ex99_1.htm

EX-99.1 2 ex99_1.htm PRESS RELEASE ex99_1.htm

Exhibit 99.1

***FOR IMMEDIATE RELEASE***

For: ZIONS BANCORPORATION Contact: Clark Hinckley

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

Salt Lake City, Utah April 20, 2009

Harris H. Simmons

Chairman/Chief Executive Officer

ZIONS BANCORPORATION REPORTS 2009 FIRST QUARTER

LOSS DRIVEN LARGELY BY NONCASH GOODWILL IMPAIRMENT

Company Builds Loan Loss Reserves by $146 Million

While Net Loan Charge-offs Decline

SALT LAKE CITY, April 20, 2009 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported a first quarter loss from core banking operations of $0.39 per diluted common share, excluding impairment and valuation losses on securities of $1.35 per diluted share and noncash charges from goodwill impairment of $5.55 per diluted share. Including these charges, the first quarter net loss applicable to common shareholders was $832.2 million, or $7.29 per diluted share.

First Quarter 2009 Highlights

Net loan charge-offs of $151.7 million compared to $179.7 million in the fourth quarter.

Provision for loan loss reserves of $297.6 million compared to $285.2 million in the fourth quarter.

Net interest margin of 3.93% compared to 4.20% in the fourth quarter, as the Company had on average about $3 billion in short-term investments during the quarter.

Impairment and valuation losses on securities of $249 million, of which $182 million related to purchases of AAA and AA-rated securities from Lockhart that were downgraded.

Noncash goodwill impairment loss of $634 million at Amegy Bank reducing its goodwill by 51%.

Total gross extensions of credit of $3.8 billion, of which $1.9 billion were new loans (excluding loans acquired from Alliance Bank).

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ZIONS BANCORPORATION

Press Release – Page 2

April 20, 2009

“In what continues to be perhaps the most difficult economic environment in over half a century, our balance sheet remains strong, with record levels of liquidity,” said Harris H. Simmons, chairman and chief executive officer. “After several quarters of significant increases, net loan charge-offs actually declined this quarter. And over the past two quarters we have reduced the goodwill on our balance sheet by nearly 50%. While these noncash goodwill impairments impact reported earnings, they have no impact on regulatory and tangible capital ratios,” Simmons added. “In addition, we continue to successfully serve our customers and, in fact, extended $3.8 billion of credit during the quarter, of which $1.9 billion were new loans to credit-worthy individuals and businesses. This continued lending is important to our customers because it helps them manage in this very challenging environment and, in turn, will bolster the overall economy.”

Acquisition of Alliance Bank

On February 6, 2009, the Company’s California Bank & Trust subsidiary acquired the approximately $1.1 billion of assets of the failed Alliance Bank headquartered in Culver City, California from the FDIC as receiver, including the entire loan portfolio, $1.0 billion of deposits, and five branches. In addition to the excess of assets over liabilities, CB&T received approximately $10 million in cash from the FDIC and entered into a loss sharing agreement in which the FDIC generally will assume 80% of the first $275 million of credit losses and 95% of the credit losses in excess of $275 million. As a result of the loss sharing agreement, the acquired assets are presented in the Company’s balance sheet as “FDIC-supported assets.”

Loans

On-balance-sheet net loans and leases of $41.9 billion at March 31, 2009 increased approximately $0.2 billion or 2.6% annualized from $41.7 billion at December 31, 2008, and increased approximately $2.2 billion or 5.6% from $39.7 billion at March 31, 2008. The presentation of on-balance sheet net loans and leases excludes loans held for sale for all periods presented. Excluding the $0.8 billion of loans from Alliance at March 31, 2009, on-balance sheet net loans and leases decreased approximately $0.6 billion or 5.4% annualized during the quarter due to pay-downs and charge-offs.

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ZIONS BANCORPORATION

Press Release – Page 3

April 20, 2009

Deposits

Average total deposits for the first quarter of 2009 increased $2.5 billion or 25.7% annualized to $42.1 billion compared to $39.6 billion for the fourth quarter of 2008, and increased $5.5 billion or 15.1% compared to $36.6 billion for the first quarter of 2008. Excluding the average deposits from Alliance for the quarter, average total deposits increased $2.0 billion or 20.6% annualized for the first quarter. The growth occurred across most deposit types. Average noninterest-bearing demand deposits increased $0.5 billion or 23.6% annualized to $9.9 billion compared to $9.4 billion for the fourth quarter of 2008, including $93.1 million of average demand deposits from Alliance. The growth in deposits was used to reduce short-term FHLB advances and other borrowings by $1.6 billion to $0.4 billion at March 31, 2009.

Net Interest Income

The net interest margin was 3.93% for the first quarter of 2009 compared to 4.20% for the fourth quarter of 2008 and 4.23% for the first quarter of 2008. The spread between loan yields and deposit rates remained essentially unchanged from the fourth quarter. The decreased net interest margin for the first quarter of 2009 compared to the fourth quarter of 2008 was driven primarily by an increase in the Company’s liquidity position accompanied by a significant decrease in yields on short-term investments, and by the increase in nonaccrual loans. On average during the quarter, the Company had approximately $3 billion of short-term investments including approximately $1 billion held by the Parent.

Net interest income for the first quarter of 2009 decreased $33.6 million to $474.8 million compared to $508.4 million for the fourth quarter of 2008, and decreased $11.7 million or 2.4% compared to $486.5 million for the first quarter of 2008.

As of March 31, 2009, the Company estimates that its available borrowing capacity from the Federal Reserve and the FHLB approximates one-third of its deposits.

Impairment Loss on Goodwill

The Company recognized an impairment loss on goodwill during the first quarter of 2009 of $634.0 million or $5.55 per diluted share compared to $353.8 million during the

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ZIONS BANCORPORATION

Press Release – Page 4

April 20, 2009

fourth quarter of 2008. The first quarter impairment loss was at Amegy Bank of Texas, which has $616 million of goodwill remaining after this impairment. This loss primarily reflects declines in market values of peer banks in Texas and a weaker economic outlook in that state. The loss is a noncash accounting adjustment to the Company’s balance sheet that does not affect regulatory and tangible capital ratios. The goodwill impairment losses during the last two quarters have reduced the amount of the Company’s goodwill by approximately $1.0 billion, or half of the balance at September 30, 2008.

Asset Quality

Nonperforming assets were $1,770.2 million at March 31, 2009 ($1,663.2 million excluding FDIC-supported assets) compared to $1,140.5 million at December 31, 2008 and $434.3 million at March 31, 2008. The increase related mainly to commercial real estate loans primarily in Nevada, Arizona and Texas and to commercial and industrial loans primarily in Utah. The ratio of nonperforming assets excluding FDIC-supported assets to net loans and leases and other real estate owned was 4.00% at March 31, 2009 compared to 2.71% at December 31, 2008 and 1.09% at March 31, 2008.

