EXHIBIT 99.2
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
----------------------------------
ANNUAL REPORT
Pursuant to Section 15(d) Of The
Securities Exchange Act of 1934
For the Year Ended December 31, 1998
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
ZIONS BANCORPORATION
One South Main, Suite 1380
Salt Lake City, Utah 84111
1
Item 1. Changes in the Plan
The Plan was completely amended and restated as of
October 1, 1992, with certain provisions retroactively effective as of January
1, 1989. In 1994, the Plan was amended for the purpose of maintaining its
qualification under Internal Revenue Code pursuant to the Tax Reform Act of 1986
and, in order to conform the Plan to the requirements of the Unemployment
Compensation Act of 1992 and the Omnibus Budget Reconciliation Act of 1993 and
to facilitate the merger of the National Bank of Arizona Savings and Retirement
Plan and the Rio Salado Bancorp. Inc. Retirement Plan into the Plan. No changes
were made in the Plan during the year 1998.
Item 2. Changes in Investment Policy
During 1997 the Plan increased the number of investment fund types it maintains
from four to nine. The separate types of investment funds maintained by the Plan
are as follows: (i) company securities, which consists of Company stock and
short-term investments pending the acquisition of Company securities; (ii)
Accessor Growth Portfolio, which seeks capital growth by investing primarily in
companies and industries from the 500 U.S. issuers with the largest market
capitalization and well-established records of growth in profits and earnings;
(iii) Accessor Value and Income Portfolio, which seeks a high level of current
income and capital growth by investing primarily in companies and industries
from the 500 U.S. issuers with the largest market capitalization and attractive
valuation levels; (iv) Accessor Small to Mid Cap Portfolio which seeks capital
growth by investing primarily in equity securities of small-to-medium sized
companies with high growth potential; (v) Accessor International Equity
Portfolio which seeks the growth of capital by investing primarily in equity
securities of companies domiciled in countries other than the United States;
(vi) Accessor Intermediate Fixed-Income Portfolio which seeks the generation of
current income by investing in fixed-income securities; (vii) Accessor
Short-Intermediate Fixed-Income Portfolio which seeks preservation of capital
and generation of current income by investing primarily in fixed-income
securities, including government bonds, corporate bonds and mortgage-backed
securities, (viii) Accessor Mortgage Securities Portfolio which seeks a high
level of current income by investing in mortgage-related securities; and (ix)
U.S. Government Money Portfolio which seeks maximum current income consistent
with the preservation of principal and liquidity, investing primarily in
short-term obligations issued by or guaranteed by the U.S. Government, its
agencies or instrumentalities. No changes in investment policy were made during
the year 1998.
Item 3. Contributions under the Plan
The Company's contributions are measured by reference to employee contributions
and are not discretionary.
Item 4. Participating Employees
There were 3,893 participating employees in the Plan on December 31, 1998.
2
Item 5. Administration of the Plan
(a) Zions Bancorporation is the Plan administrator. The Company's Board of
Directors has appointed an Administrative Committee consisting of six
persons. The Committee has full power and authority to administer the
Plan and to interpret its provisions.
The present members of the Committee and their positions held are:
Member Position - Company
- --------------------------- --------------------------------------------------
Clark B. Hinckley, Chairman Senior Vice President of Zions Bancorporation
Harris H. Simmons President and Chief Executive Officer of Zions
Bancorporation
Dale M. Gibbons Executive Vice President of Zions Bancorporation
W. David Hemingway Executive Vice President of Zions Bancorporation
Richard G. Crandall Vice President of Zions First National Bank
Russell W. Miller President of Zions Insurance Agency, Inc.
The address of each fiduciary listed above is One South Main, Suite 1380,
Salt Lake City, Utah 84111.
(b) No compensation is paid to the Committee members by the Plan. All
expenses of the Plan and its administration are paid by the Company.
ITEM 6. CUSTODIAN OF INVESTMENTS
(a) Zions First National Bank, One South Main Street, Salt Lake City, Utah 84111
is the custodian and trustee.
(b) The custodian and trustee receives no compensation from the Plan.
Item 7. Reports to Participating Employees
Participating employees are furnished an annual statement reflecting the status
of their accounts as of the end of the fiscal year.
