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 % | ```

Company Overview - Zions Bancorporation, National Association is a diversified financial service provider headquartered in Salt Lake City, UT, with over 400 branches across 11 western states [11] - The company was founded in 1873 and operates in states including Utah, Idaho, California, Nevada, Arizona, Colorado, Texas, New Mexico, Washington, Oregon, and Wyoming [11] Investment Ratings - ZION is currently rated as 3 (Hold) on the Zacks Rank, indicating a neutral outlook [11] - The company has a VGM Score of B, suggesting a favorable combination of value, growth, and momentum [11][12] Momentum and Earnings Estimates - ZION has a Momentum Style Score of A, with shares increasing by 5% over the past four weeks [12] - For fiscal 2025, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate rising by $0.02 to $5.29 per share [12] - The company boasts an average earnings surprise of 9.5%, indicating a history of exceeding earnings expectations [12]

Financial Performance - Zions' net earnings to common shareholders increased from $143 million in 1Q24 to $190 million in 2Q24[16, 89] - The net interest margin improved by 4 basis points from 294% in 1Q24 to 298% in 2Q24[16, 39, 89] - The efficiency ratio improved from 679% in 1Q24 to 645% in 2Q24[16, 53, 90] - The annualized net charge-offs to loans ratio increased from 004% in 1Q24 to 010% in 2Q24[16, 18, 64, 89] Loan and Deposit Trends - Total loans increased by 05% from the end of 1Q24 to the end of 2Q24[16, 32, 33] - Customer deposits (excluding brokered deposits) decreased by 07% from the end of 1Q24 to the end of 2Q24[16, 22] - Period-end noninterest-bearing demand deposits declined by approximately $400 million, a 16% linked-quarter decrease[25] Capital and Credit Quality - The Common Equity Tier 1 (CET1) capital ratio increased from 104% in 1Q24 to 106% in 2Q24[16, 18, 89] - The allowance for credit losses was 124% of total loans and leases, a decrease of 3 basis points from 1Q24[62] Securities and Investments - The total securities portfolio and money market investments amounted to $196 billion and $32 billion, respectively, at the end of 2Q24[29] - Principal and prepayment-related cash flows from securities were $840 million for the quarter[30] Net Interest Income and Margin Outlook - Net interest income is expected to increase as asset repricing outpaces changes in funding costs[44] - Parallel interest rate shocks of -100 and +100 basis points suggest moderate rate sensitivity between +46% and +77%[45]

分组1 - Zions Bancorporation is a diversified financial service provider with over 400 branches across 11 western states in the U.S. [12] - The company holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [12]. - Zions has a Value Style Score of A, supported by a forward P/E ratio of 9.36, making it attractive for value investors [13]. 分组2 - In the last 60 days, two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.02 to $5.29 per share [13]. - The company has an average earnings surprise of 9.5%, suggesting a positive trend in earnings performance [13]. - With a strong Zacks Rank and top-tier Value and VGM Style Scores, Zions is recommended for investors' consideration [13].

