While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Revenues are expected to be $761.11 million, down 3.8% from the year-ago quarter. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ COMMISSION FILE NUMBER 001-12307 ZIONS BANCORPORATION, NATIONAL ASSOCIATION (Exact name of registrant as specified in its charter) United States ...

Financial Data and Key Metrics Changes - The company reported net earnings of $143 million for the quarter, with diluted earnings per share of $0.96, up $0.18 from the prior quarter [18][20] - Adjusted revenue decreased by 11% compared to the prior year and was stable versus the fourth quarter [26] - The common equity Tier 1 ratio improved to 10.4% from 10.3% in the previous quarter [19] Business Line Data and Key Metrics Changes - Net interest income improved slightly from the prior quarter as the repricing of earning assets outpaced rising funding costs [23] - Customer-related non-interest income was $151 million, slightly up from $150 million in the prior quarter, driven by higher capital markets fees [26] - Adjusted non-interest expense increased by $22 million to $511 million, largely due to seasonal increases in compensation [27] Market Data and Key Metrics Changes - Average loans increased by 1% in the current quarter, with loan demand and customer sentiment improving somewhat [28] - Customer deposit balances declined approximately 1% in the quarter due to seasonal outflows [18] - The loan-to-deposit ratio was 78%, with net charge-offs at just 4 basis points, down from 6 basis points in the prior quarter [19][35] Company Strategy and Development Direction - The company is focused on growing its customer base, particularly in small business lending, and has seen success with a streamlined SBA program [14] - The completion of the core deposit system migration is expected to enhance digital capabilities and improve customer service [10] - The company aims to grow fee income as a larger percentage of total revenue, with capital markets fees representing a key opportunity [15] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue growth remains a challenge, with adjusted revenue down 11% year-over-year, but expressed optimism about improving loan demand [13] - The company anticipates a positive trajectory for net interest margin and credit performance, which should enhance shareholder returns [17] - Management is confident in the adequacy of loan loss reserves, particularly in the commercial real estate portfolio, despite some credit deterioration indicators [48][49] Other Important Information - The company received 20 national excellence awards from Greenwich Associates, ranking third among U.S. banks [11] - The investment portfolio is expected to decline over the near term, providing a source of funds for the balance sheet [31] Q&A Session Summary Question: Can you dig into the NII guide and the assumptions regarding rate cuts? - Management indicated that the base expectation includes three rate cuts, but they are monitoring indicators suggesting fewer cuts may occur [40][41] Question: On the credit front, how confident are you in the adequacy of the loan loss reserve? - Management expressed confidence in the current level of reserves, noting that losses remain manageable and are supported by conservative underwriting practices [48][49] Question: Can you provide color on the increase in C&I classified loans? - The increase was attributed to specific credits experiencing slower lease-up and higher expenses, with no significant large-scale issues identified [86] Question: What are your expectations on further bringing down wholesale borrowing for this year? - Management expects to continue reducing wholesale borrowing, contingent on deposit growth and loan demand [68] Question: How do you see the mix of earning assets evolving? - The company anticipates continued attrition in the investment securities portfolio, with a focus on reinvesting in loans [72]

First Quarter 2024 Financial Review ZIONS BANCORPORATION April 22, 2024 Forward-Looking Statements; Use of Non-GAAP Financial Measures 2 Forward Looking Information This presentation includes "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties, and other factors t ...

Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 April 22, 2024 www.zionsbancorporation.com First Quarter 2024 Financial Results: FOR IMMEDIATE RELEASE Investor Contact: Shannon Drage (801) 844-8208 Media Contact: Rob Brough (801) 844-7979 Zions Bancorporation, N.A. reports: 1Q24 Net Earnings of $143 million, diluted EPS of $0.96 compared with 1Q23 Net Earnings of $198 million, diluted EPS of $1.33, and 4Q23 Net Earnings of $116 million, diluted EPS of $0.78 FIRST QUARTER RESULTS | $0.96 | ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Zions Bancorporation, N.A. is a $87 billion asset bank operating seven affiliate banks in the Western U.S., offering diverse services amid competition and regulation - Zions Bancorporation, N.A. is a bank with total assets of approximately **$87 billion** and net revenue of **$3.1 billion** in 2023, serving over **one million customers** through **407 branches** across **11 states**[17](index=17&type=chunk) - The Bank operates through seven separately managed affiliate banks, each with its own local branding and management team, supported by a centralized enterprise segment for governance, risk management, and technology[18](index=18&type=chunk) - Key business lines include commercial and small business banking, capital markets, commercial real estate lending, retail banking, and wealth management[20](index=20&type=chunk)[23](index=23&type=chunk) - The company faces intense competition from commercial banks, credit unions, fintechs, and private credit funds, differentiating itself through service quality, local knowledge, and customer relationships[22](index=22&type=chunk)[23](index=23&type=chunk) - In November 2023, the FDIC implemented a special assessment to recover costs from bank closures, with Zions recording an estimated impact of approximately **$90 million** for this assessment in Q4 2023[38](index=38&type=chunk)[190](index=190&type=chunk) Workforce Demographics (as of December 31, 2023) | Employee Roles | Women | People of Color | Disabled | Veterans | | :--- | :--- | :--- | :--- | :--- | | **Management** | 52% | 29% | 9% | 2% | | **Non-management** | 60% | 40% | 10% | 2% | | **All employees** | 58% | 38% | 10% | 2% | [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant credit, market, liquidity, strategic, operational, cybersecurity, capital, legal, and compliance risks - **Credit Risk:** The company has significant risk concentration in its loan portfolio, particularly in Commercial Real Estate (CRE), oil and gas lending, and leveraged loans, with the office CRE sector experiencing increased vacancy rates and declining property values[64](index=64&type=chunk)[65](index=65&type=chunk) - **Geographic Concentration Risk:** A substantial portion of the loan portfolio is concentrated in Utah, Idaho, Texas, and California, making the company's financial performance highly dependent on the economic conditions in these states[67](index=67&type=chunk) - **Liquidity Risk:** The company experienced deposit outflows as customers sought higher rates or moved funds, though deposit levels increased in the latter half of 2023, the cost of funds also rose significantly[72](index=72&type=chunk)[73](index=73&type=chunk) - **Strategic & Technology Risk:** The company faces competitive pressure from both traditional banks and non-traditional fintechs, and failure to develop and adopt new technologies, including AI and blockchain, could impede its market position[82](index=82&type=chunk) - **Cybersecurity Risk:** The company is subject to continuous and increasingly sophisticated cyber threats, acknowledging that while no past incidents have had a material impact, there is no assurance that future breaches will not occur or be adequately addressed[93](index=93&type=chunk)[95](index=95&type=chunk) - **Legal & Compliance Risk:** The company's corporate affairs are governed by the National Bank Act, which is less developed than state corporate laws, potentially hindering the ability to execute mergers and acquisitions as efficiently as competitors structured as bank holding companies[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [Item 1B. Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved written comments from SEC or OCC staff received 180 days or more before fiscal year-end - There are no unresolved written comments from SEC or OCC staff as of the reporting date[124](index=124&type=chunk) [Item 1C. Cybersecurity](index=24&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk is managed through a multi-layered approach involving the Board, ROC, and ERM framework, with no material incidents reported to date - Cybersecurity risk is overseen by the Board and managed through a three-lines-of-defense model, with the Risk Oversight Committee (ROC) reviewing and approving information security policies and programs[126](index=126&type=chunk)[127](index=127&type=chunk) - The Chief Information Security Officer (CISO) and Chief Technology and Operations Officer (CTOO) are the management positions directly responsible for assessing and managing cybersecurity risks[128](index=128&type=chunk) - As of December 31, 2023, management has assessed known cybersecurity incidents and determined that there have been no material incidents, individually or in aggregate[132](index=132&type=chunk) [Item 2. Properties](index=25&type=section&id=Item%202.%20Properties) As of December 31, 2023, the company operated **407 branches** (278 owned, 129 leased) and leases its Salt Lake City headquarters - The company operates **407 branches**, with **278 owned** and **129 leased** properties at year-end 2023[134](index=134&type=chunk) [Item 3. Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 16 of the Consolidated Financial Statements - Details on legal proceedings are provided in Note 16 of the financial statements[135](index=135&type=chunk) [Item 4. Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures are applicable - None[136](index=136&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ZION common stock trades on NASDAQ; the company repurchased shares, declared a **$0.41** dividend, and underperformed benchmarks - In February 2024, the Board declared a dividend of **$0.41 per common share**[140](index=140&type=chunk) - During Q1 2023, the company repurchased **0.9 million shares** for **$50 million**, with no shares repurchased in Q2, Q3, or Q4 2023[141](index=141&type=chunk) - In February 2024, the Board approved a new share repurchase plan for up to **$35 million**, under which the company subsequently repurchased **0.9 million shares** for **$35 million**[142](index=142&type=chunk) 2023 Share Repurchases | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | **First quarter** | 953,080 | $52.82 | | **Second quarter** | — | — | | **Third quarter** | — | — | | **Fourth quarter** | 18,851 | $45.59 | | **Total 2023** | 971,931 | $52.68 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Zions' 2023 financial performance was shaped by declining net interest income, deposit growth, increased credit loss provisions, and higher noninterest expenses - The company's financial performance in 2023 was marked by lower net interest income, loan growth, strong credit quality, higher noninterest expense, and an increased provision for credit losses[156](index=156&type=chunk) Selected Financial Highlights | (in millions, except per share) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Net interest income** | $2,438 | $2,520 | (3)% | | **Provision for credit losses** | $132 | $122 | 8% | | **Noninterest expense** | $2,097 | $1,878 | 12% | | **Net income** | $680 | $907 | (25)% | | **Net earnings applicable to common shareholders** | $648 | $878 | (26)% | | **Net earnings – diluted (per share)** | $4.35 | $5.79 | (25)% | | **Total assets (at year-end)** | $87,203 | $89,545 | (3)% | | **Total loans and leases (at year-end)** | $57,779 | $55,653 | 4% | | **Total deposits (at year-end)** | $74,961 | $71,652 | 5% | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) 2023 saw net interest income fall to **$2.44 billion**, net interest margin contract, credit loss provisions rise, and noninterest expense increase Net Interest Income and Net Interest Margin Analysis | (in millions, except rates) | 2023 | 2022 | | :--- | :--- | :--- | | **Net interest income** | $2,438 | $2,520 | | **Average interest-earning assets** | $81,984 | $83,638 | | **Yield on interest-earning assets** | 4.86% | 3.28% | | **Cost of total deposits** | 1.46% | 0.09% | | **Net interest margin** | 3.02% | 3.06% | - The provision for credit losses was **$132 million** in 2023, an increase from **$122 million** in 2022, with the Allowance for Credit Losses (ACL) growing to **$729 million**, or **1.26% of total loans**, up from **1.14%** in the prior year[179](index=179&type=chunk)[180](index=180&type=chunk) - Customer-related noninterest income increased by **$6 million (1%)**, driven by higher commercial account and wealth management fees, but partially offset by a **$7 million** decrease in retail banking fees due to changes in overdraft practices[189](index=189&type=chunk) - Noninterest expense increased by **$219 million (12%)**, primarily due to a **$119 million** rise in deposit insurance and regulatory expense, largely driven by a **$90 million** accrual for the FDIC special