Zions Bancorporation NA

11/06/2025 | Press release | Distributed by Public on 11/06/2025 12:48

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING INFORMATION
This quarterly report contains "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and assumptions regarding future events and outcomes. However, they are inherently subject to known and unknown risks, uncertainties, and other factors that could cause actual results, achievements, industry developments, or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements may include, among others:
•Statements concerning the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, operating results, and performance of Zions Bancorporation, National Association, and its subsidiaries (collectively "Zions Bancorporation, N.A.," "the Bank," "we," "our," "us"); and
•Statements preceded or followed by, or that include, terminology such as "may," "might," "can," "continue," "could," "should," "would," "believe," "anticipate," "estimate," "forecasts," "expect," "intend," "target," "commit," "design," "plan," "projects," "will," or similar words and expressions, including their negative forms.
Forward-looking statements are not guarantees and should not be relied upon as representing management's views as of any subsequent date. Actual results and outcomes may differ materially from those presented. Although the following list is not comprehensive, key factors that may cause material differences include:
•The quality and composition of our loan and investment securities portfolios and the quality and composition of our deposits;
•Changes in general industry, political, and economic conditions, including increases in the national debt, elevated inflation, economic slowdowns or recessions, and other macroeconomic challenges; changes in interest and reference rates, which could negatively impact our revenues and expenses, the valuation and performance of our assets and liabilities, and the availability and cost of funding and liquidity;
•Political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope, and effectiveness of the government and its agencies and services;
•The effects of newly enacted and proposed regulations affecting us and the banking industry, as well as changes and uncertainties in the interpretation, enforcement, and applicability of laws and fiscal, monetary, regulatory, trade, and tax policies;
•Actions taken by governments, agencies, central banks, and similar organizations, including those that result in decreases in revenue, increases in regulatory bank fees, insurance assessments, and capital standards; and other regulatory requirements;
•Evolving trade policies and disputes, such as proposed and implemented tariffs and resulting market volatility and uncertainty, including the effects on supply chains, expenses, and revenues for both us and our customers;
•Judicial, regulatory and administrative inquiries, investigations, examinations or proceedings and the outcomes thereof that create uncertainty for, or are adverse to, us or the banking industry;
•Changes in our credit ratings;
•Our ability to innovate and otherwise address competitive pressures and other factors that may affect aspects of our business, such as pricing, relevance of, and demand for, our products and services, and our ability to recruit and retain talent;
•The potential for both positive and disruptive impacts of emerging technologies, including stablecoins and other digital currencies, blockchain, artificial intelligence, quantum computing, and related innovations affecting both us and the banking industry;
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
•Our ability to complete projects and initiatives and execute our strategic plans, manage our risks, control compensation and other expenses, and achieve our business objectives;
•Our ability to develop and maintain technology and information security systems, along with effective controls designed to guard against fraud, cybersecurity, and privacy risks and related incidents, particularly given the accelerating pace at which threat actors are developing and deploying increasingly sophisticated and targeted tactics against the financial services industry;
•Our ability to provide adequate oversight of our suppliers to help us prevent or mitigate effects upon us and our customers of inadequate performance, systems failures, or cyber and other incidents by, or affecting, third parties upon whom we rely for the delivery of various products and services;
•The effects of wars, geopolitical conflicts, and other local, national, or international disasters, crises, or conflicts that may occur in the future;
•Natural disasters, pandemics, wildfires, catastrophic events, and other emergencies and incidents, and their impact on our and our customers' operations, business, and communities, including the increasing difficulty in, and the expense of, obtaining property, auto, business, and other insurance products;
•Governmental and social responses to environmental, social, and governance issues, including those with respect to climate change and diversity;
•Securities and capital markets behavior, including volatility and changes in market liquidity and our ability to raise capital;
•The possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and shareholders' equity;
•The impact of bank closures or adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; and
•Adverse news and other expressions of negative public opinion whether directed at us, other banks, the banking industry, or otherwise that may adversely affect our reputation and that of the banking industry generally.
Factors that could cause our actual results, performance, achievements, industry trends, or regulatory outcomes to differ materially from those expressed or implied in the forward-looking statements are discussed in our 2024 Form 10-K and subsequent filings with the Securities and Exchange Commission ("SEC"). These documents are available on our website (www.zionsbancorporation.com) and from the SEC (www.sec.gov).
We caution against placing undue reliance on forward-looking statements, as they reflect our views only as of the date they are issued. Except as required by law, we specifically disclaim any obligation to update any factors or publicly announce revisions to forward-looking statements to reflect future events or developments.
RESULTS OF OPERATIONS
Comparisons noted below are calculated for the current quarter versus the same prior year period, unless otherwise specified. Reasons for changes in the current year-to-date period compared with the same prior year period are generally consistent with the quarter-to-date comparisons unless otherwise specified. Growth rates of 100% or more are considered not meaningful ("NM") as they typically reflect a low starting point.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Third Quarter 2025 Financial Performance
Net Earnings Applicable to Common Shareholders
(in millions) 		Diluted EPS
Adjusted PPNR
(in millions) 1
Efficiency Ratio 1
1 For information on non-GAAP financial measures, see page 41.
Executive Summary
Our financial performance in the third quarter of 2025, relative to the prior year period, reflected growth in net earnings applicable to common shareholders, diluted earnings per share ("EPS"), and adjusted pre-provision net revenue ("PPNR"). Diluted EPS increased to $1.48, compared with $1.37 in the third quarter of 2024, as higher net interest income and noninterest income were partially offset by a higher provision for credit losses and increased noninterest expense.
During the quarter, we recorded a $60 million provision for credit losses in connection with revolving lines of credit extended to two related commercial borrowers to finance the origination and purchase of commercial and residential mortgages. Of the total exposure, we charged off $50 million of the combined loan balances and established a full reserve for the remaining $10 million. These actions resulted from a review of the borrowers, guarantors, and associated collateral, which identified apparent irregularities and misrepresentations. As a result, legal action has been initiated to pursue recovery of the outstanding amounts owed from the guarantors of the credits.
•Net interest income increased $52 million, or 8%, compared with the prior year period, primarily due to lower funding costs and favorable shifts in the composition of average interest-earning assets. As a result, the net interest margin improved to 3.28%, compared with 3.03%.
◦Average interest-earning assets declined $111 million, primarily attributable to a reduction in average money market investments and average securities. These declines were partially offset by an increase in average loans and leases.
◦Average interest-bearing liabilities decreased $641 million, or 1%, mainly due to a reduction in average interest-bearing deposits, partially offset by an increase in average borrowed funds.
•The provision for credit losses was $49 million, compared with $13 million in the prior year period. The year-over-year increase was due to the previously disclosed credit losses involving two related commercial loans.
•Customer-related noninterest income increased $5 million, or 3%, primarily due to higher loan-related fees and income, largely resulting from increased mortgage loan sales activity. This growth was partially offset by an $11 million net credit valuation adjustment ("CVA") loss, recorded in capital markets fees and income. This loss was primarily driven by an update to our valuation methodology, in addition to changes in other market factors. Excluding the impact of the net CVA loss, customer-related noninterest income increased $13 million, or 8%, benefiting primarily from improved loan syndication activity and higher customer swap fees.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
•Noncustomer-related noninterest income increased $12 million, or 86%, mainly due to increased dividends and other income, which were primarily attributable to a gain on the sale of a bank-owned property and higher dividends received on Federal Home Loan Bank ("FHLB") stock.
•Noninterest expense increased $25 million, or 5%, primarily due to higher salaries and employee benefits expense, as well as an increase in technology, telecom, and information processing expense. These increases were partially offset by a decline in deposit insurance and regulatory expense.
•Total loans and leases increased $1.4 billion, or 2%, primarily driven by growth in the consumer 1-4 family residential mortgage and commercial and industrial loan portfolios.
◦Net loan and lease charge-offs totaled $56 million, or 0.37% of average loans and leases annualized, compared with $3 million, or 0.02%, in the prior year quarter. The increase in charge-offs was mainly driven by the previously disclosed $50 million loss associated with two related commercial loans.
◦Nonperforming assets totaled $324 million, or 0.54% of total loans and leases and other real estate owned, compared with $368 million, or 0.62%. The decrease was primarily in the commercial and industrial loan portfolio. Classified loans totaled $2.4 billion, or 4.00% of total loans and leases, compared with $2.1 billion, or 3.55%, in the prior year quarter, and decreased from $2.7 billion, or 4.43%, in the prior quarter.
•Total deposits decreased $840 million, or 1%. The reduction in interest-bearing deposits was primarily due to the migration of a consumer interest-bearing product into a new noninterest-bearing offering, along with a decrease in brokered deposits. This decline was partially offset by an increase in noninterest-bearing demand deposits, mainly driven by the aforementioned product migration. Customer deposits, excluding brokered deposits, totaled $71.1 billion, compared with $70.5 billion.
•Total borrowed funds increased $1.8 billion, or 51%, compared with the prior year quarter. This growth was driven by higher levels of long-term debt and short-term advances from the FHLB, partially offset by the full repayment of borrowings under the Federal Reserve Board ("FRB") Bank Term Funding Program ("BTFP").
Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN
Three Months Ended
September 30, 		Amount change Percent change Nine Months Ended
September 30, 		Amount change Percent change
(Dollar amounts in millions) 2025 2024 2025 2024
Interest and fees on loans 1
$ 898 $ 899 $ (1) - % $ 2,623 $ 2,641 $ (18) (1) %
Interest on money market investments 41 67 (26) (39) 144 170 (26) (15)
Interest on securities 125 138 (13) (9) 376 420 (44) (10)
Total interest income
1,064 1,104 (40) (4) 3,143 3,231 (88) (3)
Interest on deposits 313 403 (90) (22) 951 1,169 (218) (19)
Interest on short- and long-term borrowings 79 81 (2) (2) 248 259 (11) (4)
Total interest expense
392 484 (92) (19) 1,199 1,428 (229) (16)
Net interest income
$ 672 $ 620 $ 52 8 $ 1,944 $ 1,803 $ 141 8
Average interest-earning assets $ 82,783 $ 82,894 $ (111) - % $ 83,116 $ 82,204 $ 912 1 %
Average interest-bearing liabilities $ 55,987 $ 56,628 $ (641) (1) $ 56,866 $ 55,854 $ 1,012 2
bps bps
Net interest margin 2
3.28% 3.03% 25 3.18% 2.98% 20
1 Includes interest income recoveries of $2 million and $1 million for the three months ended, and $8 million and $5 million for the nine months ended September 30, 2025, and 2024, respectively.
2 Taxable-equivalent rates used where applicable.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Net interest income accounted for 78% of total net revenue (sum of net interest income plus noninterest income) in both the third quarters of 2025 and 2024. It increased $52 million, or 8%, for the three months ended September 30, 2025, relative to the same prior year period. This increase was primarily due to lower funding costs and a favorable shift in the composition of average interest-earning assets, reflecting growth in higher-yielding loans and a decline in lower-yielding money market investments and securities. As a result, the net interest margin improved to 3.28%, compared with 3.03%.
The following chart presents the changes in yields on average interest-earning assets:
The yield on average interest-earning assets, net of hedging activity, declined 19 basis points ("bps") in the third quarter of 2025, compared with the prior year period, reflecting a lower interest rate environment. The yield on average money market investments declined 100 bps, while the net yield on average loans decreased 24 bps, and the net yield on average securities declined 13 bps during the third quarter of 2025.
The following chart presents the changes in rates paid on average interest-bearing liabilities:
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
The total cost of deposits decreased 47 bps, and the rate paid on total deposits and interest-bearing liabilities decreased 44 bps during the third quarter of 2025, compared with the prior year period, reflecting the lower interest rate environment. The rates paid on interest-bearing deposits and total borrowed funds decreased 68 bps and 30 bps, respectively.
Average interest-earning assets decreased $111 million from the prior year quarter, as a decline in average money market investments and average securities was partially offset by an increase in average loans and leases.
Average loans and leases increased $2.1 billion, or 4%, to $60.8 billion, primarily due to growth in average consumer and commercial loans. Average securities decreased $1.2 billion, or 6%, to $18.2 billion, largely attributable to principal reductions, net of reinvestments. The paydown of lower-yielding securities continues to improve the overall yield of interest-earning assets and the net interest margin.
Average interest-bearing liabilities decreased $641 million, or 1%, from the prior year quarter. This decline was primarily driven by a reduction in average interest-bearing deposits, largely resulting from the migration of a consumer interest-bearing product into a new noninterest-bearing offering, along with a decrease in brokered deposits. The decrease was partially offset by an increase in average borrowed funds, reflecting an increase in long-term debt.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Average deposits decreased $726 million, or 1%, to $74.3 billion. Average interest-bearing deposits decreased $925 million, or 2%. Average noninterest-bearing deposits increased $199 million or 1%, and represented 34% of total deposits for the quarter, compared with 33% during the same prior year period. The change in average deposits was mainly due to the same drivers noted above.
