ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ - FORM 8-K - EX-99.1 - PRESS RELEASE

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ - FORM 8-K - EX-99.1 - PRESS RELEASE - October 24, 2011

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***FOR IMMEDIATE RELEASE***

ZIONS BANCORPORATION REPORTS EARNINGS OF $0.35

PER DILUTED COMMON SHARE FOR THIRD QUARTER 2011

SALT LAKE CITY, October 24, 2011 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported third quarter net earnings applicable to common shareholders of $65.2 million or $0.35 per diluted common share, compared to $29.0 million or $0.16 per diluted share for the second quarter of 2011. Excluding the noncash effects of the discount amortization on convertible subordinated debt and additional accretion on acquired loans, net earnings were $74.8 million or $0.40 per diluted share for the third quarter of 2011, compared to $82.4 million or $0.45 per diluted share for the second quarter of 2011.

Third Quarter 2011 Highlights

Net interest income increased 13% from the second quarter, primarily due to the significant decline in subordinated debt conversions this quarter. Core net interest income was approximately $468 million, a slight increase from the second quarter.

Nonperforming lending-related assets declined 16% to $1.3 billion from $1.5 billion at June 30, 2011.

Classified loans decreased 12% to $2.4 billion from $2.7 billion at June 30, 2011.

Net charge-offs declined 9% to $102 million from $112 million in the second quarter.

Commercial and industrial loans increased 2.2% while FDIC-supported loans and construction and land development loans declined 9.2% compared to the second quarter, resulting in net loan attrition of 0.3%.

Accumulated other comprehensive income (loss) decreased by $84 million primarily due to declines in the fair values of CDO securities that did not affect earnings. These declines resulted from the effects of recent higher levels of volatility and increased credit spreads in fixed income securities markets.

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ZIONS BANCORPORATION

Press Release – Page 2

October 24, 2011

The estimated Tier 1 common to risk-weighted assets ratio was 9.49% compared to 9.36% in the second quarter.

“We are pleased with the continued steady improvement in credit quality and the stability of our net interest income,” said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, “While loan demand softened somewhat for us compared to the prior quarter, we continued to experience growth in several categories as payoffs and paydowns in the construction portfolio resulted in a modest decline in the overall portfolio.” Mr. Simmons concluded, “We expect continued improvement in credit quality in the near term despite the uncertain economic environment. We have observed continued competitive pricing pressures particularly with respect to larger commercial credits. While the recent flattening of the yield curve may have a modest adverse impact on our net interest income, we are considerably more sensitive to changes in short-term rates than to long-term rates.”

Net Interest Income

Net interest income increased 13% to $471 million for the third quarter of 2011, compared to $416 million for the second quarter of 2011. The increase was primarily due to lower interest expense resulting from the significant decline in subordinated debt conversions during the quarter. Core net interest income, adjusted for discount amortization on convertible subordinated debt and accretion on acquired loans, was approximately $468 million during the third quarter of 2011, which increased slightly from $467 million for the second quarter of 2011. The net interest margin increased to 3.99% in the third quarter of 2011, compared to 3.62% in the second quarter of 2011, primarily due to the same changes previously discussed. The core net interest margin was 3.97% in the third quarter, compared to 4.07% in the second quarter. Approximately 6 basis points of the decline were attributable to an increase in average cash-related balances to $5.5 billion for the third quarter, compared to $4.8 billion for the second quarter.

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ZIONS BANCORPORATION

Press Release – Page 3

October 24, 2011

Asset Quality

Nonperforming lending-related assets declined approximately 16% to $1.3 billion at September 30, 2011 from $1.5 billion at June 30, 2011. Nonaccrual loans declined approximately 16% to $1.1 billion at September 30, 2011 from $1.3 billion at June 30, 2011. Additions to nonaccrual loans declined to $233 million during the third quarter of 2011, compared to $263 million during the second quarter of 2011. Nonaccrual loans that are current as to principal and interest were approximately 39% of the balance at September 30, 2011, compared to 38% at June 30, 2011. Other real estate owned declined approximately 15% to $203 million at September 30, 2011, compared to $239 million at June 30, 2011.

The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned decreased to 3.43% at September 30, 2011, compared to 4.06% at June 30, 2011.

Classified loans decreased approximately 12% to $2.4 billion at September 30, 2011, compared to $2.7 billion at June 30, 2011. Classified loans at June 30, 2011 were also down 12% from March 31, 2011. Approximately 72% of classified loans were current as to principal and interest for the third quarter of 2011, compared to 69% for the second quarter of 2011.

