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

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8-K - 8-K - ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/	a4q20128-kcoverpage.htm

EXHIBIT 99.1

***FOR IMMEDIATE RELEASE***



For: ZIONS BANCORPORATION						Contact: James Abbott
One South Main, 15th Floor						Tel: (801) 524-4787
Salt Lake City, Utah						January 28, 2013
Harris H. Simmons
Chairman/Chief Executive Officer

ZIONS BANCORPORATION REPORTS EARNINGS OF $0.19

PER DILUTED COMMON SHARE FOR FOURTH QUARTER 2012

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

Fourth Quarter 2012 Highlights


•	Loans and leases, excluding FDIC-supported loans, increased $463 million to $37.1 billion at December 31, 2012. Average loans and leases, excluding FDIC-supported loans, increased only $100 million, as most of the loan growth occurred near quarter-end.


•	Net loan and lease charge-offs declined 51% and nonperforming lending-related assets declined 11% compared to the third quarter. The continued improvement in credit quality resulted in a fourth quarter negative provision for loan losses of $10 million.


•	The OTTI on CDO securities was primarily attributable to significant changes in modeling assumptions related to prepayment speeds and PDs on certain deferring bank holding company trust preferred securities.


•	Tangible common equity per common share improved $0.71 to $20.95 from $20.24 in the third quarter.

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ZIONS BANCORPORATION

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January 28, 2013

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

Reclassifications in Statement of Income

For the fourth quarter of 2012, approximately $9 million of credit card interchange fees were reclassified from interest and fees on loans to other service charges, commissions and fees. In addition, $3 million of income on factored receivables was reclassified from other service charges, commissions and fees to interest and fees on loans. These reclassifications reduced net interest income by approximately $6 million and the net interest margin by 5 basis points for the fourth quarter of 2012. At December 31, 2012, the reclassifications related to factored receivables also increased loan and lease balances by approximately $96 million and the allowance for loan losses by $2 million, with a corresponding reduction in other assets of $94 million. The changes were made primarily to conform with prevailing reporting practices in the banking industry. Current and prior period amounts for all periods presented throughout this press release have been adjusted where appropriate so that amounts are on a comparable basis. There was no change in net earnings for any prior period presented.

Loans

Loans and leases, excluding FDIC-supported loans, increased $463 million on a net basis to $37.1 billion at December 31, 2012, compared to $36.7 billion at September 30, 2012. The increases were predominantly in commercial and industrial and 1-4 family residential loans and were widespread geographically. Decreases of $174 million in commercial owner occupied, construction and land development, and term commercial real estate loans partially offset increases in other loan categories. Most of this increase occurred during the month of December. Average loans and leases, excluding FDIC-supported loans, increased $100 million to $36.7 billion during the fourth quarter of 2012, compared to $36.6 billion during the third quarter of 2012.

Deposits

Average total deposits for the fourth quarter of 2012 increased $1.4 billion, or 3.3%, to $44.9 billion, compared to $43.5 billion for the third quarter of 2012. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits, primarily in nonpersonal accounts, for the fourth quarter of 2012, which were $17.9 billion compared to $16.8 billion for the third quarter of 2012. The ratio of average loans to average deposits was 83% at December 31, 2012, compared to 86% at September 30, 2012.

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ZIONS BANCORPORATION

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January 28, 2013

Debt and Shareholders’ Equity

The tangible common equity ratio was 7.09% at December 31, 2012, compared to 7.17% at September 30, 2012. The decline was primarily due to a 5% increase in total tangible assets, driven primarily by a 24% increase in cash-related balances that resulted from increased deposits late in the year. The estimated common equity tier 1 capital ratio was 9.78% at December 31, 2012, compared to 9.86% at September 30, 2012.

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

Net Interest Income

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

Noninterest Income

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

CDO Investment Securities

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

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ZIONS BANCORPORATION

Press Release – Page 4

January 28, 2013

$10.2 million or $0.03 per diluted share in gains during the quarter, compared to $3.0 million or $0.01 per diluted share in the third quarter, from cash principal payments on CDOs previously written down.

