barclapresentation.htm

Barclays Capital

Global Financial Services Conference

15 September 2009 ■ New York

Forward-Looking Statements

This presentation contains statements that relate to the projected performance of
Zions Bancorporation and elements of or affecting such performance, including
statements with respect to the beliefs, plans, objectives, goals, guidelines,
expectations, anticipations and estimates of management. These statements
constitute forward-looking information within the meaning of the Private Securities
Litigation Reform Act. Actual facts, determinations, results or achievements may
differ materially from the statements provided in this presentation since such
statements involve significant known and unknown risks and uncertainties. Factors
that might cause such differences include, but are not limited to: competitive
pressures among financial institutions; economic, market and business conditions,
either nationally or locally in areas in which Zions Bancorporation conducts its
operations, being less favorable than expected; changes in the interest rate
environment reducing expected interest margins; changes in debt, equity and
securities markets; adverse legislation or regulatory changes; and other factors
described in Zions Bancorporation’s most recent annual and quarterly reports. In
addition, the statements contained in this presentation are based on facts and
circumstances as understood by management of the company on the date of this
presentation, which may change in the future. Zions Bancorporation disclaims any
obligation to update any statements or to publicly announce the result of any
revisions to any of the forward-looking statements included herein to reflect future
events, developments, determinations or understandings.

A Collection of Great Banks

• Annual pretax, pre-provision earnings of ~$950 mm-to-
$1billion

– NIM: 4.09%, ranked #2 of regional banks/peers.

– One quarter of deposits are non-interest bearing (rank: #3 of peers)

• Strong allowance for credit loss: 3.2% of loans

• Tier 1 Common / Risk-weighted assets: $1.1 billion in
excess of 4%.

• Successfully won bids on four FDIC assisted
transactions.

*Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Zions’ Strengths

• Rising NPAs, to 4.7% of loans from 4.0% in prior
quarter

– Total delinquent + NPA was up 4%, decelerating sharply from the prior
quarter rate

• YTD net charge-off rate of 2.4%

• Continued securities impairments (OTTI), primarily on
bank/insurance CDOs - $42.0 million in 2Q

Zions’ Challenges

Footprint Population Growth Estimates from SNL Financial (2009-2014)

Our Growth Engine

Agenda

Key Drivers Going Forward

–Net Interest Margin

–Credit Quality

–Securities Portfolio

–Capital

Outlook Summary

Source: SNL

Note: Peer group includes U.S. regional banks with assets greater than $20 billion
and less than $200 billion plus footprint competitors WFC and USB.

Net Interest Margin
(Regional Bank Peers)

Note: Peer group includes U.S. regional banks with assets greater than $20 billion
and less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

• Continued strength in DDA balances, strong yields on new
loan production

• Further reducing negative spread assets - $500 million to $1
billion, or about 1%-2% of earning assets.

• As discussed on earnings call, 3Q NIM likely to experience
pressure due to capital actions

– Swap gain amortization eliminated (was about 7 bps in 2Q09 NIM)

– Introduction of discount accretion (interest expense) from sub debt
tender - about $380 million total over about six years; approximately
$60 million per year, or 12-13 bps of pressure, beginning in 3Q09.

• Accelerated discount accretion from sub debt tender if/when
bondholders exercise option to convert to preferred stock -
NIM effect likely volatile, using Form 8-k to provide
transparency on issue.

NIM Moving Pieces

• Fixed-rate loans:

– 25% of portfolio

– Duration of about 1.1 years

• Variable-rate loans:

– 75% of portfolio

– Continual reduction of interest rate swaps (increasing asset
sensitivity)

• 22% of total loans have floors that are in-the-money

• Non-interest bearing deposits to earning assets is 22%
(rank #1 among peers; peer median 16%)

Peer data source: SNL

Note: Peer group includes U.S. regional banks with assets greater than $20 billion
and less than $200 billion plus footprint competitors WFC and USB.

Asset Sensitivity

Agenda

Key Drivers Going Forward

–Net Interest Margin

–Credit Quality

–Securities Portfolio

–Capital

Outlook Summary

48%

33%

19%

Loan Portfolio Composition
(6/30/2009)

CRE Portfolio Change Summary
(Dollar Change from 4Q07 to 2Q09 in billions)

Loan Portfolio Performance
(6/30/2009)

Zions NPA/Asset ratio excludes FDIC-supported assets

Note: Peer group defined as U.S. bank holding companies with assets > $10 billion.

