Core Viewpoint - Zions Bancorporation reported a strong financial performance in Q1 2025, with net earnings of $169 million, reflecting an 18% increase from the previous year, driven by improved net interest margins and adjusted pre-provision net revenue [1][2]. Financial Performance - Net earnings applicable to common shareholders for Q1 2025 were $169 million, or $1.13 per diluted common share, compared to $143 million, or $0.96 per diluted common share in Q1 2024, and $200 million, or $1.34 per diluted common share in Q4 2024 [1]. - The net interest margin increased by 16 basis points, and adjusted pre-provision net revenue rose by 10% [2]. - A tax law change in Utah resulted in a charge of $0.11 per share to income tax expense, but is expected to accrete back into income over time [2]. Strategic Developments - The acquisition of four branches in California's Coachella Valley added approximately $630 million in deposits and $420 million in loans [2]. - The company aims to enhance service to new customers through its affiliate, California Bank & Trust [2]. Credit Quality - Credit quality remained stable, with nonperforming assets at 0.51% of loans and leases and annualized net charge-offs at 0.11% [2]. - The company expressed confidence in its credit culture and reserves to manage potential economic turbulence [2]. Company Overview - Zions Bancorporation reported annual net revenue of $3.1 billion in 2024 and total assets of approximately $89 billion as of December 31, 2024 [4]. - The company operates under local management teams in 11 western states and is recognized for its customer service in small- and middle-market banking [4].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [First Quarter 2025 Performance Summary](index=1&type=section&id=First%20Quarter%202025%20Performance%20Summary) Zions Bancorporation achieved an 18% increase in Q1 2025 net earnings to **$169 million**, with diluted EPS of **$1.13**, driven by margin expansion and PPNR growth, despite a one-time **$16 million** tax expense Q1 2025 vs. Q1 2024 Earnings Comparison | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Earnings | $169 million | $143 million | | Diluted EPS | $1.13 | $0.96 | Q1 2025 Key Financial Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Net Interest Income | $624 million | +6% | | Net Interest Margin (NIM) | 3.10% | +16 bps | | Adjusted PPNR | $267 million | +10% | | Loans and Leases | $59.9 billion | +3% | | Total Deposits | $75.7 billion | +2% | | CET1 Capital Ratio (Est.) | 10.8% | +40 bps | - A notable item for the quarter was an additional income tax expense of **$16 million**, or **$0.11 per share**, due to the revaluation of Deferred Tax Assets (DTAs) resulting from new state tax legislation[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Harris H. Simmons emphasized an 18% net income increase, margin expansion, and successful branch acquisition, while noting a one-time tax charge and expressing caution on the economic outlook - The CEO noted that the **$0.11 per share** tax charge is due to a beneficial Utah tax law change, and most of this charge is expected to accrete back into income over the life of the associated securities[4](index=4&type=chunk) - In late March, the company completed the acquisition of four branches from FirstBank of Denver, adding approximately **$630 million** in deposits and **$420 million** in loans[4](index=4&type=chunk) - Credit quality was described as being in "very good shape," with nonperforming assets stable at **0.51%** of loans and annualized net charge-offs at **0.11%**, however, the economic outlook is viewed as more uncertain[4](index=4&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased **6%** to **$624 million** in Q1 2025, with net interest margin expanding by **16 basis points** to **3.10%**, driven by lower funding costs and a favorable asset mix Net Interest Income and Margin (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $624M | $586M | +$38M (+6%) | | Net Interest Margin | 3.10% | 2.94% | +16 bps | | Yield on Earning Assets | 5.08% | 5.25% | -17 bps | | Cost of Deposits | 1.76% | 2.06% | -30 bps | - The increase in NII was primarily driven by lower funding costs, as the rate paid on total deposits and interest-bearing liabilities decreased **33 basis points** YoY to **2.01%**[9](index=9&type=chunk)[11](index=11&type=chunk) - Average interest-earning assets grew by **$1.4 billion** YoY, led by a **$1.7 billion** increase in average loans and a **$1.3 billion** increase in money market investments, which was partially offset by a **$1.7 billion** decline in average securities[12](index=12&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Total