Zions Bancorporation Reports 22.7% Increase In Operating Cash Earnings Per Share for the First Quarter

Asset Quality Remains Strong



Apr 19, 2001, 01:00 ET from Zions Bancorporation

    SALT LAKE CITY, April 19 /PRNewswire/ -- Zions Bancorporation
 (Nasdaq:   ZION) today reported net income of $73.5 million, or $0.82 per
 diluted share for the first quarter of 2001, before merger-related charges of
 $1.6 million ($0.02 per share) and non-recurring charges related to the
 reclassification of investment securities and the related cumulative effect of
 a change in accounting principle totaling $7.2 million ($0.08 per share).
 This net income and earnings per share performance represented an increase of
 28.9% and 24.2%, respectively, in comparison with the $57.0 million, or
 $0.66 per share, for the first quarter of 2000.  Included in the first quarter
 of 2001 are net operating losses at Digital Signature Trust Company of
 $2.9 million or $0.03 per share.  During the quarter, the Company completed
 its mergers with Draper Bancorp, and its subsidiary Draper Bank & Trust, and
 Eldorado Bancshares, and its subsidiaries Antelope Valley Bank and Eldorado
 Bank.  In April, the Company acquired the Arizona branches of Pacific Century
 Bank.
     Operating cash earnings for the first quarter were $81.9 million, or
 $0.92 per diluted share, an increase of 26.4% and 22.7%, respectively, over
 the $64.8 million, or $0.75 per diluted share, earned in the same quarter last
 year.  Operating cash return on equity was 26.7% and operating cash return on
 assets was 1.55%. During the first quarter, the interest margin was 4.59%,
 compared to 4.37% in the fourth quarter of 2000.  The operating cash
 efficiency ratio was 57.5% for the first quarter compared to 56.8% for the
 previous quarter.  Operating cash earnings are earnings before amortization of
 goodwill and core deposit intangible assets, merger-related charges, and the
 cumulative effect of a change in accounting principle.  Operating cash
 performance ratios are determined as if goodwill, core deposit intangible
 assets, merger-related charges, and the cumulative effect of a change in
 accounting principle have not been recognized in the financial statements.
     "We are off to a great start for the year," remarked Harris Simmons,
 president and chief executive officer of Zions.  "Despite the economic
 headwind facing many financial institutions, we continue to have strong
 linked-quarter loan and deposit growth, a substantial expansion of our
 interest margin and stable asset quality.  Our investment gain in Star System
 also benefited our shareholders and eased the pain from the broad-based
 decline in Internet-related entities and consequent write downs in our venture
 capital portfolio.  I am also delighted to welcome our new customers,
 shareholders and employees from Antelope Valley Bank, Draper Bank, Eldorado
 Bank, and Pacific Century Bank in Arizona to one of the premier financial
 services companies in the nation."
 
     Double Digit Loan Growth
     At March 31, 2001, on-balance sheet and sold and serviced loans increased
 20.4% to $17.26 billion and deposits increased 15.5% to $16.85 billion over
 the balances reported one year ago. Excluding loans and deposits acquired
 during the past year from mergers with County Bank, Draper Bancorp and
 Eldorado Bancshares, loans increased 13.0% and deposits were up 5.3%.  For the
 quarter, taxable-equivalent net interest income increased 13.3% to
 $220.7 million compared to the first quarter of 2000.
 
     Strong Noninterest Income Growth
     Noninterest income was $111.8 million, an increase of 84.4% compared to
 the first quarter of 2000, including a gain of $50.2 million from the
 Company's investment in Star System, partially offset by valuation adjustments
 to its venture capital investments of $22.4 million.  Operating cash
 noninterest expense was up 27.9% to $191.2 million, including $14.4 million in
 non-recurring charges related to certain benefit obligations, consulting
 services, and closed business operations.
 
     Asset Quality Remains Healthy
     The ratio of nonperforming assets (NPAs) to total loans and other real
 estate owned was 0.53% at March 31, 2001 compared to 0.49% at December 31,
 2000.  Zions' ratio of NPAs to total loans continues to be well below the
 recent industry average of 0.80%.  For the quarter, net loan and lease losses
 were $6.1 million, or on an annualized basis, 0.17% of average loans.  At
 March 31, 2001, the allowance for loan losses of $221.2 million was
 approximately three times nonperforming loans of $73.3 million and 1.43% of
 total loans.
 
     Conference Call
     Zions will host a conference call to discuss these first quarter results
 at 5:00 p.m. EDT this afternoon (April 19, 2001).  Investors, analysts and
 other interested parties are invited to listen to this discussion by calling
 1-800-248-9412.  A replay of the call will be available until midnight EDT on
 Monday, April 23, 2001 by dialing 1-800-633-8284 or 858-812-6440, and entering
 passcode 18378089.
 
     About Zions Bancorporation
     Zions Bancorporation is one of the nation's premier financial services
 companies, consisting of a collection of great banks in some of the country's
 best growth markets.  Under local management teams and community identities,
 Zions operates over 400 full-service banking offices in Arizona, California,
 Colorado, Idaho, Nevada, New Mexico, Utah and Washington.  In addition, Zions
 is the only primary dealer in government securities headquartered in the
 Western U.S., and is a national leader in SBA lending, public finance advisory
 services, agricultural finance and electronic bond trading.  Through its
 subsidiary, Digital Signature Trust, the company is a leader in providing
 trusted Internet identity credentials.  Forbes magazine recently named Zions
 one of America's best big companies.  Investor information and links to
 subsidiary banks can be accessed at www.zionsbancorporation.com.
 
     Forward Looking Information
     This news release contains statements regarding the projected performance
 of Zions and its subsidiaries.  These statements constitute forward-looking
 information within the meaning of the Private Securities Litigation Reform
 Act.  Actual results of achievements may differ materially from the
 projections provided in this release since such projections involve
 significant known and unknown risks and uncertainties.  Factors that might
 cause such differences include, but are not limited to: competitive pressures
 among financial institutions increasing significantly; economic conditions,
 either nationally or locally in areas in which the Company conducts operations
 being less favorable than expected; and legislation or regulatory changes
 which adversely affect the ability of the company to conduct, or the
 accounting for, business combinations or new operations.  The Company
 disclaims any obligation to update such factors or to publicly announce the
 results of any revisions to any of the forward looking statements included
 herein to reflect future events or developments.
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      FINANCIAL HIGHLIGHTS
      (Unaudited)
 
     (In thousands, except per             Three Months Ended
      share and ratio data)                     March 31,
                                           2001          2000      % Change
     EARNINGS
     Taxable-equivalent net
      interest income                   $220,709       $194,840      13.28 %
     Net interest income                 215,837        190,992      13.01 %
     Noninterest income (3)              111,769         60,600      84.44 %
     Impairment loss First Security
      Corporation common stock (1)            --        (96,911)
     Provision for loan losses            12,772          5,248     143.37 %
     Noninterest expenses                203,399        200,312       1.54 %
     Income (loss) before income taxes   111,435        (50,879)
     Income taxes (benefit)               41,138        (21,955)
     Minority interest                    (1,604)          (432)    271.30 %
     Cumulative effect of
      adoption of FASB Stmt 133           (7,159)            --
     Net income (loss)                    64,742        (28,492)
 