Net loan and lease charge-offs for the first quarter of 2009 were $151.7 million or 1.47% annualized of average loans excluding FDIC-supported assets. This compares with $179.7 million or 1.72% annualized of average loans for the fourth quarter of 2008 and $50.8 million or 0.52% annualized of average loans for the first quarter of 2008.

The provision for loan losses was $297.6 million for the first quarter of 2009 compared to $285.2 million for the fourth quarter of 2008 and $92.3 million for the first quarter of 2008. The provision for the first quarter of 2009 was 2.88% annualized of average loans excluding FDIC-supported assets and was $145.9 million in excess of net loan and lease charge-offs.

The allowance for loan losses as a percentage of net loans and leases excluding FDIC-supported assets was 2.03% at March 31, 2009 compared to 1.65% at December 31, 2008 and 1.26% at March 31, 2008. The combined allowance for loan losses and the reserve for unfunded lending commitments was $885.6 million,

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ZIONS BANCORPORATION

Press Release – Page 5

April 20, 2009

or 2.16% of net loans and leases excluding FDIC-supported assets at March 31, 2009, compared to 1.77% at December 31, 2008 and 1.33% at March 31, 2008. The $0.8 billion of loans from Alliance were recorded at fair value without a corresponding allowance for loan losses, and as noted, are supported by a loss sharing agreement with the FDIC.

Investment Securities and Lockhart Funding

During the first quarter of 2009, the Company recognized losses on investment securities of $249.4 million. These losses consisted of other-than-temporary impairment (“OTTI”) of $49.0 million or $0.26 per diluted share, and valuation losses on securities purchased of $200.4 million or $1.09 per diluted share, which included $181.7 million from Lockhart Funding LLC and $18.7 million from the purchase of auction rate securities from customers.

The Company recognized OTTI during the first quarter of 2009 according to FSP FAS 115-2 and FAS 124-2 issued by the FASB on April 9, 2009. This new guidance requires that credit-related OTTI be recognized in earnings while noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (“OCI”). The credit-related OTTI recognized in earnings during the first quarter of $49.0 million related to securities newly deemed OTTI and to securities previously adjusted for OTTI as follows:

$29.7 million for bank and insurance trust preferred CDOs (10 newly deemed OTTI, seven previous)

$1.0 million for bank and insurance income notes (two newly deemed OTTI, two previous)

$15.5 million for REIT trust preferred CDOs (four previous)

$2.8 million for ABS CDOs (three previous)

Noncredit-related OTTI on securities not expected to be sold of $82.9 million ($49.9 million after-tax) was recognized in OCI during the first quarter of 2009. Also under the new guidance, the Company reclassified the noncredit-related portion of OTTI losses previously recognized in earnings during 2008 and the fourth quarter of 2007. The $137.5 million after-tax amount was reflected as a cumulative effect adjustment that increased retained earnings and decreased accumulated OCI. This reclassification had a positive impact on regulatory capital and no impact on tangible common equity.

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ZIONS BANCORPORATION

Press Release – Page 6

April 20, 2009

The $181.7 million of valuation losses on securities purchased resulted from purchases by Zions Bank from Lockhart of $537 million of AAA and AA-rated securities that were downgraded. As disclosed in a previous SEC filing, Lockhart had remaining assets of approximately $186 million at March 31, 2009 compared to $738 million at December 31, 2008. Lockhart’s diminished size will make it difficult to maintain a viable off-balance sheet commercial paper securities conduit. Accordingly, Zions Bank expects to acquire the remaining assets of Lockhart sometime during the second quarter of 2009. The fair value of Lockhart’s assets at March 31, 2009 was approximately $180 million. The effects of these security purchases and the potential acquisition of the remaining Lockhart securities on the Company’s tangible common equity ratio are discussed subsequently.

The remaining $18.7 million of valuation losses on securities purchased resulted from our voluntary purchase of all of the $255.3 million of auction rate securities previously sold to customers of certain of the Company’s subsidiaries.

Noninterest Income

Total noninterest income for the first quarter of 2009 was $(111.6) million compared to $(82.3) million for the fourth quarter of 2008 and $111.0 million for the first quarter of 2008. The amount for the first quarter of 2009 includes the previously discussed impairment and valuation losses on securities of $249.4 million compared to $204.3 million for the fourth quarter of 2008.

Fair value and nonhedge derivative income was $4.0 million during the first quarter compared to a loss of $5.8 million during the fourth quarter. The increase primarily reflects a reduced loss compared to the fourth quarter on a CDO security elected under the fair value option and net changes in credit valuation adjustments on derivatives.

Net equity securities gains (losses) were $1.9 million for the first quarter compared to $(14.1) million for the fourth quarter. The fourth quarter loss included an $11.0 million impairment on Federal Agricultural Mortgage Corporation stock.

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ZIONS BANCORPORATION

Press Release – Page 7

April 20, 2009

Noninterest Expense

Noninterest expense for the first quarter of 2009 was $376.2 million compared to $398.2 million for the fourth quarter of 2008 and $350.1 million for the first quarter of 2008. Salaries and employee benefits declined $5.2 million or 2.5% compared to the first quarter of 2008, but increased from the fourth quarter of 2008 due to increased payroll taxes and to adjustments in the fourth quarter for certain employee benefit and variable compensation accruals. Other real estate expenses decreased $21.8 million from the fourth quarter of 2008 and FDIC premiums increased $8.4 million.

Capital Management

The Company’s tangible common equity ratio was 5.26% at March 31, 2009 compared to 5.89% at December 31, 2008 and 5.73% at March 31, 2008. The decrease of 63 basis points during the first quarter consisted primarily of 21 basis points from the purchases of securities from Lockhart, 10 basis points from the acquisition of Alliance Bank, and 23 basis points for the decline of securities’ fair values in OCI.

The tangible equity ratio was 8.28% at March 31, 2009 compared to 8.91% at December 31, 2008 and 6.26% at March 31, 2008. At March 31, 2009, estimated regulatory Tier 1 risk-based capital and total risk-based capital were $5,204 million and $7,374 million compared to $5,269 million and $7,386 million at December 31, 2008, respectively. Estimated ratios at March 31, 2009 for Tier 1 risk-based capital and total risk-based capital were 9.33% and 13.23% compared to 10.22% and 14.32% at December 31, 2008, respectively.

Weighted average common and common-equivalent shares outstanding for the first quarter of 2009 were 114,106,164 compared to 114,065,100 for the fourth quarter of 2008 and 106,687,211 for the first quarter of 2008. Common shares outstanding at March 31, 2009 were 115,335,668 compared to 115,344,813 at December 31, 2008 and 107,139,188 at March 31, 2008.

