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 | October 19, 2006 |
Harris H. Simmons | |
Chairman/Chief Executive Officer |
ZIONS BANCORPORATION REPORTS RECORD EARNINGS OF
$1.42 PER DILUTED SHARE FOR THIRD QUARTER 2006
SALT LAKE CITY, October 19, 2006 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported third quarter net income of $153.7 million, or $1.42 per diluted share. Net income and earnings per share increased 25.0% and 6.0%, respectively, over the $123.0 million, or $1.34 per diluted share for the third quarter of 2005. The return on average common equity was 13.41% for the third quarter of 2006, up from 13.20% for the second quarter of 2006.
All comparisons to the 2005 periods reflect the impact of the Company’s acquisition of Amegy Bancorporation, Inc., which was completed in December 2005.
“We are pleased to again report record quarterly earnings, driven by continued strong loan growth, a relatively stable net interest margin, continued excellent credit quality, and improvements in efficiency,” said Harris H. Simmons, chairman and chief executive officer. “On-balance-sheet loans and leases grew $1.0 billion during the quarter, a very solid performance, as economic activity remained relatively strong throughout most of the West and Southwest,” continued Simmons.
Year-to-date net income for 2006 increased 24.0% to $436.6 million or $4.04 per diluted share compared to $352.0 million, or $3.84 per diluted share for the same period of 2005. The return on
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ZIONS BANCORPORATION
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October 19, 2006
average common equity for the first nine months of 2006 was 13.18% compared to 16.27% for the first nine months of 2005.
Strong Loan Growth
On-balance-sheet net loans and leases were $33.7 billion at September 30, 2006, an increase of approximately $1.0 billion or 12.5% annualized from $32.7 billion at June 30, 2006, and an increase of 40.9% from $23.9 billion at September 30, 2005. Loan growth during the third quarter was in the commercial and commercial real estate categories and was widely diversified geographically.
Deposit Growth
Total deposits at September 30, 2006 increased $387 million to $33.6 billion, an annualized increase of 4.7% from $33.3 billion at June 30, 2006, and increased 32.4% over the balances reported one year ago. Noninterest-bearing demand deposits decreased $414 million during the quarter to $9.8 billion compared to $10.2 billion at June 30, 2006. However, core deposits increased $176 million primarily due to increases in foreign sweep accounts and time deposits under $100,000.
Net Interest Income
Taxable-equivalent net interest income for the quarter was $452.6 million compared to $442.3 million for the second quarter of 2006 and $345.8 million for the third quarter of 2005. For the third quarter of 2006, the net interest margin was 4.58% compared to 4.64% for the second quarter of 2006 and 4.59% for the third quarter of 2005. Net interest income for the third quarter of 2006 increased $10.2 million or 9.3% annualized compared to the second quarter of 2006.
Noninterest Income
For the third quarter of 2006, noninterest income increased to $145.3 million compared with $137.5 million for the second quarter of 2006 and $110.5 million for the third quarter of 2005. Net equity securities gains increased during the quarter primarily due to $12.9 million of net gains on venture capital investments. Net of related minority interest of $9.5 million, income taxes and other expenses, venture
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October 19, 2006
capital investments increased net income by $1.7 million. Loan sales and servicing income decreased primarily because of a pretax impairment charge of $4.1 million on retained interests from certain previous small business loan securitizations; this impairment resulted primarily from increased prepayment speeds.
Noninterest Expense
Noninterest expense for the third quarter of 2006 was $330.0 million compared to $333.0 million for the second quarter of 2006 and $247.7 million for the third quarter of 2005. Salaries and employee benefits increased $4.9 million during the third quarter. The increase was due primarily to increased staffing for sales and business development and to the redeployment of technical staff from the Amegy conversion to other systems conversions whose salaries had previously been charged to merger related expense. Also included in salaries and employee benefits is $4.8 million of stock option compensation expense, up from $4.1 million in the second quarter of 2006.
Merger related expense decreased $6.4 million to $2.5 million for the third quarter of 2006 compared to $8.9 million for the second quarter of 2006, reflecting the completion of certain systems-related conversions for the Amegy acquisition.
The efficiency ratio for the third quarter of 2006 was 55.2% compared to 57.4% for the second quarter of 2006 and 54.3% for the third quarter of 2005. However, the efficiency ratio this quarter was favorably impacted by the inclusion in revenue of the full amount of venture capital gains noted above; adjusted to exclude from revenue the related minority interest, the efficiency ratio would be 56.1%.
Asset Quality
Nonperforming assets were $74.8 million at September 30, 2006 compared to $73.5 million at June 30, 2006 and $83.1 million at September 30, 2005. The ratio of nonperforming assets to net loans and leases and other real estate owned was 0.22% at both September 30, 2006 and June 30, 2006, and down from 0.35% at September 30, 2005.
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ZIONS BANCORPORATION
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October 19, 2006
For the third quarter of 2006, net loan and lease charge-offs were $6.5 million or 0.08% annualized of average loans. This compares with $9.8 million or 0.12% annualized for the second quarter of 2006 and $6.3 million or 0.10% annualized for the third quarter of 2005. The provision for loan losses was $14.4 million for the third quarter of 2006 compared to $17.0 million for the second quarter of 2006 and $12.1 million for the third quarter of 2005. The provision in excess of net charge-offs 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 $15.4 million for the third quarter of 2006, $16.8 million for the second quarter of 2006, and $12.5 million for the third quarter of 2005.
At September 30, 2006, the allowance for loan losses as a percentage of net loans and leases was 1.06% compared to 1.07% at June 30, 2006 and 1.20% at September 30, 2005. At September 30, 2006, the allowance was 549.7% of nonperforming loans. The combined allowances for credit losses (allowance for loan losses plus the allowance for unfunded lending commitments) were $375.0 million or 1.11% of net loans and leases at September 30, 2006 and $303.1 million or 1.27% at September 30, 2005.
Capital Management
The Company’s tangible common equity ratio was 5.92% at September 30, 2006 compared to 5.54% at June 30, 2006 and 7.06% at September 30, 2005. During the third quarter, retained earnings increased by $115 million and accumulated other comprehensive loss decreased by $59 million, while total assets increased by $636 million.
Weighted average common and common-equivalent shares outstanding for the third quarter of 2006 were 108,061,423 compared to 107,883,374 for the second quarter of 2006 and 91,605,279 for the third quarter of 2005. Common shares outstanding at September 30, 2006 were 106,804,606 compared to 106,611,731 at June 30, 2006 and 90,067,016 at September 30, 2005. The increase year over year results primarily from the issuance of 14,351,115 common shares for the Amegy acquisition.
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ZIONS BANCORPORATION
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October 19, 2006
Acquisition
On September 11, 2006, the Company announced that it had signed a definitive agreement to acquire The Stockmen’s Bancorp, Inc., headquartered in Kingman, Arizona, with approximately $1.2 billion of total assets and 43 offices in Arizona and central California. The merger is subject to approval by regulators and by Stockmen’s shareholders. Upon completion of the transaction, which is expected in the first quarter of 2007, Stockmen’s parent company will merge into Zions and the banking subsidiary will merge into Zions’ subsidiary, National Bank of Arizona.
