Zions Bancorporation(ZION) - 2025 Q3 - Quarterly Results

Executive Summary & Third Quarter 2025 Highlights Zions Bancorporation reported Q3 2025 net earnings of $221 million and diluted EPS of $1.48, reflecting strong PPNR growth, improved net interest margin, and a $50 million C&I loan charge-off Third Quarter 2025 Financial Performance Overview Zions Bancorporation reported Q3 2025 net earnings of $221 million, with diluted EPS of $1.48, reflecting an increase from Q3 2024 but a decrease from Q2 2025. The net interest margin (NIM) improved to 3.28%, and the estimated common equity tier 1 (CET1) ratio stood at 11.3% Quarterly Financial Performance Summary | Metric | 3Q25 | 3Q24 | 2Q25 | | :-------------------------- | :----- | :----- | :----- | | Net Earnings (millions) | $221 | $204 | $243 | | Diluted EPS | $1.48 | $1.37 | $1.63 | | Net Interest Margin (NIM) | 3.28% | 3.03% | 3.17% | | Estimated CET1 Ratio | 11.3% | 10.7% | 11.0% | Key Financial and Operational Highlights The third quarter saw an 8% increase in net interest income and a 14% rise in pre-provision net revenue (PPNR) year-over-year. Loans and leases grew by 2%, while total deposits decreased by 1%. Credit quality was impacted by $50 million in charge-offs from two related C&I loans, leading to a higher annualized net charge-off ratio Key Financial and Operational Metrics | Metric | 3Q25 Value | YoY Change | | :------------------------------------ | :----------- | :--------- | | Net Interest Income (millions) | $672 | +8% | | Net Interest Margin (NIM) | 3.28% | +25 bps (from 3.03%) | | Pre-provision Net Revenue (PPNR) (millions) | $345 | +14% | | Adjusted PPNR (millions) | $352 | +18% | | Customer-related Noninterest Income (millions) | $163 | +3% | | Adjusted Customer-related Noninterest Income (millions) | $174 | +8% | | Noninterest Expense (millions) | $527 | +5% | | Adjusted Noninterest Expense (millions) | $520 | +4% | | Loans and Leases (billions) | $60.3 | +2% | | Total Deposits (billions) | $74.9 | -1% | | Customer Deposits (excl. brokered) (billions) | $71.1 | +1% | | Short-term Borrowings (billions) | $3.8 | +29% | | Estimated CET1 Capital Ratio | 11.3% | +60 bps (from 10.7%) | - Total loan and lease charge-offs included $50 million associated with two related C&I loans. The annualized ratio of net loan and lease charge-offs to average loans and leases was 0.37%, compared with 0.02% in the prior year period[4] - The provision for credit losses was $49 million, compared with $13 million in the prior year period, primarily due to two large related C&I loans[4] - Nonperforming assets were $324 million, or 0.54% of loans and leases and other real estate owned, compared with $368 million, or 0.62% in the prior year period[4] CEO Commentary on Performance and Credit Quality CEO Harris H. Simmons expressed satisfaction with core earnings, highlighting strong PPNR growth and an improved net interest margin. He noted a linked-quarter contraction in loans but robust growth in customer deposits and a significant increase in tangible book value per share. He also addressed a $50 million charge-off from two C&I loans due to detected irregularities, emphasizing that other charge-offs were minimal - Core earnings included 14% growth in pre-provision net revenue over the prior year period, and 18% on an adjusted basis[4] - The net interest margin increased 25 basis points over the prior year period, while customer-related noninterest income, adjusted for the net credit valuation adjustment, grew 8%[4] - Loans contracted at a 3% annualized linked-quarter rate, while deposits, excluding brokered deposits, grew at an annualized rate of 7%[4] - Tangible book value per share grew 17% over the past year[4] - The quarter's credit results were impacted by a $50 million charge-off and a $10 million specific reserve against the remaining balance, arising from loans to two related companies due to apparent irregularities and misrepresentations. Legal action has been initiated for recovery[4] - Excluding this loss, remaining net charge-offs were very benign at $6 million, or 4 basis points of average loans on an annualized basis[4] Detailed Results of Operations This section provides a detailed analysis of Zions Bancorporation's financial performance, covering net interest income, noninterest income, and noninterest expense, highlighting key drivers and changes Net Interest Income and Margin Analysis Net interest income increased by 8% year-over-year to $672 million, primarily driven by lower funding costs and a strategic shift in interest-earning assets towards higher-yielding loans, improving the net interest margin to 3.28% Net Interest Income and Margin Trends | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Net Interest Income | $672 | $620 | $52 | 8% | | Net Interest Margin | 3.28% | 3.03% | +25 bps | - | | Yield on interest-earning assets | 5.16% | 5.35% | -19 bps | - | | Rate paid on total deposits and interest-bearing liabilities | 1.92% | 2.36% | -44 bps | - | | Cost of deposits | 1.67% | 2.14% | -47 bps | - | - The increase in net interest income was primarily due to lower funding costs and a favorable shift in the composition of average interest-earning assets, reflecting growth in higher-yielding loans and a decline in lower-yielding money market investments and securities[8] - Average interest-earning assets declined $111 million from the prior year quarter, mainly due to a $1.2 billion reduction in average money market investments and a $1.2 billion decrease in average securities, partially offset by a $2.1 billion increase in average loans and leases[11] - Average interest-bearing liabilities decreased $641 million, or 1%, from the prior year quarter, primarily due to a $925 million reduction in average interest-bearing deposits (driven by a consumer product migration), partially offset by a $284 million increase in average borrowed funds[12] Noninterest Income Analysis Total noninterest income grew by 10% year-over-year to $189 million. Customer-related noninterest income increased by 3%, largely due to higher loan-related fees and increased