barclays london 4 30 updates cbh - snl6 may 2009 london barclays 2009 financial services conference...

5/1/2009

1

6 May 2009 ■ London

Barclays2009 Financial Services Conference

Forward-Looking StatementsThis 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 SecuritiesLitigation 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 Annual Report on Form 10-K for the year ended December 31, 2007. 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.

5/1/2009

2

Our Growth EnginePopulation Growth Estimates from US Census (2000-2030)

114% 108%

60% 56% 52% 51% 46%41% 37% 35% 29%

0%20%40%60%80%

100%120%

NV AZ TX UT ID ZION WA OR CA CO US

Growing 75% faster than the

national average

Our Growth Engine

#1 Ranking Among 40 Largest Banks

Source: SNL Financial

12.3%

10.0% 9.9%

8.3% 8.2% 7.8%6.9% 6.7% 6.5%

6.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

ZION STI

SNVW

BW

FC BBTBAC RF

NTRS

JPM

Footprint Population Growth Estimates from SNL Financial (2008-2013)

5/1/2009

3

A Collection of Great BanksBank Headquarters Offices Assets DepositsZions Bank Salt Lake City 128 $21.0B $16.4BCB&T San Diego 95 $10.6B $8.4BAmegy Houston 83 $12.3B $8.8BNBA Phoenix 76 $4.8B $3.9BNSB Las Vegas 54 $4.1B $3.5BVectra Denver 41 $2.6B $2.1BCommerce-WA Seattle 1 $0.8B $0.6BCommerce-OR Portland 1 $0.06B $0.04B

1Q 2009 Average Balances

Agenda

Outlook Summary

Key Drivers Going Forward–Securities Portfolio–Credit Quality–Net Interest Margin–Capital

Summary of Q1 2009

5/1/2009

4

($49)OTTI Impairment on Securities

$18OREO Expense$152Net Charge-offs$298Provisions For Credit Losses

$255Pretax income (ex provision, impairment and OREO exp)

($1.35)($200)Valuation Loss from Lockhart($5.55)($634)Goodwill Impairment($7.29)($832)Net Income To Common

$ Per ShareMillion

Q1 2009 Earnings Highlights

• Impairment losses of $354 million in 4Q08• Impairment losses of $634 million in 1Q09• Future impairments unlikely

Goodwill Impairments

5/1/2009

5

Lockhart Funding

• 1Q09 valuation losses of $181.7 million• Expect 2Q09 valuation losses of about $6 million• All remaining Lockhart assets will be consolidated to

Zions’ balance sheet 2Q09

Agenda

Outlook Summary


Summary of Q1 2009

5/1/2009

6

Bank & Ins. Trup CDOs 3% of Assets

Loans, 75%Bank & Ins. Trup

CDOs, 3%

All Other Investment Securities, 6%Investment

Securities, 9%

Other Assets, 16%

• Credit-related OTTI losses $49.0 million in Q109

• Noncredit-related OTTI on securities of $82.9 million in Q109 recognized in OCI

• Future OTTI losses likely stable to declining

Investment Securities Performance Q109

5/1/2009

7

• 3rd-party probabilities of default (PDs); cumulative bank failures assumed:Time Frame Failures PercentageActual to date 23 (Actual)Within 1 yr 115 11.5% of our universeWithin 5 yrs 181 18.1% of our universeWithin 30 yrs 270 26.9% of our universe

• The discount rates applied to the credit-adjusted CDO cash flows range from:Low LIBOR + 5%High LIBOR + 15.5%

Valuation Drivers for Bank Trup CDOs

Agenda

Outlook Summary


Summary of Q1 2009

5/1/2009

8

Performance in this Cycle• Avoided Major Industry Issues

– No subprime mortgage loans – Almost no MBS exposure – No high-LTV HELOCS – No FNMA/FHLMC Preferred Shares

• But…– Residential RE and consumer lot loans in the

Southwest– Missed correlation between CDO risk and

community bank real estate exposure– Not immune to broader impact of softening economy

Loan Portfolio Performance (3/31/20009)

Net Charge-offs By Bank

Vectra Bank Colorado

2%

Zions First National Bank28%

Amegy Bank Of Texas

7% California Bank & Trust12%

National Bank of Arizona

21%

Nevada State Bank30%

Total Loans by Bank

California Bank & Trust, 21%

National Bank of Arizona, 10%

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%

5/1/2009

9

Loan Portfolio Diversification(3/31/2009)

Owner Occupied Commercial

21%

CRE Term16%

Other Consumer8%

Other2%

C&I28%

Consumer 1-4 Family

9%

Residential Construction

7%

Comm Construction

11%

49%

34%

18%

Loan Portfolio Performance(Q1 2009)

Net Charge-offs By Loan Category

Commercial22.1%

Commercial Real Estate58.5%

Consumer18.9%

Other0.5%

5/1/2009

10

Note: Peer group defined as bank holding companies with assets >= $10 billion.