Peer data source: SNL

Note: Zions’ ratio excludes FDIC-supported assets

NPAs as a % of Total Assets
(Large Bank Peers)

Note: Zions’ ratio excludes FDIC-supported assets

Delinquency Trends
(Large Bank Peers)

Note: Peer group defined as U.S. bank holding companies with assets > $10 billion.

Peer data source: SNL

Note: Zions’ ratio excludes FDIC-supported assets

NPAs & Delinquency Trends
(Large Bank Peers)

*Annualized

Note: Peer group defined as U.S. bank holding companies with assets > $10 billion.

Peer data source: SNL; 2Q09 peer data estimated from SNL & financial releases

Credit Performance Summary

Compared to Large Banks, Zions has

• Relatively

– Larger, secured commercial portfolio

– Smaller, high performing consumer
portfolio

• Results in

– Higher Non Performing Assets, but

– Lower net charge-offs

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200 billion plus
footprint competitors WFC and USB. Source: SNL

*The C&I Loans category excludes the impact of Flying J. This $47.5 million loan was charged-off in 2Q09, but
ZION anticipates a substantial recovery on this loan in 2010.

Percentage of Zions
Total Loans

Net Charge Offs
(Regional Bank Peers)

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

Reserves & Net Charge Offs
(Regional Bank Peers)

Credit Quality
Outlook

• Weakness in residential construction activity
and land values in the Southwest expected to
persist through 2009

• Credit problems spreading to other geographies
and loan categories as economy weakens

• Continued elevated levels of NPAs, provisions
and net losses

• Continued ALLL build likely in 3Q and 4Q09,
but declining compared to 2Q

Agenda

Key Drivers Going Forward

–Net Interest Margin

–Credit Quality

–Securities Portfolio

–Capital

Outlook Summary

Bank & Ins. Trup CDOs 3% of Assets

• Credit-related OTTI losses $42.0 million in 2Q09

• Noncredit-related OTTI on securities of $29.5 million in
2Q09 recognized in OCI

• Future near-term OTTI losses likely stable

– Driven by bank deferrals, defaults, and expected probabilities of
default (PDs)

– Non-investment grade securities with OTTI or that are PIKing
(payment in kind): $374 million remaining value not in OCI

– If all these securities were written to zero, Zions would incur an
adverse impact to TCE of approximately $240 million

Investment Securities Performance 2Q09

Agenda

Key Drivers Going Forward

–Net Interest Margin

–Credit Quality

–Securities Portfolio

–Capital

Outlook Summary

	2Q08	1Q09	2Q09
Tangible Common Equity	5.51%	5.26%	5.66%
Tier 1 Risk Based	7.45%	9.43%	9.66%
Total Risk Based	11.58%	13.39%	12.87%

Capital Ratios

Outlook Summary

• Continued elevated levels of credit losses, loss
provisions, and some reserve build in a weak
economy

• Future OTTI losses likely stable, possibly
declining

• Continued strong core net interest margin, but
volatile due to capital actions

• Reduced dividend and asset levels will help
preserve capital ratios

Outlook Summary

Long-term outlook remains strong when
economy begins to recover

– Best long-term growth markets

– Sustainable competitive advantage in
operating model

– Superior risk-adjusted NIM through the
business cycle

Barclays Capital

Global Financial Services Conference

15 September, 2009

New York

Appendix

	Million	$ Per Share
Net Income To Common	($41)	($.35)
Goodwill Impairment	$0	$0
Valuation Loss on Purchased Securities*	($12)	($.10)
OTTI Impairment on Securities	($42)
Provisions For Credit Losses	$763
Net Charge-offs	$347
OREO Expense	$24
Core Pretax Income (ex provision, impairment, OREO exp, & non-recurring items)	$263

*This includes purchases from Lockhart and re-purchased auction rate securities

Q2 2009 Earnings Highlights

Zions NPA/Asset ratio excludes FDIC-supported assets

NPAs as a % of Total Assets
(Regional Bank Peers)

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

90 + Days Delinquent Still Accruing / Total Net Loans

Delinquency Trends
(Regional Bank Peers)

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

NPAs + Greater than 90 Days Delinquent / Loans + OREO

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

NPAs & Delinquency Trends
(Regional Bank Peers)

*Annualized

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

Net Charge-offs as % of Loans*
(Regional Bank Peers)

CRE Portfolio Composition
Loans by Product Type and Location - 6/30/09

CRE Portfolio Change
(Dollar Change from 4Q07 to 2Q09 in $000s)