Conference Call
Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 19, 2006). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-299-7089 and entering the passcode 86060861, 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, October 19, through midnight ET on Thursday, October 26, by dialing 1-888-286-8010 and entering the passcode 29236559. 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.
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ZIONS BANCORPORATION
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October 19, 2006
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
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.
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.
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ZIONS BANCORPORATION AND SUBSIDIARIES
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FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands, except per share and ratio data) | September 30, | September 30, | |||||||||||||||||||
2006 | 2005 | % Change | 2006 | 2005 | % Change | ||||||||||||||||
EARNINGS | |||||||||||||||||||||
Taxable-equivalent net interest income | $ | 452,606 | $ | 345,826 | 30.88 | % | $ | 1,323,691 | $ | 1,002,034 | 32.10 | % | |||||||||
Taxable-equivalent revenue | 597,935 | 456,321 | 31.03 | % | 1,735,019 | 1,321,360 | 31.31 | % | |||||||||||||
Net interest income | 446,511 | 340,652 | 31.08 | % | 1,305,685 | 986,531 | 32.35 | % | |||||||||||||
Noninterest income | 145,329 | 110,495 | 31.53 | % | 411,328 | 319,326 | 28.81 | % | |||||||||||||
Provision for loan losses | 14,363 | 12,107 | 18.63 | % | 45,897 | 32,907 | 39.47 | % | |||||||||||||
Noninterest expense | 330,028 | 247,718 | 33.23 | % | 987,511 | 729,002 | 35.46 | % | |||||||||||||
Income before income taxes and minority interest | 247,449 | 191,322 | 29.34 | % | 683,605 | 543,948 | 25.67 | % | |||||||||||||
Income taxes | 83,790 | 68,200 | 22.86 | % | 237,869 | 194,279 | 22.44 | % | |||||||||||||
Minority interest | 9,985 | 152 | 6,469.08 | % | 9,119 | (2,345 | ) | 488.87 | % | ||||||||||||
Net income | 153,674 | 122,970 | 24.97 | % | 436,617 | 352,014 | 24.03 | % | |||||||||||||
PER COMMON SHARE | |||||||||||||||||||||
Net income (diluted) | 1.42 | 1.34 | 5.97 | % | 4.04 | 3.84 | 5.21 | % | |||||||||||||
Dividends | 0.36 | 0.36 | - | 1.08 | 1.08 | - | |||||||||||||||
Book value | 43.47 | 33.30 | 30.54 | % | |||||||||||||||||
SELECTED RATIOS | |||||||||||||||||||||
Return on average assets | 1.36 | % | 1.47 | % | 1.34 | % | 1.45 | % | |||||||||||||
Return on average common equity | 13.41 | % | 16.41 | % | 13.18 | % | 16.27 | % | |||||||||||||
Efficiency ratio | 55.19 | % | 54.29 | % | 56.92 | % | 55.17 | % | |||||||||||||
Net interest margin | 4.58 | % | 4.59 | % | 4.64 | % | 4.57 | % |
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FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands, except share and ratio data) | September 30, | September 30, | |||||||||||||||||||
2006 | 2005 | % Change | 2006 | 2005 | % Change | ||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||||
Total assets | $ | 44,680,382 | $ | 33,218,477 | 34.50 | % | $ | 43,710,533 | $ | 32,531,725 | 34.36 | % | |||||||||
Securities | 5,605,249 | 4,993,735 | 12.25 | % | 5,849,953 | 5,091,701 | 14.89 | % | |||||||||||||
Net loans and leases | 33,105,716 | 24,009,024 | 37.89 | % | 31,834,510 | 23,343,316 | 36.38 | % | |||||||||||||
Goodwill | 1,881,708 | 638,957 | 194.50 | % | 1,884,462 | 640,151 | 194.38 | % | |||||||||||||
Core deposit and other intangibles | 175,259 | 52,276 | 235.26 | % | 185,619 | 53,964 | 243.97 | % | |||||||||||||
Total deposits | 32,964,029 | 24,807,387 | 32.88 | % | 32,390,954 | 23,945,430 | 35.27 | % | |||||||||||||
Core deposits (1) | 29,427,975 | 23,029,389 | 27.78 | % | 29,394,957 | 22,376,328 | 31.37 | % | |||||||||||||
Minority interest | 37,854 | 26,220 | 44.37 | % | 31,556 | 25,270 | 24.88 | % | |||||||||||||
Shareholders' equity | 4,545,990 | 2,972,615 | 52.93 | % | 4,428,182 | 2,892,162 | 53.11 | % | |||||||||||||
Weighted average common and common- | |||||||||||||||||||||
equivalent shares outstanding | 108,061,423 | 91,605,279 | 17.96 | % | 107,949,894 | 91,606,315 | 17.84 | % | |||||||||||||
AT PERIOD END | |||||||||||||||||||||
Total assets | $ | 45,777,747 | $ | 33,422,701 | 36.97 | % | |||||||||||||||
Securities | 5,817,571 | 4,992,339 | 16.53 | % | |||||||||||||||||
Net loans and leases | 33,706,110 | 23,930,017 | 40.85 | % | |||||||||||||||||
Sold loans being serviced (2) | 2,796,644 | 3,561,818 | (21.48 | )% | |||||||||||||||||
Allowance for loan losses | 356,342 | 287,237 | 24.06 | % | |||||||||||||||||
Allowance for unfunded lending commitments | 18,637 | 15,830 | 17.73 | % | |||||||||||||||||
Goodwill | 1,884,328 | 639,120 | 194.83 | % | |||||||||||||||||
Core deposit and other intangibles | 168,135 | 47,670 | 252.71 | % | |||||||||||||||||
Total deposits | 33,640,991 | 25,399,741 | 32.45 | % | |||||||||||||||||
Core deposits (1) | 30,027,827 | 23,507,531 | 27.74 | % | |||||||||||||||||
Minority interest | 41,158 | 26,719 | 54.04 | % | |||||||||||||||||
Shareholders' equity | 4,643,166 | 2,999,173 | 54.81 | % | |||||||||||||||||
Common shares outstanding | 106,804,606 | 90,067,016 | 18.58 | % | |||||||||||||||||
Average equity to average assets | 10.17 | % | 8.95 | % | 10.13 | % | 8.89 | % | |||||||||||||
Common dividend payout | 25.00 | % | 26.47 | % | 26.31 | % | 27.74 | % | |||||||||||||
Tangible common equity ratio | 5.92 | % | 7.06 | % | |||||||||||||||||
Nonperforming assets | 74,815 | 83,101 | (9.97 | )% | |||||||||||||||||
Accruing loans past due 90 days or more | 20,407 | 15,836 | 28.86 | % | |||||||||||||||||
Nonperforming assets to net loans and leases | |||||||||||||||||||||
and other real estate owned at period end | 0.22 | % | 0.35 | % |
