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 Actions and Investigations - Shareholders who purchased Zions Bancorporation securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2] - Zions Bancorporation announced a $50 million charge-off related to a loan underwritten by its subsidiary, California Bank & Trust, citing misrepresentations and contractual defaults [3] - An independent review of the matter will be coordinated by Zions Bancorporation with legal counsel [3] Group 2: Market Reaction - Following the announcement of the charge-off, Zions Bancorporation's common stock experienced a decline of 13.14% on October 16, 2025 [4] Group 3: Rosen Law Firm's Credentials - 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]

Company Overview - Zions Bancorp is an $89 billion asset bank headquartered in Salt Lake City, operating several segments including Zions Bank, Amegy, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and Commerce Bank of Washington [1] Financial Performance - The bank has a mid-teens Return on Tangible Common Equity (ROTCE) and attractive deposit profile with noninterest bearing deposits at 24% [2] - Fee revenues account for 22% of total revenues, indicating a strong diversification in income sources [2] - The valuation is considered very attractive at 8 times the projected 2026 earnings and 1.3 times tangible book value, highlighting the bank's profitability relative to its market valuation [2]

Summary of Zions Bancorporation Conference Call (November 06, 2025) Company Overview - **Company**: Zions Bancorporation - **Ticker**: NasdaqGS:ZION - **Assets**: $89 billion - **Headquarters**: Salt Lake City - **Segments**: Includes Zions Bank, Amegy, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and Commerce Bank of Washington - **Profitability Metrics**: - ROTCE: Mid-teens - Non-interest bearing deposits: 24% - Fee revenues: 22% - **Valuation**: 8 times 2026 earnings and 1/3 of tangible book value [1][1][1] Core Business Focus - **Small Business Lending**: - Focus on small middle market customers remains strong - Recent progress in SBA loan products, moving up to 14th in league tables - Emphasis on building loyalty through long-term relationships with small businesses [12][12][12][15][15] Market Opportunities - **Geographic Focus**: - Growth observed in Texas (Amegy affiliate), California, Utah, Idaho, and Wyoming - Positive outlook for loan growth despite recent declines in period-end loans [17][18][22] Economic Environment - **Customer Confidence**: - Customers are stable, with indications of rebuilding inventories - Concerns remain regarding tariffs, inflation, and employment [24][25] Deposit Strategy - **Brokered Deposits**: - Successful reduction of brokered deposits, with a focus on core deposit growth - Introduction of a feature-rich demand deposit product aimed at enhancing consumer offerings [28][30][31] Non-Interest Income and Margin - **NIM Target**: - Aiming for a mid-threes NIM, with recent expansion noted over seven consecutive quarters - Factors contributing to NIM improvement include managed deposit costs and remixing earning assets [42][43][46] Capital Management - **CET1 Ratio**: - Focus on CET1 as a binding constraint for returning capital, with a target to align with peers in approximately 12 months - Emphasis on maintaining ample capital to withstand stress losses [52][55] Competitive Landscape - **Market Competition**: - Strong competition in Texas and other fast-growing markets - Zions aims to serve clients seeking community bank services amidst M&A activity in the region [58][60] M&A Strategy - **Acquisition Focus**: - Open to strategic acquisitions that enhance footprint and deposit franchises - Preference for tuck-in deals rather than large-scale mergers [62][64] Credit Quality - **Charge-Off Incident**: - Recent charge-off of a $60 million NDFI loan, with proactive measures taken to reserve for potential losses - Ongoing review of lending practices to ensure best practices are followed [72][73][75] Conclusion - **Future Outlook**: - Zions Bancorporation is positioned for growth with a focus on small business lending, deposit strategy, and maintaining strong capital ratios while navigating a competitive landscape and economic uncertainties [1][1][1]

