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 | April 20, 2006 | |||
Harris H. Simmons | ||||
Chairman/Chief Executive Officer |
ZIONS BANCORPORATION REPORTS EARNINGS OF
$1.28 PER DILUTED SHARE FOR FIRST QUARTER 2006
Reported Earnings Include Impact of Merger Related Expenses
and Adoption of SFAS 123R
SALT LAKE CITY, April 20, 2006 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported first-quarter net income of $137.6 million, or $1.28 per diluted share. Net income and earnings per diluted share increased 24.9% and 6.7% over the $110.2 million, or $1.20 per diluted share reported for the first quarter of 2005. The return on average common equity was 12.92% in the first quarter of 2006 compared to 15.83% for the same period in 2005.
Results of operations for the first quarter of 2006 include Amegy Corporation (“Amegy”), which was acquired by Zions on December 3, 2005; results of operations for the fourth quarter of 2005 include one month of Amegy. The first quarter of 2006 includes after-tax merger related expenses of $3.6 million ($.03 per diluted share) related to the Amegy acquisition and related systems conversion efforts.
Effective January 1, 2006, the Company adopted SFAS No. 123 (revised 2004)Share-Based Payment (“SFAS 123R”) using the “modified prospective” method. The after-tax effect of the adoption on earnings for the first quarter of 2006 was to reduce net income by $2.8 million or $.03 per diluted share.
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ZIONS BANCORPORATION
Press Release – Page 2
April 20, 2006
“We are very pleased to report strong quarterly earnings driven by continued strength in loan growth and in the net interest margin,” said Harris H. Simmons, chairman and chief executive officer. “The integration of Amegy is well under way,” continued Mr. Simmons. “We expect to see additional expense savings in future quarters resulting from the successful conversion of Amegy systems and further integration of corporate functions.”
Strong Loan and Deposit Growth
On-balance-sheet net loans and leases at March 31, 2006 were $31.1 billion, an annualized increase of 13.5% from $30.1 billion at December 31, 2005, and an increase of 35.6% from $23.0 billion at March 31, 2005. Zions experienced strong loan growth during the first quarter in commercial and commercial real estate loan categories; this growth was diversified geographically.
Total period-end deposits for the first quarter of 2006 increased to $32.9 billion, an annualized increase of 2.8% from $32.6 billion at December 31, 2005, and an increase of 37.7% from $23.9 billion at March 31, 2005. Noninterest-bearing demand deposits at March 31, 2006 were essentially unchanged from December 31, 2005. Savings and money market deposit period-end balances increased to $16.4 billion, an annualized increase of 7.5% from $16.1 billion at December 31, 2005.
Loan and deposit totals at March 31, 2006 and December 31, 2005 include Amegy, which was acquired in December 2005.
Net Interest Income
Taxable-equivalent net interest income for the first quarter of 2006 was $428.8 million, an increase of 34.0% compared to $320.1 million for the first quarter of 2005. The increase reflects the acquisition of Amegy, the previously discussed loan and deposit growth, and an improved net interest margin. For the first quarter of 2006, the net interest margin was 4.69%, compared to 4.62% for the fourth quarter of 2005 and 4.53% for the first quarter of 2005.
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ZIONS BANCORPORATION
Press Release – Page 3
April 20, 2006
Noninterest Income
For the first quarter of 2006, noninterest income increased 10.1% to $129.9 million compared with $118.0 million for the fourth quarter of 2005, and 26.2% compared with $103.0 million for the first quarter of 2005. The increases in total and individual categories of noninterest income for the first quarter of 2006 compared to the fourth and first quarters of 2005 were mainly due to the Amegy acquisition.
Loan sales and servicing income declined by approximately $5.8 million in the first quarter of 2006 compared to the fourth quarter of 2005 due to decreased loans sales during the quarter and the impact of rising rates on excess servicing income.
Noninterest Expense
Noninterest expense for the first quarter of 2006 was $325.9 million compared to $284.2 million for the fourth quarter of 2005, and $239.3 million for the first quarter of 2005. The first quarter of 2006 includes pretax merger related expense of $5.7 million compared to $3.1 million for the fourth quarter of 2005. The first quarter of 2006 also includes $3.9 million of compensation expense from the adoption of SFAS 123R. Increases in other individual categories of noninterest expense for the first quarter of 2006 compared to the fourth quarter of 2005 are primarily due to the acquisition of Amegy.
The efficiency ratio for the first quarter of 2006 was 58.3% compared to 57.0% for the fourth quarter of 2005 and 56.6% for the first quarter of 2005. This deterioration in the efficiency ratio reflects higher noninterest expenses, including merger related expenses and amortization of intangibles, both related to the acquisition of Amegy.
Asset Quality
The ratio of nonperforming assets to net loans and leases and other real estate owned was 0.31% at March 31, 2006, compared to 0.30% at December 31, 2005 and 0.33% at March 31, 2005.
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ZIONS BANCORPORATION
Press Release – Page 4
April 20, 2006
Net loan and lease charge-offs were $11.7 million or 0.15% of average loans on an annualized basis for the first quarter of 2006. This compares with $8.2 million or 0.13%, annualized for the fourth quarter of 2005 and $6.6 million or 0.12%, annualized for the first quarter of 2005.
