SALT LAKE CITY, Oct. 18 /PRNewswire-FirstCall/ -- Zions Bancorporation ("Zions" or "the Company") today reported third quarter net earnings applicable to common shareholders of $132.0 million, or $1.22 per diluted common share, compared to $153.7 million or $1.42 per diluted common share for the third quarter of 2006. The return on average common equity was 10.50% compared to 12.50% for the second quarter of 2007 and 13.41% for the third quarter of 2006.

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

Third Quarter 2007 Key Performance Highlights Compared to Second Quarter 2007

-- Loan growth of $1.0 billion. -- Increased credit costs: Provision for loan losses of $55.4 million, up $37.6 million. Net loan and lease charge-offs of $18.1 million, up $9.4 million. Nonperforming assets of $196.6 million, up $101.2 million. -- Net interest margin of 4.44%, down nine basis points. -- Average core deposits increased slightly; average total and demand deposits decreased slightly.

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

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

Loan Growth

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

Deposits

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

Net Interest Income

Net interest income for the third quarter of 2007 increased $7.3 million or 6.2% annualized to $476.6 million compared to $469.3 million for the second quarter of 2007, and increased $30.1 million or 6.7% compared to $446.5 million for the third quarter of 2006. Taxable-equivalent net interest income for the third quarter of 2007 increased $7.1 million or 5.9% annualized to $483.1 million compared to $476.1 million for the second quarter of 2007, and increased $30.5 million or 6.7% from $452.6 million for the third quarter of 2006.

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

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

Noninterest Income

Noninterest income for the third quarter of 2007 was $145.8 million compared to $141.3 million for the second quarter of 2007 and $145.3 million for the third quarter of 2006. Loan sales and servicing income increased during the quarter primarily due to the absence of pretax impairment charges on retained interests from certain previous small business loan securitizations. Income from securities conduit decreased $2.7 million primarily because of the higher cost of asset-backed commercial paper. Dividends and other investment income increased $3.4 million primarily due to increased income from investments accounted for on the equity method. Trading and nonhedge derivative income decreased $10.4 million primarily because of decreases in the fair value of nonhedge derivatives due to the decreasing spreads between LIBOR and prime rates. Net equity securities gains increased during the quarter primarily because of $11.1 million of net gains on venture capital investments. Net of related minority interest of $7.5 million, income taxes and other expenses, the gains from consolidated venture capital investments increased net income by approximately $1.9 million, or $0.02 per diluted common share.

Noninterest Expense

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

Asset Quality

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

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

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

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

Capital Management

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

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

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

Other Events

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

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

Conference Call

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

About Zions Bancorporation

Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Zions operates its banking businesses under local management teams and community identities through over 500 offices and approximately 600 ATMs in ten Western and Southwestern states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The Company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at 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; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

