EX-99.1 2 dex991.htm PRESS RELEASE DATED OCTOBER 18, 2007 Press Release dated October 18, 2007

EXHIBIT 99.1

LOGO

***FOR IMMEDIATE RELEASE***

 

For: ZIONS BANCORPORATION   Contact: Clark Hinckley
One South Main, 15th Floor   Tel: (801) 524-4787
Salt Lake City, Utah   October 18, 2007
Harris H. Simmons  
Chairman/Chief Executive Officer  

ZIONS BANCORPORATION REPORTS EARNINGS OF $1.22

PER DILUTED COMMON SHARE FOR THIRD QUARTER 2007

SALT LAKE CITY, October 18, 2007 – Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported third quarter net earnings applicable to common shareholders of $132.0 million, or $1.22 per diluted common share, compared to $153.7 million or $1.42 per diluted common share for the third quarter of 2006. The return on average common equity was 10.50% compared to 12.50% for the second quarter of 2007 and 13.41% for the third quarter of 2006.

Comparisons to 2006 include the impact of the Company’s acquisition of The Stockmen’s Bancorp, Inc., which became effective January 17, 2007.

Third Quarter 2007 Key Performance Highlights Compared to Second Quarter 2007

 

  •  

Loan growth of $1.0 billion.

 

  •  

Increased credit costs:

 

     Provision for loan losses of $55.4 million, up $37.6 million.

 

     Net loan and lease charge-offs of $18.1 million, up $9.4 million.

 

     Nonperforming assets of $196.6 million, up $101.2 million.

 

  •  

Net interest margin of 4.44%, down nine basis points.

 

  •  

Average core deposits increased slightly; average total and demand deposits decreased slightly.

 

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ZIONS BANCORPORATION

Press Release – Page 2

October 18, 2007

“We were pleased by the strength of loan growth during the quarter. Unfortunately, these positive results were overshadowed by the effects of weaker credit conditions in the Southwestern residential real estate development markets, as well as lagging low-cost deposit growth.” said Harris H. Simmons, chairman and chief executive officer.

Year-to-date net earnings applicable to common shareholders were $437.2 million or $4.01 per diluted common share compared to $436.6 million or $4.04 per diluted common share for the same period in 2006. The return on average common equity for the first nine months of 2007 was 11.74% compared to 13.18% for the first nine months of 2006.

Loan Growth

On-balance-sheet net loans and leases were $37.8 billion at September 30, 2007, an increase of approximately $1.0 billion or 11.2% annualized from $36.8 billion at June 30, 2007, and an increase of approximately $4.1 billion or 12.2% from $33.7 billion at September 30, 2006. Loan growth during the quarter was concentrated primarily in the commercial lending and secondarily in the commercial real estate categories, principally at Zions Bank, Amegy Bank of Texas, and Vectra Bank Colorado.

Deposits

Average core deposits for the third quarter of 2007 increased $0.2 billion or 2.5% annualized to $31.1 billion compared to $30.9 billion for the second quarter of 2007 and increased $1.6 billion or 5.6% compared to $29.4 billion for the third quarter of 2006. Average noninterest-bearing demand deposits for the third quarter of 2007 were $9.4 billion compared to $9.6 billion for the second quarter of 2007. Average total deposits for the third quarter of 2007 decreased to $35.8 billion compared to $36.0 billion for the second quarter of 2007 and increased $2.8 billion or 8.5% compared to $33.0 billion for the third quarter of 2006.

Net Interest Income

Net interest income for the third quarter of 2007 increased $7.3 million or 6.2% annualized to $476.6 million compared to $469.3 million for the second quarter of 2007, and increased $30.1 million or 6.7% compared to $446.5 million for the third quarter of 2006. Taxable-equivalent net interest income for the

 

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ZIONS BANCORPORATION

Press Release – Page 3

October 18, 2007

third quarter of 2007 increased $7.1 million or 5.9% annualized to $483.1 million compared to $476.1 million for the second quarter of 2007, and increased $30.5 million or 6.7% from $452.6 million for the third quarter of 2006.

During the third quarter of 2007, the Company purchased asset-backed commercial paper from Lockhart Funding, LLC, a qualifying special-purpose entity sponsored by Zions Bank. The amount of commercial paper included in money market investments on the Company’s average balance sheet for the third quarter was approximately $232 million. The amount of the purchased commercial paper outstanding at September 30, 2007 was approximately $500 million. These purchases were made to provide liquidity to Lockhart during the recent disruptions in the credit markets. As of October 17, 2007, the amount of purchased commercial paper had decreased to approximately $174 million.

The net interest margin was 4.44% for the third quarter of 2007 compared to 4.53% for the second quarter of 2007 and 4.58% for the third quarter of 2006. The decrease in the net interest margin during the quarter primarily resulted from the decline in average noninterest-bearing deposit balances and from the strong loan growth being funded mainly by increased nondeposit borrowings. The net interest margin was not meaningfully impacted during the quarter by the Federal Reserve’s reduction in September of its targeted Federal Funds rate.

Noninterest Income

Noninterest income for the third quarter of 2007 was $145.8 million compared to $141.3 million for the second quarter of 2007 and $145.3 million for the third quarter of 2006. Loan sales and servicing income increased during the quarter primarily due to the absence of pretax impairment charges on retained interests from certain previous small business loan securitizations. Income from securities conduit decreased $2.7 million primarily because of the higher cost of asset-backed commercial paper. Dividends and other investment income increased $3.4 million primarily due to increased income from investments accounted for on the equity method. Trading and nonhedge derivative income decreased $10.4 million primarily because of decreases in the fair value of nonhedge derivatives due to the decreasing spreads between LIBOR and prime rates. Net equity securities gains increased during the quarter primarily because of $11.1 million of net gains on venture capital investments. Net of related

 

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ZIONS BANCORPORATION

Press Release – Page 4

October 18, 2007

minority interest of $7.5 million, income taxes and other expenses, the gains from consolidated venture capital investments increased net income by approximately $1.9 million, or $0.02 per diluted common share.