At March 31 2006, the allowance for loan losses as a percentage of net loans and leases was 1.10%, a decrease from 1.12% at December 31, 2005 and 1.19 % at March 31, 2005. The decreased percentages at March 31, 2006 and December 31, 2005 compared to March 31, 2005 were mainly the result of the Amegy acquisition. Amegy’s allowance for loan losses as a percentage of net loans and leases was 0.94% at March 31, 2006 and 0.92% at December 31, 2005. The allowance for loan losses at March 31, 2006 was 476.7% of nonperforming loans. The combined allowances for credit losses (allowance for loan losses plus the allowance for unfunded lending commitments) of $359.1 million were 1.15% of net loans and leases at March 31, 2006.
The combined provisions for loan losses and unfunded lending commitments for the first quarter of 2006 were $14.2 million compared to $10.4 million for the fourth quarter of 2005 and $11.1 million for the first quarter of 2005. The increase was primarily driven by strong loan growth during the quarter.
Capital Management
The Company’s tangible common equity ratio was 5.51% at March 31, 2006, compared to 5.28% at December 31, 2005 and 6.83% at March 31, 2005. Weighted average common and common-equivalent shares outstanding for the first quarter of 2006 were 107,724,724 compared to 96,963,446 for the fourth quarter of 2005 and 91,493,962 for the first quarter of 2005. Common shares outstanding at March 31, 2006 were 106,070,045 compared to 105,147,562 shares at December 31, 2005 and 89,891,146 shares at March 31, 2005. The increases in weighted average common and common-equivalent shares and outstanding common shares resulted mainly from the issuance of 14,351,115 common shares in the Amegy acquisition in December 2005. The increase in outstanding shares during the first quarter of 2006 resulted mainly from the exercise of stock options.
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ZIONS BANCORPORATION
Press Release – Page 5
April 20, 2006
Conference Call
Zions will host a conference call to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 20, 2006). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-866-203-2528 and entering the passcode 28551692, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site atwww.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. ET on Thursday, April 20 through midnight ET on Thursday, April 27, by dialing 1-888-286-8010 and entering the passcode 95924347. 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 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 atwww.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 to successfully execute its business plans and achieve its objectives; changes in general economic and
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ZIONS BANCORPORATION
Press Release – Page 6
April 20, 2006
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.
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 7
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended March 31, | ||||||||
(In thousands, except per share and ratio data) | 2006 | 2005 | % Change | |||||
EARNINGS | ||||||||
Taxable-equivalent net interest | $ | 428,824 | $ | 320,120 | 33.96 % | |||
Taxable-equivalent revenue | 558,755 | 423,116 | 32.06 % | |||||
Net interest income | 422,847 | 314,951 | 34.26 % | |||||
Noninterest income | 129,931 | 102,996 | 26.15 % | |||||
Provision for loan losses | 14,512 | 9,383 | 54.66 % | |||||
Noninterest expense | 325,898 | 239,335 | 36.17 % | |||||
Income before income taxes and | 212,368 | 169,229 | 25.49 % | |||||
Income taxes | 75,258 | 59,749 | 25.96 % | |||||
Minority interest | (523) | (754) | (30.64)% | |||||
Net income | 137,633 | 110,234 | 24.86 % | |||||
PER COMMON SHARE | ||||||||
Net income (diluted) | 1.28 | 1.20 | 6.67 % | |||||
Dividends | 0.36 | 0.36 | – | |||||
Book value | 40.95 | 31.39 | 30.46 % | |||||
SELECTED RATIOS | ||||||||
Return on average assets | 1.31% | 1.40% | ||||||
Return on average common equity | 12.92% | 15.83% | ||||||
Efficiency ratio | 58.33% | 56.56% | ||||||
Net interest margin | 4.69% | 4.53% |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 8
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended March 31, | ||||||||
(In thousands, except share and ratio data) | 2006 | 2005 | % Change | |||||
AVERAGE BALANCES | ||||||||
Total assets | $ 42,646,242 | $ 31,850,979 | 33.89 % | |||||
Securities | 6,073,692 | 5,191,995 | 16.98 % | |||||
Net loans and leases | 30,468,784 | 22,675,601 | 34.37 % | |||||
