 billion at March 31, 2006, and increased 36.3% over the balances reported one year ago. Core deposits decreased $327 million during the quarter to $29.9 billion compared to $30.2 billion at March 31, 2006. However, noninterest-bearing demand deposits increased $211 million or 8.5% annualized during the quarter. Decreases in other deposit categories were offset by growth in large time deposits.
Net Interest Income
Taxable-equivalent net interest income for the quarter was $442.3 million compared to $428.8 million for the first quarter of 2006 and $336.1 million for the second quarter of 2005. For the second quarter of 2006, the net interest margin was 4.64% compared to 4.69% for the first quarter of 2006 and 4.60% for the second quarter of 2005. The decreased net interest margin for the quarter resulted mainly from the robust loan growth being funded primarily by time deposits and Federal Home Loan Bank advances and other short-term borrowings.
ZIONS BANCORPORATION
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July 20, 2006
Noninterest Income
For the second quarter of 2006, noninterest income increased 7.2% to $137.8 million compared with $128.5 million for the first quarter of 2006, and 30.0% compared with $105.9 million for the second quarter of 2005. Service charges and fees on deposit accounts for the second quarter of 2006 increased $1.4 million or 13.7% annualized over the first quarter of 2006 and $10.0 million or 31.9% over the second quarter of 2005. Other service charges, commissions and fees were higher compared to the first quarter of 2006, reflecting increased investment, fiscal agent, and debit card interchange fees.
Noninterest Expense
Noninterest expense for the second quarter of 2006 was $333.3 million compared to $324.5 million for the first quarter of 2006 and $242.0 million for the second quarter of 2005. The largest component of noninterest expense, salaries and employee benefits, was essentially unchanged from the first quarter of 2006 and includes $4.1 million of stock option compensation expense compared to $3.9 million of stock option compensation expense in the first quarter of 2006.
Merger related expense was $8.9 million for the second quarter of 2006 compared to $6.8 million for the first quarter of 2006 and consists of systems conversion and employee-related costs for the Amegy acquisition. During the second quarter, the Company identified certain merger related expenses that were not properly classified during the first quarter. These expenses amounted to $1.1 million and were reclassified for the first quarter from other expense categories.
The efficiency ratio for the second quarter of 2006 was 57.5% compared to 58.2% for the first quarter of 2006 and 54.8% for the second quarter of 2005.
Asset Quality
Nonperforming assets declined to $73.5 million at June 30, 2006 from $96.6 million at March 31, 2006. As a result, the ratio of nonperforming assets to net loans and leases and other real estate owned improved to 0.22% at June 30, 2006 from 0.31% at both March 31, 2006 and June 30, 2005.
ZIONS BANCORPORATION
Press Release – Page 4
July 20, 2006
For the second quarter of 2006, net loan and lease charge-offs were $9.8 million or 0.12% annualized of average loans. This compares with $11.7 million or 0.15% annualized for the first quarter of 2006 and $3.9 million or 0.07% annualized for the second quarter of 2005. The provision for loan losses was $17.0 million for the second quarter of 2006 compared to $14.5 million for the first quarter of 2006 and $11.4 million for the second quarter of 2005. The increased provision for the quarter was mainly the result of the Company’s strong loan growth. The combined provisions for loan losses and unfunded lending commitments were $16.8 million for the second quarter of 2006, $14.2 million for the first quarter of 2006, and $12.5 million for the second quarter of 2005.
At June 30, 2006, the allowance for loan losses as a percentage of net loans and leases was 1.07%, compared to 1.10% at March 31, 2006 and 1.18% at June 30, 2005. At June 30, 2006, the allowance was 606.6% of nonperforming loans. The combined allowances for credit losses (allowance for loan losses plus the allowance for unfunded lending commitments) of $366.1 million were 1.12% of net loans and leases at the end of the second quarter of 2006.
Capital Management
The Company’s tangible common equity ratio was 5.54% at June 30, 2006 compared to 5.51% at March 31, 2006 and 6.98% at June 30, 2005. Retained earnings increased by $107.0 million during the second quarter, partially offset by a decrease in accumulated other comprehensive income of $25.2 million, while total assets increased by $1.8 billion.
Weighted average common and common-equivalent shares outstanding for the second quarter of 2006 were 107,883,374 compared to 107,724,724 for the first quarter of 2006 and 91,610,296 for the second quarter of 2005. Common shares outstanding at June 30, 2006 were 106,611,731 compared to 106,070,045 at March 31, 2006 and 90,062,646 at June 30, 2005. The increase year over year results primarily from the issuance of 14,351,115 common shares for the Amegy acquisition and for the quarter from the exercise of stock options.
ZIONS BANCORPORATION
Press Release – Page 5
July 20, 2006
Conference Call
Zions will host a conference call to discuss these second quarter results at 5:30 p.m. ET this afternoon (July 20, 2006). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-866-362-4666 and entering the passcode 97090116, 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 approximately 7:30 p.m. ET on Thursday, July 20 through midnight ET on Thursday, July 27, by dialing 1-888-286-8010 and entering the passcode 93617284. 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 450 offices and approximately 600 ATMs in ten 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
ZIONS BANCORPORATION
Press Release – Page 6
July 20, 2006
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; 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.
In addition, the following factors relating to the Company’s acquisition of Amegy, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the combination of the businesses of Zions Bancorporation and Amegy Bancorporation, Inc. may take longer, be more difficult, time consuming or costly to accomplish than expected; (2) the expected growth opportunities and cost savings from the merger may not be fully realized or may take longer to realize than expected; and (3) operating costs, customer losses and business disruption resulting from the merger, including adverse effects on relationships with employees, may be greater than expected.
Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2005 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.
