EX-99.1 2 ex99_1.htm PRESS RELEASE DATED OCTOBER 19, 2006 Press Release Dated October 19, 2006
EXHIBIT 99.1
Zions Bancorporation Press Release
 
***FOR IMMEDIATE RELEASE***

For: ZIONS BANCORPORATION  Contact: Clark Hinckley
One South Main, Suite 1134  Tel: (801) 524-4787
Salt Lake City, Utah  October 19, 2006
Harris H. Simmons  
Chairman/Chief Executive Officer  


ZIONS BANCORPORATION REPORTS RECORD EARNINGS OF
$1.42 PER DILUTED SHARE FOR THIRD QUARTER 2006


SALT LAKE CITY, October 19, 2006 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported third quarter net income of $153.7 million, or $1.42 per diluted share. Net income and earnings per share increased 25.0% and 6.0%, respectively, over the $123.0 million, or $1.34 per diluted share for the third quarter of 2005. The return on average common equity was 13.41% for the third quarter of 2006, up from 13.20% for the second quarter of 2006.

All comparisons to the 2005 periods reflect the impact of the Company’s acquisition of Amegy Bancorporation, Inc., which was completed in December 2005.

“We are pleased to again report record quarterly earnings, driven by continued strong loan growth, a relatively stable net interest margin, continued excellent credit quality, and improvements in efficiency,” said Harris H. Simmons, chairman and chief executive officer. “On-balance-sheet loans and leases grew $1.0 billion during the quarter, a very solid performance, as economic activity remained relatively strong throughout most of the West and Southwest,” continued Simmons.

Year-to-date net income for 2006 increased 24.0% to $436.6 million or $4.04 per diluted share compared to $352.0 million, or $3.84 per diluted share for the same period of 2005. The return on
 
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ZIONS BANCORPORATION
Press Release – Page 2
October 19, 2006
 
average common equity for the first nine months of 2006 was 13.18% compared to 16.27% for the first nine months of 2005.
 
Strong Loan Growth
On-balance-sheet net loans and leases were $33.7 billion at September 30, 2006, an increase of approximately $1.0 billion or 12.5% annualized from $32.7 billion at June 30, 2006, and an increase of 40.9% from $23.9 billion at September 30, 2005. Loan growth during the third quarter was in the commercial and commercial real estate categories and was widely diversified geographically.

Deposit Growth
Total deposits at September 30, 2006 increased $387 million to $33.6 billion, an annualized increase of 4.7% from $33.3 billion at June 30, 2006, and increased 32.4% over the balances reported one year ago. Noninterest-bearing demand deposits decreased $414 million during the quarter to $9.8 billion compared to $10.2 billion at June 30, 2006. However, core deposits increased $176 million primarily due to increases in foreign sweep accounts and time deposits under $100,000.

Net Interest Income
Taxable-equivalent net interest income for the quarter was $452.6 million compared to $442.3 million for the second quarter of 2006 and $345.8 million for the third quarter of 2005. For the third quarter of 2006, the net interest margin was 4.58% compared to 4.64% for the second quarter of 2006 and 4.59% for the third quarter of 2005. Net interest income for the third quarter of 2006 increased $10.2 million or 9.3% annualized compared to the second quarter of 2006.

Noninterest Income
For the third quarter of 2006, noninterest income increased to $145.3 million compared with $137.5 million for the second quarter of 2006 and $110.5 million for the third quarter of 2005. Net equity securities gains increased during the quarter primarily due to $12.9 million of net gains on venture capital investments. Net of related minority interest of $9.5 million, income taxes and other expenses, venture
 
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ZIONS BANCORPORATION
Press Release – Page 3
October 19, 2006
 
capital investments increased net income by $1.7 million. Loan sales and servicing income decreased primarily because of a pretax impairment charge of $4.1 million on retained interests from certain previous small business loan securitizations; this impairment resulted primarily from increased prepayment speeds.

Noninterest Expense
Noninterest expense for the third quarter of 2006 was $330.0 million compared to $333.0 million for the second quarter of 2006 and $247.7 million for the third quarter of 2005. Salaries and employee benefits increased $4.9 million during the third quarter. The increase was due primarily to increased staffing for sales and business development and to the redeployment of technical staff from the Amegy conversion to other systems conversions whose salaries had previously been charged to merger related expense. Also included in salaries and employee benefits is $4.8 million of stock option compensation expense, up from $4.1 million in the second quarter of 2006.

Merger related expense decreased $6.4 million to $2.5 million for the third quarter of 2006 compared to $8.9 million for the second quarter of 2006, reflecting the completion of certain systems-related conversions for the Amegy acquisition.

The efficiency ratio for the third quarter of 2006 was 55.2% compared to 57.4% for the second quarter of 2006 and 54.3% for the third quarter of 2005. However, the efficiency ratio this quarter was favorably impacted by the inclusion in revenue of the full amount of venture capital gains noted above; adjusted to exclude from revenue the related minority interest, the efficiency ratio would be 56.1%.

Asset Quality
Nonperforming assets were $74.8 million at September 30, 2006 compared to $73.5 million at June 30, 2006 and $83.1 million at September 30, 2005. The ratio of nonperforming assets to net loans and leases and other real estate owned was 0.22% at both September 30, 2006 and June 30, 2006, and down from 0.35% at September 30, 2005.
 
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ZIONS BANCORPORATION
Press Release – Page 4
October 19, 2006

For the third quarter of 2006, net loan and lease charge-offs were $6.5 million or 0.08% annualized of average loans. This compares with $9.8 million or 0.12% annualized for the second quarter of 2006 and $6.3 million or 0.10% annualized for the third quarter of 2005. The provision for loan losses was $14.4 million for the third quarter of 2006 compared to $17.0 million for the second quarter of 2006 and $12.1 million for the third quarter of 2005. The provision in excess of net charge-offs for the quarter was mainly the result of the Company’s strong loan growth. The combined provisions for loan losses and unfunded lending commitments were $15.4 million for the third quarter of 2006, $16.8 million for the second quarter of 2006, and $12.5 million for the third quarter of 2005.

At September 30, 2006, the allowance for loan losses as a percentage of net loans and leases was 1.06% compared to 1.07% at June 30, 2006 and 1.20% at September 30, 2005. At September 30, 2006, the allowance was 549.7% of nonperforming loans. The combined allowances for credit losses (allowance for loan losses plus the allowance for unfunded lending commitments) were $375.0 million or 1.11% of net loans and leases at September 30, 2006 and $303.1 million or 1.27% at September 30, 2005.

