Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — Goldman Sachs Investor Conference 2001
33 slides from Zions Bancorporation N.a's conference presentation, Dec 4, 2001
Slide 1: Creating Value
Z IO N S BA N C O R PO R A TIO N Creating Value Goldman Sachs Investor Conference December 4, 2001
Slide 2: Delivering Value to Shareholders
Delivering Value to Shareholders Value of $1,000 Investment Last Ten Years Last Five Years 1990 - 2000 1995 - 2000 $26,000 $8,000 $7,000 $21,000 $6,000 $7,028 $21,213 $16,000 $5,000 $11,000 $4,000 $3,000 $6,000 $3,474 $2,000 $5,232 $1,000 $1,000 S&P 500 ZION S&P 500 ZION Zions was #1 in total shareh
Slide 3: Simple Price Appreciation
Simple Price Appreciation $260 ZION Stock $240 S&P 500 S&P Banks Index $220 ZION $206 $200 $180 $160 $140 SPX $141 SPBNKC $134 $120 $100 6 7 8 9 0 97 98 99 00 01 97 98 99 00 01 7 8 9 0 1 -9 -9 -9 -9 -0 -9 -9 -9 -0 -0 n- n- n- n- n- p- p- p- p- p- ec ec ec ec ec ar ar ar ar ar Ju Ju Ju Ju Ju Se Se Se
Slide 4: Demonstrated Superior Growth
Demonstrated Superior Growth Revenue Per Share Cash Earnings Per Share 15 t h ow Gr 4 th w n d 13 ro ou G p u nd 3 om C 11 po 5% m . Co 17 % 2 .9 9 17 1 7 5 0 1996 1997 1998 1999 2000 3Q '01* 1996 1997 1998 1999 2000 3Q'01* $6.37 $7.57 $9.55 $11.31 $12.57 $14.51 $1.73 $2.04 $2.43 $2.98 $3.49 $3.88 *
Slide 5: Success Factors
Success Factors • Community Banking Strategy • Geography • Technology • National Niche Businesses • Focus on Fundamentals • Shareholder Driven #1 in total shareholder return for U.S. banks in the 90’s 4 December 4, 2001
Slide 6: A Collection of Great Community Banks
A Collection of Great Community Banks • Local names and identities • Local boards - including regional advisory boards • Local management teams with real authority 5 December 4, 2001
Slide 7: A Collection of Great Community Banks
A Collection of Great Community Banks WA Deposits: $0.4B Rank: 12th Deposits: $2.1B Rank: 3rd ID Deposits: $5.0B Rank: 2nd / 9th Deposits: $6.9B NV Rank: 6th UT CA CO AZ Deposits: $1.4B NM Rank: 5th Deposits: $2.2B Rank: 4th 6 December 4, 2001
Slide 8: Balance Sheet Composition
Balance Sheet Composition September 30, 2001 Washington Washington 1% Deposits 2% California Colorado Colorado 29% 8% California 8% Arizona 39% Arizona 9% 12% Nevada 7% Utah/Idaho Nevada Utah/Idaho 46% 28% 11% Total Loans: $18.8 Billion* Total Deposits: $18.1 Billion *Includes $2.3 Billion in Loans
Slide 9: Value of Community Banking Structure
Value of Community Banking Structure Better Talent Better Revenue Growth Better Asset Quality Stro n g er C u stom er R elatio n sh ips 8 December 4, 2001
Slide 10: Zions' Growth Engine: Projected Population Growth to 2005
Zions’ Growth Engine: Projected Population Growth to 2005 Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S Top Third Growth States Middle Third Growth States Bottom Third Growth States Source: U.S. Census Bureau 9 December 4, 2001
Slide 11: Zions' Growth Engine: Employment Growth Rates to 2008
Zions’ Growth Engine: Employment Growth Rates to 2008 Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S Z IO N S United States Z IO N S by Percent Employment Change 20% to 50% 16% to 20% 13% to 16% 9% to 13% NA Source: Bureau of Labor Statistics 10 December 4, 2001
Slide 12: Markets Matter: Top Growth Markets
