Zions Bancorporation, National Association (ZION) 8-K Zions Bancorporation Reports 2010 Fourth Quarter Results

Exhibit99.1

***FOR IMMEDIATE RELEASE***

For:  ZIONS BANCORPORATION	Contact: James Abbott
One South Main, 15th Floor	Tel: (801) 524-4787
Salt Lake City, Utah	January 24, 2011
Harris H. Simmons
Chairman/Chief Executive Officer

ZIONS BANCORPORATION REPORTS 2010 FOURTH QUARTER RESULTS

Risk Reduction Efforts Result in Improved Credit Measures

SALT LAKE CITY, January 24, 2011 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported a fourth quarter net loss applicable to common shareholders of $110.3 million or $0.62 per diluted share, compared to a net loss of $80.5 million or $0.47 per diluted share for the third quarter of 2010. Excluding the noncash effects of the discount amortization on convertible subordinated debt and additional accretion on acquired loans, the net loss was $44.1 million or $0.25 per diluted share for the fourth quarter and $51.2 million or $0.30 per diluted share for the third quarter.

Fourth Quarter 2010 Highlights

·   Classified loans fell 23% compared to the third quarter, after falling 9% from the second quarter.

·   Nonperforming lending-related assets continued to decline, down 20% to $1.83 billion from $2.29 billion in the third quarter.

·   The net interest margin declined to 3.49% from 3.84% in the third quarter, primarily due to the larger amount of subordinated debt conversion this quarter. The core net interest margin increased to 4.07% compared to 4.03% in the third quarter.

·   The Company reduced its credit risk profile, as construction and land development loans decreased $0.6 billion ($2.0 billion from a year ago). Commercial and industrial loans increased modestly.

·   The estimated Tier 1 common to risk-weighted assets ratio improved to 9.08% from 8.66% in the third quarter.

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ZIONS BANCORPORATION

Press Release – Page 2

January 24, 2011

“We are optimistic as we finish 2010 and begin 2011. We are particularly encouraged by the strong effort made during the fourth quarter to resolve more than a billion dollars of classified loans, the vast majority of which experienced favorable resolutions,” said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, “We are also sanguine about the declining rate of new inflows into nonaccrual and classified loan categories; in fact, classified loan inflows have declined more than 70% from the peak quarterly rate. Our higher-risk construction portfolio declined significantly during 2010, while business lending balances showed modest signs of growth in the fourth quarter.” Mr. Simmons concluded, “We are honored to be recognized again by Greenwich Associates as one of the premier bankin g franchises in the country, and the only bank in the country to achieve “Excellent” status in all middle-market treasury management categories.”

Asset Quality

Classified loans1 decreased 23% to $3.4 billion at December 31, 2010 from $4.4 billion at September 30, 2010, which was down 9% from $4.9 billion at June 30, 2010. Classified loan balances have now declined for three straight quarters and are down cumulatively $1.8 billion from their peak in the first quarter of 2010, a reduction of 34%. Classified loans that are current as to principal and interest were approximately 69-70% of the balance for the last three quarters.

Nonperforming lending-related assets declined 20% to $1,828.3 million at December 31, 2010 from $2,293.1 million at September 30, 2010. Nonaccrual loans declined 21% to $1,528.7 million at December 31, 2010 from $1,936.2 million at September 30, 2010. Nonaccrual loans that are current were approximately 35% of the balance at December 31, 2010. Delinquent loans (accruing loans past due 30-89 days and 90 days or more) declined 22% to $309.4 million at December 31, 2010 from $396.9 million at September 30, 2010. The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned was 4.91% at December 31, 2010 compared to 6.01% at September 30, 2010.

Other real estate owned declined 16.1% to its lowest level in over a year at $299.6 million at December 31, 2010 compared to $356.9 million at September 30, 2010. OREO expense decreased 42.5% to $25.5 million during the fourth quarter of 2010 compared to $44.3 million during the third quarter of 2010.

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ZIONS BANCORPORATION

Press Release – Page 3

January 24, 2011

The provision for loan losses declined to $173.2 million for the fourth quarter of 2010 from $184.7 million for the third quarter of 2010. The allowance for loan losses declined to $1,440.3 million at December 31, 2010 compared to $1,530.0 million at September 30, 2010. As a percentage of net loans and leases, the allowance was 3.92% at December 31, 2010 compared to 4.07% at September 30, 2010. The allowance for credit losses was $1,552.0 million, or 4.22% of net loans and leases at December 31, 2010, compared to $1,627.9 million, or 4.34% at September 30, 2010.

