Zions Bancorporation National Association : 2025 First Quarter Investor Update

Published: 2025-02-25 17:43:06 ET ZION

2025 FIRSTZIONSQUARTER

Investor Update

F e b r u ary 2 4 , 2 0 2 5

ZIONS IS A COLLECTION OF COMMUNITY BANKS

Key Differentiators: Local decision-making and top-notch service, commercial banking focus, superior credit performance

Zions' Markets

Bank

Headquarters

Ending

% of

Ending

% of

Deposits

Total

Loans

Total

Zions Bank

Salt Lake City

$21.3B

28%

$14.9B

25%

Amegy

Houston

$15.3B

20%

$13.9B

23%

CB&T

San Diego

$14.5B

19%

$14.6B

25%

NSB

Las Vegas

$7.1B

$3.7B

NB│AZ

Phoenix

$6.9B

$5.6B

10%

Vectra

Denver

$3.6B

$3.7B

Commerce

Seattle

$1.2B

$2.0B

Brokered / Other

$6.3B

$0.9B

Zions Bancorporation Salt Lake City

$75.7B

100%

$58.9B

100%

Financial Highlights

Key Metrics

4Q24

Listing

NASDAQ: ZION

Market Capitalization (as of 2/14/25)

$8.3B

Total Assets

$88.8B

Total Loans

$59.4B

Total Deposits

$76.2B

Common Equity Tier 1 Capital

$7.4B

Common Equity Tier 1 Capital Ratio

10.9%

Zions Bancorp. Rating (S&P/Fitch/Kroll)2

BBB+ / BBB+ / A-

Rating Outlook (S&P/Fitch/Kroll)2

Negative / Stable/ Stable

3 Source: S&P Global and internal data, as of 4Q24 unless noted.

1 December 31, 2024, ending balances.

2 Represents long-term debt / senior debt issuer rating, as of February 14, 2025

FINANCIAL PERFORMANCE

Net interest margin expanded for a fourth consecutive quarter; credit losses increased in the quarter though remained at 10 bps for the year

Key Metrics

4Q24

FY24

• Net earnings to common declined by $4 million

versus prior quarter due to a larger credit loss

provision, slightly higher noninterest expense, and

one-time costs associated with the redemption of

preferred stock

• Adjusted pre-provision net revenue increased 19%

relative to the prior-year quarter

• The net interest margin increased to 3.05% primarily

because interest-bearing liabilities repriced

downward faster than earning asset yields

• Net charge-offs were 0.24% of loans, annualized,

and 0.10% for the full year

• Improved efficiency ratio reflects higher adjusted

Net earnings to common

Diluted earnings per share (GAAP)

Adjusted pre-provision net revenue2

Net interest margin

Loan growth (linked period)

Customer deposit growth1 (linked period)

Net charge-offs / loans

$200 million

$737 million

$1.34$4.95

$312 million

$1,131 million

3.05%

3.00%

Ending

Average

Ending

Average

0.9%

1.1%

2.8%

3.2%

Ending

Average

Ending

Average

0.9%

1.4%

0.9%

3.8%

(annualized)

0.24%0.10%

revenue

Return on average tangible common

16.0%

16.2%

equity2

Efficiency ratio2

62.0%

64.2%

4 (1) Excludes brokered deposits.

AVERAGE LOANS AND DEPOSITS

Yield on loans decreased 23 basis points; total cost of deposits decreased 21 basis points

Average Total Loans

Average Total Deposits

Yield on Total Loans

Cost of Total Deposits

Total interest-bearing deposits reflect a 58% cumulative beta

($ billions)

$75.9

$58.7

$59.3

$26.9

$57.1

$57.9

$58.3

5.94%

6.06%

6.11%

6.15%

5.92%

$49.1

2.06%

4Q23

1Q24

2Q24

3Q24

4Q24

4Q23

$73.4 $74.2 $75.0

$25.5 $25.2 $24.7

$47.8

$49.1

$50.3

2.06%

2.11%

2.14%

1Q24 2Q24 3Q24

Average Noninterest-bearing Deposits

Average Interest-bearing Deposits

$76.4

$24.9

$51.5

1.93%

4Q24

5 Beta calculated using interest-bearing deposit spot rates at August 31 and December 31, which were 3.20% and 2.62%, respectively. Total deposit spot rate at December 31 was 1.78%.

