Financial Review ZIONS FOURTH QUARTER 2025 J a n u a r y 2 0 , 2 0 2 6 FORWARD-LOOKING STATEMENTS; USE OF NON-GAAP FINANCIAL MEASURES Forward-Looking Information This presentation contains "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and assumptions regarding future events and outcomes. However, they are inherently subject to known and unknown risks, uncertainties, and other factors that could c ...

Financial Performance - 4Q25 net earnings were $262 million, with diluted EPS of $1.76, a 31% increase from 4Q24's $200 million and $1.34 EPS[1] - Annual net earnings for 2025 reached $895 million, up 21% from 2024's $737 million, with diluted EPS increasing from $4.95 to $6.01[1] - Net income for 2025 reached $899 million, representing a 14.7% increase from $784 million in 2024[38] - Net earnings applicable to common shareholders increased to $262 million in Q4 2025, up from $221 million in Q3 2025, representing an increase of 18.6%[35] - Net income for the quarter reached $263 million, compared to $222 million in the prior quarter, marking an 18.5% increase[37] Revenue and Income - Adjusted taxable-equivalent revenue for 4Q25 was $879 million, a 7.1% increase from the prior year, while adjusted noninterest expense rose 7.7% to $548 million[4] - Total noninterest income rose to $208 million in Q4 2025, compared to $189 million in Q3 2025, an increase of 10.0%[35] - Total noninterest income rose to $758 million in 2025, reflecting an increase of 8.3% compared to $700 million in 2024[38] - Customer-related noninterest income was $177 million in 4Q25, up 1% from 4Q24, while total noninterest income increased by 10% to $208 million[12] Loans and Credit Quality - Total loans and leases grew to $60.9 billion, a 3% increase from the previous quarter, with an annualized net loan and lease charge-off ratio of 0.05%[4] - The provision for credit losses was $6 million in 4Q25, significantly lower than $41 million in 4Q24, indicating improved credit quality[4] - The provision for loan losses for Q4 2025 was $6 million, down from $45 million in Q3 2025[41] - The ratio of nonperforming assets to loans and leases was 0.52% as of December 31, 2025, slightly down from 0.54% in the previous quarter[40] - The company reported net loan and lease charge-offs of $7 million for Q4 2025, with an annualized ratio of 0.05% to average loans[41] Deposits and Funding - Total deposits were $75.6 billion, down 1% from the previous quarter, while customer deposits (excluding brokered deposits) increased by 1% to $71.8 billion[4] - Total deposits rose to $75,644 million, an increase of 1.0% from $74,878 million in the previous quarter[36] - Total borrowed funds decreased by $206 million, or 4%, primarily due to a reduction in short-term advances[25] - Total liabilities stood at $81,810 million, a slight increase from $81,668 million in the previous quarter[36] Capital and Equity - The estimated Common Equity Tier 1 (CET1) capital ratio improved to 11.5%, up from 10.9% a year ago, reflecting strengthened capital position[4] - Total shareholders' equity increased to $7.18 billion, up 5% from $6.87 billion in the previous quarter and up 17% from $6.12 billion year-over-year[26] - Tangible book value per common share rose 21% to $40.79, indicating significant growth in shareholder equity[4] - Estimated common equity tier 1 (CET1) capital was $7.9 billion, an increase of 8% from $7.4 billion in the prior year, with a CET1 capital ratio of 11.5%, up from 10.9%[28] Expenses and Efficiency - Noninterest expense increased by $37 million, or 7%, compared to the prior year quarter, driven by a $20 million increase in marketing and business development expenses[15] - Adjusted noninterest expense rose by $39 million, or 8%, with an efficiency ratio of 62.3%, slightly up from 62.0%[16] - The efficiency ratio for Q4 2025 was 62.3%, compared to 59.6% in Q3 2025, indicating a decline in efficiency[35] - Noninterest expense (GAAP) for the three months ended December 31, 2025, was $546 million, an increase from $509 million in the same period of 2024[53] Assets and Investment - Total assets reached $88.990 billion as of December 31, 2025, compared to $88.533 billion at September 30, 2025, reflecting a growth of 0.5%[35] - Total investment securities decreased by $690 million, or 4%, to $18.1 billion, primarily due to principal reductions[17] - Total assets increased to $89,554 million as of December 31, 2025, compared to $88,823 million in 2024, reflecting a growth of 0.82%[45] - Total interest-earning assets amounted to $83,261 million with a net interest margin of 3.31% for the quarter, up from 3.28% in the prior quarter[44]

