Company Overview - Zions (ZION) is a financial holding company based in Salt Lake City, operating in the Finance sector with a year-to-date share price change of 2.08% [3] - The company currently pays a dividend of $0.43 per share, resulting in a dividend yield of 3.11%, which is higher than the Banks - West industry's yield of 2.93% and the S&P 500's yield of 1.45% [3] Dividend Performance - Zions has an annualized dividend of $1.72, reflecting a 3.6% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times, achieving an average annual increase of 5.20% [4] - The current payout ratio is 31%, indicating that Zions paid out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $5.62 per share, representing a 13.54% increase from the previous year [5] - The company is viewed as a strong dividend play, appealing to income investors due to its solid earnings growth prospects and attractive dividend yield [6]

Core Viewpoint - Zions (ZION) is experiencing solid improvements in earnings estimates, leading to positive short-term price momentum and a favorable earnings outlook [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Zions' earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $1.42 per share, reflecting a +3.7% change from the previous year, with a 7.16% increase in the Zacks Consensus Estimate due to six upward revisions [6]. - For the full year, the earnings estimate stands at $5.56 per share, representing a +12.3% change from the prior year, with a 5.18% increase in the consensus estimate following seven upward revisions [7][8]. Zacks Rank - Zions currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock performance [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [9]. Stock Performance - Zions has seen a 12.8% gain in stock price over the past four weeks, driven by solid estimate revisions and promising earnings growth prospects [10].

Core Viewpoint - Zions Bancorporation (ZION) is identified as a strong value stock, currently holding a Zacks Rank 2 (Buy) and an A grade in the Value category, indicating it is likely undervalued in the market [4][7]. Valuation Metrics - ZION has a Forward P/E ratio of 10.48, which is lower than the industry average of 10.81. The stock's Forward P/E has fluctuated between 7.65 and 12.64 over the past year, with a median of 10.20 [4]. - The P/S ratio for ZION is 1.68, compared to the industry's average P/S of 2.21, highlighting its relative value based on sales performance [5]. - ZION's P/CF ratio stands at 9.10, which is below the industry average of 10.89. This ratio has ranged from 6.62 to 11.06 in the past year, with a median of 8.80 [6]. Investment Outlook - The combination of ZION's strong earnings outlook and favorable valuation metrics suggests that it is an impressive value stock at the moment, appealing to value investors [7].

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades with a proven track record of success [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, allowing for comprehensive market analysis [1] - BAD BEAT Investing aims to educate investors on trading proficiency, offering in-depth research with clear entry and exit targets to save time for investors [1] Group 2 - Benefits of BAD BEAT Investing include understanding market dynamics, receiving well-researched trade ideas weekly, and access to multiple chat rooms for discussions [2] - Members receive daily summaries of key analyst upgrades and downgrades, along with learning opportunities in basic options trading and access to extensive trading tools [2]

Core Insights - Zions Bancorporation's shares increased by 4.4% following better-than-expected quarterly results, with Q2 2025 adjusted EPS of $1.58 surpassing the Zacks Consensus Estimate of $1.31 and reflecting a 30.6% year-over-year growth [1][9] Financial Performance - The quarterly results were driven by higher net interest income (NII) and non-interest income, along with a provision benefit, while increased loan amounts also contributed positively [2][9] - Net revenues (tax equivalent) reached $851 million, an 8.1% increase year-over-year, exceeding the Zacks Consensus Estimate of $815.5 million [4] - NII was reported at $648 million, up 8.5%, attributed to lower funding costs and an increase in average interest-earning assets, with net interest margin (NIM) expanding by 19 basis points to 3.17% [4][9] - Non-interest income rose 6.1% to $190 million, driven by increases in most components, while adjusted non-interest expenses increased by 3% to $521 million [5] - As of June 30, 2025, net loans and leases held for investment were $60.1 billion, a 1.5% increase from the prior quarter, while total deposits decreased by 2.5% to $73.8 billion [6] Credit Quality - The ratio of non-performing assets to loans and leases increased by 6 basis points year-over-year to 0.51%, with net loan and lease charge-offs of $10 million, down 33.3% from the previous year [7] - Provision for credit losses was negative $1 million in the reported quarter, compared to a provision of $5 million in the year-ago quarter [7] Profitability and Capital Ratios - The Tier 1 leverage ratio remained stable at 8.5%, while the common equity tier 1 capital ratio increased to 11% from 10.6% in the prior year [8] - The return on average assets improved to 1.09%, up from 0.91% in the prior year, and return on average tangible common equity rose to 18.7% from 17.5% [10] Market Outlook - The rising loan demand and improving fee income, along with relatively higher interest rates, are positive indicators for the future of Zions [11]

