Zions Bancorporation Reports Earnings Of $0.34 Per Diluted Common Share For Third Quarter 2012

 Zions Bancorporation Reports Earnings Of $0.34 Per Diluted Common Share For
                              Third Quarter 2012

PR Newswire

SALT LAKE CITY, Oct. 22, 2012

SALT LAKE CITY, Oct.22, 2012 /PRNewswire/ --Zions Bancorporation (NASDAQ:
ZION) ("Zions" or "the Company") today reported third quarter net earnings
applicable to common shareholders of $62.3 million or $0.34 per diluted common
share, compared to $55.2 million or $0.30 per diluted share for the second
quarter of 2012.

Adjusted for the noncash effects in the third quarter of (1) the discount
amortization on conversion of subordinated debt and additional accretion, net
of expense, on acquired FDIC-supported loans ($6.3 million, $0.03 per share),
and (2) the remaining discount amortization for the $700 million redemption of
Troubled Asset Relief Program ("TARP") preferred stock ($16.6 million, $0.09
per share), net earnings were $85.2 million or $0.46 per diluted share for the
third quarter of 2012, compared to $72.9 million or $0.40 per diluted share
for the second quarter of 2012.

Third Quarter 2012 Highlights

  oLoans and leases, excluding FDIC-supported loans, increased $351 million,
    or an annualized 3.9%, to $36.6 billion at September30, 2012.
  oNet interest income increased to $444 million from $432 million in the
    second quarter; core net interest income declined slightly to $439 million
    from $444 million in the second quarter.
  oBoth net loan and lease charge-offs and nonperforming lending-related
    assets declined 11%, as credit quality continues to improve.
  oTangible common equity per common share improved to $20.24 from $19.65 in
    the second quarter.
  oThe Company successfully completed the redemption of its TARP preferred
    stock.

"We are pleased with the accomplishments in the third quarter, including
stronger loan growth and the final redemption of TARP funds," said Harris H.
Simmons, chairman and chief executive officer. "Regarding loan growth, we
currently expect stronger loan balances in the fourth quarter and in 2013,"
continued Mr. Simmons. "We are also pleased with the continued strong
improvement in credit quality, including a strong improvement in nonperforming
assets and net charge-offs compared to the prior quarter."

Loans

Loans and leases, excluding FDIC-supported loans, increased $351 million on a
net basis to $36.6 billion at September30, 2012, compared to $36.2 billion at
June30, 2012. The increases were predominantly in commercial and industrial,
1-4 family residential, and term commercial real estate loans and were
widespread geographically. Decreases of $285 million in commercial owner
occupied and construction and land development loans partially offset
increases in other loan categories. Average loans and leases, excluding
FDIC-supported loans, were $36.5 billion during the third quarter of 2012,
compared to $36.1 billion during the second quarter of 2012.

Deposits

Average total deposits for the third quarter of 2012 increased $535 million,
or 1.2% (5.0% annualized), to $43.5 billion, compared to $42.9 billion for the
second quarter of 2012. The increase resulted from a higher level of average
noninterest-bearing demand deposits, primarily in nonpersonal accounts, for
the third quarter of 2012, which were $16.8 billion compared to $16.2 billion
for the second quarter of 2012. The ratio of loans to deposits was 84.9% at
September30, 2012, compared to 85.4% at June30, 2012.

Debt and Shareholders' Equity

As previously reported, on September 26, 2012, the Company redeemed the
remaining $700 million of TARP preferred stock pursuant to its Capital Plan
submitted to the Federal Reserve in January 2012. The increase in the
preferred stock dividend this quarter primarily resulted from the remaining
discount amortization related to warrants issued in conjunction with the TARP
preferred stock.

As previously announced, effective September 17, 2012, approximately $5.4
million of convertible subordinated debt was converted into the Company's
Series C preferred stock. Accelerated discount amortization on the converted
debt increased interest expense by a pretax noncash amount of approximately
$2.0 million ($1.6 million after-tax) in the third quarter of 2012, compared
to $16.2 million ($13.2 million after-tax) in the second quarter of 2012.

Accumulated other comprehensive income (loss) improved by approximately $41
million, primarily due to fair value increases in CDO investment securities.

The tangible common equity ratio was 7.17% at September30, 2012, compared to
6.91% at June30, 2012. The estimated common equity tier 1 capital ratio was
9.84% at September30, 2012, compared to 9.78% at June30, 2012.

Net Interest Income

Net interest income increased 2.8% to $444 million for the third quarter of
2012, compared to $432 million for the second quarter of 2012. Core net
interest income, adjusted for the discount amortization on convertible
subordinated debt and accretion on acquired loans, was approximately $439
million for the third quarter of 2012, compared to $444 million for the second
quarter of 2012.

The net interest margin increased to 3.63% in the third quarter of 2012,
compared to 3.62% in the second quarter of 2012. The core net interest margin
decreased 12 basis points to 3.60% in the third quarter, compared to 3.72% in
the second quarter.The decreases in the core net interest income and margin
were due primarily to reduced yields on loans and investment securities
attributable to rate resets; on these assets, the initial rate was fixed for a
period of time (typically five years) and the current benchmark index rate is
significantly lower than it was at the time the assets were originated.
Similarly, maturing loans are being replaced at tighter credit spreads.