Average borrowed funds, primarily composed of secured borrowings, increased $284 million, or 4%, to $6.6 billion. This growth was driven by increases in long-term debt, partially offset by the full repayment of borrowings under the FRB BTFP and a decrease in security repurchase agreements. The increase in long-term debt reflects the issuance of $500 million in 4.70% Fixed-to-Floating Senior Notes in August 2025, and $500 million in 6.82% Fixed-to-Floating Subordinated Notes in November 2024. These issuances were partially offset by the redemption of $88 million in 6.95% Fixed-to-Floating Subordinated Notes in December 2024.
For more information on our investment securities portfolio and borrowed funds and how we manage liquidity risk, refer to the "Investment Securities Portfolio" section on page 18 and the "Liquidity Risk Management" section on page 38. For further discussion of the effects of market rates on net interest income and how we manage interest rate risk, refer to the "Interest Rate and Market Risk Management" section on page 35.
The following schedule summarizes the average balances, the amount of interest earned or paid, and the applicable yields for interest-earning assets and the costs of interest-bearing liabilities:
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited) Three Months Ended
September 30, 2025 		Three Months Ended
September 30, 2024
(Dollar amounts in millions) Average
balance
Interest
Yield/
Rate 1
Average
balance
Interest
Yield/
Rate 1
ASSETS
Money market investments:
Interest-bearing deposits $ 1,582 $ 17 4.42 % $ 2,457 $ 34 5.53 %
Federal funds sold and securities purchased under agreements to resell 1,940 24 4.87 2,258 33 5.82
Total money market investments 3,522 41 4.67 4,715 67 5.67
Trading securities 83 1 4.63 32 1 4.18
Investment securities:
Available-for-sale 9,078 76 3.28 9,442 84 3.53
Held-to-maturity 9,143 50 2.19 9,936 55 2.22
Total investment securities
18,221 126 2.73 19,378 139 2.86
Loans held for sale 171 3 NM 104 2 NM
Loans and leases: 2
Commercial 31,558 474 5.97 30,671 473 6.14
Commercial real estate 13,611 227 6.64 13,523 245 7.23
Consumer 15,617 203 5.16 14,471 189 5.18
Total loans and leases 60,786 904 5.91 58,665 907 6.15
Total interest-earning assets 82,783 1,075 5.16 82,894 1,116 5.35
Cash and due from banks 702 703
Allowance for credit losses on loans and debt securities (687) (699)
Goodwill and intangibles 1,095 1,054
Other assets 5,262 5,218
Total assets $ 89,155 $ 89,170
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Savings and money market $ 39,252 $ 216 2.18 % $ 39,031 $ 266 2.72 %
Time 10,129 97 3.81 11,275 137 4.81
Total interest-bearing deposits 49,381 313 2.51 50,306 403 3.19
Borrowed funds:
Federal funds and security repurchase agreements
665 7 4.28 1,072 14 5.33
Other short-term borrowings 4,731 53 4.48 4,704 58 4.89
Long-term debt 1,210 19 6.13 546 9 5.91
Total borrowed funds 6,606 79 4.76 6,322 81 5.06
Total interest-bearing liabilities 55,987 392 2.78 56,628 484 3.40
Noninterest-bearing demand deposits 24,922 24,723
Other liabilities 1,564 1,641
Total liabilities 82,473 82,992
Shareholders' equity:
Preferred equity 66 440
Common equity 6,616 5,738
Total shareholders' equity 6,682 6,178
Total liabilities and shareholders' equity $ 89,155 $ 89,170
Spread on average interest-bearing funds 2.38 % 1.95 %
Net impact of noninterest-bearing sources of funds 0.90 % 1.08 %
Net interest margin
$ 683 3.28 % $ 632 3.03 %
Memo: total cost of deposits
$ 74,303 313 1.67 % $ 75,029 403 2.14 %
Memo: total deposits and interest-bearing liabilities $ 80,909 392 1.92 % $ 81,351 484 2.36 %
1 Taxable-equivalent rates used where applicable.
2Net of unamortized purchase premiums, discounts, and deferred loan fees and costs.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Nine Months Ended
September 30, 2025 		Nine Months Ended
September 30, 2024
(Dollar amounts in millions) Average
balance
Interest
Yield/
Rate 1
Average
balance
Interest
Yield/
Rate 1
ASSETS
Money market investments:
Interest-bearing deposits $ 1,586 $ 53 4.51 % $ 1,940 $ 81 5.59 %
Federal funds sold and securities purchased under agreements to resell 2,552 91 4.77 2,037 89 5.86
Total money market investments 4,138 144 4.67 3,977 170 5.72
Trading securities 117 4 4.68 35 1 4.42
Investment securities:
Available-for-sale 9,091 223 3.27 9,725 256 3.52
Held-to-maturity 9,348 155 2.22 10,110 169 2.24
Total investment securities
18,439 378 2.74 19,835 425 2.87
Loans held for sale 124 5 NM 68 3 NM
Loans and leases: 2
Commercial 31,327 1,383 5.90 30,553 1,383 6.05
Commercial real estate 13,593 673 6.61 13,538 734 7.24
Consumer 15,378 591 5.14 14,198 548 5.15
Total loans and leases 60,298 2,647 5.87 58,289 2,665 6.11
Total interest-earning assets 83,116 3,178 5.11 82,204 3,264 5.30
Cash and due from banks 703 701
Allowance for credit losses on loans and debt securities (691) (693)
Goodwill and intangibles 1,082 1,056
Other assets 5,317 5,305
Total assets $ 89,527 $ 88,573
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Savings and money market $ 39,256 $ 637 2.17 % $ 38,471 $ 785 2.73 %
Time 10,601 314 3.96 10,601 384 4.83
Total interest-bearing deposits 49,857 951 2.55 49,072 1,169 3.18
Borrowed funds:
Federal funds and security repurchase agreements
1,279 41 4.34 1,328 53 5.37
Other short-term borrowings 4,685 157 4.49 4,910 181 4.94
Long-term debt 1,045 50 6.29 544 25 5.96
Total borrowed funds 7,009 248 4.73 6,782 259 5.11
Total interest-bearing liabilities 56,866 1,199 2.82 55,854 1,428 3.41
Noninterest-bearing demand deposits 24,637 25,136
Other liabilities 1,571 1,650
Total liabilities 83,074 82,640
Shareholders' equity:
Preferred equity 66 440
Common equity 6,387 5,493
Total shareholders' equity 6,453 5,933
Total liabilities and shareholders' equity $ 89,527 $ 88,573
Spread on average interest-bearing funds 2.29 % 1.89 %
Net impact of noninterest-bearing sources of funds 0.89 % 1.09 %
Net interest margin
$ 1,979 3.18 % $ 1,836 2.98 %
Memo: total cost of deposits
$ 74,494 951 1.71 % $ 74,208 1,169 2.10 %
Memo: total deposits and interest-bearing liabilities $ 81,503 1,199 1.98 % $ 80,990 1,428 2.34 %
1 Taxable-equivalent rates used where applicable.
2Net of unamortized purchase premiums, discounts, and deferred loan fees and costs.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
The Allowance and Provision for Credit Losses
The allowance for credit losses ("ACL") comprises both the allowance for loan and lease losses ("ALLL") and the reserve for unfunded lending commitments ("RULC"). The ALLL represents the estimated current expected credit losses related to the loan and lease portfolio as of the balance sheet date. The RULC represents the estimated reserve for current expected credit losses associated with off-balance sheet commitments. Changes in the ALLL and RULC, net of charge-offs and recoveries, are recorded as the provision for loan and lease losses and the provision for unfunded lending commitments, respectively, on the consolidated statement of income. The ACL for debt securities is estimated separately from loans and is included in "Investment securities" on the consolidated balance sheet.
The ACL was $725 million at September 30, 2025, compared with $736 million at September 30, 2024. The year-over-year decrease in the ACL primarily reflects lower reserves associated with commercial real estate ("CRE") portfolio-specific risks, partially offset by more adverse economic scenarios and increased growth in loans and commitments. The ratio of ACL to total loans and leases was 1.20% at September 30, 2025, compared with 1.25% at September 30, 2024. The following schedule illustrates the primary drivers of changes in the ACL compared with the prior year period.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
To estimate current expected losses, we use econometric loss models that incorporate multiple economic scenarios, ranging from optimistic to baseline to stressed economic conditions. The outcomes of these scenarios are weighted to derive the credit loss estimate. Management may adjust these scenario weightings based on their assessment of prevailing conditions and reasonable and supportable forecasts.
The second bar in the schedule above reflects changes in economic forecasts and current economic conditions, incorporating management's judgment regarding the weighting of these forecasts during the current quarter. These changes resulted in a $26 million increase in the ACL from the prior year quarter, primarily due to the incorporation of more adverse economic scenarios.
The third bar captures changes in credit quality factors, including risk grade migration, portfolio-specific risks, and specific reserves on loans. Collectively, these factors contributed to a $60 million decrease in the ACL, largely driven by reduced CRE portfolio-specific risks. This decrease was partially offset by a full reserve of the $10 million remaining balance established in connection with the previously disclosed credit losses involving two related commercial loans.
The fourth bar represents changes in the composition of the loan portfolio, including shifts in loan balances and mix, the aging of the portfolio, and other qualitative risk factors. These changes resulted in a $23 million increase in the ACL, primarily driven by $1.4 billion in period-end loan growth, partially offset by changes in the mix of the loan portfolio.
The provision for credit losses, which includes both the provision for loan and lease losses and the provision for unfunded lending commitments, was $49 million in the third quarter of 2025, compared with $13 million in the third quarter of 2024. The year-over-year increase was due to the previously disclosed credit losses involving two related commercial loans. The provision for securities losses was less than $1 million during both the third quarters of 2025 and 2024.
For more information regarding the methodology used to determine the appropriate levels of the ALLL and RULC, see "Credit Risk Management" on page 22 and Note 6 in our 2024 Form 10-K.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Noninterest Income
Noninterest income is comprised of revenue generated from products and services that typically do not bear an associated interest rate or yield. It is categorized as either customer-related or noncustomer-related. Customer-related noninterest income excludes items such as securities gains and losses, dividends, and insurance-related income.
Noninterest income accounted for 22% of total net revenue (sum of net interest income plus noninterest income) in both the third quarters of 2025 and 2024. It increased $17 million, or 10%, for the three months ended September 30, and $43 million, or 8%, for the nine months ended September 30, 2025, relative to the same prior year period. The following schedule presents a comparison of the major components of noninterest income:
NONINTEREST INCOME
Three Months Ended
September 30, 		Amount
change 		Percent
change 		Nine Months Ended
September 30, 		Amount
change 		Percent
change
(Dollar amounts in millions) 2025 2024 2025 2024
Commercial account fees
$ 47 $ 46 $ 1 2 % $ 138 $ 135 $ 3 2 %
Card fees
24 24 - - 71 72 (1) (1)
Retail and business banking fees 19 18 1 6 55 50 5 10
Loan-related fees and income 20 17 3 18 56 50 6 12
Capital markets fees and income 1
24 25 (1) (4) 79 70 9 13
Wealth management fees 14 14 - - 43 44 (1) (2)
Other customer-related fees 15 14 1 7 43 42 1 2
Customer-related noninterest income
163 158 5 3 485 463 22 5
Dividends and other income 15 5 10 NM 34 33 1 3
Securities gains (losses), net 11 9 2 22 31 11 20 NM
Noncustomer-related noninterest income 26 14 12 86 65 44 21 48
Total noninterest income
$ 189 $ 172 $ 17 10 $ 550 $ 507 $ 43 8
Adjusted customer-related noninterest income 2
$ 174 $ 161 $ 13 8 % $ 496 $ 466 $ 30 6 %
1 Effective the first quarter of 2025, capital markets fees and income included the net CVA, which was previously disclosed under noncustomer-related noninterest income as fair value and nonhedge derivative income. For the three and nine months ended September 30, 2025, the net CVA was a loss of $11 million. This loss was primarily driven by an update to our valuation methodology, in addition to changes in other market factors. For the three and nine months ended September 30, 2024, the net CVA was a loss of $3 million.
2Net of CVA. For information on non-GAAP financial measures, see page 41.
Customer-related Noninterest Income
Customer-related noninterest income increased $5 million, or 3%, compared with the prior year period. This growth was primarily driven by a $3 million increase in loan-related fees and income, largely resulting from increased mortgage loan sales activity. Excluding the impact of the net CVA loss, capital markets fees and income increased $7 million, or 25%, from the prior year period, benefiting from increased loan syndication activity and higher customer swap fee revenue.
For the nine months ended September 30, 2025, customer-related noninterest income increased $22 million, or 5%, relative to the same prior year period. Excluding the net CVA loss, capital markets fees and income increased $17 million, or 23%, primarily due to higher swap fees, investment banking advisory fees, and loan syndication fees. Loan-related fees and income increased $6 million, reflecting the same drivers noted above. Retail and business banking fees increased $5 million, mainly due to higher overdraft and deposit service fees. Commercial account fees increased $3 million, largely as a result of higher account analysis fees.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Noncustomer-related Noninterest Income
Noncustomer-related noninterest income increased $12 million, or 86%, compared with the prior year period. This growth was primarily driven by a $10 million increase in dividends and other income, mainly attributable to a $6 million gain on the sale of a bank-owned property and higher dividends received on FHLB stock.