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



	December 31, 2012
								Net unrealized losses recognized in AOCI ¹			Weighted average discount rate ²			% of carrying value to par
(Amounts in millions)	No. of tranches	Par amount		Amortized cost		Carrying value		Net unrealized losses recognized in AOCI ¹			Weighted average discount rate ²		December 31, 2012			September 30, 2012			Change
Performing CDOs
Predominantly bank CDOs	28	$	811	$	727	$	538	$	(189	)	7.8	%		66	%		72	%	(6	)%
Insurance-only CDOs	22	454		449		327		(122		)	8.6	%		72	%		72	%	—	%
Other CDOs	6	54		43		38		(5		)	9.4	%		70	%		78	%	(8	)%
Total performing CDOs	56	1,319		1,219		903		(316		)	8.1	%		68	%		72	%	(4	)%

Nonperforming CDOs ³
CDOs credit impaired prior to last 12 months	18	369		251		109		(142		)	10.7	%		30	%		22	%	8	%
CDOs credit impaired during last 12 months	39	732		441		181		(260		)	9.6	%		25	%		14	%	11	%
Total nonperforming CDOs	57	1,101		692		290		(402		)	10.0	%		26	%		19	%	7	%

Total CDOs	113	$	2,420	$	1,911	$	1,193	$	(718	)	9.0	%		49	%		49	%	—	%

¹ Amounts presented are pretax.

² Margin over related LIBOR index.

³ Defined as either deferring current interest (“PIKing”) or OTTI; the majority are predominantly bank CDOs.

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

Noninterest Expense

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

Asset Quality

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

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ZIONS BANCORPORATION

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January 28, 2013

Recoveries increased to $36 million for the fourth quarter of 2012, compared to $20 million for the third quarter of 2012. Net charge-offs declined primarily in commercial- and commercial real estate-related loans.

Nonperforming lending-related assets declined 11% to $746 million at December 31, 2012 from $838 million at September 30, 2012. Nonaccrual loans declined 10% to $647 million at December 31, 2012 (including $6 million resulting from the new OCC guidance) from $719 million at September 30, 2012. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 1.96% at December 31, 2012, compared to 2.23% at September 30, 2012.

Classified loans, excluding FDIC-supported loans, decreased approximately 2% to $1.77 billion at December 31, 2012, compared to $1.81 billion at September 30, 2012. Approximately 79% of classified loans were current as to principal and interest for the fourth quarter of 2012, compared to 76% for the third quarter of 2012.

The provision (credit) for loan losses was $(10.4) million for the fourth quarter of 2012, compared to $(1.9) million for the third quarter of 2012. The allowance for credit losses was $1.0 billion, or 2.66% of loans and leases at December 31, 2012, essentially unchanged from $1.0 billion, or 2.77% of loans and leases at September 30, 2012.

Conference Call

Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 28, 2013). Media representatives, analysts and the public are invited to listen to this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 83645774, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. ET on Monday, January 28, 2013, until midnight ET on Monday, February 5, 2013, by dialing 404-537-3406 (domestic and international) and entering the same passcode. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation

Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select Western markets. Zions operates its banking businesses under local management teams and community identities through approximately 480 offices in 10 Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

Statements in this press release that are based on other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation

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January 28, 2013

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

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January 28, 2013

Financial Highlights

(Unaudited)



	Three Months Ended
(In thousands, except share, per share, and ratio data)	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value per common share ¹	26.73			26.05			25.48			25.25			25.02
Tangible common equity per common share ¹	20.95			20.24			19.65			19.39			19.14

SELECTED RATIOS
Return on average assets	0.43		%	0.82		%	0.70		%	0.69		%	0.67		%
Return on average common equity	2.91		%	5.21		%	4.71		%	2.21		%	3.84		%
Tangible return on average tangible common equity	4.07		%	7.02		%	6.41		%	3.18		%	5.38		%
Net interest margin	3.47		%	3.58		%	3.56		%	3.69		%	3.81		%

