Zions Bancorporation Reports 11.1% Increase in Earnings Per Share for Q1 2025

Zions Bancorporation, National Association reported a solid financial performance for the first quarter of 2025, with net earnings applicable to common shareholders reaching $170 million, or $1.13 per diluted share, compared to $153 million, or $0.96 per diluted share, in the same period last year. This represents a 11.1% increase in earnings per share, driven by a $38 million increase in net interest income, which rose to $624 million, a 6% increase year-over-year. The net interest margin improved to 3.10%, up from 2.94% in the prior year, reflecting lower funding costs and a favorable mix of interest-earning assets.

The bank's total loans and leases increased by $531 million, or 1%, to $59.9 billion, with notable growth in the consumer 1-4 family residential mortgage and commercial real estate portfolios. Total deposits decreased by $531 million, or 1%, to $75.7 billion, primarily due to a decline in interest-bearing deposits. However, the bank's customer deposits, excluding brokered deposits, totaled $70.9 billion, up from $69.9 billion a year earlier. The acquisition of four FirstBank branches in California contributed approximately $630 million in deposits and $420 million in loans to the bank's balance sheet.

Zions Bancorporation's provision for credit losses increased to $18 million from $13 million in the prior year, reflecting a cautious approach amid economic uncertainties. Nonperforming assets totaled $307 million, or 0.51% of total loans and leases, slightly up from $298 million, or 0.50%, at the end of 2024. The allowance for credit losses stood at $743 million, representing 1.24% of total loans and leases, down from 1.27% a year earlier, indicating a stable credit quality despite the increase in nonperforming assets.

Strategically, the bank has focused on enhancing its technology infrastructure, investing $123 million in technology initiatives during the quarter, a 5% increase from the previous year. This investment aims to improve operational efficiency and customer service. The bank's efficiency ratio improved to 66.6%, down from 67.9% in the prior year, as revenue growth outpaced expense increases. Looking ahead, Zions Bancorporation anticipates continued growth in net interest income and a stable credit environment, although it remains vigilant regarding potential economic challenges and regulatory changes that could impact its operations.