Net loan and lease charge-offs were $102 million for the third quarter of 2011, compared to $112 million for the second quarter of 2011. Net charge-offs declined in commercial real estate and consumer loans.

The provision for loan losses was $14.6 million for the third quarter of 2011, compared to $1.3 million for the second quarter of 2011. Although actual credit trends continue to improve, the Company increased the portion of its provision related to national economic conditions in light of reported weaker economic data and fiscal uncertainty in Europe. The allowance for credit losses was $1.3 billion, or 3.40% of net loans and leases at September 30, 2011, compared to $1.3 billion, or 3.63% of net loans and leases at June 30, 2011.

As of September 30, 2011, additional troubled debt restructurings identified from the Company’s review of modified loans under new accounting guidance effective this quarter amounted to approximately $21 million, or 3% of the approximate $738 million total of troubled debt restructurings.

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ZIONS BANCORPORATION

Press Release – Page 4

October 24, 2011

Loans

Net loans and leases of $36.7 billion at September 30, 2011 decreased approximately $100 million or 0.3% from $36.8 billion at June 30, 2011, compared to a $278 million increase during the second quarter of 2011. Increases in commercial and industrial loans, primarily at Amegy Bank, were offset by decreases in construction and land development and FDIC-supported loans. FDIC-supported loans in the aggregate continue to perform better than previously forecasted.

Shareholders’ Equity

Despite positive earnings, tangible common equity per share declined $0.08 to $18.87 at September 30, 2011, as a result of the decrease to accumulated other comprehensive income (loss) previously discussed.

The estimated Tier 1 common to risk-weighted assets ratio was 9.49% at September 30, 2011, compared to 9.36% at June 30, 2011.

Effective September 15, 2011, $16.8 million of convertible subordinated debt was converted into depositary shares each representing a 1/40th interest in a share of the Company’s preferred stock. This conversion added 16,811 shares of Series C and 23 shares of Series A to the Company’s preferred stock. Accelerated discount amortization on the converted debt increased interest expense by a pretax noncash amount of approximately $7.5 million ($6.1 million after-tax) in the third quarter of 2011, compared to $61.4 million ($50.0 million after-tax) in the second quarter of 2011.

On October 19, 2011, the Company reported that as of October 18, 2011, holders of approximately $15.0 million of subordinated convertible notes elected to convert their debt into depositary shares of the Company’s preferred stock. This anticipated conversion is expected to increase interest expense in the fourth quarter of 2011 due to the accelerated discount amortization on the converted debt by an estimated noncash amount of $5.8 million pretax ($4.7 million after-tax) compared to $7.5 million pretax in the third quarter as previously discussed.

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ZIONS BANCORPORATION

Press Release – Page 5

October 24, 2011

Deposits

Average total deposits for the third quarter of 2011 increased $512 million or 1.3% to $41.4 billion compared to $40.9 billion for the second quarter of 2011. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the third quarter of 2011 which were $14.8 billion, compared to $14.2 billion for the second quarter of 2011. The ratio of loans to deposits was 89.1% at September 30, 2011, compared to 89.7% at June 30, 2011.

Investment Securities

During the third quarter of 2011, the Company recognized net credit-related OTTI on CDOs of $13.3 million or $0.04 per diluted share, compared to $5.2 million or $0.02 per diluted share during the second quarter of 2011. The OTTI this quarter resulted primarily from an increase in the Company’s assumptions of trust preferred prepayment speeds for small banks in light of observed increases in prepayments. This change resulted in reduced projected cash flows for certain mezzanine tranches and, hence, additional OTTI. The Company’s $13.0 million gain on fixed income securities was primarily due to the partial prepayment at par of a predominantly bank trust preferred CDO security on which the Company had previously taken a significant market value adjustment.

The following table shows the changes in carrying value for CDOs at September 30, 2011 compared to June 30, 2011:

	September 30, 2011												% of carrying					Change
(Amounts in millions)	Par				Amortized cost				Carrying value				value to par					9/30/11
	Amount		%		Amount		%		Amount		%		9/30/11			6/30/11		vs 6/30/11
Predominantly bank CDOs
by original ratings:
AAA	$	946		36%	$	828		38%	$	571		47%		60%			65%		(5)%
A		948		36%		732		34%		191		16%		20%			30%		(10)%
BBB		67		3%		31		1%		2		0%		3%			9%		(6)%
Total bank CDOs		1,961		75%		1,591		73%		764		63%		39%			47%		(8)%

