exhibit_presentation.htm

EX-99.1 2 exhibit_presentation.htm BIENNIAL INVESTOR CONFERENCE PRESENTATION exhibit_presentation.htm

2010 Investor Day

February 11, 2010

Salt Lake City

Table of Contents

Ø Overview

Ø Geography & Footprint Economics

Ø Business Mix

Ø Customer Growth / Retention

Ø Net Interest Margin

Ø Credit Quality - Big Picture

Ø Efficiency

Ø Capital

Ø Shareholder Dilution

Ø Construction

Ø Residential

Ø Commercial

Ø National Real Estate: SBA 504 Program

Ø Term Commercial Real Estate

Ø Energy Portfolio

Ø Small Business Lending

Ø Investment Securities & Interest Rate Sensitivity

Ø Summary and Outlook

Introductory Overview

A Collection of Great Banks

Long-Term Growth Engine

Footprint Population Growth Estimates from SNL Financial (2009-2014)

Advantages of Multi-Bank Model

• Local Decisions

– Quick turnaround of lending decisions

– Customer access to decision-maker

– Relationship approach leads to strong business banking =
stronger DDA balances

– Breadth of products of a regional/super-regional bank

– Service levels of a community bank

– Pricing flexibility by market

• Superior Local Knowledge

– Avoid buying the business (thin spreads/ROEs)

– Avoid credit losses due to market or product inexperience

Strong Focus on Business Banking - Loan Mix, Profit Mix

Consumer

22%

CRE

32%

*Includes FDIC Supported Assets

* Commercial Loans: 79%

* Retail & Other Loans: 21%

Deposit Composition

• Retail: 45%

• Commercial: 55%

Zions’ Strengths

• Annual core pretax, pre-credit earnings range of $900 million to $950
million

– NIM: 3.81%, ranked #2 of regional banks/peers*

– Best among peers* for non-interest bearing deposits as a percent of earning assets

• Strong allowance for credit loss: 4.3% of loans

• Low original LTV ratios on term commercial real estate loans

• Successful bidder on four FDIC assisted transactions; paying agent
on two resolutions

• Markets with nation’s strongest long term growth profile

• Competitive operating cost structure

– Expense / Loan ratio: Best quartile

*Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Customer Retention and Growth - Total Commercial Customers up 18% (Organic)
Since 2007

Zions’ Challenges

• Rising NPAs, to 5.9% of loans from 5.4% in prior quarter (1)

– Total delinquent + NPA declined by 2% in 4Q09 compared to the prior quarter

• 2009 net charge-off rate of 2.9%; 4Q09 NCO rate: 3.0% (1)

• Continued securities impairments (OTTI), primarily on
bank/insurance CDOs - $99.3 million in 4Q

– Although OCI mark is already reflected in GAAP capital ratios, the difference
between Amortized Cost (OTTI mark) and Carrying Value (OCI mark) is $620
million, representing a potential earnings impairment

(1) Excludes FDIC supported assets

Net Interest Margin

Net Interest Margin (FY 2009)

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200
billion plus footprint competitors WFC and USB.

Source: SNL (As Reported NIM - field not available for FHN, BOKF)

Risk-adjusted Net Interest Margin* (FY 2009)

*(Net Interest Income - Net Charge-offs)/Average Earning Assets

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200
billion plus footprint competitors WFC and USB.

Source: SNL

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and less than $200
billion plus footprint competitors WFC and USB.

Source: SNL (As Reported NIM)

Net Interest Margin (Historical)

Weighted Average Spread
on new production is >4.5%

Core NIM Trends

Core NIM Performance

• Due to the
extinguishment/
reissuance of
subordinated debt in
June 2009, Zions
experiences non-cash
discount accretion,
which increases interest
expense, reducing GAAP
NIM

Core NIM (excludes discount accretion) has been generally stable

• 1Q09 experienced a temporary dip due to an intentional build-up of excess
liquidity during the significant turmoil during late 2008/early 2009.

• Issuance of senior notes in September 2009 had about 8 bps adverse impact
on the core NIM in 4Q09.

Driver of Strong NIM: DDA

Core NIM Performance

• Zions non-interest
bearing deposit growth
remains strong

• ZION: +27% Y/Y

• US commercial
banks: +3% Y/Y

DDA Growth - Indexed: 4Q08=100

Driver of Strong NIM: New Loan Spread and Deposit Costs

Credit Quality - Big Picture Overview

Loan Portfolio Performance (12/31/2009)

NPAs + Greater than 90 Days Delinquent / Loans + OREO

NPAs & Delinquency Trends
(Regional Bank Peers)

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

Net Charge-offs as % of Loans*
(Regional Bank Peers)

*Annualized

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

*The C&I Loans category excludes the impact of a significant credit, of which the
majority was recovered in 4Q09.

Net Charge Offs - By Loan Type (Regional Bank Peers)

Percentage of Zions
Total Loans

ALLL as a % of Loans

Source: SNL (ALLL as a % of Gross Loans)

Reserve Coverage of NCOs

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL

Zions’ Top 20 Non-Accrual Loans

Nonaccrual Loan Migration

- Nonaccrual loan inflows
have stabilized; expect
receding to begin in early
2010

- Favorable resolutions
increased 21% vs. 3Q09

- Unfavorable resolutions
declined 12% vs. 3Q09

Other Real Estate Owned (OREO) Migration

- OREO inflows stable

- Favorable resolutions
increased 108% vs. 3Q09

- Unfavorable resolutions
increased 34% vs. 3Q09

Top 20 Total Loans

Granularity of Loans - By Major Loan Type

Expense Control

Efficiency - Expense Management

*4Q09 Non-Interest Expense Annualized

Note: Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.

