ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ - FORM 8-K - EX-99.1 - PRESS RELEASE

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ - FORM 8-K - EX-99.1 - PRESS RELEASE - July 23, 2012

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***FOR IMMEDIATE RELEASE***

ZIONS BANCORPORATION REPORTS EARNINGS OF $0.30

PER DILUTED COMMON SHARE FOR SECOND QUARTER 2012

SALT LAKE CITY, July 23, 2012 – Zions Bancorporation (NASDAQ: ZION) (“Zions” or “the Company”) today reported second quarter net earnings applicable to common shareholders of $55.2 million or $0.30 per diluted common share, compared to $25.5 million or $0.14 per diluted share for the first quarter of 2012. Net earnings applicable to common shareholders were favorably impacted this quarter by a 43% reduction in preferred stock dividends due primarily to the $700 million TARP redemption and related warrant amortization in the first quarter.

Adjusted for the noncash effects in the second quarter of the discount amortization on conversion of subordinated debt and additional accretion (net of expense) on acquired FDIC-supported loans, net earnings applicable to common shareholders were $72.9 million or $0.40 per diluted share for the second quarter of 2012, compared to $40.5 million or $0.22 per diluted share for the first quarter of 2012.

Second Quarter 2012 Highlights

Credit quality improved in nearly all major geographies and loan types. Net charge-offs decreased 20% to $43 million.

Loans and leases, excluding FDIC-supported loans, increased $328 million to $36.2 billion at June 30, 2012.

Net interest income decreased 2.3% to $432 million from $442 million in the first quarter. The core net interest margin decreased 9 basis points to 3.72% from 3.81% in the first quarter.

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ZIONS BANCORPORATION

Press Release – Page 2

July 23, 2012

“We continue to enjoy strong improvement in credit trends and expect classified loans to continue to trend lower,” said Harris H. Simmons, chairman and chief executive officer. “Furthermore, we were pleased to experience a moderate degree of loan growth primarily driven by business loan growth; however, our business customers generally remain quite cautious, which is constraining revenue growth,” continued Mr. Simmons. “Finally, supported by the continued improvement in credit quality, we believe we are on track to redeem the balance of the TARP preferred stock in the second half of 2012.”

Asset Quality

Net loan and lease charge-offs decreased 20% to $43 million for the second quarter of 2012, compared to $55 million for the first quarter of 2012. Net charge-offs declined primarily in commercial and industrial and term commercial real estate loans.

Nonperforming lending-related assets declined 9% to $0.9 billion at June 30, 2012 from $1.0 billion at March 31, 2012. Nonaccrual loans declined 9% to $793 million at June 30, 2012 from $872 million at March 31, 2012. The ratio of nonperforming lending-related assets to loans and leases and other real estate owned decreased to 2.53% at June 30, 2012, compared to 2.79% at March 31, 2012.

Classified loans, excluding FDIC-supported loans, decreased approximately 9% to $1.9 billion at June 30, 2012, compared to $2.1 billion at March 31, 2012. Approximately 73% of classified loans were current as to principal and interest for both the second and first quarters of 2012.

The provision for loan losses was $10.9 million for the second quarter of 2012, compared to $15.7 million for the first quarter of 2012.

The allowance for credit losses of approximately $1.1 billion, or 2.92% of loans and leases at June 30, 2012, was essentially unchanged from the balance at March 31, 2012.

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ZIONS BANCORPORATION

Press Release – Page 3

July 23, 2012

Loans

Loans and leases, excluding FDIC-supported loans, increased $328 million to $36.2 billion at June 30, 2012, compared to $35.9 billion at March 31, 2012. The increases were predominantly in commercial and industrial and 1-4 family residential loans and were widespread geographically. Construction and land development loans were essentially unchanged from March 31, 2012 and therefore did not detract from net loan growth during the quarter. Average loans and leases, excluding FDIC-supported loans, remained essentially the same at $36.1 billion compared to the first quarter of 2012.

Deposits

Average total deposits for the second quarter of 2012 increased $571 million or 1.3% to $42.9 billion compared to $42.4 billion for the first quarter of 2012. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the second quarter of 2012, which were $16.2 billion compared to $15.7 billion for the first quarter of 2012. The ratio of loans to deposits was 85.4% at June 30, 2012, compared to 84.9% at March 31, 2012.

Debt and Shareholders’ Equity

As previously reported, on May 1, 2012, the Company issued an additional $100 million of the 4.5% senior notes, bringing the total to $400 million of these notes that are due March 27, 2017. The $100 million notes were sold at a price of 100.249%, with a yield to maturity of 4.442%. On June 20, 2012, the Company issued $158.45 million of 4.0% senior notes due June 20, 2016 at a price of 97.5%, with a yield to maturity of 4.693%. Total net proceeds to the Company from the second quarter issuances were approximately $253 million.