Net loan and lease charge-offs were $250.9 million for the fourth quarter of 2010 compared to $235.7 million for the third quarter of 2010, as the Company successfully resolved a significant portion of classified assets.

Loans

Net loans and leases of $36.7 billion at December 31, 2010 decreased approximately $0.8 billion or 2.1% from $37.5 billion at September 30, 2010. Approximately 80% of the quarterly decrease was in construction and land development loans, furthering the Company’s goal of reducing risk; such loans declined by more than 35% during 2010. The Company experienced net loan growth in commercial lending during the fourth quarter of 2010 for the first time since late 2008.

Certain FDIC-supported loans continue to experience better performance than previous estimates. The expectation of higher-than-expected cash flows from this portfolio results in a higher rate of accretion in loan balances and the recognition of additional interest income. The estimated effect on the financial statements of this higher accretion and the corresponding impact on the FDIC indemnification asset are summarized as follows:

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ZIONS BANCORPORATION

Press Release – Page 4

January 24, 2011

(In thousands)	December 31,				September 30,
	2010				2010
Balance sheet:
Change in assets – increase (decrease):
FDIC-supported loans		$	19,006			$	18,713
FDIC indemnification asset (included in other assets)			(15,205	)			(14,970	)
Balance at end of period:
FDIC-supported loans			971,377				1,089,926
FDIC indemnification asset (included in other assets)			195,515				233,631
	Three Months Ended
	December 31,				September 30,
	2010				2010
Statement of income:
Interest income:
Interest and fees on loans		$	19,006			$	18,713
Noninterest expense:
Other noninterest expense			15,205				14,970
Net increase in pretax income		$	3,801			$	3,743

Capital Transactions

During the fourth quarter of 2010, the Company increased its Tier 1 capital through common stock equity distribution issuances of 5,580,000 shares for $118.1 million (average price of $21.16). The total issued under the previously announced program during the third and fourth quarters was 9,516,300 shares for $193.5 million (average price of $20.34). Approximately $6.5 million may still be sold under the program. Net of commissions and fees, the fourth quarter issuances added $116.3 million to tangible common equity.

On November 15 and 16, 2010, $151.0 million of convertible subordinated debt was converted into depositary shares each representing a 1/40th interest in a share of the Company’s preferred stock. This conversion added 150,972 shares of Series C and 63 shares of Series A to the Company’s preferred stock. As previously disclosed, accelerated discount amortization on the converted debt increased interest expense by a pretax noncash amount of approximately $73.3 million compared to $27.5 million during the third quarter. Preferred stock dividends increased $4.9 million during the fourth quarter due to the increased number of preferred shares.

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ZIONS BANCORPORATION

Press Release – Page 5

January 24, 2011

The estimated Tier 1 common to risk-weighted assets ratio was 9.08% at December 31, 2010 compared to 8.66% at September 30, 2010.

Deposits

Average total deposits for the fourth quarter of 2010 decreased $0.5 billion or 1.2% to $41.2 billion compared to $41.7 billion for the third quarter of 2010, as the Company continued its efforts to reduce excess funding. Gross loans were 90.1% of total deposits at December 31, 2010, compared to 96.4% at December 31, 2009. Average noninterest-bearing demand deposits for the fourth quarter of 2010 decreased $0.2 billion or 1.3% to $13.6 billion compared to $13.8 billion for the third quarter of 2010.

Net Interest Income

The net interest margin decreased to 3.49% in the fourth quarter of 2010 compared to 3.84% in the third quarter of 2010, primarily due to the accelerated discount amortization when debt holders exercised their options to convert to preferred stock (62 bp, compared to 23 bp in the third quarter). The core net interest margin, adjusted for the amortization on convertible subordinated debt and accretion on acquired loans, was 4.07% in the fourth quarter compared to 4.03% in the third quarter, reflecting continued reduction in deposit pricing. The Company expects to report on or about February 15, 2011 the conversion amount for the first quarter of 2011.

Investment Securities

During the fourth quarter of 2010, the Company recognized credit-related net impairment losses on CDOs of $12.3 million or $0.04 per diluted share, compared to $23.7 million or $0.08 per diluted share during the third quarter of 2010, and $99.3 million or $0.44 per diluted share during the fourth quarter of 2009. The impairment included $5.3 million for bank and insurance trust preferred CDOs in the fourth quarter of 2010, $20.9 million in the third quarter of 2010, and $86.8 million in the fourth quarter of 2009.