Capital Management
The Company’s tangible common equity ratio was 5.92% at September 30, 2006 compared to 5.54% at June 30, 2006 and 7.06% at September 30, 2005. During the third quarter, retained earnings increased by $115 million and accumulated other comprehensive loss decreased by $59 million, while total assets increased by $636 million.

Weighted average common and common-equivalent shares outstanding for the third quarter of 2006 were 108,061,423 compared to 107,883,374 for the second quarter of 2006 and 91,605,279 for the third quarter of 2005. Common shares outstanding at September 30, 2006 were 106,804,606 compared to 106,611,731 at June 30, 2006 and 90,067,016 at September 30, 2005. The increase year over year results primarily from the issuance of 14,351,115 common shares for the Amegy acquisition.

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ZIONS BANCORPORATION
Press Release – Page 5
October 19, 2006

Acquisition
On September 11, 2006, the Company announced that it had signed a definitive agreement to acquire The Stockmen’s Bancorp, Inc., headquartered in Kingman, Arizona, with approximately $1.2 billion of total assets and 43 offices in Arizona and central California. The merger is subject to approval by regulators and by Stockmen’s shareholders. Upon completion of the transaction, which is expected in the first quarter of 2007, Stockmen’s parent company will merge into Zions and the banking subsidiary will merge into Zions’ subsidiary, National Bank of Arizona.

Conference Call
Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 19, 2006). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-299-7089 and entering the passcode 86060861, or via on-demand webcast. 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 Thursday, October 19, through midnight ET on Thursday, October 26, by dialing 1-888-286-8010 and entering the passcode 29236559. 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 over 450 offices and approximately 600 ATMs in ten 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.
 
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ZIONS BANCORPORATION
Press Release – Page 6
October 19, 2006

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: the Company’s ability
to successfully execute its business plans and achieve its objectives; 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 challenges and expanding product and pricing 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.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2005 Annual Report on Form 10-K of Zions Bancorporation filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site ( http://www.sec.gov ).

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
  
Nine Months Ended
(In thousands, except per share and ratio data)
September 30,
  
September 30,
 
2006
  
2005
  
% Change
  
2006
  
2005
  
% Change
EARNINGS
                                         
Taxable-equivalent net interest income
$
452,606
    
$
345,826
    
30.88
%
  
$
1,323,691
    
$
1,002,034
    
32.10
%
Taxable-equivalent revenue
  
597,935
     
456,321
   
31.03
%
    
1,735,019
     
1,321,360
   
31.31
%
Net interest income
  
446,511
     
340,652
   
31.08
%
    
1,305,685
     
986,531
   
32.35
%
Noninterest income
  
145,329
     
110,495
   
31.53
%
    
411,328
     
319,326
   
28.81
%
Provision for loan losses
  
14,363
     
12,107
   
18.63
%
    
45,897
     
32,907
   
39.47
%
Noninterest expense
  
330,028
     
247,718
   
33.23
%
    
987,511
     
729,002
   
35.46
%
Income before income taxes and minority interest
  
247,449
     
191,322
   
29.34
%
    
683,605
     
543,948
   
25.67
%
Income taxes
  
83,790
     
68,200
   
22.86
%
    
237,869
     
194,279
   
22.44
%
Minority interest
 
9,985
     
152
   
6,469.08
%
    
9,119
     
(2,345
)
  
488.87
%
Net income
  
153,674
     
122,970
   
24.97
%
    
436,617
     
352,014
   
24.03
%
                                           
PER COMMON SHARE
                                         
Net income (diluted)
  
1.42
     
1.34
   
5.97
%
    
4.04
     
3.84
   
5.21
%
Dividends
  
0.36
     
0.36
   
-
     
1.08
     
1.08
   
-
 
Book value
                        
43.47
     
33.30
   
30.54
%
                                           
SELECTED RATIOS
                                          
Return on average assets
  
1.36
%
    
1.47
%
          
1.34
%
    
1.45
%
      
Return on average common equity
  
13.41
%
    
16.41
%
          
13.18
%
    
16.27
%
      
Efficiency ratio
  
55.19
%
    
54.29
%
          
56.92
%
    
55.17
%
      
Net interest margin
  
4.58
%
    
4.59
%
          
4.64
%
    
4.57
%
      
 
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 8
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)


 
Three Months Ended
  
Nine Months Ended
(In thousands, except share and ratio data)
September 30,
  
September 30,
 
2006
  
2005
  
% Change
  
2006
  
2005
  
% Change
AVERAGE BALANCES
                                          
Total assets
$
44,680,382
    
$
33,218,477
    
34.50
%
  
$
43,710,533
    
$
32,531,725
    
34.36
%
Securities
  
5,605,249
     
4,993,735
   
12.25
%
    
5,849,953
     
5,091,701
   
14.89
%
Net loans and leases
  
33,105,716
     
24,009,024
   
37.89
%
    
31,834,510
     
23,343,316
   
36.38
%
Goodwill
  
1,881,708
     
638,957
   
194.50
%
    
1,884,462
     
640,151
   
194.38
%
Core deposit and other intangibles
  
175,259
     
52,276
   
235.26
%
    
185,619
     
53,964
   
243.97
%
Total deposits
  
32,964,029
     
24,807,387
   
32.88
%
    
32,390,954
     
23,945,430
   
35.27
%
Core deposits (1)
  
29,427,975
     
23,029,389
   
27.78
%
    
29,394,957
     
22,376,328
   
31.37
%
Minority interest
  
37,854
     
26,220
   
44.37
%
    
31,556
     
25,270
   
24.88
%
Shareholders' equity
  
4,545,990
     
2,972,615
   
52.93
%
    
4,428,182
     
2,892,162
   
53.11
%
                                           
Weighted average common and common-
                                          
equivalent shares outstanding
   108,061,423       91,605,279     17.96 %     107,949,894       91,606,315     17.84
%
                                           
AT PERIOD END
                                          
Total assets
                      
$
45,777,747
    
$
33,422,701
    
36.97
%
Securities
                        
5,817,571
     
4,992,339
   
16.53
%
Net loans and leases
                        
33,706,110
     
23,930,017
   
40.85
%
Sold loans being serviced (2)
                        
2,796,644
     
3,561,818
   
(21.48
)%
Allowance for loan losses
                        
356,342
     
287,237
   
24.06
%
Allowance for unfunded lending commitments
                        
18,637
     
15,830
   
17.73
%
Goodwill
                       
1,884,328
     
639,120
   
194.83
%
Core deposit and other intangibles
                        
168,135
     
47,670
   
252.71
%
Total deposits
                        
33,640,991
     
25,399,741
   
32.45
%
Core deposits (1)
                        
