Zions Bancorporation, National Association (ZION) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

***FOR IMMEDIATE RELEASE***

For: ZIONS BANCORPORATION	Contact: Clark Hinckley
One South Main Street, Suite 1134	Tel: (801) 524-4787
Salt Lake City, Utah	January 25, 2005
Harris H. Simmons
Chairman/Chief Executive Officer

ZIONS BANCORPORATION REPORTS RECORD EARNINGS OF

$1.15 PER DILUTED SHARE FOR FOURTH QUARTER 2004

Strong Loan Growth and Net Interest Margin Improvement Drive Performance

SALT LAKE CITY, January 25, 2005 – Zions Bancorporation (“Zions” or “the Company”) (Nasdaq: ZION) today reported record fourth-quarter net income of $105.0 million, or $1.15 per diluted share. Net income and earnings per diluted share increased 9.8% and 9.5% over the $95.6 million, or $1.05 per diluted share for the fourth quarter of 2003. The return on average common equity was 15.13% in the fourth quarter of 2004, up from 15.05% for the same period in 2003.

Net income for 2004 increased 20.2% to a record $406.0 million, or $4.47 per diluted share, from the $337.8 million, or $3.72 per diluted share for 2003. The return on average common equity for 2004 was 15.27%, compared to 13.69% for 2003.

“We are very pleased with the record earnings for both the quarter and all of 2004,” stated Harris H. Simmons, chairman and chief executive officer. “Continued strong loan growth, coupled with modest core deposit growth, good credit quality and an improving net interest margin combined to produce strong revenue and earnings growth. We also experienced favorable changes in the mix of both earning assets and funding sources, which more than offset the challenges of a flattening yield curve.”

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ZIONS BANCORPORATION

Press Release – Page 2

January 25, 2005

Loan and Deposit Growth

Average loans and leases for the fourth quarter of 2004 were $21.9 billion, up $646.3 million or 12.2%, annualized from the third quarter 2004 average balance of $21.2 billion, and up 11.9% from the $19.5 billion average balance for the fourth quarter of 2003. Strong loan demand was experienced in virtually all major loan categories and was diversified geographically.

Average deposits for the fourth quarter of 2004 increased to $23.1 billion, an increase of 7.3%, annualized over the average balance for the third quarter of 2004, and up 11.4% over the average balance for the fourth quarter of 2003. Average core deposits increased 7.6%, annualized for the quarter, and 12.0% year over year. Average noninterest-bearing demand deposits increased $334 million or 20.7%, annualized compared to the third quarter of 2004, and $1.1 billion or 20.1% year over year. Loan growth exceeded deposit growth during both the quarter and the full year 2004. Loan securitizations and short-term borrowings were used to fund the excess loan growth.

Net Interest Income

Taxable-equivalent net interest income increased 12.2% for the quarter to $318.5 million compared to $283.9 million for the fourth quarter of 2003. The increase reflects the previously discussed loan and deposit growth coupled with an improved net interest margin. For the fourth quarter of 2004, the net interest margin was 4.49%, compared to 4.25% for the third quarter of 2004 and 4.39% for the fourth quarter of 2003. The higher margin is attributable to increases in interest rates on variable rate loans, significant increases in average noninterest-bearing deposit accounts and substantial decreases in short-term investments.

Noninterest Income

For the fourth quarter of 2004, noninterest income decreased 13.2% to $95.0 million compared with $109.5 million for the third quarter of 2004, and 7.5% compared with $102.8 million for the fourth quarter of 2003.

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ZIONS BANCORPORATION

Press Release – Page 3

January 25, 2005

Deposit service charges declined primarily as a result of higher earnings credit rates on commercial transaction accounts as market interest rates rose. Loan sales and servicing income for the quarter decreased $3.0 million compared to the fourth quarter of 2003 due largely to fewer loan sales in 2004 and reduced cash flows from loan securitizations. Market making, trading and nonhedge derivative income declined $1.5 million compared with the same period in 2003. The decrease included a $2.9 million decline in trading income resulting from a lower margin per trade.

Net equity securities losses were $4.7 million for the fourth quarter of 2004, which consisted primarily of a $4.0 million equity investment write down, compared with net equity securities gains of $4.3 million in the third quarter. For the full year 2004, net equity securities losses were $9.8 million. This compares to net gains of $63.8 million in 2003, which included two large gains on the sales of publicly traded securities.

Noninterest Expense

Noninterest expense for the fourth quarter of 2004 was $238.2 million, an increase of 2.3% from the $232.8 million in the third quarter of 2004, and 9.3% from the $218.0 million for the fourth quarter of 2003. The efficiency ratio for the fourth quarter of 2004 was 57.6% compared to 56.8% for the third quarter of 2004 and 56.4% for the fourth quarter of 2003.

Salaries and employee benefits increased from the third quarter of 2004, due principally to increases in incentive plan costs and higher staff levels resulting from business expansion. Legal and professional services increased over the third quarter primarily as a result of additional consulting services for various ongoing projects relating to systems conversions and upgrades. Restructuring costs of $0.6 million represent severance-related costs associated with the previously announced reorganization of Zions Bank International Ltd.

