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 - January 23, 2012

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ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ Reports

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***FOR IMMEDIATE RELEASE***

ZIONS BANCORPORATION REPORTS EARNINGS OF $0.24

PER DILUTED COMMON SHARE FOR FOURTH QUARTER 2011

SALT LAKE CITY, January 23, 2012 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported fourth quarter net earnings applicable to common shareholders of $44.4 million or $0.24 per diluted common share, compared to $65.2 million or $0.35 per diluted share for the third quarter of 2011. Excluding the noncash effects of the discount amortization on convertible subordinated debt and additional accretion (net of expense) on acquired loans, net earnings were $53.5 million or $0.30 per diluted share for the fourth quarter of 2011, compared to $74.8 million or $0.40 per diluted share for the third quarter of 2011.

Fourth Quarter 2011 Highlights

Nonaccrual loans decreased 15% to $0.9 billion, compared to a decrease of 16% to $1.1 billion in the third quarter.

Other real estate owned decreased 25% to $153 million, compared to a decrease of 15% to $203 million in the third quarter.

Net charge-offs decreased 7% to $95 million, compared to a decrease of 10% to $102 million in the third quarter.

Average loans and leases, excluding FDIC-supported loans, increased 0.4% or $158 million to $36.1 billion, compared to a $4 million increase in the third quarter.

The estimated Tier 1 common to risk-weighted assets ratio was 9.55% compared to 9.53% in the third quarter.

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ZIONS BANCORPORATION

Press Release – Page 2

January 23, 2012

Net interest income decreased 1.8% to $462 million from $471 million in the third quarter. The net interest margin decreased 13 basis points to 3.86% from 3.99% in the third quarter. The increase in average cash-related balances accounted for 8 basis points of the decrease.

Average total deposits increased $804 million, compared to an increase of $512 million in the third quarter. Average cash-related balances increased $1.1 billion, compared to an increase of $726 million in the third quarter.

“We are again pleased with the significant improvement in credit quality this quarter, which we expect to continue and to result in lower net charge-offs in 2012,” said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, “We also are pleased with the somewhat stronger loan growth this quarter and with signs of strengthening loan pipelines, particularly for business loans. Revenue growth was a challenge for us, as it was for the whole industry, in 2011.” Mr. Simmons concluded, “However, we see signs of stabilizing loan pricing, which with continued loan growth and improving credit quality should lead to improved results in 2012.”

Asset Quality

Nonperforming lending-related assets declined approximately 16% to $1.1 billion at December 31, 2011 from $1.3 billion at September 30, 2011. Nonaccrual loans declined approximately 15% to $0.9 billion at December 31, 2011 from $1.1 billion at September 30, 2011. Additions to nonaccrual loans declined to $209 million during the fourth quarter of 2011, compared to $233 million during the third quarter of 2011. Nonaccrual loans that are current as to principal and interest were approximately 41% of the balance at December 31, 2011, compared to 39% at September 30, 2011. Other real estate owned declined approximately 25% to $153 million at December 31, 2011, compared to $203 million at September 30, 2011.

The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned decreased to 2.83% at December 31, 2011, compared to 3.43% at September 30, 2011.

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ZIONS BANCORPORATION

Press Release – Page 3

January 23, 2012

Classified loans decreased approximately 13% to $2.1 billion at December 31, 2011, compared to 12% to $2.4 billion at September 30, 2011. Additions to classified loans decreased to $330 million during the fourth quarter of 2011, compared to $357 million during the third quarter of 2011. Approximately 72% of classified loans were current as to principal and interest for the fourth quarter of 2011, unchanged from the third quarter of 2011.

Net loan and lease charge-offs were $95 million for the fourth quarter of 2011, compared to $102 million for the third quarter of 2011. Net charge-offs declined primarily in commercial and industrial loans.

The Company had a negative provision for loan losses, $(1.5) million, for the fourth quarter of 2011, compared to a provision of $14.6 million for the third quarter of 2011. The decline mainly resulted from improvement in the credit quality indicators previously discussed. The allowance for credit losses was $1.2 billion, or 3.10% of net loans and leases at December 31, 2011, compared to $1.3 billion, or 3.40% of net loans and leases at September 30, 2011. The allowance for credit losses was 127% of nonaccrual loans at December 31, 2011, compared to 117% at September 30, 2011, and equaled approximately 3.0 years’ coverage of annualized net charge-offs at December 31, 2011.