The Company redeemed all $254.9 million of senior notes on their maturity date of June 21, 2012 that were guaranteed under the FDIC’s Temporary Liquidity Guarantee Program. The Company has no other notes outstanding under this program.

On May 7, 2012, the Company sold at par $143.75 million of Series F 7.9% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, which qualifies as Tier 1 capital. The Company redeemed on the June 15, 2012 call date all $142.5 million of Series E 11.0% preferred stock.

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ZIONS BANCORPORATION

Press Release – Page 4

July 23, 2012

As previously announced, effective May 16, 2012, approximately $50.2 million of convertible subordinated debt was converted into the Company’s Series C preferred stock. Accelerated discount amortization on the converted debt increased interest expense by a pretax noncash amount of approximately $16.2 million ($13.2 million after-tax) in the second quarter of 2012, compared to $12.2 million ($9.9 million after-tax) in the first quarter of 2012.

The estimated common equity tier 1 capital ratio was 9.77% at June 30, 2012, compared to 9.71% at March 31, 2012.

Net Interest Income

Net interest income decreased 2.3% to $432 million for the second quarter of 2012, compared to $442 million for the first quarter of 2012. Core net interest income, adjusted for discount amortization on convertible subordinated debt and accretion on acquired loans, was approximately $444 million for the second quarter of 2012, compared to $453 million for the first quarter of 2012.

The net interest margin decreased 11 basis points to 3.62% in the second quarter of 2012, compared to 3.73% in the first quarter of 2012. The core net interest margin decreased 9 basis points to 3.72% in the second quarter, compared to 3.81% in the first quarter. The decrease in the core net interest margin was primarily due to reduced loan yields, and to a higher cost and amount of long-term debt outstanding, much of which was deposited into a low-yielding cash account because it is intended to be used for the redemption of the remaining TARP preferred stock in the second half of 2012.

Investment Securities

During the second quarter of 2012, the Company recognized credit-related other-than-temporary impairment (“OTTI”) on collateralized debt obligations (“CDOs”) of $7.3 million or $0.02 per diluted share, compared to $10.2 million or $0.03 per diluted share during the first quarter of 2012. OTTI this quarter was due primarily to credit deterioration at a small number of banks. Reperformance of deferring banks continues to be a favorable trend. Partially offsetting the financial impact of OTTI on CDOs were $3.3 million of fixed income securities gains that resulted from cash principal paydowns of CDOs previously written down.

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ZIONS BANCORPORATION

Press Release – Page 5

July 23, 2012

The following table stratifies the CDOs into performing tranches without credit impairment and nonperforming tranches at June 30, 2012:

	June 30, 2012
						Net unrealized			% of carrying
						losses		Weighted	value to par
(Amounts in millions)	No. of		Par	Amortized	Carrying	recognized		average	June 30,	March 31,
	tranches		amount	cost	value	in OCI 1		discount rate 2	2012	2012	Change
Performing CDOs
Predominantly bank CDOs		30	$ 904	$ 805	$ 572	$	(233)	7.02%	63%	66%	-3%
Insurance-only CDOs		21	450	445	330		(115)	7.21%	73%	74%	-1%
Other CDOs		7	82	71	62		(9)	7.54%	76%	78%	-2%
Total performing CDOs		58	1,436	1,321	964		(357)	7.11%	67%	69%	-2%

Nonperforming CDOs 3
Deferring interest, but no credit impairment		3	72	72	21		(51)	12.36%	29%	25%	4%
Credit impairment prior to last 12 months		33	595	438	136		(302)	12.84%	23%	21%	2%
Credit impairment during last 12 months		23	444	278	72		(206)	13.37%	16%	14%	2%
Total nonperforming CDOs		59	1,111	788	229		(559)	13.02%	21%	19%	2%

Total CDOs		117	$ 2,547	$ 2,109	$ 1,193	$	(916)	9.69%	47%	48%	-1%


1 Other comprehensive income, amounts presented are pretax.
2 Margin over LIBOR
3 Defined as either deferring current interest (“PIKing”) or OTTI.

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Noninterest Income

Noninterest income for the second quarter of 2012 was $123.0 million, compared to $107.0 million for the first quarter of 2012. The increase mainly resulted from higher dividends and other investment income from private equity investments primarily at Amegy.