assessment[190](index=190&type=chunk) - The effective tax rate for 2023 was **23.3%**, an increase from **21.3%** in 2022, primarily due to higher non-deductible FDIC premium expenses and increased interest expense related to tax-exempt income[198](index=198&type=chunk) [Balance Sheet Analysis](index=46&type=section&id=Balance%20Sheet%20Analysis) Total assets decreased to **$87.2 billion**, loans grew to **$57.8 billion**, and deposits increased to **$75.0 billion** as of December 31, 2023 Loan and Lease Portfolio Composition (in millions) | Loan Category | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Commercial** | $30,588 | $30,495 | | **Commercial real estate** | $13,371 | $12,739 | | **Consumer** | $13,820 | $12,419 | | **Total loans and leases** | $57,779 | $55,653 | Deposit Portfolio Composition (in millions) | Deposit Type | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Noninterest-bearing demand** | $26,244 | $35,777 | | **Interest-bearing** | $48,717 | $35,875 | | **Total deposits** | $74,961 | $71,652 | | **Estimated uninsured deposits** | $33,184 (44%) | $38,063 (53%) | - The company is in the final phase of a project to replace its core loan and deposit banking systems, with total capitalized costs of **$293 million** as of December 31, 2023, and remaining system conversions expected in 2024[244](index=244&type=chunk)[245](index=245&type=chunk) [Risk Management](index=54&type=section&id=Risk%20Management) The company manages credit, interest rate, liquidity, and capital risks, noting increased criticized CRE loans, enhanced liquidity, and strong capital ratios - The Commercial Real Estate (CRE) loan portfolio grew to **$13.4 billion**, with the office CRE sub-portfolio, totaling **$2.0 billion**, seeing its criticized loan ratio increase to **11.9%** from **7.2%** and its ACL coverage ratio increase to **3.80%** from **1.36%**[264](index=264&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) - Nonperforming assets increased to **$228 million (0.39% of loans)** from **$149 million (0.27%)** at year-end 2022, primarily due to one large commercial loan and two suburban office CRE loans being placed on nonaccrual status[285](index=285&type=chunk) - The company updated its deposit models for interest rate risk management to reflect recent customer behavior, resulting in a higher assumed deposit beta and increased migration from noninterest-bearing to interest-bearing accounts[299](index=299&type=chunk) Available Liquidity (in billions) | | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Remaining borrowing capacity** | $38.4 | $19.1 | | **Cash and interest-bearing deposits** | $2.2 | $2.0 | | **Total available liquidity** | $40.6 | $21.1 | | **Ratio of available liquidity to uninsured deposits** | 122% | 56% | Regulatory Capital Ratios | Ratio | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Common equity Tier 1 capital** | 10.3% | 9.8% | | **Tier 1 risk-based** | 10.9% | 10.5% | | **Total risk-based** | 12.8% | 12.2% | | **Tier 1 leverage** | 8.3% | 7.7% | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are incorporated by reference from the "Interest Rate and Market Risk Management" section of the MD&A - Information regarding market risk is detailed in the MD&A section starting on page 63[388](index=388&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=81&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes management's and the auditor's reports on effective internal controls and audited consolidated financial statements with notes - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, based on the COSO 2013 framework[393](index=393&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, issued an unqualified opinion on both the consolidated financial statements and the effectiveness of internal control over financial reporting[396](index=396&type=chunk)[397](index=397&type=chunk)[403](index=403&type=chunk) - The critical audit matter identified by the auditor was the Allowance for Loan and Lease Losses (ALLL), due to the significant judgment involved in weighing economic scenarios and determining qualitative adjustments[407](index=407&type=chunk)[411](index=411&type=chunk) [Consolidated Financial Statements](index=86&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets of **$87.2 billion**, net loans of **$57.1 billion**, total deposits of **$75.0 billion**, and net income of **$680 million** for 2023 Consolidated Balance Sheet Highlights (in millions) | | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | $87,203 | $89,545 | | Loans, net of allowance | $57,095 | $55,078 | | Goodwill and intangibles | $1,059 | $1,065 | | **Total