view entire press release

***FOR IMMEDIATE RELEASE***

For: ZIONS BANCORPORATION Contact: James AbbottOne South Main, 15th Floor Tel: (801) 844-7637Salt Lake City, Utah October 19, 2015Harris H. SimmonsChairman/Chief Executive Officer

ZIONS BANCORPORATION REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS

SALT LAKE CITY, October 19, 2015 – Zions Bancorporation (NASDAQ: ZION) (“Zions” or “the Company”)

today reported third quarter net earnings applicable to common shareholders of $84.2 million, or $0.41 per diluted

common share, compared to a net loss applicable to common shareholders of $(1.1) million, or $(0.01) per diluted

common share, for the second quarter of 2015. The Company’s second quarter results included a $137 million loss,

or $0.42 per diluted share, from the sale of remaining collateralized debt obligation (“CDO”) securities. Excluding

this loss, net earnings applicable to common shareholders was $83.4 million, or $0.41 per diluted common share,

for the second quarter of 2015.

Third Quarter 2015 Highlights

• Total noninterest expense was $396 million during the third quarter and $1,198 million year-to-date, compared

to $404 million and $802 million reported last quarter. As previously committed, the Company is on track to

achieve 50% of its target gross $120 million expense reduction by the end of 2015 and to hold adjusted

noninterest expense below $1.6 billion in 2015.

• The efficiency ratio improved to 69.5% during the third quarter, compared to 71.4% during the second quarter,

reflecting the Company’s commitment to have this ratio be at or less than 70% for the second half of 2015.

• Overall credit quality remained in line with expectations, with moderate deterioration in energy loans and

continued strength in other loans. When compared to the prior quarter’s level, classified loans increased 2%,

nonperforming assets declined 4%, net charge-offs excluding energy loans were stable, and the allowance for

credit losses remained relatively unchanged.

- more -

• Energy loan net charge-offs were $17 million during the third quarter; there were no energy loan net charge-

offs during the second quarter. The Company increased the allowance for credit losses on its energy portfolio

in part due to the substantial decline in energy prices during the third quarter. This contributed to an increased

provision for loan losses of $18.3 million during the third quarter, compared to $0.6 million during the second

quarter. The overall performance of the energy loan portfolio has been substantially consistent with the

Company’s initial communications in late 2014, which concluded that some deterioration was expected from

declining energy prices; however, disciplined underwriting and strong reserves will keep the impact relatively

modest to net charge-offs and overall profitability.

• Net interest income increased slightly from the prior quarter while the net interest margin declined to 3.11%

from 3.18%, primarily driven by an increased concentration of cash and securities and a decline in the yield of

the loan portfolio attributable primarily to the waning benefit from loans purchased from the FDIC in 2009.

• Loans held for investment increased $89 million during the third quarter. Excluding the effect of attrition in

energy-related loans and the National Real Estate portfolio, loans increased $285 million during the third

quarter, compared to a $259 million increase during the second quarter calculated on the same basis.

“We’re continuing to make solid progress in achieving our goals with respect to improved operating efficiency

while building a very strong balance sheet and investing in systems and processes that will allow us to provide

exceptional service to our customers,” said Harris H. Simmons, chairman and chief executive officer. “We’ve

received regulatory approval to consolidate our seven subsidiary banks under a single national bank charter, which

we expect to complete on December 31 of this year. We will continue to emphasize our locally-oriented leadership

structure and the power of our strong local brands in each market we serve. We are simultaneously streamlining our

risk and credit organizations and enhancing local credit decision-making authority. The consolidation of our bank

charters will facilitate a simpler and more responsive operating environment and the realization of efficiencies more

quickly and in greater measure than is possible under the status quo.”

Mr. Simmons concluded, “While loan growth has been sluggish in the current environment, we are encouraged by

the Company’s credit quality metrics, with only modest deterioration in the level of classified loans and net charge-

offs that are in line to better than peer average levels. The Company’s funding profile, loss reserves and capital

levels also remain very strong relative to peers.”

Loans

Net loans and leases held for investment increased $89 million, or 0.2%, to $40.1 billion at September 30, 2015

from $40.0 billion at June 30, 2015. Excluding energy-related and National Real Estate loans, net loans and leases

increased $285 million during the quarter, compared to $259 million during the prior quarter calculated on the same

ZIONS BANCORPORATIONPress Release – October 19, 2015

- more -

basis. The adjusted growth rate increased somewhat due to slower runoff rates in the third quarter compared to the

prior quarter.

Average loans and leases held for investment of $40.0 billion during the third quarter of 2015 decreased slightly

from $40.1 billion during the second quarter. Unfunded lending commitments were $18.0 billion at September 30,

2015, compared to $17.6 billion at June 30, 2015.

Energy-Related Exposure

The following table presents the distribution of energy-related loans by customer market segment:

ENERGY-RELATED EXPOSURE1 % oftotal oiland gasrelated

% oftotal oiland gasrelated

% oftotal oiland gasrelated(In millions)

September 30, 2015

June 30,2015

$change

%change

March 31,2015

Loans and leasesOil and gas-related:

Upstream – exploration and production $ 924 33% $ 954 33% $ (30) (3)% $1,078 34%Midstream – marketing and transportation 626 22% 589 20% 37 6 % 654 21%Downstream – refining 124 5% 131 5% (7) (5)% 140 4%Other non-services 55 2% 75 3% (20) (27)% 57 2%Oilfield services 825 29% 879 30% (54) (6)% 959 30%Energy service manufacturing 251 9% 255 9% (4) (2)% 269 9%

Total oil and gas related 2,805 100% 2,883 100% (78) (3)% 3,157 100%Alternative energy 214 222 (8) (4)% 232

Total loans and leases 3,019 3,105 (86) (3)% 3,389Unfunded lending commitments 2,364 2,403 (39) (2)% 2,451

Total credit exposure $5,383 $ 5,508 $ (125) (2)% $5,840

Private equity investments $ 17 $ 18 $ (1) (6)% $ 20

Credit quality measures of oil and gasClassified loan ratio 15.7% 11.3% 9.3%Nonperforming loan ratio 3.0% 2.3% 2.1%Net charge-off ratio, annualized 2.4% —% 0.3%

1 Because many borrowers operate in multiple businesses, judgment has been applied in characterizing a borrower as energy-related, including a particular segment of energy-related activity, e.g., upstream or downstream.

The decline of $86 million in energy-related loans from the second quarter was consistent with expectations and

further attrition in the next several quarters is likely. Energy loan net charge-offs were $17 million in the third

quarter, compared to none in the second quarter.

