Second Quarter 2017
Financial Update
May 8, 2017
2
Forward-Looking Statements; Use of Non-GAAP Financial Measures; Peer Group Key
ASB: Associated Banc-Corp
BAC: Bank of America
BBT: BB&T Corporation
BOKF: BOK Financial Corporation
C: Citigroup, Inc.
CBSH: Commerce Bancshares, Inc.
CFG: Citizens Financial Group, Inc.
CMA: Comerica Incorporated
EWBC: East West Bancorp, Inc.
FHN: First Horizon National Corporation
FITB: Fifth Third Bancorp
FRC: First Republic Bank
HBAN: Huntington Bancshares Incorporated
JPM: JPMorgan Chase & Co.
KEY: KeyCorp
MTB: M&T Bank Corporation
PBCT: People’s United Financial, Inc.
PNC: PNC Financial Services Group
RF: Regions Financial Corporation
SNV: Synovus Financial Corp.
STI: SunTrust Banks, Inc.
UB: Union Bank
USB: US Bank
WBS: Webster Financial
WFC: Wells Fargo & Co.
ZION: Zions Bancorporation
Statements in this presentation that are based on other than historical data or that express the Company’s expectations regarding
future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995.
Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations
regarding future events. Forward-looking statements provide current expectations or forecasts or intentions regarding future
events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor
should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve
significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in
this presentation. Factors that could cause actual results to differ materially from those expressed in the forward-looking
statements include the actual amount and duration of declines in the price of oil and gas, our ability to meet our efficiency and
noninterest expense goals, the rate of change of interest sensitive assets and liabilities relative to changes in benchmark interest
rates as well as other factors discussed in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov).
Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the
result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
This document contains several references to non-GAAP measures, including pre-provision net revenue and the “efficiency ratio,”
which are common industry terms used by investors and financial services analysts. Certain of these non-GAAP measures are key
inputs into Zions’ management compensation and are used in Zions’ strategic goals that have been and may continue to be
articulated to investors. Therefore, the use of such non-GAAP measures are believed by management to be of substantial interest
to the consumers of these financial disclosures and are used prominently throughout the disclosures. A full reconciliation of the
difference between such measures and GAAP financials is provided within the document, and users of this document are
encouraged to carefully review this reconciliation.
3
A Collection of Community Banks
Local decision-making and top-notch service separates Zions from peers
Source: SNL Financial, BEA.gov, Zions’ calculations, using simple average of trailing 10 years of annual GDP
growth by state multiplied by the percent of deposits in each state, most recently available as of 2016. Dollars
of deposits do not sum due to rounding.
Strategic local “ownership” of market
opportunities and challenges
Superior local customer access to
bank decision makers relative to big
national banks
Footprint (by deposit market share) is
located in high growth markets
0%
1%
2%
3%
4%
5%
ZI
O
N
B
O
K
F
B
B
T
EWB
C
FR
C
M
TB K
EY R
F
ST
I
FH
N
SN
V
C
FG
C
M
A
A
SB
PB
C
T
C
B
SH
FI
TB
H
BA
N
Nominal GDP Footprint Growth Comparison
weighted based on deposits
Bank Headquarters Deposits % of Total
Zions Bank Salt Lake City $16B 32%
Amegy Houston $11B 22%
CB&T San Diego $11B 21%
NB│AZ Phoenix $5B 9%
NSB Las Vegas $4B 8%
Vectra Denver $3B 5%
Commerce Seattle $1B 2%
Zions Bancorporation Salt Lake City $52B 100%
4
Superior Brand: Nationally Recognized for Excellence
(1) One of five winning teams, 2015, Zions Bank. (2) Readers of the San Diego Union-Tribune, August 2016, for
six consecutive years; Orange County Register, for three consecutive years. (3) Ranking Arizona Magazine,
2016.
Strong reputation in small business and middle market
banking
Has averaged 16 Greenwich Excellence Awards annually since 2009
(survey inception)
Only 10 banks have averaged more than 10 awards since 2009
Top team of women bankers – American Banker (1)
California Bank & Trust consistently voted Best Bank in San
Diego and Orange Counties (2)
National Bank of Arizona voted #1 Bank in Arizona 14 straight
years (3)
Zions is a Commercially-Oriented Bank
Earning Assets Liabilities and Equity
5
55% of earning assets are commercial loans (vs. 45% for peers), and 38% of
liabilities and equity are funded by noninterest-bearing deposits (vs. 24% for peers)
3%
37%
18%
14%
27%
2%
33%
12%
29%
22%
Cash Commercial
Loans
Commercial
Real Estate
Loans
Consumer
Loans
Securities
38%
45%
5%
11%
1.1%
24%
54%
10% 10% 0.6%
0%
10%
20%
30%
40%
50%
60%
Noninterest-
Bearing
Deposits
Interest-
Bearing
Deposits
Total Debt Common
Equity + AOCI
Pref Equity
Revenue
79%
21%
65%
35%
0%
20%
40%
60%
80%
100%
Net Interest Income Noninterest Income
Note: SNL Financial, data as of 4Q16 for peers, and 1Q17 for ZION. Noninterest income excludes securities gains / losses. Major categories
of assets and liabilities included, and percentages expressed as a sum of the total of the categories; does not include other assets or
liabilities, such as property, equipment, accounts payable, etc. Median calculated by major category; as such, the sum of the median ratios
does not equal 100%. Average period balances used for ZION.
