Zions Bancorporation, National Association Reports First Quarter Financial Results

Rhea-AI Summary

Zions Bancorporation (NASDAQ: ZION) reported Q1 2025 net earnings of $169 million, or $1.13 per diluted share, showing an 18% increase from $143 million ($0.96/share) in Q1 2024, but down from $200 million ($1.34/share) in Q4 2024.

Key highlights include a 16 basis point increase in net interest margin and a 10% rise in adjusted pre-provision net revenue. The quarter included an $0.11 per share tax charge due to Utah tax law changes affecting securities portfolio income. The bank completed acquisition of four California branches from FirstBank, adding $630 million in deposits and $420 million in loans.

Credit quality remained stable with nonperforming assets at 0.51% of loans and leases, and annualized net charge-offs at 0.11%.

Positive

• 18% increase in net earnings year-over-year to $169 million
• 16 basis point improvement in net interest margin
• 10% increase in adjusted pre-provision net revenue
• Strategic expansion through acquisition of four California branches adding $630M deposits and $420M loans
• Stable credit quality metrics with low nonperforming assets (0.51%) and net charge-offs (0.11%)

Negative

• 15.5% decrease in earnings from Q4 2024 ($200M to $169M)
• $0.11 per share tax charge impact due to Utah tax law changes
• Management notes uncertain economic outlook due to potential tariff and trade policy impacts

Insights

Financial Analyst

Zions reports 18% YoY earnings growth with improved margins and strategic expansion, despite one-time tax charge and cautious economic outlook.

Zions Bancorporation's Q1 2025 results show net earnings of $169 million ($1.13 per diluted share), representing an 18% increase compared to Q1 2024's $143 million ($0.96 per share). While this demonstrates strong year-over-year improvement, it's worth noting the sequential decline from Q4 2024's $200 million ($1.34 per share).

The 16 basis point expansion in net interest margin is particularly significant as this core profitability metric directly impacts earnings power in banking operations. This improvement, alongside the 10% increase in adjusted pre-provision net revenue, indicates strengthening fundamental performance.

The $0.11 per share tax charge stemming from Utah tax law changes warrants special attention. Without this one-time item, EPS would approximate $1.24, boosting year-over-year growth to nearly 29%. Importantly, this tax change brings future benefits, as it will reduce taxation on securities income going forward, and most of the charge should accrete back over time.

Strategic growth is evident in the acquisition of four Coachella Valley branches, adding $630 million in deposits and $420 million in loans. This transaction strengthens California Bank & Trust's market position with a favorable 67% loan-to-deposit ratio on the acquired assets.

Credit quality remains robust with nonperforming assets at 0.51% and annualized net charge-offs at 0.11%, unchanged from the previous quarter, indicating disciplined underwriting standards despite economic uncertainties.

Management's cautious commentary regarding potential impacts from tariffs and trade policies demonstrates prudent risk awareness, balanced by confidence in the bank's credit culture and reserve positioning. This suggests appropriate preparation for navigating potentially challenging economic conditions.

SALT LAKE CITY, April 21, 2025 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) ("Zions" or "the Bank") today reported net earnings applicable to common shareholders for the first quarter of 2025 of $169 million, or $1.13 per diluted common share, compared with net earnings applicable to common shareholders of $143 million, or $0.96 per diluted common share, for the first quarter of 2024, and net earnings applicable to common shareholders of $200 million, or $1.34 per diluted common share, for the fourth quarter of 2024.

Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "First quarter net income and earnings per share increased 18% from last year's period, to $169 million and $1.13, respectively. This reflects a 16 basis point increase in the net interest margin and a 10% increase in adjusted pre-provision net revenue. The results also reflect an $0.11 per share charge to income tax expense resulting from a beneficial Utah tax law change on securities portfolio income, requiring a revaluation of our deferred tax assets, primarily those associated with accumulated other comprehensive income. Most of this charge is expected to accrete back into income over the life of the securities that gave rise to these deferred tax assets. The tax law change will additionally reduce the tax on securities income in future periods."

Mr. Simmons continued, "In late March we completed the acquisition of four branches in California's Coachella Valley from FirstBank of Denver, Colorado, adding approximately $630 million in deposits and $420 million in loans. We look forward to serving these new customers of our affiliate, California Bank & Trust."

Mr. Simmons concluded, "Credit quality remained in very good shape during the quarter, with nonperforming assets stable compared with last quarter at 0.51% of loans and leases and annualized net charge-offs of 0.11% of loans and leases. At the same time, the outlook for the economy is perhaps more uncertain than it's been in a number of years, clouded by the very real potential for negative impacts from tariffs and trade policy, both here and abroad. We are nevertheless confident that our credit culture and practices and our strong reserves position us to manage through possible turbulence that might materialize in coming quarters."

For the full version of the Bank's 2025 first quarter earnings release, including financial schedules, please visit www.zionsbancorporation.com.