Core Viewpoint - Analysts project Zions (ZION) will report quarterly earnings of $1.57 per share, a 17.2% increase year over year, with revenues expected to reach $864.41 million, up 3.9% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been adjusted downward by 0.2% over the past 30 days, indicating a reassessment by covering analysts [1][2]. Key Metrics Projections - Analysts estimate the 'Net interest margin' will be 3.3%, up from 3.1% in the same quarter last year [4]. - The 'Efficiency Ratio' is projected to be 61.2%, compared to 62.0% a year ago [4]. - The 'Average balance - Total interest-earning assets' is expected to be $82.88 billion, down from $83.24 billion in the same quarter last year [5]. - 'Total nonperforming assets' are estimated at $330.67 million, up from $298.00 million a year ago [5]. - The 'Tier 1 leverage ratio' is projected to be 8.8%, compared to 8.3% in the same quarter last year [6]. - 'Total nonaccrual Loan' is expected to reach $325.61 million, up from $297.00 million a year ago [6]. - The 'Total risk-based capital ratio' is estimated at 13.8%, compared to 13.3% a year ago [6]. - The 'Tier 1 risk-based capital ratio' is projected to be 11.4%, up from 11.0% in the same quarter last year [7]. - 'Total Noninterest Income' is expected to be $181.01 million, down from $193.00 million a year ago [7]. - 'Commercial account fees' are estimated at $47.84 million, slightly up from $47.00 million a year ago [7]. - 'Other customer-related fees' are projected to be $14.44 million, up from $14.00 million a year ago [8]. - 'Card fees' are expected to reach $24.40 million, compared to $24.00 million a year ago [8]. Stock Performance - Zions shares have returned -1.4% over the past month, while the Zacks S&P 500 composite has increased by +2.1% [9].

Group 1: Investment Activity - David Tepper has purchased 285,000 shares of Zions Bancorporation (ZION) valued at $16.1 million as of Q3 2025 [1] - The average price target for ZION suggests an upside of 6%, with the Street high indicating an upside of 26% [1] Group 2: Analyst Ratings - Anthony Elian from JPMorgan maintains a Neutral rating on ZION with a price target increase from $62 to $67, citing solid upside potential for regional banks in 2026 [2] - Matthew Clark from Piper Sandler reiterated a Hold recommendation on ZION with a price target of $63 [3] Group 3: Corporate Update - Paul Burdiss, President and CEO of the Zions Bank segment, will retire effective December 31, 2025, and will be succeeded by Nathan Callister, the bank's Executive Vice President and Executive Director of Commercial Banking [4] Group 4: Company Overview - Zions Bancorporation is a Utah-based regional bank that provides commercial and small business banking, retail banking, investment banking, real estate financing, and wealth management services [5]

Core Viewpoint - Zions Bank is undergoing a leadership change with Paul Burdiss retiring as CEO after a brief tenure, and Nate Callister appointed as his successor, indicating a shift in management strategy within the bank [1][2]. Group 1: Leadership Transition - Paul Burdiss will retire effective December 31, 2024, after serving as CEO since April 2024 [1]. - Nate Callister, previously the executive vice president and executive director of commercial banking, will take over as CEO [1][4]. - Burdiss will assist in the transition process to ensure a smooth leadership change [2]. Group 2: Background of Leaders - Burdiss joined Zions in 2015 as CFO and has a background with Comerica and SunTrust [2]. - Callister joined Zions in June 2024 and has extensive experience from Wells Fargo and Community Banks of Colorado [4][5]. - Harris Simmons, CEO and chair of Zions' holding company, praised Burdiss for building a strong finance team and enhancing the bank's position [3].