     PER COMMON SHARE
     Net income (loss) (diluted)
      before cumulative effect              0.80          (0.33)
     Cumulative effect of adoption
      of FASB Stmt 133                     (0.08)            --
     Net income (loss) (diluted)            0.72          (0.33)
     Dividends                              0.20           0.29     (31.03)%
     Book value                            22.99          18.50      24.27 %
 
     SELECTED RATIOS
     Return on average assets               1.19 %        (0.54)%
     Return on average common equity       13.94 %        (6.91)%
     Efficiency ratio (3)                  61.18 %        78.42 %
     Net interest margin                    4.59 %         4.14 %
 
     OPERATING CASH EARNINGS (2) (3)
     Taxable-equivalent net
      interest income                   $220,709       $194,840      13.28 %
     Net interest income                 215,837        190,992      13.01 %
     Noninterest income                  111,769         60,600      84.44 %
     Provision for loan losses            12,772          5,248     143.37 %
     Noninterest expenses                191,245        149,479      27.94 %
     Income before income taxes          123,589         96,865      27.59 %
     Income taxes                         43,062         32,219      33.65 %
     Minority interest                    (1,404)          (115)   1120.87 %
     Net income before cumulative
      effect of adoption of
      FASB Stmt 133                       81,931         64,761      26.51 %
 
 
     PER COMMON SHARE
     Net income (diluted)                   0.92           0.75      22.67 %
     Dividends                              0.20           0.29     (31.03)%
     Book value                            14.69          10.84      35.52 %
 
     SELECTED RATIOS
     Return on average assets               1.55 %         1.26 %
     Return on average common equity       26.65 %        26.14 %
     Efficiency ratio                      57.52 %        58.52 %
     Net interest margin                    4.59 %         4.14 %
 
      (1) This investment was written down to $14.11 per common share.
      (2) Before amortization of goodwill and core deposit intangible assets,
          merger related expense and the cumulative effect of adoption of FASB
          Statement No. 133.
      (3) Excludes impairment loss on First Security Corporation common stock.
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      FINANCIAL HIGHLIGHTS (Continued)
      (Unaudited)
 
                                         Three Months Ended
     (In thousands, except per share          March 31,
      and ratio data)                    2001           2000        % Change
 
     AVERAGE BALANCES
     Total assets                    $22,142,791    $21,409,208       3.43 %
     Securities                        4,080,038      4,646,358     (12.19)%
     Net loans and leases             14,605,416     12,896,311      13.25 %
     Goodwill                            568,406        581,726      (2.29)%
     Core deposit intangibles             69,040         81,132     (14.90)%
     Total deposits                   15,131,719     14,253,368       6.16 %
     Minority Interest                    53,572         39,664      35.06 %
     Shareholders' equity              1,884,101      1,659,335      13.55 %
 
     Weighted average common and
      common-equivalent shares
      outstanding                     89,494,543     86,459,054       3.51 %
 
     AT PERIOD END
     Total assets                     23,548,179     20,996,557      12.15 %
     Securities                        3,752,402      4,333,452     (13.41)%
     Net loans and leases             15,486,688     13,124,365      18.00 %
     Sold loans being serviced (1)     1,776,139      1,217,401      45.90 %
     Allowance for loan losses           221,245        200,065      10.59 %
     Goodwill                            670,571        575,935      16.43 %
     Core deposit intangibles             92,823         80,995      14.60 %
     Total deposits                   16,845,000     14,584,776      15.50 %
     Minority Interest                    53,611         40,079      33.76 %
     Shareholders' equity              2,116,054      1,585,667      33.45 %
 
     Common shares outstanding        92,060,315     85,694,426       7.43 %
 
     Average equity to average assets       8.51 %         7.75 %
     Common dividend payout                28.51 %        43.60 % (2)
     Nonperforming assets                 82,265         77,012       6.82 %
     Loans past due 90 days or more       45,983         29,294      56.97 %
     Nonperforming assets to net loans
      and leases, other real estate
      owned and other nonperforming
      assets at March 31                    0.53 %         0.59 %
 
       (1) Amount represents the outstanding balance of loans sold and being
           serviced by the Company, excluding long-term first mortgage
           residential real estate loans.
       (2) Before impairment loss on First Security Corporation common stock.
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED BALANCE SHEETS
      (Unaudited)
 
     (In thousands, except            March 31,     December 31,   March 31,
      share amounts)                    2001            2000         2000
 
     ASSETS
     Cash and due from banks         $1,061,125      $1,047,252     $929,763
     Money market investments:
       Interest-bearing deposits          1,068          21,237       18,019
       Federal funds sold               329,028          50,426      185,937
       Security resell agreements       706,106         456,404      582,730
     Investment securities:
       Held to maturity, at cost
        (approximate market value
         $51,559, $3,152,740,
          and $3,251,145)                51,559       3,125,433    3,294,839
       Available for sale, at market
        (includes $143,341 at March 31,
        2001 and $151,424 at December
        31, 2000 pledged to
        creditors)                    3,374,519         782,466      641,846
       Trading account, at market
        (includes $232,811 at
        March 31, 2001 and $15,096
        at December 31, 2000 pledged
        to creditors)                   326,324         280,410      396,767
                                      3,752,402       4,188,309    4,333,452
     Loans:
       Loans held for sale              210,654         181,159      179,332
       Loans, leases and other
        receivables                  15,359,827      14,276,999   13,003,980
                                     15,570,481      14,458,158   13,183,312
     Less:
       Unearned income and fees,
        net of related costs             83,793          80,125       58,947
       Allowance for loan losses        221,245         195,535      200,065
         Net loans                   15,265,443      14,182,498   12,924,300
 
     Premises and equipment, net        338,048         314,938      290,752
     Goodwill                           670,571         571,365      575,935
     Core deposit intangibles            92,823          70,075       80,995
     Other real estate owned              8,963           9,574        7,508
     Other assets                     1,322,602       1,027,365    1,067,166
                                    $23,548,179     $21,939,443  $20,996,557
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Deposits:
       Noninterest-bearing demand    $4,140,122      $3,585,672   $3,426,885
       Interest-bearing:
        Savings and money market      8,945,391       8,270,122    7,982,643
        Time under $100,000           1,890,130       1,628,890    1,748,093
        Time over $100,000            1,774,215       1,448,905    1,283,157
        Foreign                          95,142         136,394      143,998
                                     16,845,000      15,069,983   14,584,776
 
     Securities sold, not
      yet purchased                     233,758         291,102      257,605
     Federal funds purchased            686,785       1,069,124      952,471
     Security repurchase agreements   1,587,643       1,327,721    1,481,892
     Accrued liabilities                678,442         310,287      399,027
     Commercial paper                   296,154         198,239      305,618
     Federal Home Loan Bank advances
      and other borrowings:
       Less than one year               438,228       1,290,960      801,574
       Over one year                    151,161         143,776      150,201
     Long-term debt                     461,343         419,550      437,647
         Total liabilities           21,378,514      20,120,742   19,370,811
 
