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 - April 23, 2012

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ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ Reports

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8-K - FORM 8-K - ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/	zion_8k.htm

***FOR IMMEDIATE RELEASE***

ZIONS BANCORPORATION REPORTS EARNINGS OF $0.14

PER DILUTED COMMON SHARE FOR FIRST QUARTER 2012

SALT LAKE CITY, April 23, 2012 – Zions Bancorporation (NASDAQ: ZION) (“Zions” or “the Company”) today reported first quarter net earnings applicable to common shareholders of $25.5 million or $0.14 per diluted common share, compared to $44.4 million or $0.24 per diluted share for the fourth quarter of 2011. Adjusted for the noncash effects of the discount amortization on conversion of subordinated debt and additional accretion (net of expense) on acquired loans ($15.0 million, $0.08 per share), and the accelerated amortization of discount on the $700 million redemption of Troubled Asset Relief Program (“TARP”) preferred stock ($19.6 million, $0.11 per share) in the first quarter, net earnings were $60.1 million or $0.33 per diluted share for the first quarter of 2012, compared to $53.5 million or $0.30 per diluted share for the fourth quarter of 2011.

First Quarter 2012 Highlights

Net charge-offs decreased 43% to $55 million, compared to a decrease of 7% to $95 million in the fourth quarter.

Nonaccrual loans decreased 4% to $872 million, compared to a decrease of 15% to $910 million in the fourth quarter.

The tangible common equity ratio increased to 6.89% at March 31, 2012, compared to 6.77% at December 31, 2011.

Net interest income decreased 4.2% to $442 million from $462 million in the fourth quarter. Core net interest income decreased 1.9% to $453 million from $461 million in the fourth quarter. The core net interest margin decreased 5 basis points to 3.81% from 3.86% in the fourth quarter.

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ZIONS BANCORPORATION

Press Release – Page 2

April 23, 2012

Loans and leases, excluding FDIC-supported loans, were $35.9 billion at March 31, 2012, or approximately $490 million lower than $36.4 billion at December 31, 2011; average loans and leases, excluding FDIC-supported loans, were essentially unchanged at $36.1 billion for the first quarter of 2012, compared to the fourth quarter of 2011.

“We are pleased with the continued improvement in underlying credit trends, as reflected in a significantly lower level of loan losses and other credit-related costs than in recent quarters – a trend we foresee continuing,” said Harris H. Simmons, chairman and chief executive officer. “We were also pleased to accomplish the redemption of $700 million of the U.S. Treasury’s TARP investment during the quarter,” continued Mr. Simmons. “At the same time, the combination of sluggish loan demand and very low interest rates continues to impede growth in our largest source of revenue, net interest income.”

Debt and Shareholders’ Equity

The Federal Reserve did not object to the capital actions contained in the Company’s Capital Plan submitted under the Federal Reserve’s 2012 Capital Plan Review. Pursuant to that plan, the Company repaid $700 million of TARP preferred stock on March 28, 2012, and currently expects to repay the remaining $700 million in the second half of the year.

On March 27, 2012, the Company issued $300 million of 4.5% senior notes due on March 27, 2017. The notes were sold at a price of 94.25% through an online modified Dutch auction administered by Zions Direct. Net proceeds to the Company, after commissions and fees, were $280.5 million.

Net of the interest cost on the previously mentioned debt, the $700 million redemption of TARP preferred stock in the first quarter is expected to benefit future net earnings applicable to common shareholders by approximately $0.19 per share on an annualized basis.

Effective March 15, 2012, approximately $29.8 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 29,404 shares of Series C and 370 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 $12.2 million ($9.9 million after-tax) in the first quarter of 2012, compared to $5.8 million ($4.7 million after-tax) in the fourth quarter of 2011.

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ZIONS BANCORPORATION

Press Release – Page 3

April 23, 2012

On April 19, 2012, the Company reported that holders of approximately $50.2 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 second quarter of 2012 due to the accelerated discount amortization on the converted debt by an estimated noncash amount of $16.2 million pretax ($13.2 million after-tax).

The estimated Tier 1 common to risk-weighted assets ratio was 9.70% at March 31, 2012, compared to 9.57% at December 31, 2011.

Asset Quality

Net loan and lease charge-offs decreased 43% to $55 million for the first quarter of 2012, compared to $95 million for the fourth quarter of 2011. Net charge-offs declined primarily in commercial real estate and owner occupied real estate-secured commercial loans.

