Zions Bancorporation(US:ZION)2026-01-20 21:09Financial Performance - 4Q25 net earnings were $262 million, with diluted EPS of $1.76, a 31% increase from 4Q24's $200 million and $1.34 EPS[1] - Annual net earnings for 2025 reached $895 million, up 21% from 2024's $737 million, with diluted EPS increasing from $4.95 to $6.01[1] - Net income for 2025 reached $899 million, representing a 14.7% increase from $784 million in 2024[38] - Net earnings applicable to common shareholders increased to $262 million in Q4 2025, up from $221 million in Q3 2025, representing an increase of 18.6%[35] - Net income for the quarter reached $263 million, compared to $222 million in the prior quarter, marking an 18.5% increase[37] Revenue and Income - Adjusted taxable-equivalent revenue for 4Q25 was $879 million, a 7.1% increase from the prior year, while adjusted noninterest expense rose 7.7% to $548 million[4] - Total noninterest income rose to $208 million in Q4 2025, compared to $189 million in Q3 2025, an increase of 10.0%[35] - Total noninterest income rose to $758 million in 2025, reflecting an increase of 8.3% compared to $700 million in 2024[38] - Customer-related noninterest income was $177 million in 4Q25, up 1% from 4Q24, while total noninterest income increased by 10% to $208 million[12] Loans and Credit Quality - Total loans and leases grew to $60.9 billion, a 3% increase from the previous quarter, with an annualized net loan and lease charge-off ratio of 0.05%[4] - The provision for credit losses was $6 million in 4Q25, significantly lower than $41 million in 4Q24, indicating improved credit quality[4] - The provision for loan losses for Q4 2025 was $6 million, down from $45 million in Q3 2025[41] - The ratio of nonperforming assets to loans and leases was 0.52% as of December 31, 2025, slightly down from 0.54% in the previous quarter[40] - The company reported net loan and lease charge-offs of $7 million for Q4 2025, with an annualized ratio of 0.05% to average loans[41] Deposits and Funding - Total deposits were $75.6 billion, down 1% from the previous quarter, while customer deposits (excluding brokered deposits) increased by 1% to $71.8 billion[4] - Total deposits rose to $75,644 million, an increase of 1.0% from $74,878 million in the previous quarter[36] - Total borrowed funds decreased by $206 million, or 4%, primarily due to a reduction in short-term advances[25] - Total liabilities stood at $81,810 million, a slight increase from $81,668 million in the previous quarter[36] Capital and Equity - The estimated Common Equity Tier 1 (CET1) capital ratio improved to 11.5%, up from 10.9% a year ago, reflecting strengthened capital position[4] - Total shareholders' equity increased to $7.18 billion, up 5% from $6.87 billion in the previous quarter and up 17% from $6.12 billion year-over-year[26] - Tangible book value per common share rose 21% to $40.79, indicating significant growth in shareholder equity[4] - Estimated common equity tier 1 (CET1) capital was $7.9 billion, an increase of 8% from $7.4 billion in the prior year, with a CET1 capital ratio of 11.5%, up from 10.9%[28] Expenses and Efficiency - Noninterest expense increased by $37 million, or 7%, compared to the prior year quarter, driven by a $20 million increase in marketing and business development expenses[15] - Adjusted noninterest expense rose by $39 million, or 8%, with an efficiency ratio of 62.3%, slightly up from 62.0%[16] - The efficiency ratio for Q4 2025 was 62.3%, compared to 59.6% in Q3 2025, indicating a decline in efficiency[35] - Noninterest expense (GAAP) for the three months ended December 31, 2025, was $546 million, an increase from $509 million in the same period of 2024[53] Assets and Investment - Total assets reached $88.990 billion as of December 31, 2025, compared to $88.533 billion at September 30, 2025, reflecting a growth of 0.5%[35] - Total investment securities decreased by $690 million, or 4%, to $18.1 billion, primarily due to principal reductions[17] - Total assets increased to $89,554 million as of December 31, 2025, compared to $88,823 million in 2024, reflecting a growth of 0.82%[45] - Total interest-earning assets amounted to $83,261 million with a net interest margin of 3.31% for the quarter, up from 3.28% in the prior quarter[44]