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ZIONS BANCORPORATION

Press Release – Page 4

January 25, 2005

Provision for Income Taxes

During the third quarter of 2004, the Company signed an agreement that confirmed and implemented its award of a $100 million allocation of tax credit authority under the Community Development Financial Institutions Fund established by the U.S. Government. Under the program, Zions will invest $100 million in a wholly-owned subsidiary that will make qualifying loans and investments, for which Zions will receive Federal income tax credits that will be recognized over the next seven years. The effect of these tax credits on the fourth quarter of 2004 was to reduce income tax expense by approximately $2.9 million, which was substantially all of the $3.0 million credit that the Company was entitled to claim in 2004. We currently estimate that on an ongoing basis, this program will reduce quarterly tax expense by approximately $0.8 to $1.0 million in the first quarter of 2005 and by approximately $5 million for the full year 2005.

Asset Quality

The ratio of nonperforming assets to net loans and leases and other real estate owned improved to 0.37% at December 31, 2004, compared to 0.42% at September 30, 2004 and 0.49% at December 31, 2003. The ratio is now at its lowest point in the past 27 quarters.

Net loan and lease charge-offs were $11.5 million or 0.21% of average loans on an annualized basis for the fourth quarter of 2004, and included a loss of $3.8 million on a letter of credit in which customer fraud was involved. This compares with $10.0 million or 0.19%, annualized for the third quarter of 2004 and $16.6 million or 0.34%, annualized for the fourth quarter of 2003. At December 31, 2004, the allowance for loan losses as a percentage of net loans and leases was 1.20%, a decrease from 1.35% at December 31, 2003 and 1.25% at September 30, 2004. In addition, at December 31, 2004 the allowance was 374.4% of nonperforming loans. The combined allowances for credit losses (allowance for loan losses plus the allowance for unfunded lending commitments) of $283.8 million were 1.25% of net loans and leases at year-end 2004.

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ZIONS BANCORPORATION

Press Release – Page 5

January 25, 2005

The provision for loan losses for the fourth quarter of 2004 was $13.2 million compared to $9.4 million provided during the third quarter of 2004 and $16.0 million for the fourth quarter of 2003. The declining trend in the provision since last year corresponds with the improvements in credit quality that have been experienced in the loan portfolio. Including the provision for unfunded lending commitments that is part of noninterest expense, the aggregate provisions for credit losses were $13.8 million for the fourth quarter of 2004 compared to $10.3 million for the third quarter.

Capital Management

During the fourth quarter of 2004, Zions repurchased 386,614 shares of its common stock at an average price of $64.66 per share. For the twelve months ended December 31, 2004, the Company repurchased 1,734,055 shares at an average per share price of $60.48. As of December 31, 2004, the existing repurchase program had been fully utilized.

Weighted average common and common-equivalent shares outstanding for the fourth quarter of 2004 were 91,342,328 compared to 90,956,674 for the third quarter of 2004 and 91,407,363 for the fourth quarter of 2003. The increase in shares from the third quarter of 2004 reflects the effects of a higher average stock price for the quarter, which increased common-equivalent shares.

The Company’s tangible common equity ratio was 6.80% at December 31, 2004, compared to 6.74% at September 30, 2004 and 6.53% at December 31, 2003.

Conference Call

Zions will host a conference call to discuss these fourth quarter results at 5:30 p.m. Eastern Time this afternoon (January 25, 2005). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-299-9630, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site atwww.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. Eastern Time on Tuesday, January 25 through midnight Eastern Time on Tuesday, February 1, by dialing 1-888-286-8010 and entering the passcode (79437795). The webcast of the conference call will also be archived and available for thirty days.

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ZIONS BANCORPORATION

Press Release – Page 6

January 25, 2005

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. Under local management teams and community identities, Zions operates approximately 400 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah and Washington. In addition, Zions is a national leader in SBA lending, public finance advisory services, agricultural finance and electronic bond trading. The Company is also included in the S&P 500 Index. Investor information and links to subsidiary banks can be accessed atwww.zionsbancorporation.com.

Forward-Looking Information

Statements in this news release that are based on other than historical data 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. These forward-looking statements are not guarantees of future performance, 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 news release. Factors that might cause such differences include, but are not limited to: changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. 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 7

FINANCIAL HIGHLIGHTS

(Unaudited)

