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]
ZIONS(ZIONL) - 2025 Q2 - Quarterly Results