Noninterest Expense

Noninterest expense for the second quarter of 2012 was $401.7 million compared to $392.4 million for the first quarter of 2012. The increase was due primarily to an $8.6 million increase in the provision for unfunded lending commitments compared to the prior quarter, driven by an increase in the volume of loan commitments.

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ZIONS BANCORPORATION

Press Release – Page 6

July 23, 2012

Conference Call

Zions will host a conference call to discuss these second quarter results at 5:30 p.m. ET this afternoon (July 23, 2012). Media representatives, analysts and the public are invited to listen to this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 93192595, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. A replay of the call will be available from approximately 7:30 p.m. ET on Monday, July 23, 2012, until midnight ET on Monday, July 30, 2012, by dialing 855-859-2056 (domestic and international) and entering the passcode. 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 Western markets. Zions operates its banking businesses under local management teams and community identities through approximately 500 offices in 10 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 press release that are based on other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either internationally, nationally or locally in areas in which the Company conducts its operations, including changes in securities markets and valuations in structured securities and other assets; changes in governmental policies and programs resulting from general economic and financial market conditions; changes in interest and funding rates; continuing consolidation in the financial services industry; new private and governmental legal actions or changes in existing private and governmental legal actions; 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 (including The Dodd-Frank Wall Street Reform and Consumer Protection Act); and changes in accounting policies, procedures or determinations as may be required by the Financial Accounting Standards Board or other regulatory agencies.

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ZIONS BANCORPORATION

Press Release – Page 7

July 23, 2012

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

Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 8
FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended
(In thousands, except share, per share, and ratio data)	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
PER COMMON SHARE
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value per common share		25.48			25.25			25.02			24.78			24.88
Tangible common equity per common share		19.65			19.39			19.14			18.87			18.95

SELECTED RATIOS
Return on average assets		0.70	%		0.69	%		0.67	%		0.84	%		0.57	%
Return on average common equity		4.71	%		2.21	%		3.84	%		5.58	%		2.53	%
Net interest margin		3.62	%		3.73	%		3.86	%		3.99	%		3.62	%

Capital Ratios
Tangible common equity ratio		6.91	%		6.89	%		6.77	%		6.90	%		6.95	%
Tangible equity ratio		10.35	%		10.24	%		11.33	%		11.56	%		11.58	%
Average equity to average assets		12.37	%		13.31	%		13.27	%		13.51	%		13.42	%

Risk-Based Capital Ratios 1
Common equity tier 1 capital		9.77	%		9.71	%		9.57	%		9.53	%		9.36	%
Tier 1 leverage		12.30	%		12.17	%		13.40	%		13.48	%		13.44	%
Tier 1 risk-based capital		15.01	%		14.83	%		16.13	%		16.10	%		15.87	%
Total risk-based capital		16.87	%		16.76	%		18.06	%		18.12	%		18.01	%

Taxable-equivalent net interest income	$	436,610		$	447,161		$	466,699		$	475,580		$	421,226

Weighted average common and common-
equivalent shares outstanding		183,136,631			182,963,828			182,823,190			182,857,702			182,728,185
Common shares outstanding		184,117,522			184,228,178			184,135,388			184,294,782			184,311,290

1 Ratios for June 30, 2012 are estimates.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 9
CONSOLIDATED BALANCE SHEETS
	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except share amounts)	2012			2012			2011			2011			2011
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
ASSETS
Cash and due from banks	$	1,124,673		$	1,082,186		$	1,224,350		$	1,102,768		$	1,035,028
Money market investments:
Interest-bearing deposits		7,887,175			7,629,399			7,020,895			5,118,066			4,924,992
Federal funds sold and security resell agreements		83,529			52,634			102,159			165,106			123,132
Investment securities:
Held-to-maturity, at adjusted cost (approximate fair value
$715,710, $728,479, $729,974, $715,608, and $762,998)		773,016			797,149			807,804			791,569			829,702
Available-for-sale, at fair value		3,167,590			3,223,086			3,230,795			3,970,602			4,084,963
Trading account, at fair value		20,539			19,033			40,273			49,782			51,152
		3,961,145			4,039,268			4,078,872			4,811,953			4,965,817

Loans held for sale		139,245			184,579			201,590			159,300			158,943

Loans, net of unearned income and fees:
Loans and leases		36,231,104			35,903,475			36,393,782			35,924,054			35,969,702
FDIC-supported loans		642,246			687,126			750,870			800,454			853,875
		36,873,350			36,590,601			37,144,652			36,724,508			36,823,577
Less allowance for loan losses		971,716			1,010,059			1,049,958			1,148,903			1,237,733
Loans, net of allowance		35,901,634			35,580,542			36,094,694			35,575,605			35,585,844