Nonperforming lending-related assets declined approximately 3% to $1.0 billion at March 31, 2012 from $1.1 billion at December 31, 2011. Nonaccrual loans declined approximately 4% to $872 million at March 31, 2012 from $910 million at December 31, 2011. Additions to nonaccrual loans were $233 million during the first quarter of 2012, compared to $209 million during the fourth quarter of 2011. Nonaccrual loans that are current as to principal and interest were approximately 41% of the balance at March 31, 2012 and at December 31, 2011. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 2.79% at March 31, 2012, compared to 2.83% at December 31, 2011.

Classified loans remained approximately the same at $2.1 billion at March 31, 2012, compared to a decrease of 13% to $2.1 billion at December 31, 2011. Approximately 73% of classified loans were current as to principal and interest for the first quarter of 2012, compared to 72% for the fourth quarter of 2011. Additions to classified loans increased to $503 million during the first quarter of 2012, compared to $330 million during the fourth quarter of 2011.

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ZIONS BANCORPORATION

Press Release – Page 4

April 23, 2012

Additions would have been essentially unchanged compared to the prior quarter, except for a change in grading methodology in our National Real Estate Group. This change had the effect of downgrading to classified status approximately $175 million of performing loans during the quarter.

The provision for loan losses was $15.7 million for the first quarter of 2012, compared to a negative provision of $(1.5) million for the fourth quarter of 2011.

The allowance for credit losses was $1.1 billion, or 3.03% of loans and leases at March 31, 2012, compared to $1.2 billion, or 3.10% of loans and leases at December 31, 2011. The allowance for credit losses was 127% of nonaccrual loans at both March 31, 2012 and December 31, 2011.

Loans

Loans and leases, excluding FDIC-supported loans, were $35.9 billion at March 31, 2012, or approximately $490 million lower than $36.4 billion at December 31, 2011; substantially all of the decline occurred during the first two months of the first quarter. Average loans and leases, excluding FDIC-supported loans, were $36.1 billion for the first quarter of 2012, or essentially the same as the fourth quarter of 2011, which had increased $158 million compared to the previous quarter.

Deposits

Average total deposits for the first quarter of 2012 increased $170 million or 0.4% to $42.4 billion compared to $42.2 billion for the fourth quarter of 2011. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the first quarter of 2012, which were $15.7 billion compared to $15.5 billion for the fourth quarter of 2011. The ratio of loans to deposits was 84.9% at March 31, 2012, compared to 86.6% at December 31, 2011.

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ZIONS BANCORPORATION

Press Release – Page 5

April 23, 2012

Net Interest Income

Net interest income decreased 4.2% to $442 million for the first quarter of 2012, compared to $462 million for the fourth quarter of 2011. The decrease was primarily due to rate resets on older vintage longer-term loans and accelerated discount amortization on the larger amount of subordinated debt that converted to preferred stock compared to the previous quarter. Core net interest income, adjusted for discount amortization on convertible subordinated debt and accretion on acquired loans, was approximately $453 million for the first quarter of 2012, compared to $461 million for the fourth quarter of 2011. The net interest margin decreased 13 basis points to 3.73% in the first quarter of 2012, compared to 3.86% in the fourth quarter of 2011. The core net interest margin was 3.81% in the first quarter, compared to 3.86% in the fourth quarter. The decrease in the core net interest margin was primarily due to reduced loan yields.

Investment Securities

During the first quarter of 2012, the Company recognized credit-related other-than-temporary impairment (“OTTI”) on collateralized debt obligations (“CDOs”) of $10.2 million or $0.03 per diluted share, compared to $12.1 million or $0.04 per diluted share during the fourth quarter of 2011. Approximately a third of the OTTI this quarter resulted from prepayments of trust preferred securities by issuing banks in our CDO pools. This had the effect of reducing future cash flows to certain junior CDO tranches, causing OTTI, while providing more immediate cash to senior tranches, resulting in improved balances in accumulated other comprehensive income. The remaining portion of OTTI is attributable to credit deterioration at a small number of banks. There were fewer bank failures in the first quarter of 2012 than in prior quarters, and reperformance of deferring banks continues to be a favorable trend.

