Zion Bancorporation analysis

Zion Bancorporation analysis
Paper details

1. The assignment requirement will be given. Read through the instructions on the first page and then locate the “Composition of Loan Portfolio”and “Composition of Deposits&Borrowed funds” sections, I will make the tables. You just have to answer the questions. Each section about half page.
2. Our assigned company is Zion Bancorporation. Its 10k can be find online. 3. Include a appendix of relevant pages from 10k that you used. And also cite it in the reference page.

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FIN421 (Fall 2014)
Group Project
INSTRUCTIONS
As a group, you are assigned a financial/bank holding company. The project involves analyzing the assigned company’s recent operating results, and understanding of environmental factors key to company’s financial health
Deadline
Group project report– Due 12 Noon Tuesday December 16 at Todd 480 (office of the Department of Finance & Management Science). Members of groups who did not turn in their reports on time will receive “0” for group project component of their final course grade
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Peer grades– Also due 12 Noon Tuesday December 16 at Todd 480 (office of the Department of Finance & Management Science). Submit the attached peer grade sheet custom-made for your group (submit the generic version on Angel ONLY IF you misplaced the custom version). Grade other group members on a 10-point scale (with “10” being the highest) based on their contributions to the project. Members receiving 6.0 or higher average peer score will receive full project grade assigned to the group. For members with average peer score less than 6.0, their project grade will be discounted in proportion to the average peer score each individual received. Do not assign grade to yourself
Reference Sources
Primary reference sources include fiscal years 2009 and 2013 10K reports of the assigned company, FOMC September and October 2014 meeting statement/minutes, and financial websites such as Yahoo finance, Google finance, CNBC.com. You will rely heavily on 10K to complete most project requirements. Sections of 10K of particular help include: overview, management’s discussion and analysis of financial condition and results of operations (MD&A), consolidated balance sheet and income statement, and notes to consolidated financial statements (Notes).
Written Report
Written report should be typed, single-spaced, font size of 12. You must have a cover page with assigned company name & ticker, and all group member’ names. You must include as appendix (a) hard copy of relevant pages from 10K (include ONLY pages where information were obtained); (b) link to online articles/news stories you referenced to
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REQUIREMENTS
Business descriptions
? Provide background information about the company. The discussion should address, at the minimum, company headquarter location; a financial or bank holding company; is Federal- or State-chartered (banking unit); has membership at the (1) Federal Reserve System and (2) Federal Deposit Insurance Corp (FDIC); company’s fiscal year end date
Snapshot of company stock
? Pick a date (weekdays only) between November 18 and December 12 2014, and report the company’s market cap, closing stock price of the day, 52-week high & low, P/E ratio, dividend yield, and beta. These items are readily available on financial website such as yahoo finance, google finance, cnbc.com, Bloomberg.com, etc.

Reportable business segments of the company
? List and describe reportable business segments in fiscal year 2009, and in fiscal year 2013
? Report in a table respective % breakdown of (1) total assets (2) revenue and (3) net income from all reportable business segments for ‘08, ‘09 (from ‘09 10K) ‘12, and ‘13 (from ‘13 10K)
? Relate what you observe in the table (% breakdown) to discussions in 10K pertaining to the various business segments
? Did the company go through business restructure (such as merger, acquisition, spinoff, or sell of business) since ‘08? Briefly describe, if any, these activities? Which part of the business has experienced growth in recent years? And which part of the business is in decline?
? What about competitions of the various business segments? Which part of the business has witnessed increasing competitions? What did company management comment about competitions? How has competitions impacted profitability?
Supervision and regulations
? Summarize regulatory and supervisory environment as discussed in 10K. Who are the key regulatory bodies of the parent company? And the company’s banking unit? Review discussions in 10K pertaining to Dodd Frank Act of 2010 and Volcker Rule. What changes (strategies, reorganization, restructure, etc.) the company might have made in response to Dodd Frank and Volker Rule? Give a few examples and briefly discuss
Interest rate environment
? Relate your discussions to what you read in 10K and other sources (including FOMC September and October 2014 meeting statement and minutes)
? How has the interest rate environment been since the ‘08 financial crisis? What changes (strategies, reorganization, restructure, etc.) the company might have made in response to rate environment in recent years?
? With the end of QE3 last month, do you expect interest rate to rise or fall in the coming months/years? And why?
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Analysis of Consolidated Financial Statements, fiscal years 2008, 2009, 2012 and 2013
Composition of Assets and Liabilities/Equity
? Based on the consolidated balance sheet reported in ‘09 (two years, ‘08 and ‘09) and ‘13 (two years, ‘12 and ‘13) 10K, prepare a table displaying % makeup of total asset. Your table should have the following columns: asset type, 08 $, 08 %, 09 $, 09 %, 12 $, 12 %, 13 $, and 13 %
? Likewise, prepare another table displaying % makeup of debt/ equity. You table should have these columns: debt/equity type, 08 $, 08 %, 09 $, 09 %, 12 $, 12 %, 13 $, and 13 %
? Relate what you observe in the two tables to discussions in 10K

