ZIONS BANCORPORATION REPORTS EARNINGS OF $0.31 PER DILUTED COMMON SHARE FOR THIRD QUARTER 2008

Las Vegas, Nev.
October 16, 2008

Nevada State Bank's parent company, Zions Bancorporation (Nasdaq: ZION) ("Zions" or "the Company") today reported third quarter net earnings applicable to common shareholders of $33.4 million, or $0.31 per diluted common share, compared to $132.0 million or $1.22 per diluted common share for the third quarter of 2007. The return on average common equity was 2.59% compared to 10.50% for the third quarter of 2007.

Third Quarter 2008 Highlights

"This past quarter will be remembered as one that resulted in significant changes in the financial services industry, both in the United States and abroad," said Harris H. Simmons, chairman and chief executive officer. "While we are not immune to the problems of the industry, our core business remains remarkably strong and our balance sheet remains healthy. We strengthened our capital, built our loan loss reserves, and increased our liquidity during the quarter. We continue to be profitable and well-capitalized during a time when the industry has experienced severe financial stress."

Year-to-date net earnings applicable to common shareholders were $207.4 million, or $1.93 per diluted common share, compared to $437.2 million, or $4.01 per diluted common share for the same period in 2007. The return on average common equity for the first nine months of 2008 was 5.42% compared to 11.74% for the first nine months of 2007.

Loans
On-balance-sheet net loans and leases of $41.9 billion at September 30, 2008 were unchanged from the balance at June 30, 2008, and increased approximately $4.1 billion or 10.7% from $37.8 billion at September 30, 2007. The Company actively managed loan growth during the quarter in accordance with its stated desire to conserve capital and build capital ratios in the current uncertain economic environment. The growth of loan volumes in certain geographies, particularly Texas, was offset by declines in other markets.

Deposits
Average core deposits for the third quarter of 2008 increased $0.8 billion or 10.8% annualized to $33.2 billion compared to $32.4 billion for the second quarter of 2008, and increased $2.2 billion or 7.1% compared to $31.0 billion for the third quarter of 2007. Excluding the average balances of the Silver State Bank deposits, the increase for the third quarter of 2008 was $0.7 billion or 9.0% annualized compared to the second quarter of 2008. Average core deposit growth for the quarter was concentrated in money market accounts. Average total deposits for the third quarter of 2008 increased $0.5 billion to $37.3 billion or 6.0% annualized compared to $36.8 billion for the second quarter of 2008, and increased $1.5 billion or 4.4% compared to $35.8 billion for the third quarter of 2007. Excluding the average balances of the Silver State Bank deposits, the increase for the third quarter of 2008 was $0.4 billion or 4.3% annualized compared to the second quarter of 2008.

Net Interest Income
The net interest margin was 4.13% for the third quarter of 2008 compared to 4.18% for the second quarter of 2008 and 4.44% for the third quarter of 2007. The decreased net interest margin for the third quarter of 2008 was driven by higher average nonperforming assets, lower yields on loans, and increased money market rates. The effect of commercial paper purchased from Lockhart on the net interest margin was a reduction of approximately 5 basis points for the third quarter of 2008 and 9 basis points for the second quarter of 2008.

Net interest income for the third quarter of 2008 increased $7.3 million or 6.0% annualized to $492.0 million compared to $484.7 million for the second quarter of 2008, and increased $15.4 million or 3.2% compared to $476.6 million for the third quarter of 2007.

Asset Quality
Nonperforming assets were $924.4 million at September 30, 2008 compared to $697.4 million at June 30, 2008 and $196.6 million at September 30, 2007. This increase is being driven primarily by deterioration in residential real estate acquisition, development and construction exposures in the Southwest, and by continued weakening in Utah residential construction and commercial and industrial portfolios. The ratio of nonperforming assets to net loans and leases and other real estate owned was 2.20% at September 30, 2008 compared to 1.66% at June 30, 2008 and 0.52% at September 30, 2007.

Net loan and lease charge-offs for the third quarter of 2008 were $95.3 million or 0.91% annualized of average loans. This compares with $67.8 million or 0.67% annualized of average loans for the second quarter of 2008 and $18.1 million or 0.19% annualized of average loans for the third quarter of 2007. The increase in charge-offs largely was driven by declining collateral values on residential acquisition, development, and construction loans in the Southwest and in Utah.

The provision for loan losses was $156.6 million for the third quarter of 2008 compared to $114.2 million for the second quarter of 2008 and $55.4 million for the third quarter of 2007. The provision for the third quarter of 2008 was 1.49% annualized of average loans and was $61.3 million in excess of net loan and lease charge-offs.

The allowance for loan losses as a percentage of net loans and leases was 1.45% at September 30, 2008, 1.31% at June 30, 2008, and 1.11% at September 30, 2007. The allowance of $609.4 million at September 30, 2008 provided a coverage of 1.6 years on an annualized basis of net loan and lease charge-offs for the third quarter of 2008.

Investment Securities
The Company recognized other-than-temporary impairment ("OTTI") during the third quarter of 2008 of approximately $28.0 million pretax, or $0.16 per diluted share, compared to $38.8 million during the second quarter of 2008. OTTI during the third quarter of 2008 consisted of:

Net unrealized pretax losses recognized in accumulated other comprehensive income ("OCI") at September 30, 2008 were $248.5 million for held-to-maturity ("HTM") securities and $145.8 million for available-for-sale ("AFS") securities. This compares with $263.7 million and $91.6 million, respectively, at June 30, 2008. The decrease in the amount of unrealized losses in OCI for HTM securities resulted primarily from approximately $14 million pretax recognized as OTTI for the quarter. The net combined decrease in GAAP capital from the effects of the changes in these amounts and OTTI during the third quarter of 2008 was approximately $42 million.