(1) | Amount consists of total deposits excluding time deposits $100,000 and over. |
(2) | Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming |
first mortgage residential real estate loans. |
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FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended | |||||||||||||||||||
(In thousands, except per share and ratio data) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2005 | ||||||||||||||||||
EARNINGS | |||||||||||||||||||
Taxable-equivalent net interest income | $ | 452,606 | $ | 442,261 | $ | 428,824 | $ | 380,316 | $ | 345,826 | |||||||||
Taxable-equivalent revenue | 597,935 | 579,772 | 557,312 | 497,943 | 456,321 | ||||||||||||||
Net interest income | 446,511 | 436,327 | 422,847 | 374,819 | 340,652 | ||||||||||||||
Noninterest income | 145,329 | 137,511 | 128,488 | 117,627 | 110,495 | ||||||||||||||
Provision for loan losses | 14,363 | 17,022 | 14,512 | 10,116 | 12,107 | ||||||||||||||
Noninterest expense | 330,028 | 333,028 | 324,455 | 283,789 | 247,718 | ||||||||||||||
Impairment loss on goodwill | - | - | - | 602 | - | ||||||||||||||
Income before income taxes and minority interest | 247,449 | 223,788 | 212,368 | 197,939 | 191,322 | ||||||||||||||
Income taxes | 83,790 | 78,821 | 75,258 | 69,139 | 68,200 | ||||||||||||||
Minority interest | 9,985 | (343 | ) | (523 | ) | 693 | 152 | ||||||||||||
Net income | 153,674 | 145,310 | 137,633 | 128,107 | 122,970 | ||||||||||||||
PER COMMON SHARE | |||||||||||||||||||
Net income (diluted) | 1.42 | 1.35 | 1.28 | 1.32 | 1.34 | ||||||||||||||
Dividends | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | ||||||||||||||
Book value | 43.47 | 41.72 | 40.95 | 40.30 | 33.30 | ||||||||||||||
SELECTED RATIOS | |||||||||||||||||||
Return on average assets | 1.36 | % | 1.33 | % | 1.31 | % | 1.38 | % | 1.47 | % | |||||||||
Return on average common equity | 13.41 | % | 13.20 | % | 12.92 | % | 14.82 | % | 16.41 | % | |||||||||
Efficiency ratio | 55.19 | % | 57.44 | % | 58.22 | % | 56.99 | % | 54.29 | % | |||||||||
Net interest margin | 4.58 | % | 4.64 | % | 4.69 | % | 4.62 | % | 4.59 | % |
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FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended | |||||||||||||||||||
(In thousands, except share and ratio data) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2005 | ||||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||
Total assets | $ | 44,680,382 | $ | 43,782,622 | $ | 42,646,242 | $ | 36,780,719 | $ | 33,218,477 | |||||||||
Securities | 5,605,249 | 5,876,065 | 6,073,692 | 5,352,093 | 4,993,735 | ||||||||||||||
Net loans and leases | 33,105,716 | 31,900,053 | 30,468,784 | 25,982,873 | 24,009,024 | ||||||||||||||
Goodwill | 1,881,708 | 1,884,192 | 1,887,551 | 1,060,381 | 638,957 | ||||||||||||||
Core deposit and other intangibles | 175,259 | 185,281 | 196,551 | 101,593 | 52,276 | ||||||||||||||
Total deposits | 32,964,029 | 32,175,202 | 32,023,293 | 27,605,309 | 24,807,387 | ||||||||||||||
Core deposits (1) | 29,427,975 | 29,303,520 | 29,453,658 | 25,467,323 | 23,029,389 | ||||||||||||||
Minority interest | 37,854 | 28,486 | 28,223 | 27,079 | 26,220 | ||||||||||||||
Shareholders' equity | 4,545,990 | 4,414,775 | 4,321,311 | 3,428,605 | 2,972,615 | ||||||||||||||
Weighted average common and common- | |||||||||||||||||||
equivalent shares outstanding | 108,061,423 | 107,883,374 | 107,724,724 | 96,963,446 | 91,605,279 | ||||||||||||||
AT PERIOD END | |||||||||||||||||||
Total assets | $ | 45,777,747 | $ | 45,142,086 | $ | 43,318,029 | $ | 42,779,639 | $ | 33,422,701 | |||||||||
Securities | 5,817,571 | 5,797,079 | 5,984,115 | 6,057,212 | 4,992,339 | ||||||||||||||
Net loans and leases | 33,706,110 | 32,682,335 | 31,140,326 | 30,126,936 | 23,930,017 | ||||||||||||||
Sold loans being serviced (2) | 2,796,644 | 3,003,101 | 3,183,992 | 3,382,603 | 3,561,818 | ||||||||||||||
Allowance for loan losses | 356,342 | 348,475 | 341,261 | 338,399 | 287,237 | ||||||||||||||
Allowance for unfunded lending commitments | 18,637 | 17,592 | 17,841 | 18,120 | 15,830 | ||||||||||||||
Goodwill | 1,884,328 | 1,881,256 | 1,884,225 | 1,887,588 | 639,120 | ||||||||||||||
Core deposit and other intangibles | 168,135 | 177,692 | 188,384 | 199,166 | 47,670 | ||||||||||||||
Total deposits | 33,640,991 | 33,254,210 | 32,872,708 | 32,642,408 | 25,399,741 | ||||||||||||||
Core deposits (1) | 30,027,827 | 29,851,896 | 30,179,291 | 30,127,812 | 23,507,531 | ||||||||||||||
Minority interest | 41,158 | 28,619 | 28,895 | 27,551 | 26,719 | ||||||||||||||
Shareholders' equity | 4,643,166 | 4,447,330 | 4,343,816 | 4,237,264 | 2,999,173 | ||||||||||||||
Common shares outstanding | 106,804,606 | 106,611,731 | 106,070,045 | 105,147,562 | 90,067,016 | ||||||||||||||
Average equity to average assets | 10.17 | % | 10.08 | % | 10.13 | % | 9.32 | % | 8.95 | % | |||||||||
Common dividend payout | 25.00 | % | 26.37 | % | 27.71 | % | 25.50 | % | 26.47 | % | |||||||||
Tangible common equity ratio | 5.92 | % | 5.54 | % | 5.51 | % | 5.28 | % | 7.06 | % | |||||||||
Nonperforming assets | 74,815 | 73,475 | 96,556 | 89,063 | 83,101 | ||||||||||||||
Accruing loans past due 90 days or more | 20,407 | 29,434 | 10,299 | 17,153 | 15,836 | ||||||||||||||
Nonperforming assets to net loans and leases | |||||||||||||||||||
and other real estate owned at period end | 0.22 | % | 0.22 | % | 0.31 | % | 0.30 | % | 0.35 | % |
(1) | Amount consists of total deposits excluding time deposits $100,000 and over. |
(2) | Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming |
first mortgage residential real estate loans. |
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CONSOLIDATED BALANCE SHEETS
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
(In thousands, except share amounts) | 2006 | 2006 | 2006 | 2005 | 2005 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 1,616,910 | $ | 1,773,829 | $ | 1,584,857 | $ | 1,706,590 | $ | 1,109,202 | |||||||||
