News Details

Zions Bancorporation Reports Earnings of $0.98 Per Diluted Common Share for First Quarter 2008

April 17, 2008

SALT LAKE CITY, April 17 /PRNewswire-FirstCall/ -- Zions Bancorporation (Nasdaq: ZION) ("Zions" or "the Company") today reported first quarter net earnings applicable to common shareholders of $104.3 million, or $0.98 per diluted common share, compared to $149.7 million or $1.36 per diluted common share for the first quarter of 2007. The return on average common equity was 8.18% compared to 12.25% for the first quarter of 2007.

First Quarter 2008 Key Performance Highlights Compared to Fourth Quarter 2007

    -- Loan growth of $0.8 billion, including $283 million resulting from
       purchases of Lockhart securities related to loan securitizations.
    -- Average core deposit growth of $0.3 billion.
    -- Net interest income of $486.5 million, up $7.6 million or 6.4%
       annualized; net interest margin of 4.23%, down 4 basis points.
    -- Credit quality:
         Provision for loan losses of $92.3 million, up $22.3 million from
          $70.0 million.
         Net loan and lease charge-offs of $50.8 million, up $24.1 million
          from $26.7 million.
         Nonperforming assets of $434.3 million, up $150.4 million from
          $283.9 million.
    -- Impairment and valuation losses on securities of $46.0 million pretax,
       or $0.27 per diluted share.
    -- Net Visa IPO gain and litigation accrual reversal of $18.0 million
       pretax, or $0.10 per diluted share.

"Our subsidiary banks in California, Arizona, and Nevada continued to see their performance impacted by the extremely soft residential housing market in those states," said Harris H. Simmons, chairman and chief executive officer. "While the general economy is slowing in other markets, our banks in Texas, the Intermountain West, and the Pacific Northwest continued to see growth and relatively strong performance. Our continued focus on conserving capital and managing interest rate risk resulted in remarkably stable capital ratios and net interest margin, in spite of a very challenging environment," added Simmons.

Loan Growth

On-balance-sheet net loans and leases were $39.9 billion at March 31, 2008, an increase of approximately $0.8 billion or 8.4% annualized from $39.1 billion at December 31, 2007, and an increase of approximately $4.0 billion or 11.0% from $35.9 billion at March 31, 2007. This increase includes $283 million of loans resulting from the purchase of certain securities from Lockhart Funding LLC, an off-balance sheet commercial paper conduit sponsored by Zions Bank, as discussed subsequently. These securities were backed by loans originated or purchased by Zions Bank and came back on the Company's balance sheet primarily as owner occupied commercial loans. Loan growth during the quarter was concentrated primarily in commercial lending and secondarily in commercial term real estate loans, principally at Zions Bank and Amegy Bank of Texas. Construction and land development loans declined meaningfully in California, Arizona and Nevada during the quarter, offset by growth in Texas.

Deposits

Average core deposits for the first quarter of 2008 increased $0.3 billion or 3.4% annualized to $32.1 billion compared to $31.9 billion for the fourth quarter of 2007 and increased $1.8 billion or 5.8% compared to $30.4 billion for the first quarter of 2007. Core deposit growth was concentrated in Internet money market, savings, and money market accounts. Average total deposits for the first quarter of 2008 increased $0.2 billion to $36.6 billion or 2.3% annualized compared to $36.4 billion for the fourth quarter of 2007, and increased $1.4 billion or 4.0% compared to $35.2 billion for the first quarter of 2007. Average noninterest-bearing demand deposits for the first quarter of 2008 were $9.0 billion compared to $9.3 billion for the fourth quarter of 2007 and $9.4 billion for the first quarter of 2007.

Net Interest Income

Net interest income for the first quarter of 2008 increased $7.6 million or 6.4% annualized to $486.5 million compared to $478.9 million for the fourth quarter of 2007, and increased $29.4 million or 6.4% compared to $457.1 million for the first quarter of 2007. Taxable-equivalent net interest income for the first quarter of 2008 increased $7.4 million or 6.1% annualized to $492.5 million compared to $485.2 million for the fourth quarter of 2007, and increased $28.8 million or 6.2% from $463.7 million for the first quarter of 2007.

The net interest margin was 4.23% for the first quarter of 2008 compared to 4.27% for the fourth quarter of 2007 and 4.51% for the first quarter of 2007. The effect of commercial paper purchased from Lockhart on the net interest margin was a reduction of approximately 11 basis points for the first quarter of 2008 and 6 basis points for the fourth quarter of 2007.

Asset Quality

Nonperforming assets were $434.3 million at March 31, 2008 compared to $283.9 million at December 31, 2007 and $82.5 million at March 31, 2007. This increase is primarily due to weakness in residential development and construction activity in the Southwest that started in the latter half of 2007 and began to show signs of deterioration in Utah/Idaho during the first quarter of 2008. The ratio of nonperforming assets to net loans and leases and other real estate owned was 1.09% at March 31, 2008 compared to 0.73% at December 31, 2007 and 0.23% at March 31, 2007.

Net loan and lease charge-offs for the first quarter of 2008 were $50.8 million or 0.52% annualized of average loans. This compares with $26.7 million or 0.28% annualized of average loans for the fourth quarter of 2007 and $10.1 million or 0.11% annualized of average loans for the first quarter of 2007. The increase in charge-offs largely was driven by declining collateral values on residential acquisition, development and construction loans in the Southwest.

The provision for loan losses was $92.3 million for the first quarter of 2008 compared to $70.0 million for the fourth quarter of 2007 and $9.1 million for the first quarter of 2007. The combined provisions for loan losses and unfunded lending commitments were $95.9 million for the first quarter of 2008, $70.1 million for the fourth quarter of 2007, and $9.4 million for the first quarter of 2007.

The allowance for loan losses as a percentage of net loans and leases was 1.26% at March 31, 2008, 1.18% at December 31, 2007, and 1.03% at March 31, 2007. The allowance was 126.0% of nonperforming loans at March 31, 2008. The total allowance and reserve for credit losses (allowance for loan losses plus the reserve for unfunded lending commitments) was $526.4 million or 1.32% of net loans and leases at March 31, 2008 compared to $480.9 million or 1.23% at December 31, 2007 and $391.2 million or 1.09% at March 31, 2007.