Peer data source: SNL.. COF, PNC, MTB, CNB, IBOC, DRL, and STT were excluded due to lack of NPA data in SNL Financial

Non Performing Assets as a % of Total Assets

3.05%

1.22%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

1Q-0

0

3Q-0

0

1Q-0

1

3Q-0

1

1Q-0

2

3Q-0

2

1Q-0

3

3Q-0

3

1Q-0

4

3Q-0

4

1Q-0

5

3Q-0

5

1Q-0

6

3Q-0

6

1Q-0

7

3Q-0

7

1Q-0

8

3Q-0

8

1Q-0

9

Zions Peer (weighted average)

Zions NPA/Asset ratio excludes FDIC-supported assets

Selected Peer Group 2008 Q4 ratios: Citi 0.8%, US Bancorp 1.43%, PNC 1.83%, JPM 1.84%, BofA 1.85%, Wells 2.61%Note: Peer group defined as U.S. bank holding companies with assets > $10 billion.Peer data source: SNL, data not available for Q1 2009

Zions Problem Loan Trends(90+ days Deliquent Still Accruing) / (Total Loans)

0.27%

1.50%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

2003

Q1

2003

Q2

2003

Q3

2003

Q4

2004

Q1

2004

Q2

2004

Q3

2004

Q4

2005

Q1

2005

Q2

2005

Q3

2005

Q4

2006

Q1

2006

Q2

2006

Q3

2006

Q4

2007

Q1

2007

Q2

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

ZION Peer (Weighted Avg)

5/1/2009

11

Zions Problem Loan Trends

Source: SNL (Peer data is top 50 publicly traded bank holding companies) Peer data not available for Q1 2009

(NPAs + Greater Than 90 days Deliquent) / (Loans + OREO)

0.00%

0.40%

0.80%

1.20%

1.60%

2.00%

2.40%

2.80%

3.20%

3.60%

4.00%

4.40%

2000

Q1

2000

Q2

2000

Q3

2000

Q4

2001

Q1

2001

Q2

2001

Q3

2001

Q4

2002

Q1

2002

Q2

2002

Q3

2002

Q4

2003

Q1

2003

Q2

2003

Q3

2003

Q4

2004

Q1

2004

Q2

2004

Q3

2004

Q4

2005

Q1

2005

Q2

2005

Q3

2005

Q4

2006

Q1

2006

Q2

2006

Q3

2006

Q4

2007

Q1

2007

Q2

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

Zions Peer (Weighted Avg)

Zions 4.23%

Peers 2.96%

Net Charge-offs as % of Average Total Loans (Annualized)

1.47%

2.39%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

1Q-0

0

3Q-0

0

1Q-0

1

3Q-0

1

1Q-0

2

3Q-0

2

1Q-0

3

3Q-0

3

1Q-0

4

3Q-0

4

1Q-0

5

3Q-0

5

1Q-0

6

3Q-0

6

1Q-0

7

3Q-0

7

1Q-0

8

3Q-0

8

1Q-0

9


Note: Peer group defined as bank holding companies with assets >= $10 billion. Peer Data: SNL.

Peer data source: SNL.. CNB, IBOC, and DRL excluded due to lack of NCO and average loan

data in SNL.

5/1/2009

12

Credit Performance Summary

• Relatively– Larger, secured commercial portfolio– Smaller, high performing consumer

portfolio• Results in

– Higher Non Performing Assets, but– Lower net charge-offs

Zions1.5

0

2

4

6

8

10

12

14

16

18

Q4-

00

Q1-

01

Q2-

01

Q3-

01

Q4-

01

Q1-

02

Q2-

02

Q3-

02

Q4-

02

Q1-

03

Q2-

03

Q3-

03

Q4-

03

Q1-

04

Q2-

04

Q3-

04

Q4-

04

Q1-

05

Q2-

05

Q3-

05

Q4-

05

Q1-

06

Q2-

06

Q3-

06

Q4-

06

Q1-

07

Q2-

07

Q3-

07

Q4-

07

Q1-

08

Q2-

08

Q3-

08

Q4-

08

Q1-

09


Peers 1.3

Reserves / Annualized Net Charge-offs (4 Quarter Moving Average)

Note: Peer group defined as bank holding companies with assets >= $10 billion. Peer Data: SNL.

