Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Q2 2025 Earnings Presentation
37 slides from Zions Bancorporation N.a's earnings presentation, Jul 21, 2025
Slide 1: Second Quarter 2025 Financial Review
ZIONS SECOND QUARTER 2025 Financial Review July 21, 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 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 assu
Slide 3: Financial Performance
FINANCIAL PERFORMANCE Second quarter results reflect improved earnings, loan growth, and continued low levels of net charge-offs Change From: • Net earnings to common of $243 million Key Metrics 2Q25 1Q25 2Q24 reflects a $74 million improvement versus (in millions, except ratios and per share data)
Slide 4: Diluted Earnings Per Share
DILUTED EARNINGS PER SHARE Earnings per share increased $0.50 versus prior quarter; compared to the year-ago period, earnings improved by $0.35 per share Diluted Earnings per Share Notable Items1: $1.63 2Q25: $1.28 $1.37 $1.34 $1.13 • $0.05 per share positive impact from IPO of SBIC investment (FatP
Slide 5: Pre-Provision Net Revenue (PPNR)
PRE-PROVISION NET REVENUE (“PPNR”) Adjusted PPNR increased 18% over the prior quarter and 14% over the prior-year period driven by improved revenue PPNR1 Linked quarter (2Q25 vs. 1Q25) ($ millions) • Adjusted PPNR increased 18%: • Net interest income (FTE) up 4% $324 $323 $316 $312 • $302 $299 Custo
Slide 6: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN Net interest margin improved 7 basis points sequentially and net interest income increased for both the linked quarter and year over year Net Interest Income Linked quarter (2Q25 vs. 1Q25) Net Interest Margin Net interest income increased 4%: • Interest inco
Slide 7: Net Interest Margin
NET INTEREST MARGIN Repricing of interest-bearing deposits contributed to the expansion of the net interest margin over prior year and prior quarter Linked Quarter (2Q25 vs. 1Q25) Year-Over-Year (2Q25 vs. 2Q24) 0.62% 0.13% 0.01% 3.17% 3.17% 3.10% 0.04% (0.02%) (0.09%) 2.98% (0.21%) (0.02%) (0.12%) (
Slide 8: Noninterest Income and Revenue
NONINTEREST INCOME AND REVENUE Customer-related noninterest income increased 7% versus prior year period driven largely by higher capital markets fees and income Customer-Related Noninterest Income 1,3 Total Revenue 2,3 ($ millions) $176 ($ millions) $838 $837 $821 $820 $800 $798 $795 $164 $792 $784
Slide 9: Noninterest Expense
NONINTEREST EXPENSE Noninterest expenses remain well-controlled with decreases in the quarter related primarily to seasonal compensation in the prior quarter Linked quarter (2Q25 vs. 1Q25) Noninterest Expense (NIE) • Adjusted noninterest expense decreased $12 million, or ($ millions) 2% • Decrease i
Slide 10: Average Loans and Deposits
AVERAGE LOANS AND DEPOSITS Yields on loans increased 2 basis points; total cost of deposits decreased 8 basis points Average Total Loans Average Total Deposits Yield on Total Loans Total Cost of Deposits Total interest-bearing deposits reflect a 70% cumulative beta1 ($ billions) ($ billions) $74.2 $
Slide 11: Deposit Balance and Borrowing Trends
DEPOSIT BALANCE AND BORROWING TRENDS Ending and average customer deposits decreased 1.5% and 0.4%, respectively, compared to prior quarter Q2 2025 total funding costs decreased 4 basis points compared to prior quarter • Customer deposits declined $1.1 billion (1.5%) linked quarter, driven by seasona
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 Criticized and classified loan balances improved while nonperforming asset and net charge-off ratios remained low Key Credit Metrics Credit Quality Ratios • Net charge-offs relative to average loans: Criticized / Loans NPAs / Loans + OREO Classified / Loans • 0.07% annualized in 2Q25
Slide 14: Commercial Real Estate Summary ($13.6 Billion Balance)
COMMERCIAL REAL ESTATE SUMMARY ($13.6 BILLION BALANCE) The commercial real estate portfolio is granular and well diversified, 22% of total loans CRE Portfolio Composition Term CRE ($11.2B) As of June 30, 2025 • Weighted average LTVs of < 60% Other, 14% • Maturity distribution over the next three yea
Slide 15: 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 • CRE classifieds decreased $196 million during the quarter Change in CRE Problem Loans Levels 3/31/25 to 6/30/2025 • Reduction in c
Slide 16: 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 17: Financial Outlook (2Q 2026E vs. 2Q 2025A)