Goodwill | 1,887,551 | 642,604 | 193.73 % | |||||
Core deposit and other intangibles | 196,551 | 56,653 | 246.94 % | |||||
Total deposits | 32,023,293 | 23,223,512 | 37.89 % | |||||
Core deposits (1) | 29,453,658 | 21,838,213 | 34.87 % | |||||
Minority interest | 28,223 | 24,849 | 13.58 % | |||||
Shareholders’ equity | 4,321,311 | 2,824,874 | 52.97 % | |||||
Weighted average common and | 107,724,724 | 91,493,962 | 17.74 % | |||||
AT PERIOD END | ||||||||
Total assets | $ | 43,318,029 | $ | 31,883,486 | 35.86 % | |||
Securities | 5,984,115 | 4,940,487 | 21.12 % | |||||
Net loans and leases | 31,140,326 | 22,967,269 | 35.59 % | |||||
Sold loans being serviced (2) | 3,183,992 | 2,995,630 | 6.29 % | |||||
Allowance for loan losses | 341,261 | 273,906 | 24.59 % | |||||
Allowance for unfunded lending | 17,841 | 14,353 | 24.30 % | |||||
Goodwill | 1,884,225 | 638,933 | 194.90 % | |||||
Core deposit and other intangibles | 188,384 | 52,007 | 262.23 % | |||||
Total deposits | 32,872,708 | 23,879,088 | 37.66 % | |||||
Core deposits (1) | 30,179,291 | 22,421,174 | 34.60 % | |||||
Minority interest | 28,895 | 26,338 | 9.71 % | |||||
Shareholders’ equity | 4,343,816 | 2,821,766 | 53.94 % | |||||
Common shares outstanding | 106,070,045 | 89,891,146 | 18.00 % | |||||
Average equity to average assets | 10.13% | 8.87% | ||||||
Common dividend payout | 27.71% | 29.55% | ||||||
Tangible common equity ratio | 5.51% | 6.83% | ||||||
Nonperforming assets | 96,556 | 76,089 | 26.90 % | |||||
Accruing loans past due 90 days or | 10,299 | 20,160 | (48.91)% | |||||
Nonperforming assets to net loans | 0.31% | 0.33% |
(1) | Amount consists of total deposits excluding time deposits $100,000 and over. |
(2) | Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans. |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended | ||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||
(In thousands, except per share and ratio data) | 2006 | 2005 | ||||||||
EARNINGS | ||||||||||
Taxable-equivalent net interest income | $ 428,824 | $ 380,316 | $ 345,826 | $ 336,088 | $ 320,120 | |||||
Taxable-equivalent revenue | 558,755 | 498,362 | 457,075 | 442,640 | 423,116 | |||||
Net interest income | 422,847 | 374,819 | 340,652 | 330,928 | 314,951 | |||||
Noninterest income | 129,931 | 118,046 | 111,249 | 106,552 | 102,996 | |||||
Provision for loan losses | 14,512 | 10,116 | 12,107 | 11,417 | 9,383 | |||||
Noninterest expense | 325,898 | 284,208 | 248,472 | 242,666 | 239,335 | |||||
Impairment loss on goodwill | – | 602 | – | – | – | |||||
Income before income taxes and minority | 212,368 | 197,939 | 191,322 | 183,397 | 169,229 | |||||
Income taxes | 75,258 | 69,139 | 68,200 | 66,330 | 59,749 | |||||
Minority interest | (523) | 693 | 152 | (1,743) | (754) | |||||
Net income | 137,633 | 128,107 | 122,970 | 118,810 | 110,234 | |||||
PER COMMON SHARE | ||||||||||
Net income (diluted) | 1.28 | 1.32 | 1.34 | 1.30 | 1.20 | |||||
Dividends | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | |||||
Book value | 40.95 | 40.30 | 33.30 | 32.62 | 31.39 | |||||
SELECTED RATIOS | ||||||||||
Return on average assets | 1.31% | 1.38% | 1.47% | 1.47% | 1.40% | |||||
Return on average common equity | 12.92% | 14.82% | 16.41% | 16.56% | 15.83% | |||||
Efficiency ratio | 58.33% | 57.03% | 54.36% | 54.82% | 56.56% | |||||
Net interest margin | 4.69% | 4.62% | 4.59% | 4.60% | 4.53% |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
(In thousands, except share and ratio data) | 2006 | 2005 | |||||||||||||
AVERAGE BALANCES | |||||||||||||||
Total assets | $ | 42,646,242 | $ | 36,780,719 | $ | 33,218,477 | $ | 32,510,692 | $ | 31,850,979 | |||||
Securities | 6,073,692 | 5,352,093 | 4,993,735 | 5,091,552 | 5,191,995 | ||||||||||
Net loans and leases | 30,468,784 | 25,982,873 | 24,009,024 | 23,330,670 | 22,675,601 | ||||||||||
Goodwill | 1,887,551 | 1,060,381 | 638,957 | 638,932 | 642,604 | ||||||||||
Core deposit and other intangibles | 196,551 | 101,593 | 52,276 | 53,011 | 56,653 | ||||||||||
Total deposits | 32,023,293 | 27,605,309 | 24,807,387 | 23,787,985 | 23,223,512 | ||||||||||
Core deposits (1) | 29,453,658 | 25,467,323 | 23,029,389 | 22,248,291 | 21,838,213 | ||||||||||
Minority interest | 28,223 | 27,079 | 26,220 | 24,726 | 24,849 | ||||||||||
Shareholders’ equity | 4,321,311 | 3,428,605 | 2,972,615 | 2,877,374 | 2,824,874 | ||||||||||
Weighted average common and | 107,724,724 | 96,963,446 | 91,605,279 | 91,610,296 | 91,493,962 | ||||||||||