DEPOSIT BALANCE AND BORROWING TRENDS

Ending and average customer deposits increased 0.9% and 1.4%, respectively, compared to prior quarter

4Q24 total funding costs decreased 24 basis points vs. 3Q24

100

($ billions)

Ending Deposits and Borrowings

100

($ billions)

Average Deposits and Borrowings

$71

$70

$69

$71

$70

$69

$70

2.34%

2.36%

2.25%

2.12%

4Q23

1Q24

2Q24

3Q24

4Q24

4Q23

1Q24

2Q24

3Q24

4Q24

4.50%

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

6 Note: Deposit figures shown in graphs may not foot due to rounding

TOTAL INVESTMENT SECURITIES & MONEY MARKET INVESTMENTS

The bank has strong on-balance sheet liquidity

($ billions)

% of earning assets

Total Investment Securities and Money Market Investments

(period-end balances)

$2.4

$2.6

$3.2

$2.2

$4.3

$20.7

$20.1

$19.5

$19.4

$18.8

4Q23

1Q24

2Q24

3Q24

4Q24

29%

28%

27%

28%

Total Investment Securities Money Market Investments

The investment securities portfolio is designed to be a storehouse of balance sheet liquidity

The investment securities portfolio is also used to balance interest rate risk

LOAN GROWTH IN DETAIL

Loan growth in 1-4 family mortgage and energy (oil & gas)

Linked Quarter Loan Balance Growth

Total Loans: +0.9%

10%

Energy (Oil & Gas), 7%

Compared to the prior quarter:

Growth Rate: Linked Quarter 1

-2%

-4%

-6%

-8%

1-4 Family, 5%

Home Equity, 3%

Owner occupied, (1%)

Municipal, 2%

CRE Term, 0%

CRE C&D, (2%)

C&I (ex-Oil & Gas), 0%

Note: circle size indicates relative proportion of loan portfolio as of 4Q24.

Note: 'Other' category not shown (-12%)

-10%

-$400 -$300 -$200 -$100

$100

$200

$300

$400

$500

$600

($ millions)

Balance Change: Linked Quarter

8 (1) Growth rate quarter over quarter, not annualized

LOAN GROWTH - BY BANK BRAND AND LOAN TYPE

Loan growth in 1-4 family mortgage, C&I, and energy (oil & gas); strong performance in California, Texas, and Nevada

Period-End Year-over-Year Loan Growth (4Q24 vs. 4Q23)

Commercial

(in millions)

C&I (ex-Oil & Gas)

Zions Bank

Amegy

CB&T

NBAZ

NSB

Vectra

CBW

Other

Total

(179)

380

(133)

(58)

158

(71)

(22)

129

NSB, 5% CBW, 4%Other, 1% Vectra, 5%

SBA PPP Owner occupied

(13)

(8)

(15)

(4)

(2)

(4)

(1)

(47)

(2)

(72)

(10)

114

NBAZ, 8%

Zions Bank, 28%

Energy (Oil & Gas)

Municipal

CRE C&D

CRE Term

1-4 Family

Home Equity

Other

Total net loans

(20)

137

119

(2)

(5)

(51)

(20)

(3)

(72)

(54)

104

292

(159)

(92)

(116)

(78)

125

538

463

190

139

1,525

(3)

285

(301)

(150)

(15)

(91)

(23)

(82)

(661)

147

875

401

251

(135)

107

(31)

1,630

CB&T, 24%

Amegy, 25%

Commercial Real Estate

Vectra, 6%

CBW, 5%

NSB, 6%

CB&T, 31%

Period-End Linked Quarter Loan Growth (4Q24 vs. 3Q24)

NBAZ, 13%

(in millions)

C&I (ex-Oil & Gas)

SBA PPP Owner occupied Energy (Oil & Gas) Municipal

CRE C&D

CRE Term

1-4 Family

Home Equity Other

Total net loans

Zions Bank

Amegy

CB&T

NBAZ

NSB

Vectra

CBW

Other

Total

(117)

158

(90)

(30)

(3)

(2)

(5)

(1)

(12)

(75)

(10)

(89)

(2)

(48)

(21)

175

(1)

(7)

146

(12)

(28)

(1)

(75)

(69)

(29)

(59)

(19)

239

(14)

(35)

(134)

(1)

146

168

450

(1)

(106)

(48)

(2)

(24)

(22)

(196)

461

119

(10)

101

(230)

(29)

526

Amegy, 18%

Zions Bank, 21%

Consumer

CBW, 0.4%

Other, 2%

NSB, 9%

Vectra, 9%

Zions Bank, 26%

NBAZ, 9%

CB&T, 20%

Amegy, 24%

"Other" loans includes consumer construction, bankcard, and other consumer loan categories. Totals shown above may not foot due to rounding.

NET INTEREST INCOME & NET INTEREST MARGIN

Net interest income increased primarily because interest-bearing liabilities repriced downward faster than earning asset yields

Net Interest Income

Net Interest Margin

($ millions)

3.20%

$583

$586

$597

$620

$627

3.10%

Linked quarter (4Q24 vs. 3Q24)

Net interest income increased $7 million:

3.03% 3.05%

• Interest expense decreased $49 million

2.98%

3.00%

•

$32 million, or 8%, decrease on deposits

•

$17 million, or 21%, decrease on borrowings

2.91%

2.94%

2.90%

2.80%

2.70%

4Q23

1Q24

2Q24

3Q24

4Q24

Year-over-year (4Q24 vs. 4Q23)

Net interest income increased $44 million:

Disclaimer

Zions Bancorporation NA published this content on February 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 25, 2025 at 22:42:49.011.