Insurance only CDOs		468		18%		461		21%		369		30%		79%			82%		(3)%

Other CDOs		190		7%		124		6%		85		7%		45%			45%		0%

Total CDOs	$	2,619		100%	$	2,176		100%	$	1,218		100%		47%	%		53%		(6)%

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ZIONS BANCORPORATION

Press Release – Page 6

October 24, 2011

Noninterest Income

Noninterest income for the third quarter of 2011 was $121.0 million, compared to $128.3 million in the second quarter of 2011. The decline primarily resulted from the net effect of (1) an $8.2 million increase in credit-related OTTI as discussed previously; (2) fixed income securities gains of approximately $13.0 million as discussed previously; (3) a decrease in dividends and other investment income of $7.9 million because of several miscellaneous gains recognized in the second quarter; (4) a decrease in fair value and nonhedge derivative income due to $5.3 million in total return swap fees that will be recognized on a quarterly basis instead of the initial annual prepayment made in the third quarter of 2010, and $3.5 million lower income from futures contracts used in hedging interest rates; and (5) equity securities gains including $5.5 million from the sale of BServ, Inc. (dba BankServ) stock that the Company acquired when it sold the assets of its NetDeposit subsidiary in September 2010.

Noninterest Expense

Noninterest expense for the third quarter of 2011 was $409.0 million compared to $416.3 million for the second quarter of 2011. Salaries and employee benefits were lower compared to the second quarter of 2011 which included increased compensation expense related to share-based awards and adjustments to benefit-related accruals.

Conference Call

Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 24, 2011). 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 14824903, 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, October 24, 2011, until midnight ET on Monday, October 31, 2011, by dialing 855-859-2056 (domestic and international) and entering the passcode 14824903. The webcast of the conference call will also be archived and available for 30 days.

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ZIONS BANCORPORATION

Press Release – Page 7

October 24, 2011

About Zions Bancorporation

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

Forward-Looking Information

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

be required by the Financial Accounting Standards Board or other regulatory agencies.

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ZIONS BANCORPORATION

Press Release – Page 8

October 24, 2011

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.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended
(In thousands, except share, per share, and ratio data)	September 30,			June 30,			March 31,			December 31,			September 30,
	2011			2011			2011			2010			2010
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value per common share		24.78			24.88			24.93			25.12			26.07
Tangible common equity per common share		18.87			18.95			18.96			19.09			19.81

SELECTED RATIOS
Return on average assets		0.84	%		0.57	%		0.42	%		(0.56	)%		(0.36	)%
Return on average common equity		5.58	%		2.53	%		1.29	%		(9.51	)%		(6.94	)%
Net interest margin		3.99	%		3.62	%		3.76	%		3.49	%		3.84	%

Capital Ratios
Tangible common equity ratio		6.90	%		6.95	%		7.01	%		6.99	%		7.03	%
Tangible equity ratio		11.56	%		11.58	%		11.36	%		11.10	%		10.78	%
Average equity to average assets		13.51	%		13.42	%		13.25	%		12.80	%		12.40	%

Risk-Based Capital Ratios1:
Tier 1 common to risk-weighted assets		9.49	%		9.36	%		9.32	%		8.95	%		8.66	%
Tier 1 leverage		13.60	%		13.44	%		13.14	%		12.56	%		12.00	%
Tier 1 risk-based capital		16.04	%		15.87	%		15.46	%		14.78	%		13.97	%
Total risk-based capital		18.05	%		18.01	%		17.77	%		17.15	%		16.54	%

Taxable-equivalent net interest income	$	475,580		$	421,226		$	429,231		$	412,001		$	457,172

Weighted average common and common-
equivalent shares outstanding		182,857,702			182,728,185			181,997,687			178,097,851			172,864,619
Common shares outstanding		184,294,782			184,311,290			183,854,486			182,784,086			177,202,340

1 Ratios for September 30, 2011 are estimates.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
CONSOLIDATED BALANCE SHEETS
	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except share amounts)	2011			2011			2011			2010			2010
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	1,102,768		$	1,035,028		$	949,140		$	924,126		$	1,060,646
Money market investments:
Interest-bearing deposits		5,118,066			4,924,992			4,689,323			4,576,008			4,468,778
Federal funds sold and security resell agreements		165,106			123,132			67,197			130,305			116,458
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$715,608, $762,998, $758,169, $788,354, and $783,362)		791,569			829,702			820,636			840,642			841,573
Available-for-sale, at fair value		3,970,602			4,084,963			4,130,342			4,205,742			3,295,864
Trading account, at fair value		49,782			51,152			56,549			48,667			42,811
		4,811,953			4,965,817			5,007,527			5,095,051			4,180,248

