Zions Bancorporation Reports Earnings Of $0.19 Per Diluted Common Share For Fourth Quarter 2012

 Zions Bancorporation Reports Earnings Of $0.19 Per Diluted Common Share For
                             Fourth Quarter 2012

PR Newswire

SALT LAKE CITY, Jan. 28, 2013

SALT LAKE CITY, Jan.28, 2013 /PRNewswire/ --Zions Bancorporation (NASDAQ:
ZION) ("Zions" or "the Company") today reported fourth quarter net earnings
applicable to common shareholders of $35.6 million or $0.19 per diluted common
share, compared to $62.3 million or $0.34 per diluted share for the third
quarter of 2012. Net earnings were adversely affected this quarter by a net
amount of $73.6 million pretax, or $0.25 per diluted share, consisting of
$83.8 million of other-than-temporary impairment ("OTTI") on collateralized
debt obligation ("CDO") securities, partially offset by $10.2 million of CDO
securities gains.

Fourth Quarter 2012 Highlights

  oLoans and leases, excluding FDIC-supported loans, increased $463 million
    to $37.1 billion at December31, 2012. Average loans and leases, excluding
    FDIC-supported loans, increased only $100 million, as most of the loan
    growth occurred near quarter-end.
  oNet loan and lease charge-offs declined 51% and nonperforming
    lending-related assets declined 11% compared to the third quarter. The
    continued improvement in credit quality resulted in a fourth quarter
    negative provision for loan losses of $10 million.
  oThe OTTI on CDO securities was primarily attributable to significant
    changes in modeling assumptions related to prepayment speeds and PDs on
    certain deferring bank holding company trust preferred securities.
  oTangible common equity per common share improved $0.71 to $20.95 from
    $20.24 in the third quarter.

"Credit quality and net interest income exceeded our expectations for the
fourth quarter of 2012," said Harris H. Simmons, chairman and chief executive
officer. Mr. Simmons continued, "We expect continued reduction in problem
loans in the near term, along with relatively stable net interest income,
resulting from moderate loan growth offset by some continued net interest
margin pressure." Mr. Simmons concluded, "Over the next several quarters, we
expect to execute several capital actions that will significantly reduce
interest expense and dividends associated with legacy debt and preferred
stock, which should have a favorable effect on our return on equity."

Reclassifications in Statement of Income

For the fourth quarter of 2012, approximately $9 million of credit card
interchange fees were reclassified from interest and fees on loans to other
service charges, commissions and fees. In addition, $3 million of income on
factored receivables was reclassified from other service charges, commissions
and fees to interest and fees on loans. These reclassifications reduced net
interest income by approximately $6 million and the net interest margin by 5
basis points for the fourth quarter of 2012. At December31, 2012, the
reclassifications related to factored receivables also increased loan and
lease balances by approximately $96 million and the allowance for loan losses
by $2 million, with a corresponding reduction in other assets of $94 million.
The changes were made primarily to conform with prevailing reporting practices
in the banking industry. Current and prior period amounts for all periods
presented throughout this press release have been adjusted where appropriate
so that amounts are on a comparable basis. There was no change in net earnings
for any prior period presented.

Loans

Loans and leases, excluding FDIC-supported loans, increased $463 million on a
net basis to $37.1 billion at December31, 2012, compared to $36.7 billion at
September30, 2012. The increases were predominantly in commercial and
industrial and 1-4 family residential loans and were widespread
geographically. Decreases of $174 million in commercial owner occupied,
construction and land development, and term commercial real estate loans
partially offset increases in other loan categories. Most of this increase
occurred during the month of December. Average loans and leases, excluding
FDIC-supported loans, increased $100 million to $36.7 billion during the
fourth quarter of 2012, compared to $36.6 billion during the third quarter of
2012.

Deposits

Average total deposits for the fourth quarter of 2012 increased $1.4 billion,
or 3.3%, to $44.9 billion, compared to $43.5 billion for the third quarter of
2012. The increase resulted primarily from a higher level of average
noninterest-bearing demand deposits, primarily in nonpersonal accounts, for
the fourth quarter of 2012, which were $17.9 billion compared to $16.8 billion
for the third quarter of 2012. The ratio of average loans to average deposits
was 83% at December31, 2012, compared to 86% at September30, 2012.

Debt and Shareholders' Equity

The tangible common equity ratio was 7.09% at December31, 2012, compared to
7.17% at September30, 2012. The decline was primarily due to a 5% increase in
total tangible assets, driven primarily by a 24% increase in cash-related
balances that resulted from increased deposits late in the year. The estimated
common equity tier 1 capital ratio was 9.78% at December31, 2012, compared to
9.86% at September30, 2012.