Noninterest Expense

Noninterest expense for the third quarter of 2007 was $352.0 million compared to $347.6 million for the second quarter of 2007 and $330.0 million for the third quarter of 2006. The efficiency ratio for the third quarter of 2007 was 56.0% compared to 56.3% for the second quarter of 2007 and 55.2% for the third quarter of 2006. Adjusted for the effect of limited liability company minority interest, the effective income tax rate was 34.6% for the third quarter of 2007 compared to 35.1% for the second quarter of 2007.

Asset Quality

Nonperforming assets were $196.6 million at September 30, 2007 compared to $95.4 million at June 30, 2007 and $74.8 million at September 30, 2006, primarily reflecting continuing weakness in residential development and construction activity in the Southwest. The ratio of nonperforming assets to net loans and leases and other real estate owned was 0.52% at September 30, 2007 compared to 0.26% at June 30, 2007 and 0.22% at September 30, 2006.

Net loan and lease charge-offs for the third quarter of 2007 were $18.1 million or 0.19% annualized of average loans. This compares with $8.7 million or 0.10% annualized of average loans for the second quarter of 2007 and $6.5 million or 0.08% annualized of average loans for the third quarter of 2006.

The provision for loan losses was $55.4 million for the third quarter of 2007 compared to $17.8 million for the second quarter of 2007 and $14.4 million for the third quarter of 2006. The combined provisions for loan losses and unfunded lending commitments were $55.5 million for the third quarter of 2007, $19.0 million for the second quarter of 2007, and $15.4 million for the third quarter of 2006.

The allowance for loan losses as a percentage of net loans and leases was 1.11% at September 30, 2007,

 

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ZIONS BANCORPORATION

Press Release – Page 5

October 18, 2007

1.03% at June 30, 2007 and 1.06% at September 30, 2006. The allowance was 226.5% of nonperforming loans at September 30, 2007. The combined allowances for credit losses (allowance for loan losses plus the allowance for unfunded lending commitments) were $439.6 million or 1.16% of net loans and leases at September 30, 2007 compared to $401.5 million or 1.09% at June 30, 2007 and $375.0 million or 1.11% at September 30, 2006.

Capital Management

Under its stock repurchase plan, the Company repurchased 1,194,296 common shares for $90.0 million during the third quarter of 2007 at an average price of $75.37 per share. The Company has not repurchased any shares since August 16, 2007. At September 30, 2007, approximately $56.3 million remained under the current $400 million repurchase authorization. For the first nine months of 2007, the Company repurchased approximately 3.9 million common shares. Approximately 2.6 million shares were issued in January 2007 for the Stockmen’s acquisition.

The Company’s tangible equity ratio was 6.40% at September 30, 2007 compared to 6.52% at June 30, 2007 and 5.92% at September 30, 2006. The decrease from the previous quarter is primarily due to loan growth, share repurchases, and reduced earnings partially offset by reductions in accumulated other comprehensive loss.

Weighted average common and common-equivalent shares outstanding for the third quarter of 2007 were 107,879,963 compared to 109,123,735 for the second quarter of 2007 and 108,061,423 for the third quarter of 2006. Common shares outstanding at September 30, 2007 were 106,934,360 compared to 108,034,079 at June 30, 2007 and 106,804,606 at September 30, 2006. The decrease for the quarter was mainly due to share repurchases.

Other Events

As previously announced, effective September 6, 2007, the Company’s Amegy Bank of Texas subsidiary completed its acquisition of Intercontinental Bank Shares Corporation, located in San Antonio, Texas. Approximately $58 million in loans and $105 million in deposits, including $98 million in core deposits, were added to the Company’s balance sheet.

 

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ZIONS BANCORPORATION

Press Release – Page 6

October 18, 2007

During the third quarter of 2007, the Company successfully completed the systems conversion of its California Bank & Trust subsidiary.

Conference Call

Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 18, 2007). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-510-9836 (international: 617-614-3670) and entering the passcode 62946441, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. ET on Thursday, October 18, through midnight ET on Thursday, October 25, by dialing 1-888-286-8010 (international: 617-801-6888) and entering the passcode 30695070. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation

Zions Bancorporation is one of the nation’s premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through over 500 offices and approximately 600 ATMs in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

Statements in this news release that are based on other than historical data are forward-looking, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events. These forward-looking statements are not

 

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ZIONS BANCORPORATION

Press Release – Page 7

October 18, 2007

guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2006 Annual Report on Form 10-K of Zions Bancorporation filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site ( http://www.sec.gov ).

The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 8

FINANCIAL HIGHLIGHTS

(Unaudited)

 

    

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

(In thousands, except per share and ratio data)    2007    2006    % Change    2007    2006    % Change
EARNINGS                  

Taxable-equivalent net interest income

    $   483,115       $   452,606       6.74 %    $   1,422,896       $   1,323,691       7.49 %

Taxable-equivalent revenue

      628,938         597,935       5.19 %      1,855,474         1,735,019       6.94 %

Net interest income

      476,637         446,511       6.75 %      1,403,067         1,305,685       7.46 %

Noninterest income

      145,823         145,329       0.34 %      432,578         411,328       5.17 %

Provision for loan losses

      55,354         14,363       285.39 %      82,228         45,897       79.16 %

Noninterest expense

      352,031         330,028       6.67 %      1,051,622         987,511       6.49 %

Income before income taxes and minority interest

      215,075         247,449       (13.08)%      701,795         683,605       2.66 %

Income taxes

      71,853         83,790       (14.25)%      246,772         237,869       3.74 %

Minority interest

      7,490         9,985       (24.99)%      6,819         9,119       (25.22)%

Net income

      135,732         153,674       (11.68)%      448,204         436,617       2.65 %

Net earnings applicable to common shareholders

      131,962         153,674       (14.13)%      437,224         436,617       0.14 %
PER COMMON SHARE                  

Net earnings (diluted)

      1.22         1.42       (14.08)%      4.01         4.04       (0.74)%

Dividends

      0.43         0.36       19.44 %      1.25         1.08       15.74 %

Book value per common share

               46.92         43.47       7.94 %
SELECTED RATIOS                  

Return on average assets

      1.10%      1.36%         1.24%      1.34%   

Return on average common equity

      10.50%      13.41%         11.74%      13.18%   

Efficiency ratio

      55.97%      55.19%         56.68%      56.92%   

Net interest margin

      4.44%      4.58%         4.49%      4.64%   

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 9

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

 