Noninterest Income

Noninterest income for the third quarter of 2012 was $119.2 million, compared
to $123.0 million for the second quarter of 2012. The decrease was primarily
due to lower dividends and other investment income in the third quarter
compared to higher levels recognized in the second quarter. Other less
volatile sources of noninterest income, such as various service charges on
deposits and loans, were relatively stable compared to the second quarter.

CDO Investment Securities

During the third quarter of 2012, the Company recognized credit-related
other-than-temporary impairment ("OTTI") on collateralized debt obligations
("CDOs") of $2.7 million or $0.01 per diluted share, compared to $7.3 million
or $0.02 per diluted share during the second quarter of 2012. OTTI this
quarter was due primarily to the impact of prepayments on the value of junior
CDO tranches. Gains resulting from cash principal payments on CDOs previously
written down, amounting to $3.0 million, exceeded OTTI during the third
quarter of 2012.

The following table stratifies the CDOs into performing tranches without
credit impairment and nonperforming tranches at September30, 2012:



                September30, 2012
                                                        Net                   % of carrying value to
                                                        unrealized  Weighted  par
(Amounts in     No. of    Par      Amortized  Carrying  losses      average   September  June
millions)                                               recognized  discount  30,        30,   Change
                tranches  amount   cost       value     in AOCI ^1  rate ^2   2012       2012

Performing
CDOs
Predominantly   30        $ 887    $  792     $  637    $   (155)   5.34   %  72    %    63 %  9    %
bank CDOs
Insurance-only  21        450      444        322       (122)       8.51   %  72    %    73 %  (1)  %
CDOs
Other CDOs      7         79       68         62        (6)         7.29   %  78    %    76 %  2    %
Total
performing      58        1,416    1,304      1,021     (283)       6.46   %  72    %    67 %  5    %
CDOs
Nonperforming
CDOs ^3
CDOs deferring
interest, but   3         72       72         19        (53)        13.69  %  26    %    29 %  (3)  %
never credit
impaired
CDOs credit
impaired prior  32        593      437        128       (309)       13.44  %  22    %    23 %  (1)  %
to last 12
months
CDOs credit
impaired        23        444      275        63        (212)       14.84  %  14    %    16 %  (2)  %
during last 12
months
Total
nonperforming   58        1,109    784        210       (574)       14.02  %  19    %    21 %  (2)  %
CDOs
Total CDOs      116       $ 2,525  $  2,088   $  1,231  $   (857)   9.78   %  49    %    47 %  2    %



^1 Accumulated other comprehensive income, amounts presented are pretax.
^2 Margin over related LIBOR index.
^3 Defined as either deferring current interest ("PIKing") or OTTI; the
majority are predominantly bank CDOs.

Fair value increases occurred in senior tranches and were driven by collateral
credit quality improvements, prepayments and declining credit spreads.

Noninterest Expense

Noninterest expense for the third quarter of 2012 was $395.0 million compared
to $401.7 million for the second quarter of 2012. The decrease was due
primarily to a reduction in other real estate expense resulting from increased
net gains on property sales, and to a decline in the provision for unfunded
lending commitments.

Asset Quality

Net loan and lease charge-offs decreased 11% to $38 million for the third
quarter of 2012, compared to $43 million million for the second quarter of
2012; gross charge-offs declined 20% compared to the second quarter and have
declined 54% compared to the year-ago period. Net charge-offs declined
primarily in commercial and industrial and home equity credit line loans.

Nonperforming lending-related assets declined 11% to $838 million at
September30, 2012 from $938 million at June30, 2012. Nonaccrual loans
declined 9% to $719 million at September30, 2012 from $793 million at
June30, 2012. The ratio of nonperforming lending-related assets to loans and
leases and other real estate owned decreased to 2.23% at September30, 2012,
compared to 2.53% at June30, 2012.

Classified loans, excluding FDIC-supported loans, decreased approximately 4%
to $1.8 billion at September30, 2012, compared to $1.9 billion at June30,
2012. Approximately 76% of classified loans were current as to principal and
interest for the third quarter of 2012, compared to 73% for the second quarter
of 2012.

The provision (credit) for loan losses was $(1.9) million for the third
quarter of 2012, compared to $10.9 million for the second quarter of 2012. The
allowance for credit losses was $1.0 billion, or 2.77% of loans and leases at
September30, 2012, compared to $1.1 billion, or 2.92% of loans and leases at
June30, 2012. The reduction in both the allowance and the provision is
attributable to improvement in the quantity and severity of problem loans.

Conference Call

Zions will host a conference call to discuss these third quarter results at
5:30 p.m. ET this afternoon (October22, 2012). Media representatives,
analysts and the public are invited to listen to this discussion by calling
253-237-1247 (domestic and international) and entering the passcode 32821169,
or via on-demand webcast. A link to the webcast will be available on the Zions
Bancorporation website at www.zionsbancorporation.com. A replay of the call
will be available from approximately 7:30 p.m. ET on Monday, October22, 2012,
until midnight ET on Monday, October29, 2012, by dialing 404-537-3406
(domestic and international) and entering the same passcode. The webcast of
the conference call will also be archived and available for 30 days.

