Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — Lehman Brothers conference, New York City, September 2003
23 slides from Zions Bancorporation N.a's conference presentation, Sep 11, 2003
Slide 1: Lehman Brothers 8 Sep 2003 New York City
Lehman Brothers 8 Sep 2003 New York City
Slide 2: The Intermountain West's Largest Banking Company
The Intermountain West’s Largest Banking Company • Total Assets of $28 Billion • 28th Largest Domestic Bank by Deposits • S&P 500 Index • NASDAQ Financial 100 Index • 400+ Offices and 550+ ATMs in 8 States
Slide 3: National Rankings
National Rankings • #1 Originator of SBA 504 Loans • #1 Originator of Agricultural Mortgages Sold in Secondary Market • #2 Electronic Odd-Lot Bond Trader • Seventh Largest SBA 7(a) Lender • Eighth Most “Small Business Friendly” Bank (per SBA) • Ninth Largest Municipal Finance Advisor
Slide 4: A Collection of Great Community Banks
A Collection of Assets: $0.6 Great Community Banks Assets : $2.8 Assets : $11.2 Assets : $2.7 Assets : $8.7 Assets : $2.9 Assets in Billions as of Q2-2003
Slide 5: Revenue By Geographic Source
Revenue By Geographic Source Washington Utah/Idaho 2% 38% Colorado 9% Arizona 10% Nevada 10% California Revenue 06/30/03 YTD 31%
Slide 6: Advantages of Community Banking Structure
Advantages of Community Banking Structure • Better Talent • Flexibility to Address Market Opportunities • Strong Customer Relationships
Slide 7: The Right States
The Right States Projected Population Growth to 2015 ZIONS ZIONS ZIONS ZIONS ZIONS ZIONS ZIONS ZIONS Top Third Growth States Middle Third Growth States Bottom Third Growth States Source: U.S. Census Bureau
Slide 8: A Strategy That Drives Revenue
A Strategy That Drives Revenue REVENUES (AS REPORTED) 1600 1400 1200 G R CA 1000 19% 800 600 400 200 0 * 93 94 95 96 97 98 99 00 01 02 03 19 19 19 19 19 19 19 20 20 20 20 *First half annualized
Slide 9: Recent Commitments and Achievements
Recent Commitments and Achievements PDeal with under performing businesses PReduce annual run rate of expenses $50 million Strengthen Colorado Franchise
Slide 10: Core Engine Improves
Core Engine Improves EPS $1.03 $1.02 $1.02 • Gradually improving $1.01 economic conditions $1.00 $0.99 • Stable NIM $0.98 $0.97 • Expense $0.97 $0.96 $0.96 management $0.95 • Stable credit quality $0.94 $0.93 4Q02 1Q03 2Q03
Slide 11: Major Markets Stable to Improving
Major Markets Stable to Improving • Utah/Idaho stable to improving economy • Southern California strong • Southern Nevada strong • Arizona strong and improving • Colorado stable but slow
Slide 12: A Stable Net Interest Margin in a Volatile Environment
A Stable Net Interest Margin in a Volatile Environment 7.00% 6.00% 5.81% 5.00% 4.74% 4.56% 4.58% 4.64% 4.56% 4.52% 4.31% 4.27% 4.00% 3.59% 3.00% 2.00% 1.55% 1.25% 1.00% 0.00% 1998 1999 2000 2001 2002 First Half-03 Net Interest Margin Average Fed Funds Rate
Slide 13: Managing Credit Risk
Managing Credit Risk • Central credit policy & exam • Local credit decisions • Relationship banking • Strong cash flow underwriting + collateral
Slide 14: Strong Asset Quality Relative to Peers
Strong Asset Quality Relative to Peers Non-Performing Assets as % of Total Assets 0.70% ZIONS Peers 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr 99 99 99 00 00 00 00 0
Slide 15: Strong Asset Quality Relative to Peers
Strong Asset Quality Relative to Peers YTD Net Losses as % of Average Total Loans 0.80% Zions Peers 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr 99 99 99 00 00 0
Slide 16: A Diversified CRE Portfolio
A Diversified CRE Portfolio Commercial Real Estate by Location - 06/30/03 Arizona Other 20% 6% Washington / Oregon 3% No. California 8% Utah 13% Colorado 10% So. California 26% Nevada 14%
Slide 17: A Diversified CRE Portfolio
A Diversified CRE Portfolio Commercial Real Estate by Product Type - 06/30/03 Multifamily / Apartments 8% Other Single Family 7% Housing Recreation / 15% Restaurant 2% Medical Land Acquisition 3% & Development A&D 9% 4% Hotel/Motel Industrial 9% 8% Retail Office Weighted 17% 18% Average LTV of 63%
Slide 18: A Diversified CRE Portfolio
A Diversified CRE Portfolio CRE by Product Type and Collateral Location - 06/30/03 Product as Northern Southern Washington/ % Loan Product as Collateral Location Arizona California California Nevada Colorado Utah/ Idaho Oregon Other Total Type % Total CRE Commercial Term Industrial 1.35% 0.55% 2.70%
Slide 19: Single Family Housing Demand Strong
Single Family Housing Demand Strong Months of Speculative Market Inventory Orange County 0.7 LA / Ventura 1.2 San Diego 1.8 Inland Empire 0.6 Source: Meyers Real Estate Information, Inc.
Slide 20: Stress-Testing the CRE Portfolio
Stress-Testing the CRE Portfolio • Semi-annual review of larger loans • Portfolio scenario variables – Loan-to-value deterioration – Increase in default rate – Increase in balances
Slide 21: Stress-Testing the CRE Portfolio
Stress-Testing the CRE Portfolio • Assumptions – Moody’s valuation loss rates from 1991 – Actual LTVs – Moody’s 16.2% default rate (1991) • Capital at risk: 4.9%
Slide 22: 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 23: RBC Capital Markets / Lehman Brothers September 2003
RBC Capital Markets 18 September 2003 Lehman Brothers 8 September 2003 Martha’s Vineyard New York City
Zions Bancorporation — Lehman Brothers conference, New York City, September 2003 on 6ix