Money market investments: | |||||||||||||||||||
Interest-bearing deposits | 39,882 | 87,512 | 51,942 | 22,179 | 13,350 | ||||||||||||||
Federal funds sold | 72,036 | 262,959 | 178,406 | 414,281 | 460,167 | ||||||||||||||
Security resell agreements | 272,643 | 225,160 | 238,762 | 230,282 | 528,763 | ||||||||||||||
Investment securities: | |||||||||||||||||||
Held to maturity, at cost (approximate market value $655,170, | |||||||||||||||||||
$620,786, $633,784, $642,258 and $641,737) | 662,547 | 639,593 | 644,212 | 649,791 | 642,687 | ||||||||||||||
Available for sale, at market | 5,062,409 | 5,086,840 | 5,187,979 | 5,305,859 | 3,997,593 | ||||||||||||||
Trading account, at market (includes $60,331, $50,684, | |||||||||||||||||||
$34,340, $43,444 and $141,535 transferred as collateral | |||||||||||||||||||
under repurchase agreements) | 92,615 | 70,646 | 151,924 | 101,562 | 352,059 | ||||||||||||||
5,817,571 | 5,797,079 | 5,984,115 | 6,057,212 | 4,992,339 | |||||||||||||||
Loans: | |||||||||||||||||||
Loans held for sale | 268,305 | 248,948 | 311,655 | 256,236 | 213,223 | ||||||||||||||
Loans and leases | 33,583,499 | 32,576,017 | 30,958,190 | 29,996,022 | 23,823,715 | ||||||||||||||
33,851,804 | 32,824,965 | 31,269,845 | 30,252,258 | 24,036,938 | |||||||||||||||
Less: | |||||||||||||||||||
Unearned income and fees, net of related costs | 145,694 | 142,630 | 129,519 | 125,322 | 106,921 | ||||||||||||||
Allowance for loan losses | 356,342 | 348,475 | 341,261 | 338,399 | 287,237 | ||||||||||||||
Loans and leases, net of allowance | 33,349,768 | 32,333,860 | 30,799,065 | 29,788,537 | 23,642,780 | ||||||||||||||
Other noninterest-bearing investments | 1,005,989 | 993,379 | 971,569 | 938,515 | 708,368 | ||||||||||||||
Premises and equipment, net | 587,807 | 574,154 | 565,327 | 564,745 | 410,800 | ||||||||||||||
Goodwill | 1,884,328 | 1,881,256 | 1,884,225 | 1,887,588 | 639,120 | ||||||||||||||
Core deposit and other intangibles | 168,135 | 177,692 | 188,384 | 199,166 | 47,670 | ||||||||||||||
Other real estate owned | 9,986 | 16,024 | 24,964 | 19,966 | 15,176 | ||||||||||||||
Other assets | 952,692 | 1,019,182 | 846,413 | 950,578 | 854,966 | ||||||||||||||
$ | 45,777,747 | $ | 45,142,086 | $ | 43,318,029 | $ | 42,779,639 | $ | 33,422,701 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 9,750,064 | $ | 10,163,834 | $ | 9,953,003 | $ | 9,953,833 | $ | 7,725,179 | |||||||||
Interest-bearing: | |||||||||||||||||||
Savings and money market | 15,824,048 | 15,814,128 | 16,354,901 | 16,055,754 | 13,442,012 | ||||||||||||||
Time under $100,000 | 2,154,894 | 2,030,717 | 1,959,351 | 1,938,789 | 1,554,064 | ||||||||||||||
Time $100,000 and over | 3,613,164 | 3,402,314 | 2,693,417 | 2,514,596 | 1,892,210 | ||||||||||||||
Foreign | 2,298,821 | 1,843,217 | 1,912,036 | 2,179,436 | 786,276 | ||||||||||||||
33,640,991 | 33,254,210 | 32,872,708 | 32,642,408 | 25,399,741 | |||||||||||||||
Securities sold, not yet purchased | 53,802 | 27,388 | 55,577 | 64,654 | 331,891 | ||||||||||||||
Federal funds purchased | 2,286,561 | 1,397,694 | 1,484,049 | 1,255,662 | 1,262,646 | ||||||||||||||
Security repurchase agreements | 1,108,771 | 1,169,296 | 1,096,420 | 1,027,658 | 756,631 | ||||||||||||||
Other liabilities | 657,657 | 789,222 | 677,495 | 592,599 | 571,583 | ||||||||||||||
Commercial paper | 265,769 | 245,126 | 153,286 | 167,188 | 149,089 | ||||||||||||||
Federal Home Loan Bank advances and other borrowings: | |||||||||||||||||||
One year or less | 313,259 | 1,216,848 | 4,264 | 18,801 | 13,063 | ||||||||||||||
Over one year | 132,854 | 133,450 | 134,043 | 234,488 | 226,482 | ||||||||||||||
Long-term debt | 2,633,759 | 2,432,903 | 2,467,476 | 2,511,366 | 1,685,683 | ||||||||||||||
Total liabilities | 41,093,423 | 40,666,137 | 38,945,318 | 38,514,824 | 30,396,809 | ||||||||||||||
Minority interest | 41,158 | 28,619 | 28,895 | 27,551 | 26,719 | ||||||||||||||
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 106,804,606, 106,611,731, | |||||||||||||||||||
106,070,045, 105,147,562 and 90,067,016 shares | 2,240,458 | 2,218,711 | 2,197,245 | 2,156,732 | 971,002 | ||||||||||||||
Retained earnings | 2,501,625 | 2,386,369 | 2,279,383 | 2,179,885 | 2,084,439 | ||||||||||||||
Accumulated other comprehensive loss | (89,292 | ) | (148,327 | ) | (123,099 | ) | (83,043 | ) | (52,088 | ) | |||||||||
Deferred compensation | (9,625 | ) | (9,423 | ) | (9,713 | ) | (16,310 | ) | (4,180 | ) | |||||||||
Total shareholders' equity | 4,643,166 | 4,447,330 | 4,343,816 | 4,237,264 | 2,999,173 | ||||||||||||||
$ | 45,777,747 | $ | 45,142,086 | $ | 43,318,029 | $ | 42,779,639 | $ | 33,422,701 |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended | |||||||||||||||||||
(In thousands, except per share amounts) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2006 | 2006 | 2005 | 2005 | |||||||||||||||
Interest income: | |||||||||||||||||||
Interest and fees on loans | $ | 638,610 | $ | 591,139 | $ | 542,784 | $ | 458,429 | $ | 406,319 | |||||||||
Interest on loans held for sale | 4,275 | 4,055 | 4,046 | 3,131 | 2,462 | ||||||||||||||
Lease financing | 4,690 | 4,496 | 4,130 | 4,010 | 3,980 | ||||||||||||||
Interest on money market investments | 6,431 | 5,910 | 5,847 | 13,280 | 7,723 | ||||||||||||||
Interest on securities: | |||||||||||||||||||
Held to maturity – taxable | 2,217 | 2,209 | 2,215 | 1,866 | 1,827 | ||||||||||||||
Held to maturity – nontaxable | 5,732 | 5,683 | 5,531 | 5,948 | 6,066 | ||||||||||||||
Available for sale – taxable | 66,078 | 68,995 | 69,104 | 56,267 | 49,339 | ||||||||||||||
Available for sale – nontaxable | 2,089 | 2,119 | 2,339 | 1,433 | 808 | ||||||||||||||
Trading account | 1,621 | 1,995 | 2,074 | 4,038 | 4,753 | ||||||||||||||