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ZIONS BANCORPORATION

Press Release – Page 6

April 23, 2012

The following table stratifies the CDOs into performing tranches without credit impairment and nonperforming tranches at March 31, 2012:

	March 31, 2012
									Net unrealized			% of
									losses			carrying
	No. of		Par		Amortized		Carrying		recognized			value
(Amounts in millions)	tranches		amount		cost		value		in OCI 1			to par

Performing CDOs
Predominantly bank CDOs		32	$	939	$	835	$	619	$	(216	)		66%
Insurance-only CDOs		21		451		446		332		(114	)		74%
Other CDOs		7		83		71		65		(6	)		78%
Total performing CDOs		60		1,473		1,352		1,016		(336	)		69%

Nonperforming CDOs 2
Deferring interest, but no credit impairment		3		72		72		18		(54	)		25%
Credit impairment prior to last 12 months		33		597		439		125		(314	)		21%
Credit impairment during last 12 months		21		419		260		60		(200	)		14%
Total nonperforming CDOs		57		1,088		771		203		(568	)		19%

Total CDOs		117	$	2,561	$	2,123	$	1,219	$	(904	)		48%

1 Other comprehensive income, amounts presented are pretax.
2 Defined as either deferring current interest (“PIKing”) or OTTI.

Noninterest Income

Noninterest income for the first quarter of 2012 was $107.0 million, compared to $98.3 million for the fourth quarter of 2011. The increase was primarily due to unrealized gains on nonmarketable equity securities. Other service charges, commissions and fees declined approximately $4.3 million primarily as a result of lower loan production and lower fee income on customer swaps.

Noninterest Expense

Noninterest expense for the first quarter of 2012 was $392.4 million compared to $425.0 million for the fourth quarter of 2011. Significant decreases from the fourth quarter related to credit costs, including the provision for unfunded lending commitments, other real estate expense, and credit-related expense. Salaries and employee benefits increased primarily due to increased payroll taxes.

Conference Call

Zions will host a conference call to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 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 66010698, 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 23, 2012, until midnight ET on Monday, April 30, 2012, by dialing 855-859-2056 (domestic and international) and entering the passcode 66010698. 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

April 23, 2012

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.

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ZIONS BANCORPORATION

Press Release – Page 8

April 23, 2012

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 9
FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended
(In thousands, except share, per share, and ratio data)	March 31,			December 31,			September 30,			June 30,			March 31,
	2012			2011			2011			2011			2011
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value per common share		25.25			25.02			24.78			24.88			24.93
Tangible common equity per common share		19.39			19.14			18.87			18.95			18.96

SELECTED RATIOS
Return on average assets		0.69	%		0.67	%		0.84	%		0.57	%		0.42	%
Return on average common equity		2.21	%		3.84	%		5.58	%		2.53	%		1.29	%
Net interest margin		3.73	%		3.86	%		3.99	%		3.62	%		3.76	%

Capital Ratios
Tangible common equity ratio		6.89	%		6.77	%		6.90	%		6.95	%		7.01	%
Tangible equity ratio		10.24	%		11.33	%		11.56	%		11.58	%		11.36	%
Average equity to average assets		13.31	%		13.27	%		13.51	%		13.42	%		13.25	%

Risk-Based Capital Ratios 1
Tier 1 common to risk-weighted assets		9.70	%		9.57	%		9.53	%		9.36	%		9.32	%
Tier 1 leverage		12.16	%		13.40	%		13.48	%		13.44	%		13.14	%
Tier 1 risk-based capital		14.81	%		16.13	%		16.10	%		15.87	%		15.46	%
Total risk-based capital		16.74	%		18.06	%		18.12	%		18.01	%		17.77	%

Taxable-equivalent net interest income	$	447,161		$	466,699		$	475,580		$	421,226		$	429,231

Weighted average common and common-
equivalent shares outstanding		182,963,828			182,823,190			182,857,702			182,728,185			181,997,687
Common shares outstanding		184,228,178			184,135,388			184,294,782			184,311,290			183,854,486

