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 ...

Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 July 21, 2025 www.zionsbancorporation.com Second 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: 2Q25 Net Earnings of $243 million, diluted EPS of $1.63 compared with 2Q24 Net Earnings of $190 million, diluted EPS of $1.28, and 1Q25 Net Earnings of $169 million, diluted EPS of $1.13 SECOND QUARTER RESULTS | ...

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)

www.zionsbancorporation.com Fourth Quarter 2024 Financial Results: FOR IMMEDIATE RELEASE Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 January 21, 2025 Investor Contact: Shannon Drage (801) 844-8208 Media Contact: Rob Brough (801) 844-7979 Zions Bancorporation, N.A. reports: 4Q24 Net Earnings of $200 million, diluted EPS of $1.34 compared with 4Q23 Net Earnings of $116 million, diluted EPS of $0.78, and 3Q24 Net Earnings of $204 million, diluted EPS of $1.37 | | | FOURTH QUARTER | | RES ...

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 ...

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) Zions Bancorporation's third-quarter 2024 financial performance and strategic commentary from the CEO are highlighted [Third Quarter 2024 Performance Summary](index=1&type=section&id=Third%20Quarter%202024%20Performance%20Summary) Zions Bancorporation reported strong Q3 2024 results with net earnings of **$204 million** and **$1.37 diluted EPS**, alongside improved **NIM of 3.03%** and **CET1 ratio of 10.7%** Q3 2024 Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Earnings ($ million) | $204 | $168 | $190 | | Diluted EPS ($) | $1.37 | $1.13 | $1.28 | | Net Interest Margin (NIM) (%) | 3.03% | 2.93% | 2.98% | | Estimated CET1 Ratio (%) | 10.7% | 10.2% | 10.6% | Q3 2024 Operational Highlights (vs. Q3 2023) | Category | Metric | Value | Change (YoY) | | :--- | :--- | :--- | :--- | | Income & Revenue | Net Interest Income ($ million) | $620 | +6% | | | PPNR (Adjusted) ($ million) | $299 | +10% | | | Customer-related Noninterest Income ($ million) | $161 | +3% | | Balance Sheet | Loans and Leases ($ billion) | $58.9 | +3% | | | Total Deposits ($ billion) | $75.7 | +0.4% | | | Short-term Borrowings ($ billion) | $2.9 | -33% | | Credit Quality | Provision for Credit Losses ($ million) | $13 | vs. $41 | | | Net Charge-offs (annualized) (%) | 0.02% | vs. 0.10% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Chairman and CEO Harris H. Simmons highlighted a **21% EPS increase** driven by stronger net interest margin and controlled costs, while addressing rising classified loans and announcing a strategic branch acquisition - Financial performance improved, with a **21% increase in EPS** over the prior year, a strengthened **NIM of 3.03%**, and a modest **1% rise in operating costs**[4](index=4&type=chunk) - Average noninterest-bearing demand deposits showed signs of stabilization, decreasing only **1.7%** from the prior quarter but remaining flat to the prior quarter's ending balance[4](index=4&type=chunk) - Classified loans increased **66%** quarter-over-quarter, mainly due to weaker performance in multi-family residential loans, but realized credit losses remained very low at an annualized rate of **0.02% of loans**[4](index=4&type=chunk) - Announced an agreement to acquire four branches from FirstBank in California's Coachella Valley, which includes approximately **$730 million in deposits** and **$420 million in loans**[4](index=4&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) Zions Bancorporation's operational results are analyzed, focusing on net interest income, noninterest income, and noninterest expenses [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased **6%** to **$620 million** in Q3 2024, with net interest margin expanding **10 basis points** to **3.03%** due to higher asset yields Net Interest Income and Margin Performance | Metric | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Interest Income ($ million) | $620 | $585 | +$35 (+6%) | | Net Interest Margin (%) | 3.03% | 2.93% | +10 bps | | Yield on Earning Assets (%) | 5.35% | 5.02% | +33 bps | | Cost of Total Deposits (%) | 2.14% | 1.92% | +22 bps | - The increase in NII was primarily due to higher yields on interest-earning assets, which rose **33 basis points** year-over-year, outpacing the **22 basis point** increase in the cost of total