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ZIONS BANCORPORATION

Press Release – Page 8

April 20, 2009

Conference Call

Zions will host a conference call to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 20, 2009). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-261-3417 (international: 617-614-3673) and entering the passcode 21991094, 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 6:30 p.m. ET on Monday, April 20, 2009, until midnight ET on Monday, April 27, 2009, by dialing 1-888-286-8010 (international: 617-801-6888) and entering the passcode 84841441. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation

Zions Bancorporation is one of the nation’s premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through approximately 513 offices in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

Statements in this 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 internationally, nationally or locally in areas in which the Company conducts its operations, including changes in asset-backed commercial paper markets and valuations

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ZIONS BANCORPORATION

Press Release – Page 9

April 20, 2009

in structured securities and other assets; changes in governmental policies and programs resulting from general economic and financial market conditions; changes in interest and funding rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; 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 2008 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 10
FINANCIAL HIGHLIGHTS
(Unaudited)

	Three Months Ended
(In thousands, except per share and ratio data)	March 31,
	2009			2008			% Change
EARNINGS
Taxable-equivalent net interest income	$	480,670		$	492,537			(2.41	)%
Taxable-equivalent revenue		369,109			603,537			(38.84	)%
Net interest income		474,775			486,458			(2.40	)%
Noninterest income		(111,561	)		111,000			(200.51	)%
Provision for loan losses		297,624			92,282			222.52	%
Noninterest expense		376,205			350,103			7.46	%
Impairment loss on goodwill		633,992			-
Income (loss) before income taxes		(944,607	)		155,073			(709.14	)%
Income taxes (benefit)		(138,153	)		49,896			(376.88	)%
Net income (loss)		(806,454	)		105,177			(866.76	)%
Net income (loss) applicable to noncontrolling interests		(540	)		(1,572	)		(65.65	)%
Net income (loss) applicable to controlling interest		(805,914	)		106,749			(854.96	)%
Net earnings (loss) applicable to common shareholders		(832,200	)		104,296			(897.92	)%

PER COMMON SHARE
Net earnings (loss) (diluted)		(7.29	)		0.97			(851.55	)%
Dividends		0.04			0.43			(90.70	)%
Book value per common share		34.38			47.49			(27.61	)%

SELECTED RATIOS
Return on average assets		(5.90	)%		0.81	%
Return on average common equity		(68.42	)%		8.18	%
Efficiency ratio		101.92	%		58.01	%
Net interest margin		3.93	%		4.23	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
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FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)

	Three Months Ended
(In thousands, except share and ratio data)	March 31,
	2009			2008			% Change
AVERAGE BALANCES
Total assets	$	55,399,675		$	52,913,823			4.70	%
Total interest-earning assets		49,581,062			46,853,435			5.82	%
Securities		4,486,050			5,341,287			(16.01	)%
Net loans and leases		41,888,624			39,237,811			6.76	%
Goodwill		1,654,222			2,009,477			(17.68	)%
Core deposit and other intangibles		126,759			146,363			(13.39	)%
Total deposits		42,128,652			36,594,674			15.12	%
Shareholders’ equity:
Preferred equity		1,583,659			240,000			559.86	%
Common equity		4,932,969			5,126,621			(3.78	)%
Noncontrolling interests		27,720			30,676			(9.64	)%

Weighted average common and common-
equivalent shares outstanding		114,106,164			106,687,211			6.95	%

AT PERIOD END
Total assets	$	54,544,329		$	53,408,293			2.13	%
Total interest-earning assets		49,267,000			46,962,949			4.91	%
Securities		4,800,957			5,002,207			(4.02	)%
Net loans and leases		41,932,315			39,697,226			5.63	%
Allowance for loan losses		832,878			501,283			66.15	%
Reserve for unfunded lending commitments		52,761			25,148			109.80	%
Goodwill		1,034,465			2,009,517			(48.52	)%
Core deposit and other intangibles		124,585			140,672			(11.44	)%
Total deposits		43,307,233			37,516,337			15.44	%
Shareholders’ equity:
Preferred equity		1,587,027			240,000			561.26	%
Common equity		3,965,296			5,087,801			(22.06	)%
Noncontrolling interests		26,828			30,413			(11.79	)%

Common shares outstanding		115,335,668			107,139,188			7.65	%

Average equity to average assets		11.81	%		10.20	%
Common dividend payout	na				44.11	%
Tangible common equity ratio		5.26	%		5.73	%
Tangible equity ratio		8.28	%		6.26	%

Nonperforming assets, excluding covered assets	$	1,663,246		$	434,293			282.98	%
Ratio of nonperforming assets, excluding FDIC-supported
assets, to net loans and leases and other real estate owned		4.00	%		1.09	%
Accruing loans past due 90 days or more, excluding
FDIC-supported assets	$	88,035		$	84,637			4.01	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)

	Three Months Ended
(In thousands, except per share and ratio data)	March 31,			December 31,			September 30,			June 30,			March 31,
	2009			2008			2008			2008			2008
EARNINGS
Taxable-equivalent net interest income	$	480,670		$	514,422		$	497,822		$	490,587		$	492,537
Taxable-equivalent revenue		369,109			432,132			587,432			562,959			603,537
Net interest income		474,775			508,442			492,003			484,743			486,458
Noninterest income		(111,561	)		(82,290	)		89,610			72,372			111,000
Provision for loan losses		297,624			285,189			156,606			114,192			92,282
Noninterest expense		376,205			398,167			372,276			354,417			350,103
Impairment loss on goodwill		633,992			353,804			-			-			-
Income (loss) before income taxes		(944,607	)		(611,008	)		52,731			88,506			155,073
Income taxes (benefit)		(138,153	)		(126,512	)		11,214			22,037			49,896
Net income (loss)		(806,454	)		(484,496	)		41,517			66,469			105,177
Net income (loss) applicable to noncontrolling interests		(540	)		(1,520	)		3,757			(5,729	)		(1,572	)
Net income (loss) applicable to controlling interest		(805,914	)		(482,976	)		37,760			72,198			106,749
Net earnings (loss) applicable to common shareholders		(832,200	)		(498,084	)		33,351			69,744			104,296

PER COMMON SHARE
Net earnings (loss) (diluted)		(7.29	)		(4.37	)		0.31			0.65			0.97
Dividends		0.04			0.32			0.43			0.43			0.43
Book value per common share		34.38			42.65			45.78			46.82			47.49

SELECTED RATIOS
Return on average assets		(5.90	)%		(3.52	)%		0.28	%		0.54	%		0.81	%
Return on average common equity		(68.42	)%		(38.77	)%		2.59	%		5.53	%		8.18	%
Efficiency ratio		101.92	%		92.14	%		63.37	%		62.96	%		58.01	%
Net interest margin		3.93	%		4.20	%		4.13	%		4.18	%		4.23	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)

