EX-99.1 3 a2085806zex-99_1.htm EXHIBIT 99.1
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EXHIBIT 99.1

***FOR IMMEDIATE RELEASE***

FOR: ZIONS BANCORPORATION
One South Main, Suite 1134 Salt Lake City, Utah
Harris H. Simmons
President/Chief Executive Officer

Contact: Clark Hinckley
Tel: (801) 524-4787
July 17, 2002

ZIONS BANCORPORATION REPORTS 2002 SECOND
QUARTER EARNINGS OF $0.89 PER DILUTED SHARE

SALT LAKE CITY, July 17, 2002—Zions Bancorporation ("Zions" or "the Company") (Nasdaq: ZION) today reported second-quarter net income of $82.1 million, or $0.89 per diluted share. This net income and earnings per share performance represented an increase of 11.5% and 12.7%, respectively, over the $73.6 million, or $0.79 per diluted share earned for the second quarter of 2001. Income for the second quarter of 2001, as adjusted for the add back of goodwill amortization (under Statement of Financial Accounting Standards ("SFAS") No.142) not included in 2002 earnings, was $82.3 million, or $0.88 per share. Net income for the second quarter of 2002 compared to income, as adjusted, for the second quarter of 2001 decreased 0.21% and per share increased 1.1%.

During the second quarter the Company completed all goodwill impairment testing required under the provisions of SFAS No.142. An impairment loss of $32.4 million, net of an income tax benefit of $2.7 million, was recognized as a cumulative effect of a change in accounting principle in year-to-date earnings. The impairment loss relates to impairment in carrying value as of January 1, 2002 of the Company's investments in certain e-commerce subsidiaries. The remaining investment in subsidiaries found to be impaired was $31.7 million as of June 30, 2002. Year-to-date net income for 2002 was $129.3 million or $1.40 per share including the cumulative effect of the change in accounting principle of $32.4 million ($0.35 per share). Year-to-date income for 2002 before the cumulative effect of the change in accounting principle was $161.7 million, or $1.75 per share. Year-to-date income for 2001, before the cumulative effect of a change in accounting principle (for SFAS No. 133) and adjusted for the add back of goodwill amortization, was $161.2 million, or $1.77 per share.

As previously announced, during the second quarter the Company completed the sale of Digital Signature Trust ("DST") in exchange for a 33% ownership interest in Identrus. Included in the performance for the second quarter of 2002 are after-tax operating losses at DST of $1.5 million ($.02 per share) and equity in after-tax losses of Identrus of $0.7 million ($.01 per share). DST losses for the second quarter include $0.9 million ($0.01 per share) of after-tax expenses incurred to complete the sale. Also included in the performance for the second quarter of 2002 are after-tax operating losses of $0.03 per share from Lexign, Inc., which was acquired in July 2001.

Operating cash earnings for the second quarter were $84.8 million or $0.92 per diluted share, an increase of 0.17% and 1.1%, respectively, over the $84.6 million or $0.91 per diluted share earned in the same quarter last year. Operating cash return on equity ("ROE") was 23.0% and operating cash return on assets ("ROA") was 1.34%. The operating cash efficiency ratio was 59.3% for the second quarter compared to 58.0% for the first quarter of 2002 and 57.8% for the second quarter of 2001. Year-to-date 2002 operating cash earnings were $168.2 million or $1.82 per share compared to $166.6 million or $1.82 per share earned during the same period last year. Year-to-date operating cash ROE for 2002 was 23.3% and operating cash ROA was 1.35%. Operating cash earnings are earnings before amortization of core deposit and other intangible assets, merger-related charges, goodwill allocated to the carrying value of branches sold, and the cumulative effect of changes in accounting principles. Operating cash performance ratios are determined as if these items have not been recognized in the financial statements.

"We are pleased with the continued solid loan growth and the significant improvement in core deposit growth," remarked Harris H. Simmons, Chairman and Chief Executive Officer, noting that core

deposit growth was in line with the historically strong loan growth of the Company. "Top line revenue growth remains solid, and we are especially pleased with the improvement in asset quality indicators," Simmons added. "However, we clearly recognize the need to reduce both the absolute level and future growth rate of operating expenses, and are implementing measures to accomplish this."

Tangible Equity Ratio Remains Stable

During the second quarter of 2002, Zions repurchased 561,492 shares of common stock at an average price of $55.49 per share. Year-to-date the Company has repurchased 1,042,980 shares at an average price of $54.13. Weighted average common and common equivalent shares outstanding for the second quarter of 2002 was 92,628,770, compared to 92,813,828 for the first quarter of 2002 and 93,210,378 for the second quarter of 2001. The Company's tangible common equity ratio was 6.03% at June 30, 2002 compared to 6.03% at March 31, 2002 and 5.98% at December 31, 2001.

Double Digit Loan Increase and Strong Net Interest Income Growth

At June 30, 2002, on-balance-sheet and sold and serviced loans increased 14.9% to $21.0 billion and deposits increased 9.4% to $18.8 billion over the balances reported one year ago. Core deposits, which exclude time deposits over $100,000 increased 11.5%. For the quarter, taxable-equivalent net interest income increased 10.0% to $264.3 million compared to the second quarter of 2001. For the second quarter of 2002, the net interest margin was 4.61%, compared to 4.70% for the first quarter of 2002, and 4.63% for the second quarter of 2001.