loan syndication activity. Noncustomer-related noninterest income saw a significant 86% increase, boosted by a gain on the sale of a bank-owned property and higher FHLB stock dividends Noninterest Income Breakdown | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Total Noninterest Income | $189 | $172 | $17 | 10% | | Customer-related Noninterest Income | $163 | $158 | $5 | 3% | | Adjusted Customer-related Noninterest Income | $174 | $161 | $13 | 8% | | Noncustomer-related Noninterest Income | $26 | $14 | $12 | 86% | | Dividends and Other Income | $15 | $5 | $10 | NM | - Customer-related noninterest income growth was primarily driven by a $3 million increase in loan-related fees and income, largely resulting from increased loan sales activity[13] - Excluding the impact of the net CVA loss, capital markets fees and income increased $7 million, or 25%, from the prior year period, benefitting from increased loan syndication activity and higher swap fee revenue[13] - Noncustomer-related noninterest income growth was primarily driven by a $10 million increase in dividends and other income, mainly attributable to a $6 million gain on the sale of a bank-owned property and higher dividends received on FHLB stock[14] Noninterest Expense Analysis Total noninterest expense increased by 5% year-over-year to $527 million, primarily due to higher salaries and employee benefits, including severance and incentive compensation, as well as increased technology costs. Despite the expense growth, the efficiency ratio improved to 59.6%, reflecting positive operating leverage Noninterest Expense and Efficiency Ratio | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Total Noninterest Expense | $527 | $502 | $25 | 5% | | Adjusted Noninterest Expense | $520 | $499 | $21 | 4% | | Salaries and Employee Benefits | $337 | $317 | $20 | 6% | | Technology, Telecom, and Information Processing | $70 | $66 | $4 | 6% | | Efficiency Ratio | 59.6% | 62.5% | -2.9 ppt | - | - Salaries and employee benefits expense increased $20 million, primarily due to higher severance and other salary-related costs, along with increased incentive compensation accruals reflecting improved profitability[16] - Technology, telecom, and information processing expense increased $4 million, largely due to higher costs associated with application software, licensing, and maintenance[16] - The efficiency ratio improved to 59.6%, compared with 62.5%, reflecting positive operating leverage as adjusted pre-provision net revenue increased $53 million, or 18%[17] Balance Sheet and Capital Analysis This section analyzes Zions Bancorporation's balance sheet and capital position, detailing changes in investment securities, loan portfolios, credit quality, deposits, and shareholders' equity Investment Securities Overview Total investment securities decreased by 6% year-over-year to $18.2 billion, primarily due to principal reductions, net of reinvestments Investment Securities Trends | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Total Investment Securities | $18,229 | $19,352 | $(1,123) | (6)% | - The decrease in total investment securities was primarily due to principal reductions, net of reinvestments[18] Loans and Leases Portfolio Loans and leases, net of unearned income and fees, increased by 2% year-over-year to $60.3 billion. This growth was primarily driven by a $1.0 billion increase in consumer loans, particularly within the 1-4 family residential loan portfolio, and a $394 million increase in commercial loans, mainly in the commercial and industrial portfolio Loans and Leases Portfolio Growth | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Loans and Leases, net | $60,302 | $58,884 | $1,418 | 2% | | Consumer Loans | $15,646 | $14,616 | $1,030 | 7% | | Commercial Loans | $31,179 | $30,785 | $394 | 1% | - Growth in consumer loans was primarily within the 1-4 family residential loan portfolio[19] - Growth in commercial loans was primarily within the commercial and industrial loan portfolio[19] Credit Quality Performance The provision for credit losses significantly increased to $49 million in Q3 2025, largely due to $50 million in charge-offs and a $10 million specific reserve for two related C&I loans with detected irregularities. Despite this, nonperforming assets decreased year-over-year, while classified loans increased YoY but showed a linked-quarter decrease Credit Quality Metrics | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Provision for Credit Losses | $49 | $13 | $36 | NM | | Allowance for Credit Losses (ACL) | $725 | $736 | $(11) | (1)% | | Net Loan and Lease Charge-offs | $56 | $3 | $53 | NM | | Nonperforming Assets | $324 | $368 | $(44) | (12)% | | Classified Loans | $2,415 | $2,093 | $322 | 15% | | Ratio of ACL to loans and leases | 1.20% | 1.25% | -5 bps | - | | Annualized ratio of net loan and lease charge-offs to average loans | 0.37% | 0.02% | +35 bps | - | | Ratio of nonperforming assets to loans and leases and OREO | 0.54% | 0.62% | -8 bps | - | | Ratio of classified loans to total loans and leases | 4.00% | 3.55% | +45 bps | - | - Net loan and lease charge-offs included $50 million associated with revolving lines of credit extended to two related commercial borrowers, with an additional $10 million full reserve established against the remaining exposure due to detected irregularities and misrepresentations[21] - The year-over-year decrease in ACL primarily reflects lower reserves associated with commercial real estate (CRE) portfolio-specific risks, partially offset by more adverse economic scenarios and increased lending activity[20] - Classified loans decreased from $2.7 billion, or 4.43%, in the prior quarter to $2.4 billion, or 4.00%[22] Deposits and Borrowed Funds Total deposits decreased by 1% year-over-year but increased by 1% quarter-over-quarter. The YoY decline was mainly in interest-bearing deposits due to product migration and reduced brokered deposits, partially offset by growth in noninterest-bearing demand deposits. Total borrowed funds significantly increased by 51% YoY, driven by higher long-term debt