Generally consistent with expectations, the majority of loan downgrades in the third quarter reflected deterioration

in the financial condition of oilfield services companies, and to a lesser degree a small number of downgrades in the

upstream portfolio. Further downgrades are likely; however, the Company has established a substantial reserve for

the portfolio.


- more -

Asset Quality

Net charge-offs were $31 million in the third quarter (including energy-related loans), or an annualized 0.31% of

average loans, compared to $11 million, or an annualized 0.11% of average loans, in the second quarter. The

Company provided $18.3 million for loan losses during the third quarter, compared to $0.6 million during the

second quarter, largely due to continued weakness in the energy sector. Other credit quality measures were generally

strong outside of the energy portfolio.

Nonperforming assets declined to $372 million at September 30, 2015 from $386 million at June 30, 2015.

Classified loans increased slightly to $1.32 billion at September 30, 2015 from $1.29 billion at June 30, 2015. The

ratio of nonperforming assets to loans and leases and other real estate owned declined to 0.92% at September 30,

2015, compared to 0.96% at June 30, 2015. The allowance for credit losses declined $11 million to $678 million,

which was 1.69% of loans and leases at September 30, 2015, compared to $689 million, or 1.72% of loans and

leases at June 30, 2015.

Deposits

Total deposits were $48.9 billion at September 30, 2015, essentially unchanged from the balance at June 30, 2015.

Average total deposits increased $794 million to $48.9 billion for the third quarter of 2015, compared to $48.1

billion for the second quarter of 2015. Average noninterest bearing deposits increased $575 million to $21.6 billion

for the third quarter, compared to $21.0 billion for the second quarter, and were 44% of average total deposits.

Debt and Shareholders’ Equity

On September 15, 2015, the Company redeemed at maturity approximately $112 million par amount of 6.0%

subordinated and convertible subordinated notes. The total effective cost of this debt was approximately 17% during

2015; the higher effective cost was due to the amortization of debt discount. The Company expects to redeem at

maturity on November 16, 2015 approximately $124 million par amount of similar 5.5% notes that currently have

an effective cost of approximately 14%.

Tangible book value per common share increased to $27.42 at September 30, 2015, compared to $26.95 at June 30,

2015.

The estimated Basel III common equity tier 1 (“CET1”) capital ratio was 12.17% at September 30, 2015, compared

to 12.00% at June 30, 2015. The fully phased-in ratio was not substantially different.


- more -

As reported separately on October 19, 2015, the Company will deploy up to $180 million of cash through a tender

offer to purchase certain outstanding preferred stock and depositary shares.

Net Interest Income

Net interest income increased slightly to $425 million in the third quarter of 2015 from $424 million in the second

quarter of 2015. The net interest margin decreased to 3.11% in the third quarter of 2015, compared to 3.18% in the

second quarter of 2015. The decrease was due primarily to a greater proportion of cash and securities, which carry a

lower yield than loans, and to reduced interest income on loans purchased from the FDIC in 2009.

Noninterest Income

Noninterest income for the third quarter of 2015 was $131 million; excluding gains and losses on securities and fair

value and nonhedge derivative income, noninterest income was $129 million, compared to $132 million for the

second quarter of 2015.

Noninterest Expense

Noninterest expense for the third quarter of 2015 was $396 million, compared to $404 million for the second quarter

of 2015, and $439 million for the third quarter of 2014. Salaries and employee benefits decreased from the prior

quarter primarily due to a normal seasonal variance attributed to annual incentive stock awards that are granted in

the second quarter, and to a reduced accrual for incentive compensation that is linked to the Company’s stock price.

Severance accruals included in salaries and employee benefits increased to $3.5 million in the third quarter,

compared to $1.7 million in the second quarter.

The Company made meaningful progress with its corporate restructuring and cost initiatives during the quarter. The

Company expects to achieve 50% of its target gross $120 million expense reduction by the end of 2015, to hold

adjusted noninterest expense below $1.6 billion in 2015, and to report an efficiency ratio at or less than 70% for the

second half of 2015. Details of the efficiency ratio calculation can be found later in this press release.

Income Taxes

The Company’s effective tax rate for the third quarter of 2015 was 28.8%, which is lower than the effective tax rate

for the prior year third quarter of 35.6%. The decrease was primarily due to certain tax credits generated during the

third quarter of 2015.


- more -

Supplemental Presentation and Conference Call

Zions has posted a supplemental presentation to its website, which will be used to discuss these third quarter results

at 5:30 p.m. ET this afternoon (October 19, 2015). Media representatives, analysts, investors, and the public are

invited to join this discussion by calling 253-237-1247 (domestic and international) and entering the passcode

56565783, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website

at zionsbancorporation.com. 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 in 11 Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New

Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Company is a national leader in Small Business

Administration lending and received 24 “Excellence” awards by Greenwich Associates for the 2014 survey. 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 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. Statements based on historical data are not intended and should not be

understood to indicate the Company’s expectations regarding future events. 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

could cause actual results to differ materially from those expressed in the forward-looking statements include the

actual amount and duration of declines in the price of oil and gas as well as other factors discussed in the

Company’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.


- more -

FINANCIAL HIGHLIGHTS(Unaudited)

Three Months Ended(In thousands, except share, per share, and ratio data) September 30,

2015June 30,

2015March 31,

2015December 31,

2014September 30,

2014BALANCE SHEETLoans and leases, net of allowance $ 39,516,683 $ 39,414,609 $ 39,560,101 $ 39,458,995 $ 39,129,295Total assets 58,410,927 58,365,459 57,555,931 57,208,874 55,458,870Deposits 48,920,147 48,937,124 48,123,360 47,848,075 46,266,562Total shareholders’ equity 7,638,095 7,530,175 7,454,298 7,369,530 7,322,159

STATEMENT OF INCOMENet interest income $ 425,377 $ 423,704 $ 417,346 $ 430,430 $ 416,819Taxable-equivalent net interest income 429,782 428,015 421,581 434,789 420,850Provision for loan losses 18,262 566 (1,494) 11,587 (54,643)Total noninterest income 130,813 421 121,822 129,396 116,071Total noninterest expense 396,149 404,100 397,461 422,666 438,536Net earnings (loss) applicable to commonshareholders 84,238 (1,100) 75,279 66,761 79,127

PER COMMON SHARENet earnings (loss) per diluted common share $ 0.41 $ (0.01) $ 0.37 $ 0.33 $ 0.40Dividends 0.06 0.06 0.04 0.04 0.04Book value per common share 1 32.47 32.03 31.74 31.35 31.14Tangible book value per common share 1 27.42 26.95 26.64 26.23 26.00

SELECTED RATIOSReturn on average assets 0.69% 0.10 % 0.66 % 0.57% 0.69%Return on average common equity 5.02% (0.07)% 4.77 % 4.06% 5.10%Tangible return on average tangible commonequity 6.05% 0.03 % 5.80 % 4.95% 6.19%