	Three Months Ended December 31,					Years Ended December 31,
(In thousands, except per share and ratio data)	2004		2003		% Change	2004		2003		% Change
EARNINGS
Taxable-equivalent net interest income	$	318,464	$	283,866	12.19 %	$	1,195,755	$	1,118,416	6.92 %
Taxable-equivalent revenue		413,505		386,619	6.95 %		1,613,618		1,608,511	0.32 %
Net interest income		313,290		278,254	12.59 %		1,174,496		1,095,494	7.21 %
Noninterest income		95,041		102,753	(7.51)%		417,863		490,095	(14.74)%
Provision for loan losses		13,159		15,980	(17.65)%		44,067		69,940	(36.99)%
Noninterest expense		238,172		217,967	9.27 %		923,299		893,862	3.29 %
Impairment loss on goodwill		–		–	–		602		75,628	(99.20)%
Income before income taxes and minority interest		157,000		147,060	6.76 %		624,391		546,159	14.32 %
Income taxes		52,641		51,890	1.45 %		220,126		213,751	2.98 %
Minority interest		(622)		(440)	41.36 %		(1,722)		(7,185)	(76.03)%
Income from continuing operations		104,981		95,610	9.80 %		405,987		339,593	19.55 %
Loss on discontinued operations		–		–	–		–		(1,770)	100.00 %
Net income		104,981		95,610	9.80 %		405,987		337,823	20.18 %
PER COMMON SHARE
Net income (diluted)		1.15		1.05	9.52 %		4.47		3.72	20.16 %
Income from continuing operations (diluted)		1.15		1.05	9.52 %		4.47		3.74	19.52 %
Loss on discontinued operations (diluted)		–		–	–		–		(0.02)	100.00 %
Dividends		0.32		0.30	6.67 %		1.26		1.02	23.53 %
Book value							31.06		28.27	9.87 %
SELECTED RATIOS
Return on average assets		1.33 %		1.32 %			1.31 %		1.20 %
Return on average common equity		15.13 %		15.05 %			15.27 %		13.69 %
Efficiency ratio		57.60 %		56.38 %			57.22 %		55.65 %
Net interest margin		4.49 %		4.39 %			4.32 %		4.45 %

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 8

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

	Three Months Ended December 31,					Years Ended December 31,
(In thousands, except share and ratio data)	2004		2003		% Change	2004		2003		% Change
AVERAGE BALANCES
Total assets	$	31,501,478	$	28,761,614	9.53 %	$	30,936,148	$	28,203,544	9.69 %
Securities		5,255,624		4,858,930	8.16 %		5,200,306		4,447,008	16.94 %
Net loans and leases		21,866,761		19,539,294	11.91 %		21,046,372		19,324,633	8.91 %
Goodwill		642,646		654,151	(1.76)%		647,965		710,709	(8.83)%
Core deposit and other intangibles		58,956		72,499	(18.68)%		64,695		77,472	(16.49)%
Total deposits		23,144,944		20,782,912	11.37 %		22,104,368		20,253,236	9.14 %
Core deposits (1)		21,871,018		19,521,067	12.04 %		20,860,478		18,963,302	10.00 %
Minority interest		23,176		20,297	14.18 %		22,637		21,790	3.89 %
Shareholders’ equity		2,760,077		2,520,280	9.51 %		2,658,983		2,468,176	7.73 %
Weighted average common and common-equivalent shares outstanding		91,342,328		91,407,363	(0.07)%		90,881,570		90,734,500	0.16 %
AT PERIOD END
Total assets						$	31,469,834	$	28,558,238	10.20 %
Securities							5,121,215		4,818,017	6.29 %
Net loans and leases							22,627,121		19,920,361	13.59 %
Sold loans being serviced (2)							3,065,909		2,782,175	10.20 %
Allowance for loan losses							271,117		268,506	0.97 %
Allowance for unfunded lending commitments							12,682		12,215	3.82 %
Goodwill							642,645		654,152	(1.76)%
Core deposit and other intangibles							55,440		68,747	(19.36)%
Total deposits							23,292,261		20,896,695	11.46 %
Core deposits (1)							21,998,152		19,669,582	11.84 %
Minority interest							23,359		19,776	18.12 %
Shareholders’ equity							2,789,979		2,540,023	9.84 %
Common shares outstanding							89,829,947		89,840,638	(0.01)%
Average equity to average assets		8.76 %		8.76 %			8.60 %		8.75 %
Common dividend payout		27.48 %		28.24 %			28.23 %		27.20 %
Tangible common equity ratio							6.80 %		6.53 %
Nonperforming assets							84,286		97,964	(13.96)%
Accruing loans past due 90 days or more							16,375		24,231	(32.42)%
Nonperforming assets to net loans and leases and other real estate owned at period end							0.37 %		0.49 %

(1) Amount consists of total deposits excluding time deposits $100,000 and over.

(2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 9

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands, except per share and ratio data)	2004								2003
EARNINGS
Taxable-equivalent net interest income	$	318,464	$	300,047	$	289,630	$	287,614	$	283,866
Taxable-equivalent revenue		413,505		409,540		396,909		393,664		386,619
Net interest income		313,290		294,778		284,245		282,183		278,254
Noninterest income		95,041		109,493		107,279		106,050		102,753
Provision for loan losses		13,159		9,363		10,301		11,244		15,980
Noninterest expense		238,172		232,813		229,976		222,338		217,967
Impairment loss on goodwill		–		602		–		–		–
Income before income taxes and minority interest		157,000		161,493		151,247		154,651		147,060
Income taxes		52,641		58,140		54,631		54,714		51,890
Minority interest		(622)		858		(2,226)		268		(440)
Net income		104,981		102,495		98,842		99,669		95,610
PER COMMON SHARE
Net income (diluted)		1.15		1.13		1.09		1.10		1.05
Dividends		0.32		0.32		0.32		0.30		0.30
Book value		31.06		30.39		29.37		29.23		28.27
SELECTED RATIOS
Return on average assets		1.33 %		1.30 %		1.28 %		1.34 %		1.32 %
Return on average common equity		15.13 %		15.23 %		15.18 %		15.54 %		15.05 %
Efficiency ratio		57.60 %		56.85 %		57.94 %		56.48 %		56.38 %
Net interest margin		4.49 %		4.25 %		4.20 %		4.32 %		4.39 %