	Three Months Ended
(In thousands, except share and ratio data)	March 31,			December 31,			September 30,			June 30,			March 31,
	2009			2008			2008			2008			2008
AVERAGE BALANCES
Total assets	$	55,399,675		$	54,546,364		$	54,279,760		$	53,293,375		$	52,913,823
Total interest-earning assets		49,581,062			48,708,673			47,984,725			47,202,577			46,853,435
Securities		4,486,050			4,516,559			4,582,727			4,866,421			5,341,287
Net loans and leases		41,888,624			41,769,536			41,824,097			40,325,657			39,237,811
Goodwill		1,654,222			1,720,536			2,009,509			2,009,517			2,009,477
Core deposit and other intangibles		126,759			130,703			132,167			137,675			146,363
Total deposits		42,128,652			39,580,867			37,321,656			36,774,214			36,594,674
Shareholders’ equity:
Preferred equity		1,583,659			961,072			282,500			240,000			240,000
Common equity		4,932,969			5,110,430			5,123,399			5,070,047			5,126,621
Noncontrolling interests		27,720			28,751			29,949			27,244			30,676

Weighted average common and common-
equivalent shares outstanding		114,106,164			114,065,100			108,497,464			106,711,948			106,687,211

AT PERIOD END
Total assets	$	54,544,329		$	55,092,791		$	53,974,168		$	54,630,883		$	53,408,293
Total interest-earning assets		49,267,000			49,071,281			47,656,065			47,920,419			46,962,949
Securities		4,800,957			4,509,308			4,755,359			4,784,185			5,002,207
Net loans and leases		41,932,315			41,658,738			41,735,598			41,714,468			39,697,226
Allowance for loan losses		832,878			686,999			609,433			548,958			501,283
Reserve for unfunded lending commitments		52,761			50,934			23,574			26,838			25,148
Goodwill		1,034,465			1,651,377			2,009,504			2,009,511			2,009,517
Core deposit and other intangibles		124,585			125,935			133,989			132,481			140,672
Total deposits		43,307,233			41,316,496			38,590,901			37,607,995			37,516,337
Shareholders’ equity:
Preferred equity		1,587,027			1,581,834			286,949			240,000			240,000
Common equity		3,965,296			4,919,862			5,279,078			5,033,530			5,087,801
Noncontrolling interests		26,828			27,320			30,288			25,528			30,413

Common shares outstanding		115,335,668			115,344,813			115,302,598			107,518,975			107,139,188

Average equity to average assets		11.81	%		11.18	%		10.01	%		10.01	%		10.20	%
Common dividend payout	na			na				138.44	%		66.23	%		44.11	%
Tangible common equity ratio		5.26	%		5.89	%		6.05	%		5.51	%		5.73	%
Tangible equity ratio		8.28	%		8.91	%		6.66	%		6.01	%		6.26	%

Nonperforming assets, excluding FDIC-supported assets	$	1,663,246		$	1,140,461		$	924,442		$	697,432		$	434,293
Ratio of nonperforming assets, excluding FDIC-supported
assets, to net loans and leases and other real estate owned		4.00	%		2.71	%		2.20	%		1.66	%		1.09	%
Accruing loans past due 90 days or more, excluding
FDIC-supported assets	$	88,035		$	129,567		$	97,831		$	108,934		$	84,637

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14
CONSOLIDATED BALANCE SHEETS
	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except share amounts)	2009			2008			2008			2008			2008
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	1,321,972		$	1,475,976		$	1,441,957		$	1,751,724		$	1,660,539
Money market investments:
Interest-bearing deposits and commercial paper		1,952,555			2,332,759			568,875			504,314			1,243,860
Federal funds sold		13,277			83,451			274,129			274,456			121,892
Security resell agreements		305,111			286,707			170,009			484,487			689,235
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$1,361,460, $1,443,555, $1,587,006, $1,730,104 and $704,156)		1,648,971			1,790,989			1,917,354			1,914,833			701,658
Available-for-sale, at fair value		3,086,788			2,676,255			2,792,236			2,817,682			4,259,742
Trading account, at fair value (includes $0, $538, $531,
$463 and $0 transferred as collateral under
repurchase agreements)		65,198			42,064			45,769			51,670			40,807
		4,800,957			4,509,308			4,755,359			4,784,185			5,002,207

Loans held for sale		262,785			200,318			152,095			158,509			208,529

Loans:
Loans and leases excluding FDIC-supported assets		41,220,610			41,791,237			41,876,371			41,874,224			39,855,365
FDIC-supported assets		836,454
		42,057,064			41,791,237			41,876,371			41,874,224			39,855,365
Less:
Unearned income and fees, net of related costs		124,749			132,499			140,773			159,756			158,139
Allowance for loan losses		832,878			686,999			609,433			548,958			501,283
Loans and leases, net of allowance		41,099,437			40,971,739			41,126,165			41,165,510			39,195,943

Other noninterest-bearing investments		1,051,956			1,044,092			1,170,367			1,153,933			1,114,902
Premises and equipment, net		701,742			687,096			675,480			656,013			657,183
Goodwill		1,034,465			1,651,377			2,009,504			2,009,511			2,009,517
Core deposit and other intangibles		124,585			125,935			133,989			132,481			140,672
Other real estate owned		226,634			191,792			156,817			125,186			36,476
Other assets		1,648,853			1,532,241			1,339,422			1,430,574			1,327,338
	$	54,544,329		$	55,092,791		$	53,974,168		$	54,630,883		$	53,408,293

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	10,517,910		$	9,683,385		$	9,413,484		$	9,735,265		$	9,464,122
Interest-bearing:
Savings and NOW		4,710,899			4,452,919			4,341,873			4,590,767			4,661,963
Money market		18,103,564			16,826,846			14,087,288			13,387,401			12,986,387
Time under $100,000		3,112,864			2,974,566			2,954,116			2,466,082			2,564,434
Time $100,000 and over		4,647,015			4,756,218			4,468,225			4,102,369			4,548,009
Foreign		2,214,981			2,622,562			3,325,915			3,326,111			3,291,422
		43,307,233			41,316,496			38,590,901			37,607,995			37,516,337

Securities sold, not yet purchased		39,892			35,657			29,528			46,376			184,522
Federal funds purchased		1,213,970			965,835			1,179,197			2,379,055			1,817,587
Security repurchase agreements		551,686			899,751			734,379			1,010,325			1,144,178
Other liabilities		578,768			669,111			649,672			555,812			620,528
Commercial paper		984			15,451			40,493			137,200			164,657
Federal Home Loan Bank advances and other borrowings:
One year or less		429,655			2,039,853			4,690,784			5,003,057			3,956,775
Over one year		127,680			128,253			128,855			129,474			127,006
Long-term debt		2,715,310			2,493,368			2,334,044			2,462,531			2,518,489
Total liabilities		48,965,178			48,563,775			48,377,853			49,331,825			48,050,079