About Zions Bancorporation

Zions Bancorporation is one of the nation's premier financial services
companies, consisting of a collection of great banks in select Western
markets. Zions operates its banking businesses under local management teams
and community identities through approximately 500 offices in 10 Western and
Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New
Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader
in Small Business Administration lending and public finance advisory services.
In addition, Zions is included in the S&P 500 and NASDAQ Financial 100
indices. Investor information and links to subsidiary banks can be accessed at
www.zionsbancorporation.com.

Forward-Looking Information

Statements in this press release that are based on other than historical data
or that express the Company's expectations regarding future events or
determinations are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements provide
current expectations or forecasts of future events or determinations. These
forward-looking statements are not guarantees of future performance or
determinations, nor should they be relied upon as representing management's
views as of any subsequent date. Forward-looking statements involve
significant risks and uncertainties and actual results may differ materially
from those presented, either expressed or implied, in this press release.
Factors that might cause such differences include, but are not limited to: the
Company's ability to successfully execute its business plans and achieve its
objectives; changes in general economic and financial market conditions,
either internationally, nationally or locally in areas in which the Company
conducts its operations, including changes in securities markets and
valuations in structured securities and other assets; changes in governmental
policies and programs resulting from general economic and financial market
conditions; changes in interest and funding rates; continuing consolidation in
the financial services industry; new private and governmental legal actions or
changes in existing private and governmental legal actions; increased
competitive challenges and expanding product and pricing pressures among
financial institutions; legislation or regulatory changes which adversely
affect the Company's operations or business (including The Dodd-Frank Wall
Street Reform and Consumer Protection Act); and changes in accounting
policies, procedures or determinations as may be required by the Financial
Accounting Standards Board or other regulatory agencies.

Additional factors that could cause actual results to differ materially from
those expressed in the forward-looking statements are discussed in Zions
Bancorporation's most recent Annual Report on Form 10-K and Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and
available at the SEC's Internet site (http://www.sec.gov).

Except as required by law, the Company specifically disclaims any obligation
to update any factors or to publicly announce the result of revisions to any
of the forward-looking statements included herein to reflect future events or
developments.



Financial Highlights

(Unaudited)


                   Three Months Ended
(In thousands,
except share, per  September30,  June30,       March31,      December31,   September30,
share, and ratio   2012           2012           2012           2011           2011
data)
PER COMMON SHARE
Dividends          $  0.01        $  0.01        $  0.01        $  0.01        $  0.01
Book value per     26.05          25.48          25.25          25.02          24.78
common share ^1
Tangible common
equity per common  20.24          19.65          19.39          19.14          18.87
share ^1
SELECTED RATIOS
Return on average  0.82        %  0.70        %  0.69        %  0.67        %  0.84        %
assets
Return on average  5.21        %  4.71        %  2.21        %  3.84        %  5.58        %
common equity
Net interest       3.63        %  3.62        %  3.73        %  3.86        %  3.99        %
margin
Capital Ratios
Tangible common    7.17        %  6.91        %  6.89        %  6.77        %  6.90        %
equity ratio ^1
Tangible equity    9.32        %  10.35       %  10.24       %  11.33       %  11.56       %
ratio ^1
Average equity to  12.22       %  12.37       %  13.31       %  13.27       %  13.51       %
average assets
Risk-Based Capital
Ratios ^1,2
Common equity tier 9.84        %  9.78        %  9.71        %  9.57        %  9.53        %
1 capital
Tier 1 leverage    11.04       %  12.31       %  12.17       %  13.40       %  13.48       %
Tier 1 risk-based  13.46       %  15.03       %  14.83       %  16.13       %  16.10       %
capital
Total risk-based   15.21       %  16.89       %  16.76       %  18.06       %  18.12       %
capital
Taxable-equivalent
net interest       $  448,632     $  436,610     $  447,161     $  466,699     $  475,580
income
Weighted average
common and         183,382,650    183,136,631    182,963,828    182,823,190    182,857,702
common-equivalent
shares outstanding
Common shares      184,156,402    184,117,522    184,228,178    184,135,388    184,294,782
outstanding ^1

^1 At period end.
^2 Ratios for September30, 2012 are estimates.