Summary of the Conference Call Company and Industry Overview - The conference call involved Zion, a bank focused on serving small and medium-sized businesses across various states in the U.S. [4][10] - The discussion highlighted the impact of tariffs and economic uncertainty on customer sentiment, particularly among small and medium-sized enterprises (SMEs) [4][5]. Key Points and Arguments Customer Sentiment and Economic Environment - Customer sentiment remains uncertain due to ongoing tariff threats, affecting approximately 65% to 70% of Zion's revenue from SMEs [4][5]. - SMEs are likely to increase inventory and shift supply chains back to the U.S. as a precaution against tariffs, which could positively influence loan growth [6][8]. - Large companies are hesitant to commit to long-term capital investments due to economic volatility and uncertainty [7][8]. Loan Growth and Business Strategy - Zion's loan growth is currently moderate, with a focus on commercial lending, which constitutes about 50% of the loan portfolio [16][17]. - The bank aims to increase its Small Business Administration (SBA) lending, targeting 1,500 loans this year, up from 700, with a goal of reaching 3,000 loans in the next 12 to 18 months [18][19][20]. - The bank's strategy includes deepening relationships with existing customers, as 70% of small businesses do not currently borrow from banks [23][25]. Competition and Market Position - Zion faces competition from both regional and large banks, as well as private credit providers. However, the bank is confident in its ability to compete based on strong customer relationships and service [33][36][40]. - The bank's competitive advantage lies in its relationship management, which is supported by high customer satisfaction scores from Greenwich Research [46][47]. Deposit and Interest Income Management - Zion has experienced five consecutive quarters of net interest margin (NIM) expansion, attributed to a strong deposit franchise and effective management of deposit costs [50][51]. - The bank's cost of deposits is among the lowest in the industry, with a significant portion being non-interest-bearing deposits [51][52]. - The bank anticipates further reductions in deposit costs as time deposits roll over and stabilize [55][56]. Fee Income and Growth Opportunities - Zion's fee income is diversified, with treasury management services contributing about 30% of total fees. The bank expects moderate growth in this area [61][62]. - The capital markets business has shown significant growth, with revenues increasing from $70 million to $107 million, indicating strong potential for future revenue generation [64][66]. Credit Quality and Risk Management - Zion has maintained a low net charge-off ratio of about 10 basis points, significantly better than many peers, due to strong underwriting practices [68][69]. - The bank's commercial real estate (CRE) portfolio has shown resilience, with negligible losses despite rising classified loans [71][73]. Capital Management - Zion is focused on maintaining a strong Common Equity Tier 1 (CET1) ratio, with transparency regarding the impact of accumulated other comprehensive income (AOCI) on capital [75][76]. - The bank is well-positioned to meet regulatory requirements and maintain capital buffers [77][79]. Additional Important Insights - The bank's modernization efforts, including a core transformation project, have allowed bankers to focus more on client relationships rather than internal systems [28][30]. - Zion's proactive marketing strategy aims to enhance its small business initiatives and overall fee income growth [32][66]. This summary encapsulates the key insights and strategic directions discussed during the conference call, providing a comprehensive overview of Zion's current position and future outlook in the banking industry.

Core Viewpoint - Zions Bancorporation's shares have experienced volatility similar to the broader banking industry but have largely recovered from significant losses incurred earlier in the year [1]. Group 1: Company Performance - The company has shown resilience in its stock performance, recovering from heavy losses following market fluctuations [1]. Group 2: Investment Strategy - A long-term, buy-and-hold investment approach is favored, particularly for stocks that can consistently deliver high-quality earnings, often found in the dividend and income sectors [1].

Group 1 - Zions Bancorporation's shares have increased by 9% over the past year, aligning with market performance, but have significantly declined from their peak levels [1] - Regional banks were among the biggest beneficiaries following President Trump's policies [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories for achieving outsized returns with a favorable risk/reward profile [1]

Company Overview - Zions Bancorporation, N.A. is a leading financial services company with approximately $89 billion in total assets as of December 31, 2024 [2] - The company reported annual net revenue of $3.1 billion in 2024 [2] - Zions operates in 11 western states under local management teams and distinct brands, including Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming [2] Industry Position - Zions Bancorporation is recognized for its excellence in small- and middle-market banking, consistently receiving national and state-wide customer survey awards [2] - The company is also a leader in public finance advisory services and Small Business Administration lending [2] - Zions is included in the S&P MidCap 400 and NASDAQ Financial 100 indices, highlighting its significant presence in the financial sector [2] Upcoming Events - Scott McLean, President and COO of Zions Bancorporation, will present at the Morgan Stanley US Financials Conference on June 10th at 12:15 pm Eastern [1] - An audio webcast of the session will be available on the Zions Bancorporation website, with a replay accessible after the event [1]