Loans held for sale		159,300			158,943			195,055			206,286			217,409

Loans:
Loans and leases excluding FDIC-supported loans		36,050,339			36,092,361			35,753,638			35,896,395			36,579,470
FDIC-supported loans		800,530			853,937			912,881			971,377			1,089,926
		36,850,869			36,946,298			36,666,519			36,867,772			37,669,396
Less:
Unearned income and fees, net of related costs		126,361			122,721			120,725			120,341			120,037
Allowance for loan losses		1,148,903			1,237,733			1,349,800			1,440,341			1,529,955
Loans and leases, net of allowance		35,575,605			35,585,844			35,195,994			35,307,090			36,019,404

Other noninterest-bearing investments		860,045			858,678			858,958			858,367			858,402
Premises and equipment, net		726,503			722,600			721,487			720,985			719,592
Goodwill		1,015,129			1,015,161			1,015,161			1,015,161			1,015,161
Core deposit and other intangibles		72,571			77,346			82,199			87,898			94,128
Other real estate owned		203,173			238,990			268,876			299,577			356,923
Other assets		1,721,101			1,654,883			1,756,791			1,814,032			1,940,627
	$	51,531,320		$	51,361,414		$	50,807,708		$	51,034,886		$	51,047,776

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	14,911,729		$	14,475,383		$	13,790,615		$	13,653,929		$	13,264,415
Interest-bearing:
Savings and NOW		6,711,002			6,555,306			6,494,013			6,362,138			6,394,964
Money market		14,576,527			14,948,065			14,874,507			15,090,833			15,398,157
Time under $100,000		1,696,302			1,782,573			1,859,005			1,941,211			2,037,318
Time $100,000 and over		1,840,453			1,992,836			2,085,487			2,232,238			2,417,779
Foreign		1,627,135			1,437,067			1,488,807			1,654,651			1,447,507
		41,363,148			41,191,230			40,592,434			40,935,000			40,960,140

Securities sold, not yet purchased		30,070			42,709			101,406			42,548			41,943
Federal funds purchased and security repurchase agreements		630,901			630,058			727,764			722,258			738,551
Other short-term borrowings		125,290			147,945			182,167			166,394			236,507
Long-term debt		1,898,439			1,879,669			1,913,083			1,942,622			1,939,395
Reserve for unfunded lending commitments		98,062			100,264			102,168			111,708			97,899
Other liabilities		466,493			456,448			444,099			467,142			538,750
Total liabilities		44,612,403			44,448,323			44,063,121			44,387,672			44,553,185

Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares		2,354,523			2,329,370			2,162,399			2,056,672			1,875,463
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 184,294,782, 184,311,290,
183,854,486, 182,784,086, and 177,202,340 shares		4,160,697			4,158,369			4,178,369			4,163,619			4,070,963
Retained earnings		994,380			931,345			904,247			889,284			1,001,559
Accumulated other comprehensive income (loss)		(588,834	)		(504,491	)		(499,163	)		(461,296	)		(452,553	)
Controlling interest shareholders’ equity		6,920,766			6,914,593			6,745,852			6,648,279			6,495,432
Noncontrolling interests		(1,849	)		(1,502	)		(1,265	)		(1,065	)		(841	)
Total shareholders’ equity		6,918,917			6,913,091			6,744,587			6,647,214			6,494,591
	$	51,531,320		$	51,361,414		$	50,807,708		$	51,034,886		$	51,047,776

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended
(In thousands, except per share amounts)	September 30,			June 30,			March 31,			December 31,			September 30,
	2011			2011			2011			2010			2010
Interest income:
Interest and fees on loans	$	520,133		$	523,741		$	518,157		$	539,452		$	550,489
Interest on money market investments		3,482			3,199			2,843			3,419			3,487
Interest on securities:
Held-to-maturity		8,937			9,009			8,664			8,149			6,063
Available-for-sale		21,382			22,179			22,276			22,472			21,353
Trading account		462			538			452			546			542
Total interest income		554,396			558,666			552,392			574,038			581,934

Interest expense:
Interest on deposits		31,093			34,257			36,484			40,915			46,368
Interest on short-term borrowings		1,501			1,783			2,180			2,442			3,566
Interest on long-term debt		51,207			106,454			89,872			123,813			80,125
Total interest expense		83,801			142,494			128,536			167,170			130,059

Net interest income		470,595			416,172			423,856			406,868			451,875
Provision for loan losses		14,553			1,330			60,000			173,242			184,668
Net interest income after provision for loan losses		456,042			414,842			363,856			233,626			267,207