issuances and short-term FHLB advances Deposits and Borrowed Funds Overview | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Total Deposits | $74,878 | $75,718 | $(840) | (1)% | | Interest-bearing Deposits | $48,745 | $50,745 | $(2,000) | (4)% | | Noninterest-bearing Demand Deposits | $26,133 | $24,973 | $1,160 | 5% | | Customer Deposits (excl. brokered) | $71,100 | $70,500 | $600 | 1% | | Total Borrowed Funds | $5,230 | $3,467 | $1,763 | 51% | | Loan-to-deposit ratio | 81% | 78% | +3 ppt | - | - The decrease in interest-bearing deposits was primarily due to the migration of a consumer interest-bearing product into a new noninterest-bearing offering, as well as a reduction in brokered deposits[24] - The growth in total borrowed funds was driven by higher levels of long-term debt and short-term advances from the FHLB, partially offset by a reduction in borrowings under the FRB Bank Term Funding Program[26] - Long-term debt increased due to the issuance of $500 million in 4.70% Fixed-to-Floating Senior Notes during 3Q25 and $500 million in 6.82% Fixed-to-Floating Subordinated Notes during 4Q24[26] Shareholders' Equity and Capital Ratios Total shareholders' equity increased by 8% year-over-year to $6.865 billion, primarily due to an increase in retained earnings and reduced unrealized losses in Accumulated Other Comprehensive Income (AOCI). The estimated Common Equity Tier 1 (CET1) capital ratio improved to 11.3%, and tangible book value per common share grew significantly by 17% Shareholders' Equity and Capital Ratios Summary | Metric | 3Q25 (millions) | 3Q24 (millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | :--------- | | Total Shareholders' Equity | $6,865 | $6,385 | $480 | 8% | | Preferred Stock | $66 | $440 | $(374) | (85)% | | Retained Earnings | $7,134 | $6,564 | $570 | 9% | | Accumulated Other Comprehensive Income (Loss) | $(2,056) | $(2,336) | $280 | 12% | | Common Dividends Paid (per share) | $0.45 | $0.41 | $0.04 | 10% | | Estimated CET1 Capital | $7,734 | $7,206 | $528 | 7% | | Estimated CET1 Capital Ratio | 11.3% | 10.7% | +60 bps | - | | Tangible Book Value per Common Share | $38.64 | $33.12 | $5.52 | 17% | - Preferred stock decreased $374 million due to the redemption of outstanding shares of Series G, I, and J preferred stock during the fourth quarter of 2024[27] - The AOCI loss improved by $280 million, largely reflecting a decline in the fair value of fixed-rate available-for-sale securities as a result of changes in interest rates[28] - Tangible book value per common share increased mainly due to an increase in retained earnings and reduced unrealized losses in AOCI[29] Corporate Information and Outlook This section provides details on Zions Bancorporation's supplemental presentation, company profile, and important disclosures regarding forward-looking statements and associated risk factors Supplemental Presentation and Conference Call Details Zions Bancorporation will host a supplemental presentation and conference call on October 20, 2025, at 5:30 p.m. ET to discuss its third-quarter results, inviting media, analysts, investors, and the public to participate via call or webcast - A supplemental presentation will be used to discuss third-quarter results at 5:30 p.m. ET on October 20, 2025[30] - The discussion can be joined by calling (877) 709-8150 (domestic and international) using meeting number 13756405, or via on-demand webcast available on www.zionsbancorporation.com[30](index=30&type=chunk) About Zions Bancorporation, N.A. Zions Bancorporation, N.A. is a leading financial services company operating in 11 western states, with annual net revenue of $3.1 billion in 2024 and total assets of approximately $89 billion at December 31, 2024. The company is recognized for its customer service in small- and middle-market banking, public finance advisory, and SBA lending, and is included in the S&P MidCap 400 and NASDAQ Financial 100 indices - Zions Bancorporation, N.A. is one of the nation's premier financial services companies[31] - Operates under local management teams and distinct brands in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming[31] Zions Bancorporation Key Figures | Metric | Value | | :-------------------- | :------------ | | Annual Net Revenue (2024) | $3.1 billion | | Total Assets (Dec 31, 2024) | ~$89 billion | - Consistent recipient of national and state-wide customer survey awards in small- and middle-market banking, and a leader in public finance advisory services and Small Business Administration lending[31] - Included in the S&P MidCap 400 and NASDAQ Financial 100 indices[31] Forward-Looking Statements and Risk Factors This section highlights that the earnings release contains forward-looking statements, which are subject to significant known and unknown risks and uncertainties that could cause actual results to differ materially from expectations. Key risk factors include changes in economic conditions, interest rates, regulatory policies, competitive landscape, emerging technologies, and geopolitical events. The company explicitly disclaims any obligation to update these statements - The earnings release contains "forward-looking statements" reflecting management's current expectations and assumptions, which are subject to known and unknown risks, uncertainties, and other factors[32] - Key factors that may cause material differences include: changes in general industry, political, and economic conditions (e.g., inflation, recessions, interest rates); effects of newly enacted and proposed regulations; actions by governments and central banks; competitive pressures; potential impacts of emerging technologies (AI, blockchain); cybersecurity risks; and geopolitical conflicts or natural disasters[33][35] - The company cautions against undue reliance on forward-looking statements and specifically disclaims any obligation to update them, except as required by law[34] Consolidated Financial Highlights (Summary) This section provides a condensed overview of Zions Bancorporation's key financial data, including balance sheet, income statement, share data, and selected