1 Ratios for March 31, 2012 are estimates.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
CONSOLIDATED BALANCE SHEETS
	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except share amounts)	2012			2011			2011			2011			2011
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	1,082,186		$	1,224,350		$	1,102,768		$	1,035,028		$	949,140
Money market investments:
Interest-bearing deposits		7,629,399			7,020,895			5,118,066			4,924,992			4,689,323
Federal funds sold and security resell agreements		52,634			102,159			165,106			123,132			67,197
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$728,479, $729,974, $715,608, $762,998, and $758,169)		797,149			807,804			791,569			829,702			820,636
Available-for-sale, at fair value		3,223,086			3,230,795			3,970,602			4,084,963			4,130,342
Trading account, at fair value		19,033			40,273			49,782			51,152			56,549
		4,039,268			4,078,872			4,811,953			4,965,817			5,007,527

Loans held for sale		184,579			201,590			159,300			158,943			195,055

Loans, net of unearned income and fees:
Loans and leases		35,903,475			36,393,782			35,924,054			35,969,702			35,632,972
FDIC-supported loans		687,126			750,870			800,454			853,875			912,822
		36,590,601			37,144,652			36,724,508			36,823,577			36,545,794
Less allowance for loan losses		1,010,059			1,049,958			1,148,903			1,237,733			1,349,800
Loans, net of allowance		35,580,542			36,094,694			35,575,605			35,585,844			35,195,994

Other noninterest-bearing investments		875,037			865,231			860,045			858,678			858,958
Premises and equipment, net		715,815			719,276			726,503			722,600			721,487
Goodwill		1,015,129			1,015,129			1,015,129			1,015,161			1,015,161
Core deposit and other intangibles		63,538			67,830			72,571			77,346			82,199
Other real estate owned		158,592			153,178			203,173			238,990			268,876
Other assets		1,499,588			1,605,905			1,721,101			1,654,883			1,756,791
	$	52,896,307		$	53,149,109		$	51,531,320		$	51,361,414		$	50,807,708

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	16,185,140		$	16,110,857		$	14,911,729		$	14,475,383		$	13,790,615
Interest-bearing:
Savings and NOW		7,406,910			7,159,101			6,711,002			6,555,306			6,494,013
Money market		14,813,495			14,616,740			14,576,527			14,948,065			14,874,507
Time		3,326,717			3,413,550			3,536,755			3,775,409			3,944,492
Foreign		1,366,826			1,575,361			1,627,135			1,437,067			1,488,807
		43,099,088			42,875,609			41,363,148			41,191,230			40,592,434

Securities sold, not yet purchased		47,404			44,486			30,070			42,709			101,406
Federal funds purchased and security repurchase agreements		486,808			608,098			630,901			630,058			727,764
Other short-term borrowings		19,839			70,273			125,290			147,945			182,167
Long-term debt		2,283,121			1,954,462			1,898,439			1,879,669			1,913,083
Reserve for unfunded lending commitments		98,718			102,422			98,062			100,264			102,168
Other liabilities		474,551			510,531			466,493			456,448			444,099
Total liabilities		46,509,529			46,165,881			44,612,403			44,448,323			44,063,121

Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares		1,737,633			2,377,560			2,354,523			2,329,370			2,162,399
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 184,228,178, 184,135,388,
184,294,782, 184,311,290, and 183,854,486 shares		4,162,522			4,163,242			4,160,697			4,158,369			4,178,369
Retained earnings		1,060,525			1,036,590			994,380			931,345			904,247
Accumulated other comprehensive income (loss)		(571,567	)		(592,084	)		(588,834	)		(504,491	)		(499,163	)
Controlling interest shareholders’ equity		6,389,113			6,985,308			6,920,766			6,914,593			6,745,852
Noncontrolling interests		(2,335	)		(2,080	)		(1,849	)		(1,502	)		(1,265	)
Total shareholders’ equity		6,386,778			6,983,228			6,918,917			6,913,091			6,744,587
	$	52,896,307		$	53,149,109		$	51,531,320		$	51,361,414		$	50,807,708

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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)	March 31,			December 31,			September 30,			June 30,			March 31,
	2012			2011			2011			2011			2011
Interest income:
Interest and fees on loans	$	486,615		$	504,243		$	520,133		$	523,741		$	518,157
Interest on money market investments		4,628			4,308			3,482			3,199			2,843
Interest on securities:
Held-to-maturity		8,959			9,106			8,937			9,009			8,664
Available-for-sale		23,158			21,268			21,382			22,179			22,276
Trading account		338			548			462			538			452
Total interest income		523,698			539,473			554,396			558,666			552,392