    

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

(In thousands, except share and ratio data)    2007    2006    % Change    2007    2006    % Change

AVERAGE BALANCES

                  

Total assets

    $ 48,903,319       $ 44,680,382       9.45 %    $ 48,141,571       $ 43,710,533       10.14 %

Securities

      5,221,722         5,605,249       (6.84)%      5,480,047         5,849,953       (6.32)%

Net loans and leases

      37,194,850         33,105,716       12.35 %      36,254,519         31,834,510       13.88 %

Goodwill

      2,015,532         1,881,708       7.11 %      2,003,972         1,884,462       6.34 %

Core deposit and other intangibles

      177,864         175,259       1.49 %      186,884         185,619       0.68 %

Total deposits

      35,756,600         32,964,029       8.47 %      35,636,209         32,390,954       10.02 %

Core deposits (1)

      31,067,905         29,427,975       5.57 %      30,769,026         29,394,957       4.67 %

Minority interest

      37,527         37,854       (0.86)%      37,747         31,556       19.62 %

Shareholders' equity:

                  

Preferred equity

      240,000         –         –            240,000         –         –      

Common equity

      4,987,275         4,545,990       9.71 %      4,978,473         4,428,182       12.43 %

Weighted average common and common-equivalent shares outstanding

      107,879,963         108,061,423       (0.17)%      109,059,322         107,949,894       1.03 %

AT PERIOD END

                  

Total assets

             $ 50,044,686       $ 45,777,747       9.32 %

Securities

               5,261,057         5,817,571       (9.57)%

Net loans and leases

               37,822,259         33,706,110       12.21 %

Sold loans being serviced (2)

               2,022,142         2,796,644       (27.69)%

Allowance for loan losses

               418,165         356,342       17.35 %

Allowance for unfunded lending commitments

               21,394         18,637       14.79 %

Goodwill

               2,021,519         1,884,328       7.28 %

Core deposit and other intangibles

               172,140         168,135       2.38 %

Total deposits

               35,774,713         33,640,991       6.34 %

Core deposits (1)

               31,239,069         30,027,827       4.03 %

Minority interest

               37,411         41,158       (9.10)%

Shareholders' equity:

                  

Preferred equity

               240,000         –         –      

Common equity

               5,016,980         4,643,166       8.05 %

Common shares outstanding

               106,934,360         106,804,606       0.12 %

Average equity to average assets

      10.69%      10.17%         10.84%      10.13%   

Common dividend payout

      34.96%      25.00%         30.96%      26.31%   

Tangible equity ratio

               6.40%      5.92%   

Nonperforming assets

               196,575         74,815       162.75 %

Accruing loans past due 90 days or more

               64,516         20,407       216.15 %

Nonperforming assets to net loans and leases and other real estate owned at period end

               0.52%      0.22%   

 

(1) Amount consists of total deposits excluding time deposits $100,000 and over.
(2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 10

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

 

     Three Months Ended

 

(In thousands, except per share and ratio data)

    September 30,
2007		   

June 30,

2007

    March 31,
2007		    December 31,
2006		    September 30,
2006

EARNINGS

               

Taxable-equivalent net interest income

    $   483,115       $   476,060       $   463,721       $   465,267       $   452,606   

Taxable-equivalent revenue

      628,938         617,401         609,135         605,148         597,935   

Net interest income

      476,637         469,347         457,083         459,039         446,511   

Noninterest income

      145,823         141,341         145,414         139,881         145,329   

Provision for loan losses

      55,354         17,763         9,111         26,675         14,363   

Noninterest expense

      352,031         347,612         351,979         342,926         330,028   

Income before income taxes and minority interest

      215,075         245,313         241,407         229,319         247,449   

Income taxes

      71,853         86,065         88,854         80,081         83,790   

Minority interest

      7,490         34         (705)        2,730         9,985   

Net income

      135,732         159,214         153,258         146,508         153,674   

Net earnings applicable to common shareholders

      131,962         155,607         149,655         142,673         153,674   

PER COMMON SHARE

               

Net earnings (diluted)

      1.22         1.43         1.36         1.32         1.42   

Dividends

      0.43         0.43         0.39         0.39         0.36   

Book value per common share

      46.92         46.14         46.04         44.48         43.47   

SELECTED RATIOS

               

Return on average assets

      1.10%      1.33%      1.31%      1.27%      1.36%

Return on average common equity

      10.50%      12.50%      12.25%      12.08%      13.41%

Efficiency ratio

      55.97%      56.30%      57.78%      56.67%      55.19%

Net interest margin

      4.44%      4.53%      4.51%      4.60%      4.58%

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 11

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

 

     Three Months Ended

 

(In thousands, except share and ratio data)

    September 30,
2007		   

June 30,

2007

   

March 31,

2007

   

December 31,

2006

    September 30,
2006

AVERAGE BALANCES

               

Total assets

    $ 48,903,319        $ 47,921,787        $ 47,478,985        $ 45,818,165        $ 44,680,382   

Securities

      5,221,722          5,426,896          5,797,856          5,627,906          5,605,249   

Net loans and leases

      37,194,850          36,142,957          35,406,094          34,059,617          33,105,716   

Goodwill

      2,015,532          2,012,270          1,983,765          1,895,860          1,881,708   

Core deposit and other intangibles

      177,864          188,843          194,124          168,547          175,259   

Total deposits

      35,756,600          35,964,203          35,181,504          33,853,608          32,964,029   

Core deposits (1)

      31,067,905          30,873,001          30,358,375          29,763,841          29,427,975   

Minority interest

      37,527          35,009          40,741          40,471          37,854   

Shareholders' equity:

               

Preferred equity

      240,000          240,000          240,000          65,216          –      

Common equity

      4,987,275          4,993,383          4,954,400          4,685,507          4,545,990   

Weighted average common and common-equivalent shares outstanding

      107,879,963          109,123,735          110,106,637          108,221,096          108,061,423   

AT PERIOD END

               

