Zions Bancorporation, National Association 8K Zions Bancorporation Reports 2010 Second Quarter Results | ZION 19 Jul 10

***FOR IMMEDIATE RELEASE***

For: ZIONS BANCORPORATION Contact: James Abbott

One South Main, 15th Floor 60; Tel: (801) 524-4787

Salt Lake City, Utah July 19, 2010

Harris H. Simmons

Chairman/Chief Executive Officer

ZIONS BANCORPORATION REPORTS 2010 SECOND QUARTER RESULTS

SALT LAKE CITY, July 19, 2010 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported a second quarter net loss applicable to common shareholders of $135.2 million or $0.84 per diluted share, compared to a net loss of $86.5 million or $0.57 per diluted share for the first quarter of 2010.

Second Quarter 2010 Highlights

·	Nonperforming lending-related assets were $2.55 billion compared to $2.79 billion in the first quarter. Delinquent loans declined to $482.1 million from $600.6 million in the first quarter.

·	The provision for loan losses fell for the fourth consecutive quarter to $228.7 million compared to $265.6 million in the first quarter, while reserve coverage measures remained stable.

·	Average noninterest-bearing demand deposits increased to $13.3 billion from $12.5 billion in the first quarter.

·	While the net interest margin declined to 3.58% from 4.03% in the first quarter, primarily due to the effects of a subordinated debt conversion, the core net interest margin, which excludes subordinated debt conversions, remained strong at 4.14% compared to 4.26% in the first quarter.

·	The tangible common equity ratio increased to 6.86% compared to 6.30% in the first quarter, despite a larger balance sheet. Approximately 11.6% of tangible assets are in cash or cash equivalents, up from 8.8% in the first quarter.

·	Credit-related impairment losses on CDO securities fell to $18.1 million compared to $31.3 million in the first quarter.

·	In spite of originating and renewing approximately $1.8 billion of new credit during the second quarter, an approximante 30% increase compared to the first quarter, loan balances declined 2.5% from the first quarter due to continued weakness in loan demand.

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ZIONS BANCORPORATION

Press Release – Page 2

July 19, 2010

“We are encouraged with the decline in nonperforming lending-related assets, as well as an improvement in other problem credits; notably, more than 80% of the improvement in nonaccrual loans occurred in construction and term commercial real estate,” said Harris H. Simmons, chairman and chief executive officer. Mr Simmons continued, “Additionally, the capital raises completed during the quarter brought total capital ratios to record high levels.”

Asset Quality

Nonperforming lending-related assets declined 8.5% to $2,547.4 million at June 30, 2010 from $2,785.4 million at March 31, 2010. Nonaccrual loans declined 10.0% to $2,134.1 million at June 30, 2010 from $2,371.2 million at March 31, 2010. Delinquent loans (accruing loans past due 30-89 days and 90 days or more) declined 19.7% to $482.1 million at June 30, 2010 from $600.6 million at March 31, 2010. The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned was 6.59% at June 30, 2010 compared to 7.03% at March 31, 2010. The preceding amounts and comparisons include FDIC-supported assets.

The provision for loan losses was $228.7 million for the second quarter of 2010 compared to $265.6 million for the first quarter of 2010.

The allowance for loan losses as a percentage of net loans and leases increased to 4.11% at June 30, 2010 compared to 4.05% at March 31, 2010. The allowance for credit losses was $1,660.5 million, or 4.37% of net loans and leases at June 30, 2010, compared to 4.30% at March 31, 2010.

Net loan and lease charge-offs for the second quarter of 2010 were $255.2 million or 2.64% annualized of average loans, compared to $227.1 million or 2.29% annualized of average loans for the first quarter of 2010.

Capital Transactions

During the second quarter of 2010, the Company increased its Tier 1 capital by taking the following capital actions:

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ZIONS BANCORPORATION

Press Release – Page 3

July 19, 2010

		Issuance
(In millions)		amount

1.	Common stock equity distribution issuances	$	287.5
2.	Series E perpetual preferred stock		142.5
3.	Common stock warrants		185.0
	Total capital raised	$	615.0

1.	Common stock equity distribution issuances: The Company completed the sale of 12,295,917 shares of common stock for $287.5 million (average price of $23.38) that commenced May 24, 2010.

Series E perpetual preferred stock (NYSE: ZBPRE): The Company sold a total of 5,700,000 depositary shares (each share representing a 1/40th ownership interest in a share of Series E Fixed-Rate Resettable Non-Cumulative Perpetual Preferred Stock) at an offering price of $25 per depositary share with an initial dividend rate of 11%.