Loans

Average loans and leases, excluding FDIC supported loans, increased $158 million or 0.4% to $36.1 billion during the fourth quarter of 2011, compared to an increase of $4 million during the third quarter of 2011. Net increases in commercial and industrial loans, primarily at Amegy Bank and Zions Bank, along with net increases in term commercial real estate primarily at California Bank & Trust, were offset by decreases in construction and land development, commercial owner occupied, and FDIC-supported loans. FDIC-supported loans in the aggregate continue to perform better than originally forecasted.

Deposits

Average total deposits for the fourth quarter of 2011 increased $804 million or 1.9% to $42.2 billion compared to $41.4 billion for the third quarter of 2011. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the fourth quarter of 2011 which were $15.5 billion, compared to $14.8 billion for the third quarter of 2011. The large majority of the increase occurred in commercial accounts at Amegy Bank. The ratio of loans to deposits was 86.9% at December 31, 2011, compared to 89.1% at September 30, 2011.

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ZIONS BANCORPORATION

Press Release – Page 4

January 23, 2012

Net Interest Income

Net interest income decreased 1.8% to $462 million for the fourth quarter of 2011, compared to $471 million for the third quarter of 2011; the decrease was primarily due to rate resets on older vintage longer-term loans. The net interest margin decreased 13 basis points to 3.86% in the fourth quarter of 2011, compared to 3.99% in the third quarter of 2011; approximately 8 basis points of the decline was attributable to an increase in average cash-related balances to $6.6 billion for the fourth quarter, compared to $5.5 billion for the third quarter.

The calculations of core net interest income and the core net interest margin adjust for discount amortization on convertible subordinated debt and accretion on acquired loans. For the fourth quarter of 2011, these adjustments substantially offset each other as core net interest income at $461 million was substantially the same as net interest income, and the core net interest margin was the same as the net interest margin.

Investment Securities

During the fourth quarter of 2011, the Company recognized credit-related OTTI on CDOs of $12.1 million or $0.04 per diluted share, compared to $13.3 million or $0.04 per diluted share during the third quarter of 2011. The OTTI this quarter included $4.3 million from a homebuilder bankruptcy within the CDO pool and $4.6 million that resulted primarily from assumption increases in the medium-term PDs of the best performing banks. In its CDO portfolio, the Company had exposure to 24 of the 92 bank failures that occurred in 2011. At the time of default, the Company’s weighted average PD for the 24 failed banks was 96%.

The following table shows the changes in carrying value for CDOs at December 31, 2011 compared to September 30, 2011:

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ZIONS BANCORPORATION

Press Release – Page 5

January 23, 2012

	December 31, 2011												% of carrying				Change
(Amounts in millions)	Par				Amortized cost				Carrying value				value to par				12/31/11
	Amount		%		Amount		%		Amount		%		12/31/11		9/30/11		vs 9/30/11
Predominantly bank CDOs
by original ratings:
AAA	$	944		36%	$	827		38%	$	577		47%		61%		60%		1%
A		948		36%		727		34%		194		16%		20%		20%		0%
BBB		67		3%		24		1%		3		0%		4%		3%		1%
Total bank CDOs		1,959		75%		1,578		73%		774		63%		40%		39%		1%

Insurance only CDOs		461		18%		455		21%		363		30%		79%		79%		0%

Other CDOs		189		7%		123		6%		83		7%		44%		45%		(1)%

Total CDOs	$	2,609		100%	$	2,156		100%	$	1,220		100%		47%		47%		0%

Noninterest Income

Noninterest income for the fourth quarter of 2011 was $98.3 million, compared to $121.0 million in the third quarter of 2011. The decrease included an $8 million reduction, partially offset by other items, in other service charges, commissions and fees due to the impact of the Durbin amendment. Other decreases in noninterest income during the quarter primarily resulted from the recognition in the third quarter of both the $13 million fixed income securities gains and the $5.5 million equity securities gain from the sale of BServ, Inc. (dba BankServ) stock.