AT PERIOD END | |||||||||||||||
Total assets | $ | 43,318,029 | $ | 42,779,639 | $ | 33,422,701 | $ | 32,875,294 | $ | 31,883,486 | |||||
Securities | 5,984,115 | 6,057,212 | 4,992,339 | 4,904,799 | 4,940,487 | ||||||||||
Net loans and leases | 31,140,326 | 30,126,936 | 23,930,017 | 23,821,563 | 22,967,269 | ||||||||||
Sold loans being serviced (2) | 3,183,992 | 3,382,603 | 3,561,818 | 2,910,182 | 2,995,630 | ||||||||||
Allowance for loan losses | 341,261 | 338,399 | 287,237 | 281,428 | 273,906 | ||||||||||
Allowance for unfunded lending commitments | 17,841 | 18,120 | 15,830 | 15,395 | 14,353 | ||||||||||
Goodwill | 1,884,225 | 1,887,588 | 639,120 | 638,933 | 638,933 | ||||||||||
Core deposit and other intangibles | 188,384 | 199,166 | 47,670 | 51,397 | 52,007 | ||||||||||
Total deposits | 32,872,708 | 32,642,408 | 25,399,741 | 24,398,535 | 23,879,088 | ||||||||||
Core deposits (1) | 30,179,291 | 30,127,812 | 23,507,531 | 22,840,557 | 22,421,174 | ||||||||||
Minority interest | 28,895 | 27,551 | 26,719 | 24,665 | 26,338 | ||||||||||
Shareholders’ equity | 4,343,816 | 4,237,264 | 2,999,173 | 2,937,908 | 2,821,766 | ||||||||||
Common shares outstanding | 106,070,045 | 105,147,562 | 90,067,016 | 90,062,646 | 89,891,146 | ||||||||||
Average equity to average assets | 10.13% | 9.32% | 8.95% | 8.85% | 8.87% | ||||||||||
Common dividend payout | 27.71% | 25.50% | 26.47% | 27.37% | 29.55% | ||||||||||
Tangible common equity ratio | 5.51% | 5.28% | 7.06% | 6.98% | 6.83% | ||||||||||
Nonperforming assets | 96,556 | 89,063 | 83,101 | 73,680 | 76,089 | ||||||||||
Accruing loans past due 90 days or more | 10,299 | 17,153 | 15,836 | 13,183 | 20,160 | ||||||||||
Nonperforming assets to net loans and leases and | 0.31% | 0.30% | 0.35% | 0.31% | 0.33% |
(1) | Amount consists of total deposits excluding time deposits $100,000 and over. |
(2) | Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans. |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11
CONSOLIDATE BALANCE SHEETS
(In thousands, except share amounts) | March 31, 2006 | December 31, 2005 | September 30, 2005 | June 30, 2005 | March 31, 2005 | ||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 1,584,857 | $ | 1,706,590 | $ | 1,109,202 | $ | 1,232,527 | $ | 1,085,482 | |||||
Money market investments: | |||||||||||||||
Interest-bearing deposits | 51,942 | 22,179 | 13,350 | 11,004 | 16,821 | ||||||||||
Federal funds sold | 178,406 | 414,281 | 460,167 | 52,327 | 35,070 | ||||||||||
Security resell agreements | 238,762 | 230,282 | 528,763 | 537,327 | 548,173 | ||||||||||
Investment securities: | |||||||||||||||
Held to maturity, at cost (approximate market value $633,784, $642,258, $641,737, | 644,212 | 649,791 | 642,687 | 649,888 | 635,774 | ||||||||||
Available for sale, at market | 5,187,979 | 5,305,859 | 3,997,593 | 3,972,829 | 4,001,244 | ||||||||||
Trading account, at market (includes $34,340, $43,444, $141,535, $102,916 and $114,302 transferred as collateral under repurchase agreements) | 151,924 | 101,562 | 352,059 | 282,082 | 303,469 | ||||||||||
5,984,115 | 6,057,212 | 4,992,339 | 4,904,799 | 4,940,487 | |||||||||||
Loans: | |||||||||||||||
Loans held for sale | 311,655 | 256,236 | 213,223 | 207,123 | 196,994 | ||||||||||
Loans and leases | 30,958,190 | 29,996,022 | 23,823,715 | 23,718,150 | 22,872,786 | ||||||||||
31,269,845 | 30,252,258 | 24,036,938 | 23,925,273 | 23,069,780 | |||||||||||
Less: | |||||||||||||||
Unearned income and fees, net of related | 129,519 | 125,322 | 106,921 | 103,710 | 102,511 | ||||||||||
Allowance for loan losses | 341,261 | 338,399 | 287,237 | 281,428 | 273,906 | ||||||||||
Loans and leases, net of allowance | 30,799,065 | 29,788,537 | 23,642,780 | 23,540,135 | 22,693,363 | ||||||||||
Other noninterest-bearing investments | 971,569 | 938,515 | 708,368 | 698,968 | 690,922 | ||||||||||
Premises and equipment, net | 565,327 | 564,745 | 410,800 | 409,488 | 407,262 | ||||||||||
Goodwill | 1,884,225 | 1,887,588 | 639,120 | 638,933 | 638,933 | ||||||||||
Core deposit and other intangibles | 188,384 | 199,166 | 47,670 | 51,397 | 52,007 | ||||||||||
Other real estate owned | 24,964 | 19,966 | 15,176 | 11,070 | 10,266 | ||||||||||
Other assets | 846,413 | 950,578 | 854,966 | 787,319 | 764,700 | ||||||||||
$ | 43,318,029 | $ | 42,779,639 | $ | 33,422,701 | $ | 32,875,294 | $ | 31,883,486 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing demand | $ | 9,953,003 | $ | 9,953,833 | $ | 7,725,179 | $ | 7,577,450 | $ | 7,189,420 | |||||