Capital Ratios
Tangible common equity ratio ¹	7.09		%	7.17		%	6.91		%	6.89		%	6.77		%
Tangible equity ratio ¹	9.15		%	9.32		%	10.35		%	10.24		%	11.33		%
Average equity to average assets	11.03		%	12.22		%	12.37		%	13.31		%	13.27		%

Risk-Based Capital Ratios ^1,2
Common equity tier 1 capital	9.78		%	9.86		%	9.78		%	9.71		%	9.57		%
Tier 1 leverage	10.95		%	11.05		%	12.31		%	12.17		%	13.40		%
Tier 1 risk-based capital	13.35		%	13.49		%	15.03		%	14.83		%	16.13		%
Total risk-based capital	15.02		%	15.25		%	16.89		%	16.76		%	18.06		%

Taxable-equivalent net interest income	$	434,252		$	442,595		$	430,967		$	442,340		$	462,457

Weighted average common and common-equivalent shares outstanding	183,456,109			183,382,650			183,136,631			182,963,828			182,823,190
Common shares outstanding ¹	184,199,198			184,156,402			184,117,522			184,228,178			184,135,388

¹At period end.

² Ratios for December 31, 2012 are estimates.

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ZIONS BANCORPORATION

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January 28, 2013

CONSOLIDATED BALANCE SHEETS



(In thousands, except share amounts)	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	1,841,907		$	1,060,918		$	1,124,673		$	1,082,186		$	1,224,350
Money market investments:
Interest-bearing deposits	5,978,978			5,519,463			7,887,175			7,629,399			7,020,895
Federal funds sold and security resell agreements	2,775,354			1,960,294			83,529			52,634			102,159
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value $674,741, $655,768, $715,710, $728,479, and $729,974)	756,909			740,738			773,016			797,149			807,804
Available-for-sale, at fair value	3,091,310			3,127,192			3,167,590			3,223,086			3,230,795
Trading account, at fair value	28,290			13,963			20,539			19,033			40,273
	3,876,509			3,881,893			3,961,145			4,039,268			4,078,872

Loans held for sale	251,651			220,240			139,245			184,579			201,590

Loans, net of unearned income and fees:
Loans and leases	37,137,006			36,674,288			36,319,596			35,998,928			36,507,039
FDIC-supported loans	528,241			588,566			642,246			687,126			750,870
	37,665,247			37,262,854			36,961,842			36,686,054			37,257,909
Less allowance for loan losses	896,087			927,068			973,443			1,011,786			1,051,685
Loans, net of allowance	36,769,160			36,335,786			35,988,399			35,674,268			36,206,224

Other noninterest-bearing investments	855,462			874,903			867,882			875,037			865,231
Premises and equipment, net	708,882			709,188			714,913			715,815			719,276
Goodwill	1,014,129			1,015,129			1,015,129			1,015,129			1,015,129
Core deposit and other intangibles	50,818			55,034			59,277			63,538			67,830
Other real estate owned	98,151			118,190			144,816			158,592			153,178
Other assets	1,290,917			1,335,963			1,420,829			1,405,862			1,494,375
	$	55,511,918		$	53,087,001		$	53,407,012		$	52,896,307		$	53,149,109

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	18,469,458		$	17,295,911		$	16,498,248		$	16,185,140		$	16,110,857
Interest-bearing:
Savings and money market	22,896,624			21,970,062			21,945,230			22,220,405			21,775,841
Time	2,962,931			3,107,815			3,211,942			3,326,717			3,413,550
Foreign	1,804,060			1,398,749			1,504,827			1,366,826			1,575,361
	46,133,073			43,772,537			43,160,247			43,099,088			42,875,609