Small Business Lending
Commercial Loans sized $100k - $1M
Commercial Loans sized $100k - $1M
as a percent of total commercial loans
6
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
ZIO
N
B
B
T
H
B
A
N R
F
M
TB
US
B
WF
C
KE
Y
JP
M
CM
A
B
A
C
P
N
C
ST
I
FIT
B
U
B C
Note: Call report data via SNL Financial, as of 4Q16 for peer group, 1Q17 for ZION; peer group shown different
than typical peer group in order to show the position of the largest U.S. banks
$0
$5
$10
$15
$20
$25
$30
WF
C
B
A
C
JP
M
US
B
B
B
T
P
N
C
ZIO
N
M
TB R
F
H
B
A
N
ST
I
KE
Y
CM
A
FIT
B C
U
B
Zions punches above its weight
($ billion)
0.00%
0.50%
1.00%
1.50%
2.00%
BOKF MTB CBSH EWBC ASB ZION CMA WBS BBT CFG STI RF HBAN FITB KEY FHN SNV
0.00%
0.50%
1.00%
1.50%
2.00%
FR
C
C
B
SH
EWB
C
PB
C
T
ST
I
B
B
T
H
BA
N
SN
V
FI
TB K
EY
C
FG
FH
N
ZI
O
N
M
TB
C
M
A
A
SB
B
O
K
F
R
F
Credit Quality
Last 4 Quarter Average
(NPAs + 90DPD) / (Loans + OREO)
Last 12 Months
NCOs / Avg Loans
7
0.00%
0.50%
1.00%
1.50%
2.00%
FR
C
PB
C
T
FH
N
SN
V
EWB
C
M
TB
B
O
K
F
H
BA
N
C
B
SH
A
SB K
EY
C
M
A
C
FG
ZI
O
N
ST
I
R
F
B
B
T
FI
TB
Non-energy
Energy
Note: approximately three quarters of NCOs have been from
energy loans
Source: SNL Financial, data as of 1Q17 for ZION, and 4Q16 for Peer Group.
Note: FRC and PBCT have insufficient history to be included in the 1990-2016 analysis. Survivorship bias: some
banks that may have been included in Zions’ peer group have been excluded due to their failed status.
Through-the cycle losses rank superior to most peers; current ratios reflect energy exposure
Average Annual NCOs / Loans
1990 - 2016
Note: approximately half of NPAs are from energy loans
Non-energy
Energy
Strongest Decile Balance Sheet
Common Equity Tier 1 Capital Ratio Tier 1 Risk-Based Capital Ratio
8%
9%
10%
11%
12%
13%
14%
ZI
O
N
FR
C
C
B
SH R
F
B
B
T
M
TB
FI
TB
C
FG
B
O
K
F
WB
S
FH
N
C
M
A
H
BA
N
K
EY
EWB
C
PB
C
T
ST
I
A
SB
SN
V
Note: Regulatory capital ratios are Basel III.
Source: SNL Financial, data as of 1Q17 for ZION, 4Q16 for the peer group.
8%
9%
10%
11%
12%
13%
14%
ZI
O
N
C
B
SH
B
O
K
F
R
F
C
FG
C
M
A
EWB
C
FR
C
M
TB
WB
S
FI
TB
B
B
T
SN
V
FH
N
PB
C
T
ST
I
H
BA
N
K
EY
A
SB
Capital and reserve ratios are among the strongest, debt ratio the lowest of peers
Debt / Tier 1 Common Capital (CET1) Total Allowance for Credit Losses / Loans
0.0%
0.5%
1.0%
1.5%
2.0%
C
M
A
FI
TB
A
SB
B
O
K
F
R
F
ZI
O
N
C
FG ST
I
C
B
SH
WB
S
M
TB
B
B
T
H
BA
N
EWB
C
SN
V
K
EY
FH
N
PB
C
T
FR
C
0%
50%
100%
150%
200%
250%
EWB
C
ZI
O
N R
F
C
M
A
C
B
SH
SN
V
M
TB ST
I
FH
N
FR
C
C
FG K
EY
B
B
T
FI
TB
H
BA
N
PB
C
T
A
SB
B
O
K
F
WB
S
8
Profitability
9
Zions’ profitability is improving; leading capital ratios disproportionately impact ROTCE
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
EWB
C
C
B
SH
B
B
T
FI
T
B
M
TB
FR
C R
F
ST
I
ZI
O
N
C
M
A
H
B
A
N
SN
V
WB
S
C
FG
FH
N
PB
C
T
A
SB
ZI
O
N
-1
Q
1
6
K
EY
B
O
K
F
Return on Assets
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
EWB
C
B
B
T
H
B
A
N
FR
C
C
B
SH
WB
S
M
TB
FI
T
B
ST
I
A
SB
PB
C
T
R
F
FH
N
SN
V
C
M
A
C
FG
ZI
O
N
K
EY
B
O
K
F
Return on Tangible Common Equity
Source: SNL Financial, data as of 1Q17 for Zions, and 4Q16 for Peer Group.
Return on assets has improved from 0.62% a year ago to 0.88% in 1Q17, at the peer median of 0.88%
Average return on tangible common equity continues to improve, to 8.8% in 1Q17 from 5.6% a year ago
Multi-year objective is to achieve highly competitive balance sheet returns
Net interest income growth continued its
positive trajectory, increasing 8.0% over the
year-ago period
On a linked quarter basis, net interest
income grew by $9 million over 4Q16
Approximately 75% of year-over-year
growth in NII is due to investment portfolio
activity, the remainder is due to lending
activity
Average securities increased in 1Q17 by
$2.5 billion as the Company continued to
reposition the balance sheet
Net Interest Income: Combination of Volume and Rate
Net Interest Income
10
Growth due primarily to securities purchases as well as loan growth
($mm)
$400
$420
$440
$460
$480
$500
1Q16 2Q16 3Q16 4Q16 1Q17
C&I (ex-O&G)
2.9%
Owner Occupied
(ex-NRE)
2.6%
C&D
7.9%
Term CRE (ex-
NRE)
5.1%
1-4 Family
14.2%
National Real
Estate
-15.8%
O&G
-22.0%
Home Equity
8.5%
Other
14.1%
-25%
-15%
-5%
5%
15%
25%
Volume: Loan Growth by Type
11
Healthy loan growth achieved in targeted growth categories
Year-over-Year Loan Growth
Total Loans: +3.2%
Loan growth predominantly in
Residential Mortgage (1-4 Family)
Completed purchases in
consumer-related loans
Declines in National Real Estate
(NRE), and Oil and Gas (O&G)
Over the next four quarters, we expect
moderate total loan growth, driven
by:
Moderate growth in non-O&G
C&I, Construction and Land
Development (C&D), and Term
CRE
Some further attrition in O&G
Continued attrition in NRE
Note: National Real Estate (NRE) is a division of Zions Bank (which is a division of ZB, N.A.) with a focus on small
business loans with low LTV ratios, which generally are in line with SBA 504 program parameters. “Other” loans
includes municipal and other consumer loan categories.