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 10

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands, except share and ratio data)	2004								2003
AVERAGE BALANCES
Total assets	$	31,501,478	$	31,368,578	$	31,040,639	$	29,822,933	$	28,761,614
Securities		5,255,624		5,232,188		5,224,576		5,087,878		4,858,930
Net loans and leases		21,866,761		21,220,481		20,969,643		20,117,675		19,539,294
Goodwill		642,646		645,462		650,160		653,678		654,151
Core deposit and other intangibles		58,956		62,923		67,031		69,953		72,499
Total deposits		23,144,944		22,729,540		21,640,762		20,883,922		20,782,912
Core deposits (1)		21,871,018		21,463,026		20,409,823		19,680,319		19,521,067
Minority interest		23,176		23,791		21,750		21,812		20,297
Shareholders’ equity		2,760,077		2,677,404		2,618,259		2,578,879		2,520,280
Weighted average common and common-equivalent shares outstanding		91,342,328		90,956,674		90,658,259		90,905,218		91,407,363
AT PERIOD END
Total assets	$	31,469,834	$	30,731,040	$	30,894,325	$	29,789,703	$	28,558,238
Securities		5,121,215		5,058,691		5,028,173		4,857,025		4,818,017
Net loans and leases		22,627,121		21,507,043		21,497,058		20,620,718		19,920,361
Sold loans being serviced (2)		3,065,909		3,152,924		2,643,927		2,707,128		2,782,175
Allowance for loan losses		271,117		269,413		271,554		271,226		268,506
Allowance for unfunded lending commitments		12,682		12,030		11,098		10,476		12,215
Goodwill		642,645		642,645		650,557		649,354		654,152
Core deposit and other intangibles		55,440		57,665		62,221		65,245		68,747
Total deposits		23,292,261		23,165,131		22,470,488		21,485,880		20,896,695
Core deposits (1)		21,998,152		21,883,851		21,198,263		20,283,721		19,669,582
Minority interest		23,359		24,481		21,721		23,847		19,776
Shareholders’ equity		2,789,979		2,724,261		2,636,451		2,621,965		2,540,023
Common shares outstanding		89,829,947		89,638,753		89,752,384		89,693,704		89,840,638
Average equity to average assets		8.76 %		8.54 %		8.43 %		8.65 %		8.76 %
Common dividend payout		27.48 %		28.10 %		29.12 %		28.26 %		28.24 %
Tangible common equity ratio		6.80 %		6.74 %		6.37 %		6.56 %		6.53 %
Nonperforming assets		84,286		91,105		106,750		109,487		97,964
Accruing loans past due 90 days or more		16,375		18,182		18,109		26,307		24,231
Nonperforming assets to net loans and leases and other real estate owned at period end		0.37 %		0.42 %		0.50 %		0.53 %		0.49 %

(1) Amount consists of total deposits excluding time deposits $100,000 and over.

(2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 11

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)	December 31, 2004		September 30, 2004		December 31, 2003
	(Unaudited)		(Unaudited)
ASSETS
Cash and due from banks	$	850,998	$	1,066,516	$	1,119,351
Money market investments:
Interest-bearing deposits		1,251		2,893		884
Federal funds sold		130,086		106,957		54,850
Security resell agreements		461,750		698,569		512,960
Investment securities:
Held to maturity, at cost (approximate market value $641,783, $640,462 and $0)		641,659		639,372		–
Available for sale, at market		4,189,486		3,986,046		4,437,793
Trading account, at market (includes $163,248, $120,825 and $211,943 transferred as collateral under repurchase agreements)		290,070		433,273		380,224
		5,121,215		5,058,691		4,818,017
Loans:
Loans held for sale		196,736		151,199		176,886
Loans, leases and other receivables		22,535,344		21,459,920		19,839,755
		22,732,080		21,611,119		20,016,641
Less:
Unearned income and fees, net of related costs		104,959		104,076		96,280
Allowance for loan losses		271,117		269,413		268,506
Net loans		22,356,004		21,237,630		19,651,855
Other noninterest bearing investments		665,198		666,214		584,377
Premises and equipment, net		409,210		404,226		407,825
Goodwill		642,645		642,645		654,152
Core deposit and other intangibles		55,440		57,665		68,747
Other real estate owned		11,877		14,222		18,596
Other assets		764,160		774,812		666,624
	$	31,469,834	$	30,731,040	$	28,558,238
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	6,821,528	$	6,656,856	$	5,882,929
Interest-bearing:
Savings and money market		13,349,347		13,446,840		12,044,499
Time under $100,000		1,387,784		1,388,649		1,507,628
Time $100,000 and over		1,294,109		1,281,280		1,227,113
Foreign		439,493		391,506		234,526
		23,292,261		23,165,131		20,896,695
Securities sold, not yet purchased		309,893		376,150		263,379
Federal funds purchased		1,841,092		1,069,430		1,370,619
Security repurchase agreements		683,984		723,000		841,170
Other liabilities		429,129		539,694		442,020
Commercial paper		165,447		168,344		126,144
Federal Home Loan Bank advances and other borrowings:
One year or less		15,949		18,106		215,354
Over one year		228,152		228,733		231,440
Long-term debt		1,690,589		1,693,710		1,611,618
Total liabilities		28,656,496		27,982,298		25,998,439
Minority interest		23,359		24,481		19,776
Shareholders’ equity:
Capital stock:
Preferred stock, without par value; authorized 3,000,000 shares; issued and outstanding, none		–		–		–
Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 89,829,947, 89,638,753 and 89,840,638 shares		972,065		965,166		985,904
Retained earnings		1,830,064		1,753,934		1,538,677
Accumulated other comprehensive income (loss)		(7,932)		9,240		19,041
Shares held in trust for deferred compensation, at cost		(4,218)		(4,079)		(3,599)
Total shareholders’ equity		2,789,979		2,724,261		2,540,023
	$	31,469,834	$	30,731,040	$	28,558,238

