Fourth Quarter 2025 Financial Results: FOR IMMEDIATE RELEASE Investor Contact: Shannon Drage (801) 844-8208 Media Contact: Jennifer Johnston (801) 844-7112 Zions Bancorporation, N.A. reports 4Q25 Net Earnings of $262 million, diluted EPS of $1.76 compared with 4Q24 Net Earnings of $200 million, diluted EPS of $1.34, and 3Q25 Net Earnings of $221 million, diluted EPS of $1.48 2025 Annual Net Earnings of $895 million, diluted EPS of $6.01, compared with 2024 Annual Net Earnings of $737 million, diluted EPS of ...

Financial Performance - Net earnings applicable to common shareholders increased, with diluted EPS rising to $1.48 from $1.37 in Q3 2024, reflecting higher net interest income and noninterest income [19]. - 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]. - Basic earnings per share for Q3 2025 were $1.48, up from $1.37 in Q3 2024, reflecting a growth of 8% [198]. - Comprehensive income for Q3 2025 was $330 million, down from $427 million in Q3 2024, indicating a decline of 22.7% [199]. Interest Income and Expenses - Total interest income for Q3 2025 was $1,064 million, down $40 million, or 4%, from Q3 2024 [22]. - Total interest expense decreased by $92 million, or 19%, to $392 million compared to the prior year [22]. - Net interest income (GAAP) for the three months ended September 30, 2025, was $672 million, compared to $620 million for the same period in 2024, representing an 8.4% increase [195]. - 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]. - Noninterest income for Q3 2025 was $189 million, up 9.9% from $172 million in Q3 2024 [198]. - 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]. - 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, up from $13 million in Q3 2024, primarily due to credit losses related to two 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]. - The estimated amount of uninsured deposits was $33,588 million, or 45% of total deposits, consistent with the previous period [88]. Efficiency and Cost Management - The efficiency ratio improved, indicating better cost management in operations [19]. - 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 (non-GAAP) improved to 59.6% for the three months ended September 30, 2025, from 62.5% in the same period last year [195]. Capital and Shareholder Equity - 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]. - The 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]. Technology and Operational Improvements - The company plans to continue focusing on technology and information security systems to mitigate risks and enhance operational efficiency [15]. - The company completed the final phase of a multi-year project to replace its core loan and deposit banking systems, enhancing operational performance and customer experience [85]. - Total technology spend increased by $15 million, or 13%, compared to the same prior year quarter, driven by higher capitalized technology investments [65]. Risk Management - The company actively manages interest rate risk through a combination of interest rate swaps and investments in fixed-rate securities to moderate the expected sensitivity of net interest income [146]. - Interest rate risk remains within established policy limits despite shifts in the composition of deposit balances, with a weighted average modeled beta of 50% for interest-bearing deposits with indeterminable maturities [157]. - The Earnings at Risk (EaR) analysis showed a potential decrease in net interest income of 9.7% under a -200 bps rate shift scenario as of September 30, 2025 [157].

Financial Performance - Net earnings for Q3 2025 were $221 million, with diluted EPS of $1.48, compared to $204 million and $1.37 in Q3 2024, and $243 million and $1.63 in Q2 2025 [2]. - Net income for Q3 2025 was $222 million, a decrease of 9% from $244 million in Q2 2025 [38]. - Net earnings applicable to common shareholders for the quarter ended September 30, 2025, were $221 million, down from $243 million in the previous quarter [36]. - The return on average assets decreased to 0.99% from 1.09% in the previous quarter [36]. - The return on average tangible common equity for the three months ended September 30, 2025, was 16.0%, compared to 17.4% for the same period in 2024 [50]. Revenue and Income - Net interest income increased by 8% to $672 million, with a net interest margin (NIM) of 3.28%, up from 3.03% in the prior year [4]. - Total interest income for Q3 2025 was $1,064 million, a 1.2% increase from $1,051 million in Q2 2025 [38]. - Noninterest income for Q3 2025 was $189 million, slightly down from $190 million in Q2 2025 [38]. - Customer-related noninterest income was $163 million, up 3%, while adjusted customer-related noninterest income increased by 6% to $174 million [13]. - Noncustomer-related noninterest income surged by 86% to $26 million, driven by a $10 million increase in dividends and other income [14]. 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 incentive compensation costs [16]. - Total noninterest expense for Q3 2025 was $527 million, unchanged from Q2 2025 [38]. - Adjusted noninterest expense rose by $21 million, or 4%, while the efficiency ratio improved to 59.6% from 62.5%, reflecting an 18% increase in adjusted pre-provision net revenue [17]. - The efficiency ratio improved to 59.6%, down from 62.5% in the prior year [5]. - The efficiency ratio decreased to 59.6% from 62.2% in the prior quarter, demonstrating improved operational efficiency [53]. Loans and Credit Quality - Total loans and leases reached $60.3 billion, a 2% increase, while nonperforming assets decreased to $324 million, or 0.54% of loans and leases [4]. - The provision for credit losses was $49 million, significantly higher than $13 million in the previous year, primarily due to two large related commercial and industrial loans [4]. - The provision for credit losses was $49 million for the quarter, compared to a negative provision of $(1) million in the previous quarter [36]. - Nonperforming assets totaled $324 million, or 0.54% of total loans and leases, down from $368 million, or 0.62%, in the prior year [22]. - The annualized ratio of net loan and lease charge-offs to average loans was 0.37%, up from 0.07% in the previous quarter [36]. Capital and Equity - The estimated CET1 capital ratio improved to 11.3%, compared to 10.7% in the prior year [4]. - Total shareholders' equity increased by $269 million, or 4%, to $6.865 billion compared to the previous quarter and by $480 million, or 8%, compared to the same quarter last year [27]. - Estimated common equity tier 1 (CET1) capital rose to $7.7 billion, a 7% increase from $7.2 billion in the prior year period, with a CET1 capital ratio of 11.3%, up from 10.7% [29]. - Tangible book value per common share increased by $5.52, or 17%, to $38.64, primarily due to an increase in retained earnings and reduced unrealized losses in accumulated other comprehensive income (AOCI) [29]. - Tangible common equity rose to $5,705 million, reflecting a growth from $5,434 million quarter-over-quarter [51]. Deposits and Borrowings - Total deposits were $74.9 billion, down 1%, but customer deposits (excluding brokered deposits) increased by 1% to $71.1 billion [4]. - Total deposits rose to $74,878 million as of September 30, 2025, up from $73,800 million in June 2025 [37]. - Total borrowed funds increased by $1.8 billion, or 51%, year-over-year, driven by higher long-term debt and short-term advances [26]. - The loan-to-deposit ratio was 81%, compared to 78% in the prior year quarter [25]. - Total interest-bearing deposits decreased to $49,381 million with an average yield of 2.51%, down from $50,306 million and 3.19% a year ago [45]. Assets and Securities - Total assets as of September 30, 2025, were $88,533 million, a slight decrease from $88,893 million in June 2025 [36]. - Total assets as of September 30, 2025, were $89,155 million, a slight decrease from $89,170 million a year earlier [45]. - Total investment securities decreased by $1.1 billion, or 6%, to $18.2 billion compared to the prior year, primarily due to principal reductions [18]. - The average balance of investment securities was $18,221 million with a yield of 2.73% for the three months ended September 30, 2025 [45]. - Total liabilities were $82,473 million, a decrease from $82,992 million a year earlier [45].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ COMMISSION FILE NUMBER 001-12307 ZIONS BANCORPORATION, NATIONAL ASSOCIATION (Exact name of registrant as specified in its charter) United States ...