Source: SNL (estimated for reporting gaps where necessary)

Capital

Where We Are: Capital Ratios as of December 31, 2009

	4Q08	3Q09	4Q09
Tangible Common Equity	5.89%	5.76%	6.12%
Tier 1 Common	6.28%	6.59%	6.57%*
Tier 1 Risk Based	10.22%	10.34%	10.37%*
Total Risk Based	14.32%	13.08%	13.13%*

* 4Q09 ratios are estimates

Where We Are: Tier 1 + Reserves to Total Loans - 12/31/09*

* ZION estimated as of 4Q09; all peer data as of 3Q09 (4Q09 data not yet available at time of printing)

1Q - 2Q 08: No Capital Actions

3Q 08: $47mm 9.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock issued; $245mm common stock issued

4Q 08: $1.4 billion TARP

2Q 09: $100mm preferred repurchased; $54mm gain—preferred stock redemption; $124mm common stock issued ($46mm to fund preferred repurchase); $45mm
sub debt mod equity conversion option; $188mm gain—sub debt mod; $100mm gain—recognition of deferred gains on swaps; $14.5mm gain on Alliance
& Great Basin banks

3Q 09: $28mm sub debt to preferred conversion; $187mm common stock issued; $15.5mm reduction from amortization of gain on sub debt mod; $84.6mm gain
on Vineyard Bank

4Q 09: $71.5mm preferred stock exchanged for common, $36mm sub debt to preferred conversion; $153mm common stock issued, $39mm to common for
exchange; $32mm gain—equity conversion; $156mm restatement of Q2 sub debt mod equity conversion option; $16.9mm gain—restatement of Q2 sub
debt mod, $11mm gain—Q4 sub debt mod, $23.2mm reduction from amortization of gain on sub debt mod.

Net:
$292mm

Net:
$1.4 b

Net:
$426mm

Net:
$348mm

Total: $2.75b

Net:
$284mm

$ millions

2008 - 2009 Capital Actions Net to Tier 1

Capital Creation - Zions’ equity raises less dilutive to shareholders

Equity issuance	$709	$0	$986	$2,037	$0	$1,415	$1,136	$478	$571
Liability management	$603	$0	$467	$1,345	$10	$24	$520	$0	$30
Other strategic	$99	$18	$1,473	$176	$4	$0	$20	$0	$34

Source: Credit Suisse

Zions’ Approach to Capital

• Maintain and incrementally improve capital ratios

• Use all available “levers” to minimize dilution

– Common equity distribution programs

– Convertible instruments

• Modified sub debt converts to preferred (Tier 1)

– Reduce tangible assets (loan demand remains weak)

– Reduce risk-weightings of assets

– Preserve DTA - GAAP and RAAP

• Raise capital to repay TARP after credit
conditions and earnings outlook improve

– Cost of capital lower - common and preferred

Risks to Approach

• Regulatory/political pressure to take action not in
shareholders’ interest

• Not raising enough/markets deteriorate

Summary

• Zions is managing capital:

– For current shareholders

– To do enough to avoid unacceptable risks

Overview Q&A Session

Construction Loan Deep Dive
Reducing Risk: A Portfolio in Active Runoff Mode

David Blackford

Keith Maio

Dallas Haun

Scott McLean

Michael Morris

C&I

47%

Consumer

22%

CRE

32%

*Includes FDIC Supported Assets

For 4Q09, construction
loans accounted for

• 14% of the loan
portfolio

• 51% of FY09 NCOs

Construction Overview

Basic Construction Underwriting Guidelines

	Commercial Properties	Residential Properties
Loan Amount	Yes	Yes
Loan-to-Value	Yes	Yes
Cash Equity In?	Yes	Yes
Loan-to-Cost	Yes	Yes
Debt Service Coverage	Yes	N/A
Term	Yes	Yes
Preleasing	Yes	N/A
Market Analysis	Yes	Yes
Recourse/Guarantor	Yes	Yes
General Contractor	Yes	Yes

Construction loan overview - RESIDENTIAL Properties

• Total Residential Properties under Construction: $1.7 billion

Construction loan overview - COMMERCIAL Properties

• Total Commercial Properties under Construction: $3.8 billion

Construction loan overview - Granularity of Residential Portfolio

Construction loan overview - Granularity of Commercial Portfolio

Macroeconomic Data - Home Price Appreciation

Construction Credit Trends - Growth, NAL, NCO

Construction loan overview - Resi Growth, NAL, NCO Trends

Residential Construction

Construction loan overview - Commercial Growth, NAL, NCO Trends

Commercial Construction

Construction loan overview - Allowance for Credit Loss

• Zions holds a
significant reserve
against its
construction
portfolio

• Primarily based on
statistical loss
factors (as opposed
to specific reserves)

• Residential: 10.9%
of total residential
construction loans

• Commercial: 13.5%
of total commercial
construction loans

Construction Lending - Supplemental

Construction Lending

Supplemental
Information

Interest Reserves - Total Construction Portfolio

Interest reserves

• Common industry practice for
construction lending

• Only 19% of Zions’ construction
portfolio has an interest reserve

Interest Reserves - Split between Residential and Commercial Construction

Residential Construction - Vintage Stratification

Construction: Indexed Growth

Indexed Loan Growth: 4Q05=100

Construction Nonaccrual Loans and NCOs, by Affiliate

Construction
Performance

• Nevada loss content has
exceeded all other
geographies in 2009

• Losses relative to
defaults have run
considerably higher on
construction loans than
on other loan types

• Texas loss severity not
as bad as other states -
recent indications
suggest that demand is
rebounding at a healthy
level

Source: Call reports; NALs for CA exclude FDIC supported assets

Construction: Relative Concentration and Performance

Construction accounts for approximately
14% of total loans.

