Zions Bancorporation Reports Earnings Of $0.48 Per Diluted Common Share For First Quarter 2013

 Zions Bancorporation Reports Earnings Of $0.48 Per Diluted Common Share For
                              First Quarter 2013

PR Newswire

SALT LAKE CITY, April 22, 2013

SALT LAKE CITY, April 22, 2013 /PRNewswire/ --Zions Bancorporation (NASDAQ:
ZION) ("Zions" or "the Company") today reported first quarter net earnings
applicable to common shareholders of $88.3 million or $0.48 per diluted common
share, compared to $35.6 million or $0.19 per diluted share for the fourth
quarter of 2012, and $25.5 million or $0.14 per diluted share for the first
quarter of 2012.

First Quarter 2013 Highlights

  oLoans and leases, excluding FDIC-supported loans, increased $148 million
    to $37.3 billion at March 31, 2013. Average loans and leases, excluding
    FDIC-supported loans, increased $413 million.
  oGross loan and lease charge-offs declined 35% compared to the fourth
    quarter, while net loan and lease charge-offs declined 5%. Other
    improvements in credit quality were generally consistent with prior
    quarters.
  oThe continued improvement in credit quality resulted in first quarter
    negative provisions of $29.0 million for loan losses and $6.4 million for
    unfunded lending commitments.
  oTangible common equity per common share improved $0.72 to $21.67 from
    $20.95 in the fourth quarter, driven by increased retained earnings
    andimprovement in accumulated other comprehensive income ("AOCI").
  oNet interest income decreasedcompared to the prior quarter due to reduced
    day count and loan interest rates resetting at lower levels.

"We are again pleased with our improvement in credit quality, which we expect
to continue, and by somewhat better loan growth over the past couple of
quarters," said Harris H. Simmons, chairman and chief executive officer, "but
we see some renewed signs of new loan pricing pressure. However, we do expect
continued bottom line improvement as we take numerous actions over the next
several quarters to reduce the cost of our capital and debt financing."

Loans

Loans and leases, excluding loans held for sale and FDIC-supported loans,
increased $148 million on a net basis to $37.3 billion at March 31, 2013,
compared to $37.1 billion at December 31, 2012. The increases were
predominantly in commercial and industrial, construction and land development,
and 1-4 family residential loans primarily in Texas and California. Decreases
of $258 million primarily in commercial owner occupied, term commercial real
estate, and home equity credit line loans partially offset increases in other
loan categories. Average loans and leases, excluding FDIC-supported loans,
increased $413 million to $37.1 billion during the first quarter of 2013,
compared to $36.7 billion during the fourth quarter of 2012.

Deposits

Average total deposits for the first quarter of 2013 decreased $0.5 billion,
or 1%, to $44.4 billion, compared to $44.9 billion for the fourth quarter of
2012. Average noninterest-bearing demand deposits declined $0.7 billion, to
$17.2 billion in the first quarter from $17.9 billion in the fourth quarter,
while average interest-bearing deposits increased $0.2 billion, to $27.2
billion from $27.0 billion quarter over quarter. The ratio of average loans
excluding loans held for sale to average deposits was 85% at March 31, 2013,
compared to 83% at December 31, 2012.

Debt and Shareholders' Equity

As previously reported, on January 31, 2013, the Company sold $171.8 million
of its Series G Fixed/Floating Rate Non-Cumulative Perpetual Preferred Stock.
Dividends are payable from the issuance date to March 14, 2023 at an annual
rate of 6.30%. Beginning March 15, 2023 (date of earliest redemption) to
maturity, dividends will be payable at an annual floating rate equal to
three-month LIBOR plus 4.24%. Net of commissions and fees, the proceeds added
$168.8 million to shareholders' equity and Tier 1 capital.

The tangible common equity ratio was 7.53% at March 31, 2013, compared to
7.09% at December 31, 2012. The increase was primarily due to increased
retained earnings this quarter, a $39 million improvement in AOCI which
resulted primarily from increased fair values on collateralized debt
obligation ("CDO") securities, and lower cash-related balances. The estimated
common equity Tier 1 capital ratio was 10.06% at March 31, 2013, compared to
9.80% at December 31, 2012.

As previously announced, on May 3, 2013, Zions Capital Trust B will redeem all
of its 8.0% outstanding trust preferred securities, or 11.4 million shares, at
100% of their $25 per share liquidation amount for a total of $285 million.