Financial Performance - Net earnings for Q2 2025 were $243 million, with diluted EPS of $1.63, representing a 27% increase from $190 million and $1.28 in Q2 2024[2] - Net earnings applicable to common shareholders rose to $243 million for the three months ended June 30, 2025, compared to $169 million for the previous quarter, an increase of 43.8%[38] - Net income for Q2 2025 was $244 million, up from $170 million in Q1 2025, indicating a 43.5% increase[40] - Adjusted net earnings applicable to common shareholders for Q2 2025 were $245 million, compared to $170 million in Q1 2025, reflecting a 44.1% growth[52] Revenue and Income - Net interest income increased by 9% to $648 million, with a net interest margin (NIM) of 3.17%, up from 2.98% in the prior year[4] - Adjusted pre-provision net revenue (PPNR) rose 14% to $316 million, while customer-related noninterest income increased by 7% to $164 million[4] - Noninterest income for Q2 2025 totaled $190 million, compared to $171 million in Q1 2025, marking an 11.1% increase[40] - Total interest income for Q2 2025 was $1,051 million, a 2.2% increase from $1,028 million in Q1 2025[40] Loans and Leases - Average loans and leases grew by 4% to $60.8 billion, while total deposits remained stable at $73.8 billion[4] - Loans and leases, net of unearned income and fees, increased by $2.4 billion, or 4%, to $60.8 billion, driven by a $1.2 billion increase in consumer loans and a $1.1 billion increase in commercial loans[21] - Total loans and leases as of June 30, 2025, reached $60,833 million, an increase from $59,941 million in Q1 2025, reflecting a 1.5% growth[42] - Commercial and industrial loans amounted to $17,526 million as of June 30, 2025, up from $16,900 million in Q1 2025, a 3.7% increase[42] Credit Quality - The provision for credit losses was negative $1 million, with net charge-offs at 0.07% of average loans and leases, down from 0.10%[4] - Nonperforming assets increased to $313 million, or 0.51% of loans and leases, compared to $265 million, or 0.45% in the prior quarter[4] - The allowance for loan and lease losses decreased to $690 million at the end of June 30, 2025, from $697 million at the end of March 31, 2025[44] - Net loan and lease charge-offs for the quarter ended June 30, 2025, were $10 million, down from $16 million in the previous quarter[46] Capital and Equity - The estimated common equity tier 1 (CET1) capital ratio improved to 11.0%, up from 10.6%[4] - Total shareholders' equity increased to $6.596 billion in Q2 2025, up $269 million (4%) from Q1 2025 and $571 million (9%) from Q2 2024[28] - Tangible book value per common share increased to $36.81, up from $30.67, primarily due to increased retained earnings and reduced unrealized losses[31] - The company’s common equity increased to $6,357 million from $5,450 million, reflecting a growth of 16.6% year-over-year[47] Efficiency and Management - Noninterest expense increased by $18 million, or 4%, compared to the prior year quarter, primarily driven by higher salaries and employee benefits due to improved profitability[18] - The efficiency ratio improved to 62.2% for the quarter ended June 30, 2025, down from 66.6% in the prior quarter, indicating better cost management[38] - Adjusted noninterest expense rose by $15 million, or 3%, with the efficiency ratio improving to 62.2% from 64.5% as adjusted pre-provision net revenue increased by $38 million, or 14%[19] Deposits and Borrowings - Total deposits remained stable at $73.8 billion, with noninterest-bearing demand deposits increasing by $682 million, offset by a $652 million decline in interest-bearing deposits[25] - Customer deposits (excluding brokered deposits) totaled $69.9 billion, compared to $69.5 billion in the prior year quarter, with a loan-to-deposit ratio of 82%[26] - Total borrowed funds increased by $845 million, or 14%, compared to the prior year quarter, driven by increases in long-term debt and FHLB short-term advances[27] Other Comprehensive Income - Accumulated other comprehensive income (loss) improved to a loss of $2.2 billion, a $385 million improvement from a loss of $2.5 billion in Q2 2024[30] - The total allowance for credit losses was $732 million at the end of June 30, 2025, compared to $743 million at the end of March 31, 2025[44]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q COMMISSION FILE NUMBER 001-12307 ZIONS BANCORPORATION, NATIONAL ASSOCIATION (Exact name of registrant as specified in its charter) United States of America 87-0189025 (State or other jurisdiction of incorporation or organization) One South Main Salt Lake City, Utah 84133-1109 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (801) 844-82 ...