Relative to the consolidated total
construction loans,

– TX, AZ, and NV have a higher
concentration in Term CRE

– Concentrations in UT and CA are
significantly less than the overall
portfolio

Relative to the consolidated Term CRE
nonaccrual ratio,

– AZ and NV are experiencing
higher NALs due to significantly
harder hit A&D values

– CA (excluding loans covered by
the FDIC) is showing significantly
better nonaccruals, due in part to
early reduction in lending activity

Relative to the 4Q09 consolidated NCO
ratio,

– NV and AZ remain elevated,
accounting for approximately 1/2
of the quarterly construction
NCOs of the company

Construction Outlook

Outlook

• Impediments to growth

– Lack of qualified borrowers and/or good projects

– New internal concentration limits

– Lack of demand for new projects

• Growth opportunities

– Recognize: Zions is in markets where population growth is
likely to be strong

• Construction and development concentration will likely remain
above industry average, but far less than Zions’ historical levels

– Less A&D

– More focus on projects where cash flow certainty is stronger

National Real Estate Group /
SBA 504 Program

Peter Morgan

ZIONS NATIONAL REAL ESTATE

Peter J. Morgan, Executive Vice President

ZIONS NATIONAL REAL ESTATE

Executive Summary

Nationally:

• Small businesses in all industries experiencing different levels
of declining revenues, net income and cash flow

• Declining CRE values (30-50%). Given default, many small
businesses unable to sell building to satisfy debt

• FY’09 SBA 504 loan volume down 50% from FY’08

Zions National Real Estate Group:

• NPAs increased from $244M in June ‘09 to $380M at Dec. ’09

• 2009 Pre-tax, Pre-provision Income 2.2x net credit and OREO
losses.

• 2009 net charge-offs relatively low at 74 bps

• OREO holding period steady at 90-100 days

ZIONS NATIONAL REAL ESTATE

National Real Estate Dept.
Loan Portfolio
(Year-End Outstanding Loan Balance: $ Millions)

ZIONS NATIONAL REAL ESTATE

Changes & Challenges

• FL, AZ, NV, and GA have seen commercial
real property values decline 50-70% which
has contributed to higher net charge-offs

• 30+ day delinquency rate increased from
5.62% in June ’09 to 7.79% at Dec.’09

• Dec. ’09 non-accruals were $333M and
OREO was $46.6M or 6.4% and .90%
respectively, of $5.2B portfolio

ZIONS NATIONAL REAL ESTATE

Other Nat’l R. E. Dept Facts

a) At Jan 31, 2009; 36% of Zions Bank total
loans and 48.6% of Zions Bank NPAs

b) If a loan defaults, resulting in foreclosure,
the average principal loss is ±10%

c) 92% of borrowers continue to pay as agreed
with most recent 3 months delinquency rate
holding steady at 8%

ZIONS NATIONAL REAL ESTATE

Collateral Property Type
December 31, 2009

ZIONS NATIONAL REAL ESTATE

Owner-Occupied vs. CRE
December 31, 2009

ZIONS NATIONAL REAL ESTATE

National Real Estate Dept. NPAs
($ in Millions)

ZIONS NATIONAL REAL ESTATE

Loans by State
December 31, 2009

Portfolio

Non-accruals

ZIONS NATIONAL REAL ESTATE

Loans by State (cont.)
December 31, 2009

Portfolio

OREO

ZIONS NATIONAL REAL ESTATE

OREO Aging
December 31, 2009

Months:	#	$	%
0 to 3 months	34	$22.5	48.3%
3 to 6 months	22	$11.7	25.1%
6 to 9 months	12	$12.0	25.8%
9 to 12 months	0	$0.0	0.0%
12+ months	1	$0.4	0.8%
Total	69	$46.6	100.0%

ZIONS NATIONAL REAL ESTATE

2009 Net Credit Losses and
Losses on Sale of OREO

($ Millions)	Average Portfolio Balance 2009	Credit Losses	bps	Losses on OREO	bps
Owner-Occupied (C&I)	$3,307.1	$21.5	65.0	$11.9	36.0
Investor (CRE)	$1,990.9	$17.8	89.4	$3.8	19.1
Total	$5,298.0	$39.3	74.2	$15.7	29.6

ZIONS NATIONAL REAL ESTATE

Historical Delinquency

ZIONS NATIONAL REAL ESTATE

Delinquency Trends

ZIONS NATIONAL REAL ESTATE

NPA History by Cohort
Tracking Non-accruals by month first placed on non-accrual

ZIONS NATIONAL REAL ESTATE

• Get to Borrower quicker and determine best course of
action

• Created team(s) of experienced officers to craft solutions
for each borrower

• Waive prepayment penalties, consider short sales, and
explore note sales to investors, SBA, or junior lender(s)
when appropriate

