SALT LAKE CITY – (BUSINESS WIRE) – Zions Bancorporation (NASDAQ: ZION) today announced its intention to adopt AMERIBORÂ® as a replacement index for the London Inter-Bank Offered Rate (LIBOR) for the majority of its non-syndicated commercial loans currently indexed to the LIBOR. LIBOR is being phased out globally, and U.S. banking regulators have ordered banks to stop entering into new loan agreements using LIBOR and adopt one or more alternative benchmark rates no later than the 31st. December 2021.
AMERIBORÂ® is an index created by the American Financial Exchange. It represents the actual volume-weighted borrowing costs of thousands of banks in the United States and conforms to the standards of the International Organization of Securities Commissions (IOSCO). AMERIBORÂ® is currently released for overnight and 30 day periods.
âWe look forward to working with thousands of our borrowing clients to smoothly transition to using AMERIBORÂ® as a benchmark rate in their borrowing agreements,â said Harris H. Simmons, President and CEO of Zions Bancorporation. âAMERIBORÂ® not only reflects the true cost of funds for thousands of participating banks, but over the past two years it has also demonstrated less volatility to LIBOR than the Guaranteed Overnight Reference Rate (SOFR) . AMERIBORÂ® is also attractive for use as a benchmark rate as the majority of our current LIBOR-based contracts have 30-day reset dates, a feature currently not available with SOFR. ”
Mr. Simmons said Zions intends to begin adopting AMERIBORÂ® in many of its credit agreements starting this summer.
Zions Bancorporation, NA is one of the nation’s leading financial services companies with annual net sales of $ 2.8 billion in 2020 and over $ 80 billion in total assets. Zions operates under the leadership of local and distinct brand management teams in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming. The Bank is a consistent recipient of National and State Client Surveys in the Small and Medium Business Banking sector, as well as a leader in Small Business Administration public finance and lending advisory services. In 2020, Zions was ranked 9th in the United States for SBA Paycheck Protection Program loans. Additionally, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to local bank brands can be found at zionsbancorporation.com.