[Financial Highlights & CEO Commentary](index=1&type=section&id=Financial%20Highlights%20%26%20CEO%20Commentary) This section presents Zions Bancorporation's Q1 2025 financial performance and the CEO's strategic insights [First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Zions Bancorporation reported strong year-over-year growth in its first quarter 2025 results, with net earnings increasing 18% to $169 million and diluted EPS rising to $1.13 from $0.96. This performance was driven by a 16 basis point expansion in the net interest margin and a 10% increase in adjusted pre-provision net revenue. The results were impacted by a one-time $16 million income tax expense due to a revaluation of deferred tax assets from new Utah state tax legislation Q1 2025 Key Financial Metrics | Metric | 1Q25 | 1Q24 | 4Q24 | | :--- | :--- | :--- | :--- | | Net Earnings | $169 million | $143 million | $200 million | | Diluted EPS | $1.13 | $0.96 | $1.34 | | Net Interest Margin (NIM) | 3.10% | 2.94% | 3.05% | | Common Equity Tier 1 (CET1) Ratio | 10.8% (Est.) | 10.4% | 10.9% | - A notable item in the quarter was a **$16 million** additional income tax expense (**$0.11** per share) from the revaluation of Deferred Tax Assets (DTAs) due to new Utah state tax legislation. The company expects most of this charge to accrete back into income over time[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Chairman and CEO Harris H. Simmons highlighted the 18% year-over-year increase in net income, attributing it to margin expansion and PPNR growth. He noted the completion of a four-branch acquisition in California, adding approximately $630 million in deposits and $420 million in loans. While credit quality remains strong with stable nonperforming assets and low net charge-offs, the CEO expressed caution about economic uncertainty stemming from potential tariffs and trade policy changes - The company completed the acquisition of four branches in California's Coachella Valley from FirstBank, 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%**[4](index=4&type=chunk) - Management expressed confidence in the company's credit culture and strong reserves to navigate potential economic turbulence, despite a more uncertain economic outlook clouded by trade policy concerns[4](index=4&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) This section details the company's revenue streams, including net interest income and noninterest income, alongside operational expenses [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased 6% year-over-year to $624 million, primarily due to lower funding costs. The net interest margin (NIM) expanded by 16 basis points to 3.10% compared to Q1 2024. This improvement occurred despite a 17 basis point drop in the yield on interest-earning assets, as the cost of deposits and interest-bearing liabilities fell more significantly by 30 and 33 basis points, respectively Net Interest Income and Margin (YoY Comparison) | Metric | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $624 million | $586 million | +6% | | Net Interest Margin (NIM) | 3.10% | 2.94% | +16 bps | | Yield on Interest-Earning Assets | 5.08% | 5.25% | -17 bps | | Cost of Deposits | 1.76% | 2.06% | -30 bps | - The growth in net interest income was driven by lower funding costs and a favorable mix change in average interest-earning assets, with increases in loans and money market investments offsetting a decline in securities[9](index=9&type=chunk)[12](index=12&type=chunk) - Average interest-bearing liabilities grew by **$2.3 billion** (**4%**) YoY, driven by a **$2.9 billion** increase in interest-bearing deposits, partially offset by a decrease in borrowed funds[13](index=13&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Total noninterest income rose 10% year-over-year to $171 million. The increase was driven by a 4% rise in customer-related income to $158 million, led by higher loan-related and capital markets fees. Noncustomer-related income also saw a significant increase, primarily due to an $8 million year-over-year improvement in net securities gains from valuation adjustments in the SBIC investment portfolio Noninterest Income Breakdown (YoY Comparison) | Category | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Customer-related noninterest income | $158 million | $152 million | +4% | | Noncustomer-related noninterest income | $13 million | $4 million | +225% | | **Total noninterest income** | **$171 million** | **$156 million** | **+10%** | - The growth in customer-related income was largely driven by higher loan-related fees and improved capital markets fees, particularly from increased investment banking advisory services[14](index=14&type=chunk) - Noncustomer income increased 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) Total noninterest expense increased by a modest 2% year-over-year to $538 million, while adjusted noninterest expense grew 4% to $533 million. The rise was primarily due to higher salaries and employee benefits (+3%) and technology-related costs (+13%). This was partially offset by a significant 35% decrease in deposit insurance and regulatory expenses, which was elevated in the prior-year quarter due to an FDIC special assessment accrual. The efficiency ratio improved to 66.6% from 67.9% a year ago Noninterest Expense Breakdown (YoY Comparison) | Category | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $342 million | $331 million | +3% | | Technology, telecom, and info processing | $70 million | $62 million | +13% | | Deposit insurance and regulatory expense | $22 million | $34 million | -35% | | **Total noninterest expense** | **$538 million** | **$526 million** | **+2%** | - The decrease in deposit insurance expense was mainly due to a **$13 million** accrual for an FDIC special assessment in the prior year quarter[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) This section analyzes the company's financial position, including assets, liabilities, equity, and credit quality trends [Investment Securities](index=5&type=section&id=Investment%20Securities) The total investment securities portfolio decreased by 7% year-over-year to $18.7 billion as of March 31, 2025. The decline was primarily driven by principal reductions in both the available-for-sale and held-to-maturity portfolios. The company utilizes its securities portfolio to manage liquidity and interest rate risk, with a focus on securities that can be used for secured borrowings to avoid sales Investment Securities Portfolio (YoY Comparison) | Category | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Available-for-sale, at fair value | $9,223 million | $9,931 million | -7% | | Held-to-maturity, at amortized cost | $9,481 million | $10,209 million | -7% | | **Total investment securities** | **$18,704 million** | **$20,140 million** | **-7%** | [Loans and Leases](index=5&type=section&id=Loans%20and%20Leases) Total loans and leases grew 3% year-over-year to $59.9 billion. The growth was led by a 9% increase in consumer loans, primarily in 1-4 family residential mortgages, and a 2% increase in commercial loans. The loan balances at quarter-end include approximately $420 million from the acquisition of four FirstBank branches Loans and Leases by Category (YoY Comparison) | Category | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Commercial | $31,010 million | $30,479 million | +2% | | Commercial real estate | $13,593 million | $13,578 million | 0% | | Consumer | $15,338 million | $14,052 million | +9% | | **Total loans and leases** | **$59,941 million** | **$58,109 million** | **+3%** | - The loan portfolio at March 31, 2025, includes about **$420 million** in loans acquired from the FirstBank branch purchase[20](index=20&type=chunk) [Credit Quality](index=6&type=section&id=Credit%20Quality) Credit quality metrics showed some stress compared to the prior year, though remained stable quarter-over-quarter. The provision for credit losses was $18 million, up from $13 million. Nonperforming assets rose to 0.51% of loans from 0.44% a year ago. Most notably, classified loans increased significantly to $2.9 billion (4.82% of loans) from $966 million (1.66%), primarily due to increased risk grading emphasis on cash flows in the CRE portfolio and weaker performance of recent construction loan vintages Key Credit Quality Metrics (YoY Comparison) | Metric | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Provision for credit losses | $18 million | $13 million | +$5 million | | Net loan and lease charge-offs | $16 million | $6 million | +$10 million | | Nonperforming assets | $307 million | $254 million | +$53 million | | Classified loans | $2,891 million | $966 million | +$1,925 million | | Ratio of nonperforming assets | 0.51% | 0.44% | +7 bps | | Ratio of classified loans | 4.82% | 1.66% | +316 bps | - The increase in classified loans was primarily in the multifamily and industrial CRE loan portfolios, driven by a shift in risk grading to emphasize 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 increased 2% year-over-year to $75.7 billion, including approximately $630 million from the FirstBank branch acquisition. The growth was in interest-bearing deposits, which rose by $1.8 billion, while noninterest-bearing demand deposits saw a slight decline. Total borrowed funds decreased by 18% to $4.4 billion, driven by a reduction in short-term borrowings, partially offset by an increase in long-term debt Deposits and Borrowed Funds (YoY Comparison) | Category | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Total Deposits | $75.7 billion | $74.2 billion | +2% | | - Noninterest-bearing | $24.8 billion | $25.1 billion | -1% | | - Interest-bearing | $50.9 billion | $49.1 billion | +4% | | Total Borrowed Funds | $4.4 billion | $5.4 billion | -18% | | - Short-term | $3.5 billion | $4.9 billion | -29% | | - Long-term | $1.0 billion | $0.5 billion | +77% | - Customer deposits (excluding brokered) totaled **$70.9 billion**, up from **$69.9 billion** a year ago. The loan-to-deposit ratio was **79%**, compared to **78%** in Q1 2024[25](index=25&type=chunk) [Shareholders' Equity and Capital](index=8&type=section&id=Shareholders%27%20Equity%20and%20Capital) Total shareholders' equity increased 9% year-over-year to $6.3 billion. The estimated Common Equity Tier 1 (CET1) capital ratio improved to 10.8% from 10.4%. Tangible book value per common share saw a significant increase to $34.95 from $29.34, benefiting from higher retained earnings and a reduction in accumulated other comprehensive income (AOCI) losses. The company repurchased 0.8 million common shares for $41 million during the quarter Capital Ratios and Metrics (YoY Comparison) | Metric | 1Q25 | 1Q24 | Change | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | $6,327 million | $5,829 million | +9% | | Estimated CET1 Capital Ratio | 10.8% | 10.4% | +40 bps | | Tangible Book Value per Share | $34.95 | $29.34 | +19% | | Common Dividends Paid | $65 million | $61 million | +7% | - The company repurchased **0.8 million** common shares for **$41 million** in Q1 2025, compared to **0.9 million** shares for **$35 million** in Q1 2024[28](index=28&type=chunk) - Accumulated other comprehensive income (AOCI) improved to a loss of **$2.3 billion** from a loss of **$2.6 billion** a year ago, primarily due to changes in the fair value of available-for-sale securities. These changes are excluded from regulatory capital ratios[29](index=29&type=chunk) [Appendix: Financial Statements and Reconciliations](index=12&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This appendix provides detailed financial statements, loan portfolio specifics, and reconciliations of non-GAAP financial measures [Financial Highlights](index=12&type=section&id=Financial%20Highlights) This section provides a five-quarter summary of key financial data, including balance sheet items, income statement components, per-share amounts, and selected performance and capital ratios. It offers a quick reference for trend analysis across recent periods Selected Ratios Trend | Ratio | 1Q25 | 4Q24 | 1Q24 | | :--- | :--- | :--- | :--- | | Return on average assets | 0.77% | 0.96% | 0.70% | | Return on average common equity | 11.1% | 13.2% | 10.9% | | Net interest margin | 3.10% | 3.05% | 2.94% | | Efficiency ratio | 66.6% | 62.0% | 67.9% | | Common equity tier 1 capital ratio | 10.8% | 10.9% | 10.4% | [Consolidated Financial Statements](index=14&type=section&id=Consolidated%20Financial%20Statements) This section contains the detailed, unaudited consolidated financial statements for the past five quarters, including the Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Average Balance Sheets with yields and rates. These statements form the basis for the financial analysis presented in the report - The Consolidated Balance Sheets detail the company's assets, liabilities, and shareholders' equity at the end of each of the last five quarters[38](index=38&type=chunk) - The Consolidated Statements of Income present the company's revenues, expenses, and net income for each of the last five quarters[39](index=39&type=chunk) - The Consolidated Average Balance Sheets provide average balances for assets and liabilities, along with the corresponding yields and rates, which are used to calculate net interest margin and other performance metrics[45](index=45&type=chunk) [Loan Portfolio and Credit Quality Details](index=17&type=section&id=Loan%20Portfolio%20and%20Credit%20Quality%20Details) This section provides detailed breakdowns of the loan portfolio and credit quality metrics over the past five quarters. It includes tables for loan balances by type, nonperforming assets, the allowance for credit losses, nonaccrual loans by portfolio, and net charge-offs by portfolio, offering deeper insight into the bank's lending activities and risk profile Nonperforming Assets Trend | (In millions) | 1Q25 | 4Q24 | 1Q24 | | :--- | :--- | :--- | :--- | | Nonaccrual loans | $305 | $297 | $248 | | Other real estate owned | $2 | $1 | $6 | | **Total nonperforming assets** | **$307** | **$298** | **$254** | Allowance for Credit Losses (ACL) Trend | (In millions) | 1Q25 | 4Q24 | 1Q24 | | :--- | :--- | :--- | :--- | | Balance at beginning of period | $696 | $694 | $684 | | Provision for loan losses | $17 | $38 | $21 | | Net loan and lease charge-offs | $16 | $36 | $6 | | **Balance at end of period** | **$697** | **$696** | **$699** | [Non-GAAP Financial Measures](index=21&type=section&id=Non-GAAP%20Financial%20Measures) This section presents reconciliations of GAAP to non-GAAP financial measures used by management to assess performance. Key non-GAAP metrics include Tangible Common Equity, Tangible Book Value per Common Share, Adjusted Pre-Provision Net Revenue (PPNR), and the Efficiency Ratio. These measures are adjusted for items like intangible assets, amortization, and certain non-recurring expenses to provide what management believes is a more consistent basis for period-to-period comparison - The report provides reconciliations for tangible common equity measures, which exclude goodwill and intangible assets to offer a view of performance independent of acquisition accounting[48](index=48&type=chunk)[52](index=52&type=chunk) - Adjusted PPNR and the Efficiency Ratio are reconciled by removing items not expected to recur frequently, such as severance costs and FDIC special assessments, to better reflect ongoing operational performance[53](index=53&type=chunk)[54](index=54&type=chunk)

PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Zions Bancorporation is a regional bank with approximately $89 billion in assets, operating across 11 states through seven distinct brands and subject to extensive federal regulation - Zions Bancorporation, N.A. is a Salt Lake City-based bank with **$3.1 billion in net revenue for 2024** and approximately **$89 billion in total assets** at year-end[18](index=18&type=chunk) - The bank serves over one million customers through 404 branches and various digital platforms across 11 states, employing **9,406 full-time equivalent staff** as of December 31, 2024[18](index=18&type=chunk) - Operations are conducted through **seven separately managed bank divisions**, or "affiliates," each with local branding and management, supported by a centralized enterprise segment for governance, risk management, and technology[19](index=19&type=chunk) - The bank provides a wide array of products and services across several key areas: - **Commercial and Small Business Banking:** Includes lending, leasing, cash management, and municipal finance - **Capital Markets and Investment Banking:** Offers loan syndications, derivatives, foreign exchange, and advisory services - **Commercial Real Estate Lending:** Provides term and construction financing for various property types - **Retail Banking:** Encompasses residential mortgages, home equity lines, deposit accounts, and consumer loans - **Wealth Management:** Delivers investment management, fiduciary services, and estate planning[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - The bank operates in a highly competitive environment, facing competition from commercial banks, credit unions, fintech companies, and private credit funds, some of which operate without a physical presence in its markets[25](index=25&type=chunk) - Key competitive differentiators include service quality, local community knowledge, branch convenience, a wide range of products, and strong customer relationships[26](index=26&type=chunk) - The bank is highly regulated by the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), and the Federal Deposit Insurance Corporation (FDIC)[28](index=28&type=chunk) Capital Ratios as of December 31, 2024 | Capital Ratio | Minimum Requirement with Buffer | Current Ratio | Minimum to be "Well Capitalized" | | :--- | :--- | :--- | :--- | | CET1 to risk-weighted assets | 7.0% | 10.9% | 6.5% | | Tier 1 risk-based capital to risk-weighted assets | 8.5% | 11.0% | 8.0% | | Total risk-based capital to risk-weighted assets | 10.5% | 13.3% | 10.0% | | Tier 1 leverage ratio | 4.0% | 8.3% | 5.0% | - The bank is monitoring several significant regulatory proposals, including the **"Basel III Endgame"** which would revise capital requirements for banks with over $100 billion in assets, and a proposal to require banks of that size to hold a minimum amount of long-term debt[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - The FDIC implemented a special assessment to recover costs from the 2023 bank failures; Zions recorded approximately **$101 million in related expenses** during 2023 and 2024[43](index=43&type=chunk)[45](index=45&type=chunk) - As of December 31, 2024, the bank had **9,406 full-time equivalent employees**[63](index=63&type=chunk) - The workforce is diverse, with approximately **58% of associates being women** and **38% self-identifying as part of a minority demographic**[63](index=63&type=chunk) - The bank focuses on attracting, developing, and retaining talent through extensive training programs, tuition reimbursement, and formal mentoring; in 2024, it hosted **over 1,000 training experiences**[69](index=69&type=chunk)[70](index=70&type=chunk) - Pay equity is assessed every two years by an independent third party, with the most recent review finding **no meaningful differences in pay levels** across the workforce[73](index=73&type=chunk) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company manages material risks including credit, interest rate, liquidity, strategic, operational, and legal threats overseen by its Board and ERM Committee - Credit risk is a significant concern, with potential for deterioration in credit quality due to rising interest rates, market volatility, or economic weakening[77](index=77&type=chunk) - The loan portfolio has concentrations in **Commercial Real Estate (CRE)**, particularly multifamily, industrial, and office properties, as well as oil and gas-related lending[79](index=79&type=chunk)[80](index=80&type=chunk) - A significant geographic concentration exists, with **70-77% of lending portfolios in Utah, Idaho, Texas, and California**, making financial performance highly dependent on the economic conditions in these states[81](index=81&type=chunk)[82](index=82&type=chunk) - Net interest income, the largest component of revenue, is highly sensitive to fluctuations in interest rates, which are influenced by economic conditions and Federal Reserve policies[86](index=86&type=chunk) - The primary source of liquidity is customer deposits, which experienced heightened volatility following the 2023 bank closures, impacting funding costs[89](index=89&type=chunk) - Access to capital markets and borrowing costs are influenced by credit ratings; downgrades could negatively impact liquidity and financial condition[91](index=91&type=chunk) - The company faces systemic risk, where concerns about other financial institutions can lead to market-wide disruptions and adversely affect Zions[93](index=93&type=chunk)[94](index=94&type=chunk) - In July 2024, the company completed a multi-year project to replace its core loan and deposit banking systems, but notes that such large-scale projects carry risks of not achieving intended results[98](index=98&type=chunk) - Competition from fintechs and the adoption of new technologies like AI and blockchain present both opportunities and risks, requiring continuous investment to remain technologically competitive[99](index=99&type=chunk) - Operational risks include disruptions from new projects, internal control failures, increasingly sophisticated fraud schemes, and catastrophic events like natural disasters[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - The company relies heavily on information systems and is subject to continuous cybersecurity threats from actors using methods like ransomware, phishing, and social engineering, with risks heightened by new technologies like generative AI[110](index=110&type=chunk)[111](index=111&type=chunk) - Regulatory requirements, including stress testing and capital standards under the National Bank Act, may limit the ability to increase dividends or repurchase shares[116](index=116&type=chunk) - The company had a **net deferred tax asset of $904 million** at year-end 2024, and its full realization depends on future taxable income and tax laws[120](index=120&type=chunk) - The financial services industry is subject to substantial and costly regulation, with ongoing changes that can impact profitability and business activities[122](index=122&type=chunk)[124](index=124&type=chunk) - As a national bank, the company is governed by the National Bank Act, which has a less developed corporate and securities law framework than state charters, potentially complicating corporate transactions like mergers[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 1B. Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved written comments from SEC or OCC staff received 180 days or more before the fiscal year-end - There are no unresolved written comments from SEC or OCC staff[143](index=143&type=chunk) [Item 1C. Cybersecurity](index=24&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk is managed via a formal ERM framework overseen by the Board's Risk Oversight Committee, with no material incidents reported to date - Cybersecurity risk is overseen by the Board and managed through an established ERM framework, with regular reporting to senior management and Board-level committees[145](index=145&type=chunk) - The CISO has over 20 years of technology leadership experience, and the CTOO has over 25 years of experience in audit, risk, and technology leadership[147](index=147&type=chunk) - As of December 31, 2024, risks from cybersecurity threats **have not materially impacted** the company's business strategy, results of operations, or financial condition[151](index=151&type=chunk) [Item 2. Properties](index=26&type=section&id=Item%202.%20Properties) The company operates 404 branches, of which 275 are owned and 129 are leased, with its corporate headquarters also being leased - The company operates 404 branches, with **275 owned and 129 leased**[153](index=153&type=chunk) [Item 3. Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 16 of the Notes to Consolidated Financial Statements - Details on legal proceedings are provided in Note 16 of the financial statements[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company has no mine safety disclosures to report - None[155](index=155&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on NASDAQ; it redeemed $374 million in preferred stock, repurchased common shares, and received approval for future buybacks - In December 2024, the company redeemed its Series G, I, and J preferred stock for a cash payment of approximately **$374 million**, resulting in a **$6 million reduction** to net earnings applicable to common shareholders[158](index=158&type=chunk) 2024 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | First quarter | 890,167 | $39.32 | | Second quarter | — | — | | Third quarter | 2,799 | $49.62 | | Fourth quarter | 7,759 | $59.93 | | **Total 2024** | **900,725** | **$39.53** | - In February 2025, the company received approval to repurchase up to **$40 million of common shares** during fiscal year 2025[162](index=162&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net earnings increased in 2024 due to lower credit loss provisions, while net interest income remained flat amid rising funding costs and a slight margin decline Selected Financial Highlights (2024 vs. 2023) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $2,430 M | $2,438 M | -0.3% | | Provision for Credit Losses | $72 M | $132 M | -45% | | Noninterest Income | $700 M | $677 M | +3% | | Noninterest Expense | $2,046 M | $2,097 M | -2% | | Net Income | $784 M | $680 M | +15% | | Diluted EPS | $4.95 | $4.35 | +14% | | Net Interest Margin | 3.00% | 3.02% | -2 bps | - The provision for credit losses **decreased to $72 million** in 2024 from $132 million in 2023[174](index=174&type=chunk) - Noninterest expense decreased by $51 million, largely due to a **$90 million accrual for the FDIC special assessment** in the prior year, which was partially offset by increased technology and salary expenses[174](index=174&type=chunk)[216](index=216&type=chunk) - **Classified loans increased significantly to $2.9 billion** (4.83% of total loans) from $825 million (1.43% of total loans) in the prior year, primarily within the multifamily and industrial CRE portfolios[177](index=177&type=chunk) - The amortized cost of total investment securities **decreased by $1.9 billion (8%)** during 2024, primarily due to principal reductions[254](index=254&type=chunk) - The loan and lease portfolio **increased by $1.6 billion (3%) to $59.4 billion**, with growth concentrated in consumer 1-4 family residential mortgages, home equity lines, and commercial and industrial loans[261](index=261&type=chunk) - Total deposits **increased by $1.3 billion (2%)**, with interest-bearing deposits growing by $2.8 billion while noninterest-bearing demand deposits decreased by $1.5 billion[269](index=269&type=chunk) - Estimated uninsured deposits were **$34.4 billion, or 45% of total deposits**, at year-end 2024, compared to $33.2 billion, or 44%, at year-end 2023[270](index=270&type=chunk) - Nonperforming assets increased to **$298 million (0.50% of loans)** from $228 million (0.39%) in the prior year[322](index=322&type=chunk) - Classified loans increased substantially to **$2.9 billion (4.83% of total loans)** from $825 million (1.43%) at year-end 2023, primarily in multifamily and industrial CRE loans[324](index=324&type=chunk) - The bank's asset sensitivity increased; a **+100 bps parallel shift in rates is projected to increase 12-month forward net interest income by 4.4%**, compared to a 2.4% increase projected at year-end 2023[345](index=345&type=chunk) - Total available liquidity was **$41.6 billion**, which is **121% of the estimated $34.4 billion in uninsured deposits**[270](index=270&type=chunk)[364](index=364&type=chunk) - The **Common Equity Tier 1 (CET1) capital ratio improved to 10.9%** from 10.3% in the prior year, exceeding the 7.0% minimum requirement with buffer[391](index=391&type=chunk)[631](index=631&type=chunk) - The Allowance for Credit Losses (ACL) is a critical estimate; a sensitivity analysis showed that if the ACL were based solely on the baseline economic scenario, it would have been approximately **$125 million lower** at December 31, 2024[398](index=398&type=chunk) - Fair value estimates for certain assets and liabilities require significant judgment, especially when observable market prices (Level 1 inputs) are not available[399](index=399&type=chunk)[401](index=401&type=chunk) - The annual goodwill impairment evaluation was performed in the fourth quarter of 2024 using a qualitative analysis, which concluded that **goodwill was not impaired**[410](index=410&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the information provided in the "Interest Rate and Market Risk Management" section of Management's Discussion and Analysis - Information required by this item is included in the "Interest Rate and Market Risk Management" section of the MD&A on page 