Net interest margin 3.11% 3.18 % 3.22 % 3.25% 3.20%Efficiency ratio 69.5% 71.4 % 72.3 % 74.1% 73.0%Effective tax rate 28.8% 28.3 % 35.7 % 34.8% 35.6%Ratio of nonperforming assets to loans andleases and other real estate owned 0.92% 0.96 % 0.99 % 0.81% 0.84%

Annualized ratio of net loan and lease charge-offs to average loans 0.31% 0.11 % (0.17)% 0.17% 0.11%

Ratio of total allowance for credit losses toloans and leases outstanding 1 1.69% 1.72 % 1.75 % 1.71% 1.74%

Capital Ratios 1

Tangible common equity ratio 9.76% 9.58 % 9.58 % 9.48% 9.70%Basel III: 2

Common equity tier 1 capital 12.17% 12.00 % 11.76 %Tier 1 leverage 11.63% 11.65 % 11.75 %Tier 1 risk-based capital 14.43% 14.26 % 13.93 %Total risk-based capital 16.48% 16.32 % 15.97 %

Basel I:Tier 1 common equity 11.92% 11.86%Tier 1 leverage 11.82% 11.87%Tier 1 risk-based capital 14.47% 14.43%Total risk-based capital 16.27% 16.28%

Weighted average common and common-equivalent shares outstanding 204,154,880 202,887,762 202,944,209 203,277,500 197,271,076

Common shares outstanding 1 204,278,594 203,740,914 203,192,991 203,014,903 202,898,491

1 At period end.2 Basel III capital ratios became effective January 1, 2015 and are based on a 2015 phase-in.


- more -

CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)September 30,

2015June 30,

2015March 31,

2015December 31,

2014September 30,

2014(Unaudited) (Unaudited) (Unaudited) (Unaudited)

ASSETSCash and due from banks $ 602,694 $ 758,238 $ 720,858 $ 841,942 $ 585,672Money market investments:

Interest-bearing deposits 6,558,678 7,661,311 6,791,762 7,178,097 7,467,884Federal funds sold and security resell agreements 1,325,501 1,404,246 1,519,352 1,386,291 355,844

Investment securities:Held-to-maturity, at adjusted cost (approximate fairvalue $553,088, $578,327, $602,355, $677,196, and$642,529) 544,168 570,869 590,950 647,252 609,758

Available-for-sale, at fair value 6,000,011 4,652,415 4,450,502 3,844,248 3,563,408Trading account, at fair value 73,521 74,519 71,392 70,601 55,419

6,617,700 5,297,803 5,112,844 4,562,101 4,228,585

Loans held for sale 139,122 152,448 128,946 132,504 109,139

Loans and leases, net of unearned income and fees 40,113,123 40,023,984 40,180,114 40,063,658 39,739,572Less allowance for loan losses 596,440 609,375 620,013 604,663 610,277

Loans, net of allowance 39,516,683 39,414,609 39,560,101 39,458,995 39,129,295

Other noninterest-bearing investments 851,225 863,443 870,125 865,950 855,743Premises and equipment, net 873,800 856,577 844,900 829,809 811,127Goodwill 1,014,129 1,014,129 1,014,129 1,014,129 1,014,129Core deposit and other intangibles 18,546 20,843 23,162 25,520 28,160Other real estate owned 12,799 13,269 17,256 18,916 27,418Other assets 880,050 908,543 952,496 894,620 845,874

$ 58,410,927 $ 58,365,459 $ 57,555,931 $ 57,208,874 $ 55,458,870

LIABILITIES AND SHAREHOLDERS’ EQUITYDeposits:

Noninterest-bearing demand $ 21,572,022 $ 21,557,584 $ 20,854,630 $ 20,529,124 $ 19,771,631Interest-bearing:

Savings and money market 24,690,359 24,744,288 24,540,927 24,583,636 23,742,911Time 2,216,206 2,263,146 2,344,818 2,406,924 2,441,756Foreign 441,560 372,106 382,985 328,391 310,264

48,920,147 48,937,124 48,123,360 47,848,075 46,266,562

Federal funds and other short-term borrowings 272,391 227,124 203,597 244,223 191,798Long-term debt 944,752 1,050,938 1,089,321 1,092,282 1,113,677Reserve for unfunded lending commitments 81,389 79,961 82,287 81,076 79,377Other liabilities 554,153 540,137 603,068 573,688 485,297

Total liabilities 50,772,832 50,835,284 50,101,633 49,839,344 48,136,711

Shareholders’ equity:Preferred stock, without par value, authorized4,400,000 shares 1,004,159 1,004,032 1,004,032 1,004,011 1,004,006

Common stock, without par value; authorized350,000,000 shares; issued and outstanding204,278,594, 203,740,914, 203,192,991,203,014,903, and 202,898,491 shares 4,756,288 4,738,272 4,728,556 4,723,855 4,717,295

Retained earnings 1,894,623 1,823,043 1,836,619 1,769,705 1,711,785Accumulated other comprehensive income (loss) (16,975) (35,172) (114,909) (128,041) (110,927)

Total shareholders’ equity 7,638,095 7,530,175 7,454,298 7,369,530 7,322,159$ 58,410,927 $ 58,365,459 $ 57,555,931 $ 57,208,874 $ 55,458,870


- more -

CONSOLIDATED STATEMENTS OF INCOME(Unaudited)

Three Months Ended(In thousands, except per share amounts) September 30,

2015June 30,

2015March 31,

2015December 31,

2014September 30,

2014Interest income:

Interest and fees on loans $ 419,981 $ 420,642 $ 415,755 $ 431,084 $ 430,416Interest on money market investments 6,018 5,785 5,218 5,913 5,483Interest on securities 30,231 28,809 27,473 24,963 24,377

Total interest income 456,230 455,236 448,446 461,960 460,276Interest expense:

Interest on deposits 12,542 12,321 12,104 12,548 12,313Interest on short- and long-term borrowings 18,311 19,211 18,996 18,982 31,144

Total interest expense 30,853 31,532 31,100 31,530 43,457Net interest income 425,377 423,704 417,346 430,430 416,819

Provision for loan losses 18,262 566 (1,494) 11,587 (54,643)Net interest income after provision for loan losses 407,115 423,138 418,840 418,843 471,462