CONSOLIDATED BALANCE SHEETS
(In thousands,      September30,  June30,      March 31,     December 31,  September
except share        2012           2012          2012          2011          30,
amounts)                                                                     2011
                    (Unaudited)    (Unaudited)   (Unaudited)                 (Unaudited)
ASSETS
Cash and due from   $  1,060,918   $ 1,124,673   $ 1,082,186   $ 1,224,350   $ 1,102,768
banks
Money market
investments:
Interest-bearing    5,519,463      7,887,175     7,629,399     7,020,895     5,118,066
deposits
Federal funds sold
and security resell 1,960,294      83,529        52,634        102,159       165,106
agreements
Investment
securities:
Held-to-maturity,
at adjusted cost
(approximate fair
value $655,768,     740,738        773,016       797,149       807,804       791,569
$715,710, $728,479,
$729,974, and
$715,608)
Available-for-sale, 3,127,192      3,167,590     3,223,086     3,230,795     3,970,602
at fair value
Trading account, at 13,963         20,539        19,033        40,273        49,782
fair value
                    3,881,893      3,961,145     4,039,268     4,078,872     4,811,953
Loans held for sale 220,240        139,245       184,579       201,590       159,300
Loans, net of
unearned income and
fees:
Loans and leases    36,582,253     36,231,104    35,903,475    36,393,782    35,924,054
FDIC-supported      588,566        642,246       687,126       750,870       800,454
loans
                    37,170,819     36,873,350    36,590,601    37,144,652    36,724,508
Less allowance for  925,341        971,716       1,010,059     1,049,958     1,148,903
loan losses
Loans, net of       36,245,478     35,901,634    35,580,542    36,094,694    35,575,605
allowance
Other
noninterest-bearing 874,903        867,882       875,037       865,231       860,045
investments
Premises and        709,188        714,913       715,815       719,276       726,503
equipment, net
Goodwill            1,015,129      1,015,129     1,015,129     1,015,129     1,015,129
Core deposit and    55,034         59,277        63,538        67,830        72,571
other intangibles
Other real estate   118,190        144,816       158,592       153,178       203,173
owned
Other assets        1,426,271      1,507,594     1,499,588     1,605,905     1,721,101
                    $  53,087,001  $ 53,407,012  $ 52,896,307  $ 53,149,109  $ 51,531,320
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing $  17,295,911  $ 16,498,248  $ 16,185,140  $ 16,110,857  $ 14,911,729
demand
Interest-bearing:
Savings and NOW     7,685,192      7,505,841     7,406,910     7,159,101     6,711,002
Money market        14,284,870     14,439,389    14,813,495    14,616,740    14,576,527
Time                3,107,815      3,211,942     3,326,717     3,413,550     3,536,755
Foreign             1,398,749      1,504,827     1,366,826     1,575,361     1,627,135
                    43,772,537     43,160,247    43,099,088    42,875,609    41,363,148
Securities sold,    21,708         104,882       47,404        44,486        30,070
not yet purchased
Federal funds
purchased and       451,214        759,591       486,808       608,098       630,901
security repurchase
agreements
Other short-term    6,608          7,621         19,839        70,273        125,290
borrowings
Long-term debt      2,326,659      2,274,571     2,283,121     1,954,462     1,898,439
Reserve for
unfunded lending    105,850        103,586       98,718        102,422       98,062
commitments
Other liabilities   484,170        507,151       474,551       510,531       466,493
Total liabilities   47,168,746     46,917,649    46,509,529    46,165,881    44,612,403
Shareholders'
equity:
Preferred stock,
without par value,  1,123,377      1,800,473     1,737,633     2,377,560     2,354,523
authorized
4,400,000 shares
Common stock,
without par value;
authorized
350,000,000 shares;
issued and
outstanding         4,162,001      4,157,525     4,162,522     4,163,242     4,160,697
184,156,402,
184,117,522,
184,228,178,
184,135,388, and
184,294,782 shares
Retained earnings   1,170,477      1,110,120     1,060,525     1,036,590     994,380
Accumulated other
comprehensive       (534,738)      (576,147)     (571,567)     (592,084)     (588,834)
income (loss)
Controlling
interest            5,921,117      6,491,971     6,389,113     6,985,308     6,920,766
shareholders'
equity
Noncontrolling      (2,862)        (2,608)       (2,335)       (2,080)       (1,849)
interests
Total shareholders' 5,918,255      6,489,363     6,386,778     6,983,228     6,918,917
equity
                    $  53,087,001  $ 53,407,012  $ 52,896,307  $ 53,149,109  $ 51,531,320



CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                   Three Months Ended
(In thousands,     September30,  June30,   March31,  December31,  September30,
except per share   2012           2012       2012       2011          2011
amounts)
Interest income:
Interest and fees  $   479,199    $ 478,569  $ 486,615  $   504,243   $   520,133
on loans
Interest on money  5,349          5,099      4,628      4,308         3,482
market investments
Interest on
securities:
Held-to-maturity   8,337          9,325      8,959      9,106         8,937
Available-for-sale 22,042         25,090     23,158     21,268        21,382
Trading account    110            148        338        548           462
Total interest     515,037        518,231    523,698    539,473       554,396
income
Interest expense:
Interest on        19,049         20,823     23,413     26,645        31,093
deposits
Interest on
short-term         193            256        779        1,221         1,501
borrowings
Interest on        51,597         65,165     57,207     49,699        51,207
long-term debt
Total interest     70,839         86,244     81,399     77,565        83,801
expense
Net interest       444,198        431,987    442,299    461,908       470,595
income
Provision for loan (1,889)        10,853     15,664     (1,476)       14,553
losses
Net interest
income after       446,087        421,134    426,635    463,384       456,042
provision for loan
losses
Noninterest
income:
Service charges
and fees on        44,951         43,426     43,532     42,873        44,154
deposit accounts
Other service
charges,           38,642         38,554     34,226     38,539        45,308
commissions and
fees
Trust and wealth   6,521          8,057      6,374      6,481         6,269
management income
Capital markets
and foreign        6,026          7,342      5,734      8,106         7,729
exchange
Dividends and
other investment   11,686         21,542     9,480      7,805         9,356
income
Loan sales and     10,695         10,287     8,352      6,058         6,165
servicing income
Fair value and
nonhedge           (5,820)        (6,784)    (4,400)    (4,677)       (5,718)
derivative loss
Equity securities  2,683          107        9,145      1,961         5,289
gains, net
Fixed income
securities gains,  3,046          5,519      720        1,288         13,035
net
Impairment losses
on investment
securities:
Impairment losses
on investment      (3,876)        (24,026)   (18,273)   (12,351)      (55,530)
securities
Noncredit-related
losses on
securities not
expected to be     1,140          16,718     8,064      265           42,196
sold (recognized
in other
comprehensive
income)
Net impairment
losses on          (2,736)        (7,308)    (10,209)   (12,086)      (13,334)
investment
securities
Other              3,495          2,280      4,045      1,956         2,789
Total noninterest  119,189        123,022    106,999    98,304        121,042
income
Noninterest
expense:
Salaries and       220,223        220,765    224,634    220,290       216,855
employee benefits
Occupancy, net     28,601         28,169     27,951     27,899        29,040
Furniture and      27,122         27,302     26,792     27,036        26,852
equipment
Other real estate  207            6,440      7,810      14,936        20,564
expense
Credit related     13,316         12,415     13,485     14,213        15,379
expense
Provision for
unfunded lending   2,264          4,868      (3,704)    4,360         (2,202)
commitments
Legal and
professional       12,749         12,947     11,096     14,974        8,897
services
Advertising        7,326          6,618      5,807      7,780         6,511
FDIC premiums      11,278         10,444     10,919     12,012        12,573
Amortization of
core deposit and   4,241          4,262      4,291      4,741         4,773
other intangibles
Other              67,648         67,426     63,291     76,799        69,776
Total noninterest  394,975        401,656    392,372    425,040       409,018
expense
Income before      170,301        142,500    141,262    136,648       168,066
income taxes
Income taxes       60,704         51,036     51,859     47,877        59,348
Net income         109,597        91,464     89,403     88,771        108,718
Net loss
applicable to      (254)          (273)      (273)      (248)         (375)
noncontrolling
interests
Net income
applicable to      109,851        91,737     89,676     89,019        109,093
controlling
interest
Preferred stock    (47,529)       (36,522)   (64,187)   (44,599)      (43,928)
dividends
Net earnings
applicable to      $   62,322     $ 55,215   $ 25,489   $   44,420    $   65,165
common
shareholders
Weighted average common shares
outstanding during the period:
Basic shares       183,237        182,985    182,798    182,703       182,676
Diluted shares     183,383        183,137    182,964    182,823       182,858
Net earnings per
common share:
Basic              $   0.34       $ 0.30     $ 0.14     $   0.24      $   0.35
Diluted            0.34           0.30       0.14       0.24          0.35



Loans Balances by Portfolio Type

(Unaudited)
                           September  June 30,  March 31,  December  September
(In millions)              30,        2012      2012       31,       30,
                           2012                            2011      2011
Commercial:
Commercial and industrial  $  10,748  $ 10,383  $  10,157  $ 10,335  $  9,733
Leasing                    405        406       394        380       366
Owner occupied             7,669      7,811     7,887      8,159     8,326
Municipal                  469        477       441        441       440
Total commercial           19,291     19,077    18,879     19,315    18,865
Commercial real estate:
Construction and land      1,956      2,099     2,100      2,265     2,467
development
Term                       8,140      8,011     8,070      7,883     7,723
Total commercial real      10,096     10,110    10,170     10,148    10,190
estate
Consumer:
Home equity credit line    2,175      2,181     2,167      2,187     2,161
1-4 family residential     4,181      4,019     3,875      3,921     3,891
Construction and other     320        328       316        306       303
consumer real estate
Bankcard and other         295        284       274        291       278
revolving plans
Other                      224        232       223        226       236
Total consumer             7,195      7,044     6,855      6,931     6,869
FDIC-supported loans ^1    589        642       687        751       801
Total loans                $  37,171  $ 36,873  $  36,591  $ 37,145  $  36,725

^1 FDIC-supported loans represent loans acquired from the FDIC subject to loss
sharing agreements.