The $89 million after-tax improvement in accumulated other comprehensive
income (loss) ("AOCI") during the fourth quarter related primarily to CDO
securities and consisted of $52 million due to the reduction of unrealized
losses in AOCI from the OTTI discussed subsequently and $37 million due
primarily to net fair value increases.

Net Interest Income

Net interest income (adjusted for the previously-discussed reclassifications)
decreased 2% to $430 million for the fourth quarter of 2012, compared to $438
million for the third quarter of 2012. Net interest income during the fourth
quarter was reduced by approximately $12 million for the discount amortization
resulting from subordinated debt conversions and increased by $13 million from
additional accretion on acquired FDIC-supported loans. The net interest margin
decreased to 3.47% in the fourth quarter of 2012, compared to 3.58% in the
third quarter of 2012. The decrease in the margin continues to reflect both
increases in cash equivalents and other low-yielding assets, as well as lower
yields on resetting or maturing older loans, which is expected to continue.
New loan pricing has been relatively stable in recent months. The cost of
interest-bearing deposits continued to decline and was 0.25% in the fourth
quarter compared to 0.28% in the third quarter.

Noninterest Income

Noninterest income for the fourth quarter of 2012 was $54 million, compared to
$125 million for the third quarter of 2012. The decrease was primarily due to
the increased OTTI, partially offset by increased gains on CDO securities, as
discussed subsequently. Excluding the incremental pretax effect of these
items compared to the third quarter, noninterest income was approximately $128
million in the fourth quarter.

CDO Investment Securities

During the fourth quarter of 2012, the Company recognized credit-related OTTI
on CDOs of $83.8 million or $0.28 per diluted share, compared to $2.7 million
or $0.01 per diluted share during the third quarter of 2012. The significant
increase in OTTI this quarter compared to recent quarters resulted from (1)
increasing our assumed probabilities of default ("PDs") for bank holding
company issuers of trust preferred securities that are still deferring, and
(2) increasing our near-term prepayment assumptions for some banks. This
quarter, the Company observed greater regulatory and restructuring risk than
previously modeled in those deferrals that have not yet chosen to or been
allowed to resume payments on trust preferred securities. Approximately 61% of
the OTTI was attributable solely to the increased PDs. Also this quarter the
Company observed a significant increase in prepayments from small bank holding
companies, which led us to increase the assumed prepayment rates on issuers
with less than $15 billion in assets. The Company also recognized $10.2
million or $0.03 per diluted share in gains during the quarter, compared to
$3.0 million or $0.01 per diluted share in the third quarter, from cash
principal payments on CDOs previously written down.

The following table stratifies the CDOs into performing tranches without
credit impairment and nonperforming tranches at December31, 2012:



^

               December31, 2012
                                                                             % of carrying value

                                                       Net                    to par
(Amounts in                                            unrealized  Weighted            
millions)      No. of    Par      Amortized  Carrying  losses      average
                                                       recognized  discount   December  September  Change
              tranches  amount   cost       value     in AOCI ^1  rate ^2    31,       30,
                                                                              2012      2012
Performing
CDOs
Predominantly                                                                                      
bank CDOs      28        $ 811    $  727     $  538    $   (189)   7.8%       66%       72%
                                                                                                   (6)%
Insurance-only                                                                                     
CDOs           22        454      449        327       (122)       8.6%       72%       72%
                                                                                                   —
                                                                                                   
Other CDOs     6         54       43         38        (5)         9.4%       70%       78%
                                                                                                   (8)%
Total                                                                                              
performing     56        1,319    1,219      903       (316)       8.1%       68%       72%
CDOs                                                                                               (4)%
Nonperforming
CDOs ^3
CDOs credit                                                                                        
impaired prior 18        369      251        109       (142)       10.7%      30%       22%
to last 12                                                                                         8%
months
CDOs credit                                                                                        
impaired       39        732      441        181       (260)       9.6%       25%       14%
during last 12                                                                                     11%
months
Total                                                                                              
nonperforming  57        1,101    692        290       (402)       10.0%      26%       19%
CDOs                                                                                               7%
                                                                                                   
Total CDOs     113       $ 2,420  $  1,911   $  1,193  $   (718)   9.0%       49%       49%
                                                                                                   —

^1 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.

The net unrealized pretax losses in AOCI improved to $718 million in the
fourth quarter of 2012 from $857 million in the third quarter of 2012 due to
OTTI and to significant improvement in credit spreads for junior tranches.