3.	Common stock warrants (Nasdaq Global Select Market: ZIONW): The Company sold 22,281,640 warrants at an offering price of $8.3028 per warrant.

On May 17, 2010, $116.6 million of convertible subordinated debt was converted into 116,624 shares of the Company’s Series C preferred stock. Accelerated discount amortization on the converted debt increased interest expense by a pretax amount of approximately $60.5 million.

On June 25, 2010, $8.6 million of Series A preferred stock was exchanged for 224,903 shares of the Company’s common stock at the fair value on that date of $23.82 per share. This preferred stock redemption increased retained earnings by approximately $3.1 million.

The tangible common equity ratio was 6.86% at June 30, 2010 compared to 6.30% at March 31, 2010. The change from March 31, 2010 was primarily due to the previously discussed capital transactions, partially offset by operating results and preferred stock dividends during the second quarter. The estimated Tier 1 common to risk-weighted assets ratio was 7.91% at June 30, 2010 compared to 7.14% at March 31, 2010. The more significant improvement in risk-based capital ratios compared to the tangible common equity ratio is due to a significantly higher mix of cash on the balance sheet, which was 11.6% of tangible assets at June 30, 2010 compared to 8.8% at March 31, 2010.

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ZIONS BANCORPORATION

Press Release – Page 4

July 19, 2010

Loans

Net loans and leases of $38.0 billion at June 30, 2010 decreased approximately $1.0 billion or 2.5% from $39.0 billion at March 31, 2010. Excluding construction and land development loans, the decrease was approximately $0.4 billion or 1.2% from March 31, 2010.

Deposits

Average noninterest-bearing demand deposits for the second quarter of 2010 increased $0.8 billion or 6.2% to $13.3 billion compared to $12.5 billion for the first quarter of 2010. Average total deposits for the second quarter of 2010 increased $0.4 billion or 0.9% to $42.2 billion compared to $41.8 billion for the first quarter of 2010. Gross loans were 90.8% of total deposits at June 30, 2010, compared to 93.0% at March 31, 2010.

Net Interest Income

The net interest margin decreased to 3.58% for the second quarter of 2010 compared to 4.03% for the first quarter of 2010. The net interest margin was reduced by 12 bp for the discount amortization on the convertible subordinated debt, and by an additional 52 bp for the accelerated discount amortization due to the previously discussed conversion of $116.6 million of convertible subordinated debt. The net interest margin was increased by 8 bp due to the recognition in interest income of the accretion on acquired loans based on increased projected cash flows. The core net interest margin, adjusted for the above items in both the first and second quarters, was 4.14% in the second quarter compared to 4.26% in the first quarter (see the subsequent GAAP to Non-GAAP reconciliation in this press release). The net decline in the core net interest margin from the first quarter was primarily due to higher cash balances.

Investment Securities

During the second quarter of 2010, the Company recognized credit-related net impairment losses on collateralized debt obligations (“CDOs”) of $18.1 million or $0.07 per diluted share, compared to $31.3 million or $0.13 per diluted share during the first quarter of 2010.

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ZIONS BANCORPORATION

Press Release – Page 5

July 19, 2010

CDOs for which the underlying collateral is predominantly bank trust preferred securities comprised $2.2 billion of the $2.7 billion par amount of the bank and insurance CDO portfolio at June 30, 2010. The following table shows the decrease in carrying value at June 30, 2010 of original single A and BBB rated CDOs compared to March 31, 2010. Approximately 90% of the $18.1 million of credit-related net impairment losses during the second quarter came from original single A and BBB rated CDOs.

(In millions)

	June 30, 2010															% of carrying						Change
Original	Par					Amortized cost					Carrying value					value to par						6/30/10
ratings	Amount		%			Amount		%			Amount		%			6/30/10			3/31/10			vs 3/31/10
AAA	$	1,131		52	%	$	939		54	%	$	816		73	%		72	%		72	%		0	%
A		949		44	%		772		44	%		297		26	%		31	%		35	%		-4	%
BBB		90		4	%		34		2	%		13		1	%		14	%		17	%		-3	%
	$	2,170		100	%	$	1,745		100	%	$	1,126		100	%		52	%		54	%		-2	%