Interest-bearing: | |||||||||||||||
Savings and money market | 16,354,901 | 16,055,754 | 13,442,012 | 13,195,200 | 13,312,525 | ||||||||||
Time under $100,000 | 1,959,351 | 1,938,789 | 1,554,064 | 1,468,017 | 1,422,582 | ||||||||||
Time $100,000 and over | 2,693,417 | 2,514,596 | 1,892,210 | 1,557,978 | 1,457,914 | ||||||||||
Foreign | 1,912,036 | 2,179,436 | 786,276 | 599,890 | 496,647 | ||||||||||
32,872,708 | 32,642,408 | 25,399,741 | 24,398,535 | 23,879,088 | |||||||||||
Securities sold, not yet purchased | 55,577 | 64,654 | 331,891 | 291,353 | 297,591 | ||||||||||
Federal funds purchased | 1,484,049 | 1,255,662 | 1,262,646 | 1,593,010 | 1,314,927 | ||||||||||
Security repurchase agreements | 1,096,420 | 1,027,658 | 756,631 | 755,676 | 714,154 | ||||||||||
Other liabilities | 677,495 | 592,599 | 571,583 | 544,691 | 624,593 | ||||||||||
Commercial paper | 153,286 | 167,188 | 149,089 | 75,393 | 142,190 | ||||||||||
Federal Home Loan Bank advances and other | |||||||||||||||
One year or less | 4,264 | 18,801 | 13,063 | 314,643 | 161,270 | ||||||||||
Over one year | 134,043 | 234,488 | 226,482 | 227,039 | 227,595 | ||||||||||
Long-term debt | 2,467,476 | 2,511,366 | 1,685,683 | 1,712,381 | 1,673,974 | ||||||||||
Total liabilities | 38,945,318 | 38,514,824 | 30,396,809 | 29,912,721 | 29,035,382 | ||||||||||
Minority interest | 28,895 | 27,551 | 26,719 | 24,665 | 26,338 | ||||||||||
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 106,070,045, 105,147,562, 90,067,016, 90,062,646 and 89,891,146 shares | 2,227,914 | 2,156,732 | 971,002 | 961,510 | 969,739 | ||||||||||
Retained earnings | 2,279,383 | 2,179,885 | 2,084,439 | 1,994,015 | 1,907,727 | ||||||||||
Accumulated other comprehensive loss | (123,099) | (83,043) | (52,088) | (12,905) | (50,724) | ||||||||||
Deferred compensation | (40,382) | (16,310) | (4,180) | (4,712) | (4,976) | ||||||||||
Total shareholders’ equity | 4,343,816 | 4,237,264 | 2,999,173 | 2,937,908 | 2,821,766 | ||||||||||
$ | 43,318,029 | $ | 42,779,639 | $ | 33,422,701 | $ | 32,875,294 | $ | 31,883,486 | ||||||
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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) | March 31, 2006 | December 31, 2005 | September 30, 2005 | June 30, 2005 | March 31, 2005 | ||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 542,784 | $ | 458,429 | $ | 406,319 | $ | 380,233 | $ | 350,935 | |||||
Interest on loans held for sale | 4,046 | 3,131 | 2,462 | 2,618 | 1,603 | ||||||||||
Lease financing | 4,130 | 4,010 | 3,980 | 4,023 | 4,066 | ||||||||||
Interest on money market investments | 5,847 | 13,280 | 7,723 | 6,041 | 4,638 | ||||||||||
Interest on securities: | |||||||||||||||
Held to maturity – taxable | 2,215 | 1,866 | 1,827 | 1,833 | 1,805 | ||||||||||
Held to maturity – nontaxable | 5,531 | 5,948 | 6,066 | 6,008 | 5,983 | ||||||||||
Available for sale – taxable | 69,104 | 56,267 | 49,339 | 49,102 | 46,920 | ||||||||||
Available for sale – nontaxable | 2,339 | 1,433 | 808 | 834 | 856 | ||||||||||
Trading account | 2,074 | 4,038 | 4,753 | 5,044 | 6,035 | ||||||||||
Total interest income | 638,070 | 548,402 | 483,277 | 455,736 | 422,841 | ||||||||||
Interest expense: | |||||||||||||||
Interest on savings and money market deposits | 86,623 | 71,093 | 59,539 | 49,236 | 40,736 | ||||||||||
Interest on time and foreign deposits | 59,485 | 43,740 | 31,536 | 24,557 | 19,887 | ||||||||||
Interest on short-term borrowings | 27,978 | 24,155 | 23,213 | 24,152 | 20,629 | ||||||||||
Interest on long-term debt | 41,137 | 34,595 | 28,337 | 26,863 | 26,638 | ||||||||||
Total interest expense | 215,223 | 173,583 | 142,625 | 124,808 | 107,890 | ||||||||||
Net interest income | 422,847 | 374,819 | 340,652 | 330,928 | 314,951 | ||||||||||
Provision for loan losses | 14,512 | 10,116 | 12,107 | 11,417 | 9,383 | ||||||||||
Net interest income after provision for loan losses | 408,335 | 364,703 | 328,545 | 319,511 | 305,568 | ||||||||||
Noninterest income: | |||||||||||||||
Service charges and fees on deposit accounts | 40,038 | 34,375 | 32,233 | 31,406 | 30,782 | ||||||||||
Loan sales and servicing income | 15,468 | 21,315 | 21,649 | 16,790 | 18,068 | ||||||||||
Other service charges, commissions and fees | 40,271 | 33,178 | 28,983 | 28,205 | 26,715 | ||||||||||
Trust and investment management income | 4,356 | 4,284 | 3,817 | 4,531 | 3,405 | ||||||||||
Income from securities conduit | 8,406 | 8,977 | 8,553 | 8,617 | 8,819 | ||||||||||