Noninterest Expense

Noninterest expense for the fourth quarter of 2011 was $425.0 million compared to $409.0 million for the third quarter of 2011. The increase in salaries and employee benefits primarily resulted from one-time accrual adjustments of approximately $6 million for retirement-related benefits. Excluding employee benefits, salaries and bonuses in the fourth quarter of 2011 were lower than the third quarter of 2011 and the fourth quarter of 2010. Other significant increases included the provision for unfunded lending commitments, legal and professional services, and other related accruals. Notable decreases included other real estate and credit related expenses.

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ZIONS BANCORPORATION

Press Release – Page 6

January 23, 2012

Shareholders’ Equity

Effective November 16, 2011, approximately $15.0 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 14,957 shares of Series C to the Company’s preferred stock. Accelerated discount amortization on the converted debt increased interest expense by a pretax noncash amount of approximately $5.8 million ($4.7 million after-tax) in the fourth quarter of 2011, compared to $7.5 million ($6.1 million after-tax) in the third quarter of 2011.

The estimated Tier 1 common to risk-weighted assets ratio was 9.55% at December 31, 2011, compared to 9.53% at September 30, 2011.

Conference Call

Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 23, 2012). Media representatives, analysts and the public are invited to listen to this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 36356880, 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, January 23, 2012, until midnight ET on Monday, January 30, 2012, by dialing 404-537-3406 (domestic and international) and entering the passcode 36356880. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation

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

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ZIONS BANCORPORATION

Press Release – Page 7

January 23, 2012

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.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 8
FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended
(In thousands, except share, per share, and ratio data)	December 31,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2010
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value per common share		25.02			24.78			24.88			24.93			25.12
Tangible common equity per common share		19.14			18.87			18.95			18.96			19.09

SELECTED RATIOS
Return on average assets		0.67	%		0.84	%		0.57	%		0.42	%		(0.56	)%
Return on average common equity		3.84	%		5.58	%		2.53	%		1.29	%		(9.51	)%
Net interest margin		3.86	%		3.99	%		3.62	%		3.76	%		3.49	%

Capital Ratios
Tangible common equity ratio		6.77	%		6.90	%		6.95	%		7.01	%		6.99	%
Tangible equity ratio		11.33	%		11.56	%		11.58	%		11.36	%		11.10	%
Average equity to average assets		13.27	%		13.51	%		13.42	%		13.25	%		12.80	%

Risk-Based Capital Ratios1:
Tier 1 common to risk-weighted assets		9.55	%		9.53	%		9.36	%		9.32	%		8.95	%
Tier 1 leverage		13.39	%		13.48	%		13.44	%		13.14	%		12.56	%
Tier 1 risk-based capital		16.10	%		16.10	%		15.87	%		15.46	%		14.78	%
Total risk-based capital		18.04	%		18.12	%		18.01	%		17.77	%		17.15	%

Taxable-equivalent net interest income	$	466,699		$	475,580		$	421,226		$	429,231		$	412,001

Weighted average common and common-
equivalent shares outstanding		182,823,190			182,857,702			182,728,185			181,997,687			178,097,851
Common shares outstanding		184,135,388			184,294,782			184,311,290			183,854,486			182,784,086

1 Ratios for December 31, 2011 are estimates.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
CONSOLIDATED BALANCE SHEETS
	December 31,			September 30,			June 30,			March 31,			December 31,
(In thousands, except share amounts)	2011			2011			2011			2011			2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	1,224,350		$	1,102,768		$	1,035,028		$	949,140		$	924,126
Money market investments:
Interest-bearing deposits		7,020,895			5,118,066			4,924,992			4,689,323			4,576,008
Federal funds sold and security resell agreements		102,159			165,106			123,132			67,197			130,305
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$729,974, $715,608, $762,998, $758,169, and $788,354)		807,804			791,569			829,702			820,636			840,642
Available-for-sale, at fair value		3,230,795			3,970,602			4,084,963			4,130,342			4,205,742
Trading account, at fair value		40,273			49,782			51,152			56,549			48,667
		4,078,872			4,811,953			4,965,817			5,007,527			5,095,051