Noninterest Income and Noninterest Expense

Noninterest income for the second quarter of 2010 was $109.4 million compared to $107.6 million for the first quarter of 2010. Noninterest expense for the second quarter of 2010 was $430.4 million compared to $389.1 million for the first quarter of 2010. The increase in noninterest expense during the second quarter of 2010 primarily resulted from (1) a $9.8 million increase in other real estate expense; (2) a $9.0 million increase in other noninterest expense from a reduction to the FDIC indemnification asset resulting from improvements in projected cash flows on acquired loans, and from other adjustments; and (3) the change in the provision for unfunded lending commitments to $0.5 million in the second quarter compared to a negative provision of $20.1 million in the first quarter. Excluding the effects of the reduction to the indemnification asset and the provision for unfunded lending commitments, noninterest expense increased by $11.6 million during the second quarter of 2010, most of which is explained by the increase in other real estate expense.

Conference Call

Zions will host a conference call to discuss these second quarter results at 5:30 p.m. ET this afternoon (July 19, 2010). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-877-368-2147 (international: 253-237-1247) and entering the passcode 84044344, or via on-demand webcast.

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ZIONS BANCORPORATION

Press Release – Page 6

July 19, 2010

A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. ET on Monday, July 19, 2010, until midnight ET on Monday, July 26, 2010, by dialing 1-800-642-1687 (international: 706-645-9291) and entering the passcode 84044344. 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 high growth markets. Zions operates its banking businesses under local management teams and community identities through approximately 500 offices in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

Statements in this press release that are based on other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including changes in

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ZIONS BANCORPORATION

Press Release – Page 7

July 19, 2010

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 litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business (including the Dodd-Frank Wall Street Reform and Consumer Protection Act); and changes in accounting policies, procedures or determinations as may be required by the Financial Accounting Standards Board or other regulatory agencies.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Zions Bancorporation’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov).

Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 8
FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended
(In thousands, except per share and ratio data)	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.04
Book value per common share		26.63			26.89			27.85			30.38			33.89
Tangible common equity per common share		20.19			19.89			20.35			22.01			24.78

SELECTED RATIOS
Return on average assets		(0.87	)%		(0.47	)%		(1.37	)%		(1.15	)%		(0.38	)%
Return on average common equity		(12.41	)%		(8.30	)%		(16.80	)%		(16.74	)%		(2.37	)%
Efficiency ratio		81.45	%		68.44	%		83.47	%		58.05	%		37.72	%
Net interest margin		3.58	%		4.03	%		3.81	%		3.91	%		4.10	%

Capital Ratios
Tangible common equity ratio		6.86	%		6.30	%		6.12	%		5.76	%		6.00	%
Tangible equity ratio		10.40	%		9.36	%		9.16	%		8.73	%		8.94	%
Average equity to average assets		11.59	%		11.16	%		10.76	%		10.94	%		10.41	%

Risk-Based Capital Ratios1:
Tier 1 common to risk-weighted assets		7.91	%		7.14	%		6.73	%		6.59	%		6.41	%
Tier 1 leverage		11.91	%		10.77	%		10.38	%		10.40	%		10.22	%
Tier 1 risk-based capital		12.64	%		11.19	%		10.53	%		10.34	%		10.00	%
Total risk-based capital		15.22	%		13.93	%		13.28	%		13.08	%		12.72	%

Taxable-equivalent net interest income	$	418,951		$	460,979		$	462,608		$	478,135		$	499,432

Weighted average common and common-
equivalent shares outstanding		161,810,017			151,073,384			139,858,788			127,581,404			115,908,127

Common shares outstanding		173,331,281			160,300,162			150,425,070			136,398,089			125,095,328

1 Ratios for June 30, 2010 are estimates.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
CONSOLIDATED BALANCE SHEETS
	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except share amounts)	2010			2010			2009			2009			2009
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	1,068,755		$	1,045,391		$	1,370,189		$	992,940		$	1,229,205
Money market investments:
Interest-bearing deposits		4,861,871			3,410,211			652,964			2,234,337			1,005,060
Federal funds sold		44,720			44,436			20,985			44,056			390,619
Security resell agreements		58,954			73,112			57,556			52,539			57,476
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$766,824, $820,689, $833,455, $835,814, and $891,186)		817,060			867,335			869,595			877,105			937,942
Available-for-sale, at fair value		3,416,448			3,437,098			3,655,619			3,547,092			3,903,895
Trading account, at fair value		85,707			50,698			23,543			76,709			78,608
		4,319,215			4,355,131			4,548,757			4,500,906			4,920,445