Note: Bubble size indicates relative balance as of 1Q17.
Volume: Active Balance Sheet Management: High Quality Securities Portfolio Growth
12
Short to medium duration portfolio; limited duration extension risk
Total Securities
(end of period balances)
($ billion)
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
1Q16 2Q16 3Q16 4Q16 1Q17
Agency MBS Securities Agency Securities
SBA Loan-Backed Securities Municipal & Other Securities
Added net $2.1 billion of securities
during 1Q17
Added net $7.1 billion of securities
during last 12 months
Securities Portfolio Duration
Current: ~3.2 years
200 bps increase from current
interest rates: ~3.3 years
Expect generally stable investment
portfolio size over the near term
Loans
72%
Securities
25%
Cash
3%
Net Interest Income Drivers
13
December 2016 and March 2017 rate hikes expected to benefit net interest income throughout 2017
Net Interest Margin (NIM)
Avg Earning Asset Mix
Relative to the prior quarter, the 1Q17
NIM was 3.38%, up one basis point
Continued mix shift limits NIM
expansion, but increases NII
Yield on loans increased modestly,
but certain factors partially offset
natural asset sensitivity
Cost of deposits was stable, at 0.10%
3.35% 3.39% 3.36% 3.37% 3.38%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Loan Yield
Securities Yield
Interest Expense
Net Interest Margin
Cash Yield
4Q16
Loans
74%
Securities
22%
Cash
4%
1Q17
Short Term Resets
or Maturities
Percent
of
Loans
Hedges
(swaps,
floors)
Net
Percentage of
Portfolio (1)
Prime and 1M
Libor
47% -6% 41%
2-3M Libor 4% -- 4%
4-12M Libor 4% -- 4%
Other Lns <12
months
11% -- 11%
Longer-term Resets
or Maturities
1-5 years 24% 2% 26%
5+ years 10% -- 10%
(1) Net percentage column sums to 96% due primarily to 4% of total loans that have interest rate floors which are in the money (floor rate >
index+spread rate); the floors have a weighted average "in the money" yield of 60 basis points. After giving effect to potential future rate
hikes, loans with floors would no longer be subject to the floors and would begin to reset with the relevant indices and therefore the 96%
total at March 31, 2017 would increase to/towards 100%.
436
450
466
300
350
400
450
500
Mar-15 Mar-16 Mar-17
Customer-related fee income has
increased at a compound annual
growth rate of approximately 3.3% (2)
Targeted growth includes treasury
management (including commercial
card), mortgage, and wealth
management
Additional focus on growth of
customer-related fee income
launched in late 2014 and early 2015
with the creation of the following
positions:
Chief Banking Officer position
Director of Fee Income
Strategies
Executive Director, Enterprise
Retail Bank
Noninterest Income
14
Continued momentum largely a function of increased focus
(1) Reflects total customer-related noninterest income, which excludes items such as fair value and non-hedge
derivative income, securities gains (losses), and similar such items. See GAAP-to-Non GAAP reconciliation at the
end of the presentation for further details. (2) 1Q15 T6M through 1Q17 T6M
Customer-Related
Fee Income (1)
$ millions
Annualized Trailing 6 Months
Revenue growth continued its positive trajectory, increasing approximately 11% since 4Q14
Revenue is expected to continue to increase due to further purchases of highly liquid assets,
loan growth, and customer-related fee income
Revenue
15
Moving meaningfully higher after a period of stability
90
100
110
120
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
ZION Peer bottom quartile Peer best quartile
Indexed Net Revenue
Source: SNL Financial. Data adjusted to account for major acquisitions. Zions results adjusted for items such as
severance, provision for unfunded lending commitments, securities gains and losses and debt extinguishment
costs. See Appendix for GAAP to non-GAAP reconciliation tables.
Total noninterest expense has grown at a much slower rate than peers, and is
moderately lower than the 4Q14 level
Expect to hold noninterest expense to 2% to 3% growth in 2017
Continue to invest substantially in technology and begin to realize efficiencies
Indexed Noninterest Expense
90
100
110
120
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
ZION Peer bottom quartile Peer best quartile
16
Expense controls have resulted in performance tracking in line with our stated goal
Source: SNL Financial. Data adjusted to account for major acquisitions. Zions results adjusted for items such as
severance, provision for unfunded lending commitments, securities gains and losses and debt extinguishment
costs. See Appendix for GAAP to non-GAAP reconciliation tables.
Noninterest Expense
Efficiency Ratio
Efficiency Ratio (1)
17
Substantial improvement driven by expense control and revenue growth
(1) Defined as noninterest expenses as a percentage of net revenue, adjusted for items such as severance,
provision for unfunded lending commitments, securities gains and losses and debt extinguishment costs. See
Appendix for GAAP to non-GAAP reconciliation table.
The efficiency ratio rose slightly in
the quarter to 65.9% (1Q17),
declining 2.6 percentage points
from 68.5% in the year-ago period
We remain committed to driving
the efficiency ratio to the low 60s
for 2017
Solid progress on the efficiency
ratio while investing substantially
in enabling technology
69.6%
68.5%
64.6%
66.0%
64.5%
65.9%
55%
60%
65%
70%
4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Pre-Provision Net Revenue
18
Steady improvement driven by disciplined expense and balance sheet management
Source: SNL Financial. Data adjusted to account for major acquisitions.