Total interest income | 731,743 | 686,601 | 638,070 | 548,402 | 483,277 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Interest on savings and money market deposits | 109,410 | 97,131 | 86,623 | 71,093 | 59,539 | ||||||||||||||
Interest on time and foreign deposits | 86,635 | 67,424 | 59,485 | 43,740 | 31,536 | ||||||||||||||
Interest on short-term borrowings | 46,968 | 43,475 | 27,978 | 24,155 | 23,213 | ||||||||||||||
Interest on long-term debt | 42,219 | 42,244 | 41,137 | 34,595 | 28,337 | ||||||||||||||
Total interest expense | 285,232 | 250,274 | 215,223 | 173,583 | 142,625 | ||||||||||||||
Net interest income | 446,511 | 436,327 | 422,847 | 374,819 | 340,652 | ||||||||||||||
Provision for loan losses | 14,363 | 17,022 | 14,512 | 10,116 | 12,107 | ||||||||||||||
Net interest income after provision for loan losses | 432,148 | 419,305 | 408,335 | 364,703 | 328,545 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Service charges and fees on deposit accounts | 41,991 | 41,414 | 40,038 | 34,375 | 32,233 | ||||||||||||||
Loan sales and servicing income | 10,972 | 15,058 | 15,468 | 21,315 | 21,649 | ||||||||||||||
Other service charges, commissions and fees | 44,711 | 42,779 | 39,931 | 32,973 | 28,877 | ||||||||||||||
Trust and investment management income | 5,549 | 5,312 | 4,696 | 4,489 | 3,923 | ||||||||||||||
Income from securities conduit | 7,741 | 8,492 | 8,406 | 8,977 | 8,553 | ||||||||||||||
Dividends and other investment income | 10,403 | 9,946 | 9,209 | 7,642 | 6,954 | ||||||||||||||
Market making, trading and nonhedge derivative income | 3,641 | 5,444 | 4,425 | 1,352 | 4,069 | ||||||||||||||
Equity securities gains (losses), net | 13,180 | (1,764 | ) | 550 | 1,764 | 1,089 | |||||||||||||
Fixed income securities gains, net | 1,563 | 5,156 | 251 | 423 | 276 | ||||||||||||||
Other | 5,578 | 5,674 | 5,514 | 4,317 | 2,872 | ||||||||||||||
Total noninterest income | 145,329 | 137,511 | 128,488 | 117,627 | 110,495 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries and employee benefits | 190,554 | 185,643 | 185,855 | 154,942 | 142,590 | ||||||||||||||
Occupancy, net | 25,807 | 24,549 | 24,081 | 21,388 | 19,048 | ||||||||||||||
Furniture and equipment | 20,361 | 22,737 | 23,004 | 19,032 | 16,979 | ||||||||||||||
Legal and professional services | 11,386 | 9,005 | 8,509 | 10,012 | 8,575 | ||||||||||||||
Postage and supplies | 8,313 | 8,646 | 7,715 | 7,043 | 6,510 | ||||||||||||||
Advertising | 6,566 | 6,814 | 5,985 | 6,061 | 5,875 | ||||||||||||||
Impairment losses on long-lived assets | - | - | 1,304 | 2,500 | - | ||||||||||||||
Restructuring charges | - | - | 17 | 2,351 | - | ||||||||||||||
Merger related expense | 2,549 | 8,906 | 6,807 | 3,103 | 207 | ||||||||||||||
Amortization of core deposit and other intangibles | 10,716 | 10,692 | 10,693 | 6,092 | 3,684 | ||||||||||||||
Provision for unfunded lending commitments | 1,045 | (249 | ) | (279 | ) | 277 | 435 | ||||||||||||
Other | 52,731 | 56,285 | 50,764 | 50,988 | 43,815 | ||||||||||||||
Total noninterest expense | 330,028 | 333,028 | 324,455 | 283,789 | 247,718 | ||||||||||||||
Impairment loss on goodwill | - | - | - | 602 | - | ||||||||||||||
Income before income taxes and minority interest | 247,449 | 223,788 | 212,368 | 197,939 | 191,322 | ||||||||||||||
Income taxes | 83,790 | 78,821 | 75,258 | 69,139 | 68,200 | ||||||||||||||
Minority interest | 9,985 | (343 | ) | (523 | ) | 693 | 152 | ||||||||||||
Net income | $ | 153,674 | $ | 145,310 | $ | 137,633 | $ | 128,107 | $ | 122,970 | |||||||||
Weighted average shares outstanding during the period: | |||||||||||||||||||
Basic shares | 106,285 | 106,001 | 105,472 | 95,002 | 89,980 | ||||||||||||||
Diluted shares | 108,061 | 107,883 | 107,725 | 96,963 | 91,605 | ||||||||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 1.45 | $ | 1.37 | $ | 1.30 | $ | 1.35 | $ | 1.37 | |||||||||
Diluted | 1.42 | 1.35 | 1.28 | 1.32 | 1.34 |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Unaudited)
Nine Months Ended | |||||||
(In thousands, except per share amounts) | September 30, | ||||||
2006 | 2005 | ||||||
Interest income: | |||||||
Interest and fees on loans | $ | 1,772,533 | $ | 1,137,487 | |||
Interest on loans held for sale | 12,376 | 6,683 | |||||
Lease financing | 13,316 | 12,069 | |||||
Interest on money market investments | 18,188 | 18,402 | |||||
Interest on securities: | |||||||
Held to maturity – taxable | 6,641 | 5,465 | |||||
Held to maturity – nontaxable | 16,946 | 18,057 | |||||
Available for sale – taxable | 204,177 | 145,361 | |||||
Available for sale – nontaxable | 6,547 | 2,498 | |||||
Trading account | 5,690 | 15,832 | |||||
Total interest income | 2,056,414 | 1,361,854 | |||||
Interest expense: | |||||||
Interest on savings and money market deposits | 293,164 | 149,511 | |||||
Interest on time and foreign deposits | 213,544 | 75,980 | |||||
Interest on short-term borrowings | 118,421 | 67,994 | |||||
Interest on long-term debt | 125,600 | 81,838 | |||||
Total interest expense | 750,729 | 375,323 | |||||
Net interest income | 1,305,685 | 986,531 | |||||
Provision for loan losses | 45,897 | 32,907 | |||||
Net interest income after provision for loan losses | 1,259,788 | 953,624 | |||||
Noninterest income: | |||||||
Service charges and fees on deposit accounts | 123,443 | 94,421 | |||||
Loan sales and servicing income | 41,861 | 56,507 | |||||
Other service charges, commissions and fees | 127,058 | 83,662 | |||||
Trust and investment management income | 15,557 | 11,994 | |||||
Income from securities conduit | 24,639 | 25,989 | |||||
Dividends and other investment income | 29,558 | 22,398 | |||||
Market making, trading and nonhedge derivative income | 13,510 | 14,362 | |||||
Equity securities gains (losses), net | 11,966 | (3,076 | ) | ||||
Fixed income securities gains, net | 6,970 | 422 | |||||
Other | 16,766 | 12,647 | |||||