Available-For-Sale Securities and Lockhart Funding

The Company recognized other-than-temporary impairment ("OTTI") during the first quarter of 2008 of approximately $40.8 million pretax, or $0.24 per diluted share, mainly for certain available-for-sale trust preferred REIT CDOs. Of this, $7.8 million resulted from a determination of additional value impairment on seven securities with OTTI in the fourth quarter of 2007, while $33.0 million resulted from three additional securities deemed to have OTTI in the first quarter of 2008. This impairment was based on an ongoing valuation review of the investment securities portfolio. OTTI during the fourth quarter of 2007 for certain REIT CDOs was $108.6 million.

During the first quarter of 2008, Zions Bank purchased certain securities at fair value from Lockhart. The purchases amounted to approximately $280 million at book value and were made pursuant to a liquidity agreement. The resulting pretax loss was approximately $5.2 million, or $0.03 per diluted share. The purchase of approximately $275 million of these securities was due to the inability of Lockhart to issue a sufficient amount of commercial paper and $5 million was related to an investment that was downgraded. The securities purchased included $200 million of small business loan securitizations created by Zions Bank. No gain or loss was recognized on the purchase of these loan securitizations. Upon dissolution of the securitization trusts (including $83 million of related securities owned by the Parent), the Company recorded $283 million of loans on its balance sheet. Securities purchased from Lockhart during the fourth quarter of 2007 amounted to approximately $895 million, of which $55 million related to investment downgrades, and resulted in a pretax loss of approximately $49.6 million. Lockhart has approximately $1.75 billion of securities at March 31, 2008.

The Company has also purchased asset-backed commercial paper from Lockhart which resulted in on-balance sheet holdings of approximately $1,227 million at March 31, 2008, $710 million at December 31, 2007, and $500 million at September 30, 2007. The amount of Lockhart commercial paper included in money market investments on the Company's average balance sheet was approximately $1,202 million for the first quarter of 2008, $763 million for the fourth quarter of 2007, and $232 million for the third quarter of 2007. These purchases were made to provide liquidity to Lockhart due to ongoing contraction and disruptions in the credit markets.

Visa IPO Gain and Accrual Reversal

During the first quarter of 2008, the Company's subsidiary banks recorded an aggregate pretax cash gain of approximately $12.4 million from the partial redemption of their equity interests in Visa Inc. The redemption approximated 39% of the subsidiary banks' equity interests. In addition, the Company reversed approximately $5.6 million during the first quarter of its $8.1 million fourth quarter 2007 accrual for indemnification liabilities related to certain Visa litigation. The combined pretax benefit to first quarter earnings from these events was $18.0 million, or $0.10 per diluted share.

Noninterest Income

Noninterest income for the first quarter of 2008 was $111.0 million compared to $(20.2) million for the fourth quarter of 2007 and $145.4 million for the first quarter of 2007. The amounts for the first quarter of 2008 and the fourth quarter of 2007 were adversely affected by impairment and valuation losses on securities of $46.0 million and $158.2 million, respectively. Excluding these losses, noninterest income was $157.0 million for the first quarter of 2008 and $138.0 million for the fourth quarter of 2007. Noninterest income for the first quarter of 2008 includes the previously discussed $12.4 million Visa IPO gain which is included in equity securities gains. Fair value and nonhedge derivative income (loss) increased $10.8 million for the quarter primarily because of nonhedge derivative income of $3.9 million compared to losses of $7.4 million during the fourth quarter of 2007.

Noninterest Expense

Noninterest expense for the first quarter of 2008 was $350.1 million compared to $353.0 million for the fourth quarter of 2007 and $352.0 million for the first quarter of 2007. Salaries and employee benefits increased from the fourth quarter of 2007 primarily because of reductions to bonus, long-term incentive, and profit sharing accruals during the fourth quarter of 2007 and due to increased payroll taxes during the first quarter of 2008. Other noninterest expense decreased $17.0 million mainly due to the first quarter reversal of much of the fourth quarter 2007 Visa indemnification accrual.

The efficiency ratio was 58.0% for the first quarter of 2008 compared to 75.9% for the fourth quarter of 2007 and 57.8% for the first quarter of 2007. Excluding impairment and valuation losses on securities, and the Visa IPO gain and indemnification accruals, the efficiency ratio was 55.8% for the first quarter of 2008 and 55.3% for the fourth quarter of 2007.

Adoption of New Accounting Standards

Effective January 1, 2008, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 157, Fair Value Measurements, and SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. Both Standards address the application of fair value accounting and reporting. The cumulative effect of adopting SFAS 159 decreased retained earnings at January 1, 2008 by $11.5 million. As previously reported, the Company elected to apply SFAS 159 to one available-for-sale REIT CDO security and three retained interests on selected small business loan securitizations. During the first quarter of 2008, the net change in fair value decreased earnings by approximately $0.6 million, consisting of a $2.3 million fair value decrease for the REIT CDO security and a $1.7 million increase for the retained interests.

Capital Management

The Company's tangible equity ratio was 6.20% at March 31, 2008 compared to 6.17% at December 31, 2007 and 6.59% at March 31, 2007.

Weighted average common and common-equivalent shares outstanding for the first quarter of 2008 were 106,722,000 compared to 106,902,983 for the fourth quarter of 2007 and 110,106,637 for the first quarter of 2007. Common shares outstanding at March 31, 2008 were 107,139,188 compared to 107,116,505 at December 31, 2007 and 109,052,149 at March 31, 2007.

The Company has not repurchased any common shares since August 16, 2007 and does not anticipate a resumption of share repurchases in the near term.

Conference Call

Zions will host a conference call to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 17, 2008). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-901-5213 (international: 617-786-2962) and entering the passcode 89314682, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at http://www.zionsbancorporation.com. A replay of the call will be available from 7:30 p.m. ET on Thursday, April 17, through midnight ET on Thursday, April 24, by dialing 1-888-286-8010 (international: 617-801-6888) and entering the passcode 25643975. 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 http://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 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, including changes in asset-backed commercial paper markets and valuations in structured securities and other assets; 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 2007 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.