70[423](index=423&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=87&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's consolidated financial statements, management's report on internal controls, and the independent auditor's unqualified opinion - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2024, and concluded that **it was effective**, with no material weaknesses identified[428](index=428&type=chunk) - The independent auditor, Ernst & Young LLP, issued an **unqualified opinion**, stating that the consolidated financial statements present fairly the financial position and results of operations in conformity with U.S. GAAP[438](index=438&type=chunk) - The auditor also issued an **unqualified opinion on the effectiveness** of the Bank's internal control over financial reporting as of December 31, 2024[431](index=431&type=chunk) - The auditor identified the **Allowance for Loan and Lease Losses (ALLL) as a Critical Audit Matter** due to the complex and subjective judgments involved in weighing economic scenarios and determining qualitative adjustments[442](index=442&type=chunk)[445](index=445&type=chunk) Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $88,775 | $87,203 | | Loans Held for Investment, Net | $58,714 | $57,095 | | Total Deposits | $76,223 | $74,961 | | Total Liabilities | $82,651 | $81,512 | | Total Shareholders' Equity | $6,124 | $5,691 | Consolidated Income Statement Highlights (in millions) | Account | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Interest Income | $2,430 | $2,438 | $2,520 | | Provision for Credit Losses | $72 | $132 | $122 | | Noninterest Income | $700 | $677 | $632 | | Noninterest Expense | $2,046 | $2,097 | $1,878 | | Net Income | $784 | $680 | $907 | - The notes provide detailed explanations of significant accounting policies, fair value measurements, investment securities, loans and the allowance for credit losses, derivative instruments, leases, goodwill, debt, equity, regulatory matters, and segment information[457](index=457&type=chunk)[471](index=471&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=158&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[693](index=693&type=chunk) [Item 9A. Controls and Procedures](index=158&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024 - The CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2024[694](index=694&type=chunk) [Item 9B. Other Information](index=159&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the year ended December 31, 2024 - No directors or officers adopted, modified, or terminated a Rule 10b5-1(c) trading arrangement during 2024[696](index=696&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=159&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) Not applicable - None[697](index=697&type=chunk) PART III [Items 10-14](index=159&type=section&id=Items%2010-14) Information for Items 10-14 is incorporated by reference from the company's 2025 Proxy Statement - Items 10, 11, 12, 13, and 14 are incorporated by reference from the company's Proxy Statement[699](index=699&type=chunk)[700](index=700&type=chunk)[702](index=702&type=chunk)[703](index=703&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=160&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and all exhibits filed with the Form 10-K report - This section lists the financial statements and all exhibits filed with the Form 10-K[705](index=705&type=chunk)[706](index=706&type=chunk) [Item 16. Form 10-K Summary](index=164&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[712](index=712&type=chunk)

Fourth Quarter 2024 Financial Highlights [Overview of Q4 2024 Performance](index=1&type=section&id=Overview%20of%20Q4%202024%20Performance) The company reported strong Q4 earnings driven by higher net interest income and margin expansion Q4 2024 Key Financial Metrics vs. Prior Periods | Metric | Q4 2024 | Q4 2023 | Q3 2024 | | :--- | :--- | :--- | :--- | | Net Earnings | $200 million | $116 million | $204 million | | Diluted EPS | $1.34 | $0.78 | $1.37 | | Net Interest Income | $627 million | $583 million | $620 million | | Net Interest Margin (NIM) | 3.05% | 2.91% | 3.03% | | Adjusted PPNR | $312 million | $262 million | $299 million | | CET1 Capital Ratio (Est.) | 10.9% | 10.3% | 10.7% | - CEO Harris H. Simmons highlighted the continued improvement in financial performance, noting a **9% increase in adjusted taxable-equivalent revenue** against a 4% rise in adjusted noninterest expense, leading to a **19% increase in adjusted PPNR** compared to the year-ago period[3](index=3&type=chunk) - Credit quality showed a mixed picture: **net loan losses increased to 0.24% annualized**, mainly due to a single commercial credit, however, **nonperforming loans decreased by 18%** from the third quarter[3](index=3&type=chunk)[4](index=4&type=chunk) Results of Operations [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin increased year-over-year due to lower funding costs and asset growth Net Interest Income and Margin Analysis (Q4 2024 vs. Q4 2023) | Metric | Q4 2024 | Q4 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Interest Income | $627 million | $583 million | +$44 million (+8%) | | Net Interest Margin | 3.05% | 2.91% | +14 bps | | Yield on Earning Assets | 5.13% | 5.15% | -2 bps | | Cost of Total Deposits | 1.93% | 2.06% | -13 bps | - The increase in net interest income was driven by a **$2.3 billion (3%) growth** in average interest-earning assets and a decrease in the rate paid on total deposits and interest-bearing liabilities to 2.12% from 2.25% in the prior year[7](index=7&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income rose significantly, propelled by strong growth in capital markets fees and securities gains Noninterest Income Breakdown (Q4 2024 vs. Q4 2023) | Category | Q4 2024 | Q4 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Customer-Related Income | $173 million | $150 million | +15% | | - Capital Markets Fees | $37 million | $19 million | +95% | | Noncustomer-Related Income | $20 million | -$2 million | NM | | **Total Noninterest Income** | **$193 million** | **$148 million** | **+30%** | - The primary drivers of the increase in customer-related income were an **$18 million rise in capital markets fees** and a $4 million increase in both commercial account fees and loan-related fees[12](index=12&type=chunk) - Noncustomer-related income improved by $22 million, mainly due to a **$12 million increase in fair value and nonhedge derivative income** and a $9 million increase in net securities gains[13](index=13&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Total noninterest expense declined due to a prior-year FDIC assessment, though adjusted expenses rose moderately Noninterest Expense Breakdown (Q4 2024 vs. Q4 2023) | Category | Q4 2024 | Q4 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Salaries and Employee Benefits | $321 million | $301 million | +7% | | Deposit Insurance & Regulatory | $17 million | $109 million | -84% | | **Total Noninterest Expense** | **$509 million** | **$581 million** | **-12%** | | **Adjusted Noninterest Expense** | **$509 million** | **$489 million** | **+4%** | - The significant YoY decrease in total noninterest expense was almost entirely due to a **$90 million accrual for an FDIC special assessment** in Q4 2023 that did not recur at the same level[14](index=14&type=chunk) - The **efficiency