Total noninterest income | 411,328 | 319,326 | |||||
Noninterest expense: | |||||||
Salaries and employee benefits | 562,052 | 418,960 | |||||
Occupancy, net | 74,437 | 56,005 | |||||
Furniture and equipment | 66,102 | 49,158 | |||||
Legal and professional services | 28,900 | 24,792 | |||||
Postage and supplies | 24,674 | 19,796 | |||||
Advertising | 19,365 | 15,303 | |||||
Impairment losses on long-lived assets | 1,304 | 633 | |||||
Restructuring charges | 17 | 92 | |||||
Merger related expense | 18,262 | 207 | |||||
Amortization of core deposit and other intangibles | 32,101 | 10,813 | |||||
Provision for unfunded lending commitments | 517 | 3,148 | |||||
Other | 159,780 | 130,095 | |||||
Total noninterest expense | 987,511 | 729,002 | |||||
Income before income taxes and minority interest | 683,605 | 543,948 | |||||
Income taxes | 237,869 | 194,279 | |||||
Minority interest | 9,119 | (2,345 | ) | ||||
Net income | $ | 436,617 | $ | 352,014 | |||
Weighted average shares outstanding during the period: | |||||||
Basic shares | 105,922 | 89,901 | |||||
Diluted shares | 107,950 | 91,606 | |||||
Net income per common share: | |||||||
Basic | $ | 4.12 | $ | 3.92 | |||
Diluted | 4.04 | 3.84 |
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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 | 436,617 | 436,617 | |||||||||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||||
Net realized and unrealized holding losses | |||||||||||||||||||
on investments and retained interests | (1,865 | ) | |||||||||||||||||
Foreign currency translation | 646 | ||||||||||||||||||
Reclassification for net realized gains | |||||||||||||||||||
on investments recorded in operations | (11,693 | ) | |||||||||||||||||
Net unrealized gains on derivative instruments | 6,663 | ||||||||||||||||||
Other comprehensive loss | (6,249 | ) | (6,249 | ) | |||||||||||||||
Total comprehensive income | 430,368 | ||||||||||||||||||
Stock redeemed and retired | (1,439 | ) | (1,439 | ) | |||||||||||||||
Net stock options exercised | 79,014 | 79,014 | |||||||||||||||||
Reversal of deferred compensation, adoption | |||||||||||||||||||
of SFAS 123R | (11,111 | ) | 11,111 | - | |||||||||||||||
Share-based compensation | 17,262 | 17,262 | |||||||||||||||||
Cash dividends – common, $1.08 per share | (114,877 | ) | (114,877 | ) | |||||||||||||||
Change in deferred compensation | (4,426 | ) | (4,426 | ) | |||||||||||||||
Balance, September 30, 2006 | $ | 2,240,458 | $ | 2,501,625 | $ | (89,292 | ) | $ | (9,625 | ) | $ | 4,643,166 | |||||||
Balance, December 31, 2004 | $ | 972,065 | $ | 1,830,064 | $ | (7,932 | ) | $ | (4,218 | ) | $ | 2,789,979 | |||||||
Comprehensive income: | |||||||||||||||||||
Net income for the period | 352,014 | 352,014 | |||||||||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||||
Net realized and unrealized holding losses | |||||||||||||||||||
on investments and retained interests | (9,122 | ) | |||||||||||||||||
Foreign currency translation | (1,313 | ) | |||||||||||||||||
Reclassification for net realized gains | |||||||||||||||||||
on investments recorded in operations | (323 | ) | |||||||||||||||||
Net unrealized losses on derivative instruments | (33,398 | ) | |||||||||||||||||
Other comprehensive loss | (44,156 | ) | (44,156 | ) | |||||||||||||||
Total comprehensive income | 307,858 | ||||||||||||||||||
Stock redeemed and retired | (80,795 | ) | (80,795 | ) | |||||||||||||||
Net stock options exercised and restricted stock issued | 79,732 | 79,732 | |||||||||||||||||
Cash dividends – common, $1.08 per share | (97,639 | ) | (97,639 | ) | |||||||||||||||
Change in deferred compensation | 38 | 38 | |||||||||||||||||
Balance, September 30, 2005 | $ | 971,002 | $ | 2,084,439 | $ | (52,088 | ) | $ | (4,180 | ) | $ | 2,999,173 |
Total comprehensive income for the three months ended September 30, 2006 and 2005 was $212,709 and $83,787, respectively.
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
Nonperforming Assets | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2006 | 2006 | 2005 | 2005 | |||||||||||||||
Nonaccrual loans | $ | 64,650 | $ | 57,249 | $ | 71,376 | $ | 68,717 | $ | 67,248 | |||||||||
Restructured loans | 179 | 202 | 216 | 380 | 677 | ||||||||||||||
Other real estate owned | 9,986 | 16,024 | 24,964 | 19,966 | 15,176 | ||||||||||||||
Total | $ | 74,815 | $ | 73,475 | $ | 96,556 | $ | 89,063 | $ | 83,101 | |||||||||
% of net loans and leases* and other real | |||||||||||||||||||
estate owned | 0.22 | % | 0.22 | % | 0.31 | % | 0.30 | % | 0.35 | % | |||||||||
Accruing loans past due 90 days or more | $ | 20,407 | $ | 29,434 | $ | 10,299 | $ | 17,153 | $ | 15,836 | |||||||||
% of net loans and leases* | 0.06 | % | 0.09 | % | 0.03 | % | 0.06 | % | 0.07 | % | |||||||||
*Includes loans held for sale. |
Allowances for Credit Losses | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(In thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2006 | 2006 | 2005 | 2005 | |||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||
Balance at beginning of period | $ | 348,475 | $ | 341,261 | $ | 338,399 | $ | 287,237 | $ | 281,428 | |||||||||
Allowance of company acquired | - | - | - | 49,217 | - | ||||||||||||||
Add: | |||||||||||||||||||
Provision for losses | 14,363 | 17,022 | 14,512 | 10,116 | 12,107 | ||||||||||||||
Deduct: | |||||||||||||||||||
Loan and lease charge-offs | (10,882 | ) | (16,082 | ) | (15,609 | ) | (12,168 | ) | (10,883 | ) | |||||||||
Recoveries | 4,386 | 6,274 | 3,959 | 3,997 | 4,585 | ||||||||||||||
Net loan and lease charge-offs | (6,496 | ) | (9,808 | ) | (11,650 | ) | (8,171 | ) | (6,298 | ) | |||||||||
Balance at end of period | $ | 356,342 | $ | 348,475 | $ | 341,261 | $ | 338,399 | $ | 287,237 | |||||||||
Ratio of allowance for loan losses to net loans | |||||||||||||||||||
