Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Q3 2025 Earnings Presentation
39 slides from Zions Bancorporation N.a's earnings presentation, Oct 20, 2025
Slide 1: Third Quarter 2025 Financial Review
ZIONS THIRD QUARTER 2025 Financial Review October 20, 2025
Slide 2: Forward-Looking Statements; Use of Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS; USE OF NON-GAAP FINANCIAL MEASURES Forward-Looking Information This presentation contains “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and assump
Slide 3: Financial Performance
FINANCIAL PERFORMANCE Third quarter results reflect margin expansion, improved efficiency, and customer deposit growth; EPS adversely impacted by elevated credit losses Change From: • Net earnings to common of $221 million Key Metrics 3Q25 2Q25 3Q24 declined versus the prior quarter due to credit (i
Slide 4: Diluted Earnings Per Share
DILUTED EARNINGS PER SHARE Earnings per share declined by $0.15 compared to prior quarter; improved revenue was offset by credit loss provision Diluted Earnings per Share Notable Items1: $1.63 3Q25 $1.48 $1.37 $1.34 $1.13 • $(0.06) per share negative impact from $11 million net CVA loss, primarily d
Slide 5: Pre-Provision Net Revenue (PPNR)
PRE-PROVISION NET REVENUE (“PPNR”) Adjusted PPNR increased 11% over the prior quarter and 18% over the prior-year period driven by improved revenue PPNR1 Linked quarter (3Q25 vs. 2Q25) ($ millions) • Adjusted PPNR increased 11%: • Tax-equivalent net interest income up 3% $352 • $345 Customer-related
Slide 6: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN Net interest margin improved 11 basis points sequentially; net interest income increased for both the linked quarter and year-over-year Net Interest Income Linked quarter (3Q25 vs. 2Q25) Net Interest Margin Net interest income increased 4%: • Interest income
Slide 7: Net Interest Margin
NET INTEREST MARGIN Improved loan yields and lower borrowings volume drove expansion versus prior quarter; deposit repricing lifted margin over the year-ago quarter Linked Quarter (3Q25 vs. 2Q25) Year-Over-Year (3Q25 vs. 3Q24) 0.58% 0.06% 3.17% 0.11% 0.08% 0.01% 3.28% 3.28% (0.04%) 2.98% (0.19%) (0.
Slide 8: Noninterest Income and Revenue
NONINTEREST INCOME AND REVENUE Adjusted customer-related fee income grew 6% versus prior quarter and 8% compared to year-ago quarter Customer-Related Noninterest Income 1,3 Total Revenue 2,3 ($ millions) ($ millions) $872 $176 $861 $174 $173 $838 $837 $821 $820 $800 $798 $795 $792 $164 $164 $163 $16
Slide 9: Noninterest Expense
NONINTEREST EXPENSE Adjusted noninterest expenses were down slightly compared to the prior quarter and increased 4% compared to the prior year quarter Linked quarter (3Q25 vs. 2Q25) Noninterest Expense (NIE) • Adjusted noninterest expense decreased $1 million, or ($ millions) 0.2% with increases in
Slide 10: Average Loans and Deposits
AVERAGE LOANS AND DEPOSITS Average yields on loans increased 5 basis points versus prior quarter while total cost of deposits decreased 1 basis point Average Total Loans Average Total Deposits Yield on Total Loans Total Cost of Deposits Total interest-bearing deposits reflect a 58% cumulative beta1
Slide 11: Deposit Balance and Borrowing Trends
DEPOSIT BALANCE AND BORROWING TRENDS Ending and average customer deposits increased 1.7% and 0.8%, respectively, compared to prior quarter Q3 2025 total funding costs decreased 5 basis points compared to prior quarter • Period-end customer deposits grew $1.2 billion (+1.7%) linked quarter, driven pr
Slide 12: Total Investment Securities & Money Market Investments
TOTAL INVESTMENT SECURITIES & MONEY MARKET INVESTMENTS The bank has strong on-balance sheet liquidity Total Investment Securities The investment securities portfolio is designed to be a storehouse of balance sheet liquidity and Money Market Investments (period-end balances) • Principal and prepaymen
Slide 13: Credit Quality
CREDIT QUALITY Net charge-offs increased largely due to two related loans while criticized and classified balances declined Key Credit Metrics Credit Quality Ratios • Net charge-offs relative to average loans: Criticized / Loans NPAs / Loans + OREO Classified / Loans • 0.37% annualized in 3Q25; incl
Slide 14: Commercial Real Estate Summary ($13.5 Billion Balance)
COMMERCIAL REAL ESTATE SUMMARY ($13.5 BILLION BALANCE) The commercial real estate portfolio is granular and well diversified, 22% of total loans CRE Portfolio Composition Term CRE ($11.0B) As of Sep 30, 2025 • Weighted average LTVs of < 60% Other, 12% • Maturity distribution over the next three year
Slide 15: Capital Strength