Other noninterest-bearing investments		867,882			875,037			865,231			860,045			858,678
Premises and equipment, net		714,913			715,815			719,276			726,503			722,600
Goodwill		1,015,129			1,015,129			1,015,129			1,015,129			1,015,161
Core deposit and other intangibles		59,277			63,538			67,830			72,571			77,346
Other real estate owned		144,816			158,592			153,178			203,173			238,990
Other assets		1,507,594			1,499,588			1,605,905			1,721,101			1,654,883
	$	53,407,012		$	52,896,307		$	53,149,109		$	51,531,320		$	51,361,414

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	16,498,248		$	16,185,140		$	16,110,857		$	14,911,729		$	14,475,383
Interest-bearing:
Savings and NOW		7,505,841			7,406,910			7,159,101			6,711,002			6,555,306
Money market		14,439,389			14,813,495			14,616,740			14,576,527			14,948,065
Time		3,211,942			3,326,717			3,413,550			3,536,755			3,775,409
Foreign		1,504,827			1,366,826			1,575,361			1,627,135			1,437,067
		43,160,247			43,099,088			42,875,609			41,363,148			41,191,230

Securities sold, not yet purchased		104,882			47,404			44,486			30,070			42,709
Federal funds purchased and security repurchase agreements		759,591			486,808			608,098			630,901			630,058
Other short-term borrowings		7,621			19,839			70,273			125,290			147,945
Long-term debt		2,274,571			2,283,121			1,954,462			1,898,439			1,879,669
Reserve for unfunded lending commitments		103,586			98,718			102,422			98,062			100,264
Other liabilities		507,151			474,551			510,531			466,493			456,448
Total liabilities		46,917,649			46,509,529			46,165,881			44,612,403			44,448,323

Shareholders’ equity:
Preferred stock, without par value, authorized 4,400,000 shares		1,800,473			1,737,633			2,377,560			2,354,523			2,329,370
Common stock, without par value; authorized 350,000,000
shares; issued and outstanding 184,117,522, 184,228,178,
184,135,388, 184,294,782 and 184,311,290 shares		4,157,525			4,162,522			4,163,242			4,160,697			4,158,369
Retained earnings		1,110,120			1,060,525			1,036,590			994,380			931,345
Accumulated other comprehensive income (loss)		(576,147	)		(571,567	)		(592,084	)		(588,834	)		(504,491	)
Controlling interest shareholders’ equity		6,491,971			6,389,113			6,985,308			6,920,766			6,914,593
Noncontrolling interests		(2,608	)		(2,335	)		(2,080	)		(1,849	)		(1,502	)
Total shareholders’ equity		6,489,363			6,386,778			6,983,228			6,918,917			6,913,091
	$	53,407,012		$	52,896,307		$	53,149,109		$	51,531,320		$	51,361,414

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 10
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended
(In thousands, except per share amounts)	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Interest income:
Interest and fees on loans	$	478,569		$	486,615		$	504,243		$	520,133		$	523,741
Interest on money market investments		5,099			4,628			4,308			3,482			3,199
Interest on securities:
Held-to-maturity		9,325			8,959			9,106			8,937			9,009
Available-for-sale		25,090			23,158			21,268			21,382			22,179
Trading account		148			338			548			462			538
Total interest income		518,231			523,698			539,473			554,396			558,666

Interest expense:
Interest on deposits		20,823			23,413			26,645			31,093			34,257
Interest on short-term borrowings		256			779			1,221			1,501			1,783
Interest on long-term debt		65,165			57,207			49,699			51,207			106,454
Total interest expense		86,244			81,399			77,565			83,801			142,494

Net interest income		431,987			442,299			461,908			470,595			416,172
Provision for loan losses		10,853			15,664			(1,476	)		14,553			1,330
Net interest income after provision for loan losses		421,134			426,635			463,384			456,042			414,842

Noninterest income:
Service charges and fees on deposit accounts		43,426			43,532			42,873			44,154			42,878
Other service charges, commissions and fees		38,554			34,226			38,539			45,308			43,958
Trust and wealth management income		8,057			6,374			6,481			6,269			7,179
Capital markets and foreign exchange		7,342			5,734			8,106			7,729			8,358
Dividends and other investment income		21,542			9,480			7,805			9,356			17,239
Loan sales and servicing income		10,287			8,352			6,058			6,165			9,836
Fair value and nonhedge derivative income (loss)		(6,784	)		(4,400	)		(4,677	)		(5,718	)		4,195
Equity securities gains (losses), net		107			9,145			1,961			5,289			(1,636	)
Fixed income securities gains (losses), net		5,519			720			1,288			13,035			(2,396	)
Impairment losses on investment securities:
Impairment losses on investment securities		(24,026	)		(18,273	)		(12,351	)		(55,530	)		(6,339	)
Noncredit-related losses on securities not expected to
be sold (recognized in other comprehensive income)		16,718			8,064			265			42,196			1,181
Net impairment losses on investment securities		(7,308	)		(10,209	)		(12,086	)		(13,334	)		(5,158	)
Other		2,280			4,045			1,956			2,789			3,896
Total noninterest income		123,022			106,999			98,304			121,042			128,349

