Zions Bancorporation
Encyclopedia
Zions Bancorporation is a member of the S&P 500
, a bank holding company headquartered in Salt Lake City, Utah
, USA. Among its subsidiaries are Amegy Bank of Texas, California Bank & Trust, National Bank of Arizona, Nevada State Bank
, the Commerce Bank of Oregon, the Commerce Bank of Washington, Vectra Bank Colorado, Zions First National Bank
, Zions Agricultural Finance, Zions Bank Capital Markets, Zions Credit Corporation, Zions Direct
, Zions Management Services Company, Zions Public Finance, Zions Small Business Finance, and Contango Capital Advisors. As of June 30, 2008, it had $54.6 billion in assets and approximately 11,000 employees.
. At the time of the bank's formation, the first settlers had been in the Salt Lake Valley only 26 years and Utah
was still 23 years away from statehood. It was the state's first chartered savings bank and trust company. The bank prospered and grew during the next twenty years. In the panic of 1893, the bank managed not only to remain solvent, but continue to grow.
As the twentieth century began, Zions was making significant contributions to the business community in Utah
. Zions helped finance such firms as:
The depression of 1907 was the lone interruption in the steady growth of Zions. But even with this interruption, deposits grew.
placed a sign in the bank's window that read, in part:
Lines of customers that had been as long as a city block began to dwindle, and within five or six days many customers returned to deposit their money. By month's end, total deposits were more than withdrawals, and Zions had survived the most severe crisis
in American banking history.
At the end of 1957, Zion's merged with Utah Savings and Trust Company and First National Bank of Salt Lake City. The surviving institution was named Zions First National Bank.
Zions went public in January 1966, and has paid a cash dividend
to shareholders every year since.
Throughout the long bear market of the 1970s, its stock performed well, rising from its low, early in that decade, to ten times in value by 1985, with a three-for-two split in 1981. By 1986 the company had a book value
of over US$170 million, with steady annual earnings of over US$26 million.
It expanded into Nevada
in 1985 and Arizona
in 1986.
In 1993, the stock split again, two-for-one, and by then had more than doubled from its 1985 peak high.
By 1996, the company had become a member of the S&P MidCap 400, and the stock was halfway to yet another double from the prior early 1990s peak, with book value of nearly US$420 million, and earnings of over US$80 million. With the merger of First Security Corporation
into Wells Fargo
in 2000, Zions became the largest bank headquartered in Utah.
It expanded into Colorado
and New Mexico
in 1996, Idaho
and California
in 1997, Washington in 1998, Oregon
and Texas
in 2005. Today, Harris H. Simmons is CEO of Zions Bancorporation and A. Scott Anderson serves as CEO of Zions Bank.
On January 26, 2009, Zions Bancorp CEO Harris Simmons announced a loss of $482.9 million, or $4.36 per share, compared with earnings of $45.5 million, or 39 cents per share, a year earlier. The company also cut its quarterly dividend to four cents a share from 32 cents a share.
On August 31, 2010, Zions Bancorp announced the sale of its NetDeposit subsidiary to BankServ
in a primarily cash transaction. The NetDeposit unit's primary business was remote deposit
, along with associated check and credit card processing services.
On September 13, 2010, Zions Bancorp (NASDAQ:ZION) was listed as one of four regional banks with the best performing stocks among the leading financial companies at Monday's opening. All four banks had share rising more than 4%.
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
, a bank holding company headquartered in Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
, USA. Among its subsidiaries are Amegy Bank of Texas, California Bank & Trust, National Bank of Arizona, Nevada State Bank
Nevada State Bank
Nevada State Bank is the oldest and largest state-chartered commercial bank in Nevada with assets of more than $4.1 billion. Established in Las Vegas in 1959, Nevada State Bank now has more than 50 branches in 20 communities across the state, and employs more than 850 people. It offers a complete...
, the Commerce Bank of Oregon, the Commerce Bank of Washington, Vectra Bank Colorado, Zions First National Bank
Zions Bank
Zions Bank is an American bank, and a subsidiary of Zions Bancorporation. According to the company, it is the oldest financial institution in Utah. The bank has 103 full-service branches and 150 ATMs, and over 2,700 employees in both Utah and Idaho.- History :Zion's Savings Bank and Trust Company...
, Zions Agricultural Finance, Zions Bank Capital Markets, Zions Credit Corporation, Zions Direct
Zions Direct
Zions Direct is an online broker-dealer subsidiary of Salt Lake City, Utah, USA based Zions Bank, a subsidiary of Zions Bancorporation that specializes in offering securities for the self-directed and fixed income investors...
, Zions Management Services Company, Zions Public Finance, Zions Small Business Finance, and Contango Capital Advisors. As of June 30, 2008, it had $54.6 billion in assets and approximately 11,000 employees.
History
The history of Zions Bancorporation stretches back to the early days of the Mormon settlement of Utah. Zions can trace its history to the founding of Zion's Savings Bank and Trust Company, which was opened in the fall of 1873 by Brigham YoungBrigham Young
Brigham Young was an American leader in the Latter Day Saint movement and a settler of the Western United States. He was the President of The Church of Jesus Christ of Latter-day Saints from 1847 until his death in 1877, he founded Salt Lake City, and he served as the first governor of the Utah...
. At the time of the bank's formation, the first settlers had been in the Salt Lake Valley only 26 years and Utah
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
was still 23 years away from statehood. It was the state's first chartered savings bank and trust company. The bank prospered and grew during the next twenty years. In the panic of 1893, the bank managed not only to remain solvent, but continue to grow.