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

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

ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) (In thousands, except per share and Three Months Ended ratio data) September 30, 2007 2006 % Change EARNINGS Taxable-equivalent net interest income $483,115 $452,606 6.74 % Taxable-equivalent revenue 628,938 597,935 5.19 % Net interest income 476,637 446,511 6.75 % Noninterest income 145,823 145,329 0.34 % Provision for loan losses 55,354 14,363 285.39 % Noninterest expense 352,031 330,028 6.67 % Income before income taxes and minority interest 215,075 247,449 (13.08)% Income taxes 71,853 83,790 (14.25)% Minority interest 7,490 9,985 (24.99)% Net income 135,732 153,674 (11.68)% Net earnings applicable to common shareholders 131,962 153,674 (14.13)% PER COMMON SHARE Net earnings (diluted) 1.22 1.42 (14.08)% Dividends 0.43 0.36 19.44 % Book value per common share SELECTED RATIOS Return on average assets 1.10% 1.36% Return on average common equity 10.50% 13.41% Efficiency ratio 55.97% 55.19% Net interest margin 4.44% 4.58% ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) (In thousands, except per share and Nine Months Ended ratio data) September 30, 2007 2006 % Change EARNINGS Taxable-equivalent net interest income $1,422,896 $1,323,691 7.49 % Taxable-equivalent revenue 1,855,474 1,735,019 6.94 % Net interest income 1,403,067 1,305,685 7.46 % Noninterest income 432,578 411,328 5.17 % Provision for loan losses 82,228 45,897 79.16 % Noninterest expense 1,051,622 987,511 6.49 % Income before income taxes and minority interest 701,795 683,605 2.66 % Income taxes 246,772 237,869 3.74 % Minority interest 6,819 9,119 (25.22)% Net income 448,204 436,617 2.65 % Net earnings applicable to common shareholders 437,224 436,617 0.14 % PER COMMON SHARE Net earnings (diluted) 4.01 4.04 (0.74)% Dividends 1.25 1.08 15.74 % Book value per common share 46.92 43.47 7.94 % SELECTED RATIOS Return on average assets 1.24% 1.34% Return on average common equity 11.74% 13.18% Efficiency ratio 56.68% 56.92% Net interest margin 4.49% 4.64% ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) (In thousands, except share Three Months Ended and ratio data) September 30, 2007 2006 % Change AVERAGE BALANCES Total assets $48,903,319 $44,680,382 9.45 % Securities 5,221,722 5,605,249 (6.84)% Net loans and leases 37,194,850 33,105,716 12.35 % Goodwill 2,015,532 1,881,708 7.11 % Core deposit and other intangibles 177,864 175,259 1.49 % Total deposits 35,756,600 32,964,029 8.47 % Core deposits (1) 31,067,905 29,427,975 5.57 % Minority interest 37,527 37,854 (0.86)% Shareholders' equity: Preferred equity 240,000 - - Common equity 4,987,275 4,545,990 9.71 % Weighted average common and common- equivalent shares outstanding 107,879,963 108,061,423 (0.17)% AT PERIOD END Total assets Securities Net loans and leases Sold loans being serviced (2) Allowance for loan losses Allowance for unfunded lending commitments Goodwill Core deposit and other intangibles Total deposits Core deposits (1) Minority interest Shareholders' equity: Preferred equity Common equity Common shares outstanding Average equity to average assets 10.69% 10.17% Common dividend payout 34.96% 25.00% Tangible equity ratio Nonperforming assets Accruing loans past due 90 days or more Nonperforming assets to net loans and leases and other real estate owned at period end (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 share Nine Months Ended and ratio data) September 30, 2007 2006 % Change AVERAGE BALANCES Total assets $48,141,571 $43,710,533 10.14 % Securities 5,480,047 5,849,953 (6.32)% Net loans and leases 36,254,519 31,834,510 13.88 % Goodwill 2,003,972 1,884,462 6.34 % Core deposit and other intangibles 186,884 185,619 0.68 % Total deposits 35,636,209 32,390,954 10.02 % Core deposits (1) 30,769,026 29,394,957 4.67 % Minority interest 37,747 31,556 19.62 % Shareholders' equity: Preferred equity 240,000 - - Common equity 4,978,473 4,428,182 12.43 % Weighted average common and common- equivalent shares outstanding 109,059,322 107,949,894 1.03 % AT PERIOD END Total assets $50,044,686 $45,777,747 9.32 % Securities 5,261,057 5,817,571 (9.57)% Net loans and leases 37,822,259 33,706,110 12.21 % Sold loans being serviced (2) 2,022,142 2,796,644 (27.69)% Allowance for loan losses 418,165 356,342 17.35 % Allowance for unfunded lending commitments 21,394 18,637 14.79 % Goodwill 2,021,519 1,884,328 7.28 % Core deposit and other intangibles 172,140 168,135 2.38 % Total deposits 35,774,713 33,640,991 6.34 % Core deposits (1) 31,239,069 30,027,827 4.03 % Minority interest 37,411 41,158 (9.10)% Shareholders' equity: Preferred equity 240,000 - - Common equity 5,016,980 4,643,166 8.05 % Common shares outstanding 106,934,360 106,804,606 0.12 % Average equity to average assets 10.84% 10.13% Common dividend payout 30.96% 26.31% Tangible equity ratio 6.40% 5.92% Nonperforming assets 196,575 74,815 162.75 % Accruing loans past due 90 days or more 64,516 20,407 216.15 % Nonperforming assets to net loans and leases and other real estate owned at period end 0.52% 0.22% (1) Amount consists of total deposits excluding time deposits $100,000 and over. (2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans. ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) (In thousands, except per share Three Months Ended and ratio data) September 30, June 30, March 31, 2007 2007 2007 EARNINGS Taxable-equivalent net interest income $483,115 $476,060 $463,721 Taxable-equivalent revenue 628,938 617,401 609,135 Net interest income 476,637 469,347 457,083 Noninterest income 145,823 141,341 145,414 Provision for loan losses 55,354 17,763 9,111 Noninterest expense 352,031 347,612 351,979 Income before income taxes and minority interest 215,075 245,313 241,407 Income taxes 71,853 86,065 88,854 Minority interest 7,490 34 (705) Net income 135,732 159,214 153,258 Net earnings applicable to common shareholders 131,962 155,607 149,655 PER COMMON SHARE Net earnings (diluted) 1.22 1.43 1.36 Dividends 0.43 0.43 0.39 Book value per common share 46.92 46.14 46.04 SELECTED RATIOS Return on average assets 1.10% 1.33% 1.31% Return on average common equity 10.50% 12.50% 12.25% Efficiency ratio 55.97% 56.30% 57.78% Net interest margin 4.44% 4.53% 4.51% ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) (In thousands, except per share and Three Months Ended ratio data) December 31, September 30, 2006 2006 EARNINGS Taxable-equivalent net interest income $465,267 $452,606 Taxable-equivalent revenue 605,148 597,935 Net interest income 459,039 446,511 Noninterest income 139,881 145,329 Provision for loan losses 26,675 14,363 Noninterest expense 342,926 330,028 Income before income taxes and minority interest 229,319 247,449 Income taxes 80,081 83,790 Minority interest 2,730 9,985 Net income 146,508 153,674 Net earnings applicable to common shareholders 142,673 153,674 PER COMMON SHARE Net earnings (diluted) 1.32 1.42 Dividends 0.39 0.36 Book value per common share 44.48 43.47 SELECTED RATIOS Return on average assets 1.27% 1.36% Return on average common equity 12.08% 13.41% Efficiency ratio 56.67% 55.19% Net interest margin 4.60% 4.58% ZIONS BANCORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Continued) (Unaudited) (In thousands, except share and Three Months Ended ratio data) September 30, June 30, March 31, 2007 2007 2007 AVERAGE BALANCES Total assets $48,903,319 $47,921,787 $47,478,985 Securities 5,221,722 5,426,896 5,797,856 Net loans and leases 37,194,850 36,142,957 35,406,094 Goodwill 2,015,532 2,012,270 1,983,765 Core deposit and other intangibles 177,864 188,843 194,124 Total deposits 35,756,600 35,964,203 35,181,504 Core deposits (1) 31,067,905 30,873,001 30,358,375 Minority interest 37,527 35,009 40,741 Shareholders' equity: Preferred equity 240,000 240,000 240,000 Common equity 4,987,275 4,993,383 4,954,400 Weighted average common and common- equivalent shares outstanding 107,879,963 109,123,735 110,106,637 AT PERIOD END Total assets $50,044,686 $48,691,445 $48,558,866 Securities 5,261,057 5,289,180 5,608,927 Net loans and leases 37,822,259 36,788,205 35,944,848 Sold loans being serviced (2) 2,022,142 2,201,897 2,401,355 Allowance for loan losses 418,165 380,295 371,213 Allowance for unfunded lending commitments 21,394 21,222 20,000 Goodwill 2,021,519 2,013,314 2,011,889 Core deposit and other intangibles 172,140 180,867 192,677 Total deposits 35,774,713 36,185,572 36,325,739 Core deposits (1) 31,239,069 31,303,578 31,238,791 Minority interest 37,411 32,094 38,691 Shareholders' equity: Preferred equity 240,000 240,000 240,000 Common equity 5,016,980 4,984,702 5,021,170 Common shares outstanding 106,934,360 108,034,079 109,052,149 Average equity to average assets 10.69% 10.92% 10.94% Common dividend payout 34.96% 29.88% 28.57% Tangible equity ratio 6.40% 6.52% 6.59% Nonperforming assets 196,575 95,398 82,524 Accruing loans past due 90 days or more 64,516 47,782 56,880 Nonperforming assets to net loans and leases and other real estate owned at period end 0.52% 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 FINANCIAL HIGHLIGHTS (Continued) (Unaudited) (In thousands, except share Three Months Ended and ratio data) December 31, September 30, 2006 2006 AVERAGE BALANCES Total assets $45,818,165 $44,680,382 Securities 5,627,906 5,605,249 Net loans and leases 34,059,617 33,105,716 Goodwill 1,895,860 1,881,708 Core deposit and other intangibles 168,547 175,259 Total deposits 33,853,608 32,964,029 Core deposits (1) 29,763,841 29,427,975 Minority interest 40,471 37,854 Shareholders' equity: Preferred equity 65,216 - Common equity 4,685,507 4,545,990 Weighted average common and common- equivalent shares outstanding 108,221,096 108,061,423 AT PERIOD END Total assets $46,970,226 $45,777,747 Securities 5,767,467 5,817,571 Net loans and leases 34,667,556 33,706,110 Sold loans being serviced (2) 2,586,451 2,796,644 Allowance for loan losses 365,150 356,342 Allowance for unfunded lending commitments 19,368 18,637 Goodwill 1,900,517 1,884,328 Core deposit and other intangibles 162,134 168,135 Total deposits 34,981,746 33,640,991 Core deposits (1) 30,679,690 30,027,827 Minority interest 42,791 41,158 Shareholders' equity: Preferred equity 240,000 - Common equity 4,747,023 4,643,166 Common shares outstanding 106,720,884 106,804,606 Average equity to average assets 10.37% 10.17% Common dividend payout 29.51% 25.00% Tangible equity ratio 6.51% 5.92% Nonperforming assets 81,994 74,815 Accruing loans past due 90 days or more 43,727 20,407 Nonperforming assets to net loans and leases and other real estate owned at period end 0.24% 0.22% (1) Amount consists of total deposits excluding time deposits $100,000 and over. (2) Amount represents the outstanding balance of loans sold and being serviced by the Company, excluding conforming first mortgage residential real estate loans. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, June 30, March 31, (In thousands, except share amounts) 2007 2007 2007 (Unaudited) (Unaudited) (Unaudited) ASSETS Cash and due from banks $1,481,238 $1,640,946 $1,574,519 Money market investments: Interest-bearing deposits and commercial paper 513,395 39,881 17,325 Federal funds sold 23,567 120,959 527,691 Security resell agreements 484,678 482,893 439,722 Investment securities: Held to maturity, at cost (approximate market value $686,026, $685,521, $663,474, $648,828 and $655,170) 695,842 702,189 667,269 Available for sale, at market 4,549,721 4,564,183 4,909,220 Trading account, at market (includes $22, $1,745, $1,095, $34,494 and $60,331 transferred as collateral under repurchase agreements) 15,494 22,808 32,438 5,261,057 5,289,180 5,608,927 Loans: Loans held for sale 200,653 226,041 266,880 Loans and leases 37,778,228 36,715,752 35,832,061 37,978,881 36,941,793 36,098,941 Less: Unearned income and fees, net of related costs 156,622 153,588 154,093 Allowance for loan losses 418,165 380,295 371,213 Loans and leases, net of allowance 37,404,094 36,407,910 35,573,635 Other noninterest-bearing investments 1,043,475 972,830 988,015 Premises and equipment, net 658,294 648,731 645,391 Goodwill 2,021,519 2,013,314 2,011,889 Core deposit and other intangibles 172,140 180,867 192,677 Other real estate owned 11,973 10,646 9,682 Other assets 969,256 883,288 969,393 $50,044,686 $48,691,445 $48,558,866 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $9,322,668 $9,857,638 $9,761,255 Interest-bearing: Savings and money market 14,811,615 14,712,294 15,003,091 Internet money market 1,707,544 1,544,031 1,464,535 Time under $100,000 2,599,595 2,535,881 2,485,720 Time $100,000 and over 4,535,644 4,881,994 5,086,948 Foreign 2,797,647 2,653,734 2,524,190 35,774,713 36,185,572 36,325,739 Securities sold, not yet purchased 21,036 28,456 190,878 Federal funds purchased 2,391,805 2,221,887 2,132,682 Security repurchase agreements 1,070,702 1,061,598 924,922 Other liabilities 560,853 602,173 662,589 Commercial paper 411,007 228,607 186,978 Federal Home Loan Bank advances and other borrowings: One year or less 2,037,644 664,509 323,598 Over one year 128,218 128,832 129,446 Long-term debt 2,354,317 2,313,015 2,382,173 Total liabilities 44,750,295 43,434,649 43,259,005 Minority interest 37,411 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 240,000 240,000 240,000 Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 106,934,360, 108,034,079, 109,052,149, 106,720,884 and 106,804,606 shares 2,200,228 2,279,722 2,381,509 Retained earnings 2,914,439 2,828,613 2,719,502 Accumulated other comprehensive loss (86,914) (112,840) (69,257) Deferred compensation (10,773) (10,793) (10,584) Total shareholders' equity 5,256,980 5,224,702 5,261,170 $50,044,686 $48,691,445 $48,558,866 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, September 30, (In thousands, except share amounts) 2006 2006 (Unaudited) ASSETS Cash and due from banks $1,938,810 $1,616,910 Money market investments: Interest-bearing deposits and commercial paper 43,203 39,882 Federal funds sold 55,658 72,036 Security resell agreements 270,415 272,643 Investment securities: Held to maturity, at cost (approximate market value $686,026, $685,521, $663,474, $648,828 and $655,170) 653,124 662,547 Available for sale, at market 5,050,907 5,062,409 Trading account, at market (includes $22, $1,745, $1,095, $34,494 and $60,331 transferred as collateral under repurchase agreements) 63,436 92,615 5,767,467 5,817,571 Loans: Loans held for sale 252,818 268,305 Loans and leases 34,566,118 33,583,499 34,818,936 33,851,804 Less: Unearned income and fees, net of related costs 151,380 145,694 Allowance for loan losses 365,150 356,342 Loans and leases, net of allowance 34,302,406 33,349,768 Other noninterest-bearing investments 1,022,383 1,005,989 Premises and equipment, net 609,472 587,807 Goodwill 1,900,517 1,884,328 Core deposit and other intangibles 162,134 168,135 Other real estate owned 9,250 9,986 Other assets 888,511 952,692 $46,970,226 $45,777,747 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $10,010,310 $9,750,064 Interest-bearing: Savings and money market 14,673,478 14,706,943 Internet money market 1,185,409 1,117,105 Time under $100,000 2,257,967 2,154,894 Time $100,000 and over 4,302,056 3,613,164 Foreign 2,552,526 2,298,821 34,981,746 33,640,991 Securities sold, not yet purchased 175,993 53,802 Federal funds purchased 1,993,483 2,286,561 Security repurchase agreements 934,057 1,108,771 Other liabilities 621,922 657,657 Commercial paper 220,507 265,769 Federal Home Loan Bank advances and other borrowings: One year or less 517,925 313,259 Over one year 137,058 132,854 Long-term debt 2,357,721 2,633,759 Total liabilities 41,940,412 41,093,423 Minority interest 42,791 41,158 Shareholders' equity: Capital stock: Preferred stock, without par value, authorized 3,000,000 shares: Series A (liquidation preference $1,000 per share); issued and outstanding 240,000 shares 240,000 - Common stock, without par value; authorized 350,000,000 shares; issued and outstanding 106,934,360, 108,034,079, 109,052,149, 106,720,884 and 106,804,606 shares 2,230,303 2,240,458 Retained earnings 2,602,189 2,501,625 Accumulated other comprehensive loss (75,849) (89,292) Deferred compensation (9,620) (9,625) Total shareholders' equity 