(1) Adjusted for items such as severance, provision for unfunded lending commitments, securities gains and
losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation table.
Indexed Adjusted Pre-Provision Net Revenue (1)
90
110
130
150
170
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
ZION Peer bottom quartile Peer best quartile
Adjusted pre-provision net revenue has strengthened measurably over the past year, up 17%
and up 51% since 4Q14
Persistent improvement driven by focus on expense control, earning asset growth, and higher
return on liquid assets
We expect continued operating leverage through 2017
Continue to Achieve Positive Operating Leverage
Maintain annual mid-single digit loan growth rates while holding strong CRE concentration limits
Moderately reduce the Company’s interest rate sensitivity by:
Active investment portfolio management
Continue to increase market share in residential mortgage
Target mid-single digit growth rates in customer-related fee income
Maintain expense controls: expect noninterest expense to increase between 2% and 3% in FY17 vs.
FY16, while continuing to invest in substantial technology overhaul
Maintain continued alignment of incentive compensation to profitability improvement objectives
Implement Technology Upgrade Strategies
Increase the Return on and of Capital
Improvements in operating leverage lead to stronger returns on capital
Improvements to risk profile and risk management expected to lead to increasing returns of capital
Target: repurchase up to $180 million of common equity from 3Q16 to 2Q17
Completed $135 million through 1Q17
Shares repurchased equaled 4 million, or approximately 1.9% of shares outstanding in since June 30, 2016
Execute on our Community Bank Model – doing business on a “Local” basis
19
2017-2018 Objectives:
Growth Through Simplification and Focus
Increased Payout
Increased the common dividend payout
to an annualized $0.32 per share from
$0.24 per share previously
Target: repurchase up to $180 million of
common equity from 3Q16 to 2Q17
Reduce preferred equity by up to $144
million
Expect improved return on tangible
common equity due to improved
profitability and less excess equity
outstanding
Actively managing capital somewhat
lower to better align with improved risk
profile
20
Hot Topics: Capital Actions: CCAR 2016
Increased common dividend, initiated common share repurchase and actively managing
preferred equity
CCAR 2016 Payout Ratio, To Date
3Q16-1Q17
0%
20%
40%
60%
80%
100%
120%
140%
M
TB R
F
ST
I
B
B
T
K
EY
C
M
A
CF
G
SN
V
P
BC
T
BO
K
F
FI
TB
ZIO
N
H
B
A
N
A
SB
FH
N
CB
SH
EW
B
C
FR
C
ZIO
N
-CC
A
R
2
01
5
Source: SNL Financial and Zions calculations.
Over the past year (measured from 1Q16 to 1Q17), Zions has reduced its net interest income sensitivity in a +200bps
scenario from +16% to +10% in its modeled Slow case, and from +9% to +3% in its modeled Fast case
Much of the reduction in rate sensitivity was due to securities purchases during 2016 and early 2017; as of 1Q17,
interest income from securities was an annualized $160 million more than 4Q15
Zions and the peer median experienced a cumulative 44% and 46% deposit beta during 2004-5 rate cycle,
respectively, although the first 200 bps the beta for Zions and Peers was 19% and 24%, respectively
Hot Topics: Interest Rate Sensitivity and Historical Deposit Beta
21
Zions has partially reduced asset sensitivity in exchange for current income
Source: Company filings. Cumulative full cycle beta includes one full year for deposit costs to catch up to the
changes in the benchmark rates
Modeled Annual Change in a
+200bps Interest Rate Environment(1)
Fast Slow
∆ in NII 3% 10%
Beta of Total
Deposits
46% 32%
(1) 12-month simulated impact using a static-sized balance sheet and a
parallel shift in the yield curve, and is based on statistical analysis relating
pricing and deposit migration to benchmark rates (e.g. LIBOR, U.S.
Treasuries). “Fast” refers to an assumption that deposit rates and volumes
will adjust at a faster speed. “Slow” refers to an assumption that deposit
rates and volumes will adjust at a more moderate speed.
Net Interest Income Sensitivity
0.0
1.0
2.0
3.0
4.0
5.0
6.0
20
04
Q
1
20
04
Q
2
20
04
Q
3
20
04
Q
4
20
05
Q
1
20
05
Q
2
20
05
Q
3
20
05
Q
4
20
06
Q
1
20
06
Q
2
20
06
Q
3
ZION Cost of Total
Deposits
Peer Median Cost of
Total Deposits
FF Target Rate
2004-2005 Rate Hike Cycle Percent
22
Hot Topics: Possible Changes in Tax Rates
Although it remains uncertain as to the outcome of GOP / Trump stated objectives to
lower the corporate tax rate in the U.S., Zions would likely benefit from such a change
0%
5%
10%
15%
20%
25%
30%
35%
40%
KEY FRC HBAN FITB EWBC CMA STI BBT ASB RF FHN CBSH PBCT BOKF WBS CFG ZION MTB SNV
2016 Effective Tax Rate
Zions screens high among peers on effective tax rate
Note: in 1Q17 the effective tax rate was 24.5%, lower than the 33.5% tax rate for FY16. The reduction
was primarily due to a $14 million benefit related to state tax adjustments, and a $4 million benefit
from the implementation of new accounting guidance related to stock based compensation
Excluding the effect of state tax adjustments, and the adoption of new stock-based compensation accounting
guidance, the effective tax rate for FY17 expected to remain 34-35%
Source: SNL Financial
Next 12-Month Outlook Summary (1Q18E, vs. 1Q17A)
23
Outlook Comments
Moderately
Increasing
• Over the next 12 months, we expect continued strong growth from
residential mortgage, moderate growth in C&I and CRE
Moderately
Increasing
• Expect continued increases in loans, continued benefit from recent
rate hikes and limited increase in funding costs
Stable
• Expect loan loss provisions to be generally stable, particularly if
energy prices remain near current levels
Moderately
Increasing
• Customer-related fees excludes securities gains, dividends
Slightly to
Moderately
Increasing
• FY17 adjusted NIE expected to be 2% to 3% higher than FY16A
• Includes continued technology investment
• Excluding the effect of state tax adjustments, and the adoption of new
stock-based compensation accounting guidance, the effective tax rate
for FY17 expected to remain 34-35%
• Expect preferred dividend to be approximately $37 million
• Accounts for expected 1H17 reduction of $144 million of preferred
equity
• Diluted shares may experience some volatility due to the effect of
outstanding warrants and the avg. price of ZION shares.