Loans held for sale		189,376			171,892			208,567			206,387			251,526

Loans:
Loans and leases excluding FDIC-supported loans		36,956,067			37,820,588			38,882,083			39,782,240			40,654,802
FDIC-supported loans		1,208,362			1,320,737			1,444,594			1,607,493			783,238
		38,164,429			39,141,325			40,326,677			41,389,733			41,438,040
Less:
Unearned income and fees, net of related costs		125,945			131,723			137,697			134,629			130,042
Allowance for loan losses		1,563,753			1,581,577			1,531,332			1,432,715			1,248,055
Loans and leases, net of allowance		36,474,731			37,428,025			38,657,648			39,822,389			40,059,943

Other noninterest-bearing investments		858,602			909,601			1,099,961			1,061,464			1,046,131
Premises and equipment, net		705,372			707,387			710,534			698,225			703,613
Goodwill		1,015,161			1,015,161			1,015,161			1,017,385			1,017,385
Core deposit and other intangibles		100,425			106,839			113,416			123,551			121,675
Other real estate owned		413,336			414,237			389,782			413,901			304,778
Other assets		2,036,777			2,031,558			2,277,487			2,130,070			1,660,098
	$	52,147,295		$	51,712,981		$	51,123,007		$	53,298,150		$	52,767,954

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	14,071,456		$	12,799,002		$	12,324,247		$	11,453,247		$	11,142,017
Interest-bearing:
Savings and NOW		6,030,986			5,978,536			5,843,573			5,392,096			4,949,711
Money market		15,562,664			16,667,011			16,378,874			17,413,735			17,276,743
Time under $100,000		2,155,366			2,306,101			2,497,395			2,784,593			2,845,893
Time $100,000 and over		2,509,479			2,697,261			3,117,472			3,949,684			4,455,225
Foreign		1,683,925			1,647,898			1,679,028			2,014,626			1,974,583
		42,013,876			42,095,809			41,840,589			43,007,981			42,644,172

Securities sold, not yet purchased		81,511			47,890			43,404			39,360			51,109
Federal funds purchased		391,213			477,959			208,669			1,008,181			1,169,809
Security repurchase agreements		500,812			475,832			577,346			509,014			565,975
Other liabilities		585,782			563,683			588,527			651,139			597,543
Commercial paper		1,149			3,123			1,084			2,449			1,019
Federal Home Loan Bank advances and other borrowings:
One year or less		217,440			175,312			120,189			42,962			47,152
Over one year		15,558			15,640			15,722			18,803			18,882
Long-term debt		1,918,852			2,000,821			2,017,220			2,324,020			1,917,598
Total liabilities		45,726,193			45,856,069			45,412,750			47,603,909			47,013,259

Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares		1,806,877			1,532,323			1,502,784			1,529,462			1,491,730
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 173,331,281, 160,300,162,
150,425,070, 136,398,089, and 125,095,328 shares		3,964,140			3,517,621			3,318,417			3,125,344			2,935,724
Retained earnings		1,099,621			1,236,497			1,324,516			1,502,232			1,685,522
Accumulated other comprehensive income (loss)		(433,020	)		(428,177	)		(436,899	)		(469,112	)		(368,164	)
Deferred compensation		(15,776	)		(16,058	)		(16,160	)		(15,218	)		(14,138	)
Controlling interest shareholders’ equity		6,421,842			5,842,206			5,692,658			5,672,708			5,730,674
Noncontrolling interests		(740	)		14,706			17,599			21,533			24,021
Total shareholders’ equity		6,421,102			5,856,912			5,710,257			5,694,241			5,754,695
	$	52,147,295		$	51,712,981		$	51,123,007		$	53,298,150		$	52,767,954

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

	Three Months Ended
(In thousands, except per share amounts)	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Interest income:
Interest and fees on loans	$	541,778		$	540,446		$	569,613		$	586,246		$	583,590
Interest on loans held for sale		1,937			2,363			2,735			2,434			3,082
Lease financing		4,251			5,129			5,289			5,125			4,735
Interest on money market investments		2,601			1,439			1,800			1,195			1,543
Interest on securities:
Held-to-maturity – taxable		6,113			2,456			(2,075	)		4,864			9,367
Held-to-maturity – nontaxable		4,883			5,135			5,396			5,806			5,796
Available-for-sale – taxable		19,818			20,971			21,063			23,460			26,982
Available-for-sale – nontaxable		1,700			1,721			1,813			1,830			1,778
Trading account		657			475			492			842			823
Total interest income		583,738			580,135			606,126			631,802			637,696