Financial Performance - Net earnings applicable to common shareholders increased, with diluted EPS rising to $1.48 from $1.37 in the third quarter of 2024, reflecting higher net interest income and noninterest income [19]. - Net interest income grew by $52 million, or 8%, compared to the prior year period, leading to an improved net interest margin of 3.28%, up from 3.03% [20]. - The overall financial outlook remains cautious due to potential economic uncertainties and regulatory changes impacting the banking sector [10]. - Net income for Q3 2025 reached $222 million, a 3.7% increase from $214 million in Q3 2024 [199]. - Net income for the nine months ended September 30, 2025, was $636 million, an increase of 12% compared to $568 million in 2024 [202]. Interest Income and Expense - Total interest income for the third quarter was $1,064 million, down $40 million, or 4%, from the previous year [22]. - Total interest expense decreased by $92 million, or 19%, resulting in net interest income of $672 million for the quarter [22]. - The net interest margin improved to 3.28%, compared with 3.03% in the prior year period [24]. - Net interest income accounted for 78% of total net revenue, increasing by $52 million, or 8%, for the three months ended September 30, 2025 [24]. - Net interest income after provision for credit losses increased to $623 million in Q3 2025, compared to $607 million in Q3 2024, reflecting a growth of 2.6% [198]. Noninterest Income - Customer-related noninterest income increased by $5 million, or 3%, driven by higher loan-related fees, despite an $11 million net credit valuation adjustment loss [20]. - Noncustomer-related noninterest income increased by $12 million, or 86%, primarily due to higher dividends and a gain on the sale of a bank-owned property [23]. - Noninterest income accounted for 22% of total net revenue in both the third quarters of 2025 and 2024, increasing by $17 million, or 10%, for the three months ended September 30, 2025 [57]. - Total noninterest income for the nine months ended September 30, 2025, was $550 million, an increase of $43 million, or 8%, compared to the same period in 2024 [57]. Credit Losses and Provisions - The provision for credit losses was $60 million, primarily related to two commercial borrowers, with $50 million charged off and a full reserve established for the remaining $10 million [20]. - The provision for credit losses was $49 million in Q3 2025, compared to $13 million in Q3 2024, primarily due to credit losses from two related commercial loans [53]. - The allowance for credit losses (ACL) was $725 million as of September 30, 2025, down from $736 million a year earlier, reflecting lower reserves for commercial real estate risks [47]. - The ratio of ACL to total loans and leases decreased to 1.20% at September 30, 2025, compared to 1.25% at the same date in 2024 [47]. Loans and Leases - Total loans and leases increased by $1.4 billion, or 2%, driven by growth in the consumer 1-4 family residential mortgage and commercial and industrial loan portfolios [23]. - Average loans and leases increased by $2.1 billion, or 4%, to $60.8 billion, primarily due to growth in average consumer and commercial loans [34]. - The loan and lease portfolio increased by $892 million, or 2%, to $60,302 million at September 30, 2025, driven by growth in consumer 1-4 family residential mortgages, commercial and industrial loans, and term commercial real estate loans [81]. - The net loan and lease charge-offs totaled $56 million, or 0.37% of average loans and leases annualized, compared to $3 million, or 0.02%, in the prior year quarter [23]. Deposits and Borrowings - Total deposits decreased by $840 million, or 1%, with a notable reduction in interest-bearing deposits due to product migration [23]. - Total borrowed funds increased by $1.8 billion, or 51%, compared to the prior year quarter, driven by higher levels of long-term debt and short-term advances from the FHLB [23]. - Average deposits decreased by $726 million, or 1%, to $74.3 billion, with average noninterest-bearing deposits increasing by $199 million, or 1% [38]. - Total deposits declined by $1.3 billion, or 2%, to $74,878 million from $76,223 million at December 31, 2024, primarily due to a migration of consumer interest-bearing products to noninterest-bearing offerings [87]. Expenses and Efficiency - Noninterest expense increased by $25 million, or 5%, year-over-year, with salaries and employee benefits rising by $20 million due to higher severance and base salaries [62]. - Adjusted noninterest expense increased by $21 million, or 4%, with an efficiency ratio improving to 59.6% from 62.5% as adjusted pre-provision net revenue increased by $53 million, or 18% [63]. - The efficiency ratio improved, indicating better cost management and operational efficiency [19]. - Noninterest expense (GAAP) for the three months ended September 30, 2025, was $527 million, compared to $502 million for the same period in 2024, reflecting a 5% increase [195]. Shareholder Equity and Capital - Total shareholders' equity rose by $741 million, or 12%, to $6.9 billion at September 30, 2025, compared to $6.1 billion at December 31, 2024 [180]. - Common equity tier 1 (CET1) capital totaled $7.7 billion, a 7% increase from $7.2 billion in the prior year [187]. - The CET1 capital ratio improved to 11.3%, compared to 10.7% in the previous year [187]. - Tangible book value per common share increased by $5.52, or 17%, to $38.64, primarily due to increased retained earnings and reduced unrealized losses [187]. Market and Economic Conditions - The company plans to continue focusing on loan syndication activity and enhancing customer swap fees to drive future growth [20]. - The estimated amount of uninsured deposits was $33.6 billion, or 45% of total deposits, consistent with the previous period [88]. - The company actively trades in municipal, agency, and U.S. Treasury securities, exposing it to potential losses from adverse price movements in fixed-income markets [164]. - Changes in the fair value of available-for-sale (AFS) securities and interest rate swaps that qualify as cash flow hedges are recognized in AOCI each reporting period [165].

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 allegations against Zions Bancorporation [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]