• Start foreclosure process sooner, if necessary

• Utilize web based “auction platform” to sell OREO

#1 Objective: Reduce NPAs

ZIONS NATIONAL REAL ESTATE

Improvement Steps

• Established National CRE limits at 135% of risk based capital

• Set CRE property type and geographic limits which resulted in:

a) A current restriction on new hotel lending

b) No additional CRE lending, in CA, NV, AZ, as well as other regions
experiencing higher defaults with longer resolution times

• Curtailed maximum advance rates not to exceed 65% on any
property, with lower limits of 50% on special use properties

• All 10 BDOs to take an active role in geographic areas to visit
borrowers as needed, assist in note sales and OREO marketing

ZIONS NATIONAL REAL ESTATE

Outlook

2010:

• Selective portfolio growth until NPAs decrease to
acceptable level

• NPAs expected to rise modestly until mid-year, then
decline to < $375 million (7.2%) at year end

• Annualized net credit losses ≈ 150 bps

Longer Term:

• Significant growth opportunity in C&I lending

• Higher SBA loan and guarantee limits

• New refinancing rules for SBA 504 lending

Term Commercial Real Estate Loan
Deep Dive

Scott McLean

Michael Morris

David Blackford

Keith Maio

Term Commercial Real Estate - Location

• Term CRE, or non-owner
occupied loans account for
approximately 19% of total
loans, excluding FDIC
supported assets.

Geography of Term CRE

• Based on affiliate, Term CRE
loans are most significantly
concentrated in Utah and
California.

• Utah Term CRE includes a
significant amount of loans
within the National Real
Estate Group (NREG) - $1.9
billion, or more than 70% of
total.

• NREG loans are
predominately SBA 504
loans or otherwise have
a very low LTV at
origination

Term CRE - Category Stratification

Term CRE Credit Trends - EXCLUDING Gaming Credits

Term CRE Credit Trends - Effect of Gaming on Loss Rates

• Annualized 4Q09 NCOs Including Gaming: 3.1% annualized

• Annualized 4Q09 NCOs Excluding Gaming: 1.7% annualized

• Loss trends much more stable excluding gaming; gaming Term
CRE credits remaining: $74 million.

Change in CRE Loan Commitments in $billions (4Q07 to 4Q09)

• A significant decline
in construction
commitments has
been partially offset
by Term CRE loan
growth

• Construction loans
must qualify for
“pass grade”
underwriting in
order to move from
Construction to
Term CRE

ZION vs. SCAP More Adverse Stress Loss Projections

Term CRE -Vintage Stratification

Term CRE Maturity Stratification

Term CRE - LTV Stratification At Origination*

*Or most recent appraisal; reappraisals are most frequently
conducted when a loan is downgraded to substandard

Macroeconomic Data - MIT’s Transaction Based Index

100

Term CRE - TBI* Adjusted LTV Stratification

*The MIT Transaction Based Index is a national index that has
been applied to ZBC's mostly regional CRE Portfolio

101

Day of Reckoning - or Not?

• Eighty percent of the industry’s CRE loans
maturing in 2014 are projected to be underwater
(LTV >100%).

• Based on loans adjusted for price declines as
reflected in the 4Q09 MIT TBI, Zions would have
approximately 6% underwater.

• Loans Maturing in 2010 DO NOT include
approximately $92 MM of loans that have
matured, but are in workout

Source: American Banker, Foresight Analytics

102

Term CRE -
Supplemental Slides

103

Term CRE Loan Growth By Affiliate

• Growth of Term CRE in
the last three years has
come primarily from the
National Real Estate
Group (typically SBA 504
or 504-look-alike loans).

– ZFNB (including NREG)
growth was more than $1
billion, or approximately
45% of total franchise
growth

• Texas grew at the next
most strongest rate,
although a much smaller
segment of the
franchise.

• California grew at the
third fastest rate,
increasing by more than
$750 million (includes
FDIC transactions)

104

Term CRE Nonaccrual Loans and NCOs, by Affiliate (FY09)

Term CRE Performance

• Loss severity on Term CRE
typically runs at a fraction
of nonaccrual loans

• Nevada losses running
significantly higher due to
casino properties - $

• Remaining gaming/casino
portfolio: $169M, of which
$74M is Term CRE

• 4Q09 Term CRE NCOs, x-
gaming: 1.7% annualized

• FY09 Term CRE NCOs, x-
gaming: 1.7%

• Nevada losses were
approximately 39% of total
FY09 Term CRE losses,
excluding gaming.

Source: Call reports; NV NCO data excludes gaming credits, CA data excludes FDIC supported
credits

105

Term CRE Relative Performance - 4Q09

Term CRE accounts for approximately 18%
of total loans.