ratios, across five quarters from September 30, 2025, to September 30, 2024 Financial Highlights Table This section provides a condensed overview of Zions Bancorporation's key financial data, including balance sheet, income statement, share data, and selected ratios, across five quarters from September 30, 2025, to September 30, 2024 Consolidated Financial Highlights | (In millions, except share, per share, and ratio data) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :---------------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | BALANCE SHEET | | | | | | | Loans held for investment, net of allowance (millions) | $59,623 | $60,143 | $59,244 | $58,714 | $58,190 | | Total assets (millions) | 88,533 | 88,893 | 87,992 | 88,775 | 87,032 | | Deposits (millions) | 74,878 | 73,800 | 75,692 | 76,223 | 75,718 | | Total shareholders' equity (millions) | 6,865 | 6,596 | 6,327 | 6,124 | 6,385 | | STATEMENT OF INCOME | | | | | | | Net earnings applicable to common shareholders (millions) | $221 | $243 | $169 | $200 | $204 | | Net interest income (millions) | 672 | 648 | 624 | 627 | 620 | | Taxable-equivalent net interest income (millions) | 683 | 661 | 635 | 639 | 632 | | Total noninterest income (millions) | 189 | 190 | 171 | 193 | 172 | | Total noninterest expense (millions) | 527 | 527 | 538 | 509 | 502 | | Pre-provision net revenue (millions) | 345 | 324 | 268 | 323 | 302 | | Adjusted pre-provision net revenue (millions) | 352 | 316 | 267 | 312 | 299 | | Provision for credit losses (millions) | 49 | (1) | 18 | 41 | 13 | | SHARE AND PER COMMON SHARE AMOUNTS | | | | | | | Net earnings per diluted common share | $1.48 | $1.63 | $1.13 | $1.34 | $1.37 | | Dividends | 0.45 | 0.43 | 0.43 | 0.43 | 0.41 | | Book value per common share | 46.05 | 44.24 | 42.43 | 40.97 | 40.25 | | Tangible book value per common share | 38.64 | 36.81 | 34.95 | 33.85 | 33.12 | | Weighted average diluted common shares outstanding (in thousands) | 147,125 | 147,053 | 147,387 | 147,329 | 147,150 | | Common shares outstanding (in thousands) | 147,640 | 147,603 | 147,567 | 147,871 | 147,699 | | SELECTED RATIOS AND OTHER DATA | | | | | | | Return on average assets (%) | 0.99 | 1.09 | 0.77 | 0.96 | 0.95 | | Return on average common equity (%) | 13.3 | 15.3 | 11.1 | 13.2 | 14.1 | | Return on average tangible common equity (%) | 16.0 | 18.7 | 13.4 | 16.0 | 17.4 | | Net interest margin (%) | 3.28 | 3.17 | 3.10 | 3.05 | 3.03 | | Cost of deposits (%) | 1.67 | 1.68 | 1.76 | 1.93 | 2.14 | | Efficiency ratio (%) | 59.6 | 62.2 | 66.6 | 62.0 | 62.5 | | Effective tax rate (%) | 22.1 | 21.8 | 28.9 | 20.0 | 22.7 | | Ratio of nonperforming assets to loans and leases and other real estate owned (%) | 0.54 | 0.51 | 0.51 | 0.50 | 0.62 | | Annualized ratio of net loan and lease charge offs to average loans (%) | 0.37 | 0.07 | 0.11 | 0.24 | 0.02 | | Ratio of total allowance for credit losses to loans and leases outstanding (%) | 1.20 | 1.20 | 1.24 | 1.25 | 1.25 | | Full-time equivalent employees | 9,286 | 9,440 | 9,392 | 9,406 | 9,503 | | CAPITAL RATIOS AND DATA | | | | | | | Tangible common equity ratio (%) | 6.5 | 6.2 | 5.9 | 5.7 | 5.7 | | Common equity tier 1 capital (millions) | $7,734 | $7,570 | $7,379 | $7,363 | $7,206 | | Risk-weighted assets (millions) | $68,634 | $69,026 | $68,132 | $67,685 | $67,305 | | Common equity tier 1 capital ratio (%) | 11.3 | 11.0 | 10.8 | 10.9 | 10.7 | | Tier 1 risk-based capital ratio (%) | 11.4 | 11.1 | 10.9 | 11.0 | 11.4 | | Total risk-based capital ratio (%) | 13.7 | 13.4 | 13.3 | 13.3 | 13.2 | | Tier 1 leverage ratio (%) | 8.8 | 8.5 | 8.4 | 8.3 | 8.6 | Consolidated Financial Statements (Detailed) This section presents Zions Bancorporation's detailed consolidated financial statements, including balance sheets and statements of income for both three-month and nine-month periods Consolidated Balance Sheets This section presents the consolidated balance sheets for Zions Bancorporation, detailing assets, liabilities, and shareholders' equity across five quarters, from September 30, 2025, to September 30, 2024 Consolidated Balance Sheets Overview | (In millions, shares in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | ASSETS | | | | | | | Cash and due from banks (millions) | $771 | $780 | $833 | $651 | $1,114 | | Money market investments (millions) | 3,537 | 2,921 | 3,016 | 4,303 | 2,347 | | Trading securities, at fair value (millions) | 134 | 180 | 64 | 35 | 68 | | Investment securities, net of allowance (millions) | 18,229 | 18,388 | 18,704 | 18,764 | 19,352 | | Loans held for sale (millions) | 215 | 172 | 112 | 74 | 97 | | Loans and leases, net of unearned income and fees (millions) | 60,302 | 60,833 | 59,941 | 59,410 | 58,884 | | Allowance for loan and lease losses (millions) | 679 | 690 | 697 | 696 | 694 | | Loans held for investment, net of allowance (millions) | 59,623 | 60,143 | 59,244 | 58,714 | 58,190 | | Other noninterest-bearing investments (millions) | 1,098 | 1,182 | 1,045 | 1,020 | 946 | | Premises, equipment, and software, net (millions) | 1,358 | 1,361 | 1,362 | 1,366 | 1,372 | | Goodwill and intangibles (millions) | 1,094 | 1,096 | 1,104 | 1,052 | 1,053 | | Other real estate owned (millions) | 5 | 5 | 2 | 1 | 5 | | Other assets (millions) | 2,603 | 2,665 | 2,606 | 2,795 | 2,596 | | Total assets (millions) | $88,533 | $88,893 | $87,992 | $88,775 | $87,032 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | Deposits: | | | | | | | Noninterest-bearing demand (millions) | $26,133 | $25,413 | $24,792 | $24,704 | $24,973 | | Interest-bearing (millions) | 48,745 | 48,387 | 50,900 | 51,519 | 50,745 | | Total deposits (millions) | 74,878 | 73,800 | 75,692 | 76,223 | 75,718 | | Federal funds and other short-term borrowings (millions) | 3,757 | 6,072 | 3,476 | 3,832 | 2,919 | | Long-term debt (millions) | 1,473 | 970 | 964 | 950 | 548 | | Reserve for unfunded lending commitments (millions) | 46 | 42 | 46 | 45 | 42 | | Other liabilities (millions) | 1,514 | 1,413 | 1,487 | 1,601 | 1,420 | | Total liabilities (millions) | 81,668 | 82,297 | 81,665 | 82,651 | 80,647 | | Shareholders' equity: | | | | | | | Preferred