4,987,023 4,643,166 $46,970,226 $45,777,747 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except Three Months Ended per share amounts) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 Interest income: Interest and fees on loans $724,598 $697,022 $674,577 $665,791 $638,610 Interest on loans held for sale 3,695 4,322 3,875 4,066 4,275 Lease financing 5,461 5,234 5,206 4,974 4,690 Interest on money market investments 10,841 7,756 6,342 6,116 6,241 Interest on securities: Held to maturity - taxable 2,343 2,064 2,203 2,220 2,217 Held to maturity - nontaxable 6,402 6,227 6,091 5,963 5,732 Available for sale - taxable 61,248 63,825 68,507 68,075 66,078 Available for sale - nontaxable 2,274 2,398 2,458 2,083 2,089 Trading account 880 766 1,192 2,009 1,621 Total interest income 817,742 789,614 770,451 761,297 731,553 Interest expense: Interest on savings and money market deposits 123,586 117,295 113,103 112,105 109,410 Interest on time and foreign deposits 119,781 120,445 112,885 102,025 86,635 Interest on short-term borrowings 59,034 43,369 48,692 45,504 46,778 Interest on long-term debt 38,704 39,158 38,688 42,624 42,219 Total interest expense 341,105 320,267 313,368 302,258 285,042 Net interest income 476,637 469,347 457,083 459,039 446,511 Provision for loan losses 55,354 17,763 9,111 26,675 14,363 Net interest income after provision for loan losses 421,283 451,584 447,972 432,364 432,148 Noninterest income: Service charges and fees on deposit accounts 46,919 45,116 43,385 41,628 40,478 Loan sales and servicing income 11,607 8,998 9,258 12,332 10,972 Other service charges, commissions and fees 51,623 49,911 45,153 45,645 45,025 Trust and wealth management income 9,040 9,125 8,216 8,057 7,147 Income from securities conduit 3,221 5,968 6,515 7,567 7,741 Dividends and other investment income 14,720 11,271 11,093 10,360 10,403 Trading and nonhedge derivative income (loss) (5,218) 5,224 5,200 4,991 3,641 Equity securities gains, net 11,072 100 5,198 5,875 13,180 Fixed income securities gains (losses), net 58 13 3,701 (554) 1,563 Other 2,781 5,615 7,695 3,980 5,179 Total noninterest income 145,823 141,341 145,414 139,881 145,329 Noninterest expense: Salaries and employee benefits 204,488 198,668 205,587 189,627 190,554 Occupancy, net 27,203 26,334 26,589 25,170 25,807 Furniture and equipment 23,996 24,272 23,267 22,623 20,361 Legal and professional services 10,918 11,242 9,537 11,234 11,386 Postage and supplies 10,024 9,025 8,047 8,402 8,313 Advertising 6,624 7,517 6,457 7,100 6,566 Debt extinguishment cost - - 89 7,261 - Merger related expense 682 1,491 2,406 2,199 2,549 Amortization of core deposit and other intangibles 11,495 11,812 11,129 10,899 10,716 Provision for unfunded lending commitments 172 1,222 306 731 1,045 Other 56,429 56,029 58,565 57,680 52,731 Total noninterest expense 352,031 347,612 351,979 342,926 330,028 Income before income taxes and minority interest 215,075 245,313 241,407 229,319 247,449 Income taxes 71,853 86,065 88,854 80,081 83,790 Minority interest 7,490 34 (705) 2,730 9,985 Net income 135,732 159,214 153,258 146,508 153,674 Preferred stock dividend 3,770 3,607 3,603 3,835 - Net earnings applicable to common shareholders $131,962 $155,607 $149,655 $142,673 $153,674 Weighted average common shares outstanding during the period: Basic shares 106,814 107,803 108,414 106,457 106,285 Diluted shares 107,880 109,124 110,107 108,221 108,061 Net earnings per common share: Basic $1.24 $1.44 $1.38 $1.34 $1.45 Diluted 1.22 1.43 1.36 1.32 1.42 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Continued) (Unaudited) Nine Months Ended (In thousands, except per share amounts) September 30, 2007 2006 Interest income: Interest and fees on loans $2,096,197 $1,772,533 Interest on loans held for sale 11,892 12,376 Lease financing 15,901 13,316 Interest on money market investments 24,939 18,598 Interest on securities: Held to maturity - taxable 6,610 6,641 Held to maturity - nontaxable 18,720 16,946 Available for sale - taxable 193,580 204,177 Available for sale - nontaxable 7,130 6,547 Trading account 2,838 5,690 Total interest income 2,377,807 2,056,824 Interest expense: Interest on savings and money market deposits 353,984 293,164 Interest on time and foreign deposits 353,111 213,544 Interest on short-term borrowings 151,095 118,831 Interest on long-term debt 116,550 125,600 Total interest expense 974,740 751,139 Net interest income 1,403,067 1,305,685 Provision for loan losses 82,228 45,897 Net interest income after provision for loan losses 1,320,839 1,259,788 Noninterest income: Service charges and fees on deposit accounts 135,420 119,146 Loan sales and servicing income 29,863 41,861 Other service charges, commissions and fees 146,687 126,122 Trust and wealth management income 26,381 21,913 Income from securities conduit 15,704 24,639 Dividends and other investment income 37,084 29,558 Trading and nonhedge derivative income 5,206 13,510 Equity securities gains, net 16,370 11,966 Fixed income securities gains, net 3,772 6,970 Other 16,091 15,643 Total noninterest income 432,578 411,328 Noninterest expense: Salaries and employee benefits 608,743 562,052 Occupancy, net 80,126 74,437 Furniture and equipment 71,535 66,102 Legal and professional services 31,697 28,900 Postage and supplies 27,096 24,674 Advertising 20,598 19,365 Debt extinguishment cost 89 - Impairment losses on long-lived assets - 1,304 Merger related expense 