Loans held for sale		201,590			159,300			158,943			195,055			206,286

Loans:
Loans and leases excluding FDIC-supported loans		36,526,661			36,050,339			36,092,361			35,753,638			35,896,395
FDIC-supported loans		751,091			800,530			853,937			912,881			971,377
		37,277,752			36,850,869			36,946,298			36,666,519			36,867,772
Less:
Unearned income and fees, net of related costs		133,100			126,361			122,721			120,725			120,341
Allowance for loan losses		1,049,958			1,148,903			1,237,733			1,349,800			1,440,341
Loans and leases, net of allowance		36,094,694			35,575,605			35,585,844			35,195,994			35,307,090

Other noninterest-bearing investments		865,231			860,045			858,678			858,958			858,367
Premises and equipment, net		719,276			726,503			722,600			721,487			720,985
Goodwill		1,015,129			1,015,129			1,015,161			1,015,161			1,015,161
Core deposit and other intangibles		67,830			72,571			77,346			82,199			87,898
Other real estate owned		153,178			203,173			238,990			268,876			299,577
Other assets		1,605,905			1,721,101			1,654,883			1,756,791			1,814,032
	$	53,149,109		$	51,531,320		$	51,361,414		$	50,807,708		$	51,034,886

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	16,110,857		$	14,911,729		$	14,475,383		$	13,790,615		$	13,653,929
Interest-bearing:
Savings and NOW		7,159,101			6,711,002			6,555,306			6,494,013			6,362,138
Money market		14,616,740			14,576,527			14,948,065			14,874,507			15,090,833
Time		3,413,550			3,536,755			3,775,409			3,944,492			4,173,449
Foreign		1,575,361			1,627,135			1,437,067			1,488,807			1,654,651
		42,875,609			41,363,148			41,191,230			40,592,434			40,935,000

Securities sold, not yet purchased		44,486			30,070			42,709			101,406			42,548
Federal funds purchased and security repurchase agreements		608,098			630,901			630,058			727,764			722,258
Other short-term borrowings		70,273			125,290			147,945			182,167			166,394
Long-term debt		1,954,462			1,898,439			1,879,669			1,913,083			1,942,622
Reserve for unfunded lending commitments		102,422			98,062			100,264			102,168			111,708
Other liabilities		510,531			466,493			456,448			444,099			467,142
Total liabilities		46,165,881			44,612,403			44,448,323			44,063,121			44,387,672


Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares		2,377,560			2,354,523			2,329,370			2,162,399			2,056,672
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 184,135,388, 184,294,782,
184,311,290, 183,854,486, and 182,784,086 shares		4,163,242			4,160,697			4,158,369			4,178,369			4,163,619
Retained earnings		1,036,590			994,380			931,345			904,247			889,284
Accumulated other comprehensive income (loss)		(592,084	)		(588,834	)		(504,491	)		(499,163	)		(461,296	)
Controlling interest shareholders’ equity		6,985,308			6,920,766			6,914,593			6,745,852			6,648,279
Noncontrolling interests		(2,080	)		(1,849	)		(1,502	)		(1,265	)		(1,065	)
Total shareholders’ equity		6,983,228			6,918,917			6,913,091			6,744,587			6,647,214
	$	53,149,109		$	51,531,320		$	51,361,414		$	50,807,708		$	51,034,886

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended
(In thousands, except per share amounts)	December 31,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2010
Interest income:
Interest and fees on loans	$	504,243		$	520,133		$	523,741		$	518,157		$	539,452
Interest on money market investments		4,308			3,482			3,199			2,843			3,419
Interest on securities:
Held-to-maturity		9,106			8,937			9,009			8,664			8,149
Available-for-sale		21,268			21,382			22,179			22,276			22,472
Trading account		548			462			538			452			546
Total interest income		539,473			554,396			558,666			552,392			574,038

Interest expense:
Interest on deposits		26,645			31,093			34,257			36,484			40,915
Interest on short-term borrowings		1,221			1,501			1,783			2,180			2,442
Interest on long-term debt		49,699			51,207			106,454			89,872			123,813
Total interest expense		77,565			83,801			142,494			128,536			167,170

Net interest income		461,908			470,595			416,172			423,856			406,868
Provision for loan losses		(1,476	)		14,553			1,330			60,000			173,242
Net interest income after provision for loan losses		463,384			456,042			414,842			363,856			233,626