CAPITAL STRENGTH Loss-absorbing capital remains strong relative to our risk profile; low credit losses relative to capital levels as a percentage of risk-weighted assets Common Equity Tier 1 Capital Net Charge-offs and Allowance for Credit Losses annualized, as a percentage of risk-weighted assets a
Slide 16: Financial Outlook (3Q 2026E vs. 3Q 2025A)
FINANCIAL OUTLOOK (3Q 2026E VS . 3Q 2025A) Outlook provided as of October 20, 2025 Outlook Comments Slightly to Loan Balances ▪ Commercial loans are expected to lead growth with modest growth in commercial Moderately (period-end) real estate and consumer loans Increasing Moderately ▪ Net interest in
Slide 17: Zions Bancorporation Drives Value for Its Stakeholders
ZIONS BANCORPORATION DRIVES VALUE FOR ITS STAKEHOLDERS We are determined to help build strong, successful communities, create economic opportunity, and help our clients achieve greater financial strength through the relationships we develop and the services we provide Distinctive Local Operating Mod
Slide 18: Appendix
APPENDIX • Financial Results Summary • Accumulated Other Comprehensive Income (AOCI) • Balance Sheet Profitability • Loan Growth by Bank Brand and Loan Type • Allowance and Credit Metrics • Earning Asset Repricing • Interest Rate Swaps • Interest Rate Sensitivity • Credit Quality Trends • Loan Loss
Slide 19: Financial Results Summary
FINANCIAL RESULTS SUMMARY Quarterly financial highlights Three Months Ended (Dollar amounts in millions, except per share data) September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Earnings Results: Diluted Earnings Per Share $ 1.48 $ 1.63 $ 1.13 $ 1.34 $ 1.37 Net Ear
Slide 20: Accumulated Other Comprehensive Income/Loss (AOCI)
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS (AOCI) Steady AOCI improvement with meaningful protection against term rate volatility due to hedging strategy AOCI Projection $780 million, or 33%, projected improvement from 4Q24 to 4Q26 Actual Projection • AOCI is projected to improve by Based on forwar
Slide 21: Balance Sheet Profitability
BALANCE SHEET PROFITABILITY Profitability during the quarter declined due to a provision for credit losses attributed to two related commercial loans Return on Assets Return on Tangible Common Equity 1 18.7% 17.4% 16.0% 16.0% 13.4% 1.09% 0.95% 0.96% 0.99% 0.77% 3Q24 4Q24 1Q25 2Q25 3Q25 3Q24 4Q24 1Q2
Slide 22: Loan Growth – By Bank Affiliate and Loan Type
LOAN GROWTH – BY BANK AFFILIATE AND LOAN TYPE Linked quarter declines in commercial loans and CRE term (multifamily) due in part to resolutions with borrowers resulting in paydowns Period-End Linked Quarter Loan Growth (3Q25 vs. 2Q25) (in millions) Zions Bank CB&T Amegy NBAZ NSB Vectra CBW ZB Total
Slide 23: Allowance and Credit Metrics
ALLOWANCE AND CREDIT METRICS CECL methodology reflects reserve build ahead of realized deterioration of credit metrics Through 2022 and 2023, the ACL increased, despite improving problem loan levels, due to forecasts of future credit quality deterioration. The reserve ratio in 2024 remained stable,
Slide 24: Simulated Repricing Expectations: Earning Assets & Loans
SIMULATED REPRICING EXPECTATIONS: EARNING ASSETS & LOANS A substantial portion of earning assets reset within one year with additional resets in later periods Earning Assets: Rate Reset / Maturity Profile1 Loans: Rate Reset / Maturity Profile1 Earning Assets 55% 55% Loans 50% After Hedging After Hed
Slide 25: Interest Rate Swaps at September 30, 2025
INTEREST RATE SWAPS AT SEPTEMBER 30, 2025 Swaps are used to balance our interest rate sensitivity to income and value Interest rate sensitivity is managed in part with portfolio interest rate hedges1 • In the third quarter, we added $500 million of receive-fixed debt hedges with a fixed rate of 4.70
Slide 26: Net Interest Income – Rate Sensitivity
NET INTEREST INCOME – RATE SENSITIVITY The rate path implied by the forward curve reflects modest asset sensitivity; net interest income increases under conservative assumptions Interest Rate Impacts on Net Interest Income1 Net Interest Income Sensitivity Hypothetical simulations both assume $1.5 bi
Slide 27: Interest Rate Sensitivity – Parallel Rate Shocks
INTEREST RATE SENSITIVITY – PARALLEL RATE SHOCKS Standard parallel rate shocks suggest asset sensitivity Simulated Net Interest Income Sensitivity 1 −200 bps −100 bps +100 bps +200 bps 10% 8% as of 6/30/2025 as of 9/30/2025 5% 4% (4%) (5%) (9%) (10%) 27 (1) 12-month forward simulated impact of an in
Slide 28: Credit Quality Trends Relative to Peers
CREDIT QUALITY TRENDS RELATIVE TO PEERS Zions’ NCO/Loans ratio is frequently in the best (lowest) quartile of peers; low loss rates on NPAs NPA Ratio NCOs / Loans NPAs + 90 DPD, as a percentage of Loans + OREO (Trailing 12-month Average) 1.30% 1.30% 1.10% 1.10% 0.90% 0.90% 0.70% 0.70% 0.50% 0.50% 0.