Noninterest Income

For the second quarter of 2002, noninterest income increased $9.9 million or 10.6% to $104.0 million compared to the second quarter of 2001. The increase included growth in service charges on deposit accounts of 15.7% and other service charges, commissions and fees of 15.4%.

Noninterest Expense

For the second quarter of 2002, noninterest expense increased $25.7 million or 13.0% to $222.9 million from the second quarter of 2001 as adjusted for the add back of goodwill amortization. The increase included growth in salaries and benefits of $16.7 million or 15.6%.

Improved Asset Quality

The ratio of nonperforming assets to total loans and other real estate was 0.63% at June 30, 2002, compared to 0.73% at March 31, 2002 and 0.53% at June 30, 2001. For the second quarter of 2002, net loan and lease losses were $15.4 million or 0.34% annualized of average loans, compared to $14.5 million or 0.33% annualized for the first quarter of 2002 and $8.6 million or 0.21% annualized for the second quarter of 2001. At $264.4 million on June 30, 2002, the allowance for loan losses was 1.43% of total loans and 260% of non-performing loans.

Provision for Loan Losses

For the second quarter of 2002 the provision for loan losses was $15.7 million compared to $12.2 million provided during the second quarter of 2001. Year-to-date for 2002 the provision was $33.8 million compared to $25.0 million year-to-date 2001. The provision reflects management's evaluation of its various portfolios, statistical trends and other economic factors, and its desire to maintain a strong coverage of non-performing assets in a continued uncertain economic environment in the markets in which it operates.

Conference Call

Zions will host a conference call to discuss these second quarter results at 5:30 p.m. EDT this afternoon (July 17, 2002). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-399-0126, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from approximately 8:30 p.m. EDT on Wednesday, July 17 through midnight EDT on Tuesday, July 23, by dialing 1-800-642-1687 and entering the conference ID number (4620114). The webcast of the conference call will also be archived and available through Wednesday, July 31.

About Zions Bancorporation

Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Under local management teams and community identities, Zions operates over 400 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah and Washington. In addition, Zions is a national leader in SBA lending, public finance advisory services, agricultural finance and electronic bond trading. The Company is included in the S&P 500 Index. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

This news release contains statements regarding the projected performance of Zions and its subsidiaries. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results of achievements may differ materially from the projections provided in this release since such projections 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 increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

ZIONS BANCORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
	2002			2001			% Change		2002			2001			% Change
	(In thousands, except per share and ratio data)
EARNINGS
Taxable-equivalent net interest income	$	264,282		$	240,151		10.05	%	$	525,587		$	460,860		14.04	%
Net interest income		259,038			235,018		10.22	%		515,253			450,855		14.28	%
Noninterest income		104,014			94,074		10.57	%		199,812			205,934		(2.97	)%
Provision for loan losses		15,705			12,235		28.36	%		33,795			25,007		35.14	%
Noninterest expense		222,861			206,091		8.14	%		435,268			409,581		6.27	%
Income before income taxes		124,486			110,766		12.39	%		246,002			222,201		10.71	%
Income taxes		42,986			38,954		10.35	%		85,021			80,092		6.15	%
Minority interest		(575	)		(1,783	)	(67.75	)%		(725	)		(3,387	)	(78.59	)%
Cumulative effect of change in accounting principle		—			—					(32,369	)		(7,159	)	352.14	%
Net income		82,075			73,595		11.52	%		129,337			138,337		(6.51	)%
Income before cumulative effect, as adjusted(1)		82,075			82,250		(0.21	)%		161,706			161,246		0.29	%
Net income, as adjusted(1)		82,075			82,250		(0.21	)%		129,337			154,087		(16.06	)%
PER COMMON SHARE
Net income (diluted)		0.89			0.79		12.66	%		1.40			1.51		(7.28	)%
Income before cumulative effect, as adjusted(1)		0.89			0.88		1.14	%		1.75			1.77		(1.13	)%
Net income (diluted), as adjusted(1)		0.89			0.88		1.14	%		1.40			1.69		(17.16	)%
Dividends		0.20			0.20		—			0.40			0.40		—
Book value										25.49			23.80		7.10	%
SELECTED RATIOS(1)
Return on average assets		1.26	%		1.39	%				1.01	%		1.36	%
Return on average common equity		14.21	%		15.28	%				11.37	%		15.37	%
Efficiency ratio		60.51	%		59.00	%				60.00	%		59.02	%
Net interest margin		4.61	%		4.63	%				4.65	%		4.62	%
OPERATING CASH EARNINGS(2)
Taxable-equivalent net interest income	$	264,282		$	240,151		10.05	%	$	525,587		$	460,860		14.04	%
Net interest income		259,038			235,018		10.22	%		515,253			450,855		14.28	%
Noninterest income		104,014			94,074		10.57	%		200,894			205,934		(2.45	)%
Provision for loan losses		15,705			12,235		28.36	%		33,795			25,007		35.14	%
Noninterest expense		218,287			193,201		12.98	%		426,123			384,446		10.84	%
Income before income taxes		129,060			123,656		4.37	%		256,229			247,336		3.60	%
Income taxes		44,859			40,805		9.94	%		88,724			83,902		5.75	%
Minority interest		(575	)		(1,783	)	(67.75	)%		(725	)		(3,187	)	(77.25	)%
Net income before cumulative effect of change in accounting principle		84,776			84,634		0.17	%		168,230			166,621		0.97	%
PER COMMON SHARE
Net income (diluted)		0.92			0.91		1.10	%		1.82			1.82		—
Dividends		0.20			0.20		—			0.40			0.40		—
Book value										16.37			14.86		10.16	%
SELECTED RATIOS
Return on average assets		1.34	%		1.48	%				1.35	%		1.51	%
Return on average common equity		22.99	%		25.04	%				23.34	%		25.82	%
Efficiency ratio		59.27	%		57.81	%				58.66	%		57.66	%
Net interest margin		4.61	%		4.63	%				4.65	%		4.62	%