Noninterest income:
Service charges and fees on deposit accounts		42,873			44,154			42,878			44,530			46,498
Other service charges, commissions and fees		38,539			45,308			43,958			41,685			41,124
Trust and wealth management income		6,481			6,269			7,179			6,754			6,512
Capital markets and foreign exchange		8,106			7,729			8,358			7,214			10,309
Dividends and other investment income		7,805			9,356			17,239			8,028			7,621
Loan sales and servicing income		6,058			6,165			9,836			6,013			8,943
Fair value and nonhedge derivative income (loss)		(4,677	)		(5,718	)		4,195			1,220			292
Equity securities gains (losses), net		1,961			5,289			(1,636	)		897			(246	)
Fixed income securities gains (losses), net		1,288			13,035			(2,396	)		(59	)		841
Impairment losses on investment securities:
Impairment losses on investment securities		(12,351	)		(55,530	)		(6,339	)		(3,105	)		(15,243	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		265			42,196			1,181			-			2,923
Net impairment losses on investment securities		(12,086	)		(13,334	)		(5,158	)		(3,105	)		(12,320	)
Other		1,956			2,789			3,896			20,966			3,665
Total noninterest income		98,304			121,042			128,349			134,143			113,239

Noninterest expense:
Salaries and employee benefits		220,290			216,855			222,138			215,010			207,288
Occupancy, net		27,899			29,040			27,588			28,010			27,957
Furniture and equipment		27,036			26,852			26,153			25,662			24,771
Other real estate expense		14,936			20,564			17,903			24,167			25,467
Credit related expense		14,213			15,379			17,124			14,913			19,284
Provision for unfunded lending commitments		4,360			(2,202	)		(1,904	)		(9,540	)		13,809
Legal and professional services		14,974			8,897			8,432			6,689			11,372
Advertising		7,780			6,511			5,962			6,911			7,099
FDIC premiums		12,012			12,573			15,232			24,101			25,636
Amortization of core deposit and other intangibles		4,741			4,773			4,855			5,701			6,230
Other		76,799			69,776			72,773			66,751			74,443
Total noninterest expense		425,040			409,018			416,256			408,375			443,356

Income (loss) before income taxes		136,648			168,066			126,935			89,624			(96,491	)
Income taxes (benefit)		47,877			59,348			54,325			37,033			(24,097	)
Net income (loss)		88,771			108,718			72,610			52,591			(72,394	)
Net income (loss) applicable to noncontrolling interests		(248	)		(375	)		(265	)		(226	)		(194	)
Net income (loss) applicable to controlling interest		89,019			109,093			72,875			52,817			(72,200	)
Preferred stock dividends		(44,599	)		(43,928	)		(43,837	)		(38,050	)		(38,087	)
Net earnings (loss) applicable to common shareholders	$	44,420		$	65,165		$	29,038		$	14,767		$	(110,287	)

Weighted average common shares outstanding during the period:
Basic shares		182,703			182,676			182,472			181,707			178,098
Diluted shares		182,823			182,858			182,728			181,998			178,098

Net earnings (loss) per common share:
Basic	$	0.24		$	0.35		$	0.16		$	0.08		$	(0.62	)
Diluted		0.24			0.35			0.16			0.08			(0.62	)

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11

Loan Balances By Portfolio Type
(Unaudited)

(In millions)	December 31,		September 30,		June 30,		March 31,		December 31,
		2011		2011		2011		2011		2010
Commercial:
Commercial and industrial	$	10,394	$	9,787	$	9,573	$	9,276	$	9,167
Leasing		422		410		406		409		410
Owner occupied		8,166		8,334		8,427		8,252		8,218
Municipal		442		441		449		435		439
Total commercial		19,424		18,972		18,855		18,372		18,234

Commercial real estate:
Construction and land development		2,276		2,477		2,757		2,955		3,499
Term		7,906		7,743		7,722		7,857		7,650
Total commercial real estate		10,182		10,220		10,479		10,812		11,149