noninterest income rose **10%** year-over-year to **$171 million**, primarily due to a **$9 million** increase in noncustomer-related income from securities gains and a **4%** rise in customer-related fees Noninterest Income Breakdown (Q1 2025 vs. Q1 2024) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Customer-related | $158M | $152M | +$6M (+4%) | | Noncustomer-related | $13M | $4M | +$9M (NM) | | **Total Noninterest Income** | **$171M** | **$156M** | **+$15M (+10%)** | - The increase in noncustomer-related income was mainly due to an **$8 million** rise in net securities gains, largely from valuation adjustments in the Small Business Investment Company (SBIC) portfolio[15](index=15&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense increased **2%** to **$538 million**, driven by higher salaries and technology costs, but offset by a **$12 million** decrease in deposit insurance, improving the efficiency ratio to **66.6%** Noninterest Expense Breakdown (Q1 2025 vs. Q1 2024) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $342M | $331M | +$11M (+3%) | | Technology, telecom, etc. | $70M | $62M | +$8M (+13%) | | Deposit insurance & regulatory | $22M | $34M | -$12M (-35%) | | **Total Noninterest Expense** | **$538M** | **$526M** | **+$12M (+2%)** | - The decrease in deposit insurance expense was mainly due to a **$13 million** accrual in the prior-year quarter related to an updated FDIC special assessment estimate[17](index=17&type=chunk) - The efficiency ratio improved to **66.6%** from **67.9%** in Q1 2024, as revenue growth outpaced the increase in adjusted noninterest expense[17](index=17&type=chunk) [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet%20Analysis) [Investment Securities](index=5&type=section&id=Investment%20Securities) Total investment securities declined **7%** year-over-year to **$18.7 billion** due to principal reductions, with the portfolio structured to provide liquidity through secured borrowing agreements Investment Securities Portfolio (As of March 31) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Available-for-sale (fair value) | $9,223M | $9,931M | -$708M (-7%) | | Held-to-maturity (amortized cost) | $9,481M | $10,209M | -$728M (-7%) | | **Total Investment Securities** | **$18,704M** | **$20,140M** | **-$1,436M (-7%)** | [Loans and Leases](index=5&type=section&id=Loans%20and%20Leases) Total loans and leases increased **3%** year-over-year to **$59.9 billion**, driven by growth in consumer and commercial loans, including **$420 million** from a branch acquisition Loans and Leases by Category (As of March 31) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Commercial | $31,010M | $30,479M | +$531M (+2%) | | Commercial Real Estate | $13,593M | $13,578M | +$15M (Flat) | | Consumer | $15,338M | $14,052M | +$1,286M (+9%) | | **Total Loans and Leases** | **$59,941M** | **$58,109M** | **+$1,832M (+3%)** | - The loan portfolio at March 31, 2025 includes about **$420 million** in consumer and commercial loans from the acquisition of four FirstBank branches in California[20](index=20&type=chunk) [Credit Quality](index=6&type=section&id=Credit%20Quality) Credit quality deteriorated year-over-year with provision for credit losses at **$18 million** and nonperforming assets at **0.51%**, while classified loans significantly increased to **$2.9 billion** due to stricter risk grading in the CRE portfolio Key Credit Quality Metrics (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Provision for credit losses | $18M | $13M | | Net loan & lease charge-offs | $16M | $6M | | Nonperforming assets | $307M | $254M | | Classified loans | $2,891M | $966M | | Ratio of ACL to loans | 1.24% | 1.27% | | Ratio of NPA to loans | 0.51% | 0.44% | - The increase in classified loans was primarily in multifamily and industrial CRE portfolios, largely due to an increased emphasis in risk grading on current cash flows over collateral values and guarantor strength[23](index=23&type=chunk) - Weaker performance in the 2021-2023 construction loan vintages also contributed to the rise in classified loans, as borrowers faced challenges from longer lease-up periods, higher costs, and elevated interest rates[23](index=23&type=chunk) [Deposits and Borrowed Funds](index=7&type=section&id=Deposits%20and%20Borrowed%20Funds) Total deposits grew **2%** to **$75.7 billion**, including **$630 million** from an acquisition, while total borrowed funds decreased **18%** to **$4.4 billion** due to reduced short-term borrowings Deposits and Borrowed Funds (As of March 31) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Noninterest-bearing demand | $24,792M | $25,137M | -$345M (-1%) | | Total interest-bearing | $50,900M | $49,100M | +$1,800M (+4%) | | **Total Deposits** | **$75,692M** | **$74,237M** | **+$1,455M (+2%)** | | Short-term borrowings | $3,476M | $4,895M | -$1,419M (-29%) | | Long-term debt | $964M | $544M | +$420M (+77%) | | **Total Borrowed Funds** | **$4,440M** | **$5,439M** | **-$999M (-18%)** | - Customer deposits (excluding brokered) totaled **$70.9 billion**, up from **$69.9 billion** a year ago, with the loan-to-deposit ratio at **79%**, compared to **78%** in the prior year quarter[25](index=25&type=chunk) [Shareholders' Equity and Capital](index=8&type=section&id=Shareholders%27%20Equity%20and%20Capital) Total shareholders' equity increased **9%** to **$6.3 billion**, with the estimated CET1 capital ratio improving to **10.8%**, supported by retained earnings and a **$359 million** AOCI loss reduction, alongside share repurchases and dividend increase Shareholders' Equity Components (As of March 31) | Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Retained Earnings | $6,805M | $6,293M | +$512M (+8%) | | AOCI (loss) | ($2,250M) | ($2,609M) | +$359M (+14%) | | **Total Shareholders' Equity** | **$6,327M** | **$5,829M** | **+$498M (+9%)** | - The estimated CET1 capital ratio was **10.8%**, up from **10.4%** in the prior year period, and tangible book value per common share increased significantly to **$34.95** from **$29.34**[30](index=30&type=chunk) - During Q1 2025, the company repurchased **0.8 million** common shares for **$41 million** and paid a common dividend of **$0.43 per share**, an increase from **$0.41** in Q1 2024[27](index=27&type=chunk)[28](index=28&type=chunk) [Financial Statements and Supplemental Data](index=12&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) [Consolidated Financial Highlights](index=12&type=section&id=Consolidated%20Financial%20Highlights) This section presents a five-quarter summary of key financial data, highlighting a recovery in net interest margin and return on equity, alongside a strengthening CET1 capital ratio Five-Quarter Trend Highlights | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | $1.13 | $1.34 | $1.37 | $1.28 | $0.96 | | Net Interest Margin | 3.10% | 3.05% | 3.03% | 2.98% | 2.94% | | CET1 Capital Ratio | 10.8% | 10.9% | 10.7% | 10.6% | 10.4% | | Return on Avg. Common Equity | 11.1% | 13.2% | 14.1% | 14.0% | 10.9% | [Loan Portfolio Analysis](index=17&type=section&id=Loan%20Portfolio%20Analysis) The loan portfolio is primarily commercial (**52%**), with nonperforming assets totaling **$307 million** (**0.51%** of loans), and net charge-offs of **$16 million** driven by the commercial and industrial segment Loan Portfolio Composition (March 31, 2025) | Loan Category | Balance (in millions) | % of Total | | :--- | :--- | :--- | | Commercial | $31,010 | 51.7% | | Commercial Real Estate | $13,593 | 22.7% | | Consumer | $15,338 | 25.6% | | **Total Loans & Leases** | **$59,941** | **100.0%** | Nonaccrual Loans by Type (March 31, 2025) | Loan Category | Nonaccrual Balance (in millions) | | :--- | :--- | | Commercial | $158 | | Commercial Real Estate | $58 | | Consumer | $89 | | **Total Nonaccrual Loans** | **$305** | [Non-GAAP Financial Measures](index=21&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Measures](index=21&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Reconciliations of non-GAAP measures are provided to clarify operational performance, with Q1 2025 adjusted PPNR at **$267 million**, an efficiency ratio of **66.6%**, and tangible book value per common share at **$34.95** - The company uses non-GAAP measures like tangible common equity, adjusted PPNR, and the efficiency ratio to assess performance on a basis consistent with management and industry practices[46](index=46&type=chunk)[48](index=48&type=chunk)[53](index=53&type=chunk) Q1 2025 Adjusted PPNR and Efficiency Ratio Reconciliation | Metric | Amount (in millions) | | :--- | :--- | | **Adjusted Taxable-Equivalent Revenue (non-GAAP)** | **$800** | | Less: Adjusted Noninterest Expense (non-GAAP) | $533 | | **Adjusted PPNR (non-GAAP)** | **$267** | | **Efficiency Ratio (non-GAAP)** | **66.6%** | Tangible Book Value Per Common Share (non-GAAP) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Tangible common equity | $5,157M | $4,332M | | Tangible book value per common share | $34.95 | $29.34 |

The upcoming report from Zions (ZION) is expected to reveal quarterly earnings of $1.20 per share, indicating an increase of 16.5% compared to the year-ago period. Analysts forecast revenues of $808.26 million, representing an increase of 7.5% year over year.The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a com ...

Zions (ZION) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 21. On the ...