Relative to the consolidated total Term
CRE of 18%,

– UT and CA have slightly more
concentration in Term CRE

– TX, AZ, NV, and CO have a
significantly lower concentration

Relative to the consolidated Term CRE
nonaccrual ratio,

– NV is experiencing about five
points higher NALs due to gaming
credits

– UT and CA (excluding loans
covered by the FDIC) are
approximately in line

– All others are in line or below the
consolidated level

Relative to the 4Q09 consolidated NCO
ratio,

– Excluding gaming credits, there
were very few deviations on NCO
ratios in the fourth quarter

Source: Call reports; NV NCO data excludes gaming credits, CA data excludes FDIC supported
credits

106

CRE Portfolio Dollar Change from 4Q07 to 4Q09 (in $000s)

Collateral Location	Arizona	Northern California	Southern California	Nevada	Colorado	Texas	Utah/ Idaho	Washington	Other	Total
Commercial Term
Industrial	$28,178	$9,017	($19,155)	$16,416	($6,992)	$52,968	$21,475	$4,482	$38,314	$144,702
Office	$42,423	$59,366	$105,473	($2,661)	($51,947)	($356)	$9,907	$19,996	$47,793	$229,993
Retail	$48,874	$71,452	$169,731	$18,474	$50,260	$162,184	$33,397	$19,134	$184,868	$758,376
Hotel/Motel	$43,275	$66,383	$28,754	($28,609)	$10,651	$77,702	$57,512	$6,690	$139,545	$401,904
A&D	$0	$0	($6,523)	$0	$0	$0	$0	($6,821)	$1,201	($12,143)
Medical	$12,713	$27,683	$22,829	$61,204	$9,177	$10,251	$11,148	$748	($115)	$155,639
Recreation/Restaurant	$35,621	$7,972	$38,728	$31,056	$12,975	$16,678	$13,242	$1,948	$24,224	$182,443
Multifamily	$20,527	$1,808	$92,946	$15,540	$10,916	$98,902	$377	$6,661	($142)	$247,536
Other	($79,328)	($1,674)	($20,894)	($27,085)	($53,711)	($24,059)	$11,916	$594	($124,881)	($319,122)
Total Commercial Term	$152,283	$242,007	$411,889	$84,335	($18,671)	$394,270	$158,974	$53,432	$310,807	$1,789,328
Location as % Total - Term	-1.6%	1.8%	0.6%	-1.8%	-2.1%	2.4%	-0.3%	0.2%	0.7%	0.0%

Residential Construction
Single Family Housing	($831,434)	($176,910)	($454,878)	($175,285)	($76,088)	($316,963)	($363,907)	$16,022	($1,578)	($2,381,021)
Land Acquisition & Development	($509,338)	($83,291)	($192,851)	($162,307)	($52,826)	($155,846)	($143,901)	($21,091)	($38,723)	($1,360,175)
Total Residential Construction	($1,340,772)	($260,201)	($647,729)	($337,592)	($128,914)	($472,809)	($507,808)	($5,069)	($40,301)	($3,741,196)

Commercial Construction
Industrial	($54,579)	$495	($12,582)	($26,003)	($3,522)	($4,686)	$1,750	$2,000	($167)	($97,293)
Office	($93,491)	$10,451	($41,982)	($73,228)	$26,793	$78,769	($7,257)	($8,879)	($10,718)	($119,541)
Retail	($85,902)	$804	($64,386)	($133,215)	$16,319	($238,957)	($19,401)	($5,953)	($67,238)	($597,930)
Hotel/Motel	($33,955)	$21,623	$27,381	$5,904	$2,473	$46,221	($41,013)	$0	($5,483)	$23,150
A&D	($120,347)	($24,504)	$13,847	($184,231)	$27,392	($488,092)	$33,256	($9,035)	($16,983)	($768,700)
Medical	($12,700)	$0	($13,713)	($8,272)	($2,572)	($3,672)	($5,935)	$8,400	($10,448)	($48,912)
Recreation/Restaurant	($10,941)	$0	($11)	$2,188	$0	($161)	$576	$0	$0	($8,348)
Other	($67,380)	($4,150)	($40,234)	($41,897)	($2,840)	$35,408	($206)	($9,590)	($281,285)	($412,172)
Apartments	($89,574)	($12,785)	($52,475)	($9,402)	$4,322	$18,836	$15,491	($58,394)	($44,457)	($228,439)
Total Commercial Construction	($568,869)	($8,066)	($184,155)	($468,156)	$68,365	($556,334)	($22,739)	($81,451)	($436,779)	($2,258,185)
TOTAL CONSTRUCTION	($1,909,641)	($268,267)	($831,884)	($805,748)	($60,549)	($1,029,143)	($530,547)	($86,520)	($477,080)	($5,999,381)
Location as % Total - Construction	-9.2%	-0.9%	-2.1%	-1.6%	3.2%	8.4%	2.0%	0.3%	-0.1%	0.0%

Based on Total Loan Commitments

107

Term CRE - TBI* Adjusted LTV by Product & Location

*The MIT Transaction Based Index is a national index that has
been applied to ZBC's mostly regional CRE Portfolio

108

ZION vs. SCAP Baseline Stress Loss Projections

109

Term CRE Outlook

Outlook

• Impediments to growth

– Sluggish transaction volume

– Depressed prices

• Growth opportunities

– SBA 504

– Limited securitization market

• Key differentiator

– Local businesses need local decision makers for financing

110

Energy Loan Portfolio

Scott McLean

Steve Stephens

Energy Loan Portfolio

Energy Lending

E&P/Midstream Lending

Corporate Energy Services
Lending

§ Upstream:

E&P companies

§ Midstream:

Natural gas gathering systems

Gas gathering/pipeline companies

Gas processing plants

Petroleum storage terminals

§ Energy Services:

Field services

Equipment manufacturing

Drillers (working capital only)

§ Downstream:

Refiners (working capital only)

The Energy Lending Group

Steve Kennedy, P.E.

Senior Vice President

24 years

Gregory Petruska P.E.

