 September 2009 Filed Pursuant to Rule 433 Registration Statement No. 333-158319 September 17, 2009 Free Writing Prospectus (To the Prospectus dated March 31, 2009) |
 Forward-Looking Statements This presentation contains statements that relate to the projected performance of
Zions Bancorporation and elements of or affecting such performance, including
statements with respect to the beliefs, plans, objectives, goals,
guidelines, expectations, anticipations and estimates of management.
These statements constitute forward-looking information within the
meaning of the Private Securities Litigation Reform Act. Actual facts,
determinations, results or achievements may differ materially from the statements provided in this presentation since such
statements involve significant known and unknown risks and uncertainties.
Factors that might cause such differences include, but are not limited
to: competitive pressures among financial institutions; economic,
market and business conditions, either nationally or locally in areas in
which Zions Bancorporation conducts its operations, being less favorable
than expected; changes in the interest rate environment reducing expected interest margins; changes in debt, equity and securities markets; adverse legislation or regulatory changes; and other factors
described in Zions Bancorporation’s most recent annual and quarterly
reports. In addition, the statements contained in this presentation
are based on facts and circumstances as understood by management of the
company on the date of this presentation, which may change in the
future. Zions Bancorporation disclaims any obligation to update any
statements or to publicly announce the result of any revisions to any of the
forward-looking statements included herein to reflect future events,
developments, determinations or understandings. |
 A
Collection of Great Banks Bank Headquarters Offices Assets Deposits Zions Bank Salt Lake City 128 $20.8B $16.2B CB&T San Diego 93 $10.7B $8.5B Amegy Houston 84 $11.7B $9.1B NBA Phoenix 76 $4.9B $4.0B NSB Las Vegas 59 $4.3B $3.7B Vectra Denver 39 $2.5B $2.0B Commerce-WA Seattle 1 $0.8B $0.6B Commerce-OR Portland 1 $0.06B $0.04B 2Q 2009 Average Balances |
 Zions’ Strengths • Annual pretax, pre-provision earnings of ~$950 mm-to- $1billion – NIM: 4.09%, ranked #2 of regional banks/peers. – One quarter of deposits are non-interest bearing (rank: #3 of peers) • Strong allowance for credit loss: 3.2% of loans • Tier 1 Common / Risk-weighted assets: $1.1 billion in excess of 4%. • Successfully won bids on four FDIC assisted transactions. *Peer group includes U.S. regional banks with assets greater than $20 billion and
less than $200 billion plus footprint competitors WFC and USB.
|
 Zions’ Challenges • Rising NPAs, to 4.7% of loans from 4.0% in prior quarter – Total delinquent + NPA was up 4%, decelerating sharply from the prior quarter rate • YTD net charge-off rate of 2.4% • Continued securities impairments (OTTI), primarily on bank/insurance CDOs - $42.0 million in 2Q |
 Our
Growth Engine #1 Ranking Among Regional & Western Banks Source: SNL Financial 7.6% 7.5% 7.2% 6.3% 6.1% 5.6% 5.1% 5.0% 4.3% 4.1% 3.3% 2.9% 2.8% 2.7% 2.6% 2.0% 1.5% 0.8% 9.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Footprint Population Growth Estimates from SNL Financial (2009-2014) |
 Net
Interest Margin (Regional Bank Peers) Reported NIM 2Q09 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 1Q09 to 2Q09 NIM Change (in bps) -25 -20 -15 -10 -5 0 5 10 15 20 25 30 Source: SNL 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.
|
 Asset
Sensitivity • Fixed-rate loans: – 25% of portfolio – Duration of about 1.1 years • Variable-rate loans: – 75% of portfolio – Continual reduction of interest rate swaps (increasing asset sensitivity) • 22% of total loans have floors that are in-the-money • Non-interest bearing deposits to earning assets is 22% (rank #1 among peers; peer median 16%) Peer data 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.