Total assets

    $ 50,044,686        $ 48,691,445        $ 48,558,866        $ 46,970,226        $ 45,777,747   

Securities

      5,261,057          5,289,180          5,608,927          5,767,467          5,817,571   

Net loans and leases

      37,822,259          36,788,205          35,944,848          34,667,556          33,706,110   

Sold loans being serviced (2)

      2,022,142          2,201,897          2,401,355          2,586,451          2,796,644   

Allowance for loan losses

      418,165          380,295          371,213          365,150          356,342   

Allowance for unfunded lending commitments

      21,394          21,222          20,000          19,368          18,637   

Goodwill

      2,021,519          2,013,314          2,011,889          1,900,517          1,884,328   

Core deposit and other intangibles

      172,140          180,867          192,677          162,134          168,135   

Total deposits

      35,774,713          36,185,572          36,325,739          34,981,746          33,640,991   

Core deposits (1)

      31,239,069          31,303,578          31,238,791          30,679,690          30,027,827   

Minority interest

      37,411          32,094          38,691          42,791          41,158   

Shareholders' equity:

               

Preferred equity

      240,000          240,000          240,000          240,000          –      

Common equity

      5,016,980          4,984,702          5,021,170          4,747,023          4,643,166   

Common shares outstanding

      106,934,360          108,034,079          109,052,149          106,720,884          106,804,606   

Average equity to average assets

      10.69%       10.92%       10.94%       10.37%       10.17%

Common dividend payout

      34.96%       29.88%       28.57%       29.51%       25.00%

Tangible equity ratio

      6.40%       6.52%       6.59%       6.51%       5.92%

Nonperforming assets

      196,575          95,398          82,524          81,994          74,815   

Accruing loans past due 90 days or more

      64,516          47,782          56,880          43,727          20,407   

Nonperforming assets to net loans and leases and other real estate owned at period end

      0.52%       0.26%       0.23%       0.24%       0.22% 

 

(1) Amount consists of total deposits excluding time deposits $100,000 and over.
(2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 12

CONSOLIDATED BALANCE SHEETS

 

(In thousands, except share amounts)    September 30,
2007		   

June 30,

2007

   

March 31,

2007

    December 31,
2006		    September 30,
2006
     (Unaudited)    (Unaudited)    (Unaudited)         (Unaudited)

ASSETS

               

Cash and due from banks

    $ 1,481,238     $ 1,640,946     $ 1,574,519     $ 1,938,810     $ 1,616,910 

Money market investments:

               

Interest-bearing deposits and commercial paper

      513,395       39,881       17,325       43,203       39,882 

Federal funds sold

      23,567       120,959       527,691       55,658       72,036 

Security resell agreements

      484,678       482,893       439,722       270,415       272,643 

Investment securities:

               

Held to maturity, at cost (approximate market value $686,026, $685,521, $663,474, $648,828 and $655,170)

      695,842       702,189       667,269       653,124       662,547 

Available for sale, at market

      4,549,721       4,564,183       4,909,220       5,050,907       5,062,409 

Trading account, at market (includes $22, $1,745, $1,095, $34,494 and $60,331 transferred as collateral under repurchase agreements)

      15,494       22,808       32,438       63,436       92,615 
                                  
     5,261,057       5,289,180       5,608,927       5,767,467       5,817,571 

Loans:

               

Loans held for sale

      200,653       226,041       266,880       252,818       268,305 

Loans and leases

      37,778,228       36,715,752       35,832,061       34,566,118       33,583,499 
                                  
     37,978,881       36,941,793       36,098,941       34,818,936       33,851,804 

Less:

               

Unearned income and fees, net of related costs

      156,622       153,588       154,093       151,380       145,694 

Allowance for loan losses

      418,165       380,295       371,213       365,150       356,342 
                                  

Loans and leases, net of allowance

      37,404,094       36,407,910       35,573,635       34,302,406       33,349,768 

Other noninterest-bearing investments

      1,043,475       972,830       988,015       1,022,383       1,005,989 

Premises and equipment, net

      658,294       648,731       645,391       609,472       587,807 

Goodwill

      2,021,519       2,013,314       2,011,889       1,900,517       1,884,328 

Core deposit and other intangibles

      172,140       180,867       192,677       162,134       168,135 

Other real estate owned

      11,973       10,646       9,682       9,250       9,986 

Other assets

      969,256       883,288       969,393       888,511       952,692 
                                  
   $ 50,044,686     $ 48,691,445     $ 48,558,866     $ 46,970,226     $ 45,777,747 
                                  

LIABILITIES AND SHAREHOLDERS’ EQUITY

               

Deposits:

               

Noninterest-bearing demand

    $ 9,322,668     $ 9,857,638     $ 9,761,255     $ 10,010,310     $ 9,750,064 

Interest-bearing:

               

Savings and money market

      14,811,615       14,712,294       15,003,091       14,673,478       14,706,943 

Internet money market

      1,707,544       1,544,031       1,464,535       1,185,409       1,117,105 

Time under $100,000

      2,599,595       2,535,881       2,485,720       2,257,967       2,154,894 

Time $100,000 and over

      4,535,644       4,881,994       5,086,948       4,302,056       3,613,164 

Foreign

      2,797,647       2,653,734       2,524,190       2,552,526       2,298,821 
                                  
     35,774,713       36,185,572       36,325,739       34,981,746       33,640,991 

Securities sold, not yet purchased

      21,036       28,456       190,878       175,993       53,802 

Federal funds purchased

      2,391,805       2,221,887       2,132,682       1,993,483       2,286,561 

Security repurchase agreements

      1,070,702       1,061,598       924,922       934,057       1,108,771 

Other liabilities

      560,853       602,173       662,589       621,922       657,657 

Commercial paper

      411,007       228,607       186,978       220,507       265,769 

Federal Home Loan Bank advances and other borrowings:

               

One year or less

      2,037,644       664,509       323,598       517,925       313,259 

Over one year

      128,218       128,832       129,446       137,058       132,854 

Long-term debt

      2,354,317       2,313,015       2,382,173       2,357,721       2,633,759 
                                  

Total liabilities

      44,750,295       43,434,649       43,259,005       41,940,412       41,093,423 
                                  

Minority interest

      37,411       32,094       38,691       42,791       41,158 

Shareholders’ equity:

               

Capital stock:

               

Preferred stock, without par value, authorized 3,000,000 shares:

               

Series A (liquidation preference $1,000 per share); issued and outstanding 240,000 shares

      240,000       240,000       240,000       240,000       –   

Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 106,934,360, 108,034,079, 109,052,149, 106,720,884 and 106,804,606 shares

      2,200,228       2,279,722       2,381,509       2,230,303       2,240,458 

Retained earnings

      2,914,439       2,828,613       2,719,502       2,602,189       2,501,625 

Accumulated other comprehensive loss

      (86,914)      (112,840)      (69,257)      (75,849)      (89,292)

Deferred compensation

      (10,773)      (10,793)      (10,584)      (9,620)      (9,625)
                                  

Total shareholders’ equity

      5,256,980       5,224,702       5,261,170       4,987,023       4,643,166 
                                  
   $   50,044,686     $   48,691,445     $   48,558,866     $   46,970,226     $   45,777,747 
                                  

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 13

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

     Three Months Ended

 

(In thousands, except per share amounts)

    September 30,
2007		     June 30,
2007		    March 31,
2007		     December 31,
2006		     September 30,
2006

Interest income:

            

Interest and fees on loans

    $   724,598     $   697,022    $   674,577     $   665,791     $   638,610

Interest on loans held for sale

      3,695       4,322      3,875       4,066       4,275

Lease financing

      5,461       5,234      5,206       4,974       4,690

Interest on money market investments

      10,841       7,756      6,342       6,116       6,241

Interest on securities:

            

Held to maturity – taxable

      2,343       2,064      2,203       2,220       2,217

Held to maturity – nontaxable

      6,402       6,227      6,091       5,963       5,732

Available for sale – taxable

      61,248       63,825      68,507       68,075       66,078

Available for sale – nontaxable

      2,274       2,398      2,458       2,083       2,089

Trading account

      880       766      1,192       2,009       1,621
                                     

Total interest income

      817,742       789,614      770,451       761,297       731,553
                                     

Interest expense:

            

Interest on savings and money market deposits

      123,586       117,295      113,103       112,105       109,410

Interest on time and foreign deposits

      119,781       120,445      112,885       102,025       86,635

Interest on short-term borrowings

      59,034       43,369      48,692       45,504       46,778

Interest on long-term debt

      38,704       39,158      38,688       42,624       42,219
                                     

Total interest expense

      341,105       320,267      313,368       302,258       285,042
                                     

Net interest income

      476,637       469,347      457,083       459,039       446,511

Provision for loan losses

      55,354       17,763      9,111       26,675       14,363
                                     

Net interest income after provision for loan losses

      421,283       451,584      447,972       432,364       432,148
                                     

Noninterest income:

            

Service charges and fees on deposit accounts

      46,919       45,116      43,385       41,628       40,478

Loan sales and servicing income

      11,607       8,998      9,258       12,332       10,972

Other service charges, commissions and fees

      51,623       49,911      45,153       45,645       45,025

Trust and wealth management income

      9,040       9,125      8,216       8,057       7,147

Income from securities conduit

      3,221       5,968      6,515       7,567       7,741

Dividends and other investment income

      14,720       11,271      11,093       10,360       10,403

Trading and nonhedge derivative income (loss)

      (5,218 )     5,224      5,200       4,991       3,641

Equity securities gains, net

      11,072       100      5,198       5,875       13,180

Fixed income securities gains (losses), net

      58       13      3,701       (554 )     1,563

Other

      2,781       5,615      7,695       3,980       5,179
                                     

Total noninterest income

      145,823       141,341      145,414       139,881       145,329
                                     

Noninterest expense:

            

Salaries and employee benefits

      204,488       198,668      205,587       189,627       190,554

Occupancy, net

      27,203       26,334      26,589       25,170       25,807

Furniture and equipment

      23,996       24,272      23,267       22,623       20,361

Legal and professional services

      10,918       11,242      9,537       11,234       11,386

Postage and supplies

      10,024       9,025      8,047       8,402       8,313

Advertising

      6,624       7,517      6,457       7,100       6,566

Debt extinguishment cost

      –         –        89       7,261       –  

Merger related expense

      682       1,491      2,406       2,199       2,549

Amortization of core deposit and other intangibles

      11,495       11,812      11,129       10,899       10,716

Provision for unfunded lending commitments

      172       1,222      306       731       1,045

Other

      56,429       56,029      58,565       57,680       52,731
                                     

Total noninterest expense

      352,031       347,612      351,979       342,926       330,028
                                     

Income before income taxes and minority interest

      215,075       245,313      241,407       229,319       247,449

Income taxes

      71,853       86,065      88,854       80,081       83,790

Minority interest

      7,490       34      (705 )     2,730       9,985
                                     

Net income

      135,732       159,214      153,258       146,508       153,674

Preferred stock dividend

      3,770       3,607      3,603       3,835       –  
                                     

Net earnings applicable to common shareholders

    $ 131,962     $ 155,607    $ 149,655     $ 142,673     $ 153,674
                                     

Weighted average common shares outstanding during the period:

            

Basic shares

      106,814       107,803      108,414       106,457       106,285

Diluted shares

      107,880       109,124      110,107       108,221       108,061

Net earnings per common share:

            

Basic

    $ 1.24     $ 1.44    $ 1.38     $ 1.34     $ 1.45

Diluted

      1.22       1.43      1.36       1.32       1.42

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 14

CONSOLIDATED STATEMENTS OF INCOME (Continued)

(Unaudited)

 

     Nine Months Ended
September 30,
(In thousands, except per share amounts)    2007    2006

Interest income:

      

Interest and fees on loans

    $   2,096,197    $   1,772,533

Interest on loans held for sale

      11,892      12,376

Lease financing

      15,901      13,316

Interest on money market investments

      24,939      18,598

Interest on securities:

      

Held to maturity – taxable

      6,610      6,641

Held to maturity – nontaxable

      18,720      16,946

Available for sale – taxable

      193,580      204,177

Available for sale – nontaxable

      7,130      6,547

Trading account

      2,838      5,690
             

Total interest income

      2,377,807      2,056,824
             

Interest expense:

      

Interest on savings and money market deposits

      353,984      293,164

Interest on time and foreign deposits

      353,111      213,544

Interest on short-term borrowings

      151,095      118,831

Interest on long-term debt

      116,550      125,600
             

Total interest expense

      974,740      751,139
             

Net interest income

      1,403,067      1,305,685

Provision for loan losses

      82,228      45,897
             

Net interest income after provision for loan losses

      1,320,839      1,259,788
             

Noninterest income:

      

Service charges and fees on deposit accounts

      135,420      119,146

Loan sales and servicing income

      29,863      41,861

Other service charges, commissions and fees

      146,687      126,122

Trust and wealth management income

      26,381      21,913

Income from securities conduit

      15,704      24,639

Dividends and other investment income

      37,084      29,558

Trading and nonhedge derivative income

      5,206      13,510

Equity securities gains, net

      16,370      11,966

Fixed income securities gains, net

      3,772      6,970

Other

      16,091      15,643
             

Total noninterest income

      432,578      411,328
             

Noninterest expense:

      

Salaries and employee benefits

      608,743      562,052

Occupancy, net

      80,126      74,437

Furniture and equipment

      71,535      66,102

Legal and professional services

      31,697      28,900

Postage and supplies

      27,096      24,674

Advertising

      20,598      19,365

Debt extinguishment cost

      89      –  

Impairment losses on long-lived assets

      –        1,304

Merger related expense

      4,579      18,262

Amortization of core deposit and other intangibles

      34,436      32,101

Provision for unfunded lending commitments

      1,700      517

Other

      171,023      159,797
             

Total noninterest expense

      1,051,622      987,511
             

Income before income taxes and minority interest

      701,795      683,605

Income taxes

      246,772      237,869

Minority interest

      6,819      9,119
             

Net income

      448,204      436,617

Preferred stock dividend

      10,980      –  
             

Net earnings applicable to common shareholders

    $ 437,224    $ 436,617
             

Weighted average common shares outstanding during the period:

      

Basic shares

      107,671      105,922

Diluted shares

      109,059      107,950

 

Net earnings per common share:

      

Basic

    $ 4.06    $ 4.12

Diluted

      4.01      4.04

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 15

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

(Unaudited)

 

 

 

 

(In thousands, except per share amounts)

    Preferred
stock		   

Common

stock

    Retained
earnings		    Accumulated
other
comprehensive
income (loss)		    Deferred
compensation		    Total
shareholders'
equity

Balance, December 31, 2006

    $   240,000    $   2,230,303     $   2,602,189     $   (75,849)    $   (9,620)    $   4,987,023 

Cumulative effect of change in accounting principle, adoption of FIN 48

            10,408             10,408 

Comprehensive income:

                  

Net income for the period

            448,204             448,204 

Other comprehensive loss, net of tax:

                  

Net realized and unrealized holding losses on investments and retained interests

               (49,338)      

Foreign currency translation

               12       

Reclassification for net realized gains on investments recorded in operations

               (3,889)      

Net unrealized gains on derivative instruments

               42,150       
                     

Other comprehensive loss

               (11,065)         (11,065)
                     

Total comprehensive income

                     437,139 

Stock redeemed and retired

         (321,974)               (321,974)

Net stock options exercised

         66,795                66,795 

Common stock issued in acquisition

         206,075                206,075 

Share-based compensation

         19,029                19,029 

Dividends declared on preferred stock

            (10,980)            (10,980)

Cash dividends on common stock, $1.25 per share

            (135,382)            (135,382)

Change in deferred compensation

                  (1,153)      (1,153)
                                         

Balance, September 30, 2007

    $ 240,000    $ 2,200,228     $ 2,914,439     $ (86,914)    $ (10,773)    $ 5,256,980 
                                         

Balance, December 31, 2005

    $ –      $ 2,156,732     $ 2,179,885     $ (83,043)    $ (16,310)    $ 4,237,264 

Comprehensive income:

                  

Net income for the period

            436,617             436,617 

Other comprehensive loss, net of tax:

                  

Net realized and unrealized holding losses on investments and retained interests

               (11,134)      

Foreign currency translation

               646       

Reclassification for net realized gains on investments recorded in operations

               (2,424)      

Net unrealized gains on derivative instruments

               6,663       
                     

Other comprehensive loss

               (6,249)         (6,249)
                     

Total comprehensive income

                     430,368 

Stock redeemed and retired

         (1,439)               (1,439)

Net stock options exercised

         79,014                79,014 

Reclassification of deferred compensation, adoption of SFAS 123R

         (11,111)            11,111       –  

Share-based compensation

         17,262                17,262 

Cash dividends on common stock, $1.08 per share

            (114,877)            (114,877)

Change in deferred compensation

                  (4,426)      (4,426)
                                         

Balance, September 30, 2006

    $ –      $ 2,240,458     $ 2,501,625     $ (89,292)    $ (9,625)    $ 4,643,166 
                                         

Total comprehensive income for the three months ended September 30, 2007 and 2006 was $161,658 and $212,709, respectively.

 

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ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 16

Nonperforming Assets

(Unaudited)

 

 

(In thousands)

    September 30,
2007		   

June 30,

2007

    March 31,
2007		    December 31,
2006		    September 30,
2006

Nonaccrual loans

    $   174,315       $   82,314       $   69,580       $   66,405       $   64,650   

Restructured loans

      10,287         2,438         132         164         179   

Other real estate owned

      11,973         10,646         9,682         9,250         9,986   

Other assets

      –           –           3,130         6,175         –     
                                  

Total

    $ 196,575       $ 95,398       $ 82,524       $ 81,994       $ 74,815   
                                  

% of net loans and leases* and other real estate owned

      0.52%      0.26%      0.23%      0.24%      0.22%

Accruing loans past due 90 days or more

    $ 64,516       $ 47,782       $ 56,880       $ 43,727       $ 20,407   
                                  

% of net loans and leases*

      0.17%      0.13%      0.16%      0.13%      0.06%

*Includes loans held for sale.