Lockhart Funding
At September 30, 2008, the Company held approximately $557 million of asset-backed commercial paper purchased from Lockhart. This compares to $493 million at June 30, 2008 and $1,227 million at March 31, 2008. The amount of Lockhart commercial paper included in money market investments on the Company's average balance sheet was approximately $597 million for the third quarter of 2008, compared to $1,091 million for the second quarter of 2008 and $1,202 million for the first quarter of 2008.

Noninterest Income
Noninterest income for the third quarter of 2008 was $89.6 million compared to $72.4 million for the second quarter of 2008 and $145.8 million for the third quarter of 2007. The amount for the third quarter of 2008 includes impairment losses on securities of $28.0 million compared to $38.8 million for the second quarter of 2008. Fair value and nonhedge derivative loss was $(26.2) million during the quarter, primarily because of decreases in the fair value of nonhedge derivatives due to decreasing spreads between LIBOR and prime rates. Net equity securities gains for the quarter were $13.0 million, an increase of $21.1 million from the second quarter primarily because of $5.3 million of net gains on venture capital investments compared to losses of $8.2 million during the second quarter, and $7.6 million of net realized gains on certain of the Company's noninterest-bearing equity investments. Net of related minority interest of $3.8 million, income taxes and other expenses, the venture capital investments contributed approximately $0.8 million to net income for the quarter, or $0.01 per diluted common share, compared to decreasing net income for the second quarter of 2008 by $0.02 per diluted common share.

Noninterest Expense
Noninterest expense for the third quarter of 2008 was $372.3 million compared to $354.4 million for the second quarter of 2008 and $352.0 million for the third quarter of 2007. The increase to other noninterest expense during the third quarter included $5.8 million of other real estate owned expenses.

The efficiency ratio was 63.4% for the third quarter of 2008 compared to 63.0% for the second quarter of 2008 and 56.0% for the third quarter of 2007.

Capital Management
During September 8-10, 2008, the Company issued $250 million of new common stock consisting of 7,194,079 shares at an average price of $34.75 per share. Net of issuance costs and fees, this added $244.9 million to common equity. The registered sales took place through the previously announced ATM Equity Offering(SM) Sales Agreement with Merrill Lynch.

On July 2, 2008, the Company completed a $47 million offering of 9.50% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock. The offering was sold by Zions Direct, Inc., the Company's broker-dealer subsidiary.

Tangible equity increased by $291 million at September 30, 2008 compared to June 30, 2008. The Company's tangible equity ratio was 6.60% at September 30, 2008 compared to 5.97% at June 30, 2008 and 6.40% at September 30, 2007. The increase from the second quarter of 2008 is mainly due to the previously mentioned issuances of common and preferred stock. At September 30, 2008, estimated regulatory Tier 1 risk-based capital and total risk-based capital were $3,982 million and $6,073 million compared to $3,685 million and $5,732 million at June 30, 2008, respectively. Estimated ratios at September 30, 2008 for Tier 1 risk-based capital and total risk-based capital were 8.09% and 12.33% compared to 7.45% and 11.58% at June 30, 2008, respectively.

Weighted average common and common-equivalent shares outstanding for the third quarter of 2008 were 108,497,464 compared to 106,711,948 for the second quarter of 2008 and 107,879,963 for the third quarter of 2007. Common shares outstanding at September 30, 2008 were 115,302,598 compared to 107,518,975 at June 30, 2008 and 106,934,360 at September 30, 2007. The increase for the third quarter resulted from the common stock issuance previously discussed.

Acquisition
Effective September 5, 2008, the Company acquired from the FDIC the insured deposits and certain assets of Silver State Bank, headquartered in Henderson, Nevada. The acquisition was made through the Company's Nevada State Bank and National Bank of Arizona subsidiaries and included approximately $737 million of deposits and $67 million of assets.

Conference Call
Zions will host a conference call to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 16, 2008). Media representatives, analysts and the public are invited to listen to this discussion by calling 1-800-706-7741 (international: 617-614-3471) and entering the passcode 78345522, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation Web site at www.zionsbancorporation.com. A replay of the call will be available from 7:30 p.m. ET on Thursday, October 16, through midnight ET on Thursday, October 23, by dialing 1-888-286-8010 (international: 617-801-6888) and entering the passcode 36333463. 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 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 result 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 internationally, nationally or locally in areas in which the Company conducts its operations, including changes in asset-backed commercial paper markets and valuations in structured securities and other assets; changes in governmental policies and programs resulting from general economic and financial market conditions; changes in interest and funding 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 2007 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

Nevada State Bank, with assets of $4.0 billion, is the fourth largest commercial bank in Nevada.  Established in 1959, it is the oldest state-chartered bank in Nevada with a total of 72 branches statewide. Many of these branches are conveniently located in Smith's Food & Drug Stores, which are open on evenings and weekends. Nevada State Bank is a full-service bank offering a complete range of consumer and business services. For more information on Nevada State Bank, call 702.383.0009 or access www.nsbank.com.