Zions Bancorporation Reports Earnings of $0.30 Per Diluted Common Share for Second Quarter 2012

SALT LAKE CITY, July 23, 2012 /PRNewswire/ -- 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.

"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.

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.

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.

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.

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.

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.

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.

ZIONS BANCORPORATION AND SUBSIDIARIES

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.











ZIONS BANCORPORATION AND SUBSIDIARIES

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

ZIONS BANCORPORATION AND SUBSIDIARIES

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

ZIONS BANCORPORATION AND SUBSIDIARIES






















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


ZIONS BANCORPORATION AND SUBSIDIARIES












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 1and 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 1and 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












1Includes loans held for sale.











ZIONS BANCORPORATION AND SUBSIDIARIES












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%

ZIONS BANCORPORATION AND SUBSIDIARIES


















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