Interest expense:
Interest on savings and money market deposits		34,124			36,389			43,921			54,554			64,949
Interest on time and foreign deposits		18,629			19,687			28,671			42,780			52,577
Interest on short-term borrowings		3,486			3,067			2,714			2,325			3,661
Interest on long-term borrowings		114,153			65,692			73,931			59,963			22,821
Total interest expense		170,392			124,835			149,237			159,622			144,008

Net interest income		413,346			455,300			456,889			472,180			493,688
Provision for loan losses		228,663			265,565			390,719			565,930			762,654
Net interest income after provision for loan losses		184,683			189,735			66,170			(93,750	)		(268,966	)

Noninterest income:
Service charges and fees on deposit accounts		51,909			51,608			53,475			54,466			51,833
Other service charges, commissions and fees		43,395			39,042			38,794			39,227			40,291
Trust and wealth management income		7,021			7,609			5,825			8,209			8,750
Capital markets and foreign exchange		10,733			8,539			8,692			12,106			16,311
Dividends and other investment income		8,879			7,700			12,942			2,597			2,684
Loan sales and servicing income		5,617			6,432			7,011			2,359			7,040
Fair value and nonhedge derivative income (loss)		(1,552	)		2,188			31,367			58,092			20,316
Equity securities losses, net		(1,500	)		(3,165	)		(2,164	)		(1,805	)		(619	)
Fixed income securities gains (losses), net		530			1,256			(7,385	)		1,900			1,444
Impairment losses on investment securities:
Impairment losses on investment securities		(19,557	)		(48,570	)		(134,357	)		(198,378	)		(71,515	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		1,497			17,307			35,051			141,863			29,546
Net impairment losses on investment securities		(18,060	)		(31,263	)		(99,306	)		(56,515	)		(41,969	)
Valuation losses on securities purchased		-			-			-			-			(11,701	)
Gain on subordinated debt modification		-			-			15,220			-			493,725
Gain on subordinated debt exchange		-			14,471			-			-			-
Acquisition related gains		-			-			56			146,153			22,977
Other		2,441			3,193			1,360			3,951			1,654
Total noninterest income		109,413			107,610			65,887			270,740			612,736

Noninterest expense:
Salaries and employee benefits		205,776			204,333			206,823			205,433			202,420
Occupancy, net		27,822			28,488			28,667			28,556			26,651
Furniture and equipment		25,703			24,996			24,689			25,320			24,870
Other real estate expense		42,444			32,648			38,290			30,419			23,748
Legal and professional services		8,887			9,976			10,081			9,076	��		9,497
Postage and supplies		7,598			7,646			7,879			7,680			8,036
Advertising		5,772			6,374			5,738			4,418			5,678
FDIC premiums		26,438			24,210			24,197			19,820			42,329
Amortization of core deposit and other intangibles		6,414			6,577			10,135			7,575			7,078
Provision for unfunded lending commitments		483			(20,133	)		19,220			36,537			7,927
Other		73,018			64,011			65,410			59,873			61,235
Total noninterest expense		430,355			389,126			441,129			434,707			419,469

Impairment loss on goodwill		-			-			2,224			-			-

Income (loss) before income taxes		(136,259	)		(91,781	)		(311,296	)		(257,717	)		(75,699	)
Income taxes (benefit)		(22,898	)		(28,644	)		(125,809	)		(100,046	)		(23,761	)
Net income (loss)		(113,361	)		(63,137	)		(185,487	)		(157,671	)		(51,938	)
Net income (loss) applicable to noncontrolling interests		(368	)		(2,927	)		(1,423	)		(2,394	)		(1,209	)
Net income (loss) applicable to controlling interest		(112,993	)		(60,210	)		(184,064	)		(155,277	)		(50,729	)
Preferred stock dividends		(25,342	)		(26,311	)		(24,633	)		(26,603	)		(25,447	)
Preferred stock redemption		3,107			-			32,215			-			52,418
Net earnings (loss) applicable to common shareholders	$	(135,228	)	$	(86,521	)	$	(176,482	)	$	(181,880	)	$	(23,758	)

Weighted average common shares outstanding during the period:
Basic shares		161,810			151,073			139,859			127,581			115,908
Diluted shares		161,810			151,073			139,859			127,581			115,908

