Zions Bancorporation NA Earnings Summary
Zions Bancorporation, N.A., a leading financial services company operating across 11 western states in the U.S., recently reported its third-quarter financial results for 2025. With a net earnings applicable to common shareholders amounting to $221 million, or $1.48 per diluted common share, Zions demonstrated a steady increase compared to $204 million, or $1.37 per share, in the third quarter of 2024. However, it reported a slight decrease from $243 million, or $1.63 per share, in the preceding quarter of 2025.
Zions Bancorporation NA Results
The table below highlights the critical financial metrics for the third quarter of 2025, contrasting these with the previous quarter and the same period last year.
| Financial Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|---|---|---|---|
| Net Earnings Applicable to Shareholders | $221 million | $243 million | $204 million |
| Earnings Per Share (EPS) | $1.48 | $1.63 | $1.37 |
The results reveal that while there was a quarter-over-quarter decline, Zions achieved significant year-over-year growth in both net earnings and earnings per share.
Revenue Breakdown
Zions Bancorporation's revenue performance was analyzed across its key segments, emphasizing net interest margin growth and customer-related noninterest income.
| Revenue Segment | YoY Growth | Key Performance Notes |
|---|---|---|
| Pre-Provision Net Revenue | +14% | Reflects core earnings strength |
| Net Interest Margin | +25 basis points | Enhanced earnings from interest-earning assets |
| Customer-Related Noninterest Income | +8% | Growth after adjusting for net credit valuation |
Analysis of Segment Performance
The Bank's pre-provision net revenue grew by an impressive 14% year-over-year, indicating a robust financial backbone despite sector challenges. The net interest margin increase of 25 basis points reflects a more efficient use of capital in interest-earning assets, enhancing overall profitability. Meanwhile, customer-related noninterest income saw an 8% rise, showcasing diversification and resilience in Zions' income streams, with a focus on maintaining customer-centric strategies.
Key Developments
One of the significant developments during the quarter was a $50 million charge-off linked to loans provided to two interrelated companies where discrepancies and misrepresentations were detected. This event led to a $10 million specific reserve against the remaining balance of these loans. Zions has initiated legal proceedings to recover debts from the loan guarantors. Despite this setback, the remaining net charge-offs were low, at $6 million, or 4 basis points of average loans on an annualized basis, underscoring the overall stability of the loan portfolio.
Comments from Company Officers
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, expressed satisfaction with the company's core earnings, highlighting the impressive growth figures in pre-provision net revenue and adjustments to noninterest income. Mr. Simmons also provided reassurance about handling the charge-offs with strict, proactive legal measures to minimize risks and protect shareholder value.
Dividends and Share Repurchases
Zions Bancorporation's approach to dividends and share repurchases reflects its dedication to returning capital to shareholders while maintaining a strong financial foundation for future growth. While this report does not specify recent changes to dividend or repurchase plans, Zions has historically shown a commitment to maintaining attractive shareholder returns.
Zions Bancorporation NA Stock Forecast
Given the current financial performance and strategic initiatives, the stock forecast for Zions Bancorporation shows potential for upside, despite recent challenges. The elevated net interest margin and solid year-over-year growth could support a bullish outlook. Assuming continued management effectiveness in navigating regulatory landscapes and market volatilities, the stock could project a high target of around $6.50 per share. Conversely, accounting for potential macroeconomic fluctuations and any additional unforeseen charge-offs, a conservative low-end projection could be approximately $4.50 per share.
In conclusion, Zions Bancorporation has showcased resilience and strategic prowess in managing its core businesses, indicating a solid foundation for sustainable profitability and future growth. The Bank's commitment to proactive legal recourse for charge-offs and a strategic focus on maximizing customer-related income signals stability and confidence in value creation for its shareholders.