4,579 18,262 Amortization of core deposit and other intangibles 34,436 32,101 Provision for unfunded lending commitments 1,700 517 Other 171,023 159,797 Total noninterest expense 1,051,622 987,511 Income before income taxes and minority interest 701,795 683,605 Income taxes 246,772 237,869 Minority interest 6,819 9,119 Net income 448,204 436,617 Preferred stock dividend 10,980 - Net earnings applicable to common shareholders $437,224 $436,617 Weighted average common shares outstanding during the period: Basic shares 107,671 105,922 Diluted shares 109,059 107,950 Net earnings per common share: Basic $4.06 $4.12 Diluted 4.01 4.04 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except Preferred Common Retained per share amounts) stock stock earnings 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 448,204 Other comprehensive loss, net of tax: Net realized and unrealized holding losses on investments and retained interests Foreign currency translation Reclassification for net realized gains on investments recorded in operations Net unrealized gains on derivative instruments Other comprehensive loss Total comprehensive income Stock redeemed and retired (321,974) Net stock options exercised 66,795 Common stock issued in acquisition 206,075 Share-based compensation 19,029 Dividends declared on preferred stock (10,980) Cash dividends on common stock, $1.25 per share (135,382) Change in deferred compensation Balance, September 30, 2007 $240,000 $2,200,228 $2,914,439 Balance, December 31, 2005 $- $2,156,732 $2,179,885 Comprehensive income: Net income for the period 436,617 Other comprehensive loss, net of tax: Net realized and unrealized holding losses on investments and retained interests Foreign currency translation Reclassification for net realized gains on investments recorded in operations Net unrealized gains on derivative instruments Other comprehensive loss Total comprehensive income Stock redeemed and retired (1,439) Net stock options exercised 79,014 Reclassification of deferred compensation, adoption of SFAS 123R (11,111) Share-based compensation 17,262 Cash dividends on common stock, $1.08 per share (114,877) Change in deferred compensation Balance, September 30, 2006 $- $2,240,458 $2,501,625 Total comprehensive income for the three months ended September 30, 2007 and 2006 was $161,658 and $212,709, respectively. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Unaudited) Accumulated other Total (In thousands, except comprehensive Deferred shareholders' per share amounts) income (loss) compensation equity 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 448,204 Other comprehensive loss, net of tax: Net realized and unrealized holding losses on investments and retained interests (49,338) Foreign currency translation 12 Reclassification for net realized gains on investments recorded in operations (3,889) Net unrealized gains on derivative instruments 42,150 Other comprehensive loss (11,065) (11,065) Total comprehensive income 437,139 Stock redeemed and retired (321,974) Net stock options exercised 66,795 Common stock issued in acquisition 206,075 Share-based compensation 19,029 Dividends declared on preferred stock (10,980) Cash dividends on common stock, $1.25 per share (135,382) Change in deferred compensation (1,153) (1,153) Balance, September 30, 2007 $(86,914) $(10,773) $5,256,980 Balance, December 31, 2005 $(83,043) $(16,310) $4,237,264 Comprehensive income: Net income for the period 436,617 Other comprehensive loss, net of tax: Net realized and unrealized holding losses on investments and retained interests (11,134) Foreign currency translation 646 Reclassification for net realized gains on investments recorded in operations (2,424) Net unrealized gains on derivative instruments 6,663 Other comprehensive loss (6,249) (6,249) Total comprehensive income 430,368 Stock redeemed and retired (1,439) Net stock options exercised 79,014 Reclassification of deferred compensation, adoption of SFAS 123R 11,111 - Share-based compensation 17,262 Cash dividends on common stock, $1.08 per share (114,877) Change in deferred compensation (4,426) (4,426) Balance, September 30, 2006 $(89,292) $(9,625) $4,643,166 Total comprehensive income for the three months ended September 30, 2007 and 2006 was $161,658 and $212,709, respectively. ZIONS BANCORPORATION AND SUBSIDIARIES Nonperforming Assets (Unaudited) (In thousands) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 Nonaccrual loans $174,315 $82,314 $69,580 $66,405 $64,650 Restructured loans 10,287 2,438 132 164 179 Other real estate owned 11,973 10,646 9,682 9,250 9,986 Other assets - - 3,130 6,175 - Total $196,575 $95,398 $82,524 $81,994 $74,815 % of net loans and leases* and other real estate owned 0.52% 0.26% 0.23% 0.24% 0.22% Accruing loans past due 90 days or more $64,516 $47,782 $56,880 $43,727 $20,407 % of net loans and leases* 0.17% 0.13% 0.16% 0.13% 0.06% *Includes loans held for sale. Allowances for Credit Losses (Unaudited) (In thousands) Three Months Ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 Allowance for Loan Losses Balance at beginning of period $380,295 $371,213 $365,150 $356,342 $348,475 Allowance of company acquired 578 - 7,061 - - Add: Provision for losses 55,354 17,763 9,111 26,675 14,363 Deduct: Loan and lease charge-offs (20,815) (13,767) (14,079) (23,219) (10,882) Recoveries 2,753 5,086 3,970 5,352 4,386 Net loan and lease charge-offs (18,062) (8,681) (10,109) (17,867) (6,496) Balance at end of period $418,165 $380,295 $371,213 $365,150 $356,342 Ratio of allowance for loan losses to net loans and leases outstanding at period end 1.11% 1.03% 1.03% 1.05% 1.06% Ratio of allowance for loan losses to nonperforming loans at period end 226.52% 448.72% 532.50% 548.53% 549.66% Allowance for Unfunded Lending Commitments Balance at beginning of period $21,222 $20,000 $19,368 $18,637 $17,592 Allowance of company acquired - - 326 - - Provision charged against earnings 172 1,222 306 731 1,045 Balance at end of period $21,394 $21,222 $20,000 $19,368 $18,637 Total Allowances for Credit Losses Allowance for loan losses $418,165 $380,295 $371,213 $365,150 $356,342 Allowance for unfunded lending commitments 21,394 21,222 20,000 19,368 18,637 Total allowances for credit losses $439,559 $401,517 $391,213 $384,518 $374,979 Ratio of total allowances for credit losses to net loans and leases outstanding at period end 1.16% 1.09% 1.09% 1.11% 1.11% ZIONS BANCORPORATION AND SUBSIDIARIES Sold Loans Being Serviced (Unaudited) Three Months Ended (In thousands) September 30, June 30, March 31, 2007 2007 2007 Balance at beginning of period $2,201,897 $2,401,355 $2,586,451 New loans sold 8,162 19,173 10,931 Payments and other reductions (187,917) (218,631) (196,027) Balance at end of period $2,022,142 $2,201,897 $2,401,355 ZIONS BANCORPORATION AND SUBSIDIARIES Sold Loans Being Serviced (Unaudited) Three Months Ended (In thousands) December 31, September 30, 2006 2006 Balance at beginning of period $2,796,644 $3,003,101 New loans sold 30,061 46,073 Payments and other reductions (240,254) (252,530) Balance at end of period $2,586,451 $2,796,644 Loan Balances By Portfolio Type (Unaudited) (In millions) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2007 2007 2007 2006 2006 Loans held for sale $201 $226 $267 $253 $268 Commercial lending: Commercial and industrial 9,260 8,922 8,420 8,422 7,846 Leasing 474 450 447 443 420 Owner occupied 7,347 7,123 6,867 6,260 5,855 Total commercial lending 17,081 16,495 15,734 15,125 14,121 Commercial real estate: Construction and land development 8,396 8,037 7,739 7,483 7,362 Term 5,054 5,084 5,215 4,952 4,960 Total commercial real estate 13,450 13,121 12,954 12,435 12,322 Consumer: Home equity credit line and other consumer real estate 2,033 1,968 1,935 1,850 1,944 1-4 family residential 4,178 4,134 4,176 4,192 4,255 Bankcard and other revolving plans 299 306 289 295 281 Other 467 456 465 457 458 Total consumer 6,977 6,864 6,865 6,794 6,938 Foreign loans 27 12 3 3 3 Other receivables 243 224 276 209 200 Total loans $37,979 $36,942 $36,099 $34,819 $33,852 ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Three Months Ended September 30, 2007 (In thousands) Average Amount of Average balance interest (1) rate ASSETS Money market investments $784,286 $10,841 5.48% Securities: Held to maturity 701,587 12,192 6.89% Available for sale 4,462,480 64,746 5.76% Trading account 57,655 880 6.06% Total securities 5,221,722 77,818 5.91% Loans: Loans held for sale 235,345 3,695 6.23% Net loans and leases (2) 36,959,505 731,866 7.86% Total loans and leases 37,194,850 735,561 7.85% Total interest-earning assets 43,200,858 824,220 7.57% Cash and due from banks 1,421,895 Allowance for loan losses (390,078) Goodwill 2,015,532 Core deposit and other intangibles 177,864 Other assets 2,477,248 Total assets $48,903,319 LIABILITIES Interest-bearing deposits: Savings and NOW $4,337,513 9,942 0.91% Money market 10,466,124 93,156 3.53% Internet money market 1,619,423 20,488 5.02% Time under $100,000 2,577,033 28,831 4.44% Time $100,000 and over 4,688,695 57,710 4.88% Foreign 2,703,397 33,240 4.88% Total interest-bearing deposits 26,392,185 243,367 3.66% Borrowed funds: Securities sold, not yet purchased 20,673 252 4.84% Federal funds purchased and security repurchase agreements 3,350,693 40,123 4.75% Commercial paper 293,432 4,063 5.49% FHLB advances and other borrowings: One year or less 1,115,750 14,596 5.19% Over one year 128,534 1,862 5.75% Long-term debt 2,329,325 36,842 6.28% Total borrowed funds 7,238,407 97,738 5.36% Total interest-bearing liabilities 33,630,592 341,105 4.02% Noninterest-bearing deposits 9,364,415 Other liabilities 643,510 Total liabilities 43,638,517 Minority interest 37,527 Shareholders' equity: Preferred equity 240,000 Common equity 4,987,275 Total shareholders' equity 5,227,275 Total liabilities and shareholders' equity $48,903,319 Spread on average interest-bearing funds 3.55% Taxable-equivalent net interest income and net yield on interest-earning assets $483,115 4.44% (1) Taxable-equivalent rates used where applicable. (2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Three Months Ended June 30, 2007 (In thousands) Average Amount of Average balance interest (1) rate ASSETS Money market investments $581,814 $7,756 5.35% Securities: Held to maturity 666,283 11,644 7.01% Available for sale 4,707,154 67,514 5.75% Trading account 53,459 766 5.75% Total securities 5,426,896 79,924 5.91% Loans: Loans held for sale 254,693 4,322 6.81% Net loans and leases (2) 35,888,264 704,325 7.87% Total loans and leases 36,142,957 708,647 7.86% Total interest-earning assets 42,151,667 796,327 7.58% Cash and due from banks 1,494,407 Allowance for loan losses (375,388) Goodwill 2,012,270 Core deposit and other intangibles 188,843 Other assets 2,449,988 Total assets $47,921,787 