Zions Bancorporation(US:ZION) ZACKS·2025-10-21 14:26Core Insights - Zions Bancorporation (ZION) reported better-than-expected quarterly results, with adjusted earnings per share (EPS) of $1.54, surpassing the Zacks Consensus Estimate of $1.40, and reflecting a 12.4% increase year-over-year [1][10] Financial Performance - The company's net revenues (tax equivalent) reached $861 million, an 8.7% increase year-over-year, exceeding the Zacks Consensus Estimate of $845.5 million [4][10] - Net interest income (NII) was $672 million, up 8.4%, driven by lower funding costs and a favorable mix in average interest-earning assets, with net interest margin (NIM) expanding 25 basis points to 3.28% [5][10] - Non-interest income rose 9.9% to $189 million, with growth in almost all components except capital markets fees [6] - Adjusted non-interest expenses increased 4.2% to $520 million, while the adjusted efficiency ratio improved to 59.6% from 62.5% in the prior-year period, indicating increased profitability [6] Asset and Deposit Trends - As of September 30, 2025, net loans and leases held for investment were $59.6 billion, down approximately 1% from the prior quarter, while total deposits increased by 1.5% to $74.9 billion [7][10] Credit Quality - The ratio of non-performing assets to loans and leases contracted by 8 basis points year-over-year to 0.54%, although net loan and lease charge-offs rose significantly to $56 million from $3 million in the prior-year quarter [8] - Provision for credit losses was $49 million in the reported quarter, compared to $13 million in the year-ago quarter [8] Profitability and Capital Ratios - The Tier 1 leverage ratio improved to 8.8% from 8.6% in the prior-year quarter, and the common equity tier 1 capital ratio increased to 11.3% from 10.7% [9] - Return on average assets was 0.99%, up from 0.95% in the prior-year quarter, while return on average tangible common equity decreased to 16% from 17.4% [11]