(1): Adjusted according to SFAS No. 142 for the add back of 2001 goodwill amortization, net of income tax benefit.
(2): Before amortization of goodwill in prior period, amortization of core deposit and other intangible assets, merger expense, goodwill allocated to the carrying value of branches sold and the cumulative effect of the the adoption of SFAS Nos. 133 and 142.
(3): Adjusted according to SFAS No. 142 for the impairment to goodwill and reflected as a cumulative effect adjustment, net of income tax benefit.

	Three Months Ended June 30,								Six Months Ended June 30,
	2002			2001			% Change		2002			2001			% Change
	(In thousands, except share and ratio data)
AVERAGE BALANCES
Total assets	$	26,128,886		$	23,717,349		10.17	%	$	25,905,200		$	22,930,070		12.97	%
Securities		3,901,341			3,698,320		5.49	%		3,990,091			3,889,179		2.59	%
Net loans and leases		18,083,224			16,030,368		12.81	%		17,812,584			15,317,892		16.29	%
Goodwill		735,622			697,978		5.39	%		735,409			633,192		16.14	%
Core deposit and other intangibles		102,544			104,960		(2.30	)%		104,860			87,000		20.53	%
Total deposits		18,217,798			16,966,059		7.38	%		17,947,954			16,048,889		11.83	%
Minority interest		21,354			28,574		(25.27	)%		19,958			41,073		(51.41	)%
Shareholders' equity		2,317,029			2,158,613		7.34	%		2,293,991			2,021,357		13.49	%
Weighted average common and common-equivalent shares outstanding		92,628,770			93,210,378		(0.62	)%		92,658,111			91,338,796		1.44	%
AT PERIOD END
Total assets										25,734,714			23,487,799		9.57	%
Securities										3,609,416			3,306,507		9.16	%
Net loans and leases										18,452,554			16,476,319		11.99	%
Sold loans being serviced(1)										2,543,887			1,794,063		41.79	%
Allowance for loan losses										264,432			229,865		15.04	%
Goodwill										736,524			731,176		0.73	%
Core deposit and other intangibles										100,003			94,845		5.44	%
Total deposits										18,788,429			17,170,084		9.43	%
Minority interest										22,782			16,074		41.73	%
Shareholders' equity										2,337,278			2,197,722		6.35	%
Common shares outstanding										91,701,887			92,328,261		(0.68	)%
Average equity to average assets		8.87	%		9.10	%				8.86	%		8.82	%
Common dividend payout		22.36	%		25.17	%				28.41	%		26.74	%
Nonperforming assets										115,513			87,500		32.01	%
Loans past due 90 days or more										32,332			40,750		(20.66	)%
Nonperforming assets to net loans and leases, other real estate owned and other nonperforming assets at period end										0.63	%		0.53	%

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2002						2001
				(Adjusted)(3)
	(In thousands, except per share and ratio data)
EARNINGS
Taxable-equivalent net interest income	$	264,282		$	261,305		$	256,931		$	252,214		$	240,151
Net interest income		259,038			256,215			251,821			247,113			235,018
Noninterest income		104,014			95,798			104,907			108,544			94,074
Provision for loan losses		15,705			18,090			26,714			21,470			12,235
Noninterest expenses		222,861			212,407			222,787			223,434			206,091
Income before income taxes		124,486			121,516			107,227			110,753			110,766
Income taxes		42,986			42,035			36,501			41,207			38,954
Minority interest		(575	)		(150	)		(1,160	)		(3,251	)		(1,783	)
Cumulative effect of change in accounting principle		—			(32,369	)		—			—			—
Net income		82,075			47,262			71,886			72,797			73,595
Income before cumulative effect, as adjusted(1)		82,075			79,631			80,440			81,549			82,250
Net income, as adjusted(1)		82,075			47,262			80,440			81,549			82,250
PER COMMON SHARE
Net income (diluted)		0.89			0.51			0.78			0.78			0.79
Income before cumulative effect, as adjusted(1)		0.89			0.86			0.87			0.87			0.88
Net income (diluted), as adjusted(1)		0.89			0.51			0.87			0.87			0.88
Dividends		0.20			0.20			0.20			0.20			0.20
Book value		25.49			24.82			24.74			24.29			23.80
SELECTED RATIOS(1)
Return on average assets		1.26	%		0.75	%		1.28	%		1.32	%		1.39	%
Return on average common equity		14.21	%		8.44	%		14.16	%		14.51	%		15.28	%
Efficiency ratio		60.51	%		59.48	%		59.14	%		59.43	%		59.00	%
Net interest margin		4.61	%		4.70	%		4.66	%		4.65	%		4.63	%
OPERATING CASH EARNINGS(2)
Taxable-equivalent net interest income	$	264,282		$	261,305		$	256,931		$	252,214		$	240,151
Net interest income		259,038			256,215			251,821			247,113			235,018
Noninterest income		104,014			96,880			104,907			108,544			94,074
Provision for loan losses		15,705			18,090			26,714			21,470			12,235
Noninterest expenses		218,287			207,836			207,716			205,372			193,201
Income before income taxes		129,060			127,169			122,298			128,815			123,656
Income taxes		44,859			43,865			39,639			44,750			40,805
Minority interest		(575	)		(150	)		(1,160	)		(3,251	)		(1,783	)
Net income before cumulative effect of change in accounting principle		84,776			83,454			83,819			87,316			84,634
PER COMMON SHARE
Net income (diluted)		0.92			0.90			0.90			0.93			0.91
Dividends		0.20			0.20			0.20			0.20			0.20
Book value		16.37			15.70			15.19			14.95			14.86
SELECTED RATIOS
Return on average assets		1.34	%		1.36	%		1.39	%		1.46	%		1.48	%
Return on average common equity		22.99	%		23.70	%		24.67	%		25.48	%		25.04	%
Efficiency ratio		59.27	%		58.02	%		57.41	%		56.93	%		57.81	%
Net interest margin		4.61	%		4.70	%		4.66	%		4.65	%		4.63	%