    ZIONS BANCORPORATION AND SUBSIDIARIES
    FINANCIAL HIGHLIGHTS
    (Unaudited)

                                                      Three Months Ended
    (In thousands, except per share and ratio data)        March 31,
                                                   2008      2007     % Change
    EARNINGS
    Taxable-equivalent net interest income       $492,537  $463,721     6.21 %
    Taxable-equivalent revenue                    603,537   609,135    (0.92)%
    Net interest income                           486,458   457,083     6.43 %
    Noninterest income                            111,000   145,414   (23.67)%
    Provision for loan losses                      92,282     9,111   912.86 %
    Noninterest expense                           350,103   351,979    (0.53)%
    Income before income taxes and minority
     interest                                     155,073   241,407   (35.76)%
    Income taxes                                   49,896    88,854   (43.84)%
    Minority interest                              (1,572)     (705)  122.98 %
    Net income                                    106,749   153,258   (30.35)%
    Net earnings applicable to common
     shareholders                                 104,296   149,655   (30.31)%

    PER COMMON SHARE
    Net earnings (diluted)                           0.98      1.36   (27.94)%
    Dividends                                        0.43      0.39    10.26 %
    Book value per common share                     47.49     46.04     3.15 %

    SELECTED RATIOS
    Return on average assets                        0.81%     1.31%
    Return on average common equity                 8.18%    12.25%
    Efficiency ratio                               58.01%    57.78%
    Net interest margin                             4.23%     4.51%



    ZIONS BANCORPORATION AND SUBSIDIARIES
    FINANCIAL HIGHLIGHTS (Continued)
    (Unaudited)

                                                      Three Months Ended
    (In thousands, except share and ratio data)            March 31,
                                                2008         2007     % Change
    AVERAGE BALANCES
    Total assets                            $52,913,823  $47,585,120   11.20 %
    Total interest-earning assets            46,853,435   41,695,743   12.37 %
    Securities                                5,341,287    5,797,856   (7.87)%
    Net loans and leases                     39,452,309   35,406,094   11.43 %
    Goodwill                                  2,009,477    1,983,765    1.30 %
    Core deposit and other intangibles          146,363      194,124  (24.60)%
    Total deposits                           36,594,674   35,181,504    4.02 %
    Core deposits (1)                        32,133,347   30,358,375    5.85 %
    Minority interest                            30,676       40,741  (24.70)%
    Shareholders' equity:
      Preferred equity                          240,000      240,000         -
      Common equity                           5,126,621    4,954,400    3.48 %

    Weighted average common and
     common-equivalent shares outstanding   106,722,000  110,106,637   (3.07)%

    AT PERIOD END
    Total assets                            $53,408,293  $48,558,866    9.99 %
    Total interest-earning assets            46,962,949   42,538,513   10.40 %
    Securities                                5,002,207    5,608,927  (10.82)%
    Net loans and leases                     39,905,755   35,944,848   11.02 %
    Sold loans being serviced (2)             1,489,490    2,401,355  (37.97)%
    Allowance for loan losses                   501,283      371,213   35.04 %
    Reserve for unfunded lending commitments     25,148       20,000   25.74 %
    Goodwill                                  2,009,517    2,011,889   (0.12)%
    Core deposit and other intangibles          140,672      192,677  (26.99)%
    Total deposits                           37,516,337   36,325,739    3.28 %
    Core deposits (1)                        32,968,328   31,238,791    5.54 %
    Minority interest                            30,413       38,691  (21.40)%
    Shareholders' equity:
      Preferred equity                          240,000      240,000         -
      Common equity                           5,087,801    5,021,170    1.33 %

    Common shares outstanding               107,139,188  109,052,149   (1.75)%

    Average equity to average assets             10.14%       10.92%
    Common dividend payout                       44.11%       28.57%
    Tangible equity ratio                         6.20%        6.59%
    Nonperforming assets                       $434,293      $82,524  426.26 %
    Accruing loans past due 90 days or more      84,637       56,880   48.80 %
    Nonperforming assets to net loans and
     leases and other real estate owned
     at period end                                1.09%        0.23%

    (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.



    ZIONS BANCORPORATION AND SUBSIDIARIES
    FINANCIAL HIGHLIGHTS (Continued)
    (Unaudited)

    (In thousands, except                  Three Months Ended
     per share and ratio data) March 31, Dec. 31, Sept. 30, June 30, March 31,
                                2008      2007      2007      2007     2007
    EARNINGS
    Taxable-equivalent net
     interest income         $492,537  $485,157  $483,115  $476,060  $463,721
    Taxable-equivalent
     revenue                  603,537   464,923   628,938   617,401   609,135
    Net interest income       486,458   478,885   476,637   469,347   457,083
    Noninterest income        111,000   (20,234)  145,823   141,341   145,414
    Provision for loan
     losses                    92,282    69,982    55,354    17,763     9,111
    Noninterest expense       350,103   352,966   352,031   347,612   351,979
    Income before income
     taxes and minority
     interest                 155,073    35,703   215,075   245,313   241,407
    Income taxes (benefit)     49,896   (11,035)   71,853    86,065    88,854
    Minority interest          (1,572)    1,197     7,490        34      (705)
    Net income                106,749    45,541   135,732   159,214   153,258
    Net earnings applicable
     to common shareholders   104,296    42,198   131,962   155,607   149,655

    PER COMMON SHARE
    Net earnings (diluted)       0.98      0.39      1.22      1.43      1.36
    Dividends                    0.43      0.43      0.43      0.43      0.39
    Book value per common
     share                      47.49     47.17     46.92     46.14     46.04

    SELECTED RATIOS
    Return on average assets    0.81%     0.35%     1.10%     1.33%     1.31%
    Return on average common
     equity                     8.18%     3.29%    10.50%    12.50%    12.25%
    Efficiency ratio           58.01%    75.92%    55.97%    56.30%    57.78%
    Net interest margin         4.23%     4.27%     4.44%     4.53%     4.51%



    ZIONS BANCORPORATION AND SUBSIDIARIES
    FINANCIAL HIGHLIGHTS (Continued)
    (Unaudited)

    (In thousands, except share and             Three Months Ended
     ratio data)                         March 31,  December 31, September 30,
                                           2008        2007          2007
    AVERAGE BALANCES
    Total assets                       $52,913,823  $50,941,152  $48,903,319
    Total interest-earning assets       46,853,435   45,106,413   43,200,858
    Securities                           5,341,287    5,188,980    5,221,722
    Net loans and leases                39,452,309   38,450,974   37,194,850
    Goodwill                             2,009,477    2,009,022    2,015,532
    Core deposit and other intangibles     146,363      162,679      177,864
    Total deposits                      36,594,674   36,381,125   35,756,600
    Core deposits (1)                   32,133,347   31,863,057   31,067,905
    Minority interest                       30,676       32,343       37,527
    Shareholders' equity:
      Preferred equity                     240,000      240,000      240,000
      Common equity                      5,126,621    5,094,138    4,987,275