deposits[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) - Average interest-earning assets grew by **$2.2 billion (3%)** YoY, driven by increases in money market investments and loans, partially offset by a decline in securities[11](index=11&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Total noninterest income decreased **4%** to **$172 million**, despite a **3%** rise in customer-related income driven by **56%** growth in capital markets fees Noninterest Income Breakdown (in millions) | Category | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Customer-related noninterest income | $161 | $157 | +3% | | *Capital markets fees* | *$28* | *$18* | *+56%* | | *Loan-related fees and income* | *$17* | *$23* | *-26%* | | Fair value and nonhedge derivative income (loss) | ($3) | $7 | NM | | Dividends and other income | $5 | $12 | -58% | | **Total noninterest income** | **$172** | **$180** | **-4%** | - The growth in customer-related income was primarily driven by a **$10 million** increase in capital markets fees from swaps, loan syndication, and real estate activities[13](index=13&type=chunk) - The overall decline was influenced by a **$10 million** decrease in fair value and nonhedge derivative income and a **$7 million** drop in dividends and other income[14](index=14&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Total noninterest expense increased modestly by **1%** to **$502 million**, driven by salaries and technology costs, while the efficiency ratio improved to **62.5%** Noninterest Expense Breakdown (in millions) | Category | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $317 | $311 | +2% | | Technology, telecom, and info processing | $66 | $62 | +6% | | Professional and legal services | $14 | $16 | -13% | | **Total noninterest expense** | **$502** | **$496** | **+1%** | - The increase in salaries and benefits was mainly due to a decline in capitalized salaries from reduced software development and higher benefits accruals[15](index=15&type=chunk) - The efficiency ratio improved to **62.5%** from **64.4%** a year ago, reflecting better revenue generation relative to expenses[16](index=16&type=chunk) [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet%20Analysis) Zions Bancorporation's balance sheet components, including investment securities, loans, and deposits, are analyzed for key trends and changes [Investment Securities](index=5&type=section&id=Investment%20Securities) The investment securities portfolio decreased **7%** to **$19.4 billion** due to principal reductions, maintaining a stable estimated duration of **3.6%** Investment Securities Portfolio (in millions) | Category | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Available-for-sale, at fair value | $9,495 | $10,148 | -6% | | Held-to-maturity, at amortized cost | $9,857 | $10,559 | -7% | | **Total investment securities** | **$19,352** | **$20,707** | **-7%** | - The decrease of **$1.4 billion** in the securities portfolio was largely due to principal reductions. The bank primarily holds securities that can provide liquidity through secured borrowing without needing to be sold[17](index=17&type=chunk) [Loans and Leases](index=5&type=section&id=Loans%20and%20Leases) Total loans and leases grew **3%** to **$58.9 billion**, driven by an **8%** increase in consumer loans and a **2%** rise in commercial loans Loan Portfolio Breakdown (in millions) | Category | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Commercial | $30,785 | $30,208 | +2% | | Commercial real estate | $13,483 | $13,140 | +3% | | Consumer | $14,616 | $13,545 | +8% | | **Total loans and leases** | **$58,884** | **$56,893** | **+3%** | - Consumer loan growth of **$1.1 billion** was primarily driven by the 1-4 family residential portfolio, while commercial loan growth of **$0.6 billion** was concentrated in the commercial and industrial portfolio[18](index=18&type=chunk) [Deposits and Borrowed Funds](index=7&type=section&id=Deposits%20and%20Borrowed%20Funds) Total deposits remained stable at **$75.7 billion**, with a shift from noninterest-bearing to interest-bearing deposits, while total borrowed funds decreased **29%** to **$3.5 billion** Deposit Composition (in millions) | Category | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Noninterest-bearing demand | $24,973 | $26,733 | -7% | | Interest-bearing | $50,745 | $48,666 | +4% | | **Total