Item 8. Investment of Funds
As elected by participants, approximately seventy seven percent of the assets of
the Plan are invested in securities of the Company, and approximately twenty
percent in Accessor Funds.
3
Item 9. Financial Statements and Exhibits
(a) Financial Statements Page
----
Independent Auditors' Report .............................................. 31
Statements of Net Assets Available for Benefits -
December 31, 1998 and 1997 ............................................ 32
Statements of Changes in Net Assets Available for Benefits -
Years ended December 31, 1998, 1997, and 1996 ........................ 33
Notes to Financial Statements .............................................. 34
Schedules - Schedules I, II, and III have been omitted for the reasons
that they are not required or are not applicable, or the required
information is shown in the financial statements or notes thereto.
(b) Exhibits - None
4
Independent Auditors' Report
The Trust Committee
Zions Bancorporation
Employee Investment Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of Zions Bancorporation Employee Investment Savings Plan as of December 31, 1998
and 1997, and the related statements of changes in net assets available for
benefits for each of the years in the three-year period ended December 31, 1998.
These financial statements are the responsibility of the plan administrator. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
plan administrator, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of Zions
Bancorporation Employee Investment Savings Plan as of December 31, 1998 and
1997, and the changes in net assets available for benefits for each of the years
in the three-year period ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and reportable transactions for the year ended December
31, 1998, are presented for the purpose of additional analysis and are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audit of the basic 1998 financial statements and, in our opinion,
are fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/KPMG LLP
March 16, 1999
5
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 1998 and 1997
1998 1997
------------ ------------
Assets:
Cash and cash equivalents ........................................ $ 28,747 136,111
Investments, at fair value:
Zions Bancorporation common stock (approximate cost
of $21,778,604 in 1998 and $17,287,725 in 1997) ... 111,008,195 83,746,551
Accessor funds (approximate cost of $25,648,054 in 1998
and $19,168,929 in 1997) .......................... 28,257,934 19,380,190
Fidelity U.S. government reserves (approximate cost of
$2,802,271 in 1998 and $2,406,968 in 1997) ........ 2,802,271 2,406,968
Employee loans ............................................. 1,469,143 1,581,233
------------ -----------
143,537,543 107,114,942
Contributions receivable:
Employee ................................................... 270,707 35,855
Employer ................................................... 56,060 6,737
Dividends receivable ............................................. 249,399 221,478
Interest receivable .............................................. 1,319 3,227
Wires receivable ................................................. -- 10,679
------------ -----------
Total assets ................................................ 144,143,775 107,529,029
------------ -----------
Liabilities - accounts payable ...................................... -- 40,483
------------ -----------
Net assets available for benefits ................................... $144,143,775 107,488,546
============ ===========
See accompanying notes to financial statements.
6
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 1998, 1997 and 1996
1998 1997 1996
------------ ------------ ------------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments ... $ 34,672,299 36,818,202 12,105,270
Dividends ....................................... 1,402,606 3,053,076 732,045
Interest ........................................ 156,435 279,067 361,768
------------ ----------- ----------
36,231,340 40,150,345 13,199,083
------------ ----------- ----------
Contributions:
Employee ........................................ 4,893,777 2,715,037 2,049,269
Employer ........................................ 991,783 543,577 430,015
Plan rollovers:
Nonaffiliated plans .................... 3,248,154 4,132,145 342,799
Affiliated plan ........................ -- -- 183,050
------------ ----------- ----------
9,133,714 7,390,759 3,005,133
------------ ----------- ----------
45,365,054 47,541,104 16,204,216
------------ ----------- ----------
Total additions
Deductions from net assets -
benefits paid directly to participants ................ 8,709,825 4,550,690 3,337,348
------------ ----------- ----------
36,644,229 42,990,414 12,866,868
Net increase
Net assets available for benefits:
Beginning of year ..................................... 107,488,546 64,498,132 51,631,264
------------ ----------- ----------
End of year ........................................... $144,143,775 107,488,546 64,498,132
============ =========== ==========
See accompanying notes to financial statements.
7
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) Plan Description
The following description of the Zions Bancorporation Employee Investment
Savings Plan (the Plan) provides only general information. Participants
should refer to the Plan agreement for a more complete description of the
Plan's provisions.