Core Insights - Zions (ZION) reported revenue of $851 million for the quarter ended June 2025, reflecting an 8.1% increase year-over-year, with EPS at $1.58 compared to $1.21 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $815.47 million by 4.36%, and the EPS surpassed the consensus estimate of $1.31 by 20.61% [1] Financial Performance Metrics - Net interest margin was reported at 3.2%, slightly above the average estimate of 3.1% [4] - Net charge-offs to average loans and leases remained stable at 0.1%, matching the average estimate [4] - Average balance of total interest-earning assets was $83.57 billion, exceeding the estimated $82.57 billion [4] - Efficiency Ratio was reported at 62.2%, better than the estimated 64.4% [4] - Total nonaccrual loans were $308 million, slightly above the estimate of $307.16 million [4] - Total nonperforming assets were $313 million, compared to the average estimate of $310.07 million [4] - Tier 1 leverage ratio was 8.5%, below the estimated 8.8% [4] - Tier 1 risk-based capital ratio was 11.1%, below the estimated 11.4% [4] - Total risk-based capital ratio was 13.4%, slightly below the estimate of 13.5% [4] - Total noninterest income was $190 million, exceeding the average estimate of $168.11 million [4] - Dividends and other income (loss) were reported at $12 million, above the estimate of $8.27 million [4] - Taxable-equivalent net interest income was $661 million, surpassing the average estimate of $647.8 million [4] Stock Performance - Zions shares returned +16.9% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported net earnings of $243 million for the second quarter, reflecting a 28% improvement year-over-year and a 44% increase compared to the first quarter [6][9] - The efficiency ratio improved to 62.2%, and the net interest margin increased for the sixth consecutive quarter to 3.17% [10][12] - Average customer deposits increased by 0.5% year-over-year but decreased by 1.4% on a linked quarter basis [10][18] - Average loans grew by 5.6% on an annualized linked quarter basis and 3.7% year-over-year [10][17] Business Line Data and Key Metrics Changes - The company experienced a 91% increase in the number of loans booked through the SBA program in the first nine months of the fiscal year compared to the previous year [8] - Customer-related non-interest income was $164 million, a 4% increase on a linked quarter basis and a 7% increase year-over-year [14] - Adjusted non-interest expenses decreased by $12 million compared to the prior year, reflecting lower technology costs [15] Market Data and Key Metrics Changes - The company noted a decline in average broker deposits by 8% and a decrease in total average deposits by 0.9% due to seasonal customer deposit outflows [18] - Non-performing assets remained low at 0.51% of loans and other real estate owned [21][23] Company Strategy and Development Direction - The company is focusing on growing customer relationships, particularly in small business banking, and has launched a consumer gold account offering aimed at the mass affluent market [7][8] - The management is optimistic about the potential for growth, citing reduced tariff-related risks and a more favorable economic outlook [6][29] - The company is exploring opportunities in capital markets, including M&A advisory work and launching an oil and gas derivatives business [108] Management's Comments on Operating Environment and Future Outlook - Management expressed a more positive outlook compared to the previous quarter, attributing it to reduced uncertainty in the macro environment and a more flexible administration regarding tariffs [29][31] - The company expects continued growth in net interest income and customer-related fee income, supported by increased customer activity and new client acquisition [13][15] Other Important Information - The company recorded a negative provision for credit losses of $1 million, reducing the allowance for credit losses by $11 million relative to the prior quarter [22] - The common equity Tier one ratio was reported at 11%, indicating strong capital levels [25] Q&A Session Summary Question: What are you hearing from clients in the small business and middle market side? - Management noted that while some businesses are being hurt by tariffs, others see opportunities, leading to a more optimistic outlook compared to the previous quarter [29][31] Question: Are you seeing any elevated competition on the deposit side? - Management acknowledged a competitive market for deposits but emphasized a focus on maintaining margin while growing the deposit base [32][34] Question: Can you provide color on the increase in loan growth? - Loan growth was solid, primarily driven by commercial and industrial loans, with increased utilization and new originations contributing significantly [40][41] Question: Can you discuss the potential benefits of deregulation for the company? - Management highlighted the potential benefits of tiering in regulatory requirements, which could positively impact the company's operations and M&A strategy [45][47] Question: What is the outlook for your capital markets business? - The capital markets business is growing nicely, with expectations to double in size over the next few years, driven by loan syndications and new service offerings [106][108]

Financial Data and Key Metrics Changes - The company reported second quarter net earnings of $243 million, reflecting a 28% improvement over the prior year period and a 44% increase compared to the first quarter [5][7] - The efficiency ratio improved to 62.2%, and the net interest margin increased for the sixth consecutive quarter to 3.17% due to lower funding costs and an improved earning asset mix [8][12] - Average customer deposits increased by 0.5% year-over-year but decreased by 1.4% on a linked quarter basis [9] - Average loans grew by 5.6% on an annualized linked quarter basis and 3.7% year-over-year [10][17] Business Line Data and Key Metrics Changes - The company experienced a 91% increase in the number of deals booked through the SBA seven program in the first nine months of the fiscal year compared to the same period last year [6] - Customer-related non-interest income was $164 million for the quarter, a 4% increase on a linked quarter basis and a 7% increase year-over-year [13] - Adjusted non-interest expenses decreased by $12 million compared to the prior year, reflecting lower technology costs [14][15] Market Data and Key Metrics Changes - The company noted stability in non-interest bearing deposits at 34% of total deposits [9] - Average non-interest bearing deposits grew approximately $480 million