Financial Performance - Zions Bancorporation reported annual net revenue of $3.1 billion for 2024 and total assets of approximately $89 billion as of December 31, 2024[18]. - Diluted EPS increased to $4.95 in 2024, up 14% from $4.35 in 2023, driven by lower provision for credit losses and higher noninterest income[172]. - Net interest income remained relatively flat at $2.43 billion, a slight decrease of 0.3% from $2.44 billion in 2023, with a net interest margin of 3.00%[178][179]. - Total loans and leases increased by $1.6 billion, or 3%, primarily due to growth in consumer and commercial loans[174]. - Total deposits rose by $1.3 billion, or 2%, with interest-bearing deposits increasing by $6.5 billion, or 15%[174][193]. - Provision for credit losses decreased by 45% to $72 million in 2024, compared to $132 million in 2023[178]. - Noninterest income increased by $19 million, or 3%, driven by higher capital markets and commercial account fees[174]. - Noninterest expenses decreased by $51 million, or 2%, primarily due to a reduction in deposit insurance and regulatory expenses[174]. - Common equity increased by 15% to $6.06 billion, reflecting strong capital growth[178]. - Total shareholders' equity increased to $6,053 million in 2024 from $5,279 million in 2023[196]. Capital Adequacy - At December 31, 2024, the Common Equity Tier 1 (CET1) ratio was 10.9%, exceeding the minimum requirement of 7.0%[37]. - The bank's Tier 1 risk-based capital ratio was 11.0%, above the minimum requirement of 8.5%[37]. - Total risk-based capital ratio stood at 13.3%, surpassing the minimum requirement of 10.5%[37]. - The Tier 1 leverage ratio was 8.3%, exceeding the minimum requirement of 4.0%[37]. - The company is subject to Basel III capital rules and has exceeded all capital adequacy requirements as of December 31, 2024[30]. - Internal stress tests indicate that capital ratios will exceed regulatory minimums and capital conservation buffer requirements throughout a nine-quarter horizon[46]. Employee and Workforce - Zions Bancorporation had 9,406 full-time equivalent employees at the end of 2024[18]. - At December 31, 2024, the company had 9,406 full-time equivalent employees, with approximately 58% being women and 38% identifying as part of a minority demographic[63]. - The company hosted over 1,000 training experiences in 2024 to support employee skill development and career advancement[70]. - The most recent pay equity review found no meaningful differences in pay levels across the workforce, ensuring fair compensation for all employees[73]. - The company had 9,406 full-time equivalent employees at the end of 2024, a decrease of 273 from the previous year[217]. Regulatory and Compliance - The CFPB's final rule under Section 1033 of the Dodd-Frank Act requires banks to provide consumer financial product information upon request, with compliance due by April 1, 2027[52][53]. - Proposed revisions to Regulation II could reduce fee income by approximately $10 million or more per year due to a nearly 30% decrease in the maximum permitted debit interchange fee[54]. - The company is subject to increased regulatory scrutiny and costs due to compliance with banking regulations, which may limit its business activities and growth potential[122]. Risk Management - Credit risk is a significant concern, with rising interest rates and market volatility potentially leading to increased charge-offs and higher allowances for credit losses[77]. - The Federal Reserve's tightened monetary policy has resulted in a decline in the value of fixed-rate loans and investment securities, impacting liquidity and risk management efforts[90]. - The company experienced heightened volatility in deposit levels and funding costs following notable bank closures in 2023, affecting liquidity and operating margins[89]. - The company is exposed to systemic risks that may arise from the interconnectedness of financial institutions, potentially leading to market-wide liquidity issues[93]. - Climate-related events and natural disasters pose risks to operations and financial results, particularly in regions vulnerable to such occurrences[104]. - The company faces significant cybersecurity risks, including threats from organized cybercrime and state-sponsored actors, which could adversely affect its business and financial performance[110]. - The company allocates resources to enhance cybersecurity defenses, but future incidents could still occur and impact operations[113]. - The complexity of accounting and regulatory compliance poses ongoing risks that could materially affect the company's financial reporting[118]. Business Operations - The bank served over one million customers through 404 branches and various digital offerings by year-end 2024[18]. - The bank operates through seven affiliate banks, emphasizing local authority and customization of products[19]. - The company operates 404 branches, with 275 owned and 129 leased, and its headquarters in Salt Lake City, Utah, is also leased[153]. - The company completed a multi-year project to replace core loan and deposit banking systems in July 2024, aimed at improving operational efficiency[98]. - The reliance on third-party suppliers for operational activities presents risks that could adversely affect business performance and customer service[106]. Strategic Focus - The company focuses on five strategic growth areas: commercial, small business, capital markets, wealth management, and consumer[169]. - The company invests in six key areas to achieve growth: people and empowerment, technology, marketing, operational excellence, risk management, and data and analytics[170]. Shareholder Actions - The company fully redeemed outstanding shares of Series G, I, and J preferred stock for approximately $374 million, resulting in a one-time reduction to net earnings of about $6 million[158]. - The company repurchased 0.9 million common shares for $35 million at an average price of $39.32 per share during the first quarter of 2024[161]. - The company declared a dividend of $0.43 per common share in January 2025, payable on February 20, 2025[160].
ZIONS BANCORPORA(ZIONP) - 2024 Q4 - Annual Report