Zions Bancorporation (ZION) Q1 2025 earnings summary

Executive summary

• Net earnings for Q1 2025 were $169 million ($1.13 per share), up 18% year-over-year and driven by higher net interest and noninterest income, though down sequentially from Q4 2024.

• Net interest margin expanded to 3.10%, up from 2.94% year-over-year and 3.05% in the prior quarter.

• Adjusted pre-provision net revenue increased 10% year-over-year to $267 million, while noninterest income rose 10% to $171 million, led by loan-related and capital markets fees.

• Nonperforming assets and classified loans increased year-over-year, mainly in CRE and consumer portfolios, but credit quality remained stable with net charge-offs at 0.11% of loans annualized.

• Completed acquisition of four California branches, adding $630 million in deposits and $420 million in loans.

Financial highlights

• Net interest income was $624 million, up 6% year-over-year and flat sequentially; net interest margin at 3.10%.

• Total assets at March 31, 2025 were $88.0 billion; loans held for investment were $59.2 billion, up 3% year-over-year.

• Total deposits increased 2% year-over-year to $75.7 billion; customer deposits (excluding brokered) rose 1%.

• Efficiency ratio improved to 66.6% from 67.9% year-over-year, but was higher than the prior quarter.

• Allowance for credit losses was $743 million (1.24% of loans and leases); net loan and lease charge-offs were $16 million (0.11% annualized).

Outlook and guidance

• Management expects net interest income, customer-related fee income, and adjusted noninterest expense to be slightly to moderately higher in Q1 2026 versus Q1 2025.

• Loan growth is expected to be stable to slightly increasing, led by commercial loans, with managed declines in mortgages and CRE.

• Utah tax law change increased Q1 tax expense by $16 million ($0.11 per share), but is expected to reduce future Utah tax expense and accrete back into income.

• Net interest income sensitivity modeled to be up to 8.9% higher in Q1 2026 versus Q1 2025, depending on rate scenarios.

• Economic outlook remains uncertain due to tariffs, trade policy, and potential recessionary pressures.