or 2% compared to the prior quarter [18] Company Strategy and Development Direction - The company is focusing on growing customer relationships, particularly in small business banking, and has launched a consumer gold account offering in the Nevada market [6][7] - The management is optimistic about the potential for growth in the outlook, citing reduced tariff-related risks and a more favorable economic environment [5][31] Management's Comments on Operating Environment and Future Outlook - Management expressed a more positive outlook compared to the previous quarter, noting that the economy is weathering challenges better than anticipated [32] - The company expects continued growth in net interest income and customer-related fee income for 2026, supported by increased customer activity and new client acquisition [12][14] Other Important Information - The allowance for credit losses as a percentage of loans and leases declined to 1.2%, with non-performing assets remaining low at 0.51% [21][24] - The common equity Tier one ratio was reported at 11%, indicating strong capital levels [24] Q&A Session Summary Question: What are you hearing from clients in the small business and middle market side? - Management noted a more positive sentiment among clients due to reduced uncertainty in the macro environment and some businesses seeing opportunities despite challenges [30][31] Question: Are you seeing any elevated competition on the deposit side? - Management acknowledged a competitive market for deposits but emphasized a focus on maintaining margin while growing the deposit base [33][34] Question: Can you provide color on the increase in loan growth? - Loan growth was solid, primarily driven by commercial and industrial loans, with increased utilization and new originations contributing significantly [41][42] Question: Can you discuss the potential benefits of deregulation for the company? - Management highlighted the potential benefits of tiering in regulatory requirements and expressed a strategic approach to M&A, focusing on organic growth [46][49] Question: What is the outlook for capital markets business? - The capital markets business is growing nicely, with expectations to double in size over a four to five-year period, driven by various segments including loan syndications and M&A advisory work [110][111]

Group 1 - Zions reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.31 per share, and up from $1.21 per share a year ago, representing an earnings surprise of +20.61% [1] - The company posted revenues of $851 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.36%, compared to $787 million in the same quarter last year [2] - Zions has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has gained approximately 4.7% since the beginning of the year, while the S&P 500 has increased by 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $828.1 million, and for the current fiscal year, it is $5.33 on revenues of $3.29 billion [7] - The Zacks Industry Rank for Banks - West is in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

```markdown [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Zions Bancorporation's Q2 2025 results show strong net earnings, improved NIM, and solid credit quality [Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) Zions Bancorporation reported strong financial results for Q2 2025, with significant increases in net earnings and diluted EPS compared to both the prior year and prior quarter, driven by improved net interest margin and overall operating performance | Metric | 2Q25 | 2Q24 | 1Q25 | | :--------------------------- | :----- | :----- | :----- | | Net Earnings (million) | $243 | $190 | $169 | | Diluted EPS | $1.63 | $1.28 | $1.13 | - Net interest margin (NIM) **improved to 3.17%** in 2Q25, **up from 2.98%** in 2Q24[3](index=3&type=chunk) - **Estimated common equity tier 1 ratio increased to 11.0%** in 2Q25[3](index=3&type=chunk) [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) Key financial highlights for Q2 2025 include a 9% increase in net interest income, a 17% rise in pre-provision net revenue (PPNR), and 4% growth in loans and leases. Credit quality remained solid with low net charge-offs, while capital ratios strengthened | Metric | 2Q25 vs 2Q24 Change | | :------------------------------------ | :------------------ | | Net Interest Income | Up 9% to $648 million | | Net Interest Margin (NIM) | 3.17% vs 2.98% | | Pre-provision net revenue (PPNR) | Up 17% to $324 million | | Adjusted PPNR | Up 14% to $316 million | | Customer-related noninterest income | Up 7% to $164 million | | Noninterest expense | Up 4% to $527 million | | Adjusted noninterest expense | Up 3% to $521 million | | Loans and leases | Up 4% to $60.8 billion | | Provision for credit losses | Negative $1 million vs positive $5 million | | Annualized net loan/lease charge-offs | 0.07% vs 0.10% | | Nonperforming assets | $313 million (0.51%) vs $265 million (0.45%) | | Classified loans | $2.7 billion (4.43%) vs $1.3 billion (2.16%) | | Total deposits | Stable at $73.8 billion | | Customer deposits | Up 1% to $69.9 billion | | Short-term borrowings | Up 7% to $6.1 billion | | Estimated CET1 capital ratio | 11.0% vs 10.6% | | Net unrealized gain (Fatpipe, Inc.) | $9 million ($0.05 per share) | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Harris H. Simmons expressed satisfaction with the strong Q2 2025 financial results, highlighting a 27% increase in EPS and a 14% rise in adjusted pre-provision net revenue. He noted continued improvement in net interest margin, solid credit results, and an incrementally more optimistic outlook for economic growth in the latter half of the year - **Earnings per share increased 27% over the prior year period**, and **adjusted pre-provision net revenue was up 14%**[5](index=5&type=chunk) - **Net interest margin improved to 3.17% from 2.98% a year ago**, and **customer-related noninterest income rose 7%**[5](index=5&type=chunk) - **Average loans were up 4% over last year**, with **solid credit results** and **net charge-offs of only 7 basis points** of