Securities sold, not yet purchased	26,735			21,708			104,882			47,404			44,486
Federal funds purchased and security repurchase agreements	320,478			451,214			759,591			486,808			608,098
Other short-term borrowings	5,409			6,608			7,621			19,839			70,273
Long-term debt	2,337,113			2,326,659			2,274,571			2,283,121			1,954,462
Reserve for unfunded lending commitments	106,809			105,850			103,586			98,718			102,422
Other liabilities	533,660			484,170			507,151			474,551			510,531
Total liabilities	49,463,277			47,168,746			46,917,649			46,509,529			46,165,881

Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares	1,128,302			1,123,377			1,800,473			1,737,633			2,377,560
Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 184,199,198, 184,156,402, 184,117,522, 184,228,178, and 184,135,388 shares	4,166,109			4,162,001			4,157,525			4,162,522			4,163,242
Retained earnings	1,203,815			1,170,477			1,110,120			1,060,525			1,036,590
Accumulated other comprehensive income (loss)	(446,157		)	(534,738		)	(576,147		)	(571,567		)	(592,084		)
Controlling interest shareholders’ equity	6,052,069			5,921,117			6,491,971			6,389,113			6,985,308
Noncontrolling interests	(3,428		)	(2,862		)	(2,608		)	(2,335		)	(2,080		)
Total shareholders’ equity	6,048,641			5,918,255			6,489,363			6,386,778			6,983,228
	$	55,511,918		$	53,087,001		$	53,407,012		$	52,896,307		$	53,149,109

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ZIONS BANCORPORATION

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January 28, 2013

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)



	Three Months Ended
(In thousands, except per share amounts)	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Interest income:
Interest and fees on loans	$	462,002		$	473,162		$	472,926		$	481,794		$	500,001
Interest on money market investments	6,004			5,349			5,099			4,628			4,308
Interest on securities:
Held-to-maturity	8,130			8,337			9,325			8,959			9,106
Available-for-sale	21,971			22,042			25,090			23,158			21,268
Trading account	150			110			148			338			548
Total interest income	498,257			509,000			512,588			518,877			535,231

Interest expense:
Interest on deposits	16,861			19,049			20,823			23,413			26,645
Interest on short-term borrowings	178			193			256			779			1,221
Interest on long-term debt	51,261			51,597			65,165			57,207			49,699
Total interest expense	68,300			70,839			86,244			81,399			77,565

Net interest income	429,957			438,161			426,344			437,478			457,666
Provision for loan losses	(10,401		)	(1,889		)	10,853			15,664			(1,426		)
Net interest income after provision for loan losses	440,358			440,050			415,491			421,814			459,092

Noninterest income:
Service charges and fees on deposit accounts	44,492			44,951			43,426			43,532			42,873
Other service charges, commissions and fees	46,497			44,679			44,197			39,047			42,781
Trust and wealth management income	7,450			6,521			8,057			6,374			6,481
Capital markets and foreign exchange	7,708			6,026			7,342			5,734			8,106
Dividends and other investment income	13,117			11,686			21,542			9,480			7,805
Loan sales and servicing income	10,595			10,695			10,287			8,352			6,058
Fair value and nonhedge derivative loss	(4,778		)	(5,820		)	(6,784		)	(4,400		)	(4,677		)
Equity securities gains (losses), net	(682		)	2,683			107			9,145			1,961
Fixed income securities gains, net	10,259			3,046			5,519			720			1,288
Impairment losses on investment securities:
Impairment losses on investment securities	(120,082		)	(3,876		)	(24,026		)	(18,273		)	(12,351		)
Noncredit-related losses on securities not expected to be sold (recognized in other comprehensive income)	36,274			1,140			16,718			8,064			265
Net impairment losses on investment securities	(83,808		)	(2,736		)	(7,308		)	(10,209		)	(12,086		)
Other	3,309			3,495			2,280			4,045			1,956
Total noninterest income	54,159			125,226			128,665			111,820			102,546