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 12

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended						Years Ended
(In thousands, except per share amounts)	December 31, 2004		September 30, 2004		December 31, 2003		December 31, 2004		December 31, 2003
Interest income:
Interest and fees on loans	$	336,994	$	315,590	$	289,555	$	1,243,399	$	1,178,767
Interest on loans held for sale		1,443		932		1,545		5,038		8,280
Lease financing		4,187		4,213		4,368		16,839		18,893
Interest on money market investments		4,826		4,994		2,701		16,355		13,011
Interest on securities:
Held to maturity – taxable		1,743		1,765		–		5,467		–
Held to maturity – nontaxable		5,972		6,000		–		18,742		–
Available for sale – taxable		45,799		39,784		35,000		160,621		126,592
Available for sale – nontaxable		865		897		7,286		9,062		29,205
Trading account		6,388		8,884		6,605		29,615		24,640
Total interest income		408,217		383,059		347,060		1,505,138		1,399,388
Interest expense:
Interest on savings and money market deposits		35,201		33,048		25,530		121,189		111,616
Interest on time and foreign deposits		17,352		15,692		15,245		61,177		71,875
Interest on borrowed funds		42,374		39,541		28,031		148,276		120,403
Total interest expense		94,927		88,281		68,806		330,642		303,894
Net interest income		313,290		294,778		278,254		1,174,496		1,095,494
Provision for loan losses		13,159		9,363		15,980		44,067		69,940
Net interest income after provision for loan losses		300,131		285,415		262,274		1,130,429		1,025,554
Noninterest income:
Service charges and fees on deposit accounts		32,023		33,486		32,580		131,683		129,846
Loan sales and servicing income		18,577		21,633		21,597		79,081		89,334
Other service charges, commissions and fees		22,025		23,474		20,930		90,928		84,666
Trust and investment management income		4,387		3,718		5,516		16,977		21,057
Income from securities conduit		8,503		9,104		8,145		35,185		29,421
Dividends and other investment income		8,015		7,157		7,672		31,812		28,508
Market making, trading and nonhedge derivative income		2,915		2,454		4,386		17,565		29,358
Equity securities gains (losses), net		(4,709)		4,277		(1,254)		(9,765)		63,807
Fixed income securities gains (losses), net		66		307		529		2,510		(17)
Other		3,239		3,883		2,652		21,887		14,115
Total noninterest income		95,041		109,493		102,753		417,863		490,095
Noninterest expense:
Salaries and employee benefits		138,062		133,609		122,725		531,303		491,563
Occupancy, net		18,511		18,734		17,987		73,716		70,986
Furniture and equipment		16,453		16,612		17,166		65,781		65,462
Legal and professional services		8,715		6,568		8,062		32,390		26,039
Postage and supplies		6,432		6,290		6,143		25,679		25,805
Advertising		4,930		4,789		5,103		19,747		18,212
Debt extinguishment cost		–		–		–		–		24,210
Impairment losses on long-lived assets		–		–		118		712		2,652
Restructuring charges		632		370		–		1,068		1,872
Amortization of core deposit and other intangibles		3,443		3,682		3,519		14,129		14,190
Provision for unfunded lending commitments		652		932		–		467		–
Other		40,342		41,227		37,144		158,307		152,871
Total noninterest expense		238,172		232,813		217,967		923,299		893,862
Impairment loss on goodwill		–		602		–		602		75,628
Income from continuing operations before income taxes and minority interest		157,000		161,493		147,060		624,391		546,159
Income taxes		52,641		58,140		51,890		220,126		213,751
Minority interest		(622)		858		(440)		(1,722)		(7,185)
Income from continuing operations		104,981		102,495		95,610		405,987		339,593

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 13

CONSOLIDATED STATEMENTS OF INCOME (Continued)

(Unaudited)