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 7
FINANCIAL HIGHLIGHTS
(Unaudited)
| | Three Months Ended | | Six Months Ended |
| (In thousands, except per share and ratio data) | June 30, | | June 30, |
| | 2006 | | 2005 | | % Change | | 2006 | | 2005 | | % Change |
EARNINGS | | | | | | | | | | | | | | | | | | | | | |
| Taxable-equivalent net interest income | $ | 442,261 | | | $ | 336,088 | | | 31.59 | % | | $ | 871,085 | | | $ | 656,208 | | | 32.75 | % |
| Taxable-equivalent revenue | | 580,020 | | | | 442,020 | | | 31.22 | % | | | 1,137,332 | | | | 865,038 | | | 31.48 | % |
| Net interest income | | 436,327 | | | | 330,928 | | | 31.85 | % | | | 859,174 | | | | 645,879 | | | 33.02 | % |
| Noninterest income | | 137,759 | | | | 105,932 | | | 30.04 | % | | | 266,247 | | | | 208,830 | | | 27.49 | % |
| Provision for loan losses | | 17,022 | | | | 11,417 | | | 49.09 | % | | | 31,534 | | | | 20,800 | | | 51.61 | % |
| Noninterest expense | | 333,276 | | | | 242,046 | | | 37.69 | % | | | 657,731 | | | | 481,283 | | | 36.66 | % |
| Income before income taxes and minority interest | | 223,788 | | | | 183,397 | | | 22.02 | % | | | 436,156 | | | | 352,626 | | | 23.69 | % |
| Income taxes | | 78,821 | | | | 66,330 | | | 18.83 | % | | | 154,079 | | | | 126,079 | | | 22.21 | % |
| Minority interest | | (343 | ) | | | (1,743 | ) | | (80.32 | )% | | | (866 | ) | | | (2,497 | ) | | (65.32 | )% |
| Net income | | 145,310 | | | | 118,810 | | | 22.30 | % | | | 282,943 | | | | 229,044 | | | 23.53 | % |
| | | | | | | | | | | | | | | | | | | | | | |
PER COMMON SHARE | | | | | | | | | | | | | | | | | | | | | |
| Net income (diluted) | | 1.35 | | | | 1.30 | | | 3.85 | % | | | 2.62 | | | | 2.50 | | | 4.80 | % |
| Dividends | | 0.36 | | | | 0.36 | | | - | | | | 0.72 | | | | 0.72 | | | - | |
| Book value | | | | | | | | | | | | | 41.72 | | | | 32.62 | | | 27.90 | % |
| | | | | | | | | | | | | | | | | | | | | | |
SELECTED RATIOS | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | 1.33 | % | | | 1.47 | % | | | | | | 1.32 | % | | | 1.44 | % | | | |
| Return on average common equity | | 13.20 | % | | | 16.56 | % | | | | | | 13.06 | % | | | 16.20 | % | | | |
| Efficiency ratio | | 57.46 | % | | | 54.76 | % | | | | | | 57.83 | % | | | 55.64 | % | | | |
| Net interest margin | | 4.64 | % | | | 4.60 | % | | | | | | 4.66 | % | | | 4.57 | % | | | |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 8
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
| | Three Months Ended | | Six Months Ended |
| (In thousands, except share and ratio data) | June 30, | | June 30, |
| | 2006 | | 2005 | | % Change | | 2006 | | 2005 | | % Change |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | |
| Total assets | $ | 43,782,622 | | | $ | 32,510,692 | | | 34.67 | % | | $ | 43,217,571 | | | $ | 32,182,658 | | | 34.29 | % |
| Securities | | 5,876,065 | | | | 5,091,552 | | | 15.41 | % | | | 5,974,333 | | | | 5,141,496 | | | 16.20 | % |
| Net loans and leases | | 31,900,053 | | | | 23,330,670 | | | 36.73 | % | | | 31,188,372 | | | | 23,004,945 | | | 35.57 | % |
| Goodwill | | 1,884,192 | | | | 638,932 | | | 194.90 | % | | | 1,885,862 | | | | 640,758 | | | 194.32 | % |
| Core deposit and other intangibles | | 185,281 | | | | 53,011 | | | 249.51 | % | | | 190,885 | | | | 54,822 | | | 248.19 | % |
| Total deposits | | 32,175,202 | | | | 23,787,985 | | | 35.26 | % | | | 32,099,667 | | | | 23,507,308 | | | 36.55 | % |
| Core deposits (1) | | 29,303,520 | | | | 22,248,291 | | | 31.71 | % | | | 29,378,174 | | | | 22,044,385 | | | 33.27 | % |
| Minority interest | | 28,486 | | | | 24,726 | | | 15.21 | % | | | 28,355 | | | | 24,787 | | | 14.39 | % |
| Shareholders' equity | | 4,414,775 | | | | 2,877,374 | | | 53.43 | % | | | 4,368,301 | | | | 2,851,269 | | | 53.21 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Weighted average common and common- | | | | | | | | | | | | | | | | | | | | | |
| equivalent shares outstanding | | 107,883,374 | | | | 91,610,296 | | | 17.76 | % | | | 107,866,829 | | | | 91,596,314 | | | 17.76 | % |
| | | | | | | | | | | | | | | | | | | | | | |
AT PERIOD END | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | | | | | | | | | | $ | 45,142,086 | | | $ | 32,875,294 | | | 37.31 | % |
| Securities | | | | | | | | | | | | | 5,797,079 | | | | 4,904,799 | | | 18.19 | % |
| Net loans and leases | | | | | | | | | | | | | 32,682,335 | | | | 23,821,563 | | | 37.20 | % |
| Sold loans being serviced (2) | | | | | | | | | | | | | 3,003,101 | | | | 2,910,182 | | | 3.19 | % |
| Allowance for loan losses | | | | | | | | | | | | | 348,475 | | | | 281,428 | | | 23.82 | % |
| Allowance for unfunded lending commitments | | | | | | | | | | | | | 17,592 | | | | 15,395 | | | 14.27 | % |
| Goodwill | | | | | | | | | | | | | 1,881,256 | | | | 638,933 | | | 194.44 | % |
| Core deposit and other intangibles | | | | | | | | | | | | | 177,692 | | | | 51,397 | | | 245.72 | % |
| Total deposits | | | | | | | | | | | | | 33,254,210 | | | | 24,398,535 | | | 36.30 | % |
| Core deposits (1) | | | | | | | | | | | | | 29,851,896 | | | | 22,840,557 | | | 30.70 | % |
| Minority interest | | | | | | | | | | | | | 28,619 | | | | 24,665 | | | 16.03 | % |
| Shareholders' equity | | | | | | | | | | | | | 4,447,330 | | | | 2,937,908 | | | 51.38 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | | | | | | | | | | | | 106,611,731 | | | | 90,062,646 | | | 18.38 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | 10.08 | % | | | 8.85 | % | | | | | | 10.11 | % | | | 8.86 | % | | | |
| Common dividend payout | | 26.37 | % | | | 27.37 | % | | | | | | 27.02 | % | | | 28.42 | % | | | |
| Tangible common equity ratio | | | | | | | | | | | | | 5.54 | % | | | 6.98 | % | | | |
| Nonperforming assets | | | | | | | | | | | | | 73,475 | | | | 73,680 | | | (0.28 | )% |
| Accruing loans past due 90 days or more | | | | | | | | | | | | | 29,434 | | | | 13,183 | | | 123.27 | % |
| Nonperforming assets to net loans and leases | | | | | | | | | | | | | | | | | | | | | |
| and other real estate owned at period end | | | | | | | | | | | | | 0.22 | % | | | 0.31 | % | | | |
| (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. |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
| | Three Months Ended |
| (In thousands, except per share and ratio data) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2006 | | 2005 |
EARNINGS | | | | | | | | | | | | | | | | | | | |
| Taxable-equivalent net interest income | $ | 442,261 | | | $ | 428,824 | | | $ | 380,316 | | | $ | 345,826 | | | $ | 336,088 | |
| Taxable-equivalent revenue | | 580,020 | | | | 557,312 | | | | 497,943 | | | | 456,321 | | | | 442,020 | |