Noninterest expense:
Salaries and employee benefits	220,039			220,223			220,765			224,634			220,290
Occupancy, net	28,226			28,601			28,169			27,951			27,899
Furniture and equipment	27,774			27,122			27,302			26,792			27,036
Other real estate expense	5,266			207			6,440			7,810			14,936
Credit related expense	11,302			13,316			12,415			13,485			14,213
Provision for unfunded lending commitments	959			2,264			4,868			(3,704		)	4,360
Legal and professional services	15,717			12,749			12,947			11,096			14,974
Advertising	5,969			7,326			6,618			5,807			7,780
FDIC premiums	10,760			11,278			10,444			10,919			12,012
Amortization of core deposit and other intangibles	4,216			4,241			4,262			4,291			4,741
Other	76,786			67,648			67,426			63,291			76,749
Total noninterest expense	407,014			394,975			401,656			392,372			424,990

Income before income taxes	87,503			170,301			142,500			141,262			136,648
Income taxes	29,817			60,704			51,036			51,859			47,877
Net income	57,686			109,597			91,464			89,403			88,771
Net loss applicable to noncontrolling interests	(566		)	(254		)	(273		)	(273		)	(248		)
Net income applicable to controlling interest	58,252			109,851			91,737			89,676			89,019
Preferred stock dividends	(22,647		)	(47,529		)	(36,522		)	(64,187		)	(44,599		)
Net earnings applicable to common shareholders	$	35,605		$	62,322		$	55,215		$	25,489		$	44,420

Weighted average common shares outstanding during the period:
Basic shares	183,300			183,237			182,985			182,798			182,703
Diluted shares	183,456			183,383			183,137			182,964			182,823

Net earnings per common share:
Basic	$	0.19		$	0.34		$	0.30		$	0.14		$	0.24
Diluted	0.19			0.34			0.30			0.14			0.24

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ZIONS BANCORPORATION

Press Release – Page 10

January 28, 2013

Loan Balances by Portfolio Type

(Unaudited)



(In millions)	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Commercial:
Commercial and industrial		$	11,257		$	10,840		$	10,471		$	10,253		$	10,448
Leasing		423			405			406			394			380
Owner occupied		7,589			7,669			7,811			7,886			8,159
Municipal		494			469			477			441			441
Total commercial		19,763			19,383			19,165			18,974			19,428

Commercial real estate:
Construction and land development		1,939			1,956			2,099			2,100			2,265
Term		8,063			8,140			8,012			8,070			7,883
Total commercial real estate		10,002			10,096			10,111			10,170			10,148

Consumer:
Home equity credit line		2,178			2,175			2,181			2,167			2,187
1-4 family residential		4,350			4,181			4,019			3,875			3,921
Construction and other consumer real estate		321			320			328			316			306
Bankcard and other revolving plans		307			295			284			274			291
Other		216			224			232			223			226
Total consumer		7,372			7,195			7,044			6,855			6,931

FDIC-supported loans ¹		528			589			642			687			751
Total loans		$	37,665		$	37,263		$	36,962		$	36,686		$	37,258

¹ FDIC-supported loans represent loans acquired from the FDIC subject to loss sharing agreements.

FDIC-Supported Loans – Effect of Higher Accretion

and Impact on FDIC Indemnification Asset

(Unaudited)



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

Change in assets from reestimation of cash flows – increase (decrease):
FDIC-supported loans		$	12,970			$	17,594			$	14,761			$	13,171			$	17,003
FDIC indemnification asset (included in other assets)		(10,610		)		(14,401		)		(11,233		)		(10,002		)		(13,126		)

Balance at end of period:
FDIC-supported loans		528,241				588,566				642,246				687,126				750,870
FDIC indemnification asset (included in other assets)		90,074				100,004				117,167				123,862				137,719

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

Interest income:
Interest and fees on loans		$	12,970			$	17,594			$	14,761			$	13,171			$	17,003

Noninterest expense:
Other noninterest expense		10,610				14,401				11,233				10,002				13,126
Net increase in pretax income		$	2,360			$	3,193			$	3,528			$	3,169			$	3,877