stock (millions) | 66 | 66 | 66 | 66 | 440 | | Common stock and additional paid-in capital (millions) | 1,721 | 1,713 | 1,706 | 1,737 | 1,717 | | Retained earnings (millions) | 7,134 | 6,981 | 6,805 | 6,701 | 6,564 | | Accumulated other comprehensive income (loss) (millions) | (2,056) | (2,164) | (2,250) | (2,380) | (2,336) | | Total shareholders' equity (millions) | 6,865 | 6,596 | 6,327 | 6,124 | 6,385 | | Total liabilities and shareholders' equity (millions) | $88,533 | $88,893 | $87,992 | $88,775 | $87,032 | Consolidated Statements of Income (Three Months Ended) This section provides the consolidated statements of income for the three months ended September 30, 2025, and prior quarters, detailing interest income and expense, noninterest income and expense, provision for credit losses, and net earnings Consolidated Statements of Income (Three Months) | (In millions, except share and per share amounts) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Interest income: | | | | | | | Interest and fees on loans (millions) | $898 | $875 | $850 | $873 | $899 | | Interest on money market investments (millions) | 41 | 50 | 53 | 60 | 67 | | Interest on securities (millions) | 125 | 126 | 125 | 129 | 138 | | Total interest income (millions) | 1,064 | 1,051 | 1,028 | 1,062 | 1,104 | | Interest expense: | | | | | | | Interest on deposits (millions) | 313 | 312 | 326 | 371 | 403 | | Interest on short- and long-term borrowings (millions) | 79 | 91 | 78 | 64 | 81 | | Total interest expense (millions) | 392 | 403 | 404 | 435 | 484 | | Net interest income (millions) | 672 | 648 | 624 | 627 | 620 | | Provision for credit losses: | | | | | | | Provision for loan and lease losses (millions) | 45 | 3 | 17 | 38 | 1 | | Provision for unfunded lending commitments (millions) | 4 | (4) | 1 | 3 | 12 | | Total provision for credit losses (millions) | 49 | (1) | 18 | 41 | 13 | | Net interest income after provision for credit losses (millions) | 623 | 649 | 606 | 586 | 607 | | Noninterest income: | | | | | | | Customer-related noninterest income (millions) | 163 | 164 | 158 | 176 | 158 | | Dividends and other income (millions) | 15 | 12 | 7 | 9 | 5 | | Securities gains (losses), net (millions) | 11 | 14 | 6 | 8 | 9 | | Total noninterest income (millions) | 189 | 190 | 171 | 193 | 172 | | Noninterest expense: | | | | | | | Salaries and employee benefits (millions) | 337 | 336 | 342 | 321 | 317 | | Technology, telecom, and information processing (millions) | 70 | 65 | 70 | 66 | 66 | | Occupancy and equipment, net (millions) | 42 | 40 | 41 | 42 | 40 | | Professional and legal services (millions) | 14 | 13 | 13 | 17 | 14 | | Marketing and business development (millions) | 11 | 12 | 11 | 10 | 12 | | Deposit insurance and regulatory expense (millions) | 16 | 20 | 22 | 17 | 19 | | Credit-related expense (millions) | 6 | 6 | 6 | 6 | 6 | | Other real estate expense, net (millions) | — | — | — | — | — | | Other (millions) | 31 | 35 | 33 | 30 | 28 | | Total noninterest expense (millions) | 527 | 527 | 538 | 509 | 502 | | Income before income taxes (millions) | 285 | 312 | 239 | 270 | 277 | | Income taxes (millions) | 63 | 68 | 69 | 54 | 63 | | Net income (millions) | 222 | 244 | 170 | 216 | 214 | | Preferred stock dividends (millions) | (1) | (1) | (1) | (10) | (10) | | Preferred stock redemption (millions) | — | — | — | (6) | — | | Net earnings applicable to common shareholders (millions) | $221 | $243 | $169 | $200 | $204 | | Net earnings per common share (Diluted) | $1.48 | $1.63 | $1.13 | $1.34 | $1.37 | Consolidated Statements of Income (Nine Months Ended) This section presents the consolidated statements of income for the nine months ended September 30, 2025, and September 30, 2024, providing a year-to-date comparison of financial performance Consolidated Statements of Income (Nine Months) | (In millions, except share and per share amounts) | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------------ | :----------- | :----------- | | Interest income: | | | | Interest and fees on loans (millions) | $2,623 | $2,641 | | Interest on money market investments (millions) | 144 | 170 | | Interest on securities (millions) | 376 | 420 | | Total interest income (millions) | 3,143 | 3,231 | | Interest expense: | | | | Interest on deposits (millions) | 951 | 1,169 | | Interest on short- and long-term borrowings (millions) | 248 | 259 | | Total interest expense (millions) | 1,199 | 1,428 | | Net interest income (millions) | 1,944 | 1,803 | | Provision for credit losses: | | | | Provision for loan losses (millions) | 65 | 34 | | Provision for unfunded lending commitments (millions) | 1 | (3) | | Total provision for credit losses (millions) | 66 | 31 | | Net interest income after provision for credit losses (millions) | 1,878 | 1,772 | | Noninterest income: | | | | Customer-related noninterest income (millions) | 485 | 463 | | Dividends and other income (millions) | 34 | 33 | | Securities gains (losses), net (millions) | 31 | 11 | | Total noninterest income (millions) | 550 | 507 | | Noninterest expense: | | | | Salaries and employee benefits (millions) | 1,015 | 966 | | Technology, telecom, and information processing (millions) | 205 | 194 | | Occupancy and equipment, net (millions) | 123 | 119 | | Professional and legal services (millions) | 40 | 47 | | Marketing and business development (millions) | 34 | 35 | | Deposit insurance and regulatory expense (millions) | 58 | 74 | | Credit-related expense (millions) | 18 | 19 | | Other real estate expense, net (millions) | — | (1) | | Other (millions) | 99 | 84 | | Total noninterest expense (millions) | 1,592 | 1,537 | | Income before income taxes (millions) | 836 | 742 | | Income taxes (millions) | 200 | 174 | | Net income (millions) | 636 | 568 | | Preferred stock dividends (millions) | (3) | (31) | | Net earnings applicable to common shareholders (millions) | $633 | $537 | | Net earnings per common share (Diluted) | $4.25 | $3.61 | Detailed Loan and Credit Quality Data This section provides detailed insights into Zions Bancorporation's loan portfolio composition, nonperforming assets, allowance