Liabilities** | $81,512 | $84,652 | | Total deposits | $74,961 | $71,652 | | **Total Shareholders' Equity** | $5,691 | $4,893 | Consolidated Statement of Income Highlights (in millions) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net interest income** | $2,438 | $2,520 | $2,208 | | **Provision for credit losses** | $132 | $122 | $(276) | | **Noninterest income** | $677 | $632 | $703 | | **Noninterest expense** | $2,097 | $1,878 | $1,741 | | **Net income** | $680 | $907 | $1,129 | [Notes to Consolidated Financial Statements](index=91&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies for fair value, investment securities, loans, derivatives, leases, goodwill, regulatory matters, and commitments - The Allowance for Credit Losses (ACL) methodology combines quantitative models based on historical loss experience under multiple economic scenarios with qualitative management adjustments[516](index=516&type=chunk)[520](index=520&type=chunk)[523](index=523&type=chunk) - In Q4 2022, the company transferred AFS securities with a fair value of **$10.7 billion** (**$13.1 billion** amortized cost) to the Held-to-Maturity (HTM) category, with **$2.4 billion** of associated unrealized losses in AOCI to be amortized over the life of the securities[500](index=500&type=chunk) - The company adopted ASU 2022-02 on January 1, 2023, eliminating accounting for Troubled Debt Restructurings (TDRs) and enhancing disclosures for loan modifications to borrowers experiencing financial difficulty, with **$264 million** of such loans modified during 2023[545](index=545&type=chunk)[547](index=547&type=chunk)[550](index=550&type=chunk) - The company uses derivative instruments, primarily interest rate swaps, to manage interest rate risk, with a total notional amount of **$6.5 billion** designated as hedging instruments as of December 31, 2023[566](index=566&type=chunk)[585](index=585&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=153&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - None[674](index=674&type=chunk) [Item 9A. Controls and Procedures](index=153&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 31, 2023, with no material changes in Q4 - The CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2023[675](index=675&type=chunk) [Item 9B. Other Information](index=154&type=section&id=Item%209B.%20Other%20Information) The company reports no directors or officers adopted, modified, or terminated Rule 10b5-1(c) trading arrangements in 2023 - No directors or officers adopted, modified, or terminated a Rule 10b5-1(c) trading arrangement in 2023[677](index=677&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=154&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[678](index=678&type=chunk) Part III [Item 10. Directors, Executive Officers, and Corporate Governance](index=154&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) This section is incorporated by reference from the company's subsequently filed Proxy Statement [Item 11. Executive Compensation](index=154&type=section&id=Item%2011.%20Executive%20Compensation) This section is incorporated by reference from the company's subsequently filed Proxy Statement [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=154&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details equity compensation plans, with **1.4 million** securities issuable and **2.7 million** available for future issuance under the 2022 Omnibus Incentive Plan Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Number of securities to be issued upon exercise | Weighted average exercise price | Number of securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | **Zions Bancorporation, N.A. 2022 Omnibus Incentive Plan** | 1,415,155 | $53.00 | 2,747,546 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=154&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) This section is incorporated by reference from the company's subsequently filed Proxy Statement [Item 14. Principal Accountant Fees and Services](index=155&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section is incorporated by reference from the company's subsequently filed Proxy Statement Part IV [Item 15. Exhibits and Financial Statement Schedules](index=155&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements filed under Item 8 and provides a comprehensive list of exhibits filed with the Form 10-K - This section lists all consolidated financial statements and exhibits filed with the Form 10-K[686](index=686&type=chunk)[687](index=687&type=chunk) [Item 16. Form 10-K Summary](index=160&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the filing - Not applicable[693](index=693&type=chunk)