Markets Matter: Top 10 Growth Markets 1. Phoenix-Mesa, AZ 2. Dallas, TX 3. San Antonio, TX 4. Denver, CO 5 of top 10 5. Atlanta, GA 6. Salt Lake City-Ogden, UT 10 of top 22 7. Oakland, CA 8. Austin-San Marcos, TX 9. San Diego, CA None below 47 10.Houston, TX Source: Putnam Lovell; Top 100 MSAs Ranke
Slide 13: Markets Matter: Best Places For Business
Markets Matter: 15 Best Places For Business 1. San Jose, CA 2. Austin, TX 3. San Francisco, CA 4. Boulder, CO 5. Dallas, TX 6. Santa Rosa, CA 7. Boise, ID 8. San Diego, CA 9. Phoenix, AZ 11 of top 15 10. Oakland, CA 11. Sacramento, CA 12. Orange County, CA 13. Raleigh-Durham, NC 14. Las Vegas, NV So
Slide 14: The Growth Combination
The Growth Combination The Right Banks in the Right Places High Growth Markets cts spe o Pr wth o Gr Low Growth Markets Larger Banks Community Banks 13 December 4, 2001
Slide 15: Market Growth Opportunities
Market Growth Opportunities ($ in Billions) Deposits Market Share California $6.9 2% Utah $4.8 28% Arizona $2.2 4% Nevada $2.1 12% Colorado $1.4 3% Washington $0.4 1% Idaho $0.2 2% 14 December 4, 2001
Slide 16: Ensuring Our Future Success
Ensuring Our Future Success Integrating Key Technologies • – Expertise in complex electronic work flow solutions with established customer base – Creating electronic, Internet-based forms – Digital signing software • – Secure storage and retrieval of electronic documents • – Issuing and managing dig
Slide 17: Check image transmission
• Transmitting check images for presentment – Reduces transportation costs – Reduces float • Zions developed process and owns intellectual property • Licensed to EDS 16 December 4, 2001
Slide 18: Why is a Bank in the Digital Signature Business?
Why is a Bank in the Digital Signature Business? “We’re more like banks than we are Internet companies,” Sclavos says. If e-commerce is really going to take off, having a banker control the keys to the vault door may not be such a bad thing. Business Week May 15, 2000 Quoting Stratton Sclavos, CEO o
Slide 19: National Niche Businesses
National Niche Businesses • #1 SBA 504 Lender • #8 SBA 7(a) Lender • #1 Farmer Mac Lender • #6 Municipal Financial Advisor • Electronic Bond Trading • e-Business Solutions 18 December 4, 2001
Slide 20: Focusing on the Fundamentals
Focusing on the Fundamentals Effective Effective Cost Sales Control 17.9% 57.4% Operating Compound Revenue Cash Efficiency Growth over 5 years Ratio Superior Asset Quality .65% NPA ratio at 9/30/01 19 December 4, 2001
Slide 21: Asset Quality: Understanding the Loan Portfolio
Asset Quality: Understanding the Loan Portfolio Commercial RE Term Consumer Loans 16% (Includes $2.6B Consumer Residential) 22% Commercial RE $3.7B Construction 17% $2.8B Commercial Loans (Includes Owner-Occupied Real Estate) 45% $7.6B 20 December 4, 2001
Slide 22: Distribution by Product Type
Distribution by Product Type 09/30/01 Commercial Term Loans by Product Type Construction Loans by Product Type Industrial 4% Other Industrial Office Residential A&D 15% 14% 10% 20% Recreation 3% Medical 3% Retail A&D 16% 3% Office 23% Hotel/Motel 4% Hotel/Motel 21% A&D Single Family 5% 27% Other Apa
Slide 23: Distribution by Geographic Location