Dividends and other investment income | 9,209 | 7,642 | 6,954 | 7,436 | 8,008 | ||||||||||
Market making, trading and nonhedge derivative income | 4,425 | 1,352 | 4,069 | 6,509 | 3,784 | ||||||||||
Equity securities gains (losses), net | 550 | 1,764 | 1,089 | (2,778) | (1,387) | ||||||||||
Fixed income securities gains (losses), net | 251 | 423 | 276 | (1,187) | 1,333 | ||||||||||
Other | 6,957 | 4,736 | 3,626 | 7,023 | 3,469 | ||||||||||
Total noninterest income | 129,931 | 118,046 | 111,249 | 106,552 | 102,996 | ||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 186,053 | 154,942 | 142,590 | 138,244 | 138,126 | ||||||||||
Occupancy, net | 24,092 | 21,388 | 19,048 | 18,504 | 18,453 | ||||||||||
Furniture and equipment | 23,119 | 19,032 | 16,979 | 16,260 | 15,919 | ||||||||||
Legal and professional services | 8,918 | 10,012 | 8,575 | 7,967 | 8,250 | ||||||||||
Postage and supplies | 8,116 | 7,043 | 6,510 | 6,798 | 6,488 | ||||||||||
Advertising | 6,146 | 6,061 | 5,875 | 5,335 | 4,093 | ||||||||||
Impairment losses on long-lived assets | 1,304 | 2,500 | – | – | 633 | ||||||||||
Restructuring charges | 17 | 2,351 | – | – | 92 | ||||||||||
Merger related expense | 5,723 | 3,103 | 207 | – | – | ||||||||||
Amortization of core deposit and other intangibles | 10,693 | 6,092 | 3,684 | 3,696 | 3,433 | ||||||||||
Provision for unfunded lending commitments | (279) | 277 | 435 | 1,042 | 1,671 | ||||||||||
Other | 51,996 | 51,407 | 44,569 | 44,820 | 42,177 | ||||||||||
Total noninterest expense | 325,898 | 284,208 | 248,472 | 242,666 | 239,335 | ||||||||||
Impairment loss on goodwill | – | 602 | – | – | – | ||||||||||
Income before income taxes and minority interest | 212,368 | 197,939 | 191,322 | 183,397 | 169,229 | ||||||||||
Income taxes | 75,258 | 69,139 | 68,200 | 66,330 | 59,749 | ||||||||||
Minority interest | (523) | 693 | 152 | (1,743) | (754) | ||||||||||
Net income | $ | 137,633 | $ | 128,107 | $ | 122,970 | $ | 118,810 | $ | 110,234 | |||||
Weighted average shares outstanding during the period: | |||||||||||||||
Basic shares | 105,472 | 95,002 | 89,980 | 89,846 | 89,877 | ||||||||||
Diluted shares | 107,725 | 96,963 | 91,605 | 91,610 | 91,494 | ||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | 1.30 | $ | 1.35 | $ | 1.37 | $ | 1.32 | $ | 1.23 | |||||
Diluted | 1.28 | 1.32 | 1.34 | 1.30 | 1.20 |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands)
| Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Deferred Compensation | Total Shareholders’ 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 | 137,633 | 137,633 | |||||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||
Net realized and unrealized holding losses on investments and retained interests | (19,962) | ||||||||||||||
Foreign currency translation | 64 | ||||||||||||||
Reclassification for net realized gains | (28) | ||||||||||||||
Net unrealized losses on derivative | (20,130) | ||||||||||||||
Other comprehensive loss | (40,056) | (40,056) | |||||||||||||
Total comprehensive income | 97,577 | ||||||||||||||
Stock redeemed and retired | (28) | (28) | |||||||||||||
Fair value of nonvested stock options, adoption of SFAS 123R | 21,307 | (21,307) | – | ||||||||||||
Restricted stock issued and net stock options exercised | 49,903 | 49,903 | |||||||||||||
Cash dividends – common, $.36 per share | (38,135) | (38,135) | |||||||||||||
Change in deferred compensation | (2,765) | (2,765) | |||||||||||||
Balance, March 31, 2006 | $ | 2,227,914 | $ | 2,279,383 | $ | (123,099) | $ | (40,382) | $ | 4,343,816 | |||||
Balance, December 31, 2004 | $ | 972,065 | $ | 1,830,064 | $ | (7,932) | $ | (4,218) | $ | 2,789,979 | |||||
Comprehensive income: | |||||||||||||||
Net income for the period | 110,234 | 110,234 | |||||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||
Net realized and unrealized holding losses on investments and retained interests | (10,557) | ||||||||||||||
Foreign currency translation | (413) | ||||||||||||||
Reclassification for net realized gains | (885) | ||||||||||||||
Net unrealized losses on derivative | (30,937) | ||||||||||||||
Other comprehensive loss | (42,792) | (42,792) | |||||||||||||
Total comprehensive income | 67,442 | ||||||||||||||
Stock redeemed and retired | (30,070) | (30,070) | |||||||||||||
Net stock options exercised | 27,744 | 27,744 | |||||||||||||
Cash dividends – common, $.36 per share | (32,571) | (32,571) | |||||||||||||
Change in deferred compensation | (758) | (758) | |||||||||||||
Balance, March 31, 2005 | $ | 969,739 | $ | 1,907,727 | $ | (50,724) | $ | (4,976) | $ | 2,821,766 | |||||