For the nine months ended September 30, 2025, noncustomer-related noninterest income increased $21 million, or 48%, relative to the same prior year period. This increase was largely attributable to valuation adjustments in our Small Business Investment Company ("SBIC") investment portfolio. Notably, in the second quarter of 2025, we recognized an $11 million unrealized gain following the successful initial public offering ("IPO") of one of our SBIC investments, FatPipe, Inc. This investment will continue to be marked to market until our shares, which are subject to a minimum 180-day lock-up period from the IPO, are fully divested.
Noninterest Expense
The following schedule presents a comparison of the major components of noninterest expense:
NONINTEREST EXPENSE
Three Months Ended
September 30, 		Amount
change 		Percent
change 		Nine Months Ended
September 30, 		Amount
change 		Percent
change
(Dollar amounts in millions) 2025 2024 2025 2024
Salaries and employee benefits $ 337 $ 317 $ 20 6 % $ 1,015 $ 966 $ 49 5 %
Technology, telecom, and information processing 70 66 4 6 205 194 11 6
Occupancy and equipment, net 42 40 2 5 123 119 4 3
Professional and legal services 14 14 - - 40 47 (7) (15)
Marketing and business development 11 12 (1) (8) 34 35 (1) (3)
Deposit insurance and regulatory expense 16 19 (3) (16) 58 74 (16) (22)
Credit-related expense 6 6 - - 18 19 (1) (5)
Other real estate expense, net - - - NM - (1) 1 NM
Other 31 28 3 11 99 84 15 18
Total noninterest expense
$ 527 $ 502 $ 25 5 $ 1,592 $ 1,537 $ 55 4
Adjusted noninterest expense (non-GAAP)
$ 520 $ 499 $ 21 4 % $ 1,574 $ 1,516 $ 58 4 %
Noninterest expense increased $25 million, or 5%, relative to the prior year quarter. Salaries and employee benefits expense increased $20 million, primarily due to higher severance and base salaries, along with increased incentive compensation accruals reflecting improved profitability. Technology, telecom, and information processing expense increased $4 million, largely due to higher costs associated with application software, licensing, and maintenance.
Adjusted noninterest expense increased $21 million, or 4%. The efficiency ratio improved to 59.6%, compared with 62.5%, reflecting positive operating leverage as adjusted pre-provision net revenue increased $53 million, or 18%. For more information on non-GAAP financial measures, see page 41.
For the nine months ended September 30, 2025, noninterest expense increased $55 million, or 4%, relative to the same prior year period. Salaries and employee benefits expense increased $49 million, mainly due to the same factors previously noted. Other noninterest expense increased $15 million, driven by higher subscription costs, the impairment of certain long-lived assets, increased legal reserves, and a success fee accrual associated with the IPO of an SBIC investment. Technology, telecom, and information processing expense increased $11 million, reflecting the same drivers noted above. These increases were partially offset by a $16 million reduction in deposit insurance and regulatory expense, attributable to the Federal Deposit Insurance Corporation ("FDIC") special assessment accrual in the same prior year period, and a $7 million decline in professional and legal services, mainly due to reduced technology-related consulting expenses.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Technology Spend
We invest in technology initiatives designed to improve our products and services, increase our operational efficiency, and enable us to remain competitive. We report these investments as technology spend, which includes the following:
•Technology, telecom, and information processing expense- includes current period expenses presented on the consolidated statement of income related to application software licensing and maintenance, telecommunications, and data processing, less related amortization and depreciation of capitalized technology investments;
•Other technology-related expense- includes related noncapitalized salaries and employee benefits, occupancy and equipment, and professional and legal services; and
•Technology investments- includes capitalized technology infrastructure equipment, hardware, and software (both purchased and internally developed).
The following schedule presents the composition of our technology spend:
TECHNOLOGY SPEND
Three Months Ended
September 30, 		Amount
change 		Percent
change 		Nine Months Ended
September 30, 		Amount
change 		Percent
change
(Dollar amounts in millions) 2025 2024 2025 2024
Technology, telecom, and information processing expense $ 70 $ 66 $ 4 6 % $ 205 $ 194 $ 11 6 %
Less: related amortization and depreciation (20) (19) (1) 5 (58) (59) 1 (2)
Other technology-related expense 64 62 2 3 186 188 (2) (1)
Capitalized technology investments 17 7 10 NM 46 26 20 77
Total technology spend
$ 131 $ 116 $ 15 13 $ 379 $ 349 $ 30 9
Total technology spend increased $15 million, or 13%, compared with the same prior year quarter. This increase was driven by higher capitalized technology investments associated with lending and customer-focused technology initiatives. In addition, technology, telecom, and information processing expense increased, largely reflecting the previously noted increases in application software, licensing, and maintenance costs.
Income Taxes
The following schedule summarizes the income tax expense and effective tax rates for the periods presented:
INCOME TAXES
Three Months Ended
September 30, 		Nine Months Ended
September 30,
(Dollar amounts in millions) 2025 2024 2025 2024
Income before income taxes $ 285 $ 277 $ 836 $ 742
Income tax expense 63 63 200 174
Effective tax rate 22.1 % 22.7 % 23.9 % 23.5 %
The effective tax rate was 22.1% and 22.7% for the three months ended September 30, 2025 and 2024, respectively. For more information about the factors that impacted the income tax rates, as well as details on deferred income tax assets and liabilities, see Note 12 of the Notes to Consolidated Financial Statements.
Preferred Stock Dividends
Preferred stock dividends totaled $1 million and $10 million for the third quarters of 2025 and 2024, respectively. The year-over-year decrease was due to the redemption of the outstanding shares of our Series G, I, and J preferred stock during the fourth quarter of 2024.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
BALANCE SHEET ANALYSIS
Interest-Earning Assets
Interest-earning assets-which include loans and leases, investment securities, and money market investments-carry associated interest rates or yields. We strive to maintain a high level of interest-earning assets relative to total assets. For more information regarding average balances, the associated revenue generated, and the corresponding yields of these assets, see the Average Balance Sheet on page 11.
Investment Securities Portfolio
We invest in securities primarily to provide balance sheet liquidity. The portfolio largely consists of securities that can be readily converted to cash or used to generate liquidity through secured borrowing agreements, without the need to sell the securities. Our investment securities portfolio also helps to balance the inherent interest rate mismatch between loans and deposits, thereby helping to preserve the economic value of shareholders' equity. The estimated deposit duration at September 30, 2025 was assumed to be longer than the loan duration (including swaps). At September 30, 2025, the estimated duration of the investment securities portfolio, which measures price sensitivity to interest rate changes, was 3.7 years, compared with 3.4 years at December 31, 2024, primarily due to revised prepayment assumptions on certain securities.
For more information about our borrowing capacity associated with the investment securities portfolio and how we manage our liquidity risk, refer to the "Liquidity Risk Management" section on page 38. For more information on fair value measurements and the accounting for our investment securities portfolio, refer to Note 3 and Note 5 of the Notes to Consolidated Financial Statements.
The following schedule presents the major components of our investment securities portfolio:
INVESTMENT SECURITIES PORTFOLIO
September 30, 2025 December 31, 2024
(In millions) Par Value Amortized
cost 		Fair
value 		Par Value Amortized
cost 		Fair
value
Available-for-sale
U.S. Treasury securities $ 1,400 $ 1,401 $ 1,311 $ 780 $ 781 $ 662
U.S. Government agencies and corporations:
Agency securities 353 349 332 446 441 415
Agency guaranteed mortgage-backed securities 7,193 7,208 6,171 7,656 7,713 6,451
Small Business Administration loan-backed securities 352 374 358 427 455 434
Municipal securities 948 1,022 973 1,096 1,186 1,108
Other debt securities 25 25 25 25 25 25
Total available-for-sale 10,271 10,379 9,170 10,430 10,601 9,095
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities 139 139 135 148 148 140
Agency guaranteed mortgage-backed securities 10,248 8,643 8,704 10,983 9,202 8,941
Municipal securities 277 277 267 319 319 301
Total held-to-maturity 10,664 9,059 9,106 11,450 9,669 9,382
Total investment securities $ 20,935 $ 19,438 $ 18,276 $ 21,880 $ 20,270 $ 18,477
The amortized cost of total investment securities declined $832 million, or 4%, from December 31, 2024, primarily due to principal reductions, net of reinvestments. At both September 30, 2025 and December 31, 2024, approximately 7% of the portfolio consisted of floating-rate instruments. Additionally, at September 30, 2025, we had active pay-fixed interest rate swaps with an aggregate notional amount of $4.5 billion. These swaps are designated as fair value hedges of fixed-rate available-for-sale ("AFS") securities and effectively convert the fixed interest income on the hedged portion of the securities to a floating rate.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
At September 30, 2025, our AFS investment securities portfolio included approximately $108 million in net premium, distributed across various security categories. Taxable-equivalent premium amortization for these investment securities totaled $12 million for the third quarter of 2025, compared with $14 million in the same prior year period.
For more information regarding our investment securities portfolio, swaps, and related unrealized gains and losses, refer to the "Interest Rate Risk Management" section on page 35, the "Capital Management" section on page 39, and Note 5 of the Notes to Consolidated Financial Statements.
Municipal Investments and Extensions of Credit
We support our communities by offering a range of financial products and services to state and local governments ("municipalities"), including deposit services, lending, and investment banking services. Additionally, we invest in securities issued by municipal entities. Our municipal lending portfolio generally includes obligations that are repaid from, or secured by, the general funds or pledged revenues of municipalities, as well as by real estate or equipment. It also includes loans extended to private commercial and 501(c)(3) not-for-profit organizations that utilize a pass-through municipal structure to benefit from favorable tax treatment.
The following schedule presents our total investments and extensions of credit to municipalities:
MUNICIPAL INVESTMENTS AND EXTENSIONS OF CREDIT
(In millions) September 30,
2025 		December 31,
2024
Loans and leases $ 4,341 $ 4,364
Unfunded lending commitments 398 524
Available-for-sale securities 973 1,108
Held-to-maturity securities 277 319
Trading securities 134 35
Total
$ 6,123 $ 6,350
Our municipal loans and securities are primarily concentrated within our geographic footprint. At September 30, 2025, approximately $2 million of municipal loans and leases were on nonaccrual, compared with $11 million at December 31, 2024. These nonaccrual loans were extended to private commercial entities utilizing a pass-through municipal structure to obtain favorable tax treatment.
Municipal securities are internally risk-graded, using methodologies aligned with those applied to loans, with grading frameworks tailored to the size and nature of the credit exposure. These internal risk grades-Pass, Special Mention, and Substandard-are consistent with published regulatory risk classifications. At September 30, 2025, all municipal securities were rated as Pass. For additional information regarding the credit quality of our municipal loans and securities, see Notes 5 and 6 of the Notes to Consolidated Financial Statements.
Loan and Lease Portfolio
We provide a wide range of lending products to commercial customers, primarily small- and medium-sized businesses, as well as other products secured by commercial real estate. Additionally, we provide various retail banking products and services to consumers and small businesses.
The following schedule presents the composition of our loan and lease portfolio:
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
LOAN AND LEASE PORTFOLIO
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total loans 		Amount % of
total loans
Commercial:
Commercial and industrial $ 17,222 28.6 % $ 16,891 28.4 %
Owner-occupied 9,267 15.4 9,333 15.7
Municipal 4,341 7.2 4,364 7.4
Leasing 349 0.6 377 0.6
Total commercial 31,179 51.8 30,965 52.1
Commercial real estate:
Term 11,008 18.2 10,703 18.0
Construction and land development 2,469 4.1 2,774 4.7
Total commercial real estate 13,477 22.3 13,477 22.7
Consumer:
1-4 family residential 10,423 17.2 9,939 16.7
Home equity credit line 3,848 6.4 3,641 6.1
Construction and other consumer real estate 769 1.3 810 1.4
Bankcard and other revolving plans 477 0.8 457 0.8
Other 129 0.2 121 0.2
Total consumer 15,646 25.9 14,968 25.2
Total loans and leases $ 60,302 100.0 % $ 59,410 100.0 %
During the first nine months of 2025, the loan and lease portfolio increased $892 million, or 2%, to $60.3 billion at September 30, 2025. This growth was primarily driven by increases in the consumer 1-4 family residential mortgage, commercial and industrial, and term commercial real estate loan portfolios. The ratio of loans and leases to total assets was 68% at September 30, 2025, compared with 67% at December 31, 2024. Commercial and industrial loans remained the largest loan segment, representing 29% and 28% of total loans for the same respective periods.
Other Noninterest-Bearing Investments
Other noninterest-bearing investments consist of equity investments held primarily for capital appreciation, dividends, or to meet certain regulatory requirements. The following schedule presents our related investments.