     Minority interest                   53,611          39,857       40,079
 
     Shareholders' equity:
       Capital stock:
        Preferred stock, without
         par value; authorized
         3,000,000 shares; issued
         and outstanding, none               --              --           --
        Common stock, without par
         value; authorized
         200,000,000 shares; issued
         and outstanding 92,060,315,
         87,100,188, and
         85,694,426 shares            1,111,202         907,604      888,725
     Accumulated other
      comprehensive income (loss)        57,985          (3,644)     (25,500)
     Retained earnings                  946,867         874,884      722,442
         Total shareholders' equity   2,116,054       1,778,844    1,585,667
                                    $23,548,179     $21,939,443  $20,996,557
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED STATEMENTS OF OPERATIONS
      (Unaudited)
                                                         Three Months Ended
     (In thousands, except per share amounts)                March 31,
                                                       2001           2000
     Interest income:
       Interest and fees on loans                    $321,572       $280,384
       Interest on loans held for sale                  3,084          3,319
       Lease financing                                  5,020          4,212
       Interest on money market investments            10,214         20,089
       Interest on securities:
         Held to maturity - taxable                       985         48,742
         Held to maturity - nontaxable                     --          4,013
         Available for sale - taxable                  48,976          8,562
         Available for sale - nontaxable                6,064          1,278
         Trading account                               10,998          8,956
         Total interest income                        406,913        379,555
 
     Interest expense:
       Interest on savings and money market deposits   77,055         74,896
       Interest on time and foreign deposits           46,530         39,096
       Interest on borrowed funds                      67,491         74,571
         Total interest expense                       191,076        188,563
 
         Net interest income                          215,837        190,992
     Provision for loan losses                         12,772          5,248
         Net interest income after provision
          for loan losses                             203,065        185,744
 
     Noninterest income:
       Service charges on deposit accounts             22,080         19,049
       Other service charges, commissions and fees     18,262         15,839
       Trust income                                     4,775          4,487
       Investment securities gains (losses), net       (8,882)         1,135
       Impairment loss on First Security
        Corporation stock                                  --        (96,911)
       Underwriting and trading income                  5,637          3,347
       Loan sales and servicing income                 19,595          9,824
       Other                                           50,302          6,919
         Total noninterest income                     111,769        (36,311)
 
     Noninterest expense:
       Salaries and employee benefits                 107,115         81,137
       Occupancy, net                                  14,567         12,219
       Furniture and equipment                         14,256         12,768
       Other real estate expense                          182            299
       Legal and professional services                  7,615          4,990
       Supplies                                         2,919          2,506
       Postage                                          3,108          3,042
       Advertising                                      5,869          4,564
       Merger related expense                           2,537         41,543
       FDIC premiums                                      735            867
       Amortization of goodwill                         7,051          6,414
       Amortization of core deposit intangibles         2,566          2,876
       Other                                           34,879         27,087
         Total noninterest expense                    203,399        200,312
 
         Income (loss) before income taxes (benefit)  111,435        (50,879)
     Income taxes (benefit)                            41,138        (21,955)
         Income (loss) before minority interest
          and cumulative effect of change
          in accounting principle                      70,297        (28,924)
     Minority interest                                 (1,604)          (432)
         Income (loss) before cumulative effect
          of change in accounting principle            71,901        (28,492)
     Cumulative effect of change in accounting
      principle, adoption of FASB Statement No. 133,
      net of income tax benefit of $4,521              (7,159)            --
         Net income (loss)                            $64,742       $(28,492)
 
     Weighted average common and common equivalent
      shares outstanding during the period
         Basic                                         88,247         85,642
         Diluted                                       89,495         86,459
 
     Net income (loss) per common share:
       Income (loss) before cumulative effect of
        change in accounting principle:
         Basic                                          $0.81         $(0.33)
         Diluted                                         0.80          (0.33)
       Cumulative effect of change in accounting
        principle, adoption of FASB Statement No. 133:
         Basic                                          (0.08)            --
         Diluted                                        (0.08)            --
       Net income (loss):
         Basic                                          $0.73         $(0.33)
         Diluted                                         0.72          (0.33)
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
       AND COMPREHENSIVE INCOME (LOSS)
      (Unaudited)
                            Three Months Ended March 31, 2001
                       Accumulated Other Comprehensive
                                Income (Loss)
 
                                        Net
                     Net Unrealized Unrealized
                      Gains (Losses) Gains on                           Total
               Common     on       Derivative          Retained Shareholders'
                Stock  Investments Instruments Subtotal Earnings        Equity
     (In
      thousands)
 
     Balance,
      January 1,
      2001      $907,604  $(3,644)            $(3,644)   $874,884  $1,778,844
     Comprehensive
      income:
      Net income
       for the
       period                                              64,742      64,742
      Other
       comprehensive
       income:
       Net realized
        and
        unrealized
        holding
        gains during
        the period,
        net of tax
        expense of
        $6,536              10,551              10,551
       Reclassification
        for net
        realized losses
        recorded in
        operations, net
        of tax benefit
        of $3,398            5,484               5,484
       Change in net
        unrealized
        gains on
        derivative
        instruments, net
        of tax expense
        of $6,857                     11,069    11,069
       Cumulative effect
        of change in
        accounting
        principle,
        adoption of
        FASB Statement
        No. 133, net of
        income tax
        expense of
        $21,245             13,259    21,266    34,525
       Other
        comprehensive
        income              29,294    32,335    61,629                 61,629
      Total
       comprehensive
       income                                                         126,371
     Cash dividends
      --common, $.20
      per share                                           (18,458)    (18,458)
     Issuance of common
      shares for
      acquisitions199,680                                  25,699     225,379
     Stock options
      exercised, net of
      shares tendered
      and retired   3,918                                               3,918
 
     Balance,
      March 31,
      2001     $1,111,202  $25,650   $32,335   $57,985   $946,867  $2,116,054
 
 
                            Three Months Ended March 31, 2000
                       Accumulated Other Comprehensive
                                Income (Loss)
 
                        Net Unrealized
                        Gains (Losses)                                  Total
                 Common     on                         Retained Shareholders'
                  Stock  Investments           Subtotal Earnings        Equity
     (In
      thousands)
 
     Balance,
      January
      1, 2000    $888,231  $(4,158)            $(4,158)  $775,765  $1,659,838
     Comprehensive
      loss:
      Net loss for
       the period                                         (28,492)    (28,492)
      Other
       comprehensive
       income (loss):
       Net realized and
        unrealized
        holding
        losses during
        the period, net
        of tax benefit
        of $49,854         (80,484)            (80,484)
       Reclassification
        for net realized
        losses recorded
        in operations,
        net of tax
        benefit
        of $36,634          59,142              59,142
       Other
        comprehensive
        loss               (21,342)            (21,342)               (21,342)
      Total
       comprehensive
       loss                                                           (49,834)
     Cash dividends
      -- common, $.29
      per share                                           (24,831)    (24,831)
     Stock redeemed
      and retired (3,812)                                              (3,812)
     Stock options
      exercised, net
      of shares
      tendered and
      retired       4,306                                               4,306
     Balance,
      March 31,
      2000       $888,725  $(25,500)          $(25,500)  $722,442  $1,585,667
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      Sold Loans Being Serviced*
      (Unaudited)
                                    Three Months       Year      Three Months
                                        Ended          Ended         Ended
                                       March 31,    December 31,   March 31,
     (In thousands)                      2001           2000         2000
 
     Balance at beginning of period   $1,750,408     $1,252,791   $1,252,791
     Add:
       New loans sold                    209,959      1,141,279      130,997
     Deduct:
       Payments and other reductions    (184,228)      (643,662)    (166,387)
     Balance at end of period         $1,776,139     $1,750,408   $1,217,401
 
     * Amount represents the outstanding balance of loans and receivables sold
     and being serviced by the company, excluding long-term first mortgage
     residential real estate loans.
 