deposits** | **$75,718** | **$75,399** | **+0.4%** | - Customer deposits (excluding brokered deposits) increased to **$70.5 billion** from **$68.8 billion** in the prior year. The loan-to-deposit ratio was **78%**, up from **75%** YoY[22](index=22&type=chunk) - Total borrowed funds decreased by **$1.4 billion (29%)** from the prior year, mainly due to a reduction in security repurchase agreements[23](index=23&type=chunk) [Credit Quality](index=6&type=section&id=Credit%20Quality) Zions Bancorporation's credit quality is assessed through provisions for credit losses, nonperforming assets, and classified loans [Provision and Allowance for Credit Losses](index=6&type=section&id=Provision%20and%20Allowance%20for%20Credit%20Losses) Provision for credit losses decreased to **$13 million**, with the Allowance for Credit Losses (ACL) stable at **$736 million (1.25% of loans)** and minimal net charge-offs Key Credit Quality Metrics | Metric | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Provision for credit losses ($ million) | $13 | $41 | -$28 | | Allowance for credit losses (ACL) ($ million) | $736 | $738 | -$2 | | Net loan and lease charge-offs ($ million) | $3 | $14 | -$11 | | ACL to total loans ratio (%) | 1.25% | 1.30% | -5 bps | - The slight decrease in the ACL reflects improved economic forecasts and lower unfunded commitments, partially offset by reserves for portfolio-specific risks like Commercial Real Estate (CRE) and loan growth[19](index=19&type=chunk) [Nonperforming and Classified Assets](index=6&type=section&id=Nonperforming%20and%20Classified%20Assets) Nonperforming assets increased **68%** to **$368 million**, and classified loans rose significantly to **$2.1 billion**, primarily in multifamily commercial real estate Problem Asset Trends | Metric | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Nonperforming assets ($ million) | $368 | $219 | +68% | | Classified loans ($ billion) | $2.1 | $0.769 | +172% | | Ratio of nonperforming assets to loans (%) | 0.62% | 0.38% | +24 bps | | Ratio of classified loans to loans (%) | 3.55% | 1.35% | +220 bps | - The increase in classified loans was primarily in the multifamily CRE portfolio, as borrowers faced challenges from lower-than-expected leasing, rent concessions, and higher costs and interest rates[21](index=21&type=chunk) - Despite the increase in classified loans, the bank noted that its multifamily CRE portfolio benefits from strong underwriting, high borrower equity, and guarantor support[21](index=21&type=chunk) [Capital and Shareholders' Equity](index=7&type=section&id=Capital%20and%20Shareholders%27%20Equity) Zions Bancorporation's capital position and shareholders' equity, including key capital ratios and dividend information, are reviewed [Shareholders' Equity and Capital Ratios](index=7&type=section&id=Shareholders%27%20Equity%20and%20Capital%20Ratios) Total shareholders' equity increased **20%** to **$6.4 billion**, driven by retained earnings and reduced AOCI, with the estimated CET1 ratio improving to **10.7%** Shareholders' Equity Components (in millions) | Category | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Retained earnings | $6,564 | $6,157 | +7% | | Accumulated other comprehensive loss (AOCI) | ($2,336) | ($3,008) | +22% | | **Total shareholders' equity** | **$6,385** | **$5,315** | **+20%** | - Tangible book value per common share saw a significant increase to **$33.12** from **$25.75** in the prior year, driven by higher retained earnings and reduced unrealized losses in AOCI[26](index=26&type=chunk) Estimated Regulatory Capital Ratios | Ratio | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Common equity tier 1 (CET1) (%) | 10.7% | 10.2% | | Tier 1 risk-based capital (%) | 11.4% | 10.9% | | Total risk-based capital (%) | 13.2% | 12.8% | | Tier 1 leverage (%) | 8.6% | 8.3% | [Financial Statements and Supplemental Data](index=10&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) Detailed consolidated financial statements and supplemental data tables are provided for comprehensive financial analysis [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) Detailed unaudited Consolidated Balance Sheets and Statements of Income provide a comprehensive view of the company's financial position and performance [Loan and Credit Quality Details](index=15&type=section&id=Loan%20and%20Credit%20Quality%20Details) Detailed