Noninterest expense:
Salaries and employee benefits		220,765			224,634			220,290			216,855			222,138
Occupancy, net		28,169			27,951			27,899			29,040			27,588
Furniture and equipment		27,302			26,792			27,036			26,852			26,153
Other real estate expense		6,440			7,810			14,936			20,564			17,903
Credit related expense		12,415			13,485			14,213			15,379			17,124
Provision for unfunded lending commitments		4,868			(3,704	)		4,360			(2,202	)		(1,904	)
Legal and professional services		12,947			11,096			14,974			8,897			8,432
Advertising		6,618			5,807			7,780			6,511			5,962
FDIC premiums		10,444			10,919			12,012			12,573			15,232
Amortization of core deposit and other intangibles		4,262			4,291			4,741			4,773			4,855
Other		67,426			63,291			76,799			69,776			72,773
Total noninterest expense		401,656			392,372			425,040			409,018			416,256

Income before income taxes		142,500			141,262			136,648			168,066			126,935
Income taxes		51,036			51,859			47,877			59,348			54,325
Net income		91,464			89,403			88,771			108,718			72,610
Net loss applicable to noncontrolling interests		(273	)		(273	)		(248	)		(375	)		(265	)
Net income applicable to controlling interest		91,737			89,676			89,019			109,093			72,875
Preferred stock dividends		(36,522	)		(64,187	)		(44,599	)		(43,928	)		(43,837	)
Net earnings applicable to common shareholders	$	55,215		$	25,489		$	44,420		$	65,165		$	29,038

Weighted average common shares outstanding during the period:
Basic shares		182,985			182,798			182,703			182,676			182,472
Diluted shares		183,137			182,964			182,823			182,858			182,728

Net earnings per common share:
Basic	$	0.30		$	0.14		$	0.24		$	0.35		$	0.16
Diluted		0.30			0.14			0.24			0.35			0.16

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 11

Loan Balances By Portfolio Type
(Unaudited)

(In millions)	June 30,			March 31,			December 31,			September 30,			June 30,
		2012			2012			2011			2011			2011
Commercial:
Commercial and industrial	$	10,383		$	10,157		$	10,335		$	9,733		$	9,520
Leasing		406			394			380			366			365
Owner occupied		7,811			7,887			8,159			8,326			8,419
Municipal		477			441			441			440			448
Total commercial		19,077			18,879			19,315			18,865			18,752

Commercial real estate:
Construction and land development		2,099			2,100			2,265			2,467			2,748
Term		8,011			8,070			7,883			7,723			7,701
Total commercial real estate		10,110			10,170			10,148			10,190			10,449

Consumer:
Home equity credit line		2,181			2,167			2,187			2,161			2,143
1-4 family residential		4,019			3,875			3,921			3,891			3,807
Construction and other consumer real estate		328			316			306			303			308
Bankcard and other revolving plans		284			274			291			278			280
Other		232			223			226			236			231
Total consumer		7,044			6,855			6,931			6,869			6,769

FDIC-supported loans 1		642			687			751			801			854
Total loans	$	36,873		$	36,591		$	37,145		$	36,725		$	36,824

1 FDIC-supported loans represent loans acquired from the FDIC subject to loss sharing agreements.


FDIC-Supported Loans – Effect of Higher Accretion
and Impact on FDIC Indemnification Asset
(Unaudited)

(In thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2012			2012			2011			2011			2011
Balance sheet:

Change in assets from reestimation of cash flows –
increase (decrease):
FDIC-supported loans	$	14,761		$	13,171		$	17,003		$	20,642		$	21,467
FDIC indemnification asset (included in other assets)		(11,233	)		(10,002	)		(13,126	)		(15,431	)		(14,975	)

Balance at end of period:
FDIC-supported loans		642,246			687,126			750,870			800,454			853,875
FDIC indemnification asset (included in other assets)		100,561			106,477			120,358			135,299			150,557