(a) General
The Plan is a single employer contributory plan that is designed
to provide retirement benefits for eligible employees under a
pretax salary reduction (deferral) arrangement and, if employees
so elect, an opportunity to acquire stock ownership in Zions
Bancorporation (the Company). The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974.
(b) Eligibility
Participation in the Plan is voluntary. An employee is eligible to
become a participant on January 1 or July 1, whichever coincides
with, or immediately follows, the latter of the date on which the
employee completes at least 1,000 hours of service during 12
continuous months and attains the age of 21. At December 31, 1998
and 1997, there were 3,893 and 3,240 participants, respectively,
in the Plan.
(c) Employee and Company Contributions
Participants may elect to contribute one to fifteen percent of
their compensation to the Employee Investment Savings Plan,
limited by participant contributions made to the Zions
Bancorporation Employee Stock Savings Plan. The Company
contributes an amount equal to 25 percent of the contribution made
by each participant up to ten percent of their compensation with
no match made on contributions in excess thereof. The maximum
amount a participant may contribute to the Plan in a calendar year
is the lesser of fifteen percent of their compensation, or $10,000
for 1998.
(d) Allocation of Income or Loss
Investment income is allocated to each participant's account in
proportion to the investment shares held in that participant's
account to the total investment shares held in the Plan.
(e) Vesting and Payment of Benefits
Employee contributions and the employees' share of the Company
contributions are 100 percent vested at all times. Benefits are
paid upon death, disability, retirement, or earlier, subject to
certain restrictions. Benefits are paid in shares of stock and/or
cash pursuant to the nature of the investment vehicle selected by
the participant.
(continued)
8
(f) Investment Options
As of December 31, 1998, the Plan maintains three separate types
of investment funds: (i) Company securities, which consist of
Company stock; (ii) Accessor funds, consisting of seven investment
options (Accessor growth fund adv class, Accessor value and income
adv class, Accessor small to mid-cap adv class, Accessor
international equity adv class, Accessor intermediate fixed income
adv class, Accessor mortgage securities adv class, Accessor
short-term intermediate fixed income adv class); and (iii)
Fidelity U.S. government reserves.
(g) Participant Loans
Beginning October 1, 1992, a participant who is an active employee
may apply for and obtain a loan of up to 50 percent of the
eligible amounts in their account. Loans are secured by the
participant's account. Loan repayment is made through payroll
deduction.
(h) Plan Termination
Although the Company has not expressed any intent to do so, it has
the right under the Plan to discontinue contributions at any time
and to terminate the Plan subject to provisions of ERISA.
(2) Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by
the Plan in the preparation of its financial statements:
(a) Basis of Presentation
The Plan's financial statements are presented on the accrual basis
of accounting.
(b) Investments
Quoted market prices have been used to determine the fair value of
investments. Purchases and sales of investments are recorded on a
settlement-date basis, which does not materially differ from using
the trade-date basis required by generally accepted accounting
principles.
Net unrealized appreciation represents the difference between the
book value and the market value of investments held at year-end.
Book value is the market value at the end of the previous fiscal
year, or cost if the investment was purchased during the year.
9
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
The following investments represent five percent or more of the
net assets available for plan benefits at December 31:
1998 1997
------------ ------------
Zions Bancorporation common stock $111,008,195 83,746,551
Accessor growth fund adv class 8,495,197 --
(c) Cost of Administration
All costs of administration are currently being absorbed by the
Company.
(d) Cash and Cash Equivalents
Cash and cash equivalents include cash and short-term investments
with maturity dates of 90 days or less.
(e) Reclassifications
Certain reclassifications have been made in the 1997 financial
statements to conform with the 1998 presentation.
(f) Use of Estimates
The preparation of the financial statements and supplemental
schedules in conformity with generally accepted accounting
principles requires the plan administrator to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and supplemental schedules
and the reported amounts of changes in net assets during the
reporting period. Actual results could differ from those
estimates.
(3) Tax Status
The Plan obtained its latest determination letter on June 5, 1996, in
which the Internal Revenue Service stated that the Plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code (IRC). The Plan has been amended since receiving
the determination letter. However, the plan administrator and the Plan's
tax counsel believe that the Plan is designed and is currently being
operated in compliance with the applicable requirements of the IRC.