Interest expense:
Interest on deposits		23,413			26,645			31,093			34,257			36,484
Interest on short-term borrowings		779			1,221			1,501			1,783			2,180
Interest on long-term debt		57,207			49,699			51,207			106,454			89,872
Total interest expense		81,399			77,565			83,801			142,494			128,536

Net interest income		442,299			461,908			470,595			416,172			423,856
Provision for loan losses		15,664			(1,476	)		14,553			1,330			60,000
Net interest income after provision for loan losses		426,635			463,384			456,042			414,842			363,856

Noninterest income:
Service charges and fees on deposit accounts		43,532			42,873			44,154			42,878			44,530
Other service charges, commissions and fees		34,226			38,539			45,308			43,958			41,685
Trust and wealth management income		6,374			6,481			6,269			7,179			6,754
Capital markets and foreign exchange		5,734			8,106			7,729			8,358			7,214
Dividends and other investment income		9,480			7,805			9,356			17,239			8,028
Loan sales and servicing income		8,352			6,058			6,165			9,836			6,013
Fair value and nonhedge derivative income (loss)		(4,400	)		(4,677	)		(5,718	)		4,195			1,220
Equity securities gains (losses), net		9,145			1,961			5,289			(1,636	)		897
Fixed income securities gains (losses), net		720			1,288			13,035			(2,396	)		(59	)
Impairment losses on investment securities:
Impairment losses on investment securities		(18,273	)		(12,351	)		(55,530	)		(6,339	)		(3,105	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		8,064			265			42,196			1,181			-
Net impairment losses on investment securities		(10,209	)		(12,086	)		(13,334	)		(5,158	)		(3,105	)
Other		4,045			1,956			2,789			3,896			20,966
Total noninterest income		106,999			98,304			121,042			128,349			134,143

Noninterest expense:
Salaries and employee benefits		224,634			220,290			216,855			222,138			215,010
Occupancy, net		27,951			27,899			29,040			27,588			28,010
Furniture and equipment		26,792			27,036			26,852			26,153			25,662
Other real estate expense		7,810			14,936			20,564			17,903			24,167
Credit related expense		13,485			14,213			15,379			17,124			14,913
Provision for unfunded lending commitments		(3,704	)		4,360			(2,202	)		(1,904	)		(9,540	)
Legal and professional services		11,096			14,974			8,897			8,432			6,689
Advertising		5,807			7,780			6,511			5,962			6,911
FDIC premiums		10,919			12,012			12,573			15,232			24,101
Amortization of core deposit and other intangibles		4,291			4,741			4,773			4,855			5,701
Other		63,291			76,799			69,776			72,773			66,751
Total noninterest expense		392,372			425,040			409,018			416,256			408,375

Income before income taxes		141,262			136,648			168,066			126,935			89,624
Income taxes		51,859			47,877			59,348			54,325			37,033
Net income		89,403			88,771			108,718			72,610			52,591
Net income (loss) applicable to noncontrolling interests		(273	)		(248	)		(375	)		(265	)		(226	)
Net income applicable to controlling interest		89,676			89,019			109,093			72,875			52,817
Preferred stock dividends		(64,187	)		(44,599	)		(43,928	)		(43,837	)		(38,050	)
Net earnings applicable to common shareholders	$	25,489		$	44,420		$	65,165		$	29,038		$	14,767

Weighted average common shares outstanding during the period:
Basic shares		182,798			182,703			182,676			182,472			181,707
Diluted shares		182,964			182,823			182,858			182,728			181,998

Net earnings per common share:
Basic	$	0.14		$	0.24		$	0.35		$	0.16		$	0.08
Diluted		0.14			0.24			0.35			0.16			0.08

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12

Loan Balances By Portfolio Type
(Unaudited)

(In millions)	March 31,				December 31,				September 30,				June 30,				March 31,
		2012				2011				2011				2011				2011
Commercial:
Commercial and industrial		$	10,157			$	10,335			$	9,733			$	9,520			$	9,223
Leasing			394				380				366				365				366
Owner occupied			7,887				8,159				8,326				8,419				8,247
Municipal			441				441				440				448				435
Total commercial			18,879				19,315				18,865				18,752				18,271

Commercial real estate:
Construction and land development			2,100				2,265				2,467				2,748				2,945
Term			8,070				7,883				7,723				7,701				7,837
Total commercial real estate			10,170				10,148				10,190				10,449				10,782