Shareholders’ equity:
Preferred stock, without par value, authorized 3,000,000 shares		1,587,027			1,581,834			286,949			240,000			240,000
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 115,335,668, 115,344,813,
115,302,598, 107,518,975 and 107,139,188 shares		2,607,541			2,599,916			2,482,517			2,224,455			2,219,905
Retained earnings		1,734,024			2,433,363			2,968,242			2,981,062			2,957,511
Accumulated other comprehensive income (loss)		(361,537	)		(98,958	)		(157,305	)		(158,325	)		(76,429	)
Deferred compensation		(14,732	)		(14,459	)		(14,376	)		(13,662	)		(13,186	)
Controlling interest shareholders’ equity		5,552,323			6,501,696			5,566,027			5,273,530			5,327,801
Noncontrolling interests		26,828			27,320			30,288			25,528			30,413
Total shareholders’ equity		5,579,151			6,529,016			5,596,315			5,299,058			5,358,214
	$	54,544,329		$	55,092,791		$	53,974,168		$	54,630,883		$	53,408,293

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended
(In thousands, except per share amounts)	March 31,			December 31,			September 30,			June 30,			March 31,
	2009			2008			2008			2008			2008
Interest income:
Interest and fees on loans	$	579,852		$	650,885		$	663,677		$	643,111		$	688,439
Interest on loans held for sale		2,756			2,442			1,916			2,699			3,017
Lease financing		4,593			4,999			5,515			5,767			5,818
Interest on money market investments		3,376			7,172			9,267			12,313			19,028
Interest on securities:
Held-to-maturity – taxable		18,908			22,317			21,780			15,730			2,455
Held-to-maturity – nontaxable		6,265			6,396			6,319			6,224			6,429
Available-for-sale – taxable		21,703			28,680			25,044			35,059			62,356
Available-for-sale – nontaxable		1,678			1,711			1,697			1,870			1,892
Trading account		571			598			437			159			681
Total interest income		639,702			725,200			735,652			722,932			790,115

Interest expense:
Interest on savings and money market deposits		74,553			95,717			90,720			80,144			103,987
Interest on time and foreign deposits		62,679			77,806			74,837			83,460			106,222
Interest on short-term borrowings		6,020			20,368			50,164			45,070			63,273
Interest on long-term borrowings		21,675			22,867			27,928			29,515			30,175
Total interest expense		164,927			216,758			243,649			238,189			303,657

Net interest income		474,775			508,442			492,003			484,743			486,458
Provision for loan losses		297,624			285,189			156,606			114,192			92,282
Net interest income after provision for loan losses		177,151			223,253			335,397			370,551			394,176

Noninterest income:
Service charges and fees on deposit accounts		52,788			52,641			53,695			51,067			49,585
Other service charges, commissions and fees		38,227			40,532			42,794			42,362			41,981
Trust and wealth management income		7,165			8,910			8,865			10,284			9,693
Capital markets and foreign exchange		13,204			15,048			12,257			12,196			10,397
Dividends and other investment income		9,310			16,001			7,042			10,409			12,910
Loan sales and servicing income		5,851			4,420			3,633			8,516			7,810
Income from securities conduit		1,235			1,542			336			1,043			2,581
Fair value and nonhedge derivative income (loss)		4,004			(5,819	)		(26,155	)		(19,789	)		3,787
Equity securities gains (losses), net		1,861			(14,125	)		12,971			(8,121	)		10,068
Fixed income securities gains (losses), net		195			(1,139	)		135			78			1,775
Impairment losses on investment securities:
Impairment losses on investment securities		(131,915	)		(196,472	)		(28,022	)		(38,761	)		(40,785	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		82,943
Net impairment losses on investment securities		(48,972	)		(196,472	)		(28,022	)		(38,761	)		(40,785	)
Valuation losses on securities purchased		(200,391	)		(7,868	)		-			-			(5,204	)
Other		3,962			4,039			2,059			3,088			6,402
Total noninterest income		(111,561	)		(82,290	)		89,610			72,372			111,000

Noninterest expense:
Salaries and employee benefits		204,161			190,861			208,995			201,291			209,354
Occupancy, net		28,327			29,460			30,552			27,364			26,799
Furniture and equipment		24,999			26,507			24,281			25,610			23,738
Other real estate expense		18,343			40,124			7,126			1,290			1,838
Legal and professional services		8,543			14,774			11,297			11,566			7,880
Postage and supplies		8,410			9,873			9,257			8,536			9,789
Advertising		7,148			10,078			6,782			7,520			6,351
FDIC premiums		14,171			5,745			5,286			4,624			4,203
Impairment losses on long-lived assets		-			895			2,239			-			-
Merger related expense		277			636			384			281			307
Amortization of core deposit and other intangibles		6,886			8,055			8,096			8,191			8,820
Other		54,940			61,159			57,981			58,144			51,024
Total noninterest expense		376,205			398,167			372,276			354,417			350,103

Impairment loss on goodwill		633,992			353,804			-			-			-

Income (loss) before income taxes		(944,607	)		(611,008	)		52,731			88,506			155,073
Income taxes (benefit)		(138,153	)		(126,512	)		11,214			22,037			49,896
Net income (loss)		(806,454	)		(484,496	)		41,517			66,469			105,177
Net income (loss) applicable to noncontrolling interests		(540	)		(1,520	)		3,757			(5,729	)		(1,572	)
Net income (loss) applicable to controlling interest		(805,914	)		(482,976	)		37,760			72,198			106,749
Preferred stock dividends		26,286			15,108			4,409			2,454			2,453
Net earnings (loss) applicable to common shareholders	$	(832,200	)	$	(498,084	)	$	33,351		$	69,744		$	104,296

Weighted average common shares outstanding during the period:
Basic shares		114,106			114,065			108,407			106,595			106,514
Diluted shares		114,106			114,065			108,497			106,712			106,687

Net earnings (loss) per common share:
Basic	$	(7.29	)	$	(4.37	)	$	0.31		$	0.65		$	0.97
Diluted		(7.29	)		(4.37	)		0.31			0.65			0.97

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
AND COMPREHENSIVE INCOME
(Unaudited)								Accumulated
								other									Total
(In thousands, except per share amounts)	Preferred		Common		Retained			comprehensive			Deferred			Noncontrolling			shareholders’
	stock		stock		earnings			income (loss)			compensation			interests			equity

