Zions Bancorporation, National Association (ZION) 8-K Regulation FD Disclosure

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2010 Citi Financial Services Conference

10th-11th March 2010 ■ New York

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Forward-Looking Statements

This presentation contains statements that relate to the projected performance of Zions Bancorporation
and elements of or affecting such performance, including statements with respect to the beliefs, plans,
objectives, goals, guidelines, expectations, anticipations and estimates of management.These
statements constitute forward-looking information within the meaning of the Private Securities Litigation
Reform Act.Actual facts, determinations, results or achievements may differ materially from the
statements provided in this presentation since such statements involve significant known and unknown
risks and uncertainties.Factors that might cause such differences include, but are not limited to:
competitive pressures among financial institutions; economic, market and business conditions, either
nationally or locally in areas in which Zions Bancorporation conducts its operations, being less
favorable than expected; changes in the interest rate environment reducing expected interest margins;
changes in debt, equity and securities markets; adverse legislation or regulatory changes; and other
factors described in Zions Bancorporation’s most recent annual and quarterly reports.In addition, the
statements contained in this presentation are based on facts and circumstances as understood by
management of the company on the date of this presentation, which may change in the future.Zions
Bancorporation disclaims any obligation to update any statements or to publicly announce the result of
any revisions to any of the forward-looking statements included herein to reflect future events,
developments, determinations or understandings.

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A Collection of Great Banks

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Strong Focus on Business Banking - Loan Mix, Profit Mix

Consumer

22%

CRE

32%

*Includes FDIC Supported Assets

* Commercial Loans: 79%

* Retail & Other Loans: 21%

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Zions’ Strengths

•Annual core pretax, pre-credit earnings range of $900 million to $950
million

–NIM: 3.81% in 4Q09, ranked #2 of regional banks/peers*

–Best among peers* for non-interest bearing deposits as a percent of earning assets

•Strong allowance for credit loss: 4.3% of loans

•Low original LTV ratios on term commercial real estate loans

•Markets with nation’s strongest long term growth profile

–Leading SBA Lender

–Superior Treasury Management Products

•Competitive operating cost structure

–Expense / Loan ratio: Best quartile

*Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

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Zions’ Challenges

•Rising NPAs, to 6.0% of loans from 5.4% in prior quarter (1)

–Total delinquent + NPA declined by 1.2% in 4Q09 compared to the prior quarter

•2009 net charge-off rate of 2.9% of loans; 4Q09 NCO rate: 3.0% (1)

•Continued securities impairments (OTTI), primarily on
bank/insurance CDOs - $99.3 million in 4Q

–Although OCI mark is already reflected in GAAP capital ratios, the difference
between Amortized Cost (OTTI mark) and Carrying Value (OCI mark) is $620
million, representing a potential earnings impairment

(1) Excludes FDIC supported assets

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Agenda

Key Issues Going Forward

–Net Interest Margin

–Credit Quality

–Term CRE

–Securities Portfolio

–Capital

Outlook Summary

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Net Interest Margin

Source: SNL (As Reported NIM - field not available for FHN)

Strong NIM

Driven by Strong Demand Deposits

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Core NIM Trends

Core NIM Performance

•Due to the
extinguishment/
reissuance of
subordinated debt in
June 2009, Zions
experiences non-cash
discount accretion,
which increases interest
expense, reducing GAAP
NIM

Core NIM (excludes discount accretion) has been generally stable

•1Q09 experienced a temporary dip due to an intentional build-up of excess
liquidity during the significant turmoil during late 2008/early 2009.

•Issuance of senior notes in September 2009 had about 8 bps adverse impact
on the core NIM in 4Q09.

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Agenda

Key Issues Going Forward

–Net Interest Margin

–Credit Quality

–Term CRE

–Securities Portfolio

–Capital

Outlook Summary

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*Annualized

Zions excludes FDIC supported assets

Note: Peer group includes U.S. regional banks with assets greater than $20
billion and less than $200 billion plus footprint competitors WFC and USB.

