Zions Bancorporation
| Company type | Public company |
|---|---|
| Industry | Banking, Financial services |
| Founded | July 1873 |
| Founder | Church of Jesus Christ of Latter-day Saints (LDS Church) |
| Headquarters | Salt Lake City , United States |
Area served | United States (multiple states) |
| Products | Banking services under brands: Zions Bank, Amegy Bank of Texas, California Bank and Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, Commerce Bank of Washington |
Zions Bancorporation is a nationally chartered bank in the United States, with its main office located in Salt Lake City, Utah. Unlike a bank holding company, it functions as a national bank and conducts operations under seven distinct brands: Zions Bank, Amegy Bank of Texas, California Bank and Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and Commerce Bank of Washington.
By 2023, Zions Bancorporation operated 416 branches and served more than one million clients. Established in 1873 by the Church of Jesus Christ of Latter-day Saints (LDS Church), the bank was divested from the church in 1960.
History
Originally founded as Zion's Savings Bank & Trust Company by the LDS Church in July 1873, the institution was created to absorb the savings division of the Deseret National Bank, which was Utah's fourth national bank attempt since its incorporation in 1868. The bank commenced operations on October 1, 1873, with deposits totaling $5,876 from 46 account holders. Brigham Young, then president of the LDS Church, served as the bank’s inaugural president. The institution’s mission included encouraging immigration to Utah and supporting the church’s financial objectives.
Despite economic difficulties during the Panic of 1893, the bank maintained its financial stability.
In the early 1900s, Zions provided financing to several significant enterprises such as:
- Bingham Copper Company (which later became Kennecott Utah Copper)
- Salt Lake and Los Angeles Railroad Company (currently part of Union Pacific Railroad)
- Big Cottonwood Power Company (later known as Utah Power and now Rocky Mountain Power)
- Salt Lake Gas Company (which evolved into Mountain Fuel Supply and is now Questar Gas)
Although growth was temporarily disrupted by the Panic of 1907, deposits increased substantially from $2 million in 1901 to $9 million by 1918.
Great Depression
On February 15, 1932, a run on the bank began with customers withdrawing $1.5 million within two and a half days. Heber J. Grant, who held leadership roles as president of both the bank and LDS Church, publicly reassured depositors about the institution’s liquidity and security. This intervention restored trust; withdrawal lines shortened and many clients redeposited their funds. By the end of that month, deposits surpassed withdrawals, enabling Zions to endure through the Great Depression.
In 1957, Zions merged with Utah Savings and Trust Company (founded in 1889) and First National Bank of Salt Lake City (established in 1890), resulting in the formation of Zions First National Bank.
1960–2007
Keystone Insurance and Investment Co., established in April 1955 to acquire Lockhart Corporation, played a key role in Zions’ ownership transition. In April 1960, Keystone along with several investors purchased a controlling 57.5% stake in Zions First National Bank from the LDS Church, which at that time held deposits near $120 million. The company was rebranded as Zions Bancorporation in 1965 and operated under the name Zions Utah Bancorporation from 1966 until 1987.
The bank expanded its footprint through acquisitions including Bank of Kearns (1962), Bank of Spanish Fork (1968), Utah National Bank (1969), along with Bank of Commerce, Bank of St. George, Bountiful State Bank (1970), and later Bank of Vernal and Carbon Emery Bank (1973).
Zions went public with an initial public offering in January 1966. Minority shareholders remained until April 1972 when remaining shares were converted into common stock.
The bank entered new regional markets by acquiring Nevada State Bank in Nevada (1985), Mesa Bank in Arizona (1986), and Aspen Bancshares—covering Colorado and New Mexico—in 1996; this acquisition included Pitkin County Bank and Trust, Valley National Bank of Cortez, and Centennial Savings Bank.
In March 1997, Zions purchased 27 branches spanning Arizona, Idaho, Nevada, and Utah from Wells Fargo. That same year it acquired Tri-State Bank of Idaho (July) as well as Vectra Banking Corporation together with Tri-State Finance Corporation of Colorado for $200 million (September).
In 1999, Zions attempted to acquire First Security Corporation for $5.9 billion but encountered delays after restating prior financial results due to acquisition accounting complications. By March 2000, following an earnings warning that caused First Security’s stock price to decline, the deal’s value dropped to $3.8 billion. Ultimately, shareholders rejected the merger proposal; Wells Fargo subsequently acquired First Security in April 2000. Despite this obstacle, Zions solidified its position as Utah’s largest locally headquartered bank.
In December 2005, Zions expanded into Texas through acquiring Amegy Bank.
2008–present
On October 27, 2008, the U.S. government invested $1.4 billion in Zions through the Troubled Asset Relief Program. The bank completed repayment of the remaining $700 million on September 26, 2012, resulting in a $253 million gain for the government.
In 2010, Zions divested NetDeposit, selling it to BankServ.
Zions announced a corporate restructuring on June 1, 2015, which involved merging seven separate bank charters into a single charter and initiating cost-saving measures totaling $120 million.
In October 2018, Zions combined its holding company with its banking subsidiary, ZB, N.A., forming Zions Bancorporation, N.A. as a unified entity.