Peer data source: SNL.. CNB, IBOC, and DRL excluded due to lack of NCO and average loan

data in SNL,

5/1/2009

13

15-30 Year Residential First Mortgage Loans

Total 30-Day+ Delinquency %

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Mar-02

Jun-02

Sep-02

Dec-02

Mar-03

Jun-03

Sep-03

Dec-03

Mar-04

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Total Outstanding: $2.5 billion (3/31/09)

Home Equity Credit Lines (HECL) OnlyTotal 30-Day+ Delinquency %

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Dec-00

Mar-01

Jun-0

1

Sep-01

Dec-01

Mar-02

Jun-0

2

Sep-02

Dec-02

Mar-03

Jun-0

3

Sep-03

Dec-03

Mar-04

Jun-0

4

Sep-04

Dec-04

Mar-05

Jun-0

5

Sep-05

Dec-05

Mar-06

Jun-0

6

Sep-06

Dec-06

Mar-07

Jun-0

7

Sep-07

Dec-07

Mar-08

Jun-0

8

Sep-08

Dec-08

Mar-09

Total Outstanding: $2.0 billion (3/31/09)*Weighted by balance

Average HECL FICO: 742*

5/1/2009

14

Commercial & Industrial LoansTotal 30-Day+ Delinquency %

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Dec-00

Mar-01

Jun-

01

Sep-01

Dec-01

Mar-02

Jun-

02

Sep-02

Dec-02

Mar-03

Jun-

03

Sep-03

Dec-03

Mar-04

Jun-

04

Sep-04

Dec-04

Mar-05

Jun-

05

Sep-05

Dec-05

Mar-06

Jun-

06

Sep-06

Dec-06

Mar-07

Jun-

07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Total Outstanding: $19.8 billion (3/31/09)

Commercial Real Estate3/31/2009

C&I27%

Owner Occ21%

Consumer 1-4 Family

9%Other2%

Other Consumer8%

CRE33%

NSB12.0%

NBA12%

AMEGY23%

CB&T21%

ZFNB26%

VBC4%

CBO0.03%

CBW1%

5/1/2009

15

Commercial Real Estate LoansTotal 30-Day+ Delinquency %

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0%11.0%12.0%13.0%14.0%15.0%16.0%17.0%18.0%19.0%20.0%21.0%22.0%

2007

-06

2007

-09

2007

-10

2007

-11

2007

-12

2008

-01

2008

-02

2008

-03

2008

-04

2008

-05

2008

-06

2008

-07

2008

-08

2008

-09

2008

-10

2008

-11

2008

-12

2009

-01

2009

-02

2009

-03

COML CONSTR COML TERM RES CONSTR CRE Total

Diversified CRE PortfolioLoans by Product Type and Location – 3/31/09

Collateral Location ArizonaNorthern California

Southern California Nevada Colorado Texas Utah/ Idaho

Washington/ Oregon Other

Product as % Total CRE

Product as % Loan Type

Commercial TermIndustrial 0.56% 0.62% 1.35% 0.18% 0.19% 0.37% 0.24% 0.14% 0.18% 3.83% 8.95%Office 1.27% 0.55% 1.88% 1.14% 0.67% 1.12% 1.27% 0.26% 1.30% 9.48% 22.15%Retail 0.96% 0.82% 1.83% 1.62% 0.55% 1.86% 0.36% 0.17% 0.85% 9.03% 21.09%Hotel/Motel 1.41% 0.80% 0.83% 0.58% 0.65% 0.95% 1.36% 0.16% 3.16% 9.90% 23.12%A&D 0.00% 0.03% 0.07% 0.00% 0.00% 0.00% 0.00% 0.05% 0.00% 0.15% 0.36%Medical 0.45% 0.20% 0.31% 0.51% 0.02% 0.09% 0.08% 0.01% 0.01% 1.68% 3.92%Recreation/Restaurant 0.40% 0.03% 0.23% 0.13% 0.08% 0.11% 0.13% 0.02% 0.21% 1.33% 3.12%Multifamily 0.43% 0.20% 1.64% 0.29% 0.25% 0.83% 0.42% 0.10% 0.44% 4.60% 10.74%Other 0.45% 0.16% 0.63% 0.42% 0.08% 0.09% 0.52% 0.05% 0.40% 2.81% 6.56%Total Commercial Term 5.92% 3.42% 8.76% 4.87% 2.50% 5.43% 4.37% 0.97% 6.56% 42.81% 100.00%

Residential ConstructionSingle Family Housing 1.21% 0.41% 1.23% 0.41% 1.08% 2.30% 1.85% 0.27% 0.54% 9.32% 44.50%Land Acquisition & Development 2.59% 0.41% 1.20% 0.93% 0.63% 3.12% 2.21% 0.13% 0.42% 11.62% 55.50%Total Residential Construction 3.80% 0.82% 2.43% 1.34% 1.71% 5.42% 4.06% 0.40% 0.97% 20.94% 100.00%

