1. Using the ROE model to evaluate Zions Bancorporation'sprofitability in the first half of 2020 relative to its performance in 2019. In what significant ways does the bank'sprofitability differ from previous year?

2. Using the ROE model to discussZions Bancorporation'sperformance relative to peer group in the first six months of 2020 and 2019, respectively. You can find ratios of thepeer group in the bank's UBPR report.

UBPR report link: https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=122%2c116%2c120%2c114%2c107&rptid=283&idrssd=276579&peerGroupType=&supplemental=

The 2ndQuarter of 2020 financial statements of Zions Bancorporation are shown below.

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions 6 Months Ended 6 Months Ended Jun. 30, 2020 Jun. 30, 2019 Jun. 30, 2020 Jun. 30, 2019 Percentage of Total Percentage of Total Assets Assets Interest income: Interest and Fees and Loans $ 1,046 $ 1,151 1.37% 1. 64% Interest on Money Market Investments 17 0.01% 0.02% Interest on Securities 161 191 0.21% 0.27% Total interest income 1,216 1,359 1.59% 1.94% Interest expense: Interest on Deposits 74 123 0.10% 0.18% Interest on short- and long-term borrowings 31 91 0.04% 0.13% Total interest expense 105 214 0.14% 0.31% Net interest income 1,111 1,145 1.45% 1.63% Provision for loan losses 401 22 0.5.2% 0.03% Provision for unfunded lending commitments 25 3 0.03% 0.00% Total provision for credit losses 426 25 0.56% 0.04% Net interest income after provision for credit losses 685 1,120 0.90% 1.60% Noninterest Income Commercial account fees 61 60 0.08% 0.09% Card fees 39 46 0.05% 0.07% Retail and business banking fees 33 38 0.04% 0.05% Loan-related fees and income 53 35 0.07% 0.05% Capital markets and foreign exchange fees 42 35 0.05% 0.05% Wealth management and trust fees 31 28 0.04%% 0.04% Other customer-related fees 12 10 0.02% 0.01% Customer-related fees 271 252 0.35% 0.36% Fair value and nonhedge derivative loss (23) (8) -0.03%% -0.01% Dividends and other investment income 11 22 0.01% 0.03% Securities losses, net (9) (2) 0.01%% 0.00% Total noninterest income 250 264 0.33% 0.38% Noninterest expense: Salaries and employee benefits 540 562 0.71% 0.80% Occupancy, net 65 65 0.09% 0.09% Fumiture, equipment and software, net 64 67 0.08%% D. 10% Other real estate expense, net 0 (1) 0.00% 0.00% Credit-related expense 10 13 0.01% 0.02% Professional and legal services 22 23 0.03% 0.03% Advertising 6 11 0.01% 0.02% FDIC Premiums 12 12 0.02%% 0.02% Other 118 102 0.15% 0.15% Total noninterest expense 837 854 1.09% 1.22% Income before income taxes 98 530 0.13% 0.76%% Income taxes 18 119 0.02%% 0.17% Net income 411 0.10% 0.59%Consolidated Balance Sheets - USD ($) $ In Millions Jun. 30, 2020 Jun. 30, 2019 Jun. 30, 2020 Jun. 30, 2019 Percentage of Percentage of Total Assets Total Assets ASSETS Cash and due from banks $ 570 5 538 0.75% 0.77% Money market investments: Interest-bearing deposits 1,579 634 2.07% 0.90% Federal funds sold and security resell agreements 266 620 0.35% 0.88% Investment securities: Held-to-maturity, at amortized cost 688 $ 698 0.90% 1.00% Available-for-sale, at fair value 14,201 14,672 18.58%% 20.94% Trading account, at fair value 160 148 0.21% 0.21% Total securities 15,049 15,515 19.69% 22.14% Loans held for sale 105 105 0.14% 0.15% Loans held for investment, net of allowance Loans and leases, net of unearned income and fees 55,129 48,617 72.11% 69.39% Less allowance for loan losses 860 503 1.12% 0.72% Loans held for investment, net of allowance 54.269 18,114 70.99% 68.67% Other noninterest-bearing investments 813 1,056 1.06% 1.51% Premises, equipment and software, net 1,173 1,133 1.53% 1.62%% Goodwill and intangibles 1,014 1,014 1.33% 1.45% Other real estate owned 0.01% 0.01% Other assets 1,604 TEET 2.10% 1.90% Total Assets 76,447 70,065 100.00% 100.00% LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing demand 30,714 22,947 40.18% 32.75%% Interest-bearing: Savings and money market 31,307 26,470 40.95%% 37.78% Time deposits 3,663 1,915 4.79% 7.01% Total deposits 35,684 ZEE'S 85.92% 77.55% Federal funds purchased and other short-term borrowings 860 6,023 1.12% B.60% Long-term Debt 1,353 1,236 1.77% 1.76% Reserve for unfunded lending commitments 54 60 0.07% 0.09% Other liabilities 921 815 1.20% 1.16% Total liabilities 68,872 62,466 90.09% 89.15% Shareholders' equity: Preferred stock, without parvalue 566 566 0.74%% 0.81% Additional Paid-in Capital 2,675 3,271 3.50% 4.67% Retained earnings 3,979 3,737 5.20% 5.33% Accumulated other comprehensive income (loss) 355 25 0.46%% 0.04% Total shareholders' equity 7,575 7,599 9.91% 10.85% Total liabilities and shareholders' equity $ 76,447 $ 70,065 100.00% 100.00%