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14
Nonperforming Assets
(Unaudited)
(In thousands) | March 31, 2006 | December 31, 2005 | September 30, 2005 | June 30, 2005 | March 31, 2005 | ||||||||||
Nonaccrual loans | $ | 71,376 | $ | 68,717 | $ | 67,248 | $ | 61,871 | $ | 65,199 | |||||
Restructured loans | 216 | 380 | 677 | 739 | 624 | ||||||||||
Other real estate owned | 24,964 | 19,966 | 15,176 | 11,070 | 10,266 | ||||||||||
Total | $ | 96,556 | $ | 89,063 | $ | 83,101 | $ | 73,680 | $ | 76,089 | |||||
% of net loans and leases* and other real estate | 0.31% | 0.30% | 0.35% | 0.31% | 0.33% | ||||||||||
Accruing loans past due 90 days or more | $ | 10,299 | $ | 17,153 | $ | 15,836 | $ | 13,183 | $ | 20,160 | |||||
% of net loans and leases* | 0.03% | 0.06% | 0.07% | 0.06% | 0.09% | ||||||||||
*Includes loans held for sale. | |||||||||||||||
Allowances for Credit Losses | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
(In thousands) | March 31, 2006 | December 31, 2005 | September 30, 2005 | June 30, 2005 | March 31, 2005 | ||||||||||
Allowance for Loan Losses | |||||||||||||||
Balance at beginning of period | $ | 338,399 | $ | 287,237 | $ | 281,428 | $ | 273,906 | $ | 271,117 | |||||
Allowance of company acquired | – | 49,217 | – | – | – | ||||||||||
Add: | |||||||||||||||
Provision for losses | 14,512 | 10,116 | 12,107 | 11,417 | 9,383 | ||||||||||
Deduct: | |||||||||||||||
Loan and lease charge-offs | (15,609) | (12,168) | (10,883) | (8,633) | (11,085) | ||||||||||
Recoveries | 3,959 | 3,997 | 4,585 | 4,738 | 4,491 | ||||||||||
Net loan and lease charge-offs | (11,650) | (8,171) | (6,298) | (3,895) | (6,594) | ||||||||||
Balance at end of period | $ | 341,261 | $ | 338,399 | $ | 287,237 | $ | 281,428 | $ | 273,906 | |||||
Ratio of allowance for loan losses to net loans and | 1.10% | 1.12% | 1.20% | 1.18% | 1.19% | ||||||||||
Ratio of allowance for loan losses to nonperforming | 476.67% | 489.74% | 422.87% | 449.49% | 416.13% | ||||||||||
Allowance for Unfunded Lending Commitments | |||||||||||||||
Balance at beginning of period | $ | 18,120 | $ | 15,830 | $ | 15,395 | $ | 14,353 | $ | 12,682 | |||||
Allowance of company acquired | – | 2,013 | – | – | – | ||||||||||
Provision charged (credited) against earnings | (279) | 277 | 435 | 1,042 | 1,671 | ||||||||||
Balance at end of period | $ | 17,841 | $ | 18,120 | $ | 15,830 | $ | 15,395 | $ | 14,353 | |||||
Total Allowances for Credit Losses | |||||||||||||||
Allowance for loan losses | $ | 341,261 | $ | 338,399 | $ | 287,237 | $ | 281,428 | $ | 273,906 | |||||
Allowance for unfunded lending commitments | 17,841 | 18,120 | 15,830 | 15,395 | 14,353 | ||||||||||
Total allowances for credit losses | $ | 359,102 | $ | 356,519 | $ | 303,067 | $ | 296,823 | $ | 288,259 | |||||
Ratio of total allowances for credit losses to net loans | 1.15% | 1.18% | 1.27% | 1.25% | 1.26% |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
Sold Loans Being Serviced (Unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
(In thousands) | March 31, 2006 | December 31, 2005 | September 30, 2005 | June 30, 2005 | March 31, 2005 | ||||||||||
Balance at beginning of period | $ | 3,382,603 | $ | 3,561,818 | $ | 2,910,182 | $ | 2,995,630 | $ | 3,065,909 | |||||
New loans sold | 59,417 | 100,273 | 880,808 | 120,091 | 98,772 | ||||||||||
Payments and other reductions | (258,028) | (279,488) | (229,172) | (205,539) | (169,051) | ||||||||||
Balance at end of period | $ | 3,183,992 | $ | 3,382,603 | $ | 3,561,818 | $ | 2,910,182 | $ | 2,995,630 | |||||
Loan Balances By Portfolio Type (Unaudited) | |||||||||||||||
(In millions) | March 31, 2006 | December 31, 2005 | September 30, 2005 | June 30, 2005 | March 31, 2005 | ||||||||||
Loans held for sale | $ | 312 | $ | 256 | $ | 213 | $ | 207 | $ | 197 | |||||
Commercial lending: | |||||||||||||||
Commercial and industrial | 7,261 | 7,192 | 4,885 | 4,760 | 4,604 | ||||||||||
Leasing | 383 | 373 | 359 | 361 | 359 | ||||||||||
Owner occupied | 5,159 | 4,825 | 4,063 | 4,341 | 4,036 | ||||||||||
Total commercial lending | 12,803 | 12,390 | 9,307 | 9,462 | 8,999 | ||||||||||
Commercial real estate: | |||||||||||||||
Construction and land development (1) | 6,292 | 6,065 | 4,471 | 4,091 | 3,792 | ||||||||||
Term | 4,847 | 4,640 | 4,051 | 4,118 | 4,032 | ||||||||||
Total commercial real estate | 11,139 | 10,705 | 8,522 | 8,209 | 7,824 | ||||||||||
Consumer: | |||||||||||||||