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2012			2012			2011			2011			2011
Statement of income:

Interest income:
Interest and fees on loans	$	14,761		$	13,171		$	17,003		$	20,642		$	21,467

Noninterest expense:
Other noninterest expense		11,233			10,002			13,126			15,431			14,975
Net increase in pretax income	$	3,528		$	3,169		$	3,877		$	5,211		$	6,492

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 12

Nonperforming Lending-Related Assets
(Unaudited)

(Amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011

Nonaccrual loans	$	771,510		$	849,543		$	885,608		$	1,038,803		$	1,243,304
Other real estate owned		125,142			129,676			128,874			170,023			195,005
Nonperforming lending-related assets, excluding
FDIC-supported assets		896,652			979,219			1,014,482			1,208,826			1,438,309

FDIC-supported nonaccrual loans		21,980			22,623			24,267			29,082			30,414
FDIC-supported other real estate owned		19,674			28,916			24,304			33,150			43,985
FDIC-supported nonperforming assets		41,654			51,539			48,571			62,232			74,399
Total nonperforming lending-related assets	$	938,306		$	1,030,758		$	1,063,053		$	1,271,058		$	1,512,708

Ratio of nonperforming lending-related assets to loans 1
and leases and other real estate owned		2.53	%		2.79	%		2.83	%		3.43	%		4.06	%

Accruing loans past due 90 days or more, excluding
FDIC-supported loans	$	29,460		$	38,172		$	19,145		$	15,863		$	19,195
Accruing FDIC-supported loans past due 90 days or more		70,453			76,945			74,611			85,714			89,554
Ratio of accruing loans past due 90 days or more to
loans 1 and leases		0.27	%		0.31	%		0.25	%		0.28	%		0.29	%

Nonaccrual loans and accruing loans past due 90 days or more	$	893,403		$	987,283		$	1,003,631		$	1,169,462		$	1,382,467
Ratio of nonaccrual loans and accruing loans past due
90 days or more to loans 1 and leases		2.41	%		2.68	%		2.69	%		3.17	%		3.74	%

Accruing loans past due 30 - 89 days, excluding
FDIC-supported loans	$	142,501		$	171,224		$	183,976		$	174,250		$	170,782
Accruing FDIC-supported loans past due 30 - 89 days		15,519			13,899			24,691			13,816			21,520

Restructured loans included in nonaccrual loans		227,568			276,669			295,825			308,159			324,077
Restructured loans on accrual		393,360			401,554			448,109			430,253			393,602

Classified loans, excluding FDIC-supported loans		1,880,932			2,076,220			2,056,472			2,361,574			2,675,741

1 Includes loans held for sale.

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 13

Allowance for Credit Losses
(Unaudited)

	Three Months Ended
(Amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Allowance for Loan Losses
Balance at beginning of period	$	1,010,059		$	1,049,958		$	1,148,903		$	1,237,733		$	1,349,800
Add:
Provision for losses		10,853			15,664			(1,476	)		14,553			1,330
Adjustment for FDIC-supported loans		(5,856	)		(1,057	)		(2,655	)		(1,520	)		(162	)
Deduct:
Gross loan and lease charge-offs		(73,685	)		(80,014	)		(120,599	)		(129,146	)		(142,444	)
Recoveries		30,345			25,508			25,785			27,283			29,209
Net loan and lease charge-offs		(43,340	)		(54,506	)		(94,814	)		(101,863	)		(113,235	)
Balance at end of period	$	971,716		$	1,010,059		$	1,049,958		$	1,148,903		$	1,237,733

Ratio of allowance for loan losses to loans and
leases, at period end		2.64	%		2.76	%		2.83	%		3.13	%		3.36	%

Ratio of allowance for loan losses to nonperforming
loans, at period end		122.46	%		115.81	%		115.40	%		107.59	%		97.17	%

Annualized ratio of net loan and lease charge-offs to
average loans		0.47	%		0.59	%		1.03	%		1.11	%		1.23	%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	98,718		$	102,422		$	98,062		$	100,264		$	102,168
Provision charged (credited) to earnings		4,868			(3,704	)		4,360			(2,202	)		(1,904	)
Balance at end of period	$	103,586		$	98,718		$	102,422		$	98,062		$	100,264

Total Allowance for Credit Losses
Allowance for loan losses	$	971,716		$	1,010,059		$	1,049,958		$	1,148,903		$	1,237,733
Reserve for unfunded lending commitments		103,586			98,718			102,422			98,062			100,264
Total allowance for credit losses	$	1,075,302		$	1,108,777		$	1,152,380		$	1,246,965		$	1,337,997