	Three Months Ended						Years Ended
(In thousands, except per share amounts)	December 31, 2004		September 30, 2004		December 31, 2003		December 31, 2004		December 31, 2003
Discontinued operations:
Loss from operations of discontinued subsidiaries	$	–	$	–	$	–	$	–	$	(466)
Loss on sale		–		–		–		–		(2,407)
Income tax benefit		–		–		–		–		(1,103)
Loss on discontinued operations		–		–		–		–		(1,770)
Net income	$	104,981	$	102,495	$	95,610	$	405,987	$	337,823
Weighted average shares outstanding during the period:
Basic shares		89,721		89,617		89,913		89,663		90,048
Diluted shares		91,342		90,957		91,407		90,882		90,734
Net income per common share:
Basic:
Income from continuing operations	$	1.17	$	1.14	$	1.06	$	4.53	$	3.77
Loss on discontinued operations		–		–		–		–		(0.02)
Net income	$	1.17	$	1.14	$	1.06	$	4.53	$	3.75
Diluted:
Income from continuing operations	$	1.15	$	1.13	$	1.05	$	4.47	$	3.74
Loss on discontinued operations		–		–		–		–		(0.02)
Net income	$	1.15	$	1.13	$	1.05	$	4.47	$	3.72

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 14

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

AND COMPREHENSIVE INCOME

(Unaudited)

	Year Ended December 31, 2004
					Accumulated Other Comprehensive Income (Loss)
(In thousands)	Common Stock		Retained Earnings		Net Unrealized Gains (Losses) on Investments, Retained Interests and Other		Net Unrealized Gains (Losses) on Derivative Instruments		Minimum Pension Liability		Subtotal		Shares Held in Trust for Deferred Compensation		Total Shareholders’ Equity
Balance, December 31, 2003	$	985,904	$	1,538,677	$	24,015	$	10,716	$	(15,690)	$	19,041	$	(3,599)	$	2,540,023
Comprehensive income:
Net income				405,987												405,987
Other comprehensive income, net of tax:
Net realized and unrealized holding losses during the year, net of income tax benefit of $1,817						(2,933)						(2,933)
Foreign currency translation						803						803
Reclassification for net realized gains recorded in operations, net of income tax expense of $1,307						(2,111)						(2,111)
Net unrealized losses on derivative instruments, net of reclassification to operations of $44,290 and income tax benefit of $12,574								(20,209)				(20,209)
Minimum pension liability, net of income tax benefit of $1,579										(2,523)		(2,523)
Other comprehensive loss						(4,241)		(20,209)		(2,523)		(26,973)				(26,973)
Total comprehensive income																379,014
Stock redeemed and retired		(104,881)														(104,881)
Stock options exercised, net of shares tendered and retired		91,042														91,042
Cash dividends – common, $1.26 per share				(114,600)												(114,600)
Cost of shares held in trust for deferred compensation														(619)		(619)
Balance, December 31, 2004	$	972,065	$	1,830,064	$	19,774	$	(9,493)	$	(18,213)	$	(7,932)	$	(4,218)	$	2,789,979
	Year Ended December 31, 2003
					Accumulated Other Comprehensive Income (Loss)
(In thousands)	Common Stock		Retained Earnings		Net Unrealized Gains (Losses) on Investments, Retained Interests and Other		Net Unrealized Gains (Losses) on Derivative Instruments		Minimum Pension Liability		Subtotal		Shares Held in Trust for Deferred Compensation		Total Shareholders’ Equity
Balance, December 31, 2002	$	1,034,888	$	1,292,741	$	44,151	$	25,420	$	(23,357)	$	46,214	$	–	$	2,373,843
Comprehensive income:
Net income				337,823												337,823
Other comprehensive income, net of tax:
Net realized and unrealized holding losses during the year, net of income tax benefit of $3,225						(5,207)						(5,207)
Reclassification for net realized gains recorded in operations, net of income tax expense of $9,248						(14,929)						(14,929)
Net unrealized losses on derivative instruments, net of reclassification to operations of $42,990 and income tax benefit of $9,312								(14,704)				(14,704)
Minimum pension liability, net of income tax expense of $4,965										7,667		7,667
Other comprehensive income (loss)						(20,136)		(14,704)		7,667		(27,173)				(27,173)
Total comprehensive income																310,650
Stock redeemed and retired		(106,844)														(106,844)
Stock options exercised, net of shares tendered and retired		57,860														57,860
Cash dividends – common, $1.02 per share				(91,887)												(91,887)
Cost of shares held in trust for deferred compensation														(3,599)		(3,599)
Balance, December 31, 2003	$	985,904	$	1,538,677	$	24,015	$	10,716	$	(15,690)	$	19,041	$	(3,599)	$	2,540,023

Total comprehensive income for the three months ended December 31, 2004 and 2003 was $87,809 and $87,623, respectively.

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 15

NONPERFORMING ASSETS

(Unaudited)

(In thousands)	December 31, 2004		September 30, 2004		June 30, 2004		March 31, 2004		December 31, 2003
Nonaccrual loans	$	71,763	$	76,361	$	92,597	$	91,698	$	78,170
Restructured loans		646		522		563		572		1,198
Other real estate owned		11,877		14,222		13,590		17,217		18,596
Total	$	84,286	$	91,105	$	106,750	$	109,487	$	97,964
% of net loans and leases* and other real estate owned		0.37 %		0.42 %		0.50 %		0.53 %		0.49 %
Accruing loans past due 90 days or more	$	16,375	$	18,182	$	18,109	$	26,307	$	24,231
% of net loans and leases*		0.07 %		0.08 %		0.08 %		0.13 %		0.12 %

*Includes loans held for sale.