Fourth Quarter 2023 Financial Review ZIONS BANCORPORATION January 22, 2024 Forward-Looking Statements; Use of Non-GAAP Financial Measures 2 Forward Looking Information This earnings release includes "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties, and other fa ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=4&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Zions Bancorporation's Q3 2023 saw diluted EPS and net interest income decline due to higher costs, despite deposit growth and improved liquidity | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Diluted EPS | $1.13 | $1.40 | | Net Interest Income | $585 million | $663 million | | Provision for Credit Losses | $41 million | $71 million | | Noninterest Expense | $496 million | $479 million | | Net Interest Margin (NIM) | 2.93% | 3.24% | - Key strategic actions during the first nine months of 2023 included **growing customer deposits**, **actively managing the balance sheet by shifting asset mix**, **increasing liquidity sources**, **managing interest rate risk through hedging**, **controlling expenses**, and **strengthening the regulatory capital position**[17](index=17&type=chunk) - Total customer deposits (excluding brokered deposits) **increased by $3.0 billion, or 5%**, from June 30, 2023, driven by a shift to interest-bearing products and expanded use of reciprocal placement products[23](index=23&type=chunk) - **Nonperforming assets increased to $219 million (0.38% of loans)** from **$151 million (0.28% of loans)** in the prior year quarter, primarily due to two suburban office commercial real estate loans in Southern California totaling **$46 million**[22](index=22&type=chunk) [Results of Operations](index=5&type=section&id=Results%20of%20Operations) Q3 2023 net interest income decreased 12% to $585 million due to higher funding costs, impacting the efficiency ratio Q3 2023 vs Q3 2022 Income Statement Highlights | Metric | Q3 2023 (Millions) | Q3 2022 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $585 | $663 | (12)% | | Provision for Credit Losses | $41 | $71 | (42)% | | Noninterest Income | $180 | $165 | 9% | | Noninterest Expense | $496 | $479 | 4% | | Net Earnings Applicable to Common | $168 | $211 | (20)% | - The efficiency ratio **increased to 64.4% from 57.6%** in the prior year quarter, primarily due to a decline in adjusted taxable-equivalent revenue[20](index=20&type=chunk)[63](index=63&type=chunk) [Balance Sheet Analysis](index=19&type=section&id=BALANCE%20SHEET%20ANALYSIS) Total assets were $87.3 billion, with loans growing to $56.9 billion and deposits increasing to $75.4 billion, shifting to interest-bearing Balance Sheet Highlights (Sept 30, 2023 vs Dec 31, 2022) | Metric | Sept 30, 2023 (Billions) | Dec 31, 2022 (Billions) | | :--- | :--- | :--- | | Total Assets | $87.3 | $89.5 | | Total Loans and Leases | $56.9 | $55.7 | | Total Deposits | $75.4 | $71.7 | | Shareholders' Equity | $5.3 | $4.9 | - Total deposits **increased by $3.7 billion (5%)** from December 31, 2022, marked by a shift from noninterest-bearing demand deposits (**down to 35.5% of total**) to interest-bearing deposits[95](index=95&type=chunk) - Estimated uninsured deposits were **$31.2 billion**, representing **41% of total deposits**, a **decrease from 53%** at the end of 2022[97](index=97&type=chunk) [Risk Management](index=23&type=section&id=RISK%20MANAGEMENT) The bank manages credit, market, and liquidity risks, reducing CRE concentration, increasing ACL, and maintaining robust liquidity coverage - The bank actively manages credit risk by diversifying its loan portfolio and has reduced its Commercial Real Estate (CRE) loan concentration to **23% of total loans**, **down from 33%** in late 2008[100](index=100&type=chunk) - Total available liquidity was **$43.6 billion** at September 30, 2023, which is **140%** of the **$31.2 billion** in estimated uninsured deposits, a significant **increase from 56% coverage** at year-end 2022[169](index=169&type=chunk)[97](index=97&type=chunk) - The Allowance for Credit Losses (ACL) to total loans ratio **increased to 1.30%** at September 30, 2023, **up from 1.14%** at year-end 2022, primarily due to deterioration in economic forecasts[130](index=130&type=chunk) [Capital Management](index=40&type=section&id=Capital%20Management) The bank maintained strong capital, with CET1 at 10.2%, increased shareholders' equity, paused share repurchases, and is evaluating Basel III Regulatory Capital Ratios | Ratio | Sept 30, 2023 (%) | Dec 31, 2022 (%) | Well-Capitalized Minimum (%) | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 10.2% | 9.8% | 6.5% | | Tier 1 Risk-Based | 10.9% | 10.5% | 8.0% | | Total Risk-Based | 12.8% | 12.2% | 10.0% | | Tier 1 Leverage | 8.3% | 7.7% | 5.0% | - **Share repurchases were paused** during the second and third quarters of 2023, and are not expected in the fourth quarter, due to the uncertain macroeconomic environment[174](index=174&type=chunk) - The bank is evaluating the potential impact of the proposed **Basel III \"Endgame\" rules**, as it expects to become subject to them in the next few years if total assets grow to **$100 billion or more**[183](index=183&type=chunk) [Financial Statements (Unaudited)](index=45&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Unaudited consolidated financial statements for Q3 2023 detail the company's financial position, operational results, and cash flows [Consolidated Balance Sheets](index=45&type=section&id=Consolidated%20Balance%20Sheets) As of Sept 30, 2023, total assets were $87.3 billion, with loans at $56.2 billion, deposits at $75.4 billion, and equity at $5.3 billion Consolidated Balance Sheet Data (in millions) | Account | Sept 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$87,269** | **$89,545** | | Total Investment Securities | $20,738 | $23,506 | | Loans Held for Investment, Net | $56,212 | $55,078 | | **Total Liabilities** | **$81,954** | **$84,652** | | Total Deposits | $75,399 | $71,652 | | Federal Funds & Short-Term Borrowings | $4,346 | $10,417 | | **Total Shareholders' Equity** | **$5,315** | **$4,893** | [Consolidated Statements of Income](index=46&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2023 net interest income was $585 million, resulting in net income of $175 million and diluted EPS of $1.13 Income Statement Summary (in millions, except EPS) | Metric | Three Months Ended Sept 30, 2023 | Three Months Ended Sept 30, 2022 | | :--- | :--- | :--- | | Net Interest Income | $585 | $663 | | Provision for Credit Losses | $41 | $71 | | Noninterest Income | $180 | $165 | | Noninterest Expense | $496 | $479 | | **Net Income** | **$175** | **$217** | | **Diluted EPS** | **$1.13** | **$1.40** | [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies, fair value, loans, derivatives, and commitments, including ASU 2022-02 - The bank adopted **ASU 2022-02** on January 1, 2023, which eliminated the recognition and measurement of Troubled Debt Restructurings (TDRs) and required enhanced disclosures for loan modifications to borrowers experiencing financial difficulty[258](index=258&type=chunk)[259](index=259&type=chunk) - At September 30, 2023, the bank had **$22.7 billion** in total derivative notional amounts, primarily used to manage interest rate risk. This includes **$7.6 billion** designated as hedging instruments[285](index=285&type=chunk) - The bank has unfunded lending commitments of **$29.7 billion** and total unfunded commitments of **$30.5 billion** as of September 30, 2023[305](index=305&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=93&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company identifies interest rate and market risk as its most significant risks, actively monitored by management - The company identifies **interest rate and market risk** as its most significant risks, which are closely monitored by management[330](index=330&type=chunk) [Controls and Procedures](index=94&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of September 30, 2023[331](index=331&type=chunk) - There were **no changes in internal control over financial reporting** during Q3 2023 that materially affected, or are likely to materially affect, internal controls[331](index=331&type=chunk) [PART II. OTHER INFORMATION](index=94&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=94&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in material legal proceedings, with estimated possible losses up to $5 million in excess of accruals - The company is subject to **material litigation**, including two cases related to a bankrupt borrower and one case regarding foreign transaction fees[307](index=307&type=chunk)[310](index=310&type=chunk) - The aggregate range of reasonably possible losses for significant matters where a loss is not probable but reasonably possible is estimated to be from zero to approximately **$5 million** in excess of current accruals[308](index=308&type=chunk) [Risk Factors](index=94&type=section&id=ITEM%201A.