Balance, December 31, 2008	$	1,581,834	$	2,599,916	$	2,433,363		$	(98,958	)	$	(14,459	)	$	27,320		$	6,529,016
Cumulative effect of change in accounting principle,
adoption of FSP FAS 115-2 and 124-2						137,462			(137,462	)								-
Comprehensive loss:
Net loss for the period						(805,914	)								(540	)		(806,454	)
Other comprehensive income (loss), net of tax:
Net realized and unrealized holding losses
on investments and retained interests									(93,563	)
Reclassification for net realized losses
on investments recorded in operations									28,062
Noncredit-related impairment losses on debt
securities not expected to be sold									(49,928	)
Amortization of debt securities with noncredit-
related impairment losses not expected to be sold									896
Net unrealized losses on derivative instruments									(10,584	)
Other comprehensive loss									(125,117	)								(125,117	)
Total comprehensive loss																		(931,571	)
Net stock issued under employee
plans and related tax benefits				7,625														7,625
Dividends on preferred stock		5,193				(26,286	)											(21,093	)
Dividends on common stock, $.04 per share						(4,601	)											(4,601	)
Change in deferred compensation												(273	)					(273	)
Activity in noncontrolling interests															48			48
Balance, March 31, 2009	$	1,587,027	$	2,607,541	$	1,734,024		$	(361,537	)	$	(14,732	)	$	26,828		$	5,579,151

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 17
INVESTMENT SECURITIES PORTFOLIO
ASSET-BACKED SECURITIES CLASSIFIED AT HIGHEST CREDIT RATING*
As of March 31, 2009 1
(Unaudited)					Net					Net
					unrealized					unrealized
					gains (losses)					gains (losses)			Estimated
	Par		Amortized		recognized			Carrying		not recognized			fair
(In thousands)	value		cost		in OCI 2			value		in OCI 2			value

HELD-TO-MATURITY:
Municipal securities	$	682,646	$	679,709	$	-		$	679,709	$	(2,100	)	$	677,609
Asset-backed securities:
Trust preferred securities – banks and insurance
AA rated
A rated		11,929		11,930		(1,440	)		10,490		(2,315	)		8,175
BBB rated		22,874		22,899		(2,240	)		20,659		(5,209	)		15,450
Noninvestment grade		1,229,704		1,189,768		(337,475	)		852,293		(247,857	)		604,436
		1,264,507		1,224,597		(341,155	)		883,442		(255,381	)		628,061
Trust preferred securities – real estate investment trusts
Noninvestment grade		45,000		36,055		(8,599	)		27,456		(9,036	)		18,420
		45,000		36,055		(8,599	)		27,456		(9,036	)		18,420
Other
AAA rated		23,407		21,777		(168	)		21,609		(8,383	)		13,226
AA rated		4,100		3,466		(1,096	)		2,370		586			2,956
A rated		21,000		19,072		47			19,119		(11,378	)		7,741
BBB rated		25,000		22,622		(11,704	)		10,918		(1,761	)		9,157
Noninvestment grade		12,619		9,437		(5,189	)		4,248		(56	)		4,192
		86,126		76,374		(18,110	)		58,264		(20,992	)		37,272
Other debt securities		100		100		-			100		(2	)		98
		2,078,379		2,016,835		(367,864	)		1,648,971		(287,511	)		1,361,460

AVAILABLE-FOR-SALE:
U.S. Treasury securities		27,546		26,977		888			27,865					27,865
U.S. Government agencies and corporations:
Agency securities		305,018		305,317		2,702			308,019					308,019
Agency guaranteed mortgage-backed securities		463,849		465,285		8,887			474,172					474,172
Small Business Administration loan-backed securities		636,656		682,179		(26,395	)		655,784					655,784
Municipal securities		244,937		241,444		2,416			243,860					243,860
Asset-backed securities:
Trust preferred securities – banks and insurance
AAA rated		86,707		85,950		(12,344	)		73,606					73,606
AA rated		642,514		481,164		(51,334	)		429,830					429,830
A rated		367,646		356,541		(146,079	)		210,462					210,462
BBB rated		163,696		139,360		(34,822	)		104,538					104,538
Not rated		26,020		25,003		(9,994	)		15,009					15,009
Noninvestment grade		179,766		147,618		(82,083	)		65,535					65,535
		1,466,349		1,235,636		(336,656	)		898,980					898,980
Trust preferred securities – real estate investment trusts
Noninvestment grade		145,000		92,889		(71,870	)		21,019					21,019
		145,000		92,889		(71,870	)		21,019					21,019
Auction rate securities
AAA rated		178,375		167,037		-			167,037					167,037
A rated		7,300		4,660		-			4,660					4,660
Noninvestment grade		6,800		6,183		-			6,183					6,183
		192,475		177,880		-			177,880					177,880
Other
AAA rated		61,540		58,449		(16,295	)		42,154					42,154
AA rated		3,669		2,083		(221	)		1,862					1,862
A rated		50,000		48,277		(12,287	)		35,990					35,990
BBB rated		6,146		4,650		(1,995	)		2,655					2,655
Noninvestment grade		49,012		10,441		(3,758	)		6,683					6,683
		170,367		123,900		(34,556	)		89,344					89,344
		3,652,197		3,351,507		(454,584	)		2,896,923					2,896,923
Other securities:
Mutual funds and stock		189,865		189,865		-			189,865					189,865
		3,842,062		3,541,372		(454,584	)		3,086,788					3,086,788
Total	$	5,920,441	$	5,558,207	$	(822,448	)	$	4,735,759	$	(287,511	)	$	4,448,248

* Ratings categories include entire range. For example, "A rated" includes A+, A and A-. Split rated securities with more than one rating are categorized at the
highest rating level.

1 Schedule reflects ratings as of April 16, 2009.
2 Other comprehensive income. All amounts reported are pretax.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 18
INVESTMENT SECURITIES PORTFOLIO
ASSET-BACKED SECURITIES CLASSIFIED AT LOWEST CREDIT RATING*
As of March 31, 2009 1
(Unaudited)					Net					Net
					unrealized					unrealized
					gains (losses)					gains (losses)			Estimated
	Par		Amortized		recognized			Carrying		not recognized			fair
(In thousands)	value		cost		in OCI 2			value		in OCI 2			value

HELD-TO-MATURITY:
Municipal securities	$	682,646	$	679,709	$	-		$	679,709	$	(2,100	)	$	677,609
Asset-backed securities:
Trust preferred securities – banks and insurance
Noninvestment grade		1,264,507		1,224,597		(341,155	)		883,442		(255,381	)		628,061
		1,264,507		1,224,597		(341,155	)		883,442		(255,381	)		628,061
Trust preferred securities – real estate investment trusts
Noninvestment grade		45,000		36,055		(8,599	)		27,456		(9,036	)		18,420
		45,000		36,055		(8,599	)		27,456		(9,036	)		18,420
Other
AA rated		5,407		5,171		(112	)		5,059		(147	)		4,912
Noninvestment grade		80,719		71,203		(17,998	)		53,205		(20,845	)		32,360
		86,126		76,374		(18,110	)		58,264		(20,992	)		37,272
Other debt securities		100		100		-			100		(2	)		98
		2,078,379		2,016,835		(367,864	)		1,648,971		(287,511	)		1,361,460