OTHER NONINTEREST-BEARING INVESTMENTS
(Dollar amounts in millions) September 30,
2025 		December 31,
2024 		Amount change Percent change
Bank-owned life insurance $ 571 $ 562 $ 9 2 %
Federal Home Loan Bank stock 145 124 21 17
Federal Reserve stock 54 65 (11) (17)
Farmer Mac stock 30 28 2 7
SBIC investments 252 204 48 24
Other 46 37 9 24
Total other noninterest-bearing investments $ 1,098 $ 1,020 $ 78 8
Other noninterest-bearing investments increased $78 million, or 8%, during the first nine months of 2025. This growth was primarily attributable to higher balances in our SBIC investment portfolio and increased holdings of FHLB stock.
The SBIC investment portfolio increased $48 million, largely driven by new investments and valuation adjustments on related investments. The increase in FHLB stock was due to higher FHLB borrowings. To maintain borrowing capacity, we are required to hold FHLB stock equivalent to approximately 4-5% of our outstanding FHLB borrowings.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Premises, Equipment, and Software
In July 2024, we successfully completed the final phase of a multi-year project to replace our core loan and deposit banking systems. As a result, we transitioned substantially all commercial, commercial real estate, and non-mortgage consumer loans, as well as deposit accounts, to a modern, integrated core platform. We continue to invest in additional lending, deposit, and other customer-focused technology initiatives aimed at further modernizing our systems, improving customer experiences, and enhancing operational performance.
The following schedule summarizes the capitalized costs associated with the core system replacement project, which are amortized using a useful life of ten years:
CAPITALIZED COSTS ASSOCIATED WITH THE CORE SYSTEM REPLACEMENT PROJECT
September 30, 2025
(In millions) Phase 1 Phase 2 Phase 3 Total
Total amount of capitalized costs, less accumulated amortization $ 10 $ 29 $ 191 $ 230
End of scheduled amortization period Q2 2027 Q1 2029 Q2 2033
Deposits
Deposits are our primary funding source. The following schedule presents the composition of our deposit portfolio:
DEPOSIT PORTFOLIO
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total
deposits 		Amount % of
total
deposits
Deposits by type
Noninterest-bearing demand $ 26,133 34.9 % $ 24,704 32.4 %
Interest-bearing:
Savings and money market 38,689 51.7 40,037 52.5
Time 6,232 8.3 6,448 8.5
Brokered 3,824 5.1 5,034 6.6
Total interest-bearing 48,745 65.1 51,519 67.6
Total deposits $ 74,878 100.0 % $ 76,223 100.0 %
Deposit-related metrics
Estimated amount of insured deposits $ 41,290 55 % $ 41,836 55 %
Estimated amount of uninsured deposits 33,588 45 34,387 45
Estimated amount of collateralized deposits 1
2,686 4 3,199 4
Loan-to-deposit ratio 81% 78%
1Includes both insured and uninsured deposits.
Total deposits declined $1.3 billion, or 2%, from December 31, 2024. Interest-bearing deposits decreased $2.8 billion, primarily due to the migration of a consumer interest-bearing product into a new noninterest-bearing offering, as well as a reduction in brokered deposits. This decline was partially offset by a $1.4 billion increase in noninterest-bearing demand deposits, mainly driven by the aforementioned product migration. At September 30, 2025, customer deposits (excluding brokered deposits) totaled $71.1 billion, compared with $71.2 billion at December 31, 2024.
At September 30, 2025, the total estimated amount of uninsured deposits was $33.6 billion, or 45% of total deposits, compared with $34.4 billion, or 45%, at December 31, 2024. The loan-to-deposit ratio was 81%, compared with 78% for the same periods. For additional information on liquidity, including the ratio of available liquidity to uninsured deposits, see "Liquidity Risk Management" on page 38.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
RISK MANAGEMENT
Risk management is a core component to our operations and a critical factor in achieving our strategic objectives. We employ various strategies to prudently manage the risks inherent in our business, including credit risk, market and interest rate risk, liquidity risk, strategic and business risk, operational risk, technology risk, cybersecurity risk, capital/financial reporting risk, legal/compliance risk (including regulatory risk), and reputational risk. Oversight of these risks is conducted through various management committees, with the Enterprise Risk Management Committee serving as the focal point. For a more comprehensive discussion of these risks, see "Risk Factors" in our 2024 Form 10-K.
Credit Risk Management
Credit risk is the possibility of loss from the failure of a borrower, guarantor, or another obligor to fully perform under the terms of a credit-related contract. Credit risk arises primarily from our lending activities and off-balance sheet credit instruments.
Our credit policies, credit risk management, and credit examination functions collectively support the oversight of credit risk. We emphasize strong underwriting standards and the early detection of potential problem credits to develop and implement timely action plans, thereby minimizing potential losses. These formal credit policies and procedures provide a framework for consistent underwriting and sound credit decisions at the local banking affiliate level. Our policies include standards for sensitivity and scenario analysis to assess the resilience of borrowers, especially during periods of uncertain or adverse economic conditions. Additionally, we require borrowers to provide evidence of insurance for properties used as collateral, with coverage and levels appropriate to the specific credit.
Our business activity is conducted primarily within the geographic footprint of our banking affiliates. We strive to avoid the risk of undue concentrations of credit in any particular industry, collateral type, location, or with any individual customer or counterparty. For a more comprehensive discussion of our credit risk management, see "Credit Risk Management" in our 2024 Form 10-K.
U.S. Government Agency Guaranteed Loans
We participate in various guaranteed lending programs sponsored by United States ("U.S.") government agencies, including the U.S. Small Business Administration ("SBA"), Federal Housing Authority, U.S. Department of Veterans Affairs, Export-Import Bank of the U.S., and the U.S. Department of Agriculture. At September 30, 2025, $613 million of related loans were guaranteed, primarily by the SBA.
The following schedule presents the composition of our U.S. government agency guaranteed loans:
U.S. GOVERNMENT AGENCY GUARANTEED LOANS
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount Percent
guaranteed 		Amount Percent
guaranteed
Commercial $ 761 77 % $ 687 78 %
Commercial real estate 31 74 25 76
Consumer 4 100 4 100
Total loans $ 796 77 $ 716 78
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Commercial Lending
The following schedule presents the composition of our commercial lending portfolio:
COMMERCIAL LENDING PORTFOLIO
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of total
commercial loans 		Amount % of total
commercial loans 		Amount change Percent change
Commercial:
Commercial and industrial $ 17,222 55.3 % $ 16,891 54.6 % $ 331 2.0 %
Owner-occupied 9,267 29.7 9,333 30.1 (66) (0.7)
Municipal 4,341 13.9 4,364 14.1 (23) (0.5)
Leasing 349 1.1 377 1.2 (28) (7.4)
Total commercial $ 31,179 100.0 % $ 30,965 100.0 % $ 214 0.7
Our commercial loans encompass a diverse range of industries and generally mature within one to five years, with amortization schedules determined by the underlying collateral and guarantees. These loans are typically structured as seasonal, term, working capital, or bridge loans, and are offered as revolving and non-revolving lines of credit, amortizing term loans, guidance facilities, and single-payment loans. They include covenants that require borrowers to provide regular financial reporting to monitor business performance and assess leverage, debt service coverage, and liquidity.
The underwriting process for commercial loans primarily involves analyzing management, financial performance, industry, sponsorship (if applicable), and transaction structure. Credit enhancements are generally provided by collateral and guarantees from the owners or sponsors. Prospective cash flows are subjected to various downside scenario analyses, including revenue decline, margin compression, and interest rate fluctuations.
The following schedule presents the geographic distribution of our commercial lending portfolio, with geographies based on the location of the primary borrower:
COMMERCIAL LENDING BY GEOGRAPHY
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total 		Nonaccrual loans Amount % of
total 		Nonaccrual loans
Commercial:
Arizona $ 2,250 7.2 % $ 4 $ 2,202 7.1 % $ 5
California 6,215 19.9 73 6,190 20.0 58
Colorado 1,727 5.5 5 1,892 6.1 17
Nevada 1,366 4.4 3 1,336 4.3 11
Texas 7,574 24.3 33 7,367 23.8 47
Utah/Idaho 6,503 20.9 24 6,309 20.4 6
Washington/Oregon 1,429 4.6 9 1,338 4.3 10
Other 1
4,115 13.2 2 4,331 14.0 4
Total commercial $ 31,179 100.0 % $ 153 $ 30,965 100.0 % $ 158
1 No other geography exceeds 2.0% and 2.6% for September 30, 2025 and December 31, 2024, respectively.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
The following schedule presents the industry distribution of our commercial lending portfolio, classified based on the North American Industry Classification System:
COMMERCIAL LENDING BY INDUSTRY
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total 		Nonaccrual loans Amount % of
total 		Nonaccrual loans
Real estate, rental, and leasing $ 3,346 10.7 % $ 36 $ 3,083 10.0 % $ 7
Retail trade 2,889 9.3 2 2,873 9.3 7
Manufacturing 2,392 7.7 20 2,322 7.5 7
Finance and insurance 2,374 7.6 11 2,762 8.9 1
Healthcare and social assistance 2,334 7.5 7 2,541 8.2 34
Wholesale trade 2,159 6.9 1 1,909 6.2 2
Public administration 1,954 6.3 - 2,106 6.8 -
Hospitality and food services 1,535 4.9 3 1,352 4.4 2
Transportation and warehousing 1,508 4.8 7 1,589 5.1 7
Utilities 1
1,491 4.8 3 1,389 4.5 2
Construction 1,446 4.6 12 1,335 4.3 26
Educational services 1,293 4.2 - 1,292 4.2 -
Other Services (except Public administration) 1,160 3.7 2 1,069 3.4 3
Mining, quarrying, and oil and gas extraction 1,093 3.5 - 1,178 3.8 -
Professional, scientific, and technical services 1,061 3.4 3 1,057 3.4 25
Other 2
3,144 10.1 46 3,108 10.0 35
Total $ 31,179 100.0 % $ 153 $ 30,965 100.0 % $ 158
1 Includes primarily utilities, power, and renewable energy.
2 No other industry group exceeds 3.1% and 3.4% for September 30, 2025 and December 31, 2024, respectively.
As previously noted, our commercial lending portfolio is well-diversified across both geographic regions and industry sectors. In light of increased investor interest in loans extended to nondepository financial institutions ("NDFIs"), we provide the following information regarding these exposures within our commercial lending portfolio.
Loans to Nondepository Financial Institutions (NDFIs)
NDFIs encompass a wide range of financial entities that provide services similar to those of traditional banking institutions, but do not accept public deposits and are not generally subject to oversight by federal banking regulators. We provide financing to NDFIs, including mortgage intermediaries, business development companies ("BDCs"), private equity funds, consumer credit platforms, and other financial entities.
We regularly monitor NDFI exposures through borrower-level hold limits, perform stress testing of underlying portfolios, verify compliance with applicable regulatory requirements, review portfolio quality, and assess liquidity and capital adequacy.
Our NDFI portfolio is diversified across various lending segments and asset classes, including:
•Mortgage credit intermediaries- Loans to mortgage companies engaged in residential or commercial mortgage origination and servicing; special purpose entities supporting mortgage-related securitization activities, such as real estate investment trusts ("REITs") and collateralized debt obligations.
•Business credit intermediaries - Loans to finance companies, direct lenders, private debt funds, equipment leasing companies, BDCs, SBICs, senior loan funds, and other nonbank business lenders.
•Private equity funds - Capital call commitment and subscription-based facilities extended to private equity, venture capital, and other general partnership funds.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
•Consumer credit intermediaries- Loans to nonbank consumer secured and unsecured lending platforms, as well as special purposes entities, finance companies, direct lenders, private debt funds, equipment leasing companies, or other financial intermediaries whose underlying assets primarily consist of consumer loans.
•Other- Loans to insurance companies, investment banks, broker-dealers, publicly-listed investment funds, hedge funds, family offices, and other investment firms and financial vehicles.
At September 30, 2025, total loans to NDFIs amounted to approximately $2.0 billion, representing 6.5% of total commercial loans and 3.4% of total loans. This compares with $2.4 billion, or 7.6% of total commercial loans and 4.0% of total loans, at December 31, 2024.
The following schedule presents the composition of our NDFI lending portfolio:
NDFI LENDING PORTFOLIO
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total 		Nonaccrual loans Amount % of
total 		Nonaccrual loans
Mortgage credit intermediaries $ 389 19.1 % $ 10 $ 559 23.8 % $ -
Business credit intermediaries 556 27.3 - 489 20.8 1
Private equity funds 133 6.5 - 189 8.0 -
Consumer credit intermediaries 345 17.0 - 349 14.8 -
Other financial institutions 614 30.1 - 767 32.6 -
Total NDFI portfolio $ 2,037 100.0 % $ 10 $ 2,353 100.0 % $ 1
The following schedule presents NDFI loan credit quality metrics:
NDFI LOAN CREDIT QUALITY
(Dollar amounts in millions) September 30, 2025 December 31, 2024
Credit quality metrics
Criticized loan ratio 1.0 % 5.5 %
Classified loan ratio 1.0 % 5.5 %
Nonaccrual loan ratio 0.5 % - %
Delinquency ratio - % - %
Annualized ratio of NDFI net charge-offs 1(recoveries) to average loans
9.1 % - %
Ratio of allowance for credit losses to NDFI loans, at period end 1.23 % 0.64 %
1 Total NDFI net charge-offs for the third quarter of 2025 included only the previously discussed $50 million charge-off associated with the revolving lines of credit extended to two related commercial borrowers to finance the origination and purchase of commercial and residential mortgages.