? What was the respective largest asset type for each of the four fiscal years observed? Were there significant shifts in relative weight from ‘08 to ‘13? How did management explain the changes? Relate your observations to events (including regulatory changes) took place during and post the financial crisis? Locate
? Likewise, what was the respective largest debt/ equity type for each of the four fiscal year observed? Were there significant changes in relative weight from ‘08 to ‘13? How did management explain the changes? Relate your observations to events (including regulatory changes) took place during and post the financial crisis?
? Locate Fed funds, and Reverse Repo on asset section of the balance sheet. Were there significant changes from ‘08 to ‘13 in the use of Fed funds and/or Repos? How did management explain the changes? Relate your observations to events (including Federal Reserve Policies and interest rates) took place during and post the financial crisis
Composition of Loan Portfolio
? Based on the consolidated balance sheet reported in ‘09 (two years, ‘08 and ‘09) and ‘13 (two years, ‘12 and ‘13) 10K, prepare a table displaying % makeup of loan portfolio. Your table should have these columns: loan type, 08 $, 08 %, 09 $, 09 %, 12 $, 12 %, 13 $, and 13 %. Do not include “loans held for sale” in your analysis
? Relate what you observe in the table to discussions in 10K
? Were there significant changes in relative weight of the various loan type from ‘08 to ‘13? How did management explain the changes? Relate your observations to events (including regulatory changes) took place during and post the financial crisis? In your reading of 10K, were there noticeable improvements or deteriorations in quality of the loan portfolio (Hint: it helps to read discussions on loan loss reserve and charge-offs in the 10K) since ‘08?
Composition of Investment Portfolio—securities available for sale & securities held to maturity
? Based on the consolidated balance sheet reported in ‘09 (two years, ‘08 and ‘09) and ‘13 (two years, ‘12 and ‘13) 10K, prepare a table displaying % makeup of investment securities available for sale. The table should have these columns: securities type, 08 $, 08%, 09 $, 09 %, 12 $, 12 %, 13 $, and 13 %
? Likewise, prepare a table displaying % makeup of investment securities held to maturity. The table should have these columns: securities type, 08 $, 08%, 09 $, 09 %, 12 $, 12 %, 13 $, and 13 %
? Relate what you observe in the two tables to discussions in 10K
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? Locate investment in (1) treasury & agency securities, and (2) mortgage-backed securities (MBS). Were there significant shifts in relative weight from ‘08 to ‘13? How did management explain the changes? Relate your observations to events (including regulatory changes, monetary policies) took place during and post the financial crisis?
Composition of Deposits & Borrowed funds
? Based on the consolidated balance sheet reported in ‘09 (two years, ‘08 and ‘09) and ‘13 (two years, ‘12 and ‘13) 10K, prepare a table displaying types of deposits & borrowed funds sourced. The table should have these columns: liability type, 08 $, 09 $, 12 $, and 13 $
? Relate what you observe in the table to discussions in 10K
? Were there significant changes from ‘08 to ‘13 in the sourcing of Fed funds and/or Repos for funds? How did management explain the changes? Relate your observations to events (including Federal Reserve Policies and interest rates) took place during and post the financial crisis

Composition of Net Income (loss)
? Based on the consolidated income statement reported in ‘09 (two years, ‘08 and ‘09) and ‘13 (two years, ‘12 and ‘13) 10K, prepare a table for % makeup of net income (loss). Your table should have these columns: income type (net interest or net non-interest income), 08 $, 08 %, 09 $, 09 %, 12 $, 12 %, 13 $, and 13 %
? Give two examples each of interest- and fee-based activities the company engaged in. Briefly discuss
? Relate what you observe in the table to discussions in 10K
? Were there significant changes from ‘08 to ‘13 in relative contributions of interest versus non-interest income to the company’s bottom line? Relate this to relative growth of various business segments? How did management explain the changes? Are they consistent with company strategies? Relate your observations to events (including Federal Reserve Policies, interest rates environment, and regulatory changes) took place during and post the financial crisis
Net interest margin
? Based on the consolidated income statement & balance sheet reported in ‘09 (two years, ‘08 and ‘09) and ‘13 (two years, ‘12 and ‘13) 10K, prepare a table for net interest margin, defined as (net interest income/average earning assets). Define earning assets as the sum of net loan and investment. And average earning assets is average of earning assets at the beginning and end of the year. The table should have these columns: year, net interest income $, net loan-beg. $, investment securities- beg. $, net loan-end $, investment securities- end $, total earning assets- beg. $, total earning assets- end $, average earning assets $, net interest margin (%)
? Relate what you observe in the table to discussions in 10K