Core Insights - Vectra Bank Colorado has appointed Jamie Burt as the Community Banking team leader for Colorado Springs and Pueblo, focusing on community and business growth [1][2] Group 1: Leadership and Experience - Jamie Burt brings over 40 years of banking experience, with a recent role in a Commercial Real Estate team at a major national bank, emphasizing his expertise in deal structuring and middle market knowledge [2] - Burt values teamwork, patience, and listening, aiming to enhance Vectra's existing team and engage more with the local community [2] Group 2: Personal Background - Since relocating to Colorado in 2016, Burt has embraced local activities such as boating and cycling, and he has a family with two grown children and a recently welcomed grandchild [2][3] Group 3: Educational Background - Burt holds a BA in Economics from Wheaton College and graduated from the Graduate School of Banking at the University of Wisconsin, Madison in 2008 [3] Group 4: Company Overview - Vectra Bank Colorado has assets totaling $4 billion and operates 34 locations in Colorado and one in New Mexico, focusing on small, middle-market, and corporate clients [4] - The bank is part of Zions Bancorporation, which is included in the S&P 400 Mid-Cap and NASDAQ Financial 100 indices [4]

Core Insights - California Bank & Trust (CB&T) is expanding its presence in the Coachella Valley through the acquisition of FirstBank's California banking operations, integrating four newly converted branches to enhance its service offerings [1][4] - The Grand Opening Celebration is scheduled for March 24, 2025, at the Palm Desert branch, inviting community members to participate in networking and festivities [3][6] - CB&T emphasizes a seamless transition for clients and employees, maintaining high customer service standards and retaining familiar staff in the newly converted branches [4][6] Company Commitment - CB&T is deepening its investment in the Coachella Valley by engaging in community partnerships and supporting local events such as the Coachella Valley Firebirds and Fashion Week El Paseo [5][6] - The bank aims to build meaningful relationships within the community, recognizing that the strength of a community lies in its people and businesses [6] Company Background - CB&T has been serving California families and businesses for over 70 years, providing personalized banking solutions with local decision-making [8] - The bank has received multiple accolades, including being voted "Best Bank" by San Diego Union-Tribune readers for 14 consecutive years and recognized for excellence in Middle-Market and Small Business banking [9]

Core Viewpoint - Zions Bancorporation has shown relatively sound operational performance but has not been immune to the recent turbulence affecting bank stocks [1] Group 1: Company Performance - Despite the recent market turbulence, Zions Bancorporation had been a strong performer in the months following the turbulence [1] - The company is favored for a long-term, buy-and-hold investment strategy, particularly for stocks that can sustainably post high-quality earnings [1] Group 2: Investment Strategy - The investment approach focuses on dividend and income stocks, indicating a preference for stable and reliable earnings [1]

Core Viewpoint - Zions (ZION) is currently considered a more attractive option for value investors compared to First Hawaiian (FHB) based on various valuation metrics [7]. Valuation Metrics - ZION has a forward P/E ratio of 8.74, while FHB has a forward P/E of 12.86 [5]. - ZION's PEG ratio is 1.37, indicating a more favorable growth expectation compared to FHB's PEG ratio of 3.02 [5]. - ZION's P/B ratio stands at 1.15, compared to FHB's P/B of 1.24, suggesting ZION is more undervalued relative to its book value [6]. - ZION has earned a Value grade of B, while FHB has a Value grade of D, further supporting ZION's position as the superior value option [6]. Earnings Outlook - Both ZION and FHB have a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3].