| Net interest income | | 436,327 | | | | 422,847 | | | | 374,819 | | | | 340,652 | | | | 330,928 | |
| Noninterest income | | 137,759 | | | | 128,488 | | | | 117,627 | | | | 110,495 | | | | 105,932 | |
| Provision for loan losses | | 17,022 | | | | 14,512 | | | | 10,116 | | | | 12,107 | | | | 11,417 | |
| Noninterest expense | | 333,276 | | | | 324,455 | | | | 283,789 | | | | 247,718 | | | | 242,046 | |
| Impairment loss on goodwill | | - | | | | - | | | | 602 | | | | - | | | | - | |
| Income before income taxes and minority interest | | 223,788 | | | | 212,368 | | | | 197,939 | | | | 191,322 | | | | 183,397 | |
| Income taxes | | 78,821 | | | | 75,258 | | | | 69,139 | | | | 68,200 | | | | 66,330 | |
| Minority interest | | (343 | ) | | | (523 | ) | | | 693 | | | | 152 | | | | (1,743 | ) |
| Net income | | 145,310 | | | | 137,633 | | | | 128,107 | | | | 122,970 | | | | 118,810 | |
| | | | | | | | | | | | | | | | | | | | |
PER COMMON SHARE | | | | | | | | | | | | | | | | | | | |
| Net income (diluted) | | 1.35 | | | | 1.28 | | | | 1.32 | | | | 1.34 | | | | 1.30 | |
| Dividends | | 0.36 | | | | 0.36 | | | | 0.36 | | | | 0.36 | | | | 0.36 | |
| Book value | | 41.72 | | | | 40.95 | | | | 40.30 | | | | 33.30 | | | | 32.62 | |
| | | | | | | | | | | | | | | | | | | | |
SELECTED RATIOS | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | 1.33 | % | | | 1.31 | % | | | 1.38 | % | | | 1.47 | % | | | 1.47 | % |
| Return on average common equity | | 13.20 | % | | | 12.92 | % | | | 14.82 | % | | | 16.41 | % | | | 16.56 | % |
| Efficiency ratio | | 57.46 | % | | | 58.22 | % | | | 56.99 | % | | | 54.29 | % | | | 54.76 | % |
| Net interest margin | | 4.64 | % | | | 4.69 | % | | | 4.62 | % | | | 4.59 | % | | | 4.60 | % |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
| | Three Months Ended |
| (In thousands, except share and ratio data) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2006 | | 2005 |
AVERAGE BALANCES | | | | | | | | | | | | | | |
| Total assets | $ | 43,782,622 | | | $ | 42,646,242 | | | $ | 36,780,719 | | | $ | 33,218,477 | | | $ | 32,510,692 | |
| Securities | | 5,876,065 | | | | 6,073,692 | | | | 5,352,093 | | | | 4,993,735 | | | | 5,091,552 | |
| Net loans and leases | | 31,900,053 | | | | 30,468,784 | | | | 25,982,873 | | | | 24,009,024 | | | | 23,330,670 | |
| Goodwill | | 1,884,192 | | | | 1,887,551 | | | | 1,060,381 | | | | 638,957 | | | | 638,932 | |
| Core deposit and other intangibles | | 185,281 | | | | 196,551 | | | | 101,593 | | | | 52,276 | | | | 53,011 | |
| Total deposits | | 32,175,202 | | | | 32,023,293 | | | | 27,605,309 | | | | 24,807,387 | | | | 23,787,985 | |
| Core deposits (1) | | 29,303,520 | | | | 29,453,658 | | | | 25,467,323 | | | | 23,029,389 | | | | 22,248,291 | |
| Minority interest | | 28,486 | | | | 28,223 | | | | 27,079 | | | | 26,220 | | | | 24,726 | |
| Shareholders' equity | | 4,414,775 | | | | 4,321,311 | | | | 3,428,605 | | | | 2,972,615 | | | | 2,877,374 | |
| | | | | | | | | | | | | | | | | | | | |
| Weighted average common and common- | | | | | | | | | | | | | | | | | | | |
| equivalent shares outstanding | | 107,883,374 | | | | 107,724,724 | | | | 96,963,446 | | | | 91,605,279 | | | | 91,610,296 | |
| | | | | | | | | | | | | | | | | | | | |
AT PERIOD END | | | | | | | | | | | | | | | | | | | |
| Total assets | $ | 45,142,086 | | | $ | 43,318,029 | | | $ | 42,779,639 | | | $ | 33,422,701 | | | $ | 32,875,294 | |
| Securities | | 5,797,079 | | | | 5,984,115 | | | | 6,057,212 | | | | 4,992,339 | | | | 4,904,799 | |
| Net loans and leases | | 32,682,335 | | | | 31,140,326 | | | | 30,126,936 | | | | 23,930,017 | | | | 23,821,563 | |
| Sold loans being serviced (2) | | 3,003,101 | | | | 3,183,992 | | | | 3,382,603 | | | | 3,561,818 | | | | 2,910,182 | |
| Allowance for loan losses | | 348,475 | | | | 341,261 | | | | 338,399 | | | | 287,237 | | | | 281,428 | |
| Allowance for unfunded lending commitments | | 17,592 | | | | 17,841 | | | | 18,120 | | | | 15,830 | | | | 15,395 | |
| Goodwill | | 1,881,256 | | | | 1,884,225 | | | | 1,887,588 | | | | 639,120 | | | | 638,933 | |
| Core deposit and other intangibles | | 177,692 | | | | 188,384 | | | | 199,166 | | | | 47,670 | | | | 51,397 | |
| Total deposits | | 33,254,210 | | | | 32,872,708 | | | | 32,642,408 | | | | 25,399,741 | | | | 24,398,535 | |
| Core deposits (1) | | 29,851,896 | | | | 30,179,291 | | | | 30,127,812 | | | | 23,507,531 | | | | 22,840,557 | |
| Minority interest | | 28,619 | | | | 28,895 | | | | 27,551 | | | | 26,719 | | | | 24,665 | |
| Shareholders' equity | | 4,447,330 | | | | 4,343,816 | | | | 4,237,264 | | | | 2,999,173 | | | | 2,937,908 | |
| | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | 106,611,731 | | | | 106,070,045 | | | | 105,147,562 | | | | 90,067,016 | | | | 90,062,646 | |
| | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | 10.08 | % | | | 10.13 | % | | | 9.32 | % | | | 8.95 | % | | | 8.85 | % |
| Common dividend payout | | 26.37 | % | | | 27.71 | % | | | 25.50 | % | | | 26.47 | % | | | 27.37 | % |
| Tangible common equity ratio | | 5.54 | % | | | 5.51 | % | | | 5.28 | % | | | 7.06 | % | | | 6.98 | % |
| Nonperforming assets | | 73,475 | | | | 96,556 | | | | 89,063 | | | | 83,101 | | | | 73,680 | |
| Accruing loans past due 90 days or more | | 29,434 | | | | 10,299 | | | | 17,153 | | | | 15,836 | | | | 13,183 | |
| Nonperforming assets to net loans and leases | | | | | | | | | | | | | | | | | | | |
| and other real estate owned at period end | | 0.22 | % | | | 0.31 | % | | | 0.30 | % | | | 0.35 | % | | | 0.31 | % |
| (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. |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11
CONSOLIDATED BALANCE SHEETS
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |
| (In thousands, except share amounts) | 2006 | | 2006 | | 2005 | | 2005 | | 2005 | |
| | (Unaudited) | | (Unaudited) | | | | | (Unaudited) | | (Unaudited) | |
| ASSETS | | | | | | | | | | | | | | | |
| Cash and due from banks | $ | 1,773,829 | | $ | 1,584,857 | | $ | 1,706,590 | | $ | 1,109,202 | | $ | 1,232,527 | |
| Money market investments: | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | 87,512 | | | 51,942 | | | 22,179 | | | 13,350 | | | 11,004 | |
| Federal funds sold | | 262,959 | | | 178,406 | | | 414,281 | | | 460,167 | | | 52,327 | |
| Security resell agreements | | 225,160 | | | 238,762 | | | 230,282 | | | 528,763 | | | 537,327 | |
| Investment securities: | | | | | | | | | | | | | | | |
| Held to maturity, at cost (approximate market value $620,786, | | | | | | | | | | | | | | | |
| $633,784, $642,258, $641,737 and $651,936) | | 639,593 | | | 644,212 | | | 649,791 | | | 642,687 | | | 649,888 | |