for credit losses, and net charge-offs by portfolio type Loan Balances Held for Investment by Portfolio Type This table details the composition of Zions Bancorporation's loan balances held for investment, categorized by commercial, commercial real estate, and consumer portfolios, across five quarters Loan Balances by Portfolio Type | (In millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial: | | | | | | | Commercial and industrial (millions) | $17,222 | $17,526 | $16,900 | $16,891 | $16,757 | | Owner occupied (millions) | 9,267 | 9,377 | 9,321 | 9,333 | 9,381 | | Municipal (millions) | 4,341 | 4,376 | 4,412 | 4,364 | 4,270 | | Leasing (millions) | 349 | 367 | 377 | 377 | 377 | | Total commercial (millions) | 31,179 | 31,646 | 31,010 | 30,965 | 30,785 | | Commercial real estate: | | | | | | | Term (millions) | 11,008 | 11,186 | 10,878 | 10,703 | 10,650 | | Construction and land development (millions) | 2,469 | 2,425 | 2,715 | 2,774 | 2,833 | | Total commercial real estate (millions) | 13,477 | 13,611 | 13,593 | 13,477 | 13,483 | | Consumer: | | | | | | | 1-4 family residential (millions) | 10,423 | 10,431 | 10,312 | 9,939 | 9,489 | | Home equity credit line (millions) | 3,848 | 3,784 | 3,670 | 3,641 | 3,543 | | Construction and other consumer real estate (millions) | 769 | 743 | 762 | 810 | 997 | | Bankcard and other revolving plans (millions) | 477 | 496 | 472 | 457 | 461 | | Other (millions) | 129 | 122 | 122 | 121 | 126 | | Total consumer (millions) | 15,646 | 15,576 | 15,338 | 14,968 | 14,616 | | Total loans and leases (millions) | $60,302 | $60,833 | $59,941 | $59,410 | $58,884 | Nonperforming Assets Breakdown This table provides a detailed breakdown of nonperforming assets, including nonaccrual loans and other real estate owned, along with related ratios, across five quarters Nonperforming Assets and Ratios | (In millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------------------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Nonaccrual loans (millions) | $319 | $308 | $305 | $297 | $363 | | Other real estate owned (millions) | 5 | 5 | 2 | 1 | 5 | | Total nonperforming assets (millions) | $324 | $313 | $307 | $298 | $368 | | Ratio of nonperforming assets to loans and leases and other real estate owned (%) | 0.54 | 0.51 | 0.51 | 0.50 | 0.62 | | Accruing loans past due 90 days or more (millions) | $5 | $4 | $13 | $18 | $7 | | Ratio of accruing loans past due 90 days or more to loans and leases (%) | 0.01 | 0.01 | 0.02 | 0.03 | 0.01 | | Nonaccrual loans and accruing loans past due 90 days or more (millions) | $324 | $312 | $318 | $315 | $370 | | Ratio of nonperforming assets and accruing loans 90 days or more past due to loans and leases and other real estate owned (%) | 0.54 | 0.52 | 0.53 | 0.53 | 0.64 | | Accruing loans past due 30-89 days (millions) | $69 | $57 | $105 | $57 | $89 | | Classified loans (millions) | 2,415 | 2,697 | 2,891 | 2,870 | 2,093 | | Ratio of classified loans to total loans and leases (%) | 4.00 | 4.43 | 4.82 | 4.83 | 3.55 | Allowance for Credit Losses This table presents the allowance for loan and lease losses and the reserve for unfunded lending commitments, detailing movements due to provisions, charge-offs, and recoveries, along with key ratios, across five quarters Allowance for Credit Losses Details | (In millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------------------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Allowance for Loan and Lease Losses | | | | | | | Balance at beginning of period (millions) | $690 | $697 | $696 | $694 | $696 | | Provision for loan losses (millions) | 45 | 3 | 17 | 38 | 1 | | Loan and lease charge-offs (millions) | 67 | 16 | 24 | 41 | 15 | | Less: Recoveries (millions) | 11 | 6 | 8 | 5 | 12 | | Net loan and lease charge-offs (recoveries) (millions) | 56 | 10 | 16 | 36 | 3 | | Balance at end of period (millions) | $679 | $690 | $697 | $696 | $694 | | Ratio of allowance for loan losses to loans and leases, at period end (%) | 1.13 | 1.13 | 1.16 | 1.17 | 1.18 | | Ratio of allowance for loan losses to nonaccrual loans at period end (%) | 213 | 224 | 229 | 234 | 191 | | Annualized ratio of net loan and lease charge-offs (recoveries) to average loans (%) | 0.37 | 0.07 | 0.11 | 0.24 | 0.02 | | Reserve for Unfunded Lending Commitments | | | | | | | Balance at beginning of period (millions) | $42 | $46 | $45 | $42 | $30 | | Provision for unfunded lending commitments (millions) | 4 | (4) | 1 | 3 | 12 | | Balance at end of period (millions) | $46 | $42 | $46 | $45 | $42 | | Allowance for Credit Losses | | | | | | | Allowance for loan losses (millions) | $679 | $690 | $697 | $696 | $694 | | Reserve for unfunded lending commitments (millions) | 46 | 42 | 46 | 45 | 42 | | Total allowance for credit losses (millions) | $725 | $732 | $743 | $741 | $736 | | Ratio of ACL to loans and leases outstanding, at period end (%) | 1.20 | 1.20 | 1.24 | 1.25 | 1.25 | Nonaccrual Loans by Portfolio Type This table categorizes nonaccrual loans by commercial, commercial real estate, and consumer portfolios across five quarters, illustrating the distribution and trends of nonperforming loans Nonaccrual Loans by Portfolio Type | (In millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial: | | | | | | | Commercial and industrial (millions) | $107 | $113 | $121 | $114 | $173 | | Owner occupied (millions) | 40 | 39 | 25 | 31 | 29 | | Municipal (millions) | 2 | 5 | 10 | 11 | 11 | | Leasing (millions) | 4 | 2 | 2 | 2 | 2 | | Total commercial (millions) | 153 | 159 | 158 | 158 | 215 | | Commercial real estate: | | | | | | | Term (millions) | 70 | 60 | 58 | 59 | 67 | | Construction and land development (millions) | — | — | — | — | 2 | | Total commercial real estate (millions) | 70 | 60 | 58 | 59 | 69 | | Consumer: | | | | | | | 1-4 family residential (millions) | 63 | 58 | 56 | 49 | 47 | | Home equity credit line (millions) | 32 | 30 | 32 | 30 | 30 | | Bankcard and other revolving plans (millions) | 1 | 1 | 1 | 1 | 1 | | Other (millions) | — | — | — | — | 1 | | Total consumer (millions) | 96 | 89 | 89 | 80 | 79 | | Total nonaccrual loans (millions) | $319 | $308 | $305 | $297 | $363 | Net Charge-Offs by Portfolio Type This table details net loan and lease charge-offs (recoveries) by portfolio type for commercial, commercial real estate, and consumer loans across five quarters, providing insight into credit loss trends Net Charge-Offs by Portfolio Type | (In millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial: | | | | | | | Commercial and industrial (millions) | $50 | $8 | $13 | $35 | $3 | | Owner occupied (millions) | (1) | (1) | (1) | (1) | — | | Municipal (millions) | 3 | — | — | — | — | | Total commercial (millions) | 52 | 7 | 12 | 34 | 3 | | Commercial real estate: | | | | | | | Term (millions) | 2 | 1 | — | — | (2) | | Total commercial real estate (millions) | 2 | 1 | — | — | (2) | | Consumer: | | | | | | | 1-4 family residential (millions) | — | 1 | 1 | — | — | | Bankcard and other revolving plans (millions) | 1 | 1 | 2 | 2 | 2 | | Other (millions) | 1 | — | 1 | — | — | | Total consumer loans (millions) | 2 | 2 | 4 | 2 | 2 | | Total net charge-offs (recoveries) (millions) | $56 | $10 | $16 | $36 | $3 | Average Balance Sheets, Yields and Rates This section provides detailed average balance sheet data, including yields on interest-earning assets and rates paid on interest-bearing liabilities, for both three-month and nine-month periods Three Months Ended This table provides average balance sheet data, yields on interest-earning assets, and rates paid on interest-bearing liabilities for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024 Average Balance Sheets, Yields, and Rates (Three Months) | (In millions) | Sep 30, 2025 Average balance (millions) | Sep 30, 2025 Yield/Rate (%) | Jun 30, 2025 Average balance (millions) | Jun 30, 2025 Yield/Rate (%) | Sep 30, 2024 Average balance (millions) | Sep 30, 2024 Yield/Rate (%) | | :---------------------------------------------------------------- | :---------------- | :--------------- | :---------------- | :--------------- | :---------------- | :--------------- | | ASSETS | | | | | | | | Total money market investments (millions) | $3,522 | 4.67 | $4,300 | 4.68 | $4,715 | 5.67 | | Trading securities (millions) | 83 | 4.63 | 244 | 4.77 | 32 | 4.18 | | Total investment securities (millions) | 18,221 | 2.73 | 18,444 | 2.74 | 19,378 | 2.86 | | Loans held for sale (millions) | 171 | NM | 118 | NM | 104 | NM | | Total loans and leases (millions) | 60,786 | 5.91 | 60,460 | 5.86 | 58,665 | 6.15 | | Total interest-earning assets (millions) | 82,783 | 5.16 | 83,566 | 5.11 | 82,894 | 5.35 | | Total assets (millions) | $89,155 | | $89,985 | | $89,170 | | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | Total interest-bearing deposits (millions) | 49,381 | 2.51 | 49,536 | 2.52 | 50,306 | 3.19 | | Total borrowed funds (millions) | 6,606 | 4.76 | 7,769 | 4.70 | 6,322 | 5.06 | | Total interest-bearing liabilities (millions) | 55,987 | 2.78 | 57,305 | 2.82 | 56,628 | 3.40 | | Noninterest-bearing demand deposits (millions) | 24,922 | | 24,730 | | 24,723 | | | Total liabilities (millions) | 82,473 | | 83,562 | | 82,992 | | | Total shareholders' equity (millions) | 6,682 | | 6,423 | | 6,178 | | | Total liabilities and shareholders' equity (millions) | $89,155 | | $89,985 | | $89,170 | | | Spread on average interest-bearing funds (%) | | 2.38 | | 2.29 | | 1.95 | | Impact of net noninterest-bearing sources of funds (%) | | 0.90 | | 0.88 | | 1.08 | | Net interest margin (%) | | 3.28 | | 3.17 | | 3.03 | | Memo: total cost of deposits (millions) | $74,303 | 1.67 | $74,266 | 1.68 | $75,029 | 2.14 | | Memo: total deposits and interest-bearing liabilities (millions) | $80,909 | 1.92 | $82,035 | 1.97 | $81,351 | 2.36 | Nine Months Ended This table provides average balance sheet data, yields on interest-earning assets, and rates paid on interest-bearing liabilities for the nine months ended September 30, 2025, and September 30, 2024 Average Balance Sheets, Yields, and Rates (Nine Months) | (In millions) | Sep 30, 2025 Average balance (millions) | Sep 30, 2025 Yield/Rate (%) | Sep 30, 2024 Average balance (millions) | Sep 30, 2024 Yield/Rate (%) | | :---------------------------------------------------------------- | :---------------- | :--------------- | :---------------- | :--------------- | | ASSETS | | | | | | Total money market investments (millions) | $4,138 | 4.67 | $3,977 | 5.72 | | Trading securities (millions) | 117 | 4.68 | 35 | 4.42 | | Total investment securities (millions) | 18,439 | 2.74 | 19,835 | 2.87 | | Loans held for sale (millions) | 124 | NM | 68 | NM | | Total loans and leases (millions) | 60,298 | 5.87 | 58,289 | 6.11 | | Total interest-earning assets (millions) | 83,116 | 5.11 | 82,204 | 5.30 | | Total assets (millions) | $89,527 | | $88,573 | | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | Total interest-bearing deposits (millions) | 49,857 | 2.55 | 49,072 | 3.18 | | Total borrowed funds (millions) | 7,009 | 4.73 | 6,782 | 5.11 | | Total interest-bearing funds (millions) | 56,866 | 2.82 | 55,854 | 3.41 | | Noninterest-bearing demand deposits (millions) | 24,637 | | 25,136 | | | Total liabilities (millions) | 83,074 | | 82,640 | | | Total shareholders' equity (millions) | 6,453 | | 5,933 | | | Total liabilities and shareholders' equity (millions) | $89,527 | | $88,573 | | | Spread on average interest-bearing funds (%) | | 2.29 | | 1.89 | | Impact of net noninterest-bearing sources of funds (%) | | 0.89 | | 1.09 | | Net interest margin (%) | | 3.18 | | 2.98 | | Memo: total cost of deposits (millions) | $74,494 | 1.71 | $74,208 | 2.10 | | Memo: total deposits and interest-bearing liabilities (millions) | $81,503 | 1.98 | $80,990 | 2.34 | Non-GAAP Financial Measures Reconciliations This section provides reconciliations for non-GAAP financial measures, offering additional insights into Zions Bancorporation's performance and financial position beyond GAAP reporting Non-GAAP Measures Overview This section explains that the press release includes non-GAAP financial measures, which are used to provide a consistent basis for period-to-period comparisons and to assess performance. It acknowledges