Consumer:
Home equity credit line			2,167				2,187				2,161				2,143				2,123
1-4 family residential			3,875				3,921				3,891				3,807				3,625
Construction and other consumer real estate			316				306				303				308				324
Bankcard and other revolving plans			274				291				278				280				275
Other			223				226				236				231				233
Total consumer			6,855				6,931				6,869				6,769				6,580

FDIC-supported loans 1			687				751				801				854				913
Total loans		$	36,591			$	37,145			$	36,725			$	36,824			$	36,546

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)	March 31,				December 31,				September 30,				June 30,				March 31,
			2012				2011				2011				2011				2011
Balance sheet:

Change in assets from reestimation of cash flows –
increase (decrease):
FDIC-supported loans		$	13,171			$	17,003			$	20,642			$	21,467			$	19,257
FDIC indemnification asset (included in other assets)			(10,002	)			(13,126	)			(15,431	)			(14,975	)			(13,088	)

Balance at end of period:
FDIC-supported loans			687,126				750,870				800,454				853,875				912,822
FDIC indemnification asset (included in other assets)			106,477				120,358				135,299				150,557				172,170

	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
			2012				2011				2011				2011				2011
Statement of income:

Interest income:
Interest and fees on loans		$	13,171			$	17,003			$	20,642			$	21,467			$	19,257

Noninterest expense:
Other noninterest expense			10,002				13,126				15,431				14,975				13,088
Net increase in pretax income		$	3,169			$	3,877			$	5,211			$	6,492			$	6,169

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13

Nonperforming Lending-Related Assets
(Unaudited)

(Amounts in thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2012			2011			2011			2011			2011

Nonaccrual loans	$	849,543		$	885,608		$	1,038,803		$	1,243,304		$	1,379,521
Other real estate owned		129,676			128,874			170,023			195,005			225,005
Nonperforming lending-related assets, excluding
FDIC-supported assets		979,219			1,014,482			1,208,826			1,438,309			1,604,526

FDIC-supported nonaccrual loans		22,623			24,267			29,082			30,414			32,935
FDIC-supported other real estate owned		28,916			24,304			33,150			43,985			43,871
FDIC-supported nonperforming assets		51,539			48,571			62,232			74,399			76,806
Total nonperforming lending-related assets	$	1,030,758		$	1,063,053		$	1,271,058		$	1,512,708		$	1,681,332

Ratio of nonperforming lending-related assets to loans 1
and leases and other real estate owned		2.79	%		2.83	%		3.43	%		4.06	%		4.54	%

Accruing loans past due 90 days or more, excluding
FDIC-supported loans	$	35,014		$	19,145		$	15,863		$	19,195		$	14,830
FDIC-supported loans past due 90 days or more		76,945			74,611			85,714			89,554			94,715
Ratio of accruing loans past due 90 days or more to
loans 1 and leases		0.30	%		0.25	%		0.28	%		0.29	%		0.30	%

Nonaccrual loans and accruing loans past due 90 days or more	$	984,125		$	1,003,631		$	1,169,462		$	1,382,467		$	1,522,001
Ratio of nonaccrual loans and accruing loans past due
90 days or more to loans 1 and leases		2.68	%		2.69	%		3.17	%		3.74	%		4.14	%

Accruing loans past due 30 - 89 days, excluding
FDIC-supported loans	$	174,382		$	183,976		$	174,250		$	170,782		$	233,601
FDIC-supported loans past due 30 - 89 days		13,899			24,691			13,816			21,520			22,492

Restructured loans included in nonaccrual loans		276,669			295,825			308,159			324,077			344,024
Restructured loans on accrual		401,554			448,109			430,253			393,602			366,440

Classified loans, excluding FDIC-supported loans		2,076,220			2,056,472			2,361,574			2,675,741			3,045,509

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)	March 31,			December 31,			September 30,			June 30,			March 31,
	2012			2011			2011			2011			2011
Allowance for Loan Losses
Balance at beginning of period	$	1,049,958		$	1,148,903		$	1,237,733		$	1,349,800		$	1,440,341
Add:
Provision for losses		15,664			(1,476	)		14,553			1,330			60,000
Adjustment for FDIC-supported loans		(1,057	)		(2,655	)		(1,520	)		(162	)		(4,514	)
Deduct:
Gross loan and lease charge-offs		(80,014	)		(120,599	)		(129,146	)		(142,444	)		(167,968	)
Recoveries		25,508			25,785			27,283			29,209			21,941
Net loan and lease charge-offs		(54,506	)		(94,814	)		(101,863	)		(113,235	)		(146,027	)
Balance at end of period	$	1,010,059		$	1,049,958		$	1,148,903		$	1,237,733		$	1,349,800