(1): Adjusted according to SFAS No. 142 for the add back of goodwill amortization, net of income tax benefit.
(2): Before amortization of goodwill in prior period, amortization of core deposit and other intangible assets, merger expense, goodwill allocated to the carrying value of branches sold and the cumulative effect of the the adoption of SFAS Nos. 133 and 142.
(3): Adjusted according to SFAS No. 142 for the impairment to goodwill and reflected as a cumulative effect adjustment, net of income tax benefit.

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2002						2001
				(Adjusted)(2)
	(In thousands, except share and ratio data)
AVERAGE BALANCES
Total assets	$	26,128,886		$	25,679,029		$	24,899,883		$	24,518,033		$	23,717,349
Securities		3,901,341			4,079,827			4,103,800			4,004,646			3,698,320
Net loans and leases		18,083,224			17,538,937			16,878,995			16,545,117			16,030,368
Goodwill		735,622			735,194			790,313			753,783			697,978
Core deposit and other intangibles		102,544			107,202			114,926			116,178			104,960
Total deposits		18,217,798			17,675,111			17,736,835			17,182,559			16,966,059
Minority interest		21,354			18,546			14,810			20,688			28,574
Shareholders' equity		2,317,029			2,270,697			2,253,096			2,229,326			2,158,613
Weighted average common and common-equivalent shares outstanding		92,628,770			92,813,828			92,685,437			93,509,495			93,210,378
AT PERIOD END
Total assets	$	25,734,714		$	24,804,578		$	24,304,164		$	24,255,570		$	23,487,799
Securities		3,609,416			3,503,789			3,466,357			3,680,612			3,306,507
Net loans and leases		18,452,554			17,854,168			17,310,838			16,776,620			16,476,319
Sold loans being serviced(1)		2,543,887			2,526,076			2,648,270			2,256,379			1,794,063
Allowance for loan losses		264,432			264,107			260,483			245,862			229,865
Goodwill		736,524			734,334			770,763			744,033			731,176
Core deposit and other intangibles		100,003			104,576			109,148			115,666			94,845
Total deposits		18,788,429			18,000,342			17,841,690			17,434,450			17,170,084
Minority interest		22,782			20,769			16,322			13,614			16,074
Shareholders' equity		2,337,278			2,283,000			2,280,869			2,235,167			2,197,722
Common shares outstanding		91,701,887			91,986,436			92,208,736			92,001,233			92,328,261
Average equity to average assets		8.87	%		8.84	%		9.05	%		9.09	%		9.10	%
Common dividend payout		22.36	%		38.93	%		25.67	%		25.36	%		25.17	%
Nonperforming assets		115,513			131,154			120,372			108,602			87,500
Loans past due 90 days or more		32,332			37,371			46,201			46,780			40,750
Nonperforming assets to net loans and leases, other real estate owned and other nonperforming assets at period end		0.63	%		0.73	%		0.69	%		0.65	%		0.53	%

(1): Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.
(2): Adjusted according to SFAS No. 142 for the impairment to goodwill, net of income tax benefit.

ZIONS BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

				June 30, 2002		December 31, 2001		June 30, 2001
				(Unaudited)				(Unaudited)
				(In thousands, except share amounts)
ASSETS
Cash and due from banks				$	1,024,778	$	978,609	$	978,838
Money market investments:
	Interest-bearing deposits				1,773		2,780		4,083
	Federal funds sold				21,791		57,653		23,965
	Security resell agreements				295,792		222,147		353,704
Investment securities:
	Held to maturity, at cost (approximate market value $108,859, $79,752, and $51,109)				107,748		79,546		51,109
	Available for sale, at market				3,194,125		3,283,915		2,993,101
	Trading account, at market (includes $236,344, $87,612, and $167,487 transferred as collateral under repurchase agreements)				307,543		102,896		262,297

					3,609,416		3,466,357		3,306,507
Loans:
	Loans held for sale				165,375		297,959		207,337
	Loans, leases and other receivables				18,386,461		17,115,485		16,359,404