Customer-Related
Fees
Loan Balances
Net Interest Income
Loan Loss Provision
Tax Rate
Preferred Dividends
& Diluted Shares
Adjusted
Noninterest Expense
Summary Financial Results Table
First Quarter 2017 Key Performance Indicators
Zions Announced Financial Targets
Impact of Warrants
Oil & Gas (O&G) Portfolio Detail
Deep Dive Retail Commercial Real Estate
High O&G Employment Counties: Consumer Credit Scores
Loan Growth by Bank Brand and Loan Type
GAAP to Non-GAAP Reconciliation
24
Appendix
Financial Results
25
Solid and improving fundamental performance
Three Months Ended
(Dollar amounts in millions, except per share data) Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Earnings Results:
Diluted Earnings Per Share $ 0.61 $ 0.60 $ 0.38
Net Earnings Applicable to Common Shareholders 129 125 79
Net Interest Income 489 480 453
Noninterest Income 132 128 117
Noninterest Expense 414 404 396
Pre-Provision Net Revenue (1) 213 217 182
Provision for Credit Losses 18 - 36
Ratios:
Return on Average Assets 0.88 % 0.88 % 0.62 %
Return on Average Common Equity 7.48 % 7.11 % 4.68 %
Tangible Return on Average Tangible Common Equity 8.8 % 8.4 % 5.6 %
Net Interest Margin 3.38 % 3.37 % 3.35 %
Yield on Loans 4.14 % 4.11 % 4.14 %
Yield on Securities 2.24 % 2.04 % 2.30 %
Average Cost of Deposits* 0.10 % 0.10 % 0.10 %
Efficiency Ratio (1) 65.9 % 64.5 % 68.5 %
Effective Tax Rate 24.5 % 33.8 % 31.1 %
Ratio of Nonperforming Assets to Loans, Leases and OREO 1.37 % 1.34 % 1.33 %
Annualized Ratio of Net Loan and Lease Charge-offs to Average Loans 0.43 % 0.25 % 0.35 %
Basel III Common Equity Tier 1 12.2 % 12.1 % 12.1 %
(1) Adjusted for items such as severance, provision for unfunded lending commitments, securities gains and
losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation tables.
* Includes noninterest-bearing deposits.
Strong growth in EPS: Diluted earnings per share increased substantially from the year-ago
period, to $0.61 in 1Q17 from $0.38
Strong growth in adjusted pre-provision net revenue (1): 17% growth over year-ago period
• An 8.0% year-over-year increase in adjusted revenue (1)
• A 3.8% year-over-year increase in adjusted noninterest expense (1)
Tracking on the efficiency initiative:
• Efficiency ratio equaled 65.9% in 1Q17, an improvement from 68.5% in the year ago period
• Committed to “low 60s” for 2017
• Noninterest expense (NIE) increased 4.5% from the year ago period, while adjusted NIE increased
3.8%
• Approximately 1/3 of the YoY increase in adjusted NIE was due to the industry-wide surcharge from the FDIC to
bolster the industry’s deposit insurance reserve ratio
Loans:
• Loans increased $93 million from the prior quarter, an increase of 0.2% in what was generally a soft quarter
for the industry
• Loan yield increased 3 basis points from prior quarter, benefiting from the increase in benchmark interest
rates, partially offset by factors including reduced income from loans purchased from FDIC; reduced
prepayment penalty income; reversal of interest accrued on new non-performing loans, and continued shift
in the composition of loans
Deposits:
• Total deposits increased $239 million from the prior quarter, an increase of 0.4%
• Cost of total deposits was stable from the prior quarter, at 10 basis points
Maintaining overall healthy credit quality: Classified loans declined 7% from prior quarter
26
First Quarter 2017 Key Performance Indicators
Continued PPNR growth and improved profitability
(1) Adjusted for items such as severance, provision for unfunded lending commitments, securities gains and
losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation tables.
(2) All domestic and foreign banks, NSA, as published by the Federal Reserve in the H.8 report
Zions’ Announced Financial Targets
27
On June 1, 2015 Zions announced several financial targets, including:
2H15 FY16 FY17
Hold to
below
$1.58 (2)
billion
Hold to
below
$1.58 (1)
billion
Slightly
above
$1.58 (1)
billion
TBD
≤70% <66% Low 60s TBD
50% >80% 100% TBD
100% -- -- -- --
-- -- -- --
Lower by
~$20
million vs.
2014A
Expected
to beat by
$10mm+
Adjusted
Noninterest Expense1
Gross Cost Savings of
$120 million
Pay Off High Cost
Subordinated Debt
Preferred Equity
Dividends
Efficiency Ratio
(1) Adjusted for items such as severance, provision for unfunded lending commitments, securities gains and
losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation tables.
(2) Reduced by $20 million from original stated target of “less than $1.60 billion,” driven by an accounting
adjustment made in 1Q16 which effectively re-categorized corporate card rewards program expense from a
separate line item to now be netted against its associated revenue.