Ratio of total allowance for credit losses
to loans and leases outstanding, at period end		2.92	%		3.03	%		3.10	%		3.40	%		3.63	%

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 14

Nonaccrual Loans By Portfolio Type
(Excluding FDIC-Supported Loans)
(Unaudited)

(In millions)	June 30,		March 31,		December 31,		September 30,			June 30,
		2012		2012		2011		2011		2011

Loans held for sale	$	-	$	-	$	18	$	18	$	17

Commercial:
Commercial and industrial		133		149		127		176		186
Leasing		1		1		2		1		1
Owner occupied		240		245		239		268		314
Municipal		-		-		-		-		6
Total commercial		374		395		368		445		507

Commercial real estate:
Construction and land development		115		148		220		245		344
Term		182		191		156		189		233
Total commercial real estate		297		339		376		434		577

Consumer:
Home equity credit line		14		17		18		15		13
1-4 family residential		76		87		91		108		110
Construction and other consumer real estate		8		8		12		16		16
Bankcard and other revolving plans		1		1		-		-		-
Other		2		3		3		3		3
Total consumer		101		116		124		142		142
Total nonaccrual loans	$	772	$	850	$	886	$	1,039	$	1,243


Net Charge-Offs By Portfolio Type
(Unaudited)
	Three Months Ended
(In millions)	June 30,		March 31,		December 31,		September 30,			June 30,
		2012		2012		2011		2011		2011
Commercial:
Commercial and industrial	$	9	$	17	$	9	$	27	$	18
Leasing		-		-		-		-		-
Owner occupied		10		8		33		27		19
Municipal		-		-		-		-		-
Total commercial		19		25		42		54		37

Commercial real estate:
Construction and land development		(2)		(2)		13		17		37
Term		13		18		24		15		18
Total commercial real estate		11		16		37		32		55

Consumer:
Home equity credit line		6		4		6		4		6
1-4 family residential		5		7		7		5		11
Construction and other consumer real estate		-		1		1		4		2
Bankcard and other revolving plans		1		2		2		3		2
Other		1		-		-		-		-
Total consumer loans		13		14		16		16		21
Total net charge-offs	$	43	$	55	$	95	$	102	$	113

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 15
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)

	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2012						March 31, 2012						December 31, 2011
(In thousands)	Average			Average			Average			Average			Average			Average
	balance			rate			balance			rate			balance			rate
ASSETS
Money market investments	$	7,786,191			0.26	%	$	7,282,245			0.26	%	$	6,574,588			0.26	%
Securities:
Held-to-maturity		797,843			5.72	%		799,741			5.53	%		794,030			5.60	%
Available-for-sale		3,084,771			3.34	%		3,093,827			3.08	%		3,496,842			2.47	%
Trading account		18,877			3.15	%		41,189			3.30	%		65,901			3.30	%
Total securities		3,901,491			3.82	%		3,934,757			3.58	%		4,356,773			3.06	%

Loans held for sale		157,308			3.99	%		174,902			3.45	%		161,134			3.45	%

Loans 1:
Loans and leases		36,067,463			5.07	%		36,078,917			5.17	%		36,122,003			5.23	%
FDIC-supported loans		661,597			14.84	%		712,877			13.29	%		775,365			14.51	%
Total loans		36,729,060			5.25	%		36,791,794			5.33	%		36,897,368			5.43	%
Total interest-earning assets		48,574,050			4.33	%		48,183,698			4.41	%		47,989,863			4.50	%
Cash and due from banks		1,025,681						1,122,979						1,071,368
Allowance for loan losses		(1,004,879	)					(1,046,709	)					(1,128,602	)
Goodwill		1,015,129						1,015,129						1,015,125
Core deposit and other intangibles		61,511						65,837						70,345
Other assets		3,218,519						3,239,161						3,332,441
Total assets	$	52,890,011					$	52,580,095					$	52,350,540