					18,551,836		17,413,444		16,566,741
	Less:
		Unearned income and fees, net of related costs			99,282		102,606		90,422
		Allowance for loan losses			264,432		260,483		229,865

			Net loans		18,188,122		17,050,355		16,246,454
Premises and equipment, net					366,169		368,076		350,715
Goodwill					736,524		770,763		731,176
Core deposit and other intangibles					100,003		109,148		94,845
Other real estate owned					13,814		10,302		10,925
Other assets					1,376,532		1,267,974		1,386,587

				$	25,734,714	$	24,304,164	$	23,487,799

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
	Noninterest-bearing demand			$	4,667,661	$	4,480,669	$	4,142,821
	Interest-bearing:
		Savings and money market			10,657,877		9,507,817		9,193,595
		Time under $100,000			1,865,214		2,055,087		2,072,538
		Time $100,000 and over			1,505,089		1,664,829		1,666,965
		Foreign			92,588		133,288		94,165

					18,788,429		17,841,690		17,170,084
Securities sold, not yet purchased					195,296		87,255		164,345
Federal funds purchased					935,959		1,203,764		819,437
Security repurchase agreements					889,520		933,973		1,132,907
Accrued liabilities					449,812		428,225		510,305
Commercial paper					338,986		309,000		352,632
Federal Home Loan Bank advances and other borrowings:
	One year or less				772,422		181,266		265,275
	Over one year				240,530		240,458		242,337
Long-term debt					763,700		781,342		616,681

		Total liabilities			23,374,654		22,006,973		21,274,003

Minority interest					22,782		16,322		16,074
Shareholders' equity:

Capital stock:
	Preferred stock, without par value; authorized 3,000,000 shares; issued and outstanding, none		—		—		—
	Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 91,701,887, 92,208,736, and 92,328,261 shares		1,072,005		1,111,214		1,120,991
Accumulated other comprehensive income			62,983		59,951		74,796
Retained earnings			1,202,290		1,109,704		1,001,935

	Total shareholders' equity		2,337,278		2,280,869		2,197,722

		$	25,734,714	$	24,304,164	$	23,487,799

ZIONS BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

				Three Months Ended June 30,						Six Months Ended June 30,
				2002			2001			2002			2001
				(In thousands, except per share amounts)
Interest income:
	Interest and fees on loans			$	310,002		$	331,947		$	615,707		$	653,519
	Interest on loans held for sale				2,191			3,158			4,927			6,242
	Lease financing				5,134			5,897			10,802			10,917
	Interest on money market investments				4,215			11,451			7,901			21,665
	Interest on securities:
		Held to maturity—taxable			1,494			796			2,292			1,781
		Available for sale—taxable			33,500			40,904			68,128			89,880
		Available for sale—nontaxable			6,665			6,059			13,007			12,123
		Trading account			5,479			7,197			10,913			18,195

			Total interest income		368,680			407,409			733,677			814,322

Interest expense:
	Interest on savings and money market deposits				43,028			68,868			81,483			145,923
	Interest on time and foreign deposits				28,862			52,883			62,252			99,413
	Interest on borrowed funds				37,752			50,640			74,689			118,131

			Total interest expense		109,642			172,391			218,424			363,467

			Net interest income		259,038			235,018			515,253			450,855
Provision for loan losses					15,705			12,235			33,795			25,007

			Net interest income after provision for loan losses		243,333			222,783			481,458			425,848

Noninterest income:
	Service charges on deposit accounts				29,366			25,379			57,786			47,459
	Loan sales and servicing income				19,348			22,177			26,274			41,772
	Other service charges, commissions and fees				22,347			19,358			43,537			36,892
	Trust income				5,165			4,655			9,578			9,430
	Income from securities conduit				4,523			3,320			8,662			4,048
	Underwriting, trading and nonhedge derivative income				8,466			6,867			23,901			20,909
	Equity securities gains, net				563			2,038			1,184			29,892
	Fixed income securities gains (losses), net				17			278			60			(4,098	)
	Other				14,219			10,002			28,830			19,630

			Total noninterest income		104,014			94,074			199,812			205,934

Noninterest expense:
	Salaries and employee benefits				123,595			106,887			241,069			214,002
	Occupancy, net				17,631			15,776			34,484			30,343
	Furniture and equipment				16,059			14,650			32,421			28,906
	Legal and professional services				7,441			6,320			14,093			13,935
	Postage and supplies				6,969			7,355			14,178			13,382
	Advertising				6,799			6,378			12,663			12,247
	Merger related expense				—			734			—			3,271
	Amortization of goodwill				—			8,903			—			16,045
	Amortization of core deposit and other intangibles				4,574			3,253			9,145			5,819
	Other				39,793			35,835			77,215			71,631

			Total noninterest expense		222,861			206,091			435,268			409,581

			Income before income taxes		124,486			110,766			246,002			222,201
Income taxes					42,986			38,954			85,021			80,092

			Income before minority interest and cumulative effect of change in accounting principle		81,500			71,812			160,981			142,109
Minority interest					(575	)		(1,783	)		(725	)		(3,387	)

			Income before cumulative effect of change in accounting principle		82,075			73,595			161,706			145,496
Cumulative effect of change in accounting principle, net of tax*					—			—			(32,369	)		(7,159	)