average loans[5](index=5&type=chunk) - The CEO is **incrementally more optimistic about growth** in the back half of the year, despite some signs of moderate slowing in the economy[5](index=5&type=chunk) [Operating Performance Summary](index=1&type=section&id=Operating%20Performance%20Summary) The company's operating performance for Q2 2025 showed improvements in profitability and efficiency, with a higher net interest margin and adjusted pre-provision net revenue, alongside a lower efficiency ratio compared to the prior year | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Interest Margin | 3.17 % | 2.98 % | 3.14 % | 2.96 % | | Adjusted PPNR (million) | $316 | $278 | $583 | $520 | | Net charge offs (million) | $10 | $15 | $26 | $21 | | Efficiency ratio | 62.2 % | 64.5 % | 64.4 % | 66.2 % | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) This section details net interest income, noninterest income, and noninterest expenses, highlighting profitability drivers [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased by 9% year-over-year to $648 million, primarily due to lower funding costs and growth in average interest-earning assets, leading to an improved net interest margin of 3.17% | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Net interest income | $648 | $624 | $597 | $24 | 4 % | $51 | 9 % | | Yield on interest-earning assets | 5.11 % | 5.08 % | 5.31 % | 3 bps | | (20) bps | | | Rate paid on total deposits and interest-bearing liabilities | 1.97 % | 2.01 % | 2.36 % | (4) bps | | (39) bps | | | Cost of deposits | 1.68 % | 1.76 % | 2.11 % | (8) bps | | (43) bps | | | Net interest margin | 3.17 % | 3.10 % | 2.98 % | 7 bps | | 19 bps | | - The **increase in net interest income was primarily due to lower funding costs and an increase in average interest-earning assets**, supported by **growth in average loans** and money market investments[9](index=9&type=chunk) - **Average interest-earning assets increased $1.5 billion (2%) from the prior year quarter**, driven by a **$2.2 billion increase in average loans and leases**[12](index=12&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Total noninterest income rose by 6% year-over-year to $190 million, primarily driven by an increase in customer-related fees, particularly capital markets fees, and significant net securities gains from an SBIC investment IPO | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :-------------------------------- | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Customer-related noninterest income | $164 | $158 | $153 | $6 | 4 % | $11 | 7 % | | Capital markets fees and income | $28 | $27 | $20 | $1 | 4 % | $8 | 40 % | | Retail and business banking fees | $19 | $17 | $16 | $2 | 12 % | $3 | 19 % | | Securities gains (losses), net | $14 | $6 | $4 | $8 | NM | $10 | NM | | Dividends and other income | $12 | $7 | $22 | $5 | 71 % | ($10) | (45)% | | Total noninterest income | $190 | $171 | $179 | $19 | 11 % | $11 | 6 % | - **Customer-related noninterest income increased $11 million, or 7%**, driven by an **$8 million increase in capital markets fees and income** due to higher swap fees and loan syndication activity[14](index=14&type=chunk) - **Net securities gains increased $10 million**, including an **$11 million unrealized gain from the IPO of an SBIC investment** (FatPipe, Inc.)[15](index=15&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Total noninterest expense increased by 4% year-over-year to $527 million, primarily due to higher salaries and employee benefits and other noninterest expenses, partially offset by reduced professional and legal services. The efficiency ratio improved to 62.2% | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Salaries and employee benefits | $336 | $342 | $318 | ($6) | (2)% | $18 | 6 % | | Professional and legal services | $13 | $13 | $17 | $0 | 0 % | ($4) | (24)% | | Other noninterest expense | $35 | $33 | $29 | $2 | 6 % | $6 | 21 % | | Total noninterest expense | $527 | $538 | $509 | ($11) | (2)% | $18 | 4 % | | Adjusted noninterest expense | $521 | $533 | $506 | ($12) | (2)% | $15 | 3 % | - **Salaries and employee benefits increased $18 million**, primarily due to higher incentive compensation accruals from **improved profitability**[18](index=18&type=chunk) - **Other noninterest expense increased $6 million**, largely driven by **increases in legal reserves** and the success fee accrual related to the FatPipe, Inc. IPO[18](index=18&type=chunk) - The **efficiency ratio improved to 62.2% from 64.5% in the prior year**, reflecting positive operating leverage as **adjusted pre-provision net revenue increased 14%**[19](index=19&type=chunk) [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) This section analyzes investment securities, loans, credit quality, deposits, and shareholders' equity [Investment Securities](index=4&type=section&id=Investment%20Securities) Total investment securities decreased by 6% year-over-year to $18.4 billion, primarily due to principal reductions. The portfolio is managed for liquidity, interest rate risk, and income generation, with a focus on securities that provide cash through secured borrowing agreements | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Available-for-sale, at fair value | $9,116 | $9,223 | $9,483 | ($107) | (1)% | ($367) | (4)% | | Held-to-maturity, at amortized cost | $9,272 | $9,481 | $10,065 | ($209) | (2)% | ($793) | (8)% | | Total investment securities, net of allowance | $18,388 | $18,704 | $19,548 | ($316) | (2)% | ($1,160) | (6)% | - The portfolio mainly consists of securities that can readily provide cash and liquidity through secured borrowing agreements, balancing interest rate risk between loans and deposits[20](index=20&type=chunk) [Loans and Leases](index=4&type=section&id=Loans%20and%20Leases) Loans and leases, net of unearned income and fees, grew by 4% year-over-year to $60.8 billion, primarily driven by increases in consumer loans (especially 1-4 family residential) and commercial loans (commercial and industrial) | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Commercial loans | $31,646 | $31,010 | $30,511 | $636 | 2 % | $1,135 | 4 % | | Commercial real estate loans | $13,611 | $13,593 | $13,549 | $18 | 0 % | $62 | 0 % | | Consumer loans | $15,576 | $15,338 | $14,355 | $238 | 2 % | $1,221 | 9 % | | Total loans and leases, net of unearned income and fees | $60,833 | $59,941 | $58,415 | $892 | 1 % | $2,418 | 4 % | - **Growth was driven by a $1.2 billion increase in consumer loans**, primarily within the 1-4 family residential loan portfolio, and a **$1.1 billion increase in commercial loans**, mainly commercial and industrial[21](index=21&type=chunk) [Credit Quality](index=5&type=section&id=Credit%20Quality) Credit quality metrics showed a negative provision for credit losses in Q2 2025, but nonperforming assets and classified loans increased year-over-year, particularly in CRE and consumer 1-4 family residential portfolios. The increase in classified loans was attributed to changes in risk grading and weaker performance in recent construction loan vintages | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Provision for credit losses | ($1) | $18 | $5 | ($19) | NM | ($6) | NM | | Allowance for credit losses (ACL) | $732 | $743 | $726 | ($11) | (1)% | $6 | 1 % | | Net loan and lease charge-offs | $10 | $16 | $15 | ($6) | (38)% | ($5) | (33)% | | Nonperforming assets | $313 | $307 | $265 | $6 | 2 % | $48 | 18 % | | Classified loans | $2,697 | $2,891 | $1,264 | ($194) | (7)% | $1,433 | NM | | Ratio of ACL to loans and leases outstanding | 1.20 % | 1.24 % | 1.24 % | (4) bps | | (4) bps | | | Annualized ratio of net loan and lease charge-offs to average loans | 0.07 % | 0.11 % | 0.10 % | (4) bps | | (3) bps | | | Ratio of nonperforming assets to loans and leases and other real estate owned | 0.51 % | 0.51 % | 0.45 % | 0 bps | | 6 bps | | | Ratio of classified loans to total loans and leases | 4.43 % | 4.82 % | 2.16 % | (39) bps | | 227 bps | | - The **year-over-year increase in nonperforming assets was concentrated in term CRE, consumer 1-4 family residential, and owner-occupied loan portfolios**[23](index=23&type=chunk) - The **year-over-year increase in classified loans was primarily in multifamily and industrial CRE**, due to increased emphasis on current cash flows in risk grading and weaker performance in 2021-2023 construction loan vintages[24](index=24&type=chunk) [Deposits and Borrowed Funds](index=6&type=section&id=Deposits%20and%20Borrowed%20Funds) Total deposits remained stable year-over-year at $73.8 billion, with an increase in noninterest-bearing demand deposits offsetting a decline in interest-bearing deposits. Total borrowed funds increased by 14%, driven by long-term debt and FHLB advances | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Noninterest-bearing demand deposits | $25,413 | $24,792 | $24,731 | $621 | 3 % | $682 | 3 % | | Total interest-bearing deposits | $48,387 | $50,900 | $49,039 | ($2,513) | (5)% | ($652) | (1)% | | Total deposits | $73,800 | $75,692 | $73,770 | ($1,892) | (2)% | $30 | 0 % | | Total borrowed funds | $7,042 | $4,440 | $6,197 | $2,602 | 59 % | $845 | 14 % | | Loan-to-deposit ratio | 82 % | | 79 % | | | 3 % | | - The **increase in noninterest-bearing demand deposits was largely due to the migration of a consumer interest-bearing product into a new noninterest-bearing product**[25](index=25&type=chunk) - **Total borrowed funds increased $845 million, or 14%**, driven by **increases in long-term debt** (including **$500 million of new subordinated notes**) and FHLB short-term advances[27](index=27&type=chunk) [Shareholders' Equity](index=7&type=section&id=Shareholders%27%20Equity) Total shareholders' equity increased by 9% year-over-year to $6.6 billion, primarily driven by an increase in retained earnings and reduced unrealized losses in AOCI. The estimated CET1 capital ratio improved to 11.0%, and tangible book value per common share increased significantly | Metric | 2Q25 (million) | 1Q25 (million) | 2Q24 (million) | 2Q25-1Q25 ($ Change) | 2Q25-1Q25 (% Change) | 2Q25-2Q24 ($ Change) | 2Q25-2Q24 (% Change) | | :------------------------------------ | :------------- | :------------- | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Total shareholders' equity | $6,596 | $6,327 | $6,025 | $269 | 4 % | $571 | 9 % | | Preferred stock | $66 | $66 | $440 | $0 | 0 % | ($374) | (85)% | | Retained earnings | $6,981 | $6,805 | $6,421 | $176 | 3 % | $560 | 9 % | | Accumulated other comprehensive income (loss) | ($2,164) | ($2,250) | ($2,549) | $86 | 4 % | $385 | 15 % | | Common dividends paid | $64 | $65 | $61 | ($1) | (2)% | $3 | 5 % | | Estimated CET1 capital | $7,600 | | $7,100 | | | $500 | 7 % | | Estimated CET1 capital ratio | 11.0 % | | 10.6 % | | | 0.4 % | | | Tangible book value per common share | $36.81 | | $30.67 | | | $6.14 | | - **Preferred stock decreased $374 million** due to the redemption of Series G, I, and J preferred stock in Q4 2024[28](index=28&type=chunk) - The **AOCI loss improved by $385 million year-over-year**, largely reflecting a decline in the fair value of fixed-rate available-for-sale securities due to interest rate changes[30](index=30&type=chunk) [Company Information & Forward-Looking Statements](index=7&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) This section provides company background, investor call details, and forward-looking statement disclosures [Supplemental Presentation and Conference Call](index=7&type=section&id=Supplemental%20Presentation%20and%20Conference%20Call) Zions Bancorporation will host a conference call and webcast on July 21, 2025, at 5:30 p.m. ET to discuss its second quarter results, with a supplemental presentation available on its website - A supplemental presentation and conference call to discuss Q2 results will be held on **July 21, 2025, at 5:30 p.m. ET**[32](index=32&type=chunk) - Details for joining the call **(877) 709-8150, meeting number 13754751**, and webcast link are available on www.zionsbancorporation.com[32](index=32&type=chunk) [About Zions Bancorporation, N.A.](index=8&type=section&id=About%20Zions%20Bancorporation%2C%20N.A.) Zions Bancorporation, N.A. is a prominent