Zions has two tranches of warrants outstanding (ZIONZ and ZIONW), both of which are currently in the money
Dilution is calculated using the treasury method of accounting, which relies upon the following assumptions:
Warrants are exercised at the beginning of the period
Issuer uses proceeds from exercise to repurchase shares at the average market price during period
Net shares issued = shares issued from warrant exercise – shares repurchased
Impact of Warrants
Dilutive Impact Sensitivity
Reflects potential dilution given various average common stock share prices over any given period
28
Potential dilution is expected to be slight to moderate, depending upon future stock price
(mm)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
-
2
4
6
8
10
12
$35 $36 $37 $38 $39 $40 $41 $42 $43 $44 $45 $46 $47 $48 $49 $50
Dilutive shares (mm) % Dilution
Note: Analysis utilizes current warrant strike price and warrant multiplier
29
Note: Because many borrowers operate in multiple businesses, judgment has been applied in characterizing a borrower as oil and gas-
related, including a particular segment of oil and gas-related activity, e.g., upstream or downstream; typically, 50% of revenues coming
from the oil and gas sector is used as a guide. (1) Total loan and lease balances and the credit quality measures do not include $40 million
of oil and gas loans held for sale at December 31, 2016. (2) Calculated as the ratio of annualized net charge-offs for each respective period
to loan balances at each period end.
Oil & Gas (O&G) Portfolio Detail
(In millions) 1Q17 4Q16 $ Change % Change 1Q16
Loans and leases:
Upstream - exploration and production $ 685 33% $ 733 34% $ (48) -7% $ 859
Midstream – marketing and transportation 603 29% 598 28% 5 1% 649
Downstream – refining 108 5% 137 6% (29) -21% 129
Other non-services 38 2% 38 2% 0 0% 43
Oilfield services 466 23% 500 23% (34) -7% 734
Oil and gas service manufacturing 161 8% 152 7% 9 6% 229
Total loan and lease balances 2,061 100% 2,158 100% (97) -4% 2,643
Unfunded lending commitments 1,886 1,722 164 10% 2,021
Total oil and gas credit exposure $ 3,947 $ 3,880 $ 67 2% $ 4,664
Private equity investments $ 6 $ 7 $ (1) -14% $ 12
Credit Quality Measures(1)
Criticized loan ratio 38.0% 37.8% 37.5%
Classified loan ratio 30.4% 31.6% 26.9%
Nonaccrual loan ratio 14.8% 13.6% 10.8%
Ratio of nonaccrual loans that are current 73.1% 86.1% 90.6%
Net charge-offs, annualized(2) 2.7% 3.0% 5.4%
Credit Quality (Excluding Oil & Gas Portfolio)
30
Key Credit Quality Ratios (Ex-O&G)
Excluding oil and gas lending, credit quality remains very good
Overall stable and healthy credit quality
Key Metrics:
Criticized loans equaled 3.0% of loans,
declining slightly from 3.1% in 4Q16
Classified loans equaled 2.1% of loans
NPAs remained stable at 0.69% of
loans
Annualized NCOs equaled 0.32% of
average loans
Allowance for credit losses remains strong at
1.05% of total loans and leases
1.5x coverage of NPAs
3.3x coverage of annualized NCOs
2017 non-O&G NCOs may increase slightly
from 2016 results as recoveries may not be
as substantial
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Criticized / Loans Classifieds / Loans
Nonperforming Assets / Loans Net Charge-offs / Loans
Note: Net Charge-offs/Loans ratio is annualized for all periods shown. Oil and gas loans discussed in greater
detail later in this presentation.
Oil & Gas (O&G) Credit Quality
31
O&G Key Credit Quality Ratios
O&G credit quality remains challenged, although active management and the recovery in
commodity prices has aided in the portfolio’s overall improvement
Relative to December 31, 2016:
Criticized O&G loans declined by $32
million, the fourth consecutive linked-
quarter dollar decrease since the cycle
began
Classified O&G loans declined by $55
million, also the third consecutive
linked-quarter dollar decrease since
2014
O&G NPAs increased by $11 million
Annualized NCOs equaled 2.7% of
average loans
More than $1 billion of equity raised in
1Q17 to O&G portfolio companies, more
than double the level achieved in 4Q16
Allowance for credit losses remains strong,
at 8.6% of O&G balances
0.6x coverage of NPAs
3.2x coverage of annualized NCOs
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1Q16 2Q16 3Q16 4Q16 1Q17
Criticized / Loans Classifieds / Loans
Nonperforming Assets / Loans Net Charge-offs / Loans
Note: Net Charge-offs/Loans ratio is annualized for all periods shown.
O&G Loan Loss Expectation
O&G loan losses are expected to decline substantially over the next 12 months as
compared to the last 12 months (1)
Most of the expected loss is likely to come from services loans
57% of classified O&G loans are from services loans
75% of O&G losses incurred since Sep 30, 2014 are from services loans
Healthy sponsor support has resulted in loss levels that were lower than otherwise would have
been experienced
Improved borrower and sponsor sentiment in late 2016 and early 2017 vs early 2016
Strong Reserve Against O&G Loans
Zions’ O&G allowance for credit losses is:
9% of O&G loan balances
23% of criticized O&G loan balances
32
Oil & Gas Loss Outlook and Reserve
The outlook is improving for the O&G portfolio
(1) Assuming oil and gas commodity prices remain relatively stable; LTM NCOs were $108 million.
Deep Dive: Retail Commercial Real Estate
33
78% of portfolio is neighborhood / stand alone retail
Retail CRE totals $1.85 billion
Average loan balance: $1.8 million
Granular tenant mix:
Top ten tenants are < 20% of the total exposure
Minimal exposure to national tenants with
announced bankruptcies
Significant guarantor support on construction, rebalance
provisions on term
93% of portfolio is in ZB, NA footprint
Portfolio credit quality improving; minimal NPAs
CRE Retail Summary Q1-16 Q1-17 Delta
$ Balance $1.89B $1.85B ($33MM)
Retail as % of Total CRE 17.5% 16.5% -1.0%
% Criticized 2.6% 0.8% -1.8%
% Construction 9.2% 7.8% -1.4%
By Property Type (% of Retail Portfolio)
Neighborhood Strip Center 44% 49% +5%
Stand Alone / Single Tenant 33% 29% -4%
Regional Shopping Center 23% 22% -1%
Current Retail Portfolio Metrics
Wtd. Avg. LTV(1) 54%
Wtd. Avg. DSC (1) 2.00x
(1) Term CRE Retail, Balances > $500M (94% of total term)
0.0%
1.0%
2.0%
3.0%
4.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Retail CRE Key Credit Quality Ratios
Criticized / Loans Classified / Loans
Non Performing / Loans
Deep Dive: Retail Commercial & Industrial Loans
34
The portfolio is stable, with no material exposure to national brick-and-mortar retailers
Retail Commercial and Industrial loans1 total $2.2B
and represent exposure to the overall retail industry;
More insulated (80%) includes auto dealers,
gas stations, grocery stores, building material
suppliers, and similar companies.