			Net income	$	82,075		$	73,595		$	129,337		$	138,337

			Income before cumulative effect, as adjusted	$	82,075		$	82,250		$	161,706		$	161,246

			Net income, as adjusted	$	82,075		$	82,250		$	129,337		$	154,087

			Three Months Ended June 30,				Six Months Ended June 30,
			2002		2001		2002			2001
			(In thousands, except per share amounts)
Weighted average shares outstanding during the period:
		Basic shares		91,779		92,165		91,916			90,217
		Diluted shares		92,629		93,210		92,658			91,339
Net income per common share:
	Basic:
		Income before cumulative effect of change in accounting principle	$	0.89	$	0.80	$	1.76		$	1.61
		Add back—goodwill amortization net of income tax benefit		—		0.09		—			0.18

		Income before cumulative effect of change in accounting principle, as adjusted		0.89		0.89		1.76			1.79
		Cumulative effect of change in accounting principle*		—		—		(0.35	)		(0.08	)

		Net income, as adjusted	$	0.89	$	0.89	$	1.41		$	1.71

	Diluted:
		Income before cumulative effect of change in accounting principle	$	0.89	$	0.79	$	1.75		$	1.59
		Add back—goodwill amortization net of income tax benefit		—		0.09		—			0.18

		Income before cumulative effect of change in accounting principle, as adjusted		0.89		0.88		1.75			1.77
		Cumulative effect of change in accounting principle*		—		—		(0.35	)		(0.08	)

		Net income, as adjusted	$	0.89	$	0.88		1.40			1.69

*: For the six months ended June 30, 2001, the cumulative effect adjustment relates to the adoption of Statement of Financial Accounting Standards ("SFAS") No. 133, net of income tax benefit of $4,521. For the six months ended June 30, 2002, the cumulative effect adjustment relates to the impairment in carrying value of the Company's investment in certain of its e-commerce subsidiaries, measured as of January 1, 2002, net of income tax benefit of $2,676. This adjustment resulted from the completion of the required impairment tests of goodwill as provided under SFAS No. 142, which became effective for the Company beginning January 1, 2002.

ZIONS BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

			Six Months Ended June 30, 2002
						Accumulated Other Comprehensive Income (Loss)
			Common Stock			Net Unrealized Gains (Losses) on Investments and Retained Interests			Net Unrealized Gains (Losses) on Derivative Instruments			Subtotal			Retained Earnings			Total Shareholders' Equity
			(In thousands)
Balance, January 1, 2002			$	1,111,214		$	31,774		$	28,177		$	59,951		$	1,109,704		$	2,280,869
Comprehensive income:
	Net income for the period															129,337			129,337
	Other comprehensive income:
		Net realized and unrealized holding gains during the period, net of income tax expense of $7,705					12,439						12,439
		Reclassification for net realized gains recorded in operations, net of income tax expense of $23					(37	)					(37	)
		Change in net unrealized losses on derivative instruments, net of reclassification to operations of $19,992 and income tax benefit of $5,804								(9,370	)		(9,370	)

		Other comprehensive income (loss)					12,402			(9,370	)		3,032						3,032

	Total comprehensive income																		132,369
Cash dividends—common, $.40 per share																(36,751	)		(36,751	)
Stock redeemed and retired				(56,461	)														(56,461	)
Stock options exercised, net of shares tendered and retired				17,252															17,252

Balance, June 30, 2002			$	1,072,005		$	44,176		$	18,807		$	62,983		$	1,202,290		$	2,337,278

			Six Months Ended June 30, 2001
					Accumulated Other Comprehensive Income (Loss)
			Common Stock		Net Unrealized Gains (Losses) on Investments and Retained Interests			Net Unrealized Gains on Derivative Instruments		Subtotal			Retained Earnings			Total Shareholders' Equity
			(In thousands)
Balance, January 1, 2001			$	907,604	$	(3,644	)			$	(3,644	)	$	874,884		$	1,778,844
Comprehensive income:
	Net income for the period													138,337			138,337
	Other comprehensive income:
		Net realized and unrealized holding gains during the period, net of income tax expense of $19,311				31,175					31,175
		Reclassification for net realized losses recorded in operations, net of income tax benefit of $2,544				4,107					4,107
		Change in net unrealized gains on derivative instruments, net of reclassification to operations of $4,936 and income tax expense of $5,347						$	8,633		8,633
		Cumulative effect of change in accounting principle, adoption of FASB Statement No. 133, net of income tax expense of $21,245				13,259			21,266		34,525

		Other comprehensive income				48,541			29,899		78,440						78,440

	Total comprehensive income																216,777
Cash dividends—common, $.40 per share														(36,985	)		(36,985	)
Issuance of common shares for acquisitions				199,671										25,699			225,370
Stock options exercised, net of shares tendered and retired				13,716													13,716

Balance, June 30, 2001			$	1,120,991	$	44,897		$	29,899	$	74,796		$	1,001,935		$	2,197,722

ZIONS BANCORPORATION AND SUBSIDIARIES

Sold Loans Being Serviced*
(Unaudited)

		Three Months Ended June 30, 2002			Three Months Ended March 31, 2002			Three Months Ended December 31, 2001			Three Months Ended September 30, 2001			Three Months Ended June 30, 2001
		(In thousands)
Balance at beginning of period		$	2,526,076		$	2,648,270		$	2,256,379		$	1,794,063		$	1,776,139
Add:
	Sold loans of company acquired		—			—			—			154,150			—
	New loans sold		284,888			178,705			673,924			556,785			244,830
Deduct:
	Payments and other reductions		(267,077	)		(300,899	)		(282,033	)		(248,619	)		(226,906	)

Balance at end of period		$	2,543,887		$	2,526,076		$	2,648,270		$	2,256,379		$	1,794,063

*: Amount represents the outstanding balance of loans and receivables sold and being serviced by the company, excluding conforming first mortgage residential real estate loans.