Home equity credit line and other | 1,892 | 1,831 | 1,659 | 1,709 | 1,621 | ||||||||||
1-4 family residential (1) | 4,191 | 4,130 | 3,574 | 3,564 | 3,620 | ||||||||||
Bankcard and other revolving plans | 254 | 207 | 195 | 208 | 211 | ||||||||||
Other | 464 | 537 | 437 | 468 | 490 | ||||||||||
Total consumer | 6,801 | 6,705 | 5,865 | 5,949 | 5,942 | ||||||||||
Foreign loans | 3 | 5 | 5 | 5 | 5 | ||||||||||
Other receivables | 212 | 191 | 125 | 93 | 103 | ||||||||||
Total loans | $ | 31,270 | $ | 30,252 | $ | 24,037 | $ | 23,925 | $ | 23,070 | |||||
(1) | Certain balances at the end of periods previous to March 31, 2006 have been reclassified between construction and land development, home equity credit line and other consumer real estate, and 1-4 family residential to conform with the current presentation. |
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
Three Months Ended March 31, 2006 | Three Months Ended March 31, 2005 | |||||||||||||||
(In thousands) | Average Balance | Amount of Interest (1) | Average Rate | Average Balance | Amount of Interest (1) | Average Rate | ||||||||||
ASSETS | ||||||||||||||||
Money market investments | $ | 511,719 | $ | 5,847 | 4.63% | $ | 816,141 | $ | 4,638 | 2.30% | ||||||
Securities: | ||||||||||||||||
Held to maturity | 632,108 | 10,724 | 6.88% | 637,316 | 11,010 | 7.01% | ||||||||||
Available for sale | 5,272,575 | 72,702 | 5.59% | 3,950,159 | 48,237 | 4.95% | ||||||||||
Trading account | 169,009 | 2,074 | 4.98% | 604,520 | 6,035 | 4.05% | ||||||||||
Total securities | 6,073,692 | 85,500 | 5.71% | 5,191,995 | 65,282 | 5.10% | ||||||||||
Loans: | ||||||||||||||||
Loans held for sale | 272,628 | 4,046 | 6.02% | 185,549 | 1,603 | 3.50% | ||||||||||
Net loans and leases (2) | 30,196,156 | 548,654 | 7.37% | 22,490,052 | 356,487 | 6.43% | ||||||||||
Total loans and leases | 30,468,784 | 552,700 | 7.36% | 22,675,601 | 358,090 | 6.40% | ||||||||||
Total interest-earning assets | 37,054,195 | 644,047 | 7.05% | 28,683,737 | 428,010 | 6.05% | ||||||||||
Cash and due from banks | 1,538,376 | 1,018,123 | ||||||||||||||
Allowance for loan losses | (340,754) | (273,317) | ||||||||||||||
Goodwill | 1,887,551 | 642,604 | ||||||||||||||
Core deposit and other intangibles | 196,551 | 56,653 | ||||||||||||||
Other assets | 2,310,323 | 1,723,179 | ||||||||||||||
Total assets | $ | 42,646,242 | $ | 31,850,979 | ||||||||||||
LIABILITIES | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||
Savings and NOW | $ | 4,651,160 | 13,185 | 1.15% | $ | 4,298,664 | 7,547 | 0.71% | ||||||||
Money market | 11,363,810 | 73,438 | 2.62% | 8,909,948 | 33,189 | 1.51% | ||||||||||
Time under $100,000 | 1,956,509 | 15,862 | 3.29% | 1,415,888 | 8,037 | 2.30% | ||||||||||
Time $100,000 and over | 2,569,635 | 23,322 | 3.68% | 1,385,299 | 9,298 | 2.72% | ||||||||||
Foreign | 1,979,293 | 20,301 | 4.16% | 449,002 | 2,552 | 2.31% | ||||||||||
Total interest-bearing deposits | 22,520,407 | 146,108 | 2.63% | 16,458,801 | 60,623 | 1.49% | ||||||||||
Borrowed funds: | ||||||||||||||||
Securities sold, not yet purchased | 57,330 | 631 | 4.46% | 507,917 | 4,510 | 3.60% | ||||||||||
Federal funds purchased and security | 2,673,550 | 25,166 | 3.82% | 2,413,062 | 13,152 | 2.21% | ||||||||||
Commercial paper | 181,334 | 2,082 | 4.66% | 145,083 | 931 | 2.60% | ||||||||||
FHLB advances and other borrowings: | ||||||||||||||||
One year or less | 9,868 | 99 | 4.07% | 325,708 | 2,036 | 2.54% | ||||||||||
Over one year | 194,234 | 2,525 | 5.27% | 227,865 | 2,839 | 5.05% | ||||||||||
Long-term debt | 2,503,348 | 38,612 | 6.26% | 1,690,725 | 23,799 | 5.71% | ||||||||||
Total borrowed funds | 5,619,664 | 69,115 | 4.99% | 5,310,360 | 47,267 | 3.61% | ||||||||||
Total interest-bearing liabilities | 28,140,071 | 215,223 | 3.10% | 21,769,161 | 107,890 | 2.01% | ||||||||||
Noninterest-bearing deposits | 9,502,886 | 6,764,711 | ||||||||||||||
Other liabilities | 653,751 | 467,384 | ||||||||||||||
Total liabilities | 38,296,708 | 29,001,256 | ||||||||||||||
Minority interest | 28,223 | 24,849 | ||||||||||||||
Total shareholders’ equity | 4,321,311 | 2,824,874 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 42,646,242 | $ | 31,850,979 | ||||||||||||
Spread on average interest-bearing funds | 3.95% | 4.04% | ||||||||||||||
Taxable-equivalent net interest income and net yield on interest-earning assets | $ | 428,824 | 4.69% | $ | 320,120 | 4.53% | ||||||||||
(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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