Zions Bancorporation Reports 21% Increase in Earnings for Q2 2025

Zions Bancorporation, National Association reported a solid financial performance for the second quarter of 2025, with net earnings applicable to common shareholders reaching $244 million, or $1.63 per diluted share, compared to $201 million, or $1.28 per share, in the same quarter of 2024. This represents a 21% increase in diluted earnings per share, driven by a $51 million increase in net interest income, which rose to $648 million, primarily due to lower funding costs and an increase in average interest-earning assets. The net interest margin improved to 3.17%, up from 2.98% in the prior year, reflecting a favorable shift in the composition of interest-earning assets.

In terms of operational metrics, total loans and leases increased by $2.4 billion, or 4%, to $60.8 billion, with notable growth in the consumer 1-4 family residential mortgage and commercial and industrial loan portfolios. Customer deposits, excluding brokered deposits, totaled $69.9 billion, a slight increase from $69.5 billion, despite a decline in interest-bearing deposits. The provision for credit losses was negative $1 million, indicating a favorable credit environment compared to a positive provision of $5 million in the prior year period.

Strategically, Zions Bancorporation completed the acquisition of four FirstBank branches in Coachella Valley, California, in March 2025, which contributed approximately $390 million in loans and $585 million in deposits to the balance sheet. The bank's noninterest income also saw a 6% increase, totaling $190 million, driven by higher capital markets fees and improved retail and business banking fees. However, noninterest expenses rose by 4% to $527 million, primarily due to increased salaries and employee benefits linked to improved profitability.

Looking ahead, Zions Bancorporation remains cautiously optimistic about its growth trajectory, emphasizing its focus on managing credit risk and maintaining a strong capital position. The bank's total shareholders' equity increased by 8% to $6.6 billion, supported by retained earnings and a reduction in unrealized losses in accumulated other comprehensive income. The bank's capital ratios remain robust, with a common equity tier 1 capital ratio of 11.0%, exceeding regulatory requirements. Management anticipates continued growth in loans and deposits, while closely monitoring economic conditions and credit quality indicators.