Commercial Real Estate Lending
The following schedule presents the composition of our commercial real estate lending portfolio:
COMMERCIAL REAL ESTATE LENDING PORTFOLIO
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of total
CRE loans 		Amount % of total
CRE loans 		Amount change Percent change
Commercial real estate:
Term $ 11,008 81.7 % $ 10,703 79.4 % $ 305 2.8 %
Construction and land development 2,469 18.3 2,774 20.6 (305) (11.0)
Total commercial real estate $ 13,477 100.0 % $ 13,477 100.0 % $ - -
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Term CRE loans typically mature within three to seven years and may include full, partial, and non-recourse guarantee structures. Standard term CRE loan structures feature annually tested operating covenants that require loan rebalancing based on minimum debt service coverage, debt yield, or loan-to-value ("LTV") ratios. Construction and land development loans generally mature in 18 to 36 months and contain full or partial recourse guarantee structures, with one- to five-year extension options or roll-to-permanent options that often convert into term loans.
Underwriting for commercial properties primarily focuses on the economic viability of the project, with significant consideration given to the creditworthiness and experience of the sponsor. We generally require that the owner's equity be invested prior to any advances. Loan agreements often include remargining requirements (equity infusions required upon a decline in the value or cash flow of the collateral) and sponsor guarantees.
As part of our disciplined underwriting and collateral evaluation practices, real estate appraisals are typically obtained when extending credit secured by commercial real estate. In some instances, automated valuation services or internal evaluations may be used. Appraisals are ordered and reviewed prior to loan closing, and new appraisals or evaluations are generally initiated when market conditions suggest a potential decline in collateral value, or when a loan is modified, renewed, or demonstrates signs of credit deterioration. CRE LTV ratios are calculated by dividing the outstanding loan balance by the estimated collateral value based on the most recent appraisal. At September 30, 2025, the weighted average LTV ratio for our term CRE portfolio was less than 60%.
For a more comprehensive discussion of CRE loans and our underwriting, see "Commercial Real Estate Loans" in our 2024 Form 10-K.
The following schedule presents the geographic distribution of our commercial real estate lending portfolio, based on the location of the primary collateral.
COMMERCIAL REAL ESTATE LENDING BY GEOGRAPHY
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total 		Nonaccrual loans Amount % of
total 		Nonaccrual loans
Commercial real estate:
Arizona $ 1,652 12.3 % $ - $ 1,801 13.4 % $ -
California 3,615 26.8 45 3,569 26.5 50
Colorado 728 5.4 16 666 4.9 -
Nevada 1,059 7.9 - 1,104 8.2 -
Texas 2,619 19.4 9 2,596 19.2 8
Utah/Idaho 2,342 17.4 - 2,170 16.1 -
Washington/Oregon 1,117 8.3 - 1,090 8.1 -
Other 345 2.5 - 481 3.6 1
Total commercial real estate $ 13,477 100.0 % $ 70 $ 13,477 100.0 % $ 59
The following schedule presents our commercial real estate lending portfolio by the type of collateral:
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
COMMERCIAL REAL ESTATE LENDING BY COLLATERAL TYPE
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total 		Nonaccrual loans Amount % of
total 		Nonaccrual loans
Commercial property
Multifamily $ 3,889 28.9 % $ - $ 4,007 29.7 % $ 1
Industrial 3,034 22.5 - 2,954 21.9 -
Office 1,708 12.7 61 1,812 13.5 50
Retail 1,603 11.9 - 1,533 11.4 -
Hospitality 660 4.9 9 625 4.6 8
Land 253 1.9 - 261 1.9 -
Other 1
1,547 11.5 - 1,644 12.2 -
Residential property 2
Single family 394 2.9 - 330 2.5 -
Land 100 0.7 - 110 0.8 -
Condo/Townhome 22 0.2 - 17 0.1 -
Other 1
267 1.9 - 184 1.4 -
Total $ 13,477 100.0 % $ 70 $ 13,477 100.0 % $ 59
1 Included in the total amount of the "Other" commercial and residential categories was approximately $378 million and $342 million of unsecured loans at September 30, 2025 and December 31, 2024, respectively.
2 Residential property consists primarily of loans provided to commercial homebuilders for land, lot, and single-family housing developments.
As previously discussed, our commercial real estate lending portfolio is diversified across geography and collateral type, with the largest concentration in multifamily properties. Given investor interest in multifamily, industrial, and office collateral types, we provide additional analysis of these segments of our CRE portfolio below.
Multifamily CRE
At September 30, 2025 and December 31, 2024, our multifamily CRE loan portfolio totaled $3.9 billion and $4.0 billion, representing 29% and 30% of the total CRE loan portfolio, respectively. Approximately 38% of our multifamily CRE loan portfolio is scheduled to mature within the next 12 months. We believe that substantially all of these borrowers will be able to refinance at maturity through the Bank or other lenders, due to the cash flows from the properties, acceptable LTVs, equity levels, and guarantor support.
The following schedule presents the composition of our multifamily CRE loan portfolio and other related credit quality metrics:
MULTIFAMILY CRE LOAN PORTFOLIO
(Dollar amounts in millions) September 30,
2025 		December 31, 2024
Multifamily CRE
Term $ 2,932 $ 2,918
Construction and land development 957 1,089
Total multifamily CRE $ 3,889 $ 4,007
Credit quality metrics
Criticized loan ratio 16.7 % 21.5 %
Classified loan ratio 13.0 % 18.8 %
Nonaccrual loan ratio - % - %
Delinquency ratio - % - %
Annualized ratio of multifamily CRE net charge-offs (recoveries) to average loans - % - %
Ratio of allowance for credit losses to multifamily CRE loans, at period end 2.06 % 2.55 %
Weighted average LTV for multifamily term CRE loans 54 % 57 %
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
The following schedules present our multifamily CRE loan portfolio, categorized by collateral location for the periods presented:
MULTIFAMILY CRE LOAN PORTFOLIO BY COLLATERAL LOCATION
September 30, 2025
Loan Type
(Dollar amounts in millions) Term Construction and land development Total % of
total 		Nonaccrual loans
Multifamily CRE
Arizona $ 225 $ 111 $ 336 8.6 % $ -
California 802 176 978 25.2 -
Colorado 93 132 225 5.8 -
Nevada 198 36 234 6.0 -
Texas 903 210 1,113 28.6 -
Utah/Idaho 410 202 612 15.7 -
Washington/Oregon 240 90 330 8.5 -
Other 1
61 - 61 1.6 -
Total multifamily CRE $ 2,932 $ 957 $ 3,889 100.0 % $ -
December 31, 2024
Loan Type
(Dollar amounts in millions) Term Construction and land development Total % of
total 		Nonaccrual loans
Multifamily CRE
Arizona $ 364 $ 142 $ 506 12.6 % $ -
California 850 172 1,022 25.5 1
Colorado 91 101 192 4.8 -
Nevada 188 99 287 7.2 -
Texas 808 310 1,118 27.9 -
Utah/Idaho 320 134 454 11.3 -
Washington/Oregon 234 130 364 9.1 -
Other 1
63 1 64 1.6 -
Total multifamily CRE $ 2,918 $ 1,089 $ 4,007 100.0 % $ 1
1 Other included $55 million of multifamily loans with collateral located in New Mexico at both September 30, 2025 and December 31, 2024.
Industrial CRE
At both September 30, 2025 and December 31, 2024, our industrial CRE loan portfolio totaled $3.0 billion, representing 23% and 22% of the total CRE loan portfolio, respectively. Approximately 35% of the industrial CRE loan portfolio is scheduled to mature within the next 12 months. We believe that substantially all of these borrowers will be able to refinance at maturity through the Bank or other lenders, due to the cash flows from the properties, acceptable LTVs, equity levels, and guarantor support.
The following schedule presents the composition of our industrial CRE loan portfolio and other related credit quality metrics:
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
INDUSTRIAL CRE LOAN PORTFOLIO
(Dollar amounts in millions) September 30, 2025 December 31, 2024
Industrial CRE
Term $ 2,667 $ 2,462
Construction and land development 367 492
Total industrial CRE $ 3,034 $ 2,954
Credit quality metrics
Criticized loan ratio 13.7 % 14.6 %
Classified loan ratio 13.2 % 12.8 %
Nonaccrual loan ratio - % - %
Delinquency ratio 0.6 % - %
Annualized ratio of industrial CRE net charge-offs (recoveries) to average loans - % - %
Ratio of allowance for credit losses to industrial CRE loans, at period end 1.35 % 2.30 %
Weighted average LTV for industrial term CRE loans 52 % 53 %
The following schedules present our industrial CRE loan portfolio, categorized by collateral location for the periods presented:
INDUSTRIAL CRE LOAN PORTFOLIO BY COLLATERAL LOCATION
September 30, 2025
Loan Type
(Dollar amounts in millions) Term Construction and land development Total % of
total 		Nonaccrual loans
Industrial CRE
Arizona $ 418 $ 20 $ 438 14.4 % $ -
California 860 67 927 30.6 -
Colorado 78 10 88 2.9 -
Nevada 233 57 290 9.6 -
Texas 447 43 490 16.2 -
Utah/Idaho 358 120 478 15.7 -
Washington/Oregon 221 50 271 8.9 -
Other 1
52 - 52 1.7 -
Total industrial CRE $ 2,667 $ 367 $ 3,034 100.0 % $ -
December 31, 2024
Loan Type
(Dollar amounts in millions) Term Construction and land development Total % of
total 		Nonaccrual loans
Industrial CRE
Arizona $ 374 $ 33 $ 407 13.8 % $ -
California 730 189 919 31.1 -
Colorado 58 1 59 2.0 -
Nevada 241 108 349 11.8 -
Texas 453 42 495 16.8 -
Utah/Idaho 350 83 433 14.7 -
Washington/Oregon 201 36 237 8.0 -
Other 1
55 - 55 1.8 -
Total industrial CRE $ 2,462 $ 492 $ 2,954 100.0 % $ -
1 Other included $31 million of industrial loans with collateral located in Virginia at both September 30, 2025 and December 31, 2024.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Office CRE
At September 30, 2025 and December 31, 2024, our office CRE loan portfolio totaled $1.7 billion and $1.8 billion, respectively, representing 13% of the total CRE loan portfolio for both periods. Approximately 28% of the office CRE loan portfolio is scheduled to mature in the next 12 months. We believe that substantially all of these borrowers will be able to refinance at maturity through the Bank or other lenders, due to the cash flows from the properties, acceptable LTVs, equity levels, and guarantor support.
The following schedule presents the composition of our office CRE loan portfolio and other related credit quality metrics:
OFFICE CRE LOAN PORTFOLIO
(Dollar amounts in millions) September 30, 2025 December 31, 2024
Office CRE
Term $ 1,689 $ 1,697
Construction and land development 19 115
Total office CRE $ 1,708 $ 1,812
Credit quality metrics
Criticized loan ratio 13.6 % 14.5 %
Classified loan ratio 13.5 % 12.8 %
Nonaccrual loan ratio 3.6 % 2.8 %
Delinquency ratio 2.3 % 1.4 %
Annualized ratio of office CRE net charge-offs (recoveries) to average loans 0.6 % 0.3 %
Ratio of allowance for credit losses to office CRE loans, at period end 3.22 % 3.92 %
Weighted average LTV for office term CRE loans 58 % 56 %
The following schedules present our office CRE loan portfolio, categorized by collateral location for the periods presented:
OFFICE CRE LOAN PORTFOLIO BY COLLATERAL LOCATION
September 30, 2025
Loan Type
(Dollar amounts in millions) Term Construction and land development Total % of
total 		Nonaccrual loans
Office CRE
Arizona $ 263 $ - $ 263 15.4 % $ -
California 297 5 302 17.7 45
Colorado 57 - 57 3.3 16
Nevada 87 - 87 5.1 -
Texas 173 - 173 10.1 -
Utah/Idaho 477 14 491 28.8 -
Washington/Oregon 325 - 325 19.0 -
Other 10 - 10 0.6 -
Total office CRE $ 1,689 $ 19 $ 1,708 100.0 % $ 61
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
December 31, 2024
Loan Type
(Dollar amounts in millions) Term Construction and land development Total % of
total 		Nonaccrual loans
Office CRE
Arizona $ 255 $ - $ 255 14.1 % $ -
California 328 38 366 20.2 49
Colorado 58 - 58 3.2 -
Nevada 77 11 88 4.9 -
Texas 186 7 193 10.6 1
Utah/Idaho 482 34 516 28.5 -
Washington/Oregon 283 25 308 17.0 -
Other 28 - 28 1.5 -
Total office CRE $ 1,697 $ 115 $ 1,812 100.0 % $ 50
Consumer Lending
The following schedule presents the composition of our consumer lending portfolio:
CONSUMER LENDING PORTFOLIO
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of total
consumer loans 		Amount % of total
consumer loans 		Amount change Percent change
Consumer:
1-4 family residential $ 10,423 66.6 % $ 9,939 66.4 % $ 484 4.9 %
Home equity credit line 3,848 24.6 3,641 24.3 207 5.7
Construction and other consumer real estate 769 4.9 810 5.4 (41) (5.1)
Bankcard and other revolving plans 477 3.0 457 3.1 20 4.4
Other 129 0.9 121 0.8 8 6.6
Total consumer $ 15,646 100.0 % $ 14,968 100.0 % $ 678 4.5
1-4 Family Residential Mortgages
We originate first-lien residential home mortgage loans considered to be of prime quality. At September 30, 2025, our 1-4 family residential mortgage loan portfolio totaled $10.4 billion, representing 67% of our total consumer loan portfolio, compared with $9.9 billion, or 66%, at December 31, 2024. The increase was partly due to the acquisition of consumer loans associated with the purchase of four FirstBank Coachella Valley, California branches in late March 2025.