Noninterest Expense

Noninterest expense for the fourth quarter of 2012 was $407 million compared
to $395 million for the third quarter of 2012. The increase was due primarily
to costs for legal-related matters and increased other real estate expense.

Asset Quality

Net loan and lease charge-offs decreased 51% to $19 million for the fourth
quarter of 2012, compared to $38 million for the third quarter of 2012.The
$19million includes $5 million resulting from the new OCC regulatory guidance
that requires the write-down of borrowers' loans discharged in a Chapter 7
bankruptcy even when the loans are performing.Gross charge-offs declined 7%
compared to the third quarter and have declined 55% compared to the year-ago
period. Recoveries increased to $36 million for the fourth quarter of 2012,
compared to $20 million for the third quarter of 2012. Net charge-offs
declined primarily in commercial- and commercial real estate-related loans.

Nonperforming lending-related assets declined 11% to $746 million at
December31, 2012 from $838 million at September30, 2012. Nonaccrual loans
declined 10% to $647 million at December31, 2012 (including $6 million
resulting from the new OCC guidance) from $719 million at September30, 2012.
The ratio of nonperforming lending-related assets to loans and leases and
other real estate owned decreased to 1.96% at December31, 2012, compared to
2.23% at September30, 2012.

Classified loans, excluding FDIC-supported loans, decreased approximately 2%
to $1.77 billion at December31, 2012, compared to $1.81 billion at
September30, 2012. Approximately 79% of classified loans were current as to
principal and interest for the fourth quarter of 2012, compared to 76% for the
third quarter of 2012.

The provision (credit) for loan losses was $(10.4) million for the fourth
quarter of 2012, compared to $(1.9) million for the third quarter of 2012. The
allowance for credit losses was $1.0 billion, or 2.66% of loans and leases at
December31, 2012, essentially unchanged from $1.0 billion, or 2.77% of loans
and leases at September30, 2012.

Conference Call

Zions will host a conference call to discuss these fourth quarter results at
5:30 p.m. ET this afternoon (January28, 2013). 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 83645774,
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, January28, 2013,
until midnight ET on Monday, February5, 2013, 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 480 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  December31,    September30,  June30,       March31,      December31,
share, and ratio   2012            2012           2012           2012           2011
data)
PER COMMON SHARE
Dividends          $   0.01        $  0.01        $  0.01        $  0.01        $  0.01
Book value per     26.73           26.05          25.48          25.25          25.02
common share ^1
Tangible common
equity per common  20.95           20.24          19.65          19.39          19.14
share ^1
SELECTED RATIOS
Return on average  0.43         %  0.82        %  0.70        %  0.69        %  0.67        %
assets
Return on average  2.91         %  5.21        %  4.71        %  2.21        %  3.84        %
common equity
Tangible return on
average tangible   4.07         %  7.02        %  6.41        %  3.18        %  5.38        %
common equity
Net interest       3.47         %  3.58        %  3.56        %  3.69        %  3.81        %
margin
Capital Ratios
Tangible common    7.09         %  7.17        %  6.91        %  6.89        %  6.77        %
equity ratio ^1
Tangible equity    9.15         %  9.32        %  10.35       %  10.24       %  11.33       %
ratio ^1
Average equity to  11.03        %  12.22       %  12.37       %  13.31       %  13.27       %
average assets
Risk-Based Capital
Ratios ^1,2
Common equity tier 9.78         %  9.86        %  9.78        %  9.71        %  9.57        %
1 capital
Tier 1 leverage    10.95        %  11.05       %  12.31       %  12.17       %  13.40       %
Tier 1 risk-based  13.35        %  13.49       %  15.03       %  14.83       %  16.13       %
capital
Total risk-based   15.02        %  15.25       %  16.89       %  16.76       %  18.06       %
capital
Taxable-equivalent
net interest       $   434,252     $  442,595     $  430,967     $  442,340     $  462,457
income
Weighted average
common and         183,456,109     183,382,650    183,136,631    182,963,828    182,823,190
common-equivalent
shares outstanding
Common shares      184,199,198     184,156,402    184,117,522    184,228,178    184,135,388
outstanding ^1

^1 At period end.
^2 Ratios for December31, 2012 are estimates.



