Zions Bancorporation Dep Shs Representing 1/40TH Perp Pfd Ser E (ZB-E) News

Zions Bancorporation, Dep Shares Non-Cumul Perp Preferred Stock, Series E
Ticker Symbol: ZB-E CUSIP: 989701875 Exchange: NYSE
Security Type: Traditional Preferred Stock

SECURITY DESCRIPTION: Zions Bancorporation, Depositary Shares each representing a 1/40 interest in a share of Series E Fixed-Rate Resettable Non-Cumulative Perpetual Preferred Stock, liquidation preference $25 per depositary share, redeemable at the issuer's option on 6/15/2012 and on every second anniversary thereafter at $25 per depositary share plus declared and unpaid dividends, and with no stated maturity. Initial distributions of 11% ($2.75) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which will be 3/1, 6/1, 9/1 & 12/1 respectively until the first Series E redemption date (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Following the first Series E Redemption Date, dividends will be payable at a rate per annum equal to 10.22% above the 2-Year Treasury Rate, which will be reset on such and each subsequent Series E Redemption Date which will be 6/15/2010 and on every second anniversary thereafter. The dividends are non-cumulative and if the board of directors does not declare a dividend or the company fails to pay a dividend declared by the board for any quarterly dividend period, the holder will not be entitled to receive any dividend for that quarterly period and the undeclared or unpaid dividend will not accumulate. Dividends paid by the preferred prior to 1/1/2011 are eligible for the 15% tax rate on dividends under normal holding restrictions and are also eligible for the dividends received deduction for corporate holders (see page S-32 of the prospectus for further information). In regard to the payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.

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