Net earnings (loss) per common share:
Basic	$	(0.84	)	$	(0.57	)	$	(1.26	)	$	(1.43	)	$	(0.21	)
Diluted		(0.84	)		(0.57	)		(1.26	)		(1.43	)		(0.21	)

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11

Loan Balances By Portfolio Type
(Unaudited)

(In millions)	June 30,		March 31,		December 31,		September 30,		June 30,
	2010		2010		2009		2009		2009
Commercial lending:
Commercial and industrial	$	9,419	$	9,578	$	9,922	$	10,124	$	10,588
Leasing		442		442		466		449		423
Owner occupied		8,334		8,457		8,752		8,745		8,782
Total commercial lending		18,195		18,477		19,140		19,318		19,793

Commercial real estate:
Construction and land development		4,484		5,060		5,552		6,087		6,848
Term		7,567		7,524		7,255		7,279		6,795
Total commercial real estate		12,051		12,584		12,807		13,366		13,643

Consumer:
Home equity credit line		2,139		2,121		2,135		2,114		2,086
1-4 family residential		3,549		3,584		3,642		3,698		3,781
Construction and other consumer real estate		379		403		459		537		599
Bankcard and other revolving plans		285		314		341		333		344
Other		271		279		293		343		342
Total consumer		6,623		6,701		6,870		7,025		7,152

Foreign loans		87		58		65		74		67

FDIC-supported loans 1		1,208		1,321		1,445		1,607		783
Total loans	$	38,164	$	39,141	$	40,327	$	41,390	$	41,438


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

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12

Nonperforming Lending-Related Assets
(Unaudited)

(In thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009

Nonaccrual loans	$	1,962,313		$	2,087,203		$	2,023,503		$	1,811,827		$	1,628,700
Other real estate owned		364,954			366,798			335,652			359,187			293,857
Nonperforming lending-related assets, excluding
FDIC-supported assets		2,327,267			2,454,001			2,359,155			2,171,014			1,922,557

FDIC-supported nonaccrual loans		171,764			283,999			355,911			544,558			125,854
FDIC-supported other real estate owned		48,382			47,439			54,130			54,714			10,921
FDIC-supported nonperforming assets 1		220,146			331,438			410,041			599,272			136,775
Total nonperforming assets	$	2,547,413		$	2,785,439		$	2,769,196		$	2,770,286		$	2,059,332

Ratio of nonperforming lending-related assets to net loans and leases 1
and other real estate owned		6.59	%		7.03	%		6.79	%		6.62	%		4.92	%

Accruing loans past due 90 days or more, excluding
FDIC-supported loans	$	131,773		$	60,009		$	107,040		$	186,519		$	178,300
FDIC-supported loans past due 90 days or more		5,483			22,275			56,260			35,553			18,231
Ratio of accruing loans past due 90 days or more to net loans 1		0.36	%		0.21	%		0.40	%		0.54	%		0.47	%

Nonaccrual loans and accruing loans past due 90 days or more	$	2,271,333		$	2,453,486		$	2,542,714		$	2,578,457		$	1,951,085
Ratio of nonaccrual loans and accruing loans past due
90 days or more to net loans and leases 1		5.94	%		6.26	%		6.29	%		6.22	%		4.69	%

Accruing loans past due 30-89 days, excluding
FDIC-supported loans	$	317,666		$	462,409		$	428,290		$	571,399		$	495,527
FDIC-supported loans past due 30-89 days		27,180			55,919			27,485			74,142			26,144

Restructured loans included in nonaccrual loans	$	338,378		$	340,165		$	298,820		$	106,922		$	100,590
Restructured loans on accrual		270,251			211,486			204,233			115,635			39,280


1 Includes loans held for sale.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13

Allowance for Credit Losses
(Unaudited)

	Three Months Ended
(In thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Allowance for Loan Losses
Balance at beginning of period	$	1,581,577		$	1,531,332		$	1,432,715		$	1,248,055		$	832,878
Add:
Provision for losses		228,663			265,565			390,719			565,930			762,654
Increase in allowance covered by FDIC indemnification		8,748			11,770			-			-			-
Deduct:
Gross loan and lease charge-offs		(279,025	)		(248,312	)		(355,601	)		(389,134	)		(353,226	)
Net charge-offs recoverable from FDIC		629			1,859			2,303			-			-
Recoveries		23,161			19,363			61,196			7,864			5,749
Net loan and lease charge-offs		(255,235	)		(227,090	)		(292,102	)		(381,270	)		(347,477	)
Balance at end of period	$	1,563,753		$	1,581,577		$	1,531,332		$	1,432,715		$	1,248,055