| Available for sale, at market | | 5,086,840 | | | 5,187,979 | | | 5,305,859 | | | 3,997,593 | | | 3,972,829 | |
| Trading account, at market (includes $50,684, $34,340, | | | | | | | | | | | | | | | |
| $43,444, $141,535 and $102,916 transferred as collateral | | | | | | | | | | | | | | | |
| under repurchase agreements) | | 70,646 | | | 151,924 | | | 101,562 | | | 352,059 | | | 282,082 | |
| | | 5,797,079 | | | 5,984,115 | | | 6,057,212 | | | 4,992,339 | | | 4,904,799 | |
| Loans: | | | | | | | | | | | | | | | |
| Loans held for sale | | 248,948 | | | 311,655 | | | 256,236 | | | 213,223 | | | 207,123 | |
| Loans and leases | | 32,576,017 | | | 30,958,190 | | | 29,996,022 | | | 23,823,715 | | | 23,718,150 | |
| | | 32,824,965 | | | 31,269,845 | | | 30,252,258 | | | 24,036,938 | | | 23,925,273 | |
| Less: | | | | | | | | | | | | | | | |
| Unearned income and fees, net of related costs | | 142,630 | | | 129,519 | | | 125,322 | | | 106,921 | | | 103,710 | |
| Allowance for loan losses | | 348,475 | | | 341,261 | | | 338,399 | | | 287,237 | | | 281,428 | |
| Loans and leases, net of allowance | | 32,333,860 | | | 30,799,065 | | | 29,788,537 | | | 23,642,780 | | | 23,540,135 | |
| | | | | | | | | | | | | | | | |
| Other noninterest-bearing investments | | 993,379 | | | 971,569 | | | 938,515 | | | 708,368 | | | 698,968 | |
| Premises and equipment, net | | 574,154 | | | 565,327 | | | 564,745 | | | 410,800 | | | 409,488 | |
| Goodwill | | 1,881,256 | | | 1,884,225 | | | 1,887,588 | | | 639,120 | | | 638,933 | |
| Core deposit and other intangibles | | 177,692 | | | 188,384 | | | 199,166 | | | 47,670 | | | 51,397 | |
| Other real estate owned | | 16,024 | | | 24,964 | | | 19,966 | | | 15,176 | | | 11,070 | |
| Other assets | | 1,019,182 | | | 846,413 | | | 950,578 | | | 854,966 | | | 787,319 | |
| | $ | 45,142,086 | | $ | 43,318,029 | | $ | 42,779,639 | | $ | 33,422,701 | | $ | 32,875,294 | |
| | | | | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | |
| Noninterest-bearing demand | $ | 10,163,834 | | $ | 9,953,003 | | $ | 9,953,833 | | $ | 7,725,179 | | $ | 7,577,450 | |
| Interest-bearing: | | | | | | | | | | | | | | | |
| Savings and money market | | 15,814,128 | | | 16,354,901 | | | 16,055,754 | | | 13,442,012 | | | 13,195,200 | |
| Time under $100,000 | | 2,030,717 | | | 1,959,351 | | | 1,938,789 | | | 1,554,064 | | | 1,468,017 | |
| Time $100,000 and over | | 3,402,314 | | | 2,693,417 | | | 2,514,596 | | | 1,892,210 | | | 1,557,978 | |
| Foreign | | 1,843,217 | | | 1,912,036 | | | 2,179,436 | | | 786,276 | | | 599,890 | |
| | | 33,254,210 | | | 32,872,708 | | | 32,642,408 | | | 25,399,741 | | | 24,398,535 | |
| | | | | | | | | | | | | | | | |
| Securities sold, not yet purchased | | 27,388 | | | 55,577 | | | 64,654 | | | 331,891 | | | 291,353 | |
| Federal funds purchased | | 1,397,694 | | | 1,484,049 | | | 1,255,662 | | | 1,262,646 | | | 1,593,010 | |
| Security repurchase agreements | | 1,169,296 | | | 1,096,420 | | | 1,027,658 | | | 756,631 | | | 755,676 | |
| Other liabilities | | 789,222 | | | 677,495 | | | 592,599 | | | 571,583 | | | 544,691 | |
| Commercial paper | | 245,126 | | | 153,286 | | | 167,188 | | | 149,089 | | | 75,393 | |
| Federal Home Loan Bank advances and other borrowings: | | | | | | | | | | | | | | | |
| One year or less | | 1,216,848 | | | 4,264 | | | 18,801 | | | 13,063 | | | 314,643 | |
| Over one year | | 133,450 | | | 134,043 | | | 234,488 | | | 226,482 | | | 227,039 | |
| Long-term debt | | 2,432,903 | | | 2,467,476 | | | 2,511,366 | | | 1,685,683 | | | 1,712,381 | |
| Total liabilities | | 40,666,137 | | | 38,945,318 | | | 38,514,824 | | | 30,396,809 | | | 29,912,721 | |
| | | | | | | | | | | | | | | | |
| Minority interest | | 28,619 | | | 28,895 | | | 27,551 | | | 26,719 | | | 24,665 | |
| | | | | | | | | | | | | | | | |
| Shareholders' equity: | | | | | | | | | | | | | | | |
| Capital stock: | | | | | | | | | | | | | | | |
| Preferred stock, without par value; authorized | | | | | | | | | | | | | | | |
| 3,000,000 shares; issued and outstanding, none | | - | | | - | | | - | | | - | | | - | |
| Common stock, without par value; authorized 350,000,000 | | | | | | | | | | | | | | | |
| shares; issued and outstanding 106,611,731, 106,070,045, | | | | | | | | | | | | | | | |
| 105,147,562, 90,067,016 and 90,062,646 shares | | 2,218,711 | | | 2,197,245 | | | 2,156,732 | | | 971,002 | | | 961,510 | |
| Retained earnings | | 2,386,369 | | | 2,279,383 | | | 2,179,885 | | | 2,084,439 | | | 1,994,015 | |
| Accumulated other comprehensive loss | | (148,327 | ) | | (123,099 | ) | | (83,043 | ) | | (52,088 | ) | | (12,905 | ) |
| Deferred compensation | | (9,423 | ) | | (9,713 | ) | | (16,310 | ) | | (4,180 | ) | | (4,712 | ) |
| Total shareholders' equity | | 4,447,330 | | | 4,343,816 | | | 4,237,264 | | | 2,999,173 | | | 2,937,908 | |
| | $ | 45,142,086 | | $ | 43,318,029 | | $ | 42,779,639 | | $ | 33,422,701 | | $ | 32,875,294 | |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | Three Months Ended | |
| (In thousands, except per share amounts) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |
| | 2006 | | 2006 | | 2005 | | 2005 | | 2005 | |
| Interest income: | | | | | | | | | | | | | | | |
| Interest and fees on loans | $ | 591,139 | | $ | 542,784 | | $ | 458,429 | | $ | 406,319 | | $ | 380,233 | |
| Interest on loans held for sale | | 4,055 | | | 4,046 | | | 3,131 | | | 2,462 | | | 2,618 | |
| Lease financing | | 4,496 | | | 4,130 | | | 4,010 | | | 3,980 | | | 4,023 | |
| Interest on money market investments | | 5,910 | | | 5,847 | | | 13,280 | | | 7,723 | | | 6,041 | |
| Interest on securities: | | | | | | | | | | | | | | | |
| Held to maturity – taxable | | 2,209 | | | 2,215 | | | 1,866 | | | 1,827 | | | 1,833 | |
| Held to maturity – nontaxable | | 5,683 | | | 5,531 | | | 5,948 | | | 6,066 | | | 6,008 | |
| Available for sale – taxable | | 68,995 | | | 69,104 | | | 56,267 | | | 49,339 | | | 49,102 | |
| Available for sale – nontaxable | | 2,119 | | | 2,339 | | | 1,433 | | | 808 | | | 834 | |
| Trading account | | 1,995 | | | 2,074 | | | 4,038 | | | 4,753 | | | 5,044 | |
| Total interest income | | 686,601 | | | 638,070 | | | 548,402 | | | 483,277 | | | 455,736 | |
| | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | |
| Interest on savings and money market deposits | | 97,131 | | | 86,623 | | | 71,093 | | | 59,539 | | | 49,236 | |
| Interest on time and foreign deposits | | 67,424 | | | 59,485 | | | 43,740 | | | 31,536 | | | 24,557 | |
| Interest on short-term borrowings | | 43,475 | | | 27,978 | | | 24,155 | | | 23,213 | | | 24,152 | |
| Interest on long-term debt | | 42,244 | | | 41,137 | | | 34,595 | | | 28,337 | | | 26,863 | |
| Total interest expense | | 250,274 | | | 215,223 | | | 173,583 | | | 142,625 | | | 124,808 | |