Ratio of allowance for loan losses to loans and
leases, at period end		2.76	%		2.83	%		3.13	%		3.36	%		3.69	%

Ratio of allowance for loan losses to nonperforming
loans, at period end		115.81	%		115.40	%		107.59	%		97.17	%		95.56	%

Annualized ratio of net loan and lease charge-offs to
average loans		0.59	%		1.03	%		1.11	%		1.23	%		1.59	%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	102,422		$	98,062		$	100,264		$	102,168		$	111,708
Provision charged (credited) to earnings		(3,704	)		4,360			(2,202	)		(1,904	)		(9,540	)
Balance at end of period	$	98,718		$	102,422		$	98,062		$	100,264		$	102,168

Total Allowance for Credit Losses
Allowance for loan losses	$	1,010,059		$	1,049,958		$	1,148,903		$	1,237,733		$	1,349,800
Reserve for unfunded lending commitments		98,718			102,422			98,062			100,264			102,168
Total allowance for credit losses	$	1,108,777		$	1,152,380		$	1,246,965		$	1,337,997		$	1,451,968

Ratio of total allowance for credit losses
to loans and leases outstanding, at period end		3.03	%		3.10	%		3.40	%		3.63	%		3.97	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15

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

(In millions)	March 31,			December 31,			September 30,		June 30,		March 31,
		2012			2011		2011		2011		2011

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

Commercial:
Commercial and industrial		149			127		176		186		213
Leasing		1			2		1		1		1
Owner occupied		245			239		268		314		317
Municipal		-			-		-		6		2
Total commercial		395			368		445		507		533

Commercial real estate:
Construction and land development		148			220		245		344		399
Term		191			156		189		233		270
Total commercial real estate		339			376		434		577		669

Consumer:
Home equity credit line		17			18		15		13		13
1-4 family residential		87			91		108		110		119
Construction and other consumer real estate		8			12		16		16		21
Bankcard and other revolving plans		1			-		-		-		-
Other		3			3		3		3		4
Total consumer		116			124		142		142		157
Total nonaccrual loans	$	850		$	886	$	1,039	$	1,243	$	1,380


Net Charge-Offs By Portfolio Type
(Unaudited)
	Three Months Ended
(In millions)	March 31,			December 31,			September 30,		June 30,		March 31,
		2012			2011		2011		2011		2011
Commercial:
Commercial and industrial	$	17		$	9	$	27	$	18	$	31
Leasing		-			-		-		-		-
Owner occupied		8			33		27		19		22
Municipal		-			-		-		-		-
Total commercial		25			42		54		37		53

Commercial real estate:
Construction and land development		(2	)		13		17		37		48
Term		18			24		15		18		22
Total commercial real estate		16			37		32		55		70

Consumer:
Home equity credit line		4			6		4		6		6
1-4 family residential		7			7		5		11		8
Construction and other consumer real estate		1			1		4		2		4
Bankcard and other revolving plans		2			2		3		2		3
Other		-			-		-		-		2
Total consumer loans		14			16		16		21		23
Total net charge-offs	$	55		$	95	$	102	$	113	$	146

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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
	March 31, 2012						December 31, 2011						September 30, 2011
(In thousands)	Average			Average			Average			Average			Average			Average
	balance			rate			balance			rate			balance			rate
ASSETS
Money market investments	$	7,282,245			0.26	%	$	6,574,588			0.26	%	$	5,519,190			0.25	%
Securities:
Held-to-maturity		799,741			5.53	%		794,030			5.60	%		821,510			5.39	%
Available-for-sale		3,093,827			3.08	%		3,496,842			2.47	%		3,951,546			2.21	%
Trading account		41,189			3.30	%		65,901			3.30	%		55,214			3.32	%
Total securities		3,934,757			3.58	%		4,356,773			3.06	%		4,828,270			2.76	%