30,027,827
     
23,507,531
   
27.74
%
Minority interest
                        
41,158
     
26,719
   
54.04
%
Shareholders' equity
                        
4,643,166
     
2,999,173
   
54.81
%
                                           
Common shares outstanding
                        
106,804,606
     
90,067,016
   
18.58
%
                                           
Average equity to average assets
  
10.17
%
    
8.95
%
          
10.13
%
    
8.89
%
      
Common dividend payout
 
25.00
%
    
26.47
%
          
26.31
%
    
27.74
%
      
Tangible common equity ratio
                        
5.92
%
    
7.06
%
      
Nonperforming assets
                        
74,815
     
83,101
   
(9.97
)%
Accruing loans past due 90 days or more
                        
20,407
     
15,836
   
28.86
%
Nonperforming assets to net loans and leases
                                          
and other real estate owned at period end
                         0.22 %     0.35 %      
 
 (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
(In thousands, except per share and ratio data)
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2005
EARNINGS
                                     
Taxable-equivalent net interest income
$
452,606
    
$
442,261
    
$
428,824
    
$
380,316
    
$
345,826
  
Taxable-equivalent revenue
  
597,935
     
579,772
     
557,312
     
497,943
     
456,321
 
Net interest income
  
446,511
     
436,327
     
422,847
     
374,819
     
340,652
 
Noninterest income
  
145,329
     
137,511
     
128,488
     
117,627
     
110,495
 
Provision for loan losses
  
14,363
     
17,022
     
14,512
     
10,116
     
12,107
 
Noninterest expense
  
330,028
     
333,028
     
324,455
     
283,789
     
247,718
 
Impairment loss on goodwill
  
-
     
-
     
-
     
602
     
-
 
Income before income taxes and minority interest
  
247,449
     
223,788
     
212,368
     
197,939
     
191,322
 
Income taxes
  
83,790
     
78,821
     
75,258
     
69,139
     
68,200
 
Minority interest
 
9,985
     
(343
)
    
(523
)
    
693
     
152
 
Net income
  
153,674
     
145,310
     
137,633
     
128,107
     
122,970
 
                                       
PER COMMON SHARE
                                     
Net income (diluted)
  
1.42
     
1.35
     
1.28
     
1.32
     
1.34
 
Dividends
  
0.36
     
0.36
     
0.36
     
0.36
     
0.36
 
Book value
  
43.47
     
41.72
     
40.95
     
40.30
     
33.30
 
                                       
SELECTED RATIOS
                                      
Return on average assets
  
1.36
%
    
1.33
%
    
1.31
%
    
1.38
%
    
1.47
%
Return on average common equity
  
13.41
%
    
13.20
%
    
12.92
%
    
14.82
%
    
16.41
%
Efficiency ratio
  
55.19
%
    
57.44
%
    
58.22
%
    
56.99
%
    
54.29
%
Net interest margin
  
4.58
%
    
4.64
%
    
4.69
%
    
4.62
%
    
4.59
%
 
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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)


 
Three Months Ended 
(In thousands, except share and ratio data)
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2005
AVERAGE BALANCES
                                      
Total assets
$
44,680,382
    
$
43,782,622
    
$
42,646,242
    
$
36,780,719
    
$
33,218,477
  
Securities
  
5,605,249
     
5,876,065
     
6,073,692
     
5,352,093
     
4,993,735
 
Net loans and leases
  
33,105,716
     
31,900,053
     
30,468,784
     
25,982,873
     
24,009,024
 
Goodwill
  
1,881,708
     
1,884,192
     
1,887,551
     
1,060,381
     
638,957
 
Core deposit and other intangibles
  
175,259
     
185,281
     
196,551
     
101,593
     
52,276
 
Total deposits
  
32,964,029
     
32,175,202
     
32,023,293
     
27,605,309
     
24,807,387
 
Core deposits (1)
  
29,427,975
     
29,303,520
     
29,453,658
     
25,467,323
     
23,029,389
 
Minority interest
  
37,854
     
28,486
     
28,223
     
27,079
     
26,220
 
Shareholders' equity
  
4,545,990
     
4,414,775
     
4,321,311
     
3,428,605
     
2,972,615
 
                                       
Weighted average common and common-
                                      
equivalent shares outstanding
  
108,061,423
     
107,883,374
     
107,724,724
     
96,963,446
     
91,605,279
 
                                       
AT PERIOD END
                                      
Total assets
$
45,777,747
    
$
45,142,086
    
$
43,318,029
    
$
42,779,639
    
$
33,422,701
  
Securities
  
5,817,571
     
5,797,079
     
5,984,115
     
6,057,212
     
4,992,339
 
Net loans and leases
  
33,706,110
     
32,682,335
     
31,140,326
     
30,126,936
     
23,930,017
 
Sold loans being serviced (2)
  
2,796,644
     
3,003,101
     
3,183,992
     
3,382,603
     
3,561,818
 
Allowance for loan losses
  
356,342
     
348,475
     
341,261
     
338,399
     
287,237
 
Allowance for unfunded lending commitments
  
18,637
     
17,592
     
17,841
     
18,120
     
15,830
 
Goodwill
 
1,884,328
     
1,881,256
     
1,884,225
     
1,887,588
     
639,120
 
Core deposit and other intangibles
  
168,135
     
177,692
     
188,384
     
199,166
     
47,670
 
Total deposits
  
33,640,991
     
33,254,210
     
32,872,708
     
32,642,408
     
25,399,741
 
Core deposits (1)
  
30,027,827
     
29,851,896
     
30,179,291
     
30,127,812
     
23,507,531
 
Minority interest
  
41,158
     
28,619
     
28,895
     
27,551
     
26,719
 
Shareholders' equity
  
4,643,166
     
4,447,330
     
4,343,816
     
4,237,264
     
2,999,173
 
                                       
Common shares outstanding
  
106,804,606
     
106,611,731
     
106,070,045
     
105,147,562
     
90,067,016
 
                                       
Average equity to average assets
  
10.17
%
    
10.08
%
    
10.13
%
    
9.32
%
    
8.95
%
Common dividend payout
 
25.00
%
    
26.37
%
    
27.71
%
    
25.50
%
    
26.47
%
Tangible common equity ratio
  
5.92
%
    
5.54
%
    
5.51
%
    
5.28
%
    
7.06
%
Nonperforming assets
  
74,815
     
73,475
     
96,556
     
89,063
     
83,101
 
Accruing loans past due 90 days or more
  
20,407
     
29,434
     
10,299
     
17,153
     
15,836
 
Nonperforming assets to net loans and leases
                                      
and other real estate owned at period end
  
0.22
%
    
0.22
%
    
0.31
%
    
0.30
%
    
0.35
%
 
 (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.
 
- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11
CONSOLIDATED BALANCE SHEETS
 
 
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
(In thousands, except share amounts)
2006
  
2006
  
2006
  
2005
  
2005
 
  
(Unaudited)
      
(Unaudited)
 
    
(Unaudited)
 
            
(Unaudited)
 
ASSETS
                                      
Cash and due from banks
$
1,616,910
    
$
1,773,829
    
$
1,584,857
    
$
1,706,590
    
$
1,109,202
  
Money market investments:
                                      
Interest-bearing deposits
  
39,882
     
87,512
     
51,942
     
22,179
     
13,350
 
Federal funds sold
  
72,036
     
262,959
     
178,406
     
414,281
     
460,167
 
Security resell agreements
  
272,643
     
225,160
     
238,762
     
230,282
     
528,763
 
Investment securities:
                                      
Held to maturity, at cost (approximate market value $655,170,
                                      
$620,786, $633,784, $642,258 and $641,737)
  
662,547
     
639,593
     
644,212
     
649,791
     
642,687
 
Available for sale, at market
  
5,062,409
     
5,086,840
     
5,187,979
     
5,305,859
     
3,997,593
 
Trading account, at market (includes $60,331, $50,684,
                                      
$34,340, $43,444 and $141,535 transferred as collateral
                                      
under repurchase agreements)
  
92,615
     
70,646
     
151,924
     
101,562
     
352,059
 
   
5,817,571
     
5,797,079
     
5,984,115
     
6,057,212
     
4,992,339
 
Loans:
                                      
Loans held for sale
 
268,305
     
248,948
     
311,655
     
256,236
     
213,223
 
Loans and leases
  
33,583,499
     
32,576,017
     
30,958,190
     
29,996,022
     
23,823,715
 
   
33,851,804
     
32,824,965
     
31,269,845
     
30,252,258
     
24,036,938
 
Less:
                                      
Unearned income and fees, net of related costs
  
145,694
     
142,630
     
129,519
     
125,322
     
106,921
 
Allowance for loan losses
  
356,342
     
348,475
     
341,261
     
338,399
     
287,237
 
Loans and leases, net of allowance
  
33,349,768
     
32,333,860
     
30,799,065
     
29,788,537
     
23,642,780
 
                                       
Other noninterest-bearing investments
  
1,005,989
     
993,379
     
971,569
     
938,515
     
708,368
 
Premises and equipment, net
  
587,807
     
574,154
     
565,327
     
564,745
     
410,800
 
Goodwill
  
1,884,328
     
1,881,256
     
1,884,225
     
1,887,588
     
639,120
 
Core deposit and other intangibles
  
168,135
     
177,692
     
188,384
     
199,166
     
47,670
 
Other real estate owned
  
9,986
     
16,024
     
24,964
     
19,966
     
15,176
 
Other assets
  
952,692
     
1,019,182
     
846,413
     
950,578
     
854,966
 
 
$
45,777,747
    
$
45,142,086
    
$
43,318,029
    
$
42,779,639
    
$
33,422,701
  
                                       
LIABILITIES AND SHAREHOLDERS' EQUITY
                                      
Deposits:
                                      
Noninterest-bearing demand
$
9,750,064
    
$
10,163,834
    
$
9,953,003
    
$
9,953,833
    
$
7,725,179
  
Interest-bearing:
                                      
Savings and money market
  
15,824,048
     
15,814,128
     
16,354,901
     
16,055,754
     
13,442,012
 
Time under $100,000
  
2,154,894
     
2,030,717
     
1,959,351
     
1,938,789
     
1,554,064
 
Time $100,000 and over
  
3,613,164
     
3,402,314
     
2,693,417
     
2,514,596
     
1,892,210
 
Foreign
  
2,298,821
     
1,843,217
     
1,912,036
     
2,179,436
     
786,276
 
   
33,640,991
     
33,254,210
     
32,872,708
     
32,642,408
     
25,399,741
 
                                       
Securities sold, not yet purchased
  
53,802
     
27,388
     
55,577
     
64,654
     
331,891
 
Federal funds purchased
  
2,286,561
     
1,397,694
     
1,484,049
     
1,255,662
     
1,262,646
 
Security repurchase agreements
  
1,108,771
     
1,169,296
     
1,096,420
     
1,027,658
     
756,631
 
Other liabilities
  
657,657
     
789,222
     
677,495
     
592,599
     
571,583
 
Commercial paper
  
265,769
     
245,126
     
153,286
     
167,188
     
149,089
 
Federal Home Loan Bank advances and other borrowings:
                                      
One year or less
  
313,259
     
1,216,848
     
4,264
     
18,801
     
13,063
 
Over one year
  
132,854
     
133,450
     
134,043
     
234,488
     
226,482
 
Long-term debt
  
2,633,759
     
2,432,903
     
2,467,476
     
2,511,366
     
1,685,683
 
Total liabilities
  
41,093,423
     
40,666,137
     
38,945,318
     
38,514,824
     
30,396,809
 
                                       
Minority interest
  
41,158
     
28,619
     
28,895
     
27,551
     
26,719
 
                                       
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 106,804,606, 106,611,731,
                                      
106,070,045, 105,147,562 and 90,067,016 shares
  
2,240,458
     
2,218,711
     
2,197,245
     
2,156,732
     
971,002
 
Retained earnings
  
2,501,625
     
2,386,369
     
2,279,383
     
2,179,885
     
2,084,439
 
Accumulated other comprehensive loss
  
(89,292
)
    
(148,327
)
    
(123,099
)
    
(83,043
)
    
(52,088
)
Deferred compensation
  
(9,625
)
    
(9,423
)
    
(9,713
)
    
(16,310
)
    
(4,180
)
Total shareholders' equity
  
4,643,166
     
4,447,330
     
4,343,816
     
4,237,264
     
2,999,173
 
 
$
45,777,747
    
$
45,142,086
    
$
43,318,029
    
$
42,779,639
    
$
33,422,701
  
 
- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


 
Three Months Ended
(In thousands, except per share amounts)
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2006
  
2006
  
2005
  
2005
Interest income:
                                      
Interest and fees on loans
$
638,610
    
$
591,139
    
$
542,784
    
$
458,429
    
$
406,319
  
Interest on loans held for sale
  
4,275
     
4,055
     
4,046
     
3,131
     
2,462
 
Lease financing
  
4,690
     
4,496
     
4,130
     
4,010
     
3,980
 
Interest on money market investments
  
6,431
     
5,910
     
5,847
     
13,280
     
7,723
 
Interest on securities:
                                      