Nonperforming Assets
(Unaudited)

	June 30, 2002			March 31, 2002			December 31, 2001			September 30, 2001			June 30, 2001
	(In thousands)
Nonaccrual loans	$	100,344		$	116,246		$	108,637		$	92,006		$	74,663
Restructured loans		1,355			1,418			1,433			1,523			1,912
Other real estate owned and other nonperforming assets		13,814			13,490			10,302			15,073			10,925

Total	$	115,513		$	131,154		$	120,372		$	108,602		$	87,500

% of net loans and leases*, other real estate owned and other nonperforming assets		0.63	%		0.73	%		0.69	%		0.65	%		0.53	%
Accruing loans past due 90 days or more	$	32,332		$	37,371		$	46,201		$	46,780		$	40,750

% of net loans and leases*		0.18	%		0.21	%		0.27	%		0.28	%		0.25	%

*: Includes loans held for sale.

Allowance for Loan Losses
(Unaudited)

			Three Months Ended June 30, 2002			Three Months Ended March 31, 2002			Three Months Ended December 31, 2001			Three Months Ended September 30, 2001			Three Months Ended June 30, 2001
			(In thousands)
Balance at beginning of period			$	264,107		$	260,483		$	245,862		$	229,865		$	221,245
Allowance for loan losses of companies acquired				—			—			6,106			—			5,000
Add:
	Provision for losses			15,705			18,090			26,714			21,470			12,235
Deduct:
	Loan and lease charge-offs			(18,734	)		(18,788	)		(22,533	)		(11,062	)		(11,755	)
	Recoveries			3,354			4,322			4,334			5,589			3,140

		Net loan and lease charge-offs		(15,380	)		(14,466	)		(18,199	)		(5,473	)		(8,615	)

Balance at end of period			$	264,432		$	264,107		$	260,483		$	245,862		$	229,865

ZIONS BANCORPORATION AND SUBSIDIARIES

LOAN BALANCES BY PORTFOLIO TYPE

(Unaudited)

			June 30, 2002		March 31, 2002		December 31, 2001		September 30, 2001		June 30, 2001
			(In millions)
Types
Loans held for sale			$	165	$	207	$	298	$	261	$	207
Commercial, financial, and agricultural				4,168		4,114		4,109		4,046		4,043
Real estate:
	Construction			3,046		2,995		2,936		2,851		2,699
	Other:
		Home equity credit line		582		454		401		339		330
		1-4 family residential		3,379		3,364		3,168		2,973		3,075
		Other real estate-secured		5,846		5,480		5,126		5,110		4,997

				9,807		9,298		8,695		8,422		8,402

				12,853		12,293		11,631		11,273		11,101
Consumer:
	Bankcard			121		116		126		109		111
	Other			743		726		707		676		646

				864		842		833		785		757
Lease financing				409		408		421		416		372
Foreign loans				25		24		14		14		17
Other receivables				68		69		107		84		70

		Total loans	$	18,552	$	17,957	$	17,413	$	16,879	$	16,567

ZIONS BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

			Three Months Ended June 30, 2002							Three Months Ended June 30, 2001
			Average Balance			Amount of Interest(1)		Average Rate		Average Balance			Amount of Interest(1)		Average Rate
			(In thousands)
ASSETS
Money market investments			$	1,026,799		$	4,215	1.65	%	$	1,055,018		$	11,451	4.35	%
Securities:
	Held to maturity			93,782			1,494	6.39	%		51,365			796	6.22	%
	Available for sale			3,216,084			43,754	5.46	%		3,080,120			50,226	6.54	%
	Trading account			591,475			5,479	3.72	%		566,835			7,197	5.09	%

		Total securities		3,901,341			50,727	5.22	%		3,698,320			58,219	6.31	%

Loans:
	Loans held for sale			175,662			2,191	5.00	%		206,384			3,158	6.14	%
	Net loans and leases(2)			17,907,562			316,791	7.10	%		15,823,984			339,714	8.61	%

		Total loans		18,083,224			318,982	7.08	%		16,030,368			342,872	8.58	%

Total interest-earning assets				23,011,364			373,924	6.52	%		20,783,706			412,542	7.96	%

Cash and due from banks				919,176							835,000
Allowance for loan losses				(266,669	)						(227,809	)
Goodwill				735,622							697,978
Core deposit and other intangibles				102,544							104,960
Other assets				1,626,849							1,523,514

		Total assets	$	26,128,886						$	23,717,349

LIABILITIES
Interest-bearing deposits:
	Savings and NOW deposits		$	2,528,034			6,963	1.10	%	$	2,131,000			8,759	1.65	%
	Money market super NOW deposits			7,795,332			36,065	1.86	%		6,961,095			60,109	3.46	%
	Time under $100,000			1,915,613			15,777	3.30	%		2,201,258			27,801	5.07	%
	Time $100,000 and over			1,483,627			12,685	3.43	%		1,643,045			24,305	5.93	%
	Foreign deposits			104,124			400	1.54	%		97,504			777	3.20	%