Net Interest Income

Net interest income decreasedto $418 million for the first quarter of 2013,
compared to $430 million for the fourth quarter of 2012. The net interest
margin decreased to 3.44% in the first quarter of 2013, compared to 3.47% in
the fourth quarter of 2012. The major drivers of these declines were loan rate
resets, expiration of in-the-money floors on loans, reduced day count (for net
interest income), and lower yields on available-for-sale investment
securities. The cost of interest-bearing deposits continued to decline and was
0.23% in the first quarter compared to 0.25% in the fourth quarter.

Noninterest Income

Noninterest income for the first quarter of 2013 was $121.2 million, compared
to $54.2 million for the fourth quarter of 2012. The increase was primarily
due to the reduced amount of other-than-temporary impairment ("OTTI") on CDO
securities taken this quarter compared to the previous quarter.

CDO Investment Securities

During the first quarter of 2013, the Company recognized credit-related OTTI
on CDOs of $10.1 million or $0.03 per diluted share, compared to $83.8 million
or $0.28 per diluted share during the fourth quarter of 2012. Approximately
$6.2 million of the OTTI this quarter was related to an event of default on
one CDO. The higher amount of OTTI in the previous quarter resulted from
increases to our assumed probabilities of default, primarily on bank issuers
deferring payment of trust preferred interest, and to our near-term prepayment
assumptions for some banks. Gains from cash principal payments on CDOs
previously written down were $3.3 million in the first quarter of 2013,
compared to $10.2 million in the fourth quarter of 2012.

The following table provides fair value and other information on the CDOs,
stratified into performing tranches without credit impairment and
nonperforming tranches at March 31, 2013:

               March 31, 2013
                                                                             % of carrying
                                                       Net                   value to par
                                                       unrealized  Weighted  
(Amounts in    No. of    Par      Amortized  Carrying  losses      average          December  
millions)      tranches  amount   cost       value     recognized  discount  March  31,
                                                       in AOCI ^1  rate ^2   31,    2012      Change
                                                                             2013
Performing
CDOs
Predominantly  27        $ 774    $  694     $  560    $   (134)   5.9%      72%    66%       6%
bank CDOs
Insurance-only 22        447      443        331       (112)       7.9%      74%    72%       2%
CDOs
Other CDOs     6         51       40         37        (3)         9.6%      73%    70%       3%
Total
performing     55        1,272    1,177      928       (249)       6.7%      73%    68%       5%
CDOs
Nonperforming
CDOs ^3
CDOs credit
impaired prior 19        394      275        126       (149)       10.1%     32%    30%       2%
to last 12
months
CDOs credit
impaired       39        732      432        179       (253)       11.4%     24%    25%       (1)%
during last 12
months
Total
nonperforming  58        1,126    707        305       (402)       11.0%     27%    26%       1%
CDOs
Total CDOs     113       $ 2,398  $  1,884   $  1,233  $   (651)   8.7%      51%    49%       2%

^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 $651 million in the first
quarter of 2013 from $718 million in the fourth quarter of 2012 due to fair
value increases that occurred primarily in senior tranches and were driven by
continued improvement in credit spreads.

Noninterest Expense

Noninterest expense for the first quarter of 2013 was $397.3 million compared
to $407.0 million for the fourth quarter of 2012. The decrease was due
primarily to a $7.3 million reduction in the provision for unfunded lending
commitments, and to reduced levels of other real estate expense and legal and
professional services compared to the fourth quarter. These were partially
offset by increased salaries and employee benefits due to increased payroll
taxes and variable compensation accruals. Other noninterest expense was
approximately $9.7 million higher this quarter than the previous quarter due
to increased amortization of the FDIC indemnification asset from loan
prepayments.

Asset Quality

Gross loan and lease charge-offs declined 35% to $35.5 million in the first
quarter of 2013, compared to $54.7 million in the fourth quarter of 2012;
gross charge-offs declined 56% from the first quarter of 2012. Net loan and
lease charge-offs decreased 5% in the first quarter of 2013, compared to the
fourth quarter of 2012. Net charge-offs declined primarily in consumer home
equity credit line and term commercial real estate loans.

Nonperforming lending-related assets declined 8% to $684 million at March 31,
2013 from $746 million at December 31, 2012. Nonaccrual loans declined 8% to
$594 million at March 31, 2013 from $648 million at December 31, 2012. The
ratio of nonperforming lending-related assets to loans and leases and other
real estate owned decreased to 1.80% at March 31, 2013, compared to 1.96% at
December 31, 2012.