Held to maturity – taxable
  
2,217
     
2,209
     
2,215
     
1,866
     
1,827
 
Held to maturity – nontaxable
  
5,732
     
5,683
     
5,531
     
5,948
     
6,066
 
Available for sale – taxable
  
66,078
     
68,995
     
69,104
     
56,267
     
49,339
 
Available for sale – nontaxable
  
2,089
     
2,119
     
2,339
     
1,433
     
808
 
Trading account
  
1,621
     
1,995
     
2,074
     
4,038
     
4,753
 
Total interest income
  
731,743
     
686,601
     
638,070
     
548,402
     
483,277
 
                                       
Interest expense:
                                      
Interest on savings and money market deposits
  
109,410
     
97,131
     
86,623
     
71,093
     
59,539
 
Interest on time and foreign deposits
  
86,635
     
67,424
     
59,485
     
43,740
     
31,536
 
Interest on short-term borrowings
  
46,968
     
43,475
     
27,978
     
24,155
     
23,213
 
Interest on long-term debt
  
42,219
     
42,244
     
41,137
     
34,595
     
28,337
 
Total interest expense
  
285,232
     
250,274
     
215,223
     
173,583
     
142,625
 
                                       
Net interest income
  
446,511
     
436,327
     
422,847
     
374,819
     
340,652
 
Provision for loan losses
  
14,363
     
17,022
     
14,512
     
10,116
     
12,107
 
Net interest income after provision for loan losses
  
432,148
     
419,305
     
408,335
     
364,703
     
328,545
 
                                       
Noninterest income:
                                      
Service charges and fees on deposit accounts
  
41,991
     
41,414
     
40,038
     
34,375
     
32,233
 
Loan sales and servicing income
  
10,972
     
15,058
     
15,468
     
21,315
     
21,649
 
Other service charges, commissions and fees
  
44,711
     
42,779
     
39,931
     
32,973
     
28,877
 
Trust and investment management income
  
5,549
     
5,312
     
4,696
     
4,489
     
3,923
 
Income from securities conduit
  
7,741
     
8,492
     
8,406
     
8,977
     
8,553
 
Dividends and other investment income
  
10,403
     
9,946
     
9,209
     
7,642
     
6,954
 
Market making, trading and nonhedge derivative income
  
3,641
     
5,444
     
4,425
     
1,352
     
4,069
 
Equity securities gains (losses), net
  
13,180
     
(1,764
)
    
550
     
1,764
     
1,089
 
Fixed income securities gains, net
  
1,563
     
5,156
     
251
     
423
     
276
 
Other
 
5,578
     
5,674
     
5,514
     
4,317
     
2,872
 
Total noninterest income
  
145,329
     
137,511
     
128,488
     
117,627
     
110,495
 
                                       
Noninterest expense:
                                      
Salaries and employee benefits
  
190,554
     
185,643
     
185,855
     
154,942
     
142,590
 
Occupancy, net
  
25,807
     
24,549
     
24,081
     
21,388
     
19,048
 
Furniture and equipment
 
20,361
     
22,737
     
23,004
     
19,032
     
16,979
 
Legal and professional services
  
11,386
     
9,005
     
8,509
     
10,012
     
8,575
 
Postage and supplies
  
8,313
     
8,646
     
7,715
     
7,043
     
6,510
 
Advertising
  
6,566
     
6,814
     
5,985
     
6,061
     
5,875
 
Impairment losses on long-lived assets
  
-
     
-
     
1,304
     
2,500
     
-
 
Restructuring charges
  
-
     
-
     
17
     
2,351
     
-
 
Merger related expense
  
2,549
     
8,906
     
6,807
     
3,103
     
207
 
Amortization of core deposit and other intangibles
  
10,716
     
10,692
     
10,693
     
6,092
     
3,684
 
Provision for unfunded lending commitments
  
1,045
     
(249
)
    
(279
)
    
277
     
435
 
Other
 
52,731
     
56,285
     
50,764
     
50,988
     
43,815
 
Total noninterest expense
  
330,028
     
333,028
     
324,455
     
283,789
     
247,718
 
                                       
Impairment loss on goodwill
  
-
     
-
     
-
     
602
     
-
 
                                       
Income before income taxes and minority interest
  
247,449
     
223,788
     
212,368
     
197,939
     
191,322
 
Income taxes
  
83,790
     
78,821
     
75,258
     
69,139
     
68,200
 
Minority interest
  
9,985
     
(343
)
    
(523
)
    
693
     
152
 
Net income
$
153,674
    
$
145,310
    
$
137,633
    
$
128,107
    
$
122,970
  
                                       
Weighted average shares outstanding during the period:
                                     
Basic shares
  
106,285
     
106,001
     
105,472
     
95,002
     
89,980
 
Diluted shares
  
108,061
     
107,883
     
107,725
     
96,963
     
91,605
 
                                       
Net income per common share:
                                      
Basic
$
1.45
    
$
1.37
    
$
1.30
    
$
1.35
    
$
1.37
  
Diluted
  
1.42
     
1.35
     
1.28
     
1.32
     
1.34
 
 
- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(Unaudited)
 
 
Nine Months Ended
(In thousands, except per share amounts)
September 30,
 
2006
  
2005
Interest income:
              
Interest and fees on loans
$
1,772,533
    
$
1,137,487
  
Interest on loans held for sale
  
12,376
     
6,683
 
Lease financing
  
13,316
     
12,069
 
Interest on money market investments
  
18,188
     
18,402
 
Interest on securities:
              
Held to maturity – taxable
  
6,641
     
5,465
 
Held to maturity – nontaxable
  
16,946
     
18,057
 
Available for sale – taxable
  
204,177
     
145,361
 
Available for sale – nontaxable
  
6,547
     
2,498
 
Trading account
  
5,690
     
15,832
 
Total interest income
  
2,056,414
     
1,361,854
 
               
Interest expense:
              
Interest on savings and money market deposits
  
293,164
     
149,511
 
Interest on time and foreign deposits
  
213,544
     
75,980
 
Interest on short-term borrowings
  
118,421
     
67,994
 
Interest on long-term debt
  
125,600
     
81,838
 
Total interest expense
  
750,729
     
375,323
 
               
Net interest income
  
1,305,685
     
986,531
 
Provision for loan losses
  
45,897
     
32,907
 
Net interest income after provision for loan losses
  
1,259,788
     
953,624
 
               
Noninterest income:
              
Service charges and fees on deposit accounts
  
123,443
     
94,421
 
Loan sales and servicing income
  
41,861
     
56,507
 
Other service charges, commissions and fees
  
127,058
     
83,662
 
Trust and investment management income
  
15,557
     
11,994
 
Income from securities conduit
  
24,639
     
25,989
 
Dividends and other investment income
  
29,558
     
22,398
 
Market making, trading and nonhedge derivative income
  
13,510
     
14,362
 
Equity securities gains (losses), net
  
11,966
     
(3,076
)
Fixed income securities gains, net
  
6,970
     
422
 
Other
 
16,766
     
12,647
 
Total noninterest income
  
411,328
     
319,326
 
               
Noninterest expense:
              