AVAILABLE-FOR-SALE:
U.S. Treasury securities		27,546		26,977		888			27,865					27,865
U.S. Government agencies and corporations:
Agency securities		305,018		305,317		2,702			308,019					308,019
Agency guaranteed mortgage-backed securities		463,849		465,285		8,887			474,172					474,172
Small Business Administration loan-backed securities		636,656		682,179		(26,395	)		655,784					655,784
Municipal securities		244,937		241,444		2,416			243,860					243,860
Asset-backed securities:
Trust preferred securities – banks and insurance
AAA rated		5,947		5,947		(79	)		5,868					5,868
AA rated		141,379		133,313		(9,614	)		123,699					123,699
A rated		149,604		121,394		(5,410	)		115,984					115,984
BBB rated		257,771		180,563		(8,229	)		172,334					172,334
Not rated		26,020		25,003		(9,994	)		15,009					15,009
Noninvestment grade		885,628		769,416		(303,330	)		466,086					466,086
		1,466,349		1,235,636		(336,656	)		898,980					898,980
Trust preferred securities – real estate investment trusts
Noninvestment grade		145,000		92,889		(71,870	)		21,019					21,019
		145,000		92,889		(71,870	)		21,019					21,019
Auction rate securities
AAA rated		178,375		167,037		-			167,037					167,037
A rated		4,300		1,793		-			1,793					1,793
Noninvestment grade		9,800		9,050		-			9,050					9,050
		192,475		177,880		-			177,880					177,880
Other
AAA rated		39,905		36,924		(11,154	)		25,770					25,770
AA rated		5,299		5,299		(1,242	)		4,057					4,057
BBB rated		56,358		53,032		(14,105	)		38,927					38,927
Noninvestment grade		68,805		28,645		(8,055	)		20,590					20,590
		170,367		123,900		(34,556	)		89,344					89,344
		3,652,197		3,351,507		(454,584	)		2,896,923					2,896,923
Other securities:
Mutual funds and stock		189,865		189,865		-			189,865					189,865
		3,842,062		3,541,372		(454,584	)		3,086,788					3,086,788
Total	$	5,920,441	$	5,558,207	$	(822,448	)	$	4,735,759	$	(287,511	)	$	4,448,248

* Ratings categories include entire range. For example, "A rated" includes A+, A and A-. Split rated securities with more than one rating are categorized at the
lowest rating level.

1 Schedule reflects ratings as of April 16, 2009.
2 Other comprehensive income. All amounts reported are pretax.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 19

Nonperforming Assets
(Unaudited)

(In thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2009			2008			2008			2008			2008

Nonaccrual loans	$	1,421,279		$	946,583		$	765,522		$	570,101		$	387,717
Restructured loans		15,333			2,086			2,103			2,145			10,100
Other real estate owned		226,634			191,792			156,817			125,186			36,476
Nonperforming assets, excluding FDIC-supported assets		1,663,246			1,140,461			924,442			697,432			434,293
FDIC-supported assets 1		106,910			-			-			-			-
Total nonperforming assets	$	1,770,156		$	1,140,461		$	924,442		$	697,432		$	434,293

Ratio of nonperforming assets, excluding FDIC-supported assets,
to net loans and leases 2 and other real estate owned		4.00	%		2.71	%		2.20	%		1.66	%		1.09	%
Ratio of nonperforming assets to net loans and leases 2
and other real estate owned		4.17	%		2.71	%		2.20	%		1.66	%		1.09	%

Accruing loans past due 90 days or more, excluding
FDIC-supported assets	$	88,035		$	129,567		$	97,831		$	108,934		$	84,637
Accruing loans past due 90 days or more		112,400			129,567			97,831			108,934			84,637

Ratio of accruing loans past due 90 day or more, excluding
FDIC-supported assets, to net loans and leases 2		0.21	%		0.31	%		0.23	%		0.26	%		0.21	%
Ratio of accruing loans past due 90 day or more to net
loans and leases 2		0.27	%		0.31	%		0.23	%		0.26	%		0.21	%

1 FDIC-supported assets represent assets acquired from the FDIC subject to a loss sharing agreement.
2 Includes loans held for sale.

Allowance and Reserve for Credit Losses
(Unaudited)

	Three Months Ended
(In thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2009			2008			2008			2008			2008
Allowance for Loan Losses
Balance at beginning of period	$	686,999		$	609,433		$	548,958		$	501,283		$	459,376
Allowance associated with purchased
securitized loans and loans sold		-			30			(804	)		1,301			425
Add:
Provision for losses		297,624			285,189			156,606			114,192			92,282
Deduct:
Loan and lease charge-offs		(157,691	)		(185,317	)		(100,241	)		(75,378	)		(53,751	)
Recoveries		5,946			5,601			4,914			7,560			2,951
Net loan and lease charge-offs		(151,745	)		(179,716	)		(95,327	)		(67,818	)		(50,800	)
Reclassification to reserve for unfunded
lending commitments		-			(27,937	)		-			-			-
Balance at end of period	$	832,878		$	686,999		$	609,433		$	548,958		$	501,283

Ratio of allowance for loan losses to net loans
and leases, excluding FDIC-supported assets,
outstanding at period end		2.03	%		1.65	%		1.46	%		1.32	%		1.26	%

Ratio of allowance for loan losses to nonperforming
loans, excluding FDIC-supported assets, at period end		57.98	%		72.42	%		79.39	%		95.93	%		126.01	%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	50,934		$	23,574		$	26,838		$	25,148		$	21,530
Reclassification from allowance for loan losses		-			27,937			-			-			-
Provision charged (credited) against earnings		1,827			(577	)		(3,264	)		1,690			3,618
Balance at end of period	$	52,761		$	50,934		$	23,574		$	26,838		$	25,148

Total Allowance and Reserve for Credit Losses
Allowance for loan losses	$	832,878		$	686,999		$	609,433		$	548,958		$	501,283
Reserve for unfunded lending commitments		52,761			50,934			23,574			26,838			25,148
Total allowance and reserve for credit losses	$	885,639		$	737,933		$	633,007		$	575,796		$	526,431

Ratio of total allowance and reserve for credit losses
to net loans and leases outstanding, excluding
FDIC-supported assets, at period end		2.16	%		1.77	%		1.52	%		1.38	%		1.33	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 20

Loan Balances By Portfolio Type
(Unaudited)
	March 31,		December 31,		September 30,		June 30,		March 31,
(amounts in millions)	2009		2008		2008		2008		2008