    Weighted average common and
     common-equivalent shares
     outstanding                       106,722,000  106,902,983  107,879,963

    AT PERIOD END
    Total assets                       $53,408,293  $52,947,414  $50,044,686
    Total interest-earning assets       46,962,949   46,448,887   44,104,956
    Securities                           5,002,207    5,860,900    5,261,057
    Net loans and leases                39,905,755   39,087,779   37,822,259
    Sold loans being serviced (2)        1,489,490    1,885,132    2,022,142
    Allowance for loan losses              501,283      459,376      418,165
    Reserve for unfunded lending
     commitments                            25,148       21,530       21,394
    Goodwill                             2,009,517    2,009,513    2,021,519
    Core deposit and other intangibles     140,672      149,493      172,140
    Total deposits                      37,516,337   36,922,753   35,774,713
    Core deposits (1)                   32,968,328   32,531,165   31,239,069
    Minority interest                       30,413       30,939       37,411
    Shareholders' equity:
      Preferred equity                     240,000      240,000      240,000
      Common equity                      5,087,801    5,052,800    5,016,980

    Common shares outstanding          107,139,188  107,116,505  106,934,360

    Average equity to average assets        10.14%       10.47%       10.69%
    Common dividend payout                  44.11%      108.88%       34.96%
    Tangible equity ratio                    6.20%        6.17%        6.40%
    Nonperforming assets                  $434,293     $283,854     $196,575
    Accruing loans past due
     90 days or more                        84,637       77,419       64,516
    Nonperforming assets to net loans and
     leases and other real estate owned at
     period end                              1.09%        0.73%        0.52%


    ZIONS BANCORPORATION AND SUBSIDIARIES
    FINANCIAL HIGHLIGHTS (Continued)
    (Unaudited)

                                                    Three Months Ended
    (In thousands, except share and ratio data)   June 30,         March 31,
                                                   2007              2007
    AVERAGE BALANCES
    Total assets                               $47,921,787       $47,585,120
    Total interest-earning assets               42,151,667        41,695,743
    Securities                                   5,426,896         5,797,856
    Net loans and leases                        36,142,957        35,406,094
    Goodwill                                     2,012,270         1,983,765
    Core deposit and other intangibles             188,843           194,124
    Total deposits                              35,964,203        35,181,504
    Core deposits (1)                           30,873,001        30,358,375
    Minority interest                               35,009            40,741
    Shareholders' equity:
      Preferred equity                             240,000           240,000
      Common equity                              4,993,383         4,954,400

    Weighted average common and
     common-equivalent shares
     outstanding                               109,123,735       110,106,637

    AT PERIOD END
    Total assets                               $48,691,445       $48,558,866
    Total interest-earning assets               42,721,118        42,538,513
    Securities                                   5,289,180         5,608,927
    Net loans and leases                        36,788,205        35,944,848
    Sold loans being serviced (2)                2,201,897         2,401,355
    Allowance for loan losses                      380,295           371,213
    Reserve for unfunded lending commitments        21,222            20,000
    Goodwill                                     2,013,314         2,011,889
    Core deposit and other intangibles             180,867           192,677
    Total deposits                              36,185,572        36,325,739
    Core deposits (1)                           31,303,578        31,238,791
    Minority interest                               32,094            38,691
    Shareholders' equity:
      Preferred equity                             240,000           240,000
      Common equity                              4,984,702         5,021,170

    Common shares outstanding                  108,034,079       109,052,149

    Average equity to average assets                10.92%            10.92%
    Common dividend payout                          29.88%            28.57%
    Tangible equity ratio                            6.52%             6.59%
    Nonperforming assets                           $95,398           $82,524
    Accruing loans past due 90 days or more         47,782            56,880
    Nonperforming assets to net loans and leases
     and other real estate owned at period end       0.26%             0.23%

    (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.



    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
                                          March 31, December 31, September 30,
    (In thousands, except share amounts)    2008        2007         2007
                                         (Unaudited)              (Unaudited)
    ASSETS
    Cash and due from banks              $1,660,539   $1,855,155   $1,481,238
    Money market investments:
      Interest-bearing deposits and
       commercial paper                   1,243,860      726,446      513,395
      Federal funds sold                    121,892      102,225       23,567
      Security resell agreements            689,235      671,537      484,678
    Investment securities:
      Held-to-maturity, at cost
       (approximate fair value
       $704,156, $702,148, $686,026,
       $685,521 and $663,474)               701,658      704,441      695,842
      Available-for-sale, at fair value   4,259,742    5,134,610    4,549,721
      Trading account, at fair value
       (includes $0, $741, $22, $1,745
       and $1,095 transferred as collateral
       under repurchase agreements)          40,807       21,849       15,494
                                          5,002,207    5,860,900    5,261,057
    Loans:
      Loans held for sale                   208,529      207,943      200,653
      Loans and leases                   39,855,365   39,044,163   37,778,228
                                         40,063,894   39,252,106   37,978,881
      Less:
        Unearned income and fees, net of
         related costs                      158,139      164,327      156,622
        Allowance for loan losses           501,283      459,376      418,165
          Loans and leases, net of
           allowance                     39,404,472   38,628,403   37,404,094

    Other noninterest-bearing investments 1,114,902    1,034,412    1,043,475
    Premises and equipment, net             657,183      655,712      658,294
    Goodwill                              2,009,517    2,009,513    2,021,519
    Core deposit and other intangibles      140,672      149,493      172,140
    Other real estate owned                  36,476       15,201       11,973
    Other assets (includes $38,788
     measured at fair value at
     March 31, 2008)                      1,327,338    1,238,417      969,256
                                        $53,408,293  $52,947,414  $50,044,686

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits:
      Noninterest-bearing demand         $9,464,122   $9,618,300   $9,322,668
      Interest-bearing:
        Savings and NOW                   4,661,963    4,507,837    4,365,600
        Money market                     10,716,328   10,304,225   10,446,015
        Internet money market             2,270,059    2,163,014    1,707,544
        Time under $100,000               2,564,434    2,562,363    2,599,595
        Time $100,000 and over            4,548,009    4,391,588    4,535,644
        Foreign                           3,291,422    3,375,426    2,797,647
                                         37,516,337   36,922,753   35,774,713