Noninterest income:
Service charges and fees on deposit accounts		44,154			42,878			44,530			46,498			49,733
Other service charges, commissions and fees		45,308			43,958			41,685			41,124			41,780
Trust and wealth management income		6,269			7,179			6,754			6,512			6,310
Capital markets and foreign exchange		7,729			8,358			7,214			10,309			8,055
Dividends and other investment income		9,356			17,239			8,028			7,621			8,874
Loan sales and servicing income		6,165			9,836			6,013			8,943			8,390
Fair value and nonhedge derivative income (loss)		(5,718	)		4,195			1,220			292			(16,755	)
Equity securities gains (losses), net		5,289			(1,636	)		897			(246	)		(1,082	)
Fixed income securities gains (losses), net		13,035			(2,396	)		(59	)		841			8,428
Impairment losses on investment securities:
Impairment losses on investment securities		(55,530	)		(6,339	)		(3,105	)		(15,243	)		(73,082	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		42,196			1,181			-			2,923			49,370
Net impairment losses on investment securities		(13,334	)		(5,158	)		(3,105	)		(12,320	)		(23,712	)
Other		2,789			3,896			20,966			3,665			20,179
Total noninterest income		121,042			128,349			134,143			113,239			110,200

Noninterest expense:
Salaries and employee benefits		216,855			222,138			215,010			207,288			207,947
Occupancy, net		29,040			27,588			28,010			27,957			29,292
Furniture and equipment		26,852			26,153			25,662			24,771			25,591
Other real estate expense		20,564			17,903			24,167			25,467			44,256
Credit related expense		15,379			17,124			14,913			19,284			17,438
Provision for unfunded lending commitments		(2,202	)		(1,904	)		(9,540	)		13,809			1,104
Legal and professional services		8,897			8,432			6,689			11,372			9,305
Advertising		6,511			5,962			6,911			7,099			5,575
FDIC premiums		12,573			15,232			24,101			25,636			25,706
Amortization of core deposit and other intangibles		4,773			4,855			5,701			6,230			6,296
Other		69,776			72,773			66,751			74,443			83,534
Total noninterest expense		409,018			416,256			408,375			443,356			456,044

Income (loss) before income taxes		168,066			126,935			89,624			(96,491	)		(78,637	)
Income taxes (benefit)		59,348			54,325			37,033			(24,097	)		(31,180	)
Net income (loss)		108,718			72,610			52,591			(72,394	)		(47,457	)
Net income (loss) applicable to noncontrolling interests		(375	)		(265	)		(226	)		(194	)		(132	)
Net income (loss) applicable to controlling interest		109,093			72,875			52,817			(72,200	)		(47,325	)
Preferred stock dividends		(43,928	)		(43,837	)		(38,050	)		(38,087	)		(33,144	)
Net earnings (loss) applicable to common shareholders	$	65,165		$	29,038		$	14,767		$	(110,287	)	$	(80,469	)

Weighted average common shares outstanding during the period:
Basic shares		182,676			182,472			181,707			178,098			172,865
Diluted shares		182,858			182,728			181,998			178,098			172,865

Net earnings (loss) per common share:
Basic	$	0.35		$	0.16		$	0.08		$	(0.62	)	$	(0.47	)
Diluted		0.35			0.16			0.08			(0.62	)		(0.47	)

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12

Loan Balances By Portfolio Type
(Unaudited)

(In millions)	September 30,		June 30,		March 31,		December 31,		September 30,
		2011		2011		2011		2010		2010
Commercial:
Commercial and industrial	$	9,787	$	9,573	$	9,276	$	9,167	$	9,152
Leasing		410		406		409		410		402
Owner occupied		8,334		8,427		8,252		8,218		8,345
Municipal		441		449		435		439		334
Total commercial		18,972		18,855		18,372		18,234		18,233

Commercial real estate:
Construction and land development		2,477		2,757		2,955		3,499		4,206
Term		7,743		7,722		7,857		7,650		7,550
Total commercial real estate		10,220		10,479		10,812		11,149		11,756

Consumer:
Home equity credit line		2,158		2,140		2,120		2,142		2,157
1-4 family residential		3,884		3,801		3,620		3,499		3,509
Construction and other consumer real estate		304		308		324		343		366
Bankcard and other revolving plans		278		280		276		297		287
Other		234		229		230		233		271
Total consumer		6,858		6,758		6,570		6,514		6,590

FDIC-supported loans 1		801		854		913		971		1,090
Total loans	$	36,851	$	36,946	$	36,667	$	36,868	$	37,669