CDOs for which the underlying collateral is predominantly bank trust preferred securities comprised $2.1 billion of the $2.6 billion par amount of the bank and insurance CDO portfolio at December 31, 2010. The following table shows the changes in carrying value at December 31, 2010 compared to September 30, 2010 according to original ratings:

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ZIONS BANCORPORATION

Press Release – Page 6

January 24, 2011

(In millions)
	December 31, 2010															% of carrying						Change
Original	Par					Amortized cost					Carrying value					value to par						12/31/10
ratings	Amount		%			Amount		%			Amount		%			12/31/10			9/30/10			vs 9/30/10
AAA	$	1,123		52	%	$	936		55	%	$	765		72	%		68	%		69	%		-1	%
A		948		44	%		745		43	%		292		27	%		31	%		31	%		0	%
BBB		74		4	%		34		2	%		10		1	%		13	%		13	%		0	%
	$	2,145		100	%	$	1,715		100	%	$	1,067		100	%		50	%		50	%		0	%

Noninterest Income and Noninterest Expense

Noninterest income for the fourth quarter of 2010 was relatively stable at $113.2 million compared to $110.2 million for the third quarter of 2010. Noninterest expense for the fourth quarter of 2010 was $443.4 million compared to $456.0 million for the third quarter of 2010. Primary changes in noninterest expense include a $12.7 million increase in the provision for unfunded lending commitments, a decrease in OREO expense of $18.8 million, and the recognition in the third quarter of $11.6 million of structuring costs for the total return swap executed during the third quarter of 2010.

Conference Call

Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 24, 2011). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-253-237-1247 and entering the passcode 31760484, 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 24, 2011, until midnight ET on Monday, January 31, 2011, by dialing 1-706-645-9291 and entering the passcode 31760484. The webcast of the conference call will also be archived and available for 30 days.

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ZIONS BANCORPORATION

Press Release – Page 7

January 24, 2011

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.zionsbancorporati on.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 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.

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ZIONS BANCORPORATION

Press Release – Page 8

January 24, 2011

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.