Classified loans, excluding FDIC-supported loans, decreased approximately 2%
to $1.74 billion at March 31, 2013, compared to $1.77 billion at December 31,
2012. Approximately 80% of classified loans were current as to principal and
interest for the first quarter of 2013, compared to 79% for the fourth quarter
of 2012, and 73% for the first quarter of 2012.

The provision (credit) for loan losses was $(29.0) million for the first
quarter of 2013, compared to $(10.4) million for the fourth quarter of 2012.
The decline in the provision was driven by the continued improvement in credit
quality, including continued improvement in loss severity from classified
loans. The allowance for credit losses was $0.9 billion, or 2.50% of loans and
leases at March 31, 2013, compared to $1.0 billion, or 2.66% of loans and
leases at December 31, 2012.

Conference Call

Zions will host a conference call to discuss these first quarter results at
5:30 p.m. ET this afternoon (April 22, 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 24666556,
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, April 22, 2013,
until midnight ET on Monday, April 29, 2013, by dialing 855-859-2056 (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, and
received 13 "Excellence" awards by Greenwich Associates for the 2012 survey.
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,                  December     September
except share, per  March 31,    31,          30,          June 30,     March 31,
share, and ratio   2013         2012         2012         2012         2012
data)
PER COMMON SHARE
Dividends          $   0.01     $  0.01      $  0.01      $  0.01      $   0.01
Book value per     27.43        26.73        26.05        25.48        25.25
common share ^1
Tangible common
equity per common  21.67        20.95        20.24        19.65        19.39
share ^1
SELECTED RATIOS
Return on average  0.83%        0.43%        0.82%        0.70%        0.69%
assets
Return on average  7.18%        2.91%        5.21%        4.71%        2.21%
common equity
Tangible return on
average tangible   9.37%        4.07%        7.02%        6.41%        3.18%
common equity
Net interest       3.44%        3.47%        3.58%        3.56%        3.69%
margin
Capital Ratios
Tangible common    7.53%        7.09%        7.17%        6.91%        6.89%
equity ratio ^1
Tangible equity    9.97%        9.15%        9.32%        10.35%       10.24%
ratio ^1
Average equity to  11.54%       11.03%       12.22%       12.37%       13.31%
average assets
Risk-Based Capital
Ratios ^1,2
Common equity Tier 10.06%       9.80%        9.86%        9.78%        9.71%
1 capital
Tier 1 leverage    11.56%       10.96%       11.05%       12.31%       12.17%
Tier 1 risk-based  14.04%       13.38%       13.49%       15.03%       14.83%
capital
Total risk-based   15.72%       15.05%       15.25%       16.89%       16.76%
capital
Taxable-equivalent
net interest       $   422,252  $  434,252   $  442,595   $  430,967   $   442,340
income
Weighted average
common and         183,655,129  183,456,109  183,382,650  183,136,631  182,963,828
common-equivalent
shares outstanding
Common shares      184,246,471  184,199,198  184,156,402  184,117,522  184,228,178
outstanding ^1

^1 At period end.
^2 Ratios for March 31, 2013 are estimates.