Commercial ConstructionIndustrial 0.32% 0.00% 0.42% 0.04% 0.02% 0.72% 0.04% 0.01% 0.01% 1.58% 4.37%Office 0.68% 0.02% 1.03% 1.01% 0.23% 1.09% 0.68% 0.08% 0.63% 5.44% 15.01%Retail 1.17% 0.05% 0.33% 1.23% 0.19% 4.11% 0.69% 0.02% 1.00% 8.79% 24.25%Hotel/Motel 0.19% 0.17% 0.23% 0.15% 0.03% 0.54% 0.04% 0.00% 0.09% 1.43% 3.94%A&D 1.34% 0.07% 0.49% 2.35% 0.38% 3.37% 1.13% 0.07% 0.50% 9.70% 26.77%Medical 0.18% 0.00% 0.13% 0.20% 0.07% 0.06% 0.07% 0.00% 0.29% 1.01% 2.78%Recreation/Restaurant 0.09% 0.00% 0.01% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.12% 0.33%Other 0.16% 0.00% 0.29% 0.14% 0.03% 0.18% 0.10% 0.01% 0.05% 0.97% 2.67%Apartments 0.73% 0.42% 0.72% 0.27% 0.19% 2.74% 0.21% 0.39% 1.53% 7.21% 19.88%Total Commercial Construction 4.87% 0.73% 3.64% 5.41% 1.14% 12.80% 2.97% 0.59% 4.11% 36.25% 100.00%

TOTAL CONSTRUCTION 8.67% 1.55% 6.07% 6.75% 2.85% 18.22% 7.03% 0.99% 5.07% 57.19% 100.00%

Location as % Total - Construction 14.59% 4.97% 14.83% 11.62% 5.35% 23.65% 11.40% 1.96% 11.63%

5/1/2009

1

Credit QualityOutlook

• Weakness in residential construction activity and land values in the Southwest expected to persist through 2009

• Credit problems spreading to other geographies and loan categories as economy weakens

• Continued elevated levels of NPAs, provisions and net losses

Agenda

Outlook Summary


Summary of Q1 2009

5/1/2009

2

4.18%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Capital O

ne

Wells Fargo

Zions

Popular

U.S. Ban

corp

Associated

BB&T Corp

Fifth Third

Synovus

BOK Financia

l

M&T Ban

k Corp PNC

Huntingto

n

Regions

Marsha

ll & Ils

ley

SunTrust

Comerica

Bank of A

merica

First H

orizon

Citigroup

JPMorg

an Chase

Colonial

New York Community

KeyCorp

Net Interest Margin

2008

Median: 3.31%

Asset-weighted average: 3.19%

3.36%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

Wells Fargo Zion

s

Associa

ted

BOK Financia

lPNC

BB&T Corp

U.S. Ban

corp

Capital O

ne

M&T Ban

k Corp

New York Community

Comerica

JPM Cha

se

Popula

r

Suntru

st

Citigroup

Synovus

Regions

Bank o

f America

Huntingto

n

First H

orizon

Fifth Thir

d

Marsha

ll & Ills

ley

Keycorp

Colonial

“Risk-adjusted” Net Interest Margin

2008

Median: 2.15%

Asset-weighted average: 2.27%

5/1/2009

3

Capital Ratios

11.68%7.57%6.17%5.70%4Q07

8.28%8.86%Tangible Equity

13.37%14.32%Total Risk Based9.43%10.22%Tier 1 Risk Based

5.26%5.89%Tangible Common Equity1Q094Q08

Tangible Common Equity Ratio(03/31/09)

5.26%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Comeri

ca

First H

orizo

n

BOK Financia

l

Marshall

& Ils

ley

Associa

ted

KeyCorp

NY Commun

ity

SunTru

st

Region

sZions

BB&T

M&T Ban

k

Capita

l One

Huntin

gton

Fifth Third JP

M

U.S. Ban

corp

PNC

Bank o

f Ameri

ca

Popular

Wells F

argo

Citigro

up

5/1/2009

4

Agenda

Outlook Summary


Summary of Q1 2009

Outlook Summary

• Continued elevated levels of credit losses and loss provisions in a weak economy

• Future OTTI losses, likely stable to declining

• Continued strong net interest margin• Reduced dividend and asset levels will

preserve strong capital positions

5/1/2009

5

Outlook Summary

Long-term outlook remains strong when economy begins to recover– Best long-term growth markets– Sustainable competitive advantage in

operating model– Superior risk-adjusted NIM through the

business cycle

Barclays2009 Financial Services Conference

6 May, 2009 London

barclays london 4 30 updates cbh - snl6 may 2009 london barclays 2009 financial services conference...

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