		Total interest-bearing deposits		13,826,730			71,890	2.09	%		13,033,902			121,751	3.75	%

Borrowed funds:
	Securities sold, not yet purchased			378,173			4,303	4.56	%		331,314			4,562	5.52	%
	Federal funds purchased and security repurchase agreements			2,654,564			10,873	1.64	%		2,561,867			25,214	3.95	%
	Commercial paper			371,408			2,032	2.19	%		330,896			4,025	4.88	%
	FHLB advances and other borrowings:
		One year or less		796,092			3,757	1.89	%		303,306			4,208	5.56	%
		Over one year		226,822			2,855	5.05	%		172,127			2,327	5.42	%
	Long-term debt			783,314			13,932	7.13	%		550,985			10,304	7.50	%

		Total borrowed funds		5,210,373			37,752	2.91	%		4,250,495			50,640	4.78	%

Total interest-bearing liabilities				19,037,103			109,642	2.31	%		17,284,397			172,391	4.00	%

Noninterest-bearing deposits				4,391,068							3,932,157
Other liabilities				362,332							313,608

Total liabilities				23,790,503							21,530,162
Minority interest				21,354							28,574
Total shareholders' equity				2,317,029							2,158,613

		Total liabilities and shareholders' equity	$	26,128,886						$	23,717,349

Spread on average interest-bearing funds								4.21	%						3.96	%
Net interest income and net yield on interest-earning assets						$	264,282	4.61	%				$	240,151	4.63	%

(1): Taxable-equivalent rates used where applicable.
(2): Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.

			Six Months Ended June 30, 2002							Six Months Ended June 30, 2001
			Average Balance			Amount of Interest(1)		Average Rate		Average Balance			Amount of Interest(1)		Average Rate
			(In thousands)
ASSETS
Money market investments			$	979,032		$	7,901	1.63	%	$	927,083		$	21,665	4.71	%
Securities:
	Held to maturity			86,503			2,292	5.34	%		51,670			1,781	6.95	%
	Available for sale			3,282,589			88,139	5.41	%		3,187,063			108,531	6.87	%
	Trading account			620,999			10,913	3.54	%		650,446			18,195	5.64	%

		Total securities		3,990,091			101,344	5.12	%		3,889,179			128,507	6.66	%

Loans:
	Loans held for sale			194,888			4,927	5.10	%		193,219			6,242	6.51	%
	Net loans and leases(2)			17,617,696			629,839	7.21	%		15,124,673			667,913	8.91	%

		Total loans		17,812,584			634,766	7.19	%		15,317,892			674,155	8.88	%

Total interest-earning assets				22,781,707			744,011	6.59	%		20,134,154			824,327	8.26	%

Cash and due from banks				947,890							811,801
Allowance for loan losses				(265,368	)						(214,680	)
Goodwill				735,409							633,192
Core deposit and other intangibles				104,860							87,000
Other assets				1,600,702							1,478,603

		Total assets	$	25,905,200						$	22,930,070

LIABILITIES
Interest-bearing deposits:
	Savings and NOW deposits		$	2,440,404			13,037	1.08	%	$	1,942,383			17,371	1.80	%
	Money market super NOW deposits			7,573,164			68,446	1.82	%		6,775,483			128,552	3.83	%
	Time under $100,000			1,969,633			34,261	3.51	%		1,996,123			51,545	5.21	%
	Time $100,000 and over			1,537,628			27,203	3.57	%		1,546,005			46,022	6.00	%
	Foreign deposits			102,699			788	1.55	%		110,062			1,846	3.38	%

		Total interest-bearing deposits		13,623,528			143,735	2.13	%		12,370,056			245,336	4.00	%

Borrowed funds:
	Securities sold, not yet purchased			385,183			8,005	4.19	%		357,527			9,847	5.55	%
	Federal funds purchased and security repurchase agreements			2,889,824			23,766	1.66	%		2,641,829			59,937	4.58	%
	Commercial paper			364,317			3,918	2.17	%		308,813			8,342	5.45	%
	FHLB advances and other borrowings:
		One year or less		596,605			5,566	1.88	%		551,438			16,639	6.08	%
		Over one year		227,163			5,687	5.05	%		151,497			4,236	5.64	%
	Long-term debt			788,542			27,747	7.10	%		492,414			19,130	7.83	%

		Total borrowed funds		5,251,634			74,689	2.87	%		4,503,518			118,131	5.29	%

Total interest-bearing liabilities				18,875,162			218,424	2.33	%		16,873,574			363,467	4.34	%

Noninterest-bearing deposits				4,324,426							3,678,833
Other liabilities				391,663							315,233

Total liabilities				23,591,251							20,867,640
Minority interest				19,958							41,073
Total shareholders' equity				2,293,991							2,021,357

		Total liabilities and shareholders' equity	$	25,905,200						$	22,930,070

Spread on average interest-bearing funds								4.26	%						3.92	%
Net interest income and net yield on interest-earning assets						$	525,587	4.65	%				$	460,860	4.62	%

(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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EXHIBIT 99.1