Consumer:
Home equity credit line		2,185		2,158		2,140		2,120		2,142
1-4 family residential		3,915		3,884		3,801		3,620		3,499
Construction and other consumer real estate		307		304		308		324		343
Bankcard and other revolving plans		291		278		280		276		297
Other		223		234		229		230		233
Total consumer		6,921		6,858		6,758		6,570		6,514

FDIC-supported loans 1		751		801		854		913		971
Total loans	$	37,278	$	36,851	$	36,946	$	36,667	$	36,868

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

Change in assets from reestimation of cash flows –
increase (decrease):
FDIC-supported loans	$	17,003	$	20,642	$	21,467	$	19,257	$	19,006
FDIC indemnification asset (included in other assets)		(13,126)		(15,431)		(14,975)		(13,088)		(15,205)

Balance at end of period:
FDIC-supported loans		751,091		800,530		853,937		912,881		971,377
FDIC indemnification asset (included in other assets)		120,358		135,299		150,557		172,170		195,515

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

Interest income:
Interest and fees on loans	$	17,003	$	20,642	$	21,467	$	19,257	$	19,006

Noninterest expense:
Other noninterest expense		13,126		15,431		14,975		13,088		15,205
Net increase in pretax income	$	3,877	$	5,211	$	6,492	$	6,169	$	3,801

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12

Nonperforming Lending-Related Assets
(Unaudited)

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

Nonaccrual loans	$	885,608		$	1,038,803		$	1,243,304		$	1,379,521		$	1,492,869
Other real estate owned		128,874			170,023			195,005			225,005			259,614
Nonperforming lending-related assets, excluding
FDIC-supported assets		1,014,482			1,208,826			1,438,309			1,604,526			1,752,483

FDIC-supported nonaccrual loans		24,267			29,082			30,414			32,935			35,837
FDIC-supported other real estate owned		24,304			33,150			43,985			43,871			39,963
FDIC-supported nonperforming assets		48,571			62,232			74,399			76,806			75,800
Total nonperforming lending-related assets	$	1,063,053		$	1,271,058		$	1,512,708		$	1,681,332		$	1,828,283

Ratio of nonperforming lending-related assets to net loans
and leases 1 and other real estate owned		2.83	%		3.43	%		4.06	%		4.54	%		4.91	%

Accruing loans past due 90 days or more, excluding
FDIC-supported loans	$	19,145		$	15,863		$	19,195		$	14,830		$	23,218
FDIC-supported loans past due 90 days or more		74,611			85,714			89,554			94,715			118,760
Ratio of accruing loans past due 90 days or more to
net loans and leases 1		0.25	%		0.28	%		0.29	%		0.30	%		0.38	%

Nonaccrual loans and accruing loans past due 90 days or more	$	1,003,631		$	1,169,462		$	1,382,467		$	1,522,001		$	1,670,684
Ratio of nonaccrual loans and accruing loans past due
90 days or more to net loans and leases 1		2.69	%		3.17	%		3.74	%		4.14	%		4.52	%

Accruing loans past due 30 - 89 days, excluding
FDIC-supported loans	$	183,976		$	174,250		$	170,782		$	233,601		$	262,714
FDIC-supported loans past due 30 - 89 days		24,691			13,816			21,520			22,492			27,203

Restructured loans included in nonaccrual loans		295,825			308,159			324,077			344,024			367,135
Restructured loans on accrual		448,109			430,253			393,602			366,440			388,006

Classified loans, excluding FDIC-supported loans		2,056,472			2,361,574			2,675,741			3,045,509			3,408,312


1 Includes loans held for sale.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13

Allowance for Credit Losses
(Unaudited)

	Three Months Ended
(Amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2010
Allowance for Loan Losses
Balance at beginning of period	$	1,148,903		$	1,237,733		$	1,349,800		$	1,440,341		$	1,529,955
Add:
Provision for losses		(1,476	)		14,553			1,330			60,000			173,242
Adjustment for FDIC-supported loans		(2,655	)		(1,520	)		(162	)		(4,514	)		(6,046	)
Deduct:
Gross loan and lease charge-offs		(120,599	)		(129,146	)		(142,444	)		(167,968	)		(282,803	)
Recoveries		25,785			27,283			29,209			21,941			25,993
Net loan and lease charge-offs		(94,814	)		(101,863	)		(113,235	)		(146,027	)		(256,810	)
Balance at end of period	$	1,049,958		$	1,148,903		$	1,237,733		$	1,349,800		$	1,440,341