    Securities sold, not yet purchased      184,522      224,269       21,036
    Federal funds purchased               1,817,587    2,463,460    2,391,805
    Security repurchase agreements        1,144,178    1,298,112    1,070,702
    Other liabilities                       620,528      644,375      560,853
    Commercial paper                        164,657      297,850      411,007
    Federal Home Loan Bank advances and
     other borrowings:
      One year or less                    3,890,087    3,181,990    2,037,644
      Over one year                         127,006      127,612      128,218
    Long-term debt                        2,585,177    2,463,254    2,354,317
        Total liabilities                48,050,079   47,623,675   44,750,295

    Minority interest                        30,413       30,939       37,411

    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
        Common stock, without par value;
         authorized 350,000,000
         shares; issued and outstanding
         107,139,188, 107,116,505,
         106,934,360, 108,034,079 and
         109,052,149 shares               2,219,905    2,212,237    2,200,228
      Retained earnings                   2,957,511    2,910,692    2,914,439
      Accumulated other comprehensive
       income (loss)                        (76,429)     (58,835)     (86,914)
      Deferred compensation                 (13,186)     (11,294)     (10,773)
        Total shareholders' equity        5,327,801    5,292,800    5,256,980
                                        $53,408,293  $52,947,414  $50,044,686


    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
                                                   June 30,          March 31,
    (In thousands, except share amounts)             2007              2007
                                                 (Unaudited)       (Unaudited)
    ASSETS
    Cash and due from banks                      $1,640,946        $1,574,519
    Money market investments:
      Interest-bearing deposits and
       commercial paper                              39,881            17,325
      Federal funds sold                            120,959           527,691
      Security resell agreements                    482,893           439,722
    Investment securities:
      Held-to-maturity, at cost (approximate
       fair value $704,156, $702,148, $686,026,
       $685,521 and $663,474)                       702,189           667,269
      Available-for-sale, at fair value           4,564,183         4,909,220
      Trading account, at fair value
       (includes $0, $741, $22, $1,745 and
       $1,095 transferred as collateral
       under repurchase agreements)                  22,808            32,438
                                                  5,289,180         5,608,927
    Loans:
      Loans held for sale                           226,041           266,880
      Loans and leases                           36,715,752        35,832,061
                                                 36,941,793        36,098,941
      Less:
        Unearned income and fees, net of
         related costs                              153,588           154,093
        Allowance for loan losses                   380,295           371,213
          Loans and leases, net of allowance     36,407,910        35,573,635

    Other noninterest-bearing investments           972,830           988,015
    Premises and equipment, net                     648,731           645,391
    Goodwill                                      2,013,314         2,011,889
    Core deposit and other intangibles              180,867           192,677
    Other real estate owned                          10,646             9,682
    Other assets (includes $38,788 measured at
     fair value at March 31, 2008)                  883,288           969,393
                                                $48,691,445       $48,558,866

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits:
      Noninterest-bearing demand                 $9,857,638        $9,761,255
      Interest-bearing:
        Savings and NOW                           4,368,184         4,578,007
        Money market                             10,344,110        10,425,084
        Internet money market                     1,544,031         1,464,535
        Time under $100,000                       2,535,881         2,485,720
        Time $100,000 and over                    4,881,994         5,086,948
        Foreign                                   2,653,734         2,524,190
                                                 36,185,572        36,325,739

    Securities sold, not yet purchased               28,456           190,878
    Federal funds purchased                       2,221,887         2,132,682
    Security repurchase agreements                1,061,598           924,922
    Other liabilities                               602,173           662,589
    Commercial paper                                228,607           186,978
    Federal Home Loan Bank advances and
     other borrowings:
      One year or less                              664,509           323,598
      Over one year                                 128,832           129,446
    Long-term debt                                2,313,015         2,382,173
        Total liabilities                        43,434,649        43,259,005

    Minority interest                                32,094            38,691

    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
        Common stock, without par value;
         authorized 350,000,000
         shares; issued and outstanding
         107,139,188, 107,116,505,
         106,934,360, 108,034,079 and
         109,052,149 shares                       2,279,722         2,381,509
      Retained earnings                           2,828,613         2,719,502
      Accumulated other comprehensive
       income (loss)                               (112,840)          (69,257)
      Deferred compensation                         (10,793)          (10,584)
        Total shareholders' equity                5,224,702         5,261,170
                                                $48,691,445       $48,558,866



    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

    (In thousands, except per share               Three Months Ended
     amounts)                             March 31, December 31, September 30,
                                             2008        2007       2007
    Interest income:
      Interest and fees on loans           $688,439    $727,185    $724,598
      Interest on loans held for sale         3,017       2,975       3,695
      Lease financing                         5,818       5,782       5,461
      Interest on money market investments   19,028      18,760      10,841
      Interest on securities:
        Held-to-maturity - taxable            2,455       2,387       2,343
        Held-to-maturity - nontaxable         6,429       6,430       6,402
        Available-for-sale - taxable         62,356      61,459      61,248
        Available-for-sale - nontaxable       1,892       2,070       2,274
        Trading account                         681         471         880
          Total interest income             790,115     827,519     817,742

    Interest expense:
      Interest on savings and money
       market deposits                      103,987     125,382     123,586
      Interest on time and foreign deposits 106,222     119,242     119,781
      Interest on short-term borrowings      63,134      67,601      59,034
      Interest on long-term borrowings       30,314      36,409      38,704
          Total interest expense            303,657     348,634     341,105

          Net interest income               486,458     478,885     476,637
    Provision for loan losses                92,282      69,982      55,354
          Net interest income after
           provision for loan losses        394,176     408,903     421,283

    Noninterest income:
      Service charges and fees on deposit
       accounts                              49,585      48,130      46,919
      Other service charges, commissions
       and fees                              41,981      44,405      44,471
      Trust and wealth management income      9,693      10,151       9,040
      Capital markets and foreign exchange   10,397      10,632      11,325
      Dividends and other investment income  12,910      13,830      14,720
      Loan sales and servicing income         7,810       8,640      11,607
      Income from securities conduit          2,581       2,472       3,221
      Fair value and nonhedge derivative
       income (loss)                          3,787      (7,034)     (9,391)
      Equity securities gains, net           10,068       1,349      11,072
      Fixed income securities gains
       (losses), net                          1,775        (753)         58
      Impairment losses on available-for-sale
       securities and valuation losses on
       securities purchased from
       Lockhart Funding                     (45,989)   (158,208)          -
      Other                                   6,402       6,152       2,781
          Total noninterest income          111,000     (20,234)    145,823