Salaries and employee benefits
  
562,052
     
418,960
 
Occupancy, net
  
74,437
     
56,005
 
Furniture and equipment
 
66,102
     
49,158
 
Legal and professional services
  
28,900
     
24,792
 
Postage and supplies
  
24,674
     
19,796
 
Advertising
  
19,365
     
15,303
 
Impairment losses on long-lived assets
  
1,304
     
633
 
Restructuring charges
  
17
     
92
 
Merger related expense
  
18,262
     
207
 
Amortization of core deposit and other intangibles
  
32,101
     
10,813
 
Provision for unfunded lending commitments
  
517
     
3,148
 
Other
 
159,780
     
130,095
 
Total noninterest expense
  
987,511
     
729,002
 
               
Income before income taxes and minority interest
  
683,605
     
543,948
 
Income taxes
  
237,869
     
194,279
 
Minority interest
  
9,119
     
(2,345
)
Net income
$
436,617
    
$
352,014
  
               
Weighted average shares outstanding during the period:
             
Basic shares
  
105,922
     
89,901
 
Diluted shares
  
107,950
     
91,606
 
               
Net income per common share:
              
Basic
$
4.12
    
$
3.92
  
Diluted
  
4.04
     
3.84
 

- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME
(Unaudited)
 
             
Accumulated
            
 
                
other
          
Total
 
Common
  
Retained
  
comprehensive
  
Deferred
  
shareholders'
(In thousands)
stock
  
earnings
  
income (loss)
  
compensation
  
equity
                                       
Balance, December 31, 2005
$
2,156,732
    
$
2,179,885
    
$
(83,043
)
  
$
(16,310
)
  
$
4,237,264
  
Comprehensive income:
                                      
Net income for the period
          
436,617
                     
436,617
 
Other comprehensive loss, net of tax:
                                      
Net realized and unrealized holding losses
                                      
on investments and retained interests
                  
(1,865
)
                
Foreign currency translation
                  
646
                 
Reclassification for net realized gains
                                      
on investments recorded in operations
                  
(11,693
)
                
Net unrealized gains on derivative instruments
                  
6,663
                 
Other comprehensive loss
                  
(6,249
)
            
(6,249
)
Total comprehensive income
                                  
430,368
 
Stock redeemed and retired
  
(1,439
)
                            
(1,439
)
Net stock options exercised
  
79,014
                             
79,014
 
Reversal of deferred compensation, adoption
                                      
of SFAS 123R
  
(11,111
)
                    
11,111
     
-
 
Share-based compensation
  
17,262
                             
17,262
 
Cash dividends – common, $1.08 per share
          
(114,877
)
                    
(114,877
)
Change in deferred compensation
                          
(4,426
)
    
(4,426
)
Balance, September 30, 2006
$
2,240,458
    
$
2,501,625
    
$
(89,292
)
  
$
(9,625
)
  
$
4,643,166
  
                                       
                                       
Balance, December 31, 2004
$
972,065
    
$
1,830,064
    
$
(7,932
)
  
$
(4,218
)
  
$
2,789,979
  
Comprehensive income:
                                      
Net income for the period
          
352,014
                     
352,014
 
Other comprehensive loss, net of tax:
                                      
Net realized and unrealized holding losses
                                      
on investments and retained interests
                  
(9,122
)
                
Foreign currency translation
                  
(1,313
)
                
Reclassification for net realized gains
                                      
on investments recorded in operations
                  
(323
)
                
Net unrealized losses on derivative instruments
                  
(33,398
)
                
Other comprehensive loss
                  
(44,156
)
            
(44,156
)
Total comprehensive income
                                  
307,858
 
Stock redeemed and retired
  
(80,795
)
                            
(80,795
)
Net stock options exercised and restricted stock issued
  
79,732
                             
79,732
 
Cash dividends – common, $1.08 per share
          
(97,639
)
                    
(97,639
)
Change in deferred compensation
                          
38
     
38
 
Balance, September 30, 2005
$
971,002
    
$
2,084,439
    
$
(52,088
)
  
$
(4,180
)
  
$
2,999,173
  
 
Total comprehensive income for the three months ended September 30, 2006 and 2005 was $212,709 and $83,787, respectively.
 
- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
 
Nonperforming Assets
                                      
(Unaudited)
                                      
                                       
(In thousands)
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2006
  
2006
  
2005
  
2005
                                       
Nonaccrual loans
$
64,650
    
$
57,249
    
$
71,376
    
$
68,717
    
$
67,248
  
Restructured loans
  
179
     
202
     
216
     
380
     
677
 
Other real estate owned
  
9,986
     
16,024
     
24,964
     
19,966
     
15,176
 
Total
$
74,815
    
$
73,475
    
$
96,556
    
$
89,063
    
$
83,101
  
% of net loans and leases* and other real
                                      
estate owned
 
0.22
%
    
0.22
%
    
0.31
%
    
0.30
%
    
0.35
%
                                       
Accruing loans past due 90 days or more
$
20,407
    
$
29,434
    
$
10,299
    
$
17,153
    
$
15,836
  
                                       
% of net loans and leases*
  
0.06
%
    
0.09
%
    
0.03
%
    
0.06
%
    
0.07
%
                                       
*Includes loans held for sale.
                                      

Allowances for Credit Losses
                            
(Unaudited)
                            
                             
 
Three Months Ended
(In thousands)
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2006
  
2006
  
2005
  
2005
Allowance for Loan Losses
                                      
Balance at beginning of period
$
348,475
    
$
341,261
    
$
338,399
    
$
287,237
    
$
281,428
  
Allowance of company acquired
  
-
     
-
     
-
     
49,217
     
-
 
Add:
                                      
Provision for losses
  
14,363
     
17,022
     
14,512
     
10,116
     
12,107
 
Deduct:
                                      
Loan and lease charge-offs
  
(10,882
)
    
(16,082
)
    
(15,609
)
    
(12,168
)
    
(10,883
)
Recoveries
 
4,386
     
6,274
     
3,959
     
3,997
     
4,585
 
Net loan and lease charge-offs
  
(6,496
)
    
(9,808
)
    
(11,650
)
    
(8,171
)
    