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ZIONS BANCORPORATION

Press Release – Page 11

January 28, 2013

Nonperforming Lending-Related Assets

(Unaudited)



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

Nonaccrual loans	$	630,810		$	699,952		$	771,510		$	849,543		$	885,608
Other real estate owned	90,269			106,356			125,142			129,676			128,874
Nonperforming lending-related assets, excluding FDIC-supported assets	721,079			806,308			896,652			979,219			1,014,482

FDIC-supported nonaccrual loans	16,661			19,454			21,980			22,623			24,267
FDIC-supported other real estate owned	7,882			11,834			19,674			28,916			24,304
FDIC-supported nonperforming assets	24,543			31,288			41,654			51,539			48,571
Total nonperforming lending-related assets	$	745,622		$	837,596		$	938,306		$	1,030,758		$	1,063,053

Ratio of nonperforming lending-related assets to loans ¹ and leases and other real estate owned	1.96		%	2.23		%	2.52		%	2.78		%	2.83		%

Accruing loans past due 90 days or more, excluding FDIC-supported loans	$	9,730		$	14,508		$	29,460		$	38,172		$	19,145
Accruing FDIC-supported loans past due 90 days or more	52,314			60,913			70,453			76,945			74,611
Ratio of accruing loans past due 90 days or more to loans ¹ and leases	0.16		%	0.20		%	0.27		%	0.31		%	0.25		%

Nonaccrual loans and accruing loans past due 90 days or more	$	709,515		$	794,827		$	893,403		$	987,283		$	1,003,631
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans ¹ and leases	1.87		%	2.12		%	2.41		%	2.68		%	2.68		%

Accruing loans past due 30 - 89 days, excluding FDIC-supported loans	$	185,422		$	143,539		$	142,501		$	171,224		$	183,976
Accruing FDIC-supported loans past due 30 - 89 days	11,924			15,462			15,519			13,899			24,691

Restructured loans included in nonaccrual loans	215,476			207,089			227,568			276,669			295,825
Restructured loans on accrual	407,026			421,055			393,360			401,554			448,109

Classified loans, excluding FDIC-supported loans	1,767,460			1,810,099			1,880,932			2,076,220			2,056,472

¹ Includes loans held for sale.

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ZIONS BANCORPORATION

Press Release – Page 12

January 28, 2013

Allowance for Credit Losses

(Unaudited)



	Three Months Ended
(Amounts in thousands)	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Allowance for Loan Losses
Balance at beginning of period	$	927,068		$	973,443		$	1,011,786		$	1,051,685		$	1,150,580
Add:
Provision for losses	(10,401		)	(1,889		)	10,853			15,664			(1,426		)
Adjustment for FDIC-supported loans	(1,721		)	(5,908		)	(5,856		)	(1,057		)	(2,655		)
Deduct:
Gross loan and lease charge-offs	(54,709		)	(58,781		)	(73,685		)	(80,014		)	(120,599		)
Recoveries	35,850			20,203			30,345			25,508			25,785
Net loan and lease charge-offs	(18,859		)	(38,578		)	(43,340		)	(54,506		)	(94,814		)
Balance at end of period	$	896,087		$	927,068		$	973,443		$	1,011,786		$	1,051,685

Ratio of allowance for loan losses to loans and leases, at period end	2.38		%	2.49		%	2.63		%	2.76		%	2.82		%

Ratio of allowance for loan losses to nonperforming loans, at period end	138.40		%	128.87		%	122.68		%	116.01		%	115.59		%

Annualized ratio of net loan and lease charge-offs to average loans	0.20		%	0.41		%	0.47		%	0.59		%	1.02		%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	105,850		$	103,586		$	98,718		$	102,422		$	98,062
Provision charged (credited) to earnings	959			2,264			4,868			(3,704		)	4,360
Balance at end of period	$	106,809		$	105,850		$	103,586		$	98,718		$	102,422