Noninterest income:Service charges and fees on deposit accounts 43,196 41,616 41,194 42,224 43,468Other service charges, commissions and fees 52,837 51,705 47,486 50,130 51,639Wealth management income 7,496 8,160 7,615 8,078 7,438Loan sales and servicing income 7,728 8,382 7,706 7,134 7,592Capital markets and foreign exchange 6,624 7,275 5,501 6,266 5,400Dividends and other investment income 8,449 9,343 9,372 16,479 11,324Fair value and nonhedge derivative income (loss) (1,555) 1,844 (1,088) (961) 44Equity securities gains, net 3,630 4,839 3,353 9,606 440Fixed income securities losses, net (53) (138,436) (239) (11,620) (13,901)Other 2,461 5,693 922 2,060 2,627

Total noninterest income 130,813 421 121,822 129,396 116,071

Noninterest expense:Salaries and employee benefits 242,023 251,133 243,519 238,731 245,518Occupancy, net 29,477 30,095 29,339 29,962 28,495Furniture, equipment and software 30,416 31,247 29,713 30,858 28,524Other real estate expense (40) (445) 374 (3,467) 875Credit-related expense 6,914 8,106 5,939 7,518 6,508Provision for unfunded lending commitments 1,428 (2,326) 1,211 1,699 (16,095)Professional and legal services 12,699 13,110 11,483 26,257 16,588Advertising 6,136 6,511 6,975 5,805 6,094FDIC premiums 8,500 8,609 8,119 8,031 8,204Amortization of core deposit and other intangibles 2,298 2,318 2,358 2,640 2,665Debt extinguishment cost — 2,395 — — 44,422Other 56,298 53,347 58,431 74,632 66,738

Total noninterest expense 396,149 404,100 397,461 422,666 438,536Income before income taxes 141,779 19,459 143,201 125,573 148,997

Income taxes 40,780 5,499 51,176 43,759 53,109Net income 100,999 13,960 92,025 81,814 95,888

Preferred stock dividends (16,761) (15,060) (16,746) (15,053) (16,761)Net earnings (loss) applicable to common shareholders $ 84,238 $ (1,100) $ 75,279 $ 66,761 $ 79,127

Weighted average common shares outstanding during the period:Basic shares 203,668 202,888 202,603 202,783 196,687Diluted shares 204,155 202,888 202,944 203,278 197,271

Net earnings (loss) per common share:Basic $ 0.41 $ (0.01) $ 0.37 $ 0.33 $ 0.40Diluted 0.41 (0.01) 0.37 0.33 0.40


- more -

Note: FDIC-supported/PCI loans previously disclosed separately at September 30, 2014 have been reclassified to their respectiveloan segments and classes due to declining materiality. Subsequent schedules presented herein reflect, as applicable, thesereclassifications.

Loan Balances Held for Investment by Portfolio Type (Unaudited)

(In millions) September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Commercial:Commercial and industrial $ 13,035 $ 13,111 $ 13,264 $ 13,163 $ 12,874Leasing 427 402 407 409 405Owner occupied 7,141 7,277 7,310 7,351 7,430Municipal 600 589 555 521 518

Total commercial 21,203 21,379 21,536 21,444 21,227

Commercial real estate:Construction and land development 2,214 2,062 2,045 1,986 1,895Term 8,089 8,058 8,088 8,127 8,259

Total commercial real estate 10,303 10,120 10,133 10,113 10,154

Consumer:Home equity credit line 2,347 2,348 2,315 2,321 2,2661-4 family residential 5,269 5,194 5,213 5,201 5,156Construction and other consumer real estate 370 372 373 371 350Bankcard and other revolving plans 428 409 407 401 389Other 193 202 203 213 198

Total consumer 8,607 8,525 8,511 8,507 8,359Total loans $ 40,113 $ 40,024 $ 40,180 $ 40,064 $ 39,740

Nonperforming Assets (Unaudited)

(Amounts in thousands)September 30,

2015June 30,

2015March 31,

2015December 31,

2014September 30,

2014

Nonaccrual loans $ 359,272 $ 372,830 $ 382,066 $ 306,648 $ 307,230Other real estate owned 12,799 13,269 17,256 18,916 27,418

Total nonperforming assets $ 372,071 $ 386,099 $ 399,322 $ 325,564 $ 334,648

Ratio of nonperforming assets to loans1 and leases andother real estate owned 0.92% 0.96% 0.99% 0.81% 0.84%

Accruing loans past due 90 days or more $ 34,857 $ 27,204 $ 31,552 $ 29,228 $ 30,755Ratio of accruing loans past due 90 days or more toloans1 and leases 0.09% 0.07% 0.08% 0.07% 0.08%

Nonaccrual loans and accruing loans past due 90 daysor more $ 394,129 $ 400,034 $ 413,618 $ 335,876 $ 337,985

Ratio of nonaccrual loans and accruing loans past due90 days or more to loans1 and leases 0.98% 1.00% 1.03% 0.84% 0.85%

Accruing loans past due 30-89 days $ 118,316 $ 124,955 $ 97,242 $ 86,488 $ 89,081

Restructured loans included in nonaccrual loans 108,387 118,358 110,364 97,779 109,673Restructured loans on accrual 178,136 180,146 199,065 245,550 264,994

Classified loans 1,323,068 1,293,022 1,268,981 1,147,106 1,187,407

1 Includes loans held for sale.


- more -

Allowance for Credit Losses (Unaudited)

Three Months Ended

(Amounts in thousands) September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Allowance for Loan LossesBalance at beginning of period $ 609,375 $ 620,013 $ 604,663 $ 610,277 $ 675,907Add:

Provision for losses 18,262 566 (1,494) 11,587 (54,643)Adjustment for FDIC-supported/PCI loans — 38 (38) (19) (25)

Deduct:Gross loan and lease charge-offs (42,359) (31,048) (20,188) (35,544) (26,471)Recoveries 11,162 19,806 37,070 18,362 15,509

Net loan and lease (charge-offs) recoveries (31,197) (11,242) 16,882 (17,182) (10,962)

Balance at end of period $ 596,440 $ 609,375 $ 620,013 $ 604,663 $ 610,277

Ratio of allowance for loan losses to loans andleases, at period end 1.49% 1.52% 1.54 % 1.51% 1.54%

Ratio of allowance for loan losses to nonperformingloans, at period end 166.01% 163.45% 162.28 % 197.18% 198.64%

Annualized ratio of net loan and lease charge-offs toaverage loans 0.31% 0.11% (0.17)% 0.17% 0.11%

Reserve for Unfunded Lending CommitmentsBalance at beginning of period $ 79,961 $ 82,287 $ 81,076 $ 79,377 $ 95,472Provision charged (credited) to earnings 1,428 (2,326) 1,211 1,699 (16,095)

Balance at end of period $ 81,389 $ 79,961 $ 82,287 $ 81,076 $ 79,377

Total Allowance for Credit LossesAllowance for loan losses $ 596,440 $ 609,375 $ 620,013 $ 604,663 $ 610,277Reserve for unfunded lending commitments 81,389 79,961 82,287 81,076 79,377