Commercial lending:
Commercial and industrial	$	10,958	$	11,447	$	11,351	$	11,247	$	10,626
Leasing		401		431		451		492		494
Owner occupied		8,769		8,743		8,782		8,912		7,910
Total commercial lending		20,128		20,621		20,584		20,651		19,030

Commercial real estate:
Construction and land development		7,265		7,516		7,812		7,891		7,937
Term		6,559		6,196		6,079		5,939		5,569
Total commercial real estate		13,824		13,712		13,891		13,830		13,506

Consumer:
Home equity credit line		2,058		2,005		1,899		1,794		1,674
1-4 family residential		3,817		3,877		3,892		3,914		3,920
Construction and other consumer real estate		666		774		769		852		910
Bankcard and other revolving plans		327		374		360		332		316
Other		358		385		411		436		440
Total consumer		7,226		7,415		7,331		7,328		7,260

Foreign loans		43		43		70		65		59

FDIC-supported assets 1		836
Total loans	$	42,057	$	41,791	$	41,876	$	41,874	$	39,855


1 FDIC-supported assets represent assets acquired from the FDIC subject to a loss sharing agreement and include expected
reimbursements from the FDIC of approximately $159 million.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 21
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)
	Three Months Ended								Three Months Ended
	March 31, 2009								December 31, 2008
(In thousands)	Average			Amount of		Average			Average			Amount of		Average
	balance			interest 1		rate			balance			interest1		rate
ASSETS
Money market investments	$	2,961,701		$	3,376		0.46	%	$	2,253,528		$	7,172		1.27	%
Securities:
Held-to-maturity		1,786,617			28,546		6.48	%		1,905,766			32,157		6.71	%
Available-for-sale		2,643,327			24,285		3.73	%		2,563,569			31,313		4.86	%
Trading account		56,106			571		4.13	%		47,224			598		5.04	%
Total securities		4,486,050			53,402		4.83	%		4,516,559			64,068		5.64	%

Loans held for sale		244,687			2,756		4.57	%		169,050			2,442		5.75	%

Loans:
Net loans and leases excluding FDIC-supported assets 2		41,383,829			579,020		5.67	%		41,769,536			657,498		6.26	%
FDIC-supported assets		504,795			7,043		5.66	%
Total loans and leases		41,888,624			586,063		5.67	%		41,769,536			657,498		6.26	%
Total interest-earning assets		49,581,062			645,597		5.28	%		48,708,673			731,180		5.97	%
Cash and due from banks		1,364,473								1,359,684
Allowance for loan losses		(714,642	)							(627,268	)
Goodwill		1,654,222								1,720,536
Core deposit and other intangibles		126,759								130,703
Other assets		3,387,801								3,254,036
Total assets	$	55,399,675							$	54,546,364

LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	4,529,097			5,799		0.52	%	$	4,368,768			8,008		0.73	%
Money market		17,480,861			68,754		1.60	%		15,331,993			87,709		2.28	%
Time under $100,000		3,103,857			21,793		2.85	%		3,008,645			23,855		3.15	%
Time $100,000 and over		4,753,453			33,486		2.86	%		4,794,768			39,464		3.27	%
Foreign		2,356,293			7,400		1.27	%		2,723,174			14,487		2.12	%
Total interest-bearing deposits		32,223,561			137,232		1.73	%		30,227,348			173,523		2.28	%
Borrowed funds:
Securities sold, not yet purchased		33,469			439		5.32	%		32,930			434		5.24	%
Federal funds purchased and security
repurchase agreements		2,333,675			1,850		0.32	%		2,344,500			4,289		0.73	%
Commercial paper		3,383			14		1.68	%		10,844			81		2.97	%
FHLB advances and other borrowings:
One year or less		935,108			3,717		1.61	%		3,422,389			15,564		1.81	%
Over one year		127,942			1,803		5.72	%		128,557			1,848		5.72	%
Long-term debt		2,659,678			19,872		3.03	%		2,379,407			21,019		3.51	%
Total borrowed funds		6,093,255			27,695		1.84	%		8,318,627			43,235		2.07	%
Total interest-bearing liabilities		38,316,816			164,927		1.75	%		38,545,975			216,758		2.24	%
Noninterest-bearing deposits		9,905,091								9,353,519
Other liabilities		633,420								546,617
Total liabilities		48,855,327								48,446,111
Shareholders’ equity:
Preferred equity		1,583,659								961,072
Common equity		4,932,969								5,110,430
Controlling interest shareholders’ equity		6,516,628								6,071,502
Noncontrolling interests		27,720								28,751
Total shareholders’ equity		6,544,348								6,100,253
Total liabilities and shareholders’ equity	$	55,399,675							$	54,546,364

Spread on average interest-bearing funds							3.53	%							3.73	%
Taxable-equivalent net interest income and
net yield on interest-earning assets				$	480,670		3.93	%				$	514,422		4.20	%

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 22

Capital Ratios
(Unaudited)
		March 31,		December 31,				March 31,
	2009			2008			2008

Tangible common equity ratio		5.26	%		5.89	%		5.73	%
Tangible equity ratio		8.28	%		8.91	%		6.26	%

Risk-based capital ratios1:
Tier 1 risk-based capital		9.33	%		10.22	%		7.64	%
Total risk-based capital		13.23	%		14.32	%		11.83	%

1 Ratios for March 31, 2009 are estimates.



GAAP to Non-GAAP Reconciliation
(Unaudited)
				Three Months Ended
				March 31, 2009
							Diluted
(In millions, except per share data)				Amount			EPS1

Net earnings (loss) applicable to common shareholders				$	(832.2	)	$	(7.29	)
Addback:
Impairment and valuation losses on securities, net of tax					153.9			1.35
Impairment loss on goodwill, net of tax					633.0			5.55
Income (loss) from core banking operations (non-GAAP)				$	(45.3	)	$	(0.39	)


1 Per diluted common share after-tax based on the first quarter weighted average shares.

The first page of this Press Release presents computations of earnings excluding impairment and valuation losses on securities and an impairment loss on goodwill (hereinafter collectively referred to as ‘impairment losses’). The impairment losses are included in financial results presented in accordance with generally accepted accounting principles (GAAP). Zions believes the exclusion of these impairment losses in expressing earnings, including “Income (loss) from core banking operations,” provides a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. This non-GAAP financial measure is also used by management to assess the performance of Zions’ business, because management does not consider these impairment losses to be relevant to ongoing operating results. Management and the Board of Directors utilize these non-GAAP financial measures for the following purposes:

• Evaluation of bank reporting segment performance

• Presentations of Company performance to investors

Zions believes that presenting these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management and the Board of Directors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes these impairment losses does not represent the amount that effectively accrues directly to shareholders (i.e., these impairment losses are a reduction in earnings and shareholders’ equity).

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