Senior Vice President

29 years

E&P / Midstream

Lending - Houston

Charles W. Patterson

Senior Vice President

34 years

Corporate Energy
Services

Lending - Houston

C Ross Bartley

Senior Vice President

11 years

E&P / Midstream

Lending - Dallas

Terry McCarter

Senior Vice President

30 years

Buzz Gralla

Senior Advisor

40 years

E&P / Midstream

Lending - Denver

•28 Total Employees in the Energy Group

•19 in Houston, 7 in Dallas, & 2 in Denver

•Top 6 Officers average 28 years of experience

1998

1999

2000

2001

2002

2003

2004

2006

Commitments

Outstanding

Deposits

2005

($ in Millions)

2007

2008

2009

Includes Energy Service Commitments >$1MM bank wide

Energy Group Growth

Energy Portfolio Loan Composition

Outstanding

$1.75 Billion

Commitments

$3.3 Billion

E & P

Midstream

Services

Coal

Other

Refining

12/31/09

Includes Energy Service Commitments >$1MM bank wide

Energy Service Exposure by Market Segment

$1.7 Billion in Commitments

Selected Oilfield Service Relationships

Selected Exploration & Production Relationships

Commitments

$3.3 Billion

Outstanding

$1.75 Billion

12/31/09

Credit Quality - Total Energy Portfolio

Performing

Non Performing

Includes Energy Service Commitments >$1MM bank wide

Performing

Commitments

$1.6 Billion

Outstanding

$1.02 Billion

12/31/09

Credit Quality - E&P/Midstream Portfolio (1)

Performing

Non Performing

Performing

(1) Includes Other/Coal/Refining

E&P Underwriting

Typical Oil & Gas Reserve based loan

(75% producing reserves and 25% non-producing)

$100 - value using NYMEX oil and gas prices

$ 85 - Amegy risk-adjusted reserves (i.e. collateral value)

$ 68 - apply Amegy prices (80% of NYMEX)

$ 51 - loan value 75% adv. rate (25% of reserves hedged)

$ 41 - loan value 60% adv. rate (no hedging)

Note: Average utilization on facilities ~55%.

($ in Million’s)

Crude Oil Price Deck

Natural Gas Price Deck

124

($ per Barrel of Oil Equivalent)

Commitments

$1.7 Billion

Outstanding

$730 Million

12/31/09

Credit Quality - Energy Services Portfolio (1)

Performing

Non Performing

Performing

Includes Energy Service Commitments >$1MM bank wide

(1) Includes Other/Coal/Refining

U.S. Rig Count: A Driver of Service Demand

Services - Credit Quality Drivers

…all lessons learned from the 1980’s

• Dramatic decline in prices and industry capx.

• Excessive financial leverage in “up cycle” generally via junior debt.

• Term lending to companies directly tied to well site activity.

• Certain other subsegments just not appropriate for senior term
debt (seismic, rigs, etc.)

• Strong balance sheets and experienced sponsors a key.

• Amegy is one of only a few banks with an Energy Services
specialty.

What Drives Future Energy Demand?

Two main drivers:

DEVELOPED

1 billion people use 85%
of modern energy.

UNDER DEVELOPED

3 billion people use the
other 15%.

2 billion people aspire to
greater energy use.

Source: Simmons & Company International

A Sampling Of Energy Use

Source: Simmons & Company International

Richard Newell, SAIS, December 14, 2009

Annual Usage

quadrillion Btu

Coal

Liquid fuels

Natural gas

Projections

History

Nuclear

Liquid biofuels

Renewables (excluding liquid biofuels)

Source: Annual Energy Outlook 2010

Fossil fuels will continue as

the dominant source of energy

OPEC: The Only Source of Excess Oil Capacity

SCI 2009 Expectation = 15
-20% decline Y/Y

2008 Expected costs of
$350-375B

Development Costs

Exploration Costs

SCI Estimate Costs

WTI ($/bbl)

Upstream Spending to Decline in 2009/2010

Jeff Dietert jdietert@simmonsco-intl.com Houston: 1.713.546.7245

Source: CIBC World Markets and Gas Technology Institute

134

Gas Shale Plays: A New Dimension

Adding to Production…But, Shorter Life

U.S. Domestic Production Sensitivities

Richard Newell, SAIS, December 14, 2009

Import share of natural gas supply declines
as domestic supply grows

trillion cubic feet

Consumption

Domestic supply

Net imports

Projections

History

AEO2010 reference case

Updated AEO2009 reference case

13%

Source: Annual Energy Outlook 2010

Outlook

Amegy’s Energy Team

•Experienced Team

•Conservative Underwriting Standards

•Active use of Hedging

•Diversified Energy Portfolio

Industry Condition

•Consolidation has resulted in larger companies with stronger
balance sheets and access to multiple capital sources

Price Outlook

•Continued Price Volatility

•Increased Global Oil & Gas Demand

Amegy Bank of Texas

4400 Post Oak Parkway

Houston, TX 77027

End of Presentation

139

Small Business Lending / C&I
Loan Deep Dive

Scott Anderson

Bruce Alexander

Stanley Savage

Dallas Haun

140

Commercial & Industrial Loans - By Geography

Relative Size of Portfolio

• C&I loans account for
approximately 25% of total
loans, excluding FDIC
supported assets.

Geography of Term CRE

• Based on affiliate, C&I loans
are most significantly
concentrated in Texas and
Utah.