CONSOLIDATED BALANCE SHEETS
(In thousands,      December31,  September30,  June30,      March31,     December31,
except share        2012          2012           2012          2012          2011
amounts)
                    (Unaudited)   (Unaudited)    (Unaudited)   (Unaudited)
ASSETS
Cash and due from   $ 1,841,907   $  1,060,918   $ 1,124,673   $ 1,082,186   $ 1,224,350
banks
Money market
investments:
Interest-bearing    5,978,978     5,519,463      7,887,175     7,629,399     7,020,895
deposits
Federal funds sold
and security resell 2,775,354     1,960,294      83,529        52,634        102,159
agreements
Investment
securities:
Held-to-maturity,
at adjusted cost
(approximate fair
value $674,741,     756,909       740,738        773,016       797,149       807,804
$655,768, $715,710,
$728,479, and
$729,974)
Available-for-sale, 3,091,310     3,127,192      3,167,590     3,223,086     3,230,795
at fair value
Trading account, at 28,290        13,963         20,539        19,033        40,273
fair value
                    3,876,509     3,881,893      3,961,145     4,039,268     4,078,872
Loans held for sale 251,651       220,240        139,245       184,579       201,590
Loans, net of
unearned income and
fees:
Loans and leases    37,137,006    36,674,288     36,319,596    35,998,928    36,507,039
FDIC-supported      528,241       588,566        642,246       687,126       750,870
loans
                    37,665,247    37,262,854     36,961,842    36,686,054    37,257,909
Less allowance for  896,087       927,068        973,443       1,011,786     1,051,685
loan losses
Loans, net of       36,769,160    36,335,786     35,988,399    35,674,268    36,206,224
allowance
Other
noninterest-bearing 855,462       874,903        867,882       875,037       865,231
investments
Premises and        708,882       709,188        714,913       715,815       719,276
equipment, net
Goodwill            1,014,129     1,015,129      1,015,129     1,015,129     1,015,129
Core deposit and    50,818        55,034         59,277        63,538        67,830
other intangibles
Other real estate   98,151        118,190        144,816       158,592       153,178
owned
Other assets        1,290,917     1,335,963      1,420,829     1,405,862     1,494,375
                    $ 55,511,918  $  53,087,001  $ 53,407,012  $ 52,896,307  $ 53,149,109
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing $ 18,469,458  $  17,295,911  $ 16,498,248  $ 16,185,140  $ 16,110,857
demand
Interest-bearing:
Savings and money   22,896,624    21,970,062     21,945,230    22,220,405    21,775,841
market
Time                2,962,931     3,107,815      3,211,942     3,326,717     3,413,550
Foreign             1,804,060     1,398,749      1,504,827     1,366,826     1,575,361
                    46,133,073    43,772,537     43,160,247    43,099,088    42,875,609
Securities sold,    26,735        21,708         104,882       47,404        44,486
not yet purchased
Federal funds
purchased and       320,478       451,214        759,591       486,808       608,098
security repurchase
agreements
Other short-term    5,409         6,608          7,621         19,839        70,273
borrowings
Long-term debt      2,337,113     2,326,659      2,274,571     2,283,121     1,954,462
Reserve for
unfunded lending    106,809       105,850        103,586       98,718        102,422
commitments
Other liabilities   533,660       484,170        507,151       474,551       510,531
Total liabilities   49,463,277    47,168,746     46,917,649    46,509,529    46,165,881
Shareholders'
equity:
Preferred stock,
without par value,
                    1,128,302     1,123,377      1,800,473     1,737,633     2,377,560
authorized
4,400,000 shares
Common stock,
without par value;
authorized
350,000,000 shares;
issued and
outstanding         4,166,109     4,162,001      4,157,525     4,162,522     4,163,242
184,199,198,
184,156,402,
184,117,522,
184,228,178, and
184,135,388 shares
Retained earnings   1,203,815     1,170,477      1,110,120     1,060,525     1,036,590
Accumulated other
comprehensive       (446,157)     (534,738)      (576,147)     (571,567)     (592,084)
income (loss)
Controlling
interest            6,052,069     5,921,117      6,491,971     6,389,113     6,985,308
shareholders'
equity
Noncontrolling      (3,428)       (2,862)        (2,608)       (2,335)       (2,080)
interests
Total shareholders' 6,048,641     5,918,255      6,489,363     6,386,778     6,983,228
equity
                    $ 55,511,918  $  53,087,001  $ 53,407,012  $ 52,896,307  $ 53,149,109





CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
                   Three Months Ended
(In thousands,     December31,  September30,  June30,   March 31,  December31,
except per share   2012          2012           2012       2012       2011
amounts)
Interest income:
Interest and fees  $   462,002   $   473,162    $ 472,926  $ 481,794  $  500,001
on loans
Interest on money  6,004         5,349          5,099      4,628      4,308
market investments
Interest on
securities:
Held-to-maturity   8,130         8,337          9,325      8,959      9,106
Available-for-sale 21,971        22,042         25,090     23,158     21,268
Trading account    150           110            148        338        548
Total interest     498,257       509,000        512,588    518,877    535,231
income
Interest expense:
Interest on        16,861        19,049         20,823     23,413     26,645
deposits
Interest on
short-term         178           193            256        779        1,221
borrowings
Interest on        51,261        51,597         65,165     57,207     49,699
long-term debt
Total interest     68,300        70,839         86,244     81,399     77,565
expense
Net interest       429,957       438,161        426,344    437,478    457,666
income
Provision for loan (10,401)      (1,889)        10,853     15,664     (1,426)
losses
Net interest
income after       440,358       440,050        415,491    421,814    459,092
provision for loan
losses
Noninterest
income:
Service charges
and fees on        44,492        44,951         43,426     43,532     42,873
deposit accounts
Other service
charges,           46,497        44,679         44,197     39,047     42,781
commissions and
fees
Trust and wealth   7,450         6,521          8,057      6,374      6,481
management income
Capital markets
and foreign        7,708         6,026          7,342      5,734      8,106
exchange
Dividends and
other investment   13,117        11,686         21,542     9,480      7,805
income
Loan sales and     10,595        10,695         10,287     8,352      6,058
servicing income
Fair value and
nonhedge           (4,778)       (5,820)        (6,784)    (4,400)    (4,677)
derivative loss
Equity securities
gains (losses),    (682)         2,683          107        9,145      1,961
net
Fixed income
securities gains,  10,259        3,046          5,519      720        1,288
net
Impairment losses
on investment
securities:
Impairment losses
on investment      (120,082)     (3,876)        (24,026)   (18,273)   (12,351)
securities
Noncredit-related
losses on
securities not

expected to be    36,274        1,140          16,718     8,064      265
sold (recognized
in other

comprehensive
income)
Net impairment
losses on          (83,808)      (2,736)        (7,308)    (10,209)   (12,086)
investment
securities
Other              3,309         3,495          2,280      4,045      1,956
Total noninterest  54,159        125,226        128,665    111,820    102,546
income
Noninterest
expense:
Salaries and       220,039       220,223        220,765    224,634    220,290
employee benefits
Occupancy, net     28,226        28,601         28,169     27,951     27,899
Furniture and      27,774        27,122         27,302     26,792     27,036
equipment
Other real estate  5,266         207            6,440      7,810      14,936
expense
Credit related     11,302        13,316         12,415     13,485     14,213
expense
Provision for
unfunded lending   959           2,264          4,868      (3,704)    4,360
commitments
Legal and
professional       15,717        12,749         12,947     11,096     14,974
services
Advertising        5,969         7,326          6,618      5,807      7,780
FDIC premiums      10,760        11,278         10,444     10,919     12,012
Amortization of
core deposit and   4,216         4,241          4,262      4,291      4,741
other intangibles
Other              76,786        67,648         67,426     63,291     76,749
Total noninterest  407,014       394,975        401,656    392,372    424,990
expense
Income before      87,503        170,301        142,500    141,262    136,648
income taxes
Income taxes       29,817        60,704         51,036     51,859     47,877
Net income         57,686        109,597        91,464     89,403     88,771
Net loss
applicable to      (566)         (254)          (273)      (273)      (248)
noncontrolling
interests
Net income
applicable to      58,252        109,851        91,737     89,676     89,019
controlling
interest
Preferred stock    (22,647)      (47,529)       (36,522)   (64,187)   (44,599)
dividends
Net earnings
applicable to      $   35,605    $   62,322     $ 55,215   $ 25,489   $  44,420
common
shareholders
Weighted average common shares
outstanding during the period:
Basic shares       183,300       183,237        182,985    182,798    182,703
Diluted shares     183,456       183,383        183,137    182,964    182,823
Net earnings per
common share:
Basic              $   0.19      $   0.34       $ 0.30     $ 0.14     $  0.24
Diluted            0.19          0.34           0.30       0.14       0.24