LIABILITIES
Interest-bearing deposits:
Savings and NOW	$	7,435,000			0.17	%	$	7,200,170			0.20	%	$	6,858,799			0.23	%
Money market		14,522,941			0.28	%		14,701,771			0.32	%		14,769,654			0.36	%
Time		3,264,853			0.75	%		3,369,323			0.79	%		3,468,855			0.84	%
Foreign		1,490,695			0.35	%		1,408,409			0.40	%		1,634,203			0.43	%
Total interest-bearing deposits		26,713,489			0.31	%		26,679,673			0.35	%		26,731,511			0.40	%
Borrowed funds:
Securities sold, not yet purchased		6,128			1.90	%		22,758			3.38	%		30,704			4.11	%
Federal funds purchased and security
repurchase agreements		474,026			0.14	%		528,662			0.12	%		632,030			0.11	%
Other short-term borrowings		13,290			2.00	%		48,394			3.61	%		102,930			2.82	%
Long-term debt		2,329,608			11.25	%		1,991,776			11.55	%		1,921,251			10.26	%
Total borrowed funds		2,823,052			9.32	%		2,591,590			9.00	%		2,686,915			7.52	%
Total interest-bearing liabilities		29,536,541			1.17	%		29,271,263			1.12	%		29,418,426			1.05	%
Noninterest-bearing deposits		16,228,973						15,691,499						15,469,278
Other liabilities		582,743						619,231						515,595
Total liabilities		46,348,257						45,581,993						45,403,299
Shareholders’ equity:
Preferred equity		1,830,845						2,355,549						2,365,430
Common equity		4,713,318						4,644,722						4,583,748
Controlling interest shareholders’ equity		6,544,163						7,000,271						6,949,178
Noncontrolling interests		(2,409	)					(2,169	)					(1,937	)
Total shareholders’ equity		6,541,754						6,998,102						6,947,241
Total liabilities and shareholders’ equity	$	52,890,011					$	52,580,095					$	52,350,540

Spread on average interest-bearing funds					3.16	%					3.29	%					3.45	%

Net yield on interest-earning assets					3.62	%					3.73	%					3.86	%

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

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ZIONS BANCORPORATION AND SUBSIDIARIES
Press Release – Page 16

GAAP to Non-GAAP Reconciliation
(Unaudited)
			Three Months Ended
			June 30, 2012							March 31, 2012
(Amounts in thousands)						Diluted							Diluted
			Amount			EPS				Amount			EPS
	1.	Net Earnings Excluding the Effects of the Discount Amortization on
		Convertible Subordinated Debt and Additional Accretion on Acquired Loans

		Net earnings applicable to common shareholders (GAAP)	$	55,215		$	0.30			$	25,489		$	0.14
		Addback for the after-tax impact of:
		Discount amortization on convertible subordinated debt		6,584			0.04				6,905			0.04
		Accelerated discount amortization on convertible subordinated debt		13,175			0.07				9,920			0.05
		Additional accretion of interest income on acquired loans, net of expense		(2,035	)		(0.01	)			(1,830	)		(0.01	)
		Net earnings excluding the effects of the discount amortization on convertible
		subordinated debt and additional accretion on acquired loans (non-GAAP)	$	72,939		$	0.40			$	40,484		$	0.22

			Three Months Ended
			June 30, 2012							March 31, 2012
	2.	Core Net Interest Income (NII)/Net Interest Margin (NIM)	NII			NIM				NII			NIM

		Net interest income/net interest margin as reported (GAAP)	$	431,987			3.62	%	1	$	442,299			3.73	% 1
		Addback for the pretax impact of:
		Discount amortization on convertible subordinated debt		10,663			0.09	%			11,182			0.09	%
		Accelerated discount amortization on convertible subordinated debt		16,202			0.13	%			12,204			0.10	%
		Additional accretion of interest income on acquired loans		(14,761	)		(0.12	)%			(13,171	)		(0.11	)%
		Core net interest income/net interest margin (non-GAAP)	$	444,091			3.72	%		$	452,514			3.81	%

		1 Calculation of net interest margin is based on taxable-equivalent net interest income.

This Press Release presents the following non-GAAP financial measures: 1. Net earnings excluding the effects of the discount amortization on convertible subordinated debt and additional accretion on acquired loans, and 2. Core net interest income/net interest margin. These non-GAAP financial measures exclude the effects of the following adjustments: (i) periodic discount amortization on convertible subordinated debt; (ii) accelerated discount amortization on convertible subordinated debt which has been converted; and (iii) additional accretion of interest income on acquired loans based on increased projected cash flows (net of related expense in 1.).

The identified adjustments to reconcile from the applicable GAAP financial measures to the non-GAAP financial measures are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results.

The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period and company-to-company comparisons, which will assist investors and analysts in analyzing the operating results of the Company and in predicting future performance. These non-GAAP financial measures are used by management and the Board of Directors to assess the performance of the Company’s business for evaluating bank reporting segment performance, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting these non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management and the Board of Directors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analyses of results reported under GAAP.

- # # # -

For: ZIONS BANCORPORATION

Contact: James Abbott

One South Main, 15th Floor

Tel: (801) 524-4787

Salt Lake City, Utah

July 23, 2012

Harris H. Simmons

Chairman/Chief Executive Officer