Total allowance for credit losses $ 677,829 $ 689,336 $ 702,300 $ 685,739 $ 689,654

Ratio of total allowance for credit losses to loans andleases outstanding, at period end 1.69% 1.72% 1.75% 1.71% 1.74%


- more -

Nonaccrual Loans by Portfolio Type(Unaudited)

(In millions)September 30,

2015June 30,

2015March 31,

2015December 31,

2014September 30,

2014

Commercial:Commercial and industrial 167 165 163 106 88Leasing — — — — 1Owner occupied 77 89 98 87 98Municipal 1 1 1 1 8

Total commercial 245 255 262 194 195

Commercial real estate:Construction and land development 15 20 22 24 25Term 39 44 38 25 30

Total commercial real estate 54 64 60 49 55

Consumer:Home equity credit line 10 9 10 12 121-4 family residential 48 43 48 50 43Construction and other consumer real estate 1 1 2 2 2Bankcard and other revolving plans 1 1 — — —Other — — — — —

Total consumer 60 54 60 64 57Total nonaccrual loans $ 359 $ 373 $ 382 $ 307 $ 307

Net Charge-Offs by Portfolio Type(Unaudited)

Three Months Ended

(In millions) September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Commercial:Commercial and industrial $ 30 $ 13 $ (5) $ 18 $ 9Leasing — — — — —Owner occupied 3 (3) — — 2Municipal — — — — —

Total commercial 33 10 (5) 18 11

Commercial real estate:Construction and land development (2) (1) (3) (1) (2)Term (1) 2 (10) (1) 2

Total commercial real estate (3) 1 (13) (2) —

Consumer:Home equity credit line 1 — (1) — —1-4 family residential — — 1 1 (1)Construction and other consumer real estate (1) — — — —Bankcard and other revolving plans — 1 1 — 1Other 1 (1) — — —

Total consumer loans 1 — 1 1 —Total net charge-offs (recoveries) $ 31 $ 11 $ (17) $ 17 $ 11


- more -

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES(Unaudited)

Three Months EndedSeptember 30, 2015 June 30, 2015 March 31, 2015

(In thousands) Averagebalance

Averageyield/rate

Averagebalance

Averageyield/rate

Averagebalance

Averageyield/rate

ASSETSMoney market investments $ 8,775,823 0.27% $ 8,414,602 0.28% $ 8,013,355 0.26%Securities:

Held-to-maturity 553,615 5.07% 583,349 5.06% 632,927 5.12%Available-for-sale 5,254,986 1.85% 4,585,760 1.99% 4,080,004 2.06%Trading account 47,235 3.74% 76,706 3.19% 69,910 3.47%

Total securities 5,855,836 2.17% 5,245,815 2.35% 4,782,841 2.49%

Loans held for sale 131,113 3.70% 115,377 3.48% 105,279 3.52%Loans 1:

Commercial 21,289,641 4.15% 21,527,723 4.22% 21,576,463 4.20%Commercial real estate 10,170,539 4.47% 10,089,092 4.47% 10,084,874 4.46%Consumer 8,565,075 3.90% 8,514,519 3.91% 8,517,670 3.95%

Total loans 40,025,255 4.18% 40,131,334 4.22% 40,179,007 4.21%Total interest-earning assets 54,788,027 3.34% 53,907,128 3.42% 53,080,482 3.46%Cash and due from banks 583,936 591,347 743,618Allowance for loan losses (602,677) (621,348) (609,233)Goodwill 1,014,129 1,014,129 1,014,129Core deposit and other intangibles 19,726 22,135 24,355Other assets 2,602,639 2,564,121 2,564,199

Total assets $ 58,405,780 $ 57,477,512 $ 56,817,550

LIABILITIES AND SHAREHOLDERS’ EQUITYInterest-bearing deposits:

Savings and money market $ 24,676,897 0.16% $ 24,514,516 0.16% $ 24,214,265 0.16%Time 2,242,064 0.43% 2,300,593 0.43% 2,372,492 0.43%Foreign 441,670 0.18% 325,640 0.14% 351,873 0.14%

Total interest-bearing deposits 27,360,631 0.18% 27,140,749 0.18% 26,938,630 0.18%Borrowed funds:

Federal funds and other short-term borrowings 211,322 0.14% 214,287 0.14% 219,747 0.14%Long-term debt 1,033,818 7.00% 1,081,785 7.10% 1,091,706 7.03%

Total borrowed funds 1,245,140 5.83% 1,296,072 5.95% 1,311,453 5.87%Total interest-bearing liabilities 28,605,771 0.43% 28,436,821 0.44% 28,250,083 0.45%Noninterest-bearing deposits 21,558,557 20,984,073 20,545,395Other liabilities 581,880 559,722 612,752

Total liabilities 50,746,208 49,980,616 49,408,230Shareholders’ equity:

Preferred equity 1,004,059 1,004,031 1,004,015Common equity 6,655,513 6,492,865 6,405,305

Total shareholders’ equity 7,659,572 7,496,896 7,409,320Total liabilities and shareholders’ equity $ 58,405,780 $ 57,477,512 $ 56,817,550

Spread on average interest-bearing funds 2.91% 2.98% 3.01%

Net yield on interest-earning assets 3.11% 3.18% 3.22%

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


- more -

GAAP to Non-GAAP Reconciliations(Unaudited)

(In thousands, except per share amounts) September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Tangible Book Value per Common Share

Total shareholders’ equity (GAAP) $ 7,638,095 $ 7,530,175 $ 7,454,298 $ 7,369,530 $ 7,322,159Preferred stock (1,004,159) (1,004,032) (1,004,032) (1,004,011) (1,004,006)Goodwill (1,014,129) (1,014,129) (1,014,129) (1,014,129) (1,014,129)Core deposit and other intangibles (18,546) (20,843) (23,162) (25,520) (28,160)

Tangible common equity (non-GAAP) (a) $ 5,601,261 $ 5,491,171 $ 5,412,975 $ 5,325,870 $ 5,275,864

Common shares outstanding (b) 204,279 203,741 203,193 203,015 202,898

Tangible book value per common share(non-GAAP) (a/b) $ 27.42 $ 26.95 $ 26.64 $ 26.23 $ 26.00

Three Months Ended

(Dollar amounts in thousands) September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Tangible Return on Average Tangible Common Equity

Net earnings (loss) applicable to commonshareholders (GAAP) $ 84,238 $ (1,100) $ 75,279 $ 66,761 $ 79,127

Adjustments, net of tax:Amortization of core deposit and otherintangibles 1,461 1,472 1,496 1,676 1,690