1 Classified loans referenced in this document are defined by internal Company loan credit ratings and generally have well defined credit weaknesses where the bank may sustain some loss if the deficiencies are not corrected.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended
(In thousands, except per share and ratio data)	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value per common share		25.12			26.07			26.63			26.89			27.85
Tangible common equity per common share		19.09			19.81			20.19			19.89			20.35
SELECTED RATIOS
Return on average assets		(0.56	)%		(0.36	)%		(0.87	)%		(0.47	)%		(1.37	)%
Return on average common equity		(9.51	)%		(6.94	)%		(12.41	)%		(8.30	)%		(16.80	)%
Net interest margin		3.49	%		3.84	%		3.58	%		4.03	%		3.81	%
Capital Ratios
Tangible common equity ratio		6.99	%		7.03	%		6.86	%		6.30	%		6.12	%
Tangible equity ratio		11.10	%		10.78	%		10.40	%		9.36	%		9.16	%
Average equity to average assets		12.80	%		12.40	%		11.59	%		11.16	%		10.76	%
Risk-Based Capital Ratios 1:
Tier 1 common to risk-weighted assets		9.08	%		8.66	%		7.91	%		7.14	%		6.73	%
Tier 1 leverage		12.53	%		12.00	%		11.80	%		10.77	%		10.38	%
Tier 1 risk-based capital		15.01	%		13.97	%		12.63	%		11.19	%		10.53	%
Total risk-based capital		17.36	%		16.54	%		15.25	%		13.93	%		13.28	%
Taxable-equivalent net interest income	$	412,001		$	457,172		$	418,953		$	460,981		$	462,608
Weighted average common and common-
equivalent shares outstanding		178,097,851			172,864,619			161,810,017			151,073,384			139,858,788
Common shares outstanding		182,783,526			177,202,340			173,331,281			160,300,162			150,425,070
1 Ratios for December 31, 2010 are estimates.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
CONSOLIDATED BALANCE SHEETS
	December 31,			September 30,				June 30,			March 31,			December 31,
(In thousands, except share amounts)	2010			2010				2010			2010			2009
	(Unaudited)			(Unaudited)				(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	924,126		$	1,060,646			$	1,068,755		$	1,045,391		$	1,370,189
Money market investments:
Interest-bearing deposits		4,576,008			4,468,778				4,861,871			3,410,211			652,964
Federal funds sold and security resell agreements		130,305			116,458				103,674			117,548			78,541
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$788,354, $783,362, $802,370, $856,256, and $833,455)		840,642			841,573				852,606			902,902			869,595
Available-for-sale, at fair value		4,205,742			3,295,864				3,416,448			3,437,098			3,655,619
Trading account, at fair value		48,667			42,811				85,707			50,698			23,543
		5,095,051			4,180,248				4,354,761			4,390,698			4,548,757
Loans held for sale		206,286			217,409				189,376			171,892			208,567
Loans:
Loans and leases excluding FDIC-supported loans		35,896,395			36,579,470				36,920,355			37,784,853			38,882,083
FDIC-supported loans		971,377			1,089,926				1,208,362			1,320,737			1,444,594
		36,867,772			37,669,396				38,128,717			39,105,590			40,326,677
Less:
Unearned income and fees, net of related costs		120,341			120,037				125,779			131,555			137,697
Allowance for loan losses		1,440,341			1,529,955				1,563,753			1,581,577			1,531,332
Loans and leases, net of allowance		35,307,090			36,019,404				36,439,185			37,392,458			38,657,648
Other noninterest-bearing investments		858,367			858,402				866,970			909,601			1,099,961
Premises and equipment, net		720,985			719,592				705,372			707,387			710,534
Goodwill		1,015,161			1,015,161				1,015,161			1,015,161			1,015,161
Core deposit and other intangibles		87,898			94,128				100,425			106,839			113,416
Other real estate owned		299,577			356,923				413,336			414,237			389,782
Other assets		1,814,032			1,940,627				2,028,409			2,031,558			2,277,487
	$	51,034,886		$	51,047,776			$	52,147,295		$	51,712,981		$	51,123,007
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	13,653,929		$	13,264,415			$	14,071,456		$	12,799,002		$	12,324,247
Interest-bearing:
Savings and NOW		6,362,138			6,394,964				6,030,986			5,978,536			5,843,573
Money market		15,090,833			15,398,157				15,562,664			16,667,011			16,378,874
Time under $100,000		1,941,211			2,037,318				2,155,366			2,306,101			2,497,395
Time $100,000 and over		2,232,238			2,417,779				2,509,479			2,697,261			3,117,472
Foreign		1,654,651			1,447,507				1,683,925			1,647,898			1,679,028
		40,935,000			40,960,140				42,013,876			42,095,809			41,840,589
Securities sold, not yet purchased		42,548			41,943				81,511			47,890			43,404
Federal funds purchased and security repurchase agreements		722,258			738,551				892,025			953,791			786,015
Other short-term borrowings		166,394			236,507				218,589			178,435			121,273
Long-term debt		1,942,622			1,939,395				1,934,410			2,016,461			2,032,942
Reserve for unfunded lending commitments		111,708			97,899				96,795			96,312			116,445
Other liabilities		467,142			538,750				488,987			467,371			472,082
Total liabilities		44,387,672			44,553,185				45,726,193			45,856,069			45,412,750
Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares		2,056,672			1,875,463				1,806,877			1,532,323			1,502,784
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 182,783,526, 177,202,340,
173,331,281, 160,300,162, and 150,425,070 shares		4,163,619			4,070,963				3,964,140			3,517,621			3,318,417
Retained earnings		889,284			1,001,559				1,083,845			1,220,439			1,308,356
Accumulated other comprehensive income (loss)		(461,296	)		(452,553	)	��		(433,020	)		(428,177	)		(436,899	)
Controlling interest shareholders’ equity		6,648,279			6,495,432				6,421,842			5,842,206			5,692,658
Noncontrolling interests		(1,065	)		(841	)			(740	)		14,706			17,599
Total shareholders’ equity		6,647,214			6,494,591				6,421,102			5,856,912			5,710,257
	$	51,034,886		$	51,047,776			$	52,147,295		$	51,712,981		$	51,123,007