Total Allowance for Credit Losses
Allowance for loan losses	$	896,087		$	927,068		$	973,443		$	1,011,786		$	1,051,685
Reserve for unfunded lending commitments	106,809			105,850			103,586			98,718			102,422
Total allowance for credit losses	$	1,002,896		$	1,032,918		$	1,077,029		$	1,110,504		$	1,154,107

Ratio of total allowance for credit losses to loans and leases outstanding, at period end	2.66		%	2.77		%	2.91		%	3.03		%	3.10		%

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ZIONS BANCORPORATION

Press Release – Page 13

January 28, 2013

Nonaccrual Loans by Portfolio Type

(Excluding FDIC-Supported Loans)

(Unaudited)



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

Loans held for sale		$	—		$	—		$	—		$	—		$	18

Commercial:
Commercial and industrial		91			103			133			149			127
Leasing		1			1			1			1			2
Owner occupied		206			223			240			245			239
Municipal		9			6			—			—			—
Total commercial		307			333			374			395			368

Commercial real estate:
Construction and land development		108			125			115			148			220
Term		125			155			182			191			156
Total commercial real estate		233			280			297			339			376

Consumer:
Home equity credit line		14			12			14			17			18
1-4 family residential		70			66			76			87			91
Construction and other consumer real estate		5			6			8			8			12
Bankcard and other revolving plans		1			1			1			1			—
Other		1			2			2			3			3
Total consumer		91			87			101			116			124
Total nonaccrual loans		$	631		$	700		$	772		$	850		$	886

Net Charge-Offs by Portfolio Type

(Unaudited)



(In millions)	December 31, 2012				September 30, 2012			June 30, 2012				March 31, 2012				December 31, 2011
Commercial:
Commercial and industrial		$	(1	)		$	3		$	9			$	17			$	9
Leasing		2				—			—				—				—
Owner occupied		7				10			10				8				33
Municipal		—				—			—				—				—
Total commercial		8				13			19				25				42

Commercial real estate:
Construction and land development		(7		)		—			(2		)		(2		)		13
Term		7				16			13				18				24
Total commercial real estate		—				16			11				16				37

Consumer:
Home equity credit line		6				2			6				4				6
1-4 family residential		4				4			5				7				7
Construction and other consumer real estate		—				1			—				1				1
Bankcard and other revolving plans		1				2			1				2				2
Other		—				—			1				—				—
Total consumer loans		11				9			13				14				16
Total net charge-offs		$	19			$	38		$	43			$	55			$	95

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ZIONS BANCORPORATION

Press Release – Page 14

January 28, 2013

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)



	Three Months Ended
	December 31, 2012					September 30, 2012					June 30, 2012
(In thousands)	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
ASSETS
Money market investments	$	8,652,394		0.28	%	$	7,990,243		0.27	%	$	7,786,191		0.26	%
Securities:
Held-to-maturity	740,297			5.29	%	758,761			5.32	%	797,843			5.72	%
Available-for-sale	2,958,311			3.01	%	3,052,559			2.93	%	3,084,771			3.34	%
Trading account	21,793			2.74	%	13,691			3.20	%	18,877			3.15	%
Total securities	3,720,401			3.46	%	3,825,011			3.41	%	3,901,491			3.82	%

Loans held for sale	231,710			3.22	%	183,224			3.52	%	157,308			3.99	%

Loans ¹:
Loans and leases	36,685,969			4.78	%	36,585,753			4.86	%	36,155,395			5.00	%
FDIC-supported loans	559,643			15.12	%	613,710			17.27	%	661,597			14.84	%
Total loans	37,245,612			4.94	%	37,199,463			5.07	%	36,816,992			5.17	%
Total interest-earning assets	49,850,117			4.01	%	49,197,941			4.15	%	48,661,982			4.27	%
Cash and due from banks	1,259,311					1,000,159					1,025,681
Allowance for loan losses	(925,943		)			(964,676		)			(1,006,606		)
Goodwill	1,014,986					1,015,129					1,015,129
Core deposit and other intangibles	53,083					57,345					61,511
Other assets	3,014,503					3,060,914					3,132,314
Total assets	$	54,266,057				$	53,366,812				$	52,890,011