| | | | | | | | | | | | | | | | |
| Net interest income | | 436,327 | | | 422,847 | | | 374,819 | | | 340,652 | | | 330,928 | |
| Provision for loan losses | | 17,022 | | | 14,512 | | | 10,116 | | | 12,107 | | | 11,417 | |
| Net interest income after provision for loan losses | | 419,305 | | | 408,335 | | | 364,703 | | | 328,545 | | | 319,511 | |
| | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | |
| Service charges and fees on deposit accounts | | 41,414 | | | 40,038 | | | 34,375 | | | 32,233 | | | 31,406 | |
| Loan sales and servicing income | | 14,921 | | | 15,468 | | | 21,315 | | | 21,649 | | | 16,790 | |
| Other service charges, commissions and fees | | 43,718 | | | 39,931 | | | 32,973 | | | 28,877 | | | 28,132 | |
| Trust and investment management income | | 5,312 | | | 4,696 | | | 4,489 | | | 3,923 | | | 4,604 | |
| Income from securities conduit | | 8,492 | | | 8,406 | | | 8,977 | | | 8,553 | | | 8,617 | |
| Dividends and other investment income | | 9,946 | | | 9,209 | | | 7,642 | | | 6,954 | | | 7,436 | |
| Market making, trading and nonhedge derivative income | | 5,444 | | | 4,425 | | | 1,352 | | | 4,069 | | | 6,509 | |
| Equity securities gains (losses), net | | (1,764 | ) | | 550 | | | 1,764 | | | 1,089 | | | (2,778 | ) |
| Fixed income securities gains (losses), net | | 5,156 | | | 251 | | | 423 | | | 276 | | | (1,187 | ) |
| Other | | 5,120 | | | 5,514 | | | 4,317 | | | 2,872 | | | 6,403 | |
| Total noninterest income | | 137,759 | | | 128,488 | | | 117,627 | | | 110,495 | | | 105,932 | |
| | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 185,643 | | | 185,855 | | | 154,942 | | | 142,590 | | | 138,244 | |
| Occupancy, net | | 24,549 | | | 24,081 | | | 21,388 | | | 19,048 | | | 18,504 | |
| Furniture and equipment | | 22,737 | | | 23,004 | | | 19,032 | | | 16,979 | | | 16,260 | |
| Legal and professional services | | 9,005 | | | 8,509 | | | 10,012 | | | 8,575 | | | 7,967 | |
| Postage and supplies | | 8,646 | | | 7,715 | | | 7,043 | | | 6,510 | | | 6,798 | |
| Advertising | | 6,814 | | | 5,985 | | | 6,061 | | | 5,875 | | | 5,335 | |
| Impairment losses on long-lived assets | | - | | | 1,304 | | | 2,500 | | | - | | | - | |
| Restructuring charges | | - | | | 17 | | | 2,351 | | | - | | | - | |
| Merger related expense | | 8,906 | | | 6,807 | | | 3,103 | | | 207 | | | - | |
| Amortization of core deposit and other intangibles | | 10,692 | | | 10,693 | | | 6,092 | | | 3,684 | | | 3,696 | |
| Provision for unfunded lending commitments | | (249 | ) | | (279 | ) | | 277 | | | 435 | | | 1,042 | |
| Other | | 56,533 | | | 50,764 | | | 50,988 | | | 43,815 | | | 44,200 | |
| Total noninterest expense | | 333,276 | | | 324,455 | | | 283,789 | | | 247,718 | | | 242,046 | |
| | | | | | | | | | | | | | | | |
| Impairment loss on goodwill | | - | | | - | | | 602 | | | - | | | - | |
| | | | | | | | | | | | | | | | |
| Income before income taxes and minority interest | | 223,788 | | | 212,368 | | | 197,939 | | | 191,322 | | | 183,397 | |
| Income taxes | | 78,821 | | | 75,258 | | | 69,139 | | | 68,200 | | | 66,330 | |
| Minority interest | | (343 | ) | | (523 | ) | | 693 | | | 152 | | | (1,743 | ) |
| Net income | $ | 145,310 | | $ | 137,633 | | $ | 128,107 | | $ | 122,970 | | $ | 118,810 | |
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding during the period: | | | | | | | | | | | | | | | |
| Basic shares | | 106,001 | | | 105,472 | | | 95,002 | | | 89,980 | | | 89,846 | |
| Diluted shares | | 107,883 | | | 107,725 | | | 96,963 | | | 91,605 | | | 91,610 | |
| | | | | | | | | | | | | | | | |
| Net income per common share: | | | | | | | | | | | | | | | |
| Basic | $ | 1.37 | | $ | 1.30 | | $ | 1.35 | | $ | 1.37 | | $ | 1.32 | |
| Diluted | | 1.35 | | | 1.28 | | | 1.32 | | | 1.34 | | | 1.30 | |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Unaudited)
| | Six Months Ended | |
| (In thousands, except per share amounts) | June 30, | |
| | 2006 | | 2005 | |
| Interest income: | | | | | | |
| Interest and fees on loans | $ | 1,133,923 | | $ | 731,168 | |
| Interest on loans held for sale | | 8,101 | | | 4,221 | |
| Lease financing | | 8,626 | | | 8,089 | |
| Interest on money market investments | | 11,757 | | | 10,679 | |
| Interest on securities: | | | | | | |
Held to maturity – taxable | | 4,424 | | | 3,638 | |
| Held to maturity – nontaxable | | 11,214 | | | 11,991 | |
| Available for sale – taxable | | 138,099 | | | 96,022 | |
| Available for sale – nontaxable | | 4,458 | | | 1,690 | |
| Trading account | | 4,069 | | | 11,079 | |
| Total interest income | | 1,324,671 | | | 878,577 | |
| | | | | | | |
| Interest expense: | | | | | | |
| Interest on savings and money market deposits | | 183,754 | | | 89,972 | |
| Interest on time and foreign deposits | | 126,909 | | | 44,444 | |
| Interest on short-term borrowings | | 71,453 | | | 44,781 | |
| Interest on long-term debt | | 83,381 | | | 53,501 | |
| Total interest expense | | 465,497 | | | 232,698 | |
| | | | | | | |
| Net interest income | | 859,174 | | | 645,879 | |
| Provision for loan losses | | 31,534 | | | 20,800 | |
| Net interest income after provision for loan losses | | 827,640 | | | 625,079 | |
| | | | | | | |
| Noninterest income: | | | | | | |
| Service charges and fees on deposit accounts | | 81,452 | | | 62,188 | |
| Loan sales and servicing income | | 30,389 | | | 34,858 | |
| Other service charges, commissions and fees | | 83,649 | | | 54,785 | |
| Trust and investment management income | | 10,008 | | | 8,071 | |
| Income from securities conduit | | 16,898 | | | 17,436 | |
| Dividends and other investment income | | 19,155 | | | 15,444 | |
| Market making, trading and nonhedge derivative income | | 9,869 | | | 10,293 | |
| Equity securities losses, net | | (1,214 | ) | | (4,165 | ) |
| Fixed income securities gains, net | | 5,407 | | | 146 | |
| Other | | 10,634 | | | 9,774 | |
| Total noninterest income | | 266,247 | | | 208,830 | |
| | | | | | | |
| Noninterest expense: | | | | | | |
| Salaries and employee benefits | | 371,498 | | | 276,370 | |
| Occupancy, net | | 48,630 | | | 36,957 | |
| Furniture and equipment | | 45,741 | | | 32,179 | |
| Legal and professional services | | 17,514 | | | 16,217 | |
| Postage and supplies | | 16,361 | | | 13,286 | |
| Advertising | | 12,799 | | | 9,428 | |
| Impairment losses on long-lived assets | | 1,304 | | | 633 | |
| Restructuring charges | | 17 | | | 92 | |
| Merger related expense | | 15,713 | | | - | |
| Amortization of core deposit and other intangibles | | 21,385 | | | 7,129 | |
| Provision for unfunded lending commitments | | (528 | ) | | 2,713 | |
| Other | | 107,297 | | | 86,279 | |