               

Allowances for Credit Losses

(Unaudited)

              
     Three Months Ended

 

(In thousands)

    September 30,
2007		   

June 30,

2007

    March 31,
2007		    December 31,
2006		    September 30,
2006

Allowance for Loan Losses

               

Balance at beginning of period

    $   380,295       $   371,213       $   365,150       $   356,342       $   348,475   

Allowance of company acquired

      578         –           7,061         –           –     

Add:

               

Provision for losses

      55,354         17,763         9,111         26,675         14,363   

Deduct:

               

Loan and lease charge-offs

      (20,815)        (13,767)        (14,079)        (23,219)        (10,882)  

Recoveries

      2,753         5,086         3,970         5,352         4,386   
                                  

Net loan and lease charge-offs

      (18,062)        (8,681)        (10,109)        (17,867)        (6,496)  
                                  

Balance at end of period

    $ 418,165       $ 380,295       $ 371,213       $ 365,150       $ 356,342   
                                  

Ratio of allowance for loan losses to net loans and leases outstanding at period end

      1.11%      1.03%      1.03%      1.05%      1.06%

Ratio of allowance for loan losses to nonperforming loans at period end

      226.52%      448.72%      532.50%      548.53%      549.66%

Allowance for Unfunded Lending Commitments

               

Balance at beginning of period

    $ 21,222       $ 20,000       $ 19,368       $ 18,637       $ 17,592   

Allowance of company acquired

      –           –           326         –           –     

Provision charged against earnings

      172         1,222         306         731         1,045   
                                  

Balance at end of period

    $ 21,394       $ 21,222       $ 20,000       $ 19,368       $ 18,637   
                                  

Total Allowances for Credit Losses

               

Allowance for loan losses

    $ 418,165       $ 380,295       $ 371,213       $ 365,150       $ 356,342   

Allowance for unfunded lending commitments

      21,394         21,222         20,000         19,368         18,637   
                                  

Total allowances for credit losses

    $ 439,559       $ 401,517       $ 391,213       $ 384,518       $ 374,979   
                                  

Ratio of total allowances for credit losses to net loans and leases outstanding at period end

      1.16%      1.09%      1.09%      1.11%      1.11%

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 17

Sold Loans Being Serviced

(Unaudited)

 

     Three Months Ended

 

(In thousands)

    September 30,
2007		   

June 30,

2007

   

March 31,

2007

    December 31,
2006		    September 30,
2006

Balance at beginning of period

    $   2,201,897     $   2,401,355     $   2,586,451     $   2,796,644     $   3,003,101 

New loans sold

      8,162       19,173       10,931       30,061       46,073 

Payments and other reductions

      (187,917)      (218,631)      (196,027)      (240,254)      (252,530)
                                  

Balance at end of period

    $ 2,022,142     $ 2,201,897     $ 2,401,355     $ 2,586,451     $ 2,796,644 
                                  

 

Loan Balances By Portfolio Type

(Unaudited)

 

               

 

(In millions)

    September 30,
2007		   

June 30,

2007

   

March 31,

2007

    December 31,
2006		    September 30,
2006

Loans held for sale

    $ 201    $ 226    $ 267    $ 253    $ 268

Commercial lending:

               

Commercial and industrial

      9,260      8,922      8,420      8,422      7,846

Leasing

      474      450      447      443      420

Owner occupied

      7,347      7,123      6,867      6,260      5,855
                                  

Total commercial lending

      17,081      16,495      15,734      15,125      14,121

Commercial real estate:

               

Construction and land development

      8,396      8,037      7,739      7,483      7,362

Term

      5,054      5,084      5,215      4,952      4,960
                                  

Total commercial real estate

      13,450      13,121      12,954      12,435      12,322

Consumer:

               

Home equity credit line and other consumer real estate

      2,033      1,968      1,935      1,850      1,944

1-4 family residential

      4,178      4,134      4,176      4,192      4,255

Bankcard and other revolving plans

      299      306      289      295      281

Other

      467      456      465      457      458
                                  

Total consumer

      6,977      6,864      6,865      6,794      6,938

Foreign loans

      27      12      3      3      3

Other receivables

      243      224      276      209      200
                                  

Total loans

    $   37,979    $   36,942    $   36,099    $   34,819    $   33,852
                                  

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 18

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

 

    

Three Months Ended

September 30, 2007

   

Three Months Ended

June 30, 2007

 

(In thousands)

   

Average

balance

    Amount of
interest (1)		    Average
rate		   

Average

balance

    Amount of
interest (1)		    Average
rate

ASSETS

                  

Money market investments

    $ 784,286     $ 10,841    5.48%    $ 581,814     $ 7,756    5.35%

Securities:

                  

Held to maturity

      701,587       12,192    6.89%      666,283       11,644    7.01%

Available for sale

      4,462,480       64,746    5.76%      4,707,154       67,514    5.75%

Trading account

      57,655       880    6.06%      53,459       766    5.75%
                                 

Total securities

      5,221,722       77,818    5.91%      5,426,896       79,924    5.91%
                                 

Loans:

                  

Loans held for sale

      235,345       3,695    6.23%      254,693       4,322    6.81%

Net loans and leases (2)

      36,959,505       731,866    7.86%      35,888,264       704,325    7.87%
                                   

Total loans and leases

      37,194,850       735,561    7.85%      36,142,957       708,647    7.86%
                                   

Total interest-earning assets

      43,200,858       824,220    7.57%      42,151,667       796,327    7.58%
                         

Cash and due from banks

      1,421,895             1,494,407       

Allowance for loan losses

      (390,078)            (375,388)       

Goodwill

      2,015,532             2,012,270       

Core deposit and other intangibles

      177,864             188,843       

Other assets

      2,477,248             2,449,988       
                         

Total assets

    $   48,903,319           $   47,921,787       
                         

LIABILITIES

                  

Interest-bearing deposits:

                  