LIABILITIES Interest-bearing deposits: Savings and NOW $4,511,110 10,179 0.91% Money market 10,245,788 88,578 3.47% Internet money market 1,484,748 18,538 5.01% Time under $100,000 2,518,631 27,382 4.36% Time $100,000 and over 5,091,202 61,864 4.87% Foreign 2,561,459 31,199 4.89% Total interest-bearing deposits 26,412,938 237,740 3.61% Borrowed funds: Securities sold, not yet purchased 18,426 227 4.94% Federal funds purchased and security repurchase agreements 2,962,417 35,378 4.79% Commercial paper 194,134 2,647 5.47% FHLB advances and other borrowings: One year or less 384,648 5,117 5.34% Over one year 129,147 1,853 5.75% Long-term debt 2,366,050 37,305 6.32% Total borrowed funds 6,054,822 82,527 5.47% Total interest-bearing liabilities 32,467,760 320,267 3.96% Noninterest-bearing deposits 9,551,265 Other liabilities 634,370 Total liabilities 42,653,395 Minority interest 35,009 Shareholders' equity: Preferred equity 240,000 Common equity 4,993,383 Total shareholders' equity 5,233,383 Total liabilities and shareholders' equity $47,921,787 Spread on average interest-bearing funds 3.62% Taxable-equivalent net interest income and net yield on interest-earning assets $476,060 4.53% (1) Taxable-equivalent rates used where applicable. (2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Nine Months Ended September 30, 2007 (In thousands) Average Amount of Average balance interest (1) rate ASSETS Money market investments $620,369 $24,939 5.37% Securities: Held to maturity 679,113 35,410 6.97% Available for sale 4,732,689 204,549 5.78% Trading account 68,245 2,838 5.56% Total securities 5,480,047 242,797 5.92% Loans: Loans held for sale 246,360 11,892 6.45% Net loans and leases (2) 36,008,159 2,118,008 7.86% Total loans and leases 36,254,519 2,129,900 7.85% Total interest-earning assets 42,354,935 2,397,636 7.57% Cash and due from banks 1,499,900 Allowance for loan losses (380,121) Goodwill 2,003,972 Core deposit and other intangibles 186,884 Other assets 2,476,001 Total assets $48,141,571 LIABILITIES Interest-bearing deposits: Savings and NOW $4,452,344 30,181 0.91% Money market 10,320,360 267,985 3.47% Internet money market 1,476,561 55,818 5.05% Time under $100,000 2,510,342 81,939 4.36% Time $100,000 and over 4,867,183 176,992 4.86% Foreign 2,570,641 94,180 4.90% Total interest-bearing deposits 26,197,431 707,095 3.61% Borrowed funds: Securities sold, not yet purchased 30,892 1,060 4.59% Federal funds purchased and security repurchase agreements 3,104,079 110,978 4.78% Commercial paper 222,523 9,075 5.45% FHLB advances and other borrowings: One year or less 759,780 29,982 5.28% Over one year 131,393 5,686 5.79% Long-term debt 2,356,434 110,864 6.29% Total borrowed funds 6,605,101 267,645 5.42% Total interest-bearing liabilities 32,802,532 974,740 3.97% Noninterest-bearing deposits 9,438,778 Other liabilities 644,041 Total liabilities 42,885,351 Minority interest 37,747 Shareholders' equity: Preferred equity 240,000 Common equity 4,978,473 Total shareholders' equity 5,218,473 Total liabilities and shareholders' equity $48,141,571 Spread on average interest-bearing funds 3.60% Taxable-equivalent net interest income and net yield on interest-earning assets $1,422,896 4.49% (1) Taxable-equivalent rates used where applicable. (2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans. ZIONS BANCORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (Unaudited) Nine Months Ended September 30, 2006 (In thousands) Average Amount of Average balance interest (1) rate ASSETS Money market investments $482,621 $18,598 5.15% Securities: Held to maturity 640,245 32,712 6.83% Available for sale 5,053,420 214,249 5.67% Trading account 156,288 5,690 4.87% Total securities 5,849,953 252,651 5.77% Loans: Loans held for sale 266,050 12,376 6.22% Net loans and leases (2) 31,568,460 1,791,205 7.59% Total loans and leases 31,834,510 1,803,581 7.57% Total interest-earning assets 38,167,084 2,074,830 7.27% Cash and due from banks 1,479,054 Allowance for loan losses (345,925) Goodwill 1,884,462 Core deposit and other intangibles 185,619 Other assets 2,340,239 Total assets $43,710,533 LIABILITIES Interest-bearing deposits: Savings and NOW $4,157,492 21,338 0.69% Money market 10,815,031 240,367 2.97% Internet money market 928,579 31,459 4.53% Time under $100,000 2,012,586 53,998 3.59% Time $100,000 and over 2,995,997 93,296 4.16% Foreign 1,964,021 66,250 4.51% Total interest-bearing deposits 22,873,706 506,708 2.96% Borrowed funds: Securities sold, not yet purchased 60,818 2,052 4.51% Federal funds purchased and security repurchase agreements 2,734,524 86,930 4.25% Commercial paper 215,100 8,217 5.11% FHLB advances and other borrowings: One year or less 550,737 21,632 5.25% Over one year 153,524 6,443 5.61% Long-term debt 2,479,316 119,157 6.43% Total borrowed funds 6,194,019 244,431 5.28% Total interest-bearing liabilities 29,067,725 751,139 3.45% Noninterest-bearing deposits 9,517,248 Other liabilities 665,822 Total liabilities 39,250,795 Minority interest 31,556 Shareholders' equity: Preferred equity - Common equity 4,428,182 Total shareholders' equity 4,428,182 Total liabilities and shareholders' equity $43,710,533 Spread on average interest-bearing funds 3.82% Taxable-equivalent net interest income and net yield on interest-earning assets $1,323,691 4.64% (1) Taxable-equivalent rates used where applicable. (2) Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.