Financial Performance - Net earnings applicable to common shareholders increased, with diluted EPS rising to $1.13 from $0.96 in the first quarter of 2024, reflecting a growth of approximately 18%[19]. - Net income for the period rose to $170 million in Q1 2025, up from $153 million in Q1 2024, marking an increase of 11.1%[186]. - Basic earnings per common share increased to $1.13 for Q1 2025, compared to $0.96 for Q1 2024, representing an increase of 17.7%[185]. - Comprehensive income for the period was $300 million in Q1 2025, compared to $236 million in Q1 2024, reflecting a growth of 27.1%[186]. - Net cash provided by operating activities decreased to $179 million in Q1 2025 from $261 million in Q1 2024, a decline of 31.4%[188]. Revenue and Income Sources - Net interest income grew by $38 million, or 6%, compared to the prior year, driven by lower funding costs and a favorable mix in average interest-earning assets[20]. - Customer-related noninterest income increased by $6 million, or 4%, driven by higher loan-related fees and improved capital markets income[23]. - Noninterest income increased to $171 million for the three months ended March 31, 2025, compared to $156 million in the same period of 2024, an increase of 9.6%[185]. - Noninterest expense increased by $12 million, or 2%, mainly due to higher salaries and technology expenses[23]. Loan and Deposit Growth - Total loans and leases increased by $1.8 billion, or 3%, primarily due to growth in the consumer 1-4 family residential mortgage and commercial and industrial loan portfolios[20]. - Total deposits rose by $1.5 billion, or 2%, with customer deposits (excluding brokered deposits) totaling $70.9 billion, compared to $69.9 billion[20]. - Average loans and leases increased by $1.7 billion, or 3%, to $59.6 billion, primarily due to growth in consumer and commercial loans[35]. - Average deposits increased by $1.5 billion, or 2%, to $74.9 billion, with interest-bearing deposits rising by $2.9 billion, or 6%[39]. Credit Quality and Loss Provisions - The provision for credit losses was $18 million, an increase from $13 million in the prior year period, reflecting a cautious approach to potential credit risks[20]. - Nonperforming assets totaled $307 million, or 0.51% of total loans and leases, up from $254 million, or 0.44% in the prior year[23]. - The allowance for credit losses (ACL) was $743 million, with a ratio of ACL to total loans and leases at 1.24%, down from 1.27% a year earlier[47]. - Classified loans totaled $2.9 billion, or 4.82% of total loans and leases, up from $966 million, or 1.66% in the prior year[23]. Capital and Equity - Total shareholders' equity increased by $203 million, or 3%, to $6.3 billion at March 31, 2025, compared to $6.1 billion at December 31, 2024[166]. - Common equity tier 1 capital increased by 7% to $7.4 billion compared to $6.9 billion in the prior year period[175]. - The common equity tier 1 capital ratio improved to 10.8%, up from 10.4%[175]. - Tangible book value per common share rose to $34.95, compared to $29.34 in the previous year[181]. Efficiency and Cost Management - The efficiency ratio improved, indicating better cost management relative to revenue generation[19]. - Adjusted noninterest expense increased by $22 million, or 4%, with an efficiency ratio of 66.6%, down from 67.9%[61]. - The efficiency ratio for the three months ended March 31, 2025, was 66.6%, compared to 62.0% in the previous quarter[183]. Investment and Securities - The amortized cost of total investment securities decreased by $216 million, or 1%, from December 31, 2024, primarily due to principal reductions[70]. - The carrying value of held-to-maturity investment securities was $9,481 million with an estimated fair value of $9,400 million as of March 31, 2025[204]. - Total assets measured at fair value as of March 31, 2025, amounted to $10,593 million, with $1,123 million classified as Level 1[198]. Tax and Regulatory Compliance - An increase of $16 million in income tax expense negatively impacted EPS by $0.11 per share due to a revaluation of deferred tax assets from newly enacted Utah state tax legislation[20]. - The effective tax rate rose to 28.9% for Q1 2025, up from 24.6% in Q1 2024, largely due to new Utah state tax legislation[64]. - The company exceeded all capital adequacy requirements under the Basel III capital rules as of March 31, 2025[173]. Market and Economic Conditions - The company continues to manage interest rate risk through strategies such as interest rate swaps and investments in fixed-rate securities, adapting to changes in customer deposit behavior due to the higher interest rate environment[136][139]. - Earnings at Risk (EaR) for a +200 bps parallel shift in rates is estimated at 7.6% as of March 31, 2025, compared to 8.7% for December 31, 2024[144]. - Economic Value of Equity (EVE) is projected to decrease by 5.9% under a +200 bps parallel shift in rates as of March 31, 2025[144].