Distribution by Geographic Location 09/30/01 Commercial Term Loans by Collateral Location Commercial Construction Loans by Location Other/Multiple Mkt Other/Multiple Mkt 8% 12% Washington Southern CA Washington Southern CA 5% 22% 2% 26% Colorado 9% Colorado 15% Northern CA 7% Arizona 17% Northern CA
Slide 24: Net Charge-Off Trends vs. Peers
Net Charge-Off Trends vs. Peers YTD Net Losses as % of Average Total Loans 0.60% Zions Peers 0.50% Percent Of Average Total Loans 0.40% 0.30% 0.20% 0.10% 0.00% 2nd Qtr 99 3rd Qtr 99 4th Qtr 99 1st Qtr 00 2nd Qtr 00 3rd Qtr 00 4th Qtr 00 1st Qtr 01 2nd Qtr 01 3rd Qtr 01 N ote: Peer group is defined a
Slide 25: Asset Quality Trends vs. Peers
Asset Quality Trends vs. Peers Non-Performing Assets as % of Total Assets 0.60% Zions Peers 0.50% Percent of Total Assets 0.40% 0.30% 0.20% 0.10% 0.00% 2nd Qtr 99 3rd Qtr 99 4th Qtr 99 1st Qtr 00 2nd Qtr 00 3rd Qtr 00 4th Qtr 00 1st Qtr 01 2nd Qtr 01 3rd Qtr 01 N ote: Peer group is defined as bank h
Slide 26: Syndicated Credits
Syndicated Credits Old Sumitomo Portfolio 1,082,765 $1,200,000 • CB&T NCOs from 10/98: $1,000,000 –$50.7MM $800,000 $600,000 • NCOs on Sumitomo Syndicated Credits: $400,000 130,479 –$18.4MM $200,000 $0 Oct '98 Sep '01 25 December 4, 2001
Slide 27: Allowance for Loan Losses to Non-Performing Loans
Allowance for Loan Losses to Non-Performing Loans 9/30/01 Rank Company ALLL/NPL Rank Company ALLL/NPL 1 State Street Corp 5500.0% 18 FirstMerit 201.2% 2 North Fork Bancorp. 840.2% 19 PNC Financial 199.4% 3 Westamerica Corp. 616.8% 20 BancWest Corp 181.4% 4 First Virginia Corp. 437.7% 21 Mellon Bank
Slide 28: Alignment of Shareholder and Employee Interests: Staff Ownership
Alignment of Shareholder and Employee Interests: Staff Ownership We act like shareholders... • Stock value held by execs to 2000 compensation: 40X • Percent of employees who own shares: 80% • Percent of employees receiving options*: 100% • Percent owned by employees & directors: 12% * All employees
Slide 29: Alignment of Shareholder and Employee Interests: Incentive Compensation
Alignment of Shareholder and Employee Interests: Incentive Compensation 4 Year Average Tangible ROE 16% 18% 20% 22% 24% 4 Year Average Cash EPS Growth Rate 25% 150% 180% 200% 230% 250% 21% 130% 155% 170% 200% 220% 17% 80% 100% 110% 120% 140% 13% 40% 46% 50% 59% 60% 9% 12% 15% 16% 19% 20% Average Ann
Slide 30: Earnings Guidance
Earnings Guidance 4th Qtr. 2001 2002 Operating Cash Earnings $0.94 - 0.96 $4.05 - 4.10 Goodwill (0.09) (0.36) CDI (0.03) (0.15) GAAP EPS 0.81 - 0.83 3.54 - 3.59 “New” GAAP EPS $0.90 - 0.92 $3.90 - 3.95 29 December 4, 2001
Slide 31: Comparative Currency Valuations
Comparative Currency Valuations November 28, 2001 IBES 5-Year 2002 P/E 2002 PEG Company Stock Price Growth Estimate Ratio Ratio Northern Trust $57.32 12.90% 23.9X 185% State Street $52.85 14.08% 24.1X 171% Fifth Third $59.32 14.29% 21.7X 152% Marshall & Ilsley $61. 82 10.25% 15.6X 152% M&T Bank $71.
Slide 32: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements regarding the projected performance of Zions Bancorporation. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results or achievements may differ material
Slide 33: Zions Bancorporation
THE COMMERCE BANK OF WASHINGTON Z IO N S B A N K Z IO N S BA N C O R P O R A TIO N © 2001, Z ions Bancorporation 32 December 4, 2001
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