    Noninterest expense:
      Salaries and employee benefits        209,354     191,141     204,488
      Occupancy, net                         26,799      27,312      27,203
      Furniture and equipment                23,738      24,917      23,996
      Legal and professional services         7,880      12,132      10,918
      Postage and supplies                    9,789       9,416      10,024
      Advertising                             6,351       6,322       6,624
      Merger related expense                    307         687         682
      Amortization of core deposit and other
       intangibles                            8,820      10,459      11,495
      Provision for unfunded lending
       commitments                            3,618         136         172
      Other                                  53,447      70,444      56,429
          Total noninterest expense         350,103     352,966     352,031

          Income before income taxes and
           minority interest                155,073      35,703     215,075
    Income taxes (benefit)                   49,896     (11,035)     71,853
    Minority interest                        (1,572)      1,197       7,490
          Net income                        106,749      45,541     135,732
    Preferred stock dividend                  2,453       3,343       3,770
          Net earnings applicable to
           common shareholders             $104,296     $42,198    $131,962

    Weighted average common shares
     outstanding during the period:
      Basic shares                          106,514     106,454     106,814
      Diluted shares                        106,722     106,903     107,880

    Net earnings per common share:
      Basic                                   $0.98       $0.40       $1.24
      Diluted                                  0.98        0.39        1.22


    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

                                                        Three Months Ended
    (In thousands, except per share amounts)          June 30,       March 31,
                                                        2007           2007
    Interest income:
      Interest and fees on loans                      $697,022       $674,577
      Interest on loans held for sale                    4,322          3,875
      Lease financing                                    5,234          5,206
      Interest on money market investments               7,756          6,342
      Interest on securities:
        Held-to-maturity - taxable                       2,064          2,203
        Held-to-maturity - nontaxable                    6,227          6,091
        Available-for-sale - taxable                    63,825         68,507
        Available-for-sale - nontaxable                  2,398          2,458
        Trading account                                    766          1,192
          Total interest income                        789,614        770,451

    Interest expense:
      Interest on savings and money market deposits    117,295        113,103
      Interest on time and foreign deposits            120,445        112,885
      Interest on short-term borrowings                 43,369         48,692
      Interest on long-term borrowings                  39,158         38,688
          Total interest expense                       320,267        313,368

          Net interest income                          469,347        457,083
    Provision for loan losses                           17,763          9,111
          Net interest income after provision for
           loan losses                                 451,584        447,972

    Noninterest income:
      Service charges and fees on deposit accounts      45,116         43,385
      Other service charges, commissions and fees       42,311         39,377
      Trust and wealth management income                 9,125          8,216
      Capital markets and foreign exchange              11,900          9,731
      Dividends and other investment income             11,271         11,093
      Loan sales and servicing income                    8,998          9,258
      Income from securities conduit                     5,968          6,515
      Fair value and nonhedge derivative income (loss)     924          1,245
      Equity securities gains, net                         100          5,198
      Fixed income securities gains (losses), net           13          3,701
      Impairment losses on available-for-sale
       securities and valuation losses on securities
       purchased from Lockhart Funding                       -              -
      Other                                              5,615          7,695
          Total noninterest income                     141,341        145,414

    Noninterest expense:
      Salaries and employee benefits                   198,668        205,587
      Occupancy, net                                    26,334         26,589
      Furniture and equipment                           24,272         23,267
      Legal and professional services                   11,242          9,537
      Postage and supplies                               9,025          8,047
      Advertising                                        7,517          6,457
      Merger related expense                             1,491          2,406
      Amortization of core deposit and other
       intangibles                                      11,812         11,129
      Provision for unfunded lending commitments         1,222            306
      Other                                             56,029         58,654
          Total noninterest expense                    347,612        351,979

          Income before income taxes and minority
           interest                                    245,313        241,407
    Income taxes (benefit)                              86,065         88,854
    Minority interest                                       34           (705)
          Net income                                   159,214        153,258
    Preferred stock dividend                             3,607          3,603
          Net earnings applicable to common
           shareholders                               $155,607       $149,655

    Weighted average common shares outstanding
     during the period:
      Basic shares                                     107,803        108,414
      Diluted shares                                   109,124        110,107

    Net earnings per common share:
      Basic                                              $1.44          $1.38
      Diluted                                             1.43           1.36



    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
     AND COMPREHENSIVE INCOME
    (Unaudited)

                                             Preferred    Common    Retained
    (In thousands, except per share amounts)   stock      stock     earnings

    Balance, December 31, 2007               $240,000  $2,212,237  $2,910,692
    Cumulative effect of change in
     accounting principle, adoption of
     SFAS 159                                                         (11,471)
    Comprehensive income:
      Net income for the period                                       106,749
      Other comprehensive loss, net of tax:
        Net realized and unrealized holding
         losses on investments and retained
         interests
        Foreign currency translation
        Reclassification for net realized
         losses on investments recorded in
         operations
        Net unrealized gains on derivative
         instruments
        Other comprehensive loss
      Total comprehensive income
    Stock redeemed and retired                               (237)
    Net stock options exercised                             1,203
    Share-based compensation                                6,702
    Dividends declared on preferred stock                              (2,453)
    Cash dividends on common stock,
     $.43 per share                                                   (46,006)
    Change in deferred compensation
    Balance, March 31, 2008                  $240,000  $2,219,905  $2,957,511


    Balance, December 31, 2006               $240,000  $2,230,303  $2,602,189
    Cumulative effect of change in
     accounting principle,
     adoption of FIN 48                                                10,408
    Comprehensive income:
      Net income for the period                                       153,258
      Other comprehensive income, net of tax:
        Net realized and unrealized holding
         losses on investments and retained
         interests
        Reclassification for net realized
         gains on investments recorded in
         operations
        Net unrealized gains on derivative
         instruments
        Other comprehensive income
      Total comprehensive income
    Stock redeemed and retired                           (103,242)
    Net stock options exercised                            42,139
    Common stock issued in acquisition                    206,075
    Share-based compensation                                6,234
    Dividends declared on preferred stock                              (3,603)
    Cash dividends on common stock,
     $.39 per share                                                   (42,750)
    Change in deferred compensation
    Balance, March 31, 2007                  $240,000  $2,381,509  $2,719,502