Source: SNL as of 2-11-10 (Peer Data)

•51% of 2009 NCOs Attributable to Construction, Land & Development

NPAs + Greater than 90 Days
Delinquent / Loans + OREO

Net Charge-offs as
a % of Loans*

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Note: Peer group includes U.S. regional banks with assets greater than $20 billion
and less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

Net Charge Offs - - By Loan Type
(Regional Bank Peers)

Percentage of Zions
Total Loans

Shaded Portion Represents
Gaming Credits

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Agenda

Key Issues Going Forward

–Net Interest Margin

–Credit Quality

–Term CRE

–Securities Portfolio

–Capital

Outlook Summary

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Change in CRE Loan Outstandings in $billions (4Q07 to 4Q09)

•A decline in
construction has
been partially offset
by Term CRE loan
growth

•Commercial
construction loans
must qualify for
“pass grade”
underwriting in
order to move from
Construction to
Term CRE

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Term CRE Maturity Stratification

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Term CRE - LTV Stratification At Origination*

*Or most recent appraisal; reappraisals are most frequently
conducted when a loan is downgraded to substandard

Percentage of Loans within each bucket that are Non-Accrual
2.9%	1.9%	1.6%	4.9%	17.4%	6.1%	1.2%

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Macroeconomic Data - MIT’s Transaction Based Index

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Term CRE - TBI* Adjusted LTV Stratification

*The MIT Transaction Based Index is a national index that has
been applied to ZBC's mostly regional CRE Portfolio

Percentage of Loans within each bucket that are Non-Accrual
3.1%	1.5%	2.8%	3.1%	7.3%	4.1%	1.9%

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Day of Reckoning - or Not?

•Eighty percent of the industry’s CRE loans
maturing in 2014 are projected to be underwater
(LTV >100%).

•Based on loans adjusted for price declines as
reflected in the 4Q09 MIT TBI, Zions would have
approximately 6% underwater.

•Loans Maturing in 2010 DO NOT include
approximately $92 MM of loans that have
matured, but are in workout

Source: American Banker, Foresight Analytics

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Jan-10

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C&I Outstanding Balance vs. Non Accrual Loans - NAICS (12/31/2009)

Percentage of Loans within each NAICS Category that are Non-Accrual
Construction	Finance	Manufacturing	Oil & Gas	Other	RE Investment & Dev.	Retail Trade	Service	Transport	Wholesale Trade
5.0%	2.0%	4.5%	5.2%	2.6%	4.0%	3.5%	3.9%	1.7%	5.9%

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Nonaccrual Loan Migration

-Favorable resolutions
increased 21% vs. 3Q09

-Unfavorable resolutions
declined 12% vs. 3Q09

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Agenda

Key Issues Going Forward

–Net Interest Margin

–Credit Quality

–Term CRE

–Securities Portfolio

–Capital

Outlook Summary

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CDO Portfolio Summary

•Credit-related OTTI losses $99.3 million in 4Q09
(approximately 95% of the impairment losses had been
previously recognized in OCI)

•Noncredit-related losses on securities of $35.1 million in
4Q09 recognized in OCI

*This table includes $2.2 billion par value of CDOs that are
backed predominantly by bank trust preferred securities. The
par value of all Bank & Insurance backed CDOs is $2.7 billion

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Model Implied Bank Failures (1 year)
Scenario @ 100%	Total within Zions’ CDOs	Total in Banking Universe
Actual Bank Failures in 2009	57	133
Future 1 Year Failures Implied in 4Q09 Pricing	95	221
Moderate Stress	117	272
Adverse Stress	162	377
Extreme Stress	218	507

•Under various stress scenarios,
Zions’ modeling indicates that
OCI (accumulated other
comprehensive income) would
erode, although at a significantly
lower amount than OTTI (other
than temporary impairment)

•OTTI: Under the moderate stress
scenario at 100% greater PD,
OTTI incurred would be
approximately $111 million (after
tax).

•OCI: Under the same moderate
stress scenario at 100% greater
PD, OCI would deteriorate by
approximately $45 million (after
tax).

CDO Stress Testing - OCI

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History of Bank Deferrals & Defaults in Zions’ CDOs

As of 2-23-10

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Agenda

Key Issues Going Forward

–Net Interest Margin

–Credit Quality

–Term CRE

–Securities Portfolio

–Capital

Outlook Summary

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Where We Are: Capital Ratios as of December 31, 2009

	4Q08	3Q09	4Q09
Tangible Common Equity (TCE)	5.89%	5.76%	6.12%
Tier 1 Common	6.28%	6.59%	6.73%
Tier 1 Risk Based	10.22%	10.34%	10.53%
Total Risk Based	14.32%	13.08%	13.28%

Sensitivity to capital ratios based on announced transactions

•Up to $250 million of common equity distribution announced in February 2010. Each
$100 million of common equity would add approximately 0.2% (20 bps) to the TCE and
Tier 1 capital ratios above.

•Subordinated debt tender offer announced in February 2010 ($190 million of debt
outstanding).Each incremental 25% participation rate would add approximately 0.1%
(10 bps) to the TCE and Tier 1 ratios above.

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Where We Are: Tier 1 + Reserves to Total Loans- 12/31/09

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200
billion plus footprint competitors WFC and USB.