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
(In thousands, except per share amounts)	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Interest income:
Interest and fees on loans	$	539,452		$	550,489		$	547,662		$	547,636		$	577,637
Interest on money market investments		3,419			3,487			2,601			1,439			1,800
Interest on securities:
Held-to-maturity		8,149			6,063			11,300			7,893			3,321
Available-for-sale		22,472			21,353			21,518			22,692			22,876
Trading account		546			542			657			475			492
Total interest income		574,038			581,934			583,738			580,135			606,126
Interest expense:
Interest on deposits		40,915			46,368			52,753			56,076			72,592
Interest on short-term borrowings		2,442			3,566			3,486			3,067			2,714
Interest on long-term debt		123,813			80,125			114,153			65,692			73,931
Total interest expense		167,170			130,059			170,392			124,835			149,237
Net interest income		406,868			451,875			413,346			455,300			456,889
Provision for loan losses		173,242			184,668			228,663			265,565			390,719
Net interest income after provision for loan losses		233,626			267,207			184,683			189,735			66,170
Noninterest income:
Service charges and fees on deposit accounts		46,498			49,733			51,909			51,608			53,475
Other service charges, commissions and fees		41,124			41,780			43,395			39,042			38,794
Trust and wealth management income		6,512			6,310			7,021			7,609			5,825
Capital markets and foreign exchange		10,309			8,055			10,733			8,539			8,692
Dividends and other investment income		7,621			8,874			8,879			7,700			12,942
Loan sales and servicing income		8,943			8,390			5,617			6,432			7,011
Fair value and nonhedge derivative income (loss)		292			(16,755	)		(1,552	)		2,188			31,367
Equity securities losses, net		(246	)		(1,082	)		(1,500	)		(3,165	)		(2,164	)
Fixed income securities gains (losses), net		841			8,428			530			1,256			(7,385	)
Impairment losses on investment securities:
Impairment losses on investment securities		(15,243	)		(73,082	)		(19,557	)		(48,570	)		(134,357	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		2,923			49,370			1,497			17,307			35,051
Net impairment losses on investment securities		(12,320	)		(23,712	)		(18,060	)		(31,263	)		(99,306	)
Gain on subordinated debt modification		-			-			-			-			15,220
Gain on subordinated debt exchange		-			-			-			14,471			-
Acquisition related gains		-			-			-			-			56
Other		3,665			20,179			2,441			3,193			1,360
Total noninterest income		113,239			110,200			109,413			107,610			65,887
Noninterest expense:
Salaries and employee benefits		207,288			207,947			205,776			204,333			206,823
Occupancy, net		27,957			29,292			27,822			28,488			28,667
Furniture and equipment		24,771			25,591			25,703			24,996			24,689
Other real estate expense		25,467			44,256			42,444			32,648			38,290
Credit related expense		19,284			17,438			17,658			16,825			16,347
Provision for unfunded lending commitments		13,809			1,104			483			(20,133	)		19,220
Legal and professional services		11,372			9,305			8,887			9,976			10,081
Advertising		7,099			5,575			5,772			6,374			5,738
FDIC premiums		25,636			25,706			26,438			24,210			24,197
Amortization of core deposit and other intangibles		6,230			6,296			6,414			6,577			10,135
Other		74,443			83,534			62,958			54,832			56,942
Total noninterest expense		443,356			456,044			430,355			389,126			441,129
Impairment loss on goodwill		-			-			-			-			2,224
Income (loss) before income taxes		(96,491	)		(78,637	)		(136,259	)		(91,781	)		(311,296	)
Income taxes (benefit)		(24,097	)		(31,180	)		(22,898	)		(28,644	)		(125,809	)
Net income (loss)		(72,394	)		(47,457	)		(113,361	)		(63,137	)		(185,487	)
Net income (loss) applicable to noncontrolling interests		(194	)		(132	)		(368	)		(2,927	)		(1,423	)
Net income (loss) applicable to controlling interest		(72,200	)		(47,325	)		(112,993	)		(60,210	)		(184,064	)
Preferred stock dividends		(38,087	)		(33,144	)		(25,342	)		(26,311	)		(24,633	)
Preferred stock redemption		-			-			3,107			-			32,215
Net earnings (loss) applicable to common shareholders	$	(110,287	)	$	(80,469	)	$	(135,228	)	$	(86,521	)	$	(176,482	)
Weighted average common shares outstanding during the period:
Basic shares		178,098			172,865			161,810			151,073			139,859
Diluted shares		178,098			172,865			161,810			151,073			139,859
Net earnings (loss) per common share:
Basic	$	(0.62	)	$	(0.47	)	$	(0.84	)	$	(0.57	)	$	(1.26	)
Diluted		(0.62	)		(0.47	)		(0.84	)		(0.57	)		(1.26	)