and leases outstanding at period end | 1.06 | % | 1.07 | % | 1.10 | % | 1.12 | % | 1.20 | % | |||||||||
Ratio of allowance for loan losses to nonperforming | |||||||||||||||||||
loans at period end | 549.66 | % | 606.56 | % | 476.67 | % | 489.74 | % | 422.87 | % | |||||||||
Allowance for Unfunded Lending Commitments | |||||||||||||||||||
Balance at beginning of period | $ | 17,592 | $ | 17,841 | $ | 18,120 | $ | 15,830 | $ | 15,395 | |||||||||
Allowance of company acquired | - | - | - | 2,013 | - | ||||||||||||||
Provision charged (credited) against earnings | 1,045 | (249 | ) | (279 | ) | 277 | 435 | ||||||||||||
Balance at end of period | $ | 18,637 | $ | 17,592 | $ | 17,841 | $ | 18,120 | $ | 15,830 | |||||||||
Total Allowances for Credit Losses | |||||||||||||||||||
Allowance for loan losses | $ | 356,342 | $ | 348,475 | $ | 341,261 | $ | 338,399 | $ | 287,237 | |||||||||
Allowance for unfunded lending commitments | 18,637 | 17,592 | 17,841 | 18,120 | 15,830 | ||||||||||||||
Total allowances for credit losses | $ | 374,979 | $ | 366,067 | $ | 359,102 | $ | 356,519 | $ | 303,067 | |||||||||
Ratio of total allowances for credit losses to net loans | |||||||||||||||||||
and leases outstanding at period end | 1.11 | % | 1.12 | % | 1.15 | % | 1.18 | % | 1.27 | % |
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Press Release – Page 16
Sold Loans Being Serviced | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(In thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2006 | 2006 | 2005 | 2005 | |||||||||||||||
Balance at beginning of period | $ | 3,003,101 | $ | 3,183,992 | $ | 3,382,603 | $ | 3,561,818 | $ | 2,910,182 | |||||||||
New loans sold | 46,073 | 82,553 | 59,417 | 100,273 | 880,808 | ||||||||||||||
Payments and other reductions | (252,530 | ) | (263,444 | ) | (258,028 | ) | (279,488 | ) | (229,172 | ) | |||||||||
Balance at end of period | $ | 2,796,644 | $ | 3,003,101 | $ | 3,183,992 | $ | 3,382,603 | $ | 3,561,818 |
Loan Balances By Portfolio Type | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In millions) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
2006 | 2006 | 2006 | 2005 | 2005 | |||||||||||||||
Loans held for sale | $ | 268 | $ | 249 | $ | 312 | $ | 256 | $ | 213 | |||||||||
Commercial lending: | |||||||||||||||||||
Commercial and industrial | 7,846 | 7,539 | 7,261 | 7,192 | 4,885 | ||||||||||||||
Leasing | 420 | 407 | 383 | 373 | 359 | ||||||||||||||
Owner occupied | 5,855 | 5,574 | 5,159 | 4,825 | 4,063 | ||||||||||||||
Total commercial lending | 14,121 | 13,520 | 12,803 | 12,390 | 9,307 | ||||||||||||||
Commercial real estate: | |||||||||||||||||||
Construction and land development | 7,362 | 6,958 | 6,292 | 6,065 | 4,471 | ||||||||||||||
Term | 4,960 | 4,981 | 4,847 | 4,640 | 4,051 | ||||||||||||||
Total commercial real estate | 12,322 | 11,939 | 11,139 | 10,705 | 8,522 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity credit line and other | |||||||||||||||||||
consumer real estate | 1,944 | 1,963 | 1,892 | 1,831 | 1,659 | ||||||||||||||
1-4 family residential | 4,255 | 4,244 | 4,191 | 4,130 | 3,574 | ||||||||||||||
Bankcard and other revolving plans | 281 | 279 | 254 | 207 | 195 | ||||||||||||||
Other | 458 | 453 | 464 | 537 | 437 | ||||||||||||||
Total consumer | 6,938 | 6,939 | 6,801 | 6,705 | 5,865 | ||||||||||||||
Foreign loans | 3 | 3 | 3 | 5 | 5 | ||||||||||||||
Other receivables | 200 | 175 | 212 | 191 | 125 | ||||||||||||||
Total loans | $ | 33,852 | $ | 32,825 | $ | 31,270 | $ | 30,252 | $ | 24,037 |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 17
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2006 | September 30, 2005 | |||||||||||||||||||||
(In thousands) | Average | Amount of | Average | Average | Amount of | Average | ||||||||||||||||
balance | interest (1) | rate | balance | interest (1) | rate | |||||||||||||||||
ASSETS | ||||||||||||||||||||||
Money market investments | $ | 461,418 | $ | 6,431 | 5.53 | % | $ | 915,954 | $ | 7,723 | 3.35 | % | ||||||||||
Securities: | ||||||||||||||||||||||
Held to maturity | 643,942 | 11,036 | 6.80 | % | 641,745 | 11,159 | 6.90 | % | ||||||||||||||
Available for sale | 4,825,151 | 69,292 | 5.70 | % | 3,866,988 | 50,582 | 5.19 | % | ||||||||||||||
Trading account | 136,156 | 1,621 | 4.72 | % | 485,002 | 4,753 | 3.89 | % | ||||||||||||||
Total securities | 5,605,249 | 81,949 | 5.80 | % | 4,993,735 | 66,494 | 5.28 | % | ||||||||||||||
Loans: | ||||||||||||||||||||||
Loans held for sale | 259,540 | 4,275 | 6.53 | % | 187,692 | 2,462 | 5.20 | % | ||||||||||||||
Net loans and leases (2) | 32,846,176 | 645,183 | 7.79 | % | 23,821,332 | 411,772 | 6.86 | % | ||||||||||||||
Total loans and leases | 33,105,716 | 649,458 | 7.78 | % | 24,009,024 | 414,234 | 6.85 | % | ||||||||||||||
Total interest-earning assets | 39,172,383 | 737,838 | 7.47 | % | 29,918,713 | 488,451 | 6.48 | % | ||||||||||||||
Cash and due from banks | 1,458,223 | 1,123,297 | ||||||||||||||||||||
Allowance for loan losses | (351,495 | ) | (284,423 | ) | ||||||||||||||||||
Goodwill | 1,881,708 | 638,957 | ||||||||||||||||||||
Core deposit and other intangibles | 175,259 | 52,276 | ||||||||||||||||||||
Other assets | 2,344,304 | 1,769,657 | ||||||||||||||||||||
Total assets | $ | 44,680,382 | $ | 33,218,477 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Savings and NOW | $ | 5,298,397 | 21,223 | 1.59 | % | $ | 4,341,774 | 9,498 | 0.87 | % | ||||||||||||
Money market | 10,526,512 | 88,187 | 3.32 | % | 9,006,189 | 50,041 | 2.20 | % | ||||||||||||||
Time under $100,000 | 2,093,886 | 20,664 | 3.92 | % | 1,522,194 | 10,941 | 2.85 | % | ||||||||||||||
Time $100,000 and over | 3,536,054 | 40,876 | 4.59 | % | 1,777,998 | 14,954 | 3.34 | % | ||||||||||||||
Foreign | 2,043,999 | 25,095 | 4.87 | % | 715,838 | 5,641 | 3.13 | % | ||||||||||||||
Total interest-bearing deposits | 23,498,848 | 196,045 | 3.31 | % | 17,363,993 | 91,075 | 2.08 | % | ||||||||||||||