ratio improved to 62.0%** from 65.1% in the prior year, as growth in adjusted taxable-equivalent revenue outpaced the 4% increase in adjusted noninterest expense[15](index=15&type=chunk) Balance Sheet Analysis [Investment Securities](index=5&type=section&id=Investment%20Securities) The investment securities portfolio decreased year-over-year, primarily due to principal reductions Investment Securities Portfolio (December 31, 2024) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Available-for-sale (fair value) | $9.1 billion | $10.3 billion | -12% | | Held-to-maturity (amortized cost) | $9.7 billion | $10.4 billion | -7% | | **Total Investment Securities** | **$18.8 billion** | **$20.7 billion** | **-9%** | [Loans and Leases](index=5&type=section&id=Loans%20and%20Leases) Total loans and leases experienced modest growth, led by the consumer and commercial loan portfolios Loan Portfolio Breakdown (December 31, 2024) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Commercial | $31.0 billion | $30.6 billion | +1% | | Commercial Real Estate | $13.5 billion | $13.4 billion | +1% | | Consumer | $15.0 billion | $13.8 billion | +8% | | **Total Loans and Leases** | **$59.4 billion** | **$57.8 billion** | **+3%** | [Credit Quality](index=6&type=section&id=Credit%20Quality) Credit quality metrics showed signs of stress, with a significant increase in classified loans and net charge-offs Key Credit Quality Metrics (Q4 2024 vs. Q4 2023) | Metric | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Provision for Credit Losses | $41 million | <$1 million | | Net Charge-offs (annualized) | 0.24% | 0.06% | | Nonperforming Assets | $298 million | $228 million | | Classified Loans | $2,870 million | $825 million | | Ratio of Classified Loans to Total Loans | 4.83% | 1.43% | - The increase in the Allowance for Credit Losses (ACL) to **$741 million** reflects loan growth, credit deterioration, and higher reserves for commercial real estate (CRE), offset by improved economic forecasts[18](index=18&type=chunk) - The significant increase in classified loans was primarily in multifamily and industrial CRE portfolios, attributed to a greater emphasis on current cash flows in risk grading and weaker performance of 2021-2022 construction loan vintages[20](index=20&type=chunk) [Deposits and Borrowed Funds](index=7&type=section&id=Deposits%20and%20Borrowed%20Funds) Total deposits grew slightly with a shift to interest-bearing accounts, while borrowed funds decreased Deposit Composition (December 31, 2024 vs. 2023) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Noninterest-bearing Demand | $24.7 billion | $26.2 billion | -6% | | Interest-bearing | $51.5 billion | $48.7 billion | +6% | | **Total Deposits** | **$76.2 billion** | **$75.0 billion** | **+2%** | - The **loan-to-deposit ratio remained stable at 78%** compared to 77% in the prior year quarter[21](index=21&type=chunk) - Long-term debt increased due to a new **$500 million subordinated note issuance**, which was partially offset by the redemption of $88 million of existing notes[22](index=22&type=chunk) [Shareholders' Equity and Capital](index=7&type=section&id=Shareholders%27%20Equity%20and%20Capital) Shareholders' equity and capital ratios strengthened, supported by earnings and improved AOCI - The company redeemed all outstanding shares of its Series G, I, and J preferred stock for **$374 million** in Q4 2024[24](index=24&type=chunk) - Accumulated other comprehensive loss (AOCI) improved by $312 million from the prior year to a loss of **$2.4 billion**, reflecting changes in the fair value of available-for-sale securities[26](index=26&type=chunk) Capital Ratios and Book Value (December 31, 2024 vs. 2023) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | CET1 Capital Ratio (Est.) | 10.9% | 10.3% | | Tangible Book Value per Share | $33.85 | $28.30 | Full Year 2024 Performance Summary [Full Year 2024 vs. 2023](index=16&type=section&id=Full%20Year%202024%20vs.%202023) Full-year earnings increased on stable net interest income, higher noninterest income, and lower expenses Full Year Income Statement Highlights (2024 vs. 2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Interest Income | $2,430 million | $2,438 million | | Provision for Credit Losses | $72 million | $132 million | | Total Noninterest Income | $700 million | $677 million | | Total Noninterest Expense | $2,046 million | $2,097 million | | Net Earnings to Common | $737 million | $648 million | | Diluted EPS | $4.95 | $4.35 | Supplemental Information [Conference Call and Company Profile](index=8&type=section&id=Conference%20Call%20and%20Company%20Profile) The company will host a conference call to discuss results and operates as a major financial firm in the western US - A supplemental presentation and conference call to discuss Q4 results are scheduled for 5:30 p.m. ET on January 21, 2025[28](index=28&type=chunk) - As of December 31, 2024, Zions Bancorporation, N.A. has approximately **$89 billion in total assets** and operates in 11 western states[29](index=29&type=chunk) [Forward-Looking Information](index=8&type=section&id=Forward-Looking%20Information) The report includes forward-looking statements that are subject to various economic and operational risks - The earnings release includes forward-looking statements regarding the company's plans, expectations, and future financial performance[30](index=30&type=chunk) - Key risk factors that could affect future results include changes in economic conditions, interest rates, regulatory policies, credit quality, and technological disruptions[31](index=31&type=chunk) Consolidated Financial Statements (Appendix) [Financial Tables](index=11&type=section&id=Financial%20Tables) This section contains detailed unaudited consolidated financial statements and supporting schedules - The appendix includes comprehensive financial data supporting the results discussed in the press release, such as: Financial Highlights (p. 11), Consolidated Balance Sheets (p. 13), Consolidated Statements of Income (p. 14, 16), Loan Balances (p. 17), Nonperforming Assets (p. 17), Allowance for Credit Losses (p. 18), and Average Balance Sheets with Yields/Rates (p. 20-21)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Non-GAAP Financial Measures (Appendix) [Reconciliation of Non-GAAP Measures](index=22&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP metrics like Tangible Common Equity and Adjusted PPNR to their GAAP equivalents - The company provides reconciliations for non-GAAP measures to help investors assess performance on the same basis as management[45](index=45&type=chunk) Q4 2024 Non-GAAP Reconciliation Highlights | Metric | GAAP Value | Adjustment | Non-GAAP Value | | :--- | :--- | :--- | :--- | | Net Earnings to Common | $200 million | +$1 million | $201 million (Adjusted) | | Total Shareholders' Equity | $6,124 million | -$1,052 million | $5,072 million (Tangible) | | PPNR | $323 million | -$11 million | $312 million (Adjusted) |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR | | Trading | Name of Each Exchange on Which | | --- | --- | --- | | Title of Each Class | Symbols | Registered | | Common Stock, par value $0.001 | ZION | The NASDAQ Stock Market LLC | | Depositary Shares each representing a 1/40th ownership interest in a share of: | | | | Series A Flo ...