ALLOWANCES FOR CREDIT LOSSES

(Unaudited)

	Three Months Ended
(In thousands)	December 31, 2004		September 30, 2004		June 30, 2004		March 31, 2004		December 31, 2003
Allowance for Loan Losses
Balance at beginning of period	$	269,413	$	271,554	$	271,226	$	268,506	$	281,311
Allowance of branches sold		–		(1,549)		–		(518)		–
Add:
Provision for losses		13,159		9,363		10,301		11,244		15,980
Deduct:
Loan and lease charge-offs		(20,024)		(13,617)		(14,530)		(11,483)		(22,436)
Recoveries		8,569		3,662		4,557		3,477		5,866
Net loan and lease charge-offs		(11,455)		(9,955)		(9,973)		(8,006)		(16,570)
Reclassification of allowance for unfunded lending commitments		–		–		–		–		(12,215)
Balance at end of period	$	271,117	$	269,413	$	271,554	$	271,226	$	268,506
Ratio of allowance for loan losses to net loans and leases outstanding at period end		1.20 %		1.25 %		1.26 %		1.32 %		1.35 %
Ratio of allowance for loan losses to nonperforming loans at period end		374.42 %		350.42 %		291.49 %		293.95 %		338.31 %
Allowance for Unfunded Lending Commitments
Balance at beginning of period	$	12,030	$	11,098	$	10,476	$	12,215	$	–
Reclassification of allowance for loan losses		–		–		–		–		12,215
Provision charged (credited) against earnings		652		932		622		(1,739)		–
Balance at end of period	$	12,682	$	12,030	$	11,098	$	10,476	$	12,215
Total Allowances for Credit Losses
Allowance for loan losses	$	271,117	$	269,413	$	271,554	$	271,226	$	268,506
Allowance for unfunded lending commitments		12,682		12,030		11,098		10,476		12,215
Total allowances for credit losses	$	283,799	$	281,443	$	282,652	$	281,702	$	280,721
Ratio of total allowances for credit losses to net loans and leases outstanding at period end		1.25 %		1.31 %		1.31 %		1.37 %		1.41 %

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 16

SOLD LOANS BEING SERVICED

(Unaudited)

		Three Months Ended
(In thousands)		December 31, 2004		September 30, 2004		June 30, 2004		March 31, 2004		December 31, 2003
Balance at beginning of period		$	3,152,924	$	2,643,927	$	2,707,128	$	2,782,175	$	2,894,638
New loans sold			83,175		703,809		118,018		90,770		107,373
Payments and other reductions			(170,190)		(194,812)		(181,219)		(165,817)		(219,836)
	��
Balance at end of period		$	3,065,909	$	3,152,924	$	2,643,927	$	2,707,128	$	2,782,175

LOAN BALANCES BY PORTFOLIO TYPE

(Unaudited)

(In millions)	December 31, 2004		September 30, 2004		June 30, 2004		March 31, 2004		December 31, 2003
Loans held for sale	$	197	$	151	$	141	$	185	$	177
Commercial lending:
Commercial and industrial		4,586		4,438		4,381		4,204		4,111
Leasing		370		374		381		363		377
Owner occupied		3,758		3,453		3,666		3,465		3,295
Total commercial lending		8,714		8,265		8,428		8,032		7,783
Commercial real estate:
Construction		3,536		3,289		3,062		2,916		2,867
Term		4,087		3,859		3,921		3,646		3,426
Total commercial real estate		7,623		7,148		6,983		6,562		6,293
Consumer:
Home equity credit line		1,104		1,026		965		892		838
1-4 family residential		4,234		4,118		4,170		4,057		3,874
Bankcard and other revolving plans		225		217		183		183		198
Other		532		573		647		697		749
Total consumer		6,095		5,934		5,965		5,829		5,659
Foreign loans		5		4		6		15		15
Other receivables		98		109		75		91		90
Total loans	$	22,732	$	21,611	$	21,598	$	20,714	$	20,017