Ratio of allowance for loan losses to net loans and
leases, at period end		2.83	%		3.13	%		3.36	%		3.69	%		3.92	%

Ratio of allowance for loan losses to nonperforming
loans, at period end		115.40	%		107.59	%		97.17	%		95.56	%		94.22	%

Annualized ratio of net loan and lease charge-offs to
average loans		1.03	%		1.11	%		1.23	%		1.59	%		2.77	%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	98,062		$	100,264		$	102,168		$	111,708		$	97,899
Provision charged (credited) to earnings		4,360			(2,202	)		(1,904	)		(9,540	)		13,809
Balance at end of period	$	102,422		$	98,062		$	100,264		$	102,168		$	111,708

Total Allowance for Credit Losses
Allowance for loan losses	$	1,049,958		$	1,148,903		$	1,237,733		$	1,349,800		$	1,440,341
Reserve for unfunded lending commitments		102,422			98,062			100,264			102,168			111,708
Total allowance for credit losses	$	1,152,380		$	1,246,965		$	1,337,997		$	1,451,968		$	1,552,049

Ratio of total allowance for credit losses
to net loans and leases outstanding, at period end		3.10	%		3.40	%		3.63	%		3.97	%		4.22	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14

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

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

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

Commercial:
Commercial and industrial		127		176		186		213		224
Leasing		2		1		1		1		1
Owner occupied		239		268		314		317		342
Municipal		-		-		6		2		2
Total commercial		368		445		507		533		569

Commercial real estate:
Construction and land development		220		245		344		399		494
Term		156		189		233		270		264
Total commercial real estate		376		434		577		669		758

Consumer:
Home equity credit line		18		15		13		13		14
1-4 family residential		91		108		110		119		125
Construction and other consumer real estate		12		16		16		21		24
Bankcard and other revolving plans		-		-		-		-		1
Other		3		3		3		4		2
Total consumer		124		142		142		157		166
Total nonaccrual loans	$	886	$	1,039	$	1,243	$	1,380	$	1,493


Net Charge-Offs By Portfolio Type
(Unaudited)
	Three Months Ended
(In millions)	December 31,		September 30,		June 30,		March 31,		December 31,
		2011		2011		2011		2011		2010
Commercial:
Commercial and industrial	$	9	$	27	$	18	$	31	$	55
Leasing		-		-		-		-		3
Owner occupied		33		27		19		22		43
Municipal		-		-		-		-		-
Total commercial		42		54		37		53		101

Commercial real estate:
Construction and land development		13		17		37		48		81
Term		24		15		18		22		44
Total commercial real estate		37		32		55		70		125

Consumer:
Home equity credit line		6		4		6		6		9
1-4 family residential		7		5		11		8		14
Construction and other consumer real estate		1		4		2		4		3
Bankcard and other revolving plans		2		3		2		3		2
Other		-		-		-		2		3
Total consumer loans		16		16		21		23		31
Total net charge-offs	$	95	$	102	$	113	$	146	$	257

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)

	Three Months Ended						Three Months Ended						Three Months Ended
	December 31, 2011						September 30, 2011						June 30, 2011
(In thousands)	Average			Average			Average			Average			Average			Average
	balance			rate			balance			rate			balance			rate
ASSETS
Money market investments	$	6,574,588			0.26	%	$	5,519,190			0.25	%	$	4,792,704			0.27	%
Securities:
Held-to-maturity		794,030			5.60	%		821,510			5.39	%		821,768			5.51	%
Available-for-sale		3,496,842			2.47	%		3,951,546			2.21	%		4,031,836			2.27	%
Trading account		65,901			3.30	%		55,214			3.32	%		60,894			3.54	%
Total securities		4,356,773			3.06	%		4,828,270			2.76	%		4,914,498			2.83	%