CONSOLIDATED BALANCE SHEETS
(In thousands,      March 31,     December 31,  September     June 30,      March 31,
except share        2013          2012          30,           2012          2012
amounts)                                        2012
                    (Unaudited)                 (Unaudited)   (Unaudited)   (Unaudited)
ASSETS
Cash and due from   $ 928,817     $ 1,841,907   $ 1,060,918   $ 1,124,673   $ 1,082,186
banks
Money market
investments:
Interest-bearing    5,785,268     5,978,978     5,519,463     7,887,175     7,629,399
deposits
Federal funds sold
and security resell 2,340,177     2,775,354     1,960,294     83,529        52,634
agreements
Investment
securities:
Held-to-maturity,
at adjusted cost
(approximate fair
value $684,668,     736,158       756,909       740,738       773,016       797,149
$674,741, $655,768,
$715,710, and
$728,479)
Available-for-sale, 3,287,844     3,091,310     3,127,192     3,167,590     3,223,086
at fair value
Trading account, at 28,301        28,290        13,963        20,539        19,033
fair value
                    4,052,303     3,876,509     3,881,893     3,961,145     4,039,268
Loans held for sale 161,559       251,651       220,240       139,245       184,579
Loans, net of
unearned income and
fees:
Loans and leases    37,284,694    37,137,006    36,674,288    36,319,596    35,998,928
FDIC-supported      477,725       528,241       588,566       642,246       687,126
loans
                    37,762,419    37,665,247    37,262,854    36,961,842    36,686,054
Less allowance for  841,781       896,087       927,068       973,443       1,011,786
loan losses
Loans, net of       36,920,638    36,769,160    36,335,786    35,988,399    35,674,268
allowance
Other
noninterest-bearing 855,388       855,462       874,903       867,882       875,037
investments
Premises and        706,746       708,882       709,188       714,913       715,815
equipment, net
Goodwill            1,014,129     1,014,129     1,015,129     1,015,129     1,015,129
Core deposit and    47,000        50,818        55,034        59,277        63,538
other intangibles
Other real estate   89,904        98,151        118,190       144,816       158,592
owned
Other assets        1,208,635     1,290,917     1,335,963     1,420,829     1,405,862
                    $ 54,110,564  $ 55,511,918  $ 53,087,001  $ 53,407,012  $ 52,896,307
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing $ 17,311,150  $ 18,469,458  $ 17,295,911  $ 16,498,248  $ 16,185,140
demand
Interest-bearing:
Savings and money   22,760,397    22,896,624    21,970,062    21,945,230    22,220,405
market
Time                2,889,903     2,962,931     3,107,815     3,211,942     3,326,717
Foreign             1,528,745     1,804,060     1,398,749     1,504,827     1,366,826
                    44,490,195    46,133,073    43,772,537    43,160,247    43,099,088
Securities sold,    1,662         26,735        21,708        104,882       47,404
not yet purchased
Federal funds
purchased and       325,107       320,478       451,214       759,591       486,808
security repurchase
agreements
Other short-term    —             5,409         6,608         7,621         19,839
borrowings
Long-term debt      2,352,569     2,337,113     2,326,659     2,274,571     2,283,121
Reserve for
unfunded lending    100,455       106,809       105,850       103,586       98,718
commitments
Other liabilities   489,923       533,660       484,170       507,151       474,551
Total liabilities   47,759,911    49,463,277    47,168,746    46,917,649    46,509,529
Shareholders'
equity:
Preferred stock,
without par value,  1,301,289     1,128,302     1,123,377     1,800,473     1,737,633
authorized
4,400,000 shares
Common stock,
without par value;
authorized
350,000,000 shares;
issued and
outstanding         4,170,888     4,166,109     4,162,001     4,157,525     4,162,522
184,246,471,
184,199,198,
184,156,402,
184,117,522, and
184,228,178 shares
Retained earnings   1,290,131     1,203,815     1,170,477     1,110,120     1,060,525
Accumulated other
comprehensive       (406,903)     (446,157)     (534,738)     (576,147)     (571,567)
income (loss)
Controlling
interest            6,355,405     6,052,069     5,921,117     6,491,971     6,389,113
shareholders'
equity
Noncontrolling      (4,752)       (3,428)       (2,862)       (2,608)       (2,335)
interests
Total shareholders' 6,350,653     6,048,641     5,918,255     6,489,363     6,386,778
equity
                    $ 54,110,564  $ 55,511,918  $ 53,087,001  $ 53,407,012  $ 52,896,307