| Total noninterest expense | | 657,731 | | | 481,283 | |
| | | | | | | |
| Income before income taxes and minority interest | | 436,156 | | | 352,626 | |
| Income taxes | | 154,079 | | | 126,079 | |
| Minority interest | | (866 | ) | | (2,497 | ) |
| Net income | $ | 282,943 | | $ | 229,044 | |
| | | | | | | |
| Weighted average shares outstanding during the period: | | | | | | |
| Basic shares | | 105,738 | | | 89,861 | |
| Diluted shares | | 107,867 | | | 91,596 | |
| | | | | | | |
| Net income per common share: | | | | | | |
| Basic | $ | 2.68 | | $ | 2.55 | |
| Diluted | | 2.62 | | | 2.50 | |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME
(Unaudited)
| | | | | | Accumulated | | | | | |
| | | | | | | | other | | | | | Total | |
| | Common | | Retained | | comprehensive | | Deferred | | shareholders' | |
| (In thousands) | stock | | earnings | | income (loss) | | compensation | | equity | |
| | | | | | | | | | | | | | | | |
| Balance, December 31, 2005 | $ | 2,156,732 | | $ | 2,179,885 | | $ | (83,043 | ) | $ | (16,310 | ) | $ | 4,237,264 | |
| Comprehensive income: | | | | | | | | | | | | | | | |
| Net income for the period | | | | | 282,943 | | | | | | | | | 282,943 | |
| Other comprehensive loss, net of tax: | | | | | | | | | | | | | | | |
| Net realized and unrealized holding losses | | | | | | | | | | | | | | | |
| on investments and retained interests | | | | | | | | (31,281 | ) | | | | | | |
| Foreign currency translation | | | | | | | | 543 | | | | | | | |
| Reclassification for net realized gains | | | | | | | | | | | | | | | |
| on investments recorded in operations | | | | | | | | (1,456 | ) | | | | | | |
| Net unrealized losses on derivative instruments | | | | | | | | (33,090 | ) | | | | | | |
| Other comprehensive loss | | | | | | | | (65,284 | ) | | | | | (65,284 | ) |
| Total comprehensive income | | | | | | | | | | | | | | 217,659 | |
| Stock redeemed and retired | | (1,338 | ) | | | | | | | | | | | (1,338 | ) |
| Net stock options exercised | | 63,449 | | | | | | | | | | | | 63,449 | |
| Reversal of deferred compensation, adoption | | | | | | | | | | | | | | | |
| of SFAS 123R | | (11,111 | ) | | | | | | | | 11,111 | | | - | |
| Share-based compensation | | 10,979 | | | | | | | | | | | | 10,979 | |
| Cash dividends – common, $.72 per share | | | | | (76,459 | ) | | | | | | | | (76,459 | ) |
| Change in deferred compensation | | | | | | | | | | | (4,224 | ) | | (4,224 | ) |
| Balance, June 30, 2006 | $ | 2,218,711 | | $ | 2,386,369 | | $ | (148,327 | ) | $ | (9,423 | ) | $ | 4,447,330 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Balance, December 31, 2004 | $ | 972,065 | | $ | 1,830,064 | | $ | (7,932 | ) | $ | (4,218 | ) | $ | 2,789,979 | |
| Comprehensive income: | | | | | | | | | | | | | | | |
| Net income for the period | | | | | 229,044 | | | | | | | | | 229,044 | |
| Other comprehensive loss, net of tax: | | | | | | | | | | | | | | | |
| Net realized and unrealized holding gains | | | | | | | | | | | | | | | |
| on investments and retained interests | | | | | | | | 2,790 | | | | | | | |
| Foreign currency translation | | | | | | | | (1,123 | ) | | | | | | |
| Reclassification for net realized gains | | | | | | | | | | | | | | | |
| on investments recorded in operations | | | | | | | | (153 | ) | | | | | | |
| Net unrealized losses on derivative instruments | | | | | | | | (6,487 | ) | | | | | | |
| Other comprehensive loss | | | | | | | | (4,973 | ) | | | | | (4,973 | ) |
| Total comprehensive income | | | | | | | | | | | | | | 224,071 | |
| Stock redeemed and retired | | (80,058 | ) | | | | | | | | | | | (80,058 | ) |
| Net stock options exercised and restricted stock issued | | 69,503 | | | | | | | | | | | | 69,503 | |
| Cash dividends – common, $.72 per share | | | | | (65,093 | ) | | | | | | | | (65,093 | ) |
| Change in deferred compensation | | | | | | | | | | | (494 | ) | | (494 | ) |
| Balance, June 30, 2005 | $ | 961,510 | | $ | 1,994,015 | | $ | (12,905 | ) | $ | (4,712 | ) | $ | 2,937,908 | |
Total comprehensive income for the three months ended June 30, 2006 and 2005 was $120,082 and $156,629, respectively.
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
Nonperforming Assets | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (In thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2006 | | 2006 | | 2005 | | 2005 | | 2005 |
| | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans | $ | 57,249 | | | $ | 71,376 | | | $ | 68,717 | | | $ | 67,248 | | | $ | 61,871 | |
| Restructured loans | | 202 | | | | 216 | | | | 380 | | | | 677 | | | | 739 | |
| Other real estate owned | | 16,024 | | | | 24,964 | | | | 19,966 | | | | 15,176 | | | | 11,070 | |
| Total | $ | 73,475 | | | $ | 96,556 | | | $ | 89,063 | | | $ | 83,101 | | | $ | 73,680 | |
| % of net loans and leases* and other real | | | | | | | | | | | | | | | | | | | |
| estate owned | | 0.22 | % | | | 0.31 | % | | | 0.30 | % | | | 0.35 | % | | | 0.31 | % |
| | | | | | | | | | | | | | | | | | | | |
| Accruing loans past due 90 days or more | $ | 29,434 | | | $ | 10,299 | | | $ | 17,153 | | | $ | 15,836 | | | $ | 13,183 | |
| | | | | | | | | | | | | | | | | | | | |
| % of net loans and leases* | | 0.09 | % | | | 0.03 | % | | | 0.06 | % | | | 0.07 | % | | | 0.06 | % |
| | | | | | | | | | | | | | | | | | | | |
| *Includes loans held for sale. | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Allowances for Credit Losses | | | | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2006 | | 2006 | | 2005 | | 2005 | | 2005 |
Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 341,261 | | | $ | 338,399 | | | $ | 287,237 | | | $ | 281,428 | | | $ | 273,906 | |
| Allowance of company acquired | | - | | | | - | | | | 49,217 | | | | - | | | | - | |
| Add: | | | | | | | | | | | | | | | | | | | |
| Provision for losses | | 17,022 | | | | 14,512 | | | | 10,116 | | | | 12,107 | | | | 11,417 | |
| Deduct: | | | | | | | | | | | | | | | | | | | |
| Loan and lease charge-offs | | (16,082 | ) | | | (15,609 | ) | | | (12,168 | ) | | | (10,883 | ) | | | (8,633 | ) |
| Recoveries | | 6,274 | | | | 3,959 | | | | 3,997 | | | | 4,585 | | | | 4,738 | |
| Net loan and lease charge-offs | | (9,808 | ) | | | (11,650 | ) | | | (8,171 | ) | | | (6,298 | ) | | | (3,895 | ) |
| Balance at end of period | $ | 348,475 | | | $ | 341,261 | | | $ | 338,399 | | | $ | 287,237 | | | $ | 281,428 | |
| | | | | | | | | | | | | | | | | | | | |
| Ratio of allowance for loan losses to net loans | | | | | | | | | | | | | | | | | | | |
| and leases outstanding at period end | | 1.07 | % | | | 1.10 | % | | | 1.12 | % | | | 1.20 | % | | | 1.18 | % |
| | | | | | | | | | | | | | | | | | | | |