Group 1: Regional Bank Impact - On October 16, Zion Bank reported a loss of $50 million due to loan fraud, causing a 6.7% drop in the regional bank index and a 0.9% decline in the S&P 500[3][14] - The VIX index surged close to 29 points, indicating heightened market volatility following the fraud disclosures[3][19] - The market's initial fears were short-lived, with regional bank stock prices beginning to recover shortly after the incident[3][28] Group 2: Private Credit Concerns - The private credit market has grown rapidly, reaching approximately $1.2 trillion in the U.S., accounting for 14% of total corporate lending[4][34] - The default rate for private credit remains low at around 1.8% as of Q2 2025, suggesting limited immediate spillover risks[4][38] - However, there are emerging cracks in the private credit market, with an increasing proportion of non-stressed PIK loans indicating deteriorating cash flows among borrowers[4][42] Group 3: Broader Credit Market Risks - Commercial real estate (CRE) remains a significant risk, with the delinquency rate for commercial mortgage-backed securities (CMBS) reaching a historical high of 11.8%[5][49] - The office vacancy rate in the U.S. hit 18.4%, exacerbating the challenges faced by the commercial real estate sector[5][49] - Consumer credit risks are rising, particularly among low-income groups, with delinquency rates for auto loans and credit cards reaching near historical highs[5][53] Group 4: Market Trends and Responses - The S&P 500 rose by 0.7% and the Nasdaq by 2.2% in the week following the regional bank news, indicating a recovery in broader market sentiment[6][65] - The Federal Reserve cut interest rates by 25 basis points in October, signaling a shift in monetary policy to support economic stability[6][66] - High-yield bond issuance rates have decreased, with the average yield falling to 6.6%, suggesting a more favorable environment for refinancing[5][59]

Group 1 - The recent loan fraud cases disclosed by two regional banks in the U.S. have raised concerns about the credit market, but the immediate market reaction has not persisted [2][6][84] - On October 16, Zion Bank reported a loss of $50 million due to loan fraud, while Western Alliance Bank disclosed a similar case, leading to a 6.7% drop in the regional bank index and a 3.1% rise in gold prices [2][6][84] - The current situation is not directly comparable to the Silicon Valley Bank crisis, as the involved banks are smaller, and the issues appear to be isolated incidents rather than systemic risks [2][16][22] Group 2 - Concerns about private credit markets have emerged, with the potential for "cockroach effects" as credit quality deteriorates and loan conditions tighten [3][32][85] - The default rate for private credit remains low, around 1.8% as of mid-2025, and the risk of contagion is considered manageable due to the nature of private loans [3][40][44] - However, signs of stress are evident, particularly with an increase in non-stressed PIK loans, indicating worsening cash flows among borrowers [3][44][85] Group 3 - Commercial real estate and consumer credit risks are significant concerns, with the CMBS delinquency rate reaching a historical high of 11.8% in August 2025 [4][53][86] - The office vacancy rate in the U.S. hit a record high of 18.4% by mid-2025, exacerbating the challenges in the commercial real estate sector [4][53][86] - Consumer credit risks are also rising, particularly among low-income groups, with delinquency rates for auto loans and credit cards reaching near historical highs [4][61][86]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Zions Bancorporation for possible violations of federal securities laws and unlawful business practices affecting stockholders [1][2]. Investigation Details - The investigation is focused on Zions Bancorporation's recent disclosures regarding misrepresentations and contractual defaults by borrowers under commercial loans, which may have impacted the company's stock performance [6]. Financial Impact - On October 15, 2025, Zions disclosed it would take a provision for approximately $60 million outstanding under two loans and charge off $50 million of that amount, leading to a significant stock price drop of $7.10, or 13.14%, closing at $46.93 on October 16, 2025 [6].

Core Viewpoint - Zions Bancorporation is under investigation for possible securities fraud following the disclosure of misrepresentations and defaults related to loans, which has led to a significant drop in its stock price [1][3]. Summary by Sections Investigation and Legal Actions - The Portnoy Law Firm has initiated an investigation into Zions Bancorporation and may file a class action on behalf of investors [1]. - Investors are encouraged to contact the law firm to discuss their legal rights and options for pursuing claims [2]. Financial Disclosure and Impact - On October 15, 2025, Zions Bancorporation revealed it had identified misrepresentations and defaults by borrowers under two commercial loans, leading to a provision for approximately $60 million and a charge-off of $50 million [3]. - Following this announcement, Zions' stock price fell by $7.10, or 13.14%, closing at $46.93 on October 16, 2025, resulting in losses for investors [3].

Core Insights - Recent disclosures from Zions Bancorporation and Western Alliance Bank regarding $60 million in potentially fraudulent loans have caused stock investors to become anxious, leading to a more than 6% drop in the S&P Regional Banks Select Industry Index on October 16 [1] Group 1: Regional Bank Issues - The collapse of Silicon Valley Bank two years ago serves as a cautionary tale, highlighting how regional banks can fail rapidly if they do not manage risk effectively [2][3] - Silicon Valley Bank's shares plummeted from $283 on March 1, 2023, to below $1 by the end of the month, illustrating the severe consequences of mismanagement [3] Group 2: Private Credit Market - The private credit market, valued at $3 trillion and projected to grow to $5 trillion by 2029, is a significant factor in the current regional banking issues [4] - JPMorgan Chase CEO Jamie Dimon warned that more problems could arise in the private credit market, especially in the event of an economic downturn, suggesting that the issues may not be isolated to just regional banks [5] Group 3: Market Reactions - The recent troubles faced by regional banks have negatively impacted the S&P Regional Banks Select Industry Index, but the broader stock market may not be significantly affected, as evidenced by past performance following the Silicon Valley Bank fallout [6]