Zions Bancorporation Reports $3.1 Billion Net Revenue and 14% Increase in Net Income for Fiscal Year 2024

Zions Bancorporation, National Association reported a net revenue of $3.1 billion for the fiscal year ending December 31, 2024, reflecting a slight increase from $3.1 billion in 2023. The bank's net income applicable to common shareholders rose by 14% to $737 million, translating to a diluted earnings per share (EPS) of $4.95, up from $4.35 in the previous year. This growth was attributed to a lower provision for credit losses, which decreased to $72 million from $132 million in 2023, alongside a 3% increase in noninterest income, primarily driven by capital markets and commercial account fees.

In terms of operational metrics, Zions Bancorporation's total assets increased by 2% to approximately $88.8 billion, while total loans and leases rose by 3% to $59.4 billion. The bank's total deposits also saw a 2% increase, reaching $76.2 billion. The efficiency ratio, which measures operating expenses as a percentage of revenue, worsened slightly to 64.2% from 62.9% in 2023, primarily due to an increase in adjusted noninterest expenses. The bank's employee headcount decreased by 3% to 9,406 full-time equivalent employees.

Strategically, Zions Bancorporation announced plans to acquire four branches from FirstBank in Coachella Valley, California, which will add approximately $700 million in deposits and $400 million in loans to its portfolio. This acquisition is expected to close in the first quarter of 2025. The bank continues to focus on enhancing its technology infrastructure, having completed a significant upgrade to its core banking systems in July 2024, which is anticipated to improve operational efficiency and customer service.

The bank's credit quality indicators showed some deterioration, with nonperforming assets increasing to $298 million, or 0.50% of total loans and leases, compared to $228 million, or 0.39%, in 2023. The allowance for credit losses stood at $741 million, representing 1.25% of total loans and leases. The bank's capital ratios remained strong, with a common equity tier 1 (CET1) capital ratio of 10.9%, exceeding the minimum regulatory requirements.

Looking ahead, Zions Bancorporation expressed cautious optimism, noting that while economic conditions remain uncertain, it is well-capitalized and positioned to navigate potential challenges. The bank's management emphasized its commitment to maintaining strong credit quality and operational efficiency while pursuing growth opportunities in its core markets.