     Nonperforming Assets
     (Unaudited)
 
                                        March 31,     December 31,  March 31,
     (In thousands)                        2001           2000         2000
 
     Nonaccrual loans                    $70,665        $57,800      $68,684
     Restructured loans                    2,637          3,174          820
     Other real estate owned and other
      nonperforming assets                 8,963          9,574        7,508
     Total                               $82,265        $70,548      $77,012
     % of Net loans and leases*, other
      real estate owned and other
      nonperforming assets                  0.53%          0.49%        0.59%
 
     Accruing loans past due
      90 days or more                    $45,983        $27,458      $29,294
 
     % of Net loans and leases*             0.30%          0.19%        0.22%
 
     *Includes loans held for sale.
 
     Allowance for Loan Losses
     (Unaudited)
                                      Three Months       Year    Three Months
                                         Ended          Ended         Ended
                                        March 31,     December 31, March 31,
     (In thousands)                        2001          2000          2000
 
     Balance at beginning of period     $195,535       $204,114     $204,114
     Allowance for loan losses of
      companies acquired                  19,072          1,961
     Add:
      Provision for losses                12,772         31,811        5,248
     Deduct:
      Loan and lease charge-offs          (9,210)       (52,641)     (11,289)
      Recoveries                           3,076         10,290        1,992
        Net loan and lease charge-offs    (6,134)       (42,351)      (9,297)
     Balance at end of period           $221,245       $195,535     $200,065
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      LOAN BALANCES BY PORTFOLIO TYPE
      (Unaudited)
 
      (In millions)
                                         March 31,     December 31,  March 31,
                                            2001           2000        2000
     Types
     Loans held for sale                    $211           $181         $179
     Commercial, financial,
      and agricultural                     3,818          3,615        3,045
     Real estate:                                                         --
       Construction                        2,463          2,273        1,877
       Other:                                                             --
         Home equity credit line             305            263          227
         1-4 family residential            2,933          2,911        2,798
         Other real estate-secured         4,679          4,190        4,100
                                           7,917          7,364        7,125
                                          10,380          9,637        9,002
 
       Consumer:
         Bankcard                            106            135          114
         Other                               616            472          476
                                             722            607          590
 
     Lease financing                         360            317          273
     Foreign Loans                            27             26           42
     Other receivables                        52             75           52
         Total loans                     $15,570        $14,458      $13,183
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
      (Unaudited)
                                                   Three Months Ended
                                                      March 31, 2001
                                           Average    Amount of       Average
     (In thousands)                        Balance    Interest(1)      Rate
     ASSETS
     Money market investments              $799,148     $10,214        5.18%
     Securities:
       Held to maturity                      51,975         985        7.69%
       Available for sale                 3,294,006      58,305        7.18%
       Trading account                      734,057      10,998        6.08%
         Total securities                 4,080,038      70,288        6.99%
 
     Loans:
       Loans held for sale                  180,054       3,084        6.95%
       Net loans and leases(2)           14,425,362     328,199        9.23%
         Total loans                     14,605,416     331,283        9.20%
     Total interest-earning assets       19,484,602     411,785        8.57%
     Cash and due from banks                788,602
     Allowance for loan losses             (201,551)
     Goodwill                               568,406
     Core deposit intangibles                69,040
     Other assets                         1,433,692
         Total Assets                   $22,142,791
 
     LIABILITIES
 
     Interest-bearing deposits:
       Savings and NOW deposits          $1,753,766       8,612        1.99%
       Money market super NOW deposits    6,589,871      68,443        4.21%
       Time deposits under $100,000       1,790,988      23,744        5.38%
       Time deposits $100,000 or more     1,448,965      21,717        6.08%
       Foreign deposits                     122,620       1,069        3.54%
         Total interest-bearing
          deposits                       11,706,210     123,585        4.28%
     Borrowed funds:
       Securities sold, not
        yet purchased                       383,740       5,285        5.59%
       Federal funds purchased and
        security repurchase agreements    2,721,791      34,723        5.17%
       Commercial paper                     286,730       4,317        6.11%
       FHLB advances and other borrowings:
         less than one year                 799,570      12,431        6.31%
         over one year                      130,867       1,909        5.92%
       Long-term debt                       433,843       8,826        8.25%
         Total borrowed funds             4,756,541      67,491        5.75%
     Total interest-bearing liabilities  16,462,751     191,076        4.71%
     Noninterest-bearing deposits         3,425,509
     Other liabilities                      316,858
     Total liabilities                   20,205,118
     Minority Interest                       53,572
     Total Shareholders' equity           1,884,101
     Total liabilities and
       shareholders' equity             $22,142,791
 
 
     Spread on average interest-bearing
      funds                                                            3.86%
     Net interest income and net yield
      on interest-earning assets                       $220,709        4.59%
 
 
                                                 Three Months Ended
                                                    March 31, 2000
 
                                           Average    Amount of      Average
     (In thousands)                        Balance   Interest(1)       Rate
     ASSETS
     Money market investments            $1,381,137     $20,089        5.85%
     Securities:
       Held to maturity                   3,311,961      54,916        6.67%
       Available for sale                   741,862      10,528        5.71%
       Trading account                      592,535       8,956        6.08%
         Total securities                 4,646,358      74,400        6.44%
 
     Loans:
       Loans held for sale                  192,048       3,319        6.95%
       Net loans and leases(2)           12,704,263     285,595        9.04%
         Total loans                     12,896,311     288,914        9.01%
     Total interest-earning assets       18,923,806     383,403        8.15%
     Cash and due from banks                867,452
     Allowance for loan losses             (205,281)
     Goodwill                               581,726
     Core deposit intangibles                81,132
     Other assets                         1,160,373
         Total Assets                   $21,409,208
 
     LIABILITIES
 
     Interest-bearing deposits:
       Savings and NOW deposits          $1,776,980       9,848        2.23%
       Money market super NOW deposits    5,995,074      65,048        4.36%
       Time deposits under $100,000       1,806,986      21,622        4.81%
       Time deposits $100,000 or more     1,258,714      15,450        4.94%
       Foreign deposits                     152,547       2,024        5.34%
         Total interest-bearing
          deposits                       10,990,301     113,992        4.17%
     Borrowed funds:
       Securities sold, not yet purchased   302,415       4,775        6.35%
       Federal funds purchased and
        security repurchase agreements    3,127,424      41,923        5.39%
       Commercial paper                     310,025       4,779        6.20%
       FHLB advances and other borrowings:
         less than one year                 857,797      12,626        5.92%
         over one year                      114,681       1,638        5.74%
       Long-term debt                       452,559       8,830        7.85%
         Total borrowed funds             5,164,901      74,571        5.81%
     Total interest-bearing liabilities  16,155,202     188,563        4.69%
     Noninterest-bearing deposits         3,263,067
     Other liabilities                      291,940
     Total liabilities                   19,710,209
     Minority Interest                       39,664
     Total Shareholders' equity           1,659,335
     Total liabilities and
      shareholders' equity              $21,409,208
 
 
     Spread on average interest-bearing
      funds                                                            3.46%
     Net interest income and net yield on
      interest-earning assets                          $194,840        4.14%
 
 
      (1) Taxable-equivalent-rates used where applicable
      (2) Net of unearned income and fees, net of related costs.  Loans include
          nonaccrual and restructured loans.
 