FINANCIAL OUTLOOK (2Q 2026E VS . 2Q 2025A) Outlook provided as of July 21, 2025 Outlook Comments Loan Balances Slightly ▪ Commercial loans are expected to lead growth (period-end) Increasing Net Interest Income Moderately ▪ Net interest income improvement expected to be driven by earning asset remix
Slide 18: 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 19: 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 • Loan Loss Severity (NCOs as a perc
Slide 20: Financial Results Summary
FINANCIAL RESULTS SUMMARY Quarterly financial highlights Three Months Ended (Dollar amounts in millions, except per share data) June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Earnings Results: Diluted Earnings Per Share $ 1.63 $ 1.13 $ 1.34 $ 1.37 $ 1.28 Net Earnings
Slide 21: 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 $728 million, or 31%, improvement from 4Q24 to 4Q26 • AOCI is projected to improve by Actual Projection over $400 million, or 17%
Slide 22: Balance Sheet Profitability
BALANCE SHEET PROFITABILITY Improved profitability during the quarter on strong revenue growth Return on Assets Return on Tangible Common Equity 1 18.7% 17.5% 17.4% 16.0% 13.4% 1.09% 0.95% 0.96% 0.91% 0.77% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 22 (1) Return on Tangible Common Equity is
Slide 23: Loan Growth – By Bank Affiliate and Loan Type
LOAN GROWTH – BY BANK AFFILIATE AND LOAN TYPE Strong linked quarter growth in C&I lending, particularly at Zions Bank, Amegy Bank, and California Bank & Trust Period-End Linked Quarter Loan Growth (2Q25 vs. 1Q25) (in millions) Zions Bank CB&T Amegy NBAZ NSB Vectra CBW Other Total Commercial C&I (ex-
Slide 24: 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 a
Slide 25: 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% 56% Loans 49% After Hedging After Hed
Slide 26: Interest Rate Swaps at June 30, 2025
INTEREST RATE SWAPS AT JUNE 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 first quarter, we added $200 million of spot fair value hedges with a fixed rate of 3.71% and $1
Slide 27: 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 $1.4 bi
Slide 28: 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 as of 3/31/2025 8% 8% as of 6/30/2025 5% 4% (4%) (4%) (8%) (9%) 28 (1) 12-month forward simulated impact of an inst
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 (2020Q2 – 2025Q1) Fifteen Year Average (2010Q2 – 2025Q1) >100% >100%
Slide 30: 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 16.0 14.0 Multi
Slide 31: 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 32: In-Depth Review: CRE Office ($1.8 Billion Balance)
IN-DEPTH REVIEW: CRE OFFICE ($1.8 BILLION BALANCE) CRE Office portfolio makes up 13% of total CRE exposure and 3% of total loans; charge-offs remain limited • Allowance for credit losses: 3.3% of balances / 22% of criticized balances Balance Trends Maturities Construction Balances Term Balances Cons
Slide 33: In-Depth Review: CRE Multifamily ($4.1 Billion Balance)
IN-DEPTH REVIEW: CRE MULTIFAMILY ($4.1 BILLION BALANCE) CRE multifamily portfolio is 30% of total CRE exposure; 7% of total loan exposure • Allowance for credit losses: 1.9% of total multifamily balances / 12% of Balance Trends Maturities Construction Balances Term Balances Construction Balances Ter
Slide 34: In-Depth Review: CRE Industrial ($3.0 Billion Balance)
IN-DEPTH REVIEW: CRE INDUSTRIAL ($3.0 BILLION BALANCE) CRE Industrial portfolio is 22% of total CRE exposure; 5% of total loan exposure • Allowance for credit losses: 1.6% of balances / 10% of criticized balances Balance Trends Maturities Construction Balances Term Balances Construction Balances Ter
Slide 35: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In millions, except per share amounts 2Q25 1Q25 4Q24 3Q24 2Q24 (a) Total noninterest expense $527 $538 $509 $502 $509 LESS adjustments: Severance costs 2 3 1 1 1 Other real estate expense (1) Amortization of core deposit and other intangibles 2 2 2 2 1 FDIC special assess
Slide 36: Non-GAAP Financial Measures (Continued)
NON-GAAP FINANCIAL MEASURES (CONTINUED) In millions 2Q25 1Q25 4Q24 3Q24 2Q24 Return on Average Tangible Common Equity (Non-GAAP) Net earnings applicable to common $243 $169 $200 $204 $190 Adjustments, net of tax: Amortization of core deposit and other intangibles 2 1 1 1 1 (a) Net earnings applicabl
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ZIONS BANCORPORATION zionsbancor poration.com
Zions Bancorporation, N.A. — Q2 2025 Earnings Presentation on 6ix