Loan Balances by Portfolio Type

(Unaudited)
(In millions)  December31,  September30,  June30,   March31,  December31,
               2012          2012           2012       2012       2011
Commercial:
Commercial and   $  11,257      $  10,840    $ 10,471   $ 10,253    $  10,448
industrial
Leasing          423            405          406        394         380
Owner occupied   7,589          7,669        7,811      7,886       8,159
Municipal        494            469          477        441         441
Total            19,763         19,383       19,165     18,974      19,428
commercial
Commercial
real estate:
Construction
and land         1,939          1,956        2,099      2,100       2,265
development
Term             8,063          8,140        8,012      8,070       7,883
Total
commercial       10,002         10,096       10,111     10,170      10,148
real estate
Consumer:
Home equity      2,178          2,175        2,181      2,167       2,187
credit line
1-4 family       4,350          4,181        4,019      3,875       3,921
residential
Construction
and other        321            320          328        316         306
consumer real
estate
Bankcard and
other            307            295          284        274         291
revolving
plans
Other            216            224          232        223         226
Total consumer   7,372          7,195        7,044      6,855       6,931
FDIC-supported   528            589          642        687         751
loans ^1
Total loans      $  37,665      $  37,263    $ 36,962   $ 36,686    $  37,258
^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)
(In thousands)  December31,   September30,   June30,     March31,    December31,
                2012           2012            2012         2012         2011
Balance sheet:
Change in
assets from
reestimation of
cash flows –
increase
(decrease):
FDIC-supported    $  12,970      $  17,594      $ 14,761     $ 13,171      $ 17,003
loans
FDIC
indemnification
asset (included   (10,610)       (14,401)       (11,233)     (10,002)      (13,126)
in other
assets)
Balance at end
of period:
FDIC-supported    528,241        588,566        642,246      687,126       750,870
loans
FDIC
indemnification
asset (included   90,074         100,004        117,167      123,862       137,719
in other
assets)
                Three Months Ended
(In thousands)  December31,   September30,   June30,     March31,    December31,
                2012           2012            2012         2012         2011
Statement of
income:
Interest
income:
Interest and      $  12,970      $  17,594      $ 14,761     $ 13,171      $ 17,003
fees on loans
Noninterest
expense:
Other
noninterest       10,610         14,401         11,233       10,002        13,126
expense
Net increase in   $  2,360       $  3,193       $ 3,528      $ 3,169       $ 3,877
pretax income





Nonperforming Lending-Related Assets

(Unaudited)
(Amounts in     December31,  September30,  June30,     March31,      December31,
thousands)      2012          2012           2012         2012           2011
Nonaccrual      $  630,810    $  699,952     $ 771,510    $ 849,543      $ 885,608
loans
Other real      90,269        106,356        125,142      129,676        128,874
estate owned
Nonperforming
lending-related
assets,
                721,079       806,308        896,652      979,219        1,014,482
excluding
FDIC-supported
assets
FDIC-supported
nonaccrual      16,661        19,454         21,980       22,623         24,267
loans
FDIC-supported
other real      7,882         11,834         19,674       28,916         24,304
estate owned
FDIC-supported
nonperforming   24,543        31,288         41,654       51,539         48,571
assets
Total
nonperforming   $  745,622    $  837,596     $ 938,306    $ 1,030,758    $ 1,063,053
lending-related
assets
Ratio of
nonperforming
lending-related
assets to loans 1.96       %  2.23        %  2.52      %  2.78        %  2.83        %
^1 and leases
and other real
estate owned
Accruing loans
past due 90
days or more,   $  9,730      $  14,508      $ 29,460     $ 38,172       $ 19,145
excluding
FDIC-supported
loans
Accruing
FDIC-supported  52,314        60,913         70,453       76,945         74,611
loans past due
90 days or more
Ratio of
accruing loans
past due 90     0.16       %  0.20        %  0.27      %  0.31        %  0.25        %
days or more to
loans ^1 and
leases
Nonaccrual
loans and
accruing loans  $  709,515    $  794,827     $ 893,403    $ 987,283      $ 1,003,631
past due 90
days or more
Ratio of
nonaccrual
loans and
accruing loans  1.87       %  2.12        %  2.41      %  2.68        %  2.68        %
past due 90
days or more to
loans ^1 and
leases
Accruing loans
past due 30 -
89 days,        $  185,422    $  143,539     $ 142,501    $ 171,224      $ 183,976
excluding
FDIC-supported
loans
Accruing
FDIC-supported  11,924        15,462         15,519       13,899         24,691
loans past due
30 - 89 days
Restructured
loans included  215,476       207,089        227,568      276,669        295,825
in nonaccrual
loans
Restructured
loans on        407,026       421,055        393,360      401,554        448,109
accrual
Classified
loans,
excluding       1,767,460     1,810,099      1,880,932    2,076,220      2,056,472
FDIC-supported
loans

^1 Includes loans held for sale.