Net earnings applicable to commonshareholders, excluding the effects of theadjustments, net of tax (non-GAAP) (a) $ 85,699 $ 372 $ 76,775 $ 68,437 $ 80,817

Average common equity (GAAP) $ 6,655,513 $ 6,492,865 $ 6,405,305 $ 6,521,187 $ 6,221,344Average goodwill (1,014,129) (1,014,129) (1,014,129) (1,014,129) (1,014,129)Average core deposit and other intangibles (19,726) (22,135) (24,355) (26,848) (29,535)Average tangible common equity (non-GAAP) (b) $ 5,621,658 $ 5,456,601 $ 5,366,821 $ 5,480,210 $ 5,177,680

Number of days in quarter (c) 92 91 90 92 92Number of days in year (d) 365 365 365 365 365

Tangible return on average tangiblecommon equity (non-GAAP) (a/b/c*d) 6.05% 0.03% 5.80% 4.95% 6.19%


- more -

Three Months Ended

(Dollar amounts in thousands) September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Efficiency Ratio

Noninterest expense (GAAP) (a) $ 396,149 $ 404,100 $ 397,461 $ 422,666 $ 438,536Adjustments:

Severance costs 3,464 1,707 2,253 1,747 4,919Other real estate expense (40) (445) 374 (3,467) 875Provision for unfunded lending commitments 1,428 (2,326) 1,211 1,699 (16,095)Debt extinguishment cost — 2,395 — — 44,422Amortization of core deposit and otherintangibles 2,298 2,318 2,358 2,640 2,665

Restructuring costs 833 650 — — —Total adjustments 7,983 4,299 6,196 2,619 36,786

Add-back of adjustments (b) (7,983) (4,299) (6,196) (2,619) (36,786)

Adjusted noninterest expense (non-GAAP) (a+b)=(c) $ 388,166 $ 399,801 $ 391,265 $ 420,047 $ 401,750

Taxable-equivalent net interest income(GAAP) (d) $ 429,782 $ 428,015 $ 421,581 $ 434,789 $ 420,850

Noninterest income (GAAP) (e) 130,813 421 121,822 129,396 116,071Adjustments:

Fair value and nonhedge derivative income (loss) (1,555) 1,844 (1,088) (961) 44Equity securities gains, net 3,630 4,839 3,353 9,606 440Fixed income securities losses, net (53) (138,436) (239) (11,620) (13,901)Total adjustments 2,022 (131,753) 2,026 (2,975) (13,417)

Add-back of adjustments (f) (2,022) 131,753 (2,026) 2,975 13,417Adjusted taxable-equivalent net interestincome and noninterest income (non-GAAP) (d+e+f)=(g) $ 558,573 $ 560,189 $ 541,377 $ 567,160 $ 550,338

Efficiency ratio (c/g) 69.5% 71.4% 72.3% 74.1% 73.0%

This press release presents the non-GAAP financial measures previously shown. The adjustments to reconcile from theapplicable GAAP financial measures to the non-GAAP financial measures are included where applicable in financialresults presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoingoperating results.

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

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


# # #

October 19, 2015

Third Quarter 2015 Financial Review

Forward-Looking Statements

This presentation contains statements that relate to the projected or modeled

performance or condition of Zions Bancorporation and elements of or affecting such

performance or condition, including statements with respect to forecasts, opportunities,

models, illustrations, scenarios, beliefs, plans, objectives, goals, guidance, expectations,

anticipations or estimates, and similar matters. These statements constitute forward-

looking information within the meaning of the Private Securities Litigation Reform Act.

Actual facts, determinations, results or achievements may differ materially from the

statements provided in this presentation since such statements involve significant known

and unknown risks and uncertainties. Factors that might cause such differences include,

but are not limited to: competitive pressures among financial institutions; economic,

market and business conditions, either nationally, internationally, or locally in areas in

which Zions Bancorporation conducts its operations, being less favorable than expected;

changes in the interest rate environment reducing expected interest margins; changes in

debt, equity and securities markets including but not limited to the ability to successfully

tender for preferred equity; adverse legislation or regulatory changes; Federal Reserve

reviews of our annual capital plan; and other factors described in Zions Bancorporation’s

most recent annual and quarterly reports. In addition, the statements contained in this

presentation are based on facts and circumstances as understood by management of the

company on the date of this presentation, which may change in the future. Except as

required by law, Zions Bancorporation disclaims any obligation to update any statements

or to publicly announce the result of any revisions to any of the forward-looking

statements included herein to reflect future events, developments, determinations or

understandings.

2

Chairman’s Message

3

What is working within expectations:

Charter consolidation

Tracking on efficiency initiative

• Zions is on track to achieve the committed one-half of the gross $120 million

expense reduction by the end of 2015

• Efficiency ratio on track to be below 70% for 2H15

Systems replacement, while maintaining noninterest expense levels

Enhancing retail banking

Substantially stronger risk management

Driving deposit growth

Deploying cash to securities

What needs additional attention:

Loan growth has been below target

• Net of the Energy and National Real Estate portfolio declines, growth equaled $1.1B

during the past year, or 3.4%

Driving stronger core fee income

Efficiency Initiative Expense progress is tracking well

4

Noninterest Expense:

• Commitment to hold expenses below

$1.6 billion in 2015 (and 2016).

• Status: On track

Cost savings:

• Commitment to achieve a gross $120

million of savings, half of which

targeted to be realized by the end of

2015.

• Status: On track

Setting the stage for 2016:

• Coordination throughout organization

to achieve deadlines for year end

consolidation, setting stage for 2016

targeted savings

$0

$20

$40

$60

$80

$100

$120

$140

2017 Gross Cost Savings Goal Projected Year-End SavingsRealized

Cost Saving Initiative Progress

Operations -- Affiliate Banks Operations -- Bancorp

Technology Charter Consolidation

Efficiency Ratio: Sharp focus leading to substantial improvement

5

The efficiency ratio improved to

69.5%, from 73.0% a year ago.

Reiterating the commitment to

drive the efficiency ratio to:

• Less than or equal to 70% for

the second half of 2015

• Less than or equal to 66% for

2016

• The low 60s for 2017

1) Efficiency ratio defined as noninterest expense adjusted for severance, other real estate expense, provision for unfunded lending commitments,

debt extinguishment costs, amortization of core deposit intangibles, restructuring costs, expressed as a percentage of, the sum of fully-taxable

equivalent net interest income, noninterest income excluding gains / losses on securities, and fair value and nonhedge derivative income. See page 15

of the 3Q15 earnings release for reconciling table.