(6,298
)
Balance at end of period
$
356,342
    
$
348,475
    
$
341,261
    
$
338,399
    
$
287,237
  
                                       
Ratio of allowance for loan losses to net loans
                                      
and leases outstanding at period end
  
1.06
%
    
1.07
%
    
1.10
%
    
1.12
%
    
1.20
%
                                       
Ratio of allowance for loan losses to nonperforming
                                      
loans at period end
  
549.66
%
    
606.56
%
    
476.67
%
    
489.74
%
    
422.87
%
                                       
Allowance for Unfunded Lending Commitments
                                      
Balance at beginning of period
$
17,592
    
$
17,841
    
$
18,120
    
$
15,830
    
$
15,395
  
Allowance of company acquired
  
-
     
-
     
-
     
2,013
     
-
 
Provision charged (credited) against earnings
  
1,045
     
(249
)
    
(279
)
    
277
     
435
 
Balance at end of period
$
18,637
    
$
17,592
    
$
17,841
    
$
18,120
    
$
15,830
  
                                       
Total Allowances for Credit Losses
                                      
Allowance for loan losses
$
356,342
    
$
348,475
    
$
341,261
    
$
338,399
    
$
287,237
  
Allowance for unfunded lending commitments
  
18,637
     
17,592
     
17,841
     
18,120
     
15,830
 
Total allowances for credit losses
$
374,979
    
$
366,067
    
$
359,102
    
$
356,519
    
$
303,067
  
                                       
Ratio of total allowances for credit losses to net loans
                                      
and leases outstanding at period end
  
1.11
%
    
1.12
%
    
1.15
%
    
1.18
%
    
1.27
%

- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16
 

Sold Loans Being Serviced
                            
(Unaudited)
                            
                                       
 
Three Months Ended
(In thousands)
September 30,
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2006
  
2006
  
2005
  
2005
                                       
Balance at beginning of period
$
3,003,101
    
$
3,183,992
    
$
3,382,603
    
$
3,561,818
    
$
2,910,182
  
New loans sold
  
46,073
     
82,553
     
59,417
     
100,273
     
880,808
 
Payments and other reductions
  
(252,530
)
    
(263,444
)
    
(258,028
)
    
(279,488
)
    
(229,172
)
Balance at end of period
$
2,796,644
    
$
3,003,101
    
$
3,183,992
    
$
3,382,603
    
$
3,561,818
  
 
 

Loan Balances By Portfolio Type
                            
(Unaudited)
                            
                             
(In millions)
September 30,
  
June 30,
  
March 31,
  
December 31,
  
September 30,
 
2006
  
2006
  
2006
  
2005
  
2005
                                       
Loans held for sale
$
268
    
$
249
    
$
312
    
$
256
    
$
213
  
                                       
Commercial lending:
                                      
Commercial and industrial
  
7,846
     
7,539
     
7,261
     
7,192
     
4,885
 
Leasing
  
420
     
407
     
383
     
373
     
359
 
Owner occupied
  
5,855
     
5,574
     
5,159
     
4,825
     
4,063
 
Total commercial lending
  
14,121
     
13,520
     
12,803
     
12,390
     
9,307
 
                                       
Commercial real estate:
                                      
Construction and land development
  
7,362
     
6,958
     
6,292
     
6,065
     
4,471
 
Term
  
4,960
     
4,981
     
4,847
     
4,640
     
4,051
 
Total commercial real estate
  
12,322
     
11,939
     
11,139
     
10,705
     
8,522
 
                                       
Consumer:
                                      
Home equity credit line and other
                                      
consumer real estate
  
1,944
     
1,963
     
1,892
     
1,831
     
1,659
 
1-4 family residential
  
4,255
     
4,244
     
4,191
     
4,130
     
3,574
 
Bankcard and other revolving plans
  
281
     
279
     
254
     
207
     
195
 
Other
  
458
     
453
     
464
     
537
     
437
 
Total consumer
  
6,938
     
6,939
     
6,801
     
6,705
     
5,865
 
                                       
Foreign loans
  
3
     
3
     
3
     
5
     
5
 
                                       
Other receivables
  
200
     
175
     
212
     
191
     
125
 
Total loans
$
33,852
    
$
32,825
    
$
31,270
    
$
30,252
    
$
24,037
  
 
 
- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 17
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
 
 
Three Months Ended
  
Three Months Ended
 
September 30, 2006
  
September 30, 2005
(In thousands)
Average
  
Amount of
  
Average
  
Average
  
Amount of
  
Average
 
balance
  
interest (1)
  
rate
  
balance
  
interest (1)
  
rate
ASSETS
                                          
Money market investments
$
461,418
    
$
6,431
    
5.53
%
  
$
915,954
    
$
7,723
    
3.35
%
Securities:
                                          
Held to maturity
  
643,942
     
11,036
   
6.80
%
    
641,745
     
11,159
   
6.90
%
Available for sale
  
4,825,151
     
69,292
   
5.70
%
    
3,866,988
     
50,582
   
5.19
%
Trading account
  
136,156
     
1,621
   
4.72
%
    
485,002
     
4,753
   
3.89
%
Total securities
  
5,605,249
     
81,949
   
5.80
%
    
4,993,735
     
66,494
   
5.28
%
                                           
Loans:
                                          
Loans held for sale
 
259,540
     
4,275
   
6.53
%
    
187,692
     
2,462
   
5.20
%
Net loans and leases (2)
  
32,846,176
     
645,183
   
7.79
%
    
23,821,332
     
411,772
   
6.86
%
Total loans and leases
  
33,105,716
     
649,458
   
7.78
%
    
24,009,024
     
414,234
   
6.85
%
Total interest-earning assets
  
39,172,383
     
737,838
   
7.47
%
    
29,918,713
     
488,451
   
6.48
%
Cash and due from banks
  
1,458,223
                   
1,123,297
               
Allowance for loan losses
  
(351,495
)
                  
(284,423
)
              
Goodwill
  
1,881,708
                   
638,957
               
Core deposit and other intangibles
  
175,259
                   
52,276
               
Other assets
  
2,344,304
                   
1,769,657
               
Total assets
$
44,680,382
                  
$
33,218,477
                
                                           
LIABILITIES
                                          
Interest-bearing deposits:
                                          
Savings and NOW
$
5,298,397
      
21,223
   
1.59
%
  
$
4,341,774
      
9,498
   
0.87
%
Money market
  
10,526,512
     
88,187
   
3.32
%
    
9,006,189
     
50,041
   
2.20
%
Time under $100,000
  
2,093,886
     
20,664
   
3.92
%
    
1,522,194
     
10,941
   
2.85
%
Time $100,000 and over
  
3,536,054
     
40,876
   
4.59
%
    
1,777,998
     
14,954
   
3.34
%
Foreign
  
2,043,999
     
25,095
   
4.87
%
    
715,838
     
5,641
   
3.13
%
Total interest-bearing deposits
  
23,498,848
     
196,045
   
3.31
%
    
17,363,993
     
91,075
   
2.08
%
Borrowed funds:
                                          
