Zions Bancorporation (ZION) Q3 2024 earnings summary

Executive summary

• Net earnings for Q3 2024 were $204 million, up $14 million sequentially and 21% year-over-year, driven by higher revenues, lower expenses, and strong credit risk management.

• Diluted EPS rose to $1.37, up $0.09 (7%) from the prior quarter and $0.24 year-over-year, with no notable one-time items impacting the quarter.

• Net interest margin improved to 3.03%, expanding for the third consecutive quarter.

• Announced agreement to acquire four FirstBank branches in California, adding $730 million in deposits and $420 million in loans, pending regulatory approval.

• Tangible common equity increased 28% year-over-year and 8% sequentially; CET1 capital ratio rose to 10.7%.

Financial highlights

• Net interest income was $620 million, up $35 million (6%) year-over-year and $23 million sequentially, driven by higher asset yields and loan growth.

• Adjusted pre-provision net revenue was $299 million, up from $278 million in Q2 and 10% year-over-year.

• Efficiency ratio improved to 62.5% from 64.4% year-over-year and 64.5% in Q2.

• Customer deposits increased 1.5% quarter-over-quarter; non-interest-bearing deposits grew 1%.

• Allowance for credit losses was $736 million (1.25% of loans/leases), relatively flat year-over-year.

Outlook and guidance

• Net interest income for Q3 2025 expected to be slightly to moderately higher than Q3 2024, assuming a Fed Funds Target of 3.25%.

• Loan balances projected to be stable to slightly increasing; customer-related noninterest income expected to grow moderately.

• Adjusted noninterest expense for Q3 2025 expected to be slightly higher than Q3 2024, mainly due to technology investments.

• Positive operating leverage and improved efficiency anticipated as revenue growth outpaces expense pressures.

• AOCI loss projected to improve by $950 million, or 35%, from 4Q23 to 4Q25.