| Ratio of allowance for loan losses to nonperforming | | | | | | | | | | | | | | | | | | | |
| loans at period end | | 606.56 | % | | | 476.67 | % | | | 489.74 | % | | | 422.87 | % | | | 449.49 | % |
| | | | | | | | | | | | | | | | | | | | |
Allowance for Unfunded Lending Commitments | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 17,841 | | | $ | 18,120 | | | $ | 15,830 | | | $ | 15,395 | | | $ | 14,353 | |
| Allowance of company acquired | | - | | | | - | | | | 2,013 | | | | - | | | | - | |
| Provision charged (credited) against earnings | | (249 | ) | | | (279 | ) | | | 277 | | | | 435 | | | | 1,042 | |
| Balance at end of period | $ | 17,592 | | | $ | 17,841 | | | $ | 18,120 | | | $ | 15,830 | | | $ | 15,395 | |
| | | | | | | | | | | | | | | | | | | | |
Total Allowances for Credit Losses | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | $ | 348,475 | | | $ | 341,261 | | | $ | 338,399 | | | $ | 287,237 | | | $ | 281,428 | |
| Allowance for unfunded lending commitments | | 17,592 | | | | 17,841 | | | | 18,120 | | | | 15,830 | | | | 15,395 | |
| Total allowances for credit losses | $ | 366,067 | | | $ | 359,102 | | | $ | 356,519 | | | $ | 303,067 | | | $ | 296,823 | |
| | | | | | | | | | | | | | | | | | | | |
| Ratio of total allowances for credit losses to net loans | | | | | | | | | | | | | | | | | | | |
| and leases outstanding at period end | | 1.12 | % | | | 1.15 | % | | | 1.18 | % | | | 1.27 | % | | | 1.25 | % |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16
| Sold Loans Being Serviced | | |
| (Unaudited) | | |
| | | |
| | Three Months Ended | |
| (In thousands) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |
| | 2006 | | 2006 | | 2005 | | 2005 | | 2005 | |
| | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 3,183,992 | | $ | 3,382,603 | | $ | 3,561,818 | | $ | 2,910,182 | | $ | 2,995,630 | |
| New loans sold | | 82,553 | | | 59,417 | | | 100,273 | | | 880,808 | | | 120,091 | |
| Payments and other reductions | | (263,444 | ) | | (258,028 | ) | | (279,488 | ) | | (229,172 | ) | | (205,539 | ) |
| Balance at end of period | $ | 3,003,101 | | $ | 3,183,992 | | $ | 3,382,603 | | $ | 3,561,818 | | $ | 2,910,182 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Loan Balances By Portfolio Type | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (In millions) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |
| | 2006 | | 2006 | | 2005 | | 2005 | | 2005 | |
| | | | | | | | | | | | | | | | |
| Loans held for sale | $ | 249 | | $ | 312 | | $ | 256 | | $ | 213 | | $ | 207 | |
| | | | | | | | | | | | | | | | |
| Commercial lending: | | | | | | | | | | | | | | | |
| Commercial and industrial | | 7,539 | | | 7,261 | | | 7,192 | | | 4,885 | | | 4,760 | |
| Leasing | | 407 | | | 383 | | | 373 | | | 359 | | | 361 | |
| Owner occupied | | 5,574 | | | 5,159 | | | 4,825 | | | 4,063 | | | 4,341 | |
| Total commercial lending | | 13,520 | | | 12,803 | | | 12,390 | | | 9,307 | | | 9,462 | |
| | | | | | | | | | | | | | | | |
| Commercial real estate: | | | | | | | | | | | | | | | |
| Construction and land development | | 6,958 | | | 6,292 | | | 6,065 | | | 4,471 | | | 4,091 | |
| Term | | 4,981 | | | 4,847 | | | 4,640 | | | 4,051 | | | 4,118 | |
| Total commercial real estate | | 11,939 | | | 11,139 | | | 10,705 | | | 8,522 | | | 8,209 | |
| | | | | | | | | | | | | | | | |
| Consumer: | | | | | | | | | | | | | | | |
| Home equity credit line and other | | | | | | | | | | | | | | | |
| consumer real estate | | 1,963 | | | 1,892 | | | 1,831 | | | 1,659 | | | 1,709 | |
| 1-4 family residential | | 4,244 | | | 4,191 | | | 4,130 | | | 3,574 | | | 3,564 | |
| Bankcard and other revolving plans | | 279 | | | 254 | | | 207 | | | 195 | | | 208 | |
| Other | | 453 | | | 464 | | | 537 | | | 437 | | | 468 | |
| Total consumer | | 6,939 | | | 6,801 | | | 6,705 | | | 5,865 | | | 5,949 | |
| | | | | | | | | | | | | | | | |
| Foreign loans | | 3 | | | 3 | | | 5 | | | 5 | | | 5 | |
| | | | | | | | | | | | | | | | |
| Other receivables | | 175 | | | 212 | | | 191 | | | 125 | | | 93 | |
| Total loans | $ | 32,825 | | $ | 31,270 | | $ | 30,252 | | $ | 24,037 | | $ | 23,925 | |
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 17
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
| | Three Months Ended | | Three Months Ended |
| | June 30, 2006 | | June 30, 2005 |
| (In thousands) | Average | | Amount of | | Average | | Average | | Amount of | | Average |
| | balance | | interest (1) | | rate | | balance | | interest (1) | | rate |
| ASSETS | | | | | | | | | | | | | | | | | |
| Money market investments | $ | 475,278 | | $ | 5,910 | | 4.99 | % | | $ | 862,354 | | $ | 6,041 | | 2.81 | % |
| Securities: | | | | | | | | | | | | | | | | | |
| Held to maturity | | 644,555 | | | 10,952 | | 6.82 | % | | | 641,161 | | | 11,076 | | 6.93 | % |
| Available for sale | | 5,067,450 | | | 72,255 | | 5.72 | % | | | 3,941,109 | | | 50,385 | | 5.13 | % |
| Trading account | | 164,060 | | | 1,995 | | 4.88 | % | | | 509,282 | | | 5,044 | | 3.97 | % |
| Total securities | | 5,876,065 | | | 85,202 | | 5.82 | % | | | 5,091,552 | | | 66,505 | | 5.24 | % |
| | | | | | | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | | | | | | |
| Loans held for sale | | 266,126 | | | 4,055 | | 6.11 | % | | | 198,547 | | | 2,618 | | 5.29 | % |
| Net loans and leases (2) | | 31,633,927 | | | 597,368 | | 7.57 | % | | | 23,132,123 | | | 385,732 | | 6.69 | % |
| Total loans and leases | | 31,900,053 | | | 601,423 | | 7.56 | % | | | 23,330,670 | | | 388,350 | | 6.68 | % |
| Total interest-earning assets | | 38,251,396 | | | 692,535 | | 7.26 | % | | | 29,284,576 | | | 460,896 | | 6.31 | % |
| Cash and due from banks | | 1,441,444 | | | | | | | | | 1,076,691 | | | | | | |
| Allowance for loan losses | | (345,408 | ) | | | | | | | | (278,262 | ) | | | | | |
| Goodwill | | 1,884,192 | | | | | | | | | 638,932 | | | | | | |
| Core deposit and other intangibles | | 185,281 | | | | | | | | | 53,011 | | | | | | |
| Other assets | | 2,365,717 | | | | | | | | | 1,735,744 | | | | | | |
| Total assets | $ | 43,782,622 | | | | | | | | $ | 32,510,692 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | |
| Savings and NOW | $ | 5,194,174 | | | 17,158 | | 1.32 | % | | $ | 4,325,868 | | | 8,453 | | 0.78 | % |
| Money market | | 10,671,342 | | | 79,973 | | 3.01 | % | | | 8,755,133 | | | 40,783 | | 1.87 | % |
| Time under $100,000 | | 1,985,853 | | | 17,472 | | 3.53 | % | | | 1,452,392 | | | 9,420 | | 2.60 | % |
| Time $100,000 and over | | 2,871,682 | | | 29,098 | | 4.06 | % | | | 1,539,694 | | | 11,528 | | 3.00 | % |
| Foreign | | 1,868,060 | | | 20,854 | | 4.48 | % | | | 554,042 | | | 3,609 | | 2.61 | % |