LIABILITIES
Interest-bearing deposits:
Savings and money market	$	22,356,014		0.20	%	$	22,025,891		0.23	%	$	21,957,941		0.25	%
Time	3,038,934			0.64	%	3,162,165			0.69	%	3,264,853			0.75	%
Foreign	1,597,513			0.23	%	1,472,437			0.29	%	1,490,695			0.35	%
Total interest-bearing deposits	26,992,461			0.25	%	26,660,493			0.28	%	26,713,489			0.31	%
Borrowed funds:
Securities sold, not yet purchased	3,320			—	%	2,062			—	%	6,128			1.90	%
Federal funds purchased and security repurchase agreements	429,653			0.14	%	453,209			0.14	%	474,026			0.14	%
Other short-term borrowings	6,293			1.71	%	8,273			1.73	%	13,290			2.00	%
Long-term debt	2,318,478			8.80	%	2,297,409			8.93	%	2,329,608			11.25	%
Total borrowed funds	2,757,744			7.42	%	2,760,953			7.46	%	2,823,052			9.32	%
Total interest-bearing liabilities	29,750,205			0.91	%	29,421,446			0.96	%	29,536,541			1.17	%
Noninterest-bearing deposits	17,918,890					16,817,085					16,228,973
Other liabilities	610,316					606,973					582,743
Total liabilities	48,279,411					46,845,504					46,348,257
Shareholders’ equity:
Preferred equity	1,126,566					1,765,162					1,830,845
Common equity	4,862,972					4,758,858					4,713,318
Controlling interest shareholders’ equity	5,989,538					6,524,020					6,544,163
Noncontrolling interests	(2,892		)			(2,712		)			(2,409		)
Total shareholders’ equity	5,986,646					6,521,308					6,541,754
Total liabilities and shareholders’ equity	$	54,266,057				$	53,366,812				$	52,890,011

Spread on average interest-bearing funds				3.10	%				3.19	%				3.10	%

Net yield on interest-earning assets				3.47	%				3.58	%				3.56	%

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

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ZIONS BANCORPORATION

Press Release – Page 15

January 28, 2013

GAAP to Non-GAAP Reconciliation

(Unaudited)



Tangible Return on Average Tangible Common Equity
	Three Months Ended
(Amounts in thousands)	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011

Net earnings applicable to common shareholders (GAAP)	$	35,605		$	62,322		$	55,215		$	25,489		$	44,420

Adjustments, net of tax:
Impairment loss on goodwill	583			—			—			—			—
Amortization of core deposit and other intangibles	2,677			2,692			2,704			2,722			3,011
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP) (a)	$	38,865		$	65,014		$	57,919		$	28,211		$	47,431

Average common equity (GAAP)	$	4,862,972		$	4,758,858		$	4,713,318		$	4,644,722		$	4,583,748
Average goodwill	(1,014,986		)	(1,015,129		)	(1,015,129		)	(1,015,129		)	(1,015,125		)
Average core deposit and other intangibles	(53,083		)	(57,345		)	(61,511		)	(65,837		)	(70,345		)
Average tangible common equity (non-GAAP) (b)	$	3,794,903		$	3,686,384		$	3,636,678		$	3,563,756		$	3,498,278

Number of days in quarter (c)	92			92			91			91			92
Number of days in year (d)	366			366			366			366			365

Tangible return on average tangible common equity (non-GAAP) (a/b/c*d)	4.07		%	7.02		%	6.41		%	3.18		%	5.38		%

This press release presents the non-GAAP financial measure previously shown. The adjustments to reconcile from the applicable GAAP financial measure to the non-GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results.

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

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

# # #

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ - FORM 8-K - EX-99.1 - ZIONS BANCORPORATION PRESS RELEASE - January 28, 2013

Attached files

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ Reports