Less insulated (20%) includes those providing
products widely available both on-line and
through traditional brick and mortal channels.
No material exposure to national, legacy brick and
mortar retailers.
Majority of borrowers defined as less insulated are
smaller, niche companies, with strong on-line
distribution channels.
Over the past year, total exposure increased 3%;
More Insulated loans increased by 5%
Less Insulated loans decreased by 2%.
Portfolio credit quality deteriorated slightly during
2016, however has generally improved the last two
quarters.
C&I Retail Loan by Segment
0.0%
1.0%
2.0%
3.0%
4.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Criticized / Loans Classified / Loans Non Performing / Loans
Retail C&I Key Credit Quality Ratios
More Insulated
Less Insulated
1 Defined by NAICS codes
35 Note: Data as of 4Q16, published semi-annually.
The Derivative Effect: Zions’ Commercial Real Estate Portfolio in Texas
Houston is approximately 3/5 of total Texas exposure. Construction and Land Development
loans in Houston have declined by more than 80% since prior credit cycle
$0 $100 $200 $300
Office
Hospitality
Industrial
Not RE Secured
Land
Retail
Other
Multifamily
Commercial Construction
($500mm outstanding)
Houston (52%) TX-not Houston (48%)
$0 $100 $200
Land
Other
Single Family Housing
Residential Construction
($250mm outstanding)
Houston (69%) TX-not Houston (31%)
$0 $100 $200 $300 $400 $500
Hospitality
Other
Industrial
Office
Retail
Multifamily
Commercial Term
($1,700mm outstanding)
Houston (54%) TX-not Houston (46%)
Commercial Real Estate Portfolio Summary
36
Credit Quality Remains Strong
Note: Data as of 4Q16, published semi-annually.
CRE Balances up 10% YoY, Delinquencies
and nonaccruals improved YoY, Classifieds
stable
Criticized balance by type (Total CRE: 2.5%)
Commercial Construction – 6.1%
Home Builder Construction – 0.0%
CRE Term – 2.2%
32% of total CRE in CA, 22% in TX, 14% in
UT/ID, 12% in AZ
2016 Dec
($bn)
2016 Sep
($bn)
QoQ ($MM)
2015 Dec
($bn)
YoY
Term Balance $9.3 $9.3 $25 $8.5 9.90%
Construction Balance $2.0 $2.1 -$120 $1.9 8.90%
Delinquencies 0.26% 0.61% -36bp 0.32% -6bp
Non-Maturity Delinquencies 0.11% 0.18% -6bp 0.20% -9bp
Nonaccrual Loans 0.32% 0.27% +5bp 0.46% -14bp
% of Nonaccruals Current 52.0% 63.3% -11.3% 56.3% -4.3%
Classifieds (% of loans) 1.30% 1.26% +4bp 1.37% -7bp
Net Charge-Offs TTM ($MM) -1.7 (-2 bp) -7.1 (-7 bp) +5bp -14.8 (-15 bp) +13bp
0% 5% 10% 15% 20% 25% 30% 35%
Washington
Colorado
Other
Nevada
Arizona
Utah/Idaho
Texas
California
CRE Balances by Collateral Location
Term CRE (82%) Commercial Construction (11%) Residential Construction (7%)
CRE Term Portfolio
37
Strong CRE metrics and conservative structures, Houston emphasized
Houston Term: DSCR’s and LTV’s are in line with
overall term portfolio. Adverse migration of loan
grades is occurring; portfolio benefits from
conservative advance rates, > 1.0 DSCR’s and
guarantor support
All Term: continued portfolio diversity; ¾ is
Office, Retail, Multifamily and Industrial
Note: Collateral type as of 4Q16; DSCR and LTV as of 3Q16. DSCR excludes loans < $500M,
many < 1.0 DSCR term loans maintain pass grade status due to guarantor support;
published semi-annually
CRE Term by Collateral Type
($9.3 billion)
0%
10%
20%
30%
40%
50%
60%
<1.0 <1.25 <1.50 <1.75 <2.0 2.0+
Term CRE - DSCR
All CRE Houston Only
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
<50% <60% <70% <80% <90% <100% 100%+
Term CRE - LTV
All CRE Houston Only
Office, $2.1 ,
23%
Multifamily,
$1.9 , 20%
Retail, $1.7 ,
19%
Industrial,
$1.3 , 14%
Other, $0.9 ,
10%
Hospitality,
$0.7 , 8%
Hospital/Med
. Centers,
$0.3 , 3%
Rec./Rest.,
$0.2 , 2%
Unsecured
CRE, $0.1 ,
1%
CRE Construction Portfolio
38
Balanced, performing portfolio
Note: Data as of 4Q16, published semi-annually.