financial services company operating in 11 western states, known for its local management teams and distinct brands. In 2024, it reported $3.1 billion in net revenue and approximately $89 billion in total assets, recognized for its excellence in small- and middle-market banking, public finance advisory, and SBA lending - **Zions Bancorporation, N.A. is a premier financial services company with annual net revenue of $3.1 billion in 2024 and total assets of approximately $89 billion** at December 31, 2024[33](index=33&type=chunk) - The company operates under local management teams and distinct brands in **11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming**[33](index=33&type=chunk) - Zions is recognized for customer survey awards in small- and middle-market banking, leadership in public finance advisory services and Small Business Administration lending, and is included in the S&P MidCap 400 and NASDAQ Financial 100 indices[33](index=33&type=chunk) [Forward-Looking Information](index=8&type=section&id=Forward-Looking%20Information) This section contains forward-looking statements subject to various known and unknown risks and uncertainties that could cause actual results to differ materially. Key factors include changes in economic conditions, interest rates, regulatory policies, competitive pressures, technological impacts, and geopolitical events - Forward-looking statements are based on management's current expectations and assumptions, but actual results may differ materially due to known and unknown risks, uncertainties, and other factors[34](index=34&type=chunk)[35](index=35&type=chunk) - Key factors that may cause material differences include changes in general industry, political, and economic conditions (e.g., inflation, recessions, interest rates), regulatory changes, evolving trade policies, and judicial/administrative inquiries[35](index=35&type=chunk) - Other significant factors include competitive pressures, impacts of emerging technologies (AI, digital currencies), cybersecurity risks, natural disasters, and governmental/social responses to ESG issues[37](index=37&type=chunk) [Financial Tables & Non-GAAP Measures](index=10&type=section&id=Financial%20Tables%20%26%20Non-GAAP%20Measures) This section presents detailed financial tables and reconciliations of non-GAAP financial measures [Financial Highlights (Summary Table)](index=10&type=section&id=Financial%20Highlights%20(Summary%20Table)) This section provides a consolidated overview of key financial metrics, including balance sheet items, income statement figures, per-share amounts, selected ratios, and capital ratios, across multiple quarters | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | **BALANCE SHEET** | | | | | Loans held for investment, net of allowance (million) | $60,143 | $59,244 | $57,719 | | Total assets (million) | $88,893 | $87,992 | $87,606 | | Deposits (million) | $73,800 | $75,692 | $73,770 | | Total shareholders' equity (million) | $6,596 | $6,327 | $6,025 | | **STATEMENT OF INCOME** | | | | | Net earnings applicable to common shareholders (million) | $243 | $169 | $190 | | Net interest income (million) | $648 | $624 | $597 | | Total noninterest income (million) | $190 | $171 | $179 | | Total noninterest expense (million) | $527 | $538 | $509 | | Provision for credit losses (million) | ($1) | $18 | $5 | | **SHARE AND PER COMMON SHARE AMOUNTS**| | | | | Net earnings per diluted common share | $1.63 | $1.13 | $1.28 | | Dividends | $0.43 | $0.43 | $0.41 | | Tangible book value per common share | $36.81 | $34.95 | $30.67 | | **SELECTED RATIOS AND OTHER DATA** | | | | | Net interest margin | 3.17 % | 3.10 % | 2.98 % | | Efficiency ratio | 62.2 % | 66.6 % | 64.5 % | | Ratio of nonperforming assets to loans and leases and other real estate owned | 0.51 % | 0.51 % | 0.45 % | | Annualized ratio of net loan and lease charge offs to average loans | 0.07 % | 0.11 % | 0.10 % | | **CAPITAL RATIOS AND DATA** | | | | | Common equity tier 1 capital ratio | 11.0 % | 10.8 % | 10.6 % | [Consolidated Balance Sheets (Detailed)](index=12&type=section&id=Consolidated%20Balance%20Sheets%20(Detailed)) This table presents a detailed breakdown of the company's assets, liabilities, and shareholders' equity across several quarters, providing a comprehensive view of its financial position | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **ASSETS** | | | | | | | Cash and due from banks | $780 | $833 | $651 | $1,114 | $717 | | Total investment securities, net of allowance | $18,388 | $18,704 | $18,764 | $19,352 | $19,548 | | Loans held for investment, net of allowance | $60,143 | $59,244 | $58,714 | $58,190 | $57,719 | | Total assets | $88,893 | $87,992 | $88,775 | $87,032 | $87,606 | | **LIABILITIES AND SHAREHOLDERS' EQUITY**| | | | | | | Noninterest-bearing demand deposits | $25,413 | $24,792 | $24,704 | $24,973 | $24,731 | | Total interest-bearing deposits | $48,387 | $50,900 | $51,519 | $50,745 | $49,039 | | Total deposits | $73,800 | $75,692 | $76,223 | $75,718 | $73,770 | | Federal funds and other short-term borrowings | $6,072 | $3,476 | $3,832 | $2,919 | $5,651 | | Long-term debt | $970 | $964 | $950 | $548 | $546 | | Total liabilities | $82,297 | $81,665 | $82,651 | $80,647 | $81,581 | | Total shareholders' equity | $6,596 | $6,327 | $6,124 | $6,385 | $6,025 | [Consolidated Statements of Income (Detailed)](index=13&type=section&id=Consolidated%20Statements%20of%20Income%20(Detailed)) This section provides a comprehensive breakdown of revenues, expenses, and net earnings for various periods [Three Months Ended](index=13&type=section&id=Three%20Months%20Ended) This table provides a detailed breakdown of the company's income and expenses for the three months ended June 30, 2025, and comparative periods, highlighting revenue sources, operating costs, and net earnings | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total interest income | $1,051 | $1,028 | $1,062 | $1,104 | $1,073 | | Total interest expense | $403 | $404 | $435 | $484 | $476 | | Net interest income | $648 | $624 | $627 | $620 | $597 | | Total provision for credit losses | ($1) | $18 | $41 | $13 | $5 | | Total noninterest income | $190 | $171 | $193 | $172 | $179 | | Total noninterest expense | $527 | $538 | $509 | $502 | $509 | | Income before income taxes | $312 | $239 | $270 | $277 | $262 | | Net income | $244 | $170 | $216 | $214 | $201 | | Net earnings applicable to common shareholders | $243 | $169 | $200 | $204 | $190 | | Diluted net earnings per common share | $1.63 | $1.13 | $1.34 | $1.37 | $1.28 | [Six Months Ended](index=15&type=section&id=Six%20Months%20Ended) This table provides a detailed breakdown of the company's income and expenses for the six months ended June 30, 2025, and the comparative prior year period, offering a year-to-date perspective on financial performance | (In millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Total interest income | $2,079 | $2,127 | | Total interest expense | $807 | $944 | | Net interest income | $1,272 | $1,183 | | Total provision for credit losses | $17 | $18 | | Total noninterest income | $361 | $335 | | Total noninterest expense | $1,065 | $1,035 | | Income before income taxes | $551 | $465 | | Net income | $414 | $354 | | Net earnings applicable to common shareholders | $412 | $333 | | Diluted net earnings per common share | $2.77 | $2.24 | [Loan Portfolio and Credit Quality Details](index=16&type=section&id=Loan%20Portfolio%20and%20Credit%20Quality%20Details) This section details loan portfolio composition, nonperforming assets, and allowance for credit losses [Loan Balances Held for Investment by Portfolio Type](index=16&type=section&id=Loan%20Balances%20Held%20for%20Investment%20by%20Portfolio%20Type) This table details the composition of the loan portfolio by commercial, commercial real estate, and consumer categories across several quarters, showing trends in lending activity | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Commercial:** | | | | | | | Commercial and industrial | $17,526 | $16,900 | $16,891 | $16,757 | $16,622 | | Total commercial | $31,646 | $31,010 | $30,965 | $30,785 | $30,511 | | **Commercial real estate:** | | | | | | | Term | $11,186 | $10,878 | $10,703 | $10,650 | $10,824 | | Construction and land development | $2,425 | $2,715 | $2,774 | $2,833 | $2,725 | | Total commercial real estate | $13,611 | $13,593 | $13,477 | $13,483 | $13,549 | | **Consumer:** | | | | | | | 1-4 family residential | $10,431 | $10,312 | $9,939 | $9,489 | $9,153 | | Home equity credit line | $3,784 | $3,670 | $3,641 | $3,543 | $3,468 | | Total consumer | $15,576 | $15,338 | $14,968 | $14,616 | $14,355 | | Total loans and leases | $60,833 | $59,941 | $59,410 | $58,884 | $58,415 | [Nonperforming Assets](index=16&type=section&id=Nonperforming%20Assets) This table provides a detailed view of nonperforming assets, including nonaccrual loans and other real estate owned, along with relevant ratios, indicating trends in asset quality | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Nonaccrual loans | $308 | $305 | $297 | $363 | $261 | | Other real estate owned | $5 | $2 | $1 | $5 | $4 | | Total nonperforming assets | $313 | $307 | $298 | $368 | $265 | | Ratio of nonperforming assets to loans and leases and other real estate owned | 0.51 % | 0.51 % | 0.50 % | 0.62 % | 0.45 % | | Classified loans | $2,697 | $2,891 | $2,870 | $2,093 | $1,264 | | Ratio of classified loans to total loans and leases | 4.43 % | 4.82 % | 4.83 % | 3.55 % | 2.16 % | [Allowance for Credit Losses](index=17&type=section&id=Allowance%20for%20Credit%20Losses) This table presents the allowance for loan and lease losses and the reserve for unfunded lending commitments, along with related ratios, showing the company's provisions for potential credit losses | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Allowance for Loan and Lease Losses (end of period) | $690 | $697 | $696 | $694 | $696 | | Provision for loan losses | $3 | $17 | $38 | $1 | $12 | | Net loan and lease charge-offs (recoveries) | $10 | $16 | $36 | $3 | $15 | | Reserve for Unfunded Lending Commitments (end of period) | $42 | $46 | $45 | $42 | $30 | | Total allowance for credit losses | $732 | $743 | $741 | $736 | $726 | | Ratio of ACL to loans and leases outstanding, at period end | 1.20 % | 1.24 % | 1.25 % | 1.25 % | 1.24 % | [Nonaccrual Loans by Portfolio Type](index=18&type=section&id=Nonaccrual%20Loans%20by%20Portfolio%20Type) This table categorizes nonaccrual loans by commercial, commercial real estate, and consumer portfolios, providing insight into specific areas of asset quality concern | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Commercial:** | | | | | | | Commercial and industrial | $113 | $121 | $114 | $173 | $111 | | Total commercial | $159 | $158 | $158 | $215 | $147 | | **Commercial real estate:** | | | | | | | Term | $60 | $58 | $59 | $67 | $35 | | Total commercial real estate | $60 | $58 | $59 | $69 | $37 | | **Consumer:** | | | | | | | 1-4 family residential | $58 | $56 | $49 | $47 | $46 | | Total consumer | $89 | $89 | $80 | $79 | $77 | | Total nonaccrual loans | $308 | $305 | $297 | $363 | $261 | [Net Charge-Offs by Portfolio Type](index=18&type=section&id=Net%20Charge-Offs%20by%20Portfolio%20Type) This table presents net charge-offs categorized by commercial, commercial real estate, and consumer loan types, illustrating the distribution of credit losses across the portfolio | (In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Commercial:** | | | | | | | Commercial and industrial | $8 | $13 | $35 | $3 | $4 | | Total commercial | $7 | $12 | $34 | $3 | $4 | | **Commercial real estate:** | | | | | | | Term | $1 | $0 | $0 | ($2) | $11 | | Total commercial real estate | $1 | $0 | $0 | ($2) | $11 | | **Consumer:** | | | | | | | 1-4 family residential | $1 | $1 | $0 | $0 | ($1) | | Bankcard and other revolving plans | $1 | $2 | $2 | $2 | $1 | | Total consumer loans | $2 | $4 | $2 | $2 | $0 | | Total net charge-offs (recoveries) | $10 | $16 | $36 | $3 | $15 | [Average Balance Sheets, Yields and Rates](index=19&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates) This section presents average balance sheet figures, along with detailed yields on