Allowance for Credit Losses

(Unaudited)
               Three Months Ended
(Amounts in    December31,   September30,  June30,       March31,      December31,
thousands)     2012           2012           2012           2012           2011
Allowance for
Loan Losses
Balance at
beginning of   $ 927,068      $ 973,443      $ 1,011,786    $ 1,051,685    $ 1,150,580
period
Add:
Provision for  (10,401)       (1,889)        10,853         15,664         (1,426)
losses
Adjustment for
FDIC-supported (1,721)        (5,908)        (5,856)        (1,057)        (2,655)
loans
Deduct:
Gross loan and
lease          (54,709)       (58,781)       (73,685)       (80,014)       (120,599)
charge-offs
Recoveries     35,850         20,203         30,345         25,508         25,785
Net loan and
lease          (18,859)       (38,578)       (43,340)       (54,506)       (94,814)
charge-offs
Balance at end $ 896,087      $ 927,068      $ 973,443      $ 1,011,786    $ 1,051,685
of period
Ratio of
allowance for
loan losses to 2.38        %  2.49        %  2.63        %  2.76        %  2.82        %
loans and
leases, at
period end
Ratio of
allowance for
loan losses to 138.40      %  128.87      %  122.68      %  116.01      %  115.59      %
nonperforming
loans, at
period end
Annualized
ratio of net
loan and lease 0.20        %  0.41        %  0.47        %  0.59        %  1.02        %
charge-offs to
average loans
Reserve for
Unfunded
Lending
Commitments
Balance at
beginning of   $ 105,850      $ 103,586      $ 98,718       $ 102,422      $ 98,062
period
Provision
charged        959            2,264          4,868          (3,704)        4,360
(credited) to
earnings
Balance at end $ 106,809      $ 105,850      $ 103,586      $ 98,718       $ 102,422
of period
Total
Allowance for
Credit Losses
Allowance for  $ 896,087      $ 927,068      $ 973,443      $ 1,011,786    $ 1,051,685
loan losses
Reserve for
unfunded       106,809        105,850        103,586        98,718         102,422
lending
commitments
Total
allowance for  $ 1,002,896    $ 1,032,918    $ 1,077,029    $ 1,110,504    $ 1,154,107
credit losses
Ratio of total
allowance for
credit losses
to loans and   2.66        %  2.77        %  2.91        %  3.03        %  3.10        %
leases
outstanding,
at period end





Nonaccrual Loans by Portfolio Type

(Excluding FDIC-Supported Loans)

(Unaudited)
(In millions)  December31,  September30,   June30,  March31,  December31,
               2012          2012            2012      2012       2011
Loans held for   $  —           $   —         $ —        $ —        $  18
sale
Commercial:
Commercial and   91             103           133        149        127
industrial
Leasing          1              1             1          1          2
Owner occupied   206            223           240        245        239
Municipal        9              6             —          —          —
Total            307            333           374        395        368
commercial
Commercial
real estate:
Construction
and land         108            125           115        148        220
development
Term             125            155           182        191        156
Total
commercial       233            280           297        339        376
real estate
Consumer:
Home equity      14             12            14         17         18
credit line
1-4 family       70             66            76         87         91
residential
Construction
and other        5              6             8          8          12
consumer real
estate
Bankcard and
other            1              1             1          1          —
revolving
plans
Other            1              2             2          3          3
Total consumer   91             87            101        116        124
Total
nonaccrual       $  631         $   700       $ 772      $ 850      $  886
loans