Securities sold, not yet purchased
  
62,661
     
715
   
4.53
%
    
503,722
     
4,660
   
3.67
%
Federal funds purchased and security
                                          
repurchase agreements
  
2,725,315
     
31,547
   
4.59
%
    
2,186,773
     
16,368
   
2.97
%
Commercial paper
  
246,220
     
3,375
   
5.44
%
    
143,239
     
1,294
   
3.58
%
FHLB advances and other borrowings:
                                          
One year or less
  
832,503
     
11,331
   
5.40
%
    
107,606
     
891
   
3.29
%
Over one year
  
133,124
     
1,859
   
5.54
%
    
226,786
     
2,885
   
5.05
%
Long-term debt
  
2,458,900
     
40,360
   
6.51
%
    
1,701,575
     
25,452
   
5.93
%
Total borrowed funds
  
6,458,723
     
89,187
   
5.48
%
    
4,869,701
     
51,550
   
4.20
%
Total interest-bearing liabilities
  
29,957,571
     
285,232
   
3.78
%
    
22,233,694
     
142,625
   
2.55
%
Noninterest-bearing deposits
  
9,465,181
                   
7,443,394
               
Other liabilities
  
673,786
                   
542,554
               
Total liabilities
  
40,096,538
                   
30,219,642
               
Minority interest
  
37,854
                   
26,220
               
Total shareholders' equity
  
4,545,990
                   
2,972,615
               
Total liabilities and shareholders' equity
$
44,680,382
                  
$
33,218,477
                
                                           
Spread on average interest-bearing funds
                
3.69
%
                  
3.93
%
Taxable-equivalent net interest income and
                                          
net yield on interest-earning assets
        
$
452,606
    
4.58
%
          
$
345,826
    
4.59
%
 
 (1)  Taxable-equivalent rates used where applicable.
 (2)  Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.
 
 
- more -
ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 18
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
 

 
Nine Months Ended
  
Nine Months Ended
 
September 30, 2006
  
September 30, 2005
(In thousands)
Average
  
Amount of
  
Average
  
Average
  
Amount of
  
Average
 
balance
  
interest (1)
  
rate
  
balance
  
interest (1)
  
rate
ASSETS
                                          
Money market investments
$
482,621
    
$
18,188
    
5.04
%
  
$
865,182
    
$
18,402
    
2.84
%
Securities:
                                          
Held to maturity
  
640,245
     
32,712
   
6.83
%
    
640,090
     
33,245
   
6.94
%
Available for sale
  
5,053,420
     
214,249
   
5.67
%
    
3,919,114
     
149,204
   
5.09
%
Trading account
  
156,288
     
5,690
   
4.87
%
    
532,497
     
15,832
   
3.98
%
Total securities
  
5,849,953
     
252,651
   
5.77
%
    
5,091,701
     
198,281
   
5.21
%
                                           
Loans:
                                          
Loans held for sale
 
266,050
     
12,376
   
6.22
%
    
190,604
     
6,683
   
4.69
%
Net loans and leases (2)
  
31,568,460
     
1,791,205
   
7.59
%
    
23,152,712
     
1,153,991
   
6.66
%
Total loans and leases
  
31,834,510
     
1,803,581
   
7.57
%
    
23,343,316
     
1,160,674
   
6.65
%
Total interest-earning assets
  
38,167,084
     
2,074,420
   
7.27
%
    
29,300,199
     
1,377,357
   
6.29
%
Cash and due from banks
  
1,479,054
                   
1,073,089
               
Allowance for loan losses
  
(345,925
)
                  
(278,708
)
              
Goodwill
  
1,884,462
                   
640,151
               
Core deposit and other intangibles
  
185,619
                   
53,964
               
Other assets
  
2,340,239
                   
1,743,030
               
Total assets
$
43,710,533
                  
$
32,531,725
                
                                           
LIABILITIES
                                          
Interest-bearing deposits:
                                          
Savings and NOW
$
5,050,281
      
51,566
   
1.37
%
  
$
4,322,260
      
25,498
   
0.79
%
Money market
  
10,850,821
     
241,598
   
2.98
%
    
8,890,776
     
124,013
   
1.86
%
Time under $100,000
  
2,012,586
     
53,998
   
3.59
%
    
1,463,881
     
28,398
   
2.59
%
Time $100,000 and over
  
2,995,997
     
93,296
   
4.16
%
    
1,569,102
     
35,780
   
3.05
%
Foreign
  
1,964,021
     
66,250
   
4.51
%
    
573,938
     
11,802
   
2.75
%
Total interest-bearing deposits
  
22,873,706
     
506,708
   
2.96
%
    
16,819,957
     
225,491
   
1.79
%
Borrowed funds:
                                          
Securities sold, not yet purchased
  
60,818
     
2,052
   
4.51
%
    
507,137
     
13,903
   
3.67
%
Federal funds purchased and security
                                          
repurchase agreements
  
2,734,524
     
86,520
   
4.23
%
    
2,314,856
     
44,783
   
2.59
%
Commercial paper
  
215,100
     
8,217
   
5.11
%
    
149,637
     
3,471
   
3.10
%
FHLB advances and other borrowings:
                                          
One year or less
  
550,737
     
21,632
   
5.25
%
    
269,859
     
5,837
   
2.89
%
Over one year
  
153,524
     
6,443
   
5.61
%
    
227,319
     
8,587
   
5.05
%
Long-term debt
  
2,479,316
     
119,157
   
6.43
%
    
1,694,642
     
73,251
   
5.78
%
Total borrowed funds
  
6,194,019
     
244,021
   
5.27
%
    
5,163,450
     
149,832
   
3.88
%
Total interest-bearing liabilities
  
29,067,725
     
750,729
   
3.45
%
    
21,983,407
     
375,323
   
2.28
%
Noninterest-bearing deposits
  
9,517,248
                   
7,125,473
               
Other liabilities
  
665,822
                   
505,413
               
Total liabilities
  
39,250,795
                   
29,614,293
               
Minority interest
  
31,556
                   
25,270
               
Total shareholders' equity
  
4,428,182
                   
2,892,162
               
Total liabilities and shareholders' equity
$
43,710,533
                  
$
32,531,725
                
                                           
Spread on average interest-bearing funds
                
3.82
%
                  
4.01
%
Taxable-equivalent net interest income and
                                          
net yield on interest-earning assets
        
$
1,323,691
    
4.64
%
          
$
1,002,034
    
4.57
%
 
 (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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