| Total interest-bearing deposits | | 22,591,111 | | | 164,555 | | 2.92 | % | | | 16,627,129 | | | 73,793 | | 1.78 | % |
| Borrowed funds: | | | | | | | | | | | | | | | | | |
| Securities sold, not yet purchased | | 62,404 | | | 706 | | 4.54 | % | | | 509,818 | | | 4,733 | | 3.72 | % |
| Federal funds purchased and security | | | | | | | | | | | | | | | | | |
| repurchase agreements | | 2,804,139 | | | 29,807 | | 4.26 | % | | | 2,347,220 | | | 15,263 | | 2.61 | % |
| Commercial paper | | 217,033 | | | 2,760 | | 5.10 | % | | | 160,609 | | | 1,246 | | 3.11 | % |
| FHLB advances and other borrowings: | | | | | | | | | | | | | | | | | |
| One year or less | | 800,800 | | | 10,202 | | 5.11 | % | | | 378,659 | | | 2,910 | | 3.08 | % |
| Over one year | | 133,885 | | | 2,059 | | 6.17 | % | | | 227,318 | | | 2,863 | | 5.05 | % |
| Long-term debt | | 2,476,188 | | | 40,185 | | 6.51 | % | | | 1,691,507 | | | 24,000 | | 5.69 | % |
| Total borrowed funds | | 6,494,449 | | | 85,719 | | 5.29 | % | | | 5,315,131 | | | 51,015 | | 3.85 | % |
| Total interest-bearing liabilities | | 29,085,560 | | | 250,274 | | 3.45 | % | | | 21,942,260 | | | 124,808 | | 2.28 | % |
| Noninterest-bearing deposits | | 9,584,091 | | | | | | | | | 7,160,856 | | | | | | |
| Other liabilities | | 669,710 | | | | | | | | | 505,476 | | | | | | |
| Total liabilities | | 39,339,361 | | | | | | | | | 29,608,592 | | | | | | |
| Minority interest | | 28,486 | | | | | | | | | 24,726 | | | | | | |
| Total shareholders' equity | | 4,414,775 | | | | | | | | | 2,877,374 | | | | | | |
| Total liabilities and shareholders' equity | $ | 43,782,622 | | | | | | | | $ | 32,510,692 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Spread on average interest-bearing funds | | | | | | | 3.81 | % | | | | | | | | 4.03 | % |
| Taxable-equivalent net interest income and | | | | | | �� | | | | | | | | | | | |
| net yield on interest-earning assets | | | | $ | 442,261 | | 4.64 | % | | | | | $ | 336,088 | | 4.60 | % |
| (1) | Taxable-equivalent rates used where applicable. |
| (2) | Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. |
ZIONS BANCORPORATION AND SUBSIDIARIESPress Release – Page 18
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
| | Six Months Ended | | Six Months Ended |
| | June 30, 2006 | | June 30, 2005 |
| (In thousands) | Average | | Amount of | | Average | | Average | | Amount of | | Average |
| | balance | | interest (1) | | rate | | balance | | interest (1) | | |
| ASSETS | | | | | | | | | | | |
| Money market investments | $ | 493,398 | | $ | 11,757 | | 4.81 | % | | $ | 839,375 | | $ | 10,679 | | 2.57 | % |
| Securities: | | | | | | | | | | | | | | | | | |
| Held to maturity | | 638,366 | | | 21,676 | | 6.85 | % | | | 639,249 | | | 22,086 | | 6.97 | % |
| Available for sale | | 5,169,446 | | | 144,957 | | 5.65 | % | | | 3,945,609 | | | 98,622 | | 5.04 | % |
| Trading account | | 166,521 | | | 4,069 | | 4.93 | % | | | 556,638 | | | 11,079 | | 4.01 | % |
| Total securities | | 5,974,333 | | | 170,702 | | 5.76 | % | | | 5,141,496 | | | 131,787 | | 5.17 | % |
| | | | | | | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | | | | | | |
| Loans held for sale | | 269,359 | | | 8,101 | | 6.06 | % | | | 192,084 | | | 4,221 | | 4.43 | % |
| Net loans and leases (2) | | 30,919,013 | | | 1,146,022 | | 7.47 | % | | | 22,812,861 | | | 742,219 | | 6.56 | % |
| Total loans and leases | | 31,188,372 | | | 1,154,123 | | 7.46 | % | | | 23,004,945 | | | 746,440 | | 6.54 | % |
| Total interest-earning assets | | 37,656,103 | | | 1,336,582 | | 7.16 | % | | | 28,985,816 | | | 888,906 | | 6.18 | % |
| Cash and due from banks | | 1,489,642 | | | | | | | | | 1,047,569 | | | | | | |
| Allowance for loan losses | | (343,094 | ) | | | | | | | | (275,803 | ) | | | | | |
| Goodwill | | 1,885,862 | | | | | | | | | 640,758 | | | | | | |
| Core deposit and other intangibles | | 190,885 | | | | | | | | | 54,822 | | | | | | |
| Other assets | | 2,338,173 | | | | | | | | | 1,729,496 | | | | | | |
| Total assets | $ | 43,217,571 | | | | | | | | $ | 32,182,658 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | |
| Savings and NOW | $ | 4,924,167 | | | 30,343 | | 1.24 | % | | $ | 4,312,341 | | | 16,000 | | 0.75 | % |
| Money market | | 11,015,663 | | | 153,411 | | 2.81 | % | | | 8,832,113 | | | 73,972 | | 1.69 | % |
| Time under $100,000 | | 1,971,262 | | | 33,334 | | 3.41 | % | | | 1,434,241 | | | 17,457 | | 2.45 | % |
| Time $100,000 and over | | 2,721,493 | | | 52,420 | | 3.88 | % | | | 1,462,923 | | | 20,826 | | 2.87 | % |
| Foreign | | 1,923,369 | | | 41,155 | | 4.31 | % | | | 501,812 | | | 6,161 | | 2.48 | % |
| Total interest-bearing deposits | | 22,555,954 | | | 310,663 | | 2.78 | % | | | 16,543,430 | | | 134,416 | | 1.64 | % |
| Borrowed funds: | | | | | | | | | | | | | | | | | |
| Securities sold, not yet purchased | | 59,881 | | | 1,337 | | 4.50 | % | | | 508,873 | | | 9,243 | | 3.66 | % |
| Federal funds purchased and security | | | | | | | | | | | | | | | | | |
| repurchase agreements | | 2,739,205 | | | 54,973 | | 4.05 | % | | | 2,379,959 | | | 28,415 | | 2.41 | % |
| Commercial paper | | 199,282 | | | 4,842 | | 4.90 | % | | | 152,889 | | | 2,177 | | 2.87 | % |
| FHLB advances and other borrowings: | | | | | | | | | | | | | | | | | |
| One year or less | | 407,519 | | | 10,301 | | 5.10 | % | | | 352,330 | | | 4,946 | | 2.83 | % |
| Over one year | | 163,893 | | | 4,584 | | 5.64 | % | | | 227,590 | | | 5,702 | | 5.05 | % |
| Long-term debt | | 2,489,693 | | | 78,797 | | 6.38 | % | | | 1,691,118 | | | 47,799 | | 5.70 | % |
| Total borrowed funds | | 6,059,473 | | | 154,834 | | 5.15 | % | | | 5,312,759 | | | 98,282 | | 3.73 | % |
| Total interest-bearing liabilities | | 28,615,427 | | | 465,497 | | 3.28 | % | | | 21,856,189 | | | 232,698 | | 2.15 | % |
| Noninterest-bearing deposits | | 9,543,713 | | | | | | | | | 6,963,878 | | | | | | |
| Other liabilities | | 661,775 | | | | | | | | | 486,535 | | | | | | |
| Total liabilities | | 38,820,915 | | | | | | | | | 29,306,602 | | | | | | |
| Minority interest | | 28,355 | | | | | | | | | 24,787 | | | | | | |
| Total shareholders' equity | | 4,368,301 | | | | | | | | | 2,851,269 | | | | | | |
| Total liabilities and shareholders' equity | $ | 43,217,571 | | | | | | | | $ | 32,182,658 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Spread on average interest-bearing funds | | | | | | | 3.88 | % | | | | | | | | 4.03 | % |
| Taxable-equivalent net interest income and | | | | | | | | | | | | | | | | | |
| net yield on interest-earning assets | | | | $ | 871,085 | | 4.66 | % | | | | | $ | 656,208 | | 4.57 | % |
| (1) | Taxable-equivalent rates used where applicable. |
| (2) | Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. |