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Capital Creation - - Zions’ equity raises less dilutive to shareholders

Equity issuance	$709	$0	$986	$2,037	$0	$1,415	$1,136	$478	$571
Liability management	$603	$0	$467	$1,345	$10	$24	$520	$0	$30
Other strategic	$99	$18	$1,473	$176	$4	$0	$20	$0	$34

Source: Credit Suisse

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Zions’ Approach to Capital

•Maintain and incrementally improve capital ratios

•Use all available “levers” to minimize dilution

–Common equity distribution programs

–Convertible instruments

•Modified sub debt converts to preferred (Tier 1)

–Reduce tangible assets (loan demand remains weak)

–Reduce risk-weightings of assets

–Preserve DTA - GAAP and RAAP

•Raise capital to repay TARP after credit
conditions and earnings outlook improve

–Cost of capital lower - common and preferred

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Risks to Approach

•Regulatory/political pressure to take action not in
shareholders’ interest

•Not raising enough/markets deteriorate

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▼	Loan Growth & Total Assets
▲	Low-Cost Deposit Growth
▼	Credit Costs
▲	Net Interest Margin
◄►	Core Non-interest Expenses
◄ ▼	OTTI
◄ ▲	Capital Ratios

Outlook Summary

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2010 Citi Financial Services Conference

10th - 11th March, 2010

New York City

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Appendix

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Risk-adjusted Net Interest Margin* (FY 2009)

*(Net Interest Income - Net Charge-offs)/Average Earning Assets

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200
billion plus footprint competitors WFC and USB.

Source: SNL

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Loan Portfolio Performance(12/31/2009)

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ZION vs. SCAP More Adverse Stress Loss Projections

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Construction loan overview- Resi Growth, NAL, NCO Trends

Residential Construction

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Construction loan overview - - Commercial Growth, NAL, NCO Trends

Commercial Construction

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Term CRE - Category Stratification

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Term CRE Credit Trends - - Effect of Gaming on Loss Rates

•Annualized 4Q09 NCOs Including Gaming: 3.1% annualized

•Annualized 4Q09 NCOs Excluding Gaming: 1.7% annualized

•Loss trends much more stable excluding gaming; gaming Term
CRE credits remaining: $74 million.

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CDO Stress Testing - OTTI

“Deterioration in PDs %” means that the default
curve applied to the performing collateral of
each deal is made worse by the percentage
indicated.Thus a deal with a default curve of
5% stressed to a 25% “Deterioration in PDs %”
would have a 6.25% defaults applied to it, a
deal with 20% would go 25% and so forth.
Thus a “Deterioration in PDs %” stress of 100%
would double the PD curve being applied to a
deal's collateral.

•Moderate Stress - -The PD curve that was
applied to the performing collateral of each
CDO deal in the 4Q09 pricing run is increased
by the % indicated and the resultant values
were used to estimate OTTI losses.

•Adverse Stress - -Incorporates all of the
deterioration of PDs applied to the performing
collateral, but also stresses the PDs applied to
collateral in deferral by the same deterioration
percentages.PDs on deferring collateral are
used to estimate the value of the potential for
this collateral to cure in the future through
recovery or re-performance.

•Extreme Stress - -This is a very severe stress
scenario that uses the “Moderate Stress”
assumptions for performing collateral, but also
immediately defaults all deferring collateral
instantly with no recovery and no probability to
re-perform in the future.

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Small Business Banking:

National Awards:

•Overall Satisfaction

•Relationship Manager Performance

•Financial Stability

•Overall Treasury Management

Regional Awards:

•Overall Satisfaction - - West

•Overall Satisfaction - - Treasury Management -
West

What Others Say About Us

2009 Greenwich Excellence Awards

in Small Business and Middle Market Banking

Middle Market Banking

National Awards:

•Overall Satisfaction

•Personal Banking

•Relationship Manager Performance

•Credit Policy

•Financial Stability

•Overall Treasury Management

•Accuracy of Operations

•Customer Service

•Treasury Product Capabilities

Regional Awards:

•Overall Satisfaction - - West

•Overall Satisfaction - - Treasury Management - West

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Frost

What Others Say About Us

Overall Financial Stability Compared to Willingness to Lend ($1 - $10 million)

Source: Greenwich Associates, Commercial Banking Study Q2 2009 ($1-$10 million)

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Asset Sensitivity

Fixed-rate loans:

–27% of portfolio

–Duration of about 1 year

Variable-rate loans:

–73% of portfolio

–Floors on 46% of variable-rate loans (79% of those loans are at the floor rate)

–Swaps: $760 million (Pay Floating, Receive Fixed)

•Continual reduction of interest rate swaps (increasing asset sensitivity)

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Loans with Floors (as of 12/31/09)

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