Borrowed funds: | ||||||||||||||||||||||
Securities sold, not yet purchased | 62,661 | 715 | 4.53 | % | 503,722 | 4,660 | 3.67 | % | ||||||||||||||
Federal funds purchased and security | ||||||||||||||||||||||
repurchase agreements | 2,725,315 | 31,547 | 4.59 | % | 2,186,773 | 16,368 | 2.97 | % | ||||||||||||||
Commercial paper | 246,220 | 3,375 | 5.44 | % | 143,239 | 1,294 | 3.58 | % | ||||||||||||||
FHLB advances and other borrowings: | ||||||||||||||||||||||
One year or less | 832,503 | 11,331 | 5.40 | % | 107,606 | 891 | 3.29 | % | ||||||||||||||
Over one year | 133,124 | 1,859 | 5.54 | % | 226,786 | 2,885 | 5.05 | % | ||||||||||||||
Long-term debt | 2,458,900 | 40,360 | 6.51 | % | 1,701,575 | 25,452 | 5.93 | % | ||||||||||||||
Total borrowed funds | 6,458,723 | 89,187 | 5.48 | % | 4,869,701 | 51,550 | 4.20 | % | ||||||||||||||
Total interest-bearing liabilities | 29,957,571 | 285,232 | 3.78 | % | 22,233,694 | 142,625 | 2.55 | % | ||||||||||||||
Noninterest-bearing deposits | 9,465,181 | 7,443,394 | ||||||||||||||||||||
Other liabilities | 673,786 | 542,554 | ||||||||||||||||||||
Total liabilities | 40,096,538 | 30,219,642 | ||||||||||||||||||||
Minority interest | 37,854 | 26,220 | ||||||||||||||||||||
Total shareholders' equity | 4,545,990 | 2,972,615 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 44,680,382 | $ | 33,218,477 | ||||||||||||||||||
Spread on average interest-bearing funds | 3.69 | % | 3.93 | % | ||||||||||||||||||
Taxable-equivalent net interest income and | ||||||||||||||||||||||
net yield on interest-earning assets | $ | 452,606 | 4.58 | % | $ | 345,826 | 4.59 | % |
(1) | Taxable-equivalent rates used where applicable. |
(2) | Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 18
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2006 | September 30, 2005 | ||||||||||||||||||||
(In thousands) | Average | Amount of | Average | Average | Amount of | Average | |||||||||||||||
balance | interest (1) | rate | balance | interest (1) | rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Money market investments | $ | 482,621 | $ | 18,188 | 5.04 | % | $ | 865,182 | $ | 18,402 | 2.84 | % | |||||||||
Securities: | |||||||||||||||||||||
Held to maturity | 640,245 | 32,712 | 6.83 | % | 640,090 | 33,245 | 6.94 | % | |||||||||||||
Available for sale | 5,053,420 | 214,249 | 5.67 | % | 3,919,114 | 149,204 | 5.09 | % | |||||||||||||
Trading account | 156,288 | 5,690 | 4.87 | % | 532,497 | 15,832 | 3.98 | % | |||||||||||||
Total securities | 5,849,953 | 252,651 | 5.77 | % | 5,091,701 | 198,281 | 5.21 | % | |||||||||||||
Loans: | |||||||||||||||||||||
Loans held for sale | 266,050 | 12,376 | 6.22 | % | 190,604 | 6,683 | 4.69 | % | |||||||||||||
Net loans and leases (2) | 31,568,460 | 1,791,205 | 7.59 | % | 23,152,712 | 1,153,991 | 6.66 | % | |||||||||||||
Total loans and leases | 31,834,510 | 1,803,581 | 7.57 | % | 23,343,316 | 1,160,674 | 6.65 | % | |||||||||||||
Total interest-earning assets | 38,167,084 | 2,074,420 | 7.27 | % | 29,300,199 | 1,377,357 | 6.29 | % | |||||||||||||
Cash and due from banks | 1,479,054 | 1,073,089 | |||||||||||||||||||
Allowance for loan losses | (345,925 | ) | (278,708 | ) | |||||||||||||||||
Goodwill | 1,884,462 | 640,151 | |||||||||||||||||||
Core deposit and other intangibles | 185,619 | 53,964 | |||||||||||||||||||
Other assets | 2,340,239 | 1,743,030 | |||||||||||||||||||
Total assets | $ | 43,710,533 | $ | 32,531,725 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Savings and NOW | $ | 5,050,281 | 51,566 | 1.37 | % | $ | 4,322,260 | 25,498 | 0.79 | % | |||||||||||
Money market | 10,850,821 | 241,598 | 2.98 | % | 8,890,776 | 124,013 | 1.86 | % | |||||||||||||
Time under $100,000 | 2,012,586 | 53,998 | 3.59 | % | 1,463,881 | 28,398 | 2.59 | % | |||||||||||||
Time $100,000 and over | 2,995,997 | 93,296 | 4.16 | % | 1,569,102 | 35,780 | 3.05 | % | |||||||||||||
Foreign | 1,964,021 | 66,250 | 4.51 | % | 573,938 | 11,802 | 2.75 | % | |||||||||||||
Total interest-bearing deposits | 22,873,706 | 506,708 | 2.96 | % | 16,819,957 | 225,491 | 1.79 | % | |||||||||||||
Borrowed funds: | |||||||||||||||||||||
Securities sold, not yet purchased | 60,818 | 2,052 | 4.51 | % | 507,137 | 13,903 | 3.67 | % | |||||||||||||
Federal funds purchased and security | |||||||||||||||||||||
repurchase agreements | 2,734,524 | 86,520 | 4.23 | % | 2,314,856 | 44,783 | 2.59 | % | |||||||||||||
Commercial paper | 215,100 | 8,217 | 5.11 | % | 149,637 | 3,471 | 3.10 | % | |||||||||||||
FHLB advances and other borrowings: | |||||||||||||||||||||
One year or less | 550,737 | 21,632 | 5.25 | % | 269,859 | 5,837 | 2.89 | % | |||||||||||||
Over one year | 153,524 | 6,443 | 5.61 | % | 227,319 | 8,587 | 5.05 | % | |||||||||||||
Long-term debt | 2,479,316 | 119,157 | 6.43 | % | 1,694,642 | 73,251 | 5.78 | % | |||||||||||||
Total borrowed funds | 6,194,019 | 244,021 | 5.27 | % | 5,163,450 | 149,832 | 3.88 | % | |||||||||||||
Total interest-bearing liabilities | 29,067,725 | 750,729 | 3.45 | % | 21,983,407 | 375,323 | 2.28 | % | |||||||||||||
Noninterest-bearing deposits | 9,517,248 | 7,125,473 | |||||||||||||||||||
Other liabilities | 665,822 | 505,413 | |||||||||||||||||||
Total liabilities | 39,250,795 | 29,614,293 | |||||||||||||||||||
Minority interest | 31,556 | 25,270 | |||||||||||||||||||
Total shareholders' equity | 4,428,182 | 2,892,162 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 43,710,533 | $ | 32,531,725 | |||||||||||||||||
Spread on average interest-bearing funds | 3.82 | % | 4.01 | % | |||||||||||||||||
Taxable-equivalent net interest income and | |||||||||||||||||||||
net yield on interest-earning assets | $ | 1,323,691 | 4.64 | % | $ | 1,002,034 | 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. |
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