Nevada State Bank parent posts a loss

Monday, April 24, 2000 | 11:24 a.m.

Zions Bancorporation, parent of Nevada State Bank, reported a first quarter loss of $28.5 million or 33 cents a share compared to net earnings of $47.5 million or 56 cents per share a year ago.

The bank said the quarterly loss was the result of its aborted merger with Salt Lake City rival First Security Corp. That failed merger cost Zions $85.5 million or 99 cents per share, including a write-down to market value of its investment in First Security stock.

Excluding the merger-related charges, Zions reported first quarter net income of $57 million or 66 cents per share.

The banks' earnings fell below the 67 cents per share median average expected by analysts surveyed by Zacks Investment Research.

On March 31, Zions' shareholder rejected the proposed merger with First Security. Less than two weeks later, Wells Fargo & Co. announced its intention to buy First Security in a deal worth about $3 billion.

Zions' Chief Executive Officer Harris Simmons said the bank's deposit growth was "sluggish during the last quarter of 1999" but recovered to double-digit levels last quarter.