At September 30, 2025 and December 31, 2024, approximately 89% and 90%, respectively, of our 1-4 family residential mortgage loan portfolio consisted of variable-rate loans. We generally retain variable-rate loans in our loan portfolio and sell conforming fixed-rate loans to third parties, including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. In connection with these sales, we provide customary representations and warranties affirming that the loans satisfy specified underwriting standards and collateral documentation requirements.
Home Equity Credit Lines
We also originate home equity credit lines ("HECLs"). At September 30, 2025 and December 31, 2024, our HECL portfolio totaled $3.8 billion and $3.6 billion, respectively. Approximately 34% and 37% of our HECLs were secured by first liens for the same respective time periods.
At September 30, 2025, loans representing less than 1% of the outstanding balance in the HECL portfolio were estimated to have combined loan-to-value ("CLTV") ratios above 100%. An estimated CLTV ratio is the ratio of our loan plus any prior lien amounts divided by the estimated current collateral value. At origination, underwriting standards for the HECL portfolio generally include a maximum 80% CLTV with a Fair Isaac Corporation ("FICO") credit score greater than 700.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
At September 30, 2025, approximately 93% of our HECL portfolio was still in the draw period, and about 22% of those loans were scheduled to begin amortizing within the next five years. We believe the risk of loss and borrower default in the event of a loan becoming fully amortizing and the effect of significant interest rate changes is low, given the rate shock analysis performed at origination. The ratio of HECL net charge-offs (recoveries) for the trailing twelve months to average balances at September 30, 2025 and December 31, 2024, was 0.01% and 0.00%, respectively. For additional information on the credit quality of our HECL portfolio, see Note 6 of the Notes to Consolidated Financial Statements.
The following schedule presents the geographic distribution of our consumer lending portfolio, based on the location of the primary borrower.
CONSUMER LENDING BY GEOGRAPHY
September 30, 2025 December 31, 2024
(Dollar amounts in millions) Amount % of
total 		Nonaccrual loans Amount % of
total 		Nonaccrual loans
Consumer
Arizona $ 1,433 9.2 % $ 7 $ 1,365 9.1 % $ 5
California 3,563 22.8 15 3,159 21.1 14
Colorado 1,393 8.9 12 1,353 9.1 7
Nevada 1,349 8.6 12 1,328 8.9 10
Texas 3,655 23.4 25 3,657 24.4 25
Utah/Idaho 3,521 22.5 17 3,430 22.9 14
Washington/Oregon 297 1.9 4 237 1.6 -
Other 435 2.7 3 439 2.9 5
Total consumer $ 15,646 100.0 % $ 95 $ 14,968 100.0 % $ 80
Credit Quality
We monitor credit quality by analyzing various factors, including nonperforming status, internal risk grades, and net charge-offs, all of which are used in our overall evaluation of the adequacy of our ACL. For more information on these factors and the ACL, see Note 6 of the Notes to Consolidated Financial Statements.
Nonperforming Assets
Nonperforming assets include nonaccrual loans and other real estate owned ("OREO"), or foreclosed properties. The following schedule presents the composition of our nonperforming assets:
NONPERFORMING ASSETS
(Dollar amounts in millions) September 30,
2025 		December 31,
2024
Nonaccrual loans 1
$ 319 $ 297
Other real estate owned 2
5 1
Total nonperforming assets $ 324 $ 298
Ratio of nonperforming assets to net loans and leases1and other real estate owned 2
0.54 % 0.50 %
Accruing loans past due 90 days or more $ 5 $ 18
Ratio of accruing loans past due 90 days or more to loans and leases 1
0.01 % 0.03 %
Nonaccrual loans1and accruing loans past due 90 days or more
$ 324 $ 315
Ratio of nonperforming assets1and accruing loans past due 90 days or more to loans and leases1and other real estate owned 2
0.54 % 0.53 %
Accruing loans past due 30-89 days $ 69 $ 57
Ratio of nonaccrual loans1current as to principal and interest payments
54.2 % 61.7 %
1 Includes loans held for sale.
2Does not include banking premises held for sale.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Nonperforming assets totaled $324 million, or 0.54% of total loans and leases and other real estate owned at September 30, 2025, compared with $298 million, or 0.50%, at December 31, 2024. For more information about nonaccrual loans, see Note 6 of the Notes to Consolidated Financial Statements.
Classified Loans
Classified loans are considered loans with well-defined weaknesses and are assigned using our internal risk grade definitions of substandard and doubtful, which are consistent with regulatory risk classifications. The following schedule presents our classified loans by loan segment:
CLASSIFIED LOANS
(Dollar amounts in millions) September 30,
2025 		December 31,
2024
Commercial
$ 971 $ 1,130
Commercial real estate 1,337 1,651
Consumer 107 89
Total classified loans $ 2,415 $ 2,870
Ratio of classified loans to total loans and leases 4.00 % 4.83 %
Classified loans totaled $2.4 billion and decreased $455 million when compared with December 31, 2024. Approximately 55% of our classified loans are in the CRE loan portfolio. The loss content of our CRE loan portfolio continues to be mitigated by strong underwriting, supported by significant borrower equity and guarantor support, resulting in relatively stable CRE nonperforming assets and low net loan charge-offs.
Allowance for Credit Losses
The ACL, which consists of the ALLL and the RULC, represents our estimate of current expected credit losses related to the loan and lease portfolio and unfunded lending commitments as of the balance sheet date.
We estimate current expected credit losses by incorporating historical credit loss experience, prevailing economic conditions, and economic forecasts, which collectively inform the quantitative component of our ACL. Additionally, we consider qualitative and environmental factors that may indicate actual losses could differ from levels estimated by our quantitative models. The impact of these factors on our ACL may vary from quarter to quarter. Because economic forecasts may not always align with observed credit quality trends, changes in the ACL may not necessarily correspond directionally with changes in credit quality.
During the first nine months of 2025, the qualitative portion of the ACL decreased primarily due to a reduction in CRE portfolio-specific risks. This led us to assign lesser weight to stressed economic assumptions for the CRE portfolio.
For additional information on the ACL and credit trends experienced in each portfolio segment, see "The Allowance and Provision for Credit Losses" section on page 13 and Note 6 of the Notes to Consolidated Financial Statements.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
The following schedule presents the components of the ACL and credit-related balances and metrics:
ACL AND CREDIT-RELATED BALANCES AND METRICS
(Dollar amounts in millions) Nine Months Ended
September 30, 2025 		Twelve Months Ended
December 31, 2024 		Nine Months Ended
September 30, 2024
Loans and leases outstanding $ 60,302 $ 59,410 $ 58,884
Average loans and leases outstanding:
Commercial 31,327 30,671 30,553
Commercial real estate 13,593 13,532 13,538
Consumer 15,378 14,344 14,198
Total average loans and leases outstanding $ 60,298 $ 58,547 $ 58,289
Allowance for loan and lease losses:
Balance at beginning of period $ 696 $ 684 $ 684
Provision for loan losses 65 72 34
Charge-offs:
Commercial 92 68 30
Commercial real estate 4 11 11
Consumer 11 12 9
Total 107 91 50
Recoveries:
Commercial 21 23 19
Commercial real estate 1 3 3
Consumer 3 5 4
Total 25 31 26
Net loan and lease charge-offs 82 60 24
Balance at end of period $ 679 $ 696 $ 694
Reserve for unfunded lending commitments:
Balance at beginning of period $ 45 $ 45 $ 45
Provision for unfunded lending commitments 1 - (3)
Balance at end of period $ 46 $ 45 $ 42
Total allowance for credit losses:
Allowance for loan and lease losses $ 679 $ 696 $ 694
Reserve for unfunded lending commitments 46 45 42
Total allowance for credit losses $ 725 $ 741 $ 736
Ratio of allowance for credit losses to net loans and leases, at period end 1.20 % 1.25 % 1.25 %
Ratio of allowance for credit losses to nonaccrual loans, at period end 227 % 249 % 203 %
Ratio of allowance for credit losses to nonaccrual loans and accruing loans past due 90 days or more, at period end 224 % 235 % 199 %
Ratio of total net charge-offs to average loans and leases 1
0.18 % 0.10 % 0.05 %
Ratio of commercial net charge-offs to average commercial loans 1
0.30 % 0.15 % 0.05 %
Ratio of commercial real estate net charge-offs to average commercial real estate loans 1
0.03 % 0.06 % 0.08 %
Ratio of consumer net charge-offs to average consumer loans 1
0.07 % 0.05 % 0.05 %
1 Ratios are annualized for the periods presented, except for the period representing the full twelve months.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Interest Rate and Market Risk Management
Interest rate and market risk refer to the potential for adverse impacts on current or future earnings and capital arising from changes in interest rates and other market conditions. Given our involvement in transactions with a broad range of financial instruments, we are inherently exposed to these risks. For more information regarding our interest rate and market risk management practices, see "Interest Rate and Market Risk Management" in our 2024Form 10-K.
We actively manage our exposure to interest rate fluctuations by positioning the balance sheet to reduce volatility in both net interest income and the economic value of equity ("EVE"). Given that a significant portion of our balance sheet funding is derived from non-maturity deposit products, we rely on behavioral models and assumptions to forecast the sensitivity of earnings to interest rate movements. These models and assumptions are subject to ongoing performance monitoring.
When observed deposit behavior diverges from model expectations, the models are updated accordingly, with greater emphasis placed on recently observed behavior. All model changes are independently reviewed by our Model Risk Management function.
Our deposit-behavior models incorporate assumptions about the correlation between the rates paid on interest-bearing deposits and fluctuations in average benchmark interest rates. This is commonly referred to as "deposit beta." Certificates of deposit are typically modeled with a higher degree of correlation, whereas interest-bearing checking accounts are assumed to exhibit a lower sensitivity to rate changes.
Many consumer and business deposit accounts have historically demonstrated stability and limited sensitivity to rate changes, resulting in a longer duration relative to our loan portfolio. As a result, our balance sheet has typically been "asset-sensitive," meaning that assets are expected to reprice more quickly or more significantly than our liabilities. Measures of asset sensitivity are particularly influenced by changes in deposit modeling assumptions.
To manage interest rate risk, we regularly employ a combination of interest rate swaps, investments in fixed-rate securities, and funding strategies. Collectively, these tools help moderate the expected sensitivity of net interest income and EVE to changes in interest rates.
The following schedule presents deposit duration assumptions discussed previously:
DEPOSIT ASSUMPTIONS
September 30, 2025 December 31, 2024
Product Effective duration
(-200 bps) 		Effective duration (unchanged) Effective duration
(+200 bps) 		Effective duration
(-200 bps) 		Effective duration (unchanged) Effective duration
(+200 bps)
Demand deposits 4.5% 3.8% 3.3% 4.2% 3.5% 2.9%
Money market 2.1% 1.6% 1.4% 1.9% 1.6% 1.4%
Savings and interest-bearing checking 2.2% 1.8% 1.7% 2.1% 1.8% 1.6%
As previously discussed, we utilize derivative instruments to manage interest rate risk. The following schedule presents derivatives designated in qualifying hedging relationships at September 30, 2025. It includes the average outstanding derivative notional amounts for each reporting period presented and the weighted-average fixed rates paid or received across cash flow and fair value hedge categories. For more information regarding our hedge accounting strategies and the impact of these hedging relationships on interest income and expense, see Note 7 of the Notes to Consolidated Financial Statements.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
DERIVATIVES DESIGNATED IN QUALIFYING HEDGING RELATIONSHIPS
2025 2026 2027 4Q27 - 3Q28 4Q28 - 3Q29
(Dollar amounts in millions) Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter
Cash flow hedges
Cash flow hedges of assets 1
Average outstanding notional $ 1,199 $ 1,034 $ 1,000 $ 1,000 $ 1,000 $ 934 $ 778 $ 598 $ 342 $ 145
Weighted-average fixed-rate received 3.04 % 3.10 % 3.15 % 3.15 % 3.15 % 3.25 % 3.28 % 3.21 % 3.83 % 3.82 %
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Fair value hedges
Fair value hedges of debt 2
Average outstanding notional $ 1,000 $ 1,000 $ 814 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 441
Weighted-average fixed-rate received 2.30 % 2.30 % 2.72 % 3.93 % 3.93 % 3.93 % 3.93 % 3.93 % 3.93 % 3.93 %
Fair value hedges of assets 3
Average outstanding notional $ 5,478 $ 5,471 $ 5,455 $ 4,625 $ 3,393 $ 2,224 $ 1,796 $ 1,644 $ 1,517 $ 1,338
Weighted-average fixed-rate paid 3.76 % 3.76 % 3.61 % 3.26 % 3.10 % 2.90 % 2.76 % 2.70 % 2.65 % 2.75 %
1 Cash flow hedges of assets consist of receive-fixed swaps hedging pools of floating-rate loans.
2 Fair value debt hedges consist of receive-fixed swaps that hedge fixed-rate subordinated and senior debts.
3 Fair value asset hedges consist of pay-fixed swaps that hedge fixed-rate AFS securities and fixed-rate commercial loans.