 

SOURCE Zions Bancorporation
    SALT LAKE CITY, April 19 /PRNewswire/ -- Zions Bancorporation
 (Nasdaq:   ZION) today reported net income of $73.5 million, or $0.82 per
 diluted share for the first quarter of 2001, before merger-related charges of
 $1.6 million ($0.02 per share) and non-recurring charges related to the
 reclassification of investment securities and the related cumulative effect of
 a change in accounting principle totaling $7.2 million ($0.08 per share).
 This net income and earnings per share performance represented an increase of
 28.9% and 24.2%, respectively, in comparison with the $57.0 million, or
 $0.66 per share, for the first quarter of 2000.  Included in the first quarter
 of 2001 are net operating losses at Digital Signature Trust Company of
 $2.9 million or $0.03 per share.  During the quarter, the Company completed
 its mergers with Draper Bancorp, and its subsidiary Draper Bank & Trust, and
 Eldorado Bancshares, and its subsidiaries Antelope Valley Bank and Eldorado
 Bank.  In April, the Company acquired the Arizona branches of Pacific Century
 Bank.
     Operating cash earnings for the first quarter were $81.9 million, or
 $0.92 per diluted share, an increase of 26.4% and 22.7%, respectively, over
 the $64.8 million, or $0.75 per diluted share, earned in the same quarter last
 year.  Operating cash return on equity was 26.7% and operating cash return on
 assets was 1.55%. During the first quarter, the interest margin was 4.59%,
 compared to 4.37% in the fourth quarter of 2000.  The operating cash
 efficiency ratio was 57.5% for the first quarter compared to 56.8% for the
 previous quarter.  Operating cash earnings are earnings before amortization of
 goodwill and core deposit intangible assets, merger-related charges, and the
 cumulative effect of a change in accounting principle.  Operating cash
 performance ratios are determined as if goodwill, core deposit intangible
 assets, merger-related charges, and the cumulative effect of a change in
 accounting principle have not been recognized in the financial statements.
     "We are off to a great start for the year," remarked Harris Simmons,
 president and chief executive officer of Zions.  "Despite the economic
 headwind facing many financial institutions, we continue to have strong
 linked-quarter loan and deposit growth, a substantial expansion of our
 interest margin and stable asset quality.  Our investment gain in Star System
 also benefited our shareholders and eased the pain from the broad-based
 decline in Internet-related entities and consequent write downs in our venture
 capital portfolio.  I am also delighted to welcome our new customers,
 shareholders and employees from Antelope Valley Bank, Draper Bank, Eldorado
 Bank, and Pacific Century Bank in Arizona to one of the premier financial
 services companies in the nation."
 
     Double Digit Loan Growth
     At March 31, 2001, on-balance sheet and sold and serviced loans increased
 20.4% to $17.26 billion and deposits increased 15.5% to $16.85 billion over
 the balances reported one year ago. Excluding loans and deposits acquired
 during the past year from mergers with County Bank, Draper Bancorp and
 Eldorado Bancshares, loans increased 13.0% and deposits were up 5.3%.  For the
 quarter, taxable-equivalent net interest income increased 13.3% to
 $220.7 million compared to the first quarter of 2000.
 
     Strong Noninterest Income Growth
     Noninterest income was $111.8 million, an increase of 84.4% compared to
 the first quarter of 2000, including a gain of $50.2 million from the
 Company's investment in Star System, partially offset by valuation adjustments
 to its venture capital investments of $22.4 million.  Operating cash
 noninterest expense was up 27.9% to $191.2 million, including $14.4 million in
 non-recurring charges related to certain benefit obligations, consulting
 services, and closed business operations.
 
     Asset Quality Remains Healthy
     The ratio of nonperforming assets (NPAs) to total loans and other real
 estate owned was 0.53% at March 31, 2001 compared to 0.49% at December 31,
 2000.  Zions' ratio of NPAs to total loans continues to be well below the
 recent industry average of 0.80%.  For the quarter, net loan and lease losses
 were $6.1 million, or on an annualized basis, 0.17% of average loans.  At
 March 31, 2001, the allowance for loan losses of $221.2 million was
 approximately three times nonperforming loans of $73.3 million and 1.43% of
 total loans.
 
     Conference Call
     Zions will host a conference call to discuss these first quarter results
 at 5:00 p.m. EDT this afternoon (April 19, 2001).  Investors, analysts and
 other interested parties are invited to listen to this discussion by calling
 1-800-248-9412.  A replay of the call will be available until midnight EDT on
 Monday, April 23, 2001 by dialing 1-800-633-8284 or 858-812-6440, and entering
 passcode 18378089.
 
     About Zions Bancorporation
     Zions Bancorporation is one of the nation's premier financial services
 companies, consisting of a collection of great banks in some of the country's
 best growth markets.  Under local management teams and community identities,
 Zions operates over 400 full-service banking offices in Arizona, California,
 Colorado, Idaho, Nevada, New Mexico, Utah and Washington.  In addition, Zions
 is the only primary dealer in government securities headquartered in the
 Western U.S., and is a national leader in SBA lending, public finance advisory
 services, agricultural finance and electronic bond trading.  Through its
 subsidiary, Digital Signature Trust, the company is a leader in providing
 trusted Internet identity credentials.  Forbes magazine recently named Zions
 one of America's best big companies.  Investor information and links to
 subsidiary banks can be accessed at www.zionsbancorporation.com.
 
     Forward Looking Information
     This news release contains statements regarding the projected performance
 of Zions and its subsidiaries.  These statements constitute forward-looking
 information within the meaning of the Private Securities Litigation Reform
 Act.  Actual results of achievements may differ materially from the
 projections provided in this release since such projections involve
 significant known and unknown risks and uncertainties.  Factors that might
 cause such differences include, but are not limited to: competitive pressures
 among financial institutions increasing significantly; economic conditions,
 either nationally or locally in areas in which the Company conducts operations
 being less favorable than expected; and legislation or regulatory changes
 which adversely affect the ability of the company to conduct, or the
 accounting for, business combinations or new operations.  The Company
 disclaims any obligation to update such factors or to publicly announce the
 results of any revisions to any of the forward looking statements included
 herein to reflect future events or developments.
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      FINANCIAL HIGHLIGHTS
      (Unaudited)
 
     (In thousands, except per             Three Months Ended
      share and ratio data)                     March 31,
                                           2001          2000      % Change
     EARNINGS
     Taxable-equivalent net
      interest income                   $220,709       $194,840      13.28 %
     Net interest income                 215,837        190,992      13.01 %
     Noninterest income (3)              111,769         60,600      84.44 %
     Impairment loss First Security
      Corporation common stock (1)            --        (96,911)
     Provision for loan losses            12,772          5,248     143.37 %
     Noninterest expenses                203,399        200,312       1.54 %
     Income (loss) before income taxes   111,435        (50,879)
     Income taxes (benefit)               41,138        (21,955)
     Minority interest                    (1,604)          (432)    271.30 %
     Cumulative effect of
      adoption of FASB Stmt 133           (7,159)            --
     Net income (loss)                    64,742        (28,492)
 
     PER COMMON SHARE
     Net income (loss) (diluted)
      before cumulative effect              0.80          (0.33)
     Cumulative effect of adoption
      of FASB Stmt 133                     (0.08)            --
     Net income (loss) (diluted)            0.72          (0.33)
     Dividends                              0.20           0.29     (31.03)%
     Book value                            22.99          18.50      24.27 %
 
