Zions Bancorporation is a bank and financial holding firm established in 1955 under the laws of the State of Utah, US. The Company is registered under the Bank Holding Company Act. Zion is headquartered in Salt Lake City, Utah, US. The Company and its subsidiaries control and operate eight banks. These banks have approximately 470 branch offices and 578 Automatic Teller Machines as of December 31, 2006. The Company through its subsidiaries offers a comprehensive range of financials and banking services in ten Western and Southwestern US states, mainly in Utah, Arizona, California, Texas, Nevada, Idaho, Colorado, Oregon, Washington and New Mexico.
The Company had assets of approximately $14.8 billion, deposits of approximately $10.5 billion and loans of approximately $10.7 billion as of December 31, 2006. Zion is the 22nd largest bank in terms of deposits in the United States. The Company’s common stock is listed and traded on the NASDAQ Stock Market under the ticker “ZION”. The Company employs more than 10,600 full-time employees.
The Company aims to be in community focused banking activities that include core services such as:
• Corporate, small and mid-sized business banking
• Residential and Commercial construction and development lending
• Retail banking
• Treasury and cash management services and products
• Residential mortgage
• Investment activities
Additionally, the firm has developed specialized businesses in public finance, capital markets, and financial technologies. The Company through its subsidiary is a leader in SBA (Small Business Administration) lending in US.
The Company also owns equity interest in Farmer Mac (the Federal Agricultural Mortgage Corporation) and is the country’s leading originator of agricultural real estate mortgage loans in the secondary market. Zion is also a leader in underwriting and municipal finance advisory services. The Company operates four venture capital funds providing early-stage financing mainly for start-up firms based in the Western part of US. Zion also provides check imaging and clearing software through NetDeposit, Inc. and offers web-based cash management services and medical claims tracking through P5, Inc.
The Company’s net interest income increased 15.8% to $472 million in 2006 from $408 million in 2005. The Company’s non interest and other income declined 2.0% to $264 million in 2006 compared with $269 million in 2005. Zions Bancorp’s non interest expense increased 8.9% to $426 million in 2006 compared with $329 million in 2005. The Company’s efficiency ratio (non interest expense to total income ratio) deteriorated to 57.15% in 2006 from 56.95% in 2005. The Company’s net interest margin increased to 3.89% in 2006 from 3.68% in 2005. Zions Bancorp’s net income increased 10.2% to $192 million in 2006 from $174 million in 2005. The Company’s total assets increased 17.2% to $14.8 billion as of December 31, 2006 compared with $12.7 billion as of December 31, 2005. During the same period, Zions Bancorp’s net loans increased 25.8% to $10.7 billion as of December 31, 2006 compared with $8.5 billion as of December 31, 2005. The Company’s total deposit grew 13.4% to $10.5 billion as of December 31, 2006 compared with $9.2 billion as of December 31, 2005. The Company’s total shareholder’s equity increased 16.3% to $0.97 billion as of December 31, 2006 from $0.84 billion as of December 31, 2005.
The Company has organized itself into two operating business segment: Banking operations and Others.
Banking operations are carried through its eight banking subsidiaries: The Commerce Bank of Washington, The Commerce Bank of Oregon, Vectra Bank Colorado, Nevada State Bank, National Bank of Arizona, Amegy Corporation, California Bank & Trust, Zions Bank and Subsidiaries. Others segment includes Specialty Financial Services and Technology Businesses.
Banking Businesses: The Company operates eight banks each operating under a separate name and having its own CEO, management team and board of directors. Individual banks have full freedom to identify their own growth and focus areas; and to make the customer related decision making locally. The Company, however, has kept the technology and operations centralized to gain from economies of scale.
These banks offer a broad range of retail and commercial banking services, mortgage loans as well as a range of personal banking products and services to clients such as trust services, safe deposit facilities, direct deposit, bankcard, student and personal loans, home equity lines of credit and 24-hour access to ATMs. The segment also offers wealth management services through Contango Capital Advisors, Inc. launched in 2004.
Zion Bancorp aims to grow both internally as well as through a series of selective acquisitions. In past the Company has completed several acquisitions including Amegy Bank based in Texas in 2005 and The Stockmen’s Bancorp, Inc. based in Arizona in September 2006.
Specialty Financial Services and Technology Businesses: The segment operates a variety of specialized businesses nationally. These include SBA 7(a) lending, SBA 504 lending, underwriting and public finance advisory services, cash management and software services pertaining to the electronic checks imaging, and farm mortgage origination through Farmer Mac. These businesses are conducted through following initiatives:
• National Real Estate Lending
• NetDeposit and Related Services
• Treasury Management
• Wealth Management