As the twentieth century began, Zions was making significant contributions to the business community in Utah
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
. Zions helped finance such firms as:
- Bingham Copper Company (later Kennecott CopperKennecott Utah CopperKennecott Utah Copper Corporation , a division of Rio Tinto Group, is a mining, smelting, and refining company. Its corporate headquarters are located in South Jordan, Utah, USA. Kennecott operates one of the largest open-pit copper mines in the world in Bingham Canyon, Salt Lake County, Utah. ...
) - Salt Lake and Los Angeles Railroad Company (now Union PacificUnion Pacific RailroadThe Union Pacific Railroad , headquartered in Omaha, Nebraska, is the largest railroad network in the United States. James R. Young is president, CEO and Chairman....
) - Big Cottonwood Power Company (later Utah Power and today Rocky Mountain Power)
- Salt Lake Gas Company (later Mountain FuelMountain Fuel Supply CompanyQuestar Corporation is an oil and natural gas energy company based in Salt Lake City, Utah. Questar is an oil and natural gas producer in the Rocky Mountains....
and today Questar GasMountain Fuel Supply CompanyQuestar Corporation is an oil and natural gas energy company based in Salt Lake City, Utah. Questar is an oil and natural gas producer in the Rocky Mountains....
)
The depression of 1907 was the lone interruption in the steady growth of Zions. But even with this interruption, deposits grew.
Great Depression
At the time of the great crash in October 1929, Zions was in a very sound financial position. On the morning of February 15, 1932, customers began a run on the bank, waiting in lines that ran out of the building and onto the street. Tellers were instructed to honor all withdrawal requests. In two and a half days a total of $1.5 million was withdrawn. Near the end of the second day, bank president Heber J. GrantHeber J. Grant
Heber Jeddy Grant was the seventh president of The Church of Jesus Christ of Latter-day Saints . He was ordained an apostle on October 16, 1882, on the same day as George Teasdale...
placed a sign in the bank's window that read, in part:
[The bank] is in a very strong, clean, liquid condition. It can pay off every depositor in full. Fear of its failure is not only without foundation, but positively foolish. There is not a safer bank in the State or the Nation.
Lines of customers that had been as long as a city block began to dwindle, and within five or six days many customers returned to deposit their money. By month's end, total deposits were more than withdrawals, and Zions had survived the most severe crisis
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
in American banking history.
At the end of 1957, Zion's merged with Utah Savings and Trust Company and First National Bank of Salt Lake City. The surviving institution was named Zions First National Bank.
Zions Bancorporation
In 1960, Keystone Insurance and Investment Company, which had been founded in 1955, bought a majority stake in Zions from The Church of Jesus Christ of Latter-day Saints and changed its name to Zions Utah Bancorporation. It kept that name until 1987, when it became shortened to Zions Bancorporation, its present name, to reflect the growing presence of the company outside of Utah.Zions went public in January 1966, and has paid a cash dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
to shareholders every year since.
Throughout the long bear market of the 1970s, its stock performed well, rising from its low, early in that decade, to ten times in value by 1985, with a three-for-two split in 1981. By 1986 the company had a book value
Book value
In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or Impairment costs made against the asset. Traditionally, a company's book value...
of over US$170 million, with steady annual earnings of over US$26 million.
It expanded into Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
in 1985 and Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
in 1986.
In 1993, the stock split again, two-for-one, and by then had more than doubled from its 1985 peak high.
By 1996, the company had become a member of the S&P MidCap 400, and the stock was halfway to yet another double from the prior early 1990s peak, with book value of nearly US$420 million, and earnings of over US$80 million. With the merger of First Security Corporation
First Security Corporation
First Security Corporation was a multistate bank holding company in the western United States, primarily in Utah, Idaho, New Mexico, Oregon, Nevada, and Wyoming...
into Wells Fargo
Wells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
in 2000, Zions became the largest bank headquartered in Utah.
It expanded into Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
and New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
in 1996, Idaho
Idaho
Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
and California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
in 1997, Washington in 1998, Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
and Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
in 2005. Today, Harris H. Simmons is CEO of Zions Bancorporation and A. Scott Anderson serves as CEO of Zions Bank.
Recent Events
In September 2008, one of Zions' subsidiaries, Nevada State Bank, acquired the insured deposits of failed Silver State Bank, which was closed by Nevada state officials. Silver State was the 11th bank to fail in 2008.On January 26, 2009, Zions Bancorp CEO Harris Simmons announced a loss of $482.9 million, or $4.36 per share, compared with earnings of $45.5 million, or 39 cents per share, a year earlier. The company also cut its quarterly dividend to four cents a share from 32 cents a share.
On August 31, 2010, Zions Bancorp announced the sale of its NetDeposit subsidiary to BankServ
BankServ
BankServ, a financial services company headquartered in Enterprise, Nevada, develops electronic banking software and operates outsourced data processing centers used by banks and other businesses to move money electronically...
in a primarily cash transaction. The NetDeposit unit's primary business was remote deposit
Remote deposit
Remote deposit refers to the ability to deposit a check into a bank account from a remote location, such as an office or home, without having to physically deliver the check to the bank...
, along with associated check and credit card processing services.
On September 13, 2010, Zions Bancorp (NASDAQ:ZION) was listed as one of four regional banks with the best performing stocks among the leading financial companies at Monday's opening. All four banks had share rising more than 4%.