Loans held for sale		174,902			3.45	%		161,134			3.45	%		118,054			4.08	%

Loans 1:
Loans and leases		36,078,917			5.17	%		36,122,003			5.23	%		35,964,005			5.39	%
FDIC-supported loans		712,877			13.29	%		775,365			14.51	%		819,696			15.79	%
Total loans		36,791,794			5.33	%		36,897,368			5.43	%		36,783,701			5.62	%
Total interest-earning assets		48,183,698			4.41	%		47,989,863			4.50	%		47,249,215			4.70	%
Cash and due from banks		1,122,979						1,071,368						1,036,218
Allowance for loan losses		(1,046,709	)					(1,128,602	)					(1,210,111	)
Goodwill		1,015,129						1,015,125						1,015,161
Core deposit and other intangibles		65,837						70,345						75,153
Other assets		3,239,161						3,332,441						3,407,914
Total assets	$	52,580,095					$	52,350,540					$	51,573,550

LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	7,200,170			0.20	%	$	6,858,799			0.23	%	$	6,637,565			0.27	%
Money market		14,701,771			0.32	%		14,769,654			0.36	%		14,838,406			0.43	%
Time		3,369,323			0.79	%		3,468,855			0.84	%		3,630,024			0.91	%
Foreign		1,408,409			0.40	%		1,634,203			0.43	%		1,494,995			0.55	%
Total interest-bearing deposits		26,679,673			0.35	%		26,731,511			0.40	%		26,600,990			0.46	%
Borrowed funds:
Securities sold, not yet purchased		22,758			3.38	%		30,704			4.11	%		31,077			4.25	%
Federal funds purchased and security
repurchase agreements		528,662			0.12	%		632,030			0.11	%		616,150			0.12	%
Other short-term borrowings		48,394			3.61	%		102,930			2.82	%		140,252			2.79	%
Long-term debt		1,991,776			11.55	%		1,921,251			10.26	%		1,893,251			10.73	%
Total borrowed funds		2,591,590			9.00	%		2,686,915			7.52	%		2,680,730			7.80	%
Total interest-bearing liabilities		29,271,263			1.12	%		29,418,426			1.05	%		29,281,720			1.14	%
Noninterest-bearing deposits		15,691,499						15,469,278						14,795,706
Other liabilities		619,231						515,595						529,343
Total liabilities		45,581,993						45,403,299						44,606,769
Shareholders’ equity:
Preferred equity		2,355,549						2,365,430						2,334,784
Common equity		4,644,722						4,583,748						4,633,555
Controlling interest shareholders’ equity		7,000,271						6,949,178						6,968,339
Noncontrolling interests		(2,169	)					(1,937	)					(1,558	)
Total shareholders’ equity		6,998,102						6,947,241						6,966,781
Total liabilities and shareholders’ equity	$	52,580,095					$	52,350,540					$	51,573,550

Spread on average interest-bearing funds					3.29	%					3.45	%					3.56	%

Net yield on interest-earning assets					3.73	%					3.86	%					3.99	%

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
			March 31, 2012							December 31, 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)	$	25,489		$	0.14			$	44,420		$	0.24
		Addback for the after-tax impact of:
		Discount amortization on convertible subordinated debt		6,905			0.04				6,679			0.04
		Accelerated discount amortization on convertible subordinated debt		9,920			0.05				4,687			0.03
		Additional accretion of interest income on acquired loans, net of expense		(1,830	)		(0.01	)			(2,242	)		(0.01	)
		Net earnings excluding the effects of the discount amortization on convertible
		subordinated debt and additional accretion on acquired loans (non-GAAP)	$	40,484		$	0.22			$	53,544		$	0.30

			Three Months Ended
			March 31, 2012							December 31, 2011
	2.	Core Net Interest Income (NII)/Net Interest Margin (NIM)	NII			NIM				NII			NIM

		Net interest income/net interest margin as reported (GAAP)	$	442,299			3.73	%	1	$	461,908			3.86	%
		Addback for the pretax impact of:
		Discount amortization on convertible subordinated debt		11,182			0.09	%			10,817			0.09	%
		Accelerated discount amortization on convertible subordinated debt		12,204			0.10	%			5,759			0.05	%
		Additional accretion of interest income on acquired loans		(13,171	)		(0.11	)%			(17,003	)		(0.14	)%
		Core net interest income/net interest margin (non-GAAP)	$	452,514			3.81	%		$	461,481			3.86	%

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

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

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

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

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

April 23, 2012

Harris H. Simmons

Chairman/Chief Executive Officer