Financial Performance - Zions Bancorporation reported annual net revenue of $3.1 billion for 2024 and total assets of approximately $89 billion as of December 31, 2024[17]. - Total net revenue for 2024 was $3.13 billion, relatively flat compared to $3.12 billion in 2023, with net interest income remaining stable at $2.43 billion[176]. - Diluted EPS for 2024 increased to $4.95, up 14% from $4.35 in 2023, benefiting from lower provision for credit losses and higher noninterest income[170]. - Provision for credit losses decreased by 45% to $72 million in 2024, compared to $132 million in 2023[176]. - Noninterest income rose by 3% to $700 million in 2024, largely due to increases in capital markets fees and commercial account fees[176]. - Total deposits grew by $1.3 billion, or 2%, reaching $76.22 billion, primarily due to an increase in interest-bearing deposits[172]. - The efficiency ratio for 2024 was 64.2%, compared to 62.9% in 2023, reflecting an increase in adjusted noninterest expense[176]. - Common equity increased by 15% to $6.06 billion at year-end 2024, compared to $5.25 billion in 2023[176]. Capital Adequacy - At December 31, 2024, Zions Bancorporation exceeded all capital adequacy requirements under the Basel III capital rules, with a Common Equity Tier 1 (CET1) ratio of 10.9%, significantly above the minimum requirement of 4.5%[28][35]. - The bank's Tier 1 risk-based capital ratio was 11.0%, exceeding the minimum requirement of 6.0%[35]. - Total risk-based capital ratio stood at 13.3%, well above the minimum requirement of 8.0%[35]. - Zions Bancorporation does not currently qualify as a large banking organization but has total assets of $88.8 billion as of December 31, 2024, which may subject it to new capital requirements if it exceeds $100 billion in total assets[38][39]. - Proposed long-term debt requirement for banks with $100 billion or more in total assets is 6% of total risk-weighted assets, 2.5% of total leverage exposure, or 3.5% of average total assets, with an estimated incremental debt of approximately $3.1 billion required over three years if assets reach the threshold[40]. Regulatory Compliance - The bank is subject to various regulatory requirements, including those from the OCC, CFPB, and FDIC, which influence its operations and capital management[25][26]. - The bank plans to file its first informational submission regarding resolution planning in late 2025, as required by new FDIC regulations[36]. - Compliance with the CFPB's new data access requirements is expected by April 1, 2027, with the bank preparing for implementation amid ongoing lawsuits[50][51]. - The company faces heightened regulatory compliance costs, which may impact its business activities and financial performance[119]. - Regulatory requirements may limit the company's ability to increase dividends or repurchase shares, as capital transactions are subject to approval by the OCC[113]. Risk Management - The company has developed comprehensive policies to manage various risks, including credit, interest rate, and operational risks[72]. - The company utilizes models for managing credit losses, interest rate, and liquidity risks, but acknowledges that these models may lead to suboptimal decisions due to inaccuracies, particularly highlighted by customer deposit behavior changes in 2023[102]. - The allowance for credit losses (ACL) increased to $741 million at December 31, 2024, from $729 million at December 31, 2023, reflecting credit quality deterioration and higher reserves for portfolio-specific risks, particularly in commercial real estate[194]. - Rising interest rates and increased market volatility could lead to deterioration in credit quality, impacting income from loan and investment portfolios and necessitating higher charge-offs[74]. - The company faces operational risks from third-party suppliers, which could adversely impact business performance and customer service delivery[103]. - Cybersecurity risks have increased significantly, with ongoing attempts by threat actors to penetrate the company's systems, necessitating continuous investment in security measures[107]. Employee and Workforce - The bank had 9,406 full-time equivalent employees as of December 31, 2024, with 58% being women and 38% identifying as part of a minority demographic[61]. - Over 1,500 training options were offered in 2024, with more than 1,000 training experiences hosted to support employee skill development and career advancement[67]. - The company is committed to fair and equitable compensation, with a recent independent review showing no meaningful differences in pay levels across its workforce[70]. - The company faces challenges in recruiting and retaining qualified personnel due to increased competition and regulatory limitations on compensation[93]. - Full-time equivalent employees decreased by approximately 3% to 9,406 at December 31, 2024[210]. Technology and Innovation - The company completed the final phase of a multi-year project to replace core loan and deposit banking systems in July 2024, aiming to enhance products and services[95]. - The company is investing in technological advancements to remain competitive against both traditional banks and emerging fintech companies[96]. - Total technology spend decreased by $17 million, or 4%, relative to the prior year, as certain capitalized technology investments decreased[212]. Environmental and Social Responsibility - Sustainability practices include LEED Platinum-certified facilities and financing renewable energy projects, reflecting the bank's commitment to environmental responsibility[55]. - The evolving regulatory focus on climate change may impose additional requirements on Zions regarding the management and disclosure of climate-related risks[138]. Market Conditions - The company’s financial performance is highly correlated with local economic conditions, particularly in states vulnerable to natural disasters and climate change[79]. - Protracted congressional negotiations regarding government funding may introduce volatility into the U.S. economy, affecting capital and credit markets[139]. - The company experienced heightened volatility in deposit levels and funding costs following notable bank closures in 2023, which could materially affect liquidity and operating margins[86].

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] - The bank is recognized for its performance in small- and middle-market banking and is 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 [2] Recent Developments - The board of directors of Zions Bancorporation has authorized a share repurchase program for fiscal year 2025, allowing for the repurchase of up to $40 million in shares [1]