    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
     AND COMPREHENSIVE INCOME
    (Unaudited)
                                        Accumulated
                                           other                     Total
    (In thousands, except per share    comprehensive   Deferred  shareholders'
     amounts)                          income (loss) compensation    equity


    Balance, December 31, 2007             $(58,835)    $(11,294)  $5,292,800
    Cumulative effect of change in
     accounting principle,
     adoption of SFAS 159                    11,471                         -
    Comprehensive income:
      Net income for the period                                       106,749
      Other comprehensive loss,
       net of tax:
        Net realized and unrealized holding
         losses on investments and retained
         interests                         (130,066)
        Foreign currency translation             (1)
        Reclassification for net realized
         losses on investments recorded
         in operations                       27,301
        Net unrealized gains on derivative
         instruments                         73,701
        Other comprehensive loss            (29,065)                  (29,065)
      Total comprehensive income                                       77,684
    Stock redeemed and retired                                           (237)
    Net stock options exercised                                         1,203
    Share-based compensation                                            6,702
    Dividends declared on preferred stock                              (2,453)
    Cash dividends on common stock,
     $.43 per share                                                   (46,006)
    Change in deferred compensation                       (1,892)      (1,892)
    Balance, March 31, 2008                $(76,429)    $(13,186)  $5,327,801


    Balance, December 31, 2006             $(75,849)     $(9,620)  $4,987,023
    Cumulative effect of change in
     accounting principle,
     adoption of FIN 48                                                10,408
    Comprehensive income:
      Net income for the period                                       153,258
      Other comprehensive income,
       net of tax:
        Net realized and unrealized
         holding losses on investments
         and retained interests              (1,503)
        Reclassification for net realized
         gains on investments recorded in
         operations                          (3,845)
        Net unrealized gains on derivative
         instruments                         11,940
        Other comprehensive income            6,592                     6,592
      Total comprehensive income                                      159,850
    Stock redeemed and retired                                       (103,242)
    Net stock options exercised                                        42,139
    Common stock issued in acquisition                                206,075
    Share-based compensation                                            6,234
    Dividends declared on preferred stock                              (3,603)
    Cash dividends on common stock,
     $.39 per share                                                   (42,750)
    Change in deferred compensation                         (964)        (964)
    Balance, March 31, 2007                $(69,257)    $(10,584)  $5,261,170



    ZIONS BANCORPORATION AND SUBSIDIARIES
    Nonperforming Assets
    (Unaudited)

    (In thousands)     March 31, December 31, September 30, June 30, March 31,
                          2008      2007          2007        2007     2007

    Nonaccrual loans    $387,717  $258,513      $174,315     $82,314  $69,580
    Restructured loans    10,100    10,140        10,287       2,438      132
    Other real estate
     owned                36,476    15,201        11,973      10,646    9,682
    Other assets               -         -             -           -    3,130
    Total               $434,293  $283,854      $196,575     $95,398  $82,524
    % of net loans
     and leases*
     and other real
     estate owned          1.09%     0.73%         0.52%       0.26%    0.23%

    Accruing loans
     past due 90
     days or more        $84,637   $77,419       $64,516     $47,782  $56,880

    % of net loans
     and leases*           0.21%     0.20%         0.17%       0.13%    0.16%

    * Includes loans held for sale.



    Allowance and Reserve for Credit Losses
    (Unaudited)

                                            Three Months Ended
    (In thousands)     March 31, December 31, September 30, June 30, March 31,
                          2008      2007          2007        2007      2007
    Allowance for Loan
     Losses
    Balance at beginning
     of period          $459,376  $418,165      $380,295    $371,213 $365,150
    Allowance of
     company acquired          -         -           578           -    7,061
    Allowance of
     branches sold             -    (2,034)            -           -        -
    Allowance associated
     with repurchased
     securitized loans       425         -             -           -        -
    Add:
      Provision for
       losses             92,282    69,982        55,354      17,763    9,111
    Deduct:
      Loan and lease
       charge-offs       (53,751)  (30,023)      (20,815)    (13,767) (14,079)
      Recoveries           2,951     3,286         2,753       5,086    3,970
        Net loan
         and lease
         charge-offs     (50,800)  (26,737)      (18,062)     (8,681) (10,109)
    Balance at end of
     period             $501,283  $459,376      $418,165    $380,295 $371,213

    Ratio of allowance
     for loan losses to
     net loans and leases
     outstanding at
     period end            1.26%     1.18%         1.11%       1.03%    1.03%

    Ratio of allowance
     for loan losses
     to nonperforming
     loans at period
     end                 126.01%   170.99%       226.52%     448.72%  532.50%

    Reserve for Unfunded
     Lending Commitments
    Balance at beginning
     of period           $21,530   $21,394       $21,222     $20,000  $19,368
    Reserve of company
     acquired                  -         -             -           -      326
    Provision charged
     against earnings      3,618       136           172       1,222      306
    Balance at end of
     period              $25,148   $21,530       $21,394     $21,222  $20,000

    Total Allowance and
     Reserve for Credit
     Losses
    Allowance for loan
     losses             $501,283  $459,376      $418,165    $380,295 $371,213
    Reserve for unfunded
     lending commitments  25,148    21,530        21,394      21,222   20,000
    Total allowance and
     reserve for credit
     losses             $526,431  $480,906      $439,559    $401,517 $391,213

    Ratio of total
     allowance and
     reserve for credit
     losses to net
     loans and leases
     outstanding at
     period end            1.32%     1.23%         1.16%       1.09%    1.09%



    ZIONS BANCORPORATION AND SUBSIDIARIES
    Sold Loans Being Serviced
    (Unaudited)

                                          Three Months Ended
    (In thousands)      March 31,   Dec. 31,   Sept. 30,   June 30,  March 31,
                          2008        2007       2007        2007      2007
    Balance at
     beginning of
     period            $1,885,132 $2,022,142 $2,201,897 $2,401,355 $2,586,451
    New loans sold         14,773     25,234      8,162     19,173     10,931
    Loans repurchased    (283,204)         -          -          -          -
    Payments and other
     reductions          (127,211)  (162,244)  (187,917)  (218,631)  (196,027)
    Balance at end
     of period         $1,489,490 $1,885,132 $2,022,142 $2,201,897 $2,401,355



    Loan Balances By Portfolio Type
    (Unaudited)

    (In millions)          March 31,  Dec. 31,  Sept. 30,  June 30,  March 31,
                             2008       2007       2007      2007      2007