schedules on loan portfolio composition, nonperforming assets, allowance for credit losses, and net charge-offs offer deeper insight into credit risk [Consolidated Average Balance Sheets, Yields and Rates](index=18&type=section&id=Consolidated%20Average%20Balance%20Sheets%2C%20Yields%20and%20Rates) Consolidated average balance sheets, asset yields, and liability rates are presented, crucial for analyzing net interest margin and profitability drivers [Non-GAAP Financial Measures](index=19&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures used by management to assess performance are explained and reconciled in this section [Reconciliation of Non-GAAP Measures](index=19&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Reconciliations of GAAP to non-GAAP financial measures, including Tangible Common Equity, Adjusted PPNR, and Efficiency Ratio, are provided for consistent performance assessment - The company uses non-GAAP measures like Tangible Common Equity to provide a basis for evaluating performance more consistently, whether a business was acquired or developed internally[45](index=45&type=chunk) - The Efficiency Ratio and Adjusted PPNR are used to measure operating expense relative to revenue and assess the ability to generate capital, respectively. Adjustments are made to exclude items not expected to recur frequently[50](index=50&type=chunk) Key Non-GAAP Metrics (Q3 2024) | Metric | Value | | :--- | :--- | | Return on average tangible common equity (%) | 17.4% | | Tangible book value per common share ($) | $33.12 | | Adjusted PPNR ($ million) | $299 | | Efficiency ratio (%) | 62.5% |

PART I. FINANCIAL INFORMATION [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=4&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Zions Bancorporation reported improved Q2 2024 diluted EPS of $1.28, driven by increased net interest income and a significant reduction in credit loss provisions, despite a decline in noninterest income | Financial Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $1.28 | $1.11 | +15.3% | | Net Interest Income | $597 million | $591 million | +1% | | Net Interest Margin | 2.98% | 2.92% | +6 bps | | Provision for Credit Losses | $5 million | $46 million | -89.1% | | Customer-related Noninterest Income | $154 million | $162 million | -5% | | Noninterest Expense | $509 million | $508 million | Stable | | Net Loan & Lease Charge-offs (% of avg. loans) | 0.10% | 0.09% | +1 bp | - Customer deposits (excluding brokered deposits) grew by **$3.6 billion**, or **5%**, year-over-year to **$69.5 billion**[19](index=19&type=chunk) - Classified loans increased to **$1.3 billion** (**2.16%** of total loans) from **$768 million** (**1.35%**) in the prior year, and nonperforming assets rose to **$265 million** (**0.45%**) from **$164 million** (**0.29%**), primarily due to a small number of commercial and industrial and term commercial real estate loans[19](index=19&type=chunk) [Results of Operations](index=5&type=section&id=RESULTS%20OF%20OPERATIONS) Q2 2024 results showed a 1% rise in net interest income and a lower provision for credit losses, offsetting a 5% decline in noninterest income, with stable noninterest expenses [Balance Sheet Analysis](index=18&type=section&id=BALANCE%20SHEET%20ANALYSIS) The balance sheet as of June 30, 2024, shows a 1% increase in loans, a 5% decrease in investment securities, and a 2% decrease in total deposits, with a higher loan-to-deposit ratio [Risk Management](index=23&type=section&id=RISK%20MANAGEMENT) The company actively manages credit, interest rate, and liquidity risks, maintaining strong underwriting, asset-sensitive positioning, robust liquidity, and investment-grade credit ratings [Capital Management](index=40&type=section&id=Capital%20Management) The bank maintained a strong capital position with all regulatory ratios exceeding well-capitalized requirements, including a CET1 ratio of 10.6%, supported by increased shareholders' equity | Capital Ratio | June 30, 2024 | Dec 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Common equity tier 1 (CET1) | 10.6% | 10.3% | 10.0% | | Tier 1 risk-based | 11.2% | 10.9% | 10.7% | | Total risk-based | 13.1% | 12.8% | 12.5% | | Tier 1 leverage | 8.5% | 8.3% | 8.0% | - Total shareholders' equity increased by **$334 million** (**6%**) to **$6.0 billion** since December 31, 2023, driven by retained earnings and a **$143 