interest-earning assets and rates paid on liabilities [Three Months Ended](index=19&type=section&id=Three%20Months%20Ended) This table presents average balance sheet figures, yields on interest-earning assets, and rates paid on interest-bearing liabilities for the three months ended June 30, 2025, and comparative periods, illustrating the dynamics of interest income and expense | (In millions) | June 30, 2025 Average balance | June 30, 2025 Yield/Rate | March 31, 2025 Average balance | March 31, 2025 Yield/Rate | June 30, 2024 Average balance | June 30, 2024 Yield/Rate | | :------------------------------------ | :---------------------------- | :----------------------- | :----------------------------- | :------------------------ | :---------------------------- | :----------------------- | | Total interest-earning assets | $83,566 | 5.11 % | $83,002 | 5.08 % | $82,098 | 5.31 % | | Total interest-bearing deposits | $49,536 | 2.52 % | $50,670 | 2.61 % | $49,075 | 3.20 % | | Total borrowed funds | $7,769 | 4.70 % | $6,652 | 4.74 % | $6,807 | 5.10 % | | Total interest-bearing liabilities | $57,305 | 2.82 % | $57,322 | 2.85 % | $55,882 | 3.43 % | | Net interest margin | | 3.17 % | | 3.10 % | | 2.98 % | | Memo: total cost of deposits | $74,266 | 1.68 % | $74,919 | 1.76 % | $74,228 | 2.11 % | [Six Months Ended](index=20&type=section&id=Six%20Months%20Ended) This table presents average balance sheet figures, yields on interest-earning assets, and rates paid on interest-bearing liabilities for the six months ended June 30, 2025, and the comparative prior year period, offering a year-to-date view of interest rate dynamics | (In millions) | June 30, 2025 Average balance | June 30, 2025 Yield/Rate | June 30, 2024 Average balance | June 30, 2024 Yield/Rate | | :------------------------------------ | :---------------------------- | :----------------------- | :---------------------------- | :----------------------- | | Total interest-earning assets | $83,286 | 5.09 % | $81,856 | 5.28 % | | Total interest-bearing deposits | $50,099 | 2.57 % | $48,448 | 3.18 % | | Total borrowed funds | $7,214 | 4.72 % | $7,014 | 5.13 % | | Total interest-bearing funds | $57,313 | 2.84 % | $55,462 | 3.42 % | | Net interest margin | | 3.14 % | | 2.96 % | | Memo: total cost of deposits | $74,590 | 1.72 % | $73,793 | 2.09 % | [Non-GAAP Financial Measures](index=21&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations and explanations for non-GAAP financial measures [Introduction to Non-GAAP Measures](index=21&type=section&id=Introduction%20to%20Non-GAAP%20Measures) This section introduces the use of non-GAAP financial measures, explaining their purpose in providing relevant insights into ongoing operating results and facilitating period-to-period comparisons, while also acknowledging their inherent limitations - Non-GAAP financial measures are presented to provide useful information about ongoing operating results and a meaningful basis for period-to-period comparisons, as used by management and the financial services industry[49](index=49&type=chunk) - These measures have inherent limitations, are not necessarily comparable to those of other companies, and should not be considered in isolation or as a substitute for GAAP results[50](index=50&type=chunk) [Tangible Common Equity and Related Measures](index=21&type=section&id=Tangible%20Common%20Equity%20and%20Related%20Measures) This section provides reconciliations and calculations for tangible common equity and related non-GAAP measures, which exclude intangible assets to offer a more consistent evaluation of business performance and shareholder equity utilization - **Tangible common equity and related measures exclude intangible assets** to provide useful information about the use of shareholders' equity and a consistent basis for evaluating business performance[51](index=51&type=chunk) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Adjusted net earnings applicable to common shareholders, net of tax (million) | $245 | $170 | $201 | $205 | $191 | | Average tangible common equity (non-GAAP) (million) | $5,260 | $5,130 | $4,983 | $4,684 | $4,394 | | Return on average tangible common equity (non-GAAP) | 18.7 % | 13.4 % | 16.0 % | 17.4 % | 17.5 % | | Tangible common equity (non-GAAP) (million) | $5,434 | $5,157 | $5,006 | $4,892 | $4,530 | | Tangible common equity ratio (non-GAAP) | 6.2 % | 5.9 % | 5.7 % | 5.7 % | 5.2 % | | Tangible book value per common share (non-GAAP) | $36.81 | $34.95 | $33.85 | $33.12 | $30.67 | [Efficiency Ratio and Adjusted Pre-Provision Net Revenue](index=22&type=section&id=Efficiency%20Ratio%20and%20Adjusted%20Pre-Provision%20Net%20Revenue) This section details the calculation and reconciliation of the non-GAAP efficiency ratio and adjusted pre-provision net revenue, which are used to assess operating expense management, revenue generation, and capital generation capabilities by excluding certain non-recurring items - The **efficiency ratio measures operating expense relative to revenue**, and adjustments are made to exclude non-recurring items for consistent comparability across periods[56](index=56&type=chunk) - **Adjusted noninterest expense provides insight into expense management**, while **adjusted pre-provision net revenue assesses the ability to generate capital**[56](index=56&type=chunk) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Noninterest expense (GAAP) (million) | $527 | $538 | $509 | $502 | $509 | | Total adjustments (million) | $6 | $5 | $0 | $3 | $3 | | Adjusted noninterest expense (non-GAAP) (million) | $521 | $533 | $509 | $499 | $506 | | Taxable-equivalent net interest income (non-GAAP) (million) | $661 | $635 | $639 | $632 | $608 | | Noninterest income (GAAP) (million) | $190 | $171 | $193 | $172 | $179 | | Adjusted taxable-equivalent revenue (non-GAAP) (million) | $837 | $800 | $821 | $798 | $784 | | Pre-provision net revenue (PPNR) (non-GAAP) (million) | $324 | $268 | $323 | $302 | $278 | | Adjusted PPNR (non-GAAP) (million) | $316 | $267 | $312 | $299 | $278 | | Efficiency ratio (non-GAAP) | 62.2 % | 66.6 % | 62.0 % | 62.5 % | 64.5 % | ```