Ratio of allowance for loan losses to net loans and
leases, at period end		4.11	%		4.05	%		3.81	%		3.47	%		3.02	%

Ratio of allowance for loan losses to nonperforming
loans, at period end		73.28	%		66.70	%		64.36	%		60.80	%		71.13	%

Annualized ratio of net loan and lease charge-offs to
average loans		2.64	%		2.29	%		2.87	%		3.65	%		3.33	%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	96,312		$	116,445		$	97,225		$	60,688		$	52,761
Provision charged (credited) to earnings		483			(20,133	)		19,220			36,537			7,927
Balance at end of period	$	96,795		$	96,312		$	116,445		$	97,225		$	60,688

Total Allowance for Credit Losses
Allowance for loan losses	$	1,563,753		$	1,581,577		$	1,531,332		$	1,432,715		$	1,248,055
Reserve for unfunded lending commitments		96,795			96,312			116,445			97,225			60,688
Total allowance for credit losses	$	1,660,548		$	1,677,889		$	1,647,777		$	1,529,940		$	1,308,743

Ratio of total allowance for credit losses
to net loans and leases outstanding, at period end		4.37	%		4.30	%		4.10	%		3.71	%		3.17	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14

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

(In millions)	June 30,				March 31,				December 31,			September 30,			June 30,
			2010			2010				2009			2009	2009

Loans held for sale		$	-		$	-			$	-		$	-	$	18

Commercial lending:
Commercial and industrial			318			320				319			231		200
Leasing			8			8				11			10		10
Owner occupied			438			460				474			357		282
Total commercial lending			764			788				804			598		492

Commercial real estate:
Construction and land development			744			803				825			839		826
Term			281			324				228			221		126
Total commercial real estate			1,025			1,127				1,053			1,060		952

Consumer:
Home equity credit line			13			14				11			8		6
1-4 family residential			136			127				113			101		113
Construction and other consumer real estate			20			28				38			42		45
Bankcard and other revolving plans			1			-				1			1		1
Other			3			3				3			2		2
Total consumer			173			172				166			154		167
Total nonaccrual loans		$	1,962		$	2,087			$	2,023		$	1,812	$	1,629


Net Charge-Offs By Portfolio Type

(In millions)	June 30,				March 31,				December 31,			September 30,		June 30,
			2010			2010				2009			2009	2009
Commercial lending:
Commercial and industrial		$	52		$	49			$	36		$	70	$	117
Leasing			-			2				2			3		1
Owner occupied			35			36				27			19		9
Total commercial lending			87			87				65			92		127

Commercial real estate:
Construction and land development			99			86				139			219		156
Term			39			23				56			29		11
Total commercial real estate			138			109				195			248		167

Consumer:
Home equity credit line			7			7				4			6		3
1-4 family residential			14			15				14			17		24
Construction and other consumer real estate			6			5				10			10		17
Bankcard and other revolving plans			2			3				2			2		6
Other			2			3				4			6		4
Total consumer loans			31			33				34			41		54

Charge-offs recoverable from FDIC			(1	)		(2	)			(2	)		-		-

Total net charge-offs		$	255		$	227			$	292		$	381	$	348

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
	Three Months Ended
	June 30, 2010						March 31, 2010						December 31, 2009
(In thousands)	Average			Average			Average			Average			Average			Average
	balance			rate			balance			rate			balance			rate
ASSETS
Money market investments	$	3,853,275			0.27	%	$	2,227,181			0.26	%	$	2,761,132			0.26	%
Securities:
Held-to-maturity		852,906			6.41	%		864,021			4.86	%		875,730			2.82	%
Available-for-sale		3,364,126			2.67	%		3,378,930			2.83	%		3,507,766			2.70	%
Trading account		72,322			3.64	%		51,330			3.75	%		67,900			2.87	%
Total securities		4,289,354			3.43	%		4,294,281			3.25	%		4,451,396			2.72	%