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12
Loan Balances By Portfolio Type
(Unaudited)
(In millions)	December 31,		September 30,		June 30,		March 31,		December 31,
	2010		2010		2010		2010		2009
Commercial lending:
Commercial and industrial	$	9,607	$	9,486	$	9,471	$	9,601	$	9,987
Leasing		410		402		442		442		466
Owner occupied		8,217		8,345		8,334		8,457		8,752
Total commercial lending		18,234		18,233		18,247		18,500		19,205
Commercial real estate:
Construction and land development		3,567		4,206		4,484		5,060		5,552
Term		7,582		7,550		7,567		7,524		7,255
Total commercial real estate		11,149		11,756		12,051		12,584		12,807
Consumer:
Home equity credit line		2,142		2,157		2,139		2,121		2,135
1-4 family residential		3,499		3,509		3,549		3,584		3,642
Construction and other consumer real estate		343		366		379		403		459
Bankcard and other revolving plans		297		287		285		314		341
Other		233		271		271		279		293
Total consumer		6,514		6,590		6,623		6,701		6,870
FDIC-supported loans 1		971		1,090		1,208		1,321		1,445
Total loans	$	36,868	$	37,669	$	38,129	$	39,106	$	40,327
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 13
Nonperforming Lending-Related Assets
(Unaudited)
(In thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Nonaccrual loans	$	1,492,869		$	1,809,570		$	1,962,313		$	2,087,203		$	2,023,503
Other real estate owned		259,614			304,498			364,954			366,798			335,652
Nonperforming lending-related assets, excluding
FDIC-supported assets		1,752,483			2,114,068			2,327,267			2,454,001			2,359,155
FDIC-supported nonaccrual loans		35,837			126,634			171,764			283,999			355,911
FDIC-supported other real estate owned		39,963			52,425			48,382			47,439			54,130
FDIC-supported nonperforming assets		75,800			179,059			220,146			331,438			410,041
Total nonperforming assets	$	1,828,283		$	2,293,127		$	2,547,413		$	2,785,439		$	2,769,196
Ratio of nonperforming lending-related assets to net loans
and leases 1 and other real estate owned		4.91	%		6.01	%		6.60	%		7.04	%		6.79	%
Accruing loans past due 90 days or more, excluding
FDIC-supported loans	$	23,218		$	74,829		$	131,773		$	60,009		$	107,040
FDIC-supported loans past due 90 days or more		6,989			9,689			5,483			22,275			56,260
Ratio of accruing loans past due 90 days or more to
net loans and leases 1		0.08	%		0.22	%		0.36	%		0.21	%		0.40	%
Nonaccrual loans and accruing loans past due 90 days or more	$	1,558,913		$	2,020,722		$	2,271,333		$	2,453,486		$	2,542,714
Ratio of nonaccrual loans and accruing loans past due
90 days or more to net loans and leases 1		4.22	%		5.35	%		5.95	%		6.27	%		6.29	%
Accruing loans past due 30-89 days, excluding
FDIC-supported loans	$	262,714		$	303,472		$	317,666		$	462,409		$	428,290
FDIC-supported loans past due 30-89 days		16,478			8,919			27,180			55,919			27,485
Restructured loans included in nonaccrual loans	$	367,135		$	354,434		$	339,113		$	340,165		$	298,820
Restructured loans on accrual		387,357			334,416			288,388			211,486			204,233
1 Includes loans held for sale.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14
Allowance for Credit Losses
(Unaudited)
	Three Months Ended
(In thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Allowance for Loan Losses
Balance at beginning of period	$	1,529,955		$	1,563,753		$	1,581,577		$	1,531,332		$	1,432,715
Add:
Provision for losses		173,242			184,668			228,663			265,565			390,719