CONSOLIDATED STATEMENTS OF INCOME



(Unaudited)
                    Three Months Ended
(In thousands,      March 31,  December   September  June 30,   March 31,
except per share    2013       31,        30,        2012       2012
amounts)                       2012       2012
Interest income:
Interest and fees   $ 453,433  $ 462,002  $ 473,162  $ 472,926  $ 481,794
on loans
Interest on money   5,439      6,004      5,349      5,099      4,628
market investments
Interest on
securities:
Held-to-maturity    7,974      8,130      8,337      9,325      8,959
Available-for-sale  17,712     21,971     22,042     25,090     23,158
Trading account     190        150        110        148        338
Total interest      484,748    498,257    509,000    512,588    518,877
income
Interest expense:
Interest on         15,642     16,861     19,049     20,823     23,413
deposits
Interest on
short-term          92         178        193        256        779
borrowings
Interest on         50,899     51,261     51,597     65,165     57,207
long-term debt
Total interest      66,633     68,300     70,839     86,244     81,399
expense
Net interest income 418,115    429,957    438,161    426,344    437,478
Provision for loan  (29,035)   (10,401)   (1,889)    10,853     15,664
losses
Net interest income
after provision for 447,150    440,358    440,050    415,491    421,814
loan losses
Noninterest income:
Service charges and
fees on deposit     43,580     44,492     44,951     43,426     43,532
accounts
Other service
charges,            42,731     46,497     44,679     44,197     39,047
commissions and
fees
Trust and wealth    6,994      7,450      6,521      8,057      6,374
management income
Capital markets and 7,486      7,708      6,026      7,342      5,734
foreign exchange
Dividends and other 12,724     13,117     11,686     21,542     9,480
investment income
Loan sales and      10,951     10,595     10,695     10,287     8,352
servicing income
Fair value and
nonhedge derivative (5,445)    (4,778)    (5,820)    (6,784)    (4,400)
loss
Equity securities   2,832      (682)      2,683      107        9,145
gains (losses), net
Fixed income
securities gains,   3,299      10,259     3,046      5,519      720
net
Impairment losses
on investment
securities:
Impairment losses
on investment       (31,493)   (120,082)  (3,876)    (24,026)   (18,273)
securities
Noncredit-related
losses on
securities not
expected to be sold 21,376     36,274     1,140      16,718     8,064
(recognized in
other comprehensive
income)
Net impairment
losses on           (10,117)   (83,808)   (2,736)    (7,308)    (10,209)
investment
securities
Other               6,184      3,309      3,495      2,280      4,045
Total noninterest   121,219    54,159     125,226    128,665    111,820
income
Noninterest
expense:
Salaries and        229,789    220,039    220,223    220,765    224,634
employee benefits
Occupancy, net      27,389     28,226     28,601     28,169     27,951
Furniture and       26,074     27,774     27,122     27,302     26,792
equipment
Other real estate   1,977      5,266      207        6,440      7,810
expense
Credit related      10,482     11,302     13,316     12,415     13,485
expense
Provision for
unfunded lending    (6,354)    959        2,264      4,868      (3,704)
commitments
Legal and
professional        10,471     15,717     12,749     12,947     11,096
services
Advertising         5,893      5,969      7,326      6,618      5,807
FDIC premiums       9,711      10,760     11,278     10,444     10,919
Amortization of
core deposit and    3,819      4,216      4,241      4,262      4,291
other intangibles
Other               78,097     76,786     67,648     67,426     63,291
Total noninterest   397,348    407,014    394,975    401,656    392,372
expense
Income before       171,021    87,503     170,301    142,500    141,262
income taxes
Income taxes        60,634     29,817     60,704     51,036     51,859
Net income          110,387    57,686     109,597    91,464     89,403
Net loss applicable
to noncontrolling   (336)      (566)      (254)      (273)      (273)
interests
Net income
applicable to       110,723    58,252     109,851    91,737     89,676
controlling
interest
Preferred stock     (22,399)   (22,647)   (47,529)   (36,522)   (64,187)
dividends
Net earnings
applicable to       $ 88,324   $ 35,605   $ 62,322   $ 55,215   $ 25,489
common shareholders
Weighted average common
shares outstanding during the
period:
Basic shares        183,396    183,300    183,237    182,985    182,798
Diluted shares      183,655    183,456    183,383    183,137    182,964
Net earnings per
common share:
Basic               $ 0.48     $ 0.19     $ 0.34     $ 0.30     $ 0.14
Diluted             0.48       0.19       0.34       0.30       0.14