(4) Zions Bancorporation Common Stock
At December 31, 1998 and 1997, the investment in common stock of the
Company consisted of 1,779,691 and 1,845,654 shares, respectively.
10
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(5) Financial Information by Fund Type
Financial information by fund type as of December 31, 1998 and 1997, and
for each of the years in the three-year period ended December 31, 1998,
are as follows:
Statement of Net Assets Available for Benefits by Fund Type
Year ended December 31, 1998
Zions Fidelity
Bancorp- U.S.
oration govern-
common Accessor ment Employee
stock funds* reserves loans Other Total
------------ ------------ ------------ ------------ ------------ ------------
Assets:
Cash and cash equivalents ........ -- -- -- -- 28,747 28,747
Investments, at fair value:
Zions Bancorporation common .... $111,008,195 -- -- -- -- 111,008,195
stock
Accessor funds ................. -- 28,257,934 -- -- -- 28,257,934
Fidelity U.S. government ....... -- -- 2,802,271 -- -- 2,802,271
reserves
Employee loans ................. -- -- -- 1,469,143 -- 1,469,143
------------ ------------ ------------ ------------ ------------ ------------
111,008,195 28,257,934 2,802,271 1,469,143 -- 143,537,543
Contributions receivable:
Employee ......................... -- -- -- -- 270,707 270,707
Employer ......................... -- -- -- -- 56,060 56,060
Dividends receivable ................ -- -- -- -- 249,399 249,399
Interest receivable ................. -- -- -- -- 1,319 1,319
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits ... $111,008,195 28,257,934 2,802,271 1,469,143 606,232 144,143,775
============ ============ ============ ============ ============ ============
* Accessor funds shown in detail in note 6.
(continued)
11
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Statement of Net Assets Available for Benefits by Fund Type
Year ended December 31, 1997
Zions Fidelity
Bancorp- U.S.
oration govern-
common Accessor ment Employee
stock funds* reserves loans Total
------------ ------------ ------------ ------------ ------------
Assets:
Cash and cash equivalents .............. $ 34,561 54,545 -- 47,005 136,111
Investments, at fair value:
Zions Bancorporation common stock ... 83,746,551 -- -- -- 83,746,551
Accessor funds ...................... -- 19,380,190 -- -- 19,380,190
Fidelity U.S. government reserves ... -- -- 2,406,968 -- 2,406,968
Employee loans ...................... -- -- -- 1,581,233 1,581,233
------------ ------------ ------------ ------------ ------------
83,746,551 19,380,190 2,406,968 1,581,233 107,114,942
Contributions receivable:
Employee ............................ 15,626 17,999 2,230 -- 35,855
Employer ............................ 3,050 3,280 407 -- 6,737
Dividends receivable .................. 221,478 -- -- -- 221,478
Interest receivable ................... 818 -- -- 2,409 3,227
Wires receivable ...................... -- 9,502 1,177 -- 10,679
------------ ------------ ------------ ------------ ------------
Total assets ................... 84,022,084 19,465,516 2,410,782 1,630,647 107,529,029
Liabilities - accounts payable ........... 21,847 16,266 560 1,810 40,483
------------ ------------ ------------ ------------ ------------
Net assets available for benefits ......... $ 84,000,237 19,449,250 2,410,222 1,628,837 107,488,546
============ ============ ============ ============ ============
* Accessor funds shown in detail in note 6.
(continued)
12
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Statement of Changes in Net Assets Available for Benefits by Fund Type
Year ended December 31, 1998
Zions Fidelity
Bancorporation U.S.