Loans held for sale		166,612			4.66	%		179,433			5.34	%		208,219			5.21	%

Loans:
Net loans and leases excluding FDIC-supported loans 1		37,381,140			5.60	%		38,310,187			5.59	%		39,222,262			5.59	%
FDIC-supported loans		1,265,319			8.41	%		1,393,775			5.59	%		1,518,368			6.24	%
Total loans and leases		38,646,459			5.69	%		39,703,962			5.59	%		40,740,630			5.62	%
Total interest-earning assets		46,955,700			5.03	%		46,404,857			5.12	%		48,161,377			5.04	%
Cash and due from banks		1,444,343						1,280,013						1,191,881
Allowance for loan losses		(1,594,814	)					(1,565,136	)					(1,497,873	)
Goodwill		1,015,161						1,015,161						1,017,361
Core deposit and other intangibles		104,083						110,754						120,512
Other assets		3,945,496						4,306,119						4,266,457
Total assets	$	51,869,969					$	51,551,768					$	53,259,715

LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	6,026,526			0.35	%	$	5,842,531			0.36	%	$	5,505,938			0.38	%
Money market		16,292,870			0.71	%		16,515,285			0.77	%		17,247,187			0.89	%
Time under $100,000		2,247,255			1.36	%		2,365,645			1.44	%		2,637,651			1.78	%
Time $100,000 and over		2,590,056			1.30	%		2,911,319			1.23	%		3,575,690			1.53	%
Foreign		1,754,944			0.60	%		1,663,380			0.61	%		1,818,423			0.65	%
Total interest-bearing deposits		28,911,651			0.73	%		29,298,160			0.78	%		30,784,889			0.94	%
Borrowed funds:
Securities sold, not yet purchased		41,473			4.94	%		50,243			4.29	%		39,045			5.11	%
Federal funds purchased and security
repurchase agreements		871,441			0.14	%		1,137,716			0.20	%		1,611,774			0.26	%
Commercial paper		5,618			1.36	%		11,185			2.14	%		2,125			0.93	%
FHLB advances and other borrowings:
One year or less		199,755			5.31	%		141,018			5.52	%		89,891			5.01	%
Over one year		15,611			4.98	%		15,693			5.07	%		17,963			4.84	%
Long-term debt		1,963,082			23.28	%		2,028,912			13.09	%		2,230,949			13.11	%
Total borrowed funds		3,096,980			15.24	%		3,384,767			8.24	%		3,991,747			7.62	%
Total interest-bearing liabilities		32,008,631			2.14	%		32,682,927			1.55	%		34,776,636			1.70	%
Noninterest-bearing deposits		13,318,836						12,544,442						12,151,870
Other liabilities		530,457						570,028						601,724
Total liabilities		45,857,924						45,797,397						47,530,230
Shareholders’ equity:
Preferred equity		1,624,856						1,509,197						1,543,363
Common equity		4,371,255						4,229,021						4,166,944
Controlling interest shareholders’ equity		5,996,111						5,738,218						5,710,307
Noncontrolling interests		15,934						16,153						19,178
Total shareholders’ equity		6,012,045						5,754,371						5,729,485
Total liabilities and shareholders’ equity	$	51,869,969					$	51,551,768					$	53,259,715

Spread on average interest-bearing funds					2.89	%					3.57	%					3.34	%
Taxable-equivalent net interest income and
net yield on interest-earning assets					3.58	%					4.03	%					3.81	%

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

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16

GAAP to Non-GAAP Reconciliation
(Unaudited)
	Three Months Ended
	June 30,			March 31,
	2010			2010

Net interest margin as reported		3.58	%		4.03	%
Addback for the impact on net interest margin of:
Discount amortization on convertible subordinated debt		0.12	%		0.13	%
Accelerated discount amortization on convertible subordinated debt		0.52	%		0.10	%
Accretion of interest income on acquired loans		-0.08	%		-
Core net interest margin		4.14	%		4.26	%

This Press Release presents a “core net interest margin” which excludes the effects of the (1) discount amortization on convertible subordinated debt; (2) accelerated discount amortization on convertible subordinated debt; and (3) accretion of interest income on acquired loans based on increased projected cash flows (hereinafter collectively referred to as the “net interest margin adjustments”). The net interest margin adjustments are included in financial results presented in accordance with generally accepted accounting principles (“GAAP”). Management considers the net interest margin adjustments to be relevant to ongoing operating results.

The Company believes the exclusion of these net interest margin adjustments to present a core net interest margin provides a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. As a non-GAAP financial measure, the core net interest margin is used by management and the Board of Directors to assess the performance of the Company’s business for the following purposes:

• Evaluation of bank reporting segment performance

• Presentations of Company performance to investors

The Company believes that presenting the core net interest margin will permit investors 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 in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

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Zions Bancorporation, National Association (ZION) 8-KZions Bancorporation Reports 2010 Second Quarter Results