Loan Balances by Portfolio Type

(Unaudited)
                March 31,   December   September  June 30,   March 31,
(In millions)   2013        31,        30,        2012       2012
                            2012       2012
Commercial:
Commercial and   $ 11,504    $ 11,257   $ 10,840   $ 10,471   $ 10,253
industrial
Leasing          390         423        405        406        394
Owner occupied   7,501       7,589      7,669      7,811      7,886
Municipal        484         494        469        477        441
Total            19,879      19,763     19,383     19,165     18,974
commercial
Commercial real
estate:
Construction
and land         2,039       1,939      1,956      2,099      2,100
development
Term             8,012       8,063      8,140      8,012      8,070
Total
commercial real  10,051      10,002     10,096     10,111     10,170
estate
Consumer:
Home equity      2,125       2,178      2,175      2,181      2,167
credit line
1-4 family       4,408       4,350      4,181      4,019      3,875
residential
Construction
and other        320         321        320        328        316
consumer real
estate
Bankcard and
other revolving  293         307        295        284        274
plans
Other            208         216        224        232        223
Total consumer   7,354       7,372      7,195      7,044      6,855
FDIC-supported   478         528        589        642        687
loans ^1
Total loans      $ 37,762    $ 37,665   $ 37,263   $ 36,962   $ 36,686
^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)
                March 31,   December   September  June 30,   March 31,
(In thousands)  2013        31,        30,        2012       2012
                            2012       2012
Balance sheet:
Change in
assets from
reestimation of
cash flows –
increase
(decrease):
FDIC-supported   $ 18,977    $ 12,970   $ 17,594   $ 14,761   $ 13,171
loans
FDIC
indemnification
asset (included  (20,288)    (10,610)   (14,401)   (11,233)   (10,002)
in other
assets)
Balance at end
of period:
FDIC-supported   477,725     528,241    588,566    642,246    687,126
loans
FDIC
indemnification
asset (included  71,100      90,074     100,004    117,167    123,862
in other
assets)
                Three Months Ended
                March 31,   December   September  June 30,   March 31,
(In thousands)  2013        31,        30,        2012       2012
                            2012       2012
Statement of
income:
Interest
income:
Interest and     $ 18,977    $ 12,970   $ 17,594   $ 14,761   $ 13,171
fees on loans
Noninterest
expense:
Other
noninterest      20,288      10,610     14,401     11,233     10,002
expense
Net increase
(decrease) in    $ (1,311)   $ 2,360    $ 3,193    $ 3,528    $ 3,169
pretax income





Nonperforming Lending-Related Assets

(Unaudited)
(Amounts in       March 31,  December   September  June 30,   March 31,
thousands)        2013       31,        30,        2012       2012
                             2012       2012
Nonaccrual loans  $ 589,221  $ 630,810  $ 699,952  $ 771,510  $ 849,543
Other real estate 80,701     90,269     106,356    125,142    129,676
owned
Nonperforming
lending-related
assets, excluding 669,922    721,079    806,308    896,652    979,219
FDIC-supported
assets
FDIC-supported    4,927      17,343     19,454     21,980     22,623
nonaccrual loans
FDIC-supported
other real estate 9,203      7,882      11,834     19,674     28,916
owned
FDIC-supported
nonperforming     14,130     25,225     31,288     41,654     51,539
assets
Total
nonperforming     $ 684,052  $ 746,304  $ 837,596  $ 938,306  $ 1,030,758
lending-related
assets
Ratio of
nonperforming
lending-related
assets to loans   1.80%      1.96%      2.23%      2.52%      2.78%
^1 and leases and
other real estate
owned
Accruing loans
past due 90 days
or more,          $ 12,708   $ 9,730    $ 14,508   $ 29,460   $ 38,172
excluding
FDIC-supported
loans
Accruing
FDIC-supported    47,208     52,033     60,913     70,453     76,945
loans past due 90
days or more
Ratio of accruing
loans past due 90
days or more to   0.16%      0.16%      0.20%      0.27%      0.31%
loans ^1 and
leases
Nonaccrual loans
and accruing      $ 654,064  $ 709,916  $ 794,827  $ 893,403  $ 987,283
loans past due 90
days or more
Ratio of
nonaccrual loans
and accruing
loans past due 90 1.72%      1.87%      2.12%      2.41%      2.68%
days or more to
loans ^1 and
leases
Accruing loans
past due 30 - 89
days, excluding   $ 155,896  $ 185,422  $ 143,539  $ 142,501  $ 171,224
FDIC-supported
loans
Accruing
FDIC-supported    11,571     11,924     15,462     15,519     13,899
loans past due 30
- 89 days
Restructured
loans included in 193,975    215,476    207,088    227,568    276,669
nonaccrual loans
Restructured      416,181    407,026    421,055    393,360    401,554
loans on accrual
Classified loans,
excluding         1,737,178  1,767,460  1,810,099  1,880,932  2,076,220
FDIC-supported
loans

^1 Includes loans held for sale.