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)	September 30,		June 30,		March 31,		December 31,		September 30,
		2011		2011		2011		2010		2010
Balance sheet:

Change in assets from reestimation of cash flows –
increase (decrease):
FDIC-supported loans	$	20,642	$	21,467	$	19,257	$	19,006	$	18,713
FDIC indemnification asset (included in other assets)		(15,431)		(14,975)		(13,088)		(15,205)		(14,790)

Balance at end of period:
FDIC-supported loans		800,530		853,937		912,881		971,377		1,089,926
FDIC indemnification asset (included in other assets)		135,299		150,557		172,170		195,515		233,631

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
		2011		2011		2011		2010		2010
Statement of income:

Interest income:
Interest and fees on loans	$	20,642	$	21,467	$	19,257	$	19,006	$	18,713

Noninterest expense:
Other noninterest expense		15,431		14,975		13,088		15,205		14,790
Net increase in pretax income	$	5,211	$	6,492	$	6,169	$	3,801	$	3,923

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13

Nonperforming Lending-Related Assets
(Unaudited)

(Amounts in thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
	2011			2011			2011			2010			2010

Nonaccrual loans	$	1,038,803		$	1,243,304		$	1,379,521		$	1,492,869		$	1,809,570
Other real estate owned		170,023			195,005			225,005			259,614			304,498
Nonperforming lending-related assets, excluding
FDIC-supported assets		1,208,826			1,438,309			1,604,526			1,752,483			2,114,068

FDIC-supported nonaccrual loans		29,082			30,414			32,935			35,837			126,634
FDIC-supported other real estate owned		33,150			43,985			43,871			39,963			52,425
FDIC-supported nonperforming assets		62,232			74,399			76,806			75,800			179,059
Total nonperforming lending-related assets	$	1,271,058		$	1,512,708		$	1,681,332		$	1,828,283		$	2,293,127

Ratio of nonperforming lending-related assets to net loans
and leases 1 and other real estate owned		3.43	%		4.06	%		4.54	%		4.91	%		6.01	%

Accruing loans past due 90 days or more, excluding
FDIC-supported loans	$	15,863		$	19,195		$	14,830		$	23,218		$	74,829
FDIC-supported loans past due 90 days or more		85,714			89,554			94,715			118,760			9,689
Ratio of accruing loans past due 90 days or more to
net loans and leases 1		0.28	%		0.29	%		0.30	%		0.38	%		0.22	%

Nonaccrual loans and accruing loans past due 90 days or more	$	1,169,462		$	1,382,467		$	1,522,001		$	1,670,684		$	2,020,722
Ratio of nonaccrual loans and accruing loans past due
90 days or more to net loans and leases 1		3.17	%		3.74	%		4.14	%		4.52	%		5.35	%

Accruing loans past due 30 - 89 days, excluding
FDIC-supported loans	$	174,250		$	170,782		$	233,601		$	262,714		$	303,472
FDIC-supported loans past due 30 - 89 days		13,816			21,520			22,492			27,203			8,919

Restructured loans included in nonaccrual loans	$	308,159		$	324,077		$	344,024		$	367,135		$	354,434
Restructured loans on accrual		430,253			393,602			366,440			388,006			334,416

Classified loans, excluding FDIC-supported loans		2,361,574			2,675,741			3,045,509			3,408,312			4,437,871


1 Includes loans held for sale.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14

Allowance for Credit Losses
(Unaudited)

	Three Months Ended
(Amounts in thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
	2011			2011			2011			2010			2010
Allowance for Loan Losses
Balance at beginning of period	$	1,237,733		$	1,349,800		$	1,440,341		$	1,529,955		$	1,563,753
Add:
Provision for losses		14,553			1,330			60,000			173,242			184,668
Change in allowance covered by FDIC indemnification		(1,647	)		(1,228	)		(9,048	)		(11,930	)		17,190
Deduct:
Gross loan and lease charge-offs		(129,146	)		(142,444	)		(167,968	)		(282,803	)		(263,673	)
Net charge-offs recoverable from FDIC		127			1,066			4,534			5,884			5,674
Recoveries		27,283			29,209			21,941			25,993			22,343
Net loan and lease charge-offs		(101,736	)		(112,169	)		(141,493	)		(250,926	)		(235,656	)
Balance at end of period	$	1,148,903		$	1,237,733		$	1,349,800		$	1,440,341		$	1,529,955

Ratio of allowance for loan losses to net loans and
leases, at period end		3.13	%		3.36	%		3.69	%		3.92	%		4.07	%

Ratio of allowance for loan losses to nonperforming
loans, at period end		107.59	%		97.17	%		95.56	%		94.22	%		79.02	%