73.0% 74.1%

72.3% 71.4%

69.5%

55%

60%

65%

70%

75%

80%

3Q14 4Q14 1Q15 2Q15 3Q15

Noninterest Expenses as a Percentage of Net Revenue1

Investing in the Business: Major Investment Substantial planning and effort has resulted in an on-track outcome

6

Chart of Accounts / Financial Reporting Simplification

• GL transition and new reporting tool conversion complete

• Phase 2 support of core systems will rollout in 2016 & 2017

Credit Approval Front-End Work Flow System

• Status: Software developed, installed in 50% of affiliate banks

• Completion Expected: Spring 2016

Enterprise Loan Operations (boarding / servicing / loan maintenance):

• Consolidate and streamline 15 operations centers to 2 centers

• Completion Expected: Early 2016

Core System (FutureCore): Loan and Deposit Processing Systems

• Consumer loan system on track for mid-2016 rollout

• Commercial loan system scheduled for 2017 rollout

• Deposit system scheduled for 2018 rollout

Other Announced Organizational Alignments on Schedule

• Charter Consolidation (12/31/2015)

• Credit administration alignment to push greater decision-making closer to the customer

• Creation of an enterprise retail banking function

• Accounting operation consolidation

• Wealth Management consolidation of multiple trust, broker dealer, investment

management platforms

$36,000

$39,000

$42,000

$45,000

3Q14 4Q14 1Q15 2Q15 3Q15

Total Loans

35%

40%

45%

50%

$40,000

$42,000

$44,000

$46,000

$48,000

$50,000

3Q14 4Q14 1Q15 2Q15 3Q15

Total Deposits

Total Deposits (left)

Non-Interest Bearing Deposits as a % of Total (right)

Total Loan and Deposit Growth

7

In Millions In Millions

• Slight growth of loans net of attrition due primarily to attrition in select divisions,

including energy and national real estate

• Strong mix of deposits, with 44% of total deposits in non-interest bearing

accounts

Financial Results

8

Three Months Ended (Dollar amounts in millions, except per share data) September 30,

2015 June 30, 2015

September 30,

2014

Earnings Results:

Diluted Earnings Per Share 0.41 (0.01) 0.40

Adjusted Earnings Per Share* NA 0.41 NA

Net Interest Income 425 424 417

Provision for Loan Losses 18 1 (55)

Noninterest Income 131 0 116

Noninterest Expense 396 404 439

Net Earnings (Loss) Applicable to Common Shareholders 84 (1) 79

Ratios:

Return on Average Assets 0.69 % 0.10 % 0.69 %

Return on Average Common Equity 5.02 % (0.07) % 5.10 %

Tangible Return on Avg Tangible Common Equity 6.05 % 0.03 % 6.19 %

Net Interest Margin 3.11 % 3.18 % 3.20 %

Yield on Loans 4.18 % 4.22 % 4.33 %

Yield on Securities 2.17 % 2.35 % 2.57 %

Average Cost of Deposits** 0.10 % 0.10 % 0.11 %

Efficiency Ratio 69.5 % 71.4 % 73.0 %

Ratio of Nonperforming Lending-Related Assets to Loans, Leases and OREO 0.92 % 0.96 % 0.84 %

Annualized Ratio of Net Loan and Lease Charge-offs to Average Loans 0.31 % 0.11 % 0.11 %

Basel III Common Equity Tier 1 12.17 % 12.00 %

Basel I Tier 1 Common Equity 11.86 %

* Adjusted for the sale of remaining CDOs in 2Q2015

**Includes noninterest bearing deposits

Efficiency ratio defined as noninterest expense adjusted for severance, other real estate expense, provision for

unfunded lending commitments, debt extinguishment costs, amortization of core deposit intangibles, restructuring

costs, expressed as a percentage of, the sum of fully-taxable equivalent net interest income, noninterest income

excluding gains / losses on securities , and fair value and nonhedge derivative income.

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

3Q14 4Q14 1Q15 2Q15 3Q15

Total Securities

Other Securities

Municipal Securities

Small Business Administration Loan-Backed Securities

Agency Securities

Agency Guaranteed MBS Securities

Securities Portfolio Growth Short-to-medium duration portfolio; limited duration extension risk

9

In Millions

Added net $1.4B of high quality

liquid assets during 3Q15

Portfolio Duration

• Status quo: 2.6 years

• Rates +200 bps: 2.7 years

Modeled Annual Change in a +200

Interest Rate Environment

Fast Slow

Net Interest Income –

3Q15 (1)

10% 19%

Net Interest Income –

2Q15

13% 20%

12-month simulated impact using a static-sized balance sheet and a parallel shift in the yield curve, and is based on statistical analysis relating pricing and

deposit migration to benchmark rates (e.g. Libor, U.S. Treasuries). “Fast” refers to an assumption that market rates on deposits will adjust at a faster

speed in response to changes in interest rates. “Slow” refers to an assumption that market rates on deposits will adjust at a moderate rate (i.e. supply of

deposits exceeds demand for loans).

(1) Preliminary analysis, subject to refinement

Loan Growth by Affiliate and Type: Pockets of Strength offset by National Real Estate and Energy

10

Source: Company documents;); NRE = National Real Estate Group, a division of Zions Bank that focuses on small

business loans generally underwritten using SBA 504 guidelines.

Year-over-Year Loan Growth

Zions Bank California B&T Amegy

Nat'l Bank of

AZ

Nevada State

Bank Vectra Commerce Total

Commercial & Industrial $327 $176 -$347 $77 -$102 $27 -$21 $139

Owner Occupied (ex NRE) $104 $35 -$1 -$33 -$43 -$6 $8 $64

Construction & Development $95 -$52 $170 $51 -$2 $69 -$10 $321

Term CRE (ex NRE) -$23 $206 $64 -$11 $40 -$94 -$7 $175

1-4 Family $7 -$155 $260 -$19 -$18 $38 $3 $116

National Real Estate (NRE) -$509 -- -- -- -- -- -- -$509

Total (ex NRE) $539 $80 $194 $100 -$97 $77 -$12 $882

Total $30 $80 $194 $100 -$97 $77 -$12 $373

4% 1%

17%

3% 2%

-18%

-8%

1%

-20%

-10%

0%

10%

20%

C&I (ex Energy) OwnerOccupied (ex

NRE)

C&D Term CRE (exNRE)

1-4 Family National RealEstate

Energy Total

Year-over-Year Loan Growth

All values in millions

Net Interest Income Drivers Loan yield is relatively stable; margin down in part due to mix shift

11

• Mix shift pressure: Continued

growth of average deposits

without commensurate increase

of average loans resulted in

slight NIM pressure

• Decline in income from loans

purchased from FDIC in 2009

accounted for most of the

compression of loan yields

• MBS premium amortization

increased due to elevated

prepayment speeds

3.20% 3.25% 3.22% 3.18% 3.11%

0%

1%

2%

3%

4%

5%

3Q14 4Q14 1Q15 2Q15 3Q15

Net Interest Margin (NIM)

Loan Yield

Securities Yield

Interest Expense / Interest Earning Assets: Purple

Net Interest Margin

Net Interest Income: Loan pricing discipline supports NIM stability

12

3.0%

3.5%

4.0%

4.5%

5.0%

3Q14 4Q14 1Q15 2Q15 3Q15

Portfolio Yield vs. Production Yield

• Stable linked-quarter loan yield

• Coupon rate of new loan

production (green) decreased to

3.65% from 3.74% in the prior

quarter, primarily due to pricing

pressure on larger loans.

