As of October 18, holders of the May 15, 2014 and November 16, 2015 series of Zions Bancorporation subordinated notes, which are convertible into the company’s Series A or Series C preferred stock, filed notice of their election to convert a combined $4.3 million principal amount of these notes into 166,880 depositary shares each representing a 1/40th interest in a share of the company’s Series C preferred stock and 3,200 depositary shares each representing a 1/40th interest in a share of the company’s Series A preferred stock. As a result of the elected conversions, the company expects an additional 4,172 shares of Series C preferred stock and 80 shares of Series A preferred stock will be issued when the conversions close (on November 15th and November, respectively), unless the elections are revoked prior to that date. The expected discount amortization attributable to the conversions is approximately $1.1M (pre-tax), which compares to the accelerated discount amortization for the third quarter conversions of $2M (pre-tax). The fourth quarter conversion expense would result in net interest margin pressure of one basis point, using the average earning assets of the second quarter, which compares to actual conversion-related net interest margin pressure of two basis points in the third quarter. The after-tax cost associated with the second quarter conversion is expected to be $0.9M.