Loans held for sale		161,134			3.45	%		118,054			4.08	%		144,048			4.25	%

Loans:
Net loans and leases excluding FDIC-supported loans 1		36,122,003			5.23	%		35,964,005			5.39	%		35,960,395			5.47	%
FDIC-supported loans		775,365			14.51	%		819,696			15.79	%		879,290			15.65	%
Total loans and leases		36,897,368			5.43	%		36,783,701			5.62	%		36,839,685			5.71	%
Total interest-earning assets		47,989,863			4.50	%		47,249,215			4.70	%		46,690,935			4.84	%
Cash and due from banks		1,071,368						1,036,218						1,036,501
Allowance for loan losses		(1,128,602	)					(1,210,111	)					(1,321,098	)
Goodwill		1,015,125						1,015,161						1,015,161
Core deposit and other intangibles		70,345						75,153						79,950
Other assets		3,332,441						3,407,914						3,490,867
Total assets	$	52,350,540					$	51,573,550					$	50,992,316

LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	6,858,799			0.23	%	$	6,637,565			0.27	%	$	6,548,676			0.29	%
Money market		14,769,654			0.36	%		14,838,406			0.43	%		14,827,231			0.48	%
Time		3,468,855			0.84	%		3,630,024			0.91	%		3,854,641			0.98	%
Foreign		1,634,203			0.43	%		1,494,995			0.55	%		1,490,636			0.58	%
Total interest-bearing deposits		26,731,511			0.40	%		26,600,990			0.46	%		26,721,184			0.51	%
Borrowed funds:
Securities sold, not yet purchased		30,704			4.11	%		31,077			4.25	%		37,989			4.16	%
Federal funds purchased and security
repurchase agreements		632,030			0.11	%		616,150			0.12	%		660,017			0.12	%
Other short-term borrowings		102,930			2.82	%		140,252			2.79	%		169,574			2.81	%
Long-term debt		1,921,251			10.26	%		1,893,251			10.73	%		1,897,887			22.50	%
Total borrowed funds		2,686,915			7.52	%		2,680,730			7.80	%		2,765,467			15.70	%
Total interest-bearing liabilities		29,418,426			1.05	%		29,281,720			1.14	%		29,486,651			1.94	%
Noninterest-bearing deposits		15,469,278						14,795,706						14,163,514
Other liabilities		515,595						529,343						499,072
Total liabilities		45,403,299						44,606,769						44,149,237
Shareholders’ equity:
Preferred equity		2,365,430						2,334,784						2,246,088
Common equity		4,583,748						4,633,555						4,598,336
Controlling interest shareholders’ equity		6,949,178						6,968,339						6,844,424
Noncontrolling interests		(1,937	)					(1,558	)					(1,345	)
Total shareholders’ equity		6,947,241						6,966,781						6,843,079
Total liabilities and shareholders’ equity	$	52,350,540					$	51,573,550					$	50,992,316

Spread on average interest-bearing funds					3.45	%					3.56	%					2.90	%

Net yield on interest-earning assets					3.86	%					3.99	%					3.62	%

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 16

GAAP to Non-GAAP Reconciliation
(Unaudited)
			Three Months Ended
			December 31, 2011							September 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)	$	44,420		$	0.24			$	65,165		$	0.35
		Addback for the after-tax impact of:
		Discount amortization on convertible subordinated debt		6,679			0.04				6,574			0.04
		Accelerated discount amortization on convertible subordinated debt		4,687			0.03				6,095			0.03
		Additional accretion of interest income on acquired loans, net of expense		(2,242	)		(0.01	)			(3,019	)		(0.02	)
		Net earnings excluding the effects of the discount amortization on convertible
		subordinated debt and additional accretion on acquired loans (non-GAAP)	$	53,544		$	0.30			$	74,815		$	0.40

			Three Months Ended
			December 31, 2011							September 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)	$	461,908			3.86	%	1	$	470,595			3.99	%
		Addback for the pretax impact of:
		Discount amortization on convertible subordinated debt		10,817			0.09	%			10,645			0.09	%
		Accelerated discount amortization on convertible subordinated debt		5,759			0.05	%			7,498			0.06	%
		Additional accretion of interest income on acquired loans		(17,003	)		(0.14	)%			(20,642	)		(0.17	)%
		Core net interest income/net interest margin (non-GAAP)	$	461,481			3.86	%		$	468,096			3.97	%

		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

January 23, 2012

Harris H. Simmons

Chairman/Chief Executive Officer