Core Insights - Zions Bancorporation announced the retirement of Paul Burdiss as CEO of Zions Bank, effective December 31, 2025, after a 35-year career in financial services [1][2] - Nathan Callister, currently Executive Vice President and Executive Director of Commercial Banking at Zions Bank, will succeed Burdiss [2] Company Overview - Zions Bancorporation has approximately $89 billion in total assets as of December 31, 2024, and reported annual net revenue of $3.1 billion in 2024 [2] - The company operates in 11 western states under local management teams and distinct brands, and is recognized for its performance in small- and middle-market banking as well as public finance advisory services [2] - Zions Bancorporation is included in the S&P MidCap 400 and NASDAQ Financial 100 indices [2]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Zions Bancorporation due to allegations of materially misleading business information issued by the company [1][2]. Group 1: Legal Action and Investor Rights - Investors who purchased Zions Bancorporation securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to the alleged misleading information [2]. Group 2: Financial Impact and Company Disclosure - On October 15, 2025, Zions Bancorporation announced a $50 million charge-off for a loan due to misrepresentations and defaults by borrowers, prompting an independent review [3]. - Following this announcement, Zions Bancorporation's common stock experienced a decline of 13.14% on October 16, 2025 [4]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest against a Chinese company [5]. - The firm has been consistently ranked among the top firms for securities class action settlements and has recovered hundreds of millions for investors [5].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Zions Bancorporation due to allegations of materially misleading business information issued by the company [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased Zions Bancorporation securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to the alleged misleading information [2]. Group 2: Financial Impact and Company Disclosure - On October 15, 2025, Zions Bancorporation announced a $50 million charge-off for a loan due to misrepresentations and contractual defaults by borrowers [3]. - Following this announcement, Zions Bancorporation's common stock experienced a decline of 13.14% on October 16, 2025 [4]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [5]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [5].

Core Insights - Zions has experienced a strong year with improving top line growth driven by margin expansion and continued growth in fee income while maintaining tight control on expenses [1] - There was some noise in credit performance during Q3, which is expected to be a one-off event, and the company's credit performance remains among the best in the industry [1] Company Performance - The company has posted improving top line growth, indicating a positive trend in revenue generation [1] - Margin expansion has contributed significantly to the overall financial performance [1] - Continued growth in fee income suggests diversification in revenue streams [1] - The company has effectively managed expenses, which is crucial for maintaining profitability [1] Credit Performance - Q3 showed some unusual credit performance, but it is anticipated to be an isolated incident [1] - The company's credit performance is highlighted as being among the best in the industry, indicating strong risk management and asset quality [1]

Summary of Zions Bancorporation Conference Call (December 09, 2025) Company Overview - **Company**: Zions Bancorporation (NasdaqGS: ZION) - **Industry**: Banking Key Points and Arguments Financial Performance - Zions Bancorporation reported strong top-line growth driven by margin expansion and increased fee income while controlling expenses [2][4] - The bank's credit performance remains among the best in the industry despite some noise in Q3 regarding credit [2][4] Economic Environment - The CEO expressed optimism about the bank's positioning in the current economic environment, noting that business owners have adapted to changes such as tariffs and government shutdowns [5][6] - General sentiment among clients is reasonably upbeat, with consistent economic activity across small and large businesses [7] Loan and Deposit Growth - Loan growth is expected to improve slightly to moderately, particularly in commercial loans, with a record year in SBA 7(a) loans [10][11] - Deposit growth is viewed as variable, with a focus on stabilizing the demand deposit base [16][17] Commercial Real Estate (CRE) - The bank has strategically reduced its exposure to commercial real estate from about 33% to 22% of the portfolio, aiming for measured growth in this asset class [13][14] - The CEO believes that the current strategy has led to better credit quality and lower realized losses [14] Net Interest Margin and Funding Costs - The net interest margin has expanded for seven consecutive quarters, increasing by nearly 40 basis points [15] - The bank is working to improve its funding costs and deposit costs relative to peers, aiming to regain a competitive advantage [18][19] Growth Initiatives - Zions is focusing on growth in capital markets, wealth management, and payments, with expectations for significant growth in these areas by 2026 [24][25] - The bank plans to introduce new deposit-based products for small businesses, enhancing its offerings [27] Technology and Investment - The bank has made significant investments in technology and systems, including a core loan deposit system overhaul, which is expected to facilitate faster growth [32][33] - Future investments will focus on marketing and hiring skilled producers to drive growth [33][34] Operating Leverage and Capital Allocation - Positive operating leverage is anticipated to continue, with expectations of over 100 basis points in the coming year [36] - The bank aims to build capital to ensure stability during economic downturns, with a focus on thoughtful capital allocation [39][40] Regulatory Environment - The CEO noted a shift in regulatory attitudes under the new administration, which may ease some previous constraints on banking operations [50][51] Market Positioning - Zions Bancorporation emphasizes its unique focus on small and mid-sized businesses, supported by a strong deposit franchise and relationships with clients [56] Additional Important Insights - The bank's charge-offs in Q3 were low at four basis points annualized, indicating strong credit management [48] - The CEO is open to discussing medium-term financial targets in the future, reflecting a shift towards more structured goal-setting [52][54] This summary encapsulates the key insights from the conference call, highlighting Zions Bancorporation's financial performance, strategic initiatives, and outlook for the future.