Zions Bancorporation, National Association Reports Second Quarter Financial Results

Rhea-AI Summary

Zions Bancorporation (NASDAQ: ZION) reported strong Q2 2025 financial results with net earnings of $243 million, or $1.63 per diluted share, marking a significant increase from $190 million ($1.28 per share) in Q2 2024 and $169 million ($1.13 per share) in Q1 2025.

Key highlights include a 27% year-over-year increase in earnings per share and a 14% rise in adjusted pre-provision net revenue. The bank's net interest margin improved to 3.17% from 2.98% year-over-year, while customer-related noninterest income grew by 7%. Average loans increased by 4% compared to last year, with net charge-offs remaining low at 7 basis points of average loans.

Positive

• Net earnings increased to $243 million, up from $190 million year-over-year
• Earnings per share grew 27% compared to prior year
• Net interest margin improved to 3.17% from 2.98% year-over-year
• Customer-related noninterest income rose 7%
• Average loans increased 4% year-over-year
• Low net charge-offs of only 7 basis points of average loans

Negative

• Average deposits remained relatively flat
• Signs of moderate economic slowing observed in western U.S. markets

Insights

Banking Financial Analyst

Zions reports strong Q2 with 27% EPS growth, improving interest margins, and solid credit quality despite economic uncertainties.

Zions Bancorporation delivered an impressive second quarter with net earnings of $243 million ($1.63 per diluted share), representing substantial growth of 27% year-over-year and 44% sequentially from Q1. This performance significantly exceeded the previous year's $190 million ($1.28 per share).

The bank's net interest margin—a critical profitability metric—expanded to 3.17%, up 19 basis points from 2.98% a year ago. This margin improvement directly contributes to the bank's enhanced earnings profile despite a challenging interest rate environment. The expansion likely stems from asset repricing and effective balance sheet management.

On the lending front, average loans grew by 4% year-over-year, demonstrating Zions' ability to expand its core business despite economic uncertainties. Deposit levels remained stable, providing a solid funding base. Customer-related noninterest income increased by 7%, suggesting successful cross-selling efforts and fee generation across the bank's western U.S. footprint.

Credit quality remains exceptionally strong with net charge-offs at just 7 basis points of average loans—well below historical norms and industry averages. This indicates robust underwriting standards and a resilient loan portfolio despite economic headwinds.

Management's tone regarding economic conditions has shifted toward cautious optimism. While acknowledging signs of moderate economic slowing, including stabilization in western housing markets, CEO Harris Simmons expressed increased optimism about growth prospects for the second half of 2025. This suggests the bank's internal economic models and customer interactions are showing more positive signals than previously anticipated.

SALT LAKE CITY, July 21, 2025 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) ("Zions" or "the Bank") today reported net earnings applicable to common shareholders for the second quarter of 2025 of $243 million, or $1.63 per diluted common share, compared with net earnings applicable to common shareholders of $190 million, or $1.28 per diluted common share, for the second quarter of 2024, and net earnings applicable to common shareholders of $169 million, or $1.13 per diluted common share, for the first quarter of 2025.

Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "We're very pleased with the quarter's strong financial results, with earnings per share up 27% over the prior year period, and adjusted pre-provision net revenue up 14%. The net interest margin continued to improve, increasing to 3.17% from 2.98% a year ago, and customer-related noninterest income rose 7%."

Mr. Simmons continued, "Though average deposits were relatively flat, average loans were up 4% over last year. Credit results remained solid, with net charge-offs of only 7 basis points of average loans. While there are some signs of moderate slowing, including a stabilization of housing costs in many western U.S. markets, the economy has performed somewhat better than might have been expected earlier in the year, and we're incrementally more optimistic about growth in the back half of the year than we'd previously been."

For the full version of the Bank's 2025 second 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 second quarter results at 5:30 p.m. ET on July 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 13754751, 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 increases in the national debt, elevated inflation, economic slowdowns or recessions, and other macroeconomic challenges; changes in interest and reference rates, which could negatively impact our revenues and expenses, the valuation of our assets and liabilities, and the availability and cost of capital and liquidity; and deterioration in economic conditions may result in increased loan and lease losses;
• Political developments, including those 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;
• Evolving trade policies and disputes, such as proposed and implemented tariffs and resulting market volatility and uncertainty, including the effects on supply chains, expenses and revenues for both us and our customers;
• 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 emerging technologies, including stablecoins and other digital currencies, blockchain, artificial intelligence, quantum computing, and related innovations affecting both 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 and information security systems, along with effective controls designed to guard against fraud, cybersecurity, and privacy risks and related incidents, particularly given the accelerating pace at which threat actors are developing and deploying increasingly sophisticated and targeted tactics against the financial services industry;
• 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, 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; 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 (NASDAQ: ZION) Q2 2025 earnings per share?

Zions reported earnings of $1.63 per diluted share for Q2 2025, up 27% from $1.28 in Q2 2024.

How did Zions' net interest margin perform in Q2 2025?

Zions' net interest margin improved to 3.17%, up from 2.98% a year ago.

What was Zions' loan growth in Q2 2025?

Zions reported average loan growth of 4% compared to the previous year.

How did Zions' credit quality perform in Q2 2025?

Credit quality remained strong with net charge-offs of only 7 basis points of average loans.

What was Zions' total net earnings for Q2 2025?

Zions reported net earnings of $243 million, compared to $190 million in Q2 2024 and $169 million in Q1 2025.