million** improvement in Accumulated Other Comprehensive Loss (AOCI)[155](index=155&type=chunk) | Capital Distributions (Six Months Ended June 30) | 2024 | 2023 | | :--- | :--- | :--- | | Common dividends paid | $122 million | $122 million | | Bank common stock repurchased | $35 million | $50 million | | **Total distributed to common shareholders** | **$157 million** | **$172 million** | [Non-GAAP Financial Measures](index=42&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) The company utilizes non-GAAP measures like tangible common equity ratios, adjusted PPNR, and the efficiency ratio to provide a clearer view of operational performance | Non-GAAP Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Return on avg. tangible common equity | 17.5% | 17.8% | | Tangible book value per common share | $30.67 | $25.52 | | Efficiency ratio | 64.5% | 62.5% | | Adjusted PPNR | $278 million | $296 million | [Financial Statements (Unaudited)](index=45&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements provide the financial position, results of operations, and cash flows for Zions Bancorporation as of and for the three and six months ended June 30, 2024 [Consolidated Balance Sheets](index=45&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, the balance sheet shows total assets of $87.6 billion, with increased net loans and shareholders' equity, and a decrease in total deposits | Balance Sheet Item (in billions) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $87.6 | $87.2 | | Net Loans Held for Investment | $57.7 | $57.1 | | Total Investment Securities | $19.6 | $20.7 | | Total Deposits | $73.8 | $75.0 | | Total Shareholders' Equity | $6.0 | $5.7 | [Consolidated Statements of Income](index=46&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2024, net income rose to $201 million, or $1.28 diluted EPS, primarily due to a significantly lower provision for credit losses, despite stable net interest income | Income Statement Item (in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Interest Income | $597 | $591 | | Provision for Credit Losses | $5 | $46 | | Total Noninterest Income | $179 | $189 | | Total Noninterest Expense | $509 | $508 | | **Net Income** | **$201** | **$175** | | **Net Earnings Applicable to Common Shareholders** | **$190** | **$166** | | **Diluted EPS** | **$1.28** | **$1.11** | [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on fair value measurements, investment securities, loan portfolios, allowance for credit losses, derivative instruments, and other significant financial statement items [Quantitative and Qualitative Disclosures About Market Risk](index=94&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's most significant market risk is interest rate risk, which is actively monitored and managed - The company identifies interest rate and market risk as its most significant risks, which are discussed in detail in the MD&A section of the report[284](index=284&type=chunk) [Controls and Procedures](index=95&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2024, and concluded they were effective - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2024[285](index=285&type=chunk) - There were no material changes to internal control over financial reporting during the second quarter of 2024[285](index=285&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=95&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings with estimated possible losses up to $10 million in excess of accruals, not expected to materially impact financial condition - The company estimates the aggregate range of reasonably possible losses for certain significant legal matters to be from zero to approximately **$10 million** in excess of accrued amounts[263](index=263&type=chunk) - Two material civil cases mentioned are Lifescan Inc. and Johnson & Johnson Health Care Services v. Jef rey Smith, et. al., and Roche Diagnostics and Roche Diabetes Care Inc. v. Jef rey C. Smith, et. al., both related to the alleged fraudulent practices of a former borrower[265](index=265&type=chunk) [Risk Factors](index=95&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2023 Form 10-K - No material changes to risk factors were reported since the 2023 Form 10-K[287](index=287&type=chunk)

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 March 31, 2024 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 ...