Savings and NOW

    $ 4,337,513       9,942    0.91%    $ 4,511,110       10,179    0.91%

Money market

      10,466,124       93,156    3.53%      10,245,788       88,578    3.47%

Internet money market

      1,619,423       20,488    5.02%      1,484,748       18,538    5.01%

Time under $100,000

      2,577,033       28,831    4.44%      2,518,631       27,382    4.36%

Time $100,000 and over

      4,688,695       57,710    4.88%      5,091,202       61,864    4.87%

Foreign

      2,703,397       33,240    4.88%      2,561,459       31,199    4.89%
                                 

Total interest-bearing deposits

      26,392,185       243,367    3.66%      26,412,938       237,740    3.61%
                                 

Borrowed funds:

                  

Securities sold, not yet purchased

      20,673       252    4.84%      18,426       227    4.94%

Federal funds purchased and security repurchase agreements

      3,350,693       40,123    4.75%      2,962,417       35,378    4.79%

Commercial paper

      293,432       4,063    5.49%      194,134       2,647    5.47%

FHLB advances and other borrowings:

                  

One year or less

      1,115,750       14,596    5.19%      384,648       5,117    5.34%

Over one year

      128,534       1,862    5.75%      129,147       1,853    5.75%

Long-term debt

      2,329,325       36,842    6.28%      2,366,050       37,305    6.32%
                                 

Total borrowed funds

      7,238,407       97,738    5.36%      6,054,822       82,527    5.47%
                                 

Total interest-bearing liabilities

      33,630,592       341,105    4.02%      32,467,760       320,267    3.96%
                         

Noninterest-bearing deposits

      9,364,415             9,551,265       

Other liabilities

      643,510             634,370       
                         

Total liabilities

      43,638,517             42,653,395       

Minority interest

      37,527             35,009       

Shareholders' equity:

                  

Preferred equity

      240,000             240,000       

Common equity

      4,987,275             4,993,383       
                         

Total shareholders' equity

      5,227,275             5,233,383       
                         

Total liabilities and shareholders' equity

    $ 48,903,319           $ 47,921,787       
                         

Spread on average interest-bearing funds

          3.55%          3.62%

Taxable-equivalent net interest income and net yield on interest-earning assets

       $   483,115    4.44%       $   476,060    4.53%
                         

(1) Taxable-equivalent rates used where applicable.

(2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.

 

- more -

ZIONS BANCORPORATION AND SUBSIDIARIES

Press Release – Page 19

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)

 

    

Nine Months Ended

September 30, 2007

   

Nine Months Ended

September 30, 2006

 

(In thousands)

   

Average

balance

    Amount of
interest (1)		    Average
rate		   

Average

balance

    Amount of
interest (1)		    Average
rate

ASSETS

                  

Money market investments

    $ 620,369     $ 24,939    5.37%    $ 482,621     $ 18,598    5.15%

Securities:

                  

Held to maturity

      679,113       35,410    6.97%      640,245       32,712    6.83%

Available for sale

      4,732,689       204,549    5.78%      5,053,420       214,249    5.67%

Trading account

      68,245       2,838    5.56%      156,288       5,690    4.87%
                                 

Total securities

      5,480,047       242,797    5.92%      5,849,953       252,651    5.77%
                                 

Loans:

                  

Loans held for sale

      246,360       11,892    6.45%      266,050       12,376    6.22%

Net loans and leases (2)

      36,008,159       2,118,008    7.86%      31,568,460       1,791,205    7.59%
                                 

Total loans and leases

      36,254,519       2,129,900    7.85%      31,834,510       1,803,581    7.57%
                                 

Total interest-earning assets

      42,354,935       2,397,636    7.57%      38,167,084       2,074,830    7.27%
                         

Cash and due from banks

      1,499,900             1,479,054       

Allowance for loan losses

      (380,121)            (345,925)      

Goodwill

      2,003,972             1,884,462       

Core deposit and other intangibles

      186,884             185,619       

Other assets

      2,476,001             2,340,239       
                         

Total assets

    $   48,141,571           $   43,710,533       
                         

LIABILITIES

                  

Interest-bearing deposits:

                  

Savings and NOW

    $ 4,452,344       30,181    0.91%    $ 4,157,492       21,338    0.69%

Money market

      10,320,360       267,985    3.47%      10,815,031       240,367    2.97%

Internet money market

      1,476,561       55,818    5.05%      928,579       31,459    4.53%

Time under $100,000

      2,510,342       81,939    4.36%      2,012,586       53,998    3.59%

Time $100,000 and over

      4,867,183       176,992    4.86%      2,995,997       93,296    4.16%

Foreign

      2,570,641       94,180    4.90%      1,964,021       66,250    4.51%
                                 

Total interest-bearing deposits

      26,197,431       707,095    3.61%      22,873,706       506,708    2.96%
                                 

Borrowed funds:

                  

Securities sold, not yet purchased

      30,892       1,060    4.59%      60,818       2,052    4.51%

Federal funds purchased and security repurchase agreements

      3,104,079       110,978    4.78%      2,734,524       86,930    4.25%

Commercial paper

      222,523       9,075    5.45%      215,100       8,217    5.11%

FHLB advances and other borrowings:

                  

One year or less

      759,780       29,982    5.28%      550,737       21,632    5.25%

Over one year

      131,393       5,686    5.79%      153,524       6,443    5.61%

Long-term debt

      2,356,434       110,864    6.29%      2,479,316       119,157    6.43%
                                 

Total borrowed funds

      6,605,101       267,645    5.42%      6,194,019       244,431    5.28%
                                 

Total interest-bearing liabilities

      32,802,532       974,740    3.97%      29,067,725       751,139    3.45%
                         

Noninterest-bearing deposits

      9,438,778             9,517,248       

Other liabilities

      644,041             665,822       
                         

Total liabilities

      42,885,351             39,250,795       

Minority interest

      37,747             31,556       

Shareholders’ equity:

                  

Preferred equity

      240,000             –         

Common equity

      4,978,473             4,428,182       
                         

Total shareholders’ equity

      5,218,473             4,428,182       
                         

Total liabilities and shareholders’ equity

    $ 48,141,571           $ 43,710,533       
                         

Spread on average interest-bearing funds

          3.60%          3.82%

Taxable-equivalent net interest income and net yield on interest-earning assets

       $   1,422,896    4.49%       $   1,323,691    4.64%
                         

(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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