Slide 29: Loan Loss Severity
LOAN LOSS SEVERITY When problems arise, Zions generally experiences less severe loan losses due to strong collateral and underwriting practices Annualized NCOs / Nonaccrual Loans Annualized NCOs / Nonaccrual Loans Five Year Average (2020Q3 – 2025Q2) Fifteen Year Average (2010Q3 – 2025Q2) >100% >100%
Slide 30: Commercial Real Estate Problem Loans in Focus
COMMERCIAL REAL ESTATE PROBLEM LOANS IN FOCUS The commercial real estate portfolio benefits from strong LTVs, guarantor support, low delinquencies, and diversification Change in CRE Problem Loans Levels • CRE classifieds decreased $143 million during the quarter ($ Millions) 6/30/25 to 9/30/2025 • R
Slide 31: In-Depth Review: Commercial Real Estate
IN-DEPTH REVIEW: COMMERCIAL REAL ESTATE Limited tail loan-to-value risk in portfolio; controlled CRE growth and improving credit metrics Balance Trends Maturities Construction Balances Term Balances Construction Balances Term Balances Term % of CRE % of CRE WAVG LTV Term Construction Multifamily 54%
Slide 32: Disciplined Commercial Real Estate Growth
DISCIPLINED COMMERCIAL REAL ESTATE GROWTH Commercial real estate loan growth lags peers due to continued exercise of concentration risk discipline Commercial Real Estate Zions has exercised caution in CRE Excluding Owner Occupied concentrations for more than a decade 350 and in underwriting standard
Slide 33: In-Depth Review: CRE Office ($1.7 Billion Balance)
IN-DEPTH REVIEW: CRE OFFICE ($1.7 BILLION BALANCE) CRE Office portfolio is 13% of total CRE exposure and 3% of total loans; charge-offs remain limited Balance Trends Maturities • Allowance for credit losses: 3.2% of balances / 24% of criticized balances Construction Balances Term Balances Constructi
Slide 34: In-Depth Review: CRE Multifamily ($3.9 Billion Balance)
IN-DEPTH REVIEW: CRE MULTIFAMILY ($3.9 BILLION BALANCE) CRE Multifamily portfolio is 29% of total CRE exposure and 6% of total loan exposure • Allowance for credit losses: 2.1% of total multifamily balances / 12% of Balance Trends Maturities criticized balances Construction Balances Term Balances Co
Slide 35: In-Depth Review: CRE Industrial ($3.0 Billion Balance)
IN-DEPTH REVIEW: CRE INDUSTRIAL ($3.0 BILLION BALANCE) CRE Industrial portfolio is 23% of total CRE exposure and 5% of total loan exposure Balance Trends Maturities • Allowance for credit losses: 1.4% of balances / 10% of criticized balances Construction Balances Term Balances Construction Balances
Slide 36: Loans to Non-Depository Financial Institutions (NDFI) ($2.0B Balance)
LOANS TO NON-DEPOSITORY FINANCIAL INSTITUTIONS (NDFI) ($2.0B BALANCE) Loans to NDFIs make up 7% of the commercial portfolio and are 3% of total loans; portfolio growth has been limited Portfolio characteristics: • Diversified across many lending segments and asset classes NDFI Growth • Loans tend to
Slide 37: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In millions 3Q25 2Q25 1Q25 4Q24 3Q24 (a) Total noninterest expense $527 $527 $538 $509 $502 LESS adjustments: Severance costs 6 2 3 1 1 Amortization of core deposit and other intangibles 2 2 2 2 2 FDIC special assessment (2) - - (3) - SBIC investment success fee accrual 1
Slide 38: Non-GAAP Financial Measures (Continued)
NON-GAAP FINANCIAL MEASURES (CONTINUED) In millions 3Q25 2Q25 1Q25 4Q24 3Q24 Return on Average Tangible Common Equity (Non-GAAP) Net earnings applicable to common $221 $243 $169 $200 $204 Adjustments, net of tax: Amortization of core deposit and other intangibles 2 2 1 1 1 (a) Net earnings applicabl
Slide 39: Zions Bancorporation
ZIONS BANCORPORATION zionsbancor poration.com
Zions Bancorporation, N.A. — Q3 2025 Earnings Presentation on 6ix