Diversified construction portfolio with 37%
Homebuilder Residential, 63% Commercial
Commercial construction is 6.1% criticized – some
stress in Houston CRE. Homebuilder Residential
performing well
YoY construction growth of 9.6%. Construction as a
% of total loans is < 5%
Construction by Collateral Type
($2.0 billion)
$7.5
$5.6
$3.5
$2.3 $1.9 $2.2 $2.0 $1.8 $2.0
$6.2
$7.3
$7.7
$7.9
$8.1 $8.0 $8.1 $8.5 $9.3
20%
22%
24%
26%
28%
30%
32%
34%
$0
$2
$4
$6
$8
$10
$12
$14
$16
YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016
Bi
llio
n
s
CRE: Maintaining Construction Discipline
CRE Const. and Land Dev. CRE Term CRE as a % Of Total Net Loans
Homebuilder
Residential,
$0.75 , 37%
Multifamily,
$0.38 , 19%
Other, $0.29
, 15%
Land,
$0.15 , 7%
Retail, $0.14 ,
7%
Office, $0.13
, 6%
Industrial,
$0.11 , 5%
Hospitality,
$0.07 , 4%
Takeaways:
Consumer loans from high O&G employment counties performing in line with overall
consumer portfolio; nearly all of these consumer loans are with Amegy (96%) located in
Texas, primarily in the Houston area
82% of consumer loans in high O&G counties are residential mortgage and home equity lines
Consumer FICO scores are stable in counties with high O&G employment, with some
improvement in the 5th and 10th percentiles
39
High O&G Employment Counties: Consumer Credit Scores
Consumer credit score deterioration has not been substantial in high O&G counties
Credit Score (FICO) Migration in High Oil & Gas Employment Counties
Note: Data as of 4Q16, published semi-annually.
Percentile HOGECs Others HOGECs Others HOGECs Others HOGECs Others HOGECs Others
5% 619 647 605 640 14 7 595 636 24 11
10 657 680 650 678 7 2 645 677 12 3
50% 760 776 761 777 -1 -1 762 780 -2 -4
Data includes consumer loans with FICO scores refreshed during the quarter shown.
2016 Q4 2015 Q4 1-Year Difference 2014 Q4 2-Year Difference
40
Loan Growth by Bank Brand and Loan Type
Note: National Real Estate (NRE) is a division of Zions Bank with a focus on small business loans with low LTV
ratios, which generally are in line with SBA 504 program parameters. “Other” loans includes municipal and
other consumer loan categories. Totals shown above may not foot due to rounding.
Year over Year Loan Growth (1Q17 vs. 1Q16)
(in millions) Zions Bank CB&T Amegy NBAZ NSB Vectra CBW
ZBNA
Other
Total
C&I (ex-Oil & Gas) (23) 104 22 92 41 36 54 - 326
Owner occupied (ex-NRE) (1) 47 73 33 (34) 20 11 - 147
CRE C&D 43 77 (28) (2) 28 17 20 - 155
CRE Term (ex-NRE) 126 (102) 129 101 55 31 66 - 407
1-4 Family 61 (6) 392 24 (13) 50 (0) 260 768
National Real Estate (346) - - - - - - - (346)
Energy (Oil & Gas) (9) (0) (552) 1 - (22) - - (582)
Home Equity (10) 46 51 30 29 59 1 - 206
Other 63 59 34 31 21 40 (4) 1 243
Total net loans (98) 224 121 308 127 232 149 261 1,323
(in millions) Zions Bank CB&T Amegy NBAZ NSB Vectra CBW
ZBNA
Other
Total
C&I (ex-Oil & Gas) (52) 22 22 (22) 10 4 9 - (7)
Owner occupied (ex-NRE) (16) 31 58 (9) (4) (4) 1 - 56
CRE C&D 3 45 52 18 8 (27) 6 - 104
CRE Term (ex-NRE) 44 (158) (54) (68) (22) 48 8 - (202)
1-4 Family (2) (14) 140 4 (9) 12 1 163 295
National Real Estate (81) - - - - - - - (81)
Energy (Oil & Gas) (18) - (78) 1 - (3) - - (97)
Home Equity (19) (4) 8 (0) (1) 8 1 - (7)
Other 2 6 (17) 9 4 28 (2) 1 31
Total net loans (138) (73) 130 (67) (14) 67 23 164 92
Linked Quarter Loan Growth (1Q17 vs. 4Q16)
41 (1) In Q1 2016, to be consistent with industry practice, the Company reclassified its bankcard rewards expense
from “Other noninterest expense” to “Other service charges, commissions and fees”, offsetting this expense
against associated noninterest income. Prior period amounts have also been reclassified.
GAAP to Non-GAAP Reconciliation
(Amounts in millions) 1Q17 4Q16 3Q16 2Q16 1Q16
Efficiency Ratio
Noninterest expense (GAAP) (1) (a) $ 414 $ 404 $ 403 $ 382 $ 396
Adjustments:
Severance costs 5 1 - - 4
Other real estate expense - - - (1) (1)
Provision for unfunded lending commitments (5) 3 (3) (4) (6)
Debt extinguishment cost - - - - -
Amortization of core deposit and other intangibles 2 2 2 2 2
Restructuring costs 1 3 - - 1
Total adjustments (b) 3 9 (1) (3) -
Adjusted noninterest expense (non-GAAP) (a) - (b) = (c) 411 395 404 385 396
Net Interest Income (GAAP) (d) 489 480 469 465 453
Fully taxable-equivalent adjustments (e) 8 8 7 6 5
Taxable-equivalent net interest income (non-GAAP) (d) + (e) = (f) 497 488 476 471 458
Noninterest income (GAAP) (1) (g) 132 128 145 126 117
Combined income (f) + (g) = (h) 629 616 621 597 575
Adjustments:
Fair value and nonhedge derivative income (loss) - 7 - (2) (3)
Equity securities gains (losses), net 5 (3) 8 3 -
Total adjustments (i) 5 4 8 1 (3)
Adjusted taxable-equivalent revenue (non-GAAP) (h) - (i) = (j) 624 612 613 596 578
Pre-provision net revenue (PPNR), as reported (h) – (a) $ 215 $ 212 $ 218 $ 215 $ 179
Adjusted pre-provision net revenue (PPNR) (j) - (c) $ 213 $ 217 $ 209 $ 211 $ 182
Efficiency Ratio (1) (c) / (j) 65.9 % 64.5 % 65.9 % 64.6 % 68.5 %