Change in allowance covered by FDIC indemnification		(11,930	)		17,190			8,748			11,770			-
Deduct:
Gross loan and lease charge-offs		(282,803	)		(263,673	)		(279,025	)		(248,312	)		(355,601	)
Net charge-offs recoverable from FDIC		5,884			5,674			629			1,859			2,303
Recoveries		25,993			22,343			23,161			19,363			61,196
Net loan and lease charge-offs		(250,926	)		(235,656	)		(255,235	)		(227,090	)		(292,102	)
Balance at end of period	$	1,440,341		$	1,529,955		$	1,563,753		$	1,581,577		$	1,531,332
Ratio of allowance for loan losses to net loans and
leases, at period end		3.92	%		4.07	%		4.11	%		4.06	%		3.81	%
Ratio of allowance for loan losses to nonperforming
loans, at period end		94.22	%		79.02	%		73.28	%		66.70	%		64.36	%
Annualized ratio of net loan and lease charge-offs to
average loans		2.71	%		2.50	%		2.64	%		2.29	%		2.87	%
Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	97,899		$	96,795		$	96,312		$	116,445		$	97,225
Provision charged (credited) to earnings		13,809			1,104			483			(20,133	)		19,220
Balance at end of period	$	111,708		$	97,899		$	96,795		$	96,312		$	116,445
Total Allowance for Credit Losses
Allowance for loan losses	$	1,440,341		$	1,529,955		$	1,563,753		$	1,581,577		$	1,531,332
Reserve for unfunded lending commitments		111,708			97,899			96,795			96,312			116,445
Total allowance for credit losses	$	1,552,049		$	1,627,854		$	1,660,548		$	1,677,889		$	1,647,777
Ratio of total allowance for credit losses
to net loans and leases outstanding, at period end		4.22	%		4.34	%		4.37	%		4.31	%		4.10	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
Nonaccrual Loans By Portfolio Type
(Excluding FDIC-Supported Loans)
(Unaudited)
(In millions)	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Commercial lending:
Commercial and industrial	$	226		$	284		$	318		$	320		$	319
Leasing		1			2			8			8			11
Owner occupied		342			414			438			460			474
Total commercial lending		569			700			764			788			804
Commercial real estate:
Construction and land development		494			660			744			803			825
Term		264			263			281			324			228
Total commercial real estate		758			923			1,025			1,127			1,053
Consumer:
Home equity credit line		14			16			13			14			11
1-4 family residential		125			145			136			127			113
Construction and other consumer real estate		24			22			20			28			38
Bankcard and other revolving plans		1			1			1			-			1
Other		2			3			3			3			3
Total consumer		166			187			173			172			166
Total nonaccrual loans	$	1,493		$	1,810		$	1,962		$	2,087		$	2,023
Net Charge-Offs By Portfolio Type
(In millions)	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Commercial lending:
Commercial and industrial	$	55		$	72		$	52		$	49		$	36
Leasing		3			3			-			2			2
Owner occupied		43			32			35			36			27
Total commercial lending		101			107			87			87			65
Commercial real estate:
Construction and land development		81			71			99			86			139
Term		44			31			39			23			56
Total commercial real estate		125			102			138			109			195
Consumer:
Home equity credit line		9			6			7			7			4
1-4 family residential		14			15			14			15			14
Construction and other consumer real estate		2			7			6			5			10
Bankcard and other revolving plans		3			2			2			3			2
Other		3			3			2			3			4
Total consumer loans		31			33			31			33			34
Charge-offs recoverable from FDIC		(6	)		(6	)		(1	)		(2	)		(2	)
Total net charge-offs	$	251		$	236		$	255		$	227		$	292