• $1.8 billion, or
approximately half of
Amegy’s C&I exposure
is within the energy
industry

141

Commercial & Industrial Average Loan Size and Distribution

142

Commercial & Industrial Trends - Growth, NAL, NCO

143

Commercial & Industrial Line Usage

144

C&I Outstanding Balance vs. Non Accrual Loans - NAICS

145

SBA 7(a) Lending

	Bank	FY 2009 # of Loans	FY 2009 Dollars	Average Loan Size
1	Superior Financial Group, LLC	2,690	$27,177,500	$10,103
2	Wells Fargo & Company	2,156	$678,221,500	$314,574
3	U.S. Bank	1,896	$261,602,982	$137,976
4	Zions Bancorporation	1,367	$138,153,300	$101,063
5	JPMorgan Chase & Co	1,250	$136,576,000	$109,261

Market Rankings:

• Arizona (NBA) - #6

• 23 loans / $7,039,000

• California (CB&T) - #5

• 152 loans / $24,754,700

• Colorado (VBC) - #5

• 55 loans / $12,314,300

• Idaho (ZFNB) - #1

• 165 loans / $15,520,500

• Nevada (NSB) - #4

• 23 loans / $3,894,100

• Oregon/Washington (Commerce)

• 14 loans / $3,251,600

• Texas (Amegy) - #7

• 64 loans / $11,937,800

• Utah (ZFNB) - #1

• 869 loans / $59,396,300

Source: U.S. Small Business Administration - Fiscal Year 2009

146

Small Business Banking:

National Awards:

• Overall Satisfaction

• Relationship Manager Performance

• Financial Stability

• Overall Treasury Management

Regional Awards:

• Overall Satisfaction - West

• Overall Satisfaction - Treasury Management -
West

What Others Say About Us

2009 Greenwich Excellence Awards

in Small Business and Middle Market Banking

Middle Market Banking

National Awards:

• Overall Satisfaction

• Personal Banking

• Relationship Manager Performance

• Credit Policy

• Financial Stability

• Overall Treasury Management

• Accuracy of Operations

• Customer Service

• Treasury Product Capabilities

Regional Awards:

• Overall Satisfaction - West

• Overall Satisfaction - Treasury Management - West

147

Frost

What Others Say About Us

Overall Financial Stability Compared to Willingness to Lend ($1 - $10 million)

Source: Greenwich Associates, Commercial Banking Study Q2 2009 ($1-$10 million)

148

What Others Say About Us

Overall Financial Stability Compared to Willingness to Lend ($10 - $500 million)

Source: Greenwich Associates, Commercial Banking Study Q2 2009 ($10-$500 million)

149

Zions Bank Treasury Management Core Strengths

• Sales and Service

– Aggressive sales culture resulting in very strong market share - near 50% in certain markets.

• Extensive training implemented in 2008 and 2009 at the local and corporate treasury levels

• A high percentage of the relationship managers are Treasury Management certified

– Strong retail merchant service fee income growth in 2009

– Cross-sell reporting in uncovers new revenue opportunities within our existing portfolio

– Strong executive management involvement with EVP visits to top clients annually.

– Speed of resolution on operational issues rated as one of the top bank’s in clients satisfaction by
Greenwich.

– Total treasury services billed is double the industry average for 2009 (source: Ernst &Young 26th
Annual Cash Management Services Survey 2009)

• Products

– NetDeposits solution for Web-based merchant credit card transactions which interfaces with clients
own website.

– Extensive history in Remote Capture and industry leader since 2004 with over 10,000 scanners
deployed nationwide.

– Successfully developed and deployed the Small Business Package that caters to smaller businesses
that need TM services and consolidates the pricing to one low fee.

– Solidified our front office/ back office partnership to deliver best in class solutions to the treasury
markets

150

C&I - Supplemental

Commercial & Industrial

Supplemental
Information

151

• The growth rate of C&I
loans in the last four years
was strongest in Texas

• Amegy grew by $2.0
billion to a peak of
$4.2 billion in 4Q08

• Colorado grew at the next
strongest rate, although a
much smaller segment of
the franchise

• Vectra grew by $230
million to a peak of
~$500 million in 4Q08

• California, the third largest
concentration of C&I
loans, grew at a more
moderate rate

• CB&T grew by ~$340
million, peaking at
$2.0 billion in 1Q09

Commercial & Industrial Loan Growth

152

C&I Nonaccrual Loans and NCOs, by Affiliate (FY09)

C&I Performance

• Loss severity on C&I
typically runs higher
than Term CRE or Owner
-Occupied

• The seven states shown
equaled 99% of FY09 C&I
NCOs

• Utah and Nevada losses
each accounted for 24%
of total FY09 C&I losses,
while CA accounted for
21%

153

C&I accounts for approximately 25% of
total loans.

Relative to the consolidated total C&I of
25%,

– TX and WA have significantly
more concentration in C&I

– Texas concentration is largely
attributable to its energy portfolio

Relative to the consolidated C&I
nonaccrual ratio,

– AZ, NV, WA, and CO are all
experiencing higher levels of
NALs

Relative to the 4Q09 consolidated NCO
ratio,

– AZ and WA were somewhat
higher, although WA performance
is strong relative to concentration.