     SELECTED RATIOS
     Return on average assets               1.19 %        (0.54)%
     Return on average common equity       13.94 %        (6.91)%
     Efficiency ratio (3)                  61.18 %        78.42 %
     Net interest margin                    4.59 %         4.14 %
 
     OPERATING CASH EARNINGS (2) (3)
     Taxable-equivalent net
      interest income                   $220,709       $194,840      13.28 %
     Net interest income                 215,837        190,992      13.01 %
     Noninterest income                  111,769         60,600      84.44 %
     Provision for loan losses            12,772          5,248     143.37 %
     Noninterest expenses                191,245        149,479      27.94 %
     Income before income taxes          123,589         96,865      27.59 %
     Income taxes                         43,062         32,219      33.65 %
     Minority interest                    (1,404)          (115)   1120.87 %
     Net income before cumulative
      effect of adoption of
      FASB Stmt 133                       81,931         64,761      26.51 %
 
 
     PER COMMON SHARE
     Net income (diluted)                   0.92           0.75      22.67 %
     Dividends                              0.20           0.29     (31.03)%
     Book value                            14.69          10.84      35.52 %
 
     SELECTED RATIOS
     Return on average assets               1.55 %         1.26 %
     Return on average common equity       26.65 %        26.14 %
     Efficiency ratio                      57.52 %        58.52 %
     Net interest margin                    4.59 %         4.14 %
 
      (1) This investment was written down to $14.11 per common share.
      (2) Before amortization of goodwill and core deposit intangible assets,
          merger related expense and the cumulative effect of adoption of FASB
          Statement No. 133.
      (3) Excludes impairment loss on First Security Corporation common stock.
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      FINANCIAL HIGHLIGHTS (Continued)
      (Unaudited)
 
                                         Three Months Ended
     (In thousands, except per share          March 31,
      and ratio data)                    2001           2000        % Change
 
     AVERAGE BALANCES
     Total assets                    $22,142,791    $21,409,208       3.43 %
     Securities                        4,080,038      4,646,358     (12.19)%
     Net loans and leases             14,605,416     12,896,311      13.25 %
     Goodwill                            568,406        581,726      (2.29)%
     Core deposit intangibles             69,040         81,132     (14.90)%
     Total deposits                   15,131,719     14,253,368       6.16 %
     Minority Interest                    53,572         39,664      35.06 %
     Shareholders' equity              1,884,101      1,659,335      13.55 %
 
     Weighted average common and
      common-equivalent shares
      outstanding                     89,494,543     86,459,054       3.51 %
 
     AT PERIOD END
     Total assets                     23,548,179     20,996,557      12.15 %
     Securities                        3,752,402      4,333,452     (13.41)%
     Net loans and leases             15,486,688     13,124,365      18.00 %
     Sold loans being serviced (1)     1,776,139      1,217,401      45.90 %
     Allowance for loan losses           221,245        200,065      10.59 %
     Goodwill                            670,571        575,935      16.43 %
     Core deposit intangibles             92,823         80,995      14.60 %
     Total deposits                   16,845,000     14,584,776      15.50 %
     Minority Interest                    53,611         40,079      33.76 %
     Shareholders' equity              2,116,054      1,585,667      33.45 %
 
     Common shares outstanding        92,060,315     85,694,426       7.43 %
 
     Average equity to average assets       8.51 %         7.75 %
     Common dividend payout                28.51 %        43.60 % (2)
     Nonperforming assets                 82,265         77,012       6.82 %
     Loans past due 90 days or more       45,983         29,294      56.97 %
     Nonperforming assets to net loans
      and leases, other real estate
      owned and other nonperforming
      assets at March 31                    0.53 %         0.59 %
 
       (1) Amount represents the outstanding balance of loans sold and being
           serviced by the Company, excluding long-term first mortgage
           residential real estate loans.
       (2) Before impairment loss on First Security Corporation common stock.
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED BALANCE SHEETS
      (Unaudited)
 
     (In thousands, except            March 31,     December 31,   March 31,
      share amounts)                    2001            2000         2000
 
     ASSETS
     Cash and due from banks         $1,061,125      $1,047,252     $929,763
     Money market investments:
       Interest-bearing deposits          1,068          21,237       18,019
       Federal funds sold               329,028          50,426      185,937
       Security resell agreements       706,106         456,404      582,730
     Investment securities:
       Held to maturity, at cost
        (approximate market value
         $51,559, $3,152,740,
          and $3,251,145)                51,559       3,125,433    3,294,839
       Available for sale, at market
        (includes $143,341 at March 31,
        2001 and $151,424 at December
        31, 2000 pledged to
        creditors)                    3,374,519         782,466      641,846
       Trading account, at market
        (includes $232,811 at
        March 31, 2001 and $15,096
        at December 31, 2000 pledged
        to creditors)                   326,324         280,410      396,767
                                      3,752,402       4,188,309    4,333,452
     Loans:
       Loans held for sale              210,654         181,159      179,332
       Loans, leases and other
        receivables                  15,359,827      14,276,999   13,003,980
                                     15,570,481      14,458,158   13,183,312
     Less:
       Unearned income and fees,
        net of related costs             83,793          80,125       58,947
       Allowance for loan losses        221,245         195,535      200,065
         Net loans                   15,265,443      14,182,498   12,924,300
 
     Premises and equipment, net        338,048         314,938      290,752
     Goodwill                           670,571         571,365      575,935
     Core deposit intangibles            92,823          70,075       80,995
     Other real estate owned              8,963           9,574        7,508
     Other assets                     1,322,602       1,027,365    1,067,166
                                    $23,548,179     $21,939,443  $20,996,557
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Deposits:
       Noninterest-bearing demand    $4,140,122      $3,585,672   $3,426,885
       Interest-bearing:
        Savings and money market      8,945,391       8,270,122    7,982,643
        Time under $100,000           1,890,130       1,628,890    1,748,093
        Time over $100,000            1,774,215       1,448,905    1,283,157
        Foreign                          95,142         136,394      143,998
                                     16,845,000      15,069,983   14,584,776
 
     Securities sold, not
      yet purchased                     233,758         291,102      257,605
     Federal funds purchased            686,785       1,069,124      952,471
     Security repurchase agreements   1,587,643       1,327,721    1,481,892
     Accrued liabilities                678,442         310,287      399,027
     Commercial paper                   296,154         198,239      305,618
     Federal Home Loan Bank advances
      and other borrowings:
       Less than one year               438,228       1,290,960      801,574
       Over one year                    151,161         143,776      150,201
     Long-term debt                     461,343         419,550      437,647
         Total liabilities           21,378,514      20,120,742   19,370,811
 