common Accessor government Employee
stock funds* reserves loans Other Total
------------ ------------ ------------ ------------ ------------ ------------
Additions to net assets
attributed to:
Investment income:
Net appreciation in
fair value of investments...... $ 30,451,745 4,181,224 39,330 -- -- 34,672,299
Dividends ....................... 723,420 313,486 116,269 -- 249,431 1,402,606
Interest ........................ 4,695 2,311 -- 148,110 1,319 156,435
------------ ------------ ------------ ------------ ------------ ------------
31,179,860 4,497,021 155,599 148,110 250,750 36,231,340
------------ ------------ ------------ ------------ ------------ ------------
Contributions:
Employee .......................... 1,935,542 2,488,565 198,963 -- 270,707 4,893,777
Employer .......................... 397,767 511,144 26,812 -- 56,060 991,783
Plan rollovers -
nonaffiliated plan .............. 1,309,368 1,840,568 98,218 -- -- 3,248,154
------------ ------------ ------------ ------------ ------------ ------------
3,642,677 4,840,277 323,993 -- 326,767 9,133,714
------------ ------------ ------------ ------------ ------------ ------------
Principal loan payments ............. 556,538 136,587 231,093 (952,933) 28,715 --
------------ ------------ ------------ ------------ ------------ ------------
Total additions .............. 35,379,075 9,473,885 710,685 (804,823) 606,232 45,365,054
Deductions from net assets attributed to:
Benefits paid to ................... 6,728,228 1,126,134 687,458 168,005 -- 8,709,825
participants
Loans disbursed .................... 476,395 316,966 19,773 (813,134) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total deductions ............. 7,204,623 1,443,100 707,231 (645,129) -- 8,709,825
------------ ------------ ------------ ------------ ------------ ------------
Interfund transfers .................... (1,166,494) 777,899 388,595 -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)....... 27,007,958 8,808,684 392,049 (159,694) 606,232 36,655,229
Net assets available for benefits:
Beginning of year ................... 84,000,237 19,449,250 2,410,222 1,628,837 -- 107,488,546
------------ ------------ ------------ ------------ ------------ ------------
End of year ......................... $111,008,195 28,257,934 2,802,271 1,469,143 606,232 144,143,775
============ ============ ============ ============ ============ ============
* Accessor funds shown in detail in note 6.
(continued)
13
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Statement of Changes in Net Assets Available for Benefits by Fund Type
Year ended December 31, 1997
Zions Fidelity
Bancorp- U.S.
oration govern-
common Fidelity Money Fixed Accessor ment Employee
stock mutual fund market income funds* reserves loans Total
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation)
in fair value
of investments ........... $35,955,118 2,009,330 -- 10,674 (1,190,747) 33,827 -- 36,818,202
Dividends .................. 1,081,318 -- -- 39,451 1,911,698 20,609 -- 3,053,076
Interest ................... 6,377 665 137,608 721 1,380 -- 132,316 279,067
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
37,042,813 2,009,995 137,608 50,846 722,331 54,436 132,316 40,150,345
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Contributions:
Employee ................... 1,209,640 597,263 137,829 65,191 627,369 77,745 -- 2,715,037
Employer ................... 256,049 129,112 12,726 11,954 118,990 14,746 -- 543,577
Plan rollovers
-nonaffiliated plan ...... 1,559,859 102,668 38,611 39,018 2,090,624 301,365 -- 4,132,145
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
3,025,548 829,043 189,166 116,163 2,836,983 393,856 -- 7,390,759
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Principal loan payments....... 455,302 74,763 42,000 3,000 120,022 21,008 (716,095) --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions.......... 40,523,663 2,913,801 368,774 170,009 3,679,336 469,300 (583,779) 47,541,104
Deductions from net
assets attributed
to:
Benefits paid to
participants ............. 3,069,345 242,982 199,921 51,330 279,353 608,285 99,474 4,550,690
Loans disbursed ............ 552,521 169,997 69,472 -- 127,725 22,356 (942,071) --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions......... 3,621,866 412,979 269,393 51,330 407,078 630,641 (842,597) 4,550,690
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Interfund transfers .............. (1,346,059)(11,439,039) (4,779,540) (1,183,917) 16,176,992 2,571,563 -- --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) . 35,555,738 (8,938,217) (4,680,159) (1,065,238) 19,449,250 2,410,222 258,818 42,990,414
Net assets available for benefits:
Beginning of year .......... 48,444,499 8,938,217 4,680,159 1,065,238 -- -- 1,370,019 64,498,132
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
End of year ................ $84,000,237 -- -- -- 19,449,250 2,410,222 1,628,837 107,488,546
=========== =========== =========== =========== =========== =========== =========== ===========
* Accessor funds shown in detail at note 6.