|
 Loan
Portfolio Composition (6/30/2009) 48% 33% 19% Owner Occupied Commercial 21% CRE Term 16% Other Consumer 8% Other 2% C& I 28% Consumer 1-4 Family 9% Residential Construction 7% Comm Construction 11% |
 CRE
Portfolio Change Summary (Dollar Change from 4Q07 to 2Q09 in billions)
$1.3 -$1.0 -$3.0 -$3.5 -$3.0 -$2.5 -$2.0 -$1.5 -$1.0 -$0.5 $0.0 $0.5 $1.0 $1.5 $2.0 Commercial Term Commercial Construction Residential Construction |
 Loan
Portfolio Performance (6/30/2009) YTD Net Charge-offs By Bank Vectra Bank Colorado 2% Zions First National Bank 28% Amegy Bank Of Texas 8% California Bank & Trust 11% National Bank of Arizona 20% Nevada State Bank 31% Total Loans by Bank California Bank & Trust, 21% National Bank of Arizona, 9% Nevada State Bank, 8% Vectra Bank Colorado, 5% Zions First National Bank, 35% Commerce Bank of Oregon, 0.1% Commerce Bank of Washington, 1.4% Amegy Bank Of Texas, 21% |
 Loan
Portfolio Performance (6/30/2009) YTD Net Charge-offs By Loan Category Commercial 29.6% Commercial Real Estate 55.4% Consumer 14.5% Other 0.4% |
 NPAs as a % of Total Assets (Large Bank Peers) Zions, 3.64% Peer (weighted average), 2.00% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Zions Peer (weighted average) Zions NPA/Asset ratio excludes FDIC-supported assets Note: Peer group defined as U.S. bank holding companies with assets > $10
billion. Peer data source: SNL Note: Zions’ ratio excludes FDIC-supported assets |
 Note:
Peer group defined as U.S. bank holding companies with assets > $10 billion. Peer data source: SNL Note: Zions’ ratio excludes FDIC-supported assets Delinquency Trends (Large Bank Peers) (90+ days Deliquent Still Accruing) / (Total Loans) ZION, 0.47% Peer (Weighted Avg), 1.90% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% ZION Peer (Weighted Avg) |
 NPAs & Delinquency Trends (Large Bank Peers) Note: Peer group defined as U.S. bank holding companies with assets > $10
billion. Peer data source: SNL Note: Zions’ ratio excludes FDIC-supported assets (NPAs + Greater Than 90 days Deliquent) / (Loans + OREO) Zions, 5.12% Peer (Weighted Avg), 6.25% 0.00% 0.40% 0.80% 1.20% 1.60% 2.00% 2.40% 2.80% 3.20% 3.60% 4.00% 4.40% 4.80% 5.20% 5.60% 6.00% 6.40% 6.80% Zions Peer (Weighted Avg) |
 Net
Charge-offs as % of Loans* (Large Bank Peers) Zions, 3.30% Peer (weighted average), 3.26% Zions w/o Flying J, 2.86% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Zions Peer (weighted average) Zions w/o Flying J *Annualized Note: Peer group defined as U.S. bank holding companies with assets > $10
billion. Peer data source: SNL; 2Q09 peer data estimated from SNL &
financial releases |
 Credit
Performance Summary Compared to Large Banks, Zions has • Relatively – Larger, secured commercial portfolio – Smaller, high performing consumer portfolio • Results in – Higher Non Performing Assets, but – Lower net charge-offs |
 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 Reserves & Net Charge Offs (Regional Bank Peers) Reserves/ TTM NCOs 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Zions Peer Median Reserves/NCOs Peer - Top Quartile Peer - Bottom Quartile |
 Bank
& Ins. Trup CDOs 3% of Assets Loans, 76% Bank & Ins. Trup CDOs, 3% All Other Investment Securities, 6% Investment Securities, 9% Other Assets, 16% |
 Capital
Ratios 11.58% 7.45% 5.51% 2Q08 12.87% 13.39% Total Risk Based 9.66% 9.43% Tier 1 Risk Based 5.66% 5.26% Tangible Common Equity 2Q09 1Q09 |
 Zions Bancorporation has filed a registration statement (Registration Statement No. 333-158319, including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus dated March 31, 2009 contained in that registration statement, the prospectus supplement dated September 17, 2009 and the preliminary prospectus supplement dated September 17, 2009 and other documents Zions Bancorporation has filed with the SEC for more complete information about Zions Bancorporation and this offering. You may get these documents and other documents Zions Bancorporation has filed for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Zions Bancorporation or a representative will arrange to send you the prospectus and other documents Zions Bancorporation has filed with the SEC if you request it by calling toll free (800) 524-8875. |