Net Charge-Offs by Portfolio Type

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





CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)
                    Three Months Ended
                    December31, 2012       September30, 2012      June30, 2012
(In thousands)      Average        Average  Average        Average  Average        Average
                    balance        rate     balance        rate     balance        rate
ASSETS
Money market        $ 8,652,394    0.28  %  $ 7,990,243    0.27  %  $ 7,786,191    0.26  %
investments
Securities:
Held-to-maturity    740,297        5.29  %  758,761        5.32  %  797,843        5.72  %
Available-for-sale  2,958,311      3.01  %  3,052,559      2.93  %  3,084,771      3.34  %
Trading account     21,793         2.74  %  13,691         3.20  %  18,877         3.15  %
Total securities    3,720,401      3.46  %  3,825,011      3.41  %  3,901,491      3.82  %
Loans held for sale 231,710        3.22  %  183,224        3.52  %  157,308        3.99  %
Loans ^1:
Loans and leases    36,685,969     4.78  %  36,585,753     4.86  %  36,155,395     5.00  %
FDIC-supported      559,643        15.12 %  613,710        17.27 %  661,597        14.84 %
loans
Total loans         37,245,612     4.94  %  37,199,463     5.07  %  36,816,992     5.17  %
Total
interest-earning    49,850,117     4.01  %  49,197,941     4.15  %  48,661,982     4.27  %
assets
Cash and due from   1,259,311               1,000,159               1,025,681
banks
Allowance for loan  (925,943)               (964,676)               (1,006,606)
losses
Goodwill            1,014,986               1,015,129               1,015,129
Core deposit and    53,083                  57,345                  61,511
other intangibles
Other assets        3,014,503               3,060,914               3,132,314
Total assets        $ 54,266,057            $ 53,366,812            $ 52,890,011
LIABILITIES
Interest-bearing
deposits:
Savings and money   $ 22,356,014   0.20  %  $ 22,025,891   0.23  %  $ 21,957,941   0.25  %
market
Time                3,038,934      0.64  %  3,162,165      0.69  %  3,264,853      0.75  %
Foreign             1,597,513      0.23  %  1,472,437      0.29  %  1,490,695      0.35  %
Total
interest-bearing    26,992,461     0.25  %  26,660,493     0.28  %  26,713,489     0.31  %
deposits
Borrowed funds:
Securities sold,    3,320          —        2,062          —        6,128          1.90  %
not yet purchased
Federal funds
purchased and
security           429,653        0.14  %  453,209        0.14  %  474,026        0.14  %
 repurchase
agreements
Other short-term    6,293          1.71  %  8,273          1.73  %  13,290         2.00  %
borrowings
Long-term debt      2,318,478      8.80  %  2,297,409      8.93  %  2,329,608      11.25 %
Total borrowed      2,757,744      7.42  %  2,760,953      7.46  %  2,823,052      9.32  %
funds
Total
interest-bearing    29,750,205     0.91  %  29,421,446     0.96  %  29,536,541     1.17  %
liabilities
Noninterest-bearing 17,918,890              16,817,085              16,228,973
deposits
Other liabilities   610,316                 606,973                 582,743
Total liabilities   48,279,411              46,845,504              46,348,257
Shareholders'
equity:
Preferred equity    1,126,566               1,765,162               1,830,845
Common equity       4,862,972               4,758,858               4,713,318
Controlling
interest            5,989,538               6,524,020               6,544,163
shareholders'
equity
Noncontrolling      (2,892)                 (2,712)                 (2,409)
interests
Total shareholders' 5,986,646               6,521,308               6,541,754
equity
Total liabilities
and shareholders'   $ 54,266,057            $ 53,366,812            $ 52,890,011
equity
Spread on average
interest-bearing                   3.10  %                 3.19  %                 3.10  %
funds
Net yield on
interest-earning                   3.47  %                 3.58  %                 3.56  %
assets

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





GAAP to Non-GAAP Reconciliation

(Unaudited)
Tangible Return on Average Tangible Common Equity
              Three Months Ended
(Amounts in   December31,   September30,  June30, 2012  March31,      December31,
thousands)    2012           2012                          2012           2011
Net earnings
applicable to
common        $ 35,605       $ 62,322       $ 55,215       $ 25,489       $ 44,420
shareholders
(GAAP)
Adjustments,
net of tax:
Impairment
loss on       583            —              —              —              —
goodwill
Amortization
of core
deposit and   2,677          2,692          2,704          2,722          3,011
other
intangibles
Net earnings
applicable to
common
shareholders,
excluding the
effects of    $ 38,865       $ 65,014       $ 57,919       $ 28,211       $ 47,431
the
adjustments,
net of tax
(non-GAAP)
(a)
Average
common equity $ 4,862,972    $ 4,758,858    $ 4,713,318    $ 4,644,722    $ 4,583,748
(GAAP)
Average       (1,014,986)    (1,015,129)    (1,015,129)    (1,015,129)    (1,015,125)
goodwill
Average core
deposit and   (53,083)       (57,345)       (61,511)       (65,837)       (70,345)
other
intangibles
Average
tangible
common equity $ 3,794,903    $ 3,686,384    $ 3,636,678    $ 3,563,756    $ 3,498,278
(non-GAAP)
(b)
Number of
days in       92             92             91             91             92
quarter (c)
Number of
days in year  366            366            366            366            365
(d)
Tangible
return on
average
tangible      4.07        %  7.02        %  6.41        %  3.18        %  5.38        %
common equity
(non-GAAP)
(a/b/c*d)

This press release presents the non-GAAP financial measure previously shown.
The adjustments to reconcile from the applicable GAAP financial measure to the
non-GAAP financial measure 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 measure 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. This non-GAAP financial measure
is 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 this non-GAAP financial measure 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 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