(continued)
14
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Statement of Changes in Net Assets Available for Benefits by Fund Type
Year ended December 31, 1996
Zions
Bancorporation Fidelity
common mutual Money Fixed Employee
stock fund market income loans Total
------------ ------------ ------------ ------------ ------------ ------------
Additions to net assets attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments ............... $ 11,090,943 1,039,045 -- (24,718) -- 12,105,270
Dividends ............................ 581,303 75,331 -- 75,411 -- 732,045
Interest ............................. 1,972 1,695 222,032 456 135,613 361,768
------------ ------------ ------------ ------------ ------------ ------------
11,674,218 1,116,071 222,032 51,149 135,613 13,199,083
------------ ------------ ------------ ------------ ------------ ------------
Contributions:
Employee ............................. 829,922 898,971 220,000 100,376 -- 2,049,269
Employer ............................. 172,015 188,689 51,176 18,135 -- 430,015
Plan rollovers ....................... 250,017 80,839 15,152 179,841 -- 525,849
------------ ------------ ------------ ------------ ------------ ------------
1,251,954 1,168,499 286,328 298,352 -- 3,005,133
------------ ------------ ------------ ------------ ------------ ------------
Principal loan payments .................... 462,897 119,887 131,170 25,426 (739,380) --
------------ ------------ ------------ ------------ ------------ ------------
Total additions .............. 13,389,069 2,404,457 639,530 374,927 (603,767) 16,204,216
Deductions from net assets attributed to:
Benefits paid to participants .......... 2,332,669 453,309 317,861 137,634 95,875 3,337,348
Loans disbursed ........................ 465,087 179,736 81,083 11,244 (737,150) --
------------ ------------ ------------ ------------ ------------ ------------
Total deductions ............ 2,797,756 633,045 398,944 148,878 (641,275) 3,337,348
------------ ------------ ------------ ------------ ------------ ------------
Interfund transfers ........................ (313,598) 499,516 69,855 (255,773) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) ...... 10,277,715 2,270,928 310,441 (29,724) 37,508 12,866,868
Net assets available for benefits:
Beginning of year ...................... 38,166,784 6,667,289 4,369,718 1,094,962 1,332,511 51,631,264
------------ ------------ ------------ ------------ ------------ ------------
End of year ............................ $ 48,444,499 8,938,217 4,680,159 1,065,238 1,370,019 64,498,132
============ ============ ============ ============ ============ ============
(continued)
15
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(6) Financial Information by Accessor Funds Investment Option
Statement of Changes in Accessor Funds Net Assets Available
for Benefits by Investment Option
Year ended December 31, 1998
Short-
term
Inter- inter-
Value Small Inter- mediate mediate
and to mid- national fixed Mortgage fixed
Growth income cap equity income securities income Total
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Additions to net assets
attributed to:
Investment income:
Net appreciation in fair
value of investments ............ $2,373,297 461,472 777,111 449,622 73,451 5,104 41,167 4,181,224
Dividends ......................... 9,849 52,715 -- -- 194,392 48,551 7,979 313,486
Interest .......................... 406 1,753 152 -- -- -- -- 2,311
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,383,552 515,940 777,263 449,622 267,843 53,655 49,146 4,497,021
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Contributions:
Employee .............................. 780,655 397,915 545,484 314,782 241,053 123,519 85,157 2,488,565
Employer .............................. 161,407 80,626 113,335 64,343 49,438 24,533 17,462 511,144
Plan rollovers
-nonaffiliated plans ................ 552,296 560,310 341,629 146,239 119,154 78,169 42,771 1,840,568
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1,494,358 1,038,851 1,000,448 525,364 409,645 226,221 145,390 4,840,277
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Principal loan payments ................. 34,309 21,084 27,025 18,054 16,845 11,963 7,307 136,587
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total additions .................. 3,912,219 1,575,875 1,804,736 993,040 694,333 291,839 201,843 9,473,885
Deductions from net assets attributed to:
Benefits paid
to participants ................... 235,970 225,348 239,349 178,271 167,032 21,651 58,513 1,126,134
Loans disbursed ..................... 81,064 61,133 55,110 26,614 76,988 8,321 7,736 316,966
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total deductions ................. 317,034 286,481 294,459 204,885 244,020 29,972 66,249 1,443,100