FDIC-Supported Loans – Effect of Higher Accretion

 and Impact on FDIC Indemnification Asset

(Unaudited)
                   September                                   
(In thousands)     30,        June30,
                   2012       2012      March31,  December31,  September30,
                                        2012       2011          2011
Balance sheet:
Change in assets
from reestimation
of cash flows –
increase
(decrease):
FDIC-supported     $  17,594  $ 14,761  $  13,171  $   17,003    $    20,642
loans
FDIC
indemnification    (14,401)   (11,233)  (10,002)   (13,126)      (15,431)
asset (included
in other assets)
Balance at end of
period:
FDIC-supported     588,566    642,246   687,126    750,870       800,454
loans
FDIC
indemnification    100,004    117,167   123,862    137,719       151,164
asset (included
in other assets)
                  Three Months Ended
                   September            
(In thousands)     30,        June30,             December31,  September30,
                   2012       2012      March31,  2011          2011
                                        2012
Statement of
income:
Interest income:
Interest and fees  $  17,594  $ 14,761  $  13,171  $   17,003    $    20,642
on loans
Noninterest
expense:
Other noninterest  14,401     11,233    10,002     13,126        15,431
expense
Net increase in    $  3,193   $ 3,528   $  3,169   $   3,877     $    5,211
pretax income







Nonperforming Lending-Related Assets

(Unaudited)
(Amounts in     September  June 30,   March 31,    December     September
thousands)      30,        2012       2012         31,          30,
                2012                               2011         2011
Nonaccrual      $ 699,941  $ 771,510  $ 849,543    $ 885,608    $ 1,038,803
loans
Other real      106,356    125,142    129,676      128,874      170,023
estate owned
Nonperforming
lending-related
assets,         806,297    896,652    979,219      1,014,482    1,208,826
excluding
FDIC-supported
assets
FDIC-supported
nonaccrual      19,465     21,980     22,623       24,267       29,082
loans
FDIC-supported
other real      11,834     19,674     28,916       24,304       33,150
estate owned
FDIC-supported
nonperforming   31,299     41,654     51,539       48,571       62,232
assets
Total
nonperforming   $ 837,596  $ 938,306  $ 1,030,758  $ 1,063,053  $ 1,271,058
lending-related
assets
Ratio of
nonperforming
lending-related
assets to loans 2.23%      2.53%      2.79%        2.83%        3.43%
1 and leases
and other real
estate owned
Accruing loans
past due 90
days or more,   $ 14,508   $ 29,460   $ 38,172     $ 19,145     $ 15,863
excluding
FDIC-supported
loans
Accruing
FDIC-supported  60,913     70,453     76,945       74,611       85,714
loans past due
90 days or more
Ratio of
accruing loans
past due 90     0.20%      0.27%      0.31%        0.25%        0.28%
days or more to
loans 1 and
leases
Nonaccrual
loans and
accruing loans  $ 794,827  $ 893,403  $ 987,283    $ 1,003,631  $ 1,169,462
past due 90
days or more
Ratio of
nonaccrual
loans and
accruing loans  2.13%      2.41%      2.68%        2.69%        3.17%
past due 90
days or more to
loans 1 and
leases
Accruing loans
past due 30 -
89 days,        $ 143,539  $ 142,501  $ 171,224    $ 183,976    $ 174,250
excluding
FDIC-supported
loans
Accruing
FDIC-supported  15,462     15,519     13,899       24,691       13,816
loans past due
30 - 89 days
Restructured
loans included  207,089    227,568    276,669      295,825      308,159
in nonaccrual
loans
Restructured
loans on        421,055    393,360    401,554      448,109      430,253
accrual
Classified
loans,
excluding       1,810,099  1,880,932  2,076,220    2,056,472    2,361,574
FDIC-supported
loans



^1 Includes loans held for sale.



Allowance for Credit Losses

(Unaudited)
               Three Months Ended
(Amounts in    September    June 30,     March 31,    December     September
thousands)     30,          2012         2012         31,          30,
               2012                                   2011         2011
Allowance for
Loan Losses
Balance at
beginning of   $ 971,716    $ 1,010,059  $ 1,049,958  $ 1,148,903  $ 1,237,733
period
Add:
Provision for  (1,889)      10,853       15,664       (1,476)      14,553
losses
Adjustment for
FDIC-supported (5,908)      (5,856)      (1,057)      (2,655)      (1,520)
loans
Deduct:
Gross loan and
lease          (58,781)     (73,685)     (80,014)     (120,599)    (129,146)
charge-offs
Recoveries     20,203       30,345       25,508       25,785       27,283
Net loan and
lease          (38,578)     (43,340)     (54,506)     (94,814)     (101,863)
charge-offs
Balance at end $ 925,341    $ 971,716    $ 1,010,059  $ 1,049,958  $ 1,148,903
of period
Ratio of
allowance for
loan losses to 2.49%        2.64%        2.76%        2.83%        3.13%
loans and
leases, at
period end
Ratio of
allowance for
loan losses to 128.63%      122.46%      115.81%      115.40%      107.59%
nonperforming
loans, at
period end
Annualized
ratio of net
loan and lease 0.42%        0.47%        0.59%        1.03%        1.11%
charge-offs to
average loans
Reserve for
Unfunded
Lending
Commitments
Balance at
beginning of   $ 103,586    $ 98,718     $ 102,422    $ 98,062     $ 100,264
period
Provision
charged        2,264        4,868        (3,704)      4,360        (2,202)
(credited) to
earnings
Balance at end $ 105,850    $ 103,586    $ 98,718     $ 102,422    $ 98,062
of period
Total
Allowance for
Credit Losses
Allowance for  $ 925,341    $ 971,716    $ 1,010,059  $ 1,049,958  $ 1,148,903
loan losses
Reserve for
unfunded       105,850      103,586      98,718       102,422      98,062
lending
commitments
Total
allowance for  $ 1,031,191  $ 1,075,302  $ 1,108,777  $ 1,152,380  $ 1,246,965
credit losses
Ratio of total
allowance for
credit losses
to loans and   2.77%        2.92%        3.03%        3.10%        3.40%
leases
outstanding,
at period end