    Loans held for sale      $209       $208       $201       $226       $267

    Commercial lending:
      Commercial and
       industrial          10,031      9,811      9,260      8,922      8,420
      Leasing                 494        503        474        450        447
      Owner occupied        7,910      7,545      7,347      7,123      6,867
        Total commercial
         lending           18,435     17,859     17,081     16,495     15,734

    Commercial real estate:
      Construction and
       land development     8,368      8,315      8,322      7,963      7,739
      Term                  5,569      5,335      5,054      5,084      5,215
        Total commercial
         real estate       13,937     13,650     13,376     13,047     12,954

    Consumer:
      Home equity credit
       line and other
       consumer real estate 2,247      2,203      2,107      2,042      1,935
      1-4 family
       residential          4,158      4,206      4,178      4,134      4,176
      Bankcard and other
       revolving plans        316        347        299        306        289
      Other                   434        452        467        456        465
        Total consumer      7,155      7,208      7,051      6,938      6,865

    Foreign loans              26         26         27         12          3

    Other receivables         302        301        243        224        276
        Total loans       $40,064    $39,252    $37,979    $36,942    $36,099



    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
    (Unaudited)
                                                     Three Months Ended
                                                        March 31, 2008
    (In thousands)                              Average    Amount of   Average
                                                balance   interest (1)   rate
    ASSETS
    Money market investments                   $2,059,839    $19,028     3.72%
    Securities:
      Held-to-maturity                            700,302     12,346     7.09%
      Available-for-sale                        4,599,258     65,267     5.71%
      Trading account                              41,727        681     6.56%
        Total securities                        5,341,287     78,294     5.90%

    Loans:
      Loans held for sale                         214,498      3,017     5.66%
      Net loans and leases (2)                 39,237,811    695,855     7.13%
        Total loans and leases                 39,452,309    698,872     7.12%
    Total interest-earning assets              46,853,435    796,194     6.83%
    Cash and due from banks                     1,417,356
    Allowance for loan losses                    (476,614)
    Goodwill                                    2,009,477
    Core deposit and other intangibles            146,363
    Other assets                                2,963,806
        Total assets                          $52,913,823

    LIABILITIES
    Interest-bearing deposits:
      Savings and NOW                          $4,519,149     10,469     0.93%
      Money market                             10,552,299     72,320     2.76%
      Internet money market                     2,218,181     21,198     3.84%
      Time under $100,000                       2,578,166     27,165     4.24%
      Time $100,000 and over                    4,461,327     49,074     4.42%
      Foreign                                   3,290,090     29,983     3.67%
        Total interest-bearing deposits        27,619,212    210,209     3.06%
    Borrowed funds:
      Securities sold, not yet purchased           33,577        333     3.99%
      Federal funds purchased and security
       repurchase agreements                    3,314,956     24,206     2.94%
      Commercial paper                            205,520      2,332     4.56%
      FHLB advances and other borrowings:
        One year or less                        4,082,208     36,263     3.57%
        Over one year                             127,291      1,825     5.77%
      Long-term debt                            2,504,618     28,489     4.57%
        Total borrowed funds                   10,268,170     93,448     3.66%
    Total interest-bearing liabilities         37,887,382    303,657     3.22%
    Noninterest-bearing deposits                8,975,462
    Other liabilities                             653,682
    Total liabilities                          47,516,526
    Minority interest                              30,676
    Shareholders' equity:
      Preferred equity                            240,000
      Common equity                             5,126,621
    Total shareholders' equity                  5,366,621
        Total liabilities and shareholders'
         equity                               $52,913,823

    Spread on average interest-bearing funds                             3.61%
    Taxable-equivalent net interest income and
     net yield on interest-earning assets                   $492,537     4.23%


    ZIONS BANCORPORATION AND SUBSIDIARIES
    CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
    (Unaudited)
                                                      Three Months Ended
                                                       December 31, 2007
    (In thousands)                              Average    Amount of   Average
                                                balance    interest (1)  rate
    ASSETS
    Money market investments                   $1,466,459    $18,760    5.08%
    Securities:
      Held-to-maturity                            699,216     12,279    6.97%
      Available-for-sale                        4,449,346     64,644    5.76%
      Trading account                              40,418        471    4.62%
        Total securities                        5,188,980     77,394    5.92%

    Loans:
      Loans held for sale                         195,597      2,975    6.03%
      Net loans and leases (2)                 38,255,377    734,662    7.62%
        Total loans and leases                 38,450,974    737,637    7.61%
    Total interest-earning assets              45,106,413    833,791    7.33%
    Cash and due from banks                     1,407,714
    Allowance for loan losses                    (424,413)
    Goodwill                                    2,009,022
    Core deposit and other intangibles            162,679
    Other assets                                2,679,737
        Total assets                          $50,941,152

    LIABILITIES
    Interest-bearing deposits:
      Savings and NOW                          $4,415,558     11,219    1.01%
      Money market                             10,440,278     90,141    3.43%
      Internet money market                     2,011,599     24,022    4.74%
      Time under $100,000                       2,582,100     28,783    4.42%
      Time $100,000 and over                    4,518,068     54,210    4.76%
      Foreign                                   3,123,521     36,249    4.60%
        Total interest-bearing deposits        27,091,124    244,624    3.58%
    Borrowed funds:
      Securities sold, not yet purchased           26,643        299    4.45%
      Federal funds purchased and security
       repurchase agreements                    3,528,741     37,528    4.22%
      Commercial paper                            356,835      4,795    5.33%
      FHLB advances and other borrowings:
        One year or less                        2,106,015     24,979    4.71%
        Over one year                             127,898      1,851    5.74%
      Long-term debt                            2,389,808     34,558    5.74%
        Total borrowed funds                    8,535,940    104,010    4.83%
    Total interest-bearing liabilities         35,627,064    348,634    3.88%
    Noninterest-bearing deposits                9,290,001
    Other liabilities                             657,606
    Total liabilities                          45,574,671
    Minority interest                              32,343
    Shareholders' equity:
      Preferred equity                            240,000
      Common equity                             5,094,138
    Total shareholders' equity                  5,334,138
        Total liabilities and shareholders'
         equity                               $50,941,152

    Spread on average interest-bearing funds                            3.45%
    Taxable-equivalent net interest income and
     net yield on interest-earning assets                   $485,157    4.27%

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

SOURCE Zions Bancorporation

Contact: Clark Hinckley of Zions Bancorporation, +1-801-524-4787