– TX was slightly better than the
company weighted average,
which is strong given the high
concentration

C&I Relative Concentration & Performance - 4Q09

154

C&I Outlook

Outlook

• Impediments to growth

– Weakness in credit trends, adverse to lend to companies
whose fundamentals are not stabilizing

– Demand beginning to return, but slow

• Growth opportunities

– Expanded SBA 7(a) limits

• Key differentiator

– Local businesses need local decision makers for financing

155

Investment Securities and
Interest Rate Risk

David Hemingway

156

CDO Portfolio Summary

•Credit-related OTTI losses $99.3 million in 4Q09
(approximately 95% of the impairment losses had been
previously recognized in OCI)

•Noncredit-related losses on securities of $35.1 million in
4Q09 recognized in OCI

*This table includes $2.2 billion par value of CDOs that are
backed predominantly by bank trust preferred securities. The
par value of all Bank & Insurance backed CDOs is $2.7 billion

157

CDO Stress Testing

“Deterioration in PDs %” means that the default
curve applied to the performing collateral of
each deal is made worse by the percentage
indicated. Thus a deal with a default curve of
5% stressed to a 25% “Deterioration in PDs %”
would have a 6.25% defaults applied to it, a
deal with 20% would go 25% and so forth.
Thus a “Deterioration in PDs %” stress of 100%
would double the PD curve being applied to a
deal's collateral.

•Moderate Stress - The PD curve that was
applied to the performing collateral of each
CDO deal in the 4Q09 pricing run is increased
by the % indicated and the resultant values
were used to estimate OTTI losses.

•Adverse Stress - Incorporates all of the
deterioration of PDs applied to the performing
collateral, but also stresses the PDs applied to
collateral in deferral by the same deterioration
percentages. PDs on deferring collateral are
used to estimate the value of the potential for
this collateral to cure in the future through
recovery or re-performance.

•Extreme Stress - This is a very severe stress
scenario that uses the “Moderate Stress”
assumptions for performing collateral, but also
immediately defaults all deferring collateral
instantly with no recovery and no probability to
re-perform in the future.

158

History of Bank Deferrals & Defaults in Zions’ CDOs

159

History of Bank Deferrals & Defaults in Zions’ CDOs

160

161

50 Largest Aggregate Bank CDO Exposures (1 through 25)

Data as of 12-31-09

Among the top 50 bank
exposures, the average
cumulative 5 year default
probability being applied is:

•Performing Banks = 7.2%

•Deferring Banks = 38.7%

162

50 Largest Aggregate Bank CDO Exposures (26 through 50)

163

Asset Sensitivity

164

Asset Sensitivity

Fixed-rate loans:

– 27% of portfolio

– Duration of about 1 year

Variable-rate loans:

– 73% of portfolio

– Floors on 46% of variable-rate loans (79% of those loans are at the floor rate)

– Swaps: $760 million (Pay Floating, Receive Fixed)

• Continual reduction of interest rate swaps (increasing asset sensitivity)

165

Loans with Floors (as of 12/31/09)

166

Duration of Assets, Liabilities, and Equity

167

168

12-month simulated impact; assumes material demand deposit run-
off in rising rate scenarios

169

Outlook:
Zions Bancorporation
in 3-5 Years

Harris Simmons

170

Outlook: Zions Bancorporation in 3-5 Years

• Revenue drivers

– Macroeconomic advantage

• Western population growth profile continues to remain strong
relative to U.S.

– Spread Expansion

• Incremental loans have a NIM near 5.0%

• Higher capital levels within the industry likely to translate to
higher spreads

– Loan Portfolio Growth: Rebalancing in 2010-2011

• Construction loans peaked at approximately 24% of loans, now 14%

– Expect significant declines to continue as loans mature in 2010,
although some will move into the Term CRE portfolio

– Long term expected concentration: 11% +/- 2%

• Increase government-sponsored lending programs, e.g. SBA

171

Outlook: Zions Bancorporation in 3-5 Years (continued)

• Term CRE and Owner-Occupied CRE

– Growth trends more stable than construction and C&I

– Continued soft CMBS market provides opportunity

– Continued focus on SBA programs, tenants with more predictable cash flow

• Commercial & Industrial

– Zions is a relationship-based bank - avoid transaction-only customers

– Outstanding opportunity in small- and middle-market business loans

– Early evidence of stabilization in C&I loan balances beginning to emerge

172

• Consumer

– Residential prime and superprime jumbo mortgage

» Absence in the marketplace

» Capital friendly

» Low LTV, no gimmicks

– Credit cards

» Strong credit performance

» Good value proposition for customers - avoided teaser rates and
gimmicks

• Securities Portfolio

– Near term

• At the bottom of rate environment, avoiding long-term, fixed-rate securities

– Long term

• Moderately increase exposure to high quality and liquid investments

Outlook: Zions Bancorporation in 3-5 Years (continued)

173

Outlook: Zions Bancorporation in 3-5 Years (continued)

• Expense controls

– Strong expense controls

– Successful at bringing costs down to help offset the increase
in non-interest expense related to credit

– Expect significant improvement in credit related expenses
over the 3-5 year horizon

• Partially offset by increase in salary

• Fee income

– Trust and Contango

• Good platform, fits Zions’ customer profile

• Organic growth, with possible augmentation via acquisition

174

• Conclusion

– Natural growth likely due to footprint

– Near term portfolio rebalancing

– Strong spread expansion likely with maturing loans and new
customers

– Less nonperforming asset drag

– Credit costs (both provision and non-interest expense) likely
to experience significant improvement

Outlook: Zions Bancorporation in 3-5 Years (continued)

175

Outlook: Zions Bancorporation in 3-5 Years (continued)

176

Outlook: Zions Bancorporation in 3-5 Years (continued)

177

2010 Investor Day

February 11, 2010

Salt Lake City