Nonaccrual Loans by Portfolio Type

(Excluding FDIC-Supported Loans)

(Unaudited)
                   September  June30,  March31,  December31,  September30,
(In millions)      30,        2012      2012       2011          2011
                   2012
Loans held for     $   —      $   —     $   —      $     18      $    18
sale
Commercial:
Commercial and     103        133       149        127           176
industrial
Leasing            1          1         1          2             1
Owner occupied     223        240       245        239           268
Municipal          6          —         —          —             —
Total commercial   333        374       395        368           445
Commercial real
estate:
Construction and   125        115       148        220           245
land development
Term               155        182       191        156           189
Total commercial   280        297       339        376           434
real estate
Consumer:
Home equity        12         14        17         18            15
credit line
1-4 family         66         76        87         91            108
residential
Construction and
other consumer     6          8         8          12            16
real estate
Bankcard and
other revolving    1          1         1          —             —
plans
Other              2          2         3          3             3
Total consumer     87         101       116        124           142
Total nonaccrual   $   700    $   772   $   850    $     886     $    1,039
loans



Net Charge-Offs by Portfolio Type

(Unaudited)
                   September  June30,  March31,  December31,  September30,
(In millions)      30,        2012      2012       2011          2011
                   2012
Commercial:
Commercial and     $    3     $   9     $    17    $     9       $     27
industrial
Leasing            —          —         —          —             —
Owner occupied     10         10        8          33            27
Municipal          —          —         —          —             —
Total commercial   13         19        25         42            54
Commercial real
estate:
Construction and   —          (2)       (2)        13            17
land development
Term               16         13        18         24            15
Total commercial   16         11        16         37            32
real estate
Consumer:
Home equity        2          6         4          6             4
credit line
1-4 family         4          5         7          7             5
residential
Construction and
other consumer     1          —         1          1             4
real estate
Bankcard and
other revolving    2          1         2          2             3
plans
Other              —          1         —          —             —
Total consumer     9          13        14         16            16
loans
Total net          $    38    $   43    $    55    $     95      $     102
charge-offs



CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)
                    Three Months Ended
                    September30, 2012     June30, 2012          March31, 2012
                    Average       Average  Average       Average  Average       Average
(In thousands)      balance                balance                balance
                                  rate                   rate                   rate
ASSETS
Money market        $ 7,990,243   0.27  %  $ 7,786,191   0.26  %  $ 7,282,245   0.26  %
investments
Securities:
Held-to-maturity    758,761       5.32  %  797,843       5.72  %  799,741       5.53  %
Available-for-sale  3,052,559     2.93  %  3,084,771     3.34  %  3,093,827     3.08  %
Trading account     13,691        3.20  %  18,877        3.15  %  41,189        3.30  %
Total securities    3,825,011     3.41  %  3,901,491     3.82  %  3,934,757     3.58  %
Loans held for sale 183,224       3.52  %  157,308       3.99  %  174,902       3.45  %
Loans ^1:
Loans and leases    36,494,927    4.94  %  36,067,463    5.07  %  36,078,917    5.17  %
FDIC-supported      613,710       17.27 %  661,597       14.84 %  712,877       13.29 %
loans
Total loans         37,108,637    5.14  %  36,729,060    5.25  %  36,791,794    5.33  %
Total
interest-earning    49,107,115    4.21  %  48,574,050    4.33  %  48,183,698    4.41  %
assets
Cash and due from   1,000,159              1,025,681              1,122,979
banks
Allowance for loan  (962,950)              (1,004,879)            (1,046,709)
losses
Goodwill            1,015,129              1,015,129              1,015,129
Core deposit and    57,345                 61,511                 65,837
other intangibles
Other assets        3,150,014              3,218,519              3,239,161
Total assets        $ 53,366,812           $ 52,890,011           $ 52,580,095
LIABILITIES
Interest-bearing
deposits:
Savings and NOW     $ 7,567,020   0.16  %  $ 7,435,000   0.17  %  $ 7,200,170   0.20  %
Money market        14,458,871    0.26  %  14,522,941    0.28  %  14,701,771    0.32  %
Time                3,162,165     0.69  %  3,264,853     0.75  %  3,369,323     0.79  %
Foreign             1,472,437     0.29  %  1,490,695     0.35  %  1,408,409     0.40  %
Total
interest-bearing    26,660,493    0.28  %  26,713,489    0.31  %  26,679,673    0.35  %
deposits
Borrowed funds:
Securities sold,    2,062         —     %  6,128         1.90  %  22,758        3.38  %
not yet purchased
Federal funds
purchased and       453,209       0.14  %  474,026       0.14  %  528,662       0.12  %
security repurchase
agreements
Other short-term    8,273         1.73  %  13,290        2.00  %  48,394        3.61  %
borrowings
Long-term debt      2,297,409     8.93  %  2,329,608     11.25 %  1,991,776     11.55 %
Total borrowed      2,760,953     7.46  %  2,823,052     9.32  %  2,591,590     9.00  %
funds
Total
interest-bearing    29,421,446    0.96  %  29,536,541    1.17  %  29,271,263    1.12  %
liabilities
Noninterest-bearing 16,817,085             16,228,973             15,691,499
deposits
Other liabilities   606,973                582,743                619,231
Total liabilities   46,845,504             46,348,257             45,581,993
Shareholders'
equity:
Preferred equity    1,765,162              1,830,845              2,355,549
Common equity       4,758,858              4,713,318              4,644,722
Controlling
interest            6,524,020              6,544,163              7,000,271
shareholders'
equity
Noncontrolling      (2,712)                (2,409)                (2,169)
interests
Total shareholders' 6,521,308              6,541,754              6,998,102
equity
Total liabilities
and shareholders'   $ 53,366,812           $ 52,890,011           $ 52,580,095
equity
Spread on average
interest-bearing                  3.25  %                3.16  %                3.29  %
funds
Net yield on
interest-earning                  3.63  %                3.62  %                3.73  %
assets