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
	Three Months Ended						Three Months Ended						Three Months Ended
	December 31, 2010						September 30, 2010						June 30, 2010
(In thousands)	Average			Average			Average			Average			Average			Average
	balance			rate			balance			rate			balance			rate
ASSETS
Money market investments	$	5,022,668			0.27	%	$	5,192,847			0.27	%	$	3,853,275			0.27	%
Securities:
Held-to-maturity		832,125			5.06	%		843,268			4.14	%		888,466			6.36	%
Available-for-sale		3,639,181			2.53	%		3,282,056			2.68	%		3,364,126			2.67	%
Trading account		60,898			3.56	%		59,216			3.63	%		72,322			3.64	%
Total securities		4,532,204			3.01	%		4,184,540			2.99	%		4,324,914			3.45	%
Loans held for sale		212,822			4.49	%		188,794			4.67	%		166,612			4.66	%
Loans:
Net loans and leases excluding FDIC-supported loans 1		36,046,889			5.56	%		36,525,416			5.60	%		37,345,580			5.60	%
FDIC-supported loans		1,033,999			13.08	%		1,149,976			11.93	%		1,265,319			8.41	%
Total loans and leases		37,080,888			5.77	%		37,675,392			5.79	%		38,610,899			5.69	%
Total interest-earning assets		46,848,582			4.90	%		47,241,573			4.93	%		46,955,700			5.03	%
Cash and due from banks		1,071,389						1,063,000						1,444,343
Allowance for loan losses		(1,504,034	)					(1,556,558	)					(1,594,814	)
Goodwill		1,015,161						1,015,161						1,015,161
Core deposit and other intangibles		91,338						97,741						104,083
Other assets		3,784,589						3,917,955						3,945,496
Total assets	$	51,307,025					$	51,778,872					$	51,869,969
LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	6,488,349			0.31	%	$	6,186,704			0.32	%	$	6,026,526			0.35	%
Money market		15,229,655			0.55	%		15,584,312			0.63	%		16,292,870			0.71	%
Time under $100,000		2,001,693			1.13	%		2,103,818			1.25	%		2,247,255			1.36	%
Time $100,000 and over		2,316,452			1.15	%		2,462,904			1.21	%		2,590,056			1.30	%
Foreign		1,526,859			0.61	%		1,563,090			0.60	%		1,754,944			0.60	%
Total interest-bearing deposits		27,563,008			0.59	%		27,900,828			0.66	%		28,911,651			0.73	%
Borrowed funds:
Securities sold, not yet purchased		28,785			4.45	%		38,789			4.33	%		41,473			4.94	%
Federal funds purchased and security
repurchase agreements		800,891			0.14	%		873,954			0.14	%		871,441			0.14	%
Other short-term borrowings		186,500			3.92	%		210,235			5.34	%		205,373			5.20	%
Long-term debt		1,952,428			25.16	%		1,945,775			16.34	%		1,978,693			23.14	%
Total borrowed funds		2,968,604			16.87	%		3,068,753			10.82	%		3,096,980			15.24	%
Total interest-bearing liabilities		30,531,612			2.17	%		30,969,581			1.67	%		32,008,631			2.14	%
Noninterest-bearing deposits		13,607,309						13,786,784						13,318,836
Other liabilities		601,253						601,439						530,457
Total liabilities		44,740,174						45,357,804						45,857,924
Shareholders’ equity:
Preferred equity		1,966,098						1,819,889						1,624,856
Common equity		4,601,598						4,601,920						4,371,255
Controlling interest shareholders’ equity		6,567,696						6,421,809						5,996,111
Noncontrolling interests		(845	)					(741	)					15,934
Total shareholders’ equity		6,566,851						6,421,068						6,012,045
Total liabilities and shareholders’ equity	$	51,307,025					$	51,778,872					$	51,869,969
Spread on average interest-bearing funds					2.73	%					3.26	%					2.89	%
Net yield on interest-earning assets					3.49	%					3.84	%					3.58	%
(1) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 17
GAAP to Non-GAAP Reconciliation
(Unaudited)
			Three Months Ended
			December 31, 2010						September 30, 2010
						Diluted						Diluted
			Amount			EPS			Amount			EPS
	1.	Net Loss Excluding the Effects of the Discount Amortization on Convertible
		Subordinated Debt and Additional Accretion on Acquired Loans
		Net earnings (loss) applicable to common shareholders (GAAP)	$	(110,287	)	$	(0.62	)	$	(80,469	)	$	(0.47	)
		Addback for the impact of:
		Discount amortization on convertible subordinated debt		8,499			0.05			9,084			0.05
		Accelerated discount amortization on convertible subordinated debt		59,887			0.33			22,322			0.13
		Additional accretion of interest income on acquired loans, net of expense		(2,203	)		(0.01	)		(2,169	)		(0.01	)
		Net earnings (loss) excluding the effects of the discount amortization on convertible
		subordinated debt and additional accretion on acquired loans (non-GAAP)	$	(44,104	)	$	(0.25	)	$	(51,232	)	$	(0.30	)
			Three Months Ended
			December 31, 2010						September 30, 2010
	2.	Core Net Interest Margin
		Net interest margin as reported (GAAP)		3.49	%					3.84	%
		Addback for the impact on net interest margin of:
		Discount amortization on convertible subordinated debt		0.12	%					0.12	%
		Accelerated discount amortization on convertible subordinated debt		0.62	%					0.23	%
		Additional accretion of interest income on acquired loans		-0.16	%					-0.16	%
		Core net interest margin (non-GAAP)		4.07	%					4.03	%

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

The Company believes the exclusion of these amortization and accretion adjustments to present results of operations 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 exclusion of these amortization and accretion adjustments by management and the Board of Directors facilitates the ability 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 results of operations excluding these amortization and accretion adjustments 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 an analytical tool, and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

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