Financial Performance - Net earnings for Q3 2025 were $221 million, with diluted EPS of $1.48, compared to $204 million and $1.37 in Q3 2024, and $243 million and $1.63 in Q2 2025 [2]. - Net income for Q3 2025 was $222 million, a decrease of 9% from $244 million in Q2 2025 [38]. - Net earnings applicable to common shareholders for the quarter ended September 30, 2025, were $221 million, down from $243 million in the previous quarter [36]. - The return on average assets decreased to 0.99% from 1.09% in the previous quarter [36]. - The return on average tangible common equity for the three months ended September 30, 2025, was 16.0%, compared to 17.4% for the same period in 2024 [50]. Revenue and Income - Net interest income increased by 8% to $672 million, with a net interest margin (NIM) of 3.28%, up from 3.03% in the prior year [4]. - Total interest income for Q3 2025 was $1,064 million, a 1.2% increase from $1,051 million in Q2 2025 [38]. - Noninterest income for Q3 2025 was $189 million, slightly down from $190 million in Q2 2025 [38]. - Customer-related noninterest income was $163 million, up 3%, while adjusted customer-related noninterest income increased by 6% to $174 million [13]. - Noncustomer-related noninterest income surged by 86% to $26 million, driven by a $10 million increase in dividends and other income [14]. Expenses and Efficiency - Noninterest expense increased by $25 million, or 5%, year-over-year, with salaries and employee benefits rising by $20 million due to higher severance and incentive compensation costs [16]. - Total noninterest expense for Q3 2025 was $527 million, unchanged from Q2 2025 [38]. - Adjusted noninterest expense rose by $21 million, or 4%, while the efficiency ratio improved to 59.6% from 62.5%, reflecting an 18% increase in adjusted pre-provision net revenue [17]. - The efficiency ratio improved to 59.6%, down from 62.5% in the prior year [5]. - The efficiency ratio decreased to 59.6% from 62.2% in the prior quarter, demonstrating improved operational efficiency [53]. Loans and Credit Quality - Total loans and leases reached $60.3 billion, a 2% increase, while nonperforming assets decreased to $324 million, or 0.54% of loans and leases [4]. - The provision for credit losses was $49 million, significantly higher than $13 million in the previous year, primarily due to two large related commercial and industrial loans [4]. - The provision for credit losses was $49 million for the quarter, compared to a negative provision of $(1) million in the previous quarter [36]. - Nonperforming assets totaled $324 million, or 0.54% of total loans and leases, down from $368 million, or 0.62%, in the prior year [22]. - The annualized ratio of net loan and lease charge-offs to average loans was 0.37%, up from 0.07% in the previous quarter [36]. Capital and Equity - The estimated CET1 capital ratio improved to 11.3%, compared to 10.7% in the prior year [4]. - Total shareholders' equity increased by $269 million, or 4%, to $6.865 billion compared to the previous quarter and by $480 million, or 8%, compared to the same quarter last year [27]. - Estimated common equity tier 1 (CET1) capital rose to $7.7 billion, a 7% increase from $7.2 billion in the prior year period, with a CET1 capital ratio of 11.3%, up from 10.7% [29]. - Tangible book value per common share increased by $5.52, or 17%, to $38.64, primarily due to an increase in retained earnings and reduced unrealized losses in accumulated other comprehensive income (AOCI) [29]. - Tangible common equity rose to $5,705 million, reflecting a growth from $5,434 million quarter-over-quarter [51]. Deposits and Borrowings - Total deposits were $74.9 billion, down 1%, but customer deposits (excluding brokered deposits) increased by 1% to $71.1 billion [4]. - Total deposits rose to $74,878 million as of September 30, 2025, up from $73,800 million in June 2025 [37]. - Total borrowed funds increased by $1.8 billion, or 51%, year-over-year, driven by higher long-term debt and short-term advances [26]. - The loan-to-deposit ratio was 81%, compared to 78% in the prior year quarter [25]. - Total interest-bearing deposits decreased to $49,381 million with an average yield of 2.51%, down from $50,306 million and 3.19% a year ago [45]. Assets and Securities - Total assets as of September 30, 2025, were $88,533 million, a slight decrease from $88,893 million in June 2025 [36]. - Total assets as of September 30, 2025, were $89,155 million, a slight decrease from $89,170 million a year earlier [45]. - Total investment securities decreased by $1.1 billion, or 6%, to $18.2 billion compared to the prior year, primarily due to principal reductions [18]. - The average balance of investment securities was $18,221 million with a yield of 2.73% for the three months ended September 30, 2025 [45]. - Total liabilities were $82,473 million, a decrease from $82,992 million a year earlier [45].
ZIONS(ZIONL) - 2025 Q3 - Quarterly Results