%20RISK%20FACTORS) Amended risk factors highlight liquidity and capital changes from banking events, systemic risk, geopolitical conflicts, and government shutdowns - Recent banking industry events have led to **deposit fluctuations and increased funding costs**, which may limit operations and growth[333](index=333&type=chunk) - **Systemic risk** is highlighted, where concerns about or failures of other financial institutions could lead to market-wide liquidity problems and adversely affect the company[335](index=335&type=chunk) - **Geopolitical conflicts** (Russia/Ukraine, Middle East) and potential **U.S. government shutdowns** are cited as risks that could disrupt economies, markets, and introduce volatility[337](index=337&type=chunk)[339](index=339&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered sales of equity securities occurred during the reporting period - The company reported **no unregistered sales of equity securities** or use of proceeds from such sales[340](index=340&type=chunk) [Other Information](index=95&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted, modified, or terminated a Rule 10b5-1(c) trading arrangement during Q3 2023 - **No directors or officers adopted, modified, or terminated a Rule 10b5-1(c) trading arrangement** during Q3 2023[341](index=341&type=chunk) [Exhibits](index=96&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and financial data in Inline XBRL format - Exhibits filed include **CEO and CFO certifications (31.1, 31.2, 32)** and **financial statements in Inline XBRL format (101)**[343](index=343&type=chunk)

Financial Data and Key Metrics Changes - Customer deposits grew by $3 billion during the quarter, resulting in a 5% increase in period-end customer deposits and a 1% total deposit growth quarter-over-quarter [9][11] - Diluted earnings per share increased by $0.02 to $1.13, with net income reported at $168 million [12] - Adjusted pre-provision net revenue decreased to $272 million, down from $296 million, reflecting a 23% decline year-over-year [13][21] - Total deposit costs rose to 192 basis points from 127 basis points in the previous quarter [11][23] Business Line Data and Key Metrics Changes - Period-end loans remained flat compared to the prior quarter, indicating softening loan demand [11][22] - Non-interest income from customer-related activities was $157 million, a decrease of 3% from the previous quarter [19] - Adjusted non-interest expenses were flat at $493 million, with reported expenses decreasing to $496 million [21] Market Data and Key Metrics Changes - Average deposit balances increased by 9% in the third quarter, while ending balances grew by 1% compared to the second quarter [23] - The cost of deposits increased to 192 basis points, reflecting a repricing beta of 36% for total deposits [23] Company Strategy and Development Direction - The company aims to maintain a strong loan-to-deposit ratio while continuing to grow customer deposits [62] - Management emphasized a commitment to managing balance sheet risks and optimizing funding sources [10][24] - The outlook for net interest income is stable, with expectations for loan growth to remain flat [18][29] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains strong, with non-performing assets increasing primarily due to specific office loans in Southern California [30][33] - The company expects to maintain strong levels of regulatory capital while managing a below-average risk profile [34] - Management acknowledged inflationary pressures impacting expense management efforts [52][53] Other Important Information - The Chief Credit Officer position was transitioned to Derek Steward following the retirement of Michael Morris [8] - The company celebrated its 150th anniversary, highlighting its long-standing commitment to community and customer service [6][7] Q&A Session Summary Question: Inquiry about NII decline in September - Management explained that monthly NII figures can fluctuate and emphasized the expectation of stable NII moving forward [37][39] Question: Expectations for deposit flows and beta - Management indicated a continued increase in deposit rates and migration from non-interest bearing to interest-bearing deposits [44][46] Question: Potential for loan growth - Management expressed caution regarding loan growth forecasts, noting recent weak demand but acknowledging potential for slight increases [48][50] Question: Expense rationalization efforts - Management discussed inflationary pressures affecting expense management and the impact of core system upgrades on expenses [51][55] Question: Clarification on deposit beta and costs - Management clarified that the increase in deposit costs is due to the lagging effect of deposit rates and migration trends [57][59]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ COMMISSION FILE NUMBER 001-12307 ZIONS BANCORPORATION, NATIONAL ASSOCIATION (Exact name of registrant as specified in its charter) United States ...