Supplemental Presentation and Conference Call

Zions has posted a supplemental presentation to its website, which will be used to discuss the first quarter results at 5:30 p.m. ET on April 21, 2025. Media representatives, analysts, investors, and the public are invited to join this discussion by calling (877) 709-8150 (domestic and international) and using the meeting number 13753109, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation, N.A.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with annual net revenue of $3.1 billion in 2024, and total assets of approximately $89 billion at December 31, 2024. Zions 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. The Bank is a consistent recipient of national and state-wide customer survey awards in small- and middle-market banking, as well as a leader in public finance advisory services and Small Business Administration lending. In addition, Zions is included in the S&P MidCap 400 and NASDAQ Financial 100 indices. Investor information and links to local banking brands can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

The earnings release includes "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements include, among others:

• Statements with respect to the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, results of operations, and performance of Zions Bancorporation, National Association, and its subsidiaries (collectively "Zions Bancorporation, N.A.," "the Bank," "we," "our," "us"); and
• Statements preceded or followed by, or that include the words "may," "might," "can," "continue," "could," "should," "would," "believe," "anticipate," "estimate," "forecasts," "expect," "intend," "target," "commit," "design," "plan," "projects," "will," and the negative thereof and similar words and expressions.

Forward-looking statements are not guarantees and should not be relied upon as representing management's views as of any subsequent date. Actual results and outcomes may differ materially from those presented. Although the following list is not comprehensive, key factors that may cause material differences include:

• The quality and composition of our loan and investment securities portfolios and the quality and composition of our deposits;
• Changes in general industry, political, and economic conditions, including elevated inflation, economic slowdown or recession, or other economic challenges; imposition of tariffs and resulting market volatility and uncertainty, including the effects on supply chains and revenues for us and our customers; changes in interest and reference rates, which could adversely affect our revenue and expenses, the value of assets and liabilities, and the availability and cost of capital and liquidity; and deterioration in economic conditions that may result in increased loan and lease losses;
• Political developments, including transitions in administration and shifts in congressional control that result in significant disruptions and changes in the size, scope, and effectiveness of the government and its agencies and services;
• The effects of newly enacted and proposed regulations affecting us and the banking industry, as well as changes and uncertainties in the interpretation, enforcement, and applicability of laws and fiscal, monetary, regulatory, trade, and tax policies;
• Actions taken by governments, agencies, central banks, and similar organizations, including those that result in decreases in revenue, increases in regulatory bank fees, insurance assessments, and capital standards; and other regulatory requirements;
• Judicial, regulatory and administrative inquiries, investigations, examinations or proceedings and the outcomes thereof that create uncertainty for, or are adverse to us or, the banking industry;
• Changes in our credit ratings;
• Our ability to innovate and otherwise address competitive pressures and other factors that may affect aspects of our business, such as pricing, relevance of, and demand for, our products and services, and our ability to recruit and retain talent;
• The potential for both positive and disruptive impacts of technological advancements, such as digital currencies and commerce, blockchain, artificial intelligence, quantum and cloud computing, and other innovations affecting us and the banking industry;
• Our ability to complete projects and initiatives and execute our strategic plans, manage our risks, control compensation and other expenses, and achieve our business objectives;
• Our ability to develop and maintain technology, information security systems, and controls designed to guard against fraud, cybersecurity, and privacy risks and related incidents;
• Our ability to provide adequate oversight of our suppliers to help us prevent or mitigate effects upon us and our customers of inadequate performance, systems failures, or cyber and other incidents by, or affecting, third parties upon whom we rely for the delivery of various products and services;
• The effects of wars, domestic and international trade policies and disputes, geopolitical conflicts, and other local, national, or international disasters, crises, or conflicts that may occur in the future;
• Natural disasters, pandemics, wildfires, catastrophic events, and other emergencies and incidents, and their impact on our and our customers' operations, business, and communities, including the increasing difficulty in, and the expense of, obtaining property, auto, business, and other insurance products;
• Governmental and social responses to environmental, social, and governance issues, including those with respect to climate change and diversity;
• Securities and capital markets behavior, including volatility and changes in market liquidity and our ability to raise capital;
• The possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and shareholders' equity;
• The impact of bank closures or adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks;
• Adverse news and other expressions of negative public opinion whether directed at us, other banks, the banking industry, or otherwise that may adversely affect our reputation and that of the banking industry generally;
• Protracted congressional negotiations regarding government funding and other issues, including those that add to the national debt, increase the possibility of government shutdowns, downgrades in United States ("U.S.") credit ratings, or other economic disruptions; and
• Other assumptions, risks, or uncertainties described in this earnings release, and other SEC filings.

We caution against undue reliance on forward-looking statements, which reflect our views only as of their date of issuance. Except as required by law, we specifically disclaim any obligation to update any factors or publicly announce revisions to forward-looking statements to reflect future events or developments.

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SOURCE Zions Bancorporation

FAQ

What were Zions Bancorporation's (ZION) Q1 2025 earnings per share?

Zions reported earnings of $1.13 per diluted share in Q1 2025, an 18% increase from $0.96 in Q1 2024.

How much did ZION's recent California branch acquisition add in deposits and loans?

The acquisition of four Coachella Valley branches added approximately $630 million in deposits and $420 million in loans.

What is ZION's current credit quality status in Q1 2025?

Credit quality remained stable with nonperforming assets at 0.51% of loans and leases, and annualized net charge-offs at 0.11%.

How did ZION's Q1 2025 earnings compare to previous quarters?

Q1 2025 earnings of $169 million were up 18% from Q1 2024 ($143 million) but down from Q4 2024 ($200 million).

What impact did the Utah tax law change have on ZION's Q1 2025 earnings?

The tax law change resulted in an $0.11 per share charge to income tax expense, requiring revaluation of deferred tax assets.