     Minority interest                   53,611          39,857       40,079
 
     Shareholders' equity:
       Capital stock:
        Preferred stock, without
         par value; authorized
         3,000,000 shares; issued
         and outstanding, none               --              --           --
        Common stock, without par
         value; authorized
         200,000,000 shares; issued
         and outstanding 92,060,315,
         87,100,188, and
         85,694,426 shares            1,111,202         907,604      888,725
     Accumulated other
      comprehensive income (loss)        57,985          (3,644)     (25,500)
     Retained earnings                  946,867         874,884      722,442
         Total shareholders' equity   2,116,054       1,778,844    1,585,667
                                    $23,548,179     $21,939,443  $20,996,557
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED STATEMENTS OF OPERATIONS
      (Unaudited)
                                                         Three Months Ended
     (In thousands, except per share amounts)                March 31,
                                                       2001           2000
     Interest income:
       Interest and fees on loans                    $321,572       $280,384
       Interest on loans held for sale                  3,084          3,319
       Lease financing                                  5,020          4,212
       Interest on money market investments            10,214         20,089
       Interest on securities:
         Held to maturity - taxable                       985         48,742
         Held to maturity - nontaxable                     --          4,013
         Available for sale - taxable                  48,976          8,562
         Available for sale - nontaxable                6,064          1,278
         Trading account                               10,998          8,956
         Total interest income                        406,913        379,555
 
     Interest expense:
       Interest on savings and money market deposits   77,055         74,896
       Interest on time and foreign deposits           46,530         39,096
       Interest on borrowed funds                      67,491         74,571
         Total interest expense                       191,076        188,563
 
         Net interest income                          215,837        190,992
     Provision for loan losses                         12,772          5,248
         Net interest income after provision
          for loan losses                             203,065        185,744
 
     Noninterest income:
       Service charges on deposit accounts             22,080         19,049
       Other service charges, commissions and fees     18,262         15,839
       Trust income                                     4,775          4,487
       Investment securities gains (losses), net       (8,882)         1,135
       Impairment loss on First Security
        Corporation stock                                  --        (96,911)
       Underwriting and trading income                  5,637          3,347
       Loan sales and servicing income                 19,595          9,824
       Other                                           50,302          6,919
         Total noninterest income                     111,769        (36,311)
 
     Noninterest expense:
       Salaries and employee benefits                 107,115         81,137
       Occupancy, net                                  14,567         12,219
       Furniture and equipment                         14,256         12,768
       Other real estate expense                          182            299
       Legal and professional services                  7,615          4,990
       Supplies                                         2,919          2,506
       Postage                                          3,108          3,042
       Advertising                                      5,869          4,564
       Merger related expense                           2,537         41,543
       FDIC premiums                                      735            867
       Amortization of goodwill                         7,051          6,414
       Amortization of core deposit intangibles         2,566          2,876
       Other                                           34,879         27,087
         Total noninterest expense                    203,399        200,312
 
         Income (loss) before income taxes (benefit)  111,435        (50,879)
     Income taxes (benefit)                            41,138        (21,955)
         Income (loss) before minority interest
          and cumulative effect of change
          in accounting principle                      70,297        (28,924)
     Minority interest                                 (1,604)          (432)
         Income (loss) before cumulative effect
          of change in accounting principle            71,901        (28,492)
     Cumulative effect of change in accounting
      principle, adoption of FASB Statement No. 133,
      net of income tax benefit of $4,521              (7,159)            --
         Net income (loss)                            $64,742       $(28,492)
 
     Weighted average common and common equivalent
      shares outstanding during the period
         Basic                                         88,247         85,642
         Diluted                                       89,495         86,459
 
     Net income (loss) per common share:
       Income (loss) before cumulative effect of
        change in accounting principle:
         Basic                                          $0.81         $(0.33)
         Diluted                                         0.80          (0.33)
       Cumulative effect of change in accounting
        principle, adoption of FASB Statement No. 133:
         Basic                                          (0.08)            --
         Diluted                                        (0.08)            --
       Net income (loss):
         Basic                                          $0.73         $(0.33)
         Diluted                                         0.72          (0.33)
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
       AND COMPREHENSIVE INCOME (LOSS)
      (Unaudited)
                            Three Months Ended March 31, 2001
                       Accumulated Other Comprehensive
                                Income (Loss)
 
                                        Net
                     Net Unrealized Unrealized
                      Gains (Losses) Gains on                           Total
               Common     on       Derivative          Retained Shareholders'
                Stock  Investments Instruments Subtotal Earnings        Equity
     (In
      thousands)
 
     Balance,
      January 1,
      2001      $907,604  $(3,644)            $(3,644)   $874,884  $1,778,844
     Comprehensive
      income:
      Net income
       for the
       period                                              64,742      64,742
      Other
       comprehensive
       income:
       Net realized
        and
        unrealized
        holding
        gains during
        the period,
        net of tax
        expense of
        $6,536              10,551              10,551
       Reclassification
        for net
        realized losses
        recorded in
        operations, net
        of tax benefit
        of $3,398            5,484               5,484
       Change in net
        unrealized
        gains on
        derivative
        instruments, net
        of tax expense
        of $6,857                     11,069    11,069
       Cumulative effect
        of change in
        accounting
        principle,
        adoption of
        FASB Statement
        No. 133, net of
        income tax
        expense of
        $21,245             13,259    21,266    34,525
       Other
        comprehensive
        income              29,294    32,335    61,629                 61,629
      Total
       comprehensive
       income                                                         126,371
     Cash dividends
      --common, $.20
      per share                                           (18,458)    (18,458)
     Issuance of common
      shares for
      acquisitions199,680                                  25,699     225,379
     Stock options
      exercised, net of
      shares tendered
      and retired   3,918                                               3,918
 
     Balance,
      March 31,
      2001     $1,111,202  $25,650   $32,335   $57,985   $946,867  $2,116,054
 
 
                            Three Months Ended March 31, 2000
                       Accumulated Other Comprehensive
                                Income (Loss)
 
                        Net Unrealized
                        Gains (Losses)                                  Total
                 Common     on                         Retained Shareholders'
                  Stock  Investments           Subtotal Earnings        Equity
     (In
      thousands)
 
     Balance,
      January
      1, 2000    $888,231  $(4,158)            $(4,158)  $775,765  $1,659,838
     Comprehensive
      loss:
      Net loss for
       the period                                         (28,492)    (28,492)
      Other
       comprehensive
       income (loss):
       Net realized and
        unrealized
        holding
        losses during
        the period, net
        of tax benefit
        of $49,854         (80,484)            (80,484)
       Reclassification
        for net realized
        losses recorded
        in operations,
        net of tax
        benefit
        of $36,634          59,142              59,142
       Other
        comprehensive
        loss               (21,342)            (21,342)               (21,342)
      Total
       comprehensive
       loss                                                           (49,834)
     Cash dividends
      -- common, $.29
      per share                                           (24,831)    (24,831)
     Stock redeemed
      and retired (3,812)                                              (3,812)
     Stock options
      exercised, net
      of shares
      tendered and
      retired       4,306                                               4,306
     Balance,
      March 31,
      2000       $888,725  $(25,500)          $(25,500)  $722,442  $1,585,667
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      Sold Loans Being Serviced*
      (Unaudited)
                                    Three Months       Year      Three Months
                                        Ended          Ended         Ended
                                       March 31,    December 31,   March 31,
     (In thousands)                      2001           2000         2000
 
     Balance at beginning of period   $1,750,408     $1,252,791   $1,252,791
     Add:
       New loans sold                    209,959      1,141,279      130,997
     Deduct:
       Payments and other reductions    (184,228)      (643,662)    (166,387)
     Balance at end of period         $1,776,139     $1,750,408   $1,217,401
 
     * Amount represents the outstanding balance of loans and receivables sold
     and being serviced by the company, excluding long-term first mortgage
     residential real estate loans.
 