Annualized ratio of net loan and lease charge-offs to
average loans		1.11	%		1.22	%		1.54	%		2.71	%		2.50	%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	100,264		$	102,168		$	111,708		$	97,899		$	96,795
Provision charged (credited) to earnings		(2,202	)		(1,904	)		(9,540	)		13,809			1,104
Balance at end of period	$	98,062		$	100,264		$	102,168		$	111,708		$	97,899

Total Allowance for Credit Losses
Allowance for loan losses	$	1,148,903		$	1,237,733		$	1,349,800		$	1,440,341		$	1,529,955
Reserve for unfunded lending commitments		98,062			100,264			102,168			111,708			97,899
Total allowance for credit losses	$	1,246,965		$	1,337,997		$	1,451,968		$	1,552,049		$	1,627,854

Ratio of total allowance for credit losses
to net loans and leases outstanding, at period end		3.40	%		3.63	%		3.97	%		4.22	%		4.34	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15

Nonaccrual Loans By Portfolio Type
(Excluding FDIC-Supported Loans)
(Unaudited)

(In millions)	September 30,		June 30,			March 31,			December 31,			September 30,
		2011		2011			2011			2010			2010

Loans held for sale	$	18	$	17		$	21		$	-		$	-

Commercial:
Commercial and industrial		176		186			213			224			284
Leasing		1		1			1			1			2
Owner occupied		268		314			317			342			414
Municipal		-		6			2			2			-
Total commercial		445		507			533			569			700

Commercial real estate:
Construction and land development		245		344			399			494			660
Term		189		233			270			264			263
Total commercial real estate		434		577			669			758			923

Consumer:
Home equity credit line		15		13			13			14			16
1-4 family residential		108		110			119			125			145
Construction and other consumer real estate		16		16			21			24			22
Bankcard and other revolving plans		-		-			-			1			1
Other		3		3			4			2			3
Total consumer		142		142			157			166			187
Total nonaccrual loans	$	1,039	$	1,243		$	1,380		$	1,493		$	1,810


Net Charge-Offs By Portfolio Type
(Unaudited)
	Three Months Ended
(In millions)	September 30,		June 30,			March 31,			December 31,			September 30,
		2011		2011			2011			2010			2010
Commercial:
Commercial and industrial	$	27	$	18		$	31		$	55		$	72
Leasing		-		-			-			3			3
Owner occupied		27		19			22			43			32
Municipal		-		-			-			-			-
Total commercial		54		37			53			101			107

Commercial real estate:
Construction and land development		17		37			48			80			71
Term		15		18			22			44			31
Total commercial real estate		32		55			70			124			102

Consumer:
Home equity credit line		4		6			6			9			6
1-4 family residential		5		11			8			14			15
Construction and other consumer real estate		4		2			4			2			7
Bankcard and other revolving plans		3		2			3			3			2
Other		-		-			2			3			3
Total consumer loans		16		21			23			31			33

Charge-offs recoverable from FDIC		-		(1	)		(5	)		(5	)		(6	)
Total net charge-offs	$	102	$	112		$	141		$	251		$	236

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)

	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2011						June 30, 2011						March 31, 2011
(In thousands)	Average			Average			Average			Average			Average			Average
	balance			rate			balance			rate			balance			rate
ASSETS
Money market investments	$	5,519,190			0.25	%	$	4,792,704			0.27	%	$	4,513,934			0.26	%
Securities:
Held-to-maturity		821,510			5.39	%		821,768			5.51	%		833,000			5.38	%
Available-for-sale		3,951,546			2.21	%		4,031,836			2.27	%		4,107,003			2.28	%
Trading account		55,214			3.32	%		60,894			3.54	%		49,769			3.68	%
Total securities		4,828,270			2.76	%		4,914,498			2.83	%		4,989,772			2.81	%

Loans held for sale		118,054			4.08	%		144,048			4.25	%		160,073			4.06	%

Loans:
Net loans and leases excluding FDIC-supported loans 1		35,964,005			5.39	%		35,960,395			5.47	%		35,715,679			5.51	%
FDIC-supported loans		819,696			15.79	%		879,290			15.65	%		952,078			14.13	%
Total loans and leases		36,783,701			5.62	%		36,839,685			5.71	%		36,667,757			5.74	%
Total interest-earning assets		47,249,215			4.70	%		46,690,935			4.84	%		46,331,536			4.88	%
Cash and due from banks		1,036,218						1,036,501						1,078,869
Allowance for loan losses		(1,210,111	)					(1,321,098	)					(1,423,701	)
Goodwill		1,015,161						1,015,161						1,015,161
Core deposit and other intangibles		75,153						79,950						85,372
Other assets		3,407,914						3,490,867						3,617,747
Total assets	$	51,573,550					$	50,992,316					$	50,704,984

LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	6,637,565			0.27	%	$	6,548,676			0.29	%	$	6,401,249			0.30	%
Money market		14,838,406			0.43	%		14,827,231			0.48	%		15,018,892			0.51	%
Time under $100,000		1,750,372			0.86	%		1,835,172			0.94	%		1,909,259			1.02	%
Time $100,000 and over		1,879,652			0.95	%		2,019,469			1.02	%		2,147,502			1.09	%
Foreign		1,494,995			0.55	%		1,490,636			0.58	%		1,438,979			0.58	%
Total interest-bearing deposits		26,600,990			0.46	%		26,721,184			0.51	%		26,915,881			0.55	%
Borrowed funds:
Securities sold, not yet purchased		31,077			4.25	%		37,989			4.16	%		32,054			4.34	%
Federal funds purchased and security
repurchase agreements		616,150			0.12	%		660,017			0.12	%		703,976			0.13	%
Other short-term borrowings		140,252			2.79	%		169,574			2.81	%		173,349			3.76	%
Long-term debt		1,893,251			10.73	%		1,897,887			22.50	%		1,939,921			18.79	%
Total borrowed funds		2,680,730			7.80	%		2,765,467			15.70	%		2,849,300			13.10	%
Total interest-bearing liabilities		29,281,720			1.14	%		29,486,651			1.94	%		29,765,181			1.75	%
Noninterest-bearing deposits		14,795,706						14,163,514						13,672,638
Other liabilities		529,343						499,072						548,101
Total liabilities		44,606,769						44,149,237						43,985,920
Shareholders’ equity:
Preferred equity		2,334,784						2,246,088						2,077,555
Common equity		4,633,555						4,598,336						4,642,639
Controlling interest shareholders’ equity		6,968,339						6,844,424						6,720,194
Noncontrolling interests		(1,558	)					(1,345	)					(1,130	)
Total shareholders’ equity		6,966,781						6,843,079						6,719,064
Total liabilities and shareholders’ equity	$	51,573,550					$	50,992,316					$	50,704,984

Spread on average interest-bearing funds					3.56	%					2.90	%					3.13	%

Net yield on interest-earning assets					3.99	%					3.62	%					3.76	%

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

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 17

GAAP to Non-GAAP Reconciliation
(Unaudited)
			Three Months Ended
			September 30, 2011							June 30, 2011
(Amounts in thousands)						Diluted							Diluted
			Amount			EPS				Amount			EPS
	1.	Net Earnings Excluding the Effects of the Discount Amortization on
		Convertible Subordinated Debt and Additional Accretion on Acquired Loans

		Net earnings applicable to common shareholders (GAAP)	$	65,165		$	0.35			$	29,038		$	0.16
		Addback for the after-tax impact of:
		Discount amortization on convertible subordinated debt		6,574			0.04				7,064			0.04
		Accelerated discount amortization on convertible subordinated debt		6,095			0.03				50,037			0.27
		Additional accretion of interest income on acquired loans, net of expense		(3,019	)		(0.02	)			(3,781	)		(0.02	)
		Net earnings excluding the effects of the discount amortization on convertible
		subordinated debt and additional accretion on acquired loans (non-GAAP)	$	74,815		$	0.40			$	82,358		$	0.45

			Three Months Ended
			September 30, 2011							June 30, 2011

	2.	Core Net Interest Income (NII)/Net Interest Margin (NIM)	NII			NIM				NII			NIM

		Net interest income/net interest margin as reported (GAAP)	$	470,595			3.99	%	1	$	416,172			3.62	%
		Addback for the pretax impact of:
		Discount amortization on convertible subordinated debt		10,645			0.09	%			11,439			0.10	%
		Accelerated discount amortization on convertible subordinated debt		7,498			0.06	%			61,353			0.53	%
		Additional accretion of interest income on acquired loans		(20,642	)		(0.17	)%			(21,467	)		(0.18	)%
		Core net interest income/net interest margin (non-GAAP)	$	468,096			3.97	%		$	467,497			4.07	%

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

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

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

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

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

- # # # -

For: ZIONS BANCORPORATION

Contact: James Abbott

One South Main, 15th Floor

Tel: (801) 524-4787

Salt Lake City, Utah

October 24, 2011

Harris H. Simmons

Chairman/Chief Executive Officer