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Interfund transfers ..................... 619,581 190,387 284,625 (82,735) 252,196 136,242 (622,397) 777,899
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase
(decrease) ..................... 4,214,766 1,479,781 1,794,902 705,420 702,509 398,109 (486,803) 8,808,684
Net assets
available for benefits:
Beginning of year ................... 4,280,431 3,386,177 4,113,602 2,729,008 3,070,995 641,784 1,227,253 19,449,250
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
End of year ......................... $8,495,197 4,865,958 5,908,504 3,434,428 3,773,504 1,039,893 740,450 28,257,934
========== ========== ========== ========== ========== ========== ========== ==========
16
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(6) Financial Information by Accessor Funds Investment Option
Statement of Changes in Accessor Funds Net Assets Available
for Benefits by Investment Option
Year ended December 31, 1997
Short-
term
Inter- inter-
Value Small Inter- mediate mediate
and to mid- national fixed Mortgage fixed
Growth income cap equity income securities income Total
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Additions to net assets
attributed to:
Investment income (loss)..............$ 118,302 220,511 394,169 (157,230) 110,284 18,387 17,908 722,331
Contributions ......................... 652,443 465,441 575,766 454,634 421,771 91,294 175,634 2,836,983
Principal loan payments ............... 36,217 16,821 26,259 22,879 11,886 2,411 3,549 120,022
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total additions.................... 806,962 702,773 996,194 320,283 543,941 112,092 197,091 3,679,336
Deductions from net assets attributed to:
Benefits paid
to participants..................... 108,867 31,295 47,247 44,652 33,046 730 13,516 279,353
Loans disbursed ...................... 38,541 17,901 27,944 24,347 12,649 2,566 3,777 127,725
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total deductions .................. 147,408 49,196 75,191 68,999 45,695 3,296 17,293 407,078
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Interfund transfers....................... 3,620,877 2,732,600 3,192,599 2,477,724 2,572,749 532,988 1,047,455 16,176,992
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase ...................... 4,280,431 3,386,177 4,113,602 2,729,008 3,070,995 641,784 1,227,253 19,449,250
Net assets available for benefits:
Beginning of year....................... -- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
End of year ..........................$4,280,431 3,386,177 4,113,602 2,729,008 3,070,995 641,784 1,227,253 19,449,250
========== ========== ========== ========== ========== ========== ========== ==========
17
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
(a) (e)
Party in (b) (c) (d) Current
interest Issuer Investment description Cost (1) value
- ------------ -------------------- ---------------------------------------------- ----------- -----------
* Investments at fair value determined by quoted
market prices:
Zions Bancorporation Zions Bancorporation common stock $21,778,604 111,008,195
Accessor Accessor growth fund adv class 6,867,230 8,495,197
Accessor value and income adv class 4,797,594 4,865,958
Accessor small to mid-cap adv class 5,416,724 5,908,504
Accessor international equity adv class 3,026,980 3,434,428
Accessor intermediate fixed income adv
class 3,745,727 3,773,504
Accessor mortgage securities adv class 1,048,810 1,039,893
Accessor short-term intermediate fixed
income adv class 744,989 740,450
Fidelity
Investments
Institutional
Brokerage Group Fidelity U.S. government reserves 2,802,271 2,802,271
Investments at fair value which is
approximated by book value -
participant loans (261) with interest
between 7 and 10.5 percent and
maturing by 2026 1,469,143 1,469,143
----------- -----------
$51,698,072 143,537,543
=========== ===========
Notes:
* Party-in-interest
There were no nonexempt party-in-interest transactions.
There were no assets which were both acquired and disposed of during the
year.
(1) Cost is determined using the average-cost method applied on a participant-
by-participant basis.
18
ZIONS BANCORPORATION
EMPLOYEE INVESTMENT SAVINGS PLAN
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
(h)
Current
(a) value
Identity of (c) (g) of asset
party (b) Purchase (d) Cost of on trans- (i)
involved Description of asset price Selling price asset action date Net gain
- --------------- -------------------- ---------------- -------------- ------------ -------------- --------------
Zions
Bancorp- Zions Bancorporation
oration common stock $ - 9,207,511 1,704,972 9,207,511 7,502,539
Zions Bancorporation
common stock 6,219,975 - - 6,219,975 -
19