     Nonperforming Assets
     (Unaudited)
 
                                        March 31,     December 31,  March 31,
     (In thousands)                        2001           2000         2000
 
     Nonaccrual loans                    $70,665        $57,800      $68,684
     Restructured loans                    2,637          3,174          820
     Other real estate owned and other
      nonperforming assets                 8,963          9,574        7,508
     Total                               $82,265        $70,548      $77,012
     % of Net loans and leases*, other
      real estate owned and other
      nonperforming assets                  0.53%          0.49%        0.59%
 
     Accruing loans past due
      90 days or more                    $45,983        $27,458      $29,294
 
     % of Net loans and leases*             0.30%          0.19%        0.22%
 
     *Includes loans held for sale.
 
     Allowance for Loan Losses
     (Unaudited)
                                      Three Months       Year    Three Months
                                         Ended          Ended         Ended
                                        March 31,     December 31, March 31,
     (In thousands)                        2001          2000          2000
 
     Balance at beginning of period     $195,535       $204,114     $204,114
     Allowance for loan losses of
      companies acquired                  19,072          1,961
     Add:
      Provision for losses                12,772         31,811        5,248
     Deduct:
      Loan and lease charge-offs          (9,210)       (52,641)     (11,289)
      Recoveries                           3,076         10,290        1,992
        Net loan and lease charge-offs    (6,134)       (42,351)      (9,297)
     Balance at end of period           $221,245       $195,535     $200,065
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      LOAN BALANCES BY PORTFOLIO TYPE
      (Unaudited)
 
      (In millions)
                                         March 31,     December 31,  March 31,
                                            2001           2000        2000
     Types
     Loans held for sale                    $211           $181         $179
     Commercial, financial,
      and agricultural                     3,818          3,615        3,045
     Real estate:                                                         --
       Construction                        2,463          2,273        1,877
       Other:                                                             --
         Home equity credit line             305            263          227
         1-4 family residential            2,933          2,911        2,798
         Other real estate-secured         4,679          4,190        4,100
                                           7,917          7,364        7,125
                                          10,380          9,637        9,002
 
       Consumer:
         Bankcard                            106            135          114
         Other                               616            472          476
                                             722            607          590
 
     Lease financing                         360            317          273
     Foreign Loans                            27             26           42
     Other receivables                        52             75           52
         Total loans                     $15,570        $14,458      $13,183
 
 
      ZIONS BANCORPORATION AND SUBSIDIARIES
      CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
      (Unaudited)
                                                   Three Months Ended
                                                      March 31, 2001
                                           Average    Amount of       Average
     (In thousands)                        Balance    Interest(1)      Rate
     ASSETS
     Money market investments              $799,148     $10,214        5.18%
     Securities:
       Held to maturity                      51,975         985        7.69%
       Available for sale                 3,294,006      58,305        7.18%
       Trading account                      734,057      10,998        6.08%
         Total securities                 4,080,038      70,288        6.99%
 
     Loans:
       Loans held for sale                  180,054       3,084        6.95%
       Net loans and leases(2)           14,425,362     328,199        9.23%
         Total loans                     14,605,416     331,283        9.20%
     Total interest-earning assets       19,484,602     411,785        8.57%
     Cash and due from banks                788,602
     Allowance for loan losses             (201,551)
     Goodwill                               568,406
     Core deposit intangibles                69,040
     Other assets                         1,433,692
         Total Assets                   $22,142,791
 
     LIABILITIES
 
     Interest-bearing deposits:
       Savings and NOW deposits          $1,753,766       8,612        1.99%
       Money market super NOW deposits    6,589,871      68,443        4.21%
       Time deposits under $100,000       1,790,988      23,744        5.38%
       Time deposits $100,000 or more     1,448,965      21,717        6.08%
       Foreign deposits                     122,620       1,069        3.54%
         Total interest-bearing
          deposits                       11,706,210     123,585        4.28%
     Borrowed funds:
       Securities sold, not
        yet purchased                       383,740       5,285        5.59%
       Federal funds purchased and
        security repurchase agreements    2,721,791      34,723        5.17%
       Commercial paper                     286,730       4,317        6.11%
       FHLB advances and other borrowings:
         less than one year                 799,570      12,431        6.31%
         over one year                      130,867       1,909        5.92%
       Long-term debt                       433,843       8,826        8.25%
         Total borrowed funds             4,756,541      67,491        5.75%
     Total interest-bearing liabilities  16,462,751     191,076        4.71%
     Noninterest-bearing deposits         3,425,509
     Other liabilities                      316,858
     Total liabilities                   20,205,118
     Minority Interest                       53,572
     Total Shareholders' equity           1,884,101
     Total liabilities and
       shareholders' equity             $22,142,791
 
 
     Spread on average interest-bearing
      funds                                                            3.86%
     Net interest income and net yield
      on interest-earning assets                       $220,709        4.59%
 
 
                                                 Three Months Ended
                                                    March 31, 2000
 
                                           Average    Amount of      Average
     (In thousands)                        Balance   Interest(1)       Rate
     ASSETS
     Money market investments            $1,381,137     $20,089        5.85%
     Securities:
       Held to maturity                   3,311,961      54,916        6.67%
       Available for sale                   741,862      10,528        5.71%
       Trading account                      592,535       8,956        6.08%
         Total securities                 4,646,358      74,400        6.44%
 
     Loans:
       Loans held for sale                  192,048       3,319        6.95%
       Net loans and leases(2)           12,704,263     285,595        9.04%
         Total loans                     12,896,311     288,914        9.01%
     Total interest-earning assets       18,923,806     383,403        8.15%
     Cash and due from banks                867,452
     Allowance for loan losses             (205,281)
     Goodwill                               581,726
     Core deposit intangibles                81,132
     Other assets                         1,160,373
         Total Assets                   $21,409,208
 
     LIABILITIES
 
     Interest-bearing deposits:
       Savings and NOW deposits          $1,776,980       9,848        2.23%
       Money market super NOW deposits    5,995,074      65,048        4.36%
       Time deposits under $100,000       1,806,986      21,622        4.81%
       Time deposits $100,000 or more     1,258,714      15,450        4.94%
       Foreign deposits                     152,547       2,024        5.34%
         Total interest-bearing
          deposits                       10,990,301     113,992        4.17%
     Borrowed funds:
       Securities sold, not yet purchased   302,415       4,775        6.35%
       Federal funds purchased and
        security repurchase agreements    3,127,424      41,923        5.39%
       Commercial paper                     310,025       4,779        6.20%
       FHLB advances and other borrowings:
         less than one year                 857,797      12,626        5.92%
         over one year                      114,681       1,638        5.74%
       Long-term debt                       452,559       8,830        7.85%
         Total borrowed funds             5,164,901      74,571        5.81%
     Total interest-bearing liabilities  16,155,202     188,563        4.69%
     Noninterest-bearing deposits         3,263,067
     Other liabilities                      291,940
     Total liabilities                   19,710,209
     Minority Interest                       39,664
     Total Shareholders' equity           1,659,335
     Total liabilities and
      shareholders' equity              $21,409,208
 
 
     Spread on average interest-bearing
      funds                                                            3.46%
     Net interest income and net yield on
      interest-earning assets                          $194,840        4.14%
 
 
      (1) Taxable-equivalent-rates used where applicable
      (2) Net of unearned income and fees, net of related costs.  Loans include
          nonaccrual and restructured loans.
 
 SOURCE  Zions Bancorporation

RELATED LINKS

http://www.zionsbank.com