• Volume of new production (not

shown) decreased 4% from prior

quarter, but was more than offset

by lower run-off rates, resulting in

slight net loan growth.

Loans HFI = Loans held for investment; the difference between the coupon and the yield is

the net of amortizing fee income, partially offset by amortizing expense.

Loan Portfolio

HFI Yield

Loan Portfolio

HFI Coupon

Loan HFI

Production

Yield

Credit Quality: Overall Credit Quality Remains Generally Strong

13

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

3Q14 4Q14 1Q15 2Q15 3Q15

Key Credit Quality Ratios

Classifieds / Loans Nonperforming Assets / Loans

Net Charge-offs / Loans

Net Charge-offs / Loans annualized

• Continued strong credit quality

performance.

Relative to June 30, 2015:

• Classified loans increased 2.3%

• NPAs declined 3.6%

• Moderate increase in classified

loans attributable to energy loans

• Allowance for credit loss remains

strong, at 1.69% of total loans and

leases

• 1.6x coverage of NPAs

• 4.7x coverage of annualized NCOs

Energy Portfolio Detail

14 *Because many borrowers operate in multiple businesses, judgment has been applied in characterizing a borrower as energy-related, including a

particular segment of energy-related activity, e.g., upstream or downstream.

Continued attrition of loan

balances, generally driven by

borrowers paying down or

paying off their balances

Loan downgrades continued

as expected, primarily from

oilfield services but also from

upstream loans

Zions added to the allowance

for credit losses during 3Q15.

The decision was driven in

part from the substantial

decline in oil prices (from

$59.47 on Jun 30 to $45.09 on

Sep 30).

Zions expects further

downgrades during next two

quarters

Reserve for energy loans is

considered strong

(In millions) 9/30/2015

% of

total 6/30/2015

$

Change

%

Change 3/31/2015

Loans and leases:

Oil and gas related:

Upstream - exploration and production $ 924 33 % $ 954 (30) (3)% $ 1,078

Midstream – marketing and

transportation 626 22 % 589 37 6 % 654

Downstream – refining 124 5 % 131 (7) (5)% 140

Other non-services 55 2 % 75 (20) (27)% 57

Oilfield services 825 29 % 879 (54) (6)% 959

Energy service manufacturing 251 9 % 255 (4) (2)% 269

Total oil and gas related 2,805 100 % 2,883 (78) (3)% 3,157

Alternative energy loans 214 222 (8) (4)% 232

Total loan and lease balances 3,019 3,105 (86) (3)% 3,389

Unfunded lending commitments 2,364 2,403 (39) (2)% 2,451

Total credit exposure $ 5,383 $ 5,508 (125) (2)% $ 5,840

Private equity investments 17 18 (1) (6)% 20

Credit Quality Measures of oil and gas

Classified loan ratio 15.7 % 11.3 % 9.3 %

Nonperforming loan ratio 3.0 % 2.3 % 2.1 %

Net charge-off ratio, annualized 2.4 % —% 0.3 %

Houston Economic Data: Employment remains stronger than national levels; housing indicators show healthy volume and inventory

15

-10

-5

0

5

10

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

Business Economic Statistics: Houston PMI less National PMI 0

1

2

3

4

5

6

0

10,000

20,000

30,000

40,000

50,000

1H12 2H12 1H13 2H13 1H14 2H14 1H15

Houston Home Sales and Inventory

Home Sales (Left) Months Inventory (Right)

-2%

0%

2%

4%

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

Houston Employment: Houston less National Rate / Level

Employment Growth Rate since 1Q12 Unemployment Rate

Source: Bureau of Labor Statistics, Bloomberg, Texas A&M University Real Estate Center

Houston Commercial Real Estate Data Moderate weakness realized and expected in vacancy rates; rents still above 2012 levels

16

0%

5%

10%

15%

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

Vacancy Rate - Houston

100

110

120

130

140

150

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

Price Index - Houston

Source: CoStar

95

100

105

110

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

Indexed Rent Growth - Houston

Apartment Office Retail

17

Zions’ Commercial Real Estate Portfolio in Texas Houston is approximately 3/5ths of total Texas exposure; increase from 2Q in part due to new

commitments in Term, draws on C&D and conversion to Term from C&D

$0 $50 $100 $150 $200 $250 $300 $350 $400

Other

Industrial

Hospitality

Office

Retail

Apartments

Commercial Term

Houston - 62% TX-Not Houston - 38%

$0 $50 $100 $150 $200

Other

Land Development

Industrial

Hospitality

Retail

Office

Apartments

Commercial Construction


$0 $50 $100 $150 $200 $250

Other

Land Development

Single Family Housing

Residential Construction


Next 12-Month Outlook Summary Relative to 3Q15 Results

Topic Outlook Comment

Loan Balances Slightly to

Moderately Increasing • Loan growth is difficult to forecast, as prepayments remain

volatile, along with softness from energy lending.

Net Interest Income Moderately Increasing

• Driven by loan growth, MBS purchases, and sub debt reduction ($8.6 million interest expense incurred in 3Q15, or 6 basis points of NIM)

• Deploying cash into medium duration, HQLA-qualifying agency MBS

Provisions Flat to

Slightly Positive

• On average, provisions likely to be flat to slightly positive, reflecting low net charge-offs, loan growth, and expected downgrades of energy-related loans

Noninterest Income Slightly to

Moderately Increasing

• Excluding securities gains/losses, branch sales, fair value & nonhedge derivative income

• Dividends from federal agencies declining due to charter consolidation

Noninterest Expense Stable • Targeting NIE of less than $1.6 billion in FY15 and FY16 • Includes elevated spending on technology systems

overhaul to continue

Preferred Dividends Declining

• $180 million (par value plus accrued dividends plus tender premium) cash tender offer outstanding

• Reduces preferred dividend expense in 2016 by approximately $10 million, or about $0.05/share annually

18

view entire press release

Documents