Allowance for Credit Losses

(Unaudited)
               Three Months Ended
(Amounts in    March 31,  December     September    June 30,     March 31,
thousands)     2013       31,          30, 2012     2012         2012
                          2012
Allowance for
Loan Losses
Balance at
beginning of   $ 896,087  $ 927,068    $ 973,443    $ 1,011,786  $ 1,051,685
period
Add:
Provision for  (29,035)   (10,401)     (1,889)      10,853       15,664
losses
Adjustment for
FDIC-supported (7,429)    (1,721)      (5,908)      (5,856)      (1,057)
loans
Deduct:
Gross loan and
lease          (35,467)   (54,709)     (58,781)     (73,685)     (80,014)
charge-offs
Recoveries     17,625     35,850       20,203       30,345       25,508
Net loan and
lease          (17,842)   (18,859)     (38,578)     (43,340)     (54,506)
charge-offs
Balance at end $ 841,781  $ 896,087    $ 927,068    $ 973,443    $ 1,011,786
of period
Ratio of
allowance for
loan losses to 2.23%      2.38%        2.49%        2.63%        2.76%
loans and
leases, at
period end
Ratio of
allowance for
loan losses to 141.68%    138.25%      128.87%      122.68%      116.01%
nonperforming
loans, at
period end
Annualized
ratio of net
loan and lease 0.19%      0.20%        0.41%        0.47%        0.59%
charge-offs to
average loans
Reserve for
Unfunded
Lending
Commitments
Balance at
beginning of   $ 106,809  $ 105,850    $ 103,586    $ 98,718     $ 102,422
period
Provision
charged        (6,354)    959          2,264        4,868        (3,704)
(credited) to
earnings
Balance at end $ 100,455  $ 106,809    $ 105,850    $ 103,586    $ 98,718
of period
Total
Allowance for
Credit Losses
Allowance for  $ 841,781  $ 896,087    $ 927,068    $ 973,443    $ 1,011,786
loan losses
Reserve for
unfunded       100,455    106,809      105,850      103,586      98,718
lending
commitments
Total
allowance for  $ 942,236  $ 1,002,896  $ 1,032,918  $ 1,077,029  $ 1,110,504
credit losses
Ratio of total
allowance for
credit losses
to loans and   2.50%      2.66%        2.77%        2.91%        3.03%
leases
outstanding,
at period end



Nonaccrual Loans by Portfolio Type

(Excluding FDIC-Supported Loans)

(Unaudited)
                      March 31,  December  September  June    March
(In millions)         2013       31,       30,        30,     31,
                                 2012      2012       2012    2012
Loans held for sale     $  —       $  —      $  —      $ —     $ —
Commercial:
Commercial and          100        91        103       133     149
industrial
Leasing                 1          1         1         1       1
Owner occupied          195        206       223       240     245
Municipal               9          9         6         —       —
Total commercial        305        307       333       374     395
Commercial real
estate:
Construction and land   93         108       125       115     148
development
Term                    102        125       155       182     191
Total commercial real   195        233       280       297     339
estate
Consumer:
Home equity credit      12         14        12        14      17
line
1-4 family              71         70        66        76      87
residential
Construction and
other consumer real     4          5         6         8       8
estate
Bankcard and other      1          1         1         1       1
revolving plans
Other                   1          1         2         2       3
Total consumer          89         91        87        101     116
Total nonaccrual        $  589     $  631    $  700    $ 772   $ 850
loans



Net Charge-Offs by Portfolio Type

(Unaudited)
                         March  December  September  June 30,  March
(In millions)            31,    31,       30,        2012      31,
                         2013   2012      2012                 2012
Commercial:
Commercial and            $ 5     $  (1)     $  3      $  9     $ 17
industrial
Leasing                   —       2          —         —        —
Owner occupied            5       7          10        10       8
Municipal                 —       —          —         —        —
Total commercial          10      8          13        19       25
Commercial real estate:
Construction and land     (3)     (7)        —         (2)      (2)
development
Term                      5       7          16        13       18
Total commercial real     2       —          16        11       16
estate
Consumer:
Home equity credit line   2       6          2         6        4
1-4 family residential    3       4          4         5        7
Construction and other    (1)     —          1         —        1
consumer real estate
Bankcard and other        2       1          2         1        2
revolving plans
Other                     —       —          —         1        —
Total consumer loans      6       11         9         13       14
Total net charge-offs     $ 18    $  19      $  38     $  43    $ 55



CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)
                    Three Months Ended
                    March 31, 2013         December 31, 2012      September 30, 2012
(In thousands)      Average       Average  Average       Average  Average       Average
                    balance       rate     balance       rate     balance       rate
ASSETS
Money market        $ 8,111,798   0.27%    $ 8,652,394   0.28%    $ 7,990,243   0.27%
investments
Securities:
Held-to-maturity    756,739       5.11%    740,297       5.29%    758,761       5.32%
Available-for-sale  3,035,592     2.41%    2,958,311     3.01%    3,052,559     2.93%
Trading account     22,620        3.41%    21,793        2.74%    13,691        3.20%
Total securities    3,814,951     2.95%    3,720,401     3.46%    3,825,011     3.41%
Loans held for sale 204,597       3.50%    231,710       3.22%    183,224       3.52%
Loans ^1:
Loans and leases    37,099,182    4.67%    36,685,969    4.78%    36,585,753    4.86%
FDIC-supported      498,654       21.43%   559,643       15.12%   613,710       17.27%
loans
Total loans         37,597,836    4.90%    37,245,612    4.94%    37,199,463    5.07%
Total
interest-earning    49,729,182    3.99%    49,850,117    4.01%    49,197,941    4.15%
assets
Cash and due from   1,063,314              1,259,311              1,000,159
banks
Allowance for loan  (884,363)              (925,943)              (964,676)
losses
Goodwill            1,014,129              1,014,986              1,015,129
Core deposit and    49,069                 53,083                 57,345
other intangibles
Other assets        2,889,354              3,014,503              3,060,914
Total assets        $ 53,860,685           $ 54,266,057           $ 53,366,812
LIABILITIES
Interest-bearing
deposits:
Savings and money   $ 22,735,258  0.19%    $ 22,356,014  0.20%    $ 22,025,891  0.23%
market
Time                2,935,316     0.62%    3,038,934     0.64%    3,162,165     0.69%
Foreign             1,528,665     0.20%    1,597,513     0.23%    1,472,437     0.29%
Total
interest-bearing    27,199,239    0.23%    26,992,461    0.25%    26,660,493    0.28%
deposits
Borrowed funds:
Securities sold,    494           —%       3,320         —%       2,062         —%
not yet purchased
Federal funds
purchased and       289,918       0.10%    429,653       0.14%    453,209       0.14%
security repurchase
agreements
Other short-term    3,837         2.01%    6,293         1.71%    8,273         1.73%
borrowings
Long-term debt      2,331,314     8.85%    2,318,478     8.80%    2,297,409     8.93%
Total borrowed      2,625,563     7.88%    2,757,744     7.42%    2,760,953     7.46%
funds
Total
interest-bearing    29,824,802    0.91%    29,750,205    0.91%    29,421,446    0.96%
liabilities
Noninterest-bearing 17,211,214             17,918,890             16,817,085
deposits
Other liabilities   608,206                610,316                606,973
Total liabilities   47,644,222             48,279,411             46,845,504
Shareholders'
equity:
Preferred equity    1,229,708              1,126,566              1,765,162
Common equity       4,990,317              4,862,972              4,758,858
Controlling
interest            6,220,025              5,989,538              6,524,020
shareholders'
equity
Noncontrolling      (3,562)                (2,892)                (2,712)
interests
Total shareholders' 6,216,463              5,986,646              6,521,308
equity
Total liabilities
and shareholders'   $ 53,860,685           $ 54,266,057           $ 53,366,812
equity
Spread on average
interest-bearing                  3.08%                  3.10%                  3.19%
funds
Net yield on
interest-earning                  3.44%                  3.47%                  3.58%
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   March 31,    December     September    June 30,     March 31,
thousands)    2013         31,          30,          2012         2012
                           2012         2012
Net earnings
applicable to
common        $ 88,324     $ 35,605     $ 62,322     $ 55,215     $ 25,489
shareholders
(GAAP)
Adjustments,
net of tax:
Impairment
loss on       —            583          —            —            —
goodwill
Amortization
of core
deposit and   2,425        2,677        2,692        2,704        2,722
other
intangibles
Net earnings
applicable to
common
shareholders,
excluding the
effects of    $ 90,749     $ 38,865     $ 65,014     $ 57,919     $ 28,211
the
adjustments,
net of tax
(non-GAAP)
(a)
Average
common equity $ 4,990,317  $ 4,862,972  $ 4,758,858  $ 4,713,318  $ 4,644,722
(GAAP)
Average       (1,014,129)  (1,014,986)  (1,015,129)  (1,015,129)  (1,015,129)
goodwill
Average core
deposit and   (49,069)     (53,083)     (57,345)     (61,511)     (65,837)
other
intangibles
Average
tangible
common equity $ 3,927,119  $ 3,794,903  $ 3,686,384  $ 3,636,678  $ 3,563,756
(non-GAAP)
(b)
Number of
days in       90           92           92           91           91
quarter (c)
Number of
days in year  365          366          366          366          366
(d)
Tangible
return on
average
tangible      9.37%        4.07%        7.02%        6.41%        3.18%
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
 
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