At September 30, 2025, we had $48 million of net losses deferred in accumulated other comprehensive income ("AOCI") related to terminated cash flow hedges. These deferred amounts are amortized into interest income on a straight-line basis over the original maturity periods of the respective hedges, provided the forecasted transactions are expected to occur. For more information regarding amounts deferred in AOCI from terminated cash flow hedges, see "Interest Rate and Market Risk Management" in our 2024 Form 10-K.
Earnings at Risk (EaR) and Economic Value of Equity (EVE)
Incorporating our deposit assumptions and the impact of derivatives designated in qualifying hedging relationships, the following schedule presents our earnings at risk ("EaR"), defined as the percentage change in projected 12-month net interest income, and the estimated percentage change in EVE. Both EaR and EVE are based on a static balance sheet and reflect instantaneous, parallel shifts in interest rates ranging from -200 to +200 bps. These metrics are intended to illustrate the sensitivity of net interest income and equity value to changes in interest rates across a range of scenarios and should not be interpreted as forecasts of expected net interest income.
INCOME SIMULATION - CHANGE IN NET INTEREST INCOME AND CHANGE IN ECONOMIC VALUE OF EQUITY
September 30, 2025 December 31, 2024
Parallel shift in rates (in bps)
Parallel shift in rates (in bps)
Repricing scenario -200 -100 0 +100 +200 -200 -100 0 +100 +200
Earnings at Risk
(EaR)
(9.7) % (4.9) % - % 4.9 % 9.7 % (8.9) % (4.5) % - % 4.4 % 8.7 %
Economic Value of Equity
(EVE)
(1.2) % (0.2) % - % (0.8) % (2.1) % 0.1 % 0.6 % - % (1.7) % (3.6) %
Asset sensitivity, as measured by EaR, increased during the first nine months of 2025, primarily due to shifts in the composition of deposit balances. Under current deposit assumptions, interest rate risk remains within established policy limits. For interest-bearing deposits with indeterminable maturities, the weighted average modeled beta was 50%.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Prepayment assumptions play a critical role in the management of interest rate risk. Certain assets within our portfolio, such as 1-4 family residential mortgages and mortgage-backed securities, are subject to borrower-driven prepayments, which can significantly affect projected cash flows. At September 30, 2025 and December 31, 2024, estimated lifetime prepayment speeds for loans were 15.2% and 13.7%, respectively, reflecting a decline in mortgage rates. For mortgage-backed securities, estimated prepayment speeds were 7.1% and 7.0% for the same respective periods.
Our EaR analysis primarily evaluates the impact of parallel rate shocks across the term structure of benchmark interest rates. Additionally, we perform non-parallel rate shock scenarios to identify potential risks that may not be captured under parallel rate assumptions. In these non-parallel rate scenarios, the most significant effects on EaR typically stem from movements in short-term interest rates.
EaR has inherent limitations in capturing anticipated changes in net interest income in changing interest rate environments, primarily due to timing mismatches in the repricing behavior of assets and liabilities. To address this, we provide measures of "latent" and "emergent" interest rate sensitivity, which compare current-quarter net interest income with projected net interest income for the same quarter one year forward. Unlike EaR, which assesses net interest income variability over a 12-month horizon, latent and emergent sensitivity metrics provide additional insight into near-term earnings dynamics amid changing rate conditions. As previously noted, these measures are intended to illustrate the sensitivity of net interest income and equity value to changes in interest rates across a range of scenarios and should not be interpreted as forecasts of expected net interest income.
Latent interest rate sensitivity captures anticipated changes in net interest income driven by prior interest rate movements that have not yet been fully reflected in current revenue but are expected to materialize in the near term assuming no changes in interest rates and a static balance sheet. Latent sensitivity is projected to increase net interest income by approximately 8.0% in the third quarter of 2026, compared with the third quarter of 2025.
Emergent interest rate sensitivity reflects the projected incremental changes in net interest income resulting from future interest rate movements, measured relative to the latent level of net interest income. Assuming interest rates follow the forward curve as of September 30, 2025, emergent sensitivity is modeled to reduce net interest income by approximately 6.6% from the latent level, yielding a cumulative increase of 1.4% in net interest income in the third quarter of 2026, relative to the third quarter of 2025. Under a parallel interest rate shock of +/- 100 bps to the implied forward rate path, cumulative net interest income sensitivity is projected to range between -1.9% and 4.7%.
Our strategic focus on business banking plays a significant role in our asset-liability management approach. At September 30, 2025, $28.8 billion of commercial and CRE loans were scheduled to reprice within the next six months. To manage the interest rate exposure associated with these variable-rate loans, we had $1.3 billion in notional of receive-fixed swaps designated as cash flow hedges. Additionally, at September 30, 2025, $4.4 billion in variable-rate consumer loans were also scheduled to reprice within the same period. The impact of interest rate floors on asset sensitivity for both commercial and consumer loan portfolios is currently insignificant in the higher interest rate environment. For additional information regarding derivative instruments, see Notes 3 and 7 of the Notes to Consolidated Financial Statements.
Fixed Income
We are subject to market risk arising from fluctuations in the fair value of financial instruments, including trading securities and interest rate swaps used to hedge interest rate exposure. Our underwriting activities include municipal and corporate securities, and we actively trade in municipal, agency, and U.S. Treasury securities. These activities expose us to potential losses resulting from adverse price movements in fixed-income markets.
Changes in the fair value of AFS securities and interest rate swaps that qualify as cash flow hedges are recognized in AOCI each reporting period. For additional information on investment securities and AOCI, refer to the "Capital Management" section on page 39. For more information on the accounting treatment of investment securities, see Note 5 of the Notes to Consolidated Financial Statements.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Equity Investments
Through our equity investment activities, we hold both publicly traded equity securities and non-marketable equity securities in governmental entities and institutions, such as the FRB and the FHLB. For more information regarding our equity investments, see "Interest Rate and Market Risk Management" in our 2024 Form 10-K.
We hold investments primarily in pre-public companies, largely through a variety of SBIC funds. This investment strategy is designed to support the financing, growth, and expansion of diverse businesses, generally within our geographic footprint. At September 30, 2025 and December 31, 2024, our equity exposure to these investments totaled approximately $252 million and $204 million, respectively.
From time to time, companies within our SBIC portfolio may complete an IPO, which introduces additional market risk due to post-IPO lock-up restrictions. During the second quarter of 2025, one of our SBIC investments, FatPipe, Inc., successfully completed an IPO. This investment will be marked-to-market until our shares, which are subject to a minimum 180-day lock-up period from the IPO, are fully divested. For more information regarding the valuation of our SBIC investments, see Note 3 of the Notes to Consolidated Financial Statements.
Liquidity Risk Management
Liquidity refers to our ability to meet cash, contractual, and collateral obligations while effectively managing both anticipated and unanticipated cash flow requirements without negatively impacting our operations or financial strength. We manage liquidity to provide funding for customer credit needs, financial and contractual commitments, and other corporate activities. Our primary sources of liquidity include deposits, borrowings, equity, and the repayment or sale of assets such as loans and investment securities. Investment securities are primarily held as a source of contingent liquidity and are generally comprised of instruments that can be readily converted to cash through secured borrowing arrangements, with the securities pledged as collateral. For more information on our liquidity risk management practices, see "Liquidity Risk Management" in our 2024 Form 10-K.
For the first nine months of 2025, the primary sources of cash included a decrease in investment securities, a decrease in money market investments, and net cash provided by operating activities. The primary uses of cash during the same period included a decrease in deposits, an increase in loans and leases, and dividends paid on common and preferred stock. Cash payments for interest, reflected in operating expenses, totaled $1.2 billion and $1.4 billion for the first nine months of 2025 and 2024, respectively.
The FHLB and FRB continue to serve as key sources of contingent liquidity and funding. As a member of the FHLB of Des Moines, we have the ability to borrow against eligible loans and securities to meet liquidity and funding requirements. To maintain our borrowing capacity, we are required to maintain investments in both FHLB and FRB stock. At September 30, 2025, our total investment in FHLB and FRB stock was $145 million and $54 million, respectively, compared with $124 million and $65 million at December 31, 2024.
At September 30, 2025, loans with a carrying value of $25.0 billion and $17.6 billion were pledged at the FHLB and FRB, respectively, as collateral for current and potential borrowings, compared with $23.4 billion and $17.0 billion at December 31, 2024.
At September 30, 2025 and December 31, 2024, investment securities with carrying values of $17.4 billion and $17.9 billion, respectively, were pledged as collateral to support potential borrowings. These pledged securities included $8.5 billion and $8.7 billion, respectively, designated for available use through the Fixed Income Clearing Corporation's General Collateral Finance ("GCF") program and other repo programs; $4.5 billion and $4.7 billion pledged to the FRB and FHLB; and $4.4 billion and $4.5 billion pledged to secure public and trust deposits, advances, and other collateralized obligations.
A significant portion of these pledged assets are unencumbered, but are pledged to provide immediate access to contingency sources of funds. The following schedule presents our total available liquidity, including unused collateralized borrowing capacity:
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
AVAILABLE LIQUIDITY
September 30, 2025 December 31, 2024
(Dollar amounts in billions) FHLB
FRB 1
GCF 2
Total FHLB
FRB 1
GCF 2
Total
Total borrowing capacity $ 15.5 $ 18.1 $ 8.6 $ 42.2 $ 14.6 $ 17.7 $ 8.6 $ 40.9
Borrowings outstanding 3.0 - - 3.0 2.6 - 0.3 2.9
Remaining capacity, at period end $ 12.5 $ 18.1 $ 8.6 $ 39.2 $ 12.0 $ 17.7 $ 8.3 $ 38.0
Cash and due from banks $ 0.8 $ 0.7
Interest-bearing deposits 3
2.4 2.9
Total available liquidity $ 42.4 $ 41.6
Ratio of available liquidity to uninsured deposits 126% 121%
1 Represents borrowing capacity and borrowings outstanding at the Federal Reserve Bank discount window.
2Includes $852 million and $915 million pledged for available use through other repo programs for the periods presented.
3Represents funds deposited by the Bank primarily at the Federal Reserve Bank.
At September 30, 2025, our total available liquidity was $42.4 billion, compared with $41.6 billion at December 31, 2024. At September 30, 2025, our sources of liquidity exceeded the estimated amount of uninsured deposits of $33.6 billion without the need to sell any investment securities.
Credit Ratings
General financial market and economic conditions affect our access to, and the cost of, external financing. Our ability to access funding markets is also directly influenced by the credit ratings assigned to us by various rating agencies. These ratings not only impact the costs associated with borrowings, but also influence the sources from which we can borrow. All credit rating agencies currently rate our debt at an investment-grade level.
The following schedule presents our credit ratings:
CREDIT RATINGS
as of October 31, 2025:
Rating agency Outlook Long-term issuer/senior
debt rating 		Subordinated debt rating Short-term debt rating
Kroll Stable A- BBB+ K2
S&P Negative BBB+ BBB NR
Fitch Stable BBB+ BBB F2
Moody's Stable Baa2 NR P2
Capital Management
A strong capital position is essential to achieve our key corporate objectives, ensure continued profitability, and foster depositor and investor confidence. We strive to (1) maintain sufficient capital to support the current needs and growth of our businesses, consistent with our assessment of their potential to create value for shareholders, and (2) fulfill our responsibilities to depositors and bondholders while managing capital distributions to shareholders through dividends and common stock repurchases.