their inherent limitations and advises against using them in isolation from GAAP results - Non-GAAP financial measures are presented to provide useful information relevant to ongoing operating results and a meaningful basis for period-to-period comparisons[47] - These measures are used to assess performance and financial position, allowing investors to evaluate performance on the same basis as management and the financial services industry[47] - Non-GAAP financial measures have inherent limitations, are not necessarily comparable to similar measures from other companies, and should not be considered in isolation or as a substitute for GAAP results[48] Tangible Common Equity and Related Measures This section defines tangible common equity and related measures as non-GAAP metrics that exclude the impact of intangible assets, offering a clearer view of shareholders' equity and business performance. It includes tables reconciling GAAP net earnings to adjusted net earnings and calculating return on average tangible common equity, as well as tangible equity ratios and tangible book value per common share - Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets and their related amortization[49] - These measures provide useful information about the use of shareholders' equity and a basis for evaluating business performance more consistently[49] Return on Average Tangible Common Equity (Non-GAAP) | (Dollar amounts in millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Net earnings applicable to common shareholders (GAAP) (millions) | $221 | $243 | $169 | $200 | $204 | | Amortization of core deposit and other intangibles (net of tax) (millions) | 2 | 2 | 1 | 1 | 1 | | Adjusted net earnings applicable to common shareholders, net of tax (millions) | $223 | $245 | $170 | $201 | $205 | | Average common equity (GAAP) (millions) | $6,616 | $6,357 | $6,182 | $6,036 | $5,738 | | Average goodwill and intangibles (millions) | (1,095) | (1,097) | (1,052) | (1,053) | (1,054) | | Average tangible common equity (non-GAAP) (millions) | $5,521 | $5,260 | $5,130 | $4,983 | $4,684 | | Return on average tangible common equity (non-GAAP) (%) | 16.0 | 18.7 | 13.4 | 16.0 | 17.4 | Tangible Equity Ratios and Book Value Per Share (Non-GAAP) | (Dollar amounts in millions, except per share amounts) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total shareholders' equity (GAAP) (millions) | $6,865 | $6,596 | $6,327 | $6,124 | $6,385 | | Goodwill and intangibles (millions) | (1,094) | (1,096) | (1,104) | (1,052) | (1,053) | | Tangible equity (non-GAAP) (millions) | 5,771 | 5,500 | 5,223 | 5,072 | 5,332 | | Preferred stock (millions) | (66) | (66) | (66) | (66) | (440) | | Tangible common equity (non-GAAP) (millions) | $5,705 | $5,434 | $5,157 | $5,006 | $4,892 | | Total assets (GAAP) (millions) | $88,533 | $88,893 | $87,992 | $88,775 | $87,032 | | Goodwill and intangibles (millions) | (1,094) | (1,096) | (1,104) | (1,052) | (1,053) | | Tangible assets (non-GAAP) (millions) | $87,439 | $87,797 | $86,888 | $87,723 | $85,979 | | Common shares outstanding (in thousands) | 147,640 | 147,603 | 147,567 | 147,871 | 147,699 | | Tangible equity ratio (non-GAAP) (%) | 6.6 | 6.3 | 6.0 | 5.8 | 6.2 | | Tangible common equity ratio (non-GAAP) (%) | 6.5 | 6.2 | 5.9 | 5.7 | 5.7 | | Tangible book value per common share (non-GAAP) | $38.64 | $36.81 | $34.95 | $33.85 | $33.12 | Efficiency Ratio and Adjusted Pre-Provision Net Revenue This section explains the efficiency ratio and adjusted pre-provision net revenue (PPNR) as non-GAAP measures used to assess operating expense relative to revenue and the ability to generate capital, respectively. It includes tables reconciling GAAP noninterest expense to adjusted noninterest expense, and calculating PPNR and adjusted PPNR for both three-month and nine-month periods - The efficiency ratio is a measure of operating expense relative to revenue, providing useful information regarding the cost of generating revenue[52] - Adjustments are made to exclude certain items not generally expected to recur frequently, allowing for more consistent comparability across periods[52] - Adjusted pre-provision net revenue enables management and others to assess the company's ability to generate capital[52] Efficiency Ratio and Adjusted PPNR (Non-GAAP) (Three Months) | (Dollar amounts in millions) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Noninterest expense (GAAP) (millions) | $527 | $527 | $538 | $509 | $502 | | Total adjustments (millions) | 7 | 6 | 5 | — | 3 | | Adjusted noninterest expense (non-GAAP) (millions) | $520 | $521 | $533 | $509 | $499 | | Taxable-equivalent net interest income (non-GAAP) (millions) | 683 | 661 | 635 | 639 | 632 | | Adjusted customer-related noninterest income (non-GAAP) (millions) | 174 | 164 | 158 | 173 | 161 | | Adjusted noncustomer-related noninterest income (non-GAAP) (millions) | 15 | 12 | 7 | 9 | 5 | | Adjusted taxable-equivalent revenue (non-GAAP) (millions) | 872 | 837 | 800 | 821 | 798 | | Pre-provision net revenue (PPNR) (non-GAAP) (millions) | $345 | $324 | $268 | $323 | $302 | | Adjusted PPNR (non-GAAP) (millions) | $352 | $316 | $267 | $312 | $299 | | Efficiency ratio (non-GAAP) (%) | 59.6 | 62.2 | 66.6 | 62.0 | 62.5 | Efficiency Ratio and Adjusted PPNR (Non-GAAP) (Nine Months) | (Dollar amounts in millions) | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------------ | :----------- | :----------- | | Noninterest expense (GAAP) (millions) | $1,592 | $1,537 | | Total adjustments (millions) | 18 | 21 | | Adjusted noninterest expense (non-GAAP) (millions) | $1,574 | $1,516 | | Taxable-equivalent net interest income (non-GAAP) (millions) | 1,979 | 1,836 | | Adjusted customer-related noninterest income (non-GAAP) (millions) | 496 | 466 | | Adjusted noncustomer-related noninterest income (non-GAAP) (millions) | 34 | 33 | | Adjusted taxable-equivalent revenue (non-GAAP) (millions) | 2,509 | 2,335 | | Pre-provision net revenue (PPNR) (non-GAAP) (millions) | $937 | $806 | | Adjusted PPNR (non-GAAP) (millions) | $935 | $819 | | Efficiency ratio (non-GAAP) (%) | 62.7 | 64.9 |