^1 Net of unearned income and fees, net of related costs. Loans include
nonaccrual and restructured loans.



GAAP to Non-GAAP Reconciliation

(Unaudited)
                                 Three Months Ended
(Amounts in thousands)           September30, 2012     June30, 2012
                                 Amount     Diluted     Amount     Diluted
                                            EPS                    EPS
   Net Earnings Excluding the
   Effects of the Discount
1. Amortization on Convertible
   Subordinated Debt and
   Additional Accretion on
   Acquired Loans
   Net earnings applicable to    $ 62,322   $ 0.34      $ 55,215   $ 0.30
   common shareholders (GAAP)
   Addback for the after-tax
   impact of:
   Discount amortization on      6,495      0.03        6,584      0.04
   convertible subordinated debt
   Accelerated discount
   amortization on convertible   1,615      0.01        13,175     0.07
   subordinated debt
   Additional accretion of
   interest income on acquired   (1,850)    (0.01)      (2,035)    (0.01)
   loans, net of expense
   Subtotal                      6,260      0.03        17,724     0.10
   Net earnings excluding the
   effects of the discount
   amortization on convertible   $ 68,582   $ 0.37      $ 72,939   $ 0.40
   subordinated debt and
   additional accretion on
   acquired loans (non-GAAP)
                                 Three Months Ended
                                 September30, 2012     June30, 2012
   Core Net Interest Income
2. (NII)/Net Interest Margin     NII        NIM         NII        NIM
   (NIM)
   Net interest income/net
   interest margin as reported   $ 444,198  3.63   % ^1 $ 431,987  3.62   % ^1
   (GAAP)
   Addback for the pretax impact
   of:
   Discount amortization on      10,518     0.09   %    10,663     0.09   %
   convertible subordinated debt
   Accelerated discount
   amortization on convertible   1,987      0.02   %    16,202     0.13   %
   subordinated debt
   Additional accretion of
   interest income on acquired   (17,594)   (0.14) %    (14,761)   (0.12) %
   loans
   Core net interest income/net  $ 439,109  3.60   %    $ 444,091  3.72   %
   interest margin (non-GAAP)

^1 Calculation of net interest margin is based on taxable-equivalent net
interest income.

This Press Release presents the following non-GAAP financial measures: 1. Net
earnings excluding the effects of the discount amortization on convertible
subordinated debt and additional accretion on acquired loans, and 2. Core net
interest income/net interest margin. These non-GAAP financial measures exclude
the effects of the following adjustments: (i) periodic discount amortization
on convertible subordinated debt; (ii) accelerated discount amortization on
convertible subordinated debt which has been converted; and (iii) additional
accretion of interest income on acquired loans based on increased projected
cash flows (net of related expense in 1.).

The identified adjustments to reconcile from the applicable GAAP financial
measures to the non-GAAP financial measures are included where applicable in
financial results presented in accordance with GAAP. The Company considers
these adjustments to be relevant to ongoing operating results.

The Company believes that excluding the amounts associated with these
adjustments to present the non-GAAP financial measures provides a meaningful
base for period-to-period and company-to-company comparisons, which will
assist investors and analysts in analyzing the operating results of the
Company and in predicting future performance. These non-GAAP financial
measures are used by management and the Board of Directors to assess the
performance of the Company's business for evaluating bank reporting segment
performance, for presentations of Company performance to investors, and for
other reasons as may be requested by investors and analysts. The Company
further believes that presenting these non-GAAP financial measures will permit
investors and analysts to assess the performance of the Company on the same
basis as that applied by management and the Board of Directors.

Non-GAAP financial measures have inherent limitations, are not required to be
uniformly applied, and are not audited. Although these non-GAAP financial
measures are frequently used by stakeholders to evaluate a company, they have
limitations as an analytical tool and should not be considered in isolation or
as a substitute for analysis of results reported under GAAP.

SOURCE Zions Bancorporation

Website: http://www.zionsbancorporation.com
Contact: James Abbott, +1-801-524-4787