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 17

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

	Three Months Ended December 31, 2004					Three Months Ended December 31, 2003
(In thousands)	Average Balance		Amount of Interest (1)		Average Rate	Average Balance		Amount of Interest (1)		Average Rate
ASSETS
Money market investments	$	1,125,352	$	4,826	1.71%	$	1,276,303	$	2,701	0.84%
Securities:
Held to maturity		636,886		10,931	6.83%		–		–
Available for sale		4,003,565		47,130	4.68%		4,112,031		46,209	4.46%
Trading account		615,173		6,388	4.13%		746,899		6,605	3.51%
Total securities		5,255,624		64,449	4.88%		4,858,930		52,814	4.31%
Loans:
Loans held for sale		165,377		1,443	3.47%		170,725		1,545	3.59%
Net loans and leases (2)		21,701,384		342,673	6.28%		19,368,569		295,612	6.06%
Total loans and leases		21,866,761		344,116	6.26%		19,539,294		297,157	6.03%
Total interest-earning assets		28,247,737		413,391	5.82%		25,674,527		352,672	5.45%
Cash and due from banks		1,099,638					1,007,376
Allowance for loan losses		(271,965)					(281,587)
Goodwill		642,646					654,151
Core deposit and other intangibles		58,956					72,499
Other assets		1,724,466					1,634,648
Total assets	$	31,501,478				$	28,761,614
LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	3,332,027		5,215	0.62%	$	3,153,567		4,735	0.60%
Money market super NOW		9,965,528		29,986	1.20%		8,947,633		20,795	0.92%
Time under $100,000		1,397,896		7,329	2.09%		1,537,516		7,466	1.93%
Time $100,000 and over		1,273,926		8,236	2.57%		1,261,845		7,295	2.29%
Foreign		397,344		1,787	1.79%		236,379		484	0.81%
Total interest-bearing deposits		16,366,721		52,553	1.28%		15,136,940		40,775	1.07%
Borrowed funds:
Securities sold, not yet purchased		523,512		5,014	3.81%		555,778		5,371	3.83%
Federal funds purchased and security repurchase agreements		2,480,174		10,869	1.74%		2,504,845		5,472	0.87%
Commercial paper		185,059		971	2.09%		119,526		359	1.19%
FHLB advances and other borrowings:
One year or less		10,538		48	1.81%		37,847		163	1.71%
Over one year		228,417		2,912	5.07%		234,335		2,972	5.03%
Long-term debt		1,692,124		22,560	5.30%		1,560,761		13,694	3.48%
Total borrowed funds		5,119,824		42,374	3.29%		5,013,092		28,031	2.22%
Total interest-bearing liabilities		21,486,545		94,927	1.76%		20,150,032		68,806	1.35%
Noninterest-bearing deposits		6,778,223					5,645,972
Other liabilities		453,457					425,033
Total liabilities		28,718,225					26,221,037
Minority interest		23,176					20,297
Total shareholders’ equity		2,760,077					2,520,280
Total liabilities and shareholders’ equity	$	31,501,478				$	28,761,614
Spread on average interest-bearing funds					4.06%					4.10%
Taxable-equivalent net interest income and net yield on interest-earning assets			$	318,464	4.49%			$	283,866	4.39%

(1) Taxable-equivalent rates used where applicable.

(2) 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 18

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

	Year Ended December 31, 2004					Year Ended December 31, 2003
(In thousands)	Average Balance		Amount of Interest (1)		Average Rate	Average Balance		Amount of Interest (1)		Average Rate
ASSETS
Money market investments	$	1,463,111	$	16,355	1.12%	$	1,342,663	$	13,011	0.97%
Securities:
Held to maturity		499,898		34,301	6.86%		–		–
Available for sale		3,968,043		174,563	4.40%		3,736,095		171,523	4.59%
Trading account		732,365		29,615	4.04%		710,913		24,640	3.47%
Total securities		5,200,306		238,479	4.59%		4,447,008		196,163	4.41%
Loans:
Loans held for sale		159,444		5,038	3.16%		219,631		8,280	3.77%
Net loans and leases (2)		20,886,928		1,266,525	6.06%		19,105,002		1,204,856	6.31%
Total loans and leases		21,046,372		1,271,563	6.04%		19,324,633		1,213,136	6.28%
Total interest-earning assets		27,709,789		1,526,397	5.51%		25,114,304		1,422,310	5.66%
Cash and due from banks		1,025,536					953,132
Allowance for loan losses		(271,828)					(281,679)
Goodwill		647,965					710,709
Core deposit and other intangibles		64,695					77,472
Other assets		1,759,991					1,629,606
Total assets	$	30,936,148				$	28,203,544
LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	3,337,072		20,613	0.62%	$	2,984,064		19,114	0.64%
Money market super NOW		9,479,970		100,576	1.06%		8,890,517		92,502	1.04%
Time under $100,000		1,436,631		27,524	1.92%		1,643,817		36,935	2.25%
Time $100,000 and over		1,243,890		29,251	2.35%		1,289,934		33,276	2.58%
Foreign		337,695		4,402	1.30%		185,981		1,664	0.89%
Total interest-bearing deposits		15,835,258		182,366	1.15%		14,994,313		183,491	1.22%
Borrowed funds:
Securities sold, not yet purchased		625,273		24,166	3.86%		537,929		20,441	3.80%
Federal funds purchased and security repurchase agreements		2,682,326		32,244	1.20%		2,604,802		25,473	0.98%
Commercial paper		200,406		3,028	1.51%		215,251		3,028	1.41%
FHLB advances and other borrowings:
One year or less		251,679		2,873	1.14%		144,516		1,912	1.32%
Over one year		229,855		11,670	5.08%		236,587		12,280	5.19%
Long-term debt		1,659,223		74,295	4.48%		1,277,378		57,269	4.48%
Total borrowed funds		5,648,762		148,276	2.62%		5,016,463		120,403	2.40%
Total interest-bearing liabilities		21,484,020		330,642	1.54%		20,010,776		303,894	1.52%
Noninterest-bearing deposits		6,269,110					5,258,923
Other liabilities		501,398					443,879
Total liabilities		28,254,528					25,713,578
Minority interest		22,637					21,790
Total shareholders’ equity		2,658,983					2,468,176
Total liabilities and shareholders’ equity	$	30,936,148				$	28,203,544
Spread on average interest-bearing funds					3.97%					4.14%
Taxable-equivalent net interest income and net yield on interest-earning assets			$	1,195,755	4.32%			$	1,118,416	4.45%

(1) Taxable-equivalent rates used where applicable.

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

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