We utilize stress testing as an important tool to inform our decisions on the appropriate level of capital to maintain, based on hypothetically stressed economic conditions, including the FRB's supervisory severely adverse scenario. The timing and amount of capital actions depend on various factors, including our financial performance, business needs, prevailing and anticipated economic conditions, and the results of our internal stress testing, as well as approval from the Board of Directors ("Board") and the Office of the Comptroller of the Currency ("OCC"). Shares may be repurchased occasionally in the open market or through privately negotiated transactions. For a more comprehensive discussion of our capital risk management, see "Capital Management" in our 2024 Form 10-K.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
SHAREHOLDERS' EQUITY
(Dollar amounts in millions) September 30,
2025 		December 31,
2024 		Amount change Percent change
Shareholders' equity:
Preferred stock
$ 66 $ 66 $ - - %
Common stock and additional paid-in capital
1,721 1,737 (16) (1)
Retained earnings
7,134 6,701 433 6
Accumulated other comprehensive loss (2,056) (2,380) 324 14
Total shareholders' equity $ 6,865 $ 6,124 $ 741 12
Total shareholders' equity increased $741 million, or 12%, to $6.9 billion at September 30, 2025, compared with $6.1 billion at December 31, 2024. Common stock and additional paid-in capital decreased $16 million, primarily due to common stock repurchases. During the first quarter of 2025, we repurchased 0.8 million common shares outstanding for $41 million, which includes common shares acquired through our publicly announced plans and those acquired in connection with our stock compensation plan.
At September 30, 2025, the AOCI balance reflected a net loss of $2.1 billion, primarily attributable to a decline in the fair value of fixed-rate AFS securities driven by changes in interest rates. This amount includes $1.7 billion ($1.2 billion after tax) of unrealized losses associated with securities previously transferred from AFS to held-to-maturity ("HTM"). Compared with December 31, 2024, AOCI improved $324 million, primarily due to $142 million related to paydowns on AFS securities, and $137 million in unrealized loss amortization associated with the securities transferred from AFS to HTM. Additionally, AOCI was impacted by a $45 million decrease in unrealized losses and other adjustments associated with derivative instruments used for risk management purposes. The improvement in AOCI had a positive impact on our tangible book value per common share. We use pay-fixed, receive-floating interest rate swaps designated as hedges of our AFS securities to reduce the volatility of our AOCI balance. For more information about these swaps, see Note 7 of the Notes to Consolidated Financial Statements.
Absent any sales or credit impairment of the AFS securities, the unrealized losses will not be recognized in earnings. We do not intend to sell any securities with unrealized losses. Although changes in AOCI are reflected in shareholders' equity, they are currently excluded from regulatory capital, and therefore do not impact our regulatory ratios. For more information on our investment securities portfolio and related unrealized gains and losses, see Note 5 of the Notes to Consolidated Financial Statements.
CAPITAL DISTRIBUTIONS
Three Months Ended
September 30, 		Nine Months Ended
September 30,
(In millions, except share amounts) 2025 2024 2025 2024
Capital distributions:
Preferred dividends paid $ 1 $ 10 $ 3 $ 31
Total capital distributed to preferred shareholders 1 10 3 31
Common dividends paid 67 61 196 184
Bank common stock repurchased 1
- - 41 35
Total capital distributed to common shareholders 67 61 237 219
Total capital distributed to preferred and common shareholders $ 68 $ 71 $ 240 $ 250
Weighted average diluted common shares outstanding (in thousands)
147,125 147,150 147,175 147,202
Common shares outstanding, at period end (in thousands) 147,640 147,699 147,640 147,699
1 Includes amounts related to common shares acquired through our publicly announced plans and those acquired in connection with our stock compensation plan. These shares were acquired from employees to cover their payroll taxes and stock option exercise costs upon the exercise of stock options.
Pursuant to the OCC's "Earnings Limitation Rule," dividend payments are limited to the sum of net income for the current fiscal year and retained earnings for the two preceding years, unless prior approval is obtained from the
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
OCC to exceed this threshold. As of October 1, 2025, we had $1.3 billion in retained net profits available for distribution.
During the third quarter of 2025, we paid $1 million in dividends on preferred stock, compared with $10 million during the same prior year period. The decrease was due to the full redemption of the outstanding shares of our Series G, I, and J preferred stock in the fourth quarter of 2024.
During the third quarter of 2025, we paid $67 million in dividends on common stock, or $0.45 per share, compared with $61 million, or $0.41 per share, during the third quarter of 2024. In October 2025, the Board declared a quarterly dividend of $0.45 per common share, payable on November 20, 2025 to shareholders of record at the close of business on November 13, 2025. For additional information about our capital management actions, see Note 9 of the Notes to Consolidated Financial Statements.
Basel III
We are subject to Basel III capital requirements, which include certain minimum regulatory capital ratios. At September 30, 2025, we exceeded all capital adequacy requirements under the Basel III capital rules. Based on our internal stress testing and other assessments of capital adequacy, we believe our capital levels sufficiently exceed both internal and regulatory requirements for well-capitalized banks. For more information about our compliance with the Basel III capital requirements, see "Supervision and Regulation" and Note 15 of our 2024 Form 10-K.
The following schedule presents our capital amounts, capital ratios, and other selected performance ratios:
CAPITAL AMOUNTS AND RATIOS
(Dollar amounts in millions) September 30,
2025 		December 31,
2024 		September 30,
2024
Basel III risk-based capital amounts:
Common equity tier 1 capital $ 7,734 $ 7,363 $ 7,206
Tier 1 risk-based 7,800 7,430 7,646
Total risk-based 9,404 9,026 8,890
Risk-weighted assets 68,648 67,685 67,305
Basel III risk-based capital ratios:
Common equity tier 1 capital ratio 11.3 % 10.9 % 10.7 %
Tier 1 risk-based ratio 11.4 % 11.0 % 11.4 %
Total risk-based ratio 13.7 % 13.3 % 13.2 %
Tier 1 leverage ratio 8.8 % 8.3 % 8.6 %
Other ratios:
Average equity to average assets (three months ended) 7.5 % 7.2 % 6.9 %
Return on average common equity (three months ended) 13.3 % 13.2 % 14.1 %
Return on average tangible common equity (three months ended) 1
16.0 % 16.0 % 17.4 %
Tangible equity ratio 1
6.6 % 5.8 % 6.2 %
Tangible common equity ratio 1
6.5 % 5.7 % 5.7 %
1 See "Non-GAAP Financial Measures" on page 41 for more information regarding these ratios.
At September 30, 2025, our common equity tier 1 ("CET1") capital totaled $7.7 billion, an increase of 7%, compared with $7.2 billion in the prior year period. The CET1 capital ratio improved to 11.3%, compared with 10.7%. Tangible book value per common share increased $5.52, or 17%, to $38.64, mainly due to an increase in retained earnings and reduced unrealized losses in AOCI. See the section below for more information regarding non-GAAP financial measures.
NON-GAAP FINANCIAL MEASURES
This Form 10-Q presents non-GAAP financial measures, in addition to generally accepted accounting principles ("GAAP") financial measures. The adjustments to reconcile from the applicable GAAP financial measures to the non-GAAP financial measures are presented in the following schedules. We consider these adjustments to be relevant to ongoing operating results and provide a meaningful basis for period-to-period comparisons. We use
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
these non-GAAP financial measures to assess our performance and financial position. We believe that presenting these non-GAAP financial measures allows investors to assess our performance on the same basis as that applied by our management and the financial services industry.
Non-GAAP financial measures have inherent limitations and are not necessarily comparable to similar financial measures that may be presented by other financial services companies. Although non-GAAP financial measures are frequently used by stakeholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
Tangible Common Equity and Related Measures
Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets and their related amortization. We believe these non-GAAP measures provide useful information about our use of shareholders' equity and provide a basis for evaluating the performance of a business more consistently, whether acquired or developed internally.
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (NON-GAAP)
Three Months Ended
(Dollar amounts in millions) September 30,
2025 		June 30,
2025 		September 30,
2024
Net earnings applicable to common shareholders (GAAP)
$ 221 $ 243 $ 204
Adjustment, net of tax:
Amortization of core deposit and other intangibles 2 2 1
Net earnings applicable to common shareholders, net of tax
(a) $ 223 $ 245 $ 205
Average common equity (GAAP) $ 6,616 $ 6,357 $ 5,738
Average goodwill and intangibles (1,095) (1,097) (1,054)
Average tangible common equity (non-GAAP) (b) $ 5,521 $ 5,260 $ 4,684
Number of days in quarter (c) 92 91 92
Number of days in year (d) 365 365 366
Return on average tangible common equity (non-GAAP) 1
(a/b/c)*d 16.0 % 18.7 % 17.4 %
1Excluding the effect of AOCI from average tangible common equity would result in associated returns of 11.5%, 13.1%, and 11.4% for the periods presented, respectively.
TANGIBLE EQUITY RATIO, TANGIBLE COMMON EQUITY RATIO, AND TANGIBLE BOOK VALUE PER COMMON SHARE (ALL NON-GAAP MEASURES)
(Dollar amounts in millions, except shares and per share amounts) September 30,
2025 		June 30,
2025 		September 30,
2024
Total shareholders' equity (GAAP) $ 6,865 $ 6,596 $ 6,385
Goodwill and intangibles (1,094) (1,096) (1,053)
Tangible equity (non-GAAP) (a) 5,771 5,500 5,332
Preferred stock (66) (66) (440)
Tangible common equity (non-GAAP) (b) $ 5,705 $ 5,434 $ 4,892
Total assets (GAAP) $ 88,533 $ 88,893 $ 87,032
Goodwill and intangibles (1,094) (1,096) (1,053)
Tangible assets (non-GAAP) (c) $ 87,439 $ 87,797 $ 85,979
Common shares outstanding (in thousands) (d) 147,640 147,603 147,699
Tangible equity ratio (non-GAAP) (a/c) 6.6 % 6.3 % 6.2 %
Tangible common equity ratio (non-GAAP) (b/c) 6.5 % 6.2 % 5.7 %
Tangible book value per common share (non-GAAP) (b/d) $ 38.64 $ 36.81 $ 33.12
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
Efficiency Ratio and Adjusted Pre-Provision Net Revenue
The efficiency ratio is a measure of operating expense relative to revenue. We believe the efficiency ratio provides useful information regarding the cost of generating revenue. We make adjustments to exclude certain items that are not generally expected to recur frequently, as identified in the subsequent schedule. We believe these adjustments allow for more consistent comparability across periods. Adjusted noninterest expense provides a measure as to how we are managing our expenses. Adjusted pre-provision net revenue enables management and others to assess our ability to generate capital. Taxable-equivalent net interest income allows us to assess the comparability of revenue arising from both taxable and tax-exempt sources.
EFFICIENCY RATIO (NON-GAAP) AND ADJUSTED PRE-PROVISION NET REVENUE (NON-GAAP)
Three Months Ended Nine Months Ended Year Ended
(Dollar amounts in millions) September 30,
2025 		June 30,
2025 		September 30,
2024 		September 30,
2025 		September 30,
2024 		December 31,
2024
Noninterest expense (GAAP) (a) $ 527 $ 527 $ 502 $ 1,592 $ 1,537 $ 2,046
Adjustments:
Severance costs
6 2 1 11 2 3
Other real estate expense, net
- - - - (1) (1)
Amortization of core deposit and other intangibles
2 2 2 6 5 7
SBIC investment success fee accrual 1 2 - 3 1 1
FDIC special assessment (2) - - (2) 14 11
Total adjustments
(b) 7 6 3 18 21 21
Adjusted noninterest expense (non-GAAP)
(c)=(a-b) $ 520 $ 521 $ 499 $ 1,574 $ 1,516 $ 2,025
Net interest income (GAAP) (d) $ 672 $ 648 $ 620 $ 1,944 $ 1,803 $ 2,430
Fully taxable-equivalent adjustments
(e) 11 13 12 35 33 45
Taxable-equivalent net interest income (non-GAAP)
(f)=(d+e) 683 661 632 1,979 1,836 2,475
Customer-related noninterest income (non-GAAP) (g) 163 164 158 485 463 639
Net credit valuation adjustment (CVA) 1
(h) (11) - (3) (11) (3) -
Adjusted customer-related noninterest income (non-GAAP)
(i)=(g-h) 174 164 161 496 466 639
Noncustomer-related noninterest income (GAAP)
(j) 26 26 14 65 44 61
Securities gains (losses), net
(k) 11 14 9 31 11 19
Adjusted noncustomer-related noninterest income (non-GAAP)
(l)=(j-k) 15 12 5 34 33 42
Combined income (non-GAAP) (m)=
(f+g+j) 		$ 872 $ 851 $ 804 $ 2,529 $ 2,343 $ 3,175
Adjusted taxable-equivalent revenue (non-GAAP)
(n)=
(f+i+l) 		872 837 798 2,509 2,335 3,156
Pre-provision net revenue (non-GAAP)
(m)-(a) $ 345 $ 324 $ 302 $ 937 $ 806 $ 1,129
Adjusted PPNR (non-GAAP) (n)-(c) 352 316 299 935 819 1,131
Efficiency ratio (non-GAAP) (c/n) 59.6 % 62.2 % 62.5 % 62.7 % 64.9 % 64.